Project Velocity Alitalia IT Transformation Initiative for Cost

Project Velocity: Alitalia IT Transformation Initiative for Cost Reduction Sutherland RFP Response

Project Velocity – Executive Summary Objective § Cost Optimization § Increase Productivity § Overall reduction in TCO (50+%) in 10 years Scope § Help Desk on Alitalia applications (3 rd level support) § ESB/BPM projects to integrate company system applications § Project management and business requirement analysis Where We are today* § § § More onsite centric ESB/BPM integration is a need Requirement Analysis may need improvement Solution Design may need a technological framework ITSM fine tuning for Operations How is Industry Progressing § Mature organization are transitioning from IT problem to business solution § Business process down view of IT performance and IT portfolio health § Flexibility to adapt with tactical and strategic business priorities § Solution design on Alitalia technological framework § Corrective maintenance on Alitalia applications § Evolutive maintenance on Alitalia applications (optional) Operational Drivers Sutherland Recommendations* Ü 1. Rightsizing / Right-shoring Ü 2. Standardization/ Tools Automation Ü 3. Predictive and Proactive Delivery Ü 4. Portfolio Health Benchmarking Business Drivers Ü 5. Visibility via Business KPIs and IT KPIs alignment Ü 6. Transformation (from visibility to impact) Ü 7. Performance Management Ü 8. Contractual Flexibility Five Cost Reduction initiatives are expected to bring in savings between 52% – 62% over a period of 4 years followed by steady state* * Needs further due diligence Sutherland Global Services Proprietary & Confidential 2

Snapshot of IT Spend Analysis in Airlines Industry… Overall IT spend by airlines in 2015 was 2. 7% of total global revenues IT spend As % of Revenue* 2015 IT Spend Split Across Categories* Observations § Overall IT spend by airlines in 2015 was 2. 7% of revenues, marginally below the 2. 8% spent in 2014 • Two-thirds of this was controlled by the CIO, with the remainder spread across other departments’ budgets (Shadow IT!). • Sutherland shall work with Alitalia to get the IT spent in the range of industry spend • At the same time, Sutherland will look at areas of reducing spend through Shadow IT and help secure savings to be redirected to R&D to help Alitalia IT to be future ready • The initiatives presented in subsequent slides take into consideration the above suggestions § Almost a third of IT spend in 2015 was on innovation *Source: SITA - THE AIRLINE IT TRENDS SURVEY 2016 Sutherland Global Services Proprietary & Confidential 3

Cost Optimization Initiatives

Having a holistic view towards cost optimization is important… Our Digital IT Experts can help here Our BPO and IT Experts can help here Our IT Experts can help here Sutherland Global Services Proprietary & Confidential 5

Transformation Focus: Leveraging Run The Business (RTB) spend to fund Change The Business (CTB) Initiatives Run-the-Business IT Spending Levels and General Enterprise Status* Unlocking Capital from RTB to drive CTB Illustrative data for a Average Performance Company Run as a Percentage of IT Spending 100% 85% 75% 67% 50% 20% 0% Unlocked Capital Funds CTB • • • Leverage savings from RTB for modernization initiatives • Hybrid model - Combination of managed services and co-sourcing models based on the stage of the program General Enterprise Status Retrenchment Optimization Mature Steady Sate Average for average performance Transformation Fast-growth startup Not in business yet Managed Services model Alignment on IT and Biz KPIs App Portfolio Optimization (APO) / ASM Up to 20%-25% reduction in RTB spend Flexible commercial construct - Savings realization from Year 1 itself • Skin-in the game model • Joint funding of Transformation initiatives • Evaluate Outcome based pricing *Source: Gartner (March 2012) Sutherland Global Services Proprietary & Confidential 6

Based on data analyzed, industry experience, Sutherland recommends 5 key initiatives for significant cost reduction 1 2 IT Transformation Ü Application Transformatio n Ü Operational Transformatio n 20% - 22% 3 Digital Transformation Ü Cloud Ü Mobility Ü Dev. Ops 5 Automation Future Ready IT-as-a-Service Ü Robotics Performance Automation Ü Testing Automation Ü Micro Service based architecture Ü Innovation Ü Xaa. S Ü Service Catalog Ü Chargeback/ Showback 8% - 10% 6% - 8% 10% - 12% 8% - 10% Applicable to: Ü Ü Ü 4 Help Desk on Alitalia applications (3 rd level support) ESB/BPM projects to integrate company system applications Project management and business requirement analysis Solution design on Alitalia technological framework Corrective maintenance on Alitalia applications Evolutive maintenance on Alitalia applications (optional) Ü The initiatives have been recommended based on analysis of industry trends in Airlines and cross industries Ü The initiatives have been recommended keeping into account data provided by Alitalia on IT spends Ü The savings have been calculated over the period of 4 years, where Sutherland is expected to reach steady state Ü Sutherland also recommends redirecting some savings into continuous innovation programs Sutherland Global Services Proprietary & Confidential 7

1. IT TRANSFORMATION Potential Savings: 20 -22% Applicable to: Ü ESB/BPM projects to integrate company system applications Ü Project management and business requirement analysis Ü Solution design on Alitalia technological framework Ü Corrective maintenance on Alitalia applications Sub Initiatives Ü Evolutive maintenance on Alitalia applications (optional) Note: Some of the initiatives might be inflight @ Alitalia. The levers are for both efficiency and effectiveness. The sub initiatives shall be mutually decided during due diligence phase Sutherland Global Services Proprietary & Confidential 8

2. DIGITAL TRANSFORMATION Potential Savings: -10% 8 Applicable to: Ü Help Desk on Alitalia applications (3 rd level support) Ü ESB/BPM projects to integrate company system applications Ü Solution design on Alitalia technological framework Ü Corrective maintenance on Alitalia applications Sub Initiatives Ü Evolutive maintenance on Alitalia applications (optional) Note: Some of the initiatives might be inflight @ Alitalia. The levers are for both efficiency and effectiveness. The sub initiatives shall be mutually decided during due diligence phase Sutherland Global Services Proprietary & Confidential 9

3. AUTOMATION Potential Savings: -10% 8 Applicable to: Ü Help Desk on Alitalia applications (3 rd level support) Ü ESB/BPM projects to integrate company system applications Ü Project management and business requirement analysis Ü Solution design on Alitalia technological framework Sub Initiatives Note: Some of the initiatives might be inflight @ Alitalia. The levers are for both efficiency and effectiveness. The sub initiatives shall be mutually decided during due diligence phase Sutherland Global Services Proprietary & Confidential Ü Evolutive maintenance on Alitalia applications (optional) 10

4. FUTURE READY Potential Savings: 6 -8% Applicable to: Ü ESB/BPM projects to integrate company system applications Ü Solution design on Alitalia technological framework Ü Corrective maintenance on Alitalia applications Ü Evolutive maintenance on Alitalia applications (optional) Sub Initiatives Note: Some of the initiatives might be inflight @ Alitalia. The levers are for both efficiency and effectiveness. The sub initiatives shall be mutually decided during due diligence phase Sutherland Global Services Proprietary & Confidential 11

5. IT-AS-A-SERVICE Potential Savings: 10 -12% Applicable to: Ü Help Desk on Alitalia applications (3 rd level support) Ü ESB/BPM projects to integrate company system applications Ü Project management and business requirement analysis Ü Solution design on Alitalia technological framework Sub Initiatives Note: Some of the initiatives might be inflight @ Alitalia. The levers are for both efficiency and effectiveness. The sub initiatives shall be mutually decided during due diligence phase Sutherland Global Services Proprietary & Confidential Ü Corrective maintenance on Alitalia applications Ü Evolutive maintenance on Alitalia applications (optional) 12

Cost Reduction Projections based on key Initiatives 52% - 62% er 4 savings ov years 10% Redirect 10% savings back into the system to drive innovation initiatives Ü Sutherland shall work for achieving 52% - 62% savings over 4 years Ü We recommend redirecting at least 10% of the savings back into technology led Innovation initiatives to move towards a more mature IT that is future proof Sutherland Global Services Proprietary & Confidential 13

Projections for Savings in each IT functional area Ü Savings in Labour cost shall be brought in by outsourcing and offshoring activities to lower cost global locations Ü Process optimization and automation is expected to bring in lot of savings in Level 3 Helpdesk, Project Management Ü Dev. Ops and Newer architecture is expected to bring in considerable savings in Solution Design and ESB/BPM projects Financial Figures in ‘ 000 € % Reduction shown in the table above is on the base of original spend of 10. 9 M € Sutherland Global Services Proprietary & Confidential 14

Analysis for the existing roles that can be Outsourced Further how many Outsourced roles can be Offshored Headcount of 221 is excluding CIO, DIRECTORS and assistants Sutherland Global Services Proprietary & Confidential 15

Execution Methodology

Methodology for IT Transformation Discover • Understanding overall objective • Interviews with key stakeholders • Data collection using SGS proprietary questionnaires Design Project This is a Velocity sample text • Design and Identify various initiatives • Finalize initiatives and get management buy-in Plan • Define work-streams for execution • Identify stakeholders and teams for execution Implement • Implement finalized initiatives • Report to Management Innovate • Bring in innovation and continuous improvement Sutherland Global Services Proprietary & Confidential 17

Why this approach “Bring in Innovation and continuous improvement” Delivering Results Innovate Uninformed Optimism Discover “A new initiative is going to make a quick and big impact in multiple areas” Informed Pessimism Design “Complexity comes into picture as deeper analyses & design is performed” Change Readiness Informed Optimism Implement “Implement and Execute the plan” Hopeful Realism Plan “Bringing all factors into one place for decision making and planning” Time Sutherland Global Services Proprietary & Confidential 18

Indicative Roadmap Ü Discovery phase shall be conducted onsite. It is expected to be around 4 -6 weeks Innovate Implement Plan Design Discover Due Diligence Design and Finalize Initiatives 6 -8 weeks Plan each work stream Ongoin g Month 6 to M 48 Month 2 to M 6 Design | Staggered Transition | Stabilization Due Diligence Innovate & Continuously Stabilize & Manage Improve Services Service Delivery Reporting Solution Architecture Redesign Technology Analysis Application Portfolio Analyses Operation Analyses Out-Sourcing Knowledge Management Framework Setup Continuous KM Update & Refinement Finalize Initiatives Transition Plan Governance Setup Resource Plan Reporting and Benchmarking Measurement Transition Offshoring Statistics & Reports Sutherland Global Services Proprietary & Confidential Continuous Improvement Ü Savings shall be benchmarked during the planning phase and shall be measured throughout the implementation phase Ü Transition Plan and Governance structure will be integrated as provided in our BPO RFP response Ü It is expected that the implementation of plan shall start within 4 - 6 months of the project start date Ü It is expected that the Steady State will be achieved by the end of 4 years

Sutherland Governance Framework IL U L T S A R Sutherland Global Services Proprietary & Confidential I T E V

Sutherland Digital – Transformation Program Approach (Example) IL U L T S A R Sutherland Global Services Proprietary & Confidential I T E V

Application Decommissioning Process ■ Sutherland will support decommission of legacy applications ■ Decommissioning date will be arrived with mutual agreement ■ Sutherland will retain resources to support the applications till the decommissioning date ■ Application will be handed over to platform support team if no active work is performed IL U L T S A R I T Sutherland Global Services Proprietary & Confidential E V Activities in Decommissioning ■ Pre-Decommissioning ■ Identify business impact ■ Document the HW and SW ■ Initiate activities for decommissioning ■ Decommissioning ■ Support in redirecting system calls ■ Disable access and jobs ■ Provide support to Production ■ Assist in communications ■ Post Decommissioning ■ Support in archive of code base ■ Support in archive of data ■ Assist in preparing closure report ■ Release all manpower and resources

23 Sutherland Transition Framework Transition – Onboarding Planning Knowledge Acquisition Planning & Initiation • Competency Based • • • Transition Plan/Evaluation Matrix Training Plan Resource on-boarding plan Client SME Interview schedule Entry & Exit criteria for subsequent phases Organization model Transition Project Management Plan Knowledge Acquisition and Transition Plan Risk and mitigation Plan SQA process and Plan Communication Plan Roles & Responsibilities Matrix at task level Application level Transition Plans • Application KA • • • • • Status Tracking documentation Functional Overview Technical Overview Software and Hardware Environments / Servers / Security / Access Technical Architecture Data Model Inventory Other project related KA documentation Production schedules, Environment UAT process and Release process Security requirements Project Approach SME interview kits SME interview Findings Reverse Presentations KA Status report IL Reverse Shadow Support • • documents Transition Status report Daily Status report Weekly status tracking sheet Competency Evaluation Matrix Control Book Review comments during peer review Shadow support scorecards Open issues in shadow activities SLA metrics Updated Knowledge artifacts U L • • T S A R E V • Status Tracking documents Transition Status report Daily Status report Weekly status tracking sheet Review comments during peer review Reverse Shadow support scorecards Open issues in reverse shadow activities Track and benchmark SLA metrics Updated Knowledge artifacts Updated Competency Evaluation Matrix I T • • • Steady State • Dashboard • SLA reviews (met / missed) • Project status • Client issues • Monthly Project Report • Ticket tracking data • Test effectiveness • Root-cause • • Sutherland Global Services Proprietary & Confidential Analysis summary of SLAs missed Recurring issue in a set of objects Analysis Report Team productivity Training needs Process improvement requirements Application stability, complexity, volatility KT effectiveness

Key Highlights of the Solution Time tested framework with continuous feedback loop Comprehensive reporting using graphs and executive dashboards Comprehensive questionnaires & analyses methodology Recommendations and Roadmap What-if analyses considering various levers for cost optimization Robust Execution Strategy Sutherland Global Services Proprietary & Confidential Sutherland Proprietary Tools and Frameworks leveraged 24

Digital Transformation Services – Case Study Digital Transformation for a large Insurance Company § Smart Workflow and Document Management - Automated routing of transactions and documents, and the assignment of work to robots or human processors according to process maps, data driven decision trees, approval hierarchy, and workload. Our Solution § Customer is a large indigenous property and casualty insurance company. § Digitize manual forms § OTC receipting for Life/Health and Pn. C § Document management § Updating back-end systems with data from the forms § Digitization at Source - Digitization of online forms with PDF 417 and Q-code creation cloud based Digital Solutions; Benefits - Increased efficiency with automated Smart Workflow Management, Robotics Processing and Analytics and Smart Forms. § D@S Online Form Entry: Scanning of hand written manual forms and provide online entry screens to digitize the data. Reports to be created around Aging, productivity statistics, performance and status reports. § e. Receipting: OTC receipting for Life / Health and Pn. C with multiple instruments § Robotics Process Automation - Robotics software to post data from the forms directly to backend systems. § Customer Relationship Management - This Cloud Based Digital CRM Solution is based on Microsoft Dynamics. It manually and electronically tracks all customer interactions at all customer touchpoints and links to all relevant customer existing and pending transactions, and displays them in a Unified Desktop. § SCAN 360 Analytics - This Cloud Based Digital Analytics Solution is based on Sutherland’s SCAN 360 (Sutherland Customer Analytics Network 360) Mongo. DB No. SQL Platform. Synchronize all new digital data and all relevant legacy data (optional) with the SCAN 360 DW to enable powerful and comprehensive reporting and analytics. § Customer relationship management Benefits and Achievements Our Solution Client Engagement Client Overview 25 Sutherland Global Services Proprietary & Confidential § Increased efficiency with automated Smart Workflow Management, Robotics Processing and Analytics and Smart Forms. § Innovative engagement model – Pay per use – as a service - Mix of discovery led by T&M, followed by platform based engagement delivery software as-aservice for self-service and charging for transactions (pay per use) 25

About Sutherland

A Trusted Global Leader Enabling Digital Transformation Sutherland Fast Facts Revenue >$1 Billion, 10 year CAGR of ~18% Employees 30, 000+ Employees Operations 40 Centers, 19 Countries Clients Fortune 50 and Fortune 500 Engagement 60% Revenue is outcome based SUTHERLAND DIGITAL & IT SERVICES Innovation (Iaa. S) Innovation labs at SFO, U. S and U. K for Design Thinking Consulting teams with domain experts to help with discovery and assessment Analytics (Aaa. S) 92% improvements y-o-y through big data and analytics programs BPO Operations (BPaa. S) Platform as a Service (Paa. S) IT Services Verticals Telecom, Technology, Healthcare, Retail, Travel, Banking, Insurance, Government Sutherland Global Services Proprietary & Confidential Business process reengineering, i. BPO, Social Media, Customer experience SCAN 360 and Neuovora (Analytics , Consumerism, Smart Leap) Intelligent Automation Agile driven Cloud-based digital transformation 27

IT Services Snapshot – Domain Led, focused on Customer Experience Fast Facts Clients 25+ Fortune 50 and Fortune 500 Operations 40 Centers, 19 Countries Engagement 60% Revenue is outcome based Verticals Telecom, Technology, Healthcare, Retail, Travel, Banking, Insurance, Government Business Challenges / Needs Our IT Services Offering Key Differentiators Demand for hybrid services for cloud, emergence of connected products Product Engineering Cost complexity with IT Integrations and need for specialized testing Quality Assurance Complexity in Data and Lack of Domain Expertise BI and Analytics 92% improvements y-o-y through big data and analytics programs Next. Gen IT Infrastructure Powered by productivity tools, ITIL process, robust service management platforms Application Services Re-engineered business process coupled with front-end and backend application transformations CRM Enhanced Omni-channel customer experience management Increased adoption of cloud and complexities in mixing cloud and on premise services Legacy modernization, application security, Hybrid App adaptations Increasing need for 360 degree view with CX/UX design, Omni channel, Cloud CRM Sutherland Global Services Proprietary & Confidential Platform Levers Domain Led, Digital First Smart. Quest, Lean Devops Agile framework Smart. QA – Automation framework SCAN 360 Smart. QA 28

Sutherland Travel Solutions Connect Services Back office § § § § § Customer Care & Complaints Inbound/Outbound ( Sales and Reservations) E-commerce - Web, Technical Support Mail & Chat Support Account Management Loyalty Management systems Back office Customer Support Customer Experience Management Human Resources & Procurement GDS and Online Mid-office Fulfillment Over-the-topservices Intelligent Finance Ecosystem § § § § § Business. Process Reengineering Analytics & Consulting Robotic Process Automation Innovation and experience labs Social Media Management Sutherland Global Services Proprietary & Confidential Revenue Accounting AR/AP Audits(GDS Booking/Ticketing/Usage) Fare Filling General Accounting & Reconciliations 29

We enable… E N A B L E 120, 000 calls annually 144 international destinations & 1, 000 flights per week 1, 000 property listings in 190 countries, 140+ aircraft 30 million passengers, 120, 000+ destinations ~$178 million worth billing annually 200, 000 hotels across the globe Sutherland Global Services Proprietary & Confidential 30

Our Unique Proposition- Airline “Follow the Fare” Large carrier in South East Asia. Benefits: Business planning insights Revenue Network Analytics Several leading airlines Benefits: Business planning Forecasting Market, Competition Analysis Several airlines in Middle East and Asia Benefits: Upto 5% on interline revenuer Fare Class Realignment Large Carrier in South East Asia Benefits: Upto 10%of interline payables Fares Distribution Airline Services Interline Evaluation and Analytics Leading airlines: Middle East Europe, South East Asia Benefits: 50% cost reduction Reservation Support Call Centers Leading LCC in and a leading online portal Benefits: Cost reduction Revenue Integrity Pre/Post Flight Services Revenue and Accounting Recovery A large Airline in the Middle East Benefits: Up to 2% of GDS cost Several Airlines in the Middle East, Asia and Americas Benefits: Upto 0. 5% of revenue and 25 -30% reduction in cost Sutherland Global Services Proprietary & Confidential 31

Significant RAPID based Revenue Accounting Experience Airlines Experience § § Over 10+ years of experience in the Airline Industry Serving 25+ small to large international airlines Travel vertical with 20+ SMEs and 1500 IATA trained Agents Experience with tools such as Interline Platform (Titan), Fare Distribution Platform (De. MAT), PAX Audit Platform (FAAS & AMS), Fare Distribution Platform (De. MAT), Credit Card Billing & Reconciliation (CCB & Rev. Recon), Revenue Management Platform (PRIDE) Experience in Revenue Accounting § § § Sales / Flown processing and accounting Interline processing & billing Proration – including MPA’s, SPA’s and provisos Reconciliation – Flown and sales matching Code share and passenger accounting Cargo Revenue Accounting & Receivable Management Experience with RAPID § § Owned and operated RAPID for 3 major Airlines for 8 Years Extensive knowledge of following RAPID Modules and associated data models • Reference Masters, Sales, Flown, Interline Billing (Workflow, Inward, Outward, Exceptions), Accounts, MIS/Reporting (Accounting, Flown, Sales, Interline) Sutherland Global Services Proprietary & Confidential 32