contents - lsg sky chefs€¦ · contents 02 letter from the executive board 04 lsg group – our...

OUR WILLINGNESS AND ABILITY TO ADAPT AT PAR WITH THE RAPIDLY CHANGING MARKET WILL REMAIN CRUCIAL TO OUR SUCCESS AND FUTURE.

CONTENTS02 Letter from the Executive Board

04 LSG Group – Our Integrated Approach

06 LSG Group 2015 – Major Milestones

08 Markets and Competition

10 Business and Strategy

12 Sales and Customers

13 Partnerships and Joint Ventures

14 Products and Services

18 Revenues and Earnings

19 Awards

20 Quality and Food Safety

22 Worldwide Presence

26 Corporate Social Responsibility

27 Environmental Care

29 Environmental Successes

30 Outlook

33 Consolidated Income Statement

34 Executive Board Responsibilities

35 Key Figures

OUR WILLINGNESS AND ABILITY TO ADAPT AT PAR WITH THE RAPIDLY CHANGING MARKET WILL REMAIN CRUCIAL TO OUR SUCCESS AND FUTURE.

03 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ LSG GROUP | ANNUAL REVIEW 2015|

In 2015, we continued to benefit from growing passenger volumes around the globe, albeit with regional fluctuations. As a result, demand for inflight services also grew, not only in terms of volume but in the level of quality catering provided for the network carriers’ premium classes. At the same time, we saw a significant upward trend in the number of requests for onboard-retail programs designed for their economy classes, as well as low-cost and charter airlines.

In light of market changes in the more mature markets, we have also begun the transformation of our business model. This includes organizational changes in order to better respond to customers requiring leaner and more efficient services, as well as the acquisition of Retail inMotion, which enhances our skills and widens our portfolio in the increasingly important onboard-retail area. In addition, our adjacent market teams were able to further pursue their path of expansion by winning a number of high-profile train operators and convenience retailers as new customers.

Going forward, a major priority will be to strengthen our existing partnerships and create new ones that will enable us to enter new markets or enhance our skills. Our willingness and ability to adapt at par with the rapidly changing market will remain crucial to our success and future. In light of that, transformation will continue to be the name of the game throughout 2016. We know that we have the talent and commitment necessary to get this done across our worldwide network.

We look forward to continue working with you and defining mutually beneficial oppor-tunities. We would also like to thank you for your continued trust in our company.

DEAR READER,LETTER FROM THE EXECUTIVE BOARD

Erdmann RauerCHIEF EXECUTIVE OFFICER

Dr. Kristin NeumannCHIEF FINANCIAL OFFICER

Jochen MüllerCHIEF OPERATING OFFICER

yours sincerely,yours sincerely,

05| ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ LSG GROUP | ANNUAL REVIEW 2015PAGE 04 05| ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ LSG GROUP | ANNUAL REVIEW 2015

The LSG Group’s rich portfolio includes catering, onboard retail, inflight equipment and logistics, consulting and lounge services for airlines. The Group’s dedication to culinary excellence and expertise in logistics has enabled it to sucess-fully enter adjacent markets, like train services and convenience retail.

LSG GROUP – OUR INTEGRATED APPROACH

The LSG Group brand stands for the combined power of the activities under its umbrella. It represents the company’s integrated approach and elevates the contribution of all group brands. The main brands belonging to the LSG Group are:

LSG Sky Chefs is best known as the world’s largest airline-catering company, but actually does a lot more than that. We support customers, such as airlines, railway operators and retailers, with a wide range of services. These include retail capabilities, lounge management and a substantial assortment of food solutions, from traditional catering to frozen meals and packaged snacks. www.lsgskychefs.com

The SPIRIANT brand was launched in 2013 to give a fresh face to our equipment division. The product range features an array of creatively designed and intelligently engineered meal-service products, commodities, comfort items and galley inserts. www.spiriant.com

SkylogistiX, our joint venture with international logistics provider Kuehne + Nagel, designs strategies to streamline logistics and supply-chain management. With a dedicated online platform that integrates seamlessly with a company’s own IT system, an airline can easily monitor the entire inflight supply chain. www.skylogistix.com

Retail inMotion focuses on the increasingly important onboard retail business, which drives airlines’ ancillary revenues and reduces inflight costs. Its expertise encompasses the procurement and distribution of buy-on-board products, complete management of buy-on-board programs and end-to-end IT support of those programs through proprietary software. www.retailinmotion.com

Media inMotion’s portfolio includes hard-ware and software solutions for inflight retailment systems, which offer much more variety and choice than traditional inflight entertainment systems. These systems also integrate onboard shopping capabilities, thus providing an additional sales channel to passengers, as well as broadening the range of products and services offered for sale onboard. www.mediainmotion.aero

Oakfield Farms Solutions specializes in developing, designing and manufacturing pre-packaged boxed meals from central locations and distributing them to end users within the travel-retail market. Meal boxes are designed to not only hold pre-packaged food, but also fresh choices like fruit cups or sandwiches. www.oakfieldfarms.com SCIS Air Security is the leader in airline-catering

security in the U.S. Its portfolio also includes airport operations area, aircraft and cargo security, personnel screening, inflight entertainment and point-of-sales solutions, duty-free and cash-management services. www.scisairsecurity.com

The Ringeltaube shops can be found at major German airports, offering a huge variety of beverages, perfumes, cosmetics, travel accessories and gourmet food exclusively to airport and airline employees. www.ringeltaube.de


LSG GROUP 2015 – MAJOR MILESTONES

At the 2015 Quality and Safety Alliance In-flight Catering Program (QSAI) Awards, the LSG Sky Chefs Munich Customer Service Center is recognized with Medina’s Platinum Award as the best catering facility worldwide.

A new state-of-the-art Customer Service Center opens in Tampa, Florida, U.S., covering an area of approximately 30,000 square feet (2,700 square meters).

QSAI AWARDS

TAMPA OPENING

GOOD DESIGN AWARD

NEW ZEALAND OPENING

SANTIAGO OPENING

WTCE INTEGRATED PORTFOLIO

RED DOT

AWARD

STARBUCKS CONTRACT

CIRCLE KBUSINESS

DEUTSCHE BAHN

COOPERATION

CHICAGO OPENING

In the U.S., the company’s global convenience-retail team acquires new business with Circle K in the Phoenix, Arizona, and Santa Ana, California, markets.

Cooperation with Deutsche Bahn is extended with the introduction of the new Intercity 2. LSG Sky Chefs is responsible for serving passengers directly at their seats with a selection of freshly baked goods, sweet and salty snacks, as well as hot and cold drinks.

A new CSC opens in the immediate vicinity of Chicago’s O’Hare Airport. The state-of-the-art facility serves more than 500 flights per day, primarily for hub-customer United Airlines.

SPIRIANT wins the GOOD DESIGN Award 2014-2015 for their work designing the Lufthansa Premium Economy Class tableware.

LSG Sky Chefs’ newly built facility in Auckland, New Zealand, officially celebrates its grand opening after moving their operations into the new facility at the end of 2014.

LSG Sky Chefs breaks ground on a new Customer Service Center in Santiago, Chile, with a capacity to produce 59,000 meals per day for airline customers, as well as convenience-retail stores.

SPIRIANT receives the highly esteemed Red Dot Award for the Lufthansa Premium Economy Class tableware.

A new contract with Starbucks marks the company’s entry into the Chinese convenience-retail market. A new range of products becomes available at 60-plus Starbucks stores in major metropolitan areas.

During the annual World Travel Catering & Onboard Services Expo (WTCE), the LSG Group unveils its integrated portfolio of products and services across all aspects of the travel chain that are customized to individual passenger lifestyles and needs.

JFK LOUNGES

RiM & MiM

The LSG Sky Chefs Lounge Team takes over the management of the Lufthansa lounges at New York’s John F. Kennedy Airport.

LSG Group acquires the remaining shares in Retail inMotion and full ownership of Media inMotion. The deal was closed in early 2016.

VIRGIN TRAINS SNACKS

In the UK, Oakfield Farm Solutions acquires new Virgin Trains business with an ambient snack-box concept. The trains connect major cities like London, Birmingham, Manchester, Liverpool, Glasgow and Edinburgh.

MYANMAR CONCESSION

GODDARD JOINT

VENTURE

The company’s concession and license agreement at Yangon Mingaladon Airport (RGN), Myanmar, is extended by 10 years.

The existing joint-venture contract with Goddard Enterprises Ltd. is extended by an additional 20 years. It comprises 21 locations throughout Latin America and the Caribbean.


MARKETS AND COMPETITIONTransformation of the business model will ensure the long-term sustainability of the global network

The market and competitive environment within which the LSG Group operates is still marked by consolidation on the part of customers and com-petitors. Passenger figures continue to rise on a worldwide scale, albeit with marked regional differences. The travel industry in general, however, has a much wider portfolio to offer today.

Airlines use very different business models ranging from low-cost regional and long-haul carriers to hybrid airlines offering a choice between flight “packages” or components to pick from, charter and traditional network carriers. As a matter of fact, virtually every airline group is presently operating under a variety of models in an effort to serve consumers with the right offer to fit their particular needs.

Consequently, onboard-service requirements have changed and will continue to change significantly. Indeed, they are no longer limited to food and beverage. They range from innovative onboard-retail programs (including inflight-entertainment options) to hybrid concepts combing onboard-retail and complimentary service, depending on class or fare, and high-end culinary experiences designed according to the individual needs of passengers and consumers. Additionally, airlines are looking for equipment solutions that support their brand values. And, in an effort to lower costs, they want intelligent logistics solutions that can help them manage their onboard equipment.

Moreover, airline customer tenders (or bids) are more regularly being issued with a modular structure with individual contracts for single-service packages (production, assembly and delivery) being awarded to different providers. This lowers the bar considerably for providers – in particular food manufacturers and logistics companies – that want to enter the market. As a result, surplus catering capacities, especially in the mature European markets, and competition between airlines generate considerable price and competitive pressures.

The LSG Group is addressing this situation with a company-wide transformation process aimed at meeting future customer and consumer needs. For example, the company is developing and implementing holistic and onboard-retail concepts offering boutique products, entertainment programs and other services in addition to traditional inflight catering. These concepts are being perceived more and more as a differentiating factor for airlines, as they make it possible for them to create an individual travel experience for the passenger. In addition, they are an extra source of income for carriers.

In its core business field, airline catering, LSG Sky Chefs is the market leader with only one global competitor and a small number of local and regional inflight-service providers with a

similar portfolio. However, over the past few years a growing number of logistics and food companies able to generate part of the value chain for airlines have entered the market.

The company’s network continued to change during the year under review. LSG Sky Chefs opened new units in Tampa and Chicago, USA, and started building production facilities in Santiago de Chile, Nairobi, Kenya, and Lagos, Nigeria. In Vilnius, Lithuania and Moscow-Vnukowo, however, it has withdrawn because these airline-catering markets are in decline due to adverse economic and political conditions. The license agreement in Yangon, Myanmar, was extended by 10 years.

HYBRID AIRLINES

LOW-COST AIRLINES

LONG-HAUL AIRLINES

YOUR CHOICE AIRLINES


The LSG Group continues to expand and diversify while its business model undergoes transformation BUSINESS AND STRATEGY

ENHANCE SERVICESANALYZING CONSUMER NEEDS

CHANGING REQUIREMENTSGROWTH STRATEGY ADDRESSING NEW

CUSTOMER SEGMENTS

CULINARY EXCELLENCEd y n a m i c m a r k e t

h i g h l y c o m p e t i t i v e e n v i r o n m e n t

With airline catering as its core business, the LSG Group has continuously expanded both its portfolio and global presence over the past few decades. The company is successfully pursuing its growth strategy in the face of a dynamic market and highly competitive environment. Beyond the extension of its wide range of products and concepts for the international airline industry, the Group is increasingly addressing new customer segments in markets that are adjacent to its core competencies – culinary excellence and logistics. Those are primarily train operators and convenience-retail store chains.

At the end of year 2015, the LSG Group comprised 155 companies. Its parent company is LSG Lufthansa Service Holding AG based in Neu-Isenburg, Germany. Since the previous year, the lineup of consolidated companies experienced a number of changes, such as the first-time consolidation of a Nigerian catering firm and the deconsolidation of a Lithuanian company.

The LSG Group is managed by a three-member Executive Board that includes Erdmann Rauer as Chief Executive Officer (CEO since October 2014 and with the company since 2006), Dr. Kristin Neumann as Chief Financial Officer (CFO and with the company since July 2014) and Jochen Müller as Chief Operating Officer (COO and Executive Board member since March 2004 and with the company since 2003). The composition of the Executive Board represents a strong mix of corporate insight, experience from other industries and diverse personal backgrounds and skills.

The company’s airline-catering services are marketed worldwide under the long-established “LSG Sky Chefs” brand. The brand was launched in 1993 when LSG (formerly Lufthansa Service Gesellschaft) and Sky Chefs (a former catering subsidiary of American Airlines), the two dominant players in their respective markets, established a cooperation

and LSG acquired its first shares in Sky Chefs. The relationship culminated when LSG acquired Sky Chefs in June of 2001.

Today, LSG Sky Chefs delivers its services at 211 airports in 50 countries. Despite the ups and downs characteristic of the airline and catering industries, the company has steadily maintained its number-one position through sustainable management paired with an entrepreneurial mindset. In its two home markets, Germany and the United States, the company can be found at virtually every major airport. Through mergers and management contracts, it has constantly expanded its presence in the growth markets of the Latin America, Asia and Eastern Europe regions over the last two decades. The focus of its current expansion is also on select high-growth countries in Africa, where it is entering markets in close cooperation with local partners.

The airline-catering activities are managed by five regional management teams with responsibility for North America, Latin America, Europe, Asia/Pacific and the Emerging Markets. This structure ensures that very diverse customer requirements based on market maturity or growth, expansion opportunities and cultural differences are adequately met.

With its core competencies as a basis, the LSG Group applies its more than 70 years of experience in developing in-flight service concepts and processes to broaden its portfolio. The company’s culinary expertise allows it to meet the highest global food-safety and hygiene standards, plus a variety of requirements regarding the authenticity and diversity of ethnic and non-allergenic food. Its in-depth logistics and process knowledge also enables the LSG Group to develop and implement sales-boosting onboard-retail programs in close cooperation with its subsidiaries Retail inMotion and SCIS Air Security.

The company continues to enhance its services in order to accommodate the changing requirements of its airline customers. This entails the refinement of its culinary-excellence philosophy in order to widen the variety of ethnic meals it offers, which are increasingly in demand. It also involves gaining the capacity to handle the complete management of onboard retail processes – from analyzing and recording the needs of consumers to the selection of suitable products, demand forecasting, steering, providing logistics and sales processes, as well as invoicing.

In addition, the LSG Group continues to expand its activities beyond its core competencies through the development and procurement of functional inflight-service equipment via its subsidiary SPIRIANT. It also offers logistics solutions providing more efficiency in the use of inflight-service equipment through SkylogistiX, a joint venture with Kuehne + Nagel. The LSG Group is also increasingly using its network and know-how to expand in the area of airline-lounge management on an international level.

Beyond its airline customers, the LSG Group is successfully applying its core competencies to reach new customer groups. Over the past five years, it has built a reputation and solid market positon by serving a growing number of railway

companies in Europe, primarily focusing on high-speed train operators who offer a popular alternative to air travel within the continent. In the United States, the LSG Group has expanded its convenience-retail customer base and is currently taking this business to an international level. In Germany, the Group also has a presence at many airports with its Ringeltaube shops, serving airport and airline employees.

Furthermore, the company remains committed to continue nurturing its capacity for innovation when it comes to products and processes. In this area, it benefits from its broad experience dealing with a wildly diverse set of customers and the consumer research it conducts.

In response to the persistent cost pressure and changing customer requirements, structures and processes are constantly being reassessed. This helps in standardizing processes in what is a highly decentralized network, creating synergies, greater transparency and comparability. It also produces a uniform alignment of service processes for customers who are served worldwide. Additionally, these reassessments are necessary in transforming the company’s business model in response to fast-changing market and customer requirements.

The Group is increasingly addressing new customer segments in markets that are adjacent to its core competencies.

CHANGING REQUIREMENTSENHANCE SERVICES

The Group new customer segments core competencies.


A strong retention rate and new business boosted revenuesSALES AND CUSTOMERS

Where global expertise meets local market know-how

PARTNERSHIPS AND JOINT VENTURES

Over the past several years, the LSG Group has widened its customer base significantly by entering into new adjacent markets.

Its core customer group, airlines, includes all international and many national and regional carriers. New target clients are primarily train operators and convenience-store chains.

Relationships with roughly 300 airlines vary greatly with regard to scope, duration and intensity. Some are global partnerships where service is provided at more than 50 locations. Others are individual customer relationships limited to just a few stations. The company’s high service quality, however, is continuously reaffirmed by the strong retention rate it enjoys and a positive net new business performance.

In fiscal year 2015, demand for airline-catering services and profit-boosting retail programs rose in general, albeit with regional differences. The LSG Group posted sales increases in virtually all markets. Only countries in Eastern Europe and select markets in Africa suffered a decline in sales as a result of adverse economic or political conditions.

Existing contracts with numerous airline customers were extended or expanded and new ones signed. The extension of the contract with Delta Air Lines at its Detroit hub and SN Brussels in Brussels deserve special mention. Furthermore, the expansion of worldwide contracts with Air New Zealand and Japan Airlines, as well with the Thomas Cook Group in Europe were also noteworthy. At the same time, deliveries to Etihad increased with new added locations in the U.S. The lounge team was very successful, too. It took over the management of the Lufthansa lounges in New York, won the contract for the existing and new lounges in Munich and will be catering for all SWISS Lounges at Zurich Airport as of early 2016.

Business with convenience-store chains is primarily centered in the North American market, where the company benefits from a competitive advantage based on its many locations there. In 2015, its business grew with Circle K. However, these retail activities also went global with new Starbucks contracts in Chile and China.

Service concepts for railway operators sell particularly well in Europe because of the extensive network of high-speed lines that crisscross the continent and Great Britain. As a result, customers Deutsche Bahn in Germany and Virgin Trains in the UK were added to the portfolio.

RISING

INCREASING EXPANDING

GROWING

In addition to its own wide range of airline-catering locations, the LSG Group has had extensive joint ventures with airlines and local companies for decades, generating access and networking opportunities in their respective markets. Major partnerships including more than one location span the globe:

Russia: Aeromar, the 51/49 joint venture with Russian carrier Aeroflot was established in 1989 at Moscow-Sheremetyevo Airport. Today, it comprises six locations in Rostov on Don, Sheremetyevo, Simferopol, Sochi, St. Petersburg and Vladivostok and is the number-one caterer in Russia. In 2012, the LSG Group entered into a partnership with Novaport, a Russian airport operator, in Novosibirsk and Chelyabinsk..

China: Thirteen joint ventures with major Chinese airlines, authorities and local partners at 19 airports. Established between 1990 and 2014, they include units in Beijing, Chengdu, Dunhuang, Guangzhou, Hangzhou, Hefei, Hong Kong, Kunming, Lanzhou, Lijiang, Nanchang, Nanjing, Sanya, Shanghai-Hongqiao, Shanghai-Pudong, Shangri-La, Urumqi, Wenzhou and Xian.

Latin America/the Caribbean: The partnership with Goddard Enterprises was founded in 1995 with a shareholding of 49 percent. It comprises 22 locations in 18 countries in Latin America and the Caribbean: Antigua, Barbados, Bermuda, Cayman Islands, Colombia, Ecuador, El Salvador, Grenada, Guatemala, Honduras, Jamaica, Netherlands Antilles, Paraguay, St. Lucia, Trinidad and Tobago, Uruguay, Venezuela and the U.S. Virgin Islands. In 2015, the agreement was extended by another 20 years, until 2035.

Mexico: Aerococina de Mexico was established in 1997 with a current shareholding of 51 percent, and it is present in Bajio, Cancun, Cozumel, Guadalajara, Merida, Mexicali, Mexico City, Monterrey, Puerto Vallarta, San Jose del Cabo and Tijuana.

United Kingdom: Alpha LSG Limited – In 2012, LSG Sky Chefs and Alpha Flight Group joined forces in the highly competitive UK market. Today, they serve 17 airports: London-Heathrow, London-Gatwick, London-Stansted, Birmingham, Manchester, Glasgow, Edinburgh, East Midlands, Newcastle, Bristol, Cardiff, Doncaster, Luton, Prestwick, Leeds-Bradford, Aberdeen and Belfast.

South Korea: The joint venture with Asiana Airlines was established in 2003 with a shareholding of 80 percent. Initially limited to the fast-growing Seoul-Incheon airport, today it is also present at the other two major airports in South Korea, Seoul-Gimpo and Busan.

Japan: In 2014, LSG Sky Chefs entered into a partnership with Cosmo Enterprise Co., Ltd. by acquiring 20 percent of the shares from Japan Airport Terminal Co., Ltd. The joint venture is present at Tokyo-Narita and -Haneda airports.

These and many other local partnerships are mutually beneficial. While the LSG Group benefits from the local know-how and market access of its partners, these companies gain access to a rich source of expertise in important areas, such as operations, quality and technology, as well as research and development.

Beyond geographic expansion, the LSG Group has embarked in other important partnerships to enrich its product, logistical and technological expertise, which is indispensable in meeting changing customer needs. These partnerships are described in more detail in the Products and Services section of this report.

Currently, the Group’s partnerships comprise more than 100 global locations. In 2015, non-consolidated revenues from partnerships amounted to EUR 1.3 billion.


1The LSG Group’s commitment to live up to its vision (“To deliver the taste of the world to make your customers’ day better”) is strongly supported by the dedication and diversity of its people, comprehensive network and loyal partnerships.

The company constantly works on optimizing and expanding its range of products and services with the aim of creating an enjoyable experience for passengers and consumers alike. These efforts are aided by its in-depth understanding of its customers (airlines, train operators and convenience-retail chains) and growing knowledge about the end consumer and the trends that influence their behavior. Meeting the needs of customers requires a well-balanced portfolio that can increase consumer satisfaction and addresses their necessity for differentiation while delivering efficiency and generating additional revenues. The Group’s portfolio includes:

The core of LSG Group’s broad scope of activities is its proven expertise in airline catering, which spans more than 70 years of history and is marketed under the well-established “LSG Sky Chefs” brand name. The company’s culinary excellence and experience in day-to-day logistics are the two major pillars of this business and have enabled it to enter new adjacent markets, such as catering to train operators and delivering prepared foods to convenience-retail stores.

The company employs more than 700 chefs who are experts in a wide variety of cuisines. This allows it to offer authentic high-quality meal choices every day and anywhere. Depending on a customer’s needs, the LSG Sky Chefs’ teams of experts engage in co-creation workshops to identify specific needs and opportunities, carry out benchmarking studies and jointly develop creative concepts that are “on brand.”

Today’s catering requirements also include hybrid concepts and all-encompassing onboard retail programs paired with inflight- entertainment options. A successful onboard retail offering is one that provides passengers with the right product mix, resulting in increased customer satisfaction and improved brand perception.

Through its Retail inMotion and Media inMotion subsidiaries, the LSG Group is focusing on the increasingly important onboard retail business, which drives airlines’ ancillary revenues and reduces inflight costs. Retail inMotion’s expertise includes the procurement and distribution of buy-on-board products, complete management of buy-on-board programs and end-to-end IT support of those programs through proprietary software. Media inMotion’s portfolio includes hardware and software solutions for Inflight Retailment Systems, which offer much more variety and choice than traditional Inflight Entertainment Systems. These systems also integrate onboard shopping capabilities, thus providing an additional sales channel to passengers, as well as broadening the variety of products and services offered for sale onboard.

CATERING SERVICES

66,000

591Million

Meals per hour

in Total

2ONBOARD RETAIL

A rich portfolio that continues to evolve

PRODUCTS AND SERVICES

66,000

591Million

1 2


SkylogistiX is a joint venture between the LSG Group and Kuehne + Nagel, one of the world’s leading logistics providers. The combination of Kuehne + Nagel's logistics excellence and LSG’s expertise in equipment management provides customers a comprehensive operational experience. It addresses an area of airline operations that has often been and is still overlooked: creating transparency in materials management.

SkylogistiX offers outsourcing and logistics expertise for the supply chain management of inflight-catering equipment, supported by state-of-the-art, custom-designed IT systems. The aim is to integrate and optimize all elements of the supply chain to minimize total cost without compromising service levels.

Services include forecasting (demand and order management), transport management by using worldwide logistics networks and warehousing (stock management, inbound quality checks, re-stocking and re-packing of returned deliveries).

The LSG Group has historically been active in the lounge catering and services business because of the many characteristics it shares with onboard services. Lounge services are the extension of a passenger’s travel experience, pre- and post-flight, and represent an additional touch point.

The lounge portfolio features various modules ranging from food and beverage to service, uniforms and equipment. As a one-stop-shop, it delivers a seamless brand experience for passengers and a more efficiently-handled area for the airline or train operator.

SCIS Air Security is recognized in the U.S. as the leader in airline-catering security. As customer requirements have evolved, the company has expanded its range of products and services to include airport operations area, aircraft and cargo security, personnel screening, inflight entertainment and point-of-sales solutions, duty-free and cash-management services.

The Ringeltaube shops can be found at major German airports, offering a huge variety of beverages, perfumes, cosmetics, travel accessories and gourmet food exclusively to airport and airline employees.

The LSG Group has developed an extensive line of products that can complement or replace traditional catering solutions, as well as onboard retail programs:

Frozen meals: The company operates frozen-food production units in China, Germany and the U.S. The offering includes more than 900 different dishes representing 100 ethnic varieties. Customers benefit from increased flexibility in terms of availability, high consistency and efficiencies through high-volume production.

The LSG Group has also created a wide choice of meal-box solutions through a combination of ownership and shareholding in Oakfield Farms Solutions in the U.S. and Europe. The packaging design and assortment of nutritional snacks and meal components can be individually tailored to the customer’s needs and brand values. Meal boxes are marketed to airlines, train operators and bus companies.

The LSG Group’s equipment brand, SPIRIANT, is a leading global provider of innovative onboard equipment that meets the specific operational needs of airlines and train operators while contributing to building unique brand stories. This proves that equipment is a crucial component in turning food into an experience. SPIRIANT’s claim, “Where inspiration meets performance,” reflects this fact.

SPIRIANT has the insight and knowledge necessary to source, design and deliver a variety of product concepts that can meet both inspirational and functional requirements, such as weight, environmental compliance and ergonomics. That includes meal-service equipment (trays, cutlery and tableware), comfort items (linens and amenities) and galley equipment (trolleys/carts and drawers). Green thinking and quality aspects are decisive factors throughout the entire process of creating and delivering tailor-made concepts and products. SPIRIANT products have consistently earned prestigious awards in international design competitions.

5EQUIPMENT LOGISTICS3FOOD

SOLUTIONS 4EQUIPMENTSOURCING & DESIGN/DEVELOPMENT

6LOUNGE SERVICES

7SECURITY SERVICES

8RETAIL SHOPS

MEET CUSTOMER NEEDS EVERY TIME AND EVERYWHERE.

3 4 5

6

7

8

EVERY TIME EVERYWHERE.


20152015 Air China Best Catering Award | Frankfurt, Germany2015 Hainan Airlines Outstanding Catering Company | Berlin, Germany2015 QSAI Platinum Award for Best Worldwide Airline Catering Facility | Munich, Germany2015 QSAI Award of Excellence for Europe, Middle East & Africa “Gold Medal” | Munich, Germany2015 QSAI Award of Excellence for the Americas “Silver Medal” | Buenos Aires, Argentina

Seoul Aviation Authority Ramp Safety/Security Award | Seoul, South KoreaPhilippine Airlines’ Mabuhay Award for Best Airline Caterer in USA, Canada, Australia, and Europe | Toronto, Canada LH Group Innovator Award in “Dare to Try” Category for “Fully Automatic Sandwich Production” | Cologne, Germany

Oman Air Certificate of Appreciation | Kathmandu, NepalCondor Appreciation of Outstanding Performance | Vancouver, CanadaAlitalia Best Cuisine At Global Traveler Awards 2015, Magnifica Class | Rome, Italy

Red Dot Award 2015 for Lufthansa Premium Economy Class Tableware | SPIRIANTVirgin America “Caterer of the Year” | Dallas, USA

20142014 United Airlines Silver Award in the Premium International Category | Milan, Italy

2014 Cathay Pacific “Outstanding Performance and Service Excellence” | Johannesburg, South Africa 2014 QSAI Platinum Award for Best Worldwide Airline Catering Facility | Munich, Germany2014 QSAI Award of Excellence for Europe, Middle East & Africa “Gold Medal” | Munich, Germany2014 QSAI Award of Excellence for the Americas “Gold Medal” | Buenos Aires, Argentina2014 QSAI Award of Excellence for the Americas “Silver Medal” | Bonaire, Netherlands Antilles Delta “Caterer of the Year” as Best Small Kitchen (<500 flights/month) | Anchorage, USADelta “Caterer of the Year” as Best Medium Kitchen (> 501-999 flights/month) | Mexico City, MexicoGood Design Award 2014 for Lufthansa Premium Economy Class Tableware | SPIRIANTKLM Catering Performance Award 2014 for Africa | Cape Town, South AfricaKLM Catering Performance Award 2014 for Americas | Buenos Aires, ArgentinaOman Air Certificate of Appreciation for Consistent Performance 2014 | Kathmandu, NepalQatar Airways Catering Performance Award 2014 “Account Manager 2014” | Alpha LSG Ltd, London Heathrow, UK

Qatar Airways Catering Performance Award 2014 “Best Indian sub-continent Caterer” | Bangalore, IndiaSingapore Airline Excellence Award 2014 | Munich, GermanyTravel Plus Gold Winner for LH Children’s Pilotenkoffer Goody Bag | SPIRIANT

Travel Plus Gold Winner (Formia & SPIRIANT) for Qatar Airways Business Class Amenity Kits | SPIRIANTUS Green Building Council (USGBC) for Best of Buildings 2014 | Washington, USA

Significant revenue growth in a dynamic market environmentREVENUES AND EARNINGSIn fiscal year 2015, demand for airline catering services and profit-yielding retail programs experienced an upswing, although with regional differences. Despite operating in an industry as competitive as the airline business, the LSG Group has managed to improve its performance in terms of increased revenues and EBIT (Earnings Before Interest and Tax). This success is based on a very solid foundation built by continuously transforming the company in order to respond to and actively address consumer and customer needs.

As a result, the Group posted sales increases in virtually every market. Eastern European countries and select markets in Africa were the exception due in large part to adverse economic or political conditions. Consolidated revenues also increased significantly. Compared to the previous year, they rose by 14.8 percent (adjusted for currency-related factors: + 6.1 percent) to EUR 3,022 million in the 2015 financial year. Changes in the group of consolidated businesses contributed to a growth in sales of EUR 13 million.

The cost of materials and services rose by EUR 142 million to EUR 1,299 million. This development was mainly driven by higher volumes and exchange rates. The cost of materials ratio slightly went down to 43.0 percent compared to 43.9 percent in the previous year.

The average number of employees went up to 33,543, meaning 3.1 percent more than the year before. In total, staff costs climbed by 15.5 percent to EUR 1,113 million. This can be attributed to the increased business volume and exchange rates.

The amortization and depreciation ratio dropped to 2.6 percent, compared to the 2014 figure (3.0 percent). The nominal amount slightly rose by EUR 1 million to EUR 80 million. Other operating expenses increased by 21.3 percent to EUR 540 million on a year-to-year basis. This trend is mainly due to a higher business volume and currency-related factors.

The LSG Group achieved an EBIT of EUR 85 million in 2015, 10 million above the previous year’s figure of EUR 75 million.

The adjusted EBIT amounted to EUR 99 million (compared to EUR 88 million the previous year) and was higher than the EBIT, primarily due to extraordinary goodwill amortization and depreciation in Russia and Belgium.

Proven Excellence

LSG GROUP

Our global network delivers consistent service quality and culinary excellence worldwide. Our customers acknowledge our commitment to excellence through their loyalty and the awards they bestow upon us, such as:

21| ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ LSG GROUP | ANNUAL REVIEW 2015

One of the major pillars of the LSG Group’s unique selling proposition is its unwavering commitment to quality and food safety. Providing customers with products and services that meet and exceed their expectations is built into the company’s values.

Every aspect of the supply chain is meticulously examined, from innovation and product development to operations, costs and supplier management. All the while, passenger satisfaction is measured with an eye on where quality can be improved even more. In collaboration with its business partners and suppliers, the company continuously hones its processes and services in order to optimize efficiency and increase quality every day, everywhere.

This effort is based on the company’s Global Quality System. It ensures optimal performance and consistency in four critical areas:

Customer satisfaction On-time and safety performance Product and process quality Food safety and aviation security

The system is constantly being improved to maintain standards along the entire supply chain. It adheres to the strictest safety and performance criteria while incorporating quality assessment and feedback into the production processes.

Quality Managers and dedicated experts conduct regular inspections using the Global Quality System at all worldwide locations. To further safeguard the integrity of the company’s processes, its locations are also tested and assessed through a series of audits, some of which are conducted unannounced by external institutions, state and local authorities, customers and third-party vendors.

The company’s catering quality and food safety have earned numerous commendations from its customers and other parties, including the Medina Quality Awards. In 2015, three LSG Sky Chefs facilities in Munich, Buenos Aires and Bonaire received major recognitions, with Munich being awarded Medina’s Platinum Award for best catering facility worldwide.

Quality is the basis for sustainability and continued trustQUALITY AND FOOD SAFETY

GLOBAL QUALITY

SYSTEM

CUSTOMER SATISFACTIONON-TIME AND SAFETY PERFORMANCE

PRODUCT AND PROCESS QUALITYFOOD SAFETY AND AVIATION SECURITY

A culture of ethics, diversity and sustainability

CORPORATE SOCIAL RESPONSIBILITY

Delivering the best in quality and value to customers and shareholders should never overshadow the commitment to respon sible corporate citizenship and environmental stewardship.

From a purely business perspective, this commitment helps contain risks, nurtures employee satisfaction, strengthens customer loyalty and directly affects the bottom line. By acting responsibly on a daily basis, the company enhances its repu tation and earns the respect of the communities in which it operates while creating shared value.

Furthermore, it is important to point out that there is not a single LSG Group “face.” Its more than 34,000 employees hail from more than 100 countries and a rich mix of ethnic backgrounds. This lends a unique identity to the company and strengthens its ability to compete effectively wherever it operates. The LSG Group understands the value of this unique asset and is supportive of its eclectic workforce and broad culture.

As a result, the LSG Group is able to attract superior talent and retain more of its workforce in what is traditionally a high-turnover industry. This translates into better and more consistent results for its customers. The LSG Group upholds a set of Company Values designed to promote responsible behavior and attitudes. These are:

Respect Trust Reaching for Excellence Customer Commitment Innovation Economic Health

A corporation, however, can only be as ethical and responsible as its governance. The LSG Group corporate governance is based on the principle of transparency. Decision-making is checked against a risk-management system and internal controls to keep all processes on track. Openness and clarity also characterize its corporate communications and human resources policies.


LSG GROUP'S

WORLDWIDE PRESENCE

WE DELIVER THE TASTE OF THE WORLD TO MAKE YOUR CUSTOMERS' DAY BETTER.


LSG GROUP'S

WORLDWIDE PRESENCE


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CUN

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SLC

SMF

LAS

DFW

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DEN

MSP

BOSJFK

PIT PHL

RDU

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MCO

FLLMIA

BWI

BURONTPSP PHX

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LAXSNASAN

AUS

ORD DTWLGA

TPARSW

IAD/DCASJC

SEA

PDX

ANC

YVR

YYZ YHM

BDA

GUASAL

GCM MBJKIN

SXMANU

BGI

BOG

UIO

GYE

ANFASU

SCLEZE MVD

TABPOS

UVF

STT

PMV

GNDBON

PTY

CUR

CCS

SSA

CPQGRU

REC

NAT

FOR

BEL

GIGSDU

LAD

CPT

JNB

DUR

DAR

CAI

BJVDLM

ADB

SOF

ESB

AER

ROW

SIP

DMESVO

RIX

RYG ARN

GOT

MMX

TXLHAM

NCLMME

DSAHUY

EMA NWISTN

LGW

EDI

HAJPAD

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MUC

ZRH

MXPBGY

FCO

LIS

XZY

DTM DRS

STRBRUCRL

SXF

BLL

BRE

LBABLK

GLAPIK

BFS

DUB LPLLTNLHRCWL

BRS

BHXMAN

DUSANR LEJ

FMONRN

CPH

OSL LEDHELTLL

SAW/IST

AYT

CEKOVB

URC

DNH

LHW

CTU

DIGLJG

KTM

HYDRGN

BLR DMK

KMG

BKK

UTP

SYX

CANHKG

XIY

KHN WNZ

NKG

ICNGMP

PUS HNDNRT

SPNGUM

UAM

VVO

PVG/SHAHGH

PEK

TAO

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KJA

RAR

AKL

WLG

CHC

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NORTH AMERICA

CANADA Toronto International (YYZ)

Toronto-Hamilton (YHM) Vancouver (YVR)

UNITED STATES Anchorage (ANC)

Atlanta (ATL) Austin (AUS) Baltimore (BWI) Boston

(BOS) Burbank (BUR) Charlotte (CLT) Chicago (ORD)

Dallas (DFW) Denver (DEN) Detroit (DTW)

Fort Lauderdale (FLL) Fort Myers (RSW) Houston

(IAH) Las Vegas (LAS) Los Angeles (LAX) Miami (MIA)

Minneapolis (MSP) New York - JFK (JFK) New York - La

Guardia (LGA) Oakland (OAK) Ontario (ONT) Orlando (MCO)

Palm Springs (PSP) Philadelphia (PHL) Phoenix (PHX)

Pittsburgh (PIT) Portland (PDX) Raleigh-Durham (RDU)

Sacramento (SMF) Salt Lake City (SLC)

San Diego (SAN) San Francisco (SFO) San Jose (SJC)

Santa Ana (SNA) Seattle (SEA) Tampa (TPA)

Washington - International (IAD) Washington - National (DCA)

LATIN AMERICA ANTIGUA & BARBUDA Antigua (ANU) ARGENTINA Buenos Aires

(EZE) BARBADOS Barbados (BGI) BERMUDA (UK TERRITORY) Bermuda (BDA) BRAZIL Belém (BEL)

Campinas (CPQ) Fortaleza (FOR) Natal (NAT) Recife (REC)

Rio de Janeiro - International (GIG)

Rio de Janeiro - Santos Dumont (SDU)

Salvador (SSA) São Paulo (GRU) CAYMAN ISLANDS (UK TERRITORY) Grand

Cayman (GCM) CHILE Antofagasta (ANF)

Santiago de Chile (SCL) COLOMBIA Santa

Fe de Bogotá (BOG) ECUADOR Guayaquil (GYE)

Quito (UIO) EL SALVADOR San Salvador (SAL)

GRENADA Grenada (GND) GUATEMALA Guatemala City (GUA) HONDURAS

San Pedro Sula (SAP) JAMAICA Kingston (KIN)

Montego Bay (MBJ) MEXICO Bajio (BJX)

Cancún (CUN) Guadalajara (GDL) Mexicali (MXL)

Mexico City (MEX) Monterrey (MTY)

Puerto Vallarta (PVR) San José del Cabo (SJD) Tijuana (TIJ)

NETHERLANDS ANTILLES Bonaire (BON)

Curacao (CUR) St. Maarten (SXM) PANAMA Panama City (PTY) PARAGUAY Asunción (ASU)

ST. LUCIA St. Lucia (UVF) TRINIDAD & TOBAGO Port of Spain (POS) Tobago (TAB)

URUGUAY Montevideo (MVD) VENEZUELA Caracas (CCS) Isla Margarita (PMV) VIRGIN ISLANDS

(US TERRITORY) St. Thomas (STT)

EUROPE / MIDDLE EAST

/ AFRICA ANGOLA Luanda (LAD) BELGIUM

ANTWERP (ANR) Brussels (BRU) Charleroi

(CRL) Liege (LGG) Oostende (OST)

BULGARIA Sofia (SOF) DENMARK Billund (BLL) Copenhagen (CPH) EGYPT

Cairo (CAI) ESTONIA Tallinn (TLL)

FINLAND Helsinki (HEL) FRANCE Paris

GERMANY Alzey (XZY) Berlin - Schoenefeld

(SXF) Berlin - Tegel (TXL) Bremen (BRE) Cologne (CGN)

Dortmund (DTM) Dresden (DRS) Dusseldorf (DUS)

Frankfurt (FRA) Hamburg (HAM) Hanover (HAJ)

Leipzig (LEJ) Munich (MUC) Muenster-Osnabrueck (FMO)

Neu-Isenburg Paderborn (PAD) Stuttgart (STR)

Weeze (NRN) IRELAND Dublin (DUB)

ITALY Bergamo (BGY) Milan - Malpensa (MXP)

Rome (FCO) LATVIA Riga (RIX)

NORWAY Oslo (OSL) Rygge (RYG)

PORTUGAL Lisboa (LIS)

RUSSIA Chelyabinsk (CEK)

Krasnoyarsk (KJA)

Moscow - Sheremetyevo (SVO)

Moscow-Domodedovo (DME)

Novosibirsk (OVB) Rostov-on-Don (ROV)

Simferopol (SIP) Sochi (AER)

St. Petersburg (LED) Vladivostok (VVO)

SOUTH AFRICA Cape Town (CPT)

Durban (DUR) Johannesburg (JNB)

SWEDEN Gothenburg (GOT) Malmo (MMX) Stockholm -

Arlanda (ARN)

SWITZERLAND

Zurich (ZRH) TANZANIA Dar es Salaam (DAR)

TURKEY Ankara (ESB) Antalya (AYT)

Bodrum (BJV) Dalaman (DLM)

Istanbul - Kurtköy (SAW)

Istanbul - Sefaköy (IST) Izmir (ADB)

UNITED KINGDOM Belfast (BFS) Birmingham (BHX)

Blackpool (BLK)

Bristol (BRS) Cardiff (CWL)

Doncaster (DSA) Durham Tees

Valley (MME) East Midlands (EMA)

Edinburgh (EDI) Glasgow (GLA)

Humberside (HUY) Leeds

Bradford (LBA)

Liverpool (LPL)

London - Gatwick (LGW)

London - Heathrow (LHR)

Luton (LTN) Manchester (MAN) Newcastle (NCL) Norwich (NWI) Prestwick (PIK) Stansted (STN)

ASIA /

PACIFIC CHINA Beijing (PEK) Chengdu (CTU)

Dunhuang (DNH) Guangzhou (CAN) Hangzhou (HGH)

Hefei (HFE) Hong Kong (HKG) Kunming (KMG)

Lanzhou (LHW) Lijiang (LJG) Nanchang (KHN)

Nanjing (NKG) Qingdao (TAO) Sanya (SYX)

Shanghai - Hongqiao (SHA) Shanghai - Pudong (PVG)

Shangri-La (DIG) Urumqi (URC) Wenzhou (WNZ) Xian (XIY)

INDIA Bangalore (BLR) Hyderabad (HYD) JAPAN Tokyo - Haneda (HND) Tokyo - Narita (NRT)

MICRONESIA Guam (GUM) Andersen (UAM)

Saipan (SPN) MYANMAR Yangon (RGN)

NEPAL Kathmandu (KTM) NEW ZEALAND Auckland (AKL) Christchurch (CHC)

Queenstown (ZQN) Rarotonga (RAR) Wellington (WLG)

SOUTH KOREA Busan (PUS) Seoul - Gimpo (GMP)

Seoul - Incheon (ICN) THAILAND Bangkok - Donmuang (DMK)

Bangkok - Suvarnabhumi (BKK) Pattaya U-Tapao (UTP)

....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... LSG GROUP | ANNUAL REVIEW 2015PAGE 27 – 29

ENVIRONMENTAL SUCCESSES

REDUCTION OF WATER USAGE PER MEAL

23 %REDUCTION OF WASTE PER MEAL

REDUCTION OF ENERGY CONSUMPTION PER MEAL

33 %

45 %

The Group’s Environmental Management System serves as an important tool for optimizing regional environmental activities.

EMISSIONSLEEN 100 – SHARING IDEAS FOR MORE ENERGY EFFICIENCY AND FEWER EMISSIONS

One of the company’s Frankfurt, Germany, facilities is a member of the Learning Energy Efficiency Network (LEEN 100), a network of various industries connected to exchange best practices about how to contribute to reducing CO2 emissions in the Frankfurt area and increase the proportion of renewable energy. Based on the experience of the first 30 LEEN networks, participants on average doubled their energy efficiency compared to non-participants.

CHEMICALSCHEMICAL STORAGE IN SÃO PAULO – A GLOBAL SHOWCASE

Our global Green Assessment in 2013 and 2014 revealed that chemical-product storage in many units needed improvement. Together with Diversey, LSG Group’s worldwide partner for chemical supplies, the São Paulo, Brazil, unit developed an action plan for a chemical-product storage showcase. It included best practices for hygiene and cleaning training and led to the implementation of five rules for safe storage and chemical disposal. The aim is to implement these showcase principles at every LSG Group unit worldwide.

A systematic approach for continuous improvementENVIRONMENTAL CAREOver more than 20 years, the LSG Group has developed what today is considered the inflight service industry’s most structured and expansive approach to environmental care.

This approach permeates everything the company does to ensure widescale environmental awareness and continuous improvement throughout its worldwide organization. It is also designed to meet customer and shareholder expectations regarding environmental care.

The LSG Group’s Environmental Policy is the basis of its activities in this area and contains the mission, guidelines and key elements of its Environmental Management System. The LSG Group Environmental System Manual provides all operational units with the information they need to abide by the policy, such as clear definitions of the key performance indicators (KPIs) for energy, water and waste and the standard procedures for an environmental assessment. It serves as an important tool for optimizing regional environmental activities.

Best-Practice Examples Knowledge-sharing invariably has a positive effect on an organization. The company’s best-practice intranet site fosters the exchange of knowledge between the regions and promotes constant improvement throughout the LSG Group.

ENERGYSENSORS REDUCE ELECTRICITY CONSUMPTION IN REFRIGERATION UNITS

The company ran several pilot tests with eTemp®, a thermostat that helps refrigeration units operate more efficiently. Unlike traditional thermostats, eTemp does not respond to minor temperature fluctuations and only registers significant changes. In 2014/2015, it was installed in 38 customer service centers, leading to savings of 547,558 kWh and reductions in carbon dioxide emissions amounting to 437 tons. According to the EPA (the U.S. Environmental Protection Agency), these energy savings are the equivalent of planting 80.6 acres of pine forest every year.

WASTETURNING ORGANIC WASTE INTO WATER

In North America, the company implemented new technology to convert organic waste into water. The technology, developed by EnviroPure, is a self-contained, aerobic food-waste decomposition system that eliminates it on-site. EnviroPure can handle virtually any kind of food waste, including vegetables, fruit, meat, fish, poultry, dairy products, bones, shells and pits, with decomposition occurring within 24 to 48 hours. The technology also eliminates odors and does not require sanitation, vermin or insect-control measures. The carbon dioxide generated from the system is biogenic, so it does not contribute to greenhouse gases and global warming. Between January 2014 and July 2015, the system diverted 424 tons of organic waste from landfill at the first two participating CSCs.

....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... LSG GROUP | ANNUAL REVIEW 2015

45%

33 %

Environmental Management System important tool regional environmental activities.

23 %REDUCTION REDUCTION

REDUCTION

Consolidation within the industry will continue, both from a customer and a competitor perspective. Consequently, cost and price pressures will keep dominating the market environment.

For fiscal year 2016, the LSG Group expects revenues and an adjusted EBIT slightly above the previous year’s level. The result will be burdened by one-time expenses related to the transformation of the business model, particularly in Europe and North America. The programs that have already been initiated in order to improve performance and seek expansion into adjacent markets will be pursued further.


GROUP FINANCIAL INFORMATION

2015

k €2015

k €2014*

k €

Revenue 3,022,006 2,633,307

Other operating income (including changes in inventories) 73,158 73,702

Total operating income 3,095,164 2,707,009

Cost of materials and services -1,298,715 -1,156,448

Staff costs -1,112,851 -964,192

Depreciation and amortization -80,081 -78,608

Other operating expenses -539,917 -444,731

Total operating expenses -3,031,564 -2,643,979

Profit/loss from operating activities 63,600 63,030

Investment Result 21,802 12,148

EBIT 85,402 75,178

Adjusted EBIT 98,925 87,508

For the financial year 2015

CONSOLIDATED INCOME STATEMENT

*Previous year’s figures have been adjusted due to the new Lufthansa reporting method


EXECUTIVE BOARD RESPONSIBILITIES

Erdmann RauerChief Executive Officer

Dr. Kristin NeumannChief Financial Officer/Labor Director

Jochen MüllerChief Operating Officer

Corporate Functions

Communications Accounting, Controlling and Risk Management Culinary Excellence

Internal Audit Human Resources Operational Excellence

Legal, Corporate Affairs and Compliance

Information and Process Management

Sales, Product and Marketing

Mergers & Acquisitions and Subsidiaries

Strategy and Business Development

Product Engeneering, Procurement & Supply Chain

Treasury

Regions, Divisions

Retail Outlets (Ringeltaube) Asia / Pacific

Eastern Europe/ Middle East/Africa

Europe

Latin America

North America

Air Security

Lounges

SPIRIANT

KEY FIGURES

Key Figures 2015 2014 2013 2012 2011

Revenues (EUR m) 3,022 2,633 2,514 2,503 2,299

Operating result (EUR m) 1) 78 100 105 1012) 85

EBIT4) 85 75 107 - -

Employees as of Dec. 31 34,310 32,843 32,307 30,088 29,586

Company Data 2015

Meals produced 591 million

Customer Service Centers 201

Airports served 211

Countries 50

Companies comprised 155

Customers more than 300

Corporate Headquarters Neu-Isenburg (Frankfurt), Germany

Executive Board Erdmann Rauer, Chief Executive OfficerDr. Kristin Neumann, Chief Financial OfficerJochen Müller, Chief Operating Officer

Supervisory Board Simone Menne (Chairman), Prof. Dr. Ingrid Göpfert, Dr. Reinhold Huber, Dirk Reich, Axel Tillman, Dr. Bettina Volkens, Gerold Schaub 3) (Deputy), Frauke Bendokat 3), Mathias Kilzer 3), Paul Laslop 3), Michael Rüschenbaum 3), Christina Weber 3)

Core-business activities Catering and Onboard RetailInflight-Equipment Sourcing and DesignInflight-Equipment LogisticsAirport Services

Adjacent-market activities Convenience RetailTrain ServicesInstitutional Catering

1 ) Result from operating activities minus book profits (and losses), write-backs of provisions, currency gains and losses on valuation at the balance sheet date of long-term financial liabilities, and other periodic expenses and income 2 ) 2012 numbers are restated due to a change in IFRS accounting standards in connection with employee benefits 3 ) Employee Representative

4 ) Due to the new Lufthansa reporting method, future earnings will be reported as EBIT.

WE DELIVER

THE TASTE

OF THE WORLD

TO MAKE

YOUR

CUSTOMERS'

DAY

BETTER.

WE DELIVER

THE TASTE

OF THE WORLD

TO MAKE

YOUR

CUSTOMERS'

DAY

BETTER.

contents - lsg sky chefs€¦ · contents 02 letter from the executive board 04 lsg group – our...

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