Read our Annual Review 2015.

Transcription

CONTENTS
02
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.
LETTER FROM THE EXECUTIVE BOARD
DEAR READER,
yours
sincerely,
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.
Erdmann Rauer
CHIEF EXECUTIVE OFFICER
Jochen Müller
CHIEF OPERATING OFFICER
Dr. Kristin Neumann
CHIEF FINANCIAL OFFICER
We look forward to continue working with you and defining mutually beneficial opportunities. We would also like to thank you for your continued trust in our company.
PAGE 02 | 03 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ LSG GROUP | ANNUAL REVIEW 2015
LSG GROUP – OUR INTEGRATED APPROACH
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 sucessfully enter adjacent markets, like train
services and convenience retail.
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 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:
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
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
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
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
QSAI
AWARDS
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.
TAMPA
OPENING
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).
SANTIAGO
OPENING
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.
GOOD
DESIGN
AWARD
SPIRIANT wins the GOOD DESIGN
Award 2014-2015 for their work
designing the Lufthansa Premium
Economy Class tableware.
NEW
ZEALAND
OPENING
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.
STARBUCKS
CONTRACT
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.
WTCE
INTEGRATED
PORTFOLIO
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.
RED
DOT
AWARD
SPIRIANT receives the highly esteemed
Red Dot Award for the Lufthansa
Premium Economy Class tableware.
CIRCLE K
BUSINESS
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.
JFK
LOUNGES
The LSG Sky Chefs Lounge Team
takes over the management of the
Lufthansa lounges at New York’s
John F. Kennedy Airport.
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
The company’s concession and
license agreement at Yangon
Mingaladon Airport (RGN), Myanmar,
is extended by 10 years.
GODDARD
JOINT
VENTURE
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.
DEUTSCHE
BAHN
COOPERATION
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.
CHICAGO
OPENING
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.
RiM
& MiM
LSG Group acquires the remaining
shares in Retail inMotion and
full ownership of Media inMotion.
The deal was closed in early 2016.
MARKETS AND COMPETITION
Transformation 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 competitors. 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 lowcost 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 highend 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 companywide 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.
LONG-HAUL AIRLINES
YOUR CHOICE AIRLINES
HYBRID AIRLINES
LOW-COST AIRLINES
BUSINESS AND STRATEGY
The LSG Group continues to expand and diversify while its business model undergoes transformation
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 onboardretail programs in close cooperation with its subsidiaries Retail
inMotion and SCIS Air Security.
The Group is increasingly addressing
new customer segments in markets that are adjacent to its core competencies.
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.
ENHANCE SERVICES
ANALYZING CONSUMER NEEDS CULINARY EXCELLENCE
CHANGING
REQUIREMENTS
GROWTH STRATEGY
dynamic market
ADDRESSING NEW
CUSTOMER SEGMENTS
highly competitive environment
SALES AND CUSTOMERS
PARTNERSHIPS AND JOINT VENTURES
Over the past several years, the
LSG Group has widened its customer
base significantly by entering into
new adjacent markets.
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:
A strong retention rate and new business boosted revenues
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.
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.
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.
Where global expertise meets local market know-how
Russia: Aeromar, the 51/49 joint venture with Russian
carrier Aeroflot was established in 1989 at MoscowSheremetyevo 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.
AS
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, SeoulGimpo 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.
NG
DI
IN
N
PA
EX
G
IN
W
RO
G
E
CR
IN
NG
SI
RI
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: LondonHeathrow, London-Gatwick, London-Stansted, Birmingham,
Manchester, Glasgow, Edinburgh, East Midlands, Newcastle,
Bristol, Cardiff, Doncaster, Luton, Prestwick, Leeds-Bradford,
Aberdeen and Belfast.
G
66,000
Meals per hour
591Million
in Total
PRODUCTS AND SERVICES
A rich portfolio that continues to evolve
The 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:
1
CATERING
SERVICES
2
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.”
ONBOARD
RETAIL
Today’s catering requirements also include hybrid concepts and
all-encompassing onboard retail programs paired with inflightentertainment 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-toend 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.
6
LOUNGE
SERVICES
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.
MEET CUSTOMER NEEDS
EVERY TIME AND EVERYWHERE .
3
FOOD
SOLUTIONS
The LSG Group has developed an extensive line of products
that can complement or replace traditional catering solutions,
as well as onboard retail programs:
4
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.
EQUIPMENTSOURCING &
DESIGN/DEVELOPMENT
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.
5
EQUIPMENT
LOGISTICS
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.
7
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 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.
SECURITY
SERVICES
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 pointof-sales solutions, duty-free and cash-management services.
8
RETAIL
SHOPS
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.
REVENUES AND EARNINGS
LSG GROUP
Proven Excellence
Significant revenue growth in a dynamic market environment
In 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.
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:
2015
2015 Air China Best Catering Award | Frankfurt, Germany
2015 Hainan Airlines Outstanding Catering Company | Berlin, Germany
2015 QSAI Platinum Award for Best Worldwide Airline Catering Facility | Munich, Germany
2015 QSAI Award of Excellence for Europe, Middle East & Africa “Gold Medal” | Munich, Germany
2015 QSAI Award of Excellence for the Americas “Silver Medal” | Buenos Aires, Argentina
Seoul Aviation Authority Ramp Safety/Security Award | Seoul, South Korea
Philippine 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, Nepal
Condor Appreciation of Outstanding Performance | Vancouver, Canada
Alitalia Best Cuisine At Global Traveler Awards 2015, Magnifica Class | Rome, Italy
Red Dot Award 2015 for Lufthansa Premium Economy Class Tableware | SPIRIANT
Virgin America “Caterer of the Year” | Dallas, USA
2014
2014 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, Germany
2014 QSAI Award of Excellence for Europe, Middle East & Africa “Gold Medal” | Munich, Germany
2014 QSAI Award of Excellence for the Americas “Gold Medal” | Buenos Aires, Argentina
2014 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, USA
Delta “Caterer of the Year” as Best Medium Kitchen (> 501-999 flights/month) | Mexico City, Mexico
Good Design Award 2014 for Lufthansa Premium Economy Class Tableware | SPIRIANT
KLM Catering Performance Award 2014 for Africa | Cape Town, South Africa
KLM Catering Performance Award 2014 for Americas | Buenos Aires, Argentina
Oman Air Certificate of Appreciation for Consistent Performance 2014 | Kathmandu, Nepal
Qatar 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, India
Singapore Airline Excellence Award 2014 | Munich, Germany
Travel Plus Gold Winner for LH Children’s Pilotenkoffer Goody Bag | SPIRIANT
Travel Plus Gold Winner (Formia & SPIRIANT) for Qatar Airways Business Class Amenity Kits | SPIRIANT
US Green Building Council (USGBC) for Best of Buildings 2014 | Washington, USA
QUALITY AND FOOD SAFETY
Quality is the basis for sustainability and continued trust
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.
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.
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
GLOBAL
QUALITY
SYSTEM
CORPORATE SOCIAL RESPONSIBILITY
A culture of ethics, diversity and sustainability
Delivering the best in quality and value
to customers and shareholders should
never overshadow the commitment to
responsible 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 reputation 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.
CUSTOMER SATISFACTION
ON-TIME AND SAFETY PERFORMANCE
PRODUCT AND PROCESS QUALITY
FOOD SAFETY AND AVIATION SECURITY
WE
DELIVER
THE TASTE
OF THE WORLD
TO MAKE
YOUR
CUSTOMERS'
DAY
BETTER.
LSG
GROUP'S
WORLDWIDE
PRESENCE
ANC
OSL
RYG
EUROPE /
MIDDLE EAST
/ AFRICA
ANGOLA
YVR
NORTH
AMERICA
CANADA
YYZ
ORD
SLC
Toronto International (YYZ)
Toronto-Hamilton (YHM) Vancouver (YVR)
UNITED STATES
MSP
SFO
SJC
Anchorage (ANC)
Atlanta (ATL) Austin (AUS) Baltimore (BWI) Boston
Dallas (DFW) Denver (DEN) Detroit (DTW)
BOS
JFK
LGA
PHL
LAS
Luanda (LAD) BELGIUM
(SXF) Berlin - Tegel (TXL) Bremen (BRE) Cologne (CGN)
CLT
DFW
PHX
Fort Lauderdale (FLL) Fort Myers (RSW) Houston
(IAH) Las Vegas (LAS) Los Angeles (LAX) Miami (MIA)
MTY
Minneapolis (MSP) New York - JFK (JFK) New York - La
PVR
Palm Springs (PSP) Philadelphia (PHL) Phoenix (PHX)
BJX
GDL
FLL
MIA
CUN
STT
Sacramento (SMF) Salt Lake City (SLC)
CUR
Santa Ana (SNA) Seattle (SEA) Tampa (TPA)
Washington - International (IAD) Washington - National (DCA)
CCS
PTY
LATIN AMERICA
ANTIGUA
& BARBUDA Antigua (ANU) ARGENTINA Buenos Aires
(EZE) BARBADOS Barbados (BGI) BERMUDA (UK
TERRITORY) Bermuda (BDA) BRAZIL Belém (BEL)
BON
UVF
DLM
DNH
GND
PMV
TAB
POS
Shangri-La (DIG) Urumqi (URC) Wenzhou (WNZ) Xian (XIY)
INDIA Bangalore (BLR)
PEK
AYT
TAO
LHW
KTM
IRELAND Dublin (DUB)
HGH
KHN
DIG
LJG
KMG
HYD
BLR
Novosibirsk (OVB) Rostov-on-Don (ROV)
NKG
HFE
CTU
CAI
CAN
HKG
PVG/SHA
WNZ
Hyderabad (HYD) JAPAN
Tokyo - Haneda (HND) Tokyo - Narita (NRT)
GMP
ICN
PUS
MICRONESIA Guam (GUM) Andersen (UAM)
MYANMAR Yangon (RGN)
NEPAL Kathmandu (KTM) NEW
ZEALAND Auckland (AKL) Christchurch (CHC)
NRT
HND
Saipan (SPN)
XIY
Moscow-Domodedovo (DME)
BGI
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)
SYX
RGN
DMK
SPN
BKK
GUM
UTP
Simferopol (SIP) Sochi (AER)
UAM
St. Petersburg (LED) Vladivostok (VVO)
SOUTH AFRICA Cape Town (CPT)
BOG
Durban (DUR) Johannesburg (JNB)
UIO
SWEDEN Gothenburg (GOT) Malmo (MMX) Stockholm -
BEL
GYE
NAT
Rio de Janeiro - International (GIG)
REC
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)
Bonaire (BON)
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)
Arlanda (ARN)
FOR
Rio de Janeiro - Santos Dumont (SDU)
Curacao (CUR) St. Maarten (SXM)
ESB
Krasnoyarsk (KJA)
Campinas (CPQ) Fortaleza (FOR) Natal (NAT) Recife (REC)
NETHERLANDS ANTILLES
VVO
SAW/IST
ADB
BJV
Shanghai - Hongqiao (SHA) Shanghai - Pudong (PVG)
URC
Moscow - Sheremetyevo (SVO)
GUA
SAL
San Diego (SAN) San Francisco (SFO) San Jose (SJC)
SXM
ANU
MBJ
KIN
GCM
MEX
Pittsburgh (PIT) Portland (PDX) Raleigh-Durham (RDU)
AER
SOF
FCO
ITALY Bergamo (BGY) Milan - Malpensa (MXP)
Rome (FCO) LATVIA Riga (RIX)
NORWAY Oslo (OSL) Rygge (RYG)
PORTUGAL Lisboa (LIS)
RUSSIA Chelyabinsk (CEK)
MCO
SJD
Guardia (LGA) Oakland (OAK) Ontario (ONT) Orlando (MCO)
Nanjing (NKG) Qingdao (TAO) Sanya (SYX)
SIP
Neu-Isenburg Paderborn (PAD) Stuttgart (STR)
Weeze (NRN)
TPA
RSW
Hefei (HFE) Hong Kong (HKG) Kunming (KMG)
Lanzhou (LHW) Lijiang (LJG) Nanchang (KHN)
ROW
ZRH
Leipzig (LEJ) Munich (MUC) Muenster-Osnabrueck (FMO)
BDA
IAH
BGY
MXP
ASIA /
PACIFIC
OVB
CEK
CHINA Beijing (PEK) Chengdu (CTU)
Frankfurt (FRA) Hamburg (HAM) Hanover (HAJ)
ATL
AUS
SVO
DME
Dunhuang (DNH) Guangzhou (CAN) Hangzhou (HGH)
LIS
Dortmund (DTM) Dresden (DRS) Dusseldorf (DUS)
RDU
EDI
CPH
BLL
NCL
MMX
MME
LBA
DSA
BLK
HUY
MAN
HAM
BRE
EMA
DUB LPL
TXL
NWI
HAJ
FMO
BHX
STN NRN
SXF
LTN
PAD
CWL
LHR
DTM
ANR DUS
DRS
BRS
LGW OST CGN LEJ
LGG FRA
BRU
XZY
CRL
STR
MUC
PIK
GLA
BULGARIA Sofia (SOF) DENMARK
Billund (BLL) Copenhagen (CPH) EGYPT
Cairo (CAI) ESTONIA Tallinn (TLL)
FINLAND Helsinki (HEL) FRANCE Paris
GERMANY Alzey (XZY) Berlin - Schoenefeld
IAD/DCA
BUR
LAX
ONT
SNA
PSP
SAN
MXL
TIJ
(BOS) Burbank (BUR) Charlotte (CLT) Chicago (ORD)
PIT
BWI
DEN
SMF
OAK
YHM
DTW
KJA
RIX
BFS
(CRL) Liege (LGG) Oostende (OST)
PDX
LED
TLL
GOT
ANTWERP (ANR) Brussels (BRU) Charleroi
SEA
HEL
ARN
SSA
SWITZERLAND
Zurich (ZRH) TANZANIA Dar es Salaam (DAR)
TURKEY Ankara (ESB) Antalya (AYT)
DAR
LAD
Bodrum (BJV) Dalaman (DLM)
Istanbul - Kurtköy (SAW)
Istanbul - Sefaköy (IST) Izmir (ADB)
UNITED KINGDOM
Belfast (BFS) Birmingham (BHX)
ANF
ASU
CPQ
GRU
GIG
SDU
RAR
Blackpool (BLK)
Bristol (BRS) Cardiff (CWL)
JNB
Doncaster (DSA) Durham Tees
Valley (MME) East Midlands (EMA)
DUR
Edinburgh (EDI) Glasgow (GLA)
SCL
EZE
MVD
Humberside (HUY) Leeds
CPT
Bradford (LBA)
AKL
Liverpool (LPL)
London - Gatwick (LGW)
WLG
London - Heathrow (LHR)
Luton (LTN) Manchester (MAN) Newcastle (NCL) Norwich (NWI) Prestwick (PIK) Stansted (STN)
CHC
ZQN
ENVIRONMENTAL CARE
A systematic approach for continuous improvement
Over 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.
PAGE 27 – 29
The Group’s Environmental Management
System serves as an important tool for optimizing
regional environmental activities.
ENERGY
REDUCTION
SENSORS 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.
WASTE
TURNING 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.
ENVIRONMENTAL
SUCCESSES
ENERGY
CONSUMPTION
PER MEAL
OF
EMISSIONS
LEEN 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.
CHEMICALS
CHEMICAL 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.
23 %
23 %
REDUCTION
OF
WASTE PER MEAL
33 %
33
%
REDUCTION
OF
WATER USAGE
PER MEAL
45 %
45%
.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
......................................................................................................................................................................................................................................................................................................................
LSG GROUP | ANNUAL REVIEW 2015
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.
CONSOLIDATED INCOME STATEMENT
For the financial year 2015
GROUP FINANCIAL
INFORMATION
2015
k€
Revenue
Other operating income (including changes in inventories)
2015
k€
2014*
k€
3,022,006
2,633,307
73,158
Total operating income
73,702
3,095,164
2,707,009
Cost of materials and services
-1,298,715
-1,156,448
Staff costs
-1,112,851
-964,192
-80,081
-78,608
-539,917
-444,731
Depreciation and amortization
Other operating expenses
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
Previous year’s figures have been adjusted due to the new Lufthansa reporting method
*
EXECUTIVE BOARD RESPONSIBILITIES
Erdmann Rauer
Chief Executive Officer
Corporate
Functions
Dr. Kristin Neumann
Chief Financial Officer/Labor Director
Jochen Müller
Chief Operating Officer
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
Retail Outlets (Ringeltaube)
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
-
-
34,310
32,843
32,307
30,088
29,586
Employees as of Dec. 31
Company Data 2015
Treasury
Regions,
Divisions
KEY FIGURES
Asia / Pacific
Eastern Europe/
Middle East/Africa
Europe
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 Officer
Dr. Kristin Neumann, Chief Financial Officer
Jochen 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 Retail
Inflight-Equipment Sourcing and Design
Inflight-Equipment Logistics
Airport Services
Adjacent-market activities
Convenience Retail
Train Services
Institutional Catering
Latin America
North America
Air Security
Lounges
SPIRIANT
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.
1) PAGE 34 | 35 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ LSG GROUP | ANNUAL REVIEW 2015
R
D
E
E
E
L
T
W LIV AS OR
E
D ET EW
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T F TH KE
'
A
S
O M
R
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T U OM
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Y ST
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C Y R.
A
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D TT
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B
LSG Group | Corporate Communications | Dornhofstraße 38 | 63263 Neu-Isenburg | Germany
Phone +49 (0)6102 240-880 | Fax +49 (0)6102 240-885 | info@lsg-group.com | www.lsg-group.com

Read our Annual Review 2015.

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