Lsgskychefs annualreview 2013 pdf by LSG Lufthansa Service Holding AG

CONTENTS 02 Letter from the Executive Board

20 Quality and Food Safety

04 Business and Strategy

22 Corporate Social Responsibility

06 Markets and Competition

23 Environmental Management

08 Sales and Customers

24 Environmental Successes

09 Partnerships and Joint Ventures

25 Outlook

10 Products and Services

26 Worldwide Presence

13 Case Study: Germanwings

financial statements 28 GLSG roup Lufthansa service holding AG 2013

14 Revenues and Earnings

29 Consolidated Income Statement

16 Case Study: Retail

30 Consolidated Balance Sheet

17 Retail and Train Customers

32 Executive Board Responsibilities

18 Awards

33 Key Figures

Letter from the Executive Board

DEAR READER, The year 2013 was very positive for our company, within a generally good economic climate. We certainly benefited from the increase in air traffic, and were able to augment our revenues in every one of our regions, even in the mature markets of Europe and North America. In addition to this great success in our core business, we expanded our reach in the areas of equipment, lounges and in selected adjacent markets. All of these developments have culminated in the fact that we have improved our operating result year after year for the last five. We have been able to maintain our leading market position in the mature airline catering markets of North America and Europe, while our growth regions in Latin America, Asia/Pacific and the Emerging Markets solidified important customer relationships and grew their presence. Meanwhile, we expanded in adjacent businesses with the right potential. Looking ahead, we are confident that we are well prepared for the future. We have built a very solid and sustainable foundation, both from an operational and financial perspective. And we will stay open to new partnerships. At the same time, we are aware that being creative, innovative and flexible will be more necessary than ever if we are to stay on the leading edge of our business and succeed in the impressive number of projects we have in the pipeline. All of us look forward to continue working with you and taking our company to the next level of excellence. We would also like to thank you for your trust, which has helped us to remain the top player in our core business, while tackling new ventures to achieve the profitable growth we aim for in our Mission. All in all, LSG Sky Chefs has never been in a better position than it is today.

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Yours sincerely,

Walter Gehl

Jens Theuerkorn

Erdmann Rauer

Jochen M端ller

............................................................................................................................................................................................. LSG SKY CHEFS | annual review 2013

Business and Strategy A strong focus on growth and customer value

105 101

3 201 2

201

1 201 010

Operating result (Millions/â&#x201A;Ź)

9 200

In 2013, LSG Sky Chefs again held on to its leading position in airline catering with a share of almost 30 percent of the global market. In addition to its airline catering activities, the company has also significantly expanded its products and services offering for airlines over recent years, based on its culinary excellence and logistics core competencies. This strategic portfolio expansion has increased value for existing and future airline customers. Moreover, other potential customer segments in a number of adjacent markets, namely train operators, school and university canteens and retail store chains, are also being targeted in order to compensate for the cyclicality of the airline business. With 210 catering operations in 54 countries, LSG Sky Chefs has the largest network in the industry. The company is present at almost all important airports in its home markets of Germany and the United States. And it is further expanding its presence in the growing regions of Latin America, Asia/ Pacific, Africa and Eastern Europe through partnerships and management agreements with local companies. As of the end of 2013, the LSG Sky Chefs Group is made up of 156 companies and supplies its customers at 213 airports. The Group's parent company is LSG Lufthansa Service Holding AG, based in Neu-Isenburg, Germany.

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g n i t tra

n e c n o c is ion s s f e s nitie h n a C p u y t x r k e o S olio pp G LSportf o on

LSG Sky Chefs is focused on profitable growth and generating customer value. Consequently, the company is concentrating on exploiting geographical and portfolio expansion opportunities, while continuously improving its processes and rigidly controlling its cost structures. A four-member Executive Board is responsible for managing the company. The airline catering activities are directed by six regional management teams with responsibility for North America, Latin America, Germany, Europe, Asia/Pacific and the Emerging Markets. This structure facilitates the targeted management necessary to respond to diverse customer requirements based on market maturity, growth rates and the potential for expansion or need for restructuring. Additional services for airline customers, such as equipment management, logistics and the operation of lounges, are handled by legally-independent competence centers. Activities in the adjacent markets are driven by regional competence centers. The retail business has significantly grown in the U.S. over the past few years and is being developed in other markets with potential, such as South America, Asia and South Africa. The train business is largely concentrated in Europe, but the team supports business opportunities in other parts of the world.

Expansion and growth in the core airline catering business is being promoted by entering emerging markets and solidifying business relationships with growing airlines using an increasingly diverse product range. Further growth is being generated by establishing a more visible presence in the adjacent markets. Cost control reaches all levels and divisions of the company. It is exerted by continually reviewing and standardizing processes, reducing material costs using volume bundling and modern supplier management, adding flexibility to labor costs and introducing new business models to boost customer value. All of these measures are also increasing global data transparency, thereby creating a solid base for sound, balanced managerial decisions.

Markets and Competition Market leadership through geographic and portfolio expansion

LSG Sky Chefs expects that passenger volumes will continue to climb, albeit with regional fluctuations. As it has been the case in previous years, low-cost and charter airlines will account for a disproportionate share of this growth. The company is forecasting that market volume will increase in conventional airline catering. This is due to the fact that airlines are unlikely to further cut back their in-flight service concepts for competitive reasons, and because they will still be seen as a differentiator in growth regions. However, smart and complex in-flight retail/Buy-on-Board programs are becoming increasingly prevalent. These programs offer passengers attractive options to customize their in-flight service ahead of their flights. Additionally, they provide entertainment and information choices for passengers, while also producing ancillary revenues for the airlines. For the in-flight service providers, the challenges are manifold: What used to be a uniform catering business model less than a decade ago, has splintered into a variety of models that range from high-end, sophisticated and individual first-class catering via intelligent pre-ordered menu choices to innovative shelf-stable mealbox solutions.

In 2013, the company established two strategic cornerstones in its efforts to grow with those new business models and additional services for airline customers. First, it entered into a new joint venture with Dublin-based technology and retail provider Retail inMotion. Within the framework of the agreement, the partners will offer end-to-end in-flight retail management solutions. Second, it launched SPIRIANT, a new independent brand for its in-flight service equipment business, covering the design, development and sourcing of in-flight equipment, such as meal service and comfort items, galley equipment and commodities. The global LSG Sky Chefs network includes a large number of its own customer service centers (CSCs), as well as extensive joint ventures with airlines, airport operators and local companies, especially in Latin America, China, Russia and Africa. There is only one other competitor with a global presence, apart from a limited number of local and regional airline catering providers. In general, the industry is consolidating. New market participants from the logistics sector are increasingly offering services for the Buy-on-Board programs of low-cost carriers and the less complex onboard service required on short-haul routes and in economy class, where the freshness and culinary sophistication of the food are not a priority. According to its own figures, LSG Sky Chefs has a share of around 40 percent in both the American and European markets. Over a period of more than 20 years, it has also established a leading market position in Asia, Eastern Europe and Africa by continuously expanding its presence, primarily in fast-growing hubs.

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Innovative Products and Services

G lobal reach

Increasing Customer value

L E A D E R S H IP

Industry-leading Customer Service

In the course of the year, the composition of the company's network was altered again as a result of the closure of various operations and entry into new markets:

rich diversity

Profitable Growth

S t r o n g New C o m pa n y Business va l u e s Models

In Germany, the operations in Paderborn, Nuremberg and MuensterOsnabrueck were closed as part of a restructuring effort. Meanwhile, customer service was outsourced to an external service provider.

LSG Sky Chefs re-entered the Spanish market with a new operation in Madrid. It also entered Kazakhstan through a management agreement with JSC Almaty Catering Services, a subsidiary of Almaty International Airport.

Construction began on new state-of-the-art production facilities in Auckland, New Zealand, Panama City, Panama, and Salvador de Bahia, Brazil.

Additionally, LSG Sky Chefs took over the catering activities of a competitor in Brussels, Belgium.

The company's leading presence in the growing Russian market was enlarged by starting operations in Moscow-Domodedovo and Chelyabinsk.

The companyâ&#x20AC;&#x2122;s globe-spanning network, well-established expertise and financial and environmental sustainability form a solid platform for further success.

Sales and Customers Growth based on trust and quality

The company's customer base includes practically all international and numerous national and regional airlines. LSG Sky Chefs’ customer relationships have grown over the decades and are characterized by a solid retention rate built on mutual trust and superior quality of products and services. The scope and duration of its business relationships with its some 300 main customers differ greatly. LSG Sky Chefs supplies its largest customers at their hubs and many other locations.

extending existing customer agreements and growing its business. These include the extension of global catering agreements with Lufthansa, United Airlines/ Continental and LATAM. The North America region successfully extended its longstanding partnership with Virgin America in the U.S. and Mexico, while the Asia/Pacific region renewed its long-term contract with hub carrier Dragonair in Hong Kong. The company was also able to intensify its cooperation with growing airlines in the Middle East.

The regional sales teams are made up of key account managers who – depending on the size of their customer account – look after one or more customers in their respective region. They work closely with the relevant competence centers to market the non-airline catering products and services, such as the development, acquisition and logistics of in-flight service equipment and the lounge business. Expert teams are entrusted with customer acquisition and support in the adjacent markets, particularly retail store chains in North America and train operators in Europe.

With its innovative designs, the SPIRIANT equipment subsidiary managed to gain new customers, such as Singapore Airlines, Gulf Air and EVA Air, and will continue to provide its extensive services for Virgin Atlantic. The train team won new orders for the Thalys and Eurostar high-speed trains in Brussels and Alleo in Germany. The retail business in the U.S. increased its partnership with 7-Eleven during the year and acquired another convenience store chain (Circle K) as a new customer.

Demand for airline catering services continued to rise in 2013. After adjustment for the effects of consolidation, all LSG Sky Chefs’ regions achieved a higher turnover than the previous year. In spite of intensive competition and pricing pressure, the company maintained its market leadership by

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Partnerships and Joint Ventures Where global standards meet local expertise

LSG Sky Chefs has formed numerous long-lasting partnerships across the globe. In fact, all of the company's joint ventures are successful and characterized by a strong sense of partnership, with some of them being in place for more than 25 years. Those partnerships represent win-win situations in which LSG Sky Chefs benefits from the local network and market access of its partners. The partners, in turn, receive access to a global network of expertise in important areas, such as operations, quality, human resources, technology as well as research and development. In 2013, the partnership network was extended to include Chelyabinsk, Russia (joint venture with airport operator Novaport), and Almaty, Kazakhstan (management agreement with JSC Almaty Catering Services, a subsidiary of Almaty International Airport). Beyond these partnerships, which drive geographical expansion, LSG Sky Chefs also upgrades its expertise through collaborations with specialized partners, such as Retail inMotion, Oakfield Farms Solutions and Kühne + Nagel. Those partnerships are described in more detail in the Products and Services Section.

Major partnerships include: Aeromar – the 51/49 joint venture with Russian carrier Aeroflot – established in 1989 in Moscow-Sheremetyevo and expanded to the airline catering markets of St. Petersburg and Vladivisotok in 2012. Twelve joint ventures with major Chinese airlines, authorities and local partners at 17 airports in China – established between 1990 and 2010, they include units in Beijing, Chengdu, Dunhuang, Guangzhou, Hangzhou, Hefei, Hong Kong, Kunming, Lanzhou, Lijiang, Nanchang, Nanjing, Sanya, ShanghaiHongqiao, Shanghai-Pudong, Shangri-La, Urumqi and Xian. Goddard Catering Group – established in 1997 with a shareholding of 49 percent and comprising locations in 17 countries in Latin America and the Caribbean: Antigua, Barbados, Belize, Bermuda, Cayman Islands, Colombia, Ecuador, El Salvador, Grenada, Guatemala, Jamaica, Netherlands Antilles, Paraguay, St. Lucia, Tobago, Trinidad, Uruguay and Venezuela. Aerococina de Mexico – established in 1997 with a current shareholding of 51 percent and a presence in Bajio, Cancun, Chihuahua, Cozumel, Guadalajara, Hermosillo, Merida, Mexicali, Mexico City, Monterrey, Puerto Vallarta, San Jose del Cabo, Tijuana and Zacatecas. Joint venture with Asiana Airlines – established in 2003 with a shareholding of 80 percent at the fast-growing SeoulIncheon airport.

213 Airports served

Products and Services Rich portfolio ensuring peace of mind

LSG Sky Chefs’ vision, “To deliver the taste of the world to make your customers’ day better,” expresses the commitment and dedication of its employees to service and quality, no matter where their customers are.

LSG Sky Chefs’ vast experience and constant search for innovation has generated a complete set of attractive products and services that go beyond classic airline catering. Today, the company’s portfolio includes:

Airline Catering

At the heart of LSG Sky Chefs’ broad range of activities is its proven expertise in airline catering, which spans more than 70 years of history. Today, that legacy is carried on by an excess of 700 chefs representing different cuisines in 210 customer service centers in 54 countries. By applying that expertise, the company is able to offer airlines, passengers and consumers high-quality culinary choices every day, anywhere.

The company constantly enhances its portfolio in order to deliver a more pleasant passenger experience along the entire travel chain, starting with the booking and through to the final destination. This travel-chain concept has also been successfully adapted to the particular needs of high-speed train passengers. It illustrates the scope and value of onboard services from the consumer’s perspective. From the operator’s (airline or train) point of view, the primary requisites have been identified as being passenger satisfaction, efficiency and revenue generation.

The LSG Sky Chefs Culinary Excellence Group develops new trends in food production technology, presentation and packaging design. Based on their combined in-depth knowledge, unique and authentic culinary concepts are created. Those include a wide range of dietary and ethnic cuisines.

TOTAL

532 m i ll i o n

PER DAY

MEALS

2013

1.5 m i ll i o n

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Food Solutions

As a proactive response to the changing market requirements, LSG Sky Chefs has built a robust line of products that can complement or replace traditional catering solutions: The company is the only global provider of frozen airline meals, offering meal concepts for complimentary services, Buy-on-Board, take-away snacks and food components. The frozen-meal product catalogue includes over 900 different dishes representing 100 ethnic varieties. Through its cooperation with Oakfield Farms Solutions, established in the U.S. in 2009 and in Europe in 2011, LSG Sky Chefs is also a leading provider of customizable mealbox solutions that can hold an assortment more than of nutritional snacks and meal components. Boxes and ingredients are individually created and composed to SERVES support the customer’s brand values.

Equipment Sourcing and Design/ Development

to the equipment market. Products include meal service equipment (trays, cutlery and tableware), comfort items (linens and amenities), galley equipment (trolleys/carts and drawers) and commodities. All of them are designed to strengthen the airline’s specific brand values while addressing the practical needs of the crew and passengers. The power of innovation in the equipment area has also been proven through the launch of various environmentally-friendly products. These range from simple cups to complete tray sets. In addition to numerous other awards won over the past several years, the "Metropolitan" meal box developed by SPIRIANT (and used on Lufthansa Business Class) was a winner in the Dieline Package Design Awards.

35,000 200 1,500 4,500

handles more than

handles

With creatively designed, intelligently engineered and efficiently delivered products and services, LSG Sky Chefs’ new equipment brand, SPIRIANT (formerly known as LSG Sky Chefs Catering Logistics GmbH, or LCL), is a leading global provider of in-flight products, equipment and logistics aimed at optimizing an airline’s entire supply chain. The brand was launched in the spring of 2013 as evidence of the company’s long-term commitment

PALLET STORAGE LOCATIONS globally

catering stations

pallets/day

Equipment and Logistics SkylogistiX, a joint venture between LSG Sky Chefs and Kühne + Nagel one of the world’s leading logistics providers, offers outsourcing and logistics expertise in the supply chain management of in-flight catering equipment. State-of-the-art custom-designed IT systems support all processes.

different items of equipment

The joint venture was founded in 2007 to combine LSG Sky Chefs’ proven knowledge about in-flight and equipment management with Kühne + Nagel’s logistics excellence. 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). Those services aim at bringing innovation into the in-flight service supply chain through leading-edge systems, dedicated expertise and the company’s global network.

Beverage

Service/ Staff

More than lounges served worldwide

Equipment

Cleaning Services

Total Outsourcing

LSG Sky Chefs partners with Retail inMotion (RIM), a leading retail technology provider, to support airlines and train operators in optimizing their onboard sales processes and increasing their ancillary revenues. The joint venture was created in the spring of 2013 and brought together RIM’s market-leading end-to-end retail technology platform and LSG Sky Chefs’ know-how and access to the global airline industry. Products and services include product innovation and sourcing, forecasting and planning, menu design, marketing and crew training. They also encompass the management of all aspects of the in-flight supply chain, enabled by a unique suite of business applications. These systems allow the airlines or train operators to increase the quality of delivery while reducing costs.

Security Services

Waste Management

Logistics

Food &

Consulting

Buy-onBoard/ Retailonboard

Lounge Services

The company’s U.S.-based subsidiary SCIS Air Security provides the airline industry with solutions for the post 9/11 enhanced security requirements. It is recognized as the leader in airline catering security in North America. In the meantime, it has expanded its portfolio to include airport operations area security, aircraft security, cargo security, personnel screening, in-flight entertainment and in-flight point-of-sale solutions, duty free management and cash management services.

Years of experience in operating and managing lounges has given LSG Sky Chefs a clear and competitive lead in this area. The company currently manages 65 lounges and provides food and beverage services to around 30 additional lounges at 36 airports around the world.

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 travelers and a more efficiently-handled area for the airline or train operator.

Consulting and Innovation

LSG Sky Chefs applies a structured approach to the process of identifying, developing and implementing innovations. And it is part of the consultations it has with customers regarding how to further develop and reshape their service models. The innovation process has four phases: Identifying new trends, using these trends to create a vision for the customer’s brand, working with customers to turn this vision into a practical concept and converting concepts into tangible products. When emerging trends are identified, proven innovation extrapolation techniques are applied to translate these trends into a service vision. Within the framework of co-innovation workshops, the service vision is turned into concrete concepts that fit with the customer’s brand and goals and which can be practically implemented. Once the concept has been developed LSG Sky Chefs’ innovation and design teams work in unison to bring it to life.

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CASE STUDY: GERMANWINGS LSG Sky Chefs’ “hybrid” catering concept – a blueprint for our industry

As low-cost carriers continue to exert their influence on the passenger flight experience, airline caterers are also being forced to adapt to changed norms and individualized passenger expectations. Alongside traditional catering concepts, new ideas are emerging on how to combine high-end, complimentary services for premium guests with reasonably-priced, innovative offerings for Buy-on-Board passengers. The challenge lies in combining these two models into a single concept that reflects the airline’s brand identity, is appealing to passengers and can continue to uphold high standards for operational efficiency. LSG Sky Chefs has developed an onboard service model to precisely address these needs. Our new “hybrid concept” has been successfully flying with Germany’s premium low-cost carrier Germanwings since July 2013, and is already setting new standards for onboard hybrid service concepts of the future. In the Germanwings model, all passengers get a Buy-on-Board menu card in their seat pocket, offering a variety of shelfstable snacks, beverages and retail items, such as cosmetics, perfume and jewelry. This card is complemented by the new, “Your Choice” Buy-on-Board menu, which tempts passengers with

freshly-made, seasonal and often locallygrown food and beverage selections that change every month. “Your Choice” was introduced in order to offer variety to Germanwings’ frequent travelers, and to appeal to passengers who had purchased a premium fare – thus enabling them to select preferred food and beverage items á la carte and free of charge from either of the two onboard menu cards. Parallel to the launch of the new catering concept, the carrier introduced a new fare system with which travelers can customize their onboard service: asic appeals to the most priceB conscious passengers, with no “extras” like food, drinks or baggage allowance included in the ticket price. Guests have the option to purchase food and beverages from either the Buy-on-Board card or the monthly “Your Choice” selections. Smart offers a standard fare, and the ticket price includes a number of additional services such as baggage allowance, preferred seating and a meal box with a snack, beverage and a dessert. est is reserved for Germanwings’ B most distinguished passengers, offering maximum comfort – including complimentary, á la carte catering from both of the onboard menu cards as well

as attractive extras like preferred seating, unrivaled seat pitch, additional baggage allowance, lounge access and more. In order to support this concept and enhance all associated processes, the latest advanced technology was required. LSG Sky Chefs worked closely with its joint venture partner, Retail inMotion, (RIM) to put its new model into action. RIM’s advanced software optimizes LSG Sky Chefs’ internal processes while enabling Germanwings’ flight attendants to easily carry out all onboard processes using handheld, touch-screen sales computers. Many of these tasks were done manually in the past. The handheld units also link to Germanwings’ own Passenger Information List (PIL), so the crew knows which passenger has booked which fare – and can therefore be offered the correct food and beverage service proactively and efficiently. This intelligent business model is evidence that entrepreneurial thinking achieved between an airline, leading IT specialist and LSG Sky Chefs can lead to a revolutionary approach. The hybrid model has proven successful and is truly an industry benchmark.

Revenues and Earnings Stringent management resulting in sustainable performance

LSG Sky Chefs has once again managed to increase sales and operating profit

LSG Sky Chefs was able to benefit from the overall positive economic development in 2013. In combination with continued stringent management focusing on growth and cost control, it has once again managed to increase sales and operating profit. This success is based on a very solid foundation that has been built by gradually transforming the company. Next to the successful standardization of process flows, the company’s flexibility has grown substantially. Also, entry into new geographic as well as adjacent markets was successfully accomplished with the help of innovative business models. In the financial year 2013, LSG Sky Chefs’ consolidated revenues rose by 0.4 percent (adjusted for currency effects: +3.3 percent) to EUR 2.514 m. Changes in the group of consolidated businesses reduced revenues by EUR 74 m compared to previous year. Other operating income fell by EUR 24 m to EUR 86 m, largely due to the premature termination of a leasing agreement in the United States in 2012 and lower reimbursements from the parent company within the framework of the Lufthansa SCORE program compared to the prior year. Overall, total operating income slightly decreased by 0.5 percent to EUR 2.599 m. Despite the increase in revenues, LSG Sky Chefs has managed to decrease the total operating expenses by EUR 17 m to EUR 2.495 m.

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Cost of materials and services sank by EUR 20 m to EUR 1.104 m. This development was mainly driven by changes in the group of consolidated businesses. The cost of materials ratio dropped 1.0 percentage point to 43.9 percent. The average number of employees went up to 31,375, meaning 4.6 percent more than the year before. In total, personnel expenses climbed by 1.4 percent to EUR 927 m, mainly due to the higher number of employees as well as ongoing restructuring expenses related to the SCORE program in Germany. The amortization and depreciation ratio amounted to 2.5 percent, corresponding roughly to the 2012 figure (2.6 percent). The nominal amount slightly declined by EUR 3 m to EUR 62 m. Other operating expenses decreased by 1.7 percent to EUR 402 m on a year-to-year basis. LSG Sky Chefs achieved an operating profit of EUR 105 m in 2013, 4 million above the previous year’s figure of EUR 101 m. This represents an improvement in the operating result for five consecutive years. The result from investments accounted for using the equity method, increased by EUR 4 m to EUR 18 m. The interest result amounted to EUR minus 18 m and has thus increased by EUR 6 m, mainly due to lower interest expenses.

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Other non-operating result of EUR minus 19 m was mainly influenced by negative exchange rate effects. The significant decrease of EUR 46 m compared to the previous year is primarily due to a gain resulting from the incorporation of a business operation into a joint venture in the UK in 2012. Moreover, a gain from a disposal of an investment in Malaysia was included in the prior year. The above-mentioned developments, especially within the nonoperating result, led to a decrease in the result after taxes by EUR 37 m to EUR 57 m.

CASE STUDY: RETAIL In June 2010, the LSG Sky Chefs Executive Board gathered its senior management team in Seeheim, Germany, to explore new ideas that would define the future path of the company. Called “Mission 2015,” the plan called for a deliberate expansion into selected adjacent markets, or businesses in which LSG Sky Chefs had the potential to penetrate and grow due to its core airline catering expertise, which emphasizes culinary excellence and logistics. Fast-forward three years. The company is a leading provider of educational catering in Hong Kong, serving around 36,000 school lunches daily. In Europe, it provides onboard catering for a number of high-speed train operators, and in the U.S., a dedicated retail division supplies fresh and frozen convenience store foods to top-name retailers. Today, the adjacent markets business represents a promising contributor to LSG Sky Chefs’ 2015 revenue goals. At the heart of this growth is the U.S. retail division, whose revenues have more than quadrupled during the last three years. The U.S. retail business supplies fresh and frozen privatelabel salads, sandwiches and wraps to around ten major retailers and convenience store outlets across the country – retailers who continue to expand their food offerings as part of an estimated USD four billion industry. With its high standards for quality, food safety and culinary excellence, LSG Sky Chefs is well-positioned to further grow with its existing customers and eventually take a larger share of this market going forward. According to Michael Norris, LSG Sky Chefs’ Vice President Retail North America, the future looks

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extremely bright. “We are strongly focused on our current platforms (sandwiches, salads and wraps), as well as our newly-added ones, such as Extended Shelf Life (ESL) products, which can reach a far greater number of potential consumers. We believe expanding into these new platforms is our greatest opportunity to achieve our 2015 goals. At the same time, we remain focused on growing our overall retail portfolio by expanding our current customer relationships to additional U.S. locations, entering into fresh entrée partnerships and reviewing strategic acquisition opportunities to increase our national footprint.” Indeed, top convenience store customer 7-Eleven recently awarded the company new business that has fresh sandwiches, bakery and other items now supplied from eight of LSG Sky Chefs’ ten retail facilities across the country – servicing thousands of stores on a daily basis and making them one of the company’s largest customers. Additional retail customers currently include: Circle K, the second-largest U.S. convenience store chain; Hess Convenience Stores; McLane, a supplier to grocery and mega retailers such as WalMart and Walgreens; CVS stores; RaceTrac and others.

LSG SKY CHeFS – PROVEN EXCELLENCE The LSG Sky Chefs 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:

2013 QSAI Award of Excellence for the Americas ‘Gold Medal’ | Bonaire, Netherlands Antilles

2013

2013 QSAI Award of Excellence for the Americas ‘Silver Medal’ | Buenos Aires, Argentina 2013 QSAI Award of Excellence for the Americas ‘Bronze Medal’ | Santiago de Chile, Chile 2013 QSAI Award of Excellence for Europe, Middle East & Africa ‘Silver Medal’ | Munich, Germany 2013 QSAI Award of Excellence for Europe, Middle East & Africa ‘Bronze Medal’ | Kiev, Ukraine Delta Airlines ‘Caterer of the Year Award 2013’ | Milan Malpensa, Italy Chartered Institute (Australia) ‘Best Supplier Partnership’ for cooperation between Air New Zealand and LSG Sky Chefs | LSG Sky Chefs, New Zealand

2012

2012 QSAI Award of Excellence for the Americas ‘Gold Medal’ | Bonaire, Netherlands Antilles 2012 QSAI Award of Excellence for the Americas ‘Bronze Medal’ | St. Lucia, St. Lucia 2012 QSAI Award of Excellence for Europe, Middle East & Africa ‘Silver Medal’ | Munich, Germany 2012 QSAI Award of Excellence for Europe, Middle East & Africa ‘Bronze Medal’ | Cape Town, South Africa ANA Overseas Caterer Award as ‘2012 Best Short Haul Caterer’ | Seoul, South Korea Asiana ‘Best Caterer Award 2012’ | Seoul, South Korea Asiana ‘Best Performance Award 2012’ (Europe) | Frankfurt International, Germany Cathay Pacific ‘Most improved Caterer 2012’ | CLS Catering, Vancouver, Canada Chengdu Airlines Excellent Service Award 2012 | Chengdu, China Etihad ‘Annual Global Excellence Award 2012’ Outstanding Customer Service | Brussels, Belgium Etihad ‘Annual Global Excellence Award 2012’ Outstanding Support | Bangkok, Thailand Fraport Energy Award 2012 ‘Highest Savings’ | Frankfurt International, Germany Lufthansa Quality Award 2012 | Munich, Germany 7-Eleven Outstanding Fresh Food Quality 2012 for Norris Food Services (NFS), a major U.S. subsidiary of LSG Sky Chefs’ retail group | USA United Airlines ‘2012 Year-End Awards Winner – Best Kitchen Performance and Best United Voices Comments Performance’’ | Denver, USA United Airlines “Supplier of the Year 2012” | Oakfield Farms Solutions United Airlines ‘2012 Mid-Year Award Winner – Best reliability’ | Munich, Germany | Mexico City, Mexico | Denver, USA | Sacramento, USA | Minneapolis-St. Paul, USA | Bangkok, Thailand United Airlines ‘2012 Mid-Year Award Winner – Overall Best Kitchen Performance’ | Denver, USA | Santa Ana, USA | Sacramento, USA United Airlines ‘2012 Mid-Year Award Winner – Best United Voices Comments Performance’ Denver, USA | Santa Ana, USA | Sacramento, USA | Portland, USA

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SPIRIANT – Where INSPIRATION mEETS PERFORMANCE The innovative and unique products designed by LSG Sky Chefs’ subsidiary SPIRIANT take into account the growing environmental awareness. This is increasingly recognized by a number of renowned international design awards, such as:

‘Good Design Award’ for the “Slot” tray and tableware

2013

‘Good Design Award’ for the Lufthansa bread basket ‘Good Design Award’ for the Lufthansa salt & pepper shakers ‘Good Design Award’ for the Lufthansa Berlin Gourmet Box ‘Dieline Package Design’ Award – 1st in Fresh Food category for the Lufthansa “Metropolitan“ Meal Box ‘Gute Gestaltung/Good Design 14’ – Silver Award in the product category for the “Slot“ tray and tableware

2012

iF Design Award for the Transaero “Slot” tray series Observeur du Design Award 2012 for the Lufthansa “Metropolitan” Meal Box Series

Quality and Food Safety

Fundamental elements delivering excellence

Ambitious Business Strategy

Offering customers the highest levels of quality and efficiency is a fundamental element of the LSG Sky Chefs philosophy. A key part of this effort is the companyâ&#x20AC;&#x2122;s Global Quality System (GQS), which ensures consistency at all times regarding the factors that are most important to airlines, train operators or retailers: customer Steadfast Commitment satisfaction, on-time and safety performance, Co n t i n u o u s Improvement product and process quality as well as food safety and hygiene.

Culinary Excellence

EXCELLENCE Excellence Initiatives

Track Focused QualityRecord Competence Centers

From concept creation to passenger satisfaction, LSG Sky Chefs has a proven track record when it comes to quality. In fact, the companyâ&#x20AC;&#x2122;s current quality scores are at an all-time high. Quality, safety and security are fundamental priorities to the company and it has comprehensive management structures, policies, values and principles that focus on these issues. The dayto-day operations are governed by strict quality standards and systems that live up to both customer and passenger expectations on a consistent basis, while meeting all applicable international, regional and country laws and regulations.

PAGE 20 | 21 .............................................................................................................................................................................................................................................

To ensure quality performance at all times, GQS not only adheres to the strictest standards, but it effectively builds quality assessment and feedback into the production processes. The result is a continuous quality improvement cycle. GQS provides built-in checks and controls and is supported by internal feedback loops and problem-solving techniques that focus on the factors that matter to airlinesâ&#x20AC;&#x2122; in-flight success. Through this proprietary system, the company can monitor the entire supply chain, including: Supplier selection Receiving and storage of goods Production line processes Final delivery of the product GQS also defines standards based on legal compliance, adherence to customer specifications and customer feedback. Data is evaluated and presented in a monthly global quality report for management review. It highlights the performance of an airline or an individual unit, and it is used to trigger corrective actions and continuous improvement measures.

In 2013, this reporting system was upgraded with a new database (Computer Aided Quality System or CAQS) that categorizes key performance indicators (KPIs) as performance or sustainability-related, adding transparency while reducing complexity to the process of attaining targets. This enhanced database reflects the companyâ&#x20AC;&#x2122;s emphasis on constantly promoting sustainable improvements. LSG Sky Chefs has Quality Managers at all locations around the world that conduct regular inspections and use GQS to verify quality and food safety practices. The systems are checked and verified through a series of audits, some of which are conducted unannounced by an external hygiene institute, state and local governments, customers or third-party vendors. Management is informed about the quality of all customer service centers on a monthly basis.

Corporate Social Responsibility A common philosophy for the organization

Social responsibility is becoming increasingly important in our business offering. Accordingly, we have established a program that is fully supported by the LSG Sky Chefs Executive Board and the senior management team and serves as the common philosophy for the entire organization. LSG Sky Chefs employs more than 32,000 people. They come from over 100 countries and represent a rich diversity of cultures, backgrounds and experiences. The company remains respectful and supportive of its eclectic workforce and broad culture, and also recognizes the benefits of the wide-ranging backgrounds of its suppliers, customers and business partners. After two decades of successful expansion through mergers and acquisitions, which brought about a rich mix of different company cultures, LSG Sky Chefs introduced a set of Company Values in 2007. The values are designed to promote responsible behaviors and attitudes as guidelines for the employees. At the same time, they are intended to harmonize the companyâ&#x20AC;&#x2122;s strengths.

The Company Values emphasize: Respect Trust Reaching for Excellence Customer Commitment Innovation Economic Health The progress made in implementing a values-based culture is measured every two years through worldwide values surveys that underline achievements and improvement areas by location. The participation rate has increased from 58 percent in 2008 to 65 percent in 2010 and an outstanding 71 percent in 2012. This reflects the commitment of employees around the world to contribute in further shaping the companyâ&#x20AC;&#x2122;s future. LSG Sky Chefs strives to make the company a good place to work. With higher employee satisfaction it can ensure better, more consistent results for its clients while retaining more employees in a traditionally high-turnover industry.

210

54 COUNTRIES

CATERING OPERATIONS

Environmental Management A structured and expansive approach

Examples of environmental sustainability include:

Over the past 20 years, LSG Sky Chefs has developed what is today considered the in-flight service industry’s most structured and expansive approach to environmental care. This approach permeates everything the company does to ensure general awareness and continuous improvement throughout its worldwide organization. It is also designed to meet the customers' and shareholders’ environmental expectations. Based on a single global policy, the approach consists of six regional environmental programs that include specific targets with regard to the reduction of energy, water and waste in each region. A global best-practice database is made available to all catering units where approved processes and improvements are logged for implementation. Based on the progress and results, LSG Sky Chefs is the only airline caterer that compiles and publishes an annual environmental report showcasing its improvements.

“Enlight” product line developed by SPIRIANT, consisting of lightweight and recyclable equipment “Quantum” lightweight catering trolley, which weighs up to 40 percent less than traditional trolleys Resource conversion through a dishwashing information management system that monitors energy, water and detergent consumption LED lighting, minimizing energy use and maintenance Zero-to-Landfill initiative in the U.S., reducing landfill use to zero by 2015.

Those efforts are not only appreciated by customers and employees, but also find great recognition outside our company. Over the past several years, this has been proven by a number of awards worldwide, such as: 2010 IQPC Excellence Award (London-Heathrow) 2011 IQPC Best Green Process Innovation (Chicago) 2011 Caring Company (Hong Kong) 2012 Green Gateway Environmental Excellence Award (Seattle) 2012 Most Effective Carbon Reduction (Hong Kong) 2012 Fraport Energy Award (Frankfurt) 2013 Daimler Environmental Leadership Award (Frankfurt)

EnviroNmental successes REDUCTION OF

REDUCTION

WASTE

OF PER MEAL

ENERGY CONSUPTION PER SQM

SINCE 2009

6 %

9 % REDUCTION OF

WATER USAGE PER MEAL

26.2 % SINCE 2009

Outlook

LSG Sky Chefs again expects slightly higher revenues and earnings in the 2014 business year. Restructuring will continue under SCORE, as well as other global initiatives for improving performance. The company will stay focused on customer commitment and quality leadership.

LSG Sky Chefs will stay focused on customer commitment and quality leadership In addition, it is developing new business models for established airline customers in light of the increasing importance of Buy-on-Board programs. The range of products and services that fall outside the core airline catering business, or are designed for the adjacent markets, will continue to grow. Geographical expansion will also take place in locations with growth potential in Eastern Europe, Asia and Africa.

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NORTH AMERICA

EUROPE / Middle east / Africa

CANADA

ANGOLA

Toronto (YYZ) 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) Tulsa (TUL) Washington - International (IAD) Washington - National (DCA)

LATIN AMERICA Antigua & Barbuda Antigua (ANU)

Argentina

Buenos Aires (EZE)

Barbados Barbados (BGI)

Bermuda (UK TERRITORY) Bermuda (BDA)

Luanda (LAD)

BELGIUM

Brussels (BRU) Charleroi (CRL) Liege (LGG) Oostende (OST)

Bulgaria Sofia (SOF)

DENMARK

Billund (BLL) Copenhagen (CPH)

ITALY

Milan - Malpensa (MXP) Rome (FCO) Venice (VCE)

kazakhstan Almaty (ALA)

LATVIA

Riga (RIX)

Lithuania Vilnius (VNO)

NORWAY

Egypt

Oslo (OSL) Rygge (RYG)

ESTONIA

Lisboa (LIS)

Cairo (CAI)

Tallinn (TLL)

FINLAND

Helsinki (HEL)

FRANCE

Paris - Gare de Lyon (PAR)

GERMANY

Alzey (XZY) Berlin - Schoenefeld (SXF) Berlin - Tegel (TXL) Bremen (BRE) Cologne (CGN) Dortmund (DTM) Dresden (DRS) Dusseldorf (DUS) Frankfurt (FRA) Friedrichshafen (FDH) Hamburg (HAM) Hanover (HAJ) Leipzig (LEJ) Munich (MUC) Muenster-Osnabrueck (FMO) Nuremberg (NUE) Paderborn (PAD) Stuttgart (STR) Weeze (NRN)

PORTUGAL Russia

Chelyabinsk (CEK) Krasnoyarsk (KJA) Moscow - Domodedovo (DME) Moscow - Sheremetyevo (SVO) Moscow - Vnukovo (VKO) Novosibirsk (OVB) Rostov on Don (ROV) Sochi (AER) St. Petersburg (LED) Vladivostok (VVO)

SOUTH AFRICA Cape Town (CPT) Durban (DUR) Johannesburg (JNB)

SPAIN

Madrid (MAD)

SWEDEN

TURKEY

Ankara (ESB) Antalya (AYT) Bodrum (BJV) Dalaman (DLM) Istanbul - Kurtköy (SAW) Istanbul - Sefaköy (IST) Izmir (ADB)

ukraine Kiev (KBP)

UNITED KINGDOM

Aberdeen (ABZ) Belfast (BFS) Birmingham (BHX) Blackpool (BLK) Bristol (BRS) Cardiff (CWL) Doncaster (DSA) Durham Tees Valley (MME) East Midlands (EMA) Edinburgh (EDI) Glasgow - International (GLA) Glasgow - Prestwick (PIK) Humberside (HUY) Leeds/Bradford (LBA) Liverpool (LPL) London - Gatwick (LGW) London - Heathrow (LHR) London - Stansted (STN) London - City (LCY) Luton (LTN) Manchester (MAN) Newcastle (NCL) Norwich (NWI)

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)

Switzerland

Cayman Islands (UK TERRITORY) Grand Cayman (GCM)

Chile

Antofagasta (ANF) Puerto Montt (PMC) Santiago de Chile (SCL)

Ecuador

Guayaquil (GYE) Quito (UIO)

El Salvador San Salvador (SAL)

Grenada

Grenada (GND)

Guatemala

Guatemala City (GUA)

Jamaica

Kingston (KIN) Montego Bay (MBJ)

INDIA

Bangalore (BLR) Cochin (COK) Hyderabad (HYD)

Malaysia

Kuala Lumpur (KUL) Penang (PEN)

MICRONESIA Guam (GUM) Saipan (SPN)

Myanmar Yangon (RGN)

Nepal

Kathmandu (KTM)

New Zealand

Seoul (ICN)

TANSANIA

Santa Fe de Bogotá (BOG)

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) Xian (XIY)

South Korea

Zurich (ZRH)

Colombia

China

Auckland (AKL) Christchurch (CHC) Queenstown (ZQN) Rarotonga (RAR) Wellington (WLG)

Gothenburg (GOT) Malmo (MMX) Stockholm - Arlanda (ARN) Stockholm - Skavska (NYO)

Thailand

Dar es Salaam (DAR)

Brazil

Asia / Pacific

Bangkok - Donmuang (DMK) Bangkok - Suvarnabhumi (BKK)

Mexico

Bajio (BJX) Cancún (CUN) Cozumel (CZM) Guadalajara (GDL) Mérida (MID) 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)

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CANADA

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United States

LATIN AMERICA Antigua & Barbuda Antigua (ANU)

Argentina

Buenos Aires (EZE)

Barbados Barbados (BGI)

Bermuda (UK TERRITORY) Bermuda (BDA)

Luanda (LAD)

BELGIUM

Brussels (BRU) Charleroi (CRL) Liege (LGG) Oostende (OST)

Bulgaria Sofia (SOF)

DENMARK

Billund (BLL) Copenhagen (CPH)

ITALY

Milan - Malpensa (MXP) Rome (FCO) Venice (VCE)

kazakhstan Almaty (ALA)

LATVIA

Riga (RIX)

Lithuania Vilnius (VNO)

NORWAY

Egypt

Oslo (OSL) Rygge (RYG)

ESTONIA

Lisboa (LIS)

Cairo (CAI)

Tallinn (TLL)

FINLAND

Helsinki (HEL)

FRANCE

Paris - Gare de Lyon (PAR)

GERMANY

PORTUGAL Russia

SOUTH AFRICA Cape Town (CPT) Durban (DUR) Johannesburg (JNB)

SPAIN

Madrid (MAD)

SWEDEN

TURKEY

Ankara (ESB) Antalya (AYT) Bodrum (BJV) Dalaman (DLM) Istanbul - Kurtköy (SAW) Istanbul - Sefaköy (IST) Izmir (ADB)

ukraine Kiev (KBP)

UNITED KINGDOM

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)

Switzerland

Cayman Islands (UK TERRITORY) Grand Cayman (GCM)

Chile

Antofagasta (ANF) Puerto Montt (PMC) Santiago de Chile (SCL)

Ecuador

Guayaquil (GYE) Quito (UIO)

El Salvador San Salvador (SAL)

Grenada

Grenada (GND)

Guatemala

Guatemala City (GUA)

Jamaica

Kingston (KIN) Montego Bay (MBJ)

INDIA

Bangalore (BLR) Cochin (COK) Hyderabad (HYD)

Malaysia

Kuala Lumpur (KUL) Penang (PEN)

MICRONESIA Guam (GUM) Saipan (SPN)

Myanmar Yangon (RGN)

Nepal

Kathmandu (KTM)

New Zealand

Seoul (ICN)

TANSANIA

Santa Fe de Bogotá (BOG)

South Korea

Zurich (ZRH)

Colombia

China

Auckland (AKL) Christchurch (CHC) Queenstown (ZQN) Rarotonga (RAR) Wellington (WLG)

Gothenburg (GOT) Malmo (MMX) Stockholm - Arlanda (ARN) Stockholm - Skavska (NYO)

Thailand

Dar es Salaam (DAR)

Brazil

Asia / Pacific

Bangkok - Donmuang (DMK) Bangkok - Suvarnabhumi (BKK)

Mexico

Bajio (BJX) Cancún (CUN) Cozumel (CZM) Guadalajara (GDL) Mérida (MID) 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)

Group financial INFormation

PAGE 28 | 29 .............................................................................................................................................................................................................................................

Consolidated Income Statement For the financial year 2013

2013 k€ Revenue Other operating income (including changes in inventories)

Staff costs

2,503,062 110,224 2,613,286

-1,104,177

-1,123,965

-926,651

-914,030

-62,049

-65,117

-401,719

-408,983

Total operating expenses Operating result Result from investments accounted for using the equity method

-2,494,596

-2,512,095

104,816

101,191

18,440

13,534

Interest result

-18,177

-23,890

Other non-operating result

-18,945

26,806

Profit/Loss before income taxes Income taxes Result after taxes Result attributable to minority shareholders Result attributable to shareholder of LSG Lufthansa Service Holding AG

2,513,846

2,599,412

Depreciation and amortization Other operating expenses

20121 k€

85,566

Total operating income Cost of materials and services

2013 k€

86,134

117,641

-29,194

-23,926

56,940

93,715

-17,039

-15,358

39,901

78,357

Prior year numbers are restated due to a change in IFRS accounting standards in connection with employee benefits (IAS 19R)

Consolidated Balance Sheet As of December 31, 2013

2013 k€

Assets Intangible assets with an indefinite useful life2

20121 k€

364,697

364,047

30,676

31,868

Tangible assets

426,026

401,858

Investments accounted for using the equity method

116,123

98,298

11,069

11,110

105,404

104,643

4,995

7,511

575

990

44,331

44,629

Other intangible assets

Other investments Loans and other assets Prepaid expenses Actual income tax receivables Deferred income tax assets Non-current assets Inventories Trade receivables and other receivables Prepaid expenses

1,103,896

87,516

299,238

328,871

18,177

21,680

5,516

6,295

7,340

133,446

96,983

843

2,843

Securities Cash and cash equivalents Assets held for sale Current assets Total assets

Prior year numbers are restated due to a change in IFRS accounting standards in connection with employee benefits (IAS 19R)

1,064,954

97,085

Actual income tax receivables

2013 k€

554,305

551,528

1,658,201

1,616,482

incl. Goodwill

PAGE 30 | 31 .............................................................................................................................................................................................................................................

Shareholders’ equity and liabilities Issued capital Capital reserve Retained earnings Other neutral reserves Net profit/loss for the period Equity share of the shareholders of LSG Lufthansa Service Holding AG Minority interests

2013 k€

20121 k€

140,000

1,775,319

-1,245,186

-1,377,947

-310,020

-289,824

39,901

78,357

400,014

325,905

39,478

38,789

Shareholders’ equity Retirement benefit obligation

2013 k€

439,492

364,694

217,429

296,286

Other provisions

33,748

29,842

Financial liabilities

237,562

288,605

53,592

57,022

1,816

1,339

14,286

16,021

Other financial liabilities Payments received on account, deferred income and other non-financial liabilities Deferred income tax liabilities Non-current provisions and liabilities

558,433

689,115

Other provisions

56,019

54,998

Financial liabilities

14,082

13,863

518,804

432,921

Payments received on account, deferred income and other non-financial liabilities

48,610

39,477

Actual income tax liabilities

22,761

21,414

Trade payables and other financial liabilities

Current provisions and liabilities Total shareholders’ equity and liabilities

660,276

562,673

1,658,201

1,616,482

Executive Board responsibilities

Division

Walter Gehl Chairman and CEO

Jens Theuerkorn Chief Financial Officer

Jochen M端ller Chief Operating Officer

Erdmann Rauer Chief Sales Officer

Chief Executive Officer

Finance

Operations

Sales and Marketing

Communications/ Marketing

Accounting

Operational Excellence including:

Sales

Compliance

Controlling

Aviation Security

Product-Innovation and -Marketing

Human Resources

Mergers and Acquisitions

Engineering

Internal Audit

Processes and IT

Environment

Legal/Corporate Office

Procurement

Production System

Strategy

Risk Management

Quality

Labor Director Corporate Functions

Shared Service Centers Regions, Divisions and Projects

"SCORE-Upgrade for Performance" Project

Retail Markets (Ringeltaube)

Asia/Pacific

Equipment Sourcing and Design

Eastern Europe/ Middle East/Africa

Equipment Logistics

Europe

Buy-on-Board

Germany Latin America North America Air Security Lounges

PAGE 32 | 33 .............................................................................................................................................................................................................................................

Key Figures 2013

Key Figures

2012

2011

2010

2009

EUR m

2,514

2,503

2,299

2,249

2,102

Operating result

105

101

Capital expenditure

32,307

30,088

29,586

28,499

28,390

Revenues 1)

Employees as of Dec. 31

Company Data 2013 Meals produced

532 million

Customer Service Centers

210

Airports served

213

Countries

Companies comprised

156

Customers

more than 300

Corporate Headquarters

Neu-Isenburg (Frankfurt), Germany

Executive Board

Walter Gehl, Chief Executive Officer Jochen Müller, Chief Operating Officer Erdmann Rauer, Chief Sales Officer Jens Theuerkorn, Chief Financial Officer

Supervisory Board

Simone Menne (Chairman), Dr. Bettina Volkens, Prof. Dr. Ingrid Göpfert, Klaus Furck, Axel Tillman, Dr. Reinhold Huber, Gerold Schaub3) (Deputy), Frank Hartstein3), Mathias Kilzer3), Frauke Bendokat3), Michael Rüschenbaum3), Christina Weber3)

Core business activities

Catering In-flight Equipment Sourcing and Design In-flight Equipment Logistics Airport Services

Adjacent market activities

Retail Train Services School Catering

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 labilities, and other periodic expenses and income 22012 numbers are restated due to a change in IFRS accounting standards in connection with employee benefits. 3Employee Representative

.............................................................................................................................................. LSG SKY CHEFS | Executive board responsibilities | KEY FIGURES

we deliver the taste of the world to make your customers' day better

LSG Sky Chefs

Corporate Communications

Phone +49 6102 240-880

Fax +49 6102 240-885

DornhofstraĂ&#x;e 38

63263 Neu-Isenburg

info@lsgskychefs.com

Germany