the Annual Review 2014

Transcription

CONTENTS
02
Letter from the Executive Board
04
Insider Interviews
06
Business and Strategy
08
Markets and Competition
10
Sales and Customers
11
Partnerships and Joint Ventures
12
Products and Services
17
Revenues and Earnings
18
Awards
20
Quality and Food Safety
22
Worldwide Presence
26
Corporate Social Responsibility
27
Environmental Management
29
Environmental Successes
30
Outlook
33
Consolidated Income Statement
34
Executive Board Responsibilities
35
Key Figures
Letter from the Executive Board
DEAR READER,
The year 2014 was a good one for our industry. Passenger volumes continued to grow
in all regions. We also saw a slight tendency to upgrade service concepts thanks to the
improved financial situation of many carriers, even in mature markets but especially in
North America. While benefitting from this growth across our network, LSG Sky Chefs
was also able to strengthen its position in the increasingly important onboard retail
sector and in some adjacent markets.
Over the past few years, the company has enjoyed a solid and sustainable operational
and financial performance, providing a strong basis for our future. Looking ahead,
we have the clear goal of becoming more market- and customer-focused in order to
stay ahead and live up to our obligation to develop the market further with innovative
products and service concepts. In order to get there, we have launched several
worldwide initiatives that revolve around innovation, consumer data and onboard retail
programs. They will prepare us to better deal with the increasingly divergent customer
and consumer demands we must meet today.
We look forward to continue working with you and proactively define common goals
and opportunities. At the same time, we would like to thank you for your trust and
personal contributions, which have helped us remain the top player in our core
business while tackling new ventures to achieve the profitable growth we aim for
in our Mission and our Strategy.
yours
sincerely,
Jochen Müller
Chief operating officer
Erdmann Rauer
Chief Executive officer
Dr. Kristin Neumann
Chief FINANCIAL officer
PAGE 02 | 03 .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... LSG SKY CHEFS | annual review 2014
an in-depth
look at
LSG Sky Chefs
We would like to
invite you to take
an in-depth look at
LSG Sky Chefs – our
way of thinking and
what motivates us.
Get to know five
individuals who
represent various
areas of our company.
Discover their actual
statements, revealing
what drives them
and why their skills
and expertise benefit
customers and
consumers alike.
INSIDER
INTERVIEWS
ceo
erdmann
RAUER Jörg
Tüttelmann
SCAN THE CODE
and Watch JÖRG'S
INTerview!
SCAN THE CODE
and Watch erdmann'S
INTerview!
VP Culinary Excellence
Pinar Meitzner
VP Sales, Design and
Engineering SPIRIANT
SCAN THE CODE
and Watch PINAR'S
INTerview!
VP Sales and Steering
Florian von
Oertzen
Michael
Wahl
SCAN THE CODE
and Watch michael'S
INTerview!
SCAN THE CODE
and Watch FloRIAN'S
INTerview!
VP Product
Marketing
and Innovation
Market Leader
Portfolio E
Business and Strategy
LSG Sky Chefs broadens its presence and expands its portfolio
for Finance, Human Resources, Procurement, Information
Technology and the German retail shops “Ringeltaube”.
At the end of the year 2014, the Group comprised 159
companies that supply a considerable roster of airlines at 214
airports. LSG Lufthansa Service Holding AG (headquartered in
Neu-Isenburg, Germany) is the parent company. Changes in the
group of consolidated companies this year included the first-time
consolidation of Chelyabinsk Catering Service in the third quarter
of 2013 and of Starfood Finland Oy on March 1, 2014.
Jochen Müller remains the company’s Chief Operating Officer
(COO) and Member of the Executive Board since March 2005.
He is responsible for the group’s worldwide operations.
Additionally, he supervises the SPIRIANT/SkylogistiX equipment
and logistics subsidiaries, LSG Sky Chefs Lounge and Air
Security businesses as well as the Corporate Operational
Excellence function.
In the course of the business year 2014, the composition of the
Executive Board changed and was reduced from four to three
members. On July 1, Dr. Kristin Neumann took over as Chief
Financial Officer (CFO) and Chief HR Officer with responsibility
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 the highly diverse customer requirements
On October 1, Erdmann Rauer, who had been a Member of the
Executive Board in his role as Chief Sales Officer since January
2011, assumed the helm of the company as the new Chief
Executive Officer (CEO). Strategy and Business Development,
Sales and Products, Communications and Marketing, Legal
and Corporate Affairs as well as Internal Audit all fall within his
area of responsibility.
LSG Sky Chefs
has expanded its portfolio with a
special focus on its core competencies –
culinary excellence and logistics.
pansion
Worldwide Presence
Global Quality
P ro f itab l e Growt h
Performance C usto m er C entricit y
S tandardi z ation
Product
and
Process
Innovation
LSG Sky Chefs is the global market leader in airline catering in
terms of market share, quality, innovative drive and worldwide
presence. With 210 customer service centers based in 51
countries, the LSG Sky Chefs Group has the largest network
of production sites in the industry. In both of its home markets
(Germany and the United States) the company is present at
almost all major airports. In the emerging markets of Latin
America, Asia/Pacific, Africa and Eastern Europe, the network
of units is being continuously extended via joint ventures and
management agreements with local partners.
x
Strong
Partnerships
Rich Diversity
based on market maturity or growth, expansion opportunities
and cultural differences are adequately met. Over the past
few years, LSG Sky Chefs has expanded its portfolio with a
special focus on its core competencies – culinary excellence
and logistics.
In terms of culinary excellence, the company enhanced its
services in order to accommodate the changing requirements
of its airline customers. This entailed the further refinement of
its culinary excellence philosophy to include the preparation of
ethnic meals, which are increasingly in demand. In the area of
logistics, the company – via its subsidiary, SPIRIANT – provides
a growing number of airlines with the development, procurement,
planning, transportation and warehouse handling of catering
equipment. These include point-to-point, legacy and start-up
low-cost carriers in all regions.
The portfolio expansion also includes gaining the capacity to
handle the complete management of onboard retail processes,
from analyzing and recording the needs of consumers to the
selection of products, demand forecasting, logistics and sales
processes, as well as invoicing.
Additionally, LSG Sky Chefs continues to offer its extensive
expertise in culinary excellence and logistics to new customer
groups such as train operators, convenience retail chains
and school and university canteens. In seeking to complement
its internal competencies, the company actively cooperates
with business partners around the globe. In order to further
secure its continued success, LSG Sky Chefs is building
on its profitable growth through geographic and knowledgebased expansion. To heighten customer benefits and
satisfaction, the company mostly relies on product and
process innovation, coupled with optimized service quality
and consistency.
At the same time, LSG Sky Chefs pursues consistent cost
management with the ongoing optimization of process flows
and the growing standardization of its highly decentralized
network. Cost management concerns all personnel levels,
business areas and locations of the company. The focal points
include the management of material costs by converging
volumes and applying modern supplier management, more
flexible labor costs and the introduction of new business
models based on customer requirements.
Markets and Competition
Growth in demand supports expansion plans
In the coming years, the company
expects growing passenger
volumes that will vary greatly
depending on the region.
Low-cost and charter airlines
continue to hold a disproportionate
share in this growth. Based on
this general development in the
airline industry, LSG Sky Chefs is
forecasting growth in the market
volume for airline catering.
In terms of airline catering, LSG Sky Chefs continues to hold
the industry’s leading position with a global market share of 29
percent. The market share in America and Europe, according
to internal calculations, totals around 40 and 45 percent
respectively. In Asia, where catering is commonly provided at
the hubs by the hub carriers, LSG Sky Chefs has been active
for almost 25 years and still is the market leader. In Eastern
Europe and Africa, the company continues to build its market
presence at a number of rapidly growing airports.
Network airlines are increasingly looking to upgrade their service
concepts in order to position the in-flight experience as an
additional differentiation opportunity. Low-cost and charter airlines
favor so-called hybrid models, which combine traditional free-ofcharge in-flight services for passengers with innovative onboard
retail programs that have already proven highly successful with
some customers. Comprehensive, intelligent onboard retail
programs that go far beyond the food and beverage offer with
entertainment choices and convenient shopping are increasingly
in demand. They improve the guest’s travelling experience and
open up additional revenue streams for airlines.
LSG Sky Chefs’ competition remains fragmented. There is
only one global competitor and a transparent number of local
and/or regional suppliers that are gradually expanding. The
past several years have seen a few new companies from the
logistics segment and the restaurant business enter the airline
catering market with a different product portfolio and aggressive
pricing. They offer services specifically geared towards the
onboard retail programs of low-cost carriers and less complex
onboard services on short-haul flights. They also target the
economy class service where freshness and culinary excellence
are not a priority in relation to the food selection.
The LSG Sky Chefs worldwide network of companies comprises
a number of proprietary locations and a wide range of joint
ventures with airlines, airport operators and local businesses,
especially in Latin America, China, Russia and the UK. Some
of these partnerships have been in place for several decades
and continue to grow.
The company’s network grew further during the year under
review. Its far-reaching presence in Russia now includes
10 locations after entering Rostov-on-Don as part of its joint
venture with Aeroflot, Aeromar. In China, LSG Sky Chefs
launched a new joint venture in Wenzhou, which entails the
construction of a new catering unit. Within the context of
additional new joint ventures, the company was able to enter
the markets in Sofia, Bulgaria, and the Tokyo Narita and
Haneda airports in Japan. In South Korea, the company is now
present at the country’s three busiest airports after opening a
new location in Busan. Furthermore, the company acquired the
pre-production unit for LSG Sky Chefs Finland in Helsinki, and
opened new modern production sites in Panama City, Panama,
and Nanjing, China – two locations with rich potential.
SPIRIANT, a subsidiary in the field of onboard service equipment
development and logistics, opened its first branch in Dubai, UAE,
in order to cater to the growing demand in the region for quality
onboard services. In New Zealand, LSG Sky Chefs acquired
Naturezone, a retail supplier, thereby creating a second business
pillar for the company in that country.
Sales and Customers
Sharper focus on new business models strengthens position
the financial
year 2014
was marked by
a stronger demand
for airline
catering services.
The company’s customers include virtually all international
airlines and numerous national and regional carriers. The types
of business relationships, in terms of scope and duration, vary
among the roughly 300 key customer accounts. They span
everything from global contracts to agreements for individual
locations only. Built on the company’s reputation as an industry
leader in quality and sustainability, the strength of these
relationships is confirmed periodically by a solid retention rate
in the core catering business segment. While the company
continues to sharpen its focus on innovation and new business
models, it has also managed to make inroads in the onboard
retail sector in Europe and North America.
Partnerships and Joint Ventures
Global expertise combined with local market access
The financial year 2014 was marked by a stronger demand
for airline catering services. This was due to higher passenger
volumes and the slight upgrading of onboard services by some
airlines. Consequently, LSG Sky Chefs was able to increase
sales in almost all markets. The sole exception was Eastern
Europe, where demand declined as the result of the present
political instability.
LSG Sky Chefs is proud of its partnerships around the
globe, many of which last for decades. The company was
the industry’s pioneer in entering the Chinese and Russian
markets in the 1980s and has since continued to seek new
opportunities wherever they come up by combining global
expertise with local market access. Major partnerships covering
more than one location include:
LSG Sky Chefs closed the year under review with a customer
retention rate of close to 90 percent and a three-digit million net
new business figure. New customer contracts were signed for
airline catering services as well as areas beyond.
Aeromar – the 51/49 joint venture with Russian carrier
Aeroflot, established in 1989 in Moscow-Sheremetyevo,
today comprises six locations in Rostov-on-Don (new in 2014),
Sheremetyevo, Simferopol (new in January 2015), Sochi,
St. Petersburg and Vladivostok and is the number one
caterer in Russia.
Standout deals include the global agreement with Delta Airlines
and the expansion of the business relationship with JetBlue
Airlines in the United States. There were also catering contract
extensions with Emirates, Singapore Airlines and Qantas in
New Zealand. New onboard retail agreements were signed with
Germanwings, SunExpress and Air Baltic in their respective
markets, as well as with Spirit Airlines in North and South
America. Meanwhile, closer cooperation was achieved with
the fast-growing airlines in the Middle East, particularly at their
newest destinations in North America.
LSG Sky Chefs was also able to further consolidate its market
position in the train catering segment. Thanks to innovative
service concepts, two new agreements were obtained with
French high-speed train operator iDTGV and the Italian NTV.
Thirteen joint ventures with major Chinese airlines,
authorities and local partners at 19 airports in China –
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 (new in 2014) 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, Bermuda, Cayman Islands, Colombia, Ecuador,
El Salvador, Grenada, Guatemala, Jamaica, Netherlands
Antilles, Paraguay, St. Lucia, Trinidad and Tobago, Uruguay,
Venezuela and the U.S. Virgin Islands.
Aerococina de Mexico – established in 1997 with a current
shareholding of 51 percent and present in Bajio, Cancun,
Cozumel, Guadalajara, Merida, Mexicali, Mexico City, Monterrey,
Puerto Vallarta, San Jose del Cabo and Tijuana.
Alpha LSG Limited – In 2012, LSG Sky Chefs founded a
new joint venture with the Alpha Flight Group in Great Britain,
serving 21 airports throughout the UK: Belfast, Birmingham,
Blackpool, Bristol, Cardiff, Doncaster, Durham, East Midlands,
Edinburgh, Glasgow, Humberside, Leeds-Bradford, Liverpool,
London Gatwick, London Heathrow, London Stansted, Luton,
Manchester, Newcastle, Norwich and Prestwick.
Joint venture with Asiana Airlines – established in 2003 with
a shareholding of 80 percent at the fast-growing Seoul-Incheon
airport, today it is also present at the other two major airports in
South Korea: Seoul-Gimpo and Busan.
Through these partnerships, 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
and technology, as well as research and development.
While these partnerships bolster the geographical presence of
LSG Sky Chefs, the company also engages in collaborations
with specialized partners that can complement its capabilities,
primarily in its core airline catering business. These partnerships
are described in more detail in the Products and Services
section of this report.
1.6MEALSMio.
PER DAY
meals 2014
1.6
Mio
578 Mio.
Products and Services
TOTAL
A diverse portfolio that can promote differentiation and individualization
LSG Sky Chefs’ 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
workforce, worldwide locations and
expanded portfolio.
The company consistently works on broadening its portfolio in
order to deliver a more memorable experience for passengers
along the entire travel chain, starting with the booking through
arrival at the final destination. The travel chain concept, which
was initially conceived for airlines and their passengers, has
been successfully translated to meet the needs of other target
groups, such as high-speed train and bus travelers. At the
same time, customers (airline, train and bus companies) expect
a well-balanced portfolio that leads to passenger satisfaction
while delivering efficiency and generating revenues.
LSG Sky Chefs’ vast experience, coupled with its continuous
quest for innovation has generated an array of products and
services that go beyond classic airline catering. Presently, the
company’s portfolio includes:
1
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. It rests on the company’s culinary excellence
philosophy and experience in day-to-day logistics. Today, that
legacy is carried on by more than 700 chefs representing
different cuisines in 210 customer service centers in 51 countries.
By applying that expertise, the company is able to offer airlines,
passengers and consumers high-quality culinary choices every
day, anywhere.
Depending on a customer’s needs, LSG Sky Chefs utilizes the
expertise of a team of in-flight specialists that will work hand-inhand with an airline on a number of key activities, such as:
Carrying out in-depth research on trends, consumer
demands and passenger expectations on a global scale
Translating short, medium and long-haul strategies into
value-adding catering concepts
Benchmarking with other airlines to ensure products
are “on brand”
Implementing special programs such as Celebrity
Chefs’ menus.
2
Onboard Retail
A successful onboard retail offering is built on a foundation of
providing passengers with the right product mix. This increases
customer satisfaction and improves brand perception. But it
has to be done with technology that makes those products
easy to sell and buy. That is why 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 company has developed an ideal onboard retail product
mix for its customers based on demographics, culture and
specific routes that generate income. It has also defined the
optimal stock levels of goods, ranging from luxury items to
basic products, in order to minimize waste.
Services include the selection of the product mix, menu
planning, procurement, packaging design and cabin crew sales
training. All process steps are supported by state-of-the-art
technology, which is a key success factor for onboard retail
programs. In addition, the company offers end-to-end retail
IT-solutions that include the technology, software back-up and
back-office analysis.
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LSG
SKY CHEFS
| annual
review
2014
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LSG SKY
CHEFS
| annual
review
2014
Airports served
3
Food Solutions
The range of services used by customers varies considerably –
some require full-service, others prefer convenient meal options
or meal boxes. As a proactive response to changing market
requirements, LSG Sky Chefs has built a robust line of products
that can complement or replace traditional catering solutions as
well as onboard retail programs:
LSG Sky Chefs
consistently
works on
broadening
its portfolio.
4
Equipment Sourcing and
Design/Development
With frozen food production units in China, Germany and
the U.S., the company is the only global provider of frozen airline
meals. The frozen-meal product catalog includes over 900
different dishes representing 100 ethnic varieties. Customers
benefit from increased flexibility in terms of availability and high
consistency.
LSG Sky Chefs is also a leading provider of meal-box
solutions that can be tailored to the customer’s needs and
brand values through its ownership and shareholding in
Oakfield Farms Solutions. Individually designed meal boxes
can hold a free-to-choose assortment of nutritional snacks
and meal components.
LSG Sky Chefs’ equipment brand, SPIRIANT is a leading
global provider of in-flight products, equipment and logistics
aimed at optimizing an airline’s entire supply chain.
SPIRIANT adds value by designing concepts that meet
customers’ practical needs. With nearly 20 years of experience
working with major airlines around the world, the SPIRIANT
team has the insight and knowledge to source, design and
deliver a variety of product concepts. Those include meal service
equipment (trays, cutlery and tableware), comfort items (linens
and amenities), galley equipment (trolleys/carts and drawers)
and comfort items. All of them are designed to strengthen the
airline’s specific brand values while addressing the practical
needs of the crew and passengers.
With dedicated teams across Europe, the Americas, Asia and
the Middle East, SPIRIANT employs more than 200 people.
In June 2014, the subsidiary officially opened its first branch
in Dubai, UAE, in answer to the rising demand for enhanced
in-flight services in the Middle East.
Last year SPIRIANT was also honored with the prestigious
“Good Design” award for four different products at the “Good
Design Awards” competition in Chicago. SPIRIANT’s Slot
tray and tableware, Lufthansa’s bread basket, salt & pepper
shakers and "Berlin" gourmet b ox stood out against product
designs from several thousand companies from 48 countries.
5
Equipment Logistics
SkylogistiX, a joint venture between LSG Sky Chefs and
Kuehne+Nagel, one of the world’s leading logistics providers,
creates transparency in materials management. The combination
of Kuehne+Nagel's logistics excellence and LSG Sky Chefs'
expertise in equipment management provides customers
comprehensive operational experience in in-flight services and
airline management.
SkylogistiX offers outsourcing and logistics expertise for the
supply chain management of in-flight catering equipment, all
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,
restocking and repacking 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.
Consumer Insight
Lo g istics
O n b o a r d R e ta il
Culinary Individualization
Diverse
P o rt f o l i o
Excellence
Customer
Focus
Equipment
I
nnovation
6
Consulting and Innovation
The key to understanding consumers is not just knowing
what they want, but where, when and how they want it.
LSG Sky Chefs is passionate about people, food and travelling.
Listening to consumers, conducting market research and
monitoring global trends as they emerge form the basis of our
approach to innovation.
This involves more than just looking for the latest culinary
trends; it also includes analyzing social, lifestyle and cultural
trends. When emerging trends are identified, proven
innovation extrapolation techniques are applied to translate
them into a service vision. Within the framework of coinnovation workshops, the service vision is then turned into
concrete concepts that fit with the customer’s brand and
goals. In order to achieve the best results from the innovation
process, all consumer touch points are analyzed. This lays
the ground for the creation of a seamless brand experience
for the traveler and increased awareness about the customer
services available.
Memorable
Experiences
Lounge Services
7
Lounge Services
Years of experience in operating and managing lounges have
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 passengers and a more efficiently-handled
area for the airline or train operator.
8
Security Services
The company’s U.S.-based SCIS Air Security subsidiary
provides the airline industry with solutions for the requirements
of the post-9/11 world. In fact, it is recognized as the leader
in airline catering security in North America. And it continues
to expand its portfolio to include airport operations area security,
aircraft security, cargo security, personnel screening, in-flight
entertainment and point-of-sale solutions, duty-free management
and cash management services.
9
“Ringeltaube” Retail Shops
LSG-Food & Nonfood Handel operates 24 retail shops under the
„Ringeltaube“ brand at German airports, offering a huge variety
of beverages, perfumes and cosmetics, travel accessories and
gourmet food, exclusively to airport and airline employees.
Revenues and Earnings
Solid performance in a highly competitive environment
Supported by a favorable, yet highly competitive market
environment and in line with the company’s strategy,
the LSG Group was able to continue its path of profitable
growth. LSG Group’s consolidated revenue rose by
4.7 percent (adjusted for currency effects: +6.8 percent) to
EUR 2,633 million in the 2014 financial year. Changes in the
group of consolidated businesses increased revenues by
EUR 22 million compared to previous year.
Other operating income rose by EUR 7 million to EUR 93 million.
Overall, total operating income increased by 4.9 percent to
EUR 2,727 million.
Cost of materials and services rose by EUR 52 million to
EUR 1,156 million. This development was mainly due to
the increased business volume. The cost of materials ratio
remained unchanged at 43.9 percent.
The average number of employees rose to 32,526, meaning
3.7 percent more than the year before. In total, personnel
expenses climbed by 4.0 percent to EUR 964 million. This can
be attributed to the increased business volume and the changes
in the consolidated companies in Europe.
LSG Group achieved an operating profit of EUR 100 million
in 2014, EUR 5 million below the previous year’s figure of
EUR 105 million. This reflects the ongoing price and cost
pressure in the industry which could not be fully absorbed
by productivity gains and process optimization.
The results of investments, accounted for using the equity
method, decreased by EUR 11 million to EUR 8 million
due to unfavorable exchange rates fluctuations of the
Russian Ruble. The interest result remained unchanged at
EUR minus 18 million compared to the previous year.
Other non-operating result of EUR minus 37 million was
mainly influenced by the effect of negative exchange rates and
impairments which led to an overall drop of EUR 18 million
compared to 2013.
The developments mentioned above, especially in the nonoperating result, led to a decrease in the result (after taxes) by
EUR 21 million to EUR 36 million.
Operating result
(EUR/Million)
The amortization and depreciation ratio amounted to 2.5 percent,
corresponding to the 2013 figure (2.5 percent). The nominal
amount slightly rose by EUR 3 million to EUR 65 million.
Other operating expenses increased by 9.7 percent to
EUR 441 million on a year-to-year basis. This was mainly
driven by the higher business volume and higher expenses
for external personnel.
72
76
85
101
105
100
2009
2010
2011
2012
2013
2014
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:
2014
2014 QSAI Platinum Award for best worldwide airline catering facility according to QSAI standards | Munich, Germany
2014 QSAI Award of Excellence for Europe, Middle East & Africa ‘Gold Medal’ | Munich, Germany
SPIRIANT – Where INSPIRATION
mEETS PERFORMANCE
The innovative and unique products designed by SPIRIANT
take into account the growing environmental awareness.
This is increasingly recognized by a number of renowned
international design awards, such as:
2014
Travel Plus Gold Winner for Lufthansa Children’s Goody Bag Pilotenkoffer
2014 QSAI Award of Excellence for the Americas ‘Gold Medal’ | Buenos Aires, Argentina
Travel Plus Gold Winner (Formia & SPIRIANT) for Qatar Airways Business Class amenity kits
2014 QSAI Award of Excellence for the Americas ‘Silver Medal’ | Bonaire, Netherlands Antilles
‘Good Design Award' for Lufthansa Premium Economy Class tableware
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
KLM Catering Performance Award 2014 for Africa | Cape Town, South Africa
KLM Catering Performance Award 2014 for Americas | Buenos Aires, Argentina
Singapore Airline Excellence Award 2014 | Munich, Germany
Oman Air Certificate of Appreciation for consistent performance 2014 | Kathmandu, Nepal
2013
‘Good Design Award’ for the “Slot” tray and tableware
‘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
2013
‘Dieline Package Design’ Award – 1st in Fresh Food category for the Lufthansa “Metropolitan“ meal box
2013 QSAI Award of Excellence for the Americas ‘Gold Medal’ | Bonaire, Netherlands Antilles
‘Gute Gestaltung/Good Design 14’ – Silver Award in the product category for the “Slot“ tray and tableware
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
2013 ANA Overseas Caterer Award – Silver Prize for best long-haul/middle haul caterer | Washington, USA
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
Lufthansa ‘Best Caterer Award 2013’ in the category Asia/Pacific and worldwide award | Hong Kong, China
Lufthansa ‘Best Caterer Award 2013’ in the category North and South America | Dallas, USA
Lufthansa ‘Best Caterer Award 2013’ in the category Europe | Frankfurt, Germany
United Airlines ‘Quality First Awards’ – Crystal Award Premium International (top performer in United’s Quarterly Awards) | Birmingham, UK
United Airlines ‘Quality First Awards’ – Crystal Award Hub/Large – over 10,000 departures per month | Denver, USA
United Airlines ‘Quality First Awards’ – Crystal Award Medium – 500 to 10,000 departures per month | Mexico City, Mexico
United Airlines ‘Quality First Awards’ – Silver Medal Medium – 500 to 10,000 departures per month | Bogota, Colombia
United Airlines ‘Quality First Awards’ – Bronze Medal Medium – 500 to 10,000 departures per month | Guatemala City, Guatemala
United Airlines ‘Charter Caterer of the Year | Frankfurt, Germany
Quality and Food Safety
Quality is a fundamental element of the company’s philosophy
Offering customers the highest levels of quality and efficiency is
a fundamental element of LSG Sky Chefs’ philosophy. In order
to achieve global consistency, the company builds the optimal
measure of quality into each and every aspect of the supply
chain, from innovation, product development, operations, costs
and supplier management to measuring passenger satisfaction.
It also continuously optimizes processes and services to drive
efficiency and increase quality in close cooperation with its
business partners and suppliers.
A key part of this effort is the industry-leading Global Quality
System. It guarantees consistency regarding the factors that
are most important to the customer’s success: customer
satisfaction, on-time and safety performance, product and
process quality and food safety and hygiene.
The Global Quality System not only adheres to the strictest
standards but it also incorporates quality assessment and
feedback into the production processes. It 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 the airlines’ in-flight success. Through
this proprietary system, LSG Sky Chefs can monitor the entire
supply chain.
LSG Sky Chefs has Quality Managers at all of its locations
around the world who conduct regular inspections and use
the Global Quality System to verify quality and food safety
practices. Additionally, 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
authorities, customers and third-party vendors.
LSG Sky Chefs’ strict focus on quality and food safety was
once again recognized by customers and third parties alike.
In 2014, five LSG Sky Chefs units were chosen as winners
during the presentation of the Medina Quality Awards for their
compliance with quality and food safety standards. A number
of LSG Sky Chefs facilities were also honored by Lufthansa and
United Airlines for their outstanding product and service quality.
Corporate Social Responsibility
Awareness earns trust and respect
From a purely business perspective, acting as a responsible
corporate citizen helps contain risks, enhance employee
satisfaction, strengthen customer loyalty and directly affects
the bottom line. Furthermore, by acting responsible on a daily
basis the company can enhance its reputation and earn the
respect of the communities in which it operates while creating
shared value.
LSG Sky Chefs has a social responsibility program, backed by
the company’s Executive Board and the senior management
team, which impacts the entire organization.
LSG Sky Chefs employs more than 32,000 people from more
than 100 countries. This rich diversity of cultures, backgrounds
and experiences lends a unique identity to the company that
strengthens its ability to compete effectively wherever it operates.
Understanding the worth of this unique asset, the company is
supportive of its eclectic workforce and broad culture. It also
recognizes the value of the wide backgrounds of its suppliers,
customers and business partners.
LSG Sky Chefs has also shaped its company culture to create
an environment in which a social responsibility mentality can
thrive. This is why it introduced a set of company values in 2007.
The values are designed to promote responsible behaviors and
attitudes as guidelines for employees. At the same time, they
intend to harmonize the company’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 surveys that
underline achievements and improvement areas by location.
The participation rate has increased from 58 percent in 2008
to 65 percent in 2010, 71 percent in 2012 and an outstanding
73 percent in 2014. This reflects the commitment of employees
around the world to contribute to further shaping the company’s
future. Customer Commitment was rated as the strongest and
most defining value which clearly supports the company’s goal
of becoming even more customer centric.
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.
LSG Sky Chefs
WORLDWIDE
PRESENCE
we deliver
the taste
of the world
to make
your customers'
day better.
PAGE 26 | 27 ............................................................................................................................................................................................................................................................................................................................................................................................................................................. LSG SKY CHEFS | annual review 2014
ANC
OSL
RYG
YVR
PDX
NORTH
AMERICA
CANADA Toronto (YYZ) Vancouver (YVR)
United States Anchorage (ANC)
Atlanta (ATL) Austin (AUS) Baltimore (BWI)
MSP
SLC
Boston (BOS) Burbank (BUR) Charlotte (CLT)
Chicago (ORD) Dallas (DFW) Denver (DEN)
Detroit (DTW) Fort Lauderdale (FLL) Fort Myers (RSW)
Luanda (LAD) BELGIUM
DENMARK Billund (BLL) Copenhagen (CPH)
Egypt Cairo (CAI) ESTONIA Tallinn (TLL)
FINLAND Helsinki (HEL) FRANCE Paris Gare de Lyon Rail Station (PAR) GERMANY
YYZ
ORD
SFO
SJC
EDI
CPH
BLL
NCL
MMX
MME
LBA
BFS
DSA
BLK
HUY
MAN
HAM
BRE
EMA
LPL
TXL
NWI
HAJ
FMO
BHX
STN NRN
SXF
LTN
PAD
CWL
LHR
DTM
DUS
DRS
BRS
LGW OST CGN LEJ
LGG FRA
BRU
XZY NUE
CRL
STR
PAR
MUC
Oostende (OST) Bulgaria Sofia (SOF)
SEA
DTW
PIT
BWI
DEN
SMF
OAK
BOS
JFK
LGA
TUL
PHX
CLT
AUS
IAH
Houston (IAH) Las Vegas (LAS) Los Angeles (LAX)
Miami (MIA) Minneapolis (MSP) New York - JFK (JFK)
TPA
RSW
MTY
New York - La Guardia (LGA) Oakland (OAK) Ontario (ONT)
PVR
Phoenix (PHX) Pittsburgh (PIT) Portland (PDX) Raleigh-
BJX
GDL
BDA
Weeze (NRN)
MCO
MBJ
KIN
STT
CUR
LATIN AMERICA
Recife (REC) Rio de Janeiro - International (GIG)
CCS
PTY
Antigua & Barbuda
Antigua (ANU) Argentina Buenos Aires (EZE) Barbados
Barbados (BGI) Bermuda (UK TERRITORY) Bermuda (BDA)
Brazil Belém (BEL) Campinas (CPQ) Fortaleza (FOR) Natal (NAT)
BON
SXM
ANU
UVF
GND
PMV
BGI
SOF
URC
INP
ESB
LIS
VVO
DNH
BJV
AYT
DLM
XIY
HFE
CTU
CAI
KHN
DIG
LJG
KTM
KMG
HYD
BLR
NKG
HGH
CAN
HKG
Hyderabad (HYD) JAPAN Tokyo - Haneda (HND)
GMP
ICN
PUS
Tokyo - Narita (NRT) MICRONESIA
NRT
HND
Guam (GUM) Saipan (SPN)
Myanmar
Yangon (RGN) Nepal Kathmandu (KTM)
PVG/SHA
WNZ
New Zealand Auckland (AKL)
Christchurch (CHC) Queenstown (ZQN) Rarotonga
(RAR) Wellington (WLG) South
Korea Busan (PUS)
Seoul - Gimpo (GMP) Seoul - Incheon (ICN) Thailand
Bangkok - Donmuang (DMK) Bangkok - Suvarnabhumi (BKK)
SYX
RGN
DMK
BKK
SPN
GUM
COK
Moscow - Sheremetyevo (SVO)
Moscow - Vnukovo (VKO) Novosibirsk (OVB)
Rostov-on-Don (ROV)
Simferopol (SIP) Sochi (AER)
UIO
St. Petersburg (LED) Vladivostok (VVO) SOUTH
BEL
GYE
AFRICA
Cape Town (CPT) Durban (DUR) Johannesburg (JNB)
FOR
NAT
Islands
REC
SPAIN Madrid (MAD) SWEDEN
Gothenburg (GOT) Malmo (MMX) Stockholm -
Colombia Santa Fe de Bogotá (BOG)
Ecuador Guayaquil (GYE) Quito (UIO)
El Salvador San Salvador (SAL)
Grenada Grenada (GND) Guatemala
Guatemala City (GUA) Jamaica Kingston (KIN)
Montego Bay (MBJ) Mexico Bajio (BJX)
DAR
LAD
Arlanda (ARN) Stockholm - Skavska (NYO)
SSA
Montt (PMC) Santiago de Chile (SCL)
Switzerland
Zurich (ZRH) TANSANIA
Dar es Salaam (DAR) TURKEY
Ankara (ESB) Antalya (AYT)
CPQ
GRU
ANF
ASU
GIG
SDU
Bodrum (BJV) Dalaman (DLM)
Istanbul - Kurtköy (SAW)
Istanbul - Sefaköy (IST) Izmir (ADB)
JNB
UNITED KINGDOM
Cancún (CUN) Guadalajara (GDL) Mexicali (MXL)
Belfast (BFS) Birmingham (BHX)
Mexico City (MEX) Monterrey (MTY)
Puerto Vallarta (PVR) San José del Cabo (SJD)
SCL
Netherlands
Bonaire (BON) Curacao (CUR)
RAR
DUR
Blackpool (BLK) Bristol (BRS)
EZE
MVD
Cardiff (CWL) Doncaster (DSA)
CPT
Durham Tees Valley (MME)
Glasgow (GLA) Humberside (HUY)
St. Maarten (SXM)
St. Thomas (STT)
TAO
LHW
Moscow - Domodedovo (DME)
BOG
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)
Shangri-La (DIG) Urumqi (URC) Wenzhou (WNZ)
Xian (XIY) INDIA Bangalore (BLR) Cochin (COK)
PEK
ADB
ITALY Bergamo (BGY)
Shanghai - Hongqiao (SHA) Shanghai - Pudong (PVG)
SAW/IST
Krasnoyarsk (KJA)
TAB
POS
(UK TERRITORY) Grand Cayman (GCM)
Chile Antofagasta (ANF) Puerto
Antilles
FCO
Lithuania Vilnius (VNO)
NORWAY Oslo (OSL) Rygge (RYG)
PORTUGAL Lisboa (LIS)
Russia Chelyabinsk (CEK)
Rio de Janeiro - Santos Dumont (SDU) Salvador (SSA)
Tijuana (TIJ)
AER
Rail Station (XVY) LATVIA Riga (RIX)
Washington - International (IAD) Washington - National (DCA)
São Paulo (GRU) Cayman
Nanjing (NKG) Qingdao (TAO) Sanya (SYX)
SIP
Rail Station (INP) Rome (FCO) Venice - Mestre
GUA
SAL
Santa Ana (SNA) Seattle (SEA) Tampa (TPA) Tulsa (TUL)
Lanzhou (LHW) Lijiang (LJG) Nanchang (KHN)
Milan - Malpensa (MXP) Naples - Central
FLL
MIA
GCM
San Diego (SAN) San Francisco (SFO) San Jose (SJC)
XVY
Nuremberg (NUE) Paderborn (PAD) Stuttgart (STR)
CUN
MEX
Durham (RDU) Sacramento (SMF) Salt Lake City (SLC)
Hefei (HFE) Hong Kong (HKG) Kunming (KMG)
ROW
Leipzig (LEJ) Munich (MUC) Muenster-Osnabrueck (FMO)
SJD
Orlando (MCO) Palm Springs (PSP) Philadelphia (PHL)
Asia /
Pacific
China Beijing (PEK) Chengdu (CTU)
Frankfurt (FRA) Hamburg (HAM) Hanover (HAJ)
ATL
DFW
OVB
CEK
Dunhuang (DNH) Guangzhou (CAN) Hangzhou (HGH)
Dortmund (DTM) Dresden (DRS) Dusseldorf (DUS)
RDU
SVO
DME
VKO
VNO
ZRH
MAD
- Tegel (TXL) Bremen (BRE) Cologne (CGN)
IAD/DCA
LAS
BUR
LAX
ONT
SNA
PSP
SAN
MXL
TIJ
BGY
MXP
Alzey (XZY) Berlin - Schoenefeld (SXF) Berlin
PHL
KJA
RIX
PIK
GLA
Brussels (BRU) Charleroi (CRL) Liege (LGG)
LED
TLL
GOT
EUROPE /
Middle east
/ Africa
ANGOLA
HEL
ARN
NYO
Liverpool (LPL) London - Gatwick (LGW)
PMC
East Midlands (EMA) Edinburgh (EDI)
AKL
Leeds/Bradford (LBA)
London - Heathrow (LHR)
Luton (LTN) Manchester (MAN) Newcastle (NCL)
WLG
Norwich (NWI) Prestwick (PIK) Stansted (STN)
CHC
ZQN
Environmental Management
Measuring performance to guarantee sustainable progress
Over the past 20 years,
LSG Sky Chefs has developed
what today is considered the
in-flight service industry’s most
structured and expansive
approach to Environmental Care.
This approach permeates everything the company does to
ensure wide-scale awareness and continuous improvement
throughout its worldwide organization.
LSG Sky Chefs’ Environmental Policy is the basis of its
environmental activities and contains the mission, guidelines
and key elements of the Environmental Management System.
Ratified in 2008 by the Executive Board, it clearly states the
company’s commitment to preventing pollution, reducing its
environmental footprint, improving its environmental performance
and complying with any related regulations. This policy is
prominently displayed in all Customer Service Centers (CSCs)
around the globe and can be easily accessed by employees,
customers and visitors alike.
In order to measure progress in environmental care, the company
has defined a set of stringent Key Performance Indicators (KPIs)
for energy, water and waste. All wholly-owned LSG Sky Chefs
CSCs worldwide collate this information on an annual basis.
the e-lift trucks
can reduce fuel consumption,
co2 and noise emissions
significantly.
EnviroNmental
successes
Best-practice examples of LSG Sky Chefs’
Environmental Care include:
Energy
A combined heat and power unit in Frankfurt that enables the
Customer Service Center to use the co-generation principle
and produce both electrical and thermal energy with natural
gas. Natural gas is less expensive and more eco-friendly
than other fossil fuels (e.g. coal and oil). The thermal energy
produced as a by-product in the generation of electrical
power is recovered and used for heating the building and the
water used in the dishwashing area of the unit.
Development of an electric driving system for highloader
trucks that includes integrated components like an e-lifting
mechanism for the truck’s cargo area. The e-lift trucks
can reduce fuel consumption, CO2 and noise emissions
significantly. This project is further proof that economic
efficiency and environmental protection do not have to be
exclusive of each other.
Waste
Water/Energy/Chemicals
The Zero-to-Landfill (ZLF)
project in the U.S.
kicked off in 2014 with
the aim of diverting
100 percent of the
recyclable waste from
previously designated
landfills at all of the
41 LSG Sky Chefs
locations across the
country by 2015. The ZLF
program is the first of its kind in
the region, enabling LSG Sky Chefs to substantially reduce its
environmental impact through the implementation
of new recycling methods, state-of-the-art equipment
and comprehensive employee training.
REDUCTION OF
Emissions
Rollout of a custom-designed software tool that measures
a dishwasher’s energy, water, chemical use and temperature.
The software is able to capture data at 16 different points
throughout the dishwashing cycle. If defined target values are
exceeded, the system sends an alert. Today, the system is used
at the majority of LSG Sky Chefs’ facilities around the world.
ENERGY
CONSUMPTION
REDUCTION
WASTE
OF
PER MEAL*
INCREASE OF
recycled
WASTE
as percentage of total waste *
PER SQM *
25%
30%
16%
REDUCTION OF
WATER USAGE
30%
PER MEAL*
*Comparison 2013 vs. 2012
27 | 29
.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... LSG SKY CHEFS | annual review 2014
In the coming years,
innovative products to
LSG Sky Chefs will
logistics and fulfillment.
expand its market
In the future, it will place
proximity and commitment
even more emphasis
in order to meet
on further improving its
customers’ increasingly
service quality, developing
eclectic requirements
new products and
for tailored onboard
concepts based on
service programs and
modern technology
retail models. The
and the acquisition of
company is already
comprehensive insight
capable of covering
about trends and
the entire value chain,
consumer needs in order
from the development
to fulfill its mission of
and procurement of
profitable growth.
Consolidated Income Statement
For the financial year 2014
Group financial
INFormation
2014
k€
Revenue
Other operating income (including changes in inventories)
Staff costs
Depreciation and amortization
Other operating expenses
Total operating expenses
2013
k€
2,633,307
2,513,846
93,391
Total operating income
Cost of materials and services
2014
k€
85,566
2,726,698
2,599,412
-1,156,448
-1,104,177
-964,184
-926,651
-64,740
-62,049
-440,934
-401,719
-2,626,306
-2,494,596
100,392
104,816
8,034
18,440
Interest result
-17,573
-18,177
Other non-operating result
-37,356
-18,945
53,497
86,134
-17,177
-29,194
36,320
56,940
-18,649
-17,039
17,671
39,901
Operating result
Result from investments accounted for using the equity method
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
Executive Board responsibilities
Erdmann Rauer
Chief Executive Officer
Corporate
Functions
Dr. Kristin Neumann
Chief Financial Officer/Labor Director
Jochen Müller
Chief Operating Officer
Communications/
Marketing
Accounting, Controlling and Risk Management
Operational Excellence
Internal Audit
Human Resources
Product Engineering
Legal, Corporate Affairs
and Compliance
Information and Process Management
Marketing and Sales
Mergers and Acquisitions
Strategy and Business
Development
Procurement
SCORE Program
Retail Markets (Ringeltaube)
2014
2013
2012
2011
2010
Revenues (EUR m)
2,633
2,514
2,503
2,299
2,249
100
105
1012)
85
76
32,843
32,307
30,088
29,586
28,499
Operating result (EUR m) 1)
Employees as of Dec. 31
Meals produced
578 million
Customer Service Centers
210
Airports served
214
Countries
51
Companies comprised
159
Customers
more than 300
Corporate Headquarters
Neu-Isenburg (Frankfurt), Germany
Asia Pacific
Executive Board
Eastern Europe/
Middle East/Africa
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
In-flight Equipment Sourcing and Design
In-flight Equipment Logistics
Airport Services
Adjacent market activities
Retail
Train Services
Institutional Catering
Treasury
Onboard Retail
Key Figures
Company Data 2014
Shared Service Center
Regions,
Divisions
and Programs
Key Figures
Europe
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
1) PAGE 34 | 35 .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... LSG SKY CHEFS | annual review 2014
we
deliver
the taste
of the
world
to make
your
customers'
day
better.
LSG Sky Chefs | Corporate Communications | Dornhofstraße 38 | 63263 Neu-Isenburg | Germany
Phone +49 (0)6102 240-880 | Fax +49 (0)6102 240-885 | [email protected] | www.lsgskychefs.com

the Annual Review 2014

Transcription

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