CONTENTS 02 Letter from the Executive Board

04 LSG Group – Our Integrated Approach

06 LSG Group 2015 – Major Milestones

08 Markets and Competition

10 Business and Strategy

12 Sales and Customers

13 Partnerships and Joint Ventures

14 Products and Services

18 Revenues and Earnings

19 Awards

20 Quality and Food Safety

22 Worldwide Presence

26 Corporate Social Responsibility 27 Environmental Care OUR WILLINGNESS AND ABILITY 29 Environmental Successes TO ADAPT AT PAR WITH THE 30 Outlook RAPIDLY CHANGING MARKET 33 Consolidated Income Statement

34 Executive Board Responsibilities WILL REMAIN CRUCIAL TO OUR 35 Key Figures SUCCESS AND FUTURE. LETTER FROM THE EXECUTIVE BOARD yours sincerely, DEAR READER,

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

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

Going forward, a major priority will be to strengthen our existing partnerships and create new ones that will enable us to enter new markets or enhance our skills. Our willingness and ability to adapt at par with the rapidly changing market will remain crucial to our Erdmann Rauer success and future. In light of that, transformation will continue to be the name of the CHIEF EXECUTIVE OFFICER game throughout 2016. We know that we have the talent and commitment necessary to get this done across our worldwide network. Jochen Müller CHIEF OPERATING OFFICER Dr. Kristin Neumann CHIEF FINANCIAL OFFICER We look forward to continue working with you and defining mutually beneficial oppor- tunities. We would also like to thank you for your continued trust in our company.

PAGE 02 | 03 ...... LSG GROUP | ANNUAL REVIEW 2015 LSG GROUP – OUR INTEGRATED APPROACH

The LSG Group’s rich portfolio includes catering, onboard retail, inflight equipment and logistics, consulting and lounge services for Retail inMotion focuses on the increasingly important onboard retail business, which drives airlines’ airlines. The Group’s dedication to ancillary revenues and reduces inflight costs. Its expertise culinary excellence and expertise encompasses the procurement and distribution of Media inMotion’s portfolio includes hard­ in logistics has enabled it to sucess- buy-on-board products, complete management ware and software solutions for inflight retailment of buy-on-board programs and end-to-end IT support systems, which offer much more variety and The brand stands for the fully enter adjacent markets, like train LSG Group of those programs through proprietary software. choice than traditional inflight entertainment systems. services and convenience retail. combined power of the activities under www.retailinmotion.com These systems also integrate onboard shopping its umbrella. It represents the company’s capabilities, thus providing an additional sales integrated approach and elevates the channel to passengers, as well as broadening the contribution of all group brands. The main range of products and services offered for sale onboard. brands belonging to the www.mediainmotion.aero LSG Group are: is best known as the world’s largest LSG Sky Chefs Oakfield Farms Solutions specializes in -catering company, but actually does a lot more developing, designing and manufacturing pre-packaged than that. We support customers, such as airlines, railway boxed meals from central locations and distributing operators and retailers, with a wide range of services. them to end users within the -retail market. Meal These include retail capabilities, lounge management and boxes are designed to not only hold pre-packaged food, a substantial assortment of food solutions, from traditional The SPIRIANT brand was launched in 2013 to give a but also fresh choices like fruit cups or sandwiches. catering to frozen meals and packaged snacks. fresh face to our equipment division. The product range www.oakfieldfarms.com SCIS Air Security is the leader in airline-catering www.lsgskychefs.com features an array of creatively designed and intelligently security in the U.S. Its portfolio also includes engineered meal-service products, commodities, comfort operations area, aircraft and cargo security, personnel items and inserts. www.spiriant.com screening, inflight entertainment and point-of-sales solutions, duty-free and cash-management services. www.scisairsecurity.com

SkylogistiX, our joint venture with international logistics provider Kuehne + Nagel, designs strategies to streamline logistics and supply-chain management. With a dedicated The Ringeltaube shops can be found at major German , online platform that integrates seamlessly with a company’s offering a huge variety of beverages, perfumes, cosmetics, travel accessories own IT system, an airline can easily monitor the entire inflight and gourmet food exclusively to airport and airline employees. supply chain. www.skylogistix.com www.ringeltaube.de

PAGE 04 | 05 ...... LSG GROUP | ANNUAL REVIEW 2015 LSG GROUP 2015 – MAJOR MILESTONES

GOOD QSAI WTCE DEUTSCHE DESIGN INTEGRATED JFK MYANMAR BAHN AWARDS AWARD PORTFOLIO LOUNGES CONCESSION COOPERATION

At the 2015 Quality and Safety SPIRIANT wins the GOOD DESIGN During the annual World Travel Catering The LSG Sky Chefs Lounge Team The company’s concession and Cooperation with Deutsche Bahn is Alliance In-flight Catering Program Award 2014-2015 for their work & Onboard Services Expo (WTCE), takes over the management of the license agreement at Yangon extended with the introduction of the (QSAI) Awards, the LSG Sky Chefs designing the Premium the LSG Group unveils its integrated Lufthansa lounges at New York’s Mingaladon Airport (RGN), Myanmar, new Intercity 2. LSG Sky Chefs is Munich Customer Service Center is tableware. portfolio of products and services John F. Kennedy Airport. is extended by 10 years. responsible for serving passengers recognized with Medina’s Platinum across all aspects of the travel directly at their seats with a selection Award as the best catering facility chain that are customized to individual of freshly baked goods, sweet and salty worldwide. passenger lifestyles and needs. snacks, as well as hot and cold drinks.

NEW RED VIRGIN GODDARD TAMPA ZEALAND DOT TRAINS JOINT CHICAGO OPENING OPENING AWARD SNACKS VENTURE OPENING

A new state-of-the-art Customer LSG Sky Chefs’ newly built facility SPIRIANT receives the highly esteemed In the UK, Oakfield Farm Solutions The existing joint-venture contract A new CSC opens in the immediate Service Center opens in Tampa, in Auckland, New Zealand, officially Red Dot Award for the Lufthansa acquires new Virgin Trains business with Goddard Enterprises Ltd. is vicinity of Chicago’s O’Hare Airport. Florida, U.S., covering an area of celebrates its grand opening tableware. with an ambient snack-box concept. extended by an additional 20 years. The state-of-the-art facility serves more approximately 30,000 square feet after moving their operations into The trains connect major cities like It comprises 21 locations throughout than 500 flights per day, primarily for (2,700 square meters). the new facility at the end of 2014. London, Birmingham, Manchester, Latin America and the Caribbean. hub-customer . Liverpool, Glasgow and Edinburgh.

SANTIAGO STARBUCKS CIRCLE K OPENING CONTRACT BUSINESS RiM & MiM LSG Sky Chefs breaks ground on a new A new contract with Starbucks marks In the U.S., the company’s global Customer Service Center in Santiago, the company’s entry into the Chinese convenience-retail team acquires new LSG Group acquires the remaining Chile, with a capacity to produce 59,000 convenience-retail market. A new range business with Circle K in the Phoenix, shares in Retail inMotion and meals per day for airline customers, as of products becomes available at Arizona, and Santa Ana, California, full ownership of Media inMotion. well as convenience-retail stores. 60-plus Starbucks stores in major markets. The deal was closed in early 2016. metropolitan areas.

PAGE 06 | 07 ...... LSG GROUP | ANNUAL REVIEW 2015 MARKETS AND COMPETITION Transformation of the business model will ensure the long-term sustainability of the global network

The market and competitive environ- Consequently, onboard-service requirements have changed The LSG Group is addressing this situation with a company- similar portfolio. However, over the past few years a growing and will continue to change significantly. Indeed, they are no wide transformation process aimed at meeting future customer number of logistics and food companies able to generate part ment within which the LSG Group longer limited to food and beverage. They range from innovative and consumer needs. For example, the company is developing of the value chain for airlines have entered the market. operates is still marked by consolidation onboard-retail programs (including inflight-entertainment and implementing holistic and onboard-retail concepts offering on the part of customers and com- options) to hybrid concepts combing onboard-retail and boutique products, entertainment programs and other services The company’s network continued to change during the year complimentary service, depending on class or fare, and high- in addition to traditional inflight catering. These concepts are under review. LSG Sky Chefs opened new units in Tampa and petitors. Passenger figures continue to end culinary experiences designed according to the individual being perceived more and more as a differentiating factor for Chicago, USA, and started building production facilities in rise on a worldwide scale, albeit with needs of passengers and consumers. Additionally, airlines are airlines, as they make it possible for them to create an individual Santiago de Chile, Nairobi, Kenya, and Lagos, Nigeria. marked regional differences. The travel looking for equipment solutions that support their brand values. travel experience for the passenger. In addition, they are an In Vilnius, Lithuania and Moscow-Vnukowo, however, it has And, in an effort to lower costs, they want intelligent logistics extra source of income for carriers. withdrawn because these airline-catering markets are in decline industry in general, however, has a solutions that can help them manage their onboard equipment. due to adverse economic and political conditions. The license much wider portfolio to offer today. In its core business field, airline catering, LSG Sky Chefs is agreement in Yangon, Myanmar, was extended by 10 years. Moreover, airline customer tenders (or bids) are more regularly the market leader with only one global competitor and a small being issued with a modular structure with individual contracts number of local and regional inflight-service providers with a Airlines use very different business models ranging from low- for single-service packages (production, assembly and delivery) cost regional and long-haul carriers to hybrid airlines offering being awarded to different providers. This lowers the bar a choice between flight “packages” or components to pick considerably for providers – in particular food manufacturers from, charter and traditional network carriers. As a matter of and logistics companies – that want to enter the market. As fact, virtually every airline group is presently operating under a result, surplus catering capacities, especially in the mature a variety of models in an effort to serve consumers with the European markets, and competition between airlines generate right offer to fit their particular needs. considerable price and competitive pressures. LONG-HAUL AIRLINES

YOUR CHOICE AIRLINES

HYBRID AIRLINES

LOW-COST AIRLINES

PAGE 08 | 09 ...... LSG GROUP | ANNUAL REVIEW 2015 The Group is increasingly addressing BUSINESS AND STRATEGY new customer segments in markets that are The LSG Group continues to expand and diversify while its business model undergoes transformation adjacent to its core competencies.

With airline catering as its core business, the LSG Group has and LSG acquired its first shares in Sky Chefs. The relationship The company continues to enhance its services in order to companies in Europe, primarily focusing on high-speed train continuously expanded both its portfolio and global presence culminated when LSG acquired Sky Chefs in June of 2001. accommodate the changing requirements of its airline operators who offer a popular alternative to within the over the past few decades. The company is successfully customers. This entails the refinement of its culinary-excellence continent. In the United States, the LSG Group has expanded pursuing its growth strategy in the face of a dynamic market Today, LSG Sky Chefs delivers its services at 211 airports in philosophy in order to widen the variety of ethnic meals it its convenience-retail customer base and is currently taking and highly competitive environment. Beyond the extension of 50 countries. Despite the ups and downs characteristic of offers, which are increasingly in demand. It also involves this business to an international level. In Germany, the Group its wide range of products and concepts for the international the airline and catering industries, the company has steadily gaining the capacity to handle the complete management also has a presence at many airports with its Ringeltaube airline industry, the Group is increasingly addressing new maintained its number-one position through sustainable of onboard retail processes – from analyzing and recording shops, serving airport and airline employees. customer segments in markets that are adjacent to its core management paired with an entrepreneurial mindset. In its two the needs of consumers to the selection of suitable products, competencies – culinary excellence and logistics. Those are home markets, Germany and the United States, the company demand forecasting, steering, providing logistics and sales Furthermore, the company remains committed to continue primarily train operators and convenience-retail store chains. can be found at virtually every major airport. Through mergers processes, as well as invoicing. nurturing its capacity for innovation when it comes to and management contracts, it has constantly expanded its products and processes. In this area, it benefits from its At the end of year 2015, the LSG Group comprised 155 presence in the growth markets of the Latin America, Asia and In addition, the LSG Group continues to expand its activities broad experience dealing with a wildly diverse set of companies. Its parent company is LSG Lufthansa Service Eastern Europe regions over the last two decades. The focus beyond its core competencies through the development and customers and the consumer research it conducts. Holding AG based in Neu-Isenburg, Germany. Since of its current expansion is also on select high-growth countries procurement of functional inflight-service equipment via its the previous year, the lineup of consolidated companies in Africa, where it is entering markets in close cooperation with subsidiary SPIRIANT. It also offers logistics solutions providing In response to the persistent cost pressure and changing experienced a number of changes, such as the first-time local partners. more efficiency in the use of inflight-service equipment through customer requirements, structures and processes are consolidation of a Nigerian catering firm and the SkylogistiX, a joint venture with Kuehne + Nagel. The LSG constantly being reassessed. This helps in standardizing deconsolidation of a Lithuanian company. The airline-catering activities are managed by five regional Group is also increasingly using its network and know-how processes in what is a highly decentralized network, creating management teams with responsibility for North America, Latin to expand in the area of airline-lounge management on an synergies, greater transparency and comparability. It also The LSG Group is managed by a three-member Executive America, Europe, Asia/Pacific and the Emerging Markets. This international level. produces a uniform alignment of service processes for Board that includes Erdmann Rauer as Chief Executive structure ensures that very diverse customer requirements customers who are served worldwide. Additionally, these Officer (CEO since October 2014 and with the company since based on market maturity or growth, expansion opportunities Beyond its airline customers, the LSG Group is successfully reassessments are necessary in transforming the company’s 2006), Dr. Kristin Neumann as Chief Financial Officer (CFO and cultural differences are adequately met. applying its core competencies to reach new customer business model in response to fast-changing market and and with the company since July 2014) and Jochen Müller as groups. Over the past five years, it has built a reputation and customer requirements. Chief Operating Officer (COO and Executive Board member With its core competencies as a basis, the LSG Group applies its solid market positon by serving a growing number of railway since March 2004 and with the company since 2003). The more than 70 years of experience in developing in-flight service composition of the Executive Board represents a strong mix of concepts and processes to broaden its portfolio. The company’s corporate insight, experience from other industries and diverse culinary expertise allows it to meet the highest global food-safety personal backgrounds and skills. and hygiene standards, plus a variety of requirements regarding the authenticity and diversity of ethnic and non-allergenic food. The company’s airline-catering services are marketed Its in-depth logistics and process knowledge also enables the ENHANCE SERVICES dynamic market CULINARY EXCELLENCE worldwide under the long-established “LSG Sky Chefs” LSG Group to develop and implement sales-boosting onboard- ANALYZING CONSUMER NEEDS brand. The brand was launched in 1993 when LSG (formerly retail programs in close cooperation with its subsidiaries Retail Lufthansa Service Gesellschaft) and Sky Chefs (a former inMotion and SCIS Air Security. catering subsidiary of ), the two dominant CHANGINGGROWTH STRATEGY REQUIREMENTSADDRESSING NEW players in their respective markets, established a cooperation highly competitive environment CUSTOMER SEGMENTS

PAGE 10 | 11 ...... LSG GROUP | ANNUAL REVIEW 2015 SALES AND CUSTOMERS PARTNERSHIPS AND JOINT VENTURES A strong retention rate and new business boosted revenues Where global expertise meets local market know-how

Over the past several years, the Existing contracts with numerous airline customers were In addition to its own wide range of airline-catering locations, United Kingdom: Alpha LSG Limited – In 2012, LSG extended or expanded and new ones signed. The extension the LSG Group has had extensive joint ventures with airlines Sky Chefs and Alpha Flight Group joined forces in the highly LSG Group has widened its customer of the contract with at its Detroit hub and SN and local companies for decades, generating access and competitive UK market. Today, they serve 17 airports: London- base significantly by entering into Brussels in Brussels deserve special mention. Furthermore, the networking opportunities in their respective markets. Major Heathrow, London-Gatwick, London-Stansted, Birmingham, partnerships including more than one location span the globe: new adjacent markets. expansion of worldwide contracts with and Manchester, Glasgow, Edinburgh, East Midlands, Newcastle, Japan Airlines, as well with the Thomas Cook Group in Europe Bristol, Cardiff, Doncaster, Luton, Prestwick, Leeds-Bradford, were also noteworthy. At the same time, deliveries to Etihad Russia: Aeromar, the 51/49 joint venture with Russian Aberdeen and Belfast. Its core customer group, airlines, includes all international and increased with new added locations in the U.S. The lounge carrier was established in 1989 at Moscow- many national and regional carriers. New target clients are team was very successful, too. It took over the management Sheremetyevo Airport. Today, it comprises six locations South Korea: The joint venture with was primarily train operators and convenience-store chains. of the Lufthansa lounges in New York, won the contract for the in Rostov on Don, Sheremetyevo, Simferopol, Sochi, established in 2003 with a shareholding of 80 percent. Initially existing and new lounges in Munich and will be catering for all St. Petersburg and Vladivostok and is the number-one limited to the fast-growing Seoul-Incheon airport, today it is also Relationships with roughly 300 airlines vary greatly with regard SWISS Lounges at Zurich Airport as of early 2016. caterer in Russia. In 2012, the LSG Group entered into a present at the other two major airports in South Korea, Seoul- to scope, duration and intensity. Some are global partnerships partnership with Novaport, a Russian airport operator, in Gimpo and Busan. where service is provided at more than 50 locations. Others are Business with convenience-store chains is primarily centered Novosibirsk and Chelyabinsk.. individual customer relationships limited to just a few stations. in the North American market, where the company benefits Japan: In 2014, LSG Sky Chefs entered into a partnership The company’s high service quality, however, is continuously from a competitive advantage based on its many locations China: Thirteen joint ventures with major Chinese airlines, with Cosmo Enterprise Co., Ltd. by acquiring 20 percent of the reaffirmed by the strong retention rate it enjoys and a positive there. In 2015, its business grew with Circle K. However, these authorities and local partners at 19 airports. Established shares from Japan Co., Ltd. The joint venture is net new business performance. retail activities also went global with new Starbucks contracts between 1990 and 2014, they include units in Beijing, Chengdu, present at Tokyo-Narita and -Haneda airports. in Chile and China. Dunhuang, Guangzhou, Hangzhou, Hefei, Hong Kong, Kunming, In fiscal year 2015, demand for airline-catering services and Lanzhou, Lijiang, Nanchang, Nanjing, Sanya, Shanghai-Hongqiao, These and many other local partnerships are mutually beneficial. profit-boosting retail programs rose in general, albeit with Service concepts for railway operators sell particularly well in Shanghai-Pudong, Shangri-La, Urumqi, Wenzhou and Xian. While the LSG Group benefits from the local know-how and regional differences. The LSG Group posted sales increases in Europe because of the extensive network of high-speed lines market access of its partners, these companies gain access to virtually all markets. Only countries in Eastern Europe and select that crisscross the continent and Great Britain. As a result, Latin America/the Caribbean: The partnership with a rich source of expertise in important areas, such as operations, markets in Africa suffered a decline in sales as a result customers Deutsche Bahn in Germany and Virgin Trains in the Goddard Enterprises was founded in 1995 with a shareholding quality and technology, as well as research and development. of adverse economic or political conditions. UK were added to the portfolio. of 49 percent. It comprises 22 locations in 18 countries in Latin America and the Caribbean: Antigua, Barbados, Bermuda, Beyond geographic expansion, the LSG Group has embarked Cayman Islands, Colombia, Ecuador, El Salvador, Grenada, in other important partnerships to enrich its product, logistical Guatemala, Honduras, Jamaica, Netherlands Antilles, Paraguay, and technological expertise, which is indispensable in meeting St. Lucia, Trinidad and Tobago, Uruguay, Venezuela and the changing customer needs. These partnerships are described in U.S. Virgin Islands. In 2015, the agreement was extended by more detail in the Products and Services section of this report. INCREASING another 20 years, until 2035. GROWING Currently, the Group’s partnerships comprise more than Mexico: Aerococina de Mexico was established in 1997 100 global locations. In 2015, non-consolidated revenues with a current shareholding of 51 percent, and it is present in from partnerships amounted to EUR 1.3 billion. RISING Bajio, Cancun, Cozumel, Guadalajara, Merida, Mexicali, Mexico EXPANDING City, Monterrey, Puerto Vallarta, San Jose del Cabo and Tijuana.

PAGE 12 | 13 ...... LSG GROUP | ANNUAL REVIEW 2015 66,000Meals per hour

591Million in Total PRODUCTS AND SERVICES A rich portfolio that continues to evolve

The LSG Group’s commitment to live up to its vision (“To deliver the taste of the world to make your customers’ CATERING ONBOARD day better”) is strongly supported SERVICES RETAIL by the dedication and diversity of its 1The core of LSG Group’s broad scope of activities is its 2Today’s catering requirements also include hybrid concepts and people, comprehensive network proven expertise in airline catering, which spans more than all-encompassing onboard retail programs paired with inflight- and loyal partnerships. 70 years of history and is marketed under the well-established entertainment options. A successful onboard retail offering is one “LSG Sky Chefs” brand name. The company’s culinary that provides passengers with the right product mix, resulting in excellence and experience in day-to-day logistics are the increased customer satisfaction and improved brand perception. The company constantly works on optimizing and expanding two major pillars of this business and have enabled it to enter its range of products and services with the aim of creating an new adjacent markets, such as catering to train operators Through its Retail inMotion and Media inMotion subsidiaries, enjoyable experience for passengers and consumers alike. and delivering prepared foods to convenience-retail stores. the LSG Group is focusing on the increasingly important These efforts are aided by its in-depth understanding of its onboard retail business, which drives airlines’ ancillary revenues customers (airlines, train operators and convenience-retail The company employs more than 700 chefs who are experts and reduces inflight costs. Retail inMotion’s expertise includes chains) and growing knowledge about the end consumer and in a wide variety of cuisines. This allows it to offer authentic the procurement and distribution of buy-on-board products, the trends that influence their behavior. Meeting the needs high-quality meal choices every day and anywhere. Depending complete management of buy-on-board programs and end-to- of customers requires a well-balanced portfolio that can on a customer’s needs, the LSG Sky Chefs’ teams of experts end IT support of those programs through proprietary software. increase consumer satisfaction and addresses their necessity engage in co-creation workshops to identify specific needs Media inMotion’s portfolio includes hardware and software for differentiation while delivering efficiency and generating and opportunities, carry out benchmarking studies and jointly solutions for Inflight Retailment Systems, which offer much more additional revenues. The Group’s portfolio includes: develop creative concepts that are “on brand.” variety and choice than traditional Inflight Entertainment Systems. These systems also integrate onboard shopping capabilities, thus providing an additional sales channel to passengers, as well as broadening the variety of products and services offered for sale onboard.

PAGE 14 | 15 ...... LSG GROUP | ANNUAL REVIEW 2015 LOUNGE SERVICES 6The LSG Group has historically been active in the lounge catering and services business because of the many MEET CUSTOMER NEEDS characteristics it shares with onboard services. Lounge services are the extension of a passenger’s travel experience, EVERY TIME AND EVERYWHERE. pre- and post-flight, and represent an additional touch point. The lounge portfolio features various modules ranging from food and beverage to service, uniforms and equipment. As a one-stop-shop, it delivers a seamless brand experience for passengers and a more efficiently-handled area for the airline or train operator. FOOD EQUIPMENTSOURCING & EQUIPMENT SOLUTIONS DESIGN/DEVELOPMENT LOGISTICS SECURITY 3The LSG Group has developed an extensive line of products 4The LSG Group’s equipment brand, SPIRIANT, is a leading 5SkylogistiX is a joint venture between the LSG Group and that can complement or replace traditional catering solutions, global provider of innovative onboard equipment that meets Kuehne + Nagel, one of the world’s leading logistics providers. SERVICES as well as onboard retail programs: the specific operational needs of airlines and train operators The combination of Kuehne + Nagel's logistics excellence 7SCIS Air Security is recognized in the U.S. as the leader while contributing to building unique brand stories. This proves and LSG’s expertise in equipment management provides in airline-catering security. As customer requirements have Frozen meals: The company operates frozen-food that equipment is a crucial component in turning food into customers a comprehensive operational experience. evolved, the company has expanded its range of products and production units in China, Germany and the U.S. The offering an experience. SPIRIANT’s claim, “Where inspiration meets It addresses an area of airline operations that has often been services to include airport operations area, aircraft and cargo includes more than 900 different dishes representing 100 performance,” reflects this fact. and is still overlooked: creating transparency in materials security, personnel screening, inflight entertainment and point- ethnic varieties. Customers benefit from increased flexibility in management. of-sales solutions, duty-free and cash-management services. terms of availability, high consistency and efficiencies through SPIRIANT has the insight and knowledge necessary to source, high-volume production. design and deliver a variety of product concepts that can meet SkylogistiX offers outsourcing and logistics expertise for the both inspirational and functional requirements, such as weight, supply chain management of inflight-catering equipment, The LSG Group has also created a wide choice of environmental compliance and ergonomics. That includes supported by state-of-the-art, custom-designed IT systems. meal-box solutions through a combination of ownership and meal-service equipment (trays, cutlery and tableware), comfort The aim is to integrate and optimize all elements of the supply RETAIL shareholding in Oakfield Farms Solutions in the U.S. and items (linens and amenities) and galley equipment (trolleys/ chain to minimize total cost without compromising service levels. SHOPS Europe. The packaging design and assortment of nutritional carts and drawers). Green thinking and quality aspects are snacks and meal components can be individually tailored decisive factors throughout the entire process of creating Services include forecasting (demand and order management), 8The Ringeltaube shops can be found at major German to the customer’s needs and brand values. Meal boxes are and delivering tailor-made concepts and products. SPIRIANT transport management by using worldwide logistics networks airports, offering a huge variety of beverages, perfumes, marketed to airlines, train operators and bus companies. products have consistently earned prestigious awards in and warehousing (stock management, inbound quality checks, cosmetics, travel accessories and gourmet food exclusively international design competitions. re-stocking and re-packing of returned deliveries). to airport and airline employees.

PAGE 16 | 17 ...... LSG GROUP | ANNUAL REVIEW 2015 REVENUES AND EARNINGS LSG GROUP Significant revenue growth in a dynamic market environment Proven Excellence

In fiscal year 2015, demand for airline catering services The average number of employees went up to 33,543, meaning Our global network delivers consistent service quality and culinary excellence and profit-yielding retail programs experienced an upswing, 3.1 percent more than the year before. In total, staff costs worldwide. Our customers acknowledge our commitment to excellence through although with regional differences. Despite operating in an climbed by 15.5 percent to EUR 1,113 million. This can be industry as competitive as the airline business, the LSG attributed to the increased business volume and exchange rates. their loyalty and the awards they bestow upon us, such as: Group has managed to improve its performance in terms of increased revenues and EBIT (Earnings Before Interest and The amortization and depreciation ratio dropped to 2.6 percent, 2015 Tax). This success is based on a very solid foundation built by compared to the 2014 figure (3.0 percent). The nominal amount 2015 Air China Best Catering Award | , Germany continuously transforming the company in order to respond slightly rose by EUR 1 million to EUR 80 million. Other operating 2015 Hainan Airlines Outstanding Catering Company | Berlin, Germany to and actively address consumer and customer needs. expenses increased by 21.3 percent to EUR 540 million on a 2015 QSAI Platinum Award for Best Worldwide Airline Catering Facility | Munich, Germany year-to-year basis. This trend is mainly due to a higher business 2015 QSAI Award of Excellence for Europe, Middle East & Africa “Gold Medal” | Munich, Germany As a result, the Group posted sales increases in virtually every volume and currency-related factors. 2015 QSAI Award of Excellence for the Americas “Silver Medal” | Buenos Aires, Argentina Seoul Aviation Authority Ramp Safety/Security Award | Seoul, South Korea market. Eastern European countries and select markets in Philippine Airlines’ Mabuhay Award for Best Airline Caterer in USA, Canada, Australia, and Europe | Toronto, Canada Africa were the exception due in large part to adverse economic The LSG Group achieved an EBIT of EUR 85 million LH Group Innovator Award in “Dare to Try” Category for “Fully Automatic Sandwich Production” | Cologne, Germany or political conditions. Consolidated revenues also increased in 2015, 10 million above the previous year’s figure Oman Air Certificate of Appreciation | Kathmandu, Nepal significantly. Compared to the previous year, they rose by of EUR 75 million. Appreciation of Outstanding Performance | Vancouver, Canada 14.8 percent (adjusted for currency-related factors: + 6.1 percent) Alitalia Best Cuisine At Global Traveler Awards 2015, Magnifica Class | Rome, Italy to EUR 3,022 million in the 2015 financial year. Changes in The adjusted EBIT amounted to EUR 99 million Red Dot Award 2015 for Lufthansa Premium Economy Class Tableware | SPIRIANT the group of consolidated businesses contributed to a growth (compared to EUR 88 million the previous year) and was Virgin America “Caterer of the Year” | Dallas, USA in sales of EUR 13 million. higher than the EBIT, primarily due to extraordinary goodwill amortization and depreciation in Russia and Belgium. 2014 The cost of materials and services rose by EUR 142 million 2014 United Airlines Silver Award in the Premium International Category | Milan, Italy to EUR 1,299 million. This development was mainly driven by 2014 “Outstanding Performance and Service Excellence” | Johannesburg, South Africa higher volumes and exchange rates. The cost of materials 2014 QSAI Platinum Award for Best Worldwide Airline Catering Facility | Munich, Germany ratio slightly went down to 43.0 percent compared to 2014 QSAI Award of Excellence for Europe, Middle East & Africa “Gold Medal” | Munich, Germany 43.9 percent in the previous year. 2014 QSAI Award of Excellence for the Americas “Gold Medal” | Buenos Aires, Argentina 2014 QSAI Award of Excellence for the Americas “Silver Medal” | Bonaire, Netherlands Antilles Delta “Caterer of the Year” as Best Small Kitchen (<500 flights/month) | Anchorage, USA Delta “Caterer of the Year” as Best Medium Kitchen (> 501-999 flights/month) | Mexico City, Mexico Good Design Award 2014 for Lufthansa Premium Economy Class Tableware | SPIRIANT KLM Catering Performance Award 2014 for Africa | Cape Town, South Africa KLM Catering Performance Award 2014 for Americas | Buenos Aires, Argentina Oman Air Certificate of Appreciation for Consistent Performance 2014 | Kathmandu, Nepal Qatar Airways Catering Performance Award 2014 “Account Manager 2014” | Alpha LSG Ltd, London Heathrow, UK Qatar Airways Catering Performance Award 2014 “Best Indian sub-continent Caterer” | Bangalore, India Singapore Airline Excellence Award 2014 | Munich, Germany Travel Plus Gold Winner for LH Children’s Pilotenkoffer Goody Bag | SPIRIANT Travel Plus Gold Winner (Formia & SPIRIANT) for Qatar Airways Amenity Kits | SPIRIANT US Green Building Council (USGBC) for Best of Buildings 2014 | Washington, USA

PAGE 18 | 19 ...... LSG GROUP | ANNUAL REVIEW 2015 QUALITY AND FOOD SAFETY CORPORATE SOCIAL RESPONSIBILITY Quality is the basis for sustainability and continued trust A culture of ethics, diversity and sustainability

One of the major pillars of the The system is constantly being improved to maintain standards Delivering the best in quality and value Furthermore, it is important to point out that there is not a single along the entire supply chain. It adheres to the strictest safety LSG Group “face.” Its more than 34,000 employees hail from LSG Group’s unique selling proposition and performance criteria while incorporating quality assessment to customers and shareholders should more than 100 countries and a rich mix of ethnic backgrounds. is its unwavering commitment to quality and feedback into the production processes. never overshadow the commitment to This lends a unique identity to the company and strengthens and food safety. Providing customers respon­sible corporate citizenship and its ability to compete effectively wherever it operates. The Quality Managers and dedicated experts conduct regular LSG Group understands the value of this unique asset and is with products and services that meet inspections using the Global Quality System at all worldwide environmental stewardship. supportive of its eclectic workforce and broad culture. and exceed their expectations is built locations. To further safeguard the integrity of the company’s into the company’s values. processes, its locations are also tested and assessed through As a result, the LSG Group is able to attract superior talent a series of audits, some of which are conducted unannounced From a purely business perspective, this commitment helps and retain more of its workforce in what is traditionally a by external institutions, state and local authorities, customers contain risks, nurtures employee satisfaction, strengthens high-turnover industry. This translates into better and more Every aspect of the supply chain is meticulously examined, from and third-party vendors. customer loyalty and directly affects the bottom line. By consistent results for its customers. The LSG Group upholds innovation and product development to operations, costs and acting responsibly on a daily basis, the company enhances a set of Company Values designed to promote responsible supplier management. All the while, passenger satisfaction is The company’s catering quality and food safety have earned its repu­tation and earns the respect of the communities in behavior and attitudes. These are: measured with an eye on where quality can be improved even numerous commendations from its customers and other which it operates while creating shared value. more. In collaboration with its business partners and suppliers, parties, including the Medina Quality Awards. In 2015, three Respect the company continuously hones its processes and services LSG Sky Chefs facilities in Munich, Buenos Aires and Bonaire Trust in order to optimize efficiency and increase quality every day, received major recognitions, with Munich being awarded Reaching for Excellence everywhere. Medina’s Platinum Award for best catering facility worldwide. Customer Commitment Innovation This effort is based on the company’s Global Quality System. Economic Health It ensures optimal performance and consistency in four critical areas: A corporation, however, can only be as ethical and responsible as its governance. The LSG Group corporate governance Customer satisfaction is based on the principle of transparency. Decision-making On-time and safety performance GLOBAL is checked against a risk-management system and internal Product and process quality controls to keep all processes on track. Openness and clarity Food safety and aviation security QUALITY also characterize its corporate communications and human SYSTEM resources policies. CUSTOMER SATISFACTION ON-TIME AND SAFETY PERFORMANCE PRODUCT AND PROCESS QUALITY FOOD SAFETY AND AVIATION SECURITY

PAGE 20 | 21 ...... LSG GROUP | ANNUAL REVIEW 2015 WEWE DELIVERDELIVER THETHE TASTETASTE OFOF THETHE WORLDWORLD TOTO MAKEMAKE LSG YOURYOUR CUSTOMERS'CUSTOMERS' GROUP'S DAYDAY WORLDWIDE BETTER.BETTER. PRESENCE

PAGE 22 | 23 ...... LSG GROUP | ANNUAL REVIEW 2015 ANC HEL OSL LED ARN RYG TLL GOT KJA RIX EDI CPH SVO OVB EUROPE / PIK BLL NCL GLA MMX DME CEK MME BFS LBA MIDDLE EAST BLK DSA ASIA / MAN HUY BRE HAM DUB LPL EMA / AFRICA BHX NWI FMO HAJ TXL PACIFIC STN SXF Luanda (LAD) LTN NRN PAD CHINA Beijing (PEK) Chengdu (CTU) ANGOLA BELGIUM CWL LHR ANR DUS DTM DRS BRS LGW OST CGN LEJ ANTWERP (ANR) Brussels (BRU) Charleroi BRU LGG FRA Dunhuang (DNH) Guangzhou (CAN) Hangzhou (HGH) CRL XZY YVR STR (CRL) Liege (LGG) Oostende (OST) MUC Hefei (HFE) Hong Kong (HKG) Kunming (KMG)

SEA BULGARIA Sofia (SOF) DENMARK ZRH ROW Lanzhou (LHW) Lijiang (LJG) Nanchang (KHN) Billund (BLL) Copenhagen (CPH) EGYPT BGY Nanjing (NKG) Qingdao (TAO) Sanya (SYX) PDX MXP SIP MSP Cairo (CAI) ESTONIA Tallinn (TLL) Shanghai - Hongqiao (SHA) Shanghai - Pudong (PVG) YYZ AER URC NORTH YHM VVO BOS FINLAND Helsinki (HEL) FRANCE Paris SOF Shangri-La (DIG) Urumqi (URC) Wenzhou (WNZ) Xian (XIY) ORD DTW JFK FCO AMERICA LGA Alzey (XZY) Berlin - Schoenefeld SAW/IST Bangalore (BLR) Hyderabad (HYD) SLC GERMANY INDIA JAPAN PIT PHL Toronto International (YYZ) ESB DNH PEK CANADA DEN BWI (SXF) Berlin - Tegel (TXL) Bremen (BRE) Cologne (CGN) ADB Tokyo - Haneda (HND) Tokyo - Narita (NRT) SMF LIS IAD/DCA BJV GMP Toronto-Hamilton (YHM) Vancouver (YVR) SFO OAK Dortmund (DTM) Dresden (DRS) Dusseldorf (DUS) AYT ICN MICRONESIA Guam (GUM) Andersen (UAM) SJC DLM UNITED STATES Anchorage (ANC) LAS RDU TAO NRT Frankfurt (FRA) Hamburg (HAM) Hanover (HAJ) LHW PUS Saipan (SPN) MYANMAR Yangon (RGN) BUR CLT HND Atlanta (ATL) Austin (AUS) Baltimore (BWI) Boston LAX ONT DFW Leipzig (LEJ) Munich (MUC) Muenster-Osnabrueck (FMO) XIY NEPAL Kathmandu (KTM) NEW SNA PSP PHX ATL (BOS) Burbank (BUR) Charlotte (CLT) Chicago (ORD) SAN MXL BDA NKG Neu-Isenburg Paderborn (PAD) Stuttgart (STR) KTM HFE ZEALAND Auckland (AKL) Christchurch (CHC) TIJ PVG/SHA Dallas (DFW) Denver (DEN) Detroit (DTW) AUS CTU HGH IAH Weeze (NRN) IRELAND Dublin (DUB) CAI Queenstown (ZQN) Rarotonga (RAR) Wellington (WLG) Fort Lauderdale (FLL) Fort Myers (RSW) Houston MCO KHN WNZ TPA ITALY Bergamo (BGY) Milan - Malpensa (MXP) DIG SOUTH KOREA Busan (PUS) Seoul - Gimpo (GMP) (IAH) Las Vegas (LAS) Los Angeles (LAX) Miami (MIA) RSW FLL LJG MTY MIA Rome (FCO) LATVIA Riga (RIX) Seoul - Incheon (ICN) THAILAND Bangkok - Donmuang (DMK) Minneapolis (MSP) New York - JFK (JFK) New York - La KMG Oslo (OSL) Rygge (RYG) CAN Bangkok - Suvarnabhumi (BKK) Pattaya U-Tapao (UTP) SJD NORWAY Guardia (LGA) Oakland (OAK) Ontario (ONT) Orlando (MCO) HKG BJX CUN STT PORTUGAL Lisboa (LIS) Palm Springs (PSP) Philadelphia (PHL) Phoenix (PHX) PVR GDL SXM GCM MBJ RUSSIA Chelyabinsk (CEK) MEX ANU Pittsburgh (PIT) Portland (PDX) Raleigh-Durham (RDU) KIN SYX Krasnoyarsk (KJA) HYD RGN Sacramento (SMF) Salt Lake City (SLC) GUA Moscow - Sheremetyevo (SVO) SPN SAL DMK BKK San Diego (SAN) San Francisco (SFO) San Jose (SJC) UVF GUM BON BGI Moscow-Domodedovo (DME) BLR CUR GND Santa Ana (SNA) Seattle (SEA) Tampa (TPA) TAB Novosibirsk (OVB) Rostov-on-Don (ROV) UTP Washington - International (IAD) Washington - National (DCA) PTY CCS PMV POS Simferopol (SIP) Sochi (AER) UAM St. Petersburg (LED) Vladivostok (VVO) LATIN AMERICA ANTIGUA BOG SOUTH AFRICA Cape Town (CPT) & BARBUDA Antigua (ANU) ARGENTINA Buenos Aires Durban (DUR) Johannesburg (JNB) (EZE) BARBADOS Barbados (BGI) BERMUDA (UK UIO BEL SWEDEN Gothenburg (GOT) Malmo (MMX) Stockholm - TERRITORY) Bermuda (BDA) BRAZIL Belém (BEL) GYE Arlanda (ARN) FOR Campinas (CPQ) Fortaleza (FOR) Natal (NAT) Recife (REC)

NAT SWITZERLAND Rio de Janeiro - International (GIG) Zurich (ZRH) TANZANIA Dar es Salaam (DAR) DAR Rio de Janeiro - Santos Dumont (SDU) REC LAD TURKEY Ankara (ESB) Antalya (AYT) Salvador (SSA) São Paulo (GRU) CAYMAN Bodrum (BJV) Dalaman (DLM) ISLANDS (UK TERRITORY) Grand SSA Istanbul - Kurtköy (SAW) Cayman (GCM) CHILE Antofagasta (ANF) Istanbul - Sefaköy (IST) Izmir (ADB) Santiago de Chile (SCL) COLOMBIA Santa UNITED KINGDOM Fe de Bogotá (BOG) ECUADOR Guayaquil (GYE) Belfast (BFS) Birmingham (BHX) Quito (UIO) EL SALVADOR San Salvador (SAL) GIG RAR CPQ SDU Blackpool (BLK) ANF GRENADA Grenada (GND) GUATEMALA GRU ASU Bristol (BRS) Cardiff (CWL) Guatemala City (GUA) HONDURAS JNB Doncaster (DSA) Durham Tees San Pedro Sula (SAP) JAMAICA Kingston (KIN) Valley (MME) East Midlands (EMA) Montego Bay (MBJ) MEXICO Bajio (BJX) DUR Edinburgh (EDI) Glasgow (GLA) Cancún (CUN) Guadalajara (GDL) Mexicali (MXL) SCL Humberside (HUY) Leeds CPT Mexico City (MEX) Monterrey (MTY) EZE MVD Bradford (LBA) Puerto Vallarta (PVR) San José del Cabo (SJD) Tijuana (TIJ) Liverpool (LPL) AKL NETHERLANDS ANTILLES Bonaire (BON) London - Gatwick (LGW) Curacao (CUR) St. Maarten (SXM) PANAMA London - Heathrow (LHR) WLG Panama City (PTY) PARAGUAY Asunción (ASU) Luton (LTN) Manchester (MAN) Newcastle (NCL) Norwich (NWI) Prestwick (PIK) Stansted (STN) ST. LUCIA St. Lucia (UVF) TRINIDAD CHC

& TOBAGO Port of Spain (POS) Tobago (TAB) ZQN URUGUAY Montevideo (MVD) VENEZUELA Caracas (CCS) Isla Margarita (PMV) VIRGIN ISLANDS (US TERRITORY) St. Thomas (STT) ENVIRONMENTAL CARE The Group’s Environmental Management ENVIRONMENTAL A systematic approach for continuous improvement System serves as an important tool for optimizing regional environmental activities. SUCCESSES

Over more than 20 years, the ENERGY LSG Group has developed what SENSORS REDUCE ELECTRICITY CONSUMPTION today is considered the inflight IN REFRIGERATION UNITS service industry’s most structured The company ran several pilot tests with eTemp®, a thermostat REDUCTION and expansive approach to that helps refrigeration units operate more efficiently. Unlike OF traditional thermostats, eTemp does not respond to minor ENERGY environmental care. temperature fluctuations and only registers significant changes. CONSUMPTION In 2014/2015, it was installed in 38 customer service centers, 33 % leading to savings of 547,558 kWh and reductions in carbon EMISSIONS PER 33% This approach permeates everything the company does to MEAL dioxide emissions amounting to 437 tons. According to the LEEN 100 – SHARING IDEAS FOR MORE ENERGY ensure widescale environmental awareness and continuous EPA (the U.S. Environmental Protection Agency), these energy EFFICIENCY AND FEWER EMISSIONS improvement throughout its worldwide organization. It is also savings are the equivalent of planting 80.6 designed to meet customer and shareholder expectations acres of pine forest every year. regarding environmental care. One of the company’s Frankfurt, Germany, facilities is a member of the Learning Energy Efficiency Network (LEEN 100), a The LSG Group’s Environmental Policy is the basis of its activities WASTE network of various industries connected to exchange best in this area and contains the mission, guidelines and key TURNING ORGANIC practices about how to contribute to reducing CO2 emissions elements of its Environmental Management System. The LSG WASTE INTO WATER in the Frankfurt area and increase the proportion of renewable Group Environmental System Manual provides all operational energy. Based on the experience of the first 30 LEEN networks, units with the information they need to abide by the policy, such In North America, the participants on average doubled their energy efficiency as clear definitions of the key performance indicators (KPIs) company implemented compared to non-participants. 23 % for energy, water and waste and the standard procedures for new technology to 23 % an environmental assessment. It serves as an important tool convert organic waste REDUCTION for optimizing regional environmental activities. into water. The technology, CHEMICALS developed by EnviroPure, is a CHEMICAL STORAGE IN SÃO PAULO – OF WASTE PER MEAL REDUCTION A GLOBAL SHOWCASE Best-Practice Examples self-contained, aerobic food-waste OF Knowledge-sharing invariably has a positive effect on an decomposition system that eliminates it on-site. EnviroPure can WATER USAGE organization. The company’s best-practice intranet site fosters handle virtually any kind of food waste, including vegetables, fruit, Our global Green Assessment in 2013 and 2014 revealed that PER the exchange of knowledge between the regions and promotes meat, fish, poultry, dairy products, bones, shells and pits, with chemical-product storage in many units needed improvement. MEAL constant improvement throughout the LSG Group. decomposition occurring within 24 to 48 hours. The technology Together with Diversey, LSG Group’s worldwide partner for also eliminates odors and does not require sanitation, vermin chemical supplies, the São Paulo, Brazil, unit developed or insect-control measures. The carbon dioxide generated from an action plan for a chemical-product storage showcase. It the system is biogenic, so it does not contribute to greenhouse included best practices for hygiene and cleaning training and gases and global warming. Between January 2014 and July led to the implementation of five rules for safe storage and 2015, the system diverted 424 tons of organic waste from landfill chemical disposal. The aim is to implement these showcase at the first two participating CSCs. principles at every LSG Group unit worldwide. 4545% %

PAGE 27 – 29 ...... LSG GROUP | ANNUAL REVIEW...... 2015 ...... LSG GROUP | ANNUAL REVIEW 2015 Consolidation within the industry will continue, both from a customer and a competitor perspective. Consequently, cost and price pressures will keep dominating the market environment.

For fiscal year 2016, the LSG Group expects revenues and an adjusted EBIT slightly above the previous year’s level. The result will be burdened by one-time expenses related to the transformation of the business model, particularly in Europe and North America. The programs that have already been initiated in order to improve performance and seek expansion into adjacent markets will be pursued further. CONSOLIDATED INCOME STATEMENT For the financial year 2015

2015 2015 2014*

GROUP FINANCIAL k € k € k € INFORMATION Revenue 3,022,006 2,633,307 Other operating income (including changes in inventories) 73,158 73,702

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

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

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

Depreciation and amortization -80,081 -78,608

Other operating expenses -539,917 -444,731

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

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

Investment Result 21,802 12,148

EBIT 85,402 75,178

Adjusted EBIT 98,925 87,508

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

PAGE 32 | 33 ...... LSG GROUP | ANNUAL REVIEW 2015 EXECUTIVE BOARD RESPONSIBILITIES KEY FIGURES

Key Figures 2015 2014 2013 2012 2011 Erdmann Rauer Dr. Kristin Neumann Jochen Müller Chief Executive Officer Chief Financial Officer/Labor Director Chief Operating Officer Revenues (EUR m) 3,022 2,633 2,514 2,503 2,299

Operating result (EUR m) 1) 78 100 105 1012) 85 Corporate Communications Accounting, Controlling and Risk Management Culinary Excellence EBIT4) 85 75 107 - - Functions Internal Audit Human Resources Operational Excellence Employees as of Dec. 31 34,310 32,843 32,307 30,088 29,586

Legal, Corporate Affairs Information and Process Management Company Data 2015 and Compliance Meals produced 591 million Sales, Product and Mergers & Acquisitions and Subsidiaries Marketing Customer Service Centers 201 Airports served 211 Strategy and Business Product Engeneering, Development Procurement & Supply Chain Countries 50 Companies comprised 155 Treasury Customers more than 300 Regions, Retail Outlets (Ringeltaube) Asia / Pacific Corporate Headquarters Neu-Isenburg (Frankfurt), Germany Divisions Eastern Europe/ Executive Board Erdmann Rauer, Chief Executive Officer Middle East/Africa Dr. Kristin Neumann, Chief Financial Officer Jochen Müller, Chief Operating Officer Europe Supervisory Board Simone Menne (Chairman), Prof. Dr. Ingrid Göpfert, Dr. Reinhold Huber, Dirk Reich, 3) 3) Latin America Axel Tillman, Dr. Bettina Volkens, Gerold Schaub (Deputy), Frauke Bendokat , Mathias Kilzer 3), Paul Laslop 3), Michael Rüschenbaum 3), Christina Weber 3) North America Core-business activities Catering and Onboard Retail Inflight-Equipment Sourcing and Design Air Security Inflight-Equipment Logistics Airport Services Lounges Adjacent-market activities Convenience Retail SPIRIANT Train Services Institutional Catering

1 ) Result from operating activities minus book profits (and losses), write-backs of provisions, currency gains and losses on valuation at the balance sheet date of long-term financial liabilities, and other periodic expenses and income 2 ) 2012 numbers are restated due to a change in IFRS accounting standards in connection with employee benefits 3 ) Employee Representative 4 ) Due to the new Lufthansa reporting method, future earnings will be reported as EBIT.

PAGE 34 | 35 ...... LSG GROUP | ANNUAL REVIEW 2015

WE DELIVER THE TASTE OF THE WORLD TO MAKE YOUR CUSTOMERS' DAY BETTER. LSG Group | Corporate Communications | Dornhofstraße 38 | 63263 Neu-Isenburg | Germany Phone +49 (0)6102 240-880 | Fax +49 (0)6102 240-885 | [email protected] | www.lsg-group.com