LSG Sky Chefs at InnoTrans 2014 0 Join us on a journey to new horizons
AGENDA 1. WHO WE ARE 2. OUR JOURNEY TO NEW HORIZONS 3. NEW PARTNERSHIP WITH NTV 1 Join us on a journey to new horizons
WHO WE ARE 2 Join us on a journey to new horizons
1.1 ONE-STOP-SHOP ALONG THE TRAVEL CHAIN From pre-boarding to arrival at destination, LSG Sky Chefs is a holistic on-board services partner. We provide a fully comprehensive products and services portfolio to ensure that passengers enjoy a memorable travel experience throughout their journeys. 3 Join us on a journey to new horizons
1.2 OUR PORTFOLIO OF PRODUCTS AND SERVICES We use our creativity to develop high quality and cost efficient solutions that will best fit our customers requirements and always remain focused on their brand identity. Airline Catering Onboard Equipment and Logistics Rail Catering Buy-on-Board Retail Lounges Onboard Management Retail Other Services 4 Join us on a journey to new horizons
1.3 FACTS AND FIGURES Brand Name LSG Sky Chefs Shareholder Lufthansa AG (100%) Group Sales 2013 2.5 bn Market Share 29% Employees 31,375 (excluding JVs) Presence 212 airports in 53 countries 14 train stations in 6 countries Customer Service Centers/ Delivery Points 210 Meals 532 mil (p.a.) Airline Customers over 300 Train Customers 6 Experience more than 70 years 5 Join us on a journey to new horizons
1.4 OUR PARTNERS AROUND THE WORLD 6 Join us on a journey to new horizons
OUR JOURNEY TO NEW HORIZONS 7 Join us on a journey to new horizons
2.1 OUR STORY: BUILDING ON PAST SUCCESSES AND SEEKING NEW OPPORTUNITIES FOR GROWTH LSG founded by Lufthansa LSG acquires 25% in Sky Chefs, Inc.; Launch of common LSG Sky Chefs brand LSG acquires 100% of Sky Chefs Acquisitions in China, South Korea, Belgium, Malaysia and India Expansion of its train services activities in France Expansion of train activities in Italy with NTV 1966 1993 2001 2002-2006 2011 2014 1942 1968-1990 1994-2000 2004 2007-2010 2013 Sky Chefs founded by American Airlines LSG expands into Asia, Italy and Austria; Sky Chefs is purchased by Onex in 1986 and expands into Latin America and Portugal Further expansions to Northern/Eastern Europe, South Africa, Turkey and Switzerland LSG Sky Chefs awarded its first contract in train catering Expansions in Middle-East, Africa and Russia LSG Sky Chefs wins the CAV in Brussels Midi Train Station 8 Join us on a journey to new horizons
2.2 STORY OF THE HIGH-SPEED TRAIN MARKET Today: HST is a mature market, but still run by legacy/public operators Next steps (2015-2020): Emergence of newcomers and competition on fare prices and/or services. HST network still to grow by 5,000 km within Europe. 2000s: the rail network matures and HST take advantage from short-haul flights ( from Paris to Brussels, Lyon, Strasbourg, London, etc.) 1990s: with the development of the HS lines, the HST market grows rapidly Before 1990: clear domination by airplanes for medium and longhaul distances HST = High Speed Trains 9 Join us on a journey to new horizons
2.3 HIGH-SPEED TRAINS COMPETE WITH AIRLINES 100 90 Niche for connecting flights Example: FRA-CDG route 5 years ago 70% air 30% rail Today 70% rail 30% air % of train usage 80 70 60 50 40 30 20 10 Train domination Competition Plane domination Niche for leisure and night trains 0 1 2 3 4 5 6 7 8 9 10 Duration of the journey in hours 10 Join us on a journey to new horizons
2.4 ANOTHER SHIFT IN THE AIRLINE MARKET 1980 1990-2005 2005-2015 2015-2020 Train Train Train Legacy flight Low cost BoB Low cost BoB Low cost BoB Legacy flight Legacy flight Legacy flight 11 Join us on a journey to new horizons
2.5 TRAIN AND AIR TRAFFIC INCREASINGLY SIMILAR Drivers in the market Market Trends Rising price competition between operators Differentiation through service Decreased travel times Increased competition through service Shift of airline passengers to train Increased interconnectivity between travel modes Rising end-customers expectations: reliability, connectivity, mobility Development of on-board retail Increase of food services at stations Comfort & customization as key service differentiators Health & Sustainability LSG Sky Chefs = the perfect match 1. Culinary & Service Excellence 2. Reliable & cost-efficient logistics operations, 3. including crews 4. Innovative & tailor-made end-customer services LSG Sky Chefs supports train operators in their new positioning 12 Join us on a journey to new horizons
2.6 GROWTH IN ANCILLARY TRAIN SERVICES Two macro-segments co-exist in the ancillary services market: - Complimentary - Buy-on-Board (BoB) HST operators show greater tendency to sell ancillary services: - Generate new revenue streams with passengers and - Attract more customers by offering added-value services, such as premium food & drinks, bar service, vending machines, Wi-Fi access, onboard entertainment, welcome service, onboard shopping (cosmetics, duty free items), premium lounge service at stations etc. For the passenger, ancillary services enhance the travelling experience and boost the quality of the journey and the overall customer satisfaction. 13 Join us on a journey to new horizons
2.7 ANCILLARY SERVICES AS KEY DIFFERENTIATORS With HST customers increasingly resembling air travelers, railway companies need to adapt their ancillary services and take on the characteristics of the airline industry (from pre-boarding stage to arrival at destination) Ancillary services are creating a huge shift among rail travel providers with hybrid models to develop - similar to those in the low-cost airline sector -, where a top-quality service for premium classes will co-exist with high-quality BoB ancillary services for the others. BoB services in high-speed trains will gradually develop into genuine retail services. Key differentiators in the HST business 14 Join us on a journey to new horizons
2.8 OUR CURRENT POSITIONING IN EUROPE 15 Join us on a journey to new horizons
2.9 OUR RAIL CUSTOMERS TO DATE 16 Join us on a journey to new horizons
2.10 INSIGHT IN OUR CO-CREATION APPROACH 17 Join us on a journey to new horizons
2.11 OUR KEY DIFFERENTIATORS Culinary Excellence: Our passion for food has a longstanding history and is at the core of our business. For more than 70 years, we have been providing different industries with high-quality and great-value meals and snacks - whether fresh, frozen or ready-to-eat. Global presence and expertise: Every year, we deliver 532 million meals in 53 countries worldwide. This means we have the purchasing power, culinary network and market knowledge to meet our customers specific budget and needs. Equipment & Logistics: Together with our subsidiaries, SPIRIANT and SkyLogistix, we are also an industry leader in equipment and logistics management, with an award-winning design team. Onboard Management: We take care of all aspects of the onboard, pre-boarding and post-boarding experience, presenting passengers with a consistent brand image and the best rail travel experience. Crew Management: The crew members are the brand ambassadors. We support our customers with crew training & motivation and smart target settings in order to create positive travel experiences for the passengers. Tailormade & Intelligently designed: We integrate products and services into one customized onboard concept that communicates our customers individual brand values and engages passengers all along the travel chain. 18 Join us on a journey to new horizons
WELCOME TO NTV 19 Join us on a journey to new horizons
3.1 OUR NEW PARTNERSHIP AT A GLANCE Starting in January 2015 Stations: Naples, Rome and Milan Serving 4.000 passengers a day Complimentary meals and drinks in the Club and Prima Ambience (comparable to First and Business class), and vending machines in the so called Smart segment Food production, beverage supply and trolley packing out of LSG Sky Chefs Milan- Malpensa (MXP) and Rome-Fiumicino (FOC) units, with nightly deliveries to the three train stations Onboard retail project will be kicked-off in co-operation with NTV staff as a first trial on the non-stop service between Milan and Rome. 20 Join us on a journey to new horizons
THANK YOU! COME VISIT US IN HALL 1.1, STAND 523 21 Join us on a journey to new horizons