Newrest ActivityReport 2015/16 (UK) by Newrest

ACTIVITY REPORT 2015 ∙ 2016

With origins in Group Catair in 1996, and founded by its Co-CEO’s Olivier Sadran and Jonathan Stent-Torriani in Toulouse (France), Newrest is today a global leader in multi-sector catering. With 2015/16 revenues under management of almost 1.7 Billion Euros and more than 29,500 employees worldwide, Newrest is present in 48 countries.

A CT I V I T Y R E P O RT 2015 ∙ 1 6

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Newrest is the only major catering company active in all catering and related hospitality segments including airline catering, rail catering, contract catering, concession retail, buy-on-board, Remote site and support services.

The skipper Fabrice Amedeo on Newrest ‒ Matmut’s board, training for the 2016/17 Vendée Globe race, by Jean-Marie Liot.

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SUMMARY

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▼ G R OUP P R ESENTATI ON

P. 06

N E W R E ST I S . . .

GROUP ACTIVITIES

P. 22

P. 008

H I STO R Y P. 010 G R O U P ST R U CT U R E P. 012 GLOBAL NETWORK

P. 014

KEY FIGURES

P. 016

SHAREHOLDER ST R U CT U R E P. 017 EXECUTIVE BOARD

▼

P. 018

O R G A N I Z AT I O N C H A RT P. 020

OPERATING PERFORMANCE

P. 44

I N F L I G H T P. 024

K E Y E V E N TS

P. 046

C AT E R I N G & REMOTE SITE

FRANCE DIVISION

P. 048

R A I L P. 036

E U R O P E & N O RT H AMERICA DIVISION

P. 054

R E TA I L P. 040

N O RT H A F R I C A D I V I S I O N P. 068

P. 030

SOUTHERN AFRICA D I V I S I O N P. 078 M I D D L E - E A ST & ASIA DIVISION

P. 090

L AT I N A M E R I C A & O C E A N I A D I V I S I O N P. 096

003

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G R OUP COMMI TMENTS

P. 106

N E W R E ST ’ S CO M M I T M E N TS … TO I TS C L I E N TS A N D CO N S U M E R S

P. 108

TO I TS E M P L O Y E E S

P. 114

TO I TS PA R T N E R S

P. 120

TO I TS S O C I A L E N V I R O N M E N T P. 122 TO T H E P L A N E T

P. 127

Newrest celebrates its 10th anniversary in one of its Greek’s point of sale ▼

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I N T R O D U CT I O N Airplane's delivery for American Airlines – Athens airport (ATH), Greece ▶

1,118.5 M€

1,693.6 M €

Consolidated sales 2015∙16

Sales under management 2015∙16

▲ + 19.8%

Consolidated operating profit 2015∙16

2015/16 was a record year for Newrest Group, despite an uncertain and challenging global landscape. Global sales grew by 19.8%, reaching a managed turnover level of almost 1.7 Billion Euros. Most encouragingly, despite the challenging international markets, organic growth represented more than 13% of the total year-on-year growth. Operating profit grew in concert with top line improvement and free cash flow was above our expectations. In all, this was a year of progress, balancing sales growth with diversification, people and business development, and financial stability. We believe we are a more energized, focused and cost-effective company today.

markets. Notwithstanding that environment, the Group made strong progress, increasing investments in assets, development and innovation, and improving its productivity and overall cost structure. The Inflight catering market was perturbed by the offer from HNA to purchase both Gate Gourmet and Servair - transactions which had not been finalized at the time of writing -, a potentially significant step in further Inflight catering consolidation in Europe and Africa.

The year started in the midst of a steep decline in global oil & gas and mineral prices, which, while beneficial for some, significantly hurt our customers in the Remote site sector, whilst providing an improved market for capacity growth and profitability in the Airline sector. It also opened up new opportunities for us in challenging, long-established positions in the Remote site sector. Economic and political disruptions, a major refugee crisis, particularly in Europe, North Africa and Syria, as well as foreign exchange instability in a number of developing economies, heightened tensions and difficulties in global

The year had a number of highlights and we have embarked upon a bold entrance into the contract catering market in Europe with the acquisition of Apetito and a joint venture with Coralys in France. We increased our shareholding in ASL Nigeria, one of Africa’s key markets, took over its management and introduced the Newrest ASL brand in the country. We started new operations in Colombia, including the construction of a new Inflight catering unit, and shall soon commence operations in multi-sector catering. We have opened new units in the United Kingdom in Southampton and Manchester, bringing

our area of operations in the United Kingdom to an amazing 8 units. We have introduced a new ‘Bistro du Chef’ concept aboard, by Michelin-starred chef Michel Sarran, for our client SNCF on their high speed train rail network. As the world leader in Rail catering, we have further strengthened our partnership with SNCF with the addition of additional logistics contracts. We have continued to pursue our key objectives of sustainable and constant improvement in quality and process. We have restructured our organization in order to consolidate our gains and prepare for the future. Our business in France has become a standalone division, separated from Europe due to its size, complexity and strategic importance to the Group. The mother organization has been strengthened with the launch of two new support services in Digital and On Board Services & Products. We have built a new brand, TRE3, which will be the focus of product & service innovation and development, as well as integration capability, for the future. We are focusing on enhancing our skills by investing in a centrally driven ‘GM Incubator’ project, tasked with the goal of developing at least 30 skilled general/operational manager level employees, who will incorporate Newrest core values, over the next 3-years. We have the strategic objective of developing management skills from within, whilst always benchmarking our performance with the external marketplaces. We are investing in our people in terms of training and career enhancement, as well as growing our management stock ownership & retention plan aggressively on an annual basis. In Operations, we had a year marked by substantial improvement in productivity and cost structure reductions. In Quality, we have re-iterated our focus on enhancing our capabilities, be it in culinary creativity & production, service delivery, innovation or logistics, and remain committed to having our entire network ISO certified in the next 24-months. Our supply chain transformation is still in its early stages; we are focusing on regional aggregation of purchasing volumes while at the same time centering sourcing around our customers, integrating further into local communities, providing better traceability, and having a more responsible process for sustainability in the supply chain. We continue to strive to reduce overheads, using our multi-sector activities to create synergies, and are committed to ensuring we are best-in-class in competitivity in all of our country operations. Finally, in financial systems, we remain

committed to having strict and disciplined controls and procedures in place for all of our operations in order to foster an environment of transparency, efficiency and security for our company, as well to assure that cash flow is optimized at all times. We have set our sights on transforming Newrest into a new and modern Digital organization in order to take advantage of the huge change involving social media, the use of smartphones and digital ordering technology, as well as customer behavior and consumption trends. We are investing significantly in ‘killer’ apps in order to facilitate all steps of the ordering and fulfillment process for our clients, and to provide them with live information on their product choices, waiting times, content or even lifestyle options. While the customer fulfillment process is essential, this also allows us to optimize our supply chain, logistics and operations processes. We are convinced our commitment to Digital will drive strategic agility and bring major advantages for our company in the future. These results attest to the hard work of everyone in our organization and highlight our unwavering determination to succeed. We are encouraged and optimistic for the future in 2016/17, with strong steps forward in the development of our activities geographically and in our 4 key catering sectors. At the time of writing, on December 20th, our friend and partner, Fabrice Amedeo, has just rounded Cape Leeuwin in Australia, with a freezing deck and 50-knot winds, carrying with him the names of our 2014/15 28,000 Newrest employees on his mast, and representing all of the qualities that we hope to aspire to as a Group: humility, courage, hard-work, dedication, professionalism, ambition and solidarity. “Fabrice, we salute your courage and determination, as well as your impeccable professionalism, and look forward to welcoming you in person at Les Sables d’Olonne in the near future.” We thank our clients, staff and partners for their loyalty and look forward to continued development with you in the future.

Olivier Sadran

Jonathan Stent-Torriani

Activit y Repor t 2015 ∙ 1 6 ▶ Introduc tion

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G R O U P P R E S E N TAT I O N

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A part of the food offer in the Alfursan lounge of Riyadh airport (RUH) – Saudi Arabia ◀

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N E W R E ST I S . . .

A CT I V I T Y S E CTO R S

1,000,000 MEALS SERVED PER DAY

Activit y Repor t 2015 ∙ 1 6 ▶ 01 Group Presentation

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CO U N T R I E S

1,118.5 M € Consolidated sales 2015∙16

1,693.6 M €

€

Sales under management 2015∙16

29,500 EMPLOYEES

010

H I STO R Y

1996

2005

Acquisition of ‘Compagnie des wagons-lits’

C R E AT I O N O F C ATA I R

by Olivier Sadran

C R E AT I O N OF NEWREST

Acquisition of Airshop

2010

2001 Merger of Catair with Eurest Inflight (Compass inflight catering division)

2006 Opening of the inflight catering unit at Paris Charles de Gaulle

2008 Joint venture with Saudia Catering in Saudi Arabia, and Wacasco in Oman Acquisition of LSG Sky Chefs in Spain

14 COU NTR I E S

28 COU NTR I E S

2 ACTI VI TY S E CTORS

4 ACTI VI TY S E CTORS

8,000

12,100 E MPLOY E E S

E MPLOY E E S

2016

Joint venture dnata Newrest in South Africa and Newrest Gulf in Qatar, Kuwait, Bahrain and UEA Award of SNCF train contract in France

Newrest celebrates its 10th Anniversary Acquisition of Casa Phillips in Costa Rica Starting of operations in New Caledonia

2013

2012 Joint venture with SOS in the Philippines and Red Med in Algeria I PO Saudia Airlines Catering

2015

2014 Acquisition of Atasa in Morocco Acquisition of 100% of First Catering in Ghana, Zambia and RSA

46 CO U N T R I E S

49 COU NTR I E S

5 ACT I V I TY S E CTO RS

5 ACTI VI TY S E CTORS

23,000 E M P LOY E E S

28,000 E MPLOY E E S

Acquisition of Apetito and joint venture with Coralys in France Joint venture with ASL in Nigeria Starting of operations in Colombia

Activit y Repor t 2015 ∙ 1 6 ▶ 01 Group Presentation

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012

G R O U P ST R U CT U R E TUR N OVER BY B USINESS (Managed ∙ excluding Saudia Catering)

42.5% IN F LIGHT

3.0% R E TA I L

30.8% CATERIN G &

23.7% RA I L

REMOTE SITE

I NFLI G HT

31 CO U N T R I E S *Managed turnover excluding Saudia Catering

CATERING & REM OTE SITE

25 COU NTR I E S

485.9 M€

19 COU NTR I E S

352.4 M€ Turnover*

Turnover*

ACTI V I TI ES

ACTIVITIES

• C atering • V IP Catering • B uy on board • D uty free on board • L ounges • I ntegrated mangagement services • L ogistics

Catering in: • C ompanies • A dministration • Education • H ealth system • Facility management

•C amp construction & management • H otel services • C atering • L eisure • Facility management

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SUBS I DA R I E S

SUBSIDARY

• Newrest Inflight • TRE 3

Newrest Catering

Newrest Remote site

ACTI VITY DISTRIB UTION (Distribution by activity sector in 2015/16)

48.2% IN F LIGHT

3.4% R E TA I L

28.1% RAIL

20.3% CATE R I NG &

R E M OTE SI TE

RAI L

RETAIL

4 CO U N T R I E S

16 COU NTR I E S

272.2 M€ Turnover*

34.0 M€ Turnover*

ACT I V I TI ES

ACTIVITIES

• C atering •H otel services • L ogistics •S ervices to passengers (B to C) •C ounsel & technical assistance (B to B)

• Proprietary brands • I nternational franchises • L ocal franchises • B ars, shops and restaurants in airports, at highway service stations, on board ships, inside museums and at bus terminals

▼

S UBS I DA RY

SUBSIDARY

Newrest Wagons-Lits

Newrest Retail

Activit y Repor t 2015 ∙ 1 6 ▶ 01 Group Presentation

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014

GLOBAL NETWORK

EUROPE & NORTH AMERICA

CO U N T R I E S

Austria Belgium Canada Croatia Cyprus Greece The Netherlands Portugal Spain Switzerland United Kingdom United States of America new

F RANCE France French West Indies Reunion Island

MIDDL E-EAST & ASIA Bahrain Oman Philippines Qatar Saudi Arabia United Arab Emirates

L ATI N AM E R I C A & O C E AN I A

AFR I CA N O RT H AFRICA

SOUTHERN AFRICA

Bolivia Chile Colombia new Costa Rica French Polynesia Mexico New Caledonia Panama Peru

Algeria Egypt Ghana Guinea-Conakry Morocco Niger Nigeria Tunisia

Angola Cameroon Congo-Brazzaville Gabon Madagascar Mozambique South Africa Tanzania Uganda Zambia

Activit y Repor t 2015 ∙ 1 6 ▶ 01 Group Presentation

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TUR NOVER BY DIVISION (Managed turnover 2015/ 1 6)

18.0%

EU R O P E & N O RTH AMERICA

9.4%

NO RT H AF RICA

24.3% FRA NCE

7.5%

L AT I N A MERICA & O CEAN IA

4.6%

S O U T H E R N AF RICA

36.2%

M I DDLE -E A ST & A SI A

G R OUP ’S TUR NOVER EVOLUTION BY DIVISION (Managed turnover between 2014/ 1 5 and 2015/ 1 6)

F RANCE

EU RO P E & NO RT H A MERIC A

NO RT H A F R I CA

SOUTH E R N A F R I CA

L ATI N A M E R I CA & OCE A N I A

M I D D L E - E A ST & A SI A

▲ +6.2%

▲ +15.2%

600 M€

4 00 M€

▲ +18.0% ▲ +35.1% ▼ -6.7%

200 M€

▲ +24.3%

0 M€ 2 0 15 / 1 6 : 4 1 2. 3 M€ 2 0 14 / 1 5 : 35 7. 8 M€

201 5/ 16: 305. 2 M€ 20 1 4/ 15: 25 8. 6 M€

201 5/ 16: 158.4 M€ 20 1 4/ 15: 117.2 M€

2015/16: 78.0 M€ 20 14/15: 83.6 M€

2015/16: 126.2 M€ 20 14/15: 101.6 M€

2015/16: 613.4 M€ 2014 /15: 576.1 M€

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KEY FIGURES G R OUP ’S TURNOVER EVOLUTION (in million euros)

1,693.6

1,800 M€

0 M€

307.1

2006/ 07

2009/10

987.3 662.0

2008/ 09

595.1

893.9 2 0 0 4 / 0 5 2 0 0 5 / 06

282.1

261.0

241.5

196.0

200 M€

569.5

638.6 384.6

2007/ 08

4 00 M€

432.1

618.2 372.6

6 00 M€

716.0

800 M€

201 0/11

1,085.0

1,00 0 M€

880.3

1,20 0 M€

954.9

1,318.5

1,40 0 M€

1,118.5

1,495.0

1,6 0 0 M€

2011/1 2

2012/13

2013/14

2014/15

2015/16

■ Consolidated turnover ¦ ■ Managed turnover (including Saudia Catering)

SAUD I A C ATER ING’ S TURNOVER EVOLUTION (Not consolidated, minority shareholding under Newrest management)

2010

69 %

2009

69 %

75 %

2008

272 M$

383 M$

72 %

313 M$

77 %

200 M$

84 %

236 M$

284 M$

80 %

40 0 M$

69 %

446 M$

597 M$

617 M$

67 %

542 M$

555 M$

67 %

6 00 M$

0 M$ 2007

2011

2012

2013

■ Airline Catering ¦ ■ Other activities

2014

2015

2016

G R OUP ’S FI V E MAJ OR COUNTRIES TURNOVERS (% of Group’s total managed turnover 2015/ 1 6 ∙ excluding Saudia Catering)

F RAN CE

35.2% 402.5 M€

SPAIN

PE R U

3.4% 39.4 M€ G R E E CE

10.9%

3.7%

OT H E R CO UN TRIES

M OR OCCO

124.2 M€

39.9% 456.2 M€

42.8 M€

6.9 % 79.4 M€

S H A R E H O L D E R S ST R U CT U R E A solid economic development of a company requires a solid shareholder structure. Newrest Group’s capital is majority-owned by its management – Newrest is held at 90.4% by over 300 managers – with the

remaining shares held by trusted private investors. The company is therefore in control of its strategic choices – and shall continue to choose long-term sustainable development over short-term gains.

9.6 %

FI N A NCIAL I N V ESTORS :

5.3 %

NA X I C A P PA RTN ERS

2.8 %

A R D I A N ( E X . A X A PE)

1.5 %

B NP PA R I BAS DVP

90.4 % M A N AGEM EN T

Activit y Repor t 2015 ∙ 1 6 ▶ 01 Group Presentation

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EXECUTIVE BOARD

▶

1OLIVIER SADRAN

2JONATHAN STENT-TORRIANI

Olivier Sadran is the founder of Catair in France in 1996 and was principally responsible for the development of the company under the name of Eurest Inflight Services. French entrepreneur, he is the principal shareholder of several French companies in different sectors.

Previously CEO of Compass Group Southern Europe, and partner of Olivier Sadran in a number of ventures, he brings his strategic and senior management experience acquired over numerous years in the airline catering, industrial catering and hotel services industries to the Group.

3André RODIONOFF

4 P ierre BRUGÈRE

5 Pascal REGIMBAUD

6Jessica HAYES

After many years of experience in airlines (United Airlines, Air France, UTA), airline catering and concession contract companies (LSG, Elior), Pierre Brugère joined Newrest in 2007. Previously Vice President of Europe, Pierre has now the commercial responsibility for all activity sectors. He is based in Toulouse, France.

Pascal was in charge of operations and later of the commercial department for Universal Sodexo, before being in charge of the commercial division of CIS. He joined Newrest in 2008 in order to develop the Remote site Division, bringing new competence and know-how. Pascal is based in Toulouse, France.

After having graduated from International Management and gathered years of experience in the hotel industry working for Marriot Hotels, Jessica joined Newrest – formerly Catair – in 2002. She held several financial and commercial positions before being promoted to Commercial Director for inflight and rail in 2015. Jessica is based in Toulouse, France.

8Emmanuelle BOCC AR D O PUIG

9 Olivier SUAREZ

10 O livier L AURAC

Olivier works for the Group since 1998. Graduated in International Public Law, he hold several positions from Commercial and Country Manager (France, Spain) to Country Manager Morocco and in charge of North Africa Division. Olivier is today Vice President Europe & North America. He is based in Toulouse, France.

Graduated of Science Specialization Finance, Olivier worked in several countries around the world. He was recruited in 2008, and held positions as Countr y Manager in Oman, Angola and COO in South Africa Division. Olivier is now Vice President in char ge of L atin A m er ic a & Oceania Division. He is based in Santiago de Chile, Chile.

13 A l e x a n d r e L EL IÈVRE

14 X a v i e r PA L A I S E

Graduated of finance at Rouen Business School, Alexandre worked 5 years as Senior Auditor for Ernst & Young. He joined Newrest in Zambia in 2012. In 2015, he was promoted to Country Managing Director for Newrest in Madagascar. Alexandre is now COO of Southern Africa Division, and is based in Johannesburg, South Africa.

Xavier is graduated from Business Law at Panthéon Assas University. He worked several years as tax specialist for BNP Paribas Group. Joining Newrest in January 2013 as tax specialist, Xavier is now general secretary since November 2016. Responsible for legal and tax matters of the Group, he is based in Toulouse, France.

CHIEF EXECUTIVE OFFICER

VICE PRESIDENT C AT ER I NG

In 1981, André started his career as financial manager for a Publicis Group subsidiary. In 1991, he joined Sodexo to hold successive direction positions during 20 years. He was appointed as Vice President for Newrest Restauration in September 2016, in charge of Group catering activities development. André is based in Rungis, France.

7 Matthieu JEANDEL VICE PRESIDENT FINANCES & A D M I NI ST RATIO N

Matthieu held various financial roles first with Thalès, then with Deloitte & Touche Corporate Finance. He joined Compass Group in 2003, based in Dubai with responsibility for finance in the Middle East and Africa. Joining Newrest in 2006, Matthieu is today in charge of Finance and Administration. He is based in Toulouse, France.

VICE PRESIDENT SALES & MARKETING

VICE PRESIDENT FRANCE

Graduated of Essec in 1991, Emmanuelle initially worked for Arthur Andersen and Ernst & Young. Recruited in 2000, she was in charge of Group Finance, Country Manager and Internal Audit before being named at the head of the Europe Division. Today, Emmanuelle is Vice President France, based in Toulouse, France.

11 Fabien REVOL

12 Marc STARKÉ

Fabien is graduated in economics & marketing with a masterin international business. His specialization in Asian cultures brought him to Asia before joining Newrest in 2010 as Operations Director. Today, Fabien is Country Manager Qatar and COO of Middle-East & Asia (excluding Saudi Arabia). He is based in Doha, Qatar.

Holding a MBA in Hospitality Business, Marc has developed his skills working in Asia, the Middle-East and Africa. He joined Newrest Group in 2013 as Country Manager Angola before being named COO of Southern Africa Division. Today, Marc works as Vice President of North Africa Division. He is based in Casablanca, Morocco.

CO O M I D D L E -EAST & ASIA

VICE PRESIDENT NORTH AFRICA

CHIEF EXECUTIVE OFFICER

VICE PRESIDENT R E M OT E SI T E

VICE PRESIDENT EUROPE & NORTH AMERICA

CO O S O U T H E R N A F R I C A

CO M M E R C I A L D I R E CTO R INFLIGHT & RAIL

VICE PRESIDENT L ATI N A M E R I CA & OCE A NI A

G E N E R A L S E C R E TA R Y

Activit y Repor t 2015 ∙ 1 6 ▶ 01 Group Presentation

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020

O R G A N I Z AT I O N C H A RT

OLIVIER SADRAN CO - C E O

DIVISIONS

E UROPE & NO RT H AMERIC A Ol i vi er SUAREZ VICE PRESIDENT

FRANC E Emmanuelle B OCCARDO PUIG VICE PRESIDENT

NO RTH A FR IC A Marc STARKÉ

MIDDLE- EAST & ASIA Fabien REVOL

VICE PRESIDENT

COO

L ATI N A M ER ICA & O C E A NIA O l iv ie r L AU RAC VICE PRESIDENT

SOUTHERN AFRIC A Alexandre L EL IÈVRE COO

Henri FISZER PA RTNER

J O N AT H A N S T E N T- TO R R I A N I

+ Pa t r i c k T I M B A RT

CO - C E O

COUNSEL TO THE CEOS

Activit y Repor t 2015 ∙ 1 6 ▶ 01 Group Presentation

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M AT R I X € HUMAN RESOURCES Guillaume JARLAN DIREC TOR

SALES & MARKETING Pierre BRUGÈRE VICE PRESIDENT

MAJOR PROJECTS & INTERNAL AUDIT Marie CHINER DIREC TOR

ON BOARD SERVICES PRODUCTS & INNOVATION José MANICH GRAU DIREC TOR

Pa s c a l R EG I M B AU D

VICE PRESIDENT REMOTE SITE

J e s s i c a H AY E S

COMMERCIAL DIRECTOR INFLIGHT & RAIL

QHSE Teresa ESPADA DIREC TOR

IT SERVICES Christophe BAJON DIREC TOR

FINANCES & ADMINISTRATION Matthieu JEANDEL VICE PRESIDENT

DIGITAL Baptiste CHANOURDIE PROJECT MANAGER

LEGAL Xavier PALAISE

G E N E R A L S E C R E TA R Y

COMMUNICATION Dominique PILATTE DIREC TOR

G R O U P A CT I V I T I E S

02 Tray production for our client XL Airways inside the Inflight unit of Cancun â&#x20AC;&#x201C; Mexico â&#x2014;&#x20AC;

Newrest is today a global leader in multi-sector catering. The Group is the only major catering company active in all catering and related hospitality segments including airline catering, buy-on-board, rail catering, concession retail, duty free, contract catering, Remote site and support services. Newrest is committed to constant improvement and innovation for its clients, the well-being and progress of its employees and managers, a sustainable and durable development of the company, and total respect of social and environmental values in all of its activities.

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INFLIGHT Loading for Qatar Airways – Athens airport (ATH), Greece ▶

485.9 M€ Managed turnover 2015∙16 excluding SACC

Countries around the world

Production units

MEALS SERVED BY DIVISIONS (Served meals in inflight business)

32.0%

E U R OPE & N O RTH AMERICA

40.2%

M I D D L E -EAST & ASIA

12.9% FRA NCE 5.8% L AT I N A M E R I CA & OCE NI A 4.6% SOUTH E R N A FR I CA 4.5%

NORTH A FR I CA

Newrest inflight’s international network counts 75 production units and 51 airport lounges located in 31 countries all around the world, mainly in Europe and America.

Activit y Repor t 2015 ∙ 1 6 ▶ 02 Group Ac tivities

025

Inflight catering, duty free on board, integrated management of inflight and logistics. By providing all of these services, Newrest Inflight is taking responsibility for everything that is not a core part of the airline business. I N F L I G H T C AT E R I N G

Newrest Inflight creates customized meals adapted to meet the high quality standards of airlines. Every day, our production units develop thousands of recipes for the most prestigious airlines as well as low-cost companies who choose a more simplified catering service. Whether based on religious, cultural, medical, or health reasons, our passengers’ dietary requests are always fulfilled. Our nutritionists offer advice and support in orienting airlines’ requirements.

Health and quality experts are always available to ensure that quality, hygiene, and food safety standards are optimal. We rigorously implement HACCP standards and most of our units are ISO 9001 certified. Our teams have ongoing training to guarantee an excellent level of service on a constant basis. Recording data related to the reception and handling of ingredients for each service guarantees accessible and easily consulted traceability.

V I P C AT E R I N G

Newrest Inflight has developed specific expertise in business-class and VIP flights. Our teams can meet the requests of important clients on a case by case basis. They listen to clients in order to develop ideal menus, select exceptional wines, and implement all services that help make the flight an unforgettable experience. They also rely on a network of wellknown suppliers who contribute to the service’s excellence and refinement.

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INFLIGHT

INFLIGHT & VIP C AT E R I N G U N I TS A N D A I R P O RT L O U N G E S NETWORK 51

Airport Lounges

Inflight & VIP Catering units

Abuja (ABV) Accra (ACC) Agadir (AGA) Alicante (ALC) Amsterdam (AMS) Athens (ATH) Barcelona (BCN) Birmingham (BHX) Bristol (BRS) Brussels (BRU)

Calgary (Y YC) Cancún (CUN) Cape Town (CPT) Casablanca (CMN) Chania (CHQ) Charleroi (CRL) Conakry (CK Y) Corfu (CFU) Dammam (DMM) Dubrovnik (DBV)

Edimburg (EDI) Entebbe (EBB) Exeter (EXT) Faro (FAO) Fort-de-France (FDF) Fuerteventura (FUE) Funchal (FNC) Geneva (GVA) Girona (GRO) Glasgow (GL A)

Heraklion (HER) Ibiza (IBZ) Jeddah (JED) Johannesburg (JNB) Kos (KGS) Lagos (LOS) Lanzarote (ACE) Larnaca (LCA) Las Palmas (LPA) Le Bourget (LBG)

Activit y Repor t 2015 ∙ 1 6 ▶ 02 Group Ac tivities

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Liberia (LIR) Lima (LIM) Lusaka (LUN) Lisbon (LIS) London (LCY) Lyon (LYS) Madrid (MAD) Málaga (AGP) Marrakesh (R AK) Marseille (MRS)

Medina (MED) Menorca (MAH) Montreal (YUL) Nice (NCE) Palma (PMI) Palma (PMI AIR-CPU) Papeete (PPT) Paris (CDG) Paris (ORY) Pointe-à-Pitre (PTP)

Rabat (RBA) Reus (REU) Rhodes (RHO) Riyadh (RUH) Saint-Denis (RUN) San José (SJO) Santa Cruz (V VI) Santiago (SCL) Sevilla (SVQ) Southampton (SOU)

Strasbourg (SXB) Tanger (TNG) Tenerifa Sur (TFS) Thessaloniki (SKG) Toulouse (TLS) Toronto (Y YZ) Valencia (VLC)

INFLIGHT

028

Trolley loading for Corsair – Reunion Island airport (RUN) ▶

234 Airlines served

AIRPORT LOUNGES

357,500 Meals served per day

Newrest Inflight manages welcome lounges for airlines and airports. As part of this service, we manage all aspects of the lounge: welcoming travelers and passenger services: ‘ À la carte’ cooking at the lounge,

2,300 Flights delivered per day

provisioning and serving all types of food and beverage with dedicated personal, layout and design of the lounges, supplying of equipment, cleaning and maintenance…

SOME REFERENCES

029

TRE 3 (Travel Retail Equipment, Environment & Entertainment) is the new upcoming company created in 2016 and powered by Newrest Group, which will be managing all the SOB (Sales On Board), duty free, product and innovation concepts for all kind of on board services equipment and entertainment. TRE3, focused on product development and innovation, is composed of a professional team with a huge experience in on board services, supply chain and customer experience management.

TRE3 highlights the contribution of value to our customers to whom we can offer all the development, innovation and manufacturing of all the equipment for the service on board, contributing new concepts and ideas as well as solutions that help and contribute in the customer experience. Among the equipment we can highlight: rotable and disposable plastics, chinaware, textiles, glassware, amenity kits, galley equipment, stain steel and confort equipment.

PRODUCTS TECHNOLOGY & DIGITAL

BOB

TRE3 advises, defines and implements different sales concepts on board such as: SOB management, customer experience sales analysis, cash management, cabin crew training, cabin crew program & crew incentive, marketing & product, digital & IT systems, media and Point of Sales devices and tools. TRE3, following digital trend in Retail sector, opts for this model with constant innovation. A lot of digital apps and options to sale on board are being implemented on railway and airline companies onboard to help customers generate higher sales and give them a larger choice value.

TRAINING

ALL IN ONE

MEDIA

▶ T RE3 PRODUCTS: Development, design, production and supply chain of on board equipment ▶ B OB: Sales on Board concepts (Travel retail and duty free) ▶ A LL IN ONE: The out sourcing of the on board services department and the integration of concepts ▶ T RAINING: Cabin crew training and motivation programs ▶ D IGITAL & TECHNOLOGY: Development, design and implementation of digital software to increase on board revenues

030

C AT E R I N G & R E M OT E S I T E Picture from the Catering advertising campaign – France ▶

352.4 M€

578,000

Managed turnover 2015∙16 excluding SACC

Meals served per day

Countries

MEALS SERVED BY DIVISIONS (Total number of served catering meals ∙ excluding Saudia Catering)

18.8%

M I D DLE- EAST & ASIA

47.9% N O RTH AF RICA

14.4% L AT I N A M E R I CA & OCE A NI A 10.9% FRA NCE 5.1% SOUTH E R N A FR I CA 2.9% E UR OPE & NORTH A M E R I CA

Offering its know-how in 43 countries all around the world: Newrest Catering in 25 countries, is the reference of industrial catering in North Africa & Newrest Remote site is located in 19 countries, primarily in challenging work environments.

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Every day around the world, our clients benefit from Newrest Catering’s expertise and trust them to manage their restaurants, labour camps...

C AT E R I N G CO M PA N I E S & A D M I N I S T R AT I O N S

Several public and private companies, administrations and embassies have trusted Newrest Catering to manage their restaurant, cafeteria, or reception lounge. We are convinced that employees want to consume their daily meal in a pleasant environment, and choose from a selection of fresh, appetizing, and carefully presented products. Intellectual

capacity and productivity participate in their workplace well-being.

H E A LT H

Newrest Catering manages meals for patients and staff in hospital centres and clinics, as well as snacks, bars, and cafeterias for visitors (hospitality services). We believe that good meals improve health and help patients recover. That is why our teams are attentive to the needs of each patient and scrupulously comply with dietary requirements.

E D U C AT I O N

Newrest Catering operates in teaching establishments including public and private elementary schools, secondary schools and universities. We know that children, adolescents and university students with a healthy, balanced, varied diet have a greater chance of intellectual success. We are fully aware of our responsibility to introduce children and youth to a variety of flavors.

C AT E R I N G & RE MOT E SIT E

032

ZOOM ON ‘ NEWR EST R E STAURATION’ TYPOLOGY OF CL IENTS The french subsidiary of Newrest in France

42% HEALTH

21%

COM PA NI E S, A R M I E S & A DM I NI ST RATI ONS

37%

EDUCATIO N

Newrest Restauration’s 1,587 employees serve more than 266 clients and manage 804 restaurants.

FA C I L I T Y M A N A G E M E N T

In companies and hospitals, we offer facility management. In every country, our production units are ready to provide catered food tailored to your needs: meal trays, sandwiches, and any other meal requested.

A S I N G L E S TA N D A R D

Newrest Catering believes in the vital importance of nutrition and healthy eating. To this end, we hire Newrest’s employee in a company restaurant – Chile ▶

15,800 Employees in Catering & Remote site sectors

qualified staff to collaborate with our clients and develop diverse menus. Regarding food safety, continuous verification of all the food manufacturing processes ensures optimal quality. When we design our restaurants, our first priority is to make them as pleasant as possible. We believe that this aspect of our service expresses our ongoing passion for excellence about the standard of living.

700 Clients

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033

A D E D I C AT E D D I G I TA L T O O L

Thanks to the Newrest application, Newrest proactively informs guests with detailed information on the coming menus (including diet details & allergens), animations and promotions at their restaurants, their kids canteen or their remote site. Guests are also welcome to click&collect their meal or order special requests to Newrest Staff.

R E M OT E S I T E Since its founding, Newrest Remote site has expanded its activities geographically by entering lands that are ever farther away and more hazardous, and can now offer a full network in many countries. Our staff have also gained new skills, both to enhance our processes and to better meet the needs of our customers. As the months passed, Newrest Remote site’s offering thus evolved fundamentally and now gives us standing as a reference in many new sectors.

ENGINEERING FOR INDUSTRIAL P R OJ E CTS

Assisting companies in the extractive sectors is part of Newrest Remote Site’s DNA. Nothing could therefore be more natural than for us to contribute our expertise during the preparatory phases of major projects: designs for kitchens and restaurants, budget analyses, and support for local staff, among other things. All of these services come to form part of the assistance provided to the engineering staff of our future clients.

Newrest’s team mobilised for the Remote site’s contract with Total E&P Congo (TEPC) – Ulsan, South Corea ◀

C AT E R I N G & RE MOT E SIT E

034

View from ALMA's observatory located in the Atacama desert â&#x20AC;&#x201C; Chile â&#x2013;ś

CLIENT DIVERSITY

Newrest Remote Site offers expertise first and foremost: we provide hotel management services, in the broadest sense, to anyone who has to work at mining sites, on oil platforms, and on huge construction projects. More recently, our staff have also provided their expertise to armed forces in circumstances that are increasingly complex but always under control.

Q UA L I T Y O F L I F E

Our line of business can no longer be characterised as merely preparing meals at a remote site. Our customers and our guests now expect our staff to take charge of anything the enhances the quality of life where they reside. The Remote Site concept has existed since the early 1960s, and it is no longer a surprise to anyone that such facilities exist at the farthest reaches of the earth. Every day of the year, our staff now ensure that

our guests enjoy a level of comfort, an atmosphere and a responsiveness comparable to what anyone could experience in a more familiar environment. Constantly online and interconnected, our guests benefit from the latest applications developed by Newrest staff to check menus or view events programming. At various locations, they can add their own review of our services at interactive terminals. They also can take part in activities organised by our staff, focused on topics everyone is familiar with, such as cooking contests. All of this motivation can be put to good use since our professional staff working in the background have ensured that every operation is properly set up.

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035

SOME REFERENCES

◀ Opposite: Lunch service in a restaurant for our client Komatsu – Santiago, Chile Left: Restaurant's room of Nouméa’s Medipole managed by Newrest Jacrégal – New Caledonia

036

RAIL Newrest Wagons-Lits’ on board sale representatives – ‘Montparnasse’ train station, Paris, France ▶

272.2 M€

37,000

Turnover 2015∙16

Meals served per day

Logistic centres

TUR N OVER BY COUNTRY (Total consolidated 2015/ 1 6 rail turnover)

7.3% AUST R I A 1.5% PORT UG A L

91.0% F RAN CE

0.2% CA NA DA

Newrest Wagons-Lits’ 2,660 employees offer services to 10 railway companies in 4 different countries.

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037

Creator of services for railway operators, Newrest Wagons-Lits offers on board day and night trains a wide range of catering and hotel services. It also provides numerous services to ensure that travel is easy and enjoyable for passengers. O N - B O A R D C AT E R I N G Newrest Wagons-Lits offers a full range of on-board services: bar, dining car, and catering. Passengers can relax and have a bite to eat at bars and dining cars. In first class, meal trays are served at the seat. In standard class, the trolley serves drinks and snacks. We provide services that meet passenger

expectations during their entire trip. Passengers experience is enriched thanks to the digital channel, before or during the trip, passengers can order their meal online and be delivered at their seat.

HOTEL SERVICES We have a versatile crew, attentive to the comfort and safety of our passengers. They ensure the maintenance and cleanliness of trains and provide peace of mind for passengers. We are the only operator offering a global service concept combining railway safety and on-board services.

S E R V I C E S F O R PA S S E N G E R S The full range of services offered by Newrest Wagons-Lits corresponds to each part of the journey: welcome, assistance, information, ticket sales

RAIL

038

▶ Opposite: Tractor delivery for SNCF in Paris ‘Montparnasse’ train station – Facilit’rail, France Below: Loading trolleys on ÖBB’s trains – Newrest Wagons-Lits Austria Business class’ food offered on Comboios de Portugal trains’ board – Newrest Wagons-Lits Portugal

254,000 Trains delivered per year

40,200 Night train voyagers per day

and checks, access control, baggage assistance, and hotel and taxi reservations. We also escort passengers with specific needs: children, seniors, and persons with reduced mobility.

L O G I ST I C S A CT I V I T I E S & CO M P L E M E N TA R Y S E R V I C E S Responsible for supplying the trains, we prepare, manage, and stock all products necessary for on-board services to run smoothly and for passengers to be comfortable. Thus, Newrest Wagons-Lits offers rail operators a complete and coherent service chain: stock purchase and management; synchronized loading and unloading of products, containers and materials; and diagnostic and control services before departure.

CO N S U LT I N G & T E C H N I C A L A S S I STA N C E F O R R A I L O P E R AT O R S Newrest Wagons-Lits also offers support services for railway operators, consulting and technical assistance: defining innovative sales and on-board service concepts, design, a selection of product ranges

2,660 Employees around the world

that correspond to passengers’ expectations, and optimal organization of on-board services and logistical operations.

Activit y Repor t 2015 ∙ 1 6 ▶ 02 Group Ac tivities

039

ACTI VITY DISTRIB UTION (Total number of catered trains in 2015/ 1 6)

8.3% AT-SE AT-SE RV I CE

86.5%

B AR SERVICE

5.2% NI G H T T RA I NS

Newrest Wagons-Lits applies its know-how on board of more than 4,900 trains per week and helps its clients with logistic activities on 8,500 trains a year.

OUR REFERENCES

▲ New SNCF’s ‘Oceane’ trainset including a brand new bar car catered by Newrest Wagons-Lits France – Paris, France

040

R E TA I L Geneva Natural History Museum’s cafeteria managed by Newrest Canonica – Geneva, Switzerland ▶

34.0 M€

27,500

Managed turnover 2015∙16 excluding SACC

Meals served per day

111

Points of sale

MEALS SERVED BY DIVISIONS (Total number of served clients ∙ excluding Saudia Catering)

25.5%

L AT I N M ERICA & O CEN IA

3.7% F RAN CE 42.9%

NO RTH AF RICA

21.0% E UR OPE & NORT H A M E R I C A 2.4% SOUT H E R N A FR I CA 4.5 % M I DDLE -E A ST & A SI A

Newrest Retail has own-brands and international and local franchises. Our retail restaurants, bars and shops are located in 16 countries all around the globe. Almost ¾ of retail clients are served in the North Africa Division.

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041

Inside airports or museums, at highway service stations, on board ships and at bus terminals, Newrest Retail creates and manages retail outlets dedicated to food services, as well as shops. To manage these outlets, Newrest Retail structured three chains to best satisfy market demand: brands specific to Newrest Retail, international franchises and local franchises.

P R O P R I E TA R Y B R A N D S

To meet consumer expectations, Newrest Retail has designed a portfolio of internal brands such as Daily

Break, Caffé Lindo, Sky Shop, The Lunch and Malinche. The marketing policy for these brands targets harmonisation of points of sale. In each country, Newrest Retail adapts part of the offering to precisely match specific regional consumer practices.

I N T E R N AT I O N A L & L O C A L FRANCHISES

For its franchise brand development, Newrest Retail has relied on the services of international groups such as Paul, Illy Café, Pomme de Pain, La Croissanterie... In certain countries, local, customised franchise concepts allow Newrest Retail to support site managers by providing region-specific offerings. The inclusion of local franchise brands is one of the tools used, for example Medina and Monsieur Brochette in Morocco.

042

R E TA I L

â&#x2013;ś Opposite: Retail's 'Paul' point of sale â&#x20AC;&#x201C; Rabat airport (RBA), Morocco Below: Retail's 'La Croissanterie' point of sale â&#x20AC;&#x201C; Total's highway station located in Chichaoua, Morocco

23,700

Brands

Coffees served per day

Countries

A -Z M A N A G E M E N T

Before opening a franchise, Newrest Retail manages the entire creation process. We rigorously analyse the constraints and advantages of the future outlet in accordance with its location, visitor traffic, and the number and profile of potential customers. We define the interior design, the furniture, decor, uniforms and communication visuals, and monitor the construction of the premises. We select the range of products that will best suit our clientele of international or national travellers, while taking into account local traditions in terms of taste preferences and the mandatory requirements of franchise brands. Once the outlets have opened, we take over full management of the premises, which includes purchasing and selling the products at the best quality/price ratio. This service also includes occasional events and promotions to boost traffic, avoid monotony, favour impulse buying and thereby offer a dynamic image of our points of sale. This management also obviously includes maintenance and cleaning. The site director, technical management team and all of the employees are Newrest personnel. To ensure the quality of our service is always optimal, we provide continuous training to our teams.

C R E AT I V E E X P E R T I S E

The expertise acquired by Newrest Retail allows it to continue to create other customised retail concepts for new markets and to negotiate partnership contracts with prestigious local partners and international brands based on the development of franchises.

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043

TY P OLOGY OF LOCATIONS (Total number of points of sale by country)

12.5% M OTOR WAYS

68.8% AIRPO RTS

18.7% OT H E R LOCAT I ONS

Newrest Retail counts 111 points of sale specially developed for the different needs of our clients.

SOME REFERENCES

Left: Retail’s ‘illy Espressamente’ point of sale – Casablanca airport (CMN), Morocco Opposite: Chaplin’s World Café Restaurant ‘The Tramp’ – Corsiersur-Vevey, Switzerland ◀

O P E R AT I N G P E R F O R M A N C E 2 0 1 5 / 1 6

03 Airplane loading for Lufthansa – Athens airport (ATH), Greece ◀

K E Y E V E N TS 2015 ∙ 1 6

UNITED KINGDOM

07/ 2016 & 09 / 2016 Two new entities Since July 2016 from Southampton and since September 2016 from Manchester, Newrest in United Kingdom has served Inflight clients.

CO L O M B I A

11 /2016

NIGERIA

Operations launched in Colombia

07/ 2016

After four months building the production unit, Newrest Group has started its operations within the Inflight catering sector in Bogota.

Joint venture with ASL In July 2016, the Airline Services & Logistics PLC company (ASL) changed its name to Newrest ASL.

PERU

CO N G O - B R A Z A V I L L E

12/ 2015

09/ 2016

Start of ‘Transportes Cruz del Sur’s’ contract — bus catering

Total E&P’s Moho Nord project

Newrest in Peru has created a new catering activity constituting an astounding first. From now on, Newrest daily supplies services for passengers of the bus company ‘Transportes Cruz del Sur’, a company daily chartering 70 buses from Lima.

Start of FPU Likouf from Ulsan in South Korea on behalf of Total E&P Congo. Newrest’s international team, managed by a Dutch camp boss, insures catering and hotel services (cleaning and laundry) aboard. At its arrival in Congo on December 2016, Newrest in Congo will take over the reins.

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047

FRANCE

12 /2015

09/2016

02 / 2016

Facilit’rail’s launch

‘Bistro de Chef par Michel Sarran’

Newrest Restauration’s launch

Since September 1st, 2016, Newrest Wagons-Lits in France has delivered ‘Bistro de Chef par Michel Sarran’ products to its client SNCF. This brand has been created by Newrest Group especially for TGV, in collaboration with Michel Sarran, a two Michelin star chef in Toulouse.

After having purchased 100% of APETITO SA’s capital to APETITO AG on February 17th, 2016, Newrest bought 34.4% of the French company Coralys’ capital on September 2016. During this month, Newrest Restauration has also launched an advertising campaign.

On December 2015, the ashore service’s contract for Eurostar and Thalys trains from ‘Gare du Nord’ in Paris was attributed to Facilit’rail. Thus, this Newrest’s subsidiary has been created to insure logistic services – production, supply and dissupply – for TGV, iDTGV, INTERCITÉS and ALLÉO trains of SNCF.

NEWREST GROUP

10 /2016 Newrest-Matmut’s skipper Fabrice Amedeo After the Transat Jacques Vabre race at the end of 2015, and the Transat New York‒ Vendée in early 2016, Newrest‒Matmut’s skipper Fabrice Amedeo took the 2016/17 Vendée Globe’s start on November 6th, 2016. On the Vendée Globe’s village from October 15th to November 6th, Newrest‒ Matmut helped the visitors to discover Fabrice Amedeo’s life aboard through a virtual reality animation.

SAUDI ARABIA S W I TZ E R L A N D

04/ 2016

02 / 2016

04/ 2016

Newrest Canonica sets up in the Natural History Museum of Geneva

‘The Tramp’

Newrest Canonica in Switzerland, after having acquired a considerable experience in the catering and B&I sector, is now entering the retail business by opening several points of sale, particularly inside cultural centres.

Since April 17th, 2016, Newrest Canonica in Switzerland has been honoured to be managing ‘The Tramp’, the Chaplin’s World museum restaurant in Corsier-sur-Vevey. There, everyone is invited to enjoy a meal in a typical atmosphere of Charlie Chaplin’s universe.

Opening of the KAEC Commercial Laundry in Jeddah Saudi Airlines Catering has recently introduced the largest automatic laundry ever in the region on an area of 10,000 m2 at the industrial valley of King Abdullah Economic City (KAEC). Its capacity of 30 tons of laundry per day allows a targeting of accommodation companies, hotel sector and industrial cities.

FRANCE

France French West Indies Reunion Island

132,800

412.3 M€

24.3 %

Meals served per day

Managed turnover 2015∙16

of Group’s managed turnover

TUR NOVER DISTRIB UTION (Total managed turnover 2015∙16 excluding Saudia Catering)

34.5% IN F LIGHT 60.1% RAIL

5.2%

CAT E R I NG

0.2%

R E TA I L

Introduction

049

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FRANCE DIVISION

VICE PRESIDENT FRANCE

Emmanuelle BOCCARDO PUIG

In the period of 2015/16, despite a less than favourable overall economic environment, the France division was able to expand its business operations and increase its turnover by 15,4%. In fact, the Group had the good fortune of being selected in the call for tenders for all the in-station food service supply operations logistics for the SNCF. Facilit’rail International, which services the Thalys and Eurostar trains, started its operations in December 2015, and Facilit’rail, which services all the stations with high speed train (TGV), iDTGV or Intercités trains, began its operations in March 2016. These two new, large contracts are evidence of the recognition the SNCF group has for Newrest’s experience in the rail sector, further strengthened the partnership between the two groups and transformed Newrest into the world leader in rail catering. The 2015/16 period was also a propitious time for Newrest Wagons-Lits, with the renewal of a contract where this subsidiary will be fully responsible for allocations and the management of financial commitments. Alongside these expanded operations in the rail sector, Newrest’s Inflight division suffered from its lack of stability: this was a tough time, with major growth in business operations but a reduction in its economic performance. A major effort was undertaken

starting in the last quarter of 2016 to prepare the production units, both in Paris and the rest of the country, for greatly enhanced performance and quality of service. The Paris units will thus be ISO 9001 certified right at the start of the 2017 period. Duty free and Buy on Board operations dropped overall, except for those destined for Corsica Ferries ships, based specifically on the renovation of two of the boutiques of Newrest’s Seashop subsidiary. As a whole, the industry is suffering from the ever more active competition of online, low-cost purchasing, and the various anti-smoking campaigns have begun to have an enduring effect on cigarette sales, which were, and still are, the largest selling item in this now-delicate market. Newrest Group also gained an upper hand in 2015/16 as a major player in Catering in France. Newrest Restauration is developing custom catering service solutions throughout France and for every market sector (corporations, health, education, armed forces, government agencies and local administrations) by banking on their experience in the various trades and that of their staff in the 48 countries where Newrest Group is present. The French Antilles and Reunion Island are continuing to make headway in their efforts, with increased volume of business and greater profits. Inflight catering is flying high in the Antilles due to a booming tourist sector in the islands, and Reunion Island was very successful in Airport concessions, having recently been awarded a competitive contract issued by the Roland-Garros airport to manage all of its food service points.

Start of United Airlines contract in March 2016 in Charles de Gaulle airport (CDG) – Paris, France ◀

050

CO N T I N E N TA L FRANCE 8

Production units

Logistics centres

Points of sale

804 Restaurants

turnover at those sites was heavily affected. The same was true for our VIP business where, at the Nice airport, for example, there were fewer foreign customers than in previous years. Still pursuing high performance and quality, Newrest Inflight France had its ISO 9001 certifications for equipment management and commercial relations renewed. At the same time, the QHSE staff put final touches on certification of their industrial processes for the CDG and ORY units, which will be audited at the end of 2016.

AIRSHOP FRANCE G E N E R A L M A N A G E R Catherine CHAPLAIN

2015/16 was a tough period for the duty free and Buy on Board business operations of the Newrest in France Group, whose turnover declined despite a steady perimeter of activity.

▲ + 15.5 %

Managed turnover increase in Continental France

NEWREST INFLIGHT FRANCE M A N A G E R Emmanuel LEPRÊTRE

Inflight food offer in Orly unit (ORY) – Paris, France ▶

In the Inflight sector, the 2015/16 period was marked by United Airlines, a major new customer, signing contracts for both the Charles de Gaulle airport unit and for the Group’s global network. Newrest’s subsidiary managed to convince this prestigious customer that its procedures and professionalism were the perfect answer to the problems of operational performance in a restricted economic environment. In terms of departures from the Paris-Roissy Charles de Gaulle airport, Newrest Inflight teams are now servicing six United flights daily (for which the kickoff was methodically prepared in close cooperation with the airline’s catering staff, specially seconded to make this operation a success), and the flights of Norwegian airlines (which is starting new long-haul flights from this airport). The rest of Newrest’s business activities suffered from the events in Paris and Nice this year and, as holds for the tourist industry as a whole, the Group’s

This decrease was the same as the national average for sales activities (excl. VAT), including at airports, and was essentially due to two factors: the ever higher competition from on-line discount purchase possibilities and the steady decrease in tobacco purchases. Nevertheless, this subsidiary is continuing to modernise its business operations by welcoming digital operations and the placement on-line of merchant sites on behalf of its companies in order to promote pre-ordered sales. Lastly, Airshop France

undertook to renovate its sets of sales terminals on board planes, giving priority to digital tablets so that, in addition to the technical operation of sales, it can propose content to present new products or marketing offers on the communication media of customers on board.

SEASHOP O P E R A T I O N S M A N A G E R Giulia DE MARINIS

The 2015/16 period was a positive year for the on-board business of the Corsica Ferries ships. Due to Newrest’s renovation of two boutiques out of the total fleet, which is the first phase of an overall project to upgrade all of their on-board shops, sales increase by approximately 7%, even though the number of passages increased by only 1%. Plans are now under way to renovate four more shops following these decisive results. A new ship, the eleventh one, was incorporated in the summer of 2016, and led to the opening of an eleventh shop. Corsica Ferries is talking about a 12th ship for next summer.

C o n t i n e n t a l F ra n ce

051

Activit y Repor t 2014 ∙ 1 5 ▶ 03 Operating Per for mance

FRANCE DIVISION

NEWREST RESTAURATION V I C E P R E S I D E N T André RODIONOFF

During the 2015/16 period, the Newrest Group established itself as the new major player in the Catering sector in France. With the acquisition of Apetito France, followed by the joint venture with Coralys, Newrest Restauration is developing customized catering solutions across France and for each market segment: companies (LCL, Auchan, St Gobain, MACIF, Clarins, Carrefour, Poclain, etc.), health (Institut Curie, COS Association, EHPAD of the SNCF, C. Mazier Gerontology Centre, E. Cotton Residence, EHPAD Lasserre Issy-les-Moulineaux, etc.), education (École des Mines, Sainte Marie Versailles, town of Mareil, town of Ham, etc.), the armed forces (Val de Grâce, BSMAT Salbris, etc.) as well as administrations and local authorities (CNAFP, Agence Française de Développement, Conseil des Prud’hommes de Paris, CPAM des Yvelines, RIA de Rueil-Malmaison, APCMA, etc.). Newrest Restauration draws from the expertise of the Group’s various core businesses and teams located in 48 countries. In France, Newrest Restauration offers creativity and a novel approach, combining its own original concepts with mainstream brands. It has become a force to be reckoned with among major catering groups. Newrest Restauration has launched an advertising campaign shown on national television, a major first in the world of Catering. This modern approach gives the public a closer look at the company’s values: togetherness, passion, attentiveness and solid expertise.

Above: One of Corsica Ferries point of sale, managed by Seashop Opposite: Inside a Newrest Restauration kitchen – CPAM of Versailles, France ◀

052

NEWREST WAGONS-LITS

FACILIT’RAIL FRANCE

G E N E R A L M A N A G E R Benoît VIGNON

G E N E R A L M A N A G E R Jacky FIORE

In the Rail sector, the staff of Newrest Wagons-Lits France concentrated all year on five major topics: quality of service, customer satisfaction, growth of sales, deployment of the new payment system and corporate reorganisation after the ‘Pro Première’ (business class) service was discontinued.

Newrest Group founded the Facilit’rail France subsidiary on March 1st, 2016, after winning the call for tenders issued by the SNCF to award its contract for Rail catering logistics.

View of one of our client SNCF TGV bar – Paris, France ▶

The subsidiary’s logistics sites are located in the main SNCF stations: Lille Fives, Paris (Gare de Lyon, Gare Montparnasse, Gare d’Austerlitz, Gare de l’Est), Lyon (Part Dieu and Perrache), Marseille Saint Charles, Nice Ville and Bordeaux Saint Jean. Facilit’rail’s customers are the major railway operators: the SNCF and its subsidiaries (TGV, iDTGV, Intercités, Alléo - trains to Germany, Lyria - trains to Switzerland, and Ferrovial trains to Spain). Facilit’rail conducts the following operations: inventory management of fresh, dry and consumable goods for the trains (orders, receiving, warehouse stock management, inventories), order preparation (kitting, picking, FEFO management) for fresh and dry environments, stocking of the trains, supervision and management of deliveries by tractors in stations, de-stocking of trains and, lastly, recycling of the goods.

Newrest Wagons-Lits France is particularly proud that its customer CRMS renewed its contract, which forms part of this subsidiary’s strong commitment to increase sales and control the costs of raw materials. The product offering, already broadly updated in previous years by award-winning chefs and renowned pastry-makers from ‘Boco’, has again been enhanced and totally re-fashioned by a two-star chef who has created the salads, sandwiches and hot dishes since September 2016. The Newrest Wagons-lits France headquarters were entirely refurbished and the staff now operates out of the Paris-Montparnasse train station. Newrest-Wagon-Lits France obtained ISO 9001 certification for its business on the Intercités trains, renewed its ISO 9001 certification for the high speed train sector, and started the process for ISO 14001 certification.

The Group installed WINLOG, which is a WMS (Warehouse Management System). This warehousing management and optimisation software package serves to manage and optimise both physical and computerised flows. This program is used to standardise operating procedures in real time, perform flawless tracing of inventory both physically and administratively, and to monitor stock levels. Plans call for developing a module for managing the movements of order preparation supports and improving the overall security of the logistics chain. In terms of Quality and Health, Facilit’rail hired a QHSE manager, sets up an action plan to further improve the subsidiary’s QHSE standards and is currently starting the process for the ISO 9001 certification in 2016/17. For the 2016/17 period, Facilit’rail France would like to upgrade the skills of its employees, plans to consolidate production for its Paris sites at a central location, and will enhance its WMS with transport management service modules (TMS) to optimise tractor movements.

C o n t i n e n t a l F ra n ce / R e u n i o n I s l a n d / F r e n c h W e s t I n d i e s

REUNION ISLAND

COUNTRY MANAGER

Louis MALIKITÉ

Production unit

Point of sale

▲ + 5.0 %

Managed turnover increase in Reunion Island

F R E N C H W E ST INDIES

COUNTRY MANAGER

Thomas GINOUVES

Production units

2,000 Meals served every day

▲ + 7.1 %

Managed turnover increase in French West Indies

The 2015/16 period achieved a mixed result for Airshop at Reunion Island.

The 2015/16 period was excellent for both the Fort-de-France and Pointe-à-Pitre units.

The results are a bit of a disappointment to this subsidiary for the Inflight sector, which saw its business operations shrink somewhat, along with middling performance in the management of its duty free operations.

The sunny destinations of the French West Indies were once again fully booked this year, and Newrest’s customer companies, Corsair and Air Caraïbes put on additional shifts all summer to meet the sustained demand. These destinations are also welcoming new operators and Newrest had the privilege of being selected by Norwegian and Condor airlines to operate their new lines to the West Indies, and by Air Caraïbes to manage its business lounges at the Fort-de-France and Pointe-à-Pitre airports.

In the Airport Concessions sector, the subsidiary won the international call for tenders issued by the Roland-Garros airport to manage all of its catering points. Newrest Group sales and marketing staff were able to win over airport decision makers: the Group’s new designs and ideas in terms of responsiveness, combined with good knowledge of culture and tastes in Reunion Island, gave Newrest the jump on its competitors. The works and inaugurations of the renovated points of sale will take place in the next twelve months.

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Newrest Inflight staff in the West Indies finally had the pleasure of welcoming, as they should in the finest tradition of Creole hospitality, Fabrice Amadeo, the skipper of the Newrest-Matmut crew when it reached Pointe-à-Pitre in Guadeloupe after crossing the Atlantic in the 10th Route du Rhum sailing race. Airplane loading for Corsair ‒ Reunion Island airport (RUN) ◀

EUROPE & NORTH AMERICA

Austria Belgium Canada Croatia Cyprus Greece The Netherlands Portugal Spain Switzerland United Kingdom United States of America new

132,800

305.2 M€

18.0 %

Meals served per day

Managed turnover 2015∙16

of Group’s managed turnover

TUR NOVER DISTRIB UTION (Total managed turnover 2015∙16 excluding Saudia Catering)

8.0%

RA I L

84.1% IN F LIGHT

0.9%

R E TA I L

7.0%

CAT E R I NG

Introduction

VICE PRESIDENT EUROPE & NORTH AMERICA

Olivier SUAREZ

In Europe, the 2015/16 period was marked by contrasting situations at the various subsidiaries in the division. Spain experienced growth of about 9%, partly driven by Madrid and Barcelona. In addition to the contract with Air Europa, which showed great development of its lines to South America, and the United States of America market with 30% growth, Newrest landed many new contracts this year with: Saudia Airlines, Cathay Pacific, China Eastern, and for the second Emirates A380 aircraft. This country is now ready to move on to diversification in other sectors of activity. 2015/16 was a decisive period in the United Kingdom, with the signature of the Flybe contract and new units opened, thus bringing the Group’s network in this country to eight sites. British Airways, Newrest’s joint venture customer since it started doing business at the London Airports, has given us return business. Manchester welcomed the 1st longhaul flight. In Greece, the extremely problematic political and economic circumstances continued in 2015/16 with the refugee crisis. Despite this complex context, the Athens airport experienced a substantial increase in passenger traffic. Aegean Airlines expanded its international operations, and other customers such as the United States of America and Asian companies, increased their flights to this site. The Catering sector turned out to be a disappointment, with lost contracts and no new market share gained. In Belgium, the year was marked by the terrorist attack at the Brussels airport. Newrest made special efforts to assist its customers during this traumatic time, seeking to provide them with top-line service based on professionalism and responsiveness. The TUI Group, with whom the Group has been working in the Netherlands for several years now, renewed its confidence in us by initiating a contract for Belgium out of the airports in Brussels and Charleroi. Lastly, the Thomas Cook and Freebird companies again contracted with the Belgian subsidiary for their Buy on Board services during this period.

In the Netherlands, growth was around 10%, with customers such as Transavia, TUI, and Easyjet, along with Qatar Airways and Air Canada, who continue to expand operations there. In 2015/16, the business activity in Switzerland produced varied results. While Inflight catering remained stable, the Catering and Retail sectors obtained handsome contracts, particularly with the inauguration of food service locations in the internationally-acclaimed Chaplin’s World museum and the Museum of Natural History in Geneva, which enabled the Swiss joint venture to double its sales. The tender contract awarded for the Swiss Lounges helped offset the strong drop in VIP flights at the Geneva airport. Newrest Group decided to invest in a centralised kitchen specifically for Catering, expected to open in early 2017. In Croatia, business activity grew substantially in the areas of Airport concessions, Inflight catering and Catering, but was somewhat reduced overall due to a significant decrease in VIP operations. Newrest staff had the special honour of servicing the Japanese company, ANA, for its flights. In Portugal, 2015/16 can be seen as a period of transition. Better cost control and major investments in modernising its unit should enable the subsidiary for Portuguese Inflight catering to obtain new successes in the market. In terms of the railway sector, obtaining the Portuguese Alfa Pendular high speed train contract meant a loss of profitability for Newrest Wagons-Lits, which has had to redesign its on-board commercial and marketing plans in order to boost sales again. Austria enhanced its partnership with its customer, ÖBB, by helping it expand its night train business in Germany, thus enabling Newrest Wagons-Lits to nearly double its sales in Austria. In Canada, the Pierre-Elliott-Trudeau International Airport in Montreal maintained all of its customers after numerous calls for tenders, and has undertaken an in-depth effort to improve the quality of its services. The Calgary International Airport lost the Starbucks contract, but the Toronto airport got a leg up on economic growth by obtaining contracts with companies such as Brussels Airlines, Caribbean Airlines, Ethiopian Airlines and Saudia Airlines.

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056

A U ST R I A 2

Logistic centres

COUNTRY MANAGER

Pierre MAGNARD

Trains per day

1,590 Meals served per day

▲ + 11.8 %

Managed turnover increase in Austria

the night train as the ‘Night Jet’, creating a new atmosphere on board with new laundry facilities, plus a new colour scheme for cutlery packs and other customer items, thus reflecting the same design concept as the uniforms Newrest had designed. That concept is based on the principle of “Relax - let your stress go” (“Lässig statt stressig”).

2015/16 was a very decisive year for Newrest Wagons-Lits Austria. Based on its successful, longterm experience and the positive partnership between ÖBB and Newrest Wagons-Lits, ÖBB took the opportunity to join forces and expand its night train activity to German night trains, doubling the night train offering.

2016 was also a year of transformation and preparation. The Austrian subsidiary had to nearly double the number of its employees and begin training the new hires to meet its high standards of safety and customer satisfaction. In addition, Newrest Wagons-Lits Austria had to create or re-design logistics centres in Salzburg, Innsbruck and Graz.

Newrest Wagons-Lits Austria took part for the first time in a nationwide satisfaction survey on train services, and obtained a customer satisfaction rating of 96% for service, 84% for product quality and 84% for cleanliness. In all three categories, this subsidiary surpassed all its competitors and obtained the highest rating achieved in Austria since 2010.

In terms of logistics, this will mean the establishment of two new logistics sites (Salzburg & Innsbruck), and the upgrading of a third (Graz). There will be significant outsourcing of stock levels to ensure that the subsidiary is ready for the opening of the new connections.

In late May 2016, ÖBB decided to invest 230 M€ in train equipment for its expansion over the years to come. In collaboration with ÖBB, Newrest Wagons-Lits Austria also contributed to re-branding

ÖBB night trains will thus continue to be the main activity of the Austrian subsidiary for another year, with an opportunity to nearly double its turnover in 2017. Starting on December 9th, 2016, new routes will be added. This strategic decision affected every part of the organisation. In terms of human resources, the nearly 300 new employees will have to be trained in Newrest policies and practices.

Naturally, with all these efforts being made, everyone is looking forward to 2017, when the preparations will come to fruition and Newrest Wagons-Lits Austria will be able to welcome 750,000 customers on board, twice the number it formerly handled.

BELGIUM 2

Production units

COUNTRY MANAGER

Bernard MARTINEZ (Benelux)

20,800 Flights catered per year

Clients

Austria / Belgium

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ago, and another with the Vueling company. In addition, the Thomas Cook company renewed its contract for Buy on Board. This joint venture is now also working with Saudia Airlines Cargo on Halal foods, and with Ethiopian Airlines Cargo for some dozen flights per week. The Chinese company, Hainan Airlines, selected Newrest Servair Belgium to supply on-board services for five weekly flights to Beijing, starting in 2017. This contract should solidify the joint venture’s reputation at the Brussels airport so it can become a potential partner for the long-haul flights of other airlines in Belgium. The goal of the Brussels unit is to obtain ISO 9001 certification in 2017.

▲ + 100.9 %

Managed turnover increase in Belgium

The major addition of TUI and the fact that no customers were lost served to double turnover, despite the negative effect (-30%) on Buy on Board sales due to the reduced number of flights to at-risk countries such as Turkey and the number of cancelled flights to Tunisia and Egypt.

The 2015/16 period was marked by two major events for Newrest Servair Belgium: initiation in November 2015 of the contract with TUI Group for an average of 30 daily flights, and the traumatic terrorist attack at the Brussels airport last spring. To help kick off the new business with TUI, the joint venture received very valuable assistance by many staff members from other Group subsidiaries and had to greatly increase its staffing. After the attack, which occurred just four months after it started operations, Newrest Servair Belgium managed to immediately adapt to the new needs of its customers and provide deliveries from the four other airports in Belgium, thus supplying nearly the same number of flights as before, even during the two months when the Brussels airport was closed. The business activity of the Charleroi unit increased to 25 daily flights with its handling of the TUI flights. An Inflight catering contract was signed with the Turkish seasonal company, Freebird Airlines, already a partner for Buy on Board sales as of several years

Meal presentation by the Michelinstarred Chef Jean-Michel Lorrain for Hainan airlines – Charleroi unit (CRL), Belgium ◀

058

CANADA 3

Production units

COUNTRY MANAGER

Frédéric HILLION

Client

25,000 Meals served every day

In the Inflight catering sector as well, the Montreal production unit renewed all of its contracts and had an 8% increase in turnover. In terms of Airport concessions business, it should be noted that the contract ended with Starbucks in Calgary. The year was also beneficial in terms of Quality and Health, since the Toronto and Calgary units obtained ISO 9001 certification, meaning that all of the bases in Canada are now certified. For the year to come, the Canadian joint venture does not plan to rest on its laurels. Numerous projects are under way: Newrest Group would like to deploy all of its expertise by eventually developing its business in the railway sector across the entire country with VIA Rail company.

▲ + 6.3 %

Managed turnover increase in Canada

The 2015/16 period was a bonanza for the joint venture with Servair in Canada, where its turnover increased 6.3%. This rate of growth was especially due to the expansion of the kitchen facility in Toronto, where the customer portfolio has been greatly enhanced. This joint venture currently supplies more than 20,000 meals daily on 265 flights. The new contracts obtained in Canada include Newrest Servair services to Brussels Airlines, Caribbean Airlines and Ethiopian Airlines. Celebration of the new contract with Brussels Airlines – Toronto airport (YYZ), Canada ▶

In the Inflight sector, growth will continue beginning in October with the start-up of operations with Saudia Airlines out of Toronto as of 1st November and American Airlines as of 1st December. The Vancouver airport is also among the opportunities to be targeted as part of Newrest’s project for growth in the Inflight sector.

C R O AT I A 35

Inflight customers

COUNTRY MANAGER

Michal DEBRECENI

Clients

Points of sale

▲ + 14.5 %

Managed turnover increase in Croatia

2015/16 was an excellent result for Newrest Dubrovnik, with turnover growth in excess of 14% over prior year.

Canada / Croatia

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Loading for Croatia Airlines – Dubrovnik airport (DBV), Croatia ◀

What proved to be a great year for passenger travel and tourism, and led to a 5% increase in Inflight and 15% in Retail, was not so positive for the VIP/Private jet sector, which has declined 11% in terms of the number of flights and earnings from this activity. Nevertheless, the Croatian subsidiary managed to offset this shortfall by increasing revenue from the Personnel Meals activity (+29%), based on new contracts signed with local businesses. Benefiting from the fact that European markets were facing a surplus of certain goods, and also by withstanding pressures from suppliers, Newrest was able to maintain – or in some cases even reduce – the input costs of raw materials and thus lessen food cost. Similarly, due to proper planning and the effective utilisation of human resources, labour costs were improved and close monitoring of overhead expenses contributed to a satisfactory overall operating performance. As in previous years, the domestic airline, Croatia Airlines, is still the subsidiary’s most important Inflight client and business partner. However, besides this account, Newrest in Dubrovnik provides services to more than 20 European airlines. We are proud to report that, in summer 2016, Newrest in Dubrovnik became the first of all Newrest Group subsidiaries to provide services to All Nippon Airways for ANA’s charter flights from Dubrovnik to Tokyo on a

contractual basis, and delivered top-quality services to the client’s entire satisfaction. The Dubrovnik unit has been both HACCP and ISO 9001:2008 certified since 2014, and these certifications have been renewed annually by external bodies through audits, which challenges the staff to constantly work on improving internal procedures, thus keeping Newrest in Dubrovnik in line with the Group’s QHSE targets and policies. Special attention was paid to staff training, as well as to streamlining the procedures for placing orders from Retail to Production by developing an ordering module built into the Point of Sales system that provides for highly effective, yet simple, management, planning and follow up of production. We are pleased to announce that FINA – the Croatian National Financial Agency – has, for the 3rd consecutive year, awarded the Newrest subsidiary in Dubrovnik its Golden Scales. This award for the most successful business in the Hospitality industry in Croatia in 2015 makes Newrest one of the 8 most successful businesses, out of more 100,000 Croatian companies. Such a result would not be possible without the vast support of the Group, the dedication of its managers, and customer trust and satisfaction, but foremost, this would not be possible without the hard work of employees.

060

as well as a decrease in VIP activity. These factors, in conjunction with Aegean Airlines reducing its international routes from Larnaca, were the main impediments to achieving targets as revenue in Cyprus dropped 7% compared to 2015/16.

CYPRUS 38

Inflight customers

COUNTRY MANAGER

Manuella KAPAGIANNIDI

Client

21,000 Meals served every week

▼ - 7.4 %

Managed turnover decrease in Cyprus

Unfortunately, the year 2015/16 proved to be another difficult year for Newrest in Cyprus, as Transaero faced major difficulties and British Airways changed its concept to return catering. Key forecasted European economic indicators are mostly negative and show little sign of progress; Cyprus did see a substantial increase in tourism assisted by regional turmoil in Turkey and Egypt. Newrest Group’s Cypriot subsidiary, which mainly operates in the Inflight business sector, did witness a substantial decrease in its meals served to 2,400 meals per day on a yearly average due to closures and a concept change at two of its largest clients,

Newrest in Cyprus was able to contract with Rossiya Airlines, part of the Aeroflot Group, and this helped offset some of the loss in revenue. Additionally, positive growth was seen in the Scandinavian market with SAS and TUI Nordic, in the Asian market with Qatar Airways, and finally in the low-cost sector with Ryanair. Even though VIP activity began to diminish in 2015/16, a recovery began due to an aggressive and quick management decision to no longer depend on the handlers, which control the VIP sector, and to go directly to the airlines, brokers and major players in this niche market. Newrest Cyprus started a strong collaboration with Jet Stream, a Saudi-owned VVIP Operation that inaugurated a base in Cyprus, and at the same time began direct activity with Vista Jets, DC Aviation and Jet Story, to name a few. Newrest has a steady presence in the contract Catering business by providing catering services to a detention centre as part of a global facility management contract. As for QHSE, Halal Certification was awarded and subsequently renewed. 2016/17 will be a very interesting and challenging year in the Cypriot Inflight market with the potential of two start-up Cypriot airlines, with different service levels and business plans, the initiation of Retail on Board by the local airlines, setting up proper infrastructure to support this new activity, continued efforts to increase productivity, strengthening its operations and continuing to promote itself directly in the VIP market. Newrest Cyprus welcomes the challenges ahead and continues its commitment to high performance standards and full customer satisfaction.

C y p r u s / G r e e ce

due to the devalued Russian rouble. Regional Greek Airlines with bases in Northern Greece, Crete and Rhodes, continued to grow.

GREECE 105

Inflight customers

In spite of the on-going crisis, Greek tourism continued to prosper. Overall, during the period of January through September 2016, Athens International Airport traffic reached 15.6 million passengers, which translated to a 10.2% increase from the same period in 2015. This allowed Newrest in Greece to attain vital targets in the Inflight sector. The production unit in Athens had a very good year in terms of revenue compared to last year’s results. This helped the Greek subsidiary to achieve an overall 9.3% gain in Inflight turnover compared to 2014/15. COUNTRY MANAGER

Manuella KAPAGIANNIDI

Clients

29,000 Meals served every day

▲ + 7.0 %

Managed turnover increase in Greece

During 2015/16, Greece was in an extremely difficult political and financial situation with the on-going refugee crisis, which continued to add enormous pressure on Greece, as well as regional turmoil in Turkey and Egypt. Russian tour operations increased; however, the Inflight catering sector did not directly benefit as Russian Airlines continues to practise return catering

Key factors in this growth were: Aegean Airlines Group expanding its presence internationally, as well as Ryanair adding a fifth aircraft to its Athens fleet and one summer season aircraft in Corfu. Additionally, long-haul Inflight activity continued to increase in Athens. Athens International Airport welcomed United Airlines with daily operations for the summer season and North American companies (American Airlines, Delta and Air Canada) prolonged their respective summer seasons and introduced additional weekly flights, thus providing stronger revenue performance for Newrest in Greece. The business with Asian airlines continued to grow as Emirates added five weekly flights from Athens to Larnaca and Dubai. Unfortunately, British Airways adopted the practice of return catering in 2016. Lastly, Athens and Greece showed strong performance in VIP flights with impressive growth and efficiency. Newrest Greece’s peripheral activity experienced enhance performance in most of the islands with a 9.5% increase in revenue due to growth from Northern and Central European Charter programs and Ryanair activity. Thessaloniki-based Astra Airlines restructured its program and began an intense European flight schedule from Heraklion, Crete. Additionally, Ellinair, another Thessaloniki-based airline, initiated operations at Heraklion, Crete, with flights to Russia. In the Catering sector, revenue decreased by 9%, as three contracts were lost and there were no new contracts signed. The Catering activity continues to suffer from the deterioration of market conditions for many companies and the decrease in consumer purchasing power. In terms of QHSE, the Greek subsidiary renewed its Halal certification in 2015/16.

061

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062

Thanks to its dedicated staff, Newrest in Greece was able to make 2015/16 another successful year. Continuing these values is the key to ultimately reaching our goals in 2016/17. The Newrest Greek subsidiary will face a number of challenges such as: facilitating the needs of new small Greek domestic and charter airline start-ups, potential new Asian airlines entering the Athens market, seeking greater efficiency and gains in productivity, increasing revenue by putting emphasis on a stronger presence in the airline lounges throughout Greece, and continuing to strengthen the subsidiary’s position in the VIP Inflight sector.

THE NETHERLANDS COUNTRY MANAGER

Jurgen VAN DE PORT

Production unit

Loading for IranAir – Netherlands ▶

7,500 Meals served per day

Clients

▲ + 15.1 %

Managed turnover increase in the Netherlands

The 2015/16 period was again full of unforeseen developments in the Inflight catering industry and the economy at large. Considering those factors, Newrest takes pride in the fact that the company achieved satisfactory results in terms of both revenue and growth.

This proves that subsidiary success is not based on short-term gains, but on a very solid foundation built by gradually moving the company to a higher level. Since the start-up of Newrest Inflight in the Netherlands, in 2004, the company has achieved impressive growth, far beyond anyone’s expectations. The keys to this success are a strong customer and results orientation, as well as the Group’s unique management philosophy. A key project for 2015/16 was to continue reducing costs while achieving higher productivity. The investments made in the unit and staff during previous years resulted in it becoming better known on the Dutch market. Premium airlines are now more interested in Newrest in the Netherlands. Serving Qatar Airways, a 5-star airline, for more than one year now, is paying off. More Skytrax-rated airlines flying from Amsterdam are finding their way to Newrest Inflight in Netherlands. The subsidiary is currently participating in four calls for tenders. The strong growth in passenger numbers at Amsterdam’s Schiphol airport, and its being world’s number two hub airport, resulted in an overall growth in Newrest’s existing customers: EasyJet has doubled its number of home-based aircraft from 4 to 8, Air Canada and Qatar Airways have swapped their Dreamliners for bigger aircraft. Transavia continues to develop, thanks to its flights bound for destinations across Europe and on the Mediterranean rim.

T h e N e t h e r l a n d s / Po r t u g a l

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In the Netherlands, the Dutch subsidiary obtained ISO 9001 and Halal certifications. The greatest achievement contributing to was being awarded Best Start-Up Station 2015 recognition by Qatar Airways. Looking to 2016/17, Newrest in the Netherlands will face new sets of challenges. In order to be prepared to deal with them, the subsidiary will stay committed to its mission to achieve continued profitable growth in the Inflight catering business and integrated management services with company airline customers. At the same time, Newrest in the Netherlands will strengthen its focus on innovation while maintaining a commitment to continuous improvement in its dayto-day activities.

P O RT U G A L 93

Clients

COUNTRY MANAGER

Alexis DE MONPLANET

Client

Celebration of the contract signed with Evelop/Orbest – Lisbon, Portugal

385

Catered trains per week

◀

a Volkswagen special event in partnership with Czech Airlines. Its increased turnover was accompanied by positive results due to better cost control and higher productivity as a result of restructuring measures undertaken during the previous period. ISO 9001 certification was obtained for Lisbon and will be sought for Faro in 2017. The priorities are now expanding its market and modernising the means of production.

▲ + 35.0 %

Managed turnover increase in Portugal

The 2015/16 period was satisfactory for Newrest’s operations in Portugal. This subsidiary is mainly devoted to the Inflight and Rail sectors (62% and 36% of turnover, respectively). In the Inflight sector, turnover increased 10%, based mainly on the increased traffic of its two main customers, Ryanair and United. A major contract with Evelop/Orbest was signed in Lisbon. The Faro unit was especially fortunate this year to benefit from

In terms of Catering, business activity remains stable: the Faro airport Catering contract was renewed for around 150 meals daily. In the Rail sector, the Portuguese subsidiary currently operates under three contracts with the Comboios de Portugal company for the Alfa Pendular high speed trains and its International and Intercities lines. The 2015/16 period enabled the subsidiary to keep turnover constant for the perimeter (International and Intercities): +2% compared to the previous year. Kick-off of the Alfa Pendular contract on October 1st, 2015, led to a €2.2 M leap in turnover. However, the problems related to landing and incorporating this new contract meant that the subsidiary experienced lower cost effectiveness. 2017 will offer a chance to fully benefit from the synergies created by mutualizing all three contracts.

064

S PA I N 215

Inflight customers

COUNTRY MANAGER

Frédéric GATTEAU

140

Catering customers

40,000 Meals served per day

The double-pack practice of the Nordic companies was also adopted during the period by TUI Germany and had a strong effect on the Canary Islands.

▲ + 8.9 %

Managed turnover increase in Spain

In Spain, Newrest closed out the 2015/16 period very well, with an 8.9% growth in turnover. The problematic political context in Eastern Europe and political troubles in Turkey, especially, generated a positive flow of re-directed tourism to the Mediterranean area, and Spain got full benefit in the period. This was even the case despite the shut-down of operations by Russian companies such as Siberia Airlines, Ural Airlines and Orenburg Airlines. On top: Start of operations with Cathay Pacific Opposite: Menu aboard presentation for Air Europa in april 2016 – Spain ▶

However, the airlines that are Newrest’s customers in Spain experience great growth during the period, especially Air Europa, Newrest’s largest customer in Spain. There is no doubt about Spain’s attractiveness to the countries in the Middle-East: Emirates based its second A380 in Barcelona in December 2015. Norwegian Airlines, which has a large presence in Spain, inaugurated its 7th Spanish base of operations in Palma de Majorca. In addition to the inherent growth in its current customer base in Spain, the subsidiary there gained five new customers in the second semester: China Airlines, Saudia Airlines, Ethiopian Airlines, China Eastern Airlines and Plus Ultra. The Spanish subsidiary continued its focus on development into other sectors and enhanced its presence in Catering in the Balearic and Canary Islands. Another potential area for growth was initiated this year: Hotel services in the Canary Islands, a sector that should be stepped up in the coming year.

Spain / Switzerland

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◀ Geneva Natural History Museum cafeteria – Geneva, Switzerland

S W I TZ E R L A N D COUNTRY MANAGER

Philippe TÉTU

Inflight customers

Clients

sector but grew in the Airport lounges area. It also increased in the Catering sector, and especially in Concessions.

Points of sale

▲ + 23.5 %

Managed turnover increase in Switzerland

During this year, the business activity of Newrest Canonica, the Swiss joint venture, increased substantially over the preceding year: turnover was stable in the traditional Inflight

In terms of Inflight sector, Newrest Canonica’s sales stabilised with regular airlines and dropped slightly in business aviation, in the general context of reduced VIP flights at the Geneva airport that started in 2015. Newrest Canonica managed to renew to of its main contracts, i.e. with United Airlines and Etihad Airlines. At the same time, Newrest Canonica won the bidding to manage food services for Swiss International Airlines three lounges at Geneva airport, thus enabling it to reinforce its reputation for quality and efficiency, serving up to 1,000 passengers per day in their three lounges. High loader in Geneva airport (GVA) – Switzerland ◀

066

Catering services – Switzerland ▶

Newrest Canonica obtained new contracts in the Catering and Concessions sectors, specifically with the inauguration of food service outlets at the Geneva Museum of Natural History in December 2015 and the Chaplin’s World museum in Corsier-sur-Vevey, in April 2016. This Swiss joint venture also won the bidding for the Caisse de Compensation in Geneva, which will start operations in November 2016. In terms of investments, Newrest Canonica renewed its fleet of utility vehicles for Inflight catering and will do the same in 2016/17 for the vehicles used in Catering, specifically in the growing activities related to banqueting. Likewise, the centralised kitchen project for local catering that was approved the previous year received building permits and the works were started at year’s end in 2016. In the Quality area, Newrest Canonica renewed its ISO 9001, ISO 22000 and ISO 14001 certifications. In Catering, Newrest Canonica is committed to getting its restaurants certified with GRTA, Terre Vaudoise and Fourchette Verte supply labels that guarantee nutritional quality and balanced menus. Likewise, this Swiss joint venture also takes part every year in the ‘Semaine du Goût’ (Taste Week), which highlights flavourful menus. Newrest Canonica is continuing its digital upgrades with the renovation of its Internet marketing site and forthcoming Newrest application that will enable selected customers to check key information about their restaurant on their smartphones.

UNITED KINGDOM COUNTRY MANAGER

Peter BERKELEY

Production units & logistic centres

6,300 Meals served per day

Clients

▲ + 127.8 %

Managed turnover increase in the United Kingdom

During the year 2015/16, Newrest Servair in the United Kingdom enjoyed a substantial increase in volume by securing new business from BMI Regional,

Switzerland / United Kingdom

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Loading for Shaheen Airways – United Kingdom ▼

The joint venture’s pick-and-pack expertise throughout the United Kingdom has brought savings that it shares with customers. Their need for accuracy, flexibility and innovation is a constant demand that the company thrives on.

Eastern Airways, Flybe and also the first long-haul carrier with daily flights from Manchester. Newrest in the United Kingdom now has 8 units: London City, Birmingham, Manchester, Southampton, Bristol, Exeter, Edinburgh and Glasgow. Serving 8 other United Kingdom airports, Newrest in the United Kingdom operation has a wide reach servicing more than 250 flights per day. This British subsidiary is especially pleased that its relationship in London City, Glasgow and Edinburgh with British Airways was renewed for three more years, proving that great value and consistent service are recognized by our customers. The Club European product continues to be Newrest’s focus in the United Kingdom, and is recognized as one of the highest quality club menus in the customers’ network.

Strengthening the relationship with customers is key to the company’s future. Newrest in the United Kingdom has now opened full aircraft cleaning (internal and external) services at two United Kingdom sites and plans to expand this to a third. This is especially helpful where the joint venture operates at smaller airports. The additional revenue and skill set allow the units to build a stronger team. The expansion of United Kingdom operations has been developed to allow for strategic growth, especially for those customers that demand a wide reach within the United Kingdom. The focus on internal development over the past two years has paid dividends. Newrest in the United Kingdom has a skilled staff who share their experience and help the whole team to grow and develop. Newrest Servair is proud to have achieved ISO 9001 in the city of London and Newrest has set a challenging goal to roll this out to all United Kingdom sites in 2017.

Presentation buffet – London, United Kingdom ◀

N O RT H A F R I C A

Algeria Egypt Ghana Guinea-Conakry Morocco Niger Nigeria Tunisia

248,200

158.3 M €

9.4 %

Meals served per day

Managed turnover 2015∙16

of Group’s managed turnover

TUR NOVER DISTRIB UTION (Total managed turnover 2015∙16 excluding Saudia Catering)

62.4%

23.7%

I NFLI G H T

C AT E R I NG & REMOTE SITE

13.9%

R E TA I L

Introduction

VICE PRESIDENT NORTH AFRICA

Marc STARKÉ

During the 2015/16 period, the North Africa division experienced a 47% increase in turnover, as a number of countries in the division rebounded in the year. This was due to a combination of several positive factors: maintaining the level of marketing and operational activities in Morocco, substantial growth in earnings and profits in Algeria, a significant resumption of Remote site and Catering activities in Tunis, and stellar management performance in Ghana. We should also highlight the fact that incorporation of turnover and earnings from Nigeria was not included in this area until last year. The Moroccan staff kept up the pace of growth started three years ago and the country closed out the period with a 23% increase in its turnover, exceeding 80 million euros. This outcome was partly due to renewal of the contract with the prisons, but also to growth in the Education sector (12%) and in Inflight catering operations (34%), and to the start-up of airport and bus station Concessions under franchise. Algeria experienced major growth since it nearly doubled its turnover compared to the previous period. This result was mainly due to the expected increase in the value of the Remote site contracts in the south of the country. This marketing performance was possible due to top-quality work in management and administration of the business activities, thus providing earnings that steadily increased throughout the period. During the 2015/16 period, despite unstable economic, political and security conditions in the country, Newrest in Tunisia began renewed growth in its operations, specifically in the Remote site and Catering sectors (34%). The staff in Tunisia also consolidated and increase the Group’s presence in the healthcare markets (60%). In the Concessions sector, Newrest management in Tunisia signed and implemented partnerships with international companies such as ‘Pomme de Pain’ and ‘illy’, in line with the Group’s strategy in this area, thus producing strong growth in its bus station business activities (35%).

Business ended in Niger in September 2016 when the AREVA contract was not renewed, thus leading the Group to close down operations in that country. Newrest nevertheless had a good year in Niger, in terms of management, meeting its budget goals despite tough economic conditions. Newrest prospered in the 2015/16 period in its desire to increase growth in Ghana by initiating new business sectors. With a level of quality praised by its customers, Newrest’s turnover in Ghana increased by 35%. The country’s management underwent changes at the end of the period and the challenge of the new administration is to maintain and improve on the quality of management achieved in 2015/16. Business operations in Guinea did not meet all of the expected objectives. In fact, despite the end of the Ebola epidemic, the country has yet to recover economically and operations at present are limited to Inflight catering, with a volume of business that is too low. During the period, Nigeria became part of the North Africa division after the Group took a substantial share in the capital stock of ASL Nigeria. Operations dropped off considerably, mainly due to the economic crisis in this country. However, the Newrest Group is very enthusiastic about the prospects of its joint venture in Nigeria. Reincorporation by management staff of the Group’s rules meant that the country’s operations became truly profitable, especially due to an overhaul of the procurement policy that produced tangible results. An enhanced standing for duty free activities also served to increase earnings in this sector, where Newrest’s input is much greater than in the past. The challenges to be faced there are now commercial since Newrest ASL in Nigeria expects to sign and kick off partnerships with major’s Group customers such as Emirates, British Airways, Qatar Airways, etc. For 2016/17, there are clear goals for this area: maintaining the lead position in Morocco, solidifying accomplishments in Algeria with the start of operations in the Inflight sector, renewal of airport Retail, and maintaining commercial activities in the Catering and Remote site sectors in Tunisia, sustained commercial results in Ghana in order to enhance the Group’s growth in all sectors, implementation of all operational and administrative procedures in Nigeria, and the initiation of new activities in Guinea.

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070

ALGERIA 6

Clients

COUNTRY MANAGER

Bruno HERICHÉ

Sites of operation

Points of sale

▲ + 68.0 %

Managed turnover increase in Algeria

In the Remote site sector, the fall in crude oil prices dramatically changed the economic environment in Algeria: several projects were either halted or postponed. Despite this difficult situation, the subsidiary improved its financial earnings thanks to the hard work of on-site operational teams and also thanks to the complete restructuring of support functions and the implementation of Group tools. The delayed impact of the previous year’s contract signings with LEAD, Petrofac, Tecnicas Reunidas, Groupement Touatgaz, CCC, Duro Felguera and Sinotharwa paved the way for a 120% increase in turnover. However, even though the objective for 2016 was to stabilise activities and build customer loyalty, in view of the operational difficulties linked to exponential growth in 2015, the Algerian subsidiary was forced to concede management of the KCA remote site and 4 of the 7 rigs in May 2016. Compensation came when Sinotharwa entrusted Newrest with Rig ST15, located close to Timimoun. The airport Retail business experienced an increase in turnover by 8%, thanks to mainly sports-based commercial action in collaboration with suppliers, the revitalization of the product offering and the renovation of points of sale at the International Terminal. In the Catering sector, the morose economical context disrupted investment plans for several clients and many of the projects planned and budgeted in 2016 were postponed until the 2017 fiscal year. However, despite the termination of the Technip contract (demobilization of the Arzew site) at the end of 2015, business turnover remained stable.

Algerian team celebrating Newrest 10th Anniversary – Algeria ▶

The 2015/16 period presented a difficult economic context with clients in search of major savings. Newrest was able to execute a variety of projects and assert its position as a leader in Algeria. Concurrently developing sales on the Remote site sector, Newrest improved its efficacy and operational profitability for production units throughout the year in Algeria.

The increase in meal service in the school sector contributed to maintaining a balanced turnover. Many events and activities were organized for schools, notably the ‘Ateliers du Goût’ (Taste Workshops) offered to kindergarten children at the APEH. Contracts landed at the very end of the fiscal year with ‘Société Générale’, ‘Renault Algérie’

Algeria / Ghana

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and the IMC provide an optimistic outlook in terms of growth for Newrest’s Catering business in Algeria for 2016/17.

GHANA 1

Production unit

COUNTRY MANAGER

Nicolas BLAKE

18,600 Meals served per week

Clients

▲ + 29.1 %

Managed turnover increase in Ghana

In the 2015/16 period, Newrest Ghana had mixed business experiences between Inflight customers who stopped flight

operations to Ghana, such as Lufthansa in October 2015 and Iberia in May 2015, yet beating out the competition in the Royal Air Maroc tender. Newrest’s expansion of business operations into corporate catering (Embassies and High Commission), lounge and pastries, and delivery to non-inflight customers. The exit of Lufthansa Airlines and Iberia Airlines from the Ghana market notwithstanding, Delivery bays of Accra’s Inflight unit (ACC) – Ghana ◀

072

Newrest in Ghana experienced greater growth in terms of operational performance, and managed to achieve increases in turnover of 29.1% over the previous year. This was achieved through the stricter purchasing measures and restructuring that were

Catering, increase Inflight operations and retain the contracts held. Newrest in Ghana plans to continue to increase its local raw materials purchase volume with a focus on good-quality products and to maintain good audit scores in Quality, Safety and Security for current and prospective clients.

G U I N E A - CO N A K R Y COUNTRY MANAGER

Jean-Luc SADRAN

Production unit

implemented, increased corporate catering to Embassies and High Commissions, pastries deliveries to the Airport Lounge (Adinkra) and IBIS Hotel, and the start-up of Royal Air Maroc Inflight catering, which began on June 2nd, 2016, with four flights per week. During the financial year, new menus were created and introduced for two major customers and their respective Catering contracts were renewed, and the subsidiary qualified in the food safety audit that was conducted by one of the Group’s major customers. Newrest in Ghana continued to maintain excellent customer relations and trust with the renewal of all its contracts, with positive remarks received throughout the year from Inflight customers and corporate clients (letters of commendation from the French Embassy, SWISSPORT Ghana and Israel Embassy). Newrest moved into its brand new Inflight kitchen located less than 300 meters from the International Airport, and full operations from the new kitchen started on October 15th 2016. The subsidiary’s goal for the coming 2016/17 year is to continue increasing its business in corporate

1,400 Meals served per week

▼ - 47.0 %

Managed turnover decrease in Guinea-Conakry

The 2015/16 period was a difficult year for CGA Newrest, our joint venture in Guinea. The Ebola epidemic, which continued until June 2016, had an enduring effect on all areas of operations in the country. At the outset of the period, the

G h a n a / G u i n e a - C o n a k r y / M o r o cco

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Guinean economy, already severely weakened by 18 months of the epidemic, experienced a free-fall in the prices of mined raw materials that led to further deterioration of the economic conditions. Many mining projects are on stand-by or have simply been abandoned. This was specifically the case for the world leader after having been in Guinea for 20 years. Under these conditions, the joint venture restructured itself, focusing on its Inflight operations, where it continued and increased efforts to improve management and train personnel.

M O R O CCO 24

Clients

Sites of operation

COUNTRY MANAGER

Marc GIRAUD

157 Clients

42 Point of sale

In terms of QHSE, CGA Newrest made every effort to strictly comply with all the new procedures, precautions and inspections imposed by the country’s public health problems. In April the joint venture received the Inflight product auditors from its primary customer, Air France, with extremely positive results. At present, the epidemic has run its course and Inflight activities should resume fairly quickly as the prices of raw materials for the mining industries return to levels where an ROI can be expected, thus producing a flow of business through the many contracts associated with them. CGA Newrest staff continue to be optimistic and hopeful about the coming year, in which Guinea should be able to resume a normal level of economic activity. The joint venture is thus prepared to step into new contracts in the Inflight and Remote site sectors related to the mining industries.

▲ + 21.0 %

Managed turnover increase in Morocco

In the 2015/16 period, Morocco experience a major increase in its turnover and operational earnings, and ended the period with a 21% increase in its consolidated turnover.

074

duty free points of sale affected by ONDA’s security measures since March. In 2016, Newrest in Morocco opened its Academy, located at its new headquarters and equipped with an on-the-job training restaurant to instruct its employees in all Group sectors. This focus on upgrading its employees’ skills should enable Newrest to comply with the Group’s strategic planning: maintaining its leadership in Catering and in airport and bus station Concessions, while at the same time developing the Rail and Inflight markets. These results were produced by good operational work by the staff and were further enhanced by actions to mutualise back office resources and consolidate purchasing by our two companies: Atasa and Newrest Maroc Services. In the Catering sector, Newrest in Morocco was part of the start-up of the prisons contract and now manages 24 centres in Rabat and Fès. A training and re-training program was set up in cooperation with the ‘Direction Générale de l’Administration Pénitentiaire’ (General Prisons Management Division). A partnership was established with the Mohammedia Hotel Management School and an on-the-job course set up to train twelve graduates in Catering techniques. This subsidiary currently has the following among its new customers: Promopharm, the CDG headquarters, ‘Sana Éducation’, the private hospital of Marrakech, the Ebertec Group, the ‘Pierre-deRonsard’ school in Rabat, the BMCE Data Centre and the headquarters of ‘Crédit Agricole’. In terms of Inflight catering, the inauguration of the new Casablanca production unit was a major step up that specifically allowed us to land a contract with the Etihad Airways company. Operations started in January 2016 and include a regular, daily flight from the Mohammed V airport in Casablanca and two flights weekly to the Rabat-Salé airport. Operations for VIP flights also contributed strongly to growth of the Rabat unit’s turnover, which increased 75% over 2015. Newrest’s airport and bus station Concessions in Morocco increased by 13.9%. This growth was mainly due to the success of the Group’s franchises at the Mohammed V airport in Casablanca and to inauguration of the Paul company’s operation at the Rabat airport. Atasa’s turnover decreased 17.5% from the previous period because of the number of

For the 2016/17 period, in the Catering sector, Newrest in Morocco will stress group training activities, enhanced use of digital systems, and deployment of the Contratek management program. This subsidiary will open a fourth production unit in Morocco in early 2017 and, after having won the tenders, six new points of sale at airports (in Marrakech and Casablanca).

NIGER 1

Client

COUNTRY MANAGER

Jean-Pierre DE VIDO

Sites of operation

Point of sale

▼ - 24.0 %

Managed turnover decrease in Niger

The 2015/16 period was problematic for Newrest in Niger due to the major decrease in business of its main customer, AREVA.

M o r o cco / N i g e r / N i g e r i a

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NORTH AFRICA DIVISION

Newrest in Niger continues to provide catering and hotel services to the Cominak and Somair companies in Arlit. More than 300 meals are served daily. This subsidiary has dealt with the challenge and is continuing its actions to increase business in the country. Several contracts have also been renewed.

NIGERIA 2

Production units

COUNTRY MANAGER

Laurent MOUSSARD

Clients

8,900 Meals served every day

The contract with the Barkhane troops located in Arlit was renewed: 60 meals are served daily. For the Barkhane troops set up at the Niamey airport, Newrest in Niger installed a laundry to wash bed linens. In March 2016, the contract with Orange telecommunications in Niger was renewed for management of its company restaurant. In that same month, the Group decided to close the two ‘Daily Breaks’ located at Total stations after a major decrease in turnover. Despite the tough economic conditions in the country, staff remain confident about future growth for Newrest in Niger.

Following the entry of the Newrest global brand into the Nigerian market in 2015, the year 2016 brought significant progress through the implementation of a re-organization plan for both management structure and operational processes. This was crowned with the completion of the name change: Newrest + ASL became Newrest ASL Nigeria PLC.

076

Nawara Camp – Tunisia ▶

In spite of the economic challenges in the country, Newrest ASL, under its new management, has achieved a remarkable milestone in its operations in Nigeria. The buy-in of the management and staff of the new company made the transition seamless. The Lagos and Abuja Inflight units experienced a major transition in the last year: the joint venture underwent restructuring and thus reorganized its processes and procedures. This produced positive reports from all the audits conducted, both by clients and by the regulatory agencies in Nigeria, and had a significant effect on profitability. Managing changes is a continuous process that requires nurturing and frequent assessment to ensure there is suitable, open communication about the goals set. The company served 103,310 guests at airport lounges: the Heineken bar has maintained its status among the all-time favourites of passengers at the Lagos international terminal. The unique duty free shop, Reacon duty free ‒ almost 18 years old ‒ was revamped in June 2016, focusing on 5 major categories (tobacco, alcohol, fragrances, confectioneries & local souvenirs) and has seen a steady growth in sales since then. As a whole, the staff embraced these changes with enthusiasm and worked hard to surmount obstacles,

and this culminated in several internal promotions to some senior positions including positions formerly held by expatriates. The unfortunate downturn in the business environment caused by falling oil prices (Nigeria’s biggest revenue stream), devaluation of the Nigerian Naira and issues affecting on foreign exchange, adversely affected the Inflight sector (Newrest ASL’s current main activity). However, with all the changes in place, the joint venture is looking forward to the coming year, which will also, despite being full of challenges, provide a positive outlook for the company’s expansion beyond the Inflight sectors, bringing further Newrest know-how into Nigeria.

N i g e r i a / Tu n i s i a

TUNISIA 23

Clients

COUNTRY MANAGER

Nicolas LETELLIER

Sites of operation

27 Points of sale

▼ - 13.9 %

Managed turnover decrease in Tunisia

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Activit y Repor t 2015 ∙ 1 6 ▶ 03 Operating Per for mance

NORTH AFRICA DIVISION

environment still affected by a large slow-down in the country’s economy, and despite tense security conditions and still nascent political structures and policies, Newrest in Tunisia began to turn back the tide in terms of growth in its operations. These changes were especially evident in its Catering activities since Newrest in Tunisia closed out the period with growth of 34% over the previous period. The resumption of business was extremely intense in the Remote site sector, which more than doubled its operations of the last twelve months. Rendering its partnership official with the AMEN Santé Group and the Abraaj company enable the Tunisian subsidiary to gain the flagship position on the market for private clinics, with subcontracts for seven healthcare institutions at the end of September. The beginning of the next period should mean new contracts with five more institutions. The 2015/16 period also brought favourable results for the bus station Concessions sector, with the installation of the Pomme de Pain and Alta/Illy lines at the TOTAL station in Grombalia, which inaugurated a ramp up in Newrest’s offerings in Tunisia. The Airport Concessions sector was greatly disrupted by the loss of the largest international airport site at Tunis-Carthage. However, the work done to upgrade our tender, to apply Group processes and to develop new passenger services served to offset a major portion of this loss of perimeter.

The 2015/16 period was marked by a spectacular upturn in all of the Tunisian subsidiary’s business activities.

In the Catering sector, Newrest in Tunisia renewed all of its portfolio of certifications: ISO 22000, ISO 9001, ISO 14001 and OHSAS 18001. For airport Concessions, the Tunisian subsidiary has undertaken a similar process in order to certify its production zone at the Tunis-Carthage international airport.

Following a period of major disruptions due to significant shrinkage in all of its activities, and an economic

The next period will be marked by two major projects: renewal of nearly all the airport Concessions and continued growth in Catering operations. Below: Retail points of sale ‘Pomme de Pain’ and ‘illy / Alta Café’ – ‘Total Grombalia’ station located on the highway linking Tunis to south Tunisia ◀

SOUTHERN AFRICA

Angola Cameroon Congo-Brazzaville Gabon Madagascar Mozambique South Africa Tanzania Uganda Zambia

41,000

78.0M€

4.6 %

Meals served per day

Managed turnover 2015∙16

of Group’s managed turnover

TUR NOVER DISTRIB UTION (Total managed turnover 2015∙16 excluding Saudia Catering)

33.1%

I NFLI G H T

65.0%

C AT ER I NG & REMOTE SITE

1.9%

R E TA I L

Introduction

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SOUTHERN AFRICA DIVISION

COO SOUTHERN AFRICA

Alexandre LELIÈVRE

Newrest’s Southern Africa division made substantial progress on thewhole in the year despite some challenges. Newrest’s business on the west coast of Africa is dedicated to supporting the oil and gas sector. The Group’s activity boosted teams in Cameroun, Congo, Gabon and Angola by finding solutions for clients and prospects seeking to reduce costs. It came as no surprise that despite the crisis in the sector, Newrest managed to secure new contracts in 2015/16. The three countries dedicated to Inflight activities—South Africa, Uganda and Zambia—are now well established, upholding a strong image in their respective markets. Again, competitiveness has been Newrest’s priority in 2015/16. This aggressive approach enabled the company to win important contracts (dnata Newrest), diversify its line of products (Uganda) and secure long-term partnerships with stakeholders in the country (Zambia). Newrest is now well positioned to initiate a new phase of development, since the Group has earned the trust of airlines in the region, while supporting international companies in their business in the region. Ambatovy is one of Newrest’s largest mining clients in Madagascar and a leader in the industry. This long-term partnership has been renewed with the signature of a contract extension beyond 2020 allowing the subsidiary to deliver strong savings year after year while Ambatovy is facing important market difficulties. Ambatovy recognises Newrest’s expertise and ability to evolve while generating savings. The company’s scope has increased and innovations are systematically rolled out to improve residents’ quality of life. Within this context, Newrest has changed its approach to its suppliers. Increasing their visibility of Newrest’s needs is a gateway to better prices and quality. Performance improvement has been facilitated by placing significant focus on systematizing the Group’s way of working.

In terms of Quality and Hygiene, dnata Newrest is now ISO 9001 and ISO 22000 certified. Cameroun, Congo, Gabon, Zambia and Angola will be certified in 2017. Uganda and Madagascar retained their certification and are now moving toward ISO 9001:2015. Regarding IT, Winrest has been successfully integrated into all Remote site countries while Winflight is now mastered in all Inflight countries. For back office systems, Sage will be put to maximum use as an integration tool between procurement, human resources and accounting units. Newrest’s integration with the client is initiated via the communication and efficiency of both parties’ systems. Improving Group competitiveness is an endless quest in the ever-changing environment of Southern Africa. As such, a productivity improvement project is deployed in all countries of the region with an analytical approach to our processes. Project management as well as financial awareness of the team at large are important regional themes toward efficiency and productivity. In general, Newrest’s social environment has improved with a more structured and progressive relation with employee representation bodies. Training and involvement of shop stewards has been key. The countries in the region are now stable and equipped enough to face the challenges ahead.

Mobilization for the Remote site’s contract with Total E&P Congo (TEPC) – Port of Ulsan, South Corea ◀

080

ANGOLA 3

Clients

COUNTRY MANAGER

Sountou BOUSSO

Sites of operation

9,800 Meals served per day

The subsidiary has thus confirmed its agility on an immature market by strengthening its position on the Angolan offshore with the opening of major contracts. Newrest in Angola has confirmed its position as leader on the hotel management market for offshore platforms and Catering. Newrest currently serves 9,800 meals a day in Angola to its six clients, and employs 520 people.

▼ - 6.9 %

Managed turnover decrease in Angola

The year 2015/16, marked by an unstable and complex economic environment was, for Newrest in Angola, a year of stabilisation in terms of operational excellence and business expansion. School cafeteria ‘Entre 2 cours’ – French school in Luanda, Angola ▶

Newrest in Angola has developed its marine-based business by winning the major OPS Angola contract (SBM subsidiary). The subsidiary has been entrusted with complete hotel management for three FPSO vessels (floating production, storage and offloading vessels used in the oil and gas industry) on the 15/06 block, which represents over 300 POB. This contract opens up new positions with ESSO and ENI, operators of SAXI, MONDO and NGOMA, respectively. The subsidiary therefore strengthened its presence on the Kwanda logistical base in Soyo with the opening of a central warehouse to back up operations conducted by Somoil’s block 2, and Esso and Eni’s block 15/06. Newrest in Angola also began its marine refuelling business (Shipchandler), as well as land-based operations for Somoil and CGG. In the land-based Remote site sector, the subsidiary won the catering contract for the Dande base located in Barra do Dande for client Angoflex (a Technip subsidiary) for daily catering to 350 POB. Newrest’s commercial expansion in Angola was also boosted by the marine refuelling business, as Newrest added major clients to its portfolio in search of international standards. However, the Angolan subsidiary was forced to demobilize its long-standing hotel management contract with Sonangol PP for block 2 after the block was closed. Newrest in Angola made a name for itself in the Catering and hotel management sector, beginning a contract with the Pazflor training centre for Total EP Angola. The year 2015/16 was also marked by the opening of a school cafeteria called ‘Entre 2 cours’

Angola / Cameroon

(literally: ‘Between two courses’) for the French school in Luanda. This modern restaurant has its own mobile app and website. The financial year was a conclusive one for Newrest in Angola in terms of occupational safety. The subsidiary recorded 24 consecutive accident-free months for all sites in the country. This result is evidence of the subsidiary’s ability to apply international standards and conform to its clients’ major demands. For 2016/17 Newrest in Angola wishes to confirm its expertise faced with the challenge of reducing client costs and environmental constraints. The diversity of actions, expertise and the ability to provide customizable services will be the cornerstones of success for the year to come, with an extremely demanding economic environment.

CAMEROON 1

Client

Sites of operation

COUNTRY MANAGER

Olivier GIRARD

2,000 Meals served per day

▼ - 23.0%

Managed turnover decrease in Cameroon

The drop in oil prices during the 2015/16 period had a strong impact on business in the oil sector and, consequently, on all stakeholders and subcontractors in Cameroon. Perenco reduced its staff by over 30%, leading to a reduction in the number of meals served in

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SOUTHERN AFRICA DIVISION

Cameroon by Newrest. However, during this difficult year, Newrest in Cameroon helped its main client by redesigning its logistics and improving productivity, which resulted in the renewal of the management contract for all its offshore sites. The efforts made, as well as the adaptation to the tough economic situation, enabled teams to win a contract with Friedlander Cameroun for extension work on the natural gas factory located in Kribi (seaside resort in south Cameroon). This new establishment provided an opportunity to strengthen Newrest’s position in Cameroon, in a business zone in full economic boom. At the Eneo training centre, Newrest teams must adapt to a highly fluctuating number of visits, since they may be required to serve from about 20 to 100 interns, or even over 600 people during important events. Boosted by the success of winning this contract, Newrest in Cameroon is now perfectly equipped to strengthen its position in the Catering sector. In order to provide a solution tailored to Friedlander’s needs, the subsidiary also invested in a mobile kitchen. The kitchen is transformed, adapted and equipped with professional material. This investment also enables the Cameroon subsidiary to have a small production centre that can be relocated according to client needs. Thanks to first aid training provided by the Cameroon Red Cross, Newrest supports humanitarian action to help orphans and persons in difficulty. This is in addition to financial and material aid lent to local charities. Ever mindful of providing top-quality service, Newrest in Cameroon has requested ISO 9001 certification, which would make it the only certified caterer in Cameroon. The year ahead looks promising, with a solid resumption of business thanks to contract opportunities in both Catering and the core business of Remote sites.

Safety exercices on an offshore plateform – Cameroon ◀

082

CO N G O - B RAZZAV I L L E COUNTRY MANAGER

Abraham BALIMA

Sites of operation

1,600 Meals served per day

Clients

The year 2014/15 was therefore a time of mobilization for several contracts, strengthening of logistics and consolidating the country image. This strategy was rewarded by a major contract with Total E&P Congo (PEPC). The challenge for Newrest Congo was therefore to improve its competitiveness, master its structure and optimise costs and responsiveness on all levels. The fact that oil prices remained very low throughout the financial year had a high impact on the subsidiary’s operating margins, but did not, however, stand in the way of a rise in turnover. The major oil companies (TEPC, ENI, etc.) adopted an aggressive cost-cutting policy, resulting in lower prices across the entire value chain and tough competition essentially directed towards lower sales prices.

▲ + 39.3 %

Managed turnover increase in Congo-Brazzaville

Mission accomplished for Newrest in Congo: despite losing an important contract with ENI in July 2014, the subsidiary was able to restructure itself in order to keep up its local business. Newrest’s multicultural chef team inside the FPU Likouf’s platform kitchen, on the way to PointeNoire – Congo ▶

In August 2016, ENI interrupted its contract with the TAD1 barge, for which Newrest provided services in Congo on behalf of Saipem. Despite a difficult economic situation, Bourbon signed a contract for catering aboard 5 ships after a successful test phase that lasted for several months on the Bourbon 305 unit. Geoocean, entrusted Newrest with providing services all year long. Thanks to high satisfaction from Petro Services with Newrest’s work in the past, the Congolese subsidiary was once again entrusted with catering on board the Halani 1 in the Total field, despite cutthroat competition. This operation provided Newrest with a window in terms of the bid that led to the signature of a contract with TEPC.

Container loading on a Bourbon offshore plateforme – Congo-Brazzaville ▼

of 220 POB for 4 to 5 months. Simultaneously, connection and implementation phases for the FPU Likouf began and will continue until March 2017, followed by the production phase with 225 POB. The third batch won concerns catering for the Nord Yanga platform, with 140 POB beginning February 2017, taking the place of a well-known local company. In Congo, Newrest also continued to mobilise the vessels of its client Bourbon—five ships mobilised successfully and others to come depending on the development of client activities. In this perspective, the coming year—which will include the execution of these contracts with major logistical and QHSE constraints—will enable the Congolese subsidiary to maintain sustainability and steer its future business development.

GABON 5

Sites of operation

COUNTRY MANAGER

Erik DELFOUR

Points of sale

1,600 Meals served per day

▼ - 43.8 %

Managed turnover decrease in Gabon

Thanks to the forward-moving operations of local teams, a structure adapted to the economic context and support from the Group, especially in commercial terms, the end of the financial year was marked by the signature of a major contract with Total E&P Congo (TEPC). This is a multi-part contract that began with the mobilization of an international team comprising members from different countries (Congo, Korea, Malaysia, the Netherlands and the Philippines) for Catering, hotel management and laundry services during the towing of the FPU Likouf platform from Ulsan, South Korea to PointeNoire, Congo. The mobilization of the Halani 1 Flotel took place in November 2016 with the management

Following a world oil crisis, Newrest in Gabon reduced its activities in the oil sector by 70% in Port Gentil. Sustained in this sector thanks to the trust of Total who renewed and extended its contract with an additional Flotel with a capacity of up to 300 POB, the Gabonese subsidiary also developed its operations in services on board diving support vessels. The company SEEG/Veolia renewed its trust in Newrest’s Gabonese subsidiary, which will

083

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C o n g o - B ra z z a v i l l e / G a b o n

SOUTHERN AFRICA DIVISION

084

continue with Remote Site management for the Kinguélé and Tchimbélé dams and for the Jean Violas training centre, with the implementation of digital tools and top-quality event services. In an airport with low traffic, the Retail business located in the Libreville airport also experienced a decrease in turnover, despite a change in management that was able to boost the client’s service offering and optimise the management of their activities.

MADAGASCAR COUNTRY MANAGER

François TACK

Site

Clients

The 50% drop in turnover experienced by the Gabonese subsidiary motivated the teams on site, requiring them to revisit their strategy and adapt their structure to this new volume, in order to enable Newrest to enter the 2016/17 year in Gabon with more serenity and competitive edge.

▼ - 0.1 %

Managed turnover decrease in Madagascar

Contracts

Gabon / Madagascar

085

Activit y Repor t 2015 ∙ 1 6 ▶ 03 Operating Per for mance

SOUTHERN AFRICA DIVISION

Present in Madagascar since 2006, Newrest significantly increased its activities on the island in 2013, when it won a Remote site contract for Ambatovy, a nickel - and cobalt refining company. The Malagasy subsidiary produces approximately 7,000 meals a day, spread over three main sites (at Tamatave, Moramanga and Anatananarivo). During the year 2015/16, the entire local team put all its expertise towards meeting the requirements of Ambatovy, particularly to support its cost-reduction efforts, in a context where raw material prices were falling. Newrest was forced to reduce the number of its employees on the site, directly linked to the decline in the total number of meals served, Newrest has developed its range of services in order to create savings for Ambatovy since the beginning of 2016. The responsiveness and adaptability of teams has been recognized by this client. This trust in the subsidiary’s teams resulted in the contract being extended on December 24th, 2015. Commercially speaking, Newrest in Madagascar was also able to broaden its client portfolio by winning a new catering contract for the company Outremer Telecom in the town of Antananarivo. The subsidiary is now serving over one thousand meals per day to employees at this call centre. Newrest in Madagascar is committed to offering top-quality service and also to participating in actions to help local populations. Newrest and the Entendre Le Monde association organized a week of screening for deafness and hearing problems, mainly for children, in November 2015 in Tamatave. Moreover, on June 3rd, 2016, Ambatovy and Newrest inaugurated the new Civil Protection camp in Tamatave. Ambatovy built a some of the buildings and provided vehicles and materials to this branch of the Malagasy army, while Newrest donated a camp where soldiers could be accommodated. Since June 2015, in partnership with Aéropartage and B’SaN Asso, Newrest in Madagascar has been supporting a food diversification project offered to 294 children in the village of

Cooking in Ambatovy Remote site – Madagascar ◀

Tanjondroa, which aims to introduce proteinsand calcium-rich meals. The program is supported by monthly donations from the subsidiary. As part of its desire to constantly improve its services, Newrest in Madagascar passed the annual ISO 9001 certification exam with flying colours in June 2016. This result reflects the efforts led by Newrest teams in Madagascar to implement processes to obtain maximum customer satisfaction. In parallel, the partnerships developed with the Pasteur Institute and the Royal Environmental Health Institute of Scotland both help to validate the quality of meals by the use of bacteriological testing and training for employees from the Malagasy subsidiary. Ever mindful of maintaining progress, Newrest’s forward-thinking attitude is also evident in its human resources policy: continuing training for employees, recruitment of young Malagasy citizens and recruitment of two young expatriates into the Newrest Graduate Program. Lastly, Newrest in Madagascar is proud to have closed off this year without any injuries requiring work stoppage, and this for the fourth year in a row.

086

M OZ A M B I Q U E

SOUTH AFRICA COUNTRY MANAGER

Thomas MATTHEY

Production units

In Mozambique, the oil industry slowdown and the overall economic context prevented the Group from solidifying its operations, despite local presence and solid partnerships. The Group remains confident however, given the potential of the local market. Field resources offer many opportunities, particularly in the field of Remote site, but also in Corporate and Inflight catering. Mozambique therefore shows wonderful prospects for growth in the upcoming year. Several projects have been presented in response to numerous tender processes. VIP lounge food offer in Cape Town (CPT)– South Africa ▶

13,100 Meals served per day

Clients

▲ + 18.8 %

Managed turnover increase in South Africa

dnata Newrest experienced an 18.8% increase in revenue during the period 2015/16, with tenders awarded for Inflight catering by Ethiopian Airlines & Iberia, contracts renewed by British Airways, Etihad Airways, Air Seychelles & Air Namibia, and a new approach applied to El Al. The South African team successfully opened the Emirates Lounge in Cape Town at the beginning of March 2016. Furthermore, Emirates added a third daily rotation as of July 2016, bringing the total of catered flights per day to 7 for both stations. Ethiopian Airways was launched in both stations on the 1st July 2016 with 18 flights per week, and in the beginning of August 2016, Iberia reopened its route from Madrid to Johannesburg with 3 flights per week. The joint venture is expecting the conclusion of various tenders such as Qantas, Kenya Airways and

M o z a m b i q u e / S o u t h A f r i c a / Ta n z a n i a

Loading for Emirates in Cape Town (CPT) – South Africa ▼

TA N Z A N I A 1

Client

Site of operation

Newrest Group experienced a constructive year in Tanzania, where it officially established its subsidiary amongst rich potential. Egypt Air by the end of 2016 and is confident that it can add these prestigious airlines to Newrest’s portfolio. In terms of QHSE, the Johannesburg unit obtained ISO 9001:22000 certification in April 2016, which helped the team to achieve green status in the British Airways Audit in June 2016. Certification of the Cape Town unit is planned for 1st Quarter of 2017. dnata Newrest has plans in place to open a new unit in Durban at King Shaka Airport. Airlines currently operating out of Durban include Emirates with a daily rotation, Qatar Airways, Turkish Airlines, Mango, Kenya Airways and Ethiopian Airlines. The A380 will increase its presence in Johannesburg with three added weekly rotations by British Airways at the end of October and the planned introduction on the midday rotation by Emirates to Dubai starting February 1st, 2017.

After several projects in the airport Concession sector, operations finally kicked off, integrating Remote site activities for Caroil. Newrest successfully established itself at the Mtwara site by managing the Rig C2 camp. Newrest is confident that many other opportunities will come knocking in its various sectors of business.

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SOUTHERN AFRICA DIVISION

088

Opposite, Newrest UIS loading for Qatar Airways and below for Egyptair – Entebbe airport (EBB), Uganda ▶

UGANDA 8

Inflight customers

by new customers such as Egyptair and other airlines that opened new routes, such as Kenya Airways.

COUNTRY MANAGER

Zied MANOUBI

Client

Point of sale

Newrest UIS won the United Nations MONUSCO Tender in December 2015 and started its operations in January 2016; the joint venture also won the Civil Aviation Authority Tender and started catering for their 280 staff in October 2015. Newrest UIS was awarded Best Caterer for Qatar Airways in Africa. This exciting achievement bears testimony to the determination of the Ugandan team to defend the Group’s values and image.

▼ - 15.6 %

Managed turnover decrease in Uganda

During the 2015/16 period, Newrest in Uganda has consolidated Inflight activity by renewing existing contracts. The joint venture faced some challenges with British Airways operations suspended in October 2015 and the decision of Fly Dubai and Brussels to return cater their meals. That business was moderately absorbed

Regarding citizens, the joint venture has been focusing on internal promotion and supervision empowerment and skills development. In terms of working conditions, the company offers a safe and pleasant work environment to staff, and efforts have been made to offer variety and healthy food. Staff members also benefit from a good health insurance system. Concerning the environment, Newrest in Uganda wants to give priority to local procurement

and continues to support local initiatives in agriculture development and recycling. Against corruption, Newrest UIS is committed to fair business with suppliers and customers and fights against fraud and corruption. Finally, the Ugandan joint venture went through the validation process for ISO 22000:2005 certification, achieved successfully in July 2016.

ZAMBIA 3

Clients

VVIP flights, numerous this year following Zambia’s hosting of several regional and international conferences. Teams also had the opportunity to serve many official African and European delegations, particularly presidents of Botswana, Zimbabwe, the French Minister of Ecology, the king of Switzerland and of course the President of Zambia, whose flights are catered by local Newrest teams.

COUNTRY MANAGER

Jean-Charles LANCIAUX

Client

13,300 Meals served per week

▲ + 35.5 %

Managed turnover increase in Zambia

The year 2015/16 was a record year for Newrest Zambia, with a turnover increase of almost 36% over prior year. Over 550,000 meals were prepared and served by local teams to their Inflight customers. With the arrival of the new B777-300 aircraft from Emirates, some 13% additional passengers were served and this meant exceptional seat-occupancy rates for the Lusaka-Dubai sector. As part of their restructuring plan, South-African Airways, Newrest’s historical partner in Zambia, recently stopped loading catering in Lusaka for two of their three daily flights. Their daily morning flight to Johannesburg as well as management of their lounge at the Kenneth Kaunda International Airport remains in the hands of Newrest teams in Zambia. This loss in turnover was partly compensated by business from

Despite a local economy hard hit by the fall in copper prices and despite a period of drought that incurred local inflation of +24% on food products, Newrest’s teams in Zambia were able to mobilise their efforts to improve productivity, thus obtaining a second consecutive positive financial year after many years in deficit. At the end of this year, local teams, supported by the Group’s headquarters, began negotiations with management of the Lusaka airport in order to renew the Retail contract and to boost development for the airport by building a new Inflight catering unit in Lusaka.

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Activit y Repor t 2015 ∙ 1 6 ▶ 03 Operating Per for mance

Uganda / Zambia

SOUTHERN AFRICA DIVISION

M I D D L E - E A ST & A S I A

Bahrain Oman Philippines Qatar Saudi Arabia United Arab Emirates

351,900

612.6 M€

36.2 %

Meals served per day

Managed turnover 2015∙16

of Group’s managed turnover

TUR NOVER DISTRIB UTION (Total managed turnover 2015∙16 including Saudia Catering)

73.4%

20.5%

CAT E R I NG & R E M OT E SI T E

I NF L I GHT

6.1%

R E TA I L

Introduction

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Activit y Repor t 2015 ∙ 1 6 ▶ 03 Operating Per for mance

M I D D L E - E A ST & A S I A D I V I S I O N

COO MIDDLE-E AST & ASIA

Fabien REVOL

The 2015/16 period was yet again a lively year for the Middle-East and Asia Division. Overall, the Group continued to enhance its standing in a geographic area that represents a link to major growth, in a highly competitive environment for the petroleum, gas and mining sector. At all of its subsidiaries, the division continued to deploy rigorous management of their activities and operations in order to optimise productivity and competitiveness despite exacerbated pressure on sales prices. In Oman, Newrest Wacasco stabilised sales and is helping many customers revise their work specifications so as to optimise costs for both parties. Cost-cutting and improved productivity plans that were initiated last year have been expanded. These measures continue to bear fruit both in net earnings and through active marketing. In fact, the Oman joint venture was convincing in terms of its know-how, with numerous renewals and new contracts signed, including the framework contract for all of Schlumberger’s operations in the Sultanate (call for tenders for about fifteen units, comprising the U.S. multinational’s headquarters, base camps and mobile units). This pro-active marketing was also demonstrated by obtaining new contracts in the construction sector with the Galfar, Habtoor Leighton Group and Sarooj companies. Banking on its success with the first go-round and at the request of many customers, Newrest Wacasco again deployed its ‘Healthy Living’ program. The awareness campaign on a balanced diet served to reinforce customer and consumer satisfaction. The goal for the coming year is also to deploy this ‘Healthy Living’ campaign in neighbouring Qatar. In Qatar, the 2015/16 period was another key year for the Newrest Gulf joint venture with the initiation of several new contracts. It now services: the soldiers and officers of the Lekhwiya Internal Security

Cook from QDVC Um Al Hawaya labour community – Qatar ◀

Forces, several thousand meals daily at the Waseef Al Bahara ‘workers city’, all the taxi drivers in the country and the Qatalum and Qafac companies in the Masseid industrial zone (both affiliated with Qatar Petroleum). The Ministry of the Interior has also contracted Newrest Gulf to manage two other sites (in addition to the National Command Centre) at the Police College and Police Training Institute. Lastly, since the start of the new school year, the catering operations at the French Lycée Bonaparte in Doha have been managed by Newrest staff. Nearly 1,400 students can thus benefit from healthy foods served under the ‘Daily Break’ concept. These new contracts, just as its obtaining ISO 9001 and ISO 2000 certifications, demonstrate the knowhow of this Qatari joint venture in terms of quality and mastery of QHSE. In the Philippines, our joint venture with the Supply Oilfield Services company was able to maintain its business activity and turnover during the 2015/16 period. The staff’s work in deploying qualified personnel and support services was specifically focused on the quality of the services and on customer satisfaction via the Technip contract.

092 Lunch service in QDVC UmAl Hawaya labourcommunity – Qatar ▼

B A H R A I N & Q ATA R COUNTRY MANAGER

Fabien REVOL

Production unit

Sites of operation

35,000 Meals served per day

▲ + 258.5 %

Managed turnover increase in Bahrain & Qatar

Newrest Gulf experienced an amazing period of growth in 2015/16, resulting in the multiplication its sales fourfold. The staff successively mobilised seven contracts one after the other. This started with the provision of catering services for the internal security forces (Lekhwiya), at their main base camp and training centres, for soldiers and officers. ‘Lycée Bonaparte’ French school in Doha – Qatar ▶

Then, Newrest Gulf started a catering service for the property management company Waseef at their Al Baraha workers’ city. This major project, involving 40,000 beds in accommodations, is a milestone for the company and served to incorporate a sustainable project promoting enhancement of the country’s health standards for the labour force. Likewise, the Karwa Mowasalat operation was mobilised, where several thousand taxi drivers have the opportunity to be served fresh daily meals. A few weeks later, the staff deployed further resources to the challenging mobilization at Qatalum, the national aluminium plant located in the industrial area of Mesaieed, under Qatar Petroleum management. At Qatalum, nearly 700 direct employees and contractors are served freshly-cooked meals in two cafeterias, 24 hours a day. Simultaneously, the neighbouring operation of Qatar Fuel Additives Company (Qafac) was successfully started. Both contracts contributed to Newrest Gulf’s lessons learned in the Oil & Gas / Qatar Petroleum environment. Right after Ramadan, the Ministry of the Interior extended its confidence in Newrest Gulf services by awarding it all catering services for the

B a h ra i n & Q a t a r / O m a n

state-of-the-art Police College and Police Academy. There, the subsidiary serves all national cadets and future policemen, as well as the instructors and military band members. Finally, the last site opened in 2016 was the ‘Lycée Bonaparte’ in Doha. 1,400 students can now enjoy fresh, healthy meals along with a selection of snacks proposed under Newrest’s ‘Daily Break’ concept. To support this major growth, it was essential to rapidly obtain ISO certification, which the organization achieved by being certified in the same year for ISO 9001 and ISO 22000. The local press gave this success broad recognition, along with the strong inroads Newrest Gulf has made in the local market in two years of existence.

OMAN 4

Clients

adapting to their new demands while at the same time exploring new markets. Paradoxically, Newrest Wacasco had lots of business in the oil sector due to the crisis, and helped customers who had to adapt and react very quickly. There were thus no less than 46 mobilizations and demobilizations during the 12-month period. Based on the complete mastery of operations that the staff had acquired over 34 years of operating in Oman, Newrest Wacasco was able to assist its customers during this phase and land new contracts, specifically with very enterprising local companies, such as Al Baraka, Ba Omar, Shaleem, Abraj and National Drilling Services.

Inauguration of the French School of Muscat – Oman ◀

COUNTRY MANAGER

Nicolas PAULY

Sites of operation

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Activit y Repor t 2015 ∙ 1 6 ▶ 03 Operating Per for mance

M I D D L E - E A ST & A S I A D I V I S I O N

Point of sale

▲ + 5.5 %

Managed turnover increase in Oman

Despite the crisis in oil prices that especially affected customers in Oman, the 2015/16 period was profitable for the Newrest Wacasco joint venture in Oman. This problematic time was the occasion to demonstrate to customers that the Group is capable of

At the same time, the construction sector continued to expand in our customer portfolio, with successful mobilizations for customers such as Galfar, Sarooj and Habtoor Leighton Group, with camps ranging from 300 to 2,000 workers. This year also clearly offered an opportunity to continue cost optimisation in order to keep one step ahead of the market, while continuing to improve our processes. Substantial work was done by the operations, procurement and QHSE staff. As part of

094

Offshore activity – Newrest SOS, Philippines ▼

its continuing improvement efforts and in order to provide greater safety and increase the well-being of its employees and customers, Newrest Wacasco successfully obtained ISO 18001 certification this year. This certification is in addition to its ISO 9001 and ISO 22000 certificates. Lastly, Newrest Wacasco continued to promote its social responsibility activities by taking initiatives for the well-being of its customers and employees. The 2016 ‘Healthy Living’ campaign was a success, covering 105 sites and more than 4,000 participants on four different topics. The work accomplished this year will enable us to start off the coming year with great ambitions in terms of marketing, operations and finance.

PHILIPPINES COUNTRY MANAGER

Louis-Paul HEUSSAFF

New or renewed contracts

170

Employees

▲ + 6.4 %

Managed turnover increase in Philippines

During the 2015/16 period, Newrest SOS, Newrest’s joint venture with the Supply Oilfield Services company in the Philippines, was able to sustain its business activities and increase its turnover by 6.4%.

On the commercial level, it was a very fruitful year for this joint venture that operates essentially in the Remote site sector. Overall, some forty contracts were renewed or signed with Siemens, Rubicon, NES Global, etc. In terms of Quality and Health, Newrest SOS holds ILO MLC-2006, ISO 9001 and OHSAS 18001 certifications. Our Overseas Drilling Ltd and Rubicon Intrepid customers repeated their audits in order to assess the compliance of Newrest SOS. At the end of each project, the customer is sent a satisfaction questionnaire. The results of the customer audits and evaluations were satisfactory. The joint venture decided to increase staff training and respect for the environment. For the 2016/17 period, projects are under way with the DOME X’PATS, NES Global Talent Singapore, Baker Hughes KSA and Bouygues Construction Australia companies.

SAUDI ARABIA COUNTRY MANAGER

Wajdy M. AL-GHABBAN

▲ + 5.0 %

Managed turnover increase in Saudi Arabia

The Kingdom of Saudi Arabia is focused on change with Vision 2030 and SACC has aligned to meet the challenges and position itself for future growth. The continuation of its diversification strategy has positioned SACC well for the increasing competition and cost challenges experienced within the KSA market, investment in both infrastructure and personnel has strengthened the organization to meet

O m a n / P h i l i p p i n e s / S a u d i A ra b i a

095

Activit y Repor t 2015 ∙ 1 6 ▶ 03 Operating Per for mance

M I D D L E - E A ST & A S I A D I V I S I O N

Vision 2030. The trend and increases in non-airline activity demonstrates both SACC competence and competitiveness in diversified revenue streams. Key investments for the year were the opening of the KAEC Commercial Laundry with a capacity to process 40 tons daily to serve the western area of KSA; the new 6,000m2 Medina catering unit being positioned to maximize the increased religious visitors to the region; a new accommodation complex in Dammam with improved quality of living for 240 staff and new hospitality lounges in Riyadh’s King Khalid Int’l Airport improving the facilities and experience through the innovative Wellcome Lounge format and established Al Fursan Lounge. Ongoing upgrades to SACC’s fleet saw 20 new Hi-Loaders entered service to increase capacity and efficiency of on time delivery. A Joint venture between Lagardere, SACC and Arabian Ground Handling Logistics have been awarded prime duty free sites in Riyadh and Dammam airports. Reaffirming its quality assurance has been recognized in the awarding of Silver Award –2015 QSAI Award of Excellence in Catering Quality (Europe, Middle East & Africa) presented to Dammam Unit additionally the 2015 Best Caterer awarded by Korean Air was presented to Riyadh Unit. A newly formed continuous improvement department has been created to adopt best practice lean efficiency and ensure that SACC’s cost base is reduced to maintain competitive pricing for clients. Progressive development of the organization has seen Saudization rates increase from 20.3% in 2015 (low green) to 28.1% (high green) in 2016 and the number of females working within the organization in 2016 has risen to 151 with our goal to double this number in 2017.

Al Majlis lounge – Saudi Arabia ◀

L AT I N A M E R I C A & O C E A N I A

Bolivia Chile Colombia new Costa Rica French Polynesia Mexico New Caledonia Panama Peru

91,400

126.2 M €

7.5 %

Meals served per day

Managed turnover 2015∙16

of Group’s managed turnover

TUR NOVER DISTRIB UTION (Total managed turnover 2015∙16 excluding Saudia Catering)

5.2%

75.8%

C AT ER I NG & R EMOTE SITE

R E TA I L

19.0%

I NFLI G H T

Introduction

VICE PRESIDENT L AT I N A M E R I C A & O C E A N I A

Olivier LAURAC

Despite another major slowdown this year in the mining markets, the economic context is still positive and the Latin America and Oceania Division has seen its turnover increased by 10.5% with in-depth on these fundamental points, the division began to see its operational earnings increase significantly. In Mexico, the Cancun unit, still affected by the drop in Russian markets, managed to maintain its turnover by landing the JetBlue contract and by developing its position in the private aviation market. At year’s end, the Cancun staff obtained the CONDOR contract. This year, Bolivia experienced major shrinkage in its Remote site business. Nevertheless, the Incahuasi Total contract was finally signed in June 2016 and the Bolivia staff obtained small B&I contracts for deliveries from the production unit, which was already servicing Air Europa, Starbucks and KFC. The subsidiary in Chile succeeded in boosting its level of quality in the Inflight sector, which enabled it to obtain the contract with British Airways, who will create a new line starting on 4 January 2017. The Remote site and Catering operations staff experienced a tough year in a Chilean economic market that continued to tighten up. The Chileans were, however, able to pick up two major contracts in the Antofagasta zone, thus expanding the Group’s presence in an area considered to be key to its growth. Peru had continued growth in its turnover, despite a year marked by a wait-and-see attitude in the markets, probably due to uncertainties about the outcome of the presidential election in June. The Inflight sector staff were able to pull off the Star Peru and British Airways contracts, and were ISO 9001–2008 certified. Just as the subsidiary maintained its customers in the mining market, it experienced significant growth in the Catering sector with a number of new opportunities such as Banco

de la Nacion, Protisa, SMI, San Martin and Atento, along with several TASA sites and the new head offices at Lindley. This growth enhances Newrest Peru’s standing as the leader in the Catering market. The largest gain in this sector was the contract with Backus, which has 18 restaurants that will be operational in 2017. Costa Rica completed the renovation of its San José unit. It can now manage the Air Alaska and British Airways contracts under better health conditions and deal with its new contracts: the ‘École française’ contract in B&I transport, and the Fujitsu contract in traditional B&I. The airport retail sales contract was renewed for 4 years, thus ensuring that business will be maintained. Next year, the Liberia unit will be completely renovated. In Polynesia, under conditions of low growth and with few development opportunities, turnover remained relatively stable for the period at nearly 35 million euros. The subsidiary’s performance is based on improving its productivity through strict application of the action plans and restructuring as defined for the period. In terms of marketing, Newrest continued with its overtures to governments and institutions, specifically in view of possible public outsourcing, in order to offer its experience to independently managed school cafeterias. Lastly, the Polynesian subsidiary will this year be celebrating the 10th anniversary of its presence in the territory. This is an opportunity to thank all of its customers, partners and employees for the substantial progress already made, and to look forward to celebrating its 20th anniversary in 2026! In New Caledonia, the Vale contract in Goro (the Grand-Sud plant) was implemented thanks to wonderful teamwork where the all of the transferred personnel showed remarkable enthusiasm in deploying new procedures and new work methods. That allows us to demonstrate to Vale the commitment of Newrest personnel to obtain and share gains in productivity. The Newrest Jacrégal joint venture also began efforts in terms of restructuring, optimising procurement and deploying group programs to be fully prepared for the initiation of catering services for the Medipôle centre in Nouméa in 2016/17.

097

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L AT I N A M E R I C A & O C E A N I A D I V I S I O N

098

Newrest celebrates San Cristobal – Bolivia ▼

BOLIVIA 1

Production unit

COUNTRY MANAGER

Yvon MARTINEZ

Clients

Sites of operation

▼ - 16.5 %

Managed turnover decrease in Bolivia

The 2015/16 period will be noteworthy for Newrest as the year in which optimisation actions were consolidated and the Catering business grew in Bolivia. Despite a marked decrease in turnover of 19%, the subsidiary’s earnings increased in value by 18% compared to the previous year. The efforts made in terms of procurement, food-cost management, process structuring and payroll optimisation enabled the subsidiary to gain an advantage in terms of sales prices in the B&I market. The Bolivian subsidiary initiated a partnership with four new customers for B&I catering (the St Georges School, Cotas, Yambal and Imcruz) and renewed its contracts with Starbucks and KFC. In order to support these new contracts, Newrest opened four points of sale, three of them inside the St Georges School, used daily by 1,000 students and that also serve 800 people at lunch time. The Remote site business suffered greatly from current economic conditions. MSC, the subsidiary’s main customer, reduced its on-site personnel by 30%. The contract with TOTAL finally got under way in April 2016 and served at year’s end to mitigate the

effect of the subsidiary’s decrease in turnover. The YPFB Andina and Minera Manquiri contracts were renewed. There are good opportunities for growth in the Remote site sector with current and prospective customers such as Petrex, San Vicente, Petrobras, YPFB Corporación, YPFB Chaco, and San Antonio in 2016/17. Unfortunately, the Inflight business showed no growth during the 2015/16 period. The ISO 9001, ISO 18000, ISO 14000, ISO 22000 (Inflight) and ISO 22000 (Remote site) certifications were renewed in 2015/16. In the coming year, Newrest in Bolivia should be able to add ITACAMBA to its B&I customer portfolio (200 lunches, dinners and breakfasts), a new cement plant located in Puerto Suarez, on the Brazilian border. This new contract will enable us to open a logistics line to the western part of the country and explore new paths for growth.

Bolivia / Chile

CHILE 1

Production unit

COUNTRY MANAGER

Oriane MARRAUD DES GROTTES

Clients

Site of operation

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L AT I N A M E R I C A & O C E A N I A D I V I S I O N

marketing efforts were centred on the Antofagasta area. Newrest in Chile was thus awarded the AES Gener contract in Mejillones, raising the number of contracts implemented in Chile for this customer to four. Operations also started at Kauffman-Mercedes, with the particular feature of being a site serviced by cold deliveries. In the Inflight sector, customer maintenance and increased marketing were also the main basis for growth in the year. Newrest in Chile renewed its services contract for the LATAM VIP Lounge at the Arturo Merino Benitez airport in Santiago, and was awarded the catering contract for British Airways, which will open a Heathrow-Santiago route in January 2017. The subsidiary was also able to increase its business in FBO and Charters.

▲ + 26.2 %

Managed turnover increase in Chile

In Chile, the 2015/16 period resulted in complete management reorganisation focusing on maintaining customers and increased marketing. In the Catering sector, the Chilean subsidiary was thus able to keep 95% of its customers. Increased

The subsidiary’s growth has also occurred through recognition of its service in terms of both quality and safety. During the financial year, the Inflight and Catering businesses, along with the headquarters, obtained ISO 9001 certification. The subsidiary was also recognised for its involvement and good practices in terms of safety, and was named the ‘Best subcontractor’ for safety at the ENGIE thermoelectric plant sites. In line with its goal of continuous improvement and a concern for standardising those good practices at the national level, this subsidiary will seek to obtain OSHAS 18000 certification. The year’s operating results in Chile allow Newrest to look forward to 2017 with renewed enthusiasm but it will need to optimise costs in order to promote its growth. Lunch service at Mejillones’ petrol extraction camp – Chile ◀

100

Loading for British Airways – San José airport (SJO), Costa Rica ▶

CO L O M B I A

COUNTRY MANAGER

Julian ATEHORTUA

Production unit

CO STA R I C A 2

Production units

COUNTRY MANAGER

Pierre MARTENS

Clients

Points of sale

▲ + 189.4 %

Managed turnover increase in Costa Rica

Newrest Group has achieved the construction of its inflight catering unit – an area of 2,092m 2 in Bogota, Colombia. Located in the ‘Bogota Free Trade Zone’, a highly secured area, Newrest in Colombia will be the only caterer offering a mixed space (dry and refrigerated) of 153m2 based 6 km far from the airport. The objective is to reduce distance with its clients and to offer an ever faster service. On a commercial point of view, the country has already responded to numerous tenders during all Colombian winter. The Air Europa’s contract will begin on February 1st, 2017.

Newrest’s main line of business in Costa Rica is Inflight catering, with two units located in San José and Liberia. The Inflight business has grown substantially with the arrival of four new airline companies: British Airways, Alaska Airlines, Thomson and Air France. At the San José plant, located near the San José International Airport, production amounts to an average of 6,500 meals per day. The unit was entirely redone in order to meet Newrest Group standards and comply with the latest quality regulations. At the Liberia unit, located in the north-western part of the country,

200 kilometres from San José, in the area set aside for the airport, production amounts to 600 meals per day. A new unit will be built in the first quarter of 2017. In the airport retail sector, Newrest has three points of sale inside the San José airport: a ‘La Tienda de Malinche’ shop and a ‘Deli’Malinche’ cafeteria in the public arrival areas, and a ‘Malinche Restaurant’ in the restricted, duty free departures zones.

C o l o m b i a / C o s t a R i c a / F r e n c h Po l y n e s i a

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F R E N C H P O LY N E S I A COUNTRY MANAGER

Arnaud PRADEL

Production unit

Clients

Point of sale

▼ -2.6 %

Managed turnover decrease in French Polynesia

In the Catering sector, Newrest has supplied 1,200 meals daily to patients at the Alajuela & San José public hospital since September 2016, and has provided services that meet the sector’s nutritional and medical standards and requirements. The subsidiary has also started to obtain market share in the B&I sector with two new contracts. The first is with the French-Costa Rican high school in San José, obtained in February 2016: Newrest supplies some one hundred meals daily to the students and has a point of sale inside the institution. A €30,000 investment went into modernising the kitchen and making the dining room more attractive. The second contract is with the Fujitsu call centre, located in the Herdia & San José duty free zone, with an average of 300 meals daily. The sum of €25,000 was also invested in new equipment and renovating the premises. In the areas of Quality and Health, the business activities are ISO 9001:2008 and ISO 14001 certified, and ISO 22000 certification is expected in the coming year. Many customer audits were done, with very satisfactory results for the Costa Rican subsidiary. Newrest’s goal for 2016/17 is to substantial increase the Group’s presence in the Catering sector.

In French Polynesia, under economic conditions that are still problematic, the Newrest Group was able to implement effective action plans that enabled it to generate consistent results which ensured renewed competitiveness essential to its future. Under conditions of low growth and with few development opportunities, the turnover of the French Polynesia subsidiary remained relatively stable over the period at 35 million euros. New competitive factors appeared, mainly in the public sector, but Newrest and Air Tahiti teams in front of french presidential plane – Papeete airport (PPT), French Polynesia ◀

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Lastly, this year will be the 10th anniversary of Newrest’s presence in French Polynesia, an opportunity to thank all of its customers, partners and employees for the substantial progress already made, and to look forward to celebrating its 20th anniversary!

M E X I CO 1

Production unit

COUNTRY MANAGER

Felicia GASPAR

1,100 Meals served per day

Clients

Filling of a trolley with trays, inflight unit of Cancun – Mexico ▶

Newrest Polynesia’s main contracts were renewed and new opportunities were found for its distribution and service activities. This subsidiary’s major gain was based on its clear improvement in productivity, due to precise implementation of the action plans and restructuring efforts planned for the period. Its operating result is now up to standard for its line of business. The Polynesian subsidiary can thus focus entirely on its mid and long-term structural challenges in order to meet international standards, quality requirements and current market operational performance, to produce service consistent with local economic and labour conditions, and to help prevent childhood obesity. In terms of marketing, Newrest will continue its overtures to government bodies and institutions, specifically in view of possible public outsourcing, in order to offer its experience to independently managed school cafeterias. This subsidiary also hopes to benefit from local opportunities for growth in terms of tourism with the potential arrival of new lines from China and Canada, as well as the implementation of major projects for guest accommodations and the structuring of aquaculture markets. The Newrest Group can therefore undertake the investments and projects that will determine the sustainability of its business plan in Polynesia.

▼ - 21.5 %

Managed turnover decrease in Mexico

In terms of results for the 2015/16 period, Newrest’s total sales in Mexico decrease compared to the results for 2014/15. In this country, Newrest’s main line of business continues to be Inflight catering, a sector that is promising for the future. The Cancun and Rivera Maya regions have experienced high growth in tourism, due to the recent events in the Middle-East. Currently, Mexico’s Caribbean region is one of the primary tourist destinations in the world, with 100,000 guest rooms. Traffic at the Cancun international airport amounted to 19 million passengers in 2015 and will reach an estimated 21 million at year’s end in 2016, meaning an

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NEW CALEDONIA COUNTRY MANAGER

Aurélie GUEGUEN

Clients

increase of 1 million yearly since 2010. Starting in July 2017, this airport will have a new, totally computerised terminal, Terminal 4. Because of this situation, airlines have increased the frequency of their flights and inaugurated new routes. For the future, they are seeking competitive offers and issuing calls for tenders that represent opportunities for growth of Newrest’s business activity. When the Russian airline Transaero left its customer portfolio, Newrest in Mexico bid on various calls for tenders, including Condor & Thomas Cook, Avianca, United and Air France. The new customers are the Russian company Nordwind Airlines, which will start operations on November 1st, 2016, and a new U.S. company, Air Dynamic, and decisions by other customers are pending. Newrest also began providing services to VIP flights related to FBO at the Cancun airport. Newrest has been ISO 9001:2008 certified in Mexico since 2014, having undergone follow-up reviews and obtained good results, and will undergo re-certification in 2018. Newrest customer WAMOS AIR audits the subsidiary annually and our result for this year was 93% out of 100%. In order to increase its presence in the country and be able to grow in other areas, the Mexican subsidiary has submitted an application at the Mexico City airport for the future.

Production unit

Site of operation

The 2015/16 period was marked by Newrest’s first operations in New Caledonia with the Goro Nickel contract in the Grand Sud area of this island, and its partnership with the Jacrégal company, which specialises in Catering. Launching such a large project in a country with no previous operations was an intense experience for the entire staff of New Caledonia. However, after being in operation for one year, the subsidiary has been launched and is attentive to every possible opportunity to continue its growth in the other sectors of the Group. Lunch service at the ‘Grand-Sud’ factory for Vale – New Caledonia ◀

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Newrest Jacrégal team during the launching of Nouméa’s Medipole restaurant – New Caledonia ▶

Even as initial implementation of the Vale contract has proved to be operationally problematic, the economic conditions and the price of nickel have negatively affected Newrest’s financial predictions.

Newrest/Jacrégal has a marginal presence in New Caledonia in the Inflight catering sector, and produces 300 meals daily for the airline companies (Aircalin and Qantas, via the Engie Pacific Airport).

After obtaining the Goro Nickel contract in the Grand Sud area of the island with Vale, a customer that Newrest is already familiar with from other countries in its network, the Newrest Group was thus able to kick off its business activities in New Caledonia. The Goro Nickel contract is for full services. Newrest is thus intervening in Remote site and off-site structures of the plant, representing 750,000 meals and some 250,000 overnight stays per year. Newrest is making every effort to provide its customer with a complete solution, not only by providing catering and hotel services, but also by managing maintenance, pest control, laundry facilities and waste management, always with the maximum possible cost-efficiency.

The Vale contract and strategic partnership with Jacrégal have enabled the Newrest Group to consolidate its presence in French overseas territories and Oceania, and to foresee an opening for all of its sectors.

PERU 8

Clients

COUNTRY MANAGER

Olivier BILLEREY

Sites of operation

42 Clients

In order to gain a better grasp of the specific features of this area and fit in better in the region, a substantial portion of the ownership of the company is shared with our local partner, Jacrégal, and the local community. Furthermore, pursuing its plan to expand sectors, Newrest has also partnered with the traditional catering company in the region, Jacrégal. This company operates in the catering sector with somewhat more than 1,000 meals served daily, and has just landed a major contract in the sector to manage food services for the employee cafeteria at the new hospital complex in Nouméa that will begin operation in November 2016. In addition to managing the restaurant, Newrest provided the design for it and for the kitchen, along with their construction.

▼ - 0.2 %

Managed turnover decrease in Peru

Point of sale

For the year 2015/16, Newrest turnover decreased by 0,2% in Peru, consequent of unfavourable economic conditions due to raw materials prices that affected the Remote site sector, and to the general wait-and-see attitude that has characterised Peru during this electoral year. In economic terms, the period was marked by a major increase of more than 13% in Peru’s minimum wage, which we were able to partially pass on to our customers. Growth in the Inflight catering business was boosted by obtaining the StarPerú, British Airways and Plus Ultra contracts. The airport retail sales market continues to do well due to the healthy performance of Starbucks stores and the start-up of business with Juan Valdez, which have also contributed to an increase in the subsidiary’s turnover while maintaining good prospects for growth. However, the bus contract with Cruz del Sur has not yet met the initially expected goals and remains an area to be optimised. Under very problematic conditions, Newrest Peru stepped up its market share in the Remote site sector. Under pressure from its customers but with negotiated terms, Newrest was able to renew its main contracts and thus ensure a solid line of business for the coming years. The volumes of the Hudbay contract decreased noticeably given the end of

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the construction phase of the mine and its placement in operation. At the same time, the subsidiary obtained some marketing success with Petrex and ENGIE that allowed it to diversify its line of business (petroleum and hydroelectric sectors) and obtain better distribution for its geographical presence. The conditions are more promising for Catering, a sector where Newrest is still the leader in Peru. The subsidiary was able to maintain its customers and show major growth with many new opportunities such as Banco de la Nación, Protisa, several TASA sites, the new Lindley headquarters, and two restaurants for San Martin and Atento. It also won the Backus national call for tenders for 18 restaurants. Regarding the airport Retail sector, ‘Caffe Lindo’ benefited from the increased passenger traffic at the Lima airport. However, the point of sale in Cusco, which was a long way from meeting customer usage goals, had to be closed. Lastly, a cafeteria, ‘Daily Break’, was opened at the bus station of Newrest customer Cruz del Sur. Newrest Inflight also obtained ISO 9001 certification this year and its BASC (safety) and YUM (Starbucks) certifications were renewed. The overall Newrest staffing in Peru is now close to 1,700 employees and the management staff has been stable and effective for 2 years. Newrest’s perspectives for the coming year are encouraging, both in terms of opportunities for growth and the potential for optimisation of management. Continuing with the work started 2 years ago and reinforcing the use of Group programs should enable continued growth and increased profitability.

Atento call centre restaurant – Lima, Peru ◀

G R O UP CO MMI T MEN TS

04 Meals Development â&#x20AC;&#x2019; Catering for CPAM Versaille, France â&#x2014;&#x20AC;

Newrest is committed to its employees, customers and suppliers, with a focus on essential points: tasty, well-balanced meals; high-quality, hygienic products and services; respect for human rights and working conditions; respect for the environment and the fight against corruption.

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N E W R E S T ’ S CO M M I T M E N TS

TO I TS C L IEN TS A N D CO NS U M ER S Meal produced for VIP service – Inflight catering ▶

7,594 VIP meals

served per day

1,037

chefs employed by the Group

new ISO 9001 or ISO 22000 certifications in 2015

In all our kitchens and restaurants, our employees ensure that consumers are served balanced, varied, tasty meals, while following hygiene standards to the letter.

A PA SSION FOR TA S TE At Newrest, we believe that a meal is more than just nutrition: it is an experience for the taste buds and an enjoyable moment of well-being. G ROUP ∙ TA STE COMMIT TEE (1) Across all business sectors, Newrest has set up a committee responsible for tasting the dishes offered to consumers before they are served. This tasting process enables us to evaluate the organoleptic characteristics of our food and to tailor them to customer needs. The frequency of tasting varies according to business sector. At our Remote sites, each meal is tasted beforehand by a Chef and by the Newrest team before being served to employees.

FR A NCE ∙ NE WREST WAGONS - LITS (2) Since September 1st 2016, Newrest Wagons-Lits in France has made ‘Bistro de Chef by Michel Sarran’ products available for its client SNCF. The brand was created for the Newrest Group, specifically for TGV. Michel Sarran — French Chef, owner of a Michelin-starred restaurant and jury member on reality cooking show “Top Chef” in France — signed an exclusive contract with Newrest Wagons-Lits. A choice of sandwiches, salads, hot dishes and desserts will be available for passengers to enjoy in the TGV bar along

the entire French rail network: wheat salad with vegetables and feta, penne with squash, mushrooms and green aspergus - amongst others - in addition to the favorite dessert of Michel Sarran: Berthe’s apple and honey inspired by his grand mother. “I want to create tasty food that tickles the palate. If I can stir up emotions through my cooking, then I have achieved my goal in sharing a pleasurable experience”, the chef claims.

ALGERIA ∙ ‘L A SEMAINE DU GOÛT’(3) As part of la ‘Semaine du Goût’ (literally Taste Week), children from the ‘École d’Hydra’ (PEH) in Algiers took part in Taste Workshops organized by the Newrest Algeria team. All day long, over 100 pupils learned to recognize the four basic tastes and the five senses. A taste test was organized and everyone passed. Mission accomplished!

SPAIN ∙ GOURMET ME ALS AND VIP SERVICES (4) Newrest offers gourmet meals daily for VIP services, events, and for first-class and business class airline passengers. Newrest in Spain and the VIP services for Emirates Airlines welcomed journalists and clients in the

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110

exclusive VIP lounge at the Santiago Bernabéu stadium (home of Real Madrid FC) to enjoy culinary delicacies usually reserved for first class passengers. Guests were also able to enjoy one of the best Champagne vintages, such as the 2005 Dom Perignon and the 2003 Dom Perignon Rosé, both of which are served on Emirates flights. Newrest representative, Nicola Monaco, highlighted the considerable challenge met by the cooks who prepare sumptuous meals at 35,000 feet in altitude. VIP lounge at the Santiago Bernabéu ‒ Madrid ▶

HE ALTH Y NUTRITION Newrest develops programs everywhere in partnership with its clients to promote healthy eating. We have set up a nutrition campaign at our Catering and Remote sites, entitled ‘Marcel & Linda’ for adults and ‘Madeleine’ for children. A poster campaign is being run to build awareness among staff about healthy eating, the importance of physical activity and of preventing cardiovascular problems etc. Along with this information, consumers often receive a nutritional assessment.

19,000

children trained in 2015/16 in the school catering sector

nutrition campaigns in 2015/16

dish is displayed, enabling every customer to put together a menu that is best suited to their nutritional needs. At some sites, a nutritionist is regularly present to offer personalized advice to those who wish, including sports and recommendations for a better lifestyle.

FRENCH P OLY NE SI A ∙ LE A RNING A B OUT NUTRITION (5) For nursery school week, the Taharuu school in Papara organized health-themed events. Newrest dieticians visited the school to host a food and taste workshop. At the Taharuu school in Papara, nursery school children learn to recognize different foods with the help of a dietician. Photos are shown to the children, who are then asked to categorize it as an animal or plant species: “Is an apple an animal?” asks Vaina Tsong who works for Newrest. The company actively caters to schools and junior high schools in Papara. “No,” the children answer in chorus. “The children often recognize cooked chicken presented on a plate, but they don’t really know what it looks like. They also don’t know that apples have seeds,” she explains. This workshop is part of ‘Nursery School Week’, which is currently underway in the region. Every day, Newrest delivers 1,500 meals to elementary and junior high schools in Papara. According to Bernard Mauze, President of the company’s board of directors, find fresh local produce in large quantities is sometimes difficult. “But we often use vegetables grown in Papara and fresh catches of fish,” he specified.

100 %

of our meals created by nutritionnists for Newrest Restauration

G ROUP ∙ HELPING OUR CLIENTS TO LI V E HE ALTH Y LI V ES Newrest offers a special-nutrition menu option — no animal fats or red meat — at the majority of its restaurants or Remote sites. The calorie count for each

SULTA N ATE OF OM A N ∙ THE NE W ‘HE A LTH Y LI V ING’ (6) The new ‘Healthy Living’ campaign operates in the 105 sites managed by Newrest Wacasco and is designed for the 1,600 employees who serve almost

5,000 meals every day. Five key areas are concerned by this campaign: choosing a sport, adopting a healthy diet, being more active, adopting better eating habits and taking care of the heart. These themes are introduced by way of activities and challenges, with rewards offered as a bonus. This year, discussion will be aimed towards building awareness about topics such as balanced diet, body hydration, the need to exercise and the reduction in oil and salt intake.

high-impact projects for the daily well-being and health of children, act against hunger and promote better education.

For the last year, over 2,000 team members have participated in sporting activities, and 673 medical visits have taken place at 105 sites where Newrest Wacasco is present.

OP TIM A L QUA LIT Y A ND H YGIENE CONDITIONS Newrest Group applies very strict Health and Quality standards required by the Catering sector. MOROCCO∙ BUILDING AWARENES S AB OUT HE ALTH A ND NUTRITION Newrest in Morocco runs awareness campaigns about nutrition and health for its clients. Every year, Newrest also organizes preventive health events during anti-smoking days or during the World Diabetes Day.

M A DAG A SC A R ∙ THE IMPORTANCE OF A VARIED DIE T ( 7 ) For almost two years now, in partnership with Aéropartage and B’SaN Asso, Newrest in Madagascar has been supporting a food diversification project offered to 294 children in the village of Tanjondroa, located at approximately 25 km from the capital. This program, which seeks to promote protein and calcium-filled nutrition, is supported by a monthly donation of food products supplied by the subsidiary. The main objective of the program is always the same: use existing resources to develop

Newrest has developed a Quality Management system that includes very strict processes, taking into account all the stages involved in meal preparation. Our Quality Management system is an integrated one that enables the Group to acquire new certification when requested by clients in specific business markets.

83 %

of our turnover certified ISO 9001

55 %

of our turnover ISO 22000 certified

+ 16 %

of certifications between 2015 and 2016

G ROUP∙ 2016 QHSE SEMINA R The QHSE department’s annual seminar was held in Toulouse from 8 to 10 March. Quality, Health, food Safety and Environmental respect are key themes for the Group. This annual seminar enables Quality managers from different countries to pool their work and ideas in order to maintain continuous improvement.

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NE WREST’S COMMITMENTS

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CUSTOMER SATISFAC TION Newrest has implemented various means of identifying its customer satisfaction index. For Inflight catering, Newrest Group created a shared database for all airlines where any reported incident could be listed. However, when Newrest is in direct contact with customers, as is the case at our Remote sites, personalized satisfaction surveys help identify any areas for improvement.

80 %

of client audits scored over 90%

70 %

of renewed contracts in countries in 2015/16

TUNISI A ∙ CUSTOMER S ATISFAC TION FOLLOW- UP Until recently, Newrest in Tunisia conducted satisfaction surveys every two years with its clients. Since 2015, these have become quarterly surveys. This facilitates a better understanding of client needs and creates an opportunity for more recommendations, suggestions and feedback, in order to improve the services provided.

G H A N A ∙ RECOMMENDATIONS A ND ACKNOWLEDGEMENTS (8) Newrest in Ghana received an official letter of recommendation from the Embassies of France and Israel, as well as from SWISSPORT. The company also received thank you emails from CFAO Ghana after organizing events for them.

QATA R ∙ ROLL OUT OF THE ‘HA PP Y OR NOT’ SUR V E Y The Newrest Gulf joint venture has implemented a ‘Happy or Not’ system at many of their sites. The system uses a computer terminal that allows consumers to rate their satisfaction level in terms of meal quality. Any customer can add their input and this provides the company with daily reports about the quality of services provided.

OPER ATIONAL OPTIMISATION A N D CO M P U T E R TO O L S To optimize its operations and increase responsiveness, Newrest uses specific computer software tools that improve daily work management. These tools are called ‘Winflight’ and ‘Winrest’. To optimize its operations and increase responsiveness, Newrest uses specific computer software tools that improve daily work management. These tools are called ‘Winflight’ and ‘Winrest’.

2,694

training hours on ‘Winflight’ and ‘Winrest’ in 2015/16

75 %

of countries use ‘Winflight’ and ‘Winrest’

∙ W inf light With this software, users can create menus for each airline company, print the corresponding recipe sheets, update needs according to seat occupancy on flights, manage stocks and the cost of foodstuff and offer menus tailored to each passenger’s dietary preferences (gluten-free, vegetarian, etc.).

∙ W inre s t Formerly known as ‘Unirest’, this software was designed for the Catering and Remote site businesses

and enables teams to create detailed menus according to each client’s specific needs, create recipe sheets with the details of all required foods and to determine the nutritional impact of every dish. Since its implementation in 2012, teams have been able to optimize food stocks considerably. ‘Winrest’ is used in 60% of the countries where we have Catering and/or Remote site activities and should be rolled out in 80% of countries by the end of the year. Newrest also develops specific IT tools while remaining in tune with the needs of its clients

G ROUP ∙ A M AN AGEMENT SOF TWA RE PACK AGE DEPLOY ED In order to manage and optimise Facilit’rail subsidiary logistic, the Group has set up Winlog a WMS (Warehouse management system). It is a software package for managing and optimizing warehousing as well as physical and computer streams. This tool helps standardize operational procedures in real time, maintain perfect traceability for stock and control stock levels.

FR A NCE ∙ NE WREST WAGONS - LITS TESTS THE CLICK & COLLEC T SER V ICE FOR TG V (9) The application is currently being experimented. Passengers will be able to order meals without leaving their seats using their smartphone and can also enjoy a priority line at the bar car. Passengers on some trains can even have meals delivered to their seats. Newrest’s click & collect app has already been tested in Madagascar and is currently being rolled-out in other countries where the Group conducts business: France, Costa Rica, Peru, Bolivia, Uganda, Gabon and Angola, among others.

TO ITS CLIENTS AND CONSUMERS

A LONG -TERM VISION Newrest’s strategic choices are based on a global vision that includes taking calculated risks and promoting sustainable opportunities and long-term investments. This year, Newrest celebrated its 10th anniversary and the company continues to promote a long-term vision of its activities on a managerial level. Newrest is constantly seeking to ensure transparency and fairness.

GREECE ∙ NE WREST CELEBR ATES 10 T H A NNI V ERS A RY (1 0) To mark its 10th year anniversary, Newrest in Greece organized an event on Monday 23 May. A lively, friendly atmosphere reigned at the ‘Residence de France’, where there was a concert and a dinner reception. Everything went smoothly and the setting was perfect for the event. All the guests seemed happy to be there. During the concert, Greek singer Irini Karaianni took to the stage, accompanied by Dimitris Yakas.

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N E W R E S T ’ S CO M M I T M E N TS

TO I TS EM PLOY EE S Employees preparing meals in the production unit ‒ Newrest Morocco ▶

20,354

employees trained in 2015/16

34 %

of employees are from 25 to 34 years of age

494

youth hired on apprenticeship programs in 2015/16

In order to offer top-quality service to its clients, Newrest has been highly vigilant in terms of human resources. The cornerstones of the Group’s strategy are optimal staff management and the development of every employee’s talent. Considering the respect for working conditions as a basic principle, the Group is committed to motivating its teams and promoting continuous training for staff.

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EQUAL OPPORTUNIT Y & ANTI-DISCRIMINATION AND RECRUITMENT POLICIES Newrest is committed to respecting and treating each of its employees equally. Its recruitment policy focuses on the experience and enthusiasm of candidates, giving each one an equal chance. COSTA RIC A ∙ RECRUITMENT AND SOCIAL ACTION Newrest in Costa Rica works in partnership with an action centre to recruit persons in difficulty: students or young people from socially fragile families (drug-addict or alcoholic parents, for example) in order to help them reintegrate themselves into society.

GROUP ∙ AVIATION CAREERS FORUM Newrest was present at this forum which focused on professions in the aviation sector and was held in Réunion island. The objective was to inform secondary school students about the various careers possible in air transport and aeronautics, give them advice about training and stir up interest in the field.

MOROCCO ∙ HIRING AGREEMENT SIGNED (1) Conscious of how essential it is to use young talent to inject growth into the Group and guarantee its future success, Newrest has made an ambitious graduate program available since 2014. We would therefore like to present to you the first graduating class of 2014/2015 from the ‘Newrest Academy’ and also take this opportunity to congratulate them on their definitive inclusion into the Group.

The graduates have shown their involvement and desire to share the values that have been and continue to be the foundation of Newrest’s success. We wish them great success in their future endeavours and a long, fulfilling career with the Group.

MADAGASC AR ∙ HIRING AGREEMENT SIGNED On August 4th, 2016 Alexandre Lelièvre, Managing Director of Newrest in Madagascar, and Noromanana Rabenitany, Director of the National Tourism and Hospitality Institute (INTH), signed an agreement to strengthen relations between these two organisations. This agreement aims to improve employment opportunities for INTH students. Based on staffing needs, Newrest will offer these students the chance to begin their careers within the Group. Since 2006, Newrest has opened up wonderful career opportunities to the young talented Malagasy students, in the fields of Catering and Remote site management. The Tourism Minister, Roland Ratsiraka, supported the partnership between the INTH and Newrest. He was present during the signing of the agreement.

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R E S P EC T F O R W O R K I N G CO N D I TIONS AND WORK SAFET Y The Group is mindful of respecting labour law to the letter and offers its employees a comfortable, healthy, safe working environment.

- 20 %

of occupational accidents between 2014 and 2016

- 34 %

of accident frequency rate per month in 2015/16

UG A NDA ∙ RESPEC T FOR SOCIAL REGUL ATIONS (2) On October 12th, 2016 Newrest in Uganda won the title of ‘Best employer in Entebbe’.This award was given to Newrest in Uganda by the ‘Sécurité Sociale Ougandaise’ (literally National Social Security Fund). It acknowledges companies that respect social regulations in the Entebbe district.

A NGOL A ∙ INTERN ATION A L WORK S AFE T Y DAY Newrest in Angola was thrilled to celebrate an entire accident-free year on April 28th, 2016. This date coincided with the international work safety day. To mark the event, the subsidiary organised an exhibition at the HSE forum hosted by its client Total EP Angola.

W E L L- B E I N G O F E M PLOY E E S Newrest pays close attention to the health and well-being of its employees. The Group has done everything within its power to provide the best possible access to health care, especially in the developing countries where it operates. GH A N A ∙ IN - HOUSE MEDIC A L SER V ICES Newrest in Ghana provides health coverage for its employees, creating a special space for medical consultations to take place. An on-site doctor does preventive work, covering risks of disease transmission, dietary habits, and healthy lifestyle. This action enables employees to have better access to health care and to medical information.

SULTA N AT OF OM A N∙ BRE A ST C A NCER SCREENING INITIATI V ES CONTINUE For the second consecutive year, Newrest Wacasco in Oman and the Burjeel Medical Centre provided a program for free breast exams. Screening currently plays an important role in the health and well-being of women. This is why Newrest Wacasco and the Burjeel Medical Centre are always on the lookout for new opportunities to take part in humanitarian initiatives for the good of society and to help build awareness about all aspects of health.

SPAIN ∙ EMPLOYEE SATISFACTION SUR V E Y Every four years, Newrest in Spain conducts a psychosocial survey with its employees. It helps better identify various work-related problems and also improves professional life. The company can then carry out new measures: discounts for highly-invested employees, implementation of additional training or organisation of a company Christmas party.

THE NE THERL A NDS ∙ SUMMER B ARBECUE (3) To celebrate the summer, Newrest in the Netherlands organised its first summer barbecue on July 14th, 2014. Employees, clients and suppliers were invited to enjoy a lively, friendly gathering with delicious food. A swimming pool was built to make the event even more enjoyable, and everyone was able to relax and soak in the summer sun while listening to music from a DJ truck. Guests had a very good time and the organisers are already looking forward to hosting a second edition next year.

TO ITS EMPLOYEES

place to offer them customized training, regardless of hierarchical position. These training opportunities concern general subjects (languages, IT, team management, etc.); subjects specific to food preparation (food safety, HACCP, kitchen production, food allergens, traceability, etc.); subjects specific to aviation professions (aviation safety, aircraft door safety procedures, aviation approach to airline handling, etc.), subjects specific to Remote sites. These training sessions are provided either outside or inside of the company by our QHSE managers, site managers or training managers.

GROUP ∙ TO OLB OX MEE TINGS ‘Tool box’ meetings got their names from construction sites’ discussions which occured at the beginning of the day. Workers were, in the olden times, settled down on their tool boxes to talk about their day’s program. The term “toolbox meeting” is now used to refer to almost daily meetings dealing with a wide range of topics related to quality, safety or well-being on the job. These are short but intense opportunities for information and discussion that can prove to be very educational.

A N G O L A ∙ ACCES S TO T R A ININ G FOR A LL EMPLOY EES Newrest in Angola trained all of its employees, an effort that amounted to a total of 3,800 hours of training. These sessions concerned level 1 (basic) food safety, level 2 (intermediate) food safety, assisted HSE training, risk assessment, etc. The subsidiary also organises toolbox meetings every day.

EM PLOY E E T R A I N I N G In a constantly moving, changing market, expertise must also evolve. Newrest is very mindful of its employees’ professionalism and puts everything in

TUNISIA ∙ TR AINING FOR ALL T YPES OF EMPLOYEES Newrest in Tunisia used 90% of its training budget to train as many employees as possible, with both permanent or temporary status. The 88 training sessions focused on first aid, HACCP, waste management, firefighting procedures and food handling.

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In 2015/16

69%

of our employees received training sessions

More than

20,000

toolbox training sessions for more than 5,000 employees

CROATI A ∙ SPECIFIC TR A INING FOR V IP SER V ICES Newrest in Croatia trained 40% of its employees, especially chefs, team members and managers involved in VIP services.These training sessions accounted for 450 hours for the year 2015/16. They enable employees to meet the needs of VIP clients while maintaining the highest standards of excellence.

SPORTS-BASED M OT I VAT I O N The entire Group participated in various sporting events over the 2015/16 period. G ROUP ∙ CONTINUED PA RTNERSHIP WITH FABRICE AMEDEO (4) The Group renewed its partnership this year with the skipper Fabrice Amedeo, who has been displaying the ‘Newrest-Matmut’ flag proudly on his IMOCA boat. Amedeo set off on his first ever ‘Vendée Globe’ in November. The race is a source of excitement and emotion for a large number of employees who follow it closely. In fact, Newrest’s slogan for the race is “A skipper at sea, a crew of 28,000 on share.”

GABON ∙ JUNIOR NEWREST CUP (5) Newrest in Gabon organized a golf tournament for children that took place in February 2016. The ‘Junior Newrest Cup’ kicked off the competition season at the Golf School in Port-Gentil. The tropical heat was no obstacle for the young Gabonese champions, who proved they had a taste for competition.

TO ITS EMPLOYEES

THE NE THERL A NDS ∙ TE AMS FOR INTER- COMPAN Y TOURNAMENTS (6) Newrest and Airshop employees in the Netherlands formed a bowling team and two volleyball teams. The bowling team meets once a month and is training for the Business League. In October, Newrest in the Netherlands took part in the ‘bedrijventoernooi’ an inter-company volleyball tournament. Three teams from Newrest in the Netherlands participated in this tournament that included 16 companies. The Newrest Centrum team was the overall tournament winner.

NE W RE S T HE A D QUA R TERS ∙ PA RTICIPATION IN THE ‘CORRIDA PÉDESTRE’ (8) Newrest teams laced up their running shoes for the ‘Corrida pédestre’, a 10 km night race through the heart of Toulouse that took place on July 1 st, 2016. Eleven runners from the Toulouse headquarters and Blagnac teams set off on the Company challenge and proudly wore the Newrest colours for the race that gathered over 4,700 people

SPAIN ∙ PARTICIPATION IN THE ‘POWER ADE MTB NON STOP SERIES’ 2016 (7) The non-stop, team relay mountain bike race from Madrid to Lisbon took place from Friday September 30 th to Sunday October 2nd, 2016. After covering 200 km per week for 3 months to train for the big event, 4 cyclists from the Newrest Servair team in Madrid alternated every 80 km to get to Lisbon from Madrid. They decided to adapt the race to greet their Newrest Servair colleagues at the start and their Newrest Lisbon colleagues after passing the finish line. The cyclists did not sleep for two days in order to cover the 770 km separating the Spanish and Portuguese capitals. They clocked a time of 45:48:11 and finished 103rd out of 274 teams.

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N E W R E S T ’ S CO M M I T M E N TS

TO I TS PA R T N ER S

Meeting for supplier choice ‒ Headquarter Newrest Morocco ▶

PHOTOS ?

Regardless of the country involved, Newrest collaborators must maintain business relations rooted in transparency and honesty. This requirement holds especially true for our suppliers, since unfair competition is also frowned upon.

A N T I - CO R R U P T I O N POLICY The Group strictly prohibits its employees from offering gifts or money to representatives of its clients or to officials, with the aim of facilitating the signature of contracts. Similarly, it is prohibited to accept any gift from suppliers or accredited collaborators (or collaborators in the process of obtaining accreditation) offered with the aim of acquiring a market or a discount. Furthermore, it is prohibited to pressure health inspection staff in any way or offer gifts to encourage inspectors

to overlook any breaches of hygiene rules. All of these principles are valid in all the countries where we operate, regardless of whether corruption is a common local practice. Newrest has implemented checking procedures for persons susceptible to be drawn into corrupt practices: sales managers and sales directors. These persons are monitored by national directors, zone directors and internal auditors. The latter check the figures from each country every month, and verify procedures during regular on-site visits. An anti-corruption charter has been drafted and translated into several languages.

ME XICO ∙ TR A NSPA RENT A NTI - CORRUPTION OPER ATIONS With corruption still rampant in Mexico, Newrest in Cancun has stepped up its vigilance. The operations conducted by the subsidiary are transparent and the Group has been able to confirm once more that

no staff member has participated in unfair business practices initiated by suppliers.

S W ITZERL A ND ∙ NO GIF TS , NO PRI V ILEGES No gift can be accepted from any supplier or collaborator. Dinner invitations, concert tickets or invitations to other events are systematically refused.

FA I R CO M PE T I T I O N During calls to tender involving Newrest, unfair practices are forbidden. Contracts can only be won as part of normal competition between the different tender participants. Social dumping and pricing practices non-compliant with market regulations are not tolerated. Prices are studied independently. No agreements whatsoever are made with competing parties. The offers proposed for all contracts are evaluated collectively by country directors, zone directors and sales directors in relation to their sphere of business

CHOICE OF SUPPLIERS Suppliers are selected via external audits. To obtain accreditation suppliers absolutely must respect certain rules. Product quality, stock management, freshness, transport system, and cold-chain management are the only criteria that determine our choice. Supplier audit procedures and questionnaires have been created and are used in all countries of operation. For all tenders, each country must obtain a price from at least 3 different suppliers and this process must be conducted at least every year for all product groups purchased. Evidently, a contract is always drawn up locally to guarantee a legal connection between Newrest units and suppliers.

PERU ∙ CENTR A LIS ATION OF PURCH A SES All purchases are centralised via a special department located in Lima. Calls to tender are completed from this office. This system enables Newrest to apply a single methodology when selecting its potential suppliers. It also enables better control during the purchasing process.

SPA IN ∙ RIGOROUS SELEC TION PROCES S When Newrest in Spain launches a call to tender, a meticulous task of comparison is involved. The requirement of at least three different suppliers is respected. Product samples are then blind-tested, and quality, price and compliance with ISO standards are also verified before closing off negotiations.

PHILIPPINE S ∙ INTEGRIT Y CH A RTER Our suppliers are selected based on a strict process, and must provide the relevant documents concerning their company and products. Representatives from Newrest SOS conduct on-site visits to suppliers if necessary. The Newrest SOS joint venture signed an integrity charter against corruption. This charter is renewed every year. Our success with the ‘TRACE’ certification is proof of our commitment to transparent business practices which bear testimony to the fact that we are a trustworthy business partner.

MOROCCO ∙ HOLDING SUPPLIERS TO HIGH STA NDA RDS As part of its supplier selection process, Newrest in Morocco checks the references of every one of its potential collaborators. Suppliers must provide proof of financial security and show their efficiency and quality of work. Suppliers are also requested to provide a certain number of documents to show that they have complied with the required amount of public contributions. Newrest in Morocco checks the tax certificates and social security contribution certificates for each supplier.

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TO I TS S O C I A L EN V IR O N M EN T Celebration with people from communities around San Cristobal – Bolivia ▶

4,800

individuals have benefited from Newrest charity (direct actions or donations)

481

employees involved in social actions

70 %

of purchases within 150 km of the units

Newrest gets involved in the social environment of every country where the Group operates. Our compliance with the principles of the Universal Declaration of Human Rights has led us to support the initiatives carried out by NGOs in countries where we operate or to implement our own actions.

MOROCCO ∙ PROMOTING LOC A L AGRICULTUR A L CO OPER ATI V ES

B U Y I N G LO C A L & CO L L A B O R AT I N G W I T H CO O PE R AT I V E S In order to support local products, Newrest has developed partnerships with agricultural cooperatives and local manufacturers all over the world. The products purchased in cooperatives can represent up to 13% of purchases as has been the case in Morocco for 2 years. The products purchased from cooperatives are mostly fresh produce: fruits and vegetables, dairy products and eggs.

In 45% of our countries

Up to

100 %

13 %

of purchases are made locally

of local purchases come from cooperatives

Newrest in Morocco promotes national and regional purchases by collaborating with COPAG, an agricultural cooperative that groups 39 farmers from the Taroudant region in the heart of the country. Our Moroccan subsidiary now purchases 12% of its goods from this cooperative, which supplies it with milk, dairy products and fruit juices.

PERU ∙ COMMITMENT TO LO C A L COMMUNITIES (1) Newrest in Peru continues to solidify its local involvement in relation to the Huagayoc mine. In 2015/16, Newrest continued collaborating with community families for all of its purchases. These families are involved in resale but not production. Each product category (meat, legumes, fruits and vegetables) comes from a different family, which enables the Group to provide income to a larger number of families. Newrest also works with the community for its vehicles and rents pick-ups and trucks from local citizens.

I N V O LV E M E N T I N LO C A L CO M M U N I T I E S

COS TA RIC A ∙ 10 0 % LO C AL PURCHA SES Newrest in Costa Rica is continuously strengthening its partnerships with local suppliers. All produce is purchased within a radius of under 150 km from Newrest production units. This helps support local production.

Everywhere the Newrest Group operates, it is involved in the life of local communities and the surrounding villages. We hire staff from areas close to our operation sites and we implement training and collaboration to improve daily community life.

88 %

of our countries hire more than 95 % of their staff within local population

actions were conduced in 2015/16 in local communauties

PHILIPPINE S ∙ IT EQUIPMENT DONATED TO A SCHO OL 1

In October 2016, Newrest in the Philippines donated IT equipment to the Bethany School of Technology

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and Humanities. Thanks to this initiative, students and professors can benefit from new academic and educational tools.

PERU ∙ SUPPORT FOR THE LOC A L HUDB AY COMMUNIT Y

(2)

In 2015, Newrest in Peru began community action at the first training centre for sustainable development. Located in Hudbay, close to the Constancia mine, this centre offers different theoretical and practical classes in cooking, food hygiene, cleaning and maintenance, led by Newrest employees, among others. Our Peruvian subsidiary is extending its action with families from the Huaylla Huaylla community by providing information about the nutritional benefits of vegetables and plants grown in their own kitchen gardens.

SOCIAL RESPONSIBILIT Y

In the countries where it operates, Newrest Group is involved in social actions which are very important to the Group. FR A NCE ∙ SUPPORT FOR THE SNSM (4)

B OLI V I A ∙ E V ENT PL A NNED FOR COMMUNITIES CLOSE TO THE S AN CRISTOB AL MINE (3) Once again this year, Newrest in Bolivia is participating in local events organised by communities located close to the San Cristobal mine. The foundation of our subsidiary in Bolivia continues its local involvement by providing food or gifts to celebrate the three neighbouring communities.

The SNSM, ‘Société Nationale de Sauvetage en Mer’ (national sea rescue association) has over 7,000 members including 4,400 volunteer on-board rescuers. In 2014, the association had 219 stations in France and in the French overseas departments, as well as 32 training and intervention centres. Newrest began its support of the SNSM in 2015 for the ‘Transat Jacques Vabre’ race. In 2016, for the ‘Vendée Globe’ race, an initiative was carried out to collect funds to help ‘Les Sables d’Olonne’ station acquire suitable rescue equipment. This material enables rescue operations for sailors, fishermen/fisherwomen and amateur sailors.

GREECE ∙ FO ODSTUFF DONATED

Newrest in Greece, in collaboration with the Greek Association of Philanthropy, created a sort of food bank to collect unused food stores and donate them to approximately 300 underprivileged families.

TO ITS SOCIAL ENVIRONMENT

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M A DAG A SC A R ∙ DON ATION FOR CI V ILIAN PROTEC TION On Friday June 3rd, 2016, Ambatovy and Newrest inaugurated the new Civilian Protection camp in Tamatave. Ambatovy built a portion of the buildings and provided vehicles and equipment to this corps of the Malagasy army. Newrest, for its part, donated a camp for the soldiers’ accommodation. The President of the Republic of Madagascar, Hery Rajaonarimampianina, presided over the event. Alexandre Lelièvre, General Manager of Newrest in Madagascar, gave the President a tour of the camp donated by Newrest. Since November 2012, Newrest Remote sites has managed accommodation and catering services for Ambatovy, a nickel and cobalt refinery in Madagascar. Some 6,000 meals are served every day at the different sites.

SOCIAL ACTIONS FOR CHILDREN For the last few years, Newrest Group has been committed to reducing its budget for advertorials and paid advertising, and has been using these savings for social initiatives, especially those that benefit children.

S W ITZERL A ND ∙ COMMITMENT TO ‘PADDLE FOR C ANCER ’

CHILE ∙ SUPPORT FOR UNDERPRI V ILEGED CHILDREN

In August 2015, our Swiss joint venture, Newrest Canonica, renewed its support for the ‘Paddle for Cancer’ association, which organizes an annual sailing race, the proceeds from which are donated to the ESCA (English Speaking Cancer Association) in Geneva. Newrest Canonica supported the event by providing lunch boxes for participants

In a school located very close to the Newrest unit in Chile, some of the children in attendance between the ages of 6 and 13 years old come from poor families. A team helps them to discover the opportunities available in terms of employment and provides career guidance.

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TO ITS SOCIAL ENVIRONMENT

M A DAG A SC A R ∙ PA RTNERSHIP WITH THE ‘ENTENDRE LE MONDE’ A S SOCIATION (5) The ‘Entendre Le Monde’ association, created 10 years ago in partnership with Newrest in Madagascar, conducted a mission to Madagascar from November 8th to 13th, 2015. The president of this association, professor Bertrand Gardini, ENT surgeon at Toulouse, journeyed to Tamatave, Madagascar accompanied by another surgeon (Dr. Calmels) and 2 anaesthesiologists. The mission was carried out at the Morafeno and Analakininina university hospitals. The doctors screened for hearing problems — mainly in children — examined 35 patients, selected and operated on 3 children, formed medical-surgical teams and provided medical equipment. This mission is a long-term one, since, via the internet, the members of the mission in Toulouse will remain in contact with the doctors in Tamatave for patient follow-up and analysis of difficult cases. Furthermore, the ‘Entendre Le Monde’ association plans to return to Tamatave once or twice a year in order to continue training for local teams and to provide medical equipment. This is the fourth field mission conducted in Madagascar since 2012, when approximately 50 patients were cared for by the ‘Entendre le Monde’ association. Catering and the Ambatovy site are managed by 620 employees from Newrest in Madagascar, who provides logistical, financial and human resources to support this mission.

C A MERO ON ∙ SUPPORT FOR CHILDREN’S HOMES Newrest in Cameroon organised the distribution of food and overall everyday care items at the ‘Foyer du Soleil’ Levant, a home for mentally challenged children. Newrest in Cameroon also collaborated with the ‘Foyer Saint-Nicodème’ home for orphans to organise a rugby-initiation day for 60 orphans ages 5 to 12 years old who enjoyed playing the sport.

PERU ∙ A S SISTA NCE FOR CHILDREN FROM THE HUDB AY COMMUNIT Y (6) As part of its support initiative for communities close to the Constancia HudBay mine, Newrest in Peru helped children get ready for the new school year. The Peruvian subsidiary distributed back-to-school kits to children from different villages around the mine. The kit included a backpack, school supplies and a little snack. In addition, teams from Newrest in Peru took the opportunity to explain the basics of a balanced and healthy diet.

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N E W R E S T ’ S CO M M I T M E N TS

TO T H E PL A N E T

Planting of an organic kitchen garden – Newrest Peru ▶

29,375

meals prepared every day with organic products

countries ISO 14001 certified

20 %

of our subsidiaries decreased their waste in 2015/16

Ever conscious of the importance of sustainable development, Newrest ensures that essential environmental values are upheld within the Group. Using local products in season, treating and reducing waste, as well as the ‘Zero paper’ policy, are examples of how company behaviour illustrates the Group’s ecological mindset.

128

using pesticide-free methods, Newrest encourages sustainable and responsible farming.

I S O 1 4 0 01 C E R T I F I C AT I O N POLICY In 2014, Newrest launched a major campaign for ISO 14001 certification for its units. ISO 14001 is an environmental management standard.

29,375

meals prepared ever y day with organic products

It is based on the principle of continuous improvement in environmental performance by controlling the environmental impact of a company’s activity. As part of the certification, 7 country units are now ISO 14001-certified: Austria, Bolivia, Greece, Portugal, Switzerland, Cyprus and Tunisia.(1)

45 %

of our countries use pesticide-free products

FR A NCE ∙ PA RTNERSHIP WITH M A RE VA G A L A NTER ’S BR A ND ‘GOOD ORG A NIC ONLY ’

(2)

Almost one third of the products offered by Newrest in France have already acquired the organic label and are therefore produced pesticide-free. The aim is to increase this proportion continuously. ‘Good Organic Only’ contributes to this effort: the brand offers organic and gluten-free meals and juices. It was created by Mareva Galanter (Miss France 1999) to meet a steadily growing need for such products. Newrest works in partnership with ‘Good Organic Only’ for private VIP flights departing from Le Bourget airport with destinations all over the world. Regular flights departing from Charles de Gaulle and Orly will soon also benefit from having gluten-free and organic meals and juices served on board.

LO C A L PR O CU R EMENT & ORGANIC PRODUCTS In order to minimize environmental impact, one of the Group’s fundamental principles is proper purchasing management: by reducing transport time and opting to purchase foods produced

PERU ∙ COLL A BOR ATION TO CRE ATE A N ORG A NIC KITCHEN G A RDEN Maintenance and catering teams from the Platanal electrical plant (Celepsa Group) have successfully completed an organic kitchen garden. All teams

pitched in from the beginning of the project until it was finished. They managed the treatment of organic waste to create a compost, while ensuring — with the help of gardeners — that the crops were correctly managed so that the products used to make meals were truly organic.

S W ITZERL A ND ∙ ME ALS C ARRY ‘FOURCHE T TE V ERTE’ AND ‘RÉGION TERRE D’AV ENIR ’ L ABELS As part of its Catering activities, Newrest Canonica, our joint venture in Switzerland, has been using the ‘Fourchette Verte’ and ‘Région Terre d’Avenir’ labels for a year now. Most of its sites offer a ‘special organic’ meal. This balanced and organic meal is accompanied by awareness campaigns and quizzes to help introduce consumers to local products. It should be noted that over 30% of purchases are conducted in the cantons where the Group conducts business.

TO THE PL ANET

Our waste awareness campaign, particularly targeting food waste, is still active. The use of ‘Winflight’ software for inflight catering and ‘Winrest’ software for Catering and Remote sites, enables several countries to adjust their production as closely as possible to suit consumption. ‘Winflight’ enables real-time forecasts of the number of meals to be produced, allowing for optimal use of raw materials.

A LG ERI A ∙ EN V IRONMENTAL COMMITMENT (3) Newrest Algeria has been rewarded for its work on the Touargas project. On ‘World Environment Day’, the QHSE department from Tecnicas Reunidas rewarded the employees from Newrest in Algeria working on the Touargas project for their environmentally-friendly recycling and waste-reduction operations.

NE W C A LEDONI A ∙ SUSTAIN ABLE FISHING All suppliers of fish to Newrest in New Caledonia practice certified sustainable fishing. Sustainable fishing is a method that seeks to encourage ecofriendly fishing, by limiting the volumes of fish caught, in order to protect species and by prohibiting certain techniques that are harmful to the ecosystem.

R EC YC L I N G & W A S T E REDUCTION POLICY A major line of action in minimising our environmental footprint is reducing and recycling waste. G ROUP ∙ TAKING A STAND AG AINST FO OD WA STE All our sites and production units have systematically implemented a waste sorting process. This makes it possible for us to reuse a large quantity of waste, such as cardboard, glass, paper, electronic appliances, green waste, etc.

CHILE ∙ REC YCLING A ND THE ORG A NIC WA STE DIGESTER Newrest in Chile is already conducting a recycling process where oils are 100% recycled, paper 50% and cardboard 100%. At the Alma observatory site, an organic waste digester has been installed. This is a container that acts as a sort of artificial stomach where organic matter is broken down thanks to enzymes and bacteria. This action transforms waste into clean water that can be used for vegetation in the Atacama desert, where water is extremely rare. The digester also helps reduce the volume of waste as well as odour. Since December 2016, this system has also been installed at Newrest’s unit in Chile.

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TUNISI A ∙ REC YCLED CO OKING OIL USED TO M AKE BIOFUEL S

UNITED KINGDOM ∙ LEDS LIGHT THE WAY

Newrest in Tunisia is leading an anti-waste and pro-recycling campaign. For this initiative, the company has found new uses for cooking oils. The oils are collected by certified agents who pass them on to factories so that they can be transformed into biofuels. The production of biofuels aims to reduce greenhouse gas emissions and to fight against the depletion of the world’s fossil fuel reserves.

Our Newrest subsidiary in the United Kingdom took measures to significantly lower its energy consumption. One of the steps taken was to replace classic lightbulbs with LEDs (light-emitting diodes). The main difference between these two light sources is their electricity consumption. To produce the same amount of light, an LED bulb uses 90% less electricity than an incandescent bulb.

NE W C A LEDONI A ∙ G ARB AGE CLE AN - UP MGN, partner of Newrest in New Caledonia, conducts a clean-up campaign once a month to pick up all types of garbage and debris. The clean-up zone is located on a public road that sees very heavy vehicular traffic.

REDUCING PA P E R US E Since it was founded, Newrest has maintained a policy to reduce paper printing.

REDUCTION OF ENERGY CO NS U M P T I O N

The Group opts for digital media and uses ecofriendly material when the use of paper is inevitable. In this case, the basic rule is one printout in black and white, using both sides of the sheet of paper.

The sustainable development plan maintained by the Group includes strict measures to reduce the use of electricity and fuel.

FR ANCE ∙ INSTA LL ATION OF DIGITA L PL ATFORMS

Simple actions have already helped the Group reduce its ecological footprint in previous years: systematically closing doors as well as turning off lights, computers, heating and ventilation systems at the end of the day.

CONGO ∙ LOWER ENERG Y CONSUMPTION Newrest in Congo has implemented an awareness campaign and toolbox meetings for its employees, to help reduce its energy consumption. This campaign has been used on different sites to reach clients via informative material. Over the 2015/16 period, Newrest in Congo reduced its paper consumption by 16%, fuel by 6% and electricity by 7%.

Newrest Wagons-Lits in France has put a number of IT tools in place to reduce the use of paper. A blog called ‘SAB Ensemble’ was created to communicate with all of the subsidiary’s 1,500 employees. Similarly, absences have been tracked since 2015 by a digital platform. New printers were purchased that provide more optimal use of ink.

HE ADQUARTERS ∙ 70% RECYCLED PAPER FOR PRINTING (4) Since 2012, any paper printing at Headquarters uses non-toxic and 100% biodegradable ink. The paper used is 70% recycled and 100% recyclable. Using this type of paper for printing this activity report allows us to save approximately 396 kg of CO2. Our printing agency is mindful of its environmental responsibilities, and carries the ‘imprim’vert’ label: it does not use toxic products, it monitors energy consumption and it limits, sorts and reuses its waste, especially in terms of paper volume. Green boxes to recycle the used papers – Toulouse, Headquarter France ▶

AUSTRIA ∙ REC YCL A BLE PACK AGING ON BOA RD ÖBB TR AINS For service on ÖBB trains board, our Austrian subsidiary continues to use 100% recycled and 100% recyclable coffee and tea cups. Garbage bags are also made from biodegradable materials. Cups are made from organic and reusable plastic, and biodegradable packaging is used for cutlery. This initiative enables our subsidiary to reduce waste by 20 tonnes every year.

TO THE PL ANET

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V IS I T O U R W EB S I T E Newrest Activity Report 2015/ 1 6 is available on our website:

www.newrest.eu

P H OTO C R E D I TS Frédéric Maligne for Newrest, Newrest Algeria, Newrest Angola, Newrest ASL, Newrest Bolivia, Newrest Cameroon, Newrest Canada, Alexandre Badot for Newrest Canonica, Newrest Canonica in Switzerland, Newrest Chile, Newrest Colombia, Newrest Congo, Newrest Costa Rica, Newrest Croatia, Newrest Cypr us, Stephan from Orangeline de Pretoria for dnata Newrest, dnata Newrest, Newrest French Polynesia, Newrest France, Newrest Gabon, Newrest Ghana, Newrest Greece, Kopalas Kyriakos from NLS Studio for Newrest Greece, Stelios Neofitou from Natural Light Photography for Newrest Greece, Newrest Gulf, Rija Randrianasolo for Newrest Madagascar, Newrest Madagascar, Newrest Mexico, Newrest Morocco, Newrest Netherlands, Newrest New Caledonia, Newrest Niger, Newrest Peru, Newrest Portugal, Newrest Private, Alex Fadel for Newrest Restauration, Corine Tellier for Newrest in Reunion Island, Newrest Saudia Airlines Catering, Newrest Ser vair in Belgium, Newrest Ser vair in Canada, Newrest SOS, Newrest United Kingdom, Newrest Ser vair in London cit y, Newrest SOS, Newrest Spain, Newrest Tunisia, Newrest UIS, Newrest Wacasco, Newrest Wagons-Lits in Austria, Newrest Wagons-Lits in France, Philippe Voncken from Studio Vezelay for Newrest Wagons-Lits in France, Xanthe Cooke for Newrest Zambia, Fotolia, Dreamstime, Shutterstock. Newrest‒Matmut’s boat photos: Jean-Marie Liot. Cover: Jean Michel Fort, Newrest Group Executive Chef / Photographer : Alex Fadel. Creation: Newrest Printing: Reprint Toulouse This activity report was printed on 70% recycled and 100% recyclable paper. Used ink is not toxic and 100% degradable.

EXECUTIVE MANAGEMENT OFFICE 61, boulevard Lazare Carnot 310 0 0 Toulouse ‒ France Phone: +33 (0)5 62 89 39 88 Fax: +33 (0)5 62 89 39 70

C O M M U N I C AT I O N Dominique PIL AT TE

Communication Direc tor 61, boulevard Lazare Carnot 31000 Toulouse ‒ France Phone: +33 (0)5 62 89 39 79 Fax: +33 (0)5 62 89 39 70

I N V E S T O R S R E L AT I O N S Matthieu JE ANDEL

V ice President Finance 61, boulevard Lazare Carnot 31000 Toulouse ‒ France Phone: +33 (0)5 62 89 39 78 Fax: +33 (0)5 62 89 39 70