A Newsletter for partners and friends of CPCS

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Issue 030•2012JUN

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Issue 030•2012JUN

First of all, a warm greeting to all customers and business partners. In 2011, CPCS achieved a healthy growth of 4% in meal volume over 2010, with a total of 24 million meals produced. The total production inclusive of affiliated kitchens was 50 million meals, achieving a growth rate of 5%. These results were accomplished under challenging conditions. Notably, we faced exceptionally high inflationary pressure on our major expenditure items, i.e. raw materials, labour and fuel. The tsunami tragedy in Japan and its impact on the region was never far from our thoughts. Another natural disaster left much of Thailand flooded for months, and created shortages in supply chains. Prudent cost management, close collaboration with business partners and our employees’ commitment has been our recipe for success.

2012 will be another eventful year for CPCS. In January CPCS turned a new page and achieved a ground-breaking record of 89,704 meals produced in one day during the CNY holidays, which is an excellent kick-start as we are stepping into our 45th year of service in the airline catering industry. Over the past 45 years, CPCS has displayed tremendous passion on food and service to support the success of our customers and Hong Kong Airport. We have grown from a daily production volume of 500 meals to today’s 70,000 meals. While we benefited from automation to maximize process and space efficiency, our staff must also be commended for their contribution to upkeep CPCS service standards.

CPCS currently operates under a franchise agreement with the Hong Kong Airport Authority for a term of 15 years, and this franchise is due to renew in July 2013. The negotiation on the franchise renewal has to kick off no later than July 2012. The term and catering charge under the renewed franchise will be the focus of negotiation. We are fully committed to extend our business operation in Hong Kong for the long-run. Hong Kong Airport has now reached very high capacity utilization: a new monthly record of 29,600 flight movements was set in March. CPCS, being the largest airline catering company in Hong Kong with 45 years of airline catering experience and sophisticated automation system, plays an important role in supporting the efficient operation of Hong Kong Airport. With the approval of the third runway option as the future development direction of the Hong Kong Airport, CPCS is conducting a long-term facility plan to cope with the future growth of airline demands.

Looking forward, the short-term prospect is still full of challenges. The political unrest in the Middle East region keeps fuel price at very high level. The outcome of the Euro zone financial crisis is yet to be unfolded, just to name a few. However, I am confident that we can get through the crisis if we work closely together, as past experiences have proven this again and again.

Mrs. Jenny Lam, CEO

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CEO Message

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This year marks CPCS(HK) 45th year in the airline catering industry. To commemorate this special milestone, an anniversary cocktail party was held on 30th March 2012 at CPCS with over 200 guests comprising airline customers, suppliers, airport community members and business associates joining the celebration. Representatives from our overseas JV kitchens Mr. Charles Peng and Mr. Tim So, GM and Deputy GM of CPCS TPE, Mr. Manny Osmena, Chairman of Cebu Pacific Catering, Mr. Bert Dinkel from Vietnam Air Catering came all the way to attend this momentous event as well. Mr. Osmena had also kindly sponsored half of the wine for the party. CPCS Chairman (Mr. Philippe de Gentile-Williams) and our Chief Executive Officer (Mrs. Jenny Lam) delivered the opening and welcoming speeches respectively to thank all of our business partners for their enduring support.

The venue was carefully decorated with silver as the theme colour that gave the hue of elegance and happiness. The ice

sculptures, the 4.5 feet tall birthday cake and all the sumptuous dishes became the showcase of CPCS’ attention to details and commitment to product and service excellence. Another highlight is the display of our 45th Anniversary video. We had the honor to have invited the former Chief Executive Officers - Mr. Chris Pratt, Mr. Anthony Wong, Mr. P N Tam and Mr. Alex Chau, the current Chief Executive Officer, General Manager and two staff with 40 years of service to share their experience and feelings about working in CPCS through the video. A wine tasting counter, photo exhibition area, entertainment booths and an array of fine food were crowded with guests throughout the event.

The positive comments from guests and no leftovers from the tables were clearly proof of a great success. In appreciation of their continuous supports, we presented a crystal motif with a 3D CPCS building, as well as a gift pack, to all airline customers. All in all, you have made the evening a memorable one for us!

45th Anniversary Cocktail Party

News and Event

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News and Event

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CPCS MilestonesCongratulations on CPCS 45th anniversary in 2012. Here are some of the CPCS’ major events over the past 45 years.

1967•AirCaterersLtd.(ACL)wasestablished,withCathayPacificAirwaysand Hong Kong & Shanghai Hotels Ltd holding 75% and 25% share respectively.•Productionlevel:500meals/day

1992•ThecompanywasrenamedasCathayPacificCateringServices(H.K.)Ltd and became 100% subsidiary of Cathay Pacific Airways in 1996.

1994-96•AccreditedwithISO9001-theQualityManagementSystem•FirstorganizationinHKGtobeaccreditedwithISO14001

1997•CPCSfacilityatChekLapKokunderconstruction.

1998•NewCPCSbuildingatChekLapKokwasfullyoperationalinJuly•WithaninvestmentofHK$1.60billion,itwasthelargestflight kitchen under one roof in the world•Productioncapacity:80,000meals/day

2006•CPCSjoinedthetestflightfortheSuper-jumbo:A380

2009•ReceivedtwoawardsfromCX: 1) Best Caterer Diamond Award; 2) Most Improved Caterer Award.

2009•FirstcatererinHongKonghandlingA380.

2010•HongKongManagementAssociationQualityAward – Bronze Award

2011•Receivedthe100th Hi-loader

2012•Recordhighdailynumberofmealsandflights on 21st Jan 2012. - 89,704 meals - 192 pax flights

News and Event

Ho Ka Ming (OPS)

The workshop content is very practical. I have learnt some techniques on communication and EQ management which I can easily apply to my work.

Team Building Programme

Paulus Lin (ASD)

The interactive workshop gives us positive reinforcement to boost up the team spirit. It makes me understand the importance of mutual trust and respect among colleagues.

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We work as a winning team with trust, respect, empathy and an open mind towards our common goals.

Our People

UNICEF & CX Charitable Field Trip to LaosInearlyMarch,IwasdelightedtohavetheopportunitytovisitLaoswith20CXdelegates. This six-day UNICEF field trip allowed us to witness first-hand what the “Change for Goods” programme is all about.

In Hong Kong, I often hear parents say to their kids, “Hey sweetie, you have to share with others!”

In Laos, I dare not say the word “share”...

When we were handing out sweets or stationery to the kids in Laos, we had to make sure we have enough for all of them! We were told by the helpers in UNICEF that people there emphasize on ‘equality’, but not ‘sharing’. It is simply because they do not have things to share. Then I realized it’s really a blessing to be able to live in Hong Kong. At least we have all the basic necessities and are able to share with friends and families…

There is so much to say about the trip, but I’d like to share the most unforgettable experience here - a home visit to a Laos boy’s family. This 13-year-old boy attends a UNICEF-supported primary school located in a rural village near Luang PraBang. His father, who looks like 70 but actually only 45, makes knives for a living.

Looking around his “home”, there are only 2 “beds” - or you can say wooden platforms - shared by 7 people, and a so-called kitchen with a primitive stove… There is no toilet or other furniture!

The father told us in a gentle and calm tone that three of his nine children had passed away. They were struck down by malaria and other unidentified infections. He was living in a house with a two-hour walk from the medical centre… and because of that 2 hours of walk, it separated him from his beloved children forever.

Although we feel sad for his misfortune, he is contented with his life. He thinks he is already a lucky one in Laos because he can make his own living.

When asked about the expectation to his kids, he said he would like them to receive more education before they start their own family. He believes knowledge can help them find a better job and lead a better life.

The whole experience gave me a new perspective on life. After this trip, I would pay more attention to the underprivileged and contribute more efforts to make this world a better place. “Change for Goods” is definitely worth recommending to you all!

Boey ChanAirline Account Manager

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Our People

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From Mr. Eric Cheng, Regional Catering Manager Australia, NZ & HK, Cathay Pacific Airways

From Ms. Anna Leung, Finance Officer, Qatar Airways

Nothing is more rewarding than receiving positive feedback from our customers on our quality products and services. CPCS staff feel strongly motivated when they are recognized by customers for their outstanding service and commitment to excellence. CPCS has been running a ‘Value Recognition’ Programme to reward staff who receive compliments from internal and external customers. We extracted a few compliments from the many received to share with you.

I would like to give my heartfelt thanks to all your staff in the preparation for the start up of PEY which we have introduced in Mar. I recalled I held a meeting in Feb and there was about 20 of your staff from every section attended. All of them had a clear understanding of our expectation and had raised relevant questions.

Thank you so much for your help, Boey. I greatly appreciated the assistance you and your team provided me yesterday that made my stock count very smooth and satisfactory.

The efficient and effective performance of your staff demonstrates a very strong teamwork that should be an asset of CPCS! Again thank you every one who put effort to support me yesterday. Wish you every success and CPCS a very bright future!

From Ms. Annie Wong, Flight Attendant, Jet AviationMr. Lam is a very polite, service-minded delivery guy, who always did a perfect job at catering uplift for me, and sometimes even helped my catering setup when he’s available.

I would like to give my big thank you for his great service!

Thanks so much for your help and understanding, also the professional chef n Samuel’s help! Highly appreciated!!

From Mr. Wilson Ma, Senior Customer Services Officer, Singapore AirlinesSQ748/06Apr2012,HKG-SINdepartedHKGontime.Fullsupportfrom PRO, PCD, ITO and ECP are greatly appreciated.

Their supports and assistances have made the flight success and smooth. Please convey my sincere thanks to all of them.

Compliments from Customers

Customer Focus

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Customer Focus

SQ B747 Decommissioning FlightSingapore Airlines (SIA) bade farewell to its Boeing 747 passenger fleet on Friday, 6th April 2012 with special memorial flights between Singapore and Hong Kong that commemorated the B747’s 38-year history with the airline.

FlightSQ747departed fromSingapore’sChangiAirport in themorning and arrived at Hong Kong in the afternoon before operatingareturnflightSQ748.TotakeaceremoniousfarewelltoitslastB747passengerflightSQ748,SIAorganizedaseriesof celebratory events at Boarding Gate 25 at Terminal 1.

To commemorate the occasion, special menus were designed for all classes of passengers. CPCS’ team of culinary consultants co-operated with SIA’s Manager, Inflight Services (Food & Beverages), Mr. Hermann Freidanck in March to finalize these memorable menus. Special dishes included satay, caviar, US CAB beef tenderloin, double-boiled almond cream with bird’s nest and many others. Passengers from all classes enjoyed the premium courses as well as top-quality wines very much. We were delighted to receive numerous compliments on both food quality and service delivery from SIA and its passengers.

This is one of the examples of CPCS’ commitment in total customer service to our customers. We will continue to provide seamless service to all our customers, helping them to achieve their ultimate goals!

EVA Best Performance AwardCPCS was proud to have received the 2011 Excellent Performance Award from EVA Air.

The Airline Account Manager, Mr. KK Leung, attended the award presentation ceremony held on 2nd March 2012 at the Intercontinental Grand Stanford Hotel, Hong Kong.

CPCS will continue the dedicated efforts in service excellence and is poised to being the most valued catering services partner in Asia.

Excellent Performance Award

Mr. James Chiou, General Manager, EVA AIR (left) and Mr. Bryan Chang, Station Manager, EVA AIR (Right) presents the Excellent Performance Award to Mr. KK Leung, Airline Account Manager

Mr. Kenneth Luk, Airline Account Manager (middle) with the cabin crew of Singapore Airlines

CPCS Hi-loader was catering to the last Boeing 747 of Singapore Airlines

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Sustainable Food PolicyIn alignment with the Swire Group’s vision and policy of sustainable development, CPCS has implemented the sustainable food policy to support the conservation of the ecosystems.

Over-catching is endangering some species and the ecosystems. As the consumption of food in airline catering in terms of quantity and variety can be huge, we need proactive sourcing of sustainable food items and careful menu planning to help preserve some endangered species and the ecosystems. We therefore encourage our customers to avoid featuring the following unsustainable food items in the menus:

1. Abalone (South Africa, wild caught) 2. Bluefin tuna (Global, wild caught) 3. Humphead wrasse (South East Asia, wild caught) 4. Shark’s fin (Global) 5. Snake (Global, wild caught) 6.Sturgeon/paddlefishcaviar(Global,wildcaught)7.Softandhard-shelledturtle/tortoise(Global,wildcaught)

Sustainable Development

Our choice of opting out unsustainable food products and proactively asking for information about the source of the food items could create momentum for a swift change in the industry at large. This also demonstrates our leadership in being a good steward of the natural resources and biodiversity. Let’s join together in conserving the ecosystems today!

Computer Upgrade and Caritas Computer Refurbish ProjectTo improve work efficiency and enhance productivity, our Management Information System Department has rolled out the upgrade of office PCs and software. The by-product of the exercise is the creation of hazardous waste of old PCs. Therefore, we cooperated with the Caritas Hong Kong Computer Workshop (CCW) in finding a solution which is beneficial to all parties.

New computers arrived in our Management Information System Department

Computers and accessories donated

Truck of Caritas Hong Kong Computer Workshop

Computers and accessories donated

The computers and accessories would be tested, refurbished, upgraded and donated or sold at cost to the nonprofit making organizations. Parts that are too old or cannot be repaired would be sold to recyclers. The income received is used to cover the Workshop’s daily operation expense. CCW also provides training to young people who have relatively low education levels and social skills. This project served dual purposes in helping the needy on one hand and reducing waste on the other.

Items donated include:•77PCsandaccessories•7CRTMonitors•28Printers•1Scanner•10UPS•Keyboards,miceandCD-ROMs

Mr. Abdul Rafek Mohamed Saleh of Malaysia Air lines hands over Cer tificate of Halal Compliance and Halal Appreciation Award to Mr. Nguyen Quang De and Mr. Ber t Dinkel and other Team Members of Vietnam Air Caterers

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VAC, Deputy GM Message

News from Sister Kitchens

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Inflation! Inflation! Inflation! Inflation rate in Vietnam in 2011 rose to 18.12% after recording a 0.53% increase in December 2011 CPI alone, not reflecting the rise in electricity cost of 5 % and air ticket ceiling price hike. Similar inflation rates were recorded in the past years, and despite moving on with its rapid development, Vietnam in fact has the highest

inflation rate in 2011 among all Asian’s countries. The Vietnam government has put all its efforts to control inflation and hopes to lower the inflation rate to 11.3% in 2012, and 8% in 2013. For Vietnam Air Caterers, the high operating cost has brought extensive challenges. Not only have food prices increased tremendously in the past but also staff cost and other necessary operating expenses. The Management has reviewed the operation and implemented measures to tackle the increased costs, but the balance is far from achieving the required results. Even under such tough conditions, Vietnam Air Caterers will not jeopardize its service levels at all. This is definitely recognized by our airline partners during this difficult year 2011.

Vietnam Air Caterers was proud to have received a total of 6 Catering Awards from customers in 2011, namely:1. Silver Prize 2011 for Short haul from EVA Air;2. Silver Prize 2011 for Medium/ Short haul fromAll Nippon

Airways;3. Appreciation Award 2011 for Halal operation from Malaysia

Airlines;4. Golden Award from Asiana;5. Reliability Award from United Airlines;6. Merit Award 2010 from Singapore AirlinesIn response to such delightful encouragements, Vietnam Air Caterers will continuously deploy all its efforts to maintain the highest possible standard for the years to come.

Vietnam Air Caterers is contended to be the service partner to Emirates Airline which started operation its daily flight between DXB/SGN/DXBfrom4th June utilizing Airbus 330.

TPE, KLM Royal Dutch Airlines – Flying Non-stop from TPE to AMSOn 25th March 2012, KLM Royal Dutch Airlines (KL) launched its first ever non-stop flight operation from Taipei to Amsterdam. KL and CI have been business partners for many years as both companies are Sky Team members. With the invitation by Mr. Charles Peng, General Manager, Mr. Pieter J. Th. Elbers, Chief Operating Officer of KL, together with two directors in charge of alliances and government & industry affairs, visited CPCS/TPE. Presentation and kitchen tour were arranged toextend our warm welcome to the honorable guests from KLM.

From left to r ight: Mr. Charles Peng, Generak Manager, CPCS/TPE and Mr. Pieter Elbers, CEO, KLM

CLS, Good Will AmbassadorMs. Teresa Barnwell is the “Good Will Ambassador” of CLS who takes charge of the charitable efforts at the catering center.

Over the years, many charity organizations have been benefited from the various fundraising activities held by CLSD, such as employee contributions, recycling efforts, as well as the Women’s Shelter, Richmond Food bank and Canuck Place Hospice (a facility that houses children with life-limiting illnesses and their families).

CLS sponsored a team of 17 runners to participate in the 10km Sun Run on 15th April 2012 to raise money for the Children’s Hospital Fund, so far our employees have pledged overCAD$800.

Congratulations to Teresa, Tony and the rest of our employees at CLS who have Big Hearts for Good Causes! Thank you all for your generous donations!

Ms. Teresa Barnwell and Mr. Tony Wong

Mr. Bert Dinkel, Deputy General Manager, Vietnam Air Caterers