02 Financialreport Complete e 0

FINANCIAL REPORT
02_
01 [ 11.000 ]
02 [ 41.000.000 ]
03 [ 4.038.286 ]
04 [ 66 ]
05 [ 632 ]
6 [ 250.000 ]
08 [ 47.2 ]
07 [ 400 ]
09 [ 1972 ]
10 [ 1 ]
11 [ 23.501 ]
12 [ 100.000.000 ]
15 [ 3 ]
16 [ 106 ]
17 [ 58 ]
18 [ 12 ]
20 [ 8.636.034 ]
13 [ 14 ]
14 [ 38.400 ]
19 [ 90 ]
21 [ 24 ]
22 [ 350485 ]
23 [ 7 ]
28 [ 9 ]
29 [ 1.546 ]
31 [ 952.000 ]
34 [ 100 ]
37 [ 2.856.000 ]
24 [ 3.400.000 ]
25 [100 ]
26 [ 87 ]
35 [ 63 ]
27 [ 16.300 ]
30 [ 240.261 ]
32 [ 20 ]
33 [ 7.000 ]
36 [ 11 ]
38 [ 163 ]
39 [ 21 ]
40 [ 34.000 ]
41 [ 526 ]
42 [ 2.404 ]
44 [ 44 ]
46 [ -14.9 ]
45 [ 1963 ]
47 [ 7.000 ]
48 [ 660.000 ]
49 [ 40.000.000 ]
50 [ 3.000.000 ]
02 FINANCIAL REPORT
43 [ 90.000 ]
KUONI GROUP
50 facts and figures for the Kuoni Group in 2011
02 FINANCIAL REPORT
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[ Average number of employees in 2011 ]

[ Visa applications by VFS Global in 10 years ]
[ Customers worldwide ]
[ Kuoni hotels in the Maldives ]
[ Pages in annual report ]
[ Images in global picture archive ]
[ Daily number of Japanese visiting Paris with Kuoni ]
[ Average age of group management ]
[ Year of stock exchange listing ]
[ Group CEO ]
[ Pages in Swiss catalogues ]
[ Rail kilometres travelled by CH rail specialists in 2011 ]
[ Flagship Stores ]
[ Annual number of employee meals at Kuoni headquarters ]
[ Company-owned aircraft / Novair ]
[ Years in the travel business ]
[ Background stories on the groups intranet page in 2011 ]
[ Opening of remodelled Kuoni travel stores in Switzerland ]
[ Kuoni hotels with Travelife Award ]
[ Visa applications by VFS Global in 2011 ]
[ Kuoni Academy training centres in India ]
[ Security number of Kuoni registered shares B ]
[ Members of the Board of Directors ]
[ Google search results ]
[ % of CO2-compensated business trips by employees ]
[ Destinations ]
[ Tonnes of waste recycled by Kuoni/myclimate in Bali ]
[ Pages in the Kuoni Code of Conduct ]
[ Children supported by Kuoni projects ]
[ Kuoni Facebook Likes ]
[ Number of registered shares A ]
[ Kuoni No. 1 Travel Bags ]
[ Dinners in Burj al Arab organised by Kuoni in 2011 ]
[ Kuoni travel stores in Switzerland ]
[ Countries where the Kuoni Group is active ]
[ Times in a row Worlds Leading Tour Operator ]
[ Number of registered shares B ]
[ Number of Kuoni travel stores worldwide ]
[ Volunteering offers by Kuoni Switzerland ]
[ GTS clients: travel agencies, tour organisers, online portals ]
[ VFS Global Visa Centres worldwide ]
[ Employees of VFS Global ]
[ Hotels available on Octopus.com ]
[ % of women in middle and senior management ]
[ Kuoni opens its first branch in Japan ]
[ % of US dollars drop against the CHF in 2011 ]
[ Overnight stays in Italy with GTS per day ]
[ GTS division bookings in 2011 ]
[ Daily queries in GTS databases ]
[ Annual overnight stays of GTS groups in Europe ]
KUONI ANNUAL REPORT # 2011
Kuoni GRoup
02_
Financial Report 132
02_00_01_
Kuoni Principles (2) 133
02_00_02_
The topic of Continuity 134
02_01_
Comment Financial Report (Group) 136
02_02_
Five-Year Summary of Key Data
02_03_
Pro Forma Figures 162
02_04_
Kuoni Group 166
02_04_01_
Statement of Financial Position
02_04_02_
Income Statement 168
02_04_03_
Statement of Comprehensive Income 169
02_04_04_
Statement of Changes in Equity
158
167
02_06_
Corporate Governance 258
170
02_06_00_
Introduction 259
02_04_05_
Statement of Cash Flows 171
02_06_01_
Group Structure and Shareholders
02_04_06_
Accounting Principles 172
02_06_02_
Capital Structure 261
02_04_07_
Notes to the Consolidated
02_06_03_
Board of Directors 268
Financial Statements 179
02_06_04_
The Group Executive Board
280
02_04_08_
Principal Subsidiaries and Associates 230
02_06_05_
Compensation, Shares and Loans
281
02_04_09_
Report of the Statutory Auditor
02_06_06_
Shareholders Participation Rights
282
02_06_07_
Changes of Control and
234
260
02_05_
Kuoni Travel Holding Ltd.
238
02_06_08_
Auditors 286
02_05_01_
Statement of Financial Position
239
02_06_09_
Information Policy 287
02_05_02_
Income Statement 240
02_06_10_
Compensation Report 292
02_07_
Appendix 312
02_07_01_
Agenda 2012 313
02_05_03_
Notes 241
02_05_04_
Board of Directors Proposal for the
Defence Measures 285
Appropriation of Retained Earnings 253

02_05_05_
130 | 131
254
Kuoni Annual Report # 2011
02_00_01_
Financial Report
K u o n i G R OUP
Kuoni Principles (2)
Business comes and goes.

+
Unlike a company rooted in tradition,
but existing in time.
=
Its name stands for
only one thing: continuity.1
1
Kuoni has been helping to shape
the travel industry since 1906 and
it has always focused on meeting customers needs, expanding its services
and staying ahead of the times. A pronounced commitment to service is
a firmly established part of the com
panys tradition.
The prerequisites for the company and
the environment in which it operates
may change, but Kuonis reliability as
a tour operator makes it a safe bet, offering its customers certainty, transparency and honesty. This continuity
is still one of Kuonis distinguishing
factors, forming a solid foundation for
the future of travel.
02 Financial Report
132 | 133
02_00_02_
Financial Report
K u o n i G R OUP
Kuoni is here for the long term.
Travel (ling)
Conti nuity.
Committed to continuity.
Over the course of more than a hundred years Kuoni has coped with numerous negative influences and responded early to trends as they have
emerged. To master crises and keep
moving forward, it is vital to take a
flexible approach to changing market
situations and requirements, and to
invest in areas with potential for the
future. Kuoni does this, guided by constant, timeless values such as reliabi
lity, passion and authenticity.
2011 was another year characterised
by negative external influences. There
was political turmoil in Arabic countries, a serious earthquake followed
by a tsunami and a nuclear disaster in
Japan, floods in parts of Thailand and
a debt crisis in Europe. Tourism has
always been dependent on external factors that vary from year to year. Whether its political turbulence, environmental disaster or economic change,
Kuoni keeps to its principles, reacts responsibly to the challenges that come,
invests, acts anticyclically when it has
to, and always does its best to produce
sustainable, profitable results.
02 Financial Report
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02_01_
Financial Report
SUBSTANTIAL INCREASE IN TURNOVER AND EARNINGS
business year 2011
K u o n i G R OUP
investors and consumers. Against this background, the emerging markets

continued to be the driving force of global economic growth. The uncertain-
The Kuoni Group delivered an encouraging business performance for 2011
ties over the ramifications of the government debt crisis in Europe
in a very challenging market environment. Thanks to increased turnover
had a number of negative effects, including increased volatility in the
and despite the one-off costs associated with the acquisition and integration
exchange rates of various currencies against the Swiss franc, which
of Gullivers Travel Associates (GTA), the net result for the year was a
reached new highs in euro and US dollar terms until the Swiss National
clear improvement on 2010. With the depressed general economic climate
Bank intervened on 6 September.
and the political upheavals in the Arab world, the market environment
proved far from easy in 2011, especially for European tour operating
GLOBAL TOURIST SECTOR DEFIES MUTED ECONOMIC GROWTH
activities. Nevertheless, the Kuoni Group posted turnover for the year of
The United Nations World Tourism Organization (UNWTO) has projected

the following regional growth rates for
international arrivals in 2011 (source:
UNWTO, January 2012):
CHF 5111 million, a 28% nominal increase on 2010. The effect of a
Despite a worldwide economic situation that was far from bright and
strongly appreciating Swiss franc eroded 8.3% of the Group turnover.
despite further unforeseen unfavourable events, the global tourism sector
Acquisitions raised Group turnover by 35%. Organic turnover
showed largely positive trends. The United Nations World Tourism
growth amounted to 1.2%, and was driven by the continued sizeable
Organization (UNWTO) expects international arrivals for 2011 to show
expansion of business within Division Destinations and in the
a 4.4% growth (source: UNWTO, January 2012), continuing the gene-
Groups Asian and VFS Global activities. Earnings before interest and
ral recovery of the tourist sector that was first felt the previous year. The
Asia-Pacific: 5.6%
taxes (EBIT) amounted to CHF 74.2 million, a 27% improvement on
tsunami and subsequent nuclear crisis in Japan as well as the political
Americas: 4.2%
Europe: 6.0%
the CHF 58.4 million of the previous year. EBIT net of the costs of the
upheavals in North Africa and the Arabian Peninsula all had a tangible
investment and cost-reduction programme, ordinary amortisation of
effect on the tourism sector. Higher costs, meanwhile especially through
acquisition-related intangible assets and the one-off costs associated with
rising oil prices weighed heavily on the already narrow margins of
The Middle East: 8.0%
the acquisition and integration of GTA, stood at CHF 168.9 million
the fiercely competitive leisure travel segment. The political developments
Worldwide: 4.4%
(compared to CHF 127.1 million in 2010). The net Group result for the year
in North Africa also help explain the regional shifts in recent market
amounted to CHF 33.3 million (compared to CHF 23.2 million for 2010).
growth, which has seen a narrowing in rates between mature and emer-
Africa: 0.0%
ging markets after the latter had served as the prime mover in global
The International Monetary Fund
(IMF) has projected global economic
growth of 3.8% for 2011 (source: IMF
World Economic Outlook Update, January 2012), 1.4 percentage points less
than the previous year. Once again,
the emerging nations were the prime
growth drivers (China 9.2%, India
7.4%, Russia 4.1%, Brazil 2.9%), though
even these countries faced a less positive economic climate than they had
enjoyed in 2010. Growth in the deve
loped markets (Switzerland 1.9%, USA
1.8%, euro zone 1.6%, UK 0.9%) was
clearly compromised by the current
debt crisis.
RISING UNCERTAINTIES ON THE FINANCIAL MARKETS SLOWING
GLOBAL ECONOMIC GROWTH
tourism development over the past few years. With the exception of the
Middle East and North Africa, all the worlds regions reported positive
tourism growth. Arrivals in Europe saw an above-average increase, as
Global economic development slowed substantially in the course of 2011.
Southern Europe attracted more tourists seeking alternative destinations
The loss of momentum can be attributed to a number of negative influen
in the light of the unrest in North Africa and the Arabian Peninsula.
ces in the first half-year, such as the civil unrest in North Africa and
Asia, too, posted a positive overall trend, despite the Japanese disaster.
the Arabian Peninsula, the devastating earthquake and tsunami in Japan

(and the ensuing critical situation at the Fukushima nuclear power
plant) and the uncertainties on the financial markets deriving from
Europes debt crisis. Fears of a possible return to recession in the worlds
developed markets prompted a sizeable loss of confidence among
02 Financial Report
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02_01_
K u o n i G R OUP
>>
Comment Financial Report (Group)
THE KUONI GROUP: TURNOVER GROWTH IN ASIA
AND AT DIVISION DESTINATIONS
>>
worlds financial markets. The Swiss franc, a traditional safe haven currency, gained in value against all of Kuonis main foreign currencies
in cost and revenue terms, reducing consolidated turnover for the period.
The Kuoni Group increased its turnover substantially in 2011 com-
The impact of currency movements eroded some CHF 329 million or
pared to prior-year levels. Business showed broadly positive development,
8.3% of the turnover for the year.
though substantial differences were seen in the performances of the

Groups various regions and activities. Division Destinations reported
particularly positive trends and a further increase in turnover from
28% improvement on the prior-year period. Organic growth (i.e. excluding
Consolidated turnover for 2011 totalled CHF 5111 million, a
its existing Kuoni Destination Management activities. The new businesses
currency effects and the impact of acquisitions) amounted to 1.2%.
acquired, Gullivers Travel Associates (GTA), also added substantially

to the divisions turnover volume. Strong increases were witnessed, too, in
the Groups Asian leisure travel business. And VFS Global, the Group
subsidiary that specialises in providing administrative consular services,
Group turnover of
CHF 5111 million by activity
saw another significant expansion of its business activities. On a less
46%
Destination
Management
Services
positive note, the repercussions of the Arab Spring, declines in both

consumer confidence and disposable incomes, high currency fluctuations
as well as the uncertain economic outlook all combined to depress the
European leisure travel business.
54%
Tour Operating
Business
Turnover development in 2011 was influenced exceptionally strongly
Lime Travel AB (acquired effective 1

March 2011) is one of Swedens leading providers of luxury travel arrangements. The company generated annual
turnover of around CHF 9.3 million
in 2010.
The first of these acquisitions, made a substantial contribution to the turn-
www.limetravel.se
based Gullivers Travel Associates (GTA), which has since been assimi-
by Kuonis acquisition activities and the strength of the Swiss franc.

over growth. Kuoni acquired the business of Lime Travel AB of Sweden
effective 1 March; with economic effect as of 1 May Kuoni acquired London-
18%
Scandinavia
46%
Destinations
lated into Division Destinations within the Kuoni Group. Extrapolated to

Gullivers Travel Associates (GTA) (acquired effective 1 May 2011) is a global
leader in the rapidly-expanding online
travel services market. GTA reported a
turnover volume of CHF 1865 million
for the 2010 business year.
10%
UK & Benelux
the full-year period, the acquisitions executed by Kuoni in the course

of 2011 add CHF 1829 million to annual consolidated turnover. The
13%
Switzerland
aggregate purchase price for all acquisitions combined amounted to

CHF 619 million. The acquisitions added CHF 1355 million to Group
turnover in 2011, an increase of 35%.
www.gta-travel.com
Group turnover of
CHF 5111 million by segment
7%
Asia
6%
Southern Europe
Currency movements were the second major influence on Group
turnover trends. The 2011 business year was characterised by exceptional

volatility in foreign exchange rates, as a result of the uncertainty on the
02 Financial Report
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02_01_
K u o n i G R OUP
>>
>>
The Kuoni Group positions itself as a global and service orientated
travel provider that is active in leisure travel services (which accounts for
Division northern REGION: TURNOVER MAINTAINED AT
PRIOR-YEAR LEVELS
51% of its turnover), destination management services (which generates

46% of Group turnover) and Visa services (accounting for 3% of turnover).
Kuoni Scandinavia sustained an 8.3% decline in turnover for the year to
Destination management services increased its share of total Group
CHF 958 million, principally as a result of currency movements.
turnover significantly in 2011, largely as a result of the acquisition of
In local-currency terms, business volumes for Kuonis Nordic operations
GTA. Kuonis Asian activities also continued their recent trend of
were maintained broadly at prior-year levels, despite the relatively
accounting for an increasingly higher proportion of total Group turnover.
severe impact of the political upheavals in North Africa. The source markets
Within the Kuoni Group portfolio, however, the turnover generated
of Sweden, Norway and Denmark and business in the newly-tapped
remained broadly spread among the Groups three divisions and their
Finnish market were spared major damage thanks to flexible capacity
various markets. The year also saw a further increase in the inter
management. Novair, the airline operated by Kuoni Scandinavia, was
nationalisation of the Groups leisure travel business.
forced to suspend its services to North Africa for several weeks in spring,
Division Northern Region consists of

Kuoni Scandinavia (Sweden, Norway,
Denmark, Finland, Russia and the
Novair airline, plus the Playitas vacation resort in Spain) and Kuoni United
Kingdom & Benelux. The division generated turnover of CHF 1465 million in
2011 (2010: CHF 1640 million).
Scandinavia generated turnover of
CHF 958 million (2010: CHF 1045 million).
but swiftly found alternative destinations such as the Canary Islands
Turnover for individual markets

(CHF million)
2010
2011
Net of currency movements, the Division Southern Region and
for the aircraft concerned. The tour operating business of Russia-based
Destinations divisions improved on their prior-year performances in
Megapolus Tours was substantially reduced in the course of the year,
turnover terms. But Division Northern Region and Division Southern
with the high-risk charter airline business abandoned entirely from the
Region both sustained declines in their business volumes as a result of the
start of the summer season. These actions significantly reduced turnover
Swiss francs strength. The overall positive trend was driven largely by
from the Groups Russian market activities, but greatly reduced the ope-
continued strong growth in the Groups destination management
rations risks, too. Thanks to its redevelopment as a state-of-the-art sports
business, in the external consular services offered by VFS Global and in
and family resort, the Playitas complex on Fuerteventura in the Canary
Kuonis Asian tour operating activities.
Islands was able to tangibly increase its occupancy and turnover volume.
3000
3000
2500
2405
2500
2000
Kuoni United Kingdom generated

turnover of CHF 402 million (2010:
CHF 477 million).
Swiss franc. As well as Pounds decline, business in the UK market was
1500
1500
1000
lion for the year, a 15% decline on 2010 that can be primarily ascribed to
the tangible weakening of the euro and the British pound against the
2000
1000
Kuoni United Kingdom & Benelux posted turnover of CHF 507 mil-
1045 958
595 507
500
500
1017
797 712
355 305
316 370
Southern
Europe
Asia
depressed by a clear deterioration in consumer mood and a slump in

vacation demand. The political upheavals in Egypt, one of its important
destinations, also negatively affected UK business. Beside, Kuonis UK
0
Scandinavia
UK &
Benelux
Division
Northern Region
Switzerland
Division
Southern Region
Destinations
Division
Destinations
operation did enlarge its network of own sales offices from 12 to 21, and
also expanded its partnerships with various travel agents. For Kuoni
Benelux (which is active in the Netherlands and Belgium), the turnover
decline was due solely to currency movements. The fall in business
Kuoni Benelux generated turnover of

volumes via external travel agencies (which was caused by a decision to

focus on the organisations own sales offices) was offset through the
02 Financial Report
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02_01_
K u o n i G R OUP
>>
>>
opening of new Kuoni retail outlets and the acquisition of Best Tours
business being conducted via external travel agencies proved a clear
Belgian operations.
disadvantage. In view of this, Kuoni France endeavoured to focus on

direct sales by expanding its own sales office network. Kuoni Italy raised
Division southern REGION: ASIA AGAIN THE PRIME GROWTH DRIVER
its turnover year-on-year thanks to the addition of specialist operator

Best Tours Italian business activities. The new acquisitions cultural trips
Division Southern Region comprises

Kuoni Switzerland, Kuoni Southern
Europe (France, Italy and Spain) and
Kuoni Asia (India including VFS Global
and China/Hong Kong). The division
achieved turnover of CHF 1386 million in 2011 (2010: CHF 1468 million).
The strength of the Swiss franc against

the euro prompted business to be lost
to providers outside Switzerland:
some to travel agencies in neighbouring countries (Germany in particular)
and some to online booking portals offering euro-denominated deals to the
Swiss market.
Kuoni Switzerland generated turnover of CHF 712 million in 2011, an
to Egypt were, however, especially severely affected by the local poli-
11% decline on the prior-year period. The political unrest in Egypt,
tical upheavals. After opening new sales offices, Kuoni Spain was able to
Tunisia and Morocco adversely affected vacation travel demand in the
maintain its annual turnover almost at prior-year levels in local-
Swiss market, too. The suspension of leisure travel flights to Egypt
currency terms.
Kuoni France generated turnover of

Kuoni Italy generated turnover of CHF
94 million (2010: CHF 92 million).
Kuoni Spain generated turnover of
and Tunisia had a major impact on business levels: Egypt in particular

The Asia region, which consists of Kuoni India and Kuoni Hong
has been a key Swiss travel destination, especially in the winter season.
The slump in business to the countries concerned was only partially offset
Kong/China, achieved a substantial increase in turnover, in a highly
through new bookings and rebookings for the Canary Islands and from
favourable business and market environment. The annual turnover of
spring onwards to Greece and Turkey. While the strength of the Swiss
CHF 370 million was not only a 17% improvement on the CHF 316 mil-
franc had a basically positive impact on demand in the Swiss market for
lion of 2010; it was a further record result. Kuoni India saw a substantial
travel products, this benefit was restricted as it was for many Swiss
increase in its tour operating business, thanks to further market ex
tour operators by a substantial increase in customers preferring to
pansion and despite the adverse impact of the Indian rupees weakening
make their bookings at travel agencies across the border in neighbouring
against the Swiss franc. Kuoni Indias business-to-business activities,
countries or via foreign online portals offering euro-denominated
which offer travel products to Indian companies and organisations, raised
products. Kuoni Switzerlands specialist travel brands also suffered turn-
their passenger volumes by some 50%. The direct customer business
over declines, with Africa, Intens Travel and Manta Reisen (diving)
also posted significantly higher turnover, thanks largely to the further
particularly hard hit by the developments in the Arab world. Railtour
expansion of the local sales network. In addition to its traditional
and Frantour, Kuonis two rail travel specialists, continued to face a
travel businesses, Kuoni India also reported a tangible increase in the
tough business environment. Results for Northern Europe specialist Kon-
turnover generated by its VFS Global subsidiary, which offers external
tiki, however, were a tangible improvement on the previous year, when
consular services, as a result of new contractual agreements with
business had been severely affected by the Icelandic volcanic eruption.
various government authorities. VFS Global now provides its services for
37 governments in 62 countries. Kuonis leisure travel company in
All Kuonis country organisations in Southern Europe felt the twin
China/Hong Kong delivered a highly encouraging performance for 2011
impact of the upheavals in North Africa and the bleak economic situation
in a favourable economic environment. By expanding its product
in the euro zone. With consumer mood still depressed, unemployment
portfolio and by swiftly and flexibly realigning its product offer in res-
levels high and tough price competition being waged in the tour operating
ponse to the tsunami in Japan and the political upheavals in North
sector, business volumes for 2011 were down on their prior-year levels.
Africa, Kuoni China/Hong Kong achieved an annual turnover result that
The CHF 305 million turnover for the year was a 14% decline (or 3.8% in
was a tangible improvement on 2010 in local-currency terms.
Kuoni India generated turnover of

CHF 325 million (2010: CHF 271 million). This includes VFS Global with a
share of CHF 176 million (2010: CHF
156 million).
For a description of the VFS Global

business model, please see Page 120.
Kuoni China/ Hong Kong generated

turnover of CHF 45 million (2010: CHF
46 million).
local currency). Business at Kuoni France was especially hard hit by the
unrest in North Africa. In a consolidating market, the high proportion of
02 Financial Report
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02_01_
K u o n i G R OUP
>>
DIVISION DESTINATIONS: ORGANIC GROWTH AND GTA ACQUISITION
BOOST BUSINESS VOLUMES
Division Destinations consists of

Kuoni Destination Management and
Gullivers Travel Associates (GTA),
which was acquired in the course of
2011. The division generated turnover
of CHF 2405 million for the year (2010:
CHF 1017 million), and achieved organic growth (excluding acquisitions
and currency factors) of 13%.
>>
Having posted a sound recovery the previous year, Destination
Management India & South Asia saw its turnover decline 10% to
CHF 72 million in 2011, as a result of currency exchange factors. In local-
For Division Destinations, the prime event of 2011 was the Kuoni Groups
currency terms, the unit raised its turnover 7.7% year-on-year,
acquisition and integration of Gullivers Travel Associates (GTA),
despite the difficult economic conditions in its key European source
which added a further CHF 1346 million to the divisional turnover. If the
markets.
acquisition had been effected as of 1 January 2011, GTA would have

Destination Management Africa raised its annual turnover 3.0% to
added a further CHF 472 million to the divisions turnover for the year.
Business at Division Destinations existing destination management
CHF 57 million. The growth stemmed largely from East Africa, which
operations saw overall positive trends in all regions, though the correspon-
saw a surge in demand for individual travel products and smaller lodges
ding results were muted by adverse currency movements. The division
on various safari tours. The stronger business here offsets the currency-
posted turnover for the year of CHF 1059 million, a 4.2% increase on its
related declines in business volumes in South Africa and Namibia, the
2010 equivalent.
units two further regions.
Destination Management Europe, the divisions largest constituent
2011 business at Destination Management Asia-Pacific was severely
unit, raised its turnover 6.7% to CHF 494 million, with the Far East
affected by the flooding in Thailand, Vietnam, Cambodia and Australia.
source markets showing particularly strong growth. This, together with
Despite these setbacks, however, the annual turnover of CHF 88 million
the Kuoni Connect business-to-business hotel database launched in
was a 4.7% improvement on the previous year net of currency factors.
2009, helped offset the slump in volumes from Japan following the tsunami
disaster and the subsequent nuclear power plant problems.
Kuonis GROSS PROFIT SUBSTANTIALLY INCREASED,
BUT ACQUISITIONS PROMPT DECLINE IN GROSS PROFIT MARGIN
The strongest organic growth within the division was seen at Desti-
nation Management Middle-East, which increased its turnover from the
Kuoni achieved a gross profit for 2011 of CHF 1026 million the first
CHF 116 million of 2010 to CHF 140 million. The higher business volume
time the company has exceeded the CHF 1 billion threshold in its
was driven by greater demand for individual travel products and by the
corporate history. The result is a 18% improvement on the previous year.
previous years acquisition of the Gulf Dunes and Reem Tours companies.
Acquisitions accounted for 23% of the gross profit growth, while

currency movements depressed gross profit by 8.9%.
MICE stands for meetings, incentives,

conferences and events. Kuonis MICE
business organises conferences, congresses and trade fairs of all kinds
for companies and other institutions,
along with incentive travel arrangements that form part of employees
bonus schemes.
Destination Management USA generated turnover of CHF 215 mil-
lion for the year. With the US dollar losing almost 15% of its value,
the units Swiss-franc turnover volume was broadly in line with prior-year
levels in Swiss francs terms. The volume growth in local-currency
terms was due primarily to rising turnover from Kuoni Connect and to
strong growth in the MICE sector.
02 Financial Report
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02_01_
K u o n i G R OUP
>>
Gross Profit for individual markets

(CHF million)
2010
2011
>>
400
400
350
350
300
300
250
250
200
200
150
150
100
100
50
50
0
0
366
saw a slight increase in its gross profit margin after raising the directsales share of its UK business. In Southern Europe, the new sales offices in
France and Spain had a similarly beneficial effect. Kuoni Switzerland
further improved its gross profit margin, too, thanks to the positive effects
201
182
172
101
168
166
185
164
of realigning the product mix and achieving better capacity utilisations

(also at its specialist operators). The margins at Kuoni Asia declined,
owing largely to higher direct costs in the tour operating segment. Over-
87
57
all gross profit margin for Kuoni Destination Management remained
50
at its 2010 level. The higher margins achieved through the sizeable increase
Scandinavia
UK &
Benelux
Division
Northern Region
Switzerland
Southern
Europe
Division
Southern Region
Asia
Destinations
Division
Destinations
The Kuoni Group posted a gross profit margin for 2011 of 20.1%.
The decline from the prior-year level of 21.9% is due to the acquisitions
in demand in the Europe target market were offset by margin declines

at other destinations and the adverse impact (in margin terms) of GTAs
acquisition.
SUBSTANTIALLY-INCREASED EBIT RESULT DESPITE ONE-OFF GTA
ACQUISITION COSTS
effected in the course of 2011. Gullivers Travel Associates (GTA), the

biggest of these, had a particularly strong impact on gross profit margin
Having achieved both organic and (in particular) acquisition-related
for the year, since the company operates a highly automated large-
business growth in the course of the year, the Kuoni Group saw its
volume business with substantially lower margins than those of Kuonis
nominal operating costs increase in 2011 over their prior-year levels.
traditional activities. In organic terms, Kuoni slightly increased its
At the same time, however, operating cost efficiency was further im-
gross profit margin, thanks largely to the expansion of VFS Globals con-
proved through a range of actions that included optimising and auto
sular services business.
mating various business processes.
Gross profit margin trends showed wide variations from unit to unit
The 2011 income statement includes non-recurring costs of the
and within the Groups various business segments. The Scandinavian
acquisition and integration of Gullivers Travel Associates (GTA), which
leisure travel business faced sizeable flight overcapacities attributable at
amounted to CHF 11.3 million and CHF 8.9 million respectively.
least in part to strong expansions among low-cost carriers. Regional
The investment and cost-reduction programme initiated in 2009 was
gross profit margin was also dented by the need to repatriate vacationers
concluded as planned at the end of 2011. The costs of the programme
following the suspension in spring of all flights to North Africa. Gross
amounted to CHF 36 million (compared to CHF 40 million for 2010).
profit margin for Kuonis Russian activities was tangibly increased
A total of CHF 106 million was spent on the programme over its three-
following the abandonment of the high-risk charter business in favour of
year duration.
As part of its groupwide investment

and cost-reduction programme, Kuoni has taken action to accelerate its
transformation process and enhance
its infrastructure, with a special emphasis on expanding and refining its
market- and customer-focused distribution channels (e-business and its
own sales outlets).
a stronger focus on individual travel arrangements. The Playitas sports

Average Kuoni Group workforce numbers rose 26% in 2011, from
and family resort on Fuerteventura also achieved a much-improved gross
profit margin, thanks in particular to the higher occupancies recorded
87 72 to 11048 full-time equivalents. The increase was due largely to
following completion of the hotels refurbishment. Kuoni UK & Benelux
the acquisition of Gullivers Travel Associates (GTA), the strong growth in
02 Financial Report
146 | 147
Kuonis workforce (full-time equivalents) was at 12104 as per end of the

year (2010: 9048).
02_01_
K u o n i G R OUP
>>
>>
the Groups Asian business and the further expansion of VFS Global and
its activities.
EBIT net of the costs of the investment

and cost-reduction programme, the
planned amortisation of acquisitionrelated intangible assets and the oneoff costs of acquiring and integrating
GTA) amounted to CHF 168.9 million
(2010: CHF 127.1 million).
As a result of the acquisition-driven increase in turnover and the
organic growth at Division Destinations and in Asia, the Kuoni Group

substantially raised its earnings before interest and taxes (EBIT)
result for 2011. Despite the one-off costs of acquiring and integrating GTA,
the CHF 74.2 million EBIT recorded for the year was a CHF 15.8 million
or 27% improvement on the CHF 58.4 million of 2010.
60.0
60
50.0
50
40.0
40
30.0
30
20.0
20
10.0
10
0.0
0
-10.0
-10
-20.0
-20
48.6
43.9
As in previous years, all three divisions made a positive contribution
21.2
8.2
8.3
2.9
8.1
4.4
UK &
Benelux
Division
Northern Region
to the overall EBIT achieved. The declines in all key foreign currencies
2010
2011
28.5
Scandinavia
EBIT was raised 28% by organic

growth. The declines in the exchange
rates of all relevant foreign currencies
against the Swiss franc eroded 18% or
CHF 10 million from the EBIT figure.
Acquisitions had a 17% positive impact
on the EBIT result.
47.6
42.2
Group EBIT by market/division

(CHF million)
Switzerland
8.9
Southern
Europe
Division
Southern Region
Asia
Destinations
Division
Destinations
against the Swiss franc in the course of 2011 did, however, have a tangible
effect on the consolidated EBIT result. The acquisition of Gullivers Travel
FURTHER IMPROVEMENT IN NET GROUP RESULT
Associates (GTA) made a positive impact in EBIT terms; and Kuonis

Asian activities and almost all the units within Division Destinations
The net group result amounted to CHF 33.3 million. The increase on the
substantially improved their earnings performances. With declining
prior year was driven by the strong improvement in consolidated
volumes in the European tour operating business, Kuoni Scandinavia, UK
EBIT and an improved financial result. Tax expense was higher, however,
& Benelux, Switzerland and Southern Europe saw year-on-year declines
owing to the increase in operating profit.
in their EBIT contributions.
Earnings before interest and taxes

(EBIT) (CHF million)
lion, a tangible improvement on the CHF 18 million of 2010. This
200
200
175
175
150
150
125
125
100
100
75
75
50
50
25
25
0
0
The Kuoni Group reported a net financial result of CHF 9.4 mil-
20.2
35.7
148.7
is due largely to the fact that the prior-year result was more strongly
168.9
influenced by non-operational foreign exchange differences and
In accordance with international accounting principles, goodwill is not

amortised. It is, however, subjected annually to an impairment test to determine its current value.
by underlying profits and losses deriving from the valuation of longterm balance-sheet items. The prior-year result also included one-
38.8
time costs of CHF 3.1 million incurred through the attempts to acquire
74.2
ET-china. Interest expense in 2011 was substantially higher, owing

primarily to financing costs associated with the Gullivers Travel Associates (GTA) acquisition.
EBIT
Reported
Amortisation
IFRS 3
Investment
Programme
Underlying
EBIT
Acquisition
& Integration
Costs GTA
Tax expense amounted to CHF 31 million (2010: CHF 17 million). The
average weighted tax rate was higher than the long-term average,
because the mix of different tax rates for profit and loss results had a net
upward effect on the tax rate as a whole. The fact that acquisition
02 Financial Report
148 | 149
02_01_
K u o n i G R OUP
>>
>>
costs could not be used for tax reduction purposes also impacted
and Southern Europe; and the further expansion of VFS Globals activities
negatively on the tax rate for the year.
entailed additional tangible-asset investments. The capital spending

effected under the groupwide investment and cost-reduction programme
Earnings per registered share B amounted to CHF 9.22 (2010:
was substantially lower than in 2010.
CHF 7.43). The Board of Directors will recommend to the Annual General
The Kuoni Group held cash and cash equivalents of CHF 376 mil-
Meeting of Shareholders of 17 April 2012 that the profit for the year be
partly distributed in the form of a withholding tax-free appropriation of
lion at the end of 2011, a decline of some CHF 300 million from
the newly-established capital contribution reserve. The amount paid
their prior-year level. Cash flow from operating activities decreased
should also comply with the broad parameters of the Kuoni Groups
to CHF 101 million and includes a one-off negative seasonal effect
long-term profit distribution policy. The Board of Directors will therefore
deriving from the acquisition of Gullivers Travel Associates (GTA).
ask the Meeting to approve a withholding tax-free distribution of
The fact that the GTA acquisition was financed not only with equity
CHF 0.60 per registered share A and CHF 3.00 per registered share B
and loans but also with available cash has substantially reduced
for the 2011 business year (2010: CHF 0.50/2.50). The payout factor
liquid-fund levels. Advance payments from customers rose from the
resulted at 34% (2010: 31%).
CHF 352 million of 2010 to CHF 373 million. The Group reported a
net debt position of CHF 306 million at year-end (compared to a net
Earnings per registered share B

(CHF)
cash position of CHF 67 million at the end of 2010).
60.0
60
50.0
50
52.7
46.4
40.0
40
30.0
20.0
was conducted in association with the Gullivers Travel Associates (GTA)
30
20
10.0
10
7.4
9.2
2010
2011
0.1
0.0
The statement of comprehensive income includes the net Group result

and all further capitalised value adjustments which are not shown on the
income statement under IFRS provisions. These include market-value adjustments to financial instruments
(CHF 19 million) and currency translation differences (CHF 64 million).
The biggest currency translation differences derived from the translations
of the balance sheets of Kuoni Group
subsidiaries reporting in GBP, EUR
and SEK, of USD-denominated intragroup loans of an equity nature and
of CHF-denominated intragroup loans
to subsidiaries with other functional
currencies.
The Kuoni Groups equity was increased substantially in 2011, from
CHF 562 million to CHF 775 million. A CHF 257 million rights issue
2007
2008
2009
The effective capital increase, net of

costs and the effect of own shares was
at CHF 235 million.
acquisition. The equity funds generated were used to part-finance the

acquisition, with the remainder of the CHF 615 million purchase price
financed via a syndicated credit facility. This increased the companys
debt levels; but the balance sheet equity ratio remains on 31%
Total comprehensive income for 2011 amounted to CHF 12 million
(prior year: CHF 17 million).
SOLID CASH FLOW EVEN AFTER GTA ACQUISITION
a high value for the travel sector that reflects the Kuoni Groups sound
balance-sheet policy.
KUONI ECONOMIC PROFIT FURTHER IMPROVED, DESPITE ONE-OFF
NEGATIVE EFFECTS
Capital spending on tangible and intangible assets in 2011 amounted to

CHF 57 million, and was primarily on IT. The investment amount was
The Kuoni Groups value-based management approach is intended to
a CHF 14 million increase on the CHF 43 million of 2010. A large part of
keep top management aligned as closely as possible to creating sus
the extra spending derived from the acquisition of Gullivers Travel
tainable added value. The central management performance indicator
Associates (GTA) in the course of the year. Kuoni also invested in expand-
here is known as Kuoni Economic Profit or KEP.
ing and refurbishing its branch office networks in the UK, Benelux
02 Financial Report
150 | 151
KEP is calculated from net operating profit after tax (NOPAT) less the
cost of capital invested in operations.
Group-level capital costs have been set
at a sustainable rate weighted average
cost of capital (WACC) of 8.5%. Specific
capital cost rates have also been set for
the Groups individual divisions and
markets that accommodate the corresponding economic and currency
considerations.
02_01_
K u o n i G R OUP
>>
>>
Kuoni has integrated this value-based management approach based
Return on invested capital (ROIC) for 2011 amounted to 3.3%.
on the KEP performance indicator into its entire management process, to
Excluding the costs of the investment and cost-reduction programme,
ensure that it has a sustainable effect. To this end, planning and budget-
ROIC stood at 5.6% for the year.
ing, performance measurement, internal and external communications

and the long-term variable-compensation models applicable to senior
management positions have all been consistently adapted to the sustainable value-creation philosophy.
Kuoni Economic Profit declined in 2011 from CHF 23.3 million to
CHF 47.4 million. The increase in turnover volumes and the improvement in operating earnings performance were more than offset by higher
Kuoni economic profit
(CHF million)
Key Figures (CHF million)

Net operating profit after tax (NOPAT)
Average invested capital
Return on invested capital (ROIC)
Weighted average capital costs (WACC)
ROIC WACC spread
Kuoni Economic Profit (KEP)
Delta KEP
2011
2010
40.9
1233.4
3.30%
8.50%
5.10%
47.4
24.1
40.2
748.2
5.40%
8.50%
3.1%
23.3
40.9
NOPAT divided by the average capital invested in operations gives return

on invested capital (ROIC), which is
compared with WACC for the Kuoni
Group and/or its constituent units to
determine value-adding performance.
capital interest costs. With the acquisition of Gullivers Travel Associates

(GTA), the Kuoni Groups average invested capital increased 65%
from CHF 748 million to CHF 1233 million, prompting a corresponding
sizeable rise in its capital costs.
20.0%
20
15.0%
15
17.0%
18.8%
10.0%
10
5.4%
5.0%
5
80.0
80
60
40.0
40
20.0
20
0.0
0
-20.0
-20
-40.0
-40
-60.0
-60
-80.0
-80
60.0
ROIC (%)
0.0%
0
71.9
60.4
3.3%
0.1%
-5.0%
-5
2007
2008
2009
2010
2011
Based on global focus KUONI EXPECTS to be able to partici-
pate in the growth particularly in Asia in 2012

23.3
47.4
saw a slowdown in business growth and momentum. The numerous crises
64.3
2007
2008
2009
After a relatively favourable first half-year, the last six months of 2011
2010
2011
and events that occurred in the course of the year had a tangible
impact on the global economy, which continues to be plagued by sizeable
uncertainty and offers only cloudy prospects for the immediate future.
Based on the most recent prognoses available, the year is likely to see
further weak growth in global GDP terms. Economic growth in Europe is
expected to feel the pinch of the financial policies now being implemented
The International Monetary Fund

(IMF) forecasts global economic
growth of 4.0% for 2012 (source: IMF
World Economic Outlook, September
2011) the same level as is expected
for 2011. In making its projection, the
IMF expects the substantial recovery
in Japan (in particular) and a slight
economic recovery in the USA to offset the decline in Europes economic
momentum.
in response to the debt crisis. Growth rates projected for 2012 in emer
ging economies are likely to be slightly below prior year, though these
nations should continue to serve as a powerful motor for further global
economic expansion.
02 Financial Report
152 | 153
02_01_
K u o n i G R OUP
>>
For the tourist sector, the United Nations World Tourism Organiza-
>>
6000
6000
tion (UNWTO) expects further growth in global international tourism,
5000
though at more modest rates. The UNWTO is currently projecting growth
4 000
of 3% to 4% for 2012 as a whole (source: UNWTO, January 2012).
3000
5000
4699
5111
4 855
4000
3894
3984
2009
2010
Turnover
(CHF million)
3000
2000
2000
Continuing economic growth is leading to a further increase in
standards of living, especially in Asian source markets, and this is having
1000
1000
0
a positive effect on Kuoni Groups relevant business activities. By
2007
2008
2011
contrast, the effects of the European debt crisis, including the effect on
consumer sentiment in the European tour operating sector, are still
hard to predict. Based on the latest trading figures for the first weeks of
the current year, Kuoni is confident about 2012. The further expansion
200.0
200
through the acquisition of Gullivers Travel Associates (GTA) of the Kuoni
150.0
150
Groups position particularly in the Asian market will make a positive
100.0
100
contribution to the development of the Kuoni Group. The integration of

GTA and the adoption of the new group structure will be further pursued
in 2012.
139.5 135.7
150.4 151.0
50.0
50
15.1
0.0
0
1.6
EBIT
Net result
74.2
58.4
23.2
33.3
-50.0
-50
2007
EBIT and net result

(CHF million)
2008
2009
2010
2011
Kuoni will continue to pursue its present growth strategy. Kuoni
aims to increase its business volumes at rates that are above the general
market average, through a combination of targeted acquisitions and
its own organic growth. In doing so, and by continuously enhancing its
business processes, Kuoni will ensure further earnings improvements.
Kuoni will also remain true to its strategy of low vertical integration. The
Group will continue to focus on its core travel competence, with a
particular strong positioning in growth markets, in Destination Management services and in online business. By offering a broadly-based
portfolio of services that are closely tailored to individual needs, by
selectively promoting and developing contemporary sales channels and
by practising strict cost management, Kuoni aims to ensure that it
continues to create added financial value.
02 Financial Report
154 | 155
Remote places
within reach.
fig. 1:
Blossoming season of the rapeseed fields between limestone hills in Luoping in the east of the province of Yunnan.
156 | 157
02_02_
Five-Year Summary
of Key Data
K u o n i G R OUP
CHF million
2011
2010
2009
2008
2007
CHF million
2011
2010
2009
2008
2007
Turnover
Total Northern Region
Scandinavia
UK & Benelux
Total Southern Region
Switzerland
Southern Europe
Asia
Destinations
Corporate
5111
1465
958
507
1386
712
305
370
2405
0
3984
1640
1045
595
1468
797
355
316
1017
0
3894
1664
1012
652
1462
821
374
267
894
0
4855
2017
1193
824
1871
1028
539
304
1101
0
4699
1970
1004
966
1856
1001
558
297
1009
0
Cash flow (net cash from operating activities)

Per registered share A
Per registered share B
5.87
29.33
8.15
40.76
3.26
16.31
7.60
38.01
17.62
88.11
Net result
1.84
9.22
1.49
7.43
0.02
0.08
10.54
52.68
9.27
46.36
Equity
44.43
222.14
38.57
192.84
40.67
203.37
41.74
208.70
41.33
206.67
EBIT
Scandinavia
UK & Benelux
Switzerland
Southern Europe
Asia
Destinations
Corporate
74.2
31.4
28.5
2.9
47.8
8.1
8.9
48.6
47.6
52.6
58.4
52.1
43.9
8.2
46.1
8.3
4.4
42.2
21.2
61.0
15.1
14.5
5.3
9.2
33.5
1.5
6.1
25.9
15.5
48.4
150.4
61.2
29.0
32.2
80.8
39.4
18.9
22.5
38.5
30.1
139.5
84.3
38.9
45.4
55.9
19.7
20.1
16.1
32.0
32.7
Dividend
0.6045
3.0045
0.505
2.505
1.60
8.00
2.00
10.00
3.40
17.00
119952006
7235672
22956088
28631310
48737640
Payout ratio
34.2%
31.2%
>100%
19.0%
35.9%
33.3
23.2
1.6
151.0
135.7
Yield (at year end rate)
1.33%
0.55%
2.29%
2.78%
2.88%
57.2
92.8
101.1
306.4
43.3
54.9
117.0
66.6
44.2
52.4
46.7
59.3
59.5
49.2
108.7
88.0
53.2
56.3
256.9
88.8
Registered share A (Nominal value CHF 0.20)

Number outstanding
Number entitled to dividend
Stock market prices
1249500
1249500
not listed
952000
952000
not listed
952000
952000
not listed
952000
952000
not listed
985600
985600
not listed
Non-current assets
Current assets
Equity
Equity ratio
Non-current liabilities
Current liabilities
Total assets
1576
923
775
31.0%
415
1309
2499
773
1048
562
30.9%
302
957
1821
827
1025
592
32.0%
319
941
1852
809
919
606
35.1%
98
1024
1728
795
1142
607
31.3%
115
1216
1937
Registered share B (Nominal value CHF 1.00)

Number outstanding
Number entitled to dividend
Stock market prices high
low
at year-end
Annual trading volume in CHF million
3748500
35516387
439
213
225
839
2856000
2682529
459
294
454
787
2856000
2679111
387
253
349
697
2856000
2672731
616
290
360
1447
2956800
2669800
784
517
590
1931
Invested capital1
Return on Invested Capital (ROIC)2
Kuoni Economic Profit (KEP)3
1233
3.3%
47.4
748
5.4%
23.3
760
0.1%
64.3
701
18.8%
71.9
711
17.0%
60.4
Stock market capitalisation

as at 31 December in CHF million
900
1383
1063
1097
1861
Average number of personnel (FTE)

Scandinavia
UK & Benelux
Switzerland
Southern Europe
Asia
Destinations
Corporate
11048
1683
915
768
5329
1107
545
3677
3867
169
8772
1693
984
709
4692
1166
503
3023
2262
125
9070
1757
1021
736
4914
1190
546
3178
2264
135
9797
1878
1122
756
5557
1426
718
3413
2256
106
8826
1725
992
733
5052
1434
789
2829
1950
99
Net result
Investments in tangible fixed assets
and intangible assets
Depreciation and amortisation
Cash flow (net cash from operating activities)
Net cash
02 Financial Report
Total dividend payout

Nominal value reduction
The data presented are based on the consolidated

financial statements. Any changes made to Kuoni
Group accounting policies as a result of changes to
International Financial Reporting Standards are
not retroactively applied.
2 Return on Invested Capital (ROIC) is defined as

net operating profit after tax (NOPAT) as a proportion
of average invested capital. NOPAT is defined as
earnings before interest and taxes (EBIT) less income
dependent taxes
1 Invested capital is the average annual total of all

net current assets, tangible fixed assets, goodwill
actually paid (less any impairments effected) and
other net assets (excluding interest-bearing assets
and liabilities). In the case of GTA, invested capital
was calculated for the full 12-month period: the
corresponding reduction in view of GTAs shorter
eight-month ownership period (i.e. from 1 May 2011)
was effected via capital costs (see footnote 3).
3 Kuoni Economic Profit or KEP is defined as net

operating profit after tax (NOPAT) less the cost of
capital invested in operations. The cost of capital
invested in operations is determined by multiplying
the average invested capital by the weighted average
cost of capital (WACC) of 8.50% of the Kuoni Group.
The cost of capital invested for GTA was calculated
for the eight-month period following its acquisition
on 1 May 2011.
158 | 159
4 Proposal of the Board of Directors to the General

Meeting of Shareholders on 17 April 2012. Subject
to definitive approval by the General Meeting of
Shareholders.
5 Distribution to shareholders of a withholding
tax-free appropriation from the newly created capital
contribution reserve.
6 The company will waive its entitlement to such
payments from the capital contribution reserve for
the treasury shares held on the distribution date
which are reserved for use in its employee share plan.
7 As at 31 December 2011.
Heeding the call

of the great wide open.
fig. 2:
The monsoon-eroded ridges of the Makran Coast along the Indian Ocean in Iran at the Pakistani border.
160 | 161
02_03_
Pro Forma Figures
K u o n i G R OUP
>>
Pro Forma Figures
CHF Mio.
02 Financial Report
2011
2010
2009
2008
2007
Nettoerls
Outbound Europe
Outbound Nordic
Outbound Kuoni Europe
Global Travel Services
Groups
FIT (Fully Independent Traveller)
Emerging Markets & Specialists
Specialists
Emerging Markets
VFS Global
Corporate
5111.3
2098.7
929.5
1169.8
1843.8
788.9
1070.1
1286.0
900.4
221.9
176.4
0.0
3983.6
2285.1
978.7
1307.0
489.6
n.a.
n.a.
1323.6
954.6
226.2
156.2
0.0
3893.6
2320.7
957.1
1364.2
415.2
n.a.
n.a.
1264.1
949.6
192.7
129.3
0.0
4855.0
2930.1
1092.1
1838.6
601.1
n.a.
n.a.
1463.5
1067.2
281.3
123.4
0.0
4698.6
2948.5
979.0
1970.9
526.0
n.a.
n.a.
1364.5
1046.3
247.1
74.8
0.0
EBITA
Outbound Europe
Outbound Nordic
Groups
Acquisition and integration cost
Specialists
Emerging Markets
VFS Global
Corporate
113.0
24.4
35.2
10.8
62.1
19.0
63.3
20.2
79.1
35.4
1.8
41.9
52.6
72.2
55.8
55.8
0.0
6.5
n.a.
n.a.
0.0
70.9
38.8
4.3
36.4
61.0
30.3
25.2
21.7
3.5
5.1
n.a.
n.a.
0.0
48.4
37.1
9.7
21.0
48.4
162.8
115.1
45.8
69.3
18.2
n.a.
n.a.
0.0
59.6
52.0
10.6
18.2
30.1
152.0
107.4
42.4
65.0
16.7
n.a.
n.a.
0.0
60.6
46.3
0.5
13.8
32.7
EBIT
Outbound Europe
Outbound Nordic
Groups
Acquisition and integration cost
Specialists
Emerging Markets
VFS Global
Corporate
74.2
20.3
33.9
13.6
36.7
13.4
43.5
20.2
69.8
26.6
1.3
41.9
52.6
58.4
53.0
54.7
1.7
6.1
n.a.
n.a.
0.0
60.3
28.9
5.0
36.4
61.0
15.1
22.4
20.5
1.9
4.9
n.a.
n.a.
0.0
36.2
25.5
10.3
21.0
48.4
150.4
112.6
44.6
68.0
17.8
n.a.
n.a.
0.0
50.1
43.3
11.4
18.2
30.1
139.5
106.0
41.5
64.5
16.7
n.a.
n.a.
0.0
49.5
35.5
0.2
13.8
32.7
162 | 163
In the light
of the unknown.
fig. 3:
The limestone hills along the Li River downstream from Guilin epitomise the beauty of the Chinese landscape.
164 | 165
02_04_
Kuoni grouP
02_04_01_
Statement of financial PoSition
Assets CHF 1 000
Notes
31 Dec 2011
31 Dec 2010
(13)
(14)
(15)
(16)
(17)
(23)
200 799
939 778
347 336
11 562
42 273
34 146
1 575 894
8.0
37.6
13.9
0.5
1.7
1.4
63.1
180 108
383 064
114 160
13 077
42 269
39 861
772 539
9.9
21.0
6.3
0.7
2.3
2.2
42.4
(18)
(19)
(20)
288 861
86 874
366 934
180 349
923 018
11.6
3.5
14.7
7.1
36.9
587 898
86 368
210 094
164 042
1 048 402
32.3
4.8
11.5
9.0
57.6
2 498 912
100.0
1 820 941
100.0
Notes
31 Dec 2011
31 Dec 2010
(21)
(21)
3 998
17 163
779 047
0.2
0.7
31.1
3 046
3 943
554 417
0.2
0.2
30.4
765 882
30.6
553 520
30.4
(21)
8 728
774 610
0.4
31.0
8 874
562 394
0.5
30.9
(22)
(23)
(24)
19 819
97 118
298 068
415 005
0.8
3.9
11.9
16.6
18 208
39 438
243 897
301 543
1.0
2.2
13.4
16.6
(24)
(25)
11 391
306 881
372 718
618 307
1 309 297
0.4
12.3
14.9
24.8
52.4
11 761
234 566
352 006
358 671
957 004
0.6
12.9
19.3
19.7
52.5
Total liabilities
1 724 302
69.0
1 258 547
69.1
Total equity and liabilities
2 498 912
100.0
1 820 941
100.0
Non-current assets
Tangible fixed assets
Goodwill
Other intangible assets
Investments in associates
Other financial assets
Deferred taxes
Total non-current assets
Current assets
Cash and cash equivalents
Time deposits
Accounts receivable / other receivables
Prepaid expenses
Total current assets
Total assets
Equity and liabilities CHF 1 000

Equity
Share capital
Treasury shares
Reserves
Equity attributable to shareholders
of Kuoni Travel Holding Ltd.
Non-controlling interests
Total equity
Liabilities
Provisions
Deferred taxes
Financial debts
Total non-current liabilities
Financial debts
Accounts payable
Advance payments by customers
Accrued expenses
Total current liabilities
02 FinAnciAl RepoRt
Kuoni GRoup
166 | 167
(25)
Kuoni AnnuAl RepoRt # 2011
02_04_02_
02_04_03_
Income Statement
Statement of Comprehensive Income
CHF 1000
Notes
2011
2010
CHF 1000
Turnover
(3/4)
5111325
100
3983645
100.0
Net result
Direct costs
Gross profit
4085654
1025671
79.9
20.1
3110494
873151
78.1
21.9
Other comprehensive income
(3/5)
524675
82560
251443
92807
74186
10.3
1.6
4.9
1.8
1.5
459553
91788
208578
54869
58363
11.5
2.3
5.2
1.4
1.5
6673
16068
64791
0.1
0.3
1.3
4591
22926
40028
0.1
0.6
1.0
31446
33345
0.6
0.7
16850
23178
0.4
0.6
1550
0.0
1863
0.0
31795
0.7
21315
0.6
Personnel expense
Marketing and advertising expense
Other operating expense
Earnings before interest and taxes (EBIT)
(6)
(7)
(8)
(3/9)
Financial income
Financial expense
Result before taxes
(10)
(10)
Income taxes
Net result
(11)
Of which:
Attributable to non-controlling interests
Attributable to shareholders of
Basic earnings per registered share B in CHF
Diluted earnings per registered share B in CHF
(12)
(12)
9.22
9.22
7.43
7.43
Basic earnings per registered share A in CHF

Diluted earnings per registered share A in CHF
(12)
(12)
1.84
1.84
1.49
1.49
02 Financial Report
K u o n i G R OUP
2011
2010
33345
23178
10599
14396
64162
6499
4930
12208
35285
1893
Total other comprehensive income
45666
40670
Total comprehensive income
12321
17492
1574
13895
1955
19447
Realised gains or losses from cash flow hedges

transferred to income statement
Recognised gains or losses from cash flow hedges
Translation differences
Income taxes on other comprehensive income
Of which:
Attributable to non-controlling interests
Attributable to shareholders of Kuoni Travel Holding Ltd.
168 | 169
Notes
(21)
(21)
(21)
(21)
02_04_04_
02_04_05_
Statement of Changes in Equity
CHF 1000
Equity as at 1 January 2010
Share
capital
3046
Treasury
shares
6775
Capital
reserves
196120
Net result
Other comprehensive income:
Realised gains or losses
from cash flow hedges
transferred to income
statement
Recognised gains or losses
Income taxes on other
comprehensive income
Dividends
Sale of treasury shares
Use of treasury shares
Changes in ownership interests
Equity as at
31 December 2010
Retained
earnings
562567
Other
reserves1
172293
21315
21315
3046
3943
197123
570349
Net result
Other comprehensive income:
Realised gains or losses
transferred to income
statement
Recognised gains or losses
Income taxes on other
comprehensive income
31795
Dividends
Capital increase
Equity as at
31 December 2011
7236
470
9857
31795
Total
equity
21315
1863
23178
12208
35377
1893
40762
1893
19447
213055
Noncontrolling
interests
591732
12208
35377
9545
122
CHF 1000
9067
4930
1003
Statement of Cash Flows
582665
4930
22956
140
2692
Total equity
of Kuoni
shareholders
4930
92
12208
35285
1955
1893
17492
22956
1143
12237
122
1360
788
24316
1143
12237
910
553520
8874
562394
31795
1550
33345
10599
10599
10599
14396
64186
14396
64186
24
14396
64162
6499
45690
6499
13895
1574
6499
12321
2011
2010
33345
92807
5293
1610
23178
54869
1755
14369
26146
2
1001
46487
101125
11934
9863
14371
33773
117008
36035
21157
607591
1889
792
402
629
663459
25414
17930
15230
1907
90756
1958
2522
146859
51032
0
234513
0
1720
7236
276589
5428
1143
0
910
1360
22956
29511
13292
13119
299037
72481
Cash and cash equivalents at beginning of year
587898
660379
Cash and cash equivalents at end of year
288861
587898
Cash flow from operating activities

Net result
Changes in provisions and deferred taxes
Other non-cash expenses and income
Changes in net working capital
Accounts receivable/other receivables
Prepaid expenses
Accounts payable/accrued expenses
Net cash from operating activities (cash flow)
Cash flow from investing activities
Purchase of tangible fixed assets
Purchase of other intangible assets
Acquisition of subsidiaries, net of cash and cash equivalents acquired
Disposal of tangible fixed assets
Increase in time deposits (net)
Investment in associates
Decrease in other financial assets (net)
Net cash used in investing activities
Cash flow from financing activities
Decrease of borrowings (net)
Share capital increase
Dividend to non-controlling interests
Dividend to shareholders of Kuoni Travel Holding Ltd.
Net cash from financing activities
Effects of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
952
3998
550
12670
17163
256088
453211
584581
258745
K u o n i G R OUP
7236
1020
234513
0
1720
765882
8728
8956
1020
234513
0
774610
Notes
(8)
(13)
(15)
(2)
(16)
For further details see notes 28 and 29.
1 For further details see note 21.
02 Financial Report
170 | 171
02_04_06_
K u o n i G R OUP
Accounting Principles
Kuoni Travel Holding Ltd. (the Company) is domiciled in Zurich. The consolidated financial statements for the
year ended 31 December 2011 cover
the Company and all its subsidiaries
(Kuoni Group) and associates. The Company is one of Europes leading tourism
companies, active in the leisure travel
and destination management field. The
consolidated financial statements are
prepared in accordance with International Financial Reporting Standards
(IFRS) and comply with Swiss law.
Basis of Preparation
The consolidated financial statements

are presented in Swiss francs (CHF),
rounded to the nearest thousand. The
consolidated financial statements are
prepared on the historical cost basis
except for derivative financial instruments, financial assets and financial
instruments available for sale, which
are stated at their fair value. Noncurrent assets and discontinued operations held for sale are stated at the
lower of the carrying amount and fair
value less costs to sell.
The preparation of the consolidated
financial statements in conformity
with IFRS requires management to

make judgements, estimates and assumptions that affect the application
of policies and reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these
estimates. Critical judgements made
by management in the application
of IFRS that have a significant effect
on the financial statements and key
sources of estimation uncertainties are
discussed separately. The accounting
policies have been applied consistently
to all periods presented in these consolidated financial statements, with
the exceptions described below.
Adoption of New and
Revised Standards
The Kuoni Group adopted the following new and revised standards and
new interpretations with effect from
1 January 2011:
Revised standards:

IAS 24: Related Party Disclosures

IAS 32: Financial Instruments:
Presentation (classifications of
rights issues)
IAS 27: Consolidated and
Separate Financial Statements
>>
New interpretations:

IFRIC 14: Prepayments of a minimum funding requirement

IFRIC 19: Extinguishing financial
liabilities with equity instruments
improvements to IFRSs (May 2010)
The adoption and application of the

above standards and interpretations
had no effect on these consolidated financial statements.
Future ifrs changes
With the exception of IAS 19, the Kuoni

Group does not expect these new and
revised standards and interpretations
to have any significant effect on its results and financial situation to date.
They will, however, have an impact on
transactions effected on or after 1 January 2012. This applies in particular to:
The amendments to IAS 19 Employee Benefits must be adopted from 1
January 2013. From its corresponding
analyses to date, the Kuoni Group expects such adoption to have the following impact on its consolidated results:
In future, actuarial gains and losses

will be recognised immediately in
Other comprehensive income. The
previous option of deferring such recognition using the corridor approach
will no longer be permitted. Under that
approach, such gains and losses were
shown in results for the period if they
exceeded 10% of the higher of the prior
years fund assets or pension obligations amount. As of 31 December 2011,
unrecognised actuarial losses amounted to CHF 47 million. The adoption
of the amendments to IAS 19 is thus
likely to result in greater volatility in
pension fund assets/liabilities and
consolidated equity.
As a further consequence of the adoption of the amendments to IAS 19, interest on plan assets will no longer
be estimated based on expected asset
returns under current asset allocations. In future, such interest will be
based on the discount rate. The net
periodic pension cost of the Kuoni
Group would have been around CHF
2.7 million higher if the new provisions had been adopted for the 2011
business year.
Effective date
Planned
application
New Standards or Interpretations

IFRS 10 Consolidated Financial Statements
IFRS 11 Joint Arrangements
IFRS 12 Disclosure of Interests in Other Entities
IFRS 13 Fair Value Measurement
IFRS 9 Financial Instruments
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2015
Reporting year 2013

Reporting year 2013
Reporting year 2013
Reporting year 2013
Reporting year 2015
Revisions and amendments of Standards and Interpretations

Deferred Tax: Recovery of Underlying Assets (Amendments to IAS 12)
Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)
IAS 19 Employee Benefits
IAS 28 Investments in Associates and Joint Ventures
Disclosures Netting of Financial Assets (Amendments to IFRS 7)
Netting of Financial Assets and Liabilities (Amendments to IAS 32)
1 January 2012
1 July 2012
1 January 2013
1 January 2013
1 January 2013
1 January 2014
Reporting year 2012

Reporting year 2013
Reporting year 2013
Reporting year 2013
Reporting year 2013
Reporting year 2014
02 Financial Report
Subsidiaries
Subsidiaries are entities controlled

by Kuoni Travel Holding Ltd. Control
is the power to directly or indirectly
govern the financial and operating
policies of an entity so as to obtain
benefits from its activities. This is the
case where the Group holds more than
50% of the voting rights of an entity
or where the Group has been granted
management of an entity contractually
or is exercising control by other means.
Subsidiaries acquired in the course of
the accounting year are consolidated
from the date the control effectively
commences. Subsidiaries sold in the
course of the accounting year are deconsolidated as of the date on which
control ceases.
172 | 173
The full consolidation method is used,

under which all assets, liabilities, income and expenses of the subsidiaries are included in the consolidated
financial statements. The share of net
assets and net profit or loss attributable
to minority shareholders is presented
separately as non-controlling interest on the consolidated statement of
financial position, and separately as
non-controlling interest in the consolidated income statement.
Associates
Associates are entities in which the

Group is able to exercise significant
influence, but not control, over the financial and operating policies. The
consolidated financial statements include the Groups share of the total recognised gains and losses of associates
on an equity accounting basis, from
the date significant influence commences until the date it ceases. When
the Groups share of losses exceeds
the carrying amount of the associate,
the carrying amount is reduced to nil
and the recognition of further losses
is discontinued except to the extent
that the Group has incurred further
obligations in respect of the associate.
Intragroup Transactions
and Balances
All intragroup transactions and balances and any unrealised gains and
losses or income and expenses arising
from intragroup transactions are eliminated in the consolidation process.
Foreign Currency
Transactions
Transactions in foreign currencies are

translated at the exchange rate on the
date of the transaction. Monetary assets and liabilities in foreign currencies are translated at year-end rates.
Non-monetary assets and liabilities
in foreign currencies that are stated at
historical cost are translated at the exchange rate on the date of the transaction. Non-monetary assets and liabilities in foreign currencies that are stated
at fair value are translated at the exchange rate at the date the values were
determined. Foreign exchange gains
or losses arising from translation are
recognised in the income statement.
Consolidation of Foreign
Subsidiaries
The consolidated financial statements

are presented in Swiss francs (CHF).
The financial statements of foreign
subsidiaries are prepared in their functional currency. Assets and liabilities
(including goodwill and fair-value
adjustments) of foreign subsidiaries
are translated to CHF at year-end exchange rates. Revenue, expenses and
cash flow amounts are translated at
weighted average exchange rates. Foreign exchange differences arising from
the translation of foreign subsidiaries
are recognised directly in equity as a
translation difference.
Turnover
The Group renders a wide range of travel services. The revenue from rendering these services is recognised in the
income statement at the time when the
significant risks and rewards are transferred to the customer. This is generally the case on the date of departure
or, in the case of destination management activities, on the date of arrival.
Turnover comprises net sales revenues
from the tour operating business (after
deduction of sales taxes, value added
tax, discounts and commissions) as
well as commissions received from leisure travel retailing.
Employee Benefits
Wages, salaries, social security contributions, paid vacation and sickness-related absences, bonuses and
02_04_06_
K u o n i G R OUP
>>
non-monetary benefits are allocated

to and shown in the year in which the
employee provided the service concerned for the Kuoni Group. Where
Kuoni provides long-term employee
benefits, the costs are accrued to match
the service to be provided by the employee, and the liabilities of the Kuoni
Group are discounted to take account
of the time value of money where the
effects are significant.
Share-Based Compensation
Certain employees participate in

share-based employee participation
plans, i.e. programmes based on equity
instruments of Kuoni Travel Holding
Ltd. For all share-based employee compensation, the current market value of
the shares concerned is determined
on the date the entitlement is granted,
and is debited to personnel expense on
the corresponding income statements
throughout the period until the entitlement is awarded.
With all employee participation plans
under which equity instruments are
awarded, the compensation paid and
any further amounts resulting from
the exercising of such benefits are
shown as increases in equity. In the
case of cash-based employee participation plans, the compensation awarded
is shown as a liability at its fair value
on the balance sheet date.
Retirement Benefits
Def ined contribution plans: Switzerland, the United Kingdom, Italy,

France, Sweden, Denmark, Norway, the
Netherlands, Austria, the USA, India
and Japan.
The plans are funded by the Groups
subsidiaries (employer) and the employees. Employers contributions to
defined contribution plans are recognised as an expense in the income
statement when incurred. The Groups
net obligation in respect of defined
benefit pension plans is calculated
separately for each plan by qualified
actuaries using the projected unit credit method. To the extent that any cumulative unrecognised actuarial gain or
loss of a plan exceeds 10% of the greater
of the present value of the defined benefit obligation and the fair value of plan
assets, that portion is recognised in the
income statement over the expected average remaining working lives of the
employees participating in the plan.
Where actuarial calculations result
in a surplus, this is only recognised
to the extent that the Group derives a
future economic benefit in the form
of a reduction in plan contributions
or a refund.
Due to local regulations, the Group
maintains certain unfunded retirement benefit plans. The present value
of the defined benefit obligation of unfunded plans is recognised as a provision for employee benefits.
State retirement benefits are provided in

the majority of countries in which the
Kuoni Group operates. The Group has
additionally set up a number of legally
independent retirement benefit plans
or insurance schemes in the following
countries, which are generally funded
by the employee and the employer:
Defined benefit plans: Switzerland, the
United Kingdom, Netherlands and
Norway.
Operating Lease Payments
Leases where all the major risks and

rewards of ownership are effectively
retained by the lessor are classified as
operating leases. Payments made under
operating leases (net of any incentives
received from the lessor) are charged
to the income statement on a straightline basis over the period of the lease.
Details of the treatment of finance leases are provided under the accounting
policy for tangible fixed assets.
02 Financial Report
>>
Income Taxes
Income tax on the profit or loss for the

year comprises current and deferred
taxes, based on the local tax rates expected to apply for each Group company. Income tax is recognised in the
income statement except to the extent
that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current income tax is the expected tax
payable on the taxable income for the
year, calculated using tax rates enacted
or substantially enacted at the balance
sheet date, and any adjustment to tax
payable in respect of previous years.
Deferred tax is provided using the
statement of financial position liability method, providing for temporary differences between the carrying
amounts of assets and liabilities for
financial reporting purposes and the
amounts used for taxation purposes.
Temporary differences relating to investments in subsidiaries are not provided for to the extent that they will
probably not reverse in the foreseeable future. Deferred tax liabilities on
undistributed profits of subsidiaries
are recognised, unless dividend payments to the ultimate Group holding
company are not planned for the foreseeable future. The amount of deferred
tax recognised is based on the expected
manner of realisation or settlement
of the carrying amount of assets and
liabilities, using tax rates enacted or
substantially enacted at the balance
sheet date.
A deferred tax asset is recognised only
to the extent that it is probable that future taxable profits will be available
against which the asset can be utilised.
Tangible Fixed Assets
Tangible fixed assets are stated at cost

less accumulated depreciation and
impairment losses. Where an item of

tangible fixed assets comprises major
components having different useful
lives, they are accounted for as separate
tangible fixed asset items. The capitalisation of subsequent costs is evaluated
under the general recognition principle for such assets at the time they are
incurred.
Long-term leases of tangible fixed assets where the Group has substantially
all the risks and rewards of ownership
are classified as finance leases. Tangible fixed assets acquired by way of
finance lease are stated at an amount
equal to the lower of their fair value
and the present value of the minimum
lease payments at the inception of the
lease, less accumulated depreciation
and any impairment losses. The related
liabilities are recognised as non-current or current liabilities. The interest
expense component of finance lease
payments is recognised in the income
statement using the effective interest
rate method.
Depreciation is charged to the income
statement on a straight-line basis over
the estimated useful lives of the items
of tangible fixed assets (owned assets
and assets under finance leases and/or
components thereof) concerned. Land
is not depreciated. The estimated useful lives are as follows:
Buildings
Other tangible fixed assets:
Fixtures and equipment
Fixtures and equipment
at point of sale
IT hardware, office
equipment and vehicles
Personal computers and
office machines
Years
2050
The Group does not have any intangible assets with indefinite useful lives,
except for goodwill.
8
5
3
Intangible assets comprise software,

licences, trademark rights and similar
Goodwill
All business combinations are accounted for by applying the acquisition

method. Goodwill arising from the acquisition of a subsidiary represents the
excess of the cost of the acquisition
over the fair value of the net identifiable assets acquired, and is allocated
to cash-generating units. In respect
of associates, the carrying amount of
goodwill is included in the carrying
amount of the investment in the associate. Purchase price adjustments
prior to 1 January 2010 are still effected
via goodwill.
Goodwill is stated at cost less accumulated impairment losses. Goodwill is
tested at least annually for impairment.
10
Intangible Assets
174 | 175
rights acquired from third parties or

in a business combination. Intangible
assets acquired in a business combination are recognised separately from
goodwill if they are subject to contractual or legal rights or are separately
transferable and their fair value can
be reliably estimated. Intangible assets are stated at cost less accumulated
depreciation and impairment losses.
They are depreciated on a straight-line
basis over their expected useful lives
of three to ten years.
Financial Investments
The Group has investments classified

as available for-sale which include minority investments in listed and nonlisted companies.
Available-for-sale investments are stated at fair value, with any resultant gain
or loss recognised directly in equity,
except for impairment losses and, in
the case of debt securities, foreign ex
change gains and losses. When these
investments are derecognised, the cumulative gain or loss previously recognised directly in equity is recognised
in the income statement.
The fair value of listed available-forsale investments is their quoted bid
price at the balance sheet date. The fair
value of unlisted investments is estimated using valuation techniques.
Time deposits (with a maturity exceeding 12 months from the date of
acquisition), long-term loans and other
long-term receivables are stated at their
amortised cost less impairment losses.
Interest is recognised using the effective interest rate method. The Group
does not have any instruments classified as at fair value through profit and
loss (trading), with the exception of
derivative financial instruments (see
the accounting policy on Derivative
Financial Instruments).
Time Deposits, Loans
and Accounts Receivable
Time deposits (with a maturity bet

ween 3 and 12months from the date
of acquisition), short-term loans and
accounts receivable are stated at their
cost less impairment losses. Impairment losses are recognised on an individual basis, or on a portfolio basis
(for accounts receivable), where there
is objective evidence that impairment
losses have been incurred. The allowance on bad debt and the receivable is
written off if there are clear indicators
(such as a certificate of unpaid debts)
that the receivable is not collectable.
Cash and Cash Equivalents
Cash and cash equivalents contain

cash balances, postal giro accounts
and bank current accounts as well as
time deposits and money market investments with a maturity not exceeding 3 months from the date of acquisition.
02_04_06_
K u o n i G R OUP
>>
Impairment
The carrying amounts of the Groups

assets (other than deferred tax assets
and pension assets, for which separate accounting policies apply) are
reviewed at each balance sheet date
to determine whether there is any indication of impairment. If any such
indication exists, the assets recoverable amount is estimated. Goodwill is
tested at least annually for impairment.
An impairment loss is recognised in
the income statement whenever the
carrying amount of an asset exceeds
its recoverable amount. The recoverable amount of loans and other receivables carried at amortised cost is calculated as the present value of estimated
future cash flows, discounted at the
original effective interest rate inherent
in the asset. Receivables with a short
duration carried at cost are not discounted. The recoverable amount of
available-for-sale securities is their fair
value. The recoverable amount of other
assets is the greater of their fair value
less costs to sell and their value in use.
An impairment loss in respect of goodwill is not reversed. An impairment
loss in respect of financial investments
classified as available-for-sale is reversed if there is a subsequent increase
in the recoverable amount that can be
related objectively to an event occurring after the impairment loss was recognised. In respect of other assets, an
impairment loss is reversed if there has
been a change in the estimates used
to determine the recoverable amount.
Reversals of impairment losses are recognised in the income statement, with
the exception of reversals of impairment losses on equity investments classified as available-for-sale.
Treasury Shares
When the Company or its subsidiaries

purchase the Companys own shares,
the consideration paid, including any

directly attributable costs, is presented
as treasury shares and deducted from
equity. Where such shares are subsequently sold or reissued, any consideration received is included in equity.
Financial Debt
>>
that are unrecognised because the future outflow of resources is not probable or the amount concerned cannot
be reliably determined. Contingent
liabilities are not recognised in the
statement of financial position, but
are disclosed.
Financial debt is initially recognised

at fair value, less attributable transaction costs. Thereafter, financial debt is
stated at amortised cost using the effective interest rate method, with any difference between cost and redemption
value being recognised in the income
statement under financial expense
over the borrowing period.
Provisions
A provision is recognised in the statement of financial position when the

Group has a present legal or constructive obligation as a result of a
past event, when it is probable that an
outflow of economic benefits will be
required to settle the obligation and
when a reliable estimate can be made
of the amount of the obligation. If the
effect is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that
reflects current market assessments
of the time value of money and, where
appropriate, the risks specific to the
liability. A provision for onerous contracts is recognised when the expected benefits to be derived by the Group
from a contract are lower than the unavoidable cost of meeting its obligations
under the contract.
Contingent Liabilities
Contingent liabilities are possible obligations arising from past events whose
existence will be confirmed only by
the occurrence or non-occurrence of
one or more uncertain future events
not wholly within the Groups control.
They may also be present obligations
02 Financial Report
Accounts Payable
Accounts payable are stated at cost.

Derivative Financial
Instruments
The Group uses derivative financial instruments primarily to hedge its exposure to foreign exchange risks arising
from operational, financing and investment activities. The Group largely
uses forward-exchange contracts, currency options and aviation fuel options
for this purpose. In accordance with
internal Group accounting principles,
derivative financial instruments are
not used for trading purposes. However, derivatives used for hedging purposes that do not qualify as hedge accounting are accounted for as trading
instruments.
All derivative financial instruments
are initially recognised at fair value.
Subsequent to initial recognition, derivative financial instruments are stated at fair value. Derivative financial
instruments with a positive fair value
are included in acc ounts receivable,
while those with negative fair value
are included in accounts payable. Any
gains or losses on the remeasurement
of the fair value of derivative financial instruments that do not qualify
for hedge accounting are recognised
immediately in the income statement.
The fair value of the instruments used
is the calculated amount that the
Group would receive or pay to terminate the contracts at the balance sheet
date, based on quotes from independent counterparties.
Hedging
Cash Flow Hedges

Where a derivative financial instrument is designated as a foreign currency hedge of the variability in cash
flows of a firm commitment or a highly
probable forecasted transaction, the
effective part of any gain or loss on the
derivative financial instrument is recognised directly in equity. Contracts
of this kind are classified as cash flow
hedges.
When the firm commitment or forecast transaction results in the recognition of a non-financial asset or liability,
the cumulative gain or loss is removed
from equity and included in the initial cost of the non-financial asset or
liability. Otherwise, the cumulative
gain or loss is removed from equity and
recognised in the income statement at
the same time as the hedged transaction. The ineffective part of any gain
or loss is recognised immediately in
the income statement.
When a hedging instrument expires
or is sold, terminated or exercised, or
the entity revokes the designation of
the hedge relationship but the hedged
forecast transaction is still expected
to occur, the cumulative gain or loss at
that point remains in equity and is recognised in accordance with the above
policy when the transaction occurs.
If the hedged transaction is no longer
expected to take place, the cumulative
unrealised gain or loss recognised in
equity is recognised immediately in
the income statement.
hedge accounting is applied, and any

gain or loss on the hedging instrument
is recognised in the income statement.
Related foreign exchange gains and
losses are also recognised in the income statement as incurred.
Non-Current Assets Held
for Sale and Discontinued
Operations
Non-current assets (or disposal groups)

are classified as held for sale if their
carrying amount will be recovered
principally through a sale transaction
rather than from continuing use. The
asset (or disposal group) must be available for immediate sale in its present
condition and the sale must be highly
probable. Immediately before reclassification as held for sale, the measurement of the assets (and all assets
and liabilities in a disposal group) is
brought up to date in accordance with
the applicable accounting standards.
On initial reclassification as held for
sale, non-current assets and disposal
groups are recognised at the lower of
their carrying amount or fair value less
costs to sell. Any impairment losses on
initial classification as held for sale are
recognised in the income statement.
A discontinued operation is a component of the Groups business that represents a separate major line of business
or a geographical area of operations,
or is a subsidiary acquired exclusively
with a view to resale. Classification as
a discontinued operation occurs upon
disposal or when the operation meets
the criteria to be reclassified as held
for sale, if earlier.
Hedging of Monetary Assets

and Liabilities
Where a derivative financial instrument is used to economically hedge
the foreign exchange exposure of a recognised monetary asset or liability, no
176 | 177
Segment Reporting
A segment is a distinguishable component of the Group which provides

products and/or services in a particular geographical area or a particular
tourism activity and for which separate financial information is available.
The results of the Groups operating

segments are regularly reviewed by
the Board of Directors (as the Groups
chief operating decision-maker) to determine how resources should be distributed and performance potential
assessed. Segments are managed at the
EBIT level.
The segment reporting reflects the
management structure implemented
within the Kuoni Group. This divides
up leisure travel activities based on the
geographical location of the revenue
generating Group company, which in
turn largely corresponds to the origin
of the customers concerned. The same
geographical breakdown based on the
location of the Group company would
be less meaningful for the activities
of Destination Management, which
largely provides services at holiday
destinations.
The Groups six reportable segments
are Scandinavia, the United Kingdom
& Benelux, Switzerland, Southern Europe, Asia and Destinations. These are
organised into three divisions, with
Destinations forming both a division
and a reportable segment.
Interdivisional revenues are accounted for at market rates. The reportable
segments apply the same accounting
principles as the Group.
All operational assets and liabilities
which can be directly or reasonably
assigned to a reportable segment are
shown within the divisions concerned.
Earnings per Share (EPS)
Earnings per share are calculated by

dividing the net result attributable to
Kuoni Travel Holding Ltd. shareholders by the weighted average number of
registered shares entitled to dividends
during the year under review.
02_04_06_
02_04_07_
>>
K u o n i G R OUP
Notes to the Consolidated Financial Statements
1. Exchange Rates
The following exchange rates were used for the Groups most important
currencies:
Diluted earnings per share further
take into account any dilution effect
which might have resulted from the
exercise of options.
anticipated turnover from cash-generating units with capitalised goodwill

could result in shortened useful lives
or impairment.
Management Estimates and

Assumptions
Provisions for Warranties

and Onerous Contracts
Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates
may be necessary if there are changes
in the circumstances on which the estimate was based, or as a result of new
information or additional experience.
Such changes are recognised in the period in which the estimate is revised.
Group companies may become involved in warranty proceedings or onerous contracts in the course of their
ordinary operating activities. Provisions for warranties and onerous contracts are measured on the basis of the
information available and a realistic
estimate of the expected outflow of
resources. The outcome of these proceedings may result in claims against
the Kuoni Group that cannot be met
at all or in full through provisions or
insurance cover.
The key assumptions about the future

and key sources of estimation uncertainty that have a significant risk of
causing a material adjustment to the
carrying values of assets and liabilities within the next twelve months are
described below.
Tangible fixed Assets, Goodwill and
Other Intangible Assets
The Kuoni Group has tangible fixed assets with a carrying value of CHF 201
million (see note 13), other intangible
assets with a carrying value of CHF
347 million (see note 15) and goodwill
with a carrying value of CHF 940 million (see note 14).
Goodwill is reviewed annually for impairment. The net book values of tangible fixed assets and other intangible
assets are reviewed if there is any indication of impairment. To assess if
any impairment exists, estimates are
made of the future cash flows expected to result from the use of the asset
and its eventual disposal. Actual outcomes could vary significantly from
such estimates of discounted future
cash flows. Factors such as changes
in the planned use of buildings, the
presence or absence of competition,
technical obsolescence or lower than
Litigation Provisions
The Kuoni Group is party to various legal proceedings. Further claims could
also arise which might not be covered
by existing liabilities or by insurance.
Moreover, no assurance can be given
that the extent of such matters will not
increase, or that possible future lawsuits, claims or proceedings will not be
material. Any such changes that arise
could impact the litigation provisions
recognised in the statement of financial position in future periods.
Income Taxes
As at 31 December 2011, the net receivable for current income taxes amounts
to CHF 6.7 million, the net payable for
current income taxes amounts to CHF
28.2 million and the net payable for deferred income taxes amounts to CHF
63.0 million (see note 23). Significant
estimates are required in determining the current and deferred tax assets
and liabilities. Some of these estimates
are based on interpretations of existing tax laws and regulations. Management believes that these estimates
02 Financial Report
are reasonable and that the recognised

liabilities for income-tax-related uncertainties are adequate. Various internal and external factors may have
favourable or unfavourable effects on
income tax assets and liabilities. These
factors include, but are not limited to,
changes in tax laws and regulations or
their interpretation, and changes in
tax rates. Any such changes that arise
could impact the current and deferred
income tax assets and liabilities recognised in the statement of financial
position in future periods. Furthermore, in order to determine whether
tax loss carry-forwards may be carried
as assets, it is first necessary to critically assess the probability of future
taxable profits against which to offset
them. Such profits depend themselves
on a variety of influencing factors and
developments.
Year-end rates in CHF

Currency
USD
GBP
EUR
DKK
NOK
SEK
HKD
INR
KES
THB
Average rates in CHF
Unit
2011
2010
2011
2010
1
1
1
1
1
1
1
1
1
1
0.940
1.451
1.217
0.164
0.157
0.136
0.121
0.018
0.011
0.030
0.936
1.449
1.251
0.168
0.160
0.140
0.120
0.021
0.012
0.031
0.887
1.421
1.233
0.166
0.158
0.137
0.114
0.019
0.010
0.029
1.042
1.609
1.381
0.185
0.173
0.145
0.134
0.023
0.013
0.033
2. Acquisitions
Acquisitions 2011
Lime Travel AB, Stockholm
(100% acquired 1 March 2011), Tour Operating Business
Gullivers Travel Associates, London
(100% acquired 1 May 2011), Destination Management Services
In addition, our shareholdings in the following company were increased

in the course of the year:

UTE Megapolus Group Co Ltd, Moscow
(from 80% to 92%), Tour Operating Business
178 | 179
02_04_07_
K u o n i G R OUP
>>
>>
Acquisitions 2010
Gullivers Travel Associates (GTA), London
TBA Global, New York (asset deal effective 1 February 2010),
The Kuoni Group acquired Gullivers Travel Associates (GTA) in full,
Destination Management Services
together with its subsidiaries in Europe, Asia and the Americas,
Krone Golf Tours, Copenhagen
at the beginning of May 2011. GTA is one of the worlds leaders in the
(asset deal effective 1 September 2010), Tour Operating Business
rapidly-growing online travel services market, with operations in
Gulf Dunes LLC, Dubai (100% acquired 1 December 2010),
26 cities. GTAs online reservation facilities were used to book some
12 million hotel bednights in 2010.
Reem Tours and Travel LLC, Dubai (100% acquired
1 December 2010), Destination Management Services
GTAs core business is centred on hotel reservations, coach services,
Best Tours S.p.A., Milan
transfers, city sightseeing tours and destination services for group
(100% acquired 31 December 2010), Tour Operating Business
and individual travellers. In strategic terms, GTA excellently enhances
Best Tours, Brussels
Kuonis traditional tour operating business. The new acquisition also
(asset deal effective 31 December 2010), Tour Operating Business
fits well into Kuoni Destination Management (KDM): while GTAs

strengths lie in the swiftly-growing online business-to-business services
In addition, our shareholdings in the following company were increased
market, KDM specialises in group leisure travel arrangements. GTA
in the previous year:
is also strongly anchored in the rapidly-expanding Asian market. GTAs

results are incorporated into the reporting segment Destinations.
Kuoni Private Safaris (E.A.), Nairobi
(from 80% to 100%), Destination Management Services
The GTA purchase price amounts to USD 664 million in cash. The assets
and liabilities in the table were taken over as shown: The acquisition-
CHF Million
Goodwill
Other intangible assets
Other tangible assets
Time deposits
Prepaid expenses
Non-current liabilities
Current liabilities
Non-controlling interest
Purchase price in cash
Cash and cash equivalents acquired
Purchase price not yet paid
Sales price adjustments on prior year acquisitions
Cash flow used for acquisitions
related intangible assets identified were valued at CHF 273 million while
Book value and purchase price of the acquisitions
Gullivers Travel
Associates
Others
Total
acquired
2011
Total
acquired
2010
18.8
599.8
293.2
5.8
6.5
0.0
188.8
21.7
73.0
446.1
0.0
615.5
0.0
1.5
1.4
0.1
1.1
0.3
0.4
0.2
0.4
1.6
0.0
3.0
18.8
601.3
294.6
5.9
7.6
0.3
189.2
21.9
73.4
447.7
0.0
618.5
0.2
13.5
8.8
0.0
3.2
0.7
8.9
3.1
2.0
17.3
0.0
19.1
6.5
1.7
0.0
607.3
1.1
0.4
1.2
0.3
7.6
2.1
1.2
607.6
3.2
0.7
0.0
15.2
02 Financial Report
non-tax-deductible goodwill amounted to CHF 600 million. The resulting

goodwill largely reflects the value of the synergies and future earnings
which Kuoni expects to generate from the acquisition. The purchase price
is not yet final, and may change as a result of still-pending contractual
conditions. In view of the fact that the corresponding valuations have not
yet been completed, the information on the assets and liabilities
acquired is not final.
180 | 181
02_04_07_
K u o n i G R OUP
>>
GTA reported turnover of CHF 1346 million for the eight-month period
>>
Acquisitions 2010
of its Kuoni Group ownership in 2011 and an EBIT after amortisation of

intangible assets of CHF 16.4 million. The Kuoni Group incurred
The acquisitions effected in 2010 are of negligible significance in terms of
acquisition and integration costs of CHF 20.2 million as a result of the
their size. The total purchase price of all these acquisitions amounted
acquisition. These are included in Other operating expense.
to CHF 19.1 million in cash. The companies acquired generated an aggregate turnover of CHF 28.9 million under their Kuoni Group ownership
If the acquisition had been effected as of 1 January 2011, GTA would have
in 2010 (or a turnover of CHF 140.3 million for the full year) and reported
contributed a CHF 472 million higher turnover and a CHF 8 million
an aggregate negative EBIT (after amortisation of intangible assets)
lower EBIT result.
of CHF 0.2 million (and a negative EBIT of CHF 2.2 million for the full year).
Other acquisitions 2011
If all these acquisitions had been completed on 1 January 2010, the

Kuoni Group would have reported a CHF 111.4 million higher turnover
The second acquisition in 2011, of Lime Travel, is of minor importance
and a CHF 2.0 million lower EBIT for the 2010 business year.
in view of its size. The purchase price amounted to SEK 21 million in cash.
The company generated turnover of CHF 9 million in the ten-month
reporting period and achieved a breakeven EBIT result.
Had the two acquisitions been effected on 1 January 2011, the Kuoni
Group would have reported an additional CHF 474 million of turnover
and a CHF 8 million lower EBIT result for the year.
02 Financial Report
182 | 183
02_04_07_
K u o n i G R OUP
>>
CHF 1000
Scandinavia
3. Segment Reporting
Information
by reportable
segments/divisions
>>
Northern
Region
UK & Benelux
Southern
Europe
Switzerland
Southern
Region
Asia
Destinations
Total reportable
segments/divisions
Corporate
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
External turnover
Turnover with
other segments
Turnover of divisions
Eliminations
Turnover
957362
1044394
506692
594585
1464054
1638979
711730
796933
303177
352590
369712
315964
1384619
1465487
2262652
879179
5111325
3983645
565
957927
612
1045006
2
506694
0
594585
564
1464618
612
1639591
1
711731
8
796941
1798
304975
2582
355172
171
369883
182
316146
1623
1386242
2368
1467855
142544
2405196
137707
1016886
144731
5256056
144731
140687
4124332
140687
GOP
GOP margin
171961
18.0%
201020
19.2%
87059
17.2%
100455
16.9%
259020
17.7%
301475
18.4%
166146
23.3%
181788
22.8%
49508
16.2%
57709
16.2%
185296
50.1%
167760
53.1%
400950
28.9%
407257
27.7%
365701
15.2%
164419
16.2%
1025671
873151
Depreciation
and amortisation
4905
5147
7438
8051
12343
13198
9242
9373
2949
2465
8463
9077
20654
20915
42486
7701
75483
41814
17324
Earnings before
interest and taxes
(EBIT)
EBIT margin
28506
3.0%
43922
4.2%
2927
0.6%
8145
1.4%
31433
2.1%
52067
3.2%
8070
1.1%
8339
1.0%
8869
2.9%
4465
1.3%
48599
13.1%
42221
13.4%
47800
3.4%
46095
3.1%
47606
2.0%
21190
2.1%
126839
119352
405
43
1600
1596
2005
1639
2005
244467
223343
341940
247201
290710
127951
322688
144708
534153
350269
664277
391558
239597
210691
275046
182539
68787
67683
71098
67062
186323
83992
212068
88970
493389
361048
556722
337080
1412985
631064
377610
223526
6799
3646
4819
4621
11618
8267
5909
6316
4875
2194
13301
6676
24085
15186
12175
915
931
984
1027
768
814
709
724
1683
1745
1693
1751
1107
1066
1166
1153
545
520
503
525
3677
3810
3023
3152
5329
5396
4692
4830
3867
4795
Share in result
from associates
Assets
Liabilities
Capital expenditure
Number of staff
(full-time equivalents):
annual average
at year-end
2011
2010
Group
2011
2010
5111325
3983645
1025671
20.1%
873151
21.9%
13055
92807
54869
52653
60989
74186
1.5%
58363
1.5%
1639
88
167
1917
1472
2440527
1342381
1598609
952164
583851
3819211
2223321
3063831
2498912
1724302
1820941
1258547
3236
47878
26689
9314
16655
57192
43344
2262
2319
10879
11936
8647
8900
169
168
125
148
11048
12104
8772
9048
1 The assets and liabilities shown under Corporate

include the Corporate items from the statement of
financial position and the financial assets/liabilities
and tax assets/liabilities of the Kuoni Group.
02 Financial Report
184 | 185
Transcending
our own limitations.
fig. 4:
The Jinshanling section of the Great Wall of China, 135 km north of Beijing, the morning after a winter snow fall.
186 | 187
02_04_07_
K u o n i G R OUP
>>
>>
Breakdown of Turnover by Geographical Area
CHF 1000
Switzerland1
International
Eliminations
Total
2011
2010
Change
in %
725537
4420647
34859
5111325
827180
3202568
46103
3983645
12.3
+38.0
+24.4
+28.3
Breakdown of assets by geographical area
CHF 1000
Switzerland
International
Total
Tangible
fixed assets
31 Dec 2011
Intangible
assets
31 Dec 2011
Total
31 Dec 2011
Tangible
fixed assets
31 Dec 2010
Intangible
assets
31 Dec 2010
Total
31 Dec 2010
74904
125895
200799
44451
1242663
1287114
119355
1368558
1487913
76729
103379
180108
45959
451265
497224
122688
554644
677332
2011
2010
Change
in %
418326
37045
35805
33499
524675
365166
36922
29827
27638
459553
+14.6
+0.3
+20.0
+21.2
+14.2
1 Tour Operating Business and Destination Management Services
4. Turnover
Breakdown of turnover by activity
CHF 1000
Tour Operating Business
Eliminations
Total
2011
2010
Change
in %
2845788
2405196
139659
5111325
3102470
1016886
135711
3983645
8.3
+136.5
2.9
+28.3
Turnover for 2011 was CHF 1127 million or 28.3% higher than in the
prior year. Organic growth increased turnover by 1.2%, acquisitions
added 35.4% and currency movements reduced turnover volume by 8.3%.
5. Gross Profit
Gross profit comprises turnover less all directly allocable airline, ship,
rail, hotel, car rental and similar costs. Gross profit also includes
Information on significant Customers
the currency gains or losses from exchange rate differences realised or

No customer accounts for more than 10% of total turnover.
incurred by individual subsidiaries in the course of their operations.
Breakdown of EBIT
CHF 1000
Total EBIT of reportable segments/divisions
Corporate
Corporate cost
Investment and cost-reduction programme
Total
2011
2010
Change
in %
126839
119352
+6.3
16886
35767
74186
20530
40459
58363
+17.7
+11.6
+27.1
An exceptional investment and cost-reduction programme was launched

at the end of January 2009. The three-year programme envisages total
investments of CHF 106 million. The programme has seen key initiatives
6. Personnel Expense
Personnel expense increased by 14.2%. Organic growth accounted for

+0.8%, acquisitions for +21.4% and currency movements for 8.0%
of the overall change.
CHF 1000
Wages and salaries
Pension costs
Other social security costs
Other personnel costs
Total
launched in the areas of electronic distribution channels, global marketing and branding and raising employee skills and efficiency. A total of
CHF 35.8 million was spent on the programme in 2011 (CHF 40.5 million
in 2010).
02 Financial Report
188 | 189
02_04_07_
K u o n i G R OUP
>>
SHare-Based Compensation
>>
investment risk. The members of group-wide senior management are

remunerated under the same MPP, but with different proportions
The members of the Board of Directors (exclusively non-executive
of the fixed and variable and the short-term and long-term incentive
directors) receive fixed compensation. 50% of this total compensation
components.
is paid in cash form; the remaining 50% is paid in shares. The issue
price of the shares concerned is redefined each year and amounts to
Share-based compensation costs for 2011 totalled CHF 8.4 million (prior
the average of all closing prices for the last ten trading days of the month
year: CHF 13.4 million). The average price of the 275 72 shares used for such
before the Ordinary General Meeting of Shareholders. The shares are
purposes in 2011 amounted to CHF 306 (prior year: 56627 shares used;
awarded on the trading day following the day of dividend distribution
average price CHF 237). The price of each share so used is determined by its
after the Ordinary General Meeting of Shareholders, and are subject
stockmarket price on assignment, less a discount for the corresponding
to a blocking period of three years.
vesting period. An adjustment of the performance factor for current plans

reduced share-based compensation costs by CHF 9.5 million (385 71 shares).
A Management Performance Plan (MPP) compensation system has been

established for Group Executive Board members and senior management
Defined Benefit Retirement Plans
groupwide. Under the MPP, the members of the Group Executive Board
receive a yearly compensation which is divided roughly equally into a
The Group incurs costs for retirement benefit plans in accordance with
fixed and a variable performance-based component. Around one-third of
prevailing regulations in the countries in which it operates. The benefits
this variable component takes the form of a short-term incentive, while
paid to insured employees are generally calculated as a percentage of
the remaining two-thirds take the form of a long-term incentive.
their expected salary in the last few years prior to retirement.
The short-term incentive is based in equal amounts on the achievement
The following assumptions (weighted averages) used in actuarial
of annual financial targets and personal targets, and is paid in cash. The
calculations were adjusted to take account of the economic situation in
long-term incentive, which uses a Performance Share Plan to assign
the country concerned:
entitled persons a certain number of Kuoni shares at the beginning of

each plan period (business year), is based by contrast on the value-adding
performance of the person concerned over a three-year period. The
number of shares assigned at the beginning of the plan period will be
multiplied by a factor of between 0.25 and 3, depending on the employees
subsequent performance in the period concerned. The basis of this
Discount rate
Expected return on investment
Salary increases
Rate of pension increase
2011
2010
2.50%
3.20%
1.70%
0.30%
3.20%
4.10%
1.70%
0.30%
financial performance assessment is the value-based management

performance indicator known as Kuoni Economic Profit or KEP. The
The expected return on capital on the investments of funded pension
shares finally awarded based on the employees performance will
plans is based on the long-term historical performance of the individual
be issued in April following the three-year vesting period. These shares
asset categories for each pension plan.
will not be subject to any subsequent blocking period.

Where funded retirement plans exist, the costs of occupational pension
The KEP target for the Kuoni Group underlying this compensation
coverage are transferred in accordance with the legislation in force in
component, which is used to determine the payment of any variable
the country concerned. The s urpluses of the major defined benefit plans
compensation amount, is itself based on investors expected returns on
are shown below:
the market value of the Kuoni Group and on the corresponding

02 Financial Report
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CHF 1000
Assets of independent retirement plans at fair value
Defined benefit obligations (DBO) of the funded pension plans
Deficit
Cumulative, unrecognised actuarial and investment loss (net)
Unrecognised part of defined benefit assets
Defined benefit assets recognised in the statement of financial position (net)
Pension assets
Pension liabilities
>>
31 Dec 2011
31 Dec 2010
345708
373883
28175
355875
354277
1598
46707
0
18532
16249
0
17847
18775
243
18112
265
Retirement plan obligations were as follows:

CHF 1000
2011
2010
Present value of obligation as at 1 January
354277
338054
Current employer service cost

Interest cost
Employee contributions
Benefits paid
Actuarial losses on obligation
Present value of obligation as at 31 December
10365
11072
5190
25311
18351
61
373883
8825
12123
5598
20330
14834
4827
354277
2011
2010
10365
11072
14584
163
514
7530
8825
12123
13894
40
1323
8417
29515
37045
28505
36922
The assets of the independent retirement plans were as follows:

CHF 1000
2011
2010
Fair value of assets as at 1 January
355875
340322
Expected return on assets

Employer contributions
Employee contributions
Benefits paid
Actuarial losses on assets
Fair value of assets as at 31 December
14584
8210
5190
25311
12788
52
345708
13894
9133
5598
20330
11114
3856
355875
Employers contributions for 2012 are estimated at CHF 8.3 million.

Actual income from investments for 2011 amounted to CHF 1.8 million
(2010: CHF 25.0 million). The assets of the retirement plans were
The actuarially determined retirement benefit costs stated above are set
against the Groups contributions to retirement benefit plans. The
following table gives a calculation of the pension costs of the Groups
major defined benefit plans:
CHF 1000
Current employer service cost
Interest costs
Expected return on assets
Recognition of actuarial losses
Effect of the asset ceiling
Pension cost recognised in income statement
Other pension cost (defined contribution plans and state retirement benefits)
Total pension costs
invested in the following asset categories at year-end:

CHF 1000
Equity securities
Debt securities
Real estate
Other assets
Total assets
31 Dec 2010
plans, the impact of differences between the expected and the actual
26%
53%
9%
12%
100%
27%
53%
8%
12%
100%
returns on pension fund assets and the components of the actuarial
The retirement plans hold no shares or other equity instruments of

Kuoni Travel Holding Ltd., Zurich.
02 Financial Report
The following table shows the (deficit)/surplus held by the Groups pension
31 Dec 2011
profits/(losses) on the defined benefit obligation for the past five years.
CHF 1000
2011
2010
2009
2008
2007
Assets of independent retirement plans at fair value

Defined benefit obligations (DBO)
of the funded pension plans
Deficit
345708
355875
340322
308713
398321
373883
28175
354277
1598
338054
2268
313984
5271
348133
50188
Experience-based adjustments to plan assets held

Experience-based adjustments to DBO
Impact of changes in actuarial assumptions on DBO
12788
5538
23889
11114
1604
16438
17005
5161
6569
73333
1307
13305
14998
3197
29380
192 | 193
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7. Other Operating Expense
CHF 1000
Rent and utilities
Aircraft leasing
Administrative and other expenses
Total
>>
2011
2010
Change
in %
67921
19015
164507
251443
67371
26121
115086
208578
+0.8
27.2
+42.9
+20.6
8. Depreciation and Amortisation
Breakdown of depreciation and amortisation by type of asset.

CHF 1000
On buildings
On other tangible fixed assets
On intangible assets
Total
2011
2010
Change
in %
5266
23221
64320
92807
4520
21849
28500
54869
+16.5
+6.3
+125.7
+69.1
10. Financial Result
CHF 1000
2011
2010
Interest income
Dividend income
Share in profits from associates
Non-operational exchange gains (net)
Other financial income
Financial income
5171
10
145
1040
307
6673
4176
7
187
0
221
4591
12417
0
2062
1589
16068
9244
8923
1659
3100
22926
2011
2010
34429
2983
31446
18876
2026
16850
Interest expenses
Non-operational exchange losses (net)
Share in losses from associates
Other financial expenses
Financial expense
The increase in interest expenses derives from the syndicated loan facility.
In 2010 Kuoni made a takeover offer for Et-china.com International
Holdings Ltd. in Guangzhou (China). However, there was a lack of clarity
9. Earnings before Interest and Taxes (EBIT)
among shareholders of GZL Guangzhou International Travel Services, a

tour operator in which Et-china holds a stake and which is the main
EBIT for 2011 was CHF 15.8 million or 27.1% up on the prior-year result.
interest to Kuoni. Kuoni was not affected by this lack of clarity. Because of
Organic growth increased EBIT by 28.2%, acquisitions increased it by
this unresolved situation, the takeover could not be made. Acquisition
16.9% and currency movements decreased EBIT by 18.0%.
costs of CHF 3.1 million were incurred in prior year through the activities
connected with this planned takeover. These are shown under other
financial expenses.
11. Income Taxes
CHF 1000
Current taxes
Deferred taxes
Total
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Tax expense can be analysed as follows:

CHF 1000
Tax expense at the average weighted Group tax rate (net)
Non-tax-deductible expenses
Tax-free income
Capitalised deferred tax assets from previously not recognised tax loss carry-forwards
Utilisation of tax loss carry-forwards, not recognised in the statement of financial position
Tax effect from current losses, not eligible for recognition as assets
Effect of changes in tax legislation
Tax expense for earlier periods
Tax expense reported
2011
2010
10398
4929
2313
1193
953
20467
267
378
31446
11129
1605
923
2700
4501
11452
85
873
16850
The weighted average tax rate of the Group for the year under review
was 16% (2010: 28%), The various tax rates applicable to the group
subsidiaries positive and negative results reduced the tax rate in 2011.
Depending on the country involved, profit distributions have varying
tax consequences, the extent of which cannot be estimated.
The Group has the following unrecognised tax loss carried forward:
Expiring CHF 1000
Up to 1 year
1 to 5 years
Over 5 years
Unlimited
Total
Not capitalised maximum positive tax effect
2011
2010
51
146122
66957
141871
355001
5997
127994
32590
124572
291153
103494
84360
12. Earnings per Share (EPS)
13. Tangible Fixed Assets
Land and
buildings
Other tangible
fixed assets
Total tangible
fixed assets
Purchase cost as at 1 January 2010
205616
152060
357676
Additions
Disposals
Acquisitions
Purchase cost as at 31 December 2010
2493
869
0
12969
194271
22921
21774
161
11322
142046
25414
22643
161
24291
336317
Accumulated depreciation as at 1 January 2010
69087
90218
159305
Additions
Disposals
Accumulated depreciation as at 31 December 2010
4520
32
2320
71255
21849
19857
7256
84954
26369
19889
9576
156209
Net book value as at 31 December 2010
123016
57092
180108
194271
142046
336317
Additions
Disposals
Acquisitions
6538
0
5269
2028
204050
29497
16998
13582
5911
162216
36035
16998
18851
7939
366266
Accumulated depreciation as at 1 January 2011
71255
84954
156209
Additions
Disposals
Accumulated depreciation as at 31 December 2011
5266
0
241
76280
23221
15377
3611
89187
28487
15377
3852
165467
127770
73029
200799
31 Dec 2011
31 Dec 2010
294860
183248
276182
129987
CHF 1000

2011
2010
Basic earnings per registered share B in CHF

Net result attributable to nominal shareholders B of Kuoni Travel Holding Ltd. in CHF 1000
Weighted average number of nominal shares B outstanding
9.22
29702
3220792
7.43
19901
2680030
Basic earnings per registered share A in CHF

Net result attributable to nominal shareholders A of Kuoni Travel Holding Ltd. in CHF 1000
Weighted average number of nominal shares A
1.84
2093
1135075
1.49
1414
952000
02 Financial Report
Fire Insurance Values
CHF 1000
Buildings
Furniture, fixtures and equipment
196 | 197
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>>
full regard to country- and currency-specific risks relating to cash flows.
14. Goodwill
CHF 1000
2011
2010
Net book value as at 1 January
383064
405286
Acquisitions
Purchase price adjustments
Net book value as at 31 December
601265
1246
43305
939778
13482
420
35284
383064
The management believes that barring extraordinary events no

possible changes to the assumptions made would cause the carrying
amount of the Groups goodwill to exceed its recoverable value.
15. oTher Intangible Assets
Intangible
assets from
acquisitions
Further
intangible
assets
Total other
intangible
assets
141173
52864
194037
Additions
Disposals
Acquisitions
0
0
8733
13367
136539
17930
8085
64
2764
60009
17930
8085
8797
16131
196548
Accumulated depreciation and amortisation as at 1 January 2010
40712
28169
68881
Additions
Disposals
Accumulated depreciation and amortisation as at 31 December 2010
13816
0
4932
49596
14684
8081
1980
32792
28500
8081
6912
82388
86943
27217
114160
136539
60009
196548
Additions
Disposals
Acquisitions
0
0
274101
17281
393359
21157
8551
20521
2282
90854
21157
8551
294622
19563
484213
Accumulated depreciation and amortisation as at 1 January 2011
49596
32792
82388
Additions
Disposals
Accumulated depreciation and amortisation as at 31 December 2011
38723
0
561
87758
25597
8276
994
49119
64320
8276
1555
136877
305601
41735
347336
CHF 1000
The cash-generating units of the Kuoni Group are considered to be its

reportable segments. These are examined to determine whether currently
capitalised goodwill amounts still reflect the value thereof, or whether
impairments are required. Goodwill is allocated to the cash-generating
units of the Kuoni Group as follows:
Discount rate
before taxes
CHF 1000
Scandinavia
UK & Benelux
Switzerland
Southern Europe
Asia
Destinations
Total
11.8%
12.9%
9.5%
14.4%
22.0%
13.2%
31 Dec 2011
31 Dec 2010
217898
115197
102701
57347
32154
10585
14608
664533
939778
221053
118087
102966
60028
32154
10881
16993
101983
383064
The value of goodwill is tested at least annually for impairment, or if

certain factors or general conditions suggest that its carrying amount can
no longer be recovered. The Kuoni Group applies a standard method to
assess goodwill values. The basic amount which should be recovered by
any goodwill reappraised is based on value-in-use, which is determined
from cash flow projections that are themselves based on the latest
management-approved business plan. This plan pays due and full regard
to the organisational changes and includes the latest management
estimates on turnover and margin trends and on operating costs. The
business plan also pays due regard to historic values based on past
experience and includes projections for the next five years. Subsequent
Intangible assets deriving from acquisitions consist largely of capitalised
years are considered on a perpetual annuity basis, using growth rates
trademark rights, while further intangible assets include software
from 0.5% to 2%. The discount rates have been calculated on the basis of
purchased as well as software projects in the course of construction
the weighted average capital costs of the Kuoni Group, with due and
totalling CHF 7.5 million (2010: CHF 0).
02 Financial Report
198 | 199
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16. Investments in Associates
CHF 1000
2011
2010
13077
12591
Share in profits
Share in losses
Investment in associates
145
2062
402
11562
187
1659
1958
13077
18. Cash and Cash Equivalents
CHF 1000
Cash holdings and bank current accounts
Time deposits and money market investments with original term up to 90 days
Total
2011
2010
42269
45411
Additions
Disposals
Acquisitions
5540
5387
1141
1290
42273
6747
8599
5
1295
42269
CHF
GBP
EUR
USD
SEK
Other
Total
funded pension plans totalling CHF 18.8 million (2010: CHF 18.1 million)
see note 6. As in the previous year, there are no loans to associates.
02 Financial Report
31 Dec 2010
252388
36473
288861
463692
124206
587898
31 Dec 2011
31 Dec 2010
33846
51325
52246
36521
9145
105778
288861
190839
119021
52548
43769
82789
98932
587898
2011
2010
0.1%
0.5%
0.9%
0.3%
1.8%
0.2%
0.6%
0.5%
0.4%
0.6%
The average interest rates are:
Other financial assets comprise minority holdings and loans amounting

to CHF 23.5 million (2010: CHF 24.2 million) and pension assets from
31 Dec 2011
Cash and cash equivalents are denominated in the following currencies:

CHF 1000
17. Other Financial Assets
CHF 1000
CHF
GBP
EUR
USD
SEK
200 | 201
02_04_07_
Kuoni GRoup
>
>
19. time deposits
20. Accounts ReceivAble And otheR ReceivAbles
CHF 1 000
This position contains time deposits maturing in more than 90 days.
31 Dec 2011
31 Dec 2010
295 154
0
62 099
23 042
32 723
366 934
150 951
15
47 012
15 615
27 731
210 094
31 Dec 2011
31 Dec 2010
213 319
111 025
31 878
12 793
20 961
389 976
23 042
366 934
122 008
45 399
22 726
16 628
18 948
225 709
15 615
210 094
2011
2010
Flat-rate value adjustments 1 January
15 615
15 478
Change (net)
Flat-rate value adjustments 31 December
7 953
526
23 042
1 034
897
15 615
Receivables from customers

Receivables from associates
Other receivables
Flat-rate value adjustments
Positive fair values of derivative financial instruments held
Total
Access to the time deposits denominated in SEK, amounting to

CHF 76.1 million, is limited due to contracts with the British Civil
Aviation Authority (CAA).
Time deposits are denominated in the following currencies:
CHF 1 000
EUR
GBP
USD
SEK
Other
Total
31 Dec 2011
31 Dec 2010
0
2 823
106
76 104
7 841
86 874
49
0
781
78 119
7 419
86 368
2011
2010
1.0%
1.0%
0.6%
1.5%
1.0%
0.7%
1.1%
The average interest rates are:
EUR
GBP
USD
SEK
Other receivables include tax receivables of CHF 6.7 million

(2010: CHF 4.8 million).
Accounts receivable show the following payment dates:
CHF 1 000
Payment not yet due
Payment overdue 1 to 30 days
Payment overdue by more than 90 days
Flat-rate value adjustments
Total
Flat-rate value adjustments to overdue receivables totalled CHF 2.4 million

(2010: CHF 2.5 million) to receivables between 61 and 90 days overdue
and CHF 20.6 million (2010: CHF 13.1 million) to receivables over 90 days
overdue. Some of the underlying receivables are expected to be paid.
The receivables with no payment date relate largely to long-term customer relations with agents or processing companies.
Flat-rate value adjustments showed the following developments:
CHF 1 000
02 FinAnciAl RepoRt
202 | 203
Leaving well
enough Alone.
fig. 5:
One of the highest volcanic peaks known as the Tezoua in the bizarre Hoggar Mountains of southern Algeria.
204 | 205
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21. Equity
The capital administered by the Kuoni Group corresponds to the consolidated equity. Kuonis aims in administering this capital are:

to maintain the sound structure of its statement of financial position
based on going-concern values;
to maintain the financial scope required for future investments and
acquisitions;

to ensure a return for investors that is commensurate with their
investment risk.
COMPOSITION OF SHARE CAPITAL
Registered
share A
Registered
share B
Total
1249500
0.20
3748500
1.00
4998000
Share capital
CHF
in %
249900
6.25
3748500
93.75
3998400
100.00
Voting rights
Number
in %
1249500
25.00
3748500
75.00
4998000
100.00
Type of share
Number
Nominal value in CHF
The Kuoni Group administers its equity by means of its statement of

financial position equity ratio, i.e. the proportion of equity to total assets.
Conditional Capital
The equity ratio amounted to 31.0% on 31 December 2011. The Kuoni

Group is not subject to any legal covenants relating to minimum equity
Conditional capital issuable via the exercise of conversion rights and/or
requirements. For covenants relating to financial indebtedness, see
warrants linked to bonds or similar debt issued by Kuoni Travel Holding
page 213.
Ltd. or any of its subsidiaries in the domestic or international capital
CHF 1000
Equity attributable to shareholders of Kuoni Travel Holding Ltd.
Non-controlling interests
Total equity
Total assets
Equity ratio
31 Dec 2011
31 Dec 2010
765882
8728
774610
553520
8874
562394
2498912
31.0%
1820941
30.9%
markets and/or via the exercise of options granted to shareholders

amounts to a maximum of CHF 384000, with a further maximum of
CHF 96000 reserved for employee stock option plans.
Authorised Capital
There is an authorised capital of maximum CHF 571200. We refer to

the related information on page 243 of the financial statements of
The Board of Directors makes a proposal to the Annual General Meeting
of Shareholders on the use of any profit or balance available for distri

bution. The Kuoni Group pursues a results-based distribution policy and
Restricted Transferability Provisions
generally distributes between 30% and 35% of its net profit for the year
to its shareholders. The Board of Directors will propose to the Annual
The Articles of Incorporation stipulate that no more than 3% of total
General Meeting of 17 April 2012 that shareholders receive a with-holding
voting rights may be entered in the name of any one shareholder.
tax-free appropriation from the newly created capital contribution

reserve. This payment should also pay due regard to the Kuoni Groups
Opting out/Opting up
long-term earnings distribution policy. In view of this, the Board of

Directors will recommend the distribution of CHF 0.60 per registered
There is no opting-out or opting-up clause in the Articles of
share A and CHF 3.00 per registered share B for the 2011 business year.
Incorporation.
The payout ratio amounts to 34%.
02 Financial Report
206 | 207
02_04_07_
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>>
management. The changes to treasury shares reflect the registered shares
Principal Shareholders
B purchased by or issued to the Board of Directors, the Group Executive

The following principal shareholders are known to us:
Board and management.
Kuoni and Hugentobler-Foundation, Zurich

31 December 2011: 1249500 registered shares A = 25.00% of the voting rights
Options have not been issued from 2005 onwards. The Kuoni Group has
Silchester International Investors Limited, London

31 December 2011: 755062 registered shares B = 15.11% of the voting rights1
had no options outstanding since 31 December 2008.
1 Voting rights restricted to 3% in accordance with

Article 5 of the Articles of Incorporation of Kuoni
Travel Holding Ltd.
2 As per share register 31.12.2011 last notification
dated 9 December 2009, therefore no further details
on options.
3 As per share register 31.12.2010.
Federation of Migros Cooperatives, Zurich together with

Anlagestiftung der Migros Pensionskasse, Zurich
Pensionskasse der Globus-Unternehmen, Spreitenbach
the free reserves of Kuoni Travel Holding Ltd. subsequent to the
approval of an appropriate resolution by the General Meeting of
Shareholders;
Treasury Shares
Share plan
Number of
registered
shares B
Book value
CHF 1000
Held on 1 January 2010
135494
6775
Sales
Use
Held on 31 December 2010
2796
53831
78867
140
2692
3943
Exercise of subscription rights

Use
46925
10999
136791
12670
550
17163
The exercising of subscription rights is related to the rights offering of

May 2011. Kuoni exercised all its subscription rights on its treasury
shares.
Retained Earnings
Only a limited amount of retained earnings is available for distribution:
Pictet Funds S.A., Geneva

31 December 2011: Voting rights less than 3%
Options
Share Plan
the reserves of subsidiaries in accordance with local fiscal and legal
provisions, provided they are distributed first to the parent company.
Other Reserves
Other reserves contain translation differences as well as hedging reserves

and fair-value reserves. The last two of these are shown with due consideration for deferred taxation amounts.
CHF 1000
Reserves as at 1 January 2010
Reserves as at 31 December 2010
Reserves as at 31 December 2011
Translation
differences
Hedging
reserves
Fair value
reserves
Total
169072
3221
172293
35377
204449
3648
9033
0
8606
0
0
0
0
3648
9033
35377
213055
64186
268635
7843
10653
0
9890
0
0
0
0
7843
10653
64186
258745
The remaining treasury shares held are reserved for the employee share
plan of the Board of Directors, the Group Executive Board and
02 Financial Report
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Translation Differences
The biggest translation differences derived from the translation of the

assets and liabilities of Group companies reporting in GBP, EUR and SEK
and of USD-denominated intragroup loans of an equity nature.
Hedging Reserves
The hedging reserves correspond to the positive or negative fair value of

currency and fuel price hedging contracts classified as cash flow hedges.
They are expected to be removed from equity within 12 months.
Fair-Value Reserves
Deferred taxes changed as follows:

CHF 1000
2011
2010
Deferred tax assets

Deferred tax liabilities
Deferred tax assets as at 1 January (net)
39861
39438
423
39684
43059
3375
Changes recognised in the income statement

Changes not recognised in the income statement
Acquisitions
Deferred tax liabilities as at 31 December (net)
2983
6499
64185
4306
62972
2026
1893
1414
1293
423
34146
97118
39861
39438
At year-end the cumulative deferred taxes recognised directly in equity
22. Provisions
amounted to CHF 3.5 million (2010: CHF 3.0 million). They arise largely
Employee
benefits
2011
Direct
costs
2011
Other
2011
Total
2011
Total
2010
Provisions as at 1 January
13600
3418
1190
18208
19022
Additions
Used
Released
Acquisitions
Provisions as at 31 December
2219
2236
1137
1083
183
13346
263
126
784
0
34
2737
13
17
501
3244
193
3736
2495
2379
2422
4327
410
19819
2917
1449
1198
557
1641
18208
CHF 1000
23. deferred Taxes
Deferred tax assets

Deferred tax liabilities
The fair-value reserves relate to financial assets available for sale.
The provisions for employee benefits relate to defined benefit retirement

plans, termination benefits to be paid out in accordance with the law
and other retirement benefit obligations.
Provisions for direct costs include amounts payable to service providers
which are uncertain as to their due dates or size.
02 Financial Report
from the positive and negative current market values of the currency
and fuel price hedging contracts classified as cash flow hedges.
Deferred taxes are derived from the following statement of financial
position items:
CHF 1000
Current assets
Other non-current assets
Accrued expenses and provisions
Deferred taxes deriving from timing differences
Netting of deferred taxes within each Group company
Deferred taxes deriving from timing differences (net)
Tax effect on undistributed retained earnings of subsidiaries
Deferred taxes on recognised tax loss carry-forwards
Total
210 | 211
Deferred tax
assets
31 Dec 2011
Deferred tax
liabilities
31 Dec 2011
Deferred tax
assets
31 Dec 2010
Deferred tax
liabilities
31 Dec 2010
1405
4825
73
14501
20804
8227
4225
81523
2662
96637
856
2349
29
15225
18459
7056
5452
24934
2441
39883
12019
8785
12019
84618
10748
7711
10748
29135
12500
25361
34146
97118
10303
32150
39861
39438
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In addition to other terms and conditions, the syndicated credit facility
24. Financial Debts
CHF 1000
Bond
Bank debts
Other
Total
Of which:
Current financial debts
Non-current financial debts
31 Dec 2011
31 Dec 2010
199124
110081
254
309459
198644
55633
1381
255658
11391
298068
11761
243897
Kuoni Travel Holding Ltd. issued a CHF 200 million bond at an annual
interest rate of 3% in October 2009. The bond was issued at 100.309%.
contains covenants relating to the degree of indebtedness (ratio of

financial debt to EBITDA) and to equity (minimum consolidated equity).
Additional customary market terms and conditions also apply.
Maximum indebtedness may not exceed three times the EBITDA amount.
The outstanding bond issue is subject to the usual cross-default
clause, under which the outstanding bond amount(s) may become due
for payment if repayment of the syndicated credit amount is demanded
owing to non-observance of the credit terms and conditions. These credit
terms and conditions were being observed on the balance sheet date.
Financial debts are due as follows:
The bond has a duration of four years and matures on 28 October 2013.
CHF 1000
The effective interest rate applied is 3.27%. The bond had a market value
Statement of financial position value

Contractual cash flows
Up to 6 months
7 to 12 months
1 to 2 years
2 to 5 years
Over 5 years
of 102.35% at year-end (stock exchange price on 31 December). Bank debts

consist of mortgages on properties and subsidiaries bank overdrafts.
Liabilities towards credit institutions include mortgages on properties
and bank accounts of subsidiaries with a negative balance on the balance
31 Dec 2011
31 Dec 2010
309459
334923
14706
5623
207976
98570
8048
255658
283186
14506
6345
17892
218376
26067
31 Dec 2011
31 Dec 2010
300456
8637
366
309459
243644
10086
1928
255658
sheet date, together with the syndicated credit facility concluded in 2011.
Financial debts are denominated in the following currencies:
Syndicated credit facility
The Kuoni Group has access to a CHF 350 million syndicated credit
facility which was established in March 2011 to part-finance the acquisition of Gullivers Travel Associates, London. Kuoni Travel Holding Ltd.,
Zurich is the liable party. The credit facility is of five years duration and
CHF 1000
CHF
EUR
Other
Total
will be terminated on 30 June 2016. A total of CHF 70 million was utilised

thereof as of 31 December 2011. The maximum credit amount under
the facility will be reduced by CHF 47 million a year from 30 June 2013
onwards. The interest payable is based on the LIBOR rate plus a margin
of between 1.00% and 2.25%.
02 Financial Report
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Risks are assessed by conducting interviews with management members
Average interest rates were:

2011
2010
2.8%
3.3%
2.9%
3.8%
CHF
EUR
and further key personnel. The associated risk scenarios are then
developed on the basis of these and further considerations, including
corporate goals and strategies. Kuonis groupwide risk management
covers 17 top Group-level risks. Beyond these, three to five specific top
risks are managed and monitored for each division and for the
most important business units.
25. Accounts Payable and Accrued Expenses
Within the Internal Control System (ICS), the corresponding processes

The reported amount contains taxes owed but not yet paid amounting to
CHF 28.2 million (2010: CHF 8.5 million).
had those specific risks systematically monitored which are relevant

to the annual accounting process in terms of their incorrect or fraudulent
reporting potential. The key controls derived from these were imple-
26. Risk Management
mented where they were not already fully in place, and documented.
Procedures have also been defined to monitor and assess the existence
The Board of Directors and the management have maintained a risk
of internal controls.
management process under which a report is compiled every six months

on Kuonis present risk exposure and the current status of defined
risk-reducing actions and activities. The probabilities of such risks
occurring and the anticipated impact of the risk scenarios analysed also
form part of this semi-annual risk management reporting. The Kuoni
risk management process further extends to quarterly reporting on any
newly identified risk scenario or changed risk assessment.
02 Financial Report
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27. Financial Risk Management
Liquidity Risk
and Derivative Financial Instruments
Liquidity risk is the risk that the Kuoni Group may be unable to meet its financial
The table below shows the financial instruments held by the Kuoni Group.
its liquidity to keep it at adequate levels, with monthly reports to the Group
Derivative financial instruments
CHF 1000
Loans,
receivables
and payables
at amortised
cost
Executive Board. This is done partly by maintaining liquidity reserves, to even out
the usual fluctuations in liquidity levels and needs. Kuoni also has unutilised
Availablefor-sale
At fair value
through profit
and loss
Used as cash
flow hedges
Other
Total
carrying
amount2
credit facilities to cope with any major liquidity fluctuations. These unused credit
facilities totalled CHF 351 million on 31 December 2011 and are available for
loans, overdrafts and hedging activities. The facilities are spread among several
31 Dec 2011
Time deposits
Total financial instruments assets
obligations when these become due for payment. Kuoni permanently monitors
banks, to avoid excessive dependence on a single banking institution. The due

23254
288861
86874
327531
726520
244
244
18775
1997
1997
30726
30726
6680
25455
42273
288861
86874
366934
784942
28218
28218
309459
306881
618307
1234647
dates of the financial debts held are shown in note 24. The other financial instruments held (accounts payable and accrued expenses) are all payable within
six months.
Financial debts
Accounts payable
Accrued expenses
Total financial instruments liabilities
309459
285505
590089
1185053
4015
17361
4015
17361
Credit Risk
Exposure to credit risk is monitored on an ongoing basis and covered by appropriate value adjustments on accounts receivable and prepayments made (see note 20).
Credit risks are limited because the customer base of the Kuoni Group consists
31 Dec 2010
of a large number of customers spread over a wide range of geographical regions.

Time deposits
Total financial instruments assets
23900
587898
86368
177576
875742
Financial debts
Accounts payable
Accrued expenses
Total financial instruments liabilities
255658
182987
350140
788785
257
257
18112
1370
1370
26361
26361
13588
37991
13588
37991
1 The Other position shows items to which the

provisions of IAS 39 do not apply.
4787
22899
42269
587898
86368
210094
926629
8531
8531
255658
234566
358671
848895
2 The fair values of the financial instruments do not

deviate substantially from their carrying amounts.
There are no risk concentrations.

The counterparties to derivative financial instruments and cash are carefully
selected financial institutions. Given their high credit ratings, the Kuoni Group
does not expect any counterparty to fail to meet its obligations. The maximum
exposure to credit risk is represented by the carrying amount of each financial
asset.
Interest Rate Risk
In the normal course of its business, the Kuoni Group is exposed to liqui-
The Kuoni Group is exposed to interest rate risk as a result of movements in
dity, credit and market risks (interest rate and currency risks). To manage
interest rates in the capital market. Generally, all non-current financial liabilities
these risks, various derivative financial instruments are used. While
have fixed interest rates. Consequently, changes in interest rates can result in
these are subject to the risk of market rates changing subsequent to their
fluctuations in the fair value of such financial liabilities. This would not have any
acquisition, such changes are generally offset by opposite effects on
impact on the net result or future cash flows, however. The fair values of financial
the items being hedged.
liabilities do not differ significantly from their carrying amounts on the balance
sheet date. No corresponding derivatives are outstanding on the balance sheet
date.
02 Financial Report
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Cash flow sensitivity analysis for financial instruments with variable
cash flow hedges are expected to be removed from equity within 12 months.
interest rates: a one percentage point increase in the interest rate
Changes in the fair value of forward exchange contracts, currency options
applicable would have reduced the net result by CHF 3.8 million. A one
and swaps that economically hedge monetary assets and liabilities in
percentage point reduction in the interest rate applicable would have
foreign currencies and for which no hedge accounting is applied are
increased the net result by the same amount. This analysis is based on the
recognised in the income statement. Both the changes in fair value of the
assumption that all other influencing factors remain unchanged.
forward contracts and the foreign exchange gains and losses relating
to the monetary items are reported under direct costs.
Foreign Currency Risk
Derivative Financial Instruments
The Kuoni Group incurs foreign currency risk primarily on purchases and
borrowings denominated in a currency other than the functional
currency of the subsidiary concerned. A further foreign currency risk of
CHF 1000
smaller significance derives from the amount of turnover denominated
Cash flow hedges

Currency-related forward contracts,
swaps and options
Commodity options (aviation fuel)
Other derivative financial instruments
Currency-related forward contracts,
swaps and options
Total
in a currency other than the measurement currency of the subsidiary

concerned. On a consolidated basis, the Group is also exposed to currency
fluctuations between the Swiss franc and the local measurement cur
rencies of its subsidiaries. The major currencies giving rise to currency
risk for the Kuoni Group are the euro, the pound sterling, the Swedish
Positive
fair values
31 Dec 2011
Negative
fair values
31 Dec 2011
Contract
values
31 Dec 2011
Positive
fair values
31 Dec 2010
Negative
fair values
31 Dec 2010
Contract
values
31 Dec 2010
28914
1812
16537
824
855340
46058
22668
3693
37991
0
1027720
34877
1997
32723
4015
21376
288224
1189622
1370
27731
13588
51579
267186
1329783
krona and the US dollar.

The fair value is the (higher or lower) value at which a derivative contract
Foreign currency risks are monitored within the Kuoni Group in accord-
could be concluded on the balance sheet date. The fair values calculated
ance with specified guidelines. These guidelines contain principles on
on the balance sheet date should be looked at not in isolation but together
risk limits, the forms of hedging instruments permitted and the relevant
with the calculated value of anticipated future transactions and hence in
risk monitoring processes. The guidelines prohibit on principle the use
the context of the aggregate reduction in the Groups exposure to cur-
of derivative financial instruments for speculative purposes. The enforce-
rency movements. Positive or negative fair values of derivative financial
ment of these guidelines and general risk management are provided
instruments are carried on the statement of financial position under
by the Kuoni Groups treasury units in the form of a hedging strategy.
accounts receivable or accounts payable.
Monthly reports are submitted to the Group Executive Board on the

current risk situation.
The Kuoni Group uses forward exchange contracts and currency options
Derivative financial instruments by currency:
to hedge its foreign currency risk. Most hedging contracts have maturi-
CHF 1000
ties of up to 12 months. Where necessary, the forward exchange contracts
EUR
USD
THB
Other currencies
Commodity options (aviation fuel)
Total
are rolled over at maturity. The Kuoni Group does not hedge against
the foreign currency risks associated with its net investment in foreign
entities or the related foreign currency translation of local earnings.
Positive
fair values
31 Dec 2011
Negative
fair values
31 Dec 2011
Contract
values
31 Dec 2011
Positive
fair values
31 Dec 2010
Negative
fair values
31 Dec 2010
Contract
values
31 Dec 2010
7295
16792
827
5997
1812
32723
11685
5060
324
3483
824
21376
493550
327643
40737
281634
46058
1189622
4690
8209
638
10501
3693
27731
25766
20390
609
4814
0
51579
529204
404661
40065
320976
34877
1329783
The currency hedging contracts outstanding at year-end are summarised

in the following table. Gains and losses on hedge contracts qualifying as
02 Financial Report
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The table below shows the currency risk deriving from financial instru-
Maturities of derivative financial instruments:
CHF 1000
Up to 6 months
7 to 12 months
1 to 2 years
2 to 3 years
Total
Positive
fair values
31 Dec 2011
Negative
fair values
31 Dec 2011
Contract
values
31 Dec 2011
Positive
fair values
31 Dec 2010
Negative
fair values
31 Dec 2010
Contract
values
31 Dec 2010
15572
12508
4643
0
32723
9329
8357
3690
0
21376
672098
393114
124410
0
1189622
11167
12482
4082
0
27731
26867
19867
4845
0
51579
703782
499380
126621
0
1329783
The table below shows the financial instruments used, valued at their
fair market values and using their valuation method.
The levels are defined as follows:
Level 1: Current market value in an active market of an identical
financial instrument.
Level 2: Current market value in an active market of a similar financial
instrument or a valuation method whose prime input factors are not
based on observable market data.
Level 3: Valuation method whose prime input factors are not based on
observable market data.
ments whose currency differs from the functional currency of the

subsidiary holding the instrument concerned:
In million
foreign currency
USD
31 Dec 2011
EUR
31 Dec 2011
THB
31 Dec 2011
USD
31 Dec 2010
EUR
31 Dec 2010
THB
31 Dec 2010
0.2
3.2
18.3
0.0
43.2
8.0
8.2
6.3
74.8
0.1
0.2
22.6
0.0
48.3
14.5
11.8
19.1
78.4
0.0
0.0
31.2
0.0
5.2
22.2
78.6
0.0
137.2
0.9
3.0
25.1
0.8
14.6
8.9
7.5
0.0
60.8
0.1
0.3
25.4
0.0
21.1
8.0
13.2
5.0
63.1
0.0
0.0
35.3
0.0
0.2
0.4
140.9
0.0
176.8
0.0
16.9
23.5
69.6
2.0
46.3
65.7
35.8
39.1
56.9
41.6
1.6
49.2
125.8
0.0
73.9
64.6
199.8
0.0
232.9
105.4
0.1
15.6
14.2
42.5
2.4
44.3
30.5
31.5
24.8
4.0
27.3
1.3
27.2
61.7
0.0
99.0
21.2
224.4
0.0
311.4
33.2
9.1
47.4
31.8
30.3
1.4
143.6
45.0
384.2
339.2
33.4
384.6
351.2
0.0
1959.4
1959.4
31.5
410.0
378.5
13.7
389.0
375.3
0.0
1697.9
1697.9
Foreign currency hedges
277.8
278.5
1005.2
273.5
286.4
926.7
Net exposure
52.3
120.1
922.4
74.7
87.5
627.6
Intercompany loans
Time deposits
Accounts receivable 3rd party
Accounts receivable intercompany
Prepaid expenses
Less assets hedged (fair value hedge)
Assets exposure
Intercompany loans
Accounts payable 3rd party
Accounts payable intercompany
Accrued expenses
Less liabilities hedged (fair value hedge)
Liabilities exposure
Net balance sheet exposure
Estimated forecast sales
Estimated forecast purchases
Gross estimated forecast exposure
CHF 1000
31 Dec 2011
Level 1
Level 2
Level 3
Total
Derivative financial assets

Total financial assets
0
0
0
32723
0
32723
0
0
0
32723
0
32723
Derivative financial liabilities

Other financial liabilities
Total financial liabilities
0
0
0
21376
0
21376
0
0
0
21376
0
21376
Level 1
Level 2
Level 3
Total
Derivative financial assets

Total financial assets
0
0
0
27731
0
27731
0
0
0
27731
0
27731
variables (and interest rates in particular) remained unchanged. The
Derivative financial liabilities

Other financial liabilities
Total financial liabilities
0
0
0
51579
0
51579
0
0
0
51579
0
51579
bought and sold within the business year to which the provisions of
31 Dec 2010
02 Financial Report
A change in the foreign-currency positions shown at year-end as a result

of a 5% or 3% change in currency exchange rates would have increased
or decreased consolidated equity and the net Group result by the amounts
shown below. This analysis is based on the assumption that all other
consolidated income statement may also be substantially affected by any
changes in currency exchange rates relating to financial instruments
IFRS 7 do not apply.
220 | 221
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Foreign-currency Sensitivity Analysis
Nominal currency USD

+/ 5%
CHF million
functional currency
>>
Nominal currency EUR

+/ 3%
Nominal currency THB

+/ 5%
Equity
Income
Statement
Equity
Income
Statement
Equity
Income
Statement
1.3
2.6
4.8
1.5
0.2
0.1
0.2
0.1
0.4
0.5
6.4
n.a.
0.6
0.1
0.1
n.a.
0.1
0.1
0.8
0.2
0.1
0.0
0.1
0.0
31 Dec 2011
CHF
GBP
SEK
EUR
28. Free Cash Flow
CHF 1000
Cash flow from operating activities
Purchase of tangible fixed assets
Purchase of other intangible assets
Disposal of tangible fixed assets
Free cash flow
2011
2010
101125
36035
21157
1889
45822
117008
25414
17930
1907
75571
2011
2010
2249
11881
29082
4070
8978
14701
29. Additional Information on the Statement of Cash Flows
CHF 1000
31 Dec 2010
CHF
GBP
SEK
EUR
1.7
2.7
5.3
2.9
0.4
0.2
0.2
0.0
2.6
0.6
6.7
n.a.
0.3
0.2
0.2
n.a.
0.1
0.2
0.7
0.1
0.0
0.0
0.2
0.0
Interest received
Interest paid
Income taxes paid
These three positions are included in cash flow from operating activities.
02 Financial Report
222 | 223
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30. Related Parties
>>
Group Executive Board and Board of Directors
Compensation
Related parties are directors and Group Executive Board members

(together with members of their families), major shareholders and
The total compensation (including employers contributions to social
companies controlled by these parties, associates and pension plans.
security and pension funds) paid to members of the Group Executive
Transactions with related parties are priced on an arms length basis.
Board and the Board of Directors, which is included in personnel expense

consisted of:
Apart from the compensation paid to the Board of Directors and the
Group Executive Board
Group Executive Board and the ordinary contributions to occupational

pension plans, there were no significant transactions with related
parties in 2011.
The Kuoni and Hugentobler-Foundation received a (gross) dividend of
Board of Directors
Total
CHF million
2011
2010
2011
2010
2011
2010
Short-term employee benefits

Post-employment benefits
Termination benefits
Share-based payments
Total
4.5
0.8
0.0
0.1
5.2
5.2
0.8
0.0
4.3
10.3
0.9
0.1
0.0
0.7
1.7
0.9
0.1
0.0
0.7
1.7
5.4
0.9
0.0
0.6
6.9
6.1
0.9
0.0
5.0
12.0
CHF 0.5 million on the basis of its shareholding.

The compensation paid to and shares held by members of the Board of
Associates
Directors and the Group Executive Board are shown in detail on pages
246 to 249 of the financial statements of Kuoni Travel Holding Ltd., in
All transactions with associates are priced on an arms length basis. The
compliance with Swiss law.
Kuoni Group made sales to associates totalling CHF 1.1 million in 2011
(2010: CHF 1.3 million), while, as last year, no purchases were made from
associates. For receivables outstanding, please see notes 16 and 20.
As in the previous year, no profits were distributed by associates in 2011.
Pension Plans
The transactions between the Kuoni Group and the various defined
benefits pension plans for its employees are shown in note 6. As in the
previous year, the Kuoni Group currently has no liabilities towards
these pension plans.
02 Financial Report
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>>
31. Contingent LiabilitiEs, Assets Pledged
CHF 1000
Contingent liabilities
Assets pledged
33. Post-Year-End Events
31 Dec 2011
31 Dec 2010
The consolidated financial statements of the Kuoni Group were approved
0
73948
0
76692
and released for publication by the Board of Directors on 15 March 2012.

The Board of Directors also resolved on the same date to propose to the
General Meeting of Shareholders that shareholders receive a withholding
The assets pledged were used to secure bank loans with mortgage
tax-free appropriation from the newly created capital contribution
collateral.
reserve of CHF 0.60 per registered share A and CHF 3.00 per registered
share B for the 2011 financial year. The final approval of the above is
32. Leasing Liabilities
subject to the General Meeting of Shareholders of 17 April 2012.
Financial Leases
No events have occurred since 31 December 2011 that would necessitate

an adjustment to the carrying amounts of the Groups assets and
As in the prior year, there are no finance leasing liabilities.
liabilities.
Operating Leases
This position mainly relates to leasing liabilities of Novair for certain

aircraft and to lease contracts for buildings.
CHF 1000
Liabilities payable up to 1 year
Liabilities payable 1 to 5 years
Liabilities payable over 5 years
Total leasing liabilities not recognised in the statement of financial position
Amount recognised in the income statement in current year
02 Financial Report
31 Dec 2011
31 Dec 2010
59426
117113
9201
185740
50379
119923
14340
184642
71014
67210
226 | 227
Being at one
with all of nature.
fig. 6:
A network of trails caused by migrating elephants criss-crosses the green grasses of Lake Amboseli in Kenya.
228 | 229
02_04_08_
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Principal Subsidiaries and Associates
02_04_08_01_
>>
Europe
Activity
Currency
Paid-in
share capital
Investment in %
Consolidation
T/D
T
C
C
CHF
CHF
CHF
CHF
7000000
1600000
1000000
6000000
100
93
100
100
C
C
C
C
Austria
Kuoni Destination Management Ges.m.b.H., Vienna
EUR
253000
100
Belgium
Kuoni Travel Belgium B.V. B.A., Gent
EUR
7335000
100
Denmark
Kuoni Scandinavia Danmark, Copenhagen
Kuoni Destination Management A/S, Copenhagen
Falk Lauritsen Rejser A/S, Herning
T
D
T
DKK
DKK
DKK
0
600000
500000
100
100
100
C
C
C
Switzerland
Kuoni Reisen AG, Zurich
Railtour Suisse SA, Berne
KIT Solution AG, Zurich
Kuoni Immobilien AG, Zurich
France
Voyages Kuoni S.A., Paris
T/D
EUR
507000
100
Hungary
Kuoni Destination Management Kft., Budapest
HUF
3000000
100
Italy
Kuoni Italia S.p.A., Genoa
Kuoni Destination Management S.p.A., Rome
Octopus Travel Italia SRL, Rome
T
D
D
EUR
EUR
EUR
8400000
1548000
20000
100
100
100
C
C
C
The Netherlands
Kuoni Travel Nederland B.V., Amsterdam
Kuoni Destination Management B.V., Amsterdam
Kuoni Specialists B.V., Amsterdam
T
D
T
EUR
EUR
EUR
02 Financial Report
13230000
55815
20418
100
100
100
Activity
Currency
Paid-in
share capital
Investment in %
Consolidation
Norway
Kuoni Scandinavia Norway, Oslo
NOK
100
Russia
UTE Megapolus Group Co. Ltd., Moscow
RUB
186000
92
Spain
Viajes Kuoni S.A., Madrid
Kuoni Destination Management S.L., Madrid
Sotavento S.A., Fuerteventura
Gullivers Travel Associates S.A., Madrid
T
D
T
D
EUR
EUR
EUR
EUR
2614600
150000
3060000
420708
100
100
100
100
C
C
C
C
Sweden
Kuoni Scandinavia AB, Stockholm
Nova Airlines AB, Stockholm
T
T
SEK
SEK
23000000
15000000
100
100
C
C
T/D
T
T
T
T
T
D
D
D
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
1500000
650000
70000
4442000
100
139000
177194
10000
50000
100
100
100
100
100
100
100
100
100
C
C
C
C
C
C
C
C
C
United Kingdom
Kuoni Travel Ltd., Dorking
CV Travel Holdings Ltd., London
Holiday Supplies Ltd., Liverpool
Kirker Holdings Ltd., London
Voyages Jules Verne Ltd., London
Carrier Ltd., Cheshire
Donvand Ltd., London
GTA travel.com Ltd., London
Octopus Travel.com Limited, London
C
C
C
230 | 231
Activity:
Consolidation:
T Tour Operating Business

D Destination Management Services
C Corporate
C Consolidated
E Valuation according to equity method
02_04_08_
K u o n i G R OUP
>>
02_04_08_02_
Australia
Australian Tours Management Pty Ltd., Melbourne
GTA Australasia Pty Limited, Sydney
Octopus Travel.com (Australia) Pty Limited, Sydney
China
Kuoni Travel (China) Ltd., Hong Kong
S.K.Y. Business Consultancy Co. Ltd., Shanghai
Et-china.com International
Holdings Ltd., Guangzhou
Kuoni Travel (China) Ltd., Beijing
Gullivers Travel Associates (Hong
Kong) Limited, Kowloon
Gullivers (Beijing) Commercial Consulting
Services (China), Beijing
Gullivers Travel Associates (China) Limited, Beijing
>>
Overseas
Activity
Currency
Paid-in
share capital
Investment in %
Consolidation
D
D
D
AUD
AUD
AUD
500000
100000
50000
100
100
100
C
C
C
T
D
HKD
CNY
4800000
1198115
100
100
C
C
T
D
CNY
CNY
0
0
30
100
E
C
HKD
3064000
100
D
D
USD
CNY
250000
4000000
100
100
C
C
D
D
AED
AED
300000
1725000
80
100
C
C
AED
1000
100
T/D
T
T
INR
INR
INR
83600000
8450000
283670000
100
100
100
C
C
C
Japan
Kuoni Travel (Japan) Ltd., Tokyo
Gullivers Travel Agency co Ltd (Japan), Tokyo
Octopus Travel.com Japan KK, Tokyo
D
D
D
JPY
JPY
JPY
50000000
40000000
10000000
100
100
100
C
C
C
Kenya
Private Safaris (E.A.) Ltd., Nairobi
KES
62500000
100
Mauritius
Kuoni Asian Investments (Mauritius) Ltd., Port Louis
VF Worldwide Holdings Ltd., Port Louis
C
T
USD
GBP
1000000
4303000
100
100
C
C
Nepal
Sita World Travel (Nepal) Pvt. Ltd., Kathmandu
NPR
2250000
63
Dubai
Desert Adventures Tourism LLC, Dubai
Gulf Dunes LLC, Dubai
Gullivers Travel Associates Middle
East FZ LLC, Dubai
India
Kuoni Travel (India) Pvt. Ltd., Mumbai
Kuoni Business Travel India Pvt. Ltd., Delhi
VFS Global Services Pvt. Ltd., Mumbai
02 Financial Report
Activity
Currency
Paid-in
share capital
Investment in %
Consolidation
SGD
100000
100
SGD
100000
100
South Africa
Kuoni Private Safaris (Pty) Ltd., Cape Town
ZAR
500000
100
South Korea
Kuoni Travel (Korea) Ltd., Seoul
Gullivers Travel Associates Korea Limited, Seoul
D
D
KRW
KRW
100000000
350000000
100
100
C
C
Sri Lanka
Sita World Travel (Lanka) Pvt. Ltd., Colombo
LKR
2500000
76
Taiwan
Gullivers Travel Associates (Taiwan) Limited, Taipei
TWD
6000000
100
Thailand
Asian Trails Ltd., Bangkok
Kuonissimo (Thailand) Ltd., Bangkok
D
D
THB
THB
24000000
2451000
49
49
C
C
United States
AlliedTPro, Inc., New York
Kuoni Travel (Atlanta) Inc., Atlanta
Kuoni Holding Delaware, Inc., Wilmington
GTA Americas LLC, Delaware
Octopus Travel.com (USA) Limited, Delaware
D
D
C
D
D
USD
USD
USD
USD
USD
170000
50000
1
29700000
1000
100
100
100
100
100
C
C
C
C
C
Singapore
Kuoni Travel (S) PTE Ltd., Singapore
Gullivers Travel Associates (Singapore)
Pte Limited, Singapore
232 | 233
Activity:
Consolidation:
T Tour Operating Business

D Destination Management Services
C Corporate
C Consolidated
E Valuation according to equity method
02_04_09_
K u o n i G R OUP
>>
Report of the Statutory Auditor on the Consolidated
require that we plan and perform the audit to
Financial Statements to the General Meeting of
obtain reasonable assurance whether the consolidated
Shareholders of Kuoni Travel Holding Ltd., Zurich.
financial statements are free from material miss-
We confirm that we meet the legal requirements on
tatement.
licensing according to the Auditor Oversight Act (AOA)
Report on Other Legal Requirements
and independence (article 728 CO and article 11 AOA)
As statutory auditor, we have audited the accompanyAn audit involves performing procedures to obtain
and that there are no circumstances incompatible
Holding Ltd., presented on pages 167 to 233, which
audit evidence about the amounts and disclosures
with our independence.
ing consolidated financial statements of Kuoni Travel

comprise the statement of financial position, income
in the consolidated financial statements. The proce-
statement, statement of comprehensive income,
dures selected depend on the auditors judgment,
In accordance with article 728a paragraph 1 item 3 CO
statement of changes in equity, statement of cash flows
including the assessment of the risks of material
and Swiss Auditing Standard 890, we confirm that
and notes for the year ended 31 December 2011.
misstatement of the consolidated financial statements,
an internal control system exists, which has been
whether due to fraud or error. In making those risk
designed for the preparation of consolidated financial
assessments, the auditor considers the internal control
statements according to the instructions of the board
system relevant to the entitys preparation and fair
of directors.
Board of Directors Responsibility
The board of directors is responsible for the prepara-
presentation of the consolidated financial statements
tion and fair presentation of the consolidated financial
in order to design audit procedures that are appro
We recommend that the consolidated financial
statements in accordance with International Financial
priate in the circumstances, but not for the purpose of
statements submitted to you be approved.
Reporting Standards (IFRS) and the requirements
expressing an opinion on the effectiveness of the
of Swiss law. This responsibility includes designing,
entitys internal control system. An audit also includes
implementing and maintaining an internal control
evaluating the appropriateness of the accounting
system relevant to the preparation and fair presentation
policies used and the reasonableness of accounting
KPMG AG
of consolidated financial statements that are free
estimates made, as well as evaluating the overall
from material misstatement, whether due to fraud or
presentation of the consolidated financial statements.
Martin Schaad
error. The board of directors is further responsible
We believe that the audit evidence we have obtained
Licensed Audit Expert
for selecting and applying appropriate accounting
is sufficient and appropriate to provide a basis for our
Auditor in Charge
policies and making accounting estimates that are
audit opinion.
reasonable in the circumstances.
Opinion
Auditors Responsibility
In our opinion, the consolidated financial statements
Ivano Castagna
Our responsibility is to express an opinion on these
for the year ended 31 December 2011 give a true
consolidated financial statements based on our audit.
and fair view of the financial position, the results of
We conducted our audit in accordance with Swiss
operations and the cash flows in accordance with
law and Swiss Auditing Standards as well as Interna-
International Financial Reporting Standards (IFRS)
tional Standards on Auditing. Those standards
and comply with Swiss law.
02 Financial Report
Zurich, 15 March 2012
234 | 235
Finding ourselves
in the depths of space.
fig. 7:
The frozen dunes of Victoria Valley raked by strong downslope winds in the Dry Valley region of Antarctica.
236 | 237
02_05_
Kuoni traveL hoLding Ltd.
02_05_01_
Statement of financial PoSition
Assets CHF
Non-current assets
Investment in subsidiaries
Loans to group companies
Loans to third parties
Land and building
Total non-current assets
Current assets
Securities
Accounts receivable
from third parties
from group companies
Prepaid expenses
Total current assets
Notes
31 Dec 2011
31 Dec 2010
(6)
489 896 212

960 062 190
1 242 340
145 895
32.6
63.7
0.1
0.0
490 709 826

383 769 388
2 365 950
235 895
45.4
35.5
0.2
0.0
(2)
(2)
4 460 000
1
1 455 806 638
0.3
0.0
96.7
4 460 000
1
881 541 060
0.4
0.0
81.5
897 250
20 167 750
0.1
1.2
183 571 987

8 674 450
17.0
0.8
60 807
6 876 543
20 370 454
48 372 804
0.0
0.6
1.4
3.3
205 253
4 721 747
1 380 680
198 554 117
0.0
0.5
0.2
18.5
1 504 179 442
100.0
1 080 095 177
100.0
Notes
31 Dec 2010
31 Dec 2010
(7)
3 998 400
0.3
3 046 400
0.3
(8)
(9)
8 000 000
58 700 077
379 855 161
20 167 750
0.5
3.9
25.2
1.3
8 000 000
61 265 966
111 792 427
8 674 450
0.7
5.7
10.3
0.8
(8)
376 832 250

0
25.1
0.0
366 102 673

10 222 877
33.9
1.0
(7)
1 177 433
11 679 501
860 410 572
0.1
0.8
57.2
1 975 049
21 425 261
592 505 103
0.2
2.0
54.9
239 227 000

200 000 000
150 118 521
15.9
13.3
10.0
239 223 000

200 000 000
0
22.1
18.5
1 422 598
35 276 687
17 724 064
643 768 870
0.1
2.3
1.2
42.8
1 789 190
19 832 581
26 745 303
487 590 074
0.2
1.8
2.5
45.1
1 504 179 442
100.0
1 080 095 177
100.0
(9)
Total assets
Equity and liabilities CHF

Equity
Share capital
Legal reserves
General reserve
Share premium reserve
Reserve from capital contribution
Reserve for treasury shares
Other reserves
Free reserve
Other reserve from capital contribution
Retained earnings
Profit carried forward
Net result
Total equity
Liabilities
Provisions
Bond
Bank loans
Accounts payable
to third parties
to group companies
Accrued expenses
Total liabilities
Total equity and liabilities
02 FinAnciAl RepoRt
238 | 239
K u o n i t R Av e l
holding ltd.
(11)
02_05_02_
02_05_03_
Income Statement
CHF
Income
Financial income
Income from investments in subsidiaries
Other operating income
Total income
Notes
Notes
2011
2010
(3)
(4)
17225475
46563904
721858
64511237
1870485
61906030
1752352
65528867
K u o n i t rav e l
holding ltd.
Introduction
In legal terms, Kuoni shareholders are shareholders of Kuoni Travel

Holding Ltd., Zurich, which controls the subsidiaries listed at the
end of the consolidated accounts. From an economic standpoint,
the shareholders of Kuoni Travel Holding Ltd. are invested in the entire
Expenses
Personnel expense
Administrative expense
Expenses related to investments in subsidiaries
Other expenses
Depreciation
Financial expense
Income taxes
Total expenses
(5)
Net result
13427414
6969962
8738560
7380125
0
15800136
515539
52831736
19479389
9814609
4322420
136400
0
9980343
370445
44103606
11679501
21425261
Group, so the consolidated accounts are of primary importance. The

accounts of Kuoni Travel Holding Ltd. are conform with Swiss company law.
1. Contingent Liabilities, Assets Pledged
CHF
Contingent liabilities
Assets pledged
31 Dec 2011
31 Dec 2010
375929871
0
432960142
0
31 Dec 2011
31 Dec 2010
10157000
914000
9853200
581000
Contingent liabilities consist of sureties and guarantees for consolidated

subsidiaries.
2. Fire Insurance Values
CHF
Buildings
3. Financial Income
The financial income derives largely from interest on investments.
4. Income from Investment in Subsidiaries
The income from investment in subsidiaries consists of dividends received

as well as income from the sale of subsidiaries. As in the prior year, all
wholly owned subsidiaries were charged management fees to cover Group
overheads.
02 Financial Report
240 | 241
02_05_03_
K u o n i t rav e l
holding ltd.
>>
Notes
>>
Notes
The share capital is composed as follows:
5. Expenses Related to Investment in Subsidiaries
This item relates to support given to subsidiaries as well as to currency-
CHF
related value adjustments and provisions. Where necessary, losses
1249500 registered shares A CHF 0.20 nominal value

3748500 registered shares B CHF 1.00 nominal value
Total share capital
incurred by subsidiaries were offset by direct subsidies or appropriate

allocations were made to provisions earmarked for that purpose.
6. Investment in Subsidiaries
31 Dec 2011
249900
3748500
3998400
Conditional Capital
We refer to the information on principal subsidiaries and associates on
Conditional capital issuable via the exercise of conversion rights and/
pages 230 to 233 of the Financial Report.
or warrants linked to bonds or similar debt issued by Kuoni Travel

Holding Ltd. or any of its subsidiaries in the domestic or international
CHF
Equity as at 1 January 2009
capital markets and/or via the exercise of options granted to share
7. Equity
Share capital
Legal reserves
Other reserves
Retained earnings
Total equity
3046400
187512385
331804450
72755545
595118780
39000000
24806902
39000000
28631310
24806902
0
28631310
703848
758049
592756269
holders amounts to a maximum of CHF 384000, with a further maximum of CHF 96000 reserved for employee stock option plans.
Net result
Appropriation of retained earnings
Dividends
Equity as at 31 December 2009
Net result
Appropriation of retained earnings
Dividends
Net result
Appropriation of retained earnings1
Dividends
Capital increase
3046400
527298
628899
188668582
176550
129150
371110150
5000000
29931137
21425261
5000000
22956088
3046400
686793
377468
189732843
139800
75600
376325550
23400310
12000000
11679501
22222877
952000
3998400
10222877
7235672
7811079
266191861
466722988
1176450
12669750
376832250
12856934
Authorised Capital
The authorised capital of Kuoni Travel Holding Ltd. amounts to

CHF 571200 and is valid until 20 April 2013. The use of the authorised
capital is limited to the financing or refinancing of GTA Holdco Limited, GTA Americas LLC, Octopus Travel.com (USA) Limited and Colum-
21425261
0
22956088
826593
453068
592505103
bus Technology Developments Limited which was effected in 2011. The
11679501
0
7235672
8987529
254474111
860410572
20 April 2013.
1 Includes the resolution by the Annual General

Meeting regarding the reassignment of reserves
from Other reserve from capital contribution to
Legal reserve from capital contribution.
Board of Directors may not issue any new shares for any other purpose on
the basis of the authorised capital. The Board of Directors will delete
Article 3ter of the Articles of Incorporation of Kuoni Travel Holding Ltd.
relating to authorised capital upon the expiration of its validity on
Although the authorised capital of Kuoni Travel Holding Ltd. can

virtually no longer be used as a result of the above restriction,
the following information is still provided because it is required to be
included:
In accordance with Article 3ter of the Articles of Incorporation of Kuoni
Travel Holding Ltd., the Board of Directors is authorised to increase
share capital by up to CHF 571200 through the issue of a maximum of
178500 fully-paid-up registered shares A with a nominal value of
CHF 0.20 per share and a maximum of 535500 fully-paid-up registered
02 Financial Report
242 | 243
02_05_03_
K u o n i t rav e l
holding ltd.
>>
Notes
>>
Notes
shares B with a nominal value of CHF 1.00 per share at any time until
The overall amount held in reserves from capital contributions is
20 April 2013. Should it do so, the Board of Directors shall specify the issue
CHF 380 million, which is made up of the various types of contributions
amount, the type of contribution, the date of such issue and the com-
and share premiums less distributions recorded since 1 January 1997.
mencement of dividend entitlement. In the issue of any such shares, the
The Swiss Federal Tax Administration disputes reserves from capital
subscription rights of existing shareholders shall be granted in full. The
contributions of CHF 11.4 million. The increases 2011 have not yet been
Board of Directors may also issue such new registered shares through
assessed by the Federal Tax Administration. The remaining reserves
their firm acquisition by a bank or a third party and subsequent offering
from capital contributions of CHF 103.4 million have been confirmed by
to existing shareholders. The Board of Directors is empowered to deter-
the Federal Tax Administration.
mine the subscription price and the further subscription-right provisions. Should subscription rights not be exercised, the Board of Directors
9. Treasury Shares
may permit these to lapse, place them (and the corresponding shares)
on the market at market rates or use them in any other way in the interests
of the company. The exercising of contractually acquired subscription
rights and the subscription to and acquisition of the new registered
Share plan:
number of
registered
shares B
Book value
CHF 1000
shares, and any subsequent trannsfer thereof, are subject to Article 5 of
Held on 1 January 2010
177797
8890
the Articles of Incorporation of Kuoni Travel Holding Ltd. Every new
Purchase
Sale
Use
0
2796
1512
173489
0
140
76
8674
Purchase
Use
Capital increase
0
23529
46925
196885
0
1176
12670
20168
share entitles its holder to one vote.
Restricted Transferability Provisions
The Articles of Incorporation stipulate that no more than 3% of total

voting rights may be entered in the share register in the name of any one
shareholder.
Opting out/Opting up
Share Plan
There is no opting-out or opting-up clause in the Articles of Incorporation.

The remaining treasury shares held are reserved for the share purchase
plan of the Group Executive Board and management. The changes to
8. Reserves from capital contributionS
CHF
Legal reserve
from capital
contribution
Other reserve
from capital
contribution
Capital contribution as per 1.1.2011

Reclassification
Distribution
Increase from treasury shares
Increase from Capital increase
Capital contribution as per 31.12.2011
111792427
10222877
7235672
8987529
256088000
379855161
10222877
10222877
02 Financial Report
treasury shares reflect the registered shares B purchased by or issued to

Total
the Board of Directors, the Group Executive Board and management.
122015304
0
7235672
8987529
256088000
379855161
244 | 245
02_05_03_
K u o n i t rav e l
holding ltd.
>>
Notes
10. Principal Shareholders
>>
Notes
No compensation was paid in 2011 to members of the Board of Directors

who had left in the prior period or earlier. Kuoni Travel Holding Ltd.
We are aware of the following principal shareholders:

and its Group companies had not granted any collateral, loans, advances
or credits to members of the Board of Directors or to persons associated
with them as at 31 December 2011. No options were allocated in the year
under review.
Silchester International Investors Limited, London

1 Voting rights restricted to 3% in accordance with

Article 5 of the Articles of Incorporation of Kuoni
Travel Holding Ltd.
2 As per share register 31.12.2011 last notification
dated 9 December 2009, therefore no further details
on options.
3 As per share register 31.12.2010.
Federation of Migros Cooperatives, Zurich together with

Anlagestiftung der Migros Pensionskasse, Zurich
Pensionskasse der Globus-Unternehmen, Spreitenbach
Pictet Funds S.A., Geneva
31 December 2011: Voting rights less than 3%
11. Bond
Kuoni Travel Holding Ltd. issued a CHF 200 million 3% bond in

October 2009. The bond has a duration of four years and matures on
28 October 2013.
12. Related Parties
Basic cash
compensation
(fixed)
Social security
contributions
Total
CHF 1000
Number of shares
CHF 1000
CHF 1000
CHF 1000
2011
Henning Boysen, Chairman
Wolfgang Beeser
Heinz Karrer
John Lindquist
David Schnell
Annette Schmmel
Raymond D. Webster
Total
276
98
112
84
157
84
84
895
593
214
237
178
297
178
178
1875
210
76
84
63
105
63
63
664
30
9
13
10
0
10
10
82
516
183
209
157
262
157
157
1641
2010
Wolfgang Beeser
Heinz Karrer
John Lindquist
David Schnell
Annette Schmmel
Raymond D. Webster
Total
276
98
111
84
157
84
84
894
603
217
241
181
302
181
181
1906
210
76
84
63
105
63
63
664
31
9
13
10
0
10
10
83
517
183
208
157
262
157
157
1641
1 The shares were valued at a market value of

CHF 354 (2010: CHF 348). The market value calculated
includes a 16% discount in view of the shares
restricted availability at the time of their assignment.
In accordance with its shareholding, the Kuoni and Hugentobler

Foundation was awarded a dividend payment of CHF 0.5 million gross.
Share-based
compensation
(fixed)1
Compensation paid to the Group Executive Board
13. Compensation Paid
For their service in 2011, the members of the Group Executive Board
Compensation paid to members of the Board of Directors
received the compensation shown in the table below. The aggregate

compensation paid to the members of the Group Executive Board
For their service in 2011, the members of the Board of Directors received
in 2011amounted to CHF 7.8 million. The highest individual
the compensation shown in the table below. The aggregate compensation
total compensation paid in 2011 amounted to CHF 2.1 million.
paid to the members of the Board of Directors in 2011 amounted to

CHF 1.6 million (2010: CHF 1.6 million).
The presentation of the compensation paid to members of the Group

Executive Board was modified in the course of 2011. Whilst in previous
years the compensation stated was that actually paid in the business year
02 Financial Report
246 | 247
02_05_03_
K u o n i t rav e l
holding ltd.
>>
Notes
>>
Notes
concerned, from 2011 onwards the cash-form variable compensation
The compensation includes basic salaries for 2011 and variable bonus pay-
awarded for the year is also included using the accrual method, while the
ments for 2011. Share-based compensation includes the registered
share-based variable compensation is also included based on the shares
shares B allocated for 2011, which will be adjusted and paid out after a
assigned for the achievement of the corresponding targets in the business
three year performance assessment period. The registered shares B
year concerned. Figures for 2010 have been restated accordingly. The
paid on in the 2011 financial year on the basis of the 2008 share-based
change resulted in adjustments to the variable compensation and social
compensation are shown in footnote 3.
security contribution amounts.

2011
CHF 1000
Basic cash compensation (fixed)
Variable compensation:
in cash2
in shares3
Pension scheme contributions4
Social security contributions
Other compensation amounts
Total
2010
CHF 1000
in cash6
in shares7
Total
1 Five members.
2 The members of the Group Executive Board were paid
STI variable compensation in cash form of CHF 1.1 million
in 2011 for the prior-year period. The cash-form variable
compensation paid to CEO Peter Rothwell amounted to
CHF 0.4 million.
3 The members of the Group Executive Board were
assigned 8975 registered shares B in the 2011 business
year. These shares were valued at a market price of
CHF 292. The market value calculated includes a 23%
discount in view of the shares restricted availability at the
time of their assignment and an 8% discount in view of
the diluting effect of the capital increase. The share-based
compensation for 2011 will be awarded at the end of the
three-year reference period in spring 2014. A total of
3758 registered shares B (worth CHF 1.7 million) were
awarded to members of the present Group Executive
Board in 2011 from the share-based compensation
assigned in 2008. (Since CEO Peter Rothwell was not
appointed to the Group Executive Board until 2009,
he was not awarded any such shares in 2011.)
4 One member of the Group Executive Board is

entitled to take early retirement in accordance with the
regulations of the Patronale Frsorgestiftung. The noncontribution-based costs of the corresponding benefits
are included in the pension fund contributions shown.
The corresponding regulations have not been extended to
any new Group Executive Board member since 2005.
Group Executive
Board1
Of which:
Peter Rothwell
3234
900
659
2617
662
638
39
0
7849
232
714
110
114
6
0
2076
Group Executive
Board5
Of which:
Peter Rothwell
3742
900
1261
2047
528
397
28
0
8003
424
507
111
111
6
0
2059
An expenses payment of CHF 0.1 million was paid to a member of the

Group Executive Board who left the company in the prior period.
Otherwise, no payments were made in 2011 to members of the Group
Executive Board who left in the prior period or earlier. Kuoni Travel
Holding Ltd. and its Group companies had not granted any collateral,
loans, advances or credits to any members of the Group Executive
Board or to persons associated with them as at 31 December 2011. No
options were allocated in the year under review.
CHF 228. The market value calculated includes a 16%

discount in view of the shares restricted availability at the
time of their assignment. The share-based compensation
for 2010 will be awarded at the end of the three-year
reference period in spring 2013. No shares were awarded
in 2010. In accordance with the regulations valid at the
time, share-based compensation was awarded in the
following business year. The present compensation system was first adopted for the 2008 business year.
5 Six members. Peter Meier joined the Group Executive

Board on 1 November 2010, so the amounts shown include
the compensation paid to him for a two-month period.
8 Two members of the Group Executive Board are were
The compensation paid to Max E. Katz is included up until entitled to take early retirement in accordance with the
his retirement (on 31 December 2010).
regulations of the Patronale Frsorgestiftung. The noncontribution-based costs of the corresponding benefits
6 The members of the Group Executive Board were paid are included in the pension fund contributions shown.
STI variable compensation in cash form of CHF 1.2 million The corresponding regulations have not been extended to
in 2010 for the previous year. The cash-form variable
any new Group Executive Board member since 2005.
compensation paid to CEO Peter Rothwell amounted to
CHF 0.5 million.
assigned 8964 registered shares B in the 2010 business
year. These shares were valued at a market price of
02 Financial Report
248 | 249
02_05_03_
K u o n i t rav e l
holding ltd.
>>
Notes
>>
14. Share Ownership
Board of Directors and Group ExecUTIVe Board
Registered share B as at 31 December
2011
Board of Directors
Wolfgang Beeser
Heinz Karrer
John Lindquist
David Schnell
Annette Schmmel
Raymond D. Webster
Leif Vase Larsen
Stefan Leser
Rolf Schafroth
Peter Meier
Total
2010
Board of Directors
Wolfgang Beeser
Heinz Karrer
John Lindquist
David Schnell
Annette Schmmel
Raymond D. Webster
Max E. Katz1
Leif Vase Larsen
Stefan Leser
Rolf Schafroth
Peter Meier2
Total
1 Member of the Group Executive Board who left
the company during 2010.
Notes
Number of shares
Other equity instruments
Number of shares
Voting rights
Number of shares
4283
1052
1167
1146
2647
1326
1346
0.09%
0.02%
0.02%
0.02%
0.05%
0.03%
0.03%
0
0
0
0
0
0
0
808
3329
1768
1
0.02%
0.07%
0.04%
0.00%
0
0
0
0
18873
0.38%
Board of Directors (non-executive members only)
Voting rights
no blocking period
blocking period 2011
no blocking period
0%
31 Dec 2010
6279
0
2907
1906
1875
3727
1462
2907
1906
0
31 Dec 2011
31 Dec 2010
5757
0
149
0
0
4062
1148
149
0
0
Group Executive Board (current)
Number of shares
31 Dec 2011
15. Risk Management
The Board of Directors and the management use a risk management process under which a report is compiled every six months detailing
3190
838
930
698
2350
1148
848
0.08%
0.02%
0.02%
0.02%
0.06%
0.03%
0.02%
0
0
0
0
0
0
0
3243
505
1150
460
1
0.09%
0.01%
0.03%
0.01%
0.00%
0
0
0
0
0
15361
0.40%
Kuonis present risk exposure and the current status of defined riskreducing actions and activities. The probabilities of such risks occurring
and the anticipated impact of the risk scenarios analysed also form
part of this semi-annual risk management reporting. The Kuoni risk
management process further extends to quarterly reporting
on any newly identified risk scenario or changed risk assessment.
0%
2 Member of the Group Executive Board newly

appointed during 2010.
02 Financial Report
250 | 251
02_05_03_
>>
Notes
02_05_04_
Board of Directors proposal
for the appropriation of retained earnings
Risks are assessed by conducting interviews with management members
CHF
and further key personnel. The associated risk scenarios are then
Profit carried forward

Net result for the year
Retained earnings
developed on the basis of these and further considerations, including

corporate goals and strategies. Kuonis group-wide risk management
covers 17 top Group-level risks and three to five specific top risks for each
of the divisions and the most important business units.
Within the Internal Control System (ICS), the corresponding processes
had those specific risks systematically monitored which are relevant
to the annual accounting process in terms of their incorrect or fraudulent
reporting potential. The key controls derived from these were implemented where they were not already fully in place, and documented.
Procedures have also been defined to monitor and assess the existence
of internal controls.
K u o n i t rav e l
holding ltd.
2011
2010
1177433
11679501
12856934
1975049
21425261
23400310
0
0
0
0
0
0
Allocation to other reserves

Appropriation of profit
11000000
11000000
22222877
22222877
Profit carried forward to new account

Retained earnings
1856934
12856934
1177433
23400310
2011
2010
379855161
11995200
111792427
7235672
749700
476000
10654914
590586
11995200
6759672
0
7235672
Dividends:1
Total dividends
1 The dividends on treasury shares B which have

been set aside for the employee stock option plan
and are in our possession on the date of the dividend

payment will be added to retained earnings.
Instead of a dividend, the Board of Directors will propose to the Annual

General Meeting that shareholders receive a withholding tax-free
appropriation from the capital contribution reserve of CHF 0.60 per
registered share A and CHF 3.00 per registered share B.
CHF
Legal reserve from capital contribution
Distribution from legal reserve from capital contribution
Distribution1
Per registered share A CHF 0.60
Per registered share B CHF 3.00
on 3551638 shares entitled to dividend at 31 December 2011
on 196862 treasury shares set aside for the employee share plan at 31 December 2011
Total distribution
1 The company will waive its entitlement to such
payments from the capital contribution reserve for
02 Financial Report
252 | 253
the treasury shares held on the distribution date

which are reserved for use in its employee share
plan. The amount due on these shares will be taken

to the legal reserve from capital contributions.
02_05_05_
K u o n i t rav e l
holding ltd.
>>
Report of the Statutory Auditor on the Financial
An audit involves performing procedures to obtain
In accordance with article 728a paragraph 1 item 3 CO
Statements to the General Meeting of Shareholders of
audit evidence about the amounts and disclosures in
and Swiss Auditing Standard 890, we confirm that an
Kuoni Travel Holding Ltd., Zurich.
the financial statements. The procedures selected
internal control system exists, which has been designed
depend on the auditors judgment, including the assess-
for the preparation of financial statements according
As statutory auditor, we have audited the accompany-
ment of the risks of material misstatement of the
to the instructions of the board of directors.
ing financial statements of Kuoni Travel Holding Ltd.,
financial statements, whether due to fraud or error.
presented on pages 239 to 252, which comprise the
In making those risk assessments, the auditor consid-
We further confirm that the proposed appropriation of
statement of financial position, income statement and
ers the internal control system relevant to the entitys
available earnings complies with Swiss law and the
notes for the year ended 31 December 2011.
preparation of the financial statements in order to
companys articles of incorporation. We recommend
design audit procedures that are appropriate in the
that the financial statements submitted to you be
circumstances, but not for the purpose of expressing an
approved.
Board of Directors Responsibility
opinion on the effectiveness of the entitys internal

KPMG AG
The board of directors is responsible for the preparation
control system. An audit also includes evaluating the
of the financial statements in accordance with the
appropriateness of the accounting policies used
requirements of Swiss law and the companys articles
and the reasonableness of accounting estimates made,
of incorporation. This responsibility includes designing,
as well as evaluating the overall presentation
implementing and maintaining an internal control
of the financial statements. We believe that the audit
system relevant to the preparation of financial state-
evidence we have obtained is sufficient and
ments that are free from material misstatement,
appropriate to provide a basis for our audit opinion.
Auditor in Charge
Martin Schaad
whether due to fraud or error. The board of directors is

further responsible for selecting and applying appro-
Opinion
priate accounting policies and making accounting

estimates that are reasonable in the circumstances.
Auditors Responsibility
Our responsibility is to express an opinion on these
In our opinion, the financial statements for the year

ended 31 December 2011 comply with Swiss law and the
Ivano Castagna
companys articles of incorporation.
Report on Other Legal Requirements
Zurich, 15 March 2012
financial statements based on our audit. We conducted

our audit in accordance with Swiss law and Swiss
We confirm that we meet the legal requirements on
Auditing Standards. Those standards require that we
licensing according to the Auditor Oversight Act (AOA)
plan and perform the audit to obtain reasonable
and independence (article 728 CO and article 11 AOA)
assurance whether the financial statements are free
and that there are no circumstances incompatible with
from material misstatement.
our independence.
02 Financial Report
254 | 255
Travel is yearning
to see the other side.
fig. 8:
A terraced volcanic crater used as a Maori fortress when Europeans first landed in New Zealand.
256 | 257
02_06_
Corporate Governance
02_06_00_
Introduction
C o r p o ra t e
Gover na nce
This Corporate Governance Report describes the principles of management

and control as they apply to the top decision-making bodies of the
Kuoni Group. To enhance transparency and thus comparability with prior
years and other companies, it has been prepared in conformity with
the SIX Corporate Governance Directive of 29 October 2008. Unless otherwise specified, all the information contained in the report is based
on data as at 31 December 2011. The principles and rules of corporate
governance as practised by the Kuoni Group are set out in the companys Articles of Incorporation, its Organisational Regulations and the
regulations of the Board of Directors committees. The Chairman of
the Board of Directors reviews the content and current relevance
of the corporate governance provisions regularly, and proposes any
additions or amendments required to the Board of Directors.
The Kuoni Group meets all the relevant corporate governance provisions.
In particular, the Kuoni Group abides by all existing legislation, the
directives of the SIX Swiss Exchange (and the remarks thereto) and the
Swiss Code of Best Practice for Corporate Governance issued by
economiesuisse, Switzerlands umbrella business association (as updated
in 2007).
This document contains, under Point 02_06_10, the Compensation
Report of the Board of Directors, which also complies with the provisions
of Newsletter 2010/1 of FINMA, the Swiss Confederations financial
markets supervisory authority.
Trust, reliability and security are all

basic prerequisites for a healthy and
successful company. Maintaining
these essential parameters of business
management and control is the key
task of Corporate Governance. Professionally implemented Corporate Governance is essential for any successful
and responsible company that seeks to
serve its shareholders, employees and
external stakeholders.
02 Financial Report
258 | 259
02_06_01_
02_06_02_
Group Structure and Shareholders
02_06_01_01_
Group Structure
Capital Structure
C o r p o ra t e
Gover na nce
Kuoni Travel Holding Ltd. is not aware of any shareholders

agreements.
Kuoni Travel Holding Ltd. is a joint-stock holding company under Swiss

law which has direct or indirect shareholdings in all the companies
Cross-shareholdings
02_06_01_03_
worldwide which belong to the Kuoni Group. The Kuoni Group maintains
lean and efficient management structures at all levels. While the Board
Kuoni Travel Holding Ltd. has no cross-shareholdings, whether purely of a
of Directors devotes itself to overall management, strategic and super
capital nature or involving voting rights.
visory duties, the Group Executive Board is entrusted with operational

management tasks. For a diagram of the operational structure of the
Capital
02_06_02_01_
Kuoni Group, see page 46 of the Market Report.

The registered shares B of Kuoni Travel Holding Ltd., Zurich, which have
For further details and the composition of the amounts of ordinary, autho-
a nominal value of CHF 1., are traded on the Main Standard of the
rised and conditional capital of Kuoni Travel Holding Ltd. at year-
SIX Swiss Exchange (securities number 350 485, ISIN CH 0003504856).
end, please see note 21 on page 207 of the Financial Report. Further infor-
The registered shares A of Kuoni Travel Ltd., Zurich, which have a
mation on the capital structure is available on the company website.
www.kuoni.com/
share-capital-structure
nominal value of CHF 0.20, are not listed. The companys legal domicile is
www.kuoni.com/group
at Neue Hard 7, Zurich. Kuoni Travel Holding Ltd. does not hold any
Kuoni Travel Holding Ltd. conducted a capital increase in 2011. The new
equity interests in any stock-exchange-listed companies.
registered shares were used to finance or refinance the acquisition of
For details of the unlisted companies that belong to the Kuoni Group of
shares in GTA Holdco Limited, GTA Americas LLC, Octopus Travel.com
consolidated companies, see pages 230 to 233 of the Financial Report.
(USA) Limited and Columbus Technology Developments Limited
A detailed description of the global activities of the Kuoni Group is
(collectively known as Gullivers Travel Associates [GTA]). The subscription
available in the Market Report or on the company website.
rights of existing shareholders were granted in full for the new share
issue.
02_06_01_02_
Principal Shareholders
Authorised and Conditional Capital in Particular
02_06_02_02_
The information on principal shareholders of Kuoni Travel Holding Ltd.
www.six-swiss-exchange.com/
shares/companies/
major_shareholders_de.html
www.kuoni.com/major-shareholders
is provided in the table on page 208 of the Financial Report. This shows
The authorised capital of Kuoni Travel Holding Ltd. amounts to
those shareholders holding over 3% of the companys shares, together
CHF 571200 and is valid until 20 April 2013. The use of the authorised
with their current holdings (based on information provided by the same).
capital is limited to the financing or refinancing of GTA Holdco Limited,
The company received one notification of significant shareholders as
GTA Americas LLC, Octopus Travel.com (USA) Limited and Columbus
required under Article 20 of the Swiss Federal Act on Stock Exchanges
Technology Developments Limited which was effected in 2011. The Board
and Securities Trading in the course of 2011. This notification was
of Directors may not issue any new shares for any other purpose on the
published on the SIX Swiss Exchanges notifications platform and on the
basis of the authorised capital. The Board of Directors will delete Article
company website. Kuoni Travel Holding Ltd. is not aware of any
3ter of the Articles of Incorporation of Kuoni Travel Holding Ltd. relating
other shareholders holding more than 3% of the companys shares as of
to authorised capital upon the expiration of its validity on 20 April 2013.
31 December 2011.
02 Financial Report
260 | 261
02_06_02_
C o r p o ra t e
Gover na nce
>>
Capital Structure
>>
Capital Structure
Although the authorised capital of Kuoni Travel Holding Ltd. can vir-
In the case of issues of bonds or similar debt instruments to which con-
tually no longer be used as a result of the above restriction, the following
version and/or warrant rights are attached, the pre-emptive rights of the
information is still provided because it is required to be included in
existing shareholders are excluded. The holders of the said conversion
a companys Annual Report by the corresponding corporate governance
and/or warrant rights are entitled to subscribe for new registered shares
information directive of the SIX Swiss Exchange:
B. The acquisition of registered shares through the exercise of conversion

and/or warrant rights and any subsequent transfer thereof are subject to
In accordance with Article 3ter of the Articles of Incorporation of Kuoni
the transfer and voting restrictions contained in the Articles of Incor
Travel Holding Ltd., the Board of Directors is authorised to increase
poration. The Board of Directors is authorised to restrict or revoke the
share capital by up to CHF 571 200 through the issue of a maximum of
pre-emptive rights of shareholders when such bonds or similar debt
178500 fully-paid-up registered shares A with a nominal value of CHF 0.20
instruments to which conversion and/or warrant rights are attached are
per share and a maximum of 535500 fullly-paid-up registered shares B
issued to finance the acquisition of other companies or parts of compa-
with a nominal value of CHF 1.00 per share at any time until 20 April
nies. If shareholders pre-emptive rights are revoked by a decision of the
2013. Should it do so, the Board of Directors shall specify the issue amount,
Board of Directors, the conversion and/or warrant rights concerned will
the type of contribution, the date of such issue and the commencement
be issued at the prevailing market price, and the new registered shares
of dividend entitlement. In the issue of any such shares, the subscription
will be issued at market rates, with due regard to the current market
rights of existing shareholders shall be granted in full. The Board of
price of the registered shares concerned and/or of comparable financial
Directors may also issue such new registered shares through their firm
instruments with a market price. The exercise period is limited to ten
acquisition by a bank or a third party and subsequent offering to existing
years for conversion rights and to seven years from the date of the bond
shareholders. The Board of Directors is empowered to determine the
issue for warrant rights.
subscription price and the further subscription-right provisions. Should

subscription rights not be exercised, the Board of Directors may permit
Conditional capital of a maximum of CHF 96000 also exists for use in
these to lapse, place them (and the corresponding shares) on the market
exercising subscription or option rights granted to employees of Kuoni
at market rates or use them in any other way in the interests of the
Travel Holding Ltd. or its subsidiaries under one or more employee stock
company. The exercising of contractually-acquired subscription rights
option plans. In such cases, new registered shares B may also be issued
and the subscription to and acquisition of the new registered shares, and
to employees at rates below the current stock market price, and existing
any subsequent trannsfer thereof, are subject to Article 5 of the Articles
shareholders shall have no subscription rights. The terms and conditions
of Incorporation of Kuoni Travel Holding Ltd. Every new share entitles its
for the issue of such shares shall be determined by the Board of Directors.
holder to one vote.
The acquisition of registered shares under such employee stock option

plans and any subsequent transfer thereof are subject to all the relevant
Conditional capital issuable via the exercising of conversion rights
statutory transfer and voting right restrictions.
and/or warrants linked to bonds or similar debt issued by Kuoni Travel

Holding Ltd. or any of its subsidiaries in the domestic or international
capital markets amounts to a maximum of CHF 384000.
02 Financial Report
262 | 263
02_06_02_
C o r p o ra t e
Gover na nce
>>
02_06_02_03_
Capital Structure
Changes in Capital and Share Buyback Programme
>>
Capital Structure
Securities held with an intermediary may only be disposed of or used as

collateral in compliance with the terms of the Swiss Intermediary-Held
For 2009, 2010 and 2011 please refer to note 7 on page 242 of the
Securities Act (Bucheffektengesetz). Uncertificated securities which do
Financial Report.
not qualify as securities held with an intermediary may only be transferred by assignment. Such assignment shall only be valid if Kuoni Travel
02_06_02_04_
Shares and Participation Certificates
Holding Ltd. is notified thereof.
The composition of the share capital of Kuoni Travel Holding Ltd. is
All registered shares are entitled to a dividend. Kuoni Travel Holding Ltd.
shown on page 207 of the Financial Report. At the General Meeting of
waives its entitlement to a dividend on any shares held by the company
Shareholders of Kuoni Travel Holding Ltd. each registered share carries
as treasury shares at the time of the dividend payment. The voting rights
one vote. These voting rights can only be exercised if the shareholder
attached to such shares are suspended by law.
is registered as a shareholder with voting rights in the Kuoni Travel

Holding Ltd. share register. Under the Articles of Incorporation, such
Kuoni Travel Holding Ltd. has not issued any participation certificates.
registration also requires a declaration from the shareholder that they

have acquired the shares concerned in their own name and for their
Dividend-right Certificates
02_06_02_05_
own account.
Kuoni Travel Holding Ltd. has not issued any dividend-right certificates.
The unlisted registered shares A (nominal value CHF 0.20) have a five
times lower nominal value than the listed registered shares B (nominal
Restrictions on Transferability and Nominee Registrations
02_06_02_06_
value CHF 1.00), and thus have five times greater voting rights in terms
of the capital invested.
The following provisions apply to the registered shares A and B of

The registered shares of Kuoni Travel Holding Ltd. are uncertificated.

The shareholder may demand at any time that Kuoni Travel Holding Ltd.
The Board of Directors of Kuoni Travel Holding Ltd. will deny the regi-
issue a confirmation in respect of the registered shares which the
stration of an acquirer of registered shares subject to the provisions
shareholder currently owns. The shareholder is not entitled to the prin-
of the last paragraph in this chapter 02.06 as the holder or usufructuary
ting and delivery of certificates for registered shares. Kuoni Travel
of the registered shares with voting rights concerned if, as a result of
Holding Ltd., by contrast, may print and deliver certificates representing
such registration, the acquirer were to acquire or collectively hold,
shares (single or global share certificates or certificates comprising
directly or indirectly, more than 3% of the registered share capital entered
multiple shares) at any time instead of uncertificated securities. Kuoni
in the Commercial Register. For the registered shares exceeding this 3%
Travel Holding Ltd. may also cancel without replacement any
ceiling, the acquirer shall be registered in the share register as the holder
such prev iously issued share certificate or uncertificated security.
or usufructuary of these registered shares without voting rights.
02 Financial Report
264 | 265
02_06_02_
C o r p o ra t e
Gover na nce
>>
Capital Structure
>>
Capital Structure
Legal entities or partnerships that are interrelated through capital
of any such action, the shareholder concerned must be immediately
ownership, voting rights or uniform management or are otherwise
informed.
linked with one another, as well as individual persons or legal entities or

partnerships who act in concern for the purpose of circumventing the
The Board of Directors of Kuoni Travel Holding Ltd. shall specify the
limitation for registration in the share register shall, for the purposes of
particulars and give the necessary directions to ensure compliance
the preceding paragraph, be treated as one single acquirer.
with the preceding provisions. It may also allow exemptions in particular
The limitation for registration in the share register set forth in para-
limitation specified in paragraph 1. The Board of Directors issues regu-
graph 1 of this chapter 02.06 subject to Article 652b, paragraph 3 of the
lations on this. The Board may also delegate its duties.
cases from the regulation regarding nominees and the percentage
Swiss Code of Obligations, also applies to registered shares which

are acquired through the exercising of pre-emptive rights, warrants and
No exemptions from the transferability and nominee registration
conversion rights. The limitation for registration in the share register
restrictions were granted in 2011.
shall not apply to an acquisition of registered shares by succession or

division of estate or under marital property law.
The vested rights of the shareholders entered in the share register on

25 February 1995 (including those of their legal successors by virtue of
Other than set forth above, acquirers of registered shares shall be
the devolution or partition of an estate, a matrimonial property regime
registered in the share register as shareholders with voting rights upon
or a merger with or incorporation into a directly-controlled, wholly-
their application, provided they expressly declare that they have
owned holding company) remain intact. The limitations outlined above
acquired the registered shares in their own name and for their own
shall also not apply to shares which have been or will be acquired by
account.
the shareholders entered in the share register on 25 February 1995 or their

legal successors as defined above through the exercising of subscription,
The Board of Directors of Kuoni Travel Holding Ltd. may register indi-
warrant, option or conversion rights arising from the shares entered in
vidual persons who do not expressly declare that they hold the regis-
the share register on 25 February 1995 and any shares derived therefrom.
tered shares for their own account (nominees) in the share register with
voting rights if the nominee has entered into an agreement with the
Convertible Bonds and Options
02_06_02_07_
Board of Directors with respect to such status and if the nominee is subject to the supervision of a recognised bank or financial market.
Kuoni Travel Holding Ltd. had no convertible bonds or options outstanding at the end of 2011.
The Board of Directors of Kuoni Travel Holding Ltd. may also, after
having heard the person concerned, cancel a persons registration in the
share register as a shareholder or nominee with voting rights with
retroactive effect to the date of registration if such registration was
based on incorrect information from the acquirer, and shall then in such
cases register the shareholder or nominee concerned in the share
register as a shareholder or nominee without voting rights. In the event
02 Financial Report
266 | 267
02_06_03_
C o r p o ra t e
Gover na nce
Board of Directors
02_06_03_01_
>>
Board of Directors
specified in the Articles of Incorporation, the Board of Directors consists
Members of the Board of Directors
of a minimum of five and a maximum of nine members. These members

a) The Board of Directors of Kuoni Travel Holding Ltd. consists of the
following seven members:
Name
Henning Boysen
Wolfgang Beeser
Annette Schmmel
Raymond D. Webster
David Schnell
Heinz Karrer
John Lindquist
each year extending from one Ordinary General Meeting of Shareholders
Born
Nationality
Function
Joined
Current term expires
1946
1942
1965
1946
1947
1959
1950
Danish
German
Swiss/German
British/New Zealander
Swiss
Swiss
British/US-American
Chairman
Deputy Chairman
Member
Member
Member
Member
Member
2003
2007
2004
2006
2002
2007
2007
2012
2013
2013
2013
2012
2014
2014
www.kuoni.com/board-of-directors
are each elected for a term of office that shall not exceed three years, with
The curricula vitae of the individual Board members can be viewed on

page 47 of the Market Report and on the company website.
to the next. The Board of Directors is self-constituting. The Board

appoints its Chairman, one or more Deputy Chairmen (as required) and
a Secretary, the last of whom need not be a Board member.
The organisational regulations and company bylaws also stipulate that
members of the Board of Directors will automatically retire from the
Board on the date of the General Meeting of Shareholders following their
70th birthday.
For information on the initial election and remaining period of office of
each member of the present Board of Directors, please see the table under
02_06_03_01_ above.
b) All the members of the Board of Directors are non-executive independent directors.
c) None of the present Board members sat on the Group Executive
The internal organisation of the Board of Directors is based on the com-
Board of Kuoni Travel Holding Ltd. or on the executive board of any
panys Organisational Regulations, which are issued by the Board
Internal Organisation
group subsidiary of Kuoni Travel Holding Ltd. within the last three years.
of Directors and were last revised in December 2011. The Organisational
Similarly, none of the present Board members maintains material
Regulations may be viewed on the company website.
02_06_03_04_
www.kuoni.com/
corporate-governance
business relationships with Kuoni Travel Holding Ltd. or with any group
subsidiary of Kuoni Travel Holding Ltd.
02_06_03_02_
Other Activities and Functions
Division of Duties within the Board of Directors
Within the Board of Directors, the Chairman has the following duties and
authorities. The Deputy Chairman deputises for the Chairman in his
Details of other activities and functions of the members of the Board of
absence, and bears the same duties and authorities when doing so. Apart
Directors are available on the company website.
from these duties and authorities, the Chairman and Deputy Chairman
have no particular function within the Board of Directors.
02_06_03_03_
Election and Term of Office
The Chairman is responsible for the formal and organisational leaderEach individual member of the Kuoni Travel Holding Ltd. Board of
ship and management of the Board of Directors. In urgent cases, he
Directors is elected separately by the General Meeting of Shareholders. As
shall also take the necessary decisions and precautions until the matter
02 Financial Report
268 | 269
02_06_03_
C o r p o ra t e
Gover na nce
>>
Board of Directors
>>
Board of Directors
can be decided upon by the Board of Directors. The Chairman further
The prime duty of the Audit Committee is to support the Board of
monitors the observance of legal requirements, the Articles of Incorporation,
Directors in its monitoring and superv ision of the companys accounting
regulations and directives by the companys management bodies,
and financial management. Its main tasks therein comprise:
and submits the requisite motions, requests and proposals to the Board of
providing independent and objective monitoring of the integrity
Directors. The Chairman also ensures, in collaboration with the Group
of the companys consolidated reporting process, internal financial
Executive Board, that information is provided in good time on all major
control systems and accounting and their compliance with the
aspects of the company which are of relevance to the monitoring of its
relevant legal provisions;
activities and to the corporate decision-making process. Further details
assessing the independence and performance of both the external
of the duties and authorities of the Chairman of the Board are provided
and the internal auditors;
in Section 2.5 of the Organisational Regulations.
ensuring open communications between the Group Executive Board,
the Board of Directors and the internal and external auditors.
Board Committees
The Audit Committee further reviews:

The Board of Directors has formed the following two committees to assist
the guidelines imposed by the Group Executive Board to ensure
it in its work: the Audit Committee and the Nomination and Compensa-
efficient financial reporting processes and controls;
tion Committee.
periodic discussions of the current state of affairs with the Group
Executive Board and the internal auditors and separately
with the external auditors.
Each of these committees has written regulations specifying its tasks and
responsibilities.
The Audit Committee also performs the following main tasks which have
The Audit Committee currently consists of David Schnell (chairman),
been assigned to it by the Board of Directors:
Wolfgang Beeser and John Lindquist . The Audit Committee has assured
reviewing the Annual Report, the annual and interim financial
itself that the majority of its members have the requisite expertise in
statements, the nine-month Business Update and the auditing
accounting and financial management. The Audit Committee reports to
reports and management letters of the Kuoni Group and
the Board of Directors on its conclusions, and the Board of Directors
Kuoni Travel Holding Ltd. and submitting proposals to the Board
decides upon appropriate action.
of Directors;
ensuring compliance with set accounting standards within
the Group;
approving the integrated audit plans of the external auditors
as well as the internal auditors;
assessing and discussing the external auditors audit reports;
assessing the performance, independence and compensation
02 Financial Report
of the external auditors;
selecting the auditing company to be proposed to the General
Meeting of Shareholders for election as the companys statutory
270 | 271
02_06_03_
C o r p o ra t e
Gover na nce
>>
Board of Directors
>>
Board of Directors
auditor and submitting the corresponding proposal to
furthering the development of management as a whole. The Nomination
the Board of Directors;
and Compensation Committee enlisted the services of an external
periodically reviewing internal processes and procedures;
specialist, Hostettler Kramarsch & Partner, Zurich, in 2011 to assist it in
periodically reviewing the suitability and effectiveness
its decisions and recommendations. The Nomination and Compensation
of the internal auditors;
Committee reports to the Board of Directors on its conclusions, and the
submitting proposals to the Board of Directors on entries into
Board of Directors decides upon appropriate action on the basis thereof.
the share register for shareholders with voting rights
In this connection, please also see the Compensation Report (note
in connection with Article 5 of the Articles of Incorporation;
02_06_10 below).
periodically reviewing the guidelines issued on ad-hoc
publicity and the prevention of insider dealing;
submitting proposals to the Board of Directors on notifying
Committees
the courts in the event of overindebtedness;
periodically reviewing all internal guidelines and directives
The Board of Directors and its committees meet as often as business
that are not reviewed by any other committee.
requires, but a minimum of six times a year for the Board of Directors,
Working Methods of the Board of Directors and its
four times a year for the Audit Committee and three times a year for
The Audit Committee has its own authority on the following matters:
the Nomination and Compensation Committee. The Board of Directors
ensuring the auditors fulfilment of the legal requirements
met nine times for regular meetings in 2011 (average length: 8 hours)
on licensing as stipulated in the Auditor Oversight Act (AOA)
and also held one extraordinary meeting of 2.5 hours duration. The Audit
and independence (Swiss Code of Obligations, Article 728);
Committee held four regular meetings (average length: 6.5 hours);
maintaining the share register;
and the Nomination and Compensation Committee held three regular
periodically reviewing the organisation of the internal auditor;
meetings (average length: 3.5 hours) and three telephone conferences

(average length: 45 minutes).
reviewing strategic tax planning issues;
Remunerating external auditors for subsidiaries;
appointing and dismissing the Head of Internal Audit.
The Board of Directors meets at the invitation of its Chairman. A Board

meeting may also be demanded by any of its members or by the CEO.
The Nomination and Compensation Committee is composed of Heinz

Karrer (chairman), Annette Schmmel and Raymond D. Webster.
The agenda of the Board of Directors meetings is set by the Chairman.
The main tasks of the Nomination and Compensation Committee are to
Any member of the Board of Directors may table an agenda item.
monitor the organisation, qualification, performance and remuneration
The members of the Board of Directors each receive documentation prior
of management and the Board of Directors and to review the terms and
to the meetings which enables them to prepare for discussion of the
conditions of any employee share purchase plan. Other tasks performed
agenda items concerned.
by the committee are assessing the performance of the CEO and the
Group Executive Board as a team, arranging succession plans for the
Board meetings are chaired by the Chairman. A Board meeting shall be
members of the Board of Directors and the Group Executive Board,
quorate provided the majority of Board members are present. The Board
seeking and proposing new members for the Board of Directors and
votes and passes resolutions by a simple majority. In the event of a tie, the
02 Financial Report
272 | 273
02_06_03_
C o r p o ra t e
Gover na nce
>>
Board of Directors
>>
Board of Directors
meeting chair has the casting vote. In addition to its members, meetings
Minutes are kept of all Board committee meetings. Committee resolutions
of the Board of Directors are generally attended by the CEO and the Chief
may also be passed by circular written communication, provided no
Financial Officer (CFO), and by further members of the Group Executive
member demands that a meeting be convened.
Board as and when required. These attendees have only an advisory

function, along with the right to table motions or agenda items. Persons
An annual self-assessment procedure has been established to permanent-
who are not members of the Group Executive Board may also attend as
ly monitor and if possible enhance the performance of the Board of
specialists at the chairs invitation.
Directors. This evaluates how efficiently the Board and its committees are
performing their functions and meeting their responsibilities, whether
Minutes are kept of all meeting deliberations. Board resolutions may
each Board member participates actively in Board discussions and
also be passed by written approval (letter, fax, email or other written
makes contributions based on independent judgement, and whether an
form), again by a simple majority, provided all Board members have had
environment of open discussions is maintained at Board meetings.
the opportunity to cast their vote and provided no member demands

oral discussion of the matter concerned.
Board committee meetings are held at the invitation of the chair. A Board
The Board of Directors is the companys supreme managing body and is
committee meeting may also be demanded by any committee member
responsible for supervising the management of the company and its
or the CEO (and an Audit Committee meeting may additionally be de-
business. It deals with all matters that are not entrusted to another body
manded by the Chairman of the Board, the CFO or the internal or
of the company under the law, the companys Articles of Incorporation
external auditors). The agenda of Board committee meetings is compiled
or its Organisational and Business Regulations.
Areas of Responsibility
02_06_03_05_
by the chair. Any committee member may table an agenda item.

With regard to the non-transferability and inalienability of duties of
The committee members each receive documentation prior to the meet-
the Board of Directors, reference is made to Article 716a of the Swiss Code
ings which enables them to prepare for discussion of the agenda items
of Obligations and Article 20 of the Articles of Incorporation.
concerned.
The Board of Directors may also, subject to the relevant legal provisions,
Board committee meetings are chaired by the committee chair. A committee
delegate all or part of its duties to manage and represent the company to
meeting shall be quorate (and empowered to submit proposals to the Board
one or more of its members (as managing directors) or to third parties
of Directors) provided the majority of committee members are present.
by issuing the appropriate organisational regulations. In this connection,
The meeting votes and passes resolutions by a simple majority. In the event
the Board of Directors has issued a set of Organisational Regulations
of a tie, the meeting chair has the casting vote. In addition to its members,
which specify (under Section 2.3) its further duties and authorities and
meetings of the Audit Committee are generally attended by the Chairman of
list (under Section 4.3) those business items which require its approval.
the Board, the CEO, the CFO, the Head of Internal Audit and a representative of the external auditors. In addition to its members, meetings of the
Nomination and Compensation Committee are generally attended by the
Chairman of the Board, the CEO and the Chief Human Resources Officer.
02 Financial Report
274 | 275
02_06_03_
C o r p o ra t e
Gover na nce
>>
www.kuoni.com/
corporate-governance
Board of Directors
>>
Board of Directors
The Board of Directors of Kuoni Travel Holding Ltd. manages the
ensuring that all legal requirements are observed and that
subsidiaries under its legal and/or economic control as a corporate group.
all applicable legal provisions are familiar to and observed by
The responsibility for the resolutions taken by the Board of Directors
the companys employees (Corporate Compliance; the basic
therefore extends not only to the company in the legal sense but also to all
parameters here are laid down in the companys Code of Conduct);
the subsidiaries described above by virtue of the Boards authority to
the internal organisation and the internal control system;
issue instructions to the representatives of the company in their respective
hiring and dismissing employees;
governing bodies. Within the overall parameters imposed by the
monitoring the performance of external service providers;
law and the Articles of Incorporation, the Board of Directors delegates
preparing meetings of the Board of Directors together
the management of the company to the Group Executive Board by
with its Chairman and presenting the necessary documents;
means of the relevant Organisational Regulations, which can be viewed
reporting to the Board of Directors.
on the company website.

The Group Executive Board is empowered to pass resolutions on all
The Group Executive Board has the duty and the authority to manage
business assigned to it. The Group Executive Board may submit
the Kuoni Groups business operations. It is responsible in particular for:
such business to the Board of Directors for approval. The provisions on
planning, managing and monitoring the companys profitability,
which items of business must be submitted to the Board of Directors
risk positions, balance sheet structure and liquidity within
for approval are laid down in the Organisational Regulations (Article
the guideline parameters laid down by the Board of Directors;
4.3 thereof).
devising the business strategy, multi-year business plan and budget
for the following business year, and submitting these to the
Board of Directors;
the Group Executive Board
preparing and submitting proposals to the Board of Directors,
particularly in relation to financing policy, investment policy, asset
The Management Information System (MIS) of the Kuoni Group is
management policy, risk management and sourcing and trading
structured as follows. The financial statements of the individual subsidi-
policy, and in other areas as and where required (the Group
aries are prepared on a monthly, quarterly, semi-annual and annual
Executive Board shall also ensure the subsequent detailed adoption
basis. These figures are aggregated per division and consolidated for the
of such policies and the observance of the principles laid down in
Group. The figures are compared with the previous year and the budget.
connection therewith, and shall report regularly to the Board
The attainability of the budget, which is based on the first year of a
of Directors thereon);
three-year mid-term plan for each subsidiary, is assessed on the basis of
Information and Controlling Instruments for Supervising
compiling the annual and half-year accounts and the Nine-Month
quarterly reporting and forecasts. The heads of the divisions submit
Business Update and providing the additional information
monthly written reports on the progress of business to the Group
required in connection therewith, and submitting these to the
Executive Board and the Board of Directors. These reports are discussed
Board of Directors.
with the Group Executive Board at the Board of Directors meetings,
02_06_03_06_
as are the implementation and observance of Board resolutions and the

companys liquidity levels.
02 Financial Report
276 | 277
02_06_03_
C o r p o ra t e
Gover na nce
>>
Board of Directors
>>
Board of Directors
Any member of the Board of Directors may demand to be informed about
Internal Audit complements the controlling mechanisms available to the
the companys affairs. The CEO is responsible for informing the Board
Board of Directors and reports directly to the Boards Audit Committee.
of Directors about the current course of business and important business
Internal Audit supports the Group Executive Board in special projects as
transactions occurring in the company and in its subsidiaries. The
requested by the CEO or other members of the Group Executive Board,
CEO reports to the Chairman of the Board at regular intervals. The CEO
and in other matters. Internal Audits main task is to conduct an
must also inform the Chairman immediately of any unusual events,
independent assessment of internal control systems and their effectiveness
and the Chairman will in turn pass such information on to the members
with regard to potential risks. The reports prepared by Internal Audit
of the Board.
regarding the audits carried out are submitted to the members of the
Audit Committee, the Chairman of the Board, the CEO, the CFO, the Head
To ensure the direct information of the full Board of Directors, the CEO
of IT, the Head of Corporate Controlling, the Group General Counsel
regularly attends meetings of the Board of Directors and its committees
and the external auditor. Each report also contains comments by the Group
unless the Board or its committees need to conduct a closed meeting
Executive Board regarding the key findings of the audits conducted in
session. The CFO also attends all meetings of the Audit Committee and is
addition to suggested improvements.
further present for most agenda items at full Board meetings. The
further members of the Group Executive Board attend Board meetings for
particular agenda items as and when required. The Chairman of
the Board also receives copies of the minutes of all meetings of the Group
Executive Board.
The companys risk management function provides an established risk
model for identifying, managing and monitoring strategic and operational risks throughout the Kuoni Group. The groupwide risk profile
consists of the risks identified in the Groups main country organisations
(adopting the bottom-up approach) and groupwide strategic risks
(adopting the top-down approach). The present risk profile and the
current status of risk-reducing measures resolved are regularly monitored
and are reported twice-yearly to the Board of Directors.
02 Financial Report
278 | 279
02_06_04_
02_06_05_
the grouP executive Board
02_06_04_01_
membeRs oF the gRoup executive boARd
Compensation, shares and Loans
CoRpoRAte
GoveR nA nCe
Details of the compensation, shares and loans of members of the Board

of Directors and the Group Executive Board are provided in the Compen-
For details of the members of the Group Executive Board, please see
sation Report (note 02_06_10).
page 51 of the Market Report.
02_06_04_02_
www.kuoni.com/executive-board
otheR Activities And Functions
Details of other activities and any further functions of Group Executive

Board members are provided on the company website.
No member of the Group Executive Board holds any official function or
political office.
02_06_04_03_
mAnAgement contRActs
Kuoni Travel Holding Ltd. and its Group subsidiaries have not concluded
any management contracts with any third parties.
02 FinAnciAl RepoRt
280 | 281
02_06_06_
02_06_06_01_
Restriction and Representation of Voting Rights
C o r p o ra t e
Gover na nce
>>
the devolution or partition of an estate, a matrimonial property regime

or merger with or incorporation into a directly-controlled, wholly-owned
Each share entitles its holder to one vote at the Annual General Meeting.
holding company) remain intact. Neither do the limitations outlined
When exercising the right to vote, no shareholder shall be able to vote,
above apply to shares which have been or will be acquired by the share-
directly or indirectly, with more than 3% of the registered share capital
holders entered in the share register on 25 February 1995 or their legal
entered in the Commercial Register; this 3% includes their own shares
successors as defined above through the exercise of subscription, warrant,
and shares represented by proxy. This limitation on voting rights does not
option or conversion rights arising from the shares entered in the share
apply to corporate proxies (Article 689c of the Swiss Code of Obligations),
register on 25 February 1995 and any shares derived therefrom.
independent proxies (Article 689c of the Swiss Code of Obligations),

depositaries (Article 689d of the Swiss Code of Obligations) or sharehold-
Statutory Quorums
02_06_06_02_
ers registered in the share register as shareholders with voting rights

for more than 3% of the registered share capital entered in the Commer-
As a general principle, the General Meeting of Shareholders votes and
cial Register.
passes resolutions by an absolute majority of the votes in favour and votes

against cast (excluding abstentions). The following resolutions of the
Legal entities or partnerships that are interrelated through capital
General Meeting of Shareholders require at least two-thirds of the votes
ownership, voting rights or uniform management or that are otherwise
represented and an absolute majority of the nominal value of the shares
linked with one another, as well as individual persons or legal entities
represented to be passed:
or partnerships acting in concert for the purpose of circumventing the
amendments to the Articles of Incorporation, including any changes
limitation on registration in the share register are regarded as one single
to the companys purpose;
shareholder for the purposes of the preceding paragraph.
the creation of shares with privileged voting rights;
limiting or relaxing the transferability of registered shares;
The Board of Directors of Kuoni Travel Holding Ltd. issues procedural
an authorised or conditional capital increase;
rules regarding participation in and representation at the General
a capital increase through the conversion of capital surplus,
Meeting of Shareholders. A shareholder may only be represented at the
in return for a non-cash contribution or for the purposes
General Meeting of Shareholders by their legal representative, another
of acquiring property and granting special rights;
shareholder with the right to vote, the corporate proxy, the indepen-
limiting or revoking pre-emptive rights;
dent proxy or a depositary. All the shares held by a shareholder may be
changes to the location of the companys registered office;
represented by one person only.
the dissolution of the company through liquidation or by merger.
The members of the Board of Directors of Kuoni Travel Holding Ltd.
Convening the General Meeting of Shareholders
02_06_06_03_
who are present at the Annual General Meeting of Shareholders decide

whether powers of attorney are to be recognised.
The Ordinary General Meeting of Shareholders is convened in accordance

with the relevant legal requirements. It is generally convened in April,
The vested rights of the shareholders entered in the share register on
and must be held within six months of the end of the financial year to
25 February 1995 (including those of their legal successors by virtue of
which it relates. An Extraordinary General Meeting of Shareholders
02 Financial Report
282 | 283
02_06_06_
02_06_07_
>>
Changes of Control and Defence Measures
can be convened if the Board of Directors or the external auditors deem
Duty to Make an Offer
C o r p o ra t e
Gover na nce
02_06_07_01_
this appropriate. The convention of an Extraordinary General Meeting of

Shareholders may also be demanded by shareholders representing at
There are no opting-up or opting-out clauses in the Articles of Incor
least 10% of share capital, provided this is done jointly and in writing
poration of Kuoni Travel Holding Ltd. In view of this, any person owning
stating the items to be discussed and the corresponding proposals or,
more than one-third of the voting rights of Kuoni Travel Holding Ltd.
in the event of elections, the names of the candidates proposed.
must make an offer for all the companys listed shares.
Every registered shareholder receives a personal invitation to attend,
Change-of-Control Clauses
02_06_07_02_
a detailed meeting agenda and notes on the various agenda items at least
www.kuoni.com/
annual-general-meeting
20 days in advance of the meeting concerned. The agenda will also be
The following change-of-control clauses apply:
published in various Swiss newspapers and on the website.
02_06_06_04_
Board of Directors
Agenda
There are no change-of-control clauses in any agreements or plans to the

Shareholders representing shares with a nominal value of CHF 20 000 or
benefit of members of the Board of Directors.
more can demand that an item be included on the agenda of a General
www.kuoni.com/
annual-general-meeting
Meeting of Shareholders up to 45 days before the meeting concerned. This
request must be submitted in writing, and must also specify the motions
Senior Management
Members of the Group Executive Board and groupwide
to be put to the meeting. The submission deadline is published on the

website.
In the event of a change of control, the current three-year vesting period

under the Long-Term Incentive shall end immediately and the corre-
02_06_06_05_
Entry in the Share Register
sponding shares shall be assigned. Apart from this, there are no changeof-control clauses in any agreements or plans to the benefit of members
All shareholders entered in the share register as shareholders with voting
of the Group Executive Board or groupwide Senior Management.
rights up to three working days before a General Meeting of Shareholders

may vote at the meeting concerned. Shareholders who sell their shares
Bondholders
before the General Meeting of Shareholders takes place are no longer

entitled to vote. Shareholders who buy additional shares or sell part of
In the event of a change of control, bondholders are entitled to demand
their shareholding after their meeting admission card has been issued
the premature repayment of their bond amount.
must exchange the card sent to them at the information desk on arriving
at the meeting concerned.
Syndicated credit facility lenders
In the event of a change of control, the banks participating in the syndicated credit facility are entitled to demand the premature repayment
of any current loan amounts thereunder and/or to terminate the facility.
02 Financial Report
284 | 285
02_06_08_
02_06_09_
Auditors
02_06_08_01_
Duration of Mandate and Term of Office of the
Auditor-in-Charge
Information Policy
C o r p o ra t e
Gover na nce
Kuoni Travel Holding Ltd. maintains an open and transparent communication policy towards its shareholders, current and potential investors,
financial analysts, customers, business partners and other stakeholder
The auditing mandates issued to KPMG Ltd., Zurich have a duration of
groups. Kuoni Travel Holding Ltd. provides prompt and comprehensive
one year each. KPMG Ltd., Zurich, has been the auditor of Kuoni Travel
information on the Groups business activities, while paying due and
Holding Ltd. since 1970. The auditor-in-charge, Martin Schaad, has
full regard to all the applicable provisions and directives of the SIX Swiss
been in office since April 2009. The auditor-in-charge is changed at least
Exchange. In its endeavours to present details of its business development
every seven years.
to its stakeholders, Kuoni Travel Holding Ltd. also makes forward-looking statements. These statements are assessments by the management
02_06_08_02_
Audit Fee
about the present and future situation and performance of the company
as they appear at the time the statement is made.
KPMG charged the Kuoni Group fees amounting to CHF 2.7 million during
the 2011 financial year for services in connection with the auditing of the
annual accounts of Kuoni Travel Holding Ltd. and its Group subsidiaries,
as well as the consolidated financial statements of the Kuoni Group. An
additional CHF 0.8 million was charged by other audit companies.
02_06_08_03_
Additional Fees
KPMG also charged the Kuoni Group fees totalling CHF 0.7 million for
Key Dates for 2012

Financial year close:
2011 annual results published:
Annual Report published:
General Meeting of Shareholders:
Dividend paid to banks:
Analysts' Day
First half-year close:
Half-year results announced:
Nine-month business update announced:
31 December 2011
20 March
20 March
17 April
24 April (ex-day: 19 April)
30 May
30 June
23 August
08 November
additional services, i.e. tax consulting and accountancy compliance.

No fees were charged by other audit companies for any 0ther services.
02_06_08_04_
Supervisory and Controlling Instruments with Regard to
the External Auditors
www.kuoni.com/financial-calendar
The latest key dates are always available on the website.

Kuoni Travel Holding Ltd. publishes a comprehensive Annual Report
each year informing its shareholders about business developments and
the companys annual results. The Annual Report can be ordered by
Each year, the Audit Committee of the Board of Directors evaluates the
any shareholder via the invitation to the Ordinary General Meeting of
performance, remuneration and independence of the statutory auditor and
Shareholders. Of particular importance are the Corporate Governance
proposes an external auditor to the Board of Directors who will be put
report integrated into the Annual Report and the Financial Report on the
forward for election at the General Meeting of Shareholders. The Audit
past business year. All Kuonis consolidated financial statements are
Committee also annually examines the scope of external auditing, the
compiled in compliance with International Financial Reporting Stand-
auditing plans and the relevant processes, and discusses the audit results
ards (IFRS).
with the external auditors. Representatives of the external auditors

also regularly attend Audit Committee meetings, and attended all four
such meetings in 2011.
02 Financial Report
286 | 287
02_06_09_
C o r p o ra t e
Gover na nce
>>
Information Policy
>>
Information Policy
The reports on first-half results and the nine-month business update are
These activities are conducted with a focus on recently announced
published and dist ributed in the same way as the companys media
developments or financial results, and in full compliance with
releases. These reports contain unaudited financial results which are
SIX Exchange Regulations Directive on Ad-hoc Publicity.
compiled in compliance with IFRS guidelines.

The presentations for financial analysts and investors are regularly
Kuoni Travel Holding Ltd. occasionally publishes information on cur-
archived on the Kuoni Group website. These presentations are not
rent developments within its various business units or on other Group
constantly updated, but document long-term developments within
activit ies. In compliance with the relevant listing regulations of the
the company.
SIX Swiss Exchange, these communications are always issued simultaneously to a broad circle of recipients.
Details of the relevant contacts and the Kuoni Investor Relations mailbox
www.kuoni.com/
investor-presentations
www.kuoni.com/contact
are available on the website.

www.kuoni.com/archive
www.kuoni.com/group-news
An archive containing the companys Annual Reports, half-year reports,

nine-month business updates and further information and presentations
Interested parties may also add their name to the Investor Relations
is available on the website. Kuoni Travel Holding Ltd. also maintains an
e-mail list on the website.
archive of all its published ad-hoc disclosures and other communications

on the website. All this information is publicly available. Interested
parties may also register on the website to receive ad-hoc disclosures and
other published communications by e-mail.
The information contained in these reports and communications is
considered correct at the time of its publication. Kuoni Travel Holding
Ltd. does not update media releases issued in the past in the light of
Subject
Share capital and capital structure
Information on Kuonis shares
Board of Directors
Organisational Regulations
Corporate Governance (including
Compensation Report)
Key dates
www.kuoni.com/group-news
Link
www.kuoni.com/share-capital-structure
www.kuoni.com/share
www.kuoni.com/executive-board
www.kuoni.com/corporate-governance
www.kuoni.com/corporate-governance
www.kuoni.com/financial-calendar
subsequent market or business developments.

As part of its investor relations programme, Kuoni Travel Holding Ltd.
organises:

the presentation of its annual results;
conference calls around the publication of its half-year results,
the nine-month business update or other information;
meetings with investors and analysts, either individually or
in groups at roadshows in key financial centres;
analysts and investors events on specific topics or issues;
presentations at brokers events.
02 Financial Report
288 | 289
Curiosity expands
our reach.
fig. 9:
The estuary of the Colorado River in Mexico has tides of almost ten metres during full moon.
290 | 291
02_06_10_
Compensation Report
02_06_10_01_
compensation report
C o r p o ra t e
Gover na nce
>>
Compensation Report
Since the members of the Board of Directors of Kuoni Travel Holding Ltd.
are independent and are not members of the Group Executive Board,
In view of the fact that Kuoni Travel Holding Ltd. is listed on the SIX
the details of the compensation of the Board of Directors and of the
Swiss Exchange, and in line with the desire of its Board of Directors and
Group Executive Board are presented in two separate sections.
Group Executive Board to maintain a transparent compensation

policy, the present Compensation Report contains all the information
The Kuoni Group strives constantly to be a first-choice employer which is
required under the Swiss Code of Obligations (Article 663b bis and
able to recruit, retain and motivate the best and most professional
Article 663c, Paragraph 3) and Section 5.1 of the Directive on Information
employees around the world who are of the calibre that is essential to
Relating to Corporate Governance issued by SIX Exchange Regulation.
Kuonis continued success.
In its corporate governance provisions and its reporting thereon, the

Kuoni Group also observes the Swiss Code of Best Practice for Corporate
The Role of the Nomination and Compensation Committee
02_06_10_02_
Governance issued by economiesuisse, the umbrella association for

Swiss business and industry. The Kuoni Groups financial statements are
The Kuoni Groups Nomination and Compensation Committee (NCC)
compiled in accordance with International Financial Reporting
is appointed by the Board of Directors and consists solely of independent
Standards (IFRS). The directives issued by each of these bodies and
non-executive members. The present members of the NCC are Heinz
authorities show slight variations in their presentation and inter
Karrer (chairman), Annette Schmmel and Raymond Webster. Board
pretation provisions.
Chairman Henning Boysen also attended all the NCCs meetings in 2011.
The Compensation Report below complies with the provisions of Section
The main duty of the NCC is to monitor the organisation, qualification,
5.1 of the Directive on Information Relating to Corporate Governance
performance and remuneration of executive management and the Board
issued by the SIX Swiss Exchange, and also pays due regard to Annex 1 of
of Directors and to review the terms and conditions of any employee
the Swiss Code of Best Practice for Corporate Governance issued by
share purchase plan. Other tasks performed by the NCC include assess-
economiesuisse. The Report presents the compensation system used by the
ing the performance of the CEO and the further individual members of
Kuoni Group. The compensation paid in accordance with the afore
the Group Executive Board, arranging succession plans for the members
mentioned provisions of the Swiss Code of Obligations is shown and
of the Board of Directors and the Group Executive Board, submitting
commented on in note 02_06_10_06_ (pages 304 to 307).
proposals for and recruiting new members of the Board of Directors and
furthering the development of management as a whole.
The present Compensation Report is intended to inform the public about

the compensation paid by the Kuoni Group. This Compensation Report
The NCC submits to the Board of Directors generally once a year in
will be presented to the 2012 Ordinary General Meeting of Shareholders
December its proposal for the structure and the amounts of compensa-
both for approval as an integral part of the 2011 Annual Report and for
tion to be paid to the members of the Board of Directors and the salaries
its separate consultative voting approval.
of the members of the Group Executive Board (including the relevant

bonus programmes), for the Board of Directors to confirm or modify in
accordance with the NCCs recommendations. It may also enlist the
services of external consultants when doing so. Compensation in this
02 Financial Report
292 | 293
02_06_10_
C o r p o ra t e
Gover na nce
>>
Compensation Report
>>
Compensation Report
sense includes salaries and all further benefits received, including (but
(IPE) system, which grades each function via a position evaluation
not limited to) all shares and similar securities, pension fund payments,
based on a series of criteria: impact (size of organisation, influencing
discretionary and other bonuses, insurances, company vehicles, leaving
scope, financial contribution), communication (need for the position
settlements and further termination agreement benefits.
to communicate, organisational framework), innovation (requirement to

identify, improve or further develop processes, services or products)
The NCC ensures that all executive personnel are compensated fairly,
and knowledge (knowledge required to achieve the positions goals and
appropriately, competitively, in line with their performance and in
make a value contribution, team size and team expertise required,
accordance with the strategic goals of the Kuoni Group. To do so, the NCC
and geographical context in which knowledge must be used).
devises proposals which are submitted to the Board of Directors for

decision, monitors the implementation of employee-related corporate
iii) the future development of the Kuoni Group in performance and
guidelines and upholds the norms of good business management
profitability terms (based on the corresponding Kuoni Group three-year
practice in the long-term interests of the companys shareholders.
planning, in which external market developments are also projected).
The Board of Directors took decisions on a number of major issues in 2011
The members of the Group Executive Board have no right of participation
following corresponding proposals from the NCC. These included:
or consultation in the determining of their compensation (including

any payments due under the relevant bonus programmes). The CEO is,
a more extensive presentation of variable salary components in the
however, generally present when the compensations proposed for
2011 Compensation Report with due regard to the accrual principle,
Group Executive Board members are discussed, and submits correspond-
to ensure maximum transparency;
ing proposals (except for his own compensation amounts).
the application to internal shareholders (subject to the long-term
The decision on the structure and amount of compensation for the members
incentive plan) of the same dilution criteria and considerations
of the Board of Directors is taken by the Board of Directors and laid down
arising from the acquisition of GTA and the associated capital
in a set of regulations. In any vote on the compensation to be paid to a
increase that were applied to external shareholders.
particular member of the Board of Directors, however, the Board member

concerned must observe the relevant general withdrawal/abstention
When determining the compensation levels (including basic salary,
procedures.
incentives and fringe benefits) to be set and the service agreements to

be concluded, the NCC pays particular regard to:
The NCC establishes and maintains a philosophy of payment for services

and performance rendered that is in line with overall company strategy,
i) external comparisons with international corporations of similar
and submits this to the Board of Directors for approval.
size from all business and industry sectors;

ii) internal comparisons with the salaries and further benefits awarded
to management personnel elsewhere throughout the Kuoni Group.
Here the Kuoni Group uses Mercers International Position Evaluation
02 Financial Report
294 | 295
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>>
02_06_10_03_
Compensation Report
compensation for the board of directors
>>
Compensation Report
Compensation for the Group Executive Board
The system applied for the compensation of the Board of Directors is
The compensation guidelines of the Kuoni Group are an integral part
based on the total compensation approach and comprises:
of Kuonis personnel policy, and are intended to motivate and retain
02_06_10_04_
existing employees, to recruit talented new personnel and to help and

encourage all employees to deliver a performance that is of a continu-
a basic salary
long-term incentives (shares) and
ously high level. The Kuoni Groups compensation system is based on the
fringe benefits.
total compensation principle and comprises:
The members of the Board of Directors receive the fixed compensation
a basic salary
proposed by the NCC (generally in December) and approved by the full
short-term incentives (personal performance in relation to quality/
Board whose amount per Board role is specified in the Compensation
quantity goals, and financial results in relation to budget)
Elements of the Board of Directors of Kuoni Travel Holding regulations
long-term incentives (value-adding performance and further
of 18 April 2007. These regulations were devised at Kuonis own discre-
corporate development in relation to the objectives set) and
tion on the basis of the Ethos Survey entitled Executive Remuneration in
fringe benefits.
the 100 Largest Companies listed in Switzerland of November 2006

and a report on compensation practices for chairmen of the board of
The short-term and long-term incentives offered are closely linked to the
directors produced by the CC&T company in 2002. The fixed compen
companys financial development and success. This establishes and
sation awarded to members of the Board of Directors has been confirmed
maintains a commonality of interests between the companys sharehold-
(instead of adjusted) annually since 2007.
ers and its employees.
50% of the total compensation paid to members of the Board of Directors
The Kuoni Group maintains various forms of pension and other retire-
is paid in cash form; the remaining 50% is paid in shares. The issue
ment benefit schemes for employees entitled thereto. These schemes
price of the shares concerned is redefined each year and amounts to the
cover a large majority of the Kuoni Groups personnel. For further details,
average of all closing prices for the last ten trading days of the month
please refer to pages 191 to 193 in the Financial Report.
before the Ordinary General Meeting of Shareholders. The shares are

awarded on the trading day following the day of dividend distribution
It is the duty of the Group Executive Board and of Human Resources
after the Ordinary General Meeting of Shareholders, and are subject to
Management to ensure that Kuoni attracts, retains and further develops
a blocking period of three years.
the best executive talent in the tourism industry within the Kuoni Group.
The members of the Board of Directors are entitled to travel concessions

which are similar in scope to those granted to Kuoni Group employees.
02 Financial Report
296 | 297
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Compensation Report
>>
Compensation Report
A Management Performance Plan (MPP) compensation system has been
On the basis of the first few years of experience with the above, the Board
in place since 2008 for Group Executive Board members and senior
of Directors resolved in August 2010, following a corresponding proposal
management (Senior Vice Presidents and Vice Presidents) groupwide.
from the NCC, that from 2011 onwards a) as a threshold provision, a
Under the MPP, the members of the Group Executive Board will receive
long-term incentive can only be paid if no cumulative EBIT is incurred in
compensation for the 2011 business year which is divided into a fixed
the reference period concerned, and b) the performance factor should
(roughly 40%) and a variable (roughly 60%) performance-based
range, based on actual performance achieved, between a floor of 0.25 and
component. Around one-third of this variable component takes the form
a cap of 3. The basis of this financial performance assessment is the
of a short-term incentive, while the remaining two-thirds take the form
value-based management performance indicator known as the Kuoni
of a long-term incentive.
Economic Profit or KEP.
The short-term incentive is based in equal amounts on the achievement
For clarification purposes, we would like to illustrate here the challenge
of annual financial targets (the 2011 Kuoni Group EBIT compared to
of achieving a Factor 1 result under the above provisions.
budgeted projections, with a possible target achievement of between 0%

and 200%) and personal targets (with a possible target achievement
The KEP target is based primarily on two considerations. First, the
of between 0% and 120%), with payment in April 2012 in cash form. The
KEP target reflects a risk-adjusted expected return (8.5% WACC) that is
personal targets here should always serve to help ensure the overall
based on market and not book value. Secondly, as a profit value,
further development of the business unit concerned. The personal targets
the KEP incorporates not only operating costs but also the costs of capital
for Group Executive Board members are proposed by the CEO, discussed
employed. As such, it represents a far more challenging target than
on the NCC and approved by the Board of Directors. The personal targets
the usual profit criteria.
for the CEO are proposed by the Chairman of the Board of Directors.
These personal targets generally fall into four categories strategy, trans-
The maximum factor of 3 will only be applied if investor expectations
formation, people and stakeholders with their relative weightings
(8.5% WACC) have been clearly exceeded in return terms.
varying according to the function held.

Kuonis long-term incentive (LTI) is designed to be self-financing, i.e. any
The long-term incentive, which uses a Performance Share Plan to assign
additional costs incurred through the LTI are already included in the
the persons entitled thereto a certain number of Kuoni shares at the
KEP result. Kuoni strives to enable its management to participate in the
beginning of each plan period (business year), is based by contrast on the
companys value-adding achievements in accordance with the pay for
value-adding performance achieved over a three-year period extending
performance principle. The LTI plan provides such participation in the
from 2011 to 2013. The number of shares assigned at the beginning of the
event of both over- and underperformance. In accordance with this, a
reference period will be multiplied by a performance factor whose
factor of zero will be applied if the EBIT result falls below a specified
value will depend on the subsequent performance achieved in the period
level. Based on the entitlement of international plan participants and the
concerned.
past history of Kuonis long-term incentive systems, the current long-term

incentive plan has a maximum factor of 3, to ensure that significant
overperformance over a longer period can continue to be rewarded
appropriately.
02 Financial Report
298 | 299
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Compensation Report
>>
Compensation Report
The calibration of the KEP target for the long-term incentive is essentially
Contractual obligations dating from 2005 exist in respect of one member
based on an investors perspective which considers not only Kuoni but
of the Group Executive Board. Under these obligations, should their
also comparable companies with similar business portfolios. This process
employment be terminated by the employer, the Group Executive Board
also pays due regard to the growth expectations, risk profiles, investment
member concerned will receive six monthly salaries plus one monthly
levels and profitability levels that are typical of the industry. All such
salary for every year of their age after age 47 until age 56. Apart from this,
considerations flow directly into the Kuoni KEP target-setting process.
no member of the Group Executive Board or the Board of Directors

is entitled to any benefits in the event of a change of control or to any
The KEP target-setting process assumes that investors expect a risk-
leaving settlement, because no such agreements have been concluded
adjusted return on their investment which is based on market value
since 2005.
(and not book value), and translates such expected returns over a
three-year period into operational KEP targets. The KEP target for the
No share options have been issued since 2005.
Kuoni Group for the 20112013 period was devised with the assistance
of independent external consultants Hostettler Kramarsch & Partner,
The Kuoni Groups compensation programmes have been designed to
Zurich, based on shareholders expectations (external perspective,
ensure that they are comparable and competitive with those of a
8.5% WACC).
benchmark group of other world-class corporations of similar rank and

renown which are also constantly on the lookout for management
The shares concerned will be awarded in April 2014, based on actual
talent worldwide.
performance in the corresponding reference period. Once awarded,

the shares will not be subject to any further vesting period.
The total compensation (including basic salary, incentives and fringe

benefits) paid to members of the Group Executive Board is deter-
The LTI plan is intended to provide the companys top management with
mined with due regard to a market comparison conducted by Mercer
a further incentive to contribute to the success and business health of
Frankfurt management consultants. This comparison considers
the Kuoni Group, and thereby enhance the Groups market value, to the
international corporations of comparable size from all industry sectors.
benefit of its shareholders. The plan should also enable the companys
Mercer Deutschland had one further mandate at Kuoni Travel
top management to participate in the Kuoni Groups long-term success.
Holding Ltd. in 2011: a position evaluation and salary benchmarking

for various vice presidents and senior vice presidents of the
In the event of a change of control of the company, the present compen
Kuoni Group, which was commissioned as part of the corporate
sation system excludes on principle the conclusion of any generous
restructuring and the post-merger integration of GTA.
golden parachute agreements. Apart from any possible legal obligations,

the system also excludes any kind of severance payments in the event
of termination of employment.
02 Financial Report
300 | 301
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02_06_10_05_
Compensation Report
Value-Based Management
>>
Compensation Report
A KEP target which reflects investors expectations of a return on their

invested capital that is appropriate to their investment risk is set as
The value-based management approach at the Kuoni Group is founded
part of the annual strategic planning process. Based on Kuonis enter-
on the economic profit concept. This aims to keep top management
prise value, a KEP target is set for the Group as a whole whose achieve-
aligned as closely as possible to creating long-term added value on behalf
ment will provide the companys shareholders with a return on their
of the Groups owners. The central management performance indicator
investment that is at least as high as Kuonis capital costs (8.5% WACC).
here is known as Kuoni Economic Profit or KEP. KEP is calculated from

net operating profit after tax (NOPAT) less the average cost of capital
The KEP and ROIC for the Kuoni Group are calculated every quarter and
invested in operations. The Group-level weighted average cost of capital
compared with the corresponding budgeted and prior-year figures as
(WACC) has been set at a sustainable rate of 8.5%, which was calculated
an integral part of the reporting process. The development of KEP over
by IFBC AG, Zurich. IFBC AG, Zurich had one further mandate at
time (known as delta KEP) and changes in the difference between ROIC
Kuoni Travel Holding Ltd. in 2011: a purchase price allocation for the
and WACC reveal the value added by the Group as a whole and its
acquisition of Gullivers Travel Associates.
divisions. Linking these results to the operational value drivers of

turnover growth, cost efficiency and capital efficiency also reveals how
Specific WACC rates that accommodate economic and currency consid-
such value was achieved.
erations have also been set for the Groups individual divisions and
markets. NOPAT divided by the average capital invested in operations
The presentation of KEP and ROIC trends for the Kuoni Group is a key
gives return on invested capital (ROIC), which is compared with the
part of Kuonis external communications with financial analysts and
WACC for the Kuoni Group and/or its constituent units to determine
investors. This clearly and bindingly illustrates the Kuoni Groups focus
value-adding performance.
on sustainable value creation to the outside world.
Kuoni has integrated this value-based management approach founded on
The provision of a long-term incentive plan based on the absolute
the KEP performance indicator into its entire management process, to
achievement of KEP targets provides senior management with an
ensure that it has a sustainable value-adding effect. To this end, planning
attractive incentive that is firmly aligned to ensuring sustainable
and budgeting, performance measurement, internal and external
value creation within the Kuoni Group.
communications and the long-term incentive (LTI) compensation for

senior management staff have all been consistently adapted to the
sustainable value-adding philosophy.
02 Financial Report
302 | 303
02_06_10_
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>>
02_06_10_06_
Compensation Report
>>
Compensation Report
Basic cash
compensation
(fixed)
Compensation
Compensation to members of the Board of Directors
For their service in 2011, the members of the Board of Directors received
the compensation shown in the table below.
The aggregate compensation paid to the members of the Board of
Directors in 2011 amounted to CHF 1.6 million (2010: CHF 1.6 million).
No compensation was paid in 2011 to any members of the Board of
Directors who had left in the prior period or earlier. Kuoni Travel Holding
Ltd. and its Group companies had not granted any collateral, loans,
advances or credits to members of the Board of Directors or to persons
associated with them as at 31 December 2011. No options were allocated in the year under review.
Share-based
compensation
(fixed)1
Social security
contributions
Total
CHF 1000
Number of shares
CHF 1000
CHF 1000
CHF 1000
2011
Wolfgang Beeser
Heinz Karrer
John Lindquist
David Schnell
Annette Schmmel
Raymond D. Webster
Total
276
98
112
84
157
84
84
895
593
214
237
178
297
178
178
1875
210
76
84
63
105
63
63
664
30
9
13
10
0
10
10
82
516
183
209
157
262
157
157
1641
2010
Wolfgang Beeser
Heinz Karrer
John Lindquist
David Schnell
Annette Schmmel
Raymond D. Webster
Total
276
98
111
84
157
84
84
894
603
217
241
181
302
181
181
1906
210
76
84
63
105
63
63
664
31
9
13
10
0
10
10
83
517
183
208
157
262
157
157
1641
1 The shares were valued at a market value of

CHF 354 (2010: CHF 348). The market value calculated
restricted availability at the time of their assignment.
Compensation to the Group Executive Board
The NCCs general authorities for determining the compensation to

be paid to the members of the Group Executive Board are specified
on page 293. The aggregate compensation to the members of the Group
Executive Board in 2011 amounted to CHF 7.8 million. The highest
individual total compensation in 2011 amounted to CHF 2.1 million.
The presentation of the compensation paid to members of the Group
Executive Board was modified in the course of 2011. Whilst in previous
years the compensation stated was that actually paid in the business year
concerned, from 2011 onwards the cash-form variable compensation
awarded for the year is also included using the accrual method, while the
share-based variable compensation is also included based on the shares
02 Financial Report
304 | 305
02_06_10_
C o r p o ra t e
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>>
Compensation Report
The compensation shown includes basic salaries for 2011 and the variable
year concerned. Figures for 2010 have been restated accordingly. The
compensation payable for the 2011 business year. Share-based compen
change resulted in adjustments to the variable compensation and social
sation includes the registered shares B assigned for 2011, which will be
security contribution amounts.
modified and awarded based on actual performance in a subsequent

in cash2
in shares3
Total
2010
CHF 1000
in cash6
in shares7
Total

paid STI variable compensation in cash form of
CHF 1.1 million in 2011 for the prior-year period.
The cash-form variable compensation paid to CEO
Peter Rothwell amounted to CHF 0.4 million.
assigned 8 975 registered shares B in the 2011
business year. These shares were valued at a market
price of CHF 292. The market value calculated
restricted availability at the time of their assignment
and an 8% discount in view of the diluting effect
of the capital increase. The share-based compen
sation for 2011 will be awarded at the end of the
three-year reference period in spring 2014. A total
of 3 758 registered shares B (worth CHF 1.7 million)
were awarded to members of the present Group
Executive Board in 2011 from the share-based
compensation assigned in 2008. (Since CEO Peter
Rothwell was not appointed to the Group Executive
Board until 2009, he was not awarded any such
shares in 2011.)
Compensation Report
assigned for the achievement of the corresponding targets in the business
2011
CHF 1000
1 Five members.
>>
4 One member of the Group Executive Board is

entitled to take early retirement in accordance with
the regulations of the Patronale Frsorgestiftung.
The non-contribution-based costs of the corres
ponding benefits are included in the pension fund
contributions shown. The corresponding regulations have not been extended to any new Group
Executive Board member since 2005.
5 Six members. Peter Meier joined the Group
Executive Board on 1 November 2010, so the
amounts shown include the compensation paid to
him for a two-month period. The compensation
paid to Max E. Katz is included up until his retirement
(on 31 December 2010).
6 The members of the Group Executive Board
were paid STI variable compensation in cash form
of CHF 1.2 million in 2010 for the previous year.
The cash-form variable compensation paid to CEO
Peter Rothwell amounted to CHF 0.5 million.
02 Financial Report
Group Executive
Board1
Of which:
Peter Rothwell
3234
900
659
2617
662
638
39
0
7849
232
714
110
114
6
0
2076
Group Executive
Board5
Of which:
Peter Rothwell
3742
900
1261
2047
528
397
28
0
8003
424
507
111
111
6
0
2059
three-year reference period. The registered shares B awarded in 2011 from

the share-based compensation for 2008 are presented in footnote 3.
Compensation of CHF 0.1 million was paid in 2011 to one member of the
Group Executive Board who had left in the prior period. Apart from this,
no compensation was paid to any Group Executive Board member who
had left in the prior period or earlier. Neither Kuoni Travel Holding Ltd.
nor its Group companies had granted any collateral, loans, advances
or credits to any member of the Group Executive Board or to any persons
associated with them as at 31 December 2011. No options were allocated in the year under review.

assigned 8 964 registered shares B in the 2010
business year. These shares were valued at a market
price of CHF 228. The market value calculated includes
a 16% discount in view of the shares restricted
availability at the time of their assignment. The
share-based compensation for 2010 will be awarded
at the end of the three-year reference period in
spring 2013. No shares were awarded in 2010. In
accordance with the regulations valid at the time,
share-based compensation was awarded in the
following business year. The present compensation
system was first adopted for the 2008 business year.
8 Two members of the Group Executive Board were
entitled to take early retirement in accordance with
the regulations of the Patronale Frsorgestiftung.
The non-contribution-based costs of the corres
ponding benefits are included in the pension fund
contributions shown. The corresponding regulations have not been extended to any new Group
Executive Board member since 2005.
306 | 307
02_06_10_
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>>
02_06_10_07_
Compensation Report
>>
Share OwnerShip
Board of Directors and Group Executive Board
Registered share B as at 31 December
2011
Board of Directors
Wolfgang Beeser
Heinz Karrer
John Lindquist
David Schnell
Annette Schmmel
Raymond D. Webster
Leif Vase Larsen
Stefan Leser
Rolf Schafroth
Peter Meier
Total
2010
Board of Directors
Wolfgang Beeser
Heinz Karrer
John Lindquist
David Schnell
Annette Schmmel
Raymond D. Webster
Max E. Katz1
Leif Vase Larsen
Stefan Leser
Rolf Schafroth
Peter Meier2
Total
1 Member of the Group Executive Board who left
the company during 2010.
Compensation Report
Number of shares
Other equity instruments
Number of shares
Voting rights
Number of shares
4283
1052
1167
1146
2647
1326
1346
0.09%
0.02%
0.02%
0.02%
0.05%
0.03%
0.03%
0
0
0
0
0
0
0
808
3329
1768
1
0.02%
0.07%
0.04%
0.00%
0
0
0
0
18873
0.38%
3190
838
930
698
2350
1148
848
0.08%
0.02%
0.02%
0.02%
0.06%
0.03%
0.02%
0
0
0
0
0
0
0
3243
505
1150
460
1
0.09%
0.01%
0.03%
0.01%
0.00%
0
0
0
0
0
15361
0.40%
Board of Directors (non-exectuve members only)
Voting rights
no blocking period
31 Dec 2011
31 Dec 2010
6279
0
2907
1906
1875
3727
1462
2907
1906
0
31 Dec 2011
31 Dec 2010
5757
0
149
0
0
4062
1148
149
0
0
Group Exectuve Board (current)
Number of shares
no blocking period
0%
0%
2 Member of the Group Executive Board newly

appointed during 2010.
02 Financial Report
308 | 309
Getting in touch
with the earth again.
fig. 10:
Lower part of Talimu River in China forming the border of the Taklimakan dune field.
310 | 311
02_07_
Appendix
02_07_01_
agenda 2012
C o r p o ra t e
Gover na nce
The Financial Report and the information on Corporate
Governance constitute an integral part of the Kuoni Group

Annual Report.
This Annual Report is also available in German.
The German original shall prevail.
Der Geschftsbericht ist auch in deutscher Sprache erhltlich.
Massgebend ist der deutsche Originaltext.
Agenda 2012
The Kuoni Group will be providing information on its further
business performance on the following dates:
Annual General Meeting
photography notes
17 April 2012
Half-year-results 23 August 2012
In this chapter, the pictures are again

taken from the archive of George Steinmetz. The multi-award winning photographer studied geophysics at Stanford University. He began his career
by hitchhiking across Africa for over
two years. Since then, he has travelled
to unexplored terrain on all seven
continents for his photo reportages.
In more recent years, he has specialised
in aerial photography with the aid of
lightweight aircraft. Using motorised
paragliders, he gains access to territories that remain closed to all other
means of transport.
Nine-month Business Update
In the second chapter of the Kuoni Annual Report 2011, the birds eye panoramas are primarily dedicated to uninhabited natural landscapes. They
are classic places of longing situated
amidst untouched nature, which have
embodied the aesthetic feeling of the
sublime since the landscape painting
of Romanticism.
laurence.bienz@kuoni.com
08 November 2012
Investor Relations
Laurence Bienz
Neue Hard 7, CH-8010 Zurich
tel +41 (0)44 277 45 29
fax +41 (0)44 277 40 31
02 Financial Report
312 | 313
02 Financial Report
06_03_
Colophon
Publisher:
Corporate Communications

Neue Hard 7, CH-8010 Zurich
tel +41(0) 44 277 43 63
fax +41(0) 44 272 39 91
www.kuoni.com
Twitter: www.twitter.com/kuonigroup
Facebook: www.facebook.com/KuoniGroup
Idea, Development, Creative Direction:
Wolfgang Scheppe
Concept:
Wolfgang Scheppe, Remo Masala
Authors:
01: Peter Brun, Heidi Elsenhuber, Stephanie Keller,
Matthias Leisinger, Simon Marquard, Wolfgang Scheppe
02: Laurence Bienz, Alexander Brochier, Ren Hsler, Michael Mller
03: Alexander Brochier, Elisenda Casellas, Oliver Fischer,
Wolfgang Scheppe, Silvana Ulber
04: Wolfgang Scheppe
05: Wolfgang Scheppe
Illustrations:
Sara Codutti
Graphic Design:
Andrea Buran, Claudine Iselin, Marie Letz
Translations:
Paul Day, Fiona Elliott, Ishbel Flett, Barbara Hau, James Knight,
Catherine Schelbert, Julia Thorson
Project Manager:
Simon Marquard
Production:
Helga Sterr
Photography:
George Steinmetz, Anonymous (Collection W.S.)
Typesetting:
Andrea Buran, Claudine Iselin, Marie Letz
Programming:
Mario Klingemann
06 appendix

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FINANCIAL REPORT

50 facts and figures for the Kuoni Group in 2011

[ Average number of employees in 2011 ]

KUONI ANNUAL REPORT # 2011

Financial Report 132

Kuoni Principles (2) 133

The topic of Continuity 134

Comment Financial Report (Group) 136

Five-Year Summary of Key Data

Pro Forma Figures 162

Kuoni Group 166

Statement of Financial Position

Income Statement 168

Statement of Comprehensive Income 169

Statement of Changes in Equity

Corporate Governance 258

Statement of Cash Flows 171

Group Structure and Shareholders

Accounting Principles 172

Capital Structure 261

Notes to the Consolidated

Board of Directors 268

Financial Statements 179

The Group Executive Board

Principal Subsidiaries and Associates 230

Compensation, Shares and Loans

Report of the Statutory Auditor

Shareholders Participation Rights

Changes of Control and

Kuoni Travel Holding Ltd.

Statement of Financial Position

Information Policy 287

Income Statement 240

Compensation Report 292

Agenda 2012 313

Board of Directors Proposal for the

Defence Measures 285

Appropriation of Retained Earnings 253

Report of the Statutory Auditor

Kuoni Annual Report # 2011

Kuoni Principles (2)

Business comes and goes.

Kuoni Annual Report # 2011

Kuoni is here for the long term.

Kuoni Annual Report # 2011

SUBSTANTIAL INCREASE IN TURNOVER AND EARNINGS

business year 2011

investors and consumers. Against this background, the emerging markets

The Kuoni Group delivered an encouraging business performance for 2011

ties over the ramifications of the government debt crisis in Europe

in a very challenging market environment. Thanks to increased turnover

had a number of negative effects, including increased volatility in the

exchange rates of various currencies against the Swiss franc, which

clear improvement on 2010. With the depressed general economic climate

Bank intervened on 6 September.

GLOBAL TOURIST SECTOR DEFIES MUTED ECONOMIC GROWTH

The United Nations World Tourism Organization (UNWTO) has projected

CHF 5111 million, a 28% nominal increase on 2010. The effect of a

strongly appreciating Swiss franc eroded 8.3% of the Group turnover.

despite further unforeseen unfavourable events, the global tourism sector

Acquisitions raised Group turnover by 35%. Organic turnover

showed largely positive trends. The United Nations World Tourism

growth amounted to 1.2%, and was driven by the continued sizeable

Organization (UNWTO) expects international arrivals for 2011 to show