53
The annual report is also available in French and in German. Le rapport annuel est également disponible en français et en allemand. Der Geschäftsbericht ist auch in deutscher und französischer Sprache erhältlich. Kuoni Travel Holding Ltd. Neue Hard 7 CH-8010 Zurich Phone: (+41) 1-277 44 44 Fax: (+41) 1-271 52 82 Internet: www.kuoni.com Impressum: Edited and published by: Kuoni Travel Holding Ltd., Corporate Communications Design/realisation/typesetting: Kuoni Travel Ltd., Brochure Production Lithography: NC AG, Urdorf Printing: Benteli Hallwag Druck AG, Berne Photography: Blue Planet, Zurich DigitalVision, London Prisma, Zurich The Image Bank, Zurich Kuoni Bildarchiv, Zurich Katja Snozzi, Berne ANNUAL REPORT 2000

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Page 1: ANNUAL REPORT 2000personal.ie.cuhk.edu.hk/~sjaggi/misc/travel/kuoni2.pdf · Photography: Blue Planet, Zurich DigitalVision, London Prisma, Zurich The Image Bank, Zurich ... Dorking

The annual report is also available

in French and in German.

Le rapport annuel est également

disponible en français et en allemand.

Der Geschäftsbericht ist auch in

deutscher und französischer Sprache

erhältlich.

Kuoni Travel Holding Ltd.

Neue Hard 7

CH-8010 Zurich

Phone: (+41) 1-277 44 44

Fax: (+41) 1-271 52 82

Internet: www.kuoni.com

Impressum:

Edited and published by:

Kuoni Travel Holding Ltd.,

Corporate Communications

Design/realisation/typesetting:

Kuoni Travel Ltd.,

Brochure Production

Lithography:

NC AG, Urdorf

Printing:

Benteli Hallwag Druck AG, Berne

Photography:

Blue Planet, Zurich

DigitalVision, London

Prisma, Zurich

The Image Bank, Zurich

Kuoni Bildarchiv, Zurich

Katja Snozzi, Berne

ANNUAL REPORT2000

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St. Louis●

Antigua●Barbados● Bangkok

Singapore

Hong KongMumbai●●●

Taipei●

Nairobi●

Zurich●●●

Vienna●●●

Genoa●

Madrid●●

Stockholm●

Amsterdam●●

Paris ●●Cologne●

Incoming●Leisure Travel

Head offices and Incoming officesMarch 2001

● Business Travel● Hotels● Group Head Office●

Barcelona●

Nice ●

Athens●●

Budapest●●●

Rome●

Geneva ●

London

●Dorking ●

Seoul●Atlanta●

New York●

Zurich●

Europe in detail

Copenhagen ●

●●●

●●●

Tokyo●Osaka ●

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C O N T E N T S

Kuoni at one glance

Mission statement 5

Key figures 6

Group organisation 8

Executive and corporate bodies

Board of Directors 11

Executive Board 12

Reporting

Report of the Chairman and the President 17

Group 23

Reporting according to Strategic Business Units (SBU)

SBU Switzerland 31

SBU United Kingdom & North America 39

SBU Europe 45

SBU Business Travel 53

SBU Incoming & Asia 57

Information Technology 61

Market environment

The European travel market 65

E-commerce 68

Company

Corporate Governance 71

Business activities 75

Staff 78

Environmental care 85

Social commitment 89

Addresses 92

Kuoni glossary 100

3

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G R O U P P H I L O S O P H Y

Mission statement

We are committed to creating best value for people:

our customers, employees, shareholders and business partners.

We strive to be successful in our core business activities:

Leisure Travel, Business Travel and Incoming.

We motivate our staff by encouraging entrepreneurship and

innovation at all levels.

We think and act internationally.

We strive to enhance shareholder value.

We support environmentally friendly solutions.

Kuoni stands for reliability, best value for money, quality and

fairness in business.

5

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7K E Y F I G U R E S6

Kuoni at one glance

Kuoni Group

(consolidated as at 31 December)

Turnover

By Strategic Business Unit:

Switzerland

United Kingdom & North America

Europe

Business Travel

Incoming & Asia

By Activities:

Leisure Travel

Business Travel

Incoming

Earnings before interest, taxes and

amortisation of goodwill (EBITA)

By Strategic Business Unit:

Switzerland

United Kingdom & North America

Europe

Business Travel

Incoming & Asia

Group

Ordinary group profit

Group profit

Pre-goodwill earnings

Cash flow

Investment in tangible and

intangible assets

Balance sheet total

Average number of personnel

2000CHF m

4,113

1,003

1,091

1,161

184

674

3,376

184

553

174.7

46.9

106.7

–3.3

19.2

22.4

–17.2

115.1

115.1

155.5

198.5

87.2

2,251

7,669

1999

CHF m

3,515

911

918

1,067

168

451

2,987

168

360

152.8

37.5

92.2

17.1

15.5

5.5

–15.0

113.9

87.1

144.0

156.5

168.9

1,806

6,528

2000CHF

428,940,340

102,463,080

12.41

62.03

7.20

35.97

57.51

287.55

2.401)

12.001)

970

645

700

2,240 m

2,083 m

1999

CHF

251,158,551

112,180,966

9.78

48.90

7.12

35.61

43.79

218.95

2.20

11.00

6,7902)

5,0502)

6,6102)

2,115 m

1,330 m

Kuoni Travel Holding Ltd.

Investment in equity holdings

Net profit for the year

Information for investors

Consolidated cash flow

per registered share A

per registered share B

Ordinary group profit

per registered share A

per registered share B

Consolidated shareholders’ equity

per registered share A

per registered share B

Dividend

per registered share A

per registered share B

Stock market prices

registered share B high

low

at year end

Stock market capitalisation 31 Dec

Annual trading volume

1) Proposal of the Board of Directors to the General Meeting of Shareholders

2) Former capital structure

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G R O U P O R G A N I S A T I O N8 9

CorporateCommunications

Internal auditors

Assistant to CEO

Human Resources

President of the Executive Board and

Chief Executive Officer

Hans Lerch*

Chairman of the Board of Directors

Daniel Affolter

*) Member of the Executive Board

**) Member of the Group Management

March 2001

Scandinavia

Denmark

Alletiders Rejser A/S

Dane Tours

Kisbye Rejser

Sweden

Apollo Resor AB

Novair

FinanceKuoni Group

Max E. Katz*

InformationTechnology

(IT)

Konrad Iten**

New Markets

Hans Lerch*

Asia

P&O Travel Ltd.,Hong Kong

P&O Travel Pte. Ltd.,Singapore

India

SOTCSITA World Travel (Kuoni Travel India Ltd.)

Switzerland

Kuoni Reisen AG

Edelweiss Air AG

Manta Reisen AG

Privat Safaris Reisebüro AG

PRS AG

Railtour Suisse SA

Reisebüro Popularis

Rotunda Tours AG

Europe

Kuoni Reisen AGIncoming Services

Greece

Hellenic Tours S.A.

Hellenic Island Services Ltd.

Kenya

Private Safaris (East Africa) Ltd.

USA

T PRO

Charter Activities

Thomas Stirnimann*

United Kingdom

Sue Biggs**

Kuoni Travel Ltd.

Voyages Jules Verne

Caribbean

Kuoni Caribbean Hotels Ltd.

USA

Intrav, Inc.

Germany

BTI Euro Lloyd(Euro Lloyd Reisebüro GmbH & Co. KG)

Switzerland

BTI Kuoni Switzer-land (KuoniGeschäftsreisen AG)

Austria

BTI Austria(Reisebüro Kuoni Ges.m.b.H.)

Hungary

BTI Hungary(Kuoni Utazási Iroda Kft.)

France

Voyages Kuoni SA

Italy

Kuoni Gastaldi Tours S.p.A.

Netherlands

Special Traffic(Kuoni Travel Nederland B.V.)

Spain

Viajes Kuoni S.A.

Hungary

N-U-R Neckermann Utazás Kft.

SpecialistsEurope

a.i. Hans Lerch*

Business Travel

Reto Bacher*

Incoming

Ibrahim Atallah**

Specialists United Kingdom& North America

Peter Diethelm*

Austria

N-U-R NeckermannReisen AG

Reisebüro Kuoni Ges.m.b.H.

RestplatzbörseGes.m.b.H

Cosmos Ges.m.b.H

Allround Travel Inter-national Ges.m.b.H.

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E X E C U T I V E A N D C O R P O R A T E B O D I E S

Board of Directors

11

Heinz Müller**, Vice-Chairman, Term expires 2002

former Executive Vice-President UBS

Claudia Depuoz* Term expires 2002

Senior Vice-President UTO-Insurance Companies

Hans Eisenring** Term expires 2002

dipl. Ing. ETH, former President of the SBB Executive Board

Geoffrey H. Lipman* Term expires 2003

CEO Green Globe 21

Prof. Dr. Gilbert Probst** Term expires 2002

Professor for Economic Sciences University of Geneva

Dr. iur. Roland Rasi* Term expires 2001

Lawyer and economic consultant

Tommaso Zanzotto** Term expires 2003

Partner und President of Toscana Ville & Castelli

*) Member of the Remuneration Committee

**) Member of the Audit Committee

Born 1954

1984 qualified as lawyer, University of Zurich

1988 Partner in the law practice «Bernhard, Affolter und Partner» in Uster

1990 Elected to the Board of Directors of Kuoni Reisen AG, Zurich

1995 Chairman of the Board of Directors ofKuoni Travel Holding Ltd., Zurich

1997 Member of the Executive Committee ofthe World Travel and Tourism Council (WTTC)

1999 Member of the International AdvisoryCouncil for Tourism (IACT), Singapore

Term expires 2003

Daniel Affolter, Chairman

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13E X E C U T I V E A N D C O R P O R A T E B O D I E S

Executive Board

12

Born 1951

1967 Entrance at Kuoni as apprentice

1970–71 Stay at Kuoni United Kingdom

1971–81 Manager and Operational Branch HeadBusiness Travel

1981–86 Vice-Director General Management (abroad), Kuoni Reisen AG

1986–96 Managing Director Kuoni Reisen GmbH,Germany

1989 Qualified as Bachelor of Business Administration (B.B.A.)

1996–98 Vice-President Business Travel,Kuoni Reisen AG

In present function since 1999

Born 1941

St. Gallen School of Transport

Training at Swissair

1962 Entrance at Kuoni as Tour Manager

1966–74 Head of Tour Operating,Kuoni United Kingdom

1974–84 Chairman, Kuoni United Kingdom

In present function since 1984

Born 1955

HWV Zurich

1978 Graduated as Business Economist

1978–81 Brand Manager Unilever

1981–87 Regional Controller for Jacobs Suchard in several countries

1987–91 Vice-President Finance and Member of Executive Board at Effems AG

1991–95 Vice-President Finance and Member of Executive Board at Hürlimann Holding AG

1995 Entrance at Kuoni as Chief Financial Officer

In present function since 1995

Born 1962

1978 Entrance at Kuoni as apprentice

1981–87 Travel Advisor, Kuoni Reisen AG

1987 Purchaser North America,Kuoni Reisen AG

1989 Product Manager Travac AG

1991 Head of Marketing/Sales,Kuoni Reisen AG

1994 Head of Overseas division,Kuoni Reisen AG

1995 Head of Tour Operating Department andmember of Kuoni Reisen AG’s executive management

In present function since 1999

Reto BacherExecutive Vice-PresidentBusiness Travel

Born 1950

1970 Entrance at Kuonias Manager Incoming

1972–85 Management functions in Tokyo, Hong Kong and Singapore,ultimately as Regional Manager for the Far East

1986–89 Vice-President Incoming,Kuoni Reisen AG

1989–95 Vice-President Tour Operating,Kuoni Reisen AG

1995 Executive Vice-President SBU Incoming,Kuoni Travel Holding Ltd.

1996 Executive Vice-President SBU Switzerland and Incoming, Kuoni Travel Holding Ltd.

In present function since 1999

Peter DiethelmExecutive Vice-PresidentSpecialists United Kingdom &North America

Max E. KatzExecutive Vice-PresidentChief Financial Officer

Thomas StirnimannExecutive Vice-PresidentCharter Activities

Hans LerchPresident of the Executive Board and Chief Executive Officer

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15E X E C U T I V E A N D C O R P O R A T E B O D I E S14

Born 1957

1976 Completed commercial training at Schweizerische Kreditanstalt

1977–79 Accountant/controller at Breves Treuhand

1979 Qualified as accountant/controller

1979–90 Various posts at Phibro Energy AG, Zug,ultimately as Head of Information Technology

1983 Qualified as analyst/programmer

1990–93 Managing Director of ITCO Informatic AG,Baar

1994 Entrance at Kuoni as Project Leader Incoming

1995 CFO, CIO and member of Incoming’s executivemanagement

1997 Vice-President Information Technology,Kuoni Reisen AG

In present function since 1999

Konrad ItenSenior Vice-PresidentChief Information Officer

Group Management

Born 1949

1974 Graduated as engineer agronomy at the University of Alexandria

1975–78 Sales Manager at Naggar Travel Agencyin Cairo

1979 Entrance at Kuoni as Sales RepresentativeIncoming

1984 Manager Middle East Department

1987 Manager Middle East and India Department

1990 General Manager Kuoni Far East

1997 Head of Asia/Pacific Kuoni Reisen AG,with responsibility for all Asian markets including Japan

In present function since 1999

Ibrahim AtallahSenior Vice-PresidentIncoming Services

Born 1956

1978 Graduated in English and American studies at the University of Nottingham,followed by postgraduation in tourism

1979 Entrance into the travel industry at Budget Holidays, London

1982 Entrance at Kuoni United Kingdom as Product Executive USA

1984 Product Manager

1988 Senior Product Manager

1989 Executive Product Director

1994 Deputy Managing Director

1999 Managing Director Tour Operating

Member of the Group Management since 2001

Sue BiggsManaging Director Kuoni United Kingdom

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R E P O R T O F T H E C H A I R M A N A N D T H E P R E S I D E N T

With a broad spread into the future

Dear shareholders,

the year 2000 will go down as another successful year in Kuoni’s

history. Turnover and earnings before interest, taxes and amorti-

sation of goodwill (EBITA) reached record levels, and the three

Strategic Business Units (SBUs) – Switzerland, United Kingdom &

North America and Incoming & Asia – all posted extremely good

results. The SBU Business Travel can also look back on a success-

ful year in which it exceeded our high expectations. By contrast,

business in some European countries and in the SBU Europe as a

whole was disappointing.

Stronger Corporate Governance,more efficient group management

The year 2000 saw the Board of Directors taking further measures

in the area of corporate governance (see also pages 71–73);

17

Daniel Affolter, (left)Chairman of the Board of Directors

Hans Lerch, (right)President of the Executive Board andChief Executive Officer

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ting and retailing. About one half of the turnover in the tour ope-

rating business comes from our specialist tour operators which,

like Kuoni UK for example, concentrate on flexible, high-value pro-

ducts at the upper end of the market. Charter and volume business

generates the other half. Specialist operators sometimes also make

use of charter flights, so it is not

possible to separate the two

activities absolutely; but specia-

list business involves fewer risks

and last year helped to compen-

sate for the partly disappointing

European charter business.

The broad geographical spread of the Group across 25 coun-

tries has a similar effect to our diversified range of activities: suc-

cesses in certain markets help to smooth out difficulties in others.

The Kuoni Group’s risk portfolio is thus very well balanced overall.

Welcome consolidation

The pace of acquisition activity slowed slightly towards the end of

the 2000 financial year. On the one hand, this is due to the fact that

acquisitions are always dependent on the opportunities that arise;

on the other hand, both the Board of Directors and the Executive

Board believe that the now started phase of consolidation is very

desirable.

The operationally challenging integration of the

companies acquired since mid-1999 into

the Group is in full swing. The Kuoni

Group has made the following

new acquisitions over the last

12 months:

• SITA World Travel of New

Delhi, taken over on 1 April

2000, has developed very well

since the successful merger with

Kuoni Travel (India) Ltd.

19R E P O R T O F T H E C H A I R M A N A N D T H E P R E S I D E N T

these included the creation of two new committees: the Audit

Committee and the Remuneration Committee. Both are made up of

independent (non-executive) members of the Board of Directors

and both focus in depth on the specialist areas concerned. Respon-

sibility remains with the Board of Directors as a whole.

In the second half of the year, we also initiated organisational

changes at the group level. The new organisational structure,

which is different to the financial reporting structure for the year

2000, is now focused on activities rather than geographical regions.

This allows us to manage individual

group activities even more efficiently.

Hans Lerch is the new head of the

Group Units “New Markets” (Asia and

India) and, ad interim, “Specialists

Europe”. Marcel Herter has switched

from heading this latter division to the

management team of the “Business

Travel” Group Unit; in this function he

is no longer a member of the Executive

Board. Thomas Stirnimann is now re-

sponsible for Scandinavia and Austria as

well as for group activities in Switzer-

land. Our British colleague Sue Biggs,

Managing Director of Kuoni UK, joined Group Management on

1 January 2001.

Broadly based risk

The Kuoni Group’s core activities are: Leisure travel, Business

travel and Incoming services. We are convinced that this diversifica-

tion across a wide variety of travel services once again proved

its worth during the period under review, contributing greatly to

the fact that the group was able to meet our high expectations

in what was a difficult year for Europe.

The lion’s share of group turnover, 82.1%, was generated by

our core business of leisure travel, which includes both tour opera-

18

“ The Kuoni Group’s

risk portfolio is

very well balanced.”

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Thank you very much!

Once again all of our staff members deserve a great deal of thanks.

We would also like to welcome more than 1,200 new colleagues

who have joined the Kuoni family as a result of our acquisitions

over the course of the year. New owners often have new ideas that

inevitably bring changes, and we very much appreciate the positive

attitude shown by staff all over the world towards the changeover

and towards Kuoni’s culture.

We would like to thank our shareholders for the loyalty and

confidence they have shown in the company. The Board of Direc-

tors and the Executive Board will continue in future to do all

they can to keep the Kuoni Group on a successful course and to

add further value.

Daniel Affolter Hans LerchChairman of the Board of Directors President of the Executive Board and

Chief Executive Officer

21R E P O R T O F T H E C H A I R M A N A N D T H E P R E S I D E N T

• On 1 July 2000 Kuoni pur-

chased T PRO of New York,

the third largest provider in the

US incoming market. This firm,

too, performed very well in the

financial year under review.

• In Scandinavia, we have

been 100% owners of the Apollo

Group only since 1 January 2001.

The year 2000 was very difficult

for this company; until the end of the reporting period we only

owned a 45% stake in Apollo and thus could not influence

its performance. Now that we have taken over the company com-

pletely, however, we are carrying out a thorough reorganisation.

Successes in charter business and on the Web

Our Swiss charter airline Edelweiss Air very successfully expanded

into long-haul operations with the purchase of an Airbus A330-200.

Since the beginning of November 2000 the new plane has been

flying with very good seat occupancy rates.

E-commerce activities were taken forward pragmatically

throughout the whole group. All of the Kuoni companies now sell

many, or even all of their pro-

ducts over the Internet, though

standards do vary across the

different areas. Kuoni UK’s new

site at www.kuoni.co.uk has

been particularly successful,

generating excellent turnover

since the beginning of 2001.

Customers can use the website

– a first for the industry

anywhere in the world – to put together and book a holiday from

the entire flexible range offered in Kuoni UK’s brochure.

20

“All of the Kuoni

companies now sell

some or all of

their products over

the Internet.”

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G R O U P

Successful activitiesand geographical portfolio

Despite a difficult operating environment, the Kuoni Group can

look back on a year that was successful on the whole and

brought new record results. Within the Strategic Business Unit

Europe, however, the results posted by

the individual country units varied

widely. Group turnover increased

by 17.0% to CHF 4.1 billion (1999:

CHF 3.5 billion), while earnings before

interest, taxes and amortisation of

goodwill (EBITA) grew by 14.3% to

CHF 174.7 million (1999: CHF 152.8

million). Pre-goodwill earnings posted

an increase of 7.9% from CHF 144.0 mil-

lion to CHF 155.5 million. Before deduction

of extraordinary expenses, Group profit was up

slightly on the prior year at CHF 115.1 million (1999:

CHF 113.9 million). Net profit surged by 32.1% versus 1999

results, a year in which the Group faced an extraordinary charge

to cover the merger project with First Choice. Earnings per share

also reached a new high, at CHF 35.97 per registered share B

(1999: CHF 27.23). The Board of Directors will propose to the

General Meeting of Shareholders that the dividend per registered

share B be increased to CHF 12.

The financial statements for the 2000 business year have been

drawn up under the Group structure in place until the end of

December 2000. This structure comprised five Strategic Business

23

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funds. Comparative figures per

registered share B for 1999 have

been adjusted in line with this

new structure.

An analysis of turnover by

business unit gives the follo-

wing results:

• The SBU Switzerland

broke the one-billion-franc bar-

rier for the first time ever, and

posted a considerable 10.1%

increase on the prior year at

CHF 1,003 million (1999:

CHF 911 million). This growth

is even more gratifying gi-

ven that it was achieved purely

through internal efforts.

• The SBU United Kingdom

& North America saw strong

acquisition-driven growth

of 11.6%. Additional growth

of 5.9% worked through

from the currency side, giving

a total increase of 18.8% to

CHF 1,091 million (1999:

CHF 918 million). The ban im-

posed on Concorde flights

led to a contraction in turnover

at US subsidiary Intrav, and

this impacted Kuoni UK's

strong organic growth figures.

• The SBU Europe conti-

nued to top the turnover league

with CHF 1,161 million (1999:

CHF 1,067 million, an increase

25G R O U P

Units, or SBUs: Switzerland, UK & North America, Europe, Busi-

ness Travel and Incoming & Asia. The data pertaining to goodwill

was restated in the financial statements for 1999 in accordance

with a new IAS standard. By implementing International Accoun-

ting Standards (IAS) in 1997, Kuoni adopted a system which in-

volves recognising the goodwill from acquisitions as an asset. As a

result, the goodwill arising from acquisitions dating from 1995

and 1996 had to be retroactively capitalised as an asset and subse-

quently amortised. Previously, this goodwill had been charged to

equity in accordance with the accounting standards in place at the

time. This adjustment generated an increase in goodwill amorti-

sation of CHF 3.4 million in 1999, with a concomitant reduction

of Group profit to CHF 87.1 million. At the same time, some other

minor adjustments were made in respect of classifications in the

income statement.

In June 2000, the par value of shares in Kuoni Travel Holding

Ltd. were reduced in a 10-for-1 quasi share split. The trans-

action consisted of the payment of nine times the par value of the

share, and effectively resulted in a ten times quasi share split.

This brought the Group an inflow of CHF 144 million in new

24

Percentage Share ofGroup Sales 2000

SBU Switzerland: CHF 1,003 million

SBU Incoming & Asia:CHF 674 million

SBU Europe: CHF 1,161 million

SBU United Kingdom & North America: CHF 1,091 million

SBU Europe: CHF – 3.3 million

SBU Business Travel:CHF 19.2 million

SBU Incoming & Asia:CHF 22.4 million

SBU United Kingdom & North America: CHF 106.7 million

Percentage Share ofGroup EBITA 2000 per SBU

SBU Switzerland: CHF 46.9 million

Changes in Group Turnover1996–2000

CHF b

4

3

2

1

096 97 98 99 00

Changes in EBITA and Group Profit1996–2000

CHF m

175

150

125

100

75

50

25

096

EBITA Profit

97 98 99 00

Changes in Group Profit1996–2000per Registered Share B

CHF

40

30

20

10

096 97 98 99 00

SBU Business Travel:CHF 184 million

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of 8.8%). Acquisition-driven growth accounted

for 4.1%, while internal growth amounted to

7.6%. From the currency side, there was a nega-

tive impact of –2.9%.

• At the SBU Business Travel,

there was a strong 9.5% increase in

turnover from CHF 168 million to

CHF 184 million.

• The SBU Incoming & Asia recorded the highest growth

in percentage terms, with a remarkable 49.4% increase to

CHF 674 million (1999: CHF 451 million). Of this increase, no

less than 17.4% can be attributed to organic growth.

In terms of percentage shares of turnover by activity, Incoming

posted a strong increase from 10.2% to 13.4%, the result of ro-

bust organic and acquisition-driven growth in this SBU. Following

the implementation of a new basis for defining turnover in 1999,

which comprises only commissions and service fees from retailing

of business travel, business travel generated 4.5% of total turn-

over, a level almost unchanged from the prior year. Leisure travel

continued to be the main turnover contributor accounting for

82.1% of revenues.

Earnings before interest, taxes and amortisation of good-

will (EBITA) grew by 14.3% from CHF 152.8 million to

CHF 174.7 million. With the exception of Europe, all units im-

proved in the year under review, which helped produce this

strong increase. The primary factors behind the growth in EBITA

were the first-time consolidation of acquisitions (+10.2%)

and the positive currency impact from the US dollar and the British

pound. The disappointing overall development in SBU Europe

meant that the organic EBITA increase for the Group failed

to match expectations. Margins remained at 4.3%, a level that

was nonetheless still higher than the average.

Despite a very difficult market environment worldwide, the

trend in financial income was extremely satisfying. At CHF 43.1

million (1999: CHF 47.4 million), we posted another excellent

result, and this contributed significantly to Group results. Conside-

rable funds were again needed to finance acquisitions in the year

under review. The securities portfolios kept for this purpose were

sold at times when market conditions were favourable, and gains

were realised. The proceeds from these sales were used to finance

acquisitions in Sweden, India and the United States. Non-realised

capital gains on the remaining small securities portfolio were redu-

ced significantly to CHF 14.6 million (1999: CHF 40.6 million).

As a result of its minority shareholdings in Apollo, Stockholm

(45%), and TUI Suisse, Zurich (49%), the Kuoni Group faced

considerable proportional expenses for associates for the first time.

At CHF 15,0 million, these expenses impacted the net financial

result. The figures also include goodwill amortisation resulting

from the acquisition of these companies. The main factor behind

the lower-than-expected result in Scandinavia is that – unlike

the companies in which Kuoni has a majority stake – Apollo failed

to cover the risks resulting from the

US dollar and aviation fuel.

Earnings before taxes and amorti-

sation of goodwill, a figure often used

for the purposes of international com-

parisons, amounted to CHF 202.8 mil-

lion, a new record (1999: CHF 200.2

million). Expressed as a percentage

of turnover, Kuoni, with 4.9%, still

tops the earnings list ahead of its nine major competitors.

Before deduction of extraordinary items, Group profit was up

slightly on the prior year (1999: CHF 113.9 million) at a total of

CHF 115.1 million. It should be noted that one consequence of the

Kuoni Group’s dynamic strategy is a continual increase in the

amount required for the amortisation of goodwill. On top of this,

the tax rate rose again in the year under review as expected, going

up to 30% from 26.9%. This trend is likely to continue over coming

years, albeit at a slower pace: the proportion of tax-privileged finan-

cial income in the holding structure is contracting on an ongoing

27G R O U P26

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On 12 January 2000, Kuoni floated a bond issue on the capital

market for the first time in the Group’s history. The CHF 205 mil-

lion 2000–2005 convertible bond with a coupon of 1% makes it pos-

sible for Kuoni shares to be subscribed at a price of CHF 946.19.

This attractive issue has secured the Group the funds it needs to fi-

nance further acquisition projects at favourable conditions and,

at the same time, allowed the non-issued shares available to be put

to constructive use.

A promising start in 2001

Following the purchase in the year under review of a 45% stake in

Stockholm’s Apollo Resor, one of Scandinavia's growth travel

companies, we acquired the remaining shares in this company on

1 January 2001. This purchase gives us considerable scope to

shape results in the current business year. Apollo will be fully con-

solidated for the first time in the 2001 financial statements.

The establishment of TRX Central Europe was announced in

January of this year, with Kuoni holding 51% of the new com-

pany. This majority shareholding in TRX Central Europe, which

also involves US and UK partners, marks Kuoni’s entry into a

new segment of the travel industry: e-logistics. There are plans to

set up a fulfillment centre in Germany and one in Switzerland

in spring 2001.

In our business, predicting future demand is not easy. Never-

theless, the first indications in the current financial year are en-

couraging. In Switzerland, the early appearance of the most impor-

tant Swiss brochures and the launch of the new direct selling

brand Reisen Netto in the domestic market have had a very positive

impact on sales. In the UK, too, bookings for 2001 have got off

to an excellent start, while our French and Incoming companies are

also above-budget after the first few months of the year. Once

again it appears that, thanks to the broad spectrum of our activities

over a wide range of different regions, we can continue to look to

the future with optimism.

29

basis while the proportion of operating profit is increasing as a re-

sult of acquisitions, some of them in countries with higher rates

of taxation. Given the extraordinary expenses required in connection

with the First Choice merger project in the 1999 business year,

Group profit increased by over 32% to CHF 115.1 million (1999:

CHF 87.1 million). Organic growth accounted for a sizeable 31.8% of

this increase, while positive currency developments generated 4.2%.

Pre-goodwill earnings rose by 7.9% to CHF 155.5 million

(1999: CHF 144.0 million), which increased pre-goodwill earnings

per registered share B to CHF 48.58 (pre-extraordinary expenses

in 1999: CHF 45.01).

At CHF 35.97, earnings per registered share B reached a new

record (1999: CHF 27.23), continuing the unbroken series of

successes since 1995. Against the backdrop of Kuoni’s flexible divi-

dend policy, which envisages a distribution of 30–35% of Group

profit to shareholders each year,

the Board of Directors is pro-

posing to the Annual General

Meeting of Shareholders to

be held on 15 May 2001 that the

dividend per registered share B

be increased to CHF 12 (1999:

CHF 11).

Investment in fixed assets

decreased sharply in the year

under review, from CHF 168.9

million in 1999 to CHF 87.2

million, with the largest amounts

required to cover renovation

work at our head office in Zurich and the purchase of additional

office premises at head office to ensure our continued expansion.

In addition, the Group continued to make significant invest-

ments in the IT area. With a record cash flow of CHF 198.5 million

(1999: CHF 156.5 million; +26.8%), our equity capital is also

being steadily built up from current business activities.

G R O U P28

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S B U S W I T Z E R L A N D

Best performance all along the line

The Strategic Business Unit (SBU) Switzerland set some impres-

sive new records in 2000 and achieved the best result in its

history. Consolidated turnover improved by CHF 92 million, or

+ 10.1%, to a new record figure of CHF 1,003 million (1999:

CHF 911 million), thus moving above the billion-franc mark for

the first time. Operating profit was also significantly improved

for the fifth time in succession. Despite the difficult market envi-

ronment, EBITA climbed to CHF 46.9 million, which represents

a rise of CHF 9.4 million, or 25.1%, on the previous year (CHF 37.5

million). Charter business once again accounted for a substan-

tial portion of the significant qualitative growth. More than any-

thing else, careful planning and a strategy of sensible expansion

proved their worth in a tense competitive environment.

Record results were achieved by both tour operating and retailing.

In tour operating, the launch of a new, flexible price system by

beach holiday brand Helvetic Tours was a complete success. This

innovation further underlines the fact that Kuoni Switzerland is

a market leader in technical matters, too. With over 120 sales out-

lets, retailing has become an indispensable function within the

business unit, ensuring effective sales for the products offered by

all operators and brands. With the exception of Rotunda Tours,

our Group subsidiaries can look back on a successful year.

31

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Kuoni ReisenRetailing: a major success factor

Kuoni Switzerland’s travel agency division increased its adjus-

ted, non-consolidated turnover by CHF 36.9 million to an

outstanding CHF 600.3 million (1999: CHF 563.4 mil-

lion; +6.5%). The share of sales generated by

own-brand products rose once again, and

thanks to rigorous cost management and

professional product control this depart-

ment also improved its operating result.

Internet services were further deve-

loped in a targeted manner, and in sum-

mer 2001 SBU Switzerland branches will

also be taking their place in the electro-

nic world. There is a long tradition of

sales through travel agents in Switzerland,

but the amount of business done over

the Internet is steadily increasing. The Inter-

net turnover curve is trending steeply

upwards, though it is still at a low level.

33S B U S W I T Z E R L A N D

Kuoni ReisenTour operating: still in pole position

Tour operating was able to increase non-consolidated turnover by

CHF 64.8 million, to a new record of CHF 819.9 million (1999:

CHF 755.1 million.; +8.6%). Long-haul destinations in particular,

such as the Caribbean (+19.6%) and the Indian Ocean and Arabia

(+20.1%), improved considerably.

On the earnings side, operating profit recorded proportionally

higher growth than non-consolidated turnover, with gross margins

improving further in both the overseas/city trips sector and the

European beach holiday sector. Helvetic Tours’ innovative new

price system, which facilitates flexible price management according

to supply and demand, made a major contribution to this result.

Thanks to process optimisation, costs in this area fell by 4.2%.

We are also especially pleased about another clear improve-

ment in quality; the complaints rate, which was already very low,

fell by another 3% on the previous year. The Swiss travel industry

awarded Kuoni tour operating four gold Travel Star Awards for

2000: for best beach holiday, best Asia and best city trip operator,

as well as for best ticket shop. In addition, Reader’s Digest readers

chose Kuoni as the Most Reliable Travel Brand of Switzerland.

32

Percentage Share ofnon-consolidated Turnover 2000SBU Switzerland

Kuoni ReisenTour operating: 44 %

SBU SwitzerlandChanges in EBITA

CHF m

50

40

30

20

10

096 97 98 99 00

SBU SwitzerlandChanges in Turnover

CHF m

1000

750

500

250

096 97 98 99 00

Reisebüro Popularis: 6.5 %

Edelweiss Air: 5.7 %

Kuoni ReisenRetailing: 32.2 %

Rotunda Tours: 0.7 %

Privat Safaris: 1.2 %

Manta Reisen: 2.2 %

PRS: 2.8 %

Railtour Suisse: 4.7 %

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Manta Reisen:Diving holiday specialist flying high

Manta Reisen, a specialist in the Maldives and diving holidays,

had a record year. Its non-consolidated turnover went up by 19.4%

to CHF 40.6 million (1999: CHF 34.0 million). Even more pleasing

is the fact that EBITA improved considerably. Manta Reisen plays

a vital strategic role, particularly on account of our important Mal-

dives business. New business areas such as wedding holidays and

India are developing very well and are set to do even better for the

company in future years.

Reisebüro Popularis:Activities streamlined

Over the course of the year

2000, Reisebüro Popularis gave

up its tour operating activi-

ties under the Coop extra

Reisen brand and reposi-

tioned itself as a pure retailing

company; Helvetic Tours’ branch offices agents

are part of this unit. At the same time, the Kuoni

Group acquired all of the shares still held by Coop Switzerland.

The firm’s head office was subsequently moved to Zurich in the

first quarter of 2001.

Despite its withdrawal from tour operating, Reisebüro Popu-

laris was able to increase non-consolidated turnover by 5.5%

to CHF 120.5 million (1999: CHF 114.2 million). EBITA is in the

black despite the one-off restructuring costs associated with

the withdrawal of the Coop extra Reisen brand. Under the Helvetic

Tours brand, the unit has added a further three branches and has

made a very good start to the business year 2001.

35S B U S W I T Z E R L A N D

Edelweiss Air:Joining the elite

2000 was another very eventful year in

the short history of Edelweiss Air. For

the first time, SBU Switzerland’s

passengers were able to travel on

the brand new Airbus A330-200

on long-haul flights, too, and

enjoy Edelweiss Air’s renowned

service. Thanks to the expansion

into long-haul business at the

beginning of the 2000 winter sea-

son, non-consolidated turnover also rose to

a new record level of CHF 105.8 million (1999:

CHF 78.5 million; +34.8%). We are particularly happy that the

Swiss travel industry voted our young and dynamic airline best

charter company, ahead of Balair and Crossair, awarding it a gold

Travel Star Award for 2000.

34

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This qualitative growth was made possible by strict cost manage-

ment and attention to detail. The trend towards short trips is conti-

nuing and Railtour Suisse is ideally equipped for the future.

Rotunda Tours:Falling demand for South Africa

Even Rotunda Tours, the undisputed market leader in terms of both

quality and quantity, could not escape the effects of falling demand

in Southern Africa business. Despite innovative measures such as

its first-ever launch of a brochure in French, non-consolidated turn-

over stuck at CHF 12.6 million. The operating result fell on

account of higher spending on marketing. Not least because of this

added expenditure, Rotunda Tours should benefit more than

most if the market recovers in 2001; the current boom in East Afri-

ca business suggests that there is some justification for this hope.

37S B U S W I T Z E R L A N D

Privat Safaris Reisebüro:Comeback of the year

The long awaited upturn in East African business finally arrived in

2000. As a market leader and acknowledged specialist, Privat

Safaris was able to profit more than most from the Africa boom.

Non-consolidated turnover grew by 15.7% to a satisfying

CHF 22.9 million (1999: CHF 19.8 million). The outlook for the

coming year promises a

further improvement.

Privat Safaris’ strategy of

refusing to compromise on

quality even during its dif-

ficult period has paid off.

PRS:Turnaround accomplished

The PRS travel agencies, which operates in the Zurich region

under the brands LM Reisen, Rewi Reisen and Tevy Reisen, has

staged a turnaround and developed into a solid pillar of the

SBU Switzerland’s business. Following new management appoint-

ments, the team is now stronger and is achieving notable success.

Non-consolidated turnover went up 10.3% to CHF 52.3 million

(1999: CHF 47.4 million). Various branches were renovated du-

ring the year under review, and the new year has begun extremely

well; there is no reason why turnover should not increase further

this year.

Railtour Suisse:Success story continues

For the thirteenth consecutive year, this subsidiary of Kuoni Travel

Holding and the Swiss Federal Railways (SBB), which specialises

in rail travel and short trips, posted a record result. Non-consolida-

ted turnover increased by 12.3% to CHF 87.9 million (1999:

CHF 78.3 million), while EBITA recorded above-average growth.

36

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S B U U N I T E D K I N G D O M & N O R T H A M E R I C A

The success story continues

Following the restructuring and first-time consolidation of Intrav

and Voyages Jules Verne the previous year, the new enlarged

Strategic Business Unit (SBU) United Kingdom & North America

exceeded our own ambitious expectations for the year 2000.

With turnover up from CHF 918 million to CHF 1,091 million (an

18.8% increase, and the first time the billion-franc mark has

ever been reached) and an EBITA of CHF 106.7 million (a 15.7%

improvement on the CHF 92.2 million of 1999), the SBU set

two outstanding new records for the year and laid a solid foun-

dation for a highly promising future.

Kuoni UK:across-the-board success

The core tour operating business of Kuoni UK gained further mar-

ket share in 2000. Yet it did so while still maintaining its high

profit margins which are well in excess of the industry average.

Increased demand is being felt for flexible long-haul holidays;

and Kuoni UK’s concept of “tailor-made holidays at package-tour

prices” is appealing to an ever-growing number of clients who

are prepared to pay a little bit extra for a superior service and

greater flexibility.

The investments which our SBU has made in recent years in its

people, the call centre, its information technology and its website

development now enable us to provide better service more efficient-

ly and create a genuine product and service differentiation between

Kuoni and its competitors. In fact, Kuoni UK is now Europe’s

most successful specialist tour operator, and uses predominantly

scheduled rather than charter flights.

39

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January 2001 saw the launch of the SBU’s pioneering new

website, www.kuoni.co.uk. The site features detailed information

on thousands of holidays to over 50 countries. The main feature

of the new website is an interactive booking system that enables

direct clients and travel agents to take advantage of the total flexi-

bility that makes the Kuoni UK product so unique: day of de-

parture, duration of stay, airline, hotel room type and meal plan

can all be changed at the click of a button to suit individual

preferences and needs. The site got off to an excellent start: it has

already taken bookings from all over the world including

the Falkland Islands, the USA, Brazil and Portugal, and seems to

be tapping into a new potential market of British residents

abroad looking to book their holiday from the UK on the Kuoni

website.

On the product side, the launch of our World Class brochure

offering luxury holidays throughout the world was a similar

success. Indeed, we expect this new product line to make a positive

profit contribution in just its second year. And to crown an

excellent 2000, Kuoni UK won – for the 19th consecutive year! –

the Golden Globe award for “Britain’s best long-haul tour opera-

tor” as voted by the country’s travel agents.

IBUs:Different products, same back office

The restructuring of Voyages Jules Verne (VJV), our largest Inde-

pendent Business Unit or IBU, has now been completed. While

the company distributes its holidays as an autonomous direct-sales

organisation via its own and equally new www.vjv.com website,

via customer mailings and through newspaper advertising, VJV also

utilises the buying power and back-office support of the Kuoni

UK group. The Airwaves brand has been dropped, and most of the

products previously offered under the Airwaves name have been

included in the Kuoni

brochures. The Travel

Collection remains a sepa-

rate direct sell brand of

Kuoni, but to maximise the

synergies, the sales and

operations have been inte-

grated within the Kuoni

Dorking tour operation.

The Far East Travel

Centre moved into its new offices, appropriately located in Lon-

don’s Chinatown, from where it provides both Chinese and British

clients with special air fares and individually tailored holidays to

the Far East. All the other IBUs (Student Travel, Trade Fairs, Sport

Abroad, Incentives and Specialist Travel) are now located under

one roof in a building adjacent to Kuoni UK’s Dorking head office.

Like VJV, these IBUs also enjoy the independence they are given

to create and market their own products, yet can still benefit from

Kuoni UK’s overall infrastructure and back-office support.

USA:Intrav does well despite the Concorde setback

For Intrav and Clipper Cruise Line, our US subsidiaries, 2000 was

the first full business year under Kuoni ownership. After an event-

ful but excellent first six months, Intrav suffered a material setback

41S B U U N I T E D K I N G D O M & N O R T H A M E R I C A40

SBU United Kingdom & North AmericaChanges in EBITA

CHF m

100

80

60

40

20

096 97 98 99 00

SBU United Kingdom & North AmericaChanges in Turnover

CHF m

1000

800

600

400

200

096 97 98 99 00

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programmes for both scheduled and private charter flights as soon

as possible.

The four small cruise ships (carrying 90 to 128 passengers) will

continue to operate on exclusive itineraries from Alaska to the

Antarctic and from US coastal cruises to the Grenadines, visiting

away-from-it-all places which bigger vessels cannot reach.

43S B U U N I T E D K I N G D O M & N O R T H A M E R I C A

when Concorde operations were suspended following the July crash

in Paris of an Air France aircraft. Intrav is the market leader in

private jet charters; and Concorde was the flagship in the com-

pany’s programme, offering prestigious 17-day “around-the-world

holidays” by supersonic jet for around USD 50,000 per person.

With Concorde presenting such a unique and irreplaceable attrac-

tion, the loss of this business could not be made up for in the

second half of the year.

The USD 12 million in turnover lost through the cancelled

Concorde flights and the corresponding decline in gross profit were

reflected in the SBU’s results for the year. Nevertheless, Intrav’s

management produced some excellent results from the small-ship

operations of Clipper Cruise Line and the conventional private

jet programmes and, despite the loss of the Concorde business, the

US subsidiaries made a very positive contribution to the SBU’s

overall EBITA result.

Intrav also commenced planning for the launch of “Intrav à la

carte” – an adaptation for the US market of the Kuoni UK con-

cept for “tailor-made holidays at package-tour prices”. The Intrav

à la carte Europe and Asia brochures are now available, and

the corresponding computer systems were due to be set up during

the first quarter of 2001. We expect to see some limited sales of

this new product during the current year, followed by a substantial

increase in business in 2002/03.

A further Intrav product

innovation is the new and

exclusive round-the-world flight

in a specially reconfigured

luxury Boeing 747 Jumbo Jet in

which the usual 400 Economy

Class seats have been replaced

with just 100 First Class seats and

two bars. Should Concorde

return to service later in 2001,

Intrav plans to launch new

42

Time to pass on the baton

It was 35 years ago that Jack Bolli (who was then Kuoni Group

CEO and was my mentor for many years) and I started our

tour operation in the UK. We have come a long way since then;

and at the end of 2001 I shall hand over full operational

responsibility for all of Kuoni’s activities in the UK to my suc-

cessor, Sue Biggs. During her 19 years with the company, Sue has already made

a great contribution to the success of Kuoni UK; and our well-known business philo-

sophy of ”Quality before quantity and profit before market share”, which we have

pursued for many years, will be in safe and experienced hands.

From January 2002 I shall assume, on a part-time basis, the chairmanship of Kuoni

UK, of Intrav and Clipper Cruise Line in the USA, and of our hotels in the Carib-

bean. So I shall remain very much in touch with the Kuoni Group and its future de-

velopment.

Three years ago, I said – half seriously, half jokingly – that before I reached the age

of 60 and handed over my executive responsibilities to my successor, I expected our

SBU to achieve CHF 1 billion in turnover and an EBITA of CHF 100 million. Well, those

results came a year early! It now only remains for me to thank all my management

and staff for their great support and for the superb results they have achieved.

Peter Diethelm

Executive Vice-President Specialists United Kingdom & North America

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S B U E U R O P E

A picture of light and shadow

In the year under review, the national companies within

the Strategic Business Unit (SBU) Europe performed with widely

varying degrees of success. But with turnover amounting to

CHF 1,161 million (1999: CHF 1,067 million; +8.8%), SBU Europe

continues to remain the unit with the highest turnover. On

the other hand, results were disappointing with EBITA showing a

loss of CHF –3.3 million (1999: 17.1 million). In the year ended,

Kuoni France and Kuoni Spain performed very well. The subsidia-

ries in Denmark, The Netherlands, Austria and Italy had to con-

tend with difficult market conditions and a less than satisfactory

profit situation.

Austria:Kuoni as retailing brand

As part of operations to streamline the portfolio, Kuoni withdrew

from tour operations carried in Austria under its own name at

the end of the 2000/2001 winter season and closed Kuoni Reisen

Veranstaltungs AG. However, with N-U-R Neckermann Reisen AG,

we still succeed in having a presence in the tour operating busi-

ness. In future, the Kuoni brand will concentrate its activities in

Austria on selling leisure travel, which has performed highly

satisfactorily.

45

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Tour operating: modest performance

N-U-R Neckermann, in which Kuoni holds a majority interest of

51%, increased turnover from CHF 294 million to CHF 299 mil-

lion (+1.7%) despite volatile market conditions; however, earnings

failed to meet the previous year’s positive performance. The level

of turnover recorded by N-U-R Neckermann Reisen AG – number

two on the Austrian market – was not quite in line with the

number of travellers, mainly because of an increase in products

such as city holidays or holidays where guests make their own

travel arrangements, all being considerably cheaper on average than

air travel.

Of the new markets bordering Austria in which N-U-R

Neckermann operates, Hungary continued to perform satisfacto-

rily, at the same time starting to expand its sales channels. At

the moment, the company has 21 of its own branch offices in Hun-

gary. After a rocky start in the previous year, activities in Slova-

kia and Slovenia likewise showed positive trends in the year under

review.

Asia specialist, Allround Travel International (ATI), saw a

9.1% drop in turnover in the year 2000 from CHF 8.8 million in

1999 down to CHF 8.0 million in 2000. This was due to the weak

euro and the associated increases in flight and hotel prices. The

competitive nature of market conditions to a large extent prevented

any price increases. Thanks to strict cost management, however,

it was still possible to achieve good results.

Retailing: continued expansion

Our retailing organisation, Reisebüro Kuoni Ges.m.b.H., once

again can look back on a good financial year. Thanks to a targeted

and rigorous product policy as well as continued productivity

gains, the organisation saw an increase in turnover and earnings

despite a continued fall in commissions. Growth in turnover of

3.7% to CHF 14.2 million (1999: CHF 13.7 million) was generated

solely by organic means.

Including Okay Reisen, which was acquired in November

2000, Kuoni now has its own distribution network comprising

41 sales outlets, plus a further 28 outlets operated by franchisees

(Kuoni Travel Partners).

47S B U E U R O P E 46

SBU EuropeChanges in Turnover

CHF m

1000

750

500

250

096 97 98 99 00

Percentage Share of Turnover 2000SBU Europe

Austria: 32.0%

Spain: 3.0%

Netherlands: 5.1%

Denmark: 16.5%

Italy: 21.2%

France: 22.2%

SBU EuropeChanges in EBITA

CHF m

15

10

5

0

–596 97 98 99 00

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France:Above-average growth

In a market characterised by an ongoing concentration process,

Kuoni France once again enjoyed considerable success in the year

2000. Whereas the market grew by around 8%, our French sub-

sidiary succeeded in increasing turnover by 15.2% to CHF 258 mil-

lion (1999: CHF 224 million).

And once again, Kuoni

France also recorded above-aver-

age improved earnings. All di-

visions had a role to play in con-

tributing to this satisfactory

result. Traditional tour operating

recorded satisfactory growth,

as did the specialist business of

Scanditours, group sales and

alternative sales channels via

supermarkets. The traditional

sales network recovered from its previous year’s downturn and like-

wise contributed to the excellent results. Owing to the new

Employment Law stipulating a 35-hour week, Kuoni France saw a

considerable increase in its level of staffing.

Italy:Expansion of product range

Despite a rather modest trend on the Italian market, turnover of

our Italian joint venture, Kuoni Gastaldi grew in the year 2000

by 3.8% to CHF 246 million (1999: CHF 237 million).The rise in

kerosene costs and the strong US dollar had a negative effect on

sales particularly in the low season and on earnings.

During the year under review, Kuoni Gastaldi continued to

expand its range of chartered products and included some

destinations popular on the Italian market such as the Cape Verdi

islands. The new product “resorts” stands for holiday villages

and all-inclusive clubs especially developed by Kuoni Gastaldi and

49S B U E U R O P E

Restplatzbörse, specialising in the sale of last-minute package

holidays and flight tickets, continued to expand rapidly with a

53% growth in turnover to CHF 5.2 million (1999: CHF 3.4 mil-

lion), thus strengthening its position as the leading last-minute

specialist.

Denmark:Ongoing competitive pressure

As from 1 January 2000, the Danish scheduled flight specialist

Dane Tours as well as the Kisbye Rejser travel agencies with

four branch offices in the east of Denmark joined the Kuoni Group,

whose activities in Denmark in the form of Alletiders Rejser S/A

had previously concentrated on the chartered flight market.

In the year under review, the market has been characterised by

overcapacities and price pressure. Continued competitive pres-

sure had an effect on the result of Alletiders Rejser in the first six

months. The 24.8% growth in turnover from CHF 153 million

to CHF 191 million is mainly attributable to the acquisition of

Dane Tours and Kisbye Rejser.

In the year 2000, Alletiders Rejser was chosen as the best

Danish charter tour operator and Dane Tours as the best scheduled

flight specialist. Furthermore, the tour operator won an award

for having the most comprehen-

sive Thailand programme

in Denmark.

48

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The Netherlands:Reorganisation completed

The year under review saw a vir-

tual end to the restructuring

measures undertaken in 1999

to our Dutch subsidiary

Special Traffic. Despite a delay to

technical reorganisation, turn-

over could be maintained at the level of

the previous year with CHF 59 million.

The new electronic direct sales channel, Net-

vacations, went live in April 2000 and by the

year-end had achieved sales of CHF 0.6 million.

With the standardisation of products and working processes,

both productivity and availability for sale were hugely improved.

Alongside optimising processes throughout the entire organi-

sation, management also carried out a review of major suppliers

and where necessary, entered into co-operative agreements with

new partners. Special Traffic won the following awards in the year

2000: best specialised tour operator, best foreign travel tour

operator, best tour operator for North America and for the first

time, best tour operator for Asia.

51S B U E U R O P E

tailored to the needs of its customers. This market segment –

club holidays with individual customer care and organisation – has

shown continuous growth on the Italian market for over five years.

With the continuous growth of chartered holidays – also

available via the Internet since Summer 2000 – as well as the re-

organisation of the marketing and sales structure and the opening

up of new, alternative sales channels such as banks, supermarkets

and insurance companies, Kuoni Gastaldi is continuing to ex-

pand its position on the Italian market. The company already leads

the way in the area of à-la-carte holidays with scheduled flights,

once again establishing itself in the year 2000 as the market leader

for the two most popular destinations – Australia and the USA.

Spain:Successful turnaround

Thanks to restructuring measures introduced in 1998, the year

under review saw a turnaround bringing Kuoni Spain once again

into the black. With rigorous marketing, product innovations,

flexible service and a highly motivated team, turnover was

increased by more than 17% (2000: CHF 35.5 million; 1999:

CHF 30.3 million). Market share increased in all areas and destina-

tions such as Thailand, Indonesia, Indochina, the islands in the

Indian Ocean and some destinations in South America, recorded a

plus of more than 50%.

Despite the strong dollar, the

Spanish subsidiary even saw

growth of almost 10% compa-

red to the previous year for

the most popular destination –

the USA. And a well-known

local newspaper named Kuoni

Spain as the best tour operator

in the year 2000.

50

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S B U B U S I N E S S T R A V E L

A changeover bearing fruit

The Strategic Business Unit (SBU) Business Travel underwent a

worldwide reorganisation during the year under review. The new

organisation reflects the international focus of the SBU’s busi-

ness operations, and with its streamlined structures, it also takes

account of the ongoing squeeze on margins in this segment.

As airlines continue to reduce the commissions they pay, the SBU

is having to reposition itself as a customer-financed service

provider. In Germany and Switzerland in particular, the change-

over to a new payment model is already well advanced and is

beginning to bear fruit.

The Business Travel unit achieved

a pleasing improvement in

results for the year 2000. The

definition of turnover was

changed in the previous year to

match European practices, and as

a result the increase in turnover may

not appear especially significant at first

sight. This is deceptive: in an environment

characterised by profound change, business travel is developing

along a solid growth trajectory. With total invoiced sales of appro-

ximately CHF 2 billion, the unit is left with turnover – equiva-

lent to gross profit – of CHF 184 million (1999: CHF 168 million)

or an increase of 9.5%. The EBITA improved by a huge 23.9%

from CHF 15.5 million to CHF 19.2 million, which exceeded our

expectations.

53

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Austria:Reduction in commissions absorbed

Business travel in Austria developed very pleasing. The reduction

in commissions paid by airlines from nine to seven percent,

introduced in January 2000, could be almost completely absorbed.

Nevertheless, turnover was slightly down on the previous year:

it fell by 7.0% to approximately CHF 6.6 million (1999:

CHF 7.1 million). Owing to certain alterations the

conference travel specialist Commerz Reisen,

which joined the BTI organisation in 2000,

was not able to fill the seat allocations it had

purchased to the extent expected.

Hungary:Holding steady

As expected, the Hungarian company Kuoni

Utazási Iroda maintained its results at the previous

year’s level. Turnover remained at CHF 0.5 million.

55S B U B U S I N E S S T R A V E L

Germany:More and more successful

The reorganisation of 1999, and the subsequent clearer focus

on activities, is now bearing fruit: turnover at the German company

Euro Lloyd Reisebüro GmbH &

Co. KG was 9.7% better at

CHF 101.7 million (1999: CHF

92.7 million). The main pillar

of this success with almost 80%

of overall turnover was the

core activity of business travel,

with the brand BTI Euro Lloyd.

The tourism and group tours

division also developed very satis-

factorily. In May 2000, sports

travel activities were organised into their own separate division,

and the airport offices were also brought under a single manage-

ment structure within a new division. The German unit has thus

consistently pursued the concentration on activities: each area is to

establish its position in the market largely autonomously, a stra-

tegy that is also reflected in the brand policy.

Switzerland:Undisputed number one

For years now, BTI Kuoni Switzerland has been the leader by

quite some distance in the Swiss business travel market. The com-

pany has not only been able to maintain this position but has

increased its lead still further: its 11.7% improvement on the pre-

vious year is far higher than the market average. Turnover went

up to CHF 75.4 million (1999: CHF 67.5 million).

With retrospective effect from January 2000, Kuoni’s incentive

and special travel department was transferred in May to the BTI

organisation, where it, together with the conference travel depart-

ment, will complement the range offered by BTI Event Solutions

perfectly.

54

SBU Business TravelChanges in EBITA

CHF m

20

15

10

5

096 97 98 99 00

SBU Business TravelChanges in Turnover

CHF m

200

150

100

50

096 97 98 99 00

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S B U I N C O M I N G & A S I A

Impressive expansion

In 2000, the SBU Incoming & Asia made a quantum leap.

Together with the solid organic development of the other units,

the new subsidiaries T PRO in the United States and SITA World

Travel in India have contributed to the SBU’s impressive ex-

pansion. Total turnover increased by 49.4% from CHF 451 million

to CHF 674 million. The CHF 16.9 million improvement in EBITA

to CHF 22.4 million (+ 307%) was even more remarkable.

Incoming Services Europe:Strong growth

Thanks to the diversification of our core Incoming Services Europe

business across different markets, the unit achieved very satisfac-

tory growth during the year under review. Turnover rose 19.5% to

CHF 393 million (1999: CHF 329 million). In addition to Japan,

which is traditionally the most important market for holidays

to Europe, the US market was a major contributor to the positive

result; this was primarily due to the famous Oberammergau

Passion Plays, which take place every ten years and are very

popular among Americans.

Despite the stagnation of the market and

more intense competition, our organisation

in Japan achieved above-average results. Far

Eastern source markets are recovering steadily.

57

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USA:Market entrance as number three

T PRO is also active in incoming business and has been a subsi-

diary of the Kuoni Group since July 2000; it is the third largest

operator in the US market and has lived up to our expectations in

full. By acquiring T PRO, the group has established a foothold

in the rapidly growing American incoming market. Half-year turn-

over surpassed the CHF 100 million mark, which suggests that

T PRO will make a major contribution to the SBU’s results in 2001.

Hong Kong and Singapore:Excellent recovery

The economic situation and,

therefore, consumer sentiment

have greatly improved – especial-

ly in Hong Kong. Both joint

venture companies, P&O Travel

Hong Kong and P&O Travel

Singapore, have scored successes,

especially in business travel, and have produced good overall results.

Turnover rose from CHF 50.8 million to CHF 62.2 million

(+22.4%).

India:Successful expansion

The purchase of SITA World Travel has increased the size of Kuoni

India almost fivefold. The merged company’s billed gross turn-

over makes Kuoni the market leader on the Indian subcontinent.

Local management has done an excellent job integrating the new

firm, and the results achieved this year are better than expected.

Turnover, which includes SITA turnover from the second quarter

of the year under review, came to CHF 81.5 million (1999:

CHF 40.4 million; +102%).

59S B U I N C O M I N G & A S I A

Greece:Good results

Both of our Greek subsidiaries, Hellenic Tours

and Hellenic Islands Services, which are also engaged

in incoming business, once again achieved an above-

average result. Turnover went up 14.3%

to CHF 29.6 million (1999: CHF 25.9 million).

The company established itself as one of

the leading incoming operators, not only on

the mainland but also on the Greek Islands.

Kenya:Healthy recovery

Our East African subsidiary Private Safaris (East Africa) Ltd.,

which runs an incoming operation, is enjoying a marked recovery

and achieved a very positive result in 2000. Turnover increased

32% to CHF 6.6 million (1999: CHF 5.0 million).

With Kenya re-establishing itself as an attractive destination,

we have high hopes for the future of this company.

58

SBU Incoming & AsiaChanges in Turnover

CHF m

800

600

400

200

096 97 98 99 00

SBU Incoming & AsiaChanges in EBITA

CHF m

20

15

10

5

096 97 98 99 00

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I N F O R M A T I O N T E C H N O L O G Y

Fast and solutions-oriented

Following a millennium change-over that passed off without a

hitch, in the year under review the Group unit Information

Technology (IT) pressed ahead with its main themes of standard-

isation and consolidation. Work continued on the Kuoni

Group's e-commerce projects, using a strategic approach which

incorporated a calculated degree of risk, while we took care not

to jump on the “dot.com" bandwagon, which has since turned

out to be something of a short-lived phenomenon.

It was not only the information technology sector that awaited last

year’s millennium changeover with a certain degree of apprehen-

sion; however, the various doom scenarios prophesised failed to

materialise. Thanks to careful planning, the millennium changeover

passed off without a hitch the world over. For the Kuoni Group,

too, the year 2000 started without any problems.

New ground-rules in e-commerce

Without a doubt, the key word in the year

under review – and not only for new-

economy companies – was

“dot.com”. Many companies

caught “dot.com fever”

and pumped millions into

Internet projects. As reports

of various dot.com outfits

going bust and running

into difficulties grew

over the last few months

of the year, however,

several companies began

61

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Grouping together of IT competencies

In the year under review, the centralised and decentralised IT units

in the Kuoni Group intensified the level of co-operation between

them to ensure that maximum use was made of the synergies avail-

able. Today’s competitive environment is shaped by globalisation,

rapid technological developments, severe price pressures and short

time-to-market periods. Against this backdrop, grouping together

IT competencies at Group level is crucial if we are to continue to be

able to react quickly and in a solutions-oriented manner.

The dedication of the entire unit was vital in helping us

achieve our objectives in the year under review and allowing us to

increase the level of client satisfaction even further.

63I N F O R M A T I O N T E C H N O L O G Y

to question their ambitious projects,

in some cases even opting for major

re-dimensioning projects.

Kuoni’s strategy was in sharp con-

trast to the approach adopted by most companies

– after careful analysis and the incorporation of a cal-

culated degree of risk, we launched various realistic e-commerce

projects primarily geared to country level, in light of the still strong

local dimension of the travel business. After an analysis conducted

by one of our project teams, we decided not to pursue the idea

of building up a global travel portal. The subsidiaries in the Group

continued to develop their Internet sites with a view to being able

to book the entire product online, and strengthened their leading

positions in this area in their respective markets. By way of an

example, since the beginning of the

year 2001 it has been possible to

book virtually all Kuoni UK’s com-

plex brochure offerings via the

Internet.

Standardisation reducing costs

Efforts aimed at increasing the

standardisation and consolidation

of the Group’s IT operations con-

tinued during the year under

review. The standards established

reduced the time and effort ab-

sorbed by support activities and,

as a result, brought down costs.

In a further bid to reduce the time and costs required for develop-

ment and training, we migrated various applications to open

systems. In an open system, various products from different IT

sources can run together thanks to a defined standard. This

reduces the level of complexity involved, shortens the development

phase and enhances quality for users and clients.

62

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T H E E U R O P E A N T R A V E L M A R K E T

European top ten continue to grow

The European travel market remains in flux. The merger merry-

go-round continued throughout 2000, with the media showing

particular interest in the competitive battles between

the vertically-integrated travel groups in the British and

the German markets.

Europe’s biggest travel corporations con-

tinue to expand. Not only did the travel

sector post stronger growth for 2000 than the

economy as a whole; results for the year were

further buoyed by substantial increases in sales,

themselves at least partially the product of several

major takeovers, especially by the continent’s top two of Preussag

and C&N. The prime reasons for these large-scale expansion

policies can be found in a desire among these vertically-integrated

companies to secure optimum occupancy for their high-cost ca-

pital assets such as aircraft and hotels.

The European top two: Condor & Neckermann (C&N)

underlined its European ambitions by acquiring Havas Voyages of

France (with 380 travel agencies and 1.6 million guests) and

following this with a bid for Thomson Travel. However, C&N was

outbid here by Preussag (TUI Group), Europe’s overall market

leader, which now owns Thomson Travel (including Britannia Air-

ways, the Lunn Poly travel agency chain and Fritidresor

in Scandinavia with total sales of CHF 6 billion

a year). In the wake of the acquisition,

Preussag shed its share in UK-based Thomas

Cook, acquired the previous year, at the in-

sistence of the competition authorities.

65

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The UK: In addition to

Thomson Travel and Thomas

Cook, both now in German

hands, the UK market has two

other members of Europe’s

top ten in Airtours and First

Choice. Following a flurry

of acquisition activity in the pre-

vious year, 2000 proved a

quieter affair for market leader

Airtours as it concentrated on

stemming its own declining pro-

fits. First Choice is now also

active in the German market fol-

lowing its acquisition of Nazar,

a tour operator specialising in

Turkey and Egypt.

Globally active: The Kuoni

Group also continued to grow, with selected acquisitions in

certain key markets. Having increased its holding in Swedish tour

operator Apollo Resor AB from 45 to 100 per cent and acquired

tour operator Dane Tours and the Kisbye Rejser travel agency chain

in Denmark, Kuoni is now number three in the Scandinavian

market after SLG (Airtours) and Fritidresor (Preussag). In contrast

to the other major European operators, Kuoni also enhanced

its position in markets outside Europe such as the USA, where it

acquired incoming operator T PRO, and India, where, with the

purchase of SITA World Travel, it is now market leader in all busi-

ness areas (Incoming, Outgoing and Business travel).

67T H E E U R O P E A N T R A V E L M A R K E T

C&N then took the opportunity to acquire Thomas Cook, se-

cure a foothold in the UK and become Europe’s second-biggest tour

operator.

C&N now has 28,000 employees, 70 aircraft, 3,800 travel

agencies, 30 tour operator brands, 53,000 hotel beds and 15 mil-

lion customers a year. Preussag, originally a steel company, now aims

to generate some 80 per cent of its revenue from tourism, and will

have 66,000 staff, 76 aircraft, 3,200 travel agencies, 63 tour opera-

tor brands, 96,000 hotel beds and 17.4 million customers a year.

Germany: In Germany, which is home to Europe’s top two

travel groups, the market is led by TUI Group (28%) followed

jointly by Rewe and C&N (with 22% each). Alongside DER and

ITS, the Rewe trading group now includes LTT, the former tourism

division of the LTU group, which it recently acquired from the

SAirGroup. The leading three are followed – at some distance – by

FTI, a subsidiary of the UK’s Airtours, which has been displaced

from number two to number

three in the pan-European

rankings by the rise of C&N.

France: While one half of

all German vacationers’ holi-

days are booked as package

tours, only 30 per cent of

French travellers take their

vacation in this form. Preussag

responded to C&N’s venture

into the French market

through its new Havas holding with its own acquisition (initially

of 13%, though this should be gradually increased to 34.4%)

of French market leader Nouvelles Frontières, which operates 22

hotels and 236 travel agencies and has 2.4 million customers.

Still independent of any major travel group is Club Méditerranée:

the company, which is focusing increasingly on the leisure sector,

saw a 28-per-cent increase in its turnover for the year.

66

0 5 10 15 20

Preussag (D)21 b

C & N (D)13 b

Airtours (UK)11 b

Rewe (D)5.3 b

First Choice (UK)4.7 b

Club Mediterra-née (F) 2.9 b

Kuoni (CH)4.1 b

Hotelplan (CH)2.2 b

Alltours (D) *1.3 b

Alpitour (I) *1.1 b

in CHF b

2000 turnover in CHF of the top ten European travel companies:

(new investments in equity holdings included)

*estimation

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USD 13 billion of business last

year, a figure which is predicted to

grow to USD 20 billion for 2001.

At the same time, however,

questions are beginning to be

asked about just how steep this

growth curve might be. The pun-

dits have also detected a sizable

rise in the numbers of Americans

who have turned their back on the Web, which rose from 10 million

to 28 million between 1997 and 1999.

It is a trend that is likely to show sizable variations from coun-

try to country. In Scandinavia, for example, the relative rarity of

travel agencies has tended to encourage greater use of the Internet

than elsewhere.

In the UK, meanwhile, and now also in Germany, interactive

television is showing increasing signs of emerging as a new tra-

vel retail channel. TV Travel Shop (TVTS), in whose British parent

company Kuoni holds a 12.5-per-cent equity stake, generated

over CHF 300 million in turnover for 2000. TVTS is already a key

sales channel for the UK’s major tour operators, and accounts

for some five per cent of their total travel turnover.

The new medium of the Internet has also attracted providers

with no previous tourist business experience. With a few excep-

tions, most of these have already disappeared again, the victims of

last year’s New Economy downturn. As events have shown,

the traditional travel and tourism companies, being able to de-

termine the content of their own products, still hold certain

trumps for their online activities. At the same time, current trends

are underlining the fact that, even in the age of the World Wide

Web, the travel business is still a strongly localised affair: in the

package holiday sector in particular, it is those operators who

are active in the local market who enjoy the greatest confidence

among Internet users.

69E - C O M M E R C E

Global net, local business

Electronic distribution is nothing new to the travel trade.

The industry has long been comprehensively networked between

airlines, tour operators and travel agencies in the business-

to-business sector. But with the growing use of the Internet by

consumers, whether it’s to prepare their trip or make their

bookings online, the role of e-commerce has grown considerably

over the last few years. Thanks to its early experience in the

field and its existing electronic infrastructure, the tourist sector

is well placed to exploit the new business channels.

Hardly any sector of industry has such an Internet-friendly product

as the travel and tourist trade. The only physical logistics involved

are the mailing of the various travel documents; and ticketless tra-

vel should simplify both this and online reservations soon. For the

consumer, it’s not just for bookings that the Internet holds such

potential. In planning their trips, too – comparing offers, checking

availability, finding out about destinations – the World Wide Web

offers a vast range of possibilities. Yet despite a steady increase

in Internet user numbers, the personal discussion with the travel

agent still remains a service that many customers desire.

Projections vary on how

much leisure and business travel

is likely to be arranged via

the Internet in future. For Eu-

rope market research suggests

that the volume handled online

will double from its 2000 figure

of USD 3 billion to USD 6 bil-

lion. The US online travel

market accounted for almost

68

Kuoni on the Internet in 2000

Turnover (CHF million) Hits (million)

• Group 97.8 33.5

• Scandinavia 72.7 5

• Switzerland 9.4 9.5

• Austria 6.8 14.8

• The UK 5.9 0.5

• Italy 2.6 0.2

• France 0.5 3

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C O R P O R A T E G O V E R N A N C E

A tool for transparency

With processes accelerating all the time and changes a constant

concern, managers today are under permanent pressure to

analyse situations and take the decisions required. The principles

of Corporate Governance provide a sound and solid framework

in which to fulfil these requirements.

Corporate Governance structures the forces and influences at work

at the head of an organisation, and offers a set of rules for ad-

dressing the interests of the company’s stakeholder groups. To help

strengthen its Corporate Governance and the principles it provides,

the Kuoni Board of Direc-

tors created two new

bodies – the Remunera-

tion Committee and the

Audit Committee – in

the course of the year.

To ensure their

autonomy, each of the

new bodies is composed

of non-executive Board

members. Among other

activities, the Remune-

ration Committee has

already reviewed the

salaries of the Group’s

top executives, in con-

sultation with inter-

national specialists. The Audit Committee, which ensures that the

company’s financial principles are properly observed, has drawn up

a charter for its activities, in association with the internal and

external auditors.

71

“Corporate Governance

provides an international

benchmark for our busi-

ness activities; as those

continue to grow on a

global stage, the impor-

tance of Corporate Gover-

nance is increasing, too.”

Daniel Affolter,Chairman of the Board of Directors

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• controlling and treasury functions are continually optimised to

ensure high efficiency

• the total emoluments of the Executive Board and the Board of

Directors are disclosed

• employees are offered continuous training and education

• responsibility towards society and the environment

Being active in the travel

and tourism sector poses a

particular challenge. Not only

must Kuoni’s Corporate Gover-

nance embrace traditional

stakeholders such as em-

ployees, customers and

shareholders; it must also

extend to its service providers

and other parties at its destinati-

ons around the world. Thus, for Kuoni,

Corporate Governance is not just a matter

of organisational structures, corporate bodies

and definitions of duties and obligations. Kuoni sees Corporate

Governance as an attitude, to be adopted and experienced

every day; an attitude through which it pays due and full regard

to all its stakeholders, both through and beyond its immediate

business activities.

73C O R P O R A T E G O V E R N A N C E

Further examples of Kuoni’s Corporate Governance include:

• the majority of the Board of Directors is composed of indepen-

dent individuals

• appointing separate persons as Chairman of the Board (for strate-

gic management) and CEO (for operational management)

• providing maximum accounting transparency by compiling the

consolidated financial state-

ments in accordance with

the International Accounting

Standards (IAS)

• a professional risk manage-

ment is in place to deal with

the risks to which the com-

pany and its stakeholders

are exposed

• Kuoni attaches great value

to competent and proactive

communication with

stakeholders in and outside

the company

• Group strategy is subjected to regular review

• the planning and budgeting systems, with their short-term,

medium-term and long-term annual budgets, are subject to the

Board’s approval

72

“Corporate Gover-

nance offers a set of

rules for addressing

the interests of

the company’s

stakeholder groups."

Daniel Affolter,Chairman of the Board of Directors

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B U S I N E S S A C T I V I T I E S

Three strong pillars

From classic beach holidays via safaris and cruises to carefully

tailored group, business and incentive travel, the range of

the Kuoni Group’s products is as vast as it is varied. Those pro-

ducts (and their production) broadly fall under three “pillars” of

activity – Leisure Travel, Business Travel and Incoming. Of these,

Leisure Travel (which includes Tour Operating and Retailing)

is by far the biggest, accounting for 82.1% of total group turn-

over. Effective travel budget management is a key specialisation

of our Business Travel unit, while Incoming is primarily con-

cerned with organising inbound travel arrangements for tour

operators abroad.

Leisure Travel

Devising, organising and sel-

ling holidays are the core

competencies of our Leisure

Travel sector. First, Tour

operating selects the most

attractive destinations, seeks

out knowledgeable local agents

and works with them to conclude agreements with local hotels,

transport companies and other service providers. It also buys-in the

quotas it needs on charter air services, and arranges local transfers

and excursions.

At bigger destinations, Kuoni has its own guide organisation.

And in the mid-to-high-price market, we distribute our products

under the Kuoni name – a brand that enjoys an excellent image as a

quality service provider, not only in its Swiss home market but

also in countries such as the UK and France. Further brands are

used to appeal to additional markets and customer groups.

75

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Incoming

Our Incoming specialists organise group and individual land arrange-

ments in Europe, East Africa, India and the United States on be-

half of international tour operators. From snowmobile safaris in

Lapland to the culinary delicacies of

Ancient Rome and helicopter flights

over France’s Loire Valley, each Inco-

ming product is carefully crafted to

each client’s wishes and needs.

While the unit’s Greek and

Kenyan subsidiaries focus on custo-

mers from Europe, the 526 staff at

Incoming Services Europe devote most

of their energies to visitors from

the USA, Japan, India and other Asian

nations. Incoming Services Europe

also runs a network of 13 Destination

Management Companies in Europe,

whose clients also include travel agen-

cies in South America, Eastern Europe

and the Near East.

Alongside the “classic” tours, special-interest and incentive

tours, seminars, conferences and study trips are all in great

demand. A Japanese group, for instance, may wish to see how

Swiss cheese is produced, or how the Austrians make their

apple strudel. But despite the clichés, the cosiness of a chalet, the

splendour of the glaciers and a train ride up to the Jungfraujoch

remain the high points of most visitors’ European trips – the last of

these in the truest sense of the term!

77B U S I N E S S A C T I V I T I E S

Responsibility for ensuring that the travel packages assembled

are sold as effectively as possible lies with Retailing. Some 123 sales

outlets perform this task in Switzerland. A further 41 outlets are

provided in Austria, and 18 in France. Our subsidiaries also sell

their products via outside travel agents and alternative distribution

channels such as the Internet, call centres and digital TV.

Business Travel

The prime focus of our Business Travel operations, which trade

under the BTI brand, is on providing products and services that are

geared to the needs of our various business customers, from small

and mid-sized companies to bigger national and international cor-

porations.

Our business travel specialists are far more than travel agents,

though. Managing travel budgets – not just to keep costs low but

to reduce them over the longer term – is a key requirement here.

“Travel and entertainment” are one of the bigger cost items in

a company’s accounts. Their prominence is growing, too, with the

globalisation of the world economy and the greater need for

international travel and intracompany communications that this

development entails.

This is why effecting a tangible and sustainable reduction in

their clients’ travel costs is one of the prime duties of Kuoni’s

business travel specialists. It is a task that is tackled at three distinct

levels: direct travel costs (where efforts are made to enhance the pur-

chasing process), structural costs (whether to run an in-house travel

unit or outsource these activities) and process costs

(optimising the company’s

own processes and proce-

dures). These activities

also make extensive

use of the Internet

and of system-based

solutions such as online

booking applications.

76

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The average years of ser-

vice for staff in our Swiss

home market – eight – is a fur-

ther source of satisfaction.

The relative longevity of

employment can be attributed

to a flexible personnel policy,

attractive career and develop-

ment possibilities within the

Group and an active training

philosophy on the one hand,

and to the “young” working

environment and open ma-

nagement culture on the other.

The Group’s openness and fle-

xibility are also reflected in its

progressive working arrange-

ments, which include job sha-

ring and freelance models.

And with activities in 25 countries in almost every corner of the

Earth, Kuoni can offer its staff attractive international deploy-

ments, too.

Our personnel are crucial to our business success, as the follo-

wing three portraits reveal. Each of them reflects the sense of co-

responsibility, the willingness to change and the love of serving our

customers as best we can that are both the hallmarks of our present

product and the key to our further success.

Job portraits:Daniela Stettler, Teamleader on Majorca

The Kuoni Group has more than 250 tour guides working for it all

around the world. Daniela Stettler heads Kuoni Switzerland’s ten-

member team on Majorca. Having spent the winter “at home”, the

team leader heads back to the island in March to make her first

preparations for the coming summer season: familiarising herself

79S T A F F

Motivation and innovation

Kuoni is convinced that a positive corporate culture can only be

created and maintained if it is based on strong management

principles which are familiar to all personnel. It is a fundamental

tenet that is all the more essential in view of the overall struc-

ture of the global Kuoni Group: centrally organised, but with a

strongly federalist management approach.

The Kuoni Group employed 7,946 personnel around the world at

the end of 2000, 21.3% more than the previous year. The increase

is due to the Group’s continuing organic growth and the expansion

of its activities in India, Sweden

and the USA.

The above-average propor-

tion of employees in the 20-to-

35 age group is typical of the

tourist sector worldwide, and

around two thirds of the Kuoni

Group’s personnel fall into

this age category. Two thirds of

Kuoni employees are female,

too. Over the past few years, the Group has substantially increa-

sed the percentage of women in its middle-manager ranks:

around half the Group’s management posi-

tions around the world are now occupied

by women employees. Group Manage-

ment also saw its first female

appointee – Sue Biggs of

the United Kingdom –

at the beginning of 2001.

78

Management principles

of the Kuoni Group

1. We lead and manage by defining

clear objectives and by measuring

performance.

2. We delegate and define responsibili-

ties and competences.

3. We encourage entrepreneurship,

support innovative action and the

ensuing entrepreneurial risk.

4. We take decisions and act on them

swiftly and decisively.

5. Our communication is open and

frank – difficult topics included.

6. We live what we say, we are credible.

7. We face criticism and deal with con-

flict constructively.

8. Our remuneration principles are fair

and we reward outstanding perfor-

mance.

“ We motivate our

staff by encouraging

entrepreneurship

and innovation at

all levels.”

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“I see my work as more than just a job”, Daniela concludes.

“I see it as a school for life!”

Heidrun Schaffner, Manager of a Business Travel Center

Having worked in the travel business for more than 30 years,

Heidrun Schaffner has a pretty good idea of what her customers

want. And she has realised for some time that business travel clients

have very special needs.

Which may explain why the

51-year-old team leader at

Kuoni’s Business Travel Cen-

ter in Meckenbeuren, Ger-

many, and her 14 colleagues

generate business travel turn-

over of some DEM 24 mil-

lion a year.

A typical day for Heid-

run will begin with current bookings: making and confirming reser-

vations, issuing tickets and the like. “But the telephone is rarely

quiet for long”, she adds. “The first customers tend to call when

we’re just opening up.”

Most business travel customers come with clear and concrete

instructions. They know where they are going, they know

how long they want to stay, and they have a clear idea of what their

hotel should be like. The main assistance they need is in finding

out about the flights, reserving their hotel and rental car, and – of

course – any advice the agent can offer on the pricing front.

Customer profiles are a valuable worktool for Kuoni’s business

travel teams. They can provide a host of information on the custo-

mer’s tastes and habits, and substantially reduce the time spent

making the necessary arrangements. In most cases, the booking will

be entered in the reservation system along with the request, con-

firmed by fax or e-mail, and passed on to the ticketing agent, who

will issue the ticket and mail or courier it to the client.

81S T A F F

with the destination, checking the excursion programmes, intro-

ducing the new tour guides to their duties and planning their work

rosters.

The overriding aim of all these activities, of course, is to pro-

vide Kuoni’s guests with the best possible care and assistance. To do

so, the guides will tell their visitors as much as they can about the

country and its people, suggest excursions, provide advice on car

and cycle rentals, and offer restaurant and shopping tips. Daniela

coaches her team in all these areas. And she’ll be on hand to help

out if any difficulties arise: a trip to hospital, for instance, if a guest

has an accident or is suddenly taken ill.

During the season, Daniela and her team will go to the airport

several times a week to say goodbye to departing guests and wel-

come the new arrivals. Needless to say, Daniela’s job also entails

maintaining good relations with the local travel agency, the ho-

teliers and other service providers. And – though they pose no pro-

blem for this former businesswoman – administrative tasks such

as invoicing, compiling statistics and organising schedules and ex-

penses are all part of her work, too.

Every day is a new challenge for Daniela – as aspect of her

activities that she clearly enjoys. “What I like about the job is that

it’s a good mix of management duties and frontline work”, she

explains. “I can make use of my experience and my improvisational

skills, too. And I’ve really got to know the country and its people

through my work.”

At the end of each season, Daniela

strikes camp and heads off for a new

destination. It’s a rhythm and a lifestyle

that call for a lot of flexibility, strong

self-motivation and an extrovert streak.

80

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with London, Paris, the Netherlands and Italy, all within 12 to

17 days.

“Our Indian guests are very discerning”, Stephanie explains.

“After all, many of them will have been saving up for this trip

all their lives. So they expect perfect service and the smoothest of

organisations.” Her Incoming team also arrange a special service

for their Indian visitors: most of the

groups are accompanied by a travel-

ling kitchen to prepare their largely

vegetarian meals.

Very few hotels in Europe are

equipped to handle groups of this

size. One of the easiest destinations

in this regard is Engelberg in Central Switzerland: Stephanie and

her team have enjoyed an excellent collaboration for the last

two years with the resort Hotel Terrace, which specialises in Indian

guests.

Needless to say, given the number of customers they look after,

Stephanie and her team have their fair share of organisational

problems in the course of the year. Like the group in Amsterdam

who were so taken by the shopping possibilities that they missed

their ferry. In situations like these, it’s improvisation and nego-

tiating skills that are most urgently required. “But that’s just what

makes my work so varied”, Stephanie explains. “Still”, she adds,

“with all the technology we can call on today, in our reservations

and our accounting, it’s certainly less hectic than it was a few

years ago!”

83S T A F F

“I think what’s unique about the business travel sector is the

contact you have with your customers”, Heidrun says. BTI

Meckenbeuren’s business travel customers contact the office almost

every week, and many of them have known Heidrun for years.

Still, today’s business travel sector is marked by a tough pricing

war among both the travel operators and the airlines. Customers

have become more cost-conscious, too; and they know their way

around the travel sector better than they did a few years ago.

“But that’s just what makes our job so challenging”, Heidrun ex-

plains. “If we can be creative and come up with our own ideas

and suggestions, we can really show our customer how to make

their business travel management even better than before!”

Stephanie Dawson,Specialist at Incoming Services Europe

For Kuoni India and its European service providers, Zurich’s

Incoming Services have a key interface function. Stephanie Dawson,

a 31-year-old Malaysian, has been working with Incoming Services

for eight years now, and currently organises European tours

for groups of Indian visitors with the rest of her four-person team.

For Stephanie and her colleagues, preparations for the travel

season are in full flow by early March. They need to be: before the

first Indian visitors arrive in Europe two

months later, there are itineraries

to finalise, hotels and services to

book, prices to fix and –

together with Kuoni India –

a brochure to produce.

The main travel season for

this customer segment

is from the end of April to

October; and every year

will see up to 350 groups of 50 per-

sons travel to Europe to visit

Switzerland (and its peaks) along

82

“Our guests do

expect a

perfect service.“

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E N V I R O N M E N T A L C A R E

Committed to eco-quality

Ecological concern is a Kuoni concern. The Kuoni Group practises

active environmental management at a national and an inter-

national level. We are convinced that unspoilt landscapes, clean

water and good-quality air are crucial to the long-term sustain-

ability of the tourist sector.

“We support environmentally friendly ideas and solutions” – our

commitment to ecological care is enshrined in our Group Mission

Statement. Yet we also believe that global challenges call for global

solutions. That is why we attach great importance to our inter-

national collaborations on the ecological front: Kuoni is a member

of Green Globe 21 and plays an active role in the organisation,

with Board Chairman Daniel Affolter on its directors’ board as well

as Geoffrey H. Lipman, member

of the Board of Directors and CEO

of Green Globe 21.

Founded in 1994 by the World

Travel & Tourism Council, Green

Globe 21 is dedicated to environ-

mental management and awareness.

Based in Bournemouth (UK),

the organisation was formed in the

light of Agenda 21 of the 1992 Rio Earth Summit, and promotes

sustainable travel and tourism around the world. It does so by wor-

king with specialists in environmental affairs and the tourist

sector to devise global norms and certifications that enable consu-

mers to be as eco-minded as possible in their travel and vacation

arrangements.

2000 saw Kuoni Travel Holding Ltd. hold its first CO2-neutral

Shareholders’ Meeting. This was achieved by planting trees in Swit-

zerland and on Sumatra to offset the total carbon dioxide emissions

85

“ We support

environmentally

friendly ideas

and solutions.”

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and extends to close collaboration with

local hotels. To provide incentives for

ecological operations, and in view of the

growing ranks of customers who in-

clude environmental considerations in

their choice of travel and vacation

product, we have also introduced our

“Green Planet Awards” to our home

Swiss market. Some 23 Mediterranean

hotels with sound ecological credentials have

already earned the distinction and been designated as such in the

relevant documentation. The award will now be extended to hotels

at our long-haul destinations.

Business ecology focuses on optimising materials cycles in our

Swiss organisation. In line with our commitment to a responsible

use of natural resources, our Zurich head office was recently refur-

bished – at considerable expense – on sound ecological principles.

The work, which included the installation of low-energy lighting,

less air-conditioning, water regulators and insulated glass for

offices and sales areas, the adoption of a new waste concept and

a switch to ecofriendly office materials, was completed by the

end of 2000.

Kuoni also adopted “green” technology for the latest addition

to its Edelweiss Air fleet. With its state-of-the-art powerplants, the

long-haul Airbus A330-220, which entered service in November

2000, burns 20 per cent less fuel, produces fewer pollutants and

generates less noise than older-generation aircraft.

87E N V I R O N M E N T A L C A R E

caused by attendees’ travel to

and from the meeting and the

CO2 generated by electricity,

heating and water consumed at

the event.

Further proof of Kuoni’s

eco-commitment was offered by

the creation of a new Environ-

mental Affairs post for Switzer-

land in May 2000. The full-

time Environment Officer is

currently developing a pro-

gramme for the company’s

Swiss-based operations – a

“business ecology” component

for internal activities and a

“product ecology” component

for actions aimed at outside

markets.

Product ecology begins

with the planning of new travel

products, embraces staff trai-

ning and customer information

86

The Green Planet

Award

The Green Planet Award is the latest

seal of eco-approval from Kuoni Swit-

zerland. The award is bestowed on

hotels that meet clearly-defined

ecological criteria. The first distinc-

tions were awarded on the strength

of a detailed questionnaire that was

sent to hotels in summer 2000 and

covered areas such as:

• their water, energy and waste

management activities

• raising environmental awareness

among guests

• the training their personnel receive

on ecological issues and

• their future development plans.

Of the 335 resort hotels that received

the questionnaire, 128 completed

and returned it. Of these, 23 earned

their Green Planet Award, and were

presented as such in our 2001 beach

holiday catalogue.

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S O C I A L C O M M I T M E N T

A partnership for the future

In its collaboration with SOS Children’s Village, Kuoni supports a

partner which has been working for over 50 years to provide

abandoned or needy children with a mother, a home and an edu-

cation – like the 40 youngsters from Tibet who have found a new

home at the Kuoni House in Gopalpur in Northern India.

When the Dalai Lama fled to India in 1959, tens of thousands of

Tibetans followed. Today, some 130,000 of his people live in exile,

most of them on the Indian subcontinent. Many inhabitants of

Tibet today still send their children to India, hoping that they can

better maintain their culture and religion in their new adopted

country. After an arduous trek

through the Himalayas, these

youngsters often find refuge in

one of the eight Tibetan SOS

children’s villages just across

the Indian border.

One of these is located

among the green hills of

Gopalpur in the state of

Himachal Pradesh, close to Dharamsala, where the Dalai Lama

resides. The village offers a new home and an education to some

900 youngsters, and is financed by Swiss-based donors who in-

clude the Kuoni Group.

89

“ We strive to put

something back

into the destinations

we offer.”

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91S O C I A L C O M M I T M E N T

28-year-old

Chonkyi Lhamo is

mother to the 40 chil-

dren aged between

five and 17 who live in

the village’s Kuoni

House. The 30 houses

in the Gopalpur chil-

dren’s village have all

been built to the same

basic design. The

accommodation is modest, but offers all the essentials required.

The first place the visitor comes to on entering the house is the

communal area, which has a small altar devoted to the Dalai Lama

along with a few wooden

benches. The house also

boasts a kitchen, a wash-

room with five toilets, and

a boys’ and a girls’ dormi-

tory. Each of the older chil-

dren shares a bed with one

of their younger “siblings”.

The children are taught

English alongside the Tibe-

tan language from kinder-

garten on. Hindi is taken up

later, too. It all seems to offer a solid and sensible foundation:

12-year-old Tenzin Dikyi, whom we meet in the village, wants to

be a doctor when she grows up.

90

Our involvement with SOS Children’s Village

The peoples, landscapes and cultures of the

countries of the world are the raw materials of our

tour operating activities. This is why we strive to

put something back into the destinations we offer.

The Kuoni Group, the Kuoni and Hugentobler Foun-

dation and our national subsidiary companies have

been supporting SOS Children’s Village and their work since 1997. The organisation

is the biggest private children’s charity in the world: with the help of its sponsors

and donors, it has built up a network of more than 400 villages in 131 countries.

Most villages have their own kindergarten, and some have their own school, too.

Local women are specially trained to act as ‘mothers’ in the villages’ various houses,

each of which is home to a “family” of children.

The Kuoni Group’s involvement with SOS Children’s Village has already extended

to major house projects in the Dominican Republic, South Africa and India. And

many employees throughout the Group act as “SOS ambassadors”, organising fund-

raising projects and events.

“Many employees

throughout the Group

act as ‘SOS am-

bassadors‘, organising

fund-raising

projects and events.”

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Austria

N-U-R Neckermann Reisen AG Franz Erich Tobisch

Lassallestrasse 7a / Cityplex Managing Director

AT-1020 Vienna

Phone (+43) 1-50 202-400

Fax (+43) 1-50 202-390

e-mail [email protected]

Reisebüro Kuoni Ges.m.b.H. Dr. Gunther Hölbl

Modecenterstrasse 16 Managing Director

AT-1030 Vienna

Phone (+43) 1-796 70 72-510

Fax (+43) 1-796 70 72-515

e-mail [email protected]

Restplatzbörse Ges.m.b.H. Paul Kothbauer

Mariahilferstrasse 77 Managing Director

AT-1060 Vienna

Phone (+43) 1-58085

Fax (+43) 1-58085-995

e-mail [email protected]

Caribbean

Discovery Bay Beach Hotel Chetwyn Burnham

Holetown Resident Manager

St. James, Barbados W.I.

Phone (+1) 246-432 13 01

Fax (+1) 246-432 25 53

e-mail [email protected]

Hawksbill Beach Hotel Peter Ramrattan

Five Islands, P.O. Box 108 Area Manager

St. John’s, Antigua W.I.

Phone (+1) 268-462 03 01

Fax (+1) 268-462 15 15

e-mail [email protected]

93A D D R E S S E S

Kuoni Travel Holding Ltd.

Kuoni Travel Holding Ltd.

Neue Hard 7

CH-8010 Zurich

Phone (+41) 1-277 44 44

Fax (+41) 1-271 52 82

e-mail [email protected]

Countries are listed alphabetically as are the companies within each country.

Asia

P&O Travel Ltd. Richard Willis

New T&T Centre, Unit 1307–09 Managing Director

13th floor

Harbour City

TST Kowloon, Hong Kong

Phone (+852) 2956 6888

Fax (+852) 2956 6789

e-mail [email protected]

P&O Travel Pte. Ltd. K.Y. Chung

No. 200 Cantonment Road Managing Director

#04–05 Southpoint

Singapore 089763

Phone (+65) 224 7730

Fax (+65) 222 7915

e-mail [email protected]

Austria

Allround Travel Michael Manak

International GmbH Managing Director

Reisnerstrasse 18

AT-1030 Vienna

Phone (+43) 1-712 24 666

Fax (+43) 1-713 68 38

e-mail [email protected]

92

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Hungary

Kuoni Utazási Iroda Kft. András Rónai

Báthory utca 19 Managing Director

HU-1054 Budapest

Phone (+36) 1-269 45 84

Fax (+36) 1-353 43 50

e-mail [email protected]

N-U-R Neckermann Utazás Kft. Dr. Veronika Békefi

Dayka Gabor utca 3 Managing Director

HU-1118 Budapest

Phone (+36) 1-319 69 91

Fax (+36) 1-319 66 96

e-mail [email protected]

India

Kuoni Travel (India) Ltd. Ranjit Malkani

Vaswani Mansion Managing Director

120 Dinshaw Vachha Road

Opp. K.C. College

Churchgate, Mumbai - 400 020

Phone (+91) 22 2839813/14/17

Fax (+91) 22 2855840

e-mail [email protected]

SITA World Travel / Ranjit Malkani

Kuoni Travel (India) Ltd. Managing Director

4 Malcha Marg Shopping Centre

Diplomatic Enclave

New Delhi – 110 021

Phone (+91) 11 6111122

Fax (+91) 11 6870123 or 11 6113572

e-mail [email protected]

Italy

Kuoni Gastaldi Tours S.p.A. Ermanno Fici

Mura di Santa Chiara 1 Managing Director

IT-16128 Genoa

Phone (+39) 010-5968 1

Fax (+39) 010-5968 818

e-mail [email protected]

95A D D R E S S E S

Denmark

Alletiders Rejser A/S Peter Kisbye

Kongevejen 155 Managing Director

DK-2830 Virum

Phone (+45) 45 95 51 26

Fax (+45) 45 95 52 81

e-mail [email protected]

France

Voyages Kuoni SA Jean-Paul Veslot

95, rue d’Amsterdam Managing Director

FR-75008 Paris

Phone (+33) 1-42 85 71 22

Fax (+33) 1-42 80 41 85

e-mail [email protected]

Germany

BTI Euro Lloyd GmbH & Co. KG Reto Bacher

Neumarkt 35–37 Executiv Vice-President

DE-50667 Cologne Business Travel

Phone (+49) 221-20 28 0

Fax (+49) 221-20 28 178

e-mail [email protected]

Greece

Hellenic Tours S.A. George Georgopoulos

23–25 Ermou Street Managing Director

GR-10563 Athens

Phone (+30) 1-3359 700

and 3243 715

Fax (+30) 1-3234 947

and 3227 494

e-mail [email protected]

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Switzerland

BTI Central Europe and Reto Bacher

Kuoni Geschäftsreisen AG Executive Vice-President

Postfach 252 Business Travel

CH-8064 Zurich

Phone (+41) 1-736 58 58

Fax (+41) 1-736 58 01

e-mail [email protected]

Edelweiss Air AG Niklaus Grob

Operations Center Managing Director

Postfach

CH-8058 Zurich-Airport

Phone (+41) 1-816 50 60

Fax (+41) 1-816 50 61

e-mail [email protected]

Kuoni Reisen AG Thomas Stirnimann

Neue Hard 7 Executive Vice- President

CH-8010 Zurich Charter Activities

Phone (+41) 1-277 44 44

Fax (+41) 1-271 52 82

e-mail [email protected]

Kuoni Reisen AG Ibrahim Atallah

Incoming Services Senior Vice-President

Überlandstrasse 360 Incoming

CH-8051 Zurich

Phone (+41) 1-325 21 11

Fax (+41) 1-321 19 09

e-mail [email protected]

Manta Reisen AG Amy Stierli

Treichlerstrasse 10 Managing Director

CH-8032 Zurich

Phone (+41) 1-268 24 24

Fax (+41) 1-268 24 74

e-mail [email protected]

97A D D R E S S E S

Kenya

Private Safaris East Africa Ltd. Alexander Spiro

Twinstar Bldg Managing Director

Mombasa Road

P.O. Box 45205

Nairobi

Phone (+254) 2 53 06 01

Fax (+254) 2 53 38 54

e-mail [email protected]

Netherlands

Special Traffic Norbert Good

(Kuoni Travel Nederland B.V.) Managing Director

Entrada 211–214

P.O. Box 3370

NL-1001 AD Amsterdam

Phone (+31) 20-398 92 92

Fax (+31) 20-398 92 02

e-mail [email protected]

Spain

Viajes Kuoni S.A. Daniel Ponzo

Paseo Infanta Isabel, 17 Managing Director

ES-28014 Madrid

Phone (+34) 91-538 27 00

Fax (+34) 91-538 27 27

e-mail [email protected]

Sweden

Apollo Resor AB Peter Wetterstrand

Sveavägen 155, 9tr Managing Director

SE-11346 Stockholm

Phone (+46) 8-673 84 00

Fax (+46) 8-673 85 19

e-mail [email protected]

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United Kingdom

Kuoni Travel Ltd. Peter Diethelm

Kuoni House Executive Vice-President

GB-Dorking, Surrey RH5 4AZ Specialists United Kingdom

& North AmericaPhone (+44) 1306 74 08 88

Sita LONBTSRSue Biggs

Fax (+44) 1306 74 44 88Managing Director

e-mail [email protected]

Travel Promotions Ltd. John Dawson

Voyages Jules Verne General Manager

21, Dorset Square

GB-London, NW1 6QG David Pattison

Manager Products Phone (+44) 20 7 616 10 00

and MarketingFax (+44) 20 7 723 86 29

e-mail [email protected]

USA

Intrav, Inc. Ian Coghlan

7711 Bonhomme Avenue Managing Director, CEO

St. Louis, MO 63105

Phone (+1) 314 727-0500

Fax (+1) 314 727-2533

e-mail [email protected]

T PRO Inc. Kerrin Behrend

1500 Broadway, 32nd floor Managing Director, CEO

New York, NY 10036

Phone (+1) 212 852-8776

Fax (+1) 212 302-8785

e-mail [email protected]

99A D D R E S S E S

Switzerland

Privat Safaris Reisebüro AG Urs Bellmont

Wiesenstrasse 10, Postfach Managing Director

CH-8034 Zurich

Phone (+41) 1-386 46 46

Fax (+41) 1-386 46 47

e-mail [email protected]

PRS AG Hans-Jörg Leuzinger

Seestrasse 127 Gianni Moccetti

CH-8700 Küsnacht Managing Directors

Phone (+41) 1-914 25 30

Fax (+41) 1-914 25 35

e-mail [email protected]

Railtour Suisse SA René Keller

Chutzenstrasse 24 Werner Schindler

CH-3000 Berne 17 Managing Directors

Phone (+41) 31-378 01 11

Fax (+41) 31-378 02 22

e-mail [email protected]

Reisebüro Popularis Rolf Bühler

Löwenstrasse 66 Managing Director

CH-8021 Zurich

Phone (+41) 1-215 10 50

Fax (+41) 1-215 10 40

e-mail [email protected]

Rotunda Tours AG Cornel Merki

Wiesenstrasse 10, Postfach Managing Director

CH-8034 Zurich

Phone (+41) 1-386 46 66

Fax (+41) 1-386 46 88

e-mail [email protected]

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Dane ToursA Danish scheduled air travel specia-list acquired by the Kuoni Group on1 January, 2000.

DistributionAn alternative industry term for re-tailing (→).

Edelweiss AirA Swiss-based charter airlinesubsidiary of the KuoniGroup. Its aircraftfleet, which is opera-ted for Kuoni Swit-zerland, consists ofthree AirbusA320-200s thatwere joined inautumn 2000 bya brand-new Air-bus A330-200 forlong-haul flights.

Hellenic Island ServicesKuoni’s handling agent (→ Agent) onCrete, Rhodes and Mykonos, and ajoint venture between Kuoni and Hel-lenic Tours.

Hellenic Tours S.A.Kuoni’s Athens-based subsidiary,which is active in the Incoming (→)and Business Travel market.

Helvetic ToursA travel agency chain and Kuoni Swit-zerland’s budget holiday brand.

IBUAbbreviation for the IndependentBusiness Units of Kuoni UK, each of which is active in its own nichemarket.

ImplantA travel agency which is managed by abusiness travel operator at the premisesof a key corporate customer.

IncomingThe Strategic Business Unit (→ SBU)providing services at the holiday desti-nation. Incoming consists of the headoffice in Zurich, sales outlets overseas,

local offices in Europe andKuoni subsidiaries Hellenic

Tours (→), HellenicIsland Services (→),

Private Safaris(East Africa) (→)

and T PRO (→).

Inter Holland Travel B.V.A company active in

the incoming sector inwhich the Kuoni Group has

held a 70-per-cent equitystake since January 2000.

Intrav, Inc.A US subsidiary acquired in 1999

which specialises in cruises, luxury safa-ris and exclusive holidays by private jet.

Kisbye RejserA group of four Danish travel agen-cies acquired by the Kuoni Group onJanuary 1, 2000.

Kuoni and Hugentobler FoundationThe biggest shareholder in KuoniTravel Holding Ltd. by voting rights(with 25 per cent of voting rights and 6.25 per cent of share capital).

Kuoni Gastaldi Tours S.p.A.A joint venture domiciled in Genoa,Italy, created by the merger in 1998 ofGastaldi Tours and Kuoni Viaggi.Kuoni Gastaldi Tours is Italy’s biggestlong-haul travel company.

101K U O N I G L O S S A R Y

AgentAn independent travel agency that sellsKuoni products. The term is also usedfor companies which act as handlingagents at Kuoni destinations.

Alletiders Rejser A/SA Danish-based Kuoni Group subsi-diary acquired in autumn 1998 whichis one of the country’s biggest touroperators, specialising in leisure travelto the Mediterranean and overseas.

Allround Travel International GmbH An Austrian Kuoni Group subsidiarywhich specialises in Asian travel ar-rangements.

Alternative distributionThe direct distribution of travel pro-ducts by the operator, via channelssuch as the Internet, interactive TV orcall centres.

Apollo Resor ABA Swedish tour operator in the mid-price-range segment which is alsoactive in Denmark and Norway. Ope-rates its own charter airline, Novair,and makes extensive use of the Internetin its distribution activities. A fully-owned Kuoni Group subsidiary sinceJanuary 2001.

Business Travel International (BTI)A global alliance of business travelcompanies which has an annual turn-over of some USD 20 billion. BTI has 78 national partners in 80 countries,employs around 30,000 personnel,operates over 3000 offices and is re-presented exclusively in each countryby a leading business travel specialist. Kuoni represents BTI in Switzerland,Germany, Austria, Hungary and Liech-tenstein.

CharterThe assumption of all the capacity onan aircraft (full charter) or part of the capacity available (partial charter)at one’s own commercial risk. TheKuoni Group owns two charter air-lines: Edelweiss Air (→), which is basedin Switzerland, and Novair, whichoperates from Scandinavia.

Clipper Cruise LineA subsidiary of Intrav (→) specialisingin luxury cruises.

CommercialAn industry term for business travel (→).

Cosmos GesmbHA long-established Vienna-based tra-vel agency which was acquired by theKuoni Group in April 1999.

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A traveller’s world from A–Z

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SBUStrategic Business Unit: the units intowhich the Kuoni Group is organisedfor financial reporting purposes.

Service providerAny provider of a servicefor travellers such as an air-line, a hotel or a restaurant.Often referred to as“suppliers” by touroperators.

SITA World TravelA Delhi-based KuoniGroup subsidiary acqui-red in April 2000. Mergedwith Kuoni Travel India (→)in autumn 2000 to create India’s lea-ding company in the leisure travel,business travel and incoming fields.

SOS Children’s VillageKuoni has been a partner of SOSChildren’s Village, the world’s biggestprivate children’s charity, since 1997.The organisation runs “villages” allover the world providing a home andan education for children in need.

SOTCA brand used by Kuoni Travel India(→) for leisure travel abroad.

Special Traffic A Dutch-based subsidiary of the KuoniGroup which is active in the long-haultravel market.

Sport AbroadAn IBU (→) of Kuoni UK that organi-ses travel to sports events.

The Travel Collection A brand of Kuoni UK specialising indirect sales.

Tour operatingSelecting and buying-in products andservices and bundling these intopackage holidays (→) or tailored tra-vel arrangements.

T PROA US-based Kuoni Group

subsidiary which is num-ber three in the US inco-

ming sector. The acquisi-tion of T PRO in July2000 gained Kuoni a keyfoothold in the growingUS market.

TV Travel ShopA UK (and now also Ger-

man) TV station selling air tickets,package holidays and supplementaryproducts such as travel insurance and car rentals 24 hours a day. Kuoniholds a 12.5-per-cent equity stake inthe UK-based parent company.

Vertical integrationThe expansion of business activitiesthroughout the value-adding chainwithin the same industry sector, e.g. atour operator acquiring its own ser-vice providers (→) such as hotels, air-lines or car rental companies.

Voyages Jules VerneA UK-based tour operator acquired by Kuoni in 1998 which offers qualitytours and beach holidays via directsales channels.

103K U O N I G L O S S A R Y

Kuoni Travel Holding Ltd.The holding company for the KuoniGroup.

Kuoni Travel IndiaAn Indian tour operator which theKuoni Group acquired in 1996. Indoing so, Kuoni, with its SOTC (→)brand, became India’s biggest operatorof package holidays abroad. The Kuoni Group also acquired India’sSITA World Travel (→) in April 2000.

Manta Reisen AGA 90-per-cent-owned Swiss-based sub-sidiary of the Kuoni Group which spe-cialises in travels to the Maldives anddiving holidays.

N-U-R Neckermann Reisen AGNumber two in the Austrian tour ope-rator market, and 51-per-cent-ownedby the Kuoni Group. The remaining 49 per cent is held by N-U-R TouristicGmbH, Frankfurt. Neckermann Utazás Kft., Budapest (Hungary) is a subsi-

diary of N-U-R Neckermann ReisenAG, which is also active in Sloveniaand Slovakia.

Package holidayA collection of holiday products andservices (flight, hotel, bus transfers,local representative etc.) bundled andoffered at a predetermined all-in price.

P&O Travel Ltd. AsiaA Hong Kong-based 50:50 joint ven-ture established in 1997 between theUK-based Peninsular & Oriental SteamNavigation Company (P&O Ltd.) andthe Kuoni Group.

Private Safaris (East Africa)A Nairobi-based Kuoni Group subsi-diary servicing visitors from Europeand overseas in Kenya.

Privat Safaris Reisebüro AGA Swiss-based Kuoni Group subsidiaryspecialising in East Africa.

PRS AGA Swiss-based Kuoni Group subsidiaryactive in the retailing (→) sector.

Railtour Suisse S.A.A Swiss rail travel operator, 87-per-cent-owned by the Kuoni Group since1994.

RestplatzbörseA Kuoni Group subsidiary that hashad sizable success in the Austrianmarket selling last-minute seat ca-pacity.

RetailingThe process of advising on and sellingleisure and business travel.

102