KILROY Annual Report 2011
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  • 1. Casper from KILROY in Copenhagen visiting a school in Karauli, Rajasthan, India Annual Report 2011
  • 2. Content 2 Key Figures 3 The KILROY Group 5 Report of the Board of Directors 7 KILROY travels 10 KILROY education 11 KILROY group travel 12 Our customers dream of doing KILROY deals 13 something different, studying in a foreign country, achieving self- Jysk Rejsebureau 14 realization, exploring the world and Team Benns 15 sharing their experiences with others. Financial Review 16 We are continuously trying to fulfil Management’s Statement 17 these dreams in our very own Auditors’ Report 18 dedicated way. Accounting Policies 19 Profit & Loss Account 21 We make dreams happen! Balance Sheet 22 Cash Flow Statement 24 Notes to the Accounts 25 Board of Directors and Management 31 Addresses 32 The History and the Legend 33This annual report with financial statements is presented in accordance with the Danish Financial Statements Act. The following is a translation of a Danish original document. The original Danish text shall be governing for all purposes and in case of anydiscrepancy the Danish wording shall be applicable. The Danish worded annual report is subject to approval at the ordinary general meeting on March 28, 2012, and will be filed with the Danish Commerce and Companies Agency.
  • 3. Key Figures in DKK 3 2011 2010 2009 2008 2007 Profit & Loss Account (DKK million) Turnover 1,437 1,492 1,072 1,122 1,094 EBITDA 42 35 26 22 12 EBIT 36 27 17 11 -4 Net financials 4 4 5 7 6 EBT 40 30 22 18 2 Net profit for the year 29 22 16 13 2 Balance Sheet (DKK million) C ash and bonds 198 184 193 158 162 C urrent assets 265 255 251 222 227 Total assets 291 282 262 238 253 C apital expenditure 4 23 2 4 8 Equity 56 49 40 27 30 C urrent liabilities 220 218 219 204 217 C ash flow from operating activities 35 -1 48 11 39 Key Figures EBITDA - Margin (%) EBITDA / turnover (excl. other operating income) 2.9 2.3 2.4 2.0 1.1 EBIT - Margin (%) EBIT / turnover 2.5 1.8 1.6 0.9 -0.3 Return on assets (%) EBIT / total assets 12.3 9.5 6.7 4.4 -1.5 Return on equity (%) Net profit (excl. extraordinary income/expenses) / average equity 54.6 48.8 48.5 46.4 4.6 Liquidity ratio (%) Current assets / current liabilities 120.4 117.1 114.6 108.6 104.9 Equity ratio (%) Equity (excl. minority interests) / total assets 19.2 17.5 15.3 11.2 11.8 Earnings per share (DKK) Net profit (excl. extraordinary income/expenses) / number of shares 161.2 122.3 90.6 73.3 8.8 C ash flow per share (DKK) Cash flow from operating activities / number of shares 196.3 -4.7 267.9 62.0 219.5 Proposed dividend (DKK million) 20.0 19.0 14.0 17.0 1.5 Average number of full-time employees (FTE) 311 324 280 304 318 Note. Due to the merger of KILROY Denmark and Jysk Rejsebureau per 1 January 2010 the key figures for the years 2010-2011 are not fully comparable to the years 2007-2009 Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 4. Key Figures in EUR 4 2011 2010 2009 2008 2007 Profit & Loss Account (EUR million) Turnover 192.9 200.3 144.0 150.4 146.8 EBITDA 5.6 4.7 3.5 3.0 1.7 EBIT 4.8 3.6 2.3 1.4 -0.5 Net financials 0.6 0.5 0.6 1.0 0.8 EBT 5.4 4.1 3.0 2.4 0.3 Net profit for the year 3.9 2.9 2.2 1.8 0.2 Balance Sheet (EUR million) C ash and bonds 26.6 24.7 25.9 21.3 21.7 C urrent assets 35.7 34.2 33.8 29.7 30.5 Total assets 39.1 37.9 35.3 32.0 33.9 C apital expenditure 0.5 3.1 0.3 0.5 1.1 Equity 7.5 6.6 5.4 3.6 4.0 C urrent liabilities 29.6 29.2 29.5 27.4 29.0 C ash flow from operating activities 4.7 -0.1 6.4 1.5 5.3 Key Figures EBITDA - Margin (%) EBITDA / turnover (excl. other operating income) 2.9 2.3 2.4 2.0 1.1 EBIT - Margin (%) EBIT / turnover 2.5 1.8 1.6 0.9 -0.3 Return on assets (%) EBIT / total assets 12.3 9.5 6.7 4.4 -1.5 Return on equity (%) Net profit (excl. extraordinary income/expenses) / average equity 54.6 48.8 48.5 46.4 4.6 Liquidity ratio (%) Current assets / current liabilities 120.4 117.1 114.6 108.6 104.9 Equity ratio (%) Equity (excl. minority interests) / total assets 19.2 17.5 15.3 11.2 11.8 Earnings per share (EUR) Net profit (excl. extraordinary income/expenses) / number of shares 21.6 16.4 12.2 9.8 1.2 C ash flow per share (EUR) Cash flow from operating activities / number of shares 26.4 -0.6 36.0 8.3 18.9 Proposed dividend (EUR million) 2.7 2.6 1.9 2.3 0.2 Average number of full-time employees (FTE) 311 324 280 304 318 Note. Due to the merger of KILROY Denmark and Jysk Rejsebureau per 1 January 2010 the key figures for the years 2010-2011 are not fully comparable to the years 2007-2009 Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 5. The KILROY Group 5 KILROY International A/S heads a European-based Own Operations group of companies that are leading in the segments in which they operate. The Group operates several brands in six markets, and DK employs nearly 400 people. FI Brands and Competence IS The KILROY Group believes in the importance of strong brands to NL create long-term benefits for our customers and for our company. We NO constantly allocate resources to expand our knowledge of customer SE needs and preferences. This knowledge is integrated into our branding process to create a clear and unique position in the minds of Operations through Cooperation our customers. This brand value is further supported by the high competence of our staff SkiTravelGroup who, together, comprise a platform of specialists that is regarded as an authority by our customers. DK Operation SE The KILROY Group‘s activities are separated into a number of business areas which have full profit & loss responsibility. Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 6. The KILROY Group 6 Legal Structure as per March 28, 2012 Locations Amsterdam  Bergen  Copenhagen  Gothenburg  KILROY International A/S Groningen  Helsinki  Holstebro  Lund  Odense  Oslo  (Denmark) Reykjavik  Stockholm  Trondheim  Turku  Utrecht  Uppsala  Aalborg  Aarhus 57% Horizons A/S (Denmark) 100% OY KILROY Finland AB (Finland) 100% KILROY Iceland ehf. (Iceland) 100% KILROY Norway AS (Norway) 100% KILROY Sweden AB (Sweden) 100% KILROY Netherlands B.V. (Netherlands) 100% KILROY group travel A/S (Denmark) 40% OurWorld A/S (Denmark) 27.6% SkiTravelGroup (Denmark) Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 7. Report of the Board of Directors 7 The KILROY Group delivered a robust Income, the improvement of EBITDA is Distribution result for the year 2011. 45%. The self-service sales channel continues Turnover reached DKK 1,437 million The above-mentioned reclassification also to grow, and this channel is often the compared to DKK 1,492 million in affected the turnover with DKK 51 first step in a chain of sales transactions. 2010. million, which balances the turnover in Sales channels offering personal Operating profit (EBITDA) was DKK 2011 with 2010. counselling are important to travellers 42 million, up from DKK 35 million in The EBITDA development for the KILROY planning long and complicated journeys, 2010. Group is shown in the chart below. and to very young travellers preparing The KILROY Group closed 2011 with their first trip. These channels must a profit before tax (EBT) of DKK 40 develop constantly in order to ensure million, which equals a return on significant and relevant value equity of 55% compared to 49% in propositions. EBITDA 2010. 45 3,5% In regard to physical sales locations, the The financial result of the KILROY 40 EBITDA mDKK number remained unchanged during 3,0% 2011. The Utrecht sales location has Group has met the targets for both 35 EBITDA % sales and profitability, and the Board been relocated and plans have been 2,5% of Directors considers this 30 made to relocate the Lund location. In development satisfactory. 25 2,0% general, larger units have proven essential in developing valued 42 The improved 2011 profitability stems 20 1,5% competences. 35 from several areas of the KILROY Group. 15 However, the Team Benns activities in 26 1,0% 10 22 The unique youth and student ticket Denmark and KILROY in Norway have 12 0,5% For several decades, the KILROY Group shown particularly strong development. 5 has been active in SATA (Student Air The Danish company Horizons, which 0 0,0% Travel Association), which has facilitated holds the merged operations of KILROY 2007 2008 2009 2010 2011 travel opportunities for students and Denmark and Jysk Rejsebureau, has also young people. Originally, this type of developed considerably and is now travel was conducted on the SATA contributing to the Group’s result in member’s own flight ticket stock, and accordance with expectations. settlement was made after the ticket was Market environment The increase in EBITDA must be seen in flown. This is also known as the flown the context that 2010 included a one-off 2011 offered its usual share of external revenue concept. The SATA ticket met income of DKK 6.8 million due to events that impacted the industry. That the demands of a special segment of reclassification of certain business aside, the market environment was students and other young people who segments. Adjusted for this one-off generally positive. often travel for longer periods. Those Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 8. Report of the Board of Directors 8 demands are affordable prices and a high merged company, which has been named KILROY uses mainstream technology in degree of flexibility. SkiTravelGroup. In addition to Højmark all parts of the IT infrastructure. The KILROY Group is unyielding in Rejser and Team Benns Ski, The majority of operational IT costs are keeping these demands in focus. SkiTravelGroup also operates the ski based on long-term maintenance However, the Group is also moving to brands ClickSki.com and Lion Alpin. See agreements ensuring ongoing updates, streamline the business to meet the page 6. and adoption of the newest market suppliers’ demand for seamless In August 2011, KILROY group travel A/S trends and developments. integration. This is pursued via industry divested its 15% stake in the Danish standard settlement procedures ensuring charter company Primo Tours A/S. cost-efficiency both for KILROY and the Organisation airlines. At the end of 2011, KILROY Iceland ehf. The average number of employees was established as a fully-owned The unique youth and student ticket has (fulltime equivalent) in 2011 was 311 subsidiary of KILROY International A/S. been the instrument for serving more compared to 324 in 2010. The main than 10,000 young people while en route driver for the reduction has been the in 2011. This service is primarily provided Brands & business areas transfer of staff to SkiTravelGroup in online from a central service team in During 2011, Team Benns further connection with the merger between Copenhagen. expanded its activities in Norway. Team Benns Ski and Højmark Rejser. Safaritur.no and USAtur.no have been Mergers & acquisitions added to the sub-brand “tur.no.” Once again, there are many reasons to thank our employees for their effort in As of January 1, 2011, KILROY group KILROY also expanded during 2011 by 2011. The continuous improvement of travel A/S (Team Benns) acquired 40% of adding KILROY deals to its business. See profitability has many sources - first and OurWorld A/S – a Danish-based travel more about “deals” on page 14. foremost a vigorous and determined company specialised in guided group organisation! tours. IT & other investments The KILROY Group sees the competences Also from January 1, 2011, KILROY The KILROY Group will continue to make of the sales organisation as imperative Invest A/S was merged into KILROY investments in businesses and assets for our future success. Consequently, International A/S in order to simplify and that facilitate long-term growth and resources are sharply focused on training optimise the business operation. Changes development. and upgrading the organisation. in Danish legislation made this merger Investments in IT remain a focus area. Investments in IT technology and the relevant. Thus an internal project was launched in optimisation of work processes are seen As of May 1, 2011, all skiing activities in 2011 with the purpose of developing a as an integral part of this development in the brand Team Benns Ski were merged new, enhanced selling point. A beta- order to reduce average transaction with Højmark Rejser. In return, KILROY version was released in the beginning of costs, and to save employees’ time and group travel A/S now owns 27.6% of the 2012 and initial test results are positive. focus for creating customer value. Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 9. Report of the Board of Directors 9 The chart below illustrates the understanding and respect among However, KILROY believes that education development in the number of employees cultures. However, the nature of the in a broad context is as important today and sales per employee. business also involves a significant as it was then. amount of air transportation, which To support this vision, it was decided in carries a certain environmental impact. December 2011 to establish the KILROY Employees mDKK The KILROY Group does not have an Foundation. 350 5,0 official written policy for social The purpose of the 4,5 responsibility, consequently concrete foundation is to 300 4,0 results regarding the work with social contribute to the responsibility cannot be presented at this development of 250 3,5 stage. However, the KILROY organisation international 200 3,0 has developed a Code of Conduct that understanding through supporting 2,5 was implemented in 2011 in all educational activities throughout the 150 companies of the KILROY Group. The world. 2,0 purpose of the code is to clarify how all 1,5 Initially, the KILROY Foundation received 100 individuals in the KILROY Group should a gift from KILROY International of DKK 1,0 conduct business matters. Initially, the 1,000,000 (EUR 130,000). 50 main focus has been on local issues, e.g., 0,5 general legislation, gender justice, 0 0,0 working environment and environmental Shareholder information 2007 2008 2009 2010 2011 consciousness. The ownership structures remained Number of FTE Turnover per FTE This work will proceed, and issues such unchanged during 2011. The Danish as illness, supplier evaluation and company, SSTS A/S, holds 100% of the corruption are expected to be included in shares in KILROY International A/S. the code. SSTS A/S currently has no other activities than the ownership of the Corporate Social Responsibility KILROY Foundation KILROY Group. SSTS A/S is owned by a It is a goal of the KILROY Group that Some of the companies that form the group of Nordic investors who have, or employees, suppliers and customers all KILROY Group were founded after World have had, management positions within pursue their best endeavours in a War II in an atmosphere of quest for the Group. manner that supports the neighbouring broader understanding between cultures. community and, to the extent possible, This was pursued through the exchange Expectations for 2012 limits any negative impact on the of students. It may be argued that the The expectation for 2012 is that the environment. globalisation of the world today offers KILROY Group will deliver a result close The KILROY Group business by its very intercultural interaction far beyond what to the result of 2011, save for external nature facilitates and builds the students in the forties dreamed of. events beyond the control of the Group. Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 10. KILROY travels 10 KILROY travels has built a solid reputation as the leading specialist in youth and student travel. We specialise in tailor-made packages. Our sales consultants are experts at putting together complex flight itineraries and round- the-world trips. And just as importantly, they are passionate about travelling. With KILROY, customers get the best of both worlds: expert personal service from our sales consultants, and self-service through the KILROY website. Read more at www.kilroy.eu Sweden D enmark 19% 23% 2011 Turnover per market Finland N orway 14% 31% N etherlands 13% Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 11. KILROY education 11 KILROY education is a strong brand in the student market, offering counselling to students who wish to study abroad. KILROY education works closely with recognised universities throughout the world, offering primarily fulltime degree programmes. Based on 15 years of experience, KILROY education is constantly expanding. We now offer our services in all five Nordic markets, as well as in the Netherlands. KILROY education is also launched in the Icelandic market in 2011 providing online services with local support during the ongoing startup phase. Read more at www.kilroy.eu D enmark 12% Finland Sweden 10% 35% 2011 N etherlands Turnover per 9% market N orway 34% Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 12. KILROY group travel 12 KILROY group travel maintains a dominant position in the Nordic market, specialising in youth and student educational travel. Our market share has grown steadily, and we are both ensuring and building upon our strong position by focusing on concept development and staff competence. The concept, “Go beyond sightseeing,” has been developed in collaboration with our target group, the teachers. The concept is to provide them with educational material to be used both before and during their study trip, enabling them to save time on preparation and strengthen the educational content in the order to justify the costs. Read more at www.kilroygroups.com Sweden 8% D enmark 38% N orway 2011 32% Turnover per market Finland 22% Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 13. KILROY deals 13 KILROY deals is a new brand being launched across the KILROY markets offering discounts relevant for students and youth in their daily life. KILROY deals is a development of the ISIC card (International Student Identity Card), which KILROY has represented across the Nordic countries for more than 40 years. ISIC is supported by UNESCO, has over 4 million card holders and gives access to over 40,000 benefits worldwide. Read more soon at kilroy.euKey Figures The KILROY Report of the Board of KILROY Jysk Team Benns Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board and Addresses 13 The History and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 14. Jysk Rejsebureau 14 Jysk Rejsebureau has been tailoring tours for the adventurous traveller for more than 25 years. Our sales consultants are experienced travellers themselves, and they focus on giving customers the opportunity to experience areas that are often found only where the asphalt ends and the roads turn into trails. We love to compose trips with a high content of “feeling the world” – trips that are unique in experience yet affordable. Read more at www.jr.dk D enmark 100% 2011 Turnover per market Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 15. Team Benns 15 Team Benns is a Danish travel agency specializing in a number of unique concepts which all have a solid and profitable market position. With a starting point in group travel, TEAM BENNS has expanded its product portfolio to include skiing, safaris, cruises, escorted tours and comprehensive destination programs in USA/Canada and Australia/New Zealand, aimed at the +50 segments. A number of these product lines have also been launched in Norway under the umbrella brand, “tur.no.” Read more at www.team-benns.com and www.australiatur.no / usatur.no / safaritur.no / gruppetur.no D enmark 95% 2011 Turnover per market N orway 5% Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 16. Financial Review 16 KILROY International A/S’ net liquid assets in excess of those required for Events in 2012 result in 2011 is DKK 25.4 million, normal operations, and they shall not accrue No material events have occurred after the debt locally or make other financial compared with DKK 21.6 million arrangements/-agreements. balance sheet date, which affect the in 2010. assessment of the Annual Report 2011. The financial risk of doing business in Auditing Shareholders’ equity multiple countries and currencies is managed according to established policies to ensure KPMG is sole auditor. The share capital remains unchanged at DKK that currency exposure is minimized to the 17.8 million. Free reserves including proposed extent possible. SSTS A/S Annual Report dividend total DKK 38.1 million. Total Group shareholders’ equity is DKK 55.9 million at the KILROY International’s treasury function The Annual Report of KILROY International end of the year. controls and hedges the consolidated foreign A/S is included in the Annual Report of SSTS exchange exposure. A/S. Dividends and dividend policy Established procedures for reporting are in The Annual Report of SSTS A/S can be As ordinary dividend to be decided at the place, as are limits for managing currency obtained from Annual General Meeting, the Board positions. recommends a payment of DKK 20.0 million. SSTS A/S Knabrostræde 8 These policies ensure that financial Future dividends will also be proposed with DK-1210 Copenhagen K instruments are used to limit risks. consideration to the KILROY Group’s Subsidiaries operate mainly in their own local expansion plans, continued consolidation and currencies. liquidity. In cases where the subsidiaries have foreign Financial management exchange exposure, they hedge their The KILROY Group placement policy allows exposure via the KILROY Group’s corporate placement in portfolio agreements with treasury function. weighted average duration of 1-3 years and liquid assets in the short-term money market Investments and in publicly traded securities and mortgage Investments in technology are a high priority backed bonds with a relatively short average and is considered as one of the key elements maturity. for long term sustainability. It is the policy of the KILROY Group that the In the last decade KILROY has invested liquidity ratio always exceeds 100 in order to substantial amounts in software and ensure that all short-term liabilities can be hardware. Consequently, our IT platform and paid immediately. supporting systems are up to date, flexible It is also a policy that subsidiaries do not hold and scalable. Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 17. Management’s Statement 17 Statement by the Board of It is our opinion that the consolidated financial the development in the Groups and the Directors and Management statements and the parent company financial Companys operations and financial matters statements give a true and fair view of the and the results of the Groups and the Groups and the Companys financial position Companys operations and financial position. Today, the Board of Directors have discussed at December 31, 2011 and of the results of We recommend that the annual report be and approved the annual report of KILROY the Groups and the Companys operations approved at the annual general meeting. International A/S for the financial year and cash flows for the financial year January 1 January 1 – December 31, 2011. – December 31, 2011. The annual report has been prepared in Further, in our opinion, the report of the accordance with the Danish Financial Board of Directors gives a fair assessment of Statements Act. Copenhagen, March 28, 2012 Board of Management Claus H. Hejlesen Managing Director Board of Directors Arnar Thorisson Tapio Kiiskinen Sigurdur Kiernan Claus H. Hejlesen Robert Doeleman Chairman Vice Chairman (elected by staff) Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 18. Independent Auditor’s Report 18 To the shareholders of KILROY Auditors responsibility We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our International A/S Our responsibility is to express an opinion on the opinion. consolidated financial statements and the parent Independent auditors report on the company financial statements based on our audit. We Our audit has not resulted in any qualification. consolidated financial statements conducted our audit in accordance with International Opinion and the parent company financial Standards on Auditing and additional requirements In our opinion, the consolidated financial statements under Danish audit regulation. This requires that we statements and the parent company financial statements give a comply with ethical requirements and plan and We have audited the consolidated financial perform the audit to obtain reasonable assurance as true and fair view of the Groups and the parent statements and the parent company financial to whether the consolidated financial statements and companys financial position at 31 December 2011 statements of KILROY International A/S for the the parent company financial statements are free and of the results of the Groups and the parent financial year 1 January – 31 December 2011. The from material misstatement. companys operations and consolidated cash flows for consolidated financial statements and the parent the financial year 1 January – 31 December 2011 in An audit involves performing procedures to obtain accordance with the Danish Financial Statements Act. company financial statements comprise accounting audit evidence about the amounts and disclosures in policies, income statement, balance sheet, cash flow statement and notes for the Group as well as for the the consolidated financial statements and the parent Statement on the Managements company financial statements. The procedures review parent company. The consolidated financial selected depend on the auditors judgement, statements and the parent company financial Pursuant to the Danish Financial Statements Act, we including the assessment of the risks of material statements are prepared in accordance with the have read the Managements review. We have not misstatement of the consolidated financial Danish Financial Statements Act. performed any further procedures in addition to the statements and the parent company financial audit of the consolidated financial statements and the Managements responsibility for the statements, whether due to fraud or error. In making parent company financial statements. On this basis, consolidated financial statements those risk assessments, the auditors consider internal control relevant to the Companys it is our opinion that the information provided in the and the parent company financial preparation of consolidated financial statements and Managements review is consistent with the statements parent company financial statements that give a true consolidated financial statements and the parent and fair view in order to design audit procedures that company financial statements. Management is responsible for the preparation of consolidated financial statements and parent are appropriate in the circumstances, but not for the company financial statements that give a true and purpose of expressing an opinion on the effectiveness fair view in accordance with the Danish Financial of the Companys internal control. An audit also Statements Act and for such internal control that includes evaluating the appropriateness of accounting Management determines is necessary to enable the policies used and the reasonableness of accounting preparation of consolidated financial statements and estimates made by Management, as well as parent company financial statements that are free evaluating the overall presentation of the from material misstatement, whether due to fraud or consolidated financial statements and the parent error. company financial statements. Copenhagen, March 28, 2012 KPMG Statsautoriseret Revisionspartnerselskab Sven Carlsen Per Lund State Authorised Public Accountant State Authorised Public Accountant Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 19. Accounting Policies 19 General Tax The Annual Report for 2011 for KILROY from the value of the net assets, the difference is, KILROY International A/S is jointly taxed with International A/S is presented in accordance with to the extent possible, allocated to the assets or Danish subsidiaries and the parent company SSTS the provisions of the Danish Financial Statements liabilities that have a higher or lower value. In A/S. Subsidiaries are included/excluded in the joint Act for accounting class large-C companies. addition, provisions are made for the expenses taxation at the same time, as they are The Annual Report has been prepared using the incurred at the time of purchase. included/excluded in the consolidation. same accounting policies as last year. Goodwill in connection to acquisitions is capitalised The current Danish corporation tax is allocated and amortised over a maximum 20-year period. among the jointly taxed Danish companies in Consolidated Accounts proportion to their taxable income (full absorption Newly acquired or established companies are The consolidated accounts include the annual with refunds for tax losses). included in the consolidated accounts from the date accounts of the parent company; KILROY when control was gained. Tax for the year comprises current tax, joint International A/S, and all subsidiaries that the taxation and changes in deferred tax for the year parent company controls directly or indirectly. Divested companies are included up to the date of including adjustments to tax rates. The tax expense disposal. relating to the profit/loss for the year is recognised The consolidated accounts are prepared by adding Other financial assets includes investments in non- in the income statement, and the tax expense items of a similar nature in the accounts of KILROY controlled companies. relating to changes directly recognised in equity is International A/S and its subsidiaries. recognised directly in equity. Subsidiary accounts that are included in the Deferred tax is provided under the liability method consolidated accounts are prepared in accordance Profit and Loss Account and covers all temporary differences between with the accounting policies of the parent company. accounting and tax values of the assets and Turnover Profit and loss statements of foreign subsidiaries are liabilities. Turnover includes the year’s sales of travel products converted into Danish kroner (DKK) using the and services. Deferred tax is furthermore provided for re-taxation average exchange rates for the year. Balance sheet of tax deductible losses realised in non-Danish items are converted at the exchange rate at the end Revenues from individual oriented products are associated companies, if the re-taxation is expected of the year. booked at the time of invoicing, regardless of to be realised by the associated companies’ departure date. departure from the Danish joint taxation scheme. Exchange rate adjustments of the equity of foreign subsidiaries at the beginning of the year, and Revenues from group travel products are booked in The tax value of tax loss carry-forwards will be set exchange rate adjustments of the profit and loss the accounting period that coincides with the off against deferred tax liabilities to the extent that accounts from average rates to year-end rates, are departure date of the trip. the tax losses and other tax assets are expected to posted against the Group shareholders’ equity. In Cost of products sold be utilised in the future taxable income. Deferred the consolidation of the accounts, intercompany tax is calculated according to applicable tax laws income and expenses, intercompany accounts, and Cost of products contains invoiced and accrued cost and according to the expected tax rate. intercompany profits and losses are eliminated. The of travel related products, services and financial parent company’s share in a subsidiary is calculated arrangements. as its share of the subsidiary’s net assets. Result from shares in subsidiaries Upon acquisition of a subsidiary, the share of the Net profits or losses in subsidiaries contain the net assets is calculated according to the Group’s proportionate share of net profits or losses in the accounting policies. If the purchase price deviates subsidiaries. Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 20. Accounting Policies 20 Balance Sheet Dividend The cash flow statement shows the Group’s cash flow for the year and is divided into cash flow from Fixed assets Dividend is stated in the accounts at the time when operating, investing and financial activities. the company at the Annual General Meeting, the Fixed assets are carried at cost less accumulated company thereby having incurred a liability, decides Cash flow from operating activities covers cash flow depreciation and impairment. Assets are written it. The dividend that is proposed for distribution is from the year’s operations, adjusted for operating down if their value has depreciated and cannot be included in the equity under the item “retained items of a non-cash nature and changes in working seen as appreciating in the near future. earnings”. capital. Depreciation is calculated on a straight-line basis of the cost according to the following guidelines, Other provisions Working capital includes current assets less liquid based on the estimated economic life of the asset: Other provisions include an estimated liability, assets and current, non-interest bearing liabilities and dividends. ▪ Software 3-5 years which will presumably lead to an outflow of ▪ Goodwill 3-20 years resources. Cash flow from investing activities covers cash flow ▪ Land and buildings 33-50 years Financial liabilities in connection with the purchase and sale of fixed ▪ Leasehold improvements 5 years Are stated at amortised cost, if not stated assets, including participating interests and other ▪ IT and other equipment 3-5 years long-term securities. otherwise. Cash flow from financing activities covers payments Participating interests in subsidiaries Rent and leasing to and from shareholders, together with the raising Participating interests in subsidiaries are valued The parent company and the Group have entered of and repayment of interest bearing liabilities. according to the equity method at the proportionate into rental and leasing agreements for offices and Liquid assets are cash holdings, money market share of the net assets. equipment for multi-year periods. deposits in banks, and marketable securities stated Financial assets Rental and leasing expenses are stated in the profit under current assets. Are recognised at fair value, if available otherwise and loss account for the applicable period. at cost. The aggregate rental and leasing liability is stated under contingent liabilities. Inventories Goods for resale are measured at cost price. Currency conversion Write-downs are made according to obsolescence Accounts in foreign currency are stated at the and other forms of value depreciation. exchange rate at year-end. Gains and losses are included in financial items. Currency contracts to Receivables hedge forward income and expenses are booked in the profit and loss account at market values. Receivables are stated at amortized cost net of provisions for possible losses. Currency contracts to hedge incomes and expenses that are booked are included in the profit and loss Prepaid expenses at market value of the currency contract. Changes Prepaid expenses are measured at cost. in the value of the hedging instrument after tax are stated directly in the equity until the hedged asset Bonds and securities is realised. Publicly traded bonds are stated at the market Cash Flow Statement value at year-end. Realised and unrealised gains and losses are included in the profit and loss The cash flow statement is presented according to account. the indirect method based on the operating profit. Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 21. Profit & Loss Account 21 January 1 - December 31 Group Parent 2011 2010 2011 2010 Note kDKK kDKK kDKK kDKK Turnover 1,437,333 1,492,059 17,272 17,152 Cost of products sold -1,201,484 -1,267,397 1,094 2,670 Gross profit 235,849 224,662 18,366 19,822 1 Sales and administrative costs -62,712 -63,167 -1,381 -384 2 Personnel costs -131,500 -126,848 -23,641 -21,242 EBITDA 41,637 34,647 -6,656 -1,804 3 Depreciation -5,790 -7,951 -968 -1,099 EBIT 35,847 26,696 -7,624 -2,903 6 Result from shares in subsidiaries - - 30,079 22,569 4 Financial income, net 4,197 3,706 1,352 2,051 EBT 40,044 30,402 23,807 21,717 5 Tax -11,285 -8,581 1,628 -127 Net profit for the year 28,759 21,821 25,435 21,590 Gain/loss attributable to minority -3,324 -231 Result attributable to KILROY International A/S 25,435 21,590 Proposed appropriation of net result: Retained earnings at the beginning of the year 31,581 22,209 Net profit for the year 25,435 21,590 Paid dividend -19,000 -14,000 Other free reserves 83 1,782 38,099 31,581 Proposed dividend -20,000 -19,000 Retained earnings at the end of the year 18,099 12,581 Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 22. Balance Sheet 22 December 31 Group Parent ASSETS 2011 2010 2011 2010 Note kDKK kDKK kDKK kDKK FIXED ASSETS Software 3,838 2,792 3,827 2,792 Goodwill 13,040 17,737 - - 3 Intangible fixed assets 16,878 20,529 3,827 2,792 Land and buildings 785 815 - - Leasehold improvements 2,578 2,017 133 172 IT hardware and other equipment 1,613 2,155 731 644 3 Tangible fixed assets 4,976 4,987 864 816 6 Shares in subsidiaries - - 73,725 62,058 6 Other financial assets 3,933 1,686 - - Financial fixed assets 3,933 1,686 73,725 62,058 TOTAL FIXED ASSETS 25,787 27,202 78,416 65,666 CURRENT ASSETS Inventories 3,106 4,005 - - Trade debtors 30,840 28,716 1,372 1,134 Amounts due from affiliated companies 19,552 22,652 19,752 30,160 Other receivables 3,538 3,272 959 960 Prepaid expenses and accrued income 10,538 11,932 511 1,082 Total receivables 64,468 66,572 22,594 33,336 Bonds and securities 451 660 281 355 Cash at bank and in hand 197,080 183,803 58,414 69,239 TOTAL CURRENT ASSETS 265,105 255,040 81,289 102,930 TOTAL ASSETS 290,892 282,242 159,705 168,596 Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 23. Balance Sheet 23 December 31 Group Parent LIABILITIES 2011 2010 2011 2010 Note kDKK kDKK kDKK kDKK EQUITY Share capital 17,839 17,839 17,839 17,839 Proposed dividend 20,000 19,000 20,000 19,000 Retained earnings 18,098 12,581 18,099 12,581 55,937 49,420 55,938 49,420 Minority interests 8,939 5,615 - - 7 TOTAL EQUITY 64,877 55,035 55,938 49,420 PROVISIONS 8 Other provisions 4,467 5,953 4,467 5,953 5 Deferred tax 921 2,679 829 2,332 TOTAL PROVISIONS 5,388 8,632 5,296 8,285 LONG-TERM LIABILITIES 9 Long-term debt 483 800 - - TOTAL LONG-TERM LIABILITIES 483 800 0 0 CURRENT LIABILITIES Trade creditors 127,438 153,730 2,457 2,551 Amounts owed to subsidiaries - - 90,724 100,653 Other liabilities 26,917 17,333 1,838 4,207 Accrued liabilities 13,394 29,023 3,452 3,480 10 Advance payments 52,395 17,689 - - TOTAL CURRENT LIABILITIES *) 220,144 217,775 98,471 110,891 TOTAL LIABILITIES 290,892 282,242 159,705 168,596 11 Contingent assets, liabilities and secured debt 12 Subsidiaries 13 Related parties *) Due to reclassificatio n o f certain business segments in 201 as mentio ned in the Repo rt o f the B o ard o f Directo rs, the figures are no t fully co mparable. 0, Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 24. Cash Flow Statement 24 January 1 - December 31 Group Parent 2011 2010 2011 2010 kDKK kDKK kDKK kDKK EBIT 35,847 26,696 -7,624 -7,013 Adjustments for non-cash items Depreciation 5,790 7,951 968 449 Exchange rate and other adjustments 862 2,815 198 413 Working capital Change in inventories 900 -201 0 0 Change in receivables -2,215 -8,321 7,642 -2,802 Change in other provisions -1,487 5,953 -1,487 0 Change in trade creditors -26,292 21,105 -94 -2,383 Change in other liabilities 24,850 -53,153 -9,381 -26,940 Cash flow from operating activities before financial items 38,255 2,845 -9,777 -38,276 Net interest income, etc. 3,368 2,989 1,305 1,551 Paid taxes -6,610 -6,674 -2,809 1,828 Cash flow from operating activities 35,013 -840 -11,281 -34,897 Purchase/sale of shares -2,364 -789 0 -6,940 Net purchase of plant, operating equipment etc. -3,681 -19,133 -2,051 -18 Cash flow from investment activities -6,045 -19,922 -2,051 -6,958 Capital contributions in subsidiaries 0 0 0 0 Loan to affiliated companies 3,100 3,303 3,100 3,303 Bankdebt 0 317 0 0 Dividends paid/received -19,000 -14,000 -668 15,141 Cash flow from financial activities -15,900 -10,380 2,432 18,444 Net cash flow from operating, investing and financing activities 13,068 -31,142 -10,900 -23,411 Liquid assets at the beginning of the year 184,463 192,789 69,595 68,108 Liquid assets from acquired companies 0 22,816 0 0 Liquid assets at the end of the year 197,531 184,463 58,695 44,697 Not all figures above can be found directly in the Annual Report, mainly due to the merger of KILROY Denmark and Jysk Rejsebureau. Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 25. Notes to the Accounts 25 Group Parent 1. FEES TO AUDITORS APPOINTED AT THE GENERAL MEETING 2011 2010 2011 2010 kDKK kDKK kDKK kDKK Audit services 899 848 297 300 Tax assistance 74 122 54 75 Other assurance engagements 0 21 0 0 Other assistance 292 223 42 79 Total auditor fees 1,265 1,214 393 454 Group Parent 2. PERSONNEL COSTS 2011 2010 2011 2010 kDKK kDKK kDKK kDKK Salaries and wages 110,377 107,020 21,544 19,645 Social security contributions 7,438 7,172 270 235 Pensions 6,088 5,220 924 838 Other personnel costs 7,597 7,436 903 524 Total personnel costs 131,500 126,848 23,641 21,242 In 2011 the Group employed an average of 311 persons, full time equivalent (2010: 324). In 2011 the parent company employed an average of 48 persons, full time equivalent (2010: 43). Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 26. Notes to the Accounts 26 3. FIXED ASSETS Land & Leasehold IT and other Software Goodwill buildings improvements equipment Total kDKK kDKK kDKK kDKK kDKK kDKK GROUP Cost at the beginning of 2011 48,276 39,595 1,668 9,880 34,950 134,369 Exchange rate adjustments 0 33 0 -1 13 45 Additions in year 1,485 43 0 1,209 944 3,681 Disposals in year -43,886 -17,731 0 -605 -7,240 -69,462 Cost at the end of 2011 5,875 21,940 1,668 10,483 28,667 68,633 Depreciation at the beginning of 2011 -45,484 -21,858 -853 -7,863 -32,795 -108,853 Exchange rate adjustments 0 -16 0 2 -12 -26 Disposals in year 43,886 16,566 0 605 6,833 67,890 Depreciation in year -439 -3,592 -30 -649 -1,080 -5,790 Depreciation at the end of 2011 -2,037 -8,900 -883 -7,905 -27,054 -46,779 Carrying amount at the end of 2011 3,838 13,040 785 2,578 1,613 21,854 Carrying amount at the end of 2010 2,792 17,737 815 2,017 2,155 25,516 PARENT Cost at the beginning of 2011 46,143 4,046 0 876 7,999 59,064 Additions in year 1,468 0 0 19 564 2,051 Disposals in year -43,086 -4,046 0 -605 -6,452 -54,189 Cost at the end of 2011 4,525 0 0 290 2,111 6,926 Depreciation at the beginning of 2011 -43,351 -4,046 0 -704 -7,355 -55,456 Depreciation in year -433 0 0 -58 -477 -968 Disposals in year 43,086 4,046 0 605 6,452 54,189 Depreciation at the end of 2011 -698 0 0 -157 -1,380 -2,235 Carrying amount at the end of 2011 3,827 0 0 133 731 4,691 Carrying amount at the end of 2010 2,792 0 0 172 644 3,608 Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 27. Notes to the Accounts 27 Group Parent 4. FINANCIAL INCOME, NET 2011 2010 2011 2010 kDKK kDKK kDKK kDKK Financial income 5,964 4,233 1,964 2,652 Financial expenses -1,767 -527 -612 -601 Financial income, net 4,197 3,706 1,352 2,051 Of the parent company´s financial income, kDKK 0 is interest from subsidiaries (2010: kDKK 30) and kDKK 1,085 from the parent company (2010: kDKK 1,173). Of the parent company´s financial expenses, kDKK 564 is interest to subsidiaries (2010: kDKK 332). Group Parent 5. TAX 2011 2010 2011 2010 kDKK kDKK kDKK kDKK Current tax charge 12,560 8,395 0 0 Joint taxation contributions 0 0 -567 1,517 Adjustments to previous year´s tax charge 442 0 442 0 Change in deferred tax and other changes -1,717 186 -1,503 -1,390 Total tax 11,285 8,581 -1,628 127 Deferred tax primo 2,679 2,916 2,332 3,723 Addition due to merger and sold activities -171 279 0 0 Exchange rate and other adjustments 130 -423 0 0 Change in deferred tax, net -1,717 -93 -1,503 -1,391 Deferred tax ultimo 921 2,679 829 2,332 The deferred tax liability is based on the temporary difference between the book value and the statutory value of assets and liabilities. The parent company is taxed jointly with the Danish subsidiaries. In 2011, kDKK 6,610 (2010: kDKK 6,674) was paid as corporate tax in the Group. In 2011, kDKK 3,040 (2010: kDKK 3,422) was paid as corporate tax in the parent company and jointly taxed consolidated Danish subsidiaries. Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 28. Notes to the Accounts 28 Other financial Subsidiaries assets 6. SHARES IN OTHER FINANCIAL ASSETS AND SUBSIDIARIES 2011 2010 2011 2010 kDKK kDKK kDKK kDKK Cost at the beginning of the year 1,686 186 62,655 55,715 Purchase of shares and capital contributions 3,912 1,500 23 6,940 Sale of shares and capital contributions -1,665 0 0 0 Cost at the end of the year 3,933 1,686 62,678 62,655 Adjustments at the beginning of the year -597 -2,349 Exchange rate adjustments -103 2,083 Profit after tax and minority 30,079 28,810 Dividends from subsidiaries -18,332 -29,141 Adjustments at the end of the year 11,047 -597 Book value at the end of the year 73,725 62,058 Profit after tax in subsidiaries 30,505 28,810 Amortization of goodwill -426 0 Write off of receivables in subsidiaries 0 -7,750 Assignment of liabilities to parent company 0 1,509 Result from shares in subsidiaries 30,079 22,569 A list of subsidiaries is shown on page 30 Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 29. Notes to the Accounts 29 Group Parent 7. EQUITY 2011 2010 2011 2010 kDKK kDKK kDKK kDKK Share capital at the beginning of the year 17,839 17,839 17,839 17,839 Capital adjustments 0 0 0 0 Share capital at the end of the year 17,839 17,839 17,839 17,839 Retained earnings at the beginning of the year 31,581 22,209 31,581 22,209 Exchange rate and other adjustments 83 1,782 83 1,782 Dividend paid during the year -19,000 -14,000 -19,000 -14,000 Proposed dividend 20,000 19,000 20,000 19,000 Net result of the year 5,435 2,590 5,435 2,590 Retained earnings at the end of the year 38,098 31,581 38,099 31,581 Total equity 55,937 49,420 55,938 49,420 Minority shareholders share of equity at the beginning of the year 5,615 0 Additions/Disposals 0 5,384 Share of net result 3,324 231 Minority shareholders share of equity at the end of the year 8,9390 5,6150 Total Group shareholders equity 64,876 55,035 8. OTHER PROVISIONS Deferred income that is expected to mature in future years. Uncertainty exists for both amount and maturity. Group Parent 9. LONG-TERM DEBT 2011 2010 2011 2010 kDKK kDKK kDKK kDKK Bankdebt 0 317 0 0 Employee bonds 483 483 0 0 Total Long-term debt 483 800 0 0 All debt is due between 1 to 5 years. Bank guarantee of kDKK 483 is issued to secure the obligations towards the employee bonds. Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 30. Notes to the Accounts 30 10. ADVANCE PAYMENTS Primarily prepayments from travel ordered for 2012. 11. CONTINGENT ASSETS, LIABILITIES AND SECURED DEBT The Group has entered into rent and lease obligations with remaining terms of up to 5 years. Rent and lease payments in the period of the agreements total kDKK 25.937000 (2010: kDKK 29.278000). In total kDKK 10.60000 is due in 2012. The parent company has entered into rent and lease obligations with remaining terms of 6 months. Rent and lease payments in the periods of the agreements total kDKK 621.00 (2010: kDKK 626.00). In total kDKK 621.00 is due in 2012. The KILROY Group has issued guarantees/letters of credit for an amount of mDKK 28.1 (2010: mDKK 25.6) that is secured by an equal cash pledge of deposits. Share Capital Dividend 12. SPECIFICATION OF SUBSIDIARIES Country City Currency Capital Share 2011 Horizons A/S Denmark Copenhagen DKK 5,177 57% 0 KILROY Norway AS Norway Oslo NOK 4,000 100% 6,950 KILROY Sweden AB Sweden Stockholm SEK 2,500 100% 2,000 OY KILROY Finland AB Finland Helsinki EUR 336 100% 0 KILROY Netherlands B.V. The Netherlands Amsterdam EUR 2,147 100% 0 KILROY Iceland ehf. Iceland Reykjavik ISK 500,000 100% 0 KILROY group travel A/S Denmark Copenhagen DKK 1,100 100% 10,000 - OurWorld A/S Denmark Holstebro DKK 500 40% 0 - Ski Travel Group A/S Denmark Ringkoping DKK 808 27.6% 0 13. RELATED PARTIES Related parties are SSTS A/S, Knabrostraede 8, DK-1210 Copenhagen, which owns 100% of the shares in KILROY International A/S. Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 31. Board of Directors and Management as of March 28, 2012 31 The Board of Directors’ and Management’s executive positions outside KILROY International A/S as disclosed in accordance with the Danish Financial Statements Act. Board of Directors Registered Management Arnar Thorisson Claus H. Hejlesen Chairman Managing Director & CEO, KILROY International A/S Chairman, Iceland Invest Ltd. Chairman, Iceland Properties Ltd. Henrik Kaltoft Board Member, Caoz Plc. CFO, KILROY International A/S Managing Director, OY KILROY Finland AB Tapio Kiiskinen Vice Chairman Managing Director, KILROY Iceland ehf. Chairman, Destination Lapland Ltd. Managing Director, KILROY Netherlands B.V. Member of the Finnish Association of Professional Board Members Managing Director, KILROY Norway AS Sigurdur Kiernan Allan Qvist CEO, Investum Holding Ltd. Managing Director, KILROY group travel A/S Chairman, Geogreenhouse Ltd. Monica Murphy Robert Doeleman (elected by staff) Managing Director, KILROY Sweden AB Product Manager, KILROY International A/S Ole Ærthøj Managing Director, Horizons A/S Claus H. Hejlesen Managing Director & CEO KILROY International A/S Member of World Youth Student & Educational Travel Confederation Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 32. Addresses as of March 28, 2012 32 KILROY International A/S KILROY Netherlands B.V. KILROY group travel A/S TEAM BENNS Knabrostræde 8 Singel 413-415 Knabrostræde 8 Nørregade 51 DK-1210 Copenhagen K, Denmark NL -012 WP Amsterdam, Netherlands DK-1210 Copenhagen K, Denmark DK-7500 Holstebro, Denmark kilroy.eu Oude kijk in´t Jatstraat 21 kilroygroups.com team-benns.com NL-9712 EA Groningen, Netherlands Nobelstraat 119 Nørregade 50 Kirkegata 32 Horizons A/S DK-7500 Holstebro, Denmark N-0153 Oslo, Norway Skt. Olufs Gade 2-4 NL-3512 EM Utrecht, Netherlands DK-8000 Aarhus, Denmark kilroygroups.dk team-benns.no kilroyworld.nl Jysk Rejsebureau Kaivokatu 10 D Skt. Olufs Gade 2-4 FIN-00100 Helsinki, Finland tur.no DK-8000 Aarhus, Denmark KILROY Norway A/S Kirkegata 32 Vesteraa 7 Kirkegata 32 kilroygroups.fi N-0153 Oslo, Norway DK-9000 Aalborg, Denmark N-0153 Oslo, Norway Kirkegata 32 australiatur.no Vaskerelven 32 jr.dk N-0153 Oslo, Norway gruppetur.no N-5014 Bergen, Norway safaritur.no KILROY Olav Trygvasonsgate 33 kilroygroups.no usatur.no Skindergade 28 N-7011 Trondheim, Norway DK-1159 Copenhagen K, Denmark Master Samuelsgatan 42 kilroy.no Box 7144 Vestergade 100 S-103 87 Stockholm, Sweden DK-5000 Odense C, Denmark KILROY Sweden AB kilroygroups.se kilroy.dk Master Samuelsgatan 42 Box 7144 S-103 87 Stockholm, Sweden OY KILROY Finland AB Kaivokatu 10 A Vasagatan 7 FIN-00100 Helsinki, Finland S-411 24 Gothenburg, Sweden Eerikinkatu 2 Kungsgatan 2c FIN-20100 Turku, Finland S-223 50 Lund, Sweden kilroy.fi Bredgränd 3 S-753 20 Uppsala, Sweden Auditor Attorney Main Bank KILROY Iceland ehf. KPMG Kromann Reumert Danske Bank kilroy.se Osvald Helmuths Vej 4 Sundkrogsgade 5 Holmens Kanal 2 kilroy.is Postboks 250 DK-2100 Copenhagen Ø DK-1090 Copenhagen K DK-2000 Frederiksberg Denmark Denmark Denmark Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 33. The History & the Legend 33 1946 Student organisations in all Nordic countries establish travel agencies. Young James Kilroy worked on the docks of 1951 SSTS, Scandinavian Student Travel Service was established by the Scandinavian student travel Boston back in the 1940s. His job was to load the agencies with the objective of purchasing flight seats jointly on behalf of all the agencies. The Nordic student travel organization were: DIS Rejser (Denmark), Travela (Finland), Univers great steamships of that day with huge cases of Reiser (Norway) and SFS Resebyrå (Sweden). blue jeans bound for every corner of the world. Over the years, SSTS developed into a travel organization specialized in production and wholesale of student and youth tours. Besides its founders, SSTS serves other student and One early November morning the weather was youth travel agencies in Europe and the US, and SSTS became a major travel operator, topping with 700,000 sold flight seats in 1973. However, the global oil crisis in 1973/74 changed the grey and gloomy, and James Kilroy felt more like picture totally. staying indoors, sheltered and under cover. “Hey 1987 SSTS is re-organised into a limited company. The majority shareowner is HYY Group, which is Kilroy, youre day dreaming again. Cant you ever owned by The Student Union of Helsinki University. get anything done?” 1990 A wholesale company is established in Spain. Kilroy was used to the foreman and his insults. 1991 SSTS and the Nordic travel agencies are merged into one group with SSTS as the parent company. The group’s name is changed to KILROY. And the cases full of 100 000 blue jeans were waiting to be loaded. There was no way around it 1994 The German youth travel agency ARTU is acquired. - it had to be done, might as well get on with it. 1996 A sales company is established in the Netherlands. 1998 Axcel, Denmark takes over an equity stake in KILROY travels International A/S. But as Kilroy bent down to pick up one of the Benns Rejser A/S, Denmark is acquired. The company name of Benns Rejser is later changed to heavy wooden boxes, he was struck by a great 1999 MyPlanet. idea - an idea so good, he just had to do it. With 2001 The Danish group travel company Team Travel is acquired and merged with group travel a piece of chalk he wrote in big bold letters on activities from Benns Rejser. The merged unit is branded Team Benns. each and every box: KILROY group travel A/S is established as a new parent company for group travel activities. KILROY travels Germany - ARTU GmbH is sold. 2003 The Danish ski group travel operator “Peer Gynt” is acquired. 2004 2005 Trading in the Spanish market is ceased. MyPlanet is divested. KILROY WAS HERE! The Danish ski operator Ski-experten is acquired. As these cases turned up in foreign ports all 2006 The Danish ski operator Qvistgaard Rejser is acquired. around the world, Kilroys spirit reached across HYY Group takes over Axcel’s equity stake in KILROY travels International A/S. the world as well - a really effective way of 2007 All educational activities from International Education Centre (IEC), Norway are acquired. getting around! From that moment on, whenever The ownership structure is changed. A group of Nordic investors acquires 100% of the shares in KILROY travels International A/S. The majority shareholder is Iceland Invest Ltd the foreman shouted at Kilroy that he wasnt getting anything done, Kilroy just smiled. He 2008 All educational activities from IEC Online, Finland are acquired. Furthermore KILROY education is established in Denmark and the Netherlands. knew better. In ports all over the world there 2009 The name of the parent company of the Group is changed to KILROY International A/S. were daily reminders that the foreman was all All educational activities from StudyWorld, the Netherlands are acquired. wrong. 2010 Horizons A/S is established as a merger of KILROY Denmark and Jysk Rejsebureau. Kilroy knew that theres more than one way of All travel activities from Wasteels Rejser, Denmark is acquired. crossing borders, and breaking through all kinds An ownership stake is acquired in OurWorld A/S, Denmark. of barriers to be free and independent! 2011 An ownership stake is obtained in the SkiTravelGroup which is established as a merger between the skiing activities from Team Benns and Højmark Rejser. A sales company is established in Iceland Report of The History The KILROY Jysk Financial Mgmt.s Auditors’ Accounting Profit & Loss Balance Cash Flow Notes to the Board andKey Figures the Board of KILROY Team Benns Addresses and the Group Rejsebureau Review Statement Report Policies Statement Sheet Statement Accounts Management Directors Legend
  • 34. Annual Report 2011KILROY International A/S • Knabrostræde 8 • DK-1210 Copenhagen K • CVR-no. 10 91 52 95