Kuoni Market Report 2013 English

KUONI
ANNUAL
REPORT
2013
MARKET
REPORT
FINANCIAL
REPORT
Annual Report 2013

Kuoni Travel Holding Ltd
CONTENT
01
MARKET REPORT
01_01
COMMUNICATION
01_01_01
Key figures 2013
01_01_02
Kuoni Share
10
01_01_03
Letter to the Shareholders
11
01_02
THE COMPANY
19
01_02_01
Business Areas
20
Destination Management Specialists
91
01_02_02
Review 2013
22
01_03_04
VFS Global Division
95
01_02_03
Kuonis Group Structure
24
01_03_05
Corporate Responsibility
Board of Directors
26
Executive Board
31
The Kuoni World Map
40
01_02_04
01_03
BUSINESS
42
01_03_01
Kuoni Group
43
01_03_02
GTS Division
69
01_03_03
Group Travel
71
FIT
75
Outbound & Specialists Division
79
Outbound Nordic
81
Outbound Europe/Asia
85
101
02
FINANCIAL REPORT
02_01
FIVE-YEAR-SUMMARY OF KEY DATA 112
02_04_02
Capital Structure
219
02_02
KUONI GROUP
115
02_04_03
Board of Directors
226
02_02_01
Statement of Financial Position
117
02_04_04
The Group Executive Board
240
02_02_02
Income Statement
118
02_04_05
Compensation, Shares and Loans
241
02_02_03
Statement of Comprehensive Income 119
02_04_06
Shareholders Participation Rights
242
02_04_07
109
02_02_04
Statement of Changes in Equity
120
02_02_05
Statement of Cash Flows
121
02_02_06
Accounting Principles
122
02_02_07
Notes to the Consolidated
02_04
CORPORATE GOVERNANCE
02_04_00
Introduction
217
02_04_01
Group Structure and Shareholders
218
215
Changes of Control and

Defence Measures
246
02_04_08
Auditors
248
02_04_09
Information Policy
250
132
02_04_10
Compensation Report
253
and Joint Venture
184
02_05
AGENDA
281
02_02_09
Report of Statutory Auditor
188
02_05_01
Agenda 2014
281
02_03
KUONI TRAVEL HOLDING LTD
191
Colophon
282
02_03_01
Statement of Financial Position
193
02_03_02
Income Statement
194
02_03_03
Notes
195
02_03_04
Board of Directors Proposal for the
Financial Statements
02_02_08
02_03_05
Principal Subsidiaries, Associates
Appropriation of Retained Earnings
211
Report of the Statutory Auditor
212
FAST, COMPREHENSIVE
INFORMATION
1
For further information about activities in
Switzerland, please visit kuoni.com (Quick
Search: 131xx)
holidays in Northern Europe (Kontiki), South America (Dorado Latin

Tours), and East and Southern Africa (Private Safaris) as well as for the
EBITA (CHF)
MILLION
EBIT (CHF)
MILLION
integrate intens travel, the India/China specialist, into Asia specialist

asia365 at the beginning of 2014. At the same time Croatia specialist
Unique Travel was renamed adria365.
United Kingdom
65%
Tour operating activities by the Kuoni brand and the five specialists
of bookings made through direct customer contact in 2013.
TURNOVER OVER FIVE YEARS (MILLION CHF)
maintained turnover at the prior-year level. The proportion of
>
RETAIL STORES
The number of own retail stores increased
from 26 to 30 in 2013.
4 000
5 669
5 111
3 894
30%
Asia / Pacific
3 984
58%
Europe
3 000
> this meant the overall number of Kuoni sales outlets was
2 000
increased to 30. Kuoni UK's most popular destination were the
1 000
Maldives. Holiday destinations in South America, India, Mexico and
3%
Central and
South America
Vietnam enjoyed growth. Cruises were added to the product portfolio.
2009
2010
2011
2012
4%
North America
2013
The specialist tour operator brands saw increased demand for

EBIT AND GROUP RESULT OVER FIVE YEARS (MILLION CHF)
destinations within Europe, especially for Greece, France, Spain,

For further information about activities
in the UK market, please visit kuoni.com
(Quick Search: 131xx)
5 845
6 000
5 000
tions doubled from four to eight. Added to our own network of retail
stores
5%
Middle East /
Africa
7 000
John Lewis Group was expanded in 2013, with the number of loca-
5669
191.4
154.2
SOURCE MARKET
bookings made through direct customer contact went up to 65%
The successful retail partnership with department store operator
In the side columns you will find

important figures, additional
information about key terms in the
main text, as well as extra facts
and links.
3.0%
rail specialists (Railtour/Frantour). The decision was taken in 2013 to
(2012: 57%).
2 SIDE COLUMNS
MILLION
TURNOVER (CHF)
Organic turnover growth
Among the specialist tour operator brands, there was good growth for
Global Travel Services

Division
KUONI GROUP
OUTBOUND EUROPE/ASIA
Outbound & Specialists

Division
01_03_03
Corporate
Responsibility
Quick search codes

link the printed
(Quick
report to the online
Search
13104)
version. Enter the
codes in the search
box at www.kuoni.com and
you will be taken directly to the
relevant content.
VFS Global
Division
1 QUICK-SEARCH CODES
Kuoni-Group
3 REGISTRY AND GREY PAGES

The registry takes you quickly and
directly to the most important information
in the Annual Report. At the beginning
of each chapter in the Market Report the
fundamental facts are shown in graphic
form (grey pages).
DESTINATION MIX
Germany and Scandinavia. Guided tours and holiday destinations in

the Caribbean, Southern Africa and Asia also enjoyed growth. On the
other hand, the travel freeze in the second half of 2013 brought an end
10%
Middle East /
Africa
200
to cultural trips to Egypt.
154.2
150
100
Overall, tour operating activities in the UK benefited from the
50
improved economic situation, product innovations and investments
0
50
in online booking facilities.
74.2
15.1
1.6
2009
EBIT
Group result
58.4
23.2
33.3
2010
2011
51.1
14.4
69.2
2012
2013
20%
Asia / Pacific
56%
Europe
4%
Central and
South America
10%
North America
90
PRINT VERSION
4 ANIMATED TABLES AND
ZOOM FUNCTION
The most important tables
are interactive;
information can
be hidden or
shown to suit the
individual user.
A click on the magnifying
glass symbol enlarges the
tables or charts.
5 LANGUAGE FUNCTION
In the online version you can
switch from the German to the English
version and back at any point.
English Deutsch
ONLINE VERSION
6 ADDITIONAL INFORMATION
The online version provides
additional information not
necessarily relating to 2013
about the business units and
business models.
Sections of text that appear in

the printed report are shown on
a brown background.
Additional information appears
on white.
7 DOWNLOAD MANAGER
All of the Annual Reports content
is available to download in PDF
format, and each
table can be saved
as an Excel document. All documents
can be found in
the Download
Manager that is
always visible on the left side of
the screen.
4
6
MARKET REPORT
01
01_01
COMMUNICATION
01_MARKET REPORT COMMUNICATION
KEY FIGURES 2013
01_01_01
Turnover
Group Travel
FIT (Fully Independent Traveller)
Outbound Nordic
VFS Global
Corporate
Earnings before interest and taxes (EBIT)
Group Travel
FIT (Fully Independent Traveller)
Outbound Nordic
VFS Global
Corporate
2013
2012
5669

5845

943
1802

964
1703

982
1414
417
244
0
993
1738
400
205
0
154.2
51.7
22.3
53.0
16.9
47.3

36.8
27.8
2.5
40.2
23.7
39.5
69.1
8.7
35.5
21.8
69.2
14.4
Cash flow
Free cash flow
Investments in tangible and intangible assets
Total assets
Equity
Equity ratio
160.4
124.6
46.1
2393
779
32.6%
106.4
63.5
58.4
2402
699
29.1%
Kuoni Economic Profit (KEP)

Return on invested capital (ROIC)
52.1
13.0%
56.6
2.8%
Average number of employees (full-time equivalent)
11621
12279
Net result
All information on this page can also be found on kuoni.com,

tables are available as Excel-downloads (Quick Search: 13101).
Key figures/
Kuoni Share
CHF million
01_01_02
KUONI SHARE
PERFORMANCE OF KUONI SHARE (CHF) 2013
450
400
350
300
250
200
150
SPI
100
Kuoni
50
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
CHF
Cash flow
Net result
Equity
Dividend1
Stock market prices
Annual trading volume in CHF million

Stock market capitalisation as at 31 December in CHF million
per registered share A

per registered share B
high
low
at year-end
Oct
Nov
2013
2012
8.37
41.83
3.55
17.77
40.39
201.96
1.50
7.50
410
263
403
892
1610
5.57
27.86
0.84
4.19
36.17
180.84
0.60
3.00
341
217
274
758
1096
1 Proposal of the Board of Directors to the General Meeting of Shareholders on 25 April 2014. Subject to definitive approval by the General Meeting of Shareholders.
Distribution to shareholders of a withholding tax-free appropriation from the capital contribution reserve.
10
Dec
01_01_03
Letter to the
Shareholders
LETTER TO THE
SHAREHOLDERS
11
12
LETTER TO THE SHAREHOLDERS
Dear Shareholders
01_01_03
The main earning drivers were Group Travel, FIT,

and tour operating activities within Outbound
2013 was a successful year for the Kuoni Group,
Nordic, as well as the visa services of VFS Global.
with further positive organic top line growth and

a significant increase in operating earnings (EBIT).
The integration of Gullivers Travel Associates
The Group completed its transformation successfully,
(GTA), the company acquired in 2011, was success-
and the company achieved a clear positive net result.
fully completed in 2013. Operating earnings at
Kuoni has developed into a global travel-related
increased. For Group Travel trading was particularly
both the Group Travel and FIT Business Segments

service provider with leading positions in its areas
good in the Japanese and Chinese markets during
of activity and sustainable growth prospects. This
the important summer quarter. The most impor-
business success is based on an outstanding range
tant source markets were Japan, China and Indonesia,
of services for end consumers, suppliers, online
while the most popular destinations were France,
and offline travel agencies, tour operators, aggre
Italy, Germany, the UK and Switzerland. Almost
gators and government clients. Kuonis three main
110000 coaches, and 3.2 million room nights were
activities are Destination & Accommodation
booked for group travellers.
Services, Tour Operating, and Visa Processing

Services.
Source markets in Asia/Pacific, the Middle East,

Africa and Northern and Central Europe were the
Global travel activity increased again in 2013.
main growth drivers for the FIT Business Segment
The World Tourism Organisation (UNWTO)
(online databases with Destination & Accommoda-
announced an increase of 5% of international ar-
tion Services). The highest figures for booked
rivals in 2013. The main drivers were countries
room nights in 2013 were recorded in the USA, Italy,
in the Asia/Pacific region and Europe, with growth
France and the United Kingdom. The top holiday
of 6% each. The great majority of Kuonis business
destinations in the Asia/Pacific region were
is based on these key source markets and desti
Thailand, Singapore, Malaysia, China and Australia.
nations, so this growth had a direct positive impact

on our performance. Meanwhile, however, contin-
The XML technical standard was extended across
ued political turmoil in Egypt during the summer
all of GTAs databases. As a result, hotels can now, for
and autumn of 2013 led to a freeze on travel to
example, adjust their room availabilities and prices
this northern African country that is important for
on the GTA database on an ongoing basis to match
tourism. Social and political unrest in emerging
supply and demand. 12.7 million room nights were
markets Turkey, Brazil and Thailand also had
booked on our databases in 2013.
a negative effect on various business activities.

13
01_01_03
The Outbound Nordic Segments tour operating
Visa services provider VFS Global posted further
activities generated good operating earnings albeit
strong growth in 2013, with increases in both
slightly below 2012. The decline is due mainly to
turnover and EBIT. Organic growth came to 23.6%.
lower turnover following the travel freeze to Egypt.
A total of 18.0 million visa applications were
It was possible to redirect some of the demand
processed by VFS Global around the world in 2013.
for Egypt to the Greek and Canary Islands. However,
This represents an increase of 24% on the previous
owing to general flight overcapacities, especially
year. 369 new Visa Application Centres (VACs)
to the Canary Islands, average prices fell.
were opened in 2013. At the end of December 2013,

VFS Global was operating 1136 VACs in 107 coun-
Remaining activities in Outbound Europe/Asia
tries. In addition, in 2013 the company started
Segment increased operating earnings. Particularly
processing visa applications for the Kingdom of
Switzerland generated improved turnover and
Saudi Arabia, opening 20 VACs in 10 countries
EBIT. Online activities posted a pleasing level of
for this purpose. Political upheavals delayed the
growth. In the UK, a retail partnership with lead-
opening of further offices, especially in Egypt.
ing department store operator John Lewis Group

was expanded. Particularly the specialised
tour operators contributed to higher earnings.
Kuoni Group generated organic growth in

turnover of 2.0% in 2013. Turnover came to
CHF5669million. Operating earnings before
In 2013, more than two million customers
amortisation (EBITA) rose significantly to
booked services and products from our tour
CHF191.4million (2012: CHF 117.7 million).
operator brands in Outbound Nordic and
Operating earnings (EBIT) went up to
Outbound Europe/Asia.
CHF154.2million (2012: CHF 51.7 million).

This included the one-time positive effect on
The performance of our Destination Management
reported earnings due to the change from
Specialists was mixed. Activities in Middle East
a defined benefit to a defined contribution pension
destinations attracted fewer travellers from
scheme in Switzerland. The net result improved
Southern Europe and Russia. The civil war in Syria
to CHF69.2million (2012: CHF 14.4 million).
and the terror attacks in Kenya also led to a fall
This includes the cost of withdrawing from
in demand in the Middle East and East Africa. The
loss-making European tour operating activities
European economic crisis had a negative impact
(see p. 47 for details).
on demand for holidays in the USA. By contrast,

demand for travel to India and Southeast Asia rose.
The transformation of the Kuoni Group was
More than 800000 travellers were handled by
successfully completed in 2013. Withdrawal from
our Destination Management Specialists in 2013.
tour operating activities in Italy, France and
14
01_01_03
Belgium, as well as from the online platform
The Board of Directors is proposing to the AGM
Octopustravel, was completed during the
that it elects Heinz Karrer, Member of the Board
year under review. The exit from these businesses
since 2007 and Vice Chairman since 2012, as
cost less overall than originally planned.
the new Chairman of the company. The Board of

Directors would like to offer Henning Boysen
Kuoni Group now has a broad-based global portfolio
its thanks and appreciation for his many years at
of activities. The various areas of business are well
the top of the company.
balanced geographically and in terms of activities,

and are asset-light. The proportion of turnover
In June 2013 the Board of Directors appointed
accounted for by traditional Tour Operating busi-
Group Financial Officer Peter Meier ad interim
ness has decreased from 75% (in 2010) to 41% (in
Chief Executive Officer. Peter Rothwell, previously
2013). Destination & Accommodation Services now
CEO of Kuoni Group, left the company.
account for 55% and Visa Processing Services for 4%.

A sustainable and responsible approach is embedThe Board of Directors proposes shareholders to
ded in the strategy and value chain behind all
increase the dividend payout ratio. The aim is
Kuoni Groups business activities. The company
to distribute 4045% (rather than the previous
has for many years worked on numerous initia-
3035%) of net profit. Accordingly, the Board
tives and concrete projects in collaboration with
of Directors is asking shareholders at the Annual
hotels at the destinations to ensure environ-
General Meeting of 25 April 2014 to approve
mental and social standards are met. It also works
a distribution of CHF 1.50 per registered share
with non-governmental organisations to combat
A (2012: CHF 0.60) and CHF 7.50 per registered
the exploitation of people working in tourism
share B (2012: CHF 3.00) for the 2013 financial
and prevent the abuse of children. Kuoni Group was
year. This corresponds to a payout ratio of 42.3%.
awarded by a leading global rating agency in 2013
The distribution will take the form of a with
for these efforts and the Kuoni shares qualify as an
holding tax-free distribution against reserves from
environmentally and socially sound investment.
capital contributions.
The Board of Directors and the Group Executive
Henning Boysen, Member of the Board of Directors
Board would like to thank all our employees for
of Kuoni Travel Holding Ltd since 2003 and its
their invaluable work and great dedication during
Chairman since 2006, has decided not to stand for
2013. With their expertise, passion and focus
another term of office. He will therefore leave the
they have all contributed greatly to Kuonis success-
Board of Directors at the Annual General Meeting
ful transformation process as well as to the
of Shareholders on 25 April 2014.
positive results achieved in the 2013 financial year.
15
01_01_03
We would like to thank you, our valued shareholders,

for your confidence and your support. Kuoni is
today a major global travel services provider which
in recent years has continually expanded
its position in key, growth-oriented businesses.
We sucessfully handle the complexity of the
global travel eco-system to create added value for
our clients and partners. By achieving this,
Kuoni Group is able to grow its business profitably,
providing benefits to travellers, business partners,
society, its employees and shareholders.
Henning Boysen
Chairman of the Board of Directors
Peter Meier
Chief Executive Officer a.i.
This letter to the shareholders can also be found on kuoni.com and is

available for download as PDF (Quick Search Code 13102).
16
17
left

Peter Meier
Chief Executive Officer (ad interim),
Chief Financial Officer
>
CV Peter Meier P. 32
right

Henning Boysen
Chairman of the Board of Directors
>
CV Henning Boysen P. 27
18
01_02
THE
COMPANY
01_MARKET REPORT THE COMPANY
19
01_02_01
BUSINESS AREAS
KUONI IS A GLOBAL TR AVEL-RELATED SERVICE PROVIDER
Kuoni Group is engaged in three main activities: Destination

& Accommodation Services, Tour Operating and Visa Processing
Services. Kuoni pursues an asset-light strategy.
Destination & Accommodation Services include buying and
offering services as a wholesaler and supplier. As a wholesaler Kuoni
Group offers a comprehensive range of accommodation options
and destination services that it buys in itself. These are then made
>>
GROUP TRAVEL
Accounted for 16% of total turnover
in 2013.
>>
FIT
in 2013.
>>
DESTINATION MANAGEMENT
SPECIALISTS
Accounted for 7% of total turnover in 2013.
available through a worldwide online sales system to online and

offline travel agencies, tour operators and aggregators. Kuoni Group
also provides specialised modern travel services at destinations
to online and offline travel agencies and tour operators. Groups and
individual travellers are looked after at the destinations by our
own staff. Our Destination Management Specialists activities are provided through nine companies whose strong roots in the destinations
allow them to specialise in local travel services. Destination and
accommodation services are organised into the Group Travel
FIT
>
> and
(Fully Independent Traveller) and Destination Management
Specialists
> Business Units.
Tour Operating activities focus on holidays for people from the

European and Asian source markets. A wide variety of tailored,
individual and package holidays are offered to end consumers as
well as to online and offline travel agencies.
In 2013 the traditional tour operating business covered the following
>> EUROPE
In 2013, we completed the withdrawal from

tour operating activities in Italy, France
and Belgium, as well as from the online
platform Octopustravel.
markets in Europe
>: Scandinavia including Finland, Switzerland,
the United Kingdom, and Benelux. Added to this are the tour operating
activities in India and China/Hong Kong. The product portfolio
is divided into package holidays and premium individual holidays,
which are often tailored to the individual customers requirements.
Package holidays are sold in the Northern European and Swiss
markets. Individually arranged holidays are currently available in
the United Kingdom, Switzerland, India and China/Hong Kong.
20
BUSINESS AREAS
01_02_01
Distribution channels vary depending on the market and product

portfolio, but include Kuonis own travel agencies, third-party
agencies, the internet, mobile devices and call centres. Most products
(73%) in the traditional Tour Operating business are sold through
direct customer contact (B2C). Tour Operating activities in Scandinavia
> Business
Segment. The other activities are in the Outbound Europe/Asia >
and Finland are organised into the Outbound Nordic
Business Segment.
The VFS Global
> Division offers Visa Processing Services. As the
worlds leading outsourcing and technology specialist it has
>>
OUTBOUND NORDIC
in 2013.
>>
in 2013.
>>
VFS GLOBAL
Accounted for 4% of total turnover in 2013.
the corresponding experience and size to handle external, neutral

and administrative tasks associated with visa applications for
embassies and governments, as well as dealing with consular pro
cesses for them.
This chapter can also be found on

kuoni.com and is available for download
as PDF (Quick Search: 13103)
21
01_02_02
REVIEW
2013
22
01_02_02
REVIEW
2013
Kuoni Switzerland publishes

its holiday report on love and
partnership that proves:
Holidays turn Swiss people on.
January
February
Since France and the French

economy are facing increasingly
difficult circumstances creating
negative market conditions for all
tour operations, Kuoni Group
withdraws from its French tour
operating business by means of
a management buy-out.
On 7 March 2013 Kuoni Group

completed its announced
withdrawal from tour operator
activities in Italy.
March
April
Kuoni Groups transformation

results in a new Group structure:
Zubin Karkaria, CEO of VFS Global,
joins the Executive Board
responsible for VFS Global as
a new division.
In 2012, Kuoni Group has been

able to increase turnover and has
achieved the best operating
earnings before amortisation (EBITA)
for four years.
May
Kuoni Destination Management

introduces Emiratesyoo, an
online booking website with direct
customer access for the United
Arab Emirates.
Oekom Research, one of the

worlds leading rating agencies
in the field of sustainable
investments, awards the Kuoni
Group the rating C+. This puts
Kuoni in the Prime category,
which means it now qualifies as
an investment from an ecological
and social point of view.
June
July
August
September
AlliedTPro introduces
the New Thematic Travel Brand
brite spokes which targets its
own American domestic market.
October
November
December
Kuoni Travel Holding Ltd.

Sucessfully placed a six-year
bond issue with an amount of
CHF 200 million and a coupon of
1.50% in the Swiss capital
market to refinance the existing
bond of CHF 200 million of
the company.
The Board of Directors of

the Kuoni Group has appointed
CFO Peter Meier as CEO of the
Kuoni Group on an ad interim
basis. Following the decision of the
Board of Directors, Peter Rothwell,
Group CEO, leaves the company
at the end of June 2013.
Apollo becomes official supplier

of training trips and training camps
for the Swedish Olympic
Committee.
Kuoni UK presents the results

of its holiday health experiment
which for the first time
scientifically prove that holidays
are good for your health.
22
Playtas, the only hotel resort

owned by the Kuoni Group,
receives the prestigious
Travelife Gold Award, showing
its strong commitment to
sustainability.
VFS Global launches ViKi,

a self-serving smart application
system developed around an
ATM-like kiosk.
Kuoni Group completes

transformation during the first
half of 2013.
Kuoni (www.kuoni.com)
was as the winner of the
World Travel Award as the
Worlds Leading Luxury Tour
Operator 2013 at the official
ceremony on 30 November
in Doha, Qatar. Kuoni
Destination Management
(www.kuoni-dmc.com) won
the award for the Worlds
Leading Destination
Management Company for
the fourth year in a row.
01_02_03
01_02_03
KUONIS GROUP STRUCTURE
KUONIS
GROUP
STRUCTURE
HUMAN RESOURCES
GLOBAL TRAVEL
SERVICES
GROUP TRAVEL
Rolf Schafroth
FIT
GROUP IT
1
OUTBOUND
NORDIC
OUTBOUND &
SPECIALISTS
CORPORATE
COMMUNICATIONS
Stefan Leser
OUTBOUND
EUROPE/ASIA
SPECIALISTS
CEO
Peter Meier
VFS GLOBAL
Zubin Karkaria
CORPORATE & BUSINESS
DEVELOPMENT
CORPORATE
RESPONSIBILITY
FINANCE
RISK
MANAGEMENT
Peter Meier
1 Sweden Norway Denmark Finland Novair Playitas

2 Switzerland United Kingdom Benelux India Hong Kong/China
Executive Board: Peter Meier, Rolf Schafroth, Stefan Leser and Zubin Karkaria
23
24
As of 1 March 2014
25
01_02_03
KUONIS GROUP STRUCTURE
HUMAN RESOURCES
GLOBAL TRAVEL
SERVICES
GROUP TRAVEL
Rolf Schafroth
FIT
GROUP IT
1
OUTBOUND
NORDIC
OUTBOUND &
SPECIALISTS
CORPORATE
COMMUNICATIONS
Stefan Leser
OUTBOUND
EUROPE/ASIA
SPECIALISTS
CEO
Peter Meier
VFS GLOBAL
Zubin Karkaria
CORPORATE & BUSINESS
DEVELOPMENT
CORPORATE
RESPONSIBILITY
FINANCE
RISK
MANAGEMENT
Peter Meier
1 Sweden Norway Denmark Finland Novair Playitas

2 Switzerland United Kingdom Benelux India Hong Kong/China
Executive Board: Peter Meier, Rolf Schafroth, Stefan Leser and Zubin Karkaria
As of 1 March 2014
25
01_02_03
BOARD OF
DIRECTORS
26
BOARD OF DIRECTORS
01_02_03
HENNING BOYSEN
Henning Boysen has been a Member of Kuonis

Board of Directors since 2003. In 2006,
the Board elected Mr. Boysen, a Dane, to be its
chairman. After graduating with a Masters in
Economics, Henning Boysen began his career
as a management consultant at Booz, Allan &
Hamilton. In 1975 he joined SAS Service Partner
as a project manager before going on to the posts of Chief Financial
Officer and then Executive Vice President Catering. After stints as
Chief Operating Officer (COO) of Saudia Catering and President of
Aero-Chef A/S, he served as President and CEO of Gate Gourmet
Chairman of the Board of Directors of

the Kuoni-Group. Chairman of the Board
of Directors of APODAN NORDIC AS,
Copenhagen; Chairman of the Board of
Directors of Transcom Worldwide SA,
Luxembourg;Member of the Board of
Directors Flexpack AS, Copenhagen.
Henning Boysen has decided not to stand
for another term of office as Chairman
of the Board of Directors of Kuoni Travel
Holding Ltd. He is therefore leaving the
Board of Directors at the time of the AGM
of 25 April 2014.
International from 1996 to 2004, and as Deputy Chairman from 2004

to 2005. During this period as President and CEO, Gate Gourmet
grew from a medium sized European company to become a leading
global player.
HEINZ K ARRER
Heinz Karrer, who is Swiss, has been President

of Economiesuisse, the Swiss business association, since 2013. Before that he was CEO of Axpo
Holding AG from 2002. After studying economics at St. Gallen University (HSG), he began his
career in 1985 when he was appointed General
Manager of the Association of Swiss Manufactur
ers, Suppliers and Agents for Sports Goods. He went on to serve as
Managing Director of Intersport Schweiz AG from 1987 to 1992 and as
CEO of Intersport Holding AG from 1992 to 1995. He then moved to
the Ringier publishing house where he remained until 1997, becom-
President of Economiesuisse, the Swiss

business association; Chairman of the
Board of Directors of Centralschweizeri
sche Kraftwerke AG, Lucerne;
Member of the Foundation Board of the
Hasler Stiftung; Member of the Board
of Directors of Notenstein Privatbank AG,
St.Gallen.
The Board of Directors of Kuoni Travel
Holding Ltd is proposing to the Annual
General Meeting of Shareholders of
25 April 2014 that Heinz Karrer become
the companys new Chairman.
ing CEO of Ringier Switzerland and a Member of Ringier Ltd.s

Group Executive Management. From 1998 to 2002 he was a Member
of Swisscoms Group Executive Management and head of the groups
Marketing & Sales Division. He has served on Kuonis Board of
Directors since 2007. Since 2012 he is Vice-Chairman of the Board.
27
01_02_03
BOARD OF DIRECTORS
JAE HYUN (JAY) LEE
Jay Lee, a Korean citizen, has worked for eBay,
Jay Lee was elected to the Board in 2012.
the worlds biggest online marketplace,

since 2002. He is currently in charge of eBays
Asia/Pacific Region Portfolio as Managing
Director and Corporate Senior Vice President.
Previously, Jay Lee was the CEO of eBays
Korean Internet Auction Company from 2002
to 2004. From 2000 to 2002 he was COO and then CEO of NASDAQlisted multimedia company Korea Thrunet. He began his career in
1992 with Boston Consulting Group, where he was elected a partner
since 1997. Jay Lee lives in Singapore and Seoul, South Korea.
He holds an MBA from Harvard University Graduate School, Boston,
USA, and a Bachelor of Arts Degree in International Relations from
Brown University, Providence, USA.
JOHN LINDQUIST
John Lindquist, a US and UK citizen, is resident
Senior Advisor, Boston Consulting Group,

London; Member of the Board of Directors
of VisitBritain, London.
in London. He gained a degree in economics

from Princeton University and MBA from
Harvard University and then joined The Boston
Consulting Group (BCG) as a consultant.
He was subsequently elected a Partner and later
a Senior Partner and Managing Director, where
he served on the global leadership team of the travel and tourism
practice. He is currently a Senior Adviser with BCG, advising on strategy for clients in airlines, hotels, and government tourism bodies
on a global basis. He joined Kuonis Board of Directors in 2007. He is
a Board Director of VisitBritain, the UK government tourism
promotion agency.
28
BOARD OF DIRECTORS
01_02_03
ADRIANUS (ADRIAAN) NHN
The dutchman Adriaan Nhn sits on the boards

of several international consumer goods com-
Adriaan Nhn was elected to the Board

in 2012.
panies. Among his other roles, since 2009 he has

been Chairman of the Board of Directors of
Dutch food service and food retailer Sligro Food
Group. His most recent operational role was as
CEO of consumer goods company Sara Lee
International from 2003 to 2008. Adriaan Nhn lives in Amsterdam/
Netherlands. He holds a Bachelor of Business Administration from
Hogere Economische School, Eindhoven/Netherlands, and an MBA
from the University of Puget Sound, Tacoma, Washington/USA.
DAVID SCHNELL
Kuonis Board of Directors has benefited from

the great expertise and experience of Swiss
business administration graduate David Schnell
since 2002. Between 1985 and 1997 he worked
at ELCO Looser Holding AG, initially as Chief
Financial Officer (CFO) and Member of the
Executive Board, and later as Chief Operating
Business Consultant; Member of the

Board of Trustees of the Kuoni and
Hugentobler Foundation, Zurich; Chairman
of the Board of Directors of IFBC AG,
Zurich; Vice Chairman of the Board of
Directors of ELMA Electronic AG, Wetzikon;
Member of the Board of Directors of
AlpTransit Gotthard AG, Lucerne.
Officer (COO) and Member of the Board of Directors. In 1997 David

Schnell moved to become CFO and Member of the Executive Board of
telecommunications company Swisscom AG in Bern, where he
stayed until 2002. Since 2002 David Schnell has been an independent
business consultant and a Member of the Board of Directors of
various companies.
29
01_02_03
BOARD OF DIRECTORS
ANNETTE SCHMMEL
Annette Schmmel Swiss citizen is a success-
Founder, VicemChairman of the Board of

Directors and Managing Director of
arthesia AG, Zug, Los Angeles, Hong Kong.
ful entrepreneur. She studied Economics at

Ruprecht Karls University in Heidelberg, Film
at University of Southern California and
received a Masters Degree in Marketing and
Communication from University of the Arts,
Berlin. She is a Stanford Business School
Graduate. After working in various management positions in the
creative industry, she founded arthesia an applied think-tank based
in Zug, Los Angeles and Hong Kong in 1994. Annette Schmmel
has built a track record advising the leadership of global companies
and brands on strategy, transformation and change programmes as
well as longterm positioning and re-positioning in various industries.
She has built the arthesia cities business advising cities around the
world on strategies. In 2013 arthesia sold the Cities&Regions practise
to Publicis Groupe. She joined the board of Kuoni Group in 2004.
R AYMOND WEBSTER
Raymond D. Webster, who is a citizen of New
Member of the Institution of Electrical

Engineers (MIEE), London; Member of the
Board of Directors of Pegasus Airlines,
Istanbul; Member of the Advisory Board of
the Stanford Sloan Masters Programme,
California; Fellow of the Royal Aeronautical
Society (FRAeSoc), London.
Zealand and resident in the United Kingdom,

joined Kuonis Board of Directors in 2006. He
worked for easyJet airline plc. from 1996 to 2005
from 2000 as Chief Executive Officer. Before
that he was with Air New Zealand in various
functions, the last one being General Manager,
Strategic Planning. He studied engineering at Canterbury University
in New Zealand and obtained an MSc in Air Transport Engineering
from the Cranfield Institute of Technology in the UK, as well as a
Master of Business Management from Stanford Business School in
the USA.
30
01_02_03
EXECUTIVE
BOARD
31
01_02_03
EXECUTIVE BOARD
After earning a university of applied sciences degree

in business administration, Peter Meier worked for
Sulzer from 1992 in Switzerland and abroad. His roles
included Head of Finance and Controlling at the
Sulzer Chemtech and Sulzer Metco divisions. At the start
of 2007, having gained much experience as a financial
expert, he was appointed Chief Financial Officer (CFO)
of the Sulzer Group and joined the groups Executive
Board. Peter Meier is a Swiss certified accounting and
controlling expert and has an MBA from the State
University of New York. He also successfully completed
the Advanced Management Program at Wharton School
of Pennsylvania (USA). Peter Meier became CFO
and Member of the Group Executive Board of the Kuoni
Group on 1 December 2010. As of 21 June 2013 he took
over the role as Chief Executive Officer on an ad interim
basis in addition to his role as CFO.
32
CV
Peter Meier
hief Executive Officer (ad interim) / Chief Financial Officer;

C
Swiss, born in 1965.
33
34
Rolf Schafroth
E xecutive Vice President, CEO Global Travel Services Division;

Swiss, born 1965.
EXECUTIVE BOARD
01_02_03
After graduating from the university of applied sciences

(St. Gallen) with a degree in business economics,
Rolf Schafroth joined Coopers & Lybrand and went on
to serve as a management consultant in Switzerland
and the UK. Later in his consulting career he moved to
Deloitte & Touche, Switzerland, for a year before
joining Kuoni Travel Switzerland as Head of Financial
Controlling. And after just one year, in 1997, he was
appointed to Head of Finance & IT for Kuonis Strategic
Business Unit Incoming Services. In 2003 he assumed
overall responsibility for Incoming Europe, the biggest
incoming unit of the Kuoni Group, and in 2006 he was
named CEO of Destination Management, a new entity
comprising all the Kuoni Groups former incoming
units. In 2007 he was appointed to the Group Executive
Board as Head of the Strategic Business Division
Destination Management. Following a restructuring of
the Kuoni Group in 2009, Rolf Schafroth took over
additional responsibility for the newly created division
Procurement & Production for Kuoni Tour Operating,
while remaining in charge of the Kuoni Destination
Management division. Following the acquisition of
Gullivers Travel Associates (GTA) in May 2011 he is now
CEO Global Travel Services Division, which
emerged from the integration of GTA and Kuoni
Destination Management.
CV
35
01_02_03
EXECUTIVE BOARD
Having graduated in business administration,

Stefan Leser initially held a number of functions at
various companies in the German travel sector.
After completing an MBA in finance and strategic
management at Augusta State University of Georgia,
USA, he joined Atraxis AG in 1999 as Executive Vice
President Business Development, Marketing & Sales.
He later moved to EDS, going on to become CEO of
EDS Switzerland AG and Head of Sales & Distribution
for Central and Eastern Europe. He joined Kuoni in
2005 as a Member of the Group Executive Board, in the
newly created position of Executive Vice President
Corporate Development. He assumed additional
responsibility for the unit Scandinavia in 2006. In 2007
he was appointed Head of Strategic Business Division
Smart and CEO of Kuoni Switzerland. As part of the
restructuring of the Kuoni Group in 2009, Stefan Leser
was appointed Executive Vice President Southern
Region. With Kuonis updated Group structure he is the
CEO of the Outbound & Specialists Division since
March 2013.
36
CV
Stefan Leser
E xecutive Vice President, CEO Outbound & Specialists Division;

German, born 1967.
37
38
Zubin Karkaria
E xecutive Vice President, CEO VFS Global;

Indian, born 1968.
EXECUTIVE BOARD
01_02_03
After graduating in commerce from Mumbai University

and obtaining a Diploma in Business Management
from Poddar College, Mumbai, Zubin Karkaria joined
Orbit Trade Fair Tours in 1989. He then moved to
SOTC in 1991 and was with SOTC when it was acquired
by Kuoni Group in 1996. He was appointed as the COO
of the Tour Operating division in 1999 and moved on to
become the Deputy CEO and Head Business Devel
opment in 2003. He conceptualised and launched VFS
Global in 2001 and was appointed as the CEO and
Managing Director of Kuoni India and South Asia in
2005, responsible for all units of Kuoni India Tour
Operating, Destination Management, Business Travel
and Kuoni Academy, while concurrently developing
the VFS Global business into a global leader in its field.
In March 2013, in line with the development of VFS
Global as an important division of Kuoni Group, Zubin
Karkaria was appointed on the Executive Board of
Kuoni Group.
CV
39
01_02_04
THE KUONI
WORLD MAP
Kuonis head office is located in Zurich, Switzer-
at the destinations; offices dedicated to buying in
land, where Alfred Kuoni founded the company in
and selling online-based destination services; and
1906. Today Kuoni has operations in more than
offices specialising in MICE business (meetings,
100 countries on five continents, now employing
incentives, conferences and events). Visa service
around 12000 people. In its European source
provider VFS Global runs a worldwide business
markets the company has more than 120 of its own
through more than 1100 Visa Application Centres
retail stores and tour operating offices. Its global
spread across every continent. Overall, counting
Destination & Accomodation Services business
all business activities, Kuoni has more than 400 sepa-
has several different types of office: sales offices
rate office locations in about 100 countries around
in the source markets, particularly in Asia for group
the world.
travel business; agency offices that look after guests

40
HQ
KUONIGROUP
ZURICH
OFFICE
HEADQUARTER
01_03
BUSINESS
41
42
TURNOVER OVER FIVE YEARS (MILLION CHF)
3.0%
EBITA (CHF)
MILLION
EBIT (CHF)
MILLION
5669
191.4
154.2
SOURCE MARKET
5%
Middle East /
Africa
7 000
5 845
6 000
5 669
5 111
5 000
4 000
MILLION
TURNOVER (CHF)
Organic turnover growth
3 894
30%
Asia / Pacific
3 984
58%
Europe
3 000
2 000
1 000
3%
Central and
South America
0
2009
2010
2011
2012
2013
EBIT AND GROUP RESULT OVER FIVE YEARS (MILLION CHF)
DESTINATION MIX
10%
Middle East /
Africa
200
154.2
150
100
50
0
50
74.2
15.1
1.6
2009
EBIT
4%
North America
Group result
58.4
23.2
33.3
2010
2011
51.1
14.4
69.2
2012
2013
20%
Asia / Pacific
56%
Europe
4%
Central and
South America
10%
North America
Kuoni-Group
KUONI GROUP
KUONI GROUP
WORLD TRAVEL AWARD
SOCIAL MEDIA
Worlds Leading
Luxury Tour Operator 2013 /
Worlds Leading
Company 2013
Twitter Follower
(All Kuoni brands worldwide,
as at 1 March 2014)
EMPLOYEES
Full time employees
(As at 31 December 2013)
Kuoni employs people

from over 104 nationalities
KUONI GROUP REPORT
01_03_01
KUONI GROUP REPORTS SIGNIFICANTLY HIGHER EBIT
The Kuoni Group achieved organic topline growth of 2.0% in the 2013
financial year. Earnings before interest and taxes (EBIT), net result
and free cash flow all increased significantly. The market environment
This chapter can also be found on

kuoni.com and is available for download
as PDF (Quick Search 13104)
was fragmented in 2013: on the one hand strong growth continued,

especially in Asia; on the other, the economic situation hit demand in
many European source markets. Kuoni Groups turnover for the year
under review came to CHF5669million, representing a nominal
year-on-year decline of 3.0%. This is due mainly to the withdrawal
from loss-making European tour operating activities. The net effect
of acquisitions/disposals contributed 4.6% to the decline. The organic
rise in turnover came to 2.0%, driven by continuous strong growth
in the FIT (Fully Independent Traveller) and VFS Global Business segments, as well as organic growth in the remaining Outbound Europe/
Asia operations. Operating earnings before amortisation (EBITA)
came to CHF191.4million (2012: CHF 117.7 million). Operating
earnings (EBIT) came to CHF154.2million (2012: CHF 51.7 million).
The net result came to CHF69.2million (2012: CHF 14.4 million).
I NTERNATIONAL TOURISM GROWS DESPITE

ECONOMIC UNCERTAINTY
The economic environment
> recovered slightly over the course
of the second half of 2013, driven by increasing demand in developed

markets and higher exports from emerging nations. However, except
in China, domestic demand remained subdued. The fiscal situation improved slightly in developed markets. The Eurozone debt crisis eased
and risk premiums on government debt decreased. The situation
in emerging economies remained tense and some currencies weakened significantly against the US dollar and the euro.
01_MARKET REPORT BUSINESS
>>
ECONOMIC ENVIRONMENT
The International Monetary Fund (IMF)
forecasts that the global economy would
grow by 3.0% in 2013 (Source: IMF World
Economic Outlook Update, January 2014).
This represents a fall of 0.1 percentage
points in global economic expansion com
pared with the previous year. Emerging
economies were once again the main
engines of growth (China 7.7%, India 4.4%,
Brazil 2.3%). In developed markets there
was a slight recovery compared with
the prior year (USA 1.9%, Switzerland 1.8%,
UK 1.7%, Eurozone 0.4%).
45
01_03_01
KUONI GROUP REPORT
The economies of Kuoni Groups source markets performed modestly

in 2013. In many of the major European markets, economic growth
stagnated. Among the most important source markets, the economic
situation improved in Japan, the UK and India, while Switzerland
continued to perform robustly. Taken together, economic growth in
the ten most important source markets decreased from 1.5% in 2012
to 1.4% during the year under review (basis of data: IMF World
Economic Outlook, October 2013).
International tourism
The World Tourism Organization

(UNWTO) reported the following
growth rates in international arrivals
per region in 2013 (source:
UNWTO, World Tourism Barometer,
January 2014):
Organization (UNWTO) reported healthy 5% growth in interna-
Europe:
Asia/Pacific:
Americas:
Africa:
The Middle East:
Worldwide:
46
> performed well overall. The World Tourism
>>INTERNATIONAL TOURISM
+6%
+6%
+4%
+6%
0%
+5%
tional arrivals, so the growth trend continues. There was particularly

good news from countries in Europe and the Asia/Pacific region,
with growth of 6% each. The effects of the debt crisis in Europe and continuing political turmoil in North Africa and the Middle East had
less of an influence in 2013 than in the prior year. Social and political
unrest in Turkey, Brazil and Thailand also had a negative effect on
various business activities over the short and medium term.
KUONI GROUP REPORT
01_03_01
KUONI GROUP ACHIEVES ORGANIC TOP-LINE GROWTH
Kuoni Group achieved lower turnover in 2013 than in the previous

year. This because of the withdrawal from loss-making European tour
operating activities
> in Italy, France and Belgium, as well as from the
online platform Octopustravel. Performances varied between the

different regions and business activities. Strong organic growth was
reported for business in the FIT (Fully Independent Traveller)
business segment, the remaining activities
> in the Outbound Europe/
Asia business segment and the VFS Global business segment. The
Outbound Nordic and Destination Management Specialists business
segments recorded lower organic turnover than in 2012.
During 2013 Kuoni Group increased its stake in Desert Adventures
>> WITHDRAWAL FROM LOSS-
MAKING EUROPEAN TOUR OPERATING

ACTIVITIES
The Kuoni Groups tour operating activities in Italy were sold to The RS Holding
R.s.l., a company owned by Alessandro
Rosso (28 February 2013). Kuonis tour
operating activities in France were sold to
local management (31 March 2013). The
closures of the tour operating business in
Belgium and the Octopustravel.com online
platform were also completed during
the first half of 2013. Reported cumulative
turnover from all sold and closed units
came to CHF 59 million.
Tourism LLC, Dubai, from 80% to 100%. As part of the withdrawal

from loss-making European tour operating activities, several companies were sold, i. e. the tour operating activities in Italy and France.
In addition, the tour operating business in Belgium and the Octopustravel.com online platform were closed during the first half of 2013.
The disposal effect of these sales on consolidated turnover for 2013
came to CHF 269 million, or 4.6%.
>> REMAINING ACTIVITIES
(OUTBOUND EUROPE/ASIA)
Tour operating activities in Switzerland, the
UK, Benelux Specialists, India and China/
Hong Kong.
The effect of translating currencies into the reporting currency

was relatively small, decreasing the volume of turnover in 2013 by
CHF 24 million, or 0.4%.
Consolidated turnover for the year under review came to
CHF5669million. This represents a nominal decline of 3.0% on the
previous year. Organic growth, i. e. after excluding the divested
companies and currency effects, stood at 2.0% (prior year: 3.7%).
47
01_03_01
KUONI GROUP REPORT
GROUP TURNOVER OF
CHF 5669 MILLION BY ACTIVITY
4%
Visa Processing
Services
41%
Tour Operating
55%
Destination &
Accommodation
Services
GROUP TURNOVER OF
CHF 5669 MILLION BY SEGMENT
7%
Specialists
4%
VFS Global
16%
Group Travel
24%
Outbound
Europe / Asia
32%
FIT
17%
Outbound
Nordic
The Kuoni Group has evolved into a global provider of travel-related

services and to one of the leading companies in the following
activities: Destination & Accommodation Services (55% of turnover),
tour operating (41%) and Visa Processing Services (4%). The contri
bution of Destination & Accommodation Services to overall turnover
went up during the year under review from 52% to 55%. This is due
on the one hand to the strong organic growth posted by the FIT
business segment, and on the other to the reduction in turnover from
some Western and Southern European markets in the Outbound
48
KUONI GROUP REPORT
01_03_01
Europe/Asia business segment, which itself was partly a result of the

withdrawal from loss-making European tour operating activities.
Overall Kuoni Groups portfolio remains broadly diversified with
good growth prospects.
2000
1 703 1 802
1500
1000
TURNOVER BY SEGMENTS
(CHF MILLION)
1 738
1 414
2013
2012
993 982
964 943
500
400 417
0
Group
Travel
FIT
Outbound
Nordic
Outbound
Europe / Asia
Destination
Management
Specialists
205 244
VFS
Global
The organic growth in turnover in the 2013 financial year was largely
driven by the FIT business segment. The main growth drivers were
source markets in Asia/Pacific, the Middle East, Africa and Northern
and Central Europe. VFS Global and the remaining activities in the
Outbound Europe/Asia business segment also contributed to organic
growth. Owing to the disposal of loss-making European tour operating activities, the Outbound Europe/Asia business segment generated
lower turnover than in 2012. Outbound Nordic generated lower
turnover owing to the difficult economic situation.
49
01_03_01
KUONI GROUP REPORT
>>
GROUP TRAVEL
The segment generated turnover of
CHF 943 million in 2013 (2012: CHF 964 million). Organic growth came to 0.1%.
>>
PENSION FUND EFFECTS

The Swiss pension fund changed from a
service-oriented plan to a defined contributions benefits system on 1 January 2014.
In accordance with the applicable IFRS
rules, non-recurring, non-cash exceptional
effects for the pension fund change and
a curtailment, on the basis of a considerable reduction in the number of Swiss
employees affected by the plan of in total
CHF 41.3 million, was reported for 2013.
This had a positive impact on operating
earnings (EBIT). The change affects all
business areas with employees in
Switzerland (Group Travel CHF 3.6 million,
FIT CHF 1.5 million, Outbound Europe/Asia
CHF 28.5 million, Corporate CHF 7.7 million).
GROUP TR AVEL
Turnover for the Group Travel
> business segment was down 2.2%
at CHF943million in 2013 (2012: CHF 964 million). Having deliberately focused on higher gross profit margins, it was expected that
higher earnings (EBIT) would come at the cost of lower growth in
turnover. At the same time, the internal reorganisation that relocated
MICE (meetings, incentives, conferences, events) in the USA and
Middle East to the Destination Management Specialists business
segment led to an effect of CHF 34.6 million (3.6%). Organic
turnover growth came to 0.1%. The trading was particularly good in
the Japanese and Chinese markets during the summer season,
leading to an increase in operating earnings before amortisation
(EBITA) of 23.5% to CHF26.8million (2012: CHF 21.7 million).
Earnings before interest and taxes (EBIT) improved by 32.0% to
CHF22.3million. Excluding the positive pension fund effects
> EBIT
came to CHF 18.7 million.

1% 3%
North America Asia / Pacific
11%
Europe
GROUP TRAVEL TURNOVER

SHARE BY SOURCE MARKETS AND
DESTINATIONS
5%
North America
1%
Central and
South America
Source
Market
83%
Asia /
Pacific
Destinations
96%
Europe
Accounting for 83% of its turnover, the Asia/Pacific region was by far
the most important source market for the Group Travel business
segment. This share is six percentage points up on the previous year.
Most group travellers came from Japan, China and Indonesia,
while Europe, with 11%, was the second most important source market
(2012: 14%). The highest numbers of overnight stays by group travellers were recorded for destinations in France, Italy, Germany, the UK
50
KUONI GROUP REPORT
01_03_01
and Switzerland. Europe, with 96%, is by far the most important

holiday destination.
FIT (FULLY INDEPENDENT TR AVELLER)
Turnover at the FIT
> business segment rose to CHF1802million
in 2013 (2012: CHF 1703 million). This 5.8% increase included
>> FIT
FIT Segement posted turnover of

CHF 1802 million (2012: CHF 1703 million).
Organic growth came to 5.7%
organic growth of 5.7% and a 0.1% currency influence. Earnings

before amortisation (EBITA) came to CHF74.5million (2012:
CHF 68.4 million). EBIT improved by 12.1% to CHF53.0million (2012:
CHF 47.3 million). After adjusting for the positive pension fund
effects EBIT came to CHF 51.5 million. The main growth drivers were
source markets in Asia/Pacific, the Middle East, Africa and Northern
and Central Europe.
FIT TURNOVER SHARE BY SOURCE

MARKETS AND DESTINATIONS
9%
Middle East /
Africa
14%
Middle East /
Africa
41%
Europe
Source
Market
29%
Asia /
Pacific
9%
7%
North America
Central and
South America
18%
Asia /
Pacific
2%
Central and
South America
Destinations
51%
Europe
20%
North America
Europe, with 41% of turnover, was the most important source market
for the FIT business segment (2012: 40%). The fall in the value of the
yen led to lower demand from Japanese customers for overnight stays
in Europe and the USA. However, destinations within Asia profited
from this. The breakdown of turnover by destination remained more
or less unchanged. Europe, with 51%, is still the most important
holiday destination (2012: 52%). The top travel destinations were the
USA, France, the UK and Italy.
51
01_03_01
KUONI GROUP REPORT
>> OUTBOUND NORDIC
Outbound Nordic, with its Sweden, Norway,

Denmark and Finland units, airline Novair
and the sports and family resort Playitas on
Fuerteventura (Spain), generated turnover
of CHF 982 million (2012: CHF 993 million).
Organic growth compared with the prior
year was 1.9%.
OUTBOUND NORDIC
Turnover at the Outbound Nordic
> business segment came to
CHF982million (2012: CHF 993 million). The decline of 1.1%

is mainly due to the travel freeze to Egypt as of the second half
of 2013. It was possible to divert some demand to the Greek archipelago
and the Canary Islands. In addition, flight overcapacities resulted in
lower average prices. Organic top-line growth at the Outbound Nordic
business segment came to 1.9% while currency influences came
to 0.8%. Operating earnings before amortisation (EBITA) were slightly
lower at CHF37.8million (2012: CHF 40.6 million). This was due to
the negative effects on the Sweden unit of the suspension of travel to
Egypt, as well as overcapacities and lower average prices in Norway.
By contrast, Denmark benefited from a focus on higher margins and
a reduction in operating costs. The Playitas sports and family resort
on Fuerteventura (Spain) benefited from the suspension of travel to
Egypt and increased flight capacity from Europe. EBIT at Outbound
Nordic was 6.8% below the prior year level at CHF36.8million
(2012: CHF 39.5 million).
OUTBOUND NORDIC TURNOVER

DESTINATIONS
6%
Asia / Pacific
8%
Middle East /
Africa
4%
Central and
South America
Source
Market
Destinations
100%
Europe
52
82%
Europe
KUONI GROUP REPORT
01_03_01
The business segments two biggest source markets are Norway

and Sweden, which together account for 75% of turnover. Finland grew
by 40% year-on-year reflecting its excellent performance since
launching in 2011. With more than 80% of total turnover, Europe
remains the most important holiday destination for the Outbound Nordic business segment. Top destinations include Spain,
Greece and Turkey. The most important destinations outside
Europe are Egypt and Thailand, though their share of total turnover
has fallen sharply since 2012.
The central development for the Outbound Europe/Asia
> business
segment in 2013 was the completion of withdrawal from loss-making

European tour operating activities. Kuonis exit from the tour
operating business in Italy, France and Belgium, as well as from the
online platform Octopustravel, was completed during the first
half of the year. The CHF 3.1 million of operating losses sustained in
>>
Outbound Europe/Asia, with its Switzerland,
UK, BeneIux Specialists, India and China/
Hong Kong units, achieved turnover of
Organic growth compared with the prior
year was 1.7%.
2013 were charged against operating earnings (EBIT). Financial

expense was exacerbated by losses of CHF 44.5 million from the sale
of subsidiary companies. The total effect on the net result amounted
to CHF 47.6 million, which is lower than the original budgeted figure
of CHF 56 million. Owing to this withdrawal from loss-making
activities, turnover declined from CHF 1738 million in the prior year
to CHF1414million in 2013. Organic turnover growth was 1.7%
and the disposal effect reduced turnover by 15.6%. Currency in
fluence amounted to 1.3%. The remaining units performed positively
and achieved good organic growth of 4.4%. The Switzerland
and China/Hong Kong units in particular posted higher turnover.
Operating earnings before amortisation (EBITA) improved by 201.2%
to CHF34.1million at end of 2013 (2012: 33.7 million). Operating
earnings (EBIT) improved significantly to CHF27.8million, compared with a loss of CHF 69.1 million in 2012. This result came on
the back of a positive performance in the Switzerland unit, the
effects of the withdrawal from loss-making European tour operating
activities, and the one-time positive effects of the change in plan of
53
01_03_01
KUONI GROUP REPORT
the Swiss pension fund from a service-oriented plan to a defined contributions benefits system and a curtailment on the basis of a considerable reduction in the number of Swiss employees affected by the plan.
After adjusting for the positive one-time pension fund effects,
EBIT came to CHF 0.7 million, including CHF 3.1 million from
discontinued activities.
TURNOVER SHARE BY SOURCE
MARKETS AND DESTINATIONS
11%
Middle East /
Africa
20%
Asia /
Pacific
37%
Europe
Source
Market
34%
Asia / Pacific
80%
Europe
Destinations
9%
North
America
9%
Central and
South America
As in 2012, 80% of theturnover came from European source markets,

and the other 20% from the source markets of the Asia/Pacific region.
Switzerland, the UK, India and Hong Kong are the most important
source markets. The Destination Europe gained an additional five percentage points compared to 2012 to achieve a share of 37% of the
turnover. Asia/Pacific was accounting for 34% of turnover. Despite the
continuing difficult situation, the Middle East/Africa as a holiday
destination maintained its share of turnover at 11% (2012: 11%).
The most important destinations were the USA, the Maldives, India
and Spain.
54
KUONI GROUP REPORT
01_03_01
DESTINATION MANAGEMENT SPECIALISTS
The Destination Management Specialists
> business segment gen
erated turnover of CHF417million in 2013 (2012: CHF 400 million).

This increase included an acquisition effect of 8.7% and organic
top-line growth of 0.0%. Negative currency influences of 4.4%
reduced turnover once again. The positive acquisition effect of
>>
SPECIALISTS
The Destination Management Specialists
in the USA, the Middle East, India,
Africa and Asia/Pacific achieved turnover
of CHF 417 million (2012: CHF 400 million).
CHF 34.6 million (8.6%) came from the internal reorganisation that
relocated MICE (meetings, incentives, conferences, events) in the
USA and Middle East from the Group Travel business segment to the
Destination Management Specialists business segment. Owing to
its size, the acquisition of Royal Tours Namibia on 1 June 2012 is of
minor importance. Earnings before amortisation (EBITA) fell from
CHF 12.3 million in 2012 to CHF6.4million in 2013. The European
economic crisis, particularly in the source markets of Southern
Europe, had a significant negative impact on growth and earnings. In
addition, the Russian market turned out to be highly competitive.
This hurt our Destination Management Specialists in the Middle East
(Desert Adventures Tourism/Gulf Dunes) and the USA (AlliedTPro).
In addition, terrorist attacks in Kenya and the civil war in Syria led to
a fall in demand in the Middle East and East Africa. Asia/Pacific
(Asian Trails/Australian Tours Management) were affected by greater
competition and the lower margins this entailed. Kuonis destination
management specialists in India (Sita/Distant Frontiers) posted
positive growth. The fall in the value of the Indian rupee made India
an attractive destination, especially for European travellers. Operating earnings (EBIT) came to CHF2.5million (2012: CHF 8.7 million).
55
01_03_01
SPECIALISTS TURNOVER
SHARE BY SOURCE MARKETS
AND DESTINATIONS
KUONI GROUP REPORT
5%
Centraland
South
America
9%
North
America
10%
Asia /
Pacific
7%
Middle East /
Africa
16%
North America
43%
Middle East /
Africa
Source
Market
Destinations
69%
Europe
41%
Asia / Pacific
Europe, with 69% of turnover, was the most important source market
for the Destination Management Specialists business segment.
Russia and Germany were the most important countries in Europe,
though they saw their share fall slightly compared with 2012.
India profited from the rising demand caused by the weaker rupee.
Destinations in the Middle East/Africa and Asia/Pacific were the
most important to the Destination Management Specialists business
segment, with a share of turnover exceeding 80%. The United Arab
Emirates lost three percentage points compared with the previous year,
but it was still the most important national destination in the
Destination Management Specialists business segment accounting
for 31% of turnover.
>> VFS GLOBAL
VFS Global achieved turnover of

Organic growth came to 23.6%.
VFS GLOBAL
Visa services provider VFS Global
> generated turnover of
CHF244million in 2013. This represents nominal year-on-year growth

of 19.0%, a very positive result which can be attributed to a
strong increase in the number of visa applications processed. A total
of 18 million applications were processed in 2013. In 2012 the figure
was 15 million. Organic turnover growth came to 23.6%. With many
emerging economies seeing their currencies weaken, negative
currency effects came to 4.6%. Operating earnings (EBIT) came to
CHF40.2million, up 13.2% on the prior year (2012: CHF 35.5 million).
56
KUONI GROUP REPORT
01_03_01
Political upheavals delayed the opening of several application centres.

In 2012 VFS Global won the major contract to provide visa services for
the Kingdom of Saudi Arabia. The joint venture with a local partner
is the biggest contract won by VFS Global so far in terms of both order
volume and scope of services.
9%
Middle East /
Africa
Source
Market
7%
Middle East /
Africa
19%
Europe
2%
Centraland South
America
VFS GLOBAL TURNOVER

DESTINATIONS
16%
Asia /
Pacific
Destinations
17%
North
America
60%
Europe
70%
Asia / Pacific
The most important source market for VFS Global is Asia/Pacific,

accounting for 70% of turnover (2012: 72%). At 19%, the second most
important source market is Europe. Its share of turnover has improved by one percentage point on the previous year. Russia and the
UK are the most important source markets in this region. Europe,
with 60%, is the most important holiday destination, with the UK
generating the highest turnover in the region. Other top destinations
for VFS Global are the USA, India and Spain. The destinations Europe
and the Middle East/Africa increased their share of turnover by one
percentage point year-on-year. Meanwhile, Asia/Pacific dropped three
percentage points to 16% of total turnover. This is mainly because
of a slight fall in the share of turnover generated by destinations in
India. North Americas share remained at 17%.
57
01_03_01
KUONI GROUP REPORT
K UONI GROUP INCREASES GROSS PROFIT GROSS PROFIT

MARGIN SLIGHTLY HIGHER THAN IN PREVIOUS YEAR
In 2013 Kuoni Group recorded gross profit of CHF1106million.

By focusing on higher margins it achieved this 0.3% increase on the
previous year despite lower turnover. Organic gross profit growth
came to 4.6% and currency influences to 0.8%. The acquisition/
disposal effect amounted to 3.5%.
GROSS PROFIT BY SEGMENT
(CHFMILLION)
2013
2012
350
319
300
280
250
214 224
200
150
170 166
184 188
154
178
100
61
50
69
0
Group
Travel
FIT
Outbound
Nordic
Outbound
Europe / Asia
Destination
Management
Specialists
VFS
Global
The Kuoni Group achieved a gross profit margin of 19.5% in 2013 (2012:
18.9%). This increase was due to a focus on higher margins and the
positive effects of the disposal of loss-making European tour operating
activities.
The Group Travel business segment was able to keep its gross profit
margin practically unchanged at 17.6%. At 12.4%, the margin in the FIT
business segment was also very close to the previous years level (2012:
12.6%). For structural reasons, FITs highly automated volume business
generated lower margins than traditional tour operating activities.
In the Outbound Nordic business segment, the gross profit margin was
raised from 18.5% in 2012 to 19.2%. The Denmark unit increased
its gross profit margin by ending travel services for individuals and
avoiding cost-intensive flight risks on long-haul routes. Despite
the challenging competitive environment, the holiday airline Novair
58
KUONI GROUP REPORT
01_03_01
improved its gross profit margin. The units in Sweden, Norway and
Finland suffered a slight decline in a challenging market environment,
with all providers offering more services and average prices lower
than in 2012. The remaining activities in the Outbound Europe/Asia
business segment achieved an unchanged gross profit margin.
However, the positive effects of the withdrawal from loss-making tour
operating activities in Europe led to a distinct improvement in margins in the Outbound Europe/Asia business segment. The margin for
2013 was 19.8% (2012: 18.3%). Destination Management Specialists
raised their gross profit margin from 15.3% in 2012 to 16.6% im 2013.
VFS Global operated with a margin of 73.1% slightly below 2012's
75.3%. However, thanks to the high level of the gross profit margin, the
business segment made an equally strong contribution to the positive
trend in Kuoni Groups gross profit margin.
I NCREASED OPER ATING EARNINGS BEFORE AMORTISATION

(EBITA) COMPLETION OF PORTFOLIO STREAMLINING
BOOSTS EBIT
Kuoni Group increased its earnings before amortisation (EBITA)
> to
CHF191.4million (2012: CHF 117.7 million). The improvement compared with the previous year was based on organic turnover growth, the
effect of the withdrawal from loss-making European tour operating
activities and the one-time positive pension fund effects. The effect of
the exit from loss-making European tour operating activities was
>> EBITA
If costs associated with the withdrawal

from loss-making European tour operating
activities and the one-time positive
pension fund effects are excluded, EBITA
came to CHF 153.1 million.
CHF 3.0 million, which is a 72.3% improvement on the previous year.

The change in plan of the Swiss pension fund from a service-oriented
plan to a defined contributions benefits system and a curtailment on
the basis of a considerable reduction in the number of Swiss employees
affected by the plan, added in total CHF 41.3 million to EBIT.
59
01_03_01
>> EMPLOYEES
Headcount at end-2013 (FTE) was 11478

(end 2012: 12090).
KUONI GROUP REPORT
The average number of employees
> (FTE) fell by 5.4% during the
year under review to 11621 (2011: 12279).

Kuoni Groups operating earnings (EBIT) came to CHF154.2million
(2012: CHF 51.7 million). If the cost of withdrawing from loss-making
tour operating activities in Europe and the effects from the change
in plan of the Swiss pension fund and the curtailment are excluded,
operating earnings (EBIT) amounted to CHF 116.0 million.
DEVIATION EARNINGS BEFORE

INTEREST AND TAXES (EBIT) VERSUS
PRIOR YEAR (CHF MILLION)
250
200
+46.5
150
+32.2
100
50
53.4
+39.0
116.0
3.1
[5]
[6]
+41.3
154.2
[7]
EBIT 2013
as reported
51.7
0
EBIT 2012
as reported
[1]
[2]
[3]
[4]
1 One-off costs related to exit from loss-making European tour operator activities in 2012
2 Net impact on gross profit and operating costs from exit from loss-making European
tour operator activities in 2012
3 Impact of gross profit development
4 Impact of increase in operating costs
5 EBIT 2013 excluding effects from one-off costs for exit from loss-making European
tour operator activities and pension plan change and curtailment
6 Impact of exit of European tour operator activities in 2013
7 One-time positive effects from pension fund plan change and curtailment in Switzerland
Most business segments made a positive contribution to earnings

(EBIT) during the year under review. Group Travel benefited from
particularly good trading in the Japanese and Chinese markets
during the summer season. The FIT business segment increased its
contribution to earnings thanks mainly to higher turnover.
Outbound Europe/Asia profited from the elimination of operating
losses following the discontinuation of tour operating activities
in Italy, France and Belgium, and the closure of the online platform
Octopustravel. The remaining activities benefited in particular
from higher turnover and improved earnings in the Switzerland unit.
VFS Global increased its EBIT thanks to a sharp rise in the number of
visa applications processed. By contrast, Outbound Nordic was unable
60
KUONI GROUP REPORT
01_03_01
to match the prior years level and saw EBIT fall slightly owing to
lower average prices and greater pressure on gross profit margins.
The Destination Management Specialists achieved lower EBIT.
Earnings suffered as a result of the European economic crisis, terror
attacks in Kenya and the Syrian civil war. Greater competition also
had a negative effect on margins at the Asia/Pacific business segment.
The general increase in employee costs put further pressure on
earnings.
BREAKDOWN OF EBIT BY
SEGMENT (CHF MILLION)
100
47.3 53.0
50
25
0
39.5 36.8
35.5 40.2
27.8
16.9 22.3
8.7
2013
2012
2.5
25
50
75
69.1
100
Group
Travel
FIT
Outbound
Nordic
Outbound
Europe / Asia
Destination
Management
Specialists
VFS
Global
S IGNIFICANT RISE IN NET RESULT THANKS TO

STREAMLINED PORTFOLIO
The net result came to CHF69.2million (2012: CHF 14.4 million).

The sharp increase on the prior year is due to the withdrawal from
loss-making European tour operating activities, the positive
pension fund effects and, especially, the positive organic growth
posted by Kuoni Group. Excluding the effects of discontinuing
loss-making European tour operating activities (CHF 47.6 million),
and the pension fund effects (CHF 32.5 million), the net result
would have been CHF 84.3 million. Taxes were higher owing to the
increase in EBIT.
61
01_03_01
KUONI GROUP REPORT
Kuoni Group posted a financial result of CHF52.0million

for 2013 (2012: CHF 45.6 million). One-time costs associated with
the withdrawal from loss-making tour operating activities in
Italy and France knocked CHF 44.5 million off the financial result.
With interest rates still low, interest expense was slightly down
on the prior year in absolute terms. Interest income was up slightly.
2013
as reported
Effects from the

change in plan of
the Swiss pension
fund and a
curtailment
Effects from
withdrawal of
loss-making
European tour
operator activities
2013 without
effects of
withdrawal from
European tour
operator activities
and Swiss pension
fund change and
curtailment
EBITA
Amortisation/Impairment
191.4
37.2
41.3
0.0
3.0
0.1
153.1
37.1
EBIT
Financial Result
Income Taxes
154.2
52.0
32.9
41.3
0.0
8.8
3.1
44.5
0.0
116.0
7.5
24.1
69.2
32.5
47.6
84.3
Effects from withdrawal of loss-making European tour

operator activities and change in plan of the Swiss
pension fund and a curtailment on income statement
(CHF million)
Net Result
Tax expense stood at CHF32.9million (2012: CHF 20.5 million).

This increase was due mainly to the higher operating earnings (EBIT).
The average weighted tax rate for the year under review was higher
than the long-term figure, because pre-tax profit was heavily affected
by exceptional charges which were not tax deductible.
62
KUONI GROUP REPORT
01_03_01
Net result per registered share B amounted to CHF 17.77 (2012:

CHF 4.19). At the Annual General Meeting of Shareholders on
25 April 2014, the Board of Directors is proposing that the 2013
dividend be paid, as in the prior year, in the form of a withholding
tax-free distribution against reserves from capital contributions.
The level of the proposed distribution is based on the net result. The
Board of Directors proposes to increase the payout ratio as the
transformation of the Kuoni Group is completed. Organic growth
can be financed with the operational business. Future payout ratio
shall amount to 4045% of the net result.
EARNINGS PER REGISTERED

SHARE B (CHF)
40
30
17.8
20
10
0
7.4
9.2
2010
2011
0.1
10
4.2
2009
2012
2013
The Board of Directors is therefore recommending to the AGM

that it approves a distribution of CHF 1.50 per registered share A and
CHF 7.50 per registered share B (2012: CHF 0.60/CHF 3.00).
This corresponds to a payout ratio of 42.3%
Comprehensive income came to CHF87.8million (2012:
CHF 31.4 million). This positive result was due to the sharp year-onyear increase in the net result, plus gains from cash flow hedges of
CHF 9.6 million. Actuarial gains or losses contributed CHF 11 million,
while currency translation differences reduced comprehensive
income by CHF 2.3 million.
The statement of comprehensive income

includes the net result and all further
value adjustments which are not shown
on the income statement under IFRS
provisions. These include market-value
adjustments to financial instruments
(CHF 10 million). The effect comes from
derivative financial instruments which
are not yet due. These are used to hedge
the currency risk of the operational business. Actuarial gains or losses amounted
to CHF 11 million and currency translation
differences to CHF 2.3 million. The most
significant currency translation differences
derived from translations of the balance
sheets of Kuoni Group subsidiaries reporting in GBP, EUR and SEK, of USD-denominated intra-group loans of an equity nature
to subsidiaries with other functional
currencies.
63
01_03_01
KUONI GROUP REPORT
FREE CASHFLOW INCREASED TO CHF124.6MILLION
Cash flow from operating activities came to CHF 160.4 million (2012:
CHF 106.4 million). EBIT improved by 198.2% or CHF 102.5 million
respectively. Net working capital increased by CHF 13.0 million
(compared with an increase in 2012 of CHF 33.7 million) mainly due
to higher customer receivables.
Cash flow from investing activities came to CHF 83.3 million (2012:
CHF +13.0 million). Sales of subsidiaries accounted for a large part
CHF 34.7 million of the outflow. The cash effect of sales of subsidia
ries relates to the withdrawal from loss-making tour operating
activities. During the year under review, capital expenditure on
tangible fixed assets and intangibles amounted to CHF 46.1 million
(2012: CHF 58.4 million), which was slightly below depreciation
(CHF 48 million). CHF 26.6 million of the capital expenditure was on
tangible fixed assets. Investments were made in the expansion of VFS
Globals business and building up the branch network in the United
Kingdom. CHF 19.5 million was invested in intangible assets, mainly
IT. Among other things, FIT integrated a new platform with enhanced
XML capabilities. This allows hotels to adjust their room availabilities
on the GTA database on an ongoing basis to match supply and demand.
The Group Travel business segment invested in a new reservation
and order processing system.
Cash flow from financing activities came to CHF 35.8 million
(2012: CHF 98.3 million). CHF 8.0 million was due to Kuoni
increasing its stake in Desert Adventures Tourism LLC, Dubai, from
80% to 100%. During the year under review financial debts were
reduced by CHF 3.3 million and interest of CHF 11.3 million was paid.
In addition, CHF 11.5 million was distributed to shareholders in
Kuoni Travel Holding Ltd.
64
KUONI GROUP REPORT
01_03_01
Free cashflow improved in the year under review from

CHF 63.5 million to CHF124.6million.
The net increase in cash and cash equivalents came to
CHF 23.9 million in the year under review (2012: net increase
of CHF 32.4 million).
IMPROVED EQUITY R ATIO OF 32.6%
Total assets were virtually unchanged to prior year at CHF2393million

in the year under review (0.4%). This was mainly due to higher
accounts receivable and cash and cash equivalents. Due to seasonal
conditions total assets fluctuated relatively strong during the year.
The net carrying value of goodwill went down by CHF 6 million
to CHF 915 million. This is due mainly to the withdrawal from loss-
making European tour operating activities.
Kuoni Groups equity stood at CHF779million at end-2013 (2012:
CHF 699 million), giving an equity ratio of 32.6%. This increase
was mainly driven by the net result of CHF69.2million, actuarial
gains or losses of CHF 11 million and realised gains and losses
from financial instruments of CHF 10 million.
A CHF 200 million issue of a 1.50% 6-year bond was successfully
placed on 28 October 2013. The proceeds of the issue were used to
refinance the existing CHF 200 million bond, which fell due on
28 October 2013. As a consequence, current liabilities decreased and
non-current liabilities increased compared to previous year.
65
01_03_01
KUONI GROUP REPORT
KEP is calculated from net operating profit

after tax (NOPAT) less the cost of capital
invested in operations. Group-level capital
costs have been set at a sustainable rate
weighted average cost of capital (WACC)
of 7.5%.
K UONI ECONOMIC PROFIT UP SIGNIFICANTLY THANKS

TO GREATER OPER ATING EARNINGS POWER
The Kuoni Groups value-focused management style aims to keep

management of the company aligned to long-term value creation.
The central management performance indicator here is Kuoni
Economic Profit or KEP.
Kuoni Economic Profit improved during the year under review
from CHF 56.6 million to CHF52.1million. This increase was mainly
due to the improvement in EBIT and operating earnings power. In
addition, the cost of capital (WACC) was adjusted from 8.5% to
7.5% owing to the Kuoni Groups lower cost of debt and equity. The
1.0 percentage point change in WACC led to lower costs for capital
invested in operations and thus to a positive effect of CHF 9.5 million
on Kuoni Economic Profit. Average invested capital fell from
CHF 984 million to CHF950million. The reasons for this were the
active management of invested resources and the fact that depre
ciation and amortisation were not fully offset by new investments.
KUONI ECONOMIC PROFIT (KEP)

(CHF MILLION)
90
60
52.1
30
0
30
23.3
60
90
46.8
64.3
2009
2010
2011
56.6
2012
2013
The return on invested capital (ROIC) in 2013 was 13.0% compared to

2.8% in 2012. Return on invested capital (ROIC) excluding effects
from withdrawal from loss making european tour operating activities
and pension fund changes was 9.6%.
66
KUONI GROUP REPORT
01_03_01
Key Figures (CHF million)

Net operating profit after tax (NOPAT)
Average invested capital
Return on invested capital (ROIC)
Weighted average capital costs
(WACC)
ROIC WACC spread
Kuoni Economic Profit (KEP)
Delta KEP
2013
2013 without
effects from
withdrawal from
European tour
operator activities
and Swiss pension
fund change and
curtailment
2012
123
950
13.0%
91
950
9.6%
28
984
2.8%
7.5%
2.1%
8.5%
5.7%
56.6
9.8
7.5%
5.5%
52.1
108.7
RETURN ON INVESTED CAPITAL

(ROIC) (%)
20%
15%
13.0%
10%
9.6%
5.4%
5%
0%
NOPAT divided by the average capital

invested in operations gives return
on invested capital (ROIC), which is compared with WACC for the Kuoni Group
to determine value-adding performance.
0.1%
2009
2010
3.3%
2.8%
2011
2012
2013
2013 WITHOUT EFFECTS OF

WITHDRAWAL FROM EUROPEAN TOUR
OPERATOR ACTIVITIES AND
SWISS PENSION FUND CHANGE
AND CURTAILMENT
67
01_03_01
KUONI GROUP REPORT
K UONI GROUP EXPECTS STABLE ECONOMIC ENVIRONMENT

FOR 2014
The International Monetary Fund (IMF) forecasts that the positive

effects that drove global economic growth in the second half of 2013
>> FORECASTS
The International Monetary Fund (IMF)

forecasts that the global economy will
grow by 3.7% in 2014 (source: IMF World
Economic Outlook Update, January 2014).
This is slightly higher than the 3.0% growth
forecast for 2013. The IMF expects
economic uncertainty to recede and for
growth to pick up slightly.
will continue to influence forecasts
> in 2014 (World Economic
Outlook, January 2014). In the USA the upturn is being fuelled by

increased domestic demand and a subsiding fiscal drag. The latest
available estimates suggest that the Eurozone will continue to recover,
though the upturn will be more modest in the crisis regions. The
private and public debt burden will dampen domestic demand, but
increasing exports will continue to help growth. Further expansion
is expected in the emerging economies. Indias economy will continue
to expand, fuelled by export growth and measures to support new
investment. Increased investment bolstered Chinas growth in 2013,
but this is expected to be a temporary effect; government measures
to rein in credit will see growth slow slightly in 2014.
The World Tourism Organization (UNWTO) believes that international tourism will continue to expand worldwide. For 2014 it
predicts growth of 4% to 4.5%, which is above the long-term trend
rate (source: UNWTO World Tourism Barometer, January 2013).
Excluding the one-time effects, Kuoni Group achieved in 2013
turnover of CHF 5610 million, an EBIT margin of 2.1% and a return
on invested capital (ROIC) of 9.6%. In the medium term, Kuoni
Group is aiming for annual turnover growth (CAGR) for 20142016
of 4% to 6%, with an increased EBIT margin of 2.5% or higher.
Alongside EBIT growth, free cash flow should also increase. Return
on invested capital (ROIC) should be at least 12% in 2016.
68

Division
GLOBAL TRAVEL SERVICES DIVISION
GROUP TRAVEL
Room nights booked
TURNOVER (CHF)
Booked coaches
943
26.8
22.3
MILLION
2.2%
EBITA (CHF)
MILLION
EBIT (CHF)
MILLION
SOURCE MARKET
11%
Europe
5%
North America
1%
Central and
South America
83%
Asia / Pacific
DESTINATION MIX
1%
North America
3%
Asia / Pacific
96%
Europe
GROUP TRAVEL
Organised group tours
TOP DESTINATIONS
Leading destinations in terms
of booked room nights
GROUP TRAVEL
01_03_02
GROUP TR AVEL
Turnover came to CHF943million in the 2013 financial year (2012:

CHF 964 million). The average size of the workforce (FTE) was 1660.
How does the Group Travel business model

work? (Quick Search: 13105)
A total of approximately 50000 group tours were put together, orga

nised and executed by Kuoni Group Travel Experts in 2013. 43% of
all tours involved Japanese groups. A total of 3.2 million room nights
were booked. 35% of reservations were for Japanese tour parties,
and 24% for Chinese. Almost 110000 coaches were booked for these
tours.
Kuoni Group Travel Experts organised

almost
50000
group tours in 2013, with
The highest numbers of overnight stays by group travellers were

recorded for destinations in France, Italy, Germany, the UK and
3.2 million
Switzerland. The most visited city was Paris, followed by Rome and
room nights booked.
Florence. The ten most visited European cities accounted for 42%
of all overnight stays booked.
Bookings went up particularly significantly in London because in the
Almost
prior year the destination had been less popular for group tours
110000
owing to the Summer Olympics Games. Scandinavian countries and

Finland also posted substantial growth rates. Demand for group
trips to see the midnight sun in summer and the northern lights in
coaches were booked for group

travellers in 2013.
winter went up significantly.

In 2013 Kuoni Group Travel Experts announced a global partnership
with Crescentrating, a company specialising in travel for Muslims.
This enabled Kuoni to expand its offering of Halal-friendly group
holidays. Tailored specifically to Muslim holidaymakers, these are
For further information about the

activities of Group Travel (Kuoni Group
Travel Experts), please visit kuoni.com
(Quick Search: 13106)
enjoying strong growth throughout the world.
73
74
FIT
Room nights booked
TURNOVER (CHF)
MILLION
5.8%
EBITA (CHF)
MILLION
EBIT (CHF)
MILLION
1802
74.5
53.0
SOURCE MARKET
14%
Middle East /
Africa
29%
Asia / Pacific
41%
Europe
7%
Central and
South America
Transfers booked
9%
North America
DESTINATION MIX
9%
Middle East /
Africa
18%
Asia / Pacific
51%
Europe
2%
Central and
South America
20%
North America
FIT
Sightseeing tours
available online
TOP DESTINATIONS
Overall the most popular cities,

based on booked room nights
Restaurants and show contracts

in the database
FIT
01_03_02
FIT (FULLY INDEPENDENT TR AVELLER)
Turnover rose to CHF1802million in 2013 (2012: CHF 1703 million).

FIT had an average workforce of 1332 (FTE).
12.7 million room nights were booked through GTAs destination and
accommodation databases. The highest figures overall for room
nights in 2013 were recorded for top destinations
> in the USA, Italy,
How does the FIT business model work?

12.7 million
Booked room nights through
GTAs database in 2013
France and the United Kingdom.

The cities with the highest number of bookings were Paris, London,
Dubai, Rome, New York and Barcelona. London in particular recorded
higher booking figures as demand recovered from the downturn
experienced during the Olympic Games of 2012. The most popular
>> TOP DESTINATIONS
USA, Italy, France, UK, Germany,

United Arab Emirates, Thailand, Singapore,
Malaysia, China, Australia.
holiday destinations in the Asia/Pacific region were Thailand,

Singapore, Malaysia, China and Australia.
Overnight stays in hotels in Europe were booked most frequently
in 2013 by customers from the UK, Italy and the USA. For hotels in the
An average of
Middle East and Africa, most bookings came from Saudi Arabia, the
110 million
United Arab Emirates and the UK. Hotels in Asia/Pacific did the most
business with customers from Australia, Japan and Hong Kong.
And in North America and the Caribbean most hotels were booked
by travellers from Australia, the UK and Brazil.
availability requests were made

every day in 2013 via GTAs XML
databases.
TravelCube, GTAs brand for travel agency sales, was introduced as

a distribution channel in Australia, parts of Asia and in Eastern
Europe in 2013. In Switzerland TravelCube replaced the previous FIT
system Kuoni Connect in our own Kuoni branches as well as in
external travel agencies.
77
01_03_02
FIT
XML = Extensible Markup Language

It is a simple, very flexible text format for
exchange of platform-independent data
between computers, especially through
internet.
The XML technical standard was rolled out to all of GTAs databases.
This allows hotels, for example, to adjust their room availabilities
and prices on the GTA database on an ongoing basis to match supply
and demand. As a result, tens of thousands of online and offline
travel agencies, tour operators and aggregators can now make superfast bookings through GTA.
For further information about the activities

of FIT (Fully Independent Traveller, GTA),
please visit kuoni.com (Quick Search:
13108)
Every day 110 million availability and price requests were made
through GTAs XML-destination and accommodation databases.
Almost 21000 room nights were booked on average each day.
The average query time was 0.47 seconds virtually the same as
in 2012 despite the increased number of requests and bookings.
78

Division
OUTBOUND & SPECIALISTS DIVISION
OUTBOUND NORDIC
Share of internet bookings
TURNOVER (CHF)
APOLLO
MILLION
1.1%
EBITA (CHF)
MILLION
EBIT (CHF)
MILLION
982
37.8
36.8
SOURCE MARKET
Apollo collected over 117 000 reviews with the

Customer Feedback Channel Revoo
100%
Europe
NOVAIR
DESTINATION MIX
Transported passengers
6%
Asia / Pacific
8%
Middle East /
Africa
4%
Central and
South America
82%
Europe
OUTBOUND NORDIC
Share of bookings with

direct customer contact
APOLLO
Apollo supported ten charity initiatives
at the destinations
SCANDINAVIA
Favourite summer destinations
OUTBOUND NORDIC
01_03_03
OUTBOUND NORDIC
In 2013 this Business Segment generated turnover of CHF982million

(2012: CHF 993 million). An average of 860 employees (FTE)
worked at Outbound Nordic in 2013. The share of online bookings
made in local currencies went up again, rising to 65% in 2013 (2012:
62%). The proportion of bookings made through direct customer
contact remained on the high level of 73%. Travel services for more
How does the tour operator business

model work? (Quick Search: 13109)
73%
of bookings were made through
direct customer contact in 2013.
than 1.3 million customers had been booked in Outbound Nordic

in 2013.
SWEDEN
Turnover went up in the 2013 financial year. Following the travel

freeze to Egypt as of the second half of the year, flight capacity was
increased to the Canary Islands. In the long-haul sector, political
65%
of travel products in Outbound Nordic
were sold directly (in local currency)
over the internet in 2013. Finland and
Sweden recorded the highest pro
portion of online sales.
unrest in Thailand prompted a diversion of flight capacity to

the Caribbean. The island of Tobago was launched as a new holiday
destination in the fourth quarter. The favourite destinations
for Swedes in 2013 were the Greek islands of Crete and Rhodes.

the Swedish market, please visit kuoni.com
NORWAY
Turnover from activities in Norway went up again in 2013. Norway

was once again the most successful part of the Outbound Nordic
Segment. The most popular holiday destinations in 2013 were Greece,

in the Norwegian market, please visit
kuoni.com (Quick Search: 13111)
Spain, Croatia and Bulgaria. The growth in bookings was driven

mainly by the increased offering to Greece in the summer and to the
Canary Islands in the autumn.
DENMARK
The Danish units business model was adjusted in 2013. Services

for individual travellers were stopped as were cost-intensive flightrelated risks on long-haul routes, which led to a fall in turnover.

the Danish market, please visit kuoni.com
However, administrative areas were consolidated, which helped to cut

83
01_03_03
OUTBOUND NORDIC
operating costs. The most important destinations were the Greek

Islands and the Canaries, especially Fuerteventura.

the Finnish market, please visit kuoni.com
FINLAND
The Apollomatkat brand, which has continued to grow since it was

introduced to the market in 2011, is now number four among
Finlands traditional tour operators. Thanks to greater flight capacities and higher average prices, turnover increased by 40% yearon-year. This growth came from both online bookings and sales in
independent travel agencies. The favourite destinations were
Croatia and Jordan.
For further information about Novairs

activities, please visit kuoni.com (Quick
Search: 13114)
NOVAIR
In 2013 the holiday airline operated three A321-200 aircraft for short
and medium haul routes, and one A330-200 long-haul plane. These
aircraft are leased until summer 2016. In 2013 Novair flew to a total
of nine holiday destinations from three origin airports. The aircraft
flew with an average passenger load factor of 96%.
T HE PLAYITAS FAMILY AND SPORTS RESORT,

FUERTEVENTUR A
For further information about the

Playitas family and sports resort, please
visit kuoni.com (Quick Search: 13115)
The resort, operated by Outbound Nordic on the Canary Island

of Fuerteventura, increased its turnover compared with the previous
year. Its average occupancy rate rose to 86% in 2013 (2012: 77%)
thanks in particular to additional flight capacities from European
source markets following the suspension of travel to Egypt.
Most guests were from Denmark, Sweden and Germany.
84
OUTBOUND EUROPE / ASIA
UK
TURNOVER (CHF)
Facebook fans (As at 1 March 2014)

(www.facebook.com/kuonitraveluk)
SWITZERLAND
CUSTOMER
SATISFACTION
MILLION
18.7%
EBITA (CHF)
MILLION
EBIT (CHF)
MILLION
1414
34.1
27.8
SOURCE MARKET
20%
Asia / Pacific
(Corresponding a customer survey

for and after the trip)
80%
Europe
Share of customers satisfied

by Kuoni and its services
DESTINATION MIX
11%
Middle East /
Africa
Share of customers who would

recommend Kuoni actively
37%
Europe
34%
Asia / Pacific
9%
Central and
South America
9%
North America
OUTBOUND EUROPE / ASIA
UK
SWITZERLAND
Top 5 destinations for honymoon trips
EXPERT
EXCHANGE
Expert tips from over 700 Kuoni
employees available online
SWITZERLAND
Turnover growth of the three online platforms:
kuoni.ch, helvetictours.ch and lasminute.ch
01_03_03
The central development for this Business Segement in 2013 was

the completion of the withdrawal from loss-making European tour
operating activities. Kuonis exit from the tour operating business
How does the tour operator business

model work? (Quick Search: 13116)
in Italy, France and Belgium, as well as from the online platform

Octopustravel, was completed during the first half of the year. The remaining activities in the Business Segment generated increased
turnover of CHF 1355 million (2012: CHF 1322 million). An average
of 3156 employees (FTE) in total worked for this Business Segment.
Almost 750000 customers travelled in 2013 with Outbound Europe/
Asia tour operator brands.
SWITZERLAND
This unit generated higher turnover overall in 2013. Tour operating

activities under the Kuoni and Helvetic Tours brands, and the
ten specialists all contributed to this result.
In traditional tour operating, demand increased in particular for the
key destinations of Greece, Spain, and Turkey, and for medium and
long-haul destinations in the Middle East and Southeast Asia. The
rainy spring of 2013 also led to an increase in bookings. Meanwhile,
the travel freeze to Egypt caused a decline in turnover, though this
was offset in part by rebookings to other destinations. The Canary
Islands, United Arab Emirates and Oman benefited from this.
Bookings made through direct customer contact
>>
DIRECT CUSTOMER CONTACT

The share of sales made through direct
customer contact went up in 2013 from 55%
to 56%.
> went up again
in 2013 to 56% (2012: 55%). Internet bookings increased to 14% as a

percentage of total sales. In particular, bookings made through the
own Dynamic Packaging platform and the revamped lastminute.ch
website saw a significant increase in turnover.
14%
share of turnover for products
available on the Internet.
The number of Kuonis own travel agencies was reduced by 3 to 80,

but even with this smaller presence turnover was kept at the prior
years level.
87
01_03_03
Among the specialist tour operator brands, there was good growth
in Switzerland, please visit kuoni.com
for holidays in Northern Europe (Kontiki), South America (Dorado

Latin Tours), and East and Southern Africa (Private Safaris) as well as
for the rail specialists (Railtour/Frantour). The decision was taken
in 2013 to integrate intens travel, the India/China specialist, into Asia
specialist asia365 at the beginning of 2014. At the same time Croatia
specialist Unique Travel was renamed adria365.
65%
of bookings made through direct
customer contact in 2013.
UNITED KINGDOM
Tour operating activities by the Kuoni brand and the five specialists
maintained turnover at the prior-year level. The proportion of
bookings made through direct customer contact went up to 65%
(2012: 57%).
The successful retail partnership with department store operator
John Lewis Group was expanded in 2013, with the number of locations
>>
RETAIL STORES
The number of own retail stores increased
from 26 to 30 in 2013.
doubled from four to eight. Added to our own network of retail stores
>
this meant the overall number of Kuoni sales outlets was increased to
30. Kuoni UKs most popular destination were the Maldives. Holiday
destinations in South America, India, Mexico and Vietnam enjoyed
growth. Cruises were added to the product portfolio.
The specialist tour operator brands saw increased demand for destinations within Europe, especially for Greece, France, Spain, Germany

in the UK market, please visit kuoni.com
and Scandinavia. Guided tours and holiday destinations in the

Caribbean, Southern Africa and Asia also enjoyed growth. On the other
hand, the travel freeze in the second half of 2013 brought an end to
cultural trips to Egypt.
Overall, tour operating activities in the UK benefited from the
improved economic situation, product innovations and investments
in online booking facilities.
88
01_03_03
BENELUX SPECIALISTS
The three specialist brands performed positively again in 2013.

Turnover went up despite a competitive environment that remains
tough. Business activities were given a boost by an expanded
For further information about the activities of our Benelux specialists, please visit
kuoni.com (Quick Search: 13119)
internet presence for direct customer contact and by product inno

vations. The most popular holiday destinations were India,
Morocco and Indonesia.
INDIA
A sharp drop in the value of the Indian rupee against all the major
currencies made foreign travel more expensive for Indian consumers.
As the price of travel services (flights, hotels etc.) rose, demand fell
For further information about Kuoni

Indias activities, please visit kuoni.com
significantly. Indian companies also started spending much less on

business trips. Meanwhile, the difficult economic situation led to
payment defaults, which meant value adjustments had to be made on
receivables and prepayments. In this economic environment, com
petition intensified greatly again compared with the prior year, and
turnover for 2013 was lower.
The Kuoni Academy was sold at the end of 2013 as Kuoni focused
on its core competence. The training institution had made losses for
the last few years. All 21 employees concerned have been taken on
by the new owners. The Kuoni Academy was opened in India in 2003
and had in 2013 ten centres across India. Over 17500 students have
been successfully trained the last 10 years and had been placed in the
tourism industry.
The tour operator brands Kuoni and SOTC were repositioned within
a new brand strategy during the year under review. In 2013, Kuoni
India also introduced online technology, facilitating lower costs and
faster booking processes in both the tour operating and business
travel sectors. The most important destinations 2013 in Europe were
the UK, Switzerland and France. The most trips sold were to
Southeast Asia.
89
01_03_03
For further information about Kuoni China/

Hong Kongs activities, please visit kuoni.
com (Quick Search: 13121)
CHINA/HONG KONG
This unit increased turnover again in 2013. The positive economic

environment in China/Hong Kong led to generally higher employment
and higher wages, and thus to greater private consumption. This had
a positive impact on the purchase of travel products. High-value accompanied tours to Europe, Turkey, New Zealand, South America and the
Antarctic enjoyed particularly strong demand.
In February 2013 tragedy struck when nine customers were killed in
a hot-air balloon accident in Egypt. Caring for the surviving customers
in Egypt, organising travel for relatives and handling the associated
public communications presented exceptional challenges. Thanks to
the documented emergency plan, these challenges were met in a very
professional manner.
90
WORLD TRAVEL AWARD

World`s Leading Destination Management
Company for the 4th time in a row
BRITE SPOKES
AlliedTPro, Kuoni`s
Destination Manangement Specialist
in the US, launches a new brand for
individual adventures
MILLION
TURNOVER (CHF)
4.3%
EBITA (CHF)
MILLION
EBIT (CHF)
MILLION
417
6.4
2.5
SOURCE MARKET
7%
Middle East /
Africa
10%
Asia / Pacific
5%
Central and
South America
9%
North America
69%
Europe
DESTINATION MIX
16%
North America
43%
Middle East /
Africa
41%
Asia / Pacific
PRIVATE SAFARIS
DISTANT FRONTIERS
Awarded with Fair Trade Tourism Certification

in South Africa
The Destination Knowledge Centre travelled

102 200 km, which is equivalent to two and half
times the circumference of the earth
ASIAN TRAILS
Handled passengers and tours
01_03_03
The global network of nine Destination Management Specialists

generated overall turnover of CHF417million in 2013 (2012:
CHF 400 million). An average of 1816 employees (FTE) worked in
How does the Destination Management

Specialists business model work? (Quick
Search: 13122)
this Business Unit in 2013.

Kuonis Destination Management Specialists in India (Sita/Distant
In the USA in 2013
Frontiers) posted positive growth. The fall in the value of the rupee
950000
made travelling on the subcontinent cheaper, leading to stronger

demand, especially from Europe. Delhi, Agra and Jaipur were the most
popular Indian cities for holidaymakers; the Kerala region was also a
favourite. Demand went up for destinations in the Asia/Pacific region
transactions for travel services were

booked through Destination Management Specialist AlliedTPro.
as well (Asian Trails/Australian Tours Management). There was a

particularly sharp rise in the number of guests from India. The most
favoured destinations in Asia/Pacific were Thailand, Vietnam,
Indonesia and Myanmar.
In India in 2013 Sita/Distant Frontiers

travelled
The Destination Management Specialists in India and Asia/Pacific
102200
were the most successful parts of the Business Unit. More than
800000 travellers had been handled by the Destination Management
Specialists in 2013.
kilometres through 133 locations

to gather expert knowledge about
destinations.
European economic crisis in the source markets of Southern Europe

had a negative effect particul arly on the Destination Management
Specialists in the Middle East (Desert Adventures Tourism/Gulf Dunes)
and the USA (AlliedTPro). In addition, the Russian market turned
out to be highly competitive. At the same time, terrorist attacks in
Kenya and the civil war in Syria led to a fall in demand in the
Middle East and East Africa (Private Safaris).
93
01_03_03
In 2013 the destination management internet platform Emirates YOO

was launched for the United Arab Emirates. This offers consumers
For further information about the activities of Destination Management
Specialists, please visit kuoni.com
expert knowledge, tips and news about the UAE. Related travel services
can be booked directly via the website.
In 2013 Kuoni Destination Management Specialists won the World
Travel Award for Best Global Destination Management Company for
the fourth year in a row.
94
VFS Global
Division
VFS GLOBAL DIVISION
VFS GLOBAL
Global operations certified ISO 14001:2004

for Environmental Management Systems
Processed Visa Applications
MILLION
TURNOVER (CHF)
19.0%
EBITA (CHF)
MILLION
EBIT (CHF)
MILLION
244
40.2
40.2
SOURCE MARKET
9%
Middle East /
Africa
19%
Europe
2%
Central and
South America
70%
Asia / Pacific
DESTINATION MIX
7%
Middle East /
Africa
16%
Asia / Pacific
60%
Europe
17%
North America
VFS GLOBAL
Visa Application Centres

and new Visa Application Centres in 2013
VFS Global employs

people from over 77 nationalities
Every 1.75 second a visa application

was processed
VFS GLOBAL
01_03_04
VFS GLOBAL
The Visa services provider reported further strong growth in 2013.

Turnover rose to CHF244million (2012: CHF 205 million). The
How does VFS Globals business model

work? (Quick Search: 13124)
average headcount (FTE) was 2666.

On 31 December 2013, VFS Global was operating 1136 Visa Application Centres (VACs) in 107 countries. During the 2013 financial year
369 VACs were opened, of which 241 were in South Asia, Russia and
the former Soviet republics. 62 new VACs were opened in the Middle
East and Africa, and 86 in other regions. 286 of total 369 opened VACs
are operated in countries where, for regulatory or cultural reasons,
VFS Global does not operate its own VACs. These Facility Management
As at 31 December 2013
VFS Global ran
1136
Visa Application Centres (VACs) in
107 countries.
Companies (FMC) VACs process visa applications under the direct

supervision and control of VFS Global, and following the same systems,
processes and rules as VFS Globals own VACs.
In 2013 VFS Global processed
In 2013, 18 million visa applications were processed by VFS Global
18 million
around the world. Since it was founded in 2001, VFS Global has
visa applications worldwide.
processed 73.7 million visa applications.

In addition, in 2013 the company started processing visa applications
for the Kingdom of Saudi Arabia, and by the end of 2013, the first
20 VACs were opened in 10 countries. Visa application processing for
Saudi Arabia represents the biggest contract won by VFS Global so
far in terms of both order volume and scope of services.
During the year under review VFS Global won several other global
contracts as well. Most of these were completely new contracts for VFS
Global, while some were renewals. They include contracts with the
governments of the United Kingdom, the Netherlands, Denmark and
Switzerland.
99
01_03_04
VFS GLOBAL
In 2013 VFS Global developed a video-conferencing solution that

allows the UK government to conduct interviews with applicants
around the world from a central hub. This is especially for student
visa applicants. 65 locations have been set up in 25 countries from
where the applicants can log-on for the interview.
In 2013 a technology-driven solution was also developed and introduced in collaboration with the Ministry for Foreign Affairs Finland
that enables the Ministry to process visa applications at a remote
visa processing center or at multiple locations.
A biometric integration solution was introduced for the Swedish
government for more efficient recording and faster processing of visa
applications.
For further information about VFS Globals

activities, please visit kuoni.com
Other services for simplifying and accelerating the visa application

process were introduced in 2013. In UK VACs in India and China, for
example, applicants can book a service that allows them to keep
and use their passport during the application process after the initial
verification has been done by the mission and until a decision is
made. When applying to travel to the UK, applicants in India can also
book a Super Priority Visa Service than can result in a visa being
issued within a day.
As at 31 December 2013, VFS Global was running more than 837 websites in 47 different languages to provide visa applicants all over the
world with information.
100
CORPORATE RESPONSIBILITY
JOINING THE
UN GLOBAL COMPACT
Corporate
Responsibility
In 2013 Kuoni became a member of the UN Global Compact, a strategic

initiative for companies committed to aligning their business operations and
strategies to ten universally recognised principles in the fields of human
rights, labour, environmental protection and anti-corruption. In so doing, the
company undertakes to integrate the Initiative's goals in its corporate
strategy and daily business and to promote them further through suitable
partnerships. The following pages serve to update our stakeholders on our
progress in these fields.
HIGHLIGHTS 2013
HUMAN RIGHTS
LABOUR
* Kuoni supports two NGOs which
* 7 Business Units have integrated
help prevent the sexual exploitation

of children in tourism. Through our
support, these organisations have
reached out to 2 890 children in 2013.
* 184 stakeholders were consulted
during the Human Rights Impact

Assessment in India. This assessment
resulted in 15 commitments for further
actions by Kuoni.
Corporate Volunteering actions in 2013,

with more to come in 2014. 6 charity
organisations have benefited so far.
* Kuoni offers 229 Travellife Sustainability

System awarded hotel in its traditional
tour operating business (up 72% from
previous year). These hotels have been
found to have fair working conditions
for their employees, amongst various
other sustainability criteria.
ENVIRONMENT
ANTI-CORRUPTION
* Kuoni published its Statement of
* Approximately 70% of employees
Commitment on the Environment

highlighting commitments in the areas
of climate change, water management
and biodiversity.
* There are 10 candidates for the
Water Champions Award in Kenya.
completed an online test on anticorruption.
* In the course of a risk assessment,
2 one-day workshops with management

were held.
HUMAN RIGHTS
Principle 1: Businesses should support and respect the protection of

internationally proclaimed human rights.
In its continued effort to assess the actual and potential impacts
of Kuonis operations and its business relationships on the human
rights of the people in the destinations, Kuoni has conducted a
human rights impact assessment at its Destination Management
Specialist Sita in India in 2013. This process allowed identifying
mitigation measures to be implemented by Sita throughout 2014 and
2015 as well as engaging management and stakeholders at a corporate
level, embedding human rights in Kuonis business practice. An
accompanying report which transparently explains the assessment
01_03_05
ABOUT THIS CHAPTER
With this chapter, Kuoni seeks to inform

its stakeholders about the approach it
takes toward its commitments in the four
areas of intervention aligned with the UN
Global Compact, specifically Human Rights,
Labour, Environment and Anti-corruption.
This is the sixth official communication on
CR of the Kuoni Group, the last version
of which was published for the 2012 annual
reporting period. All Corporate Responsibility reporting, key performance indicators
and targets are based on the latest internationally recognised guidelines of the Global
Reporting Initiative (GRIG4). The GRI Index
is available online (Quick Search: 13127).
process and the action plan is available online (Quick Search: 13126).
Principle 2:Businesses should make sure that they are not complicit
in human rights abuses.
Through the human rights impact assessments conducted in 2012 in
Kenya
> and in 2013 in India, following topics were identified where
Kuoni can contribute but which require a broader industry approach:

impacts on the communities, childrens rights, distribution of
economic benefits, labour issues at key suppliers and womens rights.
Kuoni wants therefore to launch a sector-wide multi-stakeholder
STATEMENT FROM THE CEO
Sustainability along the entire value chain

is a key pillar of Kuonis corporate strategy.
We aim to keep our stakeholders informed
on how we address and improve the
sustainability of our business. Our continued commitment to the UN Global
Compact as well as the Communication
on Progress found herein demonstrates
our engagement.
Peter Meier, CEO of the Kuoni Group
collaboration in Kenya on these issues.
LABOUR
Principle 3: Businesses should uphold the freedom of association and

the effective recognition of the right to collective bargaining.
>>
MITIGATION ACTIONS IN KENYA

An overview of actions undertaken in 2013
based on the pilot human rights impact
assessment conducted in Kenya can be
found on kuoni.com (Quick Search: 13128).
Kuoni acknowledges the right to collective bargaining and freedom

of association as outlined in its Statement of Commitment on
Human Rights and the ILO (International Labour Organisation)
Declaration on Fundamental Principles and Rights at Work.
103
01_03_05
CORPORATE VOLUNTEERING
Not only is Kuoni committed to the four

basic principles for fair labour conditions
as outlined, it also understands that its
colleagues are an invaluable partner in reinforcing its sustainability strategy. Encouraging employee engagement is a key focus.
To this end, corporate volunteering was
launched throughout the Kuoni Group in
2013. Several units in China, India, the
Netherlands, UK, UAE, South Africa, and
the US implemented corporate volunteering actions in order to allow employees to
engage in a good cause while spending
a work day in a different and unique way.
Through these actions Kuoni colleagues
supported different charity organisations
by, for example, running a marathon,
teaching children with special needs or
working in the nature (Quick Search 13129).
>>
SUPPLIER CODE OF CONDUCT

Kuoni has defined its minimal requirements
towards its suppliers in the Kuoni Supplier
Code of Conduct, a policy document which
requires suppliers to adhere to human
and labour rights, compliance with local
law and environmental standards, nondiscrimination, anti-corruption, work place
safety and hygiene and child protection.
Kuoni works with the Travelife certification
scheme to ensure no form of forced
and compulsory labour appears in supplier
hotels (Quick Search 13130).
For the VFS Global Division, staff have not chosen to associate themselves with any trade union. Should a need arise, VFS Global is open
to recognise such registered trade unions and to represent the interest
of its employees in those countries.
Principle 4: Businesses should uphold the elimination of all forms of
forced and compulsory labour.
Kuonis Supplier Code of Conduct forbids all forms of forced labour.
Through its human rights due diligence process, Kuoni regularly
assesses where forced and compulsory labour occurs in tourism and
identifies preventive measures for individuals who are particularly
vulnerable to exploitation. Kuoni pays particular attention to protecting children from commercial sexual exploitation in tourism, a form
of child labour which amounts to forced labour and a contemporary
form of slavery.
Principle 5: Business should uphold the effective abolition of child
labour.
The prohibition of child labour is at the basis of any business
relationship between Kuoni and its suppliers and specified in the
Kuoni Supplier Code of Conduct
>.
In collaboration with ITB Berlin, Tui Travel, Accor Group, GIZ and
The Code
> Kuoni launched a project to combat child sex tourism
aiming to ensure and inspire action on the issue through testing and
optimisation of web-based tools put in place in Thailand as a pilot
country. In 2013 the new e-learning system has been tested and further
optimised and at least 60% of The Code members in Thailand have
>>THE CODE
Kuoni has been an active member of the

Child Protection Code since 2006 and
is represented on its board. As part of this
commitment, Kuoni informs its customers about the issue, contractually obliges
its partners to adopt the same ethical
104
been trained with the new system.
01_03_05
Principle 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation.
The Kuoni Code of Conduct outlines the companys commitment
approach and shows its partner hotels

and their employees what they should do if
they come across any cases of sexual
exploitation of children in the course of
their work (Quick Search 13131).
to ensuring, within its multicultural teams and working environment,

that nobody is harassed or discriminated against for any reason such
as their race, religion, belief, nationality, sex, age, sexual orientation or
Kuoni employees donated
disability.
10000 CHF
ENVIRONMENT
to Childrens Rights Goa as part of the

annual Christmas Campaign.
Principle 7: Businesses should support a precautionary approach to

environmental challenges.
>>
Kuoni is fully aware that it is dependent upon the rich natural

resources and unique landscapes at the destinations and thus has the
responsibility to minimise the negative impacts of its business on
the environment, while at the same time enhancing its positive actions
towards life in general. To this end, Kuoni has published a Statement
of Commitment on the Environment
> based on the Kuoni Code of
Conduct and the precautionary approach.
STATEMENT OF COMMITMENT
The Statement of Commitment on the
Environment outlines Kuonis engagement
in the protection of the environment in key
destinations and operations worldwide.
Three priority areas which have the greatest impact on its business and product
offer were defined to be climate change,
water and biodiversity. The Statement
of Commitment details key interventions in
each of these areas. Download the Statement online (Quick Search 13132).
Principle 8: Businesses should undertake initiatives to promote

greater environmental responsibility.
Kuoni integrates sustainability issues into its operations and supply
chain and aims to implement efficient environmental management
VFS Global has achieved
systems within key hotel partners. In November Kuoni organised a
ISO 14001:2004
supplier workshop in Bali, Indonesia to provide hotel partners with

the necessary tools and business skills to implement cost effective
environmental management systems. 55 hotel managers and technical engineers participated in the two-day workshop.
certification in 2013. ISO 14001 is the

worlds most recognised environmental management standard.
105
01_03_05
FOSTERING BIODIVERSITY
WITH THE IUCN
Kuoni has developed the Sustainable Excursion Guidelines for deci-
Kuoni has continued its engagement with

the International Union for Conservation
of Nature (IUCN) in two pillar initiatives
aimed at maintaining biodiversity in key
Kuoni destinations.
In April Kuoni and IUCN hosted a workshop in the Maldives as part of an ongoing
collaboration to enhance the resilience
of coral reefs against the growing threat
of climate change and coral bleaching
by improving local management of resort
reefs. Over 40 participants were in
attendance.
In October a training seminar for 30 conservationists from Sri Lanka was held with
the aim of providing them with the business skills necessary to design successful
ecotourism products and to support
marketing initiatives.
sion making when sourcing or selling excursions to customers in

order to guarantee that excursions take environmental, social and
economic impacts into full account. The guidelines align with the
Convention on International Trade in Endangered Species of Wild
Fauna and Flora (CITES) and ensure that best practice guidelines
for tourism businesses are met according to relevant codes of conducts
such as ABTAs Animal Welfare Minimum Requirements.
Principle 9: Businesses should encourage the development and
diffusion of environmentally friendly technologies.
Kuoni has focused its activities on promoting technical solutions
and operational improvements in hotels, investment in community
projects to minimise the adverse impacts of water competition and
communication to customers, starting its activities in Kenya. A comprehensive user manual was the culmination of a pilot study. The aim
was for the end-user to have the tools necessary to implement a sustainable water management in their own operations step-by-step.
Any hotel committing to the process outlined in the manual will be
60%
of Kuoni hotel suppliers in the Mombasa region participated in two Kuoni
Water Champions training seminars
held in April 2013.
106
eligible for the Kuoni Water Champion award.
01_03_05
ANTI-CORRUPTION
Principle 10: Businesses should work against corruption in all its

forms, including extortion and bribery.
Commitment & Policy: Kuoni is committed to doing business ethically
and believes that bribery and corruption are wrong and not acceptable.
According to the Kuoni Code of Conduct (CoC), each employee
is obliged to comply with all applicable laws, rules and regulations as
well as with internal regulations and guidelines. The CoC also states
that gifts and hospitality may not be given, offered or received with
the intent or prospect of influencing decision making or other
conduct and refers to Kuonis Group Anti-Corruption Regulation
(Group Regulation) for further guidance. The Group Regulation
has been issued by Kuonis Board of Directors and is fully endorsed
by the Group Executive Board.
The VFS Global Division has issued its own Anti-Corruption Regulation (VFS Regulation) in line with the Group Regulation. The focus
in 2013 was on implementation
> of the Group Regulation within the
Kuoni Group. Further, a corruption risk assessment was conducted

across the Kuoni Group and mitigation actions are being
implemented.
Monitoring: All business units must maintain adequate compliance
monitoring programs and Group Internal Audit reviews the effectiveness of the Regulation and compliance with it. Findings are reported
>>
IMPLEMENTATION
The Group Regulation was rolled-out within
Outbound & Specialists and Global Travel
Services Divisions and the Group functions.
In the communication by the Group CEO
and the Group Compliance Officer Kuonis
commitment to integrity was reiterated
and employees were asked to report any
suspicious activity.
A customised e-learning module was
rolled-out through the LMS (Learning
Management System). Approximately 75
percent of employees of the two Divisions
and the Group functions have completed
the course. In some units in more exposed
jurisdictions classroom trainings have
been held.
All employees of the VFS Global Division
were encouraged to go through the VFS
Regulation in the LMS. HR managers were
trained and 54 percent of VFS Globals employees have passed an online test. Since
November 2013 a revised version of the
VFS Regulation is available in the LMS.
to the Audit Committee and the Group Compliance Officer. Kuoni

urges all employees to report any violation of the Regulation. Reports
to the Group Compliance Officer can be made on a confidential
basis or anonymously (whistleblowing).
107
108

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KUONI

Annual Report 2013

Key figures 2013

Letter to the Shareholders

Destination Management Specialists

VFS Global Division

Kuonis Group Structure

The Kuoni World Map

Outbound & Specialists Division

FIVE-YEAR-SUMMARY OF KEY DATA 112

Statement of Financial Position

The Group Executive Board

Compensation, Shares and Loans

Statement of Comprehensive Income 119

Shareholders Participation Rights

Statement of Changes in Equity

Statement of Cash Flows

Notes to the Consolidated

Group Structure and Shareholders

Changes of Control and

and Joint Venture

Report of Statutory Auditor

KUONI TRAVEL HOLDING LTD

Statement of Financial Position

Board of Directors Proposal for the

Principal Subsidiaries, Associates

Appropriation of Retained Earnings

Report of the Statutory Auditor

holidays in Northern Europe (Kontiki), South America (Dorado Latin

integrate intens travel, the India/China specialist, into Asia specialist

of bookings made through direct customer contact in 2013.

TURNOVER OVER FIVE YEARS (MILLION CHF)

maintained turnover at the prior-year level. The proportion of

increased to 30. Kuoni UK's most popular destination were the

Maldives. Holiday destinations in South America, India, Mexico and

Vietnam enjoyed growth. Cruises were added to the product portfolio.

The specialist tour operator brands saw increased demand for

destinations within Europe, especially for Greece, France, Spain,

bookings made through direct customer contact went up to 65%

The successful retail partnership with department store operator

In the side columns you will find

rail specialists (Railtour/Frantour). The decision was taken in 2013 to

Organic turnover growth

Global Travel Services

Outbound & Specialists

Quick search codes

3 REGISTRY AND GREY PAGES

Germany and Scandinavia. Guided tours and holiday destinations in

to cultural trips to Egypt.

Overall, tour operating activities in the UK benefited from the

improved economic situation, product innovations and investments

in online booking facilities.

Sections of text that appear in

01_MARKET REPORT COMMUNICATION

KEY FIGURES 2013

Kuoni Economic Profit (KEP)

Average number of employees (full-time equivalent)

All information on this page can also be found on kuoni.com,

01_MARKET REPORT COMMUNICATION

PERFORMANCE OF KUONI SHARE (CHF) 2013

Annual trading volume in CHF million

per registered share A

01_MARKET REPORT COMMUNICATION

LETTER TO THE SHAREHOLDERS