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Content Page Page

Key Figures and Key Ratios ............................. 1

The KILROY Group .............................................. 2

Group Structure and Locations ........................ 3

Report of the Board of Directors ...................... 4-5

KILROY Individual Travel .................................. 6-7

KILROY Group Travel ........................................ 8

MyPlanet ............................................................. 9

Financial Review .............................................. 10

Management’s Statement and Auditor’s Report .. 11

Accounting Policies .......................................... 12-13

Profit & Loss Account ........................................ 14-15

Balance Sheet ..................................................... 16-17

Cash Flow Statement ........................................ 18

Notes to the Accounts ....................................... 19-24

Board of Directors and Management ................ 25-26

Office Addresses ............................................... 27-28

KILROY travels International A/SKnabrostræde 8DK-1210 Copenhagen KDenmarkCVR-nr. 10 91 52 95

This annual report with financial statements is presented in accordance with the Danish Financial Statements Act.The following is a translation of a Danish original document.The original Danish document text shall be governing text for all purposes and in case and in case of any discrepancy the Danish wording shall be applicable.

The Danish-language annual report is subject to approval at the ordinary general meeting on may 3rd, 2005, and will be filed with the Danish Commerce and Companies Agency.


Key Figures and Key Ratios

DKK million 2000 2001 2002 2003 2004

Profit and loss accountTurnover 1,576 1,539 1,440 1,260 1,209EBITDA 37 38 29 19 21EBIT 16 13 4 -3 2Net financials 5 7 6 -1 3EBT 21 20 10 -4 1Profit attributable to KILROY travels International A/S 13 13 5 -5 0

Balance sheetCash and bonds 367 343 297 216 213Current assets 427 399 352 282 262Total assets 503 491 436 363 332Capital expenditure 36 44 21 22 11Group/Parent company equity 66 79 89 59 69Current liabilities 404 379 315 258 239Cash flow from operating activities 58 26 -33 -57 26

Key ratiosEBITDA - ratio (%) 12.8 12.7 9.9 7.4 8.6EBIT - ratio (%) 1.0 0.9 0.3 -0.3 0.2Return on assets (%) 3.1 2.7 0.9 -0.9 0.6Return on equity, KILROY (%) 20.8 18.5 6.5 -3.7 6.3Liquidity ratio (%) 105.6 105.3 111.8 109.3 109.6Equity ration (%) 13.0 16.1 20.4 16.2 20.9Earnings per share (DKK) 55.4 57.1 23.3 -11.8 14.5Cash flow per share (DKK) 247.8 110.4 -142.8 -243.4 93.1

Dividend (DKK million) 6.5 0 20 0 0 Dividend (%) 28 0 85 0 0 Average number of employees, full-time equivalent 562 588 568 489 438

Definitions:

EBITDA-ratio: EBITDA /gross profit (ex. other operating income) Equity ratio: Equity (ex. minority interests)/total assetsEBIT-ratio: EBIT/turnoverEarnings per share (EPS): Net profit (ex. extraordinary income/expense) per share Return on assets: Operating profit (EBIT)/total assets

Cash flow per share (CFPS): Cash flow from operating activities/number of shares Return on equity: Net profit/average equity Dividend ratio: Dividend/share capital Liquidity ratio: Current assets/current liabilities

1The KILROY Group

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The dreams we realize are those of discovery, exploration, learning and friendship. We help our customers find the meaning of life by experiencing the world. We focus on young people but also welcome the "young in mind."

Traditional travel companies sell airline tickets and bookaccommodation. But the KILROY Group's products andservices encompass the whole travel experience - fromplanning the trip and seeking relevant information, tothe actual flight, accommodations, adventures, new cultures, and the memories and useful experiences toshare with others who also love to travel.

Adding value for the customerThe most important business driver for the KILROYGroup is adding relevant value for our customers.We know what's in and what's out; what's hot, and what's not.

This requires staff competence, which is a fundamentalcomponent of our service offering. We express thiscompetence directly through our sales consultants, andindirectly through our various Web sites. This makes usa highly appreciated authority in our niche segments.

To this, we add our reliable brands and clear segmenta-tion, which makes the KILROY Group stand out in avast and highly competitive marketplace.

Cost efficiencyAdding value for our customers at the lowest possiblecost is our second-most important business driver.Travel is a low-margin industry, and it's only possible tomaintain a competitive edge by constantly improvingproductivity.

The KILROY Group defines the Web as the customer'sfirst point of contact. Technology and simplicity are thekeys to improved efficiency, and we have over the past

years made substantial investments in IT and Webdevelopment to support this business philosophy.

Focus on performanceOur third business driver is focusing on both personaland corporate achievements. Thus, the KILROY Groupis divided into three business units, which all have fullprofit/loss responsibility:

KILROY Individual Travel, with core focus on studentsand young people travelling individually. It consists of KILROY Explorer, specialising in long-haul travel by providing superb personal service and destination knowledge to customers, and KILROY Online, which sells flight tickets and specific non-flight products via the Internet.

KILROY Group Travel, with core focus on youth and students travelling in groups for educational, recreational and other organised purposes.

MyPlanet, serving only the members of the MyPlanet Friendship Societies.

Each business unit is monitored with specific key performance indicators, and these are reflected in theobjectives and action plans for each individual staffmember.

All three business units have the same fundamental strategic pillars, defined as the KILROY M A R C H:

Market leadership - Being the leading player in the segments we serve.

Availability - Offering the customer the most conveni-ent and cheapest distribution access at any given time.

Relevance - Adding value for the customer in accordance with his or her preferences.

Cost efficiency - Streamlining the operation to document cost efficiency at the highest industry level.

Human resources - Having the best and most competent staff serving our customers better thananyone else.

Industry dynamics The future of the travel industry still seems to be turbulent with a number of structural changes ahead.But in the KILROY Group, we believe that the dream of exploring the world is a growing and inexhaustibletrend, especially in the segments we serve. The custo-mers' demand for individualized and specialized services is expected to grow faster in the years tocome. Exploiting the growing importance of theInternet, and being able to swiftly adapt to the rules ofthe industry's new business models, will be the keys totravel companies' future success.

This is why we in the KILROY Group continuouslyadjust our business platforms to anticipate and adapt to market dynamics. We have defined the Web as ourcustomers' first point of contact, reflecting the fact thatthe Web is by far our target groups' most importantsource of inspiration.

We constantly streamline our business processes inorder to reduce transaction costs. We analyse our customers' needs and preferences in order to be ableto add and deliver the right value. We constantly investin our brands to underline our reliability for customers ina highly turbulent market. And we continue to build evercloser relationships with suppliers, who are committedto our philosophy of serving niche markets in a uniqueand dedicated way.

The KILROY Group is prepared to play an active role inthe consolidation process that is expected to take placein the travel industry in the coming years.

KILROY travels International A/S has a very special mission called, "Dreams … we make them happen!" We are a group of travel companies, based in Europe, who specialises in value-added travel for students, young people and members of the MyPlanet Friendship Societies.

Dreams … we make them happen!The KILROY Group

2 The KILROY Group


Group Structure and Locations, May 2005

KILROY group travel A/SCopenhagen, Holstebro

(Denmark)

KILROY travels Denmark A/SCopenhagen, Odense, Aalborg, Aarhus

KILROY travels Norway ASOslo, Bergen, Stavanger, Tromsø,

Trondheim, Kristiansand

KILROY travels Sweden ABStockholm, Gothenburg, Lund, Malmö,

Umeå, Uppsala, Linköping, Örebro

KILROY travels Netherlands B.V.Amsterdam, Groningen, Rotterdam

Utrecht, Leiden

MyPlanet International A/SHolstebro, Copenhagen

(Denmark)

MyPlanet Norway ASOslo

(Norway)

MyPlanet Sweden ABStockholm, Gothenburg

(Sweden)

KILROY group travelStockholm(Sweden)

KILROY Group Travel

KILROY travels International A/S(Denmark)

Corporate Functions

Legal structure cannot be read from the above. 3The KILROY Group

OY KILROY travels Finland ABHelsinki, Tampere, Turku, Jyväskylä

MyPlanet Australia PTY Ltd.Sydney

(Australia)

KILROY group travelHelsinki(Finland)

KILROY group travelOslo

(Norway)

KILROY Individual Travel MyPlanet(Friendship Societies)

Business Units


Report of the Board of DirectorsThe general demand for travel recovered somewhat in 2004 but the aggressive price wars between general commercial airlines and low-cost carriers on the European market continued to put price pressure on flight tickets. Despite these challenges, the KILROY Groupmanaged to improve financial results from its losses in 2003 through restructuring, cost efficiency and focus on the Web as the primaryinterface with customers.KILROY Group turnover in 2004 reached DKK 1,209million, a marginal drop of 4% from DKK 1,260 million in 2003, mainly driven by the continuedprice pressure on short-haul traffic. EBITDAreached DKK 21.4 million, an increase from DKK19.0 million in 2003, resulting in an EBIT of DKK 2.1million, compared to an EBIT of DKK -3.2 million in2003.The KILROY Group closed the year 2004 witha profit before tax and extraordinary items of DKK5.2 million. After extraordinary items, the EBTresult ended with DKK 1.3 million.

Market conditions and the KILROY GroupDue to the introduction of aggressive business modelsby the different players in the travel value chain, the KILROY Group's consolidated turnover, gross profit and EBITDA did not fully live up to our expectations.However, restructuring of the internal business models,with special focus on the business unit KILROYIndividual Travel, continues at an accelerated pace andhas begun to show positive results.

The belligerent market penetration of the low-cost carriers continued in 2004 as the low-cost carriers forced traditional carriers to restructure their businessmodels while fighting for market share.Yield has gene-

rally declined, and the majority of airlines have moved toa 0-commission platform.

Demand for air travel increased in a number of marketsin 2004, but the recent years' drop in the yield per customer has put pressure on the KILROY Group tochange its product mix towards more profitable, non-flight products. Due to our extensive focus on product mix, the KILROY Group managed to maintainthe 2003 gross profit percent into 2004.

The Internet has firmly established itself as a key distribution channel for travel products, showing highdouble-digit growth rates. The KILROY Group sees theWeb as the first point of customer contact, and the growing traffic figures on different KILROY Web sitesconfirm this business strategy.

Also as a result of market competition and the trend inonline services, the business unit KILROY IndividualTravel has implemented a new business model thatsplits the unit into two areas: KILROY Explorer, whichfocuses primarily on long-haul traffic, and KILROYOnline, which sells air tickets and non-flight productsonline.

Technology is the main driver for improved productivity

in the travel industry, and is one of the main drivers inthe KILROY Group's cost reduction programs. In 2004,capacity costs were reduced in line with our strategy ofbringing transaction costs down to make KILROY one ofthe most competitive players in the market. Total produc-tivity increased 7% in 2004 as expected. To support theproductivity drive, further investments in IT technologyand Web development were made in all three businessunits.

The business unit MyPlanet also gave priority to technology and organisational investments related to thedevelopment of a new customer relations management(CRM) system, which was fully implemented in mid-2004. The business unit KILROY Group Travel focusedon finalizing the development of a new, fully integratedfront, mid and back office system.Total investment in 2004 reached DKK 11 million, mostof which was IT/Web-related, creating a platform for further productivity increases in the future.

Industry restructuringThe travel industry is restructuring rapidly, and changesin the KILROY Group's business models have receivedurgent priority. KILROY Individual Travel has, as mentioned above, split into two cost-effective business

4 The KILROY Group


areas, and MyPlanet has given priority to the develop-ment of both its member-based CRM and new, profita-ble membership services. 2004 was MyPlanet's first fullyear of activity on the Australian market.The business unit KILROY Group Travel has focused on using the Web to add further value to its existing services. The business unit has also seen very positivegrowth related to the new business area, skiing holidays, introduced in 2003 and marketed under theTEAM BENNS brand.

Adding valueAll three KILROY business units are fully dedicated tosegmentation and adding value. The focus on nichesegments supports the development of competenciesthat add value for customers. This is a process whichhas become even more important in response to thepressure on flight prices.

Our one-stop shopping philosophy was enhanced further in all business units in 2004. It builds on understanding the customer, technology support andstaff competence, irrespective of whether the customercontact is online or through traditional channels. Wehave seen positive results both in product mix and customer satisfaction with our philosophy.

Suppliers and the KILROY GroupIn general, airlines are increasingly bypassing travelagencies in order to obtain direct customer contact.This development has also hit the KILROY Group.The clear niche focus of all three business units hashowever put us in a position to strengthen our specialpartnerships with a range of airlines who recognise theefficiency with which KILROY serves our - and their -customers.

A number of major airlines have terminated their specialSATA youth & student ticket agreements, which have put pressure on the part of financial income categorisedunder other income. However, KILROY has negotiatednew ticket concepts, and other airlines have entered intoSATA ticket agreements. In 2004 approximately 2/3 ofKILROY Individual Travel's flight turnover was still generated from special youth and student arrange-ments. Close cooperation with non-flight suppliers wasalso intensified in 2004, and the KILROY Group signeda number of international partnership agreements.

Risk to the businessThe major risk to the travel industry is reduced profitability in the value chain, caused by continuing low flight prices and low yield, overcapacity in flightseats and customers serving themselves via theInternet. The only short-term way out of this dilemma is an increase in demand, and this is finally appearing in several key markets. The niche segments the KILROYGroup serves are expected to regain demand morestrongly than the average market segments.

The Association for Tourism and Leisure Education(ATLAS) has forecast that the student and youth travelmarket would increase its share of all tourism journeysin 2005. The mature and more affluent customers thatMyPlanet serves are also predicted to increase their tra-vel activities in the coming years.Despite the increasing demand, the major challenge ofreduced profitability per passenger remains. Thus, in thelong term, further restructuring and consolidation of thetravel industry must take place. The players who havebusiness models with the right balance between costefficiency, the ability to add relevant value, and ademand-driven structure will be the winners.The KILROY Group's operational restructuring andinvestments all aim at finding the strongest possibleposition in this new business reality.

Shareholder information63.4% of the shares in KILROY travels International A/Sare owned by the Real Estate Funds of the StudentUnion of the University of Helsinki (HYY). The RealEstate Funds of HYY is the parent corporation for thegroup of consolidated Finnish property and servicecompanies (HYY Group).

Axcel IndustriInvestor a.s., with 29.5%, is owned by ATP(Danish Labour Market Supplementary Pension Fund),FIH (Finance for Danish Industry), Investeringsselskabetaf 30.4.1992 (Radiometer's former primary sharehol-der), Kirkbi (Lego), NIB Capital (Holland), PKA (PensionFund Administration) and Nordea Bank Danmark.Nordic student organizations and others own the remaining 7.1% of KILROY travels International A/S.

Expectations for 2005Barring any major terrorist attacks, natural disasters oroutbreaks of epidemic diseases, our expectations for

2005 are moderately positive. Customer demands areexpected to grow stemming, from positive economic forecasts for our main markets, although theNetherlands in 2004 was still in the grip of recession.Interest rates are expected to slightly increase duringsecond half but remain relatively low, which will continueto hamper possibilities of major improvement in theGroup's financial income.

MyPlanet expects the customer demand for Australia/New Zealand and USA/Canada destinations to be further intensified during 2005. Thus a two-digits organicgrowth is expected. Continuing high focus on productmix and productivity will improve the MyPlanet profita-bility in 2005.

KILROY Group Travel is expected to continue its growthin Sweden, Norway and Finland. In Denmark, publiceducational budget cuts have had a negative impact, but part of the lost turnover will be regained throughnew product features under the TEAM BENNS brand,such as skiing trips. Productivity increases related to the implementation of a new IT platform have alreadybegun to materialise.

KILROY Individual Travel is expecting a turnover growthdriven mainly by the KILROY Online business model.Activities to maintain customer traffic are planned. Theyield per customer is still highly dependent on the grossprofit margin on flight products, so focus on non-flightproducts will be further intensified. Due to earlier IT investments, an increase in productivity is also expected in 2005.

For the KILROY Group as a whole, a slight decrease in gross profit margin is expected due to continuingpressure on flight prices. However, due to further productivity gain in all three business units, an increasein earnings is expected during 2005.

Management of the KILROY GroupOn 1 January 2005, the Board of Directors employed Claus H. Hejlesen as new Managing Director of KILROY travels International A/S. He replaced MogensJønck. Claus H. Hejlesen has previously worked for theKILROY Group (1990-2002).

Report of the Board of Directors (...continued)

5The KILROY Group


6 The KILROY Group

KILROY Individual Travel - kilroytravels.comMarket conditionsKILROY Individual Travel is the market leader in individualized travel for students and young people in the countries where we operate: Denmark, Finland,the Netherlands, Norway and Sweden. In total, KILROY Individual Travel operates 27 shops, six callcentres, an Internet booking engine and two serviceoffices, in Bangkok and Sydney.

In 2004 KILROY closed down its wholesale businessin Spain, as there was no longer a sustainable business platform for serving a "middleman" functionin selling student flight tickets to the travel agencies.

In the fourth quarter of 2003, KILROY Individual Travelimplemented a new business model, splitting into twobusiness areas called KILROY Explorer and KILROYOnline. KILROY Explorer focuses primarily on sellinglong-haul travel by providing superb personal serviceand destination knowledge to customers, at highlycompetitive prices, via KILROY shops and call centres.

KILROY Online sells flight tickets and specific non-flight products on the Internet, also at competitive

prices. In 2004 demand for travel increased in theNordic countries, especially in Denmark, where a taxreform and general economic optimism fuelled spen-ding. In the Netherlands, however, travel demanddecreased as a result of general recession in thatcountry.

Competition was still fierce in all markets. The contin-ued price war between traditional and low-cost airlinesdecreased air product prices and margins even furtherduring 2004, and continued to impact on the earningsof KILROY Individual Travel.

Business operationsKILROY Individual Travel is confident that its strategicroadmap and business model are the right solution for addressing the future challenges of this sector ofthe travel market. Although the business unit KILROYIndividual Travel has improved its business performan-ce during 2004, the delivered profitability is still at an unacceptable level.

KILROY Individual Travel managed to grow its marketshare on long-haul travel, but, the total turnover declined by 10%, as further market share in the

short-haul business was lost to low-cost carriers andtraditional airlines. The ratio between long-haul salesand short-haul sales is now in balance for futuregrowth.

Both sales and gross profit productivity per staff increased in 2004, fuelled by staff competence upgrade programmes, focus on selling the right products and reaping the benefits of a fully integratedfront-to-back IT platform.

Despite the continued decline in air ticket margins in2004, KILROY Individual Travel managed to maintainoverall margins at the same level as 2003. This waspossible due to a considerable increase in the sales of non-flight products with high margins, and toKILROY's successful renegotiation of terms with keystrategic airline partners. A capacity cost reductionprogramme generated more than DKK 15 million insavings in 2004.

The launch of the KILROY Explorer business hasbeen performing in accordance with expectations inboth turnover and earnings. KILROY Individual Travelwas able to increase the turnover on long-haul travel


7The KILROY Group

compared to 2003. In Denmark and Finland, KILROYsignificantly increased market share on long-haul travel,while in other markets, it was able to maintain or slightly increase market share.

The business unit KILROY Individual Travel appears to have found a sustainable market platform with theExplorer business approach.

KILROY Online, on the other hand, did not live up toexpectations either in turnover or earnings. Turnovergrew with double digits, but technical challenges duringhigh season prevented the growth that was anticipated.

The main technical challenges were eventually solved,so KILROY Individual Travel enters 2005 with the

confidence that online sales are back on track.

Web - the customer's first point of contactKILROY Individual Travel relies on the Internet as the customer's first point of contact. Thus, KILROY continued to invest in the KILROY Web site in 2004.

The main focus has been to encourage the sales offlight tickets and non-flight products, and to improve the content of the Web site to ensure that the curiouscustomer receives all relevant information about his orher travel needs.

Target GroupStudents and youth continue to be the core customersof KILROY Individual Travel's business. Other people

who still feel "young in mind," and subscribe to the KILROY way of travelling, are also welcome.KILROY Individual Travel will continue efforts to capturethe potential of this particular segment, which encom-pass first and foremost former KILROY customers.

Management: Claus H. Hejlesen, Managing Director


KILROY Group Travel - kilroygroups.com; team-benns.comMarket conditionsKILROY Group Travel is the market leader in the grouptravel segments in the Nordic countries of Denmark,Finland, Norway and Sweden. It specialises in youthand students travelling in groups for educational andother organised purposes. It consists of the brands KILROY Group Travel and TEAM BENNS, and servesmore than 150,000 passengers a year.

The general market demand in 2004 was stronger thanin 2003, but flight margins were still under considerablepressure from fierce competition.

Business operationsFinancial performance in all countries was highly positive in 2004 as a result of previous years' investments. This supported the KILROY Group Travelbrand position as a highly professional provider of educational trip concepts to the entire academic sector.

A new business area for TEAM BENNS - skiing holidays - is still developing positively, and the potentialfor future growth is promising. The flight ticket price waramong low-cost carriers continues to put pressure onmargins, but KILROY Group Travel has managed tocompensate for this by increasing productivity andintensifying partnerships with selected suppliers.

Implementation of a new, fully integrated IT businessand accounting system, ACE Tour, in 2003 and 2004has contributed to the increased productivity.

KILROY Group Travel has in 2004 implemented a revised Web strategy, making the Internet one of themain drivers for future business development and increases in productivity.

KILROY Group Travel's goal is to have the best andmost relevant products available. Thus, an integral part

of KILROY Group Travel's strategy is to maintain closecooperation and dialogue with the educational community. A range of new concepts and destinationswas launched again in 2004, through a broad portfolioof specialised catalogues, online marketing and theconstant upgrading of competence in all sales staff.

Management: Allan Qvist, Managing Director

8 The KILROY Group


MyPlanet - myplanet.comMarket conditionsMyPlanet serves the approx. 33,000 members of theMyPlanet Friendship Societies.

In 2004 MyPlanet experienced growth in all markets -Australia, Denmark, Norway and Sweden - and in allproduct areas - Australia, Canada, New Zealand andUSA. This contributed to business growth of around12%. Nevertheless, there is still room for expansion on Canada and USA, as market opportunities haveyet to be fully exploited.

Business operations2004 was the first full year of MyPlanet's activity onthe Australian market. Development has been in linewith expectations, and MyPlanet saw growth ininbound traffic from Scandinavian travellers, as well as outbound traffic to Scandinavia, in co-operationwith the Scandinavian Friendship Society of Australia.

MyPlanet's investment in 2003 in Bentours Int. Pty.Ltd., which is Australia's leading specialist in travel to Scandinavia, has been successful, both in terms of earnings and in co-operation in general. As a result,MyPlanet assumed the remaining 2/3 stake inBentours Int. Pty. Ltd. as of January 1, 2005, and

will operate both companies under the same manage-ment.

In Sweden, MyPlanet Education was in 2004 sold toKILROY travels Sweden in order to improve the business structure. MyPlanet Education's customersegment coincides with that of KILROY travels, somarketing opportunities are expected to be greaterunder the revised organisation.

MyPlanet's new customer relations management sys-tem (CRM) was fully implemented in the Scandinaviancountries in mid-2004, providing new opportunities forthe collection, organisation and utilisation of customerdata in sales and marketing. At the end of the year, MyPlanet launched a new Web site, which is linked tothe CRM system, and this will be marketed as the firstpoint of contact for customers.

MyPlanet will continue to enhance and improve itsWeb presence, as MyPlanet members of all agesmake increasing use of the Web. These new tools willhelp MyPlanet develop the activities and services defined in its strategy for differentiating itself in themarket. Also in 2004, MyPlanet published new travel catalogues - one for Australia/New Zealand and one

for Canada/USA. They are divided into inspiration andproduct sections, and stand out from other cataloguesin the market by expressing MyPlanet's passion andexpertise in these countries.

They also go deeper than traditional tourism brochu-res with themes that focus on "meeting the well-known, the lesser known and the completelyunknown."

In 2004 the two Friendship Societies in Norway merged into one - MyPlanet Friendship Society ofNorway. MyPlanet's collaboration with the FriendshipSocieties remains in sharp focus and both sides willcontinue to work at developing this unique concept,and to use technical tools in making member serviceseven more active.

Despite increasing pressure on margins for air ticketsand non-revenue bearing taxes, MyPlanet maintainedthe same satisfactory level of profitability as in 2003.

Management:Annelise Dam Larsen, Managing Director

9The KILROY Group


Shareholders’ equityThe share capital has increased to DKK 27.8 million,due to a subordinated convertible debt of DKK 10.0 million was converted from debt to equity.Free reserves from returned earnings total DKK 41.6 million. Total Group shareholders’ equityincreased to DKK 69.5 million at the end of the year,due to:

a capital increase of DKK 4.4 milliona net result 2004 of DKK 0.1 million

Dividends and dividend policyThe Board recommends no payment of dividend for 2004. Future dividends will be proposed with consideration for the KILROY Group’s expansion plans,continued consolidation and liquidity.

InvestmentsIn 2004, the KILROY Group made investments of DKK 11.0 million, of which DKK 8.3 million went to IT-related developments. The major part of the IT invest-ment was used for a new CRM-system in MyPlanet.

The significant amount spent on IT investments is part of the long-term growth strategy for the KILROY group.

Financial managementThe KILROY Group places liquid assets in the short-term money market, and in publicly traded government securities and mortgage backed bonds with a relatively short average maturity.

It is the policy of the KILROY Group that the liquidityratio always is above 100 in order to ensure that allshort-term liabilities can be paid immediately at anytime. It is also the policy that subsidiaries do not holdliquid assets in excess of those required for normaloperations, and they may not issue debt locally or make other financing arrangements/agreements.

The financial risks of doing business in many countries and currencies are managed according to the established policies to ensure that currency exposure is minimized to the extent possible.

KILROY travels International’s treasury function controls and hedges the consolidated foreign exchange exposure.

Established procedures for reporting are in place, as are limits for managing currency positions.

These policies ensure that financial instruments areused to limit risks. Subsidiaries operate primarily in their own local currencies.

In cases where the subsidiaries have foreign exchangeexposure, they hedge their exposure via the KILROYGroup’s corporate treasury function.

AuditingThe KILROY Group only uses internationally accreditedauditors.

HYY Group Annual ReportThe Annual Report of HYY Group Ltd, is preparedseparately and can be obtained from HYY Group Ltd,P.O. Box 1099, Mannerheimintie 5C, FIN-00101Helsinki, upon request.

The Annual Report of KILROY travels International A/Sis included in the HYY Group Ltd. Annual Report.

10 The KILROY Group

KILROY travels International A/S’ share of 2004 net result is DKK 0.1 million, compared with DKK -5.4 million in 2003.

2000 2001 2002 2003 2004

10

20

30

40 IT investmentsOther investments

mDKK


11The KILROY Group

Today, the Board of Directors and the Board ofManagement have adopted the Annual Report of KILROY travels International A/S for the year 2004.The Annual Report has been prepared in accordancewith the Danish Financial Statements Act. We consider

the applied accounting policies appropriate for theAnnual Report to give a true and fair view of theGroup’s and the parent Company’s financial position at 31 December 2004, as well as of the results of the Group's and the Company's operations and

consolidated cash flows for the year ended 31December 2004. We recommend that The AnnualReport be approved at the Annual General Meeting.

Copenhagen, 3 May 2005.

Auditor´s Report

We audited the Annual Report for the financial year1 January - 31 December 2004 prepared in accordancewith the Danish Financial Statement Act.The Annual Report is the responsibility of theCompany’s Board of Directors and Management.Our responsibility is to express an opinion on theAnnual Report based on our audit.

Basis of opinionWe conducted our audit in accordance with DanishAuditing Standards. Those standards require that we plan and perform the audit to obtain reasonable

assurance that the Annual Report is free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Annual Report.An audit also includes assessing the accounting policies used and significant estimates made by theBoard of Directors and Management, as well as evaluating the overall Annual Report presentation.We believe that our audit provides a reasonable basis for our opinion.Our audit did not result in any qualification.

OpinionIn our opinion, the Annual Report gives a true and fairview of the Group’s and the Parent Company’s financialposition at 31 December 2004 and of the results of theGroup’s and the Parent Company’s operations and consolidated cash flows for the financial year 1 January - 31 December 2004, in accordance with the Danish Financial Statements Act.

Copenhagen, 3 May 2005.

To the Shareholders of KILROY Group and the Parent Company

KPMG C. Jespersen KPMG Wideri Oy AB

Board of Directors

Statsautoriseret Revisionsinteressentskab

State Authorised Public AccountantSven Carlsen

State Authorised Public AccountantPer Lund

Authorised Public AccountantReino Tikkanen

ChairmanTapio Kiiskinen Kaj Storbacka Linnea Meder

Vice ChairmanJohn Dueholm Lars Liebst

(elected by staff)Lisbeth Rasmussen

Managing DirectorClaus H. Hejlesen

Board of Management

Management’s Statement


12 The KILROY Group

GeneralThe Annual Report for 2004 for KILROY travelsInternational A/S is presented in accordance with theprovisions of the Danish Financial Statements Act foraccounting class C companies.

The Annual Report has been prepared using the sameaccounting policies as previous years. The assets’residual values and useful lives have been reviewed.Consequently the estimated useful lives of goodwill inMyPlanet A/S and the corporate ERP-system has beenre-evaluated. The re-evaluation has had a positiveimpact on the fixed assets in the balance sheet anddepreciations in the profit and loss before tax for 2004of approx. DKK 3.8 mill.

Adjustments of key and comparison figures have notbeen made, as recognition and measurement are unchanged.

Consolidated AccountsThe consolidated accounts include the annual accountsof the parent company, KILROY travels InternationalA/S, and all subsidiaries that the parent companydirectly or indirectly controls.

The consolidated accounts are prepared by addingitems of a like nature in the accounts of KILROY travelsInternational A/S and its subsidiaries.

Subsidiary accounts that are included in the consolidated accounts are prepared in accordance with the accounting policies of the parent company.

Profit and loss statements of foreign subsidiaries areconverted into Danish kroner (DKK) using the averageexchange rates for the year. Balance sheet items areconverted at the exchange rate at the end of the year.

Exchange rate adjustments of the equity of foreign subsidiaries at the beginning of the year, and exchangerate adjustments of the profit and loss accounts fromaverage rates to year-end rates, are posted against theGroup shareholders’ equity. In the consolidation of the accounts, intercompany income and expenses,

intercompany accounts, and intercompany profits and losses are eliminated. The parent company’s share in a subsidiary is calculated as its share of the subsidiary’s net assets.

Companies in which the Group owns 20-50% of therespective company’s equity, but of which the Groupdoes not hold a controlling share, are referred to as affiliated companies. The value of the Group’s share iscalculated according to its share of the affiliated com-pany’s net assets.Entries relating to affiliated companies connected toKILROY travels International A/S and operated in con-junction with other shareholders are prorated in propor-tion to the size of the share, when compiling consolida-ted accounts. Upon acquisition of a subsidiary, theshare of the net assets is calculated according to theGroup’s accounting policies.

If the purchase price deviates from the value of the net assets, the difference is, to the extent possible, allocated to the assets or liabilities that have a higher or lower value.In addition, provisions are made for the expenses incurred at the time of purchase. Goodwill in connectionto aquisitions is capitalised and amortised over a maximum 20-year period.

Newly acquired or formed companies are included in the consolidated accounts from the purchase or establishment date.

Divested companies are included up to the date of disposal. Minority interests in subsidiaries’ profits andequity are stated separately in the consolidation of theGroup profit and shareholders’ equity.

Profit and Loss AcountTurnoverTurnover includes the year’s sales of travel productsand services. Revenues from individual travel productsare booked at time of invoicing, regardless of departuredate. Revenues from group travel products are bookedin the accounting period that coincides with the departure date of the trip.

Cost of products soldContains invoiced and accrued cost of travel relatedproducts, services and financial arrangements.

Income from shares in subsidiaries and affiliatedcompaniesPretax profits or losses in subsidiaries include the proportionate share of pretax profits or losses in thesubsidiaries’ net of intercompany profits.

The proportionate share of tax on the profit or lossesfor the year in subsidiaries is included in the item “Tax.”

TaxThe parent company is taxed jointly with a number ofwholly owned domestic and foreign subsidiaries. In theprofit and loss account, estimated tax takes intoaccount relief for taxes paid abroad and changes indeferred tax.

Prepaid corporate tax is entered in the balance sheetas a current asset.

Deferred tax is provided under the liability method, andcovers all temporary differences between accountingand tax values of the assets and liabilities.

Deferred tax is furthermore provided for re-taxation oftax deductible losses realised in non-Danish affiliatedcompanies, if the re-taxation is expected to be realisedby the affiliated companies departure from the Danish joint taxation scheme.

The tax value of tax loss carry-forwards will be set offagainst deferred tax liabilities to the extent that the taxlosses and other tax assets are expected to be utilisedin the future taxable income. Deferred tax is calculatedaccording to applicable tax laws and according to theexpected tax rate.

Extraordinary income/expensesIncome and expenses emerged from circumstanceswhich vary significantly from the operational travel business is adopted in the profit and loss account asextraordinary income/expenses.


13The KILROY Group

Balance SheetFixed assetsFixed assets are carried at historic cost less depreciation. Assets are written down if their value hasdepreciated and cannot be seen as appreciating in thenear future.

Depreciation is calculated on a straight line basis of the historic cost according to the following guidelines,based on the estimated economic life of the asset:

Software 2-7 yearsGoodwill 5-20 yearsLand and buildings 33-50 yearsLeasehold improvements 5 yearsIT and other equipment 2-5 years

Minor assets below DKK 10,800 are posted as expenses in the profit and loss account.

Participating interests in subsidiaries and affiliated companiesParticipating interests in subsidiaries are valued according to the equity method at the proportionateshare of the net assets.

InventoriesGoods for resale are booked at purchase price.Write-downs are made according to obsolescence and other forms of value depreciation.

Accounts receivableAccounts receivable are stated net of provisions for possible losses.

Bonds and securitiesPublicly traded bonds are stated at the market value atyear end. Realised and unrealised gains and losses areincluded in the profit and loss account.

Other provisionsOther provisions include an estimated liability, which will presumably lead to an outflow of resources.

DividendDividend is stated in the accounts at the time when it is decided by the company at the Annual GeneralMeeting, the company thereby having incurred a liability. The dividend which is proposed for distributionis therefore stated separately in the Equity.

Rent and leasingThe parent company and the Group have entered into rental and leasing agreements for offices and equipment for multi-year periods.

Rental and leasing expenses are stated in the profitand loss account for the applicable period.The aggregate rental and leasing liability is statedunder contingent liabilities.

Currency conversionAccounts in foreign currency are stated at theexchange rate at year end. Gains and losses are included in cost of products sold. Currency contracts to hedge forward income and expenses are booked inthe profit and loss account at market values.

Currency contracts to hedge incomes and expensesalready in the annual report are included in the profitand loss at market value of the currency contract.Changes in the value of the hedging instrument aftertax are stated directly in the Equity until the hedgedasset is realised.

Cash Flow StatementThe Cash Flow Statement is presented according tothe indirect method based on the operating profit.The Cash Flow Statement shows the Group’s cash

flow for the year, and is divided into cash flow from operating, investing and financial activities.

Cash flow from operating activities covers cash flowfrom the year’s operations, adjusted for operating itemsof a noncash nature and changes in working capital.

Working capital includes current assets less liquidassets and current, non-interest bearing liabilities anddividends.

Cash flow from investing activities covers cash flow inconnection with the purchase and sale of fixed assets,including participating interests and other long-termsecurities.

Cash flow from financing activities covers payments toand from shareholders, together with the raising of andrepayment of interest bearing liabilities.

Liquid assets are cash holdings, money market deposits in banks, and marketable securities statedunder current assets.


14 The KILROY Group

2000 2001 2002 2003 2004

500

1000

1500

TurnovermDKK

2000 2001 2002 2003 2004

10

20

30

40

EBITDAmDKK

2000 2001 2002 2003 2004

25

50

75

100

EquitymDKK

2000 2001 2002 2003 2004

150

300

450

600

FTE’s

Avg. no. ofemployees


15The KILROY Group

2004 2003 2004 2003Note: kDKK kDKK kDKK kDKK

1 Turnover 1,208,938 1,259,629 139,507 252,8892 Other operating income 2,366 3,293 2,366 3,293

Cost of products sold -960,320 -1,003,009 -125,054 -228,779Gross profit 250,984 259,913 16,819 27,043

3 Sales and administrative costs -93,280 -90,452 -2,683 -2,9134 Personnel costs -136,773 -150,437 -20,760 -22,0245 Other income 502 0 0 0

EBITDA 21,433 19,024 -6,624 2,466

6 Depreciation -19,351 - 22,216 -1,609 -3,178 EBIT 2,082 -3,192 -8,233 -712

10 Result from shares in affiliated companies - - 9,578 -6777 Financial income, net 3,081 -509 -697 -2,721

Result before extraordinary income/expenses 5,163 -3,701 649 -4,110

8 Extraordinary income/expenses -3,887 0 0 0EBT 1,276 -3,701 649 -4,110

9 Tax -510 -1,250 -510 -1,250Net profit 766 -4,951 139 -5,360

11 Gain/loss attributable to minority interests -627 -409

Result attributable to KILROY travels International A/S 139 -5,360

Proposed appropriation of net result:Dividends 0 0Retained earnings 139 -5,360

139 -5,360

Group Parent

1 January - 31 December


16 The KILROY Group

ASSETS 2004 2003 2004 2003 Note: kDKK kDKK kDKK kDKK

FIXED ASSETS

Software 32,815 34,395 0 0Goodwill 23,930 27,659 13,179 14,365

6 Intangible fixed assets 56,745 62,054 13,179 14,365

Land and buildings 1,167 1,697 0 0Leasehold improvements 3,393 5,576 392 574IT hardware and other equipment 7,243 10,889 204 445

6 Tangible fixed assets 11,803 18,162 596 1,019

10,17 Shares in affiliated companies - - 46,057 38,27910,17 Shares in associated companies 1,744 627 0 0

Other securities 36 27 0 0Financial fixed assets 1,780 654 46,057 38,279

TOTAL FIXED ASSETS 70,328 80,870 59,832 53,663

CURRENT ASSETS

Inventories 5,855 5,838 335 0Trade debtors 17,516 14,153 1,159 962Amounts due from affiliated companies 0 0 30,967 55,773Corporate tax 518 26,714 0 13,869Other receivables 11,222 8,157 4,400 1,522Prepaid expenses and accrued income 13,938 11,252 1,352 -Total receivables 43,194 60,276 37,879 72,126

Bonds and securities 7,890 29,234 7,890 28,884

Cash at bank and in hand 205,173 186,751 97,907 98,008

TOTAL CURRENT ASSETS 262,112 282,099 144,011 199,018

TOTAL ASSETS 332,440 362,969 203,843 252,681

Group Parent

31 December


17The KILROY Group

LIABILITIES 2004 2003 2004 2003 Note: kDKK kDKK kDKK kDKK

EQUITYShare capital 27,839 23,450 27,839 23,450Retained earnings 41,621 35,389 41,621 35,389Proposed dividend 0 0 0 0

69,460 58,839 69,460 58,839Minority interests 1,736 896 - -

11 TOTAL EQUITY 71,196 59,735 69,460 58,839Convertible debt, subordinated 0 10,000 0 10,000

71,196 69,735 69,460 68,839

PROVISIONS12 Other provisions 3,153 12,400 3,000 12,4009 Deferred tax 8,934 12,649 10,544 16,093

TOTAL PROVISIONS 12,087 25,049 13,544 28,493

LONG-TERM LIABILITIESBank loan 10,000 10,000 10,000 10,000 Mortgage 0 150 0 0

13 TOTAL LONG-TERM LIABILITIES 10,000 10,150 10,000 10,000

CURRENT LIABILITIESBank loan 0 20,000 0 20,000Short-term mortgage 0 150 0 0Trade creditors 133,861 146,126 57,241 74,785Amounts owed to affiliated companies 181 154 48,258 44,513Other liabilities 18,243 18,267 3,313 6,051Accrued liabilities & prepaid income 8,155 9,170 2,027 0

14 Advance payments 78,717 64,168 0 0

TOTAL CURRENT LIABILITIES 239,157 258,035 110,839 145,349

TOTAL LIABILITIES 332,440 362,969 203,843 252,681

Group Parent

15 Contingent liabilities and secured debt16 Credit facilities

17 Affiliated/associated companies18 Related parties

31 December


18 The KILROY Group

2004 2003 kDKK kDKK

EBIT 2,082 -3,195Adjustments for non-cash itemsDepreciation 19,351 22,216Exchange rate and other adjustments 381 -4,881Working capitalChange in inventories -17 1,135Change in receivables 17,080 -11,611Change in trade creditors -12,265 -64,889Change in other liabilities 10,404 338

Cash flow from operating activities before financial items 37,016 -60,884Net interest income, etc. 3,081 -509Extraordinary items -3,887 0

Cash flow from operating activities 36,210 -61,393

Net purchase of plant, operating equipment, etc. -7,706 -18,235Purchase/sale of long-term securities -1,126 -627

Cash flow from investment activities - 8,832 - 18,862

Own shares 0 -131Establishment of long term loans 0 20,000Repayment of debt -30,300 -150Dividends paid/received 0 -19,982

Cash flow from financing activities -30,300 -263

Net change in liquid assets -2,922 -80,518

Cash at bank, in hand, and bonds and securities at Jan. 1 215,985 296,503

Cash at bank, in hand, and bonds and securities at Dec. 31 213,063 215,985

Financial resources Cash at bank, in hand, and bonds and securities 213,063 215,985Unused credit facilities 31,100 22,883

Financial resources 244,163 238,868

Not all figures above can be found directly in the Annual Report.

Group

1 January - 31 December


19The KILROY Group

1.TURNOVER 2004 2003 2004 2003kDKK kDKK kDKK kDKK

Sales through affiliated companies 1,188,945 1,214,839 139,023 244,210Sales through agents 19,993 44,790 484 8,679Total turnover 1,208,938 1,259,629 139,507 252,889

The turnover originates as follows: Nordic region DKK 1,137 million (2003: DKK 1,170 million), other regions DKK 72 million (2003: DKK 90 million).

2. OTHER OPERATING INCOMEIn order to give a true and fair view of primary operations compared with the travel industry in general, this section also includes a fixed, defined portion of total financial income (2004: DKK 2,366 thousand, 2003: DKK 3,293 thousand). The reason is that the parent company, KILROY travels International A/S, has a specially developed business concept that distinguishes it from the rest of the travel industry in that the company’s purchasing agreements, primarily for airline products, carry a direct interest advantage while also requiring additional costs for administration and sales.

3. FEES TO AUDITORS APPOINTED BY THE GENERAL MEETING 2004 2003 2004 2003kDKK kDKK kDKK kDKK

Statutory audit 1,588 1,771 436 594Other fees 855 769 527 419 Total auditor fees 2,443 2,540 963 1,013

4. PERSONNEL COSTS 2004 2003 2004 2003kDKK kDKK kDKK kDKK

Salaries and wages 117,166 128,071 19,997 21,210Social security contributions 9,895 12,270 212 228Pensions 3,373 3,540 0 0 Other personnel costs 6,339 6,556 551 586

Total personnel costs 136,773 150,437 20,760 22,024

Salaries and social security contributions to management, plus fees to the Board of Directors, totaled DKK 2,892 thousand (2003: DKK 2,434 thousand) of the total sum. In 2004 the Group employed an average of438 people, full time equivalent (2003: 489). In 2004 the parent company employed an average of 48 people, full time equivalent (2003: 53).

5. OTHER INCOME 2004 2003 2004 2003kDKK kDKK kDKK kDKK

Sales of shares MyPlanet 522 0 0 0Other -20 0 0 0

Total other income 502 0 0 0

Group

Group

Group Parent

Group Parent

Parent

Parent


6. FIXED ASSETS (GROUP) Software Goodwill Land & Leasehold IT and other Total buildings improvements equipment

Cost at Jan. 1 65,317 48,161 2,777 20,608 87,862 224,725Reclassification 139 0 0 0 -139 0Exchange rate adjustments 17 73 0 69 259 418Additions in year 8,254 0 158 387 2,209 11,008Disposals in year -34 -1,814 -885 -1,031 -4,241 -8,005Cost at Dec. 31 73,693 46,420 2,050 20,033 85,950 228,146

Depreciation at Jan. 1 -30,922 -20,502 -1,080 -15,032 -76,973 -144,509Reclassification -107 0 0 0 -67 -174Exchange rate adjustments -15 -33 0 -71 -287 -406 Disposals in year 33 1,162 274 972 4,217 6,658 Depreciation in year -9,867 -3,117 -77 -2,509 -5,597 -21,167 Depreciation at Dec. 31 -40,878 -22,490 -883 -16,640 -78,707 -159,598

Book value at Dec. 31, 2004 32,815 23,930 1,167 3,393 7,243 68,548

Book value at Dec. 31, 2003 34,395 27,659 1,697 5,576 10,889 80,216

The official property tax assessment for the Group’s Danish properties, which are carried at DKK 1,200 thousand, was DKK 2,010 thousand at Jan. 1, 2003.1) Depreciations on fixed assets:

Included in 2004 profit and loss ‘COST OF PRODUCTS’ 1,816 Included in 2004 profit and loss ‘DEPRECIATIONS’ 19,351

Total Depreciations IT and other equipment 21,167

6. FIXED ASSETS (PARENT) Software Goodwill Land & Leasehold IT and other Total buildings improvements equipment

Cost at Jan. 1 0 27,294 0 1,558 3,716 32,568Additions in year - 0 0 0 0 0Disposals in year - 0 0 0 -250 -250 Cost at Dec. 31 - 27,294 0 1,558 3,466 32,318

Depreciation at Jan. 1 0 -12,929 0 -984 -3,271 -17,184Disposals in year 0 0 0 0 250 250Depreciation in year 0 -1,186 0 -182 -241 -1,609 Depreciation at Dec. 31 0 -14,115 0 -1,166 -3,262 -18,543

Book value at Dec. 31, 2004 0 13,179 0 392 204 13,775

Book value at Dec. 31, 2003 0 14,365 0 574 445 15,384

1)

20 The KILROY Group


7. FINANCIAL INCOME, NET 2004 2003 2004 2003kDKK kDKK kDKK kDKK

Financial income 4,712 4,352 5,424 4,048Financial expenses -1,631 -4,861 -6,121 -6,769

Financial income, net 3,081 -509 -697 -2,721

Of the Group’s financial expenses, DKK 293 thousand is interest to HYY Group Ltd. (2003: DKK 0 thousand).Of the parent company’s financial income, DKK 933 thousand is interest for affiliated companies (2003: DKK 1,458 thousand).Of the parent company’s financial expenses, DKK 1,523 thousand is interest for affiliated companies (2003: DKK 1,860 thousand).

9.TAX 2004 2003 2004 2003kDKK kDKK kDKK kDKK

Current tax charge to parent company 0 0 0 0Adjustments to previous year’s tax charge -41 -886 -41 -886Change in deferred tax -5,549 769 -5,549 769

-5,590 -117 -5,590 -117

Portion of tax charge to subsidiaries 4,266 -709 6,100 1,367Change in deferred tax for subsidiaries 1,834 2,076

Total Tax 510 1,250 510 1,250

Deferred tax primo 12,649 11,342 16,093 15,324Change in deferred tax, net -3,715 1,307 -5,549 769

Deferred tax ultimo 8,934 12,649 10,544 16,093

The deferred tax liability is based on the temporary difference between the book value and the statutory value of assets and liabilities. The parent company is taxed jointly with the Danish subsidiaries and some ofthe foreign subsidiaries. The parent company and the consolidated subsidiaries share joint and several responsibility for tax liabilities from their consolidated income.

In 2004, DKK 1,332 thousand (2003: DKK 3,977 thousand) is paid as corporate tax in the Group.In 2004, DKK 0 thousand (2003: DKK 2,524 thousand) is paid as corporate tax in the Parent company and the consolidated subsidiaries.

Group Parent

Group Parent

8. EXTRAORDINARY INCOME / EXPENSES

In 2004 KILROY travels Netherlands was involuntarily part of a large, organised crime fraud case. Consequently a loss of DKK 3,887 thousand has been realised.

21The KILROY Group


2004 2003 2004 200310. SHARES IN ASSOCIATED/AFFILIATED COMPANIES kDKK kDKK kDKK kDKK

Cost at Jan. 1 627 0 74,334 60,667Purchase of shares and capital contributions 0 627 - 13,667Sale of shares 0 0 0 0 Cost at Dec. 31 627 627 74,334 74,334

Writedowns at Jan. 1 0 0 -36,055 -33,062Exchange rate adjustments -82 0 95 -577Profit before tax 1,713 0 9,578 -677Tax of the year -514 0 -6,100 -1,367Dividends from subidiaries 0 0 -2,190 -372Writedowns at Dec. 31 1,117 0 -34,672 -36,055

Adjustments (negative equity, affiliated companies) 0 0 6,395 0Book value at Dec. 31 1,744 627 46,057 38,279A list of affiliated companies is shown on page 24.

11. EQUITY 2004 2003 2004 2003KILROY Group’s share of equity: kDKK kDKK kDKK kDKK

Share capital at Jan. 1 23,450 23,450 23,450 23,450Capital increase 4,389 0 4,389 0 Share capital at Dec. 31 27,839 23,450 27,839 23,450

Retained earnings at Jan. 1 35,389 45,744 35,389 45,744Share premium 5,903 0 5,903 0 Own shares 0 -131 0 -131 Hedging future -1 4,309 -1 -4,309 Exchange rate and other adjustments 191 555 191 555Net result for the year 139 -5,360 139 5,360 Retained earnings at Dec. 31 41,621 35,389 41,621 35,389

Dividend at Jan. 1 0 20,000 0 20,000Paid during year 0 -20,000 0 -20,000 Dividend at Dec. 31 0 0 0 0

Company equity at Dec. 31 69,460 58,839 69,460 58,839

Minority shareholders’ share of equity at Jan. 1 896 487Additions/Disposals 384 0 Dividend paid -150 0Exchange rate adjustment -22 0Share of net result 627 409Minority shareholders’ share of equity at Dec. 31 1,736 896

Total Group shareholders’ equity 71,196 59,735

The share capital is divided in shares of DKK 100 each or multiples thereof, totaling DKK 27,839 thousands.

Group (associated)

Group

Parent (affiliated)

Parent

22 The KILROY Group


12. OTHER PROVISIONSMainly accrued cost that is expected to mature in future years (later than 2005).

13. LONG-TERM LIABILITIESGroup long-term liabilities have a total value of DKK 10,000 thousand (2003: DKK 10,150 thousand) which is due in the period 2006-2010.Parent long-term liabilities have a total value of DKK 10,000 thousand (2003: DKK 10,000 thousand) which is due in the period 2006-2010.

14. ADVANCE PAYMENTSPrimarily include prepayments from travel ordered for 2005.

15. CONTINGENT LIABILITIES AND SECURED DEBTThe Group has entered into rent and lease obligations with remaining terms of up to 10 years. Rent and lease payments in the period of the agreements total DKK 38,564 thousand (2003: DKK 47,355 thousand). In total DKK 16,567 thousand is due in 2005.The KILROY Group companies are from time to time involved in disputes, as it is usual in our business and in the travel business in general. Recently the VAT authority in Spain replied negatively to the case towards KILROY travels Spain, and an appeal has been lodged. The claim is approximately DKK 3 mill. plus interest, covering the period 1995-2001. Based on analysis and opinions from external legal advisors of the factual and juridical aspects, it is the management’s belief that the Group does not risk any significant liabilities in respect to this particular case.The parent company has entered into rent and lease obligations with remaining terms of up to 3 1/2 years. Rent and lease payments in the periods of the agreement total DKK 4,006 thousand (2003: 5,911 thousand). In total DKK 1,101 thousand is due in 2005.

16. CREDIT FACILITIES 2004 2003 2004 2003 kDKK kDKK kDKK kDKK

Bank guarantees "on balance" 48,714 60,635 42,443 53,235 Bank guarantees "off balance" 22,491 16,100 - -Bank guarantees on behalf of subsidiaries - - 27,954 23,500 Parent guarantees on behalf of subsidiaries 3,157 10,407 3,157 10,407

Total credit facilities 74,361 87,142 73,554 87,142

At year-end, the KILROY Group had undrawn committed credit facilities amounting to DKK 31 million (DKK 23 million in 2003).

Parent Group

23The KILROY Group


17. SPECIFICATION OF AFFILIATED/ASSOCIATED COMPANIES Nominal Capital Proposed Currency Share Capital share dividend 2004

COMPANY: thousands thousands Local currency

MyPlanet Holding A/S (Copenhagen) DKK 1,000 100% 4,800 MyPlanet International A/S (Holstebro) DKK 500 90% 4,000

MyPlanet Australia Pty (Sydney) AUD 125 100% -MyPlanet Norway AS (Oslo) NOK 250 100% -MyPlanet Sweden AB (Gothenburg) SEK 100 100% -Bentours International Pty Ltd. (Sydney) AUD 27 100% -

KILROY travels Denmark A/S (Copenhagen) DKK 2,950 100% 2,000

KILROY travels Norway AS (Oslo) NOK 4,000 100% -KILROY travels Trondheim AS (Trondheim) NOK 2,000 100% -

KILROY travels Sweden AB (Stockholm) SEK 2,500 100% 860

OY KILROY travels Finland AB (Helsinki) EUR 336 100% 110

KILROY travels Netherlands B.V. (Amsterdam) EUR 1,817 100% -

KILROY travels Spain S.A. (Madrid) EUR 120 100% -

KILROY Invest A/S (Copenhagen) DKK 1,000 100% -

KILROY group travel A/S (Copenhagen) DKK 1,100 100% -

18. RELATED PARTIESRelated parties are considered to be the HYY Group Ltd, P.O. Box 1099, Mannerheimintie 5C, FIN-00101 Helsinki which is in control and owns 63.4% of the shares in KILROY travels International A/S. Other related parties are considered to be Axcel Industrilnvestor a.s. Sankt Annæ Plads 10, DK-1250 Copenhagen K, Denmark owing 29.5% of the shares, the management of KILROY travels International A/S and affiliated companies.

The KILROY Group has not had any material transactions with the related parties, except the subordinated loans, which are not eliminated in the Group accounts.

24 The KILROY Group


25The KILROY Group

As of 3 May 2005

Board of Directors

The Board of Directors and Management executive positions outside KILROY travels International A/S.

Tapio KiiskinenChairmanMember of the Board of Directors of Kapiteeli Plc

Member of the Board of Directors of Saariselkä Osuuskunta

Member of the Finnish Association of Professional Board Members

John DueholmVice ChairmanExecutive Vice President, SAS Group

Member of the Board of Directors of Lindorff A/S

Dr. Kaj StorbackaFounder and Chairman of the Board of Directors of Vectia Ltd., Helsinki.

Chairman of the Board of Directors of Learning Systems Oy, Helsinki.Member of the Board of CERS Centre for Relationship, Marketing and ServiceManagement at the Swedish School of Economics and Business Administration,Helsinki.

Member of the Board of Directors of Inspecta Ltd., Helsinki.

Member of the Board and the Executive Committee of SAMA (Strategic AccountManagement Association), Chicago.

Lars LiebstCEO, Tivoli A/S

Member of the Board of Directors of A/S Th.Wessel & Vett, Magasin du Nord andEntertainment A/S, and of Illum A/S

Linnea MederChief Executive Officer, HYY Group, Helsinki.

Financial Director, The Student Union of the University of Helsinki (HYY)

Lisbeth Rasmussen*Supervisor, KILROY ServiceKILROY travels International A/S

* Elected by Staff

Board of ManagementClaus H. HejlesenManaging Director


26 The KILROY Group

Management

KILROY travels International A/S

Group ManagementClaus H. HejlesenManaging DirectorKILROY travels International A/S

Anne-Marie HertzDirector Corporate Financial and ITKILROY travels International A/S

Annelise Dam LarsenBusiness Unit DirectorMyPlanet

Allan QvistBusiness Unit DirectorKILROY Group Travel

Claus H. HejlesenBusiness Unit DirectorKILROY Individual Travel

Corporate FunctionsHenrik KaltoftManager, Corporate FinanceKILROY travels International A/S

Michael Vestergaard NobsController & Cash ManagerKILROY travels International A/S

Bo LindegaardManager, Corporate ITKILROY travels International A/S

Affiliated companies

Managing DirectorsRune FeltmanManaging DirectorKILROY travels Denmark A/SKILROY travels Norway A/S

Kristiina HoltariManaging DirectorOY KILROY travels Finland AB

Henrik KaltoftManaging DirectorKILROY travels Netherlands B.V.

Monica MurphyManaging DirectorKILROY travels Sweden AB

Allan QvistManaging DirectorKILROY group travel A/S

Annelise Dam LarsenManaging DirectorMyPlanet International A/S, MyPlanetSweden AB, MyPlanet Norway A/S and MyPlanet Australia Pty. Ltd.

Anne-Marie HertzManaging DirectorKILROY travels Spain S.A. andMyPlanet Holding A/S

Claus H. HejlesenManaging Director KILROY Invest A/S

Member ofInternational Student TravelConfederation (ISTC)Federation of International Youth TravelOrganisations (FIYTO)

Main BankNordea Bank Danmark A/SStrandgade 3DK-0900 Copenhagen C Denmark

AuditorsKPMG C. JespersenStatsautoriseret RevisionsinteressentskabBorups Alle 177DK-2000 FrederiksbergDenmark

KPMG Wideri Oy AbMannerheimintie 20 BFIN-00100 HelsinkiFinland

AttorneyKromann ReumertSundkrogsgade 5DK-2100 Copenhagen ØDenmark


27The KILROY Group

As of 3 May 2005

KILROY travels International A/SKnabrostræde 8DK-1210 Copenhagen KDenmarkTelephone:+ 45 33 48 07 00Telefax: + 45 33 48 07 77Mail: [email protected]: www.kilroytravels.com

KILROY travels Denmark A/SSkindergade 28DK-1159 Copenhagen KDenmarkTelephone: + 45 70 15 40 15Mail: [email protected]

KILROY travels Denmark A/SFalkoner Allé 14DK-2000 FrederiksbergDenmark

KILROY travels Denmark A/SVestergade 100DK-5000 Odense CDenmark

KILROY travels Denmark A/SFredensgade 40DK-8100 Aarhus CDenmark

KILROY travels Denmark A/SØsteraagade 23DK-9000 AalborgDenmark

OY KILROY travels Finland ABKaivokatu 10 DFIN-00100 HelsinkiFinlandTelephone:+ 358 203 545769Mail: [email protected]

OY KILROY travels Finland ABForum KauppakeskusVapaudenkatu 49-51FIN-40100 JyväskyläFinland

OY KILROY travels Finland ABTuomiokirkonkatu 34FIN-33100 TampereFinland

OY KILROY travels Finland ABEerikinkatu 2FIN-20100 TurkuFinland

KILROY travels Netherlands B.V.Spuistraat 281NL 1012 VP AmsterdamNetherlandsTelephone:+ 31 20 524 5100Mail: [email protected]

KILROY travels Netherlands B.V.Singel 413-415NL 1012 WP AmsterdamNetherlands

KILROY travels Netherlands B.V.Vinkenburgstraat 15NL - 3512 AA UtrechtNetherlands

KILROY travels Netherlands B.V.Korte Hoogstraat 11NL-3011 GJ RotterdamNetherlands

KILROY travels Netherlands B.V.Oude kijk in´t Jatstraat 21NL-9712 EA Groningen Netherlands

KILROY travels Netherlands B.V.Stille Rijn 8-9NL 2312 DE LeidenNetherlands

KILROY travels Norway A/SNedre Slottsgate 23N-0157 OsloNorwayTelephone: + 47 23 10 23 00Mail: [email protected]

KILROY travels Norway A/SUniversitetssentretBox 54, BlindernN-0313 OsloNorway

KILROY travels Norway A/SVaskerelven 16N-5014 BergenNorway

KILROY travels Norway A/SVestre Strandgate 13N- 4610 KristiansandNorway

KILROY travels Norway A/SBreigata 11N-4006 StavangerNorway

KILROY travels Norway A/SStrandgata 36N-9008 TromsøNorway

KILROY travels Norway A/SJomfrugata 3N-7011 TrondheimNorway

KILROY travels Norway A/SNTNU Gløshaugen 1Kolbjørn Heies vei 4N-7491 TrondheimNorway

KILROY travels Sweden ABKungsgatan 4Box 7144S-103 87 StockholmSwedenTelephone:+ 46 771 545 769E-mail: [email protected]

KILROY travels Sweden ABUniversitetsvägen 9(Allhuset Frescati)Box 50004S-104 05 StockholmSweden

KILROY travels Sweden ABVasagatan 7S-411 24 GothenburgSweden

KILROY travels Sweden ABKlostergatan 31S-582 23 LinköpingSweden

KILROY travels Sweden ABKungsgatan 2cS-223 50 LundSweden

KILROY travels Sweden ABEngelbrektsgatan 18S-211 33 MalmöSweden


28 The KILROY Group

As of 3 May 2005

KILROY travels Sweden ABKungsgatan 71S-901 07 UmeåSweden

KILROY travels Sweden ABBredgränd 3S-753 20 UppsalaSweden

KILROY travels Sweden ABRudbecksgatan 16S-702 23 ÖrebroSweden

KILROY EducationKungsgatan 6Box 7144S-103 87 StockholmSweden

KILROY group travel A/SNygade 3DK-1164 Copenhagen KDenmarkTelephone: + 45 70 22 05 35Mail: [email protected]: www.kilroygroups.com

KILROY group travel A/SNørregade 50DK-7500 HolstebroDenmark

TEAM BENNSNørregade 51DK-7500 HolstebroDenmarkTelephone: +45 97 42 50 00Internet: www.team-benns.com

KILROY group travel Kaivokatu 10 DFIN-00100 HelsinkiFinland

KILROY group travel Nedre Slottsgade 23N-0157 OsloNorway

KILROY group travel Box 7144Kungsgatan 4S-103 87 StockholmSweden

KILROY Invest A/SKnabrostræde 8DK-1210 Copenhagen KDenmarkTelephone: + 45 33 48 07 00Telefax: + 45 33 48 07 77

MyPlanet Holding A/SKnabrostræde 8DK-1210 Copenhagen KDenmarkTelephone: + 45 33 48 07 00Telefax: + 45 33 48 07 77

MyPlanet International A/SNørregade 51DK-7500 HolstebroDenmarkTelephone: + 45 70 12 50 11Telefax: + 45 36 98 91 20Mail: [email protected]: www.myplanet.com

MyPlanet Denmark A/SNørregade 51DK-7500 HolstebroDenmark

MyPlanet Denmark A/SFalkonér Alle 1DK-2000 Frederiksberg CDenmark

MyPlanet Sweden ABKastellgatan 17Box 7124S-402 33 GothenburgSweden

MyPlanet Sweden ABNorrbackagatan 47 BS-104 35 StockholmSweden

MyPlanet Norway A/SWergelandsveien 7P.O. Box 7144, MajorstuaN-0307 OsloNorway

MyPlanet Australia Pty. Ltd.(Bentours Int. Pty. Ltd.)Suite 2, Level 7189 Kent StreetSydneyNSW 2000Australia


I have mmade tthe hhappy ddiscovery tthat aas llife aand aart hhave bbecomeclearer ffor mme, mmore aand mmore ssunshine hhas sstreamed iinto mmy

breast ffrom ooutside; wwhat bblessings ccame mmy wway aafter tthe ffirst,sombre ddays. PPeace aand ccertainty hhave ffound aa pplace iin mmy ssoul;yet ssuch ppeace ccan wwell bbe ccombined wwith aa vvarying llife oof ttravel;there wwas oone ttime II ffelt sso ooppressed aand ttormented bby eeventsat hhome tthat tto bbe aabroad ddid aat lleast mmean aa rrespite ffrom mmysuffering - aand tthus fforeign ccountries sseemed tto ooffer mme ppeace.I ccame tto bbe ffond oof bbeing aabroad, aand ssince iit iis mmy nnature ttobecome aattached tto ppeople qquite eeasily, pprovided tthey sshowconfidence aand ffriendliness iin rreturn, II ttook aa lliking tto ttravellingabroad, aand ddid sso ooften.

"To travel is to live!"A tribute to a great adventerous Dane, Hans Christian Andersen, in the year of his 200th anniversary


KILROY travels International A/SKnabrostræde 81210 Copenhagen VDenmarkCVR-nr. 10 91 52 95

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