KILROY Annual Report 2011
-
Upload
claus-hincheli-hejlesen -
Category
Documents
-
view
443 -
download
2
Transcript of KILROY Annual Report 2011
Annual Report 2011
Casper
from
KIL
RO
Y in C
openhagen v
isitin
g a
school in
Kara
uli,
Raja
sth
an,
India
2
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 text shall be governing for all purposes and in case of any discrepancy the Danish wording shall be applicable. The Danish worded annual report is subject to approval at the ordinary general meeting on March 28, 2012, and will be filed with the Danish Commerce and Companies Agency.
Content
Key Figures 3
The KILROY Group 5
Report of the Board of Directors 7
Jysk Rejsebureau 14
KILROY travels 10
KILROY education 11
KILROY group travel 12
Team Benns 15
Financial Review 16
Management’s Statement 17
Accounting Policies 19
Profit & Loss Account 21
Balance Sheet 22
Cash Flow Statement 24
Notes to the Accounts 25
Board of Directors and Management 31
Addresses 32
The History and the Legend 33
Our customers dream of doing something different, studying in a foreign country, achieving self-realization, exploring the world and sharing their experiences with others.
We are continuously trying to fulfil these dreams in our very own dedicated way.
We make dreams happen!
Auditors’ Report 18
KILROY deals 13
3 Key Figures in DKK
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
2011 2010 2009 2008 2007
Profit & Loss Account (DKK million)
Turnover 1,437 1,492 1,072 1,122 1,094
EBITDA 42 35 26 22 12
EBIT 36 27 17 11 -4
Net financials 4 4 5 7 6
EBT 40 30 22 18 2
Net profit for the year 29 22 16 13 2
Balance Sheet (DKK million)
Cash and bonds 198 184 193 158 162
Current assets 265 255 251 222 227
Total assets 291 282 262 238 253
Capital expenditure 4 23 2 4 8
Equity 56 49 40 27 30
Current liabilities 220 218 219 204 217
Cash flow from operating activities 35 -1 48 11 39
Key Figures
EBITDA - Margin (%) EBITDA / turnover (excl. other operat ing income) 2.9 2.3 2.4 2.0 1.1
EBIT - Margin (%) EBIT / turnover 2.5 1.8 1.6 0.9 -0.3
Return on assets (%) EBIT / total assets 12.3 9.5 6.7 4.4 -1.5
Return on equity (%) Net prof it (excl. extraordinary income/expenses) / average equity 54.6 48.8 48.5 46.4 4.6
Liquidity ratio (%) Current assets / current liabilit ies 120.4 117.1 114.6 108.6 104.9
Equity ratio (%) Equity (excl. minority interests) / total assets 19.2 17.5 15.3 11.2 11.8
Earnings per share (DKK) Net prof it (excl. extraordinary income/expenses) / number of shares 161.2 122.3 90.6 73.3 8.8
Cash flow per share (DKK) Cash f low from operat ing act ivit ies / number of shares 196.3 -4.7 267.9 62.0 219.5
Proposed dividend (DKK million) 20.0 19.0 14.0 17.0 1.5
311 324 280 304 318
Note. Due to the merger of KILROY Denmark and Jysk Rejsebureau per 1 January 2010 the key f igures for the years 2010-2011 are not fully comparable to the years 2007-2009
Average number of full-time employees
(FTE)
4 Key Figures in EUR
2011 2010 2009 2008 2007
Profit & Loss Account (EUR million)
Turnover 192.9 200.3 144.0 150.4 146.8
EBITDA 5.6 4.7 3.5 3.0 1.7
EBIT 4.8 3.6 2.3 1.4 -0.5
Net financials 0.6 0.5 0.6 1.0 0.8
EBT 5.4 4.1 3.0 2.4 0.3
Net profit for the year 3.9 2.9 2.2 1.8 0.2
Balance Sheet (EUR million)
Cash and bonds 26.6 24.7 25.9 21.3 21.7
Current assets 35.7 34.2 33.8 29.7 30.5
Total assets 39.1 37.9 35.3 32.0 33.9
Capital expenditure 0.5 3.1 0.3 0.5 1.1
Equity 7.5 6.6 5.4 3.6 4.0
Current liabilities 29.6 29.2 29.5 27.4 29.0
Cash flow from operating activities 4.7 -0.1 6.4 1.5 5.3
Key Figures
EBITDA - Margin (%) EBITDA / turnover (excl. other operat ing income) 2.9 2.3 2.4 2.0 1.1
EBIT - Margin (%) EBIT / turnover 2.5 1.8 1.6 0.9 -0.3
Return on assets (%) EBIT / total assets 12.3 9.5 6.7 4.4 -1.5
Return on equity (%) Net prof it (excl. extraordinary income/expenses) / average equity 54.6 48.8 48.5 46.4 4.6
Liquidity ratio (%) Current assets / current liabilit ies 120.4 117.1 114.6 108.6 104.9
Equity ratio (%) Equity (excl. minority interests) / total assets 19.2 17.5 15.3 11.2 11.8
Earnings per share (EUR) Net prof it (excl. extraordinary income/expenses) / number of shares 21.6 16.4 12.2 9.8 1.2
Cash flow per share (EUR) Cash f low from operat ing act ivit ies / number of shares 26.4 -0.6 36.0 8.3 18.9
Proposed dividend (EUR million) 2.7 2.6 1.9 2.3 0.2
311 324 280 304 318
Note. Due to the merger of KILROY Denmark and Jysk Rejsebureau per 1 January 2010 the key f igures for the years 2010-2011 are not fully comparable to the years 2007-2009
Average number of full-time employees
(FTE)
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
DK
FI
NL
NO
SE
IS
Own Operations
5 The KILROY Group
KILROY International A/S heads a European-based group of companies that are leading in the segments in which they operate.
The Group operates several brands in six markets, and employs nearly 400 people.
Brands and Competence
The KILROY Group believes in the importance of strong brands to create long-term benefits for our customers and for our company. We constantly allocate resources to expand our knowledge of customer needs and preferences. This knowledge is integrated into our branding process to create a clear and unique position in the minds of our customers.
This brand value is further supported by the high competence of our staff who, together, comprise a platform of specialists that is regarded as an authority by our customers.
Operation
The KILROY Group‘s activities are separated into a number of business areas which have full profit & loss responsibility.
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
Operations through Cooperation
DK
SE
SkiTravelGroup
Horizons A/S (Denmark)
KILROY International A/S (Denmark)
OY KILROY Finland AB (Finland)
KILROY Netherlands B.V. (Netherlands)
KILROY Norway AS (Norway)
KILROY Sweden AB (Sweden)
KILROY group travel A/S (Denmark)
100%
100%
57%
100%
100%
100%
OurWorld A/S (Denmark)
SkiTravelGroup (Denmark)
40%
27.6%
Amsterdam Bergen Copenhagen Gothenburg Groningen Helsinki Holstebro Lund Odense Oslo Reykjavik Stockholm Trondheim Turku Utrecht Uppsala Aalborg Aarhus
Locations
KILROY Iceland ehf. (Iceland)
100%
6 The KILROY Group
Legal Structure as per March 28, 2012
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
7
The KILROY Group delivered a robust result for the year 2011.
Turnover reached DKK 1,437 million compared to DKK 1,492 million in 2010.
Operating profit (EBITDA) was DKK 42 million, up from DKK 35 million in 2010.
The KILROY Group closed 2011 with a profit before tax (EBT) of DKK 40 million, which equals a return on equity of 55% compared to 49% in 2010.
The financial result of the KILROY Group has met the targets for both sales and profitability, and the Board of Directors considers this development satisfactory.
The improved 2011 profitability stems from several areas of the KILROY Group. However, the Team Benns activities in Denmark and KILROY in Norway have shown particularly strong development.
The Danish company Horizons, which holds the merged operations of KILROY Denmark and Jysk Rejsebureau, has also developed considerably and is now contributing to the Group’s result in accordance with expectations.
The increase in EBITDA must be seen in the context that 2010 included a one-off income of DKK 6.8 million due to reclassification of certain business segments. Adjusted for this one-off
Income, the improvement of EBITDA is 45%.
The above-mentioned reclassification also affected the turnover with DKK 51 million, which balances the turnover in 2011 with 2010.
The EBITDA development for the KILROY Group is shown in the chart below.
Market environment
2011 offered its usual share of external events that impacted the industry. That aside, the market environment was generally positive.
Distribution
The self-service sales channel continues to grow, and this channel is often the first step in a chain of sales transactions.
Sales channels offering personal counselling are important to travellers planning long and complicated journeys, and to very young travellers preparing their first trip. These channels must develop constantly in order to ensure significant and relevant value propositions.
In regard to physical sales locations, the number remained unchanged during 2011. The Utrecht sales location has been relocated and plans have been made to relocate the Lund location. In general, larger units have proven essential in developing valued competences.
The unique youth and student ticket
For several decades, the KILROY Group has been active in SATA (Student Air Travel Association), which has facilitated travel opportunities for students and young people. Originally, this type of travel was conducted on the SATA member’s own flight ticket stock, and settlement was made after the ticket was flown. This is also known as the flown revenue concept. The SATA ticket met the demands of a special segment of students and other young people who often travel for longer periods. Those
Report of the Board of Directors
12
2226
35
42
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
0
5
10
15
20
25
30
35
40
45
2007 2008 2009 2010 2011
EBITDA
EBITDA mDKK
EBITDA %
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
8
demands are affordable prices and a high degree of flexibility.
The KILROY Group is unyielding in keeping these demands in focus. However, the Group is also moving to streamline the business to meet the suppliers’ demand for seamless integration. This is pursued via industry standard settlement procedures ensuring cost-efficiency both for KILROY and the airlines.
The unique youth and student ticket has been the instrument for serving more than 10,000 young people while en route in 2011. This service is primarily provided online from a central service team in Copenhagen.
Mergers & acquisitions
As of January 1, 2011, KILROY group travel A/S (Team Benns) acquired 40% of OurWorld A/S – a Danish-based travel company specialised in guided group tours.
Also from January 1, 2011, KILROY Invest A/S was merged into KILROY International A/S in order to simplify and optimise the business operation. Changes in Danish legislation made this merger relevant.
As of May 1, 2011, all skiing activities in the brand Team Benns Ski were merged with Højmark Rejser. In return, KILROY group travel A/S now owns 27.6% of the
merged company, which has been named SkiTravelGroup. In addition to Højmark Rejser and Team Benns Ski, SkiTravelGroup also operates the ski brands ClickSki.com and Lion Alpin. See page 6.
In August 2011, KILROY group travel A/S divested its 15% stake in the Danish charter company Primo Tours A/S.
At the end of 2011, KILROY Iceland ehf. was established as a fully-owned subsidiary of KILROY International A/S.
Brands & business areas
During 2011, Team Benns further expanded its activities in Norway. Safaritur.no and USAtur.no have been added to the sub-brand “tur.no.”
KILROY also expanded during 2011 by adding KILROY deals to its business. See more about “deals” on page 14.
IT & other investments
The KILROY Group will continue to make investments in businesses and assets that facilitate long-term growth and development.
Investments in IT remain a focus area. Thus an internal project was launched in 2011 with the purpose of developing a new, enhanced selling point. A beta-version was released in the beginning of 2012 and initial test results are positive.
KILROY uses mainstream technology in all parts of the IT infrastructure.
The majority of operational IT costs are based on long-term maintenance agreements ensuring ongoing updates, and adoption of the newest market trends and developments.
Organisation
The average number of employees (fulltime equivalent) in 2011 was 311 compared to 324 in 2010. The main driver for the reduction has been the transfer of staff to SkiTravelGroup in connection with the merger between Team Benns Ski and Højmark Rejser.
Once again, there are many reasons to thank our employees for their effort in 2011. The continuous improvement of profitability has many sources - first and foremost a vigorous and determined organisation!
The KILROY Group sees the competences of the sales organisation as imperative for our future success. Consequently, resources are sharply focused on training and upgrading the organisation. Investments in IT technology and the optimisation of work processes are seen as an integral part of this development in order to reduce average transaction costs, and to save employees’ time and focus for creating customer value.
Report of the Board of Directors
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
9
The chart below illustrates the development in the number of employees and sales per employee.
Corporate Social Responsibility
It is a goal of the KILROY Group that employees, suppliers and customers all pursue their best endeavours in a manner that supports the neighbouring community and, to the extent possible, limits any negative impact on the environment.
The KILROY Group business by its very nature facilitates and builds
understanding and respect among cultures. However, the nature of the business also involves a significant amount of air transportation, which carries a certain environmental impact.
The KILROY Group does not have an official written policy for social responsibility, consequently concrete results regarding the work with social responsibility cannot be presented at this stage. However, the KILROY organisation has developed a Code of Conduct that was implemented in 2011 in all companies of the KILROY Group. The purpose of the code is to clarify how all individuals in the KILROY Group should conduct business matters. Initially, the main focus has been on local issues, e.g., general legislation, gender justice, working environment and environmental consciousness.
This work will proceed, and issues such as illness, supplier evaluation and corruption are expected to be included in the code.
KILROY Foundation
Some of the companies that form the KILROY Group were founded after World War II in an atmosphere of quest for broader understanding between cultures. This was pursued through the exchange of students. It may be argued that the globalisation of the world today offers intercultural interaction far beyond what the students in the forties dreamed of.
However, KILROY believes that education in a broad context is as important today as it was then.
To support this vision, it was decided in December 2011 to establish the KILROY Foundation.
The purpose of the foundation is to contribute to the development of international
understanding through supporting educational activities throughout the world.
Initially, the KILROY Foundation received a gift from KILROY International of DKK 1,000,000 (EUR 130,000).
Shareholder information
The ownership structures remained unchanged during 2011. The Danish company, SSTS A/S, holds 100% of the shares in KILROY International A/S.
SSTS A/S currently has no other activities than the ownership of the KILROY Group. SSTS A/S is owned by a group of Nordic investors who have, or have had, management positions within the Group.
Expectations for 2012
The expectation for 2012 is that the KILROY Group will deliver a result close to the result of 2011, save for external events beyond the control of the Group.
Report of the Board of Directors
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
0
50
100
150
200
250
300
350
2007 2008 2009 2010 2011
Employees
Number of FTE Turnover per FTE
mDKK
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
10
KILROY travels has built a solid reputation as the leading specialist in youth and student travel.
We specialise in tailor-made packages. Our sales consultants are experts at putting together complex flight itineraries and round-the-world trips. And just as importantly, they are passionate about travelling.
With KILROY, customers get the best of both worlds: expert personal service from our sales consultants, and self-service through the KILROY website.
Read more at www.kilroy.eu
KILROY travels
Denmark
23%
Finland
14%
Netherlands
13%
Norway
31%
Sweden
19%
2011 Turnover per
market
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
11
KILROY education is a strong brand in the student market, offering counselling to students who wish to study abroad.
KILROY education works closely with recognised universities throughout the world, offering primarily fulltime degree programmes.
Based on 15 years of experience, KILROY education is constantly expanding. We now offer our services in all five Nordic markets, as well as in the Netherlands. KILROY education is also launched in the Icelandic market in 2011 providing online services with local support during the ongoing startup phase.
Read more at www.kilroy.eu
KILROY education
Denmark
12%
Finland
10%
Netherlands
9%
Norway
34%
Sweden
35%
2011 Turnover per
market
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
12
KILROY group travel maintains a dominant position in the Nordic market, specialising in youth and student educational travel.
Our market share has grown steadily, and we are both ensuring and building upon our strong position by focusing on concept development and staff competence. The concept, “Go beyond sightseeing,” has been developed in collaboration with our target group, the teachers. The concept is to provide them with educational material to be used both before and during their study trip, enabling them to save time on preparation and strengthen the educational content in the order to justify the costs.
Read more at www.kilroygroups.com
KILROY group travel
Denmark
38%
Finland
22%
Norway
32%
Sweden
8%
2011 Turnover per
market
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
13
KILROY deals is a new brand being launched across the KILROY markets offering discounts relevant for students and youth in their daily life.
KILROY deals is a development of the ISIC card (International Student Identity Card), which KILROY has represented across the Nordic countries for more than 40 years. ISIC is supported by UNESCO, has over 4 million card holders and gives access to over 40,000 benefits worldwide.
Read more soon at kilroy.eu
13 KILROY deals
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
14
Jysk Rejsebureau has been tailoring tours for the adventurous traveller for more than 25 years.
Our sales consultants are experienced travellers themselves, and they focus on giving customers the opportunity to experience areas that are often found only where the asphalt ends and the roads turn into trails. We love to compose trips with a high content of “feeling the world” – trips that are unique in experience yet affordable.
Read more at www.jr.dk
Jysk Rejsebureau
Denmark
100%
2011 Turnover per
market
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
15
Team Benns is a Danish travel agency specializing in a number of unique concepts which all have a solid and profitable market position.
With a starting point in group travel, TEAM BENNS has expanded its product portfolio to include skiing, safaris, cruises, escorted tours and comprehensive destination programs in USA/Canada and Australia/New Zealand, aimed at the +50 segments. A number of these product lines have also been launched in Norway under the umbrella brand, “tur.no.”
Read more at www.team-benns.com and www.australiatur.no / usatur.no / safaritur.no / gruppetur.no
Team Benns
Denmark
95%
Norway
5%
2011 Turnover per
market
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
16
KILROY International A/S’ net result in 2011 is DKK 25.4 million, compared with DKK 21.6 million in 2010.
Shareholders’ equity
The share capital remains unchanged at DKK 17.8 million. Free reserves including proposed dividend total DKK 38.1 million. Total Group shareholders’ equity is DKK 55.9 million at the end of the year.
Dividends and dividend policy
As ordinary dividend to be decided at the Annual General Meeting, the Board recommends a payment of DKK 20.0 million.
Future dividends will also be proposed with consideration to the KILROY Group’s expansion plans, continued consolidation and liquidity.
Financial management
The KILROY Group placement policy allows placement in portfolio agreements with weighted average duration of 1-3 years and liquid assets in the short-term money market and in publicly traded securities and mortgage backed bonds with a relatively short average maturity.
It is the policy of the KILROY Group that the liquidity ratio always exceeds 100 in order to ensure that all short-term liabilities can be paid immediately.
It is also a policy that subsidiaries do not hold
liquid assets in excess of those required for normal operations, and they shall not accrue debt locally or make other financial arrangements/-agreements.
The financial risk of doing business in multiple countries and currencies is managed according to established policies to ensure that currency exposure is minimized to the extent possible.
KILROY 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 are used to limit risks. Subsidiaries operate mainly in their own local currencies.
In cases where the subsidiaries have foreign exchange exposure, they hedge their exposure via the KILROY Group’s corporate treasury function.
Investments
Investments in technology are a high priority and is considered as one of the key elements for long term sustainability.
In the last decade KILROY has invested substantial amounts in software and hardware. Consequently, our IT platform and supporting systems are up to date, flexible and scalable.
Events in 2012
No material events have occurred after the balance sheet date, which affect the assessment of the Annual Report 2011.
Auditing
KPMG is sole auditor.
SSTS A/S Annual Report
The Annual Report of KILROY International A/S is included in the Annual Report of SSTS A/S.
The Annual Report of SSTS A/S can be obtained from
SSTS A/S Knabrostræde 8 DK-1210 Copenhagen K
Financial Review
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
17 Management’s Statement
Statement by the Board of Directors and Management
Today, the Board of Directors have discussed and approved the annual report of KILROY International A/S for the financial year January 1 – December 31, 2011.
The annual report has been prepared in accordance with the Danish Financial Statements Act.
It is our opinion that the consolidated financial statements and the parent company financial statements give a true and fair view of the Group's and the Company's financial position at December 31, 2011 and of the results of the Group's and the Company's operations and cash flows for the financial year January 1 – December 31, 2011.
Further, in our opinion, the report of the Board of Directors gives a fair assessment of
the development in the Group's and the Company's operations and financial matters and the results of the Group's and the Company's operations and financial position.
We recommend that the annual report be approved at the annual general meeting.
Copenhagen, March 28, 2012
Board of Management
Claus H. Hejlesen
Managing Director
Board of Directors
Arnar Thorisson
Chairman
Tapio Kiiskinen
Vice Chairman
Sigurdur Kiernan Claus H. Hejlesen Robert Doeleman
(elected by staff)
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
18
To the shareholders of KILROY International A/S
Independent auditors' report on the consolidated financial statements and the parent company financial statements
We have audited the consolidated financial statements and the parent company financial statements of KILROY International A/S for the financial year 1 January – 31 December 2011. The consolidated financial statements and the parent company financial statements comprise accounting policies, income statement, balance sheet, cash flow statement and notes for the Group as well as for the parent company. The consolidated financial statements and the parent company financial statements are prepared in accordance with the Danish Financial Statements Act.
Management's responsibility for the consolidated financial statements and the parent company financial statements
Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of consolidated financial statements and parent company financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' responsibility
Our responsibility is to express an opinion on the consolidated financial statements and the parent company financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulation. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the consolidated financial statements and the parent company financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements and the parent company financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the consolidated financial statements and the parent company financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Company's preparation of consolidated financial statements and parent company financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the consolidated financial statements and the parent company financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our audit has not resulted in any qualification.
Opinion
In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the Group's and the parent company's financial position at 31 December 2011 and of the results of the Group's and the parent company's operations and consolidated cash flows for the financial year 1 January – 31 December 2011 in accordance with the Danish Financial Statements Act.
Statement on the Management's review
Pursuant to the Danish Financial Statements Act, we have read the Management's review. We have not performed any further procedures in addition to the audit of the consolidated financial statements and the parent company financial statements. On this basis, it is our opinion that the information provided in the Management's review is consistent with the consolidated financial statements and the parent company financial statements.
Copenhagen, March 28, 2012
KPMG
Statsautoriseret Revisionspartnerselskab
Sven Carlsen
State Authorised Public Accountant
Per Lund
State Authorised Public Accountant
Independent Auditor’s Report
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
19 Accounting Policies
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
General
The Annual Report for 2011 for KILROY International A/S is presented in accordance with the provisions of the Danish Financial Statements Act for accounting class large-C companies.
The Annual Report has been prepared using the same accounting policies as last year.
Consolidated Accounts
The consolidated accounts include the annual accounts of the parent company; KILROY International A/S, and all subsidiaries that the parent company controls directly or indirectly.
The consolidated accounts are prepared by adding items of a similar nature in the accounts of KILROY International 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 are converted into Danish kroner (DKK) using the average exchange rates for the year. Balance sheet items are converted 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 exchange rate adjustments of the profit and loss accounts from average rates to year-end rates, are posted against the Group 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.
Upon acquisition of a subsidiary, the share of the net assets is calculated according to the Group’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 connection to acquisitions is capitalised and amortised over a maximum 20-year period.
Newly acquired or established companies are included in the consolidated accounts from the date when control was gained.
Divested companies are included up to the date of disposal.
Other financial assets includes investments in non-controlled companies.
Profit and Loss Account
Turnover
Turnover includes the year’s sales of travel products and services.
Revenues from individual oriented products are booked at the time of invoicing, regardless of departure date.
Revenues from group travel products are booked in the accounting period that coincides with the departure date of the trip.
Cost of products sold
Cost of products contains invoiced and accrued cost of travel related products, services and financial arrangements.
Result from shares in subsidiaries
Net profits or losses in subsidiaries contain the proportionate share of net profits or losses in the subsidiaries.
Tax
KILROY International A/S is jointly taxed with Danish subsidiaries and the parent company SSTS A/S. Subsidiaries are included/excluded in the joint taxation at the same time, as they are included/excluded in the consolidation.
The current Danish corporation tax is allocated among the jointly taxed Danish companies in proportion to their taxable income (full absorption with refunds for tax losses).
Tax for the year comprises current tax, joint taxation and changes in deferred tax for the year including adjustments to tax rates. The tax expense relating to the profit/loss for the year is recognised in the income statement, and the tax expense relating to changes directly recognised in equity is recognised directly in equity.
Deferred tax is provided under the liability method and covers all temporary differences between accounting and tax values of the assets and liabilities.
Deferred tax is furthermore provided for re-taxation of tax deductible losses realised in non-Danish associated companies, if the re-taxation is expected to be realised by the associated companies’ departure from the Danish joint taxation scheme.
The tax value of tax loss carry-forwards will be set off against deferred tax liabilities to the extent that the tax losses and other tax assets are expected to be utilised in the future taxable income. Deferred tax is calculated according to applicable tax laws and according to the expected tax rate.
20 Accounting Policies
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
Balance Sheet
Fixed assets
Fixed assets are carried at cost less accumulated depreciation and impairment. Assets are written down if their value has depreciated and cannot be seen as appreciating in the near future.
Depreciation is calculated on a straight-line basis of the cost according to the following guidelines, based on the estimated economic life of the asset:
▪ Software 3-5 years
▪ Goodwill 3-20 years
▪ Land and buildings 33-50 years
▪ Leasehold improvements 5 years
▪ IT and other equipment 3-5 years
Participating interests in subsidiaries
Participating interests in subsidiaries are valued according to the equity method at the proportionate share of the net assets.
Financial assets
Are recognised at fair value, if available otherwise at cost.
Inventories
Goods for resale are measured at cost price.
Write-downs are made according to obsolescence and other forms of value depreciation.
Receivables
Receivables are stated at amortized cost net of provisions for possible losses.
Prepaid expenses
Prepaid expenses are measured at cost.
Bonds and securities
Publicly traded bonds are stated at the market value at year-end. Realised and unrealised gains and losses are included in the profit and loss account.
Dividend
Dividend is stated in the accounts at the time when the company at the Annual General Meeting, the company thereby having incurred a liability, decides it. The dividend that is proposed for distribution is included in the equity under the item “retained earnings”.
Other provisions
Other provisions include an estimated liability, which will presumably lead to an outflow of resources.
Financial liabilities
Are stated at amortised cost, if not stated otherwise.
Rent and leasing
The 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 profit and loss account for the applicable period.
The aggregate rental and leasing liability is stated under contingent liabilities.
Currency conversion
Accounts in foreign currency are stated at the exchange rate at year-end. Gains and losses are included in financial items. Currency contracts to hedge forward income and expenses are booked in the profit and loss account at market values.
Currency contracts to hedge incomes and expenses that are booked are included in the profit and loss at market value of the currency contract. Changes in the value of the hedging instrument after tax are stated directly in the equity until the hedged asset is realised.
Cash Flow Statement
The cash flow statement is presented according to the 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 flow from the year’s operations, adjusted for operating items of a non-cash nature and changes in working capital.
Working capital includes current assets less liquid assets and current, non-interest bearing liabilities and dividends.
Cash flow from investing activities covers cash flow in connection with the purchase and sale of fixed assets, including participating interests and other long-term securities.
Cash flow from financing activities covers payments to and from shareholders, together with the raising of and repayment of interest bearing liabilities.
Liquid assets are cash holdings, money market deposits in banks, and marketable securities stated under current assets.
21 Profit & Loss Account
January 1 - December 31
2011 2010 2011 2010
Note kDKK kDKK kDKK kDKK
Turnover 1,437,333 1,492,059 17,272 17,152
Cost of products sold -1,201,484 -1,267,397 1,094 2,670
Gross profit 235,849 224,662 18,366 19,822
1 Sales and administrative costs -62,712 -63,167 -1,381 -384
2 Personnel costs -131,500 -126,848 -23,641 -21,242
EBITDA 41,637 34,647 -6,656 -1,804
3 Depreciation -5,790 -7,951 -968 -1,099
EBIT 35,847 26,696 -7,624 -2,903
6 Result from shares in subsidiaries - - 30,079 22,569
4 Financial income, net 4,197 3,706 1,352 2,051
EBT 40,044 30,402 23,807 21,717
5 Tax -11,285 -8,581 1,628 -127
Net profit for the year 28,759 21,821 25,435 21,590
Gain/loss attributable to minority -3,324 -231
Result attributable to KILROY International A/S 25,435 21,590
Proposed appropriation of net result:
Retained earnings at the beginning of the year 31,581 22,209
Net profit for the year 25,435 21,590
Paid dividend -19,000 -14,000
Other free reserves 83 1,782
38,099 31,581
Proposed dividend -20,000 -19,000
Retained earnings at the end of the year 18,099 12,581
Group Parent
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
22 Balance Sheet
December 31
ASSETS 2011 2010 2011 2010
Note kDKK kDKK kDKK kDKK
FIXED ASSETS
Software 3,838 2,792 3,827 2,792
Goodwill 13,040 17,737 - -
3 Intangible fixed assets 16,878 20,529 3,827 2,792
Land and buildings 785 815 - -
Leasehold improvements 2,578 2,017 133 172
IT hardware and other equipment 1,613 2,155 731 644
3 Tangible fixed assets 4,976 4,987 864 816
6 Shares in subsidiaries - - 73,725 62,058
6 Other financial assets 3,933 1,686 - -
Financial fixed assets 3,933 1,686 73,725 62,058
TOTAL FIXED ASSETS 25,787 27,202 78,416 65,666
CURRENT ASSETS
Inventories 3,106 4,005 - -
Trade debtors 30,840 28,716 1,372 1,134
Amounts due from affiliated companies 19,552 22,652 19,752 30,160
Other receivables 3,538 3,272 959 960
Prepaid expenses and accrued income 10,538 11,932 511 1,082
Total receivables 64,468 66,572 22,594 33,336
Bonds and securities 451 660 281 355
Cash at bank and in hand 197,080 183,803 58,414 69,239
TOTAL CURRENT ASSETS 265,105 255,040 81,289 102,930
TOTAL ASSETS 290,892 282,242 159,705 168,596
ParentGroup
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
23 Balance Sheet
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
December 31
LIABILITIES 2011 2010 2011 2010
Note kDKK kDKK kDKK kDKK
EQUITY
Share capital 17,839 17,839 17,839 17,839
Proposed dividend 20,000 19,000 20,000 19,000Retained earnings 18,098 12,581 18,099 12,581
55,937 49,420 55,938 49,420
Minority interests 8,939 5,615 - -
7 TOTAL EQUITY 64,877 55,035 55,938 49,420
PROVISIONS
8 Other provisions 4,467 5,953 4,467 5,953
5 Deferred tax 921 2,679 829 2,332
TOTAL PROVISIONS 5,388 8,632 5,296 8,285
LONG-TERM LIABILITIES
9 Long-term debt 483 800 - -
TOTAL LONG-TERM LIABILITIES 483 800 0 0
CURRENT LIABILITIES
Trade creditors 127,438 153,730 2,457 2,551
Amounts owed to subsidiaries - - 90,724 100,653
Other liabilities 26,917 17,333 1,838 4,207
Accrued liabilities 13,394 29,023 3,452 3,480
10 Advance payments 52,395 17,689 - -
TOTAL CURRENT LIABILITIES *) 220,144 217,775 98,471 110,891
TOTAL LIABILITIES 290,892 282,242 159,705 168,596
11 Contingent assets, liabilities and secured debt
12 Subsidiaries
13 Related parties
*) Due to reclassification of certain business segments in 2010, as mentioned in the Report o f the Board of Directors, the figures are not fully comparable.
Group Parent
24 Cash Flow Statement
January 1 - December 31
2011 2010 2011 2010kDKK kDKK kDKK kDKK
EBIT 35,847 26,696 -7,624 -7,013
Adjustments for non-cash items
Depreciation 5,790 7,951 968 449
Exchange rate and other adjustments 862 2,815 198 413
Working capital
Change in inventories 900 -201 0 0
Change in receivables -2,215 -8,321 7,642 -2,802
Change in other provisions -1,487 5,953 -1,487 0
Change in trade creditors -26,292 21,105 -94 -2,383
Change in other liabilities 24,850 -53,153 -9,381 -26,940
Cash flow from operating activities before financial items 38,255 2,845 -9,777 -38,276
Net interest income, etc. 3,368 2,989 1,305 1,551
Paid taxes -6,610 -6,674 -2,809 1,828
Cash flow from operating activities 35,013 -840 -11,281 -34,897
Purchase/sale of shares -2,364 -789 0 -6,940
Net purchase of plant, operating equipment etc. -3,681 -19,133 -2,051 -18
Cash flow from investment activities -6,045 -19,922 -2,051 -6,958
Capital contributions in subsidiaries 0 0 0 0
Loan to affiliated companies 3,100 3,303 3,100 3,303
Bankdebt 0 317 0 0
Dividends paid/received -19,000 -14,000 -668 15,141
Cash flow from financial activities -15,900 -10,380 2,432 18,444
Net cash flow from operating, investing and financing activities 13,068 -31,142 -10,900 -23,411
Liquid assets at the beginning of the year 184,463 192,789 69,595 68,108
Liquid assets from acquired companies 0 22,816 0 0
Liquid assets at the end of the year 197,531 184,463 58,695 44,697
Not all figures above can be found directly in the Annual Report, mainly due to the merger of KILROY Denmark and Jysk Rejsebureau.
ParentGroup
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
1. FEES TO AUDITORS APPOINTED AT THE GENERAL MEETING 2011 2010 2011 2010
kDKK kDKK kDKK kDKK
Audit services 899 848 297 300
Tax assistance 74 122 54 75
Other assurance engagements 0 21 0 0
Other assistance 292 223 42 79
Total auditor fees 1,265 1,214 393 454
2. PERSONNEL COSTS 2011 2010 2011 2010
kDKK kDKK kDKK kDKK
Salaries and wages 110,377 107,020 21,544 19,645
Social security contributions 7,438 7,172 270 235
Pensions 6,088 5,220 924 838
Other personnel costs 7,597 7,436 903 524
Total personnel costs 131,500 126,848 23,641 21,242
In 2011 the Group employed an average of 311 persons, full time equivalent (2010: 324). In 2011 the parent company employed an
average of 48 persons, full time equivalent (2010: 43).
Group Parent
Group Parent
25 Notes to the Accounts
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
26 Notes to the Accounts
3. FIXED ASSETSSoftware Goodwill
Land &
buildings
Leasehold
improvements
IT and other
equipment Total
kDKK kDKK kDKK kDKK kDKK kDKK
GROUP
Cost at the beginning of 2011 48,276 39,595 1,668 9,880 34,950 134,369
Exchange rate adjustments 0 33 0 -1 13 45
Additions in year 1,485 43 0 1,209 944 3,681
Disposals in year -43,886 -17,731 0 -605 -7,240 -69,462
Cost at the end of 2011 5,875 21,940 1,668 10,483 28,667 68,633
Depreciation at the beginning of 2011 -45,484 -21,858 -853 -7,863 -32,795 -108,853
Exchange rate adjustments 0 -16 0 2 -12 -26
Disposals in year 43,886 16,566 0 605 6,833 67,890
Depreciation in year -439 -3,592 -30 -649 -1,080 -5,790
Depreciation at the end of 2011 -2,037 -8,900 -883 -7,905 -27,054 -46,779
Carrying amount at the end of 2011 3,838 13,040 785 2,578 1,613 21,854
Carrying amount at the end of 2010 2,792 17,737 815 2,017 2,155 25,516
PARENT
Cost at the beginning of 2011 46,143 4,046 0 876 7,999 59,064
Additions in year 1,468 0 0 19 564 2,051
Disposals in year -43,086 -4,046 0 -605 -6,452 -54,189
Cost at the end of 2011 4,525 0 0 290 2,111 6,926
Depreciation at the beginning of 2011 -43,351 -4,046 0 -704 -7,355 -55,456
Depreciation in year -433 0 0 -58 -477 -968
Disposals in year 43,086 4,046 0 605 6,452 54,189
Depreciation at the end of 2011 -698 0 0 -157 -1,380 -2,235
Carrying amount at the end of 2011 3,827 0 0 133 731 4,691
Carrying amount at the end of 2010 2,792 0 0 172 644 3,608
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
27 Notes to the Accounts
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
4. FINANCIAL INCOME, NET 2011 2010 2011 2010
kDKK kDKK kDKK kDKK
Financial income 5,964 4,233 1,964 2,652
Financial expenses -1,767 -527 -612 -601
Financial income, net 4,197 3,706 1,352 2,051
Of the parent company´s financial expenses, kDKK 564 is interest to subsidiaries (2010: kDKK 332).
5. TAX 2011 2010 2011 2010
kDKK kDKK kDKK kDKK
Current tax charge 12,560 8,395 0 0
Joint taxation contributions 0 0 -567 1,517
Adjustments to previous year´s tax charge 442 0 442 0
Change in deferred tax and other changes -1,717 186 -1,503 -1,390
Total tax 11,285 8,581 -1,628 127
Deferred tax primo 2,679 2,916 2,332 3,723
Addition due to merger and sold activities -171 279 0 0
Exchange rate and other adjustments 130 -423 0 0
Change in deferred tax, net -1,717 -93 -1,503 -1,391
Deferred tax ultimo 921 2,679 829 2,332
In 2011, kDKK 6,610 (2010: kDKK 6,674) was paid as corporate tax in the Group.
In 2011, kDKK 3,040 (2010: kDKK 3,422) was paid as corporate tax in the parent company and jointly taxed consolidated Danish subsidiaries.
Of the parent company´s financial income, kDKK 0 is interest from subsidiaries (2010: kDKK 30) and kDKK 1,085 from the parent company
(2010: kDKK 1,173).
Group Parent
Group Parent
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.
28 Notes to the Accounts
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
6. SHARES IN OTHER FINANCIAL ASSETS AND SUBSIDIARIES 2011 2010 2011 2010kDKK kDKK kDKK kDKK
Cost at the beginning of the year 1,686 186 62,655 55,715
Purchase of shares and capital contributions 3,912 1,500 23 6,940
Sale of shares and capital contributions -1,665 0 0 0
Cost at the end of the year 3,933 1,686 62,678 62,655
Adjustments at the beginning of the year -597 -2,349
Exchange rate adjustments -103 2,083
Profit after tax and minority 30,079 28,810
Dividends from subsidiaries -18,332 -29,141
Adjustments at the end of the year 11,047 -597
Book value at the end of the year 73,725 62,058
Profit after tax in subsidiaries 30,505 28,810
Amortization of goodwill -426 0
Write off of receivables in subsidiaries 0 -7,750
Assignment of liabilities to parent company 0 1,509
Result from shares in subsidiaries 30,079 22,569
A list of subsidiaries is shown on page 30
Other financial
assetsSubsidiaries
29 Notes to the Accounts
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
7. EQUITY 2011 2010 2011 2010
kDKK kDKK kDKK kDKK
Share capital at the beginning of the year 17,839 17,839 17,839 17,839
Capital adjustments 0 0 0 0
Share capital at the end of the year 17,839 17,839 17,839 17,839
Retained earnings at the beginning of the year 31,581 22,209 31,581 22,209
Exchange rate and other adjustments 83 1,782 83 1,782
Dividend paid during the year -19,000 -14,000 -19,000 -14,000
Proposed dividend 20,000 19,000 20,000 19,000
Net result of the year 5,435 2,590 5,435 2,590
Retained earnings at the end of the year 38,098 31,581 38,099 31,581
Total equity 55,937 49,420 55,938 49,420
Minority shareholders' share of equity at the beginning of the year 5,615 0
Additions/Disposals 0 5,384
Share of net result 3,324 231
Minority shareholders' share of equity at the end of the year 8,939 5,6150 0
Total Group shareholders' equity 64,876 55,035
8. OTHER PROVISIONS
Deferred income that is expected to mature in future years. Uncertainty exists for both amount and maturity.
9. LONG-TERM DEBT 2011 2010 2011 2010
kDKK kDKK kDKK kDKK
Bankdebt 0 317 0 0
Employee bonds 483 483 0 0
Total Long-term debt 483 800 0 0
All debt is due between 1 to 5 years.
Bank guarantee of kDKK 483 is issued to secure the obligations towards the employee bonds.
Group Parent
Group Parent
30 Notes to the Accounts
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
10. ADVANCE PAYMENTS
Primarily prepayments from travel ordered for 2012.
11. CONTINGENT ASSETS, LIABILITIES AND SECURED DEBT
The parent company has entered into rent and lease obligations with remaining terms of 6 months. Rent and lease payments in the periods
of the agreements total kDKK 621.00 (2010: kDKK 626.00). In total kDKK 621.00 is due in 2012.
The KILROY Group has issued guarantees/letters of credit for an amount of mDKK 28.1 (2010: mDKK 25.6) that is secured by an equal cash
pledge of deposits.
The Group has entered into rent and lease obligations with remaining terms of up to 5 years. Rent and lease payments in the period of the
agreements total kDKK 25.937000 (2010: kDKK 29.278000). In total kDKK 10.60000 is due in 2012.
12. SPECIFICATION OF SUBSIDIARIES Country City CurrencyShare
Capital
Capital
Share
Dividend
2011
Horizons A/S Denmark Copenhagen DKK 5,177 57% 0
KILROY Norway AS Norway Oslo NOK 4,000 100% 6,950
KILROY Sweden AB Sweden Stockholm SEK 2,500 100% 2,000
OY KILROY Finland AB Finland Helsinki EUR 336 100% 0
KILROY Netherlands B.V. The Netherlands Amsterdam EUR 2,147 100% 0
KILROY Iceland ehf. Iceland Reykjavik ISK 500,000 100% 0
KILROY group travel A/S Denmark Copenhagen DKK 1,100 100% 10,000
- OurWorld A/S Denmark Holstebro DKK 500 40% 0
- Ski Travel Group A/S Denmark Ringkoping DKK 808 27.6% 0
13. RELATED PARTIES
Related parties are SSTS A/S, Knabrostraede 8, DK-1210 Copenhagen, which owns 100% of the shares in KILROY International A/S.
31
Board of Directors
Arnar Thorisson Chairman Chairman, Iceland Invest Ltd. Chairman, Iceland Properties Ltd. Board Member, Caoz Plc.
Tapio Kiiskinen Vice Chairman Chairman, Destination Lapland Ltd. Member of the Finnish Association of Professional Board Members
Sigurdur Kiernan CEO, Investum Holding Ltd. Chairman, Geogreenhouse Ltd.
Robert Doeleman (elected by staff)
Product Manager, KILROY International A/S
Claus H. Hejlesen Managing Director & CEO KILROY International A/S
Registered Management
Claus H. Hejlesen
Managing Director & CEO, KILROY International A/S
Henrik Kaltoft
CFO, KILROY International A/S
Managing Director, OY KILROY Finland AB
Managing Director, KILROY Iceland ehf.
Managing Director, KILROY Netherlands B.V.
Managing Director, KILROY Norway AS
Allan Qvist
Managing Director, KILROY group travel A/S
Monica Murphy
Managing Director, KILROY Sweden AB
Ole Ærthøj
Managing Director, Horizons A/S
Member of World Youth Student & Educational Travel Confederation
Board of Directors and Management as of March 28, 2012
The Board of Directors’ and Management’s executive positions outside KILROY International A/S as disclosed in accordance with the Danish Financial Statements Act.
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
32
KILROY International A/S Knabrostræde 8 DK-1210 Copenhagen K, Denmark kilroy.eu
Horizons A/S Skt. Olufs Gade 2-4 DK-8000 Aarhus, Denmark Jysk Rejsebureau Skt. Olufs Gade 2-4 DK-8000 Aarhus, Denmark
Vesteraa 7 DK-9000 Aalborg, Denmark
jr.dk KILROY Skindergade 28 DK-1159 Copenhagen K, Denmark
Vestergade 100 DK-5000 Odense C, Denmark kilroy.dk OY KILROY Finland AB Kaivokatu 10 A FIN-00100 Helsinki, Finland
Eerikinkatu 2 FIN-20100 Turku, Finland kilroy.fi KILROY Iceland ehf. kilroy.is
KILROY Netherlands B.V. Singel 413-415 NL -012 WP Amsterdam, Netherlands
Oude kijk in´t Jatstraat 21 NL-9712 EA Groningen, Netherlands
Nobelstraat 119
NL-3512 EM Utrecht, Netherlands kilroyworld.nl KILROY Norway A/S Kirkegata 32 N-0153 Oslo, Norway
Vaskerelven 32 N-5014 Bergen, Norway
Olav Trygvasonsgate 33 N-7011 Trondheim, Norway kilroy.no
KILROY Sweden AB Master Samuelsgatan 42 Box 7144 S-103 87 Stockholm, Sweden
Vasagatan 7 S-411 24 Gothenburg, Sweden
Kungsgatan 2c S-223 50 Lund, Sweden
Bredgränd 3 S-753 20 Uppsala, Sweden kilroy.se
KILROY group travel A/S Knabrostræde 8 DK-1210 Copenhagen K, Denmark kilroygroups.com Nørregade 50 DK-7500 Holstebro, Denmark kilroygroups.dk Kaivokatu 10 D FIN-00100 Helsinki, Finland kilroygroups.fi Kirkegata 32 N-0153 Oslo, Norway kilroygroups.no Master Samuelsgatan 42 Box 7144 S-103 87 Stockholm, Sweden kilroygroups.se
TEAM BENNS Nørregade 51 DK-7500 Holstebro, Denmark team-benns.com Kirkegata 32 N-0153 Oslo, Norway team-benns.no tur.no Kirkegata 32 N-0153 Oslo, Norway australiatur.no gruppetur.no safaritur.no usatur.no
Auditor KPMG Osvald Helmuths Vej 4 Postboks 250 DK-2000 Frederiksberg Denmark
Attorney Kromann Reumert Sundkrogsgade 5 DK-2100 Copenhagen Ø Denmark
Main Bank Danske Bank Holmens Kanal 2 DK-1090 Copenhagen K Denmark
Addresses as of March 28, 2012
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report
33 The History & the Legend
1946 Student organisations in all Nordic countries establish travel agencies.
1951 SSTS, Scandinavian Student Travel Service was established by the Scandinavian student travel agencies with the objective of purchasing flight seats jointly on behalf of all the agencies. The Nordic student travel organization were: DIS Rejser (Denmark), Travela (Finland), Univers Reiser (Norway) and SFS Resebyrå (Sweden).
Over the years, SSTS developed into a travel organization specialized in production and wholesale of student and youth tours. Besides its founders, SSTS serves other student and youth travel agencies in Europe and the US, and SSTS became a major travel operator, topping with 700,000 sold flight seats in 1973. However, the global oil crisis in 1973/74 changed the picture totally.
1987 SSTS is re-organised into a limited company. The majority shareowner is HYY Group, which is owned by The Student Union of Helsinki University.
1990 A wholesale company is established in Spain.
1991 SSTS and the Nordic travel agencies are merged into one group with SSTS as the parent company. The group’s name is changed to KILROY.
1994 The German youth travel agency ARTU is acquired.
1996 A sales company is established in the Netherlands.
1998 Axcel, Denmark takes over an equity stake in KILROY travels International A/S.
1999 Benns Rejser A/S, Denmark is acquired. The company name of Benns Rejser is later changed to MyPlanet.
2001 The Danish group travel company Team Travel is acquired and merged with group travel activities from Benns Rejser. The merged unit is branded Team Benns.
KILROY group travel A/S is established as a new parent company for group travel activities.
KILROY travels Germany - ARTU GmbH is sold.
2003 The Danish ski group travel operator “Peer Gynt” is acquired.
2004 Trading in the Spanish market is ceased.
2005 MyPlanet is divested.
The Danish ski operator Ski-experten is acquired.
2006 The Danish ski operator Qvistgaard Rejser is acquired.
HYY Group takes over Axcel’s equity stake in KILROY travels International A/S.
2007 All educational activities from International Education Centre (IEC), Norway are acquired.
The ownership structure is changed. A group of Nordic investors acquires 100% of the shares in KILROY travels International A/S. The majority shareholder is Iceland Invest Ltd
2008 All educational activities from IEC Online, Finland are acquired. Furthermore KILROY education is established in Denmark and the Netherlands.
2009 The name of the parent company of the Group is changed to KILROY International A/S.
All educational activities from StudyWorld, the Netherlands are acquired.
2010 Horizons A/S is established as a merger of KILROY Denmark and Jysk Rejsebureau.
All travel activities from Wasteels Rejser, Denmark is acquired.
An ownership stake is acquired in OurWorld A/S, Denmark.
2011
An ownership stake is obtained in the SkiTravelGroup which is established as a merger between the skiing activities from Team Benns and Højmark Rejser.
A sales company is established in Iceland
Young James Kilroy worked on the docks of
Boston back in the 1940s. His job was to load the
great steamships of that day with huge cases of
blue jeans bound for every corner of the world.
One early November morning the weather was
grey and gloomy, and James Kilroy felt more like
staying indoors, sheltered and under cover. “Hey
Kilroy, you're day dreaming again. Can't you ever
get anything done?”
Kilroy was used to the foreman and his insults.
And the cases full of 100 000 blue jeans were
waiting to be loaded. There was no way around it
- it had to be done, might as well get on with it.
But as Kilroy bent down to pick up one of the
heavy wooden boxes, he was struck by a great
idea - an idea so good, he just had to do it. With
a piece of chalk he wrote in big bold letters on
each and every box:
As these cases turned up in foreign ports all
around the world, Kilroy's spirit reached across
the world as well - a really effective way of
getting around! From that moment on, whenever
the foreman shouted at Kilroy that he wasn't
getting anything done, Kilroy just smiled. He
knew better. In ports all over the world there
were daily reminders that the foreman was all
wrong.
Kilroy knew that there's more than one way of
crossing borders, and breaking through all kinds
of barriers to be free and independent!
KILROY WAS HERE!
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY Team Benns Financial Review
Mgmt.'s Statement
Accounting Policies
Profit & Loss Statement
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Board and Management
Addresses The History
and the Legend
Auditors’ Report