A Revenue Year for Kuoni in 2005

The Kuoni Group achieved a 3 percent year-on-year turnover increase in 2005, posting total turnover of CHF 3,688 million for the year.

The result is attributable to Kuoni´s strong presence in growing markets such as India, China and Africa and to the broad geographical spread of the Group´s business activities, which enabled Kuoni to respond swiftly and flexibly to the more difficult market conditions in the regions affected by the Asian tsunami disaster of December 2004 and to reassign capacities to other vacation regions.

Of the Group´s total turnover, 82.3 percent was generated from its leisure travel and 17.7 percent from its destination management (formerly known as incoming) activities.

Gross profit rose 1.1 percent to CHF 828.0 million thanks to the positive effect of the higher turnover volume. Gross profit margin declined slightly from 22.9 percent to 22.5 percent, owing largely to the interim sale of the Group´s German retail business.

Earnings before interest, taxes and amortization of goodwill (EBITA) totaled CHF 120.4 million, a decline of 5.7 percent on the previous year. Excluding the negative effects of the Asian tsunami and its repercussions, which amounted to over CHF 20 million, Group EBITA for 2005 would have been an improvement of more than 10 percent on its prior-year equivalent.

Kuoni held cash and cash equivalents of CHF 620.8 million on December 31, 2005 (compared to CHF 756.0 million at the end of 2004). This amount included advance payments by customers totaling CHF 302.5 million.

The consolidated balance sheet showed equity of CHF 581.8 million and an equity ratio of 35.1 percent at the end of 2005 (equity and equity ratio at December 31, 2004: CHF 658.5 million and 36.2 percent respectively). The decline is due to the CHF 104.5 million capital repayment effected during 2005.