Strong Growth, Record Net Result at Kuoni

Kuoni posted further strong results for 2007, the first year of its second century. With turnover growth of 15.1 percent and a record net result of CHF 136.3 million, the Kuoni Group successfully maintained its favorable overall development.

Kuoni raised its turnover 15.1 percent from the CHF 4 082 million of 2006 to CHF 4 699 million, including year-on-year organic growth of 6.1 percent. Earnings before interest and taxes (EBIT) were increased 15.3 percent from CHF 121.7 million to CHF 140.2 million.

The EBIT result includes costs incurred by year-end in the current transformation process, investments in the internet project Shoestring, and a rise in the acquisition-related amortization of intangible assets.

The net result for the year of CHF 136.3 million was a 16.8 percent improvement on 2006 CHF 116.7 million and was the highest ever recorded by the Kuoni Group. Earnings per registered share B was increased by 19.3 percent from CHF 39.02 to CHF 46.54.

Cash flow from operating activities amounted to a record high CHF 256.9 million (compared to CHF 190.3 million for 2006). Free cash flow was increased from the CHF 152.6 million of the prior year to CHF 208.4 million.

Kuoni Economic Profit (KEP) totaled CHF 58.5 million, a 21.6 percent improvement on 2006. Return on invested capital (ROIC) was raised from the 16.1 percent of the prior year to 16.4 percent.

The Board of Directors will propose to the Annual General Meeting of Shareholders of April 18, 2008 that a dividend of CHF 17.00 per registered share B be distributed for the 2007 business year.

The consolidated balance sheet showed equity of CHF 636 million on December 31, 2007 (compared to CHF 601 million on December 31, 2006). The yearend balance sheet equity ratio stood at 32.2 percent.

Kuoni continued to pursue its policy of adding premium and specialist tour operators to the group, and made five further acquisitions in this segment in the course of 2007.

The positive prognoses are based on encouraging booking figures for the first few weeks of 2008: booking levels as at March 10, 2008 for the Kuoni Group’s tour operating business were 12 percent above their prior-year equivalents in Swiss-franc terms.