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Notes to the Consolidated Financial Statements

1. Exchange Rates

The following exchange rates were used for the Group’s most important currencies:

2. Acquisitions

Acquisitions 2011

  • Lime Travel AB, Stockholm
    (100% acquired 1 March 2011), Tour Operating Business
  • Gullivers Travel Associates, London
    (100% acquired 1 May 2011), Destination Management Services

In addition, our shareholdings in the following company were increased in the course of the year:

  • UTE Megapolus Group Co Ltd, Moscow
    (from 80% to 92%), Tour Operating Business

Acquisitions 2010

  • TBA Global, New York
    (asset deal effective 1 February 2010), Destination Management Services
  • Krone Golf Tours, Copenhagen
    (asset deal effective 1 September 2010), Tour Operating Business
  • Gulf Dunes LLC, Dubai
    (100% acquired 1 December 2010), Destination Management Services
  • Reem Tours and Travel LLC, Dubai
    (100% acquired 1 December 2010), Destination Management Services
  • Best Tours S.p.A., Milan
    (100% acquired 31 December 2010), Tour Operating Business
  • Best Tours, Brussels
    (asset deal effective 31 December 2010), Tour Operating Business

In addition, our shareholdings in the following company were increased in the previous year:

  • Kuoni Private Safaris (E.A.), Nairobi
    (from 80% to 100%), Destination Management Services

Book value and purchase price of the acquisitions

Gullivers Travel Associates (GTA), London

The Kuoni Group acquired Gullivers Travel Associates (GTA) in full, together with its subsidiaries in Europe, Asia and the Americas, at the beginning of May 2011. GTA is one of the world’s leaders in the rapidly-growing online travel services market, with operations in 26 cities. GTA’s online reservation facilities were used to book some 12 million hotel bednights in 2010.

GTA’s core business is centred on hotel reservations, coach services, transfers, city sightseeing tours and destination services for group and individual travellers. In strategic terms, GTA excellently enhances Kuoni’s traditional tour operating business. The new acquisition also fits well into Kuoni Destination Management (KDM): while GTA’s strengths lie in the swiftly-growing online business-to-business services market, KDM specialises in group leisure travel arrangements. GTA is also strongly anchored in the rapidly-expanding Asian market. GTA’s results are incorporated into the reporting segment Destinations.

The GTA purchase price amounts to USD 664 million in cash. The assets and liabilities in the table were taken over as shown: The acquisitionrelated intangible assets identified were valued at CHF 273 million while non-tax-deductible goodwill amounted to CHF 600 million. The resulting goodwill largely reflects the value of the synergies and future earnings which Kuoni expects to generate from the acquisition. The purchase price is not yet final, and may change as a result of still-pending contractual conditions. In view of the fact that the corresponding valuations have not yet been completed, the information on the assets and liabilities acquired is not final.

GTA reported turnover of CHF 1 346 million for the eight-month period of its Kuoni Group ownership in 2011 and an EBIT after amortisation of intangible assets of CHF 16.4 million. The Kuoni Group incurred acquisition and integration costs of CHF 20.2 million as a result of the acquisition. These are included in “Other operating expense”.

If the acquisition had been effected as of 1 January 2011, GTA would have contributed a CHF 472 million higher turnover and a CHF 8 million lower EBIT result.

Other acquisitions 2011

The second acquisition in 2011, of Lime Travel, is of minor importance in view of its size. The purchase price amounted to SEK 21 million in cash. The company generated turnover of CHF 9 million in the ten-month reporting period and achieved a breakeven EBIT result.

Had the two acquisitions been effected on 1 January 2011, the Kuoni Group would have reported an additional CHF 474 million of turnover and a CHF 8 million lower EBIT result for the year.

Acquisitions 2010

The acquisitions effected in 2010 are of negligible significance in terms of their size. The total purchase price of all these acquisitions amounted to CHF 19.1 million in cash. The companies acquired generated an aggre- gate turnover of CHF 28.9 million under their Kuoni Group ownership in 2010 (or a turnover of CHF 140.3 million for the full year) and reported an aggregate negative EBIT (after amortisation of intangible assets) of CHF 0.2 million (and a negative EBIT of CHF 2.2 million for the full year).

If all these acquisitions had been completed on 1 January 2010, the Kuoni Group would have reported a CHF 111.4 million higher turnover and a CHF 2.0 million lower EBIT for the 2010 business year.