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Annual Report 2010
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 April 14, 2011, 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 13
KILROY travels 10
KILROY education 11
KILROY group travel 12
Team Benns 14
Financial Review 15
Management’s Statement 16
Accounting Policies 18
Profit & Loss Account 20
Balance Sheet 21
Cash Flow Statement 23
Notes to the Accounts 24
Board of Directors and Management 30
Addresses 31
The History and the Legend 32
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 17
3 Key Figures in DKK
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
2010 2009 2008 2007 2006
Profit & Loss Account (DKK million)
Turnover 1,492 1,072 1,122 1,094 1,023
EBITDA 35 26 22 12 4
EBIT 27 17 11 -4 -10
Net financials 4 5 7 6 2
EBT 30 22 18 2 -8
Net profit for the year 22 16 13 2 -7
Balance Sheet (DKK million)
Cash and bonds 184 193 158 162 162
Current assets 255 251 222 227 205
Total assets 282 262 238 253 239
Capital expenditure 23 2 4 8 8
Equity 49 40 27 30 38
Current liabilities 218 219 204 217 191
Cash flow from operating activities -1 48 11 39 21
Key Figures
EBITDA - Margin (%) EBITDA / turnover (excl. other operat ing income) 2.3 2.4 2.0 1.1 0.4
EBIT - Margin (%) EBIT / turnover 1.8 1.6 0.9 -0.3 -1.0
Return on assets (%) EBIT / total assets 9.5 6.7 4.4 -1.5 -4.2
Return on equity (%) Net prof it (excl. extraordinary income/expenses) / average equity 48.8 48.5 46.4 4.6 -36.1
Liquidity ratio (%) Current assets / current liabilit ies 117.1 114.6 108.6 104.9 107.7
Equity ratio (%) Equity (excl. minority interests) / total assets 17.5 15.3 11.2 11.8 16.0
Earnings per share (DKK) Net prof it (excl. extraordinary income/expenses) / number of shares 122.3 90.6 73.3 8.8 -24.8
Cash flow per share (DKK) Cash f low from operat ing act ivit ies / number of shares -4.7 267.9 62.0 219.5 73.7
Proposed dividend (DKK million) 19.0 14.0 17.0 1.5 0.0
324 280 304 318 303
Note. Due to the merger of KILROY Denmark and Jysk Rejsebureau per 1 January 2010 the key f igures for the year 2010 are not fully comparable to the years 2006-2009
Average number of full-time employees
(FTE)
4 Key Figures in EUR
2010 2009 2008 2007 2006
Profit & Loss Account (EUR million)
Turnover 200.3 144.0 150.4 146.8 137.2
EBITDA 4.7 3.5 3.0 1.7 0.6
EBIT 3.6 2.3 1.4 -0.5 -1.3
Net financials 0.5 0.6 1.0 0.8 0.3
EBT 4.1 3.0 2.4 0.3 -1.0
Net profit for the year 2.9 2.2 1.8 0.2 -0.9
Balance Sheet (EUR million)
Cash and bonds 24.7 25.9 21.3 21.7 21.8
Current assets 34.2 33.8 29.7 30.5 27.6
Total assets 37.9 35.3 32.0 33.9 32.0
Capital expenditure 3.1 0.3 0.5 1.1 1.1
Equity 6.6 5.4 3.6 4.0 5.1
Current liabilities 29.2 29.5 27.4 29.0 25.6
Cash flow from operating activities -0.1 6.4 1.5 5.3 2.8
Key Figures
EBITDA - Margin (%) EBITDA / turnover (excl. other operat ing income) 2.3 2.4 2.0 1.1 0.4
EBIT - Margin (%) EBIT / turnover 1.8 1.6 0.9 -0.3 -1.0
Return on assets (%) EBIT / total assets 9.5 6.7 4.4 -1.5 -4.2
Return on equity (%) Net prof it (excl. extraordinary income/expenses) / average equity 48.8 48.5 46.4 4.6 -36.1
Liquidity ratio (%) Current assets / current liabilit ies 117.1 114.6 108.6 104.9 107.7
Equity ratio (%) Equity (excl. minority interests) / total assets 17.5 15.3 11.2 11.8 16.0
Earnings per share (EUR) Net prof it (excl. extraordinary income/expenses) / number of shares 16.4 12.2 9.8 1.2 -3.3
Cash flow per share (EUR) Cash f low from operat ing act ivit ies / number of shares -0.6 36.0 8.3 18.9 9.9
Proposed dividend (EUR million) 2.6 1.9 2.3 0.2 0.0
324 280 304 318 303
Note. Due to the merger of KILROY Denmark and Jysk Rejsebureau per 1 January 2010 the key f igures for the year 2010 are not fully comparable to the years 2006-2009
Average number of full-time employees
(FTE)
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
5
See pages 8-12 for further information about the business areas.
The KILROY Group
Brand Overview
Denmark
Finland
The Netherlands
Norway
Sweden
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 five 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.
Iceland
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
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)
Primo Tours A/S (Denmark)
Managementselskabet af 11.11.2009 ApS (Denmark)
40%
15%
15%
Amsterdam Bergen Copenhagen Gothenburg Groningen Helsinki Holstebro Lund Odense Oslo Reykjavik Stockholm Trondheim Turku Utrecht Uppsala Aalborg Aarhus
Legal Structure as per April 14, 2011
Locations
The KILROY Group
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
Overall, the year 2010 was both eventful and positive for the KILROY Group.
Turnover reached DKK 1,492 million, up from DKK 1,072 million in 2009.
Operating profit (EBITDA) was DKK 35 million, up from DKK 26 million in 2009.
The KILROY Group closed 2010 with a profit before tax (EBT) of DKK 30 million.
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 39% increase in turnover had the following main drivers:
Additional business stemming from the merger in Denmark between KILROY and Jysk Rejsebureau.
Increased sales through the online channel in all markets.
Reclassification of sales: Rapid development of some areas has made it necessary to classify certain business segments as individual travel rather than group travel. The turnover of these segments was 51 million in 2010 and the estimated effect on EBT was positive with DKK 6.8 million. The accounting principles for the KILROY Group remain unchanged. (See page 16.)
EBITDA followed the trend from recent years and increased to DKK 35 million. However, the profit margin declined, due mainly to two key factors:
Changes in sales channel mix.
The above-mentioned merger in Denmark did not meet the budgeted profitability in 2010. Changes within the organisation, administrative processes and systems had a negative impact during the first part of the year. By the end of 2010, profitability returned to the budgeted level for the merged unit.
The EBITDA development for the KILROY Group is shown in the chart below.
Market environment
2010 offered its usual share of external events that impact the industry. Those aside, the market environment was generally positive.
Distribution
The online sales channel is still growing, and this channel is often the first step in a chain of sales transactions.
Offline sales channels are important to travellers planning long and complicated journeys, and to very young travellers preparing their first trip. The shops must develop constantly in order to ensure significant and relevant value propositions. Larger units have proven necessary to develop valued competences. In 2010 two small sales shops in Sweden were closed and two shops were merged in Norway. In Denmark four shops were closed as a result of the merger mentioned above at the beginning of 2010.
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
Report of the Board of Directors
4
12
22
26
35
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
0
5
10
15
20
25
30
35
2006 2007 2008 2009 2010
EBITDA
EBITDA mDKK
EBITDA %
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
the demands of a special segment of students and other young people who often travel for longer periods. Those 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 mainstream settlement procedures.
The unique youth and student ticket has been the instrument for serving more than 4,000 young people while en route in 2010 – a 25% increase compared to 2009. This service is provided online from a central service team in Copenhagen.
Mergers, acquisitions & liquidations
The Danish merger between KILROY and Jysk Rejsebureau took effect on January 1, 2010. The merged company, Horizons A/S, furthermore acquired all Danish travel activities from Wasteels Rejser A/S in August 2010.
From 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.
KILROY travels Spain S.A. was liquidated at the end of 2010. The company had not been trading since 2004.
Finally, a process has been initiated to merge KILROY Invest A/S into KILROY International A/S with effect from January 1, 2011. This merger to simplify and optimise the business operation. Changes in Danish legislation have made this merger relevant.
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 high priority, both within mainstream software and customised applications. During 2010, the IT platform for the entire Group was upgraded. KILROY is now using only the latest and cutting-edge technology in all parts of the KILROY IT infrastructure.
The majority of operational IT costs are based on long-term maintenance agreements that ensure ongoing application updates, and adoption of the newest market trends and developments.
Brand developments
Jysk Rejsebureau has from 2010 been established as an independent brand within the KILROY Group.
During 2010, Team Benns updated its visual identity to reflect the current business segments. The various Team Benns product lines were launched in
Norway using the sub-brand, “tur.no”.
An overview of the Group‟s brands and markets is found on page 5.
National head offices
Also during 2010, the national head offices in Helsinki, Oslo and Stockholm were relocated. The new locations are in city centres, and in areas with heavy traffic of youth and students.
Organisation
The average number of employees (fulltime equivalent) in 2010 was 324 compared with 280 in 2009. The increase is closely linked to the merger with Jysk Rejsebureau in Denmark.
Once again, there is every reason to thank our employees for their dedicated effort in 2010. It has been an extremely busy year as a consequence of the many planned projects – but also external factors like the volcanic ash cloud from Iceland have required extraordinary efforts throughout the organisation. The organisation has navigated with a determination that bodes well for the future.
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.
Report of the Board of Directors
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
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.
The chart below illustrates the development in the number of employees and the continued increase in 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 a specifically written policy for social responsibility. However, in 2010 the KILROY organisation prepared a Code of Conduct that will be 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 in 2011, and issues such as illness, supplier evaluation and corruption are expected to be included in the code.
Shareholder information
The ownership structures remained unchanged during 2010. 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 itself is owned by a group of Nordic investors who have, or have had, management positions within the Group.
Expectations for 2011
The expectation for 2011 is that the KILROY Group will deliver a result close to the result of 2010 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
2006 2007 2008 2009 2010
Employees
Number of FTE Turnover per FTE
mDKK
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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.kilroytravels.com
KILROY travels
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
Denmark24%
Finland15%
Netherlands11%
Norway29%
Sweden21%
2010
Split of turnov er
per market
2010
Split of turnov er
per market
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.
Read more at www.kilroyeducation.com
KILROY education
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
Denmark7%
Finland10%
Netherlands9%
Norway39%
Sweden35%
2010
Split of turnov er
per market
2010
Split of turnov er
per market
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.
Read more at www.kilroygroups.com
KILROY group travel
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
Denmark39%
Finland22%
Norway30%
Sweden9%
2010
Split of turnov er
per market
13
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
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
Denmark100%
2010
Split of turnov er
per market
Denmark97%
Norway3%
2010
Split of turnov er
per market
14
TEAM BENNS is a travel agency specialising in a number of unique concepts, and is a leader in all of its business areas.
With a starting point in group travel, TEAM BENNS has expanded its product portfolio to include skiing, safaris, cruises, wellness and comprehensive destination programs in USA/Canada and Australia/New Zealand, aimed at young families. 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 / safaritur.no / gruppetur.no
Team Benns
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
KILROY International A/S’ net result in 2010 is DKK 21.6 million, compared with DKK 16.2 million in 2009.
Shareholders’ equity
The share capital remains unchanged at DKK 17.8 million. Free reserves including proposed dividend total DKK 31.6 million. Total Group shareholders‟ equity is DKK 49.4 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 19.0 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 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 2011
No material events have occurred after the balance sheet date, which affect the assessment of the Annual Report 2010.
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 travels
KILROY education
KILROY group travel
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 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, 2010.
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, 2010 and of the results of the Group's and the Company's operations and cash flows for the financial year January 1 – December 31, 2010.
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, April 14, 2011
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 travels
KILROY education
KILROY group travel
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
Independent Auditor's Report to the Shareholders of KILROY International A/S
We have audited the consolidated financial statements and the parent company financial statements of KILROY International A/S for the financial year January 1 – December 31, 2010, pp. 18-29. The consolidated financial statements and the parent company financial statements comprise accounting policies, profit & loss account, balance sheet, cash flow statements and notes for the Group as well as for the parent company. The consolidated financial statements and the parent company financial statements have been prepared in accordance with the Danish Financial Statements Act.
In addition to our audit, we have read the report of the Board of Directors prepared in accordance with the Danish Financial Statements Act and issued a statement in this regard.
Management’s responsibility for the annual report
Management is responsible for the preparation and fair presentation of the consolidated financial statements and the parent company financial statements in accordance with the Danish Financial Statements Act. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of consolidated financial statements and parent company financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the circumstances. Further, it is the responsibility of Management to prepare a Management's review that gives a fair review in accordance with the Danish Financial Statements Act.
Auditor’s 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 Danish Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance 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 and fair presentation of the consolidated financial statements and the parent company financial statements 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 valuating 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 audit opinion.
Our audit did not result 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 2010 and of the results of the Group's and the parent company's operations and cash flows for the financial year January 1 – December 31, 2010 in accordance with the Danish Financial Statements Act.
Statement on the report of the Board of Directors
Pursuant to the Danish Financial Statements Act, we have read the report of the Board of Directors. We have not performed any other 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 given in the report of the Board of Directors is consistent with the consolidated financial statements and the parent company financial statements.
Copenhagen, April 14, 2011
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 travels
KILROY education
KILROY group travel
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
General
The Annual Report for 2010 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.
Companies in which the Group owns 20-50% of the respective company‟s equity, but of which the Group does not hold a controlling share, are referred to as affiliated companies. The value of the Group‟s share is calculated according to its share of
the affiliated company‟s net assets. Entries relating to affiliated companies connected to KILROY International A/S and operated in conjunction with other shareholders are prorated in proportion to the size of the share, when compiling consolidated accounts.
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.
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 affiliated companies, if the re-taxation is expected to be realised by the affiliated 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.
Accounting Policies
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
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 and affiliated companies
Participating interests in subsidiaries are valued according to the equity method at the proportionate share of the net assets.
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 net of provisions for possible losses.
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.
Other provisions
Other provisions include an estimated liability, which will presumably lead to an outflow of resources.
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”.
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.
Accounting Policies
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
20 Profit & Loss Account
January 1 - December 31
2010 2009 2010 2009
Note kDKK kDKK kDKK kDKK
1 Turnover 1,492,059 1,072,049 11,403 7,932
Cost of products sold -1,267,397 -890,126 2,670 530
Gross profit 224,662 181,923 14,073 8,462
2 Sales and administrative costs -63,167 -54,192 605 139
3 Personnel costs -126,848 -101,757 -21,242 -16,985
EBITDA 34,647 25,974 -6,564 -8,384
4 Depreciation -7,951 -8,476 -449 -552
EBIT 26,696 17,498 -7,013 -8,936
7 Result from shares in subsidiaries - - 25,717 21,733
5 Financial income, net 3,706 4,628 1,964 1,772
EBT 30,402 22,126 20,668 14,569
6 Tax -8,581 -5,967 922 1,590
Net profit for the year 21,821 16,159 21,590 16,159
Gain/loss attributable to minority -231 0
Result attributable to KILROY International A/S 21,590 16,159
Proposed appropriation of net result:
Retained earnings at the beginning of the year 22,209 8,795
Net profit for the year 21,590 16,159
Paid dividend -14,000 -7,000
Other free reserves 1,782 4,255
31,581 22,209
Proposed dividend -19,000 -14,000
Retained earnings at the end of the year 12,581 8,209
Group Parent
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
21 Balance Sheet
December 31
ASSETS 2010 2009 2010 2009
Note kDKK kDKK kDKK kDKK
FIXED ASSETS
Software 2,792 145 0 0
Goodwill 17,737 6,139 0 303
4 Intangible fixed assets 20,529 6,284 0 303
Land and buildings 815 845 0 0
Leasehold improvements 2,017 1,046 172 255
IT hardware and other equipment 2,155 2,436 133 178
4 Tangible fixed assets 4,987 4,327 305 433
7, 11 Shares in subsidiaries - - 74,838 69,111
Other securities 1,686 355 - -
Financial fixed assets 1,686 355 74,838 69,111
TOTAL FIXED ASSETS 27,202 10,966 75,143 69,847
CURRENT ASSETS
Inventories 4,005 2,791 0 0
Trade debtors 28,716 22,199 1,134 189
Amounts due from affiliated companies 22,652 25,955 30,162 29,276
Other receivables 3,272 3,148 545 7,709
Prepaid expenses and accrued income 11,932 4,548 184 13
Total receivables 66,572 55,850 32,025 37,187
Bonds and securities 660 425 355 425
Cash at bank and in hand 183,803 192,364 67,755 91,096
TOTAL CURRENT ASSETS 255,040 251,430 100,135 128,708
TOTAL ASSETS 282,242 262,396 175,278 198,555
Group Parent
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
LIABILITIES 2010 2009 2010 2009
Note kDKK kDKK kDKK kDKK
EQUITY
Share capital 17,839 17,839 17,839 17,839
Proposed dividend 19,000 14,000 19,000 14,000Retained earnings 12,581 8,209 12,581 8,209
49,420 40,048 49,420 40,048
Minority interests 5,615 0 0 0
8 TOTAL EQUITY 55,035 40,048 49,420 40,048
PROVISIONS
9 Other provisions 5,953 0 0 1,766
6 Deferred tax 2,679 2,916 2,594 4,267
TOTAL PROVISIONS 8,632 2,916 2,594 6,033
LONG-TERM LIABILITIES
10 Long-term debt 800 0 0 0
TOTAL LONG-TERM LIABILITIES 800 0 0 0
CURRENT LIABILITIES
Trade creditors 153,730 108,908 1,232 3,616
Amounts owed to subsidiaries 0 0 114,622 141,354
Other liabilities 17,333 13,659 4,406 4,228
Accrued liabilities 29,023 15,780 3,004 3,276
11 Advance payments 17,689 81,085 0 0
TOTAL CURRENT LIABILITIES 217,775 219,432 123,264 152,474
TOTAL LIABILITIES 282,242 262,396 175,278 198,555
12 Contingent assets, liabilities and secured debt
13 Subsidiaries
14 Related parties
Group Parent
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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 Cash Flow Statement
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
January 1 - December 31
2010 2009 2010 2009kDKK kDKK kDKK kDKK
EBIT 26,696 17,498 -7,013 -8,936
Adjustments for non-cash items
Depreciation 7,951 8,476 449 552
Exchange rate and other adjustments 2,815 5,454 413 1,593
Working capital
Change in inventories -201 1,440 0 0
Change in receivables -8,321 7,410 -2,802 2,937
Change in other provisions 5,953 -4,500 0 -3,000
Change in trade creditors 21,105 -6,249 -2,383 -26,768
Change in other liabilities -53,153 19,195 -26,940 42,027
Cash flow from operating activities before financial items 2,845 48,724 -38,276 8,405
Net interest income, etc. 2,989 3,428 1,551 125
Paid taxes -6,674 -4,360 1,828 -1,378
Cash flow from operating activities -840 47,792 -34,897 7,152
Purchase/sale of shares -789 -165 -6,940 0
Net purchase of plant, operating equipment etc. -19,133 -1,937 -18 -242
Cash flow from investment activities -19,922 -2,102 -6,958 -242
Capital contributions in subsidiaries 0 0 0 -2,605
Loan to affiliated companies 3,303 -4,299 3,303 -4,299
Bankdebt 317 0 0 0
Dividends paid/received -14,000 -7,000 15,141 7,488
Cash flow from financial activities -10,380 -11,299 18,444 584
Net cash flow from operating, investing and financing activities -31,142 34,391 -23,411 7,494
Liquid assets at the beginning of the year 192,789 158,398 91,521 84,027
Liquid assets from acquired companies 22,816 0 0 0
Liquid assets at the end of the year 184,463 192,789 68,110 91,521
Not all figures above can be found directly in the Annual Report, mainly due to the merger of KILROY Denmark and Jysk Rejsebureau.
Group Parent
24 Notes to the Accounts
1. TURNOVER 2010 2009 2010 2009
kDKK kDKK kDKK kDKK
Sales through subsidiaries 1,491,504 1,070,314 11,403 7,865
Sales through agents 555 1,735 0 67
Total turnover 1,492,059 1,072,049 11,403 7,932
KILROY distributes only within the European region, which is considered as one geographic segment.
2. FEES TO AUDITORS APPOINTED AT THE GENERAL MEETING 2010 2009 2010 2009
kDKK kDKK kDKK kDKK
Audit services 848 807 230 230
Tax assistance 122 122 75 75
Other assurance engagements 21 21 0 0
Other assistance 223 140 81 144
Total auditor fees 1,214 1,090 386 449
3. PERSONNEL COSTS 2010 2009 2010 2009
kDKK kDKK kDKK kDKK
Salaries and wages 107,020 85,974 19,645 15,820
Social security contributions 7,172 7,969 235 737
Pensions 5,220 3,135 838 121
Other personnel costs 7,436 4,679 524 307
Total personnel costs 126,848 101,757 21,242 16,985
Group Parent
Group Parent
Group Parent
In 2010 the Group employed an average of 324 persons, full time equivalent (2009: 280). In 2010 the parent company employed an average
of 43 persons, full time equivalent (2009: 36).
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
25 Notes to the Accounts
4. FIXED ASSETSSoftware Goodwill
Land &
buildings
Leasehold
improvements
IT and other
equipment Total
kDKK kDKK kDKK kDKK kDKK kDKK
GROUP
Cost at the beginning of 2010 44,585 25,594 1,668 8,446 34,557 114,850
Exchange rate adjustments 0 463 0 112 452 1,027
Additions in year 3,691 16,191 0 1,571 1,452 22,905
Disposals in year 0 -2,653 0 -249 -1,511 -4,413
Cost at the end of 2010 48,276 39,595 1,668 9,880 34,950 134,369
Depreciation at the beginning of 2010 -44,440 -19,455 -823 -7,400 -32,121 -104,239
Exchange rate adjustments 0 -338 0 -111 -497 -946
Disposals in year 0 2,653 0 248 1,382 4,283
Depreciation in year -1,044 -4,718 -30 -600 -1,559 -7,951
Depreciation at the end of 2010 -45,484 -21,858 -853 -7,863 -32,795 -108,853
Carrying amount at the end of 2010 2,792 17,737 815 2,017 2,155 25,516
Carrying amount at the end of 2009 145 6,139 845 1,046 2,436 10,611
PARENT
Cost at the beginning of 2010 0 4,046 0 858 847 5,751
Additions in year 0 0 0 18 0 18
Disposals in year 0 0 0 0 0 0
Cost at the end of 2010 0 4,046 0 876 847 5,769
Depreciation at the beginning of 2010 0 -3,743 0 -603 -669 -5,015
Disposals in year 0 0 0 0 0 0
Depreciation in year 0 -303 0 -101 -45 -449
Depreciation at the end of 2010 0 -4,046 0 -704 -714 -5,464
Carrying amount at the end of 2010 0 0 0 172 133 305
Carrying amount at the end of 2009 0 303 0 255 178 736
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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
5. FINANCIAL INCOME, NET 2010 2009 2010 2009
kDKK kDKK kDKK kDKK
Financial income 4,233 5,968 2,596 4,470
Financial expenses -527 -1,340 -632 -2,698
Financial income, net 3,706 4,628 1,964 1,772
Of the parent company´s financial income, kDKK 30 is interest from subsidiaries (2009: kDKK 218) and kDKK 1,173 from affiliated companies (2009: kDKK 1,069)
Of the parent company´s financial expenses, kDKK 332 is interest to subsidiaries (2009: kDKK 2,246).
6. TAX 2010 2009 2010 2009
kDKK kDKK kDKK kDKK
Current tax charge 8,395 5,921 0 0
Joint taxation contributions 0 0 751 -1,110
Adjustments to previous year´s tax charge 0 73 0 -790
Change in deferred tax and other changes 186 -27 -1,673 310
Total tax 8,581 5,967 -922 -1,590
Deferred tax primo 2,916 2,999 4,267 3,957
Addition due to merger 279 0 0 0
Exchange rate and other adjustments -423 -56 0 0
Change in deferred tax, net -93 -27 -1,673 310
Deferred tax ultimo 2,679 2,916 2,594 4,267
In 2010, kDKK 6,674 (2009: kDKK 4,360) was paid as corporate tax in the Group.
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.
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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. SHARES IN SUBSIDIARIES 2010 2009kDKK kDKK
Cost at the beginning of the year 109,380 106,775
Purchase of shares and capital contributions 6,940 2,605
Cost at the end of the year 116,320 109,380
Adjustments at the beginning of the year -46,382 -53,322
Exchange rate adjustments 2,083 3,668
Profit after tax and minority 31,958 18,519
Dividends from subsidiaries -29,141 -15,247
Adjustments at the end of the year -41,482 -46,382
Adjustments (negative equity, subsidiaries) 0 6,113
Book value at the end of the year 74,838 69,111
Profit after tax in subsidiaries 31,958 18,519
Write off of receivables in subsidiaries -7,750 0
Assignment of liabilities to parent company 1,509 3,214
Result from shares in subsidiaries 25,717 21,733
A list of subsidiaries is shown on page 29
Parent
27 Notes to the Accounts
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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. EQUITY 2010 2009 2010 2009
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 22,209 8,795 22,209 8,795
Exchange rate and other adjustments 1,782 4,255 1,782 4,255
Dividend paid during the year -14,000 -7,000 -14,000 -7,000
Proposed dividend 19,000 14,000 19,000 14,000
Net result of the year 2,590 2,159 2,590 2,159
Retained earnings at the end of the year 31,581 22,209 31,581 22,209
Total equity 49,420 40,048 49,420 40,048
Minority shareholders' share of equity at the beginning of the year 0 0
Additions/Disposals 5,384 0
Share of net result 231 0
Minority shareholders' share of equity at the end of the year 5,615 0
Total Group shareholders' equity 55,035 40,048
Group Parent
28 Notes to the Accounts
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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. OTHER PROVISIONS
Deferred income that is expected to mature in future years. Uncertainty exists for both amount and maturity.
10. LONG-TERM DEBT 2010 2009 2010 2009
kDKK kDKK kDKK kDKK
Bankdebt 317 0 0 0
Employee bonds 483 0 0 0
Total Long-term debt 800 0 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
29 Notes to the Accounts
13. SPECIFICATION OF SUBSIDIARIES Country City CurrencyShare
Capital
Capital
Share
Dividend
2010
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 Invest A/S 1) Denmark Copenhagen DKK 1,200 100% 0
KILROY group travel A/S Denmark Copenhagen DKK 1,100 100% 10,000
- OurWorld A/S Denmark Holstebro DKK 500 40% 0
1) See Report of the Board of Directors page 6
14. RELATED PARTIES
Related parties are SSTS A/S, Knabrostraede 8, DK-1210 Copenhagen, which owns 100% of the shares in KILROY International A/S.
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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. ADVANCE PAYMENTS
Primarily prepayments from travel ordered for 2011.
12. CONTINGENT ASSETS, LIABILITIES AND SECURED DEBT
The KILROY Group has issued guarantees/letters of credit for an amount of mDKK 25.6 (2009: mDKK 35.6) that is secured by an equal cash
pledge of deposits.
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 626 (2009: kDKK 1,150). In total kDKK 626 is due in 2011.
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 29,278 (2009: kDKK 14,120). In total kDKK 8,823 is due in 2011.
30
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 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 April 14, 2011
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 travels
KILROY education
KILROY group travel
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
31
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 D FIN-00100 Helsinki, Finland
Eerikinkatu 2 FIN-20100 Turku, Finland kilroy.fi
KILROY Netherlands B.V. Singel 413-415 NL -012 WP Amsterdam, Netherlands
Oude kijk in´t Jatstraat 21 NL-9712 EA Groningen, Netherlands
Vinkenburgstraat 15 NL-3512 AA 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
Auditor KPMG Borups Alle 177 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 April 14, 2011
Key Figures The KILROY
Group
Report of the Board of
Directors
Jysk Rejsebureau
KILROY travels
KILROY education
KILROY group travel
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 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.
1987 SSTS opens a wholesale company in Spain.
1991 SSTS and the Nordic travel agencies are merged into one group with SSTS as the mother company. The group‟s name is changed to KILROY.
1994 KILROY acquires the German youth travel agency ARTU.
1996 KILROY establishes its own sales company in the Netherlands.
1998 Axcel IndustriInvestor a.s., Copenhagen takes over an equity stake in the mother company, KILROY travels International A/S.
1999 KILROY acquires Benns Rejser A/S in Holstebro, Denmark. The company name of Benns Rejser is later changed to MyPlanet.
2001 KILROY acquires the Danish group travel company TEAM TRAVEL. Subsequently, all group travel activities in MyPlanet and KILROY travels Denmark are merged into the new company, KILROY group travel A/S. KILROY travels Germany - ARTU GmbH is sold.
2003 KILROY acquires the Danish ski group travel operator “Peer Gynt”.
2004 KILROY stops trading in the Spanish market.
2005 KILROY divests of the company MyPlanet KILROY acquires the new ski operator Ski-experten.
2006 KILROY acquires the ski operator Qvistgaard Rejser. HYY Group takes over Axcel IndustriInvestor a.s.‟ equity stake in KILROY travels International A/S.
2007 KILROY acquires all educational activities from International Education Centre (IEC), Norway. The ownership structure is changed. A group of Nordic investors acquires 100% of the shares in KILROY travels International A/S.
2008 KILROY acquires all educational activities from IEC Online, Finland.
2009 The name of the parent company of the Group is changed to KILROY International A/S
KILROY acquires all educational activities from StudyWorld, the Netherlands.
2010 KILROY merges its Danish subsidiary, KILROY Denmark with Jysk Rejsebureau under the holding name, Horizons.
Horizons acquires all travel activities from Wasteels Rejser A/S, Denmark.
KILROY acquires a 40% stake in OurWorld A/S, Denmark.
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 travels
KILROY education
KILROY group travel
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
KILROY International A/S • Knabrostræde 8 • DK-1210 Copenhagen K • CVR-no. 10 91 52 95
Annual Report 2010