annual report 2010 - kilroy · mgmt.'s statement accounting policies profit & loss...

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)


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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

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10

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25

30

35

2006 2007 2008 2009 2010

EBITDA

EBITDA mDKK

EBITDA %


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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.



Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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.


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0

50

100

150

200

250

300

350

2006 2007 2008 2009 2010

Employees

Number of FTE Turnover per FTE

mDKK


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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)


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




and the Legend

Auditors‟ Report

21 Balance Sheet

December 31

ASSETS 2010 2009 2010 2009


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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




and the Legend

Auditors‟ Report

22 Balance Sheet

December 31

LIABILITIES 2010 2009 2010 2009


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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




and the Legend

Auditors‟ Report

23 Cash Flow Statement


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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).


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




and the Legend

Auditors‟ Report


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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




and the Legend

Auditors‟ Report


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.


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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



Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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



Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


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.


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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.


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




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!


Group


Directors

Jysk Rejsebureau

KILROY travels

KILROY education

KILROY group travel


Mgmt.'s Statement

Accounting Policies


Balance Sheet

Cash Flow Statement




and the Legend

Auditors‟ Report

KILROY International A/S • Knabrostræde 8 • DK-1210 Copenhagen K • CVR-no. 10 91 52 95

Annual Report 2010

annual report 2010 - kilroy · mgmt.'s statement accounting policies profit & loss...

Documents