kuoni012_communique.indd 1 19.03.13 09:47

InformatIonnIne-month busIness update 20137 november 2013

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HigHligHts of first nine montHs of 2013

■■■■ 2.3% organic growth

■■■■ gross profit margin rises to 18.8% (2012: 18.5%)

■■■■ much improved operating results: eBitA of CHf 141.2 million (2012: CHf 83.9 million), eBit of CHf 113.2 million (2012: CHf 27.3 million)

■■■■ net result up to CHf 28.4 million (2012: CHf – 7.0 million)

■■■■ increased organic growth from visa services provider Vfs global (+ 21.8%), from fit Business Unit (+ 5.4%) and from remaining tour operating activities within outbound europe/Asia (+ 5.7%)

■■■■ free cash flow up 82% to CHf 166.8 million (2012: CHf 91.6 million)

HigHligHts of Q3 2013

■■■■ 2.4% organic growth

■■■■ significant rise in operating earnings (eBit) to CHf 97.0 million (2012: CHf 58.5 million)

■■■■ improved operating earnings (eBit) for group travel and fit units, for tour operator activities within outbound nordic, europe/Asia, and for Vfs global.

oUtlook 2013

■■■■ expected eBit for 2013 in the range of CHf 135– 145 million is confirmed

■■■■ 6-year bond issue with an amount of CHf 200 mil- lion and a coupon of 1.50% successfully placed on 28 october 2013

■■■■ key figUres

posItIve summer quarter leads to sIgnIfIcant Improvement In results and hIgher free cash flow for the fIrst nIne months of 2013 – outlook for full year confIrmed

CHF million 1.1.– 30.9.2013 1.1.– 30.9.2012Change

in %

Turnover 4 386.8 4 475.6 – 2.0Gross profit 824.9 826.0 – 0.1Gross profit margin (%) 18.8 18.5 Earnings before interest, taxes and amortisation (EBITA)  141.2 83.9 + 68.3EBITA margin (%) 3.2 1.9 Earnings before interest and taxes (EBIT) 113.2 27.3 + 314.7EBIT margin (%) 2.6 0.6 Net result 28.4 – 7.0 Free cash flow 166.8 91.6 + 82.1

3InformatIon nIne-month busIness update 2013

posItIve summer quarter leads to sIgnIfIcant Improvement In results and hIgher free cash flow for the fIrst nIne months of 2013 – outlook for full year confIrmed

■■■■ Peter meier, Ad interim Ceo of kUoni

groUP, mAde tHe following Comments on

tHe resUlts

“the summer quarter, always an important one for kuoni group, ensured that operating earnings (eBit) and free cash flow for the first nine months of 2013 were markedly better than for the same period last year. group travel, fit, the european tour operating business and Vfs global, our visa services provider, all contributed positively. Based on these results and the current business performance, we are confirming our forecast of increased earnings for the 2013 financial year as a whole.”

■■■■ CUrrent trAding 2013

As at 3 november 2013, changes in booking levels and turnover for 2013 at the different business units compared with the equivalent prior-year period were as follows in swiss franc (CHf) and local currency (lC) terms:

CHF LCGlobal Travel Services

Group Travel – 1% – 2%FIT (Fully Independent Traveller) + 6% + 6%

Outbound & Specialists Outbound Nordic 0% – 1%Outbound Europe /Asia1) 0% + 2%Destination Management Specialists – 1% + 2%

VFS Global Number of visa applications processed + 26%

1 remaining activities (Switzerland, UK, Benelux Specialists, India, Hongkong/China)

■■■■ oUtlook 2013

for 2013 as a whole the kuoni group expects operat- ing earnings (eBit) in the range of CHf 135 – 145 mil- lion, confirming the estimate announced on 22 August 2013.

kuoni travel Holding Ag successfully placed a 6-year bond issue with an amount of CHf 200 million and a coupon of 1.50% in the swiss capital market (maturing on 28 october 2019). the proceeds of the issue were used to refinance the company’s existing CHf 200 mil- lion bond, which fell due on 28 october 2013.

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■■■■ first nine montHs of 2013

kuoni group generated turnover of CHf 4 387 million in the first nine months of 2013 (2012: CHf 4 476 mil- lion). organic turnover growth came to 2.3%. the net effect of acquisitions/divestments came to – 4.4%. this was caused by the divested loss-making european tour operating activities. Currency influences had only a small positive influence on turnover of 0.1%. the organic growth was due to higher turnover at remaining activities of business in all divisions.

gross profit, at CHf 825 million, was practically un- changed on the year-back figure (2012: CHf 826 mil- lion), but the gross profit margin increased to 18.8% (2012: 18.5%).

operating earnings before amortisation (eBitA) rose significantly to CHf 141.2 million (2012: CHf 83.9 mil- lion).

operating earnings (eBit) rose sharply to CHf 113.2 mil- lion (2012: CHf 27.3 million). this figure includes the exceptional items communicated on 22 August 2013 and reported with the half-year results (see page 5: exceptional items).

net result improved to CHf 28.4 million (2012: CHf – 7.0 million). this includes the cost of withdraw-ing from loss-making european tour operating activities, as well as the one-time positive effect of the change to a defined-contribution pension scheme in switzerland.

Cash flow from operating activities came to CHf 194.2 million (2012: CHf 128.5 million). free cash flow stood at CHf 166.8 million (2012: CHf 91.6 million).

kuoni group’s equity at 30 september 2013 came to CHf 738 million (31.12.2012: CHf 700 million). the equity ratio came to 27.7% (31.12.2012: 29.1%).

■■■■ tHird QUArter 2013

turnover came to CHf 1 747 million (2012: CHf 1 835 mil- lion), with organic growth of 2.4%. the reduction in turnover was caused by the withdrawal from loss-mak-ing european tour operating activities.

the gross profit margin increased to 19.3% (2012: 18.6%).

operating earnings before amortisation (eBitA) rose to CHf 106.2 million (2012: CHf 95.5 million). operating earnings (eBit) went up to CHf 97.0 mil- lion (2012: CHf 58.5 million). group travel, fit, tour operating business within outbound nordic and outbound europe/Asia, and visa services provider Vfs global all contributed to this Q3 result. the prior year eBit figure was pulled down by CHf 27.2 million associated with the announced exit from loss-making european tour operating activities.

kuonI group fIgures

5InformatIon nIne-month busIness update 2013

■■■■ disPosAl of loss-mAking eUroPeAn toUr

oPerAting ACtiVities ComPleted in first

HAlf of 2013

on 28 february 2013 kuoni group completed its announced withdrawal from tour operating activities in italy. on 31 march 2013 the withdrawal from tour operating activities in france was also completed. the closures of the tour operating business in Belgium and the octopustravel.com online platform were also completed during the first half of 2013. the CHf 3.2 mil- lion of operating losses sustained by these units in 2013 were charged against operating earnings (eBit). financial expense in the first nine months was also reduced by realised losses of CHf 44.4 million from the sale of subsidiary companies. the overall effect in the net result thus came to CHf 47.6 million, which is lower than the originally planned costs for 2013 of CHf 56 million. the costs were recognised in reporting for the first half of 2013 and so are included in the results for the first nine months as well. there will be no further exceptional expenses in the 2013 financial year relating to the withdrawal from loss-making european tour operating activities.

■■■■ effeCts of CHAnge from defined Benefit

to defined ContriBUtion Pension sCHeme in

switzerlAnd

the pension plan in switzerland is switching from a defined benefit to a defined contribution scheme on 1.1.2014. in accordance with the applicable ifrs rules, a non-recurring, non-cash exceptional effect of CHf 34.2 million was reported for the first half of 2013; this is also included in the figures for the first nine months. this had a positive impact on operating earnings (eBit). All business areas with employees in switzerland are affected (group travel CHf 3.0 mil- lion, fit CHf 1.3 million, outbound europe/Asia CHf 23.6 million, Corporate CHf 6.3 million).

■■■■ iAs 19 reVised

the application of ifrs standard iAs 19 revised (employee Benefits) requires a restatement of 2012 figures. in 2013 this reduced prior-year operating earnings (eBit) by CHf 2.7 million.

exceptIonal Items

none of the exceptional items had any effect on the third quarter of 2013 as they had all already been reported in the results for the first half of 2013 published on 22 August 2013. minor changes are currency-related and included in the nine-month results.

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results fIrst nIne months of 2013

■■■■ BreAkdown of tUrnoVer

■■■■ BreAkdown of eArnings Before AmortisAtion (eBitA)

■■■■ BreAkdown of oPerAting eArnings (eBit)

CHF million1.1.– 30.9.2013 1.1.– 30.9.2012 Change

in %1.1.– 31.12.2012

Global Travel Services 2 135 2 069 3.2 2 666Group Travel 756 764 – 1.0 964FIT (Fully Independent Traveller) 1 379 1 304 5.8 1 703

Outbound & Specialists 2 123 2 312 – 8.2 3 048Outbound Nordic 789 771 2.3 993Outbound Europe / Asia 1 099 1 328 – 17.2 1 738* remaining activities 1 041 1 002 3.9 1 321* sold / closed activities 59 326 – 81.9 417Destination Management Specialists 284 272 4.4 400

VFS Global 180 152 18.4 205Less turnover elimination between Divisions – 51 – 57 10.5 – 74Total 4 387 4 476 – 2.0 5 845

CHF million1.1.– 30.9.2013 1.1.– 30.9.2012

restated 11.1.– 31.12.2012

restated 1

Global Travel Services 79.6 70.6 84.8Group Travel 27.7 20.1 21.7FIT (Fully Independent Traveller) 55.9 54.3 68.4Acquisition & Integration cost – 4.0 – 3.8 – 5.3

Outbound & Specialists 48.4 6.4 19.2Outbound Nordic 26.7 25.7 40.6Outbound Europe / Asia 22.5 – 22.0 – 33.7* remaining activities 25.6 1.4 8.8* sold / closed activities – 3.1 – 23.4 – 42.5Destination Management Specialists – 0.8 2.7 12.3

VFS Global 31.0 26.3 35.5Corporate – 17.8 – 19.4 – 21.8Total 141.2 83.9 117.7

CHF million1.1.– 30.9.2013 1.1.– 30.9.2012

restated 11.1.– 31.12.2012

restated 1

Global Travel Services 60.0 51.2 58.9Group Travel 24.2 16.5 16.9FIT (Fully Independent Traveller) 39.8 38.5 47.3Acquisition & Integration Cost – 4.0 – 3.8 – 5.3

Outbound & Specialists 40.0 – 30.8 – 20.9Outbound Nordic 26.0 25.0 39.5Outbound Europe / Asia 17.8 – 55.8 – 69.1* remaining activities 21.0 – 3.8 2.1* sold / closed activities – 3.2 – 52.0 – 71.2Destination Management Specialists – 3.8 0.0 8.7

VFS Global 31.0 26.3 35.5Corporate – 17.8 – 19.4 – 21.8Total 113.2 27.3 51.7

1 Adjustment of prior year’s figures due to the application of IAS 19, see page 5

7InformatIon nIne-month busIness update 2013

■■■■ gloBAl trAVel serViCes

this division’s business activities generated turnover of CHf 2 135 million in the first nine months of 2013 (2012: CHf 2 069 million). operating earnings before amortisation (eBitA) rose to CHf 79.6 mil- lion (2012: CHf 70.6 million). earnings before interest and taxes (eBit) went up to CHf 60.0 million (2012: CHf 51.2 million).

the group travel business saw turnover fall slightly to CHf 756 million (2012: CHf 764 million). organic growth came to 1.0%. eBitA improved significantly to CHf 27.7 million (2012: CHf 20.1 million). eBit rose to CHf 24.2 million (2012: CHf 16.5 million). this positive development is mainly due to the good earnings performance in the Japanese and Chinese markets during the summer quarter.

the fit business area posted growth. turnover rose to CHf 1 379 million (2012: CHf 1 304 million). organic growth came to 5.4%. eBitA improved to CHf 55.9 million (2012: CHf 54.3 million). eBit came to CHf 39.8 million (2012: CHf 38.5 million). the number of booked hotel room nights went up by 3.8% to 9.6 million. the Asia/Pacific, middle east, and northern europe regions in particular reported stronger demand.

■■■■ oUtBoUnd & sPeCiAlists

this division’s business activities generated turnover of CHf 2 123 million in the first nine months of 2013 (2012: CHf 2 312 million). the reduction in turn- over is largely attributed to the withdrawal from loss-making european tour operating activities. operat-ing earnings before amortisation (eBitA) came to CHf 48.4 million (2012: CHf 6.4 million). eBit came to CHf 40.0 million (2012: CHf – 30.8 million).

the outbound nordic unit increased its turnover to CHf 789 million (2012: CHf 771 million). organic growth came to 0.1%. eBitA stood at

CHf 26.7 million (2012: CHf 25.7 million), while eBit came to CHf 26.0 million (2012: CHf 25.0 million). growth was held back in the summer quarter by the travel ban to egypt, though some of the demand was diverted to the greek islands and the Canaries.

the remaining activities within the outbound europe/Asia unit increased turnover to CHf 1 041 mil- lion (2012: CHf 1 002 million). organic growth came to 5.7% and eBitA improved to CHf 25.6 million (2012: CHf 1.4 million). eBit rose to CHf 21.0 million (2012: CHf – 3.8 million). this improvement is due to greater consumer demand in the summer quarter in the Uk and swiss markets. the one-off positive effect of the change in the pension scheme in switzer-land (see page 5) is also included in these results.

the destination management specialists unit gene-rated turnover of CHf 284 million (2012: CHf 272 mil- lion). organic growth came to – 2.3%. eBitA stood at CHf – 0.8 million (2012: CHf 2.7 million), while eBit came to CHf – 3.8 million (2012: CHf 0.0 million). in the third quarter, destinations in Asia/Pacific and india were boosted by increased demand, while the middle east region once again felt the negative impact of highly competitive source markets in southern europe and russia.

■■■■ Vfs gloBAl

the visa services provider posted continued strong growth in the first nine months of 2013. turnover rose to CHf 180 million (2012: CHf 152 million). organic growth came to 21.8%. eBitA and eBit stood at CHf 31.0 million (2012: CHf 26.3 million). Vfs global processed a total of 14.3 million visa applications, an increase of 28% on the same period last year. the number of Visa Application Centres (VACs) increased by 258. As at 30 september 2013, 1 060 VACs were in operation in 91 countries.

results fIrst nIne months of 2013

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Income statement (condensed)

CHF million1.1.– 30.9.2013 1.1.– 30.9.2012

restated 1Change in % 1.1.– 31.12.2012

restated 1

Turnover 4 386.8 4 475.6 – 2.0% 5 845.5

Direct costs – 3 561.9 – 3 649.6 2.4% – 4 743.0Gross profit 824.9 826.0 – 0.1% 1 102.5

Personnel expense – 405.4 – 453.7 10.6% – 605.3Marketing and advertising expense – 50.6 – 58.3 13.2% – 74.0Other operating expense – 188.2 – 194.1 3.0% – 253.6Share in result from joint ventures – 3.1 0.0 0.0% – 0.4Depreciation – 36.4 – 36.0 – 1.1% – 51.5

Earnings before interest, taxes and amortisation (EBITA) 141.2 83.9 68.3% 117.7Amortisation – 28.0 – 29.4 4.8% – 38.8Impairment 0.0 – 27.2 0.0% – 27.2

Earnings before interest and taxes (EBIT) 113.2 27.3 314.7% 51.7

Financial income 4.4 4.4 0.0% 5.7Financial expense – 54.1 – 24.5 – 120.8% – 51.3

Result before taxes 63.5 7.2 781.9% 6.1

Income taxes – 35.1 – 14.2 – 147.2% – 20.5Net result 28.4 – 7.0 – 14.4

Of which: Attributable to non-controlling interests 0.7 0.9 1.6Attributable to shareholders of Kuoni Travel Holding Ltd. 27.7 – 7.9 – 16.0

Basic earnings per registered share A in CHF 1.44 – 0.41 – 0.84Diluted earnings per registered share A in CHF 1.44 – 0.41 – 0.84

Basic earnings per registered share B in CHF 7.21 – 2.07 – 4.19Diluted earnings per registered share B in CHF 7.21 – 2.07 – 4.19

1 Adjustment of prior year’s figures due to the application of IAS 19, see page 5

9InformatIon nIne-month busIness update 2013

about kuonI group

kuoni group (zurich stock exchange siX: kUnn) is a global travel-related service provider with leading positions in its areas of activity and sustainable profi- table growth prospects. in 2012 kuoni group posted turnover of CHf 5.8 billion and had 12 090 employees (fte) at the end of 2012.

kuoni group is active in three main segments: destination & Accommodation services, tour operat-ing and Visa Processing services.

destination & Accommodation services involve pro- curement and supply of services as a specialised wholesaler and supplier. As a wholesaler kuoni group provides a broad selection of self-contracted and availability-secured hotel accommodation and land components to online & offline travel agencies, tour operators, and aggregators via its efficient, worldwide, online distribution system. in addition kuoni group provides a specialised comprehensive portfolio of travel services at destinations to online & offline travel agencies and tour operators handling their group and individual traveller clients, with its dedicated employees on site.

tour operating activities focus on outbound leisure travel from european and Asian source markets and offer a variety of tailor-made, individual and packaged holidays to end consumers and online & offline travel agencies.

Visa Processing services leverage their expertise and scale as the world’s largest outsourcing and technology services specialist for diplomatic missions and governments worldwide that outsource the non-judge-mental, administrative parts of the visa application, and other consular processes.

kuoni group’s commercial success builds on its superior service offerings for end consumers, suppli-ers, tour operators, online & offline travel agencies, aggregators, and government clients. kuoni group is able to grow its business profitably and provide benefits to travellers, business partners, society, its employees and shareholders.

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11InformatIon nIne-month busIness update 2013

agenda 2014

■■■■ fUrtHer informAtion

Media

Peter Brun Chief Communications Officer Kuoni Travel Holding Ltd Neue Hard 7 CH - 8010 Zurich P + 41 (0)44 277 48 28 M + 41 (0)76 370 24 24 peter.brun@kuoni.com

Analysts and Investors

Laurence Bienz Head of Investor Relations Kuoni Travel Holding Ltd Neue Hard 7 CH - 8010 Zurich P + 41 (0)44 277 45 29 laurence.bienz@kuoni.com

kuoni group will report on its business performance as follow:

Annual report 2013 18 march 2014

the general meeting of shareholders will be held in zurich on 25 April 2014.

■■■■ disClAimer

This communication contains statements that constitute forward-looking statements. In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations, business and certain of our strategic plans and objectives.

Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Kuoni Travel Holding’s and/or affiliates’ (referred to as Kuoni) ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors detailed in Kuoni’s past and future filings and reports, including media releases, reports and other information posted on Kuoni’s websites or in other form.

Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Kuoni disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.

www.kuoni.com

kuoni012_communique.indd 4 19.03.13 09:47