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Content Page Page

Key Figures and Key Ratios ...... 1 Management’s Statement and Auditor’s Report .. 11

The KILROY Group ...... 2 Accounting Policies ...... 12-13

Group Structure and Locations ...... 3 Profit & Loss Account ...... 14-15

Report of the Board of Directors ...... 4-5 Balance Sheet ...... 16-17

KILROY Individual Travel ...... 6-7 Cash Flow Statement ...... 18

KILROY Group Travel ...... 8 Notes to the Accounts ...... 19-24

MyPlanet ...... 9 Board of Directors and Management ...... 25-26

Financial Review ...... 10 Office Addresses ...... 27-28

KILROY travels International A/S Knabrostræde 8 DK-1210 K CVR-nr. 10 91 52 95

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 document text shall be governing text for all purposes and in case and in case of any discrepancy the Danish wording shall be applicable. The Danish-language annual report is subject to approval at the ordinary general meeting on may 3rd, 2005, and will be filed with the Danish Commerce and Companies Agency. rev_indhold_02maj.qxd 09-05-2005 15:23 Side 1

Key Figures and Key Ratios

DKK million 2000 2001 2002 2003 2004 Profit and loss account Turnover 1,576 1,539 1,440 1,260 1,209 EBITDA 37 38 29 19 21 EBIT 16 13 4 -3 2 Net financials 5 7 6 -1 3 EBT 21 20 10 -4 1 Profit attributable to KILROY travels International A/S 13 13 5 -5 0 Balance sheet Cash and bonds 367 343 297 216 213 Current assets 427 399 352 282 262 Total assets 503 491 436 363 332 Capital expenditure 36 44 21 22 11 Group/Parent company equity 66 79 89 59 69 Current liabilities 404 379 315 258 239 Cash flow from operating activities 58 26 -33 -57 26 Key ratios EBITDA - ratio (%) 12.8 12.7 9.9 7.4 8.6 EBIT - ratio (%) 1.0 0.9 0.3 -0.3 0.2 Return on assets (%) 3.1 2.7 0.9 -0.9 0.6 Return on equity, KILROY (%) 20.8 18.5 6.5 -3.7 6.3 Liquidity ratio (%) 105.6 105.3 111.8 109.3 109.6 Equity ration (%) 13.0 16.1 20.4 16.2 20.9 Earnings per share (DKK) 55.4 57.1 23.3 -11.8 14.5 Cash flow per share (DKK) 247.8 110.4 -142.8 -243.4 93.1 Dividend (DKK million) 6.5 0 20 0 0 Dividend (%) 28 0 85 0 0 Average number of employees, full-time equivalent 562 588 568 489 438

Definitions: EBITDA-ratio: EBITDA /gross profit (ex. other operating income) Cash flow per share (CFPS): Cash flow from operating activities/number of shares Equity ratio: Equity (ex. minority interests)/total assets Return on equity: Net profit/average equity EBIT-ratio: EBIT/turnover Dividend ratio: Dividend/share capital Earnings per share (EPS): Net profit (ex. extraordinary income/expense) per share Liquidity ratio: Current assets/current liabilities Return on assets: Operating profit (EBIT)/total assets

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The KILROY Group Dreams … we make them happen! KILROY travels International A/S has a very special mission called, "Dreams … we make them happen!" We are a group of travel companies, based in Europe, who specialises in value-added travel for students, young people and members of the MyPlanet Friendship Societies. The dreams we realize are those of discovery, years made substantial investments in IT and Web Cost efficiency - Streamlining the operation to exploration, learning and friendship. We help our development to support this business philosophy. document cost efficiency at the highest industry level. customers find the meaning of life by experiencing the world. We focus on young people but also welcome Focus on performance Human resources - Having the best and most the "young in mind." Our third business driver is focusing on both personal competent staff serving our customers better than and corporate achievements. Thus, the KILROY Group anyone else. Traditional travel companies sell airline tickets and book is divided into three business units, which all have full accommodation. But the KILROY Group's products and profit/loss responsibility: Industry dynamics services encompass the whole travel experience - from The future of the travel industry still seems to be planning the trip and seeking relevant information, to z KILROY Individual Travel, with core focus on students turbulent with a number of structural changes ahead. the actual flight, accommodations, adventures, new and young people travelling individually. It consists of But in the KILROY Group, we believe that the dream cultures, and the memories and useful experiences to KILROY Explorer, specialising in long-haul travel by of exploring the world is a growing and inexhaustible share with others who also love to travel. providing superb personal service and destination trend, especially in the segments we serve. The custo- knowledge to customers, and KILROY Online, which mers' demand for individualized and specialized Adding value for the customer sells flight tickets and specific non-flight products via services is expected to grow faster in the years to The most important business driver for the KILROY the Internet. come. Exploiting the growing importance of the Group is adding relevant value for our customers. Internet, and being able to swiftly adapt to the rules of We know what's in and what's out; what's hot, and z KILROY Group Travel, with core focus on youth the industry's new business models, will be the keys to what's not. and students travelling in groups for educational, travel companies' future success. recreational and other organised purposes. This requires staff competence, which is a fundamental This is why we in the KILROY Group continuously component of our service offering. We express this z MyPlanet, serving only the members of the adjust our business platforms to anticipate and adapt competence directly through our sales consultants, and MyPlanet Friendship Societies. to market dynamics. We have defined the Web as our indirectly through our various Web sites. This makes us customers' first point of contact, reflecting the fact that a highly appreciated authority in our niche segments. Each business unit is monitored with specific key performance indicators, and these are reflected in the the Web is by far our target groups' most important source of inspiration. To this, we add our reliable brands and clear segmenta- objectives and action plans for each individual staff tion, which makes the KILROY Group stand out in a member. We constantly streamline our business processes in vast and highly competitive marketplace. All three business units have the same order to reduce transaction costs. We analyse our customers' needs and preferences in order to be able Cost efficiency fundamental strategic pillars, defined as the KILROY M A R C H: to add and deliver the right value. We constantly invest Adding value for our customers at the lowest possible in our brands to underline our reliability for customers in cost is our second-most important business driver. Market leadership - Being the leading player in the a highly turbulent market. And we continue to build ever Travel is a low-margin industry, and it's only possible to segments we serve. closer relationships with suppliers, who are committed maintain a competitive edge by constantly improving to our philosophy of serving niche markets in a unique productivity. Availability - Offering the customer the most conveni- and dedicated way. ent and cheapest distribution access at any given time. The KILROY Group defines the Web as the customer's The KILROY Group is prepared to play an active role in first point of contact. Technology and simplicity are the Relevance - Adding value for the customer in the consolidation process that is expected to take place keys to improved efficiency, and we have over the past accordance with his or her preferences. in the travel industry in the coming years.

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Group Structure and Locations, May 2005

KILROY travels International A/S (Denmark)

Corporate Functions Business Units

MyPlanet KILROY Group Travel KILROY Individual Travel (Friendship Societies)

KILROY group travel A/S KILROY travels Denmark A/S MyPlanet International A/S Copenhagen, Holstebro Copenhagen, , , Holstebro, Copenhagen (Denmark) (Denmark)

KILROY group travel KILROY travels Norway AS MyPlanet Norway AS Oslo Oslo, Bergen, Stavanger, Tromsø, Oslo (Norway) Trondheim, Kristiansand (Norway)

KILROY group travel KILROY travels Sweden AB MyPlanet Sweden AB Stockholm Stockholm, Gothenburg, Lund, Malmö, Stockholm, Gothenburg (Sweden) Umeå, Uppsala, Linköping, Örebro (Sweden)

KILROY group travel OY KILROY travels Finland AB MyPlanet Australia PTY Ltd. Helsinki Helsinki, Tampere, Turku, Jyväskylä Sydney (Finland) (Australia)

KILROY travels Netherlands B.V. Amsterdam, Groningen, Rotterdam Utrecht, Leiden

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Report of the Board of Directors The general demand for travel recovered somewhat in 2004 but the aggressive price wars between general commercial airlines and low-cost carriers on the European market continued to put price pressure on flight tickets. Despite these challenges, the KILROY Group managed to improve financial results from its losses in 2003 through restructuring, cost efficiency and focus on the Web as the primary interface with customers. KILROY Group turnover in 2004 reached DKK 1,209 rally declined, and the majority of airlines have moved to in the travel industry, and is one of the main drivers in million, a marginal drop of 4% from DKK 1,260 a 0-commission platform. the KILROY Group's cost reduction programs. In 2004, million in 2003, mainly driven by the continued capacity costs were reduced in line with our strategy of price pressure on short-haul traffic. EBITDA Demand for air travel increased in a number of markets bringing transaction costs down to make KILROY one of reached DKK 21.4 million, an increase from DKK in 2004, but the recent years' drop in the yield per the most competitive players in the market. Total produc- 19.0 million in 2003, resulting in an EBIT of DKK 2.1 customer has put pressure on the KILROY Group to tivity increased 7% in 2004 as expected. To support the million, compared to an EBIT of DKK -3.2 million in change its product mix towards more profitable, productivity drive, further investments in IT technology 2003.The KILROY Group closed the year 2004 with non-flight products. Due to our extensive focus on and Web development were made in all three business a profit before tax and extraordinary items of DKK product mix, the KILROY Group managed to maintain units. 5.2 million. After extraordinary items, the EBT the 2003 gross profit percent into 2004. The business unit MyPlanet also gave priority to result ended with DKK 1.3 million. The Internet has firmly established itself as a key technology and organisational investments related to the distribution channel for travel products, showing high Market conditions and the KILROY Group development of a new customer relations management double-digit growth rates. The KILROY Group sees the (CRM) system, which was fully implemented in mid- Due to the introduction of aggressive business models Web as the first point of customer contact, and the by the different players in the travel value chain, the 2004. The business unit KILROY Group Travel focused growing traffic figures on different KILROY Web sites on finalizing the development of a new, fully integrated KILROY Group's consolidated turnover, gross profit confirm this business strategy. and EBITDA did not fully live up to our expectations. front, mid and back office system. However, restructuring of the internal business models, Also as a result of market competition and the trend in Total investment in 2004 reached DKK 11 million, most with special focus on the business unit KILROY online services, the business unit KILROY Individual of which was IT/Web-related, creating a platform for Individual Travel, continues at an accelerated pace and Travel has implemented a new business model that further productivity increases in the future. has begun to show positive results. splits the unit into two areas: KILROY Explorer, which focuses primarily on long-haul traffic, and KILROY Industry restructuring The belligerent market penetration of the low-cost Online, which sells air tickets and non-flight products The travel industry is restructuring rapidly, and changes carriers continued in 2004 as the low-cost carriers online. in the KILROY Group's business models have received forced traditional carriers to restructure their business urgent priority. KILROY Individual Travel has, as models while fighting for market share.Yield has gene- Technology is the main driver for improved productivity mentioned above, split into two cost-effective business

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Report of the Board of Directors (...continued) areas, and MyPlanet has given priority to the develop- Risk to the business 2005 are moderately positive. Customer demands are ment of both its member-based CRM and new, profita- The major risk to the travel industry is reduced expected to grow stemming, from positive economic ble membership services. 2004 was MyPlanet's first full profitability in the value chain, caused by continuing forecasts for our main markets, although the year of activity on the Australian market. low flight prices and low yield, overcapacity in flight Netherlands in 2004 was still in the grip of recession. The business unit KILROY Group Travel has focused seats and customers serving themselves via the Interest rates are expected to slightly increase during on using the Web to add further value to its existing Internet. The only short-term way out of this dilemma second half but remain relatively low, which will continue services. The business unit has also seen very positive is an increase in demand, and this is finally appearing to hamper possibilities of major improvement in the growth related to the new business area, skiing in several key markets. The niche segments the KILROY Group's financial income. holidays, introduced in 2003 and marketed under the Group serves are expected to regain demand more TEAM BENNS brand. strongly than the average market segments. MyPlanet expects the customer demand for Australia/ New Zealand and USA/Canada destinations to be Adding value The Association for Tourism and Leisure Education further intensified during 2005. Thus a two-digits organic All three KILROY business units are fully dedicated to (ATLAS) has forecast that the student and youth travel growth is expected. Continuing high focus on product segmentation and adding value. The focus on niche market would increase its share of all tourism journeys mix and productivity will improve the MyPlanet profita- segments supports the development of competencies in 2005. The mature and more affluent customers that bility in 2005. that add value for customers. This is a process which MyPlanet serves are also predicted to increase their tra- has become even more important in response to the vel activities in the coming years. KILROY Group Travel is expected to continue its growth pressure on flight prices. Despite the increasing demand, the major challenge of in Sweden, Norway and Finland. In Denmark, public reduced profitability per passenger remains. Thus, in the educational budget cuts have had a negative impact, Our one-stop shopping philosophy was enhanced long term, further restructuring and consolidation of the but part of the lost turnover will be regained through further in all business units in 2004. It builds on travel industry must take place. The players who have new product features under the TEAM BENNS brand, understanding the customer, technology support and business models with the right balance between cost such as skiing trips. Productivity increases related to staff competence, irrespective of whether the customer efficiency, the ability to add relevant value, and a the implementation of a new IT platform have already contact is online or through traditional channels. We demand-driven structure will be the winners. begun to materialise. have seen positive results both in product mix and The KILROY Group's operational restructuring and customer satisfaction with our philosophy. KILROY Individual Travel is expecting a turnover growth investments all aim at finding the strongest possible driven mainly by the KILROY Online business model. Suppliers and the KILROY Group position in this new business reality. Activities to maintain customer traffic are planned. The In general, airlines are increasingly bypassing travel Shareholder information yield per customer is still highly dependent on the gross agencies in order to obtain direct customer contact. 63.4% of the shares in KILROY travels International A/S profit margin on flight products, so focus on non-flight This development has also hit the KILROY Group. are owned by the Real Estate Funds of the Student products will be further intensified. Due to earlier The clear niche focus of all three business units has Union of the University of Helsinki (HYY). The Real IT investments, an increase in productivity is also however put us in a position to strengthen our special Estate Funds of HYY is the parent corporation for the expected in 2005. partnerships with a range of airlines who recognise the group of consolidated Finnish property and service For the KILROY Group as a whole, a slight decrease efficiency with which KILROY serves our - and their - companies (HYY Group). in gross profit margin is expected due to continuing customers. Axcel IndustriInvestor a.s., with 29.5%, is owned by ATP pressure on flight prices. However, due to further A number of major airlines have terminated their special (Danish Labour Market Supplementary Pension Fund), productivity gain in all three business units, an increase SATA youth & student ticket agreements, which have FIH (Finance for Danish Industry), Investeringsselskabet in earnings is expected during 2005. put pressure on the part of financial income categorised af 30.4.1992 (Radiometer's former primary sharehol- Management of the KILROY Group under other income. However, KILROY has negotiated der), Kirkbi (Lego), NIB Capital (Holland), PKA (Pension On 1 January 2005, the Board of Directors employed new ticket concepts, and other airlines have entered into Fund Administration) and Nordea Bank Danmark. Claus H. Hejlesen as new Managing Director of SATA ticket agreements. In 2004 approximately 2/3 of Nordic student organizations and others own the KILROY travels International A/S. He replaced Mogens KILROY Individual Travel's flight turnover was still remaining 7.1% of KILROY travels International A/S. Jønck. Claus H. Hejlesen has previously worked for the generated from special youth and student arrange- KILROY Group (1990-2002). ments. Close cooperation with non-flight suppliers was Expectations for 2005 also intensified in 2004, and the KILROY Group signed Barring any major terrorist attacks, natural disasters or a number of international partnership agreements. outbreaks of epidemic diseases, our expectations for The KILROY Group 5 rev_indhold_02maj.qxd 09-05-2005 15:23 Side 6

KILROY Individual Travel - kilroytravels.com Market conditions prices. In 2004 demand for travel increased in the short-haul business was lost to low-cost carriers and KILROY Individual Travel is the market leader in Nordic countries, especially in Denmark, where a tax traditional airlines. The ratio between long-haul sales individualized travel for students and young people reform and general economic optimism fuelled spen- and short-haul sales is now in balance for future in the countries where we operate: Denmark, Finland, ding. In the Netherlands, however, travel demand growth. the Netherlands, Norway and Sweden. In total, decreased as a result of general recession in that KILROY Individual Travel operates 27 shops, six call country. Both sales and gross profit productivity per staff centres, an Internet booking engine and two service increased in 2004, fuelled by staff competence offices, in Bangkok and Sydney. Competition was still fierce in all markets. The contin- upgrade programmes, focus on selling the right ued price war between traditional and low-cost airlines products and reaping the benefits of a fully integrated In 2004 KILROY closed down its wholesale business decreased air product prices and margins even further front-to-back IT platform. in Spain, as there was no longer a sustainable during 2004, and continued to impact on the earnings business platform for serving a "middleman" function of KILROY Individual Travel. Despite the continued decline in air ticket margins in in selling student flight tickets to the travel agencies. 2004, KILROY Individual Travel managed to maintain Business operations overall margins at the same level as 2003. This was In the fourth quarter of 2003, KILROY Individual Travel KILROY Individual Travel is confident that its strategic possible due to a considerable increase in the sales implemented a new business model, splitting into two roadmap and business model are the right solution of non-flight products with high margins, and to business areas called KILROY Explorer and KILROY for addressing the future challenges of this sector of KILROY's successful renegotiation of terms with key Online. KILROY Explorer focuses primarily on selling the travel market. Although the business unit KILROY strategic airline partners. A capacity cost reduction long-haul travel by providing superb personal service Individual Travel has improved its business performan- programme generated more than DKK 15 million in and destination knowledge to customers, at highly ce during 2004, the delivered profitability is still savings in 2004. competitive prices, via KILROY shops and call at an unacceptable level. centres. The launch of the KILROY Explorer business has KILROY Individual Travel managed to grow its market been performing in accordance with expectations in KILROY Online sells flight tickets and specific non- share on long-haul travel, but, the total turnover both turnover and earnings. KILROY Individual Travel flight products on the Internet, also at competitive declined by 10%, as further market share in the was able to increase the turnover on long-haul travel

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compared to 2003. In Denmark and Finland, KILROY confidence that online sales are back on track. who still feel "young in mind," and subscribe to the significantly increased market share on long-haul travel, KILROY way of travelling, are also welcome. while in other markets, it was able to maintain or Web - the customer's first point of contact KILROY Individual Travel will continue efforts to capture slightly increase market share. KILROY Individual Travel relies on the Internet as the potential of this particular segment, which encom- the customer's first point of contact. Thus, KILROY pass first and foremost former KILROY customers. The business unit KILROY Individual Travel appears continued to invest in the KILROY Web site in 2004. to have found a sustainable market platform with the Management: Claus H. Hejlesen, Managing Director Explorer business approach. The main focus has been to encourage the sales of flight tickets and non-flight products, and to improve KILROY Online, on the other hand, did not live up to the content of the Web site to ensure that the curious expectations either in turnover or earnings. Turnover customer receives all relevant information about his or grew with double digits, but technical challenges during her travel needs. high season prevented the growth that was anticipated. Target Group The main technical challenges were eventually solved, Students and youth continue to be the core customers so KILROY Individual Travel enters 2005 with the of KILROY Individual Travel's business. Other people

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KILROY Group Travel - kilroygroups.com; team-benns.com Market conditions A new business area for TEAM BENNS - skiing of KILROY Group Travel's strategy is to maintain close KILROY Group Travel is the market leader in the group holidays - is still developing positively, and the potential cooperation and dialogue with the educational travel segments in the Nordic countries of Denmark, for future growth is promising. The flight ticket price war community. A range of new concepts and destinations Finland, Norway and Sweden. It specialises in youth among low-cost carriers continues to put pressure on was launched again in 2004, through a broad portfolio and students travelling in groups for educational and margins, but KILROY Group Travel has managed to of specialised catalogues, online marketing and the other organised purposes. It consists of the brands compensate for this by increasing productivity and constant upgrading of competence in all sales staff. KILROY Group Travel and TEAM BENNS, and serves intensifying partnerships with selected suppliers. more than 150,000 passengers a year. Management: Allan Qvist, Managing Director Implementation of a new, fully integrated IT business The general market demand in 2004 was stronger than and accounting system, ACE Tour, in 2003 and 2004 in 2003, but flight margins were still under considerable has contributed to the increased productivity. pressure from fierce competition. KILROY Group Travel has in 2004 implemented a Business operations revised Web strategy, making the Internet one of the Financial performance in all countries was highly main drivers for future business development and positive in 2004 as a result of previous years' increases in productivity. investments. This supported the KILROY Group Travel brand position as a highly professional provider of KILROY Group Travel's goal is to have the best and educational trip concepts to the entire academic sector. most relevant products available. Thus, an integral part

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MyPlanet - myplanet.com Market conditions will operate both companies under the same manage- for Canada/USA. They are divided into inspiration and MyPlanet serves the approx. 33,000 members of the ment. product sections, and stand out from other catalogues MyPlanet Friendship Societies. in the market by expressing MyPlanet's passion and In Sweden, MyPlanet Education was in 2004 sold to expertise in these countries. In 2004 MyPlanet experienced growth in all markets - KILROY travels Sweden in order to improve the Australia, Denmark, Norway and Sweden - and in all business structure. MyPlanet Education's customer They also go deeper than traditional tourism brochu- product areas - Australia, Canada, New Zealand and segment coincides with that of KILROY travels, so res with themes that focus on "meeting the well- USA. This contributed to business growth of around marketing opportunities are expected to be greater known, the lesser known and the completely 12%. Nevertheless, there is still room for expansion under the revised organisation. unknown." on Canada and USA, as market opportunities have yet to be fully exploited. MyPlanet's new customer relations management sys- In 2004 the two Friendship Societies in Norway tem (CRM) was fully implemented in the Scandinavian merged into one - MyPlanet Friendship Society of Business operations countries in mid-2004, providing new opportunities for Norway. MyPlanet's collaboration with the Friendship 2004 was the first full year of MyPlanet's activity on the collection, organisation and utilisation of customer Societies remains in sharp focus and both sides will the Australian market. Development has been in line data in sales and marketing. At the end of the year, continue to work at developing this unique concept, with expectations, and MyPlanet saw growth in MyPlanet launched a new Web site, which is linked to and to use technical tools in making member services inbound traffic from Scandinavian travellers, as well the CRM system, and this will be marketed as the first even more active. as outbound traffic to Scandinavia, in co-operation point of contact for customers. with the Scandinavian Friendship Society of Australia. Despite increasing pressure on margins for air tickets MyPlanet will continue to enhance and improve its and non-revenue bearing taxes, MyPlanet maintained MyPlanet's investment in 2003 in Bentours Int. Pty. Web presence, as MyPlanet members of all ages the same satisfactory level of profitability as in 2003. Ltd., which is Australia's leading specialist in travel make increasing use of the Web. These new tools will to Scandinavia, has been successful, both in terms help MyPlanet develop the activities and services Management: of earnings and in co-operation in general. As a result, defined in its strategy for differentiating itself in the Annelise Dam Larsen, Managing Director MyPlanet assumed the remaining 2/3 stake in market. Also in 2004, MyPlanet published new travel Bentours Int. Pty. Ltd. as of January 1, 2005, and catalogues - one for Australia/New Zealand and one

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KILROY travels International A/S’ share of 2004 net result is DKK 0.1 million, compared with DKK -5.4 million in 2003.

Shareholders’ equity The significant amount spent on IT investments is part Auditing The share capital has increased to DKK 27.8 million, of the long-term growth strategy for the KILROY group. The KILROY Group only uses internationally accredited due to a subordinated convertible debt of DKK 10.0 auditors. million was converted from debt to equity. Financial management Free reserves from returned earnings total The KILROY Group places liquid assets in the HYY Group Annual Report DKK 41.6 million. Total Group shareholders’equity short-term money market, and in publicly traded The Annual Report of HYY Group Ltd, is prepared increased to DKK 69.5 million at the end of the year, government securities and mortgage backed bonds separately and can be obtained from HYY Group Ltd, due to: with a relatively short average maturity. P.O. Box 1099, Mannerheimintie 5C, FIN-00101 Helsinki, upon request. z a capital increase of DKK 4.4 million It is the policy of the KILROY Group that the liquidity z a net result 2004 of DKK 0.1 million ratio always is above 100 in order to ensure that all The Annual Report of KILROY travels International A/S short-term liabilities can be paid immediately at any is included in the HYY Group Ltd. Annual Report. Dividends and dividend policy time. It is also the policy that subsidiaries do not hold The Board recommends no payment of dividend liquid assets in excess of those required for normal for 2004. Future dividends will be proposed with operations, and they may not issue debt locally or consideration for the KILROY Group’s expansion plans, make other financing arrangements/agreements. continued consolidation and liquidity. The financial risks of doing business in many Investments countries and currencies are managed according In 2004, the KILROY Group made investments of to the established policies to ensure that currency DKK 11.0 million, of which DKK 8.3 million went to exposure is minimized to the extent possible. IT-related developments. The major part of the IT invest- ment was used for a new CRM-system in MyPlanet. KILROY travels International’s treasury function controls and hedges the consolidated foreign mDKK exchange exposure. IT investments Established procedures for reporting are in place, 40 as are limits for managing currency positions. Other investments 30 These policies ensure that financial instruments are used to limit risks. Subsidiaries operate primarily in their own local currencies. 20 In cases where the subsidiaries have foreign exchange exposure, they hedge their exposure via the KILROY 10 Group’s corporate treasury function.

2000 2001 2002 2003 2004

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Management’s Statement Today, the Board of Directors and the Board of the applied accounting policies appropriate for the consolidated cash flows for the year ended 31 Management have adopted the Annual Report of Annual Report to give a true and fair view of the December 2004. We recommend that The Annual KILROY travels International A/S for the year 2004. Group’s and the parent Company’s financial position Report be approved at the Annual General Meeting. The Annual Report has been prepared in accordance at 31 December 2004, as well as of the results of with the Danish Financial Statements Act. We consider the Group's and the Company's operations and Copenhagen, 3 May 2005. Board of Management Board of Directors

Claus H. Hejlesen Tapio Kiiskinen Kaj Storbacka Linnea Meder Managing Director Chairman

John Dueholm Lars Liebst Lisbeth Rasmussen Vice Chairman (elected by staff) Auditor´s Report To the Shareholders of KILROY Group and the Parent Company We audited the Annual Report for the financial year assurance that the Annual Report is free of material Opinion 1 January - 31 December 2004 prepared in accordance misstatement. An audit includes examining, on a In our opinion, the Annual Report gives a true and fair with the Danish Financial Statement Act. test basis, evidence supporting the amounts and view of the Group’s and the Parent Company’s financial The Annual Report is the responsibility of the disclosures in the Annual Report. position at 31 December 2004 and of the results of the Company’s Board of Directors and Management. An audit also includes assessing the accounting Group’s and the Parent Company’s operations and Our responsibility is to express an opinion on the policies used and significant estimates made by the consolidated cash flows for the financial year Annual Report based on our audit. Board of Directors and Management, as well as 1 January - 31 December 2004, in accordance with evaluating the overall Annual Report presentation. the Danish Financial Statements Act. Basis of opinion We believe that our audit provides a reasonable We conducted our audit in accordance with Danish basis for our opinion. Auditing Standards. Those standards require that we Our audit did not result in any qualification. plan and perform the audit to obtain reasonable Copenhagen, 3 May 2005. KPMG C. Jespersen KPMG Wideri Oy AB Statsautoriseret Revisionsinteressentskab

Sven Carlsen Per Lund Reino Tikkanen State Authorised Public Accountant State Authorised Public Accountant Authorised Public Accountant

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General intercompany accounts, and intercompany profits Cost of products sold The Annual Report for 2004 for KILROY travels and losses are eliminated. The parent company’s Contains invoiced and accrued cost of travel related International A/S is presented in accordance with the share in a subsidiary is calculated as its share of products, services and financial arrangements. provisions of the Danish Financial Statements Act for the subsidiary’s net assets. accounting class C companies. Income from shares in subsidiaries and affiliated Companies in which the Group owns 20-50% of the companies The Annual Report has been prepared using the same respective company’s equity, but of which the Group Pretax profits or losses in subsidiaries include the accounting policies as previous years. The assets’ does not hold a controlling share, are referred to as proportionate share of pretax profits or losses in the residual values and useful lives have been reviewed. affiliated companies. The value of the Group’s share is subsidiaries’ net of intercompany profits. Consequently the estimated useful lives of goodwill in calculated according to its share of the affiliated com- MyPlanet A/S and the corporate ERP-system has been pany’s net assets. The proportionate share of tax on the profit or losses re-evaluated. The re-evaluation has had a positive Entries relating to affiliated companies connected to for the year in subsidiaries is included in the item “Tax.” impact on the fixed assets in the balance sheet and KILROY travels International A/S and operated in con- depreciations in the profit and loss before tax for 2004 junction with other shareholders are prorated in propor- Tax of approx. DKK 3.8 mill. tion to the size of the share, when compiling consolida- The parent company is taxed jointly with a number of ted accounts. Upon acquisition of a subsidiary, the wholly owned domestic and foreign subsidiaries. In the Adjustments of key and comparison figures have not share of the net assets is calculated according to the profit and loss account, estimated tax takes into been made, as recognition and measurement are Group’s accounting policies. account relief for taxes paid abroad and changes in unchanged. deferred tax. If the purchase price deviates from the value of the Consolidated Accounts net assets, the difference is, to the extent possible, Prepaid corporate tax is entered in the balance sheet The consolidated accounts include the annual accounts allocated to the assets or liabilities that have a higher as a current asset. of the parent company, KILROY travels International or lower value. A/S, and all subsidiaries that the parent company In addition, provisions are made for the expenses Deferred tax is provided under the liability method, and directly or indirectly controls. incurred at the time of purchase. Goodwill in connection covers all temporary differences between accounting to aquisitions is capitalised and amortised over a and tax values of the assets and liabilities. The consolidated accounts are prepared by adding maximum 20-year period. items of a like nature in the accounts of KILROY travels Deferred tax is furthermore provided for re-taxation of International A/S and its subsidiaries. Newly acquired or formed companies are included tax deductible losses realised in non-Danish affiliated in the consolidated accounts from the purchase or companies, if the re-taxation is expected to be realised Subsidiary accounts that are included in the establishment date. by the affiliated companies departure from the Danish consolidated accounts are prepared in accordance joint taxation scheme. with the accounting policies of the parent company. Divested companies are included up to the date of disposal. Minority interests in subsidiaries’ profits and The tax value of tax loss carry-forwards will be set off Profit and loss statements of foreign subsidiaries are equity are stated separately in the consolidation of the against deferred tax liabilities to the extent that the tax converted into Danish kroner (DKK) using the average Group profit and shareholders’ equity. losses and other tax assets are expected to be utilised exchange rates for the year. Balance sheet items are in the future taxable income. Deferred tax is calculated converted at the exchange rate at the end of the year. Profit and Loss Acount according to applicable tax laws and according to the Turnover expected tax rate. Exchange rate adjustments of the equity of foreign Turnover includes the year’s sales of travel products subsidiaries at the beginning of the year, and exchange and services. Revenues from individual travel products Extraordinary income/expenses rate adjustments of the profit and loss accounts from are booked at time of invoicing, regardless of departure Income and expenses emerged from circumstances average rates to year-end rates, are posted against the date. Revenues from group travel products are booked which vary significantly from the operational travel Group shareholders’ equity. In the consolidation of in the accounting period that coincides with the business is adopted in the profit and loss account as the accounts, intercompany income and expenses, departure date of the trip. extraordinary income/expenses.

12 The KILROY Group rev_indhold_02maj.qxd 09-05-2005 15:23 Side 13

Balance Sheet Other provisions flow for the year, and is divided into cash flow from Fixed assets Other provisions include an estimated liability, which operating, investing and financial activities. Fixed assets are carried at historic cost less will presumably lead to an outflow of resources. depreciation. Assets are written down if their value has Cash flow from operating activities covers cash flow depreciated and cannot be seen as appreciating in the Dividend from the year’s operations, adjusted for operating items near future. Dividend is stated in the accounts at the time when it of a noncash nature and changes in working capital. is decided by the company at the Annual General Depreciation is calculated on a straight line basis of Meeting, the company thereby having incurred a Working capital includes current assets less liquid the historic cost according to the following guidelines, liability.The dividend which is proposed for distribution assets and current, non-interest bearing liabilities and based on the estimated economic life of the asset: is therefore stated separately in the Equity. dividends.

z Software 2-7 years Rent and leasing Cash flow from investing activities covers cash flow in z Goodwill 5-20 years The parent company and the Group have entered connection with the purchase and sale of fixed assets, z Land and buildings 33-50 years into rental and leasing agreements for offices and including participating interests and other long-term z Leasehold improvements 5 years equipment for multi-year periods. securities. z IT and other equipment 2-5 years Rental and leasing expenses are stated in the profit Cash flow from financing activities covers payments to Minor assets below DKK 10,800 are posted as and loss account for the applicable period. and from shareholders, together with the raising of and expenses in the profit and loss account. The aggregate rental and leasing liability is stated repayment of interest bearing liabilities. under contingent liabilities. Participating interests in subsidiaries and Liquid assets are cash holdings, money market affiliated companies Currency conversion deposits in banks, and marketable securities stated Participating interests in subsidiaries are valued Accounts in foreign currency are stated at the under current assets. according to the equity method at the proportionate exchange rate at year end. Gains and losses are share of the net assets. included in cost of products sold. Currency contracts to hedge forward income and expenses are booked in Inventories the profit and loss account at market values. Goods for resale are booked at purchase price. Write-downs are made according to obsolescence Currency contracts to hedge incomes and expenses and other forms of value depreciation. already in the annual report are included in the profit and loss at market value of the currency contract. Accounts receivable Changes in the value of the hedging instrument after Accounts receivable are stated net of provisions for tax are stated directly in the Equity until the hedged possible losses. asset is realised. Bonds and securities Cash Flow Statement Publicly traded bonds are stated at the market value at The Cash Flow Statement is presented according to year end. Realised and unrealised gains and losses are the indirect method based on the operating profit. included in the profit and loss account. The Cash Flow Statement shows the Group’s cash

The KILROY Group 13 rev_indhold_02maj.qxd 09-05-2005 15:23 Side 14

mDKK mDKK Turnover EBITDA

40

1500 30

1000 20

500 10

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

Avg. no. of mDKK employees Equity FTE’s

100 600

75 450

50 300

25 150

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

14 The KILROY Group rev_indhold_02maj.qxd 09-05-2005 15:23 Side 15

1 January - 31 December

Group Parent 2004 2003 2004 2003 Note: kDKK kDKK kDKK kDKK 1 Turnover 1,208,938 1,259,629 139,507 252,889 2 Other operating income 2,366 3,293 2,366 3,293 Cost of products sold -960,320 -1,003,009 -125,054 -228,779 Gross profit 250,984 259,913 16,819 27,043

3 Sales and administrative costs -93,280 -90,452 -2,683 -2,913 4 Personnel costs -136,773 -150,437 -20,760 -22,024 5 Other income 502 0 0 0 EBITDA 21,433 19,024 -6,624 2,466

6 Depreciation -19,351 - 22,216 -1,609 -3,178 EBIT 2,082 -3,192-8,233 -712

10 Result from shares in affiliated companies - - 9,578 -677 7 Financial income, net 3,081 -509 -697 -2,721 Result before extraordinary income/expenses 5,163 -3,701 649 -4,110

8 Extraordinary income/expenses -3,887 0 0 0 EBT 1,276 -3,701 649 -4,110

9 Tax -510 -1,250 -510 -1,250 Net profit 766 -4,951 139 -5,360

11 Gain/loss attributable to minority interests -627 -409

Result attributable to KILROY travels International A/S 139 -5,360 Proposed appropriation of net result: Dividends 00 Retained earnings 139 -5,360 139 -5,360

The KILROY Group 15 rev_indhold_02maj.qxd 09-05-2005 15:23 Side 16

31 December

Group Parent ASSETS 2004 2003 2004 2003 Note: kDKK kDKK kDKK kDKK

FIXED ASSETS Software 32,815 34,395 0 0 Goodwill 23,930 27,659 13,179 14,365 6 Intangible fixed assets 56,745 62,054 13,179 14,365 Land and buildings 1,167 1,697 0 0 Leasehold improvements 3,393 5,576 392 574 IT hardware and other equipment 7,243 10,889 204 445 6 Tangible fixed assets 11,803 18,162 596 1,019 10,17 Shares in affiliated companies - - 46,057 38,279 10,17 Shares in associated companies 1,744 627 0 0 Other securities 36 27 0 0 Financial fixed assets 1,780 654 46,057 38,279

TOTAL FIXED ASSETS 70,328 80,870 59,832 53,663

CURRENT ASSETS Inventories 5,855 5,838 335 0 Trade debtors 17,516 14,153 1,159 962 Amounts due from affiliated companies 0 0 30,967 55,773 Corporate tax 518 26,714 0 13,869 Other receivables 11,222 8,157 4,400 1,522 Prepaid expenses and accrued income 13,938 11,252 1,352 - Total receivables 43,194 60,276 37,879 72,126 Bonds and securities 7,890 29,234 7,890 28,884 Cash at bank and in hand 205,173 186,751 97,907 98,008 TOTAL CURRENT ASSETS 262,112 282,099 144,011 199,018

TOTAL ASSETS 332,440 362,969 203,843 252,681

16 The KILROY Group rev_indhold_02maj.qxd 09-05-2005 15:23 Side 17

31 December

Group Parent LIABILITIES 2004 2003 2004 2003 Note: kDKK kDKK kDKK kDKK EQUITY Share capital 27,839 23,450 27,839 23,450 Retained earnings 41,621 35,389 41,621 35,389 Proposed dividend 0 0 0 0 69,460 58,839 69,460 58,839 Minority interests 1,736 896 - - 11 TOTAL EQUITY 71,196 59,735 69,460 58,839 Convertible debt, subordinated 0 10,000 0 10,000

71,196 69,735 69,460 68,839 PROVISIONS 12 Other provisions 3,153 12,400 3,000 12,400 9 Deferred tax 8,934 12,649 10,544 16,093 TOTAL PROVISIONS 12,087 25,049 13,544 28,493 LONG-TERM LIABILITIES Bank loan 10,000 10,000 10,000 10,000 Mortgage 0 1500 0 13 TOTAL LONG-TERM LIABILITIES 10,000 10,150 10,000 10,000

CURRENT LIABILITIES Bank loan 0 20,000 0 20,000 Short-term mortgage 0 150 0 0 Trade creditors 133,861 146,126 57,241 74,785 Amounts owed to affiliated companies 181 154 48,258 44,513 Other liabilities 18,243 18,267 3,313 6,051 Accrued liabilities & prepaid income 8,155 9,170 2,027 0 14 Advance payments 78,717 64,168 0 0 TOTAL CURRENT LIABILITIES 239,157 258,035 110,839 145,349 TOTAL LIABILITIES 332,440 362,969 203,843 252,681 15 Contingent liabilities and secured debt 17 Affiliated/associated companies 16 Credit facilities 18 Related parties

The KILROY Group 17 rev_indhold_02maj.qxd 09-05-2005 15:23 Side 18

1 January - 31 December

Group 2004 2003 kDKK kDKK EBIT 2,082 -3,195 Adjustments for non-cash items Depreciation 19,351 22,216 Exchange rate and other adjustments 381 -4,881 Working capital Change in inventories -17 1,135 Change in receivables 17,080 -11,611 Change in trade creditors -12,265 -64,889 Change in other liabilities 10,404 338 Cash flow from operating activities before financial items 37,016 -60,884 Net interest income, etc. 3,081 -509 Extraordinary items -3,887 0 Cash flow from operating activities 36,210 -61,393 Net purchase of plant, operating equipment, etc. -7,706 -18,235 Purchase/sale of long-term securities -1,126 -627 Cash flow from investment activities - 8,832 - 18,862 Own shares 0 -131 Establishment of long term loans 0 20,000 Repayment of debt -30,300 -150 Dividends paid/received 0 -19,982 Cash flow from financing activities -30,300 -263 Net change in liquid assets -2,922 -80,518 Cash at bank, in hand, and bonds and securities at Jan. 1 215,985 296,503 Cash at bank, in hand, and bonds and securities at Dec. 31 213,063 215,985 Financial resources Cash at bank, in hand, and bonds and securities 213,063 215,985 Unused credit facilities 31,100 22,883 Financial resources 244,163 238,868

Not all figures above can be found directly in the Annual Report.

18 The KILROY Group rev_indhold_02maj.qxd 09-05-2005 15:23 Side 19

Group Parent 1.TURNOVER 2004 2003 2004 2003 kDKK kDKK kDKK kDKK

Sales through affiliated companies 1,188,945 1,214,839 139,023 244,210 Sales through agents 19,993 44,790 484 8,679 Total turnover 1,208,938 1,259,629 139,507 252,889

The turnover originates as follows: Nordic region DKK 1,137 million (2003: DKK 1,170 million), other regions DKK 72 million (2003: DKK 90 million). 2. OTHER OPERATING INCOME In order to give a true and fair view of primary operations compared with the travel industry in general, this section also includes a fixed, defined portion of total financial income (2004: DKK 2,366 thousand, 2003: DKK 3,293 thousand). The reason is that the parent company, KILROY travels International A/S, has a specially developed business concept that distinguishes it from the rest of the travel industry in that the company’s purchasing agreements, primarily for airline products, carry a direct interest advantage while also requiring additional costs for administration and sales.

Group Parent 3. FEES TO AUDITORS APPOINTED BY THE GENERAL MEETING 2004 2003 2004 2003 kDKK kDKK kDKK kDKK

Statutory audit 1,588 1,771 436 594 Other fees 855 769 527 419 Total auditor fees 2,443 2,540 963 1,013 Group Parent 4. PERSONNEL COSTS 2004 2003 2004 2003 kDKK kDKK kDKK kDKK

Salaries and wages 117,166 128,071 19,997 21,210 Social security contributions 9,895 12,270 212 228 Pensions 3,373 3,540 0 0 Other personnel costs 6,339 6,556 551 586 Total personnel costs 136,773 150,437 20,760 22,024 Salaries and social security contributions to management, plus fees to the Board of Directors, totaled DKK 2,892 thousand (2003: DKK 2,434 thousand) of the total sum. In 2004 the Group employed an average of 438 people, full time equivalent (2003: 489). In 2004 the parent company employed an average of 48 people, full time equivalent (2003: 53). Group Parent 5. OTHER INCOME 2004 2003 2004 2003 kDKK kDKK kDKK kDKK Sales of shares MyPlanet 522 0 0 0 Other -20 0 0 0 Total other income 502 0 0 0

The KILROY Group 19 rev_indhold_02maj.qxd 09-05-2005 15:23 Side 20

6. FIXED ASSETS (GROUP) Software Goodwill Land & Leasehold IT and other Total buildings improvements equipment Cost at Jan. 1 65,317 48,161 2,777 20,608 87,862 224,725 Reclassification 139 0 0 0 -139 0 Exchange rate adjustments 17 73 0 69 259 418 Additions in year 8,254 0 158 387 2,209 11,008 Disposals in year -34 -1,814 -885 -1,031 -4,241 -8,005 Cost at Dec. 31 73,693 46,420 2,050 20,033 85,950 228,146 Depreciation at Jan. 1 -30,922 -20,502 -1,080 -15,032 -76,973 -144,509 Reclassification -107 0 0 0 -67 -174 Exchange rate adjustments -15 -33 0 -71 -287 -406 Disposals in year 33 1,162 274 972 4,217 6,658 Depreciation in year -9,867 -3,117 -77 -2,509 -5,597 -21,167 1) Depreciation at Dec. 31 -40,878 -22,490 -883 -16,640 -78,707 -159,598 Book value at Dec. 31, 2004 32,815 23,930 1,167 3,393 7,243 68,548 Book value at Dec. 31, 2003 34,395 27,659 1,697 5,576 10,889 80,216

The official property tax assessment for the Group’s Danish properties, which are carried at DKK 1,200 thousand, was DKK 2,010 thousand at Jan. 1, 2003. 1) Depreciations on fixed assets: Included in 2004 profit and loss ‘COST OF PRODUCTS’ 1,816 Included in 2004 profit and loss ‘DEPRECIATIONS’ 19,351 Total Depreciations IT and other equipment 21,167

6. FIXED ASSETS (PARENT) Software Goodwill Land & Leasehold IT and other Total buildings improvements equipment Cost at Jan. 1 0 27,294 0 1,558 3,716 32,568 Additions in year - 0 0 0 0 0 Disposals in year - 0 0 0 -250 -250 Cost at Dec. 31 - 27,294 0 1,558 3,466 32,318 Depreciation at Jan. 1 0 -12,929 0 -984 -3,271 -17,184 Disposals in year 0 0 0 0 250 250 Depreciation in year 0 -1,186 0 -182 -241 -1,609 Depreciation at Dec. 31 0 -14,115 0 -1,166 -3,262 -18,543 Book value at Dec. 31, 2004 0 13,179 0 392 204 13,775 Book value at Dec. 31, 2003 0 14,365 0 574 445 15,384

20 The KILROY Group rev_indhold_02maj.qxd 09-05-2005 15:23 Side 21

Group Parent 7. FINANCIAL INCOME, NET 2004 2003 2004 2003 kDKK kDKK kDKK kDKK Financial income 4,712 4,352 5,424 4,048 Financial expenses -1,631 -4,861 -6,121 -6,769 Financial income, net 3,081 -509 -697 -2,721

Of the Group’s financial expenses, DKK 293 thousand is interest to HYY Group Ltd. (2003: DKK 0 thousand). Of the parent company’s financial income, DKK 933 thousand is interest for affiliated companies (2003: DKK 1,458 thousand). Of the parent company’s financial expenses, DKK 1,523 thousand is interest for affiliated companies (2003: DKK 1,860 thousand).

8. EXTRAORDINARY INCOME / EXPENSES In 2004 KILROY travels Netherlands was involuntarily part of a large, organised crime fraud case. Consequently a loss of DKK 3,887 thousand has been realised.

Group Parent 9.TAX 2004 2003 2004 2003 kDKK kDKK kDKK kDKK Current tax charge to parent company 0 0 0 0 Adjustments to previous year’s tax charge -41 -886 -41 -886 Change in deferred tax -5,549 769 -5,549 769 -5,590 -117 -5,590 -117

Portion of tax charge to subsidiaries 4,266 -709 6,100 1,367 Change in deferred tax for subsidiaries 1,834 2,076

Total Tax 510 1,250 510 1,250 Deferred tax primo 12,649 11,342 16,093 15,324 Change in deferred tax, net -3,715 1,307 -5,549 769 Deferred tax ultimo 8,934 12,649 10,544 16,093

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 and some of the foreign subsidiaries. The parent company and the consolidated subsidiaries share joint and several responsibility for tax liabilities from their consolidated income. In 2004, DKK 1,332 thousand (2003: DKK 3,977 thousand) is paid as corporate tax in the Group. In 2004, DKK 0 thousand (2003: DKK 2,524 thousand) is paid as corporate tax in the Parent company and the consolidated subsidiaries.

The KILROY Group 21 rev_indhold_02maj.qxd 09-05-2005 15:23 Side 22

Group (associated) Parent (affiliated) 2004 2003 2004 2003 10. SHARES IN ASSOCIATED/AFFILIATED COMPANIES kDKK kDKK kDKK kDKK Cost at Jan. 1 627 0 74,334 60,667 Purchase of shares and capital contributions 0 627 - 13,667 Sale of shares 0 0 0 0 Cost at Dec. 31 627 627 74,334 74,334 Writedowns at Jan. 1 0 0 -36,055 -33,062 Exchange rate adjustments -82 0 95 -577 Profit before tax 1,713 0 9,578 -677 Tax of the year -514 0 -6,100 -1,367 Dividends from subidiaries 0 0 -2,190 -372 Writedowns at Dec. 31 1,117 0 -34,672 -36,055 Adjustments (negative equity, affiliated companies) 0 0 6,395 0 Book value at Dec. 31 1,744 627 46,057 38,279 A list of affiliated companies is shown on page 24. Group Parent 11. EQUITY 2004 2003 2004 2003 KILROY Group’s share of equity: kDKK kDKK kDKK kDKK Share capital at Jan. 1 23,450 23,450 23,450 23,450 Capital increase 4,389 0 4,389 0 Share capital at Dec. 31 27,839 23,450 27,839 23,450 Retained earnings at Jan. 1 35,389 45,744 35,389 45,744 Share premium 5,903 0 5,903 0 Own shares 0 -131 0 -131 Hedging future -1 4,309 -1 -4,309 Exchange rate and other adjustments 191 555 191 555 Net result for the year 139 -5,360 139 5,360 Retained earnings at Dec. 31 41,621 35,389 41,621 35,389 Dividend at Jan. 1 0 20,000 0 20,000 Paid during year 0 -20,000 0 -20,000 Dividend at Dec. 31 0 0 0 0 Company equity at Dec. 31 69,460 58,839 69,460 58,839 Minority shareholders’ share of equity at Jan. 1 896 487 Additions/Disposals 384 0 Dividend paid -150 0 Exchange rate adjustment -22 0 Share of net result 627 409 Minority shareholders’ share of equity at Dec. 31 1,736 896 Total Group shareholders’ equity 71,196 59,735

22 The KILROY Group The share capital is divided in shares of DKK 100 each or multiples thereof, totaling DKK 27,839 thousands. rev_indhold_02maj.qxd 09-05-2005 15:23 Side 23

12. OTHER PROVISIONS Mainly accrued cost that is expected to mature in future years (later than 2005). 13. LONG-TERM LIABILITIES Group long-term liabilities have a total value of DKK 10,000 thousand (2003: DKK 10,150 thousand) which is due in the period 2006-2010. Parent long-term liabilities have a total value of DKK 10,000 thousand (2003: DKK 10,000 thousand) which is due in the period 2006-2010. 14. ADVANCE PAYMENTS Primarily include prepayments from travel ordered for 2005. 15. CONTINGENT LIABILITIES AND SECURED DEBT The Group has entered into rent and lease obligations with remaining terms of up to 10 years. Rent and lease payments in the period of the agreements total DKK 38,564 thousand (2003: DKK 47,355 thousand). In total DKK 16,567 thousand is due in 2005. The KILROY Group companies are from time to time involved in disputes, as it is usual in our business and in the travel business in general. Recently the VAT authority in Spain replied negatively to the case towards KILROY travels Spain, and an appeal has been lodged. The claim is approximately DKK 3 mill. plus interest, covering the period 1995-2001. Based on analysis and opinions from external legal advisors of the factual and juridical aspects, it is the management’s belief that the Group does not risk any significant liabilities in respect to this particular case. The parent company has entered into rent and lease obligations with remaining terms of up to 3 1/2 years. Rent and lease payments in the periods of the agreement total DKK 4,006 thousand (2003: 5,911 thousand). In total DKK 1,101 thousand is due in 2005.

Group Parent 16. CREDIT FACILITIES 2004 2003 2004 2003 kDKK kDKK kDKK kDKK Bank guarantees "on balance" 48,714 60,635 42,443 53,235 Bank guarantees "off balance" 22,491 16,100 - - Bank guarantees on behalf of subsidiaries - - 27,954 23,500 Parent guarantees on behalf of subsidiaries 3,157 10,407 3,157 10,407 Total credit facilities 74,361 87,142 73,554 87,142

At year-end, the KILROY Group had undrawn committed credit facilities amounting to DKK 31 million (DKK 23 million in 2003).

The KILROY Group 23 rev_indhold_02maj.qxd 09-05-2005 15:23 Side 24

17. SPECIFICATION OF AFFILIATED/ASSOCIATED COMPANIES Nominal Capital Proposed Currency Share Capital share dividend 2004 COMPANY: thousands thousands Local currency

MyPlanet Holding A/S (Copenhagen) DKK 1,000 100% 4,800 MyPlanet International A/S (Holstebro) DKK 500 90% 4,000 MyPlanet Australia Pty (Sydney) AUD 125 100% - MyPlanet Norway AS (Oslo) NOK 250 100% - MyPlanet Sweden AB (Gothenburg) SEK 100 100% - Bentours International Pty Ltd. (Sydney) AUD 27 100% - KILROY travels Denmark A/S (Copenhagen) DKK 2,950 100% 2,000 KILROY travels Norway AS (Oslo) NOK 4,000 100% - KILROY travels Trondheim AS (Trondheim) NOK 2,000 100% - KILROY travels Sweden AB (Stockholm) SEK 2,500 100% 860 OY KILROY travels Finland AB (Helsinki) EUR 336 100% 110 KILROY travels Netherlands B.V. (Amsterdam) EUR 1,817 100% - KILROY travels Spain S.A. (Madrid) EUR 120 100% - KILROY Invest A/S (Copenhagen) DKK 1,000 100% - KILROY group travel A/S (Copenhagen) DKK 1,100 100% -

18. RELATED PARTIES Related parties are considered to be the HYY Group Ltd, P.O. Box 1099, Mannerheimintie 5C, FIN-00101 Helsinki which is in control and owns 63.4% of the shares in KILROY travels International A/S. Other related parties are considered to be Axcel Industrilnvestor a.s. Sankt Annæ Plads 10, DK-1250 Copenhagen K, Denmark owing 29.5% of the shares, the management of KILROY travels International A/S and affiliated companies. The KILROY Group has not had any material transactions with the related parties, except the subordinated loans, which are not eliminated in the Group accounts.

24 The KILROY Group rev_indhold_02maj.qxd 09-05-2005 15:23 Side 25

As of 3 May 2005

The Board of Directors and Management executive positions outside KILROY travels International A/S.

Board of Directors

Tapio Kiiskinen Lars Liebst Chairman CEO, Tivoli A/S Member of the Board of Directors of Kapiteeli Plc Member of the Board of Directors of A/S Th.Wessel & Vett, Magasin du Nord and Member of the Board of Directors of Saariselkä Osuuskunta Entertainment A/S, and of Illum A/S

Member of the Finnish Association of Professional Board Members Linnea Meder Chief Executive Officer, HYY Group, Helsinki. John Dueholm Vice Chairman Financial Director, The Student Union of the University of Helsinki (HYY) Executive Vice President, SAS Group Lisbeth Rasmussen* Member of the Board of Directors of Lindorff A/S Supervisor, KILROY Service KILROY travels International A/S Dr. Kaj Storbacka Founder and Chairman of the Board of Directors of Vectia Ltd., Helsinki. * Elected by Staff

Chairman of the Board of Directors of Learning Systems Oy, Helsinki. Member of the Board of CERS Centre for Relationship, Marketing and Service Board of Management Management at the Swedish School of Economics and Business Administration, Claus H. Hejlesen Helsinki. Managing Director Member of the Board of Directors of Inspecta Ltd., Helsinki.

Member of the Board and the Executive Committee of SAMA (Strategic Account Management Association), Chicago.

The KILROY Group 25 rev_indhold_02maj.qxd 09-05-2005 15:23 Side 26

Management

KILROY travels International A/S Affiliated companies Group Management Corporate Functions Managing Directors Claus H. Hejlesen Henrik Kaltoft Rune Feltman Annelise Dam Larsen Managing Director Manager, Corporate Finance Managing Director Managing Director KILROY travels International A/S KILROY travels International A/S KILROY travels Denmark A/S MyPlanet International A/S, MyPlanet KILROY travels Norway A/S Sweden AB, MyPlanet Norway A/S Anne-Marie Hertz Michael Vestergaard Nobs and MyPlanet Australia Pty. Ltd. Director Corporate Financial and IT Controller & Cash Manager Kristiina Holtari KILROY travels International A/S KILROY travels International A/S Managing Director Anne-Marie Hertz OY KILROY travels Finland AB Managing Director Annelise Dam Larsen Bo Lindegaard KILROY travels Spain S.A. and Business Unit Director Manager, Corporate IT Henrik Kaltoft MyPlanet Holding A/S MyPlanet KILROY travels International A/S Managing Director KILROY travels Netherlands B.V. Claus H. Hejlesen Allan Qvist Managing Director Business Unit Director Monica Murphy KILROY Invest A/S KILROY Group Travel Managing Director KILROY travels Sweden AB Claus H. Hejlesen Business Unit Director Allan Qvist KILROY Individual Travel Managing Director KILROY group travel A/S

Member of Main Bank Auditors Attorney International Student Travel Nordea Bank Danmark A/S KPMG C. Jespersen Kromann Reumert Confederation (ISTC) Strandgade 3 Statsautoriseret Revisionsinteressentskab Sundkrogsgade 5 Federation of International Youth Travel DK-0900 Copenhagen C Borups Alle 177 DK-2100 Copenhagen Ø Organisations (FIYTO) Denmark DK-2000 Denmark Denmark KPMG Wideri Oy Ab Mannerheimintie 20 B FIN-00100 HelsinkiFinland

26 The KILROY Group rev_indhold_02maj.qxd 09-05-2005 15:23 Side 27

As of 3 May 2005

KILROY travels International A/S OY KILROY travels Finland AB KILROY travels Netherlands B.V. KILROY travels Norway A/S Knabrostræde 8 Forum Kauppakeskus Stille Rijn 8-9 NTNU Gløshaugen 1 DK-1210 Copenhagen K Vapaudenkatu 49-51 NL 2312 DE Leiden Kolbjørn Heies vei 4 Denmark FIN-40100 Jyväskylä Netherlands N-7491 Trondheim Telephone:+ 45 33 48 07 00 Finland Norway Telefax: + 45 33 48 07 77 KILROY travels Norway A/S Mail: [email protected] OY KILROY travels Finland AB Nedre Slottsgate 23 KILROY travels Sweden AB Internet: www.kilroytravels.com Tuomiokirkonkatu 34 N-0157 Oslo Kungsgatan 4 FIN-33100 Tampere Norway Box 7144 KILROY travels Denmark A/S Finland Telephone: + 47 23 10 23 00 S-103 87 Stockholm Skindergade 28 Mail: [email protected] Sweden DK-1159 Copenhagen K OY KILROY travels Finland AB Telephone:+ 46 771 545 769 Denmark Eerikinkatu 2 KILROY travels Norway A/S E-mail: [email protected] Telephone: + 45 70 15 40 15 FIN-20100 Turku Universitetssentret Mail: [email protected] Finland Box 54, Blindern KILROY travels Sweden AB N-0313 Oslo Universitetsvägen 9 KILROY travels Denmark A/S KILROY travels Netherlands B.V. Norway (Allhuset Frescati) Falkoner Allé 14 Spuistraat 281 Box 50004 DK-2000 Frederiksberg NL 1012 VP Amsterdam KILROY travels Norway A/S S-104 05 Stockholm Denmark Netherlands Vaskerelven 16 Sweden Telephone:+ 31 20 524 5100 N-5014 Bergen KILROY travels Denmark A/S Mail: [email protected] Norway KILROY travels Sweden AB Vestergade 100 Vasagatan 7 DK-5000 Odense C KILROY travels Netherlands B.V. KILROY travels Norway A/S S-411 24 Gothenburg Denmark Singel 413-415 Vestre Strandgate 13 Sweden NL 1012 WP Amsterdam N- 4610 Kristiansand KILROY travels Denmark A/S Netherlands Norway KILROY travels Sweden AB Fredensgade 40 Klostergatan 31 DK-8100 Aarhus C KILROY travels Netherlands B.V. KILROY travels Norway A/S S-582 23 Linköping Denmark Vinkenburgstraat 15 Breigata 11 Sweden NL - 3512 AA Utrecht N-4006 Stavanger KILROY travels Denmark A/S Netherlands Norway KILROY travels Sweden AB Østeraagade 23 Kungsgatan 2c DK-9000 Aalborg KILROY travels Netherlands B.V. KILROY travels Norway A/S S-223 50 Lund Denmark Korte Hoogstraat 11 Strandgata 36 Sweden NL-3011 GJ Rotterdam N-9008 Tromsø OY KILROY travels Finland AB Netherlands Norway KILROY travels Sweden AB Kaivokatu 10 D Engelbrektsgatan 18 FIN-00100 Helsinki KILROY travels Netherlands B.V. KILROY travels Norway A/S S-211 33 Malmö Finland Oude kijk in´t Jatstraat 21 Jomfrugata 3 Sweden Telephone:+ 358 203 545769 NL-9712 EA Groningen N-7011 Trondheim Mail: [email protected] Netherlands Norway

The KILROY Group 27 rev_indhold_02maj.qxd 09-05-2005 15:23 Side 28

As of 3 May 2005

KILROY travels Sweden AB TEAM BENNS MyPlanet Holding A/S MyPlanet Sweden AB Kungsgatan 71 Nørregade 51 Knabrostræde 8 Norrbackagatan 47 B S-901 07 Umeå DK-7500 Holstebro DK-1210 Copenhagen K S-104 35 Stockholm Sweden Denmark Denmark Sweden Telephone: +45 97 42 50 00 Telephone: + 45 33 48 07 00 KILROY travels Sweden AB Internet: www.team-benns.com Telefax: + 45 33 48 07 77 MyPlanet Norway A/S Bredgränd 3 Wergelandsveien 7 S-753 20 Uppsala KILROY group travel MyPlanet International A/S P.O. Box 7144, Majorstua Sweden Kaivokatu 10 D Nørregade 51 N-0307 Oslo FIN-00100 Helsinki DK-7500 Holstebro Norway KILROY travels Sweden AB Finland Denmark Rudbecksgatan 16 Telephone: + 45 70 12 50 11 MyPlanet Australia Pty. Ltd. S-702 23 Örebro KILROY group travel Telefax: + 45 36 98 91 20 (Bentours Int. Pty. Ltd.) Sweden Nedre Slottsgade 23 Mail: [email protected] Suite 2, Level 7 N-0157 Oslo Internet: www.myplanet.com 189 Kent Street KILROY Education Norway Sydney Kungsgatan 6 MyPlanet Denmark A/S NSW 2000 Box 7144 KILROY group travel Nørregade 51 Australia S-103 87 Stockholm Box 7144 DK-7500 Holstebro Sweden Kungsgatan 4 Denmark S-103 87 Stockholm KILROY group travel A/S Sweden MyPlanet Denmark A/S Nygade 3 Falkonér Alle 1 DK-1164 Copenhagen K KILROY Invest A/S DK-2000 Frederiksberg C Denmark Knabrostræde 8 Denmark Telephone: + 45 70 22 05 35 DK-1210 Copenhagen K Mail: [email protected] Denmark MyPlanet Sweden AB Internet: www.kilroygroups.com Telephone: + 45 33 48 07 00 Kastellgatan 17 Telefax: + 45 33 48 07 77 Box 7124 KILROY group travel A/S S-402 33 Gothenburg Nørregade 50 Sweden DK-7500 Holstebro Denmark

28 The KILROY Group revomslag_13apr.qxd 09-05-2005 15:29 Side 3

have made the happy discovery that as life and art have become I clearer for me, more and more sunshine has streamed into my breast from outside; what blessings came my way after the first, sombre days. Peace and certainty have found a place in my soul; yet such peace can well be combined with a varying life of travel; there was one time I felt so oppressed and tormented by events at home that to be abroad did at least mean a respite from my suffering - and thus foreign countries seemed to offer me peace. I came to be fond of being abroad, and since it is my nature to become attached to people quite easily, provided they show confidence and friendliness in return, I took a liking to travelling abroad, and did so often. "To travel is to live!" A tribute to a great adventerous Dane, , in the year of his 200th anniversary revomslag_13apr.qxd 09-05-2005 15:29 Side 4

KILROY travels International A/S kilroytravels.com Knabrostræde 8 kilroygroups.com 1210 Copenhagen V myplanet.com Denmark CVR-nr. 10 91 52 95