Panalpina Annual Report 2009

Panalpina
Annual Report 2009
A Passion for Solutions

2009 at a glance
Gross profit for the Group declined by 21%.
Strict cost management.
Net working capital intensity at all-time low of 1.8%.
Free cash flow improved from CHF 170 million to CHF 226 million.
Volumes, gross profit impacted by weak market demand and rate volatility.
Net forwarding revenue per segment
Air Freight
Ocean Freight
Supply Chain Management
Returns
in percent
40%
15%
45%
2009 2008
Return on equity (ROE) 1.2 12.1
Return on capital employed (ROCE) 6.14 23.03
Net forwarding revenue per region
Europe/Africa/Middle East/CIS
North America
Central and South America
20%
12%
53%
Asia Pacific 15%
Share price development in comparison to SPI
Panalpina World Transport
SPI Swiss Performance Index
50
1 Jan 09 1 Mar 1 May 1 Jul 1 Sep 1 Nov 1 Jan 10
170
150
130
110
90
70

Glossary
Tonnage
A ship’s freight capacity (in metric tons, or “tonnes”)
TEU (twenty-foot equivalent unit)
Unit of measurement based on a 20-foot ISO container
(6.10 meters long)
Full Container Load (FCL)
This refers to containers that are fully loaded by the consignor and
unloaded by the recipient at the destination.
Less than Container Load (LCL)
This refers to part-loads or small loads that are grouped together
and transported in containers throughout the transport chain.
The containers are unloaded when they reach the various recipients
at different destinations. The term LCL is used mainly for containers
shipped as ocean freight.
Ocean freight and air freight: a comparison of freight capacity
The capacity of a 12,000-TEU container ship is equivalent to that of
1,000 Boeing 747 cargo planes.
The English version takes precedence over the German version.

Five-year development
in million CHF
Net forwarding revenue
9,000
7,500
6,000
4,500
3,000
1,500
0
EBIT
320
280
240
200
160
120
80
40
0
210
175
140
105
70
35
0
6,949
7,735
8,641
8,878
5,958
2005 2006 2007 2008 2009
166
Consolidated profit
261
299
193
30
2005 2006 2007 2008 2009
120
184
211
114
10
2005 2006 2007 2008 2009
Gross profit
1,900
1,750
1,600
1,450
1,300
1,150
1,000
1,000
875
750
625
500
375
250
125
0
1,408
1,591
1,803
1,742
1,377
2005 2006 2007 2008 2009
Shareholders’ equity
858
978
1,026
871
864
2005 2006 2007 2008 2009

Contents
Introduction 4
Panalpina in brief 4
Interview with the Chairman and the CEO 6
Group Management Structure 12
Reports of the Board of Directors and
the Executive Board 14
Report of the Board of Directors 14
Report of the Executive Board 16
Reporting Regions 24
Europe /Africa / Middle East / CIS 26
North America 28
Central and South America 29
Asia Pacific 30
Core Activities 32
Air Freight 34
Ocean Freight 35
Supply Chain Management 36
Customer Groups 38
Telecom 40
Hi-tech 42
Automotive 44
Healthcare and Chemicals 46
Retail and Fashion 48
Oil and Gas 50
Industrial Projects 52
Sustainable Growth 54
Quality, Security and HSE 56
Employees 60
Corporate Culture 62
Information Technology 64
Social Commitment 65
Corporate Governance 66
Global Reporting Initiative 77
Consolidated and Annual
Financial Statements 2009 78
Consolidated Financial Statement 80
Annual Financial Statement 149
Appendix 158
Information for Investors 158
Main Offices Worldwide 160
Pictures 162
Imprint 163
Panalpina Annual Report 2009
3

4
Introduction
Panalpina in brief
A Passion for Solutions
The Panalpina Group is one of the world’s leading suppliers of forwarding and
logistics services, specializing in end-to-end supply chain management solutions
and intercontinental air freight and ocean freight shipments.
Panalpina is considered the market leader in the provision
of freight forwarding services for the oil and gas industry
globally and also maintains leading expertise and capabilities
in providing supply chain management (SCM) solutions
to the Telecom, Hi-tech, Automotive, Retail and Fashion as
well as Healthcare and Chemical sectors. With one of the
largest global networks in air and ocean freight forwarding,
best-in-class technology systems, well-tried relationships
with transportation providers and complementary logistics
services, the Group assists a diverse base of over 100,000
global and SME (small and medium enterprise) customers
with the management of their global supply chains.
Panalpina is primarily organized by regions, with secondary
segmentation based on its core business activities.
In 2009, the Group generated 53% of its gross profit in
Europe /Africa / Middle East / CIS, 19% in North America,
18% in Asia Pacific and 10% in Central and South America.
The Group has a particularly strong presence in the major
Asia – Europe – Asia trade lane which accounted for about
a third of its total transported volumes in 2009.
Panalpina invoices services based on customer requirements.
Air freight services sold and invoiced in Europe may
cover transports from Asia to Europe. Thus invoiced revenues
are fully reflected within Europe. However, a portion
of the gross profit is shared with Asia in line with revenuesharing
agreements and responsibilities. Therefore, when
comparing Panalpina’s regional reporting, no final conclusions
on the absolute level of revenues or gross profit
generated by the various regions and trade lanes can be
drawn. However, comparing a specific geographic region’s
revenues and gross profit over a period of time can reveal
trends within that region and help to explain the business
development.
In terms of core business activities, the Group derived 41%
of its gross profit in 2009 from air freight forwarding,
33% from ocean freight forwarding and 26% from SCM
services.
Panalpina Annual Report 2009
Strategic business priorities
Based on its primary strategic focus as an asset-light
global supply chain management company, the Group aims
to maintain a balanced customer mix of SMEs and Global
Accounts. Panalpina generates approximately 30% and
70% of total net forwarding revenue with its Global Accounts
and SME customers, respectively. On one hand, Global
Accounts provide significant volume on certain trade lanes,
which enables the Group to optimize the procurement of
transportation capacity and foster the expansion of its
operations. On the other hand, maintaining a highly diversified
portfolio of SME customers mitigates the Group’s
exposure to any individual global account, with the single
largest customer comprising approximately 3% of turnover.
During 2009, the Group announced its intention to increase
the focus of its sales activities on medium-sized clients
with the goal to grow this customer segment faster than
Global Accounts in order to optimize the customer mix.
In addition to its air and ocean freight service offering, the
Group provides its customers with logistics and SCM solutions.
Such services will lead to closer cooperation with key
customers in the longer term and provide opportunities
for profitable growth. The Group therefore intends to further
extend its service offering in its core activity SCM and to
grow this business segment faster relative to its freight forwarding
activities. To lay the foundations for this growth,
various important milestones have been achieved and
methodologies and tools were developed and invested in
during 2009. Moreover, eight globally offered SCM core
products have been defined and launched during the year
to further enhance the service offering in this segment.
The Group intends to maintain its asset-light business
model for all logistics services (including SCM) and will
therefore focus on the service aspects of such businesses.
As a lead logistics provider, the Group will concentrate
on the management and coordination of such services
and keep investments and operation of assets (such as
warehouses and related equipment) to a minimum by subcontracting
to best-in-class partners. This allows the

development of custom-made solutions for each customer
as the Group is not constricted by the utilization of own
assets.
The Group strives to continue to lower its cost base by
further optimizing its core processes, by developing shared
service centers for its operations, and by consequently
utilizing the economies of scale created by increasing volumes.
Management believes that its ongoing drive to
improve efficiency and reduce costs will allow Panalpina to
further increase its profit margins.
The Group aims to achieve strong organic growth, supported
by selected bolt-on acquisitions. Its acquisition
strategy is based on three pillars: 1. Scale expansion to
further strengthen its position in the fast-growing trade
lanes out of and within Asia and to improve the Group’s
market position in areas in which the Group expects superior
growth opportunities. 2. Network expansion to acquire
well-known partner companies in strategic markets to gain
direct control of the customer base and to enable customers
to fully benefit from the services the Group provides
globally. 3. Skill expansion to add and strengthen its capability
in selected industries, in specific geographic areas
and in the logistics and SCM business. The current strategy
does not involve any diversification into areas in which the
Group does not have a specific competence.
Panalpina’s service offering of managing global trade
flows is well diversified across a wide variety of trade lanes
and industries. Among these, the Asia – Europe – Asia
trade lane represents the Group’s most important market,
and it intends to capitalize on its strong presence in Asia,
where demand for transportation is expected to develop
faster than in other regions of the world, especially for traffic
between Asian countries.
The Group will further strengthen the industry-specific
competence centers it has established in order to provide
tailor-made services to the Hi-tech, Automotive, Retail and
Fashion, Healthcare and Telecom sectors and for Industrial
Projects and the Oil and Gas industries. The Group believes
these industry verticals offer promising long-term potential
and growth and require industry-specific transportation
services.
Core activities
Through its own offices and partner companies, Panalpina
provides air freight forwarding services in some 160 countries.
The Group operates a system of hubs and gateways
Introduction
which allows the bundling of cargo flows. In the past years,
the Group has usually purchased approximately 70% of
the total air transport capacity on a short-term basis and
without financial risk. Approximately 25% of capacity has
been contracted medium-term (up to six months in
advance) with limited financial risk arising from potential
dead freight payments. The remaining 5% of the total air
transport capacity has been contracted long-term (more
than six months). As of the beginning of 2009, due to
the existing economic uncertainty, the Group significantly
reduced the percentage of advance purchasing of air
transport capacity: over 80% of the total capacity is now
procured on a short-term basis, and only 10% to 15% is
contracted medium-term. The long-term contract share
remains at about 5% and is directly related to a specific
Panalpina own-controlled flight where management believes
that the associated financial risk is more than offset by the
added value of this product. The proactive management of
the procurement mix – fine-tuned per trade lane – ensures
a balance between capacity access guarantees and financial
risks, always in line with the present and anticipated
supply/demand market.
The Group has tailored its ocean freight services to the
transportation needs of its customers. For customers who
transport full container loads, it offers FCL (Full Container
Load) services. To accommodate customers who ship
smaller consignments, the Group offers a competitively
priced consolidation product with its LCL (Less than Container
Load) service. Customers can combine these products
with standardized service options, such as door-todoor,
door-to-port, port-to-door and port-to-port deliveries,
which enables the services the Group offers in the ocean
freight area to be tailored to each customer’s needs.
The Group offers a whole range of services and logistics
solutions designed to improve the management of its
customers’ supply chains. For customers who run supply
chain management in-house, the Group offers consulting
services entailing both the planning of logistics processes
and the selection and management of logistics service
suppliers. For clients who outsource supply chain management,
the Group also provides warehousing and distribution
services, including order fulfillment, invoicing and
reporting. In this way, the Group combines its traditional
forwarding services with logistics services tailored to
customers’ needs, offering customers complete supply
chain solutions.
Panalpina Annual Report 2009
5

6
Introduction
Interview with the Chairman and the CEO
A period of transition
The Chairman of the Board of Directors and the Chief Executive Officer of the
Panalpina Group discuss the results and challenges of 2009 and the long-term outlook
for the forwarding and logistics company.
How has the market environment changed for Panalpina
in the past twelve months?
Rudolf W. Hug: Freight flows have declined drastically
overall, so forwarding and logistics companies are
now competing for a slice of a significantly smaller pie.
The global economy is undergoing a period of transition
generally. We are moving towards a world economy with
multiple centers. Rules that applied until recently are
no longer appropriate to the current situation. In the past,
Panalpina’s freight volumes grew alongside those of its
customers. Just as we benefited from this trend, we now
have to accept the present situation and exploit the
medium- and long-term opportunities that arise – with the
primary aim of safeguarding and expanding service
and quality standards for our customers. We have been
pleased to note a growing willingness on the part of
customers to work with us on reviewing the entire supply
chain in order to identify potential cost savings and
efficiency improvements.
The pressure on market
participants is evidently spreading.
Monika Ribar: Global forwarding and logistics providers
are of course fighting over the forwarding volumes that
remain – and price is more crucial than ever. However,
factors such as service quality and effective compliance
will continue to be important sales arguments. This is why
we strive towards market leadership in freight forwarding
and supply chain solutions backed by an integrated IT platform
and leadership in terms of compliance.
Panalpina Annual Report 2009
Steep drops in volumes – such as have been experienced
in our Automotive and Hi-tech customer segments – have
not been offset by new customer business for some time
now. Our partners, the air and ocean freight providers and
our suppliers are all subject to the same market conditions.
The economic crisis has caused high fluctuations
in freight rates. Insufficient freight volumes led to expensive,
but unused, freight capacity being withdrawn from the
market. This widespread artificial shortage of forwarding
capacity then forced rates up again after a sharp drop.
In the circumstances, planning for the medium or long term
and stabilizing margins – already very tight in our business –
presents a considerable challenge. The pressure on market
participants – customers, partners, suppliers and subcontractors
– is evidently spreading. Nevertheless, the
relationships Panalpina has built up with its partners and
suppliers over the years are still sound and the transport
and logistics market still has excellent long-term growth
potential.
What measures were introduced in the year under
review in response to the market situation?
Rudolf W. Hug: In addition to the need to monitor the market
situation at all times and work out possible scenarios for
future trends, we see internal transparency as an increasingly
important success factor in such a challenging, constantly
changing environment. That is why we emphasize
centrally run global processes and systems as effective
tools in combination with our regional customer focus and
expert knowledge.
We are continuing to invest in profitable markets with growth
potential, and we are also ready to cut capacity appropriately
wherever the market dries up owing to the outsourcing
of production facilities, for example. Equally, the resources
thus freed up can then be deployed wherever the market
is growing: this is where a global organization with diversification
across industries and trade lanes such as Panalpina
comes into its own.

Monika Ribar: Greater flexibility, like increasing visibility, is
another key to success in the medium term and beyond.
The same applies to the Group’s finances, as the trend in
our free cash flow during the reporting year illustrates. This
important indicator of our company’s payment power and
potential cash flow underlines our financial strength. Due to
our asset-light business model we offer a strong balance
sheet and high returns on capital. On the sales front we are
even closer to the customer. For instance, Panalpina was
prominently represented at the leading European trade fair
for the sector. There, and in several other locations, we
held customer advisory boards – events designed to help
us identify our customers’ future needs in advance, in
order to enable us to meet them with an appropriate range
of services offering customer-focused end-to-end supply
chain management solutions. Our Supply Chain Diagnostics
Tool for example is one such new service. This extremely
useful tool allows our customers to identify potential added
value within their supply chains. Furthermore, at the beginning
of the year we demonstrated our ability to adjust rapidly
to new market realities by promptly introducing a cost-cutting
program, which included reducing the headcount.
The measures were implemented on time and achieved the
intended results. We did not curtail our training and professional
development programs or schemes to transfer
skills within the company, however, since we recognize that
we need properly trained staff if we are to meet the needs
of our customers and generate growth for the company.
We ensure that our employees
are continuously trained in
order to meet the needs of our
customers.
Panalpina Annual Report 2009

Is this also reflected in Panalpina’s corporate strategy
and culture?
Rudolf W. Hug: Our strategy takes the long view, and we
are placing greater emphasis on growth, people, systems
and cost control.
During the reporting period,
we succeeded in establishing
an appropriate level of cost
awareness within the company.
Monika Ribar: We are currently improving the balance
between major clients and customers from the SME seg-
ment. There are growth opportunities in both segments,
as well as in our key industries. We lay particular stress on
expanding our supply chain management competence,
which of course also covers the established air and ocean
freight business. As I have already mentioned, we are
continuing to invest in the training and professional development
of our staff without restriction. In addition, we
ensure that our partners and suppliers keep their employees
Panalpina Annual Report 2009
fully up to date with the latest legal provisions, guidelines,
regulations and current safety and environmental standards,
for example. Our internal and external network of welltrained,
motivated people is our biggest asset. Our staff are
supported by centrally run systems and processes that
make the work of our local offices easier while safeguarding
the quality of our services throughout the world. During
the period under review, we succeeded in establishing
an appropriate level of cost awareness within the company.
However, cost control will continue to play an important
role and has now become an integral part of our corporate
culture.
Rudolf W. Hug: The highly motivated management team
led by Monika Ribar has successfully strengthened
Panalpina’s team outlook during a very challenging period,
and has been able to deploy this to the clear benefit of our
customers. We regularly find that we win orders because
of our proven ability to present ourselves, and work together,
as a global team. As ever, Panalpina’s employees are the
key to our success. Our customers are increasingly recognizing
that Panalpina maintains quality standards throughout
its worldwide network and that the Company knows
how to pass on important aspects of its business culture to
partners, suppliers and subcontractors, too.

Were targets met in the year under review?
Rudolf W. Hug: The targets set for the year under review
were not met, nor were we able to expand our market
position. However, Panalpina achieved an increase in volumes
for both air and ocean freight, from the second to
the third and again from the third to the fourth quarter of
2009. Nevertheless, this trend was not able to compensate
for the previous big drop in freight volumes in various
customer segments, or for the collapse in rates previously
mentioned. Our balance sheet was also hit by legal costs,
incurred mainly in connection with the government investigations
that are underway. We did not expect these costs to
be so high but our ability to control these costs is limited.
As previously mentioned, there was a gratifying increase in
free cash flow, despite a fall in gross profit. Operating
expenditure was successfully reduced to the target amount
during the year under review. Although there was only
weak growth in freight volumes on most trade lanes, from
a low baseline owing to the crisis, we were able to gain
additional market share on the most important ocean freight
route between Asia and Europe, for example.
The Panalpina network has
demonstrated its strength, even in
times of crisis. We all know that
there are no easy answers to the
challenges we currently face.
Monika Ribar: I would like to seize this opportunity to thank
our employees most sincerely for all their hard work during
the past twelve months. The Panalpina network has demonstrated
its strength, even in times of crisis. We all know
that there is no easy answer to the challenges we currently
face. However, I am convinced that the measures already
implemented will bear fruit in the medium term.
Panalpina Annual Report 2009

10
What is the current situation regarding the FCPA and
antitrust allegations?
Rudolf W. Hug: The investigation in connection with alleged
violations of the Foreign Corrupt Practices Act (FCPA),
mainly in Nigeria, is drawing to a close. At the start of
December 2009, Panalpina commenced settlement negotiations
with the U.S. Department of Justice (DOJ). For
almost three years, in-depth reviews of operational activities
in several countries, among them difficult markets in West
Africa and Central Asia, have been conducted.
As part of its numerous initiatives to strengthen and expand
compliance on a global level, Panalpina’s Compliance
Department has played an active role in critical aspects of
the investigation under the oversight of outside counsel
and in coordination with the DOJ. Panalpina’s compliance
initiatives include the decision to close its Nigerian organization
and restructure its operations in West Africa. It is an
inherent feature of Panalpina’s business philosophy that
the Company should demonstrate the highest levels of
trustworthiness and reliability in relation to its customers.
Panalpina Annual Report 2009
At meetings between representatives of the DOJ and
Panalpina’s Compliance Department, the U.S. authorities
have received regular updates on the Company’s compliance
programs and their implementation at local level.
Panalpina’s compliance efforts have been applauded
by major customers.
We are confident that the settlement discussions with
the U.S. Department of Justice in connection with alleged
violations of the FCPA will be finalized in the first half of
2010.
Monika Ribar: In October 2009, there was a new development
in connection with the alleged anticompetitive behavior:
the Canadian and the Australian Competition Bureaus
closed their investigations into alleged anticompetitive
activity in the international freight forwarding industry, citing
a lack of evidence for any undue lessening of competition.
In February 2010, Panalpina was served with a Statement
of Objections by the European Commission. This
document contains the European Commission’s preliminary
view with respect to alleged anticompetitive behavior
in the freight forwarding industry. It is not possible to predict
the outcome of the antitrust proceedings at this stage.
They may, however, result in material penalties being
imposed on Panalpina entities.

What is your assessment of Panalpina’s share price
performance during the year under review?
Rudolf W. Hug: The share price rallied during the course
of the 52-week period but reflects the problems previously
described. In the coming months our task is to convince
the market of our potential and earnings power. We believe
there is a good chance that the market will value the Company
realistically once the legal cases previously mentioned
have been resolved.
What challenges do you see facing the Company over
the medium to long term?
Rudolf W. Hug: The trend towards globalization has led to
multinational companies either outsourcing their production
to low-wage countries or relocating their factories
nearer to the distribution markets again for quality reasons.
Panalpina can and must keep pace with the current trend.
In addition, huge new consumer markets are appearing,
with new centers that will eventually challenge the traditional
dominance of the purely Western-oriented economy. The
economic crisis has struck a blow against free trade, with
a number of governments moving further in the direction
of protectionism. As a forwarding and logistics company,
Panalpina has to face up to this reality. We are very well
positioned, thanks to our global presence and industry
knowledge. Sustainability will certainly be taken more
seriously in future – Panalpina sets a good example and
was awarded global ISO 14001 certification in January
2010. The next step is to help partners and suppliers make
similar progress.
Monika Ribar: We have noticed that in some cases it is
now easier to implement cost-cutting measures on behalf
of our customers to make their supply chains greener
and more efficient. “Green logistics” will increasingly feature
on the agenda as dwindling fossil fuel reserves and
emission restrictions push up the oil price when the economy
recovers. Cost competitiveness remains a constant
challenge, but as one of the key competencies in our fragmented
market it is also crucial to future growth.
Panalpina’s compliance efforts
have been applauded by major
customers.
Panalpina Annual Report 2009
11

12
Introduction
Group Management Structure
As at 31 December 2009
Chief M and S and
SCM Officer
Sandro Knecht
Global Accounts
Industry Verticals*
Supply Chain
Management
Marketing and CRM
Tender Management
* Automotive, Healthcare and Chemicals, Hi-tech, Oil and Gas, Retail and Fashion, Telecom
Panalpina Annual Report 2009
Corporate Audit Board of Directors
Compensation and
Chairman
Günther Casjens
Nomination Committee
Rudolf W. Hug
Yuichi Ishimaru
Vice Chairman
Wilfried Rutz
Glen R. Pringle
Guenter Rohrmann
Roger Schmid
Audit Committee
Legal and Compliance Committee
Chief Product and
Procurement Officer
Dominik Tichelkamp
Air Freight
∙ Own Controlled
Network
∙ Commercial
Ocean Freight
∙ FCL Product
∙ LCL Product
Overland
Chief Operating
Officer
Karl Weyeneth
Asia Pacific
Europe /Africa /
Middle East /CIS
Central and South
America
North America
Panprojects
Operations
BPQ
Chief Executive Officer
Monika Ribar
Corporate Communications Corporate Development
Corporate Compliance Corporate Information Technology
Chief Financial
Officer
Marco Gadola
Corporate Accounting
Corporate Taxes
Corporate Controlling
Investor Relations
Indirect Purchasing
Strategic Finance and
Projects
Group Treasury
Chief Human
Resources Officer
Alastair Robertson
HR Processes and
Projects
International
Compensation and
Benefits
HR Operations
Capability
Development and
Panalpina Academy
www.panalpina.com / organization
Corporate Secretary /
General Counsel
Christoph Hess
Corporate Legal
Services
Government Affairs
Corporate Insurance
Management

Executive Board
From the left:
Christoph Hess (Corporate Secretary and General Counsel)
Sandro Knecht (Chief Marketing and Sales and Supply Chain Management Officer)
Monika Ribar (President and CEO)
Karl Weyeneth (Chief Operating Officer)
Marco Gadola (Chief Financial Officer)
Alastair Robertson (Chief Human Resources Officer)
Dominik Tichelkamp (Chief Product and Procurement Officer)
Panalpina Annual Report 2009
13

14
Reports of the Board of Directors and the Executive Board
Report of the Board of Directors
Focus on compliance
2009 has been a very challenging year with various of Panalpina’s industry verticals hit
hard by the decline in volumes as well as volatile freight rates. Panalpina continued to
invest into building up a rigorous and industry-leading compliance structure, providing
the Group with an additional competitive edge in the medium term. Compliance will
be one of the key drivers to gain back lost business and to generate new business in
the future.
Results and business performance
In the year under review, the Panalpina Group posted
gross profit of CHF 1,377 million (– 20.9%), EBITDA of
CHF 80 million (– 66.9%) and consolidated net earnings of
CHF 10 million (– 90.8%). At Air Freight, forwarding volumes
decreased by 19% to 731,000 tonnes. At Ocean Freight,
forwarding volumes decreased by 14% to 1,103 million TEUs.
The Group maintained its position among the world’s top
five in air freight and ocean freight. Supply Chain Management
saw net revenues decline by 29% to 884 million. Of
the strategic customer segments, Automotive and Hi-tech
were particularly hard hit by the global decline in freight
volumes, which also affected all the other industries. On
the other hand, numerous sizeable new and additional
contracts were acquired in the other customer segments,
both from major customers and in the SME segment,
although these were not sufficient to offset the overall drop
in volumes.
Panalpina’s asset-light business model once again proved
its worth in the extremely difficult market conditions
experienced during the reporting year: as far as possible,
the Group provides services by managing the resources
of top-class subcontractors rather than by tying up capital
in infrastructure of its own.
Shareholder structure
Ernst Göhner Stiftung remains Panalpina’s main shareholder,
having increased its stake by about one percentage
point to approximately 45%. On the cutoff date, one institutional
investor held over 5% of the share capital (for details,
see page 66). At this point in time, the company itself held
5.33% of all shares.
Panalpina Annual Report 2009
Board of Directors and Executive Board
During the period under review there were no changes to
the composition of the Board of Directors or the Executive
Board. Panalpina was thus able to send a clear signal of
stability and continuity, both internally and externally, even
in a particularly challenging market environment. The
amendments to the Articles of Association approved at the
last Annual General Meeting, at which the mandate of
each member of the Board of Directors was limited to one
year, require elections to be held for all members of the
Board of Directors at the 2010 Annual General Meeting.
Compliance
The Compliance Program underwent a major expansion
during the year under review. This involved doubling the
size of the Compliance team to eight full-time posts,
including the Corporate Compliance Officer, who reports
directly to the CEO and the Legal and Compliance Committee
of the Board of Directors.
By the end of 2009, 40 training modules for managers
had been completed at various sites throughout the world.
These modules were mainly on the topic of preventing
violations of antitrust laws. During the reporting year, two
modules were added to the e-learning platform that had
been successfully launched in 2008 in order to provide
training and development on the theme of compliance. Its
initial focus was on the Code of Conduct and the topic
of anticorruption. The antitrust submodule was completed
by 11,500 employees in 2009. A second new e-learning
module, focusing on topics connected with commercial
law, was launched in November of the year under review.
Detailed information about the entire Compliance Program,
including the Group’s regular compliance audits and joint

compliance activities with customers, partners, suppliers
and subcontractors, can be found in the Corporate Culture
section starting on page 62.
Investigations by the U.S. Department of Justice (DOJ)
into alleged violations of the U.S. Foreign Corrupt Practices
Act (FCPA) were largely completed during the year under
review. Panalpina is now taking part in settlement negotiations
with the DOJ.
As reported earlier, Panalpina is a party to a multinational
probe into alleged anticompetitive behavior conducted
by several competition authorities, including the European
Commission, the U.S. Department of Justice and the
Swiss Competition Commission, against a number of major
freight forwarding companies. The investigations commenced
in October 2007. In Canada and Australia respective
investigations have been closed in the meantime due
to a lack of evidence. In February 2010, Panalpina was
served with a Statement of Objections by the European
Commission. This document contains the European Commission’s
preliminary view with respect to alleged anticompetitive
behaviour in the freight forwarding industry.
Panalpina will closely examine the Commission’s preliminary
findings and will respond in due time. The Statement
of Objections enables the addressees to respond to the
Commission’s preliminary findings and does not prejudge
the final decision of the European Commission which is
subject to appeal to the European courts.
It is not possible to predict the outcome of these proceedings
at this stage. They may, however, result in
material penalties being imposed on Panalpina entities.
Panalpina has also intensified its cooperation with the
U.S. DOJ (Antitrust Division), with the aim of reaching
a settlement in the first half of 2010. It is not yet possible
to predict how long proceedings of other compliance
authorities will take.
Legal and consultancy costs, incurred mainly in connection
with the DOJ investigations into alleged violations of the
FCPA, came to CHF 55 million in total during the year under
review, which is higher than originally expected.
Dividend distribution
Reports of the Board of Directors and the Executive Board
Based on the results for fiscal 2009, the Board of Directors
of Panalpina World Transport (Holding) Ltd. proposes to
the Annual General Meeting that no dividend shall be paid.
Rudolf W. Hug
Chairman of the Board of Directors
www.panalpina.com/bod
Panalpina Annual Report 2009
15

16
Reports of the Board of Directors and the Executive Board
Report of the Executive Board
Strong free cash flow generation despite lower volumes
and gross profits
2009 was a difficult year for Panalpina and the forwarding and logistics industry.
World trade was hit hard by an exceptionally weak demand for investment and consumer
goods as well as significant inventory destocking around the globe, leading to trade
volumes plummeting at an unprecedented rate and therefore affecting Panalpina’s core
markets. The Company reacted early by downsizing its cost base and by stringently
focusing on cash generation.
Market conditions and outlook
2009 could hardly have been a more turbulent or challeng-
ing year. The international forwarding and logistics industry
has been confronted with an extremely difficult economic
environment. The World Bank estimates that global trade
volumes fell by 14%. China overtook Germany in 2009 to
become the world’s top exporting nation, another milestone
in China’s rapid rise and growing economic influence. But
in a year of global economic turmoil and weakness, China
achieved the top ranking because its exports fell only 16%,
while Germany’s exports fell more steeply.
In this harsh environment, while Panalpina reacted quickly
and stringently on the cost side and increased productivity,
the measures taken could not compensate for the sharp
fall in volumes, and, during the latter part of the year, the
unprecedented pressure on the Company’s unit revenues
following the rapid increase in buying rates which are
passed on to customers with a time lag. In addition, while
Panalpina has consistently been gaining market share
across most trade lanes and products over the last few
years, this trend was interrupted in 2009 on a number of
trade lanes and products for a variety of reasons. While
management believes the Company is generally well diversified
geographically as well as by focusing on a variety
of customer segments and industries, it is within the cyclical
industries (in particular Automotive, Hi-tech and Telecom,
which jointly accounted for approx. 39% of Group turnover
in 2008 and approx. 36% in 2009) where the Company’s
turnover suffered over proportionately. Compared to some
of its peers in the industry, management also believes
Panalpina has a relatively high proportion of large customers
(so-called “Global Accounts,” which jointly accounted
for approx. 32% of Group turnover in 2008 and approx.
29% in 2009), with which the Company generated overproportionately
lower turnover in the year under review.
Panalpina Annual Report 2009
Moreover, Panalpina has also been impacted in generating
new business by the ongoing investigation of the U.S.
Department of Justice regarding potential violations of the
Foreign Corrupt Practices Act, which made it difficult to
obtain business from certain customers.
However, the Company has considerably invested into
building up a rigorous and industry-leading compliance
structure over the last two years, and management believes
that this will give the Group an additional competitive edge
in the medium term. Furthermore, the Company has
achieved various milestones in further strengthening its
sales and product structure. During the course of the year,
Panalpina has not only extended the service offering by
defining and launching a range of new, Group-wide Supply
Chain Management products, but the Company has also
worked out a Trade Lane Concept with the goal to propel
sales and improve unit profitability by more closely aligning
procurement and sales activities. Another important
achievement in 2009 includes the roll-out of a new management
information system (MIS) which greatly improves the
level of visibility and transparency on individual customer
and core product level and will thus support the business
decision-making process. Moreover, the Group has started
to roll out a generic process framework which is geared
at growing particularly the Company’s client base in the
medium-sized enterprise segment. Another priority is to
actively manage sales by leveraging the increased visibility
and transparency on individual customer and core product
level, and also includes the redefinition and global alignment
of sales incentives which historically have largely been
handled locally.

The world economy has been stabilized through interest
rate cuts and various government stimulus programs. As
a result, a rebound in global trade took place during the
last few months of 2009. Many countries technically overcame
the recession in the third quarter, with trade volumes
starting to accelerate and freight rates (i.e. forwarders’ buying
rates) rising again. The sustainability of this rebound
is highly controversial amongst economists, given that the
government stimulus programs are soon to run out. While
management believes that any economic recovery in 2010
will be moderate, the market fundamentals in the industry
remain intact and the global outsourcing trend and with it
the demand for increasingly complex supply chain management
solutions is likely to continue and should offer ample
new business opportunities for Panalpina.
For the coming year, the Group will have to demonstrate
its capability of building on the range of measures taken
and milestones achieved during 2009 by accelerating and
effectively executing on the sales process. Panalpina’s
financial strength, as well as its high degree of customer
orientation and business model of integrated asset-light
supply chain management solutions form a solid basis to
achieve this. While focusing on profitable growth opportunities
on one side and stringent cost management as well
as increasing productivity on the other side, the Group
is at the same time committed to continuing to invest in its
people and IT systems.
Net forwarding revenue (NFR)
In 2009, Panalpina’s net forwarding revenue (NFR)
amounted to CHF 5,958 million (CHF 6,292 million in local
currencies), down from CHF 8,878 million a year earlier.
The reduction can be attributed to a variety of factors,
including distinctly lower freight volumes as a result of the
significant decline in world trade, as well as the discontinuation
of business following the divestment of the Group’s
Nigerian assets (effective as of 1 October 2008). Other
important factors leading to the reduction in turnover but on
which the company has limited influence include the
sharply lower freight rates prevailing in the market throughout
a large part of the year, lower average fuel surcharges
as well as exchange rate fluctuations.
At regional level, net forwarding revenue fell significantly in
all four reporting regions but was overproportionately hit in
Europe /Africa / Middle East / CIS (EMEA) where NFR in
2009 declined by 35.9% to CHF 3,189 million. Apart from
weak consumer demand and severely depressed freight
Reports of the Board of Directors and the Executive Board
rates, this region was impacted the most from the withdrawal
from Nigeria and from the depreciation of the euro (– 4.9%)
and the British pound (–15.2%) vs. the Swiss franc.
In North America, NFR declined by 32.8% to CHF 1,176 million.
This can be attributed to the difficult economic situation
which particularly affected transatlantic trade flows.
The U.S. dollar (+0.1%) on average was almost unchanged
vs. the Swiss franc during 2009.
Compared to 2008, the Group’s NFR in 2009 in Asia
Pacific fell 25.9% to CHF 891 million, and in Central and
South America it fell 25.9% to CHF 702 million. In these
two regions, the decline in turnover was underproportionate,
which management believes is related to relatively
strong intraregional traffic and the first signs of an economic
recovery which became apparent in these markets
in the latter half of the year.
In 2009, the Panalpina Group generated 53% of its net
forwarding revenue in Europe /Africa/Middle East / CIS,
20% in North America, 15% in Asia Pacific and 12% in
Central and South America.
Net forwarding revenue per region
2009 2008
in million CHF
5,000
4,000
3,000
2,000
1,000
0
3,189
4,976
Europe/Africa/
Middle East/CIS
1,176
1,751
North
America
702
Central and
South America
Net forwarding revenue per region (2009)
Europe/Africa/Middle East/CIS
North America
Central and South America
20%
948
12%
53%
Asia Pacific 15%
891
1,203
Asia Pacific
Panalpina Annual Report 2009
17

18
Reports of the Board of Directors and the Executive Board
All of the Group’s core business segments recorded a
decline in net forwarding revenue in 2009. According to the
International Air Transport Association (IATA), international
air freight volumes (measured in freight ton kilometers) contracted
by 14% during 2009. Drewry Shipping Consultants
estimate that at the same time, global volumes handled in
the ocean container market shrunk by 12%, the first year
ever in history that the ocean container market faced negative
growth. Notwithstanding these market developments,
the Group’s transported volumes and turnover were substantially
impacted. Following the resulting supply overhang
in the carrier market, air and ocean freight rates collapsed
to historically unprecedented levels, leading to a significant
reduction of the Group’s NFR due to the pass-through
nature of freight rates to customers for an asset-light forwarder
such as Panalpina. In addition, average jet fuel and
bunker prices in 2009 were 44% and 30%, respectively,
below 2008 levels, resulting in much lower fuel and bunker
surcharges (essentially a pass-through item for a forwarder)
which the Group invoiced to its customers.
As a result of these developments, the Group’s air freight
NFR decreased by 37.4% to CHF 2,714 million and was
the segment which suffered the most. In the ocean freight
segment, NFR declined by 28.5% to CHF 2,360 million.
In the third segment, Supply Chain Management (SCM),
NFR declined by 29.0% to CHF 884 million. This segment
was most affected by the Group’s withdrawal from Nigeria
and the ongoing investigation by the U.S. Department
of Justice.
In 2009, the Panalpina Group generated 45% of its net
forwarding revenue with air freight, 40% with ocean freight
and 15% with SCM.
Net forwarding revenue per segment
2009 2008
in million CHF
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2,714
4,334
Air Freight Ocean Freight Supply Chain
Management
Panalpina Annual Report 2009
2,360
3,299
884
1,245
Net forwarding revenue per segment (2009)
Air Freight
Ocean Freight
Supply Chain Management
Gross profit (GP)
40%
15%
45%
Gross profit, a better measure for actual sales perfor-
mance than net forwarding revenue in the forwarding
industry, decreased by 20.9% from CHF 1,742 million in
2008 to CHF 1,377 million in 2009. In local currencies,
the decrease was 16.9%. This 4% difference, which had a
negative impact on GP of CHF 70 million, is mainly due to
the adverse movement of the euro against the Swiss franc.
Apart from markedly lower freight volumes, gross profit
was also negatively affected in EMEA and North America
by the full-year impact of the Group’s withdrawal from
Nigeria, which management estimates had a CHF 42 million
negative impact on GP in 2009.
The gross profit margin (gross profit as a percentage of
net forwarding revenue) increased from 19.6% to 23.1%,
mostly due to the markedly lower average fuel surcharges
and freight rates, which depressed net forwarding revenue
while having a relatively neutral effect on gross profit as
these are normally pass-through items (subject to a time
lag) for a freight forwarder.
Europe /Africa / Middle East / CIS (EMEA) is the most important
region within Panalpina, representing more than half
of the Group’s gross profit. In 2009, gross profit generated
in EMEA decreased by 24.9% to CHF 731 million. Apart
from sharply lower business volumes related to the significant
contraction in world trade, it was the Group’s withdrawal
from Nigeria which impacted this region the most.
For this region, the negative incremental impact on gross
profit from this effect in 2009 compared to 2008 is estimated
at approximately CHF 35 million. In addition, the currency
development was not favorable within the region, mainly
due to the euro but also the British pound, with both significantly
depreciating against the Swiss franc.
In North America, gross profit declined by 19.2% to
CHF 256 million, which is a reflection of the lower volumes

handled in this region as a consequence of the global
recession and destocking which led to a substantial
reduction of global trade flows. Included in the decline of
GP in this region is also the incremental effect from the
withdrawal from Nigeria which was equivalent to approximately
CHF 7 million in 2009 compared to 2008.
The Asia Pacific region recorded a fall in GP of 14.0% to
CHF 245 million, and GP in Central and South America
fell 13.2% to CHF 145 million. The contraction of business
in both regions was less than in EMEA and North America
and is in large parts related to the relatively better economic
development of these regions in 2009, which manifested
itself in relatively strong intraregional and interregional trade
flows in and between these parts of the world.
In 2009, the Panalpina Group generated 53% of its gross
profit in Europe /Africa / Middle East / CIS (EMEA), 19% in
North America, 18% in Asia Pacific and 10% in Central and
South America.
Gross profit per region
2009 2008
in million CHF
1,000
800
600
400
200
0
731
973
Europe/Africa/
Middle East/CIS
Gross profit per region
Europe/Africa/Middle East/CIS
North America
Central and South America
Asia Pacific
256
317
North
America
145
167
Central and
South America
19%
10%
53%
245
285
Asia Pacific
18%
Reports of the Board of Directors and the Executive Board
As with turnover, all of the Group’s core business segments
also recorded a decline in gross profit in 2009, albeit to a
lesser extent. The Group’s gross profit realized through air
freight forwarding services decreased by 24.5% in 2009,
reaching CHF 562 million versus CHF 744 million the year
before. Most of the reduction was related to the sharp fall
in volumes in the global air freight market which affected
the Group. Negative exchange rate developments have negatively
impacted the air freight gross profit by CHF 31 million.
In addition, this segment also suffered from the withdrawal
from Nigeria (estimated CHF 13 million less GP in 2009
compared to 2008).
In the ocean freight segment, GP declined by 17.8% to
CHF 458 million. The ocean freight market faced factors
similar to the air freight market – specifically, a significant
decrease in demand for freight forwarding services leading
to a double-digit fall in freight volumes and an unprecedented
volatility in buying rates. During the first half of the
year, the Group was able to compensate a part of the significant
volume drop by taking advantage of the rapid fall
of buying rates, driven by the overcapacities in the market,
and hence experienced an improvement in its gross profit
per transported cargo unit. On the other hand, during the
second half of the year, this situation reversed: while volumes
slowly improved sequentially, carriers implemented
substantial rate increases at various points in time, leading
to a severe erosion of the Group’s gross profit per unit of
cargo, as rate changes can only be passed on to customers
with a certain time lag.
Exchange rate fluctuations had a negative impact on
the gross profit generated from ocean freight activities
amounting to CHF 12 million in 2009. The impact from
the Group’s withdrawal from Nigeria on its ocean freight
business was only marginal.
Gross profit generated through the Group’s Supply Chain
Management (SCM) activities declined by 19.0% to
CHF 357 million. This segment was most affected by the
Group’s withdrawal from Nigeria and the ongoing investigation
by the U.S. Department of Justice. The related incremental
shortfall in GP in 2009 is estimated at CHF 27 million
compared to 2008. Organically, this segment was
less affected by the global economic downturn than the
Group’s freight forwarding activities, which management
attributes to the first visible successes from the various SCM
initiatives launched and implemented during the course
of last year. Exchange rate fluctuations in 2009 had a negative
impact of CHF 27 million on gross profit derived from
SCM activities.
Panalpina Annual Report 2009
19

20
Reports of the Board of Directors and the Executive Board
In 2009, the Panalpina Group generated 41% of its
gross profit with air freight, 33% with ocean freight and
26% with SCM.
Gross prot per segment
2009 2008
in million CHF
800
700
600
500
400
300
200
100
0
Air Freight
Ocean Freight
562
744
Air Freight Ocean Freight Supply Chain
Management
Gross prot per segment (2009)
Supply Chain Management
Panalpina Annual Report 2009
458
557
33%
26%
357
441
41%
Earnings before interest, taxes,
depreciation and amortization
(EBITDA)
The Group’s EBITDA decreased by 66.9% at actual
exchange rates (– 61.3% in local currencies) from
CHF 241 million in 2008 to CHF 80 million in 2009. The
development of EBITDA was impacted by the following
two factors:
• Personnel expenses decreased by 11.4% (– 7.5% currency
adjusted) from CHF 992 million in 2008 to
CHF 879 million in 2009. The substantial reduction in
personnel expenses mainly came from the strict costsavings
program which the Group implemented at the
end of the first quarter in reaction to the sharp volume
declines and which resulted in the Company reducing
its workforce by some 12% during 2009. Through this
reduction in personnel, the Group also incurred non-recurrent
severance charges in the amount of CHF 10 million,
the full amount of which was booked to personnel
expenses.
• Other operating expenses dropped by 17.8% (–14.2%
currency adjusted), from CHF 509 million in 2008 to
CHF 419 million in 2009. This category of expenses
includes certain costs that need to be stripped out to
assess the underlying development during the reporting
period. Figures for the fiscal years 2009 and 2008 comprise
additional expenses mainly related to the FCPA
investigation by the U.S. Department of Justice. These
legal and consulting fees amounted to CHF 45 million in
2008 and CHF 55 million in 2009. In 2008, the Company
had also incurred CHF 10 million for the liquidation of its
Nigerian subsidiary.
Overall development
EBITDA Operating expenses
in million CHF
2009
2008
80
241
1,297
1,501

Regional development
In addition to the factors that have impacted the gross
profit, the following operating cost items had a significant
influence on the EBITDA per region during the reporting
period:
• The region Europe /Africa / Middle East / CIS (EMEA)
incurred severance charges in the amount of
CHF 7 million during 2009. In the previous year, this
region had absorbed the CHF 10 million of liquidation
costs mentioned above.
• North America incurred CHF 22 million in legal and
consulting fees in 2009 and CHF 18 million in 2008.
• The region labeled “Corporate” incurred CHF 33 million
in legal and consulting fees in 2009 and CHF 27 million
in 2008.
• There were no material non-recurring charges incurred
in any of the other two reporting regions, neither in 2009
nor in 2008.
EBITDA per region
2009 2008
in million CHF
150
125
100
75
50
25
0
–25
–50
43
139
Europe/
Africa/Middle
East/CIS
–27
14
North
America
15
24
Central
and South
America
64
108
–15
–44
Asia Pacific Corporate
Balance sheet
Current assets
Reports of the Board of Directors and the Executive Board
The Group’s cash and cash equivalents increased by
CHF 170 million during the reporting period – from
CHF 362 million on 31 December 2008 to CHF 532 million
on 31 December 2009. Despite the lower profitability,
the Group was able to increase its cash balance significantly
which can be attributed mainly to a very favorable
development of net working capital.
Trade receivables and unbilled forwarding services
decreased by CHF 254 million, from CHF 1,194 million at
the end of 2008 (equivalent to 61% of total assets) to
CHF 940 million at the end of 2009 (equivalent to 49% of
total assets). The strong decrease in trade receivables was
the result of a combination of a strong focus on collection,
the depreciation of the euro versus the Swiss franc during
the reporting year, and the significant drop in turnover.
Other current assets remained relatively stable and
amounted to CHF 127 million at the end of the reporting
period 2009 compared to CHF 123 million at the end of
the reporting period 2008.
Non-current assets
The Group’s non-current assets increased from CHF
292 million on 31 December 2008 to CHF 326 million on
31 December 2009, primarily as a result of an increase
in both post-employment benefit assets and deferred
income tax assets. Property, plant and equipment were
held at the same level. The decrease of CHF 6 million is
almost fully attributable to currency effects.
Total assets
Cash and cash equivalents
Trade receivables and unbilled forwarding services
in million CHF
2009
2008
Other current assets
Non-current assets
532 940 127 326
362 1,194 123 292
Panalpina Annual Report 2009
21

22
Reports of the Board of Directors and the Executive Board
Trade payables and accrued cost of services
The Group’s trade payables and accrued cost of services,
which jointly comprised 64% of total liabilities on
31 December 2009, slightly increased to CHF 679 million,
compared to CHF 670 million on 31 December 2008. This
favorable development – in light of the significant decrease
of cost of goods sold during the reporting period – is primarily
a result of a significantly improved payment discipline
and renegotiation of payment terms with various
vendors.
Borrowings (short-/long-term)
Total borrowings were reduced from CHF 20 million at
year-end 2008 to CHF 13 million at year-end 2009.
Other liabilities
The Group’s other liabilities only showed minor fluctuations
during the reporting period and decreased from
CHF 410 million at year-end 2008 to CHF 369 million at
year-end 2009, helped by currency effects and a reduction
in provisions.
Total equity
The most significant factors influencing the development
of shareholders’ equity were the income of CHF 10 million
and dividend payments of CHF 45 million (2008: CHF
77 million). Total equity decreased by CHF 7 million during
the reporting period, from CHF 871 million on 31 December
2008 to 864 million on 31 December 2009.
Total liabilities and equity
Trade payables and accrued cost of services
Short- and long-term borrowings
in million CHF
2009
2008
13
679
670
20
Panalpina Annual Report 2009
369
410
Other liabilities
Equity
864
871
Cash flow
Net cash from operating activities
The Group’s business operations showed cash generation
of CHF 260 million, CHF 67 million above last year (2008:
CHF 193 million). The drop in EBITDA was compensated
by a stringent working capital management, especially by
reducing trade receivables and increasing days payable
outstanding, which resulted in additional cash generation
of CHF 175 million.
Working capital management
The net working capital decreased from CHF 352 million on
31 December 2008 to CHF 132 million on 31 December
2009. The decrease is mainly driven by a substantially lower
balance of trade receivables and a reduction in unbilled
forwarding services. At the same time, the Company managed
to keep its trade payables and accrued cost of services
on a consistently high level, which is primarily a result
of a significantly improved payment discipline across
the Group. A comparison of net working capital to gross
forwarding revenue reveals a significant reduction of net
working capital intensity, which decreased from 3.3% on
31 December 2008 to 1.8% on 31 December 2009.
Cash flow from investing activities
The largest part of investing cash outflows in 2009 was
for expenditures on property, plant and equipment in
the amount of CHF 33 million (mainly IT equipment). The
net cash outflow from investing activities increased to
CHF 34 million and represents an increase of CHF 11 million
over the prior year. The difference to the prior year stems
mainly from a purchase of investments held for trading in
the amount of CHF 11 million and lower proceeds from
selling property, plant and equipment. All capital expenditures
were financed by the cash from operations generated
during the year under review.

Free cash flow
The free cash flow, calculated as net cash from operating
activities and subtracting the cash outflow from investing
activities, accordingly increased from CHF 170 million in
2008 to CHF 226 million in 2009.
Cash flow development
Free cash flow Net cash from
operating activities
in million CHF
2009
2008
Cash flow from financing activities
The net cash used in financing activities decreased significantly
from CHF 182 million in 2008 to CHF 57 million in
2009. The largest part of this improvement relates to the
share buyback program, which the Group completed in
2008 and for which CHF 100 million of cash was used during
that year. Dividends paid in 2009 were CHF 45 million
compared to CHF 77 million in 2008.
Net cash
in million CHF 31 Dec
2009
170
193
226
31 Dec
2008
260
%
change
Cash and cash equivalents 532 362 47%
Other current financial assets 11 0 –
Short-term debt –12 –18 – 33%
Long-term debt –1 – 3 – 67%
Net cash 530 341 55%
Net cash increased by CHF 189 million during 2009.
Part of the cash generated from operations was used for
capital expenditures of CHF 39 million (net) and dividend
payments of CHF 45 million.
Employees
Reports of the Board of Directors and the Executive Board
During 2009, in reaction to the significantly lower business
volumes, the Group reduced the number of FTEs by
12%, from 15,630 on 31 December 2008 to 13,773 on
31 December 2009. Significant reductions took place in all
four reporting regions, and were executed in proportion to
the respective volume declines.
The Group fine-tuned its definition of FTE during the year
2009 to account for specific employees provided by labor
agencies that have previously not been included in the FTE
count. Accordingly, the 2008 FTE figure has been restated
from 15,270 to 15,630 (+ 360 FTEs). Moreover, certain
reclassifications have been made between the regional and
corporate FTE count, which resulted in certain FTEs being
included in the corporate FTE count in 2009 but not in 2008.
When excluding these reclassifications, the corporate FTE
count decreased during the year 2009.
Employees
in full time equivalents (FTEs)
Region 2009 2008
%
change
Europe /Africa / Middle East / CIS 6,007 6,766 –11%
North America 2,237 2,685 –17%
Central and South America 2,202 2,533 –13%
Asia Pacific 2,951 3,286 –10%
Corporate 376 360 4%
Total 13,773 15,630 –12%
Panalpina Annual Report 2009
23

Reporting Regions

26
Reporting Regions
Europe / Africa / Middle East / CIS
Challenging freight volumes, margins and rates
The largest reporting region was hit hard by the economic crisis, which led to declining
freight volumes, volatile rates and shrinking margins. Targets for this region were
not met, however, Panalpina proved capable of overcoming adversity by extending and
winning new contracts.
Areas: 11
Benelux, Central Europe, Eastern Europe, France,
Iberia, Northern Europe, Northwest Europe,
Southwest Europe, Sub-Saharan, Black and
Caspian Sea, Arabian Belt
Net revenue: CHF 3,189 million
Headcount: 6,822
Europe: Supply Chain Management gains momentum
In June of the year under review, Panalpina became the first
forwarding and logistics provider with direct access to the
tarmac at Amsterdam’s Schiphol Airport, where it moved its
offices and warehouse into brand new premises covering an
area of 12,000 square meters. This has enabled Panalpina
to speed up its ground handling activities and improve the
security of the supply chain.
In the UK, there were a number of gratifying developments
even though the market shrank noticeably. Panalpina won
a contract from one of Europe’s biggest manufacturers
of electrical appliances to export its goods to nine different
European countries. Progress was also made in the area
of supply chain management, particularly in the Retail and
Fashion customer segment. That is why Panalpina has
opened a dedicated logistics center for fashion in London.
The new building has 3,300 square meters of office space
and 17,500 square meters of warehousing, and is specially
designed to meet the particular needs of the fashion
industry.
Germany was hit particularly hard in the recession – its gross
domestic product fell by five percent – whereas Poland
posted a small amount of growth. Altogether, gross profit
was lower than expected, but strict cost discipline and
adjustments to the Panalpina Group’s headcount around
the world enabled a positive overall result to be achieved.
Good progress was made with the hotel business (a new
Panalpina Annual Report 2009
area) and solar energy in addition to the traditionally strong
Retail and Fashion, Automotive, Hi-tech, and Healthcare
and Chemicals industries. Air and ocean freight volumes
handled for Germany and Poland were both significantly
above the market level, which declined sharply, and there
was significant pressure on margins, particularly for ocean
freight. The volatility affecting freight rates contributed
to the extremely challenging business environment. Road
haulage volumes increased in the second half of the year.
The Supply Chain Management division made encouraging
progress, winning a number of new projects. A leading
company in the field of planning, developing and producing
machinery and systems for process technology and
for filling and packaging operations awarded Panalpina
a contract to distribute several thousand air freight consignments
per year, carrying spare parts from Europe to the
Asia Pacific region and China. The project also includes
building a distribution and warehousing center in Bangkok,
Thailand. A new center, which opened in Nuremberg last
year, was working at full capacity right from its first year in
operation, thanks to additional customer projects. Work
started on a new site in Munich in November.
Competition for existing and new business became considerably
fiercer in the Western European region, too.
The air freight segment declined by around a quarter, ocean
freight volumes remained more or less stable. In Switzerland,
the main focus of the business is on the Healthcare
and Chemicals, Retail and Fashion, and engineering sectors.
It is clear that the company’s innovative drive is a
source of long-term success, even in a challenging market
environment. The guaranteed temperature-controlled
shipments which Panalpina looks after globally for a major
Swiss pharmaceuticals customer are a good example.
Italy is still strongly represented in the retail and fashion
segment, handling exports for the upmarket fashion sector
and imports of clothing, in addition to its activities in
healthcare and chemicals. Panalpina’s 8,000-square-meter
logistics warehouse in Milan, which is operated exclusively

for one customer, and its air freight shipments of various
European luxury brands to the USA, demonstrate the importance
of this customer segment.
The central and eastern European countries also suffered
significant reductions in volume as a consequence of the
general market trend and the resulting extreme pressure
on prices. The Far East trade lane was the only one to post
volume growth, for ocean freight shipped to the west. In
the year under review, the Austrian group again raised its
profile as a provider of comprehensive SCM solutions to
customers in a variety of sectors. At the beginning of the
reporting year, Panalpina pursued its expansion strategy
by opening a branch in Rijeka, Croatia.
Africa: focus firmly on Oil and Gas
The withdrawal from Nigeria overshadowed Panalpina’s
performance in the year under review. The trends in all
other countries in the reporting region – Angola, Cameroon,
the Republic of the Congo, Gabon and Ghana, along with
South Africa, which is served in collaboration with longstanding
local partner Safcor – were generally in line with
the market environment. The slowdown triggered by the
financial crisis was compounded by falling oil prices.
Nonetheless, the discovery of fresh oil reserves not only in
East Africa, but also in Angola and Ghana, looks set to
open up new market opportunities in the long term. Having
honed its infrastructure in Cabinda and added a further
10,000 square meters to its warehouse capacity in Luanda
since the third quarter of the reporting year, Panalpina is
now well-equipped to meet the present and future challenges
posed by the major oil and gas projects in Angola.
Similar preparations have been made for the forthcoming
offshore oil production projects in Takoradi (Ghana)
by beefing up the workforce of the local organization.
Measures have also been taken to optimize the Panalpinaoperated
African Star coastal shipping line, which directly
links West Africa to the Group’s air freight network. Not
only has transfer of the hub from Brazzaville to Pointe-Noire
(Republic of the Congo) cut transit times, the new transshipment
location also offers greater reliability.
Except for the forwarding and logistics services provided
for the automotive and hi-tech sectors in South Africa,
operations in the reporting region are primarily focused on
the aforementioned oil and gas industry along with the
telecommunications sector. Despite the challenging economic
backdrop, Panalpina managed to clinch major deals
with new customers and expand business with existing
Reporting Regions
customers, particularly in Angola and the Congo. In Gabon,
Panalpina also landed a supply chain management contract
for the nationwide distribution of telecommunications
goods from Libreville.
In the wake of the concluding investigations by the U.S.
Department of Justice (see Board of Directors report on
page 14), winning back customers remains difficult. However,
our agents in the reporting region are confident that
the prospects for a resumption of business will rise significantly
as soon as a settlement is reached.
Middle East: a linchpin between continents
With the air freight hub in Dubai, the Persian Gulf region
offers an ideal interface between Asia, Europe, Africa
and the Indian subcontinent. Here, the oil and gas sector
continues to dominate the local markets. Though not
yet in operation during the reporting year, the new logistics
center in Dubai Logistics City is reserved for exclusive use
by Panalpina.
CIS: divergent trends in shipment volumes
The volume of ocean freight imported to Russia was down
by roughly one-third on the previous reporting year. This was
mainly precipitated by a scarcity of local financing options
coupled with a dramatic slide in domestic purchasing power.
Ukraine experienced a similar fate. In the air freight sector,
the dynamic development of the telecommunications
industry fueled a rise in forwarding contracts. The increase
in freight volumes reflected a growing demand among
Panalpina’s regular customers in the mobile operator segment.
Heartening news also came from the hi-tech sector,
where Panalpina, among other things, successfully tendered
for a supply chain management services contract.
A further fillip to forwarding and logistics business in the
region came from the oil and gas sector, thanks to the high
demand for the shipment of drilling rigs from the USA and
China to Russia. While the site in Georgia was closed on
account of the deteriorating market conditions, December
2009 saw Panalpina open a new branch in the Russian
city of Murmansk, near the Norwegian and Finnish borders
and in close proximity to the Shtokman field, one of the
world’s largest natural gas fields.
Panalpina Annual Report 2009
27

28
Reporting Regions
North America
Sustainable solutions in an unfavorable market
Despite the prompt implementation of measures including process optimization,
cost savings and job cuts, Panalpina USA could not escape the impact of the
economic crisis. Freight volumes continued to decline and the reporting region was
unable to meet its growth targets.
Areas: 2
Canada, USA
Net revenue: CHF 1,176 million
Headcount: 2,187
During the year, Panalpina USA noted a shortage of cargo
capacity, which led to bottlenecks on all trade lanes, especially
in the second half of the year. The resulting increase
in freight rates could not be fully passed on to customers,
and this eventually hit Panalpina’s margins.
The difficult business climate experienced in recent months,
together with a desire to make cost savings, prompted
many companies to optimize their supply chains. Panalpina
was able to exploit this opportunity and conclude significant
new supply chain management contracts. These successes
were particularly gratifying because they dovetail so
well into Panalpina’s vision: constantly to create compelling,
value-creating solutions for all its customers.
The Group-wide strategic focus and orientation of business
activities towards the logistics requirements of the
key industries – Automotive, Healthcare and Chemicals,
Hi-tech, Telecom, Oil and Gas, and Retail and Fashion –
again paid off in the year under review. Growth was posted
especially by Healthcare and Chemicals and by Retail and
Fashion.
Dixie Jet – an example of a successful partnership
In autumn 2009, Panalpina renewed its cooperation agreement
with its air freight partner Atlas Air, thus ensuring the
continuation of the successful “Dixie Jet” service, which
connects the southern, south-eastern and central regions
of the USA with Europe. Each week, a Boeing 747F
freighter flies from Luxembourg to Huntsville /AL and back,
as well as from Luxembourg to Huntsville, on to Guadala-
Panalpina Annual Report 2009
jara (Mexico), and back to Huntsville, before returning to
Luxembourg via Prestwick (Scotland). From Luxembourg,
Panalpina also operates a connection service to West
Africa, which the company uses to link its main oil and gas
hubs in Houston, Aberdeen, Moerdijk (Netherlands) and
West Africa. This service is of particular benefit to customers
in the oil and gas sector, but it is also useful to
large companies and SMEs.
Cold-storage facilities for a seamless cold chain
A seamless cold chain is of decisive importance to the
pharmaceutical industry and its logistics. Medical products
are often very sensitive to changes of temperature.
The shelf-life of vaccines, for example, may be significantly
reduced if the temperature at which they are stored fluctuates
up or down, even for a short time. The commissioning
of a 460-square-meter cold store in Huntsville presents a
valuable business opportunity for Panalpina USA.
Optimizing the customer mix
Panalpina USA is expecting the market environment to
remain challenging in 2010. As before, it believes that
growth opportunities are to be found by concentrating its
business activities on the key industries. In addition, the
Group intends to go on steadily expanding the Marketing
and Sales division with an increased focus on the SME
segment, in order to optimize the customer mix. Panalpina
also intends to achieve additional growth by means of the
new Trade Lane Management concept.
By expanding its premises in Laredo (Texas), McAllen
(Texas) and Los Angeles (California), Panalpina is strengthening
its presence and customer focus in North America.

Central and South America
New logistics centers add depth to Supply Chain
Management offering
In contrast to other parts of the world, the financial and economic crisis had only a
limited impact in Central and South America. Although Panalpina can look back
on pleasing progress, especially in the telecom sector, it failed to meet its growth
targets for the reporting region.
Compared with the rest of the world, South America suf-
fered less than other regions in the financial and economic
crisis. Nevertheless, Panalpina saw freight volumes decline,
especially in the first half of the year. From mid-year onwards,
the Group noted a slight trend reversal, with demand for
forwarding and logistics services increasing in both the air
and ocean freight segments.
New logistics centers in Chile and Brazil
Supply chain management was the growth driver in this
region. New contracts were concluded in this segment,
thanks to new logistics centers in Santiago, Chile and
Manaus, Brazil. However, operations at the new facility
commenced unexpectedly slowly, and Panalpina was not
able to achieve the targets set for the new state-of-the-art
center in Santiago, Chile.
In the Brazilian freeport of Manaus, capital of the state of
Amazonas, Panalpina moved into a new, larger warehouse
facility. This serves as a base from which the company
arranges shipments throughout Brazil and to other Latin
American countries, primarily for customers in the telecommunications
sector.
By commissioning these facilities, Panalpina has consolidated
its supply chain management service in the region
and paved the way for further growth in this business area.
Positive trend in the key industries
Business activity in the Telecom sector, which – alongside
Hi-tech and Automotive – is one of Panalpina Brazil’s main
key industries, also made a positive contribution to the result.
For instance, Panalpina provides comprehensive forwarding
solutions between China and Brazil for a leading global
telecommunications company. The Group also offers local
distribution and warehousing services in Brazil.
Areas: 3
Andina, Mercosur, Middle America
Net revenue: CHF 702 million
Headcount: 1,755
Panalpina believes that there is growth potential in the oil
and gas business, too. During the year under review, the
Group was able to reinforce its market position in the region
thanks to new contracts. One example is Panalpina’s
freight forwarding contract for a project to lay a 150-kilometer
pipeline for an oil and gas extraction facility in Santos
Basin (Brazil). The discovery of huge oil fields off the coast
of Brazil, and the ensuing investment in infrastructure in
order to exploit them, gives the company cause for optimism.
Sports events set to boost the economy
Rio de Janeiro will host the 2014 FIFA World Cup, and
then the summer Olympics two years later. These prestigious
sports events present a considerable challenge for
the Brazilian government. The World Cup and the Olympic
Games can be expected to accelerate the expansion of
the country’s infrastructure, boosting demand for forwarding
and logistics services.
Stronger presence in domestic market
With its population of nearly 200 million, Brazil has an
enormous domestic market. Panalpina intends to
increase its presence in the domestic air freight market,
which has hitherto been dominated by local firms.
Panalpina Annual Report 2009
29

30
Reporting Regions
Asia Pacific
Process optimization, cost reduction and new business
New contracts in the telecom and healthcare sectors show that Panalpina is able to
hold its own, even when market conditions are difficult. In the current economic situation,
Panalpina believes that new opportunities will be found through developing new
services and products tailored to the market, which is why the Group is investing in
a new service center in China.
Areas: 5
India, East Asia, Southeast Asia,
Greater China, Oceania
Net revenue: CHF 891 million
Headcount: 2,806
While most countries of the world have had to battle against
the impact of the financial and economic crisis over the
past twelve months, China was able to avoid a recession
and even grow slightly – mainly thanks to government
stimulus measures and tax cuts. Nevertheless, the world’s
third-largest economy did not escape the global crisis
unscathed. Year-on-year, Chinese foreign trade shrank by
around a quarter in the first half of 2009. Exports declined
by at least 20%, primarily because of lower demand from
the country’s biggest trading partners: the EU, the USA,
Japan and the members of ASEAN (Association of Southeast
Asian Nations). Strong domestic demand and consumer
spending also helped the Chinese economy grow.
China – Taiwan: more direct links – higher freight volumes
Relations between China and Taiwan are continuing to ease:
several freight and passenger flights now cross the strait
between China and Taiwan daily, and numerous ports and
airports have opened up to direct traffic between the two
countries. Freight volumes have risen steadily since the
direct connections were launched in mid-December 2008.
Further increases are expected in the future.
Panalpina Annual Report 2009
Supply Chain Management: focus on developing
new solutions
In times of crisis, many companies review their supply chains
and logistics arrangements. This means that numerous
new opportunities are opening up for Panalpina. The Group
intends to strengthen its position in this business segment,
so it is focusing on the development of new products and
services tailored to the market. Sizeable contracts have
been concluded in the telecom and healthcare sectors.
Air freight bottlenecks from the third quarter onwards
In recent years, the high season that traditionally begins
at the end of the third quarter has failed to occur, and this
situation prompted carriers to withdraw freight capacity
from the market in the course of the reporting year. A rise
in demand led to some bottlenecks from the third quarter
onwards.
New centralized services center opens in Wuhan
In 2009, Panalpina set up a new centralized services
center in Wuhan, capital of Hubei province in central China.
The center’s immediate task is to optimize internal processes,
thus helping to reduce the Group’s cost base.
At some point in the future, Panalpina plans to set up an
independent subsidiary in Wuhan. The reason for this
decision is the favorable location of the city, which is about
halfway between Beijing and Shanghai and has a population
of eight million. It is a major transport hub and a center
of industry, trade and finance. Many international firms
and hi-tech companies have established offices there. In
addition, Panalpina intends to work closely with the many
universities in Wuhan and the surrounding area. The Group
hopes to enable new graduates to build a career in the
logistics sector.

Japan, Thailand, Vietnam and the Philippines
The recession prevented the growth targets for Japan,
Thailand, Vietnam and the Philippines being achieved.
Forwarding volumes were hit by the downturn, with both
air and ocean freight suffering. Furthermore, expectations
were not met in the key Automotive, Hi-tech, and Retail
and Fashion industries.
Panalpina noted a positive trend in the oil and gas and
supply chain management segments. The Group therefore
intends to focus more on these areas in the future. It has
succeeded in gaining market share in Vietnam, for example,
and has opened a satellite office in Vung Tauin in the south
of the country, since this is an important hub for oil and gas.
Panalpina is paying careful attention to supply chain
management in Japan, where it has seen a rise in demand
in the retail and fashion sector.
Independently run subsidiaries in Japan
Japan was significantly affected by the financial and economic
crisis, and the deep recession also hit Panalpina’s
business activities. The Group was not able to meet its
growth targets for 2009. It is nevertheless gratifying to note
that Panalpina, which this year celebrated the 40th anniversary
of its arrival in Japan, was able to outperform the
market, especially in the air freight segment.
In November, Panalpina relinquished its status as a commercial
delegation and began functioning as an independent
operational business. Existing and future customers
will be offered an even wider range of services by the
95 staff employed in Tokyo, Osaka, Narita, Nagoya and
Fukuoka, and the entire air and ocean freight business will
be run in-house.
India
The crisis did not have a particularly big impact on the
Indian economy. This was partly owing to the country’s
massive domestic market, which, up to a point, makes the
Indian economy independent of global demand. Indian
companies responded to the global situation by cutting their
inventories, and this had a knock-on effect on freight
volumes. However, Panalpina India can look back on a
successful year.
Australia and New Zealand
Reporting Regions
A leading technology and service company active in the
field of vehicle and industrial engineering has entrusted
Panalpina with its entire air freight business from and to
Australia and New Zealand for the next two years. This
amounts to around 3,000 tonnes annually. When awarding
the tender, this customer singled out Panalpina’s outstanding
supply chain focus for special notice.
Expansion in the Asia Pacific region
Panalpina opened a new distribution and logistics center in
Singapore in spring 2009. The complex has a total area
of 11,277 square meters and includes warehousing as well
as various forms of office space. The warehouse covers
8,546 square metres and has been designed to meet a
variety of customer requirements. Its up-to-date facilities
provide ideal storage conditions and ensure smooth goods
handling. Designed with customer requirements in mind,
it functions as a distribution center for goods from all the
key industries, especially the Healthcare and Chemicals,
Hi-tech and Telecom sectors. The newly opened office and
warehouse building is very close to the international airport.
The center’s easy accessibility via major transport
routes also complements the existing air and ocean freight
offices and Panalpina’s other logistics sites. This will allow
Panalpina to expand its range of services throughout the
Asia Pacific region.
By opening a subsidiary in Ho Chi Minh City, Panalpina is
sending a clear signal about its forward-looking growth
strategy. Today, Panalpina employs some 70 people in Ho
Chi Minh City, Hanoi, Haiphong, Da Nang and Qui Nhon.
In Shah Alam, Malaysia, Panalpina has moved into new,
larger premises near Subang Airport. The new branch office
is strategically located and its product range is designed
to cater to the growth potential in Malaysia.
Panalpina Annual Report 2009
31

Core Activities

34
Core Activities
Air Freight
Panalpina reacts flexibly to the crisis in the global air
freight market
The economic crisis caused an unprecedented drop in volumes in the global air freight
market. Panalpina reacted to the challenging market environment with flexibility and
the further development of proven products, including adjusting the relative proportions
of the capacity purchased on the open market and that chartered by the Company
itself. Volumes totaled 731,000 tons.
The main features of 2009 were the biggest-ever fall in
volumes on all major trade routes, a price war, and highly
volatile freight rates. Panalpina’s strong presence in
the badly hit Automotive, Hi-tech and Telecom segments
meant that its air freight business was worse affected
by declining volumes than the overall market. However, the
Company was able to increase volumes from quarter to
quarter. Panalpina was successful in gaining market share
on the trans-Pacific route.
Panalpina reacted promptly to exceptionally volatile freight
rates. Having seen rates plummet in the third quarter of
2008, the airlines tried to raise prices again from the third
quarter of 2009 onwards. However, adjusting capacity
to match the reduced demand was a largely unachievable
goal as new cargo aircraft were delivered. The uncertainty
about freight rates led Panalpina to adjust the relative
proportions of the capacity purchased on the open market
and that chartered by the company itself.
New agreement with Atlas Air
Effective capacity management has a significant role to play
when coping with falling volumes. Up until autumn 2008,
Panalpina procured around 70% of its capacity on the spot
market, another 25% through medium-term commitments
(blocked space agreements) and 5% by means of longterm
charter agreements within its “own controlled” network.
The crisis prompted Panalpina to change these proportions
and place greater weight on short-term capacity procurement.
Meanwhile, the longstanding cooperation agreement
with air freight company Atlas Air was renewed. This cooperation
allows Panalpina to offer own-controlled capacity
between Europe, North America and Mexico, and to link
its Oil and Gas hubs. A thorough analysis had already clearly
shown that the service could be run in a commercially successful
manner and that there was considerable customer
demand for it. The capacities of this service, known as the
“Dixie Jet,” are marketed and supplied by Panalpina, while
Panalpina Annual Report 2009
the Boeing 747-400F cargo aircraft is operated by Atlas
Air. This service offers regular flights between the air
freight hubs in Luxembourg and Huntsville /AL. It has been
well received by the market and generates clear added
value for customers. There are five frequencies a week
serving the southern, south-eastern and central regions of
the USA. From Luxembourg, Panalpina also operates and
controls a connection service to West Africa, which links
up with the company’s main Oil and Gas hubs in Houston,
Aberdeen, Moerdijk (Netherlands) and West Africa. Customers
in the Oil and Gas segment benefit in particular,
but the service is also useful for companies in the Hi-tech,
Healthcare and Chemicals and Automotive industries.
Cold-storage facilities for pharmaceutical products have
been opened in Luxembourg and Huntsville, enabling a
seamless door-to-door cold chain to be provided. In 2009,
Panalpina was awarded the important status of “Qualified
Envirotainer Provider” by its partner Envirotainer, with whom
the company cooperates to provide seamless cold chains.
New services to Dubai and India and rapid adjustment
to the markets
High importance is attached to consolidating air freight
flows through the hubs and gateways. The Panalpina air
freight network relies heavily on two hubs in Luxembourg
and Dubai. While regular flights connect Luxembourg
with North and South America, Dubai acts as the hub for
shipments to the Middle East and Africa. In November,
Panalpina added a new service to its product portfolio
using its own capacities: from Liège (Belgium) to Dubai and
onwards to Chennai (India). The aircraft then flies from
Chennai to Africa. These services can be set up quickly and
discontinued just as rapidly if the market situation alters.
www.panalpina.com/air

Ocean Freight
Panalpina makes strategic changes
Core Activities
2009 was a difficult year for the international ocean freight business. Most shipping
lines and carriers were hit by wildly fluctuating freight rates, changing transport
capacity, and declining volumes. Panalpina was nevertheless able to retain a strong
market position with 1,103,000 transported TEUs.
Two years ago, many large new container ships were still
being brought into service and demand for shipping capacity
seemed to be growing apace. A very different picture
emerged in 2009: forwarding volumes declined rapidly while
shipping lines fought over consignments on all the major
trade lanes as they attempted to fill their ships. As a result,
freight rates came under pressure and rapidly fell to unsustainable
levels. As the year went on, the carriers tried to
make up for this by withdrawing capacity from the market
on all the major routes, thus pushing prices up. Rates tripled
or even quadrupled between spring and autumn, especially
on the trade lane from the Far East to Europe. Such
volatility made it particularly difficult to plan for the medium
to long term. Flexibility was needed, not only to gain new
customers but also to generate profit margins. The financial
situation led some companies to switch some of their
shipments from air to ocean, although this did not have a
lasting impact on the number of containers being forwarded.
An out-and-out price war was unleashed in the forwarding
market, with some firms offering their services at less than
cost price.
Volumes were soberingly low compared with the previous
year. Key industries such as the Automotive, Hi-tech and
Telecom sectors cut production massively, which had a big
knock-on effect on Panalpina. The company was nevertheless
able to increase volumes during the course of the
reporting year. In the second half of the year, Panalpina
gained market share on the important ocean freight route
between Asia and Europe.
Clear sales strategy
Panalpina refocused its global sales organization. A steep
decline in orders from former growth sectors led Panalpina
to concentrate more of its sales efforts on alternative industry
groups, and to conclude new business deals with many
small and medium-sized companies, too. Although the
new business was not able to compensate for the decline
in orders from major corporations, a solid basis for future
progress has nevertheless been established. One of the
new contracts was with a leading food trading company,
which sends consignments from Latin America to Europe,
the Middle East, Africa and Asia. New agreements to forward
goods from China and the USA to the Netherlands
were concluded with a long-established customer in the
hi-tech segment, and a well-known sports equipment manufacturer
appointed Panalpina as its NVOCC (Non Vessel
Operating Common Carrier). This contract involves freight
volumes of more than 20,000 TEUs. Panalpina also won
further ocean freight business from a cosmetics company
and a computer manufacturer.
Demand for LCL shipments stable
Demand for LCL (less than container load) ocean shipments
remained high in 2009, as in the previous year.
Panalpina opened a new hub at Jebel Ali, the port of Dubai,
to connect the global LCL network with the Middle East
and East Africa. All in all, more than 20 new consolidated
shipment services were introduced in 2009. These include
services between India and Germany, Singapore and Vietnam/Malaysia,
China and the Czech Republic, and China
and the west coast of America. Other services from Asia
linked up with Canada, the United Arab Emirates, Austria,
Romania, Australia, Hungary and Colombia. Panalpina
has established itself firmly in the LCL market and is set to
continue expanding its position steadily.
www.panalpina.com/ocean
Panalpina Annual Report 2009
35

Supply Chain Management
Supply Chain Management wins profitable new contracts
A study supported by Panalpina shows that there is still excellent growth potential
for outsourcing and comprehensive supply chain management (SCM) solutions.
Panalpina further strengthened its internal SCM organization in 2009 and was able
to win profitable new contracts.
Panalpina supported the fourteenth “Annual Third-Party
Logistics Study,” which was carried out in mid-2009 and
published in September. This survey examines how the
market for third-party logistics (3PL) and logistics services
is developing, and investigates the central issues affecting
the industry. The 2009 study was even more significant
than usual because of the challenging economic situation.
Customers are confronted with unpredictable trends, very
volatile fuel prices, fluctuating currencies, high inventories
and a changing labor market in many places formerly
regarded as low-wage countries. They are also experiencing
enormous pressure on costs. For these reasons, many
companies are reviewing their logistics arrangements and
Panalpina Annual Report 2009
supply chains with the aim of making them more flexible
and cost-effective. This makes it a good time to negotiate
new arrangements with their providers. The study shows
that there is therefore considerable growth potential in the
SCM market, which more than justifies investment spending.
The study’s findings also clearly indicate the great importance
that customers attach to their logistics providers’
IT systems, since in many cases there is significant room
for improvement in this area. Panalpina has constantly
expanded and optimized its IT network in recent years and
has designed many innovative solutions: in the year under
review, for example, the company launched the Supply
Chain Diagnostics Tool which was developed in-house.

Supply Chain Diagnostics Tool
The Supply Chain Diagnostics Tool identifies potential savings
and optimization opportunities in the supply chains
of Panalpina’s customers. The supply chain is then reconfigured
to take account of these findings, with costs,
service levels and sustainability being fine-tuned. Supply
chain costs can be calculated using the Supply Chain
Diagnostics Tool, whether they are direct (forwarding, warehousing,
administration) or indirect (inventory costs, depreciation
of goods, opportunity costs). Panalpina can thus
offer a simplified process that is much faster and no less
accurate: using a representative product and its entire
supply chain, the tool works out the optimization potential
available throughout the company for all its products. The
Supply Chain Diagnostics Tool is particularly appropriate
for industries with a special interest in continually optimizing
their production and supply chains because of the
fast-moving and volatile nature of the markets in which
they operate.
Close cooperation within the Group
Supply chain management requires teamwork within the
Group. As a result, numerous projects developed within
the supply chain community were implemented during the
reporting year. In addition to the core SCM team at head
office and in the national organizations, this community
includes Marketing and Sales, Global Accounts, Industry
Verticals, Operations, Business Processes and Quality
(BPQ), Finance, Global Tender Management and of course
the IT specialists. Supply chain management affects
nearly all departments within the organization and everyone
involved has to contribute to the development of optimal
customer solutions while also ensuring that their expertise
is shared and made available to the Group as a whole.
New business throughout the world
Core Activities
Many SCM contracts were concluded during the reporting
year, the foremost being with the Sigma-Aldrich corporation.
Panalpina had already been chosen as Sigma-Aldrich’s
main logistics provider in 2008, but the relationship was
significantly expanded in 2009, including in Chile, China and
Germany. Panalpina signed further significant SCM contracts
with customers from a variety of industries in Poland,
the USA, Italy, India and West Africa, among others.
Panalpina is aiming for an even
stronger global position as a leading
provider of complete supply
chain management solutions.
www.panalpina.com/scm
Panalpina Annual Report 2009
37

Customer Groups

40
Telecom
The growing importance of being connected anytime and
anywhere by means of mobile high-bandwidth services,
video commu nication, as well as media-driven entertain-
ment have been stimulating significant investments in wire-
less telecom infra structure across developed countries –
and will con tinue to do so. At the same time, in developing
and emerging markets mobile subscriptions are added in
the millions on a daily basis, thus also driving basic mobile
infrastructure investments as well as sales of end devices.
All of this makes for an extremely dynamic market and one
of Panalpina’s key industries. The diverse requirements
of Panalpina’s telecom customers – which include many of
Panalpina Annual Report 2009
the world market leaders in this sector – range from global
forwarding and logistics solutions for the manufacture
and distribution of premium fast-moving consumer goods
to complex transport projects for the construction of
large-scale mobile communications infrastructure covering
extensive and sometimes remote areas. Panalpina has
industry-specific competence centers at its disposal, particularly
in the key strategic markets of Scandinavia, South
Africa, Brazil, India and China.

Customer case Alcatel-Lucent
The customer
Alcatel-Lucent, listed in Paris and New York, is the trusted
partner of service providers, enterprises and governments
worldwide, providing solutions to deliver voice, data and
video communication services to end-users. A leader in
fixed, mobile and converged broadband networking, IP technologies,
applications and services, Alcatel-Lucent leverages
the unrivaled technical and scientific expertise of
Bell Labs, one of the largest innovation powerhouses in the
communications industry. With operations in more than
130 countries and the most experienced global services
organization in the industry, Alcatel-Lucent is a local partner
with a global reach. Alcatel-Lucent achieved revenues
of EUR 15.16 billion in 2009 and is incorporated in France,
with executive offices located in Paris.
The challenge
The recently created Alcatel-Lucent branch in Mexico was
the result of the merging of two well-known organizations
in the telecom industry. In the process both companies
needed to align their cultures and optimize their operations.
It was defined this optimization would be achieved through
asset reduction, inventory accuracy, head count reduction,
changing fixed costs to variable costs, and using best
practices in the market. To this end, Alcatel-Lucent started
their search for a logistics partner that would be able to
bring them the innovation needed to succeed in the competitive
telecom industry environment.
The solution
Customer Groups
Panalpina Mexico has been entrusted by Alcatel-Lucent to
handle material in and out of their Tres Rios warehouse in
the northern suburbs of Mexico City. Operations include
receiving shipments at the warehouse, segregating inbound
shipments into separate sales order/purchase order groups
when allocated, and into separate code groups anonymous
stock, scanning barcode information or entering information
into the warehouse management systems and issuing
warehouse receipts when material is received, placing
material into and removing material from storage, packing,
marking, tagging and stenciling when required, loading
and unloading of vehicles when it is the shipper’s or consignee’s
obligation to perform these functions, preparing
shipping documents when required, issuing delivery
receipts and tendering material for delivery. Panalpina also
performs a variety of quality inspections and prepares the
corresponding reports.
“Within a market as competitive and complex as telecom, I consider two factors as key
to better serve our customers: flexibility and fast execution. This is where Panalpina
has been a true logistics strategic partner to us, accommodating our ever-changing needs
and requirements, providing extensive support and rapid response to meet deadlines.”
Jorge De León, Logistics Senior Manager, Alcatel-Lucent Mexico Cluster
Panalpina Annual Report 2009
41

42
Hi-tech
Within the hi-tech segment, Panalpina’s global reach and
industry competence ensures complete supply chain integration
and management. The spread of new technologies
– in particular the universally growing broadband and
mobile coverage – has inevitably led to shorter product life
cycles. These, in turn, require more complex and sophisticated
transportation and supply chain services. Typically,
the hi-tech industry needs logistics chains linking the industry’s
key production sites with distribution operations in
the rest of the world. With its global presence and industry
know-how, Panalpina is able to meet the needs of hi-tech
industry customers. It offers them not only transport services
ensuring the timely delivery of parts and products
(a growing portion of which is being shifted from air to
ocean freight, with considerable cost benefits), but also
Panalpina Annual Report 2009
integrated Supply Chain Management solutions. These
range from full order management services, to VMI (vendor
managed inventory) inbound operations, to warehousing
and outbound distribution, with TAPA (Technology Asset
Protection Association) certification for Panalpina-operated
warehouses and logistics centers. This fast-moving market
continues to be characterized by technological innovations
and a backlog of demand in the world’s emerging markets.
The latter are rapidly catching up with developed countries’
consumer habits, thus at least partially offsetting the
very challenging economic environment.

Customer case Lenovo
The customer
Lenovo is dedicated to building exceptionally engineered
PCs. Its business model is built on innovation, operational
efficiency and customer satisfaction as well as a focus on
investment in emerging markets. Formed by Lenovo Group’s
acquisition of the former IBM Personal Computing Division,
the company develops, manufactures and markets reliable,
high-quality, secure and easy-to-use technology products
and services worldwide. Lenovo has approximately
21,000 employees worldwide, is operating in more than
60 countries and has major research centers in Japan,
China and the USA. Revenues in 2008/2009 fiscal year
amounted to USD 14.9 billion.
The challenge
As one of the major players in the highly competitive PC
market, Lenovo is facing multiple logistic challenges: short
end-to-end transit times of direct deliveries to distribution
partners and customers in a number of EMEA countries,
management of customs clearance, communication focal
points, as well as full visibility and transparency with end-toend
web tracking. More specifically, the target transit time
from pick-up point in Asia to destination in EMEA including
customs clearance is five days. As a consequence, clear
mappings need to be established in order to meet the exact
serviceability requirements. Transparent pricing including
pick-up, air freight and destination processes are required
to facilitate financial planning. Finally, special security
requirements have to be set up in order to protect Lenovo’s
high-value cargo from damage and theft.
The solution
Customer Groups
Lenovo’s cargo is consolidated by Panalpina in Shenzhen
and Shanghai, China, where the company’s manufacturing
base is located, and is subsequently shipped to Frankfurt,
Germany, by air. Frankfurt is used as a central gateway
to the European Union and Eastern European countries for
customs clearance and handover to a final-mile delivery
partner. Since the network is designed to manage shipments
from a single package level up to full truckloads it
requires a lot of coordination. Therefore, dedicated control
towers have been set up in Frankfurt and Hong Kong to
allow for the execution of the planning process. Moving
directly from factory to customer, cargo does not need to
transit through a warehouse which reduces handling and
thus saves process time and costs. In addition, consolidation
programs both at origin and destination further reduce
costs. End-to-end visibility is achieved by involving unique
partners and special IT programs.
“This is a good example of how Panalpina, a strategic global partner, has created an
innovative solution based on Lenovo’s specific needs to drive productivity improvements
throughout our supply chain. As our logistics network evolves, Panalpina continues
to focus on productivity improvements to reduce cost, time and handling, thus allowing
us to increase customer satisfaction while additionally reducing our supply chain costs.”
Josh Skeen, Global Provider Manager, Lenovo
Panalpina Annual Report 2009
43

44
Automotive
Panalpina provides its automotive customers with transportation
and logistics services that enable them to optimize
their supply chains, to meet tighter production schedules
and to operate on the basis of lean inventory management.
The automotive industry’s just-in-sequence and just-in-time
supply systems, where the delivery of components from
numerous companies in different countries must be carefully
coordinated to ensure a smooth manufacturing and
assembly process, pose a particular challenge. This requires
expertise in information design, process planning and
operations efficiency. Panalpina’s services aim to deliver
quality solutions at the lowest possible cost and yet with
Panalpina Annual Report 2009
the flexibility demanded by the world’s leading vehicle manufacturers
and their suppliers. To ensure the proper functioning
of such complex supply chains, the Group develops
and implements fine-tuned supply chain solutions with
integrated air and ocean freight services for the automotive
industry. It also offers these companies comprehensive
service packages for the operation of distribution centers
and warehouses, thus optimizing the customers’ supply
processes and data transfer.

Customer case Schaeffler
The customer
The Schaeffler Group with its brands INA, FAG and LuK
is a leading manufacturer of rolling bearings and linear
products as well as a renowned supplier to the automotive
industry of high-precision products and systems for
engines, transmissions and chassis applications. The group
of companies stands for exceptional customer focus,
innovative ability and the highest possible level of quality.
Approximately 61,000 employees at over 180 locations
in more than 50 countries worldwide generated sales of
EUR 7.3 billion in 2009. This makes the Schaeffler Group
one of the largest German and European industrial companies
in family ownership.
The challenge
Schaeffler was searching for a reliable partner to manage
their ocean freight traffic from Europe to Asia and Australia
as well as their FOB (free on board) deliveries to the north
continent ports. Schaeffler has numerous production sites
as well as customers in Asia Pacific and these are procuring
material from over 100 Schaeffler plants and suppliers
in Europe. This complex setup presents the company with
numerous challenges involving supply chain visibility, standardization,
efficiency and freight costs. Schaeffler’s main
goal was to engineer an intelligent European consolidation
concept that would address all of the aforementioned
issues. The service provider would also get involved in
continuous improvement programs.
The solution
Customer Groups
A central control tower was set up at Panalpina in Nuremberg
which allows Schaeffler easy communication through
one single point of contact. The freight itself is being consolidated
at the very best point: the Panalpina Automotive
Hub in Hamburg, Germany. All the cargo from the European
suppliers is consolidated using an existing and well-established
transportation network and a swap body concept
provided there is enough volume. This allows Schaeffler to
reduce trucking and freight handling in their European
plants as well as reduce costs in their supply chain. Across
the entire supply chain, Panalpina provides in-transit reports
as well as document visibility through its track & trace system
Intrac. An EDI connection allows data feedback with
delay coding on shipment level. Schaeffler and Panalpina
are working toward a completely paperless operation.
Regular performance review meetings allow both parties to
improve and better align their processes. A continuous
improvement program has been set up through 8D-Reporting.
This improvement in visibility combined with standardized
processes and simplified communication results in
optimized pre-carriage schedules, leaner transport cycles
and reduced inventory.
“This new partnership has been established with the intention to blend the Schaeffler
goal of continuous efficiency improvements with Panalpina’s efforts to optimize
transportation flows and transparency across the entire Schaeffler supply chain.”
Guenter Gumboldt, Director Global Provider Management, Schaeffler Group
Panalpina Annual Report 2009
45

46
Customer Groups
Healthcare and Chemicals
For its customers in the healthcare sector, Panalpina pro-
vides just-in-time delivery to global destinations and bestin-class
forwarding services that safeguard the integrity of
pharmaceutical products throughout the entire supply chain.
The healthcare industry is facing increasing pressure to
grow profits by bringing new products to the market faster
and more efficiently while delivering affordable healthcare.
Moreover, the investment in Research and Development
has given rise to more sophisticated and high-value biotech
products with increasingly complex transportation and
security requirements. These developments have no doubt
contributed to the rising logistics and transportation cost.
Panalpina considers this to be an interesting business
opportunity, not least because the growing prosperity in
Panalpina Annual Report 2009
the developing economies is boosting per capita spending
on healthcare to satisfy the increasing demand for quality.
Panalpina offers flexible forwarding and logistics solutions
by giving customers a choice of transportation mode – air
freight, ocean freight or road services – depending on
urgency and consignment size. Panalpina also offers valueadded
services such as order confirmation, consignment
documentation and forwarding procedures that meet the
industry’s hygiene, temperature and humidity requirements
through the entire supply chain.

Customer case ResMed
The customer
ResMed was formed in 1989 with the primary purpose to
commercialize a device for treating obstructive sleep apnea
(OSA), a major subset of sleep-disordered breathing (SDB).
Today the company is listed at the New York Stock Exchange
and the Australian Securities Exchange and has become a
leading developer, manufacturer and marketer of products
for the screening, treatment and long-term management of
SDB and other respiratory disorders. Every year approximately
6% of revenues are invested in research and product
development. ResMed operates in over 68 countries via
18 direct offices and a network of distributors with extensive
knowledge and experience of local markets. Its team of
over 2000 people based around the globe is working to
help the millions of people suffering from SDB and other
respiratory disorders.
The challenge
To support the Australian and Singapore manufacturing
facilities, ResMed source raw product globally within
a lean management environment. Standardization, best
practice solutions, efficiency and stable cost management
are required to support their product suite and new
model releases that are distributed to the market worldwide.
The geographical location in Australia also presents
a logistics challenge to support time to market within an
increasingly volatile carrier market.
The solution
Customer Groups
Panalpina supports ResMed’s logistics in two dozen local
organizations on four continents and with a wide array of
services. The two partners have come a long way in a very
short time: It all started in September 2007 when Panalpina
was awarded a two month trial of air freight export from
Sydney to the USA In March 2008, Panalpina was among
a group of service providers invited to RFQ and subsequent
tender on a new logistics warehouse in Singapore to
support ResMed’s newly created manufacturing facility
to support the company’s ongoing growth. Panalpina was
awarded the international air and ocean freight into and
out of Australia, customs brokerage worldwide, the Singapore
logistics warehousing, the international air and ocean
freight into and out of Singapore, the ResMed third-party
suppliers world wide into Singapore and intra-Asia cross
traffic to support new product lines, the international air
and ocean freight from Asia to North America to support
the ResMed Motor Technology business as well as traffic
to India where ResMed had just established their local
operation in 2009.
“We were looking for a global service provider who takes initiative and continuously
seeks improvements, for example by changing routing or minimizing lead times.
With Panalpina we have developed strong relationships within all levels of the business
in all locations within our supply chain.”
Graeme Scott, Global Director of Logistics, ResMed
Panalpina Annual Report 2009
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48
Customer Groups
Retail and Fashion
The complexity, IT dependency and globalization of the
Retail and Fashion industries are increasing steadily. The
evolution of supply chains, at SKU (stock-keeping unit) level
with shorter product life spans, plus the need for increased
security and green supply chains add to the complexity.
Panalpina’s Retail and Fashion vertical focus is on fashion,
retail, FMCG (fast moving consumer goods), personal care
and home goods. Panalpina collaborates with its customers
to provide end-to-end solutions that deliver cost-saving
and value-adding benefits. Panalpina’s dedicated Retail
and Fashion industry specialists have extensive experience
and in-depth industry know-how in supply chain design,
implementation and execution. This gives its customers
access to best-in-class added-value solutions. Panalpina’s
people are strategically located in key areas around the
world, depending on customer requirements. Delivering
Panalpina Annual Report 2009
operational excellence across Air Freight, Ocean Freight
and Supply Chain Management is the essence of the way
Panalpina does business. Utilizing leading-edge technology,
Panalpina’s IT platforms provide intelligent tools to
manage end-to-end processes, including real time, scheduled
and exception reporting driven by an array of mutually
agreed value-added key performance indicators. Many
of the world’s leading fashion and retail companies recognize
Panalpina as a first-class logistics service provider
because of its dedicated, experienced and passionate employees,
its global network and the value and flexibility of
the solutions it delivers.

Customer case Manor
The customer
Manor is Switzerland’s biggest and most successful
department-store chain. The Manor Group extends to the
71 Manor stores employing some 11,300 personnel, the
Athleticum sports goods chain and Switzerland’s FLY furniture
shops. The Group, which is owned by Geneva-based
Maus Frères Holding, generated total sales of CHF 3.35
billion in 2009. With an estimated share of over 60%, Manor
is the market leader in the Swiss department-store segment.
“Donnons du style à la vie” – “Let’s give life some
style” – is the brand promise with which Manor strives to
stand out from its competitors, by maintaining a firm focus
on lifestyle and value for money and offering an everchanging
range of fashionable items to delight and inspire
its customers.
The challenge
Manor sources 750,000 food and non-food product lines
from 6,500 different suppliers located all around the world,
and a significant part of it from overseas, for example from
the People’s Republic of China. Textiles, household goods,
furnishings and other products are produced at several
sites in the Shanghai area and around the Pearl River Delta.
Within a saturated and highly competitive market such as
the Swiss retail trade, the rapidly changing product lines
create fast dynamics, which have to be managed with a
state-of-the-art supply chain. Manor aims to keep processing
time in Switzerland to a minimum and therefore allow
for significant time and cost savings. Smooth communication
processes between Manor and its logistics service
providers require seamless IT integration. In addition, environmental
considerations also have to be taken into account.
The solution
Customer Groups
Manor and Panalpina have devised an integrated solution
that gives Manor the commercial flexibility to successfully
compete in the dynamic retail business. Panalpina first
brings the different products together on a consolidation
platform, where they are subjected to a number of checks:
Are the necessary commercial documents available?
Have the goods been correctly packed and tagged by the
supplier? Are there any signs of external damage to the
boxes? Are the goods undamaged? In order to verify this,
Panalpina opens every tenth box on the spot and in case
of a new supplier even every single box. Goods that arrive
ahead of schedule are temporarily stored in the consolidation
platform in order to guarantee just-in-time delivery
in accordance with Manor’s operational excellence philosophy.
All boxes are pre-tagged with the barcode of the
Manor branch they are destined for and containers are
loaded according to instructions from Manor’s distribution
center. Regarding the transport, Panalpina offers various
different packages (ocean, air and rail) that Manor can
adjust according to their specific processing time and cost
requirements. Panalpina is bound to use the containers
to full capacity, which reduces the impact on the environment
as well as total transportation costs. Standardized
EDI notifications allow for smooth information exchange
between Manor and Panalpina.
“We believe that Panalpina shares the same service values as Manor. They know what we
need to keep our customers happy, we speak the same language. Other key success factors
in the retail business are innovation and proactive behavior. The partners in our supply chain
have to comply with these requirements, which Panalpina does.”
Rainer Deutschmann, Director Supply Chain Management, Manor AG
Panalpina Annual Report 2009
49

50
Customer Groups
Oil and Gas
With over four decades’ experience in the oil and gas
industry, Panalpina is the recognized market leader
with a special focus on serving the highly demanding upstream
part of the business (exploration and production).
The entire value chain in exploration and production consists
of various cycles that all have the same end goal but
require a variety of different supply chain solutions. Rather
than homogenous containerized cargo shipped within the
known consumer goods trade lanes, requirements range
from sizeable capital equipment, rig components, subsea
installations, pipes, associated chemicals, electronic equipment
and consumables – all of which have to be moved
to places as remote as the Siberian tundra or to odd shore
bases along the West African coast. Yet the requirements
do not stop at moving freight and transmitting information.
Panalpina Annual Report 2009
In deep water, ship agency-related demands become an
integral part of the upstream value chain: attending to
floating installations, supply and service boats, people
transfers, as well as board and lodging services.
Panalpina’s leading market position is built on sturdy pillars
that include a strong commitment to the industry, a global
network covering the horizontal industry axis (Houston,
Aberdeen, Singapore), a presence in all major oil and gas
exploration and production sites around the world, a dedicated
management structure with profound industry and
mate rials know-how, logistic solutions that comply with the
industry’s high HSE and compliance standards, and of
course customer recognition as being among the industry’s
best of the best.

Customer case KCA DEUTAG
The customer
KCA DEUTAG, a wholly owned subsidiary of Abbot Group
Ltd, has a history of over 100 years of drilling and engineering
activities across the globe, and undertakes projects
in some of the most demanding corners of the world,
including the deserts of the Middle East and North Africa,
arctic Siberia and Kazakhstan, tropical regions, and the
challenging offshore conditions in the North Sea and offshore
Sak halin Island, far Eastern Russia. Headquartered
in Aberdeen, Scotland, KCA DEUTAG employs over
8,000 people and operates in over 20 countries worldwide,
managing more than 100 drilling and work-over rigs,
over 30 offshore platforms in the North Sea, Caspian Sea,
in Angola and Sakhalin.
The challenge
KCA DEUTAG is committed to constantly reviewing and
improving its business performance to ensure that it is both
effective and efficient and continues to meet the needs of
its clients. Naturally, the Global Supply Management (GSM)
function plays a key role in this and regularly undertakes
reviews of its suppliers to ensure that KCA DEUTAG’s
requirements are met. The consequences of underperformance
in the drilling business are especially severe and
the sector is strongly focused on eliminating non-productive
time (NPT) from its operations. The role of logistics
providers in this is highly significant and particularly challenging.
KCA DEUTAG selects its suppliers according to
how competitive they are and how capable they are in
meeting the given requirements. In this case, a strong focus
Customer Groups
on efficiency and ability to deliver door-to-door service
was vital. In keeping with the company’s focus on business
improvement, KCA DEUTAG sees the foundation of its
relationships with logistics providers as being based on
measurable performance.
The solution
Panalpina’s tender response contained the offer to assist
in supply chain optimization as to identify further cost
efficiency possibilities. This approach would support KCA
DEUTAG’s intentions for improvement projects covering
inventory alignment, RFID (radio frequency identification)
and training. Panalpina has been awarded additional business
in the key regions of Africa and Central Asia over the
period of the next three years. The decision – representing
the retention of both key current business and the award
of new business activity – strongly increases Panalpina’s
overall commercial relationship with KCA DEUTAG. The
foundation of this existing strong and successful partnership
with KCA DEUTAG is the application of integrated key
account management principals.
“Panalpina’s approach to supply chain optimization, inventory alignment and risk
management fits with our own intention to bring greater visibility and efficiency to this
area of the business. Our aim is always on meeting the needs of our business and,
in turn, the needs of our clients. We believe that the service supplied by Panalpina will
play a significant role in meeting these needs.”
Alistair McGregor, Global Procurement and Supply Chain Manager, KCA DEUTAG
Panalpina Annual Report 2009
51

52
Industrial Projects
The construction of industrial plants and large infrastructure
projects as well as the manufacturing of oversized equipment
and modules presents highly challenging and complex
transport logistics problems that often involve the transportation
of very heavy and oversized loads.
Panalpina’s dedicated project competence center, Panprojects,
is based in Bremen, Germany, and employs some
300 specialists at 44 strategic locations around the world.
They develop transportation solutions that are tailor-made
for each project and allow fast and secure shipment of
plant parts as well as bulky and oversized goods for a great
variety of projects.
Panalpina Annual Report 2009
Panprojects provides its services mainly to companies
involved in constructing refineries, LNG and petrochemical
plants, mining emplacements or extensions, and power
plants, and is working directly for suppliers of other industrial
plants, heavy and oversized equipment and modules.

Customer case Uhde
The customer
Founded in 1921, today Uhde is part of the Plant Technology
business area of the ThyssenKrupp Group. With more
than 2,000 plants to its credit, it is one of the world’s leading
engineering companies in the design and construction
of chemical, refining and other industrial plants. Uhde has
subsidiaries and associates in all four corners of the globe.
This worldwide network, with over 4,900 employees, is
active in a number of different fields: fertilizers, electrolysis,
gas technologies, oil, coal and residue gasification, refining
technologies, organic intermediates, polymers and synthetic
fibers as well as coke plant and high-pressure technologies.
Uhde offers their customers not only cost-effective
high-tech solutions in industrial plant construction and
the entire range of services associated with an EPC (engineering,
procurement, construction) contractor but also
provides comprehensive service packages for the entire
life cycle of their plants.
The challenge
Egyptian Propylene & Polypropylene Company (EPPC),
under the lead of Oriental Weavers Group, has commissioned
Uhde to build a turnkey petrochemical complex
in Port Said, some 170 kilometers north-east of Cairo. In
the same country, Egyptian Nitrogen Products Co. SAE
(ENPC) has commissioned Uhde to build a turnkey fertilizer
complex in Damietta, some 160 kilometers north-east of
Cairo. The worldwide material supply (excluding local content)
Customer Groups
for each project was estimated at about 100,000 freight
tons. The total of about 200,000 freight tons for both
plants included units from the size of a small family house
with weights of up to 307 metric tons to small air freight
packages that could be carried by hand. Shipments for
EPPC have been completed, while shipments for ENPC are
still ongoing. For both projects it was essential for Uhde
to find a partner for shipments of all materials from origin
to Egypt port and subsequent on-carriage to jobsite. The
majority of the materials were ordered by Uhde from suppliers
in central Europe, South Korea, India and China.
The solution
Against strong competition, Panalpina’s industrial projects
division Panprojects was commissioned by Uhde with
the shipping services for both projects. The execution plan
of Panprojects with its dedicated offices at the main origin
countries and the worldwide office structure of Panalpina
for each possible material supply plus the competitive rates
convinced Uhde to nominate Panprojects as their partner
for providing the shipping services for their two plants in
Egypt. Even though the main communication and coordination
was between Uhde Dortmund and Panprojects Bremen,
the local contacts between their respective branches in
Shanghai and India were essential for the success of the
shipping arrangements. These included part charter of
self-geared heavy lift vessels, part charter of non-geared
breakbulk vessels, all types of container movements, and
air freight arrangements.
“When developing the shipping concept for these projects, we were looking for a
true project forwarder with strong international presence to support our world-wide
sourcing. The shipping services were tendered on a broad basis and Panalpina
won the tender against strong competition. Panalpina’s professional approach to the
project and its international setup were the key factors for the successful shipping of
our project. Our expectations have been completely fulfilled and the services rendered
are most appreciated by Uhde.”
Arvid Grosse-Bley, Head of Shipping Department, Uhde GmbH
Panalpina Annual Report 2009
53

Sustainable Growth

Overcoming business challenges sustainably
The current business environment is challenging for the
logistics sector. Many consumers are buying less while
also demanding lower prices. The result is reductions in
shipped volumes and price pressure throughout the whole
supply chain, including logistics. There are different ways
a company can react to this environment. Some might
consider lowering their quality of service in order to lower
costs. Others, however, see this business climate as a
chance to increase efficiency and lower costs by applying
innovation rather than elimination, and to enhance their
positioning to take full advantage of the next market upturn.
Panalpina clearly takes the second approach, and our
sustainability initiative factors prominently in this business
direction.
Global Supply Chain Management, the key focus of
Panalpina’s vision and strategy, has great potential to
increase savings not only of energy use and emissions but
also logistics costs. SMEs, in particular, can profit from
highly efficient logistics solutions to control costs in a difficult
market. Panalpina is well positioned to provide them
with full-service solutions, and in return can benefit from
attractive margins and risk diversification that the SME
market offers. But for all clients of all sizes, greater cost
awareness is increasing their acceptance of more sustainable
solutions that increase the proportion of low-emission
legs of shipments like ocean freight, and increase fuel efficiency
in all shipment modes. The flexibility of Panalpina’s
asset-light model allows us to make such shifts more easily
than competitors who own more aircraft, ships, trucks
or warehouses. Also, our financial flexibility, with a very low
debt level, and our organizational flexibility, with a lean
business structure, support our ability to react nimbly to
market fluctuations.
To take full advantage of the benefits of our asset-light
model, close partnerships based on fairness and trust with
centrally managed processes in areas such as security
and compliance are essential for Panalpina. Innovative solutions
such as transport services with low and transparent
carbon footprints must include our partners to be successful.
And employees that think globally and share responsibility
with openness and appreciation are the foundation of
operating a successful global network of business relationships.
In 2009, we again increased our positioning in these
regards. We were admitted as a signatory member to the
World Economic Forum’s Partnering Against Corruption
Initiative (PACI), introduced a company-wide environmental
data monitoring including CO2 emissions, and conducted
our first global Employee Engagement Survey.
I am confident that Panalpina has an excellent foundation
for sustainable growth. We have the global footprint, deep
industry know-how, and strong centralized processes and
systems to use our asset-light model to enhance our position
within the industry in the current challenging market.
An increased globalization evolving around several global
economic centers offers substantial growth potential for
the future.
Monika Ribar
Chief Executive Officer

56
Sustainable Growth
Quality, Security and HSE
Global approaches to sustainable values
As a global organization with operations on six continents, Panalpina is focused
on applying outstanding quality and strong environmental performance to meet and
exceed its customers’ expectations.
Over the past year, systems and processes have been
deployed, upgraded and improved to do just this. With
programs to ensure the health and safety of its employees,
to enhance the quality of its customers’ experience, and to
monitor and minimize the environmental impacts of global
operations, Panalpina is positioning itself as an industry
leader that can meet the most exacting freight transport and
logistics challenges.
Unwavering focus on quality
Panalpina’s success depends on how well it serves its
customers. This responsibility extends throughout the organization
and across the globe and is embodied in its
employee training and development programs, its culture of
responsibility and accountability, and its close cooperation
with its vendors and subcontractors. In 2009, Panalpina
enhanced its focus on quality services by adding expertise
in Six Sigma methodologies to its quality management
team, and expanding its emphasis on performance measurement
and monitoring. A key organizational development
was the alignment of Panalpina’s Quality Department
with the Corporate Audit Department. This shift enables
coordinated reviews that utilize aligned standards and methodologies,
the results of which can then be efficiently
communicated to the Executive Board.
Another element of Panalpina’s approach to quality management
is the continued expansion and improvement of
the Integrated Management System (IMS) – a repository
for information regarding its business processes and standards.
The IMS serves as a core component of Panalpina’s
global Quality Management System which was audited
and recertified in 2009 according to the ISO 9001: 2000
standards. There are regular audits of Panalpina’s facilities
around the world to ensure compliance with its global
Quality Management System. In 2010, the IMS will continue
to be the bedrock of Panalpina’s freight handling practices,
and additional attention will be given to improving error
handling and incident management.
Panalpina Annual Report 2009
Customer feedback is also central to Panalpina’s commitment
to high quality. Collected largely through customer
surveys, this feedback plays an important role in informing
continual improvement efforts. Projects are underway to
standardize the methodologies for the surveys conducted
at country level to ensure that they are as effective and
informative as possible.
High security awareness
Panalpina Security stayed on course in 2009 with its proactive
approach towards security. Remaining consistent
with the new corporate structure and strategic focus, the
regional security teams have become part of the corporate
structure. The realignment permits Corporate Security
to take an expanded view of the supply chain, customer
requirements and internal operations to support policy
development. The security team combines knowledge on
transportation security, regulatory development, claims
management and law enforcement, and forms the basis
for sound security management by bringing together
industry know-how, global experience and best practices.
It is strongly supported by the Group’s Executive Board.
In 2009, Panalpina remained keenly aware of its customers’
supply chain concerns. As part of a continuous improvement
strategy, the Global Security Committee began retooling
Panalpina Security Standards. Key to this effort was
the introduction of an amended policy for Highly Vulnerable
Cargo (HVC). Panalpina’s HVC offers our customers a
variety of security-related options to enhance the standard
of care we exercise for all business. HVC protocols give
higher security consideration for at-risk products and shipping
lanes. Also in 2009, Panalpina expanded its support
of the fight against global terrorism by securing Authorized
Economic Operator (AEO) certification in Germany, the
Nether lands and the United Kingdom and achieving global
revalidation in the Customs-Trade Partnership Against
Terrorism (C-TPAT).

To meet new airline cargo screening rules set by the U.S.
Transportation Security Administration, Panalpina voluntarily
began an initiative to make key U.S. hubs and gateways
Certified Cargo Screening Facilities (CCSF). Participating
in the CCSF program will permit Panalpina to offer greater
safeguards to U.S. exports and transshipments while embracing
international efforts to safeguard the world against
acts of terrorism. At the same time Panalpina continues
to support other global government supply chain programs
and industry initiatives.
A commitment to the environment
As of 2009, Panalpina has global certification according to
the ISO 14001 framework, reflecting their commitment
to the highest level of environmental responsibility. This certification
was achieved through the PanGreen program,
launched internally at the end of 2008. PanGreen is a corporate-wide
initiative to, among other things, measure
and monitor the environmental impacts of the company’s
global operations. Phase 1 was completed during 2009,
and the initial global carbon dioxide footprint was assessed.
In the coming years, this program will be extended to
include Panalpina’s primary subcontractors in order to
understand more fully the various environmental impacts
across its supply chain. In conjunction with the Eco-Consumption
program, Panalpina is deepening its commitment
to minimizing its own environmental footprint and to
helping its customers find ways to minimize the impact of
their shipments.
Globally, there are now 70 health, safety and environment
representatives in place. These representatives are responsible
for providing guidance and advice regarding HSE
issues to the Panalpina management team. Internal audits
are performed by more than 100 trained auditors, and
696 on-site inspections were carried out in 2009 (previous
year: 591).
Health and safety programs
The health and safety of Panalpina’s employees is of paramount
importance. The company’s efforts in this arena
include ensuring a safe and hygienic workplace, instilling a
culture of responsibility and risk mitigation, and communicating
with employees, contractors and vendors on issues
of health risks, preventive measures, hygiene and proper
medical care.
Sustainable Growth
A particular challenge to the HSE strategy arose in 2009 in
the form of the global swine flu pandemic. Panalpina
responded to this challenge by developing an emergency
response plan for this outbreak, which was singled out for
praise by customers across the globe.
Panalpina insists upon the highest standards of safety in
transportation, logistics and risk mitigation associated
with the handling, storage and transportation of cargo. Its
training programs and staffing procedures ensure that
employees are qualified for the tasks they are assigned,
and that state-of-the-art equipment is used for lifting,
shelving, and storing cargo. Employees must use personal
protective equipment and must be authorized to work with
hazardous goods. Highly trained special response teams
are in place to respond rapidly and appropriately to any
emergency situation that may arise. In 2009, Panalpina’s
Emergency Response plan was deployed globally across
all Panalpina facilities.
Panalpina extended its Occupational Health and Safety
Assessment Series (OHSAS) 18001 certification to include
its facilities in China, Poland and Colombia, in addition
to the twenty-three sites already certified in previous years.
The company is committed to complying with international
standards such as the ADR (European Agreement concerning
the International Carriage of Dangerous Goods by
Road), the IATA Dangerous Goods Regulations and the
IMDG Code. Panalpina reported no fatal accidents in 2009,
with the total number of nonfatal accidents recorded at 37.
As part of the Behavioral Safety Program, employees are
also encouraged to report events which might have led to
an accident. As a result, in 2009, 102 “near-misses” were
reported (previous year: 97). The rate of lost working day
incidents in the certified areas stayed low, at 11.4 (in days
lost per 200,000/total working hours) compared to 15.4 in
the previous year.
Working with subcontractors
Panalpina’s success depends partly upon the quality
delivered by its subcontractors. By closely monitoring
all steps along its supply chain, the Panalpina team can
recognize opportunities to improve the safety, reliability
and environmental performance of the services it offers to
its customers. This is accomplished through regular communication
with subcontractors and a rigorous audit program,
whereby vendors are spot-checked for compliance
with Panalpina’s policies, as well as contractual and regulatory
obligations. In 2009, 9 instances (previous year: 28)
Panalpina Annual Report 2009
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58
Sustainable Growth
were noted where Panalpina issued corrective action
requests to subcontractors, requiring them to improve their
HSE policies or procedures.
Through these interactions, opportunities for improvement
can also be recognized. Panalpina subcontractors are
sometimes the source of new ideas for product or service
offerings, and, likewise, Panalpina can offer its own experience
and insight to its subcontractors on how they could
improve their operations. As an example, in 2010, Panalpina
will pilot a program in which the energy and environmental
impacts of some of its subcontractors will be assessed,
with the aim of accurately calculating the carbon footprint
of a particular shipment. This will undoubtedly provide
new insights for Panalpina’s network of subcontractors for
improving their own environmental performance.
Environmental initiatives
Panalpina is committed to minimizing the environmental
impact of its operations. To accomplish this, it pilots
new projects, programs and technologies to reduce or
even eliminate releases of pollutants to air, water or soil.
Training and education play a key role in Panalpina’s environmental
portfolio. In 2009, an environmental e-learning
training program was launched, and all employees participated
globally. In addition to this, Panalpina has made
this training program available to its subcontractors so their
employees can also benefit from Panalpina’s experience
in this area.
Automating trucking transactions: Freight forwarding companies
frequently seek to automate transactions in order
to increase efficiency, lower costs, and monitor quality.
However, as Panalpina has learned, it also eliminates large
amounts of paper, sometimes as much as several hundred
trees’ worth annually. By utilizing electronic versions of
invoices, insurance certificates, contracts and other supporting
documents, Panalpina has not only made their
operations more efficient, but realized a significant environmental
benefit.
CO2-neutral shipping: Customers can request that their
shipments be made carbon neutral through the use of
carbon offset credits. Panalpina will calculate the total car-
bon footprint using the methodologies of the Greenhouse
Gas Protocol, and order traceable, documented carbon
offsets in order to render a particular shipment, or set of
shipments, carbon neutral.
Panalpina Annual Report 2009
Reusing shipping materials: Panalpina’s Beijing gateway
initiated a program to reuse shipment covers that were
previously discarded. When shipments that are covered by
these tarpaulins are received at the destination, the tarpaulins
are stored until enough are collected to fill a container,
which is then returned to the originating point. Thus far,
over 950 tarpaulins have been returned for reuse, not only
eliminating the waste, but also saving over 20% in costs.
Overview of environmental performance indicators 2009
In 2009, Panalpina reached an important milestone in terms
of its environmental monitoring. For the first time, key
indicators of the environmental impacts of the company’s
internal operations could be collected in a systematic,
harmonized manner across 80 countries in all regions
where Panalpina operates.
This enhanced data set will be essential in planning for
further reductions of environmental inputs, and will be
the foundation of extending environmental monitoring to
Panalpina’s subcontractors, especially with regard to
energy use and CO2 emissions.
The following table at the right gives an overview of the
environmental performance figures collected as of 2009
across Panalpina’s internal operations globally. Compari-
sons with previous year figures will be available starting
next year, when the data management system will have
been used for a second full business year.

Almost 30% of indirect energy use – electricity and
district heat consumption – is sourced from renewable
sources.
Sustainable Growth
Activties 1 Performance indicator Unit 2009 values
Energy and CO2
Electricity Consumption terajoule 173
Heating Overall consumption terajoule 76
– District heat terajoule 9
Vehicle fuel Consumption (Panalpina-owned and lease vehicles only) terajoule 195
CO2 emissions 2 Total emissions tons 38,200
– Direct (Scope 1) tons 17,700
– Indirect (Scope 2) tons 20,500
Materials
Paper Consumption Sheets /106 204
Toner cartridges Consumption Number 12,600
Water Consumption m3 /1000 331
Spillages 3 Incident number 10
Notes:
1 For each indicator, there are some countries where no data was provided in this first year of monitoring. For more details, please refer
to the GRI Content Index.
2 C O 2 emissions were calculated according to guidelines of the Greenhouse Gas Protocol. Emission factors for direct emissions were
taken from IPCC, 2006. Emission factors for indirect emissions were taken from the International Energy Agency (IEA). For more details,
please refer to the GRI Content Index.
3 There was no case with significant damage.
Energy balance by energy category
Indirect
renewable energy
in GJ
200,000
175,000
150,000
125,000
100,000
75,000
50,000
25,000
0
Indirect
energy
Direct
renewable energy
Electricity Heating Owned
vehicles
Direct energy
Vehicle fuels and electricity use are the main sources
of direct (scope 1) and indirect (scope 2) CO2 emissions
by Panalpina’s operations.
CO2 emission by scope and activity
Scope 2 Scope 1
in t CO2
20,000
17,250
15,000
12,250
10,000
7,250
5,000
2,250
0
Electricity Heating Owned
vehicles
www.panalpina.com / quality
www.panalpina.com / security
www.panalpina.com / hse
Panalpina Annual Report 2009
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Sustainable Growth
Employees
Engagement, development and compensation
for long-term success
Panalpina’s Global Human Resource Processes support employees in contributing
to the company’s strategic business goals by focusing on securing organizational
capabilities, individual competencies and employee engagement.
For the first time in its history, the company had to reduce
staff to adjust to lower business volumes. Certain organizational
layers were eliminated to further improve efficiency
and enabling decisions to be made closer to the market.
In such an environment, Panalpina has relied upon each and
every employee’s passion in contributing to the company’s
goals and focused upon ensuring that our employees feel
valued for their efforts. To bolster organizational support,
the Global HR Process has been further aligned with the
corporate strategy and strengthened as a service partner
for the entire company. In our Business Areas we are also
focusing far more on the implementation of HR processes
and policy.
A global team with high engagement
At the end of 2009, Panalpina had 13,570 employees in
80 countries. Committed employees have the opportunity
to grow with Panalpina, enhancing the service provided
to customers. In order to better understand how our employees
are “thinking, feeling and acting,” Panalpina’s first
global Employee Engagement Survey was conducted in
2009 in ten languages. 10,993 employees took part in the
survey, representing a 81.5% response rate, with 47.3%
of the respondents having more than five years of experience
at Panalpina. Women comprised 48% of respondents.
Results from the survey indicate that levels of employee
engagement are in line with Towers Watson Global High
Performance Norm and significantly above typical values
in our industry. Topics on which employees expressed
particular satisfaction included efficiency and quality, systems
and tools and collaboration and alignments, while
room for improvement was identified, for example, in relation
to Communication and learning & development –
areas which will be addressed by follow-up initiatives.
Panalpina Annual Report 2009
Continued commitment to learning and development
Today’s challenging environment notwithstanding, Panalpina
remains committed to providing need-based and timely
training for its employees. The Panalpina Academy increased
its focus on aligning individual learning and development
plans with the capability requirements of the organization,
supporting Panalpina’s ability to deliver on its strategy.
One focus in 2009 was the continued rollout of a financial
skills building program. Over 170 key non-financial personnel
with P & L responsibilities completed an intensive
“Basics of Finance” program now bringing the total to more
than 400 key personnel trained over the past 2 years. An
Advanced Finance Program based on value creation was
also rolled out, led by the CFO who was supported by
the Academy. Over 500 members of key management have
completed the program by the end of February 2010.
In addition to the major e-learning initiative on compliance
(see Corporate Culture chapter), e-learning at Panalpina
has been extended by the development of programs on
Customer Satisfaction for operations employees and
Product Training for the sales force. Initially in English and
thereafter in an additional five languages, these trainings
will be offered to over 4,000 employees in 2010. And within
the PanGreen initiative, e-learning was provided on Ecoconsumption
and the Panalpina Environmental Management
System, with over 9,000 employees successfully
completing those modules in 2009.
The Company’s global high-potential program on collaborative
strategic leadership skills, now in its very successful
sixth year, enrolled an additional thirty-three candidates in
2009. This year, the company also re-launched an intensive
global leadership and managerial skills program. Over
250 department heads, team leaders, and supervisors
will undergo three modules of this program over the course
of the next twelve months in Mandarin, German, French,
Portuguese, Spanish and English.

Assessment centers to identify the leaders of tomorrow
Having the right people in the right positions and having a
leadership pipeline is key for the future success of Panalpina.
To build on our internal Performance and Appraisal process,
and to successfully select, promote and develop highpotential
candidates for leadership positions, assessment
centers have been established as another tool in helping
us build a high-performance organization. They complement
interviews with other forms of exchanges, including presentation
exercises and role-play. Studies have shown that
such a comprehensive method is over three times more
effective at predicting success of candidates selected as
compared to pure interview processes.
Assessment centers are currently offered to selected senior
management staff members to evaluate and nurture talent.
Their goals include accelerated employee development and
improved succession planning.
Fair, transparent and motivating compensation
Panalpina takes pride in continuing to be an Employer of
Choice despite the harsh economic reality of 2009.
Panalpina achieves its goals by benchmarking its HR pro-
cesses against Global Best Practices. Panalpina ensures
fair and competitive compensation through participation
in market surveys thereby maintaining a keen competitive
edge and retaining top talent. Further reflecting fairness,
2010 will be a year to consolidate compensation and benefit
practices across its global locations. Both the number
of key executives offered and the number participating
in the Management Incentive Plan are at an all-time high,
clearly demonstrating commitment by staff to align with
shareholders and their long-term faith in Panalpina and its
strategic outlook.
To streamline the cross-border transfers for key personnel
the Global Mobility Policy developed in 2008 was extended
in 2009 by establishing a global employment company for
international assignees. This facilitates employee career
progression and increases cost controls and unprecedented
transparency. Affordable, focused and fair compensation
is key to future success.
Employees Number
Europe/Africa /Middle East/CIS 6,822
North America 2,187
Central and South America 1,755
Asia Pacific 2,806
Total 13,570
www.panalpina.com / jobs
Panalpina Annual Report 2009
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Sustainable Growth
Corporate Culture
Shared values, ethical behavior
Panalpina’s corporate culture embodies shared values, cross-cultural understanding,
and ethical behavior based on fairness, respect and responsibility in all dealings within
and outside the company.
Multicultural exchange and cross-border collaboration are
integral components of Panalpina’s corporate culture.
They are essential for the success of Panalpina, with its
ca. 500 own representative offices in over 80 countries,
and close collaboration with partner companies in a further
80 countries.
During the year under review, 21 employees from 8 countries
took advantage of Panalpina’s exchange program,
allowing them to spend an average of three months abroad
within the company. Participation was particularly intense
by employees from China, North America, Germany and
the Netherlands. The respect for all cultural backgrounds
strengthened by such exchanges is also supported by the
company’s Code of Conduct.
Also during this year we have engaged many employees
from right around the globe in revisiting our core values.
Our aim is to bring more to the forefront of peoples minds
the values we espouse and live and to secure that all our
employees really do understand what values mean to them
in relation to the daily work decisions they make and the
manner in which they interact with their customers and
their colleagues. Building an understanding of the values
we want all our employees to share takes time and effort
but we see this as a fundamental investment in maintaining
a relevant, strong and healthy corporate culture.
Securing business responsibility: The Code of Conduct
Introduced in 2006 and enhanced in 2008, Panalpina’s
Code of Conduct represents the company’s commitment
to honesty, integrity and responsibility. The Code is based
on principles derived from the United Nations’ Universal
Declaration of Human Rights and from internationally
recognized environmental standards and labor laws. The
Code of Conduct requires Panalpina to comply with all
legal provisions in force and with the highest ethical standards.
It contains binding rules on health, safety, and
environment, on employee relations, including protection
from discrimination and harassment, on ethical business
conduct, including fair competition and antitrust and
Panalpina Annual Report 2009
trade regulations, on the strict prohibition of bribery and
corruption, including a prohibition on political contributions
by the company, and on responsibility for company
assets and financial integrity.
The Code of Conduct is available in 30 languages via
the Intranet, and can also be downloaded from
www.panalpina.com/culture. It applies to all Panalpina
employees. In keeping with the successful 2008 program
to obtain signatures from all employees confirming their
commitment to following the Code’s provisions, all new
employees that joined the company in 2009 have signed
the Code. Staff members can report breaches of the
Code of Conduct to their line or HR managers or directly
to the Corporate Compliance Office.
Strong continuation of Compliance Program expansion
Reflecting the importance Panalpina attaches to compliance
issues, in the year under review a decision was made
to double the size of the compliance team. When the
new positions have been filled, seven full-time Corporate
Compliance Managers will assist the Corporate Compliance
Officer, Markus Heyer, who reports directly to the
CEO and to the Legal and Compliance Committee of the
Board of Directors.
In the year under review, the compliance team visited
Panalpina operations in more than 20 countries to make
sure that Code of Conduct and Compliance programs
were implemented fully and correctly. The selection of the
countries chosen for these checks was partly based on
the Corruption Perceptions Index of Transparency International,
a global civil society organization focused on the
fight against corruption.
In 2008, a major expansion of internal instruction under
Panalpina’s Compliance Program was started. This initiative
continued in 2009, with 40 management training sessions
on compliance conducted in the year under review,
and a particular focus on antitrust issues. The company’s
e-learning platform that supports employees in familiarizing

themselves with the Code of Conduct and key compliance
issues was initiated in 2008 with a first module on general
introduction to the Code of Conduct with a focus on anticorruption.
In 2009, two additional modules were made
available in 16 languages. The first new module, focusing
on antitrust issues, was successfully completed by more
than 11,500 employees by the end of the year. Roll-out of
the second new compliance e-learning module, focusing
on trade regulation issues, started in November 2009.
Working with suppliers, customers and peers on
securing compliance
In addition to continuing the roll-out of the compliance
program for corruption prevention to suppliers and subcontractors,
in the year under review Panalpina also increasingly
discussed compliance issues directly with its customers.
The Corporate Compliance team gave presentations on
the company’s compliance programs to major customers
around the world. The focus was on Oil and Gas customers,
but other sectors such as Hi-tech were included as
well. The customer feedback was very positive and supportive,
and Panalpina is committed to continue working
with its clients on securing compliance throughout the
value chain.
Panalpina is known for its clearly
defined values and for rules
of behavior that meet the highest
standards.
Also in 2009, Panalpina was admitted as a signatory
member to the World Economic Forum Partnering Against
Corruption Initiative (PACI). The PACI requires CEO com-
mitment to zero tolerance for bribery and a commitment
to implement a practical and effective anticorruption program
within the company, benchmarked against the PACI
Principles.
www.panalpina.com / culture
Panalpina Annual Report 2009
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Sustainable Growth
Information Technology
Building integrated data systems for a
global organization
In this era of instantaneous global information exchange and an ever-growing need for
visibility, Panalpina’s customers are increasingly expecting immediate and accurate
data regarding all aspects of the freight transport process, including locations, security
and detailed environmental impacts. As a result, the company is taking steps to
meet these demands through the deployment of state-of-the-art IT systems, new technologies
and smart, robust systems architecture.
Panalpina’s aim is to offer a bundle of IT solutions to support
customers to create value along their supply chain.
In the past year, the Panalpina IT team continued to expand
various key components of its IT portfolio. As part of its
objectives to more seamlessly integrate Panalpina’s data
landscape with that of its customers, several key systems,
notably the SAP-based Transport Management System
and the Supply Chain Toolbox, were slated for significant
upgrades. Worldwide rollout of the new Document Management
System was finished at the end of 2009, which will
enhance productivity and consolidate and optimize processes
across all business units.
In 2009, a new Management Information System was
implemented to enable Panalpina’s business units, partners
and customers easier access to data and improve
the control mechanisms for data quality and security. This
system is a key element in a shift toward online reporting
throughout the Panalpina organization, and ultimately
will consolidate financial reporting, shipment information,
customer-relevant information and the measuring and
monitoring of key performance indicators into one integrated
infrastructure.
Meeting customer expectations
The SAP Transport Management System is an end-to-end
business solution that successfully passed the pilot rollout
in December 2009 and did go live with the first implementation
for Ocean Freight in January 2010. The tool that soon
will be used globally and is planned to cover all Panalpina
products, offers several advantages. First, it unifies the
quotation process, providing a single portal where a customer
can receive transport shipment rates. Second, it
automates the billing process, allowing for a smooth workflow.
Lastly, the system will facilitate increased data quality
and simplify the documentation process.
Panalpina Annual Report 2009
To further improve Panalpina’s data systems, two key
legacy applications, the Order Management System and
the Track and Trace System, were migrated to a new
technology platform. This has several key benefits, includ-
ing enhanced scalability in line with market expectations,
a more complete integration of the Supply Chain Manage-
ment landscape into Panalpina’s core operations systems,
and greater flexibility to respond to various customer
requirements.
State-of-the-art IT infrastructure
The optimization of Panalpina’s hardware infrastructure
also continues to be a priority, as evidenced by ongoing
efforts to virtualize its IT server systems. The benefits to
be gained from this include a reduction in the total cost of
ownership, the optimization of hardware utilization, reduced
maintenance and energy requirements for the company’s
data centers, and thus improved overall environmental
performance.
Outlook for 2010
In the upcoming year, efforts will continue to completely
integrate the data and IT systems across Panalpina.
Specifically, an Air Freight application will be developed for
the Transport Management System and the Ocean Freight
system will be rolled out globally. Responding to the needs
of customers will continue to be a priority, particularly in
the area of providing data, labeling, and information regarding
their shipments, and deploying new technologies to
track shipments anywhere in the world. With the help of the
most advanced tools in place, Panalpina is strengthening
its position as a global supply chain management company
with state-of-the-art IT solutions.

Social Commitment
Preventing poverty-induced blindness
Sustainable Growth
Panalpina believes its social responsibilities extend beyond fair and ethical conduct
toward customers, employees and suppliers, and include a responsibility toward
society as a whole. Since 2003, Panalpina has supported the Vision First program in
Ghana, which prevents avoidable blindness by offering clinical and surgical eye care
to patients who otherwise would not have access to treatment.
In order to focus its social commitment on a project where
the company’s engagement makes a clear difference,
Panalpina has chosen one key initiative that has measureable
outcomes and is conducted in one of the regions
where the company operates.
Estimates indicate that more than 25 million people in the
African region live with visual impairment. One child goes
blind every minute and has a 50% risk of dying within two
years of the onset of blindness. In Ghana alone about
230,000 people, or more than 1% of its estimated 20 million
inhabitants, are blind. Over 80% of these cases are caused
by preventable and curable diseases such as cataract,
trachoma and nutritional blindness. Receiving appropriate
treatment is difficult for the affected, due in part to both
poverty and a scarcity of trained healthcare providers. Africa
has just one ophthalmologist for every one million inhabitants,
compared to the one to thirteen thousand ratio in
Switzerland.
Combining international and local resources for success
To mitigate this situation, the Vision First program has a
three-pronged approach: treating eye disorders that can
lead to blindness, training specialized medical personnel,
and expanding infrastructure and technology. This is
made possible by a combination of external funding like
Right to Sight and Vision First
The global Right to Sight program, a partnership between
the WHO and the International Agency for Prevention of
Blindness, was established in 1999 to eliminate avoidable
blindness by the year 2020, and prevent the 100%
increase in the prevalence of avoidable visual impairment
between 1990 and 2020 projected at that time. In Ghana,
the Swiss Red Cross and the Ghana Red Cross Society
collaborate with the Ministry of Health to implement these
goals via the Vision First initiative. Panalpina has supported
Vision First since 2003.
Panalpina’s support with local resources: a key contribution
to the program is a network of volunteers that provide
eye care in remote village communities. These volunteers
conduct eye checks, support the affected in receiving
glasses or treatment in the nearest clinic, and offer vital
information on eye care that helps many to avoid blindness.
Since its initial involvement in 2003, Panalpina has supported
Vision First in an ongoing partnership with the
program’s organizers. The company’s commitment was
extended for three further years in both 2006 and 2009.
In each three-year period, Panalpina commits CHF 600,000
to this program, which has provided clinical services to
more than 750,000 people and surgical services to over
20,000 patients since its inception.
2009 results
Patients treated
(in clinics, in the field and in schools)
121,898
Surgeries performed 1,190
Patients issued with vision aids 892
Clinics / hospitals in operation 13
Persons reached by Red Cross volunteers for health
education
Number of personnel
420,241
Ophthalmologists 1
Opticians 2
Eye-care advisors 0
Nurses (trained to treat minor eye diseases) 23
Schoolteachers (with special training on healthcare
m a t t e r s )
325
Active Red Cross volunteers 878
www.panalpina.com / society
Panalpina Annual Report 2009
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Sustainable Growth
Corporate Governance
Corporate Governance and Remuneration Report:
committed to a transparent management structure
Panalpina is committed to a transparent management structure that is governed
by international corporate governance principles. This Corporate Governance Report
complies with the revised Directive of the SIX Swiss Exchange and therefore serves
to provide investors with key information regarding corporate governance in an
acces sible format. Section 5 of this report also serves as a Compensation Report as
recommended by economiesuisse in its Swiss Code of Best Practice for Corporate
Governance guidelines.
1 Group structure and shareholders
1.1 Group structure
1.1.1 Operational group structure
Panalpina’s business activities are primarily regionally
oriented. The operating structure is divided into the following
four regional units:
• Europe/Africa/Middle East/CIS
• Asia Pacific
• North America (USA and Canada)
• Central and South America
Effective 1 January 2009, Panalpina integrated the regional
management layer into its Head Office structure.
Secondary, the business activities are subdivided into the
following business segments:
• Air Freight
• Ocean Freight
• Supply Chain Management (logistics and overland
transportation activities)
Supplementary information can be taken from the segmental
reporting section of the Consolidated Financial
Statements (pages 104 – 105).
1.1.2 Listed companies within the scope of
consolidation
Panalpina World Transport (Holding) Ltd. (PWT), the ultimate
holding company of the Panalpina Group, is the only listed
company within the scope of consolidation. PWT has its
registered office in Basel, Switzerland. The PWT shares
are exclusively listed on the SIX Swiss Exchange.
The market capitalization on the closing date amounted to
CHF 1,645 million (25,000,000 registered shares at
CHF 65.80 per share).
Panalpina Annual Report 2009
The PWT shares are traded under Valor no. 216808 /
ISIN CH0002168083, symbol PWTN.
1.1.3 Non-listed companies within the scope of
consolidation
The main subsidiaries and associated companies are
disclosed in the Consolidated Financial Statements
(pages 138 – 140) itemized by registered office, nominal
capital, equity interest in percent, investment and method
of consolidation.
1.2 Significant shareholders
The Ernst Göhner Foundation, Zug, Switzerland, is the
main shareholder of PWT, with an equity participation
of 44.58%.
Panalpina World Transport (Holding) Ltd., Basel, Switzerland,
held a share capital of 5.33% on closing date. The
respective treasury shares were purchased as a result of
PWT’s share buyback program (referenced in section 2.3)
and its share and option program (referenced in section 5.1).
With regard to other significant shareholders, during the
reporting year various disclosures were made on the SIX
online publication platform. The various notifications (listed
by shareholder and transaction date) are summarized as
follows:
The Income Fund of America Inc., Los Angeles, USA
12. 02. 2009 increase of share capital to 3.2%
17. 04. 2009 decrease of share capital to less than 3%
Deccan Value Advisors LP, Greenwich, USA
11. 06. 2009 decrease of share capital to less than 5%
30. 06. 2009 increase of share capital to 5.01%
31. 07. 2009 decrease of share capital to less than 5%
16. 09. 2009 decrease of share capital to less than 3%

Artisan Partners Limited Partnership, Milwaukee, USA
03. 11. 2009 increase of share capital to 5.01%
FIL Ltd. (Fidelity International) Hamilton, Bermuda
29. 07. 2009 increase of share capital to 3.01%
17. 09. 2009 increase of share capital to 5.37%
24. 11. 2009 decrease of share capital to less than 5%
Capital Group Companies, Los Angeles, USA
29. 10. 2009 decrease of share capital to less than 5%
01. 12. 2009 decrease of share capital to less than 3%
After the balance sheet date the following disclosure
notices were published:
FIL Ltd. (Fidelity International) Hamilton, Bermuda
28. 01. 2010 decrease of share capital to less than 3%
Cevian Capital II Master Fund L.P.
27. 01. 2010 increase of share capital to 3.77%
23. 02. 2010 increase of share capital to 5.19%
1.3 Cross-shareholdings
No cross-shareholdings exist between PWT and any other
company.
2 Capital structure
2.1 Capital
On the closing date, the ordinary share capital of PWT
amounted to CHF 50,000,000 and is divided into
25,000,000 registered shares, with a nominal value of
CHF 2.00 each.
2.2 Authorized and conditional share capital
The extraordinary Shareholders’ Meeting of PWT held
on 23 August 2005 agreed with the Board of Directors’
proposal to create an authorized share capital up to a
maximum aggregate amount of CHF 6,000,000 by issuing
a maximum of 3,000,000 registered shares with a nominal
value of CHF 2.00 each. At the Shareholders’ Meeting
of 15 May 2007 and subsequently at the meeting of 5 May
2009 the authorized share capital was renewed at the
same value until 5 May 2011.
The Board of Directors is authorized to exclude the preemptive
rights of shareholders and to convey them to third
parties, provided that such new shares are to be used
for the takeover of entire enterprises, divisions or assets of
enterprises or participations or for the financing of such
transactions. The Board of Directors has not yet made use
of this authorization.
Sustainable Growth
No decision has been made regarding the creation of
conditional capital.
2.3 Change in capital over the past three years
With the exception of the share split introduced at the IPO,
there has been no change in the share capital structure
during the years 2005 through 2009.
In August 2007, the Board of Directors initiated a share
buyback program. Under this program, shares amounting
to 5% of the share capital (1,250,000 shares) have been
repurchased. The buyback program was concluded on
2 September 2008. The proposal of the Board of Directors
to the Annual General Meeting to reduce the share capital
and cancel the repurchased shares has been postponed.
2.4 Shares and participation certificates
On the closing date, 25,000,000 fully paid-in PWT registered
shares with a nominal value of CHF 2.00 each
were issued. On this date, no participation certificates
were issued.
2.5 Dividend-right certificates
On the closing date, no dividend-right certificates had
been issued.
2.6 Limitations on transferability and nominee
registrations
2.6.1 Limitations on transferability for each share
category; indication of statutory group clauses and rules
for granting exceptions
Acquirers of PWT shares are entered into the share register
as shareholders with voting rights upon provision of proof
of the acquisition of the shares and provided that they
expressly declare that they hold the shares in their own
name and for their own account.
The Articles of PWT specify that any shareholder may
exercise voting rights to a maximum of 5% of the total
number of shares recorded in the commercial register. This
limitation for registration in the share register shall also
apply to persons who hold shares fully or in part through
nominees within the meaning of the Articles. Furthermore,
this limitation for registration in the share register also
applies to registered shares that are acquired through the
exercising of preemptive rights, warrants and conversion
rights. The Board of Directors is empowered to allow
exemptions from the limitation for registration in the share
register in particular cases.
The Articles make provision for group clauses.
Panalpina Annual Report 2009
67

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The limitations on transferability do not apply to the shares
held by the Ernst Göhner Foundation because it held
PWT shares prior to the implementation of the limitations
(so-called grandfathering).
2.6.2 Reasons for granting exceptions in the year under
review
No exceptions were granted during the reporting year.
2.6.3 Admissibility of nominee registrations; indication
of any percent clauses and registration conditions
The Articles of PWT specify that the Board of Directors
may register nominees with voting rights in the share register
up to a maximum of 2% of the share capital recorded
in the commercial register. Nominees are persons who do
not expressly declare in their application that they hold the
shares for their own account and with whom the company
has entered into an agreement to this effect.
The Board of Directors is empowered to register nominees
with voting rights exceeding 2% of the share capital
recorded in the commercial register as long as the respective
nominees inform PWT of the names, addresses, nationalities
(registered office in the case of legal entities) and the
shareholdings of those persons for whose account they
hold 2% or more of the share capital recorded in the commercial
register.
The Articles make provision for group clauses.
2.6.4 Procedure and conditions for canceling statutory
privileges and limitations on transferability
A resolution of the General Shareholders Meeting of PWT
on which at least two-thirds of the voting shares represented
agree is required for any abolition or change of the
provisions relating to transfer limitations.
2.7 Convertible bonds and warrants / options
There were no convertible bonds outstanding on the
closing date.
The only issued options relate to the share and option participation
program for 440 senior managers of Panalpina.
As of 2009 the Executive Board has been excluded from
participation in this program. For further details please refer
to section 5.1.
Panalpina Annual Report 2009
3 Board of Directors
3.1 Members of the Board of Directors
On the closing date, the Board was composed of seven
persons.
Three members of the Board of Directors (Rudolf W. Hug,
Wilfried Rutz and Roger Schmid) are also members of
the Board of Trustees (Stiftungsrat) of PWT’s main shareholder,
the Ernst Göhner Foundation.
The biographies of the members are as follows:
Rudolf W. Hug, Chairman. Swiss citizen. Born in 1944.
Re-elected in 2008 (until 2010).
Rudolf W. Hug holds a PhD in law from the University of
Zurich and a MBA from INSEAD, Fontainebleau (France).
In 1985, he participated in the Executive Program of the
Graduate School of Business at Stanford University. From
1977 to 1997, he worked in several positions for Schweizerische
Kreditanstalt (today Credit Suisse). During the
period from 1987 to 1997, he ran the international division
and served as a member of the Executive Board of Credit
Suisse and Credit Suisse First Boston. Since 1998, Rudolf
W. Hug has been active as an independent management
consultant. Rudolf W. Hug has been a member of the
Board of Directors since 2005 and was appointed Chairman
of the Board of Directors on 15 May 2007 following
the retirement of his predecessor.
Wilfried Rutz, Vice Chairman. Swiss citizen. Born in 1939.
Re-elected in 2007 (until 2010).
Wilfried Rutz holds a university degree in economics as
well as a PhD from the University of St. Gallen. From 1992
to 2004, he acted as CEO of the Debrunner Koenig Group.
Further he has been a member of the board of several
Swiss companies in the private and the public sector. Since
2003, he has been a Member of the Board of Directors
of PWT and in 2005 he was elected as Vice Chairman.
Günther Casjens, Member of the Board of Directors.
German citizen. Born in 1950. First election 2005,
re-elected in 2008 (until 2010).
Günther Casjens is a trained forwarding and shipping
merchant. From 1974 to 2004, he held several positions at
Hapag-Lloyd, in 1983 as Deputy Director of Europe / Far
East Services, in 1987 as Managing Director North America
Services, and in 1988 as Managing Director North and
South America Services. In 1990, Günther Casjens became
a deputy member of the Executive Board of Hapag-Lloyd,
and from 1991 to 2004, he was member of the Executive
Board of Hapag-Lloyd. From 2004 to 2008, Günther Casjens

was Managing Partner and Chief Executive Officer of
Nord capital Holding GmbH & Cie KG. Since 2008, he has
been an independent investment consultant.
Yuichi Ishimaru, Member of the Board of Directors. Japanese
citizen. Born in 1939. First election 2005, re-elected
in 2008 (until 2010).
Yuichi Ishimaru holds a bachelor degree in economics from
Keio University. He has worked for the Marubeni Corporation
since 1963. From 1995 to 1998, Yuichi Ishimaru has
been member of the Board of Directors of Marubeni Corporation
and served as COO for Marubeni America Corporation,
New York. From 1998 to 2000, Yuichi Ishimaru served
as CEO for Europe and Africa for Marubeni Europe PLC,
London. Since 2001, he also holds a position as Executive
Vice President of Marubeni Corporation, and since 2003
he has acted as a special advisor to Marubeni Corporation.
Glen R. Pringle, Member of the Board of Directors. American
citizen. Born in 1947. First election 2005, re-elected in
2008 (until 2010).
Glen R. Pringle holds a Bachelor of Arts degree from the
University of Alabama (College of Arts and Sciences).
After his studies, Glen R. Pringle worked as State Director
of Sales for CENCO Instrument Company. Thereafter he
worked at WVMI / WBIL Radio Station as a manager of
sales. Starting 1986, Glen R. Pringle held the position of
Development Director for the Alabama Development Office
until 1995, when he became the Development Director of
Retirement Systems of Alabama.
Guenter Rohrmann, Member of the Board of Directors.
German citizen. Born in 1939. Elected in 2008 (until 2010).
Guenter Rohrmann is a trained forwarding and shipping
merchant. He started his forwarding career at Seaboard
World Airline in 1961. From 1962 to 1982, he held several
positions at Air Express International (AEI) and in 1982
he became the Vice President Operations USA. From 1985
to 1989, he was COO and the following year he became
the CEO of the AEI Group. From 2000 to 2002, he was the
Vice Chairman of Danzas AEI Inc. Guenter Rohrmann
became COO DHL GCS Global Customer Solutions from
2002 to 2005. In 2005, he was appointed as CEO DHL
Emerging Markets and in 2007 he became a consultant for
DHL Emerging Markets. Since the beginning of 2008, he
has been an independent management consultant working
on a variety of industry projects.
Roger Schmid, Member of the Board of Directors. Swiss
citizen. Born in 1959. Re-elected in 2007 (until 2010).
Sustainable Growth
Roger Schmid holds a university degree in law as well as
a PhD in law from the University of Zurich. From 1991
to 1995, he was Legal Counsel and Director at Bank Leu,
a subsidiary of Credit Suisse. Since 2003, he has been
a member of the Board of Directors. Roger Schmid works
as an Executive Director of the Ernst Göhner Foundation.
All the members of the Board are non-executive members
and do not actively perform any managerial functions at
PWT or any of the Group companies. Nor have they held
any executive positions within the past three years prior to
this reporting year.
None of the members of the Board of Directors has a
substantial business relationship with PWT or any of its
group companies.
3.2 Other activities and vested interests
Rudolf W. Hug, Member of the Board of Trustees
(Stiftungs rat) of the Ernst Göhner Foundation, Zug, and
Member of the Board of Directors of the following
com panies: Swiss Post, Berne (until December 2009);
Orell Füssli Holding AG, Zurich; Deutsche Bank (Schweiz)
AG, Geneva; Allreal Holding AG, Baar.
Wilfried Rutz, Chairman of the Board of Trustees
(Stiftungs rat) of the Ernst Göhner Foundation, Zug.
Günther Casjens, Member of the Advisory Board at
Deutsche Bank AG, Hamburg, Corporate Adviser of
Temasek Group, Singapore.
Roger Schmid, Member of the Board of Trustees and
Executive Director of the Ernst Göhner Foundation, Zug,
Member of the Board of Directors of Verwaltungs- und
Privatbank (Schweiz) AG, Zurich (until April 2009), and AIG
Private Equity Ltd., Zug (until May 2009).
Other than these, the members of the Board of Directors
do not hold other material offices, nor do they carry
out any other principal activities that affect the Group.
3.4 Elections and terms of office
3.4.1 Principles of the election procedure and limitations
on the terms of office
The Articles of PWT do not make provision for the general
renewal of office for the Board of Directors. The members
of the Board of Directors are elected at each General
Meeting of Shareholders with a one-year period of office.
They may be re-elected at any time. The Organizational
Regulations of PWT specify an age limit of 72 years for the
members of the Board of Directors.
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3.4.2 The first election and remaining term of office for
each member of the Board of Directors
The timing of the first election and the remaining term of
office for each member of the Board of Directors is specified
under section 3.1.
3.5 Internal organizational structure
The Board of Directors is responsible for the ultimate management
of the company and monitoring of the Executive
Board. It represents the company externally and is responsible
for all matters which have not been transferred to
another executive body of the Company by the Swiss Code
of Obligations or the Articles. In line with the Articles, the
Board of Directors has established Organizational Regulations
that transfer certain management responsibilities to
the Executive Board.
3.5.1 Allocation of tasks within the Board of Directors
The Board of Directors self-constitutes and appoints its
Chairman and Vice Chairman. The Chairman (in his absence
the Vice Chairman) directly supervises the business affairs
and activities of the Executive Board and is entitled to regularly
attend Executive Board meetings. The Corporate
Auditor as well as the Corporate Secretary, in his capacity
as secretary to the Board of Directors, are directly subordinated
to the Chairman of the Board of Directors.
3.5.2 Member list, tasks and areas of responsibility for
each committee of the Board of Directors
Three committees exist under the Board of Directors.
The Audit Committee consists of the following members of
the Board of Directors: Wilfried Rutz (Chairman), Günther
Casjens and Roger Schmid. The Audit Committee supports
the Board of Directors with the review of the company’s
financial statements, the supervision of the financial accounting
standards and reporting, the review of the effectiveness
of the Internal Control System (ICS) and with the efficiency
of external and internal audit procedures including risk
management. The Audit Committee reviews the consolidated
annual financial statements as well as the published
interim financial statements and submits an application
to the Board of Directors for approval. It regularly maintains
contact with the Group Auditor and the Corporate Auditor.
On this basis, it adopts the detailed reports of the Group
Auditors and semi-annual reports of Corporate Audit. It is
therefore in the position to audit the quality, effectiveness
and interaction between the control systems, to determine
the audit priorities, to introduce proposed measures and
to monitor their implementation. The Audit Committee
determines the organization of Corporate Audit, adopts the
Panalpina Annual Report 2009
internal audit charter and approves the annual planning /
scope of internal audit.
In the field of risk management, the Audit Committee
approves the detailed and weighted risk map of the Executive
Board, adopts the necessary measures for risk control
and risk mitigation and reports the respective outcome
to the Board of Directors on a yearly basis. The risk map
itself covers any strategic, financial, operational, legal and
compliance risks that could significantly impact the company’s
ability to achieve its business goals and financial
targets. Identified risks are weighted and prioritized by the
Executive Board according to their significance and likelihood
of occurrence. For each risk, specific risk mitigation
measures – including their current status – are defined and
responsibilities are allocated. The risk map, which is compiled
by the Risk Review Committee, chaired by the Corporate
Secretary, for review by the Executive Board and
subsequent approval by the Audit Committee, contains risks
identified and assessed by the respective corporate functions,
selected country management, Corporate Audit and
the group auditors. The annual risk map also features risks
which have increased or decreased in the course of the
reporting year.
During the reporting year the Audit Committee held five
half-day meetings. During Audit Committee meetings, direct
discussions took place with representatives of the Group
Auditors and Corporate Audit. Representatives from the
Group Auditors were present at three of these meetings and
the Corporate Auditor attended four of the above-mentioned
meetings. At these meetings, the Executive Board
was regularly represented by the CEO, the CFO and the
Corporate Secretary.
The Compensation and Nomination Committee consists
of the following members of the Board of Directors: Rudolf
W. Hug (Chairman), Wilfried Rutz, Yuichi Ishimaru and
Guenter Rohrmann (as of December 2009). It monitors the
selection process for members of the Board of Directors
and the Executive Board and determines the overall remuneration
and terms of employment for members of the
Board of Directors and the Executive Board as well as for
highly compensated employees. Regarding the compensation
of the members of the Executive Board (overall
remuneration including target bonus), the Committee makes
a decision subject to the final approval of the Board of
Directors, whereas the application for the compensation
of the Board members is prepared and submitted to the
Board of Directors. The Committee each year decides on
the bonus compensation for the CEO and the other members
of the Executive Board for the previous year based on
recommendations of the Chairman (for the CEO) and the

CEO (for other Executive Board members). Furthermore,
the Committee regularly reviews the Group’s proposed
management share and option programs and submits
proposals to the Board of Directors. Moreover, it approves
concepts and policies for the Group’s management performance
assessment, succession planning and expat
programs. During the reporting year, the Compensation and
Nomination Committee held three meetings of approximately
two hours each. The Executive Board was regularly
represented at these meetings by the CEO, the Chief HR
Officer and the Corporate Secretary.
The Legal and Compliance Committee consists of the following
members of the Board of Directors: Rudolf W. Hug
(Chairman) and Roger Schmid. It oversees the company’s
handling of major legal matters, in particular, the ongoing
governmental investigations against the company and
related proceedings as well as the development of the company’s
compliance policies and procedures. During the
reporting year, the Committee has held 22 meetings or
telephone conferences with the participation of outside
counsel. The Executive Board was represented at these
conferences by the CEO, the CFO and the Corporate
S e c r e t a r y.
The Committees generally meet prior to Board of Directors
meetings. The chairmen of the committees inform and
update the Board of Directors on the topics discussed and
decisions made during such meetings. They submit proposals
for approval related to decisions that fall within the
scope of the Board of Directors.
Objectives, organization, duties and the cooperation with
the Board of Directors are defined in the Terms of Reference
of the respective committees which are reviewed and
adopted by the Board of Directors.
The overall responsibility of the Board of Directors is not
affected by these committees.
3.5.3 Working methods of the Board of Directors and
its committees
During the reporting year, the Board of Directors held four
full-day meetings and one two-day meeting. The Executive
Board was represented by the CEO, the CFO, the COO
and the Corporate Secretary at these meetings. In urgent
cases, telephone conferences or decisions by circular may
be organized in order for decisions to be taken.
At every meeting, the Executive Board updates the Board of
Directors on business and key financial developments and
main regional development. On a quarterly basis, detailed
consolidated financial statements on the group, regional
and business segment levels are reported to the Board of
Sustainable Growth
Directors in accordance with IFRS standards. The Board
of Directors is furnished in time with an agenda, detailed
meeting documentation related to topics on the agenda
and minutes.
3.6 Definition of areas of responsibility
In line with the law and the Articles, the Board of Directors
has transferred the responsibility to develop and implement
the group strategy, as well as the responsibility to supervise
business and financial development of the Group’s
subsidiaries, to the Executive Board.
The Organizational Regulations adopted by the Board of
Directors govern the cooperation between the Board
of Directors, the Chairman and the Executive Board. It contains
a detailed catalogue of duties and competencies
which determine the financial thresholds within which the
Board of Directors and the Executive Board can efficiently
execute their daily business. The Organizational Regulations,
which are accessible on Panalpina’s Web site, also
outline the reporting duties of the Executive Board on
Group and Holding level.
The main responsibilities of the Board of Directors on Group
level include the determination of the business strategy
on the basis of the proposals of the Executive Board, the
approval of major Group policies and organizational structures
including topics related to Corporate Governance
and Compliance, the approval of the annual operational and
investments budgets, the approval of any extraordinary
additional investment applications as well as financial planning.
Further responsibilities include decisions regarding
mergers and acquisitions and major human resources and
remuneration decisions following recommendations and
preparatory work of its Compensation and Nomination
Committee.
3.7 Information and control instruments
vis-à-vis the senior management
The Executive Board informs the Board of Directors of
business developments in a written format on a monthly
basis and a detailed update is provided at each Board
of Directors meeting. Elements of this reporting include
monthly financial reports, consolidated quarterly regional
and business segment results according to IFRS (with
actual figures, previous years’ figures, quarter results and
budget figures as well as a comparison with the financial
guidance), the reporting of business development in all
regions and business segments (including focus on problematic
organizations), the development of shipments,
volumes and tonnages, the debtors’ and creditors’ reports
(including DSO / DPO) as well as the net working capital.
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Further information regarding personnel and organizational
changes, extraordinary events and the activities of analysts,
investors and competitors form part of the regular reporting.
Moreover, the Board of Directors annually reviews and
approves the Group’s targets for the individual regions and
business segments and adopts the respective report of
the Executive Board.
The Chairman of the Board of Directors occasionally
attends Executive Board meetings and regularly receives
the minutes of the Executive Board meetings. The CEO
and individual members of the Executive Board regularly
join meetings of the Board of Directors as well as meetings
of its committees. In addition, individual Executive Board
members and other senior executives attend specific topic
discussions pertaining to their particular field of expertise
when required. Furthermore, specific meetings of the
Board of Directors are dedicated to a detailed review of
major markets, business segments and the Group’s development
according to predefined schedule. For further
details please refer to sections 3.5.2 and 3.5.3. The Audit
Committee of the Board of Directors monitors and
assesses the activities of the Corporate Auditor as well as
his cooperation with the Group Auditor.
The Audit Committee receives the Corporate Auditor’s
half-year reports and also adopts the comprehensive
annual risk map of the Executive Board. The Audit Committee
approves the proposed risk control and risk mitigation
measures as well as the annual planning / scope of
the internal audit, which also is also based on the Risk Map.
For further details please refer to section 3.5.2.
4 Executive Board
4.1 Members of the Executive Board
The biographies of the Executive Board members are as
follows:
Monika Ribar, CEO, Swiss citizen. Born in 1959.
Member of the Executive Board since 2000 and CEO
since October 2006.
Monika Ribar joined the Group in 1991. She held several
positions within the Group’s controlling, IT and global
project management departments. From 2000 to 2005,
she held the position of the CIO (Chief Information Officer)
of the Group and was member of the Executive Board.
In 2005, Monika Ribar was appointed as CFO of the Group
and her appointment as CEO was announced in June 2006.
She officially took office as CEO in October 2006. Apart
from individual Executive Board members, the Heads of
Panalpina Annual Report 2009
Corporate Communications, Corporate Compliance, Corporate
Development and Corporate IT also report directly
to her. She holds a university degree in Finance and Controlling
from the University of St. Gallen. She participated in
the Executive Program of the Graduate School of Business
at Stanford University, Palo Alto, California in 1999.
Marco Gadola, Chief Financial Officer, Swiss citizen.
Born in 1963. Joined Panalpina as a member of the
Executive Board in September 2008. Responsible for
Corporate Finance, Controlling and Investor Relations.
Marco Gadola is a finance and economics expert with
many years’ experience in international companies. Before
joining Panalpina he was Group CFO and Executive Vice
President Operations of Straumann Holding, a world-leading
Swiss-based dental and oral technology company;
prior to that he was Group CFO of the Swiss-based international
consumer foods company Hero. He also held
leading management positions at the Hilti Group, which
manufactures and sells products for the construction and
building industries. Furthermore, both at Straumann and
at Hero Marco Gadola oversaw production, logistics, investor
relations and information technology worldwide, and
played a leading part in the acquisition and integration of
companies.
Marco Gadola has a Masters Degree in Business Administration
and Economics from the University of Basel
(Switzerland). He also completed the Accelerated Management
Development Programme at the London School of
Economics.
Christoph Hess, General Counsel and Corporate Secretary,
Swiss citizen. Born in 1955. Member of the Executive
Board since October 2006. Responsible for Corporate
Legal Services and Insurance.
Christoph Hess joined the Group’s head office in 1994 as
Secretary of the Board of Directors and the Executive
Board. In this capacity he also manages both the Group’s
Legal and Insurance departments. He also managed
Corporate Communications until August 2008. Christoph
Hess holds a degree in law from the University of Basel
and has been admitted to the bar in Switzerland.
Sandro Knecht, Chief Marketing and Sales and Supply
Chain Management Officer, Swiss Citizen. Born in 1966.
Member of the Executive Board since April 2008. Responsible
for Global Key Account Management, Key Industry
Verticals, Supply Chain Management and Marketing and
Customer Relationship Management.

Sandro Knecht joined the Group in 1982 for an apprenticeship
at Panalpina Zurich and graduated in 1985 from the
Zurich Business School. Thereafter he completed an internship
at Panalpina Bradford, UK. He had his first management
assignment as Marketing and Sales Executive from
1987 to 1989 at Panalpina Switzerland. Between 1989 and
2000, he worked for Panalpina USA as Assistant Vice
President and Marketing and Sales Manager for Panalpina
Greenville / Spartanburg. In 1993, he was promoted to
Vice President and Business Unit Manager for Panalpina
Atlanta. From 2000 to 2006, he acted as Managing Director
for Panalpina United Kingdom and Ireland based in
London. In January 2007, he was promoted to Regional
CEO Europe and Member of the Global Management
Board. He completed senior management courses with
Krauthammer International in New York and Washington
DC, and completed the “Managing Corporate Resources”
program at IMD Lausanne.
Alastair Robertson, Chief Human Resources Officer,
British citizen. Born in 1960. Member of the Executive
Board since April 2008. Responsible for Human
Resources.
Alastair Robertson joined the Group in 2007 as Head of
Global Human Resources. Before joining Panalpina he
had been a Vice President at Tetra Pak since 1996, where
he held various positions in the field of Human Resources:
between 1999 and 2001 as Vice President Human
Resources Americas and from 2002 to 2004 as Vice President
Human Resources Europe and Africa. From 1992 to
1996, he worked for W. H. Smith in the field of Personnel,
Development and Training and between 1989 and 1992 he
was with Graham Builders Merchants as Manager Human
Resources Management, Training and Development. He
previously served in the military, where he attained the rank
of Major and served in numerous countries. Alastair Robertson
holds an MBA in Strategy and Marketing from the University
of Huddersfield, Bradford (UK). He also attended
the Royal School of Military Engineering, UK and the Royal
Military Academy, UK.
Dominik Tichelkamp, Chief Product and Procurement
Officer, German citizen. Born in 1963. Member of the
Executive Board since April 2008. Responsible for Air
Freight, Ocean Freight and Overland Transport.
Dominik Tichelkamp joined the Group in 2006 as Head
of Corporate Ocean Freight at our headquarters in Basel,
Switzerland. Before joining Panalpina he was Managing
Director with Volkswagen Transport from 2004 to 2006,
where he started his automotive career in 1991 as Assistant
to the Management of the Volkswagen Transport team in
Wolfsburg, Germany. From 1992 to 1994, he worked as
Sustainable Growth
Transport Manager with Volkswagen de México. Upon his
return to Wolfsburg he managed the Material Transports
Europe division until 1996 after which he took over the
responsibility for Material Transports Worldwide. From 2000
to 2004 he was Director Logistics with Audi Hungaria Kft
in Györ / Hungary. Prior to his studies from 1989 to 1991 he
held a position as a liner agent with Nedlloyd Lines, based
in London (UK) after having completed his apprenticeship
as a ship broker in Bremen. Dominik Tichelkamp holds a
degree in transportation and economics from the German
Foreign Trade and Transport Academy eV (DAV), Bremen
(Germany).
Karl Weyeneth, Chief Operating Officer, Swiss citizen.
Born in 1964. Member of the Executive Board since April
2008. Responsible for worldwide Operations, Security
and HSE, Business Processes and Quality, Agent Relations
and Panprojects.
Karl Weyeneth joined the Group in 2007 as Regional CEO
for North America, where he was responsible for the
development and results of the subsidiaries in USA and
Canada. He is a professional with 15 years’ leadership
and management expe rience in logistics, including freight
management, 3PL and contract logistics. Before joining
Panalpina he was President and CEO Americas of Hellmann
Worldwide Logistics, Inc. (USA) and prior to this he was
Executive Vice President and CFO of Danzas Management
Latin America (USA), where he attained profound experience
in all finance matters. He holds a Bachelor in Economics
and Business Administration from the University of Berne,
Switzerland.
4.2 Other activities and vested interests
Monika Ribar: Member of the Board of Directors of Bank
Julius Bär Ltd., Zurich; Member of the Board of Directors
of Logitech International SA, Romanel / Morges.
4.3 Management contracts
No management contracts exist with any third party
outside the Group.
Panalpina Annual Report 2009
73

74
Sustainable Growth
5 Compensation, shareholdings and loans
5.1 Content and method of determining
the compensation and the share-ownership
programs
The compensation and principles governing the Board of
Directors Stock Award Plan, the Executive Board mid- and
long-term incentive plans and the share and option program
for other senior management (excluding the Executive
Board) are determined and approved by the Board of
Directors based on the proposal of the Compensation and
Nomination Committee. Further the Committee regularly
updates the Board of Directors during the Board of Directors
meetings, applies for changes in the remuneration
system as required and annually reports the bonus allocation
of individual Executive Board members. Members of
the Executive Board do not attend respective discussions
regarding decisions related to their own remuneration.
Remuneration of the Executive Board members and other
500 executive positions is based on a job and salary banding
which is itself the result of multiple market data surveys
compiled through four leading global HR consultants from
a normative group of companies comparable by size and
geographical reach. The identities of these companies are
not disclosed to Panalpina.
The members of the Board of Directors receive a fixed
annual compensation. Moreover and introduced in 2009
(reflecting fiscal 2008), part of each Board member’s
remuneration is in free shares of the company to the value
of CHF 50,000. The corresponding number of shares are
based on the share’s closing price on 30 April and have a
one-year restriction period. This Stock Award Plan has
replaced the former share and option program for Board
members.
The salary package for the members of the Executive Board
consists of a fixed basic salary, lump sum vehicle and general
expense allowances, additional pension contributions
and a target bonus. 50% of the target bonus depends on
various Group Key Performance Indicators (KPIs), such as
development of group gross profit, Days Sales Outstanding
(DSO), cargo volumes, EBITDA margin and Net Working
Capital intensity, while 50% depends on the achievement
of measurable individual performance targets. Individual
performance targets are defined for the CEO by the Chairman
and for other Executive Board members by the CEO.
Each Executive Board member is subject to a formal
performance appraisal process. For each reporting year
performance targets are jointly determined and a year-end
performance assessment is carried out. The maximum
target bonus of the CEO equals 100% of the annual basic
Panalpina Annual Report 2009
salary, whereas maximum target bonuses of other Executive
Board members equal between 50% and 67% of their
respective annual basic salaries depending on their function.
All bonus payments are cut if the respective group or
individual performance targets have not been reached.
For 2009 the Compensation and Nomination Committee
has reduced group bonus (50% of overall target bonus) for
Executive Board members to zero.
The Compensation and Nomination Committee annually
reports to the Board of Directors on bonus payments to
the members of the Executive Board.
In the reporting year, the target bonus scheme for Executive
Board members (reflecting fiscal 2008) has been
adjusted to focus on the Company’s sustainable mid- and
long-term success. Only 60% of the bonuses – which continue
to be set by the achievement of annually reviewed
Group KPI’s and individual performance targets – is paid
out in cash whereas the remainder is paid out in company
shares based on the share’s closing price on 30 April with
a restriction period of one year. This number of shares
will be matched by the company after this restriction period
and has been fixed for a three-year period (i.e. 2010 to
2012). These shares are also subject to a one-year restriction
period. Furthermore, a long-term incentive plan has
been introduced which rewards long-term value creation
measured by economic profit. Under this plan, which has
a five-year cycle up until and including fiscal 2013, the
individual Executive Board member is entitled to an equal
share of the respective pool after the expiry of the five-year
plan period.
Due to the introduction of a new share program for the
members of the Board of Directors and the Executive Board
in the reporting year, neither the members of the Board
of Directors nor the members of the Executive Board are
eligible to participate in the company’s share and option
program, which have been outlined in previous Corporate
Governance Reports.
Employment agreements with Executive Board members
stipulate a notice period of 12 months. They do not contain
“golden parachutes” in case of a change of control nor
severance payments after termination of employment.
Further information related to both overall and individual
remuneration of the Board of Directors and Executive
Board members as well as shares and options held by
these persons at the closing date including a comparison
with the previous year are reflected in the audited Notes
to the Consolidated Financial Statements (pages 133 –135)
according to article 663 bbis CO.

Except for the above-mentioned share award plan, the
remuneration of the Board of Directors has not changed
in comparison to the previous year. The remuneration
of the CEO has been reduced due to the aforementioned
decrease in group bonus, which also affected all other
Executive Board members. The overall remuneration of the
other Executive Board members cannot be compared
with the previous year as five members joined the Executive
Board in May and September of the previous year.
6 Shareholders’ participation
6.1 Voting rights and representation restrictions
Each share carries one vote at the General Meeting of
Shareholders. The Articles state that when exercising voting
rights, no shareholder may directly or indirectly represent
more than 5% of the total shares issued by the Company
for own and represented shares.
The Articles provide for group clauses.
The voting right restrictions are not applicable to representatives
of the corporate body (Organvertreter) as well as
the independent proxy holder of voting rights (Unabhängiger
Stimmrechtsvertreter). In order to facilitate the exercise of
voting rights of deposited shares, the Board of Directors is
entitled to enter into agreements with banks which deviate
from the voting restrictions.
The voting restrictions do not apply to the shares held by
the Ernst Göhner Foundation, because it held PWT shares
prior to the introduction of the voting restrictions (grandfathering).
Any abolition or change of the provisions relating to the
restrictions on voting rights requires a resolution of
the General Meeting of Shareholders on which at least
two-thirds of the voting shares represented agree.
A written proxy entitles a shareholder to be represented
at the General Meeting of Shareholders by his / her legal
representative, or by another shareholder with the right to
vote, or by the representative of the corporate body
(Organvertreter), or by the independent proxy holder of
voting rights (unabhängiger Stimmrechtsvertreter) or
by the proxy holder of deposited shares (Depotvertreter).
Sustainable Growth
6.2 Statutory quorums
In principle, the legal rules on quorums apply. Supplementary
to the quorums legally listed, a two-thirds majority
of the shares represented at the General Meeting of Shareholders
is required for the following resolutions:
• any abolition or change of the provisions relating to
transfer restrictions;
• any abolition or change of the provisions relating to the
restriction of voting rights;
• the transformation of registered shares into bearer
shares;
• the dissolution of the company by way of liquidation;
• the removal of two or more members of the Board of
Directors;
• the abolition of the respective provision in the Articles as
well as the repeal or relief of the stated quorum. A resolution
to increase the quorum as set forth in the Articles
must be based on the consent of the increased quorum.
6.3 Convocation of the General Meeting
of Shareholders
There are no provisions deviating from the law.
6.4 Agenda
Shareholders who individually or together with other
shareholders represent shares in the nominal value of
CHF 1 million may request that an item be placed on
the agenda. Such request must be made in writing to
PWT at least 60 days prior to the General Meeting of
Shareholders.
6.5 Inscriptions into the share register
Registered shares can only be represented by shareholders
(or nominees) who have been entered into the PWT
share register. Shareholders (or registered nominees) who
cannot personally attend the General Meeting of Shareholders
are entitled to nominate a representative according
to the provisions in the Articles, who represents them by
written proxy.
For the purpose of determining voting rights, the share
register is closed for registration from the date upon which
the General Meeting of Shareholders has been called
(date of invitation) until the day after the General Meeting of
Shareholders has taken place.
Panalpina Annual Report 2009
75

76
Sustainable Growth
7 Changes of control and defense measures
7.1 Duty to make an offer
No opting-out or opting-up provisions exist.
7.2 Clauses on changes of control
Neither the contracts of the members of the Board of
Directors nor of the Executive Board have a change-ofcontrol
clause.
8 Auditors
8.1 Duration of the mandate and term of office
of the lead auditor
The mandate to act as statutory and Group Auditors is
assumed by KPMG, Zurich.
The lead auditor, Regula Wallimann, took up office on
6 May 2008 for a seven-year term.
8.2 Auditing fees
According to financial accounting, invoices for auditing
fees for the financial year amounted to TCHF 3,600.
8.3 Additional fees
The auditors KPMG were compensated an additional
amount of TCHF 497 for further services rendered
in the financial year. KPMG was mandated in the reporting
year in particular for tax consulting (TCHF 347) and transaction
consulting (TCHF 150).
8.4 Informational instruments pertaining
to the external audit
The Group Auditors are supervised and controlled by the
Audit Committee. The Group Auditors report to the Audit
Committee and periodically the lead auditor participates in
the meetings. During these meetings, the Group Auditors
present a detailed audit plan for the current year including
risk based audit priorities, the audit scope, proposals
regarding audit fees, organization and timing as well as
updates and status of the results of the Internal Control
System (ICS). In subsequent meetings they present interim
audit findings with respective statements and recommendations
later followed by a detailed audit report. Presentations
also contain references to upcoming changes in
legislation and IFRS standards. The main criteria for the
selection of Group Auditors include independence, network
capabilities, industry and IT experience of the audit team,
Panalpina Annual Report 2009
a risk-based audit approach, a central process management
as well as the integration of Corporate Audit and
risk management functions. The Audit Committee annually
assesses the performance of the Group Auditors and
determines the audit fees (refer to section 3.5).
9 Information policy
Panalpina regularly updates its Internet Web site at
www.panalpina.com, informing the public of any major
events, organizational changes and (quarterly) financial
results. Press releases are accessible to all visitors to the
Web site; alternatively, subscriptions can be made so that
the latest press releases are automatically forwarded via
e-mail. Furthermore, all publications such as the Annual
Report (including the Corporate Governance and Compensation
Report), customer magazine and sales brochures
are available online. The dates of the General Meeting of
Shareholders as well as dates of publication of the quarterly
financial results are printed in the Annual Report and
appear in the Financial Calendar on the Web site (under
Investor Relations). The minutes of shareholder meetings
are available online.
www.panalpina.com / corpgov

Global Reporting Initiative
Integrated sustainability reporting in line with
international GRI standard
Sustainable Growth
At Panalpina, sustainability is an integral part of successful, long-term-focused corporate
management. To inform shareholders, customers, employees and others about
the company’s sustainability performance in a transparent manner, Panalpina’s Annual
Report 2009 complies with the guidelines of the Global Reporting Initiative (GRI).
For the third year in a row, the Panalpina Annual Report
has applied the current G3 version of the GRI guidelines –
the world’s leading voluntary standard on corporate sustainability
reporting. The main goal of the GRI, a nonprofit
organization, is to create a framework for systematic and
transparent sustainability reporting by corporations in
a format that is standardized and therefore comparable.
To this end, the GRI is committed to a continual international
dialogue involving a large number of stakeholders
on experiences with applying the current guidelines for
sustainability reporting and on ways to further refine them.
Notes on this report
This Annual Report covers the business year 2009. While
the report makes certain comparisons to previous years
in order to illustrate developments at the Panalpina Group
and its business environment in general, the data provided
relate to the year 2009 and to the entire Panalpina Group
unless explicitly noted otherwise. Key criteria for the inclusion
of various GRI items is, first, their relevance to Panalpina
within the framework of the Annual Report – which aims to
provide shareholders and other stakeholders with a fair
picture of the company’s 2009 performance – and second,
the availability of corresponding data. Reporting of included
indicators complies with the GRI guidelines as much as data
availability allows. In relation to environmental data, where
in previous years only incomplete data for parts of the company
could be obtained, a new Group-wide system of data
collection allows for the first time systematic reporting on
environmental performance for the operations of the whole
Panalpina Group.
Apart from this extension of environmental data monitoring,
no reporting changes were made that would materially
impact comparisons relating to GRI topics. Furthermore,
unless explicitly noted otherwise, in the year under review
there were no major changes regarding sustainability
matters in subsidiaries, leased facilities or outsourced operations
that significantly affect comparability with information
disclosed in the previous year’s report (for information
on subsidiary companies, see the Financial Report,
pages 138 –140).
GRI check confirms C-level application
This Annual Report, together with the supplementary document
– the Annotated Index of GRI Content, published
online at www.panalpina.com/gri – meets the requirements
of the GRI G3 Reporting Guidelines for application level C.
This has been verified and confirmed by the GRI.
www.panalpina.com / gri
Panalpina Annual Report 2009
77

Consolidated and Annual
Financial Statements 2009

Contents
Consolidated Financial Statements 2009
Consolidated Income Statement 80
Consolidated Statement of Comprehensive Income 81
Consolidated Statement of Financial Position 82
Consolidated Statement of Changes in Equity 83
Consolidated Statement of Cash Flows 85
Notes to the Consolidated Financial Statements 86
Principal Group Companies and Participations 138
Report of the Group Auditors 141
Key Figures five-year review in CHF 142
Balance Sheet five-year review in CHF 144
Key Figures five-year review in EUR 145
Balance Sheet five-year review in EUR 147
Annual Financial Statements 2009 of
Panalpina World Transport (Holding) Ltd.
Income Statement 150
Balance Sheet as of 31 December
(before profit appropriation) 151
Notes to the Financial Statements 153
Appropriation of Available Earnings 156
Report of the Statutory Auditors 157
Information for Investors 158

80
Consolidated and Annual Financial Statements 2009
Consolidated Income Statement
for the years ended 31 December 2009 and 2008
in thousand CHF Notes 2009 2008
Forwarding services 7,340,327 10,597,121
Customs, duties and taxes (1,382,414) (1,719,472)
Net forwarding revenue 5 5,957,913 8,877,649
Forwarding services from third parties 5 (4,581,020) (7,136,052)
Gross profit 5 1,376,893 1,741,597
Personnel expenses 6 (879,142) (992,495)
Other operating expenses 9 (418,518) (509,251)
Gains on sales of non-current assets 10 495 877
EBITDA 79,728 240,728
Depreciation of property, plant and equipment 14 (37,224) (36,054)
Amortization of intangible assets 15 (10,771) (11,693)
Impairment of financial assets 0 (4)
Goodwill impairment 15 (1,823) 0
Operating result (EBIT) 29,910 192,977
Finance income 11 6,612 14,953
Finance costs 11 (22,653) (43,512)
Profit before income tax (EBT) 13,869 164,418
Income tax expenses 12 (3,426) (50,649)
Consolidated profit 10,443 113,769
Consolidated profit attributable to:
Owners of the parent 8,492 112,722
Non-controlling interests 24 1,951 1,047
Earnings per share (in CHF per share)
Basic 13 0.36 4.70
Diluted 13 0.36 4.70
The notes on pages 86 to 140 are an integral part of these consolidated financial statements.
Panalpina Annual Report 2009

Consolidated and Annual Financial Statements 2009
Consolidated Statement of Comprehensive Income
for the years ended 31 December 2009 and 2008
in thousand CHF Notes 2009 2008 1
Consolidated profit 10,443 113,769
Other comprehensive income
Available-for-sale financial assets 16 (943) 0
Amounts recognized in equity for defined benefit post-employment plans
– Actuarial gains (losses) 7 18,908 (35,169)
– Effect from asset ceiling 7 0 5,753
– Exchange difference 7 6 458
Other long-term employee benefits
– Defined benefit obligation jubilee 0 (1,704)
Exchange difference on translations of foreign operations 9,416 (71,666)
Income tax on components of other comprehensive income 12 (4,465) 7,387
Other comprehensive income for the period, net of tax 22,922 (94,941)
Total comprehensive income for the period 33,365 18,828
Attributable to owners of the parent 31,498 17,938
Attributable to non-controlling interests 24 1,867 890
1 Certain comparatives have been reclassifi ed to conform to the current period’s presentation.
The notes on pages 86 to 140 are an integral part of these consolidated financial statements.
Panalpina Annual Report 2009
81

82
Consolidated and Annual Financial Statements 2009
Consolidated Statement of Financial Position
as at 31 December 2009 and 2008
Assets
in thousand CHF Notes 2009 2008
Non-current assets
Property, plant and equipment 14 141,273 147,696
Intangible assets 15 71,877 73,733
Investments 16 37,404 37,823
Derivative financial instruments 21 5,561 0
Post-employment benefit assets 7 14,444 0
Deferred income tax assets 27 55,339 32,614
Total non-current assets 325,898 291,866
Current assets
Other receivables and other current assets 19 110,422 84,001
Unbilled forwarding services 83,103 116,198
Trade receivables 20 856,872 1,077,625
Derivative financial instruments 21 5,725 38,755
Other current financial assets 22 10,809 0
Cash and cash equivalents 22 531,803 362,409
Total current assets 1,598,734 1,678,988
Total assets 1,924,632 1,970,854
Liabilities and equity
in thousand CHF Notes 2009 2008
Equity
Share capital 23 50,000 50,000
Treasury shares 23 (192,567) (197,753)
Reserves 999,131 1,011,469
Total equity attributable to owners of the parent 856,564 863,716
Non-controlling interests 24 7,015 7,632
Total equity 863,579 871,348
Non-current liabilities
Borrowings 25 891 2,647
Provisions 26 66,658 75,770
Post-employment benefit liabilities 7 39,126 42,920
Deferred income tax liabilities 27 21,915 19,445
Total non-current liabilities 128,590 140,782
Current liabilities
Trade payables 519,596 500,995
Other payables and accruals 122,823 142,897
Accrued cost of services 159,712 168,617
Borrowings 25 11,995 17,642
Derivative financial instruments 21 2,233 14,894
Provisions and other liabilities 28 103,371 91,677
Current income tax liabilities 12,733 22,002
Total current liabilities 932,463 958,724
Total liabilities 1,061,053 1,099,506
Total equity and liabilities 1,924,632 1,970,854
The notes on pages 86 to 140 are an integral part of these consolidated financial statements.
Panalpina Annual Report 2009

Consolidated Statement of Changes in Equity
for the year ended 31 December 2009
in thousand CHF Notes
Share
capital
Consolidated and Annual Financial Statements 2009
Attributable to the owners of the parent Noncontrolling
interests
Treasury
shares
Other
reserves
Translation
reserve
Retained
earnings Total
Balance on 1 January 2009 50,000 (197,753) (117,423) (145,973) 1,274,865 863,716 7,632 871,348
Consolidated profit 8,492 8,492 1,951 10,443
Available-for-sale financial assets 16 (943) (943) (943)
Total
equity
Amounts recognized in equity for
defined benefit post-employment plans
– Actuarial gains (losses) 7 18,908 18,908 18,908
– Exchange difference
Exchange difference on translations
7 6 6 6
of foreign operations
Income tax on components
9,500 9,500 (84) 9,416
of other comprehensive income
Total comprehensive income
12 (4,465) (4,465) (4,465)
for the period 0 0 13,506 9,500 8,492 31,498 1,867 33,365
Dividends paid
Share-based payments –
23 (44,895) (44,895) (290) (45,185)
employee share plan
Share-based payments –
8 2,461 2,461 2,461
option plan 8 1,793 1,793 1,793
Changes in treasury shares, net 23 5,186 (5,389) (203) (203)
Acquired non-controlling interests 24 2,194 2,194 (2,194) 0
Balance on 31 December 2009 50,000 (192,567) (101,723) (136,473) 1,237,327 856,564 7,015 863,579
The notes on pages 86 to 140 are an integral part of these consolidated financial statements.
Panalpina Annual Report 2009
83

84
Consolidated and Annual Financial Statements 2009
Consolidated Statement of Changes in Equity
for the year ended 31 December 2008
in thousand CHF Notes
Panalpina Annual Report 2009
Share
capital
Attributable to the owners of the parent Noncontrolling
interests
Treasury
shares
Other
reserves
Translation
reserve
Retained
earnings Total
Balance on 1 January 2008 50,000 (101,397) (95,330) (74,464) 1,240,329 1,019,138 6,638 1,025,776
Consolidated profit 112,722 112,722 1,047 113,769
Total
equity
Amounts recognized in equity for
defined benefit post-employment plans
– Actuarial (losses) gains 7 (35,169) (35,169) (35,169)
– Effect from asset ceiling 7 5,753 5,753 5,753
– Exchange difference
Other long-term employee benefits
7 458 458 458
– Defined benefit obligation jubilee
Exchange difference on translations
(1,704) (1,704) (1,704)
of foreign operations
Deferred income taxes related to
components of other comprehensive
(71,509) (71,509) (157) (71,666)
income
Total comprehensive income
12/27 6,969 418 7,387 7,387
for the period 0 0 (21,989) (71,509) 111,436 17,938 890 18,828
Dividends paid
Share-based payments –
23 (77,103) (77,103) (77,103)
employee share plan
Share-based payments –
8 1,251 1,251 1,251
option plan 8 1,850 1,850 1,850
Changes in treasury shares, net 23 (96,356) (2,898) (99,254) (99,254)
Acquired non-controlling interests 24 (104) (104) 104 0
Balance on 31 December 2008 50,000 (197,753) (117,423) (145,973) 1,274,865 863,716 7,632 871,348
The notes on pages 86 and 140 are an integral part of these consolidated financial statements.

Consolidated Statement of Cash Flows
for the years ended 31 December 2009 and 2008
Consolidated and Annual Financial Statements 2009
in thousand CHF Notes 2009 2008 1
Profit for the period 10,443 113,769
Income tax expenses 12 3,426 50,649
Depreciation of property, plant and equipment 14 37,224 36,054
Amortization of intangible assets 15 10,771 11,693
Goodwill impairment charge 15 1,823 0
Impairment of financial assets 0 4
Finance income 11 (6,612) (14,953)
Interest expenses 11 15,192 22,560
Exchange differences 11 2,153 13,258
(Gain) on sales of property, plant and equipment 10 (495) (877)
Adjustment of net expenses for defined benefit plans 996 1,755
Equity-settled share-based payment transactions 8 5,697 3,101
Other non-cash expenses 1,338 0
Working capital adjustments:
81,956 237,013
Decrease receivables and other current assets 219,800 67,716
Decrease payables, accruals and deferred income (5,784) (29,003)
(Decrease) long-term provisions (8,728) (5,809)
Increase short-term provisions and other liabilities 24,516 4,566
Cash generated from operations 311,760 274,483
Interest paid (8,937) (22,685)
Income taxes paid (43,060) (58,592)
Net cash from operating activities 259,763 193,206
Interest received 14,977 11,261
Dividends received 11 228 804
Proceeds from sales of PPE and assets held for sale 3,883 11,155
Proceeds from sales of securities 239 0
Loan and receivables repayments 2,643 2,360
Repayment of other financial assets 4,834 21,606
Purchase of property, plant and equipment (33,263) (48,816)
Purchase of intangible assets and other assets (9,420) (12,734)
Purchase of investments held for trading (10,906) 0
Purchase of other financial assets (7,086) (8,659)
Net cash flows from investing activities (33,871) (23,023)
Free cash flow 225,892 170,183
Proceeds of short- and long-term borrowings 862 13,363
Repayment of short- and long-term borrowings (12,705) (21,482)
Dividends paid 23 (44,895) (77,103)
Dividends paid to non-controlling interests 24 (290) 0
Purchase of non-controlling interests 30 (268) 0
Purchase of treasury shares (3,259) (104,836)
Sale of treasury shares 3,331 8,480
Net cash used in financing activities (57,224) (181,578)
Effect of exchange rate changes on cash and cash equivalents 726 22,293
Net increase (decrease) in cash and cash equivalents 169,394 10,898
Cash and cash equivalents at the beginning of the year 362,409 351,511
Cash and cash equivalents at the end of the year 22 531,803 362,409
1 Certain comparatives have been restated to conform to the current period’s presentation.
The notes on pages 86 to 140 are an integral part of these consolidated financial statements.
Panalpina Annual Report 2009
85

86
1
2
Consolidated and Annual Financial Statements 2009
Notes to the Consolidated Financial Statements
General information
Panalpina World Transport (Holding) Ltd. (referred hereafter as the “Company”) and its subsidiaries is one of the world’s leading providers
of forwarding and related logistics services, specializing in intercontinental air freight and ocean freight and associated supply chain
management solutions. Thanks to its in-depth industry know-how and state-of-the-art IT systems, Panalpina provides globally integrated
door-to-door forwarding solutions tailored to its customers’ individual needs.
Panalpina World Transport (Holding) Ltd. is a limited company incorporated and domiciled in Basel. The registered address is Viaduktstrasse
42, 4002 Basel, Switzerland. The Company shares are publicly traded and its primary listing is on the SIX Swiss Exchange in Zurich.
The consolidated financial statements for the year ending 31 December 2009 were authorized for issuance in accordance with a resolution
by the Board of Directors on 5 March 2010.
Summary of significant accounting policies
Restatement Statement of Cash Flows
In the past the Group erroneously assigned additional currency impacts such as differences between average and closing rate in the line
item “effect of exchange rate changes on cash and cash equivalents.”
To be in compliance with IAS 7.28, the Group extracted all exchange differences which are not part of cash and cash equivalents from
the above-mentioned line item and assigned it to the corresponding cash flow position. The impact on the subtotals of the statement of
cash flows 2008 is as follows:
in thousand CHF
Panalpina Annual Report 2009
Adjusted 2008
Statement of
Cash Flows
2008
Statement of
Cash Flows
Cash generated from operations 274,483 279,579
Net cash from operating activities 193,206 209,563
Net cash flows from investing activities (23,023) (31,931)
Free cash flow 170,183 177,632
Net cash used in financing activities (181,578) (180,744)
Effect of exchange rate changes on cash and cash equivalents 22,293 14,040
(single line items are disclosed in the consolidated statement of cash fl ows).
Basis of preparation of the consolidated financial statements
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. The consolidated
financial statements of the Company as at and for the year ended 31 December 2009 comprise the Company and its affiliates (together
referred to as the “Group” and individually as “Group entities”).
Statement of compliance
The consolidated financial statements are based on the accounts of the individual subsidiaries on 31 December, which have been drawn
up according to uniform Group accounting principles. The consolidated accounts have been prepared in accordance with the International
Financial Reporting Standards (IFRS) and interpretations thereof adopted by the International Accounting Standards Board (IASB), and
comply with Swiss law.
Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for derivative financial instruments, financial
instruments at fair value through profit or loss, available-for-sale financial assets which have been measured at fair value and liabilities
for cash-settled share-based payment arrangements. Defined benefit assets are recognized at the net total of the plan assets plus unrecognized
past-service costs and unrecognized actuarial losses and the present value of the defined benefit obligation.
The methods used to measure fair values are discussed further in note 3.

Functional and presentation currency
Consolidated and Annual Financial Statements 2009
The consolidated financial statements are presented in Swiss francs (CHF) and all values are rounded to the nearest thousand except
when otherwise indicated.
Use of estimates and judgments
The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates, judgments and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities as well as the disclosure of contingent liabilities
on the date of the financial statements.
It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. Actual results may differ
from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Deviations from estimates and judgments
are recognized in the period in which the estimates are revised and in any future periods affected.
The areas involving a higher degree of judgment or complexity, or areas in which assumptions and estimates are significant to the consolidated
financial statements, are disclosed in note 4.
3
Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements,
and have been applied consistently by Group entities, unless otherwise stated. If necessary, comparative amounts have been reclassified
to conform with the current year’s presentation.
Effective from 1 January 2009, the Group adopted the newly issued IFRSs and IFRIC interpretation or amendments:
IFRS 1 (amendment) “First-time Adoption of IFRS” and IAS 27 “Consolidated and Separate Financial Statements”
The amended standard allows first-time adopters to use a deemed cost of either fair value or the carrying amount under the previous
accounting practice to measure the initial cost of investments in subsidiaries, jointly controlled entities and associates in the separate
financial statements. The amendment also removes the definition of the cost method from IAS 27 and replaces it with a requirement to
present dividends as income in the investor’s separate financial statements.
IFRS 2 (amendment) “Share-based Payment”
The amended standard clarifies the definition of vesting conditions and prescribes the treatment for an award that is cancelled. The Group
adopted this amendment. It did not have an impact on the financial position or performance of the Group.
In addition the IASB issued an amendment to IFRS 2 that clarified the scope and the accounting for group cash-settled share-based
payment transactions. The adoption of this amendment did not have an impact on the financial position or performance of the Group.
IFRS 3 (revised) “Business Combinations” and IAS 27 (amended) “Consolidated and Separate Financial Statements”
IFRS 3 (revised) introduces significant changes in the accounting for business combinations occurring after 1 January 2009. Changes
affect the valuation of non-controlling interest, the accounting for transaction costs, the initial recognition and subsequent measurement
of a contingent consideration and business combinations achieved in stages. These changes will impact the amount of goodwill
recognized, the reported results in the period that an acquisition occurs and future reported results.
IAS 27 (amended) requires that a change in the ownership interest of a subsidiary (without loss of control) is accounted for as a transaction
with owners in their capacity as owners. Therefore, such transactions will no longer give rise to goodwill, nor will it give rise
to a gain or loss. Furthermore, the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss
of control of a subsidiary. The changes by IFRS 3 and IAS 27 will affect future acquisitions or loss of control of subsidiaries and
transactions with non-controlling interest.
The change in accounting policy has been early adopted and had no material impact on earnings per shares.
IFRS 7 (amendment) “Financial Instruments: Disclosures”
The amended standard requires additional disclosures about fair value measurement and liquidity risk. Fair value measurements related
to items recorded at fair value are to be disclosed by source of inputs using a three-level fair value hierarchy, by class, for all financial
instruments recognized at fair value. In addition, reconciliation between the beginning and ending balance for level 3 fair value measurements
is now required, as well as significant transfer between levels in the fair value hierarchy. The amendments also clarify the requirements
for liquidity risk disclosures with respect to derivative transactions and assets used for liquidity management. The fair value
measurement disclosures are presented in note 18. The liquidity risk disclosures are not significantly impacted by the amendments and
are also presented in note 18.
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IFRS 8 “Operating Segments”
The new standard replaces IAS 14 “Segment reporting” upon its effective date. The Group concluded that the operating segments
determined in accordance with IFRS 8 are the same segments previously identified under IAS 14.
The internal reporting provided to the Executive Board and the Board of Directors is generated according to the existing four geograph
ical operating segments and based on the same recognition and measurement principles as the consolidated financial statements.
There have been no changes in the composition of operating segments due to the adoption of IFRS 8 but additional disclosures.
An operating segment is a component of the Group that engages in business activities from which it may earn external and internal
revenues and incur expenses. Segment results that are reported to the Executive Board and the Board of Directors include directly
attributable items to a segment. Unallocated items comprise mainly corporate assets, head office expenses and income tax assets and
liabilities. Formerly, corporate activities were included in Europe / Africa / Middle East / CIS. Comparative segment information has been
represented.
IAS 1 (revised) “Presentation of Financial Statements”
The revised standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details of
transactions with owners with non-owner changes in equity presented in a reconciliation of each component of equity. In addition,
the standard introduces the statement of comprehensive income. It presents all items of recognized income and expenses, either in
one single statement or in two linked statements. The Group has elected to present two statements.
IAS 23 (amendment) “Borrowing Costs”
The amended standard requires capitalization of borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset. The Group’s previous policy was to expense borrowing costs as they were incurred. In accordance
with the transitional provision of the amended IAS 23, the Group has adopted the standard on a prospective basis. The change in account
ing policy did not have any impact on earnings per share as the Group does not have any qualifying assets.
IAS 32 (amendment) “Financial Instruments: Presentation” and IAS 1 (amendment)
“Puttable Financial Instruments and Obligations Arising on Liquidation”
The standards have been amended to allow a limited scope exception for puttable financial instruments to be classified as equity
if they fulfil a number of specified criteria. The adoption of these amendments did not have any impact on the financial position or the
performance of the Group.
IAS 39 (amendment) “Financial Instruments: Recognition and Measurement – Eligible Hedged Items”
The amendment clarifies that an entity is permitted to designate a portion of the fair value changes or cash flow variability of a particular
situation. The Group has concluded that the amendment will have no impact on the financial position or performance of the Group, as
the Group has not entered into any such hedges.
IFRIC 9 (amendment) “Reassessment of Embedded Derivatives” and IAS 39 (amendment)
“Financial Instruments: Recognition and Measurement”
This amendment to IFRIC 9 requires an entity to assess whether an embedded derivative must be separated from a host contract when
the entity reclassifies a hybrid financial asset out of the fair value through profit or loss category. This assessment is to be based on
circumstances that existed on the later of the date the entity first became a party to the contract and the date of any contract amendments
that significantly change the cash flow of the contract. IAS 39 now states that if an embedded derivative cannot be reliably
measured, the entire hybrid instrument must remain classified as at fair value through profit or loss.
IFRIC 13 “Customer Loyalty Programs”
IFRIC 13 requires customer loyalty credits to be accounted for as separate component of the sales transaction in which they are granted.
A portion of the fair value of the consideration received is allocated to the award credits and deferred. This is then recognized as
revenue over the period that the award credits are redeemed. As the Group does not maintain a loyalty program, the interpretation is
not relevant to the Group’s operations.
IFRIC 15 “Agreements for Construction of Real Estates”
The interpretation clarifies whether IAS 18 “Revenue” or IAS 11 “Construction Contracts” should be applied to particular transactions.
It is likely to result in IAS 18 being applied to a wider range of transactions. IFRIC 15 is not relevant to the Group’s operations as all revenue
transactions are accounted for under IAS 18 and not IAS 11.
IFRIC 16 “Hedges of a Net Investment in a Foreign Operation”
The interpretation is not to be applied prospectively. IFRIC 16 provides guidance on the accounting for a hedge of a net investment.
As such it provides guidance on identifying the foreign currency risks that qualify for hedge accounting in the hedge of a net investment,
where within the Group the hedging instruments can be held in the hedge of a net investment and how an entity should determine
the amount of foreign currency gain or loss, relating to both the net investment and the hedging instrument, to be recycled on disposal
on the net investment.
IFRIC 18 “Transfer of Assets from Customers”
This interpretation clarifies how to account for transfer of items of property, plant and equipment by entities that receive such transfers
from their customers. The interpretation also applies to agreements in which an entity receives cash from a customer when that amount
Panalpina Annual Report 2009

Consolidated and Annual Financial Statements 2009
of cash must be used only to construct or acquire an item or property, plant or equipment and the entity must then use that item to
provide the customer with ongoing access to supply goods or services. Panalpina is not impacted by applying IFRIC 18.
Improvements to IFRSs
In May 2008 and April 2009, the IASB issued amendments to its standards, primarily with a view to removing inconsistencies and
clarifying wording. There are separate transitional provisions for each standard. The adoption of the following amendments resulted in
changes to accounting policies but did not have any impact on the financial position or performance of the Group.
IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations” clarifies that the disclosures required in respect of noncurrent
assets and disposal groups classified as held for sale or discontinued operations are only those set out in IFRS 5. The disclosure
requirements of other IFRSs only apply if specifically required for such non-current assets or discontinued operations. This amendment
does not affect the Group’s disclosure as the Group did not have non-current assets and disposal groups classified as held for
sale or discontinued operations.
IFRS 8 “Operating Segment Information” clarifies that segment assets and liabilities need only be reported when those assets
and liabilities are included in measures that are used by the chief operating decision maker.
As the Group’s chief operating decision maker does review segment assets and liabilities, the Group has continued to disclose this
information in note 5.
IAS 1 “Presentation of Financial Statements”: Assets and liabilities classified as held for trading in accordance with IAS 39
“Financial Instruments: Recognition and Measurement” are not automatically classified as current in the statement of financial position.
The Group analyzed whether the expected period of realization of financial assets and liabilities differed from the classification of
the instrument. This did not result in any reclassification of financial instruments between current and non-current in the statement
of financial position.
IAS 7 “Statement of Cash Flows” explicitly states that only expenditure that results in recognizing an asset can be classified as
cash flow from investing activities. This amendment will impact the presentation in the statement of cash flows of the contingent
consideration on the business combination. As in the period under review there were no business combinations, the amendment did
not affect the presentation of the statement of cash flows.
IAS 16 “Property, Plant and Equipment” with “fair value less costs to sell.” The Group amended its accounting policy accordingly,
which did not result in any change in the Group’s financial position.
IAS 18 “Revenue”: The Board has added guidance, which accompanies the standard, to determine whether an entity is acting as
a principal or as an agent. The features to consider are whether the entity:
has primary responsibility for providing the goods or service
has inventory risk
has discretion in establishing prices
bears the credit risk
The Group has assessed its revenue arrangements against these criteria and concluded that it is acting as principal in all arrangements.
The revenue recognition accounting policy has not been updated as the new guidance does not effect the Group’s policy.
IAS 20 “Accounting for Government Grants and Disclosures of Government Assistance”: Loans granted with no or low interest
will not be exempted from the requirement to impute interest. Interest is to be imputed on loans granted with below-market interest
rates. This amendment did not impact the Group as the government assistance received is not loans but direct grants.
IAS 23 “Borrowing Costs”: The definition of borrowing costs is revised to consolidate two types of items that are considered
com ponents of “borrowing costs” into one – the interest expense calculated using the effective interest rate method in accordance
with IAS 39. The Group has amended its accounting policy accordingly which did not result in any change in its financial position.
IAS 36 “Impairment of Assets”: When discounted cash flows are used to estimate “fair value less cost to sell”, additional disclosure
is required for the discount rate, consistent with disclosures required when the discounted cash flows are used to estimate “value
in use.” This amendment had no immediate impact on the consolidated financial statements of the Group because the recoverable
amount of its cash generating units is currently estimated using “value in use.”
The amendment clarified that the largest unit permitted for allocating goodwill acquired in a business combination is the operating
segment as defined in IFRS 8 before aggregation for reporting purposes. The amendment has no impact on the Group as the annual
impairment test is performed before aggregation.
IAS 38 “Intangible Assets”: Expenditure on advertising and promotional activities is recognized as an expense when the Group
either has the right to access the goods or has received the service. This amendment has no impact on the Group because it does
not enter into such promotional activities.
The reference to there being rarely, if ever, persuasive evidence to support an amortization method of intangible assets other than
a straight-line method has been removed.
Other amendments resulting from improvements to IFRSs did not have any impact on the accounting policy, financial position or
performance of the Group. Panalpina generally early adopted improvements to IFRSs (April 2009) except the amendments relating
to IFRS 5 / IAS 1.
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Consolidated and Annual Financial Statements 2009
The following new standards, amendments to standards and interpretations that have been published are mandatory for the Group’s
accounting periods beginning on or after 1 January 2010 or later periods, but the Group has not early adopted them:
IFRS 1 (revised) “First-Time Adoption of IFRSs”
This revised version restructures the format of IFRS 1 without changing the standard’s technical content. The revised standard has no
impact on the financial statements as Panalpina is not applying International Financial Reporting Standards for the first time.
IFRS 1 (amended) “First-Time Adoption of IFRSs – Additional Exemptions”
This amendment includes, for companies adopting IFRS for the first time, further exemptions from the generally mandatory retrospective
application of all standards and interpretations in force as of the balance sheet date as of which the initial IFRS financial statements
are drawn up. The amendment has no impact on the financial statements as Panalpina is not applying International Financial Reporting
Standards for the first time.
IFRS 2 (amendment) “Group’s Cash-settled and Share-based Payment Transactions”
In addition to incorporating IFRIC 8 “Scope of IFRS 2” and IFRIC 11 “IFRS 2: Group and treasury share transactions,” the amendments
expand on the guidance in IFRIC 11 to address the classification of Group arrangements that were not covered by that interpretation.
The new guidance is not expected to have a material impact on the Group’s financial statements.
IFRS 5 (amendment) “Measurement of Non-current Assets (or Disposal Groups) classified as Held-for-Sale”
The amendment is part of the IASB’s annual improvements project published in April 2009. The amendment provides clarification that
IFRS 5 specifies the disclosures required in respect of non-current assets (or disposal groups) classified as held for sale or discontinued
operations. It also clarifies that the general requirements of IAS 1 still apply, particularly paragraph 15 (to achieve a fair presentation)
and paragraph 125 (sources of estimation uncertainty) of IAS 1. The Group will apply IFRS 5 (amendment) from 1 January 2010. It is not
expected to have a material impact on the Group’s financial statements.
IFRS 9 “Financial Instruments: Measurement and Classification”
IFRS 9 was issued in November 2009 and is intended to replace IAS 39 “Financial Instruments: Recognition and Measurement”. This
will take place in three main phases. IFRS 9 as published deals with classification and measurements of financial assets only. IFRS 9
reduces the existing measurement categories of financial instruments to two primary categories of financial assets: amortized cost and
fair value. The categorization of financial assets is based on the newly introduced business model approach, i.e. it aligns the accounting
with the way that the management deploys assets in its business while also considering the characteristics of the assets. IFRS 9
is applicable for periods beginning on or after 1 January 2013. The impact on the consolidated financial statements can not yet be
determined with sufficient reliability.
IAS 1 (amendment) “Presentation of Financial Statements”
The amendment is part of the IASB’s annual improvements project published in April 2009. The amendment provides clarification that
the potential settlement of a liability by the issue of equity is not relevant to its classification as current or non-current. By amending
the definition of current liability, the amendment permits a liability to be classified as non-current (provided that the entity has an unconditional
right to defer settlement by transfer of cash or other assets for at least 12 months after the accounting period) notwithstanding
the fact that the entity could be required by the counter party to settle in shares at any time. The Group will apply IAS 1 (amendment)
from 1 January 2010. It is not expected to have a material impact on the Group’s financial statements.
IAS 24 (revised) “Related Party Disclosures”
The revised standard provides a simplified definition of related parties by clarifying its intended meaning and eliminating inconsistencies
from the definition. Panalpina is in process to analyze whether IAS 24 (revised) will impact the composition of related parties. The
Company will apply IAS 24 (revised) for the financial year 2011.
IAS 32 (amended) “Financial Instruments: Presentation – Classification of Rights Issues”
The amendment to IAS 32 addresses the accounting for rights issues such as rights, options or warrants that are denominated in a
currency other than the functional currency of the issuer. In particular, when the amendment is applied, rights (and similar derivatives)
to acquire a fixed number of an entity’s own equity instruments for a fixed price stated in a currency other than the entity’s functional
currency, would be equity instruments, provided the entity offers the rights pro rata to all of its existing owners of the same class of its
own non-derivative equity instruments. Panalpina will apply IAS 32 (amended) for periods beginning on 1 January 2011. As Panalpina
has no rights issues, no impact is expected on the consolidated financial statements.
IFRIC 14 (amended) “The Limit on a Defined Benefit Asset, Minimum Funding Requirement and their Interaction –
Prepayment of a Minimum Funding Requirement”
The amendment concerns those cases where a company is subject to minimum funding requirements and makes advance contribution
payments in order to settle these minimum funding commitments. The amendment permits the recording of the benefit from such
advance payments as an asset. Panalpina is in the process of analyzing the impact of each of this amendment.
Panalpina Annual Report 2009

Consolidated and Annual Financial Statements 2009
IFRIC 17 “Distribution of Non-cash Assets to Owners”
The interpretation is part of the IASB’s annual improvements project published in April 2009. The interpretation provides guidance on
accounting for arrangements whereby an entity distributes non-cash assets to shareholders either as a distribution of reserves or
as dividends. The Group will apply IFRIC 17 from 1 January 2010. It is not expected to have a material impact on the Group’s financial
statements.
IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments”
The interpretation clarifies that the issue of an entity’s equity instruments to a creditor to extinguish all or part of a financial liability qualifies
as consideration paid and therefore as extinguishment of the liability. The entity shall measure the equity instruments issued at the
fair value of the equity instruments issued or the fair value of the liability extinguished, whichever is more reliably determinable. Possible
gains or losses are to be disclosed separately. Panalpina will apply the new interpretation for annual periods beginning on 1 January 2011,
but anticipates no impact on its financial statements from the implementation of this interpretation.
Basis of consolidation
Business combination
The Group has adopted early IFRS 3 “Business Combinations” (2008) and IAS 27 “Consolidated and Separate Financial Statements” (2008)
for all business combinations in the financial year starting 1 January 2009. All business combinations occurring on or after 1 January 2009
are accounted for by applying the acquisition method. The change in accounting policy is applied prospectively.
Subsidiaries
Subsidiaries are entities over which the Group has the power to govern the financial and operating policies generally accompanied by
a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated as of the date
on which control is transferred to the Group and are deconsolidated as of the date control ceases.
Acquisitions of entities
The acquisition method of accounting is used for the acquisition of subsidiaries by the Group. The consideration transferred for the acquisition
of a subsidiary is determined by the fair values of the assets transferred, the liabilities incurred to previous owners and the equity
interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration
arrangement. Acquisition-related costs are expense as incurred. Identifiable assets acquired and liabilities assumed in a business
combination are measured initially at their fair value at acquisition date.
The Group measures goodwill as the fair value of the consideration transferred including the recognized amount of any non-controlling
interest in the acquiree, less the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all
measured as at the acquisition date.
The Group measures any non-controlling interest at its proportionate interest in the fair value of identifiable net assets of the acquiree.
Transactions with non-controlling interests
Under the new accounting policy, transactions with non-controlling interests while retaining control are accounted for as transactions with
equity holders in their capacity as equity holders. As long as there is no change in control, all transactions with non-controlling interests
are recorded in equity and are no longer resulting in goodwill or gains and losses. For purchases of non-controlling interests, the difference
between any consideration transferred and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in
equity. Gains and losses on disposal of non-controlling interests are also recorded in equity.
If a transaction with non-controlling interests results in a change of control, any previously held or retained interest in the entity is remeasured
to fair value, and a gain or loss is recognized in profit or loss, together with the realized gain or loss on the portion of interest
sold.
Transactions eliminated on consolidation
Intragroup transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are
also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
Associates
Associates are all entities in which the Group has significant influence, but where it does not have control, generally accompanying a shareholding
of between 20 % and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting
and are initially recognized at cost. The Group’s investment in associates includes goodwill identified on acquisition, net of any accumulated
impairment loss.
The Group’s share of its associates’ post-acquisition profits or losses is recognized in the income statement, and its share of post-acquisition
movements in reserves is recognized in reserves. The cumulative post-acquisition movements are adjusted against the carrying
amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any
other unsecured receivables, the Group does not recognize further losses, unless it has incurred obligations or made payments on
behalf of the associate.
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Consolidated and Annual Financial Statements 2009
Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates.
Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting
policies of associates have been aligned where necessary to ensure consistency with the policies adopted by the Group. Dilution gains
and losses arising in investments in associates are recognized in the income statement.
Foreign currency
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Swiss francs,
which is the Group’s presentation currency.
Transactions and balances
Foreign currency transactions and balances are translated into the functional currency using the exchange rates prevailing at the transaction
or reporting dates. Foreign exchange gains and losses resulting from the settlement of such balances and from the remeasurement
at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.
Changes in the fair value of securities denominated in foreign currency classified as available-for-sale are split into components resulting
from changes in the amortized cost of the security and other changes in the carrying amount of the security. Foreign exchange remeas urement
differences related to changes in amortized cost are recognized in profit or loss, and other changes in the carrying amount are
recog nized in equity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as of the
dates of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates on
the date on which the fair value is determined.
On consolidation, exchange differences arising from the translation of net investments in foreign operations are taken to other comprehensive
income. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in other comprehensive
income are recognized in the income statement as part of the gain or loss on sale.
Group Companies
The results and financial positions of Group entities that have a functional currency different from the presentation currency are translated
into the presentation currency as follows:
assets and liabilities for each statement of financial position presented are translated at the closing rate at the reporting date;
income and expenses for each income statement are translated at average exchange rates; and
all resulting exchange differences are recognized as a separate component of other comprehensive income.
The income and expenses of foreign operations in hyperinflationary economies are translated to Swiss francs at the exchange rate on
the reporting date. Prior to translating the financial statement of foreign operations in hyperinflationary economies, their financial statements
are restated to account for changes in the general purchasing power of the local currency. The restatement is based on relevant
price indices on the reporting date. Foreign currency differences are recognized directly in comprehensive income in the foreign currency
translation reserve. When a foreign operation is disposed of, in part or in full, the relevant amount in the foreign currency translation reserve
is transferred to profit or loss.
Any goodwill arising on the acquisition is treated as assets and liabilities of the foreign operation and translated at the closing rate.
The most important exchange rates used in the reported financial statements are:
Panalpina Annual Report 2009
Balance
Sheet
2009 2008
Income
Statement
Balance
Sheet
Income
Statement
EUR 1.48429 1.51006 EUR 1.48959 1.58707
USD 1.02940 1.08465 USD 1.05690 1.08339
HKD 0.13274 0.13992 HKD 0.13637 0.13915
CNY 0.15078 0.15877 CNY 0.15483 0.15602
CAD 0.97917 0.95269 CAD 0.86888 1.01891
GBP 1.66053 1.69541 GBP 1.52785 1.99850

Consolidated and Annual Financial Statements 2009
Hedge of a net investment in a foreign operation
The Group applies hedge accounting to foreign currency differences arising between the functional currency of the foreign operation and
the parent entity’s functional currency, regardless of whether the net investment is held directly or through an intermediate parent.
Foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net investment in a foreign
operation are recognized in other comprehensive income to the extent that the hedge is effective, and are presented within equity in the
foreign currency translation reserve (FCTR). To the extent that the hedge is ineffective, such differences are recognized in the income
statement. When the hedged part of a net investment is disposed of, the relevant amount in the FCTR is transferred to profit or loss as
part of the profit or loss on disposal.
Operating segment information
The Group’s operations are predominantly determined by the geographical location of the Group’s operation. The determination of the
Group’s operating segments is based on the organization units for which information is reported to the Group’s management. The Group
is primarily organized by regions and has four reportable segments, “Europe / Africa / Middle East / CIS,” “North America,” “Central and
South America” and “Asia / Pacific.” Each reportable segment offers the same product and services. As chief operating decision maker the
Executive Board has been identified. The Executive Board monthly reviews the Group’s internal reporting in order to assess performance
and allocate resources. Management has determined the operating segments based on these reports.
Performance is measured based on gross profit and operating result (EBIT). Income tax expenses as well as finance income and costs
are not assessed by segment.
Certain headquarter activities are reported as “Corporate.” These consist of corporate headquarters, including the Corporate Executive
Committee, corporate communications, corporate operations, corporate human resources, corporate finance, including treasury, taxes
and pension fund management, corporate legal and corporate safety and environmental services. Previously the corporate functions have
been reported within “Europe / Africa / Middle East / CIS.”
Transfer prices between operating segments are set out at arm’s-length basis. Operating assets and liabilities consist of property, plant
and equipment, goodwill and intangible assets, trade receivables / payables, other assets and liabilities such as provisions and current
income taxes, which can be reasonably attributed to the reported operating segments. Non-operating assets and liabilities mainly include
deferred income tax balances, post-employment benefit assets / liabilities and financial assets / liabilities such as marketable securities
and investments.
Revenue recognition
Net forwarding revenue includes services for forwarding performed for third parties after deducting trade discounts and volume rebates
and excluding sales taxes and value-added taxes less charges for customs and duty.
Trade discounts and volume rebates are recorded on an accrual basis consistent with recognition of the related revenue recorded as
a deduction for accounts receivables or as accrued liabilities. Such estimates are based on analyses of existing contractual or legislatively
mandated obligations, historical trends and the Group’s experience.
Net forwarding revenue is recognized at the time the services are performed. Logistics projects with a longer period of delivery are
recognized to the stage of completion of the services on the reporting date. The stage of completion is assessed in reference to completion
of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.
Gross profit includes net forwarding revenue from services rendered less related expenses for services provided by third parties net of
customs, duty and taxes.
Interest income
Revenue is recognized as interest accrued using the effective interest method. Interest income is included in finance income in the income
statement.
Dividends
Revenue is recognized when the Group’s right to receive the payment is established.
Forwarding services from third parties
Forwarding services from third parties include the corresponding direct services costs and related services costs rendered by a third
party. Trade discounts, cash discounts and volume rebates are recorded on an accrual basis consistent with the recognition of the related
services.
Employee benefits
Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.
When an obligation can be estimated reliably, a liability is recognized for the amount expected to be paid under short-term cash bonus or
profit-sharing plans if the Group has present legal or constructive obligation to pay this amount as a result of past service provided by
the employee.
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Consolidated and Annual Financial Statements 2009
Termination benefits
Termination benefits are recognized as an expense when the Group is demonstrably committed, without realistic possibility of withdrawal,
to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result
of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense if the
Group has made an offer of voluntary redundancy and it is probable that the offer will be accepted.
Pension obligation
Group companies operate various pension schemes. The schemes are generally funded through payments to insurance companies or
trustee-administrated funds. The Group has both defined benefit and defined contribution plans.
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no
legal or constructive obligations to pay further contributions. Contributions to defined contribution plans are recognized in the income
statement when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future
payments is available.
The asset and liability recognized in the balance sheet in regard to defined benefit pension plans is the present value of the defined
benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognized past-service
costs. The defined benefit obligation is calculated annually by qualified actuaries using the projected unit credit method. The present value
of the defined benefit obligation is determined by discounting the estimated future cash outflows using the interest rates of high-quality
corporate bonds that are denominated in the currency in which the benefits will be paid and which have maturity dates approximating the
terms of the related pension liability.
When the calculation results in a benefit to the Group, the recognized asset is limited to the total of any unrecognized past-service costs
and the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions
to the plan. An economic benefit is available to the Group if it is realizable during the life of the plan, or on settlement of the plan liabilities.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity
in the other comprehensive income in the period in which they arise.
Past-service costs are recognized immediately in income, unless the changes to the pension plan are conditional on the employees remaining
in service for a specified period of time. In this case, past-service costs are amortized on a straight-line basis over the vesting period.
Other long-term employee benefits
Net obligation in regard to long-term employee benefits other than pension plans is the amount of future benefits that employees have
earned in return for their service in the current and / or prior periods. Benefits are discounted to determine its present value and the fair
value of any related asset is deducted. The expected costs of these benefits are accrued over the period of employment using the same
method of valuation that is used for defined benefit pension plans. Any actuarial gains or losses are recognized in the income statement
in the period in which they arise.
Share-based compensation
The Group operates equity-settled, share-based compensation plans. The fair value of the employee services received in exchange for the
granting of the options and the discount on the shares granted are recognized as an expense, together with a corresponding increase
in equity, over the period in which the performance and / or service conditions are fulfilled, ending on the date on which the relevant employees
become fully entitled to the award (the vesting date). Non-market vesting conditions are included in assumptions about the number of
options that are expected to become exercisable. On each balance sheet date, the Company revises its estimates of the number of options
that are expected to become exercisable. The impact of the revision of original estimates, if any, is recognized immediately in the income
statement, with a corresponding adjustment to equity.
Other operating expenses
Other operating expenses primarily include administrative expenses, communication expenses, rent and utilities expenses, travel and promotion
expenses, insurance expenses and claims, changes in provisions from impairments of trade receivables and collection expenses
and other operating expenses necessary to render forwarding revenue to third parties. The expenses are recognized when the expenses
recorded on an accrual basis have been occurred.
Finance income and costs
Finance income comprises interest income on funds invested, dividend income, gains on disposals of available-for-sale financial assets,
changes in the fair value of financial assets at fair value through profit or loss, and gains on derivatives that are recognized in profit or loss.
Interest income is recognized as it accrues in profit or loss, using the effective interest method.
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, changes in the fair value of financial
assets at fair value through profit or loss, impairment losses recognized on financial assets, losses on hedging instruments that are
recog nized in profit or loss, bank charges and bank guarantee fees. All borrowing costs are recognized in profit or loss using the effective
interest method.
Panalpina Annual Report 2009

Income tax expenses
Consolidated and Annual Financial Statements 2009
Income tax expenses comprise current and deferred tax. Income taxes include all taxes based upon the taxable profits of the Group,
including withholding taxes payable on the distribution of retained earnings within the Group. Other taxes not based on income, such as
capital taxes, are included within general expenses. Current tax and deferred tax are recognized in profit or loss except to the extent
that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the initial recognition of assets and liabilities
in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating
to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable
future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred
tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have
been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable
right to offset current tax liabilities and assets and if it is intended either to settle on a net basis or to realize the asset and settle the liability
simultaneously.
A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable
that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Cash and cash equivalents and other current financial assets
Cash and cash equivalents included in the statement of financial position and statement of cash flows represent cash on hand, bank
and postal checks, bills of exchange net, bank current account balances and time deposits and highly liquid money market papers with
a maturity period of less than 3 months from the date of acquisition.
Other current financial assets include time deposits with a maturity period between 3 months and 1 year.
Trade receivables
Accounts receivable are recognized initially at fair value and are subsequently measured at amortized cost using the effective interest
method, less valuation adjustments for impairments. A provision for impairment of trade receivables is established when there is objective
evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. Significant financial
difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments
(more than 30 days overdue) are considered indicators that the trade receivable is impaired. The amount of the provision is the difference
between the asset’s carrying amount and the present value of estimated future cash flows. The carrying amount of the asset is reduced
through the use of an allowance account, and the amount of the loss is recognized in the income statement within other operating expenses.
When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries
of amounts previously written off or one hundred percent impaired are credited against operating expenses in the income statement.
Unbilled forwarding services
Unbilled forwarding services represents the gross unbilled amount expected to be collected from customers for forwarding services in
progress for which costs are incurred but not yet invoiced. For logistics projects and other services with a longer period of delivery, recognized
profits are included.
Non-current assets held for sale
Non-current assets or disposal groups are classified as assets held for sale when their carrying amount is to be recovered principally through
a sales transaction and a sale is considered highly probable. Before classification as held for sale, the assets or components of a disposal
group are remeasured in accordance with the Group’s accounting policies. Thereafter, generally the assets or disposal groups are measured
at the lower of their carrying amount and fair value less costs. Any impairment loss on a disposal group is allocated first to goodwill, and
then to remaining assets and liabilities on a pro rata basis, except that no loss is allocated to financial assets, deferred tax assets and employee
benefit assets, which continue to be measured. Impairment losses on initial classification as held for sale and subsequent gains or
losses on remeasurement are recognized in the income statement. Gains are not recognized in excess of any cumulative impairment loss.
Property, plant and equipment
Property, plant and equipment are measured at cost, net of accumulated depreciation and / or accumulated impairment losses, if any. Cost
includes expenditure that is directly attributable to the acquisition of the asset and the cost of replacing part of the property, plant and
equipment as well as borrowing costs for long-term construction projects if the recognition criteria are met. All other repair and maintenance
costs of the day-to-day servicing are recognized in the income statement as incurred. The present value of the expected cost for the
decommissioning of the asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.
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Refer to provisions for further information about the measurement of the decommissioning provision.
When components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of
property, plant and equipment.
Gains and losses on a disposal of an item of property, plant and equipment are determined by comparing the process from disposal with
the carrying amount of property, plant and equipment, and are recognized net within gains or losses on sales of non-current assets in
the income statement.
Land and buildings are carried at cost less depreciation and / or accumulated impairment losses.
Depreciation is recognized in the income statement on a straight-line basis over the estimated useful lives of each part of an item of property,
plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably
certain that the Group will obtain ownership by the end of the lease term. Land and construction in progress are not depreciated. The estimated
useful lives for the current and comparative periods are as follows:
Warehouse and office buildings
Years
25 – 40
Warehouse and transportation equipment 3 – 10
Office furnishings and equipment 5 – 10
EDP hardware 3
Trucks, trailers and special vehicles 3 – 10
Automobiles 3 – 5
The assets’ residual value and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.
Payments made under operating leases are recognized in the income statement on a straight-line basis over the shorter of the estimated
useful life of the asset and the lease term.
The Group leases certain property, plants and equipment. Leases of property, plant and equipment in which the Group substantially bears
all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease’s commencement at
the lower of the fair value of the leased property and the present value of the minimum lease payments. Subsequent to initial recognition,
the asset is accounted for in accordance with the accounting policy applicable for that asset.
Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding.
The corresponding leasing obligations, net of finance charges, are included in borrowings. The interest element of the finance cost
is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of
the liability for each period.
Intangible assets
Business combinations and goodwill
Business combinations are accounted for using the purchase method. The cost of an acquisition is measured as the fair value of the assets
given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities
and contingent liabilities assumed in a business combination are measured initially at fair values at the date of acquisition, irrespective of
the extent of any non-controlling interest.
Goodwill is initially measured at cost, being the excess of the cost of the business combination over the Group’s share in the net fair value
of the acquiree’s identifiable assets, liabilities and contingent liabilities. If the cost of acquisition is less than the fair value of the net assets
of the affiliate acquired, the difference is recognized in the income statement.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing,
goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are
expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquiree are assigned
to those units.
Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with
the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation.
Goodwill disposed of under this circumstance is measured based on the relative values of the operation disposed of and the portion
of the cash-generating unit retained.
Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is tested annually for impairment and carried at cost less
accumulated impairment losses. Impairment losses on goodwill are not reversed.
When subsidiaries are sold, the difference between the selling price and the net assets plus cumulative translation differences and unamortized
goodwill is recognized in the income statement.
Panalpina Annual Report 2009

Consolidated and Annual Financial Statements 2009
Trademarks and licenses
Separately acquired trademarks and licenses are shown at historical cost. Trademarks and licenses acquired in a business combination
are recognized at fair value at the acquisition date. Trademarks and licenses have a finite useful life and are carried at cost less accumulated
amortization and / or accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of
trademarks and licenses over their estimated useful lives of 5 to 10 years.
Customer relationships
Customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Customer relations have
a finite useful life and are carried at cost less accumulated amortization and / or accumulated impairment losses. Amortization is calculated
using the straight-line method over the expected life of the customer relationship of 3 to 5 years.
Computer software
Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the
Group are recognized as intangible assets when the following criteria are met:
it is technically feasible to complete the software product so that it will be available for use;
management intends to complete the software product and use or sell it;
there is an ability to use or sell the software product;
it can be demonstrated how the software product will generate probable future economic benefits;
adequate technical, financial and other resources to complete the development and to use or sell the software product are available;
and
the expenditure attributable to the software product during its development can be reliably measured.
Directly attributable costs that are capitalized as part of the software product include software development costs, employee costs and
an appropriate portion of relevant overhead costs. Other development expenditures that do not meet these criteria are recognized as an
expense as incurred. Development costs previously recognized as expenses are not recognized as an asset in a subsequent period.
Costs associated with maintaining computer software programs are recognized as an expense as incurred.
Computer software development costs recognized as assets are amortized over their estimated useful life, which does not exceed 3 years.
Other intangible assets
Other intangible assets that are acquired by the Group that have finite useful lives are measured at cost less accumulated amortization and
accumulated impairment losses.
Impairment of non-financial assets
The Group assesses on each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or
when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined
for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or asset
groups. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down
to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An appropriate
valuation model is used to determine fair value less costs to sell. These calculations are corroborated by valuation multiples, quoted share
prices for publicly traded subsidiaries or other available fair value indicators. Impairment losses are recognized in the income statement.
For assets excluding goodwill, an assessment is made on each reporting date as to whether there is any indication that previously recognized
impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset’s or cashgenerating
unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions
used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the
carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined,
net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the income statement.
The following criteria are also applied in assessing impairment of specific assets:
Goodwill
Goodwill is reviewed for impairment annually, or more frequently if events or changes in circumstances indicate that the carrying value may
be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of the cash-generating unit to which the goodwill relates.
Where the recoverable amount of the cash-generating unit is less than the carrying amount of the cash-generating unit to which the goodwill
has been allocated, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.
The Group performs its annual impairment test of goodwill as of 31 December.
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Intangible assets
Intangible assets with indefinite useful lives are tested for impairment annually as of 31 December either individually or at the cash-generating
unit level, as appropriate and when circumstances indicate that the carrying value may be impaired.
Financial assets
The Group classifies its financial assets into the following categories: at fair value through profit or loss, loans and receivables, availablefor-sale
and in exceptional cases as held-to-maturity. The classification depends on the purpose for which the financial assets were
acquired. Management determines the classification of its financial assets at initial recognition.
Financial assets are recognized initially at fair value plus, in the case of investments not at fair value through profit or loss, directly attributable
transaction costs.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or conversion in the
market place are recognized on the trade date, i.e. the date the Group commits to purchase or sell the asset.
The Group’s financial assets include cash and marketable securities, short-term deposits, trade and other receivables, loans and other
receivables, quoted and unquoted financial instruments and derivative financial instruments.
Subsequent measurement
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition
at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling
in the near term. This category includes derivative financial instruments entered into by the Group that do not meet the hedge accounting
criteria. Derivatives, including separately embedded derivatives, are also classified as held for trading unless they are designated as effective
hedging instruments. Financial assets at fair value through profit or loss are carried on the balance sheet at fair value with gains or
losses recognized in the income statement.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
Such financial assets are carried at amortized cost using the effective interest rate method. Gains and losses are recognized in the income
statement when the loans and receivables are derecognized or impaired, as well as through the amortization process.
Trade receivables originated by the Group are financial assets that are created by providing money or services directly to the debtor. Such
receivables are not quoted and not originated with the intention to be sold immediately or in the near term. Receivables are presented in
current assets for maturities up to twelve months (accounting treatment of trade receivables is outlined in more detail in the section: Trade
receivables).
Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-to-maturity when the Group
has the positive intention and ability to hold them until maturity. After initial measurement, held-to-maturity investments are measured at
amortized cost using the effective interest method. This method uses an effective interest rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to the net carrying amount of the financial asset. Gains and losses are recognized
in the income statement when the investments are derecognized or impaired, as well as through the amortization process. The Group did
not have any held-to-maturity investments during the periods under review.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are not classified in any of
the three preceding categories. After initial measurement, available-for-sale financial assets are measured at fair value with unrealized gains
or losses recognized in comprehensive income until the investment is derecognized, at which time the cumulative gain or loss recorded in
comprehensive income is recognized in the income statement, or determined to be impaired, at which time the cumulative loss recorded
in comprehensive income is recognized in the income statement.
Financial liabilities
Financial liabilities are classified as financial liabilities at fair value through profit or loss, financial liabilities at amortized cost or as derivatives
designated as hedging instruments in an effective hedge as appropriate. The Group determines the classification of its financial liabilities at
initial recognition.
Financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, directly attributable transaction costs.
The Group’s financial liabilities include trade and other payables, bank overdrafts, loans and borrowings, financial guarantee contracts and
derivative financial instruments.
Subsequent measurement
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial
recognition as at fair value through profit or loss. This category includes derivative financial instruments entered into by the Group that do not
meet the hedge accounting criteria. Gains or losses on liabilities at fair value through profit or loss are recognized in the income statement.
Panalpina Annual Report 2009

Loans and borrowings
Consolidated and Annual Financial Statements 2009
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective rate method.
Gains and losses are recognized in the income statement when the liabilities are derecognized as well as through the amortization process.
Financial guarantee contracts
Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder for a
loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial
guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the
issuance of the guarantee. Subsequently, the liability is measured at the higher of the best estimate of the expenditure required to settle
the present obligation on the balance sheet date and the amount recognized less cumulative amortization.
Fair values of financial instruments
The fair value of financial instruments traded in active markets is determined by reference to quoted market bid prices at the close of business
on the balance sheet date. For unlisted financial instruments where there is no active market, fair value is determined using valuation
techniques. Such techniques may include using recent arm’s-length market transactions, reference to the current fair value of another instrument
that is substantially the same, discounted cash flows analysis or other valuation models. The fair value of forward foreign exchange
contracts is determined using quoted forward exchange rates on the balance sheet date.
Due to the short-term character of trade receivables, the fair value of the trade receivables approximates their carrying amount.
Amortized cost of financial instruments
Amortized cost is computed using the effective interest method less any allowance for impairment and principal repayment or reduction.
The calculation takes into account any premium or discount on acquisition and includes transaction costs that are an integral part of the
effective interest rate.
Impairment of financial assets
The Group assesses on each balance sheet date whether there is any objective evidence that a financial asset or a group of financial assets
is impaired. A financial asset or a group of financial assets is deemed to be impaired if there is objective evidence of impairment as a result
of one or more events that have occurred after the initial recognition of the asset and if the loss event has an impact on the estimated
future cash flows of the financial asset that can be reliably estimated.
Evidence of impairment may include indications that the debtors or a group of debtors are experiencing significant financial difficulty, default
or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and where
observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic
conditions that correlate with defaults.
Assets carried at amortized cost
If there is objective evidence that an impairment loss on loans and receivables carried at amortized cost has been incurred, the amount
of the loss is measured as the difference between the asset’s carrying amount and the present value of future cash flows discounted at
the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account.
The amount of the loss shall be recognized in the period of loss.
The Group first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant,
and individually or collectively for financial assets that are not individually significant. If it is determined that no objective evidence of impairment
exists for an individually assessed financial asset, whether significant or not, the asset is included in a group of financial assets
with similar credit risk characteristics and the group of financial assets is collectively assessed for impairment. Assets that are individually
assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment
of impairment.
If within a subsequent period the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring
after the impairment was recognized, the previously recognized impairment loss is reversed. Any subsequent reversal of an impairment
loss is recognized in profit or loss, to the extent that the carrying value of the asset does not exceed its amortized cost on the reversal date.
In relation to trade receivables, individual provision for impairment is made when there is objective evidence (such as the probability of
insolvency or significant financial difficulties of the debtor) that the Group will not be able to collect all of the amounts due under the original
terms of the invoice. For trade receivables not individually impaired the Group implemented a policy to determine the best estimation of
the fair values. Such estimates are based on analyses of historical trends, the Group’s experience and market observations. The estimates
are reviewed and adjusted if appropriate at each financial year-end. The carrying amount of the receivables is reduced through the use of
an allowance account. Impaired debts are derecognized when they are assessed as uncollectible.
Available-for-sale financial investments
If an available-for-sale asset is impaired, an amount comprising the difference between its cost (net of any principal payment and amortization)
and its current fair value, less any impairment loss previously recognized in the income statement, is transferred from equity to the
income statement. Reversals in regard to equity instruments classified as available-for-sale are not recognized in the income statement.
Reversals of impairment losses on debt instruments are reversed through the income statement if the increase in fair value of the instrument
can be objectively related to an event occurring after the impairment loss was recognized in the income statement.
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Consolidated and Annual Financial Statements 2009
Derecognition of financial assets and liabilities
Financial assets
A financial asset is derecognized when:
the rights to receive cash flows from the asset have expired; or
the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash
flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Group has transferred
substantially all the risks and rewards of the asset or (b) the Group has neither transferred nor retained substantially all the risks
and rewards of the asset, but has transferred control of the asset.
Financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired.
Where a financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as a derecognition of the original liability. The recognition of a new
liability and the difference in the respective carrying amounts is recognized in the income statement.
Derivative financial instruments, including hedge accounting
The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Derivatives are initially
recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured at fair value. Attributable transaction
costs are recognized in the income statement when incurred.
Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in fair value on derivatives during the year that do not qualify for hedge accounting and the
ineffective portion of an effective hedge are taken directly into the income statement.
The fair value of forward currency contracts is the difference between the forward exchange rate and the contract rate. The forward
exchange rate is referenced to current forward exchange rates for contracts with similar maturity profiles. The fair value of interest swap
contracts is determined by reference to market value for similar instruments.
For the purpose of hedge accounting, hedges are classified as:
fair value hedges when hedging the exposure to change in the fair value of a recognized asset or liability or an unrecognized firm
commitment (except for foreign currency risk); or
cash flow hedges when hedging exposure to variability in cash flow that is either attributable to a particular risk associated with a
rec ognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment;
or
hedges of a net investment in a foreign operation.
To qualify for hedge accounting, the hedging relationship must meet several strict conditions regarding documentation, probability of
occurrence, hedge effectiveness and reliability of measurement. If these conditions are not met, then the derivative instrument does not
qualify for hedge accounting. In this case, the hedging instrument and the hedged item are valued independently of one another. The
derivative hedging instrument is reported at fair value with the changes in fair value included in income or expenses. The hedging instruments
are classified as current or non-current or separated into a current and non-current portion based on an assessment of the facts
and circumstances.
Where the Group will hold a derivative as an economic hedge for a period beyond 12 months after the balance sheet date, the derivative
is classified as non-current consistent with the classification of the underlying item.
Embedded derivatives that are not closely related to the host contract are classified in a manner consistent with the cash flows of the host
contract.
Derivative instruments that are designated as hedging instruments and are effective as such are classified in a manner consistent with
the classification of the underlying hedged item. The derivative instrument is separated into a current portion and non-current portion only
if a reliable allocation can be made.
At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes
to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes
identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess
the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flow attributable to
the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are
assessed on an ongoing basis to determine whether they actually have been highly effective throughout the financial reporting periods for
which they were designated.
Panalpina Annual Report 2009

Consolidated and Annual Financial Statements 2009
Hedges that meet the strict criteria for hedge accounting are accounted for as follows:
Fair value hedges
The change in the fair value of hedging derivatives is recognized in the income statement. The change in the fair value of the hedged item
attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognized in the income statement.
For fair value hedges relating to items carried to amortized cost, the adjustment to carrying value is amortized through the income statement
over the remaining term to maturity. Amortization may begin as soon as an adjustment exists and shall begin no later than when the hedge
item ceases to be adjusted for changes in its fair value attributable to the risk being hedged. If the hedge item is derecognized, the unamortized
fair value is recognized immediately in the income statement.
When an unrecognized firm commitment is designated as a hedged item, subsequent cumulative change in the fair value of the firm commitment
attributable to the hedged risk is recognized as an asset or liability with a corresponding gain or loss recognized in the income
statement.
Cash flow hedges
The effective portion of the gain or loss on the hedging instrument is recognized directly in equity, while any ineffective portion is recognized
in the income statement. Amounts taken to equity are transferred to the income statement when the hedged transaction affects profit or
loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. Where the hedged item
is the cost of a non-financial asset or non-financial liability, the amounts taken to equity are transferred to the initial carrying amount of the
non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to
the income statement. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation
as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment
occurs.
Hedges of a net investment
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for as part of the net investment,
are accounted for in a manner similar to cash flow hedges. Gains or losses on the hedging instrument relating to the effective portion
of the hedge are recognized directly in equity while any gains or losses relating to the ineffective portion are recognized in the income
statement. Upon disposal of the foreign operation, the cumulative value of any such gains or losses recognized directly in equity is transferred
to the income statement.
Hedging activities and derivative financial instruments
The Group uses foreign-currency-denominated borrowings and forward contracts to manage its transaction exposures. These currency
forward contracts are not designated as cash flow, fair value or net investment hedges and are entered into for periods consistent with
currency transaction exposure (generally one to three months). Such derivatives do not qualify for hedge accounting.
At year-end, the contract value is calculated on the total volume of individual contracts using the fair value at this time. The positive
replacement value represents the theoretical profit if the open currency contracts were closed out as of 31 December. Correspondingly,
the negative replacement value represents the theoretical loss on closing the currency transactions open as of 31 December.
Provisions
A provision is recognized, as a result of a past event, if the Group has a present legal or constructive obligation that can be estimated
reliably, and if it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting
the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The unwinding of the discount is recognized as finance cost.
Provisions are established in particular for accrued costs of services, freight forwarding claims (short- and long-term), short-term employee
benefits, termination and other long-term employee benefits, post-employment benefit liabilities and decommissioning provision.
Provisions for restructuring are recognized only when the Group has approved a detailed and formal restructuring plan, and the restructuring
either has commenced or has been announced publicly. Future operating costs are not provided for.
Share capital
Ordinary shares are classified as equity. Incremental cost directly attributable to the issue of new shares or options are recognized in equity
as a deduction, net of tax effects, from the proceeds.
Repurchase of share capital (treasury shares)
When share capital recognized as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs,
is net of any tax effects and is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are
presented as a deduction from total equity. Where such shares are subsequently reissued, any consideration received, net of any directly
attributable incremental transaction costs and the related income tax effects, the resulting surplus or deficit on the transaction is
transferred to retained earnings.
Panalpina Annual Report 2009
101

102
Consolidated and Annual Financial Statements 2009
4
Critical accounting estimates and judgments
The preparation of the Group’s consolidated financial statement requires management to make estimates and judgments that affect the reported
amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. Estimates
and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition seldom equal the
related actual results. The estimations and assumptions that have a significant risk of causing a material adjustment to the carrying amount
of assets and liabilities within the next financial year are discussed below.
Estimated impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 15 –
Intangible assets, section Impairment test for goodwill. The recoverable amounts of cash-generating units (CGUs) have been determined
based on value-in-use calculations. The underlying calculations require the use of estimates.
Fair value of financial instruments
Where the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be derived from future markets, it is
determined using the valuation technique including the discounted cash flow model. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a degree of judgment is required to establish fair value. The judgments
include considerations of inputs such as credit risk, liquidity risk and volatility. Changes in assumptions concerning these factors could
affect the reported fair value of financial instruments.
Pension and other post-employment benefits
The cost of defined benefit pension plans and other post-employment medical benefits as well as the present value of the pension obligation
are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates
of return of assets, future salary increases, mortality rates and future pension increases. All assumptions are reviewed at each reporting
date. When determining the appropriate discount rate, management considers the interest rates on high-quality corporate bonds (with
an AAA or AA rating) in the respective country and appropriate duration. The mortality rate is based on publicly available mortality tables
for the specific country. Future salary increases and pension increases are based on expected future inflation rates for the specific country.
Such differences are recognized in full directly in equity in the period in which they occur without affecting the income statement. At 31 December
2009 the Group had a surplus of the fair value of plan assets over the present value of funded obligations of CHF 11.9 million (2008:
deficit of CHF 10.6 million) for funded plans and a negative present value of unfunded plans of CHF 36.6 million (2008: CHF 32.3 million)
for unfunded plans (see note 7). The actuarial assumptions used may differ materially from actual results due to changes in market and
economic conditions, higher or lower withdrawal rates, longer or shorter life spans of participants and other changes in the factors assessed.
These differences could impact the assets or liabilities recognized in the balance sheet in future periods.
Provisions
A number of subsidiaries are subject to litigation arising from the normal conduct of their businesses, as a result of which claims could
be raised against them.
The Group has established a captive reinsurance company, Mondi Reinsurance Ltd., Hamilton, Bermuda, that insures a dedicated risk
portion of its errors and omissions, transport-operator and commercial general liability programs. The exposure of its captive reinsurance
company is limited by a third-party insurer that covers losses exceeding an amount of CHF 1 million on a single case basis and a total
aggregate limit of CHF 9 million annually, for claims exceeding CHF 50,000 per incident. In a consolidated view, the Group, through its
captive reinsurance company, bears the risks insured with its captive reinsurance company up to the limit as if such risks were not insured
at all. Furthermore, as third-party coverage is subject to a considerable deductible and a total aggregated limit per year, the Group,
in effect, bears the risk of damages, losses and claims that are above such aggregated limits as well. The Group used for the abovementioned
provision an actuarial calculation method, which requires for the calculation of the “incurred but not reported reserves (IBNR),”
among other estimations, the overall circumstances which may impact the future losses, such as the growth of business. At 31 December
2009 the recognized liability for claims amounts to CHF 47.6 million (2008: CHF 48.8 million). If the management decided to use the
optimal actuarial calculation method, which only takes into consideration the linear loss development according to historical figures, the
carrying amount of claim provisions would be approximately CHF 0.5 million lower (2008: CHF 1.1 million). Using a more conservative
percentile, the carrying amount of claim provisions would be approximately CHF 0.3 million higher (2008: CHF 0.7 million).
The Group is also subject to legal and regulatory proceedings and government investigations in various jurisdictions. These proceedings
are related to the area of competition law and to possible breaches of anticorruption legislation. Such proceedings may result in criminal or
civil sanctions, penalties or damages against the Company. Regulatory and legal proceedings as well as government investigations involve
complex legal issues, the outcome of which is difficult to predict. Accordingly, management’s judgment is affected in determining
whether it is more likely or not that such a proceeding will result in an outflow of resources and whether the amount of the obligation can
be reliably estimated. These judgments are subject to change as new information becomes available. Upon resolution of any legal or regulatory
proceeding or government investigation, the Group may incur a provision for such matters. It cannot be ruled out that the financial
condition or results of operations of the Group will be materially affected. For additional information see note 31 – Pending legal claims.
Related legal costs are recognized when incurred.
Panalpina Annual Report 2009

Consolidated and Annual Financial Statements 2009
Deferred income tax assets
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which
the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized,
based upon the likely timing and level of future taxable profits.
The carrying value of recognized tax loss carry-forwards amounts to CHF 87.0 million (2008: CHF 33.1 million) and unrecognized tax loss
carry-forwards to CHF 55.0 million (2008: CHF 29.7 million). Further details are provided in note 27.
If the Group were able to recognize all unrecognized deferred tax assets, actual profit would increase by CHF 15.0 million (2008:
CHF 5.4 million). If the Group failed to achieve the expected future taxable profits, the actual profit would decrease by CHF 26.7 million
(2008 CHF 7.8 million).
Income taxes
At 31 December 2009, the net liability for current income taxes amounts to CHF 12.7 million (2008: CHF 22.0 million). As the Group is
subject to income taxes in numerous jurisdictions, significant judgments are required in determining worldwide provisions for income taxes.
Some of these estimates are based on interpretations of existing tax laws or regulations. Management believes that the estimates are
reasonable and that the recognized liabilities for income-tax-related uncertainties are adequate. Various external factors may have favorable
or unfavorable effects on income taxes. These factors include, but are not limited to, changes in tax law regulations and / or rates,
changing interpretation of existing tax laws or regulations and changes in management estimations. Such changes that arise could affect
the assets and liabilities recognized in the balance sheet in future periods.
Panalpina Annual Report 2009
103

104
Consolidated and Annual Financial Statements 2009
5
Operating segment information
Segment profit or loss Europe / Africa /
Middle East / CIS North America
Panalpina Annual Report 2009
Central and South
America
in million CHF 2009 2008 1 2009 2008 1 2009 2008 1
External forwarding services 3,189 4,976 1,176 1,751 702 948
Intragroup forwarding services 1,281 2,220 349 466 121 157
Net forwarding revenue 4,470 7,196 1,525 2,217 823 1,105
Forwarding services from third parties (3,739) (6,223) (1,269) (1,900) (678) (938)
Gross profit 731 973 256 317 145 167
Personnel expenses (453) (528) (173) (199) (74) (80)
Other operating expenses (235) (306) (110) (104) (56) (63)
EBITDA 43 139 (27) 14 15 24
Depreciation and amortization (26) (23) (6) (7) (4) (4)
Goodwill impairment (2) 0 0 0 0 0
Operating result (EBIT) 15 116 (33) 7 11 20
Finance income
Finance costs
Profit before income tax (EBT)
Income tax expenses
Consolidated profit
Segment assets and liabilities Europe / Africa /
Middle East / CIS North America
Central and South
America
in million CHF 2009 2008 1 2009 2008 1 2009 2008 1
Segment assets 735 951 201 235 158 161
Segment liabilities 439 517 149 145 61 63
1 Certain prior-year fi gures have been restated / reclassifi ed to conform with the current period’s presentation due to introduction of IFRS 8.
Information about country of domicile (Switzerland) and major countries of the above-mentioned segments:
Switzerland Germany
United States of
America
in million CHF 2009 2008 2009 2008 2009 2008
Net forwarding revenue 900 1,698 1,176 1,706 1,251 1,786
Segment assets 73 114 176 231 164 185
The Group does not have sales in excess of 10 percent of the total net forwarding revenues to any single external customer.
Information by business
Air Freight Ocean Freight
Supply Chain
Management
in million CHF 2009 2008 2009 2008 2009 2008
Net forwarding revenue 2,714 4,334 2,360 3,299 884 1,245
Forwarding services from third parties (2,152) (3,590) (1,902) (2,742) (527) (804)
Gross profit 562 744 458 557 357 441
The Group’s business can be divided into three divisions: Air Freight, Ocean Freight and Supply Chain Management.

Consolidated and Annual Financial Statements 2009
Asia / Pacific Total segment Eliminations Corporate Total Group
2009 2008 1 2009 2008 1 2009 2008 1 2009 2008 1 2009 2008 1
891 1,203 5,958 8,878 0 0 0 0 5,958 8,878
1,279 1,326 3,030 4,169 (3,030) (4,169) 0 0 0 0
2,170 2,529 8,988 13,047 (3,030) (4,169) 0 0 5,958 8,878
(1,925) (2,244) (7,611) (11,305) 3,030 4,169 0 0 (4,581) (7,136)
245 285 1,377 1,742 0 0 0 0 1,377 1,742
(104) (110) (804) (917) 0 0 (75) (75) (879) (992)
(77) (67) (478) (540) 0 0 60 31 (418) (509)
64 108 95 285 0 0 (15) (44) 80 241
(7) (9) (43) (43) 0 0 (5) (5) (48) (48)
0 0 (2) 0 0 0 0 0 (2) 0
57 99 50 242 0 0 (20) (49) 30 193
Asia / Pacific Total segment
Non-segment
assets
7 15
(23) (44)
14 164
(4) (50)
10 114
Non-segment
liabilities Total Group
2009 2008 1 2009 2008 1 2009 2008 1 2009 2008 1 2009 2008 1
304 262 1,398 1,609 525 362 1,925 1,971
219 163 868 888 193 212 1,061 1,100
Brazil Republic of China
2009 2008 2009 2008
251 310 1,047 989
38 34 129 90
Unallocated Total Group
2009 2008 2009 2008
0 0 5,958 8,878
0 0 (4,581) (7,136)
0 0 1,377 1,742
Panalpina Annual Report 2009
105

106
6
Consolidated and Annual Financial Statements 2009
Personnel expenses
in thousand CHF 2009 2008
Salaries and wages 678,514 777,014
Cost of defined contribution plans 47,059 49,480
Expenses for defined benefit plans (note 7) 6,632 5,361
Social security costs 87,706 94,266
Staff training 5,852 6,899
Share-based compensation (note 8)
Equity-settled compensation plan 4,254 3,101
Cash-settled compensation plan 1,443 0
Other personnel-related expenses 47,682 56,374
Total personnel expenses 879,142 992,495
Number of employees 13,570 14,804
thereof in Switzerland 737 778
7
Post-employment benefit obligations
The Group has numerous pension funds. Retirement benefits vary from plan to plan, reflecting applicable local practices and legal
requirements. Defined benefit pension plans exist predominantly in Switzerland, Germany, Taiwan, Japan and France. The expenses of
the defined contribution plans are charged to personnel expenses.
The amounts recognized in the balance sheet are determined as follows:
in thousand CHF 2009 2008
Fair value of plan assets 208,217 213,520
Present value of funded obligation (196,307) (224,168)
Surplus (deficit) 11,910 (10,648)
Present value of unfunded obligations (36,592) (32,272)
(Net liability) net asset recognized in balance sheet (24,682) (42,920)
thereof recognized as asset 14,444 0
thereof recognized as liability (39,126) (42,920)
The following amounts relating to defined benefit pension plans were recorded in the income statement:
in thousand CHF 2009 2008
Net pension cost for year ending
Current service cost (12,568) (13,992)
Recognized past-service cost (50) 0
Interest cost (8,510) (9,009)
Expected return on plan assets 8,828 11,177
Employee contribution 4,518 5,387
Settlements 976 933
Curtailments 174 143
Expenses for defined benefit plans (6,632) (5,361)
Panalpina Annual Report 2009

The movement in the defined benefit obligation over the year is as follows:
Consolidated and Annual Financial Statements 2009
in thousand CHF 2009 2008
Changes in defined benefit obligation (DBO)
DBO at beginning of year (256,441) (268,675)
Settlement with pension assets 0 6,348
Current service cost (12,568) (13,992)
Recognized past-service cost (50) 0
Interest cost (8,510) (9,009)
Actuarial gains (losses) recognized in equity (2,422) 10,070
Benefits paid 46,686 14,932
Curtailments 174 143
Currency impact 232 3,742
DBO at end of year (232,899) (256,441)
The movement in the fair value of plan assets of the year is as follows:
in thousand CHF 2009 2008
Changes in fair value of plan asset
Fair value at beginning of year 213,520 255,989
Settlement with DBO 0 (6,348)
Employer contributions 5,504 6,473
Employee contributions 4,518 5,387
Expected return on plan assets 8,828 11,177
Actuarial gains (losses) recognized in equity 21,330 (45,239)
Benefits paid (45,485) (13,803)
Currency impact 2 (116)
Fair value at end of year of plan asset 208,217 213,520
In 2009, the actual return on plan assets was CHF 30.2 million (2008: CHF – 34.1 million).
An analysis of the amounts recognized in equity is shown in the table below:
in thousand CHF 2009 2008
Analysis of amounts recognized in equity
Recognized in equity on 1 January 112,919 83,961
Actuarial (gains) losses plan asset (21,330) 45,239
Actuarial losses (gains) DBO 2,422 (10,070)
Effect from asset ceiling 0 (5,753)
Currency impact (6) (458)
Recognized in equity on 31 December 94,005 112,919
Plan assets are comprised as follows:
in thousand CHF 2009 2008
Major categories of plan assets
in CHF in % in CHF in %
Cash and cash equivalents 3,814 1.83 % 6,433 3.01 %
Equity investments 65,522 31.47 % 67,194 31.47 %
Bonds 106,866 51.33 % 108,863 50.98 %
Hedge funds and private equity 2,878 1.38 % 7,983 3.74 %
Real estate funds 23,484 11.28 % 23,047 10.80 %
Others 5,653 2.71 % 0 0.00 %
Panalpina Annual Report 2009
107

108
Consolidated and Annual Financial Statements 2009
The principal actuarial assumptions used (expressed as weighted averages) are as follows:
Panalpina Annual Report 2009
2009 2008
Discount rate 3.56 % 3.58 %
Expected return on pension plan assets 4.74 % 4.49 %
Future salary increase 1.78 % 2.66 %
Future pension increase 1.22 % 1.19 %
The overall expected return of plan assets is based on country-specific long-term market expectations at the beginning of the period.
A five-year summary of the Group’s defined benefit plans is shown in the table below:
in thousand CHF 2009 2008 2007 2006 2005
DBO 232,899 256,441 268,675 263,151 242,137
Plan assets (208,217) (213,520) (255,989) (266,449) (261,744)
Deficit (surplus) 24,682 42,920 12,686 (3,298) (19,607)
Experienced gains (losses) on plan liability 2,422 10,070 (8,325) (14,210) 9,832
Experienced gains (losses) on plan asset 21,330 (45,239) (9,378) (514) 11,993
8
Share and option ownership program
The Group operates several share and option ownership programs. The members of the Board of Directors, the members of the Executive
Board as well as selected preferential employees had the option of voluntarily participating in the share and option ownership program
introduced in 2005 and continued in a modified program in 2006, 2007, 2008 and in the reporting year.
Management Incentive Program I (MIP I)
The Group introduced the Management Incentive Program I in 2005. Participants in the program were offered a certain number of Panalpina
World Transport (Holding) Ltd. (PWT) registered shares at the offering price of CHF 80.00 each with a lock-up period of one year. For every
purchased share, the subscribers of this program were allocated two options, each option entitling them to purchase one further share at
the offering price. The options cannot be settled in cash. The options were exercisable unconditionally starting one year from the grant
date and had a vesting period of 1 – 2 years. The option valuation was performed using the Black-Scholes valuation model. The significant
inputs into the model were the standard deviation of expected share price returns of 22.59 %, dividend yield of 2.05 %, annual risk-free
interest rate of 1.103 % as well as the share price, the exercise price and the option life.
At the end of September 2008, a total of 17,496 unvested options within the MIP I expired. During the period under review no additional
options were granted within the scope of the MIP I. On the balance sheet date no options within the scope of the MIP I were outstanding.
Management does not intend to grant any further options from the above-mentioned plan.
Management Incentive Program II (MIP II)
In June 2006, the existing Management Incentive Program I was continued in a slightly modified Management Incentive Program II. Participants
in this modified program had the right to purchase shares with a discount of 25 % based on the share price corresponding to the
average closing price of one share at the SIX Swiss Exchange during the months January to May in the respective year of purchase. The
difference between the discounted share price on the grant date and the share price paid by the participants is recognized as personnel
expenses on the date of the issue of the shares. The shares are subject to a one-year lock-up period. For every purchased share under this
plan, the Group granted one option free of charge to the participant. The options have a contractual term of six years and a vesting period
of one to three years. Each option entitles the participant to obtain one share of Panalpina World Transport (Holding) Ltd. at a predetermined
strike price which equals the average closing price of one share at the SIX Swiss Exchange during the months January to May in
2006. The share options cannot be settled in cash. In May 2007, the Board of Directors decided to divide the Management Incentive
Program II into an International Incentive Plan (the “International Management Incentive Plan”) and a “United States Management Incentive
Plan.” Beneficiaries of the “United States Management Incentive Plan” are selected preferential employees of the subsidiary in the United
States of America and members of the Board of Directors with residence in the United States of America. The conditions of this plan do
not differ from those of the “International Management Incentive Plan” except for the strike price, which equals the closing price of one
share at the SIX Swiss Exchange on the date of disbursement. Under this changed program, beneficiaries of the “United States Management
Incentive Plan” holding options to purchase shares of the Group’s capital stock were given the opportunity to exchange their existing
options for new options to purchase an equal number of shares. 3,550 options with a strike price of CHF 111.30 were tendered pursuant
to the “United States Management Incentive Plan.” In May 2007, those options were accepted and cancelled by the Group. The Group
undertook to grant new options on a one-for-one basis, in lieu of the tendered options, to the affected employees. The new options, which
totaled 5,350, were granted with a strike price of CHF 114.00. The options have a remaining contractual option term of 4 years.

Consolidated and Annual Financial Statements 2009
The following table lists the parameters based on which the option valuation of both plans was performed using the Black-Scholes model:
in CHF
International
Management
Incentive
Plan II
United States
Management
Incentive
Plan II
Market price of share 114.00 114.00
Exercise price of option 111.30 114.00
Expected volatility (in %) 30.00 30.00
Option life (in years) 5 5
Dividend yield (in %) 1.78 1.78
Risk-free interest rate based on Swiss government bonds (in %) 2.670 2.670
Management Incentive Program III (MIP III)
A third share and option program was introduced in June 2007 which conceptually follows in its entirety the modified program of 2006.
Participants of the “International Management Incentive Plan III” subscribed 38,921 options with a strike price of CHF 201.10. Participants
in the “United States Management Incentive Plan III” subscribed 4,096 options with a strike price of CHF 251.00. The difference between
the discounted share price on the grant date and the share price paid by the participants is recognized as personnel expense on the date
of the issue of the shares. The options have a remaining contractual option term of 5 years.
The following table lists the parameters based on which the option valuation of both plans was performed using the Black-Scholes model:
in CHF
International
Management
Incentive
Plan III
United States
Management
Incentive
Plan III
Market price of share 251.00 251.00
Exercise price of option 201.10 251.00
Expected volatility (in %) 22.74 22.74
Option life (in years) 5 5
Dividend yield (in %) 1.20 1.20
Risk-free interest rate based on Swiss government bonds (in %) 4.250 4.250
Management Incentive Program IV (MIP IV)
A fourth share and option program was introduced in June 2008. The conditions of this share and option program are identical to the Management
Incentive Program II of the Group except for the purchase price of the shares, which equals 75 % of the closing price of one
share at the SIX Swiss Exchange on 30 April 2008. The difference between the discounted share price on the grant date and the share
price paid by the participants is recognized as personnel expense on the date of the issue of the shares. The plan is also divided into
an “International” and a “United States” Management Incentive Plan. The exercise price of options of the “International Management Incentive
Plan” is equal to the closing price of one share at the SIX Swiss Exchange on 30 April 2008. The exercise price of options of the
“United States Management Incentive Plan” is equal to the share price at the SIX Swiss Exchange on the grant date. Participants in the
“International Management Incentive Plan IV” subscribed 32,436 options with a strike price of CHF 132.00. Participants in the “United
States Management Incentive Plan IV” subscribed 4,689 options with a strike price of CHF 122.40.
The following table lists the parameters based on which the option valuation of both plans was performed using the Black-Scholes model:
in CHF
International
Management
Incentive
Plan IV
United States
Management
Incentive
Plan IV
Market price of share 122.40 122.40
Exercise price of option 132.00 122.40
Expected volatility (in %) 50.28 50.28
Option life (in years) 5 5
Dividend yield (in %) 2.39 2.39
Risk-free interest rate based on Swiss government bonds (in %) 3.408 3.408
Panalpina Annual Report 2009
109

110
Consolidated and Annual Financial Statements 2009
Management Incentive Plan 08 / 09 (MIP 08 / 09)
As in previous years a management incentive plan was set up in 2009. The terms of this share and option program are identical to the
Management Incentive Program IV as described above apart from the strike price of the “International Management Incentive Plan” which
equals the closing price of the share on the cut-off day at the SIX Swiss Exchange. Under this program participants of the “International
Management Incentive Plan” received 65,921 options with a strike price of CHF 62.50 and participants of the “United States Management
Incentive Plan” received 5,132 options with a strike price of CHF 83.05.
The weighted average fair value of the share options granted during the reporting period is determined using the Black-Scholes valuation
model, applying the following significant inputs into the model:
in CHF
Panalpina Annual Report 2009
International
Management
Incentive
Plan 08 / 09
United States
Management
Incentive
Plan 08 / 09
Market price of share 83.05 83.05
Exercise price of option 62.50 83.05
Expected volatility (in %) 56.91 56.91
Option life (in years) 5 5
Dividend yield (in %) 2.84 2.84
Risk-free interest rate based on Swiss government bonds (in %) 2.360 2.360
The following table summarizes the movements in the number of share options outstanding and their related average exercise prices:
Average exercise
price
per share
(in CHF)
2009 2008
Options
(number)
Average exercise
price
per share
(in CHF)
Options
(number)
Options outstanding on 1 January 148.39 113,002 137.77 107,445
Granted 63.98 71,053 132.23 40,250
Exercised 0.00 0 83.17 (9,319)
Forfeited 154.99 (2,570) 162.01 (6,874)
Expired 154.34 (2,116) 82.33 (18,500)
Options outstanding on 31 December 114.79 179,369 148.39 113,002
Options exercisable on 31 December 141.48 68,062 136.01 28,452
During the reporting year the following numbers of options were exercised with the respective exercise prices:
Exercise
price
of option
(in CHF)
2009 2008
Number of
exercised
options
Exercise
price
of option
(in CHF)
Number of
exercised
options
Management Incentive Plan I 0.00 0 80.00 8,377
International Management Incentive Plan II 0.00 0 111.30 922
United States Management Incentive Plan II
Weighted average exercise price of options
0.00 0 114.00 20
exercised during the year 0.00 83.17

The average exercise prices and the expiry date of the outstanding options at period-end are as follows:
Consolidated and Annual Financial Statements 2009
Average
exercise price
per share (in CHF)
2009
Number of options
expiring at year-end
2012 111.63 38,591
2013 206.46 34,123
2014 130.83 36,077
2015 63.99 70,578
Total 114.79 179,369
The Group holds its own shares in order to meet its obligations under the Management Incentive Programs. These own shares are
deducted from equity (note 23).
The members of the Executive Board and the Boards of Directors did not participate in the above-mentioned incentive plans.
In 2009, the target bonus scheme for Executive Board members as well as the remuneration of the Board of Directors has been adjusted
to focus on the company’s sustainable mid- and long-term success:
Executive Board Mid-Term Incentive Plan
Only 60 % of the bonuses, which continue to be set by the achievement of annually reviewed Group key performance indicators (KPI’s)
and individual performance targets, have been paid out in cash whereas the remainder has been paid out in shares with a restriction period
of one year. This number of shares will be matched by the company after this restriction period. In addition the members of the Executive
Board will receive the corresponding number of shares (11,470), based on the share’s closing price on 30 April 2009 of CHF 62.50.
These shares will thereafter be subject to a further one-year restriction period.
Executive Board Long-Term Incentive Plan
Furthermore, a long-term incentive plan has been implemented which rewards long-term value creation measured by economic profit.
Under this plan, which has a five year cycle, the individual Executive Board member is entitled to an equal share of the respective pool after
the expiry of the five-year plan period. This plan can be cash settled. The carrying amount of the liability at 31 December 2009 amounts to
CHF 1,443 thousand which is also the intrinsic value.
Board of Directors Restricted Stock Award Plan
A restricted stock award plan for the Board of Directors has been introduced in 2009. Part of each Board member’s remuner ation was
settled in free shares of the company. The corresponding number of shares of 800 per member was based on the share’s closing price on
30 April 2009 of CHF 62.50. The shares have a one-year restriction period.
Costs of share-based compensation
Recognized costs of share-based compensation was as follows:
in CHF 2009 2008
Employee share plan 3,903,988 1,250,692
Option plan 1,793,041 1,849,910
Total cost share-based payments 5,697,029 3,100,602
Share-based compensation costs are not reported in operating segments. They are reported under “Corporate”.
Panalpina Annual Report 2009
111

112
9
Consolidated and Annual Financial Statements 2009
Other operating expenses
in thousand CHF 2009 2008
Administrative expenses 79,051 74,759
Communication expenses 65,037 74,851
Rent and utilities expenses 182,468 196,956
Travel and promotion expenses 34,773 49,943
Insurance expenses and claims 8,283 46,220
Bad debt and collection expenses 11,046 12,017
Other 37,860 54,505
Total other operating expenses 418,518 509,251
Rent and utilities expenses includes rentals amounting to CHF 97.5 million (2008: CHF 94.4 million) and lease of machinery, equip ment
and vehicles of CHF 20.8 million (2008: CHF 23.4 million). Bad debt and collection expenses include CHF 1.4 million (2008: CHF 2.2 million)
credit insurance premiums.
10
Gains and losses on sales of non-current assets
in thousand CHF 2009 2008
Gains on sales of property, plant and equipment 972 1,410
Losses on sales of property, plant and equipment (477) (533)
Total net gains on sales of non-current assets 495 877
In the current year, there were no significant items. In 2008, net gains on sales of assets resulted mainly from the sale of operational equipment
and the services portfolio in Nigeria.
Panalpina Annual Report 2009

11
Finance income and costs
Consolidated and Annual Financial Statements 2009
in thousand CHF 2009 2008 1
Interest income
Interest income on current bank accounts 2,622 6,531
Interest income on financial assets at fair value through profit or loss 16 27
Interest differential on forwards and swaps 2,127 4,394
Interest income on loans 1,502 3,110
Cash discount income 81 87
Subtotal interest income 6,348 14,149
Dividend on available-for-sale financial assets 228 804
Fair value adjustments on financial assets 36 0
Total finance income 6,612 14,953
Interest expenses
Interest expenses on loans (7,717) (3,845)
Interest expenses on current bank accounts (635) (5,054)
Interest differential on forwards and swaps (6,675) (13,484)
Interest expenses on financial leasing (120) (100)
Cash discount expenses (45) (77)
Subtotal interest expenses (15,192) (22,560)
Bank charges (3,424) (4,344)
Exchange differences (2,153) (13,258)
Guarantee fees expenses (848) (897)
Other financial expenses (1,036) (2,453)
Total finance costs (22,653) (43,512)
Net finance costs (16,041) (28,559)
1 The prior year’s presentation has been adapted to the 2009 format.
12
Income tax expenses
in thousand CHF 2009 2008
Current income taxes
Current period 23,392 60,542
Adjustments for prior periods 4,310 (2,630)
Total income taxes 27,702 57,912
Deferred income taxes (note 27)
Origination and reversal of taxes on temporary differences and tax loss carry forwards (25,145) (5,183)
Effect of changes in the tax rate on temporary differences 987 358
Utilization of non-recognized tax loss carry-forwards (118) (2,438)
Total deferred income taxes (24,276) (7,263)
Total income tax expenses 3,426 50,649
Panalpina Annual Report 2009
113

114
Consolidated and Annual Financial Statements 2009
Management decided to calculate the applicable standard tax rate based on the standard tax rate in Basel, headquarters domicile.
Hence the expected tax rate declined from 27 % to 23.37 %, as in previous years applicable tax rate was calculated as weighted average.
For comparison reason the previous year has been recalculated to conform current year’s presentation.
The Group’s effective tax rate can be reconciled to the Group’s average expected tax rate as follows:
in thousand CHF 2009 2008
Profit before income tax 13,869 164,418
Tax at the applicable tax rate of 23.37 % (2008: 23.95 %) 3,241 39,385
Effect of differing national tax rates (12,152) (8,182)
Utilization of not yet recognized tax loss carry-forwards 0 (2,438)
Recognition of deferred tax assets from previous periods (118) 1,822
Not yet recognized tax loss carry-forwards 157 4,405
Adjustment of previous year tax provision 4,310 (2,630)
Effect of changes in the tax rate on temporary differences 987 358
Withholding tax on dividends received 480 4,915
Expenses not deductible for tax purposes and non-taxable income 6,254 12,698
Miscellaneous 267 316
Actual tax charge 3,426 50,649
Income tax recognized in consolidated statement of comprehensive income:
in thousand CHF Before tax
Panalpina Annual Report 2009
2009 2008
Tax
benefit
(expense)
Net of tax Before tax
Tax
benefit
(expense)
Net of tax
Translation and exchange differences 9,416 0 9,416 (71,666) 0 (71,666)
Available-for-sale financial assets (943) 0 (943) 0 0 0
Other taxes directly recognized in equity
Actuarial gains (losses)
0 (127) (127) 0 0 0
on defined benefit plans 18,914 (4,338) 14,576 (28,958) 6,969 (21,989)
Defined benefit obligation jubilee 0 0 0 (1,704) 418 (1,286)
Total 27,387 (4,465) 22,922 (102,328) 7,387 (94,941)

13
Earnings per share
Basic earnings per share
Consolidated and Annual Financial Statements 2009
Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders of the Company by the weighted average
number of ordinary shares outstanding (total shares less treasury shares) during the period.
in thousand CHF 2009 2008
Consolidated profit attributable to owners of the parent 8,492 112,722
Weighted average number of ordinary shares outstanding 23,657 23,961
Basic earnings per share (in CHF) 0.36 4.70
Diluted earnings per share
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion
of all dilutive potential ordinary shares. The Group only has share options outstanding that can be categorized as dilutive potential ordinary
shares. For the share options, a calculation is made to determine the number of shares that could have been acquired at fair value based
on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared
with the number of shares that would have been issued assuming the exercise of the share options.
in thousand CHF 2009 2008
Consolidated profit attributable to owners of the parent 8,492 112,722
Weighted average number of ordinary shares outstanding 23,657 23,961
Adjustments for share options 7 0
Adjustments for share ownership program 15 0
Weighted average number of ordinary shares for diluted earnings per share 23,679 23,961
Diluted earnings per share (in CHF) 0.36 4.70
At 31 December 2009 113,923 options (2008: 116,054 options) were excluded from the diluted weighted average number of ordinary
shares calculation as their effect would have been anti-dilutive.
14
Property, plant and equipment
2009 (in thousand CHF)
Land and
buildings
Machinery
and
equipment Vehicles
Construction
in
progress Total
Acquisition costs
Balance on 1 January 132,264 229,115 40,384 12,541 414,304
Translation differences 2,148 2,733 (114) (326) 4,441
Additions 5,555 19,708 3,621 3,534 32,418
Disposals (6,134) (12,331) (2,490) 0 (20,955)
Balance on 31 December 133,833 239,225 41,401 15,749 430,208
Accumulated depreciation
Balance on 1 January 74,529 174,451 17,628 0 266,608
Translation differences 517 2,054 99 0 2,670
Additions 7,248 22,300 7,676 0 37,224
Disposals (5,893) (9,643) (2,031) 0 (17,567)
Balance on 31 December 76,401 189,162 23,372 0 288,935
Net book value on 1 January 57,735 54,664 22,756 12,541 147,696
Net book value on 31 December 57,432 50,063 18,029 15,749 141,273
Of which net book value of assets
acquired under finance leases 432 0 2,226 0 2,658
Panalpina Annual Report 2009
115

116
Consolidated and Annual Financial Statements 2009
2008 (in thousand CHF)
Acquisition costs
Panalpina Annual Report 2009
Land and
buildings
Machinery
and
equipment Vehicles
Construction
in
progress Total
Balance on 1 January 160,807 252,537 47,612 3,672 464,628
Translation differences (19,413) (28,943) (7,211) (256) (55,823)
Additions 4,449 28,691 3,632 9,133 45,905
Disposals (13,662) (19,273) (7,471) 0 (40,406)
Reclassifications 83 (3,897) 3,822 (8) 0
Balance on 31 December 132,264 229,115 40,384 12,541 414,304
Accumulated depreciation
Balance on 1 January 81,038 193,361 22,609 0 297,008
Translation differences (8,096) (24,080) (4,149) 0 (36,325)
Additions 8,058 23,260 4,736 0 36,054
Disposals (6,539) (16,658) (6,932) 0 (30,129)
Reclassifications 68 (1,432) 1,364 0 0
Balance on 31 December 74,529 174,451 17,628 0 266,608
Net book value on 1 January 79,769 59,176 25,003 3,672 167,620
Net book value on 31 December 57,735 54,664 22,756 12,541 147,696
Of which net book value of assets
acquired under finance leases 375 0 1,713 0 2,088
15
Intangible assets
2009 (in thousand CHF) Goodwill Software
Brands /
Customer
lists
Other
intangible
assets Total
Acquisition costs
Balance on 1 January 43,546 63,101 22,392 15,754 144,793
Translation differences 769 713 1,253 188 2,923
Additions 0 9,270 6 149 9,425
Disposals 0 (9,205) 0 (15,403) (24,608)
Balance on 31 December 44,315 63,879 23,651 688 132,533
Accumulated depreciation or impairment losses
Balance on 1 January 0 40,865 14,774 15,421 71,060
Translation differences 0 415 858 337 1,610
Additions 1,823 7,495 3,123 153 12,594
Disposals 0 (9,205) 0 (15,403) (24,608)
Balance on 31 December 1,823 39,570 18,755 508 60,656
Net book value on 1 January 43,546 22,236 7,618 333 73,733
Net book value on 31 December 42,492 24,309 4,896 180 71,877

2008 (in thousand CHF) Goodwill Software
Acquisition costs
Consolidated and Annual Financial Statements 2009
Brands /
Customer
lists
Other
intangible
assets Total
Balance on 1 January 60,185 58,717 30,286 16,243 165,431
Translation differences (4,323) (7,143) (7,894) 250 (19,110)
Additions 0 12,461 0 27 12,488
Disposals (12,316) (1,680) 0 (20) (14,016)
Reclassifications 0 746 0 (746) 0
Balance on 31 December 43,546 63,101 22,392 15,754 144,793
Accumulated depreciation or impairment losses
Balance on 1 January 11,294 37,869 14,991 15,477 79,631
Translation differences 0 (2,791) (4,761) 281 (7,271)
Additions 0 6,892 4,544 257 11,693
Disposals (11,294) (1,679) 0 (20) (12,993)
Reclassifications 0 574 0 (574) 0
Balance on 31 December 0 40,865 14,774 15,421 71,060
Net book value on 1 January 48,891 20,848 15,295 766 85,800
Net book value on 31 December 43,546 22,236 7,618 333 73,733
The net book value of software is comprised of accumulated internally generated capitalized software development costs of CHF 4.8 million
(2008: CHF 10.3 million).
Impairment test for goodwill
Goodwill is allocated to the Group’s cash-generating units (CGUs) identified according to the country of operation. The recoverable amount
of a CGU is determined based on value-in-use calculations. These calculations use cash flow projections based on financial budgets approved
by management covering a five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth
rates stated below. The growth rate does not exceed the long-term average growth rate for the business in which the CGU operates.
A summary of the goodwill allocation per CGU is presented below:
in thousand CHF 2009 2008
Air Freight division (CGU Airfreight) 31,151 31,151
Grampian International Freight Aberdeen & Beverwijk (CGU Grampian) 7,307 8,366
Panalpina World Transport (Singapore) Pte. Ltd. (CGU Janco) 4,034 4,029
Total goodwill 42,492 43,546
The following key assumptions have been used for the value-in-use calculations of each CGU:
2009 CGU Airfreight CGU Grampian CGU Janco
Growth rate1 2.25 % 3.13 % 3.13 %
Operating expenses in % of forwarding revenues2 98.90 % 98.71 % 95.84 %
WACC3 9.32 % 12.25 % 9.41 %
2008 CGU Airfreight CGU Grampian CGU Janco
Growth rate1 2.00 % 3.00 % 3.25 %
Operating expenses in % of forwarding revenues2 97.70 % 97.85 % 94.38 %
WACC3 11.60 % 12.02 % 11.77 %
1 Weighted average growth rate used to extrapolate cash fl ows beyond the budget period
2 Budgeted operating expenses in % of forwarding revenues
3 Pre-tax discount rate applied to the cash fl ow projections
Panalpina Annual Report 2009
117

118
Consolidated and Annual Financial Statements 2009
The management determined budgeted growth rates based on past performance and its expectations of market development. The
operating expenses as a percentage of forwarding revenues are consistent with the forecasts and past experience. The weighted average
cost of capital (WACC) used are pre-tax and reflect specific risks relating to the relevant CGUs. For the impairment testing procedure the
planning assumptions of prior years were critically reviewed as a result of the recovery of the activities which was realized at a slower pace
than originally expected. For the impairment testing procedure it was assumed that the CGU would achieve sales growth at market growth
for the planning period. It was also assumed that the percentage of operating expenses as a percentage of forwarding revenue will remain
stable.
For the CGU Grampian a minimal change in the assumptions of the growth rate of the gross profit (0.1 percentage points) or the WACC
(0.1 percentage points) would cause the carrying value of goodwill to exceed the recoverable amount.
For both other CGUs the carrying value of goodwill would only exceed the recoverable amount if following changes in the key assumptions
gross profit growth or WACC would occur:
CGU Airfreight
Gross profit growth rate – 38.3 percentage points
WACC + 21.5 percentage points
CGU Janco
Gross profit growth rate – 56.6 percentage points
WACC + 33.4 percentage points
16
Investments
in thousand CHF 2009 2008
Available-for-sale investments 17,794 18,629
Fair value through profit or loss investments 618 818
Loans receivable 166 203
Long-term receivables 15,250 15,752
Other 3,576 2,421
Total investments 37,404 37,823
Long-term receivables primarily include rental and guarantee deposits of CHF 14.9 million (2008: CHF 15.7 million).
Available-for-sale investments – unquoted equity shares
in thousand CHF 2009 2008
Balance on 1 January 18,629 18,773
Translation differences 71 (199)
Additions 42 55
Disposals (5) 0
Fair value adjustments recognized in statement of comprehensive income (943) 0
Balance on 31 December 17,794 18,629
Less: non-current portion 17,794 18,629
Current portion 0 0
Panalpina Annual Report 2009

17
Fair value through profit or loss investments
Consolidated and Annual Financial Statements 2009
in thousand CHF 2009 2008
Balance on 1 January 818 15,251
Translation differences (2) (5)
Additions 0 1,297
Disposals (234) (15,725)
Fair value adjustments recognized in profit or loss 36 0
Balance on 31 December 618 818
Less: non-current portion 618 818
Current portion 0 0
Group risk management
In the field of risk management, the Audit Committee approves the detailed and weighted risk map of the Executive Board. It adopts the
necessary measures for risk control and risk mitigation and reports the respective outcome to the Board of Directors on a yearly basis.
The risk map itself covers any strategic, financial, operational, legal and compliance risks that could significantly impact the company’s
ability to achieve its business goals and financial targets. Identified risks are weighted and prioritized by the Executive Board according
to their significance and likelihood of occurrence. For each risk, specific risk mitigation measures – including their current status – are defined
and responsibilities are allocated. The risk map, which is compiled by the Risk Review Committee, chaired by the Corporate Secretary,
for review by the Executive Board and the Audit Committee and subsequently approved by the Audit Committee, contains risks identified
and assessed by the respective corporate functions, selected country management, Corporate Audit and the group auditors. The
annual risk map also features risks which have increased or decreased in the course of the reporting year. Financial risk management
specifically is described in further detail below.
18
Financial risk management
The Group’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose
of these financial liabilities is to raise funds for the Group operations. The Group has trade and other receivables, loans, cash,
short- and long-term deposits that arise directly from its operations. The Group also holds available-for-sale investments and enters into
derivative transactions.
The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the management of these
risks. It is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework
for the Group. The financial risk committee provides assurance to the Group’s senior management that the Group’s financial risk-taking
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance
with Group policies and Group risk appetite. All derivative activities for risk management purposes are carried out by specialist
teams that have the appropriate skills, experience and supervision. It is the Group’s policy that no trading in derivatives for speculative
purposes shall be undertaken.
The Board of Directors reviews and agrees on policies for managing each of these risks, which are summarized below.
Panalpina Annual Report 2009
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120
Consolidated and Annual Financial Statements 2009
Financial risk factors
Carrying amount and fair value of financial assets by asset classes
in thousand CHF Cash
Panalpina Annual Report 2009
Availablefor-sale
Fair value
through
profit or
loss / held
for trading
Loans
and
receivables
Carrying
amount
Total
(fair value)
Trade receivables and other receivables 959,436 959,436 959,436
Unbilled forwarding services 83,103 83,103 83,103
Accrued interest income 524 524 524
Cash and cash equivalents 3,215 528,588 531,803 531,803
Other current financial assets 10,809 10,809 10,809
Derivative financial instruments 11,286 11,286 11,286
Investments:
Bonds and debentures 212 212 212
Shares 17,794 114 17,908 17,908
Other investments 292 292 292
Third-party loans 5,542 5,542 5,542
Rental and guarantee deposits 15,250 15,250 15,250
Total on 31 December 2009 3,215 17,794 11,904 1,603,252 1,636,165 1,636,165
in thousand CHF
Financial
liabilities at
fair value
through
profit or
loss
Financial
liabilities
measured
at amortized
cost
Carrying
amount
Total
(fair value)
Payables and accruals 802,131 802,131 802,131
Borrowings 11,226 11,226 11,226
Finance lease liabilities 1,660 1,660 1,875
Derivative financial instruments 2,233 2,233 2,233
Provisions and other liabilities 78,268 78,268 78,268
Total on 31 December 2009 2,233 893,285 895,518 895,733
in thousand CHF Cash
Availablefor-sale
Fair value
through
profit or
loss / held
for trading
Loans
and
receivables
Carrying
amount
Total
(fair value)
Trade receivables and other receivables 1,158,701 1,158,701 1,158,701
Unbilled forwarding services 116,198 116,198 116,198
Accrued interest income 982 982 982
Cash and cash equivalents 2,562 359,847 362,409 362,409
Derivative financial instruments 38,755 38,755 38,755
Investments:
Bonds and debentures 197 197 197
Shares 18,629 105 18,734 18,734
Other investments 516 516 516
Third-party loans 344 344 344
Rental and guarantee deposits 15,752 15,752 15,752
Total on 31 December 2008 2,562 18,629 39,573 1,651,824 1,712,588 1,712,588

in thousand CHF
Financial
liabilities at
fair value
through
profit or
loss
Consolidated and Annual Financial Statements 2009
Financial
liabilities
measured
at amortized
cost
Carrying
amount
Total
(fair value)
Payables and accruals 799,197 799,197 799,197
Borrowings 18,800 18,800 18,555
Finance lease liabilities 1,489 1,489 1,489
Derivative financial instruments 14,894 14,894 14,894
Provisions and other liabilities 66,736 66,736 66,736
Total on 31 December 2008 14,894 886,222 901,116 900,871
Fair value hierarchy
The table below analyzes financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(i.e., as prices) or indirectly (i.e., derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
2009 (in thousand CHF) Level 1 Level 2 Level 3 Total
Available-for-sale financial assets 252 1,068 15,963 17,283
Financial assets at fair value through profit or loss / held for trading 463 155 0 618
Derivative financial assets 0 11,286 0 11,286
Available-for-sale financial assets – at cost 511
Total 29,698
Derivative financial liabilities 0 2,233 0 2,233
Total financial liabilities 2,233
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is
regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service
or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. The quoted
market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined
by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as
little as possible on entity-specific estimates. If all significant inputs required to fair-value an instrument are observable, the instrument
is included in level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
The Group used the discounted cash flow method to determine the fair value of level 3 financial instruments.
Panalpina Annual Report 2009
121

122
Consolidated and Annual Financial Statements 2009
The following table presents the changes in level 3 instruments for the year ended 31 December 2009:
in thousand CHF
Panalpina Annual Report 2009
Available-for-sale
financial assets Total
Balance on 1 January 17,176 17,176
Fair value adjustments statement of comprehensive income (1,213) (1,213)
Balance on 31 December 15,963 15,963
Total gains or losses for the period included in statement of comprehensive income
for assets held at the end of the reporting period (1,213) (1,213)
In 2009, the group did not transfer any financial instruments into another level.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market price. Market
prices entail three types of risk: foreign currency risk, interest rate risk and other price risk such as equity risk.
The Group’s activities expose it primarily to financial risk due to changes in foreign currency exchange rates.
Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily in regard
to the US dollar and the Euro. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities as well as
net investments in foreign operations.
Management has set up a policy to require Group companies to manage their foreign exchange risk against their functional currency. The
Group companies are required to hedge their entire foreign exchange risk exposure with the Group Treasury, if possible. To manage foreign
exchange risks arising from future commercial transactions or recognized assets and liabilities, entities in the Group use forward contracts.
Foreign exchange risk arises when future commercial transactions or recognized assets and liabilities are denominated in a currency that
is not the Group entity’s functional currency. Group Treasury is responsible for managing the net position using external derivative contracts.
For segment reporting purposes, each subsidiary designates contracts with Group Treasury as fair value hedges. External foreign
exchange contracts are designated at Group level as hedges of foreign exchange risk on specific assets and liabilities on a gross basis.
At 31 December 2009, the Group’s net foreign currency risk exposure amounts to CHF 52.2 million. The following table demonstrates the
sensitivity to a reasonable possible change of 10 % in the USD, EUR and HKD exchange rate, with all other variables held constant, of the
Group’s profit before income tax (due to changes in the fair value of monetary assets and liabilities).
Profit before income tax
Effect in thousand CHF 2009 2008
US dollar 5,753 2,759
Euro 704 571
Hong Kong dollar (482) (398)
Total effect 5,975 2,932
The movement on the pre-tax effect is a result of change in the fair value of derivative financial instruments not designated in a hedging
relationship and monetary assets and liabilities denominated in USD, EUR and HKD, where the functional currency of the entity is a currency
other than USD, EUR or HKD. Although the derivatives have not been designated in a hedge relationship, they act as a commercial
hedge and will offset the underlying transactions should they occur. If the exchange rates of all currencies changed by 10 %, the total
maximum net effect would amount to CHF 5.2 million (2008: CHF 2.4 million).
Interest rate risk
The Group has a clear funding policy that prohibits affiliates from borrowing in foreign currency and has a clear preference for intragroup
financing. Affiliates are also required to repatriate their excess cash. Liquidity is mainly managed at corporate level by using money market
products. Derivative instruments are used to manage the duration of financial instruments in a prudent manner.
As the Group generally has no significant interest-bearing liabilities, and given their short-term nature, the Group has a limited exposure to
interest rate risk. Consequently the Group’s expense and operating cash flows are substantially independent of changes in market interest
rates.

Credit risk
Consolidated and Annual Financial Statements 2009
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The Group is exposed to credit risk from its operating activities (primarily for trade receivables) and from its financing activities,
including deposits with banks and other financial institutions, foreign exchange transactions and other financial instruments.
Credit risk related to trade receivables
Customer credit is managed by each business unit and subject to the Group’s established policy, procedures and control relating to customer
credit risk management. Credit limits are established for all customers based on external ratings, or, if not available, according
to internal rating criteria. The customer’s credit quality is assessed based on an extensive credit rating scorecard. Outstanding customer
receivables are regularly monitored. The objective of the management of trade receivables is to sustain the growth and profitability of
the Group by optimizing asset utilization while maintaining risks at an acceptable level. There is no significant concentration of counterparty
credit risk due to the Group’s large number of customers and their wide geographical spread. Risk limits and exposures are continuously
monitored by country and by the nature of counterparties. Additionally, the Group obtains credit insurance and similar enhancements when
appropriate to protect the collection of trade receivables. The maximum exposure is the carrying amount as disclosed in note 20 – Trade
receivables.
Credit risk related to financial instruments and cash deposit
Credit risk from balances with banks and financial institutions is managed by Group Treasury in accordance with the Group’s policy. Investments
of surplus funds are made only with approved counterparties and with credit limits assigned to each counterparty with a minimum
rating of A. Counterparty credit limits are reviewed by senior management on a regular basis. The limits are set to minimize the concentration
of risks and therefore mitigate financial loss through potential counterparty failure.
The table below shows the Group’s maximum exposure to credit risk:
in thousand CHF 2009 2008 1
Cash and cash equivalents (without cash in hand) 528,588 359,847
Derivative financial instruments 11,286 38,755
Receivables 985,327 1,228,188
Loans and other financial assets 20,792 16,096
Total financial assets shown in balance sheet subject to credit risk 1,545,993 1,642,886
Guarantees 144,509 135,589
Total credit risk 1,690,502 1,778,475
1 Certain prior-year fi gures have been reclassifi ed to conform with the current period’s presentation.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group’s approach to
managing liquidity is to ensure, to the extent possible, that it will always have sufficient liquidity to meet its liabilities when due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of overdrafts, bank loans,
de bentures, finance leases and hire purchase contracts. The Group’s liquidity is reported to the Management on a monthly basis.
To secure liquidity, the Group holds a net cash position of CHF 529.7 million (2008: CHF 342.1 million) and credit lines with various financial
institutions totaling CHF 530.9 million (2008: CHF 279.3 million). Of this total, CHF 224.8 million is allocated to bank guarantees and
foreign exchange lines.
Panalpina Annual Report 2009
123

124
Consolidated and Annual Financial Statements 2009
The table below summarizes the maturity profile of the Group’s financial liabilities on 31 December 2009 / 2008 based on contractual
un discounted payments.
2009 (in thousand CHF)
Panalpina Annual Report 2009
between
1 and 3 months
between
3 months
and 1 year
between
1 and 5 years
Total remaining
contractual
payments
Borrowings (note 25) 193 11,802 891 12,886
Trade and other payables 579,619 0 0 579,619
Accruals 159,712 62,800 0 222,512
Provisions and other liabilities
Foreign exchange contracts
0 78,268 0 78,268
Cash inflow 627,978 16,440 57,675 702,093
Cash outflow (623,461) (17,362) (51,470) (692,293)
Total 744,042 151,948 7,096 903,085
2008 (in thousand CHF)
between
1 and 3 months
between
3 months
and 1 year 1
between
1 and 5 years
Total remaining
contractual
payments
Borrowings (Note 25) 188 17,454 2,647 20,289
Trade and other payables 556,575 0 0 556,575
Accruals 168,617 87,317 0 255,934
Provisions and other liabilities
Foreign exchange contracts
0 66,736 0 66,736
Cash inflow 921,809 181,634 0 1,103,443
Cash outflow (900,297) (179,192) 0 (1,079,489)
Total 746,892 173,949 2,647 923,488
1 Certain prior-year fi gures have been reclassifi ed to conform with the current period’s presentation.
Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as an ongoing concern in order to provide returns
for shareholders and benefits for other stakeholders and to maintain an optimal capital structure in order to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debts.
Capital is monitored on the basis of the equity ratio, which is calculated as equity (including non-controlling interests) as a percentage of
total assets. This is reported to the management as part of the Group’s regular internal management reporting.
The Group’s capital and equity ratio is shown in the table below:
in thousand CHF 2009 2008
Capital and reserves attributable to Panalpina shareholders 856,564 863,716
Equity attributable to non-controlling interests 7,015 7,632
Total equity 863,579 871,348
Total assets 1,924,632 1,970,854
Equity ratio 44.9 % 44.2 %
The Group is not subject to regulatory capital adequacy requirements.

19
Other receivables and other current assets
Consolidated and Annual Financial Statements 2009
in thousand CHF 2009 2008
Office supplies 1,958 1,803
Taxes (VAT, withholding tax) 40,308 30,898
Accrued income 528 6,259
Accrued interest income 524 854
Personnel advances 4,687 2,429
Social security and payroll taxes 5,504 0
Prepaid rent expenses 6,943 2,563
Prepaid communication and IT expenses 4,084 0
Supplier rebates 12,034 18,308
Short-term loans 5,376 141
Others 28,476 20,746
Total other receivables and other current assets 110,422 84,001
20
Trade receivables
in thousand CHF 2009 2008
Commercial clients 872,556 1,082,448
Agents 19,164 28,968
Total trade receivables (gross values) 891,720 1,111,416
Individual allowance (5,104) (11,724)
Overall allowance (29,744) (22,067)
Total trade receivables (net) 856,872 1,077,625
Europe / Africa / Middle East / CIS 478,716 653,977
thereof European Union 365,974 487,996
thereof Switzerland 41,936 75,741
North America 159,681 186,445
Central and South America 85,048 88,317
Asia / Pacific 133,427 148,886
Total trade receivables (net) 856,872 1,077,625
There is no concentration of credit risk with regard to trade receivables as the Group has a large number of customers that are dispersed
internationally.
Provisions for impaired trade receivables are established based upon the difference between the receivable value and the estimated net
collectible amount. Panalpina establishes its provisions for doubtful trade receivables based on its historical loss experiences. Significant
financial difficulties of the debtor are individually impaired. The maximum exposure to credit risk on the reporting date is the carrying
amount of net trade receivables mentioned above. Based on past experience, the Group does not anticipate writing off not-past-due nor
unprovided trade receivables. The creation and usage of provisions for impaired trade receivables have been included in other operating
expenses in the income statement.
The following table summarizes the movement in the provision for impairment of trade receivables:
in thousand CHF 2009 2008
Balance as of 1 January 33,791 30,515
Receivables written off during the year as uncollectible (8,875) (6,541)
Changes in provision for doubtful accounts 9,932 9,817
Balance as of 31 December 34,848 33,791
Panalpina Annual Report 2009
125

126
Consolidated and Annual Financial Statements 2009
The following table provides details about the age of trade receivables that are not overdue as the payment terms specified in the terms
and conditions established with Panalpina customers have not been exceeded, as well as an analysis of overdue amounts and related
provisions for doubtful trade receivables:
in thousand CHF 2009 2008
Commercial clients 872,556 1,082,448
Agents 19,164 28,968
Total trade receivables (gross values) 891,720 1,111,416
Allowance for bad debt (34,848) (33,791)
Total trade receivables (net) 856,872 1,077,625
of which:
Not overdue 624,809 726,398
Past due not more than 30 days 171,315 248,938
Past due more than 30 days up to 180 days 79,236 118,261
Past due more than 180 days up to 360 days 8,370 20,169
Past due more than 360 days 19,110 17,227
Prepayment (11,120) (19,577)
Total trade receivables (gross) 891,720 1,111,416
Allowance for bad debt (34,848) (33,791)
Total trade receivables (net) 856,872 1,077,625
21
Derivative financial instruments
Panalpina Annual Report 2009
Contract value
Positive
replacement value
Negative
replacement value
in thousand CHF 2009 2008 2009 2008 2009 2008
Forward foreign exchange contracts 692,239 1,071,999 11,286 38,755 (2,233) (14,894)
Forward trading hedges 692,239 1,071,999 11,286 38,755 (2,233) (14,894)
Contract value
Positive
replacement value
Negative
replacement value
in thousand CHF 2009 2008 2009 2008 2009 2008
Terms of the forward foreign
exchange contracts 692,239 1,071,999 11,286 38,755 (2,233) (14,894)
0 – 3 months 623,408 891,375 5,681 34,811 (1,409) (12,722)
4 – 12 months 17,361 180,624 44 3,944 (824) (2,172)
13 – 18 months 51,470 0 5,561 0 0 0

Derivative financial instruments are spread over the following currencies:
Consolidated and Annual Financial Statements 2009
Forward foreign
exchange contracts
in thousand CHF 2009 2008
USD 271,313 526,636
EUR 263,523 403,363
SEK 45,651 31,847
CAD 29,375 10,529
HKD 21,762 3,598
COP 17,105 9,356
GBP 15,167 16,504
JPY 7,029 13,477
NZD 6,734 14,394
PEN 6,242 4,843
SGD 2,572 10,701
CHF 1,600 1,507
DKK 1,097 200
MYR 1,028 0
CZK 954 1,123
AUD 194 12,336
MXN 0 3,956
Other 893 7,629
Total 692,239 1,071,999
22
Cash and cash equivalents
in thousand CHF 2009 2008
Cash on hand 3,215 2,562
Cash at bank 536,788 368,479
Checks and bills of exchange / in transit (8,200) (8,632)
Total cash and cash equivalents 531,803 362,409
Net cash (debt) is comprised as follows:
in thousand CHF 2009 2008
Cash and cash equivalents 531,803 362,409
Other current financial assets 10,809 0
Short-term borrowings (11,995) (17,642)
Long-term borrowings (891) (2,647)
Net cash (debt) 529,726 342,120
Panalpina Annual Report 2009
127

Consolidated and Annual Financial Statements 2009
128 23 Share capital and treasury shares
in thousand CHF
Panalpina Annual Report 2009
Outstanding
number of shares
(numbers)
Ordinary
shares
Treasury
shares Total
On 1 January 2009 23,635,185 50,000 (197,753) (147,753)
Treasury shares
Purchased (58,980) 0 (5,242) (5,242)
Sold under employee share plan 91,272 0 10,428 10,428
On 31 December 2009 23,667,477 50,000 (192,567) (142,567)
The share capital is presented by 25 million issued shares (2008: 25 million) of CHF 2.00 par value, fully paid-in.
On 31 December 2009, the number of outstanding shares amounted to 23,667,477 shares (2008: 23,635,185) and the number of
treas ury shares to 1,332,523 (2008: 1,364,815). Treasury shares have been deducted from equity attributable to owners of the parent.
All shares issued by the Company were fully paid-in.
The extraordinary Shareholders’ Meeting, held on 23 August 2005, authorized the Board of Directors to create authorized capital in the
maximum amount of CHF 6 million by issuing a maximum of 3,000,000 registered shares with a nominal value of CHF 2.00 each at any
time until 22 August 2007. At the Annual General Meeting held on 15 May 2007, the shareholders approved the proposal of the Board of
Directors to extend the authorized share capital until May 2009 with an unchanged amount. The extension of the authorized capital for
another two years was approved at the Annual General Meeting held on 5 May 2009. The Board of Directors has not made use of this authorization.
The Company has no conditional share capital.
In 2007, the Board of Directors decided to return excess capital to the shareholders by launching a share buyback program via a second
trading line on the SIX Swiss Exchange. Between 13 August 2007 and 2 September 2008 the Group repurchased 1,250,000 registered
shares totaling a value of CHF 185.0 million and representing 5 % of share capital.
The amount available for dividend distribution is based on the available distributable retained earnings of Panalpina World Transport (Holding)
Ltd. determined in accordance with the legal provisions of the Swiss Code of Obligations. On 5 May 2009, the shareholders approved the
distribution of a dividend of CHF 1.90 per share in respect of the 2008 business year (2008: CHF 3.20). The distribution to holders of outstanding
shares totalled to CHF 45 million (2008: CHF 77 million) and had been recorded against retained earnings. Except for 1,371,113
treasury shares (2008: 905,370 treasury shares), all shares were dividend-bearing. The Board of Directors has proposed that no dividends
should be distributed for the fiscal year 2009. This proposal is subject to approval at the Annual Meeting on 4 May 2010.
24
Non-controlling interests
in thousand CHF 2009 2008
Balance on 1 January (net) 7,632 6,638
Increase of parent’s ownership interest (2,194) 786
Translation differences (84) (157)
Reclassification of translation differences to parent shareholders’ equity 0 (682)
Interest in profit 1,951 (1,964)
Reclassification interest in profit to parent shareholders’ equity 0 3,011
Dividend paid (290) 0
Total net non-controlling interests 7,015 7,632
During the year under review, Panalpina took over the 30 % shares from non-controlling interests of Panalpina Thailand. In 2008, the
man agement decided to reclassify the negative balance of non-controlling interests of Panalpina Nigeria to parent shareholders’ equity.

25
Borrowings
Consolidated and Annual Financial Statements 2009
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings, which are measured at
amortized cost. For more information about the Group’s exposure to foreign currency and liquidity risk, see note 18.
in thousand CHF 2009 2008
Current liabilities
Overdraft 39 5,208
Current portion of secured bank loans 11,183 11,681
Current portion of finance lease liabilities 773 753
Total current liabilities 11,995 17,642
Non-current liabilities
Secured bank loans 0 1,907
Non-current portion of finance lease liabilities 887 736
Other loans 4 4
Total non-current liabilities 891 2,647
Terms and repayment schedule
in thousand CHF Currency
Nominal
interest rate
Year of
maturity
2009 2008
Carrying
amount Fair value
Carrying
amount Fair value
Current liabilities
Secured bank loan ARS 28.00 % 2009 0 0 1,316 1,316
Secured bank loan COP DTF + 3.00 % 2009 0 0 2,554 2,554
Secured bank loan COP Libor + 6.50 % 2009 0 0 1,057 1,057
Secured bank loan COP 15.70 % – 16.75 % 2009 0 0 6,754 6,754
Secured bank loan USD 5.85 % 2010 10,809 10,809 0 0
Secured bank loan COP DTF + 3.00 % 2010 374 374 0 0
Total current liabilities 11,183 11,183 11,681 11,681
Non-current liabilities
Secured bank loan NOK 9.70 % 2010 0 0 5 5
Secured bank loan USD Libor + 0.50 % 2009 0 0 1,902 1,657
Total secured bank loans 0 0 1,907 1,662
Other loans SGD n / a 2011 4 4 4 4
Total interest-bearing liabilities 11,187 11,187 13,592 13,347
Panalpina Annual Report 2009
129

130
Consolidated and Annual Financial Statements 2009
Finance lease liabilities
in thousand CHF
Panalpina Annual Report 2009
Future
minimum
lease
payments
2009 2008
Interest
Present
value
of minimum
lease
payments
Future
minimum
lease
payments
Interest
Present
value
of minimum
lease
payments
Less than one year 874 101 773 848 95 753
Between one and five years 1,001 114 887 835 99 736
Total interest-bearing liabilities 1,875 215 1,660 1,683 194 1,489
The weighted average interest rate of bank borrowings and other financing liabilities is 5.00 % (2008: 9.08 %). The carrying amounts
of short-term bank borrowings approximate their fair value.
The maturity of the Group’s long-term financial debts (excluding lease liabilities) is shown in the following table:
2009 2008
in thousand CHF
2010 0 1,911
2011 4 0
Total 4 1,911
The carrying amounts of the Group’s borrowings are denominated in the following currencies:
in thousand CHF 2009 2008
USD 10,809 0
GBP 1,347 1,251
COP 373 13,075
EUR 162 538
PLN 133 0
AUD 58 0
XAF 0 2,479
ARS 0 1,316
DZD 0 1,055
VEF 0 371
MYR 0 131
Others 4 73
Total 12,886 20,289

26
Long-term provisions
2009 (in thousand CHF)
Consolidated and Annual Financial Statements 2009
Employee
provision
Claims
and other
provisions Total provisions
Balance on 1 January 26,784 48,986 75,770
Translation differences (4) (806) (810)
Addition 6,692 4,869 11,561
Reversal of unused amount (339) (3,618) (3,957)
Charged in income statement 6,353 1,251 7,604
Utilization (4,377) (11,529) (15,906)
Balance on 31 December 28,756 37,902 66,658
2008 (in thousand CHF)
Employee
provision
Claims
and other
provisions Total provisions
Balance on 1 January 37,440 34,678 72,118
Translation differences (4,503) (3,128) (7,631)
Addition 3,624 21,345 24,969
Reversal of unused amount (2,089) (1,085) (3,174)
Charged in income statement 1,535 20,260 21,795
Utilization (8,792) (2,824) (11,616)
Transfers 1,104 0 1,104
Balance on 31 December 26,784 48,986 75,770
Employee provision mostly relate to certain employee benefit obligations, such as “anniversary” benefits, termination payments and longservice
benefits mainly in Switzerland, Germany, Austria, Italy, France and USA. The timings of these cash outflows can be reasonably
estimated based on past performance. In addition employee provision includes the liability of CHF 1,443 thousand for the cash settled
compensation plan. Significant provisions are discounted by using the corresponding discount rate applicable in respective countries
were the obligation occurs.
The balance for claims represents a provision for certain claims brought forward against the Group by customers and forwarding agents.
The balance as of 31 December is expected to be utilized within the next two to five years. Long-term claims include an additional
provision for probable potential future payments in connection with transport damages. The management determined the provision based
on past performance and its expectation of the funds needed for the future settlement of the claims which are not yet reported (see also
note 4 Critical accounting estimates and judgements).
The current portion of employee provision and claim provision are disclosed in note 28.
Panalpina Annual Report 2009
131

Consolidated and Annual Financial Statements 2009
132 27
Deferred income taxes
Deferred taxes are related to the following balance sheet items:
in thousand CHF
Deferred tax assets
Panalpina Annual Report 2009
Balance
1 January
2008
Recognized
translation
differences
Recognized
in income
statement
Recognized
in equity
Balance
31 December
2008
Recognized
translation
differences
Recognized
in income
statement
Recognized
in equity
Balance
31 December
2009
Receivables 6,603 (573) (1,569) 0 4,461 186 (1,719) 0 2,928
Fixed assets 3,995 (349) (1,697) 0 1,949 81 2,030 0 4,060
Provisions 12,377 (1,074) (2,567) 0 8,736 365 5,545 1,064 15,710
Other balance sheet
captions
Deductible loss
7,335 (624) 3,523 0 10,234 428 (1,899) 0 8,763
carry-forwards 4,634 (392) 2,992 0 7,234 304 16,340 0 23,878
Total deferred tax assets 34,944 (3,012) 682 0 32,614 1,364 20,297 1,064 55,339
Deferred tax liabilities
Receivables (960) 49 131 0 (780) (42) 182 0 (640)
Fixed assets (15,790) 910 4,403 0 (10,477) (565) 1,871 0 (9,171)
Provisions
Other balance sheet
(7,562) 110 2,102 7,387 2,037 110 (5,336) (5,402) (8,591)
captions
Deductible loss
(10,634) 332 (2,746) 0 (13,048) (703) 8,950 0 (4,801)
carry-forwards 0 132 2,691 0 2,823 153 (1,688) 0 1,288
Total deferred tax liabilities (34,946) 1,533 6,581 7,387 (19,445) (1,047) 3,979 (5,402) (21,915)
Net deferred tax assets
(liabilities) (2) (1,479) 7,263 7,387 13,169 317 24,276 (4,338) 33,424
The gross movement on the deferred income tax account is as follows:
in thousand CHF 2009 2008
Balance 1 January 13,169 (2)
Translation differences 317 (1,479)
Income statement charge 24,276 7,263
Tax charged to equity due to IAS 19 (4,338) 7,387
Balance 31 December 33,424 13,169
In 2009, the amount of CHF 8,705 (2008: CHF 121,952) was not capitalized because it was not probable that it can be set off against
future profits.
Year of expiry of unrecognized tax loss carry-forwards (in thousand CHF) 2009 2008
2009 0 6,297
2010 623 83
2011 2,190 8,030
2012 17,781 990
2013 595 2,183
2014 11,127 0
Later 22,715 12,081
Total unrecognized tax loss carry-forwards 55,031 29,664
The total increase of CHF 25.4 million (2008: decrease of CHF 7.8 million) derived mainly from unrecognized tax loss carry-forwards in
Angola, Australia, Ireland and Russia. During the period under review tax loss carry-forward expired mainly in Turkey. Tax loss carryforwards
of CHF 31.1 million (2008: CHF 3.3 million) have been utilized mainly in Switzerland, the Netherlands, Brazil, Argentina, Chile
and Sweden.

28
Provisions and other liabilities
2009 (in thousand CHF)
Employee
benefits and
others
Consolidated and Annual Financial Statements 2009
Outstanding
vacation
entitlement Claims
Restructuring
Total
Balance on 1 January 31,172 24,941 35,564 0 91,677
Translation differences 1 736 (26) 0 711
Addition 79,021 25,252 12,062 10,645 126,980
Reversal of unused amounts (10,293) (11,926) (4,840) (2,753) (29,812)
Charged in income statement 68,728 13,326 7,222 7,892 97,168
Utilization (54,616) (17,926) (9,777) (3,866) (86,185)
Balance on 31 December 45,285 21,077 32,983 4,026 103,371
2008 (in thousand CHF)
Employee
benefits and
others
Outstanding
vacation
entitlement Claims Total
Balance on 1 January 37,981 28,662 23,946 90,589
Translation differences (2,062) (3,387) (214) (5,663)
Addition 41,919 23,366 12,386 77,671
Reversal of unused amounts (6,341) (5,245) (101) (11,687)
Charged in income statement 35,578 18,121 12,285 65,984
Utilization (40,325) (18,455) (453) (59,233)
Balance on 31 December 31,172 24,941 35,564 91,677
Apart from outstanding vacation entitlement and the current portions of provisions as disclosed in note 26, provisions and other liabilities
include personnel profit participation, social security and payroll taxes. As disclosed in note 3 and 26 claim provision includes the current
portion of certain claims brought forward against the Group by customers and forwarding agents. The balance as of 31 December is
expected to be utilized within one year.
Restructuring provisions arise from planned programs that materially change the scope of business undertaken by the Group or the manner
in which business is conducted. Such provisions include only the costs necessarily entailed by the restructuring which are not associated
with the recurring activities of the Group. The restructuring provisions newly added in 2009 concern headcount reductions in all functions
mainly in operation and marketing and sales in various countries with the largest amount incurred in Germany, Venezuela, Luxembourg,
Spain, Italy, France, Austria and Switzerland. Costs recognized in 2009 by segments are as follows: Europe / Africa / Middle East /
CIS CHF 7.8 million; North America CHF 0.2 million; Central and South America CHF 1.9 million and Asia / Pacific CHF 0.6 million. The
timings of these cash outflows are expected to occur within one year.
29
Related parties
Key management personnel compensation
Key management personnel consists of the Board of Directors and the Executive Board. The members of the Board of Directors receive
a fixed annual compensation and participate in certain equity compensation plans (see note 8). In 2009, there were 7 (2008: 7) members
of the Board of Directors.
The compensation of the Executive Board consists of a fixed portion and a variable portion, which depends on the course of business
and the individual manager’s performance. In addition, members of the Executive Board receive indirect benefits and are able to participate
in certain equity compensation plans (see note 8). In 2009, there were 7 (2008: 10) members of the Executive Board.
Panalpina Annual Report 2009
133

134
Consolidated and Annual Financial Statements 2009
The following table shows the compensation of key management personnel:
2009 (in thousand CHF)
Board of Directors
Panalpina Annual Report 2009
Annual
salary 1 Bonus
Termination
benefits
Other
benefits 2
Share-
based
payment
Social
security
contribution
Total
compensation
2009
Rudolf W. Hug, Chairman 454 50 50 554
Wilfried Rutz, Vice Chairman 256 50 28 334
Günther Casjens, Member 155 50 205
Yuichi Ishimaru, Member 154 50 18 222
Glen R. Pringle, Member 102 50 13 165
Roger Schmid, Member * 155 50 205
Guenter Rohrmann, Member 103 50 11 164
Options
granted
Total remuneration of Board of Directors 1,379 0 0 0 350 120 1,849 0
Executive Board
Monika Ribar, Chief Executive Officer 800 0 27 109 936
Members of the Executive Board 3,120 794 298 281 504 4,997
Executive Management leaving 575 13 42 630
Total remuneration of Executive Board 4,495 794 0 338 281 655 6,563 0
Total remuneration of key management
personnel 5,874 794 0 338 631 775 8,412 0
2008 (in thousand CHF)
Annual
salary 1 Bonus
Termination
benefits
Other
benefits 2
Value of
options
on grant
date
Social
security
contribution
Total
compensation
2008
Options
granted
Board of Directors
Rudolf W. Hug, Chairman 520 79 50 649 2,020
Wilfried Rutz, Vice Chairman 322 79 29 430 2,020
Günther Casjens, Member 204 59 263 1,500
Yuichi Ishimaru, Member 220 79 21 320 2,020
Glen R. Pringle, Member 135 41 14 190 990
Roger Schmid, Member * 155 155
Guenter Rohrmann, Member 169 79 12 260 2,020
Total remuneration of Board of Directors 1,725 0 0 0 416 126 2,267 10,570
Executive Board
Monika Ribar, Chief Executive Officer 867 560 27 79 121 1,654 2,020
Members of the Executive Board 2,797 999 126 278 192 4,392 8,548
Executive Management leaving 297 2,835 85 356 3,573
Total remuneration of Executive Board 3,961 1,559 2,835 238 357 669 9,619 10,568
Total remuneration of
key management personnel 5,686 1,559 2,835 238 773 795 11,886 21,138
1 Annual salary incl. fi xed remuneration respectively salary and discount on shares granted (share discount only 2008)
2 Other benefi ts incl. expense allowance and fringe benefi ts
* Remuneration respectively shares have been transferred to Ernst Göhner Stiftung (employer of respective board member)
There were no contributions or donations to close members of the families of the key management.

Consolidated and Annual Financial Statements 2009
The following table shows the equity holdings in Panalpina World Transport (Holding) Ltd. of key management personnel and their related
parties in line with article 663b bis and 663c of the Swiss Code of Obligations.
Number of PWT
nominal shares
Number of options
(end of vesting period)
2012 2013 2014
Board of Directors
Rudolf W. Hug, Chairman 7,935 1,200 1,325 2,020
Wilfried Rutz, Vice Chairman 12,795 1,800 1,325 2,020
Günther Casjens, Member 13,175 1,200 1,325 1,500
Yuichi Ishimaru, Member 15,542 1,800 1,325 2,020
Glen R. Pringle, Member 4,040 1,800 995 990
Roger Schmid, Member 9,375 1,800 1,325 0
Guenter Rohrmann, Member 2,820 0 0 2,020
Total on 31 December 2009 65,682 9,600 7,620 10,570
Executive Board
Monika Ribar, Chief Executive Officer 17,479 1,800 1,325 2,020
Christoph Hess, General Counsel and Corporate Secretary
Sandro Knecht, Chief Marketing and Sales and
4,218 600 600 1,000
Supply Chain Management Officer 6,538 670 497 1,000
Dominik Tichelkamp, Chief Product and Procurement Officer 2,255 446 373 900
Karl Weyeneth, Chief Operating Officer 2,479 0 497 303
Marco Gadola, Chief Financial Officer 8,318 1,800 1,325 2,020
Alastair Robertson, Chief Human Resources 1,400 0 0 200
Total on 31 December 2009 42,687 5,316 4,617 7,443
Total on 31 December 2009 108,369 14,916 12,237 18,013
Number of PWT
nominal shares
Number of options
(end of vesting period)
2012 2013 2014
Board of Directors
Rudolf W. Hug, Chairman 7,135 1,200 1,325 2,020
Wilfried Rutz, Vice Chairman 11,995 1,800 1,325 2,020
Günther Casjens, Member 12,375 1,200 1,325 1,500
Yuichi Ishimaru, Member 14,742 1,800 1,325 2,020
Glen R. Pringle, Member 5,040 1,800 995 990
Roger Schmid, Member 9,375 1,800 1,325 0
Guenter Rohrmann, Member 2,020 0 0 2,020
Total on 31 December 2008 62,682 9,600 7,620 10,570
Executive Board
Monika Ribar, Chief Executive Officer 13,895 1,800 1,325 2,020
Christoph Hess, General Counsel and Corporate Secretary
Sandro Knecht, Chief Marketing and Sales and
2,850 600 600 1,000
Supply Chain Management Officer 5,167 670 497 1,000
Dominik Tichelkamp, Chief Product and Procurement Officer 1,273 446 373 900
Karl Weyeneth, Chief Operating Officer 800 0 497 303
Marco Gadola, Chief Financial Officer 8,318 1,800 1,325 2,020
Alastair Robertson, Chief Human Resources 200 0 0 200
Total on 31 December 2008 32,503 5,316 4,617 7,443
Total on 31 December 2008 95,185 14,916 12,237 18,013
Shareholders, pension funds, associated companies and all subsidiaries are defined as parties related to the Group. Apart from the transactions
with related parties mentioned above, we refer to note 7 and 8.
Panalpina Annual Report 2009
135

Consolidated and Annual Financial Statements 2009
136 30 Business combinations / disinvestments
In 2009 and 2008, there were no business combinations, nor were any significant subsidiaries sold.
Acquisition of non-controlling interests
In June 2009, the Group acquired an additional 30-percent interest in Panalpina World Transport (Thailand) Ltd. for CHF 268 thousand in
cash, increasing its ownership from 70 to 100 percent. The carrying amount of Panalpina Thailand’s net assets in the consolidated financial
statement on the date of the acquisition was CHF 8,467 thousand. The Group recognized a decrease in non-controlling interest of
CHF 2,194 thousand and an increase in retained earnings of CHF 1,926 thousand.
The following table summarizes the effect of changes in the Group’s (parent) ownership interest in Panalpina World Transport (Thailand) Ltd.:
in thousand CHF 2009
Parent’s ownership interest at beginning of period 4,790
Effect of increase in parent’s ownership interest (Note 24) 2,194
Share of comprehensive income 2,397
Parent’s ownership interest at end of period 9,381
31
Additional information
Contractual commitments on non-cancellable operating lease contracts 2009 2008
in thousand CHF
Less than one year 123,585 121,083
Between one and five years 217,174 241,670
More than five years 105,392 132,240
Total residual commitments 446,151 494,993
Included in the residual lease commitments is an operating lease contract for an aircraft of CHF 30.2 million (2008: CHF 22.6 million),
leased by Panalpina Air & Ocean Ltd. The contract with a one-year notice period expired in August 2009 and was renewed for two years
effective 1 January 2010.
Pledged assets
On the balance sheet date 2009 and 2008, the Group does not have any pledged assets.
Pending legal claims
Introduction
In addition to the matters discussed in note 4 – Provision, from time to time the Group is involved in legal proceedings in the ordinary course
of its business. Other than as noted below, the Group is not a party to any legal, administrative or arbitration proceedings which could
significantly harm the Group’s business, financial condition and results of operations taken as a whole, and it does not know of any such
proceedings which may currently be contemplated by governmental or third parties.
Claims against Pantainer Ltd.
During the reporting year, Pantainer Ltd. has amicably settled by process of mediation the lawsuit reported in previous annual reports concerning
a liability claim of approximately USD 30 million in connection with an incident involving significant damage related to a fire on
a container vessel. The claim amount includes USD 19.1 million in regard to the loss of the vessel, loss of cargo and containers, general
average contributions and other costs, fees and expenses. Pantainer has agreed with claimants not to disclose the terms of settlement.
In a second case it is also alleged that a fire occurred on a container vessel due to containers shipped under Pantainer bills of lading containing
chemicals that were not declared as hazardous cargo. As a consequence the vessel has declared general average. The operation
of the vessel was deliberately stopped for safety reasons, the fire was extinguished and the operation of the vessel continued. Claimants
may seek compensation of general average contributions, damage / loss of cargo and potential damages to the vessel. Formal legal proceedings
have been launched in Tokyo against the shipper which in turn has commenced third-party proceedings against Pantainer Ltd.
and other companies of the group. Neither Pantainer nor any other Panalpina group companies are named defendants in the Tokyo litigation
which was initiated in 2005. The value in dispute amounts to approximately CHF 8.5 million.
Panalpina Annual Report 2009

Consolidated and Annual Financial Statements 2009
Business practices investigation
In January 2007, Panalpina Inc. was served a “subpoena” by the U.S. Department of Justice (DOJ). The subpoena required Panalpina, Inc.
to produce all documents related to the provision of its services for two specific customers. The subpoena resulted from an investigation
and a subsequent plea agreement with one such customer and the DOJ for potential violations of the U.S. Foreign Corrupt Practices Act
(FCPA) by allegedly making improper payments through Panalpina as its customs agent to Nigerian officials to secure preferential customs
treatment. In March 2007, a supplemental subpoena was issued to demand information on Panalpina services for its customers in Nigeria,
Kazakhstan and Saudi Arabia. In May 2007, the DOJ issued a letter listing specific customer files of Panalpina Inc. to be produced to the
DOJ. As a consequence, Panalpina’s board of directors retained the services of an external counsel and a forensic accounting expert company
to conduct an independent and comprehensive internal investigation.
During 2007, Panalpina reviewed its range of services and practices in problematic countries. During the same year, Panalpina established
a worldwide compliance organization and has rolled out an enhanced Code of Business Conduct together with dedicated training programs
on all staff levels, as a result of its cooperation with the renowned Basel Institute on Governance and in order to globally improve
compliance of Panalpina companies with the FCPA and other applicable anti corruption laws. Furthermore, as part of its compliance
remediation efforts, Panalpina closed its operations in Nigeria in September 2008.
Panalpina has fully cooperated with the DOJ and the Securities and Exchange Commission (SEC) in the conduct of its internal investigation
into possible improper conduct in certain of its operations in selected countries. The investigation has been substantially completed,
and in December 2009, Panalpina commenced settlement discussions with the DOJ and the SEC. It is expected that this process will take
sev eral months until finalization.
Based on the information obtained in the investigation to date, potential corrupt conduct may have occurred. As a result, legal proceedings
may be brought against the company, its affiliates and / or certain of its employees in connection with potential violations of law including
the FCPA. The company’s operating activities and financial results may also be negatively affected, particularly due to potential
fines, claims or the loss of business. As of 31 December 2009, no provisions have been made, as management does not have sufficient
information to reliably estimate the related financial impact. The company will have to bear legal and accounting fees until settlement
as well as the costs of continuing compliance remediation efforts.
Individual shareholder compensation complaint
In July 2009, Panalpina was named as co-defendant in a civil action filed in the US District Court for the Southern District of Texas,
Laredo Division, in which plaintiffs pertaining to the same group of a former minority shareholder are seeking compensation for not yet
substantiated damages, alleging misrepresentations and the omission of material facts related to Panalpina’s business in Nigeria
and the termination thereof. Panalpina is contesting jurisdiction and assertions made by plaintiffs. In view of this, Panalpina is not in
a position to assess its exposure and potential financial consequences, if any. Consequently no provision has been made.
Freight forwarding antitrust investigation
In October 2007, Panalpina’s headquarters in Switzerland and the USA were raided by the respective competition authorities. Further,
a request for information was served by the New Zealand Commerce Division and a document retention notice by the Competition Bureau
Canada. In April 2008, the Australian Competition and Consumer Commission served a notice on the Australian subsidiary requesting
information and documents and in June 2008, Panalpina’s UK subsidiary was the recipient of a request for information issued by the European
Commission requesting certain information and records relating to alleged anti-trust violations in the freight forwarding industry.
These activities were part of a coordinated investigation of several competition authorities against various major freight forwarding companies
for alleged anti competitive behavior.
Furthermore, a civil class action lawsuit was filed in the USA against Panalpina and a number of its major competitors as a direct consequence
of these investigations alleging a conspiracy in the pricing of freight forwarding services. In July 2009, plaintiffs filed an amended
complaint adding additional defendants and claims. In November 2009, the Company, along with other defendants, filed motions to dismiss
the amended complaint for failure to state a claim and for lack of subject matter jurisdiction. Oppositions to the motions were filed in
January 2010. At this stage, Panalpina is unable to express an opinion as to the probable outcome of this litigation and thus to estimate
the potential loss, if any.
In October 2009, the Competition Bureau Canada closed its investigation into alleged anti-competitive activity due to a lack of evidence
substantiating an undue lessening of competition.
In January 2010, also the Australian Competition and Consumer Commission discontinued its investigation.
In February 2010, Panalpina was served with a Statement of Objections by the European Commission, alleging anticompetitive behavior in
the freight forwarding industry. The Statement of Objections enables the addressees to respond to the Commission’s preliminary findings
and does not prejudge the final decision of the European Commission.
Internal fact finding and Panalpina’s cooperation with the competition authorities in jurisdictions which are still investigated is ongoing. It is
not possible to predict the outcome of these proceedings at this stage. They may, however, result in material penalties being imposed
on Panalpina. Panalpina is not yet in a position to assess its exposure and the potential financial consequences and therefore no related
provisions have been made as of 31 December 2009.
Subsequent events
Since the balance sheet date, no events have become known for which a disclosure is required.
Panalpina Annual Report 2009
137

Consolidated and Annual Financial Statements 2009
138 32
Principal Group companies and participations
Company
Panalpina Annual Report 2009
Registered
Currency
Nominal
capital
in 1,000
Equity
interest
in %
Investment
Method
of consolidation
Europe
Panalpina World Transport (Holding) Ltd. Basel CHF 50,000 K
Panalpina Management Ltd. Basel CHF 2,500 100 1 K
Panalpina Ltd. Basel CHF 600 100 1 K
Pantainer Ltd. Basel CHF 100 100 1 K
Panalpina Insurance Broker Ltd. Basel CHF 100 100 1 K
Hausmann Transport Ltd. Reinach CHF 100 100 1 K
Panalpina Air & Ocean Ltd. Basel CHF 2,700 100 1 K
Jacky Maeder international forwarding Ltd. Basel CHF 2,000 100 1 K
Panalpina Global Employment Services Ltd. Basel CHF 100 100 1 K
Panalpina Welttransport (Deutschland) GmbH Mörfelden EUR 10,226 100 1 K
Panalpina Welttransport GmbH Vienna EUR 36 100 1 K
Panalpina Welttransport GmbH Höchst EUR 36 100 1 K
Panalpina France Transports Internationaux S.A.S. Paris-Roissy EUR 2,000 100 1 K
Panalpina Trasporti Mondiali S.p.A. Milan EUR 2,000 100 1 K
Panalpina Transportes Mundiales S.A. Madrid EUR 451 100 1 K
Panalpina Transportes Mundiais Lda Lisbon EUR 50 100 1 K
Panalpina World Transport Ltd. London GBP 500 100 1 K
Panalpina World Transport (Ireland) Ltd. Dublin EUR 25 100 1 K
Panalpina World Transport N.V. Antwerp EUR 7,500 100 1 K
Panalpina Luxembourg S.A. Luxembourg EUR 31 100 1 K
Panalpina World Transport B.V. Amsterdam EUR 91 100 1 K
Grampian International Freight B.V. Beverwijk EUR 18 100 1 K
Panalpina Czech Sro. Prague CZK 1,000 100 1 K
Panalpina Spedicija d.o.o. Koper EUR 100 100 1 K
Panalpina Croatia d.o.o. Rijeka HRK 400 100 1 K
Panalpina Slovakia S.R.O. Bratislava SKK 700 100 1 K
Panalpina Magyarorszag Kft. Budapest HUF 3,000 100 1 K
Panalpina Romania S.R.L. Oradea ROL 72 100 1 K
Panalpina Polska Sp. z. oo. Wroclaw PLN 1,500 100 1 K
Panalpina AB Gothenburg SEK 1,000 100 1 K
Panalpina Overseas Shipping A / S Oslo NOK 1,000 100 1 K
Panalpina World Transport Nakliyat Ltd. Srk. Istanbul YTL 300 100 1 K
Panalpina World Transport ZAO Moscow RUB 2,100 100 1 K
Panalpina CIS Helsinki OY Vantaa EUR 8 100 1 K
Panalpina Logistics LLC Moscow RUB 240 100 1 K
Panalpina World Transport Ltd. Kiev UAH 1,111 100 1 K
Luxair S.A. Luxembourg EUR 13,744 12 3 N

Company
Registered
Currency
Consolidated and Annual Financial Statements 2009
Nominal
capital
in 1,000
Equity
interest
in %
Investment
Method
of consolidation
North, Central and South America
Panalpina Inc. Jersey USD 4,000 100 1 K
Panalpina FMS, Inc. (Washington) Jersey City USD 1 100 1 K
Hensel, Bruckmann & Lorbacher, Inc. Farmingdale N.Y. USD 50 100 1 K
International Claims Handling Services Inc. Miami USD 1 100 1 K
Panalpina Inc. Toronto CAD 100 100 1 K
Panalpina Transportes Mundiales, S.A. de C.V. Mexico City MXN 35,834 100 1 K
Panalpina S.A. Panama City USD 1,250 100 1 K
Almacenadora Mercantil S.A. Panama City USD 25 100 1 K
Panalpina S.A. de C.V. San Salvador SVC 100 100 1 K
Panalpina Transportes Mundiales S.A. San José CRC 2,500 100 1 K
Las Fronteras S.A. San José CRC 1,590 100 1 K
Panalpina Uruguay Transportes Mundiales S.A. Montevideo
Santa Fé de
UYU 3,526 100 1 K
Panalpina S.A.
Bogotá
Santa Fé de
COP 7,450,838 100 1 K
DAPSA Depositos Aduaneros Panalpina S.A.
Bogotá COP 2,815,208 100 1 K
Panalpina C.A. Caracas VEF 7,299,297 100 1 K
Panalpina Ecuador S.A. Quito USD 1 100 1 K
Panalpina Aduanas S.A. Lima PEN 732 100 1 K
Panalpina Transportes Mundiales S.A. Lima PEN 4,008 100 1 K
Panalpina Ltda São Paulo BRL 51,050 100 1 K
Panalpina Chile Transportes Mundiales Ltda Santiago CLP 68,960 100 1 K
Panalpina Transportes Mundiales S.A. Buenos Aires ARS 795 100 1 K
Panalpina Transportes Mundiales S.A. de C.V. Santo Domingo DOP 25 100 1 K
Mondi Reinsurance Ltd. Hamilton CHF 2,000 100 1 K
Asia and Australia
Panalpina World Transport (Singapore) Pte. Ltd. Singapore SGD 2,500 100 1 K
PT Panalpina Nusajaya Transport Jakarta IDR 1,500,000 100 1 K
Panalpina China Ltd. Hong Kong HKD 1,000 100 1 K
Panalpina World Transport (PRC) Ltd. Shanghai CNY 13,500 100 1 K
Panalpina Logistics (Wuhan) Ltd. Wuhan CNY 5,000 100 1 K
Panalpina Asia-Pacific Services Ltd. Hong Kong HKD 500 100 1 K
Panalpina World Transport Ltd. Hong Kong HKD 500 100 1 K
International Claims Handling Services Ltd. Hong Kong HKD 10 100 1 K
Panalpina Taiwan Ltd. Taipei TWD 15,500 100 1 K
Panalpina IAF (Korea) Ltd. Seoul KRW 500,000 100 1 K
Panalpina World Transport (Thailand) Ltd. Bangkok THB 14,000 100 1 K
Panalpina Asia-Pacific Services (Thailand) Ltd. Bangkok THB 10,000 100 1 K
Panalpina Macao Ltd. Macao HKD 1,000 100 1 K
Panalpina World Transport (Vietnam) Company Ltd. Ho Chi Minh City VND 4,120,250 49 2 K
Panalpina Transport (Malaysia) Sdn. Bhd. Kuala Lumpur MYR 4,215 100 1 K
Panalpina World Transport (Japan) Ltd. Tokyo JPY 50,000 100 1 K
Panalpina World Transport (India) Pvt. Ltd. Delhi INR 1,668 100 1 K
Panindia Cargo Private Ltd., Delhi Delhi INR 100 100 1 K
Panalpina World Transport (Philippines) Inc. Manila PHP 10,000 100 1 K
Panalpina World Transport (Pty) Ltd. Sydney AUD 7,500 100 1 K
Panalpina Kazakhstan LLP Almaty KZT 145 100 1 K
Panalpina Annual Report 2009
139

140
Consolidated and Annual Financial Statements 2009
Company
Panalpina Annual Report 2009
Registered
Currency
Nominal
capital
in 1,000
Equity
interest
in %
Investment
Method
of consolidation
Africa and Middle East
Panalpina Gulf LLC Dubai AED 1,000 49 2 K
Panalpina Jebel Ali Ltd. Jebel Ali AED 100 100 1 K
Panalpina World Transport (Dubai) DWC-LLC Dubai AED 300 100 1 K
Panalpina World Transport (Kuwait) WLL Kuwait KWD 20 49 2 K
Panalpina (Bahrain) WLL Manama BHD 20 100 1 K
Panalpina Central Asia EC Manama USD 300 100 1 K
Panalpina Georgia LLC Tbilisi GEL 11 100 1 K
Panalpina Azerbaijan LLC Baku AZN 1 100 1 K
Panalpina Turkmenistan LLC Turkmenbashi TMT 62 100 1 K
Qatar Shipping Company (Panalpina Qatar) WLL Doha QAR 200 49 2 K
Panalpina Transports Mondiaux Cameroun S.A.R.L. Douala XAF 150,000 100 1 K
Panalpina Transports Mondiaux Algerie EURL Hassi Messaoud DZD 5,000 100 1 K
Panalpina Transports Mondiaux Congo SARL Pointe-Noire XAF 70,000 100 1 K
Panalpina Transports Mondiaux Gabon S.A. Port-Gentil XAF 50,000 90 1 K
Panalpina (Ghana) Ltd.
Panalpina Transportes Mundiais Navegaçao e Transitos,
Accra GHS 10 100 1 K
S.A.R.L. Luanda AON 18,000,000 92 1 K
K = fully consolidated
N = not consolidated
1 = capital participation 50 – 100 %
2 = controlling influence over management
3 = capital participation less than 50 %

Consolidated and Annual Financial Statements 2009
Report of the Statutory Auditor on the Consolidated
Financial Statements to the General Meeting
of Shareholders of
Panalpina World Transport (Holding) Ltd., Basel
As statutory auditor, we have audited the consolidated financial statements of Panalpina World Transport (Holding) Ltd., which comprise
the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position,
consolidated statement of changes in equity, consolidated statement of cash flows and notes on pages 80 to 140 for the year ended
31 December 2009.
Board of Directors’ Responsibility
The board of directors is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with
International Financial Reporting Standards (IFRS) and the requirements of Swiss law. This responsibility includes designing, implementing
and maintaining an internal control system relevant to the preparation and fair presentation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error. The board of directors is further responsible for selecting and applying
appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in
ac cordance with Swiss law and Swiss Auditing Standards as well as International Standards on Auditing. Those standards require
that we plan and perform the audit to obtain reasonable assurance whether the consolidated 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.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of
the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal
control system relevant to the entity’s preparation and fair presentation of the consolidated 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 entity’s
internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness
of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements for the year ended 31 December 2009 give a true and fair view of the financial
position, the results of operations and the cash flows in accordance with International Financial Reporting Standards (IFRS) and comply
with Swiss law.
Report on Other Legal Requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (article
728 CO and article 11 AOA) and that there are no circumstances incompatible with our independence.
In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists,
which has been designed for the preparation of consolidated financial statements according to the instructions of the board of directors.
We recommend that the consolidated financial statements submitted to you be approved.
KPMG AG
Regula Wallimann Fabien Lussu
Licensed Audit Expert Licensed Audit Expert
Auditor in Charge
Zurich, 5 March 2010
Panalpina Annual Report 2009
141

142
Consolidated and Annual Financial Statements 2009
Key Figures in CHF
Five-year review
in million CHF 2009 2008 2007 2006 2005
Forwarding services 7,340 10,597 10,548 9,301 8,280
Change in % (30.73) 0.47 13.41 12.33 11.11
Net forwarding revenue 5,958 8,878 8,641 7,735 6,949
Change in % (32.89) 2.74 11.71 11.31 13.55
Gross profit 1,377 1,742 1,803 1,591 1,408
Change in % (20.94) (3.43) 13.35 13.00 6.10
in % of net revenue 23.11 19.62 20.87 20.57 20.26
Consolidated profit 10.4 113.8 210.6 183.5 120.3
Change in % (90.82) (45.98) 14.77 52.54 20.30
in % of gross profit 0.76 6.53 11.68 11.53 8.54
EBITDA 79.7 240.7 360.8 312.7 214.2
Change in % (66.88) (33.29) 15.39 45.99 8.13
in % of gross profit 5.79 13.82 20.01 19.65 15.21
EBITA 42.5 204.7 310.7 277.9 177.9
Change in % (79.23) (34.13) 11.80 56.21 10.84
in % of gross profit 3.09 11.75 17.23 17.47 12.63
EBIT 29.9 193.0 299.4 261.0 165.6
Change in % (84.50) (35.54) 14.70 57.61 19.14
in % of gross profit 2.17 11.08 16.60 16.40 11.76
Cash generated from operations 311.8 274.5 278.9 321.3 216.4
Change in % 13.58 (1.58) (13.20) 48.48 9.07
in % of gross profit 22.64 15.76 15.47 20.19 15.37
Net cash from operating activities 259.8 193.2 209.5 240.9 141.9
Change in % 34.45 (7.78) (13.03) 69.77 318.58
in % of gross profit 18.87 11.09 11.62 15.14 10.08
Free cash flow 225.9 170.2 138.1 186.0 121.4
Change in % 32.73 23.20 25.74 53.21 (256.24)
in % of gross profit 16.41 9.77 7.66 11.69 8.62
Net working capital 132.2 351.6 487.8 414.4 418.7
Change in % (62.42) (27.92) 17.72 (1.03) 17.55
Capital expenditure on fixed assets 41.8 58.4 50.8 57.0 59.9
Change in % (28.34) 14.90 (10.84) (4.84) (22.31)
in % of gross profit 3.04 3.35 2.82 3.58 4.25
Net capital expenditure on fixed assets 29.4 25.6 45.4 54.0 33.2
Change in % 14.81 (43.56) (15.90) 62.65 (46.10)
in % of gross profit 2.14 1.47 2.52 3.39 2.36
Panalpina Annual Report 2009

Consolidated and Annual Financial Statements 2009
in million CHF 2009 2008 2007 2006 2005
Depreciation and amortization 49.8 47.8 61.5 51.7 48.5
Change in % 4.33 (22.33) 18.91 6.60 (17.94)
in % of gross profit 3.62 2.74 3.41 3.25 3.44
Personnel expenses 879.1 992.5 1,002.5 886.9 843.7
Personnel
Number of employees at year-end (world) 13,570 14,804 15,301 14,304 13,583
Number of employees at year-end (Switzerland) 737 778 769 755 659
Productivity ratios (CHF)
Net sales per average employee 429,864 582,867 587,344 579,766 533,241
Gross profit per average employee 99,343 114,356 122,581 119,235 108,050
Personnel expenses per average employee 63,430 65,163 68,138 66,474 68,747
Personnel cost in % of gross profit 63.85 56.99 55.59 55.74 59.92
Leverage (liabilities / equity) 1.24 1.27 1.23 1.17 1.13
Net interest-bearing liabilities (535) (381) (325) (372) (221)
Gross gearing (interest-bearing liabilities / equity) 0.02 0.02 0.03 0.03 0.02
Net gearing (net interest-bearing liabilities / equity) (0.63) (0.44) (0.32) (0.38) (0.26)
ROCE (EBIT less tax / capital employed) in % 6.14 23.03 34.84 31.96 20.95
Current cash debt coverage ratio
(net operating cash flow / average current liability) 0.27 0.19 0.20 0.26 0.18
Cash debt coverage ratio
(net operating cash flow / average total liability) 0.24 0.16 0.18 0.23 0.16
Return on equity in % 1.2 12.1 21.2 20.2 14.6
Change in % (89.97) (42.92) 4.83 38.07 5.81
Panalpina Annual Report 2009
143

144
Consolidated and Annual Financial Statements 2009
Balance Sheet in CHF
Five-year review
in million CHF 2009 2008 2007 2006 2005
ASSETS 1,925 1,971 2,278 2,108 1,830
Change in % (2.35) (13.48) 8.08 15.17 16.26
Current assets 1,599 1,679 1,922 1,773 1,496
Change in % (4.78) (12.64) 8.40 18.48 18.45
Liquid funds 548 401 358 376 241
Change in % 36.69 12.00 (4.73) 56.00 (2.22)
Receivables and other current assets 1,050 1,278 1,564 1,397 1,255
Change in % (17.80) (18.28) 11.94 11.28 23.45
Non-current assets 326 292 356 336 334
Change in % 11.66 (18.00) 6.06 0.48 7.40
Property, plant and equipment 141 148 168 162 152
Change in % (4.35) (11.89) 3.47 6.58 (4.40)
Financial assets 113 70 103 72 73
Change in % 60.07 (31.29) 42.59 (1.51) 19.67
Intangible assets 72 74 86 102 109
Change in % (2.52) (14.06) (15.63) (6.70) 19.78
LIABILITIES AND EQUITY 1,925 1,971 2,278 2,108 1,830
Change in % (2.35) (13.48) 8.07 15.16 16.28
Liabilities 1,061 1,100 1,252 1,131 972
Change in % (3.50) (12.18) 10.73 16.29 23.55
Payables, accruals and deferred income 878 912 1,056 1,002 837
Change in % (3.69) (13.65) 5.33 19.79 26.79
Borrowings 13 20 33 27 52
Change in % (36.49) (39.38) 22.60 (46.99) (9.65)
Provisions 170 167 163 101 84
Change in % 1.54 2.91 61.10 20.24 20.00
Non-controlling interests 7 8 7 8 7
Equity 857 864 1,019 970 851
Change in % (0.83) (15.25) 5.07 13.98 8.55
Share capital 50 50 50 50 50
Change in % 0.00 0.00 0.00 0.00 0.00
Treasury shares (193) (198) (101) (15) (20)
Change in % (2.62) 95.03 575.98 (25.00) 100.00
Translation differences (136) (146) (74) (65) (57)
Change in % (6.51) 96.03 13.50 14.04 (34.48)
Retained earnings 1,136 1,157 1,145 1,000 878
Change in % (1.89) 1.09 14.50 13.90 6.94
Panalpina Annual Report 2009

Key Figures in EUR
Five-year review
Consolidated and Annual Financial Statements 2009
in million EUR 2009 2008 2007 2006 2005
Forwarding services 4,861 6,677 6,421 5,895 5,339
Change in % (27.20) 3.99 8.92 10.41 10.61
Net forwarding revenue 3,945 5,594 5,260 4,903 4,480
Change in % (29.47) 6.34 7.28 9.44 13.02
Gross profit 912 1,097 1,098 1,008 908
Change in % (16.88) (0.04) 8.91 11.01 5.58
in % of net revenue 23.11 19.62 20.87 20.56 20.27
Consolidated profit 6.9 71.7 128.2 116.3 77.6
Change in % (90.35) (44.08) 10.23 49.87 19.75
in % of gross profit 0.76 6.53 11.68 11.54 8.55
EBITDA 52.8 151.7 219.7 198.2 138.1
Change in % (65.19) (30.96) 10.83 43.52 7.64
in % of gross profit 5.79 13.82 20.01 19.66 15.21
EBITA 28.1 129.0 189.1 176.1 114.7
Change in % (78.17) (31.80) 7.40 53.53 10.29
in % of gross profit 3.09 11.75 17.23 17.47 12.63
EBIT 19.8 121.6 182.2 165.4 106.8
Change in % (83.71) (33.26) 10.18 54.87 18.67
in % of gross profit 2.17 11.08 16.60 16.41 11.76
Cash generated from operations 206.5 176.2 232.1 203.6 139.5
Change in % 17.20 (24.09) 13.98 45.95 8.56
in % of gross profit 22.64 16.05 21.14 20.20 15.36
Net cash from operating activities 172.0 132.0 127.5 152.7 91.5
Change in % 30.28 3.54 (16.48) 66.89 315.91
in % of gross profit 18.87 12.03 11.62 15.15 10.08
Free cash flow 149.6 111.9 84.1 117.9 78.3
Change in % 33.65 33.11 (28.68) 50.57 255.67
in % of gross profit 16.41 10.20 7.66 11.70 8.62
Net working capital 89.0 236.1 293.1 256.9 269.0
Change in % (62.28) (19.46) 14.09 (4.49) 16.50
Capital expenditure on fixed assets 28.2 39.2 30.5 35.4 38.5
Change in % (28.09) 28.38 (13.75) (7.88) (23.00)
in % of gross profit 3.09 3.57 2.78 3.51 4.24
Net capital expenditure on fixed assets 19.8 17.2 27.3 33.6 21.3
Change in % 15.22 (36.94) (18.79) 57.75 (46.62)
in % of gross profit 2.17 1.57 2.49 3.33 2.35
Panalpina Annual Report 2009
145

146
Consolidated and Annual Financial Statements 2009
in million EUR 2009 2008 2007 2006 2005
Depreciations and amortization 31.4 30.1 37.4 32.7 31.3
Change in % 4.33 (19.55) 14.44 4.73 (18.28)
in % of gross profit 3.62 2.74 3.41 3.25 3.44
Personnel expenses 553.9 625.4 610.2 562.1 544.0
Personnel
Number of employees at year-end (world) 13,570 14,804 15,301 14,304 13,583
Number of employees at year-end (Switzerland) 737 778 769 755 659
Productivity ratios
Net sales per average employee 284,667 367,260 357,539 367,461 343,816
Gross profit per average employee 65,787 72,048 74,620 75,572 69,667
Personnel expenses per average employee 39,967 41,059 41,478 42,130 41,747
Personnel cost in % of gross profit 60.75 56.99 55.59 55.75 59.92
Leverage (liabilities / equity) 1.24 1.27 1.23 1.17 1.13
Net interest-bearing liabilities (359) (256) (195) (231) (142)
Gross gearing (interest-bearing liabilities / equity) 0.02 0.02 0.03 0.03 0.02
Net gearing (net interest-bearing liabilities / equity) (0.63) (0.44) (0.32) (0.38) (0.26)
ROCE (EBIT less tax / capital employed) in % 6.14 23.03 34.84 31.96 20.95
Current cash debt coverage ratio
(net operating cash flow / average current liability) 0.27 0.19 0.20 0.26 0.18
Cash debt coverage ratio
(net operating cash flow / average total liability) 0.24 0.16 0.18 0.23 0.16
Return on equity in % 1.2 12.1 21.2 20.2 14.6
Change in % (89.97) (42.93) 4.83 38.07 5.81
Panalpina Annual Report 2009

Balance Sheet in EUR
Five-year review
Consolidated and Annual Financial Statements 2009
in million EUR 2009 2008 2007 2006 2005
ASSETS 1,294 1,323 1,311 1,169 1,021
Change in % (2.18) 0.92 12.17 14.56 7.09
Current assets 1,075 1,127 1,155 1,103 954
Change in % (4.65) (2.39) 4.69 15.54 16.54
Liquid funds 369 269 215 233 148
Change in % 37.33 25.14 (7.63) 57.26 (7.43)
Receivables and other current assets 705 858 940 870 806
Change in % (17.81) (8.70) 7.99 7.89 22.35
Non-current assets 220 196 214 209 215
Change in % 12.02 (8.38) 2.33 (2.80) 6.53
Property, plant and equipment 95 99 101 100 98
Change in % (3.86) (1.55) 0.71 2.61 (4.98)
Financial assets 76 47 62 45 47
Change in % 61.62 (23.23) 36.89 (5.01) 18.67
Intangible assets 48 49 52 64 70
Change in % (1.17) (3.98) (19.45) (8.90) 18.48
LIABILITIES AND EQUITY 1,297 1,323 1,369 1,311 1,169
Change in % (1.99) (3.33) 4.39 12.17 14.48
Liabilities 715 738 752 703 618
Change in % (3.14) (1.88) 7.01 13.79 23.18
Payables, accruals and deferred income 592 612 634 623 551
Change in % (3.33) (3.52) 1.83 13.07 31.61
Borrowings 9 14 20 17 13
Change in % (37.99) (32.27) 18.30 30.19 (45.24)
Provisions 115 112 98 63 54
Change in % 2.28 14.99 55.18 17.19 (8.81)
Non-controlling interests 5 5 4 5 4
Equity 577 580 612 603 547
Change in % (0.50) (5.31) 1.55 10.35 5.60
Share capital 34 34 30 32 32
Change in % (0.92) 11.73 (6.12) 0.00 0.00
Treasury shares (130) (133) (61) (1) (13)
Change in % (2.45) 117.91 5,992.36 26.17 100.00
Translation differences (92) (98) (45) (41) (37)
Change in % (6.18) 119.03 9.12 11.45 (33.46)
Retained earnings 765 777 688 622 564
Change in % (1.53) 12.94 10.61 10.27 4.35
Panalpina Annual Report 2009
147

Financial Statements 2009
Panalpina World Transport (Holding) Ltd.
Annual Financial Statements 2009
Panalpina Annual Report 2009
149

150
Annual Financial Statements 2009
Income Statement
for the years ended 31 December 2009 and 2008
in thousand CHF 2009 2008
Income
Income from participations 127,312 264,648
Financial income 37,295 39,488
Royalties income 21,859 0
Release of valuation allowance on loans to Group companies 61,579 0
Rental income 0 350
Total income 248,045 304,486
Expenses
Personnel expenses 10,252 11,591
Other administrative expenses 45,525 34,843
Financial expenses 35,792 152,743
Depreciation and value adjustments 33,077 27,534
Total expenses 124,646 226,711
Taxes 0 1,165
Profit for the year 123,399 76,610
Panalpina Annual Report 2009

Balance Sheet
as of 31 December (before profit appropriation)
Assets
Annual Financial Statements 2009
in thousand CHF 2009 2008
Current assets
Cash 332,067 198,113
Cash Pool receivables from Group companies 23,264 0
Receivables:
– from Group companies 9,069 2,803
– from third parties 811 772
Financial receivables from Group companies 87,724 159,216
Marketable securities 10,808 0
Prepaid expenses and deferred charges 43,147 52,297
Total current assets 506,890 413,201
Long-term assets
Participations 76,953 97,827
Loans to Group companies 263,132 287,859
Own shares 79,418 80,524
Total long-term assets 419,503 466,210
Total assets 926,393 879,411
Panalpina Annual Report 2009
151

152
Annual Financial Statements 2009
Liabilities and Equity
in thousand CHF 2009 2008
Short-term liabilities
Cash Pool payables to Group companies 47,743 84,863
Payables:
– due to Group companies 481 3,384
– due to third parties 1,873 2,907
Financial liabilities to Group companies 119,657 110,466
Accrued expenses 8,838 21,707
Total short-term liabilities 178,592 223,327
Long-term liabilities
Provisions 19,855 6,642
Total long-term liabilities 19,855 6,642
Total liabilities 198,447 229,969
Equity
Share capital 50,000 50,000
General legal reserve 10,000 10,000
Reserve for own shares 192,567 197,753
Special reserve 135,283 130,097
Accumulated earnings:
– balance brought forward from previous year 216,697 184,982
– profit for the year 123,399 76,610
Total equity 727,946 649,442
Total liabilities and equity 926,393 879,411
Panalpina Annual Report 2009

Notes to the Financial Statements
General
Annual Financial Statements 2009
The Group’s consolidated financial statements must be considered for an appropriate financial and economic assessment of the Group.
The presented statutory financial statements of Panalpina World Transport (Holding) Ltd., were prepared in accordance with the requirements
of the Swiss Code of Obligations (SCO).
Valuation methods and translation of foreign currencies
Treasury shares are valued at the lower of cost and market value. All other assets including participations are reported at cost less appropriate
write-downs. Assets and liabilities denominated in foreign currencies are translated into Swiss francs (CHF), using year-end rates
of exchange, except participations which are translated at historical rates. Marketable securities are reported at market value. Transactions
during the year which are denominated in foreign currencies are translated at exchange rates effective at the relevant transaction dates.
Resulting exchange gains and losses are recognized in the income statement with the exception of unrealized gains which are deferred.
Income from participations
The decrease of CHF 137.3 million is mainly attributable to the fact that the profit of most subsidiaries declined due to the financial crisis
and thus less dividends were distributed to Panalpina World Transport (Holding) Ltd.
Financial income
The decrease of CHF 2.1 million compared to the prior year is predominantly attributable to CHF 3.7 million less interest income from third
parties and CHF 3.4 million less interest income from subsidiaries, as well as CHF 5.0 million increased income from guarantee fees.
Royalties income
In 2009, Panalpina World Transport (Holding) Ltd. received for the first time a fee from its subsidiaries for usage of the Panalpina network
and trademark.
Release of valuation allowance on loans to group companies
As a result of a transfer of loans to a subsidiary, the Company was able to release valuation allowance amounting to CHF 61.6 million on
these loans.
Rental income
All real estate was sold in 2008, thus no rental income was generated in 2009.
Personnel expenses
The decrease of CHF 1.3 million is mainly due to lower compensation of the members of the Executive Board and members of key management.
In accordance with the Transparency Act, the compensation of the key management personnel is disclosed in note 29 in the
Group’s financial statements.
Other administrative expenses
The increase of CHF 10.7 million compared to prior year is for the most part attributable to additional legal and consulting expenses.
Financial expenses
The net decline in financial expenses of CHF 116.9 million is mainly due to the fact that in 2009 no further value adjustment of treasury
shares had to be recognized (2008: CHF 117.2 million).
Depreciation and value adjustments
In 2009, value adjustments to participations on subsidiaries amounting to CHF 33.0 million were debited to the income statement.
Net reversal of hidden reserves
In 2009, hidden reserves of net CHF 29 million (2008: nil) were reversed.
Panalpina Annual Report 2009
153

154
Annual Financial Statements 2009
Financial receivables and loans Group companies
Financial receivables and loans Group companies decreased by CHF 96.2 million compared to the previous year. This overall decrease
is partly a result of repayment and partly a result of movement from short-term loans to long-term loans. This is also the reason for the
increase of CHF 134.0 million in the cash position as well as the increase of CHF 23.3 million in Cash Pool receivables.
Marketable securities
In the year under review, investments of CHF 10.8 million were made in fixed-term deposits.
Participations
The principal direct and indirect subsidiaries of Panalpina World Transport (Holding) Ltd. are listed under the heading “Principal Group
companies and participations” on pages 138 to 140. The decrease of CHF 20.9 million is primarily due to the recording of a valuation
allowance on participations Group and third party.
Own shares
In the year under review, treasury shares purchased totalled 58,980 shares (2008: 878,630 shares) with an average purchase price per
share of CHF 88.89 (2008: CHF 119.32) and treasury share sales totalled 91,272 shares (2008: 54,156 shares) with an average sale price
of CHF 40.26 (2008: CHF 84.76). Of these shares a total of 82,523 (2008: 114,815) are held for serving the employee option plan. The
other 1,250,000 shares (2008: 1,250,000) are held for the share buyback program. This program was launched in 2007 by the Board of
Directors to return excess capital to the shareholders. The share buyback program includes up to 5 % of the total share capital, which
represents a maximum of 1,250,000 registered shares. The number of treasury shares held by Panalpina World Transport (Holding) Ltd.
meets the definitions and requirements of art. 659, 659a, 663b para 10 and 671a SCO.
Number of shares 31.12.2009
Panalpina Annual Report 2009
Movement
in year 31.12.2008
Movement
in year 31.12.2007
Total Panalpina World Transport (Holding) Ltd.
shares issued
Total Treasury shares held by
25,000,000 0 25,000,000 0 25,000,000
Panalpina World Transport (Holding) Ltd. 1,332,523 (32,292) 1,364,815 824,474 540,341
in % 5.33 5.46 2.16
Provisions
These include provisions relating to foreign exchange risks.
Share capital
As in the previous year, the fully paid-in share capital on 31 December 2009 amounts to CHF 50 million consisting of 25 million registered
shares at a par value of CHF 2.00 each. With regard to the authorized capital increase and share buyback program we refer to note 23 in
the Group’s financial statements.
in % 2009 2008
Shareholders
Ernst Göhner Stiftung, Switzerland 44.58 43.5
Deccan Value Advisors L.P., USA < 3 7.36
Capital Group Companies, Inc., USA < 3 5.05
Artisan Partners Limited Partnership, USA 5.01 3.03
FIL Ltd. (Fidelity International), Bermuda < 5 0
The Income Fund of America Inc., USA
Portfolio investment (according to the share register,
< 3 0
there are no more shareholders with holdings of more than 3 % or 5 %) 50.41 41.06
Nominees
Chase Nominees Ltd., UK 6.79 0
Nortrust Nominees Ltd., UK 2.29 0

General legal reserves
Annual Financial Statements 2009
The legal reserve must be at least 20 % of the share capital of Panalpina World Transport (Holding) Ltd. in order to comply with the SCO.
Panalpina World Transport (Holding) Ltd. has met the legal requirements for legal reserves under Article 671 SCO.
Guarantees
in thousand CHF 2009 2008
Guarantees in favor of third parties
Guarantees and indemnity liabilities, Swiss Code of Obligations, article 663b para 1 136,002 110,430
Additionally, Panalpina World Transport (Holding) Ltd., Basel, has issued letters of awareness in favor of various banks concerning liabilities
due from subsidiaries amounting to CHF 0.2 million (previous year: CHF 11.9 million).
Contingent liabilities
In 2008, Panalpina World Transport (Holding) Ltd. has signed a letter of indemnity as a security for the intraday Cash Pool overdraft limits
over a maximum amount of CHF 60 million.
Panalpina World Transport (Holding) Ltd. carries joint liability to the federal tax authorities for value-added tax of all Swiss subsidiaries.
Pending legal claims
As described under note 31 to the consolidated financial statements, Panalpina Inc., a wholly owned subsidiary of Panalpina World Transport
(Holding) Ltd., was served a “subpoena” by the U.S. Department of Justice (DOJ) in January 2007. The subpoena resulted from an investigation
and a subsequent plea agreement with one customer and the DOJ for potential violations of the U.S. Foreign Corrupt Practices Act
(FCPA) by allegedly making improper payments through Panalpina as its customs agent to Nigerian officials to secure preferential customs
treatment. The investigation has been substantially completed, and in December 2009, Panalpina commenced settlement discussions
with the DOJ and the SEC. It is expected that this process will take several months until finalization.
In October 2007, Panalpina’s headquarter in Switzerland was raided by the Swiss competition authorities. This activity was part of a coordinated
investigation of several competition authorities against various major freight forwarding companies for alleged anti competitive
behavior. In February 2010, Panalpina was served with a Statement of Objections by the European Commission, alleging anti competitive
behaviour in the freight forwarding industry. The Statement of Objections enables the addressees to respond to the Commission’s
preliminary findings and does not prejudge the final decision of the European Commission.
For further details, descriptions and assessment, please refer to note 31 to the consolidated financial statements.
Risk management
The detailed disclosures regarding risk management / assessment that are required by Swiss law are included in the Panalpina Group’s
consolidated financial statement on page 119.
Panalpina Annual Report 2009
155

156
Annual Financial Statements 2009
Appropriation of Available Earnings
The Board of Directors proposes the following appropriation of available earnings of total CHF 340,096,360 at the Annual General Meeting:
in CHF 2009
Distribution of an ordinary dividend of CHF 0.00 gross per share* 0
To be carried forward 340,096,360
Total 340,096,360
* It is not planned to pay dividends on own shares held by the Group.
Panalpina Annual Report 2009

Panalpina World Transport (Holding) Ltd., Basel
Annual Financial Statements 2009
Report of the Statutory Auditor on the Financial
Statements to the General Meeting of Shareholders of
As statutory auditor, we have audited the financial statements of Panalpina World Transport (Holding) Ltd. which comprise the balance
sheet, income statement and notes on pages 150 to 156 for the year ended 31 December 2009.
Board of Directors’ Responsibility
The board of directors is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law and
the company’s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control system
relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The board of
directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are
reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to
the entity’s preparation of the 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 entity’s internal control system. An audit also includes evaluating
the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the
overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Opinion
In our opinion, the financial statements for the year ended 31 December 2009 comply with Swiss law and the company’s articles of
incorporation.
Report on Other Legal Requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence
(article 728 CO and article 11 AOA) and that there are no circumstances incompatible with our independence.
In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system
exists, which has been designed for the preparation of financial statements according to the instructions of the board of directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and the company’s articles of incorporation.
We recommend that the financial statements submitted to you be approved.
KPMG AG
Regula Wallimann Fabien Lussu
Licensed Audit Expert Licensed Audit Expert
Auditor in Charge
Zurich, 5 March 2010
Panalpina Annual Report 2009
157

158
Appendix
Information for Investors
Share information
Share symbol PWtN
Reuters PWtN.S
bloomberg PWtN SW
trading exchange SiX
Key figures
Five-year development
in million CHF
Net forwarding revenue
9,000
7,500
6,000
4,500
3,000
1,500
0
1,000
875
750
625
500
375
250
125
0
6,949
7,735
2005 2006 2007 2008 2009
Shareholders’ equity
Gross profit
1,900
1,750
1,600
1,450
1,300
1,150
1,000
858
978
Panalpina Annual Report 2008
8,641
1,026
8,878
871
5,958
864
2005 2006 2007 2008 2009
1,408
1,591
1,803
1,377
2005 2006 2007 2008 2009
8
Fiscal year ends 31 december
Valoren 000216808
iSiN CH0002168083
Share register SiS Aktienregister AG, Olten, Switzerland
in million CHF 2009 2008 * Change in %
Net forwarding revenue 5,958 8,878 – 32.9
Gross profit 1,377 1,742 – 21.0
EbitdA 80 241 – 66.8
Ebit (operating result) 30 193 – 84.5
Consolidated profit 10 114 – 91.2
Cash generated from operations 312 274 +13.9
Net capital expenditure 29.4 25.6 +14.8
balance sheet 1,925 1,971 – 2.3
Equity 864 871 – 0.8
Employees (average) 13,860 15,231 – 9.0
Gross profit per employee (in CHF) 99,343 114,346 –13.1
* Certain comparatives have been restated to conform to the current period’s presentation.
1,742
Consolidated profit
210
175
140
105
70
35
0
EBIT
320
280
240
200
160
120
80
40
0
120
2005 2006 2007 2008 2009
166
184
261
211
299
114
193
10
30
2005 2006 2007 2008 2009

Ordinary gross dividend payments
Financial year
Panalpina World Transport
SPI Swiss Performance Index
50
1 Jan 09 1 Mar 1 May 1 Jul 1 Sep 1 Nov 1 Jan 10
170
150
130
110
90
70
Amount
(in million CHF) *
Per share
(in CHF)
2009 0 *** 0.00
2008 45 1.90
2007 80 3.20
2006 75 3.00
2005 50 ** 2.00
2004 60 * 2.40
2003 30 1.20
* based on 25,000,000 shares
** included a special one-time jubilee dividend of CHF 20 million declared at the ordinary Shareholders’ Meeting of 20 May 2005
*** Subject to vote by the Annual General Meeting of 4 May 2010
Earnings per share
Weighted average of
oustanding shares 2009 2008 Change in %
basic EPS 23,657,343 CHF 0.36 CHF 4.70 – 92.3
diluted EPS 23,678,743 CHF 0.36 CHF 4.70 – 92.3
Share price development
2009 2008
Last day of trading previous year (in CHF) 59.00 196.30
High 90.95 199.00
Low 37.20 50.50
Last day of trading current year 65.80 59.00
Average trading volume 73,178 131,837
total shareholder return (in %) 11.5% – 69.0%
Market capitalization as per 31 december (in CHF million) 1,645 1,475
Share price development in comparison to SPI
1 January 2009 to 31 december 2009
Financial calendar
Appendix
1 January to 31 december Financial year
11 March 2010 2009 full-year result
29 April 2010 Q1 result
4 May 2010 Annual General Meeting
4 August 2010 Half-year result
4 November 2010 Nine-months result
9 March 2011 2010 full-year result
3 May 2011 Annual General Meeting
Panalpina Annual Report 2008
159

160
Appendix
Panalpina – Main Offices Worldwide
Algeria
Algiers, Hassi Messaoud
Angola
Cabinda, Lobito, Luanda, Soyo
Argentina
buenos Aires, Ezeiza
Australia
brisbane, Melbourne, Perth, Sydney
Austria
Graz, Hoechst, innsbruck, Linz,
Salzburg, Vienna
Azerbaijan
baku
bahrain
Manama
belgium
Antwerp, brussels, Liège
brazil
belo Horizonte, Campinas, Curitiba,
Joinville, Manaus, Porto Alegre,
Rio de Janeiro, São Paulo
Cameroon
douala
Canada
Calgary, Edmonton, Kitchener,
London, Montreal, Ottawa, Quebec
City, toronto, Vancouver, Windsor,
W i n n i p e g
Chile
iquique, Santiago
Panalpina Annual Report 2008
China
beijing, Changsha, Changzhou,
Chengdu, Chongqing, dalian,
Fuzhou, Guangzhou, Hangzhou,
Hong Kong, Macau, Nanjing, Ningbo,
Qingdao, Shanghai, Shenyang, Shen-
zhen, Suzhou, tianjin, Urumqi,
Weihai, Wuhan, Wuxi, Xiamen, Xi’an,
Zhongshan
Colombia
barranquilla, bogotá, buenaventura,
Cali, Cartagena, Medellín, Pereira
Congo
Pointe-Noire
Costa Rica
San José
Croatia
Rijeka
Czech Republic
brno, Ceske budejovice, Ostrava,
Prague
denmark
Copenhagen
dominican Republic
Santo domingo
Ecuador
Guayaquil, Quito
Egypt
Cairo
El Salvador
San Salvador
Finland
Helsinki
France
Annecy, blois, bordeaux, Fos,
Giberville, Le Havre, Lille, Lyon,
Marseille, Montpellier, Mulhouse,
Nantes, Nice, Paris, Strasbourg,
toulouse
Gabon
Libreville, Port-Gentil
Germany
bad Waldsee, berlin, bremen,
Cologne, dortmund, dresden,
dussel dorf, Frankfurt, Hamburg,
Hanover, Kassel, Kehl, Leipzig,
Mannheim, Munich, Muens ter /
Osnabrueck, Nuremberg, Stuttgart
Ghana
Accra, takoradi, tema
Hungary
budapest
india
bangalore, Chennai, Cochin,
Coimbatore, Hyderabad, Kolkata,
Mumbai, New delhi, Pune, tirupur,
Vishakhapatnam
indonesia
Jakarta, Semarang, Surabaya
ireland
dublin, Shannon
italy
bergamo, biella, bologna, Florence,
Genoa, Milan, Rome, turin, Vicenza
Japan
Nagoya, Osaka, tokyo
Kazakhstan
Aktau, Almaty, Atyrau
Korea
busan, iksan, incheon, Seoul

Kuwait
Safat
Luxembourg
Luxembourg
Malaysia
Johor bahru, Kuala Lumpur, Penang
Mexico
Cancún, Guadalajara, Mexico City,
Monterrey, Queretaro, Villahermosa
the Netherlands
Amsterdam, Eindhoven, Maastricht,
Moerdijk, Rotterdam
New Zealand
Auckland
Norway
Oslo, Sandnes
Panama
Colón, Panamá
Peru
Callao, Lima
Philippines
Cebu, Manila
Poland
Gdynia, Warsaw, Wroclaw
Portugal
Lisbon, Porto
Puerto Rico
San Juan
Qatar
doha
Romania
bucharest
Russia
Astrakhan, Chelyabinsk, irkutsk,
Moscow, Murmansk, Nakhodka,
St. Petersburg, tyumen, Usinsk,
Yekaterinburg, Yuzhno-Sakhalinsk
Saudi Arabia
Al Khobar, Jeddah, Riyadh
Serbia
belgrade
Singapore
Singapore
Slovakia
bratislava
South Africa
Johannesburg
Spain
barcelona, bilbao, Madrid, Valencia
Sweden
Gothenburg, Stockholm
Switzerland
basel, berne, Geneva, Lugano,
St. Gallen, Zurich
taiwan
Kaohsiung, taichung, taipei
thailand
bangkok
turkey
istanbul, izmir
turkmenistan
Ashgabat, balkanabat, turkmenbashi
Ukraine
Kiev
United Arab Emirates (UAE)
dubai, Jebel Ali, Sharjah
Appendix
United Kingdom (UK)
Aberdeen, birmingham, Glasgow,
Great Yarmouth, London, Manchester
United States of America (USA)
Atlanta, boston, bradley, Charleston,
Charlotte, Chicago, Columbus,
dallas, denver, detroit, El Paso,
Greenville, Houston, Huntsville,
Laredo, Los Angeles, McAllen,
Memphis, Miami, Minneapolis,
Nashville, New Orleans, New York,
Norfolk, Orlando, Philadelphia,
Phoenix, San diego, San Francisco,
Seattle, Saint Louis, tampa, tulsa,
Washington dC
Uruguay
Montevideo
Venezuela
Caracas, Maiquetía / La Guaira,
Maracaibo, Puerto Cabello,
Puerto La Cruz, Puerto Ordaz,
Valencia
Vietnam
Hanoi, Ho Chi Minh City
Panalpina Annual Report 2008
161

162
Appendix
Pictures
the black and white illustrations show the Chairman
of the board of directors and members of the Executive
board as well as representatives of the management.
Pages 7,
8 and 9
Panalpina Annual Report 2008
Rudolf W. Hug (Chairman of the board of
directors) and Monika Ribar (CEO)
Page 10 Monika Ribar (CEO)
Page 11 Rudolf W. Hug (Chairman of the board of
directors)
Page 13 Panalpina Executive board
Page 36 Renate Möckli (Corporate Head of
Controlling)
Page 61 Nicholas Wyss (Global Head of industry
Vertical Retail and Fashion)
Page 63 Glen barnes (Area Manager Northwest
Europe)
Photography Julian Salinas

Imprint
Panalpina World Transport
(Holding) Ltd.
Viaduktstrasse 42
P. O. Box
CH-4002 Basel
Switzerland
Phone +41 61 226 11 11
Fax +41 61 226 11 01
info@panalpina.com
www.panalpina.com
The Panalpina Annual Report is published
in German and English.
For additional copies please refer to the
above address or send us an e-mail.
An electronic version is available at:
www.panalpina.com /ar
Editorial body
Panalpina World Transport (Holding) Ltd.
Corporate Communications
Concept / Design
Wirz Corporate AG, Zurich
English translation/editing
text control, Zurich
BMP Translations AG, Basel
Word + Image, Zufikon
Lithography
Detail AG, Zurich
Printed by
Neidhart + Schön AG, Zurich
Consultant on sustainability chapter
sustainserv, Zurich and Boston
Appendix
Disclaimer
Certain sections of this Annual Report may contain forward-looking statements that are based on management’s expectations,
estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain
risks and uncertainties, which are difficult to predict. Therefore, future developments and trends may differ materially from what
is forecast in forward-looking statements.
All forward-looking statements speak only as of the date of their publication or, in the case of any document incorporated by
reference, the date of that document. All subsequent written and oral forward-looking statements attributable to the Company
or any person acting on the Company’s behalf are qualified by the cautionary statements. The Company does not undertake
any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or
changes in expectations after the date of this report.
Panalpina Annual Report 2009
163

Panalpina World Transport
(Holding) Ltd.
Viaduktstrasse 42
P. O. Box
CH-4002 Basel
Phone +41 61 226 11 11
Fax +41 61 226 11 01
info@panalpina.com
www.panalpina.com