Annual Review 2011 - The Nuance Group

The Nuance Group
Annual Review 2011
A leader in travel retail

The Nuance Group
Annual Review 2011
Our strategy
in action
13
progress
across our operations
22Reviewing
in 2011
Contents
Overview
What we do 02
Where we do it 04
Our business model 06
Chairman’s introduction 07
President & CEO’s report 08
Review of 2011
Our strategy in action 13
Our marketplace 20
Our operations 22
Our people 28
Financial statements
Consolidated financial statements 30
Executive management 32
Shareholders, Board and Committees 34
Where to find us 36
Where to find us
36
02
We create diverse retail
environments…
… for over 31 million
travelling customers

The Nuance Group
Annual Review 2011
R
aising the standards
in travel retail
Millions of people travel around our
planet each day. For many of them,
shopping is an essential part of the
journey: an occasion to be anticipated
and enjoyed.
At Nuance, our role is to enhance the
travel retail experience wherever and
whenever possible. We do this by putting
consumers at the heart of our business,
serving them with the right products in a
relevant way. We call it ‘global strength
with a local touch’.
In 2011 we again broke new ground
– winning valuable contracts and
improving existing ones to deliver
another excellent year of growth.
Roberto Graziani
President & CEO
01
Overview
Review of 2011
Financial statements

The Nuance Group
Annual Review 2011 What we do
02
Global strength
with a local touch
Across four continents, we create diverse retail environments
and sales channels that reflect passenger profiles as well as
local culture and history. Innovative and hugely popular with
customers, our store concepts form one of the industry’s
most dynamic portfolios.
Airports
Our airport retail operation is a major part of our business. Drawing on decades
of experience understanding the consumer’s needs, we combine local market
knowledge with our global expertise to provide travellers with a unique shopping
experience. Working closely with our airport partners around the globe, we
develop innovative retail offers, tailored to the needs of their markets.
Our store concepts
As a leading travel retail operator, we constantly evolve our retail offer to match the
passenger profiles at any given location. Our portfolio of store concepts around the
globe has been developed to meet these diverse needs.
Tax and duty free stores
Many of our tax and duty free concepts are effectively general
merchandise stores, encompassing a diverse array of product
categories, including perfume and cosmetics, liquor, tobacco,
confectionery and travel accessories. Each category is presented
in its own carefully designed environment to guarantee maximum
appeal to customers. Gate shops and arrivals shops complement
this group of concepts.
Arrival shops
We also offer duty free shopping upon arrival where legislation
permits. Passengers usually welcome being able to stock up on
items such as liquor, tobacco, perfumes and confectionery at duty
free prices on arrival. The introduction of restrictions for liquids and
gels in travellers’ hand luggage makes this an increasingly popular
retail opportunity.

The Nuance Group
Annual Review 2011
343
Shops
59
Locations
Retail Services & Distribution
75,801
Global retail space square metres
Our Retail Services & Distribution (RS&D) operation offers independent travel retail
operators and airlines a wide assortment of core category and selected specialty goods.
By utilising the full strength of the Group, RS&D has successfully harnessed our best
practice expertise in product assortment, category management, marketing and training
for our clients, extending the benefits of our retail knowledge and innovation.
Major brands and products
Our global retail platform brings thousands of products to market as well as unique
concepts developed specifically for our stores. We work closely with suppliers to
offer customers a strong and exciting range of international brands within each
product category.
Concept stores
We have a growing portfolio of concept stores around certain
product categories or specific customer segments. We have
already successfully introduced exciting concepts across beauty,
confectionery, fashion and accessories, technology and many
more, and we continue to enhance this offering through the
introduction of innovative concepts in many locations.
03
Brand boutiques
Many of the world’s most recognised global brands trust us to
handle their airport retail operations. The development of these
stand-alone shops involves close co-operation between our brand
partners and our category professionals, to ensure that the brand’s
offer aligns with the needs of consumers in the travel environment.
Overview
Review of 2011
Financial statements

The Nuance Group
Annual Review 2011 Where we do it
04
North
America
5,791
Square metres of sales area
406
Team members
Airport operations
Canada – Calgary, Toronto
USA – Chicago, Denver, Fort
Lauderdale, Houston, Las Vegas
More about our operations
in North America on page 24
Europe
36,065
Square metres of sales area
2,029
Team members
Airport operations
Austria – Vienna
France – Toulouse
Germany – Düsseldorf, Hamburg,
Malta – Luqa
Portugal – Faro, Horta (Azores),
Lisbon, Porto, P. Delgada (Azores),
Sta. Maria (Azores), Madeira
Sweden – Gothenburg, Jönköping,
Kalmar, Karlstad, Luleå, Malmö,
Norrköping, Örnsköldsvik, Östersund,
Skellefteå, Stockholm-Arlanda,
Stockholm-Bromma, Sundsvall,
Umeå, Visby
Switzerland – Geneva, Zürich
Turkey – Antalya, Kayseri
UK – Cardiff, East Midlands, London–
Gatwick, London–Heathrow,
Manchester, Glasgow–Prestwick
Off-airport operation
UK – Center Parcs
More about our operations
in Europe on page 22

The Nuance Group
Annual Review 2011
17
Countries and territories
For over
31 million
travelling customers
Asia
16,521
Square metres of sales area
1,135
Team members
Airport operations
China – Zhuhai, Hong Kong (SAR),
India – Bangalore
Singapore
Off-airport operation
Macau (SAR)
More about our operations
in Asia on page 25
95
Years’ retail experience
Australia
17,424
Square metres of sales area
1,044
Team members
Airport operations
Brisbane, Cairns, Melbourne,
Perth, Sydney
Off-airport operation
Canberra
More about our operations
in Australia on page 23
4,663
Team members
05
Overview
Review of 2011
Financial statements

The Nuance Group
Annual Review 2011 Our business model
06
Our business model
Retail, focused on travel consumers
ABC1 consumers
The benefits
Our key focus
Predicted long-term
growth in travel
Achieve maximum penetration and spend
Our philosophy
We are a consumer-driven organisation,
and believe this is essential for us to thrive
in the fast-moving retail environments
in which we operate.
This includes:
Adopting a tailor-made approach to the
branding and design of our stores to
match the consumer profile.
Utilising our experience and research
to ensure our product mix maximises
consumer spend.
Delivering a world-class customer service
that is consistent at the point of purchase.
Having a global presence, supported by
local knowledge.

The Nuance Group
Annual Review 2011 Chairman’s introduction
W elcome
I am pleased to report a year of significant
progress for The Nuance Group.
This has been an excellent year for The Nuance Group,
as our business model again proved its worth. We
operate in a fast-paced environment where we match
our retail approach in each location to the needs of
travellers. Put simply, we make sure that the consumer is
at the heart of our business, using our experience to
deliver world-class service and maximise consumer
spend across our portfolio.
On behalf of the Board, I would like to place on record
our thanks to the Group’s management team. As we
celebrated our 95th year in retail and our 50th year at
Zurich Airport, as well as our 20th year at Perth and 10th
at Singapore, our team, ably led by Roberto Graziani,
continued to raise the bar for travel retail. Our
management resources were strengthened during the
year by the arrivals of Derek Larsen and Andreas Rudolf,
our new CEO Australia & New Zealand and Chief
Financial Officer respectively. Derek is a well-known
figure in the region’s airport retail industry with over
20 years’ experience, most recently as General Manager
for Sydney Airport’s retail operations, whilst Andreas
brings two decades of finance experience and a wealth
of knowledge gathered across a number of highly
competitive industries.
There was one change to the Board during 2011.
Peter Everts retired in September, with Salvatore Dina
elected in his place. I would like to thank Peter for his
many valuable contributions and wish him well in
retirement. Peter chaired our Audit Committee and
has been succeeded by Vittorio Levi.
We welcomed a new shareholder in 2011, with the
conclusion of the deal that saw PAI Partners purchase
Stefanel’s 50% share in February. PAI is now co-owner
of the Group alongside GECOS SpA, and the Board
looks forward to working with both partners as well as to
their continuing support in the future.
In light of the recent global financial crisis, the corporate
governance of all businesses has rightly been the subject
of increased interest. As Chairman, one of my roles is to
make sure that good governance is not only part of our
Group but is embedded in our processes. During 2011,
the Board held regular discussions on governance
matters and also ensured that our practices and
procedures reflect the highest standards.
In conclusion, I wish to thank all of our people for their
support over the last 12 months. Your energy and
expertise is the foundation stone of The Nuance Group
and is the single most important factor in making us the
successful organisation we are today.
Josef A Felder
Chairman
07
Overview
Review of 2011
Financial statements

The Nuance Group
President &
Annual Review 2011 CEO’s report
08
A strategy focused
on growth
This has been another good year for Nuance, against
a challenging backdrop of issues relating to currency
volatility, increased legislation and faltering economies.
1,867,534
Consolidated revenue CHF ’000
111,740
Consolidated EBITDA CHF ’000
Performance overview
The efficiencies we have introduced in the last two years,
together with our continued investment in growth
initiatives, have delivered a good financial performance
for The Nuance Group, despite significant challenges in
many markets.
Our headline figures make for good reading: reported
revenue was broadly the same as the previous year,
at approximately CHF 1,867.5 million; (CHF 2,458.9 million
on an aggregate basis); EBITDA improved again, this
time by over 14.2% to some CHF 112 million; and net
profit for the year rose by 52% to CHF 51 million. This
year’s performance would have been better still without
the impact of currency translation and the strong Swiss
Franc, our reporting currency. At constant exchange
rates the figures would show sales up by 8.3%, EBITDA
by 29.3% and net profit by 82.1% versus 2010.
Regional and channel breakdown
The strength of a number of currencies in our key
operating areas, including the Australian Dollar and the
Swiss Franc, affected passenger spend rates (PSR) in
those regions, although the overall impact was to some
extent offset by the weaker US Dollar which led to higher
PSR in the US and countries pegged to its currency.
Our business in Asia delivered an outstanding result and
accounted for 19.6% of sales, with revenue up by 26.0%
(at constant exchange rates) over the previous year.
This was largely driven by the increased prosperity of
Chinese citizens and their desire to travel and spend at
destinations such as Hong Kong and Singapore. We are
increasingly good at tailoring our offer to reflect the
priorities of different populations, serving them with the
right products in a relevant way to maximise revenue.
82,725
Consolidated EBIT CHF ’000
The rise in passenger volumes from China also provided
the impetus for a healthy PSR and a rewarding
performance in North America.
Europe, which delivered 46.0% of revenue for the year,
remains the heartland of our business. Although
we achieved good growth across the continent
as a whole, there were some variations between
individual countries, as economies in some of the more
developed nations continued to falter. However, our
Turkish business remained one of our most successful
locations, a performance that was enhanced by the
refurbishment of our operations at Antalya’s Terminal 1.
In Australia, sales grew marginally by 2% due to the
strong Australian Dollar and the impact of legislation
which governs the sale and display of tobacco products.
This is a key issue and an ongoing challenge for our
business in Australia. We are closely monitoring the
situation, particularly as there is a possibility that the
Australian Government could strengthen the legislation
even further during the coming months and years.
Despite the subdued performance, Australia remains
a key region for us, accounting for 27.8% of sales.
In terms of channels, the Airports business continues to
account for the overwhelming majority of our revenue,
although our Retail Services & Distribution arm (RS&D)
again enjoyed another year of significant growth.
Revenue rose by 36% at constant exchange rates as we
acquired new customers and opened up new territories,
including Russia. Whilst RS&D is an important channel in
its own right, it also plays an important role for the Group
by opening doors to certain markets that our direct retail
business can exploit at a later date.

The Nuance Group
Annual Review 2011
Improve profitability
of continuing business
– Renew expiring contracts
– Operational performance
– Performance management
and best practice sharing
Pursue strong growth
– Organic growth
– Mergers and acquisitions
09
Overview
Review of 2011
Financial statements

The Nuance Group
President &
Annual Review 2011 CEO’s report
10
Breaking
new ground
In 2011, we responded to the
challenging retail environment
by developing a new duty free
store ‘blueprint’ driven by
extensive consumer research
and customer understanding.
First unveiled at Antalya in
Turkey in May, this innovative
concept incorporates pioneering
interactive technology in-store
to appeal to today’s increasingly
technology-aware consumer.
+20%
Delivering our strategy
Our performance continues to be driven by our Group
strategy, which has two key priorities:
1. Improve the profitability of continuing business
We worked hard during the year to profitably renew
expiring contracts and extend contract life. For example,
we extended the perfume and cosmetics concession
at Singapore until 2014 and at the time of going to print
(April 2012), we are defending an important duty free
contract in Hong Kong.
Our portfolio constantly changes as market conditions
dictate and the year saw us close a number of locations
as part of this evolutionary process. In Paris, it became
clear that our joint venture partner Aéroports de Paris
(ADP) no longer shared our vision and with reluctance,
we made the decision to sell our stake in Duty Free Paris.
We wish them every success in the future. In 2011,
we also ended our operations at a few smaller
European locations.
Improving performance management and sharing best
practice are key aspects of the drive towards increased
profitability and in 2011, we began to reap the rewards of
the integration of our Singapore and Hong Kong ventures
under a regional structure. We have leveraged our airport
operations in the region and introduced initiatives that
have enabled the locations to benefit from the skills and
experiences of each other. Best practice will also be
central to our efforts in the coming months to support
and drive our Australian business. Increasingly, we are
working together across regions in new and better ways,
and we anticipate that this, together with our Group-wide
focus on deepening consumer understanding will have a
positive impact in 2012.
We take our responsibilities seriously, both to our
industry and to the local communities where we operate.
As a major player, we are committed to using our
influence to the benefit of the travel business as a whole,
and specifically the duty free sector. Partnership is very
important to us and we strive to create collaborative
relationships that bring advantages to all parties.
Throughout the year we again worked closely with our
Trinity Partners – the airports and the suppliers – to
strengthen the bonds between us and to guarantee that
customers will benefit from our continued partnership.
2. Pursue strong growth
This has been a landmark year for organic growth, with
many significant achievements. Chief among these was
the historic opening of the first Swiss Arrivals stores, in
Zurich and Geneva. These events were the culmination of
many years of working alongside legislators to help bring
about a change in the law. Now, for the first time,
travellers flying into Switzerland and Swiss residents
returning home can enjoy duty free privileges on arrival.
This is a fine example of how Nuance responds to
consumer demands for a more convenient shopping
experience by putting the customer at the heart of
everything we do.
In another ‘first’, we were proud to launch a radically new
duty free store concept, at Antalya in Turkey. Here, a
series of boutiques present our core categories as
individual departments, each with a distinctive design
and finish, and supported by leading brands. The
boutiques also feature a high level of interactive
technology – customers can use iPad-style tablets to
explore the products and experiences available. Not only
is this a breakthrough for our industry, it will also form the
basis for many of our future operations. For example,
towards the end of the year we incorporated many of the

The Nuance Group
Annual Review 2011
Winning respect
In 2011, many Nuance
achievements were again
recognised by our industry peers.
We were awarded a clutch of
accolades, including the
prestigious Duty Free News
International (DFNI) ‘Retailer of
the Year’ award for our
Hong Kong operation, which was
also named ‘Airport Retailer of the
Year’. Our expansive Sydney store
also took ‘Best New Shop’ in
these key global awards. In the
DFNI section for Travel Excellence
in Asia/Pacific, we won seven
different awards for our
operations in Singapore and
successes piloted at Antalya in the launch of new stateof-the-art
walk-through stores at our flagship Zurich
operation, which signalled a further evolution of these
exciting concepts.
Beyond Europe, we won a seven-year duty free/duty paid
contract at Orlando International Airport. Comprising two
stores and 711 square metres of retail space, this contract
will enable us to introduce exciting concepts into the
North American market. The stores are due to open by
January 2013.
In Asia, we added and refurbished almost 653 square
metres of space. In Singapore, we opened three Samsonite
shops and two new perfume and cosmetic stores, giving
us a total of 27 outlets spread across all four terminals. Our
team was also busy in Hong Kong, where we relocated and
redesigned our ‘Fortress’ electronics store and opened two
shops for airport staff.
Together, these achievements amounted to a very pleasing
extension of the portfolio, and more than outweighed the
minor setback at London City, where we were unsuccessful
in a contract re-tender, and Cairns, where we decided not
to participate in the re-tender.
As we enhance our reputation as a leading retailer, many
of our locations continue to be chosen to spearhead
global airport retail debuts for various product
categories. For example, we were selected to debut the
Tommy Hilfiger brand in our Hong Kong general
merchandise stores, the first time the brand has been
featured in this way in an Asian airport. In Australia, we
secured the exclusive distribution of Penfolds’ limited
edition 2008 Special Bin 620 Coonawarra Cabernet
Shiraz, reinforcing the successful partnership between
Australia’s leading winemaker and our organisation.
11
Hong Kong, and in Europe,
we also received a number of
category plaudits in the DFNI
Product Awards, with Antalya
being recognised as ‘Best New
Store – Liquor’ and our Swarovski
concept in Zurich taking ‘Best
New Store – Jewellery’.
As a company, we take real pride
in delivering great service to our
customers and are pleased that in
2011 many of our team members
were recognised for their efforts,
picking up individual and team
awards in Hong Kong and
Singapore for customer service
excellence and courtesy.
RS&D played its part in fulfilling our growth potential.
Together with several other notable achievements, the
business won a contract to supply and manage the duty
free store at Karachi Airport as well as in-flight contracts
for Lufthansa Worldshop (Swiss), and plans are
underway to establish a forward based logistics and
added value platform in Riga to manage operations in
Russia and the CIS states.
Acquisitions are the second pillar of our growth strategy
and we are constantly identifying, evaluating and,
where appropriate, pursuing opportunities to acquire
target organisations. At the end of January 2012, we
purchased a further 27% stake in our Turkish joint venture
with Net Holding A.S. This brings our ownership to 82%
with an option to buy the remaining 18% before March
2013. Our operations in Turkey have already been a
resounding success and the increase in our stake in the
joint venture gives us the possibility to capitalise on the
further potential in this exciting market.
Global strength with a local touch
With over 4,600 people serving 31 million customers
through 343 stores in 17 countries and territories, Nuance
is a truly global organisation. Yet whilst we share best
practice, drawing on our experiences in one market to
create profitable solutions in another, we also place high
value on local knowledge and expertise.
Our regions enjoy a high degree of autonomy and are
able to develop unique retail concepts that meet the
needs of local travellers, reflect local customs and are
aligned with the design and histories of local airports.
The result? Retail solutions that have a sense of place
and are tailored exactly to local circumstances but, at the
same time, are able to draw on all the skills and experience
of a company with worldwide presence and strengths.
Overview
Review of 2011
Financial statements

The Nuance Group
President &
Annual Review 2011 CEO’s report
12
Making history
The opening of the first-ever arrivals shops in
Switzerland, at Zurich and Geneva, on 1 June
marked a historic moment and the culmination
of more than a decade of efforts to extend the
benefits of duty free shopping to both travellers
and returning residents. We hope to develop this
concept across our portfolio and further drive
sales growth by providing travellers with retail
opportunities at every step of their journey.
We take a similar approach to the ways in which
we support communities, where our corporate social
responsibility activities are shaped to match local needs
rather than following a top-down, one-size-fits-all
approach.
Looking ahead
These are challenging days for many of the world’s
economies. The problems in Europe, particularly in
the Eurozone, have been well documented and those
outside the zone are also experiencing negative issues –
some, like Switzerland, because of the strength of its
currency and others, such as the UK, because of its
economic circumstances. Six months ago, many analysts
forecast that Asia would also lose momentum, but in fact
the continent’s major economies have held up better than
expected. Overall, growth is slowing worldwide and
although our global presence and diversification across a
broad set of geographies minimises our exposure to any
one particular market, many are likely to be softer in the
short-term.
However, ours is a long-term business and the
fundamentals remain strong. As ever, our performance
will be impacted by our ability to renew existing
contracts, win new ones and continue to break
new ground by creating innovative concepts that
truly put the customer at the centre of the business.
In Australia, our efforts to do so could be further
impacted by legislation which is posing an ongoing risk
to our performance.
In 2011 we invested over CHF 30 million in growth
initiatives and this level of investment is set to continue.
Specifically, we will be introducing our boutique concept,
together with four new specialty stores, at Lisbon,
refurbishing our assets at Antalya Terminal 2, expanding
our flagship Zurich duty free offer and completing the
build-out of our new location in Las Vegas, among many
other activities.
At the time of going to print (April 2012), we are awaiting
the outcome of three tender submissions for core
licences at Hong Kong International Airport. The strength
of our decade-long partnership and knowledge of the
local market have combined to help us build an enviable
retail operation at this key Asian hub. We are cautiously
optimistic that our level of expertise will secure a positive
outcome and enable us to introduce a number of new
concepts and innovations in the year ahead.
Our ability to attract and retain high quality people –
helping talented individuals do their best work – is the
key to our ambitions. No strategy will succeed without
the support and passion of the people on the ground.
At Nuance, we are fortunate to have teams right across
the business who work tirelessly and with great expertise
to turn our plans into reality. Privileged to lead and be
part of such a team, I thank all of our people for their
tremendous efforts over the past 12 months – and I look
forward with confidence to seeing our efforts bear more
fruit in 2012.
Roberto Graziani
President & CEO
April 2012

The Nuance Group
Annual Review 2011 Our strategy in action
W e are working hard to
continually improve our
customers’ experience
Never complacent, we constantly seek new and
better ways to give customers more reasons to shop
with us. The following pages highlight some of the
many ways in which we achieved this during the last
12 months.
13
Financial statements Review of 2011 Overview

The Nuance Group
Annual Review 2011
Showcasing
brands
Working with the best
Our strategy in action
Our stores are the natural home for
many of the world’s most powerful and
iconic brands. Through groundbreaking
initiatives and carefully targeted events,
we showcase these brands to the benefit
of customers, our business and of course
the brands themselves.
In Australia, we are successfully leveraging the
wealth of local wines, food products and iconic
brands available in each of our locations. In
December, we secured the exclusive distribution
of Penfolds’ limited edition 2008 Special Bin 620
Coonawarra Cabernet Shiraz in our stores,
reinforcing our successful partnership with this
top winemaker and restating our position as
the country’s leading seller of Penfolds’ premium
wines in its home market.
14

The Nuance Group
Annual Review 2011
Refreshing and expanding
our presence
30+
15
Creating unique experiences
We developed a programme of ‘bespoke’
and unique customer experiences in our stores
throughout the year. These events encompassed
all product categories, ranging from interactive
showcases in Hong Kong with leading skincare
brands to the ‘festive market’ in our Zurich duty free
store, as well as spearheading numerous product
exclusives and ‘firsts’, such as the Indian market
launch for Johnnie Walker Platinum and Smirnoff
Gold in our Bangalore shop. These are just a few
of the exclusive initiatives that we brought to our
customers across the globe in 2011, with many
more planned for 2012.
We operate in a fast-changing environment and
work hard to create and maintain a relevant, lively and
growing presence in all our global markets. Every year
we open many new stores and undertake extensive
refurbishment work, and 2011 was no different. During
the year we opened or refurbished over 30 stores
across our portfolio, creating modern, exciting and
innovative retail environments to ensure we provide
the perfect platform for the multitude of top brands
in our stores.
Financial statements Review of 2011 Overview Overview

The Nuance Group
Annual Review 2011
Building our
business
Our strategy in action
During the year we continued to lay the
foundations for future success, ensuring
that we have the financial stability,
organisational structure and great human
resources we need to maintain our record
of growth and profitability.
Investing in our future
16
Our business depends on our people. They are the
single most important reason behind our success
to date and the greatest cause for our confidence
in the future. We strive to attract and retain the high
quality team members that our business needs –
and to support them with training programmes and
opportunities which enable them to make effective
contributions whilst also enjoying full and rewarding
careers. Whether they are on the shop floor, managing
teams or departments, we give them the tools they
need to ensure that we continue to deliver at every
level of our business and are able to respond to the
changing demands of our dynamic industry.

The Nuance Group
Annual Review 2011
Supporting our
growth plans
+27%
At the end of January 2012, we
reinforced our commitment to our
Turkish business by purchasing a further
27% stake in our Turkish joint venture
with Net Holding A.S. Our operations in
this location continue to be a resounding
success and our increased stake (82%)
gives us the possibility of capitalising on
the further potential in this exciting and
dynamic region in the years to come.
Sharpening our focus
In February, the conclusion of PAI Partners’
purchase of Stefanel’s 50% share in Nuance
saw us welcome a new shareholder and
co-owner of the Group alongside GECOS,
bringing a renewed focus on organic growth
and acquisitions.
Reaping the rewards
of change
We evolve our organisation to meet the challenges
of the changing commercial landscape. In 2011,
we successfully integrated our Hong Kong and
Singapore ventures to further capitalise on the
opportunities in Asia. The integration has already
delivered significant benefits over the past year.
It has provided fresh impetus to what was already
a solid business, helping us further leverage our
Asian airport operations and harness our collective
experience to fully maximise business efficiencies
and prospects across the wider region.
17
Financial statements Review of 2011 Overview

The Nuance Group
Annual Review 2011
Extending
our reach
Our strategy in action
We operate through 343 shops at 59
locations in 17 countries and territories
– and we are constantly looking to
extend our offer in existing locations,
new airports and regions.
Inspiring success
in our heartland
Following the extension of our contract
at Zurich Airport in 2010, we completed
a number of significant developments at
our flagship operation. This included the
historic opening of the first Swiss Arrivals
Duty Free Stores – we opened simultaneously
at Geneva too – as well as adding new
concepts for Lindt, Bally, Burberry and
Swarovski. In early December, we also
debuted two next-generation walk-through
stores, marking a huge step forward in shop
layout. Over 2,000 square metres of floor
space is now dedicated to duty free shopping
on both levels of the concourse.
18

The Nuance Group
Annual Review 2011
Looking ahead
We believe in the value of a long-term
approach. To complement our extensive
global airport shop portfolio, we continue
to invest in and build a number of areas
across our business that we will develop
in the years ahead. For example, our
flourishing Retail Services & Distribution
(RS&D) division concluded several key
agreements last year, including the supply
and management of the new Duty Free
departure store at Karachi Airport, in
Developing our US focus
In North America, we have been building our
presence for 30 years and remain focused on
developing and expanding our reach across
the continent.
In 2010 we were awarded a 15-year contract
extension at Las Vegas’ McCarran International
Airport. Now we are building on that success
with a further investment and will add an
additional 1,100 square metres of retail space
at the new Terminal 3 when it opens in June
2012. When complete, it will offer one of the
largest duty free stores in the country and
showcase an extensive product range, as well
as several exciting retail concepts new to the
American market.
partnership with Zainab UK. It also grew
our in-flight sales channel, with the start
of a number of new contracts, including
Lufthansa Worldshop to supply all
core categories listed on board Swiss
International Air Lines. In addition, RS&D
plays an important role for the Group by
spearheading our entry into new markets
such as Russia and Eastern Europe,
securing a foothold and gaining valuable
market knowledge.
On the other side of the continent, our bid
for the Duty Free/Duty Paid concession
contract for Orlando International Airport
was recommended by the Airport Authority
and was formally approved in January 2012.
This seven-year contract covers two stores
totalling 711 square metres of retail space,
with plans well underway to unveil an improved
and expanded Duty Free/Duty Paid offer for
domestic and international travellers by the
second half of 2012. The addition of this,
our eighth North American airport location,
further strengthens our business and firmly
establishes us as one of the region’s leading
travel retail operators.
19
Financial statements Review of 2011 Overview

The Nuance Group
Annual Review 2011 Review of 2011
Our marketplace
Travel retail market overview
In 2011, the global Duty Free market continued its recent
upward trend and delivered a very strong performance,
with global sales reaching US$46 billion. Key drivers
included improved market conditions and rising
consumer confidence as well as strong passenger traffic
growth and a markedly enhanced performance in
emerging market regions such as China, Brazil and India.
Compared to last year, the travel retail market grew by
18%. This figure is to some extent distorted by the
weakening US Dollar, and real market growth closer
to 14% up on 2010.
With a 60% share, airports constitute by far the largest
channel within the industry, and generated some
US$28 billion in global sales in 2011, up 19% on the
previous year. This increase was achieved on the back
of robust performances from developing markets,
such as Asia and Latin America, together with improving
growth rates in Europe and North America. In Europe,
we saw growth driven primarily by Russian and Eastern
European travellers, as well as by a general recovery in
passenger movements, which had been impacted by
the Icelandic volcanic ash event. In the Oceanic region,
the strong AUS/NZD Dollar continues to negatively
impact PSR.
With future growth estimated to reach 8–10% per year,
it is clear that the industry is back on a positive track.
The bounce back experienced across all categories in
2010 continues apace, with all showing positive rises,
especially P&C, liquor and luxury goods.
In our view, international air travellers will reach three
billion by 2015, underlining the bright future faced
by the industry. Although air travel will continue to be
tested by global events and other issues, it continues to
demonstrate great resilience harnessed to an ability to
overcome potential uncertainties. Industry estimates are
for 5% growth per annum over the next three years.
Building on last year’s achievements
2010 was an excellent year for Nuance and we built further
on these foundations with an even better performance in
2011, with revenue of CHF 1,867.5 million and an EBITDA
of CHF 112 million (6% of revenue). These are the
Group’s best ever results, as we improved revenues and
profitability across most regions. The Nuance Group has
delivered great performance on par with the market,
with the exceptional performance of our airport
operations in Asia and North America helping to deliver
total growth of 8% 1 .
Dynamic growth across Asia resulted in an estimated
uplift of some 22% 1 for the region. However, our Asian
business performed better still, delivering 26% growth1 and achieving record revenue for the third year. This
robust performance was aided by the success of various
initiatives undertaken in the year, as well as strong first
year results in Hong Kong and Singapore. Similarly, in
North America, revenue grew by almost 12% 1 , compared
to growth of 9% 1 for the overall market.
In 2011, passenger traffic performed strongly across
Europe and this was reflected in revenue, where we
experienced an increase of 3% 1 . In some markets, such
as Turkey, where we benefited from the refurbishment
of our stores at Antalya’s T1, we recorded significant
growth versus 2010, as well as rising passenger
numbers and increased spending from Eastern and
Northern European travellers. However, despite growing
traveller numbers, the region is not without its challenges.
Strengthening currencies such as the Swiss franc and
Swedish krona continue to have a significant impact on
customer behaviour in these important markets.
Our Australian operation was negatively affected by the
strengthening of the Australian Dollar against major
currencies (vs. USD +12%,vs. NZD + 3%, vs EUR +7%).
However, with a range of initiatives improving passenger
spend rate, TNG Australia grew by 2%.
Whilst airport retail comprises over 93% of Group
revenues, the positive trend was also apparent in our
Retail Services & Distribution division, which achieved
almost 36% growth over the year.
1 Adjusted for currency – use 2010 exchange rate
20

The Nuance Group
Annual Review 2011
Revenue growth comparison by region
(2011 vs. 2010)
Global airport market Nuance1 % %
Global total 82 8
Asia retail channel 22 27
W. Europe retail channel 7 3
North America retail channel 9 12
Oceania retail channel 4 2
Global airport market are estimated figures and adjusted for currency.
Strong category performance
During the year, we achieved improved revenue across
all categories compared to 2010. Significant gains were
achieved in most categories, especially in P&C where we
grew by 12% 1 , mainly driven by strong revenue in Asia
(P&C +27% 1 ) and North America (P&C +17% 1 ). In addition,
liquor and tobacco grew by 8% 1 over the previous year.
1
Adjusted for currency – use 2010 exchange rate
2
Like-for-like weighted by comparable geography and category
Adjusted for currency – use 2010 exchange rate
Key industry trends
We have identified a number of trends that are likely
to affect the Duty Free market in the coming years.
These include:
– Legislation In western markets, regulators are
increasingly seeking to restrict or ban tobacco
displays and to impose standard packaging for
cigarettes.
– Branding The creation of distinct identities is
increasingly widespread, with many key industry
players investing in initiatives to build brand
recognition.
21
– Web 2.0 Increased investment and the
development of online channels are helping travel
retailers to improve consumer understanding and
interaction.
– Convenience Arrivals shopping is increasingly
popular as it satisfies demand for more flexibility,
with ‘shop on departure, collect on return’ options
influencing passenger purchasing decisions at their
home airports. Home delivery also seen as a
potential way to win customers.
Financial statements Review of 2011 Overview

The Nuance Group
Annual Review 2011 Our operations
Europe
Andrea Belardini
CEO The Nuance
Group Europe
Locations Shops
41 209
Sales area (square metres) Team members
36,065 2,029
“ Travel retail has reached a level of competitiveness
never experienced before – both from within the
industry and from alternative channels. Here in
Europe, we are witnessing saturation, so have taken
wide-ranging steps to ensure we continue to deliver
an excellent customer experience in this challenging
environment. This has translated into converting
effective customer understanding into innovative
store concepts, using dynamic marketing initiatives
and extending great service. This ensures our stores
continue to attract, engage and inspire travellers.”
Europe lies at the very heart of The Nuance Group’s
business. Not only is it where we started our retail operation
over 50 years ago, it is also where we operate some of our
most dynamic and groundbreaking outlets today.
As an industry, we have certainly faced a number of
challenges over the past two years, but with challenge
has come opportunity. We are pioneering a brand
new approach to travel retailing in Europe, using a new
‘roadmap’ designed to make our business stronger
and improve the satisfaction of our business partners,
suppliers and – of course – travelling customers.
The roadmap is based on seven key pillars that range
from customer understanding, category management
and pricing to promotions, marketing and
communications. All are central to our philosophy of
creating state-of-the-art passenger experiences with
a retail offer that optimises consumer spend, whilst
delivering value to our airport partners. A key output
has been the creation of a new duty free store blueprint,
featuring a series of new innovative Boutique concepts
and Speciality stores, driven by extensive consumer
research and deep customer understanding.
Over the past year, we have invested more than
CHF 17 million in refurbishing or developing almost
10,000 square metres of retail space across our
European portfolio, putting our customers back at
the very heart of the retail experience.
In 2011, we responded to the challenging retail
environment by developing and launching a number
of pioneering innovations using interactive technology
in-store – a global industry first. We believe that this
groundbreaking approach gives us a clear competitive
advantage in today’s testing market and ensures we
continue to lead the field in developing exciting store
concepts that appeal to today’s increasingly technologyaware
consumer.
The new 1,000 square metres walk-through store at
Antalya Airport’s T1 is a perfect example of this in action.
Launched in May, our new European Boutique concepts
incorporate touch-screen technology to help inform
and entertain travellers. This feature has successfully
encouraged more customer interaction and ultimately
played a key part in driving more business in what is
already one of our most profitable locations.
Following the extension of our contract at Zurich
Airport in 2010, we completed a number of significant
developments at our Swiss hub. This included the
historic opening of the first Swiss Arrivals Duty Free
Stores – we opened simultaneously at Geneva too – as
well as adding new concepts for Lindt, Swarovski and
Bally/Burberry. In early December, we also debuted two
next-generation walk-through stores at Zurich, marking
a huge step forward in shop layout. Situated directly
beyond the new centralised security control, over 2,000
square metres of floor space is now dedicated to duty
free shopping on both levels of the concourse. We have
also opened two new Gate Shops, allowing passengers
to make tax free purchases until shortly before take-off.
Elsewhere, we opened a range of core and specialty
shops at Toulouse-Blagnac Airport, launched a Sound &
Vision shop at Hamburg and also boosted our presence
in Portugal, with the opening of a new walk-through duty
free store at Lisbon in early 2012.
Operations at Zurich Airport
+50 years
22

The Nuance Group
Annual Review 2011
Specialty is a growing and key component in our overall
retail offer, and in 2011 we developed and rolled out a
number of new processes to help improve both buying
practices and the customer experience. We focused on
strengthening brand presence of key growth categories
such as sunglasses, leather goods, luxury fashion and
accessories, and developed exciting new store concepts
to showcase these products including the world’s first
Lindt concept store and our own Sun Catcher eyewear
store, both at Zurich. New concepts for Ralph Lauren,
Ermenegildo Zegna, Salvatore Ferragamo and
Montblanc will all feature in the further expansion at
Lisbon in 2012. In total, we have opened or refurbished
in excess of 20 stores in Zurich, Geneva, Toulouse,
Hamburg and Antalya over the past 12 months. The first
half of 2012 will see another 15 new or refurbished stores
at Lisbon, Zurich, Antalya and other European locations.
We tailor promotional activity and strategies to the
needs of our different target markets, and in many of
our stores have set aside highly visible zones for bespoke
activities. This approach lends itself to specific themes,
such as new products or seasonal events, as well as
offering an enhanced store experience such as tasting.
For example, we introduced dedicated tasting areas at
Antalya and Zurich this year, and these will be rolled out
to other locations in 2012.
Co-operation and partnership have again been key
themes of the year. We put several initiatives in place to
help drive sales in the increasingly challenging European
market, including our ‘Find it Cheaper’ campaign, which
saw us reduce the prices of over 100 best selling
products in our Swiss stores. We also reinforced our
commitment to value through our local ‘Best Price
Guarantee’, which applies to liquor, tobacco, perfume
and cosmetics products.
No store, no matter how good its strategy or location, will
flourish without good people. We take customer service
and our people very seriously, constantly investing in
training initiatives and equipping our team with a full range
of tools and resources to enable them to provide the
best, most knowledgeable service possible. In 2011, we
refreshed and refocused our highly effective Best Selling
training programme which enhances the selling capabilities
of our operational team members and now includes a
greater focus on customer understanding and service. Our
continued commitment and investment in these initiatives,
among many others, enables new and established team
members to further improve their sales skills and continue
to offer outstanding service to our customers.
Increase in retail space
+18%
Australia
Derek Larsen
CEO The Nuance
Group Australia
Locations Shops
6 24
Sales area (square metres) Team members
17,424 1,044
23
“ Building strong relationships with our airport and
supplier partners is pivotal to our success. We’re
working hard to ensure we continue to offer travellers
an exciting retail experience across our Australian
operation that combines the very best of international
brands and quality Australian products delivered in
an environment of operational excellence.”
The Nuance Group has enjoyed a 20-year presence in
Australia, where we operate tax and duty free stores
at all four international airport gateways, as well as a
consular outlet in Canberra. We are the country’s biggest
airport retailer, in terms of turnover and retail space, and
are firmly committed to building on our market-leading
position in this key region.
This year, 5.5 million customers purchased items at our
Australian stores, driven in part by an 18% increase in
retail space gained by the opening of our biggest duty
free store at Sydney Airport in 2010 and also our
spacious walk-through First Tax Free & Duty Free shop
at Melbourne Airport. We responded to consumer
demand and targeted identified passenger segments by
successfully adding specialty and electronics concepts
to our portfolio, including a TAG Heuer shop-in-shop and
Australia’s first ever Apple airport store, complementing
our ‘World of...’ core concepts. These initiatives,
Financial statements Review of 2011 Overview

The Nuance Group
Annual Review 2011 Our operations
combined with the generous promotional space in all
of our locations, have allowed us to run a year-round
programme of activity across the Australian business
in support of the latest product launches.
The appointment of Derek Larsen as CEO in autumn
2011 has led to a renewed focus on driving sales and
delivering customer value in Australia. We are now
building on that strong foundation, and drawing upon
our experience to deliver real innovation. We are also
bringing together our business intelligence and research
expertise to better understand important new and fastgrowing
customer segments such as Chinese and Asian
passengers and budget travellers. In order to meet their
needs, we are developing targeted initiatives in each
location which will optimise consumer spend and deliver
better value for our airport partners.
Across our global operation, we endeavour to introduce
a ‘sense of place’ in our stores and provide a blend of
international brands and local quality items which appeal
to domestic and international travellers. In Australia we
are successfully leveraging the wealth of local wines,
food products and iconic brands available in each of
our locations. For example, in December we secured the
exclusive distribution of Penfolds’ limited edition 2008
Special Bin 620 Coonawarra Cabernet Shiraz in
Australia. By offering this unique vintage through our
duty free stores, we reinforced the successful
partnership between Australia’s leading winemaker
and our own organisation, restating our position as the
country’s leading seller of Penfolds premium wines in
its home market.
The year was characterised by many other
achievements, including: exclusivity of Bombay Sapphire
East in the Australian market for a limited period;
showcasing one of only two bespoke luxury Martell
trunks in our Sydney store, in collaboration with Pernod
Ricard Travel Retail; and a high profile event featuring
world-famous cricketer Steve Waugh, appearing in-store
as a Johnnie Walker Blue Ambassador. These are just
some of the exclusive launches and initiatives that we
brought to the Australian duty free market in 2011, with
many more planned for 2012.
Square metres
to be added in 2012
+1,811
North
America
Richard Rendek
CEO The Nuance Group
North America
Locations Shops
7 35
Sales area (square metres) Team members
5,791 406
“ In 2011, we experienced greater stability across
the North American business, helped in part by
improved PSR and the emergence and growth of
new market segments. We look forward to the next
12 months when we introduce a number of new
exciting concepts that will ensure we continue to
deliver an outstanding retail experience that reflects
our commitment to excellence in quality, innovation
and service in this very key market.”
Our business in North America stretches across seven
airports in the USA and Canada, where the Company is
firmly established as one of the leading travel retailers,
after commencing operations there almost 30 years ago.
Over the past 12 months, the business has enjoyed a
boost in revenues across all locations with performance
up 16% 1 on 2010 and the relatively weak US Dollar
positively affecting passenger spend rates.
Following the completion of an extensive renovation of
our retail offer at Chicago’s O’Hare airport in December
2010 – where we added a new core category shop and
remodelled stores in Terminals 1, 2 and 3 – sales have
doubled as a result of the enhanced shopping
experience and wider product range.
1 Aggregated revenue growth from all airports consolidated at 100%
and adjusted for currency – use 2010 exchange rate
24

The Nuance Group
Annual Review 2011
Elsewhere, we focused on a number of key projects set
to land in 2012, with considerable work and preparation
taking place. In June, we will unveil a major expansion of
our Las Vegas operation when the new Terminal 3 at
McCarran International Airport opens, adding a further
1,100 square metres of retail space. When complete, it
will offer one of the largest duty free stores in the country
and showcase an extensive product range, as well as
several exciting retail concepts new to the American
market.
Towards the end of 2011, our bid for the Duty Free/Duty
Paid concession contract for Orlando International
Airport was recommended by the Airport Authority and
was formally approved in January 2012. This seven year
contract covers two stores, located in Airside 1 and
Airside 4 and totalling 711 square metres of retail space.
Plans are well underway to unveil an improved and
expanded Duty Free/Duty Paid offer for domestic and
international travellers by the second half of 2012.
The addition of this, our eighth North American airport
location, further strengthens our business and firmly
establishes us as one of the region’s leading travel
retail operators.
Asia
Alessandra Piovesana
Nuance-Watson
Managing Director Asia
Locations Shops
4 71
Sales area (square metres) Team members
14,669 929
“ This year, our operations across Asia have delivered
a standout performance, which whilst reflective of
the positive economic conditions across the region,
was aided by our own commitment to further
develop and add value to our retail offer. This has
without a doubt helped us secure another year of
tremendous growth.”
Secured for Singapore P&C
+3.5 years
25
In Asia, we operate a joint venture in partnership with
A.S. Watson under the Nuance-Watson banner, running
airport retail operations at Hong Kong, Singapore and
Zhuhai, China, as well as the leading department store
at the well-known Venetian resort in Macau.
This year, our performance continued its upward trend,
with PSR outpacing passenger growth and leading to
record sales for the second consecutive year. This robust
performance was helped by the successful integration
of our Hong Kong and Singapore ventures at the end
of 2010, which enabled us to further leverage our Asian
airport operations and harness this collective experience
to fully maximise business prospects across the markets
over the course of the year.
In 2011, we marked a decade of operations at Singapore
Changi Airport, successfully negotiating a contract
extension for the core P&C concession, as well as
expanding and enhancing our portfolio. This included
three Samsonite shops and two new P&C stores, taking
our offer to 27 stores stretched across all four terminals.
At Hong Kong, we relocated and redesigned our ‘Fortress’
electronic shop at Terminal 2 and opened two shops for
airport staff communities. In November, we were also
pleased to be chosen to debut the Tommy Hilfiger brand
in our General Merchandise stores – the first in an Asian
airport. In total, we added and refurbished close to 653
square metres of space at the key Asian hubs.
Since establishing our Asian operations in 1998, we have
built a reputation as a leading retailer across the region.
Throughout the year, we brought a number of fragrance
exclusives and ‘firsts’ to the continent’s airport retail
market, supported by a programme of regular customer
experience events. For example, we partnered with
leading beauty, electronics and general merchandise
brands, to offer customers a truly innovative offer that
included advice from expert specialists. Both Hong Kong
and Singapore were chosen to spearhead several global
airport retail debuts for various product categories.
These activities and initiatives all helped reinforce our
reputation and commitment to continuing to deliver a
superior retail experience for consumers.
In 2011, we were pleased to retain the P&C concession
at Changi Airport for a further 3.5 years. At Hong Kong,
we re-tendered our two core licences – for P&C and
Airside General Merchandise – and also participated in
the Duty Free & Tobacco licence tender. At the time of
going to print (April 2012), we are awaiting the outcome
of these tenders.
Financial statements Review of 2011 Overview

The Nuance Group
Annual Review 2011 Our operations
We also continued to support a number of special
charitable initiatives in the region, earning the 2011
Caring Company Award from the Hong Kong Council
of Social Service for the fifth consecutive year. This was
made possible through the tremendous efforts of our
team members who deserve congratulations for the
way in which they are helping to make a difference in
communities at home and overseas through their active
involvement in worthwhile causes.
In recognition of Nuance-Watson’s outstanding operations
in the region, we were awarded a clutch of further
accolades in 2011, including DFNI Global Travel Retailer of
the Year, Airport Travel Retailer of the Year and DFNI Asia
Pacific Travel Retailer of the Year, as well as also winning a
number of category plaudits. As a company, we take real
pride in delivering great service to our customers and are
pleased that many of our team members were recognised
for their efforts in 2011, picking up individual and team
awards in the annual Hong Kong and Singapore
Customer Service Excellence awards.
India
Locations Shops
1 4
Sales area (square metres) Team members
1,852 206
“ Over the past four years we have focused on
building a solid platform to enable us to expand
across the wider region. As demand for travel to and
from India grows and disposable incomes rise and
spread to a greater proportion of the population, we
are ideally positioned to further grow our business
in this dynamic market.”
Carlo Bernasconi,
CEO Retail Services & Distribution
PSR growth
+10%
Since entering the Indian market in 2008, we have rapidly
gained a solid understanding of the region. Whilst
operations are still relatively modest, we believe there is
great potential for further growth across the sub-continent,
both from an airport retail and supply perspective.
In 2011, the business returned a solid and profitable
performance, achieving double-digit growth. Despite a
national slowdown in the second half of the year, driven
by events in the US economy, we nevertheless saw a
modest increase in passenger numbers. We also passed
a significant milestone during the year and have now
served over one million customers since beginning
operations in India. Our PSR rose by 15% over the
previous year, due to a series of events-based point-ofsale
promotions and marketing activities which positioned
Bangalore Airport as a great value shopping destination,
compared to other airports across the wider region.
In fact, in December 2011 we recorded our highest ever
monthly sales, which ensured we moved into 2012 with
a great sense of optimism and achievement.
Throughout the year, we continued to enhance our
offering with a number of innovative promotions in
association with key partners, including the market
launches of Johnnie Walker Platinum and Smirnoff Gold.
These initiatives generated positive results, and we have
further partnerships planned for 2012.
As a Group, our global expertise is reinforced by local
knowledge and application. We have the skills to develop
unique retail concepts that reflect individual airports,
specific market segments and consumer profiles.
We also make sure we constantly evolve and develop
our retail offer to match the passenger profiles at any
given location and provide exciting retail concepts for
our customers. Previously, we introduced a number of
exciting retail ‘firsts’ to India, such as the walk-in humidor
and Lindt-trained Chocolatier concepts, both of which
have been immensely popular with Indian travellers
and have been responsible for a marked uplift in sales.
In early 2012, we will continue this strategy with the
launch of an exclusive Single Malt Boutique at Bangalore
International Airport. Developed specifically to cater to
the Indian whisky connoisseur, the new Boutique will
feature more than 35 international brands, and will be
supported by a programme of regular tasting events.
First introduced in 2010, these events have proved very
popular and have resulted in visible sales growth.
26

The Nuance Group
Annual Review 2011
The rapid pace of development in the aviation
infrastructure in India is expected to generate a
significant increase in passenger numbers which will in
turn give rise to further expansion and airport development.
Accordingly, we are very optimistic about the future
potential of our business in India and are working closely
with a number of airport authorities to exploit all
opportunities that come to market.
Retail
Services &
Distribution
Carlo Bernasconi,
CEO Retail Services & Distribution
Locations Employees
Distribution services
across the Nuance
network
27
“ In 2011, our Retail Services & Distribution business
has continued on its trend of positive growth, so it is
clear that our ability to utilise our industry expertise
and offer our customers a flexible tailor-made
approach is succeeding. We remain committed to
investing and developing this key business area and
are confident that there is considerable capacity for
further expansion in the years to come.”
Our Retail Services & Distribution (RS&D) operation
was formed in 2007 to offer independent travel retail
operators and airlines a wide assortment of core
category and selected specialty goods. By utilising
the full strength of the Group, RS&D has successfully
harnessed our best practice expertise in product
assortment, category management, marketing and
training for our clients, extending the benefits of our
retail knowledge and innovation.
RS&D continued to flourish in 2011, growing by 27%
over the previous year, with an increase in EBIT of 44%.
Over the past 12 months, we focused on a number of
key areas, strengthening our partnerships and business
27
in Pakistan, Russia and Eastern Europe, and expanding
across almost all channels – the exception being airline
supply in the UK, which was the result of the difficult
economic environment in this market.
Over the year, we secured a number of new contracts,
including the supply and management of the new Duty
Free departure store at Karachi Airport, in partnership
with Zainab UK. We also continued to focus on
developing our in-flight sales channel. This was boosted
by existing business with carriers such as Edelweiss
Airline and the start of a number of new contracts,
including Lufthansa Worldshop, to supply all core
categories listed on board Swiss International Air Lines.
In addition to this, we won a full concession contract with
Hello Airline and a supply contract from Southend
Airport. In India, our operation also began providing
goods for in-flight sales on board IndiGo’s new
international routes. Together, these contracts have
helped generate solid growth of the business.
Ocean Trading, our UK-based distribution company,
built on last year’s impressive performance by once
again achieving strong growth. In order to support
expansion and to further increase supply chain quality,
we have taken full operational responsibility of our UK
distribution centre, which services more than 120 third
party customers as well as our own UK retail operations.
We also plan to set up a forward based logistics and
added value platform in Riga, Latvia, to manage supply
into Russia and the CIS states, gaining further competitive
advantage in this strategically important region.
Looking forward, a significant degree of planning and
preparation has been undertaken in readiness for a number
of key developments planned for the year ahead. These
include further expansion in Pakistan, with the opening of
an Arrivals store at Karachi Airport and a Departures store
at Lahore Airport, as well as extended operations in
the Middle East region with our partner Zainab UK.
We recognise the growth potential in the Russian and
CIS airport travel retail market and are actively looking
to increase our existing distribution business, as well as
sourcing appropriate retail development opportunities.
We also anticipate providing distribution in the Asia region
in close collaboration with our existing operations in Hong
Kong, Singapore and Australia.
Performance improvement
+27%
Financial statements Review of 2011 Overview

The Nuance Group
Annual Review 2011 Review of 2011
Our people
Employees Nationalities
4,663 64
“ A great business is founded on great people.
Attracting, developing and retaining talent is vital to
our long-term growth. This commitment to our team
members means that they continue to deliver great
service and a fantastic retail experience for our
customers.”
Recruitment and development
With the travel retail industry set to double in the next 10
years, it is important that we have the resources in place
to capitalise on these opportunities. Attracting talent
remains a key focus for Nuance, so in 2011 we employed
a variety of different recruitment channels to maximise
our exposure and appeal to potential employees.
We also further improved the recruitment process by
aligning the required role capabilities with our core
behavioural requirements, thereby creating a more
simple and cohesive recruitment and development
journey for new team members.
For existing team members, we improved our
procedures and processes for reviews, further
strengthening the link between performance and reward.
In addition, we also introduced a core competency
based approach to skills and behaviour assessment,
and this now forms the backbone of an individual’s
development journey.
We are committed to promoting from within and strive to
offer team members internal career progression across
departments, as well as job opportunities throughout our
global business. In 2011, we were pleased to offer a
number of people from our management talent pool the
chance to develop and continue to build their careers
within the Group through global assignments, Groupwide
projects and job exchanges.
The Nuance Development Journey
As the public face of Nuance, our people are absolutely
pivotal to our success. We have developed a full range of
tools and resources to enable them to operate effectively.
This ensures we deliver at every level of our business
and are able to respond to the changing demands of
our dynamic industry.
By providing meaningful development opportunities, as
well as tools and resources, we help all our people to grow
and excel in their respective roles, fulfilling their full potential.
Each person follows an individual development plan to help
them move forward in their career with us. In 2011, we
continued to develop several key schemes, including:
– Best Selling training module: In response to
feedback from participants, we further improved our
highly effective Best Selling training programme,
which enhances and optimises the selling
capabilities of operational team members across our
global business. In 2012, we will roll out an updated
module with a greater focus on customer
understanding and service. Not only will this increase
the spirit of belonging, but also place further
emphasis on developing product knowledge,
ensuring that team members further boost their
sales skills and continue to offer outstanding service
to customers.
– Best Coaching & Coaching in Action: Specifically
designed to support the Best Selling approach,
these modules help build management skills and
improve personal coaching abilities, resulting in more
effective team development.
– Functional training: Following the completion of an
international analysis on skills requirements across
operational roles, we have developed a new suite of
functional training initiatives to boost technical skills.
Learning and Development Journey
Executives
Direct Report to
Executives
Senior Managers
First Line Managers
Team members
Best Selling
Personal
effectiveness
Best
coaching
Effective
coaching
Personal effectiveness Team effectiveness
28
Coaching
in action

The Nuance Group
Annual Review 2011
The Bigger Picture
Newsletter for Nuance team members
Roberto Graziani
President & CEO
We begin 2012 on
a strong and stable
footing
Welcome to the
latest edition of
The Bigger Picture
Team member communication
and engagement
With a global operation spread across four continents,
it is important that we actively engage and communicate
clearly with our team members across the business
through open two-way dialogue. During the year, we
introduced several new internal communications platforms
and initiatives, ranging from regular newsletters at
corporate and regional level to local team member forums.
We plan to invest further in this area, with a number of new
initiatives planned for roll out in the year ahead.
The satisfaction and engagement of our team members
is very important to us. We strive to give a voice to all
employees through regular staff surveys in order to better
understand how people feel about Nuance and help us
develop an appropriate response. In early 2011, we
gathered feedback from employees in Europe, Australia,
North America and India, and have developed a number
of local action plans to help us further improve the ways in
which we meet the expectations of our employees.
As 2011 draws to a close, I’d like to take a few moments to
reflect on the past 12 months. What a year it’s been!
Challenging, tiring, and at times I’m sure frustrating, but I do
hope you agree with me that it’s all been worth it. We can be
proud of what we have achieved this year.
In 2011, we have launched innovative store concepts, received
numerous industry accolades and strengthened our presence in
our core markets, ensuring that we move forward into 2012 on
a solid footing with much to look forward to. But it doesn’t stop
there, with significant developments in North America and
Europe set to land in the first half of 2012, we have some busy
times ahead. Hopefully this will also be the case in Hong Kong,
where after a challenging period in preparing the core category
tenders, we are very excited about what we could add to our
already superb offer should we successfully retain this business.
There has also been much to celebrate, from the 50 year
anniversary of the opening of our first airport shop to the historic
debut of Switzerland’s first Arrival stores, are just a few of the
key events in our global highlights of 2011.
By the close of this year, we will have further improved our
financial performance, helped in part by the positive results of
2010, which enabled us to continue on our path of steady growth
and investments for the future. Whilst our industry will no doubt
continue to be tested in the year ahead, we do begin 2012 in on
a strong and stable footing. With the renewed focus on growth,
we are well placed to develop our international portfolio as we
continue to build a world-class innovative retailing business.
I am proud and grateful for what we have achieved, and I thank
you for your ongoing efforts, support and professionalism. Let
me end by wishing you and your loved ones a Merry Christmas,
a peaceful and relaxing holidays and a happy and prosperous
New Year!
With Seasons Greetings,
December 2011
Contents
2 2011 Highlights
3 Launching new
walk-through
Duty Free stores
at Zurich
4 Getting to
know…
Derek Larsen,
CEO Nuance
Australia
5 Our news
6 A day in the life
of…Esther Luk,
Senior Manager,
Retail Operations
& Administration,
Hong Kong
7 Congratulations
and celebrations
Connect
European Newsletter
Andrea Belardini CEO Europe
Welcome
2011 is coming to an end.
The year of our 50th
Anniversary promised to
be a landmark year and
we have not been
disappointed.
The new European Duty Free Store concept,
has now opened also in our home base of
Zurich. We have also seen a number of new
concepts rolled out in Specialty including
sunglasses, gifting and toys (center parks). A
number of on-going key projects and an
organisational structure that is further
strengthening are just a few of our recent
achievements.
We enter the New Year with a bigger tool
box. Yet, as we can clearly see, the year
ahead once more, appears challenging due
to the economic climate, lower consumer
confidence and increased competition.
Life is like a mirror,
we get the
best results when
we smile at it Unknown author
We enter the New Year with a bigger tool box.
Yet, as we can clearly see, the year ahead once
more, appears challenging due to the economic
climate, lower consumer confidence and
increased competition.
More than ever we are switching from a business
of “selling” to our customers, to a business of
“gaining” them. No doubt the redesigned
training program that will be launched before
March will be a welcome addition to our tool
box. However I am convinced that the strongest
tool is still within us…and it is as simple as a
smile. Smiling costs nothing and gives a lot, it is
contagious and is the gift that keeps on
giving…It’s so obvious how good it feels to share
a smile that sometimes we tend to forget.
Let me wish you and your families a Happy New
Year full of serenity and success and of course,
full of smiles.
IN THIS ISSUE CEO Europe Welcome | Business Update p2 | Focus on…p3 | Marketing Initiatives… p4 | The Opinion of... p5
Congratulations and Celebrations p6 | Getting to know me... p7 | A day in the life of… p7 | Question & Answer p8
AUTUMN / WINTER 2011
Time to Give – We Care, We Share, Hong Kong
team members volunteer service programme
29
Rewarding great service
We take pride in delivering great service to our
customers and are pleased that many of our team
members were recognised for their efforts in 2011.
Supporting our communities
at home and overseas
In 2011, we continued our commitment to support a
number of very special initiatives and causes, both close
to our locations and also elsewhere. All these initiatives
are close to our hearts and made possible through
the tremendous efforts of our team members.
We congratulate them for the way in which they are
helping to make a difference.
UK team member activities supporting those
with life threatening illnesses
Financial statements Review of 2011 Overview

The Nuance Group
Annual Review 2011 Financial statements
30
Consolidated financial statements
Summarised consolidated income statement
For the year ended 31 December 2011
2011 2010 Change
CHF ’000 CHF ’000 %
Revenue 1,867,534 1,871,861 -0.2
EBITDA 111,740 97,880 +14.2
Percentage of sales 6.0% 5.2%
EBIT 82,725 61,550 +34.4
Percentage of sales 4.4% 3.3%
Net profit for the year 50,901 33,484 +52.0
Summarised consolidated balance sheet
As at 31 December 2011
2011
2010 Change
CHF ’000 CHF ’000 %
Assets
Non-current assets 386,336 401,141 -3.7%
Current assets 395,767 352,436 12.3%
Assets classified as held for sale – 405
Total assets 782,103 753,982 3.7%
Equity and liabilities
Non-current liabilities (without Shareholder loans) 165,091 126,608 30.4%
Current liabilities (without Shareholder loans) 374,221 425,758 -12.1%
Liabilities classified as held for sale – 337
Total liabilities 539,312 552,703 -2.4%
Total equity (including Shareholder loans) 242,791 201,791 20.3%
Total shareholders’ equity and liabilities 782,103 753,982 3.7%

The Nuance Group
Annual Review 2011
Revenue breakdown
Revenue by region
-0.2%
Consolidated revenue
CHF ‘000
2011
2010
2009
2008
c
b
d
%
a. Europe 46.0
b. Australia 27.8
c. Asia 19.6
d. North America 6.6
Five year record
1,867,534 2011
1,871,861
1,581,977
1,718,065
2007 1,763,779
a
Revenue by channel Revenue by category
+14.2%
Consolidated EBITDA
CHF ‘000
2010
2009
2008
b cd
97,880
56,486
75,384
2007 69,295
a
%
a. Airports 93.3
b. Wholesale and other channels 4.6
c. Downtown, hotels and resorts 1.9
d. Inflight 0.2
111,740 2011
+34.4%
Consolidated EBIT
CHF ‘000
2010
2009
2008
g h
f
e
d
c
82,725
61,550
26,687
49,854
2007 43,555
b
31
%
a. Perfumes and cosmetics 37.6
b. Liquor 18.9
c. Tobacco 13.8
d. Confectionery 7.7
e. Fashion 7.0
f. Accessories 5.7
g. Electronics 5.4
h. Souvenirs and other goods 3.9
a
Review of 2011 Overview
Financial statements

The Nuance Group
Annual Review 2011 32
Executive management
1
2
3
4
5
6
7
8
9

The Nuance Group
Annual Review 2011
1. Andreas Rudolf
Chief Financial Officer
Andreas was appointed as the Group’s Chief Financial Officer
in January 2012, joining from EGL, where he held the position
as CFO. He brings two decades of finance experience and
a wealth of knowledge gathered across a number of highly
competitive industries. Prior to EGL Andreas spent 10 years
at the Siemens Group, where he held roles such as Head
of Group Finance & Controlling in the Siemens Building
Technologies division and Co-Project Manager within the
international Siemens Shared Services project. He began his
professional career as an auditor and consultant with Coopers
& Lybrand, and holds a doctoral thesis from the University of
Basel, as well as a Degree in Business Administration from the
University of Zurich.
2. Richard Rendek
CEO The Nuance Group North America
Richard joined The Nuance Group in 2003 as CFO for the
Company’s North American operations, and was promoted to
CEO six months later. He has a proven track record in finance,
economics and management in multinational corporations, with
over 20 years of retail experience in the North American market,
most recently with Hachette Distribution Services and Loblaw
Companies. Richard obtained his Chartered Accountancy in
1991 with KPMG and has passed the Canadian Securities exam.
3. Andrea Belardini
CEO The Nuance Group Europe
Andrea was appointed as CEO for Nuance’s European
operations in July 2009. Previously, he spent nine years at
Aeroporti di Roma (ADR), where he held a number of senior
roles across the business including EVP Commercial, EVP
of Strategy and Development and Managing Director of ADR
International Airports South Africa. Prior to this, Andrea worked
for the Accor Group’s Carlson Wagonlit Travel division where
he became Vice President of Southern Europe operations.
He graduated with Honours (Magna cum Laude) in Business
and Economics from the University of Rome ‘La Sapienza’.
4. Francesco Cammarano
EVP Information Technology & Logistics
Francesco joined The Nuance Group as Chief Information
Officer in 1997 and was appointed EVP Information Technology
& Logistics later that year. He began his career as an IT-
Consultant and project leader in Switzerland and later joined
Bally International Ltd as Information System Coordinator,
where he was promoted to the holding company’s Head of
Information Systems. Francesco also spent four years in
Japan as Chief Information Officer at Nihon Siber Hegner
Group. He holds a Degree in Electrical Engineering &
Information Technology from the Swiss Federal Polytechnic
in Zürich, as well as a Degree in Quantitative Economics and
Finance from the University of St. Gallen.
5. Elisa Crotti
EVP Business Analysis & Strategy
Elisa was appointed as EVP Business Analysis & Strategy
for The Nuance Group in January 2011. Previously she was
a Principal at The Boston Consulting Group, where she spent
more than a decade working with and advising leading travel
retailers, international food retailers, department stores,
specialty chains and consumer product producers on a range
of areas such as strategy and business planning, category
management, organisational structure, sales & marketing and
M&A. Elisa graduated from Politecnico di Milano with a Masters
in Business and Process Engineering, and also holds an MBA
from INSEAD, France/Singapore.
33
6. Alessandra Piovesana Nuance-Watson
Managing Director Asia
Alessandra has been managing Nuance-Watson since 1999,
and joined the Company from the LVMH Group, where she
was responsible for Guerlain across the North Asia Pacific
region. Bringing more than 25 years’ industry experience
to her role, she began her career in Europe with Procter &
Gamble, Johnson & Johnson and the Revlon Group in brand
management and marketing, before moving to L’Oreal Group
Asia for 10 years, where she held roles as Marketing Director,
General Manager and Division General Manager. Alessandra has
a Degree in Applied Economics from the University of Leuven,
Belgium and also holds an MBA in International Marketing and
Finance from the University of Oregon, USA.
7. Carlo Bernasconi
CEO Retail Services & Distribution
Carlo joined The Nuance Group in 1999 and was appointed
CEO Retail Services & Distribution in 2006. Prior to this, he held
a number of senior roles within the Company, including EVP
Business Development & Strategic Marketing and CEO
of Nuance’s European operations. Carlo has extensive
management experience across production, buying, logistics
and sales within the consumer goods industry, and has worked
for a range of international companies such as Swatch and Bally.
He has also passed a commercial apprenticeship and holds
a Degree in Logistics.
8. Roberto Graziani
President & CEO
Roberto was appointed as President & CEO of The Nuance
Group in 2004. Prior to this, he was CFO at Gruppo PAM SpA,
a subsidiary of Nuance’s parent company GECOS. Having
led the successful acquisition of Nuance in 2002, he was
subsequently appointed to the Nuance Board of Directors and
related company Committees. Roberto began his career in
international banking, after serving as an officer in the Arma dei
carabinieri, the national gendarmerie of Italy. He graduated from
Venice University with a Degree in Business and Economics,
and also holds an MBA in International Finance from Clemson
University, USA.
9. Derek Larsen
CEO The Nuance Group
Australia & New Zealand
Derek joined as CEO for the Company’s Australian & New
Zealand operations in August 2011. A well-known figure in
the region’s airport retail industry, he brings over 20 years’
experience to the position, most recently as General Manager
for Sydney Airport’s retail operations where he was responsible
for the development of the new T1. Derek has held a number
of senior executive roles across the wider Asia Pacific region,
having worked in Hong Kong, Indonesia and Japan. Since
returning to his native Australia, he has worked for major retail
corporations such as AMP, Colonial First State and Queensland
Investment Corporation. He holds a Graduate Diploma in
Finance and Investment and a PPL(H) in aviation.
Overview
Review of 2011
Financial statements

The Nuance Group
Annual Review 2011 34
Shareholders, Board
and Committees
Our shareholders
The Nuance Group is jointly and equally
owned by GECOS SpA and PAI Partners.
GECOS S.p.A.
GECOS through its wholly owned subsidiary Gruppo
PAM, is one of the leaders in Italian food retailing, with
an annual turnover of some €2.4 billion and 9,800
employees. The Company was founded in Venice in
1958 as a supermarket operator and has grown over
the years both organically and through acquisitions;
it has also expanded into further segments of the
food retailing market such as hypermarkets and hard
discount. The group also controls a food and beverage
business. For further information: www.gruppopam.it
PAI Partners
PAI Partners is a leading European private equity firm
with offices in Paris, Copenhagen, London, Luxembourg,
Madrid, Milan and Munich. PAI manages and advises
dedicated buyout funds with an aggregate equity value
of €7 billion. Since 1998, PAI has completed 41 LBO
transactions in nine European countries, representing
over €35 billion in transaction value. PAI is characterised
by its operational approach to ownership combined with
industrial and sector expertise. PAI provides portfolio
companies with the financial and strategic support
required to pursue their development and enhance
strategic value creation. For further information:
www.paipartners.com

The Nuance Group
Annual Review 2011
Board Members
Josef A. Felder, Chairman
Josef A. Felder is also: Board Member Careal Holding
AG, Zürich; Board Member AMAG Automobil-und
Motoren AG, Zürich; Board Member Luzerner
Kantonalbank AG; Board Member Victoria Jungfrau
Collection AG, Interlaken; Board Member Edelweiss
Air AG, Zürich; Board Member Zingg-Lamprecht AG,
Zürich; Board Member HTC Corp., Taipei; Chairman
Foundation Pro Juventute, Zürich; Chairman
Flaschenpost Services AG, Zürich.
Vittorio Levi, Vice-Chairman
Vittorio Levi is also: Board Member Group Coin S.p.A.;
Chairman Panini S.p.A.
Arturo Bastianello, Board Member
Arturo Bastianello is also: CEO GECOS S.p.A.;
Chairman and CEO Gruppo PAM S.p.A.
Salvatore Dina, Board Member
(elected 28 September 2011)
Salvatore Dina is also: Commercial Director and Vice
President Gruppo PAM S.p.A.
Roberto Graziani, Board Member
Robert Graziani is also: President and CEO of
The Nuance Group.
Michel Paris, Board Member
Michel Paris is also: Board Member Atos Origin SA;
Board Member Cortefiel SA; Board Member Kiloutou,
France; Board Member Swissport International Ltd.;
Board Member Xella International GmbH; Board
Member Global Closure System, France; Managing
Partner and Chairman, Investment Committee PAI
Partners SAS.
Raffaele R. Vitale, Board Member
Raffaele R. Vitale is also: Partner PAI Partners SAS;
Member Executive Committee PAI Partners SAS.
Committees
Audit Committee
Members
Vittorio Levi (Chairman)
Marco Melzi: CFO Gruppo PAM S.p.A.
Roberto Ferraresi: Principal PAI Partners SAS
Mathieu Paillat: Principal PAI Partners SAS;
Board Member Financière Daunou 15; Board
Member Financière Daunou 11.
Compensation Committee
Members
Arturo Bastianello
Raffaele R. Vitale
Investor Relations
Andreas Rudolf
Chief Financial Officer
Phone: +41 43 260 32 32
Fax: +41 43 260 39 30
Email: arudolf@thenuancegroup.com
35
Overview
Review of 2011
Financial statements

The Nuance Group
Annual Review 2011 36
Where to find us
Global Headquarters
The Nuance Group
Unterrietstrasse 2a
8152 Glattbrugg
Switzerland
Tel: +41 43 260 32 32
Fax: +41 43 260 32 33
E: info@thenuancegroup.com
Regional Head Offices
Australia & New Zealand
The Nuance Group (Australia)
Pty Ltd
190 Bourke Road
Alexandria NSW 2015
Australia
Tel: +61 2 9384 4777
Fax: +61 2 9384 4766
Europe
The Nuance Group Europe
Unterrietstrasse 2a
8152 Glattbrugg
Switzerland
Tel: +41 43 260 32 32
Fax: +41 43 260 32 33
Hong Kong
Nuance-Watson (HK) Ltd
Suite 601–604, One Citygate
20 Tat Tung Road
Tung Chung
Lantau
Hong Kong
Tel: +852 2870 6777
Fax: +852 2555 8848
India
Nuance Group (India) Pvt Ltd
Bengaluru International Airport
Alpha 3, Airline Building, 1st Floor
Devanahalli, Bangalore – 560 300
India
Tel: +91 80 6678 3700
Fax: +91 80 6678 3701
North America
The Nuance Group (Canada) Inc
5925 Airport Road, Suite 300
Mississauga, Ontario L4V 1W1
Canada
Tel: +1 905 673 7299
Fax: +1 905 673 7307
Singapore
Nuance-Watson (Singapore) Pte Ltd
#038-008 Passenger Terminal 2
Singapore Changi Airport
Singapore 819643
Tel: +65 6501 1455
Fax: +65 6545 6626
Retail Services & Distribution
The Nuance Group
Retail Services & Distribution
Unterrietstrasse 2a
8152 Glattbrugg
Switzerland
Tel: +41 43 260 39 80
Fax: +41 43 260 39 30

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The Nuance Group
Unterrietstrasse 2a
8152 Glattbrugg
Switzerland
www.thenuancegroup.com