Panalpina Annual Report 2006

Panalpina Annual Report 2006
A Passion for Solutions

On 6 Continents
The Panalpina Group operates a network
of some 500 branches in 90 countries.
In a further 60 countries, the Group cooperates
closely with selected partners.
Group Management Structure
as of April 2007
Internal Auditor Board of Directors
Corporate Secretary
Christoph Hess
Corporate Communications
Corporate Legal Services
Chief Financial Officer
Jürg Honegger
Financial Reporting
Tax Management
Corporate Treasury
Controlling
Credit Control
Investor Relations
Chief Marketing
& Sales Officer
John Klompers
Marketing & Sales
Key Account Management
Industry Verticals
Supply Chain Management
Oil & Gas
Chairman
Gerhard Fischer until 15 May 2007
Rudolf W. Hug as of 15 May 2007
Vice Chairman
Wilfried Rutz
Chief Executive Officer
Monika Ribar
Günther Casjens
Yuichi Ishimaru
Glen R. Pringle
Roger Schmid
Regional CEO Europe
Sandro Knecht 1
Regional CEO Amec
Jörg Eggenberger a. i. 1
Regional CEO Apac
Lukas Fischer 2
Regional CEO China/Taiwan
Robert Timmerman 2
Regional CEO Noram
Karl Weyeneth 3
Regional CEO Latam
Josef Zech 4
Audit Committee
Compensation & Nomination
Committee
Human Resources
Corporate Development
Chief Operations Officer
Jörg Eggenberger
Operations Air & Ocean
Procurement Air & Ocean
Business Processes & Quality
Information Technology
Agent Relations
Security
Panprojects
www.panalpina.com/addresses
Executive Board
Corporate functions
Financial reporting regions:
1 Europe/Africa/ME/CIS
2 Asia/Pacific
3 North America
4 Central and South America
www.panalpina.com/organization

A world-class provider
of forwarding and logistics
services...
Panalpina is one of the world’s leading providers
of intercontinental air and ocean freight forwarding
services and associated supply chain management
solutions.
The Group serves a wide range of sectors, but has
particular expertise in the key hi-tech, automotive,
healthcare and retail and fashion industries. For many
years now, it has been the global market leader in
the provision of logistics solutions for the worldwide
oil and gas industry’s supply chain.
Panalpina’s in-depth knowledge of the industry enables
it to offer intelligent, efficient solutions tailored to
the customers’ needs – even for the most demanding
forwarding and logistics challenges.
... with convincing competitive
strengths
• A global network with detailed knowledge of local
markets
• Strong brand recognition throughout the world
• An asset-light business model that ensures high
operational and financial flexibility together with
reduced exposure to fluctuations in sector conditions
• A healthy balance between major global customers
and internationally operating SMEs
• Centralized purchasing and management of air and
ocean freight capacities
• Substantial volume mass ensuring partnership
agreements with leading carriers
• Recognition as a specialist provider to a number of
key industries
• Global market leader in logistics solutions for the
oil and gas industry
• Best-in-class IT platforms to increase operational efficiency
and cater to individual customer requirements
• Continued training and development of highly
qualified and motivated staff
• Management team with long-term industry experience
www.panalpina.com/vision
Kennzahlen
2006 at a Glance
• Net forwarding revenue increased by 11.3%
to CHF 7,735 million
• Net earnings increased by 52.5%
to CHF 184 million
• Substantially improved profitability
• Air freight and ocean freight activities
clearly outperformed the respective market
growth rates
• More than 1 million TEUs transported
for the first time ever
• More than 700 new jobs created worldwide
• Impressive share price development
Key Figures
in million CHF 2006 2005
Change
in %
Invoiced forwarding services 9,301 8,280 12.3
Customs, duty and taxes (1,566) (1,332)
Net forwarding revenue 7,735 6,949 11.3
Contribution margin (gross profit) 1,591 1,408 13.0
in % of net forwarding revenue 20.6 20.2
Ebitda 313 214 46.0
in % of contribution margin 19.7 15.2
Ebit (operating result) 261 166 57.6
in % of contribution margin 16.4 11.8
Net earnings 184 120 52.5
in % of shareholders’ equity 19.0 14.1
Cashflow 321.3 216.4 48.5
in % of gross profit 20.2 15.4
Net cashflow from operating
activities 240.9 141.9 69.8
in % of gross profit 15.1 10.1
Total balance sheet size 2,108 1,831 15.8
Total financial debts 27.5 20.4 34.8
Shareholders’ equity 969.7 850.9 14.0
Return on equity (ROE) in % 21.6 19.9
Return on capital employed
(ROCE) in % 32.0 21.0
Number of employees 14,304 13,583 5.3
www.panalpina.com/facts

Gerhard Fischer
A solid basis for a successful future:
The retiring Chairman of the Board of
Directors looks back, assessing the
development of the Company, whose
destiny he was so instrumental in
shaping – from 1987 to 1995 as CEO,
and subsequently as Chairman of the
Board of Directors.
Reporting Regions
Once again all reporting regions posted
impressive growth. Asia / Pacific has the
unremitting economic boom in Asian
markets to thank for its continued vigorous
growth. North America also maintained
its positive development. It exceeded
its target of breaking even and
went into profit – proving the success
of its reorganization.
Sustainable Growth
Panalpina sees no contradiction between
an entrepreneurial attitude and
sustainable action. It bases its operations
on economic, security­focused
and ecological principles that foster
its long­term business success in as
comprehensive a way as possible. Entrepreneurial
responsibility is seen as
an all­embracing obligation that becomes
part of the daily lives of both
management and employees.
4 12 68
Business year 2006
The business year’s very convincing
figures mark a clear record in the history
of Panalpina and are further proof
of the success of the Group’s strategy.
Panalpina again successfully transformed
its asset­light business model
into attractive services for its worldwide
customers: a convincing performance,
which was also reflected by the
excellent share price development.
Financial Report
In a generally favorable market environment,
the Group succeeded in increasing
net forwarding revenue by 11.3%
to CHF 7,735 million and net earnings
by 52.5% to CHF 184 million. The continued
significant increase in profitability
is a clear proof that Panalpina is
consistently pursuing its business strategy
and keeping costs under control.
24 6 44
Core Activities
Panalpina continued to maintain its
leading global position in both air and
ocean freight in 2006. Revenues increased
by 8.9% in air and 17.8% in ocean
freight, where the landmark volume of
one million TEUs was passed for the
first time. Supply chain management
posted a growth of 4.7%: an impressive
confirmation by satisfied customers.
Customer Groups
Throughout the world, Panalpina serves
a well balanced portfolio of diverse customers
in a broad range of sectors. At
the same time the Group focuses on
a number of highly globalized key in­
dustries with special requirements in
terms of forwarding and logistics.
Each of these offers untapped market
potentials.
50 2
Marketplace India
India is seen as a challenging market for logistics companies, as it requires a
high degree of innovation and flexibility – especially given the phenomenal
year­on­year growth posted by the Indian market. Panalpina has been running
an operational organization on the subcontinent for over nine years now,
and is excellently prepared for the forthcoming challenges.
Contents
Interview with Gerhard Fischer 4
Report of the Board of Directors 8
Interview with Rudolf W. Hug 9
Executive Board 10
Reporting Regions
Europe /Africa /
Middle East / CIS 26
North America 28
Central and South America 29
Asia / Pacific 30
Marketplace India 2
Core Activities
Air Freight 39
Ocean Freight 40
Supply Chain Management 43
Customer Groups 45
Sustainable Growth 51
Quality, Security, HSE 52
Employees 54
Information Technology 56
Social Commitment 57
Corporate Culture 58
Corporate Governance 59
Consolidated and Annual
Financial Statements 2006
Consolidated Financial
Statement 69
Annual Financial Statement 117
Information for Investors 126
Main Offices Worldwide 128
Imprint 130
Panalpina Annual Report 2006

4 Panalpina Annual Report 2006
Interview with Gerhard Fischer
“A solid basis for a successful future”
The retiring Chairman of the Board of Directors
looks back, assessing the development of the
Company, whose destiny he was so instrumental
in shaping – from 1987 to 1995 as CEO, and subsequently
as Chairman of the Board of Directors.
In May 2007 you will leave Panalpina after
42 years with the Company. What are your
thoughts as you look back on those years?
Satisfaction, gratitude – and also pride. Today
the Group stands on a firm foundation – not just
financially, but also with regard to its strategy,
market position and customer acceptance. So I
think I have successfully carried out my principal
task: creating a solid basis on which the
Group can continue its successful development.
So it’s the perfect time to retire?
Actually I would have liked to retire sooner, rather
than waiting until I was 74. When I came back
into operational management at the beginning of
2006, it was a stopgap measure. But given the
circumstances, it was the best option for all con­
“A timely change of personnel
at top level always gives a
company room for new ideas
and new commitment.”
cerned. Luckily I’m in good physical shape, otherwise
I wouldn’t have been able to take the helm
again. I’m convinced that a timely change of personnel
at top level always gives a company room
for new ideas and new commitment. Nevertheless,
I’m confident that rather than immediately throwing
everything into the melting pot, my successor
will build on what has been achieved in the past.
What’s true for an athlete is also true for Panalpina:
il faut reculer pour mieux sauter – taking a step
back gives you a better run­up.
You caused something of a commotion when
you handed over the top management position
to a woman.
Monika Ribar was quite simply the best choice.
She has been with the company for fifteen years,
she’s the right age, she has an excellent educational
background and broad experience, and she
has the stamina necessary to face the future with
drive and resolution. She also shares my enthusiasm
for the asset­light strategy, which we both
spent many years developing and implementing.
That makes Panalpina a pioneer in our industry,
and I hope my successors will not deviate from
such a successful course without extremely compelling
reasons.
What do you think of the selection of
Rudolf W. Hug as your designated successor?
I’m also very happy with this decision of the Board
of Directors. We know from experience that the
post of CEO is very lonely, so it’s enormously important
to have an experienced, intelligent Chairman
of the Board of Directors as sparring partner. I am
convinced that a relationship based on trust between
the two functions, together with an intensive
exchange of ideas, is proof of good, practical corporate
governance.
Unlike you, Rudolf W. Hug doesn’t come from
the transport sector.
That’s correct. But he has extensive professional
experience, and he has maintained a certain
distance from day­to­day business. That facilitates
an objective view of the company as a
whole. I have been familiar with him and his capabilities
for a number of years, not least from our
having worked together on other boards of directors
– and I’m convinced that he’s exactly the
right choice for Panalpina.

Have you any tips to help your successors on
their way?
One formula for the successful management of a
global group is to put the right people in the right
jobs. Nobody can be an expert in every country:
local circumstances have to be assessed on the
ground. That’s why it’s absolutely essential both
to delegate responsibility and to supervise the
people who exercise it. My experience of this has
been positive. But the CEO must still be visible
to the outside world – there’s no way round that.
Freight transport has always been a people business,
and the customers – quite rightly – want to
know the people to whom they are entrusting their
valuable cargo.
Interview with Gerhard Fischer
“Today the Panalpina Group stands on
a firm foundation – not just financially,
but also with regard to its strategy, market
position and customer acceptance.”
What other qualities does successful
management require?
Readiness to learn and a level­headed assessment
of oneself. Every company goes through highs
and lows. One naturally concentrates on successes
when communicating with the outside world, but
every company also has its setbacks. And it’s
from setbacks that one can learn the most. Even
the most spectacular successes must be properly
assessed, with due regard for all the circumstances
– external as well as internal. This is one
of the central tasks facing the Executive Board –
advised and assisted by the Board of Directors,
which is not involved in day­to­day business. Over
the years, the Board of Directors repeatedly gave
its advice and assistance, with great dedication –
and I should like to take this opportunity to offer
all my colleagues my heartfelt thanks.
Panalpina Annual Report 2006 5

Interview with Gerhard Fischer
6 Panalpina Annual Report 2006
What memories stand out after four decades
with Panalpina?
Too many to count. I was with the company back in
1966, when the first 20­foot and 40­foot containers
were introduced and the first cargo jet planes
came into service. You see them all over the world
today, but back then they were a breakthrough in
logistics. Obviously the major milestones stand
out from all my other memories – like the beginning
of the oil boom, when we laid the foundations in
West Africa for our present­day leading position
in the oil and gas sector. Or the establishment of
Air Sea Broker (now Panalpina Air & Ocean) in 1973
“Customers want to know
the people to whom they are
entrusting their valuable cargo.”
and our first freight­only flights to North America,
Africa and Asia. There was also the important strategic
decision we took in 1987 to concentrate on
air and ocean freight, and not to invest in European
overland transport – which is what all our competitors
were doing. Then, of course, our “final examination”,
as it were: our very successful flotation in
September 2005.
How much has the business changed over
the years?
Basically we still move “boxes from A to B”, just
more and more of them, and faster and faster –
while customer requirements and safety regulations
become increasingly complex. Right from the
start, the transport and logistics sector was both
“Panalpina was one of those
pioneering transport companies
that systematically faced
the challenges of globalized
industries.”
an essential component of global industrial de­
velopment and its logical beneficiary. In the last
twenty years especially, the driving forces behind
our business have been the outsourcing of production
processes and the development of new
markets. Panalpina was one of those pioneering
transport companies that systematically faced
the challenges of globalized industries and services,
seeking solutions to the problems emanating from
by the increasingly complex goods and data flows
of our globally active customers.

How do you assess the sector’s future growth
prospects?
The true importance of forwarding and logistics
is still underestimated. Just think what millions
of companies all over the world spend on research
and development, marketing and distribution –
but what are their products worth if they can’t get
them to where they are needed, on time and un­
damaged? The outlook for the future of our industry
is still positive because the places where goods
are produced and where they are consumed are
drifting further and further apart – and the logistics
chains are becoming ever more complex.
The share price suggests that investors agree
with you.
Yes, but if you constantly have one eye on the
stock market, you’ll never build up a company that
will last. That takes a strong product – or in our
case a first­class service – that the customers feel
they must have. Shareholder value matters, but
so does the satisfaction of all our other stakeholders.
Going public helped us by significantly rais­
ing our profile. This, together with the accompanying
increase in transparency, has made yet more
potential customers all over the world aware of who
we are and what we do. I was an energetic supporter
of flotation because it laid a firm foundation
for the Group’s future development.
And what will that future development look like?
I hope Panalpina will remain true to its strategy
of pursuing sustained organic growth. I am proud
that we have never seen any great fluctuations in
“Our employees are our most
important asset. Every day they
make decisions that determine
the success or failure of our
strategy.”
our employee numbers – the workforce has continuously
increased. Continuity is important for all
stakeholders, but especially so for our employees.
In any case, I was not the only one who wanted
Panalpina to be a reliable, responsible employer:
that aspiration has always been shared by the
Ernst Göhner Foundation. Our employees are our
most important asset. Every day they make decisions
that determine the success or failure of our
strategy. That’s something we must never forget.
Interview with Gerhard Fischer
Panalpina Annual Report 2006

8 Panalpina Annual Report 2006
Report of the Board of Directors
Further increases in revenue, earnings
and profitability
In 2006 Panalpina once more confirmed its position as one of the
world market leaders in forwarding and logistics, with impressive
increases in net forwarding revenue (+11.3%) and net earnings (+52.5%).
A good performance, which investors also found convincing.
Share­price development
The Panalpina share price has performed extremely
well since flotation, demonstrating that investors
find the Group’s strategy and asset­light business
model convincing. But the performance of the
share price in the short term is not a high priority
for the Board of Directors. They regard it as an
expression of confidence, and of appreciation for
the Group’s achievements during the financial
year – but they are sticking to their declared strategy
of pursuing sustained, long­term growth.
Shareholder structure
Contrary to original expectations, the shareholder
structure is now gratifyingly broad and international.
The Ernst Göhner Foundation is still Panalpina’s
major shareholder, with more than 40% of the
equity. As of the reporting date, no other investor
held more than 5%. The company itself holds
0.71% as treasury shares in connection with current
employee share­option programs.
Board of Directors
The Board of Directors has settled in extremely
well following its expansion to seven members in
August 2005. It is a guarantor of continuity and
specialist expertise. Rudolf W. Hug, the new Chairman
Designate, is an international businessman
of proven abilities, with extensive experience in
the working of supervisory boards.
Executive Board
Monika Ribar was appointed CEO in October. An
accomplished manager, she has been with the
company for 15 years – and she has a wealth of
experience to draw on, having been responsible
for the areas of finance, controlling and IT. During
the flotation she played a key role in gaining the
confidence of investors. She was succeeded as CFO
by respected financial specialist Jörg Honegger.
John Klompers (Chief Marketing & Sales Officer) and
Christoph Hess (General Counsel and Corporate
Secretary) joined the Executive Board.
Results
In a market environment that was generally favorable
for a global transport services provider,
the Group succeeded in increasing net forwarding
revenue by 11.3% to CHF 7,735 million and net
earnings by 52.5% to CHF 184 million. The Board
of Directors is particularly satisfied with the continued
significant increase in profitability, clear proof
that Panalpina is consistently pursuing its business
strategy and keeping costs under control.
Once again all reporting regions posted impressive
growth. Asia/Pacific (net forwarding revenue
+15.6%) has the unremitting economic boom in
Asian markets to thank for its continued vigorous
growth. North America (+10.6%) also maintained
its positive development. It exceeded its target of
breaking even and went into profit – proving the
success of its reorganization.
Panalpina continued to maintain its leading global
position in both air and ocean freight in 2006.
Revenues increased by 8.9% in air freight and as
much as 17.8% in ocean freight, where the landmark
volume of one million TEUs was exceeded for
the first time. Both areas increased their market
shares: tonnages were up by 10.5%, volumes by
17.4% – once more significantly ahead of market
growth rates. Supply chain management activities
also posted a nice growth, at 4.7%: an impressive
confirmation of the value placed by customers on
Panalpina’s logistics services.
Dividend increase
The Board of Directors will submit a proposal
for a dividend payment of CHF 3.00 at the General
Meeting of Shareholders on 15 May 2007.
The resulting dividend payout ratio is at the top
30 to 40% band indicated by Panalpina. Dividend
yield, based on year end share price, is 1.81%.
Gerhard Fischer
Chairman of the Board of Directors
www.panalpina.com/bod

For many years Panalpina has concentrated
on air and ocean freight. Does this strategy have
a future?
“We shall be true to our principle
of sustained organic growth”
The Board of Directors is convinced that it does,
and we shall consistently pursue it – although in
the recent past we have also successfully positioned
ourselves in the market with our third mainstay:
supply chain management. As an architect
of transport solutions, Panalpina organizes the
entire process, optimizes all interfaces and selects
the ideal partners for every stage…
… with no infrastructure of its own.
We have taken a conscious decision not to acquire
our own warehouses or fleets of any kind. This
gives the Group the maximum possible independence
and minimizes the risk that comes from
having capital tied up, while at the same time maximizing
flexibility. It also means that our customers
can rely on the best local experts in any market
and always benefit from the latest developments.
But this model means that you have to be content
with lower margins than your competitors.
The differences are relatively small, and the reduction
in risk more than makes up for them. We are
not compelled to invest our own resources in areas
connected with the physical transportation of
goods. Our core competency is the organization
and supervision of integrated solutions. If no adequate
local resources are available, we develop
our own services that are tailor­made for the job
at hand.
What do your customers think of this
“asset light” approach?
Interview with Rudolf W. Hug
Our excellent growth rates speak for themselves.
Customers have given our business model a
favorable reception. They find it attractive and
competitive in day­to­day operations. Panalpina
offers a full range of transport and logistics
services. The individual customer decides which
activities along its goods chain it wants us to
manage.
The Chairman Designate of the Board of Directors on the strategy, business
model and growth policy of the Panalpina Group.
What is Panalpina’s view on the pressure to
consolidate in the sector?
In the last few years we have conclusively demonstrated
our ability to keep increasing market
shares in all our core activities through our own
efforts. We shall continue to pursue sustained
organic growth as long as it makes sense to do
so, and we can see no indication that this will
change in the medium term. We are convinced
that major takeovers give rise to such serious
problems of integration and coordination that they
are very seldom justified. All too often the interests
of shareholders, employees or customers fall
by the wayside.
So is Panalpina sticking to its strategy
of growing mainly through supplementary
acquisitions?
In the past, we have focused on selected bolt­on
acquisitions in fields and regions where they make
real sense for us and our customers, and we shall
consistently continue to do so in future whenever
the need and the opportunity arise. We attach
greater importance to the risk­conscious, qualitative
extension of our range of services than to making
quantum leaps at any price.
Rudolf W. Hug
Chairman Designate of the Board of Directors
Rudolf W. Hug holds a PhD in law from the University
of Zurich and a MBA form 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 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.
Panalpina Annual Report 2006

Executive Board
Sandro Knecht
Regional CEO Europe
10 Panalpina Annual Report 2006
Christoph Hess
Corporate Secretary
Regional CEOs
Lukas Fischer
Regional CEO Apac
Jörg Eggenberger
Chief Operations Officer,
Regional CEO Amec a. i.
Robert Timmerman
Regional CEO China/Taiwan

John Klompers
Chief Marketing & Sales Officer
Karl Weyeneth
Regional CEO Noram
Monika Ribar
Chief Executive Officer
Josef Zech
Regional CEO Latam
Jürg Honegger
Chief Financial Officer
www.panalpina.com/eb
Panalpina Annual Report 2006 11

12 Panalpina Annual Report 2006
Report of the Executive Board
Business year 2006: Further significant
increase of results
The Company increased its gross revenue by 12.3% and its net
forwarding revenue by 11.3% to CHF 7,735 million, achieved by pure
organic growth and reflecting the positive economic trend for the
forwarding and logistics industry. Net earnings improved by 52.5%
to CHF 183.5 million.
Overview of the Group
and its business
Panalpina 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. Panalpina believes that it is the market
leader in the provision of freight forwarding services
for the oil and gas industry globally and that it also
maintains leading expertise and capabilities in
the forwarding markets for the automotive, hi­tech,
retail and fashion, and healthcare sectors.
Through some 500 offices in 90 countries (representing
over 90% of the global GDP), and additional
representation in 60 countries with partner companies,
the Group operates one of the largest
networks in air and ocean freight forwarding globally.
As a Group, Panalpina utilizes its global network,
best­in­class technology systems, well­tried
relationships with transportation providers and
complementary logistics services to assist over
100,000 customers with the management of their
global supply chains. The Group serves a large
and diverse base of global and SME (small and
mid­sized enterprises) customers, many of which
operate in industries that the Group believes will
experience above­average growth.
The Group is primarily organized by regions, and
the secondary segmentation is based on its core
activities. The risks and returns of the Group’s operations
are primarily determined by the geographical
location of the Group’s operations. This is
reflected by the Group’s management and organizational
structure.
In 2006, the Group generated 57.1% of its net
forwarding revenues in Europe /Africa / Middle
East / CIS, 22.0% in North America, 12.2% in Asia /
Pacific and 8.7% in Central and South America.
The Group has a particularly strong presence
in the major Asia – Europe – Asia and transatlantic
trade lanes.
The Group’s principal sources of revenue are from
air and ocean freight forwarding and supply chain
management services. In 2006 the Group derived
48.0% of its revenues from air freight forwarding,
36.5% from ocean freight forwarding, and 15.5%
from associated supply chain management services.
Strategic business priorities
Based on its primary strategic focus as a pure­play
global air and ocean freight forwarder, the Group is:
Leveraging continuing growth in Asian trade flows
The Asia – Europe – Asia trade lane represents
the Group’s most important market, and its share
of the volumes transported on this lane is significantly
higher in both air and ocean freight than its
respective average global market shares. The Group
intends to capitalize on its strong presence in Asia,
where demand for transportation is expected
to grow faster than in other regions of the world.
The liberalization of trade services in China paved
the way for the Group to obtain the license for
a wholly owned enterprise in Shanghai in 2004.
All preparations are finalized for the establishment
of further fully owned branches which are due
to replace the current sales representations.
Further strengthening specialist capabilities
in selected target industries
The Group will further strengthen the industryspecific
competence centers it has established in
order to provide tailor­made services to the oil
and gas, automotive, hi­tech, retail and fashion, and
healthcare industries and to create new competence
centers. These industry verticals are offering
promising growth and require industry­specific
transportation services.

Maintaining a balanced customer mix of SMEs
and global accounts
Management estimates that approximately 20%
and 80% of its net forwarding revenues are derived
from its global accounts and SME customers respectively.
Retaining a well­balanced customer mix
is essential to and a high priority for the Group.
On the one hand, global accounts have a 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 is mitigating
the Group’s exposure to any individual global
account. Management believes that its customer
mix strategy balances the Group’s growth and
creates benefits for its customers.
Improving efficiency and service quality
The Group will continue to lower its cost base by
further optimizing internal processes, by developing
shared service centers for its regional operations,
and by consequently utilizing the economies of scale
created by its increasing volumes. Management
believes that its ongoing drive to improve efficiency
and reduce costs allows Panalpina to out­balance
the potentially negative impacts of increasing price
competition in some of its markets.
Achieving strong organic growth, supported
by selected bolt­on acquisitions
The Group’s acquisition strategy is based on the
following three pillars:
• Scale expansion to further strengthen its position
in the fast growing trade lanes out of Asia and
to improve the Group’s market position in areas
where the Group is underrepresented compared
to its global position. These efforts are concentrated
in the Far and Middle East and some
countries in (Eastern) Europe.
• Network expansion to acquire partner companies
in strategic markets in order to have direct control
of the customer base and enable customers
to fully benefit from the services the Group provides
globally.
• Skill expansion to add and strengthen its capability
in selected industry verticals in specific geographic
areas. This is concentrated predominantly
in the oil and gas sector, where the Group has
a leading position in the Americas, Europe and
Africa and will achieved the same through­out
Asia. The current strategy does not contemplate
any diversification into areas where the Group
does not have a specific competence.
Focusing on an asset­light approach
for supplementary supply chain services
The Group is providing its freight forwarding customers
with logistics and supply chain management
solutions, thereby complementing its core air
and ocean freight service offering. Management
believes that such services lead to closer cooperation
with key customers in the longer term and
provide opportunities for profitable growth. The
Group, however, will maintain its asset­light business
model for logistics services and therefore will
focus on the service aspects of such businesses.
As the 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 best­inclass
partners.
Developing human capital
Panalpina considers itself to be an employer­ofchoice
in the industry. In order to achieve its corporate
objectives, the Group is strongly committed
to attract some of the best talent in the market
and to retain its internal high performers. The Group
rewards outstanding achievements with performance­based
incentive plans whilst offering global
career options and provides a continuous learning
environment, equal opportunities, empowerment,
training and development to its workforce in order
to meet the business requirements.
Share and option programs for management are
creating an additional performance and growth
incentive.
Core activities
The Group engages in the following core activities:
Air freight forwarding
Through its own offices and partner companies,
the Panalpina Group provides air freight forwarding
services in 150 countries. In 2006, air freight forwarding
services accounted for approximately 48%
of the Group’s net revenue. The Group operates
a system of hubs and gateways (e.g. Frankfurt,
Luxembourg, Paris, Chicago, Huntsville, Los Angeles,
Miami, Dubai, Macao and Singapore). Approximately
65% of the total air transport capacity utilized
is contracted in advance; approximately one tenth
of that amount represents commitments valid for
six to twelve months and approximately nine tenths
represent commitments valid for less than six
months. The other 35% of total air transport capacity
is purchased in the spot market. This mix
ensures a certain amount of controlled capacity at
peak times, while providing the Group with the
necessary flexibility to adapt capacities to actual
demand.
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Panalpina Annual Report 2006 1

Report of the Executive Board
14 Panalpina Annual Report 2006
Ocean freight forwarding
The Group itself provides ocean freight forwarding
services in 90 countries and, through its partner
companies, in an additional 60 countries. Ocean
freight forwarding services accounted for 36.5%
of the Group’s net revenue in 2006. The Group has
tailored its services to the transportation needs
of its customers. For customers who transport full
container loads, it offers FCL (full container load)
services. In contrast, for customers who ship
smaller consignments, the Group offers a competitively
priced consolidation product with its LCL
(less than container load) service. As customers
can combine these products with standardized
service options, such as door­to­door, door­to­port,
port­to­door and port­to­port deliveries, the services
the Group offers in the ocean­freight area can
easily be tailored to each customer’s needs.
Supply chain management
In 2006, supply chain management services
accounted for 15.5% of the Group’s net revenue.
The Group offers a whole range of services and
logistics solutions designed to improve its customers’
supply chain management. For customers
who run supply chain management in­house, the
Group offers consulting services related to 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 order­fulfillment,
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.
Results of the year 2006
Significant impacts of currency fluctuation, rates,
taxes, customs and duties
Management believes that the operating results
of the Group are effectively currency neutral.
The currency mix of revenues and cost items is
fairly balanced due to the diversified nature of
the business, industry practices and the worldwide
nature of the Group’s activities.
Forwarding revenue
The net forwarding revenue of the Group increased
by 11.3% (or 10.2% currency adjusted) over the
year 2005, from CHF 6,949 million to 7,735 million.
A reclassification of 2005 figures in the amount
of CHF 13.5 million has been made: suppliers’ discounts
have been reclassified from forwarding
services revenue to reduce the forwarding services
expenses from third parties.
Revenue growth was merely organic, the acquisitions
realized during the course of 2005 accounted
for 1.0% of the growth.
Historically, the Group’s results have been subject
to seasonal trends. The Group’s first fiscal quarter
is traditionally weaker than other fiscal quarters,
and the third and fourth fiscal quarters have generally
been the strongest. This seasonality is based
on many factors, including holiday seasons, consumer
demand, climate and economic conditions.
In particular, a substantial portion of the Group’s
revenues are derived from customers in industries
whose shipping patterns are tied closely to consumer
demand or are based on just­in­time production
schedules. Management estimates that due
to seasonal trends approx. 46 – 48% of the annual
net forwarding revenue is generated in H1 each
year and approximately 52 – 54% in H2 each year.
In the year under review, for the first time ever,
the first quarter showed an accelerated start due
to high volumes, resulting in an impressive quarter
end in March. The higher number of working days
compared to the previous year contributed as well
to the higher revenues.
In the opinion of Management, this strong start was
also the result of a slight shift in the world economy
from the second quarter into this first quarter;
the volumes shipped across the globe and the
high levels of the different surcharges (fuel and
security) contributed to these results.
The second quarter ended only slightly higher than
the first, with the month of June showing its traditional
quarter end surge. Additionally, the amount
of working days mainly in Emea, accounting for
57% of the Group’s net forwarding revenue, had
a negative effect on the second quarter.
Volumes pushed by the growth of existing customers,
the oil and gas environment still very active
thanks to the energy prices, the acquisition of new
accounts, large and small, the commodity prices
encouraging the mining industries to increase their
developments, all these factors contributed to the
double digit growth of the net forwarding revenues
in 2006.
Illustrated below are the historical trends of seasonality
including 2006 as observed in the development
of net forwarding revenue in 2006 compared
to the previous two years:

% of share per quarter of total net forwarding revenue
in million CHF
2,200
2,100
2,000
1,900
1,800
1,700
1,600
1,500
1,400
1,300
2006
2005
23.7%
21.8%
Q1
1,834
1,517
24.0%
24.1%
Q2
1,858
1,673
25.1%
25.4%
Q3
1,944
1,767
Q4
2,099
1,991
27.2%
28.7%
Regional development of net forwarding revenue
Net forwarding revenue share per region
Asia/Pacific
North America
Central and South America
Europe/Africa/Middle East/CIS
22%
8,7%
57,1%
12,2%
The 11.3% increase in net forwarding revenue is
primarily due to improved results from all regions.
Significant developments in the geographic
regions in 2006 were as follows:
• Net forwarding revenue in Europe /Africa / Middle
East / CIS increased from CHF 3,929 million in
2005 to CHF 4,418 million respectively at 12.4%.
The fast growing Far East market and the im­
portance of the Asia – to – Europe lane, being the
largest for Panalpina, contributed to the growth
in this geographical region. Not only could new
large accounts be secured during the course
of 2006, but the increase in the volumes shipped
by existing customers resulted in impressive
double digit growth numbers. At the same time,
further developments of the oil and gas sector
in the African countries as well as around the
Caspian Sea, in conjunction with the acquisition
performed in 2005 (Overseas Shipping in Norway)
to complement the Group’s network for this
industry, led to the sustained growth that started
the previous year.
• The 10.6% increase in net forwarding revenue
in North America (2005 CHF 1,536 million
to 1,699 million in 2006) was primarily due to
the overall business volume increases, high
activities in the oil and gas sector but also in
the mining sector.
• In Central and South America, net forwarding
revenues increased 1.2% respectively CHF 8 million
to 670 million in 2006. Central and South
America form an important contributor within the
Panalpina network, supporting major business­
es usually controlled and managed in Europe
or North America. Also on this continent, the oil
and gas sector as well as, if not even to a higher
extend, the mining business have gained additional
share in the overall revenues. The telecom
industry has also increased thanks to business
wins during 2005.
• Asia / Pacific’s net forwarding revenue increased
15.5% (2005 CHF 821 million to 948 million
in 2006) mainly due to the increase of business
awarded to Panalpina from Asian companies.
Apart from European and North American companies
importing from Asia, exports from Asian
companies are also increasing their share within
the trade flows. Asia/Pacific represents also
a very important contributor within the Group
and is crucial for its development.
Core activities overview
In 2006, the Group derived 48.0% (previous year
49.1%) of its revenues from air freight forwarding,
36.5% (34.5%) from ocean freight forwarding, and
15.5% (16.4%) from associated supply chain management
services, which represents a slight shift
in proportion from air freight and supply chain management
services in favor of ocean freight compared
to 2005.
Net forwarding revenue from air freight increased
8.9% from CHF 3,408 million in 2005 to CHF 3,713
million in 2006, from ocean freight it increased
an impressive 17.8% from CHF 2,399 million to
2,826 million and from supply chain management
it increased 4.7% from CHF 1,142 million to
1,196 million.
Net forwarding revenue
2006 2005
in million CHF
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
3,713
3,408
2,826
2,399
1,196
1,142
Air freight Ocean freight Supply chain
management
Report of the Executive Board
Panalpina Annual Report 2006 15

Report of the Executive Board
16 Panalpina Annual Report 2006
Quarterly development of the core activities
Air freight Ocean freight Supply chain management
in million CHF
2,250
2,000
1,750
1,500
1,250
1,000
750
500
250
248
535
734
315
675
844
Q1/05
Q1/06
Air freight review
271
593
810
292
679
887
Q2/05
Q2/06
According to statistics gathered by IATA, International
Air Transport Association, the international
freight tonnages grew by 4.6% in FTKs (freight
ton kilometers measuring the actual freight traffic).
This is still below the trends seen in the past of
5.6% in average, but better than in 2005, where
the air freight market growth was 3.2%.
Industry sources have attributed the continued
downturn in freight tonnages to high oil prices that
are dampening economic activity.
The air freight activity in 2006 for the Group can
be summarized as follows:
• Tonnages grew 10.5% reaching 874,000 tons.
This outgrowing of the market was fueled
by the gaining of new accounts as well as by
the increase of existing business favored by
the positive trend of the world economy in 2006.
• Fuel and security surcharges were still inflating
the net forwarding revenues, remaining at high
levels during the better part of the year.
Tonnages on westbound traffics, namely Asia –
Europe, and eastbound Asia – North America
remained buoyant and grew at rates well above the
average growth rate experienced in the market.
Tonnage growth on eastbound traffics from Europe
to the Far East and Asia were still suffering from
over­capacity and a downtrend in prices to customers.
Overall, the tonnages flown on the lane
Emea – Asia – Emea experienced an increase of over
19.5%. This remains the Group’s single most
important trade lane comprising over 30% of total
tonnage.
Next to those rather traditional high volume
trade lanes, in 2006 a new trend started to show
and recorded impressive growth rates: Asia – Latin
America has increased more than 20% compared
to previous year.
283
625
859
315
717
912
Q3/05
Q3/06
340
646
1,005
274
755
1,070
Q4/05
Q4/06
In summary, air freight tonnages grew at a much
higher pace than in 2005 with continued imbalances
on the different trade lanes and fierce competition
to secure capacity during high season:
price pressure both from airlines and customers
is omnipresent.
Ocean freight review
Recording an impressive revenue growth of 17.8%
over previous year, ocean freight was the front
running core activity in 2006. The reasons thereof
are enumerated below:
• 17.4% volume increase out­paced market growth
of 10.7% (Clarkson, January 2007). The absolute
figure rose from 922,880 TEU in 2005 to exceed
the million TEU with 1,084,000.
For the first time since many years, the supply in
containerized capacity substantially outpaced
the demand, having a compressing effect on the
level of the ocean freight buying rates.
The Europe – Far East eastbound / westbound
trade lanes are the Group’s strongest trade lanes,
comprising over 35% of ocean freight volumes,
followed by the Transpacific eastbound /westbound
trade lane, which comprised 17%, and
the Transatlantic eastbound/westbound, which
comprised 16%.
In ocean freight, the same scenario as in air freight
could be observed: one of the most significant
growth rates was recorded on the Asia – Latam
southbound lane growing by 47%.
• The net forwarding revenue of the first quarter
2006 ended even higher than the highest quarter
of 2005, announcing a record year. The revenue
growth was affected by both, a considerable
increase in volume and a growing imbalance of
supply and demand for capacity on the market.
This granted the industry and consequently
Panalpina further rate decline on the major East /
West trades.
In a contrast, the capacity supply for bulk vessels,
necessary for the Group’s special project business,
was not exceeding demand in the same way
as the container ships capacity. Consequently
the freight rates of this sector increased during
2006, contributing to higher net forwarding
revenues, the project business accounting for
5% of the total Group’s revenues.
The Bunker Adjustment Factor (BAF), corresponding
to the fuel surcharge for ocean freight,
remained at very high levels during the majority
of the year, slightly easing up during the last
quarter. Nevertheless, the average BAF for 2006
was higher than for the previous year. Management
estimates its share on the net forwarding
revenues increase over the previous year to be
approximately 7%.
• Continued pressure from customers.

Bearing the above in mind, overall growth in net
forwarding revenue of ocean freight was influenced
by volume growth in high­revenue trade lanes,
decreasing freight rates, continued pressure from
customers.
Supply chain management review
Supply chain management (SCM) services are
specifically offered in specific geographical areas
and as integrated solutions for targeted industry
verticals including oil and gas in order to meet the
entire range of customer’s requirements. The offering
of supply chain management services also
supports cross­selling opportunities for existing
customer segments in air and ocean freight.
The growth derived from SCM of 4.7% in 2006 was
substantially lower than in 2005, where the Group
recorded an increase in net forwarding revenue
of 22.5%. 2005 was an exceptional year influenced
in particular by the award of a major contract by
one of the world’s leading mobile phone manufacturers
in South America. It was also attributable
to the integration of Grampian International Freight,
a successful acquisition with main activities in
supply chain management in the oil and gas sector.
In 2006 however, supply chain management solutions
have been offered to new accounts in the automotive
industry in the USA, supporting their continuous
penetration of the North American market.
Contribution margin (gross profit)
The most significant driver of freight forwarding
profitability is the contribution margin (gross profit).
This margin is basically the difference between the
buying and selling rate on per­unit­of­weight­orvolume
(i.e. kilograms, tons, TEUs) basis. Contribution
margin (gross profit) per unit­of­weight­or­volume
basis is generally driven by available capacity,
competition, and supply/demand imbalances.
An important factor that influences the contribution
margin (gross profit) is changes in buying rates
that have a direct impact on the cost of forwarding
services from third parties. Management believes
that until 2005, freight capacity has been strained
causing frequent increases in freight rates, especially
in ocean freight. The trend turned to the opposite
during the course of 2006. Management also
believes that cyclical trends in freight capacity tend
to be shorter for air freight than for ocean freight.
The time span before additional capacities are
realized and released in ocean freight is, due to the
nature of the business, longer than those in air
freight.
During a period of accelerated demand for freight
services, owners of freight capacity impose substantial
rate increases, taking advantage of their
enhanced pricing power. In turn, freight forwarders
attempt to pass on these rate increases to their
customers. However, there is typically a lag between
these two events, leading to a short term rise in
capacity costs that are absorbed by the forwarders.
This leads to temporary margin pressure that persists
until freight rate increases can be fully passed
on to customers. Pressure on the contribution
margin (gross profit) is eased as additional capacities
are released and/or forwarders successfully
pass on rate increases to their customers. In the
Group’s experience, the converse applies in periods
of declining freight rates, when the lag effect leads
to temporary margin improvements.
The Group’s contribution margin (gross profit)
increased by 13.0% from CHF 1,408 million in 2005
to CHF 1,591 million in 2006. The currency development
during 2006 had a favorable impact of
1.0% or CHF 14 million. The contribution margin
(gross profit) as a percentage of net forwarding
revenue increased slightly from 20.3% to 20.6%.
Change in contribution margin (gross profit)
in million CHF 2006 2005
Change
vs. Previous
year in %
Net forwarding
revenues 7,735 6,949 11.3
Contribution margin
(gross profit) 1,591 1,408 13.0
As percentage of net
forwarding revenues 20.6% 20.3%
0.3 percentage
point
The Group’s contribution margin (gross profit) was
impacted by several factors during 2006 namely:
• a strong start in 2006 compared to previous
years;
• overall reduction of freight buying rates due to
overcapacity on the main markets and trade lanes;
• less fuel surcharge volatility than in 2005,
impacting less on the gross profit margins;
• the full year impact of the previous year’s bolt
on acquisitions in the oil and gas sector, which
lives a striving period. These acquisitions count
for 1% of the contribution margin (gross profit)
growth.
Report of the Executive Board
Panalpina Annual Report 2006 1

Report of the Executive Board
18 Panalpina Annual Report 2006
Forwarding services/
expenses
in million CHF
2006
Contribution margin (gross profit) share per region
Asia/Pacific
North America
6,144
2005
5,541
Central and South America
Europe/Africa/Middle East/CIS
in million CHF
Contribution margin
(gross profit)
19.3%
8.6%
57.6%
1,408
14.5%
The development of the share of gross profit in 2006 was relatively
balanced across the regions.
Europe/Africa/Middle East/CIS (Emea) regained share of the
Group’s contribution margin, increasing by 70 bps from 56.9% to 57.6%.
This gain happened to the detriment of Asia/Pacific (Apac).
Central and South America (Latam) as well as North America
remained stable.
Full year
2006
1,591
Regional development of contribution margin
(gross profit)
Panalpina invoices a service based on customer
requirements. For example, air freight services sold
and invoiced in Europe may cover the transport
of goods from Asia to Europe. Invoiced revenues
in such a case are fully reflected within Europe.
However, a portion of the contribution margin (gross
profit) is shared with Asia in line with revenue
sharing agreements and responsibilities. Therefore,
when comparing Panalpina’s geographic
region reporting, no final conclusions can be drawn
based solely on the amount of revenues or contribution
margin (gross profit) derived from the
regions and various trade lanes. However, management
believes that comparing a geographic region’s
revenues year­on­year reveals trends within that
region and helps explain business development.
The following table shows the percentage shares
and growth rates of the contribution margin (gross
profit) as well as the contribution margin (gross
profit) as a percentage of net forwarding revenue
per region for the years 2005 and 2006.
GPM*
in %
It needs to be mentioned that the 2005 contribution
margin (gross profit) for the region Europe / Africa /
Middle East / CIS was negatively impacted by the
effect of the one­time incident in the air freight
division of Panalpina Airfreight Management Ltd.
of CHF 22.4 million.
The substantial increase of the contribution margin
(gross profit) in this region in 2006 can be ex­
plained by different factors: on the one hand, the
further development and expansion of the oil
and gas sector from existing customers out of the
traditional African oil and gas countries, but also
from emerging energy producing geographical
areas like Central Asia (Kazakhstan, Azerbaijan
a.s.f.). On the other hand, the constantly increasing
demand for goods produced in Asia, either from
European or, more and more, upcoming Asian companies,
is the reason for the volume growth into
Europe. Not to forget the full year impact of the
acquisitions realized in 2005 in Norway accounting
for 1.2% of the contribution margin (gross profit)
increase of this region. At the same time, the Group
was awarded various additional multinational
accounts in the telecom industry that contributed
to the achieved increase.
The North American region continued on the
growth path it engaged on during 2005 to the difference
that the margin erosion stopped and
even reversed slightly to end the year with positive
results. Important contributors to these gains are
multinational accounts in the different industry
verticals but mainly in the oil and gas sector as
well as the mining sector.
Central and South America could record a considerable
contribution margin (gross profit) level
thanks to project business in the mining sector as
well as the positive development of Asian imports.
The Asia / Pacific region solely experienced a gross
profit margin reduction mainly resulting from the
increasing air freight rates that were most significant
in the fourth quarter, where capacity traded
at high levels because of high demand. Fierce
competition which forced price reductions to customers
and some modal shifts on the Asia – Europe –
Asia trade lane affected the margin as well.
∆ per year
in %
share
in %
Full year
2005
Europe /Africa / Middle East / CIS 916 20.7 14.4 57.6 801 20.3 56.9
North America 307 18.1 12.5 19.3 273 17.8 19.4
Central and South America 137 20.4 14.2 8.6 120 18.1 8.5
Asia / Pacific 231 24.4 7.9 14.5 214 26.1 15.2
GPM*
in %
Total 1,5 1 20.6 1 .0 100.0 1,408 20.2 100.0
* GPM: gross profit margin (gross profit in percent of net forwarding revenues)
share
in %

Contribution margin review per core activity
In 2006, the Group derived 43.2% of its contribution
margin (gross profit) from air freight forwarding,
30.9% from ocean freight forwarding, and 25.9%
from associated supply chain management services,
which represents a slight shift in proportion
from air freight in favor of ocean freight while supply
chain management services remained stable
compared to 2005.
Contribution margin (gross profit) from air freight
increased 8.0% from CHF 636 million in 2005 to
CHF 687 million in 2006. Normalized due to onetime
impact from the incident in the air freight division
in 2005, the increase over the previous year
would be 4.3%. The contribution margin (gross
profit) from ocean freight increased an impressive
22.1% from CHF 403 million to 492 million and
from supply chain management, it increased
11.7% from CHF 369 million to 412 million.
Contribution margin (gross profit)
2006 2005
in million CHF
800
700
600
500
400
300
200
100
687
in million CHF
636
492
403
412
369
Air freight Ocean freight Supply chain
management
Full year
2006
GPM*
in %
Quarterly development of the core activities
Air freight Ocean freight Supply chain management
in million CHF
450
400
350
300
250
200
150
100
50
76
91
149
91
116
157
Q1/05
Q1/06
107
101
147
107
118
169
Q2/05
Q2/06
93
103
156
102
128
174
Q3/05
Q3/06
93
108
184
112
130
187
Q4/05
Q4/06
The Group’s air freight activity developed according
to expectations in 2006. The increase in contribution
margin (gross profit) was impacted by the
tonnages outpacing market growth, as already seen
in the net forwarding revenues.
On the other hand, the gross profit margin dropped
20 bps from 18.7% to 18.5% reflecting the further
compression of the yields by tight rate environments,
especially in the last quarter, while capacity
demand largely exceeded supply during peak
season, driving the buying rates to high levels. This
was mainly observed out of Asia to Europe or to
North America, the main trade lanes of Panalpina.
2006 was the year of ocean freight: not only the
volumes shipped through the Group’s network outgrew
the market performance, but the gross profit
margins increased year­on­year by 60 bps. This
allowed to achieve a contribution margin (gross
profit) 22.1% higher than in the previous year.
∆ per year
in %
share
in %
Full year
2005
GPM*
in %
Air freight 687 18.5 8.0 43.2 636 18.7 45.2
Ocean freight 492 17.4 22.1 30.9 403 16.8 28.6
Supply chain management 412 34.4 11.7 25.9 369 32.3 26.2
Total 1,5 1 20.6 1 .0 100.0 1,408 20. 100.0
* GPM: gross profit margin (gross profit in percent of net forwarding revenues)
share
in %
The main reason for this incremental margin is the
increased supply of container capable capacity,
leading to the substantial drop of buying rates for
ocean freight, especially in the first half of the year.
Another factor influencing the gross profit margin
was the lesser volatility of the BAF, the fuel surcharge
indicator in ocean freight. As explained
previously, the passing on of those rates variations
typically happen with a certain time lag, the forwarder
absorbing the difference in either direction.
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Report of the Executive Board
20 Panalpina Annual Report 2006
Supply chain management achieved a contribution
margin (gross profit) growth of 11.7% over the previous
year. This value added service is increasingly
attractive to our existing customers, who also
become more and more demanding for tailor­made
solutions supporting their outsourcing strategies.
Operating result
Consolidatet net
earnings
in million CHF
2006
2005
Ebitda
120
184
Cash flow from
operating activities
214
215
313 338
The Group’s Ebit increased by 57.6% from
CHF 165.6 million in 2005 to 261.0 million in 2006,
respectively 57.8% currency adjusted. The currency
impact at this level is a very minimal amount of
0.2 percentage points. The acquisitions performed
during 2005 and recorded for a full year period
in 2006 had an effect of 1.6% on Ebit level. Furthermore,
the operative result was influenced by the
increases in the following income/expense categories
during 2006:
• An increase of 5.1% in personnel expenses
reaching CHF 886.9 million compared to 2005.
A 1 percentage point currency impact needs
to be considered translating in CHF 8.2 million
additional expenses. The increase was influenced
by a 5.3% increase in headcount, one­time
termination benefits related to the change on
Executive Board level, but also worth mentioning
is the high levels of personnel expenses recorded
last year due to one­time change in management
in North America.
• While additional human resources were hired in
Asia to support the business growth, highly
skilled employees were necessary to handle the
specialized business in the oil and gas and
the mining industry in the Africa and CIS regions,
whereas the European and Central and South
American countries concentrated on increasing
productivity.
• Other operating expenses were positively
impacted by a one­time adjustment amounting
to CHF 11 million, which has been recorded
in accordance with the change in estimations of
allowance for trade receivables as described
in the notes of the consolidated financial statements.
Normalized, the resulting expense increase
mainly derives from a raise in rent and communication
expenses in line with the business growth.
The impact from the acquisitions performed
during 2005 accounted for 1% of the increase in
other operating expenses (non currency adjusted).
• A further event had a positive impact on the
other operating expenses. An updated actuarial
calculation on the Group’s captive insurance
company revealed an excess of claims provisions
made in 2003, when the entity was established.
Based on a longer time series of data, the provision
has now been adjusted. The positive impact
of CHF 5.4 million has been recorded in the
last quarter in the region Europe /Africa / Middle
East / CIS.
• After those adjustments, the resulting other
operating expenses increase from current operations
reflects on one side the business growth
handled in 2006, but also the impact of the expansion
of the Group’s network in certain strategic
geographical areas like China and Eastern Europe,
where offices were opened during the course
of the year. The sale of owned buildings realized
in 2005 engendered in 2006 additional rent and
maintenance expenses.
Normalized Ebitda (calculated by excluding impact
of gain on sale of non­current assets and excluding
the impairment of financial assets) increased
from CHF 202 million to 313 million in 2006 or an
increase of 54.7% as follows:
in thousand CHF YE 2006 YE 2005
Ebitda as per annual report 312,669 214,170
in % of contribution margin
(gross profit) 19.7 15.2
Normalized Ebitda* 12, 68 202,216
in % of contribution margin
(gross profit) 19.7 14.4
* Calculated excluding impact of gain on sale of non­current
assets and excluding impairment of financial assets.
Normalized Ebit (calculated by excluding impact
of gain on sale of non­current assets, impairment
of financial assets increased from CHF 153.9 million
to CHF 261.6 million in 2006 or an increase of
70.0% as follows:
in thousand CHF YE 2006 YE 2005
Ebit per annual report 260,998 165,633
Gain on sale of
non­current assets 99 (11,954)
Impairment of
financial assets 511 174
Normalized Ebit* 261,608 15 ,85
in % of contribution margin
(gross profit) 16.4 10.9
* Calculated excluding impact of gain on sale of non­current
assets, impairment of financial assets

Regional development of the operating result
Normalized Ebit versus reported Ebit per region was as follows:
in million CHF
Reported
Ebit
In addition to the factors that have impacted the
contribution margin (gross profit), the following
operating cost items had a significant impact on
the operating results (Ebit) by region in 2006
compared with 2005:
2006
Normalized
Ebit*
• When comparing the Ebit of 2005 and the current
year for the region Europe /Africa / Middle East /
CIS, it needs to be noted that the previous year
results were impacted by the one­time incident
in the air freight division Panalpina Airfreight
Management Ltd. of CHF 22.4 million. Despite
this impact, the performance of this region was
the strongest ever, driven by the overall economic
growth in Europe, the increased volumes
traded with Asia, the booming oil and gas and
mining sectors investing in further developments.
At the same time, productivity gains could be
achieved keeping the increase of expenses at the
lowest level within the Group.
• In North America, the Ebit of the previous year
was positively influenced by the gain on sale
of two buildings, one in the USA, the other in
Canada. Absent the gain, North America’s normalized
Ebit loss of CHF 9 million must be reviewed
in the context of the one­time costs related to
the change of management. In 2006, the region
delivered a positive result which exceeded
management’s expectations: the results of the
restructuring and reorganization to rationalize
the cost structure showed promising trends and
helped achieve positive results in the region.
North America reached an Ebit of CHF 11 million,
mainly coming from exceptional project and oil
and gas business as well as from considerable
wins in Canada.
in %
of contribution
margin
Reported
Ebit
2005
Normalized
Ebit*
in %
of contribution
margin
Europe /Africa / Middle East / CIS 163 163 17.8 82 82 10.3
North America 11 11 3.6 3 –9 –2.9
Central and South America 19 19 13.9 11 11 9.0
Asia / Pacific 68 68 29.4 70 70 32.6
Total 261 261 16.4 166 154 11.0
* Calculated excluding impact of gain on sale of non­current assets and impairment of financial assets
• Although Central and South America is constantly
confronted with inflation and currency
appreciation, improvements in gross profit
margins, acting as important player within the
network for European and North American customers
and a tremendous effort in productivity
gains contributed to the success of this region.
• In Asia / Pacific the Ebit was impacted by the
ongoing investments and associated expenses
related to the expansion of the operational network
in China: not only from an infrastructure
point of view but also from a staffing point of
view. The market is becoming more competitive
through the local niche competitors, setting
pressure from the revenue side but the volumes
handled are constantly increasing leading to the
deterioration of the cost/income ratios.
Ebit per region
2006 2005
in million CHF
160
140
120
100
80
60
40
20
163
82
Europe/Africa
Middle East/CIS
68
70
19
11
Asia/Pacific Central and
South America
11
3
North
America
Report of the Executive Board
Panalpina Annual Report 2006 21

Report of the Executive Board
22 Panalpina Annual Report 2006
Financial positions
Balance sheet
Liabilities
in million CHF
2006
2005
(1,131)
Assets
(962)
Condensed consolidated balance sheet
Current assets
0
1,820
2,108
The Group’s current assets increased by 19.3%
from CHF 1,486 million on 31 December 2005
to CHF 1,773 million on 31 December 2006. The
increase in current assets is primarily attributed
to the increase in cash and trade receivables.
The total balance of cash and financial assets
increased by CHF 144 million as a result of the
Group’s strong cash generation. The Group’s net
cash position increased from CHF 210 million
to 347 million.
Trade receivables which comprise 56% of total
assets increased 7.0% from CHF 1,108 million
on 31 December 2005 to CHF 1,185 million on
31 December 2006. The increase in trade receivables
was below to the increase of 12.3% in
forwarding revenues and in coherence with the
growth of the business.
Trade receivables as a percentage of forwarding
services of the preceding twelve months decreased
from 13.4% on 31 December 2005 to 12.7% on
31 December 2006. End of 2006, management
determined based on analyses of historical trends,
Group’s experience and markets observation, to
Net assets (equity)
in million CHF
2006
2005
31 December
2006
(mCHF)
858
978
31 December
2005
(mCHF) % change
Cash and financial assets 374 230 62
Other current assets 1,399 1,255 11
Property, plant and equipment 162 152 6
Intangible assets 102 109 –6
Other non­current assets 72 73 –2
Total assets 2,108 1,820 16
Debt (current and non­current) (27) (20) 34
Other current liabilities (986) (837) 18
Other non­current liabilities (117) (105) 12
Total liabilities (1,131) (962) 18
Total liabilities 8 858 14
Capital and reserves attributable to Panalpina shareholders 970 851 14
Equity attributable to minority interests 8 7 15
Total equity 978 858 14
A full consolidated balance sheet is presented on page 71 of the Consolidated Financial Statements.
adjust the estimates for allowance of trade receivables
not individually impaired. The effect of this
change in accounting estimates has resulted in an
increase in trade receivables in approximately
CHF 11 million. In consideration of this change, the
outstanding trade receivables in percentage of
forwarding services would decrease by 0.1 percentage
points to 12.6% compared to 13.4% in 2005.
Non­current assets
The Group’s non­current assets increased modestly
by 0.4% from CHF 334.3 million on 31 December
2005 to CHF 335.6 million on 31 December 2006,
primarily as a result of the impact in property, plant
and equipment which increased from CHF 152.5
million on 31 December 2005 to CHF 161.6 million
on 31 December 2006.
Current liabilities
The Group’s current liabilities increased by 18.1%
from CHF 855.5 million on 31 December 2005
to CHF 1,010.1 million on 31 December 2006. The
increase in current liabilities was primarily due
to an increase in trade payables and accrued cost
of services resulting from better management of

payables and improved payment terms from suppliers.
Trade payables increased from CHF 437.4 million
on 31 December 2005 to CHF 501.1 million on
31 December 2006, which reflects the growth of the
business, whereas accrued cost of services
increased by 40.0% from CHF 157.6 million on
31 December 2005 to CHF 220.6 million on
31 December 2006. The increase in accrued cost
of services reflects the high business activities
in the last days in 2006.
Non current liabilities and shareholder’s equity
The Group’s non­current liabilities increased by
13.1% from CHF 106.5 million on 31 December
2005 to CHF 120.5 million on 31 December 2006.
This was primarily a result of increased provision
for claims and for pensions and other post­em­
ployment benefits. The most significant movements
in shareholder’s equity were the income of
CHF 183.5 million, the Panalpina dividend payments
of 49 million (2005: CHF 50 million) and
currency translation losses of CHF 8.1 million.
The currency translation losses mainly arose from
investments in foreign operations.
Liquidity and Capital Resources
Cash flow from operating activities
in million CHF
2006
2005
Cash flow
214.6
338.3
The Group had a very strong cash flow from operating
activities of CHF 338.3 million compared
with CHF 214.6 million in 2005, which was 21.3%
and 15.2% respectively of the reported contribution
margin (gross profit).
Working capital management
The net working capital decreased from CHF 418.7
million on 31 December 2005 to CHF 413.0 million.
In early 2005, management introduced successfully
measures which are consequently reflected in
the positive impact in net working capital.
Despite the growth in forwarding services and in
trade receivables, the Group could maintain the
net working capital stable. The Group reduced net
working capital in percentage of forwarding services
by 0.62 percentage points to 4.44% from
5.06% last year.
Cash Flow from investing activities
In 2006, the Group invested a total of CHF 57.0
million for capital expenditure (CHF 48.2 million
in property, plant and equipment, and CHF 8.8
million in software). In 2006, there was no investment
through business combinations (in 2005
CHF 11.7 million).
All capital expenditures in 2006 were financed
by the operational cash flow of CHF 240.9 million
generated during the current year.
Disinvestments decreased from CHF 39.0 million
in 2005 to CHF 2.8 million in 2006. Previous year
disinvestments derived essentially form the sale of
operational property in USA and Canada.
Cash Flow from financing activities
Cash flow from financing activities was mainly
driven by dividend payments and disposal
of treasury shares.
Employees
Region 2006 2005
Europe /Africa / Middle East / CIS 7,529 7,499
North America 2,241 1,990
Central and South America 1,988 1,923
Asia / Pacific 2,546 2,171
Total 14, 04 1 ,58
In accordance with the market development and
the Group’s network expansion on the Asian continent,
the staff count in Asia / Pacific increased by
17.3% during the year 2006.
www.panalpina.com/news
Report of the Executive Board
Panalpina Annual Report 2006 2

“Demand soaring on
a global scale thanks to positive
economic climate and
booming Asian markets.”
24 Panalpina Annual Report 2006

Reporting Regions
Panalpina Annual Report 2006 25

Reporting Regions
European Regional
Competence Center
Based in Basel
Amec Regional
Competence Center
Based in Dubai
Net revenue: CHF 4,418 million
Headcount: 7,529
Branches: 258
26 Panalpina Annual Report 2006
Europe / Africa / Middle East / CIS
Broad­based economic growth and
increased investment in the oil and gas
industry
In the largest of its reporting regions, Panalpina was able to exploit
the generally positive economic climate to full potential and capitalize
on the Group’s undisputed market leadership in the oil and gas sector
to boost net forwarding revenue for 2006 by an impressive 12.4%.
Panalpina achieved impressive growth in all Emea
areas. Major new orders were signed and existing
contracts extended not only in the oil and gas
industry, which has traditionally been of particular
importance in this region, but also in all other key
sectors.
Western Europe
A thriving economy and buoyant imports from the
booming Asian markets ensured strong revenues
in most West European countries, with the highest
growth experienced in Switzerland, Germany and
the British Isles.
In Switzerland, supply chain management services
recorded a particularly exceptional growth in the
year under review, as an increasing number of firms
chose to outsource their logistics. In response,
Panalpina installed a number of implant teams,
mainly within companies in the chemical and pharmaceutical
sectors. Furthermore, the Group successfully
defended its high market share in air and
ocean freight import services as well as ocean
freight export services. The Group was also successful
in achieving its goal of increasing the
proportion of customers from the SME sector.
Against a backdrop of the country’s strongest economic
performance since 2000, Panalpina achieved
very high growth in all core activities in Germany.
Major new orders were signed for ocean freight, and
also for air freight imports from Asia, particularly
in the retail and fashion sector. This positive trend
in freight volumes from Asia was echoed in the
transatlantic traffic between Germany and the US.
Significant new global accounts boosted air freight
exports to Japan by a third. At the end of the year,
Panalpina staff moved into the new, state­of­theart
logistics center in Hamburg. This has been built
to the highest safety standards, has direct access
to the port and will also act as a hub and depot for
the Group’s container business.
The UK and Ireland also saw very positive growth.
This was chiefly owing to a further rise in imports,
mainly from China, India and Vietnam. The segment
of smaller­to­mid­sized customers expanded
further, as it had in the previous year, while several
major customers were gained in the retail, chemical
and automotive sectors. Booming investment
in global oil production, and thus also in the North
Sea, led to sizeable new orders from suppliers to
this industry.
Italy and France, as well as the Iberian, Scandinavian
and Benelux countries, continued to perform
well in 2006, and contributed to the successful
result for this region. New business in the hi­tech,
retail and fashion and telecommunications sectors
resulted in a gratifying rise in revenues from
air and ocean freight.
Central and Eastern Europe
The gradually increasing financial strength of the
countries in this sub­region has led to a noticeable
rise in consumer spending, and consequently
greater demand for consumer goods. Panalpina
recorded a rise in imports, particularly from the
Far East.
The customer base, which used to consist chiefly
of companies from the hi­tech, automotive and
retail and fashion industries, expanded further. At
the start of 2006, new Panalpina branches were
set up in Warsaw, Wroclaw and Gdynia to serve the
Polish market.

North Africa
Panalpina’s main activities in this sub­region are
increasingly focused on Algeria and Libya, where
the rise in oil prices is boosting economic development,
and the leading international service companies
for the oil industry are numbered among
the Group’s customers. In 2006, the biggest contracts
consisted of forwarding several entire
extraction facilities to these two countries and to
Tunisia. Panalpina introduced a new weekly char­
ter flight from Luxembourg to Tripoli to cope with
the increasing volume of air freight being flown
to Libya. The local organization is currently being
restructured and strengthened, particularly the
sales division, with the aim of exploiting the growing
market potential in Algeria and Libya to an
even greater extent.
West Africa
Oil and gas extraction makes by far the most im­
portant contribution to the economy in West Africa,
and during the year under review the Group was
again able to profit from its decades of experience
in this sub­region. In addition to gaining new business
in Congo and Gabon, Panalpina succeeded in
extending a contract with a global oil company in
Angola for three years (with the option of renewing
for an additional two years), and also concluded
a number of deals with five other global leaders in
the oil industry. The Panalpina office in Cabinda
has been expanded, as there will be increased
extraction activity during the next two years, including
the planned extension from 9 to 17 offshore
facilities. A new branch was opened in Lobito,
and the airport office in Luanda is set for expansion
in 2007. In view of the market potential, the
number of people employed in Angola has
increased from 193 to 270. The supply service run
by Panalpina along the coast of West Africa to
serve oil and gas customers now uses six rather
than three ships.
Middle East
The Middle East is also seeing rapid growth in the
oil and gas industry, as well as investment in a
large number of infrastructure projects in a variety
of sectors as a result of rising oil revenues. In
2006, three regional oil companies extended their
contracts with Panalpina for the provision of
logistics services in Saudi Arabia and Qatar, while
two global computer and semiconductor manufacturers
chose the Group as their distribution
partner in the United Arab Emirates. In September,
Panalpina signed the lease for a large logistics
terminal in Dubai Logistics City, which will act as
a transit warehouse for the whole region when it
is completed at the end of 2007.
Central Asia
The newly set up back offices in Bahrain and Dubai
and the centrally­managed procurement system
for river transport capacity will help Panalpina
reinforce its already strong position in the rapidly
developing Central Asian oil and gas market, which
is in turn acting as a stimulus for new infrastructure
projects throughout the region. In addition to
winning new forwarding orders that included the
transportation of exploration facilities, Panalpina
successfully extended its contract with a leading
regional extraction company. More than 80 ultraheavy
consignments were shipped by river transport
– onto freight barges that had been specially
constructed the previous year – to extraction sites
under construction in the Caspian Sea.
Russia and Ukraine
Strong demand in the oil and gas industry also
enabled Panalpina to achieve robust growth in
Russia, but higher general freight flows also contributed.
Four major global customers from the
hi­tech and retail and fashion industries chose
the Group as new logistics partner in 2006. A new
ocean freight office was set up in St. Petersburg
to serve the local market even more efficiently.
Another new branch has been operational in Irkutsk
since October. Its main focus is on handling the
increasing number of project forwarding orders
connected with oil and gas extraction in Eastern
Siberia. In view of the ambitious extraction projects
off the island of Sakhalin, an oil company
extended its logistics contract with Panalpina and
a new deal was concluded with the global market
leader in extraction technology. The end of the
year has seen an official change of ownership for
several Russian extraction projects, but this had
practically no impact on Panalpina’s business, since
in most cases responsibility for the challenging
technological and logistics requirements remains
with the existing foreign consortium partners.
Reporting Regions
Panalpina Annual Report 2006 2

Reporting Regions
Noram Regional
Competence Center
Based in San Francisco
Net revenue: CHF 1,699 million
Headcount: 2,241
Branches: 78
28 Panalpina Annual Report 2006
North America
Break­even target clearly exceeded
Rising US imports as well as strong growth in the oil and gas sector
and demand for logistics services led to a 10.6% rise in revenues,
underlining the success of the restructuring measures.
The restructuring of the North American organization
implemented in 2005 can be regarded as a
great success. The target of breaking even for the
year under review was clearly exceeded, and the
business is now back in the black.
Slimmed­down management, new leadership
The US organization again achieved a noticeable
increase in profitability and sales through streamlining
regional management, reorganizing the local
and branch office structure, improving staff training
and consolidating business with similar requirements.
An able successor to Peter Merath, who
is taking well­earned retirement on 1 February 2007,
has been found in Karl Weyeneth (42). The latter
will push ahead with developing the regional business
further.
Big increase in US imports
The USA’s ever­expanding trade deficit was again
reflected in a sharp rise in imports during the year
under review, particularly from China, Japan, the
EU and Mexico. Growth in air freight significantly
exceeded market expectations. Panalpina accordingly
strengthened its sales efforts and services
in the freight import sector. Following a reassessment
of the most important transport routes, the
Group now considers Germany, Italy, France and
India – in addition to the countries mentioned
above – as key exporters to the US. Also here,
Panalpina strengthened its commitment to ocean
freight significantly, in view of the gradual rise in
volume and a gratifying improvement in margins.
New business in the oil and gas sector and
in logistics services
Two business areas turned in the strongest growth
in this reporting region, the first being the oil and
gas industry. Houston, one of the four global hubs,
benefited from increased investment activity in
this sector. Supply chain management was the other
main area in which marked growth was achieved
in all market segments. Contracts were signed or
extended for a number of major logistics projects
in Miami, on the West Coast and in Canada. The
latest IT applications for warehouse management
were rolled out at the distribution centers in Detroit,
Wichita (Kansas) and San Francisco. The guidelines
for the selection and organization of regional
subcontractors were reviewed and tightened
in order to ensure optimal quality and enhanced
efficiency.
SME segment again expanded
The strategic initiative to reach more customers
in the SME segment began to reap dividends in
the reporting year. Several valuable new contracts
were concluded with internationally active SMEs,
including some in the key hi­tech and automotive
industries, thanks to closer cooperation between
the sales and route planning teams.
More imports from Canada and Mexico
There was also a big rise in goods imported into the
USA by road, both from its northern and southern
neighbors. The majority of Canada’s positive trade
balance is attributable to exports to the USA,
while imports from Mexico also rose because many
American companies relocate their final assembly
from Asia to Mexican plants (or maquiladores) just
across the US border. Panalpina was therefore
able to continue its expansion in this area, making
good use of the new branches that were set up
near the border in 2005.

Central and South America
Rising exports and consistently high
freight volumes within the region
Major oil and gas production and mining projects, as well as
an upswing in exports and new logistics contracts in the hi­tech
and automotive sectors, helped Panalpina to achieve a revenue
growth of 1.2%.
Despite parliamentary and presidential elections in
several Central and South American states, economic
trends stayed more or less steady throughout
the region. Inflation remained under control,
i. e. ran at less than 5%, in all countries except in
Venezuela. The generally stable situation allowed
Panalpina to secure solid business growth in the
reporting year.
Ocean freight exports up by one third
Panalpina witnessed the biggest surge in the ocean
freight sector, where export volumes shot up by
a third year­on­year. Double­digit growth was also
recorded in air shipments. Though narrowly failing
to match the previous year’s figures, goods flows
within the region also continued on a strong up­
ward trend. On the imports front – except in the
case of specific brand­name items, luxury commodities
and hi­tech goods – Asia has now clearly
ousted Europe as the foremost supplier of finished
and semi­finished products to Central and
South America. Panalpina saw its business
expand most rapidly in the telecommunications
and automotive sectors and in the perishables
market (e.g. flowers from Columbia and asparagus
from Peru). The company was also entrusted by
one of the world’s largest computer manufacturers
with the management, as of January 2007, of its
entire warehousing and distribution logistics for the
Mexican market.
Major oil and gas as well as mining projects
Panalpina was able to expand its logistics operations
for a number of large­scale projects in the
oil and gas and mining sectors, with further growth
definitely on the cards for the future. A sizeable
new contract concluded with a regional oil company
enabled Panalpina to push up its market share in
Columbia and thereby assume market leadership
in yet another country. Panalpina’s many years of
experience with deep­water offshore rigs in Africa
also helped it to land a contract for the first highprofile
oil production scheme in Brazil. On one of
Peru’s biggest copper mining projects, Panalpina
is coordinating the entire supply chain for the
relevant building contractor. In the reporting year
alone, this involved the door­to­door shipment of
130,000 tons – equivalent to over 5,000 truckloads
– of material. Further investment, in the order of
several hundred million dollars, is planned by the
mining company with the aim of trebling production
at the site over the next three years.
New branches, centralized service provision
The wholly positive results in establishing ties with
small and medium­sized enterprises prompted
Panalpina in the year under review to extend its
network of customer­focused call centers, originally
set up in 2005, to cover a total of 12 countries.
2006 also saw the establishment of central finan­
cial service centers for the Andina and Central
American sub­regions, to complement the one
opened the previous year in Brazil. A similar center
is planned for the Mercosur area in 2007. The
new operational service center launched in Brazil
will be followed in 2007 by two further facilities
in Mexico City and Bogota. The reporting year also
saw a further refinement of the regional branch
network, with new offices starting up in Monterrey
(Mexico), Curitiba and Porto Alegre (Brazil). Also,
a new logistics warehouse was opened in Manaus
to meet all of the distribution needs for overland
shipments within Brazil.
Reporting Regions
Latam Regional
Competence Center
Based in São Paulo
Net revenue: CHF 670 million
Headcount: 1,988
Branches: 65
Panalpina Annual Report 2006 2

Reporting Regions
Apac Regional
Competence Center
Based in Bangkok
China / Taiwan Regional
Competence Center
Based in Shanghai
Net revenue: CHF 948 million
Headcount: 2,546
Branches: 92
0 Panalpina Annual Report 2006
Asia / Pacific
Continuing increase in goods flows
to and from the boom region
Spearheaded by China, most countries in the region continued
to register strong economic growth. Panalpina capitalized on the
favorable climate and on clients’ staunch confidence in the Group’s
services to record an impressive 15.6% growth in revenue.
Registering a 10%­plus jump in GDP, the Chinese
economy continued to boom in the reporting
year, with knock­on effects for goods flows across
virtually all sectors.
Palpable growth on all shipping routes
to and from China
On the back of the continuing upswing, Panalpina
recorded double­digit rises across­the­board
and some even massive increases in air freight
tonnages and ocean freight volumes. The number
of shipments in northern and central China was
nearly 20% up, with above­average rises in air
exports and ocean imports. The number of air shipments
transported from what is currently the most
dynamic economic region, China’s Pearl River
Delta area, actually rose by over a third. Panalpina
arranged some 200 full­freighter flights from
China on top of its regular freight shipments with
commercial airlines just to meet the demand
peaks during the busiest season. Despite the continuing
uptrend in freight volumes also on routes
to North America (+10%), Latin America (+20%)
and the Amec countries (+30%), the Chinese­
European links, which account for over 50% of
cargo, remain Panalpina’s main focus for the time
being.
Africa’s third­largest trading partner already
Having risen fivefold in only six years, China’s trading
volume with Africa hit a record USD 50 billion
in 2006, a figure set to double by 2010. This now
makes China the African continent’s third­largest
trading partner, after the USA and France, underlining
the growing importance of this trade route.
Panalpina’s decades­old African branch network
enables it to offer its Chinese customers a wide
variety of attractive forwarding and logistics services,
and the Group is ideally positioned to reap
further benefits from this burgeoning market in
the future. Nonetheless, the growing demand for
other African destinations will necessitate the
provision of new air and sea routes together with
a suitable enlargement of the network in the
medium term.
Sustained demand for logistics solutions
Panalpina witnessed an appreciable expansion
in business in all key industries. In the automotive
sector, where in 2006 China overtook Japan as the
world’s second biggest market and will become
a formidable player in the export market to Europe
and the USA, Panalpina recorded growing demand
for integrated supply chain management solutions.
In 2006, the company managed to clinch profitable
contracts with several global suppliers and a bigname
German automotive group. Elsewhere too,
specifically in the hi­tech, telecommunications and
retail and fashion markets, Panalpina was able to
strengthen its market position by renewing a number
of major contracts and winning new business,
with an increasing number of SMEs joining the key
global accounts in the Group’s customer base.
Demand was also on the rise in the children’s toys,
consumer goods and petrochemical sectors.

Production of extraction facilities climbing
Given the country’s huge energy demand, Chinese
energy companies are increasingly investing in
major extraction projects in different parts of the
world. While most of the investment to date has
been purely financial, the market still holds interesting
prospects for Panalpina’s Oil and Gas division
due to China’s growing prominence as a manufacturer
of production platforms. In the year under
review, Panalpina duly shipped some 30 complete
installations plus additional plant items (the total
weight exceeding 150,000 freight tons) by sea
from Shanghai to various sites across the globe.
New regional breakdown
To maximize the benefits afforded by China’s
immense economic momentum, Panalpina
further refined its regional structures. Following
the successful hiving­off of the China / Taiwan
sub­region in 2005, this was further subdivided
into three areas – the Chinese mainland (PRC),
Pearl River Delta (PRD) and Taiwan – in the reporting
year. Newly opened facilities in Weihai, Wu­
han and Zhongshan brought the total number of
field offices in China and Taiwan to 28. Mounting
demand from customers necessitated an extension
of the office and warehousing premises in
Hong Kong, a strengthening of the workforce
in Guangzhou and Shenzhen and the leasing of a
new warehouse in Yantian (Shenzhen). Additional
100%­owned operational branches were set up
in Nanjing, Ningbo and Chengdu, with further startups
planned for 2007.
Southeast Asia and Oceania
Though not quite on a par with China, economic
growth in this sub­region was generally healthy,
with a number of developing markets such as
Vietnam performing particularly well. The political
instability in Thailand and the Philippines had no
noticeable impact on cargo volumes. In both air
freight and ocean freight, Panalpina again managed
to outstrip the average market growth. A particularly
sharp rise was observed in air freight exports
on the main routes from Singapore, Bangkok and
Seoul to Europe and the USA. The strong market
growth also served to boost the volume of intra­
Asian air and ocean cargo flows. Major new
business won by Panalpina in the reporting year
included sizeable contracts with four globally operating
mobile phone producers and three hi­tech
manufacturers. Favorable trends also spawned
new business in the automotive industry (two new
key accounts) and the retail and fashion sector
(three new key accounts). Panalpina was also commissioned
by a global leader in the sportswear
market to develop and implement a concept for
the consolidation of freight from the region. Having
scooped two substantial new contracts in Singapore
and Indonesia along with a number of other
attractive deals in Vietnam and Thailand, the Group
was able to defend its market leadership in the
oil and gas industry. To enhance the services
provided for this sector also in Australia, a new
branch was opened in Perth.
South Asia
Benefiting from the extremely positive climate
in the similarly buoyant South Asian economy,
Panalpina managed to increase turnover in this
sub­region by well over a third in the year under
review. Business trends in India were particularly
dynamic (see report on page 32) and remain promising
well for the future. Particularly encouraging
were the substantial growth in air freight and
ocean freight volumes and the rising logistics
demand from global clients and larger SMEs.
Reporting Regions
Panalpina Annual Report 2006 1

Marketplace India
Soon to be the world’s
third­largest economy
India is seen as a challenging market for logistics companies,
as it requires a high degree of innovation and flexibility – especially
given the phenomenal year­on­year growth posted by the Indian
market. Panalpina has been running an operational organization
on the subcontinent for over nine years now, and is excellently
prepared for the forthcoming challenges.
2 Panalpina Annual Report 2006
India has always exerted a particular fascination
on the West. This started long before Hermann
Hesse’s books became popular, or famous musicians
undertook spiritual quests in the 1960s.
For centuries before that, the richness and variety
of this vast country drew people from all over the
world, so that the population is now a mixture
of countless ethnic, cultural and religious groups.
India has over one billion inhabitants who between
them speak about 20 regional languages and
over 1,000 dialects in addition to Hindi and English.
Hinduism is the most widespread religion, but
there are also significant Buddhist, Jain, Moslem,
Sikh, Christian and Jewish minorities. Religion
and State are now separate, and great emphasis
is placed on protecting the rights of religious
minorities. Given this immensely varied ethnic,
linguistic and religious backdrop, it is hardly surprising
that Indians are so open to the rest of
the world. That is one reason why the country has
been going through an unparalleled economic
boom in recent years.
India is one of the fastest­growing economies in
the world, having generated an annual growth of
8% for some years now. Political reforms, investment
in infrastructure and education, tax incentives
for foreign companies and the creation of special
economic zones (SEZs) should ensure that the
boom will continue for a long time to come. According
to a report by PricewaterhouseCoopers,
Mumbai
Pune
Bangalore
Tirupur
Cochin
Delhi
Ahmedabad Kolkata
Hyderabad
Chennai
Coimbatore
a total of EUR 18.7 billion will have been invested
in SEZs by 2009, creating up to 500,000 new jobs.
The biggest flows of investment funding are ex­
pected to go to the IT, pharmaceuticals, biotechnology,
textiles, petrochemicals and automotive
sectors, although service industries will also have
access to SEZs and the tax breaks they offer.
Sixty of these zones are currently being created
or are at an advanced stage of planning.

Heading for the top three
Many experts believe that India will be the world’s
third­biggest economy after the US and China in
about 25 years’ time. The Global Economics Paper
No. 152 (January 2007), published by Goldman
Sachs, predicts that the Indian economy will continue
to achieve annual growth of 8% until 2020,
and will overtake the US in terms of GDP before
2050. The authors base their forecasts on the
assumption that the government will go on introducing
measures aimed at stimulating growth. The
other reason for their confident prediction is the
fact that India is undergoing a structural, rather than
cyclical, upturn. This is thanks to a massive rise
in productivity on the part of private enterprise,
boosted by growing competition. At the root of this
progress lie economic and political reforms that
have led to the opening up of the Indian marketplace,
good education and high levels of investment
in information and communications technology.
From low­wage country to engine
of growth
For some time, India was seen as a low­wage country
for western companies that required low­priced manufacturing
of their products for the global market, but
this has changed over the years. Since the early 1990s,
the government has been pushing through political
and fiscal reforms leading to the opening up of markets
and greater foreign investment. This was accompanied
by the rise of the middle class, which is now estimated
at between 250 and 350 million consumers.
Today, well­known foreign companies manufacture
goods in India for the domestic market. These include
Rapid growth
Each year, the amount of land used for new construction
is roughly equal to the total area covered
by business premises four years ago. It’s a similar
story for telecommunications: today, the number
of mobile phones sold each month is greater than
the number of telephones available throughout
the whole country at the beginning of the 1990s.
Anyone who has recently visited an Indian city will
be able to confirm this. Mobiles are everywhere,
with people phoning each other wherever they are
and whatever they are doing. Urgently needed
investment in the road and rail networks is already
in the pipeline. Together with an almost inexhaustible
supply of labor in urban areas, this will ensure
that the Indian economy continues to power
ahead. According to Goldman Sachs, ten of the
thirty fastest­growing cities in the world are
already to be found in India, and by 2050 some
700 million people – more or less equal to the
population of Europe – will have migrated to urban
areas. There should therefore be no shortage of
workers for the growth industries and service
sector in the foreseeable future. At the same time,
major mobile phone manufacturers as well as their
suppliers. One example is a leading global mobile phone
manufacturer which has had a base in India for over
ten years and has built a 29,000 m 2 production facility
on a huge site between Bangalore and Chennai. Its
most important suppliers are also located onsite, delivering
goods to the production lines on a just­in­time
basis. This company currently employs 3,600 people
there on shift work, and it is set to increase the workforce
massively in the next few years. Like practically
all private companies, it has a strong commitment
to providing training and professional development
for its staff.
Marketplace India
Panalpina Annual Report 2006

Marketplace India
4 Panalpina Annual Report 2006
large sums are going to be invested in infrastructure,
residential construction and the service
sector.
Infectious enthusiasm
Panalpina in India
Panalpina has been operationally active
in India since 1999. The company employs
around 240 people and has branches in
Delhi, Bangalore, Chennai, Cochin, Coimbatore,
Hyderabad, Kolkata, Mumbai, Pune
and Tirupur. Education and training programs
are provided for newly­appointed staff.
These do not simply convey technical knowledge,
but also aim to familiarize the recruits
with the Panalpina Group, its culture and
values.
Panalpina is excellently positioned in India
thanks to its status as a service company
with outstanding local market knowledge and
a global network. Its customer base comprises
Indian companies as well as globally
active key customers from the high­tech,
automotive, oil and gas and healthcare sectors.
About 60% of business is for global
accounts, mostly in the form of logistics
contracts with major suppliers to the mobile
This isn’t just a question of numbers. “The sense
of excitement is tangible practically everywhere,”
says Kurt Breinlinger, Managing Director of
Panalpina India. “People know that they are part
of this success story and can make their own
contribution to it.” Euphoria isn’t the right word to
describe the state of mind of many Indians, particularly
those who belong to the rapidly expanding
middle classes. Instead, their enthusiasm
is founded on self­confidence and a tremendous
belief in the future. Whereas 20 years ago many
Indians emigrated for reasons of economic ne­
cessity, they are now staying in their homeland
in order to benefit from its increasing affluence.
“There is still enormous potential,” says Sundaresan
Ramakrishnan, Procurement Manager at Wipro
Infotech, one of Panalpina’s key customers.
“India has a huge, well­educated workforce, and
the conditions for economic and social progress
have never been so good. Right now there’s nowhere
else in the world I’d rather be than in India,”
he emphasizes, his body language confirming every
word. He concedes that there is still much to be
done, particularly in the areas of transport infra­
phone industry. Panalpina also looks after
major customers in the retail and fashion
segment, particularly fashion and sports
clothing – a sector with enormous potential
in India, since there are plans to build some
400 large shopping centers. More and more
joint ventures are also being set up between
foreign and Indian companies in the consumer
goods market.
structure and bureaucracy. “But these problems
have been recognized, and the authorities are
working hard to correct the deficiencies. At the
same time, private­sector initiatives are ensuring
that improvements are implemented faster,” he
states with conviction. Like many other companies,
Wipro has set up its own foundation to
respond to social needs and provide extra education
and training.
Discerning customers
Wipro Infotech belongs to the Wipro group, which
is one of the most successful corporations in India.
Its headquarters are in Bangalore – the stronghold
of the IT industry. The firm has been working with
Panalpina for over seven years. Nevertheless, it
makes high demands on the forwarding and logistics
company. Wipro’s client list includes all the
big names in the high­tech and IT sector, including
the main mobile phone manufacturers, as well
as banks, insurance companies and many others.
“We offer our customers integrated solutions,
including systems maintenance. The hardware
comes from countries including the USA, Ireland,
Hong Kong and Malaysia. Our customers are
used to receiving first­class products and services.
That’s why we expect the same from partners
such as Panalpina. We cannot afford to compromise
on quality!” The high demands that Indian
Logistics has an immensely important role to
play in the Indian market. Poorly developed
transport infrastructure in many areas, together
with bureaucratic hurdles, present quite
a challenge in terms of expertise and flexibility,
particularly since the rapid availability of
products and low costs are decisive factors
in such a highly competitive market.

companies place on themselves and their business
partners are part of their recipe for success. “We
find ourselves in an incredibly competitive environment.
Lead times for new products are extremely
short and there is great pressure on prices. A company’s
choice of logistics provider and the services
it offers therefore contribute directly to a company’s
success or failure.” The Wipro manager
leaves us in no doubt that in India people don’t
rest on their laurels but constantly seek new and
cheaper solutions. The services provided by partners
are regularly reviewed and evaluated, in all
areas. A good sales organization is important for
acquiring customers, but if it is to keep them,
a company needs to demonstrate operational
excellence.
India – more than just IT
Not long ago, India was equated with the IT sector
and perceived chiefly as an offshore center for
the West. This no longer applies, although information
technology is still a vital contributor to the
Indian economy. The IT company Infosys, for ex­
ample, has regularly beaten its own records for
years. Founded 24 years ago with 200 employees,
the Nasdaq­listed company now has a workforce
of over 20,000. Its huge campus in Bangalore
contains 43 buildings set in parkland, including
offices, fitness centers, training rooms, leisure
facilities and banks. Training and professional de­
velopment have high priority, with every employee
having to complete annual training courses and
tests. The whole economy benefits, since foreign
companies, which invest enormous sums, also
depend on having access to a good supply of welltrained
employees. The time is now over when
India’s main attraction was its low wages. The huge
domestic market with its sizeable middle class
acts as a magnet for international companies from
sectors such as telecommunications, high­tech,
automotive or fashion and sports clothing. All these
companies, along with the products and the hundreds
of thousands of jobs they create, are helping
to ensure that India’s progress towards being
a global economic power is proceeding rapidly.
Marketplace India
Panalpina Annual Report 2006 5

“Rapid tonnage growth:
one million TEUs exceeded
for the first time ever.”
6 Panalpina Annual Report 2006

Core Activities
Panalpina Annual Report 2006

8 Panalpina Annual Report 2006

Air Freight
Successful expansion of market
position: sharp rise in tonnage
Panalpina transported a total of 874,000 tons of air freight in 2006
to confirm its position as the global number three in the sector.
This increase of 10.5% being substantially ahead of growth in the
market as a whole, Panalpina continued to increase its market share.
As expected, positive economic trends throughout
the world generated further increases in air
freight volumes during the year under review. And
yet again, Panalpina succeeded in growing faster
than the market as a whole.
Asia: still the strongest growth region
As production centers in Asia continue to increase
in importance, flows of goods from this region
once again posted the largest increases in 2006.
Panalpina succeeded in increasing its market
shares, especially on the Asia – EU and Asia – North
America routes. There has also been a sharp rise
in domestic traffic within China and Asia, which
could well become even more important in the near
future. The same applies to the China – Africa route,
on which Panalpina opened a new link in 2006
via Dubai. Further links are planned in the medium
term.
Trouble­free high­season coverage
Several improvements – particularly affecting the
transpacific timetable – were introduced in the
light of changes in demand and increased network
reliability. As a result of targeted capacity increases
in the ad­hoc chartering, and also thanks to improved
planning processes, all the demand peaks
in the 2006 high season were once again weathered
without difficulty. Increased oil and gas extraction
activities led to a noticeable increase in the
demand for specialized air freight capacities on
routes to various remote destinations, principally
in Africa and Central Asia.
Increased concentration on preferred carriers
Panalpina does not own any cargo aircraft. Instead,
in accordance with its asset­light business model,
it cooperates with the best airlines throughout the
world. During the year under review, in line with
its proven purchasing strategy and carrier policy, the
Group concentrated still more closely on a small
group of carefully selected preferred carriers. There
was an increase in the proportion of overall capaci­
ty accounted for by commercial airlines (operating
on fixed timetables), whereas the percentage
of own­controlled capacities (fully chartered by
www.panalpina.com/air
Panalpina) in their entirety slightly fell. Despite
this, the own­controlled network again generated
significant added value for certain customers,
in particular those sending freight at peak times
and those dispatching special freight or consignments
to remote destinations. Having this freight
capacity at its sole disposal makes Panalpina the
only global carrier with a charter division – operating
24 hours a day and 365 days a year – available
to customers at any time, also for ad­hoc and
emergency assignments.
Further refinement of services and processes
During the year under review, in the light of
increased demand for individual customer solutions
rather than predefined products, Panalpina increased
the flexibility of its product structure and
continued to optimize its operating processes.
With the objective of matching the purchase of
commercial freight capacities still more closely
with individual customer needs, decisions on purchasing
commercial capacities were delegated
to individual countries, increasing their customer
proximity. Hubs and gateways, with the exception
of Luxembourg and Dubai, were re­integrated
into the local organizations. The control and management
of overall air freight capacities, however,
remains with the tried­and­tested central capacity
management. This is supported by Panalpina’s
Airwarder software, which guarantees optimum
capacity utilization and full coverage at peak times.
Estimated air freight growth 2006–2010
Growth in percent
5.0
Transpacific
Source: IATA
4.1
North America-
Latam/Caribbean
6.7
4.0
Transatlantic
3.8
Europe–Latam/
Caribbean
Intra-Latam/
Caribbean
3.7
Intra-Europe
4.7
4.7
Europe–Africa
Africa–Europe
5.4
Europe–Asia
Asia–Europe
Europe–Middle East
Middle East–Europe
6.6
Intra-Asia
Core Activities
Panalpina Annual Report 2006

Core Activities
40 Panalpina Annual Report 2006
Ocean Freight
Rapid tonnage growth: one million TEUs
exceeded for the first time ever
Thanks to a 17.4% increase in volume – significantly ahead of market
growth – to 1,084,000 TEU Panalpina remains the world’s fourth­
largest ocean freight provider. Its attractive range of services has
been further expanded.
As in previous years, the biggest share of the global
volume growth in the year under review was
generated by the three most important routes:
westwards from the Far East, eastwards across the
Pacific, and freight movements within Asia – reflecting
the huge significance of Asia, and of China in
particular. But transatlantic routes also developed
well, as did those linking Europe and Asia to Latin
America.
Successful capacity management
Freight capacities on transport routes in heavy
demand are regularly in short supply at peak times,
which means that constructive long­term relations
with selected carriers – which Panalpina has maintained
for many years – play a key role. Some 55%
of the Group’s overall ocean freight volume is now
transported by six global shipping companies, all
of which feature in the top­ten sector. The systematic
care and maintenance of these partnerships
with selected shipping lines facilitates growth
on all routes, while simultaneously ensuring that
Panalpina can deliver services at its customary high
level. In order to maintain its leading competitive
position, Panalpina assigns a high priority to joint
measures designed to increase efficiency and
productivity.
Estimated ocean freight container growth
2005–2009
Growth in percent
7.0
Noram
9.1
Latam
7.7
West Europe
10.7
Africa
10.2
Middle
East
19.7
East Europe
10.9
South Asia
Source: Drewry Container Market Review, 2005/2006
11.7
Far East
6.9
Oceania
10.5
Southeast Asia
Dynamic market development
The various markets developed along different
lines during the year under review. Rate erosion on
the route from the Far East to Europe during the
first half­year was countered by carriers with a successful
attempt to restore rates to profitable levels
as freight volumes increased. On some subsidiary
routes, however, freight rates came under increased
pressure, because the deployment of new, ever
larger ships on the principal routes – in a cascade
effect – displaces the ships that used to be the
largest and forces them onto less important routes,
where – in their turn – they have the effect of in­
creasing capacity. In these difficult market conditions
Panalpina succeeded in supporting both
shipping lines and customers by means of cooperative
approaches.
Improvements to service and organization
A closer focus on the less­than­container­load
(LCL) market segment brought Panalpina several
significant items of new business in 2006, mainly
because of the heavy demand for its own consolidated
containers. The Group is thus well placed
to continue to increase its market shares in this area
in 2007. Taking account of all regional needs and
market potential, the Group intends to broaden its
existing range of services significantly in 2007.
Preliminary work on this progressed well during
2006. As a side­effect of the successful restructuring
in North America in 2005, ocean freight also
benefited in 2006 from the initial increases in efficiency
and productivity – as well as from improved
customer service. Further progress in these areas
is expected in 2007.
www.panalpina.com/ocean

Panalpina Annual Report 2006 41

42 Panalpina Annual Report 2006

Supply Chain Management
Logistics revenues boosted
by attractive solutions
The net revenue growth of 4.7% to CHF 1,196 million, is proof that
Panalpina’s logistics services enjoy great popularity among customers.
And thanks to new and innovative approaches, the Group still sees
considerable potential for the future.
The unbroken trend towards outsourcing is making
production and supply chains ever more complex.
Against this backdrop, net forwarding revenue
in supply chain management has surged forward
again in the year under review thanks to a large
number of new contracts (see Reporting Regions).
Broad range of logistics services from
a single source
Panalpina offers comprehensive solutions in the
field of logistics and supply chain management,
but only in conjunction with air freight and ocean
freight. This interlinking of its three core activities
is a central element in Panalpina’s strategy. Experience
has shown that this approach promotes
customer loyalty, generates synergies and taps
into new sources of potential for all three areas
of activity. The logistics services offered comprise
warehousing, secondary distribution, just­in­time
and just­in­sequence delivery, along with addedvalue
services such as order management, re­
packaging, order picking, labelling and reverse
logistics.
Innovative direct­to­market solutions
In 2006, Panalpina scored resounding successes
with a number of new approaches, offering clients
more flexible freight distribution while reducing
their working capital. With this “direct­to­market”
concept, clients can dispense with high­risk warehousing
because Panalpina looks after the delivery
of the products right through to the end­customer
while “storing” and controlling stocks “on the way”,
i.e. during the transportation flow. This approach
is proving to be highly popular in the hi­tech and
retail and fashion sectors in particular. For example,
the Group delivers a computer manufacturer’s
products right to the consumer’s front door in
Europe, and ships bulky hospital scanners weighing
several tons each straight to American and
Australian hospitals, where it also supervises the
laborious task of installation.
IT backed monitoring of the entire supply chain
Nowadays, real­time monitoring of freight across
the whole supply chain is essential, not only in
complex direct­to­market contracts but also in more
straightforward logistics operations. This is why
Panalpina’s sophisticated IT systems are responsible
for roughly half of customer contracts being
clinched. The Group offers Internet­based consignment
tracking, reporting and logistics management
software plus integrated applications for order
and warehouse management. Any discrepancy
in the transport chain, however slight, causes the
event management system to send an automatic
message to the client. Transparency is enhanced
by stock control and supply chain management
visibility applications.
Lead logistics provider vs. contract logistics
Asset­light flexibility rather than
high­risk infrastructure
Unlike its chief competitors, who use their own
infrastructure to provide most of their contract logistics
and are often forced into risky investments,
Panalpina consciously minimizes the amount of
resources tied up by its supply chain management
operations. As lead logistics provider, it focuses on
the service aspects of these complex contracts,
delegating subtasks, wherever possible, to a select
group of first­class supply partners. In successfully
implementing this strategy, the Company draws on
many years of experience in subcontractor management
across all geographical regions. Not only does
this flexible approach minimize capital­intensive
investments in warehouses, truck fleets etc., it also
affords Panalpina a competitive edge by enabling the
Company to respond swiftly to market­driven shifts
in demand.
www.panalpina.com/logistics
Core Activities
Panalpina Annual Report 2006 4

“The balance between large,
medium and smaller customers
enables Panalpina to pursue
sustained growth.”
44 Panalpina Annual Report 2006

Customer Groups
Panalpina Annual Report 2006 45

46 Panalpina Annual Report 2006
Customer Groups
Throughout the world, Panalpina serves diverse customers in a broad
range of sectors. At the same time, it focuses on a number of highly
globalized key industries with special requirements in terms of forwarding
and logistics.
The key industries in which Panalpina has sector
experience, that in some cases goes back several
decades, are hi­tech, automotive, healthcare and
retail and fashion. Additionally, the Group has for
years been the world market leader in the field of
logistics solutions for the global oil and gas industry’s
supply chain. What all these sectors have in
common are complex, largely outsourced production
processes, and distribution channels that are
broadly diversified on a global scale. They therefore
offer market potential that will grow in the
medium to long term, and, as such, they are crucially
important to Panalpina.
Balanced customer structure for sustained
growth
Panalpina’s clients include companies ranging in
size from internationally active small or mid­sized
to major global corporations, many of which are
world market leaders in their respective sectors.
This balance between smaller, medium and large
customers is strategically important to the Group
and has been successfully maintained for a number
of years. It enables Panalpina to pursue balanced,
sustained growth.
Based on this balanced structure, the customers,
in turn, can often profit from value­added knowledge
transfers which Panalpina offers from its
broad experience in all areas of freight transport and
supply chain management. Thus also smaller to
medium­sized companies make regular use of the
know­how and the infrastructure which Panalpina
has built and successfully implemented in the
course of challenging, tailor­made and often
ground­breaking logistics solutions for its global
key customers.
Market Focus Oil and Gas
USD 6.2 trillion investments until 20 0
“Total investment in the global oil industry will amount
to almost USD 3.1 trillion over the period 2001– 30,
with 72% of this devoted to exploration and development
for conventional oil. Cumulative investment in
the natural gas supply chain over this period will also
be USD 3.1 trillion, more than half of it in exploration
and development. A substantial proportion of all this
energy investment is required simply to maintain
the present level of supply. Oil and gas wells are depleting,
power stations are becoming obsolescent
and transmission and distribution lines need replacing.
Much of the new production capacity brought on
stream in the early years of the projection period will
itself need to be replaced before 2030. Extraction
costs, including those incurred in exploring for
reserves, will account for most of the investment in
the fossil­fuel industry.”
International Energy Agency:
World Energy Investment Outlook

Oil and Gas Hi­Tech
Having been concentrating on the oil and gas
industry for four decades, Panalpina is today’s
global market leader in supply chain solutions
for this sector.
The transportation needs of the oil and gas industry
require highly complex solutions and specialist
skills. Based on its leading market share and solid
customer relationships, its 40 years track record
and reputation as well as its sector capabilities
(e.g. specialist engineers), Panalpina is in a uniquely
strong position globally to provide freight forwarding
services for this industry. In 2005, the Group
has further strengthened its position through two
bolt­on acquisitions in Singapore and Norway.
Panalpina’s oil and gas offering is managed through
a global industry­focused structure via its dedicated
competence center. The Group’s range of
services is predominantly covering the upstream,
i. e. exploration­related activities. These high­quality,
safe, and environmentally responsible services
go well beyond traditional freight movement and
include complex supply chain solutions as required
by customers serving the industry.
The continued high level of oil prices, geopolitical
constraints, new technologies and rising concession
costs have led many oil companies to make
enormous long­term investments and commitments,
which positively impacts Panalpina’s growth
opportunities in the oil and gas sector. The management
believes that further growth opportunities
will come from the relatively untapped markets
such as Russia, Central Asia, and North Africa,
where Panalpina has already established its presence
in order to capitalize on these developments.
Within the hi­tech segment, Panalpina’s global
reach and industry competence offers complete
supply chain integration and management.
Adoption of new technologies and universally
growing broadband and mobile connectivity
have meant that shorter product life cycles have
become inevitable realities. These, in turn, require
more complex and sophisticated transportation
and supply chain services by the carriers. Typically,
the hi­tech industry requires logistics chains
linking the industry’s key East­Asian production
sites with distribution operations in the rest of the
world.
Panalpina is capable to meet the needs of hi­tech
industry customers mainly due to its global reach
and industry competence. It offers them not only
transport services ensuring timely delivery of parts
and products, but also integrated logistics solutions,
from procurement to warehousing and distribution,
with TAPA (Technology Asset Protection
Association) certification for Panalpina­operated
warehouses and logistics centers.
Unabated technological innovations combined
with the increasing potential of the world’s emerging
markets to catch up with the global leaders
cause solid growth rates in most fields of the
hi­tech industry.
Selected hi-tech market segments
Forecast of worldwide development 2005– 2010
2005 2010
www.panalpina.com/oil www.panalpina.com/hi-tech
937 million
1369 million
+46 %
210 million
460 million
+119 %
190 million
440 million
+131%
15 billion
42 billion
+180 %
Computers in use
worldwide
Source: eTForecasts
Broadband connectivity
of households
Source: Deloitte Research
Mobile phones GSMbroadband
subscribers
Source: Informa Telcoms & Media
Mobile entertainment
market potential (in USD)
Source: Informa Telcoms & Media
Customer Groups
Panalpina Annual Report 2006 4

Customer Groups
48 Panalpina Annual Report 2006
Healthcare
To its customers from the healthcare sector,
Panalpina provides just­in­time delivery to globally
located destinations and the highest standards
for safeguarding the integrity of pharmaceutical
products in transport.
The healthcare industry is facing increasing pressure
to grow profits by bringing new products
to the market in a faster and more efficient way.
Growing research and development efforts and
the need to maintain product integrity and security
lead to rising logistics and transport costs.
Panalpina considers this to be an interesting business
opportunity, also because of the boom to
be expected as the developing economies increase
the per­capita spending on healthcare facilities.
Panalpina offers flexible transportation and logistics
solutions by giving the customer the choice of
mode of transportation depending on urgency and
consignment size: air freight, ocean freight, road
and courier services. Panalpina also offers valueenhanced
services, such as order confirmation,
consignment documentation and forwarding procedures
that meet the industry’s hygiene, temperature
and pressure requirements through the
entire supply chain.
Focus on the market
Medical technology – a growth sector
“From a global perspective, medical technology is
an extremely high­potential sector of industry for
various reasons. In developed economies, by far the
most important driver is the aging of population and
the associated increase in demand for medical care
and services. (…) The extra demand generated by
the aging of the population, coupled with technological
advances, adds up to almost inexhaustible
demand potential for med­tech products. (…) Fast
developing emerging economies – such as China
and South­East Asia – constitute enormous growth
markets for the medical technology.”
UBS Outlook 2 / 2005
Automotive
Panalpina renders its automotive industry 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 a lean inventory management.
The challenges of the automotive industry are
just­in­sequence and just­in­time supply systems,
where the delivery of components from a variety of
companies based in different countries must be
carefully coordinated to ensure a smooth manufacturing
and assembly process. This challenging
task requires expertise in information design, process
planning and operations efficiency.
Panalpina’s services aim to deliver quality solutions
at the lowest costs with the flexibility demanded
by the world’s leading vehicle manufacturers and
their suppliers. The Group offers the development
and implementation of fine­tuned supply chain
solutions with integrated air and ocean freight services
to the automotive industry to ensure the
proper functioning of such complex supply chains.
It also offers automotive companies comprehensive
service packages for the operation of distribution
centers and warehouses, thus optimizing
the customers’ supply processes and data transfer.
www.panalpina.com/healthcare www.panalpina.com/automotive

Retail and Fashion
Panalpina provides transport and logistics services
tailored to the needs of the retail and fashion
industry, which is characterized by constantly
changing trends, seasonal demands and short
delivery periods.
Few industries are as dynamic or energetic as the
retail and fashion sector with its short­lived waves
and trends, its fast changing demands and its
ever tighter deadlines. This exceedingly globalized
industry needs time­definite delivery from manufacturing
sites predominantly located in Asia to
Europe and America.
Panalpina’s retail and fashion competence center
provides a large global customer base of both suppliers
and retailers. The Group’s tailor­made transport
and logistics services address the special
requirements of this industry by ensuring time­
definite delivery and allowing customers to track
the progress of their shipments at all times. As
an experienced provider of complex supply chain
management concepts, Panalpina’s solutions
include services such as warehouse management,
order­picking, packaging and repackaging, labelling,
vendor and order management and inventories.
Focus on the market
Accelerated growth forecasted
“The global apparel, accessories and luxury goods
market is forecast to accelerate its expansion, with
an annual growth of 4.4% for the period 2004 – 09
set to carry the market to a value of USD 1.3 billion by
the end of 2009. This enhanced performance will be
derived from the increasing strength of the menswear
sector, added to the improving consumer spending
patterns in Europe. Further growth will stem from
the Asia­Pacific’s developing markets. The performance
of the global textiles market is forecast to
accelerate, with a growth rate of 3.6% for the period
2005 –10 expected to drive the market to a value of
USD 290 billion by the end of 2010. Comparatively,
the European and Asia­Pacific markets will grow with
1.7% and 4.2% respectively over the same period,
to reach values of 74 billion and 140 billion in 2010.”
Datamonitor Market Research Profiles: Global
Apparel, Accessories & Luxury Goods Market
Overview, May 2005, and Global Textiles Market
Overview, October 2006
www.panalpina.com/retail
Industrial Projects
Based on its worldwide organization and its air
and ocean freight transportation capabilities,
Panalpina offers integrated logistics turn­key
project forwarding and management services
to various industries on a global scale.
The construction of plants and other big projects
as well as the manufacturing of bulky equipment
and modules may present very challenging and
complex logistics and forwarding problems as they
often require the transportation of very heavy and
oversized loads.
Panalpina’s dedicated project competence center
under the name of Panprojects is based in Bremen
(Germany) and encompasses more than 150 specialists
worldwide. They develop transportation
solutions that allow fast and secure shipment of
plant parts and other bulky and oversized goods
used in a great variety of projects.
Panprojects provides its tailor­made services to
various engineering procurement and construction
companies. It also specializes in serving the mining
industry and their suppliers on mining emplacements
and extensions. To the power and energy
sector, Panprojects provides solutions for the
supply of large generating plants and wind parks.
Moreover, it offers its services to miscellaneous
manufacturers and suppliers of other industrial
plants, heavy and over­dimensional equipment
and modules.
www.panalpina.com/projects
Customer Groups
Panalpina Annual Report 2006 4

“Panalpina sees entrepreneurial
responsibility as an all-embracing
obligation that becomes part
of the daily lives of both management
and employees.”
50 Panalpina Annual Report 2006

Sustainable Growth
Panalpina Annual Report 2006 51

Sustainable Growth
52 Panalpina Annual Report 2006
Quality, Security, HSE: Key factors for
robust development
Panalpina sees no contradiction
between an entrepreneurial attitude
and sustainable action. The Group
bases its operations on economic,
security­focused and ecological principles
that foster its long­term business
success in as comprehensive
a way as possible.
Panalpina sees entrepreneurial responsibility as
an all­embracing obligation that becomes part
of the daily lives of both management and employees.
The company’s organizational structures
and processes are therefore defined with a view
to meeting these demands, particularly in terms
of quality, security, health, safety and environmental
protection.
Quality for satisfied customers
Panalpina is single­minded about ensuring customer
satisfaction by boosting the efficiency and
quality of its services; the quality system is therefore
one of the Group’s key management tools.
Panalpina is constantly checking its processes as
part of a proactive strategy to ensure compliance
with the latest industry standards in the face of
changing market conditions and to secure operational
excellence in all areas.
The Group­wide quality standards, applied uniformly
to all business processes, are enshrined
in Panalpina’s integrated management system.
Geared chiefly to customers’ needs, this system
details the organizational and operational aspects
of the company’s activities and specifies standards
and guidelines for all parties involved. In order
to give employees even more rapid access to all
documents in the management system (and in
the firm’s comprehensive intranet) that are relevant
to their work, Panalpina in 2006 was one of the
first companies in Switzerland to introduce a search
application based on the latest Google technology.
The integrated management system also forms
the basis for Panalpina’s certification to ISO 9001
standards. Following the upgrade of the quality
label to an across­the­board Group certificate for
all primary markets throughout the world in 2005,
the Group has in the year under review developed
a multi­phase internal audit training program for
all of its quality managers worldwide.
Awards: High-profile prizes awarded to Panalpina
by customers and trade media
2006
2005
2004
10
5
3
The outstanding quality of Panalpina’s services is
receiving acclaim from a growing number of bodies
around the world. Among the awards it regularly
receives, the Group is particularly proud of those
given by customers or the international trade
media. Ten awards were received in the year under
review. For example, the global audience of three
leading trade journals chose Panalpina as “Project
Forwarder of the Year 2006”.
Security of entrusted goods
Panalpina has always directed particular efforts
towards risk minimization, damage prevention and
the maintenance of stable and predictable operational
procedures. An integral approach is adopted
in tackling the key issue of security, which is systematically
addressed in all processes and departments
to guarantee the smoothest possible
completion of contracts and the safety of goods
entrusted to Panalpina.

The Group regards its investments in security as a
means to protecting its business base in the long
term and as a foundation for sustainable development.
Panalpina’s security structure is based on
national and regional security officers, whose cen­
tral management reports directly to the Executive
Board. A broad­based raft of measures relating to
infrastructure, information systems, service providers,
personnel and clients ensures compliance
with the most stringent security standards.
Panalpina supports various national and international
security initiatives, including AMS, Air­AMS
and the new EU directives, while observing numerous
voluntary standards such as TAPA, BASC,
C­TPAT, CSI and FAST. The company also collaborates
on all forwarding­related crime prevention
and anti­terrorism schemes. The warehouses operated
by Panalpina at its hubs meet stringent TAPA
requirements, while those used for storing food and
pharmaceutical products are even FDA­certified.
Moreover, through its subcontractor management
system, Panalpina takes every precaution to
ensure that its numerous agents and service providers
also abide by the stringent security requirements.
The annual assessment of their safety
regime is one of the key criteria for their classification
as a preferred Panalpina service partner.
The intensive efforts made as part of the Groupwide
loss prevention program were rewarded
with success once again in the year under review.
Consignment loss and claim figures, which for
years have been in the fractions of thousandths, fell
once again relative to the steadily rising number
of shipments.
Health, safety and environment
As a responsible transport and logistics firm,
Panalpina regards health protection, safety at work
and environmentally responsible action (HSE) as
factors of strategic importance in the context of
sustainable growth. The Group therefore gives
a high priority to defining, implementing and monitoring
relevant guidelines and standards as well as
ensuring that its staff receives continuous training.
These initiatives are implemented at national level
by HSE managers, who instruct their colleagues,
oversee compliance and promote an HSE culture
within the company.
As a founder member of Freight Forward International
(FFI), Panalpina painstakingly applies
the association’s ecological guidelines in order
to minimize the environmental impact resulting
from its business operations. From the very outset,
Panalpina played an active role in the creation
and refinement of the FFI Environmental Code
of Practice.
Further progress has been made at various levels
in this area during the 2006 financial year. For
example, the national organizations in West Africa
North were granted ISO 14001 and OHSAS 18001
certification: a great achievement considering
the highly demanding transport projects and
the rudimentary infrastructure in these countries.
The same certificates were also awarded throughout
the Middle East, UK and Ireland as well as
in Central Asia. Many of the countries throughout
the world which already hold certificates passed
surveillance audits by external auditing bodies.
HSE is particularly important in the oil and gas
sector, which has for many years imposed the tightest
safety and environmental protection requirements
on its suppliers. As a rule, compliance with
these requirements is the key criterion when contracts
are awarded. Panalpina’s first­class reputation
in this area was confirmed by its success
in winning various contracts in 2006. For example,
a dominant world player in supplying the oil and
gas industry handed over the entire operation of its
hub center in Moerdijk (Netherlands) to Panalpina,
and also commissioned it to carry out other logistics
and distribution activities – not least because
of Panalpina’s convincing HSE programs. The Group
also was awarded the contract for an Egyptian
project being undertaken by one of the world’s
largest oil companies. In this case the client went
out of its way to praise Panalpina, describing the
HSE plan it had submitted as by far the best that it
had ever seen in any of its worldwide projects.
www.panalpina.com/quality
www.panalpina.com/security
www.panalpina.com/hse
Sustainable Growth
Panalpina Annual Report 2006 5

Sustainable Growth
54 Panalpina Annual Report 2006
Employees: At Panalpina, people use their
brain power to move the freight
In spite of the latest computer and
transport technologies, forwarding and
logistics remains a people business.
That is why Panalpina regards its
employees as its most important
capital, and as crucial to its success.
Panalpina’s first­class reputation with its customers
is based on the passionate determination of its
staff to find and implement the very best solution to
any transportation and logistics problem, however
difficult it might be – true to the company’s motto:
“A passion for solutions”.
The workforce is a decisive competitive
advantage
Panalpina’s lean, asset­light business model
means that our services are largely based on purchased
freight capacities and rented infrastructure.
This makes the international coordination
and supervision of our selected subcontractors a
complex and demanding task, requiring experience,
creativity and a sense of responsibility at all hierarchical
levels. Panalpina has the necessary qualified,
motivated employees who are adept at
nurturing good customer relations – and who also
have the ability to react quickly and flexibly. They
guarantee operational excellence, thus making a
decisive contribution to our corporate development.
Natural diversity thanks to equal opportunities
Diversity and equality of opportunity at Panalpina
are the natural consequences of the firm principle
that posts are only filled by the best­qualified candidate.
The old cliché, for example, that haulage
is a classic “male sector” is refuted by the Group’s
high proportion of female staff, and by the fact
that Panalpina is the first global transport and logistics
company to have a female CEO. Group
management has a broad international base with
15 nationalities represented in the top management
(Executive Committee, Regional CEOs and
Managing Directors), of which two­thirds are
non­Swiss nationals. Four fifths of the total workforce
are aged between 25 and 45, while the rest
are about equally divided between under­25 and
over­45. Half of the employees can look back on
over five years’ service with the Group.
Employees Number Women Men
Europe / Africa / Middle East / CIS 7,529 38% 62%
North America 2,241 56% 44%
Central and South America 1,988 52% 48%
Asia / Pacific 2,546 50% 50%
Total 14, 04 45% 55%

Nationalities in top management
Number
Switzerland
Germany
USA
Netherlands
France
China
Canada, Columbia, Denmark, Italy, Panama,
Sweden, Spain, South Africa, United Kingdom
Fostering further training at all levels…
About one third of all Panalpina staff hold managerial
functions, in which they are supported
by guidelines and tools that are uniform throughout
the world. These standards include annual meetings
with all employees to discuss their progress
and their careers, as well as the active encouragement
of initiatives to stimulate feedback and
suggestions from the workforce. Under the name
Panacademy, the Group has for many years
offered a widely diversified range of professional
training courses, enabling its employees to bring
their expertise up to the highest industry levels.
… including management
It’s not only employee training that Panalpina takes
seriously: it also offers its many talented managers
a program designed to develop their potential.
During the year under review, 172 managers completed
the first module of this tried­and­tested
training package, while 56 completed the second.
The launch of a third module is scheduled for
2007. This will offer supplementary courses to
top managers, from managing director level up.
3
10
2
18
1 1 1 1 1 1 1 1
1
Participants in training programs for managers
North America
Central and South America
Asia / Pacific
Head office (Basel)
Europe / Africa / Middle East / CIS
5
3
19%
14%
12%
38%
17%
Sustainable development of management
potential
In addition, 2006 saw the initiation of a structured,
quality­controlled program to groom the successors
to the Group’s current generation of managers.
With the assistance of an external assessment
company, this is designed to ensure that wherever
possible, key managerial positions can be filled
even more successfully with suitable internal
candidates. This places the retention of internal
expertise and the sustained development of experienced
middle and senior managers on a sound
long­term footing.
Performance­related salary models
Panalpina is seen as an attractive employer within
the sector, not least because due to its willingness
to reward above­average performance. Panalpina’s
competitive salary models are based on performance
incentives linked to the operating targets
of the Group, the region and the relevant business
unit, while also taking account of individual performance
targets. Senior managers were allocated
share options at the time of the Group’s flotation in
2005 to enable them to participate in its success,
and in 2006 this was followed by a similar program
for managers on the next level down (see page 65).
This also met with great interest.
www.panalpina.com/jobs
Sustainable Growth
Panalpina Annual Report 2006 55

Sustainable Growth
56 Panalpina Annual Report 2006
Information technology: Powerful, modern
and secure systems
Efficient forwarding and logistics
operations would be impossible without
rapid global transmission of in­
formation. In this field too, Panalpina
is recognized as a leader and continues
to invest in expanding its market
position.
Smooth transportation flows save costs, reduce
environmental pollution and help optimize the use
of employees’ competence. Panalpina’s leading
position in developing and implementing logistics
software is an important pillar of sustained growth
and fosters long­term added value for its shareholders.
For decades, Panalpina has been one
of the principal players in the use of information
technology in the transport and supply chain
management industry. Since the middle of 2005,
the Group has been gradually replacing its legacy
systems with the latest software, based on service­oriented
architecture (SOA), in the interests of
sustainable development. This gives the Company
the flexibility it needs to map specialized services
and product requirements in the context of modern
logistics.
A common platform for air and ocean freight data
The worldwide launch of the two systems Airwarder
and Seawarder (for air and ocean freight respectively)
that Panalpina has developed for an efficient
handling of purchasing, managing and billing of
freight capacities, took place on schedule in 2006.
This was the start of a “new era” for Panalpina,
which plans to continue gradually replacing some
older IT systems with software that operates on
a new open architecture. Using the FOS forwarding
system, another in­house creation, all information
flowing in from operational application systems (air,
ocean and land transport plus logistics) is stored
and linked­up in a central database. This technology
enables parallel developments and the rapid,
secure and productive use of new applications.
Following the global launch in 2005, a new FOS
release with additional features was rolled­out
worldwide in the year under review, offering further
improvements to productivity, data quality and
customer service.
Sector­specific logistics solutions
Panalpina offers supply chain management systems
based on modern IT solutions to meet the complex
logistics requirements of hi­tech, automotive
as well as the retail and fashion industries among
others. The number of customers using this opportunity
to control purchasing processes and stock
levels in real time by means of automated electronic
data exchange rose again in 2006. Panalpina’s
web­based applications enable all interested parties
(customers, suppliers and subcontractors)
to access data relevant to them, whenever and
wherever they wish. This complete overview allows
customers to consolidate their goods for dispatch
more efficiently, thereby reducing shipping costs,
decreasing pollution and increasing process quality.
More comprehensive and transparent reports
The success the company has had in recent years
with SAP software (Business Data Warehouse) for
accounting activities led it to decide to use this software
for all of its reports in 2007. As a result, important
key figures and statistics from operations and
sales (particularly customer relationship management
data) will be made available for reporting purposes,
more rapidly and in a more transparent form.
More reliable and secure data centers
Work on consolidating the company’s original
70 data centers, which were spread throughout the
world, started in 2005. Progress in the year under
review was good, and the process is set for completion
on schedule by 2008. At the six new locations,
long­term leases have been taken out for computing
center sites that meet the highest security
standards and offer complete disaster recovery
in an emergency. Further substantial investments
have been made to protect central IT services
and regional networks.

Social commitment: Helping people
see the future
Since 2003, in collaboration with
the Swiss Red Cross, Panalpina
has made substantial financial contributions
to a long­term program
to combat poverty­related blindness
in Ghana – with visible success.
Besides its direct commercial obligations to all
stakeholders, every company also bears social re­
sponsibilities that extend much further. A globally
active group must ask itself how and where it should
commit itself to improving humanity. Panalpina
decided at an early stage to focus its social sponsorship
on a single sustainable program to deliver
effective, measurable aid. To Panalpina, it is of
additional importance to contribute to the development
of a region in which it is active and knows
the local conditions well.
Since 2003, the Group has therefore been supporting
a long­term program to combat poverty­related
blindness in Ghana. This initiative is part of the
Vision 2020 – Right to Sight global commitment,
through which the World Health Organization (WHO)
aims to eliminate poverty­related eye diseases
throughout the world by the year 2020. Having
been active in West Africa – where these diseases
are widespread – for several decades, Panalpina
wishes to make an effective contribution to the
campaign.
Conducted by the Ghanaian and Swiss Red Cross,
the program has the long­term objective of providing
full, effective basic eye care at regional and
local levels as part of Ghana’s healthcare system.
Panalpina’s aim as a partner is to help to achieve
the ambitious intermediate objective of halving,
by 2010, the number of patients suffering illnesses
leading to blindness. Since the project began, three
regional eye clinics with local outstations have
been set up in collaboration with the Ghana Health
Service (GHS). By the end of 2005, these clinics
had already treated 193,000 patients, while outreach
teams had examined another 80,000 people
in rural areas, and 56,000 children in schools.
Medical treatment was provided for those who
required it.
While the infrastructure was successfully established
over the past period, with specialist medical
personnel being given basic and advanced training
and healthcare programs being set up, the year
under review saw a substantial rise in the number
of examinations conducted. In 2006, a total of
243,242 Ghanaians received treatment: 88,938 in
22 static clinics, 71,714 by specialists visiting rural
areas and 82,590 children during visits to schools.
In the same time, 1,533 cataract and 1,141 other
operations were conducted, and 555 volunteers
and school health teachers were trained. 2006
therefore marked another major milestone on the
road to achieving the objectives of Vision 2020 in
Ghana.
www.panalpina.com/society
Sustainable Growth
Panalpina Annual Report 2006 5

Sustainable Growth
58 Panalpina Annual Report 2006
Corporate culture: Taking responsibility
is part of day­to­day business
Panalpina sees entrepreneurial
responsibility as a multi­faceted
obligation that must be part of the
daily lives of both management and
employees. The Group defines its
organization, processes and internal
guidelines in such a way as to ensure
that the company is in a position
to meet this obligation at any time.
The activity of a global forwarding and logistics
group is particularly closely connected with all
aspects of advancing globalization. Panalpina’s
activities are therefore conducted in accordance
with economic, social and cultural principles that
are, in the most comprehensive sense possible,
conducive to sustained business success.
The success of the Group is based on the contributions
of all employees, and on cooperation
amongst the most diverse personalities and talents
to generate new, creative business opportunities.
Panalpina therefore maintains a healthy, attractive
working environment in which every individual
feels responsible for the company’s reputation and
its success. Panalpina attaches great importance
to a corporate culture in which the rights and dignity
of all employees are respected – regardless of
their origins, beliefs or lifestyle.
At Panalpina, however, the importance of mutual
respect and fairness is not limited to internal relations.
Wherever they transact business, representatives
of the company are also required to uphold
ethical standards in their day­to­day contact with
customers, suppliers, competitors, official bodies
and the public in general.
During the year under review, pre­existing internal
policies were consolidated into a groupe­wide
Code of Business Conduct. This comprehensive
set of regulations contains guidelines that are mandatory
for all employees. Topics covered include
how to handle conflicts of interest, the avoidance
of insider transactions, fair competition and dealing,
the prohibition of bribery, the prevention of
discrimination and harassment in the workplace,
health and safety regulations and much more.
Conforming to the latest standards and based on
a mission statement from the Board of Directors
and the Executive Board, the code of conduct
increases transparency within the company – as
well as the risk­awareness of every individual
employee. In a number of ways, it reinforces the
corporate culture that is already a traditional part
of the company’s operations.
www.panalpina.com/culture

Corporate Governance: Committed
to a transparent management structure
Panalpina is committed to a transparent
management structure which is
governed by international Corporate
Governance principles. This Corporate
Governance Report complies with the
Directive of the SWX Swiss Exchange
and therefore serves to provide investors
with key information regarding
Corporate Governance in an accessible
format.
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
For strategic and organizational reasons the region
Europe / Africa / Middle East / CIS has been divided into
two sub­regions with Europe on the one side and Africa /
Middle East / CIS on the other side. A similar regional
split also exists in Asia / Pacific as China / Taiwan forms
an independent sub­region. Each of the aforementioned
regions is managed by its own Regional CEO.
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 extracted from
the segmental reporting section of the Consolidated
Financial Statements (page 69).
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 SWX Swiss
Exchange. The market capitalization on the closing
date amounted to CHF 4,155 million (25,000,000 registered
shares at CHF 166.20 per share).
On the closing date
• The free float consisted of 14,340,000 registered
shares (= 57.36% of the share capital) and thereof
• PWT held treasury stock consisting of 177,783
registered shares (= 0.71% of the share capital).
The PWT shares are traded under Valor no. 216808 / ISIN
CH0002168083, symbol PWTN.
1.1. Non-listed companies within the scope
of consolidation
The main subsidiaries and associated companies are
disclosed in the Consolidated Financial Statements
(page 107) 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 42.64%.
1.3 Cross­shareholdings
Cross­shareholding between PWT and any other
company does not exist.
Panalpina Annual Report 2006 5

Corporate Governance
60 Panalpina Annual Report 2006
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 to 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 any time until 22 August 2007.
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
made use of this authorization as yet.
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 2004 until 2006.
2.4 Shares and participation certificates
On the closing date, 25,000,000 fully paid­in PWT registered
shares with a nominal value of CHF 2.00 each were
issued. On this date, no participation certificates were
issued.
2.5 Dividend­right certificates
On the closing date no dividend­right 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 providing
proof of the acquisition of the shares and providing that
they expressly declare to 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 which 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.
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 (so­called grandfathering).
2.6.2 Reasons for granting exceptions in the year
under review
No exceptions were granted during the reporting year.
2.6. Permissibility 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 re­
corded 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 two­thirds 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 members of the Board of
Directors, the Executive Board and a further 124 senior
managers of Panalpina. For further particulars please
refer to point no. 5.6.

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 (Gerhard
Fischer, 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:
Gerhard Fischer, Chairman. Swiss citizen. Born in 1933.
Elected 1991 (until 2007).
Gerhard Fischer, who has a commercial education, joined
the Group in 1964 when he started working for Hans Im
Obersteg Ltd., Zurich, at that time a Panalpina subsidiary.
He was later nominated as delegate for the Group’s
Airfreight Far East division. From 1973 to 1978 he headed
Air Sea Broker (today CPC Air). In 1978, he moved to
the head office, where he led the air freight business of
the entire Group. In 1980, he became managing director
of Panalpina Nigeria. From 1986 to 1987, he was the
Group’s COO. In spring 1987, he was appointed CEO of
the Group, and in 1991 he was elected as a member
of the Board of Directors. In 1995, Gerhard Fischer was
also elected Chairman of the Board of Directors in addition
to his CEO function. In 1998, he handed over the
CEO function to his successor.
On 3 January 2006, Gerhard Fischer took over the presidency
of the Executive Board on an ad interim basis in
addition to his mandate as Chairman. Since then he is an
executive member of the Board of Directors of the Group.
In June 2006, the Board of Directors announced the ap­
pointment of Monika Ribar as CEO and she assumed this
function in October 2006. Due to Gerhard Fischer reaching
retirement age, he will step down from the Board
of Directors at the General Meeting of Shareholders
in 2007.
Wilfried Rutz, Vice Chairman. Swiss citizen. Born in 1939.
Elected 2003 (until 2007).
Wilfried Rutz holds a university degree in economics as
well as a PhD from the University of St. Gallen. From 1992
until 2004 he acted as CEO of the Debrunner Koenig
Group where he still is a member of its Board of Directors.
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. Elected 2005 (until 2008).
Günther Casjens is a trained forwarding and shipping
merchant. From 1974 until 2004 he held several positions
at Hapag­Lloyd, 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 deputy member of the executive board of Hapag­
Lloyd and from 1991 until 2004 he was member of the
executive board of Hapag­Lloyd. In 2004, Günther Casjens
became managing partner and chief executive officer
of Nordcapital Holding GmbH & Cie KG.
Rudolf W. Hug, member of the Board of Directors. Swiss
citizen. Born in 1944. Elected 2005 (until 2008).
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 until 1997, he ran the international
division and served as 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 will be appointed
as Chairman of the Board of Directors subsequent to
the 2007 General Meeting of Shareholders following the
official retirement of Gerhard Fischer.
Yuichi Ishimaru, member of the Board of Directors.
Japanese citizen. Born in 1939. Elected 2005 (until 2008).
Yuichi Ishimaru holds a bachelor degree in economics
from Keio University. He has worked for the Marubeni
Corporation since 1963. From 1995 until 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 until 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 been acting as special
advisor to Marubeni Corporation.
Glen R. Pringle, member of the board of Directors.
American citizen. Born in 1947. Elected 2005 (until 2008).
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. As from 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.
Roger Schmid, member of the Board of Directors.
Swiss citizen. Born in 1959. Elected 2003 (until 2007).
Roger Schmid holds a university degree in law as well as
a PhD in law from the University of Zurich. From 1991
until 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, excluding Gerhard Fischer
during the period from January to October 2006, are
non­executive members and do not actively perform any
managerial functions at PWT or any of the Group companies.
They have also not held any executive positions
within the past three years prior to this reporting year.
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Corporate Governance
62 Panalpina Annual Report 2006
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
Gerhard W. Fischer, Vice Chairman of the board of
trustees (Stiftungsrat) of the Ernst Göhner Foundation,
Zug.
Wilfried Rutz, Chairman of the board of trustees
(Stiftungsrat) of the Ernst Göhner Foundation, Zug,
member of the board of directors of Debrunner Koenig
Holding AG, St. Gallen, and Alba Management AG, Olten.
Günther Casjens, member of the advisory board at
Deutsche Bank AG, Hamburg, member of the advisory
board at Deutsche Schiffsbank, Bremen, corporate
adviser of Temasek Group, Singapore.
Rudolf W. Hug, member of the board of directors of
the following companies: Swiss Post, Berne, Orell Füssli
Holding AG, Zurich; Micronas Semiconductor Holding AG,
Zurich; Deutsche Bank (Schweiz) AG, Geneva; Allreal
Holding AG, Baar.
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 and AIG Private
Equity Ltd., Zug.
Other than these, the members of the Board of Directors
do not hold other material offices or do not carry out
any other principal activities that affect the Group.
3.3 Cross­involvement
No cross­involvement exists between board memberships
at PWT and other listed companies.
3.4 Elections and terms of office
.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 period
of office shall be individually determined for each member
at the time of his election. The members of the Board
of Directors are elected at the General Meeting of Shareholders
with a 3­years period of office. They may be reelected
at any time. The Organizational Regulations of
PWT specify an age limit of 72 years for the members of
the Board of Directors. In exceptional circumstances,
the Board of Directors may however decide to extend this
age limit up to the year of their 74 th birthday.
.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 item no. 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 respectively the Articles.
In line with the Articles, the Board of Directors has established
Organizational Regulations which transfer certain
management responsibilities to the Executive Board.
.5.1 Allocation of tasks within the
Board of Directors
The Board of Directors is self­constituting and appoints,
from among its members, 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 Internal Auditor as well
as the Corporate Secretary, in his capacity as secretary
to the Board of Directors, is directly subordinated to the
Chairman of the Board of Directors.
.5.2 Member list, tasks and areas of responsibility
for each committee of the Board of Directors
Two committees exist under the Board of Directors.
The Audit Committee consists of the following members
of the Board of Directors: Wilfried Rutz (Chairman), Rudolf
Hug and Roger Schmid. The Audit Committee supports
the Board of Directors with the supervision of the financial
accounting, financial reporting and 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. In addition, it regularly maintains
contact with the Group Auditor and the Internal
Auditor. Based on this, it adopts the detailed reports of
the Group Auditors and semi­annual reports of Internal
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 the internal
audit, adopts the 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
and adopts the necessary measures for risk control
and risk mitigation. During the reporting year the Audit
Committee held seven half­day meetings. At one of the
aforementioned meetings the sole topic on the agenda
was the review of the booking manipulations, which have
been discovered in December 2005 at the subsidiary
Panalpina Airfreight Management Ltd. (now Panalpina Air
& Ocean Ltd.). During Audit Committee meetings direct
discussions took place with representatives of the Group
Auditors and Internal Audit. Representatives from the
Group Auditors were present at four of these meetings
and at three of these meetings the Internal Auditor
attended. At these meetings the Executive Board was

egularly represented by the CEO, the CFO and the
Corporate Secretary.
The Compensation & Nomination Committee consists
of the following members of the Board of Directors:
Gerhard Fischer (Chairman), Wilfried Rutz and Roger
Schmid. 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 em­
ployees. Furthermore, the Committee regularly reviews
the proposed management share and option programs
of the Group and submits proposals to the Board of
Directors. During the reporting year, the Compensation &
Nomination Committee held six meetings with a duration
of approximately two hours each. The Executive Board
was regularly represented at these meetings by the
CEO, the Chief Administrative Officer and the Corporate
Secretary.
As a rule, both Committees 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 taken 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 24 August 2005.
The overall responsibility of the Board of Directors is not
affected by these committees.
.5. Work methods of the Board of Directors
and its committees
During the reporting year, the Board of Directors held six
half­day meetings and two telephone conferences.
The Executive Board was represented by the CEO, the
CFO 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 is updating the
Board of Directors on business and key financial developments,
as well as information on debtor management.
On a quarterly basis, detailed consolidated financial statements
on group, regional and business segment level
are reported to the Board of Directors. 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 on 27 October 2006 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 in which the Board of Directors and the Executive
Board can efficiently execute their daily business.
The Organizational Regulations also outline the reporting
duties of the Executive Board on Group and Holding level.
3.7 Information and control instruments
vis­à­vis the senior management
The Executive Board regularly informs the Board of
Directors of business developments. Elements of this
reporting include monthly financial reports, consolidated
quarterly regional and business segment results (with
actual figures, previous years’ figures and budget figures),
the reporting of business development in all regions and
business segments (including focus and problematic
organizations), the debtors’ and creditors’ reports (including
DSO / DPO) as well as the net working capital.
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
joins meetings of the Board of Directors as well as meetings
of its committees. For further details please refer
to items 3.52 and 3.5.3.
The Audit Committee of the Board of Directors monitors
and assesses the activities of the Internal Auditor as
well as his cooperation with the Group Auditor. The Audit
Committee receives the Internal Auditor’s half­year
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 detail please refer to item 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 until 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 in June 2006 her appointment as CEO was
announced. She officially took over the CEO function in
October 2006. She holds an university degree in Finance
and Controlling from the University of St. Gall. She participated
in the Executive Program of the Graduate School
of Business at Stanford University, Palo Alto, California,
in 1999.
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64 Panalpina Annual Report 2006
Jörg Eggenberger, Chief Operations Officer, Swiss
citizen. Born in 1961. Member of the Executive Board
since 2000. Responsible for Air & Ocean Operations,
Air & Ocean Procurement, Business Processes & Quality,
Agent Relations, Security and Panprojects.
Jörg Eggenberger joined Panalpina in 1977 and has held
several positions. From 1981 until 1982, he held a management
position at Panalpina London, after which he
returned to the marketing and sales department at the
Swiss company. From 1985 until 1988, he held another
management position with Panalpina in Melbourne.
In 1989, he was assigned for a management position in
Taipei and in 1990 he held the position of a branch manager
at Panalpina Melbourne. From 1990 until 1991 he
worked as manager Far East with Air Sea Broker (today
CPC Air). In 1991, he became director of the Ocean
Freight division at the corporate head office. In 1998, Jörg
Eggenberger became managing director of the West
Africa Division of Air Sea Broker. In 2000, Jörg Eggenberger
became a member of the Executive Board as COO
Eastern Hemisphere. In 2002, he was appointed Regional
CEO of the Africa / Middle East / Central Asia / CIS division.
In 2005, he was appointed as COO of the Group, and held
this position until October 2006, when he was appointed
as Chief Operations Officer and John Klompers was
announced as the Chief Marketing & Sales Officer. Jörg
Eggenberger is a trained forwarding merchant. In 2004,
he participated in a senior management course at
Columbia University, New York.
Christoph Hess, General Counsel & Corporate Secretary,
Swiss citizen. Born in 1955. Member of the Executive
Board since 2006. Responsible for Corporate Legal Services,
Insurances and Corporate Communications.
Christoph Hess joined the Group’s head office in 1994 as
General Counsel and Secretary of the Board of Directors
and the Executive Board. In his capacity he also manages
both the Group’s Legal / Insurance and Communications
departments.
Christoph Hess holds a degree in law from the University
of Basel and has been admitted to the bar in Switzerland.
Jürg Honegger, Chief Financial Officer (CFO), Swiss citizen.
Born in 1964. Member of the Executive Board since
October 2006. Responsible for Financial Reporting, Tax
Management, Corporate Treasury, Controlling and Credit
Control as well as Investor Relations.
Jürg Honegger started his career as Controller and Auditor
for companies in Mexico and Switzerland. From 1994
to 2004, he was employed by the Volcafe Group, initially
as Assistant to the Group CFO at their Headquarters,
thereafter as Head of Finance in Colombia and later as
Managing Director for its subsidiary in Uganda. In 1999,
he was promoted to Group CFO and member of the
Executive Board. He held this position until 2004. Subsequent
to the acquisition of the Volcafe Group in 2004
by the new owner ED & F MAN Holdings Ltd., he held the
position of Group Treasurer and Divisional Finance Director,
based in London, until 2006.
Jürg Honegger has a degree in Business Administration
(lic. oec. HSG) from the University of St. Gall.
John Klompers, Chief Marketing & Sales Officer, Dutch
citizen. Born in 1964. Member of the Executive Board
since October 2006. Responsible for Marketing & Sales,
Key Account Management, Industry Verticals, Supply
Chain Management and Oil & Gas.
John Klompers joined ChartAir Europe in 1995 (a company
acquired by Panalpina in 1996) as Marketing &
Sales Executive. In 1997, he was appointed as Branch
Manager of Panalpina Eindhoven and Global Account
Manager for a leading electronics company. In 1999, he
became Managing Director of Panalpina Netherlands
and in 2003 Managing Director of the Benelux area, which
includes Panalpina country organizations in the Netherlands,
Belgium and Luxembourg. In 2005, he was nominated
as Regional Chief Executive Officer for Europe.
John Klompers holds bachelor degrees in Economics,
Supply Chain Management and Marketing from universities
in Eindhoven and Utrecht.
Roland Wider, Chief Administrative Officer, Swiss citizen.
Born in 1959. Member of the Executive Board since 2002.
Responsible for Human Resources, Corporate Information
Technology, Project Management and Management
Information System.
Roland Wider joined Panalpina in 2002 as CFO of the
Group and member of the Executive Board. In 2005,
he was appointed as Chief Administrative Officer of the
Group. Prior to Panalpina, he held several management
positions at different companies in Switzerland and in Asia.
From 1996 until 1999 he was working for Kühne + Nagel
in Hong Kong as the regional CFO for the Asia­Pacific
region. Roland Wider holds a certificate in economics from
the Höhere Wirtschafts­ und Verwaltungsschule Zürich
as well as a degree as certified public accountant from
the Schweizerische Treuhand­ and Revisionskammer.
Roland Wider has left the Company in April 2007.
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.
John Klompers, member of the board of directors
of Luxair SA, Luxembourg (subject to his election at the
Luxair Annual General Meeting 2007).
4.3 Management contracts
No management contracts exist with any third party
outside of the Group.

5. Compensation, shareholdings
and loans
5.1 Content and method of determining
the compensation and the share­ownership
programs
Both the compensation and principles governing the
share ownership and option programs for Board of
Directors and the Executive Board are determined and
approved by the Board of Directors based on the proposal
of the Compensation and Nomination Committee.
The members of the Board of Directors receive a fixed
annual compensation. The salary package for the members
of the Executive Board is made up of a fixed basic
salary, expense allowance and a bonus, which depends
on the Group’s result (normalized EBIT) and on achievement
of individual performance targets. The target bonus
of the individual EB member equals between 50% and
100% of the individual annual basic salary.
The members of the Board of Directors as well as the
members of the Executive Board had the possibility
to voluntarily participate in the share and option program
introduced in 2005 and continued in a modified program
in the reporting year. Details are outlined in item 5.6.
The Executive Board contracts stipulate that as from
reporting year 2007, 50% of the respective bonuses will
be paid in cash and 50% in the form of shares according
to the applicable share and option program.
5.2 Compensation for acting members
of governing bodies (Board of Directors and
senior management)
The total amount of compensation paid to the Board of
Directors and the Executive Board during the financial
year equaled CHF 7,877,000*, of which CHF 1,240,000*
were paid to the (non­executive) members of the Board
of Directors and CHF 6,637,000* to the Executive
Chairman and the members of the Executive Board.
During the reporting year an Executive Board member
received a severance payment of CHF 2,709,000.
5.3 Compensation to former members of
the Board of Directors and the Executive Board
During the reporting year no compensation was paid to
former members of the Board of Directors and Executive
Board.
5.4 Share allotment in the year under review
Excluding the share and option program disclosed in
item 5.6, no further shares or share options are allocated
to the members of the Board of Directors or the Executive
Board or any of its associated persons.
5.5 Share ownership
The following shares were registered in the name of the
members of the Board of Directors, respectively the
Executive Board (or associated persons) on closing date:
Members of the Board of Directors including associated
persons held the following shares on closing date:
Name Number of PWT nominal shares
Gerhard Fischer 8,180
Wilfried Rutz 8,250
Günther Casjens 8,950
Rudolf W. Hug 4,450
Yuichi Ishimaru 8,050
Glen R. Pringle 3,000
Roger Schmid 10,550
Total 51,4 0
Members of the Executive Board including associated
persons held the following shares on closing date:
Name Number of PWT nominal shares
Monika Ribar 5,550
Jörg Eggenberger 5,626
Christoph Hess 1,250
John Klompers 2,500
Roland Wider 2,800
Total 1 , 26
5.6 Options
During 2005, PWT introduced a share and option ownership
program whereas members of the Board of Directors
were offered a total of 26,250 PWT registered shares
and the members of the Executive Board were offered a
total of 15,000 PWT registered shares. The members of
the Board of Directors purchased a total of 23,700 registered
shares and the members of the Executive Board
at that time purchased a total of 15,000 registered shares
at the offering price of CHF 80.00 each. The sale of the
shares purchased under this program was restricted to
16 September 2006. For every purchased share, the subscribers
of this program have been allocated two options,
each option entitling them to purchase one further share
at the offering price. The option could be exercised from
17 September 2006 and for a period of two years i.e.
until 16 September 2008, the option will lapse after the
expiry of the aforementioned period.
In June of the reporting year, a slightly modified share and
option program was introduced. Members of the Board
of Directors were offered a total of 12,600 PWT registered
shares and the members of the Executive Board were
offered a total of 5,400 PWT registered shares. Within
the scope of this program, the members of the Board
of Directors purchased a total of 12,600 PWT registered
shares and the members of the Executive Board purchased
a total of 5,400 PWT registered shares at a purchase
price of 75% of the average closing price of the
shares at the SWX from January to May 2006 (CHF 111.30).
* Amounts rounded to the nearest CHF 1000.
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66 Panalpina Annual Report 2006
The sale of the subscribed shares was restricted for one
year i.e. up to 11 June 2007. With every subscribed share
one option is attained, which is allocated to the extent
of 1 /3 after a vesting period of one, two, respectively three
years and entitles the participant to purchase to a share
at the price of CHF 111.30. Options may be exercised
after allocation until 11 June 2012 after which they expire.
Members of the Board of Directors including associated
persons held the following options on closing date
(subject to allocation).
Year of Number
Name allocation of options Term
Gerhard Fischer 2005 7,500 2005 – 2008
2006 1,800 2006 – 2012
Wilfried Rutz 2005 4,500 2005 – 2008
2006 1,800 2006 – 2012
Günther Casjens 2005 0 2005 – 2008
2006 1,800 2006 – 2012
Rudolf W. Hug 2005 0 2005 – 2008
2006 1,800 2006 – 2012
Yuichi Ishimaru 2005 5,000 2005 – 2008
2006 1,800 2006 – 2012
Glen R. Pringle 2005 2,400 2005 – 2008
2006 1,800 2006 – 2012
Roger Schmid 2005 7,500 2005 – 2008
2006 1,800 2006 – 2012
Total ,500
Members of the Executive Board as well as associated
persons held the following options on closing date
(subject to allocation):
Year of Number
Name allocation of options Term
Monika Ribar 2005 7,500 2005 – 2008
2006 1,800 2006 – 2012
Jörg Eggenberger 2005 3,750 2005 – 2008
2006 1,800 2006 – 2012
Christoph Hess 2005 2,000 2005 – 2008
2006 600 2006 – 2012
John Klompers 2005 5,000 2005 – 2008
Roland Wider 2005 2,500 2005 – 2008
2006 1,800 2006 – 2012
Total 26, 50
5.7 Additional fees and remunerations
None of the members of the Board of Directors respectively
the Executive Board including their associated
persons received any additional fees or remuneration
during the reporting year.
5.8 Loans granted by governing bodies
No loans were granted to any members of the Board
of Directors or to any members of the Executive Board.
5.9 Highest total compensation
The highest total amount received by a single member of
the Board of Directors during the reporting year amounted
to CHF 1,664,000. This member purchased 1,800 PWTN
registered shares during the reporting year according
to the terms of the company’s share and option program
as stipulated in item 5.6. Consequently a total of 1,800
options were allocated that may be exercised after the
restriction period until 2012, entitling this member to purchase
one share per option at the price of CHF 111.30.
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
(so­called 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
two­thirds of the voting shares represented agree.
A written proxy entitles a shareholder to be represented
at the General Meeting of Shareholders by his 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).
6.2 Statutory quorums
In principle, the legal rules on quorums apply. Supplementary
to the quorums legally listed, a two­thirds 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 the
General Meeting of Shareholders has been called (date
of invitation) until the day after the General Meeting
of Shareholders has taken place.
7. Changes of control and defence
measures
7.1 Duty to make an offer
No opting­out or opting­up 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 changes
of control 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
was taken over by PricewaterhouseCoopers AG, Basel,
(PwC) for the first time for the 1972 financial year by
a declaration of acceptance of May 1972.
The lead auditor, Thomas Brüderlin, who is responsible
for the mandate, commenced duties in 2001.
8.2 Auditing fees
According to financial accounting, invoices for auditing
fees for the financial year amounted to CHF 2,895,000.
8.3 Additional fees
The auditors PwC were compensated an additional
amount of CHF 765,000 for further services rendered in
the financial year.
8.4 Supervisory and control instruments
pertaining to the audit
The Group Auditors are supervised and controlled by
the Audit Committee. The Group Auditors also report
to the Audit Committee and periodically the lead auditor
participates at the meetings (refer to item 3.5).
9. Information policy
Panalpina regularly updates its Internet website
www.panalpina.com, informing the public of any major
events, organizational changes and (quarterly) financial
results. Press releases are accessible there to all visitors
to the website; alternatively subscriptions can be made
so that all latest press releases are automatically forwarded
via e­mail. Furthermore, all publications such as
the Annual 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
website (under Investor Relations).
www.panalpina.com/corpgov
Corporate Governance
Panalpina Annual Report 2006 6

68 Panalpina Annual Report 2006

Consolidated and Annual
Financial Statements 2006
Contents
Consolidated Financial
Statements 2006
Consolidated Income
Statement 70
Consolidated Balance Sheet 71
Consolidated Statement
of Recognized Income
and Expenses 72
Consolidated Statement of
Changes in Equity 73
Consolidated Cash Flow
Statement 74
Notes to the Consolidated
Financial Statements 75
Principal Group Companies
and Participations 107
Report of the Group Auditors 111
Key Figures
5­years review in CHF 111
Balance Sheet
5­years review in CHF 113
Key Figures
5­years review in EUR 114
Balance Sheet
5­years review in EUR 116
Annual Financial
Statements 2006 of Panalpina
World Transport (Holding) Ltd.
Income Statement 119
Balance Sheet as of
31 December (before profit
appropriation) 120
Notes to the Financial
Statements 122
Appropriation of
Available Earnings 124
Report of the
Statutory Auditors 125
Information for Investors 126
Panalpina Annual Report 2006 6

Consolidated and Annual Financial Statements 2006
70 Panalpina Annual Report 2006
Consolidated Income Statement
for the years ended 31 December 2006 and 2005
in thousand CHF Notes 2006 2005 1
Forwarding services 9,301,215 8,280,285
Customs, duties and taxes (1,565,979) (1,331,620)
Net forwarding revenue 5 7,735,236 6,948,665
Forwarding services from third parties 5 (6,144,403) (5,540,997)
Contribution margin (gross profit) 5 1,590,833 1,407,668
Personnel expenses 6 (886,857) (843,717)
Other operating expenses 7 (391,208) (361,735)
Gains (losses) on sales of non-current assets 8 (99) 11,954
Depreciation of property, plant and equipment 14 (34,777) (36,242)
Amortization of intangible assets 15 (16,383) (12,121)
Impairment of financial assets 15 (511) (174)
Operating result (Ebit) 260,998 165,633
Financial income 9 12,230 15,638
Financial expenses 9 (33,157) (23,389)
Earnings before taxes 240,071 157,882
Taxes on income 10 (56,561) (37,576)
Consolidated net earnings 183,510 120,306
Attributable to:
Equity holders of the Company 181,599 117,355
Minority interests 21 1,911 2,951
Consolidated net earnings 183,510 120,306
Earnings per share for profit attributable to equity holders
of the Company during the year (expressed in CHF per share)
– basic 11 7.34 4.71
– diluted 11 7.33 4.70
1 Certain comparatives have been reclassified to conform with the current period’s presentation.

Consolidated Balance Sheet
as of 31 December 2006 and 2005
Assets
Consolidated and Annual Financial Statements 2006
in thousand CHF Notes 2006 2005 1
Current assets
Cash and cash equivalents 371,352 224,829
Financial assets held for trading 2,524 5,384
Trade receivables 12 1,185,459 1,108,443
Unbilled forwarding services 135,393 82,459
Other receivables and other current assets 13 77,974 64,482
Total current assets 1,772,702 1,485,597
Non-current assets
Property, plant and equipment 14 161,548 152,450
Financial and other assets 15 44,365 43,041
Intangible assets 15 102,358 108,792
Deferred tax assets 18 27,286 29,999
Total non-current assets 335,557 334,282
Total assets 2,108,259 1,819,879
Liabilities and equity
in thousand CHF Notes 2006 2005 1
Current liabilities
Trade payables 501,051 437,375
Other payables and accruals 157,029 146,115
Accrued cost of services 220,620 157,592
Borrowings 19 24,239 18,799
Other liabilities 16 76,442 67,916
Current income tax liabilities 30,707 27,685
Total current liabilities 1,010,088 855,482
Non-current liabilities
Borrowings 19 3,248 1,644
Provisions 17 101,344 83,733
Deferred tax liabilities 18 15,873 21,170
Total non-current liabilities 120,465 106,547
Total liabilities 1,130,553 962,029
Equity
Share capital 20 50,000 50,000
Treasury shares 20 (15,022) (20,000)
Reserves 934,708 820,893
Issued share capital and reserves available to Panalpina shareholders 969,686 850,893
Minority interests 21 8,020 6,957
Total equity 977,706 857,850
Total liabilities and equity 2,108,259 1,819,879
1 Certain comparatives have been reclassified to conform with the current period’s presentation.
Panalpina Annual Report 2006 71

Consolidated and Annual Financial Statements 2006
72 Panalpina Annual Report 2006
Consolidated Statement of Recognized
Income and Expenses
for the years ended 31 December 2006 and 2005
in thousand CHF Notes 2006 2005
Amounts recognized in equity for pension plan
Defined benefit post-employment plans
– Actuarial gains (losses) 23 (14,724) 21,825
– Effect of impact of limit in paragraph 58b 23 2,527 (24,709)
– Exchange difference 23 (2,146) (75)
Other long-term employee benefits
– First time adoption (295) (722)
Income taxes on items recognized in equity 18 4,281 983
Exchange difference on translations of foreign operations (8,114) 35,676
Net earnings recognized directly in equity (18,471) 32,978
Consolidated net earnings 183,510 120,306
Total recognized earnings for the year 165,039 153,284
Attributable to equity holders of the Company 163,128 150,333
Attributable to minority interests 1,911 2,951

in thousand CHF
Consolidated and Annual Financial Statements 2006
Consolidated Statement of Changes in Equity
for the years ended 31 December 2006 and 2005
Notes
Share
capital
Attributable to equity holders of the Company Minority
interests
Treasury
shares
Other
reserves
Trans-
lation
reserve
Retained
earnings
Restated balance on 1 January 2005
Defined benefit post-employment
plans
50,000 0 (87,950) (87,264) 909,639 784,425 3,484 787,909
– Actuarial gains (losses)
– Effect of impact of limit in
23 21,825 21,825 21,825
paragraph 58b 23 (24,709) (24,709) (24,709)
– Exchange difference
Other long-term employee benefits
23 (75) (75) (75)
– First time adoption in France
Exchange difference on translating
(722) (722) (722)
foreign operations
Income taxes on items recognized
29,994 29,994 618 30,612
in equity
Net earnings recognized directly
18 983 983 983
in equity 0 0 (2,698) 29,994 0 27,296 618 27,914
Consolidated net earnings
Total recognized earnings for
117,355 117,355 2,951 120,306
the year 0 0 (2,698) 29,994 117,355 144,651 3,569 148,220
Dividends paid 20 (60,000) (60,000) (96) (60,096)
Share-based payments 24 1,817 1,817 1,817
Changes in treasury shares, net 20 (20,000) (20,000) (20,000)
Balance on 31 December 2005 50,000 (20,000) (90,648) (57,270) 968,811 850,893 6,957 857,850
Balance on 1 January 2006
Defined benefit post-employment
plans
50,000 (20,000) (90,648) (57,270) 968,811 850,893 6,957 857,850
– Actuarial gains (losses)
– Effect of impact of limit in
23 (14,724) (14,724) (14,724)
paragraph 58b 23 2,527 2,527 2,527
– Exchange difference
Other long-term employee benefits
23 (2,146) (2,146) (2,146)
– First time adoption in Indonesia
Exchange difference on translating
(295) (295) (295)
foreign operations
Income taxes on items recognized
(8,114) (8,114) (750) (8,864)
in equity
Net earnings recognized directly
18 4,281 4,281 4,281
in equity 0 0 (10,357) (8,114) 0 (18,471) (750) (19,221)
Consolidated net earnings
Total recognized earnings for
181,599 181,599 1,911 183,510
the year 0 0 (10,357) (8,114) 181,599 163,128 1,161 164,289
Dividends paid 20 (49,384) (49,384) (98) (49,482)
Share-based payments 24 1,767 1,767 1,767
Changes in treasury shares, net 20 4,978 (1,696) 3,282 3,282
Balance on 31 December 2006 50,000 (15,022) (101,005) (65,384) 1,101,097 969,686 8,020 977,706
Total
Total
equity
Panalpina Annual Report 2006 73

Consolidated and Annual Financial Statements 2006
74 Panalpina Annual Report 2006
Consolidated Cash Flow Statement
for the years ended 31 December 2006 and 2005
in thousand CHF Notes 2006 2005 1
Total cash flow from operating activities 26 338,264 214,571
Interest received 11,688 7,753
Interest paid (23,334) (18,194)
Taxes paid (52,884) (37,409)
Other liabilities utilized (18,651) (21,359)
Long-term provisions utilized 17 (14,150) (3,496)
Net cash flow from operating activities 240,933 141,866
Cash flow from investing activities
Property, plant and equipment 14 (48,219) (45,081)
Investments (incl. goodwill) in consolidated subsidiaries 0 (11,658)
Investments held for trading 0 (73)
Other financial investments 15 (4,477) (6,942)
Intangible assets 15 (8,761) (14,810)
Total investments (61,457) (78,564)
Proceeds from sales of property, plant and equipment 2,767 39,010
Proceeds from sales of investments 47 0
Loan repayments 212 1,498
Proceeds from sales of securities 2,720 11,158
Repayment of other financial assets 735 6,395
Sale of intangible assets 91 47
Total cash flow from investing activities (54,885) (20,456)
Cash flow from financing activities
Proceeds from (repayment of) short-term borrowings 5,680 (2,896)
Proceeds from long-term borrowings 1,613 1,246
Dividends paid 20 (49,384) (60,000)
Dividends paid to minority interests 21 (98) (96)
Treasury shares 3,282 (20,000)
Total cash flow from financing activities (38,907) (81,746)
Effect of exchange rate changes on cash and cash equivalents (618) (23,793)
Increase (decrease) in cash and cash equivalents 146,523 15,871
Cash and cash equivalents at the beginning of the year 224,829 208,958
Cash and cash equivalents at the end of the year 371,352 224,829
1 Certain comparatives have been reclassified to conform with the current period’s presentation.

Notes to the Consolidated Financial
Statements
1 General
Consolidated and Annual Financial Statements 2006
The consolidated financial statements of Panalpina World Transport (Holding) Ltd. (“the Company”) were authorized for
issuance in accordance with a resolution of the Board of Directors on 14 March 2007.
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 SWX Swiss Exchange in Zurich.
The Company and its subsidiaries (together “the Group”), are one of the world’s leading logistics and forwarding companies
specialized in international air and ocean transports.
2 Summary of significant accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are listed below.
These policies have been consistently applied to all the years, unless stated otherwise.
Basis of preparation of the consolidated financial statements
The consolidated financial statements of the Group 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 financial statements for
2006 and 2005 are presented in Swiss francs (CHF). All values are rounded to the nearest thousand CHF except where
otherwise indicated. The consolidated accounts have been prepared in accordance with the International Financial Reporting
Standards (IFRS) and interpretation thereof adopted by the International Accounting Standards Board (IASB).
The consolidated financial statements have been prepared under the historical cost convention. Exceptions, if any, are
disclosed in the accounting policies below. Certain items, including derivatives financial instruments and available-for-sale
investments, are recorded at fair value.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates.
It also requires the management to exercise its judgment in the process of applying the Company’s accounting policies. 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.
Changes in accounting policies
Apart from IAS 19 Employee Benefits, which the Group decided to early adopt in 2004, the following new standards,
amendments to standards and interpretations are published by the International Accounting Standards Board (IASB) and
adopted by the Group. A description of changes in 2006 and their effect on the consolidated financial statements is
provided below.
IAS 21 (amendment) The Effects of Changes in Foreign Exchange Rates
As of 1 January 2006, the Group adopted the amendments of IAS 21. As a result, all exchange differences arising from a
monetary item that forms part of the Group’s net investment in a foreign operation are recognized in a separate component
of equity in the consolidated financial statements regardless of the currency in which the monetary item is denominated.
This change has had no significant impact as of 31 December 2006 or 31 December 2005.
IAS 39 Financial Instruments: Recognition and Measurement
Amendment for financial guarantee contracts (issued August 2005), amended the scope of IAS 39 to require financial
guarantee contracts that are not considered to be insurance contracts to be recognized initially at fair value and to
be remeasured at the higher of the amount determined in accordance with IAS 37 Provision, Contingent Liabilities and
Contingent Assets and the amount initially recognized less, when appropriate, cumulative amortization recognized in
accordance with IAS 18 Revenue. This amendment did not have an effect on the financial statements.
Amendment for hedges of forecast intra-group transactions (issued April 2005). This amendment to IAS 39 permits the
foreign currency risk of a highly probable intra-group forecast transaction to qualify as the hedged item in a cash flow hedge,
provided that the transaction is denominated in a currency other than the functional currency of the entity entering into that
transaction and that the foreign currency risk will affect the consolidated income statement. As the Group currently has
no such transactions, the amendment did not have an effect on the financial statements.
Amendment for the fair value option (issued June 2005). This amendment changes the definition of financial instruments
classified as fair value through profit or loss and restricts the ability to designate financial instruments as part of this
category. The Group believes that this amendment should not have a significant impact on the classification of financial
instruments as the Group should be able to comply with the amended criteria for the designation of financial instruments
at fair value through profit and loss.
Panalpina Annual Report 2006 75

Consolidated and Annual Financial Statements 2006
76 Panalpina Annual Report 2006
IFRIC 4 Determining Whether an Arrangement contains a Lease
The Group adopted IFRIC interpretation 4 as of 1 January 2006, which provides guidance in determining whether
arrangements contain a lease to which lease accounting must be applied. This change in accounting policy has not had
a significant impact on the Group as of 31 December 2006 or 31 December 2005.
IFRIC 5 Right to Interests Arising from Decommissioning, Restoration and Environment Rehabilitation Funds
The amendment with effect for periods beginning from 1 January 2006 establishes the accounting treatment for funds
established to help finance decommissioning for a company’s assets. As the entity does not operate in a country where such
funds exist, this interpretation has had no impact on the financial statements.
IFRIC 8 Scope of IFRS 2
The Group early adopted IFRIC interpretation 8 as of 1 January 2006, which requires IFRS 2 to be applied to any
arrangements where equity instruments are issued for consideration which appears to be less than fair value. As equity
instruments are only issued to employees in accordance with the employee share scheme, the interpretation had no impact
on the financial position of the Group.
The following standards, amendments and interpretations are mandatory for accounting periods beginning on or after
1 January 2006 but are not relevant to the Group’s operations:
• IFRS 1 (amendment) First-time Adoption of International Financial Reporting Standards and IFRS 6 (amendment)
Exploration for an Evaluation of Mineral Resources
• IFRS 6 Exploration for and Evaluation of Mineral Resources
• IFRIC 6 Liabilities Arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment
The following standard and interpretations to existing standards have been published which are mandatory for the Group’s
accounting periods beginning on or after 1 May 2006 or later periods, but which the Group has not early adopted.
IFRS 7 Financial Instruments (Disclosures) and a complementary amendment to IAS 1 Presentation of Financial Statements
(Capital Disclosures) (effective from 1 January 2007)
IFRS 7 introduces new disclosures to improve the information about financial instruments. It requires the disclosure of
qualitative and quantitative information regarding exposure to risks arising from financial instruments, including specified
minimum disclosures about credit risk, liquidity risk and market risk, including a sensitivity analysis of market risk. It replaces
IAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions and disclosure requirements in IAS
32 Financial Instruments: Disclosure and Presentation. It is applicable to all entities reporting under IFRS. The amendment
to IAS 1 introduces disclosures about the level of an entity’s capital and how it manages capital. The Group assessed the
impact of IFRS 7 and the amendment to IAS 1 and concluded that the main additional disclosures will be the sensitivity
analyses to market risk and the capital disclosures required by the amendment of IAS 1. The Group will apply IFRS 7 and the
amendment to IAS 1 to annual periods beginning 1 January 2007.
IFRS 8 Operating Segments was published in November 2006, and will be effective for accounting periods beginning on or
after 1 Janaury 2009.
IFRS 8 replaces IAS 14 Segmental Reporting. IFRS 8 requires entities to define operating segments and segment
performance in the financial statements based on information used by the chief operating decision-maker. This new
requirements could have an impact on the segments presented, the items reported and their respective measurement. The
Group has not undergone a careful analysis and therefore no final assessment of the impact can presently be made.
IFRIC 10 Interim Financial Reporting and Impairment
The interpretation prohibits the impairment losses recognized in an interim period on goodwill, investments in equity
instruments and investments in financial assets carried at cost to be reversed at a subsequent balance sheet date. The
Group will apply IFRIC 10 as of 1 January 2007, but it is not expected to have any impact on the next year Group’ accounts.
IFRIC 7 Applying the Restatement Approach under IAS 29, Financial Reporting in Hyperinflationary Economies
(Effective from 1 March 2006). IFRIC 7 provides guidance on how to apply the requirements of IAS 29 in a reporting period
in which an entity identifies the existence of hyperinflation in the economy of its functional currency, when the economy was
not hyperinflationary in the prior period.
IFRIC 9 Reassessment of Embedded Derivatives
IFRIC 9 was issued in March 2006, and becomes effective for financial years beginning on or after 1 June 2006. This
interpretation establishes that the date to assess the existence of an embedded derivative is the date an entity first becomes
a party to the contract, with reassessment only if there is a change to the contract that significantly modifies the cash
flows. The Group is still evaluating the effect of this interpretation and expects that the adoption of this interpretation will
have no impact on the Group’s financial statements when implemented in 2007.

Consolidated and Annual Financial Statements 2006
Comparatives
The format of the consolidated balance sheets, the consolidated cash flow statement, the consolidated income statement
and the segmental reports of these consolidated financial statements has been adjusted. In 2006, bills of exchange
(commitments) in transit have been reclassified to cash and cash equivalents. Suppliers’ discounts have been reclassified
from forwarding services (revenue) to forwarding services from third parties. Where necessary, the comparatives have been
reclassified to take into account these presentational changes.
Scope and method of consolidation
Subsidiaries
The consolidated financial statements include the financial statements of all subsidiaries that are directly or indirectly
controlled (including special purpose entities) by the Group. “Control” is defined as the power to govern the financial and
operating policies generally accompanying a shareholding of more than one half of the voting rights. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date control
ceases.
The purchase method of accounting is used for the acquisition of subsidiaries by the Group. 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, plus costs directly attributable to the acquisition. Identifiable assets acquired as well as liabilities and contingent
liabilities assumed in a business combination are measured initially at their fair value on the acquisition date, irrespective
of the extent of any minority interest. The excess of the costs of acquisition over the Group’s share of the fair value of the
acquired subsidiary’s identifiable net assets is recorded as goodwill. If the cost of acquisition is less than the Group’s share
of the fair value of the net asset of the subsidiary acquired, the difference is recognized directly in the income statement.
Subsidiaries acquired or disposed during the year are included in the consolidated financial statements from the date of
acquisition or up to the date of disposal.
All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions
that are recognized in assets are fully eliminated. Unrealized losses are considered as an impairment indicator of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
by the Group.
Minority interests and associates
Investments in associated companies are those entities in which the Group has significant influence, but not control,
generally accompanying a shareholding of between 20% and 50% of the voting rights.
Minority interests represent the portion of profit or loss and net assets not held by the Group and are presented separately
in the income statement and within equity in the consolidated balance sheet, separately from parent shareholders’ equity.
Acquisitions of minority interests are accounted for using the parent entity extension method, whereby, the difference
between the consideration and the book value of the share of the net assets acquired is recognized as goodwill. Disposals
to minority interests result in gains and losses for the Group and are recorded in the income statement.
Associates are accounted using the equity method of accounting and are initially recognized at cost. The Group’s investment
in associates includes goodwill (net of any accumulated impairment loss) identified on acquisition.
The majority of Group companies and equity investments are listed on page 107 ff.
Segment reporting
The Group is primarily organized by regions. The risks and returns of the Group’s operations are primarily determined by the
geographical location of the Group’s operations. This is reflected by the Group’s management and organizational structure.
The determination of the Group’s geographic and business segments is based on the organization units for which information
is reported to the Group’s management. The Group has four regions, Europe / Africa / Middle East / CIS, North America,
Central and South America and Asia / Pacific. The two sub-regions Africa / Middle East / CIS and China / Taiwan are managed
separately, but they are reported within their respective main regions and are not considered as separately reportable
geographical segments.
Transfer prices between segments are established on an arm’s length basis. Segment assets and liabilities consist of current
assets and liabilities, and of property, plant and equipment, goodwill, intangible assets, pension assets / liabilities and
provisions. Non-segment assets and liabilities mainly include deferred income tax balances and financial assets. Capital
expenditure comprises additions minus disposals to goodwill, intangible assets and property, plant and equipment, including
those arising from acquisitions.
A segment is engaged in providing services within a particular economic environment that are subject to risks and returns
which are different from those of segments operating in other economic environments.
Panalpina Annual Report 2006 77

Consolidated and Annual Financial Statements 2006
78 Panalpina Annual Report 2006
Foreign currencies translation
Functional and presentation currency
The consolidated financial statements of Panalpina Group are presented in Swiss francs (CHF). 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 (functional currency), which is generally the local currency.
Foreign currency transactions
Each entity in the Group determines its own functional currency and items included in the financial statements of each
entity are measured using this functional currency. Transactions in foreign currencies are initially translated into the functional
currency using the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated
in foreign currencies are retranslated at the balance sheet date using the period-end exchange rate. All differences are taken
to profit or loss with the exception of differences on foreign currency borrowings that provide a hedge against a net
investment in a foreign entity. These are taken directly to equity until the disposal of the net investment, at which time they
are recognized in profit or loss. Tax charges and credits attributable to exchange differences on those borrowings are
also dealt with 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. Any goodwill arising on the acquisition are treated as
assets and liabilities of the foreign operation and translated at the closing rate.
Changes in the fair value of monetary securities denominated in foreign currency classified as available for sale are analyzed
between translation differences resulting from changes in the amortized cost of the security and other changes in the
carrying amount of the security. Translation differences related to changes in the amortized cost are recognized in profit or
loss, and others in the carrying amounts are recognized in equity.
Translation of Group companies
The results and financial positions of all Group entities (none of which has the currency of a hyperinflationary economy) that
have a functional currency different from the presentation currency are translated into the presentation currency as follows:
• Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet.
• Income and expenses for each income statement are translated at average exchange rates.
• All resulting exchange differences are recognized as a separate component of equity.
The most important exchange rates used in the reported financial statements are:
Revenue recognition
Balance
Sheet
2006 2005
Income
Statement
Balance
Sheet
Income
Statement
EUR 1.60762 1.57776 EUR 1.55665 1.55095
USD 1.22030 1.24152 USD 1.31230 1.24631
GBP 2.39887 2.31830 GBP 2.26542 2.26783
Net forwarding revenue includes services for forwarding performed to third parties after deducting trade discounts and
volume rebates and excluding sales taxes and value added taxes less charges for customs, duty and taxes. 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 or provisions. Such estimates are based on analyses of existing
contractual or legislatively-mandated obligation, historical trends and the Group’s experience.
Net forwarding revenue is recognized at the time the services are performed. Logistics projects and other services with a
longer period of delivery are recognized in the accounting period in which the service is rendered, by 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.
Forwarding services from third parties includes the corresponding direct production costs excluding the related production
overheads for services rendered.
Contribution margin (gross profit) includes net forwarding revenue from services rendered less related expenses for services
provided by third parties net of customs, duty and taxes.
Other revenues, e.g. dividends, interest, licenses, etc., are accrued as they arise. For the financial statements, they are
recorded in the appropriate period, to the extent that a legal right to receive the payment has been established.

Taxes
Consolidated and Annual Financial Statements 2006
Current income taxes
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted by the balance sheet date.
Current income tax relating to items recognized directly in equity is recognized in equity and not in the income statement.
Deferred income tax
Deferred income tax is provided using the liability method on temporary differences at the balance sheet date between the
tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognized for all taxable temporary differences, except:
• where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit
or loss; and
• in regard to taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused tax losses can be utilized except:
• where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, upon the transaction, affects neither
the accounting profit nor taxable profit or loss; and
• in regard to deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred income tax assets are recognized only to the extent that it is probable that the temporary differences will
reverse in the foreseeable future and taxable profit will be available against which the temporary differences can
be utilized.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset
to be utilized. Unrecognized deferred income tax assets are reassessed at each balance sheet date and are recognized to
the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates when the asset is realized or the liability is settled,
based on tax rates that have been enacted or substantively enacted at the balance sheet date.
Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the income statement.
Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to offset current
tax assets against current income tax liabilities and the deferred income relate to the same taxable entity and the same
taxation authority.
Value added tax and sales tax
Revenues, expenses and assets are recognized net of the amount of value added tax or sales tax except:
• where the value added tax or sales tax incurred on a purchase of assets or services is not recoverable from the taxation
authority, in which case the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense
item as applicable; and
• receivables and payables that are stated with the amount of value added tax or sales tax included.
The net amount of value added tax or sales tax recoverable from, or payable, to the taxation authority is included as part of
receivables or payables in the balance sheet.
Cash and cash equivalents
Cash and cash equivalents included in the balance sheet and cash flow statement represent cash in hand, bank and postal
checks, bills of exchange net, bank current account balances and time deposits and highly liquid money market paper
with an original maturity period of less than three months. Bank current account liabilities are included under short-term
borrowings.
Panalpina Annual Report 2006 79

Consolidated and Annual Financial Statements 2006
80 Panalpina Annual Report 2006
Trade receivables
Accounts receivable from third parties represent invoiced amounts 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. The amount of the provision is the difference between the
asset’s carrying amount and the present value of estimated future cash flows. The change of the provision is recognized in
the income statement within other operating expenses.
Unbilled forwarding services
Unbilled forwarding services represents the deferred expenses and accrued income gross amount due from customers
for forwarding services in progress for which costs incurred exceed progress billings or services are not yet rendered. For
logistics projects and other services with a longer period of delivery, recognized profits are included.
Property, plant and equipment
Property, plant and equipment are stated at cost including expenditures that are directly attributable to the acquisition of
the items, excluding the costs of day-to-day servicing, less accumulated depreciation and accumulated impairment in
value. Such costs include the cost of replacing part of the property, plant and equipment when that cost is incurred, if the
recognition criteria are met.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item will flow to the Group and if the cost of the item can
be measured reliably.
Land and buildings are measured at fair value less depreciation on buildings and impairments charged subsequent to the
date of the revaluation. Depreciation is calculated on a straight line method to allocate their costs over their estimated useful
lives, 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
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on derecognition of the asset, calculated as the difference between the
net disposal proceeds and the carrying amount of the asset, is included in the income statement in the year the asset is
derecognized.
The asset’s residual values, useful life and method of depreciation are reviewed and adjusted if appropriate, at each financial
year-end.
Leases
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at
inception date of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets or the
arrangement conveys a right to use the asset. A reassessment is made after inception of the lease only if one of the following
applies:
• there is a change in contractual terms, other than a renewal or extension of the arrangement;
• a renewal option is exercised or extension granted, unless the term of the renewal or extension was initially included in the
lease term;
• there is a change in the determination of whether fulfillment is dependent on a specified asset; or
there is a substantial change to the asset.

Consolidated and Annual Financial Statements 2006
Where a reassessment is made, lease accounting shall commence or cease from the date on which the change in
circumstances gave rise to the reassessment for the first, third or forth above mentioned scenarios and at the date of
renewal or extension period for the second scenario.
For arrangements entered into prior to 1 January 2005, the date of inception is deemed to be 1 January 2005 in accordance
with the transitional requirements of IFRIC 4.
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item,
are capitalized at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the
minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability
so as to achieve a constant rate of interest on the remaining balance of the liability. Charged finance costs are reflected in
the income statement.
Capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there
is no reasonable certainty that the Group will obtain ownership by the end of the lease term.
Operating lease payments are recognized as an expense in the income statement on a straight line basis over the lease term.
Business combinations and goodwill
Business combinations are accounted for using the acquisition accounting method. This involves recognizing identifiable
assets and liabilities of the acquired business at fair value.
Goodwill acquired in a business combination is initially measured at cost, being the excess of the cost of the business
combination over the Group’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent
liabilities. Following 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, as of the acquisition date, allocated to each
of the Group’s cash generating units, or groups of cash generating units, that are expected to benefit from the synergies
of the combination, respective of whether other assets or liabilities of the Group are assigned to those units or groups of
units. Each unit or group of units represents the lowest level within the Group at which the goodwill is monitored for internal
management purposes and is not larger than a segment based on either the Group’s primary or the Group’s secondary
reporting format determined in accordance with IAS 14 Segment Reporting.
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 in this circumstance is measured based on the relative values of
the operation disposed of and the portion of the cash-generating unit retained.
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.
Intangible assets
Brands, trademarks, customer lists and relationship, software licenses and other intangible assets are initially recorded at
cost. The cost of intangible assets acquired in a business combination is the fair value as of the date of acquisition. Acquired
intangible assets other than a business combination, the initial fair value will be recorded. Following initial recognition,
intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Internally
generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in
the income statement in the period in which the expenditure is incurred.
Intangible assets are amortized on a straight-line basis beginning from the point when they are available for use and over the
useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.
The estimated useful life for software licenses is three to five years; all other intangible assets a maximum of ten years.
The amortization period for an intangible asset with a finite useful life is reviewed at least at each financial year-end. Changes
in the expected useful life of future economic benefits embodied in the asset is accounted for by changing the amortization
period, as appropriate, and treated as changes in accounting estimates. The amortization expense on intangible assets
with finite lives is recognized in the income statement.
Computer software developed internally is capitalized only when the Group can demonstrate the technical feasibility of
completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell
the asset, how the asset will generate future economic benefits, the availability of resources to complete the software
and the ability to measure reliably the expenditure during the development. During the period of development, the asset
is tested for impairment annually. Following the initial recognition of the development expenditure, the capitalized software
development costs are amortized over their estimated useful life (not exceeding three years) and carried at cost less
any accumulated amortization and accumulated impairment losses. Amortization begins when development is complete and
the asset is available for use. Costs of maintaining and modifying existing programs are charged to the income statement.
Panalpina Annual Report 2006 81

Consolidated and Annual Financial Statements 2006
82 Panalpina Annual Report 2006
Impairment of assets
The Group assesses at 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 pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to
sell, an appropriate valuation model is used. These calculations are corroborating 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 at 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
makes an estimate of recoverable amount.
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 to 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.
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.
Financial assets
The Group classifies its financial assets into the following categories: at fair value through profit and loss, loans and
receivables and available-for-sale. The Group does not classify any financial instruments as held-to-maturity. The
classification depends on the nature of the asset and the purpose of the transaction. The management determines the
classification of its financial assets at initial recognition and re-evaluates this designation at every reporting date. The Group
considers whether a contract contains an embedded derivative when the entity first becomes a party to it. The embedded
derivatives are separated from the original contract which is not measured at fair value through profit or loss when the
analysis shows that the economics characteristics and risks of embedded derivatives are not closely related to those of the
host contract.
All normal purchases and sales of financial assets are recognized on the trade date, which is the date that the Group
commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets that require
delivery of assets within the period generally established by convention in the marketplace or regulation.
Financial assets at fair value through profit or loss
The category is subdivided in two categories: Financial assets held for trading and those designated at fair value through
profit or loss at inception. A financial asset is classified if acquired principally for the purpose of generating a profit
from short-term fluctuations in price. The Group’s investments in marketable securities are classified as held-for-trading.
Such investments are included in current assets in the balance sheet. Marketable securities comprise only exchange-traded
and readily realizable investments.
Derivative financial instruments are generally categorized as held-for-trading unless they are designated and qualified as
hedging instruments (the treatment of derivative financial instruments is outlined in the section Financial risk management).
Receivables
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 intent to be sold immediately or in the near-term.
Receivables are presented in current assets for maturities up to twelve months; other receivables are presented in noncurrent
assets.
Loans and receivables are included in the following line items of the balance sheet: Trade receivables (treatment of the trade
receivables is outlined in more details in section Trade receivables), other receivables and other current assets include:
short-term active loans and other receivables and financial and other assets.

Consolidated and Annual Financial Statements 2006
Available-for-sale financial assets
All non-derivative financial assets that are not categorized as held-for-trading or as originated loans and receivables
are classified as available-for-sale. Available-for-sale financial assets which include equity securities are presented as noncurrent
assets, unless they are expected to be sold within twelve months after the balance sheet date.
Purchases and sales of investments are recognized on the settlement date. Investments are initially recognized at fair
value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried
at fair value through profit and loss are initially recognized at fair value and transaction costs are expensed in the income
statement. Investments are derecognized when the rights to receive cash flows from the investments have expired or
have been transferred and the Group has substantially transferred all risks and rewards of ownership. Available-for-sale
financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Originated loans
and receivables are subsequently carried at amortized cost using the effective interest method.
Gains or losses arising from changes in the fair value of the financial assets at fair value through profit or loss category,
including interest and dividend income, are charged to the income statement in the period in which they arise.
Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale are
analyzed between translation differences resulting from changes in amortized cost of the security and other changes in
the carrying amount of the security. The translation differences are recognized in profit and loss, and other changes
in carrying amount are recognized in equity. Changes in the fair value of other monetary securities classified as availablefor-sale
and non-monetary securities classified as available-for-sale are recognized in equity.
When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognized in
equity are included in the income statement as gains and losses from investments. Interest on available-for-sale investments
calculated using the effective interest method is recognized in the income statement. Dividends on available-for-sale equity
instruments are recognized in the income statement when the Group’s right to receive payments is established.
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of
financial assets is impaired. In case of equity securities classified as available-for-sale, a significant or prolonged decline
in the fair value of the security below its cost is considered an indicator that the securities are impaired. If any such evidence
exists for available-for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost
and the current fair value less any impairment loss on that financial asset previously recognized in profit or loss – is removed
from equity and recognized in the income statement. Impairment losses of equity instruments recognized in the income
statement are not reversed through the income statement. Impairment testing of trade receivables is described in sections
the Trade receivables and Impairment of financial assets.
Fair values
The fair value of investments is based on quoted bid prices for exchange traded instruments. For unlisted securities or overthe-counter
transactions, the Group determines the fair value using appropriate valuation techniques (such as net present
value or option pricing models). Those equity investments for which fair values cannot be measured reliably are recognized at
cost less impairment. The Group’s impairment policy is outlined in greater detail in section Impairment of assets.
Impairment of financial assets
The Group assesses at each balance sheet date whether a financial asset or a group of financial assets is impaired.
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 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 at the reversal date.
Panalpina Annual Report 2006 83

Consolidated and Annual Financial Statements 2006
84 Panalpina Annual Report 2006
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 markets observations. The estimates are reviewed, and adjusted if
appropriate, at each financial year-end. The carrying amount of the receivables is reduced through 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.
Borrowings and interest-bearing loans
All borrowings and loans are initially recognized at fair value of the consideration received less directly attributable
transaction cost.
All initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective
interest method. Gains and losses are recognized in the income statement when the liabilities are derecognized also through
the amortization process. Borrowing and interest bearing loan costs are recognized as an expense when incurred.
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 of fair value through profit and loss.
Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term.
Derivatives, including separated embedded derivatives are also classified as held for trading unless they are designated as
effective hedging instruments. Gains or losses on liabilities held for trading are recognized in profit and loss.
Where a contract contains one or more embedded derivatives, the entire hybrid contract may be designated as a financial
liability at fair value through profit or loss, except where the embedded derivative does not significantly modify the cash flows
or it is clear that separation of the embedded derivative is prohibited.
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 and when the Group has
transferred its rights to receive cash flow for the asset and either has substantially transferrred all the risks and rewards of
the asset or 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.
Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) resulting from a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimation can be made of the amount of the obligation. The expense relating to any provision is recorded in the income
statement net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase
in the provision due to the passage of time is recognized as a finance cost.
Provisions are established in particular for:
• employees’ pension fund balances, and
• claims from freight forwarding.

Employee benefits
Consolidated and Annual Financial Statements 2006
Short-term benefits, such as salaries and wages, contributions to compulsory social security schemes, vacation accruals
and bonuses, are accrued periodically and recognized when the employee provides related services. All costs are recognized
to the income statement together with an increase in other payables and accruals in the balance sheet.
In order to provide long-term employee benefits, such as pensions, the Group operates legally separate pension funds,
providing benefits under defined benefit or defined contribution schemes. The plan assets funding the benefits are managed
and invested outside the Group in accordance with legal requirements. Where necessary, provisions for the unfunded portion
of pension benefits, including termination gratuities are recorded in the individual subsidiaries’ balance sheets. The pension
funds are usually financed by contributions from employees and subsidiaries.
A review of subsidiaries’ pension plans in Germany, Taiwan, Japan and Switzerland has shown that they are defined benefit
schemes. They are assessed using the projected unit credit actuarial valuation method. Costs of providing pensions are
recognized in the income statement to spread the regular cost over the service period of employees. The past service
cost is recognized as an expense on a straight line basis over the average period until the benefits becomes vested. If the
benefits are already vested immediately following the introduction of, or changes to, a pension plan, past service costs
are recognized immediately.
The defined benefit obligation for past employee service is measured as the present value of the estimated future cash
outflows using appropriate discount rates. The past post-employment benefits obligation are reviewed annually by
independent actuaries. All actuarial gains and losses are recognized in the periods in which they occur outside the income
statement in the consolidated statement of recognized income and expenses.
Share-based compensation
The Group operates equity-settled, share-based compensation plans. The fair value of the employee services received
in exchange for the grant 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 in the income statement,
with a corresponding adjustment to equity. Other long-term employee benefits exist in the form of anniversary gifts, long
service benefits and health costs. The provisions necessary to provide the benefits are determined and recorded actuarially
(cf. projected unit credit method) with actuarial gains and losses and past service costs, if any, recognized immediately
in the income statement.
3 Financial risk management
The Group is aware that in conducting the core business, various financial risks may impact the financial performance.
Financial risk management is therefore considered an integral part of managing the business. The Group’s activities expose
it primarily to the following financial risk factors: foreign exchange, interest rates, credit, settlement and liquidity. The Group
attempts to minimize potential adverse effects on the financial performance.
The Executive Board defines financial policies and related risk management objectives. A Risk Committee, under the direct
supervision of the Chief Executive Officer, meets on a regular basis and is responsible for establishing financial strategies
which are executed by Corporate Treasury.
There is a clear segregation of duties between front, middle and back office. The middle office is in charge of independently
monitoring compliance of the strategies with reference to the approved Risk Committee decisions. Operational risk and
independent performance calculation are also under middle office supervision.
Clear treasury management guidelines define approved financial transactions and products, counterparty limits and minimum
creditworthiness and transaction limits.
In line with the above-mentioned policy, the Group only enters into derivatives transactions that are directly linked to
underlying recognized and anticipated exposures arising from operating and / or financial assets or liabilities.
Panalpina Annual Report 2006 85

Consolidated and Annual Financial Statements 2006
86 Panalpina Annual Report 2006
Financial risk factors
Currency risk
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures,
primarily in regard to the USD. Foreign exchange risk arises from future commercial transactions, recognized assets and
liabilities as well as net investments in foreign operations.
To manage foreign exchange risks arising from future commercial transactions or recognized assets and liabilities,
entities in the Group use forward contracts, transacted generally with Group Treasury. 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 measurement currency. Group Treasury is responsible for managing the net position using external derivatives
contracts.
Interest rate risk
The absence of significant interest bearing liabilities in general and their short-term nature limit exposure to interest rate risk.
The Group has a clear funding policy that forbids affiliates from borrowing in foreign currency and has a clear preference
for intra-group 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 duration of financial instruments in a
prudent way.
Credit risk
Credit risk stems from a counterparty’s failure to meet its obligation. The Group is exposed to credit risk on financial
instruments mainly with its liquid assets, derivatives assets and trade receivables. Credit risk is managed in accordance with
clear and established guidelines.
Liquid assets are invested with highly rated borrowers and there is no exposure of credit risk.
Trade receivables are strictly monitored and clear guidelines are established in order to set credit limits, approval procedures,
and procedures to monitor overdue items. Concentration of credit risk in trade receivables is immaterial.
Settlement risk
This risk is managed by monitoring counterparty activity, settlement limits and by fixing clear limits.
Liquidity risk
The Group holds highly liquid securities. Liquid assets and marketable securities usually have a short-term horizon in order
to match any funding needs.
Insurance risk
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 has supplemented its insurance program with a claims management and a claims handling system that ensure
transparency of the Group’s risk profile and the proper handling of any claim.
Accounting for derivative financial instruments and hedging activities
Derivative financial instruments are used to hedge foreign currency and interest rate risk. All derivatives are initially
recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured at fair value. The
method of recognizing the resulting gain or loss depends on whether the derivative qualifies as a hedging instrument, and if
so, the nature of the item being hedged.
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
financial 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 (expenses).
For qualifying fair value hedges, the derivative financial instruments are carried at fair value and gains or losses are
recognized in profit or loss. Additionally, the fair value gain or loss on the hedged item attributable to the hedged risk is
recognized in profit or loss.

Consolidated and Annual Financial Statements 2006
Normally, the Group consciously decides not to designate derivative instruments for hedge accounting according to
IAS 39 (although they all are hedging-instruments from an economic point of view). Otherwise, the Group can designate
individual derivatives as either:
• a hedge of the exposure to changes in the fair value of a recognized asset or liability (fair value hedge),
• a hedge of the exposure to variability in cash flows associated with a recognized asset or liability or a highly probable
forecast transaction (cash flow hedges) or
• a hedge of net investments in a foreign operation.
For qualifying cash flow hedges, the derivative hedging instrument is recorded at fair value. The portion of any change in fair
value that is an effective hedge is included in equity, and any remaining ineffective portion is reported in income (expense).
If a hedged forecast transaction results in the recognition of a non-financial asset or liability, the cumulative change in fair
value of the hedging instrument that has been recorded in equity is included in the initial carrying value of that asset
or liability at the time it is recognized. For all other qualifying cash flow hedges, the cumulative changes in fair value of the
hedging instrument that have been recorded in equity are included in income (expense) at the time when the forecasted
transaction affects net income.
For qualifying hedges of net investments in foreign operations, the hedging instruments are accounted in a manner similar
to cash flow hedges. The foreign exchange portion of any change in fair value that is an effective hedge is included in
equity as translation reserve. Any remaining ineffective portion is recorded in income (expense). If the hedged subsidiary is
disposed of, then the cumulative amounts that have been recorded in equity are included in income (expense) at the time
of the disposal.
4 Critical accounting estimates and judgments
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.
Critical accounting estimates and assumptions
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
the note Intangible assets, section Goodwill. The recoverable amounts of cash-generating units (CGU) have been determined
based on value-in-use calculations. These calculations require the use of estimates.
A sensitivity analysis shows that a reduction of free cash flow of the tested CGU of up to 10% at most would not result in an
impairment of goodwill.
Claim provisions
A number of subsidiaries are subject to litigation arising out of the normal conduct of their businesses, as a result of which
claims could be raised against them.
The Group used for the above mentioned provision the conservative actuarial calculation, 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. If the management decided to use the optimum actuarial calculation
method, which takes only into consideration the linear loss development according to historical figures, the carrying amount
of claim provision would be approximately CHF 2.7 million lower. If the used actuarial calculation would differ by 10%
from the management’s estimates, the carrying amount of claim provision would be approximately CHF 1.8 million higher.
Income taxes
The Group is subject to income taxes in numerous jurisdictions. Significant judgments are required in determining the current
and deferred assets and liabilities 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 internal and external factors may have favorable or unfavorable effects on
the income tax assets. These factors include, but are not limited to, changes in tax laws regulations and / or rates, changing
interpretation of existing tax laws or regulations and changes on management estimations. Such changes that arise could
affect the assets and liabilities recognized in the balance sheet in future periods.
Panalpina Annual Report 2006 87

Consolidated and Annual Financial Statements 2006
5
88 Panalpina Annual Report 2006
Segmental reporting
Reporting by geographical segments
Europe / Africa /
Central and South
Middle East / CIS North America
America
in million CHF 2006 2005 2006 2005 2006 2005
External forwarding services 4,418 3,929 1,699 1,536 670 662
Intra-group forwarding services 2,585 2,407 492 455 184 130
Net forwarding revenue 7,003 6,336 2,191 1,991 854 792
Forwarding services from third parties (6,087) (5,535) (1,884) (1,718) (717) (672)
Segment contribution margin (gross profit) 916 801 307 273 137 120
Other segment expenses (753) (719) (296) (270) (118) (109)
Segment operating result (Ebit) 163 82 11 3 19 11
Financial result
Earnings before taxes
Taxes on income
Consolidated net earnings
Europe / Africa /
Central and South
Middle East / CIS North America
America
in million CHF 2006 2005 2006 2005 2006 2005
Additional information
Segment assets 1,328 1,084 322 339 140 123
Segment liabilities 702 602 152 144 48 40
Capital expenditure 35 37 9 (10) 5 3
Depreciation of property, plant and equipment 22 24 6 6 2 2
Amortization of intangible assets 10 8 1 1 1 1
Impairment of financial assets 0 0 0 0 0 0
The Group organizes its business primarily by regions. Segment information is prepared on the basis of the location
of the assets. Usually, the location of the customers does not differ from the location of the assets in the particular region.
Intersegmental services are charged at market rates. Segment expenses are shown after elimination of intra-group
transactions.
Reporting by business segments
Air freight
Ocean freight
Supply Chain
Management
in million CHF 2006 2005 2006 2005 2006 2005
Net forwarding revenue 3,713 3,408 2,826 2,399 1,196 1,142
Forwarding services from third parties (3,026) (2,772) (2,334) (1,996) (784) (773)
Segment contribution margin 687 636 492 403 412 369
Total assets 838 788 510 536 210 262
Capital expenditure 20 13 11 11 8 17
The Group’s business can be divided into three divisions: Air Freight, Ocean Freight and Supply Chain Management. The
assets allocated to the divisions mainly comprise trade receivables, work in progress, accruals, tangible fixed assets and
intangible assets. Cash, financial investments and assets related to the central management functions are not allocated.

Asia / Pacific
Eliminations
Total
2006 2005 2006 2005 2006 2005
948 821 7,735 6,948
821 577 (4,082) (3,569) 0 0
1,769 1,398 (4,082) (3,569) 7,735 6,948
(1,538) (1,184) 4,082 3,569 (6,144) (5,540)
231 214 0 0 1,591 1,408
(163) (144) (1,330) (1,242)
68 70 261 166
(21) (8)
240 158
(56) (38)
184 120
Non segment Non segment
Asia / Pacific
Total
assets
liabilities
Group
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
259 215 2,049 1,761 59 59 2,108 1,820
180 117 1,082 903 48 59 1,130 962
7 16 56 46
5 4 35 36
4 2 16 12
0 0 0 0
Unallocated
Total
2006 2005 2006 2005
0 0 7,735 6,949
0 0 (6,144) (5,541)
0 0 1,591 1,408
550 234 2,108 1,820
17 5 56 46
Consolidated and Annual Financial Statements 2006
Panalpina Annual Report 2006 89

Consolidated and Annual Financial Statements 2006
6
7
8
9
90 Panalpina Annual Report 2006
Personnel expenses
in thousand CHF 2006 2005
Salaries and wages 698,415 665,691
Cost of defined contribution plans 43,396 41,591
Cost of defined benefit plans (Note 23) 4,438 3,876
Social security costs 75,785 70,463
Share based compensation (Note 24) 1,767 1,817
Other personnel related expenses 63,056 60,279
Total personnel expenses 886,857 843,717
Number of employees (unaudited) 14,304 13,583
Other operating expenses
in thousand CHF 2006 2005
Administrative expenses 27,038 24,287
Communication expenses 71,114 65,321
Rent and utilities expenses 173,472 155,667
Travel and promotion expenses 54,291 48,102
Insurance expenses and claims 30,045 30,202
Bad debt and collection expenses 1,973 7,061
Other operating expenses 33,275 31,095
Total operating expenses 391,208 361,735
Gains and losses on sales of non-current assets
in thousand CHF 2006 2005
Gains on sales of investments 47 36
(Losses) gains on sales of property, plant and equipment (146) 11,918
Total net (losses) gains on sales of non-current assets (99) 11,954
In the current year, there were no material net losses from the sale of assets. In 2005, the net gains from the sale of assets
resulted essentially from the sale of operational property in the USA and Canada.
Financial result
in thousand CHF 2006 2005
Interest income 11,553 8,781
Other financial income 677 1,026
Exchange differences 0 5,831
Financial income 12,230 15,638
Interest expenses (24,362) (18,247)
Exchange differences (3,825) 0
Bank charges (3,786) (3,787)
Other financial expenses (1,184) (1,355)
Financial expense (33,157) (23,389)
Net financial result (20,927) (7,751)

10
11
Taxes on income
Consolidated and Annual Financial Statements 2006
in thousand CHF 2006 2005
Current income taxes 56,123 42,598
Deferred income taxes 438 (5,022)
Total taxes on income 56,561 37,576
The following table reconciles expected and disclose the actual tax expenses. The expected tax expenses are determined by
multiplying the result before income taxes and the tax rate applicable in Switzerland.
in thousand CHF 2006 2005
Earnings before taxes 240,071 157,882
Tax at the applicable tax rate of 25% (2005: 25%) 60,018 39,471
Effect of differing national tax rates (8,921) (14,294)
Utilization of non-capitalized tax loss carry-forwards (559) (1,854)
Capitalization of deferred tax assets from previous periods 0 (1,794)
Not recognized loss carry-forwards 4,934 4,557
Effect of changes in the tax rate on temporary differences (349) 2,872
Withholding tax on dividends received 1,257 1,233
Expenses not deductible for tax purposes and non taxable income 1,303 4,317
Miscellaneous (1,122) 3,068
Actual tax charge 56,561 37,576
Expenses not deductible for tax purposes were primarily in Indonesia, Columbia, Argentina, Belgium, the USA and Italy
(2005: in Australia, Germany, Russia, UK, Venezuela, the USA and Italy).
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the net earnings attributable to equity holders of the Company by the
weighted average number of ordinary shares outstanding during the year, excluding ordinary shares purchased by the
Company and held as treasury shares (see note 20).
in thousand CHF 2006 2005
Consolidated net earnings attributable to equity holders of the Company 181,599 117,355
Weighted average number of ordinary shares outstanding 24,744 24,932
Basic earnings per share (in CHF) 7.34 4.71
Panalpina Annual Report 2006 91

Consolidated and Annual Financial Statements 2006
12
92 Panalpina Annual Report 2006
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 has only share options outstanding, which 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 2006 2005
Consolidated net earnings attributable to equity holders of the Company 181,599 117,355
Weighted average number of ordinary shares outstanding 24,744 24,932
Adjustments for share options 21 43
Weighted average number of ordinary shares for diluted earnings per share 24,765 24,975
Diluted earnings per share (in CHF) 7.33 4.70
Trade receivables
in thousand CHF 2006 2005
Commercial clients 1,174,898 1,105,723
Agents 38,757 39,336
Total trade receivables (gross) 1,213,655 1,145,059
Provision for impairment (28,196) (36,616)
Total trade receivables (net) 1,185,459 1,108,443
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.
The creation and usage of provisions for impaired trade receivables have been included in other operating expenses in the
income statement.
The following summarizes the movement in the provision for impairment of trade receivables:
in thousand CHF 2006 2005
Balance on 1 January 36,616 34,838
Receivables written off during the year as uncollective (7,658) (10,638)
Changes in provision for doubtful accounts (762) 12,416
Balance on 31 December 28,196 36,616
As of 31 December 2006, management decided, based on analyses of historical trends, the Group’s experience and market
observations to adjust the estimates for allowance of trade receivables not individually impaired. The effect of this change in
accounting estimate has resulted in approximately CHF 11 million for the year under review.

13
14
Other receivables and other current assets
Property, plant and equipment
Consolidated and Annual Financial Statements 2006
in thousand CHF 2006 2005
Office supplies 1,478 1,335
Taxes (VAT, withholding tax) 31,991 22,226
Accrued income 845 1,300
Accrued interest income 785 42
Personnel advances 6,160 1,477
Social security and payroll taxes 0 3,672
Short term deposits 4,734 3,335
Prepaid rent expenses 424 3,845
Supplier rebates 11,346 8,598
Others 20,211 18,652
Total other receivables and other current assets 77,974 64,482
in thousand CHF
Land and
buildings
Machinery
and
equipment
Vehicles
Construc-
tion in
progress
Acquisition costs
Balance on 1 January 141,314 227,159 48,047 108 416,628 419,467
Translation differences 317 (3,564) (896) (8) (4,151) 29,852
Change in the scope of consolidation 0 141
Additions 5,833 26,951 13,326 2,109 48,219 45,081
Disposals (2,040) (14,571) (3,226) (29) (19,866) (76,462)
Reclassifications 1,029 51 (1,029) 51 (1,451)
Balance on 31 December 146,453 236,026 57,251 1,151 440,881 416,628
Accumulated depreciation
Balance on 1 January 61,337 176,469 26,372 0 264,178 260,235
Translation differences 118 (2,554) (286) (2,722) 18,985
Additions 8,055 22,920 3,802 34,777 36,242
Disposals (1,135) (13,309) (2,507) (16,951) (49,833)
Reclassifications 0 51 51 (1,451)
Balance on 31 December 68,375 183,577 27,381 0 279,333 264,178
Net book value on 1 January 79,977 50,690 21,675 108 152,450 159,232
Net book value on 31 December 78,078 52,449 29,870 1,151 161,548 152,450
Of which net book value of assets
acquired under finance leases 71 1,593 1,664 80
Rentals amounting to CHF 84.2 million (2005: CHF 77.2 million) and CHF 17.1 million (2005: CHF 16.0 million) relate to the
lease of machinery, equipment and vehicles, respectively and are included in the income statement.
Total
2006
Total
2005
Panalpina Annual Report 2006 93

Consolidated and Annual Financial Statements 2006
15
94 Panalpina Annual Report 2006
Financial, other and intangible assets
Available-for-sale investments are only equity investments for which no active market with publicly quoted market values
exist. Therefore, it has been impossible to determine the market value of these equity investments and the investments
are carried at historical cost less identified impairment.
In 2006, impairment charges of CHF 0.5 million (2005: CHF 0.2 million) were recorded to net available-for-sale investments
relating to the valuation of an equity investment. No additional impairment charge was necessary for 2006.
The fair values of unlisted securities are based on discounted cash flows using a rate based on the market interest rate
and the risk premium specific to the unlisted securities.
Receivables include third party loans of CHF 1.9 million (2005: CHF 0.8 million) and mainly rental and guarantee deposits of
CHF 8.2 million (2005: CHF 10.1 million).
The net book value of other intangible assets comprises:
• Software in the amount of CHF 18.9 million (2005: CHF 26.4 million). Software includes internally generated capitalized
software development costs of CHF 15.0 million (2005: CHF 3.4 million).
• Other intangible assets consist mainly of acquired brands and customer relations of CHF 22.0 million
(2005: CHF 21.4 million).
Impairment test for goodwill
Available-
for-sale
investments
Financial and other assets
Receiv-
ables
Pension
plan
asset
Intangible assets
Goodwill
Other
intangible
assets
Acquisition costs
Balance on 1 January 26,173 10,945 13,448 60,203 91,423 202,192 215,252
Translation differences (31) (389) 771 3,057 3,408 8,972
Change in the scope of consolidation 0 11,206
Additions 121 4,477 8,761 13,359 23,880
Disposals (102) (878) (1,404) (1,526) (3,910) (11,875)
Reclassifications 0 (45,243)
Balance on 31 December 26,161 14,155 12,044 60,974 101,715 215,049 202,192
Accumulated depreciation
or impairment losses
Balance on 1 January 7,525 0 0 0 42,834 50,359 83,580
Translation differences (9) 2,549 2,540 3,661
Additions 511 16,383 16,894 12,295
Disposals (32) (1,435) (1,467) (3,934)
Reclassifications 0 (45,243)
Balance on 31 December 8,004 (9) 0 0 60,331 68,326 50,359
Net book value on 1 January 18,648 10,945 13,448 60,203 48,589 151,833 131,672
Net book value on 31 December 18,157 14,164 12,044 60,974 41,384 146,723 151,833
Goodwill is allocated to the Group’s cash-generating units (CGUs) identified 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.
Total
2006
Total
2005

16
A summary of the goodwill allocation per CGU is presented below:
The following key assumptions have been used for the value-in-use calculations of each CGU:
Consolidated and Annual Financial Statements 2006
in thousand CHF 2006 2005
Panalpina Air & Ocean AG 31,151 31,151
Panalpina World Transport (Nigeria) Ltd. 12,316 12,316
Grampian International Freight Aberdeen & Beverwijk 13,136 12,395
Panalpina World Transport (Singapore) Pte. Ltd. (JANCO acquisition) 4,371 4,341
Total goodwill 60,974 60,203
The management determined budgeted growth rate based on past performance and its expectations for market
development. The operating expenses in % of forwarding revenues are consistent with the forecasts and past experience.
The WACC used are pre-tax and reflect specific risks relating to the relevant CGUs.
Based on the impairment tests of the listed goodwill positions, there was no need for the recognition of any impairment
losses in fiscal year 2006.
Other liabilities
Switzerland Europe Africa Asia
Growth rate 1 1.50% 3.50% 4.85% 4.29%
Operating expenses in % of forwarding revenues 2 96.43% 90.74% 92.87% 96.87%
WACC 3 8.56% 9.34% 32.40% 10.24%
1 Weighted average growth rate used to extrapolate cash flows beyond the budget period
2 Budgeted operating expenses in % of forwarding revenues
3 Pre-tax discount rate applied to the cash flow projections
in thousand CHF
Outstanding
vacation
entitlement
Claims
Employee
benefits and
others
Other liabilities
Balance on 1 January 24,504 21,165 22,247 67,916 61,221
Translation differences (275) 79 (196) 2,717
Change in scope of consolidation 0 237
Additional accruals 5,046 1,472 27,038 33,556 30,309
Reversals of other liabilities (6,182) (6,182) (5,209)
Charged in income statement 5,046 1,472 20,856 27,374 25,100
Amount paid (4,647) (14,005) (18,652) (21,359)
Balance on 31 December 24,628 22,637 29,177 76,442 67,916
Other liabilities include, apart from outstanding vacation entitlement, personnel profit participation, social security and payroll
taxes, and current portion of short-term claims payables.
Total
2006
Total
2005
Panalpina Annual Report 2006 95

Consolidated and Annual Financial Statements 2006
17
18
96 Panalpina Annual Report 2006
Provisions
in thousand CHF
Employee benefits provisions include the current portion of net liabilities relating to defined benefit plans of CHF 42.1 million
(2005: CHF 29.8 million).
The balance for claims represents a provision for certain claims brought forward against the Group by customers and
forwarding agents. The balance as at 31 December is expected to be utilized within the next two to three 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 for the past delivered services which are not yet reported.
Deferred taxes
Deferred taxes are related to the following balance sheet items:
Employee
benefits
Claims
and other
provisions
Long-term provisions
Balance on 1 January 59,104 24,629 83,733 69,722
Translation differences 610 166 776 2,007
Addition 17,207 16,197 33,404 17,006
Reversal of unused amount (1,253) (1,166) (2,419) (1,506)
Charged in income statement 15,954 15,031 30,985 15,500
Utilized during the year (3,209) (10,941) (14,150) (3,496)
Balance on 31 December 72,459 28,885 101,344 83,733
Deferred tax assets Deferred tax liabilities
in thousand CHF 2006 2005 2006 2005
Receivables 8,385 10,290 (1,204) (1,044)
Fixed assets 2,936 2,524 (16,870) (14,018)
Provisions 12,885 7,365 (1,887) (3,952)
Other balance sheet captions 11,023 18,880 (8,348) (15,902)
Deductible loss carry forwards 4,493 4,686 0 0
Total 39,722 43,745 (28,309) (34,916)
Net deferred tax assets (liabilities) 11,413 8,829
In this summary, deferred tax assets and liabilities are shown gross by balance sheet captions. For balance sheet disclosure
purposes, the liabilities and assets are reported net by each subsidiary, resulting in the following balance sheet presentation:
in thousand CHF 2006 2005
Deferred tax assets 27,286 29,999
Deferred tax liabilities (15,873) (21,170)
Net deferred tax assets (liabilities) 11,413 8,829
Total
2006
Total
2005

19
The gross movement on the deferred income tax account is as follows:
Consolidated and Annual Financial Statements 2006
in thousand CHF 2006 2005
Balance on 1 January 8,829 594
Translation differences (1,259) 3,669
Change in the scope of consolidation 0 (1,439)
Income statement charge (438) 5,022
Tax charged to equity due to IAS 19 4,281 983
Balance on 31 December 11,413 8,829
During the year being reported, all deferred tax assets on taxable temporary differences were recognized. In 2006, the
amount of CHF 182,000 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) 2006 2005
2006 0 5,143
2007 2,305 3,336
2008 971 279
2009 1,673 138
2010 971 3,502
2011 971 0
Later 47,478 28,475
Total unrecognized tax loss carry-forwards 54,370 40,873
Unrecognized tax loss carry-forwards increased in Switzerland, Austria, Brazil, Ireland, Kazakhstan, Turkey and Australia.
The tax loss carry-forwards expired in Ecuador and Equatorial Guinea.
On 31 December 2006, undistributed earnings of CHF 382.6 million (2005: CHF 303.0) have been retained by subsidiary
companies for reinvestment. No provision is made for income taxes that would be payable upon the distribution of such
earnings. If the earnings were remitted, an income tax charge could result based on the tax statutes currently in effect.
Borrowings
Short-term borrowings (in thousand CHF) 2006 2005 1
Bank borrowings 20,185 15,307
Finance lease liabilities 496 0
Other loans 3,558 3,492
Total short-term borrowings 24,239 18,799
Long-term borrowings (in thousand CHF) 2006 2005
Finance lease liabilities 1,032 44
Other loans 2,216 1,600
Total long-term borrowings 3,248 1,644
1 Certain comparatives have been reclassified to conform with the current period’s presentation.
The weighted average interest rate of bank borrowings and other financing liabilities is 5.97% (2005: 5.05%). The carrying
amounts of short term bank borrowings approximate their fair value.
Panalpina Annual Report 2006 97

Consolidated and Annual Financial Statements 2006
20
98 Panalpina Annual Report 2006
Maturity of long-term financial debts (excluding lease liabilities) 2006 2005
in thousand CHF
2006 0 2
2007 19 1,598
2008 2,197 0
2009 0 0
Later 0 0
Total 2,216 1,600
The carrying amounts of the Group’s borrowings are denominated in the following currencies:
in thousand CHF 2006 2005 1
USD 17,113 8,830
XAF 6,225 4,054
GBP 1,494 1,342
PLN 752 0
AUD 499 44
SGD 364 1,614
MYR 333 143
SKK 265 0
CHF 240 205
NGN 141 1,250
Others 61 2,962
Total 27,487 20,443
1 Certain comparatives have been reclassified to conform with the current period’s presentation.
Share capital
in thousand CHF
Outstanding
number of shares
(numbers)
Ordinary
shares
Treasury
shares
On 1 January 2006 24,750,000 50,000 (20,000) 30,000
Treasury shares
Sold 30,610 5,627 5,627
Purchased (102,810) (12,392) (12,392)
Sold under employee share plan 54,520 4,551 4,551
Sold under employee option plan 89,897 7,192 7,192
On 31 December 2006 24,822,217 50,000 (15,022) 34,978
The share capital is presented by 25 million issued shares (2005: 25 million) of CHF 2.00 par value, fully paid-in.
As of 31 December 2006, the number of outstanding shares amounted to 24,822,217 shares (2005: 24,750,000) and the
number of treasury shares to 177,783 (2005: 250,000). Treasury shares have been deducted from shareholders’ equity.
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 an 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. The Board of Directors has not yet made use of this authorization.
The Company has no conditional share capital.
Total

21
22
Consolidated and Annual Financial Statements 2006
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. In 2006,
the dividend paid was CHF 49 million (2005: CHF 60 million). Except for 308,200 treasury shares, all shares were dividendbearing.
Minority interests
in thousand CHF 2006 2005
Balance on 1 January (net) 6,957 3,484
Translation differences (750) 618
Interest in net earnings 1,911 2,951
Dividend paid (98) (96)
Total net minority interests 8,020 6,957
Derivative financial instruments
The year-end contract value is calculated on the total volume of individual contracts using the fair value at year-end.
The positive replacement value represents the theoretical profit if the open currency contracts had been 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. The change in the fair value has been recognized in the income statement because
the instruments did not fulfill the conditions for hedge accounting.
Positive
Negative
Contract Value
Replacement Value
Replacement Value
in thousand CHF 2006 2005 2006 2005 2006 2005
Forward foreign exchange contracts 812,909 1,073,294 2,456 1,995 (3,888) (6,643)
Forward trading hedges 693,904 879,290 2,435 1,922 (3,500) (6,157)
Foreign exchange options 119,005 194,004 21 73 (388) (486)
Positive
Negative
Contract Value
Replacement Value
Replacement Value
in thousand CHF 2006 2005 2006 2005 2006 2005
Terms of the forward foreign
exchange contracts 812,909 1,073,294 2,456 1,995 (3,888) (6,643)
0 – 3 months 807,460 1,054,206 2,343 1,813 (3,710) (6,537)
4 – 12 months 5,449 19,088 113 182 (178) (106)
Panalpina Annual Report 2006 99

Consolidated and Annual Financial Statements 2006
23
100 Panalpina Annual Report 2006
Derivative financial instruments are spread over the following currencies:
Forward foreign
exchange contracts
in thousand CHF 2006 2005
USD 446,553 597,260
EUR 186,510 234,260
GBP 62,514 36,133
HKD 34,152 89,599
AUD 20,956 16,120
CAD 18,046 12,290
SEK 16,114 6,147
SGD 10,322 56,600
JPY 8,530 12,707
NZD 1,014 418
Other 8,198 11,760
Total 812,909 1,073,294
Employee 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 are predominantly in Switzerland and Germany. The cost of the
defined contribution plans is charged to personnel expenses. For defined benefit plans, the plans domiciled in Switzerland
have an excess of assets over liabilities. The part of the surplus that the management estimates to generate an economic
benefit to the Group in form of reductions in future contributions is capitalized. The amounts recognized in the balance sheet
are determined as follows:
in thousand CHF 2006 2005
Fair value of plan assets 266,449 261,744
Defined benefit obligation (DBO) funded (224,170) (216,412)
(Deficit) surplus 42,279 45,332
Unrecognized surplus due to paragraph 58b (33,398) (35,925)
Defined benefit obligation (DBO) unfunded (38,981) (25,725)
(Liability) / asset recognized in balance sheet (30,100) (16,318)
The following amounts were recorded in the income statement relating to defined benefit plans:
in thousand CHF 2006 2005
Net pension cost for year ending
Current service cost (13,507) (14,432)
Recognized past service cost 0 2,729
Interest cost (8,582) (9,068)
Expected return on assets 11,764 10,660
Member contributions 5,180 5,568
Settlements / curtailments 707 667
Net periodic pensions (cost) credit (4,438) (3,876)

The movement in the defined benefit obligation over the year is as follows:
Consolidated and Annual Financial Statements 2006
in thousand CHF 2006 2005
Changes in defined benefit obligation (DBO)
DBO beginning of year (242,137) (242,836)
Current service cost (13,507) (14,432)
Recogized past service cost 2,729
Interest cost (8,582) (9,068)
Actuarial gains (losses) recognized in equity (14,210) 9,832
Benefit paid 17,746 11,990
Liabilities extinguished on settlement (1,412) 0
Currency impact (1,049) (352)
DBO end of year (263,151) (242,137)
The movement in the fair value of plan assets of the year is as follows:
in thousand CHF 2006 2005
Changes in fair value of plan asset
Fair value beginning of year 261,744 237,033
Employer contributions 6,068 7,720
Member contributions 5,180 5,568
Expected return on assets 11,764 10,660
Actuarial gains (losses) recognized in equity (514) 11,993
Benefit paid (17,729) (11,323)
Currency impact (64) 93
Fair value end of year of plan asset 266,449 261,744
The actual return on plan assets was CHF 22.7 million (2005: CHF 10.9 million).
An analysis of the amounts recognized in equity is shown in the table below:
in thousand CHF 2006 2005
Analysis of amounts recognized in equity
Recognized equity on 1 January 79,160 76,201
Actuarial gains (losses) plan assets 514 (11,993)
Actuarial gains (losses) DBO 14,210 (9,832)
Effect of impact of limit in paragraph 58b (2,527) 24,709
Currency impact 2,146 75
Recognized equity on 31 December 93,503 79,160
Plan assets are comprised as follows:
in thousand CHF 2006 2005
Major Categories of plan assets
Cash and cash equivalents 10,823 10,932
Equity Investments 81,509 77,247
Bonds 143,111 142,550
Investment funds 24,448 24,218
Insurance contracts 6,558 6,797
Panalpina Annual Report 2006 101

Consolidated and Annual Financial Statements 2006
24
102 Panalpina Annual Report 2006
The following weighted parameters have been chosen as the actual basis:
The overall expected return of plan assets is based on country-specific long-term market expectations at the beginning of
the period.
A 5-years summary of the Group’s defined benefit plans is shown in the table below:
Share options
2006 2005
Discount rate 3.45% 3.45%
Expected return on pension plan assets 3.08% 3.30%
Salary increase 1.50% 1.70%
Rate in pension increase 0.50% 0.40%
in thousand CHF 2006 2005 2004 2003 2002
DBO 263,151 242,137 242,836 222,789 206,247
Plan assets (266,449) (261,744) (237,033) (226,302) (205,822)
(Deficit) surplus (3,298) (19,607) 5,803 (3,513) 425
Experienced gains (losses) on plan liability (14,210) 9,832 (10,692) (2,756) 9,178
Experienced gains (losses) on plan assets (514) 11,993 874 10,360 (39,724)
Share and option ownership programs are offered to members of the Board of Directors, members of the Executive Board
and selected preferential employees. The Group operates the following programs:
Management Incentive Program I (MIP I)
Participants of the program were offered a certain amount of 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 the program had been allocated two options,
each option entitling them to purchase one further share at the offering price. The options can not be settled in cash. The
options are exercisable unconditionally starting one year from the grant date. The options have a remaining contractual
option term of two years.
Management Incentive Program II (MIP II)
Participants 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 SWX Swiss Exchange during the months January to May in the respective year of purchase.
The difference between the discounted share price at grant date and the share price paid by the participants is recognized
as personnel expenses at the date of the issue of the shares. The shares are subject to a 1-year lock-up period. During the
reporting period, participants of the program subscribed 54,520 of those shares.
For every purchased share under this plan, the Group grants one option free of charge to the participants. 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 SWX Swiss Exchange during the months January to May in 2006. The share options cannot be settled
in cash.

Consolidated and Annual Financial Statements 2006
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:
Movements in the number of share options outstanding and their related average exercise prices are as follows:
Out of the 163,645 outstanding options (2005: 199,242 options), 109,345 options (2005: 0 options) were exercisable.
In 2006 89,897 options were exercised (2005: 0 options) at a strike price of CHF 80.00.
Share options outstanding at the end of the year have the following expiry date and exercise prices:
Management
Incentive
Program II
Management
Incentive
Program I
in CHF 2006 2005
Market price of share 114.00 80.00
Exercise price of option 111.30 80.00
Expected volatility (in %) 30.00 22.59
Option life (in years) 5 2
Dividend yield (in %) 1.78 2.05
Risk-free interest rate based on Swiss government bonds (in %) 2.670 1.103
Average exercise
price
per share
(in CHF)
2006 2005
Options
(number)
Average exercise
price
per share
(in CHF)
Options
(number)
Options outstanding at on 1 January 80.00 199,242 0.00 0
Granted 111.30 54,520 80.00 199,242
Exercised 80.00 (89,897)
Forfeited options
Expired options
111.30 (220)
Options outstanding on 31 December 90.39 163,645 80.00 199,242
Options exercisable on 31 December 80.00 109,345 0.00 0
Exercise price per
share (in CHF)
The Group holds own shares in order to meet its obligations under the Management Incentive Programs. These own shares
are deducted from equity.
2006
Number of
options
expiring at
year-end
2008
2009
2010
2011
80.00 109,345
2012 111.30 54,300
Total 90.39 163,645
Panalpina Annual Report 2006 103

Consolidated and Annual Financial Statements 2006
25
104 Panalpina Annual Report 2006
The cost of share-based payments was as follows:
in CHF 2006 2005
Employee share plan 1,311,052 0
Option plan 456,183 1,817,312
Total cost share-based payments 1,767,235 1,817,312
Related parties
Board of Directors and management compensation
The members of the Board of Directors receive a fixed compensation and participate in certain equity compensation plans.
Compensation to the management consists of a fixed portion and a variable portion, which depends on the course
of business and the individual manager’s performance. In addition management receives indirect benefits and is able to
participate in certain equity compensation plans.
In the normal course of business the following remuneration was paid:
in thousand CHF
Numbers
of persons
Annual
salary 1
Termi-
nation
benefits
Other
benefits 2
Value of
options
at grant
date
Total
Compen-
sation
2006
There were no contributions or donations to members of their families.
In 2006 the Group paid the following social insurance and pension contributions in regard to the Executive Board.
Total
Compen-
sation
2005
Remuneration of members
of the Board of Directors 6 1,189 0 0 51 1,240 2,960
Remuneration of the
Executive Board 8 6,404 2,709 197 36 9,346 5,942
Total remuneration 14 7,593 2,709 197 87 10,586 8,902
1 Salaries incl. fixed remuneration, salary, bonus and discount on shares granted.
2 Other benefits incl. expense allowance and fringe benefits.
3 Executive Board remuneration includes the compensation of the executive member of the Board of Directors.
in thousand CHF
Social
insurance
Pensions
Remuneration of the
Executive Board 201 366
Total social contributions 201 366
Shareholders, pension funds, associated companies and all subsidiaries are defined as parties related to the Group. Apart
from the transactions with related parties mentioned here, we refer to note 23.
In 2006, the Group paid contributions to pension funds of CHF 5.9 million (2005: CHF 7.5 million).

26
27
28
Cash flow statement
Business combinations / disinvestments
In 2006, there were no business combinations nor were any significant subsidiaries sold.
Additional information
Consolidated and Annual Financial Statements 2006
Cash flow from operating activities (in thousand CHF) 2006 2005
Consolidated net income before taxes 240,071 157,882
Depreciation of property, plant and equipment (Note 14) 34,777 36,242
Impairment of financial investments (Note 15) 511 174
Amortization of intangible assets (Note 15) 16,383 12,121
(Decrease) increase in long-term provisions 18,722 12,493
Loss (gain) on sales of fixed assets (Note 8) 146 (11,918)
Loss (gain) on sales of investments (Note 8) (47) (36)
Adjustment of net periodic pension costs (3,868) (1,888)
Interest income (Note 9) (11,553) (8,781)
Interest expense (Note 9) 24,362 18,247
Share-based payments (Note 24) 1,767 1,817
Cash flow before interest and taxes 321,272 216,353
Decrease (increase) receivables and other current assets (153,835) (100,614)
(Decrease) increase payables, accruals and deferred income 143,453 73,683
(Decrease) increase other liabilities 27,374 25,149
Total cash flow from operating activities 338,264 214,571
Contractual commitments on non-cancellable operating lease contracts 2006 2005
in thousand CHF
2006 0 112,674
2007 120,959 60,745
2008 72,005 49,593
2009 58,638 42,279
2010 51,827 36,823
2011 40,829 0
Later 115,681 94,525
Total residual commitments 459,938 396,639
Included in the residual lease commitments is an operating lease contract for an aircraft (total CHF 18.5 million), leased by
Panalpina Air & Ocean Ltd. The contract with a yearly notice period expires in August 2009.
Obligations under finance lease contracts 2006 2005
in thousand CHF
2007 496 44
2008 462 0
2009 462 0
2010 108 0
Total residual commitments 1,528 44
Panalpina Annual Report 2006 105

Consolidated and Annual Financial Statements 2006
106 Panalpina Annual Report 2006
Pledged assets
The value of pledged assets amounts to CHF 13,000 (prior year CHF 12,000).
Pending legal claims
In addition to the matters discussed under insurance risk, 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.
Pantainer Ltd., the Group’s NVOCC (Non-Vessel Operating Common Carrier), is facing lawsuits concerning liability claims in
an unspecified amount in connection with two incidents in which it is alleged that fires occurred, allegedly due to containers
shipped under Pantainer bills of lading, containing chemicals that were not declared as hazardous cargo. In the first case,
the container ship was seriously damaged and the extent of damage to other cargo on board the vessel is understood to
be significant. Legal proceedings in connection with this aforementioned case have been initiated against Pantainer Ltd.
The pending lawsuits in London and Rotterdam contain actions for damages in an unspecified amount and for a declaratory
judgment against Pantainer Ltd. In addition, a formal payment demand in an amount of approximately USD 130 million has
been filed against Pantainer Ltd. in Basel to interrupt the statute of limitations.
Part of this unquantified claim against Pantainer is for an indemnity in regard to cargo claims brought against other parties
involved in the carriage of the containers. The amount of these claims is limited to approximately USD 11 million, in
accordance with a limitation decree obtained by one of those parties. This is likely to reduce the overall amount of the claim
in regard to loss of or damage to cargo, but it is not yet clear how substantial the reduction may be. The limit does not apply
in relation to damage to the vessel.
In the second case, as a consequence of a fire – which was able to be extinguished shortly after it broke out – 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 and damage /
loss of cargo respectively potential damages to the vessel. Formal legal proceedings have been launched in Tokyo against
the shipper, which in turn has opened third party proceedings against Pantainer Ltd. and other companies of the Group. The
value in dispute amounts to approximately CHF 7 million.
In both cases, Pantainer Ltd. has received information from the shippers of the cargo that the chemicals were not dangerous.
Furthermore, Pantainer Ltd. has filed/prepared recovery actions against certain other parties involved.
These cases will raise complex issues as to the exact chemical composition of the cargo, its characteristics and the likely
cause of the fires. To date, the proceedings have not progressed far enough for Pantainer to reach a definitive view of
its potential liability exposure, the insurance coverage actually available or the realistic prospects of a recovery from other
parties. However, in the first case, evidence has recently emerged which indicates that the fire may have been caused by
the fault of the vessel and / or the crew. This evidence is currently being evaluated and tested.
In an initial reaction in June 2005, the insurance company has denied coverage for the first case, but accepted coverage for
the second case. To date, no specific provisions have been made.
Subsequent events
Since the balance sheet date, no events have become known for which a disclosure is required.

29
Principal group companies and participations
Company
Registered
Currency
Consolidated and Annual Financial Statements 2006
Nominal
capital
in 1,000
Equity
interest
in %
Method
Invest- of conment
solidation
Europe
Panalpina World Transport (Holding) Ltd. Basel CHF 50,000 K
Panalpina Management AG Basel CHF 2,500 100 1 K
Panalpina Finance Ltd. Jersey CHF 10,000 100 1 K
Panalpina AG Basel CHF 600 100 1 K
ASB Air Sea Broker AG Basel CHF 3,000 100 1 K
Pantainer AG Basel CHF 100 100 1 K
Panalpina Insurance Broker AG Basel CHF 100 100 1 K
Hausmann Transport AG Reinach CHF 100 100 1 K
Panalpina Air & Ocean AG Basel CHF 2,700 100 1 K
Jacky Maeder international forwarding Ltd. Basel CHF 2,000 100 1 K
Panalpina Welttransport (Deutschland) GmbH Mörfelden EUR 10,226 100 1 K
Panalpina Welttransport GmbH Düsseldorf EUR 154 100 1 K
Panalpina Welttransport GmbH Hamburg EUR 153 100 1 K
Panalpina Welttransport GmbH Kehl EUR 153 100 1 K
Panalpina Welttransport GmbH Mörfelden EUR 153 100 1 K
Panalpina Welttransport GmbH Nürnberg EUR 3,937 100 1 K
Panalpina Welttransport GmbH Stuttgart EUR 153 100 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 4,500 100 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
Grampian International Freight Ltd. Aberdeen GBP 97 100 1 K
Panalpina World Transport N.V. Antwerp EUR 3,750 100 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 100 100 1 K
Panalpina Slovakia S.R.O. Bratislava SKK 700 100 1 K
Panalpina Magyarorszag Kft. Budapest HUF 300 100 1 K
Panalpina Romania S.R.L. Oradea ROL 72 100 1 K
Panalpina Polska Sp. z. oo. Wroclaw PLN 50 100 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 2,100,176 100 1 K
Panalpina CIS Helsinki OY Vantaa EUR 8 100 1 K
Panalpina World Transport Ltd. Kiev USD 220 100 1 K
Luxair S.A. Luxembourg EUR 13,744 12 4 N
Panalpina Annual Report 2006 107

Consolidated and Annual Financial Statements 2006
108 Panalpina Annual Report 2006
Company
Registered
Currency
Nominal
capital
in 1,000
Equity
interest
in %
Method
Invest- of conment
solidation
North, Central and South America
Panalpina Inc. Jersey USD 4,000 100 1 K
Hensel, Bruckmann & Lorbacher, Inc. Farmingdale N.Y. USD 50 100 1 K
Panalpina Inc. Toronto CAD 100 100 1 K
Panalpina Transportes Mundiales, S.A. de C.V. Mexico City MXN 8,900 100 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
Panalpina Uruguay Transportes Mundiales S.A. Montevideo
Santa Fé de
UYU 4,500 100 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 VEB 180,000 100 1 K
Inversiones Ortac C.A. Caracas VEB 6,000 100 1 K
Panalpina Ecuador S.A. Quito ECS 20,000 100 1 K
Panalpina Aduanas S.A. Lima PEN 333 100 1 K
Panalpina Transportes Mundiales S.A. Lima PEN 1,460 100 1 K
Panalpina Ltda. São Paulo BRL 9,115 100 1 K
Panalpina Chile Transportes Mundiales Ltda. Santiago USD 102 100 1 K
Panalpina Transportes Mudiales S.A. Buenos Aires ARS 20 100 1 K
Panalpina Transportes Mundiales S.A. de C.V. Santo Domingo USD 1 100 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 9,500 100 1 K
Panalpina Asia-Pacific Services Ltd. Hong Kong HKD 500 100 1 K
Panalpina World Transport Ltd. Hong Kong HKD 100 100 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 40 2 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 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 1,667 100 1 K
Panindia Cargo Private Ltd., Dehli 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 2,500 100 1 K
Panalpina Kazakhstan LLP Almaty USD 1 100 1 K

Company
Registered
Currency
Consolidated and Annual Financial Statements 2006
Nominal
capital
in 1,000
Equity
interest
in %
Method
Invest- of conment
solidation
Africa and Middle East
Panalpina Gulf LLC Dubai AED 1,000 49 3 K
Panalpina Jebel Ali Ltd. Jebel Ali AED 100 100 1 K
Panalpina Worldtransport (Dubai) DWC-LLC Dubai AED 300 100 1 K
Panalpina (Bahrain) WLL Manama BHD 20 100 1 K
Panalpina Central Asia EC Manama USD 300 100 1 K
Panalpina Georgia LLC Tbilis USD 5 100 1 K
Panalpina Azerbaijan LLC Baku USD 1 100 1 K
Panalpina Turkmenistan LLC Turkmenbashi USD 60 100 1 K
Qatar Shipping Company (Panalpina Qatar) WLL Doha QAR 200 49 3 K
Panalpina Transports Mondiaux Cameroon S.A.R.L.
Panalpina Transportes Mundiales Guinea
Douala XAF 150,000 100 1 K
Equatorial Sarl. Malabo XAF 10,000 100 1 K
Panalpina Transports Mondiaux Algeria 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 World Transport (Nigeria) Ltd. Apapa NGN 100,000 69 2 K
Panalpina (Ghana) Ltd.
Panalpina Transportes Mundiais Navegaçao e
Accra GHC 100,000 100 1 K
Transitos, S.A.R.L. Luanda AON 18,000,000 92 1 K
K = fully consolidated
N = not consolidated
1 = capital participation 91–100%
2 = capital participation 50 – 90%
3 = controlling influence over management
4 = capital participation less than 50%
Panalpina Annual Report 2006 109

Consolidated and Annual Financial Statements 2006
110 Panalpina Annual Report 2006
Report of the Group Auditors
To the General Meeting of
Panalpina World Transport (Holding) Ltd., Basel
As auditors of the Group, we have audited the consolidated financial statements (income statement, balance sheet,
statement of recognized income and expenses, statement of changes in equity, statement of cash flows and notes / pages 70
to 109) of Panalpina World Transport (Holding) Ltd. for the year ended 31 December 2006.
These consolidated financial statements are the responsibility of the Board of Directors. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit. We confirm that we meet the legal requirements
concerning professional qualification and independence.
Our audit was conducted in accordance with Swiss Auditing Standards and with the International Standards on Auditing,
which require that an audit be planned and performed to obtain reasonable assurance about whether the consolidated
financial statements are free from material misstatement. We have examined on a test basis evidence supporting the
amounts and disclosures in the consolidated financial statements. We have also assessed the accounting principles used,
significant estimates made and the overall consolidated financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position, the results
of operations and the cash flows in accordance with the International Financial Reporting Standards (IFRS) and comply with
Swiss law.
We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers AG
Th. Brüderlin O. Zell
Auditor in charge
Basel, 14 March 2007

Key Figures in CHF
5-years review
Consolidated and Annual Financial Statements 2006
in million CHF 2006 2005 2004 2003 2002
Forwarding services 9,301 8,280 7,452 6,561 6,364
Change in % 12.33 11.10 13.58 3.10 (5.26)
Net forwarding revenue 7,735 6,949 6,120 5,362 5,175
Change in % 11.32 13.54 14.14 3.61 (3.92)
Gross profit (contribution margin) 1,591 1,408 1,327 1,239 1,248
Change in % 12.99 6.10 7.10 (0.72) (2.48)
in % of net revenue 20.57 20.26 21.68 23.11 24.12
Consolidated net earnings 183.5 120.3 100.0 97.7 115.6
Change in % 52.54 20.31 2.35 (15.48) 3.52
in % of gross profit 11.54 8.54 7.54 7.89 9.26
Ebitda 312.7 214.2 198.1 195.4 211.2
Change in % 45.99 8.11 1.38 (7.48) (5.68)
in % of gross profit 19.65 15.21 14.93 15.77 16.92
Ebita 277.9 177.9 160.5 152.6 164.5
Change in % 56.18 10.86 5.18 (7.23) (22.86)
in % of gross profit 17.47 12.64 12.09 12.32 13.18
Ebit 261.0 165.6 139.0 138.1 151.7
Change in % 57.58 19.16 0.65 (8.97) (2.64)
in % of gross profit 16.41 11.76 10.47 11.15 12.15
Cash flow before interest and taxes 321.3 216.4 198.4 194.9 220.4
Change in % 48.49 9.05 1.80 (11.57) 2.07
in % of gross profit 20.20 15.37 14.95 15.73 17.66
Net cash flow from operating activities 240.9 141.9 33.9 89.6 71.9
Change in % 69.83 318.48 (62.17) 24.62 (77.99)
in % of gross profit 15.15 10.08 2.55 7.23 5.76
Free cash flow 186.0 121.4 (77.7) 47.5 19.5
Change in % 53.24 (256.25) (263.58) 143.59 (90.06)
in % of gross profit 11.69 8.62 (5.86) 3.83 1.56
Net working capital 413.0 418.7 356.2 263.1 220.0
Change in % (1.37) 17.55 35.39 19.59 25.57
Capital expenditure on fixed assets 57.0 59.9 77.1 51.1 67.0
Change in % (4.86) (22.32) 50.88 (23.73) (47.26)
in % of gross profit 3.58 4.25 5.81 4.12 5.37
Net capital expenditure on fixed assets 54.0 33.2 61.6 39.7 48.6
Change in % 62.50 (46.08) 55.16 (18.31) (57.43)
in % of gross profit 3.39 2.36 4.64 3.20 3.90
Panalpina Annual Report 2006 111

Consolidated and Annual Financial Statements 2006
112 Panalpina Annual Report 2006
in million CHF 2006 2005 2004 2003 2002
Depreciation 51.7 48.5 59.1 57.4 59.5
Change in % 6.54 (17.94) 3.04 (3.53) (12.76)
in % of gross profit 3.25 3.44 4.45 4.63 4.77
Personnel expenses 886.9 843.7 782.4 734.8 725.9
Personnel
Number of employees at year-end (world) 14,304 13,583 13,224 12,344 14,463
Number of employees at year-end (Switzerland) 755 659 669 755 813
Yearly average (world) 13,342 13,031 12,784 12,404 12,253
Productivity ratios (CHF)
Net sales per average employee 579,766 533,241 478,723 432,280 422,346
Gross profit per average employee 119,235 108,050 103,802 99,887 101,853
Personnel expenses per average employee 66,471 64,747 61,202 59,236 59,243
Personnel cost in % of gross profit 55.75 59.92 58.34 59.30 58.17
Leverage (liabilities / equity) 1.17 1.13 0.97 1.01 1.10
Net interest bearing liabilities (372) (221) (231) (311) (282)
Gross gearing (interest bearing liabilities / equity) 0.03 0.02 0.02 0.03 0.03
Net gearing (net interest bearing liabilities / equity) (0.38) (0.26) (0.28) (0.41) (0.40)
ROCE (Ebit less tax / capital employed) in % 31.96 20.95 23.67 26.03 27.76
Current cash debt coverage ratio
(net operating cash flow / average current liability) 0.26 0.18 0.05 0.14 0.11
Cash debt coverage ratio
(net operating cash flow / average total liability) 0.23 0.16 0.04 0.12 0.10
Return on equity in % 20.2 14.6 13.8 17.3 18.3
Change in % 38.07 5.81 (20.21) (5.58) 4.00

Balance Sheet in CHF
5-years review
Consolidated and Annual Financial Statements 2006
in million CHF 2006 2005 2004 2003 2002
Assets 2,108 1,820 1,487 1,431 1,404
Change in % 15.85 22.39 3.89 1.93 2.86
Current assets 1,773 1,486 1,263 1,211 1,137
Change in % 19.08 4.25 6.50 7.82 (0.94)
Liquid funds 374 230 246 332 301
Change in % 62.40 (6.60) 10.38 20.46 51.52
Receivables and other current assets 1,399 1,255 1,017 879 837
Change in % 11.43 23.45 5.10 3.90 (10.56)
Fixed assets 336 334 311 275 292
Change in % 0.38 7.49 13.09 (5.82) 16.33
Tangible assets 162 152 159 154 167
Change in % 5.97 (4.12) (8.05) (12.80) (2.54)
Financial assets 72 73 61 68 66
Change in % (1.90) 19.74 3.67 (23.38) 1.18
Intangible assets 102 109 91 53 59
Change in % (5.91) 19.55 (10.42) (16.57) 294.44
Liabilities and shareholders’ equity 2,108 1,820 1,574 1,487 1,431
Change in % 15.85 15.62 3.89 1.93 2.86
Liabilities 1,131 962 774 747 748
Change in % 17.52 24.29 3.61 (0.13) (5.11)
Payables, accruals and deferred income 1,002 858 646 616 616
Change in % 16.77 32.79 4.87 0.00 7.94
Borrowings 27 20 37 32 36
Change in % 34.46 (44.75) (11.58) 29.86 (75.22)
Provisions 101 84 91 99 96
Change in % 21.03 (7.99) (8.08) (33.44) 2.13
Minorities 8 7 3 3 3
Equity 970 851 797 737 680
Change in % 13.96 6.76 8.49 3.27 17.08
Share capital 50 50 50 50 50
Change in % 0.00 0.00 0.00 0.00 0.00
Treasury shares (15) (20) 0 0 0
Change in % (24.89) 100.00 0.00 0.00 0.00
Translation differences (65) (57) (87) (67) (55)
Change in % 14.17 (34.17) 29.85 21.82 0.00
Retained earnings 1,000 878 834 754 685
Change in % 13.88 5.30 10.14 12.61 18.75
Panalpina Annual Report 2006 113

Consolidated and Annual Financial Statements 2006
114 Panalpina Annual Report 2006
Key Figures in EUR
5-years review
in million EUR 2006 2005 2004 2003 2002
Forwarding services 5,895 5,339 4,827 4,328 4,335
Change in % 10.42 10.60 11.54 (0.18) 26.43
Net forwarding revenue 4,903 4,480 3,964 3,537 3,525
Change in % 9.43 13.02 (1.79) 10.52 27.75
Gross profit (contribution margin) 1,008 908 860 817 850
Change in % 11.07 5.62 5.18 (3.87) 23.49
in % of net revenue 20.57 20.26 21.68 23.11 24.12
Consolidated net earnings 116.3 77.6 64.8 64.4 78.7
Change in % 49.94 19.75 0.52 (18.17) 26.47
in % of gross profit 11.54 8.54 7.54 7.89 7.80
Ebitda 198.2 138.1 128.3 128.9 143.9
Change in % 43.51 7.61 (0.44) (10.42) 22.35
in % of gross profit 19.65 15.21 14.93 15.77 15.57
Ebita 176.1 114.7 104.0 100.7 112.1
Change in % 53.53 10.35 3.29 (10.18) 22.35
in % of gross profit 17.47 12.64 12.09 12.32 199.57
Ebit 165.4 106.8 90.0 91.1 103.3
Change in % 54.90 18.61 (1.15) (11.85) 24.84
in % of gross profit 16.41 11.76 10.47 11.15 11.21
Cash flow before interest and taxes 203.6 139.5 128.5 128.6 150.1
Change in % 45.97 8.55 (0.03) (14.38) 61.45
in % of gross profit 20.20 15.37 14.95 15.73 15.79
Net cash flow from operating activities 152.7 91.5 22.0 59.1 49.0
Change in % 66.95 316.56 (62.84) 20.66 (25.17)
in % of gross profit 15.15 10.08 2.55 7.23 4.55
Free cash flow 117.9 78.3 (50.3) 31.3 13.3
Change in % 50.64 (255.54) (260.64) 135.86 (83.82)
in % of gross profit 11.69 8.62 3.84 3.83 0.93
Net working capital 256.9 269.0 230.9 168.8 151.3
Change in % (4.49) 16.50 36.81 11.55 44.92
Capital expenditure on fixed assets 35.4 38.5 50.0 32.8 46.1
Change in % (7.88) (23.01) 52.47 (28.86) (33.60)
in % of gross profit 3.52 4.24 5.81 4.01 4.87
Net capital expenditure on fixed assets 33.6 21.3 39.9 25.5 33.4
Change in % 57.35 (46.56) 56.80 (23.80) 12.53
in % of gross profit 3.33 2.35 4.65 3.12 4.23

Consolidated and Annual Financial Statements 2006
in million EUR 2006 2005 2004 2003 2002
Depreciations 32.7 31.3 38.3 37.9 40.5
Change in % 4.73 (18.31) 1.11 (6.59) 16.40
in % of gross profit 3.25 3.44 4.41 4.28 4.36
Personnel expenses 562.1 544.0 506.8 484.6 494.5
Personnel
Number of employees at year-end (World) 14,304 13,583 13,224 12,344 14,463
Number of employees at year-end (Switzerland) 755 659 669 927 869
Yearly average (World) 13,342 13,031 12,784 12,404 12,253
Productivity ratios
Net sales per average employee 367,461 343,816 310,092 325,433 298,097
Gross profit per average employee 75,572 69,667 67,947 71,308 68,882
Personnel expenses per average employee 42,130 41,747 39,073 39,071 61,997
Personnel Cost in % of gross profit 55.75 59.92 58.34 54.79 58.59
Leverage (liabilities / equity) 1.17 1.13 0.97 1.01 1.10
Net interest bearing liabilities (231) (142) (150) (199) (194)
Gross gearing (interest bearing liabilities / equity) 0.03 0.02 0.02 0.03 0.03
Net gearing (net interest bearing liabilities / equity) (0.38) (0.26) (0.28) (0.41) (0.40)
ROCE (Ebit less tax / capital employed) in % 31.96 20.95 23.67 26.03 27.76
Current cash debt coverage ratio
(net operating cash flow / average current liability) 0.26 0.18 0.05 0.14 0.11
Cash debt coverage ratio
(net opereating cash flow / average total liability) 0.23 0.16 0.04 0.12 0.10
Return on equity in % 20.2 14.6 13.8 17.3 18.3
Change in % 38.07 5.81 (20.21) (5.58) 4.00
Panalpina Annual Report 2006 115

Consolidated and Annual Financial Statements 2006
116 Panalpina Annual Report 2006
Balance Sheet in EUR
5-years review
in million EUR 2006 2005 2004 2003 2002
Assets 1,311 1,169 1,021 953 983
Change in % 12.17 14.56 7.09 (3.03) 1.86
Current assets 1,103 954 819 777 782
Change in % 15.54 16.54 5.45 (0.69) 7.82
Liquid funds 233 148 160 213 207
Change in % 57.26 (7.43) (24.91) 2.91 20.46
Receivables and other current assets 870 806 659 564 575
Change in % 7.89 22.35 16.91 (1.98) 3.90
Fixed assets 209 215 202 176 201
Change in % (2.80) 6.53 14.28 (12.15) (16.18)
Tangible assets 100 98 103 99 115
Change in % 2.61 (4.98) 4.33 (13.98) (12.80)
Financial assets 45 47 40 44 45
Change in % (5.01) 18.67 (9.35) (3.90) (23.38)
Intangible assets 64 70 59 34 41
Change in % (8.90) 18.48 73.51 (16.21) (16.57)
Liabilities and shareholders’ equity 1,311 1,169 1,021 953 983
Change in % 12.17 14.48 7.18 (3.08) 2.66
Liabilities 703 618 502 479 514
Change in % 13.79 23.18 4.71 (6.85) 0.75
Payables, accruals and deferred income 623 551 419 395 424
Change in % 13.07 31.61 5.98 (6.72) 7.95
Borrowings 17 13 24 21 25
Change in % 30.19 (45.24) 16.84 (17.09) 29.86
Provisions 63 54 59 64 66
Change in % 17.19 (8.81) (7.11) (3.81) (33.44)
Minorities 5 4 2 2 2
Equity 603 547 518 472 467
Change in % 10.35 5.60 9.72 1.10 4.87
Share capital 32 32 32 32 32
Change in % 0.00 0.00 0.00 0.00 0.00
Treasury shares (1.0) (13) 0 0 0
Change in % (26.17) 100.00 0.00 0.00 0.00
Translation differences (41) (37) (55) (44) (36)
Change in % 11.45 (33.46) 25.96 20.69 0.00
Retained earnings 622 564 541 484 471
Change in % 10.27 4.35 11.78 2.67 12.61

Financial Statements 2006
Panalpina World Transport (Holding) Ltd.
Annual Financial Statement
Panalpina Annual Report 2006 117

Annual Financial Statement
118 Panalpina Annual Report 2006

Income Statement
Annual Financial Statement
in thousand CHF 2006 2005
Income
Income from participations 150,698 141,500
Financial income 64,067 38,235
Rental income 350 350
Other income 2 0
Total income 215,117 180,085
Expenses
Personnel expenses 1,859 951
Other administrative expenses 6,118 4,696
Financial expenses 47,422 20,369
Depreciation and value adjustments 9,075 70,551
Total expenses 64,474 96,567
Taxes 1,257 1,326
Profit for the year 149,386 82,192
Panalpina Annual Report 2006 119

Annual Financial Statement
120 Panalpina Annual Report 2006
Balance Sheet
as of 31 December (before profit appropriation)
Assets
in thousand CHF 2006 2005
Current assets
Cash 227,366 80,638
Receivables:
– from Group companies 7,106 3,175
– from third parties 353 689
Financial receivables from Group companies 271,506 166,648
Prepaid expenses and deferred charges 4,458 8,231
Total current assets 510,789 259,381
Long-term assets
Buildings and real estate p.m. p.m.
Participations 97,701 97,801
Loans to Group companies 211,367 294,341
Own shares 15,022 20,000
Total long-term assets 324,090 412,142
Total assets 834,879 671,523

Liabilities and equity
Annual Financial Statement
in thousand CHF 2006 2005
Short-term liabilities
Cash pool Group companies 174,446 105,726
Payables:
– due to Group companies 486 232
– due to third parties 51 1,020
Financial liabilities to Group companies 41,841 33,913
Accrued expenses 5,157 6,917
Total short-term liabilities 221,981 147,808
Long-term liabilities
Provisions 29,713 39,916
Total long-term liabilities 29,713 39,916
Total liabilities 251,694 187,724
Equity
Share capital 50,000 50,000
General legal reserve 10,000 10,000
Reserve for own shares 15,022 20,000
Special reserve 312,828 307,850
Accumulated earnings:
– balance brought forward from previous year 45,949 13,757
– profit for the year 149,386 82,192
Total equity 583,185 483,799
Total liabilities and equity 834,879 671,523
Panalpina Annual Report 2006 121

Annual Financial Statement
122 Panalpina Annual Report 2006
Notes to the Financial Statements
General
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., which serve as a
supplement to the consolidated financial statements, were prepared in accordance with the accounting principles prescribed
by Swiss company law.
Valuation methods and translation of foreign currencies
Marketable securities are reported at the lower of cost or 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. 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.
Financial income
The increase in the reporting year is predominantly attributable to increased earnings from supplemental loans granted as
well as to higher bank interest payments and an improved foreign exchange result.
Financial expenses
The increase in financial expenses is predominantly the result of a strong increase in loss coverage paid to subsidiaries.
Depreciation and value adjustments
In the year under review, value adjustments totaling CHF 9.1 million were debited to the income statement. This refers to
depreciation on loans to subsidiaries and value adjustments to participations in subsidiaries.
Financial receivables from Group companies
Financial receivables increased by CHF 104.9 million compared with the previous year. This increase is mainly a result of a
debt restructuring from long-term loans to short-term loans.
Participations
The principal direct and indirect subsidiaries of Panalpina World Transport (Holding) Ltd. are shown on pages 107 to 109.
Loans to Group companies
Loans to Group companies decreased by CHF 83.0 million in the year under review. This decrease is primarily due to debt
restructuring.
Own shares
In the year under review, treasury share purchases totaled 102 810 shares (2005: 250,000 shares) with an average purchase
price per share of CHF 120.53 (2005: CHF 80.00) and treasury share sales totaled 175,027 shares with an average sale price
of CHF 99.24 (2005: no sales). These shares are held for serving the employee option plan.
Number of shares
31/12/2006
Movement
in year
31/12/2005
Movement
in year
31/12/2004
Total Panalpina World Transport (Holding) Ltd.
shares
Total Treasury shares held by Panalpina World
25,000,000 0 25,000,000 0 25,000,000
Transport (Holding) Ltd. 177,783 (72,217) 250,000 250,000 0

Provisions
These include provisions relating exclusively to foreign exchange risks.
Financial liabilities to Group companies
Compared to the previous year, financial liabilities to Group companies increased by CHF 7.9 million. This increase is mainly
due to additionally granted loans by subsidiaries.
Share capital
The fully paid-in share capital on 31 December 2006 amounts to CHF 50 million consisting of 25 million registered shares at
a par value of CHF 2.00 each.
Annual Financial Statement
in thousand CHF 2006 2005
Guarantees in favor of third parties
Guarantees and indemnity liabilities, Code of Obligations, article 663b
In addition, Panalpina World Transport (Holding) Ltd., Basel, has issued letters of comfort in
favor of various banks concerning liabilities due from subsidiaries amounting to CHF 16.9
million (previous year: CHF 29.2 million).
117,977 138,794
Fire insurance value of buildings and real estate 3,039 1,823
Shareholders
Ernst Göhner Stiftung, Zug
Portfolio investment (according to the share register, there are no shareholders with
42.60% 42.60%
holdings of more than 5%) 57.40% 57.40%
Panalpina Annual Report 2006 123

Annual Financial Statement
124 Panalpina Annual Report 2006
Appropriation of Available Earnings
The Board of Directors proposes the following appropriation of available earnings of total CHF 195,335,287 at the Annual
General Meeting:
in CHF 2006
Distribution of an ordinary dividend of CHF 3.00 gross per share * 75,000,000
To be carried forward 120,335,287
Total 195,335,287
* It is not planned to pay dividends on own shares held by the Group.

Report of the Statutory Auditors
To the General Meeting of
Panalpina World Transport (Holding) Ltd., Basel
Annual Financial Statement
As statutory auditors, we have audited the accounting records and the financial statements (income statement, balance
sheet and notes / pages 119 to 123) of Panalpina World Transport (Holding) Ltd. for the year ended 31 December 2006.
These financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion on
these financial statements based on our audit. We confirm that we meet the legal requirements concerning professional
qualification and independence.
Our audit was conducted in accordance with the Swiss Auditing Standards, which require that an audit be planned and
performed to obtain reasonable assurance about whether the financial statements are free from material misstatement.
We have examined on a test basis evidence supporting the amounts and disclosures in the financial statements. We have
also assessed the accounting principles used, significant estimates made and the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the accounting records and financial statements and the proposed appropriation of available earnings comply
with Swiss law and the Company’s articles of incorporation.
We recommend that the financial statements submitted to you be approved.
PricewaterhouseCoopers AG
Th. Brüderlin
Auditor in charge
O. Zell
Basel, 14 March 2007
Panalpina Annual Report 2006 125

126 Panalpina Annual Report 2006
Information for Investors
Share information
Share symbol PWTN
Reuters PWTN.S
Bloomberg PWTN SW
Trading exchange SWX
Key figures
in million CHF 2006 2005 change in %
Net forwarding revenue 7,735 6,949 12.3
Contribution margin (gross profit) 1,591 1,408 13.0
Ebitda 313 214 46.0
Ebit (operating result) 261 166 57.6
Net earnings 184 120 52.5
Cashflow from operating activities 241 142 69.8
Net capital expenditure 54 21 257.1
Balance sheet 2,108 1,831 15.1
Equity 970 851 14.0
Employees 14,304 13,583 5.3
Gross profit per employee (in CHF) 111,227 103,645 7.3
5­years development
(in million CHF)
Net forwarding revenue
7,500
6,250
5,000
3,750
2,500
1,250
0
2002 2003 2004 2005 2006
Contribution margin (gross profit)
1,600
1,500
1,400
1,300
1,200
1,100
1,000
Ebit
260
240
220
200
180
160
140
120
100
80
2002 2003 2004 2005 2006
2002 2003 2004 2005 2006
Fiscal year ends 31 December
Valoren 000216808
ISIN CH0002168083
Share register SIS Aktienregister AG, Olten, Switzerland
Net earnings
180
150
120
90
60
30
0
Shareholders’ equity
900
800
700
600
500
400
300
200
100
0
2002 2003 2004 2005 2006
2002 2003 2004 2005 2006

Ordinary gross dividend payments
Dividend year
Panalpina World Transport
SPI Swiss Performance IX
60%
40%
20%
–20%
1 Jan 1 Mar 1 May 1 Jul 1 Sep 1 Nov 1 Jan
0%
Financial calendar
Amount
(in million CHF)*
1 January to 31 December Business Year
15 March 2007 2006 full year results
10 May 2007 Q1 results
15 May 2007 Annual General Meeting
22 May 2007 Dividend distribution
9 August 2007 Q2 results
1 November 2007 Q3 results
13 March 2008 2007 full year results
6 May 2008 Annual General Meeting
Information for Investors
Per share
(in CHF)
2007 75 3.00
2006 50 2.00
2005 60** 2.40
2004 30 1.20
2003 30 1.20
2002 20 0.80
2001 10 0.40
* Based on 25,000,000 shares.
** Included a special one­time jubilee dividend of CHF 20 million declared at the ordinary Shareholders’ Meeting
of 20 May 2005.
Earnings per share in 2006
Number of shares 2006 2005 change in %
Basic EPS 24,743,622 CHF 7.34 CHF 4.71 55.8
Diluted EPS 24,764,704 CHF 7.33 CHF 4.69 56.3
Share price development
High in CHF 166.90
Low in CHF 94.30
Average trading volume 126,679
Share price development in comparison to SPI
1 January to 31 December 2006
Panalpina Annual Report 2006 12

128 Panalpina Annual Report 2006
Panalpina – Main Offices Worldwide
Algeria
Algiers, Hassi Messaoud
Angola
Cabinda, Lobito, Luanda, Soyo
Argentina
Buenos Aires, Ezeiza
Australia
Brisbane, Melbourne, Sydney
Austria
Graz, Hoechst, Innsbruck, Linz,
Salzburg, Vienna
Azerbaijan
Baku
Bahrain
Manama
Bangladesh
Chittagong, Dhaka
Belgium
Antwerp, Brussels, Liège
Brazil
Belo Horizonte, Campinas,
Curitiba, Guarulhos, Joinville,
Macaé, Manaus, Porto Alegre,
Rio de Janeiro, Santos, São
Paulo, Viracopos
Cameroon
Douala
Canada
Calgary, Edmonton, Fort Erie,
Kitchener, London, Montreal,
Ottawa, Quebec City, Richmond,
Toronto, Vancouver, Windsor,
Winnipeg
Chile
Iquique, Santiago, Valparaiso
China
Beijing, Chengdu, Dalian,
Dongguan, Fuzhou, Guangzhou,
Haikou, Hangzhou, Hong Kong,
Macau, Nanjing, Ningbo,
Qingdao, Shanghai, Shekou,
Shenyang, Shenzhen, Suzhou,
Tianjin, Urumqi, Weihai, Wuhan,
Wuxi, Xiamen, Xi’an, Zhongshan
Colombia
Barranquilla, Bogotá,
Buenaventura, Cali, Cartagena,
Medellín, Pereira
Congo
Pointe­Noire
Costa Rica
San José
Czech Republic
Brno, Prague
Denmark
Copenhagen
Dominican Republic
Santo Domingo
Ecuador
Guayaquil, Quito
Egypt
Cairo
El Salvador
San Salvador
Equatorial Guinea
Malabo
Finland
Helsinki
France
Lille, Lyon, Marseille, Nantes,
Paris, Strasbourg
Gabon
Libreville, Port Gentil
Georgia
Poti, Tbilisi
Germany
Bad Waldsee, Berlin, Bremen,
Cologne, Dortmund, Dresden,
Dusseldorf, Frankfurt, Hamburg,
Hanover, Kassel, Kehl, Leipzig,
Mannheim, Munich, Muenster /
Osnabrueck, Nuremberg,
Stuttgart
Ghana
Accra, Takoradi, Tema
Hungary
Budapest
India
Bangalore, Chennai, Cochin,
Coimbatore, Hyderabad,
Kolkata, Mumbai, New Delhi,
Pune, Tirupur
Indonesia
Jakarta, Semarang, Surabaya
Ireland
Dublin, Shannon
Italy
Bergamo, Biella, Bologna,
Brescia, Como, Florence,
Genoa, Milan, Reggio Emilia,
Rome, Turin, Varese, Vicenza
Japan
Nagoya, Osaka, Tokyo
Kazakhstan
Aksai, Aktobe, Almaty, Aqtau,
Atyrau
Korea
Busan, Daegu, Iksan, Incheon,
Seoul
Libya
Tripoli
Luxembourg
Luxembourg

Malaysia
Johor Bahru, Kuala Lumpur,
Penang
Mexico
Cancún, Guadalajara, México
City, Monterrey, Queretaro,
Villahermosa
Netherlands
Amsterdam, Eindhoven,
Maastricht, Moerdijk, Rotterdam
New Zealand
Auckland
Nigeria
Abuja, Apapa (Lagos), Ikeja,
Kaduna, Kano, Port Harcourt,
Warri
Norway
Oslo
Panama
Colón, Panamá
Peru
Callao, Lima
Philippines
Cebu, Manila
Poland
Gdynia, Warsaw, Wroclaw
Portugal
Lisbon, Porto
Puerto Rico
San Juan
Qatar
Doha
Romania
Oradea
Russia
Moscow, Nakhodka, Noyabrsk,
St. Petersburg, Usinsk, Yekaterinburg,
Yuzhno­Sakhalinsk
Saudi Arabia
Al Khobar, Jeddah, Riyadh
Serbia Montenegro
Belgrade
Singapore
Singapore
Slovakia
Bratislava
Slovenia
Koper
South Africa
Cape Town, Durban,
East London, Johannesburg,
Port Elizabeth, Richards Bay
Spain
Barcelona, Bilbao, Madrid,
Valencia
Sri Lanka
Colombo
Sweden
Gothenburg, Stockholm
Switzerland
Basel, Berne, Geneva, Lugano,
St. Gall, Zurich
Taiwan
Hsin­Chu, Kaohsiung,
Taichung, Taipei
Thailand
Bangkok
Turkey
Istanbul, Izmir
Turkmenistan
Ashgabat, Turkmenbashi
Ukraine
Borispol, Kiev
United Arab Emirates (UAE)
Dubai, Sharjah
United Kingdom (UK)
Aberdeen, Birmingham,
Glasgow, London, Manchester,
Prestwick
United States of America (USA)
Anchorage, Atlanta, Baltimore,
Boston, Bradley / Hartford,
Charleston, Charlotte, Chicago,
Cleveland, Dallas, Denver,
Detroit, El Paso, Greenville,
Houston, Huntsville, Laredo,
Los Angeles, Memphis, Miami,
Milwaukee, Minneapolis,
Montgomery, Nashville, New
Orleans, New York, Norfolk,
Otay Mesa, Philadelphia,
Phoenix, Portland, San Diego,
San Francisco, Seattle, Saint
Louis, Tulsa, Washington DC
Uruguay
Montevideo
Panalpina – Main Offices Worldwide
Venezuela
Caracas, Maiquetía / La Guaira,
Maracaibo, Puerto Cabello,
Puerto La Cruz, Puerto Ordaz,
San Antonio del Táchira,
Valencia
Vietnam
Hanoi, Ho Chi Minh City
Panalpina Annual Report 2006 12

1 0 Panalpina Annual Report 2006
Imprint
Panalpina World Transport
(Holding) Ltd.
Viaduktstrasse 42
P.O. Box
CH­4002 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 e­mail.
An electronic version can be downloaded
from: www.panalpina.com
Editor
Panalpina World Transport (Holding) Ltd.
Corporate Communications
Concept / Design
Wirz Corporate AG, Zurich
Lithography
Lithoteam, Allschwil / Basel
Printed by
NZZ Fretz AG, Schlieren
Consultant on sustainability chapter
sustainserv, Zurich and Boston

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
Panalpina Annual Report 2006