Panalpina Annual Report 2006

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