A Passion for Solutions

Annual Report 2004 

A Passion for Solutions

A Passion for 

Solutions 

The best brains for the most convincing 

ideas: That’s the motto which 

Panalpina’s 13,000 employees follow 

day in day out in seeking intelligent 

solutions to the highly demanding forwarding 

and logistics problems of 

their customers around the globe. And 

they do so with passion. 

As one of the world’s leading providers 

of forwarding and logistics services, this 

global Swiss-based group specializes 

in intercontinental air freight and ocean 

freight consignments and the associated 

supply chain management services. 

Thanks to its in-depth industry knowhow 

and state-of-the-art IT systems, 

Panalpina provides globally integrated 

door-to-door forwarding solutions tailored 

to its customers’ individual needs. 

The Panalpina Group operates a closeknit 

network with some 500 offices in 

80 countries. In a further 60 countries, 

it cooperates closely with partner companies. 

As a clearly focused corporation with 

a leading market position, Panalpina has 

specialized know-how in all the key 

industries. It thus offers its global key 

account customers true added value. 

At the same time, Panalpina is firmly 

embedded among internationally active 

small and medium-sized enterprises, 

and earns approximately three-quarters 

of its revenues in this segment. 

Thanks to a lean and efficient organization, 

a non-asset-based business 

model, competitive pricing and the wide 

experience of its management team, 

Panalpina is extremely well equipped 

for profitable future growth. 

Key Figures 

in CHF millions Change 

2004 2003 in % 

Invoiced Forwarding Services 7,452.3 6,560.9 13.6 

Customs, duty and taxes (1,331.9) (1,198.5) 11.1 

Net forwarding revenue 6,120.3 5,362.4 14.1 

Gross profit (contribution margin) 1,341.1 1,238.9 8.2 

in % of net forwarding revenue 21.9 23.1 

Operating result before 

depreciation and amortization 

(EBITDA) 212.0 195.4 8.5 

in % of gross profit 15.8 15.8 

Operating result before 

amortization (EBITA) 174.4 152.6 14.3 


Operating result (EBIT) 152.9 138.1 10.7 


Consolidated net earnings 111.4 97.7 14.0 

in % of shareholders’ equity 14.0 13.2 

Cash flow 212.2 194.9 8.9 


Net cash flow from operating 

activities 33.9 89.6 –62.1 


Total capital expenditure 89.9 51.1 76.1 

in % of net operating cash flow 264.9 57.0 

Net capital expenditure 74.5 39.7 87.5 

in % of net operating cash flow 219.3 44.3 

Depreciation and amortization 59.1 57.4 3.1 


Total balance sheet size 1,574.3 1,486.8 5.9 

Total Financial debts 36.6 32.2 13.9 

Shareholders’ equity 796.8 737.1 8.1 

Financial debts to equity in % 4.6 4.4 5.4 

Return on equity (ROE) in % 14.5 13.8 5.3 

Return on capital employed 

(ROCE) in % 23.7 26.0 –9.1 

Number of employees 13,224 12,344 7.1 

Gross profit per employee (CHF) 104,901 99,880 5.0

On 6 continents 

Some 500 offices in 80 countries, 

13,000 employees and a worldwide 

air- and ocean freight network. 

Group Management Structure 

as of May 2005 

Corporate Auditor Board of Directors 

Gerhard Fischer, Chairman 

Wilfried Rutz, Vice Chairman 

Heinz Kühnlein 

Roger Schmid 

Heinrich Walti 

CFO 

Roland Wider 

Corporate Financial 

Reporting & Tax Management 

Corporate Treasury 

Corporate Controlling & 

Corporate Credit Control 

President & CEO 

Bruno Sidler 

CIO 

Monika Ribar 

Management Information 

Systems 

Project Management 

Business Processes & Quality 

Corporate Information 

Technology 

Members of the Executive Board Corporate Functions 

Regional CEO, EMEA 

Jörg Eggenberger 

Europe / Middle East / 

Africa / Central Asia / CIS 

Air Freight 

Oil and Gas 

Panprojects 

Steering Committee 

Gerhard Fischer, Chairman 

Wilfried Rutz 

Roger Schmid 

Bruno Sidler 

Roland Wider 

Corporate Marketing & Sales 

Corporate Development 

Corporate Human Resources 

Corporate Secretary 

Corporate Legal Services Corporate Communications 

Regional CEO, LATAM 

Beat Simon 

Latin America 

Operations 

Regional CEO, NORAM 

Peter Merath 

USA / Canada 

Regional CEO, APAC 

Lars-Ola Gunnarsson 

Asia-Pacific 

Ocean Freight

Core Activities 

14 Ocean Freight 

In 2004 Panalpina increased its transport volume to 

824,200 TEUs. Strong growth rates were achieved mainly 

in the trade lanes from and to Asia and Latin America. 

Key Industries 

24 Hi-Tech 

20 Oil and Gas 

Panalpina as a global market 

leader serves the oil and 

gas industry everywhere in the 

world. The name Panalpina 

stands for high quality, safe and 

environmentally responsible 

logistics services with a clear 

customer focus. 

Hi-tech industries such as consumer electronics and 

telecommunications are among the big winners of 

globalization and rising living standards around the world. 

Panalpina helps Hi-tech companies to improve their 

supply chain and thus to be able to market their products 

even more successfully. 

28 Health Care 

Due to its traditionally strong 

customer base in this field, 

Panalpina focuses on the 

health care sector as one of 

its core industries. The 

worldwide health care market 

is expanding strongly 

and Panalpina keeps the 

cargo flow running between 

producers and consumers. 

12 Air Freight 

Panalpina increased its air 

freight transport volume again 

in 2004 and transported 

a total of over 750,000 tons. 

This was an increase of 

21% on 2003. A major driving 

force was the strong Asian 

export market, in particular 

China. 

16 Supply Chain Management 

In today’s global village, customers are increasingly 

demanding more than just transportation of their goods 

between A and B. Internationally active companies are 

relocating production to sites around the world, resulting 

in more and more complex supply chains. 

22 Automotive 

The international automotive industry is a truly globalized 

sector. Vehicles are no longer completely manufactured 

in one plant. Instead, components are sourced from around 

the world and shipped to a central location for the final 

assembly. Panalpina’s supply chain management skills and 

its international network are key elements that help to 

keep the production lines running. 

30 Industrial 

Projects 

26 Retail and 

Fashion 

Considering the importance 

of the retail and 

fashion business and its 

future potential, and 

following intensive discussions 

with customers, it 

was a logical step to put a 

strong focus on the retail 

and fashion markets. 

Providing transport services for big industrial projects 

requires special skills, high flexibility, total commitment and 

a true passion for solutions. All these requirements are 

provided by the 185 staff of Panprojects, the specialist project 

division of the Panalpina Group. 

Contents 

Key Figures 

Interview with 

the Chairman and the CEO 4 

Executive Board 8 


Air Freight 12 

Ocean Freight 14 

Supply Chain Management 16 


Oil and Gas 20 

Automotive 22 

Hi-Tech 24 

Retail and Fashion 26 

Health Care 28 

Industrial Projects 30 

Information Technology 32 

Human Resources 34 

Social Responsibility 36 

Financial Statements 2004 

Interview with the CFO 40 

Consolidated Financial 

Statements 2004 42 

Annual Financial 

Statements 2004 Panalpina 

World Transport (Holding) Ltd. 80 

Main offices worldwide 88 

Impressum 91 

Panalpina Annual Report 2004 3

4 Panalpina Annual Report 2004 

Interview with the Chairman Gerhard Fischer and the CEO Bruno Sidler 

Growth has outperformed the market 

average in every core area, 

with new business in all key industries 

Another successful business year, further organic growth and 

consistent implementation of the new strategic direction 

chosen in 2002 has put Panalpina in an ideal position to continue 

benefiting from the effects of globalization. 

How would you assess the past financial year? 

Gerhard Fischer 2004 has been a successful year, 

and we were able to achieve our main targets. 

Panalpina has grown in all regions against the background 

of a generally favourable economic climate. 

Of course, the main source of revenues has 

been major relocation of production activities to 

Asia with the consequent strong growth in freight 

“We will also extend our commitment to complex 

supply chain management services.” 

volumes. However, the fact that we have once again 

outperformed the market shows that we are not 

simply relying on the business cycle to drive growth. 

We have done our homework. For example, the 

reorganization of our global marketing and sales 

structures has borne fruit which we are now harvesting 

in the form of improved sales skills. I am 

also very pleased with the fact that 99% of our 

growth has been organic, i.e. has not entailed major 

acquisitions. The global forwarding sector continued 

to suffer the effects of the weak dollar last year. 

This influence is of course tangible in a sector 

such as ocean freight in which almost all transactions 

take place in dollars. Pressure on margins 

in our highly competitive environment is a further 

challenge. However, we have coped with this challenge 

successfully in 2004 thanks to a further 

increase in the efficiency of our services and rigorous 

lowering of our transaction costs. 

How strong was Panalpina’s growth in each 

sector? 

Bruno Sidler We are very pleased with the trend 

in our core activities. Our total tonnage in air 

freight rose by 21%, confirming our position as 

the world’s second largest provider of airfreight 

services. Sea container freight volume rose by 21%, 

and revenues in our third main area of activity, 

supply chain management, went up 

by 23%. We have gained new cus- 

tomers both in the SME segment, 

which accounts for around threequarters 

of our turnover, and among 

major global companies. We have 

acquired new customers or concluded 

more comprehensive contracts with existing 

customers in all key industries. In 2004 we have 

been awarded important new business by Intel, 

Nokia, Ericsson, Alcatel, Siemens and Samsung in 

the Hi-tech and telecommunications sector, expanding 

our leading position as a provider of services 

to global network suppliers and mobile telephone 

manufacturers. We have also concluded major 

new or additional contracts with Adidas, Escada, 

H & M and Otto Versand in the retail and fashion 

sector, with BMW, Porsche and Hyundai in the 

automotive industry, and with BP (Azerbaijan) and 

Agip KCO (Kazakhstan) in the oil and gas sector, 

where we have been the unchallenged market leader 

for many years.

Interview with the Chairman and the CEO 




Gerhard Fischer 

Chairman of the Board of Directors 

“This non-asset-based business model increases our 

flexibility, reduces risks and improves our liquidity.” 

What improvements in productivity were 

achieved in the year under review? 

Bruno Sidler Following the launch of our regional 

management structure in 2002 and preparations 

for the move to a functional organization in 2003, 

our central procurement, operational and sales & 

marketing organizations have been working in the 

new structure since January 1, 2004. With the rollout 

of the “target model project” the old forwarding 

structure is now firmly a thing of the past, and 

the performance of each business unit is measured 

consistently against its own targets. We are 

“We will continue to aim at sustained growth in 

revenues well above the market average.” 

very satisfied with the results so far. The introduction 

of the Shared Services Centres and further moves 

to standardize our IT applications in the year under 

review have also led to a rise in productivity per 

employee, which has had a direct impact on our 

operating result. 

What are your aims for the coming years? 

Gerhard Fischer We aim to achieve a continuous 

rise in revenues well above the market average. 

We will continue to benefit from globalization, a 

lasting phenomenon that will act as a general 

driver for growth, and from the fact that our sector 

is still highly fragmented. We will also gradually 

expand our range of services, responding to customers’ 

demands for added value above and 

beyond simply transporting objects from A to B. 

Will Panalpina’s strategy change? 

Gerhard Fischer The main elements of our tried and 

tested strategy – the clear focus on international 

air and ocean freight transport – will be maintained 

in future too. We will also extend our commitment 

to related supply chain management services. This 

is a deliberate choice and marks us out from our 

main rivals who offer integrated contract logistics 

and generally use their own infrastructure to store 

goods and distribute them by land for major customers. 

We see our role differently, preferring to act 

as a lead logistics provider, concentrating on the 

intelligent management of these logistics chains and 

providing the same solutions via selected best-inclass 

subcontractors and strategic partnerships in 

the various regions. This non-asset-based business 

model increases our flexibility, reduces risks 

and improves our liquidity. 

What role do acquisitions play in your growth? 

Bruno Sidler As we have already said, acquisitions 

accounted for a tiny proportion of our revenue 

growth in the year under review. However, the takeover 

of Grampian gave a considerable 

boost to our leading position in 

the oil and gas sector, and the integration 

of Korean IAF improves our 

position in Asia, as was the intention. 

The aim of these types of acquisitions 

is to continue to grow steadily, 

strengthening our position on geographical markets 

(particularly North America, Europe and Asia) 

or key industries by taking over leading local air 

and ocean freight forwarders. Buying up existing 

partners has proven to be a particularly attractive 

option, as the long-standing relationship and 

absence of network duplication in most cases 

makes integration much easier.

What will Panalpina get out of a stock 

market launch? 

Gerhard Fischer The planned IPO would give the 

company easier access to the capital markets 

and thus support its growth strategy. The group’s 

status and profile would also, of course, improve, 

thus helping us to market our services. Not least, 

going public would enhance the industrial competencies 

of our board committees, which can only 

be beneficial for the company. 

Our current shareholder will, in any case, retain a 

substantial stake in Panalpina over the long term. 

This is a direct consequence of the foundation 

bylaws, requiring an entrepreneurial asset management. 

This strategy is much welcomed by the 

company. 

Furthermore, we have never been afraid of comparisons 

with our direct competitors. This year the 

Board of Directors filed an application to the 

General Meeting that the ordinary dividend be increased 

by 10 million Swiss francs, bringing the 

total payout to 40 million francs and placing our 

distribution ratio on a par with that of our main 

rivals. 

What role does sustainability play in your plans? 

Bruno Sidler Sustainable growth for the benefit of 

shareholders and employees remains our top 

priority. The fact that in 2004 we created new jobs 

and at the same time increased gross profit per 

employee shows that we have been successful. 

We consolidated the already well established 

Panalpina brand last year by further efforts to improve 

the quality of our service and by the launch 

of our world-wide branding campaign. 

Bruno Sidler 


10 major factors for success 

Panalpina operates its own global network, manages 

capacity centrally and is represented on 

all the key markets with its own local organizations. 

The company is justifiably proud of its 

staff; they not only work for Panalpina but have 

assimilated its corporate culture and hence also 

its commitment to customer service. CEO Bruno 

Sidler sums up the Group’s strengths in the 

following 10 points: 

• A global network combined with a strong 

presence on local markets 

• High brand recognition 

• A healthy balance between major global 

customers and SMEs 

• A strong customer base in all key industries 

• Global market leader in the oil and gas 

industry’s supply chain 

• Central procurement and air and ocean freight 

capacity management 

• A non-asset-based business model 

• Process-integrated IT platforms 

• Passionate staff 

• A management team with long-term 

experience in the industry 



Bruno Sidler 


Born 1957. President of the 

Executive Board since 1998. 

Also directly responsible for 

Marketing & Sales, Corporate 

Development, Corporate 

Communications, Legal Services 

and Human Resources. 


Executive Board 

“We have met most of our targets, 

and the first successes yielded 

by the strategic and organizational 

group restructuring launched 

in 2002 are now clearly visible.” 

“Well trained IT specialists, an efficient control 

of data flows as well as secure systems enable 

us to solve complex problems.” 

Monika Ribar 

CIO 

“The revenue growth we have 

achieved, both among global 

accounts and small and mediumsized 

enterprises, clearly show 

that our investments in marketing 

and sales have paid off.” 

Roland Wider 

CFO 

Born 1959. Member of the Executive Board since 2000. 

Responsible for Corporate Information Technology, Management Information 

Systems, Project Management, Business Processes & Quality. 


Responsible for Corporate Finances, Investor Relations, Financial 

Reporting & Tax Management, Treasury, Controlling and Credit Control.

“Our decades of experience in 

central procurement and 

capacity management are 

generating good growth 

potential in a highly fragmented 

air freight market.” 

Beat Simon 

Regional CEO LATAM 

Born 1966. Member of the Executive 

Board since 2003. 

Regional responsibility: Latin America. 

Functional responsibility: Operations. 

Peter Merath 

Regional CEO NORAM 


Regional responsibility: USA and Canada. 

“By ‘Operational Excellence’ we 

not only mean ongoing improvements 

to our service quality, 

but consistent increases in our 

employees’ productivity and 

motivation.” 

Lars-Ola Gunnarsson 

Regional CEO APAC 


Regional responsibility: Asia-Pacific. 

Functional responsibility: Ocean Freight. 

Jörg Eggenberger 

Regional CEO EMEA 

Executive Board 

Born 1961. Member of the Executive Board 

since 2000. 

Regional responsibility: Europe, Middle East, 

CIS, Central Asia and Africa. Functional 

responsibility: Air Freight, Oil and Gas, 

Panprojects. 

“Motivated staff, solution-driven 

service concepts and impressive 

forwarding, logistics and industry 

competencies are a guarantee 

of satisfied customers in future 

too.” 

“The continuing development of our partnership 

with selected leading shipping lines 

guarantees top-quality service and forms the 

basis for double-digit growth in volumes.” 




5000 kilometres 

Placed end to end, the containers handled by Panalpina 

would form a line around 5000 km long. 

7500 Jumbo Jets 

The 750,000 tons of air freight flown by Panalpina 

would fit in 7500 B747 cargo planes.


• Air Freight 

• Ocean Freight 





Air Freight 

Network expansion to profit from 

strong market growth 

Panalpina increased its air freight transport volume again in 2004 

and transported a total of over 750,000 tons. This was an 

increase of 21% on 2003. A major driving force was the strong 

Asian export market, in particular China. 

Panalpina’s central procurement and capacity 

management system and its capability to provide 

capacity even during the peak season proved to 

be a success factor. This was particularly evident 

towards the end of the year, when the demand 

for capacity was especially high. Panalpina could 

offer customers additional space and increase 

frequencies, mainly out of Asia. 

The Asian export market to Europe is expected to 

continue its strong upwards trend in 2005. The 

transpacific routes also developed successfully. 

In response to customer demand, Panalpina has 

extended its services on Asia-North America routes. 

The twice-weekly B747-400F service between 

Hong Kong and the hub in Huntsville, USA, that 

was launched in 2004 was extremely successful. 

On the transatlantic the westbound/eastbound 

traffic balance between North America and Europe 

improved. 

Latin America showed 

good import growth, with 

a clear increase in shipments 

such as electronics 

and automotive parts 

to Brazil. Northbound 

volumes were also rising, 

and a further increase 

in Latin American exports 

in 2005 is expected. Africa developed strongly 

thanks to the oil and gas industry, and Panalpina 

offered more capacity by increasing cargo flights 

from five to seven per week. 

Unique Panalpina Multi Hub Strategy 

The central procurement and capacity management 

(CCM) concept has been further developed and 

will be gradually extended in 2005. The Panalpina 

Air Freight Division centrally handles capacity and 

procurement, organizes and coordinates the global 

air freight network and the traffic flows supported 

by a hub and sub-hub system. A best-in-class IT 

tool ensures transparency of the capacity and 

booking situation and the steering of the air freight 

networks in a multi hub environment. 

In Europe, Panalpina 

operates three equallyimportant 

air freight hubs: 

Luxembourg, Frankfurt 

and Paris. Panalpina’s 

strong presence in North 

America will be further 

extended when New York 

(JFK) will complement 

the existing hub-network consisting of Huntsville, 

Chicago, Miami and Los Angeles. Panalpina Air 

Freight, with 550 staff, also operates a road feeder 

service to and from the hubs and sub-hubs. 

Achieve the optimal capacity mix 

Panalpina Air Freight combines the capacity of 

selected commercial airline partners with the own 

scheduled freighter operations in order to achieve 

the optimal capacity mix. This is being balanced 

out during the low and high season to achieve 

best capacity utilization on a daily basis. 

The worldwide charter operations are controlled 

round the clock from the hubs in Luxembourg, 

Huntsville and Hong Kong which ensures immediate 

response to customer requests in the three 

time zones. It developed well in 2004 and – in average 

– Panalpina operates three charter flights 

every day. The charter market offers good growth 

potential, mainly for emergency shipments to big 

production plants and oil and gas exploring sites. 

New product portfolio 

As part of the product re-definition to offer customers 

clearly-defined, easy to understand services, 

Panalpina has drawn up new air freight product 

names. Priority offers a typical airport-airport transit 

time of 1–2 days for time-critical shipments 

using the fastest available connection. Standard, 

with a typical transit time of 3–4 days, provides 

cost-effective and rapid transportation. Economy 

offers transit times of 5–6 days. For vitally-urgent 

shipments, the “Now” service uses the fastest 

possible solution, including onboard couriers, charters 

or helicopter transfers. Customers can also 

select any combination of airport and door collection 

and delivery options.




14 Panalpina Annual Report 2004

Ocean Freight 

21% global growth and volume increase 

in all trade lanes 

In 2004 Panalpina increased its transport volume to 824,200 TEUs. 

Strong growth rates were achieved mainly in the trade lanes from and 

to Asia and Latin America. 

Panalpina outgrew the overall international 

ocean freight transport market last year. Total 

ocean freight volumes rose 21% to 824,200 TEU. 

The major drivers were the dynamic Asian export 

markets, especially China. Traffic with Asia (from 

and to Europe, North America, Latin America) grew 

to about 446,700 TEU. Considerable growth rates 

were also achieved in traffic from Latin America 

to North America and Europe and vice versa. 

Between Asia and North America the transport 

volume grew by 33%. Capacity out of Asia and 

Latin America was generally very tight, leading to 

higher westbound rates. 

The strong growth in the ocean freight market is 

expected to continue in 2005 and Panalpina is 

convinced it can achieve above-average growth 

rates again. Furthermore, Panalpina will further 

develop its intra-Asian and transpacific ocean freight 

volumes. 

Availability of capacity even in peak season 

Panalpina offers globally active and SME customers 

a choice of standardized products that 

provide reliable and efficient worldwide ocean 

freight transportation. Through its worldwide LCL 

(Less than Container Load) and NVOCC (Non 

Vessel Operating Common Carrier) products it 

offers seamless door-to-door services on the 

basis of long-term capacity and rate agreements 

with leading carriers. 

Having centralized 

capacity procurement 

and allocation within 

Panalpina Ocean Freight, 

the group can ensure 

capacity for its customers 

throughout the 

year on all trade lanes, 

even during the peak 

season. The consequent 

development of partnerships 

with selected 

leading shipping lines 

ensures highest service 

quality and contributes 

to further growth on all 

major routes. 

Standardized ocean freight products for all 

customers 

Panalpina offers clear 

“easy freight” solutions 

for all kinds of customer 

requirements. The full 

container load (FCL) 

product comprises complete 

schedule flexibility, 

a high frequency of 

sailings and available 

equipment. LCL, the competitively-priced consolidation 

product, provides reliable performance and 

cost-effective transportation. LCL shipments are 

handled through a dense network of strategicallylocated 

hubs in Europe, North America and Asia. 

A special focus in 2005 will be the extension of 

the network in Asia and further improved connections 

within North America. 

Service close to the customer 

Panalpina is committed to serving customers close 

to their location. New customer service teams 

have been successfully formed to handle order 

acceptance and to advise customers. Separate 

back-office staff will process orders and documentation. 

The combination of global contracts with 

carriers and local service for the customers enables 

Panalpina to respond quickly to changing customer 

requirements. At the same time, productivity 

can be increased. 

Security rules improve quality 

Panalpina has successfully implemented new security 

procedures – including setting up appropriate 

IT tools – following the introduction of international 

security rules for ocean freight shipments in July 

2004. In line with the obligatory standard operating 

procedures introduced by the International Maritime 

Organization, Panalpina is providing advance 

manifest information about its ocean freight shipments 

to the relevant authorities. 



Supply Chain Management 


Supply Chain 

Management 

180 football fields 

Panalpina manages a total of more than 1.1 million 

square metres of storage space at 240 locations 

around the world.

Supply Chain Management 

Adding value 

to the customer’s business 

In today’s global village, customers are increasingly demanding 

more than just transportation of their goods between A and B. 

Internationally active companies are relocating production to 

sites around the world, resulting in more and more complex 

supply chains. 

Parts, semi-finished goods and complete products 

have to be stored, packaged and at 

times assembled on their way between production 

sites or as they head for the point of sale. National, 

regional and local distribution centres are turning 

into logistics hubs. This is where Panalpina 

as a logistics expert comes into the picture. With 

decades of experience in international freight 

forwarding, Panalpina offers high-quality supply 

chain management solutions for customers 

around the world. 

Panalpina works to help 

its customers get their 

goods to the market 

in the most efficient and 

cost-effective manner. 

Panalpina delivers solutions 

to reduce inventory 

levels and overall supply 

chain costs. 

Successful supply chain management 

Panalpina has focused its logistics growth in recent 

years on global customers who require high-value 

supply chain management. While maintaining a 

strict asset-free strategy, Panalpina provides warehousing, 

distribution and value added services 

such as order management, repackaging, kitting 

and reverse logistics in cooperation with partners. 

A large number of warehouses at key locations 

around the globe are operated on behalf of clients 

from the automotive, Hi-tech and retail and fashion 

industries. Panalpina delivers added value to the 

customer, and its employees are driven by a consequent 

“can do” attitude and a real passion for 

solutions. Recent successes for Panalpina in the 

field of supply chain management include a lead 

logistics contract in Asia for a major Hi-tech company, 

and operation of a regional hub in Eastern 

Europe for a large customer. 

In response to customer demand, supply chain 

management has become the third pillar of 

Panalpina’s core business, alongside freight forwarding. 

Building on proven expertise for larger 

groups, the company is constantly extending its 

logistics services. Best-in-class partnerships with 

specialist companies in strategic sectors and 

regions ensure a comprehensive range of supply 

chain services. 

Lead logistics provider 

As a lead logistics provider, Panalpina works closely 

with the customer to analyse and improve the supply 

chain. Existing logistics processes are reviewed, 

including the materials flow and stock levels. It is 

important to understand the customer’s needs 

absolutely. Panalpina selects, manages and takes 

responsibility for the carriers and logistics suppliers 

within the supply chain. Furthermore, Panalpina 

helps to identify the ideal warehousing and distribution 

facilities as part of 

the overall supply chain. 

As an asset-free company, 

Panalpina has the 

freedom to work with 

best-in-class partners and 

thus provide customers 

with the best possible 

solutions. 

Proven IT systems manage the flow 

Integration of the physical flow of goods with the 

electronic flow of information is absolutely vital for 

successful supply chain management. The wellproven 

Panlogic Application Suite includes the 

web-based Pantrace tracking and tracing system 

and the Intrac system for tracking, report and 

logistics management, as well as first-class order 

and materials management applications. Moreover, 

an event management application alerts customers 

to any differences between planned and 

actual transportation. The Suite is being extended 

with a new Warehouse Inventory System (WIS) 

and a Supply Chain Visibility (SCV) tool which provides 

full end-to-end information, including external 

distribution centres. 





• Oil and Gas 

• Automotive 

• Hi-Tech 

• Retail and Fashion 

• Health Care 

• Industrial Projects 





Oil and Gas 

Fueling the world economy 

Panalpina as a global market leader serves the oil and gas 

industry everywhere in the world. The name Panalpina 

stands for high quality, safe and environmentally responsible 

logistics services with a clear customer focus. 

Panalpina’s customer base includes leading oil 

and gas producers, drilling companies, oilfield 

supply companies, construction firms and many 

others in the industry. With decades of experience 

in the oil and gas industry, Panalpina has the indepth 

specialist knowledge and a range of services 

precisely targeted to customers’ needs. It has 

a major presence in vital regions such as Europe, 

West Africa, North America, 

South East Asia, the 

Far East and Central 

Asia/CIS, and is expanding 

in emerging markets. 

The global Panalpina Oil 

and Gas division, with 

close to 1,000 dedicated 

employees enables the 

company to operate close to the customers and 

to respond quickly to new or changing needs. Producers 

and service providers continue to expand 

and open up new production locations, and, as a 

result, their requirements for top-class logistics 

services are also becoming more and more global. 

Successful acquisition 

The acquisition and successful integration of Scottish 

forwarding company Grampian International 

Freight was a major development for Panalpina’s 

oil and gas business in 2004. The acquisition extended 

its presence in the UK-based oil and gas 

sectors and also opened up new growth opportunities 

in Europe, West Africa, Central Asia and North 

Africa. Grampian, with 150 skilled staff and turnover 

of CHF 61 million in 2003, continues to operate 

under its existing company name and brand. 

Improved services 

In 2004, Panalpina Oil and Gas replaced the former 

MS Merlin by taking the newly-built MS Merlin III 

under charter and thereby further improved quality 

and service standards in West Africa. The Coast 

Link Service, comprising the two shallow draft 

vessels Merlin II and Merlin III together with the fast 

cargo boat African Star, transports cargo to offshore 

rigs and is directly linked to Panalpina’s air 

and ocean freight network. Unique is Panalpina’s 

combined air/ocean service via the hub in Malabo. 

All three vessels are operated commercially under 

charter to Panalpina. 

The new oil and gas hub at Moerdijk in the Netherlands 

enables Panalpina to offer European customers 

services such as international road transports, 

expediting, inbound transport, warehousing 

and customs clearance. Panalpina also increased 

its strategic presence in Tunisia, Mauritania, Libya 

and Algeria. 

Significant new contracts 

Panalpina successfully grew its oil and gas business 

with a number of significant new contracts. The 

promising activities in Angola developed very satisfactorily 

as several contracts were gained from 

leading world producers. 2005 is expected to see 

equally successful developments in the region. In 

Nigeria, Panalpina continued to extend its already 

very strong position with additional new business. 

The Central Asia region continued to grow with 

major new contracts and more Panalpina direct 

services from Europe were started up. The developments 

in Russia were also very positive as new 

business was gained in several regions, including 

Sakhalin Island. Following the strategy of being 

where the customers need the best service, 

Panalpina launched its activities on Sakhalin at a 

very early stage and has gained considerable 

experience in finding efficient solutions for complex 

challenges. Demand for quality logistics in Russia 

is increasing, and Panalpina also grew strongly in 

the Americas, particularly in Mexico, Venezuela 

and Brazil. In Houston a new hub with warehousing 

capacity was opened. The Asia business also 

continued to increase. 





Automotive 

Preferred partner for global players 

The international automotive industry is a truly globalized sector. 

Vehicles are no longer completely manufactured in one plant. 

Instead, components are rather sourced from around the world and 

shipped to a central location for the final assembly. Panalpina’s 

supply chain management skills and its international network are 

key elements that help to keep the production lines running. 

Not only are production methods changing, but 

markets are, too. Consumer demand fluctuates 

and purchasing power is growing in countries 

around the globe. In short, the automotive industry 

needs top logistics experts in order to design 

and market its products successfully. 

Panalpina has been at home in this complex and 

challenging market for many years and has established 

a customer base among manufacturers, 

tier-level suppliers, spare parts providers, and other 

sections of the industry. 

This means Panalpina 

really knows the market, 

and can react rapidly 

to new operating conditions. 

The services range 

from air and ocean 

freight forwarding to complex 

logistics solutions. 

Panalpina picks up, transports and delivers goods 

just-in-time, or just-in-sequence, to production 

lines in many countries. Thanks to centralized capacity 

management and procurement both for 

air and ocean freight, Panalpina is able to provide 

automotive customers with capacity whenever 

and wherever they need it. For example, Panalpina 

operates a regular freighter service between Sao 

Paulo and Luxembourg to give the Brazilian automotive 

industry sufficient capacity and better access 

to international markets. Furthermore, Panalpina 

provides customers with full supply chain visibility 

through its IT systems, and can pro-actively alert 

customers to any transportation changes that might 

affect their business. 

Industry competence and global coverage 

Panalpina is a preferred logistics partner for many 

automotive companies. It provides worldwide ocean 

freight transportation and air freight forwarding in 

several large regions for one of Germany’s leading 

car manufacturers, and also operates a logistics 

terminal for the company in Singapore. Panalpina 

acts as the “logistics management company” for 

air and ocean freight and some logistics activities 

for one of the world’s biggest automotive suppliers, 

a US-based group, on routes between North and 

South America, Europe and Asia. For another leading 

supplier with head office in Germany, for example, 

Panalpina is the “preferred global service 

provider” for air and ocean freight covering Germany, 

North America and parts of Asia. The total 

customer list, of course, is much longer. It could be 

continued, for example, with the business where 

Panalpina ships components for a major international 

automotive supplier from Asia, North America 

and Latin America to Europe. 

New contracts worldwide 

Panalpina successfully developed its position as a 

leading logistics provider for the global automotive 

industry in 2004. In the autumn, a major contract 

with a large Asian car manufacturer was signed to 

provide forwarding services for its new manufacturing 

base in the southern USA. This contract covers 

all air and ocean freight forwarding from both the 

USA and Asia. Components and other items are 

flown or shipped to the production site, stored in a 

nearby Panalpina-run warehouse and delivered 

on a just-in-time basis to the production line. Moreover, 

our contract to provide forwarding services 

between North America, Latin America and Europe 

for one of the world’s largest automotive suppliers 

was further extended. Panalpina also increased 

business with a large German manufacturer and a 

leading German automotive supplier. Hybrid cars 

are a highly-promising future market. 

Automotive competence centre 

Panalpina will further develop its already very successful 

competence centre for the automotive 

industry during 2005. A network of industry experts 

based at six strategic centres in North America, 

Europe and Asia-Pacific is being established. These 

experts are important contacts and information 

sources for key account managers and sales representatives. 

The competence centre team is also 

responsible for monitoring and analysing trends in 

the industry, pooling expertise and creating industry 

solutions for existing and potential customers.





Hi-Tech 

Ringing up successes in 

the Hi-tech sector 

Hi-tech industries such as consumer electronics and telecommunications 

are among the big winners of globalization and 

rising living standards around the world. Panalpina helps Hi-tech 

companies to improve their supply chain and thus to be able 

to market their products even more successfully. 

Demand for telecommunication networks and 

for products such as computers and accessories, 

mobile phones and other electronic devices 

is growing worldwide. At the same time, manufacturers 

are changing their sourcing operations to 

regions such as Asia. These decisive trends have 

a major impact on the flow of parts and finished 

goods. 

Hi-tech competence centre 

Panalpina not only profits from these developments 

but is a key element within the supply chains. 

Like with all other key industries, Panalpina also 

operales a dedicated Hi-Tech Competence Centre. 

It supports the key account managers for global 

customers and is responsible for drawing up industry 

solutions for the Hi-tech sector based on 

market and customer requirements. 

A highly successful 

example of a partnership 

between Panalpina and 

global Hi-tech company 

is the case of the Korean 

Panalpina organization. 

It transports PCs, mobile 

phones, home electronics 

equipment, domestic 

appliances and other consumer items for the 

manufacturer from Seoul to various European destinations. 

A dedicated Panalpina team has direct 

electronic links to the customer to organize transport, 

track shipments and plan future orders. 

New electronics and telecoms business 

In 2004, Panalpina gained significant additional 

business from existing customers in the computer 

industry. This included more traffic out of Europe, 

as well as new trans-Pacific and transatlantic volumes. 

A major project in 2004 was to provide forwarding 

services to Nigeria for communications 

technology from a long-standing German customer. 

This industrial group is one of several suppliers 

of new fixed-line and mobile phone networks in 

Africa’s most populous country. Panalpina set 

up a special department in Europe for equipment 

deliveries to Nigeria, and forwarded more than 

8,000 tonnes of air freight as well as ocean freight 

as part of the project. 

In early 2005, Panalpina rang up a major success 

in the telecommunications industry. One of the 

world’s leading mobile phone companies appointed 

the company as a Lead Logistics Provider and 

awarded significant traffic on trade lanes from Asia 

to Europe and North America, and from Brazil to 

North America. The telecoms sector offers highlyattractive 

growth prospects in many regions of the 

world. 

Top security for valuable cargo 

Panalpina is committed to the very highest levels 

of security for freight shipments, whether Hi-tech 

goods or other types of cargo. Security heads 

and coordinators at global, regional and local levels 

ensure that all staff are thoroughly screened 

and trained in-depth on the security standards and 

awareness program. Where appropriate, special 

security facilities for vulnerable goods are available. 

Panalpina also monitors the security standards 

of its subcontractors. Needless to say, Panalpina 

also operates according to the operating standards 

of the Hi-tech manufacturers organization 

TAPA (Technology Asset Protection Association) 

and has been certified by the US program C-TPAT 

(Customs-Trade Partnership Against Terrorism). 

The involvement in industry initiatives is also part 

of Panalpina’s commitment to improving security. 





Retail and Fashion 

Tailor-made services 

for international retailers 

Considering the importance of the retail and fashion business, 

its future potential and following intensive discussions with 

customers, it was a logical step to put a strong focus on the 

retail and fashion markets. 

Key sectors with growth potential include textiles, 

quality and casual clothing, footwear, 

fashion jewelry and accessories. An industry competence 

centre has been set up in Zurich to provide 

overall strategic direction and support for key 

account managers. 

Panalpina already has a large retail and fashion customer 

base in many countries around the world. 

In particular, international air and ocean forwarding 

services for large European retailers and fashion 

manufacturers have been provided for many years. 

These customers include leading brands. One of 

the world’s leading sports footwear companies, for 

example, has entrusted Panalpina with significant 

volumes of boxed freight from Asia to parts of 

Europe. Some of the European customers export 

significant volumes to Asia, enabling Panalpina 

to balance traffic flows between the two continents. 

In spring 2004, for example, one of Italy’s most 

prestigious fashion companies relied on Panalpina’s 

logistics expertise for the opening of its new flagship 

store in Shanghai as well as for a special show 

in Hong Kong. The high-value haute couture items 

were successfully delivered just-in-time to the two 

events. 

Value added services 

The services for the retail and fashion industries 

range from traditional air and ocean freight 

forwarding to logistics and value added services. 

Dedicated sales and operational teams are fully 

focused on customer needs. Due to the global importance 

of Asia as a textiles manufacturing 

base, Panalpina is able to consolidate shipments 

at a “buyers’ platform” and ship items from 

this hub to Europe or other continents. Included in 

the service package are time-definite transport 

solutions and distribution services. Furthermore, 

Panalpina provides seasonal storage capacity – 

a particularly important service for these highly 

seasonal industries. 

Panalpina also provides a range of value added 

services for customers in the retail and fashion 

sectors. For example, Panalpina offers “flying 

boutiques” in the form of transport equipment for 

hanging garments for smaller fashion companies 

without their own specialized containers. Once in 

Europe, the clothing items are unpacked and 

made ready for the market, for example by fitting 

labels or buttons. Other pre-retailing services 

include shipment control, re-conditioning and dispatching. 

Furthermore, vendor and order management, 

cross-docking, and door-to-store delivery 

are offered. Special services include store 

opening or trade show logistics, as well as reverse 

logistics. This is all backed up by tracking and 

tracing, and detailed reporting. 

Fit for the future 

Panalpina is technologically-equipped for current 

security requirements and future needs. The 

group has TAPA and C-TPAT certification, as well 

as GPS-controlled, hard-covered trucks in major 

locations. A RFID technique project to assess the 

performance and operational aspects of the new 

tags is being developed. In addition, Panalpina is 

closely monitoring the effects of the end of quotas 

on Chinese textile exports. A major shift in textile 

manufacturing from traditional locations around the 

world to China has been widely predicted. 

Panalpina is already well-prepared for this development 

thanks to its strong presence in the 

country.





Health Care 

Keeping the logistics chains healthy 

Due to its traditionally strong customer base in this field, 

Panalpina focuses on the health care sector as one of its core 

industries. The worldwide health care market is expanding 

strongly and Panalpina keeps the cargo flow running between 

producers and consumers. 

Leading pharmaceutical and biotechnology companies 

are extending their production and 

sales markets around the world. Further potential 

in this strategic key industry comes from the fast 

growing market of “generic” drugs, often produced 

in regions such as Eastern Europe, India or 

Latin America. 

For their worldwide logistics, 

major producers 

of health care products 

require experts who 

know just how to handle 

the sensitive and expensive 

products. Vaccines, 

medicines and other 

items frequently have to 

be transported at exact temperatures, need extracareful 

physical handling and also require special 

safety measures. At the same time, however, such 

shipments are often vitally urgent. They may have 

to be airfreighted as quickly as possible to large 

cities or even to minor destinations less accessible. 

Even if they are not particularly urgent, health 

care products are often shipped by air due to their 

sensitive nature and high value. 

Expansion in Asia 

Panalpina has been an expert in the field of health 

care logistics for many years. It has acted as the 

main logistics provider of a globally leading Swissbased 

producer for a long time, and has had a 

broad customer base among pharmaceutical companies 

in countries around the world. Panalpina 

has – as in the other key industry groups – established 

a health care competence centre in Zurich. 

Panalpina’s main areas of activity are in Europe, 

the USA and Asia. Further growth will be generated 

mainly in Asia. Panalpina therefore is constantly 

extending its logistics capabilities for inbound and 

intra-Asian transportation as well as for distribution 

to retailers. 

Keeping things cool 

Panalpina’s competitive advantages in the health 

care sector include the tight, self-controlled network, 

the availability of capacity at all times and 

the specialist equipment that is used. Goods such 

as vaccines have to be transported at constant 

temperatures. Panalpina uses specially-designed 

Envirotainers for this purpose. These temperaturecontrolled 

“cool boxes” are equipped with thermostats 

and dry ice so that the temperature can 

always be kept at just the right level between –20 

and +20 degrees Celsius. The vaccines are loaded 

into these containers at the customer’s premises 

and transported to the consignee without any interruption 

in the cool chain. 

Another innovative service that Panalpina provides 

for health care customers is its “e-hub” for electronic 

data transmission. Customers can transmit 

their orders electronically into the e-hub and receive 

order confirmation. Panalpina staff use the data 

to organize transportation, documentation and 

billing. The e-hub is linked to Panalpina’s tracking 

and reporting system. 





Industrial Projects 

“Can’t do” doesn’t exist 

Providing transport services for big industrial projects requires 

special skills, high flexibility, total commitment and a true 

passion for solutions. All these requirements are provided by the 

185 staff of Panprojects, the specialist project division of the 

Panalpina Group. 

Due to the special needs of project work, the 

existing Panalpina project department is operated 

as a separate business unit with its head 

office in Bremen (Germany). It is based on a proven 

track record and the competence of the Panalpina 

project division. It uses the global Panalpina 

organization as its support base during project 

execution. 

Panprojects provides 

integrated logistics 

turnkey project forwarding 

and management 

services on a global scale 

to engineering procurement 

and construction 

companies. In addition, 

Panprojects specializes 

in serving the mining industry on mining emplacements 

and extensions where the end user or the 

final client is part of the mining industry or a supplier 

to it. For the power & energy sector, Panprojects 

provides tailor-made transport solutions 

for the supply of large generating plants, turbines, 

hydro-power plants and wind parks. Moreover, 

these services are offered to miscellaneous manufacturers 

and suppliers of other industrial plants, 

heavy and over-dimensional equipment and modules. 

This includes a large range of clients such 

as manufacturers of railway rolling stock, construction 

companies, steel and paper mills. 

Strong energy sector 

Driven by the increasing demand for oil and gas in 

2004, Panprojects continued to benefit from the 

global investment in new projects by the oil and gas 

and petrochemical industries. The main focus was 

on several large projects in sectors such as liquid 

natural gas, petrochemicals, refinery and oil field 

development in the Middle East (Qatar, Iran, Oman, 

Saudi Arabia), China, Australia, Central Asia (Azerbaijan, 

Kazakhstan), Indonesia, Equatorial Guinea, 

Nigeria, Mexico and on Russia’s Sakhalin Island. 

On Sakhalin, Panalpina plays a pioneering role, 

being one of the first companies to offer its services 

and operate its own organization. 

Rising commodity prices have fueled a global boom 

in mining site developments, prompting Panprojects 

to develop tailor-made logistics products for the 

mining industry. Some major greenfield mining 

and expansion projects were won during the year 

in South and Central America (Chile, Venezuela, 

Guatemala, Mexico, Peru), Burkina Faso, Russia 

and Turkey. 

For the power and energy industry, Panalpina supplied 

logistics services to major projects in Canada, 

Mexico, Chile, China, the Dominican Republic, 

USA, Russia, Saudi Arabia, Romania, Turkmenistan 

and Tanzania. 

The global tonnage handled by Panprojects in 

2004 increased considerably compared to previous 

years, enabling the development of strategic 

partnerships with major break bulk ocean carriers. 

A large number of project-related air and ocean 

freight charter fixtures has further strengthened 

Panprojects’ position as a major freight purchaser 

and broadened our in-house expertise.



Information Technology 


Information 

Technology

Information Technology 

Managing the information flows 

The smooth transportation of goods requires efficient information 

flows. Operational excellence is ensured by secure systems, 

powerful software, reliable hardware and high data quality. Together, 

these make a significant contribution to high productivity, efficient 

use of resources and customer satisfaction. 

In 2004, Panalpina focused on three key aspects 

of information technology: continued standardization 

of hardware and software, the outsourcing of 

certain programming stages and the consolidation 

of the Data Center. All of this had one objective: 

even better use of electronic tools by staff, and thus 

increased productivity, improved customer service 

and, not least, lower costs. In the consolidation of 

the Data Center the aim 

was to reduce the number 

of server locations 

and, thus, the number of 

interfaces. This also 

enables the IT specialists’ 

knowledge to be 

more focused and better 

utilized. At the local 

offices, on the other hand, it is vital to give staff 

proper on-site software training so that they can 

put their electronic tools to optimal and efficient 

use. 

Generally, Panalpina is pursuing a similar strategy 

in the IT area as in its core operation: Only the 

best is good enough. This is why Panalpina works 

together with partners, selected according to 

the “best-in-class” policy, who put their respective 

core competences to service for Panalpina. 

Panalpina does not move the goods physically, but 

organizes and monitors the entire goods chain; 

and IT is not Panalpina’s core business but rather 

a production factor of international shipping 

for which it manages information media and data 

streams. For this reason, the company is increasingly 

outsourcing programming and development 

tasks to subcontractors, including one partner in 

India. Panalpina’s primary aim in this is not to save 

on staffing costs, but rather to better employ the 

competences of its own experts. Panalpina’s own 

IT specialists initiate, control and coordinate all 

activities carried out by the partners under 

Panalpina’s management. This means that content 

management, decision competencies and 

control of data streams, data preparation and data 

quality are performed in-house. 

Consistent separation of in-house and outsourced 

activities resulted in the analysis and optimization 

of all internal processes. Solutions to complex problems 

require specialist knowledge that cannot be 

provided by the conventional “Jack-of-all-trades”. 

This is why Panalpina’s IT division has clear structures 

with well-defined responsibilities and 

processes which enable it to offer the company 

powerful and cost-efficient solutions. 

Continuous standardization of the IT tools and 

processes is one of the strategic objectives. As a 

global company, Panalpina applies global standards 

wherever possible – the financial area being 

an example. Furthermore, new systems specially 

developed for our own requirements are being 

employed globally. This means that the entire 

Panalpina organization is using the same systems, 

which can be supported 

globally by our own 

people. Panalpina rules 

out “stand-alone” solutions 

so that it can offer 

its customers creative 

solutions that meet their 

own individual requirements. 


Human Resources 

Human 

Resources 


Human Resources 

Panalpina’s assets are its staff 

As the industry saying goes, “Logistics is a people business”. 

Nowhere is this truer than at Panalpina, with its 13,000 employees 

around the world. 

The company’s strategy is not to invest in fixed 

assets such as trucks, planes or ships but to 

be a lean and flexible global supplier of logistics 

services, contracting the capacity required by customers 

from a variety of transport carriers. In other 

words, Panalpina’s assets are its staff. For at 

Panalpina, “A Passion for Solutions” is not a mere 

slogan but the job commitment of all employees. 

It’s they who make the difference! 

The company’s success in the highly competitive 

freight transport and logistics markets is not only 

determined by its global strategy, range of products 

and services, IT systems and other “hard” factors. 

With the strategic focus on operational excellence 

and profitable growth, well-qualified, trained and 

experienced staff who are motivated to do the best 

job at all times are absolutely essential. Their relationships 

with customers, their ability to react 

fast with optimal solutions to changing operational 

circumstances and other “soft” factors are major 

drivers for the company’s successful development. 

As a leading global company in the growing logistics 

industry, Panalpina is an attractive employer. 

The company offers a dynamic environment and 

worldwide job opportunities with its 500 offices in 

80 countries. Responsible for overall personnel 

issues, implementation of corporate HR guidelines 

and various global training programs is the corporate 

Human Resources department in Basel. The 

head office team is supported by human resources 

managers at regional and area levels who are 

responsible for recruitment, training at a local level 

and everyday personnel tasks. 

Global guidelines for a global business 

Panalpina continued to successfully implement its 

global guidelines in its regions and local areas 

around the world in 2004, and will maintain this path 

in 2005. These guidelines set uniform standards for 

personnel-related procedures and issues. The aim 

is to ensure that all parts of the company are working 

to the same set of basic rules. Regional and 

area managers can, however, vary these rules where 

local circumstances require. The key objective is 

to ensure that the company’s corporate values are 

spread throughout the entire worldwide network. 

These are based on the company’s positive, “cando” 

mentality and its entrepreneurial approach. 

In addition, a new IT tool will be rolled out during 

2005 to further improve personnel-related data 

collection and monitoring of productivity and other 

key indicators. 

Training tomorrow’s managers 

With its “Panacademy” learning platform, Panalpina 

has developed a range of targeted courses for 

in-house staff training. The global training program 

covers all aspects of the company’s activities, 

including operations, sales and marketing, and is 

designed to offer staff at all levels the opportunity 

for further professional development. Employees 

are selected for the Management Development 

Program on the basis of their annual performance 

assessment and review. 

The first stage of the management development 

program “Steering Success” trains some 400 employees 

a year in basic management skills such 

as manager roles, personnel management and communications. 

In 2004, Panalpina launched a new, 

two-year training program “Navigating Our Future”. 

Some 80 talented managers were selected to 

participate in a series of seminars on issues such 

as business strategy, processes and more complex 

management skills. This program is designed 

to groom participants for rapid promotion to 

higher-ranking jobs. For about 40 top managers, 

Panalpina runs a flexible Executive Program 

comprised of short, intensive modules focusing on 

specific issues. 

Furthermore, training courses on general topics 

take place regularly at a regional or area level. 


Social Responsibility 


Social Responsibility

Social Responsibility 

Shouldering responsibility 

Panalpina is part of a global economic and social system. 

Its actions are guided not only by economic principles, 

but also to a significant extent by social and ecological convictions. 

In supporting the various groups with which it 

has contact, the company thus engages in a wide variety of 

activities – globally. 

Panalpina and its entire staff were horrified at 

the devastation wrought by the tsunami flood 

disaster in Southeast Asia at the end of December 

2004 and the immeasurable suffering in its aftermath. 

The shock was all the greater given the company’s 

manifold personal and business relations 

in the affected countries. Hence Panalpina initiated 

a spontaneous group-wide donation appeal and 

used the donations to support a sustainable project 

aimed at helping the flood victims to help 

themselves. Before the disaster struck, more than 

100,000 people living in the northern part of the 

Indonesian island of Sumatra earned their living in 

the fishing industry. Mainly small boats were used 

to fish the coastal waters. The tsunami destroyed 

or damaged a large part of the fleet together with 

the port and processing plant infrastructure. Moreover, 

the fish stocks moved to the open sea, i.e. 

to areas where fishing with the conventional boats 

is impossible. Panalpina therefore backed a project 

to help these fishermen regain the means to earn 

a living. The scheme is overseen by a local aid 

organization sponsored by the Indonesian government. 

It involves the construction of modern 

fishing boats that will allow deep-water fishing. 

The fishermen are also being trained in the use 

of modern technology. Panalpina has financed a 

modern ship, named the Panalpina Passion, 

that will provide some 10 families with their daily 

income. 

Right to Sight 

Sustainable local aid is also at the heart of the 

“Right to Sight” initiative. In this project, Panalpina 

supports a Swiss Red Cross (SRC) campaign 

against poverty-induced blindness in Ghana by 

providing additional funding for an eye health 

program. Working in tandem with the national 

authorities and Ghanaian Red Cross, the SRC has 

set up regional eye clinics with the capacity to 

treat 80,000 patients a year. Panalpina is fully 

committed to the scheme, 

which brings concrete, 

on-the-spot relief to 

those afflicted. Having 

operated in the region 

over many years, the 

company naturally takes 

its social responsibilities 

very seriously. 

ISO 14001 

As a logistics company, Panalpina is in favor of 

environmentally efficient forwarding solutions and 

handling methods. All the more gratifying, then, 

was the news that Panalpina Sweden had been 

honored with the Environmental Award 2004 by its 

client Tetra Laval. This accolade was bestowed by 

the Swedish company in recognition of Panalpina’s 

commitment to environmental protection. 


Consolidated Financial Statements 2004 


Consolidated and Annual Financial 

Statements 2004 


Contents 

Consolidated Financial 

Statements 2004 

Interview with the CFO 40 

Consolidated 

Income Statement 42 

Consolidated Balance Sheet 43 

Consolidated Statement 

of Recognized Income and 

Expenses 44 

Consolidated Cash Flow 

Statement 45 

Notes to the Consolidated 

Financial Statements 46 

Principal Group companies 

and participations 70 

Report of the Group Auditors 73 

Key Figures 

5-year review in CHF 74 

Balance Sheet 

5-year review in CHF 76 

Key Figures 

3-year review in EUR 77 

Balance Sheet 

3-year review in EUR 79 

Annual Financial Statements 2004 

Panalpina World Transport 

(Holding) Ltd. 

Income Statement 81 

Balance Sheet 

as of December 31 

(before appropriation of profit) 82 

Notes 84 

Appropriation of Profits 86 

Report of the 

Statutory Auditors 87 



Forwarding revenue 

in CHF millions 

8,000 

7,000 

6,000 

5,000 

Gross profit 

in CHF millions 

1,600 

1,200 

800 

400 

1999 

2000 

2001 

2002 

2003 

2004 

1999 

2000 

2001 

2002 

2003 

2004 


Interview with the CFO Roland Wider 

A milestone in the implementation 

of our strategy 

Panalpina has achieved most of its objectives and the growth 

strategy is clearly starting to pay off. Revenues increased 

by 13.6% whereas the operating result rose by 14.3%. With 

this, Panalpina has far outgrown the market. 

What is your assessment of business 

performance in 2004? 

For Panalpina, 2004 was a crucial year, a veritable 

milestone in the implementation of our strategy. 

2002 and 2003 saw us embark on the program of 

restructuring needed to gear up the Group to the 

new strategy. Even though this process still has some 

way to run, we have achieved most of our objectives 

and the growth strategy is clearly starting to 

pay off. With revenues up 13.6% – or even 16.3 % 

in local currency – our performance is well above 

par for the market. 

Given the continuing pressure on margins, which 

triggered a further slide in gross profit margins, 

the rise in gross profits was limited to 8.2%. The 

operating result (EBITA), by contrast, rose by a 

respectable 14.3%. All in all, we are satisfied with 

2004. Our approach has proven sound and we 

are on course for sustainable and profitable growth. 

What share of revenue growth is attributable 

to the acquisitions? 

Last year’s takeover of Scottish company Grampian 

and the integration of the business activities of 

IAF, our long-standing agent in Korea, accounted 

for less than 1% of our increase in revenues. 

Hence, the growth achieved was almost exclusively 

organic driven. In future, however, we 

shall increasingly look for bolt-on acquisitions as 

a means of fostering organic growth. 

Which targets have not yet been achieved? 

What areas are you not satisfied with? 

Unlike our operating result, our operating cash flow 

fell. It is, of course, our avowed aim to lift this 

figure too. The volatility in operating cash flow is 

traceable to the fluctuations in net current assets. 

Here, the fast and consistent invoicing of our 

services offers room for improvement. Appropriate 

steps have been taken. 

What prompted the adjustment of the 2002 and 

2003 Group financial statements? 

In view of the planned going public, we already 

adopted the IAS 8 (revised) and IAS 19 (amended), 

valid from 2005 onwards, for financial year 2004. 

To ensure comparability, the two previous years 

also needed to be restated. Financial years 2002 to 

2004 are now presented consistently. 

What do you regard as the principal challenges 

and risks? 

The main challenge is posed by the fact that a substantial 

portion of our activities is increasingly 

becoming a commodity business in which price 

plays a pivotal role. This also explains the continuing 

sector-wide pressure on margins. In this kind 

of scenario, additional growth is the sole means of 

offsetting lower margins. Besides, we need growth 

for greater economies of scale and to pave the way 

for further productivity gains. 

One risk that we treat with particular caution is that 

of currency fluctuations: while we consolidate in 

Swiss francs, dollars and euros each make up some 

40% of revenues. It is our general policy to eliminate 

currency risks by means of hedging. Our aim 

is merely to safeguard our operating result and 

we in no way endeavor to achieve currency gains 

through speculation. In this regard, we have clearcut 

policies for individual countries; the worldwide 

net exposure is centrally hedged in Basel.

“While the growth achieved in 2004 was almost 

exclusively organic driven, we shall increasingly look 

for bolt-on acquisitions in future.” 





Consolidated Income Statement 

for the years ended December 31, 2004, 2003 and 2002 

in CHF thousands Notes 2004 2003 2002 

Invoiced forwarding services 7,452,291 6,560,879 6,363,591 

Customs, duty and taxes (1,331,946) (1,198,509) (1,188,893) 

Net forwarding revenue 6,120,345 5,362,370 5,174,698 

Forwarding services from third parties (4,779,294) (4,123,508) (3,926,480) 

Contribution margin (gross profit) 1,341,051 1,238,862 1,248,218 

Personnel expenses 3 (782,383) (734,763) (725,896) 

Other operating expenses 4 (349,596) (308,973) (315,366) 

Gains on sales of non-current assets 5 2,925 299 4,236 

Depreciation of property, plant and equipment 10 (37,592) (42,834) (46,722) 

Amortization of intangible assets 11 (15,755) (12,945) (12,785) 

Impairment of financial assets 11 (5,799) (1,576) 0 

Operating result (EBIT) 152,851 138,070 151,685 

Financial income 6 6,577 5,515 10,300 

Financial expenses 6 (16,090) (19,038) (12,428) 

Earnings before taxes and minority interests 143,338 124,547 149,557 

Taxes on income 7 (30,949) (26,438) (32,818) 

Earnings before minority interests 112,389 98,109 116,739 

Minority interests 18 (966) (391) (1,111) 

Consolidated net earnings 111,423 97,718 115,628

Consolidated Balance Sheet 


Assets 



Current assets 

Cash and cash equivalents 230,097 330,700 299,487 

Financial assets held for trading 16,469 1,699 1,658 

Trade receivables 8 906,409 767,188 729,443 

Work in progress 58,541 57,042 57,042 

Other receivables and other current assets 9 51,398 54,821 49,881 

Total current assets 1,262,914 1,211,450 1,137,511 

Non-current assets 

Property, plant and equipment 10 159,232 153,946 167,420 

Financial and other assets 11 40,372 48,847 48,326 

Intangible assets 11 91,300 53,060 59,232 

Deferred tax assets 14 20,471 19,465 18,566 

Total non-current assets 311,375 275,318 293,544 

Total assets 1,574,289 1,486,768 1,431,055 

Liabilities and shareholders’ equity 


Current liabilities 

Trade payables 330,680 286,054 272,561 

Other payables and accruals 94,595 80,347 127,315 

Accrued cost of services 139,868 182,486 156,267 

Borrowings 15 36,324 32,020 35,610 

Other liabilities 12 61,221 43,983 40,317 

Current income tax liabilities 19,925 23,080 19,911 

Total current liabilities 682,613 647,970 651,981 

Non-current liabilities 

Borrowings 15 309 132 751 

Provisions 13 69,722 79,114 71,473 

Deferred tax liabilities 14 21,332 19,457 24,378 

Total non-current assets 91,363 98,703 96,602 

Total liabilities 773,975 746,673 748,583 

Minority interests 18 3,484 2,916 2,956 

Shareholders’ equity 

Share capital 16 50,000 50,000 50,000 

Translation and other reserves 17 (87,264) (66,940) (55,164) 

Retained earnings 17 834,094 754,119 684,680 

Total shareholders’ equity 796,830 737,179 679,516 

Total liabilities and shareholders’ equity 1,574,289 1,486,768 1,431,055 




Consolidated Statement of 

Recognized Income and Expenses 



Net investment hedge 

Transferred to profit or loss for the period 

Amounts recognized in equity for pension plan 

0 0 2,166 

Actuarial gains/(losses) 20 (9,818) 7,604 (30,546) 

Effect of impact of limit in paragraph 58b 20 7,876 (4,955) 26,357 

Foreign currency impact 20 9 (55) 40 

Tax effect 14 484 (874) 1,046 

Exchange difference on translations of foreign operations (20,324) (11,776) (47,491) 

Net earnings recognized directly in equity (21,773) (10,056) (48,428) 

Consolidated net earnings 111,423 97,718 115,628 

Total recognized earnings for the year 89,650 87,662 67,200

Consolidated Cash Flow Statement 




Total cash flow from operating activities 22 97,645 142,383 124,335 

Interest received 5,727 5,021 4,899 

Interest paid (7,445) (7,445) (9,620) 

Taxes paid (36,995) (23,209) (34,688) 

Other liabilities utilized (11,446) (20,042) (10,240) 

Long-term provisions utilized (13,540) (7,087) (2,783) 

Net cash flow from operating activities 33,946 89,621 71,903 

Cash flow from investing activities 

Property, plant and equipment (38,324) (32,637) (45,580) 

Investments (incl. goodwill) in consolidated subsidiaries 23 (39,699) 0 (74) 

Investments held for trading (14,344) (96) (17,375) 

Other financial investments (7,053) (7,044) (4,232) 

Intangible assets (31,389) (6,581) (2,997) 

Total investments (130,809) (46,358) (70,258) 

Proceeds from sales of property, plant and equipment 9,175 1,334 12,379 

Proceeds from sales of investments 24 0 0 1,637 

Loan repayments 3,382 1,291 2,106 

Proceeds from sales of securities 0 71 10 

Repayment of other financial assets 5,658 1,511 239 

Sale of intangible assets 898 53 1,450 

Total cash flow from investing activities (111,696) (42,098) (52,437) 

Cash flow from financing activities 

Proceeds from (repayment of) short-term borrowings 5,654 (1,432) 16,637 

Proceeds from (repayment of) long-term borrowings (670) (129) 867 

Dividends paid (30,000) (30,000) (20,000) 

Dividends paid to minority interests (94) (128) (212) 

Total cash flow from financing activities (25,110) (31,689) (2,708) 

Effect of exchange rate changes on cash and cash equivalents 2,257 15,379 34,619 

Increase (decrease) in cash and cash equivalents (100,603) 31,213 51,377 

Cash and cash equivalents at the beginning of the year 330,700 299,487 248,110 

Cash and cash equivalents at the end of the year 230,097 330,700 299,487 




Notes to the 

Consolidated Financial Statements 

1. Accounting policies used in the consolidation 

General 

Panalpina World Transport (Holding) Ltd. (the Company) with its subsidiaries (together the Group) is one of the world’s 

leading logistics and forwarding companies specialized in international air and sea transports. 

The Company is a limited company registered and domiciled in Basel. The address registered is Viaduktstrasse 42, 

4002 Basel, Switzerland. 

The consolidated financial statements have been approved for issue by the Board of Directors on April 19, 2005. 

Basis of preparation 

The consolidated financial statements are prepared in accordance with historical cost convention except for the revaluation 

to market value of certain financial assets and liabilities and comply with the International Financial Reporting Standards 

(IFRS). The accounting policies applied in preparing the financial statements are described below. 

The preparation of the financial statements requires management to make assumptions and estimates about future developments 

that affect the financial situation and performance set out in the financial statements. The actual outcome may differ 

from the assumptions and estimates made. 

Early adoption of standards 

In 2004, the Group decided to adopt early IAS 8 (revised 2003) “Accounting Policies, Changes in Accounting Estimates and 

Errors” and IAS 19 (amended 2004) “Employee Benefits”. Consequently the 2003 and the 2002 comparatives have been 

amended correspondingly. All changes in the accounting policies have been made in accordance with the transition provision 

set out in the two revised standards. 

The adoption of IAS 8 (revised 2003) resulted in a change of accounting policy regarding the treatment of errors. In the 

past, errors prior to that date have been corrected in the income statement in the period the error has been discovered. 

In accordance with IAS 8 (revised 2003) the Group is correcting material prior period errors retrospectively by restating the 

comparative amounts for the prior periods presented in which the error occurred. If the error occurred before 2002, the 

opening balances of assets, liabilities and equity have been restated. 

As a result of periodical review the Group has discovered in 2003 and 2004 that in selected subsidiaries in the past some 

accruals have been overstated or understated due to incorrect calculation. In the financial statement 2003, the error 

discovered, was corrected in the income statement 2003. In accordance with IAS 8 (revised 2003) this error is corrected 

retrospectively. The error discovered in 2004 had no effect on the presented income statement. Therefore only the opening 

balance of 2002 was restated. As a result balance sheet and income statement are affected as follows: 

in CHF thousands Notes 2002 2003 

Increase (decrease) in accrued cost of services (11,705) 4,735 

Increase (decrease) in deferred tax assets 14 1,383 1,383 

Increase (decrease) in deferred tax liabilities 14 6,354 0 

Increase (decrease) in equity 31/12/ net of tax 6,734 (3,352) 

(Increase) decrease in forwarding expenses 7,033 (17,139) 

(Increase) decrease in income taxes 7 (2,718) 6,624 

Increase (decrease) in net consolidated earnings 4,315 (10,515)


In 2004 the Group discovered that in the past invoices have been erroneously overcharged. The amounts were corrected 

in the respective periods presented. Balance Sheet and Income Statement are affected as follows: 


Increase (decrease) in provisions 13 3,642 4,408 

Increase (decrease) in deferred tax assets 14 1,238 1,499 

Increase (decrease) in equity 31/12/ net of tax (2,404) (2,909) 

Increase (decrease) in forwarding revenue (1,702) (1,261) 

(Increase) decrease in income taxes 7 579 429 

Increase (decrease) in net consolidated earnings (1,123) (832) 

The adoption of IAS 19 (amended 2004) results in a change of accounting policy for the recognition of all actuarial gains 

and losses. The Group decided to recognize all actuarial gains and losses for defined benefit plans in the periods in 

which they occur outside the Income Statement in the Statement of Recognized Income or Expenses. Balance Sheet 

and Income Statement are affected as follows: 


Increase (decrease) in pension plan assets 20 (33,491) (32,886) 

Increase (decrease) in provisions 13 3,683 349 

Increase (decrease) in deferred tax liabilities 14 (9,449) (8,241) 

Increase (decrease) in equity 31/12/ net of tax (27,725) (24,994) 

(Increase) decrease in personnel expenses 3 (380) 1,345 

(Increase) decrease in income taxes 7 95 (334) 

Increase (decrease) in net consolidated earnings (285) 1,011 

New accounting pronouncements – not yet adopted 

In December 2003, the International Accounting Standards (IAS) were amended when the IASB released revised IAS 32, 

Financial Instruments: Disclosure and Presentation and IAS 39, Financial Instruments: Recognition and Measurement. 

These standards replace IAS 32 (revised 2000), and supersede IAS 39 (revised 2000), and must be applied for annual 

periods beginning on or after January 1, 2005. In December 2003, as a part of the IASB’s project to improve international 

accounting standards, the IASB released revisions to the following standards that supersede the previously released 

versions of those standards: IAS 1, Presentation of Financial Statements; IAS 2, Inventories; IAS 10, Events after the 

Balance Sheet Date; IAS 16, Property, Plant and Equipment; IAS 17, Leases; IAS 21, The Effects of Changes in Foreign 

Exchange Rates; IAS 24, Related Party Disclosures; IAS 27, Consolidated and Separate Financial Statements; IAS 28, 

Investments in Associates; IAS 31, Interests in Joint Ventures; IAS 33, Earnings per Share and IAS 40, Investment 

Property. The revised standards must be applied for annual periods beginning on or after January 1, 2005. During 2004 

the following International Financial Reporting Standards (IFRS) were issued: 

IFRS 2, Share-Based Payments; IFRS 4, Insurance Contract; IFRS 5, Non-Current Assets Held for Sale and Discontinued 

Operations and IFRS 6, Exploration for and Evaluation of Mineral Resources. 

Under IFRS 3, with effect from January 1, 2005, goodwill originated from acquisition before March 31, 2004 is considered 

to have an indefinite life and is not amortized, but is subject to annual impairment testing. Goodwill of CHF 20.1 million 

recognized in the Group’s financial statement on the transaction occurred after March 31, 2004 is already subject to the 

new accounting policy and has not been amortized. 

The management has reviewed the new accounting pronouncement released in 2004. The adoption of the new pronouncements, 

except for the early adopted standards as described above, does not have any significant impact on the 

Group’s income statement and financial position. 




Scope and method of consolidation 

The consolidated financial statements comprise the financial statements of all companies which are directly or indirectly 

controlled by Panalpina. Control is defined as the power to govern the financial and operating policies of an enterprise so as 

to obtain benefits from its activities. 

The purchase method of accounting is used for acquired businesses. Companies acquired or disposed of during the year are 

included in the consolidated financial statements from the date of acquisition or up to the date of disposal. The cost of an 

acquisition is measured as the fair value of the assets given and liabilities incurred at the date of exchange, plus costs directly 

attributable to the acquisition. 

Identifiable assets acquired and 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. 

Intercompany transactions, debts and receivables as well as intercompany income and expenses have been eliminated. 

Investments in associated companies are those entities in which the Group is able to exercise a significant influence over the 

financial and operational policy, generally accompanying a shareholding of between 20% and 50% of the voting rights. 

Associates are accounted for using the equity method and initially recognized at cost. 

The majority of Group companies and equity investments are listed on page 70 ff. 

Minority interests 

The interests of minority shareholders in net assets and net income are disclosed as minority interests. 

Reclassification 

Certain prior-year balances have been reclassified to conform to the current year’s presentation. 

In 2004, Management decided to disclose work in progress and accrued cost of services separately from trade payables. 

Management believes that a gross disclosure of work in progress and accrued cost of services is a fair presentation of the 

Group’s activities. 

Revenue recognition 

Net forwarding revenue includes services for forwarding invoiced to third parties less charges for customs, duty and taxes. 

Net forwarding revenue is recognized at the time the services are performed and invoiced. 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. 

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 was established. 

Financial risk management 

The Group is aware that in conducting the core business different financial risks may impact the financial performance. 

Therefore, financial risk management is 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 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 separation of duties between Front, Middle and Back Office. The Middle Office is independently in charge 

of monitoring compliance to 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, 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.

Financial risk factors 


Foreign exchange risk 

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, 

primarily with respect to the US dollar. Foreign exchange risk arises from future commercial transactions, recognized 

assets and liabilities and 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 intercompany financing. Affiliates are also required to repatriate their excess cash. Liquidity is mainly 

managed at the 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 counterparty’s failure to meet its obligation. The Group is exposed to credit risk on financial 

instruments, mainly its liquid assets, derivative assets and trade receivables. Credit risk is managed in accordance with 

clear and well-acknowledged 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 not material. 

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 need. 

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. 

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. 

Impairment of tangible and intangible assets 

Long-lived assets are regularly reviewed for impairment, including intangibles and goodwill, whenever events or changes 

in circumstance indicate that the balance sheet-carrying amount of the asset may not be recoverable. In order to 

assess if there is any impairment, estimates are made of the future cash flows expected to result from the use of the 

asset or cash-generating unit and its eventual disposal and of the fair value of the asset or cash-generating unit. 

Litigation 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 that might not be covered by existing provisions or by insurance. 

The Group believes that the outcomes of such actions, if any, would not be material to the Group’s financial condition, 

but could be material to future results of operations in a given period. 

Income taxes 

The Group is subject to income taxes in numerous jurisdictions. Significant judgment is required in determining the 

worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination 

is uncertain during the ordinary course of business. 

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 on 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. 

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 economical point of view). Otherwise, the Group can designate individual 

derivatives as either: 

• a hedge of the exposure to changes in 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 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. 

Foreign currency translation 

Presentation and measurement currency 

The consolidated financial statements of the Group are presented in Swiss francs. 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, 

which is generally the local currency (measurement currency). 

Translation of Group companies 

Expenses and revenue of the consolidated companies are translated at the average exchange rates prevailing during the 

year. All assets and liabilities are translated at year-end exchange rates. The resulting translation differences are recognized 

in shareholders’ equity. In addition the Group recognizes in equity exchange differences on a monetary item that in substance 

forms part of net investments in a subsidiary (quasi-equity loans). These exchange differences are taken to income 

statement on the sale of a subsidiary or repayment of an intercompany quasi-equity loan. 

Foreign currency transactions 

Transactions in a foreign currency other than the measurement currency of an entity are translated into the measurement 

currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting 

from the settlement of such transactions and from the translation at closing exchange rates of monetary assets and liabilities 

are recognized in the income statement (or – in very limited circumstances – in equity when the foreign currency transaction 

is designated as a cash flow hedge or a net investment hedge). 

Translation differences on non-monetary items, such as equities classified as available-for-sale financial assets, are included 

in the other reserves as equity. 

The most important exchange rates used in the reported financial statements are: 

2004 2003 2002 

Balance Income Balance Income Balance Income 

Sheet Statement Sheet Statement Sheet Statement 

EUR 1.5427 1.5438 EUR 1.5590 1.5161 EUR 1.4542 1.4680 

USD 1.1322 1.2445 USD 1.2368 1.3416 USD 1.3881 1.5587 

GBP 2.1804 2.2776 GBP 2.2056 2.2002 GBP 2.2276 2.3429

Cash and cash equivalents 


Cash and cash equivalents included in the balance sheet and cash flow statement represents cash, bank and postal 

cheques, bills of exchange, bank current account balances and time deposits as well as 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. 

Trade receivables 

Accounts receivable from third parties represent invoiced amounts less valuation adjustments for impairments. Impairment 

adjustments are established based upon the difference between the receivable and the estimated net collectible 

amount discounted to present value at the balance sheet date. 

Work in progress 

Work in progress represents the gross amount due from customers for forwarding services in progress for which costs 

incurred exceed progress billings. For logistics projects and other services with a longer period of delivery recognized 

profits are included. 

Property, plant and equipment 

Property, plant and equipment have been valued at the cost of acquisition and are depreciated on a straight-line basis to 

the income statement over the following estimated useful lives: 

Land is not depreciated – 

Warehouse and office buildings 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 

Assets acquired under financial leases are initially recognized at fair value or present value of minimum lease payments if 

lower and are depreciated over shorter of useful life and the lease term. 

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 in excess of the originally assessed standard 

of performance will flow to the Group and the cost of the item can be measured reliably. All costs for repair and maintenance 

are charged to the income statement during the period in which they are incurred. 

Gains and losses on disposals are determined by comparing proceed with carrying amount. These are included in the 

income statement. 

Leases 

Financial leasing agreements are recorded at the date of the agreement. Lease payments are divided into an amortization 

of a finance lease liability and an interest element. The interest element is charged to the income statement using the 

effective interest rate method. 

Leases of assets under which all the risks and benefits of ownership are substantially retained by the lessor are classified 

as operating leases. Payments made under operating leases are charged to the income statement on a straight-line 

basis over the period of the lease. 

Investments 

The Group classifies its financial investments into the following categories according to IAS 39: 

• Held-for-trading 

• Originated loans and receivables 

• Available-for-sale 

The classification depends on the nature of the asset and the purpose of the transaction. The Group does not classify 

any financial instruments as “held-to-maturity”. 

Years 




Held-for-trading 

A financial asset is classified as held-for-trading 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 qualifying 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, while other receivables are presented in non-current assets. 

Loans and receivables are included in the following line items of the balance sheet: 

• Trade receivables (the treatment of the trade receivables is outlined in more details in the “Trade receivables” section) 

• Other receivables and other current assets include 

– Short-term active loans 

– Other receivables 

• Financial and other assets 

– Receivables 

Available-for-sale 

All non-derivative financial assets, which 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 

non-current assets, unless they are expected to be sold within twelve months after the balance sheet date. 

Recognition and measurement 

Purchases and sales of investments are recognized on settlement date. Investments are initially recognized at fair value of 

consideration given plus transaction costs. 

Held-for-trading investments are subsequently carried at fair value, with all changes in fair value recorded as financial income 

(expenses) in the period in which they arise. Originated loans and receivables are subsequently carried at amortized cost 

using the effective interest rate method. Available-for-sale investments are subsequently carried at fair value, with changes in 

fair value recorded in equity (except for currency revaluation gains/losses on monetary available-for-sale financial assets, 

which are included in profit or loss according to IAS 21). When available-for-sale investments are sold, impaired or otherwise 

disposed of, the cumulative gains and losses previously recognized in equity are included in financial income (expenses) for 

the current period. 

Fair values 

The fair value of investments is based on quoted bid prices for exchange traded instruments. For unlisted securities or 

over-the-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 the “Impairment of assets” section. 

Intangible assets 

Acquired intangible assets such as brands, trademarks and software licenses are shown at historical cost less accumulated 

amortization and impairment losses if any. Customer lists and customer relations acquired in a business combination after 

March 31, 2004 are separately identified and recognized at fair value at the date of acquisition. The mentioned intangible assets 

have a definite useful life and are amortized. Amortization is calculated using the straight-line method. Software licenses are 

amortized over 3–5 years, all other intangible assets over a maximum of 15 years. 

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets 

of the acquired subsidiary at the date of acquisition. Acquisitions prior to March 31, 2004 were accounted in accordance with 

IAS 22 and goodwill was amortized over its useful life (maximum 10 years). The remaining useful life is reviewed periodically. 

Acquisitions since April 1, 2004 are accounted in accordance with IFRS 3 and goodwill is no longer amortized but instead is 

assessed annually for impairment. The unamortized goodwill is taken into account in calculating the gain or loss on disposal 

of an investment. 

Costs in connection with internally developed software are recognized as an expense as incurred. Computer software developed 

internally is capitalized if the development costs can be measured reliably and if the software product is of long-term 

use for the organization. Capitalized software development costs recognized as assets are amortized over their estimated 

useful life (not exceeding three years). Costs for maintaining and modifying existing programs are charged to the income 

statement.

Impairment of assets 


Tangible assets and identifiable intangibles assets are reviewed for impairment whenever events or changes in circumstances 

indicate that the carrying amount of the asset may not be recoverable. Goodwill acquired since March 31, 2004 

is reviewed for impairment annually. When events or changes in circumstances indicate the value may not be fully 

recoverable, the Group estimates its value in use based on the future cash flows. If the carrying amount of the asset 

exceeds the higher of its value in use or its fair value less cost to sell, the Group recognizes an impairment loss. 

For purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable 

cash flows (cash-generating units). 

Borrowings 

Borrowings are recognized initially as proceeds received, net of transaction costs incurred. Borrowings are subsequently 

measured at amortized cost and the difference between the proceeds (net of transaction costs) and the redemption 

value amortized over the lifetime of the borrowings using the effective interest rate method. 

Provisions 

The Group establishes provisions if it has a current legal or constructive obligation as a result of past events requiring 

a settlement with third parties and if the amount of the obligation can be reliably estimated. 

Provisions are established specifically for: 

• Employees’ pension fund balances, and 

• Claims from freight forwarding 

Current and deferred income taxes 

Current income taxes are accrued for the taxable income of the current financial year. 

Deferred taxes arise from temporary differences between the tax bases of assets and liabilities and their carrying values 

for financial reporting. The calculation is made using the balance sheet liability method applying currently enacted tax 

rates expected to apply when the temporary difference reverse. The tax effects of loss carry forwards and deductible 

temporary differences are capitalized only if it is probable that they can be set off against future taxable profits or taxable 

temporary differences. The Group’s deferred tax assets and deferred tax liabilities are disclosed separately under noncurrent 

assets and non-current liabilities respectively. Changes in deferred tax liabilities and assets are reported in the 

income statement. An exception is deferred tax on transactions that are recorded directly in shareholders’ equity. Such 

deferred taxes are also recorded in shareholders’ equity. 

Provisions for withholding tax, which would arise on dividend distributions to the parent companies, are made only if the 

parent company intends to declare a dividend. As a rule subsidiaries’ profits are considered permanently reinvested. 

Employee benefits 

Short-term benefits, such as salaries and wages, contributions to compulsory social security schemes, vacation accruals 

and bonuses, are accrued periodically and charged to the income statement when the employee provides related services. 

In order to provide long-term employee benefits, such as pensions, the Group operates legally separate pension funds 

providing benefits according to defined benefit or defined contribution plans. The plan assets funding the benefits 

are predominantly 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 and Switzerland has shown that they are defined benefit 

schemes. They are assessed using the projected unit credit method. Under this method the cost of providing pensions is 

charged to the income statement to spread the regular cost over the service period of employees. The pension 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 obligations 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 statement 

of recognized income and expenses. 

Other long-term employee benefits exist in form of jubilee 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. 




2. Segmental reporting 

Reporting by geographical segments 

Europe/Africa/Middle East/CIS North America 

in CHF millions 2004 2003 2002 2004 2003 2002 

External invoiced forwarding services 3,512 3,056 2,965 1,316 1,213 1,140 

Intersegment invoiced forwarding servcies 2,062 1,822 1,592 274 364 309 

Net forwarding revenue 5,574 4,878 4,557 1,590 1,577 1,449 

Forwarding services from third parties (4,784) (4,156) (3,843) (1,346) (1,344) (1,195) 

Segment contribution margin 790 722 714 244 233 254 

Other segment expenses (723) (633) (617) (238) (240) (253) 

Segment operating result (EBIT) 67 89 97 6 (7) 1 

Financial result 

Earnings before taxes 

Taxes on income 

Earnings before minority interests 

Minority interests 

Consolidated net earnings 

Additional information 

Segment assets 953 984 924 300 227 231 

Segment liabilities 465 482 464 104 83 94 

Capital expenditure 60 27 38 6 5 6 

Depreciation of property, plant and equipment 24 28 29 6 7 9 

Amortization of intangible assets 10 12 12 2 1 1 

Impairment of financial assets 6 2 0 0 0 0 

The Group organizes its business primarily by regions. For strategic and organizational reasons, Panalpina decided in 2003 to 

separate the America Region into North and South America Region. The Africa Region, Middle East and CIS (Commonwealth 

of Independent States) was for organizational reasons integrated into the Europe Region to form a single EMEA Region. 

Segment information is prepared on the basis of the location of the assets. Usually the location of the customers generally 

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 intersegmental transactions. 

Reporting by business segments 

Air Sea 

in CHF millions 2004 2003 2002 2004 2003 2002 

Revenue 3,086 2,720 2,573 2,102 1,885 1,833 

Total assets 643 547 517 427 375 345 

Capital expenditure 47 13 14 21 9 10 

The Group’s business can be divided into three divisions: Air, Sea and Supply Chain Management. The assets allocated to 

the divisions primarily comprise trade receivables, work in progress, accruals and tangible fixed assets. Cash, financial 

investments and assets related to the central management functions are not allocated.


Central and South America Asia/Pacific Eliminations Total 

2004 2003 2002 2004 2003 2002 2004 2003 2002 2004 2003 2002 

608 521 533 684 573 536 6,120 5,363 5,174 

119 106 113 480 450 371 (2,935) (2,742) (2,385) 0 0 0 

727 627 646 1,164 1,023 907 (2,935) (2,742) (2,385) 6,120 5,363 5,174 

(616) (526) (527) (968) (840) (746) 2,935 2,742 2,385 (4,779) (4,124) (3,926) 

111 101 119 196 183 161 0 0 0 1,341 1,239 1,248 

(96) (110) (117) (131) (118) (109) (1,188) (1,101) (1,096) 

15 (9) 2 65 65 52 153 138 152 

(10) (14) (2) 

143 124 150 

(31) (26) (33) 

112 98 117 

(1) 0 (1) 

111 98 116 

109 95 100 163 124 122 1,525 1,430 1,377 

32 19 17 95 89 93 696 673 668 

2 4 3 18 3 6 86 39 53 

4 4 5 4 4 4 38 43 47 

1 0 0 3 0 0 16 13 13 

0 0 0 0 0 0 6 2 0 

Supply Chain Management Unallocated Total 

2004 2003 2002 2004 2003 2002 2004 2003 2002 

932 758 768 0 0 0 6,120 5,363 5,174 

190 180 163 314 385 406 1,574 1,487 1,431 

7 9 10 4 8 19 86 39 53 




3. Personnel expenses 

in CHF thousands 2004 2003 2002 

Salaries and wages 612,025 573,533 566,745 

Cost of defined contribution plans 37,352 37,057 37,655 

Cost of defined benefit plans 7,047 9,092 8,324 

Other social security costs 66,635 59,672 60,046 

Miscellaneous 59,324 55,409 53,126 

Total personnel expenses 782,383 734,763 725,896 

The number of employees increased during the current year by 880 to 13,224 (2003: 12,344; 2002: 12,463). 

4. Other operating expenses 


Administrative expenses 26,813 22,572 23,480 

Communication expenses 66,925 61,991 63,246 

Rent and utilities expenses 142,005 130,382 127,579 

Travel and promotion expenses 54,513 45,977 46,110 

Insurance expenses and claims 21,327 20,631 30,668 

Bad debt and collection expenses 11,630 6,336 5,049 

Other operating expenses 26,383 21,084 19,234 

Total operating expenses 349,596 308,973 315,366 

5. Gain on sales of non-current assets 


On sales of investments 0 0 (97) 

On sales of property, plant and equipment 2,925 299 4,333 

Total net gain on sale of non-current assets 2,925 299 4,236 

In the current year the net gain from the sale of assets results essentially from the sale of operational property in the USA 

(in 2002 the net gain from the sale of assets results essentially from the sale of operational property in Switzerland). 

6. Net financial result 


Interest income 5,858 4,236 8,812 

Other financial income 719 1,279 1,488 

Financial income 6,577 5,515 10,300 

Interest expenses (9,978) (8,050) (8,586) 

Exchange differences (1,539) (6,657) 326 

Bank charges (3,440) (3,200) (3,157) 

Other financial expenses (1,133) (1,131) (1,011) 

Financial expense (16,090) (19,038) (12,428) 

Net financial result (9,513) (13,523) (2,128)

7. Taxes on income 



Current income taxes 31,680 33,159 27,942 

Deferred income taxes (731) (6,721) 4,876 

Total taxes on income 30,949 26,438 32,818 

The following table reconciles expected and actually disclosed tax expenses. The expected tax expenses are 

determined by multiplying the result before income taxes and the tax rate applicable in Switzerland. 


Earnings before taxes 143,338 124,547 149,557 

Tax at the applicable tax rate of 25% (2003: 25%; 2002: 25%) 35,834 31,137 37,389 

Effect of differing national tax rates (7,574) (12,532) (7,646) 

Utilization of non-capitalized tax loss carryforwards (220) (865) (1,730) 

Capitalization of deferred tax assets from previous periods 0 0 (1,410) 

Not recognized loss carryforwards 2,353 1,383 1,249 

Effect of changes in the tax rate on temporary differences (400) 616 (161) 

Withholding tax on dividends received 1,008 1,200 369 

Expenses not deductible for tax purposes and non-taxable income (1,389) 3,081 4,377 

Miscellaneous 1,337 2,418 381 

Actual tax charge 30,949 26,438 32,818 

Expenses not deductible for tax purposes were incurred primarily in Italy, France, Germany, UK and Brazil 

(2003: in Germany, Italy and France; 2002: in Germany, Italy and Brazil). The heading “Miscellaneous” includes mainly 

other income taxes such as IRAP in Italy and CIDE in Brazil. 

8. Trade receivables 


Commercial clients 903,406 767,596 729,250 

Agents 37,841 31,849 34,912 

Total trade receivables (gross) 941,247 799,445 764,162 

Impairment of receivables (34,838) (32,257) (34,719) 

Total trade receivables (net) 906,409 767,188 729,443 

9. Other receivables and other current assets 


Office supplies 2,012 4,507 936 

Taxes (VAT, withholding tax) 21,385 20,568 19,998 

Accrued income 5,980 3,914 4,835 

Accrued interest income 531 754 697 

Personnel advances 423 455 0 

Prepaid rent expenses 3,750 3,166 3,028 

Others 17,317 21,457 20,387 

Total trade receivables (net) 51,398 54,821 49,881 




10. Property, plant and equipment 

Land Machinery Vehicles Construc- Total Total Total 

and and tion in 2004 2003 2002 

in CHF thousands buildings equipment progress 

Acquisition costs 

Balance on January 1 160,189 219,925 29,718 99 409,931 404,735 428,383 

Translation differences (5,792) (8,528) (1,533) (47) (15,900) (8,908) (40,442) 

Change in the scope of consolidation 6,958 1,156 6,420 570 15,104 0 0 

Additions 5,500 25,138 5,617 2,069 38,324 32,637 45,580 

Disposals (7,927) (16,099) (4,078) 0 (28,104) (18,418) (28,735) 

Reclassifications 2,149 394 (68) (2,363) 112 (115) (51) 

Balance on December 31 161,077 221,986 36,076 328 419,467 409,931 404,735 

Accumulated depreciation 

Balance on January 1 62,169 170,097 23,719 0 255,985 237,315 236,512 

Translation differences (3,352) (7,581) (437) 0 (11,370) (6,800) (25,182) 

Additions 8,047 26,693 2,852 0 37,592 42,834 46,722 

Disposals (5,045) (13,782) (3,027) 0 (21,854) (17,383) (20,687) 

Reclassifications (157) 107 (68) 0 (118) 19 (50) 

Balance on December 31 61,662 175,534 23,039 0 260,235 255,985 237,315 

Net book value on January 1 98,020 49,828 5,999 99 153,946 167,420 191,871 

Net book value on December 31 

Of which net book value of assets 

99,415 46,452 13,037 328 159,232 153,946 167,420 

acquired under finance leases 98 0 0 0 98 850 1,542 

11. Financial and other intangible assets 

Financial and other assets Intangible assets 

Available- Receiv- Pension Goodwill Other Total Total Total 

for-sale ables plan intangible 2004 2003 2002 

in CHF thousands investments assets assets 

Acquisition costs 

Balance on December 31 26,327 12,777 11,560 79,600 33,151 163,415 157,594 178,717 

IAS 19 restatements on opening balance (27,665) 

Balance on January 1 26,327 12,777 11,560 79,600 33,151 163,415 157,594 151,052 

Translation differences (50) (256) 0 (708) (912) (1,926) (926) (2,939) 

Change in the scope of consolidation 0 0 0 12,812 10,424 23,236 0 0 

Additions 5 6,511 0 7,275 24,986 38,777 18,428 21,397 

Disposals (61) (8,828) 0 0 (764) (9,653) (11,796) (11,967) 

Reclassifications 0 0 0 1,562 (159) 1,403 115 51 

Balance on December 31 26,221 10,204 11,560 100,541 66,726 215,252 163,415 157,594 

Accumulated depreciation or 

impairment losses 

Balance on January 1 1,736 81 0 34,658 25,033 61,508 50,035 40,247 

Translation differences (1) (2) 0 164 (834) (673) (1,563) (1,389) 

Additions 5,799 0 0 8,751 7,004 21,554 14,521 12,785 

Disposals 0 0 0 0 (442) (442) (1,466) (1,657) 

Reclassifications 0 0 0 1,562 71 1,633 (19) 50 

Balance on December 31 7,534 79 0 45,135 30,832 83,580 61,508 50,036 

Net book value on January 1 24,591 12,696 11,560 44,942 8,118 101,907 107,559 138,470 

Net book value on December 31 18,687 10,125 11,560 55,406 35,894 131,672 101,907 107,558


Available-for-sale investments are disclosed only for equity investments for which no active market with publicly quoted 

market values exists. 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 2004, impairment charges of CHF 5.8 million were recorded to net available-for-sale investments relating to the 

valuation of the equity investment GF-X. 

Receivables includes third-party loans of CHF 2.2 million (2003: CHF 5.4 million; 2002: CHF 3.7 million) and mainly rental 

deposits of CHF 7.9 million (2003: CHF 3.2 million; 2002: CHF 5.0 million). 

Impairment test for goodwill 

Goodwill is allocated to the Group’s cash-generating units (CGUs) identified to country of operation. The goodwill in 

connection with the Grampian acquisition has been tested for impairment. 

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. As a result of the test, no goodwill impairment charge 

was recognized in 2004. 

The following key assumptions have been made for the goodwill impairment test of Grampian: 

• Yearly growth of forwarding revenue 5% 

• EBIT margin amounting to 6.9% 

• Working capital as a percentage of forwarding revenues 5% 

• Growth rate in capital expenditure and depreciation 10% 

• Discount rate used 10% 

• Tax rate used 35% 

The net book value of other intangible assets comprises: 

• Software in the amount of CHF 15.2 million (2003: CHF 6.7 million; 2002: CHF 3.9 million) 

• Other intangible assets CHF 19.3 million (mainly acquired brands and customer relations) 

12. Other liabilities 

Outstanding Claims Employee Total Total Total 

vacation benefits 2004 2003 2002 

in CHF thousands entitlement 

Other liabilities 

Balance on January 1 20,595 3,953 19,435 43,983 40,317 31,807 

Translation differences (542) 0 (447) (989) 370 (2,111) 

Change in scope of consolidation 141 0 14 155 0 0 

Additional accruals 3,488 10,060 16,351 29,899 26,821 22,452 

Reversals of other liabilities 0 0 (8,284) (8,284) (3,483) (1,591) 

Charged in income statement 3,087 10,060 7,634 20,781 23,708 18,750 

Amount paid (2,306) 0 (9,142) (11,448) (20,042) (10,240) 

Transfers 0 7,905 0 7,905 0 0 

Balance on December 31 21,376 21,918 17,927 61,221 43,983 40,317 

Employee benefits include payroll, bonuses, social security and payroll taxes. 




13. Provisions 

Long-term provisions 

Employee Claims and Total Total Total 

benefits other 2004 2003 2002 

provisions 

Balance on December 31 48,710 30,404 79,114 71,473 60,276 

IAS 8 and 19 restatements on opening balance 7,107 

Balance on January 1 48,710 30,404 79,114 71,473 67,383 

Translation differences (727) (467) (1,194) 1,298 (2,551) 

Addition 5,668 21,147 26,815 19,455 17,404 

Reversal of unused amount (254) (9,280) (9,534) (6,025) (7,980) 

Charged in income statement 4,687 11,400 16,087 14,728 6,873 

Utilized during the year (1,864) (15,710) (17,574) (7,087) (2,783) 

Transfers 0 (7,905) (7,905) 0 0 

Balance on December 31 51,533 18,189 69,722 79,114 71,473 

Employee benefits provisions include the current portion of net liabilities relating to defined benefit plans of CHF 28.6 million 

(2003: CHF 24.2 million; 2002: CHF 21.3 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 December 31 is expected to be utilized within the next 2–3 years. 

Long-term claims include an additional provision for probable potential future payments in connection with transport 

damages. 

Management determined the provision based on past performance and the anticipated funds needed for future settlement of 

claims for services delivered in the past, which have yet to be reported. 

14. Deferred taxes 

Deferred taxes are related to the following balance sheet items: 

Deferred tax assets Deferred tax liabilities 

in CHF thousands 2004 2003 2002 2004 2003 2002 

Receivables 4,085 4,263 4,510 (972) (1,557) (1,186) 

Fixed assets 3,837 2,780 2,653 (13,250) (11,576) (10,724) 

Provisions 5,903 6,600 7,736 (5,983) (1,499) (6,692) 

Other balance sheet captions 10,936 6,063 6,163 (7,100) (6,038) (9,729) 

Deductible loss carryforwards 1,683 972 1,457 0 0 0 

Total 26,444 20,678 22,519 (27,305) (20,670) (28,331) 

Net deferred tax assets (liabilities) (861) 8 (5,812)


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: 


Deferred tax assets 20,471 19,465 18,566 

Deferred tax liabilities (21,332) (19,457) (24,378) 

Net deferred tax assets (liabilities) (861) 8 (5,812) 

The gross movement on the deferred income tax account is as follows: 


Balance on December 31 8 (5,812) (6,573) 

Restatements on opening balance 0 0 6,754 

Balance on January 1 8 (5,812) 181 

Translation differences (955) (25) (2,161) 

Change in the scope of consolidation (256) 0 0 

Income statement charge (142) 6,719 (4,877) 

Tax charged to equity due to IAS 19 (amended 2004) 484 (874) 1,045 

Balance on December 31 (861) 8 (5,812) 

During the year being reported deferred tax assets were not established on taxable temporary differences amounting net 

(i.e. after setting off deferred tax assets against tax liabilities for companies with a net tax asset) to CHF 114,000 

because it is not probable that they can be set off against future profits. 

Year of expiry of unrecognized tax 

loss carry-forwards (in CHF thousands) 2004 2003 2002 

2004 0 314 0 

2005 495 1,687 711 

2006 1,060 4,421 280 

2007 3,172 719 916 

2008 137 21 0 

2009 1,854 0 0 

Later 11,803 9,052 5,166 

Total unrecognized tax loss carry-forwards 18,521 16,214 7,073 

The unrecognized tax loss carryforwards increased in UK, Turkey, Brazil and Malaysia. The tax loss carryforwards 

expired in Ecuador, Azerbaijan, Panama and Australia. 

At December 31, 2004 un-remitted earnings of CHF 277.8 million (2003: CHF 274.2 million; 2002: 275.1 million) 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. 




15. Borrowings 

Short-term borrowings (in CHF thousands) 2004 2003 2002 

Bank borrowings 11,237 19,180 15,368 

Cheques and bills in transit 21,139 10,984 16,863 

Finance lease liabilities 141 873 981 

Other loans 3,807 983 2,398 

Total short-term borrowings 36,324 32,020 35,610 

Long-term borrowings (in CHF thousands) 2004 2003 2002 

Finance lease liabilities 155 113 297 

Other 154 19 454 

Total long-term borrowings 309 132 751 

The weighted average interest rate of bank borrowings and other financing liabilities is 3.45% (2003: 3.6%; 2002: 4.71%). 

The carrying amounts of short-term bank borrowings approximate their fair value. 

Maturity of long-term financial debts (excluding lease liabilities) 2004 2003 2002 

2004 0 0 454 

2005 0 19 0 

2006 112 0 0 

2007 42 0 0 

2008 0 0 0 

Later 0 0 0 

Total 154 19 454 

The carrying amounts of the Group’s borrowings are denominated in the following currencies: 

2004 2003 2002 

USD 15,796 2,169 8,765 

EUR 4,248 6,407 11,785 

XAF 4,001 3,972 5,507 

CAD 3,646 2,963 10 

NGN 3,641 4,685 4,601 

TWD 2,044 2,296 1,607 

GBP 1,206 3,618 327 

INR 778 538 68 

MYR 367 2,034 1,066 

HUF 0 1,010 145 

SGD 408 874 986 

Others 498 1,587 1,494 

Total 36,633 32,153 36,361 

16. Share capital 

On December 31, 2004, the share capital amounted to CHF 50 million, and comprised 50,000 registered shares with a nominal 

value of CHF 1,000 each. The Ernst Göhner Foundation, Zug, is the sole shareholder, holding 100% of shares. 

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 2004 the 

dividend paid was CHF 30 million (2003: CHF 30 million; 2002: CHF 20 million).

17. Change in translation and other reserves and retained earnings 

The movements in translation and other reserves and retained earnings recognized in shareholders’ equity 

are as follows: 


Translation Retained 

in CHF thousands differences earnings 

Balance on December 31, 2001 (7,580) 615,518 

Restatement IAS 8 

– Over- or understated accruals (net of tax) (106) 2,677 

– Overcharged invoices (net of tax) 13 (1,705) 

Restatement IAS 19 (net of tax) (24,336) 

Restated balance on January 1, 2002 (7,673) 592,154 

Consolidated net income 115,629 

Dividends paid (20,000) 

Settlement of group loans, as per IAS 39, transfer to profit or loss statement 2,166 

Actuarial gains/losses IAS 19 (net of tax) (3,103) 

Valuation of group loans, as per IAS 21 (9,570) 

Translation differences (40,087) 




Actuarial gains/losses IAS 19 (net of tax) 1,720 


Translation differences 5,719 




Actuarial gains/losses IAS 19 (net of tax) (1,449) 


Translation differences 6,982 


18. Minority interests 


Balance on January 1 (net) 2,916 2,956 2,620 

Translation differences (304) (303) (563) 

Interest in profit 966 391 1,111 

Dividends paid (94) (128) (212) 

Total net minority interests 3,484 2,916 2,956 




19. Derivative financial instruments 

The year-end contract value is calculated on the total volume of individual contracts using the value at year-end. The positive 

replacement value represents the theoretical profit if the open currency contracts had been closed out as of December 31. 

Correspondingly, the negative replacement value represents the theoretical loss on closing the currency transactions open as 

of December 31.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 replacement Negative replacement 

Contract value value value 

in CHF thousands 2004 2003 2002 2004 2003 2002 2004 2003 2002 

Foreign exchange contracts 705,553 405,810 441,450 8,543 9,730 21,537 (2,329) (603) (7,549) 

Forward trading hedges 568,695 405,810 441,450 8,291 9,730 21,537 (2,288) (603) (7,549) 

Foreign exchange options 136,858 0 0 252 0 0 (41) 0 0 

Positive replacement Negative replacement 

Contract value value value 

in CHF thousands 2004 2003 2002 2004 2003 2002 2004 2003 2002 

Terms of the forward 

foreign exchange contracts 705,553 405,810 441,450 8,543 9,730 21,537 (2,329) (603) (7,549) 

0– 3 months 694,406 405,810 404,807 8,543 9,730 19,614 (1,032) (603) (7,549) 

4–12 months 11,147 0 36,643 0 0 1,923 (1,297) 0 0 

13–18 months 0 0 0 0 0 0 0 0 0 

Derivative financial instruments are spread over the following currencies: 

Forward foreign exchange contracts 


USD 490,113 279,742 347,440 

EUR 120,130 54,850 60,584 

CAD 7,257 5,424 1,654 

GBP 13,658 5,042 0 

HKD 29,927 22,407 15,242 

SGD 10,830 8,325 1,051 

AUD 6,984 9,244 8,801 

JPY 8,075 7,927 3,817 

SEK 5,212 3,865 0 

NZD 2,775 3,110 2,549 

Other 10,592 5,874 312 

Total 705,553 405,810 441,450

20. 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. Capitalized is the portion of the surplus which Management estimates will 

generate an economic benefit to the Group in the form of future contribution reductions. 


Fair value of plan assets 237,033 226,302 205,822 

Defined benefit obligation (DBO) funded (218,804) (200,190) (184,815) 

(Deficit)/surplus 18,229 26,112 21,007 

Unrecognized surplus due to paragraph 58b (11,216) (19,092) (14,137) 

Defined benefit obligation (DBO) unfunded (24,032) (22,599) (21,432) 

(Liability) asset recognized in balance sheet (17,019) (15,579) (14,562) 

The following amounts were recorded in the income statement 

relating to defined benefit plans: 

Calculation of pension cost for year ending 

Current service cost (17,900) (16,514) (13,681) 

Interest cost (8,310) (7,809) (7,638) 

Expected return on assets 10,070 9,192 10,358 

Member contributions 6,043 5,279 2,170 

Settlements/curtailments 3,050 760 467 

Net periodic pensions (cost) credit (7,047) (9,092) (8,324) 

Actual return of plan assets 10,944 19,552 (29,366) 

Changes in defined benefit obligation (DBO) 

DBO beginning of year (222,789) (206,247) (202,950) 

Current service cost (17,900) (16,514) (13,681) 

Interest cost (8,310) (7,809) (7,638) 

Actuarial gains/(losses) recognized in equity (10,692) (2,756) 9,178 

Benefit paid 14,744 11,861 8,018 

Liabilities extinguished on settlement 2,222 0 0 

Currency impact (111) (1,324) 826 

DBO end of year (242,836) (222,789) (206,247) 

The movements recorded in the balance sheet are: 

Changes in fair value of plan asset 

Fair value beginning of year 226,302 205,822 237,054 

Employer contributions 7,680 6,800 3,611 

Member contributions 6,043 5,279 2,170 

Expected return on assets 10,070 9,192 10,358 

Actuarial gains/(losses) recognized in equity 874 10,360 (39,724) 

Benefit paid (13,916) (11,101) (7,551) 

Currency impact (20) (50) (96) 

Fair value end of year of plan asset 237,033 226,302 205,822 





Analysis of amounts recognized in equity 

Recognized equity on January 1 74,268 76,862 72,713 

Actuarial gains (losses) fair value (874) (10,360) 39,724 

Actuarial gains (losses) DBO 10,692 2,756 (9,178) 

Effect of impact of limit in para 58b (7,876) 4,955 (26,357) 

Currency impact (9) 55 (40) 

Recognized equity on December 31 76,201 74,268 76,862 

Amounts for the current and previous periods 

DBO 222,789 206,247 202,950 

Plan assets 226,302 205,822 237,054 

(Deficit)/surplus (3,513) 425 (34,104) 

Experienced gains (losses) on plan liability (13,316) (2,756) 9,178 

Experienced gains (losses) on plan assets 874 10,360 (39,724) 

Major categories of plan assets are as follows: 

Cash and cash equivalents 7,901 13,543 14,795 

Equity investments 79,610 93,189 79,685 

Bonds 121,232 93,795 89,520 

Investment funds 21,262 15,891 14,644 

Insurance contracts 7,028 9,884 7,178 

The following weighted parameters have been chosen as the actual basis: 

Discount rate 3.80% 3.80% 3.80% 

Expected return on pension plan assets 4.50% 4.50% 4.50% 

Salary increase 1.50% 2.00% 2.00% 

Rate in pension increase 1.00% 2.00% 2.00% 

The overall expected return of plan assets is based on country specific long-term market expectations at the beginning of 

the period. 

21. Related parties 

Members of the Board of Directors and senior management and members of their family are defined as persons related to 

the Group. In the normal course of business the following remuneration was paid: 

2004 2003 2002 

in CHF Persons in CHF Persons in CHF Persons 

thousands thousands thousands 

Remuneration of members of the Board 

of Directors and of senior management 6,799 14 5,892 14 5,027 12 

There were no contributions or donations to members of their families. 

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 and in note 16, there are no other significant transactions requiring 

disclosure.

22. Cash flow statement 


Cash flow from operating activities (in CHF thousands) 2004 2003 2002 

Consolidated net income before taxes 143,338 124,547 149,558 

Depreciation of property, plant and equipment 37,592 42,834 46,722 

Impairment of financial investments 5,799 0 4 

Amortization of intangible assets 15,755 12,945 12,781 

(Decrease) increase in long-term provisions 13,601 10,983 13,146 

Loss/(gain) on sales of fixed assets (2,925) (299) (4,332) 

Loss/(gain) on sales of investments 0 0 97 

Decrease (increase) in excess assets of pension funds (280) 123 2,628 

Interest income (5,857) (4,236) (8,811) 

Interest expense 5,225 8,050 8,584 

Cash flow before interest and taxes 212,248 194,947 220,377 

Decrease/(increase) receivables and other current assets (196,819) 4,506 (59,307) 

(Decrease)/increase payables, accruals and deferred income 60,601 (80,409) (57,596) 

(Decrease)/increase other liabilities 21,615 23,338 20,861 

Total cash flow from operating activities 97,645 142,382 124,335 

23. Business combination 

On April 1, 2004, Panalpina acquired 100% of the share capital of the Grampian Group, which offers global air and sea 

freight forwarding services as well as European road transport for the oil and gas industry. The acquired business 

contributed revenue of CHF 55.3 million and net profit of CHF 3.6 million to the Group for the period from April 1 to 

December 31, 2004. If the acquisition had occurred on January 1, 2004, Group gross revenue would have been 

CHF 7.5 billion, and net income would have been CHF 111.5 million. 

Details of net assets acquired and goodwill are as follows: 

in CHF thousands 2004 

Purchase consideration: 

– Cash paid 42,282 

– Direct costs relating to the acquisition 211 

Total purchase consideration 42,494 

Fair value of net assets acquired (29,682) 

Goodwill 12,812 

The goodwill is attributable to the high profitability of the acquired business and the synergies expected to arise after the 

Group’s acquisition. 




The assets and liabilities arising from the acquisition are as follows: 

Acquiree’s Revaluation due Fair 

carrying to purchase value 

in CHF thousands amount accounting 

Cash and cash equivalents 2,795 0 2,795 

Property, plant and equipment 15,104 0 15,104 

Intangible assets 35 10,389 10,424 

Receivables 14,565 (336) 14,230 

Payables (11,247) (136) (11,383) 

Borrowings (1,231) 0 (1,231) 

Deferred tax liabilities (394) 138 (256) 

Net assets 19,627 10,055 29,682 

Less acquired liquidity (2,795) 

Goodwill 12,812 

Total cash flow from acquisition of businesses 39,699 

In addition the Group increased its investment in Nigeria in 2004 from 61.0% to 69.0% by acquiring further voting shares. 

There were no acquisitions in the years ended December 31, 2003 and 2002. 

24. Disinvestments 

Neither in 2004, 2003, nor in 2002 were significant subsidiaries sold. 

25. Additional information 

Contractual commitments on non-cancellable operating lease contracts 


2004 0 50,338 41,644 

2005 86,251 41,020 33,636 

2006 49,114 33,617 27,132 

2007 39,013 26,984 24,772 

2008 32,854 23,956 0 

2009 28,973 67,322 64,684 

Later 65,695 – – 

Total residual commitments 301,900 243,237 191,868


Included in the residual lease commitments is an operating lease contract for an aircraft (total CHF 25.6 million), leased 

by Panalpina Airfreight Management AG. The contract with a yearly notice period expires in August 2005. 

Obligations under finance lease contracts 


2004 0 900 204 

2005 147 58 58 

2006 149 29 36 

2007 0 0 0 

2008 0 0 0 

Later 0 0 0 

Total residual commitments 296 987 298 

Pledged assets 

The value of pledged assets amounts to CHF 15,000 (prior year CHF 704,000). 

Pending legal claims 

Various subsidiaries are involved in legal disputes in the ordinary course of business as defendants in legal disputes, 

as a result of which obligations could arise. It is possible that their satisfaction may not, or only partially, be covered by 

insurance. 

Group management is, however, of the opinion that no consequences can arise from these pending legal claims which 

could significantly affect the Group’s financial position. If the result of the legal proceedings can be reasonably estimated, 

the corresponding provisions are created. 

Subsequent events 

Since the balance sheet date no events have become known for which a disclosure is required. 




26. Principal Group companies and participations 

Nominal Equity Method 

capital interest Invest- of con- 

Company Registered Currency in 1,000 in % ment solidation 

Europe 

Panalpina World Transport (Holding) Ltd. Basel CHF 50,000 100 1 C 

Panalpina Management AG Basel CHF 2,500 100 1 C 

Panalpina Finance Limited Jersey CHF 10,000 100 1 C 

Panalpina AG Basel CHF 600 100 1 C 

ASB Air Sea Broker AG Basel CHF 3,000 100 1 C 

Pantainer AG Basel CHF 100 100 1 C 

Panalpina Insurance Broker AG Basel CHF 100 100 1 C 

Hausmann Transport AG Reinach CHF 100 100 1 C 

Panalpina Airfreight Management AG Basel CHF 2,700 100 1 C 

Jacky Maeder AG Basel CHF 2,000 100 1 C 

Panalpina Welttransport (Deutschland) GmbH Mörfelden EUR 10,226 100 1 C 

Panalpina Welttransport GmbH Bremen EUR 153 100 1 C 

Panalpina Welttransport GmbH Düsseldorf EUR 154 100 1 C 

Panalpina Welttransport GmbH Hamburg EUR 153 100 1 C 

Panalpina Welttransport GmbH Kehl EUR 153 100 1 C 

Panalpina Welttransport GmbH Mörfelden EUR 153 100 1 C 

Panalpina Welttransport GmbH Nürnberg EUR 3,937 100 1 C 

Panalpina Welttransport GmbH Stuttgart EUR 153 100 1 C 

Panalpina Ocean Freight Management GmbH Hamburg EUR 150 100 1 C 

Panalpina Welttransport GmbH Vienna EUR 36 100 1 C 

Panalpina Welttransport GmbH Höchst EUR 36 100 1 C 

Panalpina France Transports Internationaux S.A.S. Paris-Roissy EUR 4,500 100 1 C 

Panalpina Trasporti Mondiali S.p.A. Milan EUR 2,000 100 1 C 

Panalpina Transportes Mundiales S.A. Madrid EUR 451 100 1 C 

Panalpina Transportes Mundials Lda. Lisbon EUR 50 100 1 C 

Panalpina World Transport Ltd. London GBP 500 100 1 C 

Panalpina World Transport (Ireland) Ltd. Dublin EUR 25 100 1 C 

Grampian International Freight Ltd. Aberdeen GBP 97 100 1 C 

Panalpina World Transport N.V. Antwerp EUR 124 100 1 C 

Panalpina Luxembourg S.A. Luxembourg EUR 31 100 1 C 

Panalpina World Transport B.V. Amsterdam EUR 91 100 1 C 

Grampian International Freight B.V. Beverwijk EUR 18 100 1 C 

Panalpina Czech Sro. Prague CZK 1,000 100 1 C 

Panalpina Magyarorszag Kft. Budapest HUF 3,000 100 1 C 

Panalpina AB Gothenburg SEK 1,000 100 1 C 

Panalpina World Transport Nakliyat Ltd. Srk. Istanbul TRL 70,000,000 100 1 C 

Panalpina World Transport ZAO Moscow RUB 2,100,176 100 1 C 

Panalpina World Transport Ltd. Kiev USD 220 100 1 C 

Luxair S.A. Luxembourg EUR 13,744 12 4 N 

C = fully consolidated 

N = not consolidated 

1 = capital participation 91–100% 


3 = controlling influence over management 

4 = capital participation less than 50%





North, Central and South America 

Panalpina Inc. Miami USD 4,000 100 1 C 

Hensel, Bruckmann & Lorbacher, Inc. Farmingdale N.Y. USD 50 100 1 C 

Panalpina Inc. Toronto CAD 100 100 1 C 

Panalpina Transportes Mundiales, S.A. de C.V. Mexico City MXN 8,900 100 1 C 

Panalpina S.A. Panama City USD 1,250 100 1 C 

Almacenadora Mercantil S.A. Panama City USD 25 100 1 C 

Panalpina S.A. de C.V. San Salvador SVC 100 100 1 C 

Panalpina Transportes Mundiales S.A. San José CRC 2,500 100 1 C 

Panalpina Uruguay Transportes Mundiales S.A. Montevideo UYU 4,500 100 1 C 

Panalpina S.A. Santa Fé de Bogotá COP 7,450,838 100 1 C 

DAPSA Depositos Aduaneros Panalpina S.A. Santa Fé de Bogotá COP 2,815,208 100 1 C 

Panalpina C.A. Caracas VEB 180,000 100 1 C 

Inversiones Ortac C.A. Caracas VEB 6,000 100 1 C 

Panalpina Ecuador S.A. Quito ECS 20,000 100 1 C 

Panalpina Aduanas S.A. Lima PEN 333 100 1 C 

Panalpina Transportes Mundiales S.A. Lima PEN 1,460 100 1 C 

Panalpina Ltda. São Paulo BRL 1,277 100 1 C 

Panalpina Chile Transportes Mundiales Ltda. Santiago USD 102 100 1 C 

Panalpina Transportes Mundiales S.A. Buenos Aires ARS 20 100 1 C 

Panalpina Transportes Mundiales S.A. de C.V. Santo Domingo USD 1 100 1 C 

Panalpina Reinsurance Ltd. Hamilton CHF 2,000 100 1 C 

Asia and Australia 

Panalpina World Transport (Singapore) Pte. Ltd. Singapore SGD 2,500 100 1 C 

PT Panalpina Nusajaya Transport Jakarta IDR 1,500,000 100 1 C 

Panalpina China Limited Hong Kong HKD 1,000 100 1 C 

Panalpina World Transport (PRC) Ltd. Shanghai CNY 5,000 100 1 C 

Panalpina Asia-Pacific Services Ltd. Hong Kong HKD 500 100 1 C 

Panalpina Taiwan Ltd. Taipei TWD 15,500 100 1 C 

Panalpina IAF (Korea) Ltd. Seoul KRW 500,000 100 1 C 

Panalpina World Transport (Thailand) Limited Bangkok THB 14,000 49 3 C 

Panalpina Macao Limited Macao HKD 1,000 100 1 C 

Panalpina Transport (Malaysia) Sdn. Bhd. Kuala Lumpur MYR 4,215 100 1 C 

Panalpina World Transport (Japan) Ltd. Tokyo JPY 50,000 100 1 C 

Panalpina World Transport (India) Pvt. Ltd. Delhi INR 1,667 100 1 C 

Panindia Cargo Private Ltd., Dehli Delhi INR 100 100 1 C 

Panalpina World Transport (Philippines) Inc. Manila PHP 10,000 100 1 C 

Panalpina World Transport (Pty) Limited Sydney AUD 2,500 100 1 C 

Panalpina Kazakhstan LLP Almaty USD 1 100 1 C 




26. Principal Group companies and participations 




Africa and Middle East 

Panalpina Gulf LLC Dubai AED 1,000 49 3 C 

Panalpina (Bahrain) WLL Manama BHD 10 100 1 C 

Panalpina Central Asia EC Manama USD 300 100 1 C 

Panalpina Georgia LLC Tbilisi USD 5 100 1 C 

Panalpina Azerbaijan LLC Baku USD 1 100 1 C 

Panalpina Turkmenistan LLC Turkmenbashi USD 60 100 1 C 

Qatar Shipping Company (Panalpina Qatar) WLL Doha QAR 200 49 3 C 

Panalpina Transports Mondiaux Cameroon S.A.R.L. Douala XAF 150,000 90 1 C 

Panalpina World Transport Ltd. (Equitorial Guinea) Malabo XAF 10,000 100 1 C 

Panalpina Transports Mondiaux Congo SARL Pointe Noire XAF 70,000 80 1 C 

Panalpina Transports Mondiaux Gabon S.A. Port-Gentil XAF 50,000 90 1 C 

Panalpina World Transport (Nigeria) Limited Apapa NGN 100,000 69 2 C 

Panalpina (Ghana) Limited 

Panalpina Transportes Mundiais Navegaçao 

Accra GHC 100,000 100 1 C 

e Transitos, S.A.R.L. Luanda AON 18,000,000 80 1 C 

C = fully consolidated 

N = not consolidated 



3 = controlling influence over management 

4 = capital participation less than 50%

Report of the Group Auditors 

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, statement of 

recognized income and expenses, balance sheet, statement of cash flows and notes /pages 42 to 72) of Panalpina 

World Transport (Holding) Ltd. for the years ended December 31, 2004, 2003 and 2002. 

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 auditing standards promulgated by the Swiss profession 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 

A. Baur Th. Brüderlin 

Basel, April 19, 2005 




Key Figures in CHF 

5-year review 

in CHF millions 2004 2003 2002 2001 2000 

Invoiced forwarding services 7,452 6,561 6,364 6,717 6,879 

Change in % 13.59 3.10 (5.26) (2.35) 26.43 

Net forwarding revenue 6,120 5,362 5,175 5,386 5,373 

Change in % 14.14 3.63 (3.92) 0.24 27.75 

Gross profit (contribution margin) 1,341 1,239 1,248 1,280 1,188 

Change in % 8.25 (0.75) (2.48) 7.74 23.49 

in % of net revenue 21.91 23.10 24.12 23.77 22.11 

Consolidated net earnings 111.4 97.7 115.6 111.7 92.7 

Change in % 14.03 (15.49) 3.52 20.50 26.47 

in % of gross profit 8.31 7.89 9.26 8.73 7.80 

EBITDA 212.0 195.4 211.2 223.9 185.0 

Change in % 8.48 (7.47) (5.68) 21.03 22.35 


EBITA 174.4 152.6 164.5 213.2 180.8 

Change in % 14.30 (7.22) (22.86) 17.92 22.35 


EBIT 152.9 138.1 151.7 155.8 133.2 

Change in % 10.71 (8.98) (2.64) 16.97 24.84 


Cash flow before interest and taxes 212.2 194.9 220.4 215.9 187.6 

Change in % 8.87 (11.54) 2.07 15.09 61.45 


Net cash flow from operating activities 33.9 89.6 71.9 326.7 54.1 

Change in % (62.12) 24.64 (77.99) 503.88 (25.17) 


Free cash flow (77.7) 47.5 19.5 195.8 11.0 

Change in % (263.61) 144.13 (90.06) 1,680.00 (83.82) 

in % of gross profit (5.80) 3.84 1.56 15.30 0.93 

Net working capital 370.1 263.1 220.0 175.2 318.1 

Change in % 40.65 19.59 25.57 (44.92) 44.92



Capital expenditure on fixed assets 89.9 51.1 67.0 127.0 57.9 

Change in % 76.08 (23.76) (47.26) 119.34 (33.60) 


Net capital expenditure on fixed assets 74.5 39.7 48.6 114.2 50.3 

Change in % 87.54 (18.34) (57.43) 127.04 12.53 


Depreciations 59.1 57.4 59.5 68.2 51.8 

Change in % 3.12 (3.62) (12.75) 31.66 16.40 


Personnel expenses 782.4 734.8 725.9 744.2 700.6 

Personnel 

Number of employees at year-end (World) 13,224 12,344 12,463 12,042 11,586 

Number of employees at year-end (Switzerland) 669 755 813 927 869 

Yearly average (World) 12,784 12,404 12,253 11,814 11,301 

Productivity ratios (CHF) 

Net sales per average employee 478,750 432,327 422,338 455,900 475,466 

Gross profit per average employee 104,901 99,880 101,875 108,346 105,128 

Personnel expenses per average employee 61,200 59,238 59,245 62,993 61,997 

Personnel expenses in % of gross profit 58.34 59.31 58.15 58.14 58.97 

Leverage (liabilities/equity) 0.97 1.01 1.10 1.13 1.39 

Net interest bearing liabilities (231) (311) (282) (232) (64) 

Gross gearing (interest bearing liabilities/equity) 0.02 0.03 0.03 0.03 0.18 

Net gearing (net interest bearing liabilities/equity) (0.28) (0.41) (0.40) (0.35) (0.11) 

ROCE (EBIT/capital employed) in % 23.67 26.03 27.76 26.31 23.42 

Current cash debt coverage ratio 

(Net operating cash flow/average current liability) 0.05 0.14 0.11 0.50 0.08 

Cash debt coverage ratio 

(Net operating cash flow/average total liability) 0.04 0.12 0.10 0.43 0.07 

Return on equity in % 14.5 13.8 17.3 18.3 17.6 

Change in % 5.30 (20.21) (5.58) 4.00 7.16 




Balance Sheet in CHF 

5-year review 


Assets 1,574 1,487 1,431 1,404 1,365 

Change in % 5.89 3.89 1.93 2.86 6.89 

Current assets 1,263 1,211 1,138 1,055 1,065 

Change in % 4.25 6.50 7.82 (0.94) 9.56 

Liquid funds 247 332 301 250 165 

Change in % (25.82) 10.38 20.46 51.52 (17.91) 

Receivables and other current assets 1,016 879 836 805 900 

Change in % 15.62 5.10 3.90 (10.56) 16.71 

Fixed assets 311 275 293 349 300 

Change in % 13.10 (5.89) (16.18) 16.33 (1.32) 

Tangible assets 159 154 167 192 197 

Change in % 3.43 (8.05) (12.80) (2.54) (3.90) 

Financial assets 61 68 66 86 85 

Change in % (10.93) 3.67 (23.38) 1.18 14.86 

Intangible assets 91 53 59 71 18 

Change in % 72.07 (10.42) (16.57) 294.44 (28.00) 

Liabilities and shareholders’ equity 1,574 1,487 1,431 1,404 1,365 

Change in % 5.89 3.89 1.93 2.86 6.89 

Liabilities 774 747 749 743 783 

Change in % 3.66 (0.26) 0.75 (5.11) 1.03 

Payables. accruals and deferred income 646 616 616 571 529 

Change in % 4.93 (0.07) 7.95 7.94 5.17 

Borrowings 37 32 36 28 113 

Change in % 13.94 (11.58) 29.86 (75.22) (23.65) 

Provisions 91 99 96 144 141 

Change in % (7.63) 2.84 (33.44) 2.13 13.71 

Minorities 3 3 3 3 20 

Equity 797 737 680 658 562 

Change in % 8.09 8.49 3.27 17.08 14.46 

Share capital 50 50 50 50 50 

Change in % 0.00 0.00 0.00 0.00 0.00 

Translation differences (87) (67) (55) 0 0 

Change in % 30.36 21.35 0.00 0.00 0.00 

Retained earnings 834 754 685 608 512 

Change in % 10.61 10.14 12.61 18.75 16.10

Key Figures in EUR 

3-year review 


in EUR millions 2004 2003 2002 

Invoiced forwarding services 4,827 4,327 4,218 

Change in % 9.67 2.60 

Net forwarding revenue 3,964 3,537 3,430 

Change in % 9.79 3.12 

Gross profit (contribution margin) 869 817 827 

Change in % 4.75 (1.23) 

in % of net revenue 21.91 23.10 24.12 

Consolidated net earnings 72.2 64.5 76.6 

Change in % 1.27 (15.90) 

in % of gross profit 8.31 7.89 9.26 

EBITDA 137.3 128.9 140.0 

Change in % (2.02) (7.92) 


EBITA 113.0 100.6 109.0 

Change in % 12.24 (7.68) 


EBIT 99.0 91.1 100.5 

Change in % 8.72 (9.42) 


Cash flow before interest and taxes 137.5 128.6 146.1 

Change in % 6.92 (11.97) 


Net cash flow from operating activities 22.0 59.1 47.7 

Change in % (62.80) 24.03 


Free cash flow (50.4) 31.3 12.9 

Change in % (260.67) 142.94 

in % of gross profit (5.80) 3.84 1.56 

Net working capital 239.9 168.8 148.4 

Change in % 42.14 13.70 





Capital expenditure on fixed assets 58.3 32.8 45.2 

Change in % 77.93 (27.51) 


Net capital expenditure on fixed assets 48.3 25.5 32.8 

Change in % 89.51 (22.37) 


Depreciations 38.3 37.8 39.4 

Change in % 1.27 (4.09) 


Personnel expenses 506.8 484.6 481.1 

Personnel 

Number of employees at year-end (World) 13,224 12,344 12,463 

Number of employees at year-end (Switzerland) 669 755 813 

Yearly average (World) 12,784 12,404 12,253 

Productivity ratios 

Net sales per average employee 310,110 285,157 279,935 

Gross profit per average employee 67,949 65,880 67,525 

Personnel expenses per average employee 39,642 39,073 39,269 

Personnel cost in % of gross profit 58.34 59.31 58.15 

Leverage (liabilities/equity) 0.97 1.01 1.10 

Net interest bearing liabilities (150) (200) (190) 

Gross gearing (interest bearing liabilities/equity) 0.02 0.03 0.03 

Net gearing (net interest bearing liabilities/equity) (0.29) (0.42) (0.42) 

ROCE (EBIT/capital employed) in % 23.67 26.03 27.76 

Current cash debt coverage ratio 

(net operating cash flow/average current liability) 0.05 0.14 

Cash debt coverage ratio 

(net operating cash flow/average total liability) 0.04 0.12 

Return on equity in % 14.6 13.8 17.1 

Change in % 5.47 (19.18) 11.59

Balance Sheet in EUR 

3-year review 



Assets 1,020 954 965 

Change in % 7.00 (1.16) 1.86 

Current assets 819 777 767 

Change in % 5.35 1.25 7.82 

Liquid funds 160 213 203 

Change in % (25.04) 4.94 20.46 

Receivables and other current assets 659 564 564 

Change in % 16.84 (0.07) 3.90 

Fixed assets 202 177 197 

Change in % 14.29 (10.52) (16.18) 

Tangible assets 103 99 113 

Change in % 4.52 (12.58) (12.80) 

Financial assets 39 44 44 

Change in % (9.99) (1.43) (23.38) 

Intangible assets 59 34 40 

Change in % 73.88 (14.83) (16.57) 

Liabilities and shareholders’ equity 1,020 954 965 

Change in % 6.88 (1.16) 2.66 

Liabilities 502 479 505 

Change in % 4.75 (5.17) 0.75 

Payables, accruals and deferred income 419 395 416 

Change in % 6.03 (4.99) 7.95 

Borrowings 24 21 25 

Change in % 15.14 (15.93) 29.86 

Provisions 59 63 65 

Change in % (6.65) (2.23) (33.44) 

Minorities 2 2 2 

Equity 516 473 458 

Change in % 8.98 3.27 4.87 

Share capital 34 34 34 

Change in % 0.00 0.00 0.00 

Translation differences (59) (58) (30) 

Change in % 0.64 96.70 0.00 

Retained earnings 540 497 454 

Change in % 8.62 9.60 12.61 



Panalpina World Transport (Holding) Ltd. 


Income Statement 


in CHF thousands 2004 2003 

Income 

Income from participations 124,312 122,717 

Financial income 18,023 16,316 

Rental income 350 350 

Other income 47 50 

Total income 142,732 139,433 

Expense 

Personnel expenses 753 780 

Other administrative expenses 6,831 2,895 

Financial expenses 31,110 16,429 

Depreciation and valuation adjustments 10,558 149 

Total expenses 49,252 20,253 

Taxes 1,000 1,200 

Profit for the year 92,480 117,980 

Presentation of the income statement was changed in 2004. The prior financial year was adjusted for comparative 

purposes. 




Balance Sheet 

as of December 31 (before profit appropriation) 

Assets 


Current assets 

Cash 42,869 89,041 

Receivables 242 311 

– from Group companies 0 0 

– from third parties 242 311 

Financial receivables from Group companies 201,792 121,857 

Time deposits 15,000 10,031 

Prepaid expenses and deferred charges 10,564 15,786 

Total current assets 270,467 237,026 

Long-term assets 

Buildings and real estate p.m. p.m. 

Participations 118,568 118,568 

Loans to Group companies 199,916 135,853 

Total long-term assets 318,484 254,421 

Total assets 588,951 491,447

Liabilities 



Short-term liabilities 

Banks 0 0 

Payables 1,000 2,570 

– due to group companies 952 2,435 

– due to third parties 48 135 

Financial liabilities to Group companies 83,055 58,126 

Accrued expenses 3,373 2,594 

Total short-term liabilities 87,428 63,290 

Long-term liabilities 

Provisions 39,916 29,030 

Total long-term liabilities 39,916 29,030 

Total liabilities 127,344 92,320 


Share capital 50,000 50,000 

General legal reserve 10,000 10,000 

Special reserve 297,850 207,850 

Retained earnings 103,757 131,277 

– brought forward 11,277 13,297 

– profit for the year 92,480 117,980 

Total shareholders’ equity 461,607 399,127 

Total liabilities 588,951 491,447 




Notes 

General 

The Group’s consolidated financial statements must be considered for a proper financial and economic assessment of the 

company. The financial statements of the parent company, Panalpina World Transport (Holding) Ltd., are included in this 

part of the annual report as supplementary information to the consolidated financial statements and were prepared in accordance 

with the accounting principles prescribed by Swiss company law. 

Financial receivables from group companies 

Financial receivables increased by CHF 79.9 million compared with the prior year. The increase is largely contributable to the 

granting of new short-term loans to Panalpina Airfreight Management Ltd. aggregating CHF 40.4 million, to Panalpina USA 

aggregating CHF 18.5 million and to Panalpina Singapore aggregating CHF 11.1 million, which primarily serve as working 

capital financing for these companies. It was possible to reduce or repay several local bank loans as a result. 

Participations 

The increase in the year under review amounted to CHF 7.4 million, which is comprised of acquisitions. As a commercial 

precaution, value adjustments were made amounting to CHF 7.4 million. 

Time deposits 

Investments were made in time deposits during the year under review, which amounted to CHF 15.0 million at year-end. 

The maturity of these instruments varies between three months and one year. 

Loans to Group companies 

Loans increased by CHF 64.1 million in the year under review. This increase primarily comprises the granting of new 

long-term loans to Panalpina England aggregating CHF 38.1 million and to Panalpina USA aggregating CHF 23.9 million. 

Provisions 

These include provisions relating exclusively to foreign exchange risks. 

Financial liabilities to group companies 

The increase in financial liabilities is mainly a result of the granting of a new loan by Panalpina Management Ltd. 


The fully-paid share capital on December 31, 2004 amounted to CHF 50 million, consisting of 50,000 registered shares with 

a nominal value of CHF 1,000 each. 

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. 

Financial expense 

The increase in financial expenses is predominantly due to greatly increased loss coverage of subsidiaries as well as to 

higher external interest payments. 

Depreciation and valuation adjustments 

In the year under review, value adjustments totaling CHF 10.6 million were made to the debit of the Income Statement. 

This refers to value reduction making use of the Swiss Code of Obligation, primarily for loans to and participations in our 

subsidiaries in Latin America and other emerging nations.



Guarantees in favor of third parties 

Guarantees and indemnity liabilities, 

Code of Obligations, article 663b 109,947 118,263 

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 36.0 million (prior year: CHF 42.6 million). 

Fire insurance value of buildings and real estate 1,546 1,494 

Shareholders 

Ernst Göhner Foundation, Zug 100% 100% 




Appropriation of Profit 

The Board of Directors recommends the following appropriation of available earnings of CHF 103,757,000 

at the Annual General Meeting: 

in CHF thousands 2004 

80% dividend on share capital of CHF 50 million 40,000 

One-time anniversary dividend 20,000 

Transfer to special reserve 30,000 

To be carried forward 13,757 

Total 103,757

Report of the Statutory Auditors 

To the General Meeting of 

Panalpina World Transport (Holding) Ltd., Basel 


As statutory auditors, we have audited the accounting records and the financial statements (income statement, balance 

sheet and notes/pages 81 to 86) of Panalpina World Transport (Holding) Ltd. for the year ended December 31. 

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 auditing standards promulgated by the Swiss profession, 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 

A. Baur Th. Brüderlin 

Basel, April 19, 2005 



Main offices worldwide 

Algeria 

Hassi Messaoud 

Angola 

Cabinda, Lobito, Luanda, Soyo 

Argentina 

Buenos Aires 

Australia 

Brisbane, Melbourne, Sydney 

Austria 

Graz, Hoechst, Innsbruck, Linz, 

Vienna 

Azerbaijan 

Baku 

Bahrain 

Manama 

Bangladesh 

Chittagong, Dhaka 

Belgium 

Antwerp, Brussels, Liège, 

Voeren-Fouron 

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, Montreal, Ottawa, 

Quebec, Toronto, Vancouver, 

Windsor, Winnipeg 

Chile 

Iquique, Santiago, Valparaíso 

China 

Beijing, Chengdu, Dalian, 

Fuzhou, Guangzhou, Haikou, 

Hangzhou, Hong Kong, Macau, 

Nanjing, Ningbo, Qingdao, 

Shanghai, Shenyang, Shenzhen, 

Suzhou, Tianjin, Urumqi, Wuxi, 

Xiamen, Xi’an, Zhuhai 

Colombia 

Barranquilla, Bogotá, Buenaventura, 

Cali, Cartagena, 

Medellín, Pereira 

Congo 

Pointe-Noire 

Costa Rica 

San José 

Czech Republic 

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, 

Dortmund, Dusseldorf, 

Frankfurt, Hamburg, Hanover, 

Kassel, Kehl, Leipzig, 

Ludwigshafen, Munich, 

Muenster/Osnabrueck, 

Nuremberg, Stuttgart 

Ghana 

Accra, Takoradi, Tema 

Hungary 

Budapest 

India 

Ahmedabad, Bangalore, 

Chennai, Cochin, Coimbatore, 

Hyderabad, Kolkata, Mumbai, 

New Delhi, Pune, Tirupur 

Indonesia 

Jakarta, Semarang, Surabaya 

Ireland 

Dublin, Shannon 

Italy 

Bergamo, Biella, Bologna, 

Como, Florence, Genoa, 

Milan, Monteprandone, Rome, 

Turin, Vicenza 

Japan 

Fukuoka, Nagoya, Osaka, 

Sapporo, Tokyo 

Kazakhstan 

Aktobe, Almaty, Aqtau, Atyrau 

Korea 

Busan, Daegu, Iksan, Incheon, 

Seoul

Luxembourg 

Luxembourg 

Malaysia 

Johor Bahru, Kuala Lumpur, 

Penang 

Mexico 

Cancún, Guadalajara, 

México City, Monterrey, Tijuana 

Morocco 

Casablanca 

Netherlands 

Amsterdam, Eindhoven, 

Maastricht, Moerdijk, Rotterdam 

New Zealand 

Auckland 

Nigeria 

Abuja, Apapa (Lagos), Kaduna, 

Kano, Port Harcourt, Warri 

Panamá 

Colón, Panamá,Tocumen 

Peru 

Callao, Lima 

Philippines 

Cebu, Manila 

Portugal 

Lisbon, Porto 

Puerto Rico 

San José 

Qatar 

Doha 

Russia 

Moscow, Nakhodka, 

Noyabrsk, St. Petersburg, 

Usinsk,Yekaterinburg, 

Yuzhno-Sakhalinsk 

Saudi Arabia 

Al Khobar, Jeddah, Riyadh 

Singapore 

Singapore 

South Africa 

Cape Town, Durban, East 

London, Johannesburg, 

Port Elizabeth 

Spain 

Barcelona, Bilbao, Madrid, 

Valencia 

Sri Lanka 

Colombo 

Sweden 

Gothenburg, Stockholm 

Switzerland 

Basel, Berne, Geneva, Lugano, 

St. Gall, Zurich 

Taiwan 

Hsin-Chu, Kaohsiung, 

Taichung, Taipei 

Thailand 

Bangkok, Laem Chabang 

Turkey 

Ankara, Istanbul, Izmir 

Turkmenistan 

Ashgabad, Turkmenbashi 

Ukraine 

Borispol, Kiev 

United Arab Emirates (UAE) 

Dubai, Sharjah 

United Kingdom (UK) 

Aberdeen, Birmingham, 

Glasgow, Great Yarmouth, 

London, Manchester, 

Prestwick 

Main offices worldwide 

United States of America (USA) 

Anchorage, Atlanta, Austin, 

Baltimore, Boston, Bradley/ 

Hartford, Charleston, Charlotte, 

Chicago, Cincinnati, Cleveland, 

Columbus, Dallas, Denver, 

Detroit, El Paso, Foster City, 

Greenville, Houston, Huntsville, 

Indianapolis, Laredo, Los 

Angeles, Memphis, Miami, 

Milwaukee, Minneapolis, Montgomery, 

Morristown, Nashville, 

New Orleans, New York, 

Norfolk, Orlando, Philadelphia, 

Phoenix, Portland, Raleigh/ 

Durham, San Diego, San 

Francisco, Seattle, St. Louis, 

Tulsa, Washington DC 

Uruguay 

Montevideo 

Venezuela 

Caracas, Maiquetía/La Guaria, 

Maracaibo, Puerta Ordaz, 

Puerto Cabello, Puerto La Cruz, 

San Antonio del Táchira, 

Valencia 

Vietnam 

Hanoi, Ho Chi Minh City 



Publishing 

details 



Viaduktstrasse 42 

P.O. Box 

CH-4002 Basel 

Switzerland 

Phone +41 61 226 11 11 

Fax +41 61 226 11 01 

info@panalpina.com 

www.panalpina.com 

The Panalpina Annual Report 

is published in German and 

English. 

For additional copies please refer 

to the above address or send us 

an e-mail. 

An electronic version can be 

downloaded at: 

www.panalpina.com 

Editor 



Corporate Communications 

Concept/Design 

Wirz Corporate AG, Zurich 

Lithography 

Lithoteam, Allschwil/Basel 

Printed by 

Basler Druck+Verlag AG, bdv, 

Basel 

Picture credits 

Panalpina, getty images (p.27), 

imagepoint (p.27), 

zefa (p.1, 10/11, 16, 18/19, 21, 22, 

23, 24, 25, 27, 28, 29, 32, 33, 36, 

38/39, 92) 




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

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