DUFRY AG Listing of 4,218,750 Registered Shares

DUFRY AG
(a stock corporation under Swiss law)
Listing of 4,218,750 Registered Shares
This listing prospectus (the “Listing Prospectus”) relates to the listing (the “Listing”) of 4,218,750
registered shares with a nominal value of CHF 5 each (the “New Shares”) of Dufry AG (the “Company”, the
Company, together with its subsidiaries, “Dufry” or the “Dufry Group”), on the main segment of the SIX Swiss
Exchange, Zurich, Switzerland. The New Shares will be listed in addition to all other, already listed shares of
the Company (the “Existing Shares”, the Existing Shares of the Company together with the New Shares
collectively the “Shares”).
The New Shares will be listed and trading of the New Shares will commence on December 19, 2008, under
the existing SIX Swiss Exchange ticker symbol DUFN.
The New Shares have been issued on October 13, 2008 and have been used as part of the consideration for
the acquisition of Hudson Group Holdings, Inc. (“Hudson”), further described herein.
Application has been made for the New Shares to be accepted for clearance through SIX SIS AG (“SIS”).
No share certificates are issued and share certificates are not available for individual physical delivery.
Purchasing the �ew Shares involves risks. See “Risk Factors” beginning on page 12.
The New Shares have not been, and will not be, registered under the US Securities Act, and may not be
offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the US Securities Act. See “Transfer Restrictions.”
The date of this Listing Prospectus is December 19, 2008.

The Company assumes responsibility for the completeness and accuracy of this Listing Prospectus pursuant
to Section 4 of Scheme A of Annex I to the listing rules of the SIX Swiss Exchange. The Company confirms
that, to the best of its knowledge and belief, the information given in this Listing Prospectus is in all material
respects in accordance with the facts and does not omit anything likely to affect the import of such information
in any material respect. The information contained in this Listing Prospectus is accurate only as of the date of
this Listing Prospectus, regardless of the time of delivery of this Listing Prospectus or any sale of the New
Shares. In making investment decisions, investors must rely upon their own examination of the Company and
the terms of the Listing being made hereby, including the merits and risks.
Copies of this Listing Prospectus are available free of charge in Switzerland at the offices of Dufry AG,
Hardstrasse 95, 4052 Basel, Switzerland (tel. +41 61 266 42 38, fax +41 61 261 77 71, attention Andreas
Schneiter, Director of Treasury & Investor Relations; email: andreas.schneiter@dufry.com).
Information on the Company’s website, any website directly or indirectly linked to the Company or any
other website mentioned in this Listing Prospectus is not incorporated by reference into this Listing Prospectus
and investors should not rely on any such website in making their decision to invest in the New Shares.
The distribution of this Listing Prospectus and the sale of the New Shares is, in certain jurisdictions,
restricted by law. The Company requires persons into whose possession this Listing Prospectus comes to inform
themselves of and observe all such restrictions. The Company will not accept any legal responsibility for any
violation by any person, whether or not a prospective purchaser of New Shares, of any such restrictions. Any
failure to comply with any of those restrictions may constitute a violation of the securities laws of any such
jurisdiction. This Listing Prospectus may not be used for, or in connection with, any offer to, or solicitation by,
anyone in any jurisdiction or under any circumstances in which such offer or solicitation is not authorized or is
unlawful or to any person to whom it is unlawful to make such offer or solicitation. This Listing Prospectus does
not constitute an offer to sell or a solicitation of an offer to buy any New Shares in any jurisdiction to any person
to whom it is unlawful to make such an offer in such jurisdiction.
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TABLE OF CO�TE�TS
PAGE PAGE
UNITED STATES RELATED MATTERS ................. 1 INDUSTRY OVERVIEW ........................... 41
FORWARD-LOOKING STATEMENTS ................... 1 BUSINESS .............................................. 49
FINANCIAL AND CERTAIN OTHER DIRECTORS AND MANAGERS ................. 75
INFORMATION.............................................. 2 MAJOR SHAREHOLDERS AND RELATED
MARKET AND INDUSTRY INFORMATION ............ 2 PARTY TRANSACTIONS .................... 81
SUMMARY ......................................................... 3 THE COMPANY ...................................... 83
RISK FACTORS ................................................... 12 SHARE CAPITAL AND SHARES ............... 84
THE ACQUISITION OF HUDSON GROUP TAXATION ............................................. 91
HOLDINGS, INC............................................ 18 LISTING ................................................. 95
DIVIDENDS AND DIVIDEND POLICY ................... 20 MARKET INFORMATION ......................... 96
CAPITALIZATION ............................................... 21 TRANSFER RESTRICTIONS...................... 97
MANAGEMENT DISCUSSION AND ANALYSIS GENERAL INFORMATION ....................... 99
OF FINANCIAL CONDITION AND RESULTS
FINANCIAL STATEMENTS....................... F-1
OF OPERATIONS ........................................... 22
Investors should rely only on the information contained in this Listing Prospectus, to which the
Company has referred, or any amendments or supplements expressly made to it by the Company. �o
person is authorized to provide investors with information that is different. This Listing Prospectus may
only be used where it is legal to sell the �ew Shares. The information in this Listing Prospectus may only
be accurate on the date of this Listing Prospectus.
ii

U�ITED STATES RELATED MATTERS
The New Shares have not been, and will not be, registered under the US Securities Act or the laws of any
state of the United States and may not be offered or sold within the United States unless an exemption from the
registration requirements of the US Securities Act is available.
Each holder of Shares and each prospective shareholder of the issuer should seek advice from an
independent tax advisor about the tax consequences under its own particular circumstances of investing
in shares under the laws of Switzerland, the United States and its constituent jurisdictions and any other
jurisdiction where the purchaser may be subject to taxation.
The �ew Shares have not been approved or disapproved by the United States Securities and
Exchange Commission, any state securities commission in the United States or any other United States
regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of the
Listing of the �ew Shares or the accuracy or adequacy of this Listing Prospectus. Any representation to
the contrary is a criminal offense in the United States.
FORWARD-LOOKI�G STATEME�TS
This Listing Prospectus contains certain forward-looking statements, including, without limitation,
statements containing the words “believes”, “anticipates”, “expects” and words of similar import. Such forwardlooking
statements involve known and unknown risks, uncertainties and other factors, which may cause the
actual results of operations, financial condition, performance, or achievements of the Dufry Group, or industry
results, to be materially different from any future results, performance or achievements expressed or implied by
such forward-looking statements. Important factors that could cause the Dufry Group’s actual results,
performance or achievements to differ materially from those expressed in these forward-looking statements
include, among others:
changes in general economic conditions or disruptions, financial or otherwise, to the business of travel
providers, including airlines, railways and cruise lines, that affect the number of passengers traveling
through the travel facilities in which the Dufry Group operates;
management’s expectations and estimates concerning Dufry Group’s future financial performance and
financing plans and programs;
ability of the Dufry Group to implement its strategy, particularly its strategy of growth through
enhancing and expanding of existing facilities and seeking new concessions through tenders, private
negotiations or acquisition opportunities;
competition among participants in the travel retail market; and
changes in the taxation of goods or duty-free regulations in the markets in which the Dufry Group
operates.
Additional factors that could cause actual performance results or achievements to differ materially, include,
but are not limited to, those discussed in “Management Discussion and Analysis of Financial Condition and
Results of Operations,” “Risk Factors” and elsewhere in this Listing Prospectus.
Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forwardlooking
statements. The Company disclaims any obligation to update any such forward-looking statements to
reflect future events or developments.
1

FI�A�CIAL A�D CERTAI� OTHER I�FORMATIO�
Certain figures in this Listing Prospectus have been subject to rounding adjustments. Accordingly, amounts
shown as totals in tables or elsewhere may not be an arithmetic aggregation of the figures which precede them.
In addition, certain percentages presented in the tables in this Listing Prospectus reflect calculations based upon
the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that
would be derived if the relevant calculations were based upon the rounded numbers.
All references in this Listing Prospectus to “CHF” are to Swiss Francs, to “EUR” are to Euro and to “US$”
are to US dollars.
MARKET A�D I�DUSTRY I�FORMATIO�
This Listing Prospectus contains certain industry data concerning the travel retail sector. Unless otherwise
indicated, the statistical and other market information relating to the travel retail sector is based on statistics
prepared by Airports Council International; Generation AB; International Civil Aviation Organization and
Verdict.
Industry publications generally state that the information they contain has been obtained from sources
believed to be reliable, but the accuracy and completeness of such information is not guaranteed. The Company
has not independently verified and cannot give any assurances as to the accuracy of market data and industry
forecasts contained in this Listing Prospectus that were taken or derived from these industry publications.
2

SUMMARY
The following summary is qualified in its entirety by, and should be read in conjunction with, the detailed
information set out in this Listing Prospectus including the financial information consisting of the consolidated
and statutory financial statements.
Acquisition of Hudson
THE COMBI�ATIO� OF DUFRY A�D HUDSO�
On September 3, 2008, Dufry signed an agreement and plan of merger agreement (the “Merger
Agreement”) with, among others, Hudson, and the existing shareholders of Hudson, Advent-Hudson, LLC (the
majority shareholder of Hudson controlled by funds managed by Advent International Corporation) and Hudson
Media Inc. to acquire Hudson and all its subsidiaries (Hudson together with its subsidiaries the “Hudson
Group”). The acquisition of Hudson (the “Acquisition”) closed on October 15, 2008 and was structured as a
reverse triangular merger of two U.S.-subsidiaries of Dufry with Hudson essentially resulting in an exchange of
shares of Hudson for the New Shares and mandatory convertible notes (the “MCN”) of Dufry. As a result,
Hudson now is a wholly owned subsidiary of Dufry.
The consideration for the former non-Dufry shareholders of Hudson (Dufry already held indirectly via
Advent-Hudson, LLC, 11.2 percent in Hudson before the Acquisition; these non-Dufry shareholders of Hudson
collectively the “New Shareholders”) consisted of (i) 4,218,750 New Shares issued from the authorized capital
of Dufry and (ii) 932,704 zero-coupon CHF 85 MCN which converted into 932,704 registered shares issued
from Dufry’s conditional capital at no premium on December 9, 2008. The pre-emptive rights and the advance
subscription rights of the existing shareholders have been excluded. The applicable exchange ratio for the New
Shares and the MCN has been determined based on the 3-month weighted average share price of Dufry of CHF
85 and values 100 percent of Hudson Group’s equity at US$ 446 million. Dufry refinanced Hudson Group’s
existing debts of US$ 390 million. Dufry therefore has structured a new 5-year committed syndicated facility of
approximately CHF 1.25 billion, which has been fully underwritten by a group of five banks comprising Banco
Santander, BNP Paribas, ING, Raiffeisen Zentralbank and Royal Bank of Scotland. This facility is used to
refinance Hudson Group’s debt as well as Dufry’s existing bank debt.
Rationale for the Acquisition
Dufry has been successful with its strategy of growth in the past years increasing its turnover from
CHF 685,700,000 in 2003 to CHF 1,930,256,000 in 2007, its EBITDA (before other operational results) from
CHF 48,900,000 in 2003 to CHF 259,300,000 in 2007 and its net earnings from CHF (33,400,000) in 2003 to
CHF 126,040,000 in 2007. Dufry is aiming at delivering ongoing organic growth, but also believes that there is
considerable potential for external growth through new concessions and acquisitions in the travel retail industry,
too. The Acquisition of Hudson, the leading travel retailer in North America, will be part of this external
growth: The analysis of Hudson’s business model shows that the duty-paid segment also provides significant
business opportunities alongside the duty-free business. The operative performance of Hudson Group illustrates
that an adequate duty-paid convenience store concept focused on travel retail can generate substantial value.
With Hudson’s large, high-quality concession portfolio and robust growth rates with high margins similar to
Dufry, Hudson is well suited to an international airport retailer such as Dufry. Hudson’s duty-paid business
model is highly complementary to Dufry’s predominantly duty-free activities. The implementation of Hudson’s
best-in-class concept on an international scale in many of Dufry’s international locations should create a further
revenue stream based on the existing duty-free franchise. In addition, the acquisition leads to a further
diversification of the revenue streams and thus to a more balanced portfolio exposure, as a new step on a
strategy already followed in the last 4 years, when Dufry went from 25 to 40 countries. Finally, the Acquisition
of Hudson will give Dufry an extended footprint in the US market and also give rise to substantial cost
optimization.
With the support of Hudson’s current management team Dufry intends to roll out Hudson’s business model
internationally over the next three to four years. Primarily, Dufry will focus in a first phase on airports where it
already operates similar duty-paid concepts or where it already has a significant presence in duty-free retailing,
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hence, leveraging its infrastructure and organization. On a second phase it intends to combine the duty free and
the duty paid concepts to further expand in new markets the travel retail, accessing to both international and
domestic passengers. Dufry expects to realize annual revenue and cost synergies from the acquisition in the
current scope of the business of approximately CHF 20 million within two years.
General
DUFRY
Dufry is a leading global travel retailer with operations in 39 countries (excluding Hudson) on four
continents combining strong positions in emerging markets with prime operations in developed markets.
The Dufry Group’s travel retail operations consist of a variety of retail concepts focusing on the specific
needs of travelers, including:
General travel retail outlets listing a wide range of products such as wines and spirits, tobacco,
perfumes and cosmetics, confectionary and other foods, and fashion items;
Brand boutiques featuring products from internationally recognized brand names;
Specialized shops listing a variety of different brands of a single type of product, such as electronics,
jewelry or regional goods;
Convenience stores offering convenience products for travelers; and
Food and Beverage shops.
Dufry’s outlets are located in a variety of travel retail settings. As of June 30, 2008 Dufry (excluding
Hudson) operated 446 shops with a total sales area of 90,300 square meters, including 323 shops in airports, 67
shops operating on cruise lines, ferries and at seaports, 16 shops in railway stations and 60 shops at downtown
tourist and other locations.
Dufry traces its origins back to 1865, when the Weitnauer family opened its first tobacco shop in Basel,
Switzerland. In 1948, Weitnauer became a duty-free distributor and four years later opened its first duty-free
shop with direct sales to continental European customers at Le Bourget Airport in Paris. Subsequent tax free
operations were launched at Basel-Mulhouse Airport in 1962 and at Linate Airport in Milan in 1979. In 2003,
the Company changed its name and adopted the Dufry brand.
In March 2004, a consortium of investors led by funds managed by private equity firm Advent International
Corporation, acting through the Company, acquired a 75 percent interest in Dufry’s travel retail business.
Ownership of Dufry’s vending machine business, Restomat, and its wholesale services business, Weitnauer
Retail Services, was retained by Dufry’s former shareholders. In July 2005, the consortium acquired the
remaining 25 percent of Dufry’s travel retail business. Following the 2004 acquisition, a new chief executive
officer was appointed, a new organizational structure was put in place and the management team was
supplemented by a number of new members. On December 6, 2005 Dufry became a public company and listed
its shares on the SIX Swiss Exchange. On December 16, 2006 Dufry launched the initial public offering of its
South American subsidiary Dufry South America Ltd (“DSA”), a Bermudan company, listing DSA’s shares on
the Luxembourg Stock Exchange with Brazilian Depositary Receipts (“BDR’s”) listed on the São Paulo Stock
Exchange (“BOVESPA”). Dufry still holds 51 percent in DSA today.
Funds controlled by Advent International Corporation subsequently to the initial public offering of Dufry
on SIX Swiss Exchange reduced their shareholdings in Dufry leading to a free float of Dufry’s shares of 63.3
percent before the Acquisition of Hudson was effected. In the course of the Acquisition, the funds controlled by
Advent International Corporation increased their shareholdings again to currently 47.0 percent. See “Major
Shareholders and Related Party Transactions—Background to the Current Ownership Structure.”
4

Dufry (excluding Hudson) generated revenue of CHF 1,930.3 million for the year ended December 31,
2007 and CHF 934.8 million for the six months ended June 30, 2008. As of June 30, 2008, Dufry (excluding
Hudson) had 7,180 employees.
Key Strengths and Strategy
Dufry’s Management (“Management”) believes that Dufry’s position as a leading global travel retailer is
based on the following key strengths:
High-quality, diversified concession portfolio;
Diverse operations in 39 countries (excluding Hudson) across Europe, Africa, Eurasia, North America
and the Caribbean and South America combining high growth emerging markets and prime operations
in developed markets;
Extensive operations that provide benefits of scale;
Well-developed reputation as a quality operator; and
Experienced management team and multinational workforce.
By utilizing its key strengths, Dufry will seek to enhance further its position by implementing the following
business strategies:
General
Combine global reach with extensive local market knowledge;
Operate as a “true” retailer focused on customer needs;
Position Dufry as preferred partner for long-term business relationships;
Enhance central functions to improve profitability; and
Focus on profitable growth through enhancing and expanding certain existing facilities while seeking
new concessions through tender or private negotiation or by acquisition opportunities in both the dutypaid
and duty-free segment that may arise from industry consolidation, including increasing the Dufry
Group’s holding in certain non-wholly owned operating subsidiaries.
HUDSO�
Hudson is the leading travel retailer in North America with operations in the United States and Canada,
focused on duty-paid stores at airports.
The Hudson Group’s travel retail operations consist of a variety of retail concepts focusing on the specific
needs of travelers, including the following brands:
Hudson �ews, North America’s only news, gift and convenience brand, with a brand recognition ratio
of 60 percent;
Hudson Booksellers, the largest book retailer in the North American travel industry, offering a very
comprehensive selection of books;
Kids works, stores offering toys, games, books and apparel for children;
$10 | $15 Boutiques, offering extravagant looking and fashion accessories at value prices;
5

Kitchen, stores featuring regional food and food related items that reflect local culinary themes; and
Discover, theme shops showcasing local gifts and artwork in beautiful stores designed to reflect the
local indigenous market.
Euro Café, providing freshly roasted premium coffee blends, gourmet teas and local baked goods right
alongside Hudson’s widest selection of magazines, newspapers and books.
Hudson operates 550 news stores, convenience stores, bookstores, cafes and specialty retail concessions
with a total sales area of 47,241 square meters in about 70 airports and transportation terminals across the
United States and Canada. More than 400 of its points of sales operate under the “Hudson News” brand. Hudson
is the fifth largest retailer of magazines worldwide.
Hudson traces its origins back to Hudson News, a newspaper distributorship for the region of Hudson
County, New Jersey founded by Isaac Cohen in 1926. The business expanded and became one of the largest
magazine distributors in the United States. In the early 1980s, Hudson Group opened retail newsstands in
airports and commuter terminals as an offshoot of the core business, beginning at New York’s LaGuardia
Airport and Grand Central Station and soon expanding in and around New York. In those days, newsstands were
typically crammed with high-margin gifts and souvenir items, and very few periodicals. Hudson News
redesigned the newsstand concept into stores that were news first, gift second. This concept was broadened by
selling books and customer convenience products that travelers really needed.
In the mid 1990s, Hudson Group became a full service, duty paid travel retailer offering news, convenience,
books and a variety of proprietary and licensed specialty retail concepts. In the late 1990s, the company started
with the award-winning Euro Café concept, combining the need of the traveler for reading material and
premium coffee. Today, the company operates 22 Euro Cafés. In 1997, Hudson News opened its first gift-only
store in the prestigious United Nations building in New York City. In December 2003, Hudson acquired the
North American retailing business of WH Smith, adding 23 airport locations and 155 stores to its portfolio. In
late 2006 and early 2007, Hudson won significant contracts from its primary competitor Paradies for the
Nashville and Fort Lauderdale airports. In March 2008, funds managed by Advent International Corporation
acquired 68.9 percent of the share capital of Hudson. Dufry acquired 11.2 percent of the shares and 19.9 percent
remained with the initial shareholders.
Hudson generated revenue of US$ 629.9 million for the year ended December 30, 2007 and US$ 317.9
million for the six months ended June 29, 2008. As of June 30, 2008, Hudson had 4,408 employees.
Key Strengths and Strategy
Management believes that Hudson’s position as the leading travel retailer of North America is based on the
following key strengths:
High success rate at retaining contracts of over 90 percent;
Market leader in transportation retail throughout North America with an estimated market share
between 30 and 40 percent;
High qualified and experienced management team;
Consistent improvement of the retail performance of airport after displacing a competitor;
Well-developed reputation as a quality operator; and
Exclusive licensing agreements with key brands such as Papyrus, Godiva, Flexplay, iGO, Blackberry
and many others.
By utilizing its key strengths, Hudson will seek to enhance further its position by implementing the
following business strategies:
Combine global reach of Dufry with extensive knowledge of the convenience store concept;
6

Position Hudson as preferred partner for long-term business relationships; and
Expand into new retail concepts in the travel industry on the basis of its broad knowledge of the US
market.
7

THE LISTI�G
The New Shares ............................................................The 4,218,750 New Shares are in registered form with a
nominal value of CHF 5 each. All of the New Shares are
fully paid and non-assessable and rank pari passu in all
respects with each other and with the other already listed
Existing Shares of the Company.
Listing and First Trading Day of the New
Shares ...........................................................................December 19, 2008
Listing Agent ................................................................Homburger AG, Zurich
Share Delivery Agent ...................................................Credit Suisse AG, Zurich
Dividends and Dividend Policy ....................................The New Shares are entitled to receive dividends
declared, if any, for the business year ending on
December 31, 2008. All Shares will rank pari passu.
Amendments or Changes ..............................................Any notices containing or announcing amendments or
changes to the terms of the Listing or to this Listing
Prospectus will be announced through the electronic
media and, if required, published in German and French
in the �eue Zürcher Zeitung and in Le Temps,
respectively.
Transfer Restrictions .....................................................The New Shares are subject to certain restrictions on
transfer as described in “Transfer Restrictions.”
Clearance ......................................................................The New Shares are accepted for clearance through SIS.
Form of the Shares ........................................................No share certificates will be issued and, thus, share
certificates will not be available for individual physical
delivery. Delivery of Shares will be made in book-entry
form only (aufgehobener Titeldruck), through the
facilities of SIS.
Own Existing Shares ....................................................As of the date of this Listing Prospectus the Company
owns 106,750 Shares in the Company.
Total Outstanding Shares ..............................................As of the date of this Listing Prospectus, the Company
has 19,213,954 outstanding Shares.
Voting Rights ................................................................Each Share carries one vote. Regarding transfers of
Shares and restrictions see “Share Capital and Shares—
Transfer of Shares” and “Transfer Restrictions.”
Risk Factors ................................................................ For a discussion of certain considerations that should be
taken into account in deciding whether or not to purchase
New Shares in the Listing, see “Risk Factors.”
Swiss Taxation ..............................................................Any dividends paid on the Shares will be subject to
Swiss withholding tax. See “Taxation—Swiss Tax
Considerations.”
SIX Swiss Exchange Ticker Symbol ............................DUFN
Swiss Security Number (Valorennummer) ...................2340545
8

International Securities Identification Number
(ISIN) ....................................................................CH0023405456
Common Code ..............................................................023609983
9

SELECTED FI�A�CIAL I�FORMATIO� OF DUFRY
(Before the Acquisition)
The following table presents certain summarized consolidated financial information of Dufry (before the
Acquisition) as of and for the years ended December 31, 2007, 2006 and 2005 and as of and for the six months
ended June 30, 2008 and 2007. This information has been derived from und should be read in conjunction with
the audited consolidated and statutory financial statements of Dufry as of and for each of the years ended
December 31, 2007, 2006 and 2005 and the unaudited consolidated financial statements of Dufry as of and for
the six months ended June 30, 2008 and 2007, all prepared in accordance with IFRS and included elsewhere in
this Listing Prospectus, and with “Management’s Discussion and Analysis of Financial Condition and Results of
Operations”.
For the six months ended
June 30, (unaudited)
10
For the year ended
December 31,
2008 2007 2007 2006 2005
(CHF in millions except EPS in CHF)
I�COME STATEME�T DATA
Turnover ................................................................................................
934.8 896.9 1,930.3 1,436.3 949.8
Gross profit ................................................................ 507.8 470.3 1,028.0 744.4 472.2
EBITDA (before other operational results) (1) ................................ 121.6 105.9 259.3 160.5 100.1
EBIT ................................................................................................ 78.9 83.8 192.3 169.2 71.5
EBT ................................................................................................ 72.7 70.2 164.4 138.5 66.1
Minority interest ................................................................ 27.5 21.4 51.1 16.9 11.1
Net earnings ................................................................ 55.5 57.0 126.0 124.6 52.7
EPS (2) ................................................................................................ 1.99 2.53 5.35 7.66 3.98
CASH FLOW DATA
Cash generated from operating activities before
working capital changes ................................................................ 110.5 105.7 257.2 157.2 99.0
Net cash from / (used in) operating activities ................................ 33.3 48.4 207.0 123.8 56.9
Net cash from / (used in) investing activities................................ (80.9) 37.4 4.0 (539.8) (211.3)
Net cash from / (used in) financing activities ................................ 73.4 117.1 174.3 479.3 168.2
(CHF in millions)
BALA�CE SHEET DATA
Current assets ................................................................ 641.5 557.9 557.9 494.4 327.0
Non-current assets ................................................................ 1,181.3 1,218.5 1,218.5 1,288.1 504.1
Total assets ................................................................ 1,822.7 1,776.4 1,776.4 1,782.5 831.1
Current liabilities ................................................................ 482.3 363.5 363.5 353.1 323.4
Non-current liabilities ................................................................ 632.9 675.1 675.1 774.3 61.7
Minority Interest ................................................................ 232.0 230.1 230.1 173.0 59.7
Total liabilities and equity ................................................................
1,822.7 1,776.4 1,776.4 1,782.5 831.1
(1) EBITDA (before other operational results) refers to earnings before interest, taxes, depreciation and amortization and other operational
results. EBITDA (before other operational results) is not a measure of operating performance calculated in accordance with IFRS and should
not be considered as a substitute for operating profit, net income, cash flow from operations or other profit or loss or cash flow data
determined in accordance with IFRS. EBITDA is included here as a supplemental item, because Management believes that this measure,
when considered in connection with cash flows from operating, investing and financing activities, may provide useful information to
potential investors since this measure shows the performance of the business excluding the effects of one-off items.
(2) Basic earnings per share attributable to equity holders of the parent, without dilution effect by outstanding share options. Diluted earnings
per share: CHF 1.98 (first half year 2008), CHF 2.53 (first half year 2007), CHF 3.98 (2005), CHF 7.61 (2006), CHF 5.27 (2007). The
calculation of earnings per share for all periods presented has been adjusted to include the impact of the share split as of November 17,
2005.

SELECTED FI�A�CIAL I�FORMATIO� OF HUDSO�
The following table presents certain summarized consolidated financial information of Hudson as of and for
the fifty-two weeks ended December 30, 2007 and December 31, 2006 and as of and for the twenty-six weeks
ended June 29, 2008 and July 1, 2007. This information has been derived from und should be read in
conjunction with the audited consolidated financial statements of Hudson as of and for the fifty-two weeks
ended December 30, 2007 and December 31, 2006 and the unaudited consolidated financial statements of
Hudson as of and for the twenty-six weeks ended June 29, 2008 and July 1, 2007, all prepared in accordance
with US GAAP and included elsewhere in this Listing Prospectus, and with “Management’s Discussion and
Analysis of Financial Condition and Results of Operations”.
For the twenty-six weeks ended
June 29 / July 1, (unaudited)
11
For the fifty-two weeks ended
December 30 / 31,
2008 2007 2007 2006
(US$ in millions)
I�COME STATEME�T DATA
Turnover ................................................................................................
319.7 305.4 629.9 536.8
Gross profit ................................................................ 185.0 172.6 365.4 307.1
EBITDA ................................................................................................
32.5 36.0 51.2 60.3
EBIT ................................................................................................ 17.1 22.3 25.2 34.8
EBT ................................................................................................ 8.6 21.0 23.3 31.7
Minority interest ................................................................3.6 3.1 7.0 5.2
Net earnings ................................................................ 4.7 17.2 15.7 25.4
CASH FLOW DATA
Cash generated from operating activities before
working capital changes ................................................................ 24.8 34.9 50.4 56.6
Net cash from / (used in) operating activities ................................ (13.6) (12.6) 37.0 6.9
Net cash from / (used in) used in investing
activities ................................................................ (702.2) (4.8) (37.1) (33.9)
Net cash from / (used in) financing activities ................................ 687.3 (9.6) (41.6) (14.8)
(US$ in millions)
BALA�CE SHEET DATA
Current assets ................................................................ 106.6 111.4 113.0 113.1
Non-current assets ................................................................ 825.1 122.0 126.7 121.8
Total assets ................................................................ 931.7 233.4 239.8 234.9
Current liabilities ................................................................ 77.4 51.4 95.8 69.1
Non-current liabilities ................................................................ 389.2 59.8 63.3 34.1
Minority Interest ................................................................17.6 15.4 16.9 14.3
Total liabilities and equity ................................................................ 931.7 233.4 239.8 234.9

RISK FACTORS
Prior to making a decision to invest in the �ew Shares, prospective investors should carefully consider all
of the information in this Listing Prospectus, including the following specific investment considerations. Certain
other investment considerations relating to the business of Dufry are discussed under “Business” and
“Management Discussion and Analysis of Financial Condition and Results of Operations.”
Risks related to the Industry
Events outside the control of Dufry that cause a reduction in airline and cruise line passenger traffic,
including but not limited to terrorist attacks and the current economic downturn, could adversely affect its
business.
Dufry’s business is mainly dependent upon sales to air travelers. The occurrence of any one of a number of
events outside its control such as terrorist attacks, hurricanes, natural disasters and accidents may lead to a
reduction in the number of air travelers on a global, regional or local level. For example, the global uncertainty
caused by the outbreak of war in the Persian Gulf in 1991 led to a significant fall in the numbers of air travelers
globally. The terrorist attacks on September 11, 2001 in the United States and the resultant anxiety about air
travel resulted in a significant global decline in airline passenger numbers. At a regional level, the outbreak of
the SARS virus in South-East Asia at the end of 2002 and the Indian Ocean Tsunami of December 2004 led to a
decline in travel to and within Asia and, more locally, the bombing at the Red Sea resort of Sharm El Sheikh,
Egypt in July of 2005 reduced travel to that area, just to list some examples. Also, the current economic
downturn may lead to a significant decrease in airline passenger numbers. Furthermore, the high or eventually
rising oil price may inhibit growth due to higher ticket prices caused by fuel surcharges and due to increased
cost of living in general restricting the budget of the customers. Any future event of a similar nature, even if not
directly affecting the airline industry may lead to a significant reduction in the number of air travelers. Further,
any disruption to or suspension of services provided by airlines, as a result of financial difficulties, labor
disputes, construction work, increased security or otherwise, could negatively affect the number of air
passengers. Such a reduction in airline passenger numbers will result in a decrease in Dufry’s sales and may
have a materially adverse impact on its business, financial condition and results of operations.
These events that could cause a reduction in airline passenger traffic could also have a material negative
impact on Dufry’s operations that serve passengers using other forms of travel, such as shops on cruise lines,
ferries, at seaports, train stations, downtown tourist locations and others.
General economic and market conditions may adversely affect Dufry’s results.
Dufry operates in, and its customers come from, a large number of economies around the world, such as
Italy, France, Switzerland, Tunisia, Singapore, Mexico, Russia, Brazil and the United States. Since Dufry’s
success is dependent on consumer spending, its business may be adversely affected by factors such as a
downturn in such economies, a decline in consumer confidence, an increase in interest rates, inflation or
deflation and consumer debt levels. In particular, the current worldwide economic downturn may have a
material adverse affect on Dufry’s business, financial condition and result of operations.
Competition for travel retail concessions may lead to more onerous terms for retailers.
As a result of competition among travel retailers to obtain or maintain retail concessions, airport authorities
and other landlords have increasingly been able to demand more favorable concession terms. In addition to
shorter terms, concession agreements increasingly provide for minimum annual guaranteed amounts irrespective
of either the number of passengers or the amount of sales per passenger. Currently, the majority of Dufry’s
concessions provide for a minimum annual guaranteed amount that is either fixed, based upon the number of
passengers using an airport or other travel channel, or based upon current budgets or past results. If passenger
numbers are lower than expected or if there is a decline in the sales per passenger at these facilities, Dufry’s
profitability may be materially adversely affected.
The market to obtain concessions is highly competitive.
Dufry competes with other travel retailers at global, regional and local levels in obtaining and maintaining
concessions at airports and for other travel facilities such as on board cruise lines and airlines and at railway
stations. Some of its competitors have strong financial support or solid relationships with airport authorities
12

which benefit those competitors in competing for concessions. There is no guarantee that Dufry will be able to
renew its existing concessions or that, if it does renew a concession, it will be on similar payment terms. In
addition, the failure to obtain or renew a concession necessarily means for Dufry, that it will not be able to enter
or continue operating in the market represented by such concession. If it were to fail to renew major concessions
or fail to obtain further concessions, its business, financial condition and results of operations could be
materially adversely affected.
Risks related to Dufry’s business
Dufry may not be able to execute its growth strategy effectively or to integrate successfully any new
concessions or future acquisitions into its business.
Dufry’s principal strategy is to continue to grow by enhancing and expanding its existing facilities and by
seeking new concessions through tenders or private negotiations or through acquisition opportunities. In this
regard, its future growth will depend upon a number of factors, some of which may not be within its control,
such as the timing of any concession or acquisition opportunity, its ability to identify any such opportunities,
structure a competitive proposal, obtain required financing or consummate an offer. As a result, there can be no
assurance that this strategy will be successful.
In addition, Dufry may encounter difficulties integrating expanded or new concessions, or any acquisitions
into its existing operations. Such expansions, new concessions or acquisitions may not achieve anticipated
revenue and earnings growth or synergies and cost savings. A failure to grow successfully may materially
adversely affect Dufry’s business, financial condition and results of operations.
Dufry may not be able to predict accurately or fulfill customer preferences or demand.
Dufry derives an important amount of its revenue from the sale of fashion-related, cosmetic and luxury
products, which are subject to rapidly changing customer tastes. The availability of new products and changes in
customer preferences have made it more difficult to predict sales demand for these types of products accurately.
Dufry’s success depends in part on its ability to effectively predict and respond to quickly changing consumer
demands and preferences, and to translate market trends into appropriate merchandise listings. Additionally, due
to Dufry’s limited sales space relative to other retailers, the selection of salable merchandise is an important
factor in revenue generation. There can be no assurance that Dufry’s product orders will match actual demand.
If Dufry is unable to successfully predict or respond to sales demand or to changing styles or trends or
experience inventory shortfalls on popular merchandise, Dufry’s revenue will be lower, which could have a
material adverse effect on the business, financial condition and results of operations.
Dufry’s success depends on its ability to attract and retain qualified personnel.
The success of Dufry depends, to a significant extent, on the performance and expertise of top management
and other key employees. There is competition for skilled, experienced personnel in the fields in which Dufry
operates and, as a result, the retention of such personnel cannot be guaranteed. Dufry’s continuing ability to
recruit and retain skilled personnel, especially in management functions both in Switzerland and internationally,
will be an important element of the future success of Dufry. The loss of top management or any other key
employees or the failure to attract new highly qualified employees could have a material adverse effect on its
business, financial condition and results of operations.
Dufry is dependent on its local partners.
The Company’s global retail operations are carried on through approximately 115 subsidiaries or Joint
Ventures in 40 countries of operation. The Company’s local partners maintain ownership interests in
approximately one-third of these subsidiaries or Joint Ventures, some of which operate major concessions. The
Company’s participation in each of these operating companies differs from market to market. The Company’s
ability to withdraw funds, including dividends, from its participation in, and to exercise management control
over, such subsidiaries may depend upon the consent of the Company’s local partners. While the precise terms
of each relationship vary, disagreements with its local partners may affect the business, financial condition and
results of operations of Dufry.
13

Dufry’s shops are operated under concessions agreements that are subject to revocation and the loss of
concessions could negatively affect its revenues and its business.
Dufry’s travel retail activities are mainly operated pursuant to non-exclusive concessions granted by airport
authorities. The concessions may be terminated prior to the end of the original expiration date upon
expropriation or annulment by the respective authorities or forfeiture by the company. Forfeiture may be
declared if the concessionaire fails to fulfil the terms and conditions set forth in the concession agreement as
well as applicable legal and regulatory obligations and does not require prior indemnity payment by the
authorities. Annulment may be declared by the authorities in case the act granting the concession did not comply
with the appropriate legal requirements.
The concessions may also be terminated early by airport authorities in certain circumstances including,
among others:
assignment, transfer or sub-lease to third parties, in whole or in part, of the rights or obligations
provided for in the relevant agreement;
failure to comply with any of the provisions of the concession agreement;
use of the concession area for any purpose other than the object of the agreement;
entering into an agreement with a third party with respect to the concession area or services to be
explored without applicable airport authorities’ prior approval;
making of any modification in the facilities without applicable airport authorities’ prior approval;
default on the payment of the monthly fees for a period provided for in the relevant agreement; or
not providing the services in an adequate quality level or the failure to obtain the necessary equipment
for the satisfactory rendering of such services.
Early termination of Dufry’s concession agreements would have a material adverse effect on Dufry’s
business, results of operations and financial condition, as well as on the market price for Dufry’s shares.
Taxation of goods policies in countries where Dufry operates may change.
A substantial part of Dufry’s revenues is derived from its sale of duty-free products, such as perfumes,
spirits and tobacco. Governmental authorities in various countries in which Dufry operates may alter or
eliminate the duty-free status of certain products or otherwise change importation laws. For example, in 1999
the structure of the duty-free market in the European Union was significantly altered and the sale of duty-free
products to passengers traveling between member states of the European Union was no longer possible, except
for certain exempt zones. Further, sales and excise taxes on products sold on the ‘High Street’ may be lowered
in the future, partly removing Dufry’s competitive advantage with respect to duty-free product pricing. If Dufry
loses the ability to sell duty-free products generally or in any of its major duty-free markets without
experiencing a corresponding increase in demand for duty-paid products or if Dufry loses market share to ‘High
Street’ retailers as a result of a reduction in sales and excise taxes, Dufry’s revenues may decrease significantly
and its business, financial condition and results of operations may be materially adversely affected.
Restrictions on the duty-free sale of tobacco products and on smoking in general may affect Dufry’s
tobacco product sales.
The duty-free sale of tobacco products represented ten percent of Dufry’s sales and constituted its fifth
largest product category from January to June 2008. As part of the campaign to highlight the negative effects of
smoking, international health organizations and the anti-smoking lobby continue to seek restrictions on the dutyfree
sale of tobacco products. More generally, an increasing number of national and local governments have
prohibited, or are proposing to prohibit, smoking in public places. If Dufry were to lose its ability to sell dutyfree
tobacco products in its major markets or the increasing number of smoking prohibitions caused a reduction
in its sales of tobacco products, Dufry’s business, financial condition and results of operations could be
materially adversely affected.
14

The retail business is highly competitive.
Dufry also competes to attract retail customers. As Dufry’s sales of non-traditional duty-free products
increases, Dufry must compete with other, non-airport retailers, such as ‘High Street’ retailers. Some of Dufry’s
retail competitors may have greater financial resources, greater purchasing economies of scale and/or lower cost
bases, any of which may give them a competitive advantage over Dufry. If Dufry were to lose market share to
competitors, its revenues would be reduced and its business, financial condition and results of operations
adversely affected. See “Business—Competition.”
Dufry relies on a limited number of suppliers.
Dufry relies on a small number of suppliers for the majority of its purchases in each major product
category. Future consolidation may reduce Dufry’s number of suppliers even further. As a result, Dufry’s
suppliers may have increased bargaining power and Dufry may be required to accept less favorable purchasing
terms. In addition, in the event of a dispute with any supplier, the delivery of a significant amount of
merchandise may be delayed or cancelled, or the Company may be forced to purchase merchandise from other
suppliers on less favorable terms. Such events could cause revenues to fall and costs to increase, adversely
affecting the Company’s business, financial condition and results of operations.
Dufry has operations in emerging markets which exposes it to risks inherent to such less developed
markets.
Dufry has operations in a number of emerging markets. Business climates in these countries expose the
Dufry Group to a variety of greater political, economic, legal and social uncertainties than countries with more
developed institutional structures, and the risk of loss resulting from changes in law, economic and social
upheaval and other factors may be substantial. Among the more significant risks of operating and investing in
emerging market countries are those arising from interruption of operations due to political or social instability,
the establishment or enforcement of foreign exchange restrictions, which could effectively prevent Dufry from
repatriating profits, liquidating assets or withdrawing from one or more of these countries. Furthermore, changes
in tax regulations or enforcement mechanisms could substantially reduce or eliminate any revenues and profits
derived from operations in these countries and reduce significantly the value of assets related to such operations.
Another aspect of certain emerging markets is the inadequacy of the legal system and law enforcement
mechanism, which leaves Dufry exposed to the possibility of considerable loss as a result of abusive practices
by competitors, parties with which it contracts or others.
Exchange rate fluctuations may have a material negative effect on Dufry’s business, financial condition
and results of operations.
Dufry faces two types of exchange rate risk. Firstly, it faces transaction exposure: a certain amount of its
sales are denominated in the currencies of the countries in which it operates, while its related costs and expenses
are primarily denominated in US dollars or Euro, and vice versa. Therefore, significant movements in currency
rates may have an adverse effect on its business, financial condition and results of operations. In Brazil, for
instance the product pricing is done in US dollars. A depreciation of the Brazilian real leads to a diminished
purchase power of local customers, whereas an appreciation strengthens the Brazilian’s purchase power. Some
fix costs are denominated in Brazilian reais. Thus, any fluctuations in the value of the Brazilian real versus the
US dollar can adversely affect Dufry’s Brazilian business, its financial condition and results of operations.
The second type of risk is the translation exposure, which arises as a result of Dufry’s reporting in Swiss
Francs, while a major part of its assets and liabilities are denominated in currencies other than the Swiss Franc.
E.g., in the first half of 2008, Dufry’s turnover increased by 15.3 percent in comparison to the first half of 2007
measured on constant foreign exchange rates, but the negative foreign exchange accounting effects of 11.1
percent mainly related to the translation of the weakening US dollar against the Swiss Franc resulted in a
turnover growth of only 4.2 percent relative to the first six months 2007. Therefore, increases and decreases in
the value of the Swiss Franc against other currencies may affect operating and financial results and cash flows,
and the value of its assets and liabilities as reported in its consolidated financial statements.
15

Risks particularly related to the business of the Hudson
Consents to the Acquisition required under some of Hudson’s Agreements may not be obtained.
A number of the lease and concession agreements of Hudson require consents of the landlord to the
Acquisition. Other lease and concession agreements are terminable at will by the landlord. In the aggregate, 52
of Hudson’s 143 leases are subject to either consents to the Acquisition or terminable at will. Although as of the
date of this Listing Prospectus, most of the consents have been obtained and none of the agreements have been
terminated, some consents are still outstanding amounting and additional agreements may be terminated. Failure
to obtain the consents and additional terminations may adversely affect Hudson’s business, financial condition
and result of operations.
Hudson’s focus on the US market leads to a risk concentration and may adversely affect Hudson’s results.
Hudson mainly operates in, and its customers come to a large extent from, the United States. Since
Hudson’s success is dependent on consumer spending, Hudson’s business may be adversely affected by factors
such as a economical downturn, a decline in consumer confidence, an increase in interest rates, inflation or
deflation and consumer debt levels. As the actual economic and financial crisis affects the United States to a
large extent and Hudson is not diversified into other markets, the affect on Hudson’s business, financial
condition and result of operations may be even more material.
Loss of concessions of top locations may adversely affect Hudson’s results.
The sales of the top 20 locations of Hudson represent approximately two third of Hudson’s total sales. Since
Hudson’s depends on concessions or leases to operate shops at airports or train stations, losses of one or several
of these concessions or leases may have a material adverse affect on Hudson’s business, financial condition and
result of operations. As set out under “—Risks related to the business of Hudson—Consents to the Acquisition
required under some of Hudson’s Agreements may not be obtained”, a number of the lease and concession
agreements of Hudson require consents of the landlord to the Acquisition and some consents are still
outstanding.
Abolishment or attenuation of restrictions regarding snacks, beverages and sundries onboard may affect
Hudson’s snacks, beverages and sundries sales.
The key drivers of growth by product line from the first quarter of 2007 to the first quarter of 2008 were the
sale of candy and snacks, sundries (including health and beauty aids, travel products, electronics items, and sale
of accessories) and food and beverage. This growth was due partially to additional time spent in the airport by
passengers as a result of increased airport restrictions. The rule in US airports that outside food and beverages
are not allowed through security has helped to bolster sales of snacks and beverages. Sundries additionally have
been impacted as passengers were forced to discard toiletries that exceeded regulation size. The abolishment or
attenuation of these restrictions may affect Hudson’s snacks, beverages and sundries sales.
Further Risks
Certain shareholders, including funds managed by Advent International Corporation, hold a significant
stake in the Company and, consequently, will be able to significantly influence the outcome of any
shareholder vote.
Funds managed by Advent International Corporation control Travel Retail Investment SCA and Global
Retail Group S.à r.l. which together hold 47.03 percent of the Company’s outstanding shares. See “Major
Shareholders and Related Party Transactions.”
As a result, funds managed by Advent International Corporation can exercise significant influence over
certain corporate decisions relating to the Company, including the election of the board of directors, the
approval of annual financial statements, the declaration of dividends and the determination of other matters to be
decided by the shareholders and could thereby also influence other aspects of the Dufry Group’s management
strategy and operations. Such influence may be heightened in respect of matters requiring the approval of twothirds
of the shares represented at a shareholders’ meeting. See “Share Capital and Shares.”
Further, funds managed by Advent International Corporation are generally active in the travel retail sector
and the Dufry Group may be required, in the pursuit of its strategy, to enter into commercial or transactional
16

elationships with entities in which funds managed by Advent International Corporation may have an ownership
interest. This has been the case in connection with the Acquisition, as Hudson as been ultimately controlled by
Advent International Corporation. See “Acquisition of Hudson Group Holdings, Inc.”. Another example is the
Company’s wholly-owned subsidiary, Dufry Mexico SA de CV, which operates shops at Mexico City’s Benito
Juárez Airport under agreements with Inmobiliaria Fumisa, SA de CV. Funds managed by Advent International
Corporation control Inmobiliaria Fumisa, SA de CV. Furthermore, funds controlled by Advent International
Corporation acquired Aeropuertos Dominicanos Siglo XXI, S.A. (“AERODOM”), the leading airport group in
the Dominican Republic, in September 2008. The Company’s wholly-owned subsidiary Inversiones Tunc, SA
operates shops at the six airports of the Dominican Republic under agreements with AERODOM. See “Major
Shareholders and Related Party Transactions.” The Dufry Group may also find itself in conflict with other funds
managed by Advent International Corporation, to the extent that the Dufry Group pursues similar acquisitions,
partnerships or other business opportunities with other funds managed by Advent International Corporation in
the travel retail sector.
Sales of a substantial number of Shares following the Listing could adversely affect the market price for
the Shares. Further, such sales, to the extent they are executed by a selling shareholder, will not raise
capital for the Company.
Sales of a substantial number of Shares in the public market by the New Shareholders following the Listing
could adversely affect the prevailing market price for the Shares. There is no lock-up or similar agreement in
place with the New Shareholders.
The market price of the shares of DSA may have a considerable effect on the market price of Dufry’s
Shares.
As further described herein (see “Business—Operations—Description of Operations by Segment—South
America”), Dufry holds 51 percent in DSA, a Bermudan company listed at the Luxembourg Stock Exchange
with Brazilian Depositary Receipts listed on the BOVESPA. Given this significant shareholding in DSA by
Dufry, DSA’s share price could have a considerable effect on the market price of Dufry’s Shares. In particular, a
decrease of DSA’s share price could negatively affect the market price of Dufry’s Shares.
General Stock Market Risk Factors.
The market price of Dufry’s Shares may be highly volatile, and, in particular, decrease abruptly. Factors
affecting the share price include, but are not limited to, the low daily trading volumes of Dufry’s Shares on the
SIX Swiss Exchange; the need of investors for liquidity in course of the current financial crisis forcing them to
sale Dufry’s Shares abruptly; developments that impact Dufry’s financial results and fluctuations in its financial
results; changes in market expectations about Dufry’s valuation; and investors’ assessments of Dufry as well as
changes in the valuation of its competitors.
US holders may not be able to exercise pre-emptive rights.
US holders of the Shares may not be able to exercise any pre-emptive or preferential rights in respect of
Shares held by them unless a registration statement under the US Securities Act is effective with respect to such
rights or an exemption from the registration requirements thereunder is available. There can be no assurance that
the Company will file a registration statement in such circumstances, or that, if filed, it will be declared
effective. If a US holder of shares cannot exercise its pre-emptive rights, its ownership interest will be diluted.
See “Share Capital and Shares.”
Civil liability provisions of US federal or state securities laws may not be enforceable in Switzerland.
The Company is organized under the laws of Switzerland. A majority of the Company’s directors and
executive officers are non-residents of the United States. All or a substantial portion of the assets of such nonresident
persons and of the Company are located outside the United States. As a result, it may not be possible
for investors to effect service of process within the United States upon such persons or the Company, or to
enforce against them in US courts judgments obtained in such courts predicated upon civil liability provisions of
the federal or state securities laws of the United States. The Company has been advised by its Swiss counsel that
there is doubt as to the enforceability in Switzerland, in original actions or in actions for the enforcement of
judgments of US courts, of civil liability provisions of the federal or state securities laws of the United States.
17

Transaction Overview
THE ACQUISITIO� OF HUDSO� GROUP HOLDI�GS, I�C.
In April 2008, Dufry acquired through the investment vehicle Advent-Hudson, LLC, 11.2 percent of the
share capital of Hudson Group Holdings, Inc. (“Hudson”) alongside with Advent International Corporation,
which acquired 68.9 percent of Advent-Hudson, LLC. The legal entity “Hudson Group Holdings, Inc.” was
incorporated only in view of this acquisition as part of the transaction structure. Hudson’s consolidated financial
statements included elsewhere in this Listing Prospectus comprise all assets and liabilities of Hudson’s legal
entities, which was formerly accounted for under the name “Airport Management Services, LL.C.”
On September 3, 2008, Dufry signed an agreement and plan of merger agreement (the “Merger
Agreement”) with, among others, Hudson and the existing shareholders of Hudson, Advent-Hudson, LLC and
Hudson Media Inc. to acquire Hudson and all its subsidiaries (Hudson together with its subsidiaries the “Hudson
Group”). The acquisition of Hudson (the “Acquisition”) closed on October 15, 2008 and was structured as a
reverse triangular merger of two U.S.-subsidiaries of Dufry with Hudson essentially resulting in an exchange of
shares of Hudson for the New Shares and mandatory convertible notes (the “MCN”) of Dufry.
The consideration for the former non-Dufry shareholders of Hudson (Dufry already held indirectly via
Advent-Hudson, LLC, 11.2 percent in Hudson before the Acquisition) consisted of (i) 4,218, 750 New Shares
issued from the authorized capital of Dufry and (ii) 932,704 zero-coupon CHF 85 MCN which converted into
932,704 registered shares issued from Dufry’s conditional capital at no premium on December 9, 2008. The preemptive
rights and the advance subscription rights of the existing shareholders have been excluded. The
applicable exchange ratio for the New Shares and the MCN has been determined based on the 3-month weighted
average share price of Dufry of CHF 85 and values 100 percent of Hudson Group’s equity at US$ 446 million.
Dufry also refinanced Hudson Group’s existing debts of US$ 390 million. Dufry therefore has structured a new
5-year committed syndicated facility of approximately CHF 1.25 billion, which has been fully underwritten by a
group of five banks comprising Banco Santander, BNP Paribas, ING, Raiffeisen Zentralbank and Royal Bank of
Scotland. This facility is used to refinance Hudson Group’s debt as well as Dufry’s existing bank debt.
The Integration of Hudson Group Holdings, Inc.
As a result of the Acquisition, Hudson now is wholly owned by the Dufry Group. The business of Hudson
is fully integrated into the Dufry Group and forms a new region in addition to the existing five regions of Dufry
(see “Business—Operations—Dufry’s Operational and Financial Control Structure—General”). Hudson’s
existing management team will remain in place and will continue to work closely with the existing airport
authorities and other landlords. Hudson will be integrated as follows:
Dufry AG
Dufry International AG
Dufry Americas
Holding, Inc.
Hudson Group
Holdings, Inc.
As of October 31, 2008, the Dufry Group structure is as follows: The region Europe comprises 13 operating
subsidiaries, the region Africa 7 operating subsidiaries, the region Eurasia 7 operating subsidiaries, the region
North America & Caribbean 31 operating subsidiaries, the region South America 3 operating subsidiaries and
the new region Hudson 55 operating subsidiaries (see F-59 seq. and F-228 seq.).
18
100%
100%
100%

The Combined Company and Strategy
The Acquisition of Hudson, the leading travel retailer in North America, will be part of the Dufry Group’s
growth strategy. The combined company has 1,016 stores in 40 different countries, covers 138 airport locations,
has a retail surface of approximately 137,540 square meters in the aggregate and employs 11,588 employees (as
of June 30, 2008). The Dufry Group,will have a total global market share of 7 percent in terms of revenue in the
travel retail industry and a market share of 33 percent in the US travel retail market.
The analysis of Hudson’s business model shows that the duty-paid segment also provides significant
business opportunities alongside the duty-free business. The operative performance of Hudson Group illustrates
that an adequate duty-paid convenience store concept focused on travel retail can generate substantial value.
With Hudson’s large, high-quality concession portfolio and robust growth rates with high margins similar to
Dufry, Hudson is well suited to an international airport retailer such as Dufry. Hudson’s duty-paid business
model is highly complementary to Dufry’s currently predominant duty-free activities. The implementation of
such a best-in-class concept on an international scale in many of Dufry’s international locations and also new
locations should create a further revenue stream based on Dufry’s existing duty-free franchise.
With the support of Hudson’s current management team Dufry intends to roll out Hudson’s business model
internationally over the next three to four years. Primarily, Dufry will focus in a first phase on airports where it
already operates similar duty-paid concepts or where it already has a significant presence in duty-free retailing,
hence, leveraging its infrastructure and organization. On a second phase it intends to combine the duty free and
the duty paid concepts to further expand in new markets the travel retail, accessing to both international and
domestic passengers. Dufry expects to realize annual revenue and cost synergies from the acquisition in the
current scope of the business of approximately CHF 20 million within two years.
In addition, the Acquisition leads to a more balanced portfolio exposure of the Dufry Group, diversifying
different revenue streams. After the integration of Hudson, Dufry’s share of duty-paid business increases from
about 15 percent in 2007 to more than a third of sales.
Furthermore, Hudson’s valuable relationships with its airport and retail partners in the US will enhance
Dufry’s ability to develop in North America, particularly since many airports in North America are investing in
significant expansions, in part to build additional retail space. Current expansion plans affects to airports where
Hudson is already present, namely Dallas Fort-Worth, Baltimore, New York JFK, Atlanta Hartsfield and
Raleigh.
19

DIVIDE�DS A�D DIVIDE�D POLICY
All New Shares will have the same dividend rights as all of the other outstanding Shares. A dividend has to
be proposed by the Board of Directors and approved at a general meeting of the Company’s shareholders. Under
Swiss law, the Company’s statutory auditors must confirm that any proposal by the Board of Directors to
declare a dividend is in accordance with the law and the Company’s Articles of Incorporation (the “Articles”).
Dividends may be paid if the Company has sufficient distributable profits from previous business years or
sufficient free reserves to allow the distribution of a dividend. In addition, at least 5 percent of the annual net
profits of the Company must be appropriated and booked as general legal reserves, unless these reserves already
amount to 20 percent of the nominal share capital of the Company. Any net profits remaining are at the disposal
of the shareholders’ meeting. Any dividends would be subject to Swiss withholding tax, all or part of which
potentially can be reclaimed under the relevant tax rules in Switzerland or double taxation treaties concluded
among Switzerland and foreign countries (see “Taxation”).
Any dividend proposal by the Board of Directors will depend upon the Company’s earnings and financial
condition, market conditions, the general economic climate and other factors, including cash requirements,
business prospects, and tax, regulatory and other legal considerations. The Company expects that the principal
source of funds for the payment of dividends, if any, will be dividends and other payments received from its
current and future subsidiaries. The determination of each subsidiary’s ability to pay dividends is made
independently in accordance with applicable law. Dividends, if declared by the Company, are expected to be
declared in Swiss Francs.
Total Dividends and Dividends per Share
The following table states the total amount of dividends paid out by the Company in the respective years as
well as dividends per Share. The calculation of earnings per share for all periods presented has been adjusted to
include the impact of the share split as of November 17, 2005.
2004 2005 2006 2007 2008
Total amount................................................................ 0
Dividend per Share (nominal value
0 14,062,500 14,062,500 14,062,500
CHF 5.00 each) ........................................................... 0 0 1 1 1
Net earnings per Share (after taxes) (1) ........................... 1.95 3.98 7.66 5.35 N/A
(1) Basic earnings per share, without dilution effect by outstanding share options. Diluted earnings per share:
CHF 1.95 (2004), CHF 3.98 (2005), CHF 7.61 (2006), CHF 5.27 (2007).
Dividends and similar payments by Swiss companies to certain persons and organizations with connections
to Osama bin Laden, the “Al-Qaeda” Group or the Taliban, the Republic of Iraq, Yugoslavia, Liberia, Myanmar
(Burma), Sierra Leone and Zimbabwe and others are currently restricted pursuant to sanctions imposed by the
Swiss government.
20

DUFRY
CAPITALIZATIO�
The following table sets forth as of June 30, 2008, the actual consolidated capitalization of the Dufry
Group. It should be read in conjunction with the historical consolidated financial statements and the related
notes of the Dufry Group, as well as the other financial statements and information included in this Listing
Prospectus.
21
As at June 30, 2008
(in CHF millions)
Cash and cash equivalents .............................................................................. 145.3
Short- and long-term financial debt ................................................................ 579.3
Total shareholders’ equity .............................................................................. 707.6
Minority interests ............................................................................................ 232.0
Total capitalization ......................................................................................... 1,286.9
HUDSO�
The following table sets forth as of June 30, 2008, the actual consolidated capitalization of the Hudson
Group. It should be read in conjunction with the historical consolidated financial statements and the related
notes of the Hudson Group, as well as the other financial statements and information included in this Listing
Prospectus.
As at June 29, 2008
(in US$ millions)
Cash and cash equivalents .............................................................................. 37.0
Short- and long-term financial debt ................................................................ 390.0
Total shareholders’ equity .............................................................................. 447.4
Minority interests ............................................................................................ 17.6
Total capitalization ......................................................................................... 931.7
DUFRY A�D HUDSO� COMBI�ED
The following table sets forth as of June 29 / 30, 2008, the consolidated capitalization of the Dufry Group
and the Hudson Group combined.
As at June 29 / 30,
2008
(in CHF millions)
Cash and cash equivalents .............................................................................. 183.0
Short- and long-term financial debt ................................................................ 976.7
Total shareholders’ equity .............................................................................. 1,163.5
Minority interests ............................................................................................ 249.9
Total capitalization ......................................................................................... 2,236.3
Based on a CHF:US$ exchange rate of 1.01799 as of June 29, 2008.

MA�AGEME�T DISCUSSIO� A�D A�ALYSIS OF FI�A�CIAL CO�DITIO� A�D RESULTS OF
OPERATIO�S
The following discussion and analysis of the Dufry Group’s and Hudson’s financial condition and results of
operations should be read in conjunction with the consolidated financial statements of Dufry Group as at and
for the years ended December 31, 2006 and 2007 and as at and for the six months ended June 30, 2007 and
2008 and the consolidated financial statements of Hudson as at and for the fifty-two weeks ended December 30 /
31, 2006 and 2007 and as at and for the twenty-six weeks ended June 29 / July 1, 2007 and 2008 included
elsewhere in this Listing Prospectus. The discussion includes forward-looking statements which involve risks
and uncertainties. Potential investors should review the “Risk Factors” set forth elsewhere in this Listing
Prospectus for a discussion of important factors that could cause actual results to differ materially from the
results described in or implied by the forward-looking statements contained herein.
The following discussion is split in a Dufry and a Hudson part, reflecting the fact that until June 30, 2008,
the companies were separate entities.
DUFRY
All figures in this section are denominated in Swiss francs if not indicated otherwise.
Basis of Presentation and Accounting Policies
Dufry’s consolidated financial statements have been prepared on a historical cost basis, except for
derivative financial instruments and available-for-sale investments that have been measured at fair value. The
carrying values of recognized assets and liabilities that are hedged items in fair value hedges, and are otherwise
carried at cost, are adjusted to record changes in the fair values attributable to the risks that are being hedged.
The consolidated financial statements are presented in Swiss francs and all values are rounded to the nearest
thousand (CHF 000) except when otherwise indicated.
The consolidated financial statements of Dufry Group have been prepared in accordance with International
Financial Reporting Standards (IFRS).
The consolidated financial statements comprise the financial statements of Dufry and its subsidiaries as at
December 31 each year. Subsidiaries are fully consolidated from the date on which the Group obtains control,
mostly being the date of acquisition, and continue to be consolidated until the date that such control ceases. The
financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies. All intra-group balances, income and expenses and unrealized gains and losses
resulting from intra-group transactions are eliminated in full.
Minority interests in the net assets (excluding goodwill) of consolidated subsidiaries are identified
separately from the Group’s equity therein. Minority interests consist of the amount of those interests at the date
of the original business combination and the minority’s share of changes in equity since the date of the
combination. Losses applicable to the minority, in excess of the minority’s interest in the subsidiary’s equity, are
allocated against the interest of the Group, except to the extent that the minority has a binding obligation and is
able to make an additional investment to cover the losses. The share of the minorities in the net earnings of the
Group is also presented separately. Acquisitions of minority interests are accounted for using the parent entity
extension method, whereby, the difference between the consideration and the book value of the share of the net
assets acquired is recognized in goodwill.
See also “— Changes in Accounting Policies.”
Factors Affecting Results of Operation
General
Dufry’s revenues are generated by its travel retail sales, with advertising revenues contributing
approximately 2 percent of turnover annually. In addition to the cost of goods sold, the Dufry Group’s major
operating expenses are concession and other periodic fees associated with its retail operations and personnel
costs. The Dufry Group aims to generate top-line growth while also improving its gross margin and developing
a cost-effective operations structure to increase returns.
22

Sales
Growth in the Dufry Group’s sales has been, and is expected to continue to be, driven by the combination
of organic growth and the Dufry Group’s strategy of improving and expanding existing facilities as well as
seeking new concessions.
Organic growth is a function of a number of factors, including:
Passenger Flows: The number of airline passengers passing through the airports in which the Dufry Group
operates is the most significant factor influencing its sales. Historically, airline passenger growth has been
strong and the Airports Council International expects global air travel to increase by an average of 4.2
percent each year over the next 10 years, which would effectively see the current number of passengers
double by 2024. Although passenger numbers may be affected by external shocks such as terrorist attacks,
wars, epidemics and other calamities, airline passenger numbers have proved resilient over the longer term.
For example, the recent increase in both domestic and international airline passenger traffic has reversed the
decline in the wake of the September 11, 2001 terrorist attacks. See “Risk Factors—Events outside the
control of Dufry that cause a reduction in airline and cruise line passenger traffic, including but not limited
to terrorist attacks and the current economic downturn, could adversely affect its business”.
Product Pricing: Traditionally, duty- and tax-free sales of spirits, tobacco, perfumes and cosmetics made
solely to international travelers have dominated the travel retail sector with the prices of duty-free products
comparing favorably to those of duty-paid products of ‘High Street’ retailers. To function as a driver of
organic growth, however, Dufry’s pricing strategy reflects consumer price inflation, targeted marketing of
specific products in certain locations and the pricing policy of the Dufry Group’s suppliers.
Revenue Productivity: Productivity may be improved through penetration (ie, the number of passengers that
actually purchase goods) and average spend per customer. Both elements may be influenced by Dufry to
improve sales. This may be achieved through infrastructural measures, such as improving the layout,
location and accessibility of the shops, as well as marketing activities, such as signage inside and outside of
the shop, product assortment, active selling by sales staff and customer service. See “Business—Dufry’s
Marketing Strategy.”
In addition to the potential for organic growth in sales, the Dufry Group aims to grow sales by enhancing
and expanding its existing facilities. To that end, the Dufry Group completely refurbished and/or expanded its
facilities in 2007 for example at the Moscow Domodedovo Airport (Russian Federation) and in Morocco. In
2008, Dufry refurbished two of its main locations in the Dominican Republic (namely La Romana Airport and
Las Americas, the country’s main airport), as well as shops at Tunis Carthage Airport and the main shop in
Sharjah Airport (UAE), as well as a shop in Amsterdam Schiphol Airport. Shops in Trinidad, Puerto Vallarta,
Puerto Rico, São Paulo (Brazil), and at the Milan Malpensa and Linate Airports (Italy) have also been
refurbished. Management also expects growth opportunities to arise for Dufry:
as existing concessions operated by other travel retailers come up for renewal;
as existing concessions operated by Dufry come up for renewal;
as the Dufry Group enters new markets; and
from consolidation in the global travel retail sector through, for example, bolt-on acquisitions.
On December 17, 2006, the Group acquired 100 percent of the share capital of the Luis Bared Group with
23 shops in Puerto Rico and other Caribbean locations. In 2007, Dufry was awarded new concessions for
example at Sheremetyevo Airport (Russia), Aruba International Airport Reina Beatrix (Dutch Caribbean), Hong
Kong (China) and Sharm-el-Sheikh (Egypt), complementing existing activities Dufry already has in a particular
area (Moscow and Aruba) or becoming a platform for entering new markets (Egypt and Hong Kong).
Furthermore, Dufry was reawarded the existing concession that came up for renewal at Milan-Malpensa and
Milan-Linate. On March 1, 2008, the Group acquired 51 percent of the voting shares of Dufry CE s.r.o, a
privately owned company based in Prague, Czech Republic. This company, founded in March 2008 as spin-off
of a local corporation, currently operates seven duty-free and duty-paid shops at the airport of Prague. In 2008,
Dufry opened two new shops at La Romana (Dominican Republic) and 3 new shops at El Cibao International
Airport in Santiago de los Caballeros (Dominican Republic). In addition, Dufry was awarded concessions to
23

operate new retail shops in the Italian train stations of Milan Central, Florence, Torino and Naples with totally
more than 4,000 square meters of retail space.
Unlike ‘High Street’ retailers, for whom rental costs are generally based upon square meters occupied, the
Dufry Group’s concession fees are generally based upon the amount of its sales; as a result, although
Management uses sales per square meter in certain of its evaluations, it is not a key performance indicator for
the Dufry Group. Given the same level of customers, the amount of sales per square meter of retail space varies
considerably depending on the type of shops (eg, general travel retail or specialized shops), the type of channel
(eg, airports or cruise lines) and the region or country in which the shop is operated. The retail space occupied
by the Dufry Group in any facility, or its location in that facility, may also be affected by the Dufry Group’s
longer term growth strategy in that facility or region given the regulatory or contractual framework under which
it operates. This may involve the Dufry Group acquiring retail space temporarily with lower sales per square
meter in order to secure its longer term position in markets that it expects will experience growth. In addition,
the Dufry Group may increase its space where its sales in a concession demonstrate that the allocated retail
space has reached saturation levels, meaning that there is not enough space for the current level of customers;
such an increase in space may cause the overall sales to increase but the amount of sales per square meter to
decrease.
Gross Margin and Advertising Income
Management views the cost of goods sold and the resulting gross margin as an important measurement of
Dufry’s performance as a retailer. The cost of goods sold at any concession is influenced by the Dufry Group’s
centralized supplier negotiation strategy, which includes the segmentation of suppliers by volume and active
central management of these relationships. Management believes that the recent implementation of new
information technology systems will assist further in gaining gross margin benefits from this strategy by
providing a higher level of centrally available information which will assist negotiation. In addition, the
reorganization of the Dufry Group’s logistics function is expected to deliver further positive gross margin
effects.
The Dufry Group’s pricing policy and product mix in any given location also affects a concession’s gross
margin and, as such, the relationship between product mix, particularly higher margin products, and gross
margin is an important one. To that end, the Dufry Group aims to allocate retail space, as much as possible, to
the more profitable product categories.
Dufry’s relationships with its suppliers also generate advertising income. Generally representing
approximately 2 percent of turnover annually, thereby positively affecting the Dufry Group’s gross margin,
Dufry’s generation of advertising revenue is assisted by its global presence and the large number of locations in
which it may offer advertising opportunities.
Operating Expense Structure
The operating expense structure is important to Dufry’s profitability. After the cost of goods sold,
concession and other periodic fees associated with its retail operations are Dufry’s principal expense.
In return for granting the retailer the right to operate its concession, the airport authority or other travel
facility landlord typically receives a fee that is either fixed or based upon the number of passengers passing
through the airport, the amount of sales at the concession, the floor area of the concession or a combination of
these factors. Certain concession agreements provide for a minimum annual guaranteed payment. Currently, the
majority of Dufry’s concessions provide for a minimum annual guaranteed amount that is either fixed, based
upon the number of passengers using an airport or other travel channel, or based upon current budgets or past
results. As a result, the Dufry Group’s profitability may be adversely affected where revenues decrease at
concessions with a fixed minimum annual guaranteed amount without a corresponding decrease in concession
fees payable.
The Dufry Group’s selling expenses, such as concession fees, credit card commission and packaging, are
variable in nature as they generally move in line with sales. In contrast, general and administrative expenses,
such as repairs and maintenance, rent, general administration and marketing are fixed in the short term. In
addition, personnel costs, which represent a significant expense, comprise fixed and variable components as
bonuses are based upon the performance of the business.
24

Seasonality
Further, and irrespective of the prevailing economic climate, passenger flows and the Dufry Group’s sales
are seasonal. Such seasonality, however, varies from region to region. In Europe, for example, the highest levels
of sales and profits are during the months of July and August, while in the Central and South Americas and the
Caribbean the highest levels of sales and profits are during December and in the USA from June to August. In
addition, certain seasonal events affecting sales, such as Easter or Ramadan, occur on different dates each year.
As Dufry increases its working capital prior to these peak sales periods to carry higher inventory levels and
increase its sales staff levels to meet anticipated demands, its results of operations would be affected negatively
by any substantial decrease in sales during the traditional peak selling periods.
Currency Fluctuations
The Dufry Group benefits from natural hedging to a large extent, as its sales are primarily in Euros or US
dollars and its cost of goods and concession payments are also primarily denominated in Euros or US dollars. In
addition, concession fees are largely linked to sales. The Dufry Group’s results may, however, be positively or
negatively affected by currency fluctuations as it reports in Swiss Francs. However, the impact on profitability is
generally limited. See, further, “—Risk Management—Foreign Exchange Risk.”
Depreciation and Amortization
Dufry’s depreciation and amortization policies may also affect its profitability. The Dufry Group
depreciates property, plant and equipment on a straight line basis over the shorter of the useful life of the asset
(eg, four years for furniture and 10 years for fittings and other leasehold improvements) or the life of the
concession to which the assets relate. Intangible assets with finite lives are amortized over the useful economic
life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.
Intangible assets with indefinite useful lives are tested for impairment annually either individually or at the cashgenerating
unit level and are also reviewed annually to determine whether indefinite life assessment continues to
be supportable. If not, the change in useful life assessment from indefinite to finite is made on a prospective
basis. Intangibles with indefinite useful lives are not amortized.
Financial Result
The Dufry Group’s profitability may be affected by the net amount of interest paid, interest earned, foreign
exchange gains or losses from foreign exchange translation effects and gains or losses from the sale of
subsidiaries.
Income Taxes
Tax expense is based on the operating profit and net financial income and expenses of the Dufry Group on a
separate return basis, ie, each subsidiary is taxed in its jurisdiction of operation, including financial income and
expenses arising from inter-company financing in the Dufry Group. Tax losses carried from one tax period to
the next may also influence the Dufry Group’s tax expense. As a result, there are substantial differences in tax
rates across the Dufry Group. However, Dufry has put in place a standardized tax planning system across the
Dufry Group whereby certain Dufry Group costs may be charged back to the Dufry Group’s operating
subsidiaries based on clearly defined parameters through management fees, logistics costs and franchise fees
determined on an arm’s length basis.
Minorities
Dufry’s business model places importance on the involvement of local partners in its concessions. See
“Business—Business Strategy—Position Dufry as preferred partner for long-term business relationships.” While
the Dufry Group benefits from the contribution that a local partner brings to the operation of a concession, the
involvement of such partners in the ownership of the Company’s operating subsidiaries reduces the net earnings
of the Dufry Group. For example, 40 percent of one of the Company’s main European operating subsidiaries,
Dufrital, is owned by Milan’s airport authority, the Società Esercizi Aeroportuali SpA; 49 percent of the Dufry
Group’s operating subsidiary at Sharjah is owned by the Sharjah Civil Aviation Authority; 49 percent of DSA is
publicly held; and 40 percent of the Company’s subsidiary, Duty Free Caribbean, is owned by its local partner
Cave Shepherd & Co, one of the longest established trading companies in Barbados. The Dufry Group’s interest
in the earnings of these operating subsidiaries is therefore significantly reduced.
25

Significant Accounting Estimates and Assumptions
The preparation of the Group’s financial statements requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of
contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could
result in outcomes that could require a material adjustment to the carrying amount of the asset or liability in the
future.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance
sheet date, which may have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year, are discussed below.
Concession rights
Concession rights acquired in a business combination are valued at fair value as at the date of acquisition.
The useful lives of operating concessions are assessed to be either finite or indefinite based on individual
circumstances. The useful lives of operating concessions are reviewed annually to determine whether the
indefinite life assessment for those concessions where it is assumed continues to be sustainable. The Group tests
the operating concessions with indefinite useful lives for impairment. The underlying calculation requires the
use of estimates.
Brands and goodwill
The Group tests brands and goodwill annually for impairment in accordance with IAS 36. The underlying
calculation requires the use of estimates.
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 assessment is uncertain. The Group recognizes liabilities for tax audit issues based on estimates
of whether additional taxes will be payable. Where the final tax outcome is different from the amounts that were
initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which
such assessment is made.
Deferred tax assets
Deferred tax assets are recognized for unused tax losses only to the extent that it is probable that taxable
profit will be available against which the losses can be utilized. Significant management judgment is required to
determine the amount of deferred tax assets that can be recognized, based upon the likely timing and level of
future taxable profits together with future tax planning strategies.
Share-based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. Estimating fair value requires determining the most
appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of
the grant. This also requires determining the most appropriate inputs to the valuation model including the
expected life of the option, volatility and dividend yield and making assumptions about them.
Pension and other post-employment benefit obligations
The cost of defined benefit pension plans and other post-employment benefits is determined using actuarial
valuations. The actuarial valuation involves making assumptions about expected rates of return on assets, future
salary increases, mortality rates and future pension increases. Due to the long term nature of these plans, such
estimates are subject to significant uncertainty.
26

Recent Developments
For recent developments, please refer to the Section “The Acquisition of Hudson Group Holdings, Inc.”
(p. 18 et seq.).
Results of Operations
Comparison of six months ended June 30, 2008 and June 30, 2007
Turnover. Turnover comprises revenues from net sales and advertising. Dufry continued its growth trend
for another consecutive half year. In the first half of 2008, turnover measured on constant FX rates increased by
15.3 percent. Of this, organic growth accounted for 10.9 percent while new projects contributed 4.4 percent to
turnover growth. Including the negative foreign exchange accounting effects of 11.1 percent, mainly related to
the translation of the weakening US dollar against the Swiss Franc, turnover in comparison to the first half of
2007 grew by 4.2 percent to CHF 934.8 million from CHF 896.9 million.
Net sales constituted 97.5 percent of turnover in the six-month period ended June 30, 2008 and increased by
3.9 percent or, in absolute terms by CHF 34 million compared to the same period in 2007. Advertising income
increased by 20.1 percent or, in absolute terms by CHF 3.9 million for the six months ended June 30, 2008
compared to the same period in 2007.
Turnover of region Europe (incl. headquarters) remained flat at CHF 199.3 million compared to CHF 199.6
million. The main reason for this development was a substantial reduction of Alitalia’s flight schedule, which
impacted the Italian operations, most notably at the Milan airports. Switzerland, Spain and France saw a
turnover growth in line with expectations.
Region Africa continued its growth and delivered turnover of CHF 92.6 million, an increase of 20.4 percent
compared to CHF 77.0 million. Morocco continued its performance by posting double-digit growth and Egypt
achieved a good ramp-up of its turnover.
Region Eurasia increased its turnover by 19.5 percent to CHF 125.3 million from CHF 104.8 million
despite negative translation effects from the US Dollar in the Russian operations. All operations performed well
posting double-digit growth. Growth was further fuelled by the operations at Moscow-Sheremetyevo airport,
which was opened in July last year, as well as the new shops in Singapore’s Terminal 3.
Turnover of region North America & Caribbean decreased by 12.1 percent to CHF 207.5 million from
CHF 236.0 million in the same period last year due to the translation effects resulting from the devaluation of
the US dollar. On constant FX terms, turnover was stable. Within the region, the USA and several of the
Caribbean islands had a good performance with double-digit growth whereas the Mexican operations and Puerto
Rico posted lower turnover.
Region South America grew its turnover by 10.9 percent to CHF 310.2 million from CHF 279.6 million.
Measured in its functional currency US Dollar, turnover growth was 30 percent, backed by international
passenger growth of 7 percent, a favourable economic environment in Brazil with a strengthening of the
purchase power for US dollar based products, and productivity improvements related to several operational
measures implemented.
Gross Profit. Gross profit reached CHF 807.8 million for the first half of 2008, an increase of 8 percent
compared to CHF 470.3 million in the corresponding period of the previous year. The gross margin including
advertising income for the six months ended June 30, 2008 was approximately 54.3 percent, compared to
approximately 52.4 percent for the same period in 2007.
Selling Expenses. Selling expenses amounted to 21.0 percent of turnover for the six months ended June 30,
2008 compared to 20.4 for the same period in 2007. The increase in selling expenses in 2008 compared to 2007
of CHF 13.8 million from CHF 182.8 million to CHF 196.6 million was primarily due to the increase in
concession fees of 1.0 percentage point in certain of the Dufry Group’s operations due to increased sales at those
locations. This was partially compensated with a higher selling income.
Personnel. Personnel expenses, expressed as a percentage of turnover, increased slightly from 12.7 percent
for the six months ended June 30, 2007 to 12.8 percent for the same period in 2008. In absolute terms, personnel
expenses increased by approximately CHF 5.8 million for the six months ended June 30, 2008 compared to the
27

same period in 2007, or 5.1 percent. The increase in personnel expenses is attributable primarily to the increase
in the number of full time employee equivalents from 6,750 at June 30, 2007 to 7,180 at June 30, 2008 which, in
turn, is a corollary of the Dufry Group’s increased sales in the period.
EBITDA. EBITDA for the first half of 2008 increased by 14.8 percent to CHF 121.6 million compared to
CHF 105.9 million for the respective period of 2007. The Dufry Group’s EBITDA margin (before other
operational income/expense) improved by 1.2 percentage points for the six months ended June 30, 2008
compared to the first six months of 2007, going from 11.8 percent in 2007 to 13.0 percent in 2008. Before
currency effects, EBITDA before other operational income/expenses would have reached CHF 139.2 million in
the first six months of 2008, increasing 31.4 percent over the same period 2007.
General Expenses. General expenses for the six months ended June 30, 2008 represented 7.5 percent of
turnover compared to 7.6 percent for the same period in 2007. In absolute terms, general expenses increased by
CHF 2.2 million compared to the same period in 2007, or approximately 3.2 percent.
Depreciation, Amortization and Impairment. Depreciation, amortization and impairment represented 3.6
percent of turnover for the six months ended June 30, 2008 compared to 3.8 percent for the same period in 2007.
Depreciation remained almost stable and amounted to CHF 14.9 million, reflecting customary annual
depreciation of property and equipment. Amortization decreased to CHF 18.3 million in the first half 2008 from
19.3 million in the respective period in 2007 due to the translation effect of the US Dollar.
Other Operational Expenses and Income. Other operational expenses increased by CHF 9.1 million for the
six months ended June 30, 2008 compared to the same period in 2007.
EBIT. In the first six month of 2008, EBIT reached CHF 78.9 million compared to CHF 83.8 million in the
respective period of 2007. Adjusted for one-off effects, which include expenses related to the unrealized
acquisition of World Duty Free (“WDF”) of CHF 5.2 million in the first half of 2008 and an income of
CHF 17.5 million of capital gain from the over-allotment option of the DSA’s IPO in the first half of 2007,
EBIT increased by 26.8 percent to CHF 84.1 million for the first half of 2008 from CHF 66.3 million for the
same period in 2007.
Financial Result. This item reflects the net amount of interest income, interest expense and foreign
exchange gains or losses. Financial expenses decreased by CHF 7.5 million to CHF 6.1 million for the six
months ended June 30, 2008 from CHF 13.6 million in the same period of 2007. This improvement is mainly
due to lower interest expenses based on lower interest rates and reduced net debt.
Taxes. As noted earlier in “—Factors Affecting Results of Operations—Income Taxes,” the Dufry Group’s
tax expense is based on the operating profit and net financial income and expenses, including financial income
and expenses arising from inter-company financing in the Dufry Group, of each subsidiary as taxed in its
jurisdiction of operation. Income taxes for the first six months of 2008 stood at CHF 17.2 million compared to
CHF 13.2 million for the corresponding period of 2007. The increase in tax expense in absolute terms was due
to increased Dufry Group taxable profits for the six months ended June 30, 2008 compared to 2007. The tax rate
measured as percentage of EBT increased to 23.7 percent from 18.8 percent. Excluding the tax exempt capital
gain in 2007 corresponding to CHF 17.5 million from the over-allotment option of the DSA IPO in the first half
of 2007, the tax rate in 2007 was 25.1 percent resulting in a decrease of the tax rate by 1.4 percentage points.
�et Earnings.Net earnings for the Group stood at CHF 55.5 million in the first half of 2008 compared to
CHF 57.0 million in the same period of 2007. The Dufry Group recorded a net profit after minorities of CHF
28.0 million for the six months ended June 30, 2008 compared to a net profit after minorities of CHF 35.5
million for the same period in 2007. Excluding the one-off effects of the WDF expenses in 2008 and the capital
gain of the DSA IPO 2007, net earnings to equity holders grew by 84 percent to CHF 33.2 million in the first
half year of 2008 from CHF 18.0 million in the same period in 2007. Minority interests of CHF 27.5 million for
the six months ended June 30, 2008 represented profits attributable to the minority shareholders in the Dufry
Group’s operating subsidiaries, including Dufrital, Dufry Sharjah FZC, Duty Free Caribbean and DSA. In the
six months ended June 30, 2008, basic earnings per share were CHF 1.99 compared to CHF 2.53 in the same
period in 2007.
28

Comparison of fiscal years ended December 31, 2007 and December 31, 2006
Turnover. Turnover comprises revenues from net sales and advertising. It reached CHF 1,930.3 million,
which represents an increase of 34.4 percent versus the previous year. Organic growth accelerated by 16.7
percent was driven partially by passenger growth and mainly by productivity improvements, especially in South
America. Growth from acquisitions, which contributed 14.1 percentage points, is attributable to the full year
effect of the Brazilian and Puerto Rican activities. While new concessions and expansions contributed 5.0
percentage points, the foreign exchange impact of conversion into CHF was negatively affected by 1.5 percent.
Net sales constituted 97.7 percent of turnover in 2007 and increased by CHF 481.6 million compared to 2006.
Advertising income increased by 37.9 percent or by CHF 12.3 million compared to 2006.
Region Europe increased net sales by 10.3 percent to CHF 408.7 million in 2007 against CHF 370.5 million
in 2006. Italy and Switzerland posted solid double-digit growth backed by passenger growth and recent shop
refurbishments. Dufry’s operations in Spain, which opened in 2006, also showed a strong growth based on the
full year effect as well as the ramp up of the operations along 2006 and 2007.
In region Africa, net sales saw an increase of 25.4 percent and reached CHF 183.5 million in 2007
compared to CHF 146.4 million in the previous year. Morocco performed well based on strong organic growth
and the openings of new stores. Tunisia also posted a strong set of results. Furthermore, Algeria contributed to
the region’s growth due the full year effect as did Egypt, where Dufry opened its first shops during 2007.
Region Eurasia increased net sales by 21.0 percent to CHF 226.6 million in 2007 from CHF 187.2 million
in 2006. Russia had a strong growth due to the ongoing positive passenger trends as well as new operations at
Sheremetyevo Airport (Moscow). The positive fundamentals also drove growth in Sharjah (United Arab
Emirates) and Cambodia, where refurbishments and new shops further fuelled growth. Belgrade, which opened
in 2006, and Hong Kong, where Dufry started operations in 2007, also contributed to growth in Eurasia. The
new operations also led to start-up costs, which are customary to such projects and which were expensed
through the income statement.
In region North America & Caribbean, net sales soared by 43.0 percent to CHF 469.1 million in 2007
versus CHF 328.0 million in the previous year. Out of this, the acquisition in Puerto Rico contributed 29.9
percent. All major operations performed well and posted double-digit growth. Dufry continued to open new
shops in the Caribbean region, most notably in Dominican Republic, which further supported growth in the
region.
Region South America performed well with net sales reaching CHF 597.5 million in 2007, an increase of
60.8 percent from CHF 371.6 million in 2006. Excluding the full year effects, net sales of airport operations
increased by 38.5 percent on a US dollar basis despite a moderate passenger growth of 3.6 percent. The
productivity improvements of Dufry’s Brazilian operations, which Dufy undertook during 2006 and 2007, as
well as the strong economy in Brazil led to this positive performance. Equally, the cruise line operations,
Flagship, grew by 22.6 percent partially due to the opening of shops on new vessels.
Gross Profit. In 2007, gross profit increased by 38.1 percent to CHF 1,028.0 million from CHF 744.4
million in 2006. Gross margin increased by 1.5 percentage points to 53.3 percent in 2007 from 51.8 percent in
2006. The improvement in gross margin reflects Dufry’s focus on a number of important factors ranging from
improvements of the IT platform, changes in the product mix towards more profitable product categories, such
as perfumes and cosmetics, to better negotiations and relations with its suppliers.
Selling Expenses. Selling expenses, net, reached CHF 393.0 million or 20.4 percent of turnover versus
CHF 286.0 million or 19.9 percent in 2006. The increase of the selling expenses as a percentage of turnover was
primarily due to increased concession fees pertaining from new operations. This was partially compensated with
a higher selling income. The increase in selling expenses in absolute terms in 2007 compared to 2006 of CHF
118.2 million was primarily due to higher concessions and rental fees due to increased sales at those locations
and increased credit card commissions. Credit card commissions increased 41.1 percent in 2007 compared to
2006, constituting 5.0 percent of selling expenses in 2006 and 5.1 percent of selling expenses in 2007. Selling
expenses are presented net of concession and retail rental income. This is income generated by the Dufry Group
when Dufry Group sublets retail space at its shops to other retail operations. In 2007 this amounted to
approximately CHF 8.7 million.
Personnel Expenses. In 2007, personnel expenses accounted for CHF 234.6 million compared to CHF 179.5
million in 2006 showing an increase of 30.7 percent. This increase is mainly due to acquisitions effects and new
29

operations added to the Group. As of December 31, 2007, the number of employees (FTE’s) stood at 7,094
compared to 6,526 at the end of 2006, an increase of 8.7 percent. Personnel expenses as a percentage of turnover
continued to decrease and reached 12.2 percent in 2007 compared to 12.5 percent in 2006. The reduction was
partially due to Dufry’s standardization projects implemented during 2007.
General Expenses. General expenses, net, amounted to CHF 141.2 million in 2007 against CHF 118.4
million in 2006. As a percentage of turnover, general expenses showed a decrease to 7.3 percent in 2007 from
8.2 percent in 2006, which similar to the personnel expenses, was partially due to the standardization initiatives.
EBITDA. In 2007, EBITDA (before other operational income/expenses) increased by a remarkable 61.6
percent to CHF 259.3 million from CHF 160.5 million in 2006. EBITDA margin increased by 2.2 percentage
points to 13.4 percent from 11.2 percent in 2006. The margin increase was mainly due to the improvement in the
gross profit as well as relatively lower personnel and general expenses. The improvements more than
compensated the increase in selling expenses.
Depreciation, Amortization and Impairment. Depreciation, amortization and impairment amounted to 3.6
percent of turnover in 2007 compared to 3.5 percent of turnover in 2006. Depreciation, amortization and
impairment rose to CHF 70.2 million in 2007 compared to CHF 50.0 million in 2006. The increase mainly stems
from amortization charges which increased to CHF 36.4 million in 2007 from CHF 23.9 million in 2006 and are
due to the amortization of the Puerto Rico acquisition and the full year effect of Brazil. Depreciation increased
due to various refurbishment projects and new operations.
Other Operational Expenses and Income. Other operational expenses decreased by CHF 1.2 million in 2007
compared to 2006. A large component of these expenses in both 2007 and 2006 was consulting and other
expenses relating to special projects. The largest components in 2007 were expenses for provisions and
arrangement fees for new operations and start-up costs.
EBIT. EBIT increased by 13.7 percent and amounted to CHF 192.3 million in 2007 versus CHF 169.2
million in the previous year. Excluding the other operational result, which accounted for CHF 58.7 million in
2006 and CHF 3.2 million in 2007, EBIT would have risen by 73.4 percent year-on-year.
Financial Result. Net financial expenses amounted to CHF 27.9 million in 2007 compared to CHF 30.7
million in 2006. Whereas in 2006, debt levels increased substantially in March 2006 due to the acquisition in
Brazil and led to a respective increase in interest expenses from thereon, the reduction in 2007 is due to overall
lower debt levels as well as better terms due to the improved covenants. The net financial result in 2007
improved by 18.7 percent compared to 2006.
Taxes. As noted earlier in “—Factors Affecting Results of Operations—Income Taxes,” the Dufry Group’s
tax expense is based on the operating profit and net financial income and expenses, including financial income
and expenses arising from inter-company financing in the Dufry Group. The Group’s taxable income is subject
to different tax rates, in accordance with the applicable legislation of the countries where the income is
generated. In 2007, income taxes stood at CHF 38.3 million versus CHF 13.9 million in the previous year. The
effective tax rate expressed as percentage of EBT was 23.3 percent in 2007 compared to 10.0 percent in 2006.
The increase in the effective tax rate is mainly due to the capital gain related to the IPO of DSA, which was not
taxable for the respective holding company, as well as excellent results in locations with higher tax rates and
certain deferred tax effects.
�et Earnings. Excluding the other operational result, net earnings before minorities increased by 86.6
percent to CHF 122.8 million in 2007 compared to CHF 65.8 million in the previous year. Net earnings for the
Group before minorities increased by 1.2 percent and reached CHF 126.0 million in 2007 compared to
CHF 124.6 million in 2006. Earnings attributable to the equity holders of the parent were CHF 75.0 million in
2007 compared to CHF 107.7 million in 2006 due to the IPO of DSA in 2006. At the same time, minority
interest in the Dufry Group’s operating subsidiaries, including Dufrital, Dufry Sharjah FZC and Duty Free
Caribbean and DSA, increased to CHF 51.1 million in 2007 versus CHF 16.9 million in 2006 due to the IPO. In
2007, basic earnings per share were CHF 5.35 compared to CHF 7.66 in 2006. Adjusted for other operational
result, adjusted EPS increased by 62 percent to CHF 5.59 in 2007 from to CHF 3.45 in 2006.
30

Liquidity and Capital Resources
General
Dufry’s principal source of liquidity has been and is expected to continue to be cash generated from
operations together with its short- and long-term credit facilities. Its principal liquidity requirements have been
and are expected to be for capital expenditures, in particular to finance acquisitions, the fitting out of new shops
and the renovation of existing shops, as well as any upfront payments associated with new concessions and
working capital for inventories. Management aims to maintain the Dufry Group’s leverage at levels that will
permit it to access the same levels of bank financing that it may access currently.
Liquidity and capital resources
As of December 31, 2007 Dufry’s net debt position amounted to CHF 370.4 million compared to
CHF 513.4 million by the end of 2006. The strong cash generation within the Group as well as the proceeds
from the execution of the over-allotment option in relation to DSA, allowed reducing net debt. Equity increased
to CHF 737.8 million as of December 31, 2007 from CHF 655.1 million at the end of the previous year.
As of 30 June 2008, net debt amounted to CHF 434.0 million compared to CHF 370.4 million at December
31, 2007. The increase is mainly due to Dufry’s purchase of an 11.2 percent stake (pre-dilution) of Hudson. The
amount paid of CHF 52.4 million was fully financed with debt.
Cash Flows from Operating Activities
Dufry’s cash generated from operations (before income taxes) amounted to CHF 237.8 million for the year
ended December 31, 2007. In 2006, the Dufry Group’s cash generated from operating activities (before income
taxes), was CHF 141.3 million. The increase in 2007 was due primarily to increased sales and a significantly
improved EBIT. The Group required only a limited quantity of additional net working capital to achieve this
plus in sales, so that net working capital expressed as percentage of turnover improved to 9.2 percent in 2007
compared to 10.4 percent in 2006.
For the six months ended June 30, 2008, Dufry’s cash generated from operations (before income taxes)
amounted to CHF 42.2 million which correspond to a decrease of CHF 19.4 million compared to June 30, 2007.
This decrease is mainly due to an increase in inventories.
Cash Flows from Investing Activities / Dufry’s Investment Policy
Capital expenditure is Dufry’s primary investing activity and may be divided into two main categories:
tangible and intangible capital expenditure. The first category includes spending on the renovation and
maintenance of existing shops and the fitting out of new shops whereas the second category reflects upfront
payments upon the granting of a new concession which are capitalized as an intangible asset and amortized over
the life of the concession unless otherwise required to be impaired. When contemplating an investment in a new
concession, Dufry focuses on profitable growth as its key investment criterion.
The Dufry Group invested approximately CHF 67.6 million in 2007 and CHF 63.6 million in 2006 in
tangible and intangible capital expenditure projects. For the six months ended June 30, 2008 the Dufry Group
spent approximately CHF 82.6 million including CHF 15.4 million on property, plant and equipment for the
refurbishment of existing shops and fitting out of new operations, CHF 11.7 million on upfront payments in
connection with new concessions and CHF 52.4 million related to the acquisition of 11.2 percent in Advent-
Hudson, LLC.
In addition to fitting out new shops Dufry currently expects to invest in renovation and maintenance of its
existing shops, including undertaking some major refurbishment projects each year. The Dufry Group is not
currently committed to any upfront payments in connection with new concessions during these periods, but it
does expect to continue its strategy of expansion as set out in “Business—Business Strategy—Focus on
Profitable Growth” and, therefore, such payments may occur. In addition, Management recognizes that, in
connection with the entry into new markets, it may be appropriate for the Dufry Group to invest in an airport’s
infrastructure or facilities.
31

Credit Facilities
The Dufry Group’s key credit facilities are negotiated and organized centrally, with only minor credit lines
at the regional level.
On August 19, 2008 Dufry signed a 5-year multi-currency credit-facility agreement of approximately CHF
1.25 billion. This syndicated credit facility is provided by Banco Santander, ING, Raiffeisen Zentralbank and
Royal Bank of Scotland. The facility has been used to refinance Hudson Group’s debt as well as Dufry’s
existing bank debt and serves for working capital and general corporate purposes.
Contractual Obligations
The Dufry Group is obliged to make minimum annual guaranteed concession payments under the majority
of its concession agreements. Although some payments are fixed, the majority of the minimum annual
guaranteed payments provided for in the Dufry Group’s concession agreements are dependent upon passenger
numbers, sales or a combination of both and, as a result, cannot be determined by the Dufry Group in advance.
In 2007, CHF 54.5 million of the Dufry Group’s CHF 376.3 million concession fees was attributable to
concession agreements providing for a fixed minimum annual guaranteed amount.
Risk Management
General
Dufry’s risk management is undertaken centrally by its Basel headquarters staff. The Dufry Group issues
procedures for all main commercial and financial processes, including financial and commercial reporting
processes, centralized assessment of legal risk, and global coordination of the Dufry Group’s insurance cover.
The regional headquarters’ personnel ensure the implementation of these procedures in their respective regions.
Foreign Exchange Risk
Dufry faces two types of exchange rate risk. First, it faces a certain amount of transaction exposure.
Although Dufry operates in 40 countries, the pricing of its products is mostly done in Euros or US dollars and in
most cases the Dufry Group also collects hard currencies from its customers. The cost of goods and concession
payments are also largely denominated in Euros or US dollars. In addition, concession fees are largely linked to
sales and, to that extent, not exposed to transaction risk. There are, however, certain cost elements, such salaries
and other general expenses, that are denominated in local currencies. Dufry does not currently engage in
forward foreign exchange hedging, as it benefits from natural hedging. Further, Dufry matches certain assets
and liabilities taking into consideration short-term cash flows in the respective currencies of its operations.
The second type of risk is the translation exposure, which arises as a result of Dufry’s reporting in Swiss
Francs, while a major part of its assets, liabilities, revenues and expenses are denominated in currencies other
than the Swiss Franc. Therefore, increases and decreases in the value of the Swiss Franc against other currencies
may affect its consolidated financial statements.
Interest Rate Risk
Dufry’s interest rate exposure is mainly related to interest-bearing net debt in the balance sheet. Although
Dufry’s operating subsidiaries engage in a certain amount of local borrowing activities, the vast majority of the
Dufry Group’s financial investments and debt is managed centrally by its Dufry Group Treasury. As such, the
Dufry Group’s interest rate risk is controlled centrally.
32

Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial year except as follows:
In 2007, Dufry Group has adopted the following new and amended IFRS and IFRIC interpretations. Adoption of
these revised standards and interpretations did not have any material effect on the financial performance or
position of the Group. They did however give rise to additional disclosures.
– IFRS 7 Financial Instruments: Disclosures
– IAS 1 Amendment - presentation of Financial Statements
– IFRIC 7 Applying the Restatement Approach under IAS 29, Financial Reporting in Hyperinflationary
Economies
– IFRIC 8 Scope of IFRS 2
– IFRIC 9 Reassessment of Embedded Derivatives
– IFRIC 10 Interim Financial Reporting and Impairment
The Group has also early adopted the following IFRS and IFRIC interpretations. Adoption of these
standards and interpretations did not have any effect on the financial performance or position of the Group.
They did however give rise to additional disclosures.
– IFRS 8 Operating Segments
– IFRIC 11 IFRS 2 – Group and Treasury Share Transactions
The accounting policies adopted in the preparation of the interim condensed consolidated financial
statements of June 30, 2008 are consistent with those followed in the preparation of the Group’s annual financial
statements for the year ended December 31, 2007, except for the adoption of new Standards and Interpretations,
noted below:
– IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their
Interaction (effective from January 1, 2008)
This Interpretation provides guidance on how to assess the limit on the amount of surplus in a defined
benefit scheme that can be recognized as an asset under IAS 19 Employee Benefits. As the Group’s
defined benefit schemes are not expected to be in surplus at year end, the Interpretation will have no
impact on the financial position or performance of the Group.
– IFRIC 12 Service Concession Arrangements (effective from January 1, 2008)
This Interpretation applies to service concession operators and explains how to account for the
obligations undertaken and rights received in service concession arrangements. No entity of the Group
is a public service provider and hence this Interpretation has no impact on the Group.
Where necessary, the comparatives have been reclassified or extended from previously reported results to
take into account any changes in presentation made in the annual report or these interim financial statements.
�o Material Change
There has been no material change in the business or financial situation of the Dufry Group since June 30,
2008, except as disclosed elsewhere in this Listing Prospectus.
33

HUDSO�
All figures in this section are denominated in US dollars if not indicated otherwise.
Basis of Presentation and Accounting Policies
Hudson’s consolidated financial statements have been prepared on a historical cost basis. The consolidated
financial statements are presented in US dollars and all values are rounded to the nearest thousand (US$ 000)
except when otherwise indicated.
The consolidated financial statements of Hudson Group have been prepared in accordance with Generally
Accepted Accounting Principles (GAAP).
The consolidated financial statements comprise the financial statements of Hudson and its subsidiaries as of
the closest Sunday to the end of December each year. Subsidiaries are fully consolidated from the date on which
the Group obtains control, mostly being the date of acquisition, and continue to be consolidated until the date
that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period
as the parent company, using consistent accounting policies. All intra-group balances, income and expenses and
unrealized gains and losses resulting from intra-group transactions are eliminated in full.
Minority interests of consolidated subsidiaries are identified separately from the Group’s equity therein.
Minority interests consist of the amount of those interests at the date of the original business combination and
the minority’s share of changes in equity since the date of the combination. Losses applicable to the minority, in
excess of the minority’s interest in the subsidiary’s equity, are allocated against the interest of the Group, except
to the extent that the minority has a binding obligation and is able to make an additional investment to cover the
losses. The share of the minorities in the net earnings of the Group is also presented separately.
Factors Affecting Results of Operation
General
Hudson’s revenues are generated by its travel retail sales and advertising revenues. In addition to the cost of
goods sold, the Hudson Group’s major operating expenses are concession and other periodic fees associated
with its retail operations and personnel costs. The Hudson Group aims to generate top-line growth while also
improving its gross margin and developing a cost-effective operations structure to increase returns.
Sales
Hudson Group’s sales growth has been, and is expected to continue to be, a result of its ability to
consistently generate best-in-class revenue per enplaned passenger, win new contracts, and renew existing
contracts.
Many of Hudson’s operations have seen a significant increase in per customer spend in 2008. Some of this
increase is a result of Hudson’s initiative to expand its snack and beverage offering as airlines began to charge
for, or eliminate such amenities. Hudson also increased the size and pricing of selected snacks which provides
customers with more value. Additionally, in May, sales associates began proactively selling bottled water at the
cash register to customers who were not already purchasing water.
Furthermore, new operations in Newark Penn Station, Cleveland, Nashville and Ft. Lauderdale as well as
the addition of beverage and easing of strict street pricing to the contract in Calgary, a 56 square meters gift
store addition to the post security newsstand at JFK Terminal 4 and renovated in-line space in the Jet Blue
concourse of Terminal C Logan had a positive impact on sales in 2008.
In addition, Hudson seeks to grow sales by expanding its current locations. Throughout 2008 Hudson has
achieved the following:
Lease Awards:
Chicago – CitiGroup Center – Awarded 2 news and gift locations and one Euro Café
Cleveland Hopkins International Airpot – BAA awarded Hudson all newsstands and the Rock and Roll
Hall of Fame store
34

Newark – Penn Station – NJ Transit awarded Hudson a bus and train station location
Newark – Terminal A –Westfield recommended Hudson to the PANYNJ for operation of 5
newsstands, Papyrus and Taxco Sterling
Newark – Terminal C – Westfield awarded Hudson a bookstore and newsstand. These were existing
stores, but Hudson won a new competitive RFP process
San Jose – Package 2 – Awarded news/gift, book, and specialty retail locations
Vancouver – Domestic Terminal – Awarded a large news/gift location and 6 retail concepts
Vancouver – Domestic Terminal – Awarded 2 specialty retail concepts
Vancouver – Pier Expansion – Awarded a large Hudson News/Euro Café
Recent contract extensions include: Anchorage, Burlington, Calgary, Charleston, JFK Terminal 1,
Manchester, Norfolk, and Vancouver Transborder.
Management also expects growth opportunities to arise for Hudson:
as existing concessions operated by other travel retailers come up for renewal;
as the Hudson Group enters new markets; and
from consolidation in the global travel retail sector through, for example, bolt-on acquisitions.
Gross Margin and Advertising Income
Management views the cost of goods sold and the resulting gross margin as an important measurement of
Hudson’s performance as a retailer. The cost of goods sold at any concession is influenced by the Hudson
Group’s centralized supplier negotiation strategy, which includes the segmentation of suppliers by volume and
active central management of these relationships. Management believes that the recent implementation of new
information technology systems will assist further in gaining gross margin benefits from this strategy by
providing a higher level of centrally available information which will assist negotiation. In addition, the
reorganization of the Hudson Group’s logistics function is expected to deliver further positive gross margin
effects.
The Hudson Group’s pricing policy and product mix in any given location also affects a concession’s gross
margin and, as such, the relationship between product mix, particularly higher margin products, and gross
margin is an important one. To that end, the Hudson Group aims to allocate retail space, as much as possible, to
the more profitable product categories.
Hudson’s relationships with its suppliers also generate advertising income, positively affecting the Hudson
Group’s gross margin. Hudson’s generation of advertising revenue is dependent on its US and Canadian
presence in the major designated market areas (DMA’s) which it may offer advertising opportunities.
Operating Expense Structure
The operating expense structure is important to Hudson’s profitability. After the cost of goods sold,
concession and other periodic fees associated with its retail operations are Hudson’s principal expense.
In return for granting the retailer the right to operate its concession, the airport authority or other travel
facility landlord typically receives a fee that is either fixed or based upon the number of passengers passing
through the airport, the amount of sales at the concession, the floor area of the concession or a combination of
these factors. Certain concession agreements provide for a minimum annual guaranteed payment. Currently, the
majority of Hudson’s concessions provide for a minimum annual guaranteed amount that is either fixed, based
upon the number of passengers using an airport or other travel channel, or based upon current budgets or past
results. As a result, the Hudson Group’s profitability may be adversely affected where revenues decrease at
concessions with a fixed minimum annual guaranteed amount without a corresponding decrease in concession
fees payable.
35

The Hudson Group’s selling expenses, such as concession fees, credit card commission and packaging, are
variable in nature as they generally move in line with sales. In contrast, general and administrative expenses,
such as repairs and maintenance, rent, general administration and marketing are fixed in the short term. In
addition, personnel costs, which represent a significant expense, comprise fixed and variable components as
bonuses are based upon the performance of the business.
Seasonality
Further, and irrespective of the prevailing economic climate, passenger flows and the Hudson Group’s sales
are seasonal. In North America, the highest levels of sales and profits are during the months of June, July and
August. In addition, certain seasonal events affecting sales, such as Easter, occur on different dates each year.
As Hudson increases its working capital prior to these peak sales periods to carry higher inventory levels and
increase its sales staff levels to meet anticipated demands, its results of operations would be affected negatively
by any substantial decrease in sales during the traditional peak selling periods.
Currency Fluctuations
There is minimal fluctuations that will effect the financial results of Hudson Group. The majority of
locations are located in the United States with operations in 3 airports located in Canada.
Depreciation and Amortization
Hudson’s depreciation and amortization policies may also affect its profitability. The Hudson Group
depreciates property, plant and equipment on a straight line basis over the life of the concession agreement with
adjustments made for assets replaced or disposed of. Intangible assets with indefinite useful lives are tested for
impairment annually either individually or at the cash-generating unit level and are also reviewed annually to
determine whether indefinite life assessment continues to be supportable. If not, the change in useful life
assessment from indefinite to finite is made on a prospective basis. Intangibles with indefinite useful lives are
not amortized.
Financial Result
The Hudson Group’s profitability may be affected by the net amount of interest paid, interest earned,
foreign exchange gains or losses from foreign exchange translation effects and gains or losses from the sale of
subsidiaries.
Income Taxes
Income taxes for the Joint Ventures are taxed at the partner level. Any profit or loss is passed through to
the partner who pays the taxes on their respective returns. The Hudson corporate entities are taxed on their Joint
Venture interest plus the wholly owned locations.
Minorities
Hudson’s business model places importance on the involvement of local partners in its concessions. While
the Hudson Group benefits from the contribution that a local partner brings to the operation of a concession, the
involvement of such partners in the ownership of Hudson’s operating subsidiaries reduces the net earnings of
the Hudson Group.
Significant Accounting Estimates and Assumptions
The preparation of the Group’s financial statements requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of
contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could
result in outcomes that could require a material adjustment to the carrying amount of the asset or liability in the
future.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance
sheet date, which may have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year, are discussed below.
36

Brands and goodwill
The Group tests brands and goodwill annually for impairment. The underlying calculation requires the use
of estimates.
Income taxes
The Group is subject to income taxes in numerous jurisdictions. Significant judgment is required in
determining the provision for income taxes. There are many transactions and calculations for which the ultimate
tax assessment is uncertain. The Group recognizes liabilities for tax audit issues based on estimates of whether
additional taxes will be payable. Where the final tax outcome is different from the amounts that were initially
recorded, such differences will impact the income tax and deferred tax provisions in the period in which such
assessment is made.
Recent Developments
As part of the Acquisition of Hudson by Dufry, the outstanding credit facilities pertaining to the purchase of
a significant stake in Hudson by Advent have been repaid. As of the date of this Listing Prospectus, the debt that
will be on the books and records will be an intercompany loan to Hudson.
Results of Operations
Comparison of the twenty-six weeks ended June 29, 2008 and July 1, 2007
Turnover. Hudson continued its growth trend for another consecutive half year. In the first half of 2008,
turnover increased by US$ 14.2 million. Turnover in comparison to the first half of 2007 grew by 4.7 percent to
US$ 319.7 million. In the same period, sales increased by US$ 13.3 million. Of this, organic growth accounted
for 4.3 percent while new project contributed 0.1 percent to sales growth. Sales in comparison to the first half of
2007 grew by 4.4 percent to US$ 317.9 million. Using the same accounting policies as Dufry, Hudson’s
turnover would have reached US$ 337.5 million in the first half of 2008 and US$ 326.8 million in the
corresponding period 2007.
Gross Profit. Gross profit reached US$ 185.0 million for the first half of 2008, an increase of approximately
7 percent compared to US$ 172.6 million in the corresponding period of the previous year. The gross margin
including advertising income for the six months ended June 30, 2008 was approximately 57.9 percent, compared
to approximately 56.5 percent for the same period in 2007. Using the same accounting policies as Dufry,
Hudson’s gross margin for the six months ended June 29, 2008, would have been 54.8 percent while
52.8 percent for the same period of 2007.
Selling, General and Administrative Expenses. Selling, General and Administrative Expenses increased by
US$ 7.1 million compared to the first half of 2007, reaching US$ 83.8 million. To break this down, occupancy
expenses reached US$ 59.9 million and amounted to 18.6 percent of turnover for the six months ended June 30,
2008 compared to 18.4 for the same period in 2007. These expenses consist of concession and other periodic
fees paid to airport authorities and other travel facility landlords in connection with the Hudson Group’s retail
operations. General expenses for the six months ended June 30, 2008 represented 7.8 percent of turnover
compared to 6.7 percent for the same period in 2007. In absolute terms, general expenses increased by 4.1
million compared to the same period in 2007, or approximately 19.9 percent, and reached US$ 34.8 million.
Payroll and Payroll-related Expenses. Payroll and payroll-related expenses, expressed as a percentage of
turnover, increased from 19.2 percent for the six months ended June 30, 2007 to 21.3 percent for the same
period in 2008. In absolute terms, personnel expenses increased by approximately US$ 9.8 million for the six
months ended June 30, 2008 compared to the same period in 2007, or approximately 16 percent. Part of the
increase, approximately US$ 2.5 million is due to a change in timing of accruals for bonuses and other fringes.
In the past, these accruals were adjusted in the last month of the year.
EBITDA. EBITDA for the first half of 2008 decreased by 9.7 percent to US$ 32.5 million compared to US$
36.0 million for the respective period of 2007. The Hudson Group’s EBITDA margin is affected this year by a
change in accounting accruals (in particular by accruing more exactly on a quarterly basis) and one-time charges
that related to the purchase of a significant stake in Hudson by Advent. Adjusted EBITDA for the effects
described above would reach US$ 35.6 million as of June 29, 2008 (net of one-time charges related to the
37

purchase by Advent) and US$ 32.3 million in the same period of 2007 (with equivalent accrual policy to 2008),
representing an increase of 10.2 percent.
Depreciation and Amortization Depreciation and amortization represented 4.6 percent of turnover for the
six months ended June 30, 2008 compared to 4.5 percent for the same period in 2007. Depreciation remained
almost stable and amounted to US$ 11.8 million, reflecting customary annual depreciation of property and
equipment. Amortization remained almost stable and amounted to US$ 2.8 million in the first half 2008 from
3.1 million in the respective period in 2007.
EBIT. In the first six month of 2008, EBIT reached US$ 17.1 million compared to US$ 22.3 million in the
respective period of 2007. Adjusted for one-off effects, which include one-time expenses relating to the
purchase of a significant stake in Hudson by Advent in March 2008 and a change in accounting accruals, EBIT
would have reached US$ 20.2 million in 2008 and US$ 18.6 million in 2007.
Taxes. The Hudson Group’s tax expense is based on the operating profit and net financial income and
expenses of each subsidiary as taxed in its jurisdiction of operation. The taxable income of the many Joint
Ventures are passed through to the partners of each Joint Venture, therefore the tax expense is minimal for the
Joint Venture’s. The tax expense for the Hudson corporate entities is mainly for gross receipts and capital tax
since the projection for taxable income for Hudson is a taxable loss.
�et Earnings. The Hudson Group recorded a net profit after minorities of US$ 4.8 million for the six
months ended June 30, 2008 compared to a net profit after minorities of US$ 17.2 million for the same period in
2007. The decrease in net profit was largely due to increased interest expense on higher debt on the balance
sheet as compared to 2007 and one-time expenses relating to the purchase by Advent in March 2008 and a
change in accounting accruals as compared to 2007. Net earnings adjusted for these two effects described above
would have reached US$ 7.8 million in 2008 and US$ 13.5 million in 2007.
Comparison of business years ended December 30, 2007 and December 31, 2006
Turnover. In 2007, turnover increased by 17.3 percent to US$ 629.9 million from US$ 536.8 million in
2006. Sales reached US$ 628.3 million, which represents an increase of 17.2 percent versus the previous year.
Organic growth accelerated by 13.7 percent was driven partially by passenger growth. New concessions and
expansions contributed 4.0 percentage points. Using the same accounting policies as Dufry, Hudson's turnover
would have reached US$ 665.9 million in 2007 and US$ 570.4 million in 2006.
Gross Profit. In 2007, gross profit increased by 19.0 percent to US$ 365.4 million from US$ 307.1 million
in 2006. Gross margin increased by 0.8 percentage points to 58.0 percent in 2007 from 57.2 percent in 2006.
The improvement in gross margin reflects Hudson’s focus on a number of important factors ranging from
changes in the product mix towards more profitable product categories and better negotiations and relations with
its suppliers. Using the same accounting policies as Dufry, Hudson's gross margin in 2007 would have been
54.9 percent while 53.8 percent in 2006.
Selling, General and Administrative Expenses. Selling, General and Administrative Expenses increased by
US$ 19.0 million compared to 2006, reaching US$ 159.6 million. To break this down, occupancy expenses
reached US$ 114.6 million or 18.3 percent of turnover versus US$ 102.1 million or 19.1 percent in 2006. The
decrease of the occupancy expenses as a percentage of turnover was primarily due to increased sales which
decreased the minimum annual rent expense. The increase in occupancy expenses in absolute terms in 2007
compared to 2006 of US$ 12.5 million was primarily due to higher concessions and rental fees due to increased
sales at those locations. General expenses amounted to US$ 45.0 million in 2007 against US$ 39.5 million in
2006. As a percentage of turnover, general expenses remained constant at 7.1 percent.
Payroll and Payroll-related Expenses and Other Bonuses. In 2007, personnel expenses accounted for US$
150.4 million compared to US$ 102.1 million in 2006 showing an increase of 47.3 percent. This increase is
mainly due to acquisitions effects and new operations added to the Group and a one-time bonus accrual to
executives in the amount of US$ 26.0 million. As of December 31, 2007, the number of employees (FTE’s)
stood at approximately 4,132 compared to 3,830 at the end of 2006, an increase of 7.9 percent.
EBITDA. In 2007, EBITDA decreased by 15.1 percent to US$ 51.2 million from US$ 60.3 million in 2006.
EBITDA margin decreased by 3.1 percentage points to 8.1 percent from 11.2 percent in 2006. The margin
decrease was mainly due to the one-time bonus of US$ 26 million and transactions fees of US$ 1.3 million
relating to the purchase of a significant stake in Hudson by Advent. Without the above one-off effects, and using
38

the same accounting policies as Dufry, EBITDA margin would have been 11.8 percent in 2007 and 10.6 percent
in 2006.
Depreciation and Amortization. Depreciation and amortization amounted to 4.1 percent of turnover in 2007
compared to 5.3 percent of turnover in 2006. Depreciation and amortization lowered to US$ 26.0 million in
2007 compared to US$ 28.5 million in 2006. The decrease mainly stems from amortization charges which
decreased to US$ 5.0 million in 2007 from US$ 8.3 million in 2006 and are due to the lease amortization of the
WH Smith acquisition in 2003 starting to expire.
EBIT. EBIT decreased by 27.6 percent and amounted to US$ 25.2 million in 2007 versus US$ 34.8 million
in the previous year. The decrease is mainly due to the one-time bonus of US$ 26.0 million and other expenses
relating the purchase by Advent in March 2008.
�et Earnings. The Hudson Group recorded a net profit after minorities of US$ 15.8 million for the year
ended December 30, 2007 compared to a net profit after minorities of US$ 25.4 million for the same period in
2006.
Liquidity and Capital Resources
General
Hudson’s principal source of liquidity has been and is expected to continue to be cash generated from
operations together with its short- and long-term credit facilities. Its principal liquidity requirements have been
for capital expenditures, in particular to finance the fitting out of new shops and the renovation of existing
shops, as well as any upfront payments associated with new concessions, and working capital for inventories.
Management aims to maintain the Hudson Group’s leverage at levels that will permit it to access the same levels
of bank financing that it may access currently.
Liquidity and capital resources
As of December 30, 2007 Hudson’s debt position amounted to US$ 34.9 million compared to US$ 61.1
million by the end of 2006. The strong cash generation within the Group allowed reducing debt. Equity
increased to US$ 109.8 million as of December 30, 2007 from US$ 102.5 million at the end of the previous year
before minority interest.
As of 29 June 2008, net debt amounted to US$ 390.0 million compared to US$ 34.9 million at 30
December, 2007. The increase is due to Hudson’s new credit facility as a result of Advent’s purchase of a
significant stake in Hudson in March 2008.
Cash Flows from Operating Activities
Hudson’s cash generated from operations amounted to US$ 87.4 million for the year ended December 30,
2007. In 2006, the Hudson Group’s cash generated from operating activities was US$ 63.5 million. The increase
in 2007 was due primarily to increased sales and a significantly improved EBIT.
For the six months ended June 29, 2008, Hudson’s cash generated from operations amounted to US$ 11.2
million as compared to US$ 29 million in 2007. The decrease is mainly due to special bonuses to key executives
for past services in 2007 paid in 2008 in the amount of US$ 26 million.
Cash Flows from Investing Activities
Capital expenditure is Hudson’s primary investing activity. This includes spending on the renovation and
maintenance of existing shops and the fitting out of new shops which is depreciated over the life of the lease.
When contemplating an investment in a new concession, Hudson focuses on profitable growth as its key
investment criterion.
The Hudson Group invested approximately US$ 34.2 million in 2007 and US$ 34.0 million in 2006 in
tangible capital expenditure projects. For the six months ended June 30, 2008 the Hudson Group spent
approximately US$ 18.3 million on property, plant and equipment for the refurbishment of existing shops and
fitting out of new operations. Also in 2008, there is an intangible asset relating to the purchase of a significant
stake in Hudson by Advent which is approximately US$ 681.9 million.
39

Credit Facilities
The Hudson Group has no loans outstanding apart from intercompany loans granted by Dufry as of the date
of this Listing Prospectus. All credit facilities outstanding as of June 29, 2008 have been repaid.
Contractual Obligations
The Hudson Group is obliged to make minimum annual guaranteed concession payments under the
majority of its concession agreements. Although some payments are fixed, the majority of the minimum annual
guaranteed payments provided for in the Hudson Group’s concession agreements are dependent upon passenger
numbers, sales or a combination of both and, as a result, cannot be determined by the Hudson Group in advance.
In 2007, US$ 81.9 million of the Hudson Group’s US$ 12.4 million concession fees were attributable to
concession agreements providing for a fixed minimum annual guaranteed amount.
Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous year. There have been no
changes.
The financial statements of the financial year 2006 were restated. Hudson determined that the account
balances of accrued vacation, income tax, insurance accruals and the omission of a receivable were misstated
due to incorrect estimates. Hudson has recorded prior period adjustments related to such determinations. This
resulted in a decrease of equity of US$ 2.1 million.
�o Material Change
There has been no material change in the business or financial situation of the Hudson Group since June 30,
2008, except as disclosed elsewhere in this Listing Prospectus.
40

The Travel Retail Market
I�DUSTRY OVERVIEW
Travel retailing differs from traditional retailing in ways that have a significant impact on operations. The
client base has a different buying behaviour compared to the high street and tends to be more affluent. From a
logistics perspective, it is more demanding: the customer is at the shop only once, with no ability to come back
in the event of lack of stock; furthermore, store locations have limited access (in secured areas). The market is
characterised by captive customers, who generally have above average purchasing power and in most cases have
the time to shop while travelling.
In travel retail, customers have access to both duty-free and duty-paid shops, depending on their destination.
In general terms, duty-free shops are offering goods to travelers that are exempt from import duties, excise
taxes and other taxes. Duty-free markets differ from domestic markets by offering brands and high-quality
products in a high-end environment at lower prices. Duty-free shops are located in airports, onboard aircrafts,
ferries and cruise lines as well as at international land border crossings. In airports, there might be departure and
arrival shops.
Duty-free departure shops are located at the restricted departure area of international airports or seaports.
Customers must be traveling internationally, leaving the country in order to have access to these shops. Purchases
made in departure shops are not subject to quantity restrictions but they are subject to import restrictions in the
country of destination. Import restrictions also apply to purchases made on board.
Duty-free arrival shops are located at the restricted arrival area of international airports or seaports.
Customers must be returning from international travel in order to have access to these shops. The growing
demand of arrival shopping is being driven by stricter security measures in airport departure areas and
passengers’ preference to carry fewer items on board.
Duty-paid shops are focused on domestic passengers and are formatted as gift or convenience shops. All
import duties apply to the products sold in these shops. They are located in both international and domestic
airports and train stations and can be found airside (in the restricted areas of airports) but more typically located
landside (in the public areas of airports).
The worldwide duty-free and travel retail market, comprising sales through distribution channels principally
aimed at travelers, such as shops in airports, ports and railway stations and sales on board aircrafts, ferries and
cruise liners, recorded sales of approximately US$ 34 billion for the year ended December 31, 2007. The dutyfree
and travel retail market grew approximately 17 percent in 2007 in local currencies, according to industry
analyst Generation AB (on the basis of a translation of local currency sales into US dollars). In local currency
terms, worldwide duty-free travel retail sales grew by 12 percent in 2007. Except where noted, the travel retail
sales and growth numbers discussed in this Listing Prospectus are translated into US dollars and therefore
significantly affected by changes in currency, particularly the weakening of the US dollar in recent years.
The worldwide duty-free and travel retail market is fragmented and sales vary considerably among
geographic regions. According to industry analyst Generation AB, Europe is the largest single regional market
for travel retail services representing about 42 percent of global travel retail sales in 2007. In 2007, travel retail
sales in Europe grew 18 percent. The second largest market is the region Middle East, Asia & Oceania, which
accounted for 32.9 percent of travel retail sales in 2007, having grown 18.4 percent in 2007. The Americas
represented 23.7 percent of travel retail sales in 2007, having grown 14.2 percent in 2007. Demand for travel
retail services has also increased in Africa, although its share of the total market remains small at 1.3 percent of
travel retail sales in 2007.
Organic sales growth in travel retailing is principally driven by passenger growth, pricing and productivity,
which in turn is a continuation or penetration of the percentage of passengers that make a purchase at a travel
retail shop, and average spend per transaction. The volume of travel retail sales bears a strong correlation to the
volume of passenger traffic, and, accordingly, the travel retail market is highly sensitive to geopolitical and
economic developments.
41

The following chart shows the global duty-free and travel retail sales by region and its growth from 2003 to
2007 and its estimated growth for the years 2008 to 2012.
(US$m)
60,000
50,000
40,000 40,000
30,000
20,000
10,000
0
CAGR CAGR03-07 03-07 = = 13.5% 13.5%
0.13%
0.13%
24%
0.13%
25%
0.13%
25%
0.13%
24%
25%
47%
45% 43%
5%
42%
6%
43%
6%
28% 30% 27% 27% 27%
2003 2004 2005 2006 2007 2008F 2009F 2010F 2011F 2012F
Source: Generation AB.
CAGR: Compound Annual Growth Rate.
Asia Pacific Middle East Europe Americas Africa Forecast data
42
CAGR CAGR08-12 08-12 = = 9.3% 9.3%
Accounting for 43 percent of global travel retail sales, Europe is the largest market worth over US$ 14
billion. Growth in this region is driven by on-going low cost carrier development as well as strong economic
growth in Eastern Europe where several countries (such as Poland, Czech Republic and Hungary) are reaping
the benefits of a growing economy coupled with a liberalised air transport market. With regards to air traffic,
Europe saw demand rise from 5.3 percent in 2006 to 6.0 percent in 2007, reflecting steady economic growth and
expansion on long-haul routes to Asia and the Middle East.
The Americas travel retail market, the third largest, is worth US$ 8 billion and commands a market share of
24 percent. This area demonstrated strong growth recently, with a compound annual growth rate from 2003 to
2007 of 12 percent. Much improved duty free retail standards, the arrival of political stability in some countries
(such as Brazil), the strength of local currencies against the weak US dollar and airports attaching higher priority
to retail are the prime factors for growth in the region. North America recorded 5.5 percent growth in terms of
air traffic in 2007. This continues the growth of 5.7 percent recorded in 2006 as the region’s carriers transfer
capacity to more lucrative international markets.
Worth over US$ 9 billion, representing a 27 percent market share, the region Asia Pacific has recently
surpassed the Americas as the second largest travel retail market. South Korea is the second largest country for
travel retail (after the UK) and is alone worth US$ 2 billion. As average household incomes rise rapidly, air
travel becomes more affordable and many believe this region will drive global travel growth over the next 25
years, becoming the largest market by 2025.
Africa and the Middle East are relatively small regions with a combined value of US$ 2 billion. However,
the Middle East is expected to exhibit some of the strongest growth in the market, and it is considered that
African countries with high tourist appeal have long term growth potential In terms of air traffic, carriers in the
Middle East recorded 18.1 percent increase in passenger demand since 2006 continuing a four-year trend of
double digit growth. This was the highest among all regions, resulting from strong regional economies, the
impact of oil wealth, expanded capacity and new routes. African carriers recorded above average growth of 8
percent reflecting the strong economic growth and successful market liberalisation in parts of the continent.

The following table shows the total amount of worldwide duty-free and travel retail sales as well as the
regional distribution of such sales from 2002 to 2007 based on sales translated from local currencies into US
dollars.
43
For the year ended December 31,
Region 2002 2003 2004 2005 2006 2007
(in US$ millions)
Europe ......................................... 8,820 9,604 11,199 11,407 12,115 14,299
Americas ...................................... 4,951 5,010 5,954 6,676 7,056 8,056
Africa ........................................... 247 262 322 352 380 457
Middle East, Asia & Oceania ...... 5,982 5,624 7,525 8,565 9,449 11,188
Total Worldwide Travel Retail .... 20,000 20,500 25,000 27,000 29,000 34,000
Source: Generation AB.
The following table shows the percentage of worldwide duty-free and travel retail sales from 2002 to 2007
by region based on sales translated from local currencies into US dollars.
For the year ended December 31,
Region 2002 2003 2004 2005 2006 2007
(in percent)
Europe ......................................... 44.1 46.9 44.8 42.2 41.8 42.1
Americas ...................................... 24.8 24.4 23.8 24.7 24.3 23.7
Africa ........................................... 1.2 1.3 1.3 1.3 1.3 1.3
Middle East, Asia & Oceania ...... 29.9 27.4 30.1 31.7 32.5 32.9
Total Worldwide Travel Retail .... 100.0 100.0 100.0 100.0 100.0 100.0
Source: Generation AB.
The following diagram shows the percentage of global and travel retail sales expressed in US dollars by
travel channel in 1997 and 2007.
1997 2007
Source: Generation AB.
Airport Retailing
General
Airport retailing is a distinct sector of the travel retail market. According to industry analyst Generation AB,
sales in the airport retail segment represented approximately 57 percent of the duty-free travel retail market in
2007.
According to analyst Verdict, global airport retailing, comprising the duty-free and the duty-paid sector, is a
US$ 27.1 billion market in 2007 and the fastest growing channel in global retail aside from the Internet. Despite
the economic slowdown, airport retailing should expand by 11.0 percent in 2008, with growth fastest in

emerging markets. The key driver of growth are increasing passenger numbers due to increased affluence,
growing tourism, rapidly expanding airline networks and new routes (especially those of low cost carriers) and
an increasing propensity for business travel as a result of globalization.
The next five years will see continued growth in both mature and emerging markets. Global airport retailing
is predicted to remain a high growth sector enjoying double digit growth in each year to 2012. The growth rate
of 88.9 percent from 2002 to 2007 might be almost matched with a forecast growth rate of 72.9 percent over the
period 2007 to 2012. The global airport retailing market will grow across all regions though there will be
degrees of variation.
The following table shows global airport retailing market size by region and worldwide from 2002 to 2007.
44
For the year ended December 31,
Region 2002 2003 2004 2005 2006 2007
(US$ million)
Europe ................................................................
5,977 6,700 7,925 8,878 10,021 11,024
Americas ................................. 4,085 4,582 5,358 5,829 6,467 6,916
Asia-Pacific ................................ 3,564 3,664 4,521 4,777 5,182 5,922
Middle East & Africa ................................ 694 902 1,230 1,697 2,351 3,193
Total ................................................................ 14,320 15,848 19,034 21,181 24,022 27,055
Source: Verdict Research.
The following table sets forth global airport retailing growth by region and worldwide from 2002 to 2007.
For the year ended December 31,
Region 2002 2003 2004 2005 2006 2007
(Percent)
Europe ................................................................ 7.0 12.1 18.3 12.0 12.9 10.0
Americas ................................. -2.4 12.2 16.9 8.8 10.9 6.9
Asia-Pacific ................................ 5.7 2.8 23.4 5.6 8.5 14.3
Middle East & Africa ................................ 34.9 30.0 36.3 38.0 38.5 35.8
Total ................................................................ 4.9 10.7 20.1 11.3 13.4 12.6
Source: Verdict Research.
The following table shows global airport retailing growth forecast from 2008 to 2012.
2008 2009 2010 2011 2012
Total ................................................................ 11.0 13.5
(Percent)
12.1 10.6 10.7
Source: Verdict Research.
Sales through duty-free specialists in airports reached US$ 20.2 billion in 2007. Duty-free specialist sales
continue to underpin global airport retailing, with the proportion of duty-free to duty-paid remaining constant at
around 3:1. However, global duty-paid specialists have also grown strongly with sales reaching US$ 6.9 billion
in 2007.

The following table shows the global airport retailing market size of duty-free and duty-paid specialists
from 2002 to 2007.
45
For the year ended December 31,
2002 2003 2004 2005 2006 2007
(US$ million)
Duty-free specialists ................................ 10,586 11,615 14,135 15,652 17,738 20,180
Duty-paid specialists ................................ 3,734 4,233 4,898 5,528 6,284 6,875
Total ................................................................ 14,320 15,848 19,034 21,181 24,022 27,055
Source: Verdict Research.
Airport retailing differs from traditional, ‘High Street’ retailing in a number of important ways. Unlike the
unrestricted access to potential customers that ‘High Street’ retailers enjoy, the airport retailer has a captive
audience of potential customers for a temporary period while the customer is waiting to board an aircraft. In
addition, while airport retailers may have a more limited inventory than ‘High Street’ retailers, it is generally
made up of high-margin, luxury goods, unlike ‘High Street’ retailers that may carry lower margin products as
part of its inventory.
The travel retailer’s customers also differ from the traditional retailer’s customers. Although travelers’
buying behavior could be negatively affected by stress caused by enhanced security checks and the need to
reach a departure gate on time, increased security regimes also incentivize travelers to arrive well before the
departure of their flights, which allows more time for shopping. Further, airport retail customers generally come
from the more affluent sectors of the population who can afford to travel, and those consumers on holiday may
feel less constrained and more willing to engage in impulse purchases.
As described below under “—Trends,” airport retailing is being transformed by a significant increase in
passenger numbers, the provision of additional retail space and a broader product range. The ability to offer
duty- or tax-free sales has traditionally been a feature of the travel retailer’s listings. In recent years, however,
the travel retailers’ product range has become increasingly diversified and has focused on non-traditional
product categories such as confectionary, accessories and electronics, which together account for an increased
portion of airport retail sales.
Trends
Recent trends affecting the airport retailing sector include:
Growth in passenger numbers: In the past decade, there has been a significant increase in both domestic and
international air travel, due largely to improvements in, and greater accessibility of, air transport, as well as
greater amounts of disposable income and the increased need for travel as a result of the internationalization of
many businesses and industries. In 2007, the total number of air travelers increased by 6.4 percent to nearly 4.8
billion passengers, even though real worldwide gross domestic product only grew by 4.9 percent. Looking to the
future, global passenger volumes are predicted to surpass the 5 billion mark by 2009, reaching 11 billion – or 30
million passengers per day – by 2027, according to the Airports Council International, Global Traffic Forecast
Report 2008 - 2027 prepared by the International Civil Aviation Organization. While over the next two years,
passenger growth may slow worldwide, reflecting the current uncertainties in the world market, it is likely to
pick up again in 2010. Medium and long-term confidence in growth remains strong within the airport industry.
Over the next 20 years, world passenger volumes is, according to Airports Council International, expected to
rise by 4.2 percent annually, mainly driven by international traffic growth (4.5 percent per annum). In spite of
the important domestic growth forecast for India and China, domestic markets are expected to grow only by 4.1
percent per annum. With a volume of 6.2 billion passengers in 2027 domestic markets are expected to remain
larger than international which will account for 4.7 billion travellers.

The following chart shows the annual passenger volume of the year 2005 and the passenger volume growth
forecast up to 2015.
Annual passengers (millions)
8,000
6,000
4,000
2,000
0
4,115
4.9%
4,317
5.7%
4,565 4,793 5,024
4,565 4,793 5,024
4,565 4,793 5,024
46
5.0%
4.8%
4.6%
5,255
6,408
4.0%
2005 2006F 2007F 2008F 2009F 2010F 2015F
Pax Annual growth
2006 2007 2008 2009 2010 2015
Africa 7.8% 8.6% 7.5% 7.3% 7.0% 5.5%
Asia/Pacific 8.5% 8.6% 7.9% 7.7% 6.8% 5.7%
Europe 6.2% 5.4% 4.6% 4.2% 4.2% 3.6%
Latin America/Caribbean 6.3% 6.8% 5.3% 4.9% 5.0% 4.5%
Middle East 12.6% 7.0% 5.3% 4.9% 4.3% 4.1%
North America 0.6% 3.7% 3.1% 3.1% 3.1% 2.9%
World 4.9% 5.7% 5.0% 4.8% 4.6% 4.0%
Source: Airports Council International, Global Traffic Forecast 2006-2025.
Expanded and more sophisticated retail facilities: In recent years, increases in passenger numbers have led
to the need to develop larger airport facilities. Airport authorities have also increasingly focused on the
commercial potential of their assets in connection with privatizations and other methods of financing
infrastructural developments. Besides, retailing is increasingly regarded as intrinsic to the success of an airport.
Due to the ongoing privatization of airports and the increasing competition for airlines, retail is becoming a
principal revenue generator for airports. In Europe, where the structure of the duty-free market in the European
Union was altered on June 30, 1999 with the effect that the sale of duty-free products to those traveling between
member states of the European Union was no longer possible, airport retailers were forced to develop new retail
concepts to supplement the traditional duty-free retail approach. These developments have led to a more
sophisticated approach to airport retailing resulting in the identification of new retailing opportunities and an
overall increase in the amount of allocated retail space within airports.
Changes in product mix: Traditionally, airport retail sales were dominated by products subject to high
special taxes such as spirits and tobacco. Although sales of spirits and tobacco have remained stable in absolute
terms, the significance of these categories as a proportion of total sales has declined worldwide. In contrast,
sales of perfumes and cosmetics, confectionary and other fine foods, and other goods, such as electronics, have
increased as a proportion of total sales. The category comprising jewelry, accessories, leather goods and other
goods currently represents approximately one-third of worldwide travel retail sales and is expected to become
even more important over the next decade.
6%
5%
Annual growth rates
4%
3%
2%
1%
0%

The following diagrams show the percentage of sales by product categories of global airport sales in 1995
and 2007.
1997 2007
Source: Generation AB.
Increasing spend per head: Over the past years, spend per head increased steadily according to industry
analyst Verdict. Spend per head in Europe rose from US$ 7.00 in 2005 to US$ 7.80 in 2008 (estimated). In the
Americas, spend per head rose in the same period from US$ 3.90 to US$ 4.80. Asia-Pacific spend per head was
US$ 5.80 in 2005 and after a dip in 2006 and 2007 it recovered to US$ 5.00 in 2008 (estimated). The relative
dip in Asia-Pacific spending, relative to passenger numbers is partly due to the relatively lower spend per head
found in the emerging markets of India and China. The Middle East & Africa spend per head has typically been
more than double the global average between 2005 and 2008 and is expected to continue rising, being
US$ 13.30 in 2008 (estimated), relative to a global spend per head of US$ 6.40 (estimated).
The Role of Airport Authorities
The terms of an airport retailer’s operations, or ‘concessions’, are generally determined by agreement with
the owner of the airport facility, typically the local airport authority. Concessions are generally awarded in a
public tender process or pursuant to private negotiation. The airport authority generally determines the number
and type of concessions to be granted and the terms of the concessions. The terms of individual concessions,
however, may vary considerably from facility to facility.
Concessions may be broken down by type of shop (for example, general duty-free shops selling wines and
spirits, tobacco, perfumes and cosmetics or specialty shops selling specific types of goods) or by physical
location (for example, a specific allocation of space within a terminal or rights to operate an entire terminal
facility). The airport retailer may also obtain the right to allocate the retail space within the facility, or part
thereof, at its discretion. The duration of a concession agreement may vary considerably depending on the
location and type of facility with the industry average being, in Management’s experience, approximately five
years.
An airport authority’s requirements will differ depending upon a number of factors. On the one hand,
airport authorities in less developed markets often need to develop a retail operation from inception, and may
wish to partner with an experienced travel retailer to develop its airport retail operations. Factors such as a
retailer’s knowledge of designing all or a major part of the airport’s retail space and the retailer’s experience
with suppliers are important in selecting a partner for the long-term development of the airport’s retail
operations. On the other hand, in more mature, sophisticated markets, the airport authority may be more focused
on pricing terms awarding concessions based largely on fees.
In return for granting the retailer the right to operate its concession, the airport authority typically receives a
fee based upon the number of passengers passing through the airport, the amount of sales at the concession, the
floor area of the concession or a combination of these factors. Fees may also include a minimum annual
guaranteed amount (MAG), requiring the retailer to make a payment to the airport authority irrespective of
passenger numbers or the revenues generated.
47

Cruise Line and Ferry Retailing
Travel retailers also operate on cruise lines and ferries. In 2007, sales on board cruise lines and ferries
represented approximately 7 percent of the global duty-free travel retail market. This segment of the market
represents the smallest channel, mainly due to the EU duty free sales abolition back in 1999. The majority of the
sales take place in Europe, in Scandinavia, around the British Isles and in the Mediterranean.
Downtown and Border Travel Retailing
Downtown and border shops constitute the second largest sector of the duty-free travel retail market after
airports, accounting for approximately 28 percent of global duty-free travel retail sales in 2007 according to
industry analyst Generation AB, and experienced a 13% growth from 2006 to 2007. This segment also includes
off airport shops affiliated with airport shops, port shops, hotel shops, diplomatic and military stores, sales in
low-tax markets and tax-free zones.
Products such as jewelry, watches, accessories, leather goods and audio and electronics are the best selling
products within the downtown and other shops sector. According to Generation AB, sales of these products
accounted for 53 percent of sales in 2007. This reflects the importance of downtown tax-free and cruise line port
shops. For border store operators, wine and spirits and tobacco tend to be the dominant product categories, as
they are for the diplomatic stores and ship suppliers.
According to Generation AB, the Americas, with its many border stores and Caribbean cruise line port
shops, is the largest regional market, generating 53 percent of global sales in 2007. The Asia & Oceania region
accounted for almost 34 percent of sales in 2007.
Inflight Retailing
Airlines engage in inflight retailing and in 2007, sales on board airlines represented approximately 8 percent
of the worldwide duty-free travel retail market according to industry analyst Generation AB. The airline channel
is only a small part of the market due to restrictions on product types, inventory, display capabilities and control
over sales experience.
Europe remains the largest regional market for inflight retail, accounting for well over half of global sales.
Inflight sales in the Middle East, Asia & Oceania region represent approximately one-third of the sales in this
sector. Perfumes and cosmetics perform best in inflight sales, representing 38 percent of sales in 2007 according
to Generation AB. Wines and spirits, tobacco, confectionary and jewelry and watches also account for
significant inflight retail sales.
48

Overview
BUSI�ESS
Dufry is a leading global travel retailer with operations in 40 countries on four continents combining strong
positions in emerging markets with prime operations in developed markets.
The Dufry Group’s travel retail operations consist of a variety of retail concepts focusing on the specific
needs of travelers, including:
General travel retail outlets listing a wide range of products such as wines and spirits, tobacco,
perfumes and cosmetics, confectionary and other foods, accessories and fashion items;
Brand boutiques featuring products from internationally recognized brand names;
Specialized shops listing a variety of different brands of a single type of product, such as electronics,
jewelry or regional goods;
Convenience stores offering convenience products for travelers;
Food and Beverage shops; and
Theme shops offering products relating to a special theme.
Dufry’s outlets are located in a variety of travel retail settings. As of October 31, 2008 Dufry operated
1,016 shops with a total sales area of approximately 137,540 square meters, including 822 shops in airports, 67
shops operating on cruise lines, ferries and at seaports, 67 shops in railway stations and 60 shops at downtown
tourist and other locations.
Dufry traces its origins back to 1865, when the Weitnauer family opened its first tobacco shop in Basel,
Switzerland. In 1948, Weitnauer became a duty-free distributor and four years later opened its first duty-free
shop with direct sales to continental European customers at Le Bourget Airport in Paris. Subsequent tax free
operations were launched at Basel-Mulhouse Airport in 1962 and at Linate Airport in Milan in 1979. In 2005,
the Company changed its name and adopted the Dufry brand.
In March 2004, a consortium of investors led by funds managed by private equity firm Advent International
Corporation, acting through the Company, acquired a 75 percent interest in Dufry’s travel retail business.
Ownership of Dufry’s vending machine business, Restomat, and its wholesale services business, Weitnauer
Retail Services, was retained by Dufry’s former shareholders. In July 2005, the consortium acquired the
remaining 25 percent of Dufry’s travel retail business.
Following the consortium’s 2004 acquisition, a new chief executive officer was appointed, a new
organizational structure put in place and the management team was supplemented by a number of new members.
Dufry completed the disposal of certain underperforming and non-core assets.
On December 6, 2005 Dufry became a public company and listed its shares on the SIX Swiss Exchange.
At the end of March 2006, the Group acquired 80 percent ownership in Brasif Travel Retail and subsidiaries
in Brazil as well as Eurotrade Ltd, in Cayman Islands. On December 16, 2006, Dufry launched the initial public
offering of its South American subsidiary DSA, a Bermudan company holding Dufry do Brasil Duty Free Shop
(former Brasif Travel Retail) and Eurotrade Ltd, listing DSA’s shares on the Luxembourg Stock Exchange and
issuing Brazilian Depositary Receipts listed on the São Paulo Stock Exchange (“BOVESPA”). Dufry still holds
51 percent in DSA today.
On December 17, 2006, the Group acquired 100 percent of the share capital of 8 Caribbean companies with
23 shops in Puerto Rico and other Caribbean locations. On March 1, 2008, the Group acquired 51 percent of the
voting shares of Dufry CE s.r.o, a privately owned company based in Prague, Czech Republic. This company
currently operates seven duty-free shops at the airport of Prague.
On October 14, 2008, Dufry Group acquired Hudson, the leading operator of duty-paid airport shops in
North America. See “The Acquisition of Hudson Group Holdings, Inc.” As a result of the Acquisition, Hudson
now is wholly owned by the Dufry Group and integrated in the Group structure, forming one of the six regions.
49

Dufry is focused on growth, both through the enhancement and expansion of certain existing facilities and
the entry into new concession agreements. In addition, the Dufry Group is continuing the simplification of its
corporate structure and improvement of financial controls, and has also embarked on a project to standardize
management controls and commercial relationships throughout its regional offices.
Dufry (excluding Hudson) generated revenue of CHF 1,930.3 million for the year ended December 31,
2007 and CHF 934.8 million for the six months ended June 30, 2008. As of June 30, 2008, Dufry (excluding
Hudson) had 7,180 employees (FTE’s).
Hudson generated revenue of US$ 629.9 million for the year ended December 30, 2007 and US$ 317.9
million for the six months ended June 29, 2008. As of June 30, 2008, Hudson had 4,408 employees (FTE’s).
Competitive Strengths
High-quality, diversified concession portfolio. Dufry has assembled a high-quality portfolio of travel retail
concessions providing competitive advantages with, in Management’s view, relatively long contract terms,
comparatively low concession fees and attractive locations, in some cases with exclusive rights to particular
facilities or products. The portfolio includes operations at airports, seaports and railway stations as well as on
cruise lines, in-flight, at downtown tourist locations and at border locations. For example, 39 percent of 2007
sales of Dufry (excluding Hudson) were generated at concessions, the term of which is due to be between 6 and
9 years, while 34 percent of 2007 sales were generated at concessions, the term of which is due to be greater
than 9 years. In 2007, 39 percent of 2007 sales of Hudson were generated at concessions, the term of which is
due to be between 6 and 9 years, while 14 percent of 2007 sales were generated at concessions, the term of
which is due to be greater than 9 years.
The following charts show the net sales of 2007 by concession duration.
Dufry (excluding Hudson) Hudson
9+ years
34%
1-2 years
10%
6-9 years
39%
3-5 years
17%
50
6-9 years
35%
9+ years
14%
1-2 years
16%
3-5 years
35%
Diverse operations. Dufry is a leading global travel retailer, with geographically diverse operations in 40
countries across Europe, Africa, Eurasia, North America and the Caribbean and South America combining highgrowth
emerging markets and prime operations in developed markets. The Dufry Group’s operations are further
diversified by product (both duty-free and duty-paid), with no product category accounting for more than 25
percent of its sales in 2007 and no single supplier accounting for more than 10 percent of purchases.
Extensive operations provide benefits of scale. The Dufry Group operates 1,016 shops in 40 countries.
Based on 2007 revenues, industry analyst Generation AB ranks Dufry (excluding Hudson) as one of the top five
travel retailers in the world. As a result of the global reach of its operations, the Dufry Group has extensive
relationships with suppliers and significant experience in tailoring retail listings to meet specific local market
needs. Dufry believes that its experience in developing retail facilities in diverse markets and in bringing highquality
suppliers to new outlets is a competitive advantage in obtaining new concessions.
Well-developed reputation as a quality operator. Dufry is held in high regard in the travel retail sector as a
result of its long-standing relationships with facility owners and suppliers. For example, the Dufry Group has
operated travel retail facilities in Milan – Linate Airport since 1979 and in Tunisia since 1997. The stores of
Hudson continuously set the benchmark in news retail and quality specialty stores for the transportation industry
throughout North America. They consistently rank the highest in customer satisfaction and produce the most

evenues in the industry. Management believes that the Dufry Group’s reputation as a trusted operator enhances
its ability to secure concessions and to offer premium, branded goods in its outlets worldwide.
Experienced management team and multinational workforce. Dufry’s executive management team has a
combined 165 years of experience in the travel retail sector, backed by a principal shareholder with significant
industry knowledge. In addition, the Dufry Group’s approximately 11,590 strong workforce includes over 50
nationalities, providing Dufry with excellent local knowledge at all of its retail locations.
Business Strategy
Combine global reach with extensive local market knowledge. Dufry aims to use the global reach of its
operations as both a means to diversify, and thus optimize, its risk profile while also increasing its know-how
and experience in global travel retail operations. Combining the benefits of its global reach and local market
knowledge with its standardized, central management approach, Dufry aims to deliver a concession portfolio
and product listing that is attuned to the needs of both the global travel retail market and the specific needs of its
constituent local markets thereby providing a platform for the Dufry Group’s continued growth.
Operate as a ‘true’ retailer focused on customer needs. Dufry focuses on the specific needs of travelers to
best serve two customer constituencies: the operators of airports and other travel facilities, and the travelers
using those facilities. The Company operates a ‘true retail’ model, managing operations directly and staffing all
of its shops with Dufry employees. Dufry’s marketing, promoting and advertising of its products is similar to
traditional ‘High Street’ retailers. Dufry aims to use its direct and in-depth understanding of its customers to
increase passenger expenditures and improve profitability by using factors such as location, product mix, pricing
strategy and service, always taking into account the changing needs of its customers in the particular geographic
area. For example, airport store layouts were refined by adding "walk-through" designs and store-in-store
sections. In addition, the Dufry Group is implementing a number of initiatives to enhance customer confidence
and satisfaction, including loyalty programs and product guarantees.
Position Dufry as preferred partner for long-term business relationships. Dufry seeks to structure its
relationships with facility owners as long-term partnerships. In the partnership model, Dufry may provide
expertise in the development of all or a significant part of the amenities offered at a facility, or may offer the
facility owner an equity stake in the retail operation, depending upon the situation. Dufry’s goal is to offer the
airport authority or the landlord a comprehensive package including a series of alternative business plans that
allows it to maximize revenues with total confidence in its business partner. This approach is designed to create
incentives for better long-term development of the facility, thereby resulting in longer concession terms for
Dufry as well as a partner with whom it may share risk.
Enhance central functions to improve profitability. The Company is in the process of implementing
improved centralized procurement and logistics functions and an integrated IT platform. Following its
implementation, Dufry aims to capitalize on the synergies created by the standardization of processes among its
operations, take better advantage of economies of scale by improving its purchasing power thereby improving
its margins and reduce the Dufry Group’s reaction time as a result of improved central monitoring of operations.
Focus on profitable growth. Management believes that the travel retail sector provides opportunities for
expansion of Dufry’s business and the Dufry Group plans to build on the foundation provided by its global
reach, its focus on customer needs, its emphasis on partnership and its enhancement of centralized functions to
pursue profitable growth. In essence, Management believes that those factors that create growth will also sustain
growth. To implement this strategy, the Dufry intends to continue its policy of enhancing and expanding certain
existing facilities while seeking new concessions through tender or private negotiation or through acquisition
opportunities that may arise from industry consolidation, including increasing the Dufry Group’s holding in
certain non-wholly owned operating subsidiaries. Dufry’s intention is to obtain new concessions that meet
minimum financial thresholds, provide long concessions terms and cover attractive locations while also allow
Dufry to control its costs. In addition, the Company continues to expand the range of products offered to its
customers, particularly by providing a wider range of luxury brands. Particularly, Dufry is expanding into the
key product areas which demonstrate higher growth and margin potential such as perfumes, cosmetics, jewelry,
watches and foods. As part of this strategy, Dufry is reinforcing merchandising and marketing efforts to
introduce leading edge retail concept and shift from price-led to quality and service-led marketing.
51

Operations
Dufry’s Retail Concepts
General
Dufry’s retail activities reach across all areas of the travel retail market with operations at airports, on board
airlines, cruise lines and at seaports, railway stations, downtown tourist locations and border crossings.
Developed in collaboration with airport authorities and other landlords, Dufry’s shops are designed to meet the
unique requirements of the traveler.
The following table shows the distribution of Dufry’s shops by sales channel at June 30, 2008 as well as the
net sales by sales channel in the years 2006 and 2007 as well as for the six-month period ended June 30, 2008:
Sales channel �umber of Shops �et sales
For the six months
ended June 30, For the year ended December 31,
2008 2007
(in percent)
2006
Airport ................................................................323 82 80 77
Cruise lines, ferries and seaports ................................ 67 8 8 8
Downtown, hotels and resorts ................................ 60 6 7 9
Railway stations and other ................................ 16 4 5 6
Total ................................................................ 466 100 100 100
The following table shows the distribution of Hudson’s shops by sales channel at June 30, 2008 as well as
the net sales by sales channel in the years 2006 and 2007 as well as for the six-month period ended June 30,
2008:
Sales channel �umber of Shops �et sales
52
For the twenty-six
weeks ended June 29,
For the fifty-two weeks ended
December 30 / 31,
2008 2007
(in percent)
2006
Airport ................................................................ 499 92.1 92.3 91.5
Railway stations and other ................................51 7.9 7.7 8.5
Total ................................................................ 550 100 100 100
Dufry operates a number of retail concepts across all locations, including:
General Travel Retail: listing a wide range of traditional travel retail products on display, including
perfumes and cosmetics, wines and spirits, tobacco, food, jewelry and watches, accessories and
frequently listing goods to international travelers on a duty-free or duty-paid basis. These shops provide
Dufry’s customers the possibility of a one-stop shopping and are attractive alike to travelers that want
to discover the offering as well as customers that are looking for specific products. Dufry’s latest
innovation in this segment is the so called walk-through shop, which is designed in such a way that the
entire passenger flow is directed through the shop. This allows the travelers to explore the offering
without needing to deviate from their way to the gate.
Brand Boutiques: listing a broad range of products from a single well known, global brand in each
shop, as Dolce & Gabbana, Emporio Armani, Etro, Ferragamo, Hermès, Hugo Boss and Zegna. These
boutiques are fully operated by Dufry staff. They mirror the high street boutiques of the respective
brands and are interesting for customers and suppliers alike: Customers can use their dwelling time to
shop for their favourite brands and suppliers get a highly visible showcase to display their products.
Typically, the brand owner grants Dufry exclusive rights to market the branded products within a
specific concession area.
Specialized Shops: listing a variety of different brands of one specific product category, such as jewelry
and watches, travel and other accessories, sunglasses, chocolate, for example the Casa del Habano

Cigar Shop at Monterrey International Airport in Mexico which offers major brands of cigars from the
key cigar producing countries, the Tequila Shop at Mexico City’s Benito Juárez Airport, which offers a
range of over 72 different brands of tequila, ‘Colombian Emeralds’, one of the largest jewelers in the
global travel retail market operating mainly in the Caribbean and ‘Sweet Treats’, Dufry’s chocolate
store concept at Singapore’s Changi Airport, the Kitchen stores in North America, which offer regional
food and food related items or the ‘$10/$15 boutique’ store concept in North America, offering
extravagant looking and fashion accessories at value prices. These shops are highly attractive to
customers who are looking for a specific product and want to have the choice of different brands.
Besides, Hudson operates the ‘Hudson News’ stores. These shops offer a widest selection of magazines
of up to 1,000 titles per shop on a duty-paid only basis, apart from convenience products. The ‘Hudson
Booksellers’ stores offer a broad representation of bestsellers and new releases as well as a large
selection of hard cover, paperback, trade and children’s books. These shops are operated as stand-alone
shops, in combination with each other or together with an ‘Euro Café’.
Theme Shops: With the acquisition of Hudson, Dufry expanded its retail concept by theme stores. The
shops list, on a duty-paid basis, a broad product range relating to a special theme and not to a specific
product category. ‘Kids Works’ shops offer a wide selection of toys, dolls, games, books and apparel
for children. The ‘Christmas in’ stores are year-round holiday shops that feature Christmas ornaments
and related items designed to represent local icons and regional themes. ‘Discover’ theme shops
showcase local gifts and artwork in beautiful stores designed to reflect the local indigenous market.
Dufry operates all of its retail outlets directly and is responsible for ownership and management of
inventory and employees within each shop. Within its general travel retail shops, Dufry allocates space to
different products and suppliers in order to optimize sales. Space allocation as well as general layout decisions
also reflect allocation of promotional opportunities to certain products or brands under the terms of a supply or
other agreement with a supplier or manufacturer. Dufry also operates its brand boutiques and specialty shops
directly, although the brand owner or supplier may assume financial responsibility for certain shop fittings as
part of its agreement with the Dufry Group.
Airport Shops
Each of Dufry’s principal airport concessions includes at least one general travel retail shop or one
convenience store. Depending on the nature of the specific concession, Dufry may also operate one or more
brand boutiques or specialty stores at the same location.
The Company primarily operates its duty-free and duty-paid shops as well as its warehouses and publicity
spaces through concession agreements with the relevant airport facilities. The amounts payable generally
include a fixed monthly payment and a variable component which is calculated based upon the gross revenues
of the shops, subject to a minimum guaranteed amount. Dufry’s contracts generally reflect relatively low fees
and long concession terms.
As part of operating a concession, Dufry may also provide development services to airport authorities
whereby it assists in the selection of the product mix, advises on allocation of space within the facility or
designs an entire commercial area. For example, Dufry designed the entire commercial area of its new shopping
center at Mexico City’s Benito Juárez Airport, including the manner in which passenger traffic will flow.
Cruise Line, Ferries and Seaport Shops
The Dufry Group operates shops on the cruise ships of Norwegian Cruise Line (“NCL”) and MSC Cruises
(“MSC”) as well as on ferries in the Aegean Sea. Dufry also operates shops at terminals of major cruise lines at
destinations such as Grand Turk Island, Bridgetown, in Barbados and Cozumel, in Mexico. Dufry’s cruise
terminal and cruise line shops offer a full range of traditional duty-free products as well as brand boutiques and
specialized shops that are similar to its airport shops, such as the Colombian Emeralds jewelry shops on the
NCL vessels.
The NCL and MSC ships have routes in the Caribbean, the Mexican Riviera, South America, Bermuda,
Hawaii and Europe. The cruise ship operations span a broad spectrum of sizes and scopes with various
passenger capacities crew sizes and retail spaces, and the retail opportunities on the ships vary significantly.
Although Americans constitute the majority of passengers, the ships also carry Canadian, British and European
53

passengers. Accordingly, Dufry maintains a commercial strategy that is flexible enough to account for varied
customer types in order to maximize its business potential.
Railway Station, Downtown Tourist Location, Border Shops and Inflight Retailing
Dufry’s operations at railway stations and at downtown tourist locations involve both specialized shops,
such as the Itineris news and book shops at Milan’s central railway station or the Hudson News stores in New
York Grand Central Station and Penn Station and Washington Union Station, and general travel retail
operations. The downtown tourist shops are located on the Caribbean cruise line circuit and in prime downtown
areas such as São Paulo or Rio de Janeiro.
The Dufry Group also operates border shops, such as those located at borders in Mexico and Nicaragua
which focus on sales of traditional duty-free products such as spirits and tobacco products.
In addition, Dufry operates in-flight retailing on airlines, assists them in the selection and supply of
products and trains the airlines’ cabin crews.
Dufry’s Range of Products
Dufry’s travel retail shops offer a wide range of products, from traditional duty-free products such as spirits
and tobacco, to perfumes and cosmetics, confectionary and other foods and other luxury goods offered on a
duty- or tax-free or duty-or tax-paid basis.
In the year 2007, the duty-free sales accounted for 85 percent of the net sales of Dufry (excluding Hudson),
while the duty-paid sales represented 15 percent. On a pro forma basis of the combined entity of Dufry and
Hudson, the duty-free sales accounted for 64 percent and the duty-paid sales for 36 percent.
The product mix in any specific shop or location is tailor-made for that region or shop, as determined by
customer buying behavior. There is therefore an important link between, on the one hand, the product
assortment and the form of retail concept employed by the Dufry Group in any given location and, on the other
hand, the profile of the travelers at that location.
Hudson primarily offers traditional newsstand items such as newspapers, magazines, books, confection,
snacks and beverage, to health and beauty care, souvenirs, apparel, small electronics, phone cards, film and
batteries as well as other core convenience items necessary for the traveling public.
The following tables show the percentage distribution of Dufry’s (excluding Hudson) and Hudson’s net
sales by product category from 2005 to 2007 as well as for the six-month period ended June 30, 2008
respectively June 29, 2008.
For the six
months ended
June 30,
(unaudited) For the year ended December 31,
2008 2007 2006 2005
Dufry (excluding Hudson) (in percent)
Perfumes & Cosmetics ................................................................27 27 25 22
Wines and Spirits ................................................................ 18 18 17 17
Watches, Jewelry and Accessories ................................. 16 16 16 14
Confectionary and Foods ................................................................ 11 11 11 12
Tobacco goods ................................................................ 10 10 11 14
Electronics ................................................................................................ 6 6 7 7
Fashion, Leather and Baggage ................................................................ 6 6 5 5
Literature and Publications ................................................................ 3 3 4 5
Toys, Souvenirs and other goods ................................................................ 3 3 4 4
Total ................................................................................................ 100 100 100 100
54

For the twenty-six
weeks ended June
29, (unaudited) For the fifty-two weeks ended December 30 / 31,
2008 2007 2006 2005
Hudson (in percent)
Media ................................................................................................ 40 42 44 46
Candy & Snacks ................................................................ 18 17 17 16
Food & Beverage ................................................................ 11 10 8 7
Souvenirs & Gifts ................................................................ 9 10 10 10
Apparel ................................................................................................ 7 8 7 7
Sundries and other goods ................................................................ 14 11 12 11
Tobacco ................................................................................................ 1 2 2 3
Total ................................................................................................ 100 100 100 100
The following tables show the distribution of Dufry’s (excluding Hudson) and Hudson’s net sales by
product category in the years 2005, 2006 and 2007 as well as for the six-month period ended June 30, 2008
respectively June 29, 2008.
55
For the six
months ended
June 30,
(unaudited)
For the year ended
December 31,
2008 2007 2006 2005
Dufry (excluding Hudson)
(CHF in millions)
Perfumes & Cosmetics ................................................................ 249.3 516.3 346.9 203.9
Wines and Spirits ................................................................ 160.1 335.5 234.6 154.7
Watches, Jewelry and Accessories ................................. 147.1 305.1 224.2 129.6
Confectionary and Foods ................................................................ 102.8 208.4 160.7 114.9
Tobacco goods ................................................................ 90.6 185.6 147.8 130.2
Electronics ................................................................................................ 54.0 107.5 104.5 60.7
Fashion, Leather and Baggage ................................................................ 55.2 107.5 77.0 46.2
Literature and Publications ................................................................ 28.5 60.0 53.6 47.9
Toys, Souvenirs and other goods ................................................................ 23.9 59.7 54.6 44.7
Total ................................................................................................ 911.5 1,885.4 1,403.8 932.9
For the twenty-six
weeks ended June
29, (unaudited) For the fifty-two weeks ended December 30 / 31,
2008 2007 2006 2005
Hudson
(US$ in millions)
Media ................................................................................................ 127.7 261.8 234.6 223.0
Candy & Snacks ................................................................ 57.8 107.1 89.6 76.5
Food & Beverage ................................................................ 34.6 63.6 43.5 36.3
Souvenirs & Gifts ................................................................ 28.9 60.1 53.9 50.3
Apparel ................................................................................................ 23.0 50.0 38.8 33.5
Sundries and other goods ................................................................ 41.1 75.5 63.9 56.0
Tobacco ................................................................................................ 4.8 10.2 11.6 12.8
Total ................................................................................................ 317.9 628.3 535.9 488.4

The following chart shows the pro forma distribution of Dufry’s and Hudson’s net sales of 2007 by
products category on a combined basis.
Tobacco goods
8%
Electronics
4%
Fashion
6%
Other
8%
Watches and
jew ellery
12%
Literature and
publications
13%
56
Perfumes and
cosmetics
21%
Food
15%
Wine and spirits
13%
Dufry purchases its products from over 1,000 suppliers around the world with 70 percent of its sales
generated by products sourced from 100 suppliers. Within each principal product category Dufry maintains key
relationships with major international suppliers. The following table sets out details of the top five suppliers of
Dufry (excluding Hudson) in each product category in 2007.
Product Category Top Five Suppliers
Perfume and Cosmetics Produits Luxe International
Estee Lauder Travel Retailing
Procter & Gamble (Prestige Beauté)
Dior Christian Parfums
Coty Prestige
Wines and Spirits Diageo
Pernod Ricard World Trade
LVMH Moet-Hennessy
Maxxium Group
Bacardi Martini
Tobacco goods Phillip Morris
BAT, British American Tobacco
Japan Tobacco International
Imperial Tobacco / Reemtsma
Habanos / Cubatabacos ( Altadis)
Watches, Jewelry and
Accessories
Confectionary and
Foods
Luxottica
Safilo Group
Swatch Group
Tag Heuer SA
Cartier International
Lindt & Sprüngli
Kraft Foods
Nestlé
Mars / Masterfoods
Ferrarini
Electronics Apple
Olympus Optical
Sony
Matsushita Electric Co. Ltd
Canon Inc

Product Category Top Five Suppliers
Fashion, Leather and
Baggage
Toys, Souvenirs and
other goods
Gap International B.V.
Boss Hugo AG
Ermenegildo Zegna
Salvatore Ferragamo
Tumi
Terner Bijoux
Artisans dangkor
Giochi Preziosi
Russ Berrie
Hasbro Inc
The following table sets out details of the top five suppliers of Hudson in each product category in 2007.
Product Category Top Five Suppliers
Media Anderson News
Hudson News Company
Source Interlink
News Group
Bookazine
Candy & Snacks Core Mark
Resnick
Snak Club
Eby Brown
Godiva
Food & Beverage Coca Cola
US Food Services
Food Service of America
Alki Bakery
Beaverton Bakery
Souvenirs & Gifts City Merchandise
Kapan Kent
Smith Western
City Concepts
Landmark Graphics
Apparel Life is Good
Polar Graphics
Kings Wear
Perrin
Landmark Graphics
Sundries & Other SNI / Drugstore Direct
Coremark
Resnick
Wolf Manufacturing
UV Sales
Tobacco Resnick
Coremark
Auburn Merchandise
Eby Brown
Imperial Tobacco
57

No supplier in any product category, apart from Philip Morris in tobacco goods and Diageo in wines and
spirits, is responsible for over 25 percent of purchases in that category and no supplier is responsible for over 10
percent of the Dufry Group’s total purchases.
Dufry’s Marketing Strategy
Dufry’s marketing strategy, which is coordinated centrally, involves initiatives to attract customer interest
in its shops and products by enhancing the customer’s overall shopping experience. These initiatives as well as
the overall appearance of the shop (ranging from general signage, display and leaflets to price tags and receipt
format) are standardized globally to create awareness of Dufry and to leverage its marketing activities. The
marketing strategy involves:
"True retailer" marketing. The Dufry Group operates as a true retailer, which means that the operations
are managed directly and all shops are staffed with own employees, and that Dufry focuses on
marketing, promoting and advertising its products in a similar manner as traditional "High Street"
retailers. Dufry’s focus is on its customers’ changing needs based on market and fashion trends in the
particular geographic areas in which the shops are located. The Company leverages shop location,
refining product mix and pricing strategies, enhancing customer service and continuing to develop
innovative marketing concepts.
Store design and shopping experience. Dufry develops the design and layout of its shops in order to
maximize visual appeal and ensure that the fastest selling items are prominently displayed. The
majority of Dufry’s airport shops has open facades and is designed to accommodate the flow and needs
of the customers. This means that the shops are designed to allow for the efficient flow of customers,
organized according to shopping profiles and constantly changing to meet the changing preferences of
the customers. Dufry also began using the "store-in-store" and "walkthrough" concepts to ensure that
products are in the direct view of passing customers.
Promotions. The Dufry Group’s key marketing tool is its use of promotions. Its global end-of-year
promotions, for example, target the Christmas sales market, while regional promotions target customers
with specific merchandise for a specific local celebration, such as Easter in Europe or Halloween in the
Americas. The goal of these promotions is to increase sales volumes by increasing market penetration,
triggering impulse purchases and providing a richer shopping experience for Dufry’s customers while
also allowing suppliers to showcase their products with greater visibility. The formats of the Dufry
Group’s promotions are ever changing and include contests, tastings, gifts and price reductions.
Advertising and Merchandising. Advertising and merchandising are important aspects of both the
Dufry Group’s marketing strategy and its relationship with its major suppliers. Dufry seeks to
maximize its revenues while also giving the opportunity to international brands to increase their
visibility in its stores. Dufry advertises throughout the airport where the shops are located, usually in
conjunction with partner-suppliers. As a component of its major supply contracts, the Dufry Group
provides advertising opportunities for its suppliers such as in-store promotion of new products or prime
positioning of products for a certain time period. For example, in its brand shops, Dufry’s suppliers
may provide shop fittings appropriate to the brand and product listing. The Dufry Group’s
merchandising strategy aims to use the design and layout of its facilities, shops and product categories
to maximize visual appeal and ensure the display of the fastest selling items, thus increasing revenues.
The Dufry brand. To increase its recognition by the traveler and distinguish Dufry from its competitors,
the Dufry Group is rolling out its new brand across its network of retail operations, including Dufrybranded,
standardized shopping bags, receipts and employee uniforms. In addition, to enhance
customer confidence in purchasing from travel retailers, especially as the non-traditional duty-free
product range continues to expand, Dufry offers a worldwide money-back guarantee on all its products.
Product pricing. The Dufry Group seeks to maximize its profitability by reaching an optimal balance
between price and volume. To that end, Dufry generally determines its pricing policy in any given
concession based on the buying behavior of its customers, which in turn is influenced by the prices in
the local market as well as the nature of traveler using the particular facility. Ultimately, the Dufry
Group aims to achieve a price for its products that is considered fair and reasonable based upon any
benchmarking done by its customers. In general, like other airport duty-free competitors, Dufry’s dutyfree
shop prices are set at attractive prices in comparison with local market prices and the international
58

airports of origin. The Company’s duty-paid airport and non-airport prices are generally in line with
local market prices. For the onboard shops, pricing is more focused on type of customer depending
upon the ships’ routes.
Customer research programs. The Dufry Group also uses its permanent customer research programs to
identify customer motivations and buying behavior and then transforms this information into specific
marketing programs to promote its concepts and products.
Dufry’s Operational and Financial Control Structure
General
The Group Executive Committee, comprised of the Chief Executive Officer (CEO), Global Chief Operating
Officer (GCOO), Chief Financial Officer (CFO), the Group General Counsel (GGC) and six regional Chief
Operating Officers (COOs), manages Dufry’s global operations. The GCOO and the CFO are responsible for the
development of the commercial and financial strategies of the Group as well as defining its financial and
commercial control standards and executing in each of its areas the current business and the acquisitions. The
GGC is responsible for the legal management of the Group, the execution of acquisitions and the regulatory
compliance. The regional COOs, who have overall responsibility for their respective regions, use their
familiarity with the local environment in their regions to implement the Group’s global operational and financial
policies. Day-to-day management of the Group’s operations, however, is the responsibility of local
management. This structure is driven by, and permits the implementation of, the Group’s overall approach to its
business: think globally, act locally.
The following diagram shows the operational control structure of Dufry.
Chief Operating
Officer
Region Europe
Dante Marro
Chief Operating
Officer
Region Africa
Miguel Ángel
Martínez
Chief Financial Officer
Xavier Rossinyol
Group General
Counsel
Pascal C. Duclos
Chief Operating
Officer
Region Eurasia
René Riedi
Chief Executive Officer
Julián Díaz
59
Chief Operating
Officer
North America &
Caribbean
José H. González
Global Chief Operating
Officer
José Antonio Gea
Chief Operating
Officer
Region South
America
José Carlos Rosa
Chief Operating
Officer
Region Hudson
Joseph DiDomizio
Dufry’s central finance team, based at its Basel headquarters and headed by the CFO, is responsible for
devising, implementing and overseeing the Group’s financial control structure, including its monthly reporting,
treasury reporting and budgeting processes. This team is also responsible for the consolidation of financial
information from the Group’s local operating subsidiaries and reporting to members of the Group Executive
Committee. The local finance teams are responsible for the daily operations (such as accounting and treasury)
and providing the relevant information to the group level.
Dufry’s commercial control policies are also devised and implemented centrally. These policies involve the
collection of certain key information from across the Group’s operating subsidiaries relevant to monitoring the
Group’s current operations. Such information includes daily sales by location and stock-keeping unit (“SKU”)
and inventory information. This information provides the Group Executive Committee with the shared
experience of Dufry’s worldwide operations that allows it to set policies for the business on a global level.
Information Technology
Management believes that information technology is an important resource in maintaining an effective
operational and financial control structure. To this end, Dufry has implemented a number of global information
technology systems and processes in the context of a global IT strategy and plan.

Legal
Dufry’s Global Data Centre platform uses the latest virtualization and consolidation technologies
to provide all key IT services to a growing number of operations in the Group. This covers from
office to business applications, securing business continuity, security and cost optimization
through high scalability.
Dufry’s Financial Consolidation system incorporates and consolidates financial statements from all
the Group’s legal entities, facilitating legal and regulatory compliance, timely and accurate
information and automation of financial architecture and processes.
The Dufry Core Suite (DCS) system is an integrated enterprise resource planning (ERP) system,
providing a tailored IT environment to manage standard retail operations procedures, from
ordering to sales, including stocks management, finance, and reporting. This supports the
implementation of a standard ‘Dufry Business Model’.
The Dufry Commercial Information System extracts, aggregates and provides sales, margin and
stocks information from all of the Group’s operations, enabling analysis and decision-making at
the local, business unit, regional and global level.
Finally, the ‘Global Order Management’ system facilitates the optimization of retail inventories by
improving product availability at Dufry’s shops whilst reducing overall stock levels.
The Group’s SKU system manages Dufry’s global catalogue, consolidating the product portfolio
of its operating companies. This facilitates the commercial reporting necessary for marketing
purposes and trend analysis as well as providing information for supplier negotiations.
Finally, different sourcing, organizational and service initiatives are in place to leverage Dufry’s
global scale and diversity to maximize service and optimize costs.
Dufry’s global activities require a highly sophisticated legal management to comply with all applicable
laws, standards and regulations all around the world. In particular, compliance with the rules of the SIX Swiss
Exchange, the BOVESPA and the Luxembourg Stock Exchange, as well as applicable corporate governance
principles, are to be safeguarded at all times. Beside its compliance function and the general management of the
day-to-day legal matters of the Group’s subsidiaries, Dufry’s legal department is responsible for the legal
management of Dufry’s concessions, marks portfolio, merger and acquisitions activities and new projects. With
its experienced legal professionals, Dufry’s legal department plays an essential role in Dufry’s smooth and
efficient business operations, business expansion and structuring.
Human Resources
Proper human resource management and planning are essential to Dufry’s success. In addition to senior
management, Dufry’s regional and local management, as well as its sales force play an important role in the
execution of Dufry’s strategy. The goal of Dufry’s human resource management strategy is to contribute to
Dufry’s vision of becoming the preferred employer in the travel retail sector. The Group’s human resource
managers devise and execute standard procedures and processes such as recruitment, training and development.
To ensure cost optimization, Dufry’s human resources department uses global suppliers to provide these
services.
Procurement and Logistics
As part of its enhancement of the Group’s centralized functions, Dufry has implemented a centralized
procurement strategy, which includes the segmentation of suppliers by volume and active central management
of these relationships. The Group’s purchasing strategies and standards are determined centrally by Dufry’s
central ‘buying pool’, including the Chief Executive Officer, Global COO, Marketing Director and Logistics
Director and group category managers. Regional category managers implement these strategies on a regional
and local level by determining the products to be offered in that region or locality.
The Europe, Africa and Eurasia and Asia regions are serviced by a central warehouse in Switzerland, the
operation of which Dufry has outsourced, while the North America & Caribbean and the South America region
is serviced by Dufry’s own central warehousing facility in Miami. Additionally, direct shipments are made by
60

Dufry’s suppliers. The stores of Hudson are serviced by direct shipments from the suppliers to the shops or local
warehouses close to the shops.
The Cayman-based logistics platform Eurotrade is currently used only for the duty-free business in Brazil,
but is an integral part of the overall business. The purpose served by Eurotrade is related to the Brazilian
regulatory framework’s requirement that duty-free goods be sold on consignment in U.S. dollars on behalf of a
non-domestic entity. Therefore, in accordance with these regulations, Eurotrade owns DSA’s inventory until the
point of sale to the final consumer.
Description of Operations by Segment
General
Dufry’s global operations are organized into six regions: Europe, Africa, Eurasia, North America &
Caribbean, South America and Hudson. These operations are conducted primarily through local subsidiaries that
are, directly or indirectly, wholly owned by the Company, or in which the Company holds, directly or indirectly,
a majority interest with a local partner holding a minority interest, and over which Dufry typically exercises
management control. In this instance, Dufry’s local partner is generally the operator or landlord of the facility,
such as an airport authority. Dufry also works with entities other than the operator or landlord of a facility which
do not hold equity stakes in its operating subsidiaries. These entities provide advice and support to Dufry’s
operations, including administrative, translation and security services. The compensation of any such entity may
also be based upon the profits of the local operating subsidiary or the specific concession, as the case may be, to
which it provides support and may be recorded by the Dufry Group as concession fees on a case by case basis.
The following diagram shows the regional distribution of the Dufry Group’s (excluding Hudson) 2007 net
sales.
61

The following tables show the regional distribution of Dufry’s (excluding Hudson) and Hudson’s turnover
in the years 2005, 2006 and 2007 as well as for the six-month period ended June 30, 2008.
62
For the six
months ended
June 30,
(unaudited)
For the year ended
December 31,
2008 2007 2006 2005
Dufry (excluding Hudson)
(CHF in millions)
Europe (including headquarters) ................................................................ 270.0 546.7 445.8 397.1
Africa ................................................................................................ 92.6 183.6 146.5 128.1
Eurasia ................................................................................................ 125.3 228.8 189.0 151.4
North America & Carribean ................................................................ 214.5 487.6 340.7 292.2
South America ................................................................ 310.2 614.9 383.6 47.3
Eliminations (intercompany net sales) ................................ (77.7) (131.3) (69.3) (66.2)
Total ................................................................................................ 934.8 1,930.3 1,436.3 949.8
For the twenty-six
weeks ended June
29, (unaudited) For the fifty-two weeks ended December 30 / 31,
2008 2007 2006 2005
Hudson (US$ in millions)
North America ................................................................ 317.9 628.3 535.9 488.4
Total ................................................................................................ 317.9 628.3 535.9 488.4
The following chart shows the pro forma regional distribution of Dufry’s and Hudson’s net sales of 2007 on
a combined basis.
Eurasia and Asia
9.0%
Europe
16.0%
Africa
7.0%
US and Canada
27.6%
South America
24.0%
North America and
Caribbean (excl.
US and Canada)
16.4%
The following table sets forth certain statistical data relating to the regions.
At October 31, 2008
�orth
America & South
Europe Africa Eurasia Caribbean America Hudson Total
(sales area in square meters)
Total sales area ......................... 18,500 8,500 8,700 38,200 16,400 47,240 137,540
Total number of shops .............. 95 38 51 196 86 550 1,016
Airport ................................... 75 37 51 118 42 499 822
Cruise lines and seaports .......
Downtown, hotels and
13 - - 20 34 - 67
resorts - - - 51 9 - 60
Railway stations and other .... 7 1 - 7 1 51 67

Europe
This region includes Dufry’s operations in Italy, Greece, France, The Netherlands, Switzerland, Spain and
the Czech Republic and has its headquarters in Milan.
The following table sets forth the locations of Dufry’s shops in Europe at June 30, 2008.
Country Shop location
Czech Republic Prague-Praha Ruzyne Airport
France Nice Cote d’Azur Airport
Pointe-à-Pitre Airport
Greece Patras Ferry-Blue Star (Blue Horizon)
Patras Ferry-Blue Star (Kefalonia)
Patras Ferry -Superfast I
Patras Ferry -Superfast V
Patras Ferry -Superfast VI
Patras Ferry -Superfast XI
Patras Ferry -Superfast XII
Piraeus Ferry-Blue Star (Blue Star Ithake)
Piraeus Ferry-Blue Star (Naxos)
Piraeus Ferry-Blue Star (Paros)
Piraeus Ferry-Blue Star (Super Ferry 2)
Piraeus Ferry-Blue Star I
Piraeus Ferry-Blue Star II
Piraeus Ferry-Blue Star (Diagoras)
Eptanisos
Hellas Wholesale
Italy Bergamo Airport
Brescia Airport
Genoa Airport
Milan – Malpensa Airport
Milan – Linate Airport
Milan Central (railway station shop)
Naples Airport
Rome – Ciampino Airport
Rome – Fiumicino Airport
Rome Termini (railway station shop)
Turin Central (railway station shop)
Verona Airport
Inflight sales
The Netherlands Amsterdam – Schiphol Airport
Spain Bilbao Airport
Tenerife Sur Airport
Las Palmas de Gran Canaria Airport
Switzerland Basel – Euroairport
Samnaun (free zone)
Dufry’s largest operation in this region, by country, is in Italy where the Company’s 60 percent majority
owned subsidiary, Dufrital, is the operator of both duty-free and duty-paid shops in Milan’s Malpensa and
Linate airports. These shops are operated under agreements with Milan’s airport authority, the Società Esercizi
Aeroportuali SpA, which holds a 40 percent interest in Dufrital. The Dufry Group also operates shops at
Bergamo, Brescia, Genoa, Naples, Rome and Verona airports.
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Dufry’s shop at Milan-Malpensa Airport was recently completely renovated and enlarged, having a total
retail surface of 5,176 square meters. As the first flagship shop to carry the new corporate design, it now offers
its customers an extended product range that includes, together with a range of traditional duty-free products, an
assortment of Italian fashion and home-made gourmet foods. Dufry opened nine new shops at Rome’s main
airport Fiumicino in 2005 that are operated under agreements with Aeroporti di Roma SpA. These shops have a
range of listings, from a fashion multi brand shop and an Armani boutique to an Il Canestro brand food store.
In addition, Dufry’s wholly-owned subsidiary Dufry Italia SpA operates shops at the railway stations in
Rome, Milan and Turin with a total retail surface of 4,084 square meters under agreements with Grandi Stazioni
SpA. Shops in Florence and Naples are scheduled to open in 2009.
In the Spanish market, Dufry secured concessions at Bilbao Airport, Tenerife Sur Airport and Las Palmas
de Gran Canaria Airport. These shops are operated under agreements with Aeropuertos Espanoles y Navegacion
Aerea (“AENA”). The shop at Bilbao Airport is a specialty shop listing a selection of women’s and men’s
fashion by international designers. The shop at Tenerife Sur Airport, a general travel retail shop, offers a range
of traditional duty-free products and other products such as electronics and travel accessories.
In the Czech Republic, Dufry operates 7 duty free shops at Ruzyne International Airport in Prague, the only
international airport in the Czech Republic. The shops cover a surface of totally 550 square meters und offer the
full assortment of duty free products ranging.
Africa
This region includes Dufry’s operations in Tunisia, Egypt, Algeria, Morocco, Ghana and Ivory Coast and
has its headquarters in Tunis.
The following table sets forth the locations of Dufry’s shops in Africa at June 30, 2008.
Country Shop location
Algeria Algiers Houari Boumediene International Airport
Egypt Sharm-el-Sheikh Airport
Ghana Accra KotoKa Airport
Accra Diplomatic Shop (Downtown)
Ivory Coast Abidjan Félix Houphouet-Boigny Airport
Morocco Agadir Al Massira Airport
Casablanca Mohammed V Airport
Marrakech Menera Airport
Rabat Salé Airport
Tanger Ibn Battouta Boukhalef Airport
Tunisia Djerba Zarzis International Airport
Monastir Habib Bourguiba International Airport
Sfax Thyna International Airport
Tabarka 7 Novembre International Airport
Tozeur Nefta International Airport
Tunis Carthage International Airport
Dufry’s largest operation in this region, by country, is in Tunisia where the Dufry Group’s wholly-owned
subsidiary, Dufry Tunisia SA, is the primary operator of the non-catering travel retail shops in Tunisia’s six
airports, providing a total of 4,324 square meters of retail space, under agreements with the Tunisian
government’s Office de l’Aviation Civile et des Aeroports.
Dufry has also recently expanded its operations in Morocco, adding retail operations at Rabat Airport and
Tanger Airport to its existing concessions at Agadir Airport, Casablanca Mohammed V Airport and Marrakech
Airport, providing a combined total of 1,424 square meters of retail space. These concessions are operated
pursuant to agreements with the Office National des Aéroports by Dufry Maroc SARL, which is 80 percent
64

owned by Dufry and 20 percent owned by the Dufry Group’s local commercial partner. In 2008, Dufry
expanded its presence at the Mohammed V Airport in Casablanca by adding two new shops with a total surface
of 519 square meters.
In July 2006, Dufry opened its first shops in Algeria at the Algier International Airport. The two shops
cover a total retail surface of 640 square meters und offer the traditional duty-free range.
In 2007, Dufry was awarded a concession for shops in Sharm-el-Sheikh Airport, the second largest airport
in Egypt. The 4 shops in the departure area and 1 arrival shop are operated by the wholly owned subsidiary
Dufry Egypt LLC, with a total retail surface of 858 square meters. The main shop offers the full duty-free
assortment. The other shops are a Bijoux Terner shop, a handicraft & fine food shop and an arrivals shop.
Eurasia
This region includes Dufry’s operations in the Russian Federation, the United Arab Emirates, Singapore,
Cambodia, Serbia and China, and has its headquarters in Sharjah.
The following table sets forth the locations of Dufry’s shops in Eurasia at June 30, 2008.
Country Shop location
Cambodia Phnom Penh Airport
Siam Reap Angkor Airport
China Hong Kong International Airport
Russian Federation Moscow – Domodedovo Airport
Moscow – Sheremetyevo Airport
Serbia Belgrade Nikola Tesla International Airport
Singapore Changi Airport
United Arab Emirates Sharjah Airport
Air Arabia (inflight sales)
Dufry’s largest operation in this region, by country, is in the Russian Federation, where the Company’s
wholly-owned subsidiary, Dufry East, is the primary operator of the non-catering travel retail shops at
Moscow’s Domodedovo Airport, with a floor area of 785 square meters at June 30, 2008. Some shops were
completely refurbished and expanded in 2007. These shops are operated under agreements with the
Domodedovo Airport Authorities. In 2007, new shops were opened at Sheremetyevo Airport, operated by the 69
percent owned subsidiary Dufry Moscow Sheremetyevo. The new shops occupy 3,226 square meters and offer
the full range of duty-free products. Dufry was selected as the only operator for the duty-free area of Terminal C
in an open tender.
Another significant market for Dufry’s operations in this region is the United Arab Emirates, where its 51
percent majority-owned subsidiary Dufry Sharjah FZC is the sole operator of the duty-free shops at Sharjah
Airport. These shops are operated under an agreement with the Sharjah Civil Aviation Authority, which holds
the remaining 49 percent stake in Dufry Sharjah FZC. In 2008, Dufry completed the refurbishment and
expansion program for its main duty-free store. The new floor area is 2,312 square meters.
Over the past two years, Dufry has significantly increased its operations at Singapore Changi Airport. In
2004, it opened five new shops: a flagship chocolate and delicatessen shop, three other chocolate shops and one
camera shop. In January 2005, it opened a computer and software shop, a Bijoux Terner shop and a specialized
shop listing a large selection of luxury watches. These shops are operated under agreements with the Civil
Aviation Authority of Singapore (“CAAS”). In 2007, Dufry won the concession for the retail of Formula 1
merchandise. As of 2008, Dufry has an exclusivity over the multi brand electronics concessions in Changi’s
airport brand new terminal 3. This new state-of-the-art multi-brand electronics, computers and cameras shop
with a total retail area of 500 square meters introduces “a shop in shop” concept. All major manufacturers have
a dedicated area where they can display and promote their products based on their own marketing approaches.
65

In October 2005, Dufry secured four concessions for five shops at Hong Kong International Airport. The
shops are operated under an agreement with the Hong Kong Airport Authorities.
In Serbia, Dufry operates Belgrade Nikola Tesla International Airport under a master concession agreement
that covers all commercial activities (Retail and Food & Beverage) both land side and airside.
In 2006, Dufry opened three new shops with a total surface of 336 square meters at the Siem Reap
International Airport, Cambodia. One of the shops offers Cambodian handy crafts like bags, scarves, garment
made of Asian silk, wooden interior ornaments and souvenirs.
�orth America & Caribbean
This region includes Dufry’s operations in Mexico, the United States, many Caribbean Islands and
Nicaragua with its headquarters in Miami.
The following table sets forth the locations of Dufry’s shops in North America and the Caribbean at June
30, 2008.
Country Shop location
Antigua Antigua (downtown shop)
Aruba Oranjestad (downtown and airport shops)
Barbados Bridgetown (downtown, port and airport shops)
Bahamas Grand Bahama Island Airport
Freeport (downtown and airport shops)
Bonaire Bonaire (downtown shop)
Cayman Islands Georgetown (downtown shop)
Curacao Hato International Airport
Dominican Republic Puerto Plata Airport
La Romana Airport and Sea Port
Samana Airport
Santiago Airport
Santo Domingo Airport and Sea Port
Grand Turk Grand Turk (port shop)
Grenada St Georges (downtown, port and airport shops)
Jamaica Westmoreland (downtown shop)
Mexico Cancun (downtown shops)
Cozumel (Punta Langosta port shops)
Guadalajara International Airport
Laredo (border shop)
Sane Jose de Los Cabos International Airport
Mexico City Airport
Monterrey International Airport
Progreso (border shop)
Puerto Vallarta International Airport
Reynosa (border shop)
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Country Shop location
Nicaragua El Espino (border shop)
Guasaule (border shop)
Las Manos (border shop)
Managua Airport
Peñas Blancas (border shop)
Puerto Rico Luis Marin Muñoz Airport
St. Lucía Castries (downtown, port and airport shops)
St. John Cruz Bay (port shop)
St. Maarten St Maarten (downtown and airport shops)
St. Thomas St. Thomas (downtown shop)
Trinidad Port of Spain Airport
United States George Bush International Airport (Houston)
Newark Liberty International Airport (NJ)
JFK Airport (NY)
Dufry’s largest operation in this region, by country, is in Mexico where the Company’s wholly-owned
subsidiary, Dufry Mexico SA de CV, operates 50 duty-free shops and international boutiques at 5 airports and 2
seaports. These shops are operated under agreements of varying duration and varying fee structures. Of its 50
shops in Mexico, 40 are at Mexico City’s Benito Juárez Airport. These shops are operated under agreements
with Inmobiliaria Fumisa, SA de CV.
In addition to Mexico City, Dufry operates 2 shops at Puerto Vallarta International Airport, 2 shops at
Monterrey International Airport, 2 shops at the San Jose de los Cabos International Airport and 2 shops at the
Guadalajara International Airport. These shops carry a range of traditional travel retail products including
perfumes and cosmetics, liquors, confections and tobacco.
Dufry Mexico SA de CV also operates 2 port shops, 1 shop at Puerta Maya and 1 shop at Punta Lagosta,
under agreements with Cozumel Cruise Terminal, SA de CV and GICSA, SA, respectively. At Puerta Maya,
Dufry offers a range of traditional duty-free products in 200 square meters of retail space located in the
Shopping Plaza of the Terminal’s welcome center. The Punta Lagosta operation features a general travel retail
shop.
Duty Free Caribbean is another important component of the Dufry Group’s operations in this region.
Formed in October 2000, Duty Free Caribbean is 60 percent owned by Dufry with the other 40 percent owned
by Cave Shepherd & Co., a Barbados-based public limited company. As a retail leading business in Barbados,
Cave Shepherd brings significant benefits to the partnership with its more than 100 years of experience in the
retail business in Barbados and the Caribbean.
As of September 30, 2008, Duty Free Caribbean included a total of 28 stores in the islands of Barbados, St.
Lucía, Bahamas and Grenada and 34 ‘Colombian Emeralds International’ stores in the islands of Barbados,
Grenada, St. Lucía, Grand Cayman, St. Maarten, Aruba and Antigua. These stores cover a wide range of
products including core travel retail categories of jewelry and watches, perfume and cosmetics and wine and
spirits and tobacco along with sunglasses, leather, cameras, electronics, music, designer clothing, sports goods,
souvenirs and t-shirts. This wide product range is managed by local and regional operators with a long and
successful history of business and experience in the Caribbean region.
The Company’s wholly-owned subsidiary Inversiones Tunc, SA is the primary operator of duty-free shops
under an agreement with Aeropuertos Dominicanos Siglo XXI, S.A. (“AERODOM”) at the six airports in the
Dominican Republic operated by AERODOM.
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Since 2007, through the Company’s wholly-owned subsidiary, Inversiones Panamo SA, the Company
operates 3 shops at La Romana International Airport and 4 shops at Santiago International Airport, both in the
Dominican Republic.
Dufry opened a port shop at Grand Turk Island, Turks & Caicos in the first quarter of 2006. This shop is
operated under an agreement with Grand Turk Cruise Terminal Limited.
On December 17, 2006, the Group acquired 100 percent of the share capital of the Luis Bared Group with
23 shops in Puerto Rico and other Caribbean locations, including the shops at the Luis Marin Muñoz Airport
(Puerto Rico) and shops in Aruba, Bonaire, St. Maarten and St. Thomas.
In December 2007, Dufry opened six duty-free shops with a total of 633 square meters retail space at the
Reina Beatrix International Airport in Aruba, covering the full assortment of duty-free products.
In December 2007, Dufry opened four duty-free shops with a total of 575 square meters retail space at the
Reina Beatrix International Airport in Aruba, covering the full assortment of duty-free products. In 2008, Dufry
opened two new shops at La Romana International Airport and four new shops at El Cibao International Airport
in Santiago de los Caballeros (Dominican Republic). At La Romana International Airport, two new duty-free
shops started their operations in January 2008. The first shop of 286 square meters is located in the departure
area of the airport while the second shop of 19 square meters is in the arrival area. Both shops offer the full
assortment of duty-free products. At El Cibao International Airport, Dufry opened three departure shops totaling
394 square meters and an arrival shop of 117 square meters.
Dufry’s operations in the Caribbean region are subject to the extreme weather events that occur each year
during the months of July to October. For example, in 2004, Hurricane Ivan damaged the Dufry Group’s shops
at Grenada, the Cayman Islands and the Bahamas and in 2005, Hurricane Wilma destroyed the Dufry Group’s
port shops at the Cozumel cruise line terminal and damaged some of its Cancun shops. In September 2008, the
hurricane Ike produced major damages to the harbor infrastructure of the Turks and Caicos Islands. The Dufry
Group has business interruption insurance policies that compensate it for certain losses as a result of such
events.
South America
This region includes Dufry’s operations in Brazil, Bolivia and on board Norwegian Cruise Line Ships and
has its headquarters in Hamilton (Bermuda).
The following table sets forth the locations of Dufry’s shops in Americas and Caribbean at June 30, 2008.
Country Shop location
Brazil Belo Horizonte, Tancredo Neves International Airport
Brasília, Juscelino Kubitschek International Airport
Florianópolis, Hercilio Luz International Airport
Fortaleza, Pinto Martins International Airport
Natal, Augusto Severo International Airport
Porto Alegre, Salgado Filho International Airport
Recife, Guararapes International Airport
Rio de Janeiro, Galeão International Airport, Santos
Dumont Domestic Airport and downtown
São Paulo, Congonhas International Airport, Guarulhos
International Airport and downtown
Bolivia La Paz, El Alto International Airport
Santa Cruz de La Sierra, Viru Viru International Airport
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Country Shop location
NCL Norwegian Dawn
Norwegian Dream
Norwegian Gem
Norwegian Jade
Norwegian Jewel
Norwegian Majesty
Norwegian Pearl
Norwegian Sky
Norwegian Spirit
Norwegian Star
Norwegian Sun
MSC Lirica
DSA, a Bermudan company, is the leading duty-free operator in Brazil, the largest travel retail market in
South America. It also operates duty-paid shops in airports and other selected locations in Brazil, as well as
duty-free shops in Bolivia and on board cruise ships owned by NCL and C.I. Cruises International S.A.
In March 2006, Dufry and Advent acquired Dufry do Brasil and Eurotrade, now subsidiaries of DSA. On
September 29, 2006 DSA was incorporated with the purpose of holding Dufry’s South American travel retail
operations. On December 16, 2006 Dufry launched the initial public offering of DSA, listing DSA’s shares at
the Luxembourg Stock Exchange and issuing BDR’s listed on the BOVESPA. Dufry still holds 51 percent in
DSA today, the other 49 percent are publicly held.
As of June 30, 2008 DSA had the following subsidiaries: Dufry South America Investments S.A., Dufry do
Brasil Duty Free Shop Ltda., Iperco Comércio Exterior SA, EMAC Comércio Importação Ltda., Flagship Retail
Services, Inc., Dufry Bolivia S.A. and Eurotrade Ltd.
As of June 30, 2008 DSA’s travel retail business consisted of 90 duty-free and duty-paid shops, including
42 duty-free and duty-paid shops in 13 of the major international and domestic airports in South America, 41
shops on 12 cruise ships, 11 of which are operated by NCL and 1 by C.I. Cruises International S.A. (MSC
Lirica) and 10 other retail shops located in prime retail areas in São Paulo and Rio de Janeiro.
In the second quarter of 2008, two new duty-free and one duty-paid stores were opened at the Tancredo
Neves International Airport, in Belo Horizonte, and one duty-paid store at Augusto Severo International Airport,
in Natal. In addition, DSA was awarded new concessions for two duty-free stores at Deputado Luiz Eduardo
Magalhães International Airport, in Salvador. DSA intends to reinforce its presence on cruise line ships seeking
new concessions on board ships in the Caribbean and also along the Brazilian coast.
Dufry’s wholly-owned subsidiary Flagship Retail Services, Inc is the sole operator of shops on 12 vessels,
11 of which are operated by NCL. At the end of 2007, new operations were started on two new large capacity
ships, including the MSC Lirica. Besides, new shops were opened on the Norwegian Jade in February 2008 and
the Norwegian Sky on July 2008. At the end of 2008, Flagship is scheduled to commence operations on board of
a second MSC vessel, the MSC Orchestra.
Hudson
This region includes Dufry’s duty-paid convenience stores in North America. This segment was formed in
2008 in the course of the integration of the Hudson Group. It operates 550 news stores, convenience stores,
bookstores, cafes and special retail concessions in 61 airports and other transportation terminals across the
United States and Canada. It has its headquarters in East Rutherford, NJ. Hudson currently operates with more
than 130 lease and concession agreements. Its portfolio consists of mid- and long-term contracts. Contracts
recently won by Hudson include concessions at Cleveland Hopkins International Airport, at the JFK JetBlue
Terminal, in Atlantic City and Nashville. It has a high rate of retention of existing contracts above 90% and only
lost three contracts of significance in the past five years.
69

Dufry intends to roll out Hudson’s business model internationally over the next three to four years,
primarily focusing on airports where it already operates similar duty-paid concepts or where it already has a
significant presence in duty-free retailing.
The following table sets forth the locations of Dufry’s shops in the United States and Canada at June 30,
2008.
Country Shop location
United States Albuquerque
Anchorage
Atlantic City International, NJ
Birmingham
Boston Logan
Burlington
BWI
Charleston International
Chicago Midway
Chicago O’Hare
Cincinnati|No. KY
Cleveland
Dallas - Love Field
Dallas - Fort Worth
Denver
Eppley Airfield
Fort Lauderdale Hollywood
Fresno Yosemite International
George Bush Intercontinental Houston
Grand Central Station, NYC
Greenville-Spartanburg
Gulfport-Biloxi International
Harrisburg, PA
Hoboken, NJ
Indianapolis International
Jackson-Evers International
Jacob Javits Convention Center, New York City
JFK
John Wayne, Orange County CA
Journal Square, NJ
LaGuardia
Las Vegas McCarran International
Lehigh Valley
Los Angeles
Manchester
Memphis
Miami
Mobile Regional
Myrtle Beach
Nashville International
New Orleans
Newark Liberty
Newport News
Norfolk, International
Okaloosa, FL
Orlando
Orlando Sanford
Out of Town News, Cambridge, MA
Penn Station, NYC – Newark
Philadelphia
Phoenix Sky Harbor
70

Competition
Country Shop location
Pittsburgh
Port Authority Bus Terminal NYC – NJ
Portland International
Raleigh-Durham
Richmond
Roanoke Regional
Rochester
Ronald Reagan Washington
San Francisco
Seattle-Tacoma
Shreveport Regional
Stewart International
UN Gift Centre, NYC
Union Station, Washington, DC
Washington Dulles
William P. Hobby
World Trade Center PATH, NYC
Canada Calgary, AL, Canada
Halifax, NS
Vancouver, BC, Canada
Dufry faces two quite different forms of competition in the travel retail market.
First, the Dufry Group competes with a limited number of other major global travel retailers as well as with
regional travel retailers for concessions at airports, seaports and other channels of travel. Travel retailers
compete primarily on the basis of their experience and reputation in travel retailing, including their relationships
with suppliers and airport or other authorities, their experience in a particular region, their ability to respond to
the needs of an airport authority or other landlords for planning and design advice as well as operational ability,
and price, as a concession may be awarded in a tender based upon the highest concession fee offered. In
addition, certain travel retailers have a competitive advantage based upon specific local circumstances.
The global travel retail market is highly fragmented with more than 2,500 players with the top five global
travel retailers accounting for only 31.8 percent of the worldwide market for sales to travelers and no one
retailer which has more than a 8 percent share of the market. Regional market participants also account for a
significant share of their respective markets.
In airport retailing, Dufry’s main competitors in Europe are the major retailers Autogrill (including Aldeasa,
Alpha Airports Group and World Duty Free), The Nuance Group, as well as Gebrüder Heinemann, a Hamburgbased
trading company that specializes in the international travel market. In Eurasia and Asia the Company’s
main competitors are DFS, a subsidiary of LVMH, and the Irish state-owned company, Aer Rianta International,
The Nuance Group, and Lotte, the Korean retail conglomerate as well as Dubai Duty Free. In the Americas and
Caribbean, Autogrill and DFS as well as the regional retailers such as Duty Free Americas and Aeroboutique are
the Company’s main competitors for airport retail concessions.
71

After the integration of Hudson, the Dufry Group will have a global travel retail market share of 7.0
percent.
DFS
Autogrill
Dufry + Hudson
Gebr Heinemann
Duf ry
Nuance
Aer Rianta
Lotte
Duty Free Dubai
3.0%
3.0%
2.6%
72
4.7%
5.2%
7.0%
6.7%
7.6%
7.6%
0% 1% 2% 3% 4% 5% 6% 7% 8%
Source: UBS Research, Generation AB and Dufry.
Hudson faces competition from local North American operators as well as large multinational companies.
The closest competitor is Paradies, based in Atlanta, who, as of December 31, 2007, operated 450 stores in 71
airports in the United States and generated estimated revenues of about US$ 450 million. In addition, Autogrill
became a strong competitor primarily in the field of food and beverages, but as well in the news and gift
business due to its acquisition of Host Marriott Services. Lagardère Services operates about 325 news and gift
stores in North America. Further competitors are Delaware North, Buffalo NY, Stellar Partners, Tampa FL,
Borders Group and Travel Traders, Miami FL, which mainly operates in hotels.
In addition to competing with other travel retailers for concessions, Dufry also competes for customers
directly with other travel retailers in many of its locations of operation, such as airport terminals or railway
stations, and, as its range of products increases, indirectly with traditional ‘High Street’ retailers. The level of
competition varies greatly among the different locations where the Company operates. For example, in some
airport terminals, the Dufry Group is the sole duty-free operator, while in others its shops compete with other
retailers.

Regulation
Dufry’s operations are subject to a range of laws and regulations adopted by national, regional and local
authorities in the various jurisdictions in which Dufry operates.
Generally, in the countries where Dufry operates, its duty-free shops are considered to be “bonded
warehouses”, which allows Dufry’s customers to avoid paying special taxes, such as excise and duty, when they
purchase goods while in international transit. This special status subjects Dufry to bonded warehouse regulations
that require, for example, that bonded merchandise not be commingled with domestic and other unbonded
merchandise.
Dufry is also subject to certain truth-in-advertising, general customs, consumer and data protection, product
safety, workers’ health and safety and food product safety regulations that regulate retailers generally and
govern the promotion and sale of merchandise in the various jurisdictions in which Dufry operates.
In addition, many airport authorities require Hudson to partner with a Disadvantaged Business Enterprise
(“DBE”). The most common partnership model is the co-ownership of the retail location between a DBE and
Hudson through a Joint Venture. These relationships are subject to regulation and compliance oversight.
Properties
Dufry’s head office is located in Basel, Switzerland where it leases an office building of 1,704 square
meters. In addition, Dufry has leases for its six regional headquarters: in Milan, the Dufry Group leases 611
square meters; in Tunisia, the Dufry Group leases 1,396 square meters; in Sharjah, the Dufry Group leases 343
square meters; in Miami, the Dufry Group leases 2,630 square meters; in Rio de Janeiro, the Dufry Group leases
2,750 square meters and in East Rutherford, NJ, the Dufry Group leases 5,760 square meters. Management
believes that these facilities are adequate for Dufry’s present needs in all material respects, except of East
Rutherford where additional space will be rented.
Employees
As of June 30, 2008 Dufry (excluding Hudson) had 7,180 employees (FTE’s), 1,052 in Europe (incl. HQ),
2,383 in North America & Caribbean, 1,963 in South America, 888 in Eurasia and 894 in Africa. The following
table provides details of the number of employees by region for the years ended December 31, 2005, 2006 and
2007.
73
�umber of Employees as at December 31,
Region 2005 2006 2007
Europe (incl. HQ) ........................................................................................... 995 983 1,001
North America & Caribbean ........................................................................... 1,941 2,345 2,469
South America ................................................................................................ 176 1,677 1,882
Eurasia ............................................................................................................ 640 787 867
Africa .............................................................................................................. 667 734 875
Total ................................................................................................................ 4,419 6,526 7,094
As of June 30, 2008 Hudson had 4,408 employees (FTE’s). At December 31, 2007 and 2006 Hudson had
4,132 and 3,830 employees, respectively.
Intellectual Property
In its key markets, Dufry either holds the trademark Dufry or its application for the trademark is pending.
For the duty-paid segment, Dufry holds the trademarks Hudson News, Hudson Group and Hudson Booksellers
or its application for the trademark is pending. Either Management believes that Dufry does not own any patents
and does not own any additional trademarks or licenses the absence of which could have a material adverse
effect on the Group’s business operations.

Insurance
Dufry has obtained insurance coverage for its operations at levels which Management considers prudent
and in conformity with industry standards. Dufry has taken out global coverage for a variety of risks and
activities, including general liability, property (all risks) and business interruption insurance. These insurance
policies generally exclude acts of willful misconduct and gross negligence. Dufry intends to continue its practice
of obtaining global insurance coverage where practicable, increasing coverage where necessary and reducing
costs. Management does not anticipate any difficulty in obtaining adequate levels of insurance in the future.
Interruption of Business
In 2005 and 2006, 9 shops located in the state of Yucatan, Mexico, were closed for approximately 7 to 12
months due to damages caused by the hurricane Wilma. Most of the economical consequences have been
compensated by the respective insurance. In September 2008, the hurricane Ike produced major damages to the
harbor infrastructure of the Turks and Caicos Islands. Due to the interruption of the passenger flow, this
operation suspended its activities until early October 2008, when the cruise ships reassumed their regular visit to
the islands. Apart from above mentioned interruptions, Dufry has not experienced any material business
interruptions during the past three years.
Legal Proceedings
Dufry has extensive global operations and is both a defendant and a plaintiff in a number of court and
administrative proceedings in the various jurisdictions in which it operates. Certain items are provisioned for as
necessary in the ordinary course of business and Management believes current provisions are adequate.
However, Dufry is not aware of any currently pending or threatening legal proceedings that, individually or in
aggregate, are likely to have a material adverse effect on its business, financial condition or results of operation.
74

Board of Directors
DIRECTORS A�D MA�AGERS
According to the Company’s Articles of Incorporation (the “Articles”), the Board of Directors consists of at
least three members. Each member of the Board of Directors is elected for a term of maximum five years, with a
year being understood as the period running from one ordinary shareholders’ meeting to the next. Members may
be re-elected. Each year the Board of Directors shall be renewed by rotation, to the extent possible in equal
numbers and in such manner that after a period of three years, all members will have been subject to re-election.
The members of the Board of Directors are appointed or removed exclusively by a resolution of the
shareholders.
The Board of Directors’ non-transferable and inalienable duties according to Swiss company law include
the ultimate direction of the business and the supervision of the Management. The Board of Directors may also
pass resolutions on all matters that are not reserved for the shareholders’ meeting by law or by the Articles (for
more details, see “—Definition of areas of responsibilities”).
According to the current board regulations (Organisationsreglement) enacted by the Board of Directors, the
Board of Directors appoints the Chairman and the Vice-Chairman, as well as the Secretary. Resolutions of the
Board of Directors are passed by the majority of the votes cast by the members present. Abstentions have the
effect of “no” votes. In case of a tie, the acting chairman has the casting vote. No quorum is required for a
resolution implementing capital increases (Feststellungsbeschlüsse) and the amendments of the Articles in
connection with capital increases pursuant to art. 651a, 652g and 653g of the Swiss Code of Obligations.
Resolutions may also be passed by way of prospectus resolution without a meeting the Board of Directors,
unless one member requests oral discussion. Prospectus resolutions must be approved by a majority of the
members of the Board of Directors.
In accordance with the board regulations, the Board of Directors has delegated the operational management
of the Company to the Chief Executive Officer. In addition, the Board of Directors has established an audit
committee and a nomination and remuneration committee (for more details, see “—Board Committees”).
The following table sets forth the name and terms of the current seven members of the Board of Directors,
followed by a short description of each member’s business experience, education and activities:
�ame
75
Year of
first election
End of
term
Juan Carlos Torres Carretero ......................................................................................... 2003 2011
Ernest George Bachrach ................................................................................................ 2004 2011
Xavier Bouton ............................................................................................................... 2005 2009
Jaime Carvajal Urquijo ................................................................................................ 2006 2011
Mario Fontana ............................................................................................................... 2005 2010
Luis Andrés Holzer Neumann ....................................................................................... 2004 2010
Joaquin Moya-Angeler Cabrera ..................................................................................... 2005 2010
Juan Carlos Torres Carretero is the chairman of Dufry’s Board of Directors. He is the Managing Director
and senior partner in charge of Advent International Corporation’s investment activities in Latin America. He
serves as a member of the board of directors of Aeroplazas SA de CV, Inmobiliaria Fumisa SA de CV, Dufry
South America Ltd, Hildebrando S.A. de C.V., Controladora Milano S.A. de C.V., International postal Service,
International Meal Corporation, Nuevo Banco Comercial, Uruguay and Gayoso S.A. de CV. Mr Torres
Carretero holds an MS in physics from the Universidad Complutense de Madrid and an MS in management
from MIT’s Sloan School of Management. Mr Torres Carretero was born in 1949 and is a citizen of Spain.
Ernest George Bachrach is the vice chairman of Dufry’s Board of Directors. He is the Chief Executive
Latin America for Advent’s Latin American investment program and a senior partner and a member of the
executive committee of Advent International Corporation. He serves as a member of the board of directors of
Dufry South America Ltd, Bunge Group, NBC, Impactos, Frecuencia y Cobertura en Medios, SA de CV,
Hipotecaria Casa Mexicana, Grupo Gassoyo, Controladora Milano, International Meal Company, Latin
American Airport Holding and Scitum Integracion, S.A. de C.V. Mr. Bachrach holds a BS in chemical
engineering from Lehigh University and an MBA from Harvard Business School. Mr. Bachrach was born in
1952 and is a citizen of the United States.

Xavier Bouton is chairman of the board of directors of F.S.D.V. (Fayenceries de Sarreguemines, Digoin &
Vitry le François) and member of the board of directors of ADL Partner. Mr. Bouton holds a diploma in
economics and finance from l’Institut d’Etudes Politiques de Bordeaux and a doctorate in economics and
business administration from the University of Bordeaux. Mr. Bouton was born in 1950 and is a citizen of
France.
Jaime Carvajal Urquijo is a partner of Advent International Corporation and a chairman of Advent
International Advisory S.L., Ericsson Espãna S.A. and Asea Brown Boveri S.A. He is vice chairman of Grupo
Ferrovial and serves as a member of the board of directors of Aviva S.A., Solvay Iberica S.A. and HUNE, S.A.
Mr. Urquijo holds a Master in Law from the University of Madrid and a Master of Arts (Economics) from
Cambridge University. Mr. Urquijo was born in 1939 and is a citizen of Spain.
Mario Fontana serves as member of the board of directors of Hexagon AB, Inficon, Swissquote and X.Rite.
Mr. Fontana has studied engineering at the Swiss Federal Institute of Technology and holds a Master of Science
of the Georgia Institute of Technology. Mr. Fontana was born in 1946 and is a Swiss citizen.
Luis Andrés Holzer �eumann is the president of Grupo Industrial Omega, S.A. de C.V., the holding
company of Holzer y CÍA, S.A. de C.V., Industria Nacional de Relojes Suizos, S.A. de C.V., Consorcio
Metropolitano Inmobiliario, S.A. de C.V., Inmobiliara Coapa Larca, S.A. de C.V., Inmobiliara Castellanos, S.A.
de C.V. and Negocios Creativos, S.A. de C.V. He is the chairman of Aeroplazas de Méxicos, S.A. de C.V. and
Inmobiliaria Fumisa S.A. de C.V. and serves as a member of the board of directors of Opequimar, S.A. de C.V.
and Grupo Domit. Mr. Holzer Neumann is a graduate of Boston University and holds an MBA from Columbia
University. Mr. Holzer Neumann was born in 1950 and is a citizen of Mexico.
Joaquin Moya-Angeler Cabrera is the chairman of Redsa, S.A., Hildebrando S.A. de C.V., Presenzia,
Corporación Tecnológica Andalucia, Trustees University of Almeria, La Quinta Group, Inmoan S.L. and
Avalon Private Equity. He serves as a member of the board of directors of Indra Sistemas SA, Corporación
TEYPE, Palamon Capital Partners and MCH Private Equity. Mr. Moya-Angeler Cabrera holds a master’s
degree in mathematics from the University of Madrid, a diploma in economics and forecasting from the London
School of Economics and Political Science and an MBA from MIT’s Sloan School of Management. Mr. Moya-
Angeler Cabrera was born in 1949 and is a citizen of Spain.
Definition of areas of responsibility
The Board of Directors is the ultimate corporate body of the Company. It further represents the Company
towards third parties and shall manage all matters which by law, Articles of Incorporation or regulation have not
been delegated to another body of the Company. In accordance with the Board Regulations
(Organisationsreglement), the Board of Directors has delegated the operational management of the Company to
the Chief Executive Officer who is responsible for the overall management of the Dufry Group.
The Board of Directors decides on all activities of the Company for which it is responsible under Swiss law
(especially art. 716a of the Swiss Code of Obligations on non-transferable and inalienable duties of the Board of
Directors), the Articles, and the organizational regulations. According to article 15 of the Articles, the Board of
Directors has sole authority for the following matters:
ultimate direction of the business of the Company and the power to give the necessary directives;
determination of the organization of the Company;
administration of the accounting system, financial control and financial planning;
appointment and removal of the members of the committees installed by itself and of the persons
entrusted with the management and representation of the Company, as well as the determination of
their signatory power;
ultimate supervision of the persons entrusted with the management of the Company, in particular with
respect to their compliance with the law, the Articles, regulations and directives;
preparation of the business report and the meetings of shareholders and carrying out the resolutions
adopted by the meeting of shareholders;
76

notification of the judge if liabilities exceed assets;
passing of resolutions regarding the subsequent payment of capital with respect to non-fully paid-in
shares;
passing of resolutions confirming increases in share capital and the amendments to the Articles entailed
thereby;
non-delegable and inalienable duties and powers of the board of directors pursuant to the Swiss Merger
Act;
examination of the professional qualifications of the statutory auditors;
approval of any non-operational or non-recurring transaction not included in the annual budget and
exceeding the amount of CHF 2,000,000;
issuance of convertible debentures, debentures with option rights or other financial market instruments;
approval of the annual investment and operating budgets of the Company and the Dufry Group; and
approval of the executive regulations promulgated in accordance with these Regulations.
Board Committees
The Board of Directors has established an Audit Committee and a Nomination and Remuneration
Committee to further strengthen the corporate governance structure of the Company. Both Committees are
assisting the Board of Directors in fulfilling its duties and have also decision authority to the extent described
below.
Audit Committee
The Audit Committee currently consists of Joaquin Moya-Angeler Cabrera (Chairman), Juan Carlos Torres
Carretero and Mario Fontana, all of which are non-executive and independent members of the Board of
Directors. An independent member is a non-executive member, has not been an executive member in the last
three years and does not have major business relations with the Company.
The Audit Committee assists the Board of Directors in fulfilling its duties of supervision of management. It
is responsible for the review of the performance and independence of the external auditors, the review of the
audit plan and the audit results and the monitoring of the implementation of the findings by management, the
review of the internal audit function and concept, the assessment of the risk management and the decision on
proposed measures to reduce risks, the review of the compliance with the internal audit and risk management, as
well as the review to propose whether the Board of Directors should accept the Company’s accounts.
The Audit Committee regularly reports to the Board of Directors on its decisions, assessments, findings and
proposes appropriate actions. The Audit Committee generally meets at the same dates the Board of Directors
meetings take place, although the Chairman may call meetings as often as business requires. The length of the
meetings lasted usually for about 3 to 4 hours in fiscal year 2007, during which the Audit Committee held 6
meetings.
�omination and Remuneration Committee
The Nomination and Remuneration Committee currently consists of Ernest George Bachrach (Chairman),
Luis Andrés Holzer Neumann and Juan Carlos Torres Carretero.
The Nomination and Remuneration Committee assists the Board of Directors in fulfilling its nomination
and remuneration related matters. It is responsible to assure the long-term planning of appropriate appointments
to the positions of the CEO and the Board of Directors, as well as for the review of the remuneration system of
the Company and for proposals in relation thereto to the Board of Directors. The Nomination and Remuneration
Committee makes proposals in relation to the remuneration of the Chief Executive Officer and of the members
of the Board of Directors. The Board of Directors has the ultimate authority to approve such proposals. The
Nomination and Remuneration Committee decides on the overall size of the Restricted Stock Unit (“RSU”)
77

plan to be granted under the Company’s current RSU plan and makes proposals on the grant of options or other
securities under any other management incentive plan of the Company, if any.
The Nomination and Remuneration Committee meets as often as business requires. The meetings usually
lasted for about 2 to 3 hours in fiscal year 2007, during which the Nomination and Remuneration Committee
held 2 meetings.
Dufry Group Executive Committee
As of the date of this Listing Prospectus, the Dufry Group Executive Committee comprises ten executives.
The Dufry Group Executive Committee, under the control of the CEO and the Board of Directors, conducts the
operational management of the Company pursuant to the Company’s board regulations. The CEO reports to the
Board of Directors on a regular basis.
The following table sets forth the name and date of appointment of the current ten members of the Dufry
Group Executive Committee, followed by a short description of each member’s business experience, education
and activities:
�ame Appointed
Julián Díaz González ............................................................................................................ 2004
Xavier Rossinyol .................................................................................................................. 2004
José Antonio Gea .................................................................................................................. 2004
Pascal C. Duclos ................................................................................................................... 2005
Dante Marro .......................................................................................................................... 2002
Miguel Ángel Martínez ........................................................................................................ 2004
René Riedi ............................................................................................................................ 2001
José H. Gonzalez .................................................................................................................. 2002
José Carlos Costa da Silva Rosa ........................................................................................... 2006
Joseph DiDomizio ................................................................................................................ 2008
Julián Díaz González is Dufry’s Chief Executive Officer. Before his current role at Dufry, Mr. Díaz was the
General Manager of Latinoamericana Duty-Free, SA de CV from 2000 to 2006. Prior to that, he held various
managerial and business positions at Aeroboutiques de Mexico SA de CV and Deor SA de CV from 1997 to
2000 and was a Division Director at Aldeasa from 1993 to 1997. From 1989 to 1993, Mr. Díaz was a General
Manager at TNT Leisure SA. Mr. Díaz earned a degree in business administration from Universidad Pontificia
Comillas de Madrid in 1980. He was born in 1958 and is a citizen of Spain.
Xavier Rossinyol is Dufry’s Chief Financial Officer. Before his current role at Dufry, Mr. Rossinyol held
various positions at Grupo Áreas from 1995 onwards with responsibility for finance, controlling and strategic
planning and left the Áreas Group as its Development Director in 2006. Mr. Rossinyol earned a bachelor’s
degree and master’s degree in business administration from Escuela Superior de Administración y Dirección de
Empresas and from University of British Columbia in 1993 and a master’s degree in business law in 1994 from
Universidad Pompeu Fabra. Mr. Rossinyol was born in 1970 and is a citizen of Spain.
José Antonio Gea is Dufry’s Global Chief Operating Officer. Before his current role at Dufry, Mr. Gea held
various managerial positions at Aldeasa from 1995 onwards and left Aldeasa as its Director of Operations in
2006. Prior to that, he held various positions at TNT Express España, SA from 1989 onwards and was the
Director of its Blue Cow Division from 1993 to 1995. Mr. Gea earned a degree in economics and business
sciences from Colegio Universitario de Estudios Financieros in 1987 and was born in 1963. He is a citizen of
Spain.
Pascal C. Duclos is Dufry’s Group General Counsel and Secretary of the Board. Before his current role at
Dufry, Mr. Duclos was a senior foreign associate at the Buenos Aires law firm Beretta Kahale Godoy from 2006
to 2007 and he was a financial planner at UBS AG in New York from 2001 to 2005. Prior to that, he was an
associate at the New York law firm Kreindler & Kreindler from 1999 to 2001 and a senior associate at the
Geneva law firm Martin & Davidoff from 1991 to 1997. Mr. Duclos earned a licence en droit from Geneva
University Law School and a master’s degree in law from Duke University School of Law. He was born in 1967
and is a Swiss citizen.
78

Dante Marro is Dufry’s Chief Operating Officer, Region Europe. Before joining Dufry in 1981, he served
as a public administrator and as an administrator of the Airport Milano and the Association Airports Italia. He
held various managerial positions at Dufrital SpA as General Manager and Chairman of the Board (1987–1992)
and acted as General Manager and Board Delegate of all Italian companies belonging to the Group from 1992–
2002. Mr. Marro holds graduate degrees in architecture and business administration and was born in 1944. He is
a citizen of Italy. See also “Major Shareholders and Related Party Transactions.”
Miguel Ángel Martínez is Dufry’s Chief Operating Officer, Region Africa. Before his current role at Dufry,
Mr. Martínez was the general manager at Select Service Partner’s subsidiary Madrid Trade Fair Center from
1998 to 2003. Prior to that, he held various managerial positions at Aldeasa SA from 1991 to 1998 and was the
store manager at C&A Valencia and Mallorca from 1986 to 1991. Mr. Martínez holds a bachelor’s of science
degree in economics and business administration from the Universidad de León and was born in 1961. He is a
citizen of Spain.
René Riedi is Dufry’s Chief Operating Officer, Region Eurasia. Before joining the Company in 1993, he
worked in product marketing and international sales at Unilever. Mr. Riedi holds a degree in business
administration from the School of Economy and Business Administration Zurich and was born in 1960. He is a
Swiss citizen.
José H. Gonzalez is Dufry’s Chief Operating Officer, Region America & Caribbean. Before joining the
Company in 1991, Mr. Gonzalez had been active in the retail and wholesale industry in North, Central and
South America for more than 25 years. He holds a bachelor’s of arts degree from Prieto University, Cuba and
was born in 1946. Mr. Gonzalez is a citizen of the United States. See also “Major Shareholders and Related
Party Transactions.”
José Carlos Costa da Silva Rosa is Dufry’s Chief Operating Officer, Region South America. Before joining
the Company in 2006, Mr. Costa da Silva Rosa was Retail Director at ANA-Aeropuertos de Portugal AS from
2000 to 2006. Prior to that, he was director of property management of Richard Ellis from 1993 to 1994 and
general director of Amoreiras Gest. from 2000 to 2006. He holds a Military and Civil Engineer’s degree from
the Academia Militar of Portugal and was born in 1955. He is a citizen of Portugal.
Joseph DiDomizio is Dufry’s Chief Operating Officer, Region Hudson. Before joining the Company in
2008, Mr. Joseph DiDomizio worked 16 years for the Hudson group. He held several managerial positions in
the Hudson Group, from April 2008 onwards as its president and CEO. He holds a Bachelor of Arts degree in
Marketing and Business Administration from the University of Bridgeport and was born in 1970. He is a citizen
of the United States.
Board of Directors, Management Remuneration System and Employee Participation
The Board of Directors determines the amount of the fixed remuneration of its members, taking into
account their responsibilities, experience, and the time they invest in their activity as members of the Board of
Directors. The Nomination and Remuneration Committee makes proposals in relation to the compensation of
the members of the Board of Directors. Extraordinary assignments or work which a member of the Board of
Directors accomplishes outside of his activity as a Board member is specifically remunerated and is approved by
the Board of Directors. In addition, the members of the Board of Directors are reimbursed all reasonable cash
expenses properly incurred by them in the discharge of their duties.
Members of the Group Executive Committee receive compensation packages, which consist of a basic
salary in cash and a performance related cash bonus. The bonus is defined once per year and depends on the
overall financial results of the Group and of specific sub-divisions thereof, as well as on achieving defined goals
by each individual person. The bonus part of the compensation for the Group Executive Committee represented
in 2007 19.5 percent of its total compensation and amounted to CHF 1.9 million in the aggregate. In addition,
fringe benefits such as health insurance in an amount of CHF 0.1 million in aggregate have been granted to
certain members.
In addition, the Company has a RSU plan for certain members of the Management as further described in
N 36 of Dufry’s Consolidated Financial Statements 2007 (see F-57 seq.). Further, Dufry concluded several
agreements with certain managers of Hudson, regarding their participation in the RSU plan and special share
based compensation. A first grant to these managers will not be made before January 1, 2009. Besides the RSU
plan, there is no employee participation plan in place by which employees at all levels could participate in the
capital of Dufry.
79

Compensation of Directors and Management
As to the compensation of the Board of Directors and the Group Executive Committee, refer to F-68.
Share and Option Holdings by Directors and Management
As to the percentage amount of the voting rights in Dufry held by the members of the Board of Directors
and of the Group Executive Committee and the option rights on Shares of Dufry, refer to F-68.
Corporate Governance
In addition to the relevant provisions in the Swiss Code of Obligations, two sets of rules regarding corporate
governance were introduced in Switzerland in July 2005: the Swiss Code of Best Practice for Corporate
Governance (the “Swiss Code”) of Economiesuisse, the largest umbrella organization representing Swiss
business establishments, and the Directive on Information Relating to Corporate Governance of 17 April 2005
of the SIX Swiss Exchange (the “CGD”). The Swiss Code is non-binding and recommends good corporate
standards in line with international business practice. The CGD is binding for Swiss companies whose shares are
listed on SIX and requires them to disclose in their annual report important information on the management and
control mechanisms at the highest corporate level (or to give specific reasons why this information is not
disclosed).
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Major Shareholders
MAJOR SHAREHOLDERS A�D RELATED PARTY TRA�SACTIO�S
The following table shows, based on information provided to the Company by its shareholders, the holdings
of its shareholders, expressed in number of Shares and percentages of the issued and outstanding Shares of the
Company as of the date of this Listing Prospectus.
Shareholder Type of Shares �umber of Shares Percentage
Global Retail Group S.à r.l. (1) .................................................. Registered Shares
Travel Retail Investment SCA
9,036,147 47.03
(2) .................................
Petrus PTE Ltd (3) ................................................................
Witherspoon Investments LLC (4) ................................
Advent International Corporation (5) ................................
Hudson Media Inc. (6) .............................................................. Registered Shares 1,154,677 6.01
Julius Baer Investment Management LLC (7) ........................... Registered Shares 950,868 4.95
Egerton Capital Limited Partnership (8) ................................ Registered Shares 858,478 4.47
Wellington Management Company LLP (9) .............................. Registered Shares 706,671 3.68
Public shareholders ................................................................ Registered Shares 6,507,113 33.86
Total share capital ................................................................ 19,213,954 100.00
(1)
76 Grand Rue, L-1660 Luxembourg City, Grand Duchy of Luxembourg.
(2)
76 Grand Rue, L-1660 Luxembourg City, Grand Duchy of Luxembourg.
(3)
8 Cross Street, #11-00 PWC Building, Singapore 048424.
(4)
1209 Orange Street, Wilmington, DE 19801, USA.
(5)
75 State Street, Boston, MA 02109, USA.
(6)
One Meadowlands Plaza, Suite 902, East Rutherford, NJ 07073, USA. Hudson Media Inc. is controlled by James Cohen,
c/o Hudson Media Inc., One Meadowlands Plaza, Suite 902, East Rutherford, NJ 07073, USA.
(7)
330 Madison Avenue, Suite 12A, New York, NY 10017, USA.
(8)
2 George Yard, London EC3V 9DH, United Kingdom.
(9)
75 State Street, Boston, MA 02109, USA.
Global Retail Group S.à r.l., Travel Retail Investment SCA, Petrus PTE Ltd, Witherspoon Investments LLC
and Advent International Corporation constitute a group for purposes of the disclosure obligation pursuant to
article 20 SESTA. Travel Retail Investment SCA and Global Retail Group S.à r.l. are direct shareholders of
Dufry AG. Both Travel Retail Investment SCA and Global Retail Group S.à r.l. are controlled by funds
managed by Advent International Corporation; other shareholders of Travel Retail Investment SCA are Petrus
PTE Ltd and Witherspoon Investments LLC. The contact person of the group is Mr. Jefferson M. Case (1 617
951 9400).
As of October 2, 2008, Advent-Hudson, LLC has been liquidated and its assets (consisting solely of shares
of Hudson Group) have been distributed to its members, with Global Retail Group S.à r.l. receiving 83.5 percent
of such assets in the liquidation. As of the closing of the transactions contemplated by the Merger Agreement,
the share capital increase out of authorized share capital (Kapitalerhöhung aus genehmigtem Kapital) of Dufry
has been filed with the commercial register in Basel and has been published in the Swiss Official Gazette of
Commerce on October 17, 2008. As a consequence of these transactions, the identity of individual group
members has changed. As closing of these transactions has taken place, Hudson Media Inc. and all of the
members of Advent-Hudson, LLC (other than Global Retail Group S.à r.l.) are no longer members of the group.
On September 3, 2008, Dufry signed a merger agreement with, among others, Hudson Group, which was
majority owned by funds managed by Advent International Corporation. The transaction included a merger
essentially resulting in an exchange of shares of Hudson Group’s common stock for equity of Dufry. The
consideration for equity of Hudson Group was structured as a merger, whereby the non-Dufry shareholders of
Hudson Group received an aggregate of 4,218,750 registered shares of Dufry, which have been sourced from
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Dufry’s existing authorised capital (genehmigtes Kapital), as well as zero-coupon MCNs, which will initially be
convertible into 932,704 registered shares of Dufry at no premium, which have been sourced from Dufry’s
existing conditional capital (bedingtes Kapital). The exchange ratio, at which the shares of Dufry and the MCNs
have been issued, has been determined based on the 3-month weighted average price of the shares of Dufry of
CHF 85 per share and valued 100 percent of Hudson Group’s equity. As of closing of the transactions, the share
capital increase out of authorized capital (Kapitalerhöhung aus genehmigtem Kapital) of Dufry has been filed
with the commercial register in Basel and has been published in the Swiss Official Gazette of Commerce on
October 17, 2008.
Related Party Transactions
Advent International Corporation as well as entities under their control participated in the common
acquisition of our business in Brazil (incl. Eurotrade) at the end of March 2006. In December 2006, they sold
their participation in Dufry South America Ltd on the Initial Public Offering in the São Paulo and Luxembourg
stock exchanges. Their part in the transaction costs related to this Initial Public Offering presents at the end of
December 31, 2007 a balance receivable of CHF 2.7 million (2006: CHF 6.5 million).
Dufry Mexico SA de CV operates shops at Mexico City’s Benito Juarez Airport under agreements with
Inmobiliaria Fumisa, SA de CV. Advent International Corp., the entity managing the funds that controls the
Company’s largest shareholder, also manages other funds that control Inmobiliaria Fumisa, SA de CV. In
addition, three of the members of the Company’s Board of Directors are also directors of Inmobiliaria Fumisa,
SA de CV. According to the concession agreements, the Company is required to compensate Inmobiliaria
Fumisa SA de CV through monthly fee payments for the use of the shops at the Mexico City Airport. In 2007,
total rent amounted to CHF 22.8 million (2006: CHF 20.1 million). For the first six months of 2008, total rent
amounted to CHF 10.5 million (2007: CHF 11.3 million).
In September 2008, funds controlled by Advent International Corporation acquired Aeropuertos
Dominicanos Siglo XXI SA (“AERODOM”), the leading airport group in the Dominican Republic. The lease
agreements between Aerodom and the Dufry Group regarding the premises in the Dominican Republic, as well
as the existing concession agreement, remained unchanged after this transaction.
In addition to his employment relationship with the Group, Mr. Dante Marro, Chief Operating Officer for
region Europe and member of the Group Executive Committee, acting through Gestione Spazi Attrezzati Srl
(„GSAS“), was granted rights of usufruct over 10 percent of the Company’s shareholding in its wholly owned
subsidiary Dufry Shop Finance Limited Srl in 2002. The rights of usufruct granted to GSAS, which will expire
at the latest on December 31, 2020, permit it to enjoy the benefits of share ownership, including the receipt of
dividends, even though the shares remain vested in a subsidiary. Upon expiration of the rights of usufruct,
provided that the total profits of the aforementioned company shall not have been declared as dividends, GSAS
shall be entitled to receive 10 percent, of all withheld profits accumulated as reserves on the balance sheet of
Dufry Shop Finance Limited Srl as at December 31, 2020. In 2007, the amount of usufruct paid amounted to
CHF 0.5 million (2006: CHF 0.2 million). During the six month period ended June 30, 2008, and June 30, 2007
no amounts have been paid.
In addition to his employment relationship with the Group, Mr. José González, Chief Operating Officer for
region North America & Caribbean and member of the Group Executive Committee, owns 26.3 percent of the
share capital of the subsidiary Puerto Libre International SA (“PLISA”). PLISA operates duty-free shops at the
international airport of Managua as well as three border shops in Nicaragua.
Pevazi Inc. supplied goods equivalent to the amount of CHF 0.2 million (2006: CHF 0.2 million). Pevazi
Inc. is related to a member of the Board of Directors of Dufry Ltd.
Except for Mr. Xavier Bouton who received CHF 250,000 (2006: CHF 250,000) for strategic consulting
services provided to the Company during the year 2007, there are no additional fees or remunerations billed to
Dufry Ltd or one of its subsidiaries by members of the Board of Directors, the Group Executive Committee or
parties closely linked to such persons as defined in the CGD.
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THE COMPA�Y
Incorporation, corporate name, registration and registered office
The Company is formed as a stock corporation (Aktiengesellschaft), organized with limited liability under
the laws of Switzerland. The incorporators were Stephan Werthmüller, Carl Eicher and Juan Carlos Torres
Carretero, at that time members of the Board of Directors of the Company. The Company was established on
November 3, 2003 and registered on November 4, 2003, in the commercial register of the Canton of Basel-
Stadt, Switzerland under the name Sintres Holding AG, and has changed its name to Dufry AG on November
17, 2005. It has its registered office and principal business office at Hardstrasse 95, 4052 Basel, Switzerland and
is registered in the commercial register under the number CH-270.3.013.316-3.
Purpose of the Company, duration and business year
The business purpose of the Company, according to article 2 of its Articles (Statuten), is to acquire, to hold,
to administer continuously, to sell and to finance participations in companies of all kinds in Switzerland and
abroad. The Company may open branch offices, subsidiaries and agencies in Switzerland and abroad. It may
also acquire, hold and sell real estate. It may grant guarantees or other securities in relation to liabilities of
affiliated companies. In addition, the Company may engage in any other commercial, financial and other activities
which are linked directly or indirectly to the purpose of the Company.
The Company has been established for an unlimited duration (article 1 of the Articles) and its financial year
corresponds to the calendar year.
�otices of the Company
According to article 22 of its Articles, the Company’s official publications are made in the Swiss Official
Gazette of Commerce (“Schweizerisches Handelsamtsblatt”). Notices of the Company to the shareholders are
made by the same means as for official publications of the Company or by ordinary mail to the shareholders
registered in the Company’s share register (Aktienbuch).
Notices required under the Listing Rules will be published in two Swiss newspapers with national
circulation, one such newspaper being in German and the other in French.
Dufry Group Structure
A list of significant subsidiaries of the Company (as at December 31, 2007) appears on page F-59 seq. of
this Listing Prospectus. One of these subsidiaries, DSA, in which Dufry holds 51 percent, is listed on the
Luxembourg Stock Exchange and issued Brazilian Depositary Receipts listed on the BOVESPA.
Dufry has no unconsolidated holdings which would account for more than 10 percent of the equity capital
of the Dufry Group or for more than 10 percent of its consolidated net earnings.
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SHARE CAPITAL A�D SHARES
This summary contains certain information in relation to the share capital and the Shares of the Company
as well as a brief description of certain significant provisions of the Company’s Articles and the Swiss Code of
Obligations (Schweizerisches Obligationenrecht). This description does not purport to be complete and is
qualified in its entirety by reference to the Company’s Articles and the laws of Switzerland in effect on the date
of this Listing Prospectus.
Capital Structure
Overview
As of the date of this Listing Prospectus the Company has a share capital of CHF 96,069,770, comprised of
19,213,954 fully paid-in registered shares with a nominal value of CHF 5 each. All of the issued shares are
registered shares. According to article 3 bis of the Articles, the Company’s conditional capital amounts to
maximally CHF 7,500,000. On December 9, 2008, the MCN issued in connection with the acquisition of
Hudson were converted in 932,704 Shares and therefore, the conditional capital stated in the Articles is
effectively reduced by such corresponding amount.
Ordinary share capital
From November 3, 2003 to February 19, 2004, the nominal share capital of the Company was CHF
100,000, divided into 10,000 fully paid in registered shares with a nominal value of CHF 10 each. From
February 19, 2004 to July 25, 2005, the nominal share capital of the Company was CHF 45 million, divided into
4.5 million fully paid in registered shares with a nominal value of CHF 10 each. From July 25, 2005 to
November 17, 2005, the nominal share capital of the Company was CHF 60 million, divided into 6 million fully
paid in registered shares with a nominal value of CHF 10 each. At an extraordinary shareholders’ meeting on
November 17, 2005, the existing shares were split with a split ratio of 1:2 and the new nominal value was set at
CHF 5 per registered share. From November 17, 2005 to December 5, 2005, the nominal share capital of the
Company was CHF 60 million, divided into 12 million fully paid in registered shares with a nominal value of
CHF 5 each. In the context of the Initial Public Offering (IPO) on December 5, 2005, the nominal share capital
of the Company was increased by 2,064,300 shares to CHF 70,312,500. From December 5, 2005 to October 13,
2008, the nominal share capital of the Company was CHF 70,312,500, divided into 14,062,500 fully paid in
registered shares with a nominal value of CHF 5 each. On October 13, 2008, the Board of Directors increased
the nominal share capital of the Company by 4,218,750 shares to CHF 91,406,250, using the authorized share
capital. From October 13, 2008 to December 9, 2008, the nominal share capital of the Company was CHF
91,406,250, divided into 18,281,250 fully paid in registered shares with a nominal value of CHF 5 each. On
December 9, 2008, the nominal share capital of the Company was increased by 932,704 shares to CHF
96,069,770 due to the conversion of the MCN. From December 9, 2008 to today, the nominal share capital of
the Company is CHF 96,069,770, divided into 19,213,954 fully paid in registered shares with a nominal value of
CHF 5 each.
Conditional share capital
At the extraordinary shareholders’ meeting of November 17, 2005, it was resolved to create a conditional
capital in the maximum amount of CHF 7.5 million. The respective article 3 bis of the Articles reads as follows
(translation from the German original):
The share capital may be increased in an amount not to exceed CHF 7,500,000 by the issuance of up to
1,500,000 fully paid registered shares with a nominal value of CHF 5 each through the exercise of conversion
and/or option rights granted in connection with the issuance of newly or already issued convertible debentures,
debentures with option rights or other financial market instruments by the Company or one of its Dufry Group
companies. The preferential subscription rights of the shareholders shall be excluded in connection with the
issuance of convertible debentures, debentures with option rights of other financial market instruments. The then
current owners of conversion and/or option rights shall be entitled to subscribe for the new shares. The
acquisition of shares through the exercise of conversion and/or option rights and each subsequent transfer of the
shares shall be subject to the restrictions set forth in Article 5 of these Articles. The Board of Directors may
limit or withdraw the right of the shareholders to subscribe in priority to an issue of convertible debentures,
debentures with option rights or similar financial market instruments when they are issued, if: (a) an issue by
firm underwriting by a consortium of banks with a subsequent listing to the public without preferential
subscription rights seems to be the most appropriate form of issue at the time, particularly in terms of the
84

conditions or the time plan of the issue; or (b) the financial market instruments with conversion or option rights
are issued in connection with the financing or refinancing of the acquisition of an enterprise or parts of an
enterprise or with participations or new investments of the Company. If advance subscription rights are denied
by the Board of Directors, the following shall apply: (x) conversion rights may be exercised only for up to 15
years; and option rights only for up to 7 years from the date of the respective issuance; and (y) the respective
financial instruments must be issued at the relevant market conditions.
On December 9, 2008, the MCN issued in connection with the acquisition of Hudson were converted in
932,704 Shares and therefore, the conditional capital state in the Articles is effectively reduced by such
corresponding amount.
Authorized share capital
On May 8, 2008, the shareholders’ meeting resolved to create authorized capital in the amount of CHF
21,093,750, comprised of 4,218,750 shares with a nominal value of CHF 5 each. On October 13, 2008, the
Board of Directors increased the capital pursuant to article 3 ter of the Articles by CHF 21,093,750. The preemptive
rights of the existing shareholders were excluded in appliance of article 3 ter para. 4 lit. a of the Articles
and the New Shares were being fully allocated to the New Shareholders as part of the consideration for the
Acquisition. On October 13, 2008, the capital increase was registered with the commercial register of Basel-
Stadt. As of the date of this Listing Prospectus, Dufry has no longer any authorized share capital. Article 3 ter of
the Articles has been abrogated. See also “The Acquisition of Hudson Group Holdings, Inc.”
Participation certificates and profit sharing certificates
The Company has not issued any non-voting equity security, such as participation certificates
(Partizipationsscheine) or profit sharing certificates (Genussscheine).
Convertible bonds and options
In connection with the acquisition of Hudson, the Board of Directors resolved to issue a zero-coupon MCN,
to be used as part of the consideration for the acquisition of Hudson. Up to 940,000 shares from the conditional
capital were reserved for the MCN. The MCN converted on December 9, 2008 into 932,704 registered shares of
Dufry. The exchange ratio, at which the shares of Dufry and the MCN have been issued, has been determined
based on the 3-month weighted average price of the shares of Dufry of CHF 85 per share and values 100 percent
of Hudson’s equity. As of the date of this Listing Prospectus, Dufry has no longer any MCN outstanding.
Description of the Shares
The Shares
The Shares are registered with a nominal value of CHF 5 each. The Shares are held in collective custody
with SIS in book-entry form only. Shareholders do not have the right to ask for printing and delivery of share
certificates (�amenaktien mit aufgehobenem Titeldruck).
Each Share carries one vote at the shareholders’ meetings. Voting rights may be exercised only after a
shareholder has been registered in the Company’s share register (Aktienbuch) as a shareholder with voting
rights. In specific cases, such registration needs the approval of the Board of Directors (see “Approval of the
Board of Directors and Nominees”).
Ordinary capital increase, conditional and authorized share capital
Under Swiss law, the share capital (Aktienkapital) of a company may be increased in consideration of
contributions in cash by a resolution passed at a shareholders’ meeting by a simple majority of the votes cast.
An increase in share capital in consideration of contributions in kind, involving the exclusion of the pre-emption
rights of the shareholders, or the transformation of reserves into share capital, requires a resolution passed by a
majority of two-thirds of the shares represented (in person or by proxy) at a shareholders’ meeting and the
absolute majority of the nominal amount of the shares represented (in person or by proxy) at the passing of the
resolution. Further, under the Swiss Code of Obligations, the shareholders of a company may empower its board
of directors, by passing a resolution in the manner described in the preceding sentence, to issue shares in a
specific aggregate nominal amount up to 50 percent of the share capital in the form of:
85

a) conditional capital (bedingtes Kapital) for the purpose of issuing shares, inter alia, (i) to grant
conversion rights or warrants to holders of convertible bonds or (ii) to grant rights to employees of a company or
affiliated companies to subscribe for new shares; or
b) authorized capital (genehmigtes Kapital) to be utilized by the Board of Directors within a period not
exceeding two years from approval by the shareholders’ meeting.
Shareholders’ meetings
Under Swiss law, a general shareholders’ meeting must be held within six months after the end of a
company’s preceding financial year. In the case of the Company, this means on or before June 30.
In shareholders’ meetings, except as noted below, each shareholder has equal rights, including equal voting
rights. According to the Company’s Articles, each Share is entitled to one vote.
Shareholders’ meetings may be convened by the board of directors or, if necessary, by a company’s
independent auditors. The board of directors is further required to convene an extraordinary shareholders’
meeting if so resolved by a shareholders’ meeting or if so requested by holders of shares holding in aggregate at
least 10 percent of the nominal share capital of a company. Shareholders holding shares with a nominal value of
CHF 1 million have the right to request that a specific proposal be discussed and voted upon at the next
shareholders’ meeting. With respect to the Company, according to the Articles, such requests must be made in
writing to the Company no later than 45 days prior to the shareholders’ meeting. A shareholders’ meeting is
convened at least 20 days prior to such meeting by publishing a notice of such meeting in the Swiss Official
Gazette of Commerce (Schweizerisches Handelsamtsblatt) or by letter sent to the shareholders registered in the
company’s share register.
There is no provision in the Articles requiring a presence quorum for shareholders’ meetings of the
Company.
In Switzerland, shareholders’ resolutions generally require the approval of an absolute majority of the
shares represented at a shareholders’ meeting. A resolution passed at a shareholders’ meeting with a
supermajority of at least two-thirds of the votes represented and the absolute majority of the nominal share
capital represented at such meeting is required for: (i) modifications in a company’s purpose; (ii) the creation of
shares with increased voting power; (iii) restrictions on the transferability of registered shares; (iv) an authorized
or conditional increase in a company’s share capital; (v) an increase in a company’s share capital by way of
capitalization of reserves, against contribution in kind, for the acquisition of assets or involving the grant of
special privileges; (vi) the restriction or elimination of pre-emptive rights of shareholders (vii) a change of the
place of incorporation or (viii) the dissolution of the company. Special quorum rules apply by law to a merger
(Fusion), demerger (Spaltung) or conversion (Umwandlung) of a company.
In addition to the qualified quorum set forth above, article 12 of the Articles provides that a resolution
regarding the dismissal of a member of the Board of Directors and regarding an increase in the maximum
number of members of the Board of Directors also require the approval of two-thirds of the votes represented
and the absolute majority of the nominal share capital represented at the shareholders’ meeting. The introduction
or abolition of any provision in the Articles providing for a greater voting requirement than is prescribed by law
or the existing Articles must be adopted by the same supermajority.
A shareholders’ meeting also has the power to vote by absolute majority on amendments to the articles of
incorporation, to elect the members of the board of directors and the independent auditors, to approve the annual
report and the annual Dufry Group accounts, to set the annual dividend and to discharge the directors from
liability for matters disclosed to the shareholders’ meeting. A shareholders’ meeting, by an absolute majority,
also has the power to order an independent investigation into specific matters proposed to the shareholders’
meeting (Sonderprüfung).
Shareholders of the Company can be represented by proxy at shareholders’ meetings by any person who is
so authorized, a representative by law, a company representative (Organvertreter), a specially designated
independent shareholder representative (unabhängiger Stimmrechtsvertreter) or a depositary representative
(Depotvertreter). The Board of Directors is entitled to approve agreements with banks and professional asset
managers to allow them to exercise the voting rights of shares deposited with them on behalf of the beneficial
owners of the shares. At shareholders’ meetings, votes are taken on a show of hands unless a vote by ballot or
86

electronic voting is ordered by the Chairman of the meeting. In case of a tie, the acting chairman has the casting
vote.
Transfer of Shares
The Shares are registered shares, the transfer of which (for as long as they are book-entry shares) is effected
by use of a share registration form and by a corresponding entry in the books of a bank or a depositary
institution following an assignment in writing by the selling shareholder and notification to the Company of
such assignment.
Approval of the Board of Directors and �ominees
There are no transfer restrictions (Vinkulierung) with regard to the Shares. Only persons registered as
shareholders or beneficial owners of registered shares in the share register shall be recognized as such by the
Company. Acquirers of registered shares shall be registered as shareholders with the right to vote; provided that
they expressly declare that they acquired the registered shares in their own name and for their own account.
Failing such registration, a shareholder may not vote at or participate in a shareholders’ meeting but still be
entitled to receive dividends and other rights with financial value such as pre-emption rights. The Articles
provide that a person or legal entity not explicitly stating to act for its own account and with which the Company
has entered into a respective agreement (“Nominee”) may be entered as a shareholder in the share register with
voting rights for Shares up to a maximum of 0.2 percent of the registered share capital as set forth in the
commercial register. The Board of Directors may allow a Nominee to exceed this limit if such Nominee
discloses name, address and shareholding of any person or legal entity for whose account it is holding more than
0.2 percent of the registered share capital as set forth in the commercial register.
For the purpose of the limits set out above corporate bodies and partnerships or other Dufry Groups of
persons or joint owners who are interrelated to one another through capital ownership, voting rights, uniform
management or otherwise linked as well as individuals or corporate bodies and partnerships who act in concert
to circumvent the regulations concerning the Nominees (especially as syndicates), shall be treated as one single
Nominee.
The board of directors shall specify the details and give the necessary orders concerning the adherence to
the preceding regulations. In particular cases it may allow exemptions from the regulation concerning
Nominees.
Allocation of annual net profits
Swiss law generally requires that at least 5 percent of the annual net profits of a holding company must be
retained by the Company as general reserves for so long as such reserves amount to less than 20 percent of the
Company’s nominal share capital. Any net profits remaining are at the disposal of the shareholders’ meeting.
The allocation of the net profits of a company is approved at the shareholders’ meeting. Under Swiss law,
dividends are paid out only after approval by the shareholders’ meeting and are based on audited financial
statements. In accordance with Swiss practice, it is expected that a dividend will be proposed to the
shareholders’ meeting once each year. See “Dividends and Dividend Policy.”
Dividends are usually due and payable not earlier than three days after the shareholders’ resolution relating
to the allocation of profits has been passed. The statute of limitations in respect of dividend payments is five
years. For information about deduction of withholding taxes, see “Taxation – Swiss Tax Considerations.”
Pre-emptive rights
Under Swiss law, any share issue, whether for cash or non-cash consideration, is subject to the prior
approval of the shareholders at a shareholders’ meeting. Shareholders have certain pre-emptive rights
(Bezugsrechte) to subscribe for new issues of shares, option bonds, convertible bonds, or similar debt
instruments with option rights in proportion to the nominal amount of shares held. A resolution adopted at a
shareholders’ meeting by a supermajority of at least two-thirds of the shares and the absolute majority of the
nominal share capital represented at such meeting may limit or suspend pre-emptive rights in certain limited
circumstances.
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Borrowing powers
Neither Swiss law nor the Articles restrict in any way the Company’s power to borrow and raise funds. The
decision to borrow funds is made by or under direction of the Company’s Board of Directors, no shareholders’
resolution being required.
Conflicts of interest, management transactions
Swiss law does not have a general provision on conflicts of interest. However, the Swiss Code of
Obligations contains a provision which requires directors and senior management to safeguard the interests of a
company and, in this connection, imposes a duty of loyalty and duty of care on its directors and officers. The
directors and officers are personally liable to a company for breach of these provisions. Dufry and its Directors
and members of Executive Management are not, as a rule, barred from dealing with related parties. Swiss
company law does not restrict a company from entering into such transactions, nor does it require special
disclosure or shareholder approval with respect to such transactions. As long as related party transactions are
effected at arm’s length, there exists no reason to challenge their validity, to subject such transactions to a higher
scrutiny, or to require shareholder approval. If, however, the related party is a Director of the company, such Director
must abstain from deliberating and voting on the transaction in question. In addition, Swiss law contains a
provision under which payments made to a shareholder or a director or any person associated with them other
than at arm’s length must be repaid to a company if such shareholder or director was acting in bad faith. Finally,
if the company is represented in a transaction by the Director or member of Executive Management with whom
such transaction is entered into, such agreement must be made in writing. This requirement is not applicable to
transactions of ordinary business in which the performance of the company does not exceed CHF 1,000.
The corporate governance directive of the SIX Swiss Exchange also addresses conflict of interest issues.
See “Directors and Managers—Corporate Governance.”
The Directive on the Disclosure of Management Transactions of January 7, 2005, of the SIX Swiss
Exchange (the “Management Transactions Directive”) entered into force on July 1, 2005, and applies to all
issuers whose equity securities are listed on the SIX Swiss Exchange and whose registered office is in
Switzerland. Under this Management Transaction Directive, issuers are obliged to report transactions conducted
by members of their board of directors and senior management in a company’s own equity securities,
conversion and share acquisition rights, as well as in financial instruments the price of which is influenced
primarily by a company’s own equity securities. The new rules distinguish between the disclosure by the
members of the board of directors and senior management to the issuer and the subsequent notification by the
issuer to the SIX Swiss Exchange. To the extent the transactions concluded by an individual during a given
calendar month collectively exceed CHF 100,000, the issuer has an obligation to notify this to the SIX Swiss
Exchange within two trading days. If all transactions concluded by an individual during a given calendar month
do not collectively exceed CHF 100,000, the issuer must fulfill its obligation to notify by means of an overall
notification sorted by transaction per individual and submitted to the SIX Swiss Exchange no later than four
trading days following the end of the given calendar month. Management transactions which, in total, do not
exceed the threshold of CHF 100,000 per person are not published by the SIX Swiss Exchange. If the threshold
of CHF 100,000 per person is exceeded during a calendar month, the SIX Swiss Exchange publishes the
person’s function (executive or non-executive member of the board of directors or member of senior
management), but not his or her name. The publication is made on the SIX Swiss Exchange website on the same
trading day as notification is received from an issuer and is accessible by a remote access mechanism for a
period of one year.
Repurchase of Shares
Swiss law limits the right of the Company to purchase and hold its own Shares. The Company and its
subsidiaries may purchase Shares only if and to the extent that (i) the Company has freely distributable reserves
in the amount of the purchase price; and (ii) the aggregate nominal value of all shares held by the Company does
not exceed 10 percent of the Company’s share capital (20 percent in specific circumstances).
Shares held by the Company or its subsidiaries are not entitled to vote at shareholder’s meetings, but are
entitled to the economic benefits, including dividends, applicable to the Shares generally. Furthermore, under
Swiss law, upon the purchase of Shares, the Company must create a special reserve on its balance sheet in the
amount of the purchase price of the acquired shares. In addition, selective Share repurchases are only permitted
under certain circumstances; in particular, repurchases of listed Shares are subject to certain restrictions
88

promulgated by the Swiss Takeover Board (the regulatory board for takeover bids in Switzerland). Within these
limitations, as is customary for Swiss companies, the Company may purchase and sell its own Shares from time
to time in order to meet imbalances of supply and demand, to provide liquidity, and to even out swings in the
Shares’ market price.
Duration and liquidation
The Articles do not limit the Company’s duration. Under Swiss law, the Company may be dissolved at any
time by a resolution of a shareholders’ meeting which must be passed by a supermajority. Any surplus arising
out of liquidation (after the satisfaction of all creditors) must be used first to repay the nominal share capital of
the Company. Thereafter, any balance must be distributed to shareholders in proportion to the paid-up nominal
value of shares held.
�otification and Disclosure of major shareholders
Dufry and persons who acquire or dispose Shares or rights based or derived therefrom are subject to the
notification and disclosure requirements of the Swiss Federal Stock Exchange Act, that requires persons who,
directly, indirectly or in concert with third parties, acquire or dispose of shares, or acquire or sale rights with
respect to shares, in a company incorporated in Switzerland whose equity securities are listed in whole or in part
in Switzerland and thereby reach, exceed or fall below the thresholds of 3 percent, 5 percent, 10 percent, 15
percent, 20 percent , 25 percent, 33 1/3 percent, 50 percent, or 66 2/3 percent, of the voting rights in such
company notify the company and the SIX Swiss Exchange of such acquisition or disposal in writing within four
trading days, whether or not the voting rights can be exercised. In addition, transactions with financial
instrument that make it economically possible to acquire equity in a company with regard to a tender offer are
deemed an indirect acquisition of shares. The exercise of conversion or acquisition rights and the exercise of
sale rights are deemed to be acquisitions and sales, respectively, of shares. Following receipt of such
notification, the company must inform the public within two trading days.
An additional disclosure obligation exists for listed companies under Swiss company law pursuant to which
the company must disclose the identity and size of shareholdings of all of its shareholders and shareholder
groups acting in concert who hold more than 5 percent of the voting rights. This disclosure must be made once a
year in the notes to the financial statements as published in the Company’s annual report.
Mandatory bid rules
Pursuant to the applicable provisions of the Swiss Federal Stock Exchange Act, if a person acquires shares
of a Swiss listed company, whether directly or indirectly or acting in concert with third parties, which, when
added to the shares already held by such person, exceed the threshold of 33 1/3 percent of the voting rights
(whether exercisable or not) of such company, that person must make a bid to acquire all of the listed shares of
such company. A company’s articles of incorporation may either eliminate this provision of the Swiss Federal
Stock Exchange Act or may raise the relevant threshold to 49 percent (“opting-out” or “opting-up”
respectively). The Articles do not contain an opting-out or an opting-up provision.
There is no obligation to make a bid under the foregoing rules if the voting rights in question are acquired
as a result of a gift, succession or partition of an estate, a transfer based upon matrimonial property law, or
execution proceedings.
Cancellation of remaining equity securities, squeeze-out merger
Under the Swiss Federal Stock Exchange Act, any offeror who has made a tender offer for the shares of a
listed Swiss target company, and who, as a result of such offer, holds more than 98 percent of the voting rights
of the target company, may petition the court to cancel the remaining equity securities. The petition must be
filed against the target company within three months after the expiration of the offer period. The remaining
shareholders may join in the proceedings. If the court orders cancellation of the remaining equity securities, the
target company will reissue the equity securities and deliver such securities to the offeror against performance of
this offer for the benefit of the holders of the cancelled equity securities.
Under the Swiss Federal Merger Act, shareholders of the transferring company may be offered a settlement
instead of shares in the surviving company if at least 90 percent of the shareholders of the transferring company
who are entitled to vote give their consent.
89

Development of the share price
The following table set forth the reported high, low, average and closing prices for one Existing Share on
the SIX Swiss Exchange for the years 2005, 2006, 2007 and 2008:
�ame 2005 2006 2007 2008 (4)
(CHF)
Dufry AG
High (1) ................................................................ 83.70 114.00 147.00 127.80
Low (1) ................................................................ 75.10 76.00 99.00 21.30
Average (2) ................................................................78.95 93.84 122.25 78.60
Close (3) ................................................................ 83.00 102.00 126.00 25.60
(1)
Includes intra-day prices.
(2)
Average of daily closing prices.
(3)
Closing price at last trading day of the respective calendar year.
(4)
Until December 9, 2008.
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Swiss Tax Considerations
TAXATIO�
The following summary does not purport to address all tax consequences of the acquisition, ownership and
disposition of the Company’s Shares and does not take into account the specific circumstances of any particular
shareholder. This summary is based on the tax laws, regulations and regulatory practices of Switzerland as in
effect on the date hereof, which are subject to change (or subject to changes in interpretation), possibly with
retroactive effect. Shareholders and potential investors are advised to consult their own tax advisors in light of
their particular circumstances as to the Swiss tax laws, tax regulations and regulatory practices of the tax
administrations that could be relevant for them in connection with the acquisition, ownership and disposition of
the Shares.
Swiss Federal Withholding Tax
Dividends paid and similar cash or in-kind distributions that the Company makes to holders of Shares
(including liquidation proceeds exceeding the nominal value of the Shares and stock dividends) are subject to a
Swiss federal withholding tax at a rate of 35 percent. The Company is required to withhold the Swiss federal
withholding tax from the gross distribution and pay it to the Swiss federal tax administration. The Swiss federal
withholding tax is usually either fully reduced at source or refundable in full to a Swiss resident, as defined in
the Swiss federal withholding tax act, who receives a distribution if such Swiss resident is the beneficial owner
of the distribution at the time of the distribution and duly reports the gross distribution received in his individual
income tax return or, as the case may be, recognises the distribution for tax purposes as earnings in his income
statements.
A Shareholder who is not a Swiss resident for tax purposes and does not hold the Shares in connection with
a trade or business in Switzerland through a permanent establishment or a fixed place of business and that
receives a distribution from the Company with respect to the Shares may be entitled to a full or partial refund of
the Swiss withholding tax if the country in which he resides has entered into a bilateral treaty for the avoidance
of double taxation with Switzerland and the prerequisites of the treaty have been met. The Swiss-United States
tax treaty generally reduces the non-refundable portion of the withholding tax to 15 percent. Shareholders not
resident in Switzerland should be aware that the procedures for claiming treaty benefits (and the time required
for obtaining a refund) may differ from country to country. Shareholders not resident in Switzerland should
consult their own legal, financial or tax advisors regarding the procedures for claiming a refund of the
withholding tax.
US Holders
A US Holder who is an individual or a legal entity not resident in Switzerland for tax purposes may be
entitled to a partial refund of the withholding tax incurred on a taxable distribution from the Company if the
conditions of the bilateral tax treaty between the United States and Switzerland are met. A US Holder who is a
resident of the United States for purposes of the bilateral tax treaty between the United States and Switzerland is
eligible for a reduced rate of withholding tax on dividends equal to 15 percent of the dividend, provided that
such holder (i) is the beneficial owner of the Shares at the time the dividend is due, and (ii) is entitled to benefits
under this treaty, and (iii) holds, directly or indirectly, less than 10 percent of our voting stock, and (iv) does not
conduct business through a permanent establishment or fixed base in Switzerland to which the Shares are
attributable. Such an eligible US Holder may apply for a refund of the amount of the withholding tax in excess
of the 15 percent treaty rate. The application for refund must be filed on Swiss Tax Form 82 (82C for
corporations; 82I for individuals; 82E for other entities; 82R for regulated investment companies), which may
be obtained from any Swiss consulate general in the United States or from the Swiss Federal Tax Administration
at the address below, together with an instruction form. Four copies of the form must be duly completed, signed
before a notary public of the United States, and sent to the Swiss Federal Tax Administration, Eigerstrasse 65,
CH 3003, Berne, Switzerland. The form must be accompanied by suitable evidence of deduction of Swiss tax
withheld at source, such as certificates of deduction, signed bank vouchers or credit slips. The form must be
filed no later than December 31 of the third year following the calendar year in which the dividend became due.
Swiss Federal, Cantonal and Communal Income and Wealth Taxation
Individuals resident in Switzerland and holding Shares in their private property are required to include
dividend payments (including any payments upon redemption or liquidation in excess of the nominal amount of
Shares) in their personal income tax return and will be subject to Swiss federal, cantonal and communal income
91

tax thereon. A capital gain resulting from the disposition of Shares by such persons is not subject to Swiss
federal, cantonal and communal income tax and a capital loss is not tax-deductible. Swiss resident individuals
who hold Shares are required to report their Shares as part of their taxable wealth and will be subject to cantonal
and communal wealth tax, provided that their net taxable wealth exceeds applicable allowances.
Swiss-resident corporate and individual taxpayers as well as corporate and individual taxpayers resident
abroad who hold Shares as part of Swiss business assets and who receive dividend distributions on Shares are
required to recognize such distributions and any capital gains realized on Shares sold in their income statement
for the respective tax period and are subject to Swiss federal, cantonal and communal individual or corporate
income tax, as the case may be, on any net taxable earnings (including the payments of dividends on the Shares
and a capital gain realized on the sale of Shares) for such period; capital losses are tax deductible. The same tax
treatment applies to Swiss-resident individuals who, for income tax purposes, are classified as “professional
securities dealers” for reasons of, inter alia, frequent dealing and debt-financing purchase. Corporate taxpayers
may qualify for dividend relief (Beteiligungsabzug) if the Shares they hold have an aggregated market value of
at least CHF 2 million.
Under current Swiss law, a person not resident in Switzerland who, during the current taxation year, has not
engaged in a trade or business through a permanent establishment within Switzerland and who is not subject to
taxation in Switzerland for any other reason, will not be subject to Swiss federal, cantonal and communal
income tax on dividend payments and similar cash or in-kind distributions on Shares or gains realized on the
disposition of Shares. Such a person will also not be subject to any Swiss cantonal or communal wealth or
capital taxes on holding Shares.
US Federal Income Tax Considerations
This disclosure is limited to the US federal tax issues addressed herein. Additional issues may exist
that are not addressed in this disclosure and that could affect the US federal tax treatment of the �ew
Shares. This tax disclosure cannot be used by any holder for the purpose of avoiding penalties that may
be asserted against the holder under the Internal Revenue Code. Holders should seek their own advice
based on their particular circumstances from an independent tax advisor.
The following is a discussion of certain US federal income tax consequences of purchasing, owning and
disposing of New Shares by US Holders (as described below), but it does not purport to be a comprehensive
description of all the tax considerations that may be relevant to a particular person’s decision to acquire such
securities. This discussion does not address US state, local and non-US tax consequences. The discussion
applies only to US Holders who hold New Shares as capital assets for US federal income tax purposes and it
does not address special classes of holders, such as:
certain financial institutions;
insurance companies;
dealers and certain traders in securities or foreign currencies;
persons holding New Shares as part of a hedge, straddle, conversion or other integrated transaction;
persons whose functional currency for US federal income tax purposes is not the US dollar;
partnerships or other entities classified as partnerships for US federal income tax purposes;
persons liable for the alternative minimum tax;
tax-exempt organizations; or
persons holding New Shares that own or are deemed to own 10 percent or more of the Company’s
voting stock.
This discussion is based on the Internal Revenue Code of 1986, as amended, administrative
pronouncements, judicial decisions and final, temporary and proposed US Treasury regulations, as well as the
income tax treaty between Switzerland and the United States (the “Treaty”), all as of the date hereof. These laws
are subject to change, possibly on a retroactive basis. Prospective investors should consult their own tax
advisors concerning the US federal, state, local and non-US tax consequences of purchasing, owning and
92

disposing of New Shares in their particular circumstances, including their eligibility for the benefits under the
Treaty.
As used herein, a “US Holder” is a beneficial owner of an Offered Share that is, for US federal income tax
purposes: (i) a citizen or resident of the United States; (ii) a corporation, or other entity taxable as a corporation,
created or organized in or under the laws of the United States or any political subdivision thereof; or (iii) an
estate or trust the income of which is subject to US federal income taxation regardless of its source.
This discussion assumes that the Company is not, and will not become, a passive foreign investment
company, as described below.
Taxation of distributions
Distributions received by a US Holder on New Shares, including the amount of any Swiss taxes withheld,
other than certain pro rata distributions of ordinary shares to all shareholders, will constitute foreign-source
dividend income to the extent paid out of the Company’s current or accumulated earnings and profits (as
determined for US federal income tax purposes). The amount of the dividend a US Holder will be required to
include in income will equal the US dollar value of the CHF, calculated by reference to the exchange rate in
effect on the date the payment is received by the holder, regardless of whether the payment is converted into US
dollars on the date of receipt. If a US Holder realizes gain or loss on a sale or other disposition of CHF, it will be
US-source ordinary income or loss. Corporate US Holders will not be entitled to claim the dividends-received
deduction with respect to dividends paid by the Company. Subject to applicable limitations, dividends received
by certain non-corporate US Holders in taxable years beginning before January 1, 2009 will be taxable at a
maximum rate of 15 percent. Non-corporate US Holders should consult their own tax advisors to determine
whether they are subject to any special rules that limit their ability to be taxed at this favorable rate.
Swiss taxes withheld from dividends on New Shares at a rate not exceeding the rate provided in the Treaty
will be creditable against a US Holder’s US federal income tax liability, subject to applicable restrictions and
limitations that may vary depending upon the holder’s circumstances. Instead of claiming a credit, a US Holder
may elect to deduct such Swiss taxes in computing its taxable income, subject to generally applicable
limitations. The limitation of foreign taxes eligible for credit is calculated separately with respect to specific
classes of income. The rules governing foreign tax credits are complex. Therefore, US Holders should consult
their own tax advisors regarding the availability of foreign tax credits in their particular circumstances.
Sale and other disposition of �ew Shares
A US Holder will generally recognize capital gain or loss on the sale or other disposition of New Shares,
which will be long-term capital gain or loss if the holder has held such New Shares for more than one year. The
amount of the US Holder’s gain or loss will be equal to the difference between the amount realized on the sale
or other disposition and such holder’s tax basis in the New Shares, as determined in US dollars. Any gain or loss
will generally be US-source gain or loss for foreign tax credit purposes.
Passive foreign investment company considerations
The Company believes that it should not be considered a passive foreign investment company (“PFIC”) for
US federal income tax purposes for its 2007 taxable year or for the foreseeable future. However, since PFIC
status depends upon the composition of the Company’s (including subsidiaries directly or indirectly owned 25
percent or more by value) income and assets and the market value of its assets from time to time, there can be no
assurance that the Company will not be considered a PFIC for any taxable year. If the Company were treated as
a PFIC for any taxable year during which a US Holder directly or indirectly held an Offered Share, certain
adverse US federal income tax consequences could apply to such holder. These consequences may include
having gains realized on the disposition of New Shares and certain dividends treated as ordinary income earned
pro rata over the US Holder’s holding period for the New Shares, taxed at maximum rates applicable during the
years in which such income is treated as earned and subjected to punitive interest charges for a deemed deferral
benefit. Furthermore, if the Company were to be treated as a PFIC in a taxable year in which it paid a dividend
or the prior taxable year, the preferential rate discussed above with respect to dividends paid to certain noncorporate
US Holders would not apply.
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Information reporting and backup withholding
Payment of dividends and sales proceeds that are made within the United States or through certain USrelated
financial intermediaries generally are subject to information reporting and to backup withholding unless
the US Holder is a corporation or other exempt recipient or, in the case of backup withholding, the US Holder
provides a correct taxpayer identification number and certifies that no loss of exemption from backup
withholding has occurred. The amount of any backup withholding from a payment to a US Holder will be
allowed as a credit against the holder’s US federal income tax liability and may entitle such holder to a refund,
provided that the required information is furnished to the Internal Revenue Service.
94

LISTI�G
Own Existing Shares and Rights Associated with such Existing Shares
Listing
As of the date of this Listing Prospectus the Company owns 106,750 Shares in the Company.
On August 28, 2008 the Board of Directors of Dufry resolved to list the New Shares. Application has been
made to list the New Shares issued from the authorized capital on November 14, 2008. The SIX Swiss
Exchange Admission Board had granted a deferred listing for these New Shares on July 8, 2008. According to
that decision, the New Shares need to be listed until December 31, 2008, at the latest. On December 1, 2008, the
SIX Swiss Exchange Admission Board granted the listing of the New Shares. The New Shares will be listed and
trading of the New Shares will commence on December 19, 2008.
Form of the Shares
In accordance with the Articles the Shares are not issued in certificated form but have been delivered in
book-entry form only (aufgehobener Titeldruck), into collective custody at SIS. Shareholders do not have the
right to ask for printing or delivery of share certificates.
Voting Rights
Each Share carries one vote. Regarding transfers of Shares and restrictions see “Share Capital and Shares—
Transfer of Shares” and “Transfer Restrictions.”
Amendments or Changes
Any notices containing or announcing amendments or changes to this Listing Prospectus will be announced
through the electronic media and, if required, published in German and French in the �eue Zürcher Zeitung and
in Le Temps, respectively.
Dividends and Dividend Policy
The Shares carry full dividend rights from and including the fiscal year beginning on January 1, 2008 and
ending on December 31, 2008. See “Dividends and Dividend Policy.”
95

Main Board of the SIX Swiss Exchange
MARKET I�FORMATIO�
The SIX Swiss Exchange was founded in 1993 as the successor to the local stock exchanges of Zurich,
Basel and Geneva. In 1996, the SIX Swiss Exchange introduced full electronic trading in Swiss equities,
derivatives and bonds. In 2007, the aggregate turnover of the SIX Swiss Exchange for equity and debt
instruments, as well as options, was CHF 1,224 billion. A listing on the SIX Swiss Exchange – Main Board
requires that (i) the operating and financial track record of the issuer extends over a period of at least three years,
(ii) the issuer’s capital resources amount to at least CHF 25 million, (iii) the total market value of the issuer’s
initial public listing amounts to a minimum of CHF 25 million, and (iv) 25 percent of the issuer’s outstanding
share capital be placed in public hands. As of June 30, 2008, 249 issuers were listed on the SIX Swiss Exchange
– Main Board.
General Rules on Securities Trading
Trading at the SIX Swiss Exchange occurs through a fully integrated trading system covering the entire
process from trade order to settlement. Trading of equities begins each business day at 9.00 (CET) and continues
until 17.30 (CET). Banks and broker-dealers doing business in Switzerland are required to report all transactions
in listed securities traded at the SIX Swiss Exchange. Transaction information is collected, processed and
immediately distributed by the SIX Swiss Exchange. The SIX Swiss Exchange distributes a comprehensive
range of information through various publications, including, in particular, the Swiss Market Feed. The Swiss
Market Feed supplies SIX Swiss Exchange data in real time to all subscribers, as well as to other information
providers, such as Telekurs and Reuters.
Exchange transactions are usually settled on a T+3 basis, meaning that delivery against payment of
exchange transactions occurs three days after the trade date.
The SIX Swiss Exchange may suspend the trading of securities, in particular, if large price fluctuations are
observed, if important, price-sensitive information is about to be disclosed, or in other situations that might
endanger fair and orderly trading. In a predetermined number of circumstances, such as seriously questionable
solvency of the issuer or continuous lack of required liquidity for efficient exchange trading, the SIX Swiss
Exchange may cancel the listing of securities (delisting). As the organiser of the market, the SIX Swiss
Exchange is generally responsible for market surveillance and monitoring. The aim of such self-regulation is to
ensure transparency and fair trading for investors, and to guarantee market efficiency.
Clearing, Payment and Settlement
Clearing and settlement of securities listed on the SIX Swiss Exchange is made through SIS.
Market Transactions by Dufry in its own Shares
Swiss law limits a company’s ability to hold or purchase its own shares. A company may only purchase its
own shares if there are sufficient freely distributable reserves in the balance sheet of the Company (as defined
under “Share Capital and Shares—Repurchase of Shares”) to pay the purchase price and if the aggregate
nominal value of the shares purchased does not exceed 10 percent of the Company’s nominal share capital.
Furthermore, under Swiss law, the Company must create a special reserve on its balance sheet in the amount of
the purchase price of the acquired shares. Within these limitations, the Company is permitted under Swiss law to
purchase and sell its own shares on the SIX Swiss Exchange from time to time in order to meet imbalances of
lawful supply and demand, to provide liquidity, to modulate swings in the market price of the Company’s shares
or for other purposes.
Foreign Investment and Exchange Control Regulations in Switzerland
Other than in connection with government sanctions imposed on persons and organizations with
connections to Osama bin Laden, the “Al-Qaeda” Group or the Taliban, the Republic of Iraq, Yugoslavia,
Liberia, Myanmar (Burma), Sierra Leone and Zimbabwe there are currently no government laws, decrees or
regulations in Switzerland that restrict the export or import of capital, including, but not limited to, Swiss
foreign exchange controls on the payment of dividends, interest or liquidation proceeds, if any, to non-resident
holders of the Shares.
96

TRA�SFER RESTRICTIO�S
The New Shares have not been and will not be registered under the US Securities Act and may not be
offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the US Securities Act and applicable state securities laws. The Company shall
not recognize any offer, sale, pledge or other transfer of the New Shares made other than in compliance with the
below-stated restrictions.
Rule 144A
Each purchaser of New Shares offered and sold in reliance on Rule 144A will be deemed to have
acknowledged, represented and agreed with the Company that it has received such information as it deems
necessary to make an informed investment decision and as follows (terms defined in Rule 144A or Regulation S
shall have the same meaning when used in this section):
(i) The purchaser (a) is a “qualified institutional buyer” within the meaning of Rule 144A under the US
Securities Act, (b) is aware that the sale to it is being made in reliance on Rule 144A and (c) is
acquiring such New Shares for its own account or for the account of a “qualified institutional buyer,”
as the case may be;
(ii) The New Shares are being offered in a transaction not involving a public listing in the United States
within the meaning of the US Securities Act; and the New Shares have not been and will not be
registered under the US Securities Act or with any securities regulatory authority of any state or
territory of the United States and may not be reoffered, resold, pledged or otherwise transferred except
(a) to a person whom the purchaser and any person acting on the purchaser’s behalf reasonably
believes is a “qualified institutional buyer” in a transaction meeting the requirements of Rule 144A (b)
in an offshore transaction in accordance with Regulation S, or (c) pursuant to an exemption from
registration under the US Securities Act provided by Rule 144 thereunder (if available), in each case in
accordance with any applicable securities laws of any state of the United States and any other
jurisdiction;
(iii) The New Shares are “restricted securities” within the meaning of Rule 144(a)(3) under the US
Securities Act and no representation is made as to the availability of the exemption provided by Rule
144 for resales of any Shares; and
(iv) It will not deposit or cause to be deposited such New Shares into any depositary receipt facility
established or maintained by a depositary bank other than a Rule 144A restricted depositary receipt
facility, so long as such New Shares are “restricted securities” within the meaning of Rule 144(a)(3)
under the US Securities Act.
Regulation S
Each purchaser of New Shares offered in reliance on Regulation S will be deemed to have acknowledged,
represented and agreed with the Company that it has received such information as it deems necessary to make
an informed investment decision and as follows (terms defined in Rule 144A or Regulation S shall have the
same meaning when used in this section):
(i) The New Shares have not been and will not be registered under the US Securities Act or with any
securities regulatory authority of any state or territory of the United States and are subject to
significant restrictions on transfer;
(ii) The purchaser (and the person, if any, for whose account or benefit it is acquiring the New Shares) is
outside the United States and is acquiring the New Shares in an “offshore transaction” meeting the
requirements of Regulation S;
(iii) The purchaser is not an affiliate of the Company or a person acting on behalf of such affiliate; and it is
not in the business of buying and selling securities or, if it is in such business, it did not acquire the
New Shares from the Company or an affiliate thereof in the initial distribution of the New Shares;
(iv) The purchaser is aware of the restrictions on the offer and sale of the New Shares pursuant to
Regulation S described in this Listing Prospectus; and
97

(v) The New Shares have not been offered to it by means of any “directed selling efforts” within the
meaning of Regulation S under the US Securities Act.
98

Clearing Codes
GE�ERAL I�FORMATIO�
The Swiss Security number (Valorennummer) of the Shares is 2340545. The ISIN is CH0023405456. The
Common Code is 023609983. The SIX ticker symbol is DUFN.
Share Delivery Agent
Credit Suisse serves as share delivery agent.
Independent Auditors
Duration of the mandate and term of office of the independent auditors
Ernst & Young AG, Aeschengraben 9, P.O. Box, 4002 Basel, is the auditor of the Company and has held
the mandate of external auditor of the Company since its inception. Ernst & Young AG was also the auditor of
the acquired companies since 1989. Bruno Chiomento is the auditor in charge since 2005.
Auditing honorarium
Ernst & Young AG received a fee of CHF 1,890,000 for auditing the 2007 financial statements of the Dufry
and its subsidiaries as well as the consolidated financial statements of Dufry Group.
Additional honoraria
Ernst & Young AG received an additional fee of CHF 410,000 for audit related services and CHF 101,000
for tax services.
Supervisory and control instruments vis-à-vis the auditors
The audit committee is responsible for evaluating the independent auditors on behalf of the Board of
Directors.
Listing Agent
In accordance with article 50 of the listing rules of the SIX Swiss Exchange (Kotierungsreglement),
Homburger AG, being recognized as an expert by the Admission Board of the SIX Swiss Exchange, has filed on
behalf of the Company an application for the listing of the Shares on the SIX Swiss Exchange.
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100

Index to Financial Statements
Dufry AG
FINANCIAL STATEMENTS
Audited Consolidated Financial Statements as of December 31, 2007 ........................................... F-4
Consolidated Income Statement ............................................................................................................... F-5
Consolidated Balance Sheet...................................................................................................................... F-6
Consolidated Cash Flow Statement.......................................................................................................... F-7
Consolidated Statement of Changes in Equity ........................................................................................ F-8
Notes to the Consolidated Financial Statements ..................................................................................... F-9
Most important Affiliated Companies...................................................................................................... F-59
Report of the Group Auditors ................................................................................................................... F-61
Audited Statutory Financial Statements as of December 31, 2007.................................................. F-64
Income Statement ...................................................................................................................................... F-65
Balance Sheet............................................................................................................................................. F-66
Notes to the Financial Statements ............................................................................................................ F-67
Appropriation of Available Earnings ....................................................................................................... F-69
Report of the Statutory Auditors............................................................................................................... F-70
Audited Consolidated Financial Statements as of December 31, 2006 ........................................... F-72
Consolidated Income Statement ............................................................................................................... F-73
Consolidated Balance Sheet...................................................................................................................... F-74
Consolidated Cash Flow Statement.......................................................................................................... F-75
Consolidated Statement of Changes in Equity ........................................................................................ F-76
Notes to the Consolidated Financial Statements ..................................................................................... F-77
Most important Affiliated and Associated Companies ........................................................................... F-124
Report of the Group Auditors ................................................................................................................... F-125
Audited Statutory Financial Statements as of December 31, 2006.................................................. F-128
Income Statement ...................................................................................................................................... F-129
Balance Sheet............................................................................................................................................. F-130
Notes to the Financial Statements ............................................................................................................ F-131
Appropriation of Available Earnings ....................................................................................................... F-131
Report of the Statutory Auditors............................................................................................................... F-132
Audited Consolidated Financial Statements as of December 31, 2005 ........................................... F-134
Consolidated Income Statement ............................................................................................................... F-135
Consolidated Balance Sheet...................................................................................................................... F-136
Consolidated Cash Flow Statement.......................................................................................................... F-137
Consolidated Statement of Changes in Equity ........................................................................................ F-138
Notes to the Consolidated Financial Statements ..................................................................................... F-139
Most important Group Companies ........................................................................................................... F-178
Report of the Group Auditors ................................................................................................................... F-179
Audited Statutory Financial Statements as of December 31, 2005.................................................. F-182
Income Statement ...................................................................................................................................... F-183
Balance Sheet............................................................................................................................................. F-184
Notes to the Financial Statements ............................................................................................................ F-185
Appropriation of Available Earnings ....................................................................................................... F-187
Report of the Statutory Auditors............................................................................................................... F-188
F-1

Unaudited Consolidated Financial Statements for the First Half Year ended June 30, 2008..... F-190
Interim Consolidated Income Statement.................................................................................................. F-191
Interim Consolidated Balance Sheet ........................................................................................................ F-192
Interim Consolidated Cash Flow Statement ............................................................................................ F-193
Interim Consolidated Statement of Changes in Equity ........................................................................... F-194
Notes to the Interim Consolidated Financial Statements ........................................................................ F-195
Unaudited Consolidated Financial Statements for the First Half Year ended June 30, 2007..... F-204
Interim Consolidated Income Statement.................................................................................................. F-205
Interim Consolidated Balance Sheet ........................................................................................................ F-206
Interim Consolidated Cash Flow Statement ............................................................................................ F-207
Interim Consolidated Statement of Changes in Equity ........................................................................... F-208
Notes to the Interim Consolidated Financial Statements ........................................................................ F-209
Hudson Group Holdings, Inc. / Airport Management Services, LL.C.
Dufry acquired through the investment vehicle Advent-Hudson, LLC, 11.2 percent of the share capital of
Hudson Group Holdings, Inc. (“Hudson”) alongside with Advent International Corporation, which acquired
68.9 percent of Advent-Hudson, LLC. The legal entity “Hudson Group Holdings, Inc.” was incorporated only in
view of this acquisition as part of the transaction structure. Hudson’s consolidated financial statements comprise
all assets and liabilities of Hudson’s legal entities, which was formerly accounted for under the name “Airport
Management Services, LL.C.”
Audited Combined and Consolidated Financial Statements for the Fifty-Two Weeks Ended
December 30, 2007 and December 31, 2006 (restated) .................................................................. F-218
Independent Auditors’ Report .................................................................................................................. F-218
Combined and Consolidated Balance Sheets........................................................................................... F-219
Combined and Consolidated Statements of Operations.......................................................................... F-221
Combined and Consolidated Statements of Equity ................................................................................. F-223
Combined and Consolidated Statements of Comprehensive Income .................................................... F-225
Combined and Consolidated Statements of Cash Flows......................................................................... F-226
Notes to the Consolidated Financial Statements ..................................................................................... F-228
Unaudited Combined and Consolidated Financial Statements for the Twenty-Six Weeks
ended June 29, 2008............................................................................................................................. F-244
Unaudited Combined and Consolidated Balance Sheet.......................................................................... F-245
Unaudited Combined and Consolidated Statement of Operations ......................................................... F-247
Unaudited Combined and Consolidated Statement of Cash Flows........................................................ F-248
Unaudited Combined and Consolidated Statement of Equity ................................................................ F-250
Unaudited Combined and Consolidated Statement of Comprehensive Income.................................... F-251
Unaudited Combined and Consolidated Financial Statements for the Twenty-Six Weeks
ended July 1, 2007................................................................................................................................ F-254
Unaudited Combined and Consolidated Balance Sheet.......................................................................... F-255
Unaudited Combined and Consolidated Statement of Operations ......................................................... F-257
Unaudited Combined and Consolidated Statement of Cash Flows........................................................ F-258
Unaudited Combined and Consolidated Statement of Equity ................................................................ F-260
Unaudited Combined and Consolidated Statement of Comprehensive Income.................................... F-261
F-2

(This page has been left blank intentionally.)
F-3

Dufry AG:
Audited Consolidated Financial Statements as of December 31, 2007 ........................................... F-4
Consolidated Income Statement ............................................................................................................... F-5
Consolidated Balance Sheet...................................................................................................................... F-6
Consolidated Cash Flow Statement.......................................................................................................... F-7
Consolidated Statement of Changes in Equity ........................................................................................ F-8
Notes to the Consolidated Financial Statements ..................................................................................... F-9
Most important Affiliated Companies...................................................................................................... F-59
Report of the Group Auditors ................................................................................................................... F-61
F-4

consolidATed finAnciAl sTATemenTs
As of december 31, 2007
in thousands of Chf
Net sales
Advertising income
Turnover
Cost of sales
Gross profiT
Selling expenses, net
Personnel expenses
General expenses, net
Depreciation, amortization and impairment
Other operational expenses
Other operational income
Earnings before interest and taxes (EBit)
Financial expenses
Financial income
Earnings before taxes (EBt)
Income taxes
neT eArninGs
F56
attriButaBlE to:
Equity holders of the parent
Minority interest
Earnings pEr sharE attriButaBlE
to Equity holdErs of thE parEnt
Basic earnings per share in CHF
Diluted earnings per share in CHF
DuFry ANNuAl rEPOrt 2007
FINANCIAl rEPOrt
consolidATed finAnciAl sTATemenTs
consolidATed income sTATemenT
F-5
notE
1
2
3
4
5
6
7
8
9
10
30
30
2007
1,885,401
44,855
1,930,256
902,239
1,028,017
392,958
234,552
141,197
70,190
20,656
(23,855)
192,319
40,538
(12,604)
164,385
38,345
126,040
74,970
51,070
5.35
5.27
2006
1,403,758
32,537
1,436,295
691,925
744,370
285,989
179,469
118,413
50,046
21,863
(80,612)
169,202
35,735
(4,996)
138,463
13,883
124,580
107,714
16,866
7.66
7.61

consolidATed bAlAnce sheeT
AsseTs
in thousands of Chf
Cash and cash equivalents
trade and credit card receivables, net
Income tax receivables
Other accounts receivable
Inventories
Current assets
Property, plant and equipment
Intangible assets
Other non-current assets
Deferred tax assets
non-current assets
ToTAl AsseTs
liAbiliTies And shAreholders’ equiTy
in thousands of Chf
trade payables
Financial debt, short-term
Income tax payables
Other liabilities
Provisions, short-term
Current liabilities
Financial debt, long-term
Other non-current liabilities
Deferred tax liabilities
Post-employment benefit obligations
Provisions, long-term
non-current liabilities
ToTAl liAbiliTies
Equity attributable to equity holders of the parent
Minority interest
total equity
ToTAl liAbiliTies And shAreholders‘ equiTy
F-6
DuFry ANNuAl rEPOrt 2007 57
notE
11
12
13
15
16
17
18
19
notE
20
21
23
20
19
24
23
31. 12. 07
125,077
52,026
10,176
79,213
291,443
557,935
128,487
1,052,026
16,980
20,986
1,218,479
1,776,414
31. 12. 07
165,599
16,016
12,719
158,228
10,941
363,503
479,482
8,993
172,927
10,123
3,542
675,067
1,038,570
507,758
230,086
737,844
1,776,414
31. 12. 06
102,390
28,670
3,645
81,980
277,729
494,414
109,000
1,150,138
13,500
15,494
1,288,132
1,782,546
31. 12. 06
157,300
28,546
8,171
149,410
9,717
353,144
587,293
7,447
165,234
10‘512
3 ,7 7 0
774,256
1,127,400
482,124
173,022
655,146
1,782,546

58 DuFry ANNuAl rEPOrt 2007
consolidATed cAsh flow sTATemenT
in thousands of Chf
Earnings before taxes (EBt)
adjustmEnts for
Depreciation, amortization and impairment
Other non-cash items
Increase (decrease) in allowances and provisions
loss (gain) on sale of property, plant and equipment
Net gain on sale of investments
loss (gain) on unrealized foreign exchange differences
Interest expenses
Interest income
Cash flow before working capital changes
Increase in trade and other accounts receivable
Increase in inventories
Increase in trade and other accounts payable
Cash flow generated from operations
Income taxes paid
net cash flows from operating activities
Cash flow from invEsting aCtivitiEs
Acquisition of interests in subsidiaries, net of cash
Sale of interests in subsidiaries, net of cash
Purchase of intangible assets
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Interest received
net cash flows from / (used in) investing activities
Cash flow from finanCing aCtivitiEs
Purchase of treasury shares
Dividends paid to group shareholders
Dividends paid to minority shareholders
Increase in capital by minority equity holder
Proceeds from borrowings
repayment of borrowings
Decrease of loans
Bank transaction costs paid
Interest paid
net cash flows (used in) / from financing activities
Currency translation differences
increase in cash and cash equivalents
Cash and Cash EquivalEnts at thE
– beginning of the period
– end of the period
F-7
notE
5
8
9
17
31
11
2007
164,385
70,190
5,592
8,139
412
(17,847)
(9,933)
40,538
(4,309)
257,167
(19,589)
(31,367)
31,542
237,753
(30,767)
206,986
–
64,663
(9,685)
(57,865)
1,772
5,143
4,028
(13,107)
(14,063)
(7,186)
–
5,341
(95,632)
(8,177)
(900)
(40,587)
(174,311)
(14,016)
22,687
102,390
125,077
2006
138,463
50,046
2,450
(1,966)
(1,751)
(65,198)
1,465
35,735
(2,057)
157,187
(24,702)
(27,121)
35,916
141,280
(17,442)
123,838
(716,153)
228,084
(11,537)
(52,103)
9,988
1,902
(539,819)
–
–
(5,215)
74
732,832
(204,809)
(1,497)
(7,385)
(34,686)
479,314
(12,545)
50,788
51,602
102,390

consolidATed sTATemenT of chAnGes in equiTy
in thousands of Chf
Balance as of 01.01.06
Currency translation differences
Net gain on hedge of investment
total income and expense for the year
recognized directly in equity
Net earnings
total income and expense for the year
Share-based payment (note 36)
Changes in participation of minority
interests (note 37)
Dividend to minority interests
Balance as of 31.12.06
Currency translation differences
Net gain on hedge of investment
total income and expense for the year
recognized directly in equity
Net earnings
total income and expense for the year
Purchase of treasury shares
Share-based payment (note 36)
Changes in participation of minority
interests (note 37)
Dividend to shareholders
Dividend to minority interests
Balance as of 31.12.07
sharE
Capital
70,313
–
–
–
–
–
–
–
–
–
–
–
–
–
sharE
prEmium
256,514
–
–
–
–
–
–
– –
– –
70,313 256,514
–
–
–
–
–
–
–
trEasury
sharEs
–
–
–
–
–
–
–
–
–
–
–
(13,107)
–
DuFry ANNuAl rEPOrt 2007 59
attriButaBlE to Equity holdErs of thE parEnt
CurrEnCy
translation
2,852
(43,553)
29,161
(14,392)
– –
– (14,392)
–
–
–
(11,540)
(49,445)
21,687
(27,758)
– –
– (27,758)
rEtainEd
Ear nings
56,673
–
–
–
107,714
107,714
2,450
–
–
166,837
–
–
–
74,970
74,970
–
5,592
total
386,352
(43,553)
29,161
(14,392)
107,714
93,322
2 , 4 5 0
–
–
482,124
(49,445)
21,687
(27,758)
74,970
47,212
(13,107)
5,592
– – – – – –
– – – – (14,063) (14,063)
– – – – – –
70,313 256,514 (13,107) (39,298) 233,336 507,758
F-8
–
–
minority
intErEst
59,684
(8,586)
–
(8,586)
16,866
8,280
–
110,273
(5,215)
173,022
(13,843)
–
(13,843)
51,070
37,227
–
–
32,000
–
(12,163)
230,086
Equity
446,036
(52,139)
29,161
(22,978)
124,580
101,602
2,450
110,273
(5,215)
655,146
(63,288)
21,687
(41,601)
126,040
84,439
(13,107)
5,592
32,000
(14,063)
(12,163)
737,844

60 DuFry ANNuAl rEPOrt 2007
noTes To The consolidATed finAnciAl sTATemenTs
corporATe informATion
Dufry ltd (‘Dufry’ or ‘the Company’) is a public company with headquarters in Basel, Switzerland. the Company is
one of the world’s leading travel retail companies operating 448 shops worldwide. the shares of the Company are
listed on the Swiss Stock Exchange (SWX). the largest shareholder of the Company is travel retail Investments
SCA, which owns 36.67 % in Dufry and which is controlled by funds managed by Advent International Corp.
the consolidated financial statements of Dufry ltd and its subsidiaries for the year ended December 31, 2007 were
authorized for issue in accordance with a resolution of the Board of Directors on April 11, 2008.
bAsis of prepArATion
Dufry ltd’s consolidated financial statements have been prepared on a historical cost basis, except for derivative
financial instruments and available-for-sale investments that have been measured at fair value. the carrying
values of recognized assets and liabilities that are hedged items in fair value hedges, and are otherwise carried
at cost, are adjusted to record changes in the fair values attributable to the risks that are being hedged. the
consolidated financial statements are presented in Swiss francs and all values are rounded to the nearest thousand
(CHF 000) except when otherwise indicated.
Statement of compliance
the consolidated financial statements of Dufry ltd and its subsidiaries (the ‘Group’) have been prepared in
accordance with International Financial reporting Standards (IFrS).
BaSiS of conSolidation
the consolidated financial statements comprise the financial statements of Dufry ltd and its subsidiaries as at
December 31 each year. Subsidiaries are fully consolidated from the date on which the Group obtains control,
mostly being the date of acquisition, and continue to be consolidated until the date that such control ceases.
the financial statements of the subsidiaries are prepared for the same reporting period as the parent company,
using consistent accounting policies.
All intra-group balances, income and expenses and unrealized gains and losses resulting from intra-group transactions
are eliminated in full.
Minority interests in the net assets (excluding goodwill) of consolidated subsidiaries are identified separately
from the Group’s equity therein. Minority interests consist of the amount of those interests at the date of the
original business combination and the minority’s share of changes in equity since the date of the combination.
losses applicable to the minority, in excess of the minority’s interest in the subsidiary’s equity, are allocated
against the interest of the Group, except to the extent that the minority has a binding obligation and is able to
make an additional investment to cover the losses. the share of the minorities in the net earnings of the Group is
also presented separately. Acquisitions of minority interests are accounted for using the parent entity extension
method, whereby, the difference between the consideration and the book value of the share of the net assets
acquired is recognized in goodwill.
F-9

chAnGes in AccounTinG policy And disclosures
DuFry ANNuAl rEPOrt 2007 61
changeS in accounting policy
the accounting policies adopted are consistent with those of the previous financial year except as follows:
In 2007, Dufry Group has adopted the following new and amended IFrS and IFrIC interpretations. Adoption of
these revised standards and interpretations did not have any material effect on the financial performance or
position of the Group. they did however give rise to additional disclosures.
– IFrS 7 Financial Instruments: Disclosures
– IAS 1 Amendment - Presentation of Financial Statements
– IFrIC 7 Applying the restatement Approach under IAS 29, Financial reporting in Hyperinflationary Economies
– IFrIC 8 Scope of IFrS 2
– IFrIC 9 reassessment of Embedded Derivatives
– IFrIC 10 Interim Financial reporting and Impairment
the Group has also early adopted the following IFrS and IFrIC interpretations. Adoption of these standards and
interpretations did not have any effect on the financial performance or position of the Group. they did however
give rise to additional disclosures.
– IFrS 8 Operating Segments
– IFrIC 11 IFrS 2 – Group and treasury Share transactions
the principal effects of these changes are as follows:
ifRS 7 financial instruments: disclosures
this standard requires disclosures that enable users of the financial statements to evaluate the significance of
the Group‘s financial instruments and the nature and extent of risks arising from those financial instruments. the
new disclosures are included throughout the financial statements. While there has been no effect on the financial
position or results, comparative information has been revised where needed.
iaS 1 presentation of financial Statements
this amendment requires the Group to make new disclosures to enable users of the financial statements to
evaluate the Group‘s objectives, policies and processes for managing capital. these disclosures are in note
25 Financial instruments paragraph “Financial risk management objectives”.
ifRic 7 – applying the Restatement approach under iaS 29, financial Reporting in hyperinflationary economies
IFrIC 7 provides guidance on how to apply the requirements of IAS 29 in a reporting period in which an entity
identifies the existence of hyperinflation in the economy of its functional currency, when the economy was not
hyperinflationary in the prior period. the interpretation had no impact on the financial position or performance
of the Group.
ifRic 8 Scope of ifRS 2
this interpretation requires IFrS 2 to be applied to any arrangements in which the entity cannot identify specifically
some or all of the goods received, in particular where equity instruments are issued for consideration, which
appears to be less than fair value. As equity instruments are only issued to employees in accordance with the
employee share scheme, the interpretation had no impact on the financial position or performance of the Group.
ifRic 9 Reassessment of embedded derivatives
IFrIC 9 states that the date to assess the existence of an embedded derivative is the date that an entity first
becomes a party to the contract, with reassessment only if there is a change to the contract that significantly
modifies the cash flows. As the Group has no embedded derivative requiring separation from the host contract,
the interpretation had no impact on the financial position or performance of the Group.
F-10

62 DuFry ANNuAl rEPOrt 2007
ifRic 10 interim financial Reporting and impairment
the Group adopted IFrIC Interpretation 10 as of January 1, 2007, which requires that an entity must not reverse an
impairment loss recognized in a previous interim period in respect of goodwill or an investment in either an equity
instrument or a financial asset carried at cost. As the Group had no impairment losses previously reversed, the
interpretation had no impact on the financial position or performance of the Group.
ifRS 8 operating Segments
this standard requires disclosure of information about the Group‘s operating segments and replaced the requirement
to determine primary (business) and secondary (geographical) reporting segments of the Group. As the
Group determined that the operating segments were the same as the business segments previously identified
under IAS 14 Segment reporting, no additional disclosures about each of these segments are required.
ifRic 11 ifRS 2 – group and treasury Share transactions
the Group has elected to adopt IFrIC Interpretation 11 as of January 1, 2007, insofar as it applies to consolidated
financial statements. this interpretation requires arrangements whereby an employee is granted rights to an
entity‘s equity instruments to be accounted for as an equity-settled scheme, even if the entity buys the instruments
from another party, or the shareholders provide the equity instruments needed.
changeS in diScloSuReS
trade and credit card receivables
Credit card receivables amounting to CHF 38.2 million in 2007 (CHF 21.5 million in 2006) are included in “trade
and credit card receivables” (note 12) for the financial periods starting on or after January 1, 2007. Previously the
credit card receivables were disclosed in “Other accounts receivable” (note 13). the comparative figures have
been restated accordingly.
capital work in progress
Capital work in progress, which comprises unfinished capital expenditure projects, amounting to CHF 10.2 million
in 2007 (CHF 7.0 million in 2006) are included in “Property, plant and equipment” (note 16) for the financial periods
starting on or after January 1, 2007. Previously the capital work in progress was disclosed in “Other non-current
assets” (note 18). the comparative figures have been restated accordingly.
siGnificAnT AccounTinG esTimATes And AssumpTions
the preparation of the Group‘s financial statements requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of
contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could
result in outcomes that could require a material adjustment to the carrying amount of the asset or liability in the
future.
eStimateS and aSSumptionS
the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet
date, which may have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are discussed below.
concession rights
Concession rights acquired in a business combination are valued at fair value as at the date of acquisition. the useful
lives of operating concessions are assessed to be either finite or indefinite based on individual circumstances. the
useful lives of operating concessions are reviewed annually to determine whether the indefinite life assessment for
those concessions where it is assumed continues to be sustainable. the Group tests the operating concessions with
indefinite useful lives for impairment. the underlying calculation requires the use of estimates.
F-11

DuFry ANNuAl rEPOrt 2007 63
Brands and goodwill
the Group tests brands and goodwill annually for impairment in accordance with IAS 36. the underlying calculation
requires the use of estimates.
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 assessment is uncertain. the Group recognizes liabilities for tax audit issues based on estimates of whether
additional taxes will be payable. Where the final tax outcome is different from the amounts that were initially
recorded, such differences will impact the income tax and deferred tax provisions in the period in which such
assessment is made.
deferred tax assets
Deferred tax assets are recognized for unused tax losses only to the extent that it is probable that taxable profit will
be available against which the losses can be utilized. Significant management judgment is required to determine
the amount of deferred tax assets that can be recognized, based upon the likely timing and level of future taxable
profits together with future tax planning strategies. Further details are given in note 19.
Share-based payments
the Group measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. Estimating fair value requires determining the most
appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions
of the grant. this also requires determining the most appropriate inputs to the valuation model including the
expected life of the option, volatility and dividend yield and making assumptions about them. the assumptions
and models used are disclosed in note 36.
pension and other post-employment benefit obligations
the cost of defined benefit pension plans and other post-employment benefits is determined using actuarial
valuations. the actuarial valuation involves making assumptions about expected rates of return on assets, future
salary increases, mortality rates and future pension increases. Due to the long term nature of these plans, such
estimates are subject to significant uncertainty. Further details are given in note 24.
summAry of siGnificAnT AccounTinG policies
foReign cuRRency tRanSlation
the consolidated financial statements are expressed in Swiss Francs (CHF). Each company in the Group determines
its own functional currency and items included in the financial statements of each entity are measured
using that functional currency. transactions in foreign currencies are initially recorded at the functional currency
rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
retranslated at the functional currency rate of exchange ruling at the balance sheet date. All differences are taken
to profit or loss with the exception of differences on foreign currency borrowings that provide a hedge against a net
investment in a foreign entity. these are taken directly to equity until the disposal of the net investment, at which
time they are recognized in profit or loss. tax charges and credits attributable to exchange differences on those
borrowings are also dealt with in equity. Non-monetary items that are measured in terms of historical cost in a
foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary
items measured at fair value in a foreign currency are translated using the exchange rates at the date when the
fair value was determined. Any goodwill arising on the acquisition of an operation and any fair value adjustments
to the carrying amounts of assets and liabilities arising on that acquisition are treated as assets and liabilities of
the respective holding company and translated at the closing rate.
F-12

64 DuFry ANNuAl rEPOrt 2007
As at the reporting date, the assets and liabilities of all subsidiaries reporting in foreign currency are translated
into the presentation currency of Dufry (Swiss Francs) at the rate of exchange ruling at the balance sheet date and
their income statements are converted at the average exchange rates of each month. the exchange differences
arising on the translation are taken directly to a separate component of equity. On disposal of a foreign entity, the
deferred cumulative amount recognized in equity relating to that particular foreign operation is recognized in the
income statement.
Dufry has considered some intercompany long-term loans, which are not likely to be settled in a foreseeable
future as being part of the net investment in such subsidiary. In compliance with IAS 21 paragraph 15 the related
exchange differences have been considered in a separate component of the equity, until the disposal of the net
investment or the repayment of the loan, at which time they are included in the income statement as part of the
gain or loss on disposal.
cash and cash equivalents
Cash and cash equivalents consist of cash on hand, cash and short-term deposits with banks, with maturity of
90 days or less.
trade and credit card receivables
trade receivables and credit card receivables are stated at their nominal value less an allowance for any
uncollectible amount. the allowance for doubtful accounts is established based on an individual evaluation when
collection is no longer possible based on experience.
effective interest method
the effective interest method is a method of calculating the amortized cost of a financial asset and of allocating
interest income over the relevant period. the effective interest rate is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.
Income is recognized on an effective interest basis for debt instruments other than those financial assets at fair
value.
impairment of financial assets
the Group assesses at each balance sheet date whether there is objective evidence that a financial asset or
group of financial assets are impaired. In the case of equity securities classified as available for sale, a significant
or prolonged decline in the fair value of the security below its cost is considered in determining whether the
securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss –
measured as the difference between the acquisition cost and the current fair value, less any impairment loss
on that financial asset previously recognized in profit or loss – is removed from equity and recognized in the
income statement. Impairment losses recognized in the income statement on equity instruments are not reversed
through the income statement.
inventories
Inventories are valued at the lower of historical cost or net realizable value. the historical costs are determined
using the FIFO method. Historical cost includes all expenses incurred in bringing the inventories to their present
location and condition. this includes import duties, transport and handling costs and any other directly attributable
costs of acquisition. Purchase discounts and rebates are deducted in determining the cost of inventories.
the net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs
necessary to make the sale. Inventories are impaired for obsolence and expired goods are fully written off.
F-13

DuFry ANNuAl rEPOrt 2007 65
other non-current assets
Other non-current assets include basically guarantee deposits and loans receivable maturing after 12 months.
property, plant and equipment
these are stated at cost less accumulated depreciation and any impairment in value. Depreciation is computed
on a straight-line basis over the shorter of the estimated useful life of the asset and the lease term.
the useful lives applied are as follows:
– Buildings 10 to 25 years
– leasehold improvements 5 years
– Furniture, fixture and vehicles 5 years
– Computer hardware 5 years
the asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.
land is valued at acquisition cost and not depreciated as it is deemed to have an indefinite life. Additional costs,
which extend the useful life of tangible assets, are capitalized. there are no financing costs associated with the
construction of tangible assets.
leasing
leases of assets under which the Group essentially assumes all the benefits and risks of ownership are classified
as finance leases. Finance leases are capitalized at the inception of the lease at the fair value of the leased property
or if lower at the present value of the minimum lease payments. the assets acquired under these contracts are
depreciated over the shorter of the estimated useful life of the asset or the lease term. the corresponding financial
obligations are included in the liabilities. leases of assets under which all the risks and rewards of ownership are
effectively retained by the lessor are classified as operating leases and payments made are charged to the income
statement on a straight-line basis. the Group does not hold any finance leases during the periods disclosed.
investment properties
Investment property is held for long-term purposes and is not occupied by the Group itself. Such properties are
treated as non-current investments and are carried at fair value. Fair value is the market value as determined
by external appraisers on an annual basis. Changes in fair value are recorded in the income statement and are
included in operating income in the period in which they arise. During the periods disclosed, the Group did not
hold any property in this category.
Business combinations and goodwill
Investments in subsidiaries
In cases where the Group directly or indirectly holds a majority of voting rights or otherwise exercises any other
form of direct or indirect control, the assets and liabilities, expenses and income of the companies concerned
are included in full in the consolidated financial statements. Minority interests in the earnings and equity of
subsidiaries are disclosed separately.
Companies are consolidated from the date at which control is acquired by use of the purchase method of
accounting . Identifiable assets acquired, liabilities and contingent liabilities assumed in a business combination
are measured initially at the fair values at the acquisition date, irrespective of the extent of any minority interests .
the excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets is recorded
F-14

66 DuFry ANNuAl rEPOrt 2007
as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired , the
difference is directly recognized in the income statement. the value of recorded goodwill and other intangibles
having an indefinite useful life are reviewed annually and if management determines that impairment in the
carrying value exists, an impairment loss is recognized.
If a subsidiary is sold, the difference between the selling price and the net assets inclusive the translation
difference is recognized as net gain on sale of investments in the consolidated income statement.
investments in associates
Investments in associates are accounted for using the equity method of accounting. these are entities in which
the Group has significant influence (20 % – 50 % ownership) and which are neither subsidiaries nor joint ventures.
the investment in associates is carried in the balance sheet at cost plus post acquisition changes in the Group’s
share of net assets of the associates, less any impairment in value. the income statement reflects the Group’s
share of the results of operations of these associates.
financial investments
Financial investments (less than 20 % owned) are stated at fair value. Dividends received from them, if any, as well
as the change in fair value are included in the income statement.
intangible assets
Concession rights and brands acquired both separately and from a business combination
Intangible assets acquired separately are capitalized at cost and when acquired from a business combination,
they are capitalized at fair value as at the date of acquisition. Following initial recognition, the cost model is
applied to the class of intangible assets. the useful lives of these intangible assets are assessed to be either
finite or indefinite . Intangible assets with finite lives are amortized over the useful economic life. the useful life
of an intangible asset with an indefinite life is reviewed annually to determine whether indefinite life assessment
continues to be supportable. If not, the change in useful life assessment from indefinite to finite is made on a
prospective basis. Brands have indefinite useful lives and are therefore not amortized.
the indefinite life concession rights have been granted for a period ranging from 10 to 30 years by the relevant
airport authorities. According to Dufry’s experience, these concession rights have always been renewed without
significant time and effort to the Group. As a result these concession rights are assessed as having an indefinite
useful life.
Goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of the identifiable net assets of the
related subsidiary or associate at the date of the acquisition. Goodwill is carried at cost less accumulated impairment
losses. the carrying amount of goodwill will be reviewed annually for impairment or when events or changes
in circumstances indicate that the carrying value is not recoverable. Gains and losses on the sale of a subsidiary
include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to the cash-generating
units for the purpose of impairment testing.
impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortization but are tested annually for impairment.
Assets that are subject to depreciation and amortization are reviewed for impairment whenever events or circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognized when the
carrying amount of an asset exceeds its recoverable amount. the recoverable amount is the higher of an asset’s
fair value less costs to sell and its value in use. For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash flows (cash-generating units).
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DuFry ANNuAl rEPOrt 2007 67
investments and other financial assets
the Group classifies its investments in the following categories: financial assets at fair value through profit or
loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. the classification
depends on the purpose for which the investments were acquired. Management determines the classification
of its investments at initial recognition.
Financial assets at fair value through profit or loss
this category has two sub-categories: financial assets held for trading, and those designated at fair value through
profit or loss at inception. A financial asset is classified in this category if acquired principally for the purpose
of selling in the short-term. Derivatives are also categorized as held for trading unless they are designated as
hedges. Assets in this category are classified as current assets if they are either held for trading or are expected
to be realized within 12 months of the balance sheet date.
loans and other accounts receivable
loans and other accounts receivable are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. they arise when the Group provides money, goods or services directly to a
debtor with no intention of trading the receivable. loans and receivables are included in current assets, except for
maturities greater than 12 months after the balance sheet date, in which case they are classified as non-current
assets.
Held-to-maturity investments
Held-to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed
maturities that the Group’s management has the positive intention and ability to hold to maturity. At the end of the
year, the Group did not hold any investments in this category.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified
in any of the other categories. they are included in non-current assets unless management intends to dispose of
the investment within 12 months of the balance sheet date. Purchases and sales of investments are recognized on
the trade date. this is the date on which the Group commits to purchase or sell the asset. Investments are initially
recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or
loss. Investments are derecognized when the rights to receive cash flows from the investments have expired or
have been transferred and the Group has transferred substantially all risks and rewards of ownership. Availablefor-sale
financial assets and financial assets at fair value through profit or loss are subsequently carried at fair
value. loans and receivables and held-to-maturity investments are carried at amortized cost using the effective
interest method. realized and unrealized gains and losses arising from changes in the fair value of the financial
assets at fair value through profit or loss category are included in the income statement in the period in which they
arise. unrealized gains and losses arising from changes in the fair value of non-monetary securities classified as
available-for-sale are recognized in equity. When securities classified as available-for-sale are sold or impaired,
the accumulated fair value adjustments are included in the income statement as gains and losses from investment
securities.
the fair values of quoted investments are based on current bid prices. If the market for a financial asset is not
active (and for unlisted securities), the Group establishes fair value by using valuation techniques. these include
the use of recent arm’s length transactions, reference to other instruments that are substantially the same,
discounted cash flow analysis, and option pricing models refined to reflect the issuer’s specific circumstances.
financial liaBilitieS and equity inStRumentS iSSued By the gRoup
classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangement.
F-16

68 DuFry ANNuAl rEPOrt 2007
equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all
of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Share capital
Dividends are recognized as liabilities in the period in which they are approved by the respective company’s
shareholders.
financial liabilities
Financial liabilities are classified as either financial liabilities at fair value through profit and loss or other financial
liabilities.
Financial liabilities at fair value through profit and loss
Financial liabilities at fair value through profit and loss are initially measured at fair value and subsequently stated
at fair value, with any resulting gain or loss recognized in profit and loss.
Financial guarantee contract liabilities
Financial guarantee contract liabilities are measured initially at their fair values and are subsequently measured
at the higher of the amount recognized as a provision and the amount initially recognized less cumulative
amortization recognized in accordance with the revenue recognition policies set out above.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other
financial liabilities are subsequently measured at amortized cost using the effective interest method, with interest
expense recognized on an effective yield basis.
Borrowing costs
Borrowing costs are recognized as an expense when incurred, except for the transaction costs, which are set-off
from the bank loans and amortized over the period of the credit facility.
other accounts payable
Other accounts payable comprise of current or renewable liabilities due within one year. It includes accrued
liabilities , salaries and wages and other liabilities.
financial RiSk factoRS
the Group operates worldwide and is therefore exposed to a variety of financial risks such as foreign exchange
risk, credit risk, liquidity risk and cash flow and interest rate risk. the risks are discussed in note 25 “Financial
instruments”.
pRoviSionS
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past
event, where it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and where a reliable estimate can be made of the amount of the obligation. Provisions for litigations
or claims are recognized when a present obligation to a third party exists, which has arisen from past events, a
reasonable estimate of that obligation can be made and the management considers that it is more likely than not
that an economic outflow will occur.
F-17

DuFry ANNuAl rEPOrt 2007 69
penSionS and otheR poSt-employment BenefitS
pension obligations
Employees of the Group are eligible for retirement, invalidity and death benefits in accordance with the local
Social Security schemes prevailing in the countries concerned and defined benefit or defined contribution plans
provided through separate funds, insurance plans, or unfunded arrangements. the pension plans are generally
funded through regular contributions made by the employer, the employee and through the income generated by
their capital investments. Where, due to local conditions, a plan is not funded, a liability is recorded in the financial
statements.
Where the Group has defined contribution plans, the net periodic pension cost is recognized in the income
statement and equals the contributions made by the employer.
In the case of defined benefit plans, the net periodic pension cost is assessed using the projected unit credit
method . the defined benefit obligation is measured at the present value of the estimated future cash flows. the net
periodic pension cost less employee contributions is included in the personnel expenses where the employees are
located. Plan assets are recorded at their fair value in the books of the stand-alone pension fund. Actuarial gains
or losses beyond the corridor arising from adjustments posted, changes in actuarial assumptions, and amendments
to pension plans, are recognized over the average remaining service lives of the related employees.
termination benefits
termination benefits are payable when employment is terminated before the normal retirement date, or whenever
an employee accepts voluntary redundancy in exchange for the benefits. the Group recognizes termination
benefits when it is demonstrably committed to either, terminating the employment of current employees according
to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer
made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are
discounted to present value.
ShaRe-BaSed payment tRanSactionS
Employees (including senior management) of the Group may receive part of their remuneration in the form of
share-based payment transactions, whereby employees render services as consideration for equity instruments
(‘equity settled transactions’). In situations where some or all of the goods or services received by the entity as
consideration for equity instruments cannot be specifically identified, they are measured as the difference between
the fair value of the share-based payment and the fair value of any identifiable goods or services received at the
grant date. For cash-settled transactions, the liability is measured at each reporting date until settlement.
equity-Settled tRanSactionS
the cost of equity-settled transactions with employees, for awards granted after November 7, 2002 is measured
by reference to the fair value at the date on which they are granted. the fair value is determined by an external
expert using the binomial pricing model.
the cost of equity-settled transactions is recognized, together with a corresponding increase in equity, over the
period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (‘the vesting date’). the cumulative expense recognized for equitysettled
transactions at each reporting date until the vesting date reflects the extent to which the vesting period has
expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. the income
statement charge or credit for a period represents the movement in cumulative expense recognized as at the
beginning and end of that period.
No expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional
upon a market condition, which are treated as vesting irrespective of whether or not the market condition is
satisfied , provided that all other performance conditions are satisfied.
F-18

70 DuFry ANNuAl rEPOrt 2007
Where the terms of an equity-settled award are modified, the minimum expense recognized is the expense if the
terms had not been modified. An additional expense is recognized for any modification, which increases the total
fair value of the share based payment arrangement, or is otherwise beneficial to the employee as measured at
the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognized for the award is recognized immediately. However, if a new award is substituted for
the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new
awards are treated as if they were a modification of the original award, as described in the previous paragraph.
the dilutive effect of outstanding awards is reflected as additional share dilution in the computation of earnings
per share.
caSh-Settled tRanSactionS
the cost of cash settled transactions is measured initially at fair value at the grant date using a binomial model.
this fair value is expensed over the period until vesting with recognition of a corresponding liability. the liability
is re-measured at each balance sheet date up to and including the settlement date with changes in fair value
recognized in profit or loss.
Revenue Recognition
revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured. revenue is measured at the fair value of the consideration received, excluding
discounts, rebates, and other sales taxes or duty. the following specific recognition criteria must also be met
before revenue is recognized:
turnover
Net sales
Dufry’s net sales consist of travel related retail sales of goods, which are sold duty free or duty paid, depending on
local laws or regulations. Sales are recognized when significant risks and rewards of ownership of the products
have been transferred to the customer. retail sales are settled in cash or by credit card. the sales are considered
net, after deducting, where applicable, trade discounts or sales taxes.
Advertising income
Advertising income is recognized in the period, in which the services have been rendered, and the amount of
income generated in respect of this transaction can be measured reliably and it is probable that the economic
benefits associated with the transaction will flow to the Company.
government grants
Government Grants are recognized at fair value where there is reasonable assurance that the grant will be
received and all related conditions will be complied with.
otheR calculation methodS and definitionS in the income Statement
cost of sales
Cost of sales are recognized when a subsidiary sells a product and comprise the purchase price and the cost
incurred until the product arrives at the warehouse, i.e. import duties, transport and handling cost. Additionally,
this amount includes inventory differences and valuation adjustments to the inventory.
other operational expenses and other operational income
Other operational expenses and other operational income reflect the effects on non-recurring transactions, gains
or losses on sale of property, plant and equipments or intangible assets, as well as changes in impairments and
provisions. Also included in other operational income is the net income from the sale of interest in subsidiaries,
less related expenses incurred to perform these transactions.
F-19

DuFry ANNuAl rEPOrt 2007 71
financial result
the financial result includes interest on borrowings with third parties and interest on trade accounts with third
parties. It also includes foreign exchange results deriving from the revaluation of monetary assets and liabilities
in foreign currency.
taxeS
income tax assets and liabilities
Income tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. the tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the balance sheet date. Current income tax relating to items
recognized directly in equity is recognized in equity and not in the income statement.
Deferred income taxes
Deferred income taxes are provided using the liability method on temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognized for all taxable temporary differences, except:
– where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; and
– in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and
it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax
credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, the carry forward of unused tax credits and unused tax losses can be utilized
except:
– where the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; and
– in respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred income tax assets are recognized only to the extent that it is probable that
the temporary differences will reverse in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilized.
the carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilized. unrecognized deferred income tax assets are reassessed at each balance sheet
date and are recognized to the extent that it has become probable that future taxable profit will allow the deferred
tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date. Deferred income tax relating to items recognized directly in equity
is recognized in equity and not in the income statement.
Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to
set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same
taxable entity and the same taxation authority.
F-20

72 DuFry ANNuAl rEPOrt 2007
deRivative financial inStRumentS and hedging
derivative financial instruments
the Group enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate
risk, including foreign exchange forward contracts, foreign exchange swaps and over the counter plain vanilla
options. Further details of derivative financial instruments are disclosed in note 25 ”Financial instruments” to
the financial statements.
Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently
re-measured to their fair value at each balance sheet date. the resulting gain or loss is recognized in profit or loss
immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing
of the recognition in profit or loss depends on the nature of the hedge relationship.
hedge accounting
the Group designates derivatives as fair value hedges, cash flow hedges, hedges of net investments in foreign
operations and derivatives that do not qualify for hedge accounting.
Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the
income statement, together with any changes in the fair value of the hedged asset or liability that are attributable
to the hedged risk.
Cash flow hedge
the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges are recognized in equity. the gain or loss relating to the ineffective portion is recognized immediately in
the income statement.
Amounts accumulated in equity are recorded in the income statement in the periods when the hedged item will
affect the profit or loss. However, when the forecast transaction that is hedged results in the recognition of a
non-financial asset or a liability, the gains and losses previously deferred in equity are transferred from equity
and included in the initial measurement of the cost of the asset or liability.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting ,
any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast
transaction is ultimately recognized in the income statement. When a forecast transaction is no longer expected
to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income
statement .
Hedges of net investments in foreign operations
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss
on the hedging instrument relating to the effective portion of the hedge is recognized in equity; the gain or loss
relating to the ineffective portion is recognized immediately in the income statement.
Gains and losses accumulated in equity are included in the income statement when the foreign operation is
d i s p o s e d o f.
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative
instruments that do not qualify for hedge accounting are recognized immediately in the income statement.
F-21

DuFry ANNuAl rEPOrt 2007 73
Related paRtieS
A party is related to an entity if the party directly or indirectly controls, is controlled by, or is under common control
with the entity, has an interest in the entity that gives it significant influence over the entity, has joint control over
the entity or is an associate or a joint venture of the entity. In addition, members of the key management personnel
of the entity or close members of the family are also considered related parties as well as post employment
benefit plans for the benefit of employees of the entity. transactions with related parties are conducted on an
arm’s-length basis.
Segment RepoRting
An operating segment is a group of assets and operations engaged in providing products or services that are
subject to risks and returns that are different from those of other business segments.
the Group’s risks and returns are predominantly affected by the fact that it operates in different countries.
therefore , the Group reports segmental information in its financial statements in the same way as it does
internally to senior management using geographical segments.
A geographical segment is engaged in providing products or services within a particular economic environment
that are subject to risks and returns, that are different from those of segments operating in other economic
environments .
futuRe changeS in accounting policieS
Standards issued but not yet effective.
iaS 1 (amended) – presentation of financial Statements (effective from January 1, 2009)
the amendment requires additional disclosures for puttable financial instruments classified as equity, which
mirror those currently required for financial liabilities (in accordance with IFrS 7 Financial Instruments:
Disclosures ) and for capital (in accordance with IAS 1 Presentation of Financial Statements). the Group expects
that this amendment will have no impact on the Group’s financial statements as no such puttable financial
instruments exist.
iaS 23 (revised) Borrowing costs (effective from January 1, 2009)
the standard has been revised to require capitalization of borrowing costs when such costs relate to a qualifying
asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended
use or sale. In accordance with the transitional requirements in the Standard, the Group will adopt this as a
prospective change. Accordingly, borrowing costs will be capitalized on qualifying assets with a commencement
date after January 1, 2009. No changes will be made for borrowing costs incurred to this date that have been
expensed.
iaS 27 (revised) – consolidated and separate financial statements (effective from July 1, 2009)
IAS 27 (revised) requires the effects of all transactions with non-controlling (minority) interests to be recorded
in equity if there is no change in control. the standard also specifies the accounting when control is lost. Any
remaining interest in the entity is re-measured to fair value and a gain or loss is recognized in profit or loss.
iaS 32 (amended) – financial instruments: presentation (effective from January 1, 2009)
the amendment clarifies that puttable financial instruments will be classified as equity if they have all of the
features specified in the standard. Consequently the amendment will permit to recognize capital as equity rather
than as financial liability as currently required by IAS 32. this will better align the accounting treatment of such
transactions with their commercial rationale. the Group expects that this amendment will have no impact on the
Group’s financial statements as no such puttable financial instruments exist.
F-22

74 DuFry ANNuAl rEPOrt 2007
ifRS 2 (amended) – Share-based payment – vesting conditions and cancellations
(effective from January 1, 2009)
the amendment clarifies that vesting conditions are service conditions and performance conditions only. It also
specifies that all cancellations, whether by the entity or by other parties, should receive the same accounting
treatment. the Group will apply the amendments of IFrS 2 from January 1, 2009, but no impact on the Group’s
financial statements is expected.
ifRS 3 (revised) (effective from July 1, 2009)
the standard continues to apply the acquisition method to business combinations, with some significant changes.
For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with
some contingent payments subsequently re-measured at fair value through income. Goodwill may be calculated
based on the parent’s share of net assets or it may include goodwill related to the non-controlling interest. All
transaction costs will be expensed.
ifRic 12 Service concession arrangements (effective from January 1, 2008)
this Interpretation applies to service concession operators and explains how to account for the obligations
undertaken and rights received in service concession arrangements. the entities of the Group are not operators
of public services and hence this interpretation will have no impact on the Group.
ifRic 13 customer loyalty programs (effective July 1, 2008)
this Interpretation requires customer loyalty award credits to be accounted for as a separate component of the
sales transaction in which they are granted and therefore part of the fair value of the consideration received is
allocated to the award credits and deferred over the period that the award credits are fulfilled. the Group expects
that this interpretation will have no impact on the Group‘s financial statements as no such schemes currently
exist.
ifRic 14 iaS 19 the limit on a defined Benefit asset, minimum funding Requirements and their interaction
(effective January 1, 2008)
this Interpretation provides guidance on how to assess the limit on the amount of surplus in a defined benefit
scheme that can be recognized as an asset under IAS 19 Employee Benefits. the Group expects that this
Interpretation may have a small impact on the financial position of the Group as the Swiss defined benefit schemes
are currently in surplus.
F-23

noTes
1 neT sAles
Different breakdowns of net sales are as follows:
in thousands of Chf
nEt salEs By produCt CatEgory
Perfumes and Cosmetics
Wine and Spirits
Watches, Jewelry and Accessories
Confectionery and Food
tobacco goods
Electronics
Fashion, leather and Baggage
literature and Publications
toys, Souvenirs and other goods
ToTAl
nEt salEs By markEt sECtor
Duty free
Duty paid
ToTAl
nEt salEs By ChannEl
Airports
Cruise liners and seaports
Downtown, hotels and resorts
railway stations and other
ToTAl
2 sellinG expenses, neT
in thousands of Chf
Concession and rental fees
Credit card commissions
Advertising and commission expenses
Packaging materials
Other selling expenses
selling expenses
Concession and rental income
Commission income
Other selling income
selling income
ToTAl
F-24
DuFry ANNuAl rEPOrt 2007 75
2007
516,264
335,455
305,072
208,417
185,569
107,485
107,477
59,969
59,693
1,885,401
1,610,241
275,160
1,885,401
1,512,410
139,881
141,039
92,071
1,885,401
2007
376,307
21,307
11,568
7,748
4,198
421,128
(8,708)
(4,011)
(15,451)
(28,170)
392,958
2006
346,852
234,590
224,222
160,656
147,751
104,526
76,958
53,605
54,598
1,403,758
1,154,961
248,797
1,403,758
1,073,852
118,187
120,567
91,152
1,403,758
2006
271,521
15,098
8,470
4,270
3,033
302,392
(4,979)
(3,784)
(7,640)
(16,403)
285,989

3 personnel expenses
in thousands of Chf
Salaries and wages
Social security expenses
retirement benefits
Other personnel expenses
ToTAl
number of full time equivalents
4 GenerAl expenses, neT
in thousands of Chf
Premises 1
legal, consulting and audit fees
76 DuFry ANNuAl rEPOrt 2007
repairs, maintenance and utilities
Pr and advertising
Office and administration
EDP and It expenses
travel, car, entertainment and representation
taxes, other than income taxes
Insurances
Bank expenses
Franchise and management fees expenses1 Franchise and management fees income
ToTAl
2007
173,300
36,019
2,837
22,396
234,552
7,094
2007
20,760
20,140
20,105
12,572
12,391
11,511
9,948
8,522
6,371
2,712
16,215
(50)
141,197
1 Franchise fees amounting to CHF 5.8 million paid by subsidiaries in Cayman Island to the landlord in 2006 have been reclassified from
premises.
5 depreciATion, AmorTizATion And impAirmenT
in thousands of Chf
Depreciation
Impairment
total property, plant and equipment
Amortization
Impairment
total intangible assets
ToTAl
2007
31,561
1,592
33,153
36,366
671
37,037
70,190
2006
135,552
27,081
2,918
13,918
179,469
6,526
2006
21,166
17,081
13,250
11,034
13,046
7,792
9,153
5,742
5,014
2,363
13,235
(463)
118,413
2006
26,159
–
26,159
23,887
–
23,887
50,046
the impairment on property, plant and equipment and on intangible assets relate to the retail operations at the
Hong Kong airport (CHF 1.4 million), and to the border and airport shops in Belarus (CHF 0.9 million). the business
in Hong Kong will be abandoned as the new terminal has not reached the expected level of passengers and in
Belarus due to a termination of the agreement.
F-25
notE
16
17

6 oTher operATionAl expenses
in thousands of Chf
Expenses for provisions
Consulting expenses related to projects
Bad debt, loan allowances and write offs
Arrangement fees for new operations and start-up costs
Costs of closing shops or locations
losses on sale of non-current assets
losses on sale of subsidiaries
Costs of assets lost during the hurricanes
Other
ToTAl
7 oTher operATionAl income
in thousands of Chf
Net gain on sale of investments 1
release of project costs
release of provisions
Gain on sale of non-current assets
Insurance refunds
Other
ToTAl
DuFry ANNuAl rEPOrt 2007 77
2007
3,679
2,574
2,417
3,606
1,019
516
484
–
6,361
20,656
2007
18,331
1,425
1,274
–
–
2,825
23,855
1 In 2007, the net gain on sale of investments of CHF 18.3 million was realized through the over-allotment exercised by the banks on January
21, 2007 following the Initial Public Offering of Dufry South America ltd in December 2006.
8 finAnciAl expenses
in thousands of Chf
Interest on bank loans and overdrafts
Discounted interest on financial liabilities at fair value
Other interest expenses
Other finance expenses
ToTAl
2007
39,610
546
217
165
40,538
2006
584
1,714
2,612
3,016
3,202
1,612
–
4,797
4,326
21,863
2006
65,198
797
4,968
301
7,859
1,489
80,612
2006
35,487
93
155
–
35,735
the interest on bank loans and overdrafts include accrued bank arrangement fees. the credit line commission
amounting to CHF 2.0 million in 2007 (CHF 1.1 million in 2006) has been set-off from bank debt (see note 20).
Other interest expenses mainly include interest on consignment inventories.
F-26

9 finAnciAl income
in thousands of Chf
78 DuFry ANNuAl rEPOrt 2007
Interest income on short-term deposits
Other interest and finance income
total interest income
Foreign exchange gain, net
ToTAl
10 income TAxes
in thousands of Chf
Consolidated earnings before income tax ( EBt )
Expected tax rate in %
tax at the expected rate
Effect of income not subject to income tax
Effect of different tax rates in other countries / regimes
Effect on valuation of investments in subsidiaries
Effect of non-deductible expenses
Effect of changes with regard to the recognition of tax loss carry-forwards
Effect of non-recoverable withholding taxes
Effect of prior year adjustments
Other effects
ToTAl
Current income taxes
of which corresponding to the current period
of which adjustments recognized in relation to prior years
Deferred income taxes
of which related to the origination / reversal of temporary differences
of which adjustments due to change in tax rates
ToTAl
2007
4,091
218
4,309
8,295
12,604
2007
164,385
25.0 %
41,096
(26,869)
1,921
12,140
1,701
5,838
6,264
(1,965)
(1,781)
38,345
28,525
32,063
(3,538)
9,820
9,477
343
38,345
2006
2,015
42
2,057
2,939
4,996
2006
138,463
26.6 %
36,831
(40,506)
(8,359)
17,343
611
3,772
5,357
(590)
(576)
13,883
22,342
22,932
(590)
(8,459)
(8,459)
–
13,883
the expected tax rated used for 2007 is at 25.0 % (2006: 26.6 %). the tax rate used decreased mainly due to the
reduction of rates in several countries(Spain 32 %, 2006: 35 %; Greece 25 %, 2006: 29 %; Singapore 18 %, 2006:
20 %; Aruba 28 %, 2006: 35 %) and due to increase of sales of business operating in income tax exempt areas
(Egypt, Algeria and Dominican republic). On the other hand the tax rate used was negatively affected by the
increase in the united States of America (42.6 %, 2006: 38.6 %).
F-27

11 cAsh And cAsh equivAlenTs
in thousands of Chf
Cash
Cash at bank
Short-term deposits
ToTAl
DuFry ANNuAl rEPOrt 2007 79
31.12.07
6,700
116,792
1,585
125,077
31.12.2006
10,596
88,483
3,311
102,390
Cash and cash equivalents include CHF 8.8 million (2006: CHF 3.1 million) held by subsidiaries operating in
countries with exchange controls or other legal restrictions.
Cash at bank includes CHF 30.6 million (2006: CHF 1.7 million) which are part of a notional cash pooling.
12 TrAde And crediT cArd receivAbles, neT
in thousands of Chf
trade receivables
Bad debt allowances
Credit card receivables
ToTAl
31.12.07
14,791
(985)
38,220
52,026
31.12.06
8,990
(1,868)
21,548
28,670
As of 2007 the Company discloses credit card receivables as trade and credit card receivables (previously
disclosed in other accounts receivable, see also note 13). the comparative figures have been reclassified.
With the exception of the receivables, for which a bad debt allowance was booked, the other receivables can be
considered as current.
movement in Bad deBt allowanceS:
in thousands of Chf
Balance at beginning of the year
Additions (allowance recognized as expense)
use
reversal
Currency translation differences
Balance at the end of the year
Bad debt allowances mainly relate to a doubtful receivable in Brazil amounting to CHF 0.5 million. the doubtful
receivable of CHF 1.0 million from a customer in the Eurasia region has been finally written off.
F-28
2007
1,868
1,101
(1,456)
(449)
(79)
985
2006
1,264
938
(35)
(244)
(55)
1,868

in thousands of Chf
80 DuFry ANNuAl rEPOrt 2007
13 oTher AccounTs receivAble
Sales tax and other taxes
refund from suppliers and concessionaires
Accrued income
Prepayments
Guarantee deposits
receivables from related parties
loans receivable
Insurance refunds
Interest receivables
Other
ToTAl
Allowances
ToTAl
14 oTher finAnciAl AsseTs
financial aSSet claSSeS
in thousands of Chf
Non-derivative financial assets at fair
value without hedging relationship
Non-derivative financial assets
at amortized cost
loans and other accounts receivable
carried at amortized cost
15 invenTories
in thousands of Chf
Inventories gross
Inventory allowances
ToTAl
CurrEnt
non-CurrEnt
31.12.07
28,004
17,642
9,465
6,329
2,894
2,675
2,664
–
–
10,181
79,854
(641)
79,213
31.12.07
299,453
(8,010)
291,443
31.12.06
20,604
18,311
6,675
4,402
2,886
6,877
1,702
5,813
831
14,690
82,791
(811)
81,980
31.12.2006
284,302
(6,573)
277,729
the increase in inventories is due to the new operations in Moscow (CHF 7.0 million), Egypt (CHF 1.5 million) and
Algeria (CHF 1.7 million), as well as Flagship (CHF 2.0 million), and the Dominican republic (CHF 2.0 million).
32
–
10,639
1 the financial asset classes can be reconciled with note 25 “Financial instruments”.
–
125,077
110,987
F-29
31. 12. 07 31. 12. 06
total 1
32
125,077
121,626
CurrEnt
–
102,390
91,151
non-CurrEnt
23
–
7,654
total 1
23
102,390
98,805

16 properTy, plAnT And equipmenT
in thousands of Chf
at Cost
Balance as of 01.01.06
Acquisition of subsidiaries
Additions
Disposals
Currency translation differences
Balance as of 31.12.06
aCCumulatEd dEprECiation
and impairmEnt lossEs
Balance as of 01.01.06
Additions (note 5)
Disposals
Currency translation differences
Balance as of 31.12.06
at Cost
Balance as of 01.01.07
Additions
Disposals
reclassification within classes
reclassification to intangible assets
Currency translation differences
Balance as of 31.12.07
aCCumulatEd dEprECiation
Balance as of 01.01.07
Additions (note 5)
Disposals
reclassification within classes
reclassification to intangible assets
Currency translation differences
Balance as of 31.12.07
impairmEnt
Impairment (note 5)
Currency translation differences
Balance as of 31.12.07
Carrying amount as of 31.12.06
Carrying amount as of 31.12.07
in thousands of Chf
Fire insurance value
rEal EstatE
1,434
–
–
–
(168)
1,266
955
152
–
(185)
922
1,266
–
–
–
–
(32)
1,234
922
154
–
–
–
(22)
1,054
–
–
–
344
180
lEasEhold
improvEmEnts
57,670
10,551
24,166
(6,582)
(2,174)
83,631
32,057
12,097
(3,752)
(1,281)
39,121
83,631
23,468
(6,787)
10,893
–
(3,154)
108,051
39,121
11,821
(5,839)
(143)
–
(1,408)
43,552
1,324
(4)
1,320
44,510
63,179
furniturE
fixturE
72,242
10,573
21,278
(8,044)
(1,719)
94,330
46,756
9,682
(4,688)
(730)
51,020
94,330
14,276
(3,148)
(2,065)
–
(2,259)
101,134
51,020
13,510
(2,474)
256
–
(777)
61,535
56
–
56
43,310
39,543
DuFry ANNuAl rEPOrt 2007 81
ComputEr
hardwarE
36,140
1,690
4,372
(4,435)
(1,789)
35,978
24,385
3,581
(2,499)
(1,075)
24,392
35,978
6,448
(1,818)
225
(1,337)
(751)
38,745
24,392
5,170
(1,682)
(35)
(1,054)
(655)
26,136
212
(2)
210
11,586
12,399
vEhiClEs
4,769
315
912
(477)
(136)
5,383
2,982
647
(363)
(85)
3,181
5,383
1,418
(258)
271
–
(199)
6,615
3,181
906
(254)
(78)
–
(91)
3,664
–
–
–
2,202
2,951
31.12.07
173,362
work in
progrEss
1,855
–
5,265
–
(72)
7,048
–
–
–
–
–
7,048
13,360
(432)
(9,324)
–
(417)
10,235
–
–
–
–
–
–
–
–
–
–
7,048
10,235
total
174,110
23,129
55,993
(19,538)
(6,058)
227,636
107,135
26,159
(11,302)
(3,356)
118,636
227,636
58,970
(12,443)
–
(1,337)
(6,812)
266,014
118,636
31,561
(10,249)
–
(1,054)
(2,953)
135,941
1,592
(6)
1,586
109,000
128,487
1 As of 2007 work in progress, which comprises unfinished capital expenditure projects has been reclassified from other non-current assets
(note 18).
F-30
31.12.2006
176,699

17 inTAnGible AsseTs
in thousands of Chf
at Cost
Balance as of 01.01.06
Acquisition of subsidiaries
Additions
Disposals
Currency translation differences
Balance as of 31.12.06
aCCumulatEd amortization
and impairmEnt lossEs
Balance as of 01.01.06
Additions (note 5)
Disposals
Currency translation differences
Balance as of 31.12.06
at Cost
Balance as of 01.01.07
Additions
Disposals 2
reclassification from PP&E
Currency translation differences
Balance as of 31.12.07
aCCumulatEd amortization
Balance as of 01.01.07
Additions (note 5)
Disposals
reclassification from PP&E
Currency translation differences
Balance as of 31.12.07
impairmEnt
Additions (note 5)
Balance as of 31.12.07
Carrying amount as of 31.12.06
Carrying amount as of 31.12.07
goodwill ChangEs 2007
82 DuFry ANNuAl rEPOrt 2007
indEfinitE livEs
139,177
–
–
–
390
139,567
–
–
–
–
–
139,567
–
–
–
3,135
142,702
–
–
–
–
–
–
–
–
139,567
142,702
ConCEssion rights
finitE livEs
128,129
529,796
1,352
(521)
(26,129)
632,627
9,367
22,464
(333)
(3,141)
28,357
632,627
3,646
(3)
–
(41,421)
594,849
28,357
33,314
–
–
(2,807)
58,864
671
671
604,270
535,314
Brands
38,049
–
–
–
–
38,049
–
–
–
–
–
38,049
–
–
–
–
38,049
–
–
–
–
–
–
–
–
38,049
38,049
goodwill 1
124,062
327,678
–
(84,163)
(10,914)
356,663
–
–
–
–
–
356,663
–
(22,824)
–
(12,602)
321,237
–
–
–
–
–
–
–
–
356,663
321,237
othEr
2,439
543
10,185
(1,078)
844
12,933
118
1,423
(684)
487
1,344
12,933
6,039
(48)
1,337
(236)
20,025
1,344
3,052
(47)
1,054
(102)
5,301
–
–
11,589
14,724
1 goodwill related to puerto rico
On December 17, 2006, Dufry acquired 8 companies in the Caribbean. After the performance of the final purchase price allocation an
additional goodwill amounting to CHF 7.1 million has been recognized (refer to note 33).
total
431,856
858,017
11,537
(85,762)
(35,809)
1,179,839
9,485
23,887
(1,017)
(2,654)
29,701
1,179,839
9,685
(22,875)
1,337
(51,124)
1,116,862
29,701
36,366
(47)
1,054
(2,909)
64,165
671
671
1,150,138
1,052,026
2 a partial disposal of shares of dufry south america ltd through over-allotment option
On January 21, 2007 the over-allotment option of 6.4 % of the shares of Dufry South America ltd, Bermuda granted to the banks participating
in the Initial Public Offering was exercised; resulting in the disposal of goodwill amounting to CHF 22.8 million (refer to note 34).
F-31

in %
Europe
Africa
Eurasia
North America & Caribbean
South America
31.12.07
7.4 %
9.0 %
8.1 %
8.4 %
9.4 %
31.12.06
7.1 %
8.8 %
8.8 %
9.1 %
10.0 %
31.12.07
10.7 %
9.4 %
9.4 %
9.7 %
14.1 %
DuFry ANNuAl rEPOrt 2007 83
impaiRment teSt
Concession rights with indefinite useful lives, as well as brands and goodwill are subjected to impairments tests
each year. Concession rights with finite useful lives are tested for impairment whenever events or circumstances
indicate that the carrying amount may not be recoverable.
impairment test of goodwill
For the purpose of impairment testing, goodwill acquired through business combinations has been allocated to
the following five categories of cash generating units (CGu’s), which also reflect the reportable segments that are
expected to benefit from the synergies of the business combination:
in thousands of Chf
Europe
Africa
Eurasia
North America & Caribbean
South America
ToTAl cArryinG AmounT
post tax disCount ratEs
prE-tax disCount ratEs
31.12.06
12.1 %
9.4 %
10.6 %
10.9 %
13.9 %
31.12.07
15,915
31,026
24,835
80,973
168,488
321,237
growth ratEs
for Extra polating Cash flows
31.12.07
4.0 – 4.9 %
5.0 – 7.6 %
5.8 – 6.8 %
3.7 – 4.7 %
10.0 –12.0 %
31.12.06
15,915
31,026
24,835
81,508
203,379
356,663
the recoverable amounts of goodwill for each of the above group of CGu’s have been determined based on
value-in-use calculations. these calculations use cash flow projections on business plans approved by senior
management covering a five-year period, and a discount rate, which represents the weighted average cost of
capital (WACC) adjusted for regional specific risks.
Cash flows beyond that five-year period have been extrapolated using a steady growth rate that does not exceed
the long-term average growth rate for the respective markets in which these legal entities operate. the basis
used to determine the value assigned to the budgeted net sales, which determines the free cash flow used in the
discounted cash flow model, is the actual net sales achieved in the year 2007 and the budget 2008, increased
thereafter for expected market growth.
the following are the key assumptions used for determining the recoverable amounts for each of the above group
of CGu’s:
31.12.06
3.0 – 4.0 %
3.0 – 4.0 %
3.0 – 4.0 %
5.0 – 9.0 %
13.0 –23.0 %
Management believes that any reasonably possible change in the key assumptions on which the recoverable
amounts are based would not cause its carrying amount to exceed its recoverable amount, except for the goodwill
allocated to the region Europe, where an increase of 1 % of the interest rate, would let the carrying amount exceed
the fair value by CHF 8.0 million.
F-32

in thousands of Chf
Europe
Africa
Eurasia
North America & Caribbean
ToTAl cArryinG AmounT
84 DuFry ANNuAl rEPOrt 2007
impaiRment teSt of intangiBle aSSetS with indefinite uSeful liveS (conceSSion RightS and BRandS)
concession rights with indefinite useful lives
For the purpose of impairment testing, concession rights with indefinite useful lives are allocated to the respective
CGu ‘s to which they relate. the following table indicates the allocation of the concession rights with indefinite
useful lives to the group of CGu’s that are also the Company’s applicable reportable segments:
31.12.07
82,117
673
15,893
44,019
142,702
31.12.06
79,341
673
15,893
43,660
139,567
Each of the above reportable segments represents a group of CGu’s for the group, for example, region Europe
includes operating concessions in the European region, for which concession rights have been allocated and
valued by the Company. Each concession represents the cash generating unit for the company, for the purpose of
testing the concession rights with indefinite lives for impairment.
the recoverable amounts for each of the CGu’s have been determined based on value-in-use calculations. these
calculations use cash flow projections on business plans approved by senior management covering a five-year
period and a discount rate, which represents the weighted average cost of capital (WACC), adjusted for country
specific risks. Cash flows beyond that five-year period have been extrapolated using a steady growth rate that
does not exceed the long-term average growth rate for the respective markets in which these legal entities
operate . the basis used to determine the value assigned to the budgeted net sales, which determines the free
cash flow used in the discounted cash flow model, is the actual net sales achieved in the year immediately before
the budgeted year, increased for expected efficiency improvements.
key aSSumptionS uSed in value in uSe calculationS
the calculation of value-in-use for all five cash generation units is most sensitive to the following assumptions:
– Gross margin
– Discount rates
– Suppliers wholesale price inflation
– Concession fee levels
– Growth rate used to extrapolate cash flows beyond the budget period
Gross margins – Gross margins are based on average values estimated by the management in the approved
budget 2008 period. these values are maintained over the planning period. Depending on the specific market
these values can fluctuate by 2 % compared to the historical precedents.
Discount rates – Discount rates reflect management’s estimate of the risks specific to each unit. this is the
benchmark used by management to assess operating performance and to evaluate future investment proposals .
In determining appropriate discount rates for each unit, regard has been given to the yield of a ten-year government
bond at the beginning of the budgeted year.
Supplier’s wholesale price inflation – Estimates are obtained from global negotiations held with the main suppliers
for the products and countries for which products are sourced, as well as data relating to specific commodities
during the months previous to budget 2008.
F-33

DuFry ANNuAl rEPOrt 2007 85
Concession fee levels – these assumptions are important because, as well as using industry data for growth rates
(as noted below) management assesses how the unit’s position, relative to its competitors, might change over the
budget period. Management expects the Group’s achieved level to remain stable over the budget period.
Growth rate estimates – rates are based on published industry research (ACI’s international passenger’s growth
rates).
the following are the key assumptions used for determining the recoverable amounts for each of the above group
of CGu’s:
in %
Europe
Africa
Eurasia
North America & Caribbean
31.12.07
7.5 %
9.6 %
8.1 %
8.3 %
1 Depending on the country in which the concession operates.
31.12.06
7.3 %
8.4 %
8.9 %
8.9 %
Sensitivity to changes in assumptions
With regard to the assessment of value in use of these cash generation units, management believes that no
reasonably possible change in any of the above key assumptions would cause the carrying value of the concession
rights to materially exceed its recoverable amount. the actual recoverable amount for these units exceeds its
carrying amount by CHF 400.8 million (2006: CHF 206.4 million).
Brands
For the purpose of impairment testing, the Dufry brand is not allocated to any specific CGu’s or group of CGu’s but
is assessed at the Group level. Management believes that the synergies from the brands are corporate in nature
and to allocate the carrying value to CGu’s or group of CGu’s will not reflect economic reality.
the recoverable amount is determined based on the relief from royalty method that considers a steady royalty
stream of 0.3 % post tax of the net sales projected by the Company. the net sales projections cover a period of
five years with a year on year growth rate of 7.8 % in 2007, (2006:12.4 %). this growth rate does not exceed the
long-term average growth rate for Dufry Group. the discount rate of 7.5 % (2006: 6.5 %) represents the weighted
average cost of capital (WACC) at Group level.
18 oTher non-currenT AsseTs
in thousands of Chf
Guarantee deposits
Advances
loans receivable
Other
Capital advances 1
ToTAl
post tax disCount ratEs 1
prE-tax disCount ratEs 1
31.12.07
9.7 %
10.7 %
8.1 %
9.7 %
31.12.06
11.0 %
9.8 %
8.9 %
11.5 %
1 Capital advances are as of 2007 presented as work in progress under property, plant and equipment (note 16).
F-34
growth ratEs
for Extra polating Cash flows
31.12.07
3.7 – 3.7 %
5.0 – 7.6 %
5.8 – 6.8 %
7.0 – 7.2 %
31.12.07
8,339
6,309
2,300
32
–
16,980
31.12.06
2.0 – 4.0 %
2.0 – 4.0 %
2.0 – 4.0 %
5.0 – 9.0 %
31.12.06
6,209
5,823
1,445
23
–
13,500

86 DuFry ANNuAl rEPOrt 2007
19 deferred TAx AsseTs And liAbiliTies
temporary differences arise from the following positions:
in thousands of Chf
tax loss carry-forwards
Accounts receivables
Inventories
Other assets
Property, plant and equipment
Intangible assets
Accounts payables
Other liabilities 1
Provisions
Other tax credits
ToTAl
in thousands of Chf
Deferred tax assets
Deferred tax liabilities
ToTAl
31.12.07
10,160
(260)
(833)
647
4,001
(149,042)
3,391
(18,039)
(2,865)
899
(151,941)
31.12.07
20,986
(172,927)
(151,941)
2007
(5,492)
7,693
–
–
7,619
9,820
31.12.06
6,731
(956)
(2,610)
82
2,015
(158,708)
2,665
–
–
1,041
(149,740)
1 temporary differences associated with other non-current liabilities mainly comprise unrealized foreign exchange differences on long-term
loans in uSD.
Deferred tax balances are presented in the balance sheet as follows:
in thousands of Chf
Change in deferred tax asset
Change in deferred tax liabilities
First recognition based on purchase price allocation 1
First time recognition of deferred taxes
Effect of currency translation
ToTAl
31.12.06
15,494
(165,234)
(149,740)
temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been
recognized, amount to CHF 4.7 million (2006: CHF 7.2 million).
reconciliation of movements to the deferred taxes :
1 Deferred taxes resulting from the acquired companies in Puerto rico were restated (see note 33).
F-35
2006
(7,834)
122,474
(124,026)
(2,187)
3,114
(8,459)

20 finAnciAl debT
in thousands of Chf
Bank debt
loans payable
ToTAl
in thousands of Chf
uS Dollars account
Swiss Francs account
Euros account
Other currencies account
ToTAl
DuFry ANNuAl rEPOrt 2007 87
tax loSS caRRy-foRwaRdS
Certain subsidiaries incurred tax losses, which according to the local tax legislation gives rise to a tax credit
usable in future tax periods. However, the use of this tax benefit can be limited in time (expiration) and by the ability
of the respective subsidiary to generate enough taxable profits in future.
Deferred tax assets relating to tax loss carry-forwards and temporary differences are recognized only when it
is probable that such tax losses can be utilized in the future based on the budget 2008 approved by the board of
directors and thereafter, based on projections of the local management of the respective entity.
the unrecognized tax loss carry-forwards by expiry date are as follows:
in thousands of Chf
Expiring within 1 to 3 years
Expiring within 4 to 7 years
Expiring over 7 years
ToTAl
loans payable short-term amount to CHF 2.4 million (2006: CHF 6.8 million).
Bank deBt
Accrued bank transaction costs
ToTAl
Bank debt, short-term
Bank debt, long-term
ToTAl
F-36
31.12.07
860
4,024
48,875
53,759
31.12.07
493,056
2,442
495,498
31.12.07
320,350
134,626
37,626
6,015
498,617
(5,561)
493,056
13,649
479,407
493,056
31.12.06
1,334
6,998
26,980
35,312
31.12.06
606,955
8,884
615,839
31.12.06
519,146
65,140
28,170
784
613,240
(6,285)
606,955
21,725
585,230
606,955

in thousands of Chf
88 DuFry ANNuAl rEPOrt 2007
the Group negotiates and organizes centrally key credit facilities. For practical reasons minor credit lines exist
at local level. As of December 31, 2007, the Group’s main credit facilities were CHF 786 million (2006: CHF 650
million). At December 31, 2007, a total amount of CHF 498.6 million (2006: CHF 613.2 million) was drawn for cash,
of which CHF 479.4 million (2006: CHF 590.0 million) was used under the main credit facilities.
the main credit facilities are committed syndicated facilities, which are coordinated by ING N.V., london Branch,
as the agent, and expire in March 2011. the facilities consist of a term loan with a ratchet amortization schedule ,
and a revolving credit facility with a bullet repayment at the expiry of the contract. Interest in respect of any
borrowings under these credit facilities is at a floating rate (EurIBOr or lIBOr) plus spread. these facilities
contain customary financial covenants and conditions.
the weighted average interest rate for the drawn main credit facilities amounting to CHF 479.4 million was 5.7 %
(2006: CHF 590.0 million at 5.9 %) at the end of December 2007. Of these credit lines, CHF 320.4 million were drawn
in uSD with an average interest rate of 6.2 % (2006: CHF 508.5 million at 6.4 %), CHF 134.0 million in CHF with an
average interest of 3.2 % (2006: CHF 63.0 million at 2.6 %) and CHF 25.0 million in Eur with an average interest
rate of 4.8 % (2006: CHF 18.5 million at 4.6 %).
hedge of net inveStmentS in foReign opeRationS
An amount of uSD 282.4 million (2006: uSD 400 million) included in bank debt at December 31, 2007, has been
designated as a hedge of the net investments in Dufry America Investments SA and is being used to hedge the
Company’s exposure to foreign exchange risk. Any gain or loss on this hedging instrument is recognized in equity
in the foreign currency translation account.
21 oTher liAbiliTies
Concession fee payables
Personnel payables 1
Other service related vendors
Sales tax and other taxes
Accrued liabilities
Accruals related to special projects
Payables for capital expenditure
Payables for dividends
Purchase consideration
Other
ToTAl
1 the CHF 3.8 million for labor disputes in Brazil were reclassified to provisions (see note 23).
22 oTher finAnciAl liAbiliTies
in thousands of Chf
finanCial liaBilitiEs mEasurEd at fair valuE
Purchase consideration, without hedging relationship
F-37
31.12.07
57,060
33,104
18,635
15,091
12,861
4,706
4,970
4,977
1,136
5,688
158,228
31.12.07
6,208
31.12.06
46,946
23,966
19,368
6,629
11,547
17,010
3,890
–
15,366
4,688
149,410
31.12.06
6,107

23 provisions
in thousands of Chf
Balance as of 01.01.06
Increased 1
utilized
released to the income statement
reclassifications 2
Currency effect
Balance as of 31.12.06
Increased
utilized
released to the income statement
Currency effect
Balance as of 31.12.07
law suits
and dutiEs
1,271
3,143
(279)
(583)
–
(19)
3,533
874
(293)
(322)
(227)
3,565
disputE on
ContraCts
5,197
221
(1,395)
(3,503)
DuFry ANNuAl rEPOrt 2007 89
short-tErm
provision
Management believes that its total provisions are adequate based upon currently available information. However,
given the inherent difficulties in estimating liabilities in the below described areas, it cannot be guaranteed, that
additional or lesser costs will be incurred beyond or below the amounts provisioned.
law SuitS and dutieS
the provision covers uncertainties related to law suits in respect of taxes and duties. the subsidiary in tunisia
increased its provision by CHF 0.6 million. Dufry Aruba is having a tax claim amounting to CHF 0.2 million coming
from previous years. Dufry Algeria used the provision amounting to CHF 0.3 million for a dispute of sales taxes.
diSpute on contRactS
the landlord of our operation in Houston, uSA is claiming back again the concession fees reduction obtained after
the events of September 11, 2001 in the united States. Management has assessed the situation and provided for
that.
laBoR diSputeS
the long-term provision of CHF 3.8 million relates to claims in respect to the termination of labor contracts in
Brazil. Based on the uncertainties of this obligation, the amount in 2006 was reclassified from other liabilities.
cloSe-down
the provision covers costs expected to be incurred to close-down shops. Based on the economical and political
development in the Ivory Coast, the management decided to reverse the remaining provision of CHF 0.5 million.
the new increase of CHF 0.2 million relates to the closure costs in Belarus.
–
(88)
432
1,840
–
(105)
(95)
2,072
laBor
disputEs
–
–
–
–
3,770
–
3,770
470
(114)
(72)
(227)
3,827
ClosEdown
3,181
–
(1,358)
(1,400)
–
36
459
165
–
(470)
11
165
othEr
964
4,942
(32)
(572)
–
(9)
5,293
251
–
(380)
(310)
4,854
total
10,613
8,306
(3,064)
(6,058)
3,770
(80)
13,487
3,600
(407)
(1,349)
(848)
14,483
1 An increase of the provision for contingent liabilities of CHF 7.7 million resulted from the definitive assessment of the purchase price
allocation in connection with the acquisition of the companies in Puerto rico (see note 17 and 33).
2 the CHF 3.8 million for labor disputes in Brazil were reclassified from other liabilities (see note 21).
F-38
10,613
8,306
(3,064)
(6,058)
–
(80)
9,717
3,600
(407)
(1,349)
(620)
10,941

Discount rates
Expected return on plan assets
Future salary increases
Future pension increases
Average retirement age (in years)
90 DuFry ANNuAl rEPOrt 2007
24 posT-employmenT benefiT obliGATions
the personnel of Dufry Group are insured against the risk of old age and disablement in accordance with the local
laws and regulations. A description of the significant retirement benefit plans is as follows:
SwitzeRland
the overall expected rate of return on assets is determined based on the market prices prevailing on that date,
applicable to the period over which the obligation is to be settled.
the principal assumptions for the actuarial computation are as follows:
Dufry has a defined benefit pension plan based on the actual salary of the employee, covering substantially all of
its employees in Switzerland, which requires contributions to be made to a separate legal entity, the administrative
fund. the pension fund is a separate entity from the Dufry Group and does not have any assets related to the
Group.
the following tables summarize the components of net benefit expenses recognized in the income statement and
the funded status and amounts recognized in the balance sheet for the plan:
the net pension costs developed as follows:
net penSion coStS
in thousands of Chf
Current service costs
Interest costs
Expected return on plan assets
periodic pension costs
Employees’ contribution
net pension costs
Employer’s contribution
2007
3.50 %
4.25 %
1.50 %
1.00 %
64
2007
1,687
549
(797)
1,439
(671)
768
(1,065)
the total of the pension costs of the Group is included in personnel expenses (retirement benefits). the actual
return of plan assets is CHF 0.3 million (2006: CHF 0.6 million).
Dufry expects to contribute CHF 1.3 million to its defined benefit pension plans in 2008.
F-39
2006
3.00 %
4.25 %
1.50 %
1.00 %
64
2006
1,259
482
(725)
1,016
(574)
442
(893)

funded StatuS
in thousands of Chf
Fair value of plan assets as of January 1
Expected return
Contribution by employer
Contribution by employees
Benefits paid
Expected fair value of plan assets as of december 31
Actuarial losses
fair value of plan assets as of december 31
Defined benefit obligation (PBO) as of January 1
Current service costs
Interest costs
Benefits paid
Expected defined benefit obligation as of december 31
Actuarial (gain) losses on obligation
defined benefit obligation (pBo) as of december 31
funded status
less unrecognized actuarial gain
net asset as of december 31
DuFry ANNuAl rEPOrt 2007 91
Reconciliation to the Balance Sheet
the movement in the pension liability is recognized in the balance sheet as follows:
in thousands of Chf
Net asset (net liability) as of January 1
Net periodic pension costs (NPPC)
Contributions paid
net asset as of december 31
2007
18,749
797
1,065
671
(1,543)
19,739
(519)
19,220
18,292
1,687
549
(1,543)
18,985
(639)
18,346
874
279
595
2006
17,048
725
893
574
(335)
18,905
(156)
18,749
16,069
1,259
482
(335)
17,475
817
18,292
the net asset as of December 31, 2007 amounting to CHF 0.6 million (2006: 0.3 million) is reflected in other
accounts receivable.
F-40
2007
298
(1,439)
1,736
595
457
159
298
2006
(153)
(1,016)
1,467
298

in thousands of Chf
Defined benefit obligation (PBO)
Plan assets
surplus
92 DuFry ANNuAl rEPOrt 2007
Amounts for the current and previous periods are as follows:
Experience adjustments on plan liabilities
Experience adjustments on plan assets
in %
Shares
Obligations
rented properties
Other
ToTAl
2007
18,346
19,220
874
(639)
(519)
2006
18,292
the major categories of plan assets as percentages of the fair value of the total plan assets are as follows:
italy
In Italy, an unfunded defined benefit plan exists. the social pension contributions owed by the employer are
based on the number of years the respective employee worked with the respective Italian subsidiaries. the
amount accrued as of December 31, 2007 amounted to CHF 9.3 million (2006: CHF 9.7 million). the benefits for the
insured Italian employees have been valued in 2007 using an independent actuarial valuation, based on a discount
rate of 4.0 % (2006: 4.0 %), an expected increase in salary of 3.0 % (2006: 3.0 %) and an inflation rate of 1.5 %
(2006: 1.5 %).
otheR countRieS
Further smaller pension plans also exist in other countries. For these plans, a total amount of CHF 0.8 million was
accrued as of December 31, 2007 (2006: CHF 0.8 million).
poSt-employment Benefit oBligationS
in thousands of Chf
Italy
Other countries
ToTAl
F-41
2007
27 %
45 %
23 %
5 %
100 %
18,749
457
817
(156)
2006
26 %
45 %
24 %
5 %
100 %
2007
9,283
840
10,123
2005
16,069
17,048
979
479
736
2005
24 %
4 4 %
24 %
8 %
100 %
2006
9,704
808
10,512

25 finAnciAl insTrumenTs
DuFry ANNuAl rEPOrt 2007 93
financial RiSk management oBJectiveS
Dufry’s worldwide activities are affected by changes in foreign exchange rates and interest rates. to optimize the
allocation of the financial resources across the Group, as well as to secure an optimal return for its shareholders,
Group treasury coordinates access to domestic and international financial markets, monitors and manages the
financial risks relating to the operations of the Group through internal risk reports which analyze exposures by
degree and magnitude of risks. these risks include market risk, credit risk, liquidity risk and cash flow interest
rate risk. the Group seeks to minimize the effects of these risks by using derivative financial instruments to hedge
these risk exposures. the Group does not enter into or trade financial instruments, including derivative financial
instruments, for speculative purposes.
maRket RiSk
Dufry is exposed to market risk mainly in foreign currency exchange and interest rates. As part of the Group’s risk
management program, Group treasury may enter into a variety of derivative financial instruments with various
counterparties, principally financial institutions with investment grade credit ratings. the Group treasury’s
objective is to minimize cost and to reduce fluctuations in cash flows associated with changes in interest rates
and foreign currency rates. the Group evaluates the market risks before entering any financial transaction.
foReign cuRRency RiSk management
Foreign exchange rate fluctuations may create unwanted and unpredictable earnings and cash flow volatilities .
Although the group companies are located in a large number of countries, sales and supplies are mostly
recognized in one of the following hard currencies (Eur, uSD or CHF). In addition, the foreign currency exposure
is partly naturally hedged by purchasing of goods in corresponding currencies. Intercompany supply and financing
are carried out in the functional currency of the respective subsidiary.
inteReSt Rate RiSk management
Dufry’s interest rate risk exposure is mainly related to debt obligations like short and mid term bank loans. the
risk is managed by Group treasury by maintaining an appropriate mix between fixed and floating rate borrowings.
to manage this mix, the Group may enter into interest rate swap agreements. Hedging activities are evaluated
regularly to align these with the interest rate view, in order, to ensure that optimal hedging strategies are applied,
by either optimizing the balance sheet structure or limiting the interest expense risk exposure through different
interest rate duration periods.
the Group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk
management section of this note.
cRedit RiSk management
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss
to the Group.
the Group has no significant concentrations of credit risk. Most of the sales are retail sales and made against
cash or internationally recognized credit cards or bank debit cards. It also has policies in place to guarantee that
other sales of products and services are made to customers with an appropriate credit history or that the credit
risk is insured by a specialized indemnity insurer.
the credit risk on liquid funds and derivative financial instruments is limited because the counterparties are
financial institutions with high credit-ratings. the group does not expect any losses from non-performance by
these counterparties and does not have any significant grouping of exposures to financial sector or country risk.
F-42

94 DuFry ANNuAl rEPOrt 2007
capital RiSk management
the capital structure of the Group consists of debt, cash and cash equivalents and equity attributable to equity
holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in notes. Group
treasury reviews the capital structure regularly and considers the cost of capital and the risk associated with
each class of capital.
liquidity RiSk management
liquidity risk is defined as the risk that the Group is not able to meet its financial liabilities on time or at a
reasonable price. Beyond effective working capital and cash management, Dufry mitigates liquidity risk by
arranged borrowing facilities with highly rated financial institutions. Group treasury is responsible for liquidity,
funding as well as settlement management. Dufry manages its liquidity risk on a consolidated basis based on
business needs, tax and capital regulatory considerations.
the main credit facility in place is a CHF 786 million syndicated multi-currency credit facility expiring in March
2011 provided by a syndicate of international banks (see note 20).
categoRieS of financial inStRumentS
31.12.07
in thousands of Chf
finanCial assEts
Cash and cash equivalents
trade and credit card receivables, net
Other accounts receivable
Other non-current assets
ToTAl
in thousands of Chf
finanCial liaBilitiEs
trade payables
Financial debt, short-term
Other liabilities
Financial debt, long-term
Other non-current liabilities
ToTAl
Cash and Cash
EquivalEnts
125,077
–
–
–
125,077
finanCial
Borrowings
at amortizEd
Costs
loans and
othEr aCCounts
rECEivaBlE
–
52,026
58,961
10,639
121,626
othEr
finanCial
liaBilitiEs at
amortizEd Cost
165,599
availaBlE
for salE
–
–
–
32
32
non-finanCial
assEts 1
–
–
20,252
6,309
non-finanCial
liaBilitiEs 1
1 Non-financial assets and liabilities integrate prepaid expenses or income, which will not generate a cash outflow or inflow.
–
16,016
–
479,482
–
495,498
F-43
–
157,270
–
2,785
325,654
fair valuE
through profit
and loss
–
–
–
–
6,208
6,208
–
–
958
–
–
total
125,077
52,026
79,213
16,980
total
165,599
16,016
158,228
479,482
8,993

categoRieS of financial inStRumentS
31.12.06
in thousands of Chf
finanCial assEts
Cash and cash equivalents
trade and credit card receivables, net
Other accounts receivable
Other non-current assets
ToTAl
in thousands of Chf
finanCial liaBilitiEs
trade payables
Financial debt, short-term
Other liabilities
Financial debt, long-term
Other non-current liabilities
ToTAl
DuFry ANNuAl rEPOrt 2007 95
Remaining matuRitieS foR non-deRivative financial liaBilitieS
the following tables provide detail on the Group’s remaining contractual maturity for its non-derivative financial
liabilities. the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on
the earliest date on which the Group can be required to pay. the tables only include principal cash flows.
in thousands of Chf
2007
Non interest bearing
Variable interest rate instruments
Fixed interest rate instruments
2006
Non interest bearing
Variable interest rate instruments
Fixed interest rate instruments
Cash and Cash
EquivalEnts
102,390
–
–
–
102,390
finanCial
Borrowings
at amortizEd
Costs
wEightEd
avEragE
intErEst ratE
–
5.7 %
9.1 %
–
5.9 %
9.1 %
loans and
othEr aCCounts
rECEivaBlE
1–6 months
322,070
13,215
2,442
307,364
20,110
8,884
–
28,670
62,481
7,654
98,805
6-12 months
1,821
434
1,136
63
1,615
–
availaBlE
for salE
–
–
–
23
23
1–2 yEars
76
–
–
72
–
1,220
non-finanCial
assEts 1
–
–
19,499
5,823
non-finanCial
liaBilitiEs 1
1 Non-financial assets and liabilities integrate prepaid expenses or income, which will not generate a cash outflow or inflow.
–
28,546
–
587,293
–
615,839
othEr
finanCial
liaBilitiEs at
amortizEd Cost
F-44
157,300
–
148,859
–
1,340
307,499
fair valuE
through profit
and loss
–
–
–
–
6,107
6,107
–
–
551
–
–
morE than
2 yEars
1,687
479,407
6,816
–
585,230
7,320
total
102,390
28,670
81,980
13,500
total
157,300
28,546
149,410
587,293
7,447
total
325,654
493,056
10,394
307,499
606,955
17,424

96 DuFry ANNuAl rEPOrt 2007
financial liaBilitieS at faiR value
difference between carrying amount and maturity amount
in thousands of Chf
Financial liabilities at fair value
Amount payable at maturity
the fair values did not change due to changes in credit risk during the financial year.
financial inStRumentS
the Group’s activities expose it primarily to the financial risks resulting from fluctuations in foreign currency
exchange and interest rates (see below). the Group enters into a variety of derivative financial instruments to
manage its exposure to foreign currency risk, including forward foreign exchange contracts, currency swaps and
over the counter plain vanilla options.
there has been no change to the Group’s exposure to market risks or the manner in which it manages and
measures the risk.
there were no derivative financial instruments at both reporting dates.
foReign cuRRency SenSitivity
Among various methodologies to analyze and manage risk, Dufry implemented a system based on ‘sensitivity
analyses’. this tool enables Group treasury to identify the risk position of the entities. Sensitivity analysis provides
an approximate quantification of the exposure in the event that certain specified parameters were to be met
under a specific set of assumptions.
in thousands of Chf
31.12.07
Assets
liabilities
neT exposure
31.12.06
Assets
liabilities
neT exposure
usd
132,118
476,789
(344,671)
156,424
573,926
(417,502)
Euro
140,898
131,324
9,574
131,048
100,254
30,794
Chf
1,332
3,254
(1,922)
128
3,697
(3,569)
Brl
15,333
41,845
(26,512)
14,473
31,277
(16,804)
31.12.07
6,208
7,952
othEr
1,155,915
1,366,459
(210,544)
1,132,129
1,405,076
(272,947)
31.12.06
6,107
8,540
total
1,445,596
2,019,671
(574,075)
1,434,202
2,114,230
(680,028)
the sensitivity analysis includes all financial assets and liabilities irrespective of whether the positions are third
party or intercompany. Dufry has considered some intercompany long-term loans, which are not likely to be
settled in a foreseeable future as being part of the net investment in such subsidiary. In compliance with the
hedge accounting rules (IAS 21 paragraph 15) the related exchange differences are recorded directly in equity as
a hedging reserve.
the foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure of
the Group entities. the values and risk disclosed here are the hedged and unhedged positions multiplied by an
assumed 5 % appreciation of the CHF against all other currencies.
F-45

in thousands of Chf
Net earnings – profit (losses)
Hedging reserve – profit
2007
2,570
14,664
DuFry ANNuAl rEPOrt 2007 97
A positive number indicates a profit in the income statement or an increase in the hedging reserve where the CHF
strengthens against the relevant currency.
usd impaCt Eur impaCt
In management’s opinion, the sensitivity analysis may be unrepresentative of the inherent foreign exchange risk
as the year-end exposure does not reflect the exact exposure during the year.
foRwaRd foReign exchange contRactS at faiR value
As management considers the Company to be largely naturally hedged it is the policy of the Group to enter into
forward foreign exchange contracts to manage the exposure if needed. there were no outstanding forward foreign
currency contracts at reporting date. Consequently, there were no unrealized losses under forward foreign
exchange contracts at the balance sheet date.
inteReSt Rate SenSitivity
the sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives
and non-derivative instruments at the balance sheet date. the risk estimates provided here in assume a
simultaneous , parallel shift of 100 basis points of the interest rate yield curve in all relevant currencies.
If interest rates had been 100 basis points higher and all other variables were held constant, the Group’s
interest expenses for the year ended December 31, 2007 would increase by CHF 5.6 million (2006: increase by
CHF 6.5 million).
maximum cRedit RiSk
the carrying amount of financial assets recorded in the financial statements, after deduction of any allowances
for losses, represents the Group’s maximum exposure to credit risk.
liquidity and inteReSt RiSk taBleS
financial assets (non-derivative)
the following table depicts the Group’s expected maturity for its non-derivative financial assets. the tables below
have been drawn up based on the undiscounted contractual maturities of the financial assets (excluding interest
that will be earned on those assets) except in cases the Group anticipates that the cash flow will occur in a different
period.
in thousands of Chf
2007
Non interest bearing
Variable interest rate instruments
Fixed interest rate instruments
2006
Non interest bearing
Variable interest rate instruments
Fixed interest rate instruments
wEightEd
avEragE intErEst
ratE
–
4.0 %
8.8 %
–
3.0 %
9.3 %
1–6 months
108,190
120,069
410
93,666
94,148
1,389
F-46
2006
(134)
21,009
6-12 months
3,026
508
316
1,097
531
280
1–2 yEars
1,067
–
509
2,513
–
510
2007
479
–
morE than
2 yEars
2,510
8,339
1,791
315
6,209
569
2006
1,540
–
total
114,793
128,916
3,026
97,591
100,888
2,748

98 DuFry ANNuAl rEPOrt 2007
faiR value of financial inStRumentS
the fair values of financial assets and financial liabilities (excluding derivative instruments) are determined in
accordance with generally accepted pricing models based on discounted cash flow analysis using prices from
publicly available current market transactions.
the Group considers that the carrying amounts of financial assets and financial liabilities recorded at amortized
cost in the financial statements approximate their fair values.
26 conTinGenT liAbiliTies
contingent liaBilitieS
the Group enters into long-term agreements with airport authorities, seaport authorities and other landlords, to
guarantee the use of concessions rights. Most of the concessionaires require a minimum annual guarantee based
on sales, passengers or other indicators of operational activity. In case of early termination Dufry’s subsidiaries
can be required to indemnify the port authorities for lost earnings. the Group or their subsidiaries have granted
these warranties regarding the performance of certain long-term contracts directly or through third parties. At
December 31, 2007 and December 31, 2006, no request for fulfill of such contingent liabilities were pending.
the Group is contingently liable for a remaining amount of CHF 2.7 million (2006: CHF 2.9 million) in relation to the
purchase of Emerald Distributors ltd by Duty Free Caribbean (Holdings) ltd. under the terms of the purchase
agreement, the purchase price was dependent on the consolidated results of Duty Free Caribbean Emeralds
(St. lucia) ltd maintaining a certain level of earnings before interest, depreciation and amortization but after
taxes. On attaining the level of earnings in any one year as per the agreement, an amount of CHF 1.4 million
(uSD 1.2 million) is payable to the vendor that year. the remaining two payments could become due in any year
up to March 31, 2010.
27 relATed pArTies And relATed pArTy TrAnsAcTions
the substantial relationships for the Group are disclosed as follows:
Advent International Corp. as well as entities under their control participated in the common acquisition of
our business in Brazil (incl. Eurotrade) at the end of March 2006 (see note 34). In December 2006, they sold
their participation in Dufry South America ltd on the Initial Public Offering in the Brazilian and luxembourg
stock exchanges . their part in the transaction costs related to this Initial Public Offering presents at the end of
December 31, 2007 a balance receivable of CHF 2.7 million (2006: CHF 6.5 million).
Dufry Mexico SA de CV operates shops at Mexico City’s Benito Juarez Airport under agreements with Inmobiliaria
Fumisa, SA de CV. Advent International Corp., the entity managing the funds that controls the Company’s largest
shareholder, also manages other funds that controls Inmobiliaria Fumisa, SA de CV. In addition, three of the
members of the Company’s Board of Directors are also directors of Inmobiliaria Fumisa, SA de CV. According
to the concession agreements, the Company is required to compensate Inmobiliaria Fumisa SA de CV through
monthly fee payments for the use of the shops at the Mexico City Airport. In 2007, total rent amounted to
CHF 22.8 million (2006: CHF 20.1 million).
F-47

DuFry ANNuAl rEPOrt 2007 99
In addition to his employment relationship with the Group, Mr. Dante Marro, Chief Operating Officer for region
Europe and member of the Group Executive Committee, acting through Gestione Spazi Attrezzati Srl („GSAS“),
was granted rights of usufruct over 10 % of the Company‘s shareholding in its wholly owned subsidiary Dufry Shop
Finance limited Srl in 2002. the rights of usufruct granted to GSAS, which will expire at the latest on December
31, 2020, permit it to enjoy the benefits of share ownership, including the receipt of dividends, even though the
shares remain vested in a subsidiary. upon expiration of the rights of usufruct, provided that the total profits of the
aforementioned company shall not have been declared as dividends, GSAS shall be entitled to receive 10 %, of all
withheld profits accumulated as reserves on the balance sheet of Dufry Shop Finance limited Srl as at December
31, 2020. In 2007, the amount of usufruct paid amounted to CHF 0.5 million (2006: CHF 0.2 million).
In addition to his employment relationship with the Group, Mr. José González, Chief Operating Officer for region
North America & Caribbean and member of the Group Executive Committee, owns 26.3 % of the share capital of
the subsidiary Puerto libre International SA (‘PlISA’). PlISA operates duty free shops at the international airport
of Managua as well as three border shops in Nicaragua.
Pevazi Inc. supplied goods equivalent to the amount of CHF 0.2 million (2006: CHF 0.2 million). Pevazi Inc. is related
to a member of the Board of Directors of Dufry ltd.
Except for Mr Xavier Bouton who received CHF 0.3 million (2006: CHF 0.3 million) for strategic consulting services
provided to the Company during the year 2007, there are no additional fees or remunerations billed to Dufry ltd or
one of its subsidiaries by members of the Board of Directors, the Group Executive Committee or parties closely
linked to such persons as defined in the SWX directive.
the legally required disclosure of compensation and participations is contained in the financial statements of
Dufry ltd on page 116.
Compensations expensed to members of the Group Executive Committee were made as follows:
in thousands of Chf
Short-term employee benefits
Post-employment pension and other benefits
Short-term employee benefits include salaries and variable remuneration as well as the expenses related
to the restricted Stock unit plan (rSu) for the members of the Group Executive Committee in the amount of
CHF 3.4 million (2006: CHF 1.5 million).
28 principAl foreiGn exchAnGe rATes Applied for vAluATion And TrAnslATion
1 uSD
1 Eur
avEragE ratEs
2007 31.12.07
2006
31.12.06
1.2001
1.6431
F-48
Closing ratEs
1.1360
1.6565
2007
9,345
459
avEragE ratEs
1.2536
1.5732
2006
9,676
549
Closing ratEs
1.2200
1.6100

29 seGmenT informATion
100 DuFry ANNuAl rEPOrt 2007
the Group risks and returns are predominantly affected by the fact that it operates in different countries.
therefore , the Group reports segment information in its financial statements in the same way as it does internally
to senior management, using geographical segments.
the geographical segments reported are broken down as follows: Europe (incl. HQ), Africa, Eurasia, North
America & Caribbean and South America.
in thousands of Chf
yEars EndEd dECEmBEr 31
Net sales – third parties
Net sales – intercompanies
net sales
Advertising income
turnover
Earnings before interest and taxes (EBit)
Interest, net
Foreign exchange gain, net
Income taxes
neT eArninGs
Equity holders of the parent
Minority interest
Segment assets
unallocated corporate assets
ToTAl AsseTs
Segment liabilities
unallocated corporate liabilities
ToTAl liAbiliTies
Capital expenditure paid
Depreciation and amortization
Impairment
Non-cash expenses / (income) other
than depreciation
Number of full time equivalents (as of Dec 31)
2007
408,697
121,190
529,887
16,819
546,706
30,444
323,771
145,988
23,747
11,502
–
(1,093)
F-49
1,001
EuropE (inCl. hq) afriCa Eurasia
2006
370,490
61,566
432,056
13,783
445,839
83,168
386,277
124,571
20,166
8,898
–
5,896
983
2007
183,538
–
183,538
20
183,558
17,807
70,901
47,385
4,958
7,403
–
1,169
875
2006
146,389
–
146,389
94
146,483
14,250
83,768
43,178
7,082
7,083
–
4,639
734
2007
226,560
–
226,560
2,259
228,819
15,112
107,509
40,309
12,981
5,999
2,263
347
867
2006
187,220
–
187,220
1,792
189,012
17,458
81,506
31,615
6,209
4,288
–
1,273
787

DuFry ANNuAl rEPOrt 2007 101
transfer prices between segments are set on an arm’s length basis. Segment sales, segment expenses and
segment income include transfers between segments. those transfers are eliminated in consolidation.
north amEriCa & CariBBEan south amEriCa Eliminations total
2007
469,127
10,094
479,221
8,373
487,594
33,113
456,060
80,718
14,435
19,723
–
9,857
2,469
2006
328,029
7,739
335,768
4,911
340,679
14,207
525,832
68,893
18,110
10,962
–
3,151
2,345
2007
597,479
–
597,479
17,384
614,863
95,843
519,679
114,733
11,429
23,300
–
3,451
1,882
2006
371,630
–
371,630
11,992
383,622
40,801
504,767
118,194
6,808
18,815
–
2,160
1,677
2007
–
(131,284)
(131.284)
–
(131,284)
–
(58,928)
(58,928)
–
–
–
–
–
2006
–
(69,305)
(69,305)
(35)
(69,340)
(682)
(196,974)
(57,516)
F-50
–
–
–
–
–
2007
1,885,401
–
1,885,401
44,855
1,930,256
192,319
36,229
(8,295)
38,345
126,040
74,970
51,070
1,418,992
357,422
1,776,414
370,205
668,365
1,038,570
67,550
67,927
2,263
13,731
7,094
2006
1,403,758
–
1,403,758
32,537
1,436,295
169,202
33,678
(2,939)
13 , 8 8 3
124,580
107,714
16,866
1,385,176
397,370
1,782,546
328,935
798,465
1,127,400
58,375
50,046
–
17,119
6,526

30 eArninGs per shAre
in thousands of Chf / quantity
102 DuFry ANNuAl rEPOrt 2007
BaSic
Basic earnings per share are calculated by dividing the net earnings attributable to equity holders of the parent
by the weighted average number of shares outstanding during the year.
Net earnings attributable to equity holders of the parent
Weighted average number of ordinary shares outstanding
Basic earnings per share in CHF
2007
74,970
14,018
5.35
2006
107,714
diluted
Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders
of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted
average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary
shares into ordinary shares.
in thousands of Chf / quantity
Net earnings attributable to equity holders of the parent
Weighted average number of ordinary shares outstanding adjusted
for the effect of dilution
Diluted earnings per share in CHF
Weighted average number of ordinary shares:
in thousands
Outstanding shares
less treasury shares
used for calculation of basic earnings per share
Effect of dilution:
Share options
used for calculation of earning per share adjusted for the effect of dilution
31 purchAse of properTy, plAnT And equipmenT
in thousands of Chf
Payables for capital expenditure at the beginning of the year
Additions of property, plant and equipment (see note 16)
Payables for capital expenditure at the end of the year
translation differences
purchase of property, plant and equipment
2007
74,970
14,223
5.27
2007
3,890
58,970
(4,970)
(25)
57,865
14,063
7.66
2006
107,714
14,163
7.61
2006
–
55,993
(3,890)
–
52,103
the comparative figures were restated to take into account the payables for capital expenditure at the end of 2006.
F-51
2007
14,062.5
44.5
14,018.0
205.0
14,223.0
2006
14,062.5
–
14,062.5
100.0
14,162.5
On January 1, 2008, 100,000 treasury shares have been assigned to the beneficiaries of the share options (first
grant of the rSu, see note 36). there have been no other transactions involving ordinary shares or potential
ordinary shares between the reporting date and the date of completion of these financial statements.

32 number of reTAil shop concessions
DuFry ANNuAl rEPOrt 2007 103
Dufry companies enter into arrangements with airports, seaports, railway stations and other areas to operate
shops, which sell part or the total of the product-range mentioned in note 1. Most of the concession providers are
public or semi-public owned companies.
Such shop concession arrangements determines that the concession providers transfer the right to Dufry shops
to sell a predefined assortment of products to a traveling public, for the period of the concession.
the arrangements typically define:
– the duration
– the nature of remuneration
– the assortment of products to be sold
– the location
they may comprise one or several shops and are awarded in a public tender or in a negotiated deal.
the depreciation of the tangible assets in such operations is done over the useful life or the duration of the
arrangements , whatever is shorter.
In such cases where the compensation is defined in form of a guaranteed minimum, such arrangement may
fulfill the definition of an onerous contract. In such instance, the discounted net future cash flow is assessed and
provisioned. At present, no concession agreements are provided for.
Dufry Group operates 448 retail shops in 39 countries at year-end. they operate under the following concession
schemes currently and in the following years including extension:
total number of shops
with concession agreements existing in :
of which fixed fees and / or proportional fees 1
of which proportional fees to sales
of which fixed fees
2007
448
268
105
75
1 there are two possible combinations: a) the agreement includes a fixed fee and additionally proportional fees to sales, or b) the higher of a
fixed fee or proportional fee.
2008
421
251
105
65
F-52
2009
382
220
103
59
2010
327
167
103
57
2011
312
153
103
56
2012+
274
132
103
39

33 new operATions
104 DuFry ANNuAl rEPOrt 2007
developmentS 2007
During the first half of 2007, Dufry started new operations in China (Hong Kong) and in Egypt (Sharm-el-Sheikh).
On March 9, 2007, a joint venture company was founded in Prague with a share capital of CZK 200,000. Dufry
contributed 51 % of the share capital of Dufry CE s.r.o amounting to CHF 6,000. the company is still not
operational .
the minority shareholder of Duty Free Caribbean (Holdings) ltd did not exercise his option to sell to Dufry Group
up to 20 % of the share capital of the company during the period ended on December 31, 2007 (see Acquisitions
2006 below). In consequence, the potential liability of CHF 12.8 million presented as of December 31, 2006, was
de-recognized as of December 31, 2007.
acquiSitionS 2006
1. acquisition of operations in Brazil
At the end of March 2006, the Group acquired 80 % ownership interest in Brasif Duty Free Shop ltd and subsidiaries
(‘Brasif’) in Brazil as well as Eurotrade ltd, in Cayman Islands (‘Eurotrade’). Brasif and its subsidiaries are
retail companies.
the fair value of the identifiable assets and liabilities of the acquired companies as at the date of acquisition and
the resulting goodwill were determined as follows:
in thousands of usd
Cash and cash equivalents
Other accounts receivable
Inventories
Other assets
Concession rights
Non-current assets
AsseTs
trade payables
Financial debt
Other accounts payable
Deferred tax liabilities
Minority interests
Equity
liAbiliTies And equiTy
Fair value of net assets
Dufry’s share in the net assets
Goodwill arising on acquisition
total acquisition costs
in thousands of Chf
Goodwill
F-53
fair valuE
6,266
24,573
37,749
408
284,505
19,956
373,457
31,255
2,812
20,721
96,555
(34)
222,148
373,457
222,148
177,718
231,378
409,096
fair valuE
297,873
Carrying valuE
6,266
24,573
37,749
408
1,121
19,354
89,471
31,255
2,812
20,721
–
(34)
34,717
89,471

DuFry ANNuAl rEPOrt 2007 105
the acquisition costs for Dufry of uSD 409.1 million comprised a cash payment of uSD 402.3 million and costs of
uSD 6.8 million directly attributable to the acquisition.
the total purchase price of uSD 500 million for 100 % ownership interest was financed through a structured bank
financing of uSD 400 million provided by the Dufry Group and a contribution of uSD 100 million provided by Dufry
South America Investment’s minority shareholder, the funds managed by Advent International Corp. As of April
1, 2006, Dufry obtained the control of these newly incorporated companies.
the structured bank financing shall also provide Dufry with additional means for further expansions and
growth.
cash outflow on acquisition:
in thousand of usd
Net cash acquired with the subsidiary
Cash paid
Acquisition costs
net cash outflow
in thousand of Chf
net cash outflow for the 80 % acquired
From the date of acquisition up to December 31, 2006, the acquired companies have contributed CHF 301 million
to the net sales of the Group and CHF 39 million to the operating profit of the Group. If the combination had taken
place at January 1, 2006, the acquired companies would have contributed CHF 387 million to the net sales of the
Group and CHF 43 million to the operating profit of the Group.
the goodwill of uSD 231.4 million is attributed to the expected synergies and other benefits from combining the
assets and activities of the acquired companies with those of the Group.
2. acquisition of operations in puerto Rico
On December 17, 2006, the Group acquired 100 % of the share capital of 8 Caribbean companies, namely Alliance
Duty Free, Inc, ABC Netherlands Inc, P&B Inc domiciled in Puerto rico, Perfume Palace Inc and the Alexis Corp.,
domiciled in St. thomas, DFI Aruba domiciled in Aruba, DFI Bonaire N.V. domiciled in Bonaire and lJB Cosmetics
N.V. domiciled in St. Maarten for a total consideration of uSD 157 million. the total purchase price was financed
through the proceeds of the Initial Public Offering of Dufry South America ltd.
the acquisition has been accounted for using the purchase method of accounting. the fair value of the identifiable
assets and liabilities of the acquired companies as at the date of acquisition and the resulting goodwill were finally
determined as follows:
F-54
2006
(6,266)
502,896
8,475
505,105
2006
518,752

in thousands of usd
Cash and cash equivalents
Other accounts receivable
Inventories
Other assets
Concession rights
Non-current assets
AsseTs
trade payables
Other accounts payable
Deferred tax liabilities
Equity
liAbiliTies And equiTy
Fair value of net assets
Goodwill arising on acquisition 1
ToTAl AcquisiTion cosTs
in thousands of Chf
Goodwill
106 DuFry ANNuAl rEPOrt 2007
the total acquisition costs of uSD 158 million comprised a cash payment of uSD 150 million in 2006, the
commitment to pay uSD 7.0 million to the former owner over the next seven years (which have been discounted at
11.25 % p.a.) and transaction costs of uSD 3.0 million attributed to this acquisition.
cash outflow on acquisition:
fair valuE
8,597
2,133
12,005
522
135,267
3,015
161,539
4,367
7,301
8,876
140,995
161,539
140,995
16,954
157,949
fair valuE
20,684
Carrying valuE
8,597
2,133
12,302
522
–
3,015
26,569
4,367
1,130
–
21,072
26,569
1 Compared with the preliminary assessment, the final purchase price allocation identified additional contingent liabilities of uSD 6.3 million
(equivalent to CHF 7.7 million) and adjusted the deferred taxes accordingly. In 2006, the goodwill arising on the acquisition was stated at
uSD 11.1 million.
in thousand of usd
Net cash acquired with the subsidiary
Cash paid
Acquisition costs
net cash outflow in usd
in thousand of Chf
net cash outflow
2006
(8,597)
150,000
3,018
144,421
2006
174,764
From the date of acquisition up to December 31, 2006, the acquired companies have contributed CHF 4.5 million
to the net sales of the Group and CHF 0.9 million to the operating profit of the Group. If the combination had taken
place at January 1, 2006, the acquired companies would have contributed CHF 103 million to the net sales of the
Group and CHF 20 million to the operating profit of the Group.
the goodwill of uSD 17.0 million is attributed to the expected synergies and other benefits from combining the
assets and activities of the acquired companies with those of the Group.
F-55

DuFry ANNuAl rEPOrt 2007 107
3. minority interest in duty free caribbean (holdings) ltd
As of February 2, 2006, Dufry acquired 4.6 % of the voting shares of Duty Free Caribbean (Holdings) ltd
(‘DFC’) for a price of uSD 5.5 million from the minority shareholders of DFC. Dufry also subscribed the sum of
uSD 13.0 million toward the issuance of additional shares of DFC. Both transactions resulted in Dufry’s ownership
interest to increase from 50 % at the beginning of the year to 60 % at December 31, 2006. the difference between
the book value of the additional interest acquired and the consideration, of CHF 9.1 million has been recognized
as goodwill .
the minority shareholder had an option up to December 31, 2007 to sell to the stock market 20% of the share
capital of Duty Free Caribbean (Holdings) ltdor, in the event that the company shall not be publicly traded on
December 31, 2007 had an option to sell to the Dufry Group up to 20% of the share capital of the company for a total
price based on a valuation of a multiple of earnings before interest, taxes, depreciation and amortization (EBItDA)
minus net interest bearing debt. Dufry Group has recognized CHF 12.8 million as other liability for the fair value
of this option in its consolidated balance sheet as of December 31, 2006.
4. minority interest in dufry Bolivia Sa
On December 4, 2006 Dufry acquired from Corporation DFSA, the minority interest holder of Dufry Bolivia SA
(formerly Weitnauer Bolivia SA), its remaining 40 % share for a price of uSD 0.5 million. Dufry South America ltd
is thereafter holding 100 % of Dufry Bolivia SA. the net cash outflow was only of uSD 0.3 million, since the rest
was compensated with advance payments done to Corporation DFSA in prior years.
34 disposAl of subsidiAries And oTher informATion
paRtial diSpoSal of ShaReS in dufRy South ameRica ltd thRough oveR-allotment option
On January 21, 2007 the over-allotment option of 4,129,567 shares of Dufry South America ltd, Bermuda granted
to the banks participating in the Initial Public Offering was exercised resulting in net proceeds of CHF 64.5 million.
As a result the Group’s ownership interest in DSA was reduced to 51.04 %. the Group recognized a gain of
CHF 18.3 million in its consolidated income statement for the year ended December 31, 2007.
diSpoSal of Bfc aiRpoRt StoReS llc
On February 28, 2007, Eurotrade ltd sold all of its shares in BFC Airport Stores for uSD 0.07 million. At the time
of the sale the net cash disposed amounted to uSD 0.07 million. the transaction generated a net loss on sale of
subsidiary of CHF 0.09 million.
diSpoSal of ShaReS in dufRy camBodia ltd
Dufry Group had 100 % ownership interest in Dufry Cambodia ltd. On June 30, 2007, Dufry International ltd
disposed 20 % of its ownership interest in Dufry Cambodia ltd for CHF 0.2 million. under the parent entity
extension method, the Group recognized a loss of CHF 0.4 million representing the difference between the net
proceeds received and Group’s share of identifiable net assets disposed, in its consolidated income statement for
the year ended December 31, 2007.
diSpoSalS 2006
1. disposal of duty free haifa ltd
On July 1, 2006, Dufry International ltd sold its 60 % shares in Duty Free Haifa ltd for CHF 0.7 million. At the time
of the sale the net cash disposed amounted to CHF 0.6 million. the transaction generated a net loss on sale of
subsidiary of CHF 0.5 million.
2. Reorganization of dufry South america investments Sa, flagship Retail Services inc and dufry Bolivia Sa
Dufry Group had 100 % ownership interest in Flagship retail Services Inc. (‘Flagship’) and 60 % of Dufry Bolivia SA.
In preparation for the Initial Public Offering in luxembourg and Brazil, Dufry set up a new company called Dufry
South America ltd, Bermuda (‘DSA’) with 80 % ownership interest.
F-56

108 DuFry ANNuAl rEPOrt 2007
At September 29, 2006, DSA entered into a subscription agreement with Dufry, whereby Dufry subscribed to
2,249,176 new common shares of DSA having a par value of uSD 0.012 per share (resulting in Dufry’s ownership
interest increasing to 80.7 %) in exchange of the entire ownership interest of Flagship, and 80 % of Dufry South
America Investments SA held by Dufry. As a result of this transaction, the group’s ownership interest in Flagship
was reduced from 100 % to 80.7 %, thereby resulting in a deemed disposal of 19.3 % ownership interest in Flagship.
Dufry’s 60 % participation in Dufry Bolivia SA was sold at such time for a consideration of uSD 0.5 million.
under the parent entity extension method, the Group recognized a gain of CHF 4.2 million representing the
difference between the carrying value of the additional ownership interest in DSA and 19.3 % of net assets of
Flagship, in its consolidated income statement for the year ended December 31, 2006. Dufry South America
Investments SA was brought into DSA at book values.
3. partial disposal of shares in dufry South america ltd through initial public offering
On December 20, 2006, Dufry group disposed 23.3 % of its ownership interest in Dufry South America ltd (‘DSA’)
through an Initial Public Offering in luxembourg and Brazil at a price of uSD 12.50 per share. As a result of the
IPO, the Group’s ownership interest in DSA was reduced from 80.7 % to 57.4 %. under the parent entity extension
method, the Group recognized a gain of CHF 61.0 million representing the difference between the net proceeds
received and Group’s share of identifiable assets and goodwill disposed, in its consolidated income statement for
the year ended December 31, 2006. the net proceeds of this transaction have been CHF 227.9 million.
35 equiTy
outStanding ShaRe capital
the share capital of CHF 70.3 million comprises of 14,062,500 outstanding shares, each with a nominal value of
CHF 5 as of December 31, 2007.
authoRized and conditional ShaRe capital
As per Dufry ltd’s extraordinary shareholders meeting of November 17, 2005, an authorized capital of CHF 20.5
million and a conditional capital in the maximum amount of CHF 7.5 million were created. During the Board of
Directors meeting on December 5, 2005, it was decided to use CHF 10.3 million of the authorized capital and to
increase Dufry ltd’s share capital by that amount.
At an extraordinary shareholders meeting on November 23, 2006, shareholders approved the Board of Directors
proposal to increase the amount of the previously existing authorized share capital from CHF 10.2 million to
CHF 21.1 million and to set the duration of such authorized capital until November 23, 2008.
dividendS paid
the ordinary general assembly approved a dividend of CHF 1.00 per share on May 15, 2007 and the Company paid
such dividend, totaling CHF 14.062.500 during the year ended December 31, 2007.
36 shAre-bAsed pAymenT
ReStRicted Stock unit plan (RSu)
Dufry implemented two restricted stock unit plans (rSu) for certain members of the Group’s management.
On January 1, 2006, the Company granted to the participants of the first rSu grant the right to receive on January
1, 2008, free of charge, up to 100,000 rSu’s on aggregate, based on the offer price of CHF 80 per share.
F-57

in thousands of Chf
Partial disposal of shares in Dufry South America ltd (note 34)
Put option to acquire 20 % of Duty Free Caribbean Group (note 33)
Acquisition of 10 % of Duty Free Caribbean Group
Disposal of 20 % of interest in Dufry Cambodia ltd
Other changes
ToTAl
DuFry ANNuAl rEPOrt 2007 109
these rights granted in 2006 vested on January 1, 2007 as the average share price from the ten previous trading
days met the condition of being higher than CHF 80.80. After a one-year holding period the options were exercised
on January 1, 2008.
the Nomination and remuneration Committee of the Board of Directors approved the second rSu grant as of
January 1, 2007. under this rSu grant Dufry grants to the participants the right to receive on January 1, 2009, free
of charge, up to 105,000 rSu’s on aggregate, based on the basis price of CHF 102 per share. these rights vested on
January 1, 2008 as the share price at the vesting date was higher than CHF 103.02. the option will be exercisable
only after a holding period of one year, which ends on January 1, 2009.
the fair value of the options is estimated at the grant date using binomial pricing models, taking into account the
terms and conditions (risk less interest rate of 1.4 % for the first grant and 2.7 % for the second grant and a volatility
of 40 % for both grants) upon which the instruments were granted. the contractual life of each option granted
is two years. the expected volatility reflects assumptions, that the historical volatility is indicative of future trends,
which may also not necessarily be the actual outcome. there are no cash settlement alternatives. In 2007, the
accrued costs of CHF 5.5 million (2006: CHF 2.5 million) have been recorded against a reserve in equity.
In 2007, Dufry South America ltd implemented a restricted stock unit plan (rSu) granting to certain members of
their management the right to receive on January 1, 2008, free of charge, up to 26,500 rSu’s on aggregate, based
on the offer price of uSD 12.50 per share. these rights vested on January 1, 2008 as the share price at the vesting
date was higher than uSD 12.50. the option will be exercisable only after a holding period of one year, which ends
on January 1, 2009.
the fair value of this option has been estimated at the grant date using binomial pricing models, taking into account
the terms and conditions (risk less interest rate of 5.1 % and a volatility of 40 %) upon which the instruments were
granted. the contractual life of each option granted is two years. the expected volatility reflects assumptions, that
the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. there
are no cash settlement alternatives. In 2007, the accrued costs of uSD 0.1 million have been recorded against a
reserve in equity.
tReaSuRy ShaReS
During 2007 Dufry purchased 100,000 shares for a net price of CHF 13.1 million in order to comply with the
obligations of the first rSu grant.
37 chAnGes in pArTicipATion of minoriTy inTeresTs
38 evenTs AfTer The bAlAnce sheeT dATe
2007
18,453
12,843
–
671
33
32,000
2006
121,198
(12,843)
2,070
–
(152)
110,273
the rights granted in 2007 in relation with the second rSu grant vested on January 1, 2008, as the average share
price from the ten previous trading days met the condition of being higher than CHF 103.02. the option will be
exercised after the holding period end on January 1, 2009.
F-58

as of dECEmBEr 31, 2007
EuropE
dufry ltd
Dufry Investment ltd
Dufry International ltd
Dufry travel retail ltd
Dufry Basel-Mulhouse ltd
Dufry Samnaun ltd
Dufrital SpA
Cid Italia SpA
Dufry Italia SpA
Air Shop Srl
Dufry Shop Finance ltd Srl
Dufry Islas Canarias Sl
Dufry France SA
Food Village (Schiphol) BV
Dufry Hellas ltd
afriCa
Dufry tunisie SA
Dufry Maroc SArl
Dufry Aeroport d‘Alger Sarl
Dufry & G.t.D.C. ltd
Dufry Egypt llC
Eurasia
Dufry East OOO
Dufry Moscow Sheremetyevo
Dufry Singapore Pte ltd
Dufry Sharjah ltd
Dufry d.o.o, Belgrade
Dufry Cambodia ltd
110 DuFry ANNuAl rEPOrt 2007
mosT imporTAnT AffiliATed compAnies
loCation
Basel
Basel
Basel
Basel
Basel / Mulhouse
Samnaun
Milan
Milan
Milan
Milan
Milan
Canary Islands
Paris
Amsterdam
Athens
tunis
Casablanca
Algiers
Accra
Sharm-el-Sheikh
Moscow
Moscow
Singapore
Sharjah
Belgrade
Phnom Penh
F-59
Country
switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Italy
Italy
Italy
Italy
Italy
Spain
France
Netherlands
Greece
tunisia
Morocco
Algeria
Ghana
Egypt
russia
russia
Singapore
u. Arab Emirates
Serbia
Cambodia
ownErship
2007 in %
100
100
100
100
100
60
60
100
60
100
90
100
60
99
100
80
80
62
100
100
69
100
51
100
80
CurrEnCy
Chf
CHF
CHF
CHF
CHF
CHF
Eur
Eur
Eur
Eur
Eur
Eur
Eur
Eur
Eur
Eur
MAD
DZD
uSD
uSD
uSD
uSD
SGD
AED
rSD
uSD
sharE Capital 2007
in thousands
70,313
1,000
1,000
5,000
100
100
258
208
251
10
10
303
1,000
681
147
2,300
2,500
20,000
413
250
712
420
13,300
2,054
44
1,231

as of dECEmBEr 31, 2007
north amEriCa & CariBBEan
Dufry America, Inc.
Dufry America Services, Inc.
Dufry Houston DF & retail Part.
Dufry Newark Inc.
Dufry New york
retail Partnership
Dufry Mexico SA de CV
Dufry yucatan SA de CV
Dufry Frontera SA de CV
Alliance Duty Free Inc.
P&B Inc.
ABC Netherlands Inc.
Dufry Aruba N.V.
CEI NV (Aruba)
Dufry trinidad ltd
Inversiones tunc, SA
Puerto libre Int. SA
Duty Free Caribbean
(Holdings) ltd
Duty Free Caribbean limited
City Associated Enterprises ltd
CEI (Barbados) ltd
CEI (St. lucia) ltd
Cave Shepherd Cayman ltd
CEI (Antigua) ltd
south amEriCa
Dufry South America ltd
Dufry do Brasil DFS ltda
EMAC Comercio Importaçao
ltda
Eurotrade ltd
Flagship retail Services Inc.
loCation
Miami
Miami
Houston
Newark
New york
Mexico City
Mexico City
Monterrey
San Juan
San Juan
San Juan
Oranjestad
Oranjestad
Port of Spain
Santo Domingo
Managua
Bridgetown
Bridgetown
Nassau
Bridgetown
Castries
George town
St John
Hamilton
rio de Janeiro
rio de Janeiro
George town
Charlestown
Country
uSA
uSA
uSA
uSA
uSA
Mexico
Mexico
Mexico
Puerto rico
Puerto rico
Puerto rico
Aruba
Aruba
trinidad
Dominican republic
Nicaragua
Barbados
Barbados
Bahamas
Barbados
St. lucia
Cayman Island
Antigua
Bermuda
Brazil
Brazil
Cayman Island
St. Kitts & Nevis
F-60
DuFry ANNuAl rEPOrt 2007 111
ownErship
2007 in %
100
100
75
100
88
100
100
100
100
100
100
80
60
60
100
30
60
60
60
60
60
60
60
51
51
51
51
51
CurrEnCy
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
uSD
Brl
uSD
uSD
sharE Capital 2007
in thousands
5
398
1
1,501
1,208
11,429
1,141
4,684
2,213
25
10
1,000
23
392
0
59
27,000
5,000
1,232
1,500
50
50
2
780
4,146
9,858
5,580
0

112 DuFry ANNuAl rEPOrt 2007
F-61

(This page has been left blank intentionally.)
F-62

(This page has been left blank intentionally.)
F-63

Dufry AG:
Audited Statutory Financial Statements as of December 31, 2007.................................................. F-64
Income Statement ...................................................................................................................................... F-65
Balance Sheet............................................................................................................................................. F-66
Notes to the Financial Statements ............................................................................................................ F-67
Appropriation of Available Earnings ....................................................................................................... F-69
Report of the Statutory Auditors............................................................................................................... F-70
F-64

Income Statement
in thousands of Chf
Management and franchise fees income
Other income
Financial and dividend income
total Income
Personnel expenses
General and administrative expenses
Management and franchise fees expenses
Amortization
Other expenses
Financial expenses
Income taxes
total expenSeS
net earnIngS
F-65
DuFry AnnuAl rePOrt 2007
FInAncIAl rePOrt
FInancIal StatementS DuFry ltD
2007
6,521
918
53,491
60,930
8,485
2,901
1,271
5,572
174
854
313
19,570
41,360
F113
2006
5,748
–
24,361
30,109
2,573
2,134
741
5,548
179
385
192
11,752
18,357
FInancIal StatementS DuFry ltD

alance Sheet
Assets
114 DuFry AnnuAl rePOrt 2007
in thousands of Chf
cash and cash equivalents
Marketable securities
receivables – intercompany
receivables – related party
receivables – third party
Other current assets
Current assets
Investments
Property, plant and equipment
Intangible assets
non-current assets
total aSSetS
LiAbiLities And shArehoLders’ equity
in thousands of Chf
Payables – intercompany
Payables – related party
Payables – third party
Other current liabilities
Current liabilities
non-current liabilities
total liabilities
Share capital
Share premium
legal reserves
reserve for treasury shares
Available earnings
shareholders‘ equity
total lIabIlItIeS anD ShareholDerS’ equIty
F-66
31. 12. 07
8
12,600
145,918
511
537
149
159,723
242,497
–
10,236
252,733
412,456
31. 12. 07
1,032
318
1,400
7,109
9,859
–
9,859
70,313
274,987
1,500
13,107
42,690
402,597
412,456
31. 12. 06
11
–
124,602
734
250
44
125,641
242,397
10
15,802
258,209
383,850
31. 12. 06
1,396
–
3,801
2,133
7,330
1,220
8,550
70,313
274,987
582
–
29,418
375,300
383,850

noteS to the FInancIal StatementS
SIgnIFIcant InveStmentS
in thousands of Chf
dufry investment Ltd, BaseL
Book value
Share capital
Ownership (in %)
dufry management Ltd, BaseL
Book value
Share capital
Ownership (in %)
dufry Corporate Ltd, ZüriCh
Book value
Share capital
Ownership (in %)
31. 12. 07
242,297
1,000
100 %
100
100
100 %
100
100
100 %
31. 12. 06
242,297
1,000
100 %
100
100
100 %
A dividend of cHF 35 million, which was approved at the Shareholders’ Meeting of Dufry Investment ltd held on
April 3, 2008, is included in the position dividend income.
guarantee commItment regarDIng SwISS value aDDeD tax (vat)
Dufry ltd forms together with Dufry travel retail ltd, Dufry Investment ltd, Dufry International ltd, Dufry
Samnaun ltd, Dufry Basel Mulhouse ltd, Dufry Participations ltd (former Dufry emirates ltd), Dufry russia
Holding ltd and Dufry Management ltd a tax group for the Swiss Federal tax Administration - Main Division VAt.
As such, Dufry ltd is jointly and severally liable for the Value Added tax owed by the Group.
SIgnIFIcant ShareholDerS’ partIcIpatIon
in %
travel retail Investment ScA, luxembourg
Julius Baer Investment Management llc, uSA
threadneedle Asset Management Holdings ltd, uK
egerton capital limited Partnership, uK
Wellington Management company llP, uSA
Areas SA, Barcelona, Spain
authorIzeD anD conDItIonal Share capItal
DuFry AnnuAl rePOrt 2007 115
31. 12. 07
36.67 %
6.76 %
6.69 %
5.18 %
5.03 %
–
–
–
–
31. 12. 06
53.02 %
–
–
–
5.03 %
18.02 %
As per Dufry ltd’s extraordinary shareholders meeting of november 17, 2005, an authorized capital of cHF 20.5
million and a conditional capital in the maximum amount of cHF 7.5 million were created. During the Board of
Directors meeting on December 5, 2005, it was decided to use cHF 10.3 million of the authorized capital and to
increase Dufry ltd’s share capital by that amount.
At an extraordinary shareholders meeting on november 23, 2006, shareholders approved the Board of Directors
proposal to increase the amount of the previously existing authorized share capital from cHF 10.2 million to
cHF 21.1 million and to set the duration of such authorized capital until november 23, 2008.
F-67

116 DuFry AnnuAl rePOrt 2007
treaSury ShareS
During 2007, Dufry ltd acquired 100,000 shares.
compenSatIon, partIcIpatIonS anD loanS to the memberS oF the boarD oF DIrectorS anD the group
executIve commIttee (DIScloSure accorDIng to SwISS coDe oF oblIgatIonS)
PArticiPAtions in dufry Ltd
As of December 31, 2007, the following members of the Board of Directors and Group executive committee
(including closely related parties) hold the following number of shares / number of share options (restricted share
units) / percentage participation in Dufry ltd: Mr. Mario Fontana, Member 3,893/0/0 %; Mr. luis Andrés Holzer
neumann, Member 2,272,271/0/16.2 %; Mr. Joaquin Moya-Angeler cabrera, Member 8,890/0/0 %; Mr. Julián
Díaz, chief executive Officer 0/37,600/0.3 % among which 18,800 not vested; Mr. Xavier rossinyol, chief Financial
Officer 750/23,200/0.2 % among which 11,600 not vested; Mr. José Antonio Gea, Global chief Operating Officer
0/23,200/0.2 % among which 11,600 not vested; Mr. Pascal Duclos, General counsel 0/10,000/0.1 % among which
5,000 not vested; Mr. Miguel Ángel Martínez, cOO region Africa 0/10,000/0.1 % among which 5,000 not vested;
Mr. rené riedi, cOO region eurasia 0/10,000/0.1 % among which 5,000 not vested; and Mr. José H. González, cOO
region north America & caribbean 0/10,000/0.1 % among which 5,000 not vested. the remaining members of the
Board of Directors or the Group executive committee have no participation.
All these participations are reported in accordance with the regulations of the Federal Act on Stock exchanges
and Securities trading (SeStA), in force since December 1, 2007, showing the participation (including rSu) as a
percentage of the number of outstanding registered shares as of December 31, 2007.
comPensAtion of members of the boArd of directors And GrouP executive committee
All amounts are expressed in thousands of chf.
In 2007, Dufry paid to its non-executive members of the Board of Directors fees in a total amount of cHF 300 (to
Mr. Xavier Bouton, Member cHF 50; to Mr. Mario Fontana, Member cHF 100; to Mr. luis Andrés Holzer neumann,
Member cHF 50; to Mr. Joaquin Moya-Angeler cabrera, Member cHF 100). In addition to these fees Mr. Xavier
Bouton received cHF 250 for strategic consulting services provided to the Group during the year.
the social charges related to these fees are calculated in accordance with the local regulations applicable in
the domicile of each Board member amounted to cHF 9 in total (to Mr. Mario Fontana, Member cHF 6 and to
Mr. luis Andrés Holzer neumann, Member cHF 3). there are no other compensations paid directly or indirectly
to active or former members of the Board of Directors. there are no loans or guarantees received or provided to
these Board members.
Finally, the total compensation to the non-executive members of the Board of Directors amounted to cHF 559 in
total (to Mr. Xavier Bouton, Member cHF 300; to Mr. Mario Fontana, Member cHF 106; to Mr. luis Andrés Holzer
neumann, Member cHF 53; to Mr. Joaquin Moya-Angeler cabrera, Member cHF 100).
In 2007, the compensations to the nine members of the Group executive committee amounted to cHF 9,804 in total
(Basic salary cHF 3,432, Bonus cHF 1,913, 62,000 restricted share units of Dufry ltd and 13,478 of Dufry South
America ltd, Allowances in kind cHF 84, Social benefits cHF 459). Included in these figures is the compensation
paid to Mr. Julián Diáz, chief executive Officer, who received a total compensation of cHF 2,702 (Basic salary
cHF 800, Bonus cHF 629, 18,800 unvested restricted share units, Allowances in kind cHF 19, Social benefits
cHF 104).
there are no other compensations paid directly or indirectly to active or former members of the Group executive
committee. there are no loans or guarantees received or provided to these members.
For details regarding conditions of restricted Stock unit Plan (rSu) please refer to note 36 of the consolidated
financial statements.
F-68

approprIatIon oF avaIlable earnIngS
in thousands of Chf
retained earnings
net earnings for the year
reserve for treasury shares
available earnings as of december 31
transfer to general legal reserves
Dividend proposal
to be carried forward
DuFry AnnuAl rePOrt 2007 117
the Board of Directors proposes to the Ordinary General Meeting of Dufry ltd the following appropriation of
available earnings:
F-69
2007
14,437
41,360
(13,107)
42,690
(2,100)
(14,063)
26,527
2006
11,061
18,357
–
29,418
(918)
(14,063)
14,437

118 DuFry AnnuAl rePOrt 2007
F-70

(This page has been left blank intentionally.)
F-71

Dufry AG:
Audited Consolidated Financial Statements as of December 31, 2006 ........................................... F-72
Consolidated Income Statement ............................................................................................................... F-73
Consolidated Balance Sheet...................................................................................................................... F-74
Consolidated Cash Flow Statement.......................................................................................................... F-75
Consolidated Statement of Changes in Equity ........................................................................................ F-76
Notes to the Consolidated Financial Statements ..................................................................................... F-77
Most important Affiliated and Associated Companies ........................................................................... F-124
Report of the Group Auditors ................................................................................................................... F-125
F-72

54
Consolidated FinanCial statements
as oF deCember 31, 2006
Consolidated inCome statement
in thousands of CHF
Net sales
Advertising income
tUrnoVer
Cost of sales
Gross ProFit
Selling expenses, net
Personnel expenses
General expenses, net
Depreciation and amortization
Other operational expenses
Other operational income
earnings before interest and taxes ( ebit )
Income from associates
Financial expenses (income)
earnings before taxes ( ebt )
Income taxes
net earninGs
attributable to
Equity holders of the parent
Minority interest
earnings per share attributable to equity holders of the parent
Basic earnings per share in CHF
Diluted earnings per share in CHF
Dufry Annual Report 2006 — Consolidated Financial Statements
F-73
note
1
2
3
4
5
6
7
8
9
10
28
28
2006
1,403,758
32,537
1,436,295
691,925
744,370
285,989
179,469
118,413
50,046
21,863
(80,612)
169,202
–
30,739
138,463
13,883
124,580
107,714
16,866
7.66
7.61
2005
932,892
16,938
949,830
477,615
472,215
171,691
123,214
77,165
23,665
11,684
( 6,679 )
71,475
398
5,748
66,125
13,439
52,686
41,560
11,126
3.98
3.98

Consolidated balanCe sheet
assets
in thousands of CHF
Cash and cash equivalents
Trade receivables, net
Income tax receivables
Other accounts receivable
Inventories
Current assets
Property, plant and equipment
Intangible assets
Other non-current assets
Deferred tax assets
non-current assets
total assets
liabilities and shareholders’ eqUity
in thousands of CHF
Trade payables
Bank debt, short-term
Financial debt, short-term
Income tax payables
Other liabilities
Provisions, short-term
Current liabilities
Bank debt, long-term
Financial debt, long-term
Other non-current liabilities
Deferred tax liabilities
Post-employment benefit obligations
Provisions, long-term
non-current liabilities
total liabilities
Equity attributable to equity holders of the parent
Minority interest
total equity
total liabilities and shareholders’ eqUity
Dufry Annual Report 2006 — Consolidated Financial Statements
F-74
note
11
12
13
14
15
16
18
19
note
20
21
22
20
19
23
22
31. 12. 06
102,390
7,122
3,645
103,528
277,729
494,414
101,952
1,143,070
20,548
15,494
1,281,064
1,775,478
31. 12. 06
157,300
21,725
6,821
8,171
153,180
1,975
349,172
585,230
2,063
7,447
165,908
10,512
–
771,160
1,120,332
482,124
173,022
655,146
1,775,478
31. 12. 05
51,602
2,192
6,713
66,472
200,014
326,993
65,120
422,371
8,946
7,660
504,097
831,090
31. 12. 05
102,982
86,403
8,629
7,341
109,070
8,939
323,364
1,575
1,968
4,009
42,760
9,704
1,674
61,690
385,054
386,352
59,684
446,036
831,090
55

56
Consolidated Cash Flow statement
in thousands of CHF
Earnings before taxes (EBT)
adjustments for
Depreciation and amortization
Other non-cash items
Decrease (increase) in allowances, deferred taxes and provisions
Equity consolidated income
Gain on sale of property, plant and equipment
Net gain on sale of investments
Loss /(gain) on unrealized foreign exchange differences
Interest income
Interest expenses
Cash flow before working capital changes
Increase in trade and other accounts receivable
Increase in inventories
Increase in trade and other accounts payable
Cash flow generated from operations
Income taxes paid
net cash flows from operating activities
Cash flow from investing activities
Acquisition of interests in subsidiaries, net of cash
Sale of interests in subsidiaries, net of cash
Proceeds from sale of associated companies
Dividends from associated companies
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of equipment
Interest received
net cash flows used in investing activities
Cash flow from financing activities
Net proceeds from issue of shares
Dividends paid to minority shareholders
Increase in capital by minority equity holder
Increase of financial debt
Decrease of financial debt
Increase (decrease) of loans
Bank transaction costs paid
Interest paid
net cash flows from financing activities
Currency translation differences
increase in cash and cash equivalents
Cash and cash equivalents at the
– beginning of the period
– end of the period
Dufry Annual Report 2006 — Consolidated Financial Statements
F-75
F-5
note
5
8
7
9
9
30
31
15
16
11
2006
138,463
50,046
2,450
(1,966)
–
(1,751)
(65,198)
1,465
(2,057)
35,735
157,187
(24,702)
(27,121)
34,541
139,905
(17,442)
122,463
(716,153)
228,084
–
–
(50,728)
(11,537)
9,988
1,902
(538,444)
–
(5,215)
74
732,832
(204,809)
(1,497)
(7,385)
(34,686)
479,314
(12,545)
50,788
51,602
102,390
2005
66,125
23,665
–
7,503
(398)
(669)
( 1,302 )
( 3,188 )
( 554 )
7,852
99,034
( 21,217 )
( 40,464 )
35,635
72,988
( 16,049 )
56,939
( 127,980 )
( 296 )
14,700
398
( 38,752 )
( 61,804 )
1,966
516
( 211,252 )
220,221
( 2,955 )
–
–
( 41,488 )
308
–
( 7,931 )
168,155
2,715
16,557
35,045
51,602

Consolidated statement oF ChanGes in eqUity
in thousands of CHF
balance as of 01.01.05
Currency translation differences
Total income and expense for the
year recognized directly in equity
Net earnings
Total income and expense for the year
Increase in share capital
Net proceeds from
Initial Public Offering (IPO)
Changes in participation
of minority interests
Dividend to minority interests
balance as of 31. 12. 05
Currency translation differences
Net gain on hedge of investment
Total income and expense for the
year recognized directly in equity
Net earnings
Total income and expense for the year
Share-based payment
Changes in participation
of minority interests (note 17)
Dividend to minority interests
balance as of 31. 12. 06
share
CaPital
45,000
–
–
–
–
15,000
10,313
–
–
70,313
–
–
–
–
–
–
–
–
70,313
attribUtable to eqUity holders oF the Parent
share
PremiUm
–
–
–
–
–
120,300
136,214
–
–
256,514
–
–
–
–
–
–
–
–
256,514
Dufry Annual Report 2006 — Consolidated Financial Statements F-5 F-76
CUrrenCy
translation
reserVes
(9,366)
12,218
12,218
–
12,218
–
–
–
–
2,852
(43,553)
29,161
(14,392)
–
(14,392)
–
–
–
(11,540)
retained
earninGs total
15,113
–
–
41,560
41,560
–
–
–
–
56,673
–
–
–
107,714
107,714
2,450
–
–
166,837
50,747
12,218
12,218
41,560
53,778
135,300
146,527
–
–
386,352
(43,553)
29,161
(14,392)
107,714
93,322
2,450
–
–
482,124
minority
interest eqUity
88,775
5,667
5,667
11,126
16,793
–
–
(42,929)
2,955
59,684
(8,586)
–
(8,586)
16,866
8,280
–
110,273
(5,215)
173,022
139,522
17,885
17,885
52,686
70,571
135,300
146,527
(42,929)
(2,955)
446,036
(52,139)
29,161
(22,978)
124,580
101,602
2,450
110,273
(5,215)
655,146
57

58
notes to the Consolidated
FinanCial statements
CorPorate inFormation
Dufry Ltd (“Dufry” or “the Company”) is a public company with headquarter in Basel, Switzerland. The Company is one
of the world’s leading travel retail companies with 444 shops worldwide. The shares of the Company are listed on the
Swiss Stock Exchange (SWX). The parent of the Company is Travel Retail Investments SCA, which owns 53.0% in the
Dufry Group and which is itself controlled by funds managed by Advent International Corp.
The consolidated financial statements of Dufry Ltd and its subsidiaries for the year ended December 31, 2006 were authorized
for issue in accordance with a resolution of the Board of Directors on April 12, 2007.
basis oF PreParation
Dufry Ltd’s consolidated financial statements are prepared on a historical cost basis, modified where stated by the
revaluation at fair value, and comply with the International Financial Reporting Standards (IFRS) formulated by the
International Accounting Standards Board (IASB) and with International Accounting Standards (IAS) and interpretations
formulated by its predecessor organization the International Accounting Standards Committee (IASC), as well as with
the following significant accounting policies.
All figures included in the consolidated financial statements and notes are rounded to the nearest CHF 1,000, except
where otherwise indicated.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements F-77

sUmmary oF siGniFiCant aCCoUntinG PoliCies
The accounting policies adopted are consistent with those of the previous financial year except as follows:
In 2006, Dufry Group has adopted the following new and amended IFRS and IFRIC interpretations. Adoption of these
revised standards and interpretations did not have any material effect on the financial statements of the Group. They did
however give rise to additional disclosures.
— IAS 19 Amendment – Employee Benefits
— IAS 21 Amendment – The Effects of Changes in Foreign Exchange Rates
— IAS 39 Amendments – Financial Instruments: Recognition and Measurement
— IFRIC 4 Determining whether an Arrangement contains a Lease
— IFRIC 5 Rights to Interests Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
— IFRIC 6 Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment
The principal effects of these changes in policies are discussed below.
ias 19 – amendment – employee benefits
As of January 1, 2006, the Group adopted the amendments to IAS 19. As a result, additional disclosures are made providing
information about trends in the assets and liabilities of the defined benefit plans and the assumptions underlying the
components of the defined benefit costs. This change has resulted in additional disclosures being included for the years
ended December 31, 2006 and 2005, but has not had a recognition or measurement impact, as the Group chose not to
apply the new option offered to recognize actuarial gains and losses outside of the income statement.
ias 21 – amendment – the effects of changes in foreign exchange rates
As of January 1, 2006, the Group adopted the amendments to IAS 21. As a result, all foreign exchange differences arising
from a monetary item that forms part of the Group’s net investment in a foreign operation are recognized in a separate
component of equity in the consolidated financial statements regardless of the currency in which the monetary item is
denominated. This change has had no significant impact as of December 31, 2006 and 2005.
ias 39 – amendments - Financial instruments: recognition and measurement
Amendment for financial guarantee contracts (issued August 2005) – amended the scope of IAS 39 to require financial
guarantee contracts that are not considered to be insurance contracts to be recognized initially at fair value and to be
re-measured at the higher of the amount determined in accordance with IAS 37 – provisions, contingent liabilities and
contingent assets and the amount initially recognized less, when appropriate, cumulative amortization recognized in accordance
with IAS 18 – revenue. This amendment did not have an effect on the financial statements.
Amendment for hedges of forecast intragroup transactions (issued April 2005) – amended IAS 39 to permit the foreign
currency risk of a highly probable intragroup forecast transaction to qualify as the hedged item in a cash flow hedge,
provided that the transaction is denominated in a currency other than the functional currency of the entity entering into
that transaction and that the foreign currency risk will affect the consolidated income statement. As the Group currently
has no such transactions, the amendment did not have an effect on the financial statements. Amendment for the fair
value option (issued June 2005) – amended IAS 39 to restrict the use of the option to designate any financial asset or
any financial liability to be measured at fair value through the income statement. The Group had not previously used this
option; hence, the amendment did not have an effect on the financial statements.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements F-78
59

60
iFriC 4 – determining whether an arrangement contains a lease
The Group adopted IFRIC Interpretation 4 as of January 1, 2006, which provides guidance in determining whether
arrangements contain a lease to which lease accounting must be applied. This change in accounting policy has not had
a significant impact on the Group as of December 31, 2006 or December 31, 2005.
iFriC 5 – rights to interests arising from decommissioning, restoration and environmental rehabilitation Funds
The Group adopted IFRIC Interpretation 5 as of January 1, 2006, which establishes the accounting treatment for funds
established to help finance decommissioning of a company’s assets. As the entity does not currently operate in a country
where such funds exist, this interpretation has had no impact on the financial statements.
iFriC 6 – liabilities arising from Participating in a specific market
The Group adopted IFRIC Interpretation 6 as of January 1, 2006, which established the recognition date for liabilities
arising from the EU Directive relating to the disposal of waste electrical and electronic equipment. There was no impact
on the financial position of the Group as of December 31, 2006 and December 31, 2005.
The following standard is mandatory for accounting periods beginning on or after 1 January 2006 but is not relevant for
Dufry’s operations in the period under review:
— IFRS 6 Exploration for and evaluation of mineral resources
The following interpretations to existing standards have been published that are mandatory for accounting periods beginning
on or after March 1, 2006 or later periods, but which Dufry has not adopted early:
— IFRS 7 Financial Instruments: Disclosures (effective for annual periods beginning on or after January 1, 2007)
— IFRIC 7 Applying the Restatement Approach under IAS 29, Financial Reporting in Hyperinflationary Economies
(effective for annual periods beginning on or after March 1, 2006)
— IFRS 8 Segment Reporting (effective for annual periods beginning on or after January 1, 2009)
— IFRIC 8 Scope of IFRS 2 (effective for annual periods beginning on or after May 1, 2006)
— IFRIC 9 Reassessment of Embedded Derivatives (effective for annual periods beginning on or after June 2006)
— IFRIC 10 Interim Financial Reporting and Impairment (effective for annual periods beginning on or after
November 1, 2006)
— IFRIC 11 Group and Treasury Share Transactions (effective for annual periods beginning on or after March 1, 2007)
— IFRIC 12 Service Concession Arrangements (effective for annual periods beginning on or January 1, 2008)
iFrs 7 – Financial instruments disclosures, and complementary amendments to ias 1, Presentation of Financial
statements – Capital disclosures
IFRS 7 introduces new disclosures relating to financial instruments. The Group will adopt the standard from January 1,
2007 and its impact is presently being evaluated.
iFriC 7 – applying the restatement approach under ias 29, Financial reporting in hyperinflationary economies
IFRIC 7 provides guidance on how to apply the requirements of IAS 29 in a reporting period in which an entity identifies
the existence of hyperinflation in the economy of its functional currency, when the economy was not hyperinflationary in
the prior period. As none of the Group entities have a currency of a hyperinflationary economy as its functional currency,
IFRIC 7 is not expected to have any impact to Dufry’s consolidated financial statements.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements F-79

iFrs 8 – segment reporting
IFRS 8 requires an entity to adopt the “management approach” to reporting on the financial performance of its operating
segments. Generally, the information to be reported would be what management uses internally for evaluating segment
performance and deciding how to allocate resources to operating segments. The impact of IFRS 8 for Dufry is currently
being evaluated.
iFriC 8 – scope of iFrs 2
IFRIC 8 requires consideration of transactions involving the issuance of equity instruments – where the identifiable
consideration received is less than the fair value of the equity instruments issued – to establish whether or not they fall
within the scope of IFRS 2. The Group will apply IFRIC 8 from 1 January 2007, but it is not expected to have any impact
on the Group’s accounts.
iFriC 9 – reassessment of embedded derivatives
IFRIC 9 requires an entity to assess whether an embedded derivative is required to be separated from the host contract
and accounted for as a derivative when the entity first becomes a party to the contract. Subsequent reassessment is
prohibited unless there is a change in the terms of the contract that significantly modifies the cash flows that otherwise
would be required under the contract, in which case reassessment is required. As none of the Group entities have
changed the terms of their contracts, IFRIC 9 is not relevant to the Group’s operations.
iFriC 10 – interim Financial reporting and impairment
IFRIC 10 prohibits the impairment losses recognized in an interim period on goodwill, investments in equity instruments
and investments in financial assets carried at cost to be reversed at a subsequent balance sheet date. The Group will
apply IFRIC 10 from 1 January 2007, but it is not expected to have any impact on the Group’s accounts.
iFriC 11 – Group and treasury share transactions
IFRIC 11 requires a share-based payment arrangement in which an entity receives goods or services as consideration
for its own equity instruments to be accounted for as an equity-settled share-based payment transaction, regardless of
how the equity instruments needed are obtained. Dufry will apply IFRIC 11 from 1 March 2007, but is not expected to have
any significant impact on Dufry’s accounts.
iFriC 12 – service Concession arrangements
IFRIC 12 sets out general principles on recognizing and measuring the obligations and related rights in service concession
arrangements. Dufry will apply IFRIC 12 from 1 January 2007.
The financial statements based on IFRS contain assumptions and estimates, which may affect the figures shown in the
present report. The actual result may differ from these estimates.
method of consolidation
The consolidated financial statements comprise the financial statements of Dufry Ltd and its subsidiaries as per December
31. The financial statements of the subsidiaries are prepared for the same reporting period as the parent Company,
using consistent accounting policies.
All intercompany transactions as well as income and expenses, assets and liabilities resulting from intercompany transactions
are fully eliminated. Intercompany profits from inventory and supplies not yet realized through sales to third
parties are eliminated.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which Dufry obtains control, and continue
to be consolidated until the date that such control ceases.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-80
61

62
scope of consolidation
The consolidated financial statements include the financial results of Dufry Ltd and its subsidiaries in which Dufry Ltd
directly or indirectly holds a majority of voting rights or otherwise exercises any other form of direct or indirect control,
the assets and liabilities, expenses and income of the companies concerned are included in full in the consolidated financial
statements. Minority interests in the earnings and equity of subsidiaries are disclosed separately.
Minority interests represent the portion of profit or loss and net assets not held by the Group and are presented separately
in the income statement and within equity in the consolidated balance sheet, separately from parent shareholders’
equity. Acquisitions of minority interests are accounted for using the parent entity extension method, whereby, the difference
between the consideration and the book value of the share of the net assets acquired is recognized as goodwill.
investments in subsidiaries
In cases where the Group directly or indirectly holds a majority of voting rights or otherwise exercises any other form of
direct or indirect control, the assets and liabilities, expenses and income of the companies concerned are included in
full in the consolidated financial statements. Minority interests in the earnings and equity of subsidiaries are disclosed
separately.
Companies are consolidated from the date at which control is acquired by use of the purchase method of accounting.
Identifiable assets acquired, liabilities and contingent liabilities assumed in a business combination are measured initially
at the fair values at the acquisition date, irrespective of the extent of any minority interests. The excess of the cost of
acquisition over the fair value of the Group’s share of the identifiable net assets is recorded as goodwill. If the cost of acquisition
is less than the fair value of the net assets of the subsidiary acquired, the difference is directly recognized in the
income statement. The value of recorded goodwill and other intangibles having an indefinite useful life are reviewed annually
and if management determines that impairment in the carrying value exists, an impairment loss is recognized.
If a subsidiary is sold, the difference between the selling price and the net assets inclusive the translation difference is
recognized as net profit on disposal of investments in the consolidated income statement.
investments in associates
Investments in associates are accounted for using the equity method of accounting. These are entities in which the
Group has significant influence (20% – 50% ownership) and which are neither subsidiaries nor joint ventures. The investment
in associates is carried in the balance sheet at cost plus post acquisition changes in the Group’s share of net
assets of the associates, less any impairment in value. The income statement reflects the Group’s share of the results
of operations of these associates.
Financial investments
Financial investments (less than 20% owned) are stated at fair value. Dividends received from them, if any, as well as the
change in fair value are included in the income statement (see also paragraph “Financial assets at fair value through
profit and loss” in the “Valuation methods and definition” section of this report).
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-81

segment reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to
risks and returns that are different from those of other business segments.
The Group’s risks and returns are predominantly affected by the fact that it operates in different countries. Therefore, the
Group reports segmental information in its financial statements in the same way as it does internally to senior management
using geographical areas as its primary segments.
A geographical segment is engaged in providing products or services within a particular economic environment that are
subject to risks and returns, that are different from those of segments operating in other economic environments.
Foreign currency translation
The consolidated financial statements are expressed in Swiss Francs (CHF). Each company in the Group determines its
own functional currency and items included in the financial statements of each entity are measured using that functional
currency. Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency
rate of exchange ruling at the balance sheet date. All differences are taken to profit or loss with the exception of
differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These are
taken directly to equity until the disposal of the net investment, at which time they are recognized in profit or loss. Tax
charges and credits attributable to exchange differences on those borrowings are also dealt with in equity. Non-monetary
items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as
at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated
using the exchange rates at the date when the fair value was determined. Any goodwill arising on the acquisition of a
foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition
are treated as assets and liabilities of the foreign operation and translated at the closing rate.
As at the reporting date, the assets and liabilities of all subsidiaries reporting in foreign currency are translated into the
presentation currency of Dufry (Swiss Francs) at the rate of exchange ruling at the balance sheet date and their income
statements are converted at the weighted average exchange rates of each month. The exchange differences arising on
the translation are taken directly to a separate component of equity. On disposal of a foreign entity, the deferred cumulative
amount recognized in equity relating to that particular foreign operation is recognized in the income statement.
Dufry has considered some intercompany long-term loans, which are not likely to be settled in a foreseeable future as
being part of the net investment in such subsidiary. In compliance with IAS 21 paragraph 15 the related exchange differences
have been considered in a separate component of the equity, until the disposal of the net investment or the repayment
of the loan, at which time they are included in the income statement as part of the gain or loss on disposal.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-82
63

64
ValUation methods and deFinitions
turnover
Net sales
Dufry’s net sales consist of travel related retail sales of goods, which are sold duty free or duty paid, depending on local
laws or regulations. Sales are recognized when significant risks and rewards of ownership of the products have been
transferred to the customer. Retail sales are settled in cash or by credit card. The sales are considered net, after deducting
trade discounts and, where applicable, sales taxes.
Advertising income
Advertising income is recognized in the period, in which the services have been rendered, and the amount of income
incurred in respect of this transaction can be measured reliably and it is probable that the economic benefits associated
with the transaction will flow to the company.
Cost of sales
Cost of sales are recognized when a subsidiary sells a product and comprise the purchase price and the cost incurred
until the product arrives at the warehouse, i.e. import duties, transport and handling cost.
other operational expenses and other operational income
Other operational expenses and other operational income reflect items such as non-recurring transactions, gains or
losses on sale of property, plant and equipments or intangible assets, as well as changes for impairment and provisions.
Also included in other operational income is the net income from the sale of interest in subsidiaries, less related
expenses incurred to perform these transactions.
Financial result
The financial result includes interest on borrowings with third parties and interest on trade accounts with third parties. It
also includes foreign exchange results deriving from the revaluation of monetary assets and liabilities in foreign currency.
Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and banks and short-term deposits with banks, with maturity of 90
days or less.
trade receivables
Trade receivables are stated at their nominal value less an allowance for any uncollectible amount. The allowance for doubtful
accounts is established based on an individual evaluation when collection is no longer possible based on experience.
inventories
Inventories are valued at the lower of historical cost or net realizable value. The historical costs are determined using the
FIFO method. Historical cost includes all expenses incurred in bringing the inventories to their present location and condition.
This includes import duties, transport and handling costs and any other directly attributable costs of acquisition.
Purchase discounts and rebates are deducted in determining the cost of purchases. The net realizable value is the estimated
selling price in the ordinary course of business less the estimated costs necessary to make the sale. Inventory
allowances are set up in the case of slow-moving stock; obsolete and expired items are fully written off.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-83

Property, plant and equipment
These are stated at cost less accumulated depreciation and any impairment in value. Depreciation is computed on a
straight-line basis over the estimated useful life of the asset or the lease term.
The useful lives applied are as follows:
— Buildings 20 to 40 years
— Leasehold improvements the shorter of 10 years or the remaining lease term
— Furniture, fixture and vehicles the shorter of 4 years or the remaining lease term
— Computer hardware the shorter of 5 years or the remaining lease term
The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
Land is valued at acquisition cost and not depreciated as it is deemed to have an indefinite life. Additional costs, which
extend the useful life of tangible assets, are capitalized. There are no financing costs associated with the construction
of tangible assets.
The carrying amount of tangible assets is reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of the asset may not be recoverable. An asset’s carrying amount is written down immediately
to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The
recoverable amount is the higher of an asset’s fair value less cost to sell and value in use.
investment properties
Investment property is held for long-term purposes and is not occupied by the Group itself. Such properties are treated as
non-current investments and are carried at fair value. Fair value is the market value as determined by external appraisers
on an annual basis. Changes in fair value are recorded in the income statement and are included in operating income in
the period in which they arise. During the periods disclosed, the Group did not hold any property in this category.
intangible assets
Concession rights and brands acquired both separately and from a business combination
Intangible assets acquired separately are capitalized at cost and from a business acquisition are capitalized at fair value
as at the date of acquisition. Following initial recognition, the cost model is applied to the class of intangible assets. The
useful lives of these intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are
amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible
asset may be impaired. Intangible assets with indefinite useful lives are not amortized but are tested for impairment
annually either individually or at the cash-generating unit level. The useful life of an intangible asset with an indefinite
life is reviewed annually to determine whether indefinite life assessment continues to be supportable. If not, the change
in useful life assessment from indefinite to finite is made on a prospective basis. Brands have indefinite useful lives and
are therefore not amortized.
The indefinite life concession rights have been granted for a period ranging from 10 to 30 years by the relevant airport
authorities. According to Dufry’s experience, these concession rights have always been renewed in the past at little or
no cost to the Group. As a result these concession rights are assessed as having an indefinite useful life.
Goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of the identifiable net assets of the related
subsidiary or associate at the date of the acquisition. Goodwill is carried at cost less accumulated impairment losses.
The carrying amount of goodwill will be reviewed annually for impairment when events or changes in circumstances
indicate that the carrying value is not recoverable. Gains and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold. Goodwill is allocated to the cash-generating units for the purpose of impairment
testing.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-84
65

66
impairment of assets
Assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment. Assets
that are subject to depreciation and amortization are reviewed for impairment whenever events or circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized when the carrying amount of
an asset exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell
and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units).
leasing
Leases of assets under which the Group essentially assumes all the benefits and risks of ownership are classified as
finance leases. Finance leases are capitalized at the inception of the lease at the fair value of the leased property or if
lower at the present value of the minimum lease payments. The assets acquired under these contracts are depreciated
over the shorter of the estimated useful life of the asset or the lease term. The corresponding financial obligations are
included in the liabilities. Leases of assets under which all the risks and rewards of ownership are effectively retained by
the lessor are classified as operating leases and payments made are charged to the income statement on a straight-line
basis. The Group does not hold finance leases during the periods disclosed.
investments
The Group classifies its investments in the following categories: financial assets at fair value through profit or loss, loans
and receivables, held-to-maturity investments, and available-for-sale financial assets. The classification depends on the
purpose for which the investments were acquired. Management determines the classification of its investments at initial
recognition and re-evaluates this classification at every reporting date.
Financial assets at fair value through profit or loss
This category has two sub-categories: financial assets held for trading, and those designated at fair value through profit
or loss at inception. A financial asset is classified in this category if acquired principally for the purpose of selling in the
short-term. Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in this
category are classified as current assets if they are either held for trading or are expected to be realized within 12 months
of the balance sheet date. During the periods disclosed, the Group did not hold any investments in this category.
loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of trading
the receivable. Loans and receivables are included in current assets, except for maturities greater than 12 months
after the balance sheet date, in which case they are classified as non-current assets. Loans and receivables are included
in other accounts receivable in the balance sheet.
held-to-maturity investments
Held-to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities
that the Group’s management has the positive intention and ability to hold to maturity. During the year, the Group
did not hold any investments in this category.
available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any
of the other categories. They are included in non-current assets unless management intends to dispose of the investment
within 12 months of the balance sheet date. Purchases and sales of investments are recognized on the transaction
date. This is the date on which the Group commits to purchase or sell the asset. Investments are initially recognized at
fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Investments are
derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-85

Group has transferred substantially all risks and rewards of ownership. Available-for-sale financial assets and financial
assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables and held-tomaturity
investments are carried at amortized cost using the effective interest method. Realized and unrealized gains
and losses arising from changes in the fair value of the financial assets at fair value through profit or loss category are
included in the income statement in the period in which they arise. Unrealized gains and losses arising from changes
in the fair value of non-monetary securities classified as available-for-sale are recognized in equity. When securities
classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the income
statement as gains and losses from investment securities.
The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active
(and for unlisted securities), the Group establishes fair value by using valuation techniques. These include the use of
recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow
analysis, and option pricing models refined to reflect the issuer’s specific circumstances.
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or Group of
financial assets are impaired. In the case of equity securities classified as available for sale, a significant or prolonged
decline in the fair value of the security below its cost is considered in determining whether the securities are impaired.
If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between
the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized
in profit or loss – is removed from equity and recognized in the income statement. Impairment losses recognized in
the income statement on equity instruments are not reversed through the income statement. In the period under review,
the Group did not hold any investment of the above categories.
other non-current assets
Other non-current assets include work in progress, which comprises unfinished capital expenditure projects, guarantee
deposits and loans receivable maturing after 12 months.
other accounts payable
Other accounts payable comprise of current or renewable liabilities due within one year. It includes accrued liabilities,
salaries and wages and other liabilities.
Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, where
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and
where a reliable estimate can be made of the amount of the obligation. Provisions for litigations or claims are recognized
when a present obligation to a third party exists which has arisen from past events, a reasonable estimate of that obligation
can be made and in the opinion of the management is more likely than not that an economic outflow will occur.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows.
income taxes
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted by the balance sheet date. Current income tax relating to items recognized directly
in equity is recognized in equity and not in the income statement.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-86
67

68
deferred income taxes
Deferred income taxes are provided using the liability method on temporary differences at the balance sheet date between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognized for all taxable temporary differences, except:
— where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit
nor taxable profit or loss; and
— in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in
joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that
the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits
and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized except:
— where the deferred income tax asset relating to the deductible temporary difference arises from the initial recogni-
tion of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
— in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests
in joint ventures, deferred income tax assets are recognized only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available against which the temporary dif-
ferences can be utilized.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset
to be utilized. Unrecognized deferred income tax assets are reassessed at each balance sheet date and are recognized
to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the balance sheet date. Deferred income tax relating to items recognized directly in equity is recognized in
equity and not in the income statement.
Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity
and the same taxation authority.
share capital
Dividends are recognized in equity in the period in which they are approved by the respective company’s shareholders.
employment benefits
Pension obligations
The employees of the subsidiaries are eligible for retirement, invalidity and death benefits under local Social Security
schemes prevailing in the countries concerned and defined benefit and defined contribution plans provided through
separate funds, insurance plans, or unfunded arrangements. The pension plans are generally funded through regular
contributions made by the employer and the employee and through the income generated by their capital investments.
Where, due to local conditions, a plan is not funded, a liability is recorded in the financial statements.
In the case of defined contribution plans, the net periodic pension cost to be recognized in the income statement equals
the contributions made by the employer.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-87

In the case of defined benefit plans, the net periodic pension cost is assessed using the projected unit credit method. The
defined benefit obligation is measured at the present value of the estimated future cash flows. The net periodic pension
cost less employee contributions is included in the personnel expenses where the employees are located. Plan assets
are recorded at their fair value. Actuarial gains or losses beyond the corridor arising from adjustments posted, changes
in actuarial assumptions, and amendments to pension plans, are recognized over the average remaining service lives
of the related employees.
Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or whenever an
employee accepts voluntary redundancy in exchange for the benefits. The Group recognizes termination benefits when it
is demonstrably committed to either, terminating the employment of current employees according to a detailed formal
plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary
redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.
share-based payment transactions
Employees (including senior management) of the Group may receive part of their remuneration in the form of share-based
payment transactions, whereby employees render services as consideration for equity instruments (“equity settled transactions”).
In situations where some or all of the goods or services received by the entity as consideration for equity instruments
cannot be specifically identified, they are measured as the difference between the fair value of the share-based payment
and the fair value of any identifiable goods or services received at the grant date. For cash-settled transactions, the
liability is measured at each reporting date until settlement.
equity-settled transactions
The cost of equity-settled transactions with employees, for awards granted after November 7, 2002, is measured by
reference to the fair value at the date on which they are granted. The fair value is determined by an external expert using
an appropriate pricing model, further details of which are given in Note 33.
The cost of equity-settled transactions is recognized, together with a corresponding increase in equity, over the period in
which the performance and / or service conditions are fulfilled, ending on the date on which the relevant employees become
fully entitled to the award (“the vesting date”). The cumulative expense recognized for equity-settled transactions
at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s
best estimate of the number of equity instruments that will ultimately vest. The income statement charge or credit for a
period represents the movement in cumulative expense recognized as at the beginning and end of that period.
No expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional upon a
market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided
that all other performance conditions are satisfied.
Where the terms of an equity-settled award are modified, the minimum expense recognized is the expense if the terms
had not been modified. An additional expense is recognized for any modification, which increases the total fair value of the
share based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense
not yet recognized for the award is recognized immediately. However, if a new award is substituted for the cancelled
award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated
as if they were a modification of the original award, as described in the previous paragraph.
The dilutive effect of outstanding awards is reflected as additional share dilution in the computation of earnings per
share (further details are given in Note 28).
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-88
69

70
Cash-settled transactions
The cost of cash settled transactions is measured initially at fair value at the grant date using a binomial model. This fair
value is expensed over the period until vesting with recognition of a corresponding liability. The liability is remeasured at
each balance sheet date up to and including the settlement date with changes in fair value recognized in profit or loss.
Financial risk factors
The Group operates worldwide and is therefore exposed to a variety of financial risks such as foreign exchange risk,
credit risk, liquidity risk and cash flow and interest rate risk. The Group’s overall risk management program focuses on
the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance.
Special guidelines exist for risk management, and are monitored by management. The Group only concludes contracts
with selected high-quality financial institutions.
Foreign exchange risk
In order to reduce its foreign exchange exposure, the Group may enter into currency contracts to hedge against foreign
currency exchange risks, in particular relating to settlements of intercompany transactions. An evaluation based on
market values is performed regularly.
Credit risk
The Group has no significant concentrations of credit risk. Most of the sales are retail sales and made against cash
or internationally recognized credit cards or bank debit cards. It also has policies in place that other sales of products
and services are made to customers with an appropriate credit history or that the credit risk is insured by a specialized
indemnity insurer.
Interest rate risk
The Group’s exposure to market risks for changes in interest rates relates primarily to the Group’s bank debt and financial
debt.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and the availability of funding
through an adequate amount of committed credit facilities.
accounting for derivative financial instruments and hedging activities
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured
at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is
designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates derivatives as
fair value hedges, cash flow hedges, hedges of net investments in foreign operations and derivatives that do not qualify
for hedge accounting.
Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income
statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged
risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are
recognized in equity. The gain or loss relating to the ineffective portion is recognized immediately in the income statement.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-89

Amounts accumulated in equity are recorded in the income statement in the periods when the hedged item will affect
the profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial
asset or a liability, the gains and losses previously deferred in equity are transferred from equity and included in the
initial measurement of the cost of the asset or liability.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any
cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is
ultimately recognized in the income statement. When a forecast transaction is no longer expected to occur, the cumulative
gain or loss that was reported in equity is immediately transferred to the income statement.
Hedges of net investments in foreign operations
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the
hedging instrument relating to the effective portion of the hedge is recognized in equity; the gain or loss relating to the
ineffective portion is recognized immediately in the income statement.
Gains and losses accumulated in equity are included in the income statement when the foreign operation is disposed of.
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instruments
that do not qualify for hedge accounting are recognized immediately in the income statement.
related parties
A party is related to an entity if the party directly or indirectly controls, is controlled by, or is under common control with
the entity, has an interest in the entity that gives it significant influence over the entity, has joint control over the entity
or is an associate or a joint venture of the entity. In addition, members of the key management personnel of the entity or
close members of the family are also considered related parties as well as post employment benefit plans for the benefit
of employees of the entity. Transactions with related parties are conducted on an arm’s-length basis.
Financial instruments
Financial Instruments comprise all financial assets and financial liabilities. Where the market values of the individual
financial assets and liabilities are not disclosed separately, these values approximate to the carrying amounts shown in
the balance sheet.
Government Grants
Government Grants are recognized at fair value where there is reasonable assurance that the grant will be received and
all related conditions will be complied with.
borrowing costs
Borrowing costs are recognized as an expense when incurred, except for the initial transaction costs, which are set-off
from the bank loans and amortized over the period of the credit facility.
Critical accounting estimates and assumptions
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates.
It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The
Group makes estimates and assumptions concerning the future. The resulting accounting will not necessarily equal the
related actual results. The areas involving a higher degree of judgment or complexity, or areas where assumptions and
estimates are significant to the consolidated financial statements are discussed below.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-90
71

72
Concession rights
Concession rights acquired in a business combination are valued at fair value as at the date of acquisition. The useful
lives of operating concessions are assessed to be either finite or indefinite based on individual circumstances. The useful
lives of operating concessions are reviewed annually to determine whether the indefinite life assessment for those
concessions where it is assumed continues to be sustainable. The Group tests the operating concessions with indefinite
useful lives for impairment. The underlying calculation requires the use of estimates.
Brands and Goodwill
The Group tests annually for impairment in accordance with IAS 36. The underlying calculation requires the use of estimates.
Post-employment benefit plans
Dufry sponsors pension and other retirement plans in various forms. Several statistical and other factors that attempt
to anticipate future events are used in calculating the expense and liability related to the plans. The actuarial assumptions
used may differ materially from actual results due to changing market and economic conditions, higher or lower
withdrawal rates or shorter or longer life spans of participants.
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 assessment
is uncertain. The Group recognizes liabilities for tax audit issues based on estimates of whether additional taxes
will be payable. Where the final tax outcome is different from the amounts that were initially recorded, such differences
will impact the income tax and deferred tax provisions in the period in which such assessment is made.
Deferred tax assets
Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profits will be
available against which the losses can be utilized. Significant judgment is required to determine the amount of deferred
tax assets that can be recognized, based upon the likely timing and level of future taxable profits together with future tax
planning strategies. Further details are contained in note 19.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements F-91

notes
1 net sales
Different breakdowns of net sales are as follows:
in thousands of CHF 2006
2005
net sales by product category
Perfumes and Cosmetics
Wine and Spirits
Watches, Jewelry and Accessories
Confectionery and Food
Tobacco goods
Electronics
Fashion, Leather and Baggage
Literature and Publications
Toys, Souvenirs and other goods
total
net sales by market sector
Duty free
Duty paid
total
net sales by channel
Airports
Cruise liners and seaports
Downtown, hotels and resorts
Railway stations and other
total
2 sellinG exPenses, net
in thousands of CHF
Concession fees / rent fees
Credit card commissions
Advertising and commission expenses
Packaging materials
Other selling expenses
selling expenses
Concession / rent income
Commission income
Other selling income
selling income
total
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements F-92
346,852
234,590
224,222
160,656
147,751
104,526
76,958
53,605
54,598
1,403,758
1,154,961
248,797
1,403,758
1,073,852
118,187
120,567
91,152
1,403,758
2006
271,521
15,098
8,470
4,270
3,033
302,392
(4,979)
(3,784)
(7,640)
(16,403)
285,989
203,923
154,724
129,600
114,943
130,229
60,668
46,201
47,879
44,725
932,892
737,954
194,938
932,892
679,235
95,068
98,068
60,521
932,892
2005
168,312
9,434
3,231
3,722
585
185,284
(4,575)
(3,493)
(5,525)
(13,593)
171,691
73

74
3 Personnel exPenses
in thousands of CHF
Salaries and wages
Social security expenses
Retirement benefits
Other personnel expenses
total
number of full time equivalents
4 General exPenses, net
in thousands of CHF
Premises
Legal, consulting and audit fees
Repairs and maintenance
Office and administration
PR and advertising
Travel, car, entertainment and representation
EDP
Taxes, other than income taxes
Insurances
Bank fees
Franchise and management fees expenses
Franchise and management fees income
total
5 dePreCiation and amortization
in thousands of CHF
Depreciation of property, plant and equipment ( note 15 )
Amortization of intangible assets ( note 16 )
total
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-93
2006
135,552
27,081
2,918
13,918
179,469
6,526
2006
26,983
17,081
13,250
13,046
11,034
9,153
7,792
5,742
5,014
2,363
7,418
(463)
118,413
2006
26,159
23,887
50,046
2005
94,751
17,406
1,353
9,704
123,214
4,419
2005
22,482
9,002
8,170
9,700
6,676
6,498
2,983
2,054
3,147
1,928
5,584
(1,059)
77,165
2005
17,135
6,530
23,665

6 other oPerational exPenses
in thousands of CHF
Start up expenses1 Costs of closing shops or locations2 Costs of assets lost during the hurricanes3 Losses on sale of non-current assets
Bad debt, loans allowances and write offs
Consulting expenses related to special projects
Expenses for provisions
Other
total
7 other oPerational inCome
in thousands of CHF
Net gain on sale of investments1 Insurance refunds2 Release of provisions3 Release of special project costs
Gain on sale of non-current assets
Other
total
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
2006
3,016
3,202
4,797
1,612
2,612
1,714
584
4,326
21,863
1 The start-up expenses relate to companies founded this year in Belgrade, Grand Turk and Hong Kong (CHF 2.7 million).
2 These costs were incurred to close the shops in Rome (CHF 0.7 million) and in Marseille (CHF 1.3 million), and to abort the project in
Kazakhstan (CHF 0.4 million).
3 The damages of the hurricane Wilma in the Mexican subsidiaries are covered by the property insurance (see also note 7).
2006
65,198
7,859
4,968
797
301
1,489
80,612
1 The gain on sale of investments was realized through the Initial Public Offering of Dufry South America and the proportional realized profit on the
transfer of Flagship Retail Services Inc (for further details refer to note 31).
2005
1,302
–
2,160
1,761
678
778
6,679
2 Insurance compensation is for assets lost in Mexico during the hurricane Wilma. On October 20, 2005, the hurricane Wilma lasted several days over the
peninsula of Yucatan, Mexico causing severe damages to this tourist destination. Not only our shops located at the airport, seaport and down town
malls were affected, but the public infrastructure as well. The tourist and commercial activity was interrupted for many months and has been
recovering only slowly.
During 2006, Dufry has refurbished and opened again its shops, the first one in July 2006, whereas the shops at Cancun International Airport,
Charter Terminal, and the ones at the seaport Punta Langosta, Cozumel have been opened together with the respective infrastructure only in December
2006. The shops on the pier of Puerta Maya are still under construction. Most of the losses incurred by Dufry during this natural disaster have been
covered through the insurance company. The inventory damages had no impact on the net income. The damages on property, plant and equipment
generated a write-off which has been compensated by the insurance company at replacement value. The write-off of the book values has been
presented as other operational expenses and the compensation of the insurance as other operational income.
During the period of business interruption Dufry had a shortage in revenues and had operating expenses, the consequences of which are covered by the
insurance. This insurance income has been reflected as other selling income amounting to CHF 6.3 million (2005: CHF 0.9 million).
3 This income mainly relates to: a) the release of the provision made by Dufry Houston in relation to a claim to pay a minimum annual guarantee of the
current concession (CHF 1.6 million), b) the reversal of the remaining provision not used for the restructuring of Dufry Ivory Coast (CHF 1.0 million),
c) the release of the provision for a dispute regarding procurement commissions in connection with our subsidiary in the Ivory Coast after the part used
(CHF 1.0 million), and d) the release of the provision for the dispute with the insurance company regarding damages in our operations in Aruba, as it
could be successfully settled (CHF 0.4 million).
F-94
2005
2,710
–
–
–
1,031
4,773
2,206
964
11,684
75

76
8 inCome From assoCiates
Income from associates includes the share of profits of Galaco SA accounted for under the equity method which has
been disposed of in 2005.
in thousands of CHF 2006
2005
Galaco SA, Spain
–
398
9 FinanCial inCome ( exPenses )
in thousands of CHF
Interest expenses
Interest income
Foreign exchange gain, net
total
10 inCome taxes
in thousands of CHF
Consolidated earnings before income tax ( ebt )
Expected tax rate in %
Tax at the expected rate
Income not subject to income tax
Tax effect of different tax rates in other countries / regimes
Non-deductible expenses (income)
Effect of changes with regard to the recognition of tax loss carry-forwards
Non-recoverable withholding taxes
Effect of prior year adjustments
Other effects
total
Current income taxes
Deferred income taxes
total
The expected tax rate used for 2006 is 26.6% (24.8% in 2005). The increase relates mainly to the effect of including in the
average expected tax rate the one of the acquired operations in Brazil (34.0%).
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
2006
(35,735)
2,057
2,939
(30,739)
2006
138,463
26.6%
36,831
(23,163)
(8,359)
611
3,772
5,357
(590)
(576)
13,883
22,342
(8,459)
13,883
2005
(7,852)
554
1,550
(5,748)
In 2006 interest expenses include the yearly allocation of credit line commission in the amount of CHF 1.1 million, which
has been set-off from bank debt (see note 20).
F-95
2005
66,125
24.8%
16,399
(2,712)
645
(1,009)
(2,799)
–
950
1,965
13,439
16,010
(2,571)
13,439

11 Cash and Cash eqUiValents
in thousands of CHF
Cash on hand and cash at bank
Short-term deposits
total
12 trade reCeiVables, net
in thousands of CHF
Trade receivables, gross
Bad debt allowances
total
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
31. 12. 06
8,990
(1,868)
7,122
31. 12. 05
3,456
(1,264)
2,192
Bad debt allowances relate mainly to a doubtful receivable of CHF 1.0 million (2005: CHF 1.1 million) from a customer
in the Eurasia region.
13 other aCCoUnts reCeiVable
in thousands of CHF
Credit card organizations
Sales tax and other taxes
Refunds from suppliers and concessionaires
Receivables from related parties (note 25)
Insurance refunds (note 7)
Accrued income
Prepayments
Guarantee deposits
Loans receivable
Interest receivables
Other
total
Allowances
total
14 inVentories
in thousands of CHF
Inventories gross
Inventory allowances
total
31. 12. 06
99,079
3,311
102,390
Cash and cash equivalents include CHF 3.1 million (2005: CHF 3.4 million) held by subsidiaries operating in countries
with exchange controls or other legal restrictions.
31. 12. 06
21,549
20,604
18,311
6,877
5,813
6,675
4,402
2,886
1,702
831
14,689
104,339
(811)
103,528
31. 12. 06
284,302
(6,573)
277,729
31. 12. 05
5,659
16,868
14,374
4,349
–
6,589
5,625
2,406
1,085
669
9,648
67,272
(800)
66,472
31. 12. 05
204,657
(4,643)
200,014
The higher amount of inventories at December 31, 2006, is due to the acquisition of Brazil (CHF 60.3 million), Puerto Rico
(CHF 14.4 million) and new operations in Spain, Serbia, Algeria, Turks and Caicos Islands (CHF 11.7 million).
F-96
31. 12. 05
50,767
835
51,602
77

78
15 ProPerty, Plant and eqUiPment
in thousands of CHF
at cost
Balance as of 01. 01. 05
Acquisition of subsidiaries
Additions
Disposals
Currency translation differences
balance as of 31. 12. 05
accumulated depreciation
Balance as of 01. 01. 05
Acquisition of subsidiaries
Additions (note 5)
Disposals
Currency translation differences
balance as of 31. 12. 05
at cost
Balance as of 01. 01. 06
Acquisition of subsidiaries
Additions
Disposals
Currency translation differences
balance as of 31. 12. 06
accumulated depreciation
Balance as of 01. 01. 06
Additions (note 5)
Disposals
Currency translation differences
balance as of 31. 12. 06
Carrying amount as of 31. 12. 05
Carrying amount as of 31. 12. 06
in thousands of CHF
Fire insurance value
1,276
–
–
(8)
166
1,434
690
–
151
–
114
955
1,434
–
–
–
(168)
1,266
955
152
–
(185)
922
479
344
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
leasehold
FUrnitUre
ComPUter
real estate imProVements
FixtUre
hardware
VehiCles total
F-97
38,158
2,549
15,846
(5,214)
6,331
57,670
25,312
2,834
5,103
(5,208)
4,016
32,057
57,670
10,551
24,166
(6,582)
(2,174)
83,631
32,057
12,097
(3,752)
(1,281)
39,121
25,613
44,510
82,139
1,823
14,115
(24,160)
(1,675)
72,242
61,519
2,061
7,828
(23,050)
(1,602)
46,756
72,242
10,573
21,278
(8,044)
(1,719)
94,330
46,756
9,682
(4,688)
(730)
51,020
25,486
43,310
25,720
1,054
7,930
(3,955)
5,391
36,140
19,576
997
3,453
(3,820)
4,179
24,385
36,140
1,690
4,372
(4,435)
(1,789)
35,978
24,385
3,581
(2,499)
(1,075)
24,392
11,755
11,586
31. 12. 06
176,699
4,594
(82)
861
(1,662)
1,058
4,769
3,250
(4)
600
(1,537)
673
2,982
4,769
315
912
(477)
(136)
5,383
2,982
647
(363)
(85)
3,181
1,787
2,202
151,887
5,344
38,752
(34,999)
11,271
172,255
110,347
5,888
17,135
(33,615)
7,380
107,135
172,255
23,129
50,728
(19,538)
(5,986)
220,588
107,135
26,159
(11,302)
(3,356)
118,636
65,120
101,952
31. 12. 05
143,235

16 intanGible assets
in thousands of CHF
at cost
Balance as of 01. 01. 05
Additions 1
Disposals
Currency translation differences
balance as of 31. 12. 05
accumulated amortization and
impairment losses
Balance as of 01. 01. 05
Additions (note 5)
Disposals
Currency translation differences
balance as of 31. 12. 05
at cost
Balance as of 01. 01. 06
Acquisition of subsidiaries
Additions
Disposals
Currency translation differences
balance as of 31. 12. 06
accumulated amortization and
impairment losses
Balance as of 01. 01. 06
Additions (note 5)
Disposals
Currency translation differences
balance as of 31. 12. 06
Carrying amount as of 31. 12. 05
Carrying amount as of 31. 12. 06
128,494
–
–
10,683
139,177
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
ConCession riGhts
indeFinite liVes Finite liVes
brands
Goodwill
other total
–
–
–
–
–
139,177
–
–
–
390
139,567
–
–
–
–
–
139,177
139,567
49,885
75,795
(2,787)
5,236
128,129
3,981
6,412
(2,489)
1,463
9,367
128,129
529,796
1,352
(521)
(26,129)
632,627
9,367
22,464
(333)
(3,141)
28,357
118,762
604,270
38,049
–
–
–
38,049
–
–
–
–
–
38,049
–
–
–
–
38,049
–
–
–
–
–
38,049
38,049
43,714
78,547
–
1,801
124,062
–
–
–
–
–
124,062
320,610
–
(84,163)
(10,914)
349,595
–
–
–
–
–
124,062
349,595
–
2,437
–
2
2,439
–
118
–
–
118
2,439
543
10,185
(1,078)
844
12,933
118
1,423
(684)
487
1,344
2,321
11,589
1 The concession rights of Young Caribbean Distributors Ltd. (CHF 17.9 million) have been reclassified from goodwill after the performance of the
corresponding final purchase price allocation calculation.
F-98
260,142
156,779
(2,787)
17,722
431,856
3,981
6,530
(2,489)
1,463
9,485
431,856
850,949
11,537
85,762
(35,809)
1,172,771
9,485
23,887
(1,017)
(2,654)
29,701
422,371
1,143,070
79

80
Concession rights
The increase of concession rights with finite life from acquisition of subsidiaries is generated by the following subsidiaries:
in thousands of CHF
Dufry do Brasil DFS Ltda.
Alliance Duty Free Inc, Puerto Rico
total
Goodwill
The increase of goodwill from acquisition of subsidiaries is generated by the following subsidiaries:
in thousands of CHF
Dufry do Brasil DFS Ltda. and Eurotrade Ltd. (note 30)
Partial disposal of Dufry South America Ltd.
Alliance Duty Free Inc, Puerto Rico
Duty Free Caribbean (Holding) Ltd, Barbados
total
impairment testing
Concession rights with indefinite useful lives, brands and goodwill are tested for impairment each year. Concession
rights with finite useful lives are tested for impairment whenever events or circumstances indicate that the carrying
amount may not be recoverable.
impairment test of goodwill
For the purpose of impairment testing, goodwill acquired through business combinations has been allocated to the
following five categories of cash generating units (CGUs), which are also the reportable segments that are expected to
benefit from the synergies of the business combination:
in thousands of CHF
Europe
Africa
Eurasia
North America & Caribbean
South America
total CarryinG amoUnt
The recoverable amounts of goodwill for each of the above group of CGUs have been determined based on value-in-use
calculations. These calculations use cash flow projections on business plans approved by senior management covering
a five-year period, and a discount rate, which represents the weighted average cost of capital (WACC) adjusted for
regional specific risks.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-99
31. 12. 06
15,915
31,026
24,835
74,440
203,379
349,595
366,109
163,687
529,796
297,873
(84,163)
13,616
9,121
236,447
31. 12. 05
15,915
31,026
24,835
52,286
n.a.
124,062

Cash flows beyond that five-year period have been extrapolated using a steady growth rate that does not exceed the longterm
average growth rate for the respective markets in which these legal entities operate. The basis used to determine
the value assigned to the budgeted net sales, which determines the free cash flow used in the discounted cash flow
model, is the actual net sales achieved in the year 2006 and the budget 2007, increased thereafter for expected market
growth.
The following are the key assumptions used for determining the recoverable amounts for each of the above group of
CGUs as of December 31, 2006:
in %
Europe
Africa
Eurasia
North America & Caribbean
South America
Management believes that any reasonably possible change in the key assumptions on which the recoverable amounts
are based would not cause its carrying amount to exceed its recoverable amount.
impairment test of intangible assets with indefinite useful lives (concession rights and brands)
Concession rights with indefinite useful lives
For the purpose of impairment testing, concession rights with indefinite useful lives are allocated to the respective CGUs
to which it relates. The following table indicates the allocation of the concession rights with indefinite useful lives to the
group of CGUs that are also the Company’s reportable segments:
in thousands of CHF
Europe
Africa
Eurasia
North America & Caribbean
South America
total CarryinG amoUnt
2006
7.1 %
8.8 %
8.8 %
9.1 %
10.0 %
Each of the above reportable segments represents a group of CGUs for the group, for example, the region Europe includes
operating concessions in the European region, for which concession rights have been allocated and valued by the
Company. Each concession represents the cash generating unit for the company, for the purpose of testing the concession
rights with indefinite lives for impairment.
The recoverable amounts for each of the CGUs have been determined based on value-in-use calculations. These calculations
use cash flow projections on business plans approved by senior management covering a five-year period and a
discount rate, which represents the weighted average cost of capital (WACC), adjusted for country specific risks. Cash
flows beyond that five-year period have been extrapolated using a steady growth rate that does not exceed the long-term
average growth rate for the respective markets in which these legal entities operate. The basis used to determine the
value assigned to the budgeted net sales, which determines the free cash flow used in the discounted cash flow model,
is the actual net sales achieved in the year immediately before the budgeted year, increased for expected efficiency
improvements.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
Post tax disCoUnt rates
2005
5.7 %
6.6 %
6.2 %
6.1 %
n.a.
F-100
Pre-tax disCoUnt rates
2006
12.1 %
9.4 %
10.6 %
10.9 %
13.9 %
2005
8.5 %
6.7 %
7.5 %
8.5 %
n.a.
3.0 – 4.0 %
3.0 – 4.0 %
3.0 – 4.0 %
5.0 – 9.0 %
13.0–23.0 %
31. 12. 06
79,341
673
15,893
43,660
–
139,567
Growth rates For
extraPolatinG Cash Flows
2006
2005
3.0 %
3.0 %
3.0 %
3.0 %
n.a.
31. 12. 05
76,754
675
17,104
44,644
n.a.
139,177
81

82
The following are the key assumptions used for determining the recoverable amounts for each of the above group of CGUs:
in %
Europe
Africa
Eurasia
North America & Caribbean
South America
1 Depending on the country in which the concession operates.
2006
7.3 %
8.4 %
8.9 %
8.9 %
–
Management believes that any reasonably possible change in the key assumptions on which the recoverable amounts
are based would not cause its carrying amount to exceed its recoverable amount.
For Dufry Mexico in the North America and Caribbean region, there are reasonably possible changes in key assumptions
which could cause the carrying amount of the unit to exceed its recoverable amount. The actual recoverable amount
for Dufry Mexico exceeds its carrying amount by USD 5.8 million (2005: USD 1.9 million). The implications of the key
assumptions on the recoverable amount are due to the increase on sales. Management has considered the possibility
of lower than budgeted increases of sales. This may occur if anticipated passenger flows decreases resulting in a decreased
demand which cannot be offset by a higher market share. Should the Group be unable to keep the growth path
or increase the margin on the sold products so would a reduction of one percentage point reduce the carrying value by
USD 0.5 million.
Brands
For the purpose of impairment testing, the Dufry brand is not allocated to any specific CGUs or group of CGUs but is
assessed at the Group level. Management believes that the synergies from the brands are corporate in nature and to
allocate the carrying value to CGUs or group of CGUs will not reflect economic reality.
The recoverable amount is determined based on the Relief from Royalty method that considers a steady royalty stream of
0.3% post tax of the net sales projected by the Company. The net sales projections cover a period of five years with a year
on year growth rate of 12.4%. This growth rate does not exceed the long-term average growth rate for the Dufry Group.
The discount rate of 6.5% represents the weighted average cost of capital (WACC) at the Group level.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
Post tax disCoUnt rates 1
F-101
2005
6.8 %
7.4 %
8.6 %
5.7 %
n.a.
Pre-tax disCoUnt rates 1
2006
11.0 %
9.8 %
8.9 %
11.5 %
–
2005
10.8 %
8.7 %
8.6 %
8.1 %
n.a.
Growth rates For
extraPolatinG Cash Flows
2006
2005
2.0 – 4.0 %
2.0 – 4.0 %
2.0 – 4.0 %
5.0 – 9.0 %
–
1.5 % – 2.0 %
2.0 %
2.0 %
3.0 %
n.a.

17 ChanGes in PartiCiPation oF minority interests
in thousands of CHF
acquisition
Acquisition of 10% of Duty Free Caribbean Group (note 30)
Put option to acquire 20% of Duty Free Caribbean Group (note 30)
Increase participation minorities in Dufry South America (note 30 and 31)
Other acquisitions
total
18 other non-CUrrent assets
in thousands of CHF
Capital advances1 Other advances2 Guarantee deposits
Loans receivable
Other
total
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
31.12.06
7,048
5,823
6,209
1,445
23
20,548
2006
2,070
(12,843)
121,198
(152)
110,273
31.12.05
1,855
344
6,268
400
79
8,946
1 The capital advances are for projects in about 10 locations for shop fittings under construction, of which the main ones are located in the airports of
Moscow (CHF 3.4 million) and Hong Kong (CHF 1.0 million).
2 Other advances comprise long-term judicial deposits (CHF 1.4 million) and concession fees paid in advance relating to the financial periods after 2007
(CHF 2.5 million).
19 deFerred tax assets and liabilities
Certain subsidiaries have tax losses, which according to their local tax legislation allows in future to recognize a tax
credit. The use of this tax benefit can be limited in time (expiration) or by the possibility of the respective company to
generate enough taxable profits. In these cases a valuation allowance has been deducted.
Deferred tax assets relating to tax loss carry-forwards and temporary differences are recognized when it is probable that
such tax losses can be utilized in the future.
in thousands of CHF
tax loss carry-forwards by expiry date
Expiring within 1 to 3 years
Expiring within 4 to 7 years
Expiring over 7 years
total
Potential tax relief
Valuation allowances
Tax loss carry-forwards recognized in the balance sheet
F-102
31. 12. 06
1,498
12,043
45,592
59,133
18,203
(11,472)
6,731
31. 12. 05
4,890
8,570
19,542
33,002
8,802
(6,249)
2,553
83

84
in thousands of CHF
deferred tax assets
Balance as of January 1
Additions
balance as of december 31
in thousands of CHF
Tax loss carry-forwards
Inventories
Other accounts receivable
Property, plant and equipment
Intangible assets
Investments
Other tax credits
Other accounts payable
balance as of december 31
in thousands of CHF
deferred tax liabilities
Balance as of January 1
Additions
balance as of december 31
in thousands of CHF
Inventories
Other accounts receivable
Property, plant and equipment
Intangible assets
Other accounts payable
balance as of december 31
2006
42,760
123,148
165,908
2005
39,246
3,514
42,760
The increase of the deferred tax liabilities is due to the purchase price allocation of the new acquisitions in Brazil
(CHF 113.1 million) and Puerto Rico (CHF 11.6 million).
Temporary differences associated with investments in subsidiaries, associates or joint ventures, for which deferred tax
liabilities have not been recognized, aggregate to CHF 7.2 million (2005: CHF 44.7 million).
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-103
2006
7,660
7,834
15,494
2006
6,731
(1,724)
(609)
3,261
3,925
82
1,041
2,787
15,494
2006
886
347
1,246
163,307
122
165,908
2005
3,071
4,589
7,660
2005
2,553
(122)
1,869
1,649
(199)
(585)
645
1,850
7,660
2005
3,551
(79)
(176)
38,798
666
42,760

20 bank debt
in thousands of CHF
US Dollars account
Swiss Francs account
Euros account
Other currencies account
total
Accrued bank transaction costs
total
Bank debt, short-term
Bank debt, long term
total
The Group’s key credit facilities are negotiated and organized centrally, with only minor credit lines at local level. As of
December 31, 2006, the Group’s main credit facilities were long-term credit facilities of approximately CHF 650.0 million.
As of December 31, 2006, a total amount of CHF 613.2 million was drawn for cash, of which CHF 590.0 million was used
under the main credit facilities.
The main credit facilities are committed syndicated facilities, which are coordinated by ING N.V., London Branch, as
the agent, and expire in March 2011. The facilities consist of a term loan with a ratchet amortization schedule, and a
revolving credit facility with a bullet repayment at the expiry of the contract. Interest in respect of any borrowings under
these credit facilities is at a floating rate (EURIBOR or LIBOR) plus spread. These facilities contain customary financial
covenants and conditions.
An amount of CHF 21.7 million has been classified as short-term debt and relates mostly to local overdraft facilities.
CHF 585.2 million is classified as long-term debt due to the long-term nature of the credit agreements. Accrued bank
transaction costs of CHF 6.3 million relating to the structuring of the syndicated facilities have been presented net of
long-term debt.
The weighted average interest rate for the drawn main credit facilities amounting to CHF 590.0 million was 5.9% (2005:
3.5%) at the end of the period. CHF 508.5 million of these credit lines were drawn in USD with an average interest rate of
6.4% (2005: CHF 29.0 million at 5.4%), CHF 63.0 million in CHF with an average interest of 2.9% (2005: CHF 41.0 million
at 2.1%) and CHF 18.5 million in EUR with an average interest rate of 4.6% (2005: nil).
hedge of net investments in foreign operations
Included in bank debt at December 31, 2006 is an amount of USD 400 million, which has been designated as a hedge
of the net investments in Dufry America Investment SA (DAISA) and is being used to hedge the Company’s exposure to
foreign exchange risk on these investments. Gains or losses on the retranslation of this borrowing are transferred to
equity to offset any gains or losses on translation of the net investments in the subsidiaries.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-104
31.12. 06
519,146
65,140
28,170
784
613,240
(6,285)
606,955
21,725
585,230
606,955
31.12. 05
34,436
44,700
8,842
–
87,978
–
87,978
86,403
1,575
87,978
85

86
21 other liabilities
in thousands of CHF
Concession fee payables
Other service related vendors
Personnel payables
Accruals related to special projects 1
Accrued liabilities
Purchase consideration 2
Sales tax and other taxes
Payables for capital expenditure
Other
total
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
31. 12. 06
46,946
19,368
27, 736
17,010
11,547
15,366
6,629
3,890
4,688
153,180
31. 12. 05
25,831
16,829
16,674
15,937
6,029
15,750
5,281
–
6,739
109,070
1 For professional services rendered in relation with the Initial Public Offering of Dufry South America Ldt and the acquisition of the Puerto Rico
companies.
2 This liability includes outstanding purchase considerations for acquisitions of Dufry Investment Ltd (CHF 2.6 million) and the liability for the exercise
of the put option to acquire 20% of Duty Free Caribbean (Holdings) Ltd (CHF 12.8 million) (see note 30).
F-105

22 ProVisions
in thousands of CHF
Law suits and duties
Dispute on contracts
Reorganization costs
Other
total
in thousands of CHF
Law suits and duties
Dispute on contracts
Reorganization costs
Other
total
balanCe as oF
01. 01. 05
2,854
7,787
4,312
1,041
15,994
balanCe as oF
01. 01. 06
1,271
5,197
3,181
964
10,613
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
inCreased
71
1,704
1,981
69
3,825
inCreased
Utilised
(1,783)
(4,871)
(1,622)
–
(8,276)
released to
inCome
statement
–
–
(1,532)
(213)
(1,745)
CUrrenCy
eFFeCt
Management believes that its total provisions are adequate based upon currently available information. However, given
the inherent difficulties in estimating liabilities in the below described areas, it cannot be guaranteed, that additional or
lesser costs will be incurred beyond or below the amounts provisioned.
law suits and duties
The provision covers uncertainties related to law suits in respect of taxes and duties in approximately ten countries,
whereby the provisions of no country exceeds CHF 0.3 million. The increase amounting to CHF 0.3 million relates to new
disputes in respect of sales taxes in Algeria. After the closing of the shops in France the Group could settle the claim
with the tax authorities, and the subsidiary paid CHF 0.2 million, and the remaining part of the provision amounting to
CHF 0.3 million was released.
dispute on contracts
Dufry in Belarus could be requested to pay CHF 0.2 million, based on an agreement for exclusivity rights, which were still
not obtained. The dispute of the subsidiary in the Ivory Coast in respect of procurement commissions could be reduced
from CHF 1.9 million to CHF 0.1 million after a payment of CHF 0.8 due to the renegotiation of the former agreement.
The provision of CHF 1.6 million of the subsidiary in Houston referring to a payment of a minimal annual guarantee of the
ongoing concession has been released. In the claim held between Dufry Paris and the concessionaire, the judge ruled in
favor of the latter, and Dufry Paris paid the requested amount of CHF 1.4 million.
reorganization costs
The subsidiary in France used the full provision of CHF 0.9 million for closing the shops and the head office. Dufry’s
management has restructured its operations in the Ivory Coast. After releasing CHF 1.0 million, a provision of CHF 0.5
million remains to cover the estimated expenses related to the closure and the loss on disposal of assets to be incurred
next year. For the closure of the non-profitable shop in the World Trade Center in Amsterdam the provision of CHF 0.5
million was released.
other
The dispute with the insurance company regarding damages in our operations in Aruba could be successfully settled and
the provision of CHF 0.4 million could be released. The existing provision amounting to CHF 0.4 million relates to legal
costs in Dufry Tunisia.
337
221
–
6
564
F-106
Utilised
(279)
(1,395)
(1,358)
(32)
(3,064)
released to
inCome
statement
(583)
(3,503)
(1,400)
(572)
(6,058)
129
577
42
67
815
CUrrenCy
eFFeCt
(19)
(88)
36
(9)
(80)
balanCe as oF
31.12.05
1,271
5,197
3,181
964
10,613
balanCe as oF
31.12.06
727
432
459
357
1,975
87

88
23 Post-emPloyment beneFit obliGations
The personnel of the Dufry Group are insured against the risk of old age and disablement in accordance with the local
laws and regulations. A description of the significant retirement benefit plans is as follows:
switzerland
The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable
to the period over which the obligation is to be settled.
The principal assumptions for the actuarial computation are as follows:
in %
Discount rates
Expected return on plan assets
Future salary increases
Future pension increases
Average retirement age ( in years )
Net pension costs
The net pension costs developed as follows:
in thousands of CHF
Current service costs
Interest costs
Expected return on plan assets
Periodic pension costs
Employees’ contribution
net pension costs
employer’s contribution
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
2006
3.00 %
4.25 %
1.50 %
1.00 %
64
2006
1,259
482
(725)
1,016
(574)
442
893
2005
3.00 %
4.25 %
1.50 %
1.00 %
64
Dufry has a defined benefit pension plan based on the actual salary of the employee, covering substantially all of its employees
in Switzerland, which requires contributions to be made to a separate legal entity, the administrative fund. These
benefits are unfunded. The following tables summarize the components of net benefit expenses recognized in the income
statement and the funded status and amounts recognized in the balance sheet for the plan:
The total of the pension costs of the Group is included in personnel expenses (retirement benefits). The actual return of
plan assets is CHF 0.6 million (2005: CHF 1.3 million).
Dufry expects to contribute CHF 1.0 million to its defined benefit pension plans in 2007.
F-107
2005
935
436
(587)
784
(438)
346
674

Funded status
in thousands of CHF
Fair value of plan assets as of January 1
Expected return
Contribution by employer
Contribution by employees
Benefits received / (paid)
expected fair value of plan assets as of december 31
Actuarial gain / (losses)
Fair value of plan assets as of december 31
Defined benefit obligation (PBO) as of January 1
Current service costs
Interest costs
Benefits received / (paid)
expected defined benefit obligation as of december 31
Actuarial losses on obligation
defined benefit obligation (Pbo) as of december 31
Funded status
Less unrecognized actuarial gain
net (liability) / net asset in balance sheet
Reconciliation to the balance sheet
The movement in the pension liability is recognized in the balance sheet as follows:
in thousands of CHF
Net liability as of January 1
Periodic pension costs
Contributions paid
net (liability) / net asset as of december 31
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
2006
17,048
725
893
574
(335)
18,905
(156)
18,749
16,069
1,259
482
(335)
17,475
817
18,292
457
159
298
2006
(153)
(1,016)
1,467
298
2005
13,801
587
674
438
812
16,312
736
17,048
13,407
935
436
812
15,590
479
16,069
The net asset as of December 31, 2006, amounting to CHF 0.3 million is reflected in the account other accounts
receivables.
F-108
979
1,132
(153)
2005
(481)
(784)
1,112
(153)
89

90
Amounts for the current and previous period are as follows:
Dufry in thousands Annual Report of CHF2006
— Notes to the Consolidated Financial Statements
Defined benefit obligation
Plan assets
Surplus
Experience adjustments on plan liabilities
Experience adjustments on plan assets
italy
In Italy, an unfunded defined benefit plan exists. The social pension contributions owed by the employer are based on
the number of years the respective employee worked with the respective Italian subsidiaries. The amount accrued as of
December 31, 2006, amounted to CHF 9.7 million (2005: CHF 8.7 million). The benefits for the insured Italian employees
have been valued in 2006 using an independent actuarial valuation, based on a discount rate of 4.0% (2005: 4.0 %), an
expected increase in salary of 3.0 % (2005: 3.0 %) and an inflation rate of 1.5% (2005: 1.5 %).
other countries
Further smaller pension plans also exist in other countries. For these plans, a total amount of CHF 0.8 million was accrued
as of December 31, 2006 (2005: CHF 0.9 million).
Post-employment benefit obligations
Dufry in thousands Annual Report of CHF2006
— Notes to the Consolidated Financial Statements
Switzerland
Italy
Other countries
total
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
2006
18,292
18,749
457
817
(156)
The major categories of plan assets as percentages of the fair value of the total plan assets are as follows:
Dufry in % Annual Report 2006 — Notes to the Consolidated Financial Statements
Shares
Obligations
Rented properties
Other
total
F-109
2006
26 %
45 %
24 %
5 %
100 %
2006
–
9,704
808
10,512
2005
16,069
17,048
979
479
736
2005
24 %
44 %
24 %
8 %
100 %
2005
153
8,707
844
9,704

24 ContinGent liabilities
Contingent liabilities
The Group enters into long-term agreements with port authorities to guarantee the use of concessions rights. Most of
the concessionaires require a minimum annual guarantee based on sales, passengers or other indicators of operational
level. In case of early termination Dufry’s subsidiaries can be required to indemnify the port authorities for lost earnings.
The Group or their subsidiaries have granted these warranties regarding the performance of certain long-term contracts
directly or through third parties. As per December 31, 2006 no request for fulfillment of such contingent liabilities are
pending.
The Group is contingently liable for a remaining amount of CHF 2.9 million (2005: CHF 3.2 million) in relation to the purchase
of Emerald Distributors Ltd by Duty Free Caribbean (Holdings) Ltd. Under the terms of the purchase agreement,
the purchase price was dependent on the consolidated results of Duty Free Caribbean Emeralds (St Lucia) Ltd maintaining
a certain level of earnings before depreciation, amortization and interest but after taxes. On attaining the level of
earnings in any one year as per the agreement, an amount of CHF 1.5 million (USD 1.2 million) is payable to the vendor
that year. The remaining two payments can become due in any year up to March 31, 2010.
The subsidiary in Houston has a dispute of CHF 1.5 million regarding the payment of a minimal annual guarantee of past
years of the current concession.
The court in Naples decided against Dufry Italia SpA in a dispute with the local customs in respect of the vendor control
limits. This is the third claim made by the authorities in this regard after the two previous claims were dismissed by the
courts. For this reason, it is deemed unlikely that the claim will be successful.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements F-110
91

92
25 related Parties and related Party transaCtion
The substantial relationships for the Group are disclosed as follows:
Advent International Corp. as well as entities under their control participated in the common acquisition of our business
in Brazil (incl. Eurotrade) at the end of March 2006 (see note 30). In December 2006, they sold their participation in Dufry
South America Ltd. on the Initial Public Offering in the Brazilian and Luxembourg stock exchanges. Their share in the
related expenses of this Initial Public Offering presents a balance receivable of CHF 6.5 million.
Dufry Mexico SA de CV operates shops at Mexico City’s Benito Juarez Airport under agreements with Inmobiliaria
Fumisa, SA de CV. Advent International Corporation, the entity that manages the funds that control the Company’s majority
shareholder, Travel Retail Investments SCA, manages other funds that have a 50% shareholding in Inmobiliaria
Fumisa, SA de CV with the remaining 50% owned by a co-investor. In addition, three of the members of the Company’s
Board of Directors are also directors of Inmobiliaria Fumisa, SA de CV. The Mexico City concessions are due to remain
in force until varying dates between 2010 and 2013. Under the agreements, the Company is required to compensate
Inmobiliaria Fumisa, SA de CV through a monthly fixed rental fee. In 2006, total rent paid amounted to CHF 20.1 million
(2005: CHF 7.8 million).
In addition to his employment relationship with the Group, Mr Dante Marro, the Chief Operating Officer for region Europe
and member of the Group Executive Committee, acting through GSA Srl Gestione Spazi Attrezzati (GSAS), was granted
rights of usufruct over 10% of the Company’s shareholding in both its 60% majority owned operating subsidiary Dufrital
SpA and its wholly owned subsidiary Dufry Shop Finance Limited Srl in 2002. The rights of usufruct granted to GSAS,
which will expire at the latest on December 31, 2020, permit it to enjoy the benefits of share ownership, including the
receipt of dividends, even though the shares remain vested in a subsidiary. Upon expiration of the rights of usufruct,
provided that the total profits of the aforementioned companies shall not have been declared as dividends, GSAS shall
be entitled to receive 65% and 10%, respectively, of all withheld profits accumulated as reserves on the balance sheets
of Dufrital SpA and Dufry Shop Finance Limited Srl as at December 31, 2020. In 2006, the amount paid amounted to CHF
0.2 million (2005: CHF 0.2 million).
Further, the former owners of the Dufry Travel Retail business have agreed with the Group to assume the obligations
and liabilities with respect to any claims against the Group by Mr Dante Marro arising from certain stock and other rights
claimed by him, which originate prior to the acquisition of 75% of the Dufry Travel Retail business by Dufry Ltd in March
2004, except for claims relating to his current employment relationship, the aforementioned rights of usufruct and any
claims that may arise against the Group as and from March 2004.
In addition to his employment relationship with the Group, Mr José González, the Chief Operating Officer for region North
America & Caribbean and member of the Group Executive Committee, owns 26.3% of the share capital of the subsidiary
Puerto Libre International SA (PLISA). PLISA operates the Group’s concessions at Managua Airport, Nicaragua and its
Nicaraguan border shops.
Pevazi Inc. supplied goods in the amount of CHF 0.2 million (2005: CHF 0.1 million). Pevazi Inc. is related to a member
of the Board of Directors of Dufry Ltd.
At the exception of Mr Xavier Bouton who received CHF 0.3 million for strategic consulting services provided to the Company
during the year 2006, there are no additional fees or remunerations billed to Dufry Ltd or one of its subsidiaries
by members of the Board of Directors and the Group Executive Committee or parties closely linked to such persons as
defined in the SWX directive.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-111

Compensations expensed to key management personnel of the Group and the regions were made as follows:
in thousands of CHF
Short-term employee benefits
Post-employment pension and other benefits
The short-term employee benefits include salaries, variable remuneration and a special bonus for the completion of
the Initial Public Offering of Dufry Ltd in 2005 and for the completion of the acquisition of the Brazilian business and
Eurotrade and of the Initial Public Offering of Dufry South America Ltd in 2006.
In addition, the expense related to the Restricted Stock Unit plan for the key management amounts CHF 1.5 million in 2006.
26 PrinCiPal ForeiGn exChanGe rates aPPlied For ValUation and translation
31. 12. 06
31. 12. 05
in CHF aVeraGe rates ClosinG rates aVeraGe rates ClosinG rates
1 USD
1.2536
1.2200
1.2454
1.3125
1 EUR
1.5732
1.6100
1.5484
1.5575
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-112
2006
8,173
549
2005
7,173
496
93

94
27 seGment inFormation
The Group’s risks and returns are predominantly affected by the fact that it operates in different countries. Therefore, the
Group reports segmental information in its financial statements in the same way as it does internally to senior management,
i.e. using geographical areas as its primary segments. There is only one business segment, travel retail.
The geographical segments reported are broken down as follows: Europe (incl. HQ), Africa, Eurasia, North America &
Caribbean and South America.
in thousands of CHF
Years ended December 31
Net sales – third parties
Net sales – intercompanies
net sales
Advertising income
turnover
earnings before interest and taxes (ebit)
Income from associates
Financial income (expenses)
Income taxes
net earninGs
Equity holders of the parent
Minority interest
Segment assets
Unallocated corporate assets
total assets
Segment liabilities
Unallocated corporate liabilities
total liabilities
Capital expenditure
Depreciation and amortization
Non-cash result other than depreciation
Number of full time equivalents (as of Dec 31)
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
eUroPe (inCl. hq) aFriCa eUrasia
2006
370,490
61,566
432,056
13,783
445,839
83,168
386,277
124,571
24,056
8,898
5,896
983
2005
327,513
58,097
385,610
11,469
397,079
21,832
339,911
131,360
18,877
6,532
7,242
995
2006
146,389
–
146,389
94
146,483
14,250
83,768
43,178
7,082
7,083
4,639
734
2005
127,919
–
127,919
138
128,057
10,105
78,397
38,863
3,614
5,994
1,696
667
2006
187,220
–
187,220
1,792
189,012
17,458
Transfer prices between segments are set on an arm’s length basis. Segment revenue, segment expense and segment
result include transfers between segments. Those transfers are eliminated in consolidation.
Due to the change in the composition of the segments, prior years’ figures have been restated to make them comparable
with 2006 figures.
F-113
81,506
31,615
6,209
4,288
1,273
787
2005
149,941
63
150,004
1,361
151,365
16,181
76,142
23,343
4,558
3,578
1,884
640

north ameriCa
& Caribbean
2006
328,029
7,739
335,768
4,911
340,679
14,207
525,832
68,893
18,110
10,962
3,151
2,345
2005
280,423
7,940
288,363
3,830
292,193
25,087
287,255
88,109
71,242
7,286
1,404
1,941
soUth ameriCa
2006
371,630
–
371,630
11,992
383,622
40,801
504,767
118,194
6,808
18,815
2,160
1,677
2005
47,096
–
47,096
229
47,325
1,570
23,429
12,787
771
275
520
176
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
eliminations total
2006
–
(69,305)
(69,305)
(35)
(69,340)
(682)
(196,974)
(57,516)
–
–
–
–
2005
–
(66,100)
(66,100)
(89)
(66,189)
(3,300)
(140,017)
F-114
(58,227)
–
–
–
–
2006
1,403,758
–
1,403,758
32,537
1,436,295
169,202
–
(30,739)
(13,883)
124,580
107,714
16,866
1,385,176
390,302
1,775,478
328,935
791,397
1,120,332
62,265
50,046
17,119
6,526
2005
932,892
–
932,892
16,938
949,830
71,475
398
(5,748)
(13,439)
52,686
41,560
11,126
665,117
165,973
831,090
236,235
148,819
385,054
99,062
23,665
12,746
4,419
95

96
28 earninGs Per share
basic
Basic earnings per share are calculated by dividing the net earnings attributable to equity holders of the parent by the
weighted average number of shares outstanding during the year. The calculation of earnings per share for all periods
presented has been adjusted to include the impact of the share split as of November 17, 2005 (refer to note 32 for a
detailed description of the share split).
in thousands of CHF / Quantity
Net earnings attributable to equity holders of the parent
Weighted average number of ordinary shares outstanding
Basic earnings per share in CHF
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
2006
107,714
14,063
7.66
2005
41,560
10,454
3.98
diluted
Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of
the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average
number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary
shares.
in thousands of CHF / Quantity
Net earnings attributable to equity holders of the parent
Weighted average number of ordinary shares outstanding
adjusted for the effect of dilution
Diluted earnings per share in CHF
2006
107,714
14,163
7.61
2005
41,560
10,454
3.98
dividends paid and proposed
Dufry Ltd has not distributed dividends in 2005. The Board of Directors proposes to the Ordinary General Meeting of
Dufry Ltd the approval of a distribution of a final dividend for 2006 of CHF 1.00 per share. This proposed dividend amounting
to CHF 14,062,500.– has not been recognised as a liability as of December 31, 2006.
F-115

29 nUmber oF retail shoP ConCessions
Dufry companies enter into arrangements with airports, seaports, railway stations and other areas to operate shops,
which sell part or the total of the product-range mentioned in note 1. Most of the concession providers are public or
semi-public owned companies.
Such shop concession arrangements involve the concession providers conveying for the period of the concession to Dufry
shops acting as operators the right to sell a predefined assortment of products to a traveling public.
The arrangements typically define:
— the duration
— the nature of remuneration
— the assortment of products to be sold
— the location
They may encompass one or several shops and are awarded in a public tender or in a negotiated deal.
The depreciation of the tangible assets in such operations is done over the useful life or the duration of the arrangements,
whatever is shorter.
In such cases where the remuneration is defined in form of a guaranteed minimum, such arrangement may fulfill the
definition of an onerous contract. In such instance, the discounted net future cash flow is assessed and provisioned.
Actually, no concession agreements are provided for.
Dufry Group operates 444 retail shops in 37 countries at year-end. They operate under the following concession schemes
in force in the following years including extension:
total number of shops
with concession agreements existing in :
of which fixed fees and / or
proportional fees 1
of which proportional fees to sales
of which fixed fees
444
236
116
92
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
2006 2007 2008 2009 2010 2011+
1 There are two possible combinations: a) the agreement includes a fixed fee and additionally proportional fees to sales, or b) the higher of a fixed fee or
proportional fee.
428
227
114
87
F-116
395
211
109
75
364
186
108
70
303
128
108
67
290
118
106
66
97

98
30 new oPerations
During 2006, Dufry started new operations in Spain, Serbia, Algeria, as well as in the Caribbean Islands of Jamaica,
St John and Turks and Caicos Islands and acquired the following companies:
1. minority interests in duty Free Caribbean (holdings) ltd
As of February 2, 2006, Dufry acquired 4.6% of the voting shares of Duty Free Caribbean (Holdings) Ltd (DFC) for a price
of USD 5.5 million from the minority shareholders of DFC. Dufry also subscribed the sum of USD 13.0 million toward the
issuance of additional shares of DFC. Both transactions resulted in Dufry’s ownership interest to increase from 50% at
the beginning of the year to 60% at December 31, 2006. The difference between the book value of the additional interest
acquired and the consideration, of CHF 9.1 million has been recognized as goodwill.
The minority shareholder has an option up to December 31, 2007 to sell to the stock market 20% of the share capital of
Duty Free Caribbean (Holdings) Ltd or, in the event that the company shall not be publicly traded on December 31, 2007
has an option to sell to the Dufry Group up to 20% of the share capital of the company for a total price based on a valuation
of a multiple of earnings before interest, taxes, depreciation and amortization (EBITDA) minus net interest bearing
debt. Dufry Group has recognized CHF 12.8 million as an other liability for the fair value of this option in its consolidated
balance sheet as of December 31, 2006.
2. acquisition of operations in brazil
At the end of March 2006, the Group acquired 80% ownership interest in Brasif Duty Free Shop Ltd and subsidiaries (Brasif)
in Brazil as well as Eurotrade Ltd, in Cayman Islands (Eurotrade). Brasif and its subsidiaries are retail companies.
The fair value of the identifiable assets and liabilities of the acquired companies as at the date of acquisition and the
resulting goodwill were determined as follows:
in thousands of USD
Cash and cash equivalents
Other accounts receivable
Inventories
Other assets
Concession rights
Non-current assets
assets
Trade payables
Financial debt
Other accounts payable
Deferred tax liabilities
Minority interest
Equity
liabilities and eqUity
Fair value of net assets
Dufry’s share in the net assets
Goodwill arising on acquisition
total aCqUisition Costs
in thousands of CHF
Goodwill
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-117
Fair ValUe
6,266
24,573
37,749
408
284,505
19,956
373,457
31,255
2,812
20,721
96,555
(34)
222,148
373,457
222,148
177,718
231,378
409,096
297,873
CarryinG ValUe
6,266
24,573
37,749
408
1,121
19,354
89,471
31,255
2,812
20,721
–
(34)
34,717
89,471

The acquisition costs for Dufry of USD 409.1million comprised a cash payment of USD 402.3 million and costs of USD 6.8
million directly attributable to the acquisition.
The total purchase price of USD 500 million for 100% ownership interest was financed through a structured bank financing
of USD 400 million provided by the Dufry Group and a contribution of USD 100 million provided by Dufry South
America Investment’s minority shareholder, the funds managed by Advent International Corp. As of April 1, 2006, Dufry
obtained the control of these newly incorporated companies.
The structured bank financing shall also provide Dufry with additional means for further expansions and growth.
Cash outflow on acquisition
in thousands of USD
Net cash acquired with the subsidiary
Cash paid
Acquisition costs
net cash outflow
in thousands of CHF
net cash outflow for the 80% acquired
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
(6,266)
502,896
8,475
505,105
518,752
From the date of acquisition, the acquired companies have contributed CHF 301 million to the net sales of the Group and
CHF 39 million to the operating profit of the Group. If the combination had taken place at January 1, 2006, the acquired
companies would have contributed CHF 387 million to the net sales of the Group and CHF 43 million to the operating
profit of the Group.
The goodwill of USD 231.4 million is attributed to the expected synergies and other benefits from combining the assets
and activities of the acquired companies with those of the Group.
F-118
99

100
3. acquisition of operations in Puerto rico
On December 17, 2006, the Group acquired 100% of the share capital of 8 Caribbean companies, namely Alliance Duty
Free, Inc, ABC Netherlands Inc, P&B Inc domiciled in Puerto Rico, Perfume Palace Inc and the Alexis Corp., domiciled
in St Thomas, DFI Aruba domiciled in Aruba, DFI Bonaire N.V. domiciled in Bonaire and LJB Cosmetics N.V. domiciled in
St Maarten for a total consideration of USD 157.0 million. The total purchase price was financed through the proceeds
of the Initial Public Offering of Dufry South America Ltd.
The acquisition has been accounted for using the purchase method of accounting. The fair value of the identifiable
assets and liabilities of the acquired companies as at the date of acquisition and the resulting goodwill were determined
preliminary as follows:
in thousands of USD
Cash and cash equivalents
Other accounts receivable
Inventories
Other assets
Concession rights
Non-current assets
assets
Trade payables
Other accounts payable
Deferred tax liabilities
Equity
liabilities and eqUity
Fair value of net assets
Goodwill arising on acquisition
total acquisition costs
in thousands of CHF
Goodwill
Fair ValUe
8,597
2,133
12,302
522
135,267
3,015
161,836
4,367
1,130
9,469
146,870
161,836
146,870
11,079
157,949
13,616
CarryinG ValUe
8,597
2,133
12,302
522
–
3,015
26,569
4,367
1,130
–
21,072
26,569
The total acquisition costs of USD 158 million comprised a cash payment of USD 150 million in 2006, the commitment
to pay USD 7.0 million to the former owner over the next seven years (which have been discounted at 11.25% p.a.) and
transaction costs of USD 3.0 million attributed to this acquisition.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements F-119

Cash outflow on acquisition
in thousands of USD
Net cash acquired with the subsidiary
Cash paid
Acquisition costs
net cash outflow
in thousands of CHF
net cash outflow
aUdited
(8,597)
150,000
3,018
144,421
174,764
From the date of acquisition, the acquired companies have contributed CHF 4.5 million to the net sales of the Group and
CHF 0.9 million to the operating profit of the Group. If the combination had taken place at January 1, 2006, the acquired
companies would have contributed CHF 103 million to the net sales of the Group and CHF 20 million to the operating
profit of the Group.
The goodwill of USD 11.1 million is attributed to the expected synergies and other benefits from combining the assets
and activities of the acquired companies with those of the Group.
On December 4, 2006 Dufry acquired from Corporation DFSA, the minority interest holder of Weitnauer Bolivia SA, its
remaining 40% share for a price of USD 0.5 million. Dufry South America Ltd is thereafter holding 100% of W. Bolivia
SA. The net cash outflow was only of USD 0.3 million, since the rest was compensated with advance payments done to
Corporation DFSA in prior years.
acquisition of 2005
Purchase of the minority share of Dufry International Ltd and Dufry Investment Ltd
On July 25, 2005, Dufry acquired the remaining 25% of the shares of Dufry International Ltd and Dufry Investment Ltd for
a first consideration of CHF 90.0 million. On November 14, 2005, Dufry Ltd agreed to pay an additional and final consideration
to the former shareholders in relation to the above mentioned acquisition that brought the total consideration to
CHF 128.0 million. This transaction generated a goodwill of CHF 80.2 million in accordance with the parent entity extension
method. In addition, a non-compete agreement was recognized in the amount of CHF 1.8 million.
Purchase of the subsidiaries of Young Caribbean Jewellery Ltd
With effective date October 1, 2005, the Group acquired through the Duty Free Caribbean Group 100% of 8 subsidiaries
of Young Caribbean Jewellery Company Ltd for a net purchase consideration of USD 12.0 million. The majority of the
payments to settle the acquisition were due in 2006.
The fair values of the assets and liabilities acquired were broken down to the following positions: The assets and liabilities
related mainly to inventories (USD 13.4 million), accounts payable (USD 7.9 million), and loans payable (USD 2.8
million). The net cash position amounted to USD 0.6 million owed to banks as a short-term bank overdraft. The turnover
and net earnings recognized in the consolidated income statement ending December 31, 2005 from the acquired entities
amounts to CHF 10.6 million and CHF 1.1 million respectively. The total of all net assets acquired had a fair value of
USD 2.1 million. As such, the preliminary assessment led to a goodwill recognized to generate synergies between the
acquired and the existing business of USD 9.9 million.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-120
101

102
31 disPosal oF sUbsidiaries and other inFormation
1. disposal of duty Free haifa ltd
On July 1, 2006, Dufry International Ltd sold its 60% shares in Duty Free Haifa Ltd for CHF 0.7 million. At the time of the
sale the net cash disposed amounted to CHF 0.6 million. The transaction generated a net loss on sale of subsidiary of
CHF 0.5 million.
2. reorganisation of dufry south america investments sa, Flagship retail services inc and w. bolivia sa
Dufry Group had 100% ownership interest in Flagship Retail Services Inc. (“Flagship”) and 60% of W. Bolivia SA. In preparation
for the Initial Public Offering in Luxembourg and Brazil, Dufry set up a new company called Dufry South America
Ltd, Bermuda (DSA) with 80% ownership interest.
At September 29, 2006, DSA entered into a subscription agreement with Dufry, whereby Dufry subscribed to 2,249,176
new common shares of DSA having a par value of USD 0.012 per share (resulting in Dufry’s ownership interest increasing
to 80.7%) in exchange of the entire ownership interest of Flagship, and 80% of Dufry South America Investments SA held
by Dufry. As a result of this transaction, the group’s ownership interest in Flagship was reduced from 100% to 80.7%,
thereby resulting in a deemed disposal of 19.3% ownership interest in Flagship. Dufry’s 60% participation in W. Bolivia
SA was sold at such time for a consideration of USD 0.5 million.
Under the parent entity extension method, the Group recognized a gain of CHF 4.2 million representing the difference
between the carrying value of the additional ownership interest in DSA and 19.3% of net assets of Flagship, in its consolidated
income statement for the year ended December 31, 2006. Dufry South America Investments SA was brought
into DSA at book values.
3. disposal of shares in dufry south america ltd through initial Public offering
On 20 December, 2006, Dufry Group disposed 23.3% of its ownership interest in Dufry South America Ltd (DSA) through
an Initial Public Offering in Luxembourg and Brazil at a price of USD 12.50 per share. As a result of the IPO, the Group’s
ownership interest in DSA was reduced from 80.7% to 57.4%. Under the parent entity extension method, the Group recognized
a gain of CHF 61.0 million representing the difference between the net proceeds received and Group’s share of
identifiable assets and goodwill disposed, in its consolidated income statement for the year ended December 31, 2006.
The net proceeds of this transaction have been CHF 227.9 million.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-121

32 eqUity
outstanding share capital
As of January 1, 2005, the share capital was made up of 4,500,000 registered shares with a nominal value of CHF 10
each. On July 25, 2005, additional 1,500,000 registered shares with a nominal value of CHF 10 each were issued. On
November 17, 2005, each share with a nominal value of CHF 10 was split into two shares, each with a nominal value of
CHF 5. On December 5, 2005, for purposes of the Initial Public Offering (IPO), additional 2,062,500 shares were issued,
each with a nominal value of CHF 5. These transactions led to a share capital of CHF 70.3 million with 14,062,500 outstanding
shares, each with a nominal value of CHF 5 as of December 31, 2005.
The share capital of CHF 70.3 million comprises of 14,062,500 outstanding shares, each with a nominal value of CHF 5
as of December 31, 2006.
Proceeds from initial Public offering (iPo)
In December 2005, the Company completed an Initial Public Offering (IPO) of 2,062,500 ordinary shares offered at CHF 80
per share. The public offer was fully subscribed and resulted in net proceeds of CHF 146.5 million.
authorized and conditional share capital
As per Dufry Ltd’s extraordinary shareholders meeting of November 17, 2005, an authorized capital of CHF 20.5 million
and a conditional capital in the maximum amount of CHF 7.5 million were created. During the Board of Directors meeting
from December 5, 2005, it was decided to use CHF 10.3 million of the authorized capital and to increase Dufry Ltd’s
share capital by that amount.
At an extraordinary shareholders meeting on November 23, 2006, shareholders approved the Board of Directors proposal
to increase the amount of the previously existing authorized share capital from CHF 10.2 million to CHF 21.1 million
and to set the duration of such authorized capital until November 23, 2008.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements F-122
103

104
33 eVents aFter the balanCe sheet date
restricted stock Unit Plan (rsU)
In connection with Dufry’s Initial Public Offering dated November 2005 share options are granted to Senior Executives
as of January 1, 2006. This share plan grants to the participants a right to receive on January 1, 2008, free of charge, up
to approximately 100,000 RSU’s in the aggregate, based upon the offer price per share of CHF 80. The rights granted
vested after the first anniversary of the grant day, on January 1, 2007, if the share price at the date of vesting is higher
than CHF 80.80.
The fair value of the options is estimated at the grant date using a binomial pricing model, taking into account the terms
and conditions (risk less interest rate of 1.43% and a volatility of 40%) upon which the instruments were granted. The
contractual life of each option granted is two years. The expected volatility reflects assumptions, that the historical volatility
is indicative of future trends, which may also not necessarely be the actual outcome. There are no cash settlement
alternatives. An accrual of CHF 2.5 million has been done affecting the reserves account in equity.
In connection with the Dufry South America’s (DSA) Initial Public Offering, the Board of Directors of DSA approved a
restricted stock option plan for certain members of the senior management of DSA. The rights granted may vest on the
one-year anniversary of this offering provided if the share price as quoted on the Luxembourg stock exchange on the date
of the vesting is equal to or higher than 101% of our Initial Public Offering price (USD 12.50). The relevant share price for
the purposes of vesting shall be the average price per share on the Luxembourg stock exchange for the ten trading days
immediately preceding the potential vesting date. If such average price per share at the respective vesting dates is below
the level of 101% of the share price at grant, no rights will vest and, as a result, no shares will be allocated. In addition,
following the first anniversary of the granted date, the rights may be subject to an additional one-year vesting period.
From an economic point of view, the rights under the plan are stock options with an exercise price of nil. Stock options
granted under the plan will be forfeited should the plan participant cease to be our employee during the vesting period.
There are no cash settlement alternatives.
over-allotment option (from the iPo of dufry south america ltd)
On January 21, 2007 the over-allotment option of 4,129,567 shares of Dufry South America Ltd, Bermuda granted to the
banks participating in the Initial Public Offering was excercised. The expected effect on the consolidated financial statements
of the Group in 2007 is a net income of USD 14.7 million.
Dufry Annual Report 2006 — Notes to the Consolidated Financial Statements
F-123

most imPortant aFFiliated
ComPanies
as oF deCember 31, 2006
eUroPe
dufry ltd.
Dufry Investment Ltd.
Dufry International Ltd.
Dufry Travel Retail Ltd.
Dufry Basel-Mulhouse Ltd.
Dufry Samnaun Ltd.
Dufrital SpA
Cid Italia SpA
Dufry Italia Spa
Dufry Shop Finance Ltd. Srl
Dufry Islas Canarias SL
Dufry France SA
Food Village ( Schiphol ) BV
Dufry Hellas Ltd.
aFriCa
Dufry Tunisie SA
Dufry Maroc SARL
Dufry & G. T. D. C. Ltd.
eUrasia
Dufry East OOO
Dufry Sharjah Ltd.
Dufry Singapore Pte Ltd.
Dufry Bel
north ameriCa & Caribbean
Dufry America, Inc.
Dufry America Services, Inc.
Dufry Houston DF & Retail Part.
Dufry Newark Inc.
Dufry New York Retail Partnership
Dufry Mexico SA de CV
Dufry Frontera SA de CV
Dufry Aruba N. V.
Dufry Trinidad Ltd.
Inversiones TUNC, SA
Duty Free Caribbean (Holdings) Ltd.
Duty Free Caribbean Limited
City Associated Enterprises Ltd.
CEI (Barbados) Ltd.
DFC Retail (St Lucia) Ltd.
DFC Emeralds (St Lucia) Ltd.
CEI (St Lucia) Ltd.
CEI (Antigua) Ltd.
soUth ameriCa
Dufry South America Ltd.
Dufry do Brasil DFS Ltda.
Eurotrade Ltd.
Flagship Retail Services Inc.
Dufry Annual Report 2006 — Most important affiliated Companies
loCation
Basel
Basel
Basel
Basel
Basel / Mulhouse
Samnaun
Milan
Milan
Milan
Milan
Canary Islands
Paris
Amsterdam
Athens
Tunis
Casablanca
Accra-North
Moscow
Sharjah
Singapore
Minsk
Miami
Miami
Houston
Newark
New York
Mexico DF
Monterrey
Oranjestad
Port of Spain
Santo Domingo
Bridgetown
Bridgetown
Nassau
Bridgetown
Castries
Castries
Castries
St John
Hamilton
Rio de Janeiro
George Town
Charlestown
CoUntry
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Italy
Italy
Italy
Italy
Spain
France
Netherlands
Greece
Tunisia
Morocco
Ghana
Russia
U. Arab Emirates
Singapore
Belorussia
USA
USA
USA
USA
USA
Mexico
Mexico
Aruba
Trinidad
Dominican Republic
Barbados
Barbados
Bahamas
Barbados
St Lucia
St Lucia
St Lucia
Antigua
Bermuda
Brazil
Cayman Island
St Kitts & Nevis
F-124
ownershiP
2006
in %
100
100
100
100
100
60
60
100
100
90
100
60
99
100
80
62
100
51
100
70
100
100
75
100
88
100
100
80
60
100
60
60
60
60
60
60
60
60
57
57
57
57
CUrrenCy
CHF
CHF
CHF
CHF
CHF
CHF
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
MAD
USD
USD
AED
SGD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
share CaPital 2006
in thoUsands
70,313
1,000
1,000
5,000
100
100
258
208
251
10
303
1,000
681
147
2,300
2,500
413
712
2,054
13,300
130
5
398
1
1,501
1,208
11,429
4,684
1,000
392
0
27,000
5,000
1,232
1,500
50
7,000
0
1
780
4,146
5,580
0
105

106
To the General Meeting of
Dufry Ltd, Basel
Basel, April 12, 2007
Report of the group auditors
� Ernst & Young Ltd
Assurance & Advisory
Business Services
Aeschengraben 9
P.O. Box
CH-4002 Basel
� Offices in Aarau, Baden, Basel, Berne, Geneva, Lausanne, Lucerne, Lugano, St.Gallen, Zug, Zurich.
Member of the Swiss Institute of Certified Accountants and Tax Consultants
� Phone +41 58 286 86 86
Fax +41 58 286 86 00
www.ey.com/ch
As group auditors, we have audited the consolidated financial statements (balance sheet, income
statement, cash flow statement, statement of changes in equity and notes / pages 54 to 105)
of Dufry Ltd for the year ended December 31, 2006. Certain financial statements of subsidiaries
have been audited by other auditors.
These consolidated financial statements are the responsibility of the board of directors. Our
responsibility is to express an opinion on these consolidated financial statements based on
our audit. We confirm that we meet the legal requirements concerning professional qualification
and independence.
Our audit was conducted in accordance with Swiss Auditing Standards and with the International
Standards on Auditing (ISA), 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 give a true and fair view of the financial
position, the results of operations and the cash flows in accordance with International Financial
Reporting Standards (IFRS) and comply with Swiss law.
We recommend that the consolidated financial statements submitted to you be approved.
Ernst & Young Ltd
Bruno Chiomento Patrick Fawer
Certified Public Accountant
(in charge of the audit)
Swiss Certified Accountant
F-125

(This page has been left blank intentionally.)
F-126

(This page has been left blank intentionally.)
F-127

Dufry AG:
Audited Statutory Financial Statements as of December 31, 2006.................................................. F-128
Income Statement ...................................................................................................................................... F-129
Balance Sheet............................................................................................................................................. F-130
Notes to the Financial Statements ............................................................................................................ F-131
Appropriation of Available Earnings ....................................................................................................... F-131
Report of the Statutory Auditors............................................................................................................... F-132
F-128

Financial StatementS DuFry ltD
aS oF December 31, 2006
income Statement
in thousands of CHF
Gain from sale of investments
Management and franchise fees income
Financial income
total income
Personnel expenses
Amortization
General and administrative expenses
Management and franchise fees expenses
Other expenses
Financial expenses
Taxes
total expenSeS
net earningS
Dufry Annual Report 2006 — Financial Statements Dufry Ltd
F-129
2006
–
5,748
24,361
30,109
2,573
5,548
2,134
741
179
385
192
11,752
18,357
2005
18,200
4,357
213
22,770
1,740
506
817
1,005
671
1,378
181
6,298
16,472
107

108
balance Sheet
aSSetS
in thousands of CHF
Cash and cash equivalents
Receivables – intercompanies
Receivables – related parties
Receivables – third parties
Other current assets
current assets
Investments
Property, plant and equipment
Intangible assets
non-current assets
total aSSetS
liabilitieS anD ShareholDerS’ equity
in thousands of CHF
Payables – intercompanies
Payables – third parties
Other current liabilities
current liabilities
non-current liabilities
total liabilities
Share capital
Share premium
Legal reserves
Available earnings
Shareholders’ equity
total liabilitieS anD ShareholDerS’ equity
Dufry Annual Report 2006 — Financial Statements Dufry Ltd
F-130
31. 12. 06
11
124,602
734
250
44
125,641
242,397
10
15,802
258,209
383,850
31. 12. 06
1,396
3,801
2,133
7,330
1,220
8,550
70,313
274,987
582
29,418
375,300
383,850
31. 12. 05
3,551
108,300
1,616
21
146
113,634
242,397
–
21,327
263,724
377,358
31. 12. 05
1,822
3,980
10,676
16,478
3,937
20,415
70,313
274,987
–
11,643
356,943
377,358

noteS to the Financial StatementS
SigniFicant inVeStmentS
in thousands of CHF
Dufry investment ltd, basel
Book value
Share capital
Ownership ( in % )
Dufry management ltd, basel
Book value
Share capital
Ownership ( in % )
31. 12. 06
242,297
1,000
100 %
100
100
100 %
guarantee commitment regarDing SwiSS Value aDDeD tax (Vat)
Dufry Ltd forms together with Dufry Travel Retail Ltd, Dufry Investment Ltd, Dufry International Ltd, Dufry Samnaun Ltd,
Dufry Basel Mulhouse Ltd, Dufry Emirates Ltd, Dufry Russia Holding Ltd, and Dufry Management Ltd a tax group for
the Swiss Federal Tax Administration - Main Division VAT. As such, Dufry Ltd is jointly and severally liable for the Value
Added Tax owed by the Group.
SigniFicant ShareholDerS’ participation
As of December 31, 2006 Travel Retail Investments SCA, Luxembourg owned 53% (2005: 53%), Areas SA, Barcelona,
Spain owned 18% (2005: 18%) and Wellington Management Company LLP, Boston, Massachusetts owned 5.03% of the
share capital of Dufry Ltd.
authorizeD anD conDitional Share capital
As per Dufry Ltd’s extraordinary shareholders meeting of November 17, 2005, an authorized capital of CHF 20.5 million
and a conditional capital in the maximum amount of CHF 7.5 million were created. During the Board of Directors meeting
from December 5, 2005, it was decided to use CHF 10.3 million of the authorized capital and to increase Dufry Ltd’s
share capital by that amount.
At an extraordinary shareholders meeting on November 23, 2006, shareholders approved the Board of Directors proposal
to increase the amount of the previously existing authorized share capital from CHF 10.2 million to CHF 21.1 million
and to set the duration of such authorized capital until November 23, 2008.
appropriation oF aVailable earningS
31. 12. 05
242,297
1,000
100%
The Board of Directors proposes to the Ordinary General Meeting of Dufry Ltd the following appropriation of available
earnings:
in thousands of CHF
Retained earnings (accumulated losses)
Net earnings for the year
Available earnings as of December 31
Transfer to general legal reserves
Dividend proposal
to be carried forward
Dufry Annual Report 2006 — Notes to the Financial Statements Dufry Ltd F-131
2006
11,061
18,357
29,418
(918)
(14,063)
14,437
100
100
100%
2005
(4,829)
16,472
11,643
(582)
–
11,061
109

110
To the General Meeting of
Dufry Ltd, Basel
Basel, April 12, 2007
Report of the statutory auditors
� Ernst & Young Ltd
Assurance & Advisory
Business Services
Aeschengraben 9
P.O. Box
CH-4002 Basel
� Offices in Aarau, Baden, Basel, Berne, Geneva, Lausanne, Lucerne, Lugano, St.Gallen, Zug, Zurich.
Member of the Swiss Institute of Certified Accountants and Tax Consultants
� Phone +41 58 286 86 86
Fax +41 58 286 86 00
www.ey.com/ch
As statutory auditors, we have audited the accounting records and the financial statements
(balance sheet, income statement and notes / pages 107 to 109) of Dufry Ltd for the year ended
December 31, 2006.
These financial statements are the responsibility of the board of directors. Our responsibility
is to express an opinion on these financial statements based on our audit. We confirm that we
meet the legal requirements concerning professional qualification and independence.
Our audit was conducted in accordance with Swiss Auditing Standards, which require that
an audit be planned and performed to obtain reasonable assurance about whether the financial
statements are free from material misstatement. We have examined on a test basis evidence
supporting the amounts and disclosures in the financial statements. We have also assessed
the accounting principles used, significant estimates made and the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the accounting records and financial statements and the proposed appropriation
of available earnings comply with Swiss law and the company's articles of incorporation.
We recommend that the financial statements submitted to you be approved.
Ernst & Young Ltd
Bruno Chiomento Patrick Fawer
Certified Public Accountant
(in charge of the audit)
Swiss Certified Accountant
F-132

(This page has been left blank intentionally.)
F-133

Dufry AG:
Audited Consolidated Financial Statements as of December 31, 2005 ........................................... F-134
Consolidated Income Statement ............................................................................................................... F-135
Consolidated Balance Sheet...................................................................................................................... F-136
Consolidated Cash Flow Statement.......................................................................................................... F-137
Consolidated Statement of Changes in Equity ........................................................................................ F-138
Notes to the Consolidated Financial Statements ..................................................................................... F-139
Most important Group Companies ........................................................................................................... F-178
Report of the Group Auditors ................................................................................................................... F-179
F-134

44
Consolidated FinanCial statements
as oF deCember 31, 2005
Consolidated inCome statement
in thousands of CHF
Net sales
Advertising income
tUrnoVer
Cost of sales
Gross ProFit
Selling expenses, net
Personnel expenses
General expenses, net
Depreciation and amortization
Other operational expenses
Other operational income
earnings before interest and taxes ( ebit )
Income from associates
Financial income (expenses)
earnings before taxes ( ebt )
Income taxes
net earninGs
attributable to
Equity holders of the parent
Minority interest
earnings per share attributable to equity holders of the parent
Basic and Diluted in CHF
note
1
2
3
4
5
6
7
8
9
10
26
2005
932,892
16,938
949,830
477,615
472,215
171,691
123,214
77,165
23,665
11,684
( 6,679 )
71,475
398
( 5,748 )
66,125
13,439
52,686
41,560
11,126
3.98
2004
722,341
12,171
734,512
381,201
353,311
124,869
93,933
59,505
18,779
23,140
( 10,137 )
43,222
1,630
( 4,794 )
40,058
11,685
28,373
15,113
13,260
Note: The comparative figures for the financial year 2004 only show ten months of operations, since the Group acquired
75% of the shares of Dufry International Ltd on March 1, 2004. Before that date, Dufry Ltd did not have any operations.
Dufry Annual Report 2005 — Consolidated Financial Statements
F-135
1.94

Consolidated balanCe sheet
assets
in thousands of CHF
Cash and cash equivalents
Trade receivables, net
Income tax receivables
Other accounts receivable
Inventories
Current assets
Property, plant and equipment
Intangible assets
Investments
Other non-current assets
Deferred tax assets
non-current assets
total assets
liabilities and shareholders’ eqUity
in thousands of CHF
Trade payables
Bank debt, short-term
Financial debt, short-term
Income tax payables
Other accounts payable
Provisions, short-term
Current liabilities
Bank debt, long-term
Financial debt, long-term
Other non-current liabilities
Deferred tax liabilities
Post-employment benefits obligation
Provisions, long-term
non-current liabilities
total liabilities
Equity attributable to equity holders of the parent
Minority interest
total equity
total liabilities and shareholders’ eqUity
Dufry Annual Report 2005 — Consolidated Financial Statements
F-136
note
11
12
13
14
15
16
17
10
note
18
19
20
18
10
22
20
31. 12. 05
51,602
2,192
6,713
66,472
200,014
326,993
65,120
422,371
79
8,867
7,660
504,097
831,090
31. 12. 05
102,982
86,403
8,629
7,341
109,070
8,939
323,364
1,575
1,968
4,009
42,760
9,704
1,674
61,690
385,054
386,352
59,684
446,036
831,090
31. 12. 04
35,045
2,042
2,704
47,016
138,235
225,042
41,540
256,161
14,066
1,917
3,071
316,755
541,797
31. 12. 04
55,971
73,432
2,740
2,946
82,334
9,384
226,807
28,396
87,774
4,482
39,246
8,961
6,609
175,468
402,275
50,747
88,775
139,522
541,797
45

46
Consolidated Cash Flow statement
in thousands of CHF
Earnings before taxes ( EBT )
adjustments for
Depreciation and amortization
Decrease (increase) in allowances, deferred taxes and provisions
Equity consolidated income
Loss (gain) on sales of property, plant and equipment
Gain on sale of investments
Loss (gain) on unrealized foreign exchange differences
Interest income
Interest expenses
operating profit before working capital changes
Decrease ( increase ) in trade and other accounts receivable
Decrease ( increase ) in inventories
Decrease ( increase ) in trade and other accounts payable
Cash generated from operations
Income taxes paid
net cash from operating activities
Cash flow from investing activities
Acquisition of interests in subsidiaries, net of cash
Sales of subsidiaries, net of cash
Proceeds from sales of associated companies
Dividends from associates
Change in consolidation method of Duty Free Caribbean Group
Purchases of property, plant and equipment
Purchases of intangible assets
Proceeds from sale of equipment
Interests received
net cash used in investing activities
Cash flow from financing activities
Net proceeds from issue of shares
Dividends paid to minority shareholders
Increase in minority equity
Increase ( decrease ) of financial debt
Increase of loans
Interest paid
net cash proceeds from financing activities
Currency translation differences
increase in cash and cash equivalents
Cash and cash equivalents at
– beginning of the year
– end of the year
Dufry Annual Report 2005 — Consolidated Financial Statements
F-137
note
5
8
9
9
28
29
17
17
15
16
11
2005
66,125
23,665
7,503
(398)
(669)
( 1,302 )
( 3,188 )
( 554 )
7,852
99,034
( 21,217 )
( 40,464 )
35,635
72,988
( 16,049 )
56,939
( 127,980 )
( 296 )
14,700
398
–
( 38,752 )
( 61,804 )
1,966
516
( 211,252 )
220,221
( 2,955 )
–
( 41,488 )
308
( 7,931 )
168,155
2,715
16,557
35,045
51,602
2004
40,058
18,779
( 8,640 )
( 1,630 )
371
( 398 )
( 731 )
( 831 )
6,408
53,386
11,209
4,620
( 11,302 )
57,913
(8,996)
48,917
( 106,578 )
–
–
398
714
( 18,258 )
( 9,297 )
1,941
424
( 130,656 )
45,000
( 2,272 )
100
77,019
3,252
( 6,315 )
116,784
–
35,045
–
35,045

Consolidated statement oF ChanGes in eqUity
in thousands of CHF
Increase in share capital
Net earnings
Acquisition of subsidiaries
Duty Free Caribbean Consolidation
Losses in excess to these attributable to
minority interests
Dividend to minority interests
Currency translation differences
balance as of 31. 12. 04
Increase in share capital 1
Net proceeds from
initial public offering ( IPO )
Net earnings
Acquisition of minority interests
Disposal of minority interests
Dividend to minority interests
Currency translation differences
balance as of 31. 12. 05
1 For further details, please refer to note 30.
Dufry Annual Report 2005 — Consolidated Financial Statements
share
CaPital
45,000
–
–
–
–
–
–
45,000
15,000
10,313
–
–
–
–
–
70,313
attribUtable to eqUity holders oF the Parent
share
PremiUm
–
–
–
–
–
–
–
–
120,300
136,214
–
–
–
–
–
256,514
translation
reserVes
F-138
–
–
–
–
–
–
( 9,366 )
( 9,366 )
–
–
–
–
–
–
12,218
2,852
retained
earninGs total
–
15,113
–
–
–
–
–
15,113
–
–
41,560
–
–
–
–
56,673
45,000
15,113
–
–
–
–
( 9,366 )
50,747
135,300
146,527
41,560
–
–
–
12,218
386,352
minority
interest eqUity
–
13,260
72,806
13,899
( 4,271 )
( 2,272 )
( 4,647 )
88,775
–
–
11,126
( 43,442 )
513
( 2,955 )
5,667
59,684
45,000
28,373
72,806
13,899
( 4,271 )
( 2,272 )
( 14,013 )
139,522
135,300
146,527
52,686
( 43,442 )
513
( 2,955 )
17,885
446,036
47

48
notes to the Consolidated
FinanCial statements
CorPorate inFormation
Dufry Ltd ( ‘Dufry’ or ‘the Company’ ) (formerly called Sintres Holding Ltd) is a public company headquartered in Basel,
Switzerland. The Company is one of the world’s leading travel retail companies with over 300 shops worldwide. The
shares of the Company are listed on the Swiss Stock Exchange ( SWX ). The major shareholder of the Company is Travel
Retail Investments SCA, which owns 53.0 % in the Dufry Group and which is in turn controlled by funds managed by
Advent International Corp.
The consolidated financial statements of Dufry Ltd and its subsidiaries for the year ended December 31, 2005 were authorized
for issue in accordance with a resolution of the Board of Directors on April 19, 2006.
ChanGe oF names
During 2005, Sintres Holding Ltd changed its name to Dufry Ltd and Dufry Holding Ltd changed it to Dufry International
Ltd. Both companies are referred to in this document with their new names.
basis oF PreParation
Dufry Ltd’s consolidated financial statements are prepared in accordance with the historical cost convention as modified
where stated by the revaluation at fair value and comply with the International Financial Reporting Standards ( IFRS ) formulated
by the International Accounting Standards Board (IASB) and with International Accounting Standards ( IAS ) and
interpretations formulated by its predecessor organization the International Accounting Standards Committee ( IASC ), as
well as with the following significant accounting policies.
All figures included in the consolidated financial statements and notes are rounded to the nearest CHF 1,000 except
where otherwise indicated.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-139

sUmmary oF siGniFiCant aCCoUntinG PoliCies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.
These policies have been consistently applied to the year presented, unless otherwise stated.
In 2004, Dufry Group early adopted the IFRS below, which are relevant to its operations :
— IAS 1 Presentation of Financial Statements
— IAS 2 Inventories
— IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
— 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 27 Consolidated and Separate Financial Statements
— IAS 28 Investments in Associates
— IAS 32 Financial Instruments: Disclosure and Presentation
— IAS 33 Earnings per Share
— IAS 36 Impairment of Assets
— IAS 38 Intangible Assets
— IAS 39 Financial Instruments: Recognition and Measurement
— IFRS 3 Business Combinations
In 2005, Dufry Group adopted:
— IFRS 2 Share-based payment
— IFRS 5 Non Current Assets Held for Sale and Discontinued Operations
— IAS 24 Related party disclosures
The principal effects of these changes in policies are discussed below.
IFRS 2 – Share-based payment
The main impact of IFRS 2 on the Group is the recognition of an expense and a corresponding entry to equity for senior
executive employee’s share options and the recognition of an expense and a liability for cash-settled share options and
other share-based plans. Up to December 31, 2005, no share options were granted to any employees.
IFRS 5 – Non-current assets held for sale and discontinued operations
The Group has applied IFRS 5 prospectively in accordance with the transitional provisions of IFRS 5, which has resulted
in a change in accounting policy on the recognition of a discontinued operation. Under the superseded IAS 35, the Group
would have recognized a discontinued operation at the earlier of the date the Group enters into a binding sale agreement
and the date the Board of Directors have approved and announced a formal disposal plan.
IFRS 5 requires a component of an entity to be classified as discontinued when the criteria to be classified as held for
sale have been met or it has been disposed of. An item is classified as held for sale if its carrying amount will be recovered
principally through a sale transaction rather than through continuing use. Such a component represents a separate
major line of business or geographical area of operations, is part of a single coordinated major line of business or
geographical area of operations or is a subsidiary acquired exclusively with a view to resale. The result of this change in
accounting policy is that a discontinued operation is recognized by the Group at a later point than under IAS 35 due to the
stricter criteria in IFRS 5. The Group did not have any discontinued operations in the periods disclosed.
IAS 24 – Related party disclosures
IAS 24 in its 2003 revised version has affected the identification of related parties and some other related-party disclosures.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements F-140
49

50
The financial statements based on IFRS contain assumptions and estimates which may affect the figures shown in the
present report. The actual result may differ from these estimates.
method of consolidation
The consolidated financial statements comprise the financial statements of Dufry Ltd and its subsidiaries as per December
31. The financial statements of the subsidiaries are prepared for the same reporting period as the parent Company,
using consistent accounting policies.
All intercompany transactions as well as income and expenses, assets and liabilities resulting from intercompany transactions
are fully eliminated. Subsidiaries are fully consolidated from the date of acquisition, being the date on which
Dufry obtains control, and continue to be consolidated until the date that such control ceases.
Comparatives
The comparative figures for the financial year 2004 only show ten months of operations, since the Group acquired 75 %
of the shares of Dufry International Ltd on March 1, 2004. Before that date, Dufry Ltd did not have any operations. If the
acquisition had occurred on January 1, 2004, consolidated turnover for the comparative period would have been CHF
850.5 million and earnings before interest and taxes ( EBIT ) CHF 48.6 million. Certain reclassifications to the 2004 financial
statements and related footnotes amounts have been made to conform to the 2005 presentation.
scope of consolidation
For 2004, the consolidated financial statements include only the financial results since Dufry Ltd took over the control
of Dufry Investment Ltd and Dufry International Ltd, as well as all subsidiaries in which Dufry Investment Ltd and Dufry
International Ltd directly or indirectly hold a majority of voting rights or otherwise control. Accordingly, the consolidated
financial statements include the results of Dufry Group for the ten month period since the acquisition on March 1, 2004.
The purchase consideration has been allocated to the assets and the liabilities on the basis of fair value at the date of
acquisition. Dufry Ltd took over the control of the Duty Free Caribbean Group in April 2004 and consolidates it since then
fully. Before that date, i. e. until March 2004, the Duty Free Caribbean Group has been proportionally consolidated in the
financial statements of the Dufry Group.
In 2005 Dufry Ltd agreed to increase the participation in Dufry International Ltd and Dufry Investment Ltd to 100 %, by
acquiring the remaining 25 % of the shares for a first consideration of CHF 90.0 million. On November 14, 2005 Dufry
Ltd agreed to pay an additional and final consideration to the former shareholders in relation to the above mentioned
acquisition of CHF 38.0 million.
As of October 1, 2005, Dufry increased through its subsidiary Duty Free Caribbean Emeralds ( St. Lucia ) its investment
in eight subsidiaries of Young Caribbean Jewellery Company Ltd from 50 % to 100 %. With this increase, Dufry took over
the control of these companies and has accounted for these investments using the purchase method of accounting. Accordingly
the consolidated financial statements include the results of the acquired companies for the three month period
ended December 31, 2005.
investments in subsidiaries
In cases where the Group directly or indirectly holds a majority of voting rights or otherwise exercises any other form of
direct or indirect control, the assets and liabilities, expenses and income of the companies concerned are included in full
in the consolidated financial statements. Minority interests in the profit and equity of subsidiaries are disclosed separately.
Companies are consolidated from the date at which control is acquired by use of the purchase method of accounting.
Identifiable assets acquired, liabilities and contingent liabilities assumed in a business combination are measured initially
at the fair values at the acquisition date, irrespective of the extent of any minority interests. The excess of the cost
of acquisition over the fair value of the Group’s share of the identifiable net assets is recorded as goodwill. If the cost of
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-141

acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is directly recognized in
the income statement. The value of recorded goodwill and other intangibles having an indefinite useful life are reviewed
annually and if management determines that impairment in the carrying value of the goodwill exists, an impairment
loss is recognized.
If a subsidiary is sold, the difference between the selling price and the net assets inclusive the translation difference is
recognized as net profit on disposal of investments in the consolidated income statement.
Intercompany transactions and balances are eliminated in the consolidated financial statements. Sales are made and
services performed at arm’s length between subsidiaries.
Intercompany profits from inventory and supplies not yet realized through sales to third parties are eliminated.
investments in associates
Investments in associates are accounted for using the equity method of accounting. These are entities in which the
Group has significant influence ( 20 % – 50 % ownership ) and which are neither subsidiaries nor joint ventures. The investment
in associates is carried in the balance sheet at cost plus post acquisition changes in the Group’s share of net
assets of the associates, less any impairment in value. The income statement reflects the Group’s share of the results
from operations of these associates.
Financial investments
Financial investments ( less than 20 % owned ) are stated at fair value. Dividends received from them, if any, as well as the
change in fair value are included in the income statement.
segment reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to
risks and returns that are different from those of other business segments.
The Group’s risks and returns are predominantly affected by the fact that it operates in different countries. Therefore, the
Group reports segmental information in its financial statements in the same way as it does internally to senior management,
i.e. using geographical areas as its primary segments.
A geographical segment is engaged in providing products or services within a particular economic environment that are
subject to risks and returns, that are different from those of segments operating in other economic environments.
Foreign currency translation
The consolidated financial statements are expressed in Swiss Francs ( CHF ). Transactions in foreign currencies are accounted
for at the rates prevailing at the dates of the transaction. Exchange differences from financial transactions are
included in the financial result along with any related hedge effects. Gains and losses resulting from foreign currency
transactions and from the adjustment of foreign-currency monetary assets and liabilities at the balance sheet date are
recognized in the income statement. Assets and liabilities of foreign subsidiaries are translated into Swiss Francs at
closing rates. The resulting translation differences are recorded into the translation component of consolidated equity.
The items of the income statement are translated into Swiss Francs at average exchange rates. The resulting translation
differences are also shown in the translation component of the consolidated statement of changes in equity.
Dufry has considered some intercompany long-term loans, which are not likely to be settled in a foreseeable future as
being part of the net investment in such subsidiary. In compliance with IAS 21 paragraph 15 the related exchange differences
have been considered in a separate component of the equity, until the disposal of the net investment or the repayment
of the loan, at which time they are included in the income statement as part of the gain or loss on disposal.
The exchange rates applied are disclosed in the notes.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements F-142
51

52
ValUation methods and deFinitions
turnover
Net sales
Dufry’s net sales consist of travel related retail sales of goods, which are sold duty free or duty paid, depending on local
laws or regulations. Sales are recognized when the rights and risks of ownership of the products have been transferred
to the customer. Retail sales are settled in cash or by credit card. The sales are considered net, after deducting trade
discounts and, where applicable, sales taxes.
Advertising income
Advertising income is recognized in the period in which the services have been rendered, and the amount of income
incurred in respect of this transaction can be measured reliably and it is probable that the economic benefits associated
with the transaction will flow to the company.
Cost of sales
Cost of sales are recognized when a subsidiary sells a product and comprise the purchase price and the cost incurred
until the product arrives at the warehouse, i. e. import duties, transport and handling cost.
other operational expenses and other operational income
Other operational expenses and income reflect transactions such as non-recurring transactions, gains or losses on sale
of property, plant and equipment or intangible assets, as well as changes for impairment and provisions.
Financial result
The financial result includes interest expenses on borrowings from third parties and interest on trade accounts with
third parties. It also includes foreign exchange results deriving from the revaluation of monetary assets and liabilities in
foreign currency and monetary assets and liabilities settled during the period.
Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and banks and short-term deposits with banks, with maturity of 90
days or less.
trade and other accounts receivable
Trade receivables are stated at their nominal value less an allowance for any uncollectible amount. The allowance for
doubtful accounts is established as soon as recovery is improbable.
inventories
Inventories are valued at the lower of historical cost or net realizable value. The historical costs are determined using the
FIFO method. Historical cost includes all expenses incurred in bringing the inventories to their present location and condition.
This includes import duties, transport and handling costs and any other directly attributable costs of acquisition.
Purchase discounts and rebates are deducted in determining the cost of purchases. The net realizable value is the estimated
selling price in the ordinary course of business less the estimated costs necessary to make the sale. Inventory
allowances are set up in the case of slow-moving stock; obsolete and expired items are fully written off.
Property, plant and equipment
These are stated at cost less accumulated depreciation and any impairment in value. Depreciation is computed on a
straight-line basis over the estimated useful life of the asset or the lease term.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-143

The useful lives applied are as follows :
— Buildings 20 to 40 years
— Leasehold improvements the shorter of 10 years or the remaining lease term
— Furniture, fixture and vehicles the shorter of 4 years or the remaining lease term
— Computer hardware the shorter of 5 years or the remaining lease term
The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
Land is valued at acquisition cost and not depreciated as it is deemed to have an indefinite life. Additional costs, which
extend the useful life of tangible assets, are capitalized. There are no financing costs associated with the construction
of tangible assets.
The carrying amount of tangible assets is reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of the asset may not be recoverable. An asset’s carrying amount is written down immediately
to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The
recoverable amount is the higher of an asset’s fair value less cost to sell and value in use.
investment properties
Investment property is held for long-term purposes and is not occupied by the Group itself. Such properties are treated
as non-current investments and are carried at fair value. Fair value is the market value as determined by external appraisers
on an annual basis. Changes in fair value are recorded in the income statement and are included in operating
income in the period in which they arise. During the periods disclosed, the Group did not hold any property in this category.
intangible assets
Concession rights and brands acquired both separately and from a business combination
Intangible assets acquired separately are capitalized at cost and from a business acquisition are capitalized at fair value
as at the date of acquisition. Following initial recognition, the cost model is applied to the class of intangible assets. The
useful lives of these intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are
amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible
asset may be impaired. Intangible assets with indefinite useful lives are not amortized but are tested for impairment
annually either individually or at the cash-generating unit level. The useful life of an intangible asset with an indefinite
life is reviewed annually to determine whether indefinite life assessment continues to be supportable. If not, the change
in useful life assessment from indefinite to finite is made on a prospective basis. Brands have indefinite useful lives and
are therefore not amortized.
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets of the related
subsidiary or associate at the date of the acquisition. Goodwill is carried at cost less accumulated impairment losses.
The carrying amount of goodwill will be reviewed annually for impairment when events or changes in circumstances
indicate that the carrying value is not recoverable. Gains and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for the purpose of impairment
testing.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-144
53

54
Impairment of assets
Assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment. Assets
that are subject to depreciation and amortization are reviewed for impairment whenever events or circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized when the carrying amount of
an asset exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell
and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows ( cash-generating units ).
leasing
Leases of assets under which the Group essentially assumes all the benefits and risks of ownership are classified as
finance leases. Finance leases are capitalized at the inception of the lease at the fair value of the leased property or if
lower at the present value of the minimum lease payments. The assets acquired under these contracts are depreciated
over the shorter of the estimated useful life of the asset or the lease term. The corresponding financial obligations are
included in the liabilities. Leases of assets under which all the risks and rewards of ownership are effectively retained by
the lesser are classified as operating leases and payments made are charged to the income statement on a straight-line
basis. The Group held no finance leases during the periods disclosed.
investments
The Group classifies its investments in the following categories: financial assets at fair value through profit or loss, loans
and receivables, held-to-maturity investments, and available-for-sale financial assets. The classification depends on the
purpose for which the investments were acquired. Management determines the classification of its investments at initial
recognition and re-evaluates this classification at every reporting date.
Financial assets at fair value through profit or loss
This category has two sub-categories: financial assets held for trading, and those designated at fair value through profit
or loss at inception. A financial asset is classified in this category if acquired principally for the purpose of selling in the
short-term. Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in this
category are classified as current assets if they are either held for trading or are expected to be realized within 12 months
of the balance sheet date. During the periods disclosed, the Group did not hold any investments in this category.
loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of trading
the receivable. Loans and receivables are included in current assets, except for maturities greater than 12 months
after the balance sheet date, in which case they are classified as non-current assets. Loans and receivables are included
in other accounts receivable in the balance sheet.
held-to-maturity investments
Held-to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities
that the Group’s management has the positive intention and ability to hold to maturity. During the periods disclosed,
the Group did not hold any investments in this category.
available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any
of the other categories. They are included in non-current assets unless management intends to dispose of the investment
within 12 months of the balance sheet date. Purchases and sales of investments are recognized on the trade-date.
This is the date on which the Group commits to purchase or sell the asset. Investments are initially recognized at fair
value plus transaction costs for all financial assets not carried at fair value through profit or loss. Investments are derecognized
when the rights to receive cash flows from the investments have expired or have been transferred and the Group
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-145

has transferred substantially all risks and rewards of ownership. Available-for-sale financial assets and financial assets
at fair value through profit or loss are subsequently carried at fair value. Loans and receivables and held-to-maturity
investments are carried at amortized cost using the effective interest method. Realized and unrealized gains and losses
arising from changes in the fair value of the financial assets at fair value through profit or loss category are included
in the income statement in the period in which they arise. Unrealized gains and losses arising from changes in the fair
value of non-monetary securities classified as available-for-sale are recognized in equity. When securities classified as
available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the income statement as
gains and losses from investment securities.
The fair value of quoted investments is based on current bid prices. If the market for a financial asset is not active ( and
for unlisted securities ), the Group establishes fair value by using valuation techniques. These include the use of recent
arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis,
and option pricing models refined to reflect the issuer’s specific circumstances.
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or group of
financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged
decline in the fair value of the security below its cost is considered in determining whether the securities are impaired.
If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between
the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized
in profit or loss – is removed from equity and recognized in the income statement. Impairment losses recognized
in the income statement on equity instruments are not reversed through the income statement. In the periods under
review, the Group did not hold any investments in the above categories.
other non-current assets
Other non-current assets include guarantee deposits and loans receivable greater than 12 months.
other accounts payable
Other accounts payable cover current or renewable liabilities due within one year. It includes accrued liabilities, salaries
and wages and other liabilities.
Provisions
Provisions are recognized when the Group has a present obligation ( legal or constructive ) as a result of a past event,
where it is probable that a cash outflow will be required to settle the obligation, and where a reliable estimate can be
made of the amount of the obligation. Provisions for litigations or claims are recognized when a present obligation to
a third party exists which has arisen from past events, a reasonable estimate of that obligation can be made and in the
opinion of the management is more likely than not that an economic outflow will occur. If the effect of the time value of
money is material, provisions are determined by discounting the expected future cash flows.
income taxes
Current income taxes are calculated based on the results of the reporting period of the individual companies, and are
recognized as current tax liabilities. Taxes, other than income taxes are reported under “other general expenses”. Deferred
taxes are provided for using the liability method on all temporary differences at the balance sheet date arising
between the tax basis of assets and liabilities and their carrying values for financial reporting purposes. Deferred taxes
are calculated based on the tax rates that are expected to apply in the period when the assets are realized or the liabilities
settled using local tax rates. Deferred tax assets relating to tax loss carry-forwards and temporary differences are
recognized when it is probable that such tax losses can be utilized in the future.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-146
55

56
share capital
Dividends are recognized in equity in the period in which they are approved by the respective company’s shareholders.
employment benefits
Pension obligations
The employees of the subsidiaries are eligible for retirement, invalidity and death benefits under local Social Security
schemes prevailing in the countries concerned and defined benefit and defined contribution plans provided through
separate funds, insurance plans, or unfunded arrangements. The pension plans are generally funded through regular
contributions made by the employer and the employee and through the income generated by their capital investments.
Where, due to local conditions, a plan is not funded, a liability is recorded in the financial statements. In the case of defined
contribution plans, the net periodic pension cost to be recognized in the income statement equals the contributions
made by the employer.
In the case of defined benefit plans, the net periodic pension cost is assessed using the projected unit credit method. The
defined benefit obligation is measured at the present value of the estimated future cash flows. The net periodic pension
cost less employee contributions is included in the personnel expenses where the employees are located. Plan assets
are recorded at their fair value. Actuarial gains or losses beyond the corridor arising from adjustments posted, changes
in actuarial assumptions, and amendments to pension plans, are recognized over the average remaining service lives
of the related employees.
Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or whenever an
employee accepts voluntary redundancy in exchange for the benefits. The Group recognizes termination benefits when it
is demonstrably committed to either : terminating the employment of current employees according to a detailed formal
plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary
redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.
Financial risk factors
The Group operates worldwide and is therefore exposed to a variety of financial risks such as foreign exchange risk,
credit risk, liquidity risk and cash flow and interest rate risk. The Group’s overall risk management program focuses on
the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance.
Special guidelines exist for risk management, and are monitored by management. The Group only concludes contracts
with selected high-quality financial institutions of good reputation.
Foreign exchange risk
In order to reduce its foreign exchange exposure, the Group may enter into currency contracts to hedge against foreign
currency exchange risks, in particular relating to settlements of intercompany transactions. An evaluation based on
market values is performed regularly.
Credit risk
The Group has no significant concentrations of credit risk. Most of the sales are retail sales and made against cash or
internationally recognized credit card or bank debit cards. It also has policies in place that other sales of products and
services are made to customers with an appropriate credit history or that the credit risk is insured by a specialized indemnity
insurer.
Interest rate risk
The Group’s exposure to market risks for changes in interest rates relates primarily to the Group’s bank debt and financial
debt.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-147

Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and the availability of funding
through an adequate amount of committed credit facilities.
accounting for derivative financial instruments and hedging activities
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured
at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is
designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates derivatives as
fair value hedges, cash flow hedges, hedges of net investments in foreign operations and derivatives that do not qualify
for hedge accounting. In the period under review the Group did not hold any derivative financial instruments.
Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income
statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged
risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are
recognized in equity. The gain or loss relating to the ineffective portion is recognized immediately in the income statement.
Amounts accumulated in equity are recorded in the income statement in the periods when the hedged item will affect
profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset
or a liability, the gains and losses previously deferred in equity are transferred from equity and included in the initial
measurement of the cost of the asset or liability.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any
cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is
ultimately recognized in the income statement. When a forecast transaction is no longer expected to occur, the cumulative
gain or loss that was reported in equity is immediately transferred to the income statement.
Hedges of net investments in foreign operations
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on
the hedging instrument relating to the effective portion of the hedge is recognized in equity; the gain or loss relating to
the ineffective portion is recognized immediately in the income statement. Gains and losses accumulated in equity are
included in the income statement when the foreign operation is disposed of.
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instruments
that do not qualify for hedge accounting are recognized immediately in the income statement.
related parties
A party is related to an entity if the party directly or indirectly controls, is controlled by, or is under common control with
the entity, has an interest in the entity that gives it significant influence over the entity, has joint control over the entity
or is an associate or a joint venture of the entity. In addition, members of the key management personnel of the entity or
close members of the family are also considered related parties as well as post-employment benefit plans for the benefit
of employees of the entity. Transactions with related parties are conducted on an arm’s-length basis.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-148
57

58
Government grants
Government grants are recognized at fair value where there is reasonable assurance that the grant will be received
and all attaching conditions will be complied with. The Group did not receive any government grants in the periods disclosed.
borrowing costs
Borrowing costs are recognized as an expense when incurred.
Critical accounting estimates and assumptions
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates.
It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The
Group makes estimates and assumptions concerning the future. The resulting accounting will not necessarily equal the
related actual results. The areas involving a higher degree of judgment or complexity, or areas where assumptions and
estimates are significant to the consolidated financial statements are discussed below.
Concession Rights
Concessions acquired in a business combination are valued at fair value as at the date of acquisition. The useful lives of
operating concessions are assessed to be either finite or indefinite based on individual circumstances. The useful life of
operating concessions is reviewed annually to determine whether the indefinite life assessment for those concessions
where it is assumed continues to be supportable. The Group tests the operating concessions with indefinite useful lives
for impairment. The underlying calculation requires the use of estimates.
Brands and Goodwill
The Group tests annually for impairment in accordance with IAS 36. The underlying calculation requires the use of estimates.
Post-employment benefit plans
Dufry sponsors pension and other retirement plans in various forms. Several statistical and other factors that attempt to
anticipate future events are used in calculating the expenses and liabilities related to the plans. The actuarial assumptions
used may differ materially from actual results due to changing market and economic conditions higher or lower
withdrawal rates or shorter or longer life spans of participants.
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. The Group recognizes liabilities for tax audit issues based on estimates of whether additional taxes
will be payable. Where the final tax outcome is different from the amounts that were initially recorded, such differences
will impact the income tax and deferred tax provisions in the period in which such determination is made.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-149

notes
1 net sales
different breakdowns of net sales are as follows:
in thousands of CHF
net sales by product category
Perfumes and Cosmetics
Wine and Spirits
Tobacco goods
Watches, Jewelry and Accessories
Confectionery and Food
Electronics
Fashion, Leather and Baggage
Literature and Publications
Toys
Souvenirs
Other goods
total
net sales by market sector
Duty free
Duty paid
total
net sales by channel
Airports
Cruise liners and seaports
Downtown, hotel and resorts
Railway stations and other
total
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements F-150
2005
203,923
154,724
130,229
129,600
114,943
60,668
46,201
47,879
6,090
4,412
34,223
932,892
737,954
194,938
932,892
679,235
95,068
98,068
60,521
932,892
2004
154,753
119,240
103,552
68,918
84,311
47,878
32,925
36,721
4,760
3,912
65,371
722,341
548,029
174,312
722,341
524,351
60,792
78,132
59,066
722,341
59

60
2 sellinG exPenses, net
in thousands of CHF
Concession fees
Advertising and commission expenses
Bad debt expenses
Credit card commissions
Packaging materials
Other selling expenses
selling expenses
Concession and rent income
Commission income
Other selling income
selling income
total
3 Personnel exPenses
in thousands of CHF
Salaries and wages
Social security expenses
Retirement benefits
Other personnel expenses
total
number of full time equivalents (as per december 31)
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-151
2005
168,312
3,231
117
9,434
3,722
468
185,284
( 4,575 )
( 3,493 )
( 5,525 )
( 13,593 )
171,691
2005
94,751
17,406
1,353
9,704
123,214
4,419
2004
122,394
1,284
123
6,572
2,418
–
132,791
( 4,383 )
( 3,089 )
( 450 )
( 7,922 )
124,869
2004
70,951
13,015
1,027
8,940
93,933
3,950

4 General exPenses, net
in thousands of CHF
Premises
Repairs and maintenance
Office and administration
Insurances
Car
EDP
Travel
Legal, consulting and audit fees
PR and advertising
Entertainment and representation
Bank fees
Taxes, other than income taxes
Franchise and management fees expenses
Franchise and management fees income
total
5 dePreCiation and amortization
in thousands of CHF
Depreciation of property, plant and equipment ( note 15 )
Amortization of intangible assets ( note 16 )
total
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-152
2005
22,482
8,170
9,700
3,147
1,427
2,983
4,482
9,002
6,676
589
1,928
2,054
5,584
( 1,059 )
77,165
2005
17,135
6,530
23,665
2004
16,843
6,762
7,641
1,986
1,306
2,322
3,188
8,516
4,275
546
1,629
3,025
4,270
( 2,804 )
59,505
2004
14,016
4,763
18,779
61

62
6 other oPerational exPenses
in thousands of CHF
Consulting expenses related to special projects 1
Reorganization expenses 2
Bad debt, loans allowances and write offs
Creation of provisions 3
Litigation settlements
Loss on sale of non-current assets
Other
total
Release of provisions and allowances 1
Gain on sale of investments 2
Release of special project costs 3
Gain on sale of non-current assets
Litigation income
Bad debt recoveries and reclassifications
Other
total
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
2005
4,773
2,710
1,031
2,206
–
–
964
11,684
2005
2,160
1,302
1,761
678
–
–
778
6,679
2004
10,149
1,575
2,698
4,843
1,512
371
1,992
23,140
1 In 2005, the project expenses relate mainly to expansions in Moscow ( CHF 1.4 million ), Morocco ( CHF 0.8 million ) and Dominican Republic ( CHF 0.4
million ) as well as CHF 1.6 million related to the acquisition of minorities of Dufry International Ltd.
2 The reorganization expenses relate to the closure of the shop in the airport of Cancun, Mexico ( CHF 0.4 million ) and of the shop in the airport of Philadelphia,
USA ( CHF 0.5 million ), the relocation of shops in Barbados ( CHF 0.4 million ) and the relocation of the warehouse in Switzerland ( CHF 1.1 million ).
3 In 2005, the increase in provisions relates mainly to the provisions for the reorganization of the activities in the Ivory Coast and France ( see note 20 ).
7 other oPerational inCome
in thousands of CHF
1 In 2005, the part of the provisions for reorganization of Kaliningrad, Russia was released, amounting to CHF 1.3 million.
2 In 2005, the gain on sale of investments relates to Kaliningrad, Russia ( CHF 0.5 million ) and Galaco SA, Spain ( CHF 0.8 million ).
3 In 2005, Dufry reversed a part of the expenses accrued relating to a project in Mexico ( CHF 1.8 million ).
F-153
2004
7,149
–
–
47
136
1,256
1,549
10,137

8 inCome From assoCiates
This position includes the share of profits or losses of associated companies accounted for under the equity method and
dividends from other investments.
in thousands of CHF
Galaco SA, Spain ( note 17 )
9 FinanCial inCome ( exPenses )
in thousands of CHF
Interest expenses
Interest income
Foreign exchange gain
total
10 inCome taxes
income tax expenses
in thousands of CHF
Consolidated earnings before income tax ( ebt )
Tax rate in %
Tax at the applicable rate
Income from countries not subject to income tax
Tax effect of different tax rates in other countries / regimes
Effect of prior year adjustments
Not recognized deferred tax assets on current tax losses
Utilization of tax credits
total
of which deferred taxes
The applicable tax rate used for 2005 is 24.8 % ( 30.0 % in 2004 ). The decrease relates to changes in the local tax rates of
Italy 33.0 % ( 34.0 % in 2004 ), Singapore 20.0 % ( 22.0 % in 2004 ), France 36.0 % ( 33.0 % in 2004 ), as well as to the weight of
the jurisdictions considered in the applicable tax rate and the tax optimization initiative initiated in 2004.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-154
2005
398
2005
( 7,852 )
554
1,550
( 5,748 )
2005
66,125
24.8 %
16,399
( 2,712 )
(835)
950
646
( 1,009 )
13,439
( 2,571 )
2004
1,630
2004
( 6,408 )
831
783
( 4,794 )
2004
40,058
30.0 %
12,016
( 3,651 )
4,077
1,869
1,308
( 3,934 )
11,685
284
63

64
tax loss carry-forwards by expiry date
Expiring within 1 to 3 years
Expiring within 4 to 7 years
Expiring over 7 years
total
Potential tax relief
Valuation allowance
Tax loss carry-forwards recognized in the balance sheet
Cash on hand and cash at bank
Short-term deposits
total
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
31. 12. 05
4,890
8,570
19,542
33,002
8,802
( 6,249 )
2,553
31. 12. 05
50,767
835
51,602
31. 12. 04
7,167
2,994
16,239
26,400
8,409
( 5,338 )
3,071
deferred tax assets and liabilities
The deferred tax assets amounting to CHF 7.7 million ( CHF 3.1 million in 2004 ) recognized in the balance sheet comprise
tax loss carry-forwards of CHF 2.6 million and temporary tax differences of CHF 5.1 million. The temporary differences
include deferred taxes on: accrued expenses CHF 2.4 million, tangible assets CHF 1.6 million and other balance sheet
positions CHF 1.1 million. The deferred tax liabilities of CHF 42.8 million ( CHF 39.2 million in 2004 ) relate mainly to deferred
taxes on intangible assets CHF 39.4 million and inventories CHF 3.4 million.
11 Cash and Cash eqUiValents
in thousands of CHF
31. 12. 04
32,268
2,777
35,045
Cash and cash equivalents include CHF 3.4 million ( 2004: 3.0 million ) held by subsidiaries operating in countries with
exchange controls or other legal restrictions.
12 trade reCeiVables, net
in thousands of CHF
Trade receivables, gross
Bad debt allowance
total
31. 12. 05
3,456
( 1,264 )
2,192
Bad debt allowance relates to a doubtful receivable of CHF 1.1 million from a customer in the Eurasia region.
F-155
31. 12. 04
4,319
( 2,277 )
2,042

13 other aCCoUnts reCeiVable
in thousands of CHF
Accrued income
Sales tax and other taxes
Refunds from suppliers and concessionaires
Credit card organizations
Prepayments
Guarantee deposits
Related parties
Loans receivable
Interest receivables
Other
total
Allowances
total
14 inVentories
in thousands of CHF
Perfumes and Cosmetics
Wine and Spirits
Tobacco goods
Watches, Jewelry and Accessories
Confectionery and Food
Electronics
Fashion, Leather and Baggage
Literature and Publications
Toys
Souvenirs
Other goods
inventories gross
Inventory allowances
inventories net
Cost value of slow and non-moving items add up to CHF 7.6 million ( 2004 : CHF 7.0 million ).
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-156
31. 12. 05
6,589
16,868
14,374
5,659
5,625
2,406
4,349
1,085
669
9,648
67,272
( 800 )
66,472
31. 12. 05
52,890
23,642
17,333
66,203
11,543
5,897
11,845
4,525
1,246
546
8,987
204,657
( 4,643 )
200,014
31. 12. 04
4,204
13,278
3,503
2,800
9,269
4,108
1,745
888
591
6,630
47,016
–
47,016
31. 12. 04
40,962
19,517
12,649
28,972
8,527
4,499
10,271
2,440
788
1,070
12,809
142,504
( 4,269 )
138,235
65

66
15 ProPerty, Plant and eqUiPment
in thousands of CHF
at cost
Acquisition of subsidiaries
Additions
Disposals
Currency translation differences
balance as of 31. 12. 04
accumulated depreciation
Acquisition of subsidiaries
Additions ( note 5 )
Disposals
Currency translation differences
balance as of 31. 12. 04
at cost
Balance as of 01. 01. 05
Change in consolidation
Additions
Disposals
Currency translation differences
balance as of 31. 12. 05
accumulated depreciation
Balance as of 01. 01. 05
Change in consolidation
Additions (note 5)
Disposals
Currency translation differences
balance as of 31. 12. 05
Carrying amount as of 31. 12. 04
Carrying amount as of 31. 12. 05
in thousands of CHF
Fire insurance value
1,382
–
–
( 106 )
1,276
614
142
–
( 66 )
690
1,276
–
–
( 8 )
166
1,434
690
–
151
–
114
955
586
479
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
leasehold
FUrnitUre
ComPUter
real estate imProVements
FixtUre
hardware
VehiCles total
F-157
45,563
3,587
( 8,281 )
( 2,711 )
38,158
29,878
3,858
( 6,754 )
( 1,670 )
25,312
38,158
2,549
15,846
( 5,214 )
6,331
57,670
25,312
2,834
5,103
( 5,208 )
4,016
32,057
12,846
25,613
81,585
10,027
( 6,792 )
( 2,681 )
82,139
62,751
6,993
( 6,153 )
( 2,072 )
61,519
82,139
1,823
14,115
( 24,160 )
(1,675)
72,242
61,519
2,061
7,828
( 23,050 )
( 1,602 )
46,756
20,620
25,486
23,896
3,867
( 1,029 )
( 1,014 )
25,720
19,077
2,588
( 1,266 )
( 823 )
19,576
25,720
1,054
7,930
( 3,955 )
5,391
36,140
19,576
997
3,453
( 3,820 )
4,179
24,385
6,144
11,755
31. 12. 05
143,235
4,888
777
( 835 )
( 236 )
4,594
3,779
435
( 808 )
( 156 )
3,250
4,594
(82)
861
( 1,662 )
1,058
4,769
3,250
( 4 )
600
( 1,537 )
673
2,982
1,344
1,787
157,314
18,258
( 16,937 )
( 6,748 )
151,887
116,099
14,016
( 14,981 )
( 4,787 )
110,347
151,887
5,344
38,752
( 34,999 )
11,271
172,255
110,347
5,888
17,135
( 33,615 )
7,380
107,135
41,540
65,120
31. 12. 04
109,423

16 intanGible assets
in thousands of CHF
at cost
Acquisition of subsidiary
Additions
Currency translation differences
balance as of 31. 12. 04
accumulated amortization and
impairment losses
Additions ( note 5 )
Currency translation differences
balance as of 31. 12. 04
at cost
Balance as of 01. 01. 05
Additions
Disposals
Currency translation differences
balance as of 31. 12. 05
accumulated amortization and
impairment losses
Balance as of 01. 01. 05
Additions (note 5)
Disposals
Currency translation differences
balance as of 31. 12. 05
Carrying amount as of 31. 12. 04
Carrying amount as of 31. 12. 05
136,391
–
( 7,897 )
128,494
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
ConCession riGhts
indeFinite liFe Finite liFe
brands
Goodwill
other total
–
–
–
128,494
–
–
10,683
139,177
–
–
–
–
–
128,494
139,177
53,452
–
( 3,567 )
49,885
4,763
(782)
3,981
49,885
57,873
( 2,787 )
5,236
110,207
3,981
6,412
( 2,489 )
1,463
9,367
45,904
100,840
38,049
–
–
38,049
–
–
–
38,049
–
–
–
38,049
–
–
–
–
–
38,049
38,049
34,417
9,297
–
43,714
–
–
–
43,714
96,469
–
1,801
141,984
–
–
–
–
–
43,714
141,984
–
–
–
–
–
–
–
–
2,437
–
2
2,439
–
118
–
–
118
–
2,321
262,309
9,297
( 11,464 )
260,142
4,763
(782)
3,981
260,142
156,779
(2,787)
17,722
431,856
3,981
6,530
( 2,489 )
1,463
9,485
256,161
422,371
acquisitions during 2004
As discussed in note 28, the group acquired 75 % of the shares of Dufry International Ltd in March 2004. As a result of
this acquisition concession rights aggregating CHF 189.8 million and brands aggregating CHF 38.0 million were capitalized
as intangible assets. The surplus of the purchase price above the fair value of the net asset acquired including the
intangible assets was allocated to goodwill of CHF 34.4 million. The goodwill resulting from the acquisition represents
the excess consideration paid to acquire the Dufry knowledge of the duty free retail business and to generate synergies
from the existing market penetration.
F-158
67

68
Concession rights
Concession rights acquired from the above acquisition in March 2004, are divided into concession rights with finite useful
lives aggregating CHF 53.4 million and concession rights with indefinite useful lives aggregating CHF 136.4 million.
Concession rights with finite useful lives are amortized on a straight-line basis over their useful lives ranging from 4 to
15 years. Amortization of CHF 6.4 million ( 2004: CHF 4.8 million ) is included in the depreciation and amortization in the
income statement. Concession rights with indefinite useful lives represent rights where, based on an analysis of all of
the relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows
for the entity. Such relevant factors include the past track record of accomplishment of the respective concession,
the longevity of the contracts as well as the equity interest in certain local entities.
Brands
The Dufry brands were acquired as a result of the acquisition described above and in note 28. Brands have been considered
to have an indefinite useful life.
acquisitions during 2005
In 2005, the Group entered into a number of agreements with the former owners and acquired the additional 25 % of
Dufry International Ltd and Dufry Investment Ltd for a consideration of CHF 128.0 million. As a result of the purchase
of these minority interests, additional goodwill in the amount of CHF 80.2 million was recognized in accordance with the
parent entity extension method. In addition, also a non-compete agreement was separately obtained and recognized in
the amount of CHF 1.8 million. This non-compete agreement runs until February 28, 2009 and will be amortized accordingly
using the straight-line method. The group also acquired eight subsidiaries of Young Caribbean Jewellery Company
Ltd for USD 12.0 million ( see note 28 for details ).
On July 14, 2005, Dufry obtained the concession rights to operate duty free shops in the airports of Marrakech, Casablanca
and Agadir for 20 years. On June 20, 2005, Dufry Ltd obtained the exclusivity rights to operate the duty free and
duty paid shops of the Dominican Republic for a period of 25 years. These rights amounted to CHF 54.4 million.
impairment test
Concession rights with indefinite useful lives, brands and goodwill are tested for impairment each year. Concession
rights with finite useful lives are tested for impairment whenever events or circumstances indicate that the carrying
amount may not be recoverable.
impairment test of goodwill
For the purpose of impairment testing, goodwill acquired through business combinations has been allocated to the following
four categories of cash generating units ( CGU’s ), which are also the reportable segments, that are expected to
benefit from the synergies of the business combination:
in thousands of CHF
Europe
Africa
Eurasia & Asia
Americas & Caribbean
total CarryinG amoUnt
The recoverable amounts of goodwill for each of the above group of CGU’s have been determined based on value-in-use
calculations. These calculations use cash flow projections from business plans approved by senior management covering
a five year period, and a discount rate, which represents the weighted average cost of capital ( WACC ) adjusted for
region specific risks.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-159
31. 12. 05
15,915
31,026
24,835
70,208
141,984
31. 12. 04
12,852
5,020
5,411
20,431
43,714

Cash flows beyond the five year period have been extrapolated using a steady growth rate that does not exceed the longterm
average growth rate for the respective markets in which these legal entities operate. The basis used to determine
the value assigned to the budgeted net sales, which determines the free cash flow used in the discounted cash flow model,
is the actual net sales achieved in the year 2005 and the budget 2006, increased thereafter for expected market growth.
The following are the key assumptions used for determining the recoverable amounts for each of the above group of
CGU’s at December 31, 2005 :
Europe
Africa
Eurasia & Asia
Americas & Caribbean
in thousands of CHF
Europe
Africa
Eurasia & Asia
Americas & Caribbean
total CarryinG amoUnt
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
disCoUnt rates
5.68 %
6.54 %
6.19 %
6.11 %
Growth rates For
extraPolatinG Cash Flows
3.00 %
3.00 %
3.00 %
3.00 %
Management believes that any reasonably possible change in the key assumptions on which the recoverable amounts
are based would not cause its carrying amount to exceed its recoverable amount.
impairment test of intangible assets with indefinite useful lives ( concession rights and brands )
Concession rights with indefinite useful lives
For the purpose of impairment testing, concession rights with indefinite useful lives are allocated to the respective CGU
to which it relates. The following table indicates the allocation of the concession rights with indefinite useful lives to the
group of CGU’s that are also the Company’s reportable segments :
31. 12. 05
76,754
675
17,104
44,644
139,177
31. 12. 04
76,014
656
14,745
37,079
128,494
Each of the above reportable segments represents a group of CGU’s for the group, for example, the region Europe includes
operating concessions in the European region for which concession rights have been allocated and valued by the
group. Each such concession represents the cash generating unit for the group, for the purpose of testing the concession
rights with indefinite life for impairment.
The recoverable amounts for each of the CGU’s have been determined based on value-in-use calculations. These calculations
use cash flow projections from business plans approved by senior management covering a five year period, and
a discount rate, which represents the weighted average cost of capital ( WACC ) adjusted for country specific risks. Cash
flows beyond the five year period have been extrapolated using a steady growth rate that does not exceed the long-term
average growth rate for the respective markets in which these legal entities operate. The basis used to establish the
value assigned to the budgeted net sales, which determines the free cash flow used in the discounted cash flow model,
is the actual net sales achieved in the year immediately before the budgeted year, increased for expected performance
improvements.
F-160
69

70
The following are the key assumptions used for determining the recoverable amounts for each of the above group of
CGU’s :
Europe
Africa
Eurasia & Asia
Americas & Caribbean
1 Depending on the country in which the concession operates.
Management believes that any reasonably possible change in the key assumptions on which the recoverable amounts
are based would not cause its carrying amount to exceed its recoverable amount.
Brands
For the purpose of impairment testing, the Dufry brands are not allocated to any specific CGU or group of CGU but are
assessed at the group level. Management believes that the synergies from the brands are corporate in nature and the
allocation of the carrying amount to CGU’s or group of CGU’s would not reflect economic reality.
The recoverable amount is determined based on the relief from royalty method that considers a steady royalty stream of
0.3 % post tax of the net sales projected by the Company. The net sales projections cover a period of 5 years with a year
on year growth rate of 3.0 %. This growth rate does not exceed the long-term average growth rate for the Dufry Group.
The discount rate of 6.1 % represents the weighted average cost of capital ( WACC ) at the group level.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-161
disCoUnt rates 1
6.8 %
7.4 %
8.6 %
5.7 %
Growth rates For
extraPolatinG Cash Flow 1
1.5 – 2.0%
2.0%
2.0%
3.0%

17 inVestments
in thousands of CHF
associated companies ( equity consolidated )
Galaco SA, Spain
Galaweit SA, Spain
Financial investment
FAS Srl, Turin, Italy
total
the changes in investments are as follows :
in thousands of CHF
balance as of 01. 01. 05
Income from associates ( note 8 )
Dividend received
Currency translation differences
Sale of associated companies
balance as of 31. 12. 05
FinanCial
inVestments
79
–
–
–
–
79
31.12.05–
44,700 –
8,842 –
34,436
79-
87,978
1,575 79
assoCiated
ComPanies total
13,987
398
(398)
(51)
(13,936)
–
13,975
12
13,987
14,066
398
(398)
(51)
(13,936)
79
On November 15, 2005 Dufry ( Europe ) B.V. sold its 43 % participation in Galaco SA, Spain and 50 % participation in Galaweit
SA, Spain to a company related to a former shareholder of Dufry International Ltd. The price of CHF 14.7 million was
paid in 2005 and produced a gain on sale of CHF 0.8 million.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements F-162
31. 12. 05 31. 12. 04
79
14,066
71

72
18 bank debt
in thousands of CHF
Swiss Francs account
Euros account
US Dollars account
Other currencies account
total
of which short-term debt
of which long-term debt
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
31. 12. 05
44,700
8,842
34,436
–
87,978
86,403
1,575
31. 12. 04
22,887
23,642
55,294
5
101,828
73,432
28,396
The Group’s key credit facilities are negotiated and organized centrally, with only minor credit lines at the regional level.
At December 31, 2005, the Group’s main credit facilities were long-term credit facilities of approximately CHF 380.0 million,
of which the portion used for cash was CHF 69.8 million with a weighted average interest rate of 3.5 %. CHF 69.8
million of the portion used for cash is classified as short-term debt, since, although the facilities are long-term in nature,
amounts are usually drawn and repaid within a period shorter than a year.
These credit facilities are separately provided by a number of banks including Credit Suisse, Deutsche Bank, Dresdner
Bank, ING Bank, Raiffeisen Zentralbank Austria and UBS and have a maturity period of one to three years. Interest in
respect of any borrowings under these credit facilities is at a floating rate ( EURIBOR or LIBOR ) plus spread. These facilities
contain customary financial covenants and conditions.
19 other aCCoUnts Payable
in thousands of CHF
Concession fee payables
Other service related vendors
Personnel payables
Sales tax and other taxes
Accruals related to special projects
Accrued liabilities
Purchase consideration Young Caribbean Group
Related parties
Advanced payments
Accrued pension liabilities
Interest payables
Other
total
F-163
31. 12. 05
25,831
16,829
16,674
5,281
15,937
6,029
15,750
1,494
–
–
–
5,245
109,070
31. 12. 04
34,813
10,192
10,020
3,617
6,316
4,387
–
4,504
138
481
863
7,003
82,334

20 ProVisions
in thousands of CHF
Law suits and duties
Dispute on contracts
Reorganization costs
Other
total
of which short-term
of which long-term
balanCe as oF
01. 01. 05
2,854
7,787
4,312
1,041
15,994
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
inCrease
71
1,704
1,981
69
3,825
Used this year
(1,783)
(4,871)
(1,622)
–
(8,276)
released to
inCome
statement
–
–
(1,532)
(213)
(1,745)
CUrrenCy
translation
diFFerenCes
129
577
42
67
815
balanCe as oF
31. 12. 05
1,271
5,197
3,181
964
10,613
8,939
1,674
Management believes that its total provisions are adequate based upon information currently available. However, given
the inherent difficulties in estimating liabilities in the areas below described, it cannot be guaranteed, that additional or
lesser costs will be incurred beyond or below the amounts accrued.
Law suits and duties
The provision covers uncertainties related to law suits in respect of sales or income taxes and duties in five countries,
whereby no provision exceeds CHF 0.4 million. Dufry Mexico used the existing provision of CHF 1.1 million to cover uncertainties
related to the collection of an outstanding amount of taxes owed by the Mexican tax authority based on the
judicial sentence. The amount is now presented net of other accounts receivable.
Dispute on contracts
The subsidiary in Houston has a dispute of CHF 1.7 million regarding the payment of a minimal annual guarantee of the
ongoing concession. A Mexican subsidiary has used a provision of CHF 3.6 million related to the interpretation of the
concession agreement with the landlord. The subsidiary in the Ivory Coast is disputing the payment of CHF 1.9 million
for procurement commissions based on an old agreement. Dufry Paris is claiming that based on changing business
conditions, the original concession contract should forgive them to pay the guaranteed minimum of CHF 1.4 million.
Dufry Bel has been requested to pay CHF 0.2 million, based on an agreement to obtain an exclusivity which has still not
been obtained.
Reorganization costs
In July 2003, the general assembly of Food Village approved to close a non-profitable shop in Amsterdam. The termination
costs have been estimated in 2004 at CHF 1.1 million and cover the probable outflows to settle the rent contract as
well as the loss related with the realization from the sale of the property and equipment. After certain payments in 2005,
the provision still required was estimated at CHF 0.6 million.
Dufry’s management has started to close its operation in the Ivory Coast. Therefore a provision of CHF 1.5 million has
been created to cover the estimated expenses related to the closure and the loss on disposal of assets to be incurred
next year. In December 2005, Dufry’s management decided to relocate the administrative offices of Dufry France and
Dufry Paris to a location close to Basel. The cost for this reorganization has been estimated at CHF 0.9 million.
A part of a provision created for Philipp OOO in Kaliningrad amounting to CHF 2.5 million has been used since the company
has been sold, and the remaining CHF 1.3 million was released to the income statement.
Other
This relates mainly to a dispute amounting to CHF 0.4 million not covered by the insurance company regarding damages
in 2004 in the Aruba subsidiary, and to legal costs in Dufry Tunisia of CHF 0.5 million.
F-164
73

74
21 ContinGent liabilities
The Group enters into long-term agreements with port authorities to guarantee the exploitation rights of the concessions.
Most of the concessionaires require a minimum annual guarantee based on sales, passengers or other indicators
of operational level. In case of early termination, Dufry’s subsidiaries can be required to indemnify the port authorities for
lost earnings. The Group or its subsidiaries have granted these warranties regarding the performance of certain longterm
contracts directly or through third parties. As per December 31, 2005 no request for fulfillment of such contingent
liabilities are pending.
The Group is contingently liable for a remaining amount of CHF 3.2 million in relation to the purchase of Emerald
Distributors Ltd by Duty Free Caribbean ( Holdings ) Ltd. Under the terms of the purchase agreement, the purchase
price was dependent on the consolidated results of Duty Free Caribbean Emeralds ( St. Lucia ) Ltd maintaining
a certain level of earnings before depreciation, amortization and interest but after taxes. On attaining the level
of earnings in any one year as per the agreement, an amount of CHF 1.6 million ( USD 1.2 million ) is payable to the
vendor that year. The remaining two payments can become due in any year up to March 31, 2010.
The Group has a contingent tax liability of CHF 1.1 million based on a possible different interpretation of a transaction‘s
nature.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-165

22 Post-emPloyment beneFits obliGation
The personnel of the Dufry Group are insured against the risk of old age and disablement in accordance with the local
laws and regulations. A description of the significant retirement benefit plans is as follows :
switzerland
In Switzerland, the insurance coverage is partially guaranteed by a pension fund, which is a separate legal entity. The
Swiss pension plan is a defined benefit plan. The principal assumptions for the actuarial computation are given below :
Discount rates
Expected return on plan assets
Future salary increases
Future pension increases
Average retirement age ( in years )
Net pension cost
The net pension cost developed as follows :
in thousands of CHF
Current service cost
Interest cost
Expected return on plan assets
Periodic pension cost
Employees’ contribution
net pension cost
employer’s contribution
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
3.00 %
4.25 %
1.50 %
1.00 %
64
2005
935
436
( 587 )
784
( 438 )
346
674
3.25 %
4.25 %
1.50 %
1.00 %
64
2004
1’294
644
( 670 )
1,268
( 421)
847
The total of the pension cost of the Group is included in personnel expenses ( retirement benefits ). The actual return of
plan assets is CHF 1.3 million ( CHF 0.5 million in 2004 ).
Funded status
in thousands of CHF
Plan assets at fair value
Present value of defined benefit obligation
Funded status
Unrecognized actuarial gain
net liability in balance sheet
F-166
2005 2004
2005
17,048
( 16,069 )
979
1,132
153
607
2004
13,801
( 13,407 )
394
875
481
75

76
Reconciliation to the balance sheet
The movement in the pension liability is recognized in the balance sheet as follows :
in thousands of CHF
Net liability at beginning of the year
Liabilities acquired in business combination
Periodic pension cost
Contributions paid
net liability at end of the year
2005
481
–
784
( 1,112 )
153
2004
–
241
1,268
( 1,028 )
481
italy
In Italy, an unfunded defined benefit plan exists. The social pension contributions owed by the employer is based on the
number of years the respective employee worked with the respective Italian subsidiaries. The amount accrued as per
December 31, 2005 amounted to CHF 8.7 million ( 2004: CHF 8.4 million ). The benefits for the insured Italian employees
have been revalued in 2005 using an independent actuarial valuation, based on a discount rate of 4.0 %, an expected
increase in salary of 3.0 % and an inflation rate of 1.5 %.
other countries
Further smaller pension plans also exist in other countries. For these plans, a total amount of CHF 0.9 million was accrued
as of December 31, 2005 ( 2004 : CHF 0.6 million ).
Post-employment benefits obligation
in thousands of CHF
Switzerland
Italy
Other countries
total
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-167
2005
153
8,707
844
9,704
2004
–
8,392
569
8,961

23 related Parties and related Party transaCtions
in thousands of CHF
related Parties /
shareholders oF dUFry ltd
Advent International Corp ( USA )
Areas SA ( Spain )
Petrus Pte. Ltd ( Singapore )
Witherspoon Investments LLC ( USA )
related Parties /
minority shareholders oF
Dufry International Ltd
Dufrital SpA
Dufry Mexico SA de CV
Duty Free Caribbean ( Holdings ) Ltd
Flagship
Other subsidiaries
other related Parties
total
Dufry Mexico SA de CV operates shops at Mexico City’s Benito Juarez Airport under agreements with Inmobiliaria Fumisa,
SA de CV. Advent International Corporation, the entity that manages the funds that control the Company’s majority
shareholder, Travel Retail Investments SCA, manages other funds that have a 50 % shareholding in Inmobiliaria Fumisa,
SA de CV with the remaining 50 % owned by a co-investor. In addition, three of the members of the Company’s Board of
Directors are also directors of Inmobiliaria Fumisa, SA de CV. The Mexico City concessions are due to remain in force
until varying dates between 2010 and 2013. Under the agreements, the Company is required to compensate Inmobiliaria
Fumisa, SA de CV through a monthly fixed rental fee. In 2005, total rent paid amounted to CHF 7.8 million ( 2004 : CHF
6.0 million ).
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
exPenses
530
–
67
–
67
–
8
–
–
–
29,226
28,826
7,800
6,000
436
–
–
–
2,409
339
215
826
40,758
35,991
F-168
inCome
–
–
–
–
–
–
–
–
–
–
–
–
–
–
134
916
–
–
4
–
–
–
138
916
amoUnts owed
by related Parties
1,018
–
339
–
226
–
32
–
–
–
–
–
–
–
1,768
–
–
–
966
766
–
979
4,349
1,745
amoUnts owed
to related Parties
–
68,300
–
15,000
–
15,000
–
1,700
–
8,494
3,481
4,086
4,904
614
5,721
4,149
–
1,189
171
485
196
1,569
14,473
120,586
77

78
Dufrital SpA is one of the major subsidiaries in Italy. Dufrital SpA operates duty-free and duty-paid shops in Milan’s
Malpensa and Linate airports. These shops are operated under agreements with Milan’s airport authority, the Societa
Esercizi Aeroportuali SpA, which holds a 40 % interest in Dufrital SpA. Dufrital SpA is required to compensate the airport
authority through concession fees based on turnover with a minimum annual guaranteed amount. In 2005, the total
amounts paid amounted to CHF 29.3 million ( 2004: CHF 28.8 million ).
In addition to his employment relationship with the Group, Mr. Dante Marro, the Chief Operating Officer for Region Europe
and member of the Group Executive Committee, acting through GSA Srl Gestione Spazi Attrezzati ( ‘GSAS’ ), was
granted rights of usufruct over 10% of the Company‘s shareholding in both its 60 % majority owned operating subsidiary
Dufrital SpA and its wholly owned subsidiary Dufry Shop Finance Ltd Srl in 2002. The rights of usufruct granted to GSAS,
which will expire at the latest on December 31, 2020, permit it to enjoy the benefits of share ownership, including the
receipt of dividends, even though the shares remain vested in a subsidiary. Upon expiration of the rights of usufruct,
provided that the total profits of the aforementioned companies shall not have been declared as dividends, GSAS shall
be entitled to receive 65 and 10 %, respectively, of all withheld profits accumulated as reserves on the balance sheets of
Dufrital SpA and Dufry Shop Finance Ltd Srl as at December 31, 2020. In 2005, the amount paid amounted to CHF 0.2
million ( 2004 : CHF 0.5 million ).
Further, the former owners of the Dufry Travel Retail business have agreed with the Group to assume the obligations
and liabilities with respect to any claims against the Group by Mr Dante Marro arising from certain stock and other rights
claimed by him which originate prior to the acquisition of 75 % of the Dufry Travel Retail business by Dufry Ltd in March
2004, except for claims relating to his current employment relationship, the aforementioned rights of usufruct and any
claims that may arise against the Group as and from March 2004.
In addition to his employment relationship with the Group, Mr Jose Gonzalez, the Chief Operating Officer for Region
Americas & Caribbean and member of the Group Executive Committee, owns 26.3% of the share capital of the subsidiary
Puerto Libre International SA ( ‘PLISA’ ). PLISA operates the Group’s concessions at Managua Airport, Nicaragua and its
Nicaraguan border shops.
Compensations paid out to key management personnel of the Group were made as follows :
in thousands of CHF
Short-term employee benefits
Post-employment pension and other benefits
In addition, Dufry granted a bonus of CHF 3.2 million to certain members of key management upon completion of the
initial public offering.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-169
2005
4,015
496
2004
3,396
525

24 PrinCiPal ForeiGn exChanGe rates aPPlied For ValUation and translation
in CHF
1 USD
1 EUR
100 AED
100 MXN
100 SGD
aVeraGe rates
1.2454
1.5484
33.904
11.433
74.853
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
31. 12. 05 31. 12. 04
ClosinG rates
1.3125
1.5575
35.730
12.190
78.760
F-170
aVeraGe rates
1.2423
1.5436
33.821
10.968
73.515
ClosinG rates
1.1325
1.5425
30.802
10.120
69.300
79

80
25 seGment inFormation
The Group’s risks and returns are predominantly affected by the fact that it operates in different countries. Therefore, the
Group reports segmental information in its financial statements in the same way as it does internally to senior management,
i. e. using geographical areas as its primary segments.
There is only one business segment, travel retail. The wholesale and the vending machine business of the previous
owner of the Dufry Group were not part of the acquisition and are therefore no longer with the Group.
The geographical segments reported are broken down as follows : Europe ( incl. headquarters), Africa, Eurasia & Asia
and Americas & Caribbean.
in thousands of CHF
eUroPe aFriCa
Years ended December 31 2005
2004
2005
Net sales – third parties
327,513 269,727 127,919
Net sales – intercompanies
96,523 63,907
–
net sales
424,036 333,634 127,919
Advertising income
turnover
earnings before interest and taxes ( ebit )
Financial expenses
Financial income
Income from associates
Income taxes
net earninGs
Equity holders of the parent
Minority interest
Segment assets
Unallocated corporate assets
total assets
Segment liabilities
Unallocated corporate liabilities
total liabilities
Capital expenditure
Depreciation and amortization
Non-cash result other than depreciation
Number of full time equivalents (as per December 31)
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-171
11,469
435,505
28,251
339,911
131,360
18,877
6,532
7,242
995
8,049
341,683
5,797
330,059
108,275
5,242
5,392
7,515
907
138
128,057
10,105
78,397
38,863
3,614
5,994
1,696
667
2004
105,359
–
105,359
77
105,436
4,838
82,247
42,520
4,120
5,189
1,697
619

eUrasia & asia ameriCas & Caribbean eliminations total
2005
149,941
63
150,004
1,361
151,365
9,762
76,142
23,343
4,558
3,578
1,884
640
2004
113,571
366
113,937
1,035
114,972
11,037
57,183
20,886
2,073
2,403
93
723
2005
327,519
–
327,519
4,059
331,578
26,657
310,684
100,896
72,013
7,561
1,924
2,117
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
2004
233,684
–
233,684
3,010
236,694
21,661
164,732
38,033
6,823
5,795
15,169
1,701
2005
–
( 96,586 )
( 96,586 )
( 89 )
( 96,675 )
( 3,300 )
(140,017)
(58,227)
F-172
–
–
–
–
2004
–
( 64,273 )
( 64,273 )
–
( 64,273 )
( 111 )
(111,425)
(39,031)
–
–
–
–
2005
932,892
–
932,892
16,938
949,830
71,475
( 15,069 )
9,321
398
( 13,439 )
52,686
41,560
11,126
665,117
165,973
831,090
236,235
148,819
385,054
99,062
23,665
12,746
4,419
2004
722,341
–
722,341
12,171
734,512
43,222
( 10,209 )
5,415
1,630
( 11,685 )
28,373
15,113
13,260
522,796
19,001
541,797
170,683
231,592
402,275
18,258
18,779
24,474
3,950
81

82
26 earninGs Per share
Basic
Basic earnings per share are calculated by dividing the net earnings attributable to equity holders of the parent by the
weighted average number of shares outstanding during the year. The calculation of earnings per share for all periods
presented has been adjusted to include the impact of the share split as of November 17, 2005 ( see note 30 for a detailed
description of the share split ).
in thousands of CHF
Net earnings attributable to equity holders of the parent
Weighted average number of ordinary shares outstanding
Basic earnings per share in CHF
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
2005
41,560
10,454
3.98
2004
15,113
7,773
1.94
Diluted
Diluted earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to
assume conversion of all dilutive potential ordinary shares. The Company has no categories of dilutive potential ordinary
shares in the reporting period. Hence the diluted earnings per share are the same as basic earnings per share.
F-173

27 nUmber oF retail shoP ConCessions
Dufry companies enter into arrangements with airports, seaports, railway stations and other areas to operate shops,
which sell part or the total of the product-range mentioned in note 1. Most of the concession providers are public or
semi-public owned companies. Such shop concession arrangements involve the concession providers conveying for the
period of the concession to Dufry shops acting as operators the right to sell a predefined assortment of products to a
traveling public.
The arrangements typically define :
— the duration
— the nature of remuneration
— the assortment of products to be sold
— the location
They may encompass one or several shops and are awarded in a public tender or in a negotiated deal. The depreciation
of the tangible assets in such operations is done over the economic life or the duration of the arrangement, whatever
is shorter. In such cases where the remuneration is defined in form of a guaranteed minimum, such arrangement may
fulfill the definition of an onerous contract. In such instance, the discounted net future cash flow is assessed and provisioned.
Actually, no concession agreements are provisioned.
Dufry Group operates 320 retail shops in 29 countries at year-end. They operate under the following concession schemes
in force in the following years including extension :
Total number of shops
with concession agreements existing in :
of which fixed fees and /
or proportional fees 1
of which proportional fees to sales
of which fixed fees
320
163
97
60
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
2006 2007 2008 2009 2010 2011+
1 There are two possible combinations: a ) the agreement includes a fixed fee and additionally proportional fees to sales, or b ) the higher of a fixed fee or
proportional fee.
292
150
90
52
F-174
262
140
74
48
235
119
72
44
223
109
70
44
185
86
70
29
83

84
28 aCqUisition oF sUbsidiaries
At the end of February 2004, the Company acquired 75 % of the shares of Dufry International Ltd and Dufry Investment
Ltd for a consideration of CHF 145.8 million and USD 7.5 million. The acquired business contributed turnover of CHF
734.5 million for the period March 1, 2004 to December 31, 2004. If the acquisition had occurred on January 1, 2004 Group
turnover would have been CHF 850.5 million and the earnings before interest and taxes ( EBIT ) CHF 48.6 million. Details
of net assets acquired and goodwill are listed below.
Purchase consideration
in thousands of CHF
Consideration in CHF
Consideration in USD
Total purchase consideration
Fair value of net assets acquired
Goodwill
The assets and liabilities arising from the acquisition are as follows :
Fair value of acquired assets and liabilities
in thousands of CHF
Cash and cash equivalents
Other accounts receivable
Inventories
Other assets
Concession rights
Brands
Non-current assets
assets
Trade payables
Financial debt
Other accounts payable
Deferred tax liabilities
Provisions
Minority interest
Equity
liabilities and eqUity
Net assets
Minority interest (25 %)
Net assets acquired
Purchase consideration settled in cash
Cash and cash equivalents
in subsidiaries acquired
Cash outflow on acquisition
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-175
Fair ValUe
2004
48,602
60,290
127,365
20,652
189,843
38,049
41,215
526,016
61,588
114,666
90,494
42,172
23,437
32,642
161,017
526,016
161,017
40,254
120,763
155,180
48,602
106,578
2004
145,750
9,430
155,180
120,763
34,417
CarryinG
amoUnt
48,602
60,290
127,365
20,652
46,214
–
41,215
344,338
61,588
114,666
90,494
2,456
23,437
3,891
47,806
344,338

Purchase of the minority share of dufry international ltd and dufry investment ltd
On July 25, 2005, Dufry acquired the remaining 25 % of the shares of Dufry International Ltd and Dufry Investment Ltd for
a first consideration of CHF 90.0 million. On November 14, 2005, Dufry Ltd agreed to pay an additional and final consideration
to the former shareholders in relation to the above mentioned acquisition that brought the total consideration to
CHF 128.0 million. This transaction generated a goodwill of CHF 80.2 million in accordance with the parent entity extension
method. In addition, a non-compete agreement was recognized in the amount of CHF 1.8 million.
Purchase of the subsidiaries of young Caribbean Jewellery ltd
With effective date October 1, 2005, the Group increased through the Duty Free Caribbean Group its investment in eight
subsidiaries of Young Caribbean Jewellery Company Ltd from 50 % to 100 % for a net purchase consideration of USD 12.0
million. The majority of the payments to settle the acquisition are due in 2006.
The fair values of the assets and liabilities acquired were broken down to the following positions: The assets and liabilities
related mainly to inventories ( USD 13.4 million ), accounts payable ( USD 7.9 million ), and loans payable ( USD 2.8
million ). The net cash position amounted to USD 0.6 million owed to banks as a short-term bank overdraft. The turnover
and net earnings recognized in the consolidated income statement ending December 31, 2005 from the acquired entities
amounts to CHF 10.6 million and CHF 1.1 million respectively. The total of all net assets acquired had a fair value of
USD 2.1 million. As such, the goodwill recognized to generate synergies between the acquired and the existing business
amounted to USD 9.9 million.
29 disPosal oF sUbsidiaries and other inFormation
On December 15, 2005, Dufry International Ltd sold its 66 % shares in Phillip, OOO in Kaliningrad. The net assets of this
company amounted to minus CHF 0.6 million. At the time of sale the net cash disposed of amounted to CHF 0.3 million.
The transaction generated a net gain on sale of subsidiary of CHF 0.5 million.
On October 22, 2005, a tropical hurricane devastated certain assets of the Group in the area of Cancun and Cozumel. The
Group’s inventories and tangible assets were severely damaged and the business was interrupted. Claims have been
filed with the respective insurers to compensate for the losses incurred. This event had no material effects on the income
for the current year.
30 eqUity
Outstanding share capital
As of January 1, 2005, the share capital was made up of 4.5 million registered shares with a nominal value of CHF 10
each. On July 25, 2005, additional 1.5 million registered shares with a nominal value of CHF 10 each were issued. The
capital increase included a cash contribution of CHF 75.3 million and a debt-to-equity swap of CHF 60.0 million. On November
17, 2005, each share with a nominal value of CHF 10 was split into two shares, each with a nominal value of CHF
5. On December 5, 2005, for purposes of the initial public offering ( IPO ), additional 2,062,500 shares were issued, each
with a nominal value of CHF 5. These transactions led to a share capital of CHF 70.3 million with 14,062,500 outstanding
shares, each with a nominal value of CHF 5 as of December 31, 2005.
Proceeds from initial public offering ( IPO )
In December 2005, the Company completed an initial public offering (IPO) of 2,062,500 ordinary shares offered at CHF
80 per share. The public offer was fully subscribed and resulted in gross proceeds of CHF 165.0 million. The Company
incurred CHF 20.1 million on directly attributable equity transaction costs and the resultant net proceeds from IPO, net
of a deferred tax credit of CHF 1.6 million, were CHF 146.5 million.
Authorized and conditional share capital
As per Dufry Ltd’s extraordinary shareholders meeting of November 17, 2005, an authorized capital of CHF 20.5 million
and a conditional capital in the maximum amount of CHF 7.5 million were created. During the Board of Directors meet-
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-176
85

86
ing from December 5, 2005, it was decided to use CHF 10.3 million of the authorized capital and to increase Dufry Ltd’s
share capital by that amount.
Total recognized income and expenses for the period
Total recognized income and expenses for the period amounted to CHF 70.6 million in 2005 and CHF 14.4 million in 2004.
Of these amounts CHF 53.8 million and CHF 5.7 million respectively were attributable to equity holders of the parent.
31 eVents aFter the balanCe sheet date
Acquisition of Brasif
On March 17, 2006, Dufry signed a binding agreement to acquire 80 % of the travel retail business of Brasif and its logistics
platform Eurotrade for a total consideration of USD 400 million. Brasif is the leading duty free operator in Brazil and
operates 51 shops with close to 1,500 employees. The remaining 20 % will be acquired by certain funds managed by the
main shareholder of Dufry, Advent International Corporation.
Dufry’s 80 % stake in this acquisition shall be fully financed through a structured bank financing which shall also provide
Dufry with additional means for further expansion and growth. The transaction closed on March 23, 2006.
Duty Free Caribbean Group
As of February 2, 2006, Dufry signed an agreement to acquire an additional 4.6 % shares of Duty Free Carribean ( Holdings
) Ltd ( ‘DFC’ ) for a price of USD 5.5 million. Dufry also subscribed the sum of USD 13.0 million toward the issuance of
additional shares of DFC. These transactions will result in Dufry owning 60 % of DFC ( 50 % as of December 31, 2005 ).
The minority shareholder has an option up to December 31, 2007 to sell to the stock market 20 % of the share capital of
the Duty Free Caribbean (Holdings) Ltd or, in the event that the company shall not be publicly traded on December 31,
2007 has an option to sell to the Dufry Group up to 20 % of the share capital of the company for a total price based on
a valuation of a multiple of earnings before interest, taxes, depreciation and amortization ( EBITDA ) minus net interest
bearing debt.
Restricted Stock Unit Plan (RSU)
Dufry plans to implement a restricted stock unit plan for certain members of the Group’s management.
Under the RSU plan, the Company plans to grant to the participants in 2006 a right to receive on the second anniversary
of the IPO, free of charge, up to approximately 58,000 shares in the aggregate, based upon the offer Price per share of
CHF 80.
In addition, the Company plans to grant to the RSU plan participants, on the date of the first anniversary of the IPO, a
right to receive, free of charge, on the second anniversary of the IPO such numbers of shares in the aggregate based on
the price per share then prevailing in order to provide for the incentives discussed below.
The rights granted in 2006 will vest on the first anniversary of the offering, on December 6, 2006. The rights granted on
the first anniversary of the offering will vest on the second anniversary of the offering, provided that the share price at
the date of each vesting is equal to or higher than 101 % of the share price at the offering or at the grant date. If such
average price per share at the respective vesting dates is below the level of 101 % of the share price at grant, no rights
will vest and no shares will be allocated.
Initial public offering ( IPO ) Employee Share-based plan
In connection with the IPO, Dufry plans to adopt a ‘phantom’-share based plan for employees of the Group. Under this
plan, the Company intents to grant, free of charge, a certificate to each employee that represents the right to receive
from the Company as and from the first anniversary of the completion of the offering a cash amount equivalent to the
price of a share at the date of the transfer of the certificate to the Company. However, the holder will not have voting,
dividend or other shareholder rights.
Dufry Annual Report 2005 — Notes to the Consolidated Financial Statements
F-177

most imPortant GroUP ComPanies
as of December 31, 2005
eUroPe
dufry ltd
Dufry Investment Ltd
Dufry International Ltd
Dufry Travel Retail Ltd
Dufry Basel-Mulhouse Ltd
Dufry Samnaun Ltd
Dufrital SpA
Cid Italia SpA
Dufry Free Shop SpA
Dufry Duty Free Italia Srl
Air Shop S. r. l.
Dufry Shop Finance Ltd Srl
Dufry France SA
Dufry Paris SAS
Food Village ( Schiphol ) BV
Dufry Hellas Ltd
aFriCa
Dufry Tunisie SA
Dufry Maroc SARL
Dufry & G. T. D. C. Ltd
asia & eUrasia
Dufry East OOO
Dufry Eurasia FZE
Dufry Sharjah Ltd
Dufry Singapore Pte Ltd
Dufry Cambodia Ltd
ameriCas & Caribbean
Dufry America, Inc.
Dufry America Services, Inc.
Dufry Houston DF & Retail Part.
Dufry Newark Inc.
Dufry New York Retail Partnership
Dufry Mexico SA de CV
Dufry Yucatan SA de CV
Dufry Frontera SA de CV
Dufry Aruba N. V.
Dufry Trinidad Ltd
Inversiones TUNC, SA
Flagship Retail Services Inc
Duty Free Caribbean Group 1
1 Duty Free Caribbean Group consists of 16 operational subsidiaries in the Caribbean.
Dufry Annual Report 2005 — Most important group companies
loCation
Basel
Basel
Basel
Basel
Basel / Mulhouse
Samnaun
Milan
Milan
Milan
Milan
Milan
Milan
Paris
Paris
Amsterdam
Athens
Tunis
Casablanca
Accra-North
Moscow
Sharjah
Sharjah
Singapore
Phnom Pen
Miami
Miami
Houston
Newark
New York
Mexico DF
Mexico DF
Monterrey
Oranjestad
Port of Spain
Santo Domingo
Charlestown
Bridgetown
CoUntry
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Italy
Italy
Italy
Italy
Italy
Italy
France
France
Netherlands
Greece
Tunisia
Morocco
Ghana
Russia
U. A. Emirates
U. A. Emirates
Singapore
Cambodia
USA
USA
USA
USA
USA
Mexico
Mexico
Mexico
Aruba
Trinidad
Dominican Republic
St. Kitts & Nevis
Barbados
F-178
ownershiP
2005
in %
n / a
100
100
100
100
100
60
60
100
100
60
100
100
100
60
100
100
80
63
100
100
51
100
100
100
100
75
100
88
100
100
100
80
60
100
100
50
CUrrenCy
CHF
CHF
CHF
CHF
CHF
CHF
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
MAD
USD
USD
AED
AED
SGD
USD
USD
USD
USD
USD
USD
MXN
MXN
MXN
USD
USD
USD
USD
USD
share CaPital 2005
in thoUsands
70,313
1,000
1,000
5,000
100
100
258
208
251
10
10
10
1,000
400
681
147
2,300
2,500
413
712
350
2,054
13,300
1,231
5
398
1
1,501
1,208
129,069
7,550
50,00
1,000
392
0
0
14,000
87

88
To the General Meeting of
Dufry Ltd, Basel
Basel, April 19, 2006
Report of the group auditors
� Ernst & Young Ltd
Assurance & Advisory
Business Services
Aeschengraben 9
P.O. Box
CH-4002 Basel
� Offices in Aarau, Baden, Basel, Berne, Geneva, Lausanne, Lucerne, Lugano, St.Gallen, Zug, Zurich.
Member of the Swiss Chamber of Auditors.
� Phone +41 58 286 86 86
Fax +41 58 286 86 00
www.ey.com/ch
As auditors of the group, we have audited the consolidated financial statements (balance sheet,
income statement, statement of cash flows, statement of changes in equity and notes / pages 44
to 87) of Dufry Ltd for the year ended December 31, 2005. Certain financial statements of subsidiaries
have been audited by other auditors.
These consolidated financial statements are the responsibility of the board of directors. Our responsibility
is to express an opinion on these consolidated financial statements based on our
audit. We confirm that we meet the legal requirements concerning professional qualification
and independence.
Our audit was conducted in accordance with Swiss Auditing Standards and with the International
Standards on Auditing (ISA), 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 give a true and fair view of the financial
position, the results of operations and the cash flows in accordance with International Financial
Reporting Standards (IFRS) and comply with Swiss law.
We recommend that the consolidated financial statements submitted to you be approved.
Ernst & Young Ltd
Bruno Chiomento Lukas Wehrli
Certified Public Accountant
(in charge of the audit)
Swiss Certified Accountant
F-179

(This page has been left blank intentionally.)
F-180

(This page has been left blank intentionally.)
F-181

Dufry AG:
Audited Statutory Financial Statements as of December 31, 2005.................................................. F-182
Income Statement ...................................................................................................................................... F-183
Balance Sheet............................................................................................................................................. F-184
Notes to the Financial Statements ............................................................................................................ F-185
Appropriation of Available Earnings ....................................................................................................... F-187
Report of the Statutory Auditors............................................................................................................... F-188
F-182

Financial StatementS DuFry ltD
aS oF December 31, 2005
income Statement
in thousands of CHF
Gain from sale of investments
Management and franchise fees income
Financial income
total income
Personnel expenses
Amortization
General and administrative expenses
Management and franchise fees expenses
Other expenses
Financial expenses
Taxes
total expenSeS
net income ( net loss )
Dufry Annual Report 2005 — Financial Statements Dufry Ltd
F-183
2005
18,200
4,357
213
22,770
1,740
506
817
1,005
671
1,378
181
6,298
16,472
04. 11. 03
– 31. 12. 04
–
–
28
28
1,560
–
1,283
–
562
1,427
25
4,857
( 4,829 )
89

90
balance Sheet
aSSetS
in thousands of CHF
Cash and cash equivalents
Receivables – intercompanies
Receivables – related parties
Receivables – third parties
Other current assets
current assets
Investments
Intangible assets
non-current assets
total aSSetS
liabilitieS anD ShareholDerS’ equity
in thousands of CHF
Payables – intercompanies
Payables – third parties
Other current liabilities
current liabilities
Payables – shareholders
Other non-current liabilities
non-current liabilities
total liabilities
Share capital
Share premium
Accumulated losses
Net income ( Net loss )
Shareholders‘ equity
total liabilitieS anD ShareholDerS’ equity
Dufry Annual Report 2005 — Financial Statements Dufry Ltd F-184
31. 12. 05
3,551
108,300
1,616
21
146
113,634
242,397
21,327
263,724
377,358
31. 12. 05
1,822
3,980
10,676
16,478
–
3,937
3,937
20,415
70,313
274,987
( 4,829 )
16,472
356,943
377,358
31. 12. 04
3,467
100
–
9
37
3,613
145,855
–
145,855
149,468
31. 12. 04
6,470
1,472
1,355
9,297
100,000
–
100,000
109,297
45,000
–
–
( 4,829 )
40,171
149,468

noteS to the Financial StatementS
comparativeS
Certain reclassifications to the 2004 financial statements and related notes have been made to conform to the 2005
presentation.
SiGniFicant inveStmentS
in thousands of CHF
Dufry international ltd, basel
Book value
Share capital
Ownership ( in % )
Dufry investment ltd, basel
Book value
Share capital
Ownership ( in % )
Dufry management ltd, basel
Book value
Share capital
Ownership ( in % )
31. 12. 05
–
–
–
242,297
1,000
100 %
100
100
100 %
31. 12. 04
145,000
1,000
75 %
750
1,000
75 %
100
100
100 %
On July 25, 2005, 21 % of the investment in Dufry International Ltd was sold to Dufry Investment Ltd, generating a gain
from sale of investment of CHF 18.2 million and the remaining participation was contributed to the equity of Dufry Investment
Ltd.
Guarantee commitment reGarDinG SwiSS value aDDeD tax (vat)
Dufry Ltd forms together with Dufry Travel Retail Ltd, Dufry Investment Ltd, Dufry International Ltd, Dufry Samnaun
Ltd, Dufry Basel-Mulhouse Ltd, Dufry Emirates Ltd and Dufry Management Ltd a tax group for the Swiss Federal Tax
Administration – Main Division VAT. As such, Dufry Ltd is jointly and severally liable for the Value Added Tax owed by the
group.
SiGniFicant ShareholDerS’ participation
As of December 31, 2005, Travel Retail Investments SCA, Luxembourg owned 53 % and Areas SA, Barcelona, Spain
owned 18 % of the share capital of Dufry Ltd.
authorizeD anD conDitional Share capital
As per Dufry Ltd’s extraordinary shareholders meeting of November 17, 2005, an authorized capital of CHF 20.5 million
and a conditional capital up to a maximum amount of CHF 7.5 million were created. During the Board of Directors meeting
of December 5, 2005, it was decided to use CHF 10.3 million of the authorized capital and to increase Dufry Ltd’s
share capital by that amount.
Dufry Annual Report 2005 — Notes to the Financial Statements F-185
91

92
loanS payable-ShareholDerS
in thousands of CHF
acquisition debt related parties
Funds managed by Advent International Corp ( USA )
Areas SA ( Spain )
Petrus Pte. Ltd ( Singapore )
Witherspoon Investments LLC ( USA )
total
Subordinated debt related parties
Funds managed by Advent International Corp ( USA )
Areas SA ( Spain )
Petrus Pte. Ltd ( Singapore )
Witherspoon Investments LLC ( USA )
total
Dufry Annual Report 2005 — Notes to the Financial Statements F-186
31. 12. 05
–
–
–
–
–
–
–
–
–
–
31. 12. 04
27,320
6,000
6,000
680
40,000
40,980
9,000
9,000
1,020
60,000

appropriation oF available earninGS
The Board of Directors proposes to the Ordinary General Meeting of Dufry Ltd the following appropriation of available
earnings :
in thousands of CHF
Accumulated losses
Net income ( Net loss ) for the year
Available earnings as of December 31
Transfer to general legal reserves
to be carried forward
Dufry Annual Report 2005 — Notes to the Financial Statements F-187
31. 12. 05
( 4,829 )
16,472
11,643
( 582 )
11,061
31. 12. 04
–
( 4,829 )
( 4,829 )
–
( 4,829 )
93

94
To the General Meeting of
Dufry Ltd, Basel
Basel, April 19, 2006
Report of the statutory auditors
! Ernst & Young Ltd
Assurance & Advisory
Business Services
Aeschengraben 9
P.O. Box
CH-4002 Basel
! Offices in Aarau, Baden, Basel, Berne, Geneva, Lausanne, Lucerne, Lugano, St.Gallen, Zug, Zurich.
Member of the Swiss Chamber of Auditors.
! Phone +41 58 286 86 86
Fax +41 58 286 86 00
www.ey.com/ch
As statutory auditors, we have audited the accounting records and the financial statements
(balance sheet, income statement and notes / pages 89 to 93) of Dufry Ltd for the year ended
December 31, 2005.
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 Swiss Auditing Standards, which require that an
audit be planned and performed to obtain reasonable assurance about whether the financial
statements are free from material misstatement. We have examined on a test basis evidence
supporting the amounts and disclosures in the financial statements. We have also assessed the
accounting principles used, significant estimates made and the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the accounting records and financial statements and the proposed appropriation
of available earnings comply with Swiss law and the company’s articles of incorporation.
We recommend that the financial statements submitted to you be approved.
Ernst & Young Ltd
Bruno Chiomento Lukas Wehrli
Certified Public Accountant
(in charge of the audit)
Swiss Certified Accountant
F-188

(This page has been left blank intentionally.)
F-189

Dufry AG:
Unaudited Consolidated Financial Statements for the First Half Year ended June 30, 2008..... F-190
Interim Consolidated Income Statement.................................................................................................. F-191
Interim Consolidated Balance Sheet ........................................................................................................ F-192
Interim Consolidated Cash Flow Statement ............................................................................................ F-193
Interim Consolidated Statement of Changes in Equity ........................................................................... F-194
Notes to the Interim Consolidated Financial Statements ........................................................................ F-195
F-190

unAudiTed inTeriM condensed
consolidATed finAnciAl sTATeMenTs
As of June 30, 2008
in thousands of Chf
Net sales
Advertising income
Turnover
Cost of sales
Gross profiT
6
Selling expenses, net
Personnel expenses
General expenses, net
Depreciation, amortization and impairment
Other operational expenses
Other operational income
Earnings before interest and taxes (EBit)
Interest income
Interest expenses
Foreign exchange gain
Earnings before taxes (EBt)
Income taxes
neT eArninGs
attriButaBlE to:
Equity holders of the parent
Minority interest
Earnings pEr sharE attriButaBlE
to Equity holdErs of thE parEnt
Basic earnings per share in CHF
Diluted per share in CHF
EBitda (before other operating result)
EBit
DuFry HAlF yEAr rEPOrt 2008
unAudiTed inTeriM condensed
consolidATed finAnciAl sTATeMenTs
inTeriM consolidATed incoMe sTATeMenT
Depreciation, amortization and impairment
EBitda
Other operational expenses
Other operational income
EBitda (before other operational result)
F-191
notE
5
unauditEd
1. 1. – 30. 6. 08
911,535
23,264
934,799
427,031
507,768
196,614
119,394
70,167
33,232
15,850
(6,342)
78,853
3,030
(15,534)
6,393
72,742
17,249
55,493
27,977
27,516
1.99
1.98
78,853
33,232
112,085
15,850
(6,342)
121,593
unauditEd
1. 1. – 30. 6. 07
877,574
19,371
896,945
426,651
470,294
182,831
113,590
67,982
34,352
6,670
(18,936)
83,805
1,397
(20,344)
5,308
70,166
13,194
56,972
35,545
21,427
2.53
2.53
83,805
34,352
118,157
6,670
(18,936)
105,891

inTeriM consolidATed bAlAnce sheeT
AsseTs
in thousands of Chf
Cash and cash equivalents
trade and credit card receivables, net
Income tax receivables
Other accounts receivable
Inventories
Current assets
Property, plant and equipment
Intangible assets
Financial investments
Other non-current assets
Deferred tax assets
non-current assets
ToTAl AsseTs
liAbiliTies And shAreholders’ equiTy
in thousands of Chf
trade payables
Financial debt, short-term
Income tax payables
Other liabilities
Provisions, short-term
Current liabilities
Financial debt, long-term
Other non-current liabilities
Deferred tax liabilities
Post-employment benefit obligations
Provisions, long-term
non-current liabilities
ToTAl liAbiliTies
Equity attributable to equity holders of the parent
Minority interest
total equity
ToTAl liAbiliTies And shAreholders‘ equiTy
DuFry HAlF yEAr rEPOrt 2008
uNAuDItED INtErIM CONDENSED
CONSOlIDAtED FINANCIAl StAtEMENtS
F-192
notE
8
9
10
notE
8, 11
12
8, 11
12
14, 17
7
unauditEd
30. 6. 08
145,255
62,905
7,182
93,657
332,492
641,491
115,962
977,732
52,460
16,074
19,029
1,181,257
1,822,748
unauditEd
30. 6. 08
186,853
129,186
15,413
145,901
4,952
482,305
450,076
7,286
162,762
9,501
3,242
632,867
1,115,172
475,594
231,982
707,576
1,822,748
auditEd
31. 12. 07
125,077
52,026
10,176
79,213
291,443
557,935
128,487
1,052,026
–
16,980
20,986
1,218,479
1,776,414
auditEd
31. 12. 07
165,599
16,016
12,719
158,228
10,941
363,503
479,482
8,993
172,927
10,123
3,542
675,067
1,038,570
507,758
230,086
737,844
1,776,414

8 DuFry HAlF yEAr rEPOrt 2008
uNAuDItED INtErIM CONDENSED
CONSOlIDAtED FINANCIAl StAtEMENtS
inTeriM consolidATed cAsh flow sTATeMenT
in thousands of Chf
Earnings before taxes (EBt)
adjustmEnts for
Depreciation, amortization and impairment
Other non-cash items
(Decrease) / increase in allowances and provisions
(Gain) / loss on sale of property, plant and equipment
Net gain on sale of investments
Gain on unrealized foreign exchange differences
Interest expenses
Interest income
Cash flow before working capital changes
Increase in trade and other accounts receivable
Increase in inventories
Increase in trade and other accounts payable
Cash flow generated from operations
Income taxes paid
net cash flows from operating activities
Cash flow from invEsting aCtivitiEs
Sale of interests in subsidiaries, net of cash
Acquisition of subsidiaries, net of cash
Purchase of financial investments
Purchase of intangible assets
Purchase of property, plant and equipment
Project developments in progress
Proceeds from sale of property, plant and equipment
Interest received
net cash flows from / (used in) investing activities
Cash flow from finanCing aCtivitiEs
Purchase of treasury shares
Dividends paid to group shareholders
Dividends paid to minority shareholders
Proceeds from borrowings
repayment of borrowings
Proceeds from (repayment of) loan
Interest paid
net cash flows from / (used in) financing activities
Currency translation differences
increase (decrease) in cash and cash equivalents
Cash and Cash EquivalEnts at thE
– beginning of the period
– end of the period
F-193
notE
6
10
15
unauditEd
1. 1. – 30. 6. 08
72,742
33,232
3,867
(1,778)
(28)
–
(10,044)
15,534
(3,030)
110,495
(31,360)
(65,465)
28,524
42,194
(8,932)
33,262
–
(3,200)
(52,430)
(11,648)
(15,413)
(3,069)
1,853
3,020
(80,887)
(4,212)
(14,063)
(11,297)
120,486
(7,092)
3,320
(13,757)
73,385
(5,582)
20,178
125,077
145,255
unauditEd
1. 1. – 30. 6. 07
70,166
34,352
2,755
2,225
29
(17,013)
(5,752)
(1,396)
20,362
105,728
(26,571)
(49,152)
31,592
61,597
(13,173)
48,424
64,745
–
–
(4,187)
(25,765)
–
1,185
1,381
37,359
(7,885)
(14,063)
(6,619)
5,341
(72,952)
(351)
(20,555)
(117,084)
7,808
(23,493)
102,390
78,897

inTeriM consolidATed sTATeMenT of chAnGes in equiTy
in thousands of Chf
Balance as of 1.1.07
Currency translation differences
Net gain on hedge of investment
total income and expense for the period
recognized directly in equity
Net earnings
total income and expense for the period
Purchase of treasury shares
Share-based payment
Changes in participation of minority
interests
Dividends to shareholders
Dividends to minority interests
Balance as of 30.6.07
Balance as of 1.1.08
Currency translation differences
Net gain on hedge of investment
total income and expense for the period
recognized directly in equity
Net earnings
total income and expense for the period
Purchase of treasury shares
Distribution of treasury shares
Share-based payment
Changes in participation of minority
interests
Dividends to shareholders
Dividends to minority interests
Balance as of 30.6.08
sharE
Capital
70,313
–
–
–
–
–
–
–
–
70,313
70,313
–
–
–
–
–
–
–
–
sharE
prEmium
256,514
–
–
–
–
–
–
–
–
256,514
256,514
–
–
–
–
–
–
–
–
– –
– –
– –
70,313 256,514
DuFry HAlF yEAr rEPOrt 2008
uNAuDItED INtErIM CONDENSED
CONSOlIDAtED FINANCIAl StAtEMENtS
attriButaBlE to Equity holdErs of thE parEnt
trEasury
sharEs
–
–
–
–
–
–
(7,885)
–
–
–
(7,885)
(13,107)
–
–
–
(4,212)
13,107
–
translation
rEsErvEs
(11,540)
7,860
(2,870)
4,990
–
4,990
–
rEtainEd
Ear nings
166,837
–
–
–
35,545
35,545
2,755
233,336
–
–
–
27,977
27,977
–
(13,107)
3,713
total
482,124
7,860
(2,870)
4,990
35,545
40,535
(7,885)
2,755
– – –
(14,063) (14,063)
– – –
(6,550) 191,074 503,466
(39,298)
(71,405)
25,826
(45,579)
– –
– (45,579)
–
–
–
507,758
(71,405)
25,826
(45,579)
27,977
(17,602)
(4,212)
–
3,713
– – – –
– – (14,063) (14,063)
– – – –
(4,212) (84,877) 237,856 475,594
F-194
9
minority
intErEst
173,022
1,802
–
1,802
21,427
23,229
–
20,242
(6,619)
209,874
230,086
(17,074)
–
(17,074)
27,516
10,442
–
–
154
2,597
–
(11,297)
231,982
total
Equity
655,146
9,662
(2,870)
6,792
56,972
63,764
(7,885)
2,755
20,242
(14,063)
(6,619)
713,340
737,844
(88,479)
25,826
(62,653)
55,493
(7,160)
(4,212)
–
3,867
2,597
(14,063)
(11,297)
707,576

noTes To The inTeriM condensed
consolidATed finAnciAl sTATeMenTs
1 corporATe inforMATion
10 DuFry HAlF yEAr rEPOrt 2008
noTes To The inTeriM condensed consolidATed
finAnciAl sTATeMenTs
the interim condensed consolidated financial statements of Dufry ltd and its subsidiaries for the six months
ended June 30, 2008 were authorized for issue in accordance with a resolution of the Board of Directors on
August 28, 2008.
Dufry ltd (‘Dufry’ or ‘the Company’) is a limited company domiciled in Basel, Switzerland, whose shares are
listed on the Swiss Stock Exchange (SWX).the Company is one of the world’s leading travel retail companies
with 466 shops worldwide.
2 bAsis of prepArATion And AccounTinG policies
Basis of preparation
the interim condensed consolidated financial statements are prepared in accordance with the International
Accounting Standard 34 (IAS 34 “Interim Financial reporting”). these interim financial statements should be
read in conjunction with the consolidated financial statements for the year ended December 31, 2007 as they
provide an update of previously reported information.
the preparation of the interim financial statements requires management to make estimates and assumptions
that affect the reported amounts of sales, expenses, assets, liabilities and disclosure of contingent liabilities
at the date of the interim financial statements. If in the future such estimates and assumptions, which are based on
management’s best judgment at the date of the interim financial statements, deviate from the actual circumstances,
the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change.
significant accounting policies
the accounting policies adopted in the preparation of the interim condensed consolidated financial statements
are consistent with those followed in the preparation of the Group’s annual financial statements for the year
ended December 31, 2007, except for the adoption of new Standards and Interpretations, noted below:
– IFrIC 14 IAS 19 – the limit on a Defined Benefit Asset, Minimum Funding requirements and their Interaction
(effective from January 1, 2008)
this Interpretation provides guidance on how to assess the limit on the amount of surplus in a defined benefit
scheme that can be recognized as an asset under IAS 19 Employee Benefits. As the Group’s defined benefit
schemes are not expected to be in surplus at year end, the Interpretation will have no impact on the financial
position or performance of the Group.
– IFrIC 12 Service Concession Arrangements (effective from January 1, 2008)
this Interpretation applies to service concession operators and explains how to account for the obligations
undertaken and rights received in service concession arrangements. No entity of the Group is a public service
provider and hence this Interpretation has no impact on the Group.
Where necessary, the comparatives have been reclassified or extended from previously reported results to take
into account any changes in presentation made in the annual report or these interim financial statements.
3 seAsonAliTy of operATions
the Group operates in different markets with seasonal variations in sales and operational results. Whereas
the high season in Europe and Africa is from July to October, in North- and South America as well as in the
Caribbean, it is from December to April. In the Asian region, the seasonality is well balanced throughout the
year. All regions have a strong month in December.
F-195

4 dividends pAid And proposed
DuFry HAlF yEAr rEPOrt 2008
NOtES tO tHE INtErIM CONDENSED CONSOlIDAtED
FINANCIAl StAtEMENtS
On May 8, 2008, the ordinary general assembly approved a dividend of CHF 1.00 (2007: CHF 1.00) per share in the
total amount of CHF 14,062,500 (2007: CHF 14,062,500), which was paid on May 14, 2008.
5 incoMe TAx
the major components of income tax expenses in the interim consolidated income statement are:
in thousands of Chf
Current income taxes
Deferred income taxes
ToTAl
the difference in deferred taxes results mainly from the acquisition of Dufry do Brasil in the first half 2006.
6 new operATions
acquisition of operation in prague
On March 1, 2008, the Group acquired 51 % of the voting shares of Dufry CE s.r.o, a privately owned company based
in Prague, Czech republic. this company, founded in March 2008 as spin-off of a local corporation, currently operates
seven duty free shops at the airport of Prague. the acquisition has been accounted for using the purchase
method of accounting. the interim condensed consolidated financial statements include the results of Dufry CE
s.r.o. for the period from the acquisition date until June 30, 2008.
the fair value of the identifiable assets and liabilities of the acquired company as at the date of acquisition and the
resulting goodwill were determined preliminary as follows:
in thousands of Chf
Property, plant and equipment
Concession rights
Inventories
Deferred tax liabilities
neT AsseTs
Dufry’s share in the net assets (51 %)
Goodwill arising on acquisition
ToTAl AcquisiTion cosTs
F-196
11
1.1. – 30.6.08
14,857
2,392
17,249
fair valuE
rECognizEd on
aCquisition
unauditEd
497
4,982
890
6,369
(1,196)
5,173
2,638
562
3,200
1.1. – 30.6.07
13,931
(737)
13,194
prEvious
Carrying
valuE
unauditEd
497
–
890
1,387
–
1,387

12
DuFry HAlF yEAr rEPOrt 2008
NOtES tO tHE INtErIM CONDENSED CONSOlIDAtED
FINANCIAl StAtEMENtS
the total acquisition cost comprised of a cash payment of CHF 3.2 million (CHF 3.2 million net of cash).
From the date of acquisition, Dufry CE s.r.o, has contributed CHF 3.3 million to the net sales of the Group and has
generated a net loss before interest and taxes of CHF 0.4 million. If the acquisition would have taken place at the
beginning of the year, the result would not have been significantly different since the company only started it’s
operations during March 2008.
the goodwill recognized above is attributed to the expected synergies and other benefits from combining the assets
and activities of Dufry CE s.r.o, with those of the Group.
7 seGMenT inforMATion
the Group’s risks and returns are predominantly affected by the fact that it operates in different countries.
therefore, the Group reports segmental information in its financial statements in the same way as it does internally
to senior management, using geographical segments.
the geographical segments reported are broken down as follows: Europe (incl. HQ), Africa, Eurasia, North
America & Caribbean and South America.
in thousands of Chf
1.1. - 30.6.08
Net sales – third party
Net sales – intercompany
net sales
Advertising income
turnover
Earnings before interest and taxes (EBit)
Capital expenditure
Depreciation and amortization
Impairment / (reversal on impairment)
EuropE
inCl. hq
188,616
70,722
259,338
10,651
269,989
(4,163)
6,584
6,789
47
F-197
afriCa
92,617
–
92,617
16
92,633
8,569
3,399
3,409
–
Eurasia
124,105
–
124,105
1,155
125,260
12,481
3,233
3,170
(33)
north
amEriCa &
CariBBEan
204,165
7,010
211,175
3,295
214,470
11,181
11,302
9,191
–
south
amEriCa
302,032
–
302,032
8,147
310,179
50,785
2,543
10,659
-
Eliminations
–
(77,732)
(77,732)
–
(77,732)
–
–
–
–
total
911,535
–
911,535
23,264
934,799
78,853
27,061
33,218
14

in thousands of Chf
1.1. – 30.6.07
Net sales – third party
Net sales – intercompany
net sales
Advertising income
turnover
Earnings before interest and taxes (EBit)
Earnings before intercompany
management and franchise fees 1
Capital expenditure
Depreciation and amortization
Impairment
8 cAsh And neT debT
in thousands of Chf
Cash and cash equivalents
Notional cash pool
net
DuFry HAlF yEAr rEPOrt 2008
NOtES tO tHE INtErIM CONDENSED CONSOlIDAtED
FINANCIAl StAtEMENtS
Cash at bank includes an amount of CHF 83.5 million (at December 31, 2007: CHF 29.1 million) of a notional cash
pool, which are used to balance bank overdrafts included in financial debt, short-term.
in thousands of Chf
Cash and cash equivalents
Financial debt, short-term
Financial debt, long-term
net debt
EuropE
inCl. hq
191,471
60,565
252,036
8,092
260,128
23,480
16,901
7,018
5,409
1,155
afriCa
76,953
–
76,953
–
76,953
6,951
9,116
2,037
3,651
–
Eurasia
104,098
–
104,098
720
104,818
Dufry invested CHF 52.4 million during 2008 in the acquisition of the participation in Advent-Hudson llC (see
note 10).
7,739
9,254
5,920
2,609
–
north
amEriCa &
CariBBEan
232,824
5,149
237,973
3,190
241,163
16,822
18,459
7,709
9,852
–
south
amEriCa
272,228
–
272,228
7,369
279,597
28,813
31,517
7,269
11,676
–
1 Earnings before interest and taxes (EBIt) before intercompany management and franchise fees (as reported in Hy-2007).
13
unauditEd
30.6.08
(145,255)
83,460
(61,795)
unauditEd
30.6.08
(145,255)
129,186
450,076
434,007
Eliminations
–
(65,714)
(65,714)
–
(65,714)
–
(1,442)
–
–
–
total
877,574
–
877,574
19,371
896,945
83,805
83,805
29,953
33,197
1,155
Dufry presents as of 2008 the EBIt line before elimination of inter-segmental management and franchise fees
in order to better reflect the economical situation.
F-198
auditEd
31.12.07
(125,077)
29,082
(95,995)
auditEd
31.12.07
(125,077)
16,016
479,482
370,421

9 properTy, plAnT And equipMenT
14
DuFry HAlF yEAr rEPOrt 2008
NOtES tO tHE INtErIM CONDENSED CONSOlIDAtED
FINANCIAl StAtEMENtS
additions and disposals
During the six months ended June 30, 2008, the Group acquired assets with a cost of CHF 13.0 million (December
31, 2007: CHF 59.0 million), not including property and equipment acquired through a business combination
(see note 6).
Assets with a net book value of CHF 1.8 million were disposed of by the Group during the six months ended June
30, 2008 (December 31, 2007: CHF 2.2 million), resulting in a net gain on disposal of CHF 0.03 million (2007: net
loss CHF 0.4 million).
10 finAnciAl invesTMenTs
Financial investments include the 11.2 % stake (pre-dilution) in Advent-Hudson llC, a leading travel retailer
based in the united States, which Dufry acquired on March 28, 2008, for CHF 52.4 million. Hudson is represented
in 69 airports and railway station terminals in the united States and Canada and achieved a turnover of uSD 630
million in 2007 with its 550 newsstands, bookstores, cafes and specialty retail concessions. this investment is
valued at cost.
11 inTeresT-beArinG loAns And borrowinGs
On January 26, 2007 after having received the proceeds of the over-allotment option of Dufry South America’s
IPO, Dufry reduced its syndicated multi-currency facility by CHF 30 million to approximately CHF 620 million. On
July 6, 2007, the syndicated multi-currency facility was increased by CHF 200 million to approximately CHF 820
million. Due to a principal repayment during December 2007 the remaining effective facility amounts to CHF 790
million. the facility remained unchanged during the six month period ended June 30, 2008.
F-199

12 provisions
DuFry HAlF yEAr rEPOrt 2008
NOtES tO tHE INtErIM CONDENSED CONSOlIDAtED
FINANCIAl StAtEMENtS
Management believes that its total provisions are adequate based upon currently available information. However,
given the inherent difficulties in estimating liabilities in the areas described below, it cannot be guaranteed,
that additional or lesser costs will be incurred beyond or below the amounts accrued.
law suits and duties
the provision covers uncertainties related to law suits in respect of taxes and duties in the amount of CHF 2.2
million. the subsidiary in tunisia has a provision for a dispute on sales taxes and the subsidiary in Puerto rico
has an uncertainty regarding income tax.
dispute on contracts
the landlord of our shops at the airport of Houston, uSA is claiming back relief, to compensate the consequences
after the events of September 11, 2001 in the united States.
laBor disputes
the long-term provision of CHF 3.2 million relates to claims in respect to the termination of labor contracts in
Brazil.
13 coMMiTMenTs And conTinGencies
the Group enters into long-term agreements with airport authorities, seaport authorities and other landlords,
to guarantee the use of concessions rights. Most of the concessionaires require a minimum annual guarantee
based on sales, passengers or other indicators of operational activity. In case of early termination Dufry’s subsidiaries
can be required to indemnify the port authorities for lost earnings. the Group or their subsidiaries have
granted these warranties regarding the performance of certain long-term con¬tracts directly or through third
parties. As per June 30, 2008 no request for fulfillment of such contingent liabilities were pending.
the Group is contingently liable for a remaining amount of CHF 1.2 million (2007: CHF 2.7 million) in relation to
the purchase of Emerald Distributors ltd by Duty Free Caribbean (Holdings) ltd. under the terms of the purchase
agreement, the purchase price was dependent on the consolidated results of Duty Free Caribbean Emeralds
(St. lucia) ltd maintaining a certain level of earnings before depreciation, amortization and interest but
after taxes. On attaining the level of earnings in any one year as per the agreement, an amount of CHF 1.2 million
(2007: uSD 1.2 million) is payable to the vendor that year. the remaining payment can become due in any
period up to March 31, 2010.
F-200
15

16
14 TreAsury shAres
DuFry HAlF yEAr rEPOrt 2008
NOtES tO tHE INtErIM CONDENSED CONSOlIDAtED
FINANCIAl StAtEMENtS
the Company distributed 100,000 shares in terms of the first rSu grant to qualifying members on January 3,
2008.
During the first six months ended June 2008, Dufry purchased 42,350 shares for a value of CHF 4.2 million in
order to comply with the obligations of the second rSu grant.
15 purchAse of properTy, plAnT And equipMenT
For the purpose of the interim consolidated cash flow statement, the cash flow used for purchase of property,
plant and equipment are comprised of the following:
in thousands of Chf
Payables for capital expenditure at the beginning of the period
Additions of property, plant and equipment
Payables for capital expenditure at the end of the period
translation differences
Cash flow for purchase of property, plant and equipment
16 relATed pArTies And relATed pArTy TrAnsAcTions
unauditEd
1.1. – 30.6.08
the relationships for the Group are as follows:
Dufry Mexico SA de CV operates shops at Mexico City’s Benito Juarez Airport under agreements with Inmobiliaria
Fumisa, SA de CV. Advent International Corp., the entity managing the funds that controls the Company’s
largest shareholder, also manages other funds that controls Inmobiliaria Fumisa, SA de CV. In addition,
three of the members of the Company’s Board of Directors are also directors of Inmobiliaria Fumisa, SA de CV.
According to the concession agreements, the Company is required to compensate Inmobiliaria Fumisa SA de
CV through monthly rental fee payments. For the first six months of 2008, total rent amounted to CHF 10.5 million
(2007: CHF 11.3 million).
In addition to his employment relationship with the Group, Mr. Dante Marro, Chief Operating Officer for region
Europe and member of the Group Executive Committee, acting through Gestione Spazi Attrezzati Srl (“GSAS”),
was granted rights of usufruct over 10 % of the Company’s shareholding in its wholly owned subsidiary Dufry
Shop Finance limited Srl in 2002. the rights of usufruct granted to GSAS, which will expire at the latest on
December 31, 2020, permit it to enjoy the benefits of share ownership, including the receipt of dividends, even
though the shares remain vested in a subsidiary. upon expiration of the rights of usufruct, provided that the
total profits of the aforementioned company shall not have been declared as dividends, GSAS shall be entitled
to receive 10 %, of all withheld profits accumulated as reserves on the balance sheet of Dufry Shop Finance
limited Srl as at December 31, 2020. During the six month period ended June 30, 2008, and June 30, 2007 no
amounts have been paid.
F-201
4,970
12,962
(2,451)
(68)
15,413
unauditEd
1.1. – 30.6.07
3,890
29,139
(7,253)
(11)
25,765

17 finAnciAl insTruMenTs
DuFry HAlF yEAr rEPOrt 2008
NOtES tO tHE INtErIM CONDENSED CONSOlIDAtED
FINANCIAl StAtEMENtS
Hedge of net investments in foreign operations
At June 30, 2008, Dufry has a bank loan of uSD 248.4 million designated to hedge the net investments in DAISA
Dufry America Investments SA. this company holds the participations in subsidiaries of South America. Additionally,
Dufry granted two long term loans to its subsidiaries in the united States of America for uSD 24.2 million
which also have been designated as net investments in Dufry America, Inc., which holds the participations
in subsidiaries located in the united States of America.
the Group use these hedges to reduce the effects generated by the exposure to foreign exchange risk on this
investment.
During the six month period ended June 30, 2008, a gain in the amount of CHF 26.6 million on the retranslation
of this borrowing was transferred to equity to offset any gains or losses on currency translation of the consolidated
subsidiaries.
18 principAl foreiGn exchAnGe rATes Applied for vAluATion And TrAnslATion
1 uSD
1 Eur
30.06.08 30.06.08
30.06.07
31.12.07
avEragE ratEs
1.0497
1.6056
F-202
Closing ratEs
1.0208
1.6063
17
avEragE ratEs
1.2283
1.6320
Closing ratEs
1.1360
1.6565

(This page has been left blank intentionally.)
F-203

Dufry AG:
Unaudited Consolidated Financial Statements for the First Half Year ended June 30, 2007..... F-204
Interim Consolidated Income Statement.................................................................................................. F-205
Interim Consolidated Balance Sheet ........................................................................................................ F-206
Interim Consolidated Cash Flow Statement ............................................................................................ F-207
Interim Consolidated Statement of Changes in Equity ........................................................................... F-208
Notes to the Interim Consolidated Financial Statements ........................................................................ F-209
F-204

8 UnaUdited interim Condensed
Consolidated FinanCial statements
as oF JUne 30, 2007
interim Consolidated inCome statement
in thousands of CHF
Net sales
Advertising income
tUrnoVer
Cost of sales
Gross ProFit
Selling expenses, net
Personnel expenses
General expenses, net
Depreciation and amortization
Other operational expenses
Other operational income
earnings before interest and taxes ( eBit )
Financial expenses
Financial income
earnings before taxes ( eBt )
Income taxes
net earninGs
attributable to
Equity holders of the parent
Minority interest
earnings per share attributable to equity holders of the parent
Basic in CHF
Diluted in CHF
eBitda (before other operational result)
eBit
Depreciation and amortization
eBitda
Other operational expenses
Other operational income
eBitda (before other operational result)
Dufry Half Year Report 2007 — Unaudited Interim Condensed Consolidated Financial Statements
F-205
note
6
1. 1. – 30. 6. 07
877,574
19,371
896,945
426,651
470,294
182,831
113,590
67,982
34,352
6,670
(18,936)
83,805
(20,362)
6,723
70,166
13,194
56,972
35,545
21,427
2.53
2.53
83,805
34,352
118,157
6,670
(18,936)
105,891
1. 1. – 30. 6. 06
608,612
13,707
622,319
302,183
320,136
121,806
83,327
53,414
20,465
4,915
( 5,254 )
41,463
(12,164)
776
30,075
5,407
24,668
18,345
6,323
1.30
1.30
41,463
20,465
61,928
4,915
(5,254)
61,589

interim Consolidated BalanCe sHeet
assets
in thousands of CHF
Cash and cash equivalents
Trade receivables, net
Income tax receivables
Other accounts receivable
Inventories
Current assets
Property, plant and equipment
Intangible assets
Other non-current assets
Deferred tax assets
non-current assets
total assets
liaBilities and eqUity
in thousands of CHF
Trade payables
Bank debt, short-term
Financial debt, short-term
Income tax payables
Other accounts payable
Provisions, short-term
Current liabilities
Bank debt, long-term
Financial debt, long-term
Other non-current liabilities
Deferred tax liabilities
Post-employment benefits obligation
Provisions, long-term
non-current liabilities
total liabilities
Equity attributable to equity holders of the parent
Minority interest
total equity
total liaBilities and eqUity
Dufry Half Year Report 2007 — Unaudited Interim Condensed Consolidated Financial Statements
F-206
note
8
9
note
10
10
30. 6. 07
78,897
46,139
5,647
87,577
331,556
549,816
112,975
1,116,464
26,400
13,447
1,269,286
1,819,102
30. 6. 07
177,998
13,749
6,376
10,850
166,148
3,688
378,809
539,490
448
7,334
164,150
11,318
4,213
726,953
1,105,762
503,466
209,874
713,340
1,819,102
31. 12. 06
102,390
28,671
3,645
81,979
277,729
494,414
101,952
1,143,070
20,548
15,494
1,281,064
1,775,478
31.12. 06
157,300
21,725
6,821
8,171
153,180
1,975
349,172
585,230
2,063
7,447
165,908
10,512
–
771,160
1,120,332
482,124
173,022
655,146
1,775,478
9

10
interim Consolidated CasH Flow statement
in thousands of CHF
Earnings before taxes
adjustments for
Depreciation and amortization
Other non cash items
Decrease in allowances, deferred taxes and provisions
(Gain) / loss on sales of property, plant and equipment
Net gain on sale of investments
(Gain) / loss on unrealized foreign exchange differences
Interest income
Interest expense
Cash flow before working capital changes
Increase in trade and other accounts receivable
Increase in inventories
Increase in trade and other accounts payable
Cash flow from operations
Income taxes paid
net cash flows from operating activities
Cash flow from investing activities
Acquisition of interests in subsidaries, net of cash
Sales of interests in subsidaries, net of cash
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of equipment
Interests received
net cash flows from / (used in) investing activities
Cash flow from financing activities
Purchase of treasury shares
Dividends paid to group shareholders
Dividends paid to minority shareholders
Increase in minority equity
Increase (decrease) of financial debt
Decrease of loans
Interest paid
net cash flows (used in) / from financing activities
Currency translation differences
(decrease) / increase in cash and cash equivalents
Cash and cash equivalents at the
– beginning of the period
– end of the period
Dufry Half Year Report 2007 — Unaudited Interim Condensed Consolidated Financial Statements
F-207
1. 1. – 30. 6. 07
70,166
34,352
2,755
2,225
29
(17,013)
(5,752)
(1,396)
20,362
105,728
(26,571)
(49,152)
31,592
61,597
(13,173)
48,424
–
64,745
(25,765)
(4,187)
1,185
1,381
37,359
(7,885)
(14,063)
(6,619)
–
(67,611)
( 351)
(20,555)
(117,084)
7,808
(23,493)
102,390
78,897
1. 1. – 30. 6. 06
30,075
20,465
–
5,093
(93)
–
3,147
( 542 )
12,164
70,309
( 11,557 )
( 28,997)
30,368
60,123
( 9,728 )
50,395
(545,486)
–
(25,974)
(8,981)
2,838
501
( 577,102 )
–
–
(5,091)
2,063
559,039
( 463 )
(12,075)
543,473
3,020
19,786
51,602
71,388

interim Consolidated statement oF CHanGes in eqUity
in thousands of CHF
Balance as of 1. 1. 06
Currency translation differences
Total income and expense for the
period recognised directly in equity
Net earnings
Total income and expense for the period
Share-based payment
Acquisition of Delmey SA
Acquisition of other subsidiaries
Acquisition 10 % of Duty Free
Caribbean Group
Increase in share capital of Duty Free
Caribbean Group
Dividend to minority interests
Balance as of 30. 6. 06
Balance as of 1. 1. 07
Currency translation differences
Net gain on hedge of investment
Total income and expense for the
period recognised directly in equity
Net earnings
Total income and expense for the period
Purchase of treasury shares
Share-based payment
Change in participation of minority
interests
Dividend to shareholders
Dividend to minority interests
Balance as of 30. 6. 07
issUed
CaPital
70,313
–
–
–
–
–
–
–
–
–
–
70,313
70,313
–
–
–
–
–
–
–
–
–
–
70,313
sHare
PremiUm
256,514
–
–
–
–
–
–
–
–
–
–
256,514
256,514
–
–
–
–
–
–
–
–
–
–
256,514
attriBUtaBle to eqUity Holders oF tHe Parent
treasUry
sHares
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(7,885)
–
–
–
–
(7,885)
Dufry Half Year Report 2007 — Unaudited Interim Condensed Consolidated Financial Statements
F-208
translation
reserVes
2,852
(1,769)
(1,769)
–
(1,769)
–
–
–
–
–
–
1,083
(11,540)
7,860
(2,870)
4,990
–
4,990
–
–
–
–
–
(6,550)
retained
earninGs total
56,673
–
–
18,345
18,345
1,449
–
–
–
–
–
76,467
166,837
–
–
–
35,545
35,545
–
2,755
–
(14,063)
–
191,074
386,352
(1,769)
(1,769)
18,345
16,576
1,449
–
–
–
404,377
482,124
7,860
(2,870)
4,990
35,545
40,535
(7,885)
2,755
–
(14,063)
–
503,466
minority
interests
59,684
(4,866)
(4,866)
6,323
1,457
–
55,582
74
(6,215)
9,989
(5,091)
115,480
173,022
1,802
–
1,802
21,427
23,229
–
–
20,242
–
(6,619)
209,874
total
eqUity
446,036
(6,635)
(6,635)
24,668
18,033
1,449
55,582
74
(6,215)
9,989
(5,091)
519,857
655,146
9,662
(2,870)
6,792
56,972
63,764
(7,885)
2,755
20,242
(14,063)
(6,619)
713,340
11

12
notes to tHe interim Condensed
Consolidated FinanCial statements
1 CorPorate inFormation
The interim condensed consolidated financial statements of Dufry Ltd and its subsidiaries for the six months ended June
30, 2007 were authorized for issue in accordance with a resolution of the Board of Directors on August 30, 2007.
Dufry Ltd (‘Dufry’ or ‘the Company’) is a limited company domiciled in Basel, Switzerland, whose shares are listed on
the Swiss Stock Exchange (SWX).The Company is one of the world’s leading travel retail companies with more than 450
shops worldwide.
2 Basis oF PreParation and aCCoUntinG PoliCies
The interim condensed consolidated financial statements are prepared in accordance with the International Accounting
Standard 34 (IAS 34 “Interim Financial Reporting”). These interim financial statements should be read in conjunction
with the consolidated financial statements for the year ended December 31, 2006 as they provide an update of previously
reported information.
The preparation of the interim financial statements requires management to make estimates and assumptions that affect
the reported amounts of sales, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the
interim financial statements. If in the future such estimates and assumptions, which are based on management’s best
judgment at the date of the interim financial statements, deviate from the actual circumstances, the original estimates
and assumptions will be modified as appropriate in the year in which the circumstances change.
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent
with those followed in the preparation of the Group’s annual financial statements for the year ended December
31, 2006. The adoption of amendments to certain IFRS mandatory for annual periods beginning on or after January 1,
2007 (i.e. IFRIC 9 Reassessment of embedded derivatives, IFRIC 10 Interim Financial Reporting and Impairment, IFRIC
7 Applying the Restatement Approach under IAS 29 (Financial Reporting in Hyperinflationary Economies), IFRS 7 Financial
Instruments: Disclosures and IFRIC 8 Scope of IFRS 2 (Share-based Payment)) did not affect the Group’s results of
operations or financial positions. Where necessary, the comparatives have been reclassified or extended from previously
reported results to take into account any changes in presentation made in the annual report or these interim financial
statements.
3 seasonality oF oPerations
The Group operates in different markets with seasonal variations in sales and operational results. Whereas the high
season in Europe and Africa is from July to October, in North- and South America as well as in the Caribbean, it is from
December to April. In the Asian region, the seasonality is well balanced throughout the year. All regions have a strong
month in December.
4 new ComPanies
During the first half of 2007, Dufry started new companies in China (Hong Kong) and in Egypt (Sharm-el-Sheikh).
5 diVidends Paid and ProPosed
The ordinary general assembly approved a dividend of CHF 1.00 per share on May 15, 2007 and the company paid such
dividend, totaling CHF 14,062,500 during the six months period ended June 30, 2007. No dividends were paid or proposed
during the six months period ended June 30, 2006.
Dufry Half Year Report 2007 — Notes to the Interim Condensed Consolidated Financial Statements
F-209

6 inCome tax
The major components of income tax expense in the interim consolidated income statement are:
in thousands of CHF
For the six months period ended June 30
Current income tax
Deferred income tax
Total income tax
The difference in deferred taxes results mainly from the acquisition of Dufry do Brasil in the first half 2006.
7 FinanCinG
On January 26, 2007, after having received the proceeds of the over-allotment option of Dufry South America‘s IPO,
Dufry reduced its syndicated multi-currency facility by CHF 30 million to approx. CHF 620 million. [On July 6, 2007, Dufry
increased its syndicated multi-currency facility by CHF 200 million to approximately CHF 820 million.]
Currency risk exposure
As of June 30, 2007, Dufry effectively hedged foreign exchange gains amounting to CHF 26.3 million and presented it as
a translation adjustment in equity.
8 trade reCeiVaBles
Since the beginning of 2007 the company discloses credit card receivables (CHF 34.1 million) as trade receivables (previously
disclosed in other receivables). The comparative figures (CHF 21.5 million) were adjusted accordingly.
9 ProPerty, Plant and eqUiPment
During the six months period ended June 30, 2007 the Group acquired equipment, furniture, leasehold improvements,
vehicles, and computers with a historical cost of CHF 25.8 million.
10 ProVisions
Management believes that its total provisions are adequate based upon currently available information. However, given
the inherent difficulties in estimating liabilities in the below described areas, it cannot be guaranteed, that additional or
lesser costs will be incurred beyond or below the amounts accrued.
law suits and duties
These provisions were increased by CHF 2.5 million to cover uncertainties related to disputes in respect of the interpretation
of income tax exemptions in the North American Region.
labor contingencies
The long term provision of CHF 4.2 million relates to law suits in respect to the termination of labor contracts in Brazil.
Based on management’s appraisal as of December 2006 this liability was presented at such time as other accounts
payable - Personnel.
Dufry Half Year Report 2007 — Notes to the Interim Condensed Consolidated Financial Statements
F-210
2007
13,931
(737)
13,194
2006
15,290
(9.883)
5,407
13

14
11 sHare-Based Payment
restricted stock Unit Plan (rsU)
Dufry implemented a restricted stock unit (RSU) plan for certain members of the Group’s management. The Company’s
RSU plan makes provision for two consecutive and distinctive annual grants of RSUs.
On January 1, 2006, date of the first grant of RSU pursuant to the plan, the Company granted to the participants the right
to receive on January 1, 2008, free of charge, 100,000 RSUs on aggregate. Such rights vested on January 1, 2007, as the
average closing price of the 10 consecutive trading days of the Company’s shares on the Swiss Stock Exchange prior to
December 31, 2006 was CHF 102 and therefore met the vesting condition of being equal or higher than CHF 80.80.
On January 1, 2007, date of the second grant of RSU pursuant to the plan, the Company granted to the participants the
right to receive on January 1, 2009, free of charge, 105,000 RSUs on aggregate. Such rights shall vest on January 1, 2008,
if the average closing price of the 10 consecutive trading days of the Company’s shares on the Swiss Stock Exchange
prior to December 31, 2007 is equal or higher than CHF 103.02. If the average price is lower than CHF 103.02, no rights
will vest and no shares will be allocated.
The fair value of the options is estimated at the grant date using a binomial pricing model, taking into account the
terms and conditions (risk free interest rate of 2.72% and a volatility of 40%) upon which the instruments were granted.
The contractual life of each option granted is two years. The expected volatility reflects assumptions, that the historical
volatility is indicative of future trends, which may also not necessarely be the actual outcome. There are no cash settlement
alternatives. Up to June 30, 2007 accrued costs of CHF 5.2 million have been recorded in equity.
treasury shares
During the first six months of 2007 Dufry purchased 58,000 treasury shares at a total price of CHF 7.9 million.
12 ContinGent liaBilities
The Group enters into long-term agreements with port authorities to guarantee the use of concessions rights. Most of
the concessionaires require a minimum annual guarantee based on sales, passengers or other indicators of operational
level. In case of early termination Dufry’s subsidiaries can be required to indemnify the port authorities for lost earnings.
The Group or their subsidiaries have granted these warranties regarding the performance of certain long-term
contracts directly or through third parties. As per June 30, 2007 no request for fulfillment of such contingent liabilities
are pending.
The Group is contingently liable for a remaining amount of CHF 2.9 million (2006: CHF 2.9 million) in relation to the purchase
of Emerald Distributors Ltd by Duty Free Caribbean (Holdings) Ltd. Under the terms of the purchase agreement,
the purchase price was dependent on the consolidated results of Duty Free Caribbean Emeralds (St. Lucia) Ltd maintaining
a certain level of earnings before depreciation, amortization and interest but after taxes. On attaining the level of
earnings in any one year as per the agreement, an amount of CHF 1.5 million (USD 1.2 million) is payable to the vendor
that year. The remaining two payments can become due in any year up to March 31, 2010.
The subsidiary in Houston has a dispute of CHF 1.5 million regarding the payment of a minimal annual guarantee of past
years of the current concession.
The court in Naples has still not pronounced a judgement regarding the dispute held between the local customs and
Dufry Italia SpA in respect of vendor control limits. Dufry deemed that this claim will not proceed, after two previous
claims in this respect were dismissed by the court.
Dufry Half Year Report 2007 — Notes to the Interim Condensed Consolidated Financial Statements
F-211

13 related Parties and related Party transaCtions
Dufry Mexico SA de CV operates shops at Mexico City’s Benito Juarez Airport under agreements with Inmobiliaria Fumisa,
SA de CV. Advent International Corporation, the entity managing the funds that control the Company’s major
shareholder, also manages other funds that have a 50% shareholding in Inmobiliaria Fumisa, SA de CV with the remaining
50% owned by a co-investor. In addition, three of the members of the Company’s Board of Directors are also directors
of Inmobiliaria Fumisa, SA de CV. The Mexico City concessions are due to remain in force until varying dates between
2010 and 2013. Under the agreements, the Company is required to compensate Inmobiliaria Fumisa, SA de CV through
a monthly fixed rental fee. During the first six months ended in June 2007, total concession fees paid amounted to CHF
11.3 million (June ‘06 = CHF 10.1 million).
In addition to his employment relationship with the Group, Mr Dante Marro, the Chief Operating Officer for region Europe
and member of the Group Executive Committee, acting through GSA Srl Gestione Spazi Attrezzati („GSAS“), was granted
rights of usufruct over 10% of the Company‘s shareholding in its wholly owned subsidiary Dufry Shop Finance Limited Srl
in 2002. The rights of usufruct granted to GSAS, which will expire at the latest on December 31, 2020, permit it to enjoy
the benefits of share ownership, including the receipt of dividends, even though the shares remain vested in a subsidiary.
Upon expiration of the rights of usufruct, provided that the total profits of the aforementioned company shall not have
been declared as dividends, GSAS shall be entitled to receive 10%, of all withheld profits accumulated as reserves on the
balance sheet of Dufry Shop Finance Limited Srl as at December 31, 2020. During the six month period ended June 30,
2007 and six months ended June 30, 2006, no amounts have been paid.
14 oVer-allotment oPtion (From tHe iPo oF dUFry soUtH ameriCa ltd)
On January 21, 2007 the over-allotment option of 4,129,567 shares of Dufry South America Ltd, Bermuda granted to the
banks participating in the Initial Public Offering was exercised for a total consideration of CHF 64.5 million (USD 12.5761
per share). The Group holds thereafter a participation of 51% in Dufry South America Ltd.
15 PrinCiPal ForeiGn exCHanGe rates aPPlied For ValUation and translation
in CHF
1 USD
1 EUR
aVeraGe rate
1.2333
1.6548
Dufry Half Year Report 2007 — Notes to the Interim Condensed Consolidated Financial Statements
30. 6. 07 31. 12. 06
ClosinG rate
1.2300
1.6550
F-212
aVeraGe rate
1.2536
1.5732
ClosinG rate
1.2200
1.6100
15

16
16 seGment reVenUe and resUlts
The Group’s risks and returns are predominantly affected by the fact that it operates in different countries. Therefore, the
Group reports segmental information in its financial statements in the same way as it does internally to senior management,
i.e. using geographical areas as its primary segments. There is only one business segment, travel retail.
The geographical segments reported are broken down as follows: Europe (incl. HQ), Africa, Eurasia, North America &
Caribbean and South America.
in thousands of CHF
Reporting periods 1.1. to 30.6.
Net sales – third parties
Net sales – intercompanies
net sales
advertising income
turnover
earnings before interest and taxes (eBit)
Financial income / (expenses)
Income taxes
net earninGs
Equity holders of the parent
Minority interest
Capital expenditure
Depreciation and amortization
Non-cash result other than depreciation
eUroPe (inCl. Hq) aFriCa eUrasia
2007
191,471
60,565
252,035
8,092
260,127
16,901
7,018
6,564
2,932
2006
172,966
48,318
221,284
7,509
228,793
7,264
11,698
4,047
2,912
2007
76,953
–
76,953
–
76,953
9,116
2,037
3,651
451
2006
63,013
–
63,013
9
63,022
2007
104,098
–
104,098
720
104,818
Due to the change in the composition of the segments, prior years’ figures have been restated to make them comparable
with 2007 figures.
Dufry Half Year Report 2007 — Notes to the Interim Condensed Consolidated Financial Statements
F-213
6,258
3,440
3,327
902
9,254
5,920
2,609
512
2006
86,334
–
86,334
637
86,971
8,117
7,760
2,061
511

nortH ameriCa
& CariBBean
2007
232,824
5,149
237,973
3,190
241,163
18,459
7,709
9,852
715
2006
157,939
–
157,939
2,249
160,188
9,722
10,805
5,073
819
soUtH ameriCa
2007
272,229
–
272,229
7,369
279,598
31,517
7,269
11,676
(51)
2006
128,360
–
128,360
3,303
131,663
11,578
452
5,957
270
2007
–
(65,714)
(65,714)
–
(65,714)
(1,442)
Dufry Half Year Report 2007 — Notes to the Interim Condensed Consolidated Financial Statements
eliminations total
–
–
87
2006
–
(48,318)
(48,318)
–
(48,318)
F-214
(1,476)
–
–
–
2007
877,574
–
877,574
19,371
896,945
83,805
(13,639)
(13,194)
56,972
35,545
21,427
29,953
34,352
4,646
2006
608,612
–
608,612
13,707
622,319
41,463
(11,388)
(5,407)
24,668
18,345
6,323
34,155
20,465
5,414
17

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F-215

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F-216

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F-217

Airport Management Services, LL.C.:
Audited Consolidated Financial Statements for the Fifty-Two Weeks Ended December 30,
2007 and December 31, 2006 (restated)............................................................................................ F-218
Independent Auditors’ Report .................................................................................................................. F-218
Combined and Consolidated Balance Sheets........................................................................................... F-219
Combined and Consolidated Statements of Operations.......................................................................... F-221
Combined and Consolidated Statements of Equity ................................................................................. F-223
Combined and Consolidated Statements of Comprehensive Income .................................................... F-225
Combined and Consolidated Statements of Cash Flows......................................................................... F-226
Notes to the Consolidated Financial Statements ..................................................................................... F-228
Dufry acquired through the investment vehicle Advent-Hudson, LLC, 11.2 percent of the share capital of
Hudson Group Holdings, Inc. (“Hudson”) alongside with Advent International Corporation, which acquired
68.9 percent of Advent-Hudson, LLC. The legal entity “Hudson Group Holdings, Inc.” was incorporated only in
view of this acquisition as part of the transaction structure. Hudson’s consolidated financial statements comprise
all assets and liabilities of Hudson’s legal entities, which was formerly accounted for under the name “Airport
Management Services, LL.C.”
F-218

F-219

F-220

F-221

F-222

F-223

F-224

F-225

F-226

F-227

F-228

F-229

F-230

F-231

F-232

F-233

F-234

F-235

F-236

F-237

F-238

F-239

F-240

F-241

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F-242

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F-243

Hudson Group Holdings, Inc.:
Unaudited Combined and Consolidated Financial Statements for the Twenty-Six Weeks
ended June 29, 2008............................................................................................................................. F-244
Unaudited Combined and Consolidated Balance Sheet.......................................................................... F-245
Unaudited Combined and Consolidated Statement of Operations ......................................................... F-247
Unaudited Combined and Consolidated Statement of Cash Flows........................................................ F-248
Unaudited Combined and Consolidated Statement of Equity ................................................................ F-250
Unaudited Combined and Consolidated Statement of Comprehensive Income.................................... F-251
F-244

CURRENT LIABILITIES
HUDSON GROUP HOLDINGS, INC.
UNAUDITED COMBINED AND CONSOLIDATED BALANCE SHEET
For the Twenty-Six (26) Weeks Ended June 29, 2008
LIABILITIES AND EQUITY
Accounts payable $ 30,327,039
Accrued expenses and other current liabilities 35,764,199
Deferred income (*) 8,971,479
Current maturities of long-term debt 2,350,000
Total Current Liabilities
OTHER LIABILITIES
F-245
77,412,717
Long-term debt, less current maturities
1 st lien debt 232,650,000
2 nd lien debt 125,000,000
Seller note (*) 30,000,000
Other liabilities 1,583,719
Total Other Liabilities 389,233,719
TOTAL LIABILITIES 466,646,436
MINORITY INTERESTS 17,603,216
EQUITY
Common stock – Par value $0.001, 1 billion shares authorized,
900 million shares issued and outstanding
900,000
Additional paid-in capital 445,637,606
Accumulated other comprehensive income 15,114
Retained earnings 893,079
TOTAL EQUITY 447,445,799
TOTAL LIABILITIES AND EQUITY $ 931,695,451

CURRENT ASSETS
HUDSON GROUP HOLDINGS, INC.
UNAUDITED COMBINED AND CONSOLIDATED BALANCE SHEET
Continued
For the Twenty-Six (26) Weeks Ended June 29, 2008
ASSETS
Cash and cash equivalents $ 37,030,657
Accounts receivable 4,822,084
Inventory (*) 51,099,346
Notes receivable, current portion 3,105,767
Retail display/advertising receivables 6,759,700
Prepaid expenses and other current assets 3,810,424
Total Current Assets 106,627,978
PROPERTY AND EQUIPMENT, Net (*) 112,049,608
OTHER ASSETS
Goodwill (*) 675,634,487
Intangible assets, net (*) 5,970,125
Notes receivable, net of current portion 12,966,994
Other assets (*) 18,446,259
Total Other Assets 713,017,865
TOTAL ASSETS $ 931,695,451
(*) The Company is in the process of fair valuing its assets and liabilities in relation to the purchase
accounting in accordance with US GAAP. Adjustments may result based on the fair valuation.
F-246

HUDSON GROUP HOLDINGS, INC.
UNAUDITED COMBINED AND CONSOLIDATED STATEMENT OF OPERATIONS
REVENUE
For the Twenty-Six (26) Weeks Ended June 29, 2008
Retail sales $ 317,885,687
Other operating revenue 1,784,122
TOTAL REVENUE 319,669,809
COST OF SALES 134,692,782
GROSS PROFIT 184,977,027
OPERATING EXPENSES
Payroll and payroll related expenses 68,220,996
Selling, general and administrative expenses 83,788,726
Depreciation and amortization 14,659,592
TOTAL OPERATING EXPENSES 166,669,314
OPERATING INCOME 18,307,713
OTHER INCOME (EXPENSES)
Interest expense, net of interest income (8,516,732)
Amortization of deferred financing costs (784,208)
Other expenses (424,181)
TOTAL OTHER EXPENSES (9,725,121)
INCOME BEFORE MINORITY INTEREST AND INCOME
TAXES
F-247
8,582,592
MINORITY INTEREST 3,585,017
INCOME BEFORE INCOME TAXES 4,997,575
INCOME TAXES 252,901
NET INCOME
$ 4,744,674

HUDSON GROUP HOLDINGS, INC.
UNAUDITED COMBINED AND CONSOLIDATED STATEMENT OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES
For the Twenty-Six (26) Weeks Ended June 29, 2008
Net income $ 4,744,674
Adjustments to reconcile net income to net cash provided by operat-
ing activities:
Depreciation and amortization charges 14,659,592
Amortization of deferred financing costs 784,207
Non cash stock compensation expense 844,722
Bad debt expense 17,593
Minority interest 3,585,017
Loss on sale of fixed asset 165,707
Changes in operating assets and liabilities:
Accounts receivable (2,361,402)
Inventory 2,678,149
Prepaid expenses and other current assets 536,002
Retail display/advertising receivables 1,839,085
Other assets 193,393
Accounts payable (9,112,734)
Accrued bonuses (26,079,276)
Accrued expenses and other current liabilities 12,484,904
Deferred income 5,899,215
Working capital change due to FX translation (168,260)
Other liabilities 467,870
TOTAL ADJUSTMENTS 6,433,784
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 11,178,458
F-248

HUDSON GROUP HOLDINGS, INC.
UNAUDITED COMBINED AND CONSOLIDATED STATEMENT OF CASH FLOWS
Continued
CASH FLOWS FROM INVESTING ACTIVITIES
For the Twenty-Six (26) Weeks Ended June 29, 2008
Acquisition of a business (681,866,867)
Purchases of property and equipment (18,324,103)
Notes receivable paid 1,563,415
Notes receivable issued (3,545,076)
NET CASH USED IN INVESTING ACTIVITIES (702,172,631)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds to finance acquisition 360,000,000
Proceeds from long-term debt – predecessor 26,341,000
Repayment of long-term debt (34,934,211)
Financing cost (18,208,970)
Issuance of common stocks 357,000,000
Contributions from minority members 3,740,591
Distributions to minority members (6,646,335)
NET CASH PROVIDED BY FINANCING ACTIVITIES 687,292,075
NET DECREASE IN CASH AND CASH EQUIVALENTS (3,702,098)
CASH AND CASH EQUIVALENTS - Beginning 40,732,755
CASH AND CASH EQUIVALENTS - Ending $ 37,030,657
F-249

HUDSON GROUP HOLDINGS, INC.
UNAUDITED COMBINED AND CONSOLIDATED STATEMENT OF EQUITY
Common
Stock
For the Twenty-Six (26) Weeks Ended June 29, 2008
Additional
Paid-in Capital
F-250
Accumulated
Other Comprehensive
Income
/ (Loss)
Partners'
Capital
Retained
Capital Total Equity
Balance December 30, 2007
(Predecessor; Airport Mgmt.
Services LL.C.) 0 $ 14,118,459 $ 901,697 $ 4,105,702 $ 73,733,157 $ 92,859,015
Change in accumulated other
comprehensive income 0 0 (150,335) 0 0 (150,335)
Net income – December 31,
2007 to March 28, 2008 0 0 0 0 3,910,861 3,910,861
Balance March 28, 2008
(Predecessor; Airport Mgmt.
Services LL.C.) 0 14,118,459 751,362 4,105,702 77,644,018 96,619,541
Elimination of historical equity 0 (14,118,459) (751,362) (4,105,702) (77,644,018) (96,619,541)
Acquisition 900,000 444,792,884 0 0 0 445,692,884
Stock base compensation 0 844,722 0 0 0 844,722
Change in accumulated other
comprehensive income 0 0 15,114 0 0 15,114
Net Income March 29, 2008 to
June 29, 2008 0 0 0 0 893,079 893,079
Balance June 29, 2008
(Successor; Hudson Group
Holdings, Inc.) 900,000 $ 445,637,606 $ 15,114 $ 0 $ 893,079 $ 447,445,799

HUDSON GROUP HOLDINGS, INC.
UNAUDITED COMBINED AND CONSOLIDATED STATEMENT OF
F-251
COMPREHENSIVE INCOME
For the Twenty-Six (26) Weeks Ended June 29, 2008
NET INCOME $ 4,744,674
OTHER COMPREHENSIVE INCOME
Unrealized gain on foreign currency translation, net 15,114
TOTAL COMPREHENSIVE INCOME $ 4,759,788

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F-252

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F-253

Airport Management Services, LL.C.:
Unaudited Combined and Consolidated Financial Statements for the Twenty-Six Weeks
ended July 1, 2007................................................................................................................................ F-254
Unaudited Combined and Consolidated Balance Sheet.......................................................................... F-255
Unaudited Combined and Consolidated Statement of Operations ......................................................... F-257
Unaudited Combined and Consolidated Statement of Cash Flows........................................................ F-258
Unaudited Combined and Consolidated Statement of Equity ................................................................ F-260
Unaudited Combined and Consolidated Statement of Comprehensive Income.................................... F-261
Dufry acquired through the investment vehicle Advent-Hudson, LLC, 11.2 percent of the share capital of
Hudson Group Holdings, Inc. (“Hudson”) alongside with Advent International Corporation, which acquired
68.9 percent of Advent-Hudson, LLC. The legal entity “Hudson Group Holdings, Inc.” was incorporated only in
view of this acquisition as part of the transaction structure. Hudson’s consolidated financial statements comprise
all assets and liabilities of Hudson’s legal entities, which was formerly accounted for under the name “Airport
Management Services, LL.C.”
F-254

CURRENT LIABILITIES
AIRPORT MANAGEMENT SERVICES 1
UNAUDITED COMBINED AND CONSOLIDATED BALANCE SHEET
For the Twenty-Six (26) Weeks Ended July 1, 2007
LIABILITIES AND EQUITY
Accounts payable $ 27,712,637
Accrued expenses and other current liabilities 30,289,252
Current maturities of long-term debt 4,210,000
Total Current Liabilities 62,211,889
OTHER LIABILITIES
Due to Hudson Media, Inc. 651,669
Due to related parties 686,028
Long-term debt, less current maturities 51,649,473
Other liabilities 1,042,280
Total Other Liabilities 54,029,450
TOTAL LIABILITIES 116,241,339
EQUITY
Common stock, no par value, 200 shares authorized, 112,5064
shares issued and outstanding
Additional Paid in Capital 14,118,459
Accumulated other comprehensive income 619,043
Retained earnings 85,533,710
Partners' capital 6,854,295
107,125,507
Minority interest 15,109,201
TOTAL EQUITY 122,234,708
TOTAL LIABILITIES AND EQUITY $ 238,476,047
1 The legal entity "Hudson Group Holdings, Inc." was incorporated as part of the transaction structure only shortly
before the acquisition of the Hudson business by Dufry AG. The acquired business was formerly accounted for
under the name "Airport Management Services LL.C.".
F-255
--

CURRENT ASSETS
AIRPORT MANAGEMENT SERVICES
UNAUDITED COMBINED AND CONSOLIDATED BALANCE SHEET
Continued
For the Twenty-iSx (26) Weeks Ended July 1, 2007
ASSETS
Cash and cash equivalents $ 32,057,896
Investments --
Accounts receivable 3,590,246
Inventory 50,038,418
Notes receivable, current portion 3,089,704
Retail display/advertising allowance receivables 20,505,795
Miscellaneous receivables --
Prepaid expenses and other current assets 5,044,371
Total Current Assets 114,326,430
PROPERTY AND EQUIPMENT, Net 99,944,901
OTHER ASSETS
Due from related parties 1,378,922
Due from stockholders --
Notes receivable, net of current portion 10,543,509
Intangible assets, net 10,771,812
Other assets 1,510,472
Total Other Assets 24,204,716
TOTAL ASSETS $ 238,476,047
F-256

AIRPORT MANAGEMENT SERVICES
UNAUDITED COMBINED AND CONSOLIDATED STATEMENT OF OPERATIONS
REVENUE
For the Twenty-Six (26) Weeks Ended July 1, 2007
Retail sales $ 304,624,408
Other operating revenue 803,575
TOTAL REVENUE 305,427,983
COST OF SALES 132,864,003
GROSS PROFIT 172,563,980
OPERATING EXPENSES
Payroll and payroll related expenses 58,395,283
Selling, general and administrative expenses 76,640,111
Depreciation and amortization 13,646,698
TOTAL OPERATING EXPENSES 148,682,093
OPERATING INCOME 23,881,887
OTHER INCOME (EXPENSES)
Interest expense, net of interest income $697,782 (1,380,817)
Gain from early extinguishment of debt 0
Other expenses (1,535,679)
TOTAL OTHER INCOME (2,916,496)
INCOME BEFORE MINORITY INTEREST AND INCOME
TAXES
F-257
20,965,391
MINORITY INTEREST 3,127,735
INCOME BEFORE INCOME TAXES 17,837,656
INCOME TAXES 637,800
NET INCOME $ 17,199,856

AIRPORT MANAGEMENT SERVICES
UNAUDITED COMBINED AND CONSOLIDATED STATEMENT OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES
For the Twenty-Six (26) Weeks Ended July 1, 2007
Net income $ 17,199,856
Adjustments to reconcile net income to net cash provided by operat-
ing activities:
Depreciation 10,558,500
Amortization 3,088,198
Bad debt expense 19,634
Minority interest 3,127,735
Changes in operating assets and liabilities:
Accounts receivable (1,468,597)
Inventory (1,816,072)
Prepaid expenses and other current assets 1,917,509
Retail display/advertising allowance receivables 454,113
Other assets 14
Accounts payable (11,447,899)
Accrued expenses and other current liabilities 9,964,288
Other liabilities (1,178,279)
Due to related parties (427,698)
Due from related parties (383,436)
TOTAL ADJUSTMENTS 12,408,009
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 29,607,865
F-258

AIRPORT MANAGEMENT SERVICES
UNAUDITED COMBINED AND CONSOLIDATED STATEMENT OF CASH FLOWS
Continued
CASH FLOWS FROM INVESTING ACTIVITIES
For the Twenty-Six (26) Weeks Ended July 1, 2007
Purchases of property and equipment ($ 16,418,515)
Proceeds from sale of property and equipment 961,361
Deferred financing cost
Notes receivable, net (813,968)
NET CASH USED IN INVESTING ACTIVITIES (16,271,123)
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayments of long term debt (5,285,472)
Due to Media (5,079,811)
Contributions from minority members 1,870,781
Distributions to shareholders (200,000)
Distributions to partners (55,524)
Distributions to stockholders $ 0
Distributions to minority members (4,534,766)
NET CASH USED IN FINANCING ACTIVITIES (13,284,791)
NET INCREASE IN CASH AND CASH EQUIVALENTS 51,951
CASH AND CASH EQUIVALENTS - Beginning 32,005,945
CASH AND CASH EQUIVALENTS - Ending $ 32,057,896
F-259

AIRPORT MANAGEMENT SERVICES
UNAUDITED COMBINED AND CONSOLIDATED STATEMENT OF EQUITY
Common
Stock
Additional
Paid-in
Capital
For the Twenty-Six (26) Weeks Ended July 1, 2007
Accumulated
Other Comprehensive
Income
/ (Loss)
F-260
Retained
Earnings
Partners'
Capital
Minority
Interest Total
Balance January 1, 2007 0 $ 14,118,459 $ 411,820 $ 69,348,721 $ 6.094,952 $ 14,645,451 $ 104,619,403
Net income 0 0 0 16,384,989 814,867 0 17,199,856
Minority interest – net
income 0 0 0 0 0 3,127,735 3,127,735
Capital contributions 0 0 0 0 0 1,870,781 1,870,781
Distributions 0 0 0 (200,000) (55,524) (4,534,766) (4,790,290)
Change in accumulated
other comprehensive
income 0 0 207,223 0 0 0 207,223
Balance July 1, 2007 0 $ 14,118,459 $ 619,043 $ 85,533,710 $ 6,854,295 $ 15,109,201 $ 122,234,708

AIRPORT MANAGEMENT SERVICES
UNAUDITED COMBINED AND CONSOLIDATED STATEMENT OF
F-261
COMPREHENSIVE INCOME
For the Twenty-Six (26) Weeks Ended July 1, 2007
NET INCOME $ 17,199,856
OTHER COMPREHENSIVE INCOME
Unrealized gain on foreign currency translation, net 207,223
TOTAL COMPREHENSIVE INCOME $ 17,407,079

THE COMPANY
Dufry AG
Hardstrasse 95
CH-4020 Basel
Switzerland
AUDITORS TO THE COMPANY
Ernst & Young AG
Aeschengraben 9, P.O. Box
CH-4002 Basel
Switzerland
LEGAL ADVISOR TO THE COMPANY
Homburger AG
Weinbergstrasse 56/58
CH-8006 Zurich
Switzerland