A GLOBAL AMBITION ANNuAL REPORT 2006 - Dufry

ChaIRMaN oF ThE boaRD oF DIRECToRS
bEyoND DuFRy, a SoCIaL RESPoNSIbILITy
Dufry Annual Report 2006 — Chairman of the Board of Directors
Dear Shareholders,
2006 was another year of strong growth and outstanding financial performance
at Dufry. Since the IPO in December 2005, Dufry’s share price rose by 28% from
CHF 80.00 to CHF 102.00 on December 31, 2006, resulting in a market capitalization
of CHF 1,434 million. Dufry has demonstrated its capability to develop
business through organic growth, new projects and acquisitions. In 2006, Dufry
successfully deployed all of these approaches: Apart from a healthy organic
growth, we started new operations in all regions and also acquired new companies
in Brazil and Puerto Rico. In addition, Dufry further strengthened its
concession portfolio, providing a basis to increase sales growth and profitability
in the years to come.
In terms of projects, the highlights in 2006 were the acquisition of Brasif and its
logistics platform Eurotrade in March 2006 for a total consideration of USD 503
million, of which 80% was financed by Dufry, as well as the acquisition in Puerto
Rico late December 2006. Furthermore, in order to capture the full potential in
South America, Dufry decided in autumn 2006 to do an Initial Public Offering
(IPO) of its South American operations in the Brazilian and Luxembourg stock
markets. Dufry South America Ltd, which comprises the Brazilian as well as
the Bolivian operations and the Caribbean cruise line retailing business, had its
first day of trading on December 20, 2006. As of December 31, 2006, Dufry South
America had a market capitalization of USD 855 million.
With these strategic moves, Dufry has secured strong positions in South America
and the Caribbean, some of its strategic core markets. The IPO of Dufry
South America will allow us to develop the South American business in an optimal
way by combining the global reach of Dufry with the support of the investor
community dedicated to Latin America. Additionally, the proceeds obtained
from the IPO allowed us to continue the acquisition path, the Puerto Rico transaction
being the first example.
In 2006, there were certain changes to the Board of Directors. At the Extraordinary
General Meeting on November 23, 2006, the number of Board members
was reduced from nine to seven and Mr Jaime Carvajal Urquijo was elected as a
new member of the Board of Directors. Today, Ernest George Bachrach, Xavier
Bouton, Jaime Carvajal Urquijo, Mario Fontana, Luis Andrés Holzer, Joaquin
Moya-Angeler and myself form a Board of Directors that for good Corporate
Governance reasons consists of non-executive members only. All seven members
combine a wide range of professional backgrounds and have extensive
experience in their businesses.