Pages 16 to 37 of the Annual Report 2005

16
1. Group structure and shareholders
Corporate governance
Dufry fully commits itself to good
corporate governance.
Group structure
For an overview of the operational group structure, please refer to page 7 of this
annual report.
Dufry Annual Report 2005 — Corporate Governance
Listed companies
Company
Listing
Market capitalization
Percentage of shares
held by Dufry
Security number
Dufry Ltd, Hardstrasse 95, 4052 Basel, Switzerland
(hereinafter „Dufry“ or the „Company“)
SWX Swiss Exchange (since December 6, 2005)
CHF 1,167.2 million as of December 31, 2005
No shares held as of December 31, 2005
ISIN-No. CH 0023405456, Swiss Security-No. 2340545
SWX Swiss Exchange Ticker Symbol DUFN
Non-listed companies
For a table of the operational non-listed consolidated entities please refer to
page 87 in section Financial Reporting of this Annual Report 1. Significant shareholders
The following significant shareholders hold more than 5 % of the share capital
as of December 31, 2005 :
Travel Retail Investments SCA, 76 Grand Rue, L-1660 Luxembourg Areas SA, Via Augusta 21 – 23, Barcelona, Spain 53.02 %
18.02 %
As part of the restructuring of their interests in Dufry Ltd that the following
investors held prior to the Initial Public Offering at SWX Swiss Exchange, funds
managed by Advent International Corporation, 75 State Street, Boston, Massachusetts / USA, Petrus PTE Ltd, 8 Cross Street, #11-00 PWC Building, Singapore
048424 and Witherspoon Investments LLC, 1209 Orange Street, Wilmington,
Delaware 19801 / USA, entered into a shareholders agreement to govern their
relationship as shareholders of Travel Retail Investments SCA. This agreement
provides that the funds managed by Advent International Corporation shall
have a right of first refusal should either Petrus PTE Ltd or Witherspoon Investments LLC wish to transfer their holdings in Travel Retail Investments SCA.
In addition, if a third party offers to acquire all the interests in Travel Retail
Investments SCA and the funds managed by Advent International Corporation
in Travel Retail Investments SCA decide to transfer their entire interest in Travel
Retail Investments SCA to that third party, then the funds managed by Advent
International Corporation shall have the right to compel the other shareholders
to transfer their entire holding in Travel Retail Investments SCA to that third
party by exercising their drag-along rights.
1
including the company names, locations, percentage of shares held, share capital
17
Advent International Corporation, Petrus PTE Ltd and Witherspoon Investments
LLC are a group of shareholders acting in concert within the meaning of art 20
para 3 of the Federal Act on Stock Exchanges and Securities Trading ( hereinafter „SESTA“ ) in relation to their indirect holdings in the Company held through
Travel Retail Investments SCA. The above mentioned shareholders have, severally but not jointly, agreed to a lock-up period ending 180 days after the first day
of trading of the shares on SWX Swiss Exchange.
Cross-shareholdings
Dufry AG has not entered into cross-shareholdings with other companies in
terms of capital shareholdings or voting rights in excess of 5 %.
Dufry Annual Report 2005 — Corporate Governance
18
2. Capital structure
Share capital as of December 31, 2005
Ordinary share capital
Conditional share capital
Authorized share capital
CHF 70,312,500
14,062,500 fully paid registered shares
with nominal value of CHF 5 each
CHF 7,500,000
1,500,000 fully paid registered shares with nominal value of CHF 5 each
( in connection with convertible debentures, debentures with option rights and similar obligations )
CHF 10,187,500
2,037,500 fully paid registered shares
with nominal value of CHF 5 each
( issuance possible until November 17, 2007)
Details to conditional and authorized share capital
Conditional share capital
Pursuant to Art. 3 bis of the Articles of Incorporation the share capital of Dufry
Ltd 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 group companies.
The preferential subscription rights of the shareholders shall be excluded in
connection with the issuance of convertible debentures, debentures with option rights or 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 Art. 5 of the Articles of Incorporation of the Company ( in
reference to the share register and nominees ).
The Board of Directors may limit or withdraw the right of the shareholders to
subscribe in priority to 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 subsequent
offering to the public without preferential subscription rights seems to be
the most appropriate form of issue at the time, particularly in terms of the
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.
Dufry Annual Report 2005 — Corporate Governance
19
If advance subscription rights are denied by the Board of Directors, the following shall apply :
a ) 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.
b )the respective financial instruments must be issued at the relevant market
conditions.
Authorized share capital
Pursuant to Art. 3 ter of the Articles of Incorporation, the Board of Directors
shall be authorized to increase the share capital in an amount not to exceed
CHF 10,187,500 through the issuance of up to 2,037,500 fully paid registered
shares with a nominal value of CHF 5 per share by not later than November 17,
2007. Increases in partial amounts shall be permitted.
The subscription and acquisition of the new shares, as well as subsequent
transfer of the shares shall be subject to the restrictions set forth in Art. 5 of
the Articles of Incorporation ( in reference to the share register and nominees ).
The Board of Directors shall determine the issue price, the type of payment,
the date of issue of new shares, the conditions for the exercise of the preferential subscription rights, and the beginning date for dividend entitlement.
In this regard, the Board of Directors may issue new shares by means of a
firm underwriting through a banking institution, a syndicate or another third
party and a subsequent offer of these shares to the current shareholders. The
Board of Directors may permit preferential subscription rights that have not
been exercised to expire or it may place these rights and / or shares as to which
preferential subscription rights have been granted but not exercised, at market
conditions or use them for other purposes in the interest of the Company.
The Board of Directors is further authorized to restrict or deny the preferential
subscription rights of shareholders or allocate such rights to third parties if the
shares are to be used :
a ) for the acquisition of an enterprise, parts of an enterprise, or participations,
or for new investments, or, in case of a share placement, for the financing or
refinancing of such transactions ; or
b )for the purpose of broadening the shareholder constituency in connection
with a listing of shares on domestic or foreign stock exchanges, including
in connection with the grant of an over-allotment option to a consortium of
banks.
Dufry Annual Report 2005 — Corporate Governance
20
Changes in equity of Dufry Ltd
Nominal share capital
December 31, 2004
December 31, 2005
CHF 45,000,000
CHF 70,312,500
Share premium
December 31, 2004
December 31, 2005
CHF
–
CHF274,987,500
Available earnings /
( accumulated loss )
December 31, 2004
December 31, 2005
CHF ( 4,829,289 )
CHF 11,643,407
The Company was formed as a stock corporation, organized with limited liability
under the laws of Switzerland and was established on November 3, 2003 and
registered on November 4, 2003, under the name Sintres Holding Ltd. The period
for the first Statutory Income Statement of Sintres Holding Ltd was from
November 4, 2003 to December 31, 2004. Consequently, the first statutory
balance sheet date for the Company was December 31, 2004. For that reason
changes in equity reflect the periods of fiscal year 2004 and fiscal year 2005. On
November 17, 2005 the Company changed its name to Dufry AG ( Dufry Ltd ).
Changes in equity in 2004 / 2005
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 ratio of 1 : 2
and the new nominal value was set at CHF 5 per registered share, resulting in
a nominal share capital of CHF 60 million, divided into 12 million fully paid in
shares. On December 5, 2005, the nominal share capital was increased out of
the existing authorized share capital in the amount of CHF 10,312,500 to CHF
70,312,500, divided into 14,062,500 fully paid in registered shares with a nominal
value of CHF 5 each – as a result of the issuance of 2,062,500 new shares, which
were sold by the Company in the Initial Public Offering. The authorized share
capital was reduced accordingly.
Shares
The share capital of Dufry Ltd is divided into 14,062,500 fully paid in registered
shares with a nominal value of CHF 5 each. All shares are entitled to dividends.
Each share entitles to one vote. The Company maintains a share register showing the name and address of the shareholders or usufructuaries. Only persons
registered as shareholders or usufructuaries of registered shares in the share
register shall be recognized as such by the Company.
Dufry Annual Report 2005 — Corporate Governance
21
Participation certificates and profit sharing certificates
The Company has not issued any non-voting equity securities, such as participation certificates ( Partizipationsscheine ) or profit sharing certificates ( Genussscheine ).
Limitation on transferability and nominee registration of registered shares
— The Articles of Incorporation of Dufry Ltd contain no transfer restrictions
( Vinkulierung ) with regard to the shares.
— However, only persons registered as shareholders or usufructuaries of registered shares in the share register shall be recognized as such by the Company. In the share register the name and address of the shareholders or
usufructuaries is recorded. Changes must be reported to 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.
— The Board of Directors may register nominees with the right to vote in the
share register to the extent of up to 2 % of the registered share capital as set
forth in the commercial register. Registered shares held by a nominee that
exceed this limit may be registered in the share register with the right to vote
if the nominee discloses the names, addresses and number of shares of
the persons for whose account it holds 2 % or more of the registered share
capital as set forth in the commercial register. Nominees within the meaning of this provision are persons who do not explicitly declare in the request
for registration to hold the shares for their own account and with whom the
Board of Directors has entered into a corresponding agreement ( see also
Art. 5 of the Articles of Incorporation ).
— Corporate bodies and partnerships or other 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 ( esp. as syndicates ), shall be treated as
one single nominee within the meaning of the above mentioned regulation in
terms of nominees.
— The Board of Directors may cancel the registration, with retroactive effect
if appropriate, if the registration was effected based on false information or
in case of breach of the agreement between the nominee and the Board of
Directors.
— After consulting the party involved, the Company may delete entries in the
share register if such entries occurred in consequence of false statements by
the purchaser. The purchaser must be informed immediately of the deletion.
With reference to transferability and nominee registrations, no exceptions have
been granted during the year under review.
Convertible bonds and options
There are no outstanding bonds that are convertible into, or warrants or options
to acquire, shares issued by or on behalf of the Company. Dufry does not have
any traditional option plans, but a Restricted Stock Unit ( RSU ) plan, the essentials of which are disclosed under “ compensation, shareholdings and loans ” in
this Corporate Governance section of the Annual Report.
Dufry Annual Report 2005 — Corporate Governance
22
3. Board of Directors
Members of the Board of Directors
Name
Nationality
Position
Juan Carlos Torres Carretero
Ernest George Bachrach
Eric Adjoubel
Xavier Bouton
Gilles Cojan
Mario Fontana
Luis Andrés Holzer Neumann
Joaquin Moya-Angeler Cabrera
Alberto-Pedro Pons Güell
Spain
USA
France
France
France
Switzerland
Mexico
Spain
Spain
Chairman
Deputy Chairman
Member
Member
Member
Member
Member
Member
Member
first
elected
2003
2004
2004
2005
2004
2005
2004
2005
2005
Elected
until AGM
2007
2007
2007
2007
2007
2007
2007
2007
2007
Committees
1, 2
2
1
2
1
1 = Member of Audit Committee
2 = Member of Nomination and Compensation Committee
All members of the Board of Directors are non-executive members.
Juan Carlos Torres Carretero is Chairman of the Board of Directors of Dufry
Ltd. He is the senior partner in charge of Advent International Corporation’s
investment activities in Mexico. He has many years of private equity and senior
management operating experience. Mr Torres joined Advent International in
Boston in 1988 and worked in Madrid for four years before moving to Mexico
City in 1995. He serves as a member of the Board of Directors of Aeroplazas de
Mexico SA de CV, Arabela Holding SA de CV, Hipotecaria Casa Mexicana SA de
CV, Inmobiliaria Fumisa Sa de CV ( president ), Impactos Frecuencia y Cobertura
en Medios SA de CV and Procorp SA 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. He was born in 1949.
Ernest George Bachrach is the deputy chairman of Dufry’s Board of Directors.
He is a senior partner and a member of the executive committee of Advent
International Corporation. Mr Bachrach has more than 20 years of experience
in international private equity investing and joined Advent’s London office in
1990. Since 1995 he has managed the firm’s Latin American regional group.
Mr Bachrach serves as a member of the Board of Directors of Aeroplazas SA
de CV, Arabela Holding SA de CV, the Bunge Group, Impactos, Frecuencia y
Cobertura en Medios SA de CV, Aerocomidas SA de CV, Hildebrando Fumisa
SA de CV and Hipotecaria Casa Mexicana. Mr Bachrach holds a BS in chemical
engineering from Lehigh University and an MBA from Harvard Business School.
Mr Bachrach was born in 1952.
Eric Adjoubel is a managing director of Advent International Corporation and
serves on its Western Europe Investment Advisory Committee. He founded Advent’s Paris office in 1997 and has over 20 years of private equity experience.
Mr Adjoubel serves as a member of the Board of Directors of Sportfive SA Luxembourg and BCS SA France. He holds a degree in industrial engineering and
economics and an MBA from Harvard Business School. Mr Adjoubel was born
in 1951.
Dufry Annual Report 2005 — Corporate Governance
23
Xavier Bouton is chairman of the Supervisory Board of FSDV ( Fayenceries de
Sarreguemines Digoin & Vitry le François ) based in Paris, France, a director at
Laboratoires Chemineau SA, at ADL Partners and Stroer France. 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. He was born in 1950.
Gilles Cojan was a group managing director and member of the executive
committee of Elior until October 2005 and is currently a consultant to the Elior
Group. He serves as a member of the Board of Mychef, Italy. Mr Cojan is a
graduate of L’ Ecole Supérieure des Sciences Economiques et Commerciales
and was born in 1954.
Mario Fontana is chairman of the Board of Directors of Swissquote and Amazys.
In addition, he serves on the Board of Directors of SBB, Sulzer and Inficon. Mr
Fontana has studied engineering at the Swiss Federal Institute of Technology
and the Georgia Institute of Technology. He was born in 1946.
Luis Andrés Holzer Neumann is the president of Grupo Industrial Omega,
the holding company of Holzer and Company, Industria Nacional de Relojes
Suizos, Inmobiliara Coapa Larca SA de CV, and Inmobiliara Castellanos SA de
CV. He serves as a member of the Board of Directors of Aeroplazas, Inmobiliaria
Fumisa SA de CV, Consorcio Industrial SA de CV, Opequimar, Consorcio Metro­
politano Inmobiliario, the Mexican Council of Foreign Affairs, Grupo Domit and
Lideres Mexicanos Magazine. Mr Holzer Neumann is a graduate of Boston University and holds an MBA from Columbia University. He was born in 1950.
Joaquin Moya-Angeler Cabrera has focused his career on the technology and
real estate industries, including having founded a number of companies. He
is chairman of Redsa, Hildebrando, Presenzia, Pulsar Technologies, La Quinta
Real Estate, Inmoan and Avalon Private Equity. He serves as a member of the
Board of Directors of Indra, Palamon Capital Partners, MCH, Grupo Leche Pascual and Cosentino. He is also chairman of several non profit organizations:
Corporación Tecnológica de Andalucía, Board of trustees of the University of
Almeria and La Fundación Mediterránea. 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. He was born in
1949.
Alberto-Pedro Pons Güell is the managing director of EMESA, S. L. and Concordia de Inversiones Mediterraneas SIMCAV. He serves on the Board of Directors of Metropolis Inmobiliarias y Restauraciones, S. L., Topox, S. L. and Net
Technology, S. L. Mr Pons Güell holds a degree in industrial engineering from
the Barcelona Polytechnic University. He was born in 1958.
None of the non-executive members of the Board of Directors has ever been in
a management position at Dufry Ltd or any of its subsidiaries. Neither has any
of the non-executive members of the Board of Directors significant business
connections with Dufry Ltd or any of its subsidiaries.
Dufry Annual Report 2005 — Corporate Governance
24
Cross-involvement
There are no cross-involvements between the Board of Directors of Dufry Ltd
and any other listed company. The table below shows the functions of the Board
members in other listed companies.
Name of the Board Member
Listed Company
Juan Carlos Torres Carretero
Ernest George Bachrach
Eric Adjoubel
Xavier Bouton
—None
—Bunge Group Ltd, Board member
—None
—F. S. D. V. ( Fayenceries de Sarreguemines Digoin & Vitry le François ),
Chairman of Supervisory Board
—ADLP, Board member
—Elior SCA, Consultant
—SBB, Bern, Board member —Sulzer, Winterthur, Board member until April 12, 2006
—Swissquote, Gland, Chairman
—Amazys, Regensdorf, Chairman
—Inficon, Bad Ragaz, Board member
—None
—Indra, Board member
—Concordia de Inversiones, Mediterraneas S. I. M. C. A. V, Vice-Chairman
Gilles Cojan
Mario Fontana
Luis André Holzer Neumann
Joaquin Moya-Angeler Cabrera
Alberto-Pedro Pons Güell
Election and terms of office
— The Board of Directors shall consist of at least three members.
— Members of the Board of Directors are elected by the General Meeting
for a maximum term of three years. A year shall mean the period running
between one Ordinary Meeting of Shareholders and the next. Previous resignation and dismissal may change the terms of office. New members
elected during the year shall continue in office until the end of their predecessor’s term.
— 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 may be re-elected without limitation.
Committees of the Board of Directors
The Board of Directors determines its own organization. It shall elect its Chairman and one or two Vice-Chairmen. It shall appoint a Secretary and his substitute, neither of whom need to be members of the Board of Directors.
The Board of Directors has established as of November 2005 the following committees to further strengthen the corporate governance structure of the Company :
Audit Committee
Members : Joaquin Moya-Angeler Cabrera ( Chairman ), Juan Carlos Torres Carretero, Mario Fontana.
Dufry Annual Report 2005 — Corporate Governance
25
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, 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 generally meets on the same dates the Board of Directors meetings take place,
although the Chairman may call meetings as often as business requires.
Nomination and Remuneration Committee
Members : Ernest George Bachrach ( Chairman ), Luis Andrés Holzer Neumann,
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 for
assuring the long-term planning of appropriate appointments to the positions of
the Chief Executive Officer and the Board of Directors, as well as for the review
of the remuneration system of the Company, to make proposals in relation to
the remuneration of the CEO and of the members of the Board of Directors, as
well as on the grant of options or other securities under employee participation
plans of the Company, if any. The Nomination and Remuneration Committee
generally meets on the same dates the Board of Directors meetings take place,
although the Chairman may call meetings as often as business requires.
Work methods of the Board of Directors and of its committees
As a rule, the Board of Directors meets about four to six times a year. Additional meetings or conference calls are held as and when necessary. The Board
of Directors held ten meetings (including conference calls) during fiscal year
2005. The ordinary meetings of the Board of Directors usually last half a day.
The Chairman usually determines the agenda and items to be discussed at
the Board meetings. All members of the Board of Directors can request to add
further items on the agenda.
The Chief Executive Officer, the Chief Financial Officer, the Global Chief Operating Officer and the General Counsel, acting as Secretary to the Board, attend
the meetings of the Board of Directors. Other members of the Group Executive
Committee attend meetings of the Board of Directors as and when required.
The Board of Directors also engages external consultants and specialised attorneys to address specific topics when required.
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.
Dufry Annual Report 2005 — Corporate Governance
26
The Board of Directors has the following non-delegable and inalienable duties:
— 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 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 of Incorporation, regulations and directives
— preparation of the business report and the Meetings of Shareholders and to
carry out the resolutions adopted by the Meeting of Shareholders
— 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 of the Articles of Incorporation entailed thereby
— examination of the professional qualifications of the specially qualified Auditors in the cases in which the law foresees the use of such Auditors
— non-delegable and inalienable duties and powers of the Board of Directors
pursuant to the Swiss Merger Act.
Except for the Chairman of the Board of Directors, who has single signature
authority, the members of the Board who have signature authority, have joint
signature authority.
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, together with the Group Executive Committee, is
responsible for overall management of the Dufry Group. A detailed definition
of areas of responsibility is set down in the Organizational Guidelines of the
Company.
Information and control instruments vis-à-vis the senior management
Dufry Group has an internal management information system ( MIS ) that consists of management reporting, risk management information and financial
consolidation.
On a monthly basis, income statements, balance sheets and further financial
details are entered in the management reporting system. This information is
then consolidated for the Group as a whole, and compared against the results
of the previous year and the current budget. Financial reports are submitted to
the Board of Directors on a quarterly basis.
During Board meetings, each member of the Board may request information
from the other members of the Board, as well as from the members of the
management present on all affairs of the Company and the Group. Outside of
Dufry Annual Report 2005 — Corporate Governance
27
Board meetings, each member of the Board may request from the CEO information concerning the course of business of the Company and the Group and,
with the authorization of the Chairman, about specific matters. The CEO shall
at each meeting of the Board report to the Board on the course of business
of the Company and the Group in a manner agreed upon from time to time
between the Board and the CEO. Apart from the meetings, the CEO reports
immediately any extraordinary event and any change within the Company and
within the Group to the Chairman.
Dufry Annual Report 2005 — Corporate Governance
28
4. Group Executive Committee
Members of the Group Executive Committee
Name
Julián Díaz González
Xavier Rossinyol
José Antonio Gea
Pascal C. Duclos
Dante Marro
Nationality
Spain
Spain
Spain
Switzerland
Italy
Position
Chief Executive Officer
Chief Financial Officer
Global Chief Operating Officer
General Counsel
Chief Operating Officer
Region Europe
Chief Operating Officer
Region Africa
appointed in year
2004
2004
2004
2005
2002
Miguel Ángel Martínez
Spain
René Riedi
Switzerland
Chief Operating Officer
Region Eurasia & Asia
2001
José H. González
USA
Chief Operating Officer
Region Americas & Caribbean
2002
2004
Julián Díaz González is Chief Executive Officer. Before his current role at Dufry,
he was the General Manager of Latinoamericana Duty-Free, SA de CV from
2000 to 2003. 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. He earned a degree in business
administration from Universidad Pontificia Comillas de Madrid in 1980. He was
born in 1958.
Xavier Rossinyol is Chief Financial Officer. Before his current role at Dufry, Mr
Rossinyol held various positions at Áreas (member of the French listed group
Elior) from 1995 onwards with responsibility for finance, controlling, strategic
planning and left Áreas as its Corporate Development Director in 2003. Mr
Rossinyol earned a bachelor’s degree in Business Administration at ESADE
( Spain ) and a MBA at ESADE and at the University of British Columbia ( Canada
and in Hong Kong ) in 1993 and a master’s degree in business law from Universidad Pompeu Fabra (Spain) in 1994. Mr Rossinyol was born in 1970.
José Antonio Gea is 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 2003. Prior to that, he held various positions at TNT Express Espana, SA from 1989 onwards and was 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.
Pascal C. Duclos is General Counsel and Secretary to the Board of Directors.
Before his current role at Dufry, Mr Duclos was a senior foreign attorney at
law at the Buenos Aires law firm Beretta Kahale Godoy from 2003 to 2004 and
he was a financial planner at UBS AG in New York from 2001 to 2002. Prior to
that, he was an attorney at law at the New York law firm Kreindler & Kreindler
from 1999 to 2001 and a senior attorney at law at the Geneva law firm Martin &
Dufry Annual Report 2005 — Corporate Governance
29
Davidoff from 1991 to 1997. Between 1994 and 1996, he was also an academic
assistant at the University of Geneva School of Law. Mr Duclos earned a licence
en droit from Geneva University School of Law and LL. M. from Duke University
School of Law. Mr Duclos is licensed to practice law in Switzerland and is admitted to the New York Bar. Mr. Duclos was born in 1967.
Dante Marro is Chief Operating Officer for the 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. Mr Marro holds graduate
degrees in architecture and business administration and was born in 1944.
Miguel Ángel Martínez is Chief Operating Officer for the 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.
René Riedi is Chief Operating Officer for the Region Eurasia and Asia. Before
joining the Company in 1993, he worked in product marketing and international
sales at FMCG. Mr Riedi holds a degree in business administration from the
School of Economy and Business Administration Zurich and was born in 1960.
José H. Gonzalez is Chief Operating Officer for the Region Americas & Caribbean. Before joining the Company in 1995, Mr Gonzales 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.
Dufry Annual Report 2005 — Corporate Governance
30
Other activities and vested interests
None of the members of the Group Executive Committee has activities in governing and supervisory bodies of important Swiss and foreign organizations,
institutions and foundations under private and public law. Nor does any member of the Group Executive Committee have permanent management and consultancy functions for important Swiss and foreign interest groups, or hold any
official functions and political posts.
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 percent of the Company‘s shareholding
in both its 60 percent 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 on December 31, 2020 at the latest, permit it to enjoy the benefits of share ownership, including the receipt of
dividends, even though the shares remain vested in a Group company. 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 6 percent and 10 percent, 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.
Management contracts
Dufry Group does not have management contracts with companies or natural
persons not belonging to the Group.
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5. Compensation, shareholdings and loans
Content and method of determining the compensation
and the shareholding programmes
Board of Directors
The Board determines the amount of the fixed remuneration of its members,
taking into account their responsibilities, experience, and the time which they
invest in their activity as members of the Board. The Nomination and Remuneration Committee makes proposals in relation to the compensation of the
members of the Board. Extraordinary assignments or work which a member of
the Board accomplishes outside of his / her activity as a Board member shall be
specifically remunerated. Such remuneration shall be approved by the Board. In addition, the Board shall be reimbursed all reasonable cash expenses properly incurred by them in the discharge of their duties.
Group Executive Committee
Members of the Group Executive Committee receive compensation packages,
which consist of a basic salary and a performance related bonus. The Nomination and Remuneration Committee makes proposals in relation to the compensation of the CEO. The Board of Directors has the ultimate authority to approve
such proposals. Certain members of the Group Executive Committee were
granted a right to receive a bonus upon completion of the Initial Public Offering,
which took place in December 2005. The bonus is based upon the offer price
per offered share.
In addition, the Company has – in connection with the Initial Public Offering
– approved a restricted stock unit ( RSU ) plan for certain members of the Group
Executive Committee ( RSU plan participants ). Under the RSU plan, the Company granted the RSU plan participants, as of January 1, 2006, a right to receive
in December 2007, free of charge, an amount of 58,000 shares in the aggregate.
In addition, the Company plans to grant to the RSU plan participants, in December 2006 a further right to receive, free of charge, a certain number of shares
based on the price per share then prevailing. The RSU plan is linked to the
following conditions and incentives: Rights granted as of January 1, 2006 will
vest on December 6, 2006 and rights granted on the first anniversary of the IPO
will vest on December 6, 2007, provided that the average share price on SWX
Swiss Exchange for the 10 trading days immediately preceding the vesting date
is equal to or higher than 101 percent of the share price at the grant. If the average share price on SWX Swiss Exchange for the 10 trading days immediately
preceding the vesting date is below the level of 101 percent, no rights will vest
and, as a result, no shares will be allocated. From an economic point of view,
the RSUs are stock options with an exercise price of nil.
The RSU plan is designed to provide its participants with an incentive equal to
100 percent of their base salary in case of a 20 percent increase in the price per
share during each respective vesting period. Any RSU granted will be forfeited
should the RSU participant cease to be an employee of the Company during the
vesting period.
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Compensation for acting members of governing bodies
The following compensations were paid in 2005 :
Board of Directors
The members of the Board of Directors ( all non-executive ) received aggregate
compensation including bonuses amounting to a total of CHF 22,000 in the fiscal year 2005.
Group Executive Committee
The members of the Group Executive Committee received aggregate compensation amounting to CHF 7,173,261 in fiscal year 2005, of which CHF 3,157,995
are related to the IPO and CHF 496,203 correspond to post-employment pension and other benefits. The amount includes compensation to one member of
the Group Executive Committee who gave up the function during 2005.
No additional severance payments were made during fiscal year 2005 to members of governing bodies, who ended their functions during 2005.
Compensations for former members of governing bodies
During fiscal year 2005, no compensation was paid to any members of governing bodies, who ended their function in 2004 or at an earlier date.
Share allotment in the year under review
No shares were allotted in fiscal year 2005.
Share ownership
The members of the Board of Directors and parties closely linked to such persons, held no shares in Dufry Ltd as of December 31, 2005, except that one of
the Company’s directors, Mr Luis Andrés Holzer Neumann, and certain of his
family members are the beneficiaries of a trust that controls Petrus PTE Ltd.
The members of the Group Executive Committee and parties closely linked to
such persons, held no shares in Dufry Ltd as of December 31, 2005.
Options
The Company has no traditional option plans outstanding. However, it has approved a restricted stock unit ( RSU ) plan in connection with the Initial Public
Offering. Beneficiaries of this plan are certain members of the Group Executive
Committee. From an economic point of view, the RSUs are stock options with
an exercise price of nil.
Options granted to Board members
None
Options granted to members of Group Executive Committee
None
Dufry Annual Report 2005 — Corporate Governance
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Allotment year
RSU held as of January 1, 2006
Vesting date
Exercise date Exercise condition
Subscription ratio
Exercice price in CHF
2006
58,000
December 6, 2006
December 6, 2007
Share price at vesting date is equal or higher than 101 % of CHF 80
( average share price of 10 trading days preceding vesting date )
1:1
0
The 58,000 RSUs would, if vested, represent 0.41 % of the total current ordinary
share capital.
Additional fees and remuneration
There are no additional fees or remunerations billed to Dufry or one of its Group
companies 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.
Loans granted to governing bodies
Neither Dufry Ltd nor any of its subsidiaries have granted any guarantees or
outstanding loans, advances or credits to members of the Board of Directors or
to members of the Group Executive Committee.
Highest total compensation
The highest total compensation paid to a member of the Board of Directors in
2005 was CHF 4,000 gross. No shares and no options were allotted.
Dufry Annual Report 2005 — Corporate Governance
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6. Shareholders’ participation rights
Voting rights and representation
Each share recorded as share with voting rights in the share register confers
one vote on its registered holder. Every shareholder may be represented at the
Meeting of Shareholders by any person who is authorized to do so by a written
proxy. A proxy does not need to be a shareholder. Shareholders entered in the
share register as shareholders with voting rights on a specific qualifying date
designated by the Board of Directors shall be entitled to vote at the Meeting of
Shareholders and to exercise their votes at the Meeting of Shareholders.
Quorums
The Meeting of Shareholders shall be duly constituted irrespective of the number of shareholders present or of the shares represented. Unless the law or
Articles of Incorporation provide for a qualified majority, an absolute majority of
the votes represented at a Meeting of Shareholders is required for the adoption
of resolutions or for elections, with abstentions, blank and invalid votes having
the effect of „no“ votes. The Chairman of the Meeting shall have a casting vote.
A resolution of the Meeting of Shareholders passed by at least two thirds of
the votes represented and the absolute majority of the nominal value of shares
represented, shall be required for :
1. a modification of the purpose of the Company
2. the creation of shares with increased voting powers
3. restrictions on the transfer of registered shares and the removal of such
restrictions
4. restrictions on the exercise of the right to vote and the removal of such re-
strictions
5. an authorized or conditional increase in share capital
6. an increase in share capital through the conversion of capital surplus,
through a contribution in kind or in exchange for an acquisition of assets, or
a grant of special benefits upon a capital increase
7. the restriction or denial of pre-emptive rights
8. the change of the place of incorporation of the Company
9. other matters where statutory law provides for a corresponding quorum
Convocation of the Meeting of Shareholders
The Meeting of Shareholders shall be called by the Board of Directors or, if
necessary, by the Auditors. One or more shareholders with voting rights representing in aggregate not less than 10 % of the share capital can request, in
writing, that a Meeting of Shareholders shall be convened. Such request must
be submitted to the Board of Directors, specifying the items and proposals to
appear on the agenda.
The Meeting of Shareholders shall be convened by notice in the Swiss Official
Gazette of Commerce ( SOGC ) not less than 20 days before the date fixed for the
Meeting. Registered shareholders will also be informed by ordinary mail.
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Agenda
The invitation for the Meeting of Shareholders shall state the day, time and
place of the Meeting, and the items and proposals of the Board of Directors and
the shareholders who demand that the Meeting of Shareholders be called or
that items be included in the agenda. One or more shareholders with voting rights whose combined holdings represent an aggregate nominal value of at least CHF 1,000,000 may request that an
item be included in the agenda of a Meeting of Shareholders. Such a request
must be made in writing to the Board of Directors at the latest 60 days before
the Meeting and shall specify the agenda items and the proposals made.
Registration in the share register
The record date for the inscription of registered shareholders into the share
register in view of their participation in the Meeting of Shareholders is defined
by the Board of Directors. It is usually 19 days before the Meeting. Shareholders
who dispose of their shares before the Meeting of Shareholders are no longer
entitled to vote.
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7. Change of control and defence measures
Duty to make an offer
The Articles of Incorporation of the Company contain neither an opting-out nor
an opting-up provision ( Art. 22 SESTA ). Clauses on change of control
Dufry Ltd has not entered into agreements pursuant to which members of the
Board of Directors or members of the Group Executive Committee would benefit from a change of control of the Company.
8. Auditors
Group Auditors and Statutory Auditors
Pursuant to the Articles of Incorporation, the Statutory and Group Auditors shall
be elected every year. The Statutory and the Group Auditors may be re-elected.
Ernst & Young Ltd acted as Statutory and Group Auditors of the Company and
has held the mandate of external auditor of the Company since its inception in
2004. Otto Walther has been the auditor in charge for the consolidated financial
statements of the Company and the statutory financial statements as of December 31, 2004. Bruno Chiomento has been the auditor in charge starting in
the financial year 2005.
Auditing fee
During fiscal year 2005, Ernst & Young Ltd received a fee of CHF 1,030,000 for
services in connection with auditing the statutory annual financial statements
of Dufry Ltd and the consolidated statements of the Dufry Group.
Additional fees
Additional fees amounting to CHF 1,728,000 were paid to Ernst & Young for audit
related services in connection with the Initial Public Offering of the Company in
2005.
Supervisory and control instruments pertaining to the audit
The Audit Committee as a committee of the Board of Directors reviews and
evaluates the performance, fees and independence of the Group and Statutory
Auditors each year. The Audit Committee determines the scope of the external
audit, audit plans and relevant processes with the auditors and discusses the
results of the respective audits with the external auditors. Representatives of
the Statutory Auditors are regularly invited to meetings of the Audit Committee.
Dufry Annual Report 2005 — Corporate Governance
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9. Information policy
Dufry is committed to open and transparent communication with its shareholders, financial analysts, potential investors, the media, customers, suppliers and
other interested parties.
Dufry publishes its financial reports on an annual and half-year basis. Dufry
intends to publish condensed financial reports on a quarterly basis starting
in 2006. The financial reports shall be available on the Company website and
include a summary of events during the reported quarter as well as condensed
financial reporting.
In addition, Dufry organizes presentations and conference calls with the financial community and media to further discuss details of the reported earnings or
on any other matters of importance. The Company undertakes roadshows for
institutional investors on a regular basis.
On the Dufry website www.dufry.ch there is different information available concerning the business activities, company structure, financial reports, press releases, investor information, etc.
For the Investor Relations and Corporate Communications contacts please refer to page 95 of this Annual Report.
Dufry Annual Report 2005 — Corporate Governance