Hogg Robinson Group Regulatory News (HRG)

22 May 2013 Hogg Robinson Group plc ('HRG', 'the Company' or 'the Group') Preliminary Results for the year ended 31 March 2013 Solid performance under tough market conditions Summary of results Years ended 31 March 2013 2012 Change Revenue £343.2m £374.2m -8% Underlying earnings (1) - Operating profit £48.8m £47.2m +3% - Operating profit margin 14.2% 12.6% +1.6 pp - Profit before tax £38.3m £38.2m - - Earnings per share 8.6p 8.3p +4% Reported earnings - Operating profit £44.8m £43.1m +4% - Profit before tax £34.3m £34.1m +1% - Earnings per share 7.7p 7.4p +4% Dividend per share 2.1p 2.0p +5% Net debt £87.0m £61.0m +£26.0m Free cash (outflow)/inflow (2) (£10.5m) £19.6m -£30.1m Highlights

Revenue 8% lower whilst underlying EPS 4% ahead reflecting ability to manage cost base

Underlying operating profit margin up 1.6 pp to 14.2%

Full-year dividend up 5% to 2.1p per share with dividend cover of 4.1x (2012: 4.2x)

Consistently high client retention rate maintained with renewals including GDF Suez,Lloyds Banking Group and Roche

Outlook

Expect economic conditions to remain weak

Strong pipeline of opportunities across multiple client sectors

Trading since the year end has been in line with expectations

Expect to make further progress through the rest of FY14

Notes:

(1) Before amortisation of acquired intangibles

(2) Free cash flow is the changein net debt before acquisitions and disposals,Employee Benefits Trust purchases, dividends and the impact of foreign exchangemovements; the active working capital programme was implemented in 2009 andwithdrawn in 2013

(3) References to client travel activity and client travel spend throughoutthis document are unaudited

David Radcliffe, Chief Executive of Hogg Robinson Group plc, said:

"HRG delivered a resilient performance under testing conditions. We haveremained focused on maintaining a cost base that is appropriate to the marketbackdrop while ensuring that our usual high standard of client service is notcompromised. Our focus continues to be on delivering good value to our clientsthrough excellent service which meets their specific requirements. "Standing still is not an option for HRG. We play a leading role in aconstantly changing industry. The breadth of the Group's services hasbroadened in recent years to include travel, expense and data management, allunderpinned by proprietary technology. HRG brings these services together witha strategy focused on two core elements: managed travel and the provision oftechnology solutions and services. This strategy provides a sensible balanceof resilience and growth and, whilst still in its infancy, we are starting tosee good traction in the market for our technology offer. "Notwithstanding our anticipation that trading conditions will remain toughduring the current financial year, HRG has traded in line with our expectationssince the year end and we expect to make further progress through the rest ofthe year." Contact Details Hogg Robinson Group +44 (0)1256 312 600 David Radcliffe, Chief ExecutivePhilip Harrison, Group Finance DirectorAngus Prentice, Head of Investor Relations Tulchan Communications +44 (0)20 7353 4200Stephen MalthouseDavid AllchurchMartin Robinson Notes to Editors

Hogg Robinson Group plc (HRG) is the award-winning international corporateservices company. Established in 1845 and headquartered in Basingstoke,Hampshire, UK, HRG specialises in travel, expense and data managementunderpinned by proprietary technology. With a worldwide network that comprisesover 120 countries, HRG provides unparalleled global expertise and localknowledge in Europe, North America, Asia Pacific, Africa, Latin America andMEWA. Read the latest HRG news and search our archives.

www.hrgworldwide.com A presentation for analysts and institutional investors will be held at 0900hBST today at Tulchan Communications, 85 Fleet Street, London EC4Y 1AE. Aconference call facility and live webcast will also be available for analystsand institutional investors unable to attend in person. Pre-registration forthis event is necessary to comply with security procedures at the venue. Toregister your interest in attending the presentation, or to obtain conferencecall details and access to the live webcast, please contact TulchanCommunications on +44 (0)20 7353 4200. A replay recording of the presentationvia audio webcast and podcast with audio commentary from HRG's presentationteam will be available at www.hrgworldwide.com by 1100h BST today or soonthereafter. This announcement may contain forward-looking statements with respect tocertain of the plans and current goals and expectations relating to the futurefinancial conditions, business performance and results of Hogg Robinson Groupplc (HRG). By their nature, all forward-looking statements involve risk anduncertainty because they relate to future events and circumstances that arebeyond the control of HRG, including amongst other things, HRG's futureprofitability, competition with the markets in which the Company operates andits ability to retain existing clients and win new clients, changes in economicconditions generally or in the travel and airline sectors, terrorist andgeopolitical events, legislative and regulatory changes, the ability of itsowned and licensed technology to continue to service developing demands,changes in taxation regimes, exchange rate fluctuations, and volatility in theCompany's share price. As a result, HRG's actual future financial condition,business performance and results may differ materially from the plans, goalsand expectations expressed or implied in these forward-looking statements. HRGundertakes no obligation to publicly update or revise forward-lookingstatements, except as may be required by applicable law and regulation(including the Listing Rules). No statement in this announcement is intendedto be a profit forecast or be relied upon as a guide to future performance. Chairman's Statement Hogg Robinson Group's results for 2012/13 are testament to the resilience ofour business model and our ability to manage our cost base tightly. In marketsthat remain difficult to predict, clients continue to look to Hogg RobinsonGroup for support in helping them to achieve best value from their travel andrelated expenditure and to reduce overall spend, and this is again reflected inour new business wins and renewals. Based on our performance for the year, wepropose an increase in the total dividend per share of 5%, maintaining ourcommitment to a progressive dividend policy. The results will be reported in more detail by Chief Executive David Radcliffeand all I seek to do here is summarise the macro conditions in which we and ourclients operated in 2012/13. Economic growth was nonexistent or even slightlynegative in the UK and the rest of Europe. In North America GDP growth wasaround 2% while in Asia Pacific and the rest of the world, higher levels ofgrowth could be found but a number of economies were affected by slowing growthin China. A significant proportion of our revenue and profits is generated inthe UK and Europe and given the global economic backdrop described above, weare pleased with what our business has achieved. This last year clients have again relied on our knowledge and experience tofind innovative solutions to help them meet their specific objectives. Acommon aim for most has been cost reduction and, as a result of our advice, wehave seen a continuation of the trend by clients to use our internet bookingtools to supplement and, on occasion, replace our more traditional directtravel management service. As this dynamic occurs, we adjust our coststructure to reflect the new business preferences and work with clients toensure they have the type of service to suit their needs. In this way we havebeen able to maintain profitability, and expect to do so going forward. Ourservice offering has been enhanced by the inclusion of expense managementsystems developed by our subsidiary, Spendvision. We were delighted when ourcombined capability proved to be critical in winning the Government of Canadaas a new client. This win was also underpinned by the excellence of ourtechnology and in future years we hope to further capitalise on the investmentwe have made and continue to make in this area. We review our risk management processes elsewhere in the report including themitigating actions that can be taken should events occur. In common with allbusinesses, the effective identification and management of risks across ouroperations, including those around developing technologies and cyber terrorism,are integral to the delivery of the Group's strategic objectives. We are veryaware of these risks and are ready to respond in the event it is necessary. I referred in my report last year to our intention to withdraw our activeworking capital programme. As a result, and as expected, year-end net debtrose, increasing by £26m to £87m. A key focus for management is to use thecash flow generation capabilities of the business to reduce this amount in thenear to medium term, at the same time as delivering our progressive dividendpolicy. The Group's pension deficit increased from last year's level of £146m to £159m,principally due to lower discount rates. We have already taken a number ofsteps to limit the Group's exposure, including closing the UK defined benefitscheme to new entrants and putting salary caps in place. We have now enteredconsultation with the active members of our UK defined benefit scheme on aproposal to close the scheme to future accrual and replace it with a definedcontribution scheme. We hope a conclusion can be reached on this in the nextfew months. I am mindful of the effect this will have on our colleagues but itis in line with what many companies have already done and it reflects theunfortunate fact that defined benefit schemes have become too expensive and toovolatile in their impact on companies' finances to be sustained in the privatesector. Since my last statement, Philip Harrison has joined the company as GroupFinance Director and has rapidly become part of our team. We have a smallBoard with three executive and three non executive directors as we believe thisprovides clear, well informed and focused leadership, appropriate to the sizeof the company. However, many more than six people are engaged in running thecompany and providing the service to clients that is essential to the successof this business. To all those colleagues I would like to express my thanksfor their contribution and the commitment they demonstrate on a regular basis. John Coombe Chairman Chief Executive's Statement Overview and strategy HRG delivered another resilient performance given the ongoing unpredictablenature of the principal markets in which the Group operates. For the yearended 31 March 2013, our revenue fell by 8% to £343m while underlying operatingprofit margin rose from 12.6% to 14.2%. Reported profit before tax and EPSwere up 1% and 4%, respectively. Client travel activity fell by 5% and travelspend by 8% during the period. In response to the market slowdown andpredicted continuation of the trend by clients to use our online booking tools,we reduced our staffing levels and other operating costs during the year andintroduced a number of self-help measures designed to further reduce our costsand protect margin as we go forward. As we have often seen in previous periods of austerity, clients rely on ourdepth of experience and expertise to devise innovative and effective travel andexpense management solutions to help them meet their objectives. More often,we see opportunities to deploy HRG's technology products and solutions to greateffect as part of a series of actions designed to meet the particular needs ofeach of our clients. Online self-booking tools, including HRG OnlineTM, arenow used by many of our clients as an effective way of making good use ofavailable technology to help them reduce the cost of making travel bookings,particularly on simpler itineraries. Client adoption of online self booking oftravel continues to rise. As clients move from 'classic', telephone-basedservice to technology-based service, our revenue is likely to be affected andwe need to ensure related operating costs remain appropriate for the newservice configuration. HRG is a leading player in a constantly changing industry. Our focus continuesto be on delivering good value to our clients through excellent service whichmeets their unique requirements. As the breadth of the Group's services hasbroadened in recent years to include travel, expense and data managementunderpinned by proprietary technology, HRG's strategy has evolved also. Ourcurrent strategy has two core elements:

Managed travel - To grow our managed travel business by increasing our businessfrom existing clients with new service offerings, entering new markets andwinning new business by leveraging our technology and service delivery

Software as a Service (SaaS) - To develop a SaaS business focused on providingtravel, expense and payment solutions to existing and new clients, eitherdirect or through third party travel and payment providers

We believe that this strategy, which now includes the provision of technologysolutions not only to our existing clients but also to the wider travel andexpense industry, provides a sensible balance of resilience and growth. Theability to combine excellent managed travel services with best-in-classtechnology solutions also supports our reputation as one of the world's leadinginternational corporate services companies, helping us sustain a business whichdelivers value to all stakeholders in the toughest of trading climates. The global business travel market is expected to grow at a rate of 4% per annumduring the period to 2022, according to the World Travel and Tourism Council,with Europe and North America predicted to grow at 2% and 3% per annum,respectively. We estimate that the expense management market will grow by 6%per annum in the same period. Our medium-term objectives are to grow revenueby 2-4% per annum, maintain underlying operating profit margin in the range13-14.5%, reduce net debt to 0.7-1.0 times EBITDA, and to continue with ourprogressive dividend policy. In growing our managed travel business over thenext few years, our strategic priorities include increasing revenue fromexisting clients through new service offerings in areas such as meetings,groups and events, data analytics, consulting and card payments; entering newmarkets such as logistics serving the marine, offshore and energy sectors; andwinning new business by leveraging our technology and service delivery, forexample in the Government sector and through the launch of new end-to-endtravel and expense management products. We aim to develop our SaaS businessboth direct to corporates and national organisations, and indirectly viathird-party travel and payment providers such as global distribution system(GDS) providers and financial services organisations. During the first half of the year, we signed an agreement to license some ofour travel technology to a leading GDS provider, reinforcing the Group's B2Btechnology strategy. Our earnings in the period benefited from this agreementand we will see further contribution through the life of the agreement. In thesecond half, we entered into a preferred relationship with Citi CommercialCards, a leading commercial card provider to large and multi-nationalorganisations globally. This new relationship provides an opportunity tomaximise our combined market knowledge and technologies to deliver enhancedtravel programme solutions to the end-to-end process of travel, payment andexpense management. The growing importance and prevalence of technology in thetravel industry is unquestionable. Owning our own technology provides HRG withthe necessary flexibility to adapt and respond to future changes, giving theGroup a significant advantage over its principal peers. Our continuing focus remains on providing a premier service that meets thespecific needs of each of our clients throughout the world. Our staff'sattention to detail and determination to deliver excellent service to clientsand colleagues has once again been rewarded as we have maintained ourconsistently high client retention rate. Also, we won more business during theperiod than we lost. Amongst several new clients that we welcomed during theyear, of particular note are Bayer, Centrica, Cricket Australia, the Governmentof Canada, Hansel, KfW, NetApp, Pirelli and Unilever. We are encouraged by thescale and scope of these wins which bode well for the future. Our performance this year provides a reminder of the fact that our model doesnot rely solely on revenue growth to enable margin progression. We willcontinue our regime of sensible and appropriate cost control, ensuring that ouroperating costs match closely client activity levels. Self-help measures,including structural changes, will cost £6.5m in FY14, which will be treated asan exceptional item, and we will see annualised cost benefits of £6.5m fromFY15 which will be reinvested in the business.

Current trading and outlook

The Group has traded in line with our expectations since the year end. Overallin the current year, whilst global prospects are showing some signs ofimprovement, given the economic and political uncertainties that continue toexist in several of our key markets, we expect trading conditions in ourindustry to remain weak. However, primarily as a result of our initiatives todrive incremental revenue growth, our cost reduction programme and the benefitof new business wins, we expect to make further progress through the rest ofthe year. David Radcliffe Chief Executive Financial results

Revenue of £343.2m was down 8% as reported, or 7% lower at constant exchangerates. Underlying operating expenses, which are before the amortisation ofacquired intangibles, were down 10%, or down 8% at constant exchange rates.

Underlying operating profit was up by 3% to £48.8m, and represented a marginimprovement from 12.6% to 14.2%. New technology sales, net of relatedadditional investment, contributed approximately 7% of underlying operatingprofit for the year. Underlying profit before tax increased by £0.1m to £38.3m, and underlying EPS increased by 4% from 8.3p to 8.6p. After includingthe amortisation of acquired intangibles, reported operating profit was up by4%, profit before tax was up by 1% and EPS increased by 4%.

Reported revenue per employee decreased by 1.0% from £69.3k to £68.6k. Atconstant exchange rates this was an increase of 0.7%.

Year-end net debt rose, as expected. The increase of £26.0m reflects ourpreviously-announced decision to discontinue the active working capitalprogramme (£31.4m), dividends paid during the year (£6.2m) and share purchasesby the Employee Benefits Trust (£8.1m). The Group's active working capitalprogramme was introduced during 2009 to help remove uncertainty aboutcompliance with banking covenants. Net debt of £87.0m at 31 March 2013represented 1.4x EBITDA for the last 12 months. We continue to operate wellwithin our banking covenants.

The Group has a progressive dividend policy and the Board is recommending afinal dividend of 1.5p per share resulting in a full-year dividend of 2.1p pershare, an increase of 5% on the prior year. Our dividend is covered 4.1x(2012: 4.2x) by underlying EPS. The final dividend will be paid on 29 July2013 to shareholders on the register at the close of business on 28 June 2013.

Operational Review Client activity

Client travel booking activity declined by 5% during the financial year, whileclient travel spend fell by 8% or 6% at constant currency.

Against a generally weak and uncertain macroeconomic backdrop, businessconfidence amongst our clients remained subdued with the result that agenerally cautious approach to travel and related expenditure continued to beadopted. Three specific trends characterised many of our clients' activitythis year:

Tighter control of policy and spend

Ongoing determination to seek further cost savings

Regionalisation of service

Stronger compliance has been a priority for most clients this year as a routeto better accountability and control of expenditure, and reduced securityrisk. Pre-trip authorisation and pre- and post-trip reporting, securityadvice, travel alerts, traveller tracking and care procedures are examples oftravel management services designed to address client needs in this area.Another area of focus has been control of suppliers, particularly airlines andhotels through the provision of improved data and information, enablingaccurate assessment of the performance of suppliers by spend, by quality ofservice, and during a crisis. Reducing overall travel expenditure remains a key objective for a majority ofHRG's clients and there is an ongoing pursuit of further incremental costsavings. As we have seen in the past under similar economic conditions,clients are increasingly willing to adopt tighter travel compliance controlsand procedures, often involving re-routing or lower-priced travel andaccommodation. Expenditure related to business meetings and events has often been poorlycontrolled and largely overlooked by clients in the past. This is now a higherpriority for our clients and through improved data HRG is now offering greatercontrol and lower costs to clients. Adoption of online self-booking of travel continues to grow, particularly forsimpler travel itineraries. Using either HRG's proprietary technologydelivered through HRG OnlineTM, or via third-party booking tools, clients areable to take advantage of lower booking fees thereby driving cost savings.Approximately 36% of all client travel bookings made during the year wereself-booked online by our clients, up from about 32% last year, with thegeographic spread also increasing. Many of our clients have long recognised the benefits, in terms of control andconsistency of outsourced service, of moving to a more centralised model. Weanticipated this trend several years ago and have steadily moved to a servicestructure based on fewer locations. While a number of multinational clientshave adopted a global, single-centre approach, a regional service configurationis increasingly regarded as optimal as it provides for differences inmanagement and supply while remaining consistent with a global strategy. At the half-year, we were pleased to record a growing interest by our clientsin integrated 'end-to-end' travel and expense management solutions. Thisfollows our move to full ownership of Spendvision last year. One of our largernew client wins secured during the year includes the provision by HRG of anintegrated travel and expense management tool and services. Coupled with the demand for data has been a desire for more insightful analysisand forecasting. HRG is increasingly taking an active role alongside clientsin the development of overall business plans linked to savings. As such,clients are seeking a more consultative approach to travel and expensemanagement, one where HRG is more often seen by its clients as a businesspartner rather than simply a service provider. A natural consequence is thegrowing trend of clients willing to share success and cost savings with HRG, adevelopment that we welcome. Our priority at all times across all parts of our global operations is toprovide the very best level of service to each of our clients. Of course, wedo lose clients from time to time. However, we continue to attract new clientsand extend our services to existing clients. Once again, our reward foroffering good value and a superior service has been a consistently high clientretention rate, and we won more business during the year than we lost. New clients to HRG during the year included Bayer, Centrica, Cricket Australia,the governing body of professional and amateur cricket in Australia, theGovernment of Canada, Hansel, the central procurement unit of the FinnishGovernment, KfW, NetApp, Pirelli and Unilever. Since the year end, Ernst &Young has indicated its intention to award HRG its travel contract in the EMEAregion. We also secured expanded contracts, in terms of both service andgeography, with existing clients such as ABB, the Australian Government, CGI,Holcim, Lloyds Banking Group, PPR/Kering, the UK Government and Volkswagen.Our pipeline of new business prospects remains very healthy. Notable amongstclients renewing their contracts with HRG were Abbott, BNP Paribas, DeutscheBank, GDF Suez, KPMG, Lloyds Banking Group, Man Group, Porsche, Procter &Gamble and Roche. While travel management remains at the core of HRG's global service offeringand robust business model, and fundamental to the Group's ability to generatecash, our ability to provide expense and data management services seamlesslylinked to our travel management services is showing welcome interest fromlarger clients and prospects. Corporate Travel Management Europe Years ended 31 March 2013 2012 Change Revenue £233.3m £250.7m -6.9% Operating profit £32.6m £29.0m +12.4%

Underlying operating profit (1) £35.6m £32.1m +10.9%

Underlying margin (1) 15.3% 12.8% +2.5 pp

(1) Before amortisation of acquired intangibles

Strong earnings performance in tough economic environment

Good growth in underlying margin despite revenue decline

Further rationalisation of service network to core hub locations

At constant currency, revenue was down 4.3% for the year, with client spending3% lower and travel activity down 1%. Underlying operating profit rose by £3.5m, notwithstanding a £0.6m negative impact from currency movements. Our UK business delivered another robust performance, helped by focused costcontrol and improved productivity measures in areas such as properties,management and support services. We began to see some signs of recovery duringthe second half of the year following a relatively flat year-on-yearperformance in the first half. Our travel management services in the area ofcorporate meetings, groups and events showed strong growth, benefiting fromadditional work for a number of large clients including the UK Government.Amongst other new business wins were Centrica, Clifford Chance and Unilever.As part of our ongoing drive to increase efficiency across our operations, wemade further investment in advanced service configuration techniques during theperiod, including telephony call-flow switching. The proportion of railtickets booked by HRG's UK business continues to grow and is now larger thanthat of air and hotel transactions, a result of a number of factors includingchanges to travel patterns and increasing business with the UK Government. In Germany, as industrial production has slowed, our clients have become moredependent on our experience and ability to offer innovative solutions offeringbetter value and incremental cost savings. There has been particular focus onreducing the cost of domestic and European travel. 'Simply HRG' wassuccessfully launched during the year, offering a range of services to smalland mid-sized companies. Our implementation work for DHL, a major new clientwon last year, was completed and we have begun trading with this client. Thisis the first significant global client consolidation on one contract fromGermany, with our proprietary products and services being provided to DHL in 48countries. Similar consolidation exercises continue for clients Volkswagen andBMW. As activity levels fell in Germany, significant cost reduction measureswere implemented in the second half of the year. In the Nordic region, particularly in Sweden, clients remain focused on costreduction. As elsewhere in the world, clients have been attracted to the lowercosts afforded by online self-booking of travel. Clients in the oil & gassector in Norway remained resilient during the year, and this is providingopportunities for HRG in the current year, whilst exciting new business winswere secured in Denmark and Finland, including Hansel, the central procurementunit of the Finnish Government. Activity in Switzerland was mixed with clients in the banking sector generallyslowing their activity and reducing spend, while our pharmaceutical clientsexpanded. Various cost-saving initiatives were implemented during the year andwe were able to realise good productivity gains from our investment in newtelephony systems. As the trend continues for clients to consolidate multi-country operations intosingle-point service hubs, we will continue to rationalise our service networkand cost base across Europe. Client adoption of online self-booking continued to grow during the year,accounting for 30% of all bookings made in the region, up from 27% last year. North America Years ended 31 March 2013 2012 Change Revenue £64.6m £78.0m -17.2% Operating profit £9.4m £11.1m -15.3%

Underlying operating profit (1) £10.1m £11.8m -14.4%

Underlying margin (1) 15.6% 15.1% +0.5 pp

(1) Before amortisation of acquired intangibles

Revenue and earnings impacted by planned transition in Canadian loyaltybusiness

Major contract award by the Government of Canada for integrated travel andexpense management; benefit to start to come through in second quarter ofcalendar 2014

Online self booking of travel up from 40% to 51%

Revenue was down by 17.8% at constant currency. Underlying operating profitreduced by £1.7m with no currency impact. Client spend was down by 14% in realterms and activity lower by 13%.

HRG operates two businesses in North America: (1) corporate travel management,and (2) loyalty, managing the redemption of credit card loyalty pointsprogrammes.

In our loyalty business in Canada, our planned transition to an onlineenvironment in cooperation with another supplier resulted in significantlylower fee income compared to prior year. We reduced headcount and madestructural changes aimed at increasing efficiency and protecting margin in thisoperation. Given the size of this business, which remains profitable, thistransition has materially affected the overall revenue and earnings of ourNorth American business for the year. Approximately 80% of the revenue declineand all of the fall in underlying operating profit in North America isattributable to the change in the structure of our Canadian loyalty business.Excluding our loyalty business in North America, transaction activity declinedby 3% while client travel spend fell by 1% at constant currency. Amongst several new clients we welcomed during the year, we are particularlypleased to have been awarded the contract for the overall travel management ofthe Government of Canada. The seven-year contract, which followed an extensivethree-year bidding process, includes all commercially available civilian travelrequirements for the Canadian Government including the provision of travelservices, an online booking tool, a payment card (supplied by BMO FinancialGroup), and online expense management via Spendvision. Implementation work forthis client has begun and it is anticipated that operations will commence inthe second quarter of calendar 2014. We secured additional business withseveral existing clients including CH2M Hill, Christies, Lloyds Banking Groupand Volkswagen. The North American travel market remains highly competitive with lower-pricetransactions accounting for a majority of domestic travel. As such,point-to-point travel between locations within this region is well suited toonline self booking of travel by clients, accounting for 51% of alltransactions compared to 40% last year. Asia Pacific Years ended 31 March 2013 2012 Change Revenue £26.8m £30.3m -11.6% Operating (loss)/profit (£0.3m) £0.9m -133.3%

Underlying operating (loss)/profit (1) (£0.3m) £0.9m -133.3%

Underlying margin (1) (1.1%) 3.0% -4.1 pp

(1) Before amortisation of acquired intangibles

Weaker performance in Australia as demand for natural resources slows

At constant currency, revenue was down by 11.6%, with client spend decreasingby 10% and travel activity by 16%. There was no currency impact on the £1.2mdecrease in underlying operating profit. Continuing concerns widely held by HRG's clients across Asia Pacific about theongoing issues in the Eurozone region were compounded during the second half ofthe year by a marked slowdown in demand for natural resources. Australianclients in the professional services, manufacturing and, in particular,government sectors have been hit hardest by these weaknesses, and levels ofclient activity and travel spend were well down on the prior year. Inresponse, we have moved swiftly to streamline our operations, reducingheadcount in line with forecast activity. In Singapore, the continuing uncertainties in the Eurozone region lead tosoftness amongst our banking clients with activity and spend down on prioryear. This was somewhat offset by strong growth in demand from pharmaceuticaland FMCG clients, although we took actions to reduce our operating costs. Aselsewhere in Asia Pacific, we saw a general tightening and enforcement ofclient travel compliance policies. Demand for our travel management servicesfor meetings, group travel and events began to increase towards the end of thefinancial year and may indicate a greater degree of business confidencereturning to the region. Our joint venture in mainland China continues to trade strongly as clientsappear largely immune to the challenges experienced in other parts of the worldwhile benefiting from stronger growth in the local economy. Our Hong Kongjoint venture faced similar challenges to those experienced by our Singaporebusiness, although we noted some recovery during the second half of the year.As associates, the results of these joint ventures are not included in thetable above. Online self-booking of travel in the Asia Pacific region increased furtherduring the year accounting for 50% of all bookings, up from 48% in the prioryear. Spendvision Years ended 31 March 2013 2012 Change Revenue £18.5m £15.2m +21.7% Operating profit £3.1m £2.1m +47.6%

Underlying operating profit (1) £3.4m £2.4m +41.7%

Underlying margin (1) 18.4% 15.8% +2.6 pp

(1) Before amortisation of acquired intangibles

Spendvision is a global technology company specialising in integrated travel,expense, payment and reporting solutions. Delivered direct and throughpartners across the banking, telecoms and travel sectors, Spendvision'sintelligent technology, services and support enable customers to achievefinancial benefits, visibility and control of their transactions.

Revenue was up 20.4% at constant currency, with good growth in direct businessand also with financial services clients. Underlying operating profit grew by£1.0m, with no impact from currency movements. Our increased investment indevelopment resource allowed us to benefit from the release of newfunctionality to our clients. This helped us grow revenue from our white labelproducts in the financial services sector by 31% year on year. Spendvision continues to work on integrating its transaction managementtechnology into the Group and providing clients with complete visibility andcontrol of total travel spend. Client interest in integrated 'end-to-end'travel and expense management continues to grow and we expect to release nextgeneration solutions in calendar 2014. This integration will offer Spendvisionsignificant opportunities to continue the positive growth seen this year. Technology As clients continue to seek ways of reducing travel and related expenditurewhile maximising the value of their spend, the use of technology in providingtime and cost-efficient solutions grows in importance. HRG's investment in itsown technology platform, the HRG Universal Super PlatformTM, continues andrecent client wins where the Group's proprietary products are being usedglobally have proved the value the platform brings to our business and to ourclients. We continue to enhance our product suite to ensure we stay ahead ofthe industry changes. Independence and flexibility remain key strengths ofHRG's technology strategy. During the first half of the financial year, we successfully reached a ten-yearagreement with a leading GDS provider to utilise our travel technology infuture products. We will see contributions in the form of royalties and fromdevelopment work through the life of the agreement.

The Government of Canada contract award demonstrates our ability to offer anintegrated travel and expense management solution.

At this year's Business Travel Show, we demonstrated the new design of HRGi-SuiteTM, our online portal offering clients access to both HRG andthird-party products, which reflects our strategy of responsive design toenable any device size, from phone to desktop, to be catered forautomatically. After successful customer pilots, we have begun the rollout ofHRG InsightTM, our new dynamic and flexible reporting tool, across our clientbase.

Additional Financial Disclosure

Revenue

Reported revenue reduced by 8.3% to £343.2m, comprised of a reduction of 6.7%at constant exchange rates and 1.6% through adverse currency movements.

Revenue per employee

Reported revenue per employee reduced by 1.0% from £69.3k to £68.6k. Atconstant exchange rates, this was a marginal increase of 0.7%.

Operating expenses

Reported operating expenses reduced by 9.9% to £298.4m.

Underlying operating expenses, which are before amortisation of acquiredintangibles, reduced by 10.0% to £294.4m, or by 8.3% at constant exchangerates. This 8.3% reduction is comprised of 7.7% for staff costs and areduction of 9.6% for other expenses, primarily reflecting lower staff numbersand a continuing focus on cost management.

Underlying operating profit

Underlying operating profit, which is before amortisation of acquiredintangibles, increased by 3.4% from £47.2m to £48.8m, or by 4.7% at constantexchange rates. Underlying operating profit margin increased from 12.6% to14.2%, inclusive of a 0.1% benefit from currency movements.

Net finance costs

Net finance costs increased by £1.4m to £11.3m, primarily reflecting anincreased IAS 19 pension charge as a result of a reduction in the discount rateapplied to the defined benefit pension schemes.

A revision to IAS 19 has been issued, which the Group will adopt from 1 April2013. If the revision had been applied this year, the pension charge wouldhave been £3.4m higher, and would be expected to increase by a further £0.2m inthe year to 31 March 2014. Taxation The tax charge for the year represents an overall effective tax rate (ETR) of28% of the reported profit before tax (2012: 29%). The current year ETRincludes a £0.3m charge relating to the impact on deferred tax assets of areduction in the UK corporation tax rate from 24% to 23% and a reduction in theSwedish corporation tax rate from 26.3% to 22%. An additional charge of £1.4mis reflected in the Consolidated Statement of Comprehensive Income in respectof deferred tax assets on pension liabilities resulting from the reduction inthe UK corporation tax rate. We anticipate an ETR of around 28% in futureyears.

Return on capital employed

Return on capital employed is calculated by dividing underlying operatingprofit plus net share of the results of associates and joint ventures byaverage net assets. Average net assets are based on each of the 12 month endsfor the financial year and exclude net debt, pension deficits and taxprovisions. Average net assets amounted to £222.0m (2012: £214.4m) comparedwith £204.4m at the year end (2012: £169.7m). The return for the year was22.3% (2012: 22.5%). Cash flow

Free cash outflow, which is the change in net debt before acquisitions anddisposals, Employee Benefits Trust purchases, dividends and the impact offoreign exchange movements on net debt balances, was £10.5m (2012: inflow of £19.6m).

Cash outflow in respect of working capital was £36.8m (2012: £11.6m), primarilydue to the planned withdrawal of the working capital management programme whichwas previously used to reduce working capital requirements at the end of eachhalf-year reporting period. The cash outflow related to interest was £6.4m(2012: £5.6m). Tax paid in cash was £5.7m (2012: £6.7m) and capitalexpenditure, which is primarily internal software development and officeequipment, was £9.7m (2012: £9.4m). Cash costs for pension deficit reductionwere £9.8m (2012: £6.0m). In addition to free cash flow, the other major cash flow items are related toshare purchases of £8.1m made by the Employee Benefits Trust (2012: £2.5m) and£6.2m of dividends paid to shareholders during the year (2012: £4.7m).

Funding and net debt

The principal banking facility is a £190m multi-currency revolving creditfacility (RCF) that is committed until November 2014. The RCF is used forloans, letters of credit and guarantees, with interest based on LIBOR/EURIBORplus a margin and costs. The Group has fixed interest on CHF25m until November2014 and on £20m until February 2017. In addition, the Group has a £30m fixedrate loan, repayable by 2018, and uncommitted facilities amounting to around £21m at the year end. The principal covenants continue to be measured semi-annually, at the end ofMarch and the end of September, against EBITDA. The covenants require that netdebt is less than 3.0 times EBITDA and net external interest is covered atleast 4.0 times by EBITDA, both on a rolling 12-month basis. The definition ofEBITDA for covenant purposes is not materially different from the definitionused in these financial statements. Net debt at year end increased by £26.0m to £87.0m and was equivalent to 1.4times EBITDA (2012: 1.1 times). This translates into gearing of 41.8% (2012:35%), or 106% (2012: 99%) including the pension deficits and related deferredtax assets.

Net external interest costs of £6.8m were covered 8.8 times by EBITDA (2012:8.8 times).

Pensions

The Group-wide pension deficits under IAS 19 have increased by £13.6m to £159.4m before tax.

The UK scheme deficit increased by £10.5m to £144.6m. The £27.1m increase inscheme assets was more than offset by a £37.6m increase in scheme liabilities,primarily driven by a lower discount rate adding £25.8m. For several years,the UK defined benefit scheme has been closed to new entrants and has cappedincreases in pensionable salary. We are in consultation with active members ofthe scheme on a proposal to close the scheme to future defined benefit accrualand replace it with a defined contribution scheme.

The overseas schemes are primarily in Germany and Switzerland, where theyear-end deficit increased by £3.1m to £14.8m.

At the year end, there was a deferred tax asset of £33.2m (2012: £32.2m)relating to the UK deficit and a liability of £0.2m (2012: £0.5m asset)relating to the overseas schemes. The change in UK deferred tax includes the1% reduction in the headline rate of UK corporation tax.

The Group will apply the revised version of IAS 19 with effect from 1 April2013, with comparatives restated. Whilst the net pension deficit would havebeen unchanged, the pre-tax profit would have been £3.4m lower, equating to a9% decrease in underlying EPS, if the revision had been applied this year.

Share price

The closing mid-market price at the year end was 57p (2012: 70.25p). Duringthe year, the price ranged from 46.5p to 72p per share.

Summary income statement Years ended 31 March 2013 2012 £m £m Revenue 343.2 374.2 EBITDA 60.1 57.9 Depreciation and amortisation (1) (11.3) (10.7) Underlying operating profit 48.8 47.2 Amortisation of acquired intangibles (4.0)

(4.1)

Share of associates and joint ventures 0.8 0.9 Net finance costs (11.3) (9.9) Profit before tax 34.3 34.1 Taxation (9.6) (9.9) Profit for the year 24.7 24.2 Summary balance sheet As at 31 March 2013 2012 £m £m Goodwill and other intangible assets 245.0

244.6

Property, plant, equipment and investments 12.7 14.9 Working capital (50.4) (86.9) Current tax liabilities (net) (5.2) (6.4) Deferred tax assets (net) 42.8 43.9 Net debt (87.0) (61.0) Pension liabilities (pre-tax) (159.4)

(145.8)

Provisions and other items (3.6) (2.9) Net (liabilities)/assets (5.1) 0.4 Summary cash flow statement Years ended 31 March 2013 2012 £m £m EBITDA 60.1 57.9 Working capital movements (36.8) (11.6) Interest paid (6.4) (5.6) Tax paid (5.7) (6.7) Capital expenditure (9.7) (9.4) Pension funding in excess of EBITDA charge (9.8) (6.0) Other movements (2.2) 1.0 Free cash (outflow)/inflow (10.5) 19.6 Acquisitions and disposals - (11.7) Employee Benefits Trust share purchases (8.1)

(2.5)

Dividends paid to external shareholders (6.2)

(4.7)

Currency translation and other (1.2)

(0.6)

(Increase)/decrease in net debt (26.0) 0.1

Excluding amortisation of acquired intangibles

Hogg Robinson Group plc Consolidated Income Statement

For the year ended 31 March 2013

Years ended 31 March Notes 2013 2012 £m £m Revenue 1 343.2 374.2 Operating expenses 2 (298.4) (331.1) Operating profit 44.8 43.1 Analysed as: Underlying operating profit 48.8 47.2 Amortisation of acquired intangibles 8 (4.0) (4.1) Operating profit 44.8 43.1 Share of results of associates and joint ventures 0.8 0.9 Finance income 4 0.2 0.3 Finance costs 4 (11.5) (10.2) Profit before tax 34.3 34.1 Income tax expense 5 (9.6) (9.9) Profit for the financial year 24.7 24.2 Profit attributable to: Owners of the Company 24.0 22.3 Non-controlling interests 13 0.7 1.9 24.7 24.2 Years ended 31 March 2013 2012 Earnings per share pence pence Basic 6 7.7 7.4 Diluted 6 7.3 7.0 Hogg Robinson Group plc

Consolidated Statement of Comprehensive Income

For the year ended 31 March 2013

Years ended 31 March Notes 2013 2012 £m £m Profit for the financial year 24.7 24.2 Other comprehensive income Currency translation differences 1.8

(2.9)

Amounts (debited)/credited to hedging reserve (1.3)

0.5

Actuarial loss on pension schemes 11 (20.4)

(35.3)

Deferred tax movement on pension liability 4.4

9.1

Deferred tax movement on pension liability attributable to impact of UK rate change (1.4) (2.8) Deferred tax movement on cumulative share-based incentives cost 0.4 0.6 Other comprehensive loss for the year, net of tax (16.5)

(30.8)

Total comprehensive income / (loss) for the year 8.2

(6.6)

Total comprehensive income / (loss) attributable to: Owners of the Company 7.5 (8.4) Non-controlling interests 0.7 1.8 8.2 (6.6) Hogg Robinson Group plc

Consolidated Balance Sheet

As at 31 March 2013 As at 31 March Notes 2013 2012 £m £m Non current assets Goodwill and other intangible assets 8 245.0

244.6

Property, plant and equipment 9 9.5

11.6

Investments accounted for using the equity method 3.2 3.3 Trade and other receivables 0.1 0.1 Financial assets - derivative financial instruments 0.7 - Deferred tax assets 43.2 45.0 301.7 304.6 Current assets Trade and other receivables 98.8 102.4 Financial assets - derivative financial instruments 0.2 0.5 Current tax assets 0.8 - Cash and cash equivalent assets 49.0 68.5 148.8 171.4 Total assets 1 450.5 476.0 Non current liabilities Financial liabilities - borrowings (134.9)

(126.8)

Financial liabilities - derivative financial instruments (0.8)

- Deferred tax liabilities (0.4) (1.1) Retirement benefit obligations 11 (159.4) (145.8) Provisions (3.4) (4.2) (298.9) (277.9) Current liabilities Financial liabilities - borrowings (0.3)

(0.3)

Financial liabilities - derivative financial instruments (0.1)

- Current tax liabilities (6.0) (6.4) Trade and other payables (149.3) (189.4) Provisions (1.0) (1.6) (156.7) (197.7) Total liabilities (455.6) (475.6) Net (liabilities) / assets (5.1) 0.4 Capital and reserves Share capital 3.2 3.2 Share premium 178.9 177.6 Other reserves 12 5.9 10.1 Retained earnings 12 (193.9) (192.0) Attributable to owners of Hogg Robinson Group plc (5.9)

(1.1)

Attributable to non-controlling interests 13 0.8 1.5 Total (deficit) / equity (5.1) 0.4 Hogg Robinson Group plc

Consolidated Statement of Changes in Equity

As at 31 March 2013 Attributable to equity holders of the Company Share Share Other Retained Non-controlling Total capital premium reserves earnings Total interests Equity £m £m £m £m £m £m £m Balance at 1 April 2011 3.1 172.2 14.0 (171.9) 17.4 3.6 21.0 Retained profit for the financial year - - - 22.3 22.3 1.9 24.2Other comprehensive income:Actuarial loss on pension schemes - - - (35.3) (35.3) - (35.3)Deferred tax movement on pension liability - - - 9.1 9.1 - 9.1Deferred tax movement on pension liabilityattributable to impact of UK rate change - - - (2.8) (2.8) - (2.8)Deferred tax movement on cumulativeshare-based incentives cost - - - 0.6 0.6 - 0.6Transfer from exchange reserve toretained earnings - - (0.9) 0.9 - - -Currency translation differences - - (2.8) - (2.8) (0.1) (2.9)Amounts credited to hedging reserve - - 0.5 - 0.5 - 0.5 Total comprehensive income - - (3.2) (5.2) (8.4) 1.8 (6.6) Transactions with owners:Dividends - - - (4.7) (4.7) (0.9) (5.6) Shares purchased by Employee Benefits Trust - - - (2.5) (2.5) - (2.5)Share-based incentives - charge for period - - 2.4 - 2.4 - 2.4New shares issued to satisfy share-basedincentives - 0.1 (0.1) - - - -New shares issued to satisfy sharesave scheme - 0.4 - - 0.4 - 0.4Transfer from share based incentive reserve toretained earnings - - (3.0) 3.0 - - -Acquisition of non-controlling interests 0.1 4.9 - (10.4) (5.4) (3.0) (8.4)Transaction costs - - - (0.3) (0.3) - (0.3) Total transactions with owners 0.1 5.4 (0.7) (14.9) (10.1) (3.9) (14.0) Balance at 31 March 2012 3.2 177.6 10.1 (192.0) (1.1) 1.5 0.4 Retained profit for the financial year - - - 24.0 24.0 0.7 24.7Other comprehensive income:Actuarial loss on pension schemes - - - (20.4) (20.4) - (20.4)Deferred tax movement on pension liability - - - 4.4 4.4 - 4.4Deferred tax movement on pension liabilityattributable to impact of UK rate change - - - (1.4) (1.4) - (1.4)Deferred tax movement on cumulativeshare-based incentives cost - - - 0.4 0.4 - 0.4Currency translation differences - - 1.8 - 1.8 - 1.8 Amounts credited to hedging reserve - - (1.3) - (1.3) - (1.3) Total comprehensive income - - 0.5 7.0 7.5 0.7 8.2 Transactions with owners:Dividends - - - (6.2) (6.2) (1.4) (7.6) Shares purchased by Employee Benefits Trust - - - (8.1) (8.1) - (8.1)Share-based incentives - charge for period - - 2.1 - 2.1 - 2.1New shares issued to satisfy share-basedincentives - 1.3 (1.3) - - - -Acquisition of non-controlling interests - - - (0.1) (0.1) - (0.1)Reclassification - - (5.5) 5.5 - - - Total transactions with owners - 1.3 (4.7) (8.9) (12.3) (1.4) (13.7) Balance at 31 March 2013 3.2 178.9 5.9 (193.9) (5.9) 0.8 (5.1) Hogg Robinson Group plc

Consolidated Cash Flow Statement

For the year ended 31 March 2013

Years ended 31 March Notes 2013 2012 £m £m Cash flows from operating activities Cash generated from operations 14 13.3 43.5 Interest paid (7.0) (6.9) Tax paid (5.7) (6.7) Cash flows from operating activities - net 0.6 29.9 Cash flows from investing activities Acquisition of subsidiaries, net of cash acquired

- (2.0)

Capital contribution in respect of equity accounted investments

- (1.6)

Disposals of associates, joint ventures and other investments

0.1 0.3

Purchase of property, plant and equipment

(2.1) (4.2)

Purchase and internal development of intangible assets 8

(7.6) (5.4)

Proceeds from sale of property, plant and equipment - 0.2 Interest received 0.2 0.3 Dividends received from associates and joint ventures 0.4 1.0 Cash flows from investing activities - net (9.0) (11.4) Cash flows from financing activities Repayment of borrowings (17.6) (22.7) New borrowings 21.7 20.5 Cash effect of currency swaps

(0.2) (0.1)

Purchase of own shares by the Employee Benefits Trust 12

(8.1) (2.5)

Acquisition of non-controlling interest

(0.1) (8.4)

Dividends paid to external shareholders

(6.2) (4.7)

Dividends paid to non-controlling interests (1.4) (0.9) Cash flows from financing activities - net (11.9) (18.8) Net decrease in cash and cash equivalents

(20.3) (0.3)

Cash and cash equivalents at beginning of the year 68.5 70.4 Exchange rate effects 0.8 (1.6) Cash and cash equivalents at end of the year 49.0 68.5 Cash and cash equivalent assets 49.0 68.5

Additional Financial Information

General information and basis of preparation

The financial information which comprises the Consolidated Income Statement,the Consolidated Statement of Comprehensive Income, the Consolidated BalanceSheet, the Consolidated Statement of Changes in Equity and the ConsolidatedCash Flow Statement and related notes does not constitute the Company'sConsolidated Financial Statements for the years ended 31 March 2013 and 2012,but is derived from those financial statements. The auditors have reported onthe Group's Consolidated Financial Statements for each of the years ended 31March 2013 and 31 March 2012. Their reports were unqualified, did not drawattention to any matters by way of emphasis and did not contain statementsunder s498(2) or (3) of Companies Act 2006 or equivalent precedinglegislation. The Consolidated Financial Statements for the year ended 31 March2012 have been delivered to the Registrar of Companies and the ConsolidatedFinancial Statements for the year ended 31 March 2013 will be filed with theregistrar in due course. The Consolidated Financial Statements have been prepared in compliance withInternational Financial Reporting Standards (IFRS) as endorsed and adopted bythe European Union, International Financial Reporting Standards InterpretationsCommittee (IFRS IC) interpretations and with those parts of the Companies Act2006 applicable to companies reporting under IFRS. The Consolidated FinancialStatements have been prepared under the historical cost convention, as modifiedby the use of valuations for certain financial instruments, share-based paymentincentives and retirement benefits.

Critical accounting policies and forward-looking statements

The preparation of the IFRS financial statements requires the use of estimatesand assumptions that affect the reported amounts of assets and liabilities atthe date of the Consolidated Financial Statements and the reported amounts ofrevenues and expenses during the year. The Operational Review should be read in conjunction with the auditedConsolidated Financial Statements. The discussions contain forward-lookingstatements that appear in a number of places and include statements regardingHRG's intentions, beliefs or current expectations concerning, among otherthings, results of operations, revenue, financial condition, liquidity, growth,strategies, new products and the markets in which HRG operates. Readers arecautioned that any such forward-looking statements are not guarantees of futureperformance and involve risks and uncertainties. Non-GAAP measures

Underlying operating profit is calculated as operating profit beforeamortisation of acquired intangibles and exceptional items

Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) iscalculated as operating profit before exceptional items before net financecosts, income taxes, depreciation, amortisation and impairment.

The Directors believe that the presentation of underlying operating profit andEBITDA enhances an investor's understanding of HRG's financial performance.However, underlying operating profit and EBITDA should not be considered inisolation or viewed as substitutes for retained profit, cash flow fromoperations or other measures of performance as defined by IFRS. Underlyingoperating profit and EBITDA as used in this announcement is not necessarilycomparable to other similarly titled captions of other companies due topotential inconsistencies in the method of calculation and are unaudited lineitems but are derived from audited financial information. The Directors useunderlying operating profit and EBITDA to assess HRG's operating performanceand to make decisions about allocating resources among various reportingsegments. 1 Segment information

The chief operating decision maker has been identified as the ExecutiveManagement Team, which reviews the Group's internal reporting in order toassess performance and allocate resources. The Executive Management Team hasdetermined the operating segments based on these reports.

The Executive Management Team considers the business from the perspective oftwo core activities, Corporate Travel Management, which is analysed into threedistinct geographic segments, and Spendvision. The Group's internal reportingprocesses do not distinguish between the numerous sources of income thatcomprise revenue for Corporate Travel Management. The performance of theoperating segments is assessed based on a measure of operating profit excludingitems of an exceptional nature. Interest income and expenditure and income taxexpense are not included in the result for each operating segment that isreviewed by the Executive Management Team. Other information provided, exceptas noted below, to the Executive Management Team is measured in a mannerconsistent with that in the financial statements. Total segment assets exclude cash and cash equivalent assets, current taxassets and deferred tax assets which are managed on a central basis. These areincluded as part of the reconciliation to total Consolidated Balance Sheetassets. Corporate Travel Management North Asia Europe America Pacific Total Spendvision Total £m £m £m £m £m £m Year ended 31 March 2013 Revenue from external customers 233.3 64.6 26.8 324.7 18.5 343.2

Underlying operating profit / (loss) 35.6 10.1 (0.3) 45.4 3.4 48.8

Amortisation of acquired intangibles (3.0) (0.7) - (3.7) (0.3) (4.0) Operating profit / (loss) 32.6 9.4 (0.3) 41.7 3.1 44.8 Underlying margin 15.3% 15.6% (1.1%) 14.0% 18.4% 14.2% Year ended 31 March 2012 Revenue from external customers 250.7 78.0 30.3 359.0 15.2 374.2 Underlying operating profit 32.1 11.8 0.9 44.8 2.4 47.2 Amortisation of acquired intangibles (3.1) (0.7) - (3.8) (0.3) (4.1) Operating profit 29.0 11.1 0.9 41.0 2.1 43.1 Underlying margin 12.8% 15.1% 3.0% 12.5% 15.8% 12.6%

There is no material inter-segment revenue.

External revenue from clients by origin (where the Group's operations arelocated) is not materially different from external revenue from clients bygeographical area (where the client is located) disclosed above.

A reconciliation of operating profit to total profit before income tax expenseis provided in the Consolidated Income Statement.

Corporate Travel Management North Asia Europe America Pacific Total Spendvision Total £m £m £m £m £m £m Total segment assets 31 March 2013 248.2 83.0 16.7 347.9 9.6 357.5 31 March 2012 251.8 85.6 16.4 353.8 8.7 362.5

Reported segments' assets are reconciled to total assets as follows:

31 March 31 March 2013 2012 £m £m Total segment assets 357.5 362.5 Cash and cash equivalent assets 49.0 68.5 Current tax assets 0.8 - Deferred tax assets 43.2 45.0 450.5 476.0

Capital expenditure by geographical location:

Corporate Travel Management North Asia Europe America Pacific Total Spendvision Total £m £m £m £m £m £m Capital expenditure 31 March 2013 6.9 0.2 0.5 7.6 2.7 10.3 31 March 2012 6.4 1.2 0.7 8.3 2.2 10.5 2 Operating expenses Years ended 31 March 2013 2012 £m £m Underlying operating expenses Staff costs (note 3) 203.8 225.3

Amortisation of intangible assets other than acquired intangible assets

6.4 5.4

Depreciation of property, plant and equipment

4.9 5.3

Auditors' remuneration for audit services

0.9 1.1

Operating lease rentals - buildings

13.1 14.4

Operating lease rentals - other assets

1.6 1.8

Loss on disposal of property, plant and equipment - 0.6 Property lease impairment - 0.6 Pension liability management programme costs

- 1.4

Currency translation differences 0.2 0.1 Other expenses 63.5 71.0 294.4 327.0 Amortisation of acquired intangibles: Amortisation of client relationships

3.7 3.8

Amortisation of other acquired intangible assets 0.3 0.3 4.0 4.1 Total operating expenses 298.4 331.1 3 Staff costs Years ended 31 March 2013 2012 £m £m Wages and salaries 170.3 188.4 Social security costs 20.3 22.0 Pension costs 9.6 10.2 Redundancy and termination costs 1.5 2.3 Share-based incentives 2.1 2.4 203.8 225.3 Pension costs comprise: Defined benefit schemes (note 11) 3.2 3.2 Defined contribution schemes 6.4 7.0 9.6 10.2 Years ended 31 March 2013 2012 number number

Average monthly number of staff employed by the Group including Key Management 5,001 5,398

4 Finance income and finance costs Years ended 31 March 2013 2012 £m £m Finance income - bank interest 0.2 0.3 Interest on bank overdrafts and loans

(6.0) (5.8)

Amortisation of issue costs on bank loans

(0.9) (0.9)

Interest on obligations under finance leases

- (0.1)

Expected return on pension scheme assets less interest cost on pension scheme liabilities (note 11) (3.6) (2.4) Other finance charges (0.8) (0.7) Interest on derivative financial instruments (0.2) (0.3) Foreign exchange gain 0.1 - Loss on financial instruments measured at fair value through profit and loss (0.1) - Finance costs (11.5) (10.2) Net finance costs (11.3) (9.9) 5 Income tax expense Years ended 31 March 2013 2012 £m £m Current tax: Tax on profits of the financial year 6.0

8.5

Adjustments in respect of previous years (0.9) (0.1) Total current tax 5.1 8.4 Deferred tax: Origination and reversal of temporary differences 4.3

3.1

Adjustments in respect of previous years (0.1) (1.9) Impact of UK rate change 0.3 0.3 Total deferred tax 4.5 1.5 Taxation charge 9.6 9.9 The tax charge is split as follows: Years ended 31 March 2013 2012 £m £m United Kingdom 4.4 2.4 Overseas 5.2 7.5 Taxation charge 9.6 9.9 Years ended 31 March 2013 2012 £m £m On underlying business 10.8 11.2 Tax on amortisation of acquired intangibles (1.2) (1.3) Taxation charge 9.6 9.9 6 Earnings per share Earnings per share attributable to equity holders of the Company were asfollows: Years ended 31 March 2013 2012 pence pence Earnings per share Basic 7.7 7.4 Diluted 7.3 7.0 Basic earnings per share (EPS) is calculated by dividing the earningsattributable to equity holders of the Company by the weighted average number ofOrdinary shares outstanding during the year, excluding those purchased by theCompany's Employee Benefits Trust. For diluted earnings per share, the weighted average number of Ordinary sharesin issue is adjusted to assume conversion of all dilutive potential Ordinaryshares. The following amounts have been used in the calculation of earnings per share: Years ended 31 March 2013 2012 £m £m Earnings for the purposes of earnings per share: Profit for the financial year 24.7 24.2 Less: amount attributable to non-controlling interests (0.7) (1.9) Total 24.0 22.3 Years ended 31 March 2013 2012 number number m m Weighted average number of Ordinary shares in issue Issued (for basic EPS) 312.1 303.3 Effect of dilutive potential Ordinary shares - share-based incentives 17.4 14.2 For diluted EPS 329.5 317.5 The weighted average number of issued Ordinary shares is higher in the yearended 31 March 2013 compared to the year ended 31 March 2012 due to the impactof the shares purchased by the Employee Benefits Trust, exercising of optionsunder the Sharesave Scheme and the shares issued on acquisition of SpendvisionHoldings Limited.

The Employee Benefits Trust has waived its rights to dividends.

Underlying earnings per share

Underlying earnings per share attributable to equity holders of the Companywere as follows: Years ended 31 March 2013 2012 pence pence Underlying earnings per share Basic 8.6 8.3 Diluted 8.1 7.9

Underlying earnings per share is calculated on the profit attributable toequity holders of the Company before amortisation of acquired intangibles andexceptional items after charging taxation associated with those profits.

Years ended 31 March 2013 2012 £m £m Earnings for the purposes of underlying earnings per share: Profit before tax from continuing operations 34.3

34.1

Add: amortisation of acquired intangibles 4.0 4.1 Underlying profit before tax 38.3

38.2

Underlying income tax expense (10.8) (11.2) Underlying profit for the financial year 27.5

27.0

Less: amounts attributable to non-controlling interests (0.7) (1.9) Total 26.8 25.1 7 Dividends per share The dividends to the Company's shareholders in the year ended 31 March 2013were: Years ended 31 March 2013 2012 £m £m Final dividend in respect of year ended 31 March 2012 1.4p per share (31 March 2011 1.0p per share) 4.3

2.9

Interim dividend in respect of year ended 31 March 2013 0.6p per share (31 March 2012 0.6p per share) 1.9 1.8 Total dividends to the Company's shareholders (note 12) 6.2 4.7 A final dividend in respect of the year ended 31 March 2013 of 1.5p perOrdinary share, amounting to a total dividend of £4,690,644 is to be proposedat the Annual General Meeting on 23 July 2013. The Employee Benefits Trust haswaived its rights to dividends. 8 Goodwill and other intangible assets Years ended 31 March 2013 2012 £m £m Goodwill 222.6 219.8 Other intangible assets 22.4 24.8 245.0 244.6 Computer software Externally Internally Client Goodwill acquired generated relationships Total £m £m £m £m £m Cost At 1 April 2011 247.4 17.0 22.6 38.1 325.1 Additions 2.0 0.8 4.6 - 7.4 Disposals - (0.2) - - (0.2) Exchange differences (3.2) (0.4) 0.1 (0.6) (4.1) At 31 March 2012 246.2 17.2 27.3 37.5 328.2 Additions - 1.7 5.9 - 7.6 Disposals - (0.4) - - (0.4) Exchange differences 2.8 0.3 0.6 0.6 4.3 At 31 March 2013 249.0 18.8 33.8 38.1 339.7 Accumulated amortisation At 1 April 2011 26.4 12.8 10.1 25.9 75.2 Amortisation charge for the year - 1.5 4.2 3.8 9.5 Disposals - (0.2) - - (0.2) Exchange differences - (0.3) (0.1) (0.5) (0.9) At 31 March 2012 26.4 13.8 14.2 29.2 83.6 Amortisation charge for the year - 1.6 5.1 3.7 10.4 Disposals - (0.4) - - (0.4) Exchange differences - 0.4 0.1 0.6 1.1 At 31 March 2013 26.4 15.4 19.4 33.5 94.7 Carrying amount At 1 April 2011 221.0 4.2 12.5 12.2 249.9 At 31 March 2012 219.8 3.4 13.1 8.3 244.6 At 31 March 2013 222.6 3.4 14.4 4.6 245.0 The amortisation charge for the year of £10.4m (2012: £9.5m) is comprised of £4.0m (2012: £4.1m) in respect of intangible assets acquired via businesscombinations and £6.4m (2012: £5.4m) which relates to amortisation of softwarepurchased and internally generated by existing businesses. Impairment of goodwill The recoverable amount used in the assessment of goodwill for all cashgenerating units comprises the higher of value in use and net realisablevalue. During the year the Group reviewed its discount rate and long termgrowth rates and these have been applied in the assessment. The value in usehas been calculated by discounting at 10% per annum (2012: 10% per annum) theanticipated pre-tax cash flows. The forecasts are prepared from managementinformation taking into account historical trading performance and anticipatedchanges in future market conditions. The detailed forecasts cover a period ofthree years from the balance sheet date; cash flows are projected beyond thatperiod based on market consensus for GDP growth of 2% (2012: 2%). Goodwill consists of the following amounts related to cash generating units ofthe Group: Years ended 31 March 2013 2012 £m £m Corporate Travel Management Europe 170.4 169.7 North America 45.6 43.6 Asia Pacific 1.1 1.0 217.1 214.3 Spendvision 5.5 5.5 222.6 219.8

The key assumptions used in the impairment testing were as follows:

* Discount rates * Rates of growth in cash generating units beyond 3 years

Discount rate

The discount rate reflects management's estimate of the post-tax cost ofcapital employed for the Group's cash generating units listed above. The samerate is applied to all cash generating units, and reflects the Group's fundingarrangements where all units have equal access to the Group's treasuryfunctions and borrowing lines to fund their operations. None of the Group'scash generating units demonstrate levels of risks that are significantlydifferent from those experienced by the Group generally, and all have similarfunding profiles and therefore the discount rate applied is deemed to bejustified.

Rates of growth in cash generating units beyond 3 years

Management have reviewed Corporate Travel industry forecasts and consider thatthe market consensus for GDP growth of 2% is reasonable for the purposes of theassessment of goodwill. Goodwill impairment

Management believes that no reasonable change in the key assumptions wouldcause any of the identified cash generating units to become impaired.

9 Property, plant and equipment Property Plant and equipment Total £m £m £m Cost At 1 April 2011 10.6 52.3 62.9 Additions for the year 0.4 4.7 5.1 Disposals for the year (0.2) (6.1) (6.3) Exchange differences (0.1) (0.9) (1.0) At 31 March 2012 10.7 50.0 60.7 Additions for the year 0.1 2.6 2.7 Disposals for the year (0.4) (0.8) (1.2) Exchange differences 0.2 0.7 0.9 At 31 March 2013 10.6 52.5 63.1 Accumulated depreciation At 1 April 2011 7.6 42.4 50.0 Depreciation charge for the year 0.8 4.5 5.3 Disposals for the year (0.2) (5.3) (5.5) Exchange differences (0.1) (0.6) (0.7) At 31 March 2012 8.1 41.0 49.1 Depreciation charge for the year 0.7 4.2 4.9 Disposals for the year (0.4) (0.8) (1.2) Exchange differences 0.2 0.6 0.8 At 31 March 2013 8.6 45.0 53.6 Carrying amount At 1 April 2011 3.0 9.9 12.9 At 31 March 2012 2.6 9.0 11.6 At 31 March 2013 2.0 7.5 9.5

Property is comprised of leasehold properties and leasehold improvements.Plant and equipment is comprised of IT and office equipment.

Years ended 31 March 2013 2012 £m £m Contractual commitments for the acquisition of: Property, plant and equipment 0.9 0.8

Carrying amount of property, plant and equipment held under finance leases

1.1 0.8 10 Net debt Years ended 31 March 2013 2012 £m £m Total financial liabilities - borrowings 135.2

127.1

Add back: Unamortised loan issue costs 1.5

2.4

Cash and cash equivalent assets (49.0) (68.5) Debt-related derivatives (0.7) - Net debt 87.0 61.0 Analysis by currency after currency swaps Years ended 31 March 2013 2012 £m £m Sterling 68.9 48.2 Euro (10.8) (17.1) Swiss Franc 19.2 11.2 Other European currencies (3.1) 1.9 Canadian Dollar 14.6 15.2 US Dollar (0.5) 1.9 Other currencies (1.3) (0.3) 87.0 61.0 11 Retirement benefit obligations

Defined benefit pension arrangements

The Group's principal defined benefit pension arrangement is the Hogg Robinson(1987) Pension Scheme (the UK Scheme). The UK Scheme was closed to new membersin March 2003, with benefits based on final pensionable salary. The increasein final pensionable salary since 31 March 2003 is limited to the lower of theincrease in the Retail Prices Index and 5% per annum. The latest actuarialvaluation of the scheme was carried out as at 31 March 2011 by an independentqualified actuary.

The Group also operates defined benefit schemes in Norway, Switzerland,Germany, Italy and France.

The following amounts have been included in the Consolidated Income Statementin respect of all defined benefit pension arrangements:

Years ended 31 March 2013 2012 £m £m Current service charge 4.0 3.8 Settlement gain - (0.5) Curtailment gain (0.8) (0.1) Charge to operating profit 3.2 3.2 Interest cost on pension scheme liabilities 17.9

19.3

Expected return on pension scheme assets (14.3) (16.9) Charge to finance costs 3.6 2.4 Total charge to Consolidated Income Statement 6.8 5.6

The following amounts have been recognised as movements in equity:

Years ended 31 March 2013 2012 £m £m Actual return on scheme assets

25.4 9.9

Less: expected return on scheme assets (14.3) (16.9) 11.1 (7.0) Experience gains and losses arising on scheme liabilities

(0.2) (0.7)

Changes in assumptions underlying the present value of scheme liabilities (31.3) (27.6) (20.4) (35.3) Exchange rate movement (0.2) 0.6 Movement in the year (20.6) (34.7) Cumulative amount recognised in the Consolidated Statement of Comprehensive Income since the transition date to IFRS, 1 April 2003 (114.8) (94.2)

The key assumptions used for the UK Scheme were:

Years ended 31 March 2013 2012 2011 Rate of increase in final pensionable salary 3.30% 3.20%

3.40%

Rate of increase in pensions in payment - accrued before 1999 5.00% 5.00%

5.00%

Rate of increase in pensions in payment - accrued after 1999 3.30% 3.10%

3.40% Discount rate 4.70% 5.00% 5.50% Inflation - RPI 3.30% 3.20% 3.40% Inflation - CPI 2.60% 2.70% 2.90% Expected rate of return on plan assets: Equity instruments 7.50% 7.25% 8.00% Debt instruments 4.60% 4.70% 4.50% Property 7.50% 7.25% 8.00% Other assets 2.60% 4.70% 4.90%

The assumptions for the schemes in Norway, Switzerland, Germany, Italy andFrance do not produce materially different results from the assumptions usedfor the UK Scheme.

The expected rates of return have been set taking into account current marketreturns for each category of asset at the balance sheet date.

The net present value of the defined benefit obligations of the UK Scheme issensitive to both the actuarial assumptions used and to market conditions. Ifthe discount rate assumption was 0.5% lower, the obligations would be expectedto increase by £42.4m and if it was 0.5% higher, they would be expected todecrease by £36.6m. If the inflation assumption was 0.5% lower, the obligationswould be expected to decrease by £17.9m and if it was 0.5% higher, they wouldbe expected to increase by £16.9m. The mortality assumptions for the UK Scheme are based on SAPS / CM1(2010)tables with 'medium cohort' projections and a 1% underpin in the rate of futureimprovements in mortality. Life expectancy at the age of 65 is assumed to be: Years ended 31 March 2013 2012 Current Pensioners Male 23.6 23.5 Female 25.7 25.7 Future retirements Male 25.1 25.0 Female 27.4 27.3

The UK liability is based on the assumption that active and deferred memberswill take 25% of the value of their pension as a lump sum on retirement.

The net present value of the defined benefit obligations of the UK Scheme aresensitive to the life expectancy assumption. If there was an increase of oneyear to this assumption the obligations would be expected to increase by £11.8m.

The provision included in the Consolidated Balance Sheet arising fromobligations in respect of defined benefit schemes is as follows:

Years ended 31 March 2013 2012 £m £m Present value of defined benefit obligations Unfunded scheme 11.9 10.1 Wholly or partly funded schemes 411.5 371.0 423.4 381.1 Fair value of scheme assets (264.0) (235.3) 159.4 145.8 The net present value of defined benefit obligations has moved as follows: Years ended 31 March 2013 2012 £m £m At beginning of year 381.1 369.9 Current service cost 4.0 3.8 Settlement gain - (0.5) Curtailment gain (0.8) (0.1) Interest cost 17.9 19.3 Contributions by plan participants 1.5 1.6 Actuarial losses 31.5 28.3 Foreign currency exchange changes 0.3 0.2 Benefits paid (12.1) (41.4) At end of year 423.4 381.1

The fair value of scheme assets has moved as follows:

Years ended 31 March 2013 2012 £m £m At beginning of year 235.3 255.2 Expected returns on plan assets 14.3 16.9 Actuarial gains/(losses) 11.1 (7.0) Foreign currency exchange changes 0.1 0.8 Contributions by the employer 13.8 9.2 Contributions by plan participants 1.5 1.6 Benefits paid (12.1) (41.4) At end of year 264.0 235.3

The assets held in defined benefit schemes were as follows:

Years ended 31 March 2013 2012 £m £m Equity instruments 131.5 121.3 Debt instruments 83.5 78.1 Property 34.9 37.8 Other assets 14.1 24.9 Liability management exercise - (26.8) 264.0 235.3 In the year to March 2012, deferred members of the UK scheme were offered theopportunity to transfer their accrued benefits out of the UK scheme toalternative pension providers on enhanced terms. The programme reduced theMarch 2012 assets and liabilities by approximately £33m, of which £26.8m wassettled in the year to 31 March 2013.

None of the plan assets are represented by financial instruments of the Group.None of the plan assets are occupied or used by the Group.

For several years, the UK defined benefit scheme has been closed to newentrants and has capped increases in pensionable salary. Following the mostrecent triennial valuation, effective April 2011, the Trustees agreed cashcontributions amounting to 14.8% of pensionable salaries, plus deficitreduction payments totalling £7.9m for the year ending 31 March 2014.

The obligations and assets are split as follows:

Years ended 31 March 2013 2013 2013 2012 2012 2012 UK Overseas Total UK Overseas Total £m £m £m £m £m £m Defined benefit obligations (370.9) (52.5) (423.4) (333.3) (47.8) (381.1) Fair value of plan assets 226.3 37.7 264.0 199.2 36.1 235.3 Deficit (144.6) (14.8) (159.4) (134.1) (11.7) (145.8) Five year experience Years ended 31 March 2013 2012 2011 2010 2009 £m £m £m £m £m Defined benefit obligations (423.4) (381.1) (369.9) (360.3) (263.0) Fair value of plan assets 264.0 235.3 255.2 233.9 197.7 Deficit (159.4) (145.8) (114.7) (126.4) (65.3) Experience gains/(losses) on plan liabilities (0.2) (0.7) 1.9 1.9 2.5 on plan assets 11.1 (7.0) (0.4) 21.1 (46.3)

Pension funding in excess of the charge to operating profit is shown in theConsolidated Cash Flow Statement as follows:

Years ended 31 March 2013 2012 £m £m Contributions less service cost (note 14) (9.8) (6.0) 12 Reserves Retained earnings Years ended 31 March 2013 2012 £m £m At 1 April (192.0) (171.9) Retained profit for the financial year 24.7 24.2 Dividends (note 7) (6.2) (4.7) Non-controlling interests (0.7) (1.9) Acquisition of non-controlling interests (0.1) (10.4) Transaction costs - (0.3) Shares purchased by Employee Benefits Trust

(8.1) (2.5)

Actuarial loss on pension schemes

(20.4) (35.3)

Deferred tax movement on pension liability and share-based incentives

3.4 6.9

Transfer to retained earnings from exchange reserve

- 0.9

Transfer to retained earnings from share-based incentives reserve

5.5 3.0 At 31 March (193.9) (192.0) Other reserves

Share-based Exchange Hedging Total other

incentives reserve reserve reserves £m £m £m £m Balance at 1 April 2011 5.4 8.6 - 14.0 Other comprehensive income: Currency translation differences

- (2.8) - (2.8)

Fair value gain on cashflow hedges

- - 0.5 0.5

Transfer from exchange reserve to retained earnings - (0.9) - (0.9) Transactions with owners:

Transfer from share-based incentives reserve to retained earnings (3.0) - - (3.0)

Share-based incentives - charge for period

2.4 - - 2.4

New shares issued to satisfy share-based incentives (0.1) - - (0.1) Balance at 31 March 2012 4.7 4.9 0.5 10.1 Other comprehensive income: Fair value movement on cashflow hedges - - (0.6) (0.6) Reclassification - 0.7 (0.7) - Currency translation differences - 1.1 - 1.1 Transactions with owners: New shares issued to satisfy share-based incentives

(1.3) - - (1.3)

Share-based incentives - charge for period

2.1 - - 2.1

Reclassification to P&L reserve (5.5) - - (5.5) Balance at 31 March 2013 - 6.7 (0.8) 5.9

During the year the balance of the share-based incentives reserve wastransferred to retained earnings

13 Non-controlling interests

Years ended 31 March 2013 2012 £m £m At 1 April 1.5 3.6 Exchange differences - (0.1) Dividends paid (1.4) (0.9) Share of profit after tax 0.7 1.9 Acquisition of non-controlling interest - (3.0) At 31 March 0.8 1.5 14 Cash generated from operations Years ended 31 March 2013 2012 £m £m Profit before tax from continuing operations 34.3 34.1 Adjustments for: Depreciation and amortisation (note 8 and 9) 15.3 14.8 Net increase in provisions 1.4 2.5 Share of results of associates and joint ventures (0.8) (0.9) Net finance costs (note 4) 11.3 9.9 Pension curtailment credit (0.8) - Other timing differences 2.1 3.0 62.8 63.4 Cash expenditure charged to provisions

(2.9) (2.3)

Change in trade and other receivables

5.2 9.7

Change in trade and other payables

(42.0) (21.3)

Pension funding in excess of charge to operating profit (note 11) (9.8) (6.0) Cash generated from operations

13.3 43.5