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SkiStar

Earnings Release Oct 4, 2022

3110_10-k_2022-10-04_0aeb8b42-301e-48b2-ac2f-7814eb0cea0d.pdf

Earnings Release

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Record Full-Year Result – Strong Season Expected

SUMMARY, SEK MILLION 3 MONTHS
1 Jun-31 Aug
FULL YEAR
1 Sep-31 Aug
2021/22 2020/21 2021/22 2020/21
Revenue 224 184 4,092 2,689
Operating income 227 239 4,118 2,759
Profit/loss before tax -269 -5 866 246
Profit/loss after tax -212 80 665 234
Earnings per share, SEK -2.70 0.87 8.50 3.04
Cash flow from operating activities -56 41 1,238 699
Operating margin, % neg 6 21 10
Equity/assets ratio, % 42 40 42 40
Equity/assets ratio, % excluding IFRS 16 57 51 57 51

FOURTH QUARTER

  • Net sales for the fourth quarter were SEK 224 (184) million, an increase of SEK 40 million (22 percent) compared with the previous year.
  • Profit/loss after tax for the fourth quarter was SEK -212 (80) million, a decline of SEK 292 million (364 percent) compared with the previous year, which was positively affected by a capital gain of SEK 198 million on property transactions.
  • Earnings per share amounted to SEK -2.70 (-0.87).

FULL YEAR

  • Net sales for the full year were SEK 4,092 (2,689) million, an increase of SEK 1,404 million (52 percent) compared with the previous year.
  • Profit after tax was SEK 665 (234) million, an increase of SEK 431 million (184 percent) compared with the previous year.
  • Earnings per share amounted to SEK 8.50 (3.04), an increase of 180 percent.
  • The Board recommends a dividend that is twice as much as the previous year, i.e. SEK 3.00 (1.50) per share, corresponding to a total of SEK 235 (118) million.

SIGNIFICANT EVENTS DURING AND AFTER THE PERIOD

  • Strong demand for mountain holidays all year round and the easing of travel restrictions contributed to increased revenue from core operations during the financial year. All destinations had record visitor numbers during the winter season, resulting in both a higher number of skier days and record sales of all products related to alpine skiing, such as SkiPass, ski rental and sporting goods outlet sales.
  • Bookings for the winter season are seven percent higher than at the same point before 2019/20, i.e. the season before the pandemic.
  • SkiStar is investing over SEK 600 million in the core business for 2022/23 in order to increase the attractiveness of the Company's resorts and to meet continuing strong demand from guests. In addition to operational investments, SkiStar has acquired an area of land totalling 400 hectares in Vemdalen which is ideal for continuing development of the popular Vemdalen mountains.

Further information is available from: Stefan Sjöstrand, CEO tel +46 (0)280 841 60 Anders Örnulf, CFO tel +46 (0)280 841 60

COMMENT FROM THE CEO

Record Full-Year Result – Strong Season Expected

In spring 2020, we adopted an updated strategy with a focus on Scandinavia and mountain tourism all year round. This proved to be a successful decision. As we close the 2021/22 financial year, the transformation has helped us to become a stronger and more prosperous company with good liquidity, a stronger balance sheet, better profitability, more satisfied guests, great employees and a stronger brand than before the pandemic.

Our full-year result is the best in the Company's history. Sales and earnings increased in all business areas and we have reported a profit before tax of SEK 866 million, SEK 619 million better than in the previous year. This gives us a strong cash flow and the conditions to continue building a successful SkiStar in the coming years with more initiatives and investments for the future.

The repositioning as the leading holiday organiser for Scandinavia has gone better and faster than expected, mainly due to strong momentum in business development and digitalisation with faster and more efficient processes. Digital SkiPass purchases currently account for 75 percent of total SkiPass sales. Our digital platforms are the basis of our business model and the main sales channel, with skistar.com as the hub, to which we had 28 million visits during the year.

Our all-year-round focus contributed to both increased revenue in the fourth quarter and also 21 percent new guests, providing future growth potential in winter as well. With our six destinations, including the new Stockholm Hammarbybacken, we broke records during the period – for example, SkiStar Mountain Coaster with over 40,000 rides in just two months, which is unique. It is also home to Sweden's first modern alpine ski arena on artificial turf –SkiStar SummerSki – which opened in early September.

The sale of our hotel properties and certain land assets to the jointly-owned company Skiab Invest AB has proved to be a success, enabling a stronger balance sheet, clear hotel operation within SkiStar and faster exploitation at our destinations.

Unlike the situation for many other players, our sports shop business continues to show strong growth both online at skistarshop.com (+25%) and in our physical stores (+50%).

We remain committed to our sustainability goal of reducing our carbon footprint by 50 percent by 2030, and switched during the year to running our snow groomer machines exclusively on HVO100 (renewable diesel) in Norway too, despite increased fuel prices. As

an important step towards our goal of electrification, we have electric snowmobiles in operation this year and are working on the renewable snow groomer machines of the future. We have taken long-term measures to keep our electricity contracts at reasonable levels through portfolio management, creating security both in terms of costs and for our guests, as we have not been forced to make large price adjustments.

Getting more people moving is an important part of our sustainability work. With the 37-percent increase in the number of skier days and activities during the year, we are on track to achieve the target of 7 million by 2030.

SkiStar is continuing to invest in the future. In 2022/23, we will invest over SEK 600 million in better and more modern mountain resorts, digital development and continued year-round operation. This includes an investment in new snow systems in order to safeguard our core business of alpine skiing in the long term. We are also extremely pleased with our recent investment in a six-chair lift - Stjärnliften in Åre - which will significantly increase the capacity of the skiing area, an important step in the development of our second-largest and highly popular destination Åre. Our recent acquisition of Klyftvallen, an area of 400 hectares, is ideal for both alpine skiing and summer activities in the attractive Skalspasset at Vemdalsskalet. It also provides exploitation opportunities for highly attractive mountain accommodation as well as many other exciting development projects.

We plan to open the 2022/23 winter season as normal and, despite the instability in the outside world, we can report that bookings (expressed as the number of overnight stays booked through SkiStar's accommodation agency) are +7 percent compared with the same period before the 2019/20 winter season, which is the last comparable winter season before the pandemic. We are particularly pleased that our Danish and Swedish guests are back in force in Norway.

The future looks bright, with a continuation of the very strong demand for active holidays in the Scandinavian mountains, where we create memorable mountain experiences for our guests. I look forward with great confidence to a long winter season at all our destinations with a focus on our crucial core product and the Company's DNA alpine skiing.

Stefan Sjöstrand, CEO

Bookings before the 2022/23 winter season are +7 percent compared with the same period " before the pandemic.

REVENUE AND EARNINGS

Fourth Quarter

The Group's revenue for the fourth quarter amounted to SEK 227 (239) million, a decline of 5 percent from the previous year. The decline is mainly due to government support of approximately SEK 44 million in Austria, which was paid inte fourth quarter of the previous year. Changes in the NOK/SEK exchange rate had a positive effect of SEK 4 million on revenue. The Group's operating profit/loss for the fourth quarter was SEK -265 (19) million. The main reasons for the decline are a capital gain on property transactions in the previous year, the loss reported by hotel operations and increased costs not directly related to the quarter, such as repairs and advertising costs. Changes in the NOK/SEK exchange rate had a negative effect of SEK 5 million on operating profit for the quarter. Profit from investments in associates and joint ventures increased to SEK 25 (16) million. The increase from the same quarter in the previous year is largely due to increased activity in the associate Skiab Invest AB. Net financial items for the quarter improved by SEK 21 million to SEK -3 (-24) million. Changes in the value of interest rate derivatives amounted to SEK 23 (-5) million. Interest expenses amounted to SEK -19 (-19) million, including lease-related interest of SEK 10 (5) million under IFRS 16. Exchange losses amounted to SEK -10 (-7) million. Other finance costs amounted to SEK -10 (-5) million.

The Group's profit/loss after tax amounted to SEK -212 (80) million, a decline of SEK 292 million (364 percent). Revenue (including internal revenue) from Operation of Mountain Resorts amounted to SEK 201 (205) million, with an operating profit/loss of SEK -233 (-184) million. Revenue from Property Development and Exploitation amounted to SEK 14 (14) million, with a profit of SEK 3 (7) million. Profit from exploitation activities related to plot and land sales and the sale of shares in tenant-owner associations and Vacation Club for the quarter amounted to SEK -5 (4) million. Other Property Development and Exploitation activities are primarily related to rental of accommodation to the Operation of Mountain Resorts segment and shares from associates that rent out accommodation. From 1 July 2021, SkiStar conducts operations in a third segment: Operation of Hotels. Revenue from Operation of Hotels for the fourth quarter amounted to SEK 38 (30) million, with a profit/loss of SEK -42 (-5) million.

Full Year

The Group's revenue for the full year amounted to SEK 4,118 (2,759) million, an increase of 49 percent from the previous year. Changes in the NOK/SEK and EUR/SEK exchange rates had a positive effect of SEK 65 million on revenue. The Group's operating profit for the period amounted to SEK 884 (296) million. Changes in the NOK/SEK and EUR/SEK exchange rates for the period had a positive effect of SEK 9 million on operating profit. Profit from investments in associates and joint ventures increased by SEK 27 million to SEK 65 (38) million. The increase is due to expanded operations at Skiab Invest AB, where SkiStar is the main tenant. Net financial items for the period improved by SEK 31 million to SEK -18 (-49) million, including SEK 71 million related to changes in the value of interest rate derivatives, amounting to SEK 58.1 (-15.4) million and interest expenses amounted to SEK 79 (54) million, including lease-related interest of SEK 38 (16) million under IFRS 16. The Group's profit after tax for the period was SEK 665 (234) million, an increase of SEK 431 million (184 percent). Revenue (including internal revenue) from Operation of Mountain Resorts for the period amounted to SEK 3,719 (2,546) million, with a profit of SEK 790 (84) million. Revenue from Property Development and Exploitation for the period amounted to SEK 135 (237) million, with a profit of SEK 92 (32) million.

Profit from exploitation activities related to plot and land sales and the sale of shares in tenant-owner associations and Vacation Club for the period amounted to SEK 56 (68) million, including SEK 0 (39) million

through associates. Other Property Development and Exploitation activities are primarily related to rental of accommodation to the Operation of Mountain Resorts segment. From 1 July 2021, SkiStar conducts operations in a third segment: Operation of Hotels. Revenue from Operation of Hotels for the period amounted to SEK 372 (38) million, with a profit/loss of SEK -24 (-28) million.

Disposal of subsidiaries

During the financial year, SkiStar sold all its shares in St. Johann to St. Johanner Bergbahnen Beteiligungs GmbH, instead of to the previously stated buyer, Schultz Gruppe, due to a decision in the approval process on which the transaction had been conditional. SkiStar received a repayment of EUR 15 million for shareholder loans totalling EUR 19.5 million paid to St. Johann and a cash purchase consideration of EUR 2. The transaction had a positive effect of SEK 16 million on SkiStar's operating profit, which was related to the reversal of previous impairment.

Seasonal effects

SkiStar's operations are subject to significant seasonal variations. Most revenue and earnings are generated in the second and third quarters. The number of days off during Christmas and New Year, and whether Easter falls early or late, also bring variations in earnings. Over half of the revenue is paid in advance.

QUARTERLY VALUES, SEK MILLION

2021/22 2020/21 2019/20
Q4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1
Revenue 224 1,536 2,178 155 184 1,023 1,328 154 162 580 1,931 121
Operating profit/loss -265 547 936 -334 19 126 444 -292 -127 15 833 -326

FINANCIAL POSITION, TAXES AND INVESTMENTS ETC.

Cash flow

Cash flow from operating activities after changes in working capital during the year amounted to SEK 1,238 (699) million. The improvement was largely due to increased operating profit. Cash flow from investing activities amounted to SEK -800 (-630) million. The change from the previous year is mainly related to a higher rate of investment. Acquisitions of subsidiaries generated a cash flow item of SEK -34 (-119) million. Cash flow from financing activities amounted to SEK -442 (-74) million, with the change mainly due to loan repayments and the year's dividend payment.

Liquidity and financing

The Group's cash and cash equivalents amounted to SEK 25 (27) million on 31 August. Unused credit facilities amounted to SEK 657 (675) million. Interest-bearing liabilities amounted to SEK 3,625 (3,191) million, an increase of SEK 434 million from the previous year. The increase is largely due to a long-term lease liability arising from the signing of a long-term lease with Skiab Invest AB, the owner of the hotel properties. The average interest rate during the period was 2.35 (2.21) percent. Net financial debt amounted to SEK 3,550 (3,114) million on 31 August, an increase of SEK 436 million from the previous year. Net financial debt excluding IFRS 16 was SEK 1,559 (1,675) million. The equity/assets ratio increased to 42 (40) percent. The equity/assets ratio excluding IFRS 16 was 57 (51) percent.

Tax

Tax expense for the period amounted to SEK 201 (12) million and was mainly attributable to current tax.

Investments

Investments for the period amounted to SEK 787 (632) million (gross) and SEK 782 (628) million (net). The difference between gross and net is the divestment of financial assets and property, plant and equipment. Depreciation and amortisation for the same period amounted to SEK 429 (536) million. The difference was mainly due to the previous year's depreciation and amortisation being affected by impairment of shares in subsidiaries.

Personnel

The number of employees was 1,499 (1,196), an increase of 303 from the previous year. The increase is mainly due to expanded areas of activity in the hotel segment and the fact that all destinations have been able to stay open throughout the season.

Related-party transactions

Mats and Fredrik Paulsson together with their family and companies are the principal owners of SkiStar, with 47 percent of the votes and 24 percent of the capital at 31 August 2022, and they are also the principal owners of Peab, with which SkiStar has a business relationship. Purchases from Peab during the financial year amounted to SEK 84 (269) million. The outstanding liability to Peab was SEK 6 (15) million. Sales to Peab amounted to SEK 2 (461) million and the outstanding receivable was SEK 0 (95) million.

Purchases from associates during the financial year amounted to SEK 221 (57) million and sales to associates amounted to SEK 7 (18) million. Net receivables from associates totalled SEK 21 (24) million, SEK 20 (22) million of which related to loans to associates. In addition to the Group's related-party transactions, the Parent Company has transactions with subsidiaries. Disclosures of related-party transactions and a description of their nature can be found in note 36 of the 2020/21 annual report.

Parent company

Net sales for the Parent Company totalled SEK 2,875 (2,241) million during the financial year. Net investments amounted to SEK 570 (206) million.

Looking ahead to 2022/23

The staycation trend continues in all markets in Scandinavia, which is clearly indicated by demand. Despite instability in the outside world, bookings are + 7 percent compared with the same period before the 2019/20 winter season, which is the last comparable winter season before the pandemic. Compared with the same period in the previous year, when society was affected by travel and other Covid-related restrictions, bookings for 2022/23 are somewhat weaker at -10 percent. Bookings compared with the previous year are also affected by a negative calendar effect during the Christmas/New Year period. Given the continuing keen interest in alpine skiing and mountain holidays in Scandinavia all year round, we look forward to the coming seasons with cautious optimism.

As previously communicated, operational investments planned for the current financial year total SEK 622 million, including SEK 174 million for two chair lifts in Åre, where a major initiative to modernise and windproof SkiStar Åre is in progress. The remaining SEK 448 million is being invested in extensive upgrades, new summer activities and modernisation with a particular focus on snow capacity.

SUSTAINABILITY

Sustainability and responsible entrepreneurship are an integral part of SkiStar's strategy, business model, governance and culture. SkiStar's strategic framework is built on three foundations: safe & secure, sustainability and employees & culture. These foundations permeate everything we do and are a cornerstone of our business. SkiStar's sustainability focus areas are Activity & Recreation, Ecosystem & Impact and Dialogue & Interaction.

News during the Quarter/Full Year

Activity & Recreation

• In the previous financial year, SkiStar adopted the goal of achieving 7 million skier days and activities (6.4 million skier days and 600,000 activities) per year by 2030. The outcome for the 2021/22 financial year was over 6 (4.4) million skier days and over 239,000 activities, including 32,000 at the new Stockholm Hammarbybacken.

• To encourage more activity, the SkiStar Olympic Youth Camp was launched in summer 2022 in Sälen. The aim of the camp was to contribute to the well-being and endurance of young athletes, focusing on sustainable sport, mental health and the joy of movement together. Just under 60 young people participated in the activity.

Ecosystem & Impact

• During the year, SkiStar reorganised operations in Norway so that all snow groomer machines run on the renewable fuel HVO100. This will have a major impact on SkiStar's direct climate emissions. Calculations will be reported in the annual report.

• Water consumption in operations during the year amounted to just over 5 (4.5) million m3, which is an increase of ten percent compared with the previous year. The increase was due to increased production of artificial snow due to less natural snow.

• During the fourth quarter, SkiStar has worked on finalising data before submitting the Company's climate targets for validation by the Science Based Targets initiative (SBTi). The aim is to ensure that SkiStar's efforts to reduce its climate impact are sufficient and in line with what is required to achieve the Paris Agreement goal of limiting global warming.

Dialogue & Interaction

• Every year, SkiStar collects and donates the money that guests at the Company's Swedish destinations have raised by recycling their PET bottles with the Company. During the 2021/22 winter season, over 671,100 (450,000) PET bottles were recycled, generating over SEK 619,600 (420,000). This year's collection goes to The Keep Sweden Tidy Foundation to support the joint project Keep the Mountain Tidy.

About the sustainability section of this Year-End Report

This is a quarterly follow-up of SkiStar's sustainability work. The starting point is SkiStar's annual sustainability report. The sustainability section has not been prepared in accordance with the provisions of Chapter 6, Section 1, of the Annual Accounts Act or the GRI guidelines and does not therefore address all issues. An overview of the sustainability initiatives is published annually in the sustainability report. Read more at: https:// www.skistar.com/en/corporate/sustainability/.

OTHER INFORMATION

The SkiStar share

The number of shareholders was 57,317 on 31 August 2022, which is an increase of 5,474 (eleven percent) since 31 August 2021. SkiStar's class B shares are listed on the Nasdaq Stockholm, Mid Cap. The number of shares was 78,376,056, of which 74,728,056 are class B shares. The closing price of the SkiStar share was SEK 137.40 on 31 August 2022.

Regulatory press releases during the quarter and after the end of the period

  • 10/06/2022 Invitation to conference call with web presentation of SkiStar AB's interim report for the third quarter 2021/22.
  • 17/06/2022 SkiStar interim report September 2021-May 2022.
  • 27/09/2022 Invitation to conference call with web presentation of SkiStar AB's year-end report for 2021/22.

The press releases are available in full at www.skistar.com/en/corporate.

Proposed appropriation of profits

The Board proposes that the AGM adopt a dividend that is twice as much as the previous year, i.e. SEK 3.00 (1.50) per share, totalling SEK 235 (118) million. The dividend corresponds to 36 (50) percent of the Group's profit after tax. SkiStar's increased investment rate and the current outside world justify that the proposal deviates from the dividend policy which states that an annual dividend of at least 50 percent of profit after tax shall be paid. The proposed record date is 13 December 2022 and the dividend to Swedish shareholders will be paid on 16 December 2022.

Annual General Meeting

Annual general meeting will be held on 10 December 2022, at 2.00 p.m. CET in Sälen.

Nomination Committee prior to SkiStar's AGM

The Nomination Committee prior to the 2022 Annual General Meeting has the following composition:

  • Per Gullstrand, appointed by family Mats and Fredrik Paulsson incl. company.
  • Anders Moberg, appointed by Aeternum Capital.
  • Niklas Johansson, appointed by Handelsbanken Fonder.

• Lennart Mauritzson, appointed by family Erik Paulsson incl. company. The Nomination Committee has appointed Per Gullstrand chairman of the committee.

Sharehoders wishing to provide the Nomination Committe with proposals can reach the Committee in writing at [email protected], or SkiStar AB, Att: Valberedningen, 780 91 Sälen.

Risks and uncertainties

The risks and uncertainties described below apply to both the parent company and group. Like all companies and business operations, SkiStar is exposed to various risks related to the business. For SkiStar, it is important to identify the risks that may prevent the company from achieving defined targets and to determine whether the risks are in line with risk propensity. Where necessary, measures are taken to avoid, minimise or monitor identified risks. The purpose of risk management is to continuously assess and manage the risks that arise in the operations and to ensure that it forms the basis for successful sustainability work. SkiStar's risk process, ownership, governance and management are discussed and evaluated in the company's audit committee and board of directors. The most relevant risk factors and how they are managed are described in the annual and sustainability report and are grouped within sustainability risks, operational risks and financial risks. For a further description of risks and uncertainties, please refer to the administration report and note 32 in the Annual and sustainability report for 2020/21.

THE SCANDINAVIAN MARKET FOR SKIPASS SALES

According to statistics published by SLAO (Swedish Ski Lift Organisation), SkiPass sales in Sweden increased by 30 percent in the 2021/22 winter season compared with the season before. SkiStar's market share of SkiPass sales was 52 (53) percent in Sweden and 32 (17) percent in Norway. The market share in Scandinavia was 44 (41) percent.

Condensed consolidated statement of comprehensive income

3 MONTHS
1 Jun-31 Aug
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21
Operating Revenue 224,048 183,827 4,092,252 2,688,782*
Income Other income 2,691 55,438 25,541 70,343
Total operating income 226,739 239,265 4,117,794 2,759,125
Operating Goods for resale -74,049 -46,686 -980,227 -683,977
Expenses Other external expenses -188,105 -131,761 -1,029,920 -667,944
Personnel costs -128,493 -102,837 -854,126 -653,423
Cost of sold interests in accommodation/exploita
tion asset
-16,188 -3,635* -21,034 -157,270*
Share in profit/loss of joint ventures/associates 25,220 15,885 65,095 37,213
Depreciation/amortisation of tangible and intan
gible fixed assets
-110,373 -149,280 -429,390 -536,074
Reversal of previous write-down 15,688
Capital gain on property transaction 198,104 198,104
Operating profit/loss -265,249 19,056 883,879 295,753
Net financial items -3,435 -24,042 -18,211 -49,579
Profit/loss before tax -268,684 -4,986 865,669 246,174
Tax 56,752 85,192 -201,116 -12,542
Profit/loss for the period -211,932 80,206 664,553 233,633

*) The Group's comparative figures for the fourth quarter of 2020/21 have been adjusted to rectify a previous misclassification. In the fourth quarter of the comparative year, netting of income and expenses amounted to SEK 62 million in the Operation of Mountain Resorts segment, which was reported on a gross basis in the previous year's accounts. This adjustment does not have any impact on the Group's operating profit.

3 MONTHS
1 Jun-31 Aug
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21
Other Comprehensive Income
Items that may be reclassified to profit or loss
Change in fair value of cash flow hedges for the
period
216 2,662 6,757
Deferred tax on cash flow hedges -375 -586 -1,407
Exchange differences on translation of foreign ope
rations for the period
26,238 287 49,098 3,351
Other comprehensive income for the period 26,238 128 51,174 8,701
Total comprehensive income for the period -185,694 80,334 715,727 242,334
Profit/loss for the period attributable to:
Shareholders of the Parent -211,792 67,830 666,525 238,119
Non-controlling interests -140 12,376 -1,972 -4,487
Profit/loss for the period -211,932 80,206 664,553 233,633
Comprehensive income for the period attributable to:
Shareholders of the Parent -185,780 67,938 715,811 247,284
Non-controlling interests 86 12,396 -85 -4,951
Total comprehensive income for the period -185,694 80,334 715,727 242,334
Earnings per share, SEK -2.70 0.87 8.50 3.04
Number of shares outstandig at the end of the period 78,376,056 78,376,056 78,376,056 78,376,056
Average number of shares outstanding 78,376,056 78,376,056 78,376,056 78,376,056

Condensed consolidated statement of financial position

ASSETS, SEK THOUSANDS 31 Aug 2022 31 Aug 2021 EQUITY AND LIABILITIES, SEK THOUSANDS 31 Aug 2022 31 Aug 2021
Non-current assets Equity Share capital 19,594 19,594
Intangible assets 197,669 178,112 Other contributed capital 397,573 397,573
Property, plant and equipment 4,239,492 3,611,397 Reserves -27,995 -64,399
Right of use assets 1,927,954 1,413,661 Retained earnings, including profit/loss for the period 2,968,005 2,405,537
Investments in joint ventures/associates 854,263 762,568 Equity attributable to shareholders of the Parent 3,357,177 2,758,305
Other investments and securities held as non-current assets 32,173 33,784 Non-controlling interests 2,128 15,720
Derivatives 58,069 Total equity 3,359,306 2,774,026
Other non-current receivables 50,555 72,890
Total non-current assets 7,360,174 6,072,412 Non-current liabilities
Liabilities to credit institutions 1,300,825 1,147,090
Current assets Provisions for pensions 17,335 14,535
Inventories 295,904 198,674 Long-term lease liabilities 1,865,743 1,372,010
295,904 198,674
Other provisions 144
Trade receivables 37,830 30,576 Derivatives 15,416
Tax receivables 76,210 72,064 Deferred tax liabilities 196,266 126,448
Other current receivables 74,365 67,953 Total non-current liabilities 3,380,169 2,675,643
Prepaid expenses and accrued income 104,430 97,728 Current liabilities
Assets held for sale 308,034 Liabilities to credit institutions 316,647 563,670
292,836 576,355 Trade payables 223,159 154,354
Tax liabilities 132,532 63,825
Cash & cash equivalents 24,610 26,556 Short-term lease liabilities 124,745 93,294
Total current assets 613,350 801,586 Other current liabilities 267,369 280,838
TOTAL ASSETS 7,973,524 6,873,998 Liabilities held for sale 155,619
Accrued expenses and deferred income 169,597 112,729
Total current liabilities 1,234,049 1,424,329
Total liabilities 4,614,218 4,099,972

TOTAL EQUITY AND LIABILITIES 7,973,524 6,873,998

Condensed consolidated statement of changes in equity

EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT

Other contribu Translation Hedging Retained earnings
and profit for the
Non-controlling Totalt
SEK Share capital ted capital reserves reserves year Total interests equity
Opening equity, 1 Sep 2020 19,594 397,573 -66,217 -7,348 2,167,418 2,511,020 49,505 2,560,525
Profit/loss for the period 238,119 238,119 -4,487 233,633
Other comprehensive income for the period 3,815 5,351 9,166 -464 8,702
Comprehensive income for the period 3,815 5,351 238,119 247,285 -4,951 242,335
Transactions with non-controlling interests -28,834 -28,834
Closing equity, 31 Aug 2021 19,594 397,573 -62,402 -1,997 2,405,537 2,758,305 15,720 2,774,026
Opening equity, 1 Sep 2021 19,594 397,573 -62,402 -1,997 2,405,537 2,758,305 15,720 2,774,026
Profit/loss for the period 666,525 666,525 -1,972 664,553
Other comprehensive income for the period 47,210 2,076 49,286 1,888 51,174
Comprehensive income for the period 47,210 2,076 666,525 715,811 -85 715,727
Transactions with non-controlling interests 13,507 13,507 -13,507
Sale of subsidiaries -12,882 -12,882 -12,882
Dividend -117,564 -117,564 -117,564
Closing equity, 31 Aug 2022 19,594 397,573 -28,074 79 2,968,005 3,357,177 2,128 3,359,306

Condensed consolidated statement of cash flows

3 MONTHS
1 Jun-31 Aug
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21
Operating activities Profit/loss after financial items -268,684 -4,986 865,669 246,174
Adjustment for non-cash items 62,764 14,546 247,824 335,051
-205,920 9,560 1,113,493 581,225
Tax paid -17,839 -736 -76,418 -91,745
Changes in working capital 167,583 31,792 200,519 209,022
Cash flow from operating activities -56,176 40,615 1,237,594 698,502
Investing activities Acquisition of property, plant and equipment -248,145 -136,453 -763,192 -581,817
Acquisition of subsidiaries -24,817 -10,978 -34,260 -118,618
Sale of property, plant and equipment -667 4,639 4,717
Other investing activities -9,196 70,644 -6,944 65,489
Cash flow from investing activities -282,825 -76,787 -799,757 -630,229
Financing activities Proceeds from borrowings 344,847 102,268 856,382 557,453
Repayment of borrowings -97,374 -27,590 -1,014,932 -521,239
Repayment of lease liabilities -102,899 -52,356 -165,419 -110,606
Dividend paid -117,564
Cash flow from financing activities 144,574 22,322 -441,533 -74,392
Cash flow for the period -194,428 -13,850 -3,697 -6,120
Cash & cash equivalents at beginning of year 224,204 67,522 26,556 59,567
Exchange differences -5,166 -341 1,751 -116
Cash & cash equivalents reported in assets held for sale -26,775 -26,775
Cash & cash equivalents at end of period 24,610 26,556 24,610 26,556

The Group's operating segments

3 MONTHS
1 Jun-31 Aug
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21
OPERATION OF MOUNTAIN RESORTS
External revenue 177,543 197,506* 3,642,902 2,519,942*
Internal revenue 20,687 7,301 60,309 25,676
Capital gains 3,131 1 15,901 325
Total operating income 201,361 204,806 3,719,112 2,545,943
External operating expenses -342,293 -414,076* -2,578,913 -2,126,734*
Costs from other segments -26,497 -8,701 -103,552 -60,965
Capital losses -12,349
Share in profit/loss of joint ventures/associates 3,344 3,344
Profit/loss from investments in joint ventures and -4,445 -314 -7,259 -4,751
associates
Depreciation
-61,216 31,012 -227,011 -272,531
Operating profit/loss -233,090 -183,928 790,028 84,306
Intangible assets 196,716 178,113 196,716 178,112
Property, plant and equipment 3,162,290 3,179,542 3,162,290 3,179,542
Financial assets 103,760 49,262 103,760 49,263
Operating loans 1,125,310 1,132,543 1,125,310 1,132,543
PROPERTY DEVELOPMENT & EXPLOITATION
External revenue 6,239 4,160 18,527 15,612
Exploitation revenue 3,918 7,425 70,149 184,744
Internal revenue 6,689 2,052 46,157 36,072
Capital gains -2,701 272 944
Total operating income 14,145 13,636 135,106 237,372
External operating expenses -15,942 -13,339 -61,749 -60,887
Costs from other segments -691 258 -3,029 126
Costs of sold exploitation assets -8,988 -1,746 -13,835 -155,380
Capital losses -7,445 -8,825 -4,224
Profit/loss from investments in joint ventures and
associates
29,615 12,856 71,804 38,620
Depreciation -7,370 -4,733 -27,379 -24,029
Operating profit/loss 3,323 6,932 92,094 31,598
Property, plant and equipment 868,724 713,698 868,724 713,698
Financial assets 833,247 819,979 833,247 819,979
Operating loans 492,162 578,217 492,162 578,217
3 MONTHS FULL YEAR
1 Jun-31 Aug 1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21
OPERATION OF HOTELS
External revenue 38,350 30,174 368,755 37,559
Internal revenue 1,095 2,485
Capital gains 1,208
Total revenue 39,445 30,174 372,448 37,559
External operating expenses -75,575 -33,007 -377,450 -63,000
Costs from other segments -1,043 -909 -2,370 -909
Capital losses -1,208
Profit/loss from investments in joint ventures and
associates
Depreciation -5,005 -1,303 -15,175 -1,303
Operating profit/loss -42,177 -5,045 -23,756 -27,653
Intangible assets 953 953
Property, plant and equipment 208,476 26,192 208,476 26,192
Internal revenue -28,472 -9,353 -108,951 -61,749
Internal costs 28,231 9,353 108,951 61,749
Consolidated revenue* 226,480 239,263 4,117,715 2,759,125
Consolidated costs -498,665 -421,305 -3,259,349 -2,670,873
Consolidated operating profit/loss -272,185 -182,041 858,366 88,251
Consolidated intangible assets 197,669 178,113 197,669 178,112
Consolidated property, plant and equipment 4,239,491 3,919,431 4,239,491 3,919,432
Consolidated financial assets 937,007 869,241 937,007 869,242
Consolidated operating loans 1,617,472 1,710,760 1,617,472 1,710,760

*) The Group's comparative figures for the fourth quarter of 2020/21 have been adjusted to rectify a previous misclassification. In the fourth quarter of the comparative year, netting of income and expenses amounted to SEK 62 million in the Operation of Mountain Resorts segment, which was reported on a gross basis in the previous year's accounts. This adjustment does not have any impact on the Group's operating profit.

In the segment report, all leasing contract are reported as operational leasing.

RECONCILIATION BETWEEN SEGMENT REPORT AND CONSOLIDATED COMPREHENSIVE INCOME

SEK THOUSAND 3 MONTHS
1 Jun-31 Aug
FULL YEAR
1 Sep-31 Aug
2021/22 2020/21 2021/22 2020/21
Operating profit according to segment report -272,185 -182,041 858,366 88,251
Reversal of leasing cost attibuted to IFRS 16 43,423 26,913 169,099 97,275
Depreciations attributable to IFRS 16 -36,487 -23,921 -140,860 -87,876
Reversal of lease depreciation in connection with sale of subsidiaries -2,726
Capital gain on property transaction 198,104 198,104
Operating profit according to consolidated comprehensive income -265,249 19,056 883,879 295,753

Condensed income statement - parent company

3 MONTHS
1 Jun-31 Aug
FULL YEAR
1 Sep-31 Aug
3 MONTHS
1 Jun-31 Aug
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21 SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21
Operating income Revenue 161,575 155,915 2,875,348 2,240,680 Other comprehensive income
Other operating income 6,955 2,020 13,601 6,502
Total operating income 168,531 157,935 2,888,949 2,247,183 Items that may be reclassified to profit or loss
Operating expenses Goods for resale -52,361 -41,127 -707,820 -592,437 Change in fair value of cash flow hedges for the period 216 2,662 6,757
Other external expenses -170,439 -153,257 -868,957 -676,334 Deferred tax on cash flow hedges -375 -586 -1,407
Personnel costs -82,208 -67,415 -564,967 -483,881 Other comprehensive income for the year -159 2,076 5,350
Cost of sold interests in accommodation/exploitation -7,200 -120 -7,250 -30,107
Depreciation/amortisation of assets -43,876 -43,275 -169,831 -159,521 Total comprehensive income for the year -168,623 -115,133 456,663 90,402
Operating profit/loss -187,553 -147,259 570,124 304,903
Net financial items -3,190 -2,884 20,174 -155,393
Profit/loss after net financial items -190,744 -150,143 590,298 149,510
Appropriations -15,340 -3,541 -15,340 -3,541
Profit/loss before tax -206,083 -153,684 574,959 145,968
Tax 37,461 38,710 -120,372 -60,917
Profit/loss for the period -168,623 -114,974 454,587 85,052

Condensed balance sheet - parent company

ASSETS, SEK THOUSANDS 31 Aug 2022 31 Aug 2021 EQUITY AND LIABILITIES, SEK THOUSANDS 31 Aug 2022 31 Aug 2021
Non-current assets Intangible assets 76,087 72,782 Equity
Property, plant and equipment 2,159,606 1,747,366 -Restricted equity Share capital 19,594 19,594
Statutory reserve 25,750 25,750
Financial assets Investments in Group companies 245,473 201,417 Development fund 5,625 4,309
Investments in joint ventures/associates 2,770 2,812 50,969 49,653
Derivatinstrument 29,883
Other investment and securities held as non-current-assets 17,392 19,091 -Non-restricted equity Share premium reserve 4,242 4,242
Other non-current receivables 26,699 13,715 Retained earnings 784,414 816,167
Receivables from Group companies 192,750 Profit/loss for the year 454,587 85,052
Total non-current assets 2,750,659 2,057,181 1,243,243 905,460
Total equity 1,294,212 955,113
Current assets
-Inventories Goods for resale 138,696 95,553 Non-current liabilities
138,696 95,553 -Non-current interest-bearing lia
bilities
Liabilities to credit institutions 480,485 437,735
-Current receivables Trade receivables 12,973 7,589 -Provisions Provisions for pensions 17,335 14,535
Receivables from Group companies 466,959 638,659 -Non-current non-interest-bearing
liabilities
Derivative liabilities 10,494
Tax receivables 61,599 60,099 Deferred tax liabilities 159,863 148,798
Other current receivables 34,408 25,832 Total non-current liabilities 657,683 611,562
Prepaid expenses and accrued income 91,155 67,382
667,095 799,561 -Current liabilities Liabilities to credit institutions 124,818 145,491
Liabilities to Group companies 957,434 836,198
-Cash and cash equivalents Cash and bank balances 785 786 Trade payables 148,008 94,705
Total current assets 806,576 895,899 Other current liabilities 269,755 237,133
TOTAL ASSETS 3,557,235 2,953,081 Accrued expenses and deferred income 105,325 72,879
Total current liabilities 1,605,340 1,386,407
Total liabilities 2,263,023 1,997,968

Intra-group receivables and liabilities are largely attributable to the overdraft facility.

TOTAL EQUITY AND LIABILITIES 3,557,235 2,953,081

The Group's key performance indicators and data per share

FULL YEAR
1 Sep-31 Aug
KEY PERFORMANCE INDICATORS 2021/22 2020/21 2019/20 2018/19 2017/18
Revenue*, SEK thousand 4,092,252 2,688,782** 2,794,166 2,675,902 2,535,705
Operating income*, SEK thousand 4,117,794 2,759,125** 2,838,961 2,688,061 2,548,204
Profit/loss before tax, SEK thousand 865,668 246,174 350,059 553,242 586,629
Profit/loss after tax, SEK thousand 664,552 233,632 286,714 460,400 486,368
Cash flow from operating activities, SEK thousand 1,237,594 698,502 734,646 722,351 679,160
Total cash flow, SEK thousand -3,697 -6,120 -11,615 -1,678 -39,014
Return on:
-capital employed, % 14 6 9 15 17
-equity, % 22 9 11 18 22
-total assets, % 12 5 8 13 14
Gross margin, % 32 19 27 33 34
Operating margin, % 21 11 14 22 24
Net margin, % 21 9 12 21 23
Equity/assets ratio, % 42 40 43 51 50

*) With effect from Q2 2020/21, all payments from SkiStar's customers for accommodation are recognised as revenue and the Company's payments to accommodation owners are recognised as an operating expense on the line 'Goods for resale'. The Company previously reported the difference between revenue from rental activities and payments to accommodation owners as net commission income under revenue. The comparative figures in this report have been restated. However, the comparative figures for 2018/19 and earlier have not been restated. (for more information, see Annual Report regarding the financial year 2020/21 under the heading "Changed Accounting Principles" in the notes to the financial statements on page 66).

**) The Group's comparative figures for the fourth quarter of 2020/21 have been adjusted to rectify a previous misclassification. In the fourth quarter of the comparative year, netting of income and expenses amounted to SEK 62 million in the Operation of Mountain Resorts segment, which was reported on a gross basis in the previous year's accounts. This adjustment does not have any impact on the Group's operating profit.

2021/22 2020/21
Q4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1
Revenue*, SEK thousand 224,048 1,535,645 2,177,645 154,914 183,826** 1,023,345 1,327,861 153,749
Operating income*, SEK thousand 226,739 1,537,977 2,195,371 157,707 239,264** 1,024,255 1,339,531 156,074
Profit/loss before tax, SEK thousand -268,684 561,312 919,883 -346,842 -4,986 112,154 445,970 -306,965
Profit/loss after tax, SEK thousand -211,932 438,942 752,419 -314,876 80,206 39,153 365,183 -250,911
Cash flow from operating activities, SEK thou
sand
-56,176 -288,947 1,236,797 349,273 40,615 -93,241 660,156 90,971
Total cash flow, SEK thousand -194,428 -588,097 706,771 72,057 -13,851 -386,437 422,457 -28,289
Gross margin, % neg 43 47 neg 42 22 40 neg
Operating margin, % neg 36 43 neg 6 12 33 neg
Net margin, % neg 36 42 neg neg 11 33 neg
Full Year
DATA PER SHARE 1) 2022 2021 2020 2019 2018
Share price, SEK 137.40 182.00 104.00 116.00 101.00
Average number of shares 78,376,056 78,376,056 78,376,056 78,376,056 78,376,056
Earnings, SEK 8.50 3.04 3.71 5.95 6.25
Cash flow from operating activities, SEK 15.79 8.91 9.37 9.22 8.67
Share price/cash flow, times 8.7 20.4 11.1 12.6 11.7
Equity, SEK 43 35 33 33 31
Price/equity, % 321 514 315 349 327
2021/22 2020/21
Q4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1
Average number of shares 78,376,056 78,376,056 78,376,056 78,376,056 78,376,056 78,376,056 78,376,056 78,376,056
Earnings SEK -2.70 5.60 5.61 -3.97 0.87 0.60 4.70 -3.12
Cash flow from operating activities, SEK -0.72 -3.73 15.78 4.46 0.52 -1.19 8.42 1.16
Equity, SEK 43 45 40 31 35 34 34 29

1) Recalculated with respect to the 2:1 split carried out on 17 January 2019 as resolved at the annual general meeting on 15 December 2018. Number of shares for previous periods have been adjusted.

Reconciliation of alternative performance measures

SEK THOUSANDS 2021/22 2020/21 2019/20 2018/19 2017/18
RETURN ON CAPITAL EMPLOYED Q 4 Q 4 Q 4 Q 4 Q 4
Profit after financial items 865,668 246,174 350,059 553,242 586,629
Finance income 27,177 32,562 46,656 49,029 55,283
Finance costs -45,387 -82,142 -90,960 -99,571 -79,548
Net financial items -18,211 -49,579 -44,304 -50,542 -24,265
Profit after financial items, plus finance costs 911,055 328,315 441,021 652,812 666,177
2021/22 2020/21 2019/20 2018/19 2017/18
CAPITAL EMPLOYED Q 4 Aug 2021 Q 4 Aug 2020 Q 4 Aug 2019 Q 4 Aug 2018 Q 4 Aug 2017
Assets 7,973,524 6,873,998 6,873,998 6,053,251 6,053,251 5,065,776 5,065,776 4,870,568 4,870,568 4,507,860
Non-current non-interest-bearing liabilities 196,266 142,008 142,008 225,206 225,206 226,546 226,546 221,113 221,113 190,107
Current non-interest-bearing liabilities 792,657 767,365 767,365 562,156 562,156 478,637 478,637 537,253 537,253 455,254
Total non-interest-bearing liabilities 988,924 909,373 909,373 787,361 787,361 705,182 705,182 758,366 758,366 645,361
Capital employed 6,984,601 5,964,625 5,964,625 5,265,889 5,265,889 4,360,594 4,360,594 4,112,202 4,112,202 3,862,499
Average capital employed 6,474,613 5,615,257 4,813,242 4,236,398 3,987,350
Return on capital employed 14% 6% 9% 15% 17%
RETURN ON EQUITY
Equity 3,359,306 2,774,026 2,774,026 2,590,524 2,590,524 2,602,064 2,602,064 2,421,089 2,421,089 2,090,251
Average equity 3,066,666 2,682,275 2,596,294 2,511,576 2,255,670
Profit after tax 664,552 233,632 286,715 460,400 486,368
Return on equity 22% 9% 11% 18% 22%
RETURN ON TOTAL ASSETS
Total assets 7,973,524 6,873,998 6,873,998 6,053,251 6,053,251 5,065,776 5,065,776 4,870,568 4,870,568 4,507,860
Average total assets 7,423,761 6,463,624 5,559,513 4,968,172 4,689,214
Return on total assets 12% 5% 8% 13% 14%

Figures for 2018/19 and earlier have not been adjusted for IFRS 16, as the Company decided to use the simplified transition approach. The first year of IFRS 16 was the financial year 2019/20.

Conducting skiing operations requires large capital investments and a stable financial base is therefore important. SkiStar uses these alternative key performance indicators as part its monitoring of the financial base.

Reconciliation of alternative performance measures

SEK THOUSANDS FULL YEAR
1 Sep-31 Aug
FULL YEAR
1 Sep-31 Aug
FINANCING AND INTEREST-BEARING LIABILITIES 2021/22 2020/21 EQUITY/ASSETS RATIO EXCLUDING IFRS 16 2021/22 2020/21
Non-current interest-bearing liabilities to credit institutions 1,300,825 1,164,694 Equity 3,416,618 2,784,037
Long-term leasing liabilities 1,865,743 1,354,406 Total assets 6,045,569 5,460,336
Provisions for pensions 17,335 14,535 Equity/assets ratio, % excluding IFRS 16 57 51
Current interest-bearing liabilities to credti institutions 316,647 572,101
Short-term lease liabilities 124,745 84,863
Net interest-bearing liabilities 3,625,295 3,190,599
Other non-current receivables 50,555 72,890
Non-interest-bearing part of non-current receivables -1,572 -35,519
Interest-bearing current receivables 1,265 12,441
Cash and cash equivalents 24,610 26,556
Interest-bearing receivables 74,858 76,368
Financial net debt (interest-bearing receivables - net interest-bearing lia
bilities)
3,550,437 3,114,231

NOTES

Pledged assets and contingent liabilities

PLEDGED ASSETS, SEK THOUSAND 31 Aug 2022 31 Aug 2021
Group* 2,992,995 2,046,810
Parent Company 534,722 531,923
CONTINGENT LIABILITIES, SEK THOUSAND
Group 473,864 473,963
Parent Company 1,510,353 1,514,269

* This year's change in the amounts of the pledges is mainly due to the real estate transaction that was realized during the previous financial year in the associated company Skiab Invest AB. As part of the transaction, the subsidiary Fjällinvest AB has pledged its shares in Skiab Invest AB as security for Skiab Invest AB's external financing.

Accounting principles

This Year-End Report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and the Swedish Annual Accounts Act. The Parent Company's accounts were prepared in accordance with the Annual Accounts Act and the Swedish Financial Reporting Board's RFR 2 Accounting for Legal Entities. The accounting policies and methods of calculation applied for the Group and Parent Company are the same as those applied in preparing the most recent annual accounts and consolidated financial statements.

Preparation of financial statements in compliance with IFRS requires Company management to make accounting estimates and judgements, as well as to make assumptions that affect the application of the accounting policies and the carrying amounts of assets, liabilities, income and expense. The actual outcome may differ from these estimates and assumptions. Certain statements contained in this report are forward-looking and reflect the current assessments of the Company and Board of Directors as regards future circumstances. None of the new IFRS standards, amended standards and interpretations applicable from 1 September 2021 have had a material impact on the fiancial reporting of the Group or the Parent Company. No new or changed standards have been applied prematurely.

NOTES, continuation

Segment reporting

Operations are monitored and presented by SkiStar in the segments Operation of Mountain Resorts, Property Development and Exploitation and Operation of Hotels. Operation of Mountain Resorts comprises the operation of mountain resorts and the sale of all products and services in this area, such as SkiPass, accommodation, activities, articles in ski shops etc. The focus is on sales and efficient operation. Earnings are charged with the segment's own costs as well as internal rents, mainly for guest accommodation rented from Property Development and Exploitation. The segment's non-current assets are mainly property, plant and equipment used directly in the operations, such as pistes and lifts, or used or rented out for activities that complement the segment, such as ski shops, equipment hire and restaurants. Property Development and Exploitation comprises the management of assets that can be exploited or used in the segment or leased to the Operation of Mountain Resorts segment. Segment revenue consists of the sale of land and other properties, the sale of weekly shares in Vacation Club, and the renting of accommodation, both through the segment and associated companies, to guests in the Operation of Mountain Resorts segment. The segment's assets consist of land and other properties, as well as shares in tenant-owner associations and associated companies focusing on hotels and the renting of cabins and apartments close to the Group's skiing areas. Operation of Hotels includes activities related to hotels conducted under the SkiStar brand and under SkiStar's management. SkiStar's operation of hotels is conducted as a tenant of the hotel properties in question. Operation of Hotels includes revenue from accommodation, restaurants and other goods and services provided in connection with the hotels. The hotels included in the new segment are SkiStarLodge Experium Lindvallen, Sälen, SkiStar Lodge Hundfjället, Sälen, SkiStar Lodge Suites, Hemsedal, SkiStar Lodge Alpin, Hemsedal, Radisson Blu Resort, Trysil and Radisson Blu Mountain Resort & Residences, Trysil.

DISTRIBUTION OF REVENUE PER SEGMENT, SEK MILLION

3 MONTHS
1 Jun-31 Aug
FULL YEAR
1 Sep-31 Aug
2021/22 2020/21 2021/22 2020/21
OPERATION OF MOUNTAIN RESPORTS
SkiPass 19 32 1,731 1,143
Accommodation 39 38 920 640
Ski rental 11 7 224 127
Ski school/Activities 61 41
Sporting goods outlets 33 21 289 207
Restaurants 10 7 73 7
Property services 15 12 127 113
Other 49 30* 211 178*
Total Operation of Mountain Resorts 176 145 3,637 2,445

PROPERTY DEVELOPMENT

AND EXPLOITATION
------------------ --
Total Property Development and Exploitation 10 9 88 197
OPERATION OF HOTELS
Accommodation 20 19 262 26
Property 3 1 12 1
Restaurants 12 8 72 8
Other 4 2 21 2
Total Operation of Hotels 39 30 367 37
Group total 224 184 4,092 2,689

DISTRIBUTION OF REVENUE PER SEGMENT AND COUNTRY, SEK MILLION

3 MONTHS
1 Jun-31 Aug
FULL YEAR
1 Sep-31 Aug
REVENUE PER COUNTRY 2021/22 2020/21 2021/22 2020/21
Sweden
- Operation of Mountain Resorts 138 121 2,755 2,164
- Property Development and Exploitation 10 8 88 98
- Operation of Hotels 9 3 85 3
Norway
- Operation of Mountain Resorts 39 15* 862 271*
- Property Development and Exploitation 1 99
- Operation of Hotels 29 27 282 34
Austria 1) 9 20 20
Group total* 224 184 4,092 2,689

*) The Group's comparative figures for the fourth quarter of 2020/21 have been adjusted to rectify a previous misclassification. In the fourth quarter of the comparative year, netting of income and expenses amounted to SEK 62 million in the Operation of Mountain Resorts segment, which was reported on a gross basis in the previous year's accounts. This adjustment does not have any impact on the Group's operating profit.

1) There are no Property Development and Expolitation operations or Operation of Hotels in Austria.

DEFINITIONS

The financial key figures are used in Swedish listed companies and by analysts. The alternative performance measures are used by management to monitor and control operations and by analysts. See pages 16-17 for comparative reconciliation of alternative performance measures.

FINANCIAL DEFINITIONS

Average interest expenses Interest expenses divided by average interest-bearing liabilities.

Cash flow per share

Cash flow before changes in working capital divided by the average number of shares.

Earnings per share

Profit/loss for the year attributable to shareholders of the Parent divided by the average number of shares.

Equity per share

Equity divided by the average number of shares for the reporting period.

Equity/Assets ratio

Equity as a percentage of total assets.

Equity/Assets ratio excluding IFRS 16 - Leasing

Equity excluding effects of IFRS 16 as a percentage of total assets excluding assets of IFRS 16.

Gross Margin

Operating profit/loss before depreciation/amortisation as a percentage of revenue.

Interest-bearing liabilities

Current and non-current liabilities to credit institutions, provisions for pensions and items in other current liabilities that are interest-bearing.

Net financial debt

Interest-bearing receivables less interest-bearing liabilities.

Net margin

Profit/loss before tax as a percentage of revenue.

Operating margin

Operating profit/loss after depreciation/amortisation as a percentage of revenue.

Operating profitperating profit/loss

Revenue less cost of goods for resale, personnel costs, other operating expenses, depreciation, profit/loss from joint ventures/associates and negative goodwill.

Return on average equity

Profit/loss after tax in relation to average equity.

Return on capital employed

Profit/loss after net financial items plus finance costs as a percentage of average capital employed. Capital employed is defined as assets less non-interest-bearing liabilities.

Return on total assets

Profit/loss after net financial items plus finance costs as a percentage of average total assets.

OTHER DEFINITIONS

ALF

Norske Alpinanlegg og fjelldestinasjoner (Norwegian Ski Lift Association).

Booking volume

A comparison of the number of booked overnight stays between two defined periods.

Financial Year

SkiStar's financial year covers the period 1 September to 31 August. First quarter (Q 1) September – November Second quarter (Q 2) December – February Third quarter (Q 3) March – May Fourth quarter (Q 4) June – August

Occupancy Rate

Accommodation bookings as a percentage of the beds mediated by SkiStar at 100% capacity in the period beginning the third week in December and ending the third week in April.

Overnight stay One booked night in a cabin, apartment or hotel room.

Skier Days One day's skiing with a SkiPass.

SkiPass Card providing access to ski lifts.

SLAO Svenska Skidanläggningars Organisation (Swedish Ski Lift Organisation).

Stefan Sjöstrand CEO

Gunilla Rudebjer Board member

Anders Svensson Board member

Presentation of the report

SkiStar will present this report via webcast on 4 October 2022, 10:00 a.m. CET. Find the dial-in information and link to the webcast on www.skistar.com/en/corporate.

Financial information

Financial year 2021/22

The Annual and Sustainability Report, 1 September 2021-31 Augusti 2022, will be published week 46.

Financial year 2022/23

The interim reports and the year-end report will be published as follows;

  • Interim Report Q1, 1 September 2022-30 November 2022, 19 December 2022, at 07.15 a.m. CET.
  • Half-Year Report Q2, 1 September 2022-28 February 2023, 21 March 2023, at 07.15 a.m. CET.
  • Interim Report Q3, 1 September 2022-31 May 2023, 20 June 2023, at 07.15 a.m. CET.
  • Year-End Report, Q4, 1 September 2022-31 August 2023, 3 October 2023, at 07.15 a.m. CET.

This Year-End Report has not been subject to review by the company's auditor.

The Board of Directors and the CEO assure that this Year-End Report provides a true and fair view of the parent company's and the group's operations, financial position and performance, and describes the material risks and uncertainties faced by the parent company and the other group companies.

Sälen, 4 October 2022

Anders Sundström Chairman

Lena Apler Board member

Fredrik Paulsson Board member

Vegard Søraunet Board member

Sara Karlsson Board member

Patrik Svärd Employee representative

This information is information that SkiStar AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 4 October 2022 07.15 a.m. CET.

SKISTAR IN BRIEF

The mountain tourism company SkiStar AB (publ) is listed on the Mid Cap list of the Nasdaq Stockholm exchange. The Group owns and operates alpine ski resorts in Sälen, Vemdalen, Åre and Stockholm (Hammarbybacken) in Sweden and in Hemsedal and Trysil in Norway. Our vision is to create memorable mountain experiences with a focus on alpine skiing in the winter and active holidays in the summer. Sustainability and responsible entrepreneurship are an integral part of SkiStar's strategy, business model, governance and culture. For more information, see www.skistar.com/en/corporate.

Business concept

As the leading tour operator for Scandinavia, SkiStar's business concept is to create memorable mountain experiences, develop sustainable destinations and offer accommodation, activities, products and services of the highest quality with our guests in focus.

Business model

Our operations are divided into three segments: Operation of Mountain Resorts, Property Development & Exploitation and Operation of Hotels, as well as a number of central functions.

Shareholder benefits

Shareholders owning at least 200 shares in SkiStar receive a 15-percent discount on SkiStar's offering at all destinations and on their online purchases at skistar.com and skistarshop.com. Read more about booking with a shareholder discount and the full terms and conditions at https://www.skistar.com/en/ corporate/investors/shareholder-discount/.

SkiStar Member is SkiStar's customer club. At the end of the 2021/22 financial year, SkiStar Member had 1.5 million registered members.

SKISTAR AB (PUBL) SE-780 91 SÄLEN Reg. No: 556093-6949 Tel: +46 280 880 50 E-mail: [email protected] www.skistar.com

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