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SkiStar

Interim / Quarterly Report Dec 20, 2021

3110_10-q_2021-12-20_45c7a275-31f9-4db2-85dc-eea3f2568e7b.pdf

Interim / Quarterly Report

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SkiStar opens the winter season with record-high bookings

- Billion investments in the mountain resorts of the future

SKISTAR INTERIM REPORT SEPTEMBER 2021-NOVEMBER 2021

SUMMARY, SEK MILLION 3 MONTHS
1 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
2021/22 2020/21 2020/21
Revenue* 155 154 2,751
Operating income* 158 156 2,821
Profit/loss before tax -347 -307 246
Profit/loss after tax -315 -251 234
Earnings per share, SEK -3.97 -3.12 3.04
Cash flow from operating activities 349 91 699
Operating margin, % neg neg 10
Equity/assets ratio, % 34 38 40
Equity/assets ratio, % excluding IFRS 16 44 43 51

*) 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 (see also under the heading 'Accounting principles' in the notes to the financial statements on page 18).

FIRST QUARTER

  • Net sales for the first quarter were SEK 155 (154) million, an increase of SEK 1 million (1 percent) compared with the previous year.
  • Profit after tax was SEK -315 (-251) million, a decline of SEK 64 million (25 percent) compared with the previous year.
  • Earnings per share amounted to SEK -3.97 (-3.12).

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

  • SkiStar strengthens its position as the leading tour operator for Scandinavia and increases its investment rate; firstly, by investing in two new ski lifts in Åre and in a year-round investment in Hammarbybacken in Stockholm with an expansion of the offer for the guests.
  • As of December 3, all of SkiStar's Swedish and Norwegian destinations were open with good conditions for alpine skiing.
  • The new SkiStar Lodge Hundfjället hotel in Sälen, with its best ski-in ski-out option, has now opened to guests.
  • At the AGM in Sälen on 11 December, the decision was taken to pay a dividend of SEK 1.50 per share.

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

SkiStar opens the winter season with record-high bookings - Billion investments in the mountain resorts of the future

The coronavirus pandemic remains a fact of life in the first quarter of the 2021/22 financial year. Our experience from previous summer and winter seasons has given us solid knowledge, meaning we have both the leadership and organisation to carry out another winter season with great confidence, despite the impact of Covid-19. Our customer surveys show that guests have felt safe and secure with us and that over 90 percent of them have been satisfied with their stay. Several precautionary measures, such as digital check-in and check-out, digital SkiPass purchases and adapted queue lanes for the larger lifts are also retained this year as improvements for our guests, which we know they appreciate. We also continue to follow the advice and recommendations of the authorities and are ready to introduce measures, new and old, if necessary.

The pandemic has heightened people's interest in being active outdoors, which is also positive for public health, making SkiStar's offering even more attractive. Demand for an active holiday with alpine skiing in Scandinavia is stronger than ever: we can show record-breaking bookings for the winter season – an increase of 13 percent, compared with the same period for winter 2018/19, i.e., before the pandemic. We also see a clear trend towards people booking early and preferring a complete package including accommodation, SkiPass, ski rental and ski school.

The cold has taken hold in the Scandinavian mountains in the latter part of the quarter, which has been particularly favourable in terms of our ability to produce snow and create optimal conditions for good alpine skiing. It is therefore very pleasing that we had all Norwegian and Swedish destinations open and operating by 3 December.

The cold weather has also driven sports shop sales, where we showed strong growth in the first quarter, +27 percent compared with the previous year. This is mainly driven by online sales, which showed an increase of 34 percent. We are also proud to strengthen our physical distribution of sporting goods through the acquisition of Sport Lodgen, Trysil's most attractive sporting goods outlets with products for both winter and summer activities. This reinforces SkiStar's presence at the destination while enabling us to offer guests a better selection.

During the first quarter of the financial year 2021/22, we recorded an operating profit of SEK -334 million, which is SEK 41 million lower than last year. This is mainly attributable to our new hotel and lodge business, which has a strong seasonal variation in revenue, but is also due to lower capital gains on our exploitation activities, which is a consequence of the time of year when projects are realised. Another contributing factor are the higher costs incurred as a result of the early snow production.

During the quarter, we also put our operational organisation in place for our third segment, Operation of Hotels, and were recently able to open our new state-of-the-art SkiStar Lodge Hundfjället with a ski-in-ski-out option that is second to none, world-class restaurants conceptualised by restaurateur and entrepreneur Pontus Frithiof and a host of activities and amenities for the whole family.

To secure the mountain resorts of the future and strengthen the position as the leading tour operator for Scandinavia all year round, we increase our investment rate and intend to make billion investments in line with our strategy. Firstly by investing in two new ski lifts in Åre and we are also continuing to invest in more experiences for our guests all year round; at the same time as we today open Hammarbybacken in Stockholm for the winter season, we announce that the City of Stockholm is extending our agreement and that we will make large future investments in activities for the snow-free season there as well. Thus, we can contribute to get more Stockholmers moving all year round and also further develop the strategic position we have in the capital with all the opportunities that Hammarbybacken provides.

Although the pandemic is still with us, we are facing the winter with valuable experience and strong drive, enabling us to once again create safe, secure and memorable mountain experiences for all our guests.

Stefan Sjöstrand CEO

Demand for an active holiday with alpine skiing in Scandinavia is stronger than ever: we can show record-breaking bookings for the winter season – an increase of 13 percent compared with the year before the pandemic. "

REVENUE AND EARNINGS

First Quarter

The Group's revenue for the first quarter amounted to SEK 158 (156) million, an increase of one percent compared with the previous year. Changes in the NOK/SEK and EUR/SEK exchange rates had an effect of SEK 1 million on revenue. The Group's operating profit for the first quarter was SEK -334 (-293) million. The fall in operating profit is attributable to the newly launched hotel operations which, just like other operations within the Group, have a strong seasonal variation in revenue.

Changes in the NOK/SEK and EUR/SEK exchange rates had a negative effect of SEK 3 million on operating profit for the quarter. Profit/loss from investments in associates and joint ventures increased to SEK -1 (-12) million. The increase compared with the previous year's quarter is partly due to increased activity in Skiab Invest AB and the acquisition of the former associated company Ski Invest AB, which was completed in the previous financial year. Net financial items improved by SEK 1 million during the quarter to SEK -13 million (-14). The change in the value of interest rate derivatives amounted to SEK 11 million (-2). Interest expenses amounted to SEK -13 million (-8); this increase can be attributed to the interest rate on lease liabilities relating to the hotel segment. The remaining SEK -11 million (-4) refers to other finance costs. The Group's profit after tax amounted to SEK -315 (-251) million, a decline of SEK 64 million, or 25 percent.

Revenue from Operation of Mountain Resorts amounted to SEK 120 (99) million, with a loss of SEK -299 (-284) million. Revenue from Property Development & Exploitation amounted to SEK 6 (55) million, with a loss of SEK -8 (-11) 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 2 (12) million. Other activities in Property Development & Exploitation are primarily related to rental of accommodation to the Operation of Mountain Resorts segment and shares from associated companies that rent out accommodation.

With effect from 1 July 2021, SkiStar conducts operations in a third segment, Operation of Hotels. Revenue from Operation of Hotels for the first quarter amounted to SEK 30 million, with a loss of SEK -32 million.

Assets held for sale

On 5 May 2021, SkiStar entered into an agreement to sell its 68-percent share in the Austrian ski resort of St. Johanner Bergbahnen GmbH ("St. Johann"). As part of this transaction, SkiStar will receive a EUR 15 million repayment of shareholder loans totalling EUR 19.5 million paid to St. Johann and a cash purchase consideration of EUR 2. Assets (value SEK 345 million at the end of Q1) and liabilities (value SEK 160 million) included in the transaction are reported as assets and liabilities held for sale. The transaction is subject to regulatory approval in Austria and is conditional on approval from the Board, auditor and other shareholders of St. Johann in accordance with Austrian regulations. The conditions of the transaction were expected to be fulfilled before the end of SkiStar's financial year on 31 August. Not every approval had been received by the stated date, nor by the end of the first quarter 2021/22. However, SkiStar and the buyer Schultz Gruppe are still working to complete the transaction as soon as possible once the approvals are obtained.

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 2018/19
Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2
Revenue* 155 246 1,023 1,328 154 162 580 1,931 121 109 939 1,431
Operating profit/loss -334 19 126 444 -292 -127 15 833 -326 -222 319 716

*) Changed accounting principles, see page 18.

FINANCIAL POSITION, TAXES AND INVESTMENTS ETC.

Cash flow

Cash flow from operating activities after changes in working capital was SEK 349 (91) million for the period. The improvement is mainly linked to an increased volume of advance bookings due to an improved booking situation compared with the same period in the previous year. Cash flow from investing activities amounted to SEK -147 (-120) million. Acquisitions of subsidiaries have generated a cash flow item of SEK -10 million. Cash flow from financing activities amounted to SEK -130 (1) million. The change was due to repayments and new loans.

Liquidity and financing

The Group's cash and cash equivalents amounted to SEK 99 (31) million at the end of the period. In addition, SEK 20 million of cash and cash equivalents have been reclassified as assets held for sale. Unused credit facilities amounted to SEK 770 (660) million. Interest-bearing liabilities amounted to SEK 3,089 (2,661) million, an increase of SEK 428 million from the previous year. This increase is attributable to a long-term lease liability connected to the signing of a long-term leasing agreement with the owner of the hotel properties; Skiab Invest AB. The average interest rate during the period was 2.58 (2.21) percent. Net financial liabilities amounted to SEK 2,941 (2,540) million at the end of November, which is an increase of SEK 401 million from the previous year (financial net debt excluding IFRS 16 amounted to SEK 1,511 million (1847)). The equity/ assets ratio fell to 34 (38) percent. The equity/assets ratio excluding IFRS 16 was 44 (43) percent.

Tax

Tax income for the period amounted to SEK 32 (56) million and was largely attributable to utilisation of tax values in the quarter's loss carryforwards.

Investments

Investments for the period amounted to SEK 148 (130) million (gross) and SEK 147 (120) million (net). The difference between gross and net is the divestment of financial assets and property, plant and equipment. Depreciation and amortisation in the same period amounted to SEK 100 (90) million.

Personnel

The average number of employees was 884 (689), an increase of 195 from the previous year. The increase is mainly due to the addition of the hotel operations and pandemic-related effects in the previous year, but also earlier opening and snow production for the 2021/22 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 as at 30 November 2021, and they are also the principal owners of Peab with which SkiStar has a business relationship. Purchases from Peab during the first quarter amounted to SEK 25 (86) million. The outstanding liability to Peab was SEK 12 (37) million. Sales to Peab amounted SEK 1 (0) million and the outstanding receivable was SEK 0 (0) million.

Purchases from associates during the first quarter amounted to SEK 25 (8) million and sales to associates amounted to SEK 1 (2) million. Net receivables from associates totalled SEK 17 (176) million, SEK 21 (180) million of which related to loans to associates. The Parent Company has transactions with subsidiaries in addition to the Group's related-party transactions. Disclosures of related-party transactions and a description of the nature of these transactions can be found in note 36 of the 2020/21 Annual and Sustainability Report.

Parent company

Net sales for the Parent Company totalled SEK 113 (86) million during the financial year. Net investments amounted to SEK 328 (52) million.

Ahead of the 2021/22 winter season

Demand ahead of the 2021/22 winter season remains strong. Overall bookings through SkiStar's accommodation agency were up +13 percent compared with the same period in 2018/19, that is, before the pandemic hit. While domestic demand for an active holiday in the mountains is strong, we are also seeing increased demand from international guests. Other business areas, such as SkiStar Business (group and conference activities), are also experiencing increased demand for the coming winter.

The increasing spread once again of Covid-19 is being managed through scenario planning, whereby various possible outcomes are avoided by various types of measures.

As previously announced, a decision has been made to carry out operational investments of about SEK 160 million, mainly in replacements, modernisation and snow production capacity. Some of the investments are also connected with SkiStar Sport & Adventures for summer 2022.

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

Activity & Recreation

• SkiStar's aim is to help more people discover the joy of an active life. This is why we offer free SkiPasses for children and young people up to the age of 15 in all municipalities where SkiStar operates. As of 30 November 2021, a total of 265 (261) free SkiPasses had been distributed. In line with previous years, a higher uptake of SkiPasses is expected in the next quarter; 2,694 SkiPasses were handed out to children and young people last year.

Ecosystem & Impact

• SkiStar is subject to several ESG ratings, which are aimed at providing investors and other stakeholders with comparable evaluations. This year, SkiStar made its first-ever disclosures to CDP* and was ranked by the organisation and awarded a rating that placed it on CDP's B list.

• A number of climate-adaption measures were implemented during the quarter. Here are some examples:

o 150 new charging stations for electric cars have been developed at our destinations.

o At SkiStar's Norwegian destinations, the use of renewable diesel (HVO) has been introduced, as previously implemented in Sweden. The change in Norway will result in a 45-percent reduction in SkiStar's own climate emissions from operations.

Dialogue & Interaction

• On 1 September 2021, SkiStar's Group Management was expanded with the addition of an HR Director. The gender distribution in Group Management is now 38 (28) percent women and 62 (72) percent men.

*) The result was announced on 7 December 2021.

About the sustainability section of this interim 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 55,567 on 30 November 2021, which is an increase of 3,724 (7 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 164 on 30 November 2021.

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

  • 27/09/2021 Anders Sundström proposed as new Chairman of the Board in SkiStar.
  • 01/10/2021 SkiStar Year-End Report September 2020-August 2021.
  • 08/11/2021 Notice to Annual General Meeting of SkiStar AB.
  • 15/11/2021 Vegard Søraunet nominated to the Board of SkiStar by the Nomination Committee in addition to previously announced proposals to the Annual General Meeting.
  • 17/11/2021 SkiStar publishes Annual and Sustainability Report for 2020/21.
  • 11/12/2021 Bulletin from Annual General Meeting of SkiStar AB.
  • 14/12/2021 Invitation to conference call with web presentation of SkiStar AB's Interim Report Q1 2021/22.
  • The press releases are available in full at www.skistar.com/en/corporate.

Annual General Meeting and Inagural Board meeting

At SkiStar's annual general meeting, held in Sälen on 11 December 2021, 194 shareholders participated in person, by proxy or by postal voting, representing 72 percent of the votes in the Company. The following decisions were made at the AGM.

  • A dividend of SEK 1.50 per share.
  • Lena Apler, Sara Karlsson, Fredrik Paulsson, Gunilla Rudebjer and Anders Sundström were re-elected to the board and Anders Svensson and Vegard Søraunet were elected new members of the board.

  • Anders Sundström was elected chairman of the board.

  • PricewaterhouseCoopers AB (PwC) was re-elected as auditor for a period of one year. Camilla Samuelsson remains the chief auditor.

The following decisions were made at the inaugural board meeting.

  • Lena Apler, Fredrik Paulsson and Gunilla Rudebjer were re-elected as members of the Audit Committee, with Lena Apler as Chairman.
  • Anders Sundström and Vegard Søraunet were elected as members of the Remuneration Committee, with Anders Sundström as Chairman.

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.

Condensed consolidated statement of comprehensive income

3 MONTHS
1 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2020/21
Operating Revenue* 154,914 153,749 2,750,514
Income Other income 2,793 2,325 70,343
Total operating income* 157,707 156,074 2,820,857
Operating Goods for resale* -59,579 -40,149 -683,977
Expenses Other external expenses -203,088 -152,871 -667,944
Personnel costs -137,385 -114,363 -653,423
Cost of sold interests in accommodation/exploitation asset -1,157 -40,330 -219,002
Share in profit/loss of joint ventures/associates -737 -11,668 37,212
Depreciation/amortisation of tangible and intangible fixed
assets**
-89,428 -89,817 -536,074
Capital gain on property transaction 198,104
Operating profit/loss -333,666 -293,123 295,754
Net financial items -13,175 -13,842 -49,579
Profit/loss before tax -346,841 -306,965 246,175
Tax 31,966 56,054 -12,542
Profit/loss for the period -314,875 -250,911 233,633

*) 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 (see also under the heading 'Accounting principles in the notes to the financial statements on page 18).

**) Depreciation / write-downs of tangible and intangible fixed assets in the first quarter includes a positive effect of SEK 10 million regarding reversal of part of the previous write-down of the holding in the subsidiary St. Johanner Bergbahnen GmbH. The write-down for the financial year 2020/21 amounted to SEK 150 million.

3 MONTHS
1 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 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 1,685 1,685 6,757
Deferred tax on cash flow hedges -371 -371 -1,407
Exchange differences on translation of foreign operations for
the period
4,827 -14,528 3,351
Other comprehensive income for the period 6,141 -13,214 8,701
Total comprehensive income for the period -308,734 -264,125 242,334
Profit/loss for the period attributable to:
Shareholders of the Parent -310,999 -244,695 238,119
Non-controlling interests -3,877 -6,216 -4,487
Profit/loss for the period -314,875 -250,911 233,633
Comprehensive income for the period attributable to:
Shareholders of the Parent -305,128 -257,429 247,284
Non-controlling interests -3,606 -6,696 -4,951
Total comprehensive income for the period -308,734 -264,125 242,334
Earnings per share, SEK -3.97 -3.12 3.04
Number of shares outstandig at the end of the period 78,376,056 78,376,056 78,376,056
Average number of shares outstanding 78,376,056 78,376,056 78,376,056

Condensed consolidated statement of financial position

ASSETS, SEK THOUSANDS 30 Nov 2021 30 Nov 2020 31 Aug 2021 EQUITY AND LIABILITIES, SEK THOUSANDS 30 Nov 2021 30 Nov 2020 31 Aug 2021
Non-current assets Equity Share capital 19,594 19,594 19,594
Intangible assets 183,429 179,473 178,112 Other contributed capital 397,573 397,573 397,573
Property, plant and equipment 3,679,249 3,921,590 3,611,397 Reserves -58,529 -86,299 -64,399
Right of use assets 1,394,127 684,420 1,413,661 Retained earnings, including profit/loss for the
wperiod
2,094,538 1,922,723 2,405,537
Investments in joint ventures/associates 761,967 380,488 762,568 Equity attributable to shareholders of the Parent 2,453,177 2,253,591 2,758,305
Other investments and securities held as non-current
assets
33,818 35,009 33,784 Non-controlling interests 12,114 42,809 15,720
Other non-current receivables 81,411 212,993 72,890 Total equity 2,465,291 2,296,400 2,774,025
Total non-current assets 6,134,001 5,413,972 6,072,412
Non-current liabilities
Current assets Liabilities to credit institutions 1,111,300 1,502,350 1,147,090
Inventories 269,197 281,462 198,674 Provisions for pensions 14,899 15,588 14,535
269,197 281,462 198,674 Long-term lease liabilities 1,341,731 618,569 1,372,010
Trade receivables 59,480 43,926 30,576 Other provisions - 9,231 144
Tax receivables 90,007 77,842 72,064 Derivatives 2,360 28,601 15,416
Other current receivables 43,485 72,821 67,953 Deferred tax liabilities 95,118 127,048 126,448
Prepaid expenses and accrued income 98,510 102,310 97,728 Total non-current liabilities 2,565,408 2,301,386 2,675,643
Assets held for sale 344,635 308,034 Current liabilities
636,118 296,899 576,355 Liabilities to credit institutions 514,233 450,102 563,670
Trade payables 250,476 201,385 154,354
Cash & cash equivalents 98,937 31,102 26,556 Tax liabilities 64,138 68,197 63,825
Total current assets 1,004,252 609,463 801,585 Short-term lease liabilities 107,269 73,901 93,294
TOTAL ASSETS 7,138,252 6,023,436 6,873,997 Other current liabilities 762,442 433,034 280,838
Liabilities held for sale 160,186 155,619
Accrued expenses and deferred income 248,813 199,031 112,731
Total current liabilities 2,107,554 1,425,650 1,424,329
Total liabilities 4,672,962 3,727,037 4,099,972
TOTAL EQUITY AND LIABILITIES 7,138,252 6,023,436 6,873,997

*) A rental contract has been signed with Skistar Lodge Hundfjället AB for the hotel building, which is expected to be ready for operation in December 2021. The contract runs for 15 years and is expected to generate a lease liability of SEK 446 million. The contract will be recognised in the balance sheet at the start of the lease term.

Condensed consolidated statement of changes in equity

EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT

SEK Share capital Other contribu
ted capital
Translation
reserves
Hedging
reserves
Retained earnings
and profit for the
year
Total Non-controlling
interests
Totalt
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 -244,695 -244,695 -6,216 -250,911
Other comprehensive income for the period -14,048 1,314 -12,734 -480 -13,214
Comprehensive income for the period -14,048 1,314 -244,695 -257,429 -6,696 -264,125
Closing equity, 30 Nov 2020 19,594 397,573 -80,265 -6,034 1,922,590 2,253,590 42,809 2,296,399
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 -310,999 -310,999 -3,877 -314,875
Other comprehensive income for the period 4,556 1,314 5,870 271 6,141
Comprehensive income for the period 4,556 1,314 -310,999 -305,128 -3,606 -308,734
Closing equity, 30 Nov 2021 19,594 397,573 -57,846 -683 2,094,538 2,453,177 12,114 2,465,292

Condensed consolidated statement of cash flows

3 MONTHS
1 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2020/21
Operating activities Profit/loss after financial items -346,842 -306,965 246,174
Adjustment for non-cash items 89,031 106,696 335,051
-257,811 -200,269 581,225
Tax paid -19,246 -24,555 -91,745
Changes in working capital 626,330 315,795 209,022
Cash flow from operating activities 349,273 90,971 698,502
Investing activities Acquisition of property, plant and equipment -129,260 -125,230 -581,817
Acquisition of subsidiaries -9,923 - -118,618
Sale of property, plant and equipment 1,889 1,137 4,717
Other investing activities -9,212 3,681 65,489
Cash flow from investing activities -146,506 -120,412 -630,229
Financing activities Proceeds from borrowings 295,138 178,563 557,453
Repayment of borrowings -400,762 -162,057 -521,239
Repayment of lease liabilities -25,086 -15,354 -110,606
Dividend paid - -
Cash flow from financing activities -130,710 1,152 -74,392
Cash flow for the period 72,057 -28,289 -6,119
Cash & cash equivalents at beginning of year 26,556 59,567 59,567
Exchange differences 324 -176 -116
Cash & cash equivalents reported in assets held for sale -26,775
Cash & cash equivalents at end of period* 98,937 31,102 26,556

*) In addition to balanced cash & cash equivalents at the end of period, SEK 20 million of cash and cash equivalents have been reclassified as assets held for sale.

The Group's operating segments

3 MONTHS FULL YEAR
SEK THOUSANDS 2021/22 1 Sep-30 Nov
2020/21
1 Sep-31 Aug
2020/21
OPERATION OF MOUNTAIN RESORTS
External revenue* 120,818 100,177 2,581,674
Internal revenue 4,789 7,184 25,676
Capital gains -35 303 325
Total operating income* 125,572 107,664 2,607,676
External operating expenses* -352,098 -314,600 -2,188,466
Costs from other segments -12,393 -11,986 -60,965
Rearesultatandel från intressebolag - - 3,344
Profit/loss from investments in joint ventures and associates -69 -1,886 -4,751
Depreciation/amortisation -60,145 -63,508 -272,531
Operating profit/loss -299,132 -284,315 84,306
Intangible assets 183,429 179,474 178,112
Property, plant and equipment 3,296,411 3,113,032 3,179,542
Financial assets 61,849 63,335 49,262
Operating loans 1,035,026 991,072 1,132,543
PROPERTY DEVELOPMENT & EXPLOITATION
External revenue 1,409 2,502 15,612
Exploitation revenue 3,571 52,307 184,744
Internal revenue 7,705 4,837 36,072
Capital gains 1,669 785 944
Total operating income 14,354 60,432 237,372
External operating expenses -13,817 -14,653 -60,887
Costs from other segments -139 -36 125
Costs of sold exploitation assets -1,157 -40,330 -155,380
Capital losses -722 -1,403 -4,224
Profit/loss from investments in joint ventures and associates -668 -10,487 38,620
Depreciation/amortisation -5,772 -4,428 -24,029
Operating profit/loss -7,921 -10,905 31,597
Property, plant and equipment 758,375 808,558 713,698
Financial assets 817,438 565,155 819,979
Operating loans 590,506 761,380 578,217
3 MONTHS
1 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2020/21
OPERATION OF HOTELS
External revenue 30,275 - 37,559
Internal revenue 2 - -
Total revenue 30,276 - 37,559
External operating expenses -60,786 - -63,000
Costs from other segments -4 - -909
Depreciation/amortisation -1,719 - -1,303
Operating profit/loss -32,234 - -27,653
Property, plant and equipment - - 26,192
Internal revenue -12,496 -12,022 -61,748
Internal costs 12,496 12,022 61,748
Consolidated revenue* 157,707 156,074 2,820,857
Consolidated costs -496,954 -451,295 -2,732,608
Consolidated operating profit/loss -339,247 -295,220 88,251
Consolidated intangible assets 183,429 179,474 178,112
Consolidated property, plant and equipment 4,054,785 3,921,590 3,919,432
Consolidated financial assets 879,288 628,490 869,242
Consolidated operating loans 1,625,532 1,752,452 1,710,760

Segment reporting

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

RECONCILLATION BETWEEN SEGMENT REPORT AND CONSOLIDATED COMPREHENSIVE INCOME

SEK THOUSAND 3 MONTHS
1 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
2021/22 2020/21 2020/21
Operating profit according to segment report -339,247 -295,220 88,251
Reversal of leasing cost attibuted to IFRS 16 38,114 23,274 97,275
Depreciations attributable to IFRS 16 -32,533 -21,177 -87,876
Capital gain on property transaction 198,104
Operating profit according to consolidated comprehensive income -333,666 -293,123 295,754

Condensed income statement - parent company

3 MONTHS
1 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2020/21
Operating income Revenue* 112,642 86,264 2,240,680
Other operating income 2,121 1,427 6,502
Total operating income* 114,763 87,691 2,247,182
Operating expenses Goods for resale* -46,910 -30,879 -592,437
Other external expenses -178,376 -132,176 -676,334
Personnel costs -81,958 -81,835 -483,881
Cost of sold interests in accommodation/exploitation - - -30,107
Depreciation/amortisation of assets -39,794 -39,764 -159,520
Operating profit/loss -232,274 -196,964 304,902
Net financial items** -1,514 -5,451 -155,394
Profit/loss after net financial items -233,788 -202,415 149,510
Appropriations - - -3,541
Profit/loss before tax -233,788 -202,415 145,968
Tax 46,945 43,728 -60,917
Profit/loss for the period -186,843 -158,687 85,052
3 MONTHS
1 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 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 1,685 1,685 6,757
Deferred tax on cash flow hedges -371 -371 -1,407
Other comprehensive income for the year 1,314 1,314 5,350
Total comprehensive income for the year -185,529 -157,373 90,401

*) 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 (see also under the heading 'Accounting principles in the notes to the financial statements on page 18).

Condensed balance sheet - parent company

EQUITY AND LIABILITIES, SEK THOUSANDS 30 Nov 2021 30 Nov 2020 31 Aug 2021
Equity
-Restricted equity Share capital 19,594 19,594 19,594
Statutory reserve 25,750 25,750 25,750
Development fund 4,309 4,309 4,309
49,653 49,653 49,653
-Non-restricted equity Share premium reserve 4,242 4,242 4,242
Retained earnings 902,532 812,209 816,167
Profit/loss for the year -186,843 -158,686 85,052
719,931 657,765 905,460
Total equity 769,583 707,418 955,112
Non-current liabilities
-Non-current interest-bearing lia
bilities
Liabilities to credit institutions 626,985 487,735 437,735
-Provisions Provisions for pensions 14,899 12,653 14,535
Other provisions - 87 -
-Non-current non-interest-bearing
liabilities
Derivative liabilities 5,956 15,854 10,494
Deferred tax liabilities 101,852 104,574 148,798
Total non-current liabilities 749,693 620,903 622,562
-Current liabilities Liabilities to credit institutions 62,000 290,233 145,491
Liabilities to Group companies 913,440 897,972 836,198
Trade payables 191,086 142,946 94,705
Other current liabilities 599,497 408,083 237,133
Accrued expenses and deferred income 149,697 120,037 72,879
Total current liabilities 1,915,720 1,859,270 1,386,407
Total liabilities 2,665,413 2,480,174 1,997,968
TOTAL EQUITY AND LIABILITIES 3,434,996 3,187,592 2,953,081

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

ASSETS, SEK THOUSANDS 30 Nov 2021 30 Nov 2020 31 Aug 2021
Non-current assets Intangible assets 77,204 74,216 72,782
Property, plant and equipment 1,794,200 1,714,285 1,747,366
Financial assets Investments in Group companies 211,428 299,377 201,417
Investments in joint ventures/associates 2,812 2,812 2,812
Other investment and securities held as non-cur
rent-assets
19,091 19,211 19,091
Other non-current receivables 23,831 13,936 13,715
Receivables from Group companies 201,750 - -
Total non-current assets 2,330,316 2,123,836 2,057,181
Current assets
-Inventories Goods for resale 157,860 146,203 95,553
157,860 146,203 95,553
-Current receivables Trade receivables 33,948 31,834 7,589
Receivables from Group companies 657,970 717,846 638,659
Tax receivables 76,490 69,455 60,099
Other current receivables 19,188 30,585 25,832
Prepaid expenses and accrued income 77,272 64,369 67,382
864,867 914,088 799,561
-Cash and cash equivalents Cash and bank balances 81,954 3,463 786
Total current assets 1,104,681 1,063,754 895,899
TOTAL ASSETS 3,434,996 3,187,591 2,953,081

The Group's key performance indicators and data per share

2021/22 2020/21 2019/20
Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2
Revenue, SEK thousand* 154,914 245,559 1,023,345 1,327,861 153,749 162,198 580,001 1,931,032
Operating income, SEK thousand* 157,707 300,997 1,024,255 1,339,531 156,074 199,111 580,302 1,935,028
Profit/loss before tax, SEK thousand -346,842 -4,986 112,154 445,970 -306,965 -135,070 -2,592 809,244
Profit/loss after tax, SEK thousand -314,876 80,206 39,153 365,183 -250,911 -100,615 -9,859 641,819
Cash flow from operating activities, SEK thou
sand
349,273 40,615 -93,241 660,156 90,971 23,989 504,345 880,543
Total cash flow, SEK thousand 72,057 -13,851 -386,437 422,457 -28,289 -4,144 -50,543 72,072
Gross margin, % neg 42 22 40 neg neg 20 48
Operating margin, % neg 6 12 33 neg neg 3 43
Net margin, % neg neg 11 33 neg neg neg 42
3 MONTHS
1 Sep-30 Nov
KEY PERFORMANCE INDICATORS 2021/22 2020/21 2019/20 2018/19 2017/18
Revenue, SEK thousand* 154,914 153,749 120,935 196,378 145,988
Operating income, SEK thousand* 157,707 156,074 124,521 198,727 148,104
Profit/loss before tax, SEK thousand -346,842 -306,965 -321,524 -218,013 -252,541
Profit/loss after tax, SEK thousand -314,876 -250,911 -244,631 -144,121 -178,756
Cash flow from operating activities, SEK thousand 349,273 90,971 334,459 284,069 172,925
Total cash flow, SEK thousand 72,057 -28,289 -29,001 -28,478 -10,507
Return on:
-capital employed, % -6 -5 -7 -5 -6
-equity, % -12 -10 -10 -6 -9
-total assets, % -5 -5 -6 -4 -5
Gross margin, %* -148 -130 -190 -73 -124
Operating margin, %* -212 -188 -262 -105 -163
Net margin, %* -220 -197 -258 -110 -171
Equity/assets ratio, % 34 38 38 44 40
30 nov Helår
DATA PER SHARE 1) 2021 2020 2019 2018 2017 2020/21
Share price, SEK 164.00 98.30 123.00 111.75 85.00 182.00
Average number of shares 78,376,056 78,376,056 78,376,056 78,376,056 78,376,056 78,376,056
Earnings, SEK -3.97 -3.12 -3.03 -1.73 -2.26 3.04
Cash flow from operating activities, SEK 4.46 1.16 4.27 3.62 2.21 8.91
Share price/cash flow, times 36.8 84.7 28.8 30.8 38.5 20.4
Equity, SEK 31 29 30 29 24 35
Price/equity, % 521 335 413 388 348 294
2021/22 2020/21 2019/20
Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2
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 -3.97 0.87 0.60 4.70 -3.12 -1.23 -0.07 8.04
Cash flow from operating activities, SEK 4.46 0.52 -1.19 8.42 1.16 0.31 6.43 11.23
Equity, SEK 31 35 34 34 29 33 34 34

*) 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 (see also under the heading 'Accounting principles' in the notes to the financial statements on page 18).

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.

Reconcilation of alternative performance measures

SEK THOUSANDS 2021/22 2020/21 2019/20 2018/19 2017/18
RETURN ON CAPITAL EMPLOYED Q 1 Q 1 Q 1 Q 1 Q 1
Profit after financial items -346,842 -306,965 -321,524 -218,013 -252,541
Finance income 13,210 14,147 8,713 11,316 8,545
Finance costs -26,384 -27,988 -4,400 -20,333 -19,055
Net financial items -13,175 -13,842 4,313 -9,016 -10,509
Profit after financial items, plus finance costs -320,458 -278,976 -317,123 -197,680 -233,487
2021/22 2020/21 2019/20 2018/19 2017/18
CAPITAL EMPLOYED Q 1 Aug 2021 Q 1 Aug 2020 Q 1 Aug 2019 Q 1 Aug 2018 Q 1 Aug 2017
Assets 7,138,252 6,873,998 6,023,435 6,023,251 6,080,256 5,065,776 5,085,971 4,870,568 4,791,531 4,507,860
Non-current non-interest-bearing liabilities 122,499 142,008 164,880 225,206 140,212 226,546 185,620 221,113 117,701 190,107
Current non-interest-bearing liabilities 1,486,054 767,365 901,646 562,156 1,199,340 478,637 1,096,002 537,253 977,502 455,254
Total non-interest-bearing liabilities 1,608,553 909,373 1,066,526 787,361 1,339,553 705,182 1,281,622 758,366 1,095,202 645,361
Capital employed 5,529,699 5,964,625 4,956,909 5,235,889 4,740,703 4,360,594 3,804,349 4,112,202 3,696,329 3,862,499
Average capital employed 5,747,162 5,096,399 4,550,649 3,958,275 3,779,414
Return on capital employed -6% -5% -7% -5% -6%
RETURN ON EQUITY
Equity 2,465,292 2,774,026 2,296,399 2,560,524 2,336,050 2,602,064 2,258,351 2,421,089 1,915,104 2,090,251
Average equity 2,619,659 2,428,462 2,469,057 2,339,720 2,002,677
Profit after tax -314,876 -250,911 -244,631 -144,121 -178,756
Return on equity -12% -10% -10% -6% -9%
RETURN ON TOTAL ASSETS
Total assets 7,138,252 6,873,998 6,023,435 6,023,251 6,080,256 5,065,776 5,085,971 4,870,568 4,791,531 4,507,860
Average total assets 7,006,125 6,023,343 5,573,016 4,978,269 4,649,695
Return on total assets -5% -5% -6% -4% -5%

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.

Reconcilation of alternative performance measures

SEK THOUSANDS 3 MONTHS
1 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
3 MONTHS
1 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
FINANCING AND INTEREST-BEARING LIABILITIES 2021/22 2020/21 2020/21 EQUITY/ASSETS RATIO EXCLUDING IFRS 16 2021/22 2020/21 2021/22
Non-current interest-bearing liabilities to credit institutions 1,111,300 1,502,350 1,147,090 Equity 2,514,515 2,290,097 2,784,037
Long-term leasing liabilities 1,341,731 618,569 1,372,010 Total assets 5,744,125 5,339,015 5,460,336
Provisions for pensions 14,899 15,588 14,535 Equity/assets ratio, % excluding IFRS 16 44 43 51
Current interest-bearing liabilities to credti institutions 514,233 450,102 563,670
Short-term lease liabilities 107,269 73,901 93,294
Net interest-bearing liabilities 3,089,431 2,660,510 3,190,599
Other non-current receivables 81,411 212,993 72,890
Non-interest-bearing part of non-current receivables -33,549 -135,954 -35,519
Interest-bearing current receivables 1,915 12,393 12,441
Cash and cash equivalents 98,937 31,102 26,556
Interest-bearing receivables 148,714 120,534 76,368
Financial net debt (interest-bearing receivables - net inte
rest-bearing liabilities)
2,940,717 2,539,976 3,114,231

NOTES

Pledged assets and contingent liabilities

PLEADGED ASSETS, SEK THOUSAND 2021-11-30 2020-11-30 2021-08-31
Group 2,136,485 1,674,864 2,046,810
Parent Company 532,286 540,840 531,923
CONTINGENT LIABILITIES, SEK
THOUSAND
Group 605,550 651,075 473,963
Parent Company 1,606,170 1,772,942 1,514,269

Accounting principles

This Interim 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, apart from recognition of revenue from accommodation. The Company previously reported the difference between revenue from rental activities and payments to accommodation owners as net commission income under revenue. With effect from Q2 2020/21, all accommodation payments from SkiStar's customers are instead recognised as revenue and the Company's payments to accommodation owners are recognised as an operating expense on the line 'Goods for resale'. On a net basis, this change does not affect the Group's or the Parent Company's operating profit or earnings per share.

The reason for the amendment is that the Company has reassessed whether SkiStar is the principal or the agent in terms of the accommodation provided through SkiStar to SkiStar's customers. In recent years, SkiStar has gradually made changes to agreements with accommodation owners, which has, in a review, made it increasingly clear that SkiStar should be seen as the principal with regard to these accommodation services. A company is the principal if it controls the identified product or service before the product or service is transferred to the customer. SkiStar signs an agreement with accommodation owners for at least one year to rent out accommodation through its website. For this, SkiStar pays the accommodation owner rent which is revenue-based in its entirety. The following indicators show that SkiStar is the principal when arranging

accommodation for its customers:

  • SkiStar has primary responsibility for fulfilling the promise to provide the accommodation service, including responsibility for the service being acceptable; the customer approaches SkiStar's on-site reception for service matters or accommodation deficiencies,

  • SkiStar has sole discretion in establishing the price of the accommodation service and this cannot be influenced by the accommodation owner,

  • SkiStar has the opportunity to package accommodation and create campaigns in combination with other products such as ski rental, ski school, SkiPass and various ski products.

The amended policy described above should be seen as a correction of an error. Comparative figures have been restated for the 2019/20 financial year in this report.

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

With effect from 1 July 2021, operations are monitored and presented in the segments Operation of Mountain Resorts, Property Development & 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 & 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 & 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 from 1 July 2021. 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 (opening December 2021), 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 Sep-30 Nov
FULL YEAR
1 Sep-31 Aug
2021/22 2020/21 2021/22
OPERATION OF MOUNTAIN RESPORTS
SkiPass 6 4 1 143
Accommodation* 14 1 640
Ski rental 1 1 127
Ski school/Activities - - 41
Sporting goods outlets 47 40 207
Restaurants 5 7
Property services 12 17 113
Other 35 36 240
Total Operation of Mountain Resorts* 121 99 2 517
PROPERTY DEVELOPMENT &
EXPLOITATION
Total Property Development & Exploitation 6 55 197
OPERATION OF HOTELS
Accommodation 16 26
Property 1 1
Restaurants 10 8
Other 3 2
Total Operation of Hotels 30 - 37
Group total* 157 154 2,751

DISTRIBUTION OF REVENUE PER SEGMENT AND COUNTRY, SEK MILLION

3 MONTHS
1 Sep-30 Nov
REVENUE PER COUNTRY 2021/22 2020/21 2020/21
Sweden
- Operation of Mountain Resorts* 93 71 2 164
- Property Development & Exploitation 5 7 98
- Operation of Hotels 2 3
Norway
- Operation of Mountain Resorts* 25 25 333
- Property Development & Exploitation 1 48 99
- Operation of Hotels 28 34
Austria 1) 4 3 20
Group total* 157 154 2,751

*) Changed accounting principles, see page 18.

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.

Financial net debt Interest-bearing receivables less interest-bearing liabilities.

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 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).

Financial information

Financial year 2021/22

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

  • Half-Year Report Q2, 1 September 2021-28 February 2022, 17 March 2022, at 07.15 a.m. CET.
  • Interim Report Q3, 1 September 2021-31 May 2022, 17 June 2022, at 07.15 a.m. CET.
  • Year-End Report, Q4, 1 September 2021-31 August 2022, 4 October 2022, at 07.15 a.m. CET.

Presentation of the interim report

SkiStar will present its interim report via webcast on 20 December 2021, 10:00 a.m. CET. Find the dial-in information and link to the webcast on www.skistar.com/se/corporate.

This Interim Report has not been subject to review by the company's auditor.

The CEO assure that this Interim 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, 20 December 2021

Stefan Sjöstrand CEO

This information is information that SkiStar AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 20 December 2021, 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 Hammarbybacken (Stockholm) in Sweden, Hemsedal and Trysil in Norway and St. Johann in Tirol in Austria*. 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.

* It has been decided that SkiStar will divest its ownership share in St. Johann in Tirol, but the transaction is not yet complete.

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/.

MySkiStar

MySkiStar is SkiStar's customer club. At the end of the 2020/21 financial year, MySkiStar had 1.3 million registered members.

SKISTAR AB (PUBL) SE-780 67 SÄLEN Reg. No: 556093-6949 Tel: +46 280 880 50 E-mail: [email protected] www.skistar.com

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