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SkiStar

Earnings Release Jun 17, 2022

3110_10-q_2022-06-17_348c5d06-1b6a-49c4-b816-eb40aea18cd6.pdf

Earnings Release

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New record profits and sustained strong staycation trend

SKISTAR INTERIM REPORT SEPTEMBER 2021-MAY 2022

SUMMARY, SEK MILLION 3 MONTHS
1 Mar-31 May
9 MONTHS
1 Mar-31 May
FULL YEAR
1 Sep-31 Aug
2021/22 2020/21 2021/22 2020/21 2020/21
Revenue 1,536 1,023 3,868 2,505 2,751
Operating income 1,538 1,024 3,891 2,520 2,821
Profit/loss before tax 561 112 1,134 251 246
Profit/loss after tax 439 39 876 153 234
Earnings per share, SEK 5.60 0.60 11.21 2.17 3.04
Cash flow from operating activities -292 -93 1,294 658 699
Operating margin, % 36 12 30 11 10
Equity/assets ratio, % 46 42 46 42 40
Equity/assets ratio, % excluding IFRS 16 61 46 61 46 51

THIRD QUARTER

  • Net sales for the third quarter were SEK 1,536 (1,023) million, an increase of SEK 513 million (50 percent) compared with the previous year.
  • Profit after tax was SEK 439 (39) million for the third quarter, an increase of SEK 400 million or 1,022 percent compared with the previous year.
  • Earnings per share amounted to SEK 5.60 (0.60).

FIRST NINE MONTHS

  • Net sales for the nine-month period increased to SEK 3,868 (2,505) million, an increase of SEK 1,363 million (54 percent) compared with the previous year.
  • Profit after tax was SEK 876 (153) million, an increase of SEK 723 million (471 percent) compared with the previous year.
  • Earnings per share amounted to SEK 11.21 (2.17), an increase of 416 percent.

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

SIGNIFICANT EVENTS DURING THE PERIOD AND AFTER THE END OF THE PERIOD

  • SkiStar has decided to make further investments ahead of the coming financial year. SEK 67 million is being invested in new summer activities for the company's destinations. This is in addition to the previously communicated investments for the next financial year of SEK 555 million, which include extensive investments in replacements and modernisations with an extra focus on snow capacity, as well as new lifts in order to wind-proof SkiStar Åre.
  • For the first time, SkiStar had over six million skier days at its destinations during the winter season. The number of skier days totalled 6,031,000, which represents a ten-percent increase compared with the previous record season in 2018/19.

COMMENT FROM THE CEO

New record results and sustained strong staycation trend

Yet another winter season is behind us and, as we review it, we can say that SkiStar has produced its best nine-month result ever, with profit before tax of SEK 1,134 million, an improvement of SEK 883 million year-on-year. It is truly gratifying that we broke the record of the number of skier days during the winter season – 6,031,000 – which is an increase of ten percent compared to the previous seasonal record in 2018/19, that is, before the pandemic hit. We have also had very strong growth in all mountain products such as SkiPass, up 54 percent and ski rental, up 78 percent, together with record sales in our sporting goods operations, up 38 percent. This shows that the interest in our core business – alpine skiing in the Scandinavian mountains – remains extremely strong.

The late Easter this year was particularly favourable, with both visitor records and fantastic conditions with glorious weather to the delight of many guests. I am also extremely proud of the fact that our guests remain satisfied with their stay with us: eight out of ten state that we helped ensure a memorable mountain experience this winter. Naturally, our employees are a contributing factor to this success, with nine out of ten of them stating that they enjoy their work.

It is also obvious that more and more people are opting to holiday at home in Scandinavia this summer too. Regarding SkiStar Sports & Adventures, which offers an active holiday for the whole family in summer, we are seeing a positive trend once again this year with bookings up nine percent, measured in the number of booked overnight stays via SkiStar, compared to the same period last year. SkiStar Sälen and Åre have already opened the summer season with several innovations in MTB cycling, lift-assisted hiking and climbing parks for all levels. We are now opening up in Trysil with triple capacity for lift-assisted trail cycling this summer. The new Stockholm Hammarbybacken is also opening for the midsummer weekend, with new attractions such as a climbing park, Mountain Coaster and Mountain Tube. We will also be the first in Sweden to offer modern summer skiing later in the summer: a year-round investment for all Stockholmers and visitors to the capital.

By connecting to popular sports personalities such as Nils van der Poel and Charlotte Kalla who act as product and business developers and ambassadors, we are also creating great success for, and attraction to, SkiStar and mountain tourism, with an additional focus on getting more people moving and thus more guests at our destinations. Our position as the leading holiday organiser in Scandinavia all year round will be strengthened further by this.

Efforts to implement our sustainability strategy are continuing at a faster pace with a focus on our 2030 objective. The favourable ski rental result during the period was also positive from an environmental perspective and an important part of our circular transition. During the past year, we have entered into a collaboration with Keep Sweden Tidy and Keep Norway Beautiful to keep our mountains pure and to clear nature of litter. To further reduce our emissions, we have finally introduced the first mass-produced electric snowmobiles in the world, presented first in Sälen. For the entire operation, this transition means reduced emissions of 11 percent during a winter season. I truly hope that the entire industry will follow suit, so we can work together to preserve our white winters in futures to come.

Given the uncertain global situation and the impact on our target groups' household finances in the future, it can be difficult and complex to predict coming developments. This also makes it difficult to gain a solid picture of bookings for the 2022/23 winter season. However, it is gratifying that bookings are up 20 percent for the coming winter compared with the same period before the most recent comparably normal season before the pandemic: 2019/20.

Despite worries and uncertainty in our operating environment, I feel confident that we will continue to have a stable and solid business and will offer products that are appreciated and in strong demand among our guests, even in times of crisis. SkiStar's recipe for success requires – and will continue to require – us to be flexible when dealing with different scenarios, something that the pandemic we have gone through and the continued staycation trend is proof of.

Stefan Sjöstrand, CEO

We have had very strong growth in all mountain products such as SkiPass, up 54 percent, and ski rental up 78 percent, together with record sales in our sporting goods operations, up 38 percent. This shows that the interest in our core business – alpine skiing in the Scandinavian mountains – remains extremely strong. "

REVENUE AND EARNINGS

Third Quarter

The Group's revenue for the third quarter amounted to SEK 1,538 (1,024) million, an increase of 50 percent compared to the previous year. Changes in the NOK/SEK exchange rate had an effect of SEK 24 million on revenue. The Group's operating profit for the third quarter amounted to SEK 547 (126) million. The improvement in operating profit is attributable to much higher revenue, which is an effect of an extremely successful season in which eased restrictions led to our guests returning to our destinations in Norway and a very positive trend compared to the previous year for our destinations in Sweden. Changes in the NOK/ SEK exchange rates had a positive effect of SEK 7 million on operating profit for the quarter. Profit/loss from investments in associates and joint ventures amounted to SEK 17 (27) million. Net financial items improved by SEK 29 million during the quarter to SEK 15 million (-14). The change in the value of interest rate derivatives amounted to SEK 27 million (8). Interest expenses amounted to SEK -17 million (-12); this increase can primarily be attributed to the interest rate on lease liabilities related to the hotel segment.

Consolidated profit after tax amounted to SEK 439 (39) million, an increase of SEK 400 million or 1,021 percent. Revenue (including internal revenue) from Operation of Mountain Resorts amounted to SEK 1,360 (932) million, with a profit of SEK 457 (105) million. Revenue from Property Development and Exploitation amounted to SEK 71 (110) million, with a profit of SEK 66 (18) 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 45 (30) million. Other activities in Property Development and Exploitation are primarily related to the rental of accommodation to the Operation of Mountain Resorts segment and shares from associated companies that rent out accommodation. Revenue from Operation of Hotels for the third quarter amounted to SEK 139 million (0), with a profit of SEK 19 million (0).

Nine-month period

The Group's revenue for the nine-month period amounted to SEK 3,891 (2,520) million, an increase of 54 percent from the previous year.

Changes in the NOK/SEK and EUR/SEK exchange rates had a positive effect of SEK 61 million on revenue. The Group's operating profit for the period amounted to SEK 1,149 (277) million, with the comparative period being negatively affected by impairment of the assets in the subsidiary St. Johanner Bergbahnen GmbH, totalling SEK 108 million.

Changes in the NOK/SEK and EUR/SEK rates for the period had a positive effect of SEK 14 million on operating profit. Profit from investments in associates and joint ventures increased by SEK 19 million to SEK 40 (21) million. This increase is explained by expanded operations at Skiab Invest AB, where SkiStar is the main tenant. Net financial items improved by SEK 11 million during the period to SEK -15 (-26) million. SEK 48 (8) million related to a change in the value of the interest rate derivative, which totalled SEK 35 (-13) million on 31 May. Interest expenses increased by SEK 25 million to SEK 60 (35) million, which can primarily be attributed to higher lease liabilities related to the hotel segment. Other differences relate to currency fluctuations.

The Group's profit after tax for the period was SEK 876 (153) million, an increase of SEK 723 million or 471 percent. Revenue, including internal, from Operation of Mountain Resorts for the period amounted to SEK 3,518 (2,348) million, with a profit of SEK 1,023 (246) million. Revenue from Property Development and Exploitation for the period amounted to SEK 121 (233) million, with a profit of SEK 89 million (25). 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 47 (66) million, including SEK 0 (43) million through associated companies. Other activities within Property Development and

QUARTERLY VALUES, SEK MILLION

Exploitation relate primarily to rental of accommodation to the Operation of Ski Resorts segment. Revenue from Operation of Hotels for the period amounted to SEK 333 million (0), with a profit of SEK 18 million (0).

Disposal of subsidiaries

During the nine-month period, SkiStar sold all its shares in St. Johann to St. Johanner Bergbahnen Beteiligungs GmbH. 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 during the nine-month period, relating 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.

2021/22 2020/21 2019/20 2018/19
Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Q 4
Revenue 1,536 2,178 155 246 1,023 1,328 154 162 580 1,931 121 109
Operating profit/loss 547 936 -334 19 126 444 -292 -127 15 833 -326 -222

FINANCIAL POSITION, TAXES AND INVESTMENTS ETC.

Cash flow

Cash flow from operating activities after changes in working capital was SEK 1,294 (658) million for the nine-month period, an improvement mainly linked to higher operational profits. Cash flow from investing activities amounted to SEK -517 million (-553). Cash flow from financing activities amounted to SEK -586 (-97) million, with the change mainly due to loan repayments and this year's dividend payment.

Liquidity and financing

The Group's cash and cash equivalents amounted to SEK 224 (67) million at the end of May. Unused credit facilities amounted to SEK 770 (590) million. Interest-bearing liabilities amounted to SEK 3,159 (2,863) million, an increase of SEK 296 million from the previous year. This increase is attributable to a non-current lease liability related to the signing of a long-term lease with the owner of the hotel properties – Skiab Invest AB. The average interest rate during the period was 2.34 (2.16) percent. Net financial liabilities amounted to SEK 2,885 (2,702) million at the end of May, an increase of SEK 183 million from the previous year (financial net debt excluding IFRS 16 amounted to SEK 1,016 million (2,117). The equity/assets ratio increased to 46 (42) percent. The equity/assets ratio excluding IFRS 16 was 61 (46) percent.

Tax

Tax expense for the period amounted to SEK 258 (98) million and was mainly attributable to current tax.

Investments

Investments for the period amounted to SEK 521 (568) million gross and SEK 516 (553) 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 319 (387) million, with the difference mainly explained by the previous year's impairment of shares in subsidiaries.

Personnel

The average number of employees was 1,761 (1,290), an increase of 471 from the previous year. This increase is mainly due to the addition of hotel operations and full-scale operations at the Norwegian destinations after restrictions were lifted.

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 31 May 2022, and they are also the principal owners of Peab with which SkiStar has a business relationship. Purchases from Peab during the nine-month period amounted to SEK 43 (244) million. The outstanding liability to Peab was SEK 2 (33) million. Sales to Peab amounted to SEK 1 (4) million and the outstanding receivable was SEK 0 (0) million.

Purchases from associated companies during the nine-month period amounted to SEK 152 (50) million and sales to associated companies amounted to SEK 7 (10) million. Net receivables from associates totalled SEK 12 (179) million, SEK 21 (178) 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 report.

Parent company

Net sales for the Parent Company totalled SEK 2,714 (2,085) million during the period. Net investments amounted to SEK 392 (140) million.

Outlook for 2021/22

SkiStar's major investment in the summer season with the SkiStar Sports & Adventures concept is heading into its second year, with more new activities at our destinations, not least at Stockholm Hammarbybacken. The booking situation for summer is better than ever: up nine percent

measured as the number of overnight stays booked through SkiStar compared with the same period the previous year.

Looking ahead to 2022/23

The effect of the uncertain economic situation makes it more difficult to assess the outlook for household finances as we move into 2022/23. It can be noted that more interest rate increases and higher electricity and fuel prices are expected, while the staycation trend is continuing in all markets in Scandinavia – something to which this summer's demand testified.

As a result of the global situation and a negative calendar effect in the Christmas/New Year period, demand is more hesitant during these holiday weeks for the coming winter season. Compared with the same period last year, when society was impacted by travel restrictions and Covid-related limitations, bookings for 2022/23 are somewhat weaker: down eight percent.

It is worth noting that the booking volume is 20 percent higher compared with the same period before the 2019/20 season, that is, the most recent comparably normal season before the pandemic struck. The sustained strong interest in alpine skiing and mountain holidays in Scandinavia all year round means we are cautiously looking forward to the coming seasons.

As previously communicated, operational investments planned for the next financial year total SEK 555 million, of which SEK 174 million is for two chair lifts in Åre, where a major initiative to modernise and wind-proof SkiStar Åre is underway. In addition, SEK 384 million is being invested in extensive upgrades and modernisations with an extra focus on snow capacity.

In addition to the communicated investment budget, SkiStar will further increase investments for the next financial year by SEK 67 million, mainly relating to summer activities at our destinations.

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/nine-month period Activity & Recreation

• SkiStar wants more people to be able to enjoy the ski slopes, with a stable basic training that makes everyone feel safe and secure. During the winter season 2021/22, over 95,000 (58,000) children and adults participated in SkiStar's ski school training.

• To make it possible for more children to discover the mountains, skiing, the ski school and ski rentals are free for children up to the age of six during Valle's Winter Weeks. More than 41,000 (25,000) children attended SkiStar's ski schools during the 2021/22 winter season.

Ecosystem & Impact

• A collaboration with Keep Sweden Tidy and Keep Norway Beautiful was launched during the previous quarter. SkiStar conducted a joint cleaning day at all destinations on 31 May and collected over six tonnes of litter during the day.

• To further reduce the company's CO2 emissions, the first mass-produced electric snowmobiles in the world have now been introduced. Presented first in Sälen. For the entire operation, this transition means reduced emissions of 11 percent during a winter season.

• During the quarter, SkiStar entered into an agreement to continue developing electric snow groomers and will use an electric snow groomer during the winter season to develop it further together with the supplier.

• Promoting a circular economy is an important aspect of SkiStar's ability to achieve its climate goals. SkiStar's accommodation agency and ski and bicycle rental are two examples of circular parts of the business. During the winter season, more than 360,000 ski packages were rented out – an increase of 66 percent compared to the previous winter season.

Dialogue & Interaction

• SkiSar won the HSMAI* Awards for Sustainability Initiative of the Year during the quarter, thanks to our clear sustainability strategy and transition to renewable fuels in operations at our Norwegian destinations too. *Hospitality Sales and Marketing Association International

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 56,538 on 31 May 2022, which is an increase of 4,695 (nine 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 160.60 on 31 May 2022.

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

  • 10/03/2022 Invitation to conference call with web presentation of SkiStar AB's Half-Year Report 2021/22.
  • 17/03/2022 SkiStar Half-Year Report September 2021-February 2022.
  • 10/06/2022 Invitation to conference call with web presentation of SkiStar AB's interim report for the third quarter 2021/22.

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

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 Mar-31 May
9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
3 MONTHS
1 Mar-31 May
9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21 2020/21 SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21 2020/21
Operating Revenue 1,535,645 1,023,345 3,868,204 2,504,955 2,750,514 Other Comprehensive Income
Income Other income 2,332 910 22,851 14,905 70,343 Items that may be reclassified to profit or loss
Total operating income 1,537,977 1,024,255 3,891,055 2,519,860 2,820,857 Change in fair value of cash flow hedges for the
period
1,704 2,662 5,055 6,757
Operating Goods for resale -351,829 -271,879 -906,178 -637,291 -683,977 Deferred tax on cash flow hedges -375 -586 -1,112 -1,407
Expenses Other external expenses -266,481 -162,747 -841,815 -536,185 -667,944 Exchange differences on translation of foreign ope
rations for the period
-14,230 9,654 22,678 3,064 3,351
Personnel costs -276,304 -195,527 -725,633 -550,586 -653,423 Other comprehensive income for the period -14,230 10,983 24,754 7,007 8,701
Cost of sold interests in accommodation/exploita
tion asset
-1,742 -90,991 -4,847 -153,634 -219,002
Share in profit/loss of joint ventures/associates 18,622 26,581 39,875 21,327 37,212 Total comprehensive income for the period 424,712 50,136 901,239 160,433 242,334
Depreciation/amortisation of tangible and intan
gible fixed assets
-113,502 -203,916 -319,016 -386,794 -536,074
Reversal of previous write-down 15,688 Profit/loss for the period attributable to:
Capital gain on property transaction 198,104 Shareholders of the Parent 438,899 46,810 878,318 170,288 238,119
Operating profit/loss 546,741 125,775 1,149,129 276,697 295,754 Non-controlling interests 42 -7,657 -1,832 -16,863 -4,487
Net financial items 14,571 -13,621 -14,775 -25,538 -49,579 Profit/loss for the period 438,942 39,153 876,485 153,426 233,633
Profit/loss before tax 561,312 112,154 1,134,353 251,160 246,174
Tax -122,370 -73,001 -257,868 -97,734 -12,542 Comprehensive income for the period attributable to:
Profit/loss for the period 438,942 39,153 876,485 153,426 233,632 Shareholders of the Parent 424,878 57,584 901,410 177,780 247,284
Non-controlling interests -166 -7,448 -171 -17,347 -4,951
Total comprehensive income for the period 424,712 50,136 901,239 160,433 242,334
Earnings per share, SEK 5.60 0.60 11.21 2.17 3.04

Number of shares outstandig at the end of the period 78,376,056 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 78,376,056

Condensed consolidated statement of financial position

ASSETS, SEK THOUSANDS 31 May 2022 31 May 2021 31 Aug 2021 EQUITY AND LIABILITIES, SEK THOUSANDS 31 May 2022 31 May 2021 31 Aug 2021
Non-current assets Equity Share capital 19,594 19,594 19,594
Intangible assets 192,922 184,721 178,112 Other contributed capital 397,573 397,573 397,573
Property, plant and equipment 3,778,098 3,967,526 3,611,397 Reserves -54,140 -66,023 -64,399
Right of use assets 2,034,812 593,013 1,413,661 Retained earnings, including profit/loss for the
period
3,179,749 2,337,706 2,405,537
Investments in joint ventures/associates 803,406 305,628 762,568 Equity attributable to shareholders of the Parent 3,542,776 2,688,850 2,758,305
Other investments and securities held as non-current
assets
39,341 33,904 33,784 Non-controlling interests 2,042 3,274 15,720
Other non-current receivables 49,599 241,676 72,890 Total equity 3,544,818 2,692,124 2,774,025
Total non-current assets 6,898,179 5,326,467 6,072,412
Non-current liabilities
Current assets Liabilities to credit institutions 878,140 1,809,153 1,147,090
Inventories 265,648 181,255 198,674 Provisions for pensions 15,627 14,044 14,535
265,648 181,255 198,674 Long-term lease liabilities* 1,767,650 533,765 1,372,010
Trade receivables 49,394 21,724 30,576 Other provisions 245 144
Tax receivables 128,080 116,940 72,064 Derivatives 13,132 15,416
Other current receivables 61,757 49,775 67,953 Deferred tax liabilities 172,710 171,881 126,448
Prepaid expenses and accrued income 88,639 65,842 97,728 Total non-current liabilities 2,834,127 2,542,220 2,675,643
Derivatives 35,184 Current liabilities
Assets held for sale 605,387 308,034 Liabilities to credit institutions 376,546 436,793 563,670
363,054 859,667 576,355 Trade payables 183,712 113,732 154,354
Tax liabilities 274,988 143,337 63,825
Cash & cash equivalents 224,204 67,523 26,556 Short-term lease liabilities 121,441 69,057 93,294
Total current assets 852,906 1,108,445 801,585 Other current liabilities 223,424 153,251 280,838
TOTAL ASSETS 7,751,085 6,434,913 6,873,997 Liabilities held for sale 150,688 155,619
Accrued expenses and deferred income 192,028 133,710 112,729
Total current liabilities 1,372,140 1,200,568 1,424,329
Total liabilities 4,206,266 3,742,788 4,099,972
TOTAL EQUITY AND LIABILITIES 7,751,085 6,434,912 6,873,997

*) Rental contracts have been signed with Skiab Invest AB Group for the lease of hotel buildings and retail premises to which SkiStar will have access in the fourth quarter of the financial year 2021/22. The contracts run for ten years and are expected to generate a lease liability of SEK

74 million. The contracts 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

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 170,288 170,288 -16,863 153,426
Other comprehensive income for the period 3,599 3,943 7,542 -535 7,007
Comprehensive income for the period 3,599 3,943 170,288 177,830 -17,397 160,433
Transactions with non-controlling interests -28,833 -28,833
Closing equity, 31 May 2021 19,594 397,573 -62,618 -3,405 2,337,706 2,688,850 3,275 2,692,125
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 878,318 878,318 -1,832 876,485
Other comprehensive income for the period 21,065 2,076 23,092 1,662 24,754
Comprehensive income for the period 21,065 2,076 878,318 901,410 -171 901,239
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 May 2022 19,594 397,573 -54,219 79 3,179,798 3,542,776 2,042 3,544,818

Condensed consolidated statement of cash flows

3 MONTHS
1 Mar-31 May
9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21 2020/21
Operating activities Profit/loss after financial items 561,313 112,154 1,134,353 251,160 246,174
Adjustment for non-cash items 31,939 139,425 185,060 320,505 335,051
593,252 251,579 1,319,413 571,665 581,225
Tax paid -18,392 -32,285 -58,579 -91,009 -91,745
Changes in working capital -863,807 -312,535 32,936 177,230 209,022
Cash flow from operating activities -288,947 -93,241 1,293,770 657,886 698,502
Investing activities Acquisition of property, plant and equipment -180,874 -212,417 -515,047 -445,364 -581,817
Acquisition of subsidiaries - -95,729 -9,443 -107,640 -118,618
Sale of property, plant and equipment 2,012 3,283 5,306 4,717 4,717
Other investing activities 20,049 -4,852 2,252 -5,155 65,489
Cash flow from investing activities -158,813 -309,715 -516,932 -553,442 -630,229
Financing activities Proceeds from borrowings 190,011 153,228 511,535 455,185 557,453
Repayment of borrowings -315,563 -120,322 -917,558 -493,649 -521,239
Repayment of lease liabilities -14 786 -16,388 -62,520 -58,250 -110,606
Dividend paid -117 564
Cash flow from financing activities -140,338 16,518 -586,107 -96,714 -74,392
Cash flow for the period -588 098 -386,438 190,731 7,730 -6,119
Cash & cash equivalents at beginning of year 811,017 453,564 26,556 59,567 59,567
Exchange differences 1,285 396 6,917 225 -116
Cash & cash equivalents reported in assets held for sale -26,775
Cash & cash equivalents at end of period* 224,204 67,523 224,204 67,523 26,556

The Group's operating segments

3 MONTHS
1 Mar-31 May
9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21 2020/21
OPERATION OF MOUNTAIN RESORTS
External revenue 1,343,890 926,949 3,465,360 2,329,821 2,581,674
Internal revenue 16,445 4,854 39,622 18,376 25,676
Capital gains 7 19 12,770 325 325
Total operating income 1,360,342 931,822 3,517,751 2,348,521 2,607,676
External operating expenses -809,982 -633,922 -2,236,620 -1,742,651 -2,188,466
Costs from other segments -28,820 -17,286 -77,055 -52,264 -60,965
Capital losses -12,349
Share in profit/loss of joint ventures/associates 3,344
Profit/loss from investments in joint ventures and
associates
-2,890 -1,125 -2,814 -4,437 -4,751
Depreciation/amortisation -61,734 -174,025 -165,795 -303,543 -272,531
Operating profit/loss 456,917 105,514 1,023,118 245,626 84,306
Intangible assets 191,912 184,951 191,912 184,721 178,112
Property, plant and equipment 2,924,635 3,147,739 2,924,635 3,147,739 3,179,542
Financial assets 88,323 71,965 88,323 71,955 49,262
Operating loans 802,971 1,589,350 802,971 1,589,350 1,132,543
PROPERTY DEVELOPMENT & EXPLOITATION
External revenue 4,667 5,687 12,288 11,452 15,612
Exploitation revenue 52,767 91,599 66,231 177,319 184,744
Internal revenue 13,072 12,670 39,468 34,020 36,072
Capital gains 552 2,973 944 944
Total operating income 71,058 109,957 120,961 233,735 237,372
External operating expenses -15,084 -18,948 -45,806 -47,549 -60,887
Costs from other segments -1,330 -238 -2,338 -132 125
Costs of sold exploitation assets -1,742 -90,991 -4,847 -153,634 -155,380
Capital losses -392 -1,425 -1,379 -4,224 -4,224
Profit/loss from investments in joint ventures and
associates
21,011 27,706 42,189 25,764 38,620
Depreciation/amortisation -7,184 -8,003 -20,009 -19,296 -24,029
Operating profit/loss 66,338 18,058 88,771 24,663 31,597
Property, plant and equipment 853,018 1,353,626 853,018 1,353,626 713,698
Financial assets 804,101 510,302 804,101 510,302 819,979
Operating loans 451,715 677,760 451,715 677,760 578,217
3 MONTHS
1 Mar-31 May
9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21 2020/21
OPERATION OF HOTELS
External revenue 137,307 330,405 37,559
Exploitation revenue 105
Internal revenue 1,551 1,389
Capital gains 1,208
Total revenue 138,964 333,002 37,559
External operating expenses -112,709 -301,875
Costs from other segments -5,103 -1,328 -909
Capital losses -815 -1,208
Profit/loss from investments in joint ventures and
associates
-815
Depreciation/amortisation -10,170 -1,303
Operating profit/loss 19,522 18,421 -27,653
Intangible assets 1,009 1,009
Property, plant and equipment 204,369 204,369 26,192
Internal revenue -30,966 -17,524 -80,720 -52,396 -61,748
Internal costs 30,965 -17,524 80,720 -52,396 61,748
Consolidated revenue* 1,539,398 1,024,255 3,890,994 2,519,860 2,820,857
Consolidated operating profit/loss 542,776 123,572 1,130,310 270,289 88,251
Consolidated intangible assets 192,922 184,951 192,922 184,721 178,112
Consolidated property, plant and equipment 3,982,022 4,501,365 3,982,022 4,501,365 3,919,432
Consolidated financial assets 892,424 582,527 892,424 582,257 869,242
Consolidated operating loans 1,254,686 2,267,110 1,254,686 2,267,110 1,710,760

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 Mar-31 May
9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
2021/22 2020/21 2021/22 2020/21 2020/21
Operating profit according to segment report 542,776 123,572 1,130,310 270,289 88,251
Reversal of leasing cost attibuted to IFRS 16 43,617 24,140 125,676 70,362 97,275
Depreciations attributable to IFRS 16 -39,652 -21,938 -104,131 -63,955 -87,876
Reversal of lease depreciation in connection with sale of
subsidiaries
-2,726
Capital gain on property transaction 198,104
Operating profit according to consolidated comprehen
sive income
546,741 125,775 1,149,129 276,697 295,753

Condensed income statement - parent company

3 MONTHS
1 Mar-31 May
9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 2021/22 2020/21 2020/21
Operating income Revenue 1,058,784 843,480 2,713,773 2,084,765 2,240,680 Other comprehensive income
Other operating income 944 647 6,646 4,482 6,502 Items that may be reclassified to profit
Total operating income 1,059,728 844,127 2,720,419 2,089,247 2,247,183 or loss
Operating expenses Goods for resale -259,125 -225,534 -655,459 -551,310 -592,437 Change in fair value of cash flow hed
Other external expenses -222,996 -150,700 -698,518 -523,077 -676,334
Personnel costs -190,547 -147,743 -482,759 -416,466 -483,881 Other comprehensive income for the
Cost of sold interests in accommodation/
exploitation
-50 -29,987 -50 -29,987 -30,107
Depreciation/amortisation of assets -46,200 -38,725 -125,955 -116,246 -159,520 Total comprehensive income for the
Operating profit/loss 340,810 251,438 757,678 452,162 304,904
Net financial items 22,734 -148,121 23,364 -152,509 -155,394
Profit/loss after net financial items 363,543 103,317 781,042 299,652 149,511
Appropriations -3,541
Profit/loss before tax 363,543 103,317 781,042 299,652 145,969
Tax -72,603 -56,974 -157,833 -99,627 -60,917
Profit/loss for the period 290,941 46,343 623,210 200,025 85,052
3 MONTHS
1 Mar-31 May
9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
SEK THOUSANDS 2021/22 2020/21 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 hed
ges for the period
1,704 2,662 5,055 6,757
Deferred tax on cash flow hedges -375 -586 -1,112 -1,407
Other comprehensive income for the
year
1,329 2,076 3,943 5,350
Total comprehensive income for the
year
290,941 47,672 625,286 203,968 90,401
EQUITY AND LIABILITIES, SEK THOUSANDS 31 May 2022 31 May 2021 31 Aug 2021
company 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
ASSETS, SEK THOUSANDS 31 May 2022 31 May 2021 31 Aug 2021 -Non-restricted equity Share premium reserve 4,242 4,242 4,242
Non-current assets Intangible assets 77,185 76,952 72,782 Retained earnings 785,730 814,838 816,167
Property, plant and equipment 1,949,214 1,727,716 1,747,366 Profit/loss for the year 623,210 200,024 85,052
1,413,182 1,019,103 905,460
Financial assets Investments in Group companies 248,375 204,319 201,417 Total equity 1,462,834 1,068,756 955,112
Investments in joint ventures/associates 2,770 2,812 2,812
Other investment and securities held as non-cur
rent-assets
24,591 19,211 19,091 Non-current liabilities
Other non-current receivables 25,607 14,888 13,715 -Non-current interest-bearing lia
bilities
Liabilities to credit institutions 483,485 450,235 437,735
Receivables from Group companies 195,750 -Provisions Provisions for pensions 15,627 14,044 14,535
Total non-current assets 2,523,491 2,045,897 2,057,181 Other provisions 101
Current assets -Non-current non-interest-bearing
liabilities
Derivative liabilities 8,973 10,494
-Inventories Goods for resale 114,549 84,692 95,553 Deferred tax liabilities 150,818 150,364 148,798
114,549 84,692 95,553 Total non-current liabilities 649,930 623,717 611,562
-Current receivables Trade receivables 34,535 12,040 7,589 -Current liabilities Liabilities to credit institutions
Receivables from Group companies 704,222 761,233 638,659 Liabilities to Group companies 12,000
1,102,320
216,963
769,746
145,491
836,198
Tax receivables 109,271 102,237 60,099 Trade payables 132,699 74,568 94,705
Other current receivables 44,639 34,208 25,832 Other current liabilities 337,539 250,568 237,133
Derivatives 21,020 Accrued expenses and deferred income 134,904 96,223 72,879
Prepaid expenses and accrued income 77,167 59,465 67,382 Total current liabilities 1,719,462 1,408,068 1,386,407
990,853 969,182 799,561 Total liabilities 2,369,392 2,031,785 1,997,968
TOTAL EQUITY AND LIABILITIES 3,832,226 3,100,542 2,953,081
-Cash and cash equivalents Cash and bank balances 203,332 771 786

Condensed balance sheet - parent company

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

Receivables from Group companies 195,750
Total non-current assets 2,523,491 2,045,897 2,057,181
Current assets
-Inventories Goods for resale 114,549 84,692 95,553
114,549 84,692 95,553
-Current receivables Trade receivables 34,535 12,040 7,589
Receivables from Group companies 704,222 761,233 638,659
Tax receivables 109,271 102,237 60,099
Other current receivables 44,639 34,208 25,832
Derivatives 21,020
Prepaid expenses and accrued income 77,167 59,465 67,382
990,853 969,182 799,561
-Cash and cash equivalents Cash and bank balances 203,332 771 786
Total current assets 1,308,735 1,054,645 895,899
TOTAL ASSETS 3,832,226 3,100,543 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 2020/21
Revenue*, SEK thousand 3,868,204 2,504,955 2,631,968 2,566,474 2,352,052 2,750,514
Operating income*, SEK thousand 3,891,055 2,519,860 2,639,852 2,577,072 2,364,195 2,820,857
Profit/loss before tax, SEK thousand 1,134,352 251,160 485,129 802,161 752,638 246,174
Profit/loss after tax, SEK thousand 876,484 153,426 387,329 666,888 603,096 233,633
Cash flow from operating activities,
SEK thousand
1,293,770 657,886 710,657 918,268 810,418 698,502
Total cash flow, SEK thousand 190,731 7,730 -7,471 -2,989 -26,495 -6,120
Return on:
-capital employed, % 19 6 12 21 21 6
-equity, % 28 6 15 25 26 9
-total assets, % 16 5 10 18 17 5
Gross margin, % 37 22 30 40 40 19
Operating margin, % 30 11 20 32 32 10
Net margin, % 29 10 18 31 32 9
Equity/assets ratio, % 46 42 44 56 53 40
2021/22 2020/21 2019/20
Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Q 4
Revenue*, SEK thousand 1,535,645 2,177,645 154,914 245,559 1,023,345 1,327,861 153,749 162,198
Operating income*, SEK thousand 1,537,977 2,195,371 157,707 300,997 1,024,255 1,339,531 156,074 199,111
Profit/loss before tax, SEK thousand 561,312 919,883 -346,842 -4,986 112,154 445,970 -306,965 -135,070
Profit/loss after tax, SEK thousand 438,942 752,419 -314,876 80,206 39,153 365,183 -250,911 -100,615
Cash flow from operating activities, SEK thou
sand
-288,947 1,236,797 349,273 40,615 -93,241 660,156 90,971 23,989
Total cash flow, SEK thousand -588,097 706,771 72,057 -13,851 -386,437 422,457 -28,289 -4,144
Gross margin, % 43 47 neg 42 22 40 neg neg
Operating margin, % 36 43 neg 6 12 33 neg neg
Net margin, % 36 42 neg -2 11 33 neg neg
1 Sep - 31 May Full Year
DATA PER SHARE 1) 2022 2021 2020 2019 2018 2020/21
Share price, SEK 160.60 132.80 103.60 116.00 95.60 182.00
Average number of shares 78,376,056 78,376,056 78,376,056 78,376,056 78,376,056 78,376,056
Earnings, SEK 11.21 2.17 4.94 8.52 7.68 3.04
Cash flow from operating activities, SEK 16.51 8.39 9.07 11.72 10.34 8.91
Share price/cash flow, times 9.7 15.8 11.4 9.9 9.2 20.4
Equity, SEK 45 34 34 36 32 35
Price/equity, % 355 387 306 323 297 514
2021/22 2020/21 2019/20
Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Q 4
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 5.60 5.61 -3.97 0.87 0.60 4.70 -3.12 -1.23
Cash flow from operating activities, SEK -3.73 15.78 4.46 0.52 -1.19 8.42 1.16 0.31
Equity, SEK 45 40 31 35 34 34 29 33

*) 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).

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 3 Q 3 Q 3 Q 3 Q 3
Profit after financial items 1,134,352 251,160 485,129 802,161 752,638
Finance income 23,917 25,744 39,267 42,821 43,857
Finance costs -38,693 -51,282 -76,315 -66,335 -57,930
Net financial items -14,775 -25,538 -37,048 -23,514 -14,073
Profit after financial items, plus finance costs 1,173,045 302,441 561,444 868,496 810,568
2021/22 2020/21 2019/20 2018/19 2017/18
CAPITAL EMPLOYED Q 3 Aug 2021 Q 3 Aug 2020 Q 3 Aug 2019 Q 3 Aug 2018 Q 3 Aug 2017
Assets 7,751,085 6,873,998 6,434,913 6,023,251 6,044,193 5,065,776 4,991,665 4,870,568 4,761,478 4,507,860
Non-current non-interest-bearing liabilities 172,710 142,008 185,259 225,206 232,581 226,546 199,306 221,113 224,795 190,107
Current non-interest-bearing liabilities 874,152 767,365 694,719 562,156 524,481 478,637 549,128 537,253 508,195 455,254
Total non-interest-bearing liabilities 1,046,862 909,373 879,978 787,361 757,062 705,182 748,434 758,366 732,990 645,361
Capital employed 6,704,223 5,964,625 5,554,935 5,235,889 5,287,132 4,360,594 4,243,230 4,112,202 4,028,488 3,862,499
Average capital employed 6,334,424 5,395,412 4,823,863 4,177,716 3,945,493
Return on capital employed 19% 6% 12% 21% 21%
RETURN ON EQUITY
Equity 3,544,819 2,774,026 2,692,123 2,560,524 2,652,296 2,602,064 2,812,375 2,421,089 2,524,985 2,090,251
Average equity 3,159,422 2,626,324 2,627,180 2,616,732 2,307,618
Profit after tax 876,484 153,426 387,329 666,888 603,096
Return on equity 28% 6% 15% 25% 26%
RETURN ON TOTAL ASSETS
Total assets 7,751,085 6,873,998 6,434,913 6,023,251 6,044,193 5,065,776 4,991,665 4,870,568 4,761,478 4,507,860
Average total assets 7,312,541 6,229,082 5,554,985 4,931,116 4,634,669
Return on total assets 16% 5% 10% 18% 17%

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 9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
9 MONTHS
1 Sep-31 May
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 2020/21
Non-current interest-bearing liabilities to credit institutions 8,78,140 1,809,153 1,164,694 Equity 3,590,509 2,678,263 2,784,037
Long-term leasing liabilities 1,767,650 533,765 1,354,406 Total assets 5,920,196 5,860,849 5,460,336
Provisions for pensions 15,627 14,044 14,535 Equity/assets ratio, % excluding IFRS 16 61 46 51
Current interest-bearing liabilities to credti institutions 376,546 436,793 572,101
Short-term lease liabilities 121,441 69,057 84,863
Net interest-bearing liabilities 3,159,405 2,862,812 3,190,599
Other non-current receivables 49,599 241,676 72,890
Non-interest-bearing part of non-current receivables -1,750 -160,771 -35,519
Interest-bearing current receivables 1,915 12,441 12,441
Cash and cash equivalents 224,204 67,523 26,556
Interest-bearing receivables 273,968 160,869 76,368
Financial net debt (interest-bearing receivables - net inte
rest-bearing liabilities)
2,885,437 2,701,943 3,114,231

NOTES

Pledged assets and contingent liabilities

PLEADGED ASSETS, SEK THOUSAND 31 May 2022 31 May 2021 31 Aug 2021
Group* 2,878,420 2,313,688 2,046,810
Parent Company 533,014 560,630 531,923
CONTINGENT LIABILITIES, SEK
THOUSAND
Group 399,376 617,019 473,963
Parent Company 1,236,932 1,782,769 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 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.

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 Mar-31 May
9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
2021/22 2020/21 2021/22 2020/21 2020/21
OPERATION OF MOUNTAIN
RESPORTS
SkiPass 689 460 1,712 1,111 1,143
Accommodation 353 264 881 609 640
Ski rental 82 49 213 120 127
Ski school/Activities 26 19 61 41 41
Sporting goods outlets 74 54 255 185 207
Restaurants 30 63 7
Property services 45 50 112 102 113
Other 43 31 163 149 240
Total Operation of Mountain
Resorts
1,342 927 3,461 2,317 2,517

PROPERTY DEVELOPMENT AND EXPLOITATION Total Property Development and Exploitation 57 97 78 188 197

OPERATION OF HOTELS
Accommodation 96 242 26
Property 5 10 1
Restaurants 29 60 8
Other 7 17 2
Total Operation of Hotels 137 329 37
Group total 1,536 1,023 3,868 2,505 2,751

DISTRIBUTION OF REVENUE PER SEGMENT AND COUNTRY,

SEK MILLION

3 MONTHS
1 Mar-31 May
9 MONTHS
1 Sep-31 May
FULL YEAR
1 Sep-31 Aug
REVENUE PER COUNTRY 2021/22 2020/21 2021/22 2020/21 2020/21
Sweden
- Operation of Mountain Resorts 1,020 838 2,617 2,019 2,164
- Property Development and
Exploitation
57 71 78 89 98
- Operation of Hotels 30 76 3
Norway
- Operation of Mountain Resorts 322 92 823 285 333
- Property Development and
Exploitation
26 99 99
- Operation of Hotels 107 253 34
Austria 1) -4 20 13 20
Group total* 1,536 1,023 3,868 2,505 2,751

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).

Presentation of the report

SkiStar will present this report via webcast on 17 June 2022, 10:00 a.m. CEST. Find the dial-in information and link to the webcast on www.skistar.com/se/corporate.

Financial information

Financial year 2021/22

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

  • Year-End Report, Q4, 1 September 2021-31 August 2022, 4 October 2022, at 07.15 a.m. CET.
  • Annual and Sustainability Report, 1 September 2021-31 Augusti 2022, 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.

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.

The CEO assures 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, 17 June 2022

Stefan Sjöstrand CEO

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 17 June 2022 07.15 a.m. CEST.

AUDITOR'S REPORT

SkiStar AB (publ), reg. no 556093-6949

Introduction

We have reviewed the condensed interim financial information (interim report) of Skistar AB (publ) as of 31 May 2022 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, 17 June 2022 PricewaterhouseCoopers AB

Camilla Samuelsson Authorized Public Accountant

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/.

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 91 SÄLEN Reg. No: 556093-6949 Tel: +46 280 880 50 E-mail: [email protected] www.skistar.com

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