Embed Size (px)
Citation preview
MEMORABLE WINTER EXPERIENCESANNUAL REPORT 2012/13
CONTENTS
ANNUAL REPORTADMINISTRATION REPORT 52
DEFINITIONS 54
FIVE-YEAR OVERVIEW 55
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
56
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 57
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 58
CONSOLIDATED STATEMENT OF CASH FLOW 59
PARENT COMPANY INCOME STATEMENT 60
PARENT COMPANY BALANCE SHEET 61
PARENT COMPANY STATEMENT
OF CHANGES IN EQUITY 62
PARENT COMPANY CASH FLOW STATEMENT 63
NOTES TO THE FINANCIAL STATEMENTS 64
SIGNATURES 82
AUDIT REPORT 83
CORPORATE GOVERNANCECORPORATE GOVERNANCE REPORT 84
BOARD OF DIRECTORS 88
FINANCIAL INFORMATION 89
MANAGEMENT 90
ARTICLES OF ASSOCIATION, ADDRESSES 91
OPERATIONSTHE PAST YEAR 4
OUR HISTORY 5
COMMENTS FROM MATS 7
OUR INDUSTRY 8
OPERATIONS 12
VISION, GOALS AND STRATEGIES 14
MARKETING AND SALES 16
EMPLOYEES 20
OUR RESPONSIBILITY 22
RISKS AND OPPORTUNITIES 24
SHARE PERFORMANCE 28
SHAREHOLDER BENEFITS 31
BUSINESS AREA DESTINATIONS 32
• SWEDEN 34
• NORWAY 35
• SÄLEN 36
• ÅRE 38
• VEMDALEN 40
• HEMSEDAL 42
• TRYSIL 44
BUSINESS AREA PROPERTY DEVELOPMENT 46
2
3
SKISTAR’S VISION IS TO CREATEMEMORABLE WINTER EXPERIENCES
AS THE LEADING OPERATOROF EUROPEAN ALPINE DESTINATIONS
THE PAST YEAR4
THE PAST YEAR
SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR
After two years of decline, the past winter marked a trend reversal and a step towards achieving our profitability targets again.
Higher volumes and higher revenues were generated during all holiday periods – Christmas/New Year, the winter sports school holidays and the Easter holidays.
The periods between New Year and the win-ter sports holidays, and between the winter sports holidays and Easter were somewhat weaker than the year before. Limited oppor-tunities to obtain leave from school are one reason behind the change in behaviour.
Net sales increased to MSEK 1,665 (1,552), the income before tax increased to MSEK 160 (139) and the income after tax decreased to MSEK 137 (157). Earnings per share were SEK 3.49 (3.99). Items affect-ing comparability comprise an additional charge of MSEK 12 relating to Radisson Blu in Trysil and MSEK 13 in repayments of social security contributions following a favourable outcome of a tax case. Excluding these items, the increase in income before tax was MSEK 46 (37%). The tax expense for the year is significantly higher than last year due to the fact that SkiStar’s tax loss carry-forwards were fully recognised in the previous year’s accounts.
Through consolidation, the Company’s finan-cial position has strengthened, as reflected in an equity/assets ratio of 38% (36).
Following a favourable ruling by the Land and Environmental Court, plans for the construction of an airport between Sälen
and Trysil have moved forward, and work on exploring opportunities to obtain public-sector funding is currently underway.
SIGNIFICANT EVENTS AFTER THE END OF THE FINANCIAL YEAR Booking volumes for the 2013/2014 winter season are 1% higher compared with the same period the year before.
Continued favourable calendar conditions with a maximum number of free days over the Christmas and New Year period and a late Easter, which means a long high season but at the same time only one big Easter week.
More activities aimed at new customer seg-ments, such as groups and conferences, are expected to increase the number of guests during weaker periods.
As a result of increased activity in Property Development, some 90 apartments and 80 building plots will be sold. Starting with the first interim report, a clearer distinction will be made between Destinations and Property Development, with separate income state-ments, balance sheets and key performance indicators.
It is proposed that the dividend remain unchanged at SEK 2.50 per share.
In its budget proposition, the Swedish Government has proposed to remove the tax exemption rules applying to specially assessed properties. This means that from fiscal year 2014/15 onwards the full income in SkiStar’s Swedish business will be taxed.
THE YEAR IN FIGURES
2012/13 2011/12 +/- +/-, %
Net sales, MSEK 1,665 1,552 113 7%
Income before tax, MSEK 160 139 21 15%
Income after tax, MSEK 137 157 -20 -13%
Cash flow from operating activities, MSEK 399 311 88 28%
Earnings per share, SEK 3:49 3:99 -0.50 -13%
Dividend, SEK (proposed) 2:50, 2:50, 0.00 0%
Share price, 31 August, SEK 81:00, 81:25, -0.25 0%
Return, % 3.10 3.10 0 0%
Price-to-earnings ratio, times 23 20 3 15%
Equity, MSEK 1,482 1,457 25 2%
Equity/assets ratio, % 38 36 2 6%
Return on capital employed, % 6 5 1 20%
Return on equity, % 9 11 -2 -18%
Gross margin, % 26 27 -1 -4%
Operating margin, % 13 12 1 8%
Net margin, % 10 9 1 11%
Average no. of employees 1,085 1,051 34 3%
Definitions are found on page 54
5OUR HISTORY
OUR HISTORY
The brothers Erik and Mats Paulsson
purchase the ski resort Lindvallen
in Sälen.
1975/78
Trysil, Norway’s largest
ski resort, is acquired,
making SkiStar the
operator of the fi ve
largest ski resorts in
Scandinavia.
2005Lindvallen i Sälen AB is
listed on the Stockholm
Stock Exchange.
1994
Tandådalen and
Hundfjället AB is
acquired.
1997
Åre-Vemdalen AB is acquired.
1999
The Group
adopts the name
SkiStar AB.
2001
Hemsedal, Norway’s second
largest ski resort, is acquired.
2000
COMMENTS FROM MATS6
THE PAST YEARWe are pleased this year to have taken a major step towards once again achieving our profit-ability targets. Visitor numbers and sales have increased, primarily during the main holiday periods – Christmas/New Year and the winter sports and Easter school holidays. A combina-
tion of high occupancy rates in commercial beds and good use of private beds testifies to a strong interest in alpine holidays at SkiStar’s destinations. To further improve profitability, we need to attract more guests between the holiday periods, when spare capacity is high. Limited opportunities to obtain leave from
school between holidays are one reason why holiday travel is concentrated to the holiday periods.
Sales and earningsOur Destinations business area increased net sales by MSEK 108 (7%) to MSEK 1,659 and operating profit by MSEK 24 to MSEK 201. Booking volumes increased by 2% during the winter season compared with the previous year. The occupancy rate at Company-owned and SkiStar-arranged accommodation increased by 4 percentage points to 74%. The number of skier days, defined as one day’s skiing with a SkiPass, increased to 4.3 million (4.1). SkiPass revenues increased by MSEK 70 (8%) to MSEK 927. Our Property Development business area increased its operating profit by MSEK 6 to MSEK 18. Increased interest in buying private building plots resulted in an increase in sales profits by MSEK 17 to MSEK 38 while a SkiStar associated company, Radisson Blu Trysil, reported a larger deficit than previously, of which MSEK 12 was of a non-recurring nature. On a consolidated basis, external net sales increased by MSEK 113 to MSEK 1,665 while the income before tax grew by MSEK 21 to MSEK 160. The tax expense increased due to the fact that our tax loss carry-forward were fully recognised in the preceding financial year and because deferred tax assets were restated to take account of the Swedish Parliament’s decision to lower the corporate tax rate in Sweden to 22%. The consolidated income after tax decreased to MSEK 137 (157) as a result of the increased tax charge. Earnings per share decreased to SEK 3.49 (3.99), and the Board of Directors proposes that the Annual General Meeting resolve to approve a dividend payment of SEK 2.50 per share (2.50).
We are pleased that the Company has been strengthened financially, with an equity/assets ratio of 38% (36) and a cash flow after invest-ments of MSEK 255 (-11). Two of our financial targets have been achieved: organic growth at 7% (target: 3% above inflation) and the equity/assets ratio, as mentioned above (target: at least 35%). The operating margin increased to
COMMENTS FROM MATS
COMMENTS FROM MATS 7
13% (PY 12% and target 22%), the return on capital employed increased to 6% (PY 5% and target 11%) and return on equity decreased to 9% (PY 11% and target 16%).
FOCUS AREAS GOING FORWARDDeveloping our destinationsDeveloping our destinations is a continuous process aimed at ensuring the best possible experience for our guests. Prior to the season, we expect to invest MSEK 142 in our ski resorts, most of which relates to replacement investments, including a warming hut in Vem-dalen, improvements to snow making systems, a new surface lift in Sälen and a capital injec-tion in a company that is building three new chairlifts in Åre. The chairlifts and pistes that are being built and prepared in Åre will have a significant impact on capacity as well as the skiing experience, especially the two chairlifts that connect to each other, linking central Åre with the Björnen area via Fjällgården. Invest-ments in Property Development are expected to reach MSEK 38, comprising investments in replacements, the acquisition of shares in Hemsedal and renovation of apartments held for sale in Sälen, Vemdalen and Åre. The busi-ness area also has 80 unsold building plots.
MySkiStar – health and skiingSkiing and health go hand in hand! Some 117,000 guests have discovered our popular free service, MySkiStar. During the past season, we registered nearly 6.5 million lift rides and more than 1.5 billion vertical metres. This year, we will also be welcoming our youngest guests to enter the MySkiStar world, which means that the whole family can enjoy challenges and tasks, and locate other family members.
That spending time in the mountains is a healthy and invigorating experience is no longer just a cliché. In a survey carried out by HUI Research, 8 out of 10 Swedish skiers say they associate a skiing holiday with physical activity, health and pleasure. Skiing helps improve body strength, fitness, coordination, agility and balance. You also gain wonderful
memories that will stay with you long after your muscles have stopped aching, a fact that as many as 90% of Swedes travelling with children agree on.
Broader communication to reach more customer groupsIn addition to maintaining a strong market presence, we are now broadening our com-munication activities with the aim of reaching additional customer groups. Communications aimed at the family target group are being expanded through additional targeted messages – for families with older children, 12+, “SkiStar Snow Camps”. For groups of friends and couples, we are offering party packages with SkiPasses linked to tickets to various forms of entertainment; beginners are offered “SkiRookie”, and for the 55+ pleasure-seeker target group, we are tailoring packages with experienced ski guides. Younger children will be able to sample 26 new experiences and attractions in Valles Värld (“Valle’s World”) at all our destinations. A unique event, Valles Vinterveckor (“Valle’s Winter Weeks”), will be launched. Our Valle ski package includes spe-cially designed Valle skis, which participating children will be able to take with them when they go. Children will also be able to experi-ence Valle’s winter games during Valle’s Winter Week, where all children are winners.
Future growthExpanding in a market with limited growth is a challenge that we are strongly committed to meet. In the short term, this means that we need to regain the volumes that we have lost. Longer-term, as growth opportunities have been exhausted in our neighbouring markets, we will be expanding in our international markets.
Spending time “together” and ideally on an “active holiday with a healthy outdoors focus” are examples of clear social trends that benefit SkiStar’s business. Our ski resorts are the best possible arenas for offering these experiences, and there are good reasons to believe that these trends will endure.
We have strong hopes that Åre, in competi-tion with Cortina (ITA), will be awarded the honour of hosting the 2019 Alpine World Ski Championships, in connection with the Congress of the International Ski Federation (FIS) in Barcelona on 5 June 2014. As has been reported, the 2007 World Championships pro-vided a big push for investments and growth not only in Åre, but also at several other desti-nations. At the time of writing, discussions are also being held on the possibility of arranging the Winter Olympic Games in Sweden in 2022, where most events would take place in Stock-holm and all alpine disciplines except slalom in Åre. Although it is still a long way to go before a decision on a candidacy is taken, arranging the Winter Olympics in Stockholm/Åre would of course have a major impact on Swedish sports and on the country as a whole.
In March, the Land and Environmental Court issued a favourable ruling on the planned expansion of the airport in Sälen. Work on arranging funding is currently under-way, with the aim of having the airport up and running in time for winter 2015/16.
The Company’s management agreement with Andermatt expired in September. Discussions on a new agreement, which would have a stronger focus on marketing, sales and IT support, are ongoing.
CURRENT BOOKINGSInterest in booking winter holidays remains
strong. The combination of stronger economic activity and favourable weather conditions in the summer works in favour of SkiStar, as does the nice winter season that we experienced. The warm and sunny summer has had a negative impact on new bookings, however, although bookings have picked up again since September. In early October, booking volumes were 1% higher than the year before, and we are confident about the coming winter season.
See you on the slopes this winter!
Mats ÅrjesCEO
OUR INDUSTRY8
OUR INDUSTRYAlpine skiing is practiced on every continent.
THE GLOBAL TOURISM INDUSTRYTourism is one of the world’s largest industries. According to the UN World Tourism Organiza-tion (UNWTO), which publishes statistics on global tourism, the sector accounts for around 6% of total global exports of goods and services. In the service sector, tourism accounts for around 30% of exports. According to UNWTO, global tourism has increased by approximately 96% since 1995, in terms of the number of visits (tourist arrivals).
In 2012, tourist arrivals increased by 4% globally, to 1,035 million, while turnover in the tourism industry (tourism receipts) increased by 4% (in fixed prices) to USD 1,075 billion.
Europe is the most visited region, account-ing for over half of the world’s foreign visits. The most visited country is France, which attracts around 80 million tourist visits annually. In 2012, the number of visitors in Europe increased by 3%. Asia saw the strong-est growth in the number of visitors, with an increase of 7%, followed by Africa with 6% and America with 5%. The number of visitors in the Middle East fell by 5% and, despite gains in some countries, we have yet to see a reversal of the negative trend in this region. In line with longer-term trends, emerging markets saw a stronger growth rate, 4.1%, than the more mature markets, at 3.6%. Despite the challenges faced by the global economy, the volume of visits in 2013 is predicted to increase at a similar pace as in 2012, i.e. by 3-4%.
UNWTO’s long-term forecast envisages
an annual growth rate in visits of 4.1% up to 2020.
THE SWEDISH TOURISM INDUSTRYThe tourism industry is an important industry also in Sweden. Accounting for about 3% of GDP and employing more than 168,000, tourism makes a significant contribution to the Swedish economy. According to the Swedish Agency for Economic and Regional Growth, total tourist consumption in Sweden has increased by nearly 83.5% in current prices since 2000.
In 2012, total tourist consumption increased by 4.8% to SEK 275.5 billion. Of this, SEK 169 billion (61%) refers to tourist consumption by Swedes in Sweden. Swedes’ tourist consumption, broken down by private and business travel, grew by 2.8% to SEK 121.4 billion for private travel and by 4.1% to SEK 47.6 billion for business travel. Of the total tourist consumption, SEK 106.5 billion refers to foreign visitors’ consumption in Sweden. The figure, which includes both private and business travellers, represents an increase of 7.5% compared with 2011.
THE GLOBAL ALPINE MARKETPeople practice alpine skiing on every conti-nent. Around 2,100 ski resorts have been iden-tified around the world. The annual number of skier days has remained relatively stable, at around 400 million. Europe has the largest alpine market, with some 200 million skier
days a year (one day’s downhill skiing with a SkiPass is defined as one skier day).
North America is the second largest market, with just under 80 million skier days a year. The largest individual markets are the United States, France and Austria, with about 50-55 million skier days a year. The Nordic region – Sweden, Norway and Finland – accounts for around 17 million skier days a year.
Historically, the market has grown by around 2% a year, but with significant varia-tions among regions. Perhaps the fastest grow-ing ski market today is in Eastern Europe, both in terms of skier numbers and the construction of new ski resorts. A country which is currently experiencing a strong surge in interest in skiing is Russia. One reason behind the increase in the number of skier days is thought to be that the Russian resort of Sochi is set to host the Winter Olympics in 2014. Apart from an increased interest in skiing, this will of course also con-tribute to a sharp increase in investments in the run-up to the Games.
In most countries, ski resorts mainly attract skiers from the same country. The largest share of foreign visitors is in Andorra (95%), Austria (66%) and Switzerland (50%). In the United States and Canada, foreign skiers account for around 6% and 14%, respectively. In Sweden and Norway, the figure is 8%, and in Finland 17%. In countries like Japan, South Africa, India and Australia the proportion of foreign visitors is very low.
The leading players in the industry mainly
OUR INDUSTRY 9
operate locally, but the last few years have seen a number of cross-border partnerships and acquisitions. In Sweden, SkiStar has made acquisitions in Norway, and in France, Compagnie des Alpes (CDA), a listed corporate group, has acquired ski resorts in both Swit-zerland and Italy. Ownership of ski resorts is highly fragmented. Many are family-owned and many of the companies involved are small. In Austria, ownership is entirely dominated by small, privately owned companies. In Italy, there is a strong element of ownership by credit institutions while Switzerland and France have a few, larger limited companies with broad ownership, of which a couple are listed public companies. In Japan, ski resorts and lift systems normally form part of large, privately owned conglomerates, often with associated hotel operations. In Norway, the Hafjell and Kvittfjell ski resorts have merged their opera-tions to form a joint-owned company called Alpinco. In addition to SkiStar, Sweden is also home to Visionalis AB, for instance, which owns and manages Riksgränsen and Björkliden Fjällby AB (with operations in the Lapland destinations of Björkliden and Tärnaby). The North American market does not distinguish itself from the other markets, but is also heavily fragmented, although in recent years a restructuring process has been under way lead-ing to fewer and ever larger companies. Behind this trend is the possibility of achieving econo-mies of scale and the need to achieve a critical mass. Economies of scale can be achieved by coordinating purchasing activities, in opera-tions and maintenance, and in marketing and sales. Critical mass is achieved primarily through the acquisition of competitors. This is partly about building volume and partly about generating cash flows that are adequate to off-set investments in lifts, slopes and snowmaking systems, which can be very significant. Another driving force behind the restructuring of the industry is the desire of companies to establish a presence in additional geographical locations and thus reduce their weather dependency. CDA, for example, has gone one step further by investing in “warm weather services” such as golf resorts and amusement and theme parks. Various attempts are also being made to broaden the product range to include ski rental and ski schools, for example, with the aim of increasing the company’s share of its guests’ total expenditure.
THE 2012/13 SEASONNordic regionSkiPass sales increased in the Swedish market during the season. This is due to a combination of factors, of which favourable weather condi-tions in the winter, an improved economic climate and a slightly weaker Swedish krona (SEK) compared with the Danish krone (DKK) and euro (EUR) are seen as strong con-tributors. Another contributing factor was the calendar effect, with a small number of public holidays resulting in long holidays during the Christmas and New Year period.
According to the Swedish Ski Lift Organisa-tion (SLAO), SkiPass sales in Sweden grew by 12% to MSEK 1,267 million, excluding VAT, in winter 2012/13, compared with the previ-ous season. The average price increase was 3.3%. The number of skier days increased by around 8%, from 7.8 million to 8.5 million. In Norway, total SkiPass sales increased by almost 14% to NOK 980 million. The average price increase in Norway was 2.2%. The total num-ber of skier days increased from 5.2 million to 5.8 million. In Finland, SkiPass sales were EUR 58.5 million (51.2) and the number of skier days increased from 2.8 million to 2.9 million.
North AmericaThe number of skier days in the United States increased by 11% to 56.6 million (51.0), which is the largest year-on-year increase in 30 years. Despite a slow early season, many ski resorts experienced a strong Christmas holiday, with the trend remaining strong all through March, which means that the number of skier days per year is back to more normal visitor levels. At the national level, visitor numbers increased in all periods of the season, with the most signifi-cant increases occurring towards the end of the season. In North America, weekends account for more than half of the total number of skier days, which is in line with previous years. Snowboarders account for around a third of the total. There are significant local variations, however. Compared with Europe, the share of snowboarders in North America is high.
The AlpsIn the Alps, the total number of skiers increased somewhat over the past season. In France, however, the number of skier days in France remained unchanged at around 55 million. In Austria, the number of skier days increased by an impressive 8% to 54.2 mil-lion. In Switzerland, the number of skier days shrank marginally from 24.8 million to 24.7 million. In Germany, where guests, rather than skier days, are counted, the number of guests increased from 4.8 million to 5.0 million. As in North America and the Nordic countries, the largest ski resorts in the Alps account for a majority of sales. The 25 largest resorts are estimated to account for more than 60% of total revenues in the industry.
COMPETITIONSkiStar competes for people’s disposable income. This means that, in a broader sense, SkiStar is competing with the consumer discre-tionary, home decoration and other industries. In the travel industry, SkiStar competes mainly with sun and beach holidays and weekend city breaks. The availability of these kinds of holidays has increased over the last 15 years. One reason for this could be that, in contrast to the alpine skiing industry, the travel industry has low barriers to entry, resulting in a glut of competing companies, which puts pressure on prices and margins.
In the alpine skiing industry, the competi-
tors are other alpine ski resorts in Scandinavia and the Alps. Statistics indicate, however, that over the years the proportion of people who choose to go abroad to ski has remained large-ly unchanged. Moreover, SkiStar has strong and well-known brands as well as a strong distribution channel in the form of skistar.com, which is becoming ever more important in an increasingly cluttered media landscape. Thanks to its consistently robust financial position and strong cash flows, SkiStar is also able to invest continually in everything from marketing and sales systems and training programmes for employees to new, modern forms of accom-modation, lifts and snow-making facilities. This ensures that SkiStar’s alpine destinations always maintain a high quality compared with its competitors. SkiStar’s resorts also have good access to more densely populated areas due to their geographic proximity and the existence of reasonably priced rail, air and coach con-nections.
INTERNATIONAL COMPARISON OF SKIPASS PRICESThe UK company Snow24 produces an annual global comparison of SkiPass prices around the world. The figures show that SkiStar’s SkiPass prices are competitive in the international market. Generally speaking, it can be said that comparing ski resorts with similar facilities in terms of lift capacity and total length of slopes in kilometres, SkiPass prices in Switzerland, Canada and the US are considerably higher than elsewhere. In Italy, France, Austria and Germany, prices are roughly the same or some-what higher than SkiStar’s.
TRENDS ConsolidationIn recent years, the travel industry has under-gone major consolidation. As many travel companies have narrow margins, a high turn-over is crucial to ensuring that the company has sufficient resources for advertising and marketing. Competition for customers’ atten-tion is intense. The Internet is the only medium showing a rapid increase with regard to both marketing and sales.
Packaging and availabilityMany travellers are looking for a simple solu-tion and want an easy overview of content and costs, which requires that travel providers find good ways packaging their offering and making it available to customers. Increasingly, add-on products are pre-booked along with accommodation and travel. An example of this is all-inclusive offers, which are aimed at budget-conscious travellers who want to avoid thinking about unexpected expenses and just relax.
More activitiesA clear trend in the travel industry is that guests want to fit in more and have a wider variety of experiences during their holidays. At SkiStar’s destinations, this has translated into
OUR INDUSTRY10
TOURIST CONSUMPTION IN SWEDEN, current prices, SEK BILLIONS
Swedish leisure travellers
Foreign visitors
SEK billions
Source: NUTEK/SCB
0
20
40
60
80
100
120
2012201120102009200820072006200520042003
TOURIST VISITS globally, MILLIONS
Millions
500
700
900
1100
201220112010200520001995
Source: UNWTO (United Nations World Travel Organisation)
COMPARISON OF TOUR OPERATORS
SkiStar 2012/13 Ticket Privatresor 2012 Resia 2012
Sales, SEKm 1 706 2 916 3 314
Net sales, MSEK 1 665 251 600
Income after tax, MSEK 137 20 11
Operating margin, % 13 9 10
Employees 1 085 216 409
SKIPASS SALES AT ALPINE DESTINATIONS, SEK MILLIONS
Levi RukaIdre/Grövelfjäll/FjätervålenTrysil Hemsedal VemdalenÅreSälen
NOK/SEK is calculated at the exchange rate of 1:1 for 03/04 and 04/05, 1:13 for 06/07, 1:15 for 10/11, 1:18 for 05/06 and 07/08, 1:19 for
02/03 and 08/09, 1:22 for 09/10, 1:17 for 11/12 and 1:14 for 12/13. EURO/SEK is calculated at the exchange rate of 9:20 for 02/03 and
10/11, 9:10 for 03/04 , 9:45 for 04/05, 9:25 for 05/06 , 9:21 for 06/07, 9:40 for 07/08, 10:54 for 08/09, 9:30 for 09/10, 8:84 for 11/12
and 8:65 for 12/13
0
50
100
150
200
250
300
12/1311/1210/1109/1008/0907/0806/0705/0604/0503/0402/03
The familyDoing things together and convenience are key factors in a family holiday. More and more ski resorts have the family as their most important target group and are adjusting their offering accordingly. This takes the form of wider and flatter slopes, accommodation facilities located closer to the slopes, child-minding services, ski schools, swimming facilities, cross-country ski tracks, more comfortable accommodation and a choice between self-catering and restaurants. Another change is that surface lifts are being replaced with modern chairlifts that are reli-able, comfortable and have a higher capacity.
Segmentation by need and desireThe process of social segmentation continues, and this is having an impact on product and service development as well as marketing. In the context of increasingly fierce competition for people’s time and money, niche market-ing, themed holidays and specialisation are becoming increasingly important. This requires that service providers have an insight into and understand what it is that people long for.
Making snowMore money is being invested in snowmaking facilities, with the aim of reducing weather dependency. With a similar goal in mind, ski resorts in the Alps are investing in lifts and slopes at high altitudes, but investments in snowmaking facilities are increasing also in the Alps.
Product rangeThe leading players in the ski tourism industry are broadening their range of services to include ski schools, ski rental and sales of profile products, ski wear and equipment.
Social structural factorsFactors such as more leisure time and higher disposable incomes are generally favourable for the tourism industry. A parallel trend is a growing interest in fitness, outdoor activities and recreation, which is particularly favourable for the skiing industry.
More and older skiersAs the first major “ski generation” in Sweden learned to ski in the 1970s, skiers in the 55+ age group are likely to grow in number. Many people in this group still ski and plan to do so for many years to come. On the assumption that the number of children and young people that take up skiing will remain the same as in previous years, the total Nordic ski market will continue to grow.
feature ever more prominently in Swedes’ holiday plans. Travel agencies’ advertising campaigns and the mass media are focusing on health and wellness, training and outdoor activities. MySkiStar is an example of a service launched by SkiStar that aims to capitalise on and strengthen consumers’ interest in downhill skiing as a form of exercise and socialising. Read more about MySkiStar on page 17.
an increased range of activities, shopping and restaurants as well as significant investment in swimming pools, experience centres and other facilities.
Active holidaysGeneral interest in health and well-being has increased at the same time that the trend towards staying active while on holiday has grown. Sporting experiences and activities
4,284,000 SKIER DAYS ON THE NORDIC REGION’S
MOST POPULAR SLOPES
11OUR INDUSTRY
OPERATIONS12 OPEROPERATIOATIONSNS1212
91%
SKISTAR AB (PUBL)
FJÄLLFÖRSÄKRINGAR ABHAMMARBYBACKEN ABFJÄLLINVEST AB
FJÄLLINVEST
NORGE AS
SKISTAR NORGE AS
LEGAL ORGANISATION
OPERATIONSOperations have been divided into two business areas – Destinations and Property Development
SIGNIFICANT EVENTS DURING THE YEAR
After two years of decline, the past winter marked a trend reversal and a step towards achieving our profitability targets again.
Visitor numbers increased and higher volumes were generated during all holiday periods – Christmas/New Year, the winter sports holidays and the Easter holidays.
The periods between New Year and the winter sports holidays, and between the winter sports holidays and Easter were somewhat weaker than in the year before. Limited opportunities to obtain leave from school are one reason behind the change in behaviour.
Net sales increased to MSEK 1,665 (1,552), income before tax increased to MSEK 160 (139) and income after tax decreased to MSEK 137 (157). Earnings per share were SEK 3.49 (3.99). Non-recurring items comprise an additional charge of MSEK 12 relating to Radisson Blu in Trysil and MSEK 13 in repayments of social security contri-butions following a favourable outcome of a tax case. Excluding these items, the increase in income before tax was MSEK 46 (37%). The tax expense for the year is significantly higher than last year due to the fact that SkiStar’s tax loss carry-forwards
were fully recognised in the previous year’s accounts.
Through consolidation the Company’s financial position has strengthened, as reflected in an equity/assets ratio of 38% (36).
Following a favourable ruling by the Land and Environmental Court, plans for the construction of an airport between Sälen and Trysil have moved forward, and work on exploring opportunities to obtain public-sector funding is currently underway.
SIGNIFICANT EVENTS AFTER THE END OF THE YEAR
Bookings at 1 October were up 1% com-pared with the same date the year before.
In its budget proposition, the Swedish Government has proposed to remove the tax exemption rules applying to specially assessed properties. This means that from fiscal 2014/15 onwards the full income in SkiStar’s Swedish business will be taxed.
It is proposed that the dividend remain unchanged at SEK 2.50 per share.
LEGAL ORGANISATIONMost of our Destinations business area’s operations in Sweden are run by the Parent Company, SkiStar AB (publ). The operations
of our Property Development business area are run through Fjällinvest AB (which is 100% owned by SkiStar AB) with the wholly-owned subsidiary Fjellinvest Norge AS. SkiStar’s operations in Trysil and Hemsedal are run by SkiStar Norge AS. All subsidiaries in the Group are wholly-owned with the exception of Hammarbybacken AB, which is 91% owned by SkiStar AB.
OPERATIONAL ORGANISATIONDuring the financial year, SkiStar’s operations have been divided into two business areas and a number of corporate functions. The Destina-tions business area consists of two areas of operation: Sweden and Norway. The other business area is Property Development. During the financial year the management team con-sisted of the CEO, CFO, Marketing and Sales Director and three Destination Managers, one for Åre/Vemdalen, one for Norway and one for Sälen. After 25 years with the Company, SkiStar’s CFO and Executive Vice President, Magnus Sjöholm has decided to step down. Magnus will remain in his post until a succes-sor has been recruited and installed.
As of 1 September, the operational organisation has changed somewhat. Property Development will be organised under each Destination Manager, who will hold local
OPERATIONS 13OPEROPERATIOATIONSNS 1313
CEO / GROUP CEO
LANDDEVELOPMENT
DESTINATIONS SWEDEN
SKISTARVACATION CLUB
DESTINATIONS NORWAY
MARKETING / PR / SALES /ENVIRONMENT / CSR
ECONOMY / FINANCE / IR / OPERATIONALMANAGEMENT / ACCOUNTING / CM / PERSONNEL IT PURCHASING
PROPERTYDESTINATIONS /
TECHNICAL DEVELOPMENT
OPERATIVE ORGANISATION
GROUP OPERATING SEGMENTS, MSEK
Destinations
Sweden
Destinations
Norway
All
Destinations
Property
Development
Intra-segment
eliminations
Group
total
2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12
Income from external customers 1 145 1 064 514 487 1 659 1 551 47 22 - 1 706 1 573
Income from other segments 25 24 6 9 31 33 42 43 -73 -76 -
Operating expenses -847 -770 -371 -358 -1 218 -1 128 -25 -25 - -1 243 -1 153
Operating expenses from other
segments-51 -51 -21 -24 -72 -75 -1 -1 -73 76 - -
Income from associated
companies - - 1 1 1 1 -26 -9 - - -25 -8
Depreciation/amortisation -126 -129 -74 -76 -200 -205 -19 -18 - - -219 -223
Income for the segment 146 138 55 39 201 177 18 12 - - 219 189
Operating margin for the seg-
ment, % 12 13 11 8 12 11 20 18 - - 13 12
Revenues and earnings by operating segment 1 September 2012 – 31 August 2013. Central Group expenses have been allocated based on estimated benefits. As of 1 September 2011, the Group has applied a new structure for operational monitoring. The operating segments in the Destinations business area are defined as the countries in which SkiStar ope-rates, i.e. Sweden and Norway. The Property Development business area constitutes a separate operating segment.
DISTRIBUTION OF OPERATING INCOME AND EXPENSES, MSEK
Operating income 2012/13 2011/12 +/- +/- %
SkiPass 927 857 70 8%
Accommodation 205 202 3 1%
Ski rental 134 134 0 0%
Ski school 46 45 1 2%
Sporting goods outlets 70 70 0 0%
Property services 124 110 14 13%
Other 159 134 25 19%
Total operating income 1,665 1,552 113 7%
Operating expenses
Goods for resale -137 -139 2 -1%
Other external expenses -602 -559 -43 8%
Staff costs -504 -455 -49 11%
Total operating expenses -1,243 -1,153 -90 8%
responsibility. Starting with the first interim report for 2013/14, all properties will be reported separately from the destinations for Sweden and Norway, respectively, and for SkiStar as a whole.
CORPORATE FUNCTIONSTo make the best use of SkiStar’s combined resources and maximise the impact, a number of functions have been centralised (see the organisational chart below):
Accounting/Finance/IR/Operational Con-trol/Accounting/CM/Human Resources
Marketing/PR/Sales/Environment/CSR
IT Purchasing
PROPERTY DEVELOPMENTSkiStar’s Property Development business area is responsible for generating growth in accom-modation at SkiStar’s destinations, increasing the value of assets through development, pre-paring long-term development plans for future investments together with the destinations, building and developing our SkiStar Vacation Club together with Marketing/Sales, and creating business opportunities by acquiring existing accommodation facilities and develop-
able land. More information about SkiStar’s Property Development business area is found on pages 46-49.
DESTINATIONSOur Destinations business area is responsible for the operation of SkiStar’s alpine destina-tions and comprises the strategic product areas Alpine Skiing/Lifts/SkiPass, Accommodation, Ski Rental and Ski Schools, which lie at the heart of SkiStar’s concept. The business area is presented on pages 34-45.
14 VIS ION, GOALS AND STRATEGIES FOR SUCCESS
VISION, GOALS AND STRATEGIES FOR SUCCESSSkiStar aims to be the leading player in terms of concepts, an integrated approach and development.
VISION, GOALS AND STRATEGIES FOR SUCCESS 15
TARGET ACHIEVEMENT, FINANCIAL TARGETS
Outcome 2012/13 Goal Outcome 2011/12 Outcome 2010/11
Equity/assets ratio, % 38 >35 36 38
Return on capital employed, % 6 11 5 7
Return on equity, % 9 16 11 12
Operating margin, % 13 22 12 15
Organic growth above inflation, % 7 >3 -5 -8
VISIONSkiStar’s vision is to create memorable winter experiences as the leading operator of Euro-pean alpine destinations.
BUSINESS CONCEPTBy providing memorable winter experiences, SkiStar creates value for its guests, employees and other stakeholders, which in turn creates value for shareholders.
GOALSFinancial targetsTo enable a proactive strategy while balancing its operational risk, SkiStar aims to maintain a strong financial base. The target is an equity/assets ratio in excess of 35%. Based on current interest rates, the target return on equity is 16% and the target return on capital employed 11%. These targets have been defined in rela-tion to the yield on three-month treasury bills, which averaged 1.81% in the financial year 2012/13. The operating margin should exceed 22% over the long term.
Operational targetsSkiStar’s growth target is an annual organic growth rate that exceeds inflation by at least 3%, on top of any growth through acquisi-tions. Inflation in Sweden during the financial year was 0.1%.
Target achievementThe overall goal is to increase the value of our shareholders’ capital. During the 2012/13 finan-cial year, SkiStar’s share price declined by 0.3%. The Stockholm Stock Exchange all-share index (OMXS) gained 19% over the same period. A dividend payment of SEK 2.50 (2.50) per share has been proposed. The targets for growth and equity/assets ratio have been achieved, but not the targets for return on capital employed, return on equity and operating margin. To also achieve these targets, we will need to attract more guests between holiday periods. Limited opportunities to obtain leave from school between holiday periods have led to fewer guests. For the upcom-ing season, we will be increasing our focus on guest categories that are not affected by school holiday periods. Target achievement figures are shown in the table below. Information on the Group’s earnings performance during the finan-cial year can be found on pages 55-56.
STRATEGIESConcept and business model
SkiStar’s core business is alpine skiing, with a focus on the guests’ skiing experience. Our long-term goal is to run profitable and strategic operations in alpine skiing, ski schools, ski rental and accommodation in SkiStar’s own organisation at our various destinations.
Another aim is to develop activities which supplement our existing portfolio of services and add value for our guests as well as SkiStar. Examples of such activities include the sale of shares through SkiStar Vacation
Club, the sale of merchandise through SkiStar’s own UA brand and insurance solutions through SkiStar’s own insurance company, Fjällförsäkringar AB.
SkiStar works to ensure that all agents at our alpine destinations maintain high levels of quality and service in order to strengthen the destinations’ brands and give our guests a better experience.
Our Property Development business area shall, through active property development at SkiStar’s destinations, create new, more modern and attractive residential units while also generating profits through sales.
Operational strategies Well-managed products and services result in a higher percentage of returning guests. These, in turn, are our best marketers.
By providing a well-developed infra-structure, our guests should be able to find everything they need within walking distance. Accommodation and skiing areas should be linked to provide a wide range of accommodation near the lifts. A “Ski in – Ski out” concept enables our guests to become independent of their cars as a means of transport during their stay.
Developing the Group’s snowmaking sys-tems is a high priority objective. These are modernised and expanded continually to ensure that we offer good skiing conditions regardless of the amount of natural snow.
Our destinations have different profiles, and should therefore jointly attract large customer groups.
SkiStar works to ensure that there is a wide range of reasonably priced transport options for each destination, primarily by concluding agreements with external players and secondarily by offering our own transport solutions.
Leadership and service strategies SkiStar aims to ensure that it has a corpo-rate culture centred on learning, high stand-ards of performance, concern for others, an emphasis on the guest and pride in what we do. Our leadership should also encour-age an attitude of openness to change – to improve on previous improvements.
The service we provide to our guests should be continually improved. Our strategy for achieving these objectives is based on pro-fessional selection processes in recruitment activities coupled with training and continu-ous follow-up.
Our alpine destinations should be improved continually in dialogue with our guests and in response to their wishes, resulting in an
even higher number of satisfied and return-ing guests.
Efforts to improve access and make things easier and more convenient for our guests should always be in focus.
Marketing and sales strategies The primary purpose of the Company’s marketing and sales strategies is to increase the number and maximise the percentage of alpine skiers at SkiStar’s destinations.
The SkiStar brand and SkiStar’s destinations should be clearly profiled and their image strengthened through marketing and adap-tation to various target groups.
Coordination of sales through a single website and a single telephone number will enable increased cross-sales and better service as well as improved efficiency and optimisation of the range of accommoda-tion options at each of our destinations.
Increased advance sales will enable us to secure a higher portion of revenues at an early stage, even before the start of the season, thus reducing the risk and ensuring a more even cash flow.
Increasing the share of online sales will cut sales costs and expand our customer register, providing additional scope for marketing activities.
Increasing the number of visitors to our website represents an opportunity to generate add-on sales.
Customers who purchase a ski trip to a SkiStar destination are customers of SkiStar and guests at their chosen destination.
Environmental and CSR strategies Through active environmental work, SkiStar seeks to minimise the environmental impact of its operations.
SkiStar aims to offer its guests active holidays that improve their health and well-being, with positive knock-on effects on society.
Our environmental and CSR strategies should be incorporated into the Company’s other strategies.
Cross-learning and benchmarkingSkiStar’s employees have extensive experience and knowledge in operating alpine ski resorts. Meetings with industry colleagues at our vari-ous destinations ensure a continual process of cross-learning. Comparing activities and oper-ating models at our various resorts enables us to improve the efficiency of our operations and strengthen the relationship with our guests, thus establishing a foundation for increased growth and profitability.
MARKETING AND SALES16
MARKETING AND SALESMore than fifty percent of all sales take place on an advance booking basis and skistar.com is the largest sales channel.
MISSION AND TARGETSThe overall goal of the marketing and sales departments at the resorts is to maximise the occupancy rate of available beds, as well as to maximise the sales of the Group’s own services and products, such as SkiPasses, ski rental, ski schools and accommodation. Cost effectiveness shall be achieved through the prioritisation of distribution via skistar.com. Furthermore, the sales department should work to ensure effec-tive and reasonably priced transport solutions for all destinations, via collaboration with external organisers, such as charter operators and carriers.
TRADEMARK POSITIONINGSkiStar’s brand portfolio consists of the desti-nations’ trademarks, the trademarks associated with the various destinations and the common trademarks skistar.com and SkiStar. Resort trademarks and skistar.com are the main market channels. Guests seek out these destina-
tions for a memorable winter experience, while skistar.com is the name of the Company’s website and is, primarily, for the travel agent selling package holidays to the respective destinations. This way, the various trademarks work together to increase recognition of the brand, while in turn ensuring that consumers are viewed both as guests at the destinations and customers of SkiStar.
MARKETSSkiStar’s customers primarily come from the Nordic countries, where Sweden, Norway and Denmark are considered home markets. Dur-ing the 2012/13 season, the volume of SkiStar’s largest home market Sweden increased by 2%. Norway, Denmark and other foreign markets remained unchanged.
TARGET GROUPSSkiStar’s target groups can be classified according to many different criteria, such as
geographical location, age, interests, family situation or based on the destinations various profiles. The most important target group is families with children. In order to provide broad market cultivation, SkiStar works with different target-group-focused concepts.
MARKETING AND SALES STRATEGIESTailor-made winter holidaysSkiStar’s strategy is to offer each individual guest a tailor-made winter holiday, in line with their own specific wishes. Guests can choose between five different means of transport: car, bus, train, plane or boat, or a combination of these, depending primarily on the chosen destination. Transportation can, in turn, be combined with thousands of accommodation alternatives in different price ranges, everything from self-catering cabins to hotels with all amenities under one roof. Furthermore, guests can choose from an extensive selection of
MARKETING AND SALES 17
PROPORTION OF GUESTS BY NATIONALITY, %
Åre Vemdalen Sälen Hemsedal TrysilSkiStar
total
Sweden 72 97 89 23 31 72
Norway 11 0 1 40 25 10
Denmark 3 1 9 27 31 12
Finland 4 1 0 0 1 1
The UK 1 0 0 1 1 1
The Netherlands 1 0 0 2 2 1
Germany 0 0 0 4 5 1
Russia 5 0 0 2 3 2
Baltic States 2 1 0 0 1 1
Other 1 0 1 1 0 0
SALES CHANNELS, %
Advance Sales Destination
Telephone Web Travel Agent Cashier sales
SkiPass 4 30 2 64
Accommodation 18 68 12 2
Transport 40 52 7 1
Ski rental 3 35 1 61
Ski school 15 47 1 37
Total 10 45 5 40
Total 60 40
ski schools, ski rental options and SkiPasses. Guests also have the option of choosing the length of their holiday, whether it happens to be a weekend, a short break, an entire week or, in some cases, an even longer visit.
High accessibility through skistar.comThe most important sales channel is skistar.com where guests can book their entire winter holi-day, including travel arrangements, accommo-dation, ski school, ski rental and SkiPass, all at one place. Large parts of the investments made in SkiStar’s business systems relate to making it easier for customers to book on skistar.com. The aim is that all products should always be marketable through the website. The website skistar.com has more than 8.6 million visits a year. The greatest amount of traffic is during January when the number of visits per week is close to 500,000.
High and stable occupancy rateA stable and high occupancy rate in our accommodation over the entire winter season forms the basis of high profitability. In order to achieve this, the sales departments work actively with differentiated pricing based on the underlying demand. In order to optimise demand during the low season, different offers and events are marketed aimed at the various target groups, such as theme weeks and events.
Available bedsSkiStar actively works to provide as many beds as possible. When apartments/cabins are sold through the Business Area Property Develop-ment, a contract is signed entitling SkiStar the right to let the apartment/cabin for a certain number of weeks per year. SkiStar also works actively with current owners by offering a number of bonuses to those who make their cabins/apartments available for letting.
Reasonably priced transportationIn order to secure a high occupancy rate in the accommodation, it must be easy for guests to travel to the destinations. Consequently, SkiStar actively works to secure reasonably priced transportation to the resorts via external partners. SkiStar cooperates, for example, with ferry lines in Denmark and Germany, charter companies in Russia, the UK and the Nether-lands, as well as with travel agencies in all for-eign markets. In addition, SkiStar cooperates domestically with a list of transporters includ-ing air, rail and bus transport.
Returning guests - loyaltyReturning guests are an important factor for SkiStar’s high profitability, as the marketing cost for a returning guest is much lower com-pared with the cost of a newly recruited guest. Guests who visited any of SkiStar’s destinations are continuously cultivated. For example, the guest may receive an offer to return to the same destination, or visit another destination in the same season. During December/January, large parts of the following winter season’s
accommodation programme are also released for booking. Returning guests have priority in terms of this release through communication via e-mail, etc.
On-site sales In spring 2013, a major project designed to facilitate on-site sales at the destinations was initiated. The goal here is to ultimately be able to bring together the customer’s entire buying process from advance sales and on-site sales to sales after the guest’s stay.
SALES CHANNELSSales are carried out via four channels, includ-ing the Internet, telephone (call centre), over the counter at the destinations and via retailers (agents). Sales through the three first channels, so-called own sales, comprise 95%. The por-tion of bookings via skistar.com during the 2012/13 season was 45% (46%). As regards accommodation only, a considerable 68% (65%) of the total amount of sales took place via online bookings.
A total of 5% of SkiStar’s sales takes place via retailers, travel agents and transportation companies. Such intermediaries are primarily important for markets outside of Sweden and Norway. SkiStar considers its high-priority foreign markets to be Denmark, Finland, the UK, the Netherlands, Russia, the Baltic States and Northern Germany.
MYSKISTARMySkiStar is a project undertaken by the Company with the aim of inspiring more enjoyable alpine skiing, by linking skiing with
digital channels. The registration of a SkiPass allows opportunities to add a further dimen-sion to the ski experience. The user can receive rewards, can integrate and compete with other users, view ski statistics and share everything on social media. MySkiStar is accessible via the Internet, mobile websites and apps; however, it is based on the user’s personal SkiPass. As of August 2013, a total of 117,000 skiers are registered on MySkiStar.
CommunicationSkiStar’s marketing aims at emphasizing the unique characteristics of each individual destination in order to provide our guests with a broad selection. Our distribution channel, skistar.com, incorporates a common graphical framework and demonstrates the fact that the destinations belong to the SkiStar family. SkiStar continuously communicates with guests who have previously visited SkiStar’s destina-tions. Our distributed e-mails inform these guests of, for example, various offers, discounts and discounted periods. Anyone who books an upcoming trip to one of the destinations will also receive information and offers by e-mail aimed towards simplifying the guests’ prepara-tions prior to their winter vacation. As a result, guests have more leisure time, as well as more time to devote to activities at the destination. SkiStar’s communication is integrated in vari-ous media channels; both current and potential guests are, thus, reached by SkiStar’s marketing via television advertisements, newspaper advertising, on websites, in social media and local advertising to name a few (see examples on pages 18-19).
MARKETING AND SALES18
Communication, digital media, examples
The skistar.com portal, a marketing and sales channel
E-mail sent to existing guests in Sweden, Norway, Denmark and other countries
MARKETING AND SALES 19
Boka in lång-ledigt redan idag!
Begränsat antal tomtar -
först till kvarn!
Boka nu på skistar.com
För dig som bokar minst 7 dygns boende med ankomst 20-22/12– 2013.
Gäller endast nya boendebokningar gjorda 17 juni tom 18 aug. Ansök med ditt bokningsnummer på skistar.com
God Jul Boka boende under
julen så bjuder vi på tomte
Jullovet är långt och härligt även i år.I fjällen du ett riktigt bra sådant får.
Julfirande i fjällen är något minnesvärt för hela
familjen. Snötyngda granar, frisk fjälluft, smittande skratt i sittliften och dagar fyllda med skidåkning. När mörkret faller på infinner sig stugmyset och
tid för avkoppling och god mat.
Ta ut fem semesterdagar under jul och nyår, så blir du ledig upp till två veckor. Ta med nära och
kära - boka idag så bjuder vi på tomte på julafton!
Avs: 21 Grams, Box 43, 121 25 Stockholm
BSverigePorto betalt
Communication, printed media, examples
Outdoor advertising
Advertisements in magazines and daily newspapers
Press Releases
Postcards
Television advertisements
MySkiStar er gratis. Det eneste du trenger er skipasset ditt. Følg med på dine egne og andres skiaktiviteter på skistar.com/myskistar
Den finnes flere hundre forskjellig pins
du kan samle på.
SAMLE PINS
Se hvor mange kalorier du har kvittet deg med
i løpet av skidagen.
SJEKK KALORIFORBRENNINGEN
Se hvor i skianlegget familie og venner
befinner seg.
FINN ANDRE
UTFORDRE
Få med deg familie og venner på
egne eller andres utfordringer.
Knytt kontoen til Facebook og
Twitter og del skidagen med andre.
DEL
Bare ved å delta får du gode tilbud du
straks kan benytte deg av.
VINN1010
55
5
Få tilgang til gratis treningstips som styrker kroppen
og gjør skiaktivitetene enda bedre.
FÅ TRENINGSTIPS
Få tilsendt tilbud direkte til profilen din, for eksempel
gratis kaffe eller rabatt på neste skiferie.
FÅ TILBUD%%SEK/NOKSEK/NOK
Se hvor aktiv du har vært og
sammenlign med andre.
SE STATISTIKK
Delta i konkurranser og ha muligheten
til å vinne fine premier.
KONKURRER
Oppdag MySkiStar ved å registrere skipasset
ditt – www.skistar.com/myskistar
BLI MED NÅ!
SKIAKTIVITETER UTEN MYSKISTAR
En herlig dag i bakken, akkurat som vanlig. Eller vil du teste noe nytt, spennende og utviklende? Da burde du registrere deg i MySkiStar. Det kan du gjøre når somhelst på:
skistar.com/myskistar
... eller med MySkiStar-appen.
SKIAKTIVITETER MED MYSKISTAR
Det eneste du trenger er skipasset ditt. Registrer WTP-nummeret påbaksiden av skipasset på:
skistar.com/myskistar
Du kan gjøre det med en gang eller etter første dagen i bakken. Utforsk mulighetene og ha det morsomt!
Så mye morsommere
blir det medSå mye morsommere
blir det med
Snöglädje och lyckan att själv susa nerför skidbacken är något vi vill att
så många barn som möjligt får uppleva. Under Kidz Prize-veckorna är
därför skidskola, skidhyra och SkiPass gratis för alla barn*.
Begränsat antal platser - Först till kvarn!
Läs mer och boka på skistar.com
Vi lär barnen åkaskidor gratis*!
*Vistelser vecka 2-6 2014 (5/1-7/2) för barn t o m 7 år i Sälen, Åre, Vemdalen samt t o m 6 år i Trysil och Hemsedal.
Rabatten gäller vid bokning av minst ett 5 dagar vuxen-SkiPass. Begränsat antal platser. Erbjudandet gäller t o m 31/10 2013
GRATIS GRUPPSKIDSKOLAGRATIS SKIDHYRA
GRATIS SKIPASS
*Gäller ej säsongspass. Prisexemplet avser 4 bäddars stuga/lgh sön-sön vecka 7 2014 med reservation för slutförsäljning. Boka på skistar.com
Härliga dagar i backen och stugmys om kvällarna. Det bästa sportlovet firas i fjällen med familjen. Veckorna 7-10 har vi fyllt med aktiviteter
och event som passar alla åldrar.
Pris från 4995 kr per boende, fyra bäddar.Läs mer och boka på skistar.com
Vi lærer børnene at stå på ski for 0 kroner*!
*Ophold i uge 2-6 2014 (5/1-7/2) for børn t.o.m. 7 år i Sälen, Åre, Vemdalen samt t.o.m. 6 år i Trysil og Hemsedal.
Rabatten gælder ved booking af mindst ét 5-dages voksen-SkiPass. Begrænset antal pladser. Tilbuddet gælder t.o.m. 31/10 2013.
GRATIS GRUPPESKISKOLEGRATIS SKIUDLEJNING
GRATIS SKIPASS
0DKK
God Julönskar SkiStar
EMPLOYEES
20 EMPLOYEES
EMPLOYEES 21
NET SALES per employee, TSEK
500
1000
1500
2000
12/1311/1210/1109/1008/09
TSEK
AVERAGE NUMBER OF EMPLOYEES
Persons
400
600
800
1000
1200
12/1311/1210/1109/1008/09
DISTRIBUTION BY AGE, permanent employees
>60
50-59
40-49
30-39
20-29
PERMANENT EMPLOYEES, per destination
Trysil 16%
Hemsedal 12%
Vemdalen 7%
Åre 20%
Sälen 28%
Stab inkl fastighet 17%
SKISTAR’S HR-VISION SkiStar will create a business culture character-ised by learning, high performance standards, care, focus on guests and pride in one’s work. Employees are to have an attitude character-ised by a willingness to adapt.
SATISFIED EMPLOYEES AND GOOD SERVICE PROVIDE RESULTSMotivated and satisfied employees provide better service. Good service is one of the most important reasons why guests return to one of SkiStar’s destinations, since a large part of the guest’s experience is in how welcome they are made to feel by the personnel. Satisfied return-ing customers are the foundation of SkiStar’s profitability. SkiStar works with various pro-grammes in order to continually improve the service provided to our guests.
MEASURING VALUES – MAPPING OUR TARGETSFeedback regarding the guests’ experiences plays a crucial role in our efforts to improve service.
Consequently, SkiStar has created a tool with which we can measure how the guests experience the employees’ fulfilment of SkiStar’s basic values. The results are reported digitally in the form of a target map. The target map is created over the entire duration of the winter season and the results are monitored on an ongoing basis.
EMPLOYEE SURVEYDuring 2012, a survey among our employees was made to ensure an enjoyable and pleasant working environment and, also, to obtain their views on how the business can be improved. The results were very positive and show that 98% of our employees enjoy their work, and have fun at work. During 2013, the employee survey was followed up and three focus areas were selected in each department, destination, and overall, to further improve and to utilise employee suggestions. Information has been one of the areas of work and one of the meas-ures to improve information within SkiStar is a new intranet.
RECRUITMENT – A SEARCH FOR VALUESA positive corporate culture is highly valued by people seeking employment, as confirmed by internal interviews within SkiStar. A job-seeker’s personal values should be matched to the values of SkiStar in order to provide a positive experience for guests, employees and the organisation. Prior to each season, close to 2,500 employment interviews are conducted and up to 1,700 individuals are recruited, including returning seasonal workers. A well- structured recruitment programme is, there-fore, one of the strategic tools available to help build a strong business culture. SkiStar has developed an online recruitment tool based on the Company’s values. This tool makes the recruitment process more cost-efficient and
increases the quality of the selection process. For the 2012/13 season, more than 8,000 people applied for work at SkiStar’s destina-tions.
OUR WORKING ENVIRONMENT – HOW GUESTS EXPERIENCE THEIR ENVIRONMENTA safe and sound working environment for SkiStar’s employees is a prerequisite for being able to offer guests memorable winter experiences in a safe and secure mountain environment. SkiStar has a structured work environment organisation at each and every destination, working with preventative measures to continuously improve working conditions, by way of, for example, safety checks and inspections, as well as via the drafting of policies for the work environ-ment.
Each destination also has a well-developed emergency organisation with specially trained crisis managers. Last year, several emergency drills were carried out in order to maintain a high degree of preparedness. In the event of a crisis or accident, SkiStar’s tested routines and trained staff are able to administer the provision of professional and considerate care, in order to reduce any unnecessary suffering for those affected. This applies equally to our guests, our employees and any other stake-holders.
In the event of an emergency, the organisa-tion is always, primarily, to address those who are injured and any individuals accompanying them and, secondly, to maintain confidence in SkiStar.
EQUALITYSkiStar works actively with issues of equality, together with trade unions and employers’ organisations. A gender equality group man-ages development issues.
EMPLOYEE STATISTICSThe average number of employees during the 2012/13 financial year increased by 34 (3%) to 1,085 (1,051). The distribution of employees over the different destinations is shown in the pie chart below. The average age of full-time employees was 42 (42), whilst the average period of employment of full-time employees was 10 (9) years. A total of 38% (38%) of the total number of employees were women. Net sales per employee increased by 3.9% to TSEK 1,535 (1,477). The number of full-time employees as per 31 August was 428 (418) and the employee turnover among full-time employees shows that 41 (28) have entered employment and 31 (38) have terminated their employment during the financial year. The number recalculated to fulltime was 416.7 (403.8). During the peak season, SkiStar had a total of 2,330 (2,289) employees. The portion of full-time employees with higher education qualifications was 17% (18%), as per 31 August 2013, and SkiStar’s investment in competence development totalled MSEK 3 (3) during the financial year. The majority of the training carried out to improve both skills and confidence was undertaken in-house.
OUR RESPONSIBIL ITY22
CLIMATE TREND, TONNES CO2/MSEK
0
1
2
3
4
12/1311/1210/1109/1008/09
REPORTED CO2 EMISSIONS, TONNES
12/13 11/12
Fuel* 5,219 4,985
Transportation** 114 90
Heating*** 105 131
Electricity**** 130 0
Total 5,568 5,206
* Increased slope areas and ever higher quality standards
contribute to the increase. The clearest increase is in
Hemsedal and Trysil, weather-related.
** The increase is mostly due to increased air travel by the
staff.
*** Concerns district heating.
**** As of 2007/08, all destinations use renewable energy,
Good Environmental Choices and EPD Water or equiva-
lent eco-labelling. As of 1 January 2013, however, Åre no
longer trades Good Environmental Choice electricity.
OUR RESPONSIBILITYCODE OF CONDUCTSkiStar follows a Code of Conduct, adopted by the Company’s Board. This Code contains all policies regarding the manner in which the Company is to act in relation to its stakehold-ers, and contains guidelines for environment and social responsibility.
STAKEHOLDERSIn SkiStar’s business environment, there are a large number of important stakeholders. These are addressed in the Code of Conduct, based on their relationship to SkiStar. The adjacent table lists a number of examples of stakehold-ers, the key issues that are important to each stakeholder, as well as the measures taken by SkiStar to best protect and accommodate the stakeholders and satisfy the requirements placed upon SkiStar by the authorities, as well as the legislation and other regulations with which SkiStar is to comply.
ENVIRONMENTEnvironmental policySkiStar shall take the environment into con-sideration in all of its operations in its efforts to create a memorable winter experience. Systematic improvements will ensure that SkiStar’s guests come to view SkiStar as the environmentally sound choice.
SkiStar’s destinations shall: Maintain the natural beauty of the moun-tain environment.
Design and select products and services in such a manner as to limit their environmen-tal impact during purchase, production, utilisation and disposal.
Make every effort to continually minimise each significant negative environmental impact by reducing, in relative terms, the use of natural resources (materials, fuels and energy) and by reducing the amount of waste products (materials, emissions to land, air and water).
Continually improve employees’ environ-mental knowledge and awareness.
Energy policyIt is SkiStar’s goal to conduct operations adapted to the environment with as low energy consump-tion as possible. This implies that SkiStar strives to make its energy consumption efficient and to maintain energy utilisation at the lowest level possible in relation to its operations. Snow making, property management and ski lifts are all processes requiring a great deal of energy. In order to achieve energy efficiency, SkiStar should systematically identify and analyse energy use, as well as operate with as low energy consumption as financially plausible. Moreover, SkiStar should focus on the energy efficiency of new investments, visualise energy usage for individual employees, and, together with them, find solutions as to how energy consumption can be reduced without compromising product quality. SkiStar shall also use renewable energy, wherever possible, whilst
OUR RESPONSIBIL ITY 23
STAKEHOLDERS
Examples of key issues Examples of management within SkiStar
GUESTS Service Guest surveys as a basis to improve satisfaction.
Safety Thorough safety routines. Crisis management policy, with an established plan of action
for emergencies and thorough routines.
EMLOYEESSafe working environment Work environment policy. Continuous improvement of the work environment, through
safety inspections and health and safety plans.
Diversity and equality Equality plan that protects the equal rights of all employees and promotes increased
diversity.
PARTNERS AND OTHER
STAKEHOLDERS
Freedom of competition Policy about bribes to ensure that employees do not participate in activities that hamper
competition.
Company security IT and security policy makes sure that all usage of IT and phone systems is in the interest
of the Company.
SHAREHOLDERSFinancial reporting and information
affecting share value
SkiStar AB is listed on the Nasdaq OMX Mid Cap Stockholm and has explicit guidelines as to
how, when, and by whom, reports and information affecting share value is communicated.
Insider information and insider
TradingEmployees with access to insider information are covered by the Insider Trading Act.
abiding by the rules and regulations applicable to the operations regarding energy utilisation.
Examples of environmental and ener-gy efficiency measures implemented
Follow-up on carbon dioxide (CO2) emis-sions caused by the operations. See the table on the previous page.
The operations of SkiStar are geographically dispersed and, therefore, physical meetings are replaced by telephone, web or video conferences whenever possible.
SkiStar buys, to the greatest extent possible, its electricity and heating from renewable sources.
Continuous upgrading of the snow systems to more modern, efficient and low-energy systems.
SkiStar is a part owner of Dala Vindkraft Ekonomisk Förening, as well as Dala Vind AB, as part of the Company’s focus on renewable energy and climate-neutral power production, and also in order to make it possible for the municipalities, the County of Dalarna, Sweden and the EU to meet their climate targets.
SkiStar, together with other investors, oper-ates three heating plants, two heating plants in Sälen, in Lindvallen and in Tandådalen, as well as one in Hemsedal.
Planning work for recycling and reinsert-ing excess heat from compressors used for snow-creation back to the district heating network.
Accommodation is, to the greatest extent possible, built by local construction companies, using locally sourced recycled materials. Existing vegetation on the land is preserved and replanted, and trees in the vicinity are protected during the construc-tion period.
Continuous work to prevent erosion of the slopes through the building of dams and planting of vegetation.
The vast majority of newly constructed accommodation is adjacent to the lift sys-
tems – so-called “Ski In – Ski Out” – which means less car travel at the destinations.
SOCIAL RESPONSIBILITYThe guidelines adopted by SkiStar state that SkiStar supports the basic values expressed in the UN Global Compact and its ten principles on corporate social responsibility. These prin-ciples encompass regulations regarding respect for basic human rights, labour laws – including regulations against child labour and forced labour – corruption measures and environ-mental regulations. SkiStar shall contribute, as much as possible, to the improvement of financial, environmental and social conditions through an open dialogue with the relevant interest groups in the community. Consequent-ly, SkiStar supports the UN Millennium Devel-opment Goals. SkiStar supports and respects the preservation of international resolutions on human rights. SkiStar shall ensure that it does not, in any manner, contribute to, benefit from or facilitate the violation of human rights.
HEALTH AND ACTIVE LIFESTYLEAs SkiStar believes that an active lifestyle with friends and family contributes significantly to a healthy and fulfilling life, the Company is constantly looking for new opportunities to create the conditions for such a lifestyle. The general interest in health and well-being has increased and the trend to stay active while away on holiday is also growing. The ski com-munity MySkiStar and the SkiStar Experience concept are examples of services that SkiStar has introduced to seize upon and reinforce the guests’ interest in alpine skiing as a means of exercising and socialising.
National efforts and local involvementSkiStar collaborates with several different organisations and projects in the areas of environment, social responsibility and health and active lifestyle. This concerns both projects at the national level and support of local initia-tives and activities. Below are some examples:
ENVIRONMENT
Panta Mera (Swedish can and bottle recycling
drive). Cans and PET bottles are collected in
containers and igloos labelled “Panta Mera” at the
destinations. The return on the cans is donated
by SkiStar to the project “Alla på snö” (Snow for
Everybody).
Participating in the climate manifestation Earth
Hour to inspire guests and employees to conserve
energy for a brighter future.
SOCIAL RESPONSIBILITY
“Min Stora Dag” (My Big Day) works with gran-
ting the wishes of critically ill children. Together
with volunteers and SkiStar personnel, several
“Min Stora Dag” events have been held at SkiStar
destinations.
Stefans Stuga, next to Snötorget in Lindvallen, is
a specially designed building, adjacent to the lift
systems, intended to be a place where families
affected by cancer can relax, socialize, experience,
and be together. Stefans Stuga is part of the foun-
dation the Stefan Paulsson Cancer Fund.
HEALTH AND ACTIVE LIFESTYLE
“Alla på snö”, a collaboration between the
Swedish Ski Association and the Swedish Ski
Council, aimed at inspiring children to an active
and healthy lifestyle through opportunities to
try skiing.
Team sponsor to the Ski Team Sweden Alpine, in
order to increase interest in skiing and create the
resources for training and competing.
24 RISKS AND OPPORTUNITIES
RISKS AND OPPORTUNITIESSkiStar’s operations are well adapted to seasonal variations.
RISKS AND OPPORTUNITIES 25
CompetitionSun and sea holidays and weekend city trips are considered to comprise SkiStar’s main competitors; however, other industries also compete for customer’s disposable income, such as luxury items and investments in the home. Other competitors are comprised of other alpine ski resorts in Scandinavia and the Alps. The alpine ski industry has high start-up costs, which limits competition. Extensive investments in service-minded staff, manage-ment, modern lifts and snow systems, IT, res-taurants, etc., ensure that SkiStar’s destinations maintain a high level of quality in which the guests’ winter experiences and comfort are also enhanced year after year.
SkiStar’s destinations are highly accessible from urban areas due to their geographical proximity and reasonably priced transport solutions in the form of railway, air and bus connections. SkiStar’s product and service offerings are highly accessible to SkiStar’s guests via its online marketing and sales system, which facilitates the booking process for guests. Other important competitive factors include a strong financial position, the well-known and attractive brand, and a strong cash flow.
ExpansionSkiStar’s strategy for growth primarily consists of improved utilisation of the existing destina-tions and the development of product and service offerings. Secondarily, growth is stimu-lated by the acquisition or leasing of other ski resorts. All of the acquisitions which SkiStar has undertaken have developed well and have contributed significantly to SkiStar’s success. During 1997, Tandådalen & Hundfjället AB was acquired, followed by Åre Vemdalen AB in 1999, Hemsedal Skisenter AS in 2000 and Trysilfjellet Alpin AS in 2005. The manage-ment agreement with Andermatt expired in September. Renegotiation of a new agreement, which is more focused on marketing, sales and IT, is under way. SkiStar’s well-established and well-developed concept for the operation of alpine destinations is a good basis for further successful expansion.
Bed capacity and occupancy rateThe profitability of alpine destinations is dependent on the number of available beds and the occupancy rates. It is important that SkiStar retains control over a high bed capacity, in order to optimize occupancy by adapting to changes in demand and by setting the right rates for accommodation throughout the season. SkiStar actively works to increase the number of beds at its destinations and to increase the proportion of beds mediated by SkiStar. It is also important that older cabins and apartments are modernised in order to maintain demand. In addition to SkiStar, new investments in cabins and apartments have primarily been undertaken by external stakeholders or jointly-owned companies. Skiers’ strong interest in SkiStar’s destinations increases the attractiveness of the Company to
investment capitalists, which leads to long-term growth in tourist beds and the development of various accommodation alternatives.
EmployeesSalary costs are the Company’s single largest expense item. SkiStar’s continued success is dependent on motivated and committed employees. In order to retain key personnel, SkiStar works with leadership training and incentive programmes in which, amongst other things, personnel have been offered the opportunity to purchase convertible deben-tures during both 2003 and 2007, for a total of MSEK 55.
SkiStar’s management consists of the CEO, the deputy CEO, also CFO, the Marketing and Sales Manager, the Technical Director, also Resort Manager for the Norwegian resorts Hemsedal and Trysil, as well as two Resort Managers in Sweden; one from Åre-Vemdalen and one from Sälen. As per 31 August 2013, the management group held a total of 579,568 Class B shares in the Company.
In order to increase efficiency, awareness and commitment amongst personnel, SkiStar works extensively on leadership issues. The personnel’s service level in relation to the guests is an important part of the guests’ total experience. Consequently, a deterioration in the possibility of recruiting qualified seasonal personnel during a strong economic cycle, when unemployment is low, constitutes a risk.
Safety issuesSkiStar actively works with safety issues by identifying and rectifying the risk of accident and also by proactively working with issues connected to the working environment. Risk analyses are continually executed at all destina-tions in order to ensure sufficient insurance protection and to minimise the various types of risk. A comprehensive crisis plan for SkiStar has also been produced to prepare the Com-pany for any possible accidents or unforeseen incidents.
FINANCIAL RISKS AND OPPORTUNITIESCurrency risksThe fluctuation of local currencies against foreign currencies impacts travel habits and, thus, can affect the number of guests at SkiStar’s alpine destinations. The Group is also impacted by the relationship between the Swedish and Norwegian currencies. SkiStar does not hedge its Norwegian operations. Hedging is done for larger investments, mostly purchases of lifts, snow systems and snow grooming equipment, which are often made in EUR. Starting in the summer of 2013, Dan-ish customers have the option to make their reservation in DKK. SkiStar has hedged 60% of estimated cash flows in DKK.
Investments and interest ratesThe Alpine ski industry demands major capital investments in order to maintain and increase
OPERATIONAL RISKS Seasonal dependencyThe majority of SkiStar’s revenues are generated during the period December-April. SkiStar’s operations are well adapted to seasonal variations, not least in terms of the workforce. The majority of the winter book-ings are made prior to the commencement of the season. With an increased portion of sales paid in advance, business transactions are concluded at an earlier point in time, which, in turn, decreases operational risk.
Dependency on climate and weatherThe number of guests at SkiStar’s destinations is affected by weather and snow conditions. A late winter, with poor access to cold weather and natural snow leading up to the week of Christmas, results in lower demand. A lower demand can also arise in winters with long periods of cold weather and good snow condi-tions in the more densely populated parts of southern Scandinavia, as snow, cold weather and skiing are available closer to home. SkiStar meets these risks by continuously developing its snow systems, in order to guarantee skiing, and by executing strategic sales to ensure that a considerable portion of the available accommodation capacity is booked prior to the Christmas week, which marks the start of the high season. The impact of the greenhouse effect has been vigorously debated for some time. Most scientists are in agreement that global warming is taking place; however, it is very difficult to predict the resulting regional and local effects, which means that certain regions may experience unchanged, or even declining, temperatures. A milder climate may, in the long run, give rise to shorter winter sea-sons, with later winters and an earlier spring. For instance, should SkiStar’s destinations start the season one week later than usual and end one week earlier, the Company’s income would be only marginally affected, as the majority of guests visit the destinations between Christmas week and the middle of April. The Group’s weather risks are also limited, due to the fact that the destinations are geographically situated in a variety of locations and, thereby, enjoy varying weather conditions and climates. SkiStar’s destinations are rapidly developing their snow-making facilities in order to ensure, in both the short and long term, good skiing for guests during the entire winter season.
Business cycleFluctuations in disposable income impact private consumption, which, in turn, affects people’s ability to take winter holidays. SkiStar’s historical sales development and earn-ings trends show that the Company has been quite capable of handling swings in the busi-ness cycle. A large portion of SkiStar’s guests are families who, to a large extent, return year after year, and for whom the winter holiday is a high priority. The dependency on the Swedish economic climate is reduced by the fact that there are also operations in Norway.
RISKS AND OPPORTUNITIES26
SENSITIVITY ANALYSIS
Change Impact on results
Occupancy +/-10% +/-51 MSEK
SkiPass Prices +/-10% +/-93 MSEK
Interest +/-1% -/+12 MSEK
Salary costs +/-10% -/+49 MSEK
Market price of electricity +/-10 öre -/+ 0 MSEK
Exchange rate NOK/SEK +/-10% +/-1 MSEK
competitiveness. SkiStar has a strong cash flow, which enables a high level of internally-financed investments. Should interest rates increase, the cash flow can be used to more quickly amortise loans and, thereby, decrease the financial burden on the Company. At present, external borrowing only takes place in the local currencies, SEK and NOK. Parts of the loan portfolio have been hedged through interest derivatives with longer durations.
OTHER RISKS AND OPPORTUNITIESElectricity costs SkiStar’s operations consume a great deal of electricity. Consequently, variations in electricity rates impact the Group’s total expenses and income. According to established policy, the major portion of the Group’s e lectricity consumption is obtained on the basis of fixed or local prices. Approximately 52% of the electricity prices for the 2012/13 season were fixed and local energy producers supplied approximately 36% of the Group’s electricity consumption at local prices or fund manage-ment, which are normally lower than market prices on the electricity market, Nord Pool. These local prices fluctuate significantly less than market prices, and the fund price is set at a fixed price the quarter before the start of con-sumption. Approximately 12% of the expected electricity consumption for the 2013/14 season will be directly impacted by fluctuations in market prices.
During the coming financial year, SkiStar anticipates that approximately 1.5% of its total energy needs will come from wind power plants in Dalarna, of which SkiStar is a part-owner. Together with other investors, SkiStar has built three thermal power stations, two in Sälen, located in Lindvallen and in Tandådalen, and one in Hemsedal. The heating plant in Lindvallen provides power to larger properties in the southern area of Lindvallen. The Tandådalen heating plant provides power to the central parts of Tandådalen, as well as the cabin area of Solbacken. In Hemsedal, the heating plant provides power to the entire Alpine Lodge, and is adapted for future needs in the Fjelland area. The heating plants are run using locally produced, renewable forest fuel.
Fuel pricesMany of SkiStar’s guests use private cars to travel to their destinations. This mode of travel is impacted by fuel prices and taxation on
company cars. The close proximity of alpine destinations to population centres and other alternative forms of travel, such as railway, reduce the negative consequences of increased petrol prices. Newer cars with significantly more energy efficient engines are also a positive development which will result in lower travel costs.
Changes in laws and regulationsChanges in laws and regulations concerning SkiStar’s operations can, of course, impact operations and income. At present, the Company knows of no upcoming changes in laws and regulations which would have a significant impact on the Company.
CURRENT DISPUTESSkiStar has received a summons to appear in court together with two former Board members of Spray AB, related to the sale of a company which took place before SkiStar acquired Spray AB in 2003. The claimant, CA Fastigheter, has called for the transaction to be reversed in an amount equivalent to the purchase consideration of MSEK 17, plus interest. SkiStar has not reserved any expenses in relation to the summons, as it is not consid-ered likely that CA Fastigheter’s claim will be upheld.
SENSITIVITY ANALYSISThe sensitivity analysis below describes the manner in which the Group’s income is impact-ed by changes in a number of the Group’s most important variables. Assumptions regarding the impact of the occupancy rate on income are based on all accommodation mediated via SkiStar and refer only to the impact on the sale of SkiPasses. Changes in other types of revenue are deemed, in the sensitivity analysis, to be neutralised by the increase or decrease of expenses. In calculating the sensitivity of electricity consumption, only the portion of electricity consumption directly impacted by changes in market price has been taken into consideration. In calculating the sensitivity of a change in interest rate levels, the loans affected by a change in the interest rate levels have been taken into consideration.
FORECASTSSkiStar has previously decided not to provide an earnings forecast. Instead, the interim reports provide information regarding the current status of bookings.
27RISKS AND OPPORTUNITIES
THE SKISTAR SHARE28
THE SKISTAR SHAREThe SkiStar share has been listed on the Stockholm Stock Exchange since 1994.
HISTORYThe Class B share is listed on the Nasdaq OMX Mid Cap Stockholm. The share was listed on 8 July 1994 on the Stockholm Stock Exchange OTC list. At the time of listing, the share price was SEK 9 adjusted for share splits.
SHARE STRUCTUREOn 31 August 2012, share capital amounted to SEK 19,594,014 distributed among 39,188,028 shares, of which 1,824,000 are Class A shares entitling the holder to 10 votes per share and 37,364,028 are Class B shares entitling the holder to one vote per share. All shares have equal rights to distribution.
SHARE PRICE DEVELOPMENT AND SALESDuring the financial year 2012/13, the share price decreased by SEK 0.25 (0.3%) to SEK 81.00. The Stockholm Stock Exchange’s total index (OMXS) increased by 19% during the same period. Since the Company was listed in 1994, the market price has increased from SEK 9 to SEK 81.00. During the same period, dividends have been provided at SEK 45.69 per share, including a dividend of SEK 2.50 proposed by the Board for the 2012/13 financial year. During the period 1 September 2012 to 31 August 2013, a total of 6,700,402 (6,114,565) shares in SkiStar were traded on the Stockholm Stock Exchange at a value of MSEK 535 (503). The turnover of SkiStar shares has increased after Investment AB Öresund distributed 2,381,852 SkiStar shares to their shareholders, resulting in the number
of shareholders almost having been doubled. The turnover rate for shares amounted to 18% (16), compared to 68% (85) for the Stockholm Stock Exchange as a whole. The lowest price of SEK 72.50 was noted on 24 June 2013, and the highest price paid was SEK 89.00, noted on 20 February 2013. On 31 August 2013, SkiStar’s market value amounted to MSEK 3,174 (3,184).
BETA VALUEThe beta value of SkiStar’s Class B share was 0.29 on 31 August 2013. The beta value is based on the Company’s share price over the past 24 months and indicates the degree to which the share price has fluctuated compared to the stock exchange index. If a share has the same price fluctuation as the stock exchange index, the share’s beta value is equal to 1.0. The SkiStar share’s beta value of 0.29, thus, implies that the share displays less share price volatility than the Stock Exchange, on average.
SHAREHOLDERSAccording to the shareholders’ register kept by Euroclear Sweden AB, there were 31,162 (16,648) shareholders on 31 August 2013. The large increase in the number of shareholders is due to Investment AB Öresund having distributed 2,381,852 SkiStar shares to its shareholders. At the end of the financial year, the ten largest shareholders accounted for 60% (64) of the capital and 72% (75) of the votes. Foreign shareholders accounted for 9% (9) and Swedish institutional owners for 21% (28) of the capital. Significant changes
in holdings amongst major owners during the financial year included Investment AB Öresund decreasing its holdings significantly by distributing SkiStar shares to its shareholders, and Lannebo Småbolag Fonder and Handels-banken Fonder also decreasing their holdings. JPM Chase NA, Mats Qviberg and family, the Fourth Swedish National Pension Fund and Banque Öhman S.A. have increased their holdings. Among new major owners are AMF Aktiefond, which owns 300,000 Class B shares, and Catella Sverige Select, which owns 200,000 Class B shares.
DIVIDEND POLICYSkiStar’s dividend policy is to annually dis-tribute a minimum of 50% of its income after tax. The policy is based upon SkiStar’s strong financial base, combined with a strong cash flow which allows a generous dividend policy, at the same time as allowing investments to be financed by the Company’s own funds. The proposed dividend of SEK 2.50 (2.50) per share corresponds to 72% (63) of income after tax, implying a direct return of 3.1% (3.1), based on the market value on 31 August. In total, the proposed dividend amounts to MSEK 98 (98). The record date for payments to the Swedish shareholders is proposed to be 18 December 2013. Payment will be disbursed through Euroclear Sweden AB on 23 December 2013.
THE SKISTAR SHARE 29
SKISTAR, CLASS B SHARE EARNINGS AND DIVIDENDS PER SHARE, SEK
Dividend/shareProfit/share
SEK
10/1109/1008/09 12/1311/120
2
4
6
8
10
OWNERSHIP STRUCTURE, 31 AUGUST 2013
Holdings Number of owners %
Number of
A-shares
Number of
B-shares Capital, % Votes, %
1-100 17,961 57.64% 434,692 1.11 0.78
101-200 6,439 20.66% 1,214,798 3.10 2.18
201-1,000 5,156 16.55% 2,695,220 6.88 4.85
1,001-5,000 1,319 4.23% 2,831,998 7.23 5.09
5,001-10,000 114 0.37% 811,766 2.07 1.46
10,001-20,000 65 0.21% 943,253 2.41 1.70
20,001-50,000 42 0.13% 1,394,874 3.56 2.51
50,001-100,000 26 0.08% 1,916,996 4.89 3.45
100,001- 40 0.13% 1,824,000 25,120,431 68.75 77.98
Totalt 31,162 100.00% 1,824,000 37,364,028 100 100
SHARE CAPITAL DEVELOPMENT
Year and transaction
Increase in
number of shares
Nominal amount
per share
Total number
of shares
Change in
share capital,
SEK
Total
share capital,
SEK
1992 Established 10 500,000 5,000,000
1994 New share issue 150,000 10 650,000 1,500,000 6,500,000
1994 Conversion 160,405 10 810,405 1,604,050 8,104,050
1995 Split 5:1 3,241,620 2 4,052,025 8,104,050
1997 New share issue 2,337,725 2 6,389,750 4,675,450 12,779,500
1998 New share issue 200,000 2 6,589,750 400,000 13,179,500
1998 Conversion 250,000 2 6,839,750 500,000 13,679,500
1999 Conversion 250,000 2 7,089,750 500,000 14,179,500
1999 New share issue 2,450,000 2 9,539,750 4,900,000 19,079,500
2000 New share issue 100,073 2 9,639,823 200,146 19,279,646
2004 Split 2:1 9,639,823 1 19,279,646 19,279,646
2004 Conversion 183,566 1 19,463,212 183,566 19,463,212
2005 Conversion 64,822 1 19,528,034 64,822 19,528,034
2005 Split 2:1 19,528,034 0.5 39,056,068 19,528,034
2006 Conversion 24,010 0.5 39,080,078 12,005 19,540,039
2007 Conversion 87,913 0.5 39,167,991 43,956:50 19,583,996
2008 Conversion 20,037 0.5 39,188,028 10,018:50 19,594,014
B-Share
0
20
40
60
80
100
120
140
160
10 000
2 000
4 000
6 000
8 000
Share trading volume (1000s)
19941995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
OMX Stockholm_PI
THE SKISTAR SHARE30
SHARE STRUCTURE, 31 AUGUST 2013
Class of shares
Number
of shares
Number
of votes Capital, % Votes, %
A 10 Votes 1,824,000 18,240,000 4.65 32.80
B 1 Vote 37,364,028 37,364,028 95.35 67.20
Total 39,188,028 55,604,028 100 100
OWNERSHIP CATEGORIES, 31 AUGUST 2013
Category
Number
of shares Participations, %
Swedish private individuals 27,290,342 69.64
Swedish institutional ownership 8,224,212 20.98
Foreign private individuals 77,005 0.20
Foreign institutional ownership 3,596,469 9.18
Total 39,188,028 100.00
LARGEST SHAREHOLDERS 31 AUGUST 2013
Shareholder A-Shares B-Shares Capital, % Votes, %
Mats Paulsson including company and family 1,824,000 6,583,807 21.46% 44.64%
Erik Paulsson including company and family 7,543,973 19.25% 13.56%
Lima Jordägande Sockenmän 1,836,658 4.69% 3.30%
Per-Uno Sandberg 1,525,000 3.89% 2.74%
Investment AB Öresund 916,554 2.34% 1.65%
Mats Qviberg including family 909,011 2.32% 1.63%
JPM Chase NA 824,530 2.10% 1.48%
Lannebo Småbolag Fonder 632,177 1.61% 1.14%
The Fourth Swedish National Pension Fund 434,348 1.11% 0.78%
SEB Sverigefond 400,550 1.02% 0.72%
Nordea Bank Norge Nominee 334,013 0.85% 0.60%
Banque Öhman S.A. 332,172 0.84% 0.59%
Mats Årjes including company 320,304 0.82% 0.58%
Handelsbanken Fonder 300,188 0.77% 0.54%
AMF Aktiefond 300,000 0.77% 0.54%
Swedbank Robur Småbolagsfond Sverige 265,713 0.68% 0.48%
Swedbank Robur Småbolagsfond Norden 248,100 0.63% 0.47%
Skialp AS 204,068 0.52% 0.37%
Catella Sverige Select 200,000 0.51% 0.36%
Other 13,252,862 33.82% 23.83%
Total 1,824,000 37,364,028 100.00% 100.00%
DATA PER SHARE
2012/13 2011/12 2010/11 2009/10 2008/09
Share price, SEK 81:00 81:25 97:50 123:75 111:00
Average number of shares 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028
Number of shares after full conversion 39,188,028 39,438,028 39,438,028 39,438,028 39,438,028
Income, SEK 3:49 3:99 4:61 8:52 6:96
Income after full conversion, SEK 3:49 3:99 4:58 8:46 6:92
Cash flow before changes in working capital, SEK 9:26 8:46 9:44 13:62 12:81
Cash flow from operating activities, SEK 10:18 7:94 9:32 12:51 12:57
Share price/cash flow 8.7 9.6 10.3 9.1 8.7
P/E ratio 23 20.00 21.00 15.00 16.00
Dividend, SEK 2:50 2:50 3:50 5:50 5:00
Direct return, % 3.1 3.1 3.6 4.4 4.5
Equity, SEK 38 37 37 38 35
Share price/equity, % 214 219 261 324 317
31SHAREHOLDER BENEFITS
SHAREHOLDER BENEFITS
EXAMPLE
On 1 September 2012, Kristina purchased 200 SkiStar shares for SEK 16,250. During the winter school holidays, she and her husband, together with their two children, aged 10 and 12, visited Sälen for a ski holiday. One year later, on 31 August 2013, Kristina had received the following returns on her SkiStar shares.
Dividend SEK 2.50/share x 200 shares + SEK 500
15% discount
on family SkiPasses
2 6-8 day adult SkiPasses at SEK 1,715 each
plus 2 6-8 day children’s SkiPasses at SEK 1,370 each
+ 926 SEK
15% discount
on family ski hire
2 6-8 day complete sets of adult ski equipment, medium at SEK 805 each
plus 2 6-8 day complete sets of children’s ski equipment, medium, at SEK
370 each+ 352 SEK
15% discount
on family ski school 4 group ski school courses at SEK 930 + SEK 558
Total return, SEK 2,336
Total return, % 14.4%
Shareholders in SkiStar can take advantage of a wide range of benefi ts
Many of SkiStar’s shareholders are also guests at SkiStar resorts. As guests, shareholders gain first-hand experience of the Company’s operations.
SkiStars Shareholders owning more than 200 SkiStar shares are entitled to discounts on all of SkiStars destinations. These discounts amount to 15% on SkiPass, ski rentals and ski schools arranged by SkiStar, and also apply to the families of shareholders (wife/husband/partner and children under 18). The easiest way to take advantage of these discounts is by advance book-ing at skistar.com.
For further details regarding how to register in the shareholders’ register and about shareholder benefits, please visit skistar.com.
32 BUSINESS AREA DESTINATIONS
BUSINESS AREA DESTINATIONSSkiStar operates the five largest ski resorts in the nordic region, where do you want to go?
BUSINESS AREA DESTINATIONS 33
SKI RENTAL SALES, per skier day, SEK
0
10
20
30
40
50
12/1311/1210/1109/1008/09
SEK
TrysilHemsedalVemdalen
ÅreSälen
SKI PASS SALES,per skier day, SEK
100
150
200
250
12/1311/1210/1109/1008/09
SEK
TrysilHemsedalVemdalen
ÅreSälen
SKI SCHOOL SALES, per skier day, SEK
0
5
10
15
20
HemsedalVemdalenÅre
Sälen
12/1311/1210/1109/1008/09
SEK
OCCUPANCY RATE, accommodation, %
20 000
25 000
30 000
35 000
40 000
Number of beds%
50
60
70
80
90
100
Occupancy rate
12/1311/1210/1109/1008/09
Mediated beds
LOCATION OF THE DESTINATIONSSkiStar owns and operates ski resorts in alpine destinations in Sälen, Åre and Vemdalen in Sweden and in Hemsedal and Trysil in Norway. Sälen is situated in the north-western part of the province of Dalarna, 420 km from Stockholm. Vemdalen is situated on the border between the provinces of Jämtland and Härjedalen, 480 km northwest of Stockholm. Åre is situated in Jämtland, 650 km northwest of Stockholm. Hemsedal is situated 230 km northwest of Oslo and Trysil 210 km northeast of Oslo.
STRATEGIC PRODUCT AREASAlpine Skiing/Ski Lift/SkiPassAlpine skiing is the Group’s core business. The majority of SkiStar’s profits are generated by the sale of SkiPasses. The marginal revenue for each additional SkiPass that is sold is high. Sales of SkiPasses during the 2012/13 financial year totalled MSEK 927 (857). The average price change was 3.3%. The Group’s market share of SkiPass sales during the financial year in Sweden was 49% (50%) and in Norway it was 28% (29%). In Scandinavia, it decreased to 39% (41%). The number of skier days within the Group, whereby one skier day is a day’s skiing with a SkiPass, amounted to 4,283,000 (4,084,000).
Mediated accommodationIn order to ensure its operations, SkiStar needs to oversee the leasing of a large number of beds at all of its destinations. In this manner, the occupancy rate can be optimized and possible weak sales can be corrected at an early stage via proactive marketing efforts. The occupancy rate in cabins and apartments owned and mediated by the Group, amounted during the 2012/13 season (Christmas week – 30 April) to 74% (70%). Income from accommodations amounted to MSEK 205 (202).
Ski RentalIn order to ensure that sufficient amounts of ski equipment are available for rental and that the equipment is of the required quality, ski rental operations have been identified as a stra-tegically important area for SkiStar. During the financial year, SkiStar operated a total of 24 ski rental outlets, nine in Sälen, eight in Åre, two in Vemdalen, two in Hemsedal and three in Trysil. Net sales from ski rentals remained unchanged at MSEK 134 (134).
Ski SchoolSkiStar operates its own ski schools in all of its destinations, except in Trysil, where SkiStar’s participating interest in the ski school is 35%. Ski school operations are strategically important for SkiStar, as a life-long interest in skiing is established and long-term contacts are forged between the destination, the skiing instructors and the guests. Children and young-sters who learn to ski early in life often develop a lasting interest in the sport, which they, in turn, pass on to their children. Net sales for the
ski schools amounted to MSEK 46 (45) during the financial year. The number of learners at SkiStar’s wholly-owned ski schools amounted to 73,000. This figure excludes the ski school in Trysil, in which SkiStar only has a partici-pating interest.
OTHER PRODUCT AREASSporting goods outletsThe Company operates one sporting goods outlet in each of Sälen, Åre and Hemsedal and two in Vemdalen. In all of the Group’s rental locations, sports equipment associated with alpine skiing is sold. During the financial year 2012/13, the Group’s sporting goods outlet operations reported net sales of MSEK 70, which is the same as in the previous year.
Property ServicesCaretakers, carpenters, electricians, cleaners and other service personnel are employed in the product area, Property Services. Revenues within Property Services are comprised of rental income for SkiStar’s premises, compen-sation for cabin service and cleaning. Income amounted to MSEK 124 (110) during the financial year.
OtherOther income includes income from events, advertising sales, kiosks, and sales of the Ski*Direct card (electronic SkiPass). Other income amounted to MSEK 159 (134) during the financial year; MSEK 21 of the increase
compared to the previous year is attributable to the takeover of operations at Experium in Sälen.
INVESTMENTSNet total investments were MSEK 106 and were comprised primarily of investments in replacements, as well as investments initiated prior to the winter season 2013/14.
STOCKHOLMOSLO
KÖPENHAMN
HELSINGFORS
DESTINATIONS SWEDEN34
DESTINATIONS SWEDEN
OPERATING SEGMENT, MSEK
Destinations Sweden 2012/13 2011/12
Income from external customers 1,145 1,064
Income from other segments 25 24
Operating expenses -847 -770
Operating expenses from other segments -51 -51
Income from associated companies - -
Depreciation/amortisation -126 -129
Net income for the segment 146 138
Operating margin for the segment, % 12 13
EARNINGS TREND, Sweden
% MSEK
600
800
1000
1200
0
5
10
15
20
25
12/1311/1210/1109/10Income from external customersOperating margin
Revenues and income per operating segment 1 September 2012-31 August 2013. Common Group expenses have been allocated according to assessed benefits.
NET SALES AND INCOMEExternal net sales in the Destinations’ Swedish operations increased by MSEK 81 to MSEK 1,145 and operating profit increased by MSEK 8 to MSEK 146. Last year’s income benefited from a tax dispute settled in favour of SkiStar, which meant that personnel expenses were reduced by MSEK 13. The Swedish destina-tions Sälen and Vemdalen report increased sales and income, while Åre report a slightly lower income compared with the previous year. Sales of SkiPasses in the Swedish operations increased by MSEK 50 (9%), to MSEK 619.
DESTINATIONS NORWAY 35
DESTINATIONS NORWAY
OPERATING SEGMENT, MSEK
Destinations Norway 2012/13 2011/12
Income from external customers 514 487
Income from other segments 6 9
Operating expenses -371 -358
Operating expenses from other segments -21 -24
Income from associated companies 1 1
Depreciation/amortisation -74 -76
Net income for the segment 55 39
Operating margin for the segment, % 11 8
EARNINGS TREND, Norway
% MSEK
Income from external customersOperating margin
300
400
500
600
0
5
10
15
20
12/1311/1210/1109/10 Revenues and income per operating segment 1 September 2012-31 August 2013. Common Group expenses have been allocated according to assessed benefits.
NET SALES AND INCOMEExternal net sales in the Destinations’ Norwegian operations increased by MSEK 27 to MSEK 514 and the operating profit increased by MSEK 16 to MSEK 55. Trysil and Hemsedal report increases of sales and operating profit for the financial year. The sales of SkiPasses decreased in local currency by MNOK 24 (10%) to MNOK 271, and in SEK by MSEK 20 (7%) to MSEK 308.
36 SÄLEN
RESORTS AND FOCUSSälen consists of four resorts – Lindvallen, Högfjället, Tandådalen and Hundfjället. Sälen is situated in the northwest of the province of Dalarna, approximately 420 km from Stockholm and 460 km from Gothenburg. The four resorts are interconnected into two large skiing areas – Lindvallen/Högfjället and Tandådalen/Hundfjället.
Lindvallen is the destination of choice for many families with children. Lindvallen is
home to the Nordic countries’ largest children’s and beginners’ slopes, as well as Sweden’s most frequented ski-slope, Gustavbacken, with its Snowman standing at the top of the slope. It’s also home to the Pink Park, designed by one of Sweden’s best fun park skiers, offering fun park-skiing for everyone. Högfjället offers all the classic winter holiday ingredients, with an easy to navigate ski area and the Högfjälls-hotell acting as a natural meeting point. The pace is a little slower and the atmosphere cosier.
Tandådalen is a favourite destination for families with teenagers who enjoy skiing and snowboarding. Tandådalen offers, among other things, one of Sweden’s greatest fun parks, Tandådalen Super Park, some of Sälen’s most challenging slopes, but also the less demanding slopes of Tandådalen Östra. Hundfjället, with its genuine winter atmosphere, offers a variety of skiing for the entire family. Hundfjället’s adventure forest Trollskogen (“Troll Forest”) is home to 450 unique trolls spread out along a
SÄLEN 37
SÄLEN IN FIGURES
2012/13
Rented beds 14,455
Occupancy rate, % 83
Ski school students, nr 37,388
Rental ski equipment, nr 13,752
Ski days nr 1,392,000
Number of lifts 86
Lift capacity, skiers per hour 82,500
Number of slopes 117
Number of children’s areas 12
Longest slope, km 2.5
Total length of groomed slopes, km 82
Maximum vertical drop, m 303
Highest groomed ski area,
metres above sea level (MASL)860
Total area of groomed slopes,
square metres2,877,000
Area covered by snow-making
systems, square metres1,850,000
Lit up slopes, nr 31
Fun parks, nr 11
PROPORTION OF GUESTS per nationality
Sweden, 89%
Norway, 1%
Denmark, 9%
Other, 1%
SKIER DAYS
st
1 000 000
1 500 000
2 000 000
12/1311/1210/1109/1008/09
OCCUPANCY RATE
10 000
11 000
12 000
13 000
14 000
15 000
50
60
70
80
90
100
Occupancy rate
12/1311/1210/1109/1008/09
% Number of beds
Mediated beds
1.3 km winding and undulating forest slope. Sälen is also the home of Experium, an
experience centre covering 11,500 square metres, which includes restaurants, a bowling alley, an adventure pool, a spa/sauna section, a cinema (3D), and much more.
OPERATIONSSkiStar’s operations in Sälen comprise the ski-ing area, nine ski rental outlets, four ski schools and a sporting goods outlet. Operations in the skiing area are conducted almost exclusively on land owned by SkiStar. SkiStar annually books approximately 14,500 beds in the area, 2,000 of which are owned by SkiStar. In addition, a hotel, Sälen’s Högfjällshotell, two sporting goods outlets and all of the restaurants at the slopes are leased to external operators. SkiStar also manages Hammarbybacken in Stockholm within its Sälen operations.
MARKETThe number of skier days increased by 4.5% to 1,392,000. The occupancy rate for objects owned and mediated by SkiStar was 83% (81%).
The majority of guests at Sälen come from Sweden (mainly from southern and central Sweden). A significant portion of Sälen’s guests also come from Denmark (9%). The majority of guests take their own car to Sälen, but it is also possible to take direct buses from Stockholm, Gothenburg, Malmö and Copenhagen. There are also flights from Ängelholm to Mora, with shuttle buses to Sälen. The Swedish and Danish markets are expected to remain the most important markets for Sälen.
INVESTMENTSInvestments during the 2012/13 season amounted to MSEK 58. Among other things, they included the expansion of the experience area Valletorget in Lindvallen, and a 1960’s inspired heated cabin in Tandådalen, the latter as part of Tandådalens 50th anniversary. The project concerning the water supply from Västerdalälven continued during the year, and will continue to do so during the 2013/14 season.
NEW FEATURESGoing in to the 2013/14 season, the Company is continuing to develop activities offered in the ski area to provide an even better skiing experi-ence for the guests.
With the introduction of the child concept Valles World, Valle will move into Tandådalen and Hundfjälllet. Sälen will further develop its existing Valle concept with for instance more opportunities to meet Valle on Valle’s show or in “meet and greets”, three new Valle’s ski countries, located in Lindvallen, Eastern Tandådalen and Hundfjälllet and Valle’s children’s ski school - Valle becomes the mascot for the ski school for children age 3-9, which means that Valle will appear on the diploma, giveaways, vests and turning aids. Hundfjälllet
extended Trollskogen from Trollens Fäbod down to Trolliften. The area is lighted with LED lighting that moves and changes colour so the skiing will be extra exciting for our young-est guests. New wooden figures will line the new route. In connection to this, Trolliften will also be lit with LED lighting.
To meet the guest’s demand for flexible transportation on the mountain, the timetable has been extended for the popular “Ski and Bath” bus. The bus route premiered during the 2012/13 season and is aimed at creating easy transportation between the skiing area and the swimming pool at Experium where many guests have free entrance through the “Sälen-Passet + pool” offer.
As part of the process to inspire and stimulate interest in alpine skiing in the Malung-Sälen municipality, all children and adolescents up to 15 years will travel for free in the SkiStar Sälen ski area during the winter season 2013/14.
DEVELOPMENT OPPORTUNITIESDue to its geographical location, accessibil-ity and well-established brand, a continued high demand for winter vacations in Sälen is expected. Experium in Lindvallen opened in December 2009 and brought along new opportunities to increase the number of guests, not only during the winter season, but also in the off-season.
Continued development, including new ski-ing areas, is planned for Lindvallen’s southern skiing area, the area between Lindvallen and Högfjället, and also in the Trollbäck area in Hundfjället and in Tandådalen. Approximately 10,000 additional beds are planned to be added in Sälen over the next few years. There is potential for an additional 5,000 beds in the Lindvallen/Högfjället area. There are plans for approximately 4,700 new beds in the future. All accommodation is situated close to the ski lifts.
Regarding guest development, there are good possibilities for increasing the number of guests from Denmark, as well as the number of guests during the off-season. A possible devel-opment of Airport centre in the area will also imply large growth opportunities, above all in the foreign markets.
OPERATIONS SkiStar’s operations in Åre include the ski area, accommodation booking, eight ski rental outlets, a sporting goods outlet and a ski school. Approximately 35% of the land on which operations in the ski area are conducted is owned by SkiStar and the remaining 65% is held through leases of between 30-50 years. At the end of the leasing periods, SkiStar has the right to renew the agreements on the same
choice of ski slopes and varied terrain.Åre By is the most well-known destination.
Fantastic skiing can be found here, in the direct vicinity of a small town with a great atmosphere and a long tradition. Åre By has a wide selection of restaurants, entertainment and activities. Duved is situated west of Åre By, and, like Åre By, is a resort with a long-standing tradition. Duved has a slightly calmer pace and, consequently, suits all types of skiers.
RESORTS AND FOCUSÅre, which is situated 650 km northwest of Stockholm, consists of three resorts: Åre Björnen, Åre By and Duved. Each resort has its own profile and target group. Åre Björnen, the resort located farthest to the East, is a favourite with children and is also called Barnens Björnen (“The Children’s Bear”). Just one lift away, the more challenging skiing offered at Åreskutan can be found, with its extensive
38 ÅRE
ÅRE 39
PROPORTION OF GUESTS per nationality
Sweden, 72%
Norway, 11%
Denmark, 3%
Finland, 4%
UK, 1%
The Netherlands, 1%
Russia, 5%
Baltic states, 3%
Other, 1%
SKIER DAYS
st
800 000
1 000 000
1 200 000
12/1311/1210/1109/1008/09
OCCUPANCY RATE
4 500
5 000
5 500
6 000
6 500
7 000
Number of beds
50
60
70
80
90
100
Occupancy rate
12/1311/1210/1109/1008/09
Mediated beds
%
ÅRE IN FIGURES
2012/13
Rented beds 6,200
Occupancy rate, % 70
Ski school students, nr 14,129
Rental ski equipment, nr 5,678
Ski days, nr 986,000
Number of lifts 41
Lift capacity, skiers per hour 51,555
Number of slopes 111
Number of children’s areas 4
Longest slope, km 6.5
Total length of groomed slopes, km 101
Maximum vertical drop, m 890
Highest groomed ski area, metres
above sea level (MASL)1,274
Total area of groomed slopes,
square metres3,204,478
Area covered by snow-making
systems, square metres2,352,760
Floodlit slopes 7
Fun parks, nr 3
terms. SkiStar rents out approximately 6,200 beds annually in Åre, of which the Group owns around 800. In addition, the slope restaurants Linbanecaféet, Stormköket, VM Grillen and Timmerstugan, the food shop in Åre Björnen, the restaurant in the Hotel Renen and the res-taurant, night club and conference centre in Åre Fjällby are also leased to external operators.
MARKETThe number of skier days increased by 2% to 986,000. The weather in Åre during the last winter was generally good, but the destination suffered an intense low pressure in week 9 with strong winds and rain that turned into intense snowfalls which affected revenue negatively. The occupancy rate of objects owned and mediated by SkiStar was 70% (67%). Swedish guests in Åre represent approximately 72% of visitors, most of whom are from the Mälar-dalen region around Stockholm. The largest foreign market is Norway, followed by Russia and Finland.
Åre is continuing its long-term commitment to foreign markets and by further development of the prioritised markets and work with annual international events the proportion of foreign guests should continue to increase. The goal is also to arrange another Alpine Ski Champion-ship. The candidature is in progress and the vote on who will host the Alpine World Ski Champion ships 2019 takes place in June 2014.
INVESTMENTSInvestments for the 2012/13 season amounted to MSEK 17, and mainly consisted of the strengthening of the snow-making system, reinvestments in grooming machines and a continuation of improving the floodlit slope “I Jättars Spår” (“In the Trail of Giants”), which is Sweden’s, and one of the world’s, longest electrically lit slopes.
NEWSIn preparation for the season 2013/14, the biggest lift investment since the cable car was built was made in Åre. Three new modern chairlifts built in strategic locations to further improve and strengthen the Åre ski area. The expansion of the ski area can be compared with 26 full sized football fields. A four-chair lift built in Tegefjäll replaces the old Tegefjällsliften. Extensive ground work has also been performed in the area, making the slopes clearly improved through widening and realignment. Tegefjäll which is known for its fantastic forest skiing will be even better by a large part of the forest adjacent to the new lift has been thinned out to make way for a safe and fun off-piste skiing. From Fjällgården up to Totts mountain station, a new linkable six-chair lift is under construction, the slopes here have also been improved. Additional snowmaking capacity has also been installed to ensure an early start to the season and good snow conditions. From Högåsliften’s Valley Station to Sadelliftens mountain station, a new six-chair lift with hoods and heated seats, is
under construction. These two six-chair lifts even more clearly connect central Åre with Björnen. Two great ski areas that fit the mod-ern demands of skiing on wide and long slopes are also being created.
For the second consecutive year, Åre hosted World Cup competitions in Alpine skiing and Skicross. Plans are also in place for hosting World Cup competitions in Freestyle. This clearly shows Åre’s breadth and strength as an international ski destination. In March, week 10, the alpine circus arrives in the village, with the arrangement of the FIS World Cup for women, an annually recurring event on the Åre alpine scene. The following week, Åre will host the World Cup competitions in Skicross. This means that Åre, as one of very few organisers in the world has been entrusted this year to arrange at least two major events within the International Ski Federation.
DEVELOPMENT OPPORTUNITIESThanks to Åre’s good infrastructure condi-tions, with a direct train to the village of Åre, the European route E14 running through the village, as well as two nearby international airports, Åre-Östersund Airport and Vaernes Airport in Trondheim, the potential for development is very good. Continued invest-ment in reasonably priced transportation, in conjunction with the previous years’ significant increase in bed capacity, provides Åre with additional and improved possibilities to receive a larger number of skiing guests.
Because of extensive investments made a couple of years ago and the investment which began in Åre Björnen for the 2010/11 winter season, Åre is well prepared for an increased stream of guests to the slopes.
By being entrusted to host three Alpine World Cup competitions in one season, Åre has clearly shown its diversity and strength as an internationally competitive ski destination.
40 VEMDALEN
VEMDALEN 41
PROPORTION OF GUESTS per nationality
Sweden, 97%
Norway, 0%
Denmark, 1%
Finland, 1%
Baltic states, 1%
SKIER DAYS
st
400 000
500 000
600 000
12/1311/1210/1109/1008/09
OCCUPANCY RATE
0
1 000
2 000
3 000
4 000
5 000
6 000
50
60
70
80
90
100
Occupancy rate
12/1311/1210/1109/1008/09
% Number of beds
Mediated beds
VEMDALEN IN FIGURES
2012/13
Rented beds, nr 5,800
Occupancy rate, % 69
Ski school students, nr 10,674
Rental ski equipment, nr 4,376
Ski days 545,000
Number of lifts 34
Lift capacity, skiers per hour 35,632
Number of slopes 55
Number of children’s areas 4
Longest slope, km 2.3
Total length of groomed slopes, km 49.9
Maximum vertical drop, m 470
Highest groomed ski area, metres
above sea level (MASL)946
Total area of groomed slopes,
square metres1,606,414
Area covered by snow-making
systems, square metres1,283,082
Floodlit slopes 15
Fun parks, nr 3
RESORT AND FOCUSThe destination Vemdalen lies approximately 480 kilometres northwest of Stockholm, on the border between the Counties of Härjedalen and Jämtland, and consists of three resorts: Vemdalsskalet, Björnrike and Klövsjö/Storhogna. Vemdalsskalet is the largest resort. In addition to varied skiing, Vemdalsskalet also offers a broad range of entertainment and activities. Björnrike is the choice of families with children. Good ski slopes, combined with accommodation close to the ski lifts and good service facilities make the mountain holiday easy. Klövsjö is a traditional mountain retreat with a long tradition, also offering challenging skiing for the experienced skier. Storhogna offers the option of combining skiing with other activities. For example, Sweden’s first mountain spa can be found here.
OPERATIONSSkiStar’s operations in Vemdalen include the ski area, ski schools, two ski rentals and two sporting goods outlets. Approximately 5,800 beds in the area are mediated through SkiStar. Approximately 58% of the land on which operations in the ski area are conducted is owned by the Group. The remaining land is leased on a long-term basis, with the right to renew the lease upon expiration. Two slope restaurants in Vemdalsskalet are sublet to external operators.
MARKETThe number of skier days increased by 9%. The occupancy rate of objects owned and mediated by SkiStar was 69% (65%). Nearly all of Vemdalen’s visitors come from Sweden, with the Mälardalen region and the industrial coast from Gävle to Härnösand comprising the most important catchment areas. The primary target group is families with children. The vast majority of guests travel to Vemdalen in their own cars. During the 18 weeks of the winter season there is daily train traffic from Stockholm via Mora to Röjan/Vemdalen. During the same period, you can go by over-night train from Malmö via Gothenburg and Mora to Röjan/Vemdalen. From Röjan/Vem-dalen the distance by shuttle bus to Klövsjö is 11 km, Vemdalsskalet 22 km and Björnrike 35 km. On location in Vemdalen, a major upgrade of the local bus service is under way to adapt to the rail links, and to improve the ability to visit the area without a car. The bus line “Härjedalingen” frequently traffics Stockholm-Vemdalen via Uppsala/Gävle/Bollnäs. Air travel to Vemdalen is available via Östersund or Sveg.
INVESTMENTSInvestments for the 2012/13 season amounted to MSEK 9, and mainly comprised a new T-bar lift, a new groomer and the expansion of the snow system.
NEWSFor the 2013/14, a large number of plots are completed for sales in Klövsjö and Storhogna.
For example, Grubbvallen in Klövsjö with 40 plots in total and a superior location next to the newly built lift Katrina.
At Vemdalsskalet, the construction of the new centre, Skalets Torg, continues. Eventually comprising eight planned, large building com-plexes, the new centre is half way to comple-tion with four completed building complexes. Construction of the fifth building complex began in August 2013. All building complexes have commercial premises at ground floor, and accommodation for rent on floors 1-3. One of the building complexes, Hovde Hotell, contains hotel accommodation.
In Björnrike, the five-year project for the renovation of the entire road network, which began in 2012, continues, involving surfacing work, separate sidewalks, lighting, signposts etc. News in Björnrike for the winter 2013/14 is twelve new apartments for rent in Lingon-kullen. Furthermore, a new restaurant at Björnidet and a new large heated cabin that is in place at Björnvallen.
DEVELOPMENT OPPORTUNITIESVemdalen, with its three ski areas Björnrike, Vemdalsskalet and Klövsjö/Storhogna, has had very strong growth in relation to its size in the past 8 years. A growth that can be attributed to very good physical conditions for skiing in all its forms, proximity to the Swedish market, and strong improvements in the product, value for money and strong sales channels via SkiStar. Expansion continues for the winter 2013/14. The area’s total investment level for summer and fall of 2013 is about MSEK 140.
42 HEMSEDAL
HEMSEDAL 43
PROPORTION OF GUESTS per nationality
Sweden, 23%
Norway, 40%
Denmark, 27%
UK, 1%
The Netherlands, 2%
Germany, 4%
Russia, 2%
Other, 1%
SKIER DAYS
st
400 000
500 000
600 000
700 000
12/1311/1210/1109/1008/09
OCCUPANCY RATE
2000
3000
4000
5000
6000
50
60
70
80
90
100
Occupancy rate
12/1311/1210/1109/1008/09
% Number of beds
Mediated beds
HEMSEDAL IN FIGURES
2012/13
Rented beds, nr 4,700
Occupancy rate, % 66
Ski school students, nr 7,184
Rental ski equipment, nr 3,397
Ski days, nr 534,300
Number of lifts 18
Lift capacity, skiers per hour 26,000
Number of slopes 47
Number of children’s areas 1
Longest slope, km 6
Total length of groomed slopes, km 44
Maximum vertical drop, m 810
Highest groomed ski area, metres
above sea level (MASL)1450
Total area of groomed slopes,
square metres1,470,000
Area covered by snow-making
systems, square metres602,000
Floodlit slopes 10
Fun parks, nr 5
RESORT AND FOCUSHemsedal is situated 230 kilometres northwest of Oslo and 280 kilometres west of Bergen. The destination, referred to as Scandinavia’s Alps, is a complete ski resort, offering a wide selection of activities for skiers of all ages. In Hemsedal, Norway’s largest nursery slope area can be found, alongside extremely challenging slopes for the most advanced skiers.
OPERATIONSSkiStar’s activities in Hemsedal include the skiing area, a ski school, two ski rentals and two sporting goods outlets. A total of approx-imately 4,700 beds are mediated through SkiStar in the area. Business operations in the ski area are conducted on leased land. The leases are long term and SkiStar has the right of renewal upon termination of the leases. Four slope restaurants are sublet to external operators.
MARKETThe number of skier days increased by 9.5% to 534,000. The occupancy rate for accommoda-tion owned and mediated by SkiStar amounted to 66%.
Hemsedal has a large proportion of foreign guests; over half of the visitors come from abroad. The majority of the foreign guests come from Denmark and Sweden, but Hemsedal is also a popular ski destination among countries such as Germany, the UK and the Netherlands. An effort, of which the results are beginning to become substantial, is the marketing activities undertaken within the Russian market. The combination of foreign markets with the Norwegian contributes to a high occupancy level throughout the entire winter season. The Norwegian guests come pri-marily from the area around Oslo and Bergen and most of them travel with their own cars. The foreign guests travel either by ferry, in their own cars, with chartered flights or by bus.
INVESTMENTSInvestments for the 2012/13 season amounted to MSEK 14 and consisted mainly of expanded
“Ski in – Ski out” opportunities for easier access to the skiing area, upgrade of the snow-making system and an increase in the number of venues and attractions in the ski area.
NEWSFor the 2012/13 season, Hemsedal is developing and improving its park and Ski-cross offering. Hemsedalparken moved to offer a better, safer and more flexible park offering. On the park’s old location, a new Skicross course was built. The existing Skicross course was also extended with 350 meters. The snow system was upgraded to optimise production at higher temperatures, which in turn results in a more efficient snow production and that more slopes may open earlier. In the Skars-nuten area, availability is increasing as 450 beds will become “Ski in – Ski out”. Skistua is renovating its premises in order to provide better service and offer a stronger à la carte concept to ski guests. Also, the heated cabin in Fjellkafeen is being refurbished and undergoing an expansion and a significant upgrade of the toilet facilities.
DEVELOPMENT OPPORTUNITIESThere are opportunities to continue the develop ment of additional accommodation options in Hemsedal. The municipality has approved a zoning plan for the area around the resort. Hotels, apartments and cabins can all be developed here. In addition to the approximately 6,300 commercial beds already available in Hemsedal, the municipality has approved zoning plans for an additional 5,500 beds.
Hemsedal has significant opportunities to continue to attract more families through major investments in the beginners’ ski area and in the children’s area. There are also good reasons to assume that the number of foreign guests will continue to grow, thanks to foreign investments and well-established partnerships with several tour operators.
44 TRYSIL
TRYSIL 45
PROPORTION OF GUESTS per nationality
Sweden, 31%
Norway, 25%
Denmark, 31%
Finland, 1%
UK, 1%
The Netherlands, 2%
Germany, 5%
Russia, 3%
Baltic states, 1%
SKIER DAYS
st
600 000
800 000
1 000 000
12/1311/1210/1109/1008/09
OCCUPANCY RATE
0
1 000
2 000
3 000
4 000
5 000
6 000
50
60
70
80
90
100
Occupancy rate
12/1311/1210/1109/1008/09
% Number of beds
Mediated beds
TRYSIL IN FIGURES
2012/13
Rented beds, nr 5,800
Occupancy rate, % 65
Rental ski equipment, nr 6,291
Ski days, nr 827,000
Number of lifts 31
Lift capacity, skiers per hour 35,200
Number of slopes 66
Number of children’s areas 3
Longest slope, km 5
Total length of groomed slopes, km 71
Maximum vertical drop, m 685
Highest groomed ski area, metres
above sea level (MASL)1,100
Total area of groomed slopes,
square metres2,380,000
Area covered by snow-making
systems, square metres950,000
Floodlit slopes 6
Fun parks, nr 3
RESORT AND FOCUSTrysil is situated 210 kilometres northeast of Oslo. The mountain, Trysilfjället, offers 71 kilometres of skiing on three sides of the mountain, and is thus able to provide skiing suitable for both families with children and for more experienced skiers. Trysil is Norway’s largest ski resort and is highly accessible thanks to its geographic location.
OPERATIONSSkiStar’s operations in Trysil comprise the ski area, three ski rentals, the ski school, in which SkiStar has a minority interest amounting to 35%, and a sales department, which arranges the rental of 5,800 beds (excluding the hotel) in the area. Operations in the ski area are con-ducted on leased land. The leasing agreement has a tenure of 50 years, with the possibility for SkiStar to renew upon expiration. SkiStar also sublets 13 slope restaurants in Trysil to external operators.
MARKETThe number of skier days increased by 3.6% to 827,000. The occupancy rate for accommoda-tion owned and mediated by SkiStar increased to 65% (60%).
Trysil’s largest markets are Denmark and Sweden, with 31% of the guests each, and Norway, with 25% of the guests. The Danish guests mainly arrive in their own cars. The majority of Norwegian guests come from Oslo and, therefore, they also prefer to travel in their own cars. The important markets in the
future will be northern Germany and Russia. The main target group in all markets is families with children.
INVESTMENTSFor the 2012/13 season, MNOK 13.9 was invested in product improvements. Among other things, ski venues for Speedski, Self Timer, parallel slalom and cross trails. In addition, improvements were made in all the parks, two green, one blue and one with both red and black slopes. The slopes adjacent to the Park Inn Trysil Mountain Resort got lighting wherein the area around the hotel has become a part of the offered night skiing opportunities.
NEWSIn Trysil, it is all about skiing and, for the 2013/14 season, three new areas are being built, two slopes for snow waves and one for forest skiing. To slope No 75, pipes for snow-making have been laid so that Eksperten can be opened earlier and with better snow condi-tions. The restaurant Knettsetra has undergone extensive expansion and upgrading. A new, nearly 300 square-metres large restaurant wing will add 100 new seats. An additional 100 seats will be added outdoors thanks to a newly built terrace. The redevelopment also includes the expansion of the restaurant kitchen.
DEVELOPMENT OPPORTUNITIESThere are approximately 23,500 beds in Trysil at present, of which 11,300 are commercial. The municipal plan approves 38,400 beds in total in the area, so the development possibili-ties are significant. With the previous year’s investments in the ski area, the lift capacity amounts to more than 35,000 skiers per hour.
A possible development of the Airport Centre in the immediate area will also represent significant growth opportunities, primarily on foreign markets.
BUSINESS AREA PROPERTY DEVELOPMENT46
BUSINESS AREA PROPERTY DEVELOPMENTIncreased demand for plots of land has increased the sales profits for the financial year by MSEK 17.
BUSINESS AREA PROPERTY DEVELOPMENT The Business Area Property Development is operated by the wholly-owned subsidiaries, Fjällinvest AB in Sweden and Fjellinvest Norge AS in Norway. The companies own accom-modation properties for hire and land for development, and have participating interests in various real estate companies operating at SkiStar’s destinations.
THE BUSINESS AREA’S MISSIONThe Business Area Property Development’s mission is to:
Create growth in the construction of accom-modation at SkiStar’s destinations, with the largest possible return on the smallest possible capital investment.
Create growth in the value of the assets through their development, both indepen-dently and in conjunction with collaborative partners.
Establish, together with the destinations, long-term development plans for future investments at SkiStar’s destinations.
Manage and develop the SkiStar Vacation Club.
Create business opportunities through the acquisition of existing residential property and development land.
SALES AND INCOMEThe Business Area Property Development increased external net sales by MSEK 25 to MSEK 47, of which MSEK 27 (10) refers to profits from the sales of plots and apartments, MSEK 11 (11) refers to profits from the sales of
shares in SkiStar Vacation Club, and MSEK 9 (1) refers to other income. The costs within the Business Area have increased due to the associ-ated company Radisson Blu Trysil reporting an increased loss, of which MSEK 12 is deemed as non-recurring cost. Operating profit for the Business Area increased to MSEK 18 (12).
INVESTMENTS AND DISPOSALSInvestments within the Business Area Property Development totalled MSEK 38 (139), net, during the year. The investments primarily con-sisted of replacement investments and acquisi-tions of participations in associated companies. During the financial year, 17 plots of land were sold for a sum of MSEK 42 (16), with a profit of MSEK 27 (10). Shares in SkiStar Vacation Club have been sold at an amount of MSEK 14 (14), with a profit of MSEK 11 (11). The average profit per plot of land during the financial year was approximately MSEK 1.6, this included two larger plots. The estimated long-term average sales profit per plot is approximately MSEK 1.1.
PROPERTY PORTFOLIO AND VALUATIONThe Business Area’s assets consist of hotel properties, cabins and apartments, develop-ment land, as well as shares and participations in jointly-owned real estate companies. In total, the book value of residential assets, develop-ment land and shares and participations in jointly owned companies and associations was MSEK 925 (898). An external market valuation in September 2010 indicated a surplus value in Fjällinvest AB amounting to
MSEK 230. Development land assets amount to 5.4 million square metres (5.5) for which the book value is MSEK 39 (45). The majority of land assets were acquired many years ago, for which reason the book value of these is low. The decrease during the year is a result of the sale of plots. No market evaluation has been made for these assets, as it is difficult to make a reasonable assessment as to the possible development rate of land assets. Based on our assumptions and experience, it can be esti-mated that 50% of the land can be developed, which equates to 2,700,000 square metres. If the land were to be sold as plots, this would entail 2,700 plots at 1,000 square metres per plot.
SKISTAR VACATION CLUB SkiStar Vacation Club is a future-oriented form of housing based on the demands and requirements of the guests. The apartments are divided into weekly units and buyers receive, in addition to the weeks purchased, membership in the international exchange and placement organisation, RCI, as well as membership in SkiStar Vacation Club. This form of accommo-dation is cost effective, simple and flexible for the shared-ownership holder. Cost effectiveness is achieved either through the utilisation of a purchased week, compared with the cost of renting for an equivalent week, or by exchang-ing the week with travel abroad through RCI. In addition, the shared-ownership holder can purchase inexpensive journeys abroad through the RCI system. With SkiStar Vacation Club, a shared-ownership holder also receives a large number of advantages and benefits during
BUSINESS AREA PROPERTY DEVELOPMENT 47
OPERATING PROFIT
Business Area Property Development MSEK
MSEK
0
5
10
15
20
25
30
35
12/1311/1210/1109/1008/09
HOTELS, CABINS AND APARTMENTS
as well as development land
Sälen Åre Vemdalen Hemsedal Trysil Totalt
Hotels 1 1 – – 2* 4
Existing cabins and apart-
ments 293 68 68 48 3 480
Existing shared-ownership
cabins and apartments 180 7 8 – 183 378
Land holdings (number of
apartments that can be built)
– Completed zoning plans 310 193 232 – 16 751
– Ongoing zoning plans 176 238 – – 32 446
– Scheduled zoning plans 190 278 – 150 75 693
– Scheduled comprehensive plans 750 – – 300 – 1,050
*)The two holtels in Trysil are owned 50% via associated companies
their stay. Simplicity is achieved because the shared-ownership holder is not responsible for maintenance of their ownership share. Instead, the tenant-owner association, of which the shared-ownership holder is a part, assumes this responsibility. The apartment is always clean, warm, and ready ahead of arrivals. Flexibility is achieved as the shared-ownership holders can enjoy RCI’s entire range of over 5,000 destinations worldwide. SkiStar Vacation Club is currently offered in Sälen; however, the intention is that the concept will eventually be available at more destinations.
PLOTS OF LAND AND APARTMENTS FOR SALEDuring the past financial year, 15 private plots of land were sold in Sälen and Vemdalen as well as two larger plots of land for commercial construction, one in Åre and one in Sälen. There are 80 private plots still for sale in Vem-dalen and Sälen. Before Christmas, the sale of 92 newly renovated private apartments in Vem-dalen and Sälen will commence. In Sälen, there are 32 apartments in Trollbäcken in Hund-fjällen and 24 apartments in Timmerbyn in Lindvallen being put up for sale. In Vemdalen, there are 14 apartments in Solhyllan at Vem-dalsskalet and in Åre there are 22 apartments in Åre Fjällby being put up for sale.
DEVELOPMENT PROJECTSAt all destinations, the work of producing new future development projects within the real estate sector is ongoing. These projects are capital-intensive and will, therefore, to the greatest possible extent, be carried out in cooperation with other investors.
SälenIn Sälen, SkiStar owns large land development areas. The projects that have progressed the furthest, planning-wise, are Ski Apartment Hundfjället, an apartment complex with approx. 700 beds, the remaining phase for apartments in Solbacken in Tandådalen, with approx. 500 beds, an additional phase of SkiLodge Village in Lindvallen, with approx. 300 beds, as well as another apartment complex next to Experium in Lindvallen, with an additional 500 beds.
ÅreIn Åre, an area in Åre Björnen is zoning planned, right next to the new ski area with chairlifts, including 1,500 beds. The project is co-owned 50/50 with Peab. In Rödkullen, SkiStar is the minority owner in a larger devel-opment project together with two Norwegian partners. The area is not yet zoning planned, but is expected to generate up to 7,000 beds in the long run. In central Åre, in direct
connection to the cabin lift, SkiStar owns land for development of resident and commercial areas. The area is not yet zoning planned, but is expected to generate up to 1,300 new beds.
VemdalenIn Vemdalen, there is great activity among external investors in regard to construction of commercial beds. In all of the three areas, Vemdalsskalet, Björnrike and Klövsjö, new accommodation property is being built for commercial use, of which the largest develop-ment is located in Skalet city centre. SkiStar owns development land both in Vemdalsskalet and in Björnrike.
HemsedalIn Hemsedal, plans are being made for the development of an apartment complex in a partly-owned company including approx. 850 beds. SkiStar also owns a great deal of develop-ment land in Hemsedal for future development.
TrysilIn Trysil, the demand to build new commercial accommodations is small on account of the available capacity in the two large hotels Mountain Resort Trysil and Radisson Blu Trysil, where SkiStar is half-owner. 8000 sq. km worth of development land belong to the half-owned companies.
THE BUSINESS AREA’S ASSIGNMENTS
BUSINESS AREA
PROPERTY DEVELOMENT
ACQUISITIONS
/DISPOSALS
DEVELOPMENT
DESTINATIONS
GROWTH
ASSETS
GROWTH
CONSTRUCTION
DEVELOPMENT
SKISTAR VACATION CLUB
BUSINESS AREA PROPERTY DEVELOPMENT48
LIST OF PROPERTIES FOR THE BUSINESS AREA PROPERTY SWEDEN
Property name Municipality Area NameYear of
constructionLiving area, square km
Stores, square km
Total area, square km
Land, square km
Taxable value, TSEK
Västra Sälen 3:101 Malung-Sälen Lindvallen Timmerbyn 1999 584 584 2,333 9,584
Västra Sälen 3:102 Malung-Sälen Lindvallen Timmerbyn 1999 1,752 1,752 8,868 19,032
Västra Sälen 5:524 Malung-Sälen Lindvallen Timmerbyn 2004 730 730 3,118 10,835
Västra Sälen 5:508 Malung-Sälen Lindvallen Timmerbyn 2005 1,022 1,022 8,997 12,957
Västra Sälen 4:11 Malung-Sälen Lindvallen Bruna byn 1970 2,585 2,585 38,796 33,710
Västra Sälen 4:27 Malung-Sälen Lindvallen Röda byn 1980 3,752 3,752 25,199 34,942
Västra Sälen 3:51 Malung-Sälen Lindvallen Development land 133,042 1,000
Västra Sälen 3:93 Malung-Sälen Lindvallen Leased mark 29,273 11,875
Västra Sälen 3:114 Malung-Sälen Lindvallen Development land 4,838 1,031
Västra Sälen 3:115 Malung-Sälen Lindvallen Development land 5,781 1,031
Västra Sälen 5:3 Malung-Sälen Lindvallen Development land 1,583,457 372
Västra Sälen 5:10 Malung-Sälen Högfjället Development land 1979 324 324 80,297 1,188
Västra Sälen 5:17 Malung-Sälen Högfjället Development land 26,880 0
Västra Sälen 5:18 Malung-Sälen Högfjället Development land 852,500 0
Lima Besparingsskog 1:4 Malung-Sälen Tandådalen Solbacken 2006/2007 4,075 4,075 21,600 37,291
Lima Besparingsskog 1:4 Malung-Sälen Tandådalen Caravan camping 1982 160 160 30,117 793
Lima besparingsskog 1:7 Malung-Sälen Tandådalen Development land 2,260 719
Lima besparingsskog 1:18 Malung-Sälen Tandådalen Development land 2,567,666 0
Lima Besparingsskog 2:7 Malung-Sälen Tandådalen ICA/Snöloftet 1985 355 448 803 1,648 5,350
Lima Besparingsskog 2:13 Malung-Sälen Tandådalen Poolarium/Sport area 1996 944 944 1,888 3,879 8,800
Rörbäcksnäs 20:88 Malung-Sälen Hundfjället A+B och Annexet 1980/1996 1,100 1,100 3,521
Rörbäcksnäs 20:331 Malung-Sälen Hundfjället Trollbäcken 1999 280 280 995 2,142
Rörbäcksnäs 20:332 Malung-Sälen Hundfjället Trollbäcken 1999 280 280 1,049 2,142
Rörbäcksnäs 20:333 Malung-Sälen Hundfjället Trollbäcken 1999 280 280 935 2,142
Rörbäcksnäs 20:334 Malung-Sälen Hundfjället Trollbäcken 1999 280 280 1,068 2,142
Rörbäcksnäs 20:338 Malung-Sälen Hundfjället Trollbäcken 1999 1,120 1,120 4,244 8,400
Västra Sälen 1:64 Malung-Sälen Lindvallen F Non-developed plot of land 910 0
Västra Sälen 1:65 Malung-Sälen Lindvallen F Non-developed plot of land 925 0
Västra Sälen 1:67 Malung-Sälen Lindvallen F Non-developed plot of land 992 0
Västra Sälen 1:69 Malung-Sälen Lindvallen F Non-developed plot of land 986 0
Västra Sälen 1:70 Malung-Sälen Lindvallen F Non-developed plot of land 925 0
Västra Sälen 1:73 Malung-Sälen Lindvallen F Non-developed plot of land 931 0
Västra Sälen 1:76 Malung-Sälen Lindvallen F Non-developed plot of land 922 0
Västra Sälen 1:77 Malung-Sälen Lindvallen F Non-developed plot of land 913 0
Västra Sälen 1:78 Malung-Sälen Lindvallen F Non-developed plot of land 941 0
Västra Sälen 1:80 Malung-Sälen Lindvallen F Non-developed plot of land 984 0
Västra Sälen 1:81 Malung-Sälen Lindvallen F Non-developed plot of land 925 0
Västra Sälen 1:82 Malung-Sälen Lindvallen F Non-developed plot of land 918 0
Västra Sälen 5:557 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,080 743
Västra Sälen 5:558 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,034 736
Västra Sälen 5:559 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,071 742
Västra Sälen 5:562 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,024 734
Västra Sälen 5:563 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,225 764
Västra Sälen 5:564 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,156 754
Västra Sälen 5:565 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,110 747
Västra Sälen 5:566 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,178 757
Västra Sälen 5:567 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,200 761
Västra Sälen 5:568 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,242 767
Västra Sälen 5:569 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,051 738
Västra Sälen 5:570 Malung-Sälen Lindvallen V1 Non-developed plot of land 2,383 938
Västra Sälen 5:571 Malung-Sälen Lindvallen V1 Non-developed plot of land 1,854 859
Västra Sälen 5:572 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,271 851
Västra Sälen 5:573 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,290 854
Västra Sälen 5:574 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,111 827
Västra Sälen 5:575 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,033 815
Västra Sälen 5:576 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,183 838
Västra Sälen 5:577 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,049 818
Västra Sälen 5:578 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,001 811
Västra Sälen 5:579 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,068 821
Västra Sälen 5:580 Malung-Sälen Lindvallen V2 Non-developed plot of land 913 797
Västra Sälen 5:581 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,305 856
Västra Sälen 5:582 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,076 822
Västra Sälen 5:583 Malung-Sälen Lindvallen V2 Non-developed plot of land 955 804
Västra Sälen 5:584 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,096 825
Västra Sälen 5:585 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,100 826
Västra Sälen 5:586 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,184 838
Västra Sälen 5:587 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,223 844
Västra Sälen 5:588 Malung-Sälen Lindvallen V2 Non-developed plot of land 1,227 845
Västra Sälen 5:589 Malung-Sälen Högfjället Non-developed plot of land 453 502
Västra Sälen 5:590 Malung-Sälen Högfjället Non-developed plot of land 464 502
Västra Sälen 5:591 Malung-Sälen Högfjället Non-developed plot of land 501 502
Västra Sälen 5:592 Malung-Sälen Högfjället Non-developed plot of land 510 502
Västra Sälen 5:593 Malung-Sälen Högfjället Non-developed plot of land 508 502
Västra Sälen 5:594 Malung-Sälen Högfjället Non-developed plot of land 469 502
BUSINESS AREA PROPERTY DEVELOPMENT 49
Västra Sälen 5:595 Malung-Sälen Högfjället Non-developed plot of land 489 502
Västra Sälen 5:596 Malung-Sälen Högfjället Non-developed plot of land 493 773
Västra Sälen 5:597 Malung-Sälen Högfjället Non-developed plot of land 450 773
Västra Sälen 5:598 Malung-Sälen Högfjället Non-developed plot of land 431 773
Västra Sälen 5:599 Malung-Sälen Högfjället Non-developed plot of land 477 773
Västra Sälen 5:600 Malung-Sälen Högfjället Non-developed plot of land 516 773
Västra Sälen 5:601 Malung-Sälen Högfjället Non-developed plot of land 493 773
Västra Sälen 5:602 Malung-Sälen Högfjället Non-developed plot of land 522 773
Västra Sälen 5:603 Malung-Sälen Högfjället Non-developed plot of land 501 773
Västra Sälen 5:604 Malung-Sälen Högfjället Non-developed plot of land 479 773
Västra Sälen 5:605 Malung-Sälen Högfjället Non-developed plot of land 494 773
Västra Sälen 5:606 Malung-Sälen Högfjället Non-developed plot of land 494 773
Västra Sälen 5:607 Malung-Sälen Högfjället Non-developed plot of land 483 773
Västra Sälen 5:608 Malung-Sälen Högfjället Non-developed plot of land 481 773
Västra Sälen 5:609 Malung-Sälen Högfjället Non-developed plot of land 479 502
Västra Sälen 5:610 Malung-Sälen Högfjället Non-developed plot of land 418 502
Västra Sälen 5:611 Malung-Sälen Högfjället Non-developed plot of land 487 773
Västra Sälen 5:612 Malung-Sälen Högfjället Non-developed plot of land 484 773
Västra Sälen 5:613 Malung-Sälen Högfjället Non-developed plot of land 538 773
Västra Sälen 5:614 Malung-Sälen Högfjället Non-developed plot of land 518 773
Västra Sälen 5:615 Malung-Sälen Högfjället Non-developed plot of land 483 773
Västra Sälen 5:616 Malung-Sälen Högfjället Non-developed plot of land 432 773
Västra Sälen 5:617 Malung-Sälen Högfjället Non-developed plot of land 494 773
Västra Sälen 5:618 Malung-Sälen Högfjället Non-developed plot of land 467 773
Västra Sälen 5:619 Malung-Sälen Högfjället Non-developed plot of land 443 773
Västra Sälen 5:620 Malung-Sälen Högfjället Non-developed plot of land 539 502
Lien 1:10 Åre Åre Development land 1910/1975 181 181 922 809
Lien 2:33 Åre Åre Development land 21,428 0
Lien 2:37 Åre Åre Fjällbyn centrumhus 1983 2,818 2,818 3,630 23,533
Lien 2:38 Åre Åre Fjällbyn skidåkarhuset 1986 263 420 683 967 6,797
Lien 2:41 Åre Åre Fjällbyn 300-längan 1979 946 946 2,459 10,989
Hamre 1:101 Åre Duved Hotell Renen 1987 2,540 2,540 2,891 5,390
Åre-Svedje 1:96 Åre Åre Björnen Uttern 1982 360 554 914 4,997 6,371
Åre-Svedje 1:143 Åre Åre Björnen Björnen centrumhus 1988 1,014 1,014 7,723 8,090
Vemdalens Kyrkby 56:56 Härjedalen Vemdalen Sörgårdarna 2004-2007 5,036 5,036 30,588 21,372
Vemdalens Kyrkby 57:112 Härjedalen Vemdalen Solhyllan 2004 560 560 1,180 4,079
Vemdalens Kyrkby 57:113 Härjedalen Vemdalen Solhyllan 2004 560 560 1,538 4,025
Vemdalens Kyrkby 43:310 Härjedalen Björnrike Development land 45,460 0
Vemdalens Kyrkby 43:310 Härjedalen Björnrike Development land 6,948 90
Vemdalens Kyrkby 43:420 Härjedalen Björnrike Non-developed plot of land 1,336 1,040
Vemdalens Kyrkby 43:421 Härjedalen Björnrike Non-developed plot of land 1,061 1,560
Vemdalens Kyrkby 43:529 Härjedalen Björnrike Non-developed plot of land 1,505 460
Vemdalens Kyrkby 43:531 Härjedalen Björnrike Non-developed plot of land 1,636 469
Vemdalens Kyrkby 43:534 Härjedalen Björnrike Non-developed plot of land 1,438 455
Vemdalens Kyrkby 43:537 Härjedalen Björnrike Non-developed plot of land 1,386 452
Vemdalens Kyrkby 43:538 Härjedalen Björnrike Non-developed plot of land 1,535 414
Vemdalens Kyrkby 43:539 Härjedalen Björnrike Non-developed plot of land 1,318 447
Vemdalens Kyrkby 43:540 Härjedalen Björnrike Non-developed plot of land 1,244 442
29,404 6,863 36,267 5,644,485 354,441
Development land Malung-Sälen Lindvallen 2,686,795 4,622
Malung-Sälen Tandådalen 2,569,926 719
Åre Åre 22,350 809
Härjedalen Björnrike 52,408 90
5,331,479 6,240
Non-developed plot of land Malung-Sälen Lindvallen 46,965 24,132
Högfjället 15,490 22,026
Härjedalen Björnrike 12,459 5,739
74,914 51,897
LIST OF PROPERTIES FOR THE BUSINESS AREA PROPERTY NORWAY
Municipality Area NameYear of
constructionLiving area, square km
Store, square km
Total area, square km
Land, square km
square km
Total area, square
km Land, square km 2006 94 1,200 1,294 0
Trysil Skihytta Idrettshytta 1956 180 180 0
Trysil Fageråsen Aaasgard fjelltun 2007 1,240 1,240 1,640
Trysil Fageråsen Aaasgard fjelltun 0 5,600
Hemsedal Veslestölen Veslestölen 2001 760 760 2,000
Hemsedal Skisenter Alpinlodgen 2008 7,400 3,600 11,000 30,000
9,674 4,800 14,474 39,240
Development land Trysil Fageråsen Aaasgard fjelltun 5,600
Hemsedal Skisenter Alpinlodgen 20,000
25,600
CONT. LIST OF PROPERTIES FOR THE BUSINESS AREA PROPERTY SWEDEN
Property name Municipality Area NameYear of
constructionLiving area, square km
Stores, square km
Total area, square km
Land, square km
Taxable value, TSEK
50 ANNUAL REPORT
ANNUAL REPORT SKISTAR AB (PUBL) 1 SEPTEMBER 2012 – 31 AUGUST 2013
ANNUAL REPORT 51 ANNUAL REPORT
ADMINISTRATION REPORT52
ADMINISTRATION REPORT
OPERATING MARGIN, %
0
10
20
30
40
12/1311/1210/1109/1008/09
%
RETURN on capital employed, %
0
5
10
15
20
12/1311/1210/1109/1008/09
%
ADMINISTRATION REPORTThe Board of Directors and CEO of SkiStar AB (publ), Corporate Identity Number 556093-6949, hereby present the annual report and consolidated accounts for the financial year 1 September 2012 – 31 August 2013.
BUSINESS NAME AND REGISTERED OFFICEThe Company’s business name is SkiStar AB (publ). The Company has its registered offices in the Munici-pality of Malung-Sälen, in the County of Dalarna, with its head offices in Sälen. The postal address is 780 67 Sälen, Sweden.
FOCUS OF THE OPERATIONSSkiStar operates alpine ski operations in Sälen, Åre and Vemdalen in Sweden and Trysil and Hemsedal in Norway. The core business is alpine skiing, with a focus on the guests’ overall skiing experience. Opera-tions are divided into two Business Areas, Destina-tions and Property Development. The Business Area Destinations is divided into Sweden and Norway, and operations primarily include skiing, accommodation services, ski schools and ski rentals. The Business Area Property Development includes construction and development.
SkiStar’s vision is to create memorable winter experiences as the leading operator of European alpine skiing destinations.
OWNERSHIP STRUCTURESkiStar’s Class B shares have been listed on the Nasdaq OMX Mid Cap Stockholm since 1994. As per 31 August 2012, there were 31,162 (16,648) shareholders, according to Euroclear Sweden AB. The large increase is due to the fact that Investment AB Öresund has distributed 2,381,852 SkiStar shares to their shareholders. Major shareholders include Mats Paulsson, including company and family, who hold 21.46% of the capital and 44.64% of the votes; Erik Paulsson, including company and family, who hold 19.25% of the capital and 13.56% of the votes and Lima Jordägande Socknemän, which holds 4.69% of the capital and 3.30% of the votes. Significant changes in holdings among major shareholders dur-ing the financial year are the significantly decreased
holding of Investment AB Öresund who distributed SkiStar shares to their shareholders, as well as Lan-nebo Småbolag Fonder and Handelsbanken Fonder who also have decreased their holdings. JPM Chase NA, Mats Qviberg with family, The Fourth Swed-ish National Pension Fund and Banque Öhman S.A. have increased their holdings. New major sharehold-ers include AMF Aktiefond, which owns 300,000 Class B shares, and Catella Sverige Select, which owns 200,000 Class B shares.
THE SKISTAR SHAREThere are a total of 39,188,028 shares, of which 1,824,000 are Class A shares with ten votes per share and 37,364,028 are Class B shares with one vote per share. The highest noted share price during the finan-cial year was SEK 89, noted on 20 February 2013, and the lowest noted share price was SEK 72.50, noted on 24 June 2013. The share price at year-end, as at closing date, was SEK 81. At the Annual General Meeting on 8 December 2012, the Board of Directors was authorised to undertake decisions regarding the acquisition and transfer of SkiStar’s own shares. This authorisation applies until the next Annual General Meeting. The Board of Directors had not carried out any repurchases by the date of preparation of this annual report.
MARKET DEVELOPMENTDuring the 2012/13 season, SkiPass sales in Sweden increased by 12% to MSEK 1,267 (1,132), accord-ing to the Swedish Ski Lift Organisation (SLAO). The average price increase for SkiPasses in Sweden was 3.3%. In Norway, sales of SkiPasses increased by 14% to MNOK 980 (860) during the 2012/13 winter sea-son, according to the Norwegian Ski Lift Association. The average price increase of SkiPasses in Norway was 2.2%.
OPERATIONSThe Group’s net sales increased during the finan-cial year to MSEK 1,665 (1,552), income before tax increased to MSEK 160 (139) and income after tax decreased, due to a higher tax burden, to MSEK 137 (157). Earnings per share amounted to SEK 3.49 (3.99). After two years of decline, the last winter com-prised a turning point and saw a step towards, once
again, achieving the profitability goals. All holidays, Christmas/New Year, the winter sports break and Easter holiday showed an increased number of visitors and increased income. The periods between New Year and the winter sports break, and between the winter sports holiday and Easter holiday, have been weaker than in the previous year. One reason for this change in behaviour is the limited possibility to take leave from school.
LIQUIDITY, PROFITABILITY AND FINANCIAL POSITIONThe Group’s available cash and cash equivalents amounted to MSEK 219 (211), including unutilised credits of MSEK 193 (170). The average net interest-bearing liabilities decreased by MSEK 4 to MSEK 2,072, and the equity/assets ratio increased to 38% (36). Average interest expenses (net interest income/expenses/average net interest-bearing liabilities) amounted to 3.1% (2.9) during the financial year. Return on capital employed increased to 6% (5), return on equity decreased to 9% (11) and the operat-ing margin increased to 13% (12).
CASH FLOWCash flow from operating activities before changes in working capital totalled MSEK 363 (332) and cash flow after changes in working capital amounted to MSEK 399 (311). Cash flow for the period after investing activities was MSEK 255 (-11).
INVESTMENTS, DISPOSALS AND OTHER ACQUISITIONSInvestments during the period amounted to MSEK 183 gross and MSEK 144 net. Investments are divided between investments in the Business Area Destinations, which consist of investments in the Group’s skiing facilities (lifts, slopes, snow systems, etc.) and investments in the Business Area Property Development, which consist of investments in real estate companies, buildings and land for possible future development and sale. Net investments within the Business Area Destinations amounted to MSEK 106, and referred primarily to replacement invest-ments, expansion of the Group’s snowmaking systems and the commencement of investments prior to the 2013/14 winter season. Net investments in the Busi-
ADMINISTRATION REPORT 53
EQUITY/ASSETS RATIO, %
%
20
30
40
50
12/1311/1210/1109/1008/09
RETURN on equity, %
0
10
20
30
12/1311/1210/1109/1008/09
%
ness Area Property Development amounted to MSEK 38 and related to the replacement investments as well as the acquisition of shares in associated companies.
FINANCIAL RISKS AND OPPORTUNITIESForeign exchange riskThe fluctuation of local currencies against foreign currencies impacts travel habits and may, therefore, impact the number of guests at SkiStar’s alpine des-tinations. The Group is also affected by the relation-ship between the Swedish and Norwegian currencies. SkiStar does not hedge its Norwegian operations. For example, purchases of lifts and snow grooming equip-ment are made from abroad and the prices for these are affected by changes in exchange rates. SkiStar offers Danish guests the option of paying in their domestic currency (DKK) and the net flow of DKK is partially hedged. For further information, see Note 32.
Investments and interest ratesThe Alpine ski industry demands major capital investments in order to maintain and increase com-petitiveness. SkiStar has a strong cash flow, enabling a high level of internally financed investments. Should interest rates increase, the cash flow can be used to more quickly amortise loans and thereby decrease the financial burden on the Company. At present, external borrowing only takes place in local currencies, SEK and NOK. As of 31 August 2013, net interest-bearing liabilities amounted to MSEK 1,986, of which MSEK 800 has been hedged by interest derivatives with dura-tions of 5 and 10 years. For further information, see Note 32.
PERSONNEL The average number of employees decreased by 34 to 1,085. Each destination has an organisational struc-ture for addressing work environment and gender equality issues. These groups are coordinated centrally and have common governance documents, such as a gender equality plan and working environment policy. Costs for skills development during the financial year amounted to MSEK 3 (3) and refer primarily to inter-nal training. Personnel turnover among permanent employees shows that 41 individuals commenced, and 31 terminated, their employment with SkiStar (22 and 38, respectively). The proposed guidelines of the Board of Directors regarding remuneration to senior
management, subject to the resolution of the Annual General Meeting in December 2013, will correspond to the guidelines described in Note 8 and which remain applicable.
ENVIRONMENTAL IMPACTSkiStar’s operations have a certain environmental impact. The Company works actively to minimise this impact. A joint environmental management sys-tem and a basic policy form the foundation of the environ mental work. The environmental policy entails that, in striving to offer its guests a memorable winter experience, SkiStar takes the environment into con-sideration in all of its operations. Through systematic improvement activities, guests will experience SkiStar as the environmentally sound choice. SkiStar moni-tors carbon dioxide (CO2) emissions produced by its operations and annually measures the amount of CO2 emitted by its operations in relation to sales. In finan-cial year 2012/13, SkiStar emitted 5.6 tonnes of CO2/MSEK (5.2), of which the increase is primarily due to an increased geographical area used for skiing. On 22 August 2006, the energy management system for snowmaking at SkiStar’s Swedish destinations, which SkiStar introduced during 2005/06, was approved by Lloyd’s Register Quality Assurance, in accordance with the standard for energy management systems, SS 62 77 50.
RISK AND FACTORS OF UNCERTAINTYThe risks and factors of uncertainty described below affect both the Parent Company and the Group. The number of guests at SkiStar’s destinations is impacted by weather and snow conditions. A late winter, with poor access to cold weather and natural snow leading up to the Christmas week, can result in lower demand. A lower demand can also arise in winters with long periods of cold weather and good snow conditions in the more densely populated parts of southern Scandinavia, as snow, cold weather and skiing are available closer to home. SkiStar meets these risks by continuously developing its snowmaking systems, in order to guarantee skiing, and through strategic sales, ensure that a considerable portion of the avail-able accommodation capacity is booked up prior to the Christmas week, which marks the start of the high season.
Fluctuations in the values of domestic currencies
in relation to other currencies influence people’s travel patterns and can, thereby, affect the number of guests at SkiStar’s destinations. The Group is also affected by the relationship between the Swedish krona and Norwegian krone. Furthermore, SkiStar’s income is impacted by changes in interest rates in the Nor-dic countries, as the general interest rate level affects disposable income and consumption patterns.
The Government’s budget proposal states that the regulations concerning tax exemption on income from properties incurring a special tax assessment are to be revoked. SkiStar has applied these regulations in its Swedish operations. This change implies that, start-ing in financial year 2014/15, the entire profit from SkiStar’s Swedish operations will be subject to tax. Meanwhile, SkiStar AB has approximately MSEK 800 in unutilised losses carried forward, implying that the Company will not have to pay any tax for a number of years.
SkiStar has received a joint summons to appear in court together with two former Board members of Spray AB, related to the sale of a company which took place before SkiStar acquired Spray AB in 2003. The claimant, CA Fastigheter, has called for the transaction to be reversed in an amount equivalent to the purchase consideration of MSEK 17, plus interest. SkiStar has not reported a provision for any expenses in relation to this summons, as it is not considered likely that CA Fastigheter’s claim will be upheld.
PARENT COMPANYThe Parent Company’s net sales amounted to MSEK 1,148 (1,076), and income before tax to MSEK 147 (440). Income was positively impacted during the fourth quarter by the reversal of accelerated depre-ciation, amounting to MSEK 301. The majority of the Swedish operations are conducted in the Parent Com-pany. However, as per the financial year 2008/09, prop-erty operations have been conducted in the wholly- owned subsidiary, Fjällinvest AB.
CORPORATE GOVERNANCEThe corporate governance information is presented in a separate Corporate Governance Report.
ANDERMATT/SEDRUNThe management agreement with Andermatt expired in September 2013. Renegotiation of a new agree-
ADMINISTRATION REPORT54
INCOME BEFORE TAXES, by period, TSEK
2012/13 2011/12
September-November -268,594 -261,598
December-February 415,675 377,983
March-May 185,793 183,033,
June-August -172,887 -160,795
APPROPRIATION OF PROFITS
Proposed allocation of the Company’s profits. The Board of Directors proposes
that the profits available, SEK 1,019,448,277, be appropriated as follows:
Dividend: 39,188,028 shares 2.50 SEK 97,970,070
To be carried forward 921,478,207
(of which is share premium 4,242,533)
Total 1,019,448,277
TURNOVER BREAKDOWN, %
Other 10%
Building Services 7%
Sporting Goods Outlets 4%
Ski School/Activities 3%
Ski Rental 8%
Accomodations 12%
SkiPass 56%
DEFINITIONS
EARNINGS PER SHARENet income for the year attributable to the shareholdersin the Parent Company divided by the average number ofshares.
EARNINGS PER SHARE AFTER FULL CONVERSIONNet income for the year attributable to the shareholders in the Parent Company, adjusted for interest expenses aftertaxes accrued on convertible debentures, divided by the number of shares after full conversion of subscribed con-vertible debentures.
CASH FLOWCash flow before changes in working capital.
CASH FLOW PER SHARECash flow divided by the average number of shares.
P/E RATIOShare price as per the balance sheet date divided by ear-nings per share after tax.
SHARE PRICE/CASH FLOWShare price at year-end divided by cash flow per share.
SHARE PRICE/EQUITYShare price at year-end divided by equity per share.
YIELDDividends divided by share price.
EQUITY/ASSETS RATIOEquity as a percentage of balance sheet total.
DEBT/EQUITY RATIOInterest-bearing liabilities as a percentage of equity.
INTEREST COVERAGE RATIOIncome after net financial income plus financial expenses asa percentage of financial expenses.
RETURN ON CAPITAL EMPLOYEDIncome after net financial income plus financial expenses as a percentage of average capital employed. Capital employed is defined as the value of assets deducted by non-interest bearing liabilities.
RETURN ON EQUITYIncome after tax as a percentage of average equity.
RETURN ON TOTAL ASSETSIncome after net financial income plus financial expenses as a percentage of average balance sheet total.
GROSS MARGINOperating profit/loss before depreciation/amortisation as a percentage of net sales.
OPERATING MARGINOperating profit/loss after depreciation/ amortisation as a percentage of net sales.
NET MARGINIncome before tax as a percentage of net sales.
CURRENT RATIOCurrent assets including granted but unutilised bank over-draft facilities as a percentage of current liabilities.
LIQUID RATIOCurrent assets including granted but unutilised bank over-draft facilities, with deduction of inventories, as a percen-tage of current liabilities.
SLAO Svenska Liftanläggningars Organisation. (The Swedish liftorganisation).
ALF Alpinanleggenes Landsforening. (The Norwegian liftorganisation).
SKIPASS SkiPass for access to the slopes. SKI DAYOne day of skiing with a SkiPass.
OBJECT DAY One booked day in a cabin, apartment or hotel.
ment, with increased focus on support within market-ing, sales and IT, is ongoing.
PRIOR TO 2013/14The unusually beautiful weather during the summer has led to a lower, short-term bookings entrance during the summer, but since mid-September, book-ings have increased again. Several external factors are positive for the coming season; good conditions at all destinations during the previous winter, the pleasant summer weather which results in increased priority for ski trips, a more positive economic climate and slightly weaker exchange rates (NOK and SEK against DKK and Euro). The books are 1% better compared with the same period last year. The calendar
for Christmas and New Year is advantageous as there is a maximum number of days off from work. Easter arrives late in April, implying a good potential as there is a long top-season, but a late Easter also means that there will only be one week of Easter, since almost all schools have Easter break during the first week of Easter. Investments in ski resorts, which are estimated at MSEK 142, consist primarily of replacement invest-ments including a warming hut in Vemdalen, a rein-forced snowmaking system and a new surface lift in Sälen and capital investments in a company building three new chairlifts in Åre.
Investment in Property Development is estimated at MSEK 38 and includes replacement investments, the acquisition of shares in associated companies, land
acquisition in Hemsedal and the renovation of apart-ments for sale. From this autumn, there are just over 90 apartments for sale in Sälen, Vemdalen and Åre. In addition to this, there are another 80 unsold lots.The Government’s budget proposal states that the regulations concerning tax exemption on property income from properties incurring special tax assess-ment are to be revoked. SkiStar has applied these regulations in its Swedish operations. This change implies that, starting with the financial year 2014/15, the entire profit from SkiStar’s Swedish operations will be subject to tax. Meanwhile, SkiStar AB has approxi-mately MSEK 800 in unutilised losses brought for-ward, implying that the Company will not have to pay any tax for a number of years.
REVIEW OF THE PAST FIVE YEARS 55
REVIEW OF THE PAST FIVE YEARS
REVIEW OF THE PAST FIVE YEARS 2012/13 2011/12 2010/11 2009/10 2008/09
Net sales and profit/loss Net sales, MSEK 1,665 1,552 1,574 1,688 1,635
Operating income, MSEK 1,706 1,573 1,598 1,728 1,642
Income before depreciation, MSEK 438 412 454 363 370
Result before taxes, MSEK 160 139 189 347 302
Profit after taxes, MSEK 137 157 181 334 273
Cash flow Cash flow before change in working capital, MSEK 363 332 370 534 502
Cash flow after change in working capital, MSEK 399 311 365 490 493
Cash flow after investing activities, MSEK 255 -11 6 247 157
Profitability Return on capital employed, % 6 5 7 11 11
Return on equity, % 9 11 12 23 21
Return on total assets, % 6 5 6 10 10
Gross margin, % 26 27 29 34 36
Operating margin, % 13 12 15 21 22
Net margin, % 10 9 12 20 18
Investments Gross investments, MSEK 183 360 386 331 411
Net investments, MSEK 144 322 359 243 343
Financial position Balance sheet total, MSEK 3,894 4,002 3,892 3,726 3,669
Equity, MSEK 1,482 1,457 1,466 1,497 1,372
Equity/assets ratio, % 38 36 38 40 37
Debt/equity ratio 1.4 1.6 1.5 1.3 1.5
Interest coverage ratio 3.3 3.0 4.7 11.2 5.1
Liquidity Current ratio, % 50 48 131 205 182
Liquid ratio, % 43 41 114 185 163
Personnel Average number of employees 1,085 1,051 1,099 1,118 1,120
Net sales per employee, TSEK 1,535 1,477 1,402 1,510 1,460
STATEMENT OF COMPREHENSIVE INCOME FOR THE GROUP56
STATEMENT OF COMPREHENSIVE INCOME FOR THE GROUP
TSEK NOTE2012-09-01
-2013-08-312011-09-01
-2012-08-31
Net sales 2 1,665,285 1,551,861
Other operating income 4 40,955 21,397
Total operating income 3 1,706,240 1,573,258
Operating expenses Goods for resale -137,298 -139,023
Other external expenses 6, 7 -601,808 -559,496
Personnel costs 5, 8 -504,127 -454,672
Shares in associated companies’ income 16 -25,274 -8,211
Depreciation of tangible and amortisation of intangible fixed assets 9 -218,611 -222,485
Operating profit/loss 219,122 189,371
Income from financial items Profit/loss from securities accounted for as fixed assets 33 227 2,933
Interest income and similar profit/loss items 34 10,444 16,369
Interest expenses and similar profit/loss items 35 -69,806 -70,050
Income before tax 159,987 138,623
Tax 11 -23,380 17,925
Net income for the year 136,607 156,548
OTHER COMPREHENSIVE INCOME
Change in fair value of cash flow hedges for the year 13,830 -22,557
Deferred tax on cash flow hedges -3,647 6,086
Exchange rate differences for the year upon translation of foreign operations -24,859 -12,863
Other comprehensive income for the year -14,676 -29,334
Total comprehensive income for the year 121,931 127,214
Net income for the year attributable to: Shareholders in the Parent Company 136,902 156,548
Non-controlling interest -295
Net income for the year 136,607 156,548
Total comprehensive income for the year attributable to: Shareholders in the Parent Company 122,226 127,214
Non-controlling interest -295 -
Total comprehensive income for the year 121,931 127,214
Earnings per share Earnings per share before dilution, SEK 12 3:49 3:99
Earnings per share after dilution, SEK 12 3:49 3:99
Average number of shares before dilution 12 39,188,028 39,188,028
Number of shares after dilution 12 39,188,028 39,438,028
QUARTERLY VALUES
2012/13
Q1 Q2 Q3 Q4 Full year
Operating revenues, TSEK 60,704 967,859 616,139 61,538 1,706,240
Operating profit/loss, TSEK -252,816 430,241 199,026 -157,329 219,122
Operating margin, % neg 45 32 neg 13
2011/12
Q1 Q2 Q3 Q4 Full year
Operating revenues, TSEK 44,314 895,713 588,280 44,951 1,573,258
Operating profit/loss, TSEK -247,328 391,030 194,544 -148,875 189,371
Operating margin, % neg 44 34 neg 12
DEPRECIATION of tangible and amortisation of intangible fixed assets
150
200
250
12/1311/1210/1109/1008/09
MSEK
STATEMENT OF FINANCIAL POSITION FOR THE GROUP 57
STATEMENT OF FINANCIAL POSITION FOR THE GROUP
ASSETS, TSEK NOTE 2013-08-31 2012-08-31
Fixed assets Intangible fixed assets 13 202,103 211,650
Tangible fixed assets 14 2,931,034 3,016,794
Deferred tax assets 11 22,015 33,793
Participations in associated companies 16 244,383 275,780
Other participations and long-term holdings 17 84,636 90,839
Other non-current receivables 18 138,870 97,555
Total fixed assets 3,623,041 3,726,411
Current assets
-Inventories Goods for resale 61,550 66,238
61,550 66,238
-Current receivables Accounts receivable - trade 19 30,682 34,822
Tax assets 29,810 33,369
Other current receivables 20 79,246 70,133
Prepaid expenses and accrued income 21 43,336 29,751
183,074 168,075
Cash and cash equivalents Cash and bank balances 26,277 41,131
Total current assets 270,901 275,444
TOTAL ASSETS 3,893,942 4,001,855
EQUITY AND LIABILITIES
Equity Share capital 22 19,594 19,594
Other contributed capital 397,573 397,573
Reserves -33,711 -19,101
Profit brought forward, including net profit/loss for the year 1,097,394 1,058,462
Equity attributable to shareholders in the Parent Company 1,480,850 1,456,528
Non-controlling interests 1,291 -
Total equity 1,482,141 1,456,528
Non-current liabilities
-Non-current, interest-bearing liabilities Liabilities with credit institutions 25 1,435,635 1,571,611
Pension provisions 26 5,607 2,932
-Non-current, non-interest-bearing liabilities Other provisions 28 708 554
Other financial liabilities 32 9,843 22,557
Other non-interest-bearing liabilities 5,053 -
Deferred tax liabilities 11 26,039 27,616
Total non-current liabilities 1,482,885 1,625,270
-Current liabilities Liabilities with credit institutions 25 666,171 673,685
Subordinated debenture 24, 25 - 29,997
Accounts payable - trade 36 64,974 43,315
Tax liabilities 18,908 13,076
Other current liabilities 79,335 71,503
Accrued expenses and deferred income 29 99,528 88,481
Total current liabilities 928,916 920,057
Total liabilities 2,411,801 2,545,327
TOTAL EQUITY AND LIABILITIES 3,893,942 4,001,855
PLEDGED ASSETS AND CONTINGENT LIABILITIES
Pledged assets 30 1,521,331 1,653,549
Contingent liabilities 30 425,277 384,747
CHANGE IN EQUITY FOR THE GROUP58
CHANGE IN EQUITY FOR THE GROUP
Equity attributable to shareholders in the Parent Company
GROUP, TSEK Share capitalOther contribu-
ted capital Reserves Hedging reserves
Profit brought forward and net income for the year Total
Non-controlling interest Total equity
Opening equity, 1 Sept 2011 19,594 397,573 10,233 1,039,072 1,466,472 - 1,466,472
Net profit/loss for the year 156,548 156,548 156,548
Other comprehensive income for the year* -12,863 -16,471 -29,334 -29,334
Comprehensive income for the year - - -12,863 -16,471 156,548 127,214 - 127,214
Dividend -137,158 -137,158 -137,158
Closing equity 31 Aug 2012 19,594 397,573 -2,630 -16,471 1,058,462 1,456,528 - 1,456,528
Opening equity 1 Sept 2012 19,594 397,573 -2,630 -16,471 1,058,462 1,456,528 - 1,456,528
Net profit/loss for the year 136,902 136,902 -295 136,607
Other comprehensive income for the year* -24,793 10,183 -14,610 -66 -14,676
Comprehensive income for the year - - -24,793 10,183 136,902 122,292 -361 121,931
Takeovers without controlling influence 1652 1,652
Dividend -97,970 -97,970 -97,970
Closing equity 2013-08-31 19,594 397,573 -27,423 -6,288 1,097,394 1,480,850 1,291 1,482,141
* Items which can be reallocated to the profit and loss
CASH FLOW STATEMENT FOR THE GROUP 59
CASH FLOW STATEMENT FOR THE GROUP
TSEK NOTE2012-09-01
-2013-08-312011-09-01
-2012-08-31
Operating activities Income after financial items 159,987 138,623
Adjustments for non-cash items, etc. 31 206,752 222,559
366,739 361,182
Tax paid -3,884 -29,548
Cash flow from operating activities before changes in working capital 362,855 331,634
Cash flow from changes in working capital Increase (-) / Decrease (+) in inventories 7,866 -98
Increase (-) / Decrease (+) in operating receivables -22,886 -3,297
Increase (+) / Decrease (-) in operating liabilities 51,230 -16,961
Cash flow from operating activities 399,065 311,278
Investing activities Acquisition of subsidiaries, net of cash 31 294 -
Sale of subsidiaries, net of cash 31 - -
Acquisition of intangible fixed assets -9,090 -18,507
Acquisition of tangible fixed assets -128,785 -203,572
Acquisition of financial assets -45,020 -136,339
Sale of tangible fixed assets 38,843 13,589
Sale / decrease of financial assets - 22,634
Cash flow from investing activities -143,758 -322,195
Financing activities Loans raised - 150,477
Repayment of debt -169,588 -
Dividends paid -97,970 -137,158
Cash flow from financing activities -267,558 13,319
Cash flow for the year -12,251 2,402
Cash and cash equivalents at the beginning of the year 41,131 39,819
Exchange rate differences in cash and cash equivalents -2,603 -1,090
Cash and cash equivalents at year-end 31 26,277 41,131
CASH FLOW
from operating activities before changes in working capital, MSEK
0
100
200
300
400
500
600
12/1311/1210/1109/1008/09
MSEK
CASH FLOW
after investing activities, MSEK
-250
-150
-50
50
150
250
12/1311/1210/1109/1008/09
MSEK
PARENT COMPANY INCOME STATEMENT60
PARENT COMPANY INCOME STATEMENT
TSEK NOTE2012-09-01
-2013-08-312011-09-01
-2012-08-31
Net sales 2 1,148,299 1,076,038
Other operating income 4 24,504 5,990
Total operating income 2,3 1,172,803 1,082,028
Operating expenses Goods for resale -83,256 -77,134
Other external expenses 6, 7 -479,533 -450,735
Personnel costs 5, 8 -347,382 -304,628
Depreciation of tangible and amortisation of intangible fixed assets 9 -124,690 -126,818
Operating profit/loss 137,942 122,713
Income from financial items Income from securities accounted for as fixed assets 33 384 -93
Income from participations in Group companies 10 37,215 36,365
Interest income and similar profit/loss items, external 34 5,349 10,602
Interest income, Group companies 34 2,502 11,241
Interest expenses and similar profit/loss items, external 35 -35,410 -40,278
Interest expenses, Group companies 35 -660 -831
Income after financial items 147,322 139,719
Appropriations 23 - 300,776
Income before tax 147,322 440,495
Tax 11 12,171 -45,089
Net income for the year 159,493 395,406
OTHER COMPREHENSIVE INCOME
Change in fair value of cash flow hedges for the year 11,948 -10,944
Deferred tax on cash flow hedges -3,097 2,878
Other comprehensive income for the year 8,851 -8,066
Total comprehensive income for the year 168,344 387,340
PARENT COMPANY BALANCE SHEET 61
PARENT COMPANY BALANCE SHEET
ASSETS , TSEK NOTE 2013-08-31 2012-08-31
Fixed assets Intangible fixed assets 13 34,501 32,735
Tangible fixed assets 14 1,558,932 1,604,780
Financial fixed assets Participations in Group companies 15 249,635 249,635
Participations in associated companies 16 8,668 7,826
Other participations and investments held as fixed assets 17 12,971 10,513
Other non-current receivables 18 88,059 98,595
Receivables from Group companies 27 331,225 481,520
TOTAL FIXED ASSETS 2,283,991 2,485,604
Current assets-Inventories Goods for resale 46,872 50,517
46,872 50,517
- Current receivables Accounts receivable – trade 19 29,638 19,691
Tax assets 22,167 22,143
Other current receivables 20 40,586 43,377
Prepaid expenses and accrued income 21 40,555 18,967
132,946 104,178
- Cash and cash equivalents Cash and bank balances 2,859 3,409
TOTAL CURRENT ASSETS 182,677 158,104
TOTAL ASSETS 2,466,668 2,643,708
EQUITY AND LIABILITIES
Equity 22- Restricted equity Share capital 19,594 19,594
Statutory reserve 25,750 25,750
45,344 45,344
- Non-restricted equity Share premium reserve 4,242 4,242
Profit brought forward 855,713 549,426
Net income for the year 159,493 395,406
1,019,448 949,074
Total equity 1,064,792 994,418
Untaxed reserves 23 - -
Non-current liabilities
- Non-current, interest-bearing liabilities Liabilities to Group companies 27 43,734 24,176
Liabilities to credit institutions 25 730,502 1,125,597
-Provisions Provisions for pensions 26 3,492 398
Other provisions 28 708 554
- Non-current, non-interest-bearing liabilities Other non-interest-bearing liabilities 112 10,944
Deferred tax liabilities 11 125,978 146,334
Total non-current liabilities 904,305 1,308,003
- Current liabilities Liabilities to credit institutions 24, 25 340,000 144,997
Accounts payable – trade 36 44,646 28,832
Other current liabilities 54,632 114,755
Accrued expenses and deferred income 29 58,293 52,703
Total current liabilities 497,571 341,287
Total liabilities 1,401,876 1,649,290
TOTAL EQUITY AND LIABILITIES 2,466,668 2,643,708
PLEDGED ASSETS AND CONTINGENT LIABILITIES
Pledged assets 30 537,346 650,167
Contingent liabilities 30 779,137 911,089
CHANGE IN EQUITY FOR THE PARENT COMPANY62
CHANGE IN EQUITY FOR THE PARENT COMPANY
Restricted equity Non-restricted equity
PARENT COMPANY, TSEK Share capitalStatutory Reserve
Share premium Reserve
Hedging reserves
Profit brought forward
Net income for the year Total equity
Opening equity, 1 Sept 2011 19,594 25,750 4,242 - 694,650 - 744,236
Net income for the year 395,406 395,406
Other comprehensive income for the year -8,066 -8,066
Comprehensive income for the year - - - -8,066 - 395,406 387,340
Dividends -137,158 -137,158
Closing equity, 31 Aug 2012 19,594 25,750 4,242 -8,066 557,492 395,406 994,418
Opening equity, 1 Sept 2012 19,594 25,750 4,242 -8,066 952,898 - 994,418
Net income for the year 159,493 159,493
Other comprehensive income for the year 8,851 8,851
Comprehensive income for the year - - - 8,851 - 159,493 168,344
Dividends -97,970 -97,970
Closing equity, 31 Aug 2013 19,594 25,750 4,242 785 854,928 159,493 1,064,792
CASH FLOW STATEMENT FOR THE PARENT COMPANY 63
CASH FLOW STATEMENT FOR THE PARENT COMPANY
TSEK NOTE2012-09-01
-2013-08-312011-09-01
-2012-08-31
Operating activities Income after financial items 147,322 139,719
Adjustments for non-cash items, etc. 31 105,953 126,605
253,275 266,324
Tax paid -217 -265
Cash flow from operating activities before changes in working capital 253,058 266,059
Cash flow from changes in working capital Increase (-) / Decrease (+) in inventories 3,646 -2,447
Increase (-) / Decrease (+) in operating receivables 106,585 -4,147
Increase (+) / Decrease (-) in operating liabilities -42,061 61,983
Cash flow from operating activities 321,228 321,448
Investing activities Acquisition of intangible fixed assets -13,212 -18,518
Acquisition of tangible fixed assets -76,740 -115,086
Sale of tangible fixed assets 31,941 -
Investments in financial assets -8,786 -62,366
Sale / decrease of financial assets - 300
Cash flow from investing activities -66,797 -195,670
Financing activities Loans raised - 115,000
Repayment of debt -157,011 -103,520
Dividends paid -97,970 -137,158
Cash flow from financing activities -254,981 -125,678
Cash flow for the year -550 100
Cash and cash equivalents at the beginning of the year 3,409 3,309
Cash and cash equivalents at year-end 31 2,859 3,409
NOTES64
NOTES TO THE FINANCIAL STATEMENTS
COMPLIANCE WITH STANDARDS AND STATUTORY REQUIREMENTS The consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Account-ing Standards Board (IASB), as well as in accordance with the interpretations of the International Finan-cial Reporting Interpretations Committee (IFRIC) as endorsed by the EU. The Swedish Financial Reporting Board’s standard RFR 1 has also been applied.
The Parent Company has applied the same accounting principles as the Group, except for the cases specified below in the section “Parent Company Accounting Principles”.
CONDITIONS FOR THE PREPARATION OF THE PARENT COMPANY’S AND THE GROUP’S FINANCIAL STATEMENTSThe Parent Company’s functional currency, as well as the reporting currency for the Parent Company and the Group, is the Swedish krona (SEK). This implies that the financial statements are presented in SEK. All amounts, unless stated otherwise, are rounded off to the nearest thousand. Assets and liabilities are report-ed at amortised acquisition cost and, where appropri-ate, with a deduction for depreciation/amortisation, unless otherwise indicated.
Preparing the financial statements in accordance with IFRS requires that the Group’s management undertakes assessments and estimations, and makes assumptions influences the application of the account-ing principles and the carrying amounts of assets, liabilities, income and expenses. The estimations and assumptions are based on historical experience and a number of other factors which, under the prevailing circumstances, are deemed reasonable. The results of these estimations and assumptions are subsequently used to assess the carrying amounts of assets and lia-bilities, which are otherwise not clearly apparent from other sources. The actual outcome can deviate from these estimations and assessments. Estimations and assumptions are reviewed regularly. Changes in esti-mations are reported in the period in which the change is made, if the change only affects that specific period, or they are reported in the period in which the change is made and in future periods if the change affects both the current and future periods.
The accounting principles described for the Group have been applied consistently for all periods present-ed in the Group’s financial statements, unless stated otherwise below. The Group’s accounting principles have been applied consistently in the reporting and consolidation of the Parent Company, subsidiaries and associated companies.
CHANGES IN ACCOUNTING PRINCIPLESChanges in accounting principles resulting from new, or amended, IFRSThe changes in accounting principles applied by the Group from 1 September 2012 are described below. Other amended and new IFRS effective from 1 Sep-tember 2012 have had no significant effect on the Group’s accounting.
Amendment to IAS 1, Presentation of Financial Statements (Presentation of other comprehensive income). This amendment applies to the manner in which items within Other comprehensive income are to be presented. The items are to be divided into two groups; items which will be reclassified
to net income and items which will not be reclassi-fied. Items which will be reclassified are translation differences. Items which will not be reclassified are actuarial gains and losses. The amendment is to be applied for financial years beginning 1 July 2012 or later, and shall be applied retroactively.
Amendment to IAS 24, Related Party Disclosures, primarily regarding disclosures for government related companies, but also with regard to the defi-nition of “related party”.
Amendments to IFRIC 14 IAS 19 – The Limit on a Defined Benefit Assets, Minimum Funding Requirements and their Interaction with regard to advance payments to cover minimum funding requirements. Other forthcoming amended and new IFRS are not expected to have any impact on the Company’s accounts.
New IFRS and interpretations to be applied during upcoming periodsIFRS 9, Financial Instruments, is intended to replace IAS 39, Financial Instruments: Recognition and Meas-urement, with a proposed effective date from 2015 at latest. The IASB has published the first two of, at least, three parts which, together, will comprise IFRS 9. The first part concerns the classification and measurement of financial assets. The categories of financial assets in IAS 39 are replaced by two categories, in which meas-urement is made at fair value or amortised acquisition cost. Amortised acquisition cost is used for instru-ments held in a business model having the objective of receiving the contractual cash flows, which will form payments of principal and interest on the principal, on specified dates. Other financial assets are report-ed at fair value, and the possibility to apply the “fair value option”, as in IAS 39, remains. Changes in fair value are to be reported in income, with the excep-tion of changes in the value of equity instruments not held for trading and for which the initial designation is made to report changes in value in Other compre-hensive income. Changes in the value of derivatives in hedge accounting are not affected by this aspect of IFRS 9, but are to be reported in accordance with IAS 39 until further notice. In October 2010, IASB also published those sections of IFRS 9 concerning the recognition and measurement of financial liabilities. The majority of sections are similar to the previous requirements of IAS 39, with the exception of finan-cial liabilities voluntarily designated as measured at fair value, in accordance with the so-called “Fair value option”. Changes in the value of these liabilities are to be divided between changes which are attributable to the holder’s credit rating and changes attributable to changes in the reference interest rate. The application of IFRS 9 is currently estimated to have no material impact on the accounts.
The effects of the following future changes in account-ing principles will affect the Group’s statement of financial position and equity ratio. An analysis of the classification of the associated companies is ongoing, which is why an amount cannot be estimated with rea-sonable accuracy at this date:
IFRS 10 Consolidated Financial Statements. New standard for consolidated financial statements. The standard will become effective in 2014.
IFRS 11 Joint Arrangements. New standard for the accounting of joint ventures and joint operations. The standard will become effective in 2014.
It is not currently possible to assess, with a reasonable degree of accuracy, the effects of the following future changes in accounting principles:
IFRS 12 Disclosure of Interests in Other Entities. New standard for the disclosure of all types of investments in other companies. The standard will become effective in 2014.
Amended IAS 27 Separate Financial Statements. The amended standard includes requirements for legal entities only. In principle, there are no changes regarding the accounting and disclosures for separate financial statements. Accounting for associated companies and joint ventures has been included in IAS 27. The amendments are likely to become effective in 2014.
Amendment to IAS 28 Investments in Associates and Joint Ventures. The amended standard cor-responds, in principle, to the previous IAS 28. The amendment concerns the manner in which accounting is to be prepared when there are chang-es in investments in associates in which significant or joint controlling influence ceases, or not. The amendment is to be applied for financial years beginning on 1 January 2013 or later.
IFRS 13 Fair Value Measurement. A new, uniform standard for the measurement of fair value and improved disclosure. The standard is to be applied for financial years beginning on 1 January 2013 or later.
Amendment to IAS 19 Employee Benefits. The amendment implies that the use of the so-called “corridor method” is eliminated. Actuarial gains and losses are to be reported in Other comprehen-sive income. Returns which are calculated on plan assets shall be based on the discount rate applied in the calculation of pension commitments. The dif-ference between the actual and calculated return on plan assets is to be reported in Other compre-hensive income. The amendment is to be applied for financial years beginning 1 January 2013 or later, and is to be applied retroactively.
Other forthcoming, amended and new IFRS are not expected to have any impact on the Company’s accounts.
SEGMENT REPORTINGAn operating segment is a part of the Group that conducts business from which it can generate income and incur expenses for which independent financial information is available. The operating segments’ results are followed up by the Company’s chief oper-ating decision-makers in order to evaluate financial performance and to be able to allocate resources to operating segments. The performance measure that is monitored is the operating segment’s operating profit. See Note 3 for a further description of the division and presentation of operating segments. Segment informa-tion is provided, in accordance with IFRS 8, for the Group only.
CLASSIFICATIONS, ETC.Non-current assets and non-current liabilities in the Par-ent Company and the Group are comprised, in all mate-rial respects, of only the amounts expected to be recov-ered, or paid, later than twelve months from balance sheet date. Current assets and current liabilities in the Parent Company and the Group comprise, in all materi-al respects, only those amounts expected to be recovered, or paid, within twelve months from balance sheet date.
NOTE 1 ACCOUNTING PRINCIPLES
NOTES 65
CONSOLIDATION PRINCIPLESSubsidiaries Subsidiaries are companies that are controlled by SkiStar AB. Control implies having the right, directly or indirectly, to form a company’s financial and oper-ating strategies with the purpose of gaining economic benefit. In the assessment to determine any control, potential shares with voting rights which can be uti-lised, or converted, immediately, are taken into con-sideration.
Acquisitions 1 September 2009 or laterSubsidiaries are reported according to the acquisition method in which the acquisition of a subsidiary is con-sidered to comprise a transaction through which the Group indirectly acquires the subsidiary’s assets and assumes its liabilities. The fair value of acquired iden-tifiable assets and assumed liabilities on acquisition date, as well as any non-controlling interest, is estab-lished in the acquisition analysis. Transaction costs, with the exception of transaction costs attributable to the issue of equity or debt instruments, are reported directly in net income.
For business combinations in which transferred consideration, any non-controlling interest and fair value of previously owned shares (for stepwise acqui-sitions) exceed the fair value of the acquired assets and assumed liabilities which are reported separately, the difference is reported as goodwill. When the difference is negative, so called acquisition at low consideration, it is reported directly in net income.
Transferred compensation in connection with the acquisition does not include payments relating to the settlement of previous business relationships. This type of settlement is reported in net income.
Conditional considerations are reported at fair value on acquisition date. In cases in which the con-ditional consideration is classified as an equity instru-ment, no revaluation is made and settlement is carried out within equity. Other conditional considerations are revalued at each reporting date and changes are reported in net income.
In the event that the acquisition does not refer to 100% of the subsidiary, non-controlling interest arises. There are two alternatives for reporting non-controlling interests. These two alternatives are to report the proportional share of net assets of the non-controlling interest, or, alternatively, that the non-con-trolling interest is reported at fair value, which implies that the non-controlling interest incurs a portion of the goodwill. The choice between the different alter-natives for accounting non-controlling interest can be made on an acquisition-by-acquisition basis.
For acquisitions which are carried out step-wise, goodwill is established on the date on which control is acquired. Earlier holdings are measured at fair value and any change is reported in net income.
Disposals leading to the loss of control, but in which the holding is retained, are measured at fair value and the change in value is reported in net income.
Acquisitions undertaken between 1 September 2004 and 31 August 2009Acquisitions made between 1 September 2004 and 31 August 2009, in which the acquisition cost exceeds the fair value of acquired assets and assumed liabilities together with contingent liabilities which are reported separately, are reported as goodwill. When the differ-ence is negative, this is reported directly in net income.
Transaction costs, excluding transaction costs
attributable to the issuance of equity or debt instru-ments are included in the cost.
Acquisitions made prior to 1 September 2004 (date of transition to IFRS)For acquisitions made before 1 September 2004, goodwill is reported, after impairment tests, at acquisi-tion cost, which corresponds to the carrying amount according to previous accounting principles. The classification and accounting treatment of business combinations taking place before 1 September 2004 have not been reassessed in accordance with IFRS 3 in establishing the Group’s opening balance as of 1 Sep-tember 2004 according to IFRS.
Financial statements of subsidiaries are included in the consolidated financial statements from the date of acquisition to the date on which control ceases to exist.
In cases in which the subsidiary’s accounting prin-ciples are not consistent with the Group’s accounting principles, adjustments have been made to the Group’s accounting principles.
Losses attributable to non-controlling interests are allocated to the non-controlling interests, although the non-controlling interests are recorded as a debit item in equity.
Acquisition of non-controlling interests Acquisition of non-controlling interest is reported as a transaction within equity, i.e. between the Parent Company (in retained profits) and the non-controlling interest. Consequently, goodwill does not arise in those transactions. A change in non-controlling inter-est is based on the proportional share of net assets.
Sales to non-controlling interestsSales to non-controlling interests, but where a con-trolling interest remains, are reported as a transaction within equity, i.e. between the owners of the Parent Company and the non-controlling interest. The differ-ence between payment received and the proportional share of the acquired net assets referring to the non-controlling interest, is reported in retained profits.
Associated companies Associated companies are the companies in which the Group exercises a significant influence, but not con-trol, regarding financial and operating policies, usu-ally through shareholdings of between 20% and 50% of the voting rights. From the point in time at which the significant influence is obtained, shares in the associated company are reported in the consolidated accounts according to the equity method. According to the equity method, the value of shares in the associ-ated company reported in the Group is equivalent to the Group’s participation in the associated company’s equity, as well as consolidated goodwill and any other remaining values on consolidated surplus and deficit value. The Group’s share of the associated company’s net income, adjusted for any depreciation/amortisa-tion, impairment or dissolution of acquired surplus and deficit values is reported as “Shares in the income of associated companies” in the net income for the Group. The main change in the carrying amount of shares in associated companies consists of these shares in profit, less dividends received from associated com-panies. The Group’s share of other comprehensive income in the associated companies is reported in a separate item in the Group’s other comprehensive income.
Transaction costs, with the exception of issue
expenses attributable to issuing of equity or debt instruments, are included in the acquisition cost.
Any difference at acquisition between the acquisi-tion cost for the holding and the owner Company’s participation in the fair value net of the associated company’s identifiable assets, liabilities and contin-gent liabilities, is reported according to the same prin-ciples as in acquisitions of subsidiaries.
When the Group’s share of the reported losses in the associated company exceeds the carrying amount of the participations in the Group, the value of the shares is reduced to zero. Losses are also settled against long-term financial transactions without col-lateral, which, in their economic substance, comprise a part of the owner Company’s net investment in the associated company. Continued losses are not report-ed unless the Group has provided guarantees to cover losses accrued in the associated company. The equity method is applied up to the point in time at which the significant influence ceases.
Transactions to be eliminated upon consolidationIntra-Group receivables and liabilities, income or expenses and unrealised gains or losses arising from intra-Group transactions are eliminated in their entire-ty upon the preparation of the consolidated accounts.
Unrealised gains arising from transactions with associated companies and companies under joint control are eliminated in an amount equivalent to the Group’s participating interest in the Company. Unreal-ised losses are eliminated in the same manner as unre-alised gains, but only to the extent to which there is no indication of impairment.
FOREIGN CURRENCY Transactions in foreign currency Transactions in foreign currency are translated to the functional currency at the exchange rate of the trans-action date. The functional currency is the currency in the primary economic environment in which the Company conducts its operations. Monetary assets and liabilities in foreign currency are translated to the functional currency at the exchange rate applicable on the balance sheet date. Exchange rate differences aris-ing on translation are reported in net income. Non-monetary assets and liabilities reported at historical acquisition cost are translated at the exchange rate at the time of the transaction. Non-monetary assets and liabilities reported at fair value are translated to the functional currency at the exchange rate applicable at the date of measurement at fair value, following which the exchange rate difference is reported in the same manner as other changes in value concerning the asset or liability.
Foreign operations’ financial statementsAssets and liabilities in foreign operations, including goodwill and other consolidated surplus and deficit values are translated from the foreign operations’ functional currencies to the Group’s reporting cur-rency, SEK, at the exchange rate of the balance sheet date. Income and expenses in foreign operations are translated to SEK at the average rate for the period, which comprises an approximation of the rates at the respective transaction dates. Exchange rate differences arising from the translation of foreign operations are reported in other comprehensive income as a transla-tion reserve. Upon the sale of foreign operations, the accumulated exchange rate differences referring to the operations are realised in net income of the Group.
CONT. NOTE 1 ACCOUNTING PRINCIPLES
NOTES66
Net investment in foreign operationsExchange rate differences arising in connection with the translation of a foreign net investment and the related effects of the hedging of the net investments are reported in other comprehensive income and are accumulated in a separate component in equity. Upon the sale of foreign operations, the accumulated exchange rate differences, less any currency hedging attributable to the operations, are realised in the net income of the Group.
INCOMESale of goods and servicesIncome from the sale of goods is reported in net income when the significant risks and rewards associ-ated with the ownership of the goods have been trans-ferred to the buyer. Income from services is reported when the service has been completed. A partially com-pleted service is reported in net income based on the stage of completion as at balance sheet date. Income is not reported if it is likely that the economic ben-efits will not accrue to the Group. If there is signifi-cant uncertainty regarding payment, related costs or the risk of the goods being returned, and if the seller retains a continuing involvement usually associated with ownership, then no income is recognised.
Income from property salesIncome from property sales is normally recognised on the date of taking possession unless the risks and rewards have been transferred to the buyer at an ear-lier date. The control of the asset may have been trans-ferred earlier than the possession date and, if so, the income is recognised at the earlier date. In assessing the date for income recognition, agreements between the parties concerning risks and rewards and continu-ing involvement are taken into consideration. In addi-tion, circumstances that can influence the outcome of the transaction and that are beyond the control of the seller and/or buyer are also taken into consideration.
Rental incomeRental income from the rental of property used in business operations is recognised in net income using the straight-line method, based on the terms of the rental agreement.
Government grants Government grants related to assets are reported in the statement of financial position as a reduction of the asset’s carrying amount.
OPERATING EXPENSES AND FINANCIAL INCOME AND EXPENSESOperating leasesExpenses regarding operating leases are reported in net income using the straight-line method over the lease term and in some cases according to the straight-line method during the period of December to April, when the assets are used. Benefits received in conjunction with the signing of such a lease agreement are reported in net income, reducing the lease expense. Variable charges are recognised as an expense in the periods in which they arise. All leases are operating leases.
Financial income and expensesFinancial income and expenses comprise interest income on bank deposits and receivables and interest-bearing securities, interest expenses on loans, coupons on interest swaps, dividend income and exchange rate differences.
Interest income on receivables and interest expens-es on liabilities are calculated with the application of the effective interest method. The effective inter-est is the interest which renders the present values of all the estimated future deposits and payments dur-ing the expected fixed interest term of the financial instrument equal to the net carrying amount of the receivables or liabilities. Interest income includes allo-cated amounts of transaction costs and any discounts, premiums and other differences between the original value of the receivable and the amount received upon maturity.
Dividend income is reported when the right to receive payments is established.
FINANCIAL INSTRUMENTSFinancial instruments reported in the statement of financial position for the Group include, on the asset side, cash and cash equivalents, accounts receivable, shares and other equity instruments and loans receiv-able. Accounts payable, issued debt and equity instru-ments, interest swaps, forward agreements and loans are included in liabilities and equity.
Financial instruments are initially reported at acquisition cost equivalent to the instrument’s fair value, with the addition of transaction costs for all financial instruments other than those belonging to the category ‘Financial assets at fair value through P/L’, which are reported excluding transaction costs. Subsequent reporting depends on the manner in which the instruments have been classified, in accordance with the following:
A financial asset or a financial liability is recog-nised in the statement of financial position for the Group when the Company becomes a party to the instrument’s contractual agreement. A receivable is recognised when the Company has performed and there is a contractual obligation for the other party to pay, even if the invoice has not yet been sent. Accounts receivable are recognised in the statement of financial position for the Group when an invoice has been sent. Liabilities are recognised when the counterparty has performed and there is a contractual obligation to pay, regardless of whether the invoice has been received. Accounts payable are recognised when the invoice has been received.
A financial asset is derecognised in the statement of financial position for the Group when the rights in the agreement are realised, mature or when the Com-pany loses control over them. The same applies for components of a financial asset. A financial liability is derecognised in the statement of financial position for the Group when the obligation in the agreement is fulfilled or is, in any other manner, terminated. The same applies for components of a financial liability.
The acquisition or sale of financial assets is report-ed on transaction date, which is the date on which the Company commits itself to acquiring or selling the asset, except for cases in which the Company acquires or sells listed securities, when settlement day reporting is applied.
The fair value of listed financial assets is equiva-lent to the asset’s listed bid price at balance sheet date. The fair value of unlisted financial assets is established through the utilisation of valuation techniques, for example, recently performed transactions, prices of similar instruments and discounted cash flows. For further information, see Note 32.
On each reporting date, the Company evaluates whether there are objective indications that a finan-cial asset or a group of financial assets is impaired. For
equity instruments classified as assets available-for-sale, a material and long-term decline in the fair value to an amount lower than the instrument’s acquisition cost is presumed before impairment is executed. If an asset classified as available-for-sale is impaired, any previously accumulated impairment reported directly against equity is recycled in net income. Impairment of equity instruments reported in the income statement may not be recycled in net income at a later occasion.
Financial instruments are classified in conjunc-tion with initial recognition based on the purpose for which the instrument was acquired, which influences the subsequent accounting of the instrument. Finan-cial instruments are subsequently reported according to their classification as follows:
Loans receivable and accounts receivableLoans receivable and accounts receivable are non-derivative financial assets with fixed or determina-ble payments that are not listed on an active market. Receivables arise when the Company provides funds, goods and services directly to the beneficiary with no intention of trading in the resulting claim. This cat-egory also includes acquired receivables. Assets in this category are measured at amortised acquisition cost. Amortised acquisition cost is determined on the basis of the effective interest calculated at the date of acqui-sition. Accounts receivable are classified to the catego-ry loans receivable and accounts receivable. Accounts receivable are reported at the amounts which are expected to inflow after deductions for individually assessed doubtful claims. The accounts receivables’ expected duration is short, for which reason they are usually reported at their nominal amount without dis-counting. Impairment of accounts receivable is report-ed in operating expenses.
Non-current receivables and other current receiva-bles are receivables arising when the Company pro-vides funds with no intention of trading in the result-ing claim. If the duration of the expected period of holding is longer than one year, they are deemed to comprise non-current receivables and if they are short-er than one year, they comprise other receivables.
Available-for-sale financial assetsThe category available-for-sale financial assets includes financial assets that are not classified in another category or which the Company has initially designated to this category. Assets in this category are measured on an ongoing basis at fair value, with changes in value reported in Other comprehensive income and the accumulated value changes in a spe-cial component of equity, although not value changes dependent on impairment, nor interest on debt instru-ments, income from dividends or exchange rate differ-ences on monetary items reported in net income.
At the time an investment is derecognised in the statement of financial position for the Group, accumu-lated profit or loss which has previously been reported in other comprehensive income is recycled through net income.
Financial investmentsFinancial investments comprise either non-current financial assets or current investments depending on the intention of the holding. If the maturity or the expected duration of the holding is longer than one year, they are deemed to comprise non-current finan-cial assets, and if they are shorter than one year, they comprise current investments.
CONT. NOTE 1 ACCOUNTING PRINCIPLES
NOTES 67
Other financial liabilitiesFinancial liabilities not held for trade are measured at amortised acquisition cost. Amortised acquisition cost is determined on the basis of the effective interest calculated at the time that the liability was recognised. This entails that overvaluation and undervaluation and costs directly related to share issues are allocated over the duration of the liability. Liabilities are clas-sified as other financial liabilities, which implies that they are initially reported at the amount received after deduction of transaction costs. In the subse-quent measurement, the loan is measured at amor-tised acquisition cost according to the effective inter-est method. Non-current liabilities have an expected duration longer than one year, while current liabilities have a duration less than one year. Accounts payable are classified in the category Other financial liabilities. Accounts payable have a short expected duration and are measured without discounting at their nominal amount.
Interest rate riskThe Group’s interest rate risk arises primarily through short-term borrowing and is managed by the CFO. According to the Financial Policy, the objective of the long-term debt portfolio is that the average fixed-interest period should be short-term. As this is consid-ered to be necessary due to the Company’s market and interest rate conditions, derivative instruments, such as interest swap agreements, can be utilised to man-age interest rate risk, which means that longer fixed-interest periods of 3-10 years may prevail.
Cash and cash equivalentsCash and cash equivalents includes cash-on-hand and immediately accessible funds on deposit with banks or equivalent institutions, as well as current investments having a duration of less than three months from the acquisition date and which are subject to only an insignificant risk of value fluctuations.
PROPERTY, PLANT AND EQUIPMENTProperty, plant and equipment are recognised as assets in the balance sheet when it is likely that the future economic benefits associated with the assets will accrue to the Company, and when the asset’s acquisi-tion cost can be calculated reliably.
Property, plant and equipment are recognised in the Group at acquisition cost, less accumulated depre-ciation and any impairment. The acquisition cost includes the price paid and any costs directly attribut-able to rendering the asset in a place and condition in which it can be utilised for the purpose intended by the acquisition. Examples of directly attributable costs included in acquisition cost are expenses for shipping and handling, installation, land registration certificates and consulting and legal services. Account-ing principles for impairment are stated below.
The acquisition cost for property, plant and equipment produced by the Company, itself, includes expenses for materials and employee costs, and, if applicable, other production costs considered to be directly attributable to the asset.
Property, plant and equipment consisting of com-ponents with differing estimated useful lifetimes are treated as separate components of property, plant and equipment.
The carrying amount for property, plant and equipment is removed from the statement of finan-cial position for the Group when the asset is disposed of or sold or when no future economic benefits are
expected from the use or disposal/sale of the asset. Gains or losses arising on the sale or disposal of an asset comprise the difference between the selling price and the carrying amount of the asset, less direct selling expenses. Gains or losses are recognised as other oper-ating income/expenses.
Subsequent expenditureSubsequent expenditure is added to the acquisition cost only when it is likely that the future economic benefits associated of the asset will accrue to the Com-pany and when the acquisition cost can be calculated reliably. All other subsequent expenditure is recog-nised as an expense in the period in which it arises.
The critical factor in determining when subse-quent expenditure is to be added to the acquisition cost is whether the subsequent expenditure refers to the replacement of identified components or parts thereof, if so, the subsequent expenditure is capital-ised. In cases in which a new component is identified, the expenditure is added to the acquisition cost. Any undepreciated carrying amount on replaced com-ponents, or parts of components, is eliminated and expensed in conjunction with the replacement. Repair costs are expensed on an ongoing basis.
Depreciation principlesDepreciation is reported on a straight-line basis over the asset’s estimated useful life. Land and land improvements associated with ski slopes are not depreciated. The Group applies component deprecia-tion, in which the estimated useful lives of the compo-nents form the basis for depreciation.
Estimated useful lives: Buildings
(owner-occupied properties) 15 – 50 years Land improvements 20 years Machinery and equipment 3 – 33 years
Owner-occupied properties consist of a number of components with differing estimated useful lives. The primary category is buildings and land. No deprecia-tion is charged on the land component, the estimated useful life of which is unlimited. Buildings, however, consist of a number of components with varying esti-mated useful lives. The estimated useful lives of these components have been determined to vary between 15 and 50 years.
The following primary groups of components have been identified and form the basis of depreciation on buildings:
Structure and foundation 50 years Structural additions, inner walls 40 years Fixtures and fittings: heating, electricity,
water and sanitation, ventilation, etc. 40 years External surfaces: facades, roof,
windows etc. 40 years Fixed equipment, kitchen equipment, etc. 25 years Heating and ventilation 30 years Internal surfaces, machinery, etc. 15 years
Machinery and equipment includes ski lifts and snowmaking facilities consisting of a number of com-ponents with varying estimated useful lives. The esti-mated useful lives for these components have been determined to vary between 10 and 33 years.
The following primary groups of components have been identified and form the basis of depreciation on lifts:
Foundations and masts 33 years Cabins, gondolas, chairs and carriers 15–25 years Lines 10–15 years Engines, gearboxes and electronics 15 years Other movable mechanisms 20 years
The following primary groups of components have been identified and form the basis of depreciation on snowmaking facilities:
Pipes and hydrants 20 years Compressors 15 years Pumps, snow cannons and electronics 10 years
The assessment of the residual values and useful lives of assets is reviewed annually.
INTANGIBLE ASSETSGoodwillGoodwill represents the difference between the acqui-sition cost of acquiring a business combination and the fair value of the acquired assets, assumed liabilities and any contingent liabilities.
Goodwill is measured at acquisition cost less any accumulated impairment. Goodwill is divided among cash-generating units and is not amortised; but is rath-er, tested annually for impairment.
Goodwill arising on the acquisition of associated companies is included in the carrying amount for the participations in associated companies.
In acquisitions of business combinations in which the cost is less than the net value of acquired assets and of assumed and contingent liabilities, the differ-ence is recognised directly in net income.
Other intangible assets Other intangible assets acquired by the Group are rec-ognised at acquisition cost less accumulated amortisa-tion and impairment.
Costs incurred for internally generated goodwill and internally generated trademarks are recognised in net income as they arise.
Expenditures for development of the Group’s booking and sales systems are capitalised when such expenditures are expected to produce future economic benefits. Capitalised expenditures comprise external invoiced costs and, if applicable, direct costs for the Company’s own personnel.
Subsequent expenditureSubsequent expenditure for capitalised intangible assets are recognised as an asset in the statement of financial position for the Group only when they increase the future economic benefits attributable to the asset to which the costs are related. All other expenditure is expensed as it arises.
Amortisation principles Amortisation is reported in net income on a straight-line basis over the estimated useful lives of the intangi-ble assets, as long as the useful lives are not indefinite. Goodwill and intangible assets with indefinite useful lives are tested for impairment on an annual basis or as soon as any indication arises that the asset in ques-tion has declined in value. Intangible assets subject to amortisation are amortised from the date on which the asset became available for use. The estimated use-ful lives are:
Lease agreements 25-50 years Capitalised development
expenditure, rental rights, etc. 5 yearsThe useful lives are reviewed on an annual basis.
CONT. NOTE 1 ACCOUNTING PRINCIPLES
NOTES68
INVENTORIESInventories are measured at the lower of acquisition cost and net realisable value. Net realisable value is the estimated sales price in current operations less estimated selling costs. The acquisition cost for inven-tories is calculated applying the First-in/First-out prin-ciple (FIFO) and includes expenditure arising from the acquisition of the inventories and for the transporta-tion of the assets to their current place and condition.
IMPAIRMENTThe carrying amounts of the Group’s assets are tested on each balance sheet date for indications of impairment. IAS 36 is applied as regards the impair-ment of assets other than financial assets, which are reported according to IAS 39, assets for sale and dis-posal groups, which are reported according to IFRS 5, inventories, plan assets used to finance employee ben-efits and deferred tax assets. The carrying amounts of assets other than those above are tested in accordance with the standard covering the asset.
For goodwill and other intangible assets with indefinite estimated useful lives and for intangible assets which are not yet ready for use, the recoverable amount is calculated annually or when an indication of impairment arises.
If it is not possible to establish the materially independent cash flow for a particular asset, the asset shall be grouped during impairment testing at the low-est level at which it is possible to identify material, independent cash flows (the cash-generating unit). Impairment is reported when an asset’s or cash gen-erating unit’s carrying amount exceeds its recoverable amount. Impairment is charged net income.
The impairment of assets attributable to a cash-generating unit (group of units) is initially allocated to goodwill, after which the assets included in the unit (group of units) are impaired proportionally.
Goodwill was tested for impairment 31 May 2013, even though there was no indication of impairment.
The recoverable amount of other assets is the high-er of the fair value less selling costs and value in use. In calculating the value in use, the future cash flow is dis-counted by a discounting factor taking into considera-tion risk-free interest and the risk associated with the particular asset. For an asset that does not generate a cash flow significantly independent of other assets, the recoverable amount is calculated for a cash-generating unit to which the asset belongs.
Impairment of financial assetsIn conjunction with each reporting, the Company carries out evaluations to determine whether there is objective evidence that the value of a financial asset or group of assets needs to be impaired. Objective evi-dence is comprised partly of observable circumstances which have taken place and which have a negative impact on the possibility of recovering the acquisition cost and also on the material or long-term reduction of the fair value of an investment in a financial invest-ment classified as an available-for-sale financial asset.
The Company classifies accounts receivable as doubtful when they have matured for payment in excess of 180 days. The impairment requirement of the receivables is determined on the basis of histori-cal experience of doubtful debts on similar receivables. The accounts receivable with an impairment require-ment are reported at the present value of expected future cash flows. The receivables with a short matu-rity which can be sold are not, however, discounted.
Equity instruments classified as available-for-sale financial assets are seen to incur an impairment requirement, and are impaired if the fair value is less
than the acquisition cost by a material amount, or when the value decrease is long-term. The Company considers a value decrease greater than 20% to be material, and a period of at least nine months com-prises a long-term decline in value.
With the impairment of an equity instrument clas-sified as an available-for-sale financial asset, previ-ously reported accumulated gains or losses in equity are reclassified via other comprehensive income in net income. The amount of the accumulated losses which are recycled from equity via other comprehensive income in net income is comprised of the difference between the cost and fair value, after deduction for any possible impairment of the financial asset which has previously been reported in net income.
Impairment of available-for-sale financial assets is reported in net income, included in net financial items.
Reversal of impairmentThe impairment of assets included in the scope of IAS 36 is reversed if there is both an indication that an impairment requirement is no longer in place and if there has been a change in the assumption providing the basis for the calculation of the recov-erable amount. The impairment of goodwill is, how-ever, never reversed. A reversal is recorded only to the degree that the asset’s value reported after reversal does not exceed the carrying amount which would have been reported, with deduction for impairment as applicable, if no impairment had been made.
Impairment of loans receivable and accounts receivable reported at amortised acquisition cost is reversed if the previous reason for impairment no longer exists and if full payment from the client can be expected to be received.
Impairment of equity instruments classified as available-for-sale, which have been previously report-ed in net income, is not reversed via net income, but via other comprehensive income. The impaired value is the value to which subsequent re-measurements are made, which is reported in other comprehensive income. The impairment of interest-bearing instru-ments, classified as available-for-sale financial assets, is reversed in net income if the fair value increases and such an increase can be seen to objectively refer to an event taking place after the impairment was executed.
EMPLOYEE BENEFITSDefined contribution plansDefined contribution plans are classified as plans in which the Company’s commitment is limited to the premium contributions the Company has committed to pay. In those cases, the size of the employee’s pen-sion depends on the premium contributions that the Company pays to the plan or to an insurance compa-ny and the return on capital in which these premium contributions result. Accordingly, the employee carries the actuarial risk (that the benefit becomes lower than expected) and the investment risk (that the invested assets will not suffice to give the expected benefits). The Company’s obligations regarding premium con-tributions to defined contribution plans are accounted for as an expense in net income as they are earned by the performance of services for a period of time by the employees on behalf of the Company.
Defined benefit plansThe Group’s net liability regarding defined benefit plans is calculated by an estimation of the future ben-efit earned by employees during their term of employ-ment in both the current and previous periods. This benefit is discounted to a present value and the fair value of any plan assets is deducted. The discount rate
is the interest rate, on the balance sheet date, of gov-ernment bonds with a duration corresponding to the Company’s pension commitment. The calculation is performed by a qualified actuary using the projected unit credit method.
When the benefits in a plan are improved, the portion of the increased benefit attributable to the employees’ service in previous periods is recognised as an expense in net income on a straight-line basis over the average period until the benefit is fully vested. If the benefit is fully vested, this amount is immediately reported as an expense in net income.
The so-called corridor method is applied, entailing that accumulated actuarial gains and losses exceeding 10% of the greater of either the commitments’ present value or the fair value of plan assets is recognised in net income over the expected average remaining peri-od of service for the employees covered by the plan. In other respects, actuarial gains and losses are not taken into consideration.
When calculations result in an asset for the Group, the carrying amount of the asset is limited to the net of unrecognised actuarial losses and unrecognised costs for service during previous periods and the present value of future refunds from the plan or decreased future contributions to the plan.
Where there is a difference between the manner in which the pension obligations have been determined in a legal entity and the manner in which the Group reports those obligations, then a provision or receiv-able for special employer’s contributions is calculated based on this difference. The provision or receivable is not calculated at present value.
All components included in the period’s expenses for a defined benefit plan are reported in operating profit/loss.
Termination benefitsThe cost of compensation in connection with the termination of employment is only reported if the Company is apparently committed, without realistic possibility of withdrawal, by a formal detailed plan to terminate the employment before the usual period of employment is terminated. When compensation is offered to encourage voluntary redundancy, an expense is reported if it is likely that the offer will be accepted and that the number of employees who will accept the offer can be estimated reliably.
Share-based paymentDuring 2007, a convertible debenture was issued for a total of MSEK 30. Conversion could have taken place up and until 31 August 2012. The convertible deben-ture was issued on the basis of market conditions and there was no benefit existing at the time of allocation. The equity component of the loan does not comprise a material amount which is the reason the convertible debenture is reported, in its entirety, as a liability. For further details, refer to Note 8.
PROVISIONSA provision is reported in the statement of financial position for the Group when the Group has an exist-ing legal or constructive obligation to do so as a result of past events, and when it is probable that an outflow of resources will be required to settle the commitment and the amount can be estimated reliably.
TAXES Income tax is comprised of current tax and deferred tax. Income tax is reported in net income, except when the underlying transaction is reported in Other com-prehensive income or directly against equity, in which
CONT. NOTE 1 ACCOUNTING PRINCIPLES
NOTES 69
case the related tax effects are reported in a corre-sponding manner.
Current tax is tax that is to be paid or received regarding the current year, with the application of the tax rates that are determined or that are likely to be adopted per the balance sheet date, as well as current tax attributable to previous periods.
Deferred tax is calculated according to the balance sheet method on temporary differences between the reported and tax values of assets and liabilities. The following temporary differences are not considered: temporary differences arising on initial recognition of goodwill, the first recognition of assets and liabilities which do not constitute business combinations and, at the date of the transaction, do not affect either the reported or taxable income. In addition, no consid-eration is given to temporary differences attributable to participations in subsidiaries and associated com-panies which are not expected to be reversed in the foreseeable future. The measurement of deferred tax is based on the manner in which the carrying amount of the asset or liability is expected to be realised or set-tled. Deferred tax is calculated with the application of the tax rates and tax regulations which are determined or which are likely to be adopted per the balance sheet date.
Deferred tax liabilities regarding deductible tem-porary differences and loss-carry forwards are report-ed only to the extent it is likely that they can be uti-lised. The value of deferred tax liabilities is reduced when it is no longer deemed likely that they can be utilised.
EARNINGS PER SHAREThe calculation of earnings per share is based on the Group’s net income attributable to the shareholders in the Parent Company and to the weighted average number of shares outstanding during the year. In con-junction with the calculation of earnings per share after dilution, the income and the average number of shares are adjusted to consider the effects of the dilu-tion of potential ordinary shares arising from convert-ibles and options issued to employees during report-ing periods. Dilution arising from options impacts the number of shares, and occurs only when the redemp-tion price is lower than the stock exchange rate. The greater the difference between the redemption price and the stock market price, the more significant the dilution effect. The dilution arising from convertible debentures is calculated by increasing the number of shares by the total number of shares represented by the convertible debentures, and by increasing income by the reported interest expense, after tax.
CONTINGENT LIABILITIESA contingent liability is reported when there is a possi-ble commitment arising from past events whose exist-ence can be verified only by one or more uncertain future events, or when there is a commitment which is not recognised as a liability or provision due to it being unlikely that an outflow of resources will be required.
PARENT COMPANY ACCOUNTING PRINCIPLESThe annual report for the Parent Company is pre-pared according to the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Report-ing Board’s standard RFR 2. The Swedish Financial Reporting Board’s statements for listed companies are also applied. The amendments to IFRS 1 First-time adoption of IFRS are applied.
Classification and formatFor the Parent Company an income statement and a statement of comprehensive income are reported. Fur-thermore, in the Parent Company the terminology of balance sheet and cash flow statement is used for the statements called statement of financial position and statement of cash flow, respectively, in the consolidat-ed accounts. The income statement and balance sheet for the Parent Company are prepared in accordance with the formats of the Annual Accounts Act, while the statement of comprehensive income, statement of change in equity and cash flow statement are based on IAS 1 Presentation of Financial Statements and IAS 7 Statement of Cash Flows. The differences in relation to the Group’s reports, which are applicable to the Parent Company’s income statement and balance sheet, con-sist primarily of the reporting of financial income and expenses, equity, and the existence of provisions as a separate item in the balance sheet.
Differences between the Group’s and the Parent Company’s accounting principlesDifferences between the Group’s and the Parent Com-pany’s accounting principles are specified below. The accounting principles stated below for the Parent Company have been consistently applied to all peri-ods presented in the Parent Company’s financial state-ments.
Subsidiaries and associated companies Participations in subsidiaries and associated compa-nies are reported in the Parent Company according to the acquisition cost method. This implies that trans-action costs are included in the carrying amount of investments in subsidiaries and associated companies. In the consolidated accounts, transaction costs attrib-utable to subsidiaries are reported directly in income when they arise.
Contingent purchase consideration is measured according to the probability that the purchase con-sideration will be payable. Any changes to the provi-sion/the receivable increase or reduce, respectively, the acquisition cost. In the consolidated accounts, contin-gent consideration is reported at fair value with any value changes affecting income.
An acquisition at a low price, corresponding to expected future losses and expenses, is dissolved dur-ing the expected periods in which the losses or expens-es are incurred. Acquisition at a low price arising from other causes is recognised as a provision to the extent that it exceeds the fair value of acquired iden-tifiable non-monetary assets. The portion exceeding this value is recognised directly as income. The portion that does not exceed the fair value of acquired identifi-able non-monetary assets is recognised as income on a systematic basis over a period which is calculated as the remaining weighted average useful life of the acquired identifiable depreciable assets. In the consoli-dated accounts, acquisitions at low prices are reported directly in income.
FINANCIAL GUARANTEESThe Parent Company’s financial guarantee contract consists primarily of guarantor commitments for the benefit of subsidiary companies. Financial guaran-tees signify that the Company has a commitment to replace the owner of a liability item for losses suffered by this entity on account of a given debtor not fulfill-ing payments when due according to contract. In the accounting of financial guarantee contracts, the Parent Company applies one of the mitigation rules permit-ted by the Swedish Financial Reporting Board in com-
parison with the regulations of IAS 39. This mitigation rule refers to financial guarantee contracts issued for the benefit of subsidiary companies, associated com-panies and joint ventures. The Parent Company rec-ognises financial guarantee contracts as provisions in the statement of financial position for the Group when the Company has a commitment for which payment will probably be required for regulation to take place.
Financial instrumentsThe Parent Company applies the rules of the Swedish Annual Accounts Act, Chapter 4, §14 a-e, allowing the measurement of certain financial instruments at fair value.
Reversal of impairmentImpairment of equity instruments classified as avail-able-for-sale financial assets is not reversed via net income in the Group.
In the Parent Company, however, equivalent rever-sals are reported via the income statement.
Employee benefitsThe Parent Company applies other bases for the cal-culation of defined benefit plans than those stated in IAS 19. The Parent Company follows the provisions of the Swedish Pension Obligations Vesting Act and the Swedish Financial Supervisory Authority’s regula-tions, as this is a condition for the right to fiscal deduc-tion. The most significant differences compared with the regulations in IAS 19 are the manner in which the discount rate is determined, that the calculation of the defined benefit commitments is based on current salary levels without applying assumptions regarding future salary increases, and that all actuarial gains and losses are reported in the income statement as they arise.
Taxes In the Parent Company, reported untaxed reserves include deferred tax liabilities. In the consolidated accounts, untaxed reserves are divided into deferred tax liabilities and equity.
Group contributions and shareholders’ contributions for legal entitiesThe Company reports Group contributions and share-holders’ contributions in accordance with the Swedish Financial Reporting Board’s statement. Shareholders’ contributions are recognised directly in equity by the recipient and are capitalised in shares and participa-tions by the contributing entity, to the extent that impairment is not required. Group contributions that a Parent Company receives from a subsidiary are reported in accordance with the same principles as regular dividends from subsidiaries. Group contribu-tions paid from Parent Company to subsidiaries are recognised in income.
CONT. NOTE 1 ACCOUNTING PRINCIPLES
NOTES70
NOTE 2 DISTRIBUTION OF NET SALES
GROUP, MSEK
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Alpine skiing/SkiPasses 927 857
Accommodation 205 202
Ski rental 134 134
Ski school/Activities 46 45
Sporting goods outlets 70 70
Property service 124 110
Other 159 134
1,665 1,552
PARENT COMPANY, MSEK
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Alpine skiing/SkiPasses 615 567
Accommodation 135 133
Ski rental 92 94
Ski school/Activities 41 40
Sporting goods outlets 54 55
Property service 71 68
Other 140 119
Net sales for the Parent Company originating in Sweden 1,148 1,076
NOTE 3 GROUP OPERATING SEGMENTS
DESTINATIONS/PROPERTY DEVELOPMENT
Destinations Sweden Destinations Norway Total Destinations
MSEK 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12
External income 1,145 1,064 514 487 1,659 1,551
Income from other segments 25 24 6 9 31 33
Total income 1,170 1,088 520 496 1,690 1,584
Operating expenses -847 -770 -371 -358 -1218 -1,128
Operating expenses in other segments -51 -51 -21 -24 -72 -75
Income from associated companies 0 0 1 1 1 1
Depreciation/amortisation -126 -129 -74 -76 -200 -205
Operating profit/loss 146 138 55 39 201 177
Operating margin, % 12 13 11 8 12 11
Fixed assets excluding participations in associated companies 1,564 1,591 1,126 1,196 2,690 2,787
Participations in associated companies 8 8 0 0 8 8
Gross investments fixed assets 113 162 27 51 140 213
Property development
Inter-segment eliminations
Total Group
MSEK 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12
External income 47 22 1,706 1,573
Income from other segments 42 43 -73 -76 0 0
Total income 89 65 -73 -76 1,706 1,573
Operating expenses -25 -25 - - -1,243 -1,153
Operating expenses in other segments -1 -1 73 76 0 0
Income from associated companies -26 -9 - - -25 -8
Depreciation/amortisation -19 -18 - - -219 -223
Operating profit/loss 18 12 0 0 219 189
Operating margin, % 20 18 13 12
Financial items, net -59 -50
Income for the Group before tax 160 139
Fixed assets excluding participations in associated companies 667 630 - - 3,357 3,417
Participations in associated companies 236 268 - - 244 276
Total fixed assets 903 898 - - 3,601 3,693
Gross investments in fixed assets 43 147 - - 183 360
Sweden Norway Total Group
MSEK 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12
External income 1,217 1,084 489 489 1,706 1,573
Fixed assets 2,127 2,191 1,474 1,502 3,601 3,693
Segment reporting has been prepared for the Group’s Business Areas Destinations and Property De-
velopment, and has been determined based on the information handled by the Group’s management,
which is also used to follow up the return generated by the segment, as well as for the allocation of
resources (investments) to the segment. The Group’s internal reporting system is based on the follow
up of the Group’s operations within the different segments.
External income refers exclusively to sales within the Group’s segments and is raised in the country
were the guest is located, as well as compensation gains on the assets in the respective country. Income
and operating expenses from other segments refer to transactions between the Business Areas
Destinations and Property Development.
The segment’s fixed assets and investments in fixed assets include all investments in intangible fixed
assets, tangible fixed assets and financial non-current assets excluding financial instruments and defer-
red tax assets.
All purchases and sales between Group companies have taken place under market conditions.
NOTE 5 OWN WORK CAPITALISED
Own work capitalised includes capitalised expenses for the work performed by SkiStar’s personnel as
regards investments and expenses attributable to the Company’s own construction equipment.
Own work capitalised during the year amounts to TSEK 2,040 (3,292), which is included in person-
nel costs.
Own work capitalised during the year for the Parent Company amounts to TSEK 719 (1,637)
NOTE 6 FEES AND REMUNERATION TO AUDITORS
GROUP
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
KPMG
Audit assignment 1,859 1,440
Other assignments 469 457
2,328 1,897
PARENT COMPANY
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
KPMG
Audit assignment 1,192 660
Other assignments 39 173
1,231 833
Audit assignments include review of the annual and consolidated accounts and the bookkeeping, as
well as of the administration by the Board of Directors and CEO, other tasks incumbent upon the
auditor to perform and advice or other assistance resulting from observations made during the audit
or implementation of such other tasks.
NOTE 7 FEES FOR OPERATING LEASES
GROUP
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Leasing expenses for the financial year 21,712 1,683
Contracted future leasing fees referring to contracts
which are non-cancellable before maturity, fall due
as follows:
Within one year: 23,751 1,177
Between one and five years 90,483 2,920
114,234 4,097
PARENT COMPANY
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Leasing expenses for the financial year 19,665 452
Contracted future leasing fees referring to contracts
which are non-cancellable before maturity, fall due
as follows:
Within one year: 22,185 231
Between one and five years 87,814 1,155
109,999 1,386
During the year, leasing fees increased primarily due to SkiStar AB’s rental of the baths in Experium
within the destination Sälen, furthermore new snow grooming machines have been leased.
Of the above operating leases, there are no commitments with a duration exceeding five years.
SkiStar has operating leases for grooming machinery, snow scooters and construction machinery.
The leasing fees for a portion of the grooming machinery are paid during the period December –
April, which is done in order that these costs can be charged to the periods in which the machinery is
actually used. The majority of leasing agreements are paid on a straight-line basis over the year.
Leasing agreements contain no conditions stipulating that the object of the lease shall be acquired
by SkiStar when the agreement expires. However, these agreements may be extended. Leasing fees
are recorded as a rental expense in the consolidated income statement.
SkiStar has a partnership with two local companies in Vemdalen and Klövsjö from whom SkiStar
hires three ski lifts. The lease agreements have durations of 20 years and the annual leasing fee for
these lifts is MSEK 7.1. Starting with the season 2013/14, there is also a partnership with a company in
Åre from whom SkiStar rents lifts, and the annual rental fee is MSEK 7.9.
NOTE 4 OTHER OPERATING INCOME
Other operating income primarily includes capital gains from the sale of fixed assets. This amounts to
MSEK 40 in the Group (21) and to MSEK 24 in the Parent Company (6).
NOTES 71
Pensions
Members of senior management have the right to pension solutions according to collective
agreements and agreements with SkiStar. For the CEO, the Company pays pension contributions
corresponding to 30% of the salary, and there is an obligation of MSEK 3.7 secured by an endowment
insurance. For other members of senior management, pension payments are made according to the
customary ITP plan.
Terms of notice and severance pay
The term of notice initiated by SkiStar is a maximum of 24 months and, for term of notice initiated by
the senior manager, a maximum of 6 months.
Decisions regarding remuneration
The Board of Directors makes decisions regarding salary and other terms of employment for the
CEO after consultation with the Board of Directors’ Compensation Committee. The Compensation
Committee makes decisions regarding salary and other terms of employment for other members
of senior management after consultation with the CEO. Any changes in the bonus system are to be
determined by the Board of Directors.
CONVERTIBLES PROGRAMME 2007/12 AND OPTIONS
During the autumn of 2007, the employees of SkiStar were invited to subscribe to convertible
debentures in a total amount of MSEK 30, which, during their duration, can be converted to a total of
250,000 Class B shares at a conversion rate of SEK 138. The convertible debentures were issued on
market terms and with no benefit granted in their allotment, for which reason the issue is not covered
by IFRS 2. The convertible debenture bore interest equivalent to the 12-month STIBOR + 0.3 percen-
tage points. The contractual duration of the convertibles programme expired on 31 August 2012 (see
Note 24). No conversion has taken place and the loans were repaid in September 2012.
CONT. NOTE 8 INFORMATION ON PERSONNEL AND REMUNERATION TO
THE BOARD OF DIRECTORS AND THE CEO
NOTE 9 DEPRECIATION OF TANGIBLE AND AMORTISATION OF
INTANGIBLE FIXED ASSETS
GROUP
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Capitalised expenditure for IT systems 9,864 8,535
Rental rights and similar rights 6,506 6,028
Buildings, land and land improvements 57,953 58,705
Plant, machinery and equipment 144,288 149,217
218,611 222,485
PARENT COMPANY
Capitalised expenditure for IT systems 9,864 8,535
Rental rights and similar rights 1,582 1,017
Buildings, land and land improvements 27,019 27,677
Plant, machinery and equipment 86,225 89,589
124,690 126,818
NOTE 10 INCOME FROM PARTICIPATIONS IN GROUP AND ASSOCIATED
COMPANIES
PARENT COMPANY
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Dividend 37,827 35,144
Group contribution -612 1,221
37,215 36,365
Dividends for both years have been received from the subsidiary SkiStar Norge AS.
NOTE 8 INFORMATION ON PERSONNEL AND REMUNERATION TO THE
BOARD OF DIRECTORS AND THE CEO
AVERAGE NUMBER OF EMPLOYEES
The average number of employees, classified by gender, has amounted to:
GROUP
2012-09-01
-2013-08-31 Share, %
2011-09-01
-2012-08-31 Share, %
Sweden
Women 328 40 310 40
Men 488 60 474 60
Norway
Women 85 32 88 33
Men 184 68 179 67
Total for the Group 1,085 1,051
PARENT COMPANY
Sweden
Women 320 40 305 39
Men 480 60 470 61
Total for the Parent Company 800 775
MEMBERS OF THE BOARD OF DIRECTORS
AND GROUP MANAGEMENT CLASSIFIED BY
2013-08-31
% women
2012-08-31
% womenr
GROUP
Board of Directors 22% 22%
Other senior management 0% 0%
PARENT COMPANY
Board of Directors 22% 22%
Other senior management 0% 0%
2012-09-01 - 2013-08-31 2011-09-01 - 2012-08-31
REMUNERATION AND SOCIAL
SECURITY CONTRIBUTIONS
Salaries and
remuneration
Social security
contributions
Salaries and
remuneration
Social security
contributions
PARENT COMPANY
Senior management 14,019 7,265 11,557 7,066
Other personnel 239,327 76,336 223,427 58,361
(of which pension costs, senior management)1) (2,861) (3,434)
(of which pension costs, other personnel) (12,785) (8,719)
SUBSIDIARIES
Senior management 2,530 539
Other personnel 123,319 20,399 117,605 19,637
(of which pension costs, senior management) (271)
(of which pension costs, other personnel) (5,295) (4,869)
GROUP 376,665 104,000 355,119 85,603
(of which pension costs) 2) (20,941) (17,293)
1) Of the Parent Company’s pension costs, TSEK 815 (833) refers to the CEO. The Parent Company’s total
pension costs are comprised of defined contribution pensions. 2) Of the Group’s pension costs, TSEK 815 (833) refers to the CEO and TSEK 2,046 (2,872) to other
senior management. Subsidiaries consist primarily of the Norwegian operations. In the Norwegian opera-
tions, pension costs primarily comprise defined benefit plans.
BENEFITS TO SENIOR MANAGEMENT
Remuneration has been paid to members of the Board of Directors in the amount of TSEK 730 (730),
of which TSEK 155 (155) was paid to the Chairman and TSEK 115 (115) to each of the other mem-
bers elected by the Annual General Meeting. The CEO, who is also a Board member, receives no Board
fees. In other respects, no Board Member has received remuneration other than the Board fees.
The CEO has received salary, remuneration and benefits in a total value of TSEK 3,973 (2,951), of
which the CEO’s bonus totals TSEK 1,080 (0). The Deputy CEO has received salary, remuneration and
benefits at a total value of TSEK 2,357 (1,737), of which the bonus amounts to TSEK 608 (0). Salaries,
remunerations and benefits paid to the other 4 (8) members of Group management amounted to
TSEK 7,689 (9,399), of which TSEK 956 (0) constituted bonuses.
GUIDELINES FOR REMUNERATION TO SKISTAR’S GROUP MANAGEMENT
The guidelines stated below include remuneration and other terms of employment for Group ma-
nagement in SkiStar. These individuals are referred to below as senior management. These guidelines
were prepared by the Compensation Committee and were approved by the Annual General Meeting
on 8 December 2012 for adoption. These guidelines shall be applied in new agreements, and in
alterations to existing agreements.
Fundamental principle
Total remuneration and other terms of employment shall be sufficiently attractive to retain, or attract,
new, competent senior managers.
Fixed salary
Members of senior management shall be offered a fixed salary in line with market levels in relation
to their responsibilities, competence, performance and regional salary levels. The fixed salary shall be
established annually on a contractual basis.
Bonuses
Members of Group management are entitled to bonuses based on the current bonus programme
applying to SkiStar’s Group management, according to a resolution by the Board of Directors. The
maximum amount for bonuses is 40% of 12 times the current monthly salary, which gives a maximum
of MSEK 3.8. This year’s outcome totals MSEK 2.6. Bonuses are paid based on the Company’s perfor-
mance in terms of growth per share, return on equity, operating margin and organic growth.
Non-monetary benefits
Members of senior management are entitled to extra health insurance and to the benefits available to
other employees within SkiStar.
NOTES72
REPORTED IN THE PARENT COMPANY BALANCE SHEET
PARENT COMPANY 31 AUG 2013
Deferred
tax assets
Deferred
tax liabilities Net
Fixed assets - -125,757 -125,757
Unutilised loss carry-forwards 43,684 - 43,684
Cash flow hedges - -221 -221
43,684 -125,978 -82,294
Set-off - - -
Net deferred tax liability 43,684 -125,978 -82,294
PARENT COMPANY 31 AUG 2012
Deferred
tax assets
Deferred
tax liabilities Net
Fixed assets 105 -146,334 -146,229
Unutilised loss carry-forwards 51,793 - 51,793
Cash flow hedges 2,890 - 2,890
54,788 -146,334 -91,546
Set-off - - -
Net deferred tax liability 54,788 -146,334 -91,546
CHANGE IN DEFERRED TAX ON TEMPORARY DIFFERENCES AND LOSS CARRY-FORWARDS
GROUP 31 Aug 2013 Opening balance
Recognised in
the Statement of
comprehensive
income
Recognised in
Other compre-
hensive income Closing balance
Fixed assets -212,318 29,068 2,467 -180,783
Unutilised loss carry-forwards 217,384 -36,113 - 181,271
Cash flow hedges 6,086 - -3,648 2,438
Other -4,975 -1,975 - -6,950
6,177 -9,020 -1,181 -4,024
PARENT COMPANY 31 Aug
2013 Opening balance
Recognised
in the Income
statement
Recognised in
Other compre-
hensive income Closing balance
Fixed assets -146,229 20,472 - -125,757
Unutilised loss carry-forwards 51,793 -8,877 42,916
Cash flow hedges 2,890 - -3,111 -221
Other - 768 - 768
-91,546 12,363 -3,111 -82,294
GROUP 31 Aug 2012 Opening balance
Recognised in
the Statement of
comprehensive
income
Recognised in
Other compre-
hensive income Closing balance
Fixed assets -201,136 -11,182 - -212,318
Unutilised loss carry-forwards 173,977 43,407 - 217,384
Cash flow hedges - - 6,086 6,086
Other -3,400 -1,575 - -4,975
-30,559 30,650 6,086 6,177
PARENT COMPANY 31 Aug
2012 Opening balance
Recognised
in the Income
statement
Recognised in
Other compre-
hensive income Closing balance
Fixed assets -56,431 -89,800 - -146,229
Unutilised loss carry-forwards - 44,711 - 51,793
Cash flow hedges 6,938 - 2,890 2,890
-49,493 -45,089 2,890 -91,546
The entirety of the deferred tax liability amounting to TSEK 26,039 (27,616) refers to the Norwegian
operations. Deferred tax assets in the Swedish operations amounted to TSEK 22,015 (33,637). All
unutilised deficits have been valued as of 31 August 2012. The deficits have, mainly, been added to the
Group through the acquisition of a company holding MSEK 811 in unutilised loss carry-forwards.
At the end of the financial year, there remain tax deficits amounting to MSEK 824 (826), of which
MSEK 0 (3) refers to the Norwegian operations.
The deficit is not limited in time, and, consequently, information on maturity dates is not provided.
The Government has proposed that the Swedish corporate tax rate be reduced from 26.3% to
22.0% with effect from 1 January 2013, to apply to financial years commencing on or after that date.
For SkiStar AB, this means that the new proposed tax rate will be applicable from the financial year
2013/2014. Deferred taxes in both the Group and the Parent Company have been revalued at tax
rates of 22.0% in Sweden and 28.0% in Norway.
In the Government’s budget it states that the rules governing tax exemption for income from
specially assessed properties is to be removed. SkiStar has applied these rules in its Swedish operations.
The change will mean that from the financial year 2014/15, the entire income in SkiStar’s’ Swedish
operations is to be taxed. SkiStar AB also has more than MSEK 800 of unused tax losses, implying that
the Company will not pay taxes for a number of years.
CONT. NOTE 11 TAXESNOTE 11 TAXES
REPORTED IN COMPREHENSIVE INCOME
GROUP
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Current tax expense (-) /revenue(+)
Tax for the period -14,159 -12,725
Adjustment of previous year’s tax -8 -
-14,167 -12,725
Deferred tax expense (-) /revenue(+)
Deferred tax referring to temporary differences -2,790 -12,911
Deferred tax due to change in tax rates -5,693 -
Deferred tax in tax value capitalised during the year in loss carry-forward -730 43,407
Deferred tax expenses due to utilisation of previously capitalised tax value in loss-carry forward 0 154
-9,213 30,650
Total reported tax revenue/expenses in the Group -23,380 17,925
REPORTED IN THE INCOME STATEMENT
PARENT COMPANY
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Deferred tax expense (-) /revenue(+)
Deferred tax referring to temporary differences -3,115 -89,800
Deferred tax due to change in tax rates 15,320 -
Deferred tax in tax value capitalised during the year in loss carry-forward -34 44,711
12,171 -45,089
Total reported tax revenue/expenses in the Parent Company 12,171 -45,089
RECONCILIATION OF EFFECTIVE
TAX
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
GROUP Percent Amount Percent Amount
Income before taxes 159,987 138,623
Tax according to current tax rate for the Parent Company 22.0% -35,197 26.3% -36,458
Difference in tax rate in foreign operations 2.6% -4,239 1.1% -1,493
Non-deductible expenses 56.1% -89,730 79.3% -109,887
Non-taxable income -69.7% 111,464 -90.0% 124,730
Tax attributable to previous years 0.1% -201 0.0% 0
Standard interest on tax allocation reserves 0.0% -4 0.0% -19
Effect of change in tax rates 3.4% -5,500 0.0% 0
Revaluation of loss carry-forwards 0.0% - -29.2% 40,422
Other 0.0% 27 0.0% 0
Reported effective tax 14.6% -23,380 -12.5% 17,295
RECONCILIATION OF EFFECTIVE
TAX
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
PARENT COMPANY Percent Amount Percent Amount
Income before taxes 147,322 440,495
Tax according to current tax rate for the Parent Company 22.0% -32,411 26.3% -115,850
Non-deductible expenses 60.9% -89,728 23.0% -101,367
Non-taxable income -75.7% 111,460 -39.1% 172,128
Non-taxable dividends from Group companies -5.6% 8,322 - -
Tax attributable to previous years 0.1% -193 0.0% -
Effect of change in tax rates -10.5% 15,513 0.0% -
Other 0.5% -792 0.0% -
Reported effective tax -8.3% 12,171 10.2% -45,089
REPORTED IN THE STATEMENT OF FINANCIAL POSITION FOR THE GROUP
GROUP 31 AUG 2013
Deferred
tax assets
Deferred
tax liabilities Net
Fixed assets - -180,783 -180,783
Unutilised loss carry-forwards 181,271 - 181,271
Cash flow hedges - 2,438 2,438
Other - -6,950 -6,950
181,271 -185,295 -4,024
Set-off -159,256 159,256
Net deferred tax liability 22,015 -26,039 -4,024
GROUP 31 AUG 2012
Deferred
tax assets
Deferred
tax liabilities Net
Fixed assets - -212,318 -212,318
Unutilised loss carry-forwards 217,384 - 217,384
Cash flow hedges - 6,086 6,086
Other - -4,975 -4,975
217,384 -211,207 6,177
Set-off -184,015 184,015 -
Net deferred tax liability 33,369 -27,192 6,177
NOTES 73
NOTE 12 EARNINGS PER SHARE
NUMBER OF SHARES BEFORE DILUTION
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Total number of shares, 1 September 39,188,028 39,188,028
Effect of new share issues - -
Weighted average number of shares during the year, before dilution 39,188,028 39,188,028
EARNINGS PER SHARE BEFORE DILUTION
Net income for the year 136,902 156,548
Average number of outstanding shares 39,188,028 39,188,028
Earnings per share before dilution 3:49 3:99
The calculation of earnings per share has been based on net income for the year attributable to
the shareholders in the Parent Company, amounting to TSEK 136,902 (156,548) and on a weighted
average number of outstanding shares totalling 39,188,028 shares (39,188,028).
NUMBER OF SHARES AFTER DILUTION
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Weighted average number of shares during the year, before dilution 39,188,028 39,188,028
Effect of convertibles programme - 250,000
Weighted average number of shares during the year, after dilution 39,188,028 39,438,028
EARNINGS PER SHARE AFTER DILUTION
Net income for the year 136,902 156,548
Effect of interest on convertible debt (after tax) 60 873
Average number of outstanding shares 39,188,028 39,438,028
Earnings per share after dilution 3:49 3:99
The calculation of earnings per share has been based on net income for the year attributable to
the shareholders in the Parent Company, amounting to TSEK 136,902 (156,548) and on a weighted
average number of outstanding shares totalling 39,188,028 shares (39,188,028).
The convertible debenture issued in 2007 has expired during August 2012 without conversion and
the loan portion was repaid to the holders in September 2012.
NOTE 13 INTANGIBLE FIXED ASSETS
GROUP
Capitalised expenditure for
IT systems
Rental rights and similar
rights Goodwill Total
Accumulated acquisition cost
Opening balance, 1 Sept 2011 82,873 139,396 93,232 315,501
Capitalised expenditure 11,283 3,288 - 14,571
Reclassifications 3,884 62 - 3,946
Exchange rate differences - -2,083 -2,435 -4,518
Closing balance, 31 Aug 2012 98,040 140,663 90,797 329,500
Opening balance, 1 Sept 2012 98,040 140,663 90,797 329,500
Capitalised expenditure 8,176 915 - 9,091
Reclassifications 3,998 123 - 4,121
Exchange rate differences - -3,878 -4,529 -8,407
Closing balance, 31 Aug 2013 110,214 137,823 86,268 334,305
Accumulated amortisation and impair-
ment
Opening balance, 1 Sept 2011 -62,753 -41,463 - -104,216
Amortisation -8,535 -6,028 - -14,563
Exchange rate differences - 929 - 929
Closing balance, 31 Aug 2012 -71,288 -46,562 - -117,850
Opening balance, 1 Sept 2012 -71,288 -46,562 - -117,850
Amortisation -9,864 -6,506 - -16,370
Exchange rate differences - 2,018 - 2,018
Closing balance, 31 Aug 2013 -81,152 -51,050 - -132,202
Reported value, 31 Aug 2012 26,752 94,101 90,797 211,650
Reported value, 31 Aug 2013 29,062 86,773 86,268 202,103
PARENT COMPANY
Capitalised expenditure for
IT systems
Rental rights and similar
rights Goodwill Total
Accumulated acquisition cost
Opening balance, 1 Sept 2011 82,873 10,244 18,442 111,559
Capitalised expenditure 11,283 3,289 - 14,572
Reclassifications 3,884 62 - 3,946
Closing balance, 31 Aug 2012 98,040 13,595 18,442 130,077
Opening balance, 1 Sept 2012 98,040 13,595 18,442 130,077
Capitalised expenditure 8,176 915 9,091
Reclassifications 3,998 123 - 4,121
Closing balance, 31 Aug 2013 110,214 14,633 18,442 143,289
Accumulated amortisation and impair-
ment
Opening balance, 1 Sept 2011 -62,753 -6,595 -18,442 -87,790
Amortisation -8,535 -1,017 - -9,552
Closing balance, 31 Aug 2012 -71,288 -7,612 -18,442 -97,342
Opening balance, 1 Sept 2012 -71,288 -7,612 -18,442 -97,342
Amortisation -9,864 -1,582 - -11,446
Closing balance, 31 Aug 2013 -81,152 -9,194 -18,442 -108,788
Reported value, 31 Aug 2012 26,752 5,983 0 32,735
Reported value, 31 Aug 2013 29,062 5,439 0 34,501
Of the year’s capitalised expenditure and reclassifications, a total of TSEK 4,178 (11,283) is comprised
of internally-developed intangible assets in both the Parent Company and the Group.
IMPAIRMENT TESTING OF CASH-GENERATING UNITS REPORTING GOODWILL
THE FOLLOWING CASH-GENERATING UNITS REPORT
GOODWILL VALUES 2013-08-31 2012-08-31
Accommodation booking, Hemsedal 13,333 14,005
Accommodation booking, Åre 1,106 1,106
Ski rental, Åre 524 524
‘Årevisionen’ 747 747
‘Skidåkarna Åre’ 3,419 3,419
Hemsedal Group 2,804 2,902
Trysil Group 48,593 51,641
Tandådalens Fjällhotell Service AB 2,400 2,400
Hammarbybacken AB 1,510 1,510
Ski rental, Trysil 11,348 12,059
Fjällförsäkringar AB 484 484
86,268 90,797
An analysis of any impairment requirements for intangible assets indicates that there are no such
requirements. Impairment testing is based on a calculation of value in use. The most important as-
sumptions in the five-year plan are growth in sales, net income and cash flow per cash-generating unit.
This value is based on cash flow projections for 25 years (25), of which the first five years are based
on the Company’s Business Plan. The forecast period’s total length (25 years) corresponds to the use-
ful lifetime of the most important assets, ski lifts. The cash flow forecasted after the first five years has
been based on an annual growth rate of 2% (2%). The present value of forecasted cash flows has been
calculated on the basis of a discount rate of 6% (8%) before tax. A total of 84% (89%) of the Group’s
goodwill should be attributed to the Norwegian operations, of which the majority refers to Trysil.
SkiStar’s Norwegian operations have experienced a positive development during the financial years
following these acquisitions, and following a few years of decline, the trend is positive again this year.
NOTES74
NOTE 15 PARTICIPATIONS IN GROUP COMPANIES
2013-08-31 2012-08-31
Opening balance 249,635 249,635
Closing balance 249,635 249,635
SPEC OF PARENT COMPANY’S SHARES IN GROUP COMPANIES 2013-08-31 2012-08-31
SUBSIDIARY/CORPORATE IDENTITY NUMBER/REGISTERED OFFICES Number of shares Participation, % Reported Value Reported Value
Sälens Högfjällshotell AB / 556200-6311 / Sälen 2,600,000 100.0% 9,427 9,427
Tandådalens Fjällhotell Service AB / 556086-0990 / Sälen 42,000 100.0% 3,000 3,000
Åre Invest AB / 556535-3579 / Åre 100,000 100.0% 775 775
Vintertorget i Sälen KB / 969618-0786 / Sälen 198 99.0% 198 198
SkiStar Norge AS / NO977107520 / Hemsedal 5,000 100.0% 130,898 130,898
Hammarbybacken AB / 556650-2570 / Stockholm 910 91.0% 1 1
Vemdalens Sportaffärer & Skiduthyrning AB / 556068-9761 / Vemdalen 1,000 100.0% 48,531 48,531
Fjällinvest AB / 556426-8380 / Sälen 161,000 100.0% 25,279 25,279
Fjällmedia AB / 556755-1055 / Sälen 1,000 100.0% 100 100
Bostadsrätter i Åre AB / 556725-5178/ Åre 1,000 100.0% 100 100
Fjällförsäkringar AB / 516406-0708 / Sälen 30,000 100.0% 30,484 30,484
Lindvallen Fastighet AB / 556250-6997 / Sälen 2,000 100.0% 842 842
249,635 249,635
NOTE 14 TANGIBLE FIXED ASSETS
GROUP
Buildings, land and land
improvementsMachinery and
EquipementConstruction
in progress Total
Accumulated acquisition cost
Opening balance, 1 Sept 2011 2,401,060 2,636,286 163,439 5,200,785
New acquisitions 34,429 91,678 77,018 203,125
Sales and disposals -6,104 -44,305 -1,120 -51,529
Reclassifications, etc. 33,524 41,304 -78,774 -3,946
Exchange rate differences -14,723 -31,729 -661 -47,113
Closing balance, 31 Aug 2012 2,448,186 2,693,234 159,902 5,301,322
Opening balance, 1 Sept 2012 2,448,186 2,693,234 159,902 5,301,322
New acquisitions 29,984 35,484 63,317 128,785
Business combinations 36,142 915 12,321 49,378
Sales and disposals -8,796 -40,688 -2,476 -51,960
Reclassifications, etc. 42,537 24,759 -71,418 -4,122
Exchange rate differences -41,579 -58,830 -788 -101,197
Closing balance, 31 Aug 2013 2,506,474 2,654,874 160,858 5,322,206
Accumulated depreciation and
impairment
Opening balance, 1 Sept 2011 -555,852 -1,587,917 - -2,143,769
Sales and disposals 489 41,943 - 42,432
Reclassifications, etc. - - - -
Depreciation -58,705 -149,217 - -207,922
Exchange rate differences -2,803 27,534 - 24,731
Closing balance, 31 Aug 2012 -616,871 -1,667,657 - -2,284,528
Opening balance, 1 Sept 2012 -616,871 -1,667,657 - -2,284,528
Sales and disposals 0 38,179 - 38,179
Depreciation -57,953 -144,288 - -202,241
Exchange rate differences 9,648 47,770 - 57,418
Closing balance, 31 Aug 2013 -665,176 -1,725,996 - -2,391,172
Reported value, 31 Aug 2012 1,831,315 1,025,577 159,902 3,016,794
Reported value, 31 Aug 2013 1,841,298 928,878 160,858 2,931,034
2013-08-31 2012-08-31
Reported value of land for properties in Sweden 345,457 268,993
Reported value of slopes 254,667 249,776
PARENT COMPANY
Buildings, land and land
improvementsMachinery and
EquipementConstruction
in progress Total
Accumulated acquisition cost
Opening balance, 1 Sept 2011 1,203,564 1,565,019 105,522 2,874,105
New acquisitions 11,373 62,563 42,840 116,776
Sales and disposals -760 -18,980 - -19,740
Reclassifications, etc. 5,914 30,421 -36,335 0
Closing balance, 31 Aug 2012 1,220,091 1,639,023 112,027 2,971,141
Opening balance, 1 Sept 2012 1,220,091 1,639,023 112,027 2,971,141
New acquisitions 11,885 21,331 47,645 80,861
Sales and disposals -5,352 -28,686 - -34,038
Reclassifications, etc. 14,648 18,495 -37,264 -4,121
Closing balance, 31 Aug 2013 1,241,272 1,650,163 122,408 3,013,843
Accumulated depreciation and
impairment
Opening balance, 1 Sept 2011 -356,620 -908,647 - -1,265,267
Sales and disposals 283 17,767 -1,878 16,174
Depreciation -27,677 -89,589 - -117,268
Closing balance, 31 Aug 2012 -384,014 -980,469 -1,878 -1,366,361
Opening balance, 1 Sept 2012 -384,014 -980,469 -1,878 -1,366,361
Sales and disposals 0 26,532 -1,838 24,694
Depreciation -27,019 -86,225 - -113,244
Closing balance, 31 Aug 2013 -411,033 -1,040,162 -3,716 -1,454,911
Reported value, 31 Aug 2012 836,077 658,554 110,149 1,604,780
Reported value, 31 Aug 2013 830,239 610,001 118,692 1,558,932
2013-08-31 2012-08-31
Reported value of land for properties in Sweden 167,755 162,498
Reported value of slopes 207,516 205,710
NOTES 75
NOTE 16 PARTICIPATIONS IN ASSOCIATED COMPANIES
GROUP 2013-08-31 2012-08-31
Opening balance 275,780 181,882
Acquisitions 1,340 111,902
Disposals -5,875 -9,000
Capital contribution 6,000 -
Dividends -474 -781
Reclassifications - 517
Exchange rate differences -7,114 -529
Share of income -25,274 -8,211
Closing balance 244,383 275,780
PARENT COMPANY 2013-08-31 2012-08-31
Opening balance 7,826 7,826
Acquisitions 800 -
Reclassification 42 -
Closing balance 8,668 7,826
SPECIFICATION OF THE GROUP’S AND THE PARENT COMPANY’S HOLDINGS OF PARTICIPATIONS IN ASSOCIATED COMPANIES 2013-08-31
ASSOCIATED COMPANY/ CORPORATE IDENTITY NUMBER /
REGISTERED OFFICES Income Net income Assets Liabilities EquityParticipating
interest %Value of Group’s
share of equityReported value in Parent Company
Lima Transtrand Fastighets AB, 556258-6817, Sälen 19 399 6 123 152 767 110 591 42 176 45 22 742 -
Åreföretagarna i Åre AB, 556171-5961, Åre 11 047 -612 8 627 6 847 1 780 49 504 1 970
Fjällvärme i Lindvallen AB, 556536-1895, Sälen 9 572 108 82 190 59 383 22 807 50 10 687 -
Åre 2007 AB, 556605-8458, Åre 0 0 39 155 38 489 666 15 100 15
World Cup Åre AB, 556749-7119, Åre 8 915 -122 449 170 279 50 1 363 130
Ski Invest Sälen AB, 556755-1022, Sälen 112 915 -10 716 600 412 474 442 125 970 50 79 864 -
Entréhuset i Sälen AB, 556756-7135, Sälen 2 316 1 117 20 540 13 293 7 247 49 7 543 5 711
Staven Naeringseiendom AS, NO988357014, Hemsedal 2 686 -1 761 33 731 44 936 -11 205 49 -5 335 -
Skitorget AS, NO994110527, Trysil 1 941 814 9 989 814 9 175 50 8 550 -
Mountain Resort Trysil AS, NO996284115, Trysil* 34 332 -19 499 511 413 459 697 51 716 50 97 336 -
Knettsetra AS, NO971219807, Trysil 14 244 661 3 448 2 356 1 092 49 1 691 -
Trysilguidene AS, NO965147659, Trysil 23 883 3 068 27 785 15 423 12 362 35 1 689 -
HA aktiviteter AB, 556730-0065, Jämtlands län 147 35 1 222 966 256 42 42 42
Fjällmacken i Lindvallen AB, 556662-2956, Sälen 2 384 381 18 635 10 630 8 005 29 1 397 -
Skiab Invest AB, 556848-5220, Sälen 2 103 226 77 261 60 045 17 216 50 8 525 -
Trysilsuiterna AS, NO991276068/ Trysil - -5 1 986 851 1 135 50 -144 -
Hemsedal Eiendomselskap AS, NO911713578/ Hemsedal - - - -1 081 1 081 50 540 -
Tegefjäll Linbane AB, 556659-6861 - - 7 961 3 961 4 000 20 800 800
Trysil Hotellutvikling AS, NO987054409 / Trysil - -13 636 260 273 198 025 62 248 50 6 489 -
244 383 8 668
* No newer values have been published
SPECIFICATION OF THE GROUP’S AND THE PARENT COMPANY’S HOLDINGS OF PARTICIPATIONS IN ASSOCIATED COMPANIES 2012-08-31
ASSOCIATED COMPANY/ CORPORATE IDENTITY NUMBER /
REGISTERED OFFICES Income Net income Assets Liabilities EquityParticipating
interest %Value of Group’s
share of equityReported value in Parent Company
Lima Transtrand Fastighets AB, 556258-6817, Sälen 19 399 6 123 152 767 110 591 42 176 45 21 031 -
Åreföretagarna i Åre AB, 556171-5961, Åre 11 047 -612 8 627 6 847 1 780 49 907 1 970
Fjällvärme i Lindvallen AB, 556536-1895, Sälen 9 572 108 82 190 59 383 22 807 50 11 403 -
Åre 2007 AB, 556605-8458, Åre 0 0 39 155 38 489 666 15 100 15
World Cup Åre AB, 556749-7119, Åre 8 915 -122 449 170 279 50 1 160 130
Ski Invest Sälen AB, 556755-1022, Sälen 114 158 -14 178 617 570 491 717 125 853 50 78 043 -
Entréhuset i Sälen AB, 556756-7135, Sälen 2 316 1 117 20 540 13 293 7 247 49 7 341 5 711
Staven Naeringseiendom AS, NO988357014, Hemsedal 2 686 -1 761 33 731 44 936 -11 205 49 -5 121 -
Fageråsen Invest AS, NO99037410, Trysil 1 894 -2 705 99 048 87 848 11 200 49 5 875 -
Skitorget AS, NO994110527, Trysil 1 941 814 9 989 801 9 188 50 8 824 -
Mountain Resort Trysil AS, NO996284115, Trysil 34 332 -19 499 511 413 459 697 51 716 50 103 527 -
Knettsetra AS, NO971219807, Trysil 14 244 661 3 448 2 356 1 092 50 1 302 -
Trysilguidene AS, NO965147659, Trysil 23 883 3 068 27 785 15 423 12 362 35 1 668 -
HA aktiviteter AB, 556730-0065, Jämtlands län 147 35 1 222 966 256 42 73 -
Fjällmacken i Lindvallen AB, 556662-2956, Sälen 2 384 381 18 635 10 630 8 005 29 1 234 -
Skiab Invest AB, 556848-5220, Sälen 2 103 226 77 261 60 045 17 216 50 8 607 -
Trysilsuiterna, NO991276068/ Trysil - -5 1 986 851 1 135 50 515 -
Trysil Hotellutvikling AS, NO987054409, Trysil - -13 636 260 273 198 025 62 248 50 29 291 -
275 780 7 826
The participating interest in capital is referred to, which corresponds to the share of votes for the total number of shares. Where the holdings are less than 20% but the participation is, nonetheless, classified as
an associated company, this is motivated on the basis of a significant influence over the company, via seats on the associated company’s Board.
Hotel operations Radisson Blu in Trysil, included in the associated company Trysil Hotelutvikling, has for some years been characterised by losses, for which reason an impairment test has been prepared relating
to the assets. The test is based on the five-year plan that the Company’s new management has made, followed by weak growth during the subsequent 30 years. A discount rate of 5.6% after tax has been used.
The recoverable amount of assets was thereby estimated to MSEK 175. Since the recoverable amount is close to the book value, a sensitivity analysis was prepared which states that revenue could be 3.5% lower
and the discount rate 0.15% higher than forecasted. For changes larger than these, impairment could be relevant.
NOTE 17 OTHER INVESTMENTS HELD AS FIXED ASSETS
GROUP 2013-08-31 2012-08-31
Available-for-sale financial assets
Opening acquisition cost 90 839 54 848
Acquisitions 3 221 3 013
Disposals -9 770 -4 430
Reclassifications 453 37 456
Exchange rate differences -107 -48
Closing balance 84 636 90 839
PARENT COMPANY 2013-08-31 2012-08-31
Available-for-sale financial assets
Opening acquisition cost 10 513 10 513
Acquisitions 2 500 -
Reclassifications -42 -
Closing balance 12 971 10 513
Other investments held as fixed assets are essentially comprised of shares in tenant-owners’ associations
and shares in smaller companies, as well as the acquisition cost of interest deposits in Fjällförsäkringar AB.
The items are reported at acquisition cost, as a reliable fair value cannot be determined.
GROUP 2013-08-31 2012-08-31
Shares in tenant-owners’ associations 37 113 39 566
Other long-term securities 32 690 39 896
Shares and participations 14 833 11 377
Closing balance 84 636 90 839
PARENT COMPANY 2013-08-31 2012-08-31
Shares in tenant-owners’ associations 1 061 1 061
Shares and participations 11 910 9 452
Closing balance 12 971 10 513
NOTES76
NOTE 22 EQUITY
GROUP 2013-08-31 2012-08-31
Translation reserve
Opening translation reserve -2,630 10,233
Exchange rate differences for the year -24,793 -12,863
Closing translation reserve -27,423 -2,630
GROUP 2013-08-31 2012-08-31
Hedging reserve
Opening hedging reserve -16,471 -
Measurement of hedging reserve 13,830 -22,557
Deferred tax -3,647 6,086
Closing hedging reserve -6,288 -16,471
PARENT COMPANY 2013-08-31 2012-08-31
Hedging reserve
Opening hedging reserve -8,066 0
Measurement of hedging reserve 11,948 -10,944
Deferred tax -3,097 2,878
Closing hedging reserve 785 -8,066
GROUP
Other contributed capital
This item refers to equity contributed by shareholders. The item also includes share premium reserves
transferred to statutory reserves per 31 August 2006. Future provisions to the share premium
reserve from 1 September 2006 onward will also be reported as other contributed capital.
Translation reserve
The translation reserve includes all exchange rate differences arising upon the translation of foreign
subsidiaries preparing their financial statements in a currency other than the Group’s presentation
currency. The Parent Company and Group present their financial statements in SEK. In accordance
with IFRS 1, SkiStar has chosen to value the translation reserve at TSEK 0 as per 1 September 2004.
Hedging reserve
During the financial year, interest has been hedged through interest rate derivatives of MSEK 600
and MNOK 200, with maturities of 5 and 10 years. Changes in value of interest rate derivatives are
reported in Comprehensive income. Since July 2013, DKK cash flows have been hedged against the
forecasted net flow of DKK. Currency hedges are reported in SkiStar AB and SkiStar Norge AS.
Profit brought forward and net income for the year
Profit brought forward includes profit earned in the Parent Company, subsidiaries and associated
companies after acquisitions.
The provisions previously made to the statutory reserve, excluding the transferred share premium
reserves, are included in profit brought forward.
Dividends
After balance sheet date, the Board proposed a dividend of SEK 2.50 per share, totalling SEK
97,970,070, to be distributed to the shareholders in the Parent Company. This dividend proposal
will be presented for adoption to the Annual General Meeting on 14 December 2013. In 2012, the
dividend was SEK 2.50 per share.
PARENT COMPANY
Restricted equity
Restricted funds may not be reduced via the distribution of dividends.
Statutory reserve
The purpose of the statutory reserve is to retain a portion of the net profits which has not been
utilised to cover accumulated losses. The requirement for transfer to the statutory reserve has been
abolished in the Swedish Companies Act as from 1 January 2006.
Non-restricted equity
Share premium reserve
When shares are issued at a premium, that is, when the amount paid for the shares exceeds their
market price, the portion corresponding to the amount received in excess of the quotient value of
the share is transferred to the share premium reserve. From 1 January 2006, the share premium
reserve is classified as non-restricted equity.
Hedging reserve
During the financial year, interest has been hedged through interest rate derivatives of MSEK 500, with
maturities of 5 and 10 years. Changes in value of interest rate derivatives are reported in Comprehen-
sive income. Since July 2013, DKK cash flows have been hedged against the forecasted net flow of DKK.
Profit brought forward
Comprises the previous year’s non-restricted equity, after distribution of dividends. Constitutes,
together with net income for the year, total non-restricted equity – that is, the amount available to the
shareholders.
NUMBER OF SHARES 2013-08-31 2012-08-31
Number of outstanding Class A shares at the beginning of the period 1,824,000 1,824,000
Number of outstanding Class B shares at the beginning of the period 37,364,028 37,364,028
Number of outstanding shares at the end of the period 39,188,028 39,188,028
The overall goal is for the value of shareholders’ capital to grow. SkiStar shall have a strong financial
foundation in order to enable an offensive strategy, at the same time balancing operating risk. The goal
is an equity ratio above 35%. At the current interest rate level, the return on equity would amount to
15% and the return on capital employed to 10%. These targets are established on the basis of three
month treasury bills for which the average interest rate was 3.1% during the financial year 2012/13.
The operating margin is to exceed 22% in the long term. SkiStar’s dividend policy means that annual
dividends are to be equivalent to a minimum of 50% of profit after tax. The policy is determined on
the basis that SkiStar has a strong financial foundation, in combination with a strong cash flow, as well
as that the investments are largely financeable through own resources. SkiStar has a large volume
of short-term loans and covenants which means that the loan conditions may be renegotiated if
the equity ratio is lower than 30%, and if the interest coverage ratio does not exceed 4.0 times. The
quotient value per share as of 31 August was SEK 0.5 (0.5).
NOTE 20 OTHER CURRENT RECEIVABLES
GROUP 2013-08-31 2012-08-31
VAT recoverable 6,777 7,508
Current loans receivable 38,206 25,892
Other 34,263 36,733
Closing balance 79,246 70,133
PARENT COMPANY 2013-08-31 2012-08-31
VAT recoverable 4,378 2,446
Current loans receivable 21,706 11,281
Other 14,502 29,650
Closing balance 40,586 43,377
No other current receivables are due for payment. Of Other shown above, TSEK 1,116 are com-
prised of receivables on derivatives
NOTE 21 PREPAID EXPENSES AND ACCRUED INCOME
GROUP 2013-08-31 2012-08-31
Prepaid rental charges and leasing fees 20,506 5,933
Prepaid insurance 2,495 964
Accrued interest income 1,644 1,142
Other items 18,691 21,712
Closing balance 43,336 29,751
PARENT COMPANY 2013-08-31 2012-08-31
Prepaid rental charges and leasing fees 15,654 4,422
Prepaid insurance 1,034 964
Accrued interest income 1,093 488
Other items 22,774 13,093
Closing balance 40,555 18,967
NOTE 19 ACCOUNTS RECEIVABLE
Accounts receivable are reported with consideration of established and expected bad debt losses
during the year amounting to TSEK 648 (1,451) in the Group, of which established bad debt losses
amounted to TSEK 607 (1,404). In the Parent Company, established and expected bad debt losses
amounted to TSEK 265 (611), of which established bad debt losses amounted to TSEK 224 (1,061).
During the year, the Group has recovered previously reported and expected bad debt losses of TSEK
314 (405). The Group’s provisions for expected bad debt losses have decreased during the financial
year from TSEK 5,068 by TSEK 4,174 to TSEK 912. Accounts receivable with related parties amounted
to TSEK 3 (53,937) in the Group. For further information regarding related party transactions, see
Note 36.
AGE ANALYSIS OF OVERDUE BUT NOT IMPAIRED ACCOUNTS RECEIVABLE
GROUP
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
30-90 days 6,500 2,363
90-180 days 2,358 13,195
Closing balance 8,858 15,558
PARENT COMPANY
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
30-90 days 5,302 466
90-180 days 1,261 208
Closing balance 6,563 674
NOTE 18 OTHER NON-CURRENT RECEIVABLES
GROUP 2013-08-31 2012-08-31
Opening acquisition cost 97,555 122,325
Additional receivables 47,509 7,771
Settlement of receivables -2,921 -11,845
Reclassifications to investments held as fixed assets -495 -37,973
Other reclassifications 0 18,261
Exchange rate differences -2,778 -984
Closing balance 138,870 97,555
PARENT COMPANY 2013-08-31 2012-08-31
Opening acquisition cost 98,595 53,590
Additional receivables 2,778 57,729
Settlement of receivables -13,314 -12,724
Closing balance 88,059 98,595
GROUP 2013-08-31 2012-08-31
Receivables from associated companies 82,017 43,079
Other long term interest-bearing 51,853 52,172
Other long term non-interest-bearing 5,000 2,304
Closing balance 138,870 97,555
PARENT COMPANY 2013-08-31 2012-08-31
Deferred tax assets 43,684 51,898
Other long term interest-bearing 39,605 41,819
Other long term non-interest-bearing 4,770 4,878
Closing balance 88,059 98,595
NOTES 77
NOTE 23 UNTAXED RESERVES
The Parent Company’s accelerated depreciation was fully dissolved in August 2012 and impacted the
Parent Company’s income positively in an amount of MSEK 301.
NOTE 24 CONVERTIBLE DEBENTURE
The 2007/12 debenture (employee convertibles) was issued in September 2007 in a total amount
of MSEK 30 and was fully subscribed to by the Group’s employees. The convertible period ended in
August 2012, without any conversion. The loans were repaid in September 2012.
NOTE 25 LIABILITIES TO CREDIT INSTITUTIONS
GROUP 2013-08-31 2012-08-31
Due for payment within one year from balance sheet date 666,171 703,682
Due for payment 1-5 years from balance sheet date 1,435,635 1,549,664
Due for payment more than five years from balance sheet date 0 21,947
Closing balance 2,101,806 2,275,293
Granted bank overdraft facilities amount to 646,150 1,231,991
Utilised portion of overdraft facilities 452,841 1,062,466
PARENT COMPANY 2013-08-31 2012-08-31
Due for payment within one year from balance sheet date 340,000 144,997
Due for payment 1-5 years from balance sheet date 730,502 1,125,597
Due for payment more than five years from balance sheet date - -
Closing balance 1,070,502 1,270,594
Granted bank overdraft facilities amount to 430,000 830,000
Utilised portion of overdraft facilities 330,502 689,347
For further information on loan structure, commitment periods, etc., refer to Note 32.
NOTE 26 PENSION PROVISIONS
GROUP 2013-08-31 2012-08-31
Defined benefit plans 1,632 1,930
Other pension commitments 3,975 1,002
Closing value 5,607 2,932
PARENT COMPANY 2013-08-31 2012-08-31
Other pension commitments 3,492 398
Closing value 3,492 398
Only in the Norwegian operations, a small portion of the employees are covered by pension plans
reported as defined benefit plans. Provisions for defined benefit pensions amount to MSEK 19.9
(23.3), while the fair value of plan assets totals MSEK 18.3 (21.2). The net value of these items is
reported in the statement of financial position for the Group and amounts to MSEK 1.6 (2.1). The
disclosure regarding defined benefit plans has been limited, as this item is deemed to be insignifi-
cant. Pension commitments for office workers in Sweden are safeguarded on the basis of pension
insurance with Alecta and on the basis of individual pension solutions for employees whose sala-
ries exceed 10 base income amounts. According to statement UFR 3 from the Swedish Financial
Accounting Standards Council’s Emerging Issues Task Force, this constitutes a multi-employer
defined benefit plan. For the financial years 2010/11, 2011/12 and 2012/13, the Company has not
had access to information that would enable reporting of this plan as a defined benefit plan. The
ITP pension plan, safeguarded on the basis of insurance with Alecta is, therefore, reported as a
defined contribution plan, entailing that obligations are recognised as costs in the statement of
comprehensive income for the Group as they arise. The expenses for the year for pension insu-
rance in Alecta amount to MSEK 6.2 (6.6). Total contributions for the year for pension insurance
amounted to MSEK 20.9 (17.3). Alecta’s surplus can be allocated to the policy holder and/or to the
insured. Per 31 August, Alecta’s surplus, in the form of the collective funding ratio, amounted to
145% (125). The collective funding ratio is the market value of Alecta’s assets as a percentage of
insurance commitments, calculated according to Alecta’s actuarial calculation assumptions, which
do not correspond to IAS 19.
NOTE 27 RECEIVABLES AND LIABILITIES – GROUP COMPANIES
RECEIVABLES FROM GROUP COMPANIES 2013-08-31 2012-08-31
Sälens Högfjällshotell AB 70,116 68,481
Tandådalens Fjällhotell Service AB 84,772 84,743
SkiStar Norge AS 10,745 -
Hammarbybacken AB 1,937 3,147
Vemdalen Logi AB 32,688 32,188
Trysilfjellet Alpin AS - 1
Timmerbyn Lindvallen AB - 3,622
Fjällinvest AB 130,967 289,338
Utgående värde 331,225 481,520
LIABILITIES TO GROUP COMPANIES 2013-08-31 2012-08-31
Sälens Högfjällshotell AB - 3
Åre Invest AB 1,361 1,359
Vemdalens Sportaffärer & Skiduthyrning AB 14,718 5,093
Vintertorget i Sälen KB 2,208 2,208
Fjällförsäkringar AB 16,023 -
Skistar Fastighets AB 2,627 3,284
Hundfjället Servicecenter AB 1,743 1,743
Hundfjället Sport AB - 5,432
Hundfjället Centrum AB 5,034 5,034
Vemdalen Logi AB 10 10
Bostadsrätter i Åre AB 10 10
43,734 24,176
Net receivables/liabilities 287,491 457,344
The majority of the receivables from and liabilities to Group companies relate to the Group account.
NOTE 28 OTHER PROVISIONS
GROUP 2013-08-31 2012-08-31
Electricity certificates 708 554
Closing value 708 554
PARENT COMPANY 2013-08-31 2012-08-31
Electricity certificates 708 554
Closing value 708 554
GROUP 2013-08-31 2012-08-31
Opening value 554 958
Purchases 1,452 100
Cancellations -1,298 -504
Closing value 708 554
PARENT COMPANY 2013-08-31 2012-08-31
Opening value 554 958
Purchases 1,452 100
Cancellations -1,298 -504
Closing value 708 554
SkiStar AB is registered with the Swedish Energy Agency as of January 2009 as a power-intensive
industry. As a result of this, SkiStar AB is obliged to meet quota requirements and is required to present
a quota obligation declaration. For each MWh of quota obliged electric power consumed during 2012,
a total of 0.179 electricity certificates are annulled. Thanks to the registration as a power-intensive
industry, expenses for electricity decreased by MSEK 1 during 2012.
NOTES78
NOTE 29 ACCRUED EXPENSES AND DEFERRED INCOME
GROUP 2013-08-31 2012-08-31
Accrued salary expenses and social security contributions 54,508 38,578
Accrued financial expenses 15,824 18,765
Accrued property expenses 6,134 7,331
Other items 23,062 23,807
Closing value 99,528 88,481
PARENT COMPANY 2013-08-31 2012-08-31
Accrued salary expenses and social security contributions 37,787 32,833
Accrued financial expenses 6,453 8,611
Accrued property expenses 3,548 3,533
Other items 10,505 7,726
Closing value 58,293 52,703
NOTE 30 PLEDGED ASSETS AND CONTINGENT LIABILITIES
PLEDGED ASSETS
GROUP 2013-08-31 2012-08-31
Property mortgages 799,313 820,854
Assets, SkiStar Norwegian Group 722,018 832,695
Closing value 1,521,331 1,653,549
of which pledged for own liabilities 1,521,331 1,582,305
PARENT COMPANY 2013-08-31 2012-08-31
Property mortgages 537,346 650,167
Closing value 537,346 650,167
Of which pledged for own liabilities 537,346 650,167
CONTINGENT LIABILITIES
GROUP 2013-08-31 2012-08-31
Contributions with conditional repayment liability 6,883 2,095
Guarantees 410,194 374,452
Other contingent liabilities 8,200 8,200
Closing value 425,277 384,747
PARENT COMPANY 2013-08-31 2012-08-31
Contributions with conditional repayment liability 3,723 2,095
Guarantees for Group companies 396,908 759,469
Other guarantees 370,306 141,325
Other contingent liabilities 8,200 8,200
Closing value 779,137 911,089
NOTE 31 CASH FLOW STATEMENT
KONCERNEN MODERBOLAGET
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Interest paid and dividends received
Dividends received 36,365
Interest received 4,868 5,926 3,328 1,534
Interest paid -49,592 -43,060 -26,472 -24,101
Adjustments for non-cash items
Less share of income from associated companies 25,277 8,211 - -
Dividends from subsidiaries - - 612 -
Depreciation/amortisation and impairment
of assets
218,611 222,485 124,690 126,818
Unrealised exchange rate differences -538 -809
Capital gains from the sale of fixed assets -39,543 -7,001 -22,597 -
Pension provisions 2,792 77 3,094 191
Other provisions 153 -404 154 -404
206,752 222,559 105,953 126,605
Acquisition of subsidiaries and other business units
Acquired assets and liabilities:
Tangible fixed assets 50,923 - - -
Operating receivables 4,153 - - -
Cash and cash equivalents 294 - - -
Total assets 55,370 - - -
Purchase consideration 0 - - -
Less cash and cash equivalents in acquired
operations
-294 - - -
Effect on cash and cash equivalents -294 - - -
Borrowings 43,375 - - -
Operating liabilities 982 - - -
Total liabilities 44,357 - - -
Sale of subsidiaries and other business units
Divested assets and liabilities
Tangible fixed assets -5,875 - - -
Total capital gain, liabilities and provisions -5,875 - - -
Cash and cash equivalents
Following components are included in cash and
cash equivalents:
Current investments
Cash and bank balances 26,277 41,131 2,859 3,409
26,277 41,131 2,859 3,409
ACQUISITION OF ADDITIONAL SHARES IN FAGERÅSEN INVEST AS
The acquired company's net assets at the acquisition date, TSEK
2012-09-01
-2013-08-31
Tangible fixed assets 50,923
Inventories 4,090
Accounts receivable and other receivables 63
Cash and cash equivalents 294
Interest-bearing liabilities 43,375
Accounts payable and other operating liabilities 982
Net identifiable assets and liabilities 11,013
Holdings without controlling influences 1,652
Fair value of previously owned shares 5,985
During the year, the Group acquired an additional 36% of Fageråsen Invest AS, amounting to a total of
85%. The Company has in the report contributed to sales and income with TSEK 1,890 and TSEK -833,
respectively. If the Company had been owned the whole year it would have contributed to sales and
income with TSEK 1,890 and TSEK -855, respectively.
NOTES 79
FINANCIAL RISKS
Financial risk not only entails the risk of losses, but also the potential for gains. SkiStar’s policy for the
handling of financial risk is, amongst other things, that there shall be no surplus liquidity, rather, to maximise
return, short-term credits are to be amortised when major liquidity flows arise. The Finance Policy is
adopted by the Board. The CFO is responsible for ensuring compliance with this policy. Financing activities
within the Company are centralised under the CFO.
CURRENCY RISKS
Currency risk refers to the risk that changes in currency exchange rates impact the income statement,
balance sheet and/or cash flow statement of the Group. Currency risks include both translation and
transaction risks.
SkiStar conducts operations in Norway via the subsidiary, SkiStar Norge AS, and its subsidiaries and
is exposed to translation risks through these operations. SkiStar’s policy is to not hedge currency risks.
Of SkiStar’s total income after taxes, approximately 12% (8) is attributable to Norwegian operations. A
weaker NOK compared with SEK results in the destinations Hemsedal and Trysil being consolidated in
the SkiStar Group at a lower profit level compared to a situation in which the NOK is stronger in rela-
tion to the SEK. A sensitivity analysis shows that a change in the exchange rate NOK/SEK by +/- 10%
influences income by MSEK +/- 2 and equity by MSEK +/- 2. An equalising factor is that it is less expensive
for Swedish guests to visit Hemsedal and Trysil when the NOK is weaker. A total of 60% of the guests in
Hemsedal come from outside Norway and 24% of these are Swedish. In Trysil, the proportion of foreign
guests is 78%, of whom 28% are Swedish. The income statements and balance sheets of foreign subsidia-
ries are translated according to the current method whereby assets and liabilities are translated at the
closing rate of exchange and all items in the income statement are translated at the average exchange rate
for the period. Exchange rate differences are reported directly in other comprehensive income.
To reduce currency risks, assets in foreign subsidiaries are financed only in local currency. Purchases
of lifts, grooming machines and ski rental equipment, in particular, are partly financed in EUR and USD,
and are hedged if it is deemed beneficial to the Company. In recent years, only a small number of minor
purchases have been made, for which reason the Company resolved not to hedge the purchases. During
the financial year 2012/13, goods and services were acquired by the Group for a total of MEUR 12.8 (5.6).
CREDIT RISK
The risk that SkiStar’s customers will not fulfil their obligations constitutes a customer credit risk. In
light of the fact that a large portion of sales is settled in cash or through advanced payments and that the
vast majority of accounts receivable items refer to small amounts, the customer credit risk is assessed to
be low.
INTEREST AND LIQUIDITY RISK
SkiStar’s Financial Policy stipulates that, primarily, borrowing can only take place on the basis of short, fixed-
interest terms of a maximum of three months. With a strong financial foundation, in which the equity ratio
is 38% (36), and a strong cash flow, SkiStar is able to take advantage of the effect of the lower interest
rates on shorter interest periods than on long interest periods. When, according to the Company, the mar-
ket situation and interest rates are reasonable, borrowing at longer fixed-interest rates can be undertaken.
Such decisions are made by the finance team and the Board of Directors. Net interest-bearing liabilities
as per year-end amounted to MSEK 2,072 (2,076). Net interest income amounted to MSEK 59.1 (50.3)
during the financial year and average interest expenses to 3.1% (2.9). As of balance date, interest-bearing
liabilities amounted to MSEK 2,102 (2,275). If the interest rate level were to increase by one percentage
point, SkiStar’s interest expenses would increase by approximately MSEK 21 (14), the overall effect of
which would largely influence the net financial income/expense in net income for the year and with that,
equity. Just over half of SkiStar’s loan volume is comprised of short-term loans, in order to offset the
strong fluctuations in the cash flow over the year. SkiStar has covenants allowing loan terms and conditions
to be renegotiated if the equity ratio falls below 30% and if the interest coverage ratio does not exceed
4.0 times. SkiStar’s liquidity per balance sheet date amounted to MSEK 219 (211) , of which MSEK 193
(170) comprised unutilised bank overdraft facilities. The Company has a strong financial position, which
implies that, when necessary, the possibility of raising new loans on competitive terms is very positive.
In accordance with the disclosure requirements in IFRS 7, the estimation of the financial instruments at fair
value in the balance sheet is shown below. This is done by dividing the estimates into 3 levels:
Level 1: Fair value is determined according to prices quoted on an active market for similar instruments.
Level 2: Fair value is determined either directly (such as price) or indirectly (derived from prices)
observable market inputs other than Level 1 inputs.
Level 3: Fair value is determined based on inputs which are not observable on the market.
INTEREST RATE SWAPS
To hedge the risk of highly probable, forecasted interest payments on borrowings at variable interest
rates, swaps are utilised whereby the Company receives a variable rate and pays a fixed rate. The
interest swaps are valued at fair value in the statement of financial position. The interest coupon portion is
reported in net income for the year as a part of interest expenses. Unrealised changes in the fair value of
LOAN STRUCTURE
SWEDEN
Nominal
amount in
original
currency
Reported value,
TSEK Maturity
Fair value of
loan, TSEK
Overdraft facilities, variable interest 330,502 330,502
Ongoing/
framework
agreement 330,502
accrued interest 1,195 1,195
Bank loan, variable interest 250,000 250,000 2014-06-28 250,000
accrued interest 997 997
Bank loan, variable interest 90,000 90,000 2014-01-31 90,000
accrued interest 170 170
Bank loan, variable interest 400,000 400,000 2016-08-31 400,000
accrued interest 24 24
Bank loan, variable interest 625 625 2013-09-30 625
accrued interest 2 2
Bank loan, variable interest 280,000 280,000 2014-06-28 280,000
accrued interest 1,095 1,095
NORWAY
Nominal
amount in
original
currency
Reported value,
TSEK Maturity
Fair value of
loan, TSEK
Overdraft facilities, variable interest 113,198 122,339
Ongoing/
framework
agreement 122,339
accrued interest 716 716 716
Bank loan, variable interest 363,750 393,123 2016-08-31 393,123
accrued interest 3,053 3,053 3,053
Bank loan, variable interest 150,000 162,113 2016-08-31 162,113
accrued interest 1,313 1,313 1,313
Bank loan, variable interest 27,143 29,335 2014-05-15 29,335
accrued interest 0
Bank loan, variable interest 40,500 43,770 2014-05-15 43,770
accrued interest 118 118
Total loans 2,101,806
Total accrued interest on bank
loans8,683
Other financial liabilities are comprised of, other than the fair value of interest swaps, MSEK 7 (23) and
currency futures of MSEK 2 (0), of liabilities with a maturity within one year.
the interest swaps are reported in other comprehensive income and are included as part of the hedging
reserve until the hedged item affects net income for the year and as long as the criteria for hedge accoun-
ting and effectiveness are met. The gain or loss relating to the ineffective portion of the unrealised changes
in value of interest swaps is reported in net income for the year. As of 31 August 2013, no ineffective
portion exists. As of 31 August 2013, the accumulated effect on these cash flow secured interest swaps is
reported as MSEK 5 in equity. The Company has interest rate swaps amounting to MSEK 600 and MNOK
200 with durations of 3, 5 and 10 years. These are valued in the financial statements, based on observable
market data, in accordance with Level 2 of the fair value hierarchy in IFRS 7.
CURRENCY FORWARDS
A currency derivative is employed to hedge the risk of highly probable, forecasted currency flows from
the revenues pertaining to the DKK payments from Danish customers. These currency derivatives are
matched with underlying liquidity forecasts for the net cash flow in the respective currencies. Under the
condition that the effectiveness of these securities can be assured, the change in market value for each
security transaction is reported in other comprehensive income until it is rereported to the income state-
ment as a revenue/cost. The profit or loss attributable to the ineffective portion of unrealised changes in
the value of the currency forward is reported in net income for the year. As of 31 August 2013, the accu-
mulated currency effect on these cash flow secured currency derivatives is reported as MSEK 1 in equity.
These are valued in the financial statements, based on observable market data, in accordance with level 2
of the fair value hierarchy in IFRS 7.
FAIR VALUE
Measurement of fair value is carried out when reliable and observable market data is available on the
balance sheet date. For this reason, interest swaps and currency forward are valued at fair value. Other
long-term holdings are essentially comprised of shares in tenant-owners’ associations and shares in smaller
companies, as well as the acquisition cost of interest deposits in Fjällförsäkringar AB. The items are repor-
ted at acquisition cost, as a reliable fair value cannot be determined. Other reported results from financial
assets and liabilities can be said to conform to fair value as all funding is bound to short-term interest rates,
either at current interest or fixed for a maximum of three months.
Some of the loans classified as short-term loans will be renegotiated during the coming year without
being repaid and, thus, they are not included as a cash flow effect for subsequent years, other than as
part of the interest calculation.
NOTE 32 FINANCIAL RISKS AND FINANCIAL POLICIES
NOTES80
NOTE 33 INCOME FROM SECURITIES ACCOUNTED FOR AS FIXED ASSETS
GROUP
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Revaluation - 371
Impairment -120 -150
Dividend - 1,018
Capital gain 851 1,694
Capital loss -504 -
227 2,933
PARENT COMPANY
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Impairment - -150
Dividend 384 158,557
384 -93
The year’s capital gains refer to unrealised losses on shares in Fjällförsäkringar AB and realised gains
from sales of shares in Fjällinvest. An indirect subsidiary was liquidated during the year, which resulted
in a write-down of TSEK 120.
NOTE 34 INTEREST INCOME AND SIMILAR PROFIT/LOSS ITEMS
GROUP
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Bank balances 1,998 2,602
Non-current receivables 4,330 4,174
Accounts receivables – trade 31 24
Clearing account for taxes and charges 988 268
Exchange gains 3,097 9,301
10,444 16,369
PARENT COMPANY
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Bank balance 2,966 133
Non-current receivables 1,369 1,701
Accounts receivable – trade 28 24
Clearing account for taxes and charges 608 164
Exchange gains 2,880 8,580
7,851 10,602
All items derive from financial items at acquisition cost, except items arising from interest swaps
(MSEK 0).
NOTE 35 INTEREST EXPENSES AND SIMILAR PROFIT/LOSS ITEMS
GROUP
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Liabilities to credit institutions 65,411 60,633
Subordinated debenture 60 873
Accounts payable- trade 132 85
Clearing account for taxes and charges 844 234
Currency exchange losses 3,359 8,225
69,806 70,050
PARENT COMPANY
2012-09-01
-2013-08-31
2011-09-01
-2012-08-31
Liabilities to credit institutions 32,922 31,803
Subordinated debenture 60 873
Accounts payable- trade 49 35
Clearing account for taxes and charges - 1
Currency exchange losses 3,039 7,566
36,070 40,278
All items derive from financial items at acquisition cost, except items arising from interest swaps
(MSEK 4.3).
CONT. NOTE 32 FINANCIAL RISKS AND FINANCIAL POLICIES
APPRECIATED FAIR VALUE OF FINANCIAL INSTRUMENTS, MSEK
2013 2012
Interest swaps 7 23
Forward exchange agreements 2 -
The entries can be found as liabilities in the balance sheet.
The nominal value of the interest swaps was, as of 31 August 2013, MSEK 838 (838) and the nomi-
nal value of the currency futures was MSEK 101 (0).
FINANCIAL ASSETS BY VALUATION CATEGORY, MSEK
2013
Available-for-
sale financial
assets
Loans and
accounts
receivable
Derivatives
used for
hedge
reporting
Total book
value Fair value
Financial investments 1) 141 - - 141 141
Receivables from associated
companies- 82 - 82 82
Derivatives - - 1 1 1
Accounts receivable - trade - 31 - 31 31
Other current receivables - 79 - 79 79
Liquid assets - 26 - 26 26
Total financial assets 141 218 1 360 360
1) Of the financial investments, 85 (91) are primarily investments in tenant-owners’ associations and
other minor stock holdings. These have been appreciated in accordance with Level 3 of the fair value
hierarchy in IFRS 7.
FINANCIAL ASSETS BY VALUATION CATEGORY, MSEK
2012
Available-for-
sale financial
assets
Loans and
accounts
receivable
Derivatives
used for
hedge
reporting
Total book
value Fair value
Financial investments 1) 146 - - 146 146
Receivables from associated
companies- 43 - 43 43
Derivatives - - - 0 0
Accounts receivable - trade - 35 - 35 35
Other current receivables - 70 - 70 70
Liquid assets - 41 - 41 41
Total financial assets 146 189 0 335 335
FINANCIAL LIABILITIES BY VALUATION CATEGORY, MSEK
2013 Borrowings
Derivatives
used hedge
reporting
Other finan-
cial liabilities
Total book
value Fair value
Borrowings 2,102 - - 2,102 2102
Derivatives - 10 - 10 10
Accounts payable - trade - - 65 65 65
Accrued interest 16 - - 16 16
Advance payments from
customers- - 59 59 59
Total financial liabilities 2,118 10 124 2,252 2,252
FINANCIAL LIABILITIES BY VALUATION CATEGORY, MSEK
2012 Borrowings
Derivatives
used hedge
reporting
Other finan-
cial liabilities
Total book
value Fair value
Borrowings 2,276 - - 2,276 2276
Derivatives - 23 - 23 23
Accounts payable - trade - - 43 43 43
Accrued interest 19 - - 19 19
Advance payments from
customers- - 53 53 53
Total financial liabilities 2,295 23 96 2,414 2,414
GROUP’S MATURITY STRUCTURE AS REGARDS TO UNDISCOUNTED CASH FLOWS FOR
FINANCIAL LIABILITIES AND DERIVATIVES
MSEK within 1 year 1–5 years
Accounts receivable - trade 31 -
Borrowings 2) 187 264
Derivatives -2 -
Accounts payable - trade 65 -
Advance payments from customers 59 -
2) Some of the loans will be renegotiated during forthcoming years without being repaid and, there-
fore, they are not included as a cash flow effect in the coming years.
NOTES 81
NOTE 36 RELATED PARTIES
RELATED PARTIES
The Group is under the controlling influence of the brothers Mats and Erik Paulsson, with their
families and companies. Their combined participating interest per 31 August 2013 represented ap-
proximately 58% (57) of the votes in the Group’s Parent Company.
Peab
The Peab Group is under the controlling influence of the brothers Mats and Erik Paulsson, with their
families and companies. Mats Paulsson is the CEO of Peab. SkiStar procures construction contract
work from the Peab Group in conjunction with investments in fixed assets.
Clifton-Swerock
The Company is part of the Peab Group and delivers concrete products for contractors.
Fabege
Erik Paulsson is Chairman of the Board of Fabege and has a significant influence. SkiStar rents office
space from Fabege in central Stockholm.
Hansan
Erik Paulsson is Chairman of the Board of Hansan AB and has a significant influence. SkiStar rents
office services, office equipment and IT networks to Hansan in the rented office space in central
Stockholm.
SUBSIDIARIES AND ASSOCIATED COMPANIES
In addition to the related party relationships stated above, the Parent Company has related party
relationships consisting of controlling influence in subsidiaries, see Note 15. Furthermore, the SkiStar
Group has transactions with associated companies in which SkiStar does not have a controlling inter-
est, see Note 16. Sales to subsidiaries largely refer to corporate services to the Norwegian subsidiaries
and commission from Fjällförsäkringar AB for sold cancellation insurance and ski rental insurance.
Purchases from subsidiaries largely refer to rental of accommodation from Fjällinvest AB. Purchases
from associated companies largely refer to marketing services from Experium AB, World Cup Åre AB
and Åreföretagarna AB, as well as rental of premises from Snöcenter Lindvallen AB. Sales to associated
companies largely refer to commission from acting as accommodation agents and from accounting
and property services to Lima Transtrand Fastighets AB and SkiLodge Village Lindvallen AB, Snöcenter
Lindvallen AB and Skilodge Lindvallen AB, as well as staff accommodation to Experium AB. A Transfer
Pricing agreement has been drawn up for trade with the Norwegian subsidiaries.
SENIOR MANAGEMENT
Refer to Note 8 for information regarding the salaries, other remuneration, pensions, etc. for the
Board of Directors, the CEO and other members of senior management.
TRANSACTION CONDITIONS
Transactions with related parties have taken place on market-based terms.
RELATED PARTY TRANSACTIONS, SUMMARY
GROUP
Sales to related parties
120901-130831
Purchases fromrelated parties
120901-130831
Receivables fromrelated parties
2013-08-31
Liabilities torelated parties
2013-08-31
Associated companies 35,618 45,823 102,066 9,971
Peab 270 13,386 2 2,012
Cliffton - 1,897 - -
Fabege - 1,737 - 14
Hansan 927 74 160 -
Total 36,815 62,917 102,228 11,997
PARENT COMPANY
Associated companies 22,992 41,397 42,355 9,875
Peab 267 6,846 2 637
Cliffton - 1,897 - -
Fabege - 1,737 - 14
Hansan 927 74 160 -
Total 24,186 51,951 42,517 10,526
GROUP
Sales,torelated,parties
110901-120831
Purchases,fromrelated,parties
110901-120831
Receivables,fromrelated,parties
2012-08-31
Liabilities,torelated,parties
2012-08-31
Associated companies 22,190 17,715 53,772 4,680
Peab 688 23,920 7 693
Cliffton - 2,715 - 294
Fabege - 1,407 - 14
Hansan 881 75 158 -
Total 23,759 45,832 53,937 5,681
PARENT COMPANY
Associated companies 20,587 16,182 34,678 4,562
Peab 688 18,974 7 693
Cliffton - 2,715 - 294
Fabege - 1,407 - 14
Hansan 881 75 158 -
Total 22,156 39,353 34,843 5,563
NOTE 37 EVENTS AFTER THE BALANCE SHEET DATE
Several external factors are positive for the coming season; good conditions at all destinations during
the previous winter, the nice summer giving increased priority for ski trips, a more positive economic
climate and slightly weaker exchange rates (NOK and SEK against DKK and Euro). The bookings
are 1% better compared to the same period last year. The calendar for Christmas and New Year is
advantageous with the maximum number of days off. Easter comes in late April, which means a good
potential for a long high season, at the same time a late Easter means that there will only be one
Easter week, as almost all schools have holidays in the first Easter week. Ski capital expenditures, which
are estimated at MSEK 142, consist mainly of replacement investments comprising, among others, a
warming hut in Vemdalen, an enhanced snowmaking system and a new surface lift in Sälen, as well as
capital investments in companies that are building three new chairlifts in Åre.
Investments in Property development are estimated at MSEK 38 and they include replacement
investments, the purchase of shares in associated companies, land acquisition in Hemsedal and
renovation of apartments for sale. From this autumn, there are over 90 apartments for sale in Sälen,
Vemdalen and Åre. In addition there are 80 unsold lots.
The management agreement with Andermatt expired in September. Re-negotiation of a new
agreement, more focused on support in marketing, sales and IT, is ongoing.
The Government’s budget proposal states that the regulations concerning tax exemption on
property income from properties with special tax assessment are to be removed. In its Swedish ope-
rations, SkiStar has applied these regulations. This change implies that, starting with the financial year
2014/15, the entire profit from SkiStar’s Swedish operations will be subject to tax. Meanwhile, SkiStar
AB has approximately MSEK 800 in unutilised deficit deductions, implying that the Company will not
have to pay any tax for a number of years.
The Board proposes that a dividend of SEK 2.50 per share, totalling MSEK 98, be paid to the
shareholders.
The Annual General Meeting will be held at Experium in Sälen on 14 December 2013 at 2:00 pm.
NOTE 38 IMPORTANT ACCOUNTING ESTIMATIONS AND ASSUMPTIONS
Company management undertakes estimations and assumptions regarding the future. The results of
these estimations and assumptions are used to assess the reported values of assets and liabilities. The
actual outcome may differ from these estimations and assumptions. Certain estimations and assump-
tions entailing a risk of adjustment of fair values for assets and liabilities are described below.
REVENUE RECOGNITION FOR SOLD PROPERTY
Our main principle in other contexts is that revenue recognition is performed per date of formal
transfer of possession. Revenue recognition for property sold to tenant-owners’ associations takes
place when the company owning the properties is sold to a tenant-owners’ association or other party,
under the condition that the property will be let. In other cases, revenue recognition is distributed
over a period of time at the same rate as the apartments are let. The Company has no obligation
towards the tenant-owners’ association regarding the apartments that the tenant-owners’ association
does not sell. The Company will not commence any new sales until the unsold apartments in existing
tenant-owners’ associations are sold. If the rules regarding revenue recognition are changed, the Com-
pany will make changes in its accounting, which may have some effect on future revenue recognition
regarding the sale of apartments.
VALUATION OF GOODWILL
In the calculation of the recoverable amount of cash generating units for the assessment of any
impairment requirement of goodwill (so called impairment testing), it has been assumed that these
units will also continue to generate a cash flow to the operations in the future, which implies that no
impairment requirement exists at present. Should these assumptions change, an impairment require-
ment could arise in the future. For more information regarding goodwill, see Note 13.
TAXES
Changes in tax legislation and changes in established practice in the interpretation of tax rules may
affect the amount of deferred tax assets.
DISPUTES
As of the date of preparation of this document, SkiStar is not involved in any legal dispute of substan-
tial significance to the Group.
NOTE 39 DISCLOSURE REGARDING THE PARENT COMPANY
SkiStar AB (publ), Corporate Identity Number 556093-6949, is a limited liability company registered
in Sweden, with its registered offices in the Municipality of Malung-Sälen, Dalarna County. The headqu-
arters are located in Sälen, with the postal address SE-780 67 Sälen. The Parent Company’s shares are
registered on the OMX Nordic Mid Cap Exchange in Stockholm.
NOTES82
The Consolidated Accounts and the Annual Report have been prepared in accordance with the international accounting principles referred to in the Regulation (EC) 1606/2002 of the European Parliament and Council dated 19 July 2002, regarding the application of international accounting standards and
generally accepted accounting principles, and give a true and fair view of the Group’s and the Parent Company’s financial position and income.The Group’s and Company’s respective administration reports give a true and fair view of the Group’s and the Parent Company’s operations, financial position and
income, and describe substantial risks and factors of uncertainty facing the Parent Company and the other companies in the Group.
It is the Board’s assessment, in view of the financial position of the Group and the Company, that the dividend is justifiable, with reference to the requirements placed by the operations on equity, the need to strengthen the balance sheet, and with regard to the liquidity and financial position of the Company and of the Group.
The Board of Directors approved the issuance of the Annual Report and Consolidated Accounts on 14 November 2013. The consolidated income statement and balance sheet and the Parent Company’s income statement and balance sheet will be presented
for adoption at the Annual General Meeting on 14 December 2013.
Sälen 14 november 2013
Erik Paulsson
Chairman
Mats Paulsson
Board member
Mats Årjes
CEO
Board member
Mats Qviberg
Board member
Per-Uno Sandberg
Board member
Eivor Andersson
Board member
Katarina Hjalmarsson
Employee representative
Pär Nuder
Board member
Bengt Larsson
Employee representative
AUDIT REPORT 83
AUDIT REPORT
TO THE ANNUAL GENERAL MEETING OF
SKISTAR AB (PUBL), CORPORATE IDENTITY
NUMBER 556093-6949
REPORT ON THE ANNUAL ACCOUNTS
AND CONSOLIDATED ACCOUNTS
We have audited the annual accounts and con-solidated accounts of SkiStar AB (publ) for the financial year 1 September 2012 – 31 August 2013. The annual accounts and consolidated accounts of the Company are included in the printed version of this document on pages 52–82.
Responsibilities of the Board of Directors and the
CEO for the annual accounts and consolidated
accounts
The Board of Directors and the CEO are responsible for the preparation and fair presen-tation of annual accounts in accordance with the Annual Accounts Act and for the prepara-tion and fair presentation of consolidated accounts in accordance with international accounting standards, IFRS, as adopted by the EU, and the Annual Accounts Act, and for such internal control as the Board of Directors and the CEO determine is necessary to enable the preparation of annual accounts and con-solidated accounts that are free from material misstatement, whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on these annual accounts and consolidated accounts based on our audit. We conducted our audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. Those standards require that we comply with ethical require-ments and plan and perform the audit to obtain reasonable assurance about whether the annual accounts and consolidated accounts are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts and consolidated accounts. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstate-ment of the annual accounts and consolidated accounts, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Com-pany’s preparation and fair presentation of the
annual accounts and consolidated accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appro-priateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors and the CEO, as well as evaluating the overall presentation of the annual accounts and consolidated accounts.
We believe that the audit evidence we have obtained is sufficient and appropriate to pro-vide a basis for our opinion.
Opinion
In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the Parent Company as of 31 August 2013 and of its financial performance and cash flows for the year then ended, in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the Group as of 31 August 2013 and of its financial performance and cash flows for the year then ended, in accordance with IFRS, as adopted by the EU, and the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts.
We therefore recommend that the Annual General Meeting adopt the income statement and the balance sheet for the Parent Company and the statement of comprehensive income and statement of financial position for the Group.
REPORT ON OTHER LEGAL AND REGULA-
TORY REQUIREMENTS
In addition to our audit of the annual accounts and consolidated accounts, we have also exam-ined the proposed appropriations of the Com-pany’s profit or loss and the administration of the Board of Directors and the CEO of SkiStar AB (publ) for the financial year 1 September 2012 – 31 August 2013.
Responsibilities of the Board of Directors
and the CEO
The Board of Directors is responsible for the proposal for appropriations of the Company’s profit or loss, and the Board of Directors and the CEO are responsible for administration under the Swedish Companies Act.
Auditors’ responsibility
Our responsibility is to express an opinion with reasonable assurance on the proposed appropriations of the Company’s profit or loss and on the administration based on our audit. We conducted the audit in accordance with generally accepted auditing standards in Sweden.
As a basis for our opinion on the Board of Directors’ proposed appropriations of the Com-pany’s profit or loss, we examined the Board of Directors’ motivated statement and a selection of supporting documentation in order to assess whether the proposal is in accordance with the Swedish Companies Act.
As a basis for our opinion concerning discharge from liability, in addition to our audit of the annual accounts and consolidated accounts, we examined significant decisions, actions taken and circumstances of the Compa-ny in order to determine whether any member of the Board of Directors or the CEO is liable to the Company. We also examined whether any member of the Board of Directors or the CEO has, in any other way, acted in contraven-tion of the Swedish Companies Act, the Annual Accounts Act or the Articles of Association.
We believe that the audit evidence we have obtained is sufficient and appropriate to pro-vide a basis for our opinion.
Opinion
We recommend to the Annual General Meeting that the profit be appropriated in accordance with the proposal in the statutory administra-tion report and that the members of the Board of Directors and the CEO be discharged from liability for the financial year.
Sälen, 14 November 2013KPMG AB
Owe WallinderAuthorised Public Accountant
CORPORATE GOVERNANCE REPORT84
CORPORATE GOVERNANCE REPORT
EXTERNAL RULES
AND REGULATIONS Companies Act, Listing Agreements
INTERNAL RULES AND REGULATIONSArticles of association, the formal work plan for the Board
of Directors, division of duties between the Board of
Directors/CEO, Rules of decision-making for
the Group and business areas, policies, rules,
guidelines and instructions
ANNUALGENERALMEETING
GROUPMANAGEMENT
TWO BUSINESS AREAS,PROPERTY DEVELOPMENT AND DESTINATIONS
BOARD OF DIRECTORS
EXTERNAL AUDIT
COMPENSATIONCOMMITTEE
AUDITCOMMITTEE
NOMINATINGCOMMITTEE
CORPORATE GOVERNANCESkiStar’s corporate governance is based on the Articles of Association, the Swedish Companies Act, the listing agreement with the Nasdaq OMX Nordic Exchange Stockholm AB, includ-ing the Swedish Code of Corporate Govern-ance, and other relevant Swedish and foreign laws and regulations.
The guidelines regarding the Swedish Code of Corporate Governance are available on the homepage of the Swedish Corporate Governance Board (bolagsstyrning.se). Internal guidelines, such as the Articles of Association and this document, are available on SkiStar’s homepage (http://corporate.skistar.com).
OWNERSHIP STRUCTUREAs per 31 August 2013, SkiStar had 31,162 shareholders according to the shareholder’s register administered by Euroclear Sweden AB. The three largest shareholders, in terms of vot-ing rights, represent 61.50% of the votes and 45.40% of the share capital. The distribution is shown in the administration report on page 52. Holdings by Swedish private individuals, either directly or through companies, amounted to 69.64% and Swedish institutional owner-
ship amounted to 20.98% of share capital. Foreign private individuals represent 0.20% and foreign institutional ownership represents 9.18% of the share capital.
SHARE CAPITAL AND VOTING RIGHTSSkiStar’s share capital per 31 August 2013 amounted to SEK 19,594,014, divided among 39,188,028 shares, of which 1,824,000 are Class A shares and 37,364,028 are Class B shares. Each Class A share entitles the holder to ten votes, and each Class B share entitles one vote. All shares convey equal participation in the Company’s assets and profit, and entitle equal rights to dividends. SkiStar’s Articles of Association include no limits as to how many votes every shareholder can deliver during General Meetings, other than the inherent limitation implied by the number of shares in the Company.
ANNUAL GENERAL MEETINGThe Annual General Meeting is SkiStar’s senior decision making body. The Annual General Meeting shall be held annually within six months of the close of the financial year.
All shareholders who are listed in the share register and have registered to attend within the prescribed time have the right to participate and vote for their total holding of shares. Shareholders who cannot attend the meeting can be represented by a proxy. A shareholder or a proxy may have no more than two repre-sentatives.
Notice of the Annual General Meeting will be issued in the Post- och Inrikes Tidningar and on the Company’s website, http://corporate.ski-star.com. The release of the notice will be made public in Dagens Nyheter. Shareholders who wish to participate in the Annual General Meeting shall be listed on a transcript of the entire share register showing circumstances five working days prior to the meeting, and register with the Company by 12 pm on the date stated in the notice of the meeting, at which time the number of repre-sentatives is to be stated. This day may not be a Sunday, any other public holiday, a Saturday, Midsummer Eve, Christmas Eve or New Year’s Eve, and may not fall earlier than the fifth working day prior to the meeting.
The Annual General Meeting will be held in Sälen, Åre or Stockholm.
CORPORATE GOVERNANCE REPORT 85
During the Annual General Meeting the following matters will be discussed:1. Election of chairman of the meeting.2. Preparation and approval of voting list.3. Approval of the agenda.4. Election of two persons to verify the
minutes.5. Consideration of whether the meeting has
been properly convened.6. Presentation of the annual accounts and
audit report, and of the consolidated accounts and Group audit report.
7. Resolution concerning the adoption of the income statement and balance sheet and the consolidated income statement and consolidated balance sheet.
8. Resolution concerning the appropriation of the Company’s profit or treatment of losses according to the adopted balance sheet.
9. Resolution concerning discharge from liability of the Board of Directors and the CEO.
10. Determination of remuneration to the members of the Board of Directors and the audit fees.
11. Election of Board of Directors and auditors and deputies, if any.
12. Other matters to be addressed by the General Meeting pursuant to the Swedish Annual Accounts Act or the Articles of Association.
ANNUAL GENERAL MEETING 2011/12A total of 240 shareholders, representing 71% of the votes in the Company, attended the Annual General Meeting held on 8 December 2012 at Experium in Sälen.
During the Meeting, the Board of Directors was authorised to purchase and sell shares in the Company to the effect that the Board is authorised, until the next Annual General Meeting, on one or more occasions, to decide whether to acquire Class B shares in the Com-pany. The Company’s holding of own shares, however, shall not exceed ten percent of the Company’s total number of shares at any time. Acquisition will take place on a regulated mar-ket and may only occur at a price within the prevailing registered price range, namely the range between the highest purchase considera-tion and the lowest selling price, or through a purchase offer addressed to all shareholders.
The authorisation of the Board further implies that the Board is authorised, until the next Annual General Meeting, to decide to sell the Company’s own shares on a regulated market, or in another way, in connection with the purchase of a company or business. The authorisation includes the right to decide on deviation from the shareholders’ privileges and whether payment will be made in cash, in kind, by offset or under other conditions. The authorisation may be exercised on one or more occasions and may include the maximum number of shares acquired by virtue of authori-sation to purchase own shares.
The authorisation is to give the Board of
Directors increased flexibility in the work with the Company’s capital structure and, if deemed suitable, to enable acquisition. Repurchase and sale of own shares can only apply to Class B shares.
The authorisation of the Board to issue own shares was not subject to resolution.
ANNUAL GENERAL MEETING 2011/12The Annual General Meeting for 2013 will be held at Experium in Sälen 2 pm on 14 December. For further information, visit http://corporate.skistar.com.
NOMINATING COMMITTEEThe Company’s Nominating Committee is appointed at the Annual General Meeting for a period of one year. The Nominating Committee’s duties are to prepare suggestions for Board members, remuneration for Board members, the Chairman of the Board, the Chairman of the Annual General Meeting and the Nominating Committee for the following financial year, as well as, when applicable, to prepare the nomination of auditors and auditors’ remuneration, assisted by the Audit Committee. The Nominating Committee, prior to the 2012/13 Annual General Meeting, had the following members: Erik Paulsson, Chair-man, for Company and family, Mats Qviberg, for Investment AB Öresund, Mats Paulsson, for Company and family, and Per Limberg, for Lima Jordägande Socknemän. All shareholders have had the possibility to address proposals to the Nominating Committee.
THE BOARD OF DIRECTORSComposition of the BoardThe Board is appointed by the Annual General Meeting in accordance with the Swedish Companies Act and the Board Representation (Private Sector Employees) Act. The Articles of Association include, apart from regula-tions concerning the number of members and deputies, no regulations on appointment and dismissal of the Board’s members.
The Board of Directors shall, in addition to members who may be appointed by other parties by law, be composed of four to nine members, with a maximum of three deputies. Members of the Board are elected until the end of the first Annual General Meeting held following the year of their appointment.
During 2012/13, the Annual General Meet-ing elected seven members: Erik Paulsson, Chairman, Mats Paulsson, Mats Qviberg, Per-Uno Sandberg, Eivor Andersson, Pär Nuder and Mats Årjes, CEO. Furthermore, two employee representatives were included: Katarina Hjalmarsson, Unionen and Bengt Larsson, HRF. Three of the Board members are considered to have dependent positions vis à vis the Company: Mats Årjes, in his role as CEO of SkiStar, and Mats Paulsson, in his role as deputy Chairman of the Board of construction firm Peab, with whom SkiStar has construction contracts and Erik Paulsson, on
the basis of close fraternal relationship with Mats Paulsson. For information on the age, education, assignments, shareholding etc. of each Board member, refer to page 88.
The work of the Board The work of the Board of Directors is governed by the formal work plan that the Board adopts at the Board meeting following election each year. The Chairman of the Board, Erik Paulsson, leads the work of the Board and has continuous contact with the CEO in order to follow up the Group’s business and develop-ment. The work of the Board mainly comprises strategic matters, business plans, the year-end book-closing and larger investments and sales. During the financial year 2012/13, the Board held seven scheduled meetings; the attendance of the members is shown in the table on page 87. The work of the Board is evaluated con-tinuously. SkiStar’s CFO, Magnus Sjöholm, is the Board’s secretary.
Compensation CommitteeAt the Board meeting following election on 8 December 2012, Erik Paulsson was elected Chairman of the Compensation Committee and Mats Qviberg and Mats Paulsson were elected as members. The Compensation Committee is responsible for issues concerning salaries, pension benefits, bonus programmes and other employment benefits for the CEO and management of SkiStar. The Compensa-tion Committee has no decision-making authority; rather, it prepares information and reports matters to the Board as a whole. The Compensation Committee held two meet-ings during the financial year, at which all Committee members were present, refer to the table on page 87.
Audit CommitteeAt the Board meeting following election on 8 December 2012, Per-Uno Sandberg was elected Chairman of the Audit Committee, and Eivor Andersson and Pär Nuder were elected mem-bers. The Audit Committee is responsible for ensuring that the financial reporting maintains a high standard. They also maintain regular contact with the Company’s auditors, draw up guidelines regarding negotiations for services from the Group’s auditing firm and evaluate audit activities. They also assist the Nominat-ing Committee in the work of nominating and establishing fees for the auditors. The Audit Committee has no decision-making authority; rather, it prepares information and reports matters to the Board as a whole. The Audit Committee has held three meetings during the financial year. For further information on each Board member’s attendance, refer to the table on page 87.
External auditorsAt the Annual General Meeting in 2011, KPMG was reappointed as the auditing firm for SkiStar until the Annual General Meeting in 2015. Owe Wallinder has during the year
86 CORPORATE GOVERNANCE REPORT
assumed the role as the principal auditor. The results of the audit are reported regularly during the year to Group Management and the Audit Committee. At least once per year, the auditor meets the Company’s Board of Directors. The external auditor’s independence is governed by specific rules of procedure for the Audit Committee, adopted by the Board, which set out the areas in which the external auditor may be engaged in matters outside the ordinary audit assignment. Remuneration to the auditor is paid on an approved, on-account basis. For further information on fees, refer to Note 6.
Remuneration to the BoardThe combined remuneration paid to Board members elected by the Board was fixed by the 2012 Annual General Meeting at TSEK 730 (730), of which the Chairman received TSEK 155 and the other Board members not employed by the Company each received TSEK 115. No other remuneration for work within the committees was paid.
GROUP MANAGEMENTThe policies in the chart below are presented as guidelines to the business.
The Chief Executive OfficerThe Chief Executive Officer, who is also Group Chief Executive, is responsible for the day-to-day management of the Company in accord-ance with the Board of Directors’ guidelines and directives. As support during the financial year, he has a deputy CEO, who is also the CFO, the three resort managers and the Group staff. The CEO is responsible for communicating continuous information and necessary docu-mentation for decision-making to the Board of Directors, in order to allow the Board to be able to assess the financial position of the Group and make appropriate decisions.
For the CEO’s age, education, assignments, shareholding, etc. see page 90.
The Company’s Management GroupDuring the financial year 2012/13, the Com-pany’s management group consisted of six individuals, the CEO, the deputy CEO, also CFO, the Marketing and Sales Manager, the Technical Director, also Resort Manager for the Norwegian destinations Hemsedal and Trysil, two Resort Managers in Sweden; one for Åre-, Vemdalen and one for Sälen.
FINANCIAL REPORTINGExternal financial reportingSkiStar applies International Financial Report-ing Standards (IFRS) in the preparation of the Group’s reporting. Quality in the current financial reporting is ensured via a number of internal measures and routines.
The auditors perform a limited review of the Company’s nine-month report.
In accordance with the Swedish Companies Act and the Swedish Code of Corporate Governance, the Board is responsible for internal control.
DESCRIPTION OF THE INTERNAL CONTROLControl environmentThere is a clear division of roles and respon-sibilities contained in the formal work plan of the Board of Directors and the instructions to the CEO, as well as for Board committees, the purpose of which is to ensure the effective management of the operations’ risks. Company management regularly reports to the Board according to established routines. Company management is responsible for the internal controls required to manage significant risks in the day-to-day operations of the Company. A common business system both for external reporting and for internal follow-up, budgeting and forecasting is deemed to strengthen the control environment and security in the finan-cial reporting. The Audit Committee prepares the Board of Directors’ continuous follow-up of the internal control, which includes evaluat-
ing and discussing substantial issues concern-ing auditing and reporting technicalities. During the financial year, the Audit Committee has received reports from senior management concerning the internal control projects that have been implemented. The Audit Committee held three meetings during the financial year.
Risk assessmentThe Board ensures that risk assessments are carried out for all significant risks to which the Company is exposed in the context of the financial reporting. This includes identifying those items in the income statement and balance sheet for which the risk of material misstatement is increased, and designing a control system to prevent and identify any such errors. This is primarily carried out by quickly identifying events in operations or in the external environment that may affect the financial reporting and by monitoring those changes in auditing standards and recommen-dations that concern the financial reporting of the Company.
Control activitiesThe Company works continuously with elimi-nating and reducing significant risks which can affect the internal control with regard to finan-cial reporting. Examples of control activities undertaken to manage risks are:
The management group’s follow-up and analysis
Individual reviews of the Company’s IT system, with an emphasis on the sales system. Continuous monitoring of compli-ance with authorisation manuals and authorisation structures.
Annual review of the handling of means of payment at the Company’s points of sale.
Other regular reconciliations and physical checks.
POLICIES
CODE OF CONDUCT
OTHER
Operational, strategic and
administrative policies
PERSONNEL POLICIES
HR, health and safety, etc.
SUSTAINABLE VALUE CREATION
Environment, csr , energy
SAFETY POLICY
IT, crisis management, etc.
87
BOARD OF DIRECTORS
Attendance Independent
Attendance, Audit
Committee
Attendance, Compensation
Committee Remuneration
Members elected by the AGM
Erik Paulsson 7/7 2/2 155,000
Mats Paulsson 6/7 2/2 115,000
Mats Qviberg 7/7 x 2/2 115,000
Per-Uno Sandberg 7/7 x 3/3 115,000
Eivor Andersson 7/7 x 2/3 115,000
Pär Nuder 7/7 x 1/3 115,000
Mats Årjes 7/7
Employee representatives
Bengt Larsson 6/7
Katarina Hjalmarsson 6/7
DEVIATIONS FROM THE SWEDISH CODE OF CORPORATE GOVERNANCE 2012/13
Code Rule Description Deviation Explanation
2.4 Criteria for
members of
Nominating
Committee
SkiStar’s Chairman of the Board of
Directors is also the Chairman of
the Nominating Committee. The
majority of members on the
Nominating Committee are also
Board members and are dependent
in relation to major shareholders.
The principal owners are Board
members and are also included in
the Nominating Committee, in order
to take an active ownership role
and because they are well-suited
to achieving the best results for the
Company’s shareholders.
4.1 Size and composi-
tion of the Board of
Directors
The Board of Directors does
currently not have an equal
gender distribution.
An equal gender distribution shall be
pursued.
9.2 Criteria for composi-
tion of Compensation
Committee
The Chairman of the Board of
Directors is also Chairman of the
Compensation Committee, which
implies that the other members
must be independent. Only one
of the two other members is
independent.
It is deemed that the Compensation
Committee can act independently
despite the fact that one member is
considered dependent according to
the Code.
To the Annual General Meeting of SkiStar AB (publ),Corporate Identity Number 556093-6949
The Board of Directors is responsible for the preparation of the Corporate Governance Report for the financial year 1 September 2012–31 August 2013 on pages 84–87 in accordance with the Annual Accounts Act.
We have reviewed the Corporate Governance Report, and we believe that this review, in conjunction with our knowledge of the Company and the Group, provides a reasonable basis for our opinion. This implies that our statutory review of the Corporate Governance Report has a different focus and is substantially smaller in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden.
Our opinion is that a Corporate Governance Report has been prepared, and the statutory information contained therein is consistent with the other parts of the annual accounts and consolidated accounts.
Sälen, 14 November 2013KPMG AB
Owe WallinderAuthorised Public Accountant
AUDITOR’S STATEMENT ON THE CORPORATE GOVERNANCE REPORT
Information and communicationIn order to comply with the Company’s policies, guidelines and recommendations, it is required that these be well-documented and that they be communicated within the Company. To ensure that information and communication function properly, the management group holds regular meetings with representatives from the Company’s destinations and from staff functions. Policies, manuals and instructions are available on the Company’s intranet.
Follow-upThe Board of Directors continuously evaluates the information provided by senior manage-ment and the Audit Committee and ensures that identified deficiencies in the internal controls are remedied. Of particular signifi-cance for follow-up is the work of the Audit Committee and the reports from the external auditors.
Internal auditingThe Board of Directors has made the assess-ment that the monitoring and follow-up described above are presently sufficient to ensure the efficiency of the internal control, without any special internal auditing function.
ARTICLES OF ASSOCIATIONThe Company’s current Articles of Associa-tion, adopted at the 2011 Annual General Meeting, were registered in January 2012. The Articles of Association do not include rules on the procedure for amending the Articles of Association.
COMPLIANCE WITH THE SWEDISH CODE OF CORPORATE GOVERNANCEThe adjacent table shows and explains the deviations from the Swedish Code of Corporate Governance.
The auditors’ report with regard to this Corporate Governance Report can be found to the right.
88 BOARD OF DIRECTORS
BOARD OF DIRECTORS
Erik Paulsson
Born 1942
Chairman
Elected 1977
Education: Public school
Other functions: Chairman of the Board of
Directors of Backahill AB, Brinova Fastigheter AB,
Fabege AB and Wihlborgs Fastigheter AB. Board
member of Nolato AB and Catena AB.
Shares: Including family and Company 7,543,973
Class B shares.
Dependent according to the Swedish Code for
Corporate Governance and the Stockholm stock
exchange listing agreement in relation to the
Company as well as to major shareholders.
Mats Qviberg
Born 1953
Elected 2000
Education: Master of Business Administration
Other functions: Chairman of the Board of
Directors of Investment AB Öresund and Bilia
AB. Vice-Chairman of the Board of Directors of
Fabege.
Shares: Including family 909,011 Class B shares.
Independent according to the Swedish Code for
Corporate Governance and the Stockholm stock
exchange listing agreement in relation to the
Company as well as to major shareholders.
Mats Paulsson
Born 1944
Elected 1977
Education: Public school
Other functions: Vice-Chairman of the Board of
Directors of Peab AB. Board Member of Mentor
Sverige AB, Mats Paulssons stiftelse and Medicon
Village AB.
Shares: Including family and Company 1,824,000
Class A shares and 6,583,807 Class B shares.
Dependent according to the Swedish Code for
Corporate Governance and the Stockholm stock
exchange listing agreement in relation to the
Company as well as to major shareholders.
Per-Uno Sandberg
Born 1962
Elected 2002
Education: Master of Engineering
Shares: 1,525,000 Class B shares.
Independent according to the Swedish Code for
Corporate Governance and the Stockholm stock
exchange listing agreement in relation to the
Company as well as to larger shareholders.
Mats Årjes
Born 1967
CEO
Elected 2003
Education: Master of Business Administration
Other functions: Board Member of New
Wave Group AB. Chairman of the Swedish Ski
Association.
Shares: Including Company 320,304 Class B shares.
Dependent according to the Swedish Code
for Corporate Governance and the Stockholm
stock exchange listing agreement in relation to
the Company. Independence in relation to major
shareholders.
Eivor Andersson
Born 1961
Elected 2011
Education: Marketing diploma, management training
IHM Business School.
Other functions: Chairman of the Board of
Directors of Senior Work AB/Intervallum
and Board Member of SJ AB, European Travel
Interactive AB, Ifs Global AB and F12 Gruppen AB.
Shares: 4,500 Class B shares.
Independent according to the Swedish Code for
Corporate Governance and the Stockholm stock
exchange listing agreement in relation to the
Company as well as to major larger shareholders.
Pär Nuder
Born 1963
Elected 2011
Education: Master of Laws
Other functions: Senior Director Albright
Stonebridge Group. Chairman of the Board of
Directors of Sundbybergs Stadshus AB, the Third
Swedish National Pension Fund and Hemsö AB.
Board Member of Fabege AB, Swedegas AB and
Cleanergy AB.
Shares: Including Company 14,012 Class B shares.
Independent according to the Swedish Code for
Corporate Governance and the Stockholm stock
exchange listing agreement in relation to the
Company as well as to major shareholders.
Katarina Hjalmarsson
Born 1964
Employee
representative
Bengt Larsson
Born 1951
Employee
representative
89FINANCIAL INFORMATION
FINANCIAL INFORMATION
SkiStar endeavors to maintain a high level of quality regarding the Company’s financial infor-mation. This will facilitate the understanding of SkiStar’s operations and build long-term confi-dence in the Company. SkiStar has been awarded a number of prizes for its financial information, including an honourable mention on several occasions in the “Best Accounting”, organised by the Stockholm Stock Exchange. The Company was also voted “Listed Company of the Year” in 1999, 2003 and 2004, a financial information competition arranged by the Swedish financial publications, Dagens Industri and Aktiespararna.
ANALYSTSThe following analysts monitor SkiStar’s progress and development on a regular basis:
Danske Bank – Mikael [email protected]+46 (0)70 799 95 94
JRS Securities – Johan Broströ[email protected]+46 (0)70 428 31 74
REPORTING PERIODSInterim reports and the Year-end report during the 2013/14 financial year will be published as follows:
Three-month report 1 September – 30 November 2013,
18 December 2013 Half-year report
1 September 2013 – 28 February 2014, 20 March 2014
Nine-month report 1 September 2013 – 31 May 2014,
19 June 2014 Year-end report
1 September 2013 – 31 August 2014, 2 October 2014
ANNUAL GENERAL MEETING OF SHAREHOLDERSShareholders are welcome to attend SkiStar’s Annual General Meeting on Saturday 14 December 2013 at 2.00 pm at Experium in Lindvallen, Sälen. Shareholders who would like to participate in the Annual General Meeting must be registered in the register of shareholders kept by Euroclear Sweden AB (formerly VPC) by Monday 9 December 2013
and report their intention to participate in the Annual General Meeting latest on Monday 9 December 2013, at 12 pm. Shareholders who have registered their shares with an authorised nominee must, in good time prior to 9 Decem-ber, temporarily reregister their shares in their own name in order to be able to participate in the Annual General Meeting. Registration to participate in the Annual General Meeting shall be made in writing to:
SkiStar AB,Shareholder ServicesSE-780 67 Sälen,On the Company’s corporate sitehttp://corporate.skistar.comTelephone: +46 (0)280 880 85
ANNUAL REPORTWith regards to our environment and the community, we have decided to print only a limited number of copies of the annual report. The report is available to read on http://corporate.skistar.com and can also be ordered via [email protected].
90 MANAGEMENT
MANAGEMENT
Mats Årjes
Born 1967
CEO
Employed since 2002
Education: Master of Business Administration
Previous positions: Director of Swedish Ski
Association, Hotel Manager of Mora Hotel.
CEO and partner in Santaworld AB.
Shares: Including Company 320,304 Class B
shares.
Mathias Lindström
Born 1972
Marketing and
Sales Manager
Employed since 2007
Education: Master of Business Administration
Previous positions: Nordic Marketing Manager,
Fritidsresor. Sales and Marketing Manager,
Langley Travel.
Shares: 43,000 Class B shares.
Magnus Sjöholm
Born 1960
CFO, deputy CEO
Employed since 1988
Education: Master of Business Administration
Previous positions: Auditor for LR Revision.
Shares: Including family 143,368 Class B
shares.
Jonas Bauer
Born 1964
Resort Manager Sälen
Employed since 2012
Education: Master of Business Administration
Previous positions: CEO Vasaloppet AB,
CEO and partner of the advertising agency
ANR. BBDO, Project leader advertising agen-
cy Paradiset, Product Manager Pharmacia &
Upjohn/Nicorette, Sweden Manager Danone
International Brands AB.
Shares: Including family 328 Class B shares.
Bo Halvardsson
Born 1955
Technical director,
Resort Manager,
Norway
Employed since 2005
Education: Constructional engineer
Previous positions: Administrative Director
of Trysilfjellet Alpin AS. Responsible for
Purchasing/Project Development at
SälenStjärnan AB/ SkiStar AB. CEO of
Tandådalen & Hundfjället AB.
Shares: Including family 54,000 Class B shares.
Niclas Sjögren Berg
Född 1969
Resort Manager
Åre-Vemdalen
Employed since 1989
Education: Marketing Diploma IHM
Previous positions: Various management positions
within the SkiStar Group. Business Area Manager
Ski School Tandådalen & Hundfjället AB.
Shares: 18,568 Class B shares.
ARTICLES OF ASSOCIATION 91
ARTICLES OF ASSOCIATION
§ 1 BUSINESS NAMEThe Company’s business name is SkiStar Aktiebolag, Corporate Identity Number 556093-6949. The Company is a public limited liability company (publ).
§ 2 REGISTERED OFFICESThe Board of Directors shall have its registered offices in Sälen, Municipality of Malung, County of Dalarna.
§ 3 LOCATION OF ANNUAL GENERAL MEETINGThe Annual General Meeting shall be held in Sälen, Åre or Stockholm.
§ 4 OPERATIONSThe operations of the Company, whether undertaken by the Company itself or by another company, are comprised of the ownership and operation of recrea-tional facilities, with a primary focus on alpine skiing, the conduct of travel agency, radio and TV operations, in addition to the ownership and administration of real estate and securities, as well as associated operations.
§ 5 SHARE CAPITALShare capital shall be a minimum of SEK 15,000,000 and a maximum of SEK 30,000,000. The number of shares shall be a minimum of 30,000,000 and a maxi-mum of 60,000,000.
Of the Company’s shares, a maximum of 2,250,000 shares shall be Class A shares, with ten votes per share, and a maximum of 60,000,000 shares shall be Class B shares, with one vote per share.
If the Company resolves to issue new Class A and Class B shares on the basis of a cash issue or an offset issue, the owners of Class A and Class B shares are entitled to the preferential right to subscribe for new shares of the same class in proportion to the number of shares the holder previously owned (preferential rights). Shares that are not subscribed for by holders of preferential rights shall be offered for subscription to all shareholders (subsidiary rights issue). If there are not enough shares offered for subscription via a subsidiary rights issue, the shares shall be divided amongst the subscribers in proportion to the number of shares that the subscriber previously owned. When this is not possible, the shares shall be allotted by the drawing of lots.
If the Company issues only new Class A or only new Class B shares on the basis of a cash issue, all shareholders, regardless of whether they hold Class A or Class B shares, shall have the preferential right to
subscribe for the new shares in proportion to the num-ber of shares previously owned.
If the Company issues, on the basis of a cash issue or an offset issue, share warrants or convertibles, the shareholders are entitled to the preferential right to subscribe to share warrants as if the issue regarded the shares that can be subject to subscription for new shares on the basis of the option right and the preferential right to subscribe for convertibles as if the issue regarded the shares that the convertibles can be replaced with, respectively.
The provisions above shall not imply any restric-tion to the possibility of resolving upon a cash issue with deviations from the preferential rights of the shareholders.
When share capital is increased on the basis of a bonus issue, new shares of each share type shall be issued in proportion to the previous number of shares of the same type. In this manner, old shares of a certain share type shall convey the right to new shares of the same share type. This provision shall not imply any restriction on the possibility of issuing new shares of a new type on the basis of a bonus issue, subsequent to the necessary changes to the Articles of Association.
§ 6 BOARD OF DIRECTORSThe Board of Directors shall, in addition to members who may be appointed by other parties by law, be composed of four to nine members, with a maximum of three deputies. Members of the Board are elected for a period of one year.
§ 7 AUDITORSOne or two auditors, with one or two deputies, or a registered public accounting firm, shall be appointed by the Annual General Meeting to audit the Compa-ny’s annual accounts and accounting records and the administration of the Board of Directors and the CEO.
§ 8 NOTICENotice of the Annual General Meeting will be issued in the Swedish Official Gazette and on the Company’s website, www.skistar.com. The release of the notice will be made public in Dagens Nyheter. Sharehold-ers who wish to participate in the Annual General Meeting shall be listed on a transcript of the entire share register showing circumstances five working days prior to the meeting, and register with the Com-pany by 12 pm on the date stated in the notice of the meeting, at which time the number of representatives is to be stated. This day may not be a Sunday, any
other public holiday, a Saturday, Midsummer Eve, Christmas Eve or New Year’s Eve, and may not fall earlier than the fifth working day prior to the meeting.
§ 9 ANNUAL GENERAL MEETINGAn Annual General Meeting shall be held annually within six (6) months of the end of the financial year. The following matters shall be addressed at the Annual General Meeting:1. Election of chairman of the meeting.2. Preparation and approval of voting list.3. Approval of the agenda.4. Election of two persons to verify the minutes.5. Consideration of whether the meeting has been
properly convened.6. Presentation of the annual accounts and audit
report, and of the consolidated accounts and Group audit report.
7. Resolution concerning the adoption of the income statement and balance sheet and the consolidated income statement and consolidated balance sheet.
8. Resolution concerning the appropriation of the Company’s profit or treatment of losses accord-ing to the adopted balance sheet.
9. Resolution concerning discharge from liability of the Board of Directors and the CEO.
10. Determination of remuneration to the members of the Board of Directors and the audit fees.
11. Election of Board of Directors and auditors and deputies, if any.
12. Other matters to be addressed by the General Meeting pursuant to the Swedish Annual Accounts Act or the Articles of Association.
§ 10 ATTENDANCE AT ANNUAL GENERAL MEETINGThe Board of Directors may decide that an individual who is not a shareholder of the Company, shall, on the terms established by the Board, have the right to attend the Annual General Meeting.
§ 11 FINANCIAL YEARThe Company’s financial year shall be 1 September- 31 August.
§ 12 RECORD DAY PROVISIONThe Company’s shares shall be registered in a record day register according to the Financial Instruments Act (1998:1479).
Adopted at the Annual General Meeting 10 December 2011 (registered in January 2012).
SkiStar AB (publ)
SE-780 67 Sälen
Box 7322
SE-103 90 Stockholm
Tel +46-280-880 50
Fax +46-280-218 50
skistar.com
SkiStar, Sälen
SE-780 67 Sälen
Tel +46-280-880 60
Fax +46-280-217 00
skistar.com
SkiStar, Åre
Box 36
SE-830 14 Åre
Tel +46-647-133 50
Fax +46-647-133 60
skistar.com
SkiStar, Vemdalen
Nya Landsvägen 58
SE-840 92 Vemdalen
Tel +46-684-151 00
Fax +46-684-151 49
skistar.com
SkiStar, Hemsedal
Boks 43
NO-3561 Hemsedal
Tel +47-32 05 53 00
Fax +47-32 05 53 01
skistar.com
SkiStar, Trysil
NO-2420 Trysil
Tel +47-62 45 20 00
Fax +47-62 45 44 79
skistar.com
ADDRESSES
Photographs: Jonas Kullman, Ola Matsson, Jonas Hasselgren, Kristoffer Andersson, Per Eriksson, Kalle Hägglund. Portraits: Jonas Hasselgren, Bengt Alm. Design and project management: SkiStar Mediahuset.
Print and repro: Elanders. We are not liable for any printing errors.
SkiStar AB (publ) Org nr 556093-6949 SE-780 67 Sälen Tel +46 (0)280 880 50 Fax +46 (0)280 218 50 E-mail [email protected]
