interim reportinvestors.skistar.com/afw/files/press/skistar/skistar... · 2016. 12. 21. · interim...
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INTERIM REPORTSEPTEMBER - NOVEMBER 2016
SUMMARY, SEK MILLIONS 3 MONTHS 1 Sep-30 Nov
FULL YEAR 1 Sept–31 Aug
2016/17 2015/16 2015/16
Revenue 117 82 1,991
Operating revenue 119 83 1,999
Profit/loss before tax -263 -239 386
Profit/loss after tax -207 -182 306
Earnings per share, basic and diluted, SEK -5.15 -4.64 7.82
Cash flow from operating activities 140 165 521
Operating margin, % neg neg 22
Equity/assets ratio, % 39 36 46
GOOD BOOKINGS AND EARLY START TO THE SEASON First quarter• Revenue for the first quarter was SEK 117 (82) million.
• Profit/loss after tax was SEK -207 (-182) million.
• Earnings per share, basic and diluted, amounted to SEK -5.15 (-4.64).
• Consolidation of St. Johanner Bergbahnen GmbH has had an effect of SEK -12 million on profit after tax in
the first quarter 2016.
Further information is available from:
Mats Årjes, CEO +46 (0)280 880 80
Magnus Sjöholm, CFO +46 (0)280 880 90
Early snow and cold have enabled us to open
all our ski resorts earlier than in the previous
year and everything is in place for good skiing
conditions over Christmas and the New Year.
Bookings for the next winter season are 1
percent higher than at the same point in the
previous year. Bookings for Christmas week
are slightly down due to fewer days off, while
bookings for the weeks between New Year and
the winter break, and the winter break itself,
are up on the previous year. The period after
the winter holidays shows a decline in bookings
as a result of the late Easter, which means later
booking patterns. We should also bear in mind
that last year’s bookings at the same point in
time were the strongest ever. About 80 percent
of the season’s estimated accommodation sales
have already been booked.
The modern new Skihytta Express chairlift in
Trysil is opening soon. The new lift will signifi-
cantly improve our Trysil guests’ comfort and
experience. For the 2017/18 season, we have
decided to build a new gondola lift in St. Johann
with snowmaking systems at adjacent slopes for
a total of EUR 17 million. The investment brings
St. Johann a greatly improved ski product for
beginners, children and more advanced skiers.
We still await a positive decision from the EU
concerning public funding for Scandinavian
Mountains, the airport between Sälen and
Trysil. The schedule for the first planes to land
in December 2018 remains unchanged.
We confidently look forward to another good
winter season at our destinations in Sweden,
Norway and now Austria as well.
Mats Årjes
Chief Executive Officer
COMMENTS FROM THE CEO
INTERIM REPORTSEPTEMBER - NOVEMBER 2016
2
First quarter
16/09/2016SkiStar Business launching in NorwaySkiStar Business is a success in the Swedish
group and conference market. Now SkiStar is
introducing its business concept in Norway too.
The goal is to offer Scandinavia's best and most
productive conferences, with high quality, great
service and fantastic meeting venues.
15/09/2016More adventures for children and young people feature in SkiStar’s news for winterSmart cameras that capture your jumps in
the snow parks on film, Valle’s ski school for
children and day care in the mountains. These
are some of the news items from the ski tour
operator SkiStar for the coming winter season,
with a focus on young people and health.
06/10/2016SkiStar launches a destination in the Alps – St. Johann open for bookingsSkiStar is launching its first destination in the
Alps at St. Johann in the Austrian Tyrol, which
can now be booked online at skistar.com. The
venture is the first step in establishing the ski
tour operator in the Alps. Guests can now pre-
book hotel accommodation and SkiPasses at
skistar.com just like for our Scandinavian ski
resorts.
12/10/2016Snowman Valle encourages families to book skiing holidays in JanuaryMore and more families are discovering the
opportunity for skiing between the Christmas
holidays and the winter break. Bookings during
Valle’s Winter weeks in January have increased
by 20 percent in just one year, according to
new figures from SkiStar. One explanation is
that Snowman Valle’s ski school for children is
included in the winter weeks this winter.
13/10/2016Sharp increase in active conferences in the mountainsConference trips to the Swedish mountains
are increasing sharply. Bookings with SkiStar
Business for the winter are already 25 percent
above last season. In Åre, which has long been
a popular ski conference location, demand has
increased by almost 300 percent.
07/11/2016SkiStar opens for skiing in optimal weath-er conditionsSkiStar opens three of its five Scandinavian
ski resorts on Friday 11 November. Vemdalen,
Trysil and Hemsedal are first off the mark.
Weather conditions are optimal, with abundant
snowfall at the Scandinavian ski resorts during
the past week, and the cold temperatures are
conducive to snowmaking. Booking demand for
Christmas holidays is currently high.
09/11/2016 Two Radisson Blu Resort hotels for TrysilOne of Norway’s best resort hotels, the Park Inn
Mountain Resort Trysil, is being upgraded and
will be renamed Radisson Blu Mountain Resort
& Residences. From this winter, Trysil will be
able to boast two fantastic Radisson Blu Resort
hotels on either side of the mountain, with
ski-in ski-out locations that give direct access
to Trysil’s modern ski area comprising some 70
ski slopes.
10/11/2016Closer link from London to Vemdalen and Åre this winterThis winter, ski enthusiasts can travel direct to
the ski resorts of Åre and Vemdalen from the
UK capital London. On Sunday 11 December,
easyJet, the UK’s largest airline, starts its direct
service to Åre/Östersund airport from London
Gatwick with departures every Sunday. A
reasonably priced shuttle service from the
airport to Vemdalen is also now available. This
service was previously only available to Åre.
The services significantly shorten travel time for
Londoners who want to spend time in the Swed-
ish mountains this winter.
11/11/2016SkiStar opens skiing in Åre and SälenSkiStar will open its slopes and lifts in Åre and
Sälen next weekend. Abundant snowfalls in
the country have created keen interest in ski-
ing in the mountains and booking demand for
SkiStar’s ski resorts is high. The snow that has
fallen over much of Sweden during the week is
an early Christmas present for people who like
winter games and skiing in the mountains.
18/11/2016New Sifo survey: Two out of three Swedes prefer an active holidayHolidays now mean more than lazy days – two
out of three Swedes (66 percent) want to be
physically active when travelling in winter.
These were the findings of a Sifo survey con-
ducted in the lead-up to the winter season on
behalf of the ski tour operator SkiStar.
After the end of the period
02/12/2016SkiStar opens skiing at the Austrian ski resort St. JohannThe time has come to open for skiing at
SkiStar’s new ski resort St. Johann. SkiStar
developed and improved the snowmaking facili-
ties at the Austrian resort in preparation for this
winter. These improvements and the recent
cold period mean that the resort will be opening
on Thursday 8 December.
07/12/2016.Nordea, SJ and Löfbergs in new partner-ships with SkiStarSkiStar presents three new, long-term partners:
Nordea, SJ and coffee roaster Löfbergs. As part-
ners of SkiStar, they gain unique exposure to
almost two million holidaymakers. In particular,
the partnerships will have a high profile in Åre,
Sälen and Vemdalen, the three major ski desti-
nations in Sweden.
A complete list of press releases can be found
on skistar.com.
SIGNIFICANT EVENTS DURING THE FIRST QUARTER AND AFTER THE END OF THE PERIOD
3
First quarterSkiStar’s business is highly seasonal and earn-
ings are always negative in the first quarter,
when operations are conducted to a very limited
extent. Revenue for the first quarter increased
by SEK 35 million to SEK 117 (82) million. The
increase was due to an earlier start to the winter
season this year, additional revenue from St.
Johanner Bergbahnen GmbH and increased rev-
enue from interests in accommodation/exploita-
tion assets. The Group’s operating profit/loss
declined by SEK 28 million to SEK -257 (-229)
million. Operating expenses increased due to
large amounts of snow having been produced
in the early cold weather, which is expected
to result in lower costs for snowmaking in the
second quarter. The arrival of St. Johanner Berg-
bahnen GmbH in the Group has had an adverse
impact of SEK -16 million on operating profit.
Like SkiStar, St. Johann has seasonal operations
and the company will make a positive contribu-
tion to SkiStar’s operating profit in the second
and third quarters. Operating expenses also
increased due to advertising expenses of SEK 5
million, which were recognised in the second
quarter in the previous year but in the first
quarter this year. Exchange rate changes had
an adverse effect of SEK 4 million on operating
profit compared with the previous year. Sales of
shares in tenant-owner associations and Vaca-
tion Club in the quarter generated revenue of
SEK 18 (13) million and a gain of SEK 5 (9) mil-
lion. Revenue from the sale of plots amounted
to SEK 12 (3) million, with a profit of SEK 7 (2)
million. Net financial items improved by SEK 4
million to SEK -6 (-10) million due to a positive
change of SEK 5 million in the value of interest
rate derivatives.
SeasonalitySkiStar’s operations are subject to significant
seasonal variations. The majority of revenue
and earnings are generated in the second and
third quarters. The number of days off during
Christmas and New Year and whether Easter
falls early or late also cause revenues and earn-
ings to vary. Over half of the revenue is booked
and paid in advance.
REVENUE AND EARNINGS
DISTRIBUTION OF REVENUE, SEK MILLION
3 MONTHS 1 Sep–30 Nov
FULL YEAR 1 Sep–31 Aug
2016/17 2015/16 2015/16
SkiPass 9 2 1,040
Accommodation 5 4 243
Ski rental 2 1 158
Ski school/Activities 0 0 57
Sporting goods outlets 21 14 129
Property services 17 14 100
Interests in accommodation/exploitation assets 30 16 91
Other 33 30 173
Total 117 82 1,991
4
FINANCIAL POSITION, TAXES AND INVESTMENTS
Cash flowCash flow from operating activities before
changes in working capital was SEK -229 (-186)
million for the first quarter. Cash flow from
investing activities was SEK -74 (-213) million,
while cash flow from financing activities was
SEK -75 (43) million.
Liquidity and financingConsolidated cash and cash equivalents at
the end of the period were SEK 87 million,
compared with SEK 93 million at the end of
the financial year and SEK 19 million at the
same point in the previous year. Unused credit
amounted to SEK 456 million, compared with
SEK 184 million at the end of the financial year
and SEK 315 million at the end of the first quar-
ter of the previous year. Net interest-bearing
liabilities amounted to SEK 1,706 million, a
decline of SEK 47 million since the end of the
financial year and a decline of SEK 60 million
compared with the same point in the previous
year. The average interest rate during the year
was 2.9 (2.5) percent. Net financial liabilities
amounted to SEK 1,495 million at 30 November,
a decline of SEK 52 million since the end of the
financial year and a decline of SEK 9 million
compared with the same point in the previous
year. The equity/assets ratio improved to 39
(36) percent.
TaxTax income for the first quarter amounted to
SEK 56 (57) million, and was largely attributable
to utilisation of tax values in the quarter’s loss
carryforwards. Tax income has been negatively
affected by a lower income tax rate in Norway
and tax adjustments from prior years. Accumu-
lated loss carryforwards in the Swedish opera-
tions amounted to SEK 604 (790) million.
InvestmentsInvestments in the quarter totalled SEK 104
(229) million gross and SEK 74 (213) million
net. Depreciation and amortisation in the same
period amounted to SEK 55 (49) million. The
investments were mainly related to Trysil’s
6-chair lift and snowmaking systems, and
reinvestments.
Prior to 2016/17The skiing season has started unusually
early and all ski resorts had opened by mid-
November. The early cold spell has enabled a
large proportion of the winter snowmaking to be
completed in November. Advance accommoda-
tion bookings for the 2016/17 winter season
have declined by 1 percent compared with the
previous year. The sales value of the bookings
was SEK 604 (567) million. Almost 80 percent
of the year’s estimated accommodation sales
have already been booked. A late Easter means
later booking patterns. Investments of SEK
373 million have been decided on prior to the
2017/18 season and include a new gondola with
snowmaking systems in the adjoining slopes of
St. Johann, and reinvestments at all destina-
tions.
2016/17 2015/16 2014/15
Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2
Revenue 117 116 678 1,115 82 82 678 1,076
Operating profit/loss -257 -159 291 537 -229 -149 240 532
QUARTERLY VALUES, SEK MILLION
REVENUE OPERATING PROFIT/LOSS
0
200
400
600
800
1000
1200
Kv 4Kv 3Kv 2Kv 1
2015/16 2014/15 2013/14
-300
-200
-100
0
100
200
300
400
500
600
Q 4Q 3Q 2Q 1
2015/16 2014/15 2013/14
5
OTHER INFORMATION
The SkiStar shareThe number of shareholders at 30 November
2016 was 28,800, which is an increase of 830
(3 percent) since 31 August 2016. SkiStar is
listed on the Mid Cap list of the Nasdaq Stock-
holm exchange. The number of shares was
39,188,028, of which 37,364,028 are class B
shares. The closing price of the SkiStar share at
30 November 2016 was SEK 163.
PersonnelThe average number of employees was 662
(571), an increase of 91 from the first quarter of
the previous year. The increase is attributable
to early snowmaking thanks to the early cold
weather, and the entry of St. Johann into the
SkiStar Group.
Parent CompanyThe Parent Company’s revenue for the first
quarter 2016/17 was SEK 67 (56) million.
Investments totalled SEK 48 (59) million. The
Annual General Meeting on 10 December 2016
adopted a dividend of SEK 4.50 per share, cor-
responding to a total of SEK 176 million.
Related-party transactionsThe Group is under the control of Erik and Mats
Paulsson and their families and companies.
At 30 November 2016, their shareholding
represented 63 percent of the votes and 47
percent of the capital of the Parent Company.
No significant transactions have occured during
the quarter.
Purchases from associates in the financial year
amounted to 13 (18) million, while sales to asso-
ciates were SEK 6 (3) million. Net receivables
from associates were SEK 184 (165) million,
including SEK 177 (120) million attributable to
loans to associates. In addition to the Group’s
transactions with related parties, the Parent
Company has transactions with subsidiaries.
The transactions have been conducted at mar-
ket conditions. A description of the nature of
the transactions can be found in note 35 of the
Annual Report for 2015/16.
Risks and uncertaintiesThe risks and uncertainties described below
apply to both the Parent Company and Group.
The number of guests at SkiStar’s destinations
is influenced by weather and snow conditions.
A late winter with a lack of cold weather and
natural snow in time for Christmas means
lower demand. Lower demand can also arise in
winters with prolonged cold periods and good
snow conditions in the southern, more densely
populated parts of Scandinavia, as snow, cold
weather and skiing opportunities are available
closer to home. SkiStar addresses these risks
through continuous development of snowmak-
ing systems to guarantee skiing and by making
strategic sales aimed at ensuring that the major-
ity of the accommodation capacity is booked
by the Christmas week when the high season
starts. Fluctuations in the value of the domestic
currencies against other currencies affect travel
patterns and therefore also the number of guests
at SkiStar’s destinations. SkiStar’s earnings
are also affected by the relationship between
the Swedish krona and Norwegian krone. The
number of days off during Christmas and New
Year and whether Easter comes early or late also
affects guests’ travel patterns. A more detailed
description of risks and uncertainties can be
found in the administration report and note 31
of the Annual Report for 2015/16.
AGM and inaugural Board meetingA total of 199 shareholders, representing 77.3
percent of the voting rights, attended SkiStar’s
Annual General Meeting held at Experium in
Sälen on 10 December 2016.
The following decisions were made at the
Annual General Meeting:
• A dividend of SEK 4.50 (4.00) per share
was adopted.
• Erik Paulsson (Chairman), Eivor Anders-
son, Lena Apler, Bert Nordberg, Pär Nuder,
Per-Uno Sandberg and Mats Årjes were
re-elected as ordinary Board members to
serve until the next AGM.
• Board fees of SEK 1,115 (1,020) thousand
were adopted, distributed as follows: SEK
240 (220) thousand to the Chairman and
SEK 175 (160) to the other non-executive
directors elected by the AGM.
• Mats Paulsson, Magnus Swärdh and Per-
Uno Sandberg were re-elected as members
of the Nomination Committee and Jan
Särlvik was newly elected. The Nomina-
tion Committee appoints a Chairman from
its members.
• The remuneration policies and other
terms of employment for company man-
agement as proposed by the Board were
adopted.
• The accounting firm Ernst & Young was re-
elected as auditor for a period of one year,
with Authorised Public Accountant Erik
Åström as chief auditor.
• The Meeting authorised the Board to make
decisions on the purchase and transfer of
the Company’s own shares.
The following decisions were made at the inau-
gural Board meeting:
• The Remuneration Committee is to
consist of Erik Paulsson (Chairman), Pär
Nuder and Per-Uno Sandberg.
• The Audit Committee is to consist of Per-
Uno Sandberg (Chairman), Eivor Anders-
son and Pär Nuder.
Financial informationFinancial year 2016/17The interim reports for the financial year and
the year-end report will be published as follows:
• Half-year report,
1 September 2016 – 28 February 2017,
22 March 2017.
• Interim report, Q3,
1 September 2016 – 31 May 2017,
21 June 2017.
• Year-end report,
1 September 2016 – 31 August 2017
4 October 2017.
Accounting policiesThe interim report for the Group has been
prepared in accordance with IAS 34 Interim
Financial Reporting and the Swedish Annual
Accounts Act. The interim report for the Parent
Company has been prepared in accordance
with Chapter 9 of the Swedish Annual Accounts
Act, Interim Reports. The accounting policies
and methods of calculation applied for the
Group and Parent Company are the same as
those applied in preparing the most recent
annual accounts and consolidated financial
statements. Preparation of financial state-
ments in compliance with IFRS requires the
use of accounting assessments and estimates.
It also requires Group management to make
assumptions which affect the application of the
accounting policies and the carrying amounts
of assets, liabilities, income and expense. The
actual outcome may differ from these assess-
ments and estimates. Certain statements
contained in this report are forward-looking and
reflect the current assessments of the Company
and Board of Directors with regard to future
circumstances.
6
AVERAGE INTEREST EXPENSESInterest expenses divided by average interest-
bearing liabilities.
CASH FLOW FROM OPERATING ACTIVI-TIES BEFORE CHANGES IN WORKING CAPITALThe reason for the key performance measure
is that the change in inventories, trade receiva-
bles and trade payables is marginal, and these
items are therefore eliminated to obtain a more
accurate picture of operations.
CASH FLOW PER SHARECash flow before changes in working capital
divided by the average number of shares.
CURRENT RATIOCurrent assets including unutilised credit
facilities granted as a percentage of current
liabilities.
DEBT/EQUITY RATIOInterest-bearing liabilities as a percentage of
equity.
EARNINGS PER SHAREProfit/loss for the year attributable to share-
holders of the Parent divided by the average
number of shares.
DILUTED EARNINGS PER SHARE Profit/loss for the year attributable to share-
holders of the Parent, adjusted for interest
expenses after tax on convertible debt, divided
by the number of shares after full conversion of
convertibles subscribed for.
EQUITY PER SHAREEquity divided by the average number of shares
for the reporting period.
GROSS MARGINOperating profit/loss before depreciation/amor-
tisation as a percentage of revenue.
INTEREST-BEARING LIABILITIESCurrent and non-current liabilities to credit
institutions, provisions for pensions and items
in other current liabilities that are interest-
bearing.
INTEREST COVERAGE RATIOProfit/loss after net financial items plus finance
costs as a percentage of finance costs.
QUICK RATIO Current assets including unutilised credit facili-
ties granted less inventories divided by current
liabilities.
NET MARGINProfit/loss before tax as a percentage of revenue.
OPERATING MARGINOperating profit/loss after depreciation/amorti-
sation as a percentage of revenue.
OPERATING PROFIT/LOSSRevenue less cost of goods for resale, personnel
costs, other operating expenses, depreciation,
profit/loss from joint ventures/associates and
negative goodwill.
P/E RATIOShare price at the reporting date divided by
earnings per share after tax.
RETURN ON AVERAGE EQUITYProfit/loss after tax in relation to average equity.
RETURN ON CAPITAL EMPLOYEDIProfit/loss after net financial items plus
finance costs as a percentage of average capital
employed. Capital employed is defined as assets
less non-interest-bearing liabilities.
RETURN ON EQUITYProfit/loss after tax as a percentage of equity.
RETURN ON TOTAL ASSETS Profit/loss after net financial items plus finance
costs as a percentage of average total assets.
SHARE DIVIDEND YIELDDividend divided by the share price.
SHARE PRICE/CASH FLOWShare price at the reporting date divided by
cash flow from operating activities.
PRICE/EQUITY RATIO Share price at the reporting date divided by
equity per share.
EQUITY/ASSETS RATIOEquity as a percentage of total assets.
DEFINITIONS OF KEY PERFORMANCE MEASURES
ALFAlpinanleggenes Landsforening (Norwegian
Ski Lift Association).
BOOKING VOLUMEA comparison of the number of booked over-
night stays between two defined periods.
FINANCIAL YEARSkiStar’s financial year covers the period
1 September to 31 August.
First quarter (Q 1) September – November
Second quarter (Q 2) December – February
Third quarter (Q 3) March – May
Fourth quarter (Q 4) June – August
OCCUPANCY RATE Accommodation bookings as a percentage of
the beds mediated by SkiStar at 100% capac-
ity in the period beginning the third week in
December and ending the third week in April.
OVERNIGHT STAYOne booked night in a cabin, apartment or
hotel room.
SKIER DAYOne day’s skiing with a SkiPass.
SKIPASSCard providing access to ski lifts.
SLAOSvenska Skidanläggningars Organisation
(Swedish Ski Lift Organisation).
OTHER DEFINITIONS
Key performance measures are either measures used in Swedish listed companies or those used by management and analysts.
7
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
3 MONTHS 1 Sep-30 Nov
12 MONTHSrolling
1 Dec–30 Nov
FULL YEAR 1 Sep–31 Aug
SEK THOUSANDS 2016/17 2015/16 2015/16 2015/16
Revenue 117,097 81,833 2,025,819 1 ,990,555
Other income 1,613 1,346 9,146 8,879
Total operating income 118,710 83,179 2,034,965 1,999,434
Operating expenses Goods for resale -26,375 -21,380 -212,953 -207,958
Other external expenses -166,291 -140,065 -632,886 -606,661
Personnel costs -103,201 -91,205 -555,878 -543,881
Cost of sold interests in accommodation/exploitation assets -17,955 -5,082 -50,365 -37,492
Share in profit/loss of joint ventures/ associates -6,781 -5,103 6,517 8,195
Depreciation/amortisation -55,079 -49,339 -219,011 -213,271
Negative goodwill - - 40,999 40,999
Operating profit/loss -256,972 -228,995 411,388 439,365
Net financial items -5,636 -9,993 -49,176 -53,533
Profit/loss before tax -262,608 -238,988 362,212 385,832
Tax 55,721 57,175 -80,936 -79,483
Profit/loss for the period -206,887 -181,813 281,275 306,349
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to profit or loss
Change in fair value of cash flow hedges for the period 4,331 -57 10,549 6,161
Deferred tax on cash flow hedges -989 -42 -2,552 -1,605
Step acquisition of associated company* 4,892 4,892
Exchange differences on translation of foreign operations for the period 26,467 -6,138 40,122 7,517
Other comprehensive income for the period 29,809 -6,237 53,011 16,965
Total comprehensive income for the period -177,078 -188,050 334,286 323,314
Profit/loss for the period attributable to:
Shareholders of the Parent -201,628 -181,740 290,402 310,290
Non-controlling interests -5,259 -73 -9,127 -3,941
Profit/loss for the period -206,887 -181,813 281,275 306,349
Comprehensive income for the period attributable to:
Shareholders of the Parent -173,343 -187,960 339,606 324,989
Non-controlling interests -3,735 -90 -5,320 -1,675
Total comprehensive income for the period -177,078 -188,050 334,286 323,314
Earnings per share
Basic and diluted, SEK -5.15 -4.64 7.41 7.82
Average number of shares outstanding
Basic and diluted 39,188,028 39,188,028 39,188,028 39,188,028
*A further 51% of Staven Näring AS in Hemsedal was acquired during the period. The impact on the Group’s earnings and balance sheet is only marginal.
8
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS, SEK THOUSANDS 30 Nov 2016 30 Nov 2015 31 Aug 2016
Non-current assets
Intangible assets 205,471 212,306 205,523
Property, plant and equipment 3,090,566 2,878,005 3,023,391
Investments in joint ventures/associates 256,053 240,843 262,253
Other investments and securities held as non-current assets 82,866 99,899 74,188
Other non-current receivables 219,993 200,188 202,922
Deferred tax assets - 1,448 -
Total non-current assets 3,854,949 3,632,689 3,768,276
Current assets
Goods for resale 158,212 140,311 84,910
158,212 140,311 84 910
Trade receivables 54,412 46,923 36,465
Tax receivables 25,668 22,706 19,317
Other current receivables 70,603 101,019 61,596
Prepaid expenses and accrued income 65,500 74,570 43,863
216,183 245,218 161,241
Cash & cash equivalents 87,105 18,626 92,719
Total current assets 461,500 404,155 338,870
TOTAL ASSETS 4,316,449 4,036,844 4,107,146
EQUITY AND LIABILITIES, SEK THOUSANDS
Share capital 19,594 19,594 19,594
Other contributed capital 397,573 397,573 397,573
Reserves -51,247 -95,559 -79,532
Retained earnings, including profit/loss for the period 1,269,279 1,130,737 1,470,907
Equity attributable to shareholders of the Parent 1,635,199 1,452,345 1,808,542
Non-controlling interests 57,668 994 61,403
Total equity 1,692,867 1,453,339 1,869,945
Non-current liabilities
Liabilities to credit institutions 1,051,448 40,592 1,109,667
Provisions for pensions 10,386 5,423 10,165
Other provisions 1,564 569 1,473
Other non-interest-bearing liabilities 46,727 52,406 60,421
Deferred tax liabilities 54,953 0 87,547
Total non-current liabilities 1,165,078 98,990 1,269,274
Current liabilities
Liabilities to credit institutions 644,166 1,720,281 633,017
Trade payables 152,971 157,347 96,219
Tax liabilities 16,688 33,423 37,011
Other current liabilities 455,312 416,552 112,008
Accrued expenses and deferred income 189,367 156,912 89,672
Total current liabilities 1,458,504 2,484,515 967,927
Total liabilities 2,623,582 2,583,505 2,237,201
TOTAL EQUITY AND LIABILITIES 4,316,449 4,036,844 4,107,146
PLEDGED ASSETS AND CONTINGENT LIABILITIES, SEK THOUSANDS
See note on page 16.
9
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
SEK THOUSANDS Share capital
Other contributed
capitalTranslation
reservesHedging reserves
Retained earnings and profit for the
year Total
Non- controlling
interests Total equity
Opening equity, 1 Sep 2015 19,594 397,573 -52,526 -36,813 1,312,477 1,640,305 1,084 1,641,389
Profit/loss for the period -181,740 -181,740 -73 -181,813
Other comprehensive income for the period -6,121 -99 -6,220 -17 -6,237
Comprehensive income for the period 0 0 -6,121 -99 -181,740 -187,960 -90 -188,050
Closing equity, 30 Nov 2016 19,594 397,573 -58,647 -36,912 1,130,737 1,452,345 994 1,453,339
Opening equity, 1 Sep 2016 19,594 397,573 -47,275 -32,257 1,470,907 1,808,542 61,403 1,869,945
Profit/loss for the period -201,628 -201,628 -5,259 -206,887
Other comprehensive income for the period 24,943 3,342 28,285 1,524 29,809
Comprehensive income for the period 0 0 24,943 3,342 -201,628 -173,343 -3,735 -177,078
Closing equity, 30 Nov 2016 19,594 397,573 -22,332 -28,915 1,269,279 1,635,199 57,668 1,692,867
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
3 MONTHS 1 Sep-30 Nov
FULL YEAR 1 Sep–31 Aug
SEK THOUSANDS 2016/17 2015/16 2015/16
Operating activities Profit/loss after financial items -262,608 -238,988 385,832
Adjustment for non-cash items 41,244 57,003 142,723
-221,364 -181,985 528,555
Tax paid -7,585 -4,286 -33,176
Changes in working capital 369,053 351,452 26,039
Cash flow from operating activities 140,104 165,181 521,418
Investing activities Acquisition of property, plant and equipment -92,098 -183,971 -378,092
Sale of property, plant and equipment 30,192 20,564 45,006
Other investing activities -11,692 -49,846 71,005
Cash flow from investing activities -73,598 -213,253 -262,081
Financing activities Proceeds from borrowings 200,000 47,044 381,383
Repayment of borrowings -274,785 -3,778 -416,714
Dividend paid -156,752
Cash flow from financing activities -74,785 43,266 -192,083
Cash flow for the period -8,279 -4,806 67,254
Cash & cash equivalents at beginning of year 92,719 23,513 23,513
Exchange differences 2,665 -81 1,952
Cash & cash equivalents at end of period 87,105 18,626 92,719
10
THE GROUP’S OPERATING SEGMENTS3 MONTHS
1 Sep-30 NovFULL YEAR 1 Sep–31 Aug
SEK THOUSANDS 2016/17 2015/16 2015/16
SKI RESORTS – OPERATION
Revenue 87,539 66,133 1,901,283
Other income 1,059 570 6,117
Operating income -295,117 -252,649 -1,317,214
Internal expenses -92,825 -69,500 -278,000
Share of profit/loss of joint ventures/associates -6,345 -4,986 8,331
Depreciation/amortisation -5,231 -5,949 -22,203
Operating profit/loss -310,920 -266,382 298,313
Intangible assets 205,471 212,307 205,523
Financial assets 117,148 136,024 58,239
Operating loans 341,835 326,755 571,304
INFRASTRUCTURE
Internal rental income 92,825 69,500 278,000
Sale of interests in accommodation 18,023 13,001 23,451
Capital gains, non-current assets 539 775 1,424
Cost of sold interests in accommodation -12,987 -4,477 -5,506
Depreciation/amortisation -50,598 -43,391 -191,355
Operating profit/loss 47,802 35,408 106,014
Property, plant and equipment 3,072,043 2,798,503 2,933,492
Financial assets 433,929 398,063 472,852
Investment loans 1,353,779 1,434,118 1,171,380
EXPLOITATION
Revenue from sold exploitation assets 11,550 2,700 67,159
Cost of sold exploitation assets -4,968 -605 -31,986
Share of profit/loss of joint ventures/associates -436 -116 -136
Operating profit/loss 6 ,46 1,979 35,037
Property, plant and equipment 18,523 79,502 89,900
Financial assets 7,835 8,291 8,271
IInvestment loans 0 0 0
Total external revenue for segments 118,710 83,178 1 ,999,434
Total operating profit/loss from segments -256,972 -228,995 439,365
Total non-current assets from segments 3,854,950 3,632,690 3,768,276
Total liabilities from segments 1,695,614 1,760,873 1,742,684
Segment reportingAs of the Q2 2014/15 interim report, operations are monitored and presented in the segments Ski Resorts – Operation, Infrastructure and Exploitation.
• Ski Resorts – Operation encompasses the operation of resorts and sales of all products and services. The focus is on sales and efficient operation. An estimated internal rent on capital invested in Infrastructure is charged to the segment’s earnings. There is no revenue from other segments.
• Infrastructure covers non-current assets such as land, lifts, properties, investments in partly owned companies. The focus is on generating a reasonable return on investments. Sources of revenue include internal rent from Operation and return on non-current assets.
• Exploitation covers properties not used within Infrastructure. The focus is on developing and realising value.
Investment loans have been allocated to Infrastructure, where assets that can be pledged are recognised. Operating loans have been allocated to Ski Resorts – Operation. The internal rent is based on cash flow generating a five-percent return on the carrying amounts of invested assets. Rent is determined annually in advance. Group-wide costs have been allocated according to the estimated benefit. Intra-Group sales and purchases are conducted at market conditions. Comparative values have been recalcula-ted.
11
CONDENSED INCOME STATEMENT – PARENT COMPANY
3 MONTHS 1 Sep-30 Nov
FULL YEAR 1 Sep–31 Aug
SEK THOUSANDS 2016/17 2015/16 2015/16
Revenue 67,171 56,032 1,367,505
Other operating income 1,142 886 3,149
Total operating income 68,313 56,918 1,370,654
Operating expenses Goods for resale -20,682 -17,065 -155,595
Other external expenses -126,374 -113,431 -485,871
Personnel costs -70,070 -66,290 -395,552
Cost of sold interests in accommodation/exploitation - -605 -506
Depreciation/amortisation of assets -32,741 -31,428 -130,825
Operating profit/loss -181 554 -171,901 202,306
Net financial items -1,155 -4,827 19,198
Profit/loss after net financial items -182,709 -176,728 221,503
Appropriations - - -144,258
Profit/loss before tax -182,709 -176,728 77,245
Tax 39,440 42,828 -8,049
Profit/loss for the period -143,269 -133,900 69,196
Other comprehensive income
Items that may be reclassified to profit or loss
Change in fair value of cash flow hedges for the period 2,408 -1,690 -1,389
Deferred tax on cash flow hedges -530 372 306
Other comprehensive income for the year 1,878 -1,318 -1,083
Total comprehensive income for the year -141,391 -135,218 68,113
12
CONDENSED BALANCE SHEET – PARENT COMPANY
ASSETS, SEK THOUSANDS 30 Nov 2016 30 Nov 2015 31 Aug 2016
Non-current assets Intangible assets 40,530 51,481 44,467
Property, plant and equipment 1,572,308 1 ,579,631 1,554,404
Financial assets Investments in Group companies 343,033 260,385 343,012
Investments in joint ventures/associates 8,703 8,752 8,703
Other investment and securities held as non-current-assets 16,985 14,711 14,712
Other non-current receivables 54,199 64,720 13,902
Receivables from Group companies 226,257 46,674 136,556
Total non-current assets 2,262,015 2,026,354 2,115,755
Current assets
-Inventories Goods for resale 118,565 109,196 65,863
118,565 109,196 65,863
-Current receivables Trade receivables 34,033 29,522 28,822
Receivables from Group companies 21,455 388,873 142,626
Tax receivables 16,334 16,334 12,834
Other current receivables 46,247 63,648 23,885
Prepaid expenses and accrued income 47,774 43,871 29,402
165,843 542,248 237,569
-Cash and cash equivalents Cash and bank balances 2,323 2,480 1,415
Total current assets 286,731 653,924 304,847
TOTAL ASSETS 2,548,746 2,680,278 2,420,602
EQUITY AND LIABILITIES, SEK THOUSANDS
Equity
-Restricted equity Share capital 19,594 19,594 19,594
Statutory reserve 25,750 25,750 25,750
45,344 45,344 45,344
-Non-restricted equity Share premium reserve 4,242 4,242 4,242
Retained earnings 979,185 1,064,629 908,111
Profit/loss for the year -143,269 -133,900 69,196
840,158 934,971 981,549
Total equity 885,502 980,315 1,026,893
Untaxed reserves
Non-current liabilities
-Non-current interest-bearing liabilities Liabilities to Group companies 115,679 17,970 19,203
Liabilities to credit institutions 481,946 0 558,517
-Provisions Provisions for pensions 6,157 5,423 6,038
Other provisions 886 569 678
-Non-current non-interest-bearing liabilities Derivative liabilities 42,226 38,145 49,212
Deferred tax liabilities 131,867 130,731 130,282
Total non-current liabilities 778,761 192,838 763,929
-Current liabilities Liabilities to credit institutions 297,735 971,515 287,735
Liabilities to Group companies 49,603 40,709 144,173
Trade payables 112,259 132,952 62,274
Other current liabilities 312,444 278,833 74,703
Accrued expenses and deferred income 112,442 83,116 60,894
Total current liabilities 884,483 1,507,125 629,780
Total liabilities 1,663,244 1,699,963 1,393,709
TOTAL EQUITY AND LIABILITIES 2,548,746 2,680,278 2,420,603
PLEDGED ASSETS AND CONTINGENT LIABILITIES, SEK THOUSANDS
See note on page 16.
13
KEY PERFORMANCE INDICATORS AND DATA PER SHARE
3 MONTHS1 Sep-30 Nov
FULL YEAR1 Sep–31 Aug
KEY PERFORMANCE INDICATORS 2015/16 2014/15 2013/14 2012/13 2011/12 2014/15
Revenue, SEK thousand 117,097 81,833 63,933 60,662 55,382 1,990,555
Operating income, SEK thousand 118,710 83,179 67,411 62,377 60,705 1,999,434
Profit/loss before tax, SEK thousand -262,608 -238,988 -265,089 -264,792 -268,594 385,832
Profit/loss after tax, SEK thousand -206,887 -181,813 -204,763 -214,754 -221,984 306,349
Cash flow from operating activities, SEK thousand 140,104 165,181 53,703 50,133 35,943 521,418
Total cash flow, SEK thousand -8,279 -4,806 -1,994 2,802 -9,478 67,254
Return on:
-capital employed, % -7 -7 -7 -7 -7 13
-equity, % -12 -12 -16 -17 -15 17
-total assets, % -6 -6 -6 -6 -6 11
Gross margin, % -172 -218 -305 -324 -359 33
Operating margin, % -219 -278 -381 -408 -456 22
Net margin, % -224 -290 -401 -437 -485 19
Equity/assets ratio, % 39 36 32 31 39 46
2016/17 2015/16 2014/15
Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2
Revenue, SEK thousand 117,097 115,679 678,207 1,114,836 81,833 81,773 677,996 1,075,543
Operating income, SEK thousand 118,710 116,605 678,912 1,120,738 83,179 85,375 683,716 1,076,002
Profit/loss before tax, SEK thousand -262,608 -183,746 281,416 527,150 -238,988 -158,884 229,207 517,725
Profit/loss after tax, SEK thousand -206,887 -142,485 228,935 401,712 -181,813 -121,642 176,533 398,449
Cash flow from operating activities, SEK thousand 140,104 -122,044 -170,406 648,687 165,181 -109,799 -167,207 726,831
Total cash flow, SEK thousand -8,279 -24,470 -41,633 138,163 -4,806 -3,669 -48,461 53,203
Gross margin, % neg neg 51 53 neg neg 44 54
Operating margin, % neg neg 43 48 neg neg 36 49
Net margin, % neg neg 41 47 neg neg 34 48
30 NOV 31 AUG
DATA PER SHARE 2016 2015 2014 2013 2012 2016
Share price, SEK 163.00 129.50 89.00 89.00 87.50 142.00
Average number of shares 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028
Average number of shares, after full conversion 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028
Earnings, SEK -5.15 -4.64 -5.23 -5.48 -5.66 7.82
Earnings after full conversion, SEK -5.15 -4.64 -5.23 -5.48 -5.63 7.82
Cash flow from operating activities, SEK 3.58 4.22 1.37 1.28 0.92 13.31
Share price/cash flow, times 45.6 30.7 64.9 69.6 95.4 10.7
Equity, SEK 43 37 33 32 32 48
Price/equity, % 377 349 267 277 277 298
2014/15 2014/15 2013/14
Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2
Average number of shares 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028
Average number of shares, after full conversion 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028
Earnings SEK -5.15 -3.64 5.84 10.25 -4.64 -3.10 4.50 10.17
Earnings after full conversion, SEK -5.15 -3.64 5.84 10.25 -4.64 -3.10 4.50 10.17
Cash flow from operating activities, SEK 3.58 -3.11 -4.35 16.55 4.22 -2.80 -4.27 18.55
Equity, SEK 43 48 51 43 37 42 46 41
Return on equity, % -12 -8 12 24 -13 -7 10 25
14
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES
SEK THOUSANDS 3 MONTHS1 Sep-30 Nov
FULL YEAR
1 Sep–31 Aug
FINANCING AND INTEREST-BEARING LIABILITIES 2016/17 2015/16 2015/16
Non-current interest-bearing liabilities to credit institutions 1,051,448 40,592 1,109,667
Provisions for pensions 10 ,386 5,423 10,165
Current interest-bearing liabilities to credit institutions 644,166 1 ,720,281 633,017
1,706,000 1,766,296 1,752,849
2016/17 2015/16 2014/15 2013/14 2012/13
SEK THOUSANDS Q1 Nov 2016 Q1 Nov 2014 Q1 Nov 2013 Q1 Nov 2012 Q1 Nov 2011
RETURN ON CAPITAL EMPLOYED
Profit after financial items (see previous reports) -262,608 -238,988 -265,089 -264,792 -268,594
Finance income 3,115 1,684 653 2,515 2,637
Finance costs -8,751 -11,677 -13,568 -19,741 -18,415
Net financial items -5,636 -9,993 -12,915 -17,226 -15,778
Profit after financial items, plus finance costs -253,857 -227,311 -251,521 -245 051 -250,179
CAPITAL EMPLOYED
Assets 4,316,449 4,107,146 4,036,844 3,759,838 4,083 282 3,960,236 4,054,004 3,893,942 4,224,529 4,001,855
Non-current non-interest-bearing liabilities 103,769 149,441 52,975 96,467 81,463 72,655 52,281 41,643 40,569 50,727
Current non-interest-bearing liabilities 814,338 334,910 764,234 290,279 637,710 277,002 633,949 262,745 617,142 216,375
Total non-interest-bearing liabilities 917,582 484,352 817,209 386,746 719,173 349,657 686,230 304,388 657,711 267,102
Capital employed 3,398,867 3,622,794 3,219,635 3,373,092 3,364,109 3,610,579 3,367,774 3 589,554 3,566,818 3,734,753
Average return on capital employed 3,510,831 3,296,364 3,487,344 3,478,664 3,650,786
Return on capital employed -7% -7% -7% -7% -7%
RETURN ON EQUITY
Equity 1,692,867 1,869,945 1,453,339 1 ,641,389 1,305,224 1,537,735 1,258,915 1,482,141 1,242,391 1,692,159
Average return on equity 1,781,406 1,547,364 1,421,480 1,370,528 1,467,275
Profit after tax (see also previous reports) -206,887 -182 ,256 -204,762 -214,754 -221 984
Return on equity -12% -12% -14% -16% -15%
RETURN ON TOTAL ASSETS
Total assets 4,316,449 4,107,146 4,036,844 3,759,838 4 083,282 3,960,236 4,054,004 3,893,942 4,224,529 4,001,855
Average return on total assets 4,211,797 3,898,341 4 021,759 3,973,973 4,113,192
Return on total assets -6% -6% -6% -6% -6%
15
This interim report has not been reviewed by the company’s auditor.
Sälen, 21 December 2016
Mats Årjes
Chief Executive Officer
This information is information that SkiStar AB is obliged to make public pursuant to the EU Market Abuse Regulation and
the Securities Markets Act. The information was submitted for publication, through the agency of the
contact person set out above, at 21 December 2016, 07.30 a.m. CET.
AcquisitionsSkiStar acquired properties through companies
during the 2015/16 financial year. The acquisi-
tions consisted of assets and liabilities and did
not include business operations. The remaining
shares in the associate Staven Näring AS in
Hemsedal in Norway were acquired for NOK 1.
The company does not have any employees and
the acquired assets and liabilities do not have
any material impact on the SkiStar Group’s
earnings or balance sheet. On 10 May 2016,
SkiStar AB paid share issue proceeds of EUR
10 million (SEK 93 million), thereby becoming
the owner of 68 percent of the shares in the
Austrian ski resort of St. Johanner Bergbahnen
GmbH. The value of net assets acquired after
the issue was EUR 14.4 million, which was
higher than the acquisition proceeds. The differ-
ence, EUR 4.4 million, has been treated as nega-
tive goodwill and recognised as revenue in the
consolidated income statement for 2015/16.
Information about acquired values can be found
in note 36 of the Annual Report for 2015/16.
Disclosures in accordance with IFRS 13 In addition to the usual working capital items
and cash and cash equivalents, SkiStar’s finan-
cial instruments consist of receivables from
associates, interest-bearing liabilities, deriva-
tives and available-for-sale financial assets.
Interest-bearing liabilities carry floating interest
rates. The majority of other financial assets and
liabilities have short maturities. Derivatives and
available-for-sale financial assets are measured
at fair value based on level 2 and level 3 inputs
in the IFRS 13 hierarchy. There have not been
any transfers between levels during the period.
The fair values of all financial instruments are
deemed to approximate their carrying amounts.
SkiStar has not reported any financial assets or
liabilities on a net basis.
NOTES
Pledged assets and contingent liabilities
PLEDGED ASSETS
SEK THOUSANDS 30 Nov 2016 30 Nov 2015 31 Aug 2016
Group 1,612,732 1,443,226 1 465,732
Parent Company 536,392 526,411 527,049
CONTINGENT LIABILITIES
SEK THOUSANDS 30 Nov 2016 30 Nov 2015 31 Aug 2016
Group 389,030 382,078 380,307
Parent Company 1,177,206 1,122,522 1,148,096
16
SKISTAR AB (PUBL)SE-780 67 SÄLEN
Corporate Identity Number: 556093-6949Tel: +46 280 880 50
E-mail: [email protected]
SkiStar is listed on the Nasdaq Mid Cap, Stockholm. The Group owns and operates alpine destinations in Sälen, Åre, Vemdalen and Hammarbybacken
(Stockholm) in Sweden, Hemsedal and Trysil in Norway and St. Johann in Tirol in Austria. Market share is 50% in Sweden, 31% in Norway and 42% in
Scandinavia. The Group’s core business is alpine skiing, with a focus on the guests’ overall skiing experience. Operations are divided into three seg-
ments; Ski Resorts – Operation, Infrastructure and Exploitation. As the leading operator of European Alpine destinations, SkiStar’s business concept is
to provide memorable winter experiences, offering value for guests, employees and other interested parties, which, in turn, creates value for our share-
holders. The Group’s business model and fundamental strategy are based on offering the entire range of accommodation at all of SkiStar’s destinations
through one distribution channel, thereby ensuring a high occupancy level and providing the conditions to maximise the sale of SkiPasses. In order to
achieve this, SkiStar strives to guarantee that all operators at its destinations offer a product and a service of such quality that this results in satisfied,
returning guests. Sales of SkiPasses are the most significant value driver in SkiStar’s operations.
SKISTAR IN BRIEF