Annual report 2013/14 - Corporate

Transcription

Memorable
winter experiences
Annual Report 2013/14
CONTENTS
OPERATIONS
The past year
4
Our history
5
Comments from the CEO
6
What’s new for the 2014/15 season?
8
Vision, goals and strategies for success
10
Our industry
12
SkiStar.com
16
Business Area Destinations
18
Sweden and Norway
20
Sälen
21
Åre
22
Vemdalen
23
Hemsedal
24
Trysil
25
Business Area Property Development
26
Marketing and sales
30
Employees
34
Our responsibility
36
The SkiStar share
40
Shareholder benefits
43
Operations
44
ANNUAL REPORT
Administration Report
48
Definitions
52
Five-year overview
53
Statement of Comprehensive Income for the Group
54
Statement Of Financial Position for the Group
55
Statement Of Changes in Equity for the Group
56
Cash Flow Statement for the Group
57
Parent Company Income Statement
58
Parent Company Balance Sheet
59
Statement Of Changes in Equity for the Parent
Company
60
Cash Flow Statement for the Parent Company
61
Notes To The Financial Statements
62
Signatures
82
Audit Report
83
Corporate Governance
Corporate Governance Report
84
Board of Directors
88
Financial information
89
Management
90
Articles of Association, addresses
91
SkiStar’s vision is to create
memorable winter experiences
as the leading operator
of European alpine destinations
THE PAST YEAR
IMPORTANT EVENTS DURING THE
FINANCIAL YEAR
First and second quarters: Strong
winter season lifts net sales and
income
As a part of our drive to encourage
and inspire a healthy and active lifestyle, SkiStar offers special outdoor
activity days free of charge, for school
children at Hammarbybacken.
Working in the Swedish and Norwegian mountains is a popular occupation. SkiStar AB receives thousands
of applications for employment at its
destinations in Sälen, Åre, Vemdalen,
Hemsedal and Trysil.
Åre’s three new chair lifts have been
inaugurated. This implies an increase
in capacity in the system of slightly
more than 5,000 skiers per hour and
gives us an even better offering of skiing below the tree line.
SkiStar Vacation Club is growing.
There are a larger number of objects
for sale and a new sales office has
been opened at Hammarbybacken.
skistar.com – Sweden’s best travel
site. A clearly-defined digital strategy
brought SkiStar up onto the winner’s
podium at Internetworld’s Top 100
gala awards dinner
Third quarter: stable development
and strong equity/assets ratio, in
spite of a weak end to the winter
season.
SkiStar branches out into an exciting
business area and initiates its drive
in e-commerce in mountain sports.
With 10 million visitors a year at
skistar.com, and more than one
million active customer contacts,
SkiStar is broadening its offering and
attracting new business.
The Swedish Government believes in
the tourism industry! The Government has resolved to invest MSEK 250
to actualise the plans to build a new
airport in Sälen.
THE YEAR IN FIGURES
Net sales, MSEK
Income before tax, MSEK
2013/14
2012/13
+/-
1,667
1,665
2
+/-, %
0%
179
160
19
12%
18%
Income after tax, MSEK
162
137
25
Cash flow from operating activities, MSEK
362
399
-37
-9%
Earnings per share, SEK
4.14
3.49
0.65
19%
Dividend, SEK (proposed)
Share price, 31 August, SEK
Return, %
Price-to-earnings ratio
Equity, MSEK
Equity/assets ratio, %
Return on capital employed, %
2.50
2.50
0.00
0%
84.25
81.00
3.25
4%
2.97
3.10
-0.1
-4%
20
23
-3
-12%
1,538
1,482
56
4%
39
38
1
3%
7
6
1
17%
Return on equity, %
11
9
2
22%
Gross margin, %
26
26
0
0%
Operating margin, %
14
13
1
8%
Net margin, %
11
10
1
10%
1,134
1,088
46
4%
Average no. of employees
Definitions are found on page 52
4
T HE PAST YEAR
Fourth quarter: Increased profitability and strong upswing in booking
volume, equivalent to five percent.
Åre will host the Alpine World Ski
Championships in 2019. On 5 June
2014, at the International Ski Federation’s congress in Barcelona, Åre,
Sweden was chosen to host the 2019
Alpine World Ski Championships.
SkiStar launches SkiStar Business.
SkiStar makes a significant venture
in the group travel and conference
market. The goal is to offer Scandinavia’s best and most value-creating
conference experiences.
Bookings are up 15% for January.
The fantastic summer has generated
an increase in the booking of ski
holidays.
OUR HISTORY
1999
Åre-Vemdalen AB is acquired.
1997
2000
Tandådalen and Hundfjället AB is acquired.
Hemsedal, Norway’s second
largest ski resort, is acquired.
1975/78
The brothers Erik and Mats Paulsson
purchase the ski resort
Lindvallen in Sälen.
1994
2001
Lindvallen i Sälen AB is listed on
the Stockholm Stock Exchange.
The Group adopts
the name SkiStar AB.
2005
Trysil, Norway’s largest ski resort, is acquired,
making SkiStar the operator of the five largest
ski resorts in Scandinavia.
O UR H I STO RY
5
6
COMMENTS FROM T HE C E O
COMMENTS FROM
THE CEO
THE PAST YEAR
We look back on a year of increased profitability and a strong financial position. Business
in our associated companies has developed
well and, together with an increased level of
activity within property development, we have
compensated for the weaker earnings trend
in our destinations. The demand and capacity
utilisation at our resorts during Christmas, the
New Year and the school holiday periods hit a
record high. Three new lifts were inaugurated
in Åre during the past season, and our children’s concept “Valle” can now be found at all
of SkiStar’s destinations.
NEW INITIATIVES
We recognise that striving to expand in a market with limited growth potential, and where
the number of skiing guests has remained, more
or less, unchanged during the last four years,
is something of a challenge. Consequently, we
cannot rely on market growth to reach our
profitability goals. During the autumn, we have
initiated a Group-wide project in order to more
clearly define coordination and efficiency in
operations, under the motto, “Five Destinations, One Company”. The aim of the project
is to strengthen margins, increase profitability
and, thereby, increase the possibility to further
develop the experiences we offer to our guests.
In this context, it is important to emphasise
that each destination continues to maintain
and further develop its unique characteristics
and its guests’ experiences, while retaining an
understanding of its valuable role as a component of the Company’s overall operations.
In order to further develop our operations
and complement our core business, a number
of new initiatives have been undertaken,
including the launch of one of Scandinavia’s
largest online ski shops, skistarshop.com, in the
middle of October. With this venture, we offer
our combined knowledge and a comprehensive
product range to all visitors to skistar.com. We
have complemented our physical shops, partly
through the acquisition of Hansons at Åre Torg
and partly through a new flagship store in the
shopping centre at Sälfjällstorget.
We can always host more guests in the
periods between the school holidays and later
in the season. These are periods are particularly suited to the target groups for our new
investment in SkiStar Business, a new means
of organising conferences. Our product is based
on, amongst other things, the possibility of
utilising the trip to the mountains as a part of
the event, instead of comprising only transportation.
Out (doors)is the new in!
The forthcoming season’s news as regards
lifts is West Express, a six-chair lift representing
the next step in developing Skalspasset in Vemdalen. The area will also have three new pistes
and a new, powerful snow-making system.
Åre was chosen to host the Alpine World Ski
Championships in 2019 at the International
Ski Federation’s (FIS) congress in June. With
our experience from the competition in 2007,
which resulted in a real upswing for the region,
existing resorts and supplementary investments, we look forward to welcoming the
international skiing elite to Åre.
Work continues on one notably unique
development, the establishment of an airport in
Sälen-Trysilfjällen. SkiStar has, together with
the four resort operators at the destinations in
Sälen, Trysil, Idre and Engerdal, acquired all of
the shares in Sälen-Trysil Airport AB. During
the spring, the Swedish Government resolved
to provide MSEK 250 in state support to the
airport project which, together with private
investments, will have received more than SEK
1 billion in investments.
We remain steadfast in our conviction that
this will further develop the business community in the region, where we are one of many
actors.
CURRENT BOOKING VOLUME
The booking volume for accommodation during
the forthcoming season is better than it has
been for a number of years and is five percent
higher than in the equivalent period last year.
Bookings in our jointly-owned hotels in Trysil
have increased notably. The calendar is beneficial, where taking just a few additional holiday
days in conjunction with Christmas and New
Year allows for a long vacation period.
A responsible and proactive approach, based
on efficiency enhancements and rationalisation
work, as well as on the development of new
business opportunities, will create flexibility
and further possibilities for our Company.
Welcome to SkiStar!
Mats Årjes
CEO
CO M M E NTS F R O M THE C E O
7
WHAT’S NEW
FOR THE 2014/15 SEASON?
SkiStar is introducing a number of new ideas this winter and has undertaken
extensive investments in its ski areas, a focused venture in e-commerce
with the fully-integrated skistarshop.com, and expansion into group travel
and conference facilities through SkiStar Business. In addition, Åre has now
been chosen to host the 2019 Alpine World Ski Championships, for which a
number of new investments will be made and which guests will already be
able to benefit from this coming winter.
8
News
SKISTAR BUSINESS
For SkiStar, it has always been “in” to be “out
(doors)”. One of the year’s major news items
is SkiStar Business, where SkiStar is making
a concentrated push into the group travel and
conference market. We aim to offer Scandinavia’s best, most value-creating conferences
by utilising our cutting-edge competence and
implementing innovative solutions. We also
recognise a growing trend that conference
participants enjoy being able to take part in
physical activities while attending conferences,
a trend which is reflected in the demands of
conference organisers. With SkiStar Business,
the guest experiences a tailor-made trip, regardless of the destination, and always with the
opportunity to take part in a range of activities.
SKISTARSHOP.COM
SkiStar has made a major investment in
e-commerce in mountain sports. In October
2014, the new skistarshop.com was launched
with the strongest brands in the industry,
fully-integrated into the booking stream on
skistar.com. In addition to its solid expertise
within the area of mountain sporting goods,
the Company also has an existing database of
appropriate customers. This, together with high
visitor levels on skistar.com, implies that the
possibility of quickly becoming a major player
in this market is very positive.
SKISTARSHOP CONCEPT STORE
As one stage in a multi-channel strategy,
SkiStar has opened a flagship store at Sälfjällstorget in Sälen. This complements the existing
shops at SkiStar’s destinations in Sweden and
Norway. This major investment also includes
a re-launch of a number of the sporting goods
outlets under the name SkiStarShop Concept
Store. These shops boast a larger offering of
clothing than our other sporting goods outlets.
LOYALTY CONCPET VIA MYSKISTAR
Today, MySkiStar has over 200,000 registered
users and is, for many, an indispensable tool on
the slopes. By logging on to MySkiStar directly
on a mobile device or via the web, users receive
access to many, many benefits, as well as fun
and interesting functions. Beginning in the
autumn of 2014, a rewards-based loyalty concept is connected to MySkiStar, implying that
each purchase on skistar.com and skistarshop.
com will generate points which can, subsequently, be used to book users’ next ski holiday
on skistar.com, or to buy new winter clothes or
equipment on skistarshop.com.
SÄLEN
Together with Destination Trysil, Destination
Sälenfjällen is working to establish the new
Scandinavian Mountains – centred on Sweden’s
and Norway’s largest alpine ski areas, Sälen and
Trysil. The catalyst for this is the investment
in an Airport Centre at the border between
Sweden and Norway. An international airport
is planned for this location with a shopping
centre at its heart, something that will help to
drive business, in general, in the region. Last
winter’s success continues with SkiStar Sälen’s
guests being offered late-night skiing, as late as
midnight, on special, selected occasions.
This winter, the new Valles Världshus can
be found in the Experium experience centre.
This is the first themed restaurant in SkiStar’s
new children’s concept, Valle’s World. SkiStar’s
new investment in e-commerce, with a focus on
mountain sports, will have its base at Sälfjällstorget in Lindvallen, where the SkistarShop
Concept Store opened in the autumn of 2014.
ÅRE
On 5 June, it was announced that Åre would
be the host of the third Alpine World Ski
Championships, the Alpine World Ski Championships 2019. As soon as Åre was awarded the
championships, the work to develop the arena
and other skiing systems began and a number
of investments will be already by planned and
executed in conjunction with the forthcoming
skiing season.
Duved will become the official training arena
prior to, and during, the World Championships.
The strip of forest between SkiStarbacken
and Linbanegatan will be taken away, which
will result in an entirely new, wider piste, well
adapted to modern alpine skiing, and this will
stretch all the way down to Hamrebacken.
The widening of this piste will also imply an
increased skiing surface for guests when there
happens to be training and competition underway in the area. SkiStar Åre will also invest in
an entirely new snow-making system with more
than 70 new snow cannons in the area around
Duved’s chairlift. New night lighting will also be
installed from the chairlift’s bottom terminal all
the way up to the top terminal.
In central Åre, the ski tunnel, which is located at the bottom of the Störtloppet and Gästrappet pistes, will be extended by slightly more than
30 metres. This extended tunnel will also result
in a broadening of the Gästrappet piste in those
stretches where the slope is currently narrowest.
VEMDALEN
This winter there will be a new six-chair lift, Väst
Express, and three new pistes on the western
side of Skalspasset. This implies a total transformation of the western ski area at Vemdalsskalet
and almost a doubling of the skiing surface in
the area. At the existing Pass Express, a larger
restaurant will be built with associated guest
services, SkiPass sales and a space for a ski shop.
TRYSIL
In Trysil, phase one of a new forest skiing area
in Högegga will be launched. The forest will be
thinned to make space for easily accessible forest skiing. An entirely new piste will be laid in
the centre of the forest skiing area. Last winter’s
success with midnight skiing during the school
holiday periods has now been developed into
“Late Night Skiing” each Friday between 7-10
pm at the Trysil Tourist Centre. The slopes will
be freshly-groomed for the night skiing and the
cross country parks will also be open.
HEMSEDAL
In Hemsedal, the new four kilometre long piste,
Sentrumsløypa, will be completed just in time
for the start of the season. Sentrumsløypa starts
at Fjelheisen and takes the skier all the way
from the Hemsedal Skisenter down to Hemsedal
centre. In addition to excellent skiing, the new
piste will also provide the guest with quick
and simple access to Hemsedal centre’s shops,
restaurants and bars.
Even more skiing will take place when
Hemsedal introduces extra-long days on the
slopes with Non Stop Skiing between 9 am and
7 pm several days a week, and night skiing on
freshly-groomed slopes on Fridays between 6
pm and 10 pm.
HAMMARBYBACKEN
Hammarbybacken is SkiStar’s city slope and
offers urban skiing for all ages and at all levels,
with a magnificent view over Stockholm. Here,
Stockholm residents can easily fit in skiing
during their weekday and can, in this manner,
enjoy skiing’s many positive health benefits
both before and after their ski holiday. There
are also a lot of people who try out skiing for the
first time here.
SkiStar works actively to ensure that even
more people discover how much fun it is to ski.
With this in mind, last year we launched the
first free outdoor days at Hammarbybacken
for schoolchildren in years 1-9 residing in
Nacka and the municipalities in and around
Stockholm. The days were a huge success,
with around 2,000 children, many of whom
had never before stood on skis or a snowboard,
testing the snow. More free outdoor days are
planned for the coming season.
VALLE
Last year’s new development, the children’s
concept with the snowman Valle in the centre,
was warmly received by both children and
parents. We will follow up this success with a
number of new experiences with Valle, which
will provide our smallest skiers and their parents with happy, shared memories.
This cuddly children’s favourite, Valle, will
release new songs this winter and will ensure
that the children participate in producing
the music at Valle’s World. The music is also
featured on Valle’s app, which already last
winter had more than 20,000 downloads. And,
of course, Valle will have his own playlist on
Spotify.
In Åre, Vemdalen and Hemsedal, Valle will
launch a new career as a DJ and will invite
everyone in to his very own music recording
studio, built in a unique architectural style,
“Vallmoge”. Here the children can unleash
their own creativity, create music and play with
Valle’s music-making gadgets.
In Trysil and Sälen, Valle continues his work
with his popular theatre where, together with
professional actors, he staged more than 500
plays last year.
Valle’s first restaurant, Valle’s Världshus,
will be opened at Experium in Sälen. Hearty,
healthy food is to be served to skiers both
young and old. In the unique Vallmoge style
with flashing lights and control levers, the
restaurant visit becomes a real adventure. Of
course, Valle himself will visit the restaurant
several days a week. When the skiing day has
ended, there is time for recuperating and relaxing. In order to continue to provide skiing inspiration and spread snowy happiness, SkiStar is
releasing “Valle’s Saga”, a hardback book with a
specially-written, modern saga about Valle.
News
9
VISION, GOALS
AND STRATEGIES
FOR SUCCESS
SKISTAR AIMS TO BE THE LEADING
PLAYER IN TERMS OF CONCEPTS,
AN INTEGRATED APPROACH AND
DEVELOPMENT
10
V ISION, GOALS AND ST R AT E GIE S FOR SU CC E SS
VISION
SkiStar’s vision is to create memorable winter
experiences as the leading operator of European alpine destinations.
BUSINESS CONCEPT
By providing memorable winter experiences,
SkiStar creates value for its guests, employees
and other stakeholders which, in turn, creates
value for shareholders.
GOALS
Financial targets
To 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
15% and the target return on capital employed
is 10%. These targets have been defined in
relation to the return on three-month treasury
bills, which averaged 0.68% in the financial year
2013/14. The operating margin should exceed
22% over the long term.
Operational targets
SkiStar’s growth target is an annual organic
growth rate exceeding inflation by at least 3%,
on top of any growth through acquisitions.
Inflation in Sweden during the financial year
was -0.2%.
Target achievement
The overall goal is to increase the value of our
shareholders’ capital. During the 2013/14 financial year, SkiStar’s share price increased by 4%.
The Stockholm Stock Exchange all-share index
(OMXS) gained 17% 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
achieve these goals there is a requirement of
increased profitability within the business area
Destinations, which is achieved by having a
larger number of guests, as well as by improving
the efficiency and coordination of activities.
A Group-wide rationalisation programme
was initiated in the autumn of 2014 and the
broadening of the activities includes, among
other things, the development of e-commerce
and new initiatives within business conferences. Target achievement figures are shown
in the table below. Information on the Group’s
earnings trend during the financial year can be
found on pages 55-56.
STRATEGIES
Concept 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
within SkiStar’s 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 for
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 accommodation units
while also generating profits through sales.
in response to their wishes, resulting in an
even higher number of satisfied and returning guests.
Efforts to improve access and to increase
simplicity and convenience 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 adaptation 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 accommodation
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 purchasing a ski trip to a SkiStar
destination are customers of SkiStar and
guests at their chosen destination.
Operational strategies
Well-managed products and services result
in a higher percentage of returning guests.
These represent, in turn, our best marketing
tools.
Through the provision of a well-developed
infrastructure, 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 beds 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 systems is a high priority. These systems have
been modernised and continually expanded
to ensure that we offer good skiing conditions, regardless of the amount of natural
snow.
Our destinations have distinctly varying profiles and should, therefore, taken together,
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 providers and,
secondarily, by offering our own transport
solutions.
Leadership and service strategies
SkiStar aims to ensure that it has a corporate culture centred on learning, high standards of performance, concern for others, an
emphasis on the guest and pride in what we
do. Our leadership should also encourage an
attitude of openness to change – to improve
on previous improvements.
The service we provide to our guests should
be continually enhanced. Our strategy for
achieving this objective is based on professional selection processes in recruitment
activities, coupled with training and continuous follow-up.
Our alpine destinations should be improved
continually in dialogue with our guests and
Environmental and CSR strategies
SkiStar seeks to minimise the environmental impact of its operations through active
environmental work.
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 benchmarking
SkiStar’s employees have extensive experience
and knowledge in operating alpine ski resorts.
Meetings with industry colleagues at our various destinations ensure a continual process
of cross-learning. Comparing activities and
operating 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.
TARGET ACHIEVEMENT, FINANCIAL TARGETS
Outcome 2013/14
Goal
Outcome 2012/13
Outcome 2011/12
39
>35
38
36
7
10
6
5
Return on equity, %
11
15
9
11
Operating margin, %
14
22
13
12
2
>3
7
-5
Organic growth above inflation, %
V I S I O N, G OAL S AND STR ATE G I E S FO R S UCC E SS
11
OUR INDUSTRY
ALPINE SKIING IS PRACTICED
ON ALL FIVE CONTINENTS
THE GLOBAL TOURISM INDUSTRY
Tourism is one of the world’s largest industries.
According to the UN World Tourism Organisation (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
105% since 1995, in terms of the number of
visits (tourist arrivals).
In 2013, tourist arrivals increased by 5%
globally, to 1,087 million, while turnover in the
tourism industry (tourism receipts) increased
by 5% (in fixed prices) to USD 1,159 billion.
Europe is the most visited region, accounting for over half of the world’s foreign visits.
The most visited country is France, which
attracts around 80 million tourist visits annually. In 2013, the number of visitors in Europe
increased by 5%. Asia saw the strongest growth
in the number of visitors, with an increase of
6%, followed by Africa with 5% and America
with 4%. The Middle East exhibited no growth
in 2013. Contrary with longer-term trends,
emerging markets saw a lower growth rate,
4.5%, than the more mature markets, at 5.4%.
During the first 4 months of 2014, global tourism continued to grow at the same rate as in
2013, i.e. by 5%. The outlook for the remainder
of 2014 according to UNWTO looks positive.
UNWTO’s long-term forecast envisages an
annual growth rate in visits of 4.1% up to 2020.
THE SWEDISH TOURISM INDUSTRY
The tourism industry is also an important
industry in Sweden. Accounting for about 3%
of GDP and employing more than 173,000
people, tourism makes a significant contribution to the Swedish economy. According to the
Swedish Agency for Economic and Regional
12
OU R INDU STRY
Growth, total tourist consumption in Sweden
has increased by nearly 89% in current prices
since 2000.
In 2013, total tourist consumption increased
by 3.9% to SEK 284.3 billion. Of this, SEK 178.8
billion (63%) refers to tourist consumption by
Swedes in Sweden. Swedes’ tourist consumption, specified according to private and business
travel, grew by 9% to SEK 132 billion for private
travel and saw a decrease of -5.5% to SEK 46.8
billion for business travel. Of total tourist consumption, SEK 105.7 billion refers to foreign
visitors’ consumption in Sweden. The figure,
which includes both private and business travellers, represents an increase of 2.3% compared
with 2012.
THE GLOBAL ALPINE MARKET
People practice alpine skiing on every continent. Around 2,100 ski resorts have been identified 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). During the 2013/14
season, however, skier days have decreased to
about 180 million.
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 approximately 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, although with significant
variations among regions, and for the 2013/14
season, we see a slight decline in all markets.
This is primarily due to warmer temperatures
and lack of precipitation. Perhaps the fastest
growing ski market today is in Eastern Europe
and China, both in terms of skier numbers and
the construction of new ski resorts. There are
also a large number of smaller destinations
around the world, such as Algeria, Cyprus,
Greece, India, Iran and South Africa, that are
in growth.
In most countries, ski resorts mainly attract
skiers from that 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 such as Japan, South
Africa, India and Australia, the proportion of
foreign visitors is very low.
The leading players in the industry mainly
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 Switzerland
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 liability companies with broad
ownership, of which a couple are publically
listed 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 operations to form a jointly-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 leading to
fewer and ever larger companies. Behind this
trend is the possibility of achieving economies
of scale and the need to achieve a critical
mass. Economies of scale can be achieved by
coordinating purchasing activities, in operations 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 sufficient to offset
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.
2013/14 SEASON
Nordic Region
SkiPass sales in the Swedish market decreased
during the 2013/14 season by 9.1%. It is
primarily the resorts in central and southern
Sweden and on the coasts which have reduced
total net sales. Varying factors, such as warm
temperatures and the lack of precipitation, are
major contributors, as well as a slow start to the
winter. The late Easter is also a contributing
factor.
According to SLAO (the Swedish Ski Lift
Organisation), sales of SkiPasses in Sweden
amounted to MSEK 1,152, excluding VAT,
compared with the previous season when
they increased by approximately 10% (MSEK
1,267). The average price increase was 4.17%
(3.3). The number of skier days decreased
from 8.5 million to 7.7 million, a decline of 9%.
In Norway, total sales of SkiPasses decreased
by 6.12% from MNOK 980 to MNOK 920. The
price increase in Norway was, on average, 2.5%.
The total number of skier days decreased from
5.8 million to 5.6 million. In Finland, sales of
SkiPasses declined to Euro 48.4 million (58.5)
and the number of skier days decreased from
2.8 million to 2.4 million.
North America
The number of skier days in the US decreased
by 0.7% to 56.2 million (56.6). A slow start to
the winter, combined with a lack of snow, is
reflected in the number of visitors. In spite of
this, Colorado had its best season ever and the
strongest growth was seen in south eastern USA
where Pennsylvania, West Virginia and North
Carolina increased the number of visitors by
15%. In North America, more than fifty percent
of the total skier days take place at the end of
the week, in line with previous years. The portion of snowboarders amounts to approximately
one third. Large, local deviations do occur;
however, compared with Europe, the portion of
snowboarders in North America continues to
be high.
The Alps
A decreased number of skier days can also be
seen in the Alps, where the average decrease is
at approximately 5% less than in the previous
season.
In France, the total number of skier days is
approximately 55.3 million, which is a decrease
of 4.5%. In Austria, the total number of skier
days decreased by all of 6% to 50.8 (54.2) million, similar to Switzerland where the number
of skier days declined from 24.7 million to 23.9
million. In Germany (where the number of
skiing guests is measured) there was a decline
from 5 million guests to 4.85 million. Similar to
North America and the Nordic Region, the large
ski resorts in the Alps account for a majority of
net sales. The 25 largest resorts are estimated
to account for slightly more than 60% of the
industry’s total revenues.
COMPETITION
SkiStar competes for people’s disposable
incomes. This means that, in a broader sense,
SkiStar is competing with the durable goods
and home improvement industries, to mention
just two examples. The travel industry competes with varying holiday offerings. SLAO’s
report regarding “Future outdoor experiences
and activities” (see diagram on page 14) illustrates that skiing competes, primarily, with
travel alternatives involving sunshine, beaches,
large cities, amusement parks, shopping or
all-inclusive packages. Within the alpine ski
industry, competitors are comprised of other
alpine resorts in Scandinavia and the Alps.
The statistics through the years have, however,
shown that the portion of holidaymakers choosing to travel abroad to ski has, in principle,
been unchanged.
TRENDS
SLAO’s report, “Future outdoor experiences and activities” describes 10 insights as to what
is required to increase the attractiveness of outdoor experiences and activities in the future,
both as regards demand and content. Following is a summary of these:
1. From relax to reinvigorate
The desire to experience a change in envi-
6. Enhanced sense of atmosphere
and personal involvement
ronment is a driving force for re-energising,
The most central in a positive, all-in experi-
mentally and physically, giving people
ence is the meeting between people. Being
renewed enthusiasm to return to their eve-
together with loved ones means that a spe-
ryday life.
cial atmosphere and a memorable experience is created.
2. Outdoor activities are being
urbanised
In the future, we can expect to see a
7. New generation of family-oriented
young people
number of traditional outdoor, country-
New family-oriented values amongst those
side activities in the city or, even, indoors.
born in the 1980s and 1990s can support
Hammarbybacken in Stockholm is an exam-
the development of family-friendly holiday
ple of an outdoor activity moved to a city
forms.
environment.
3. Well-organised free time
8. Out (doors) is in with the helicopter
parent generation
A little bit of adventure is appreciated but we
The customer group through which future
want to be assured that everything will be
customers are secured is families with chil-
first class. The travel experience is to be suf-
dren. Outdoor activities support the devel-
ficiently well-packaged and easily accessible.
opment of children and provide them with
status and a sense of personal identity.
4. Search for problem-free leisure
activities
Our tolerance for difficulties and unexpect-
9. Can we cope with an outdoor
lifestyle?
ed problems is decreasing and the require-
The majority of the population undertake
ment of security of delivery has increased.
no or very little physical activity during a
Peoples’ time and energy are limited
normal day. There is an increased need for
resources. We are very interested in hear-
physical exertion as a compensation for
ing about other people’s experiences and in
sedentary behaviour.
receiving their advice.
5. Digitalisation as an enhancer
10. An outdoor lifestyle contributes
to new thinking
The activity is more exciting with apps
Time spent in nature is extremely important
which, for example, report statistics and
for the rejuvenation of the brain and crea-
issue awards and honours based on perfor-
tivity. Away from the noise of the city, the
mance. There are even apps facilitating the
premises for productive thinking increase.
planning of the experience.
O UR I ND U ST RY
13
TOURIST VISITS globally, MILLIONS
SKIPASS SALES AT ALPINE DESTINATIONS, MSEK
Millions
1 100
300
250
900
200
150
700
100
50
500
0
03/04
SkiStar
Sälen
04/05
05/06
SkiStar
Åre
06/07
SkiStar
Trysil
07/08
08/09
SkiStar
Hemsedal
09/10
SkiStar
Vemdalen
10/11
11/12
12/13
Idre/
Grövelfjäll/
Fjätervålen
2000
13/14
Levi
2005
2010
2011
2012
2013
Source: UNWTO (United Nations World Travel Organisation)
Ruka
NOK/SEK is translated at the exchange rate of 1:1 for 03/04 and 04/05, 1:13 for 06/07 and 13/14, 1:14 for 12/13, 1:15 for 10/11, 1:17 for 11/12,
1:18 for 05/06 and 07/08, 1:19 for 02/03 and 08/09 and 1:22 for 09/10. EURO/SEK is translated at the exchange rate of 8:65 for 12/13,
8:84 for 11/12, 9:10 for 03/04, 9:18 for 13/14, 9:20 for 10/11, 9:21 for 06/07, 9:25 for 05/06, 9:30 for 09/10, 9:40 for 07/08, 9:45 for 04/05
and 10:54 for 08/09.
TOURIST CONSUMPTION IN SWEDEN
current prices, SEK BILLIONS
POTENTIAL FOR DIFFERENT TYPE OF HOLIDAYS, %
SEK billions
140
Camper (on campsite)
Ski trip (go on tour)
Golf Travel
120
Sailing
Caravan (at campsite)
Ski trip (cross country skiing)
100
Bicycle vacation
Winter Travel (snowmobiling/dogsledding/icebreaker/whale watching)
Tent (at campsite)
80
Cabin (at campsite)
Holidays in the mountains during the summer
Hiking
60
Spa-holiday
Cottage holidays (rented cottage)
Ski trip (downhill)
40
All-inclusive (package with hotel, food, drinks and certain activities included)
A shopping trip
Visit the amusement park/zoo/theme park/water park
%
Sun and beach
0
10
20
30
40
50
60
70
Source: The future outdoor experiences, report prepared by SLAO and SCR
in collaboration with Kairos Future.
14
OU R INDU STRY
Swedish leisure travellers
Foreign visitors
20
City Breaks
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Tillväxtverket
4,232,000 SKIER DAYS
ON THE NORDIC
REGION’S MOST
POPULAR SLOPES
O UR I ND U ST RY
15
SKIPASS • lodging • SKI RENTAL • SKI SCHOOL • SPORTs SHOP
Skistar.com
SkiStar's core business is alpine skiing with the guests' skiing experience being
the centre of attention. The website skistar.com is the hub where guests can book
their entire winter holiday, including travel arrangements, accommodation, ski
school, ski rental and SkiPass, all in one place.
Advance sales via skistar.com are, by far, the most important sales channel.
Accessibility and simplicity are the key concepts.
The aim is that all products should always be marketable through the website.
The website skistar.com has more than 9.9 million visits a year. The greatest
amount of traffic is during Christmas and the New Year when the number of visits
per week is close to 500,000.
Through "My Page" the guest will find their current and previous bookings, as
well as their customer data.
SkiPass
A personal SkiPass is not just the ticket to great skiing; it also
provides access to activities in and around the ski slopes and
MySkiStar's services and offers.
SkiPasses are purchased most easily on skistar.com by refilling
an existing card. Everything from single skier days to a season card
SkiStar All, which applies to all SkiStar destinations in Sweden and
Norway, are available online.
ACCOMMODATION
SkiStar actively works to mediate as many beds as possible. In the
season 2013/14 SkiStar destinations had a total of 36,900 beds in 5,700
objects (homes and apartments) to mediate through skistar.com. A total
of 68% of accommodation sales came from online sales.
High and consistent occupancy rates in the accommodation over the
winter season are the foundation for high profitability. The pricing of
accommodations is differentiated and based on the underlying demand.
In order to optimise demand over time, active work with targeted offers
is undertaken.
Skistarshop.com
During the autumn of 2014, SkiStar launched an online
store with the market’s strongest brands within alpine
sports. The e-store is fully integrated into the flow of
bookings of other products and services on skistar.com.
Consequently, one can buy a ski jacket while charging your
SkiPass. You can, then, choose to have the goods you have
purchased sent home or pick them up in one of our SkiStarShop Concept Stores.
HERE ARE OUR SKISTARSHOP CONCEPT STORES
FROM SEASON 2014/15:
Online: Sälen: Vemdalen: Åre: Hemsedal: 16
T his is S ki Star
skistarshop.com
Sälfjällstorget, Tandådalen
Vemdalsskalet, Björnrike
Åre Torg, Hanson sport
Hemsedal skisenter
w
w
Our Destinations:
Sälen Åre Vemdalen Hemsedal Trysil
p. 21
p. 22 p. 23
p. 24
p. 25
SWEDEN'S BEST
TRAVEL SITE 2013
SKI SCHOOL
SkiStar want to contribute to creating a lifelong interest in alpine skiing
among guests of all ages. Whether it is about learning from the ground
up to feel safe or to develop your skiing through major challenges, the
ski school contributes to the strengthening of the guest’s experience.
Skistar.com makes it possible to calmly plan and choose the right
type of classes, groups, times and meeting places that work for the entire
family or company.
.
SKI RENTAL
For those who ski a few weeks a year, it is optimal to hire equipment. The equipment from our ski rental shops is newly polished,
newly waxed and has the right settings. Each destination has several rental shops and they are always next to the slope. With the
equipment pre-booked via the web, it makes it easier on arrival
and easier to quickly get to the slopes.
COLLECT POINTS AND GET REFBATES WITH MYSKISTAR
MySkiStar is available on the web, on the mobile and in apps, and
is based on the personal SkiPass. The service makes skiing more
fun with ski statistics, competitions, pins, etc. From the autumn
TRAVEL
Even if the car is the most common way to
get to our ski resorts, there are other options.
On skistar.com we provide information about
other choices and it is possible to book train,
bus and flights to certain destinations.
of 2014, a loyalty concept will be linked to MySkiStar implying
that everything the guest purchases online at skistar.com and
skistarshop.com will generate points. From the 2015/16 season,
points can be used when booking a ski trip on skistar.com and
for purchases on skistarshop.com.
Over 215,000 people were registered users in October 2014.
INSURANCES
Through our own insurance company, Fjällförsäkringar, there are products specially
designed for mountain vacations at SkiStar
destinations. Cancellation and rebooking insurance and skier insurance can easily be added
to the online booking for the winter holiday.
This is S kiStar
17
BUSINESS AREA
DESTINATIONS
SkiStar operates the five largest ski resorts
in the nordic region, where do you want to go?
LOCATION OF THE DESTINATIONS
SkiStar 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 kilometres from Stockholm. Vemdalen is situated
on the border between the provinces of Jämtland and Härjedalen,
480 kilometres northwest of Stockholm.
Åre is situated in Jämtland, 650 kilometres
north-west of Stockholm. Hemsedal
is situated 230 kilometres northwest
of Oslo and Trysil 210 kilometres
northeast of Oslo.
OSLO
STOCKHOLM
KOPENHAGEN
18
BU S INESS AREA DEST IN AT ION S
HELSINKI
OTHER PRODUCT AREAS
Sporting goods stores
There are sports shops operated on an
in-house basis in Sälen, Åre and Hemsedal
and in Vemdalen there are two stores.
Sporting goods products related to alpine
skiing are sold in all of the Group’s shops.
During the financial year 2013/14, the
Group's sporting goods store operations
had sales totalling MSEK 72 (70).
Property services
Within the product area Property services,
there are building superintendents, carpenters, electricians, janitors and other service
personnel. Revenues within Property services
comprise of rental income for the business
premises and compensation for cabin service
and cleaning. During the financial year, revenues totalled MSEK 125 (124).
Other
Other income includes income from events,
advertising sales, kiosks, selling Ski* Direct
cards (electronic SkiPasses). Other income
during the financial year amounted to MSEK
173 (159); of the increase in revenue, a total
of MSEK 12 was generated by the new investment area, SkiStar Business.
Sälen Åre Vemdalen Hemsedal Trysil
Our Destinations:
p. 21
p. 22 p. 23
p. 24
p. 25
4,232,000
Skier days on the
nordic region’s most
popular slopes
STRATEGIC PRODUCT AREAS
Alpine Skiing/Ski Lift/SkiPass
Alpine 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 very high. Sales of SkiPasses
during the 2013/14 financial year totalled MSEK 925 (927). The average price change was 3.6%. The Group’s market share of SkiPass sales
during the financial year in Sweden was 53% (49%) and in Norway it
was 31% (28%). In Scandinavia, it increased to 43% (39%). The number of skier days within the Group, whereby one skier day is a day’s
skiing with a SkiPass, amounted to 4,232,000 (4,283,000).
Ski rental
In 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 strategically 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 amounted
to MSEK 139 (134).
Ski school
SkiStar operates its own ski schools at 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 youngsters 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 47 (46) during
the financial year. The number of learners at SkiStar’s wholly-owned
ski schools totalled 73,000. This figure excludes the ski school in
Trysil, in which SkiStar has only a participating interest.
Mediated accommodation
In order to ensure the availability of accommodation in its operations,
SkiStar is required to have control of 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 2013/14 season (Christmas week – 30 April), to 73% (74%).
Income from accommodation amounted to MSEK 189 (205). Of the
reduced accommodation revenue, a total of MSEK 12 was comprised
of changed contractual terms and conditions.
SKI PASS SALES, per skier day, SEK
OCCUPANCY RATE, accommodation, %
SEK
250
100
Number of beds
40 000
%
90
200
35 000
80
30 000
70
150
25 000
60
100
09/10
10/11
Hemsedal
Sälen
11/12
12/13
Trysil
Vemdalen
13/14
50
09/10 10/11
Åre
11/12
Occupancy rate
SKI SCHOOL SALES,
per skier day, SEK
SKI RENTAL SALES,
per skier day, SEK
SEK
25
SEK
50
20
40
15
30
10
20
5
10
0
0
09/10
10/11
Hemsedal
Sälen
11/12
12/13
Åre
Vemdalen
13/14
09/10
10/11
Hemsedal
Sälen
12/13 13/14
20 000
Mediated beds
11/12
12/13
Trysil
Vemdalen
13/14
Åre
INVESTMENTS
Investments amounted to MSEK 122,
net and mainly consisted of replacement
investments, as well as initiated investments for the winter season 2014/15.
32,413
Pieces of equipment were
available for hire during 2013/14
B US I NE SS AR E A D E STI NAT IO NS
19
destinations
SWEDEN and norway
EARNINGS TREND, Sweden
%
MSEK
1 200
25
20
1 000
15
10
800
5
0
09/10
10/11
Operating margin
11/12
12/13
13/14
Income from external customers
600
NET SALES AND INCOME SWEDEN
External net sales in the Destinations’ Swedish operations increased
by MSEK 26 to MSEK 1,171, while operating income decreased by
MSEK 19 to MSEK 121. Sales of SkiPasses in the Swedish operations
decreased by MSEK 1 to MSEK 618.
NET SALES AND INCOME NORWAY
External net sales in the Destinations’ Norwegian operations
decreased by MSEK 15 to MSEK 499 and operating income
decreased by MSEK 5 to MSEK 46. Hemsedal report decreases i
n sales and operating income for the financial year. The sales of
SkiPasses increased in local currency by MNOK 13 (5%) to
MNOK 284, and sales were unchanged in SEK, at MSEK 308.
EARNINGS TREND, Norway
%
MSEK
600
20
15
500
10
400
5
0
20
09/10
10/11
Operating margin
11/12
12/13
13/14
Income from external customers
destinations SW E D E N and norway
300
TOTAL AT SKISTAR’S DESTINATIONS:
213 397 25
lifts
SLOPES
Fun Parks
SÄLEN IN FIGURES
2013/14
Rented beds
14,200
Occupancy rate, %
83
Ski school students, nr.
40,900
Rental ski equipment, nr.
13,700
Skier days, nr.
1,355,000
Number of lifts
87
Lift capacity, skiers per hour
83,000
Number of slopes
117
Number of children’s areas
12
Longest slope, kilometres
2.5
Total length of groomed slopes, kilometres
RESORTS AND FOCUS
Sälen consists of four resorts – Lindvallen,
Högfjället, Tandådalen and Hundfjället. Sälen
is situated in the northwest of the province of
Dalarna, approximately 420 kilometres from
Stockholm and 460 kilometres 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 Högfjällshotell
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 1.3
kilometre 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.
OPERATIONS
SkiStar’s operations in Sälen comprise the skiing 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 14,000 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.
MARKET
The number of skier days decreased by 2.5%
to 1,355,000. The occupancy rate for objects
owned and mediated by SkiStar was 83% (83%).
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.
INVESTMENTS
Investments during the 2013/14 season amounted to MSEK 84.7. Among other things, they
included ta new lift in Tandådalen, Led screens
in Lindvallen and Hundfjället, as well as new bike
trails in Lindvallen. The project concerning the
water supply from Västerdalälven continued during the year, and is expected to be finished during
the 2014/15 season. Otherwise, focus has been
on a number of renovations of buildings and
installations that are central to the operations.
82
Maximum vertical drop, metres
303
Highest groomed ski area,
metres above sea level (MASL)
860
Total area of groomed slopes,
square metres
2,877,000
Area covered by snow-making systems,
square metres
1,850,000
Lit up slopes
31
Fun parks
11
PROPORTION OF GUESTS per nationality
Sweden, 89%
Norway, 1%
Denmark, 9%
Other, 1%
SKIER DAYS
Nr.
2 000 000
1 500 000
1 000 000
09/10
10/11
11/12
12/13
13/14
OCCUPANCY RATE
100
Number of beds
15 000
%
90
14 000
80
13 000
70
12 000
60
11 000
50
09/10
10/11
11/12
Occupancy rate
12/13
13/14
10 000
Mediated beds
sÄL E N
21
ÅRE IN FIGURES
2013/14
Rented beds
5,500
Occupancy rate, %
69
13,026
5,646
Skier days, nr.
956,000
Number of lifts
43
54,340
Number of slopes
111
RESORTS AND FOCUS
Åre, which is situated 650 kilometres 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 found at
Åreskutan can be found, offering an extensive
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 very long tradition of ski tourism. Åre By
has a wide selection of restaurants, entertainment and activities. Duved is situated west of
Åre By, and, similar to Åre By, is a resort with
a long-standing tradition. Duved has a slightly
calmer pace and, consequently, suits all types
of skiers.
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 the
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
terms as are currently in place. SkiStar rents
out approximately 5,500 beds annually in
Åre, of which the Group owns around 600. 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 restaurant, night club and
conference centre in Åre Fjällby, are also leased
to external operators.
22
åre
MARKET
The number of skier days decreased by 2.5%
to 956,000. Åre was hit during last winter by
unusually little snow. This implied that certain
parts of the skiing areas opened singificantly
later than normal and that the inflow of day
guests, primarily from the close-lying markets
of Östersund/Trondheim, declined. The occupancy rate of objects owned and mediated by
SkiStar was 69% (70%). Swedish guests in Åre
represent approximately 71% of all visitors,
most of whom are from the Mälardalen region
around Stockholm. The largest foreign market
is Norway, followed by Russia and Finland.
Åre is proceeding with its long-term commitment to foreign markets and by continuing
to undertake marketing activities in prioritised
markets and work with annual international
events, the proportion of foreign guests should
continue to increase. On June 5, the International Ski Federation (FIS) took the decision in
Barcelona that Åre will be hosting the Alpine
World Championships 2019. These World
Championships will be held in February 2019.
6.5
101
890
1,274
square metres
3,204,478
square metres
2,352,760
Lit up slopes
7
Fun parks
3
Sweden, 71%
Norway, 12%
Denmark, 3%
Finland, 5%
UK, 1%
The Netherlands, 1%
Russia, 5%
Baltic States, 1%
Other, 1%
SKIER DAYS
Nr.
1 200 000
1 000 000
800 000
INVESTMENTS
Investments for the 2013/14 season amounted
to MSEK 41.6, and among other things,
included the construction of three new chairlifts, a 4-seat (Tegefjäll) and two 6-seat chairlifts
(Fjällgården and Högåsliften). In Tegefjäll, the
slopes were improved by widening and realignment. The two 6-seat chairlifts connect central
Åre with Björnen in a more defined manner
and two great ski areas, meeting the modern
demands of skiing on wide and long slopes,
have been created. In conjunction with these
investments, an automated snow making system was installed and 13 hectares (equivalent
to 26 full-size soccer fields) of additional skiing
surfaces have been prepared.
4
09/10
10/11
11/12
12/13
13/14
OCCUPANCY RATE
100
Number of beds
6 500
%
90
6 000
80
5 500
70
5 000
60
50
09/10
10/11
11/12
Occupancy rate
12/13
13/14
4 500
Mediated beds
Vemdalen IN FIGURES
2013/14
Rented beds
5,300
Occupancy rate, %
66
11,179
4,424
Skier days, nr.
546,000
Number of lifts
34
35,632
Number of slopes
55
4
2.3
50
470
946
square metres
1,606,414
square metres
1,283,082
Lit up slopes
15
Fun parks
RESORT AND FOCUS
The destination Vemdalen lies approximately
480 kilometres northwest of Stockholm, on
the border between the Provinces 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.
OPERATIONS
SkiStar’s operations in Vemdalen include the
ski area, ski schools, two ski rentals and two
sporting goods outlets. Approximately 5,300
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 on expiration. Two slope restaurants in
Vemdalsskalet are sublet to external operators.
MARKET
The number of skier days amounted to
546,000. The occupancy rate of objects owned
and mediated by SkiStar was 66% (69%). 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 travel by overnight train
from Malmö via Gothenburg and Mora to Röjan/
Vemdalen. From Röjan/Vemdalen the distance
by shuttle bus to Klövsjö is 11 kilometres,
Vemdalsskalet 22 kilometres and Björnrike
35 kilometres. On location in Vemdalen, you
can find a hop-on, hop-off frequent bus service
which means that it is perfectly possible to
stay in the area without a car. The bus line
“Härjedalingen” frequently traffics StockholmVemdalen via Uppsala/Gävle/Bollnäs. Air travel
to Vemdalen is available via Östersund or Sveg.
INVESTMENTS
to MSEK 11.5, and consisted primarily of a new
warming hut in Björnrike, MSEK 6, a lift investment in Klövsjö, MSEK 2, and several reinvestments in various properties.
3
Sweden, 97%
Denmark, 1%
Finland, 1%
Russia, 1%
SKIER DAYS
Nr.
600 000
500 000
400 000
09/10
10/11
11/12
12/13
13/14
OCCUPANCY RATE
100
Number of beds
6 000
%
5 000
90
4 000
80
3 000
70
2 000
60
50
1 000
09/10
10/11
11/12
Occupancy rate
12/13
13/14
0
Mediated beds
V E M DAL E N
23
hemsedal IN FIGURES
2013/14
Rented beds
4,800
Occupancy rate, %
66
7,970
2,795
Skier days, nr.
530,000
Number of lifts
18
26,000
Number of slopes
48
1
6
41.7
810
1,450
square metres
1,460,000
square metres
775,000
Lit up slopes
12
Fun parks
RESORT AND FOCUS
Hemsedal 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.
OPERATIONS
SkiStar’s activities in Hemsedal include the
skiing area, a ski school, two ski rentals and two
sporting goods outlets. A total of approximately
4,800 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.
MARKET
The number of skier days increased by 1% to
530,000. The occupancy rate for accommodation 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 Netherlands and the UK.
During the 2013/14 season, charter flights from
the UK to Leira were initiated in collaboration
with Beitostølen and Geilo. For the 2014/15
season, this is expanded with charter flights
also from Germany. One area of major activity,
which is now beginning to show substantial
results, is the marketing efforts undertaken
within the Russian market. The combination
of foreign markets with the Norwegian market,
24
HEMS EDAL
contributes to a high occupancy level at
SkiStar’s resorts throughout the entire winter
season.
The Norwegian guests come primarily from
the areas around Oslo and Bergen, and the
majority travel with their own cars. The foreign
guests travel either by ferry, in their own cars,
via charter flights or by bus.
5
Sweden, 28%
Norway, 33%
Denmark, 29%
Finland, 1%
UK, 2%
The Netherlands, 2%
INVESTMENTS
to MSEK 21.5. The restaurant, Skistua, underwent a complete renovation and Fjellcaféen
was renovated with new toilets and a large
heated cabin. Further work has continued to
expand the “Ski In - Ski Out” opportunities
and to upgrade the snow-making system. The
number of venues and attractions in the ski
area increased, partly due to the children’s
concept, Valle.
Germany, 3%
Russia, 1%
Other, 1%
SKIER DAYS
Nr.
700 000
600 000
500 000
400 000
09/10
10/11
11/12
12/13
13/14
OCCUPANCY RATE
100
Number of beds
6 000
%
90
5 000
80
4 000
70
3 000
60
50
09/10
10/11
11/12
Occupancy rate
12/13
13/14
2 000
Mediated beds
Trysil IN FIGURES
2013/14
Rented beds
7,100
Occupancy rate, %
68
5,848
845,000
Skier days, nr.
31
Number of lifts
35,200
66
Number of slopes
3
5
71
685
1,100
2,380,000
square metres
950,000
square metres
6
Lit up slopes
3
Fun parks
RESORT AND FOCUS
Trysil 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.
OPERATIONS
SkiStar’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 mediating the
rental of 7,100 beds (including the hotel) in the
area. Operations in the ski area are conducted
on leased land. The leasing agreement has
a tenor of 50 years, with the possibility for
SkiStar to renew upon expiration. SkiStar also
sublets 13 slope restaurants in Trysil to external
operators.
MARKET
The number of skier days increased by 2.2% to
845,000. The occupancy rate for accommodation owned and mediated by SkiStar increased
to 68% (65%).
Trysil’s largest markets are Denmark and
Sweden, with 37% of the total number of guests
each, and Norway, with 14% of the guests. The
Danish and Swedish guests mainly arrive in
their own cars. The majority of Norwegian
guests come from Oslo and, therefore, 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.
INVESTMENTS
For the 2013/14 season, MSEK 10.5 was
invested in product improvements. SkiStar's
children’s concept, Valle, was launched in Trysil
and the children's activities were adapted to
this concept. Otherwise, the skiing opportunities were further developed within forest skiing,
mountain waves and mogul slopes.
Sweden, 37%
Norway, 14%
Denmark, 37%
Finland, 1%
UK, 1%
The Netherlands, 2%
Germany, 4%
Russia, 3%
Other, 1%
SKIER DAYS
Nr.
1 000 000
800 000
600 000
09/10
10/11
11/12
12/13
13/14
OCCUPANCY RATE
Number of beds
7 000
%
100
6 000
90
5 000
80
4 000
70
3 000
2 000
60
50
1 000
09/10
10/11
11/12
Occupancy rate
12/13
13/14
0
Mediated beds*
*From and beginning the 2013/14 season,
the number of mediated beds also includes
hotel accommodation.
trysil
25
BUSINESS AREA
PROPERTY DEVELOPMENT
INCREASED DEMAND FOR PLOTS HAS LIFTED CAPTIAL
GAINS FOR THE FINANCIAL YEAR BY MSEK 19
26
BU S INESS AREAPROPE RT Y D E V E LOPM E N T
BUSINESS AREA PROPERTY
DEVELOpMENT
The Property Development business area is undertaken through the wholly-owned companies,
Fjällinvest AB in Sweden and Fjellinveste Norge
AS in Norway. The companies own accommodation properties for rent and land for development,
and have participations in various real estate
companies operating at SkiStar’s destinations.
THE BUSINESS AREA’S MISSSION
The Property Development business area’s
mission is to:
Create growth in the construction of accommodation at SkiStar’s destinations, with
the largest possible return with the smallest
possible capital investment.
Create growth in the value of the assets through
their development, both independently 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 INCOME
The Property Development business area
increased external net sales by MSEK 15 to
MSEK 62, of which MSEK 41 (27) refers to capital gains from the sales of plots and apartments,
MSEK 16 (11) refers to capital gains from the
sales of shares in SkiStar Vacation Club, and
MSEK 5 (9) refers to other revenues. The costs
within the business area have decreased due to
the associated company, Radisson Blu Trysil,
reporting a decline in losses. During the previous year, non-recurring expenses of MSEK 12
were reported. Operating income for the business area increased to MSEK 66 (29).
INVESTMENTS AND DISPOSALS
Investments within the Property Development
business area totalled MSEK 31 (38), net,
during the year. The investments primarily
consisted of replacement investments and
acquisitions of shares in associated companies.
During the financial year, plots of land were
sold for a total of MSEK 11 (42), with capital
gains of MSEK 9 (27) and apartments were sold
for MSEK 69 (0), with capital gains of MSEK 32
(0). Shares in SkiStar Vacation Club have been
sold in an amount of MSEK 20 (14), with capital
gains of MSEK 16 (11). The average profit
per plot of land during the financial year was
approximately MSEK 2.2, which included two
larger plots. The estimated long-term average
capital gain per plot is approximately MSEK 1.1.
PROPERTY PORTFOLIO AND
VALUATION
The business area’s assets consist of hotel properties, cabins and apartments, development land, as
well as shares and participations in jointly-owned
real estate companies. An external market valuation of accommodation assets in Sweden, undertaken in September 2014, indicated a total value
of MSEK 774, implying a surplus value of MSEK
180 over the amount reported in the accounts.
The last valuation, undertaken in September
2010, produced a total value of MSEK 783 and a
surplus value of MSEK 230. In Hemsedal Norway,
Fjellinvest AS owns, among other properties, the
Hemsedal Alpine Lodge, which has a reported
value of MSEK 95. In Trysil Norway, Fjellinvest
AS owns 50% of Radisson Blu Trysil and Mountain
Resort Trysil via associated companies. The
acquisition cost and reported value of the Company’s holdings in associated companies amount
to MSEK 112. Radisson Blu Trysil opened for the
2008/09 season and Mountain Resort Trysil for
the 2012/13 season. The production cost for the
two entities amounted to approximately SEK 1
billion, but no market valuation has been procured in the Norwegian operations. Assets comprising development properties and unsold plots
have a total area of 5.4 million m2 (5.4) and have
a reported value of MSEK 77 (78). The majority
of these land assets were acquired many years
ago, which is the reason for their low valuation
in the accounts. The reduction in the valuation
during the year is a result of the sale of plots and
of currency effects in Norway. No market valuation of these assets has been undertaken as it is
difficult to make a reasonable assessment of the
potential rate of development in these land assets.
Based on our own assumptions and experience,
we estimate that approximately 50% would be
suitable for construction, comprising 2,700,000
m2. If the land were sold as plots, this would entail
2,700 plots of 1,000 m2.
SKISTAR VACATION CLUB
SkiStar Vacation Club is a modern form of
accommodation formulated on the basis
of guests’ demands and requirements. The
apartments are divided into weekly units, and
guests purchasing one or more of these units
receive the additional benefits of membership
in the international exchange and placement
organisation, RCI, as well as membership in
SkiStar Vacation Club. This form of accommodation is cost-effective, simple and flexible
for the timeshare owner. Cost-effectiveness
is achieved either through the utilisation of a
purchased week, compared with the equivalent
cost of renting for that week, or by exchanging
the week with a trip abroad through RCI. In
addition, the timeshare owner is able to arrange
inexpensive travel abroad through the RCI
system. SkiStar Vacation Club also provides
timeshare owners with a raft of advantages and
VIP benefits during their stay. The simplicity
of the timeshare accommodation comes from
the fact that the guest is not responsible for
the maintenance of their ownership share.
Instead, the tenant-owner association, of which
the timeshare owner automatically becomes a
part, takes care of everything. The apartment
is always clean, warm, and ready ahead of the
guest’s arrival. Flexibility is achieved as the
timeshare owners 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 SALE
During the past financial year, two private plots
of land were sold in Vemdalen as well as two
larger plots of land for commercial construction
in Sälen. There are 78 private plots still for sale
in Vemdalen and Sälen. In Vemdalen, there
are 13 remaining apartments in Solhyllan at
Vemdalsskalet and in Åre there are two remaining apartments in Åre Fjällby, of the total of 22
that had been put up for sale. A further eight
apartments in Lindvallen will be renovated
during the autumn and subsequently sold as
timeshares through the Vacation Club concept.
DEVELOPMENT PROJECTS
At all destinations, the work with identifying
new, future development projects within the
property sector continues to be an ongoing
process. These projects are capital-intensive and
will, therefore, to the greatest possible extent, be
carried out in cooperation with other investors
Sälen
In Sälen, SkiStar owns large land development
areas. The projects that have progressed the
furthest, planning-wise, are Ski Apartment
Hundfjället, an apartment complex with
approximately 700 beds, the remaining phase
for apartments in Solbacken in Tandådalen,
with approximately 500 beds, an additional
phase of SkiLodge Village in Lindvallen, with
approximately 300 beds, as well as an apartment complex next to Experium in Lindvallen,
with an additional 500 beds.
Åre
In Åre, a zoning plan has been drawn up for an
area in Åre Björnen, right next to the new ski
area with chairlifts, which includes 1,500 beds.
The project is co-owned 50/50 with Peab. In
Rödkullen, SkiStar is the minority owner in a
larger development project together with two
Norwegian partners. No zoning plan exists, to
date,, but the area is expected to generate up
to 7,000 beds in the long run. In central Åre,
directly adjacent to the cabin lift, SkiStar owns
land for the development of accommodation
and commercial areas. The area is not yet at
zoning plan stage, but is expected to generate
up to 1,300 new beds
Vemdalen
In Vemdalen, there is significant activity among
external investors as regards the 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 development is located in the centre of the Skalet area.
SkiStar owns development properties in both
Vemdalsskalet and Björnrike.
Hemsedal
In Hemsedal, plans are being made for the
development of an apartment complex with
approximately 850 beds, being built by a
jointly-owned company. The next stage of the
Alpine Lodge is also being planned and will
include approximately 600 beds. SkiStar owns a
large portion of development land in Hemsedal
for future development.
Trysil
In Trysil, the demand for commercial accommodations is minimal due to the available
capacity in the two large hotels Mountain
Resort Trysil and Radisson Blu Trysil where
SkiStar has a 50% participating interest. Jointlyowned companies in Trysil own a total of 8,000
m2 of development land.
B US I NE SS AR E AP R O P E RTY D E V E LO P ME NT
27
OPERATING PROFIT
Business Area Property Development MSEK
HOTELS, CABINS AND APARTMENTS
as well as development land
MSEK
Sälen
80
Number of hotels
Åre
Vemdalen
Hemsedal
Trysil
1
–
–
70
Number of existing cabins and
apartments
233
46
54
48
3
384
60
Number of existing timeshare
cabins and apartments
321
7
8
–
183
519
50
Land holdings (number of potential apartments)
– Completed zoning plan
330
193
231
97
16
867
– Ongoing zoning plan
104
250
–
–
32
386
– Scheduled zoning plan
190
278
–
150
75
693
– Scheduled comprehensive plan
750
–
–
300
–
1,050
40
30
20
2*
Totalt
1
4
10
*) The two hotels in Trysil are owned to 50%
0
09/10
10/11
11/12
12/13
13/14
BUSINESS AREA PROPERTY DEVELOPMENT SWEDEN
Destination
Accommodation units in the operations
Development land
Undeveloped plots
Area
Sälen
Lindvallen
Sälen
Tandådalen
Sälen
Hundfjället
Åre
Åre
Åre
Duved
Åre
Åre Björnen
Vemdalen
Vemdalen
Land, m2
Tax assessment
value, TSEK
114,251
123,351
57,244
52,234
0
5,194
4,597
30,330
2,891
5,390
12,720
14,461
30,588
21,753
222,291
252,713
Sälen
Lindvallen
2,681,827
4,700
Sälen
Tandådalen
2,569,926
1,276
809
Åre
Åre
22,350
Vemdalen
Björnrike
52,408
90
5,326,511
6,875
Sälen
Lindvallen
45,981
32,763
Sälen
Högfjället
15,490
22,026
Vemdalen
Björnrike
7,880
4,355
69,351
59,144
5,618,153
318,732
BUSINESS AREA PROPERTY DEVELOPMENT NORWAY
Destination
Land, m2
Trysil
Accommodation units in the operations
0
Hemsedal
32,000
32,000
Trysil
Development land
5,600
Hemsedal
20,000
25,600
THE BUSINESS AREA’S ASSIGNMENTS
BUSINESS AREA
PROPERTY DEVELOMENT
GROWTH
CONSTRUCTION
GROWTH
ASSETS
DEVELOPMENT
DESTINATIONS
DEVELOPMENT
SKISTAR VACATION CLUB
28
BU S INESS AREAPROPE RT Y D E V E LOPM E N T
ACQUISITIONS
/DISPOSALS
B US I NE SS AR E AP R O P E RTY D E V E LO P ME NT
29
MARKETING
AND SALES
MORE THAN FIFTY PERCENT OF ALL SALES
TAKE PLACE ON AN ADVANCE BOOKING
BASIS AND SKISTAR.COM IS THE LARGEST
SALES CHANNEL.
MISSION AND TARGETS
The 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, accommodation and insurance.
Cost effectiveness shall be achieved through
prioritising distribution via skistar.com, above
all other sales channels. Furthermore, the sales
department should work to ensure effective and
reasonably priced transportation solutions for
all destinations, via collaboration with external
organisers, such as shipping lines, charter
operators and carriers.
TRADEMARK POSITIONING
SkiStar’s brand portfolio consists of the destinations’ trademarks and the joint trademarks,
SkiStar, skistar.com, MySkiStar, skistarshop.
com and SkiStarShop Concept Store. The
guests travel to these destinations for a memorable winter experience. Skistar.com is the
30
MARK ETING AND SALE S
name of the Company’s website and is focused,
primarily, selling package holidays to the
respective destinations. MySkiStar comprises a
free of charge service offered by SkiStar, giving
guests access to information regarding their
skiing statistics, competitions, challenges, pins,
etc. SkiStarShop Concept Store and skistarshop.com are the trademarks for the Group’s
significant venture into alpine sporting goods;
clothes and equipment. The consumer of these
products is considered to be equal to a guest at
our destinations and is, clearly, a valued client
of SkiStar.
TARGET GROUPS
SkiStar’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 concepts
focused on various target-groups. The conference market is now being targeted through the
launch of SkiStar Business, while the SkiStarShop Concept Store will entail exposure to a
broader customer segment.
MARKETS
SkiStar’s customers primarily come from the
Nordic countries, where Sweden, Norway and
Denmark are considered domestic markets.
During the 2013/14 season, the Danish market
grew from 12% to 13%. The Norwegian market
shrank slightly, down 2%, while other markets
remained unchanged.
MARKETING AND SALES STRATEGIES
Tailor-made winter holidays
SkiStar’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 ski
schools, ski rental options, SkiPasses and sporting goods outlets. 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, during certain periods, an even
longer visit.
Online booking and shopping in tandem
with loyalty
The most important sales channel is skistar.
com, where guests can book their entire winter
holiday, including travel arrangements, accommodation, ski school, ski rental, SkiPass and
insurance, all in 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 skistar.com website has approximately
9.9 million visits a year. The greatest amount
of traffic is during Christmas and the New Year
when the number of visits per week is close to
500,000. The investments in e-commerce in
alpine sports products during the year imply
that customers can purchase jackets, ski equipment, etc. at the same time as booking their
stay.
The free MySkiStar service, allowing guests
to register for information regarding skiing
statistics, competitions, pins, etc. has more
than 215,000 members as per October 2014.
MySkiStar can be accessed through web
browsers, a mobile version of the site and an
app, and builds on the personal SkiPass. The
membership register for MySkiStar will provide
the base for the loyalty system to be launched
in autumn 2014.
High and stable occupancy rate
A 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 special
offers and events are marketed, aimed at the
various target groups, such as theme weeks and
events.
Available beds
SkiStar actively works to provide as many beds
as possible. When apartments/cabins are sold
through the Property Development business
area, 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.
Value for money transportation solutions
In 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 Netherlands, as well as with travel agencies in all
foreign markets. In Sweden, SkiStar also cooperates with a number of transporters including
air, rail and bus services.
Returning guests – loyalty
Returning guests are an important factor for
SkiStar’s high profitability, as the marketing
cost for a returning guest is much lower compared 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 autumn 2014, the first stage of SkiStar’s
internally-developed cash system was
launched. The aim of this system is to ultimately bring together the customer’s entire
purchasing process from advance sales and
on-site sales to, in addition, sales after the
guest’s stay.
SALES CHANNELS
Sales are carried out via four channels, including 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% (95). The
portion of bookings via skistar.com during
the 2013/14 season was 41% (45). As regards
accommodation only, a considerable 68%
(68) 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.
Communication
SkiStar’s marketing aims at emphasising the
unique characteristics of each individual
destination in order to provide our guests with
a broad selection. A common graphic portrayal
of the SkiStar brand through the skistar.com
distribution channel and the destinations’ profiles, ensures a market-wide recognition of the
company and its services, as a whole. SkiStar
continuously communicates with guests who
have previously visited SkiStar’s destinations.
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’ preparations
prior to their winter holiday. 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 various media
channels; both current and potential guests are,
thus, reached by SkiStar’s marketing via digital
billboards, linear television, online advertising,
social media, local advertising (see examples on
pages 32-33) and via our partners’ channels.
SALES CHANNELS, %
Destination
Advance Sales
Telephone
Web
Travel Agent
Cashier sales
4
25
2
69
Accommodation
20
68
11
1
Transport
40
56
3
1
Ski rental
5
33
2
60
Ski school
17
46
2
35
Cancellation insurance
15
67
1
17
Total
12
41
5
SkiPass
42
58
Total
42
PROPORTION OF GUESTS BY NATIONALITY, %
Åre
Vemdalen
Sälen
Hemsedal
Sweden
71
97
89
28
Trysil SkiStar totalt
37
Norway
12
0
1
33
14
8
Denmark
3
1
9
29
37
13
Finland
5
1
0
1
1
1
The UK
1
0
0
2
1
1
The Netherlands
1
0
0
2
2
1
Germany
0
0
0
3
4
1
Russia
5
1
0
1
3
2
Baltic States
1
0
0
0
0
1
Other
1
0
1
1
1
0
M AR K E TI NG AND SAL E S
72
31
Communication, digital media, examples
The Valle app
Relaunch of skistar.com in a new mobile-friendly design
The SkiStar app: Providing you with everything you need for your
stay at any of our resorts.
MySkiStar – family pages, children’s pages, special offers
Love Snow. We show Sweden in the snow via the users' own snow pictures
32
MARK ETING AND SALE S
SkiFeed: All of SkiStar’s social media streams in one place
Communication, printed media, examples
INSPIRATION FRÅN
VINTER 2013/14
Nattens
hjältar
Härliga dagar i fjällen
Tid tillsammans
Du har säkert sett dem: små ljuspunkter som
rör sig upp och ner i backarna om nätterna.
Pistmaskinerna. Förarna är nattens hjältar och
de jobbar outtröttligt tills backarna ser ut som
om de var gjorda av manchester.
TEXT OCH FOTO OLA MATSSON
PERSONPORTRÄTTET
Upptäck
MySkiStar!
STATISTIK
UTMANINGAR
ERBJUDANDEN
RABATTER
SÄLEN
ÅRE
VEMDALEN
HEMSEDAL
“GLADA BARN
– NÖJDA
FÖRÄLDRAR”
BERGET,
BYN OCH
BASGÅNGARNA
VYKORT
FRÅN
VEMDALEN
SKIDÅKNING
UTANFÖR
RAMARNA
Tävla!
TRYSIL
VINN EN PISTMASKINSTUR
ALPINA HOTELL
AV HÖGSTA
KLASS
Drömmer du eller ditt barn eller kanske barnbarn om att åka pistmaskin?
Tävla nu och vinn en exklusiv pistmaskinstur* på din skidsemester:
FRÅGA 1: Vilken är rasvinkeln för snö?
FRÅGA 2: Vad gjorde Valles snö magisk? (tips: läs mer om Valle).
Motivera med tre meningar varför just du ska vinna en tur i pistmaskin med
någon av våra pistmaskinsförare och till vilken destination din fjällresa går
i vinter.
Maila ditt tävlingsbidrag till: press@skistar.com
Märk ditt bidrag med “Pistmaskinstur”. Tävlingen pågår t o m 30/10 2013
..
..
”jag ar en riktig
snoperson”
..
.
PETTER OM PASSIONEN FOR SKIDAKNING
Han: en söderkis. Hon: en fjälltjej. När artisten och rapparen Petter träffade sin
fru Michaela var han en rookie i skidbacken. Tio år senare är skidåkning han
och familjens största intresse.
– Skidåkning är meditativt för mig, man blir ett med det man gör liksom.
ERFARENHET
Magazines
”
i den världen.
AV SOFIA JEMTHANS FOTO FREDRIK SCHENHOLM
2
För att verkligen ta del av skidåkarvärlden flyttade
003 var artisten och mångsysslaren
Petter och Michaela till Åre och gjorde en säsong
Petter en väletablerad artist med
där.
skivor som Mitt sjätte sinne och Ba– Det blev en rivstart. Som alltid när jag gör
nanrepubliken i bagaget. Med eget
något jag gillar så blev jag passionerad – taggad.
skivbolag och många järn i elden
Wegard Matsson är SkiStars backchef i Trysil och har jobbat på skidanläggningar i 30 års tid.
Det var fruktansvärt kul och jag lärde känna
levde han sitt liv i Stockholm. Då träfmånga i skidvärlden. Vi började resa en hel del, till
fade han skidtjejen Michaela.
alperna
och så, och jag har skrev en del artiklar
- Jag är ju uppväxt i stan, på söder, och där
26
till tidningar om skidåkning.
fanns ju bara Hammarbybacken som nästan aldrig
Idag är Petter och Michaela gifta och har tre
var öppen på den tiden. Ingen i min familj åkte
barn. Skidåkning är en stor del av deras liv.
skidor men det blev nån skolresa till fjällen då och
– Man kan säga att vi går in i en ny fas i vinter.
då. Och jag och mina kompisar gjorde nån skidTidigare var vi i fas ett, när man har små barn och
resa till Val d’Isère .
det mest handlar om att turas om att åka. Nu går
– Man kan säga att jag började åka skidor på
vi in i en ny fas när alla tre barnen kan åka själv
riktigt när jag träffade Michaela. Skidåkning var
och det har väl någonstans
en viktig del av hennes liv,
varit målet, att vi ska kunna
det betonade hon tidigt och
åka tillsammans allihopa.
jag vill sätta mig in i den
Under våren 2013 släppte
världen.
Petter sin tionde platta, BörSagt och gjort. 2004
jan på allt. Sommaren och
gjorde han comeback i
hösten ägnades åt turnéerbacken.
ande och skidåkningen i
– Det som hänt under
vinter blir extra värdefull.
de åren jag inte åkt var ju
– Jag är en riktig snöperatt skidorna utvecklats, det
son och uppskattar verklivar ju betydligt lättare att
gen en riktigt bra vinter.
lära sig än på 80-talet. Sen
Skidåkning är meditativt
fick jag åka med bra mänför mig, man blir ett med det
niskor och då lär man sig
man gör liksom. Och jag gilfort. Michaela rättade mig
lar hur det låter, eller hur det
i allt hur från jag stod på
När Petter gjorde comeback i skidbacken
för tio år sedan gjorde han det med besked.
inte låter när det är knäpptyst
skidorna till hur jag skulle
Tillsammans med hustrun Michaela bodde
i skogen. Nu ser jag fram
bära dem. Det är mycket
han en säsong i Åre och reste mycket till
emot en riktig skidvinter.
att lära sig.
*vinsten är en tur i en pistmaskin, ej själva fjällsemestern.
Att få till det perfekta underlaget är svårare än man kan tro.
Inte för den som kan, förstås, men för oss andra. Det tar i
genomsnitt tre år att utbilda en bra pistmaskinförare, säger
Wegard Matsson, backchef på SkiStar Trysil.
– Vårt mål på SkiStar är att ge gästerna fina skidupplevelser varje dag. Stålkanter sliter hårt på underlaget, vilket gör
att snön rör på sig en hel del mellan varje pistning. Vårt jobb
är att jämna till gropar och ojämnheter, fylla på med mer
snö där det behövs och få till en fin räfflad yta. När gästerna kommer på morgonen ska backarna vara jämna som ett
Mani benen
kan säga
jagatt få
dansgolv och det ska krypa
på dematt
av iver
sätta dit den första svängen,
säger Wegard,
som arbetat på
började
åka skidor
Trysils skidanläggningarpå
i 30riktigt
år.
när jag
Ingen backe är den andra lik. Vissa är till för barn medan
träffade Michaela.
andra är kolsvarta. Det finns backar som är så branta att
Skidåkning
var för att kunna
pistmaskinerna måste ta
hjälp av en vinsch
en viktig
köra upp och ned. Rasvinkeln
för snö del
är 45av
grader, vilket betyder att inte ens snön ligger
kvar om
är brantare än så.
hennes
liv,detdet
Att sitta i en pistmaskin
som hänger
i en stålvajer i en
betonade
hon
backe med 44 graders lutning är ingen lek. Även erfarna
tidigt och jag
förare kan ibland få en känsla av att ”nu välter den”, och då
kittlar det rejält i magen.vill sätta mig in
alperna. Idag är skidåkning en viktig del av
familjens liv.
27
NAMN
Petter Alexis Askergren
ÅLDER
39 år
SYSSELSÄTTNING
Musiker och mångsysslare
BOR
I Stockholm
Det går bra nu!
FAMILJ
Hustrun Michaela, som driver
golfanläggning, tre barn: fem, sju
och tio år gamla.
INTRESSEN
Utöver musiken så är det
skidåkning och träning.
42
Upplev fjällvärlden med det där lilla extra. Skidåkning tillsammans
med erfaren skidguide och aktiviteter som passar just dig.
Res bekvämt, själv eller tillsammans med andra livsnjutare.
Unikt paket olika veckor med boende, SkiPass, halvdags skidlektioner
med erfaren skidguide*, frukost och lunch.
43
Upplev härliga dagar i fjällen och få tid att umgås. Det bästa sportlovet
firas i fjällen tillsammans med barn och barnbarn.Veckorna 7-10 har vi
fyllt med aktiviteter och event som passar alla åldrar.
Läs mer om vårt ”livsnjutar-paket” och boka på skistar.com
Pris från 4995 kr per boende, fyra bäddar.
Läs mer och boka på skistar.com
I paketet ingår: delat boende, frukost, slutstäd, sänglinne, 4 dagars SkiPass, *3 st halvdagslektioner SkiStar Experience/erfaren skidguide
samt lunch mån tom ons. Kostnad för singelrum tillkommer.
*Gäller ej säsongspass. Prisexemplet avser 4 bäddars stuga/lgh, vecka 7 2014, med reservation för slutförsäljning. Boka på skistar.com
Vi lär barnen åka
skidor gratis*!
SkiStar SnowCamp,
vårt eget sportlov
Valles Vinterveckor
Snögubben Valle har flyttat in på alla destinationer och hans vinterveckor vecka 12-13
är ett måste för alla barn. Anmäl dina barn och låt dem uppleva Valles vinterspel, after
ski och en massa annat kul. Dessutom ingår ett par egna specialdesignade Valleskidor
till alla barn att ta med hem.
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*.
Nu lanserar vi vårt eget sportlov vecka 14-15, SkiStar SnowCamp, för barn och
ungdomar. Du kan utveckla dina kunskaper inom park, off-pist och ski-cross tillsammans
med våra grymma coacher. Vi jibbar, railar, hoppar och har galet kul! SkiStar SnowCamp
passar alla som åker de flesta backar och är sugen på nya skidäventyr.
Begränsat antal Valleskidor - Först till kvarn!
Begränsat antal platser - Först till kvarn!
Under SnowCamp-veckorna är dessutom våra destinationer sprängdfyllda med spännande
event som JOI-Jon Olsson Invitational i Åre, Tandådalen Ski Weekend, Sälen Wintergames.
Läs mer om SkiStar SnowCamp, våra event och boka på skistar.com
SE
0,-
E R BJ U DA N D E
25%
UNGDOMSRABATT*
PÅ SKIPASS, SKIDHYRA,
OCH SKISTAR
SNOWCAMPS
NO
GRATIS GRUPPSKIDSKOLA
GRATIS SKIDHYRA
GRATIS SKIPASS
GRATIS GRUPPESKISKOLE
GRATIS SKIPASS
GRATIS SKILEIE
ENG
0
SEK/
NOK
DK
DKK
0
VALLES
FREE GROUP SKIING SCHOOL
FREE SKI RENTAL
FREE SKIPASS
SKIDPAKET
GRATIS GRUPPESKISKOLE
GRATIS SKIUDLEJNING
GRATIS SKIPASS
495KR
EGNA SKIDOR
PÅ KÖPET*
*Ungdomsrabatten 25 % gäller på de Svenska destinationerna 8-15 år, de Norska 7-15 år under v.14-15, 2014.
Ange kampanjkod: CAMP2014. Gäller vid bokning minimum tre dagar och endast nybokningar.
*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
VALLES
SKIPAKKE
FRA
DKK
425
EGNE SKI MED
I PRISEN*
VALLES
SKIPAKKE
495KR
EGNE SKI
PÅ KJØPET*
*Gäller för ankomster under vecka 12-13 2014 för barn t.o.m 6 år i Norge och t.o.m 7 år i Sverige. I Valles skidpaket ingår Valleskidor inkl.
bindningar av känt skidmärke framtagna av våra skiduthyrningar att ta med hem samt hyra av pjäxor, stavar och hjälm under vistelsen.
Advertisements
M AR K E TI NG AND SAL E S
33
EMPLOYEES
34
EMPLOYEES
SKISTAR’S HR-VISION
SkiStar is to create a corporate culture
characterised by learning, high performance
standards, care, focus on guests and pride in
one’s work. Employees are to have an attitude
characterised by a willingness to adapt.
SATISFIED EMPLOYEES AND GOOD
SERVICE PROVIDE RESULTS
Motivated 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, returning customers are the foundation of SkiStar’s
profitability. SkiStar works with various programmes in order to continually improve the
service provided to our guests.
MEASURING VALUES – MAPPING OUR
TARGETS
Feedback 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 guests experience the employees’ fulfilment of SkiStar’s basic
values. The results of this mapping are reported
digitally in the form of a target map. The target
map is created over the entire duration of the
winter season and these results are monitored
on an on-going basis.
EMPLOYEE SURVEY
Every other year, SkiStar undertakes a survey
among our employees to ensure that the working environment is perceived to be enjoyable
and pleasant and, also, in order to compile
opinions on how the business can be improved.
Three focus areas are selected for the Company
to work on the basis of the results of the survey
in order to further improve, and to utilise
employee suggestions. The results of the survey
indicate that 98% of our employees enjoy
working at SkiStar and that a high percentage of them would recommend SkiStar as an
employer.
RECRUITMENT – A SEARCH FOR
VALUES
A positive corporate culture is highly valued
by those seeking employment, as confirmed
by internal interviews within SkiStar. A
jobseeker’s personal values should match the
values of SkiStar in order to provide a positive
experience for guests, employees and the
organisation. Up to 1,700 positions are filled
prior to each season. Around two thirds of
these are staffed by returning seasonal workers, while approximately 600 are filled by new
recruitments. SkiStar receives in the region
of 4,500 applications for these positions and
holds around 900 employment interviews. A
well-structured recruitment programme is one
of the strategic tools available to help build a
strong corporate culture. SkiStar has developed
an online recruitment tool based on the Company’s values. This tool makes the recruitment
process more cost-effective and increases the
quality of the selection process.
OUR WORKING ENVIRONMENT –
HOW GUESTS EXPERIENCE THEIR
ENVIRONMENT
A 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 environment.
Each destination also has a well-developed
emergency organisation with specially trained
crisis managers. During 2013/14, 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 suffering for those
affected. This applies equally to our guests, our
employees and any other stakeholders.
In the event of an emergency, the organisation is always, primarily, to address those who
are injured and any individuals accompanying
them and, secondly, to maintain confidence in
SkiStar.
EQUALITY
SkiStar works actively with issues of equality,
together with trade unions and employers’
organisations. An equality group manages
development issues.
EMPLOYEE STATISTICS
The average number of employees during the
2013/14 financial year increased by 46 (4%) to
1,134 (1,088). The distribution of employees
over the different destinations is shown in the
pie chart above. The average age of full-time
employees was 44 (44), whilst the average period of employment of full-time employees was
13 (12) years. A total of 38% (38) of the total
number of employees were women. Net sales
per employee increased by 4.2% to TSEK 1,470
(1,535). The number of full-time employees as
per 31 August was 438 (430) and the employee
turnover among full-time employees shows that
40 (41) have entered employment and 32 (31)
have terminated their employment during the
financial year. Expressed as full-time equivalents, the figure was 424 (416). During the peak
season, SkiStar had a total of 2,452 (2,330)
employees. The portion of full-time employees
with higher education qualifications was 17%
(17), as per 31 August 2014, and SkiStar’s
investment in skills 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.
DISTRIBUTION BY AGE, permanent employees
>60
20-29
30-39
50-59
40-49
PERMANENT EMPLOYEES, per destination
Trysil 15%
Staff incl property
development 20%
Hemsedal 12%
Sälen 26%
Vemdalen 7%
Åre 20%
AVERAGE NUMBER OF EMPLOYEES
Persons
1 200
1 000
800
600
400
09/10
10/11
11/12
12/13
13/14
NET SALES per employee, TSEK
TSEK
2 000
1 500
1 000
500
09/10
10/11
11/12
12/13
13/14
E M P LOYE E S
35
OUR RESPONSIBILITY
36
OU R RES PONSIBILITY
CODE OF CONDUCT
SkiStar 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 stakeholders, and contains guidelines for environment
and social responsibility. The table on the
following page presents a number of examples
of stakeholders.
OUR AREAS OF RESPONSIBILITIES
SkiStar operates in three primary areas of
responsibility where the environment and
social responsibility form the basis of Our
Responsibility, while Health and Active Lifestyle constitute the more niche areas where
SkiStar has greater opportunities to actively
make a difference.
By working earnestly with sustainability
issues within the framework of the operations’
focus areas, we want to make ethical, social,
environmental and economic concerns an integral part of the day-to-day work within SkiStar.
HEALTH
&
ACTIVE LIFESTYLE
SOCIAL
ENVIRONMENT RESPONSIBILITY
SKISTARS PRINCIPLES REGARDING
OUR RESPONSIBILITY
SkiStar follows four principles for how the
Company should work regarding Our Responsibility.
Consciously choose focus areas
Practice as we preach
Actively communicate about Our Responsibility
Strengthen the SkiStar brand and drive sales
ENVIRONMENT
Environmental policy
SkiStar shall take the environment into consideration 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:
Live in symbiosis with the environment in
which we operate
Do as little damage to our physical environment as possible.
Make every effort to continually minimise
each significant negative environmental
impact.
Maintain the natural beauty of the mountain
environment.
Design and select products and services
in such a manner as to limit their environmental impact during purchase, production, utilisation and disposal
Design processes to ensure the application of
the most appropriate alternative.
Train the people working with purchasing
products and services.
Continually strive to improve employees’
environmental knowledge and awareness
Continuously educate and inform all personnel within our questions of responsibility.
Allow personnel to be ambassadors of
SkiStar.
Energy policy
It is SkiStar’s goal to conduct operations
adapted to the environment with as low energy
consumption 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
abiding by the rules and regulations applicable
to the operations regarding energy utilisation.
Examples of implemented environmental
and energy efficiency measures
Follow-up on carbon dioxide (CO2) emissions caused by the operations. See the table
on page 39.
The operations of SkiStar are geographically
dispersed and, therefore, physical meetings
are replaced by telephone, web or video
conferences whenever possible.
SkiStar buys its electricity and heating, to
the greatest extent possible, 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, operates three heating plants, two heating plants
in Sälen, in Lindvallen and in Tandådalen, as
well as one in Hemsedal.
Planning work for recapturing excess heat
from the compressors used for snow-making
so it can be recycled back into 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 construction 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 systems – so-called “Ski In – Ski Out” – which
means less car travel at the destinations.
O UR R E S P O NS I BIL IT Y
37
SOCIAL RESPONSIBILITY
The 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 principles encompass regulations regarding respect
for basic human rights, labour laws – including
regulations against child labour and forced
labour – corruption measures and environmental 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. Consequently, SkiStar supports the UN Millennium Development 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.
Examples of SkiStar’s initiatives in the field of
social responsibility
Continuous work with customers and
employees’ health and safety at SkiStar’s
destinations. This takes the form of working
environment organisations and working
environment plans for each destination.
Trygg Hansa is SkiStar's official safety partner on the ski slopes and jointly ensures that
guests have a safe and secure ski holiday.
Stimulate young people’s first contact with
the workplace. Over the last ten years,
SkiStar has given over 11,000 youths
between the ages of 18 and 24 the opportunity to put their foot on the first rung of the
ladder and gain work experience.
38
OU R RESPONSIBILITY
Stimulate growth in sparsely populated
areas.
HEALTH AND ACTIVE LEISURE TIME
– SUSTAINABLE GOOD HEALTH
As 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. This is about
both stimulating growth in activities linked to
the mountain and also providing opportunities
and inspiration for 52 weeks of exercise. 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 community MySkiStar is an example of a service
that SkiStar has introduced to seize upon and
reinforce the guests’ interest in alpine skiing as
a means of exercising and socialising.
Examples of initiatives related to health
and active lifestyle
“Valle’s phenomenally smart weeks”. During
these weeks, skiing, ski school and ski rental
are free for children up to 7 years of age
(6 in Hemsedal and Trysil). This is to inspire
parents and children to try an active and
healthy lifestyle.
For five years in a row, SkiStar has been the
main sponsor of the SkiStar Swedish Open,
as a means for conveying the fun of skiing
outside the winter season, but also to inspire
new skiers to try the sport.
In spring 2014, SkiStar was a sponsor of the
Gran Fondo cycle race in Stockholm, aiming
to increase interest in both skiing and the
summer sport of cycling, as well as to inspire
an active and healthy lifestyle.
In February 2015, SkiStar will, for the first
time ever, arrange the ”SkiStar Everest Challenge” at the Hammarbybacken ski slope in
Stockholm. Participants will be challenged
to cope with a simulated snowstorm taking
place on Mount Everest’s Lhotse face.
National ventures and local involvement
SkiStar 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 initiatives
and activities. Below are some examples:
CLIMATE TREND, TONNES CO2/MSEK
4
3
2
1
0
09/10
10/11
11/12
12/13
13/14
REPORTED CO2 EMISSIONS, TONNES
13/14
12/13
11/12
10/11
5,353
5,219
4,985
5,028
Transportation**
98
114
90
80
Heating***
73
105
131
84
Electricity****
68
130
0,03
0
5,592
5,568
5,206
5,192
Fuel*
Total
*Large amounts of snow (with increased need for grooming) and an increase in the number of vehicles,
have contributed to higher consumption.
**The number of trips has decreased slightly.
***Refers to district heating. A mild winter and improved control and regulation technology for heating and
ventilation contribute to reduced consumption.
****A mild winter and improved control and regulation technology for heating and ventilation contribute
to reduced consumption. The difference between the 2011/12 and 2012/13 seasons is due to changes to
measurement methods applied by suppliers.
EMpLOYEES
EXAMPLES OF
KEY ISSUES
EXAMPLES OF MANAGEMENT WITHIN
SKISTAR
Service
Guest surveys as a basis to improve
customer satisfaction.
Safety
Thorough safety routines. Crisis management policy, with an established plan of
action for emergencies and comprehensive routines.
Safe working environment
Diversity and equality
PARTNERS AND OTHER
Working environment policy. Continuous
improvement of the working environment,
through safety checks, inspections and
health and safety plans.
Equality plan that protects the equal
rights of all employees and promotes
increased diversity.
Freedom of competition
Policy concerning bribery to ensure that
employees do not participate in activities
that hamper competition.
Company security
IT and security policy ensuring that all
usage of IT and phone systems is in the
interest of the Company.
STAKEHOLDERS
SHAREHOLDERS
Panta Mera (Swedish can and PET bottle recycling
drive). At the destinations, cans and PET bottles are
collected in containers and igloos labelled “Panta
Mera”. The return on the cans is donated by SkiStar
to the project “Alla på snö” (Snow for Everybody).
Participating in the climate change manifestation
“Earth Hour” to inspire guests and employees to
conserve energy for a brighter future.
STAKEHOLDERS
GUESTS
ENVIRONMENT
Financial reporting and
information affecting
share value
Insider information and
insider trading
SOCIAL RESPONSIBILITY
“Min Stora Dag” (My Big Day) works with granting
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, socialise, share experiences,
and be together. Stefans Stuga is an initiative of the
Stefan Paulsson Cancer Fund.
HEALTH AND
ACTIVE LIFESTYLE
“Snow for Everyone”, a collaboration between
the Swedish Ski Association and the Swedish Ski
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 are communicated.
Council, aimed at inspiring children to an active and
Employees with access to insider information are covered by the Insider Trading Act.
resources for training and competing.
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
O UR R E S P O NS I BIL IT Y
39
THE SKISTAR SHARE
THE SKISTAR SHARE HAS BEEN LISTED
ON THE STOCKHOLM STOCK
EXCHANGE SINCE 1994.
HISTORY
The 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 STRUCTURE
On 31 August 2014, 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
SALES
During the financial year 2013/14, the share
price increased by SEK 3.25 (4%) to SEK 84.25.
The Stockholm Stock Exchange’s total index
(OMXS) increased by 17% during the same
period. Since the Company was listed in 1994,
the market price has increased from SEK 9 to
SEK 84.25. During the same period, dividends
have been provided at SEK 48.19 per share,
including a dividend of SEK 2.50 proposed by
the Board for the 2013/14 financial year. During the period 1 September 2013 to 31 August
2014, a total of 9,738,554 (6,700,402) shares
in SkiStar were traded on the Stockholm Stock
Exchange at a value of MSEK 820 (535). The
40
T HE S K ISTAR S HARE
turnover rate for shares amounted to 26% (18),
compared to 65% (68) for the Stockholm Stock
Exchange as a whole. The lowest price of SEK
76.00 was noted on 2 February 2013, and the
highest price paid was SEK 92.50, noted on 2
February 2014. On 31 August 2014, SkiStar’s
market value amounted to MSEK 3,302 (3,174).
BETA VALUE
The beta value of SkiStar’s Class B share was
0.4 on 31 August 2014. 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 with
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 0.4, thus, implies
that the share displays less share price volatility
than the Stock Exchange, on average.
SHAREHOLDERS
According to the shareholders’ register kept
by Euroclear Sweden AB, there were 28,838
(31,162) shareholders on 31 August 2014. At
the end of the financial year, the ten largest
shareholders accounted for 65% (60) of the
capital and 75% (72) of the votes. Foreign shareholders accounted for 10% (9) and Swedish
institutional owners for 20% (21) of the capital.
The significant change in holdings amongst
major shareholders during the financial year
referred to the fact that Nordea has increased
its holding via three different funds, thereby
becoming the third largest shareholder in the
Company. Furthermore, Mats and Erik Paulsson, including their companies and families,
have increased their holdings. Swedbank and
SEB have reduced their holdings, while Investment AB Öresund, Lannebo and Catella have
all divested their shares. New, major shareholders include Didner & Gerge Småbolag, Danica
Pension and SSB Client Omnibus Ac Om7.
DIVIDEND POLICY
SkiStar’s dividend policy is to annually distribute 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
allowing a generous dividend policy, at the same
time that investments can be financed by the
Company’s own funds. The proposed dividend
of SEK 2.50 (2.50) per share corresponds to
60% (72) of income after tax, implying a direct
return of 3% (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 16 December 2014. Payment
is proposed to be disbursed through Euroclear
Sweden AB on 19 December 2014.
skistar, b-aktien
B-Share
EARNINGS AND DIVIDENDS PER SHARE, SEK
OMX Stockholm_PI
Share trading volume (1000s)
SEK
10
160
140
8
120
6
100
80
4
60
1 0000
8 000
40
2
6 000
4 000
20
2 000
0
0
09/10
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
10/11
11/12
12/13
13/14
Dividend/share
Profit/share
OWNERSHIP STRUCTURE, 31 AUGUST 2014
Holdings
Number of owners
%
Number of B-shares
Capital, %
Votes, %
15,908
55.16
379,703
0.97
0.68
101-200
6,730
23.34
1,278,526
3.26
2.30
201-1,000
4,813
16.69
2,469,814
6.30
4.44
1,001-5,000
1,146
3.97
2,445,435
6.24
4.40
5,001-10,000
95
0.33
688,854
1.76
1.24
10,001-20,000
53
0.18
761,715
1.94
1.37
20,001-50,000
37
0.13
1,170,943
2.99
2.11
50,001-100,000
17
0.06
1,248,366
3.19
2.25
100,001-
39
0.14
1,824,000
26,920,672
73.35
81.22
28,838
100
1,824,000
37,364,028
100
100
1-100
Totalt
Number of A-shares
SHARE CAPITAL DEVELOPMENT
Year and transaction
Change in
Total
Increase in
Nominal amount
Total number
share capital,
share capital,
number of shares
per share
of shares
SEK
10
500,000
1992 Established
SEK
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
4,675,450
12,779,500
1995 Split 5:1
3,241,620
2
4,052,025
2,337,725
2
6,389,750
8,104,050
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
2004 Split 2:1
250,000
2
7,089,750
500,000
14,179,500
2,450,000
2
9,539,750
4,900,000
19,079,500
200,146
100,073
2
9,639,823
9,639,823
1
19,279,646
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
12,005
19,540,039
2005 Split 2:1
2006 Conversion
19,528,034
0.5
39,056,068
24,010
0.5
39,080,078
19,528,034
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
TH E S K I STAR SH AR E
41
Aktiestruktur 2014-08-31
Class of shares
Number of shares
Number of votes
Capital, %
1,824,000
18,240,000
4.65
32.8
B 1 Vote
37,364,028
37,364,028
95.35
67.2
Total
39,188,028
55,604,028
100
100
Number of shares
Percentage
Class A Shares
Class B Shares
Capital, %
Votes, %
1,824,000
6,897,075
22.25
45.21
Erik Paulsson including company and family
8,306,667
21.20
14.94
Nordea Alfa
2,560,808
6.53
4.61
Per-Uno Sandberg
1,525,000
3.89
2.74
Lima Jordägande Sockenmän
1,240,000
3.16
2.23
Mats Qviberg including family
895,715
2.29
1.61
JPM Chase NA
767,815
1.96
1.38
Nordea Swedish Ideas Equity Fund
683,342
1.74
1.23
The Fourth Swedish National Pension Fund
434,348
1.11
0.78
Handelsbanken Fonder AB Re Jpml
365,981
0.93
0.66
Banque Öhman S.A.
338,899
0.86
0.61
Nordea Bank Norge Nominee
335,610
0.86
0.60
Mats Årjes
320,304
0.82
0.58
Swedbank Robur Småbolagsfond Norden
248,100
0.63
0.45
SSB Client Omibus Ac Om07
232,288
0.59
0.42
Skialp AS
204,068
0.52
0.37
SEB Sverigefond
201,600
0.51
0.36
Didner & Gerge Småbolag
190,000
0.48
0.34
Danica Pension
145,730
0.37
0.26
11,470,678
29.27
20.63
37,364,028
100.00
100.00
A 10 Votes
Votes, %
OWNERSHIP CATEGORIES, 31 AUGUST 2014
Category
Swedish private individuals
Swedish institutional ownership
Foreign private individuals
Foreign institutional ownership
Total
27,489,136
70.15
7,751,976
19.78
72,130
0.18
3,874,786
9.89
39,188,028
100.00
LARGEST SHAREHOLDERS 31 AUGUST 2014
Shareholder
Mats Paulsson including company and family
Other
1,824,000
Total
DATA PER SHARE
2013/14
2012/13
2011/12
2010/11
2009/10
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
39,438,028
39,188,028
39,188,028
39,438,028
39,438,028
Earnings, SEK
4.14
3.49
3.99
4.61
8.52
Earnings after full conversion
4.14
3.49
3.97
4.58
8.46
Cash flow from operating activities, SEK
9.24
10.18
7.94
9.32
13.62
39
38
37
37
38
84.25
81.00
81.25
97.50
123.75
5.50
Equity, SEK
Share price, SEK, 31 Aug
2.50
2.50
2.50
3.50
P/E ratio
20
23
20
21
15
Share price/cash flow
9.1
8
10.2
10.5
9.90
Share price/equity, %
215
214
219
261
324
Direct return, %
2.97
3.1
3.1
3.6
4.4
Dividend, SEK
42
T HE S K ISTAR S HARE
SHAREHOLDER
BENEFITS
SHAREHOLDERS IN SKISTAR
ARE ENTITLED TO A WIDE
RANGE OF BENEFITS
Shareholders with at least 200 SkiStar shares are
entitled to discounts at all of SkiStar’s 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 is to book everything on
skistar.com and, as a registered customer at
SkiStar, have the discount deducted directly.
SkiStar's customer database is updated monthly
to match Euroclear Sweden AB's shareholder
register, 10 business days after the end of each
month. Remember to purchase shares well in
advance (about 5 weeks) of the holidays, in order
to ensure that the transfer has sufficient time to be
registered in the Euroclear register.
Shareholder discounts cannot be combined
with any other offers or discounts and do not apply
to shares held through an endowment insurance
or pension deposit. Matters involving foreign
shareholders and minors are handled individually,
contact aktieagarservice@skistar.com
alt +46280-880 95.
For further information regarding shareholder
discounts, visit skistar.com.
EXAMPLE
On 2 September 2013, Kristina purchased 200 SkiStar shares for SEK 16,550. 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 2014, Kristina had received the following returns and benefits from her SkiStar shares.
Dividend
SEK 2.50/share x 200 shares
+ SEK 500
15% discount
2 x 6-8 day adult SkiPasses at SEK 1,765 each plus
on family SkiPasses 2 x 6-8 day child SkiPasses at SEK 1,410 each
+ 952 SEK
15% discount
on family ski hire
2 x 6-8 day complete set of adult ski equipment of average quality at SEK 895 each plus
2 x 6-8 day complete set of children’s ski equipment of average quality at SEK 595 each
+ 447 SEK
15% discount on
family ski school
4 x 5-day group ski school courses at SEK 960
+ 576 SEK
Total return, SEK
2,475 SEK
Total return, %
15%
S H AR E H O L D E R B E N E F ITS
43
OPERATIONS
Operations have been divided into two business areas
– Destinations and Property Development
legal organisation
skistar ab (publ)
91%
skistar norge as
fjällinvest ab
fjällinvest
norge as
44
OPERATIONS
sälens
högfjällshotell ab
fjällförsäkringar ab
hammarbybacken
LEGAL ORGANISATION
The majority of the Destinations business
area’s operations in Sweden are run by the Parent Company, SkiStar AB (publ). Operations
in the 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 ORGANISATION
SkiStar’s operations during the financial year
have been divided into the two business areas
and a number of staff functions. The Destinations 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 consisted
of the CEO, CFO, Marketing and Sales Director
and three Resort Managers, one for Åre-Vemdalen, one for Norway and one for Sälen.
As of 1 September 2013, the business area
Property Development has been run cooperatively by Group management and the Resort
Managers, and all properties are reported
separately from the destinations for Sweden
and Norway, respectively, and for SkiStar as a
whole.
STAFF FUNCTIONS
To make the best use of SkiStar’s combined
resources and maximise efficiency, a number
of functions have been centralised (see the
organisational chart below):
Economy/Finance/IR/Purchasing/Personnel
Marketing /PR/Sales /CSR/IT/SkiStar
Vacation club
PROPERTY DEVELOPMENT BUSINESS
AREA
SkiStar’s Property Development business area
is responsible for generating growth in accommodation at SkiStar’s destinations, increasing
the value of assets through development, preparing 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 development
land. More information about SkiStar’s Property
Development business area is found on pages
26-29.
DESTINATIONS BUSINESS AREA
Our Destinations business area is responsible
for the operation of SkiStar’s alpine destinations
and is made up of the strategic product areas,
Alpine Skiing/Lifts/SkiPass, Accommodation
mediation, Ski rental and Ski schools, all of
which lie at the heart of SkiStar’s concept. The
business area is presented on pages 18-25.
OPERATIVE organisation
CEO/GROUP Ceo
EConomy/Finance/IR/
purchasing/Personnel
property/land development
marketing/PR/sales/csr/it/
skistar vacation club
DEstinations
O P E R AT IO NS
45
ANNUAL REPORT
SkiStar AB (publ)
1 september 2013 – 31 august 2014
46
ANNUAL REPORT
ANNUAL R EP O RT
47
ADMINISTRATION REPORT
ADMINISTRATION REPORT
The Board of Directors and CEO of SkiStar AB
(publ), Corporate Identity Number 5560936949, hereby present the annual report and
consolidated accounts for the financial year
1 September 2013 – 31 August 2014.
BUSINESS NAME AND REGISTERED
OFFICES
The Company’s business name is SkiStar
AB (publ). The Company has its registered
offices in the Municipality 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 OPERATIONS
SkiStar operates alpine ski resorts 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. Operations are divided into
two business areas, Destinations and Property
Development. The Business Area Destinations
is divided into Sweden and Norway, and operations primarily include skiing, accommodation services, ski schools and ski rental. The
Property Development business area includes
construction and development.
SkiStar’s vision is to create memorable
winter experiences as the leading operator of
European alpine skiing destinations.
OWNERSHIP STRUCTURE
SkiStar’s Class B shares have been listed on the
Nasdaq OMX Mid Cap Stockholm Exchange
since 1994. As per 31 August 2014, there were
28,838 (31,162) shareholders, according to
Euroclear Sweden AB.
Major shareholders are Mats Paulsson,
including company and family, who holds
22.25% of the capital and 45.21% of the votes,
Erik Paulsson, including company and family,
who holds 21.20% of the capital and 14.94% of
the votes and Nordea Alfa which holds 6.53%
of the capital and 4.61% of the votes. The
significant change in holdings amongst major
shareholders during the financial year was that
Nordea has increased its holding via three different funds, thereby becoming the third largest
shareholder in the Company. Furthermore,
Mats and Erik Paulsson, including their companies and families, have increased their holdings.
Swedbank and SEB have reduced their holdings, while Investment AB Öresund, Lannebo
and Catella have all divested their shares. New
major shareholders include Didner & Gerge
Småbolag, Danica Pension and SSB
Client Omnibus Ac Om7.
THE SKISTAR SHARE
There are a total of 39,188,028 shares, of which
1,824,000 are Class A shares, entitling the holder to ten votes per share and 37,364,028 are
Class B shares, entitling the holder to one vote
per share. The highest noted share price during
the financial year was SEK 92.50, on 2 February
2014, and the lowest noted share price was SEK
76.00, on 18 December 2013. The share price
on balance sheet date, when the market closed,
was SEK 84.25. At the Annual General Meeting
on 14 December 2013, the Board of Directors
was authorised to to resolves 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 DEVELOPMENT
During the 2013/14 season, SkiPass sales
in Sweden decreased by 9% to MSEK 1,152
(1,267), according to the Swedish Ski Lift
Organisation (SLAO). The average price
increase for a SkiPass in Sweden was 4.17%. In
Norway, sales of SkiPasses decreased by 6.12%
to MSEK 920 (980). The average SkiPass price
increase in Norway was 2.5%.
%
15
20
10
10
5
0
09/10
48
10/11
ADMINISTRAT ION RE PORT
CASH FLOW
Cash flow from operating activities before
changes in working capital amounted to MSEK
383 (363) and cash flow after changes in working capital amounted to MSEK 362 (399). Cash
flow for the period from investing activities was
MSEK -197 (-144) and from financing activities
was MSEK -165 (-268).
RETURN on capital employed, %
OPERATING MARGIN, %
30
OPERATIONS
The Group’s net sales increased during the
financial year to MSEK 1,667 (1,665), and
were impacted negatively by an amount of
MSEK 25, compared with the previous year, in
conjunction with the translation of the weaker
Norwegian krona. The average price increase
during the year amounted to 2.8%. The number
of skier days, comprising one day’s downhill skiing with a SkiPass, amounted to 4.2 (4.3) million. The booking volume for accommodation
owned and mediated by SkiStar decreased 1%
and amounted to 481,000 (486,000) overnight
stays. The occupancy level was 73% (74). Operating income increased by MSEK 14, or 6%, to
MSEK 233. The increase in operating income is
attributable to increased capital gains, mainly
referring to properties, and to reduced losses in
associated companies.
Operating income from operations in the
Property Development business area increased
by MSEK 38 to MSEK 66 (28), where the losses
in the associated companies, primarily the
hotels in Trysil, decreased by MSEK 22 and
capital gains increased by MSEK 19 to MSEK
57 (38).
Operating income from the operations in
the Destinations business area decreased by
MSEK 26 to MSEK 166 (192). The increase in
expenses refers to personnel and rent. The largest single declines in income were seen in Åre
in Sweden and in Hemsedal in Norway.
Income before tax increased to MSEK 179
(160) and income after tax to MSEK 162 (137).
Earnings per share amounted to SEK 4.14 (3.49).
11/12
12/13
13/14
%
0
09/10
10/11
11/12
12/13
13/14
LIQUIDITY AND FINANCING
The Group’s available cash and cash equivalents amounted to MSEK 27 (26) MSEK. Unutilised credit facilities amounted to MSEK 187
(193). Net interest-bearing liabilities amounted
to MSEK 2,073 (2,107), a decrease of MSEK
34. Average interest amounted to 3.0% (3.2)
during the financial year, with the decrease
being attributable to a lower level of pledging
and lower market rates. Net financial liabilities
as per 31 August were MSEK 1,815 (1,904), a
decrease of MSEK 89. The equity/assets ratio
improved to 39% (38).
INVESTMENTS, DISPOSALS AND
OTHER ACQUISITIONS
Investments during the period amounted to
MSEK 250 (183) gross, and MSEK 197 (144)
net. Depreciation/amortisation during the
same period was MSEK 205 (219). Investments
referred mainly to lifts, snow-making systems,
replacement investments, cash systems and
concept development. Fixed assets, including
shares in Vacation Club, have been sold at a
total value of MSEK 113 (56).
RISKS AND OPPORTUNITIES
Operational risks
Seasonal dependency
The large 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
work force. The major portion of the winter
bookings is made before the start of the season.
With an increased portion of sales taking place
on an advance basis, the closing of business
transactions takes place at an earlier point in
time which, in turn, decreases the risks in the
operations.
Climate and weather dependency
The number of guests at SkiStar’s destinations
is affected by weather and snow conditions. A
late winter with fewer periods of cold weather
and natural snow by Christmas results in lower
demand. A lower demand can also arise in winters with long periods of cold weather and good
snow conditions in the southern, more densely
populated parts of Scandinavia, as snow, cold
weather and skiing are available closer to
home. In the long term it is, however, positive
for the industry that skiing can be offered in all
of Scandinavia, as this is when many a young
child first develops an interest in skiing. SkiStar
manages these risks by constantly developing
its snow systems to ensure skiing and, through
strategic sales, ensuring that the major portion
of the accommodation capacity is booked
before the Christmas week, when the high
season starts. The results of the greenhouse
effect have been under debate for a number of
years. The majority of researchers agree that
global warming is taking place, but it is very
difficult to predict the regional and local effects
of this, which implies that certain regions can
experience unchanged, or even decreasing,
temperatures. A milder climate can, in the
long term, imply shorter winter seasons with
later winters and earlier springs. For example,
should SkiStar’s destinations begin the season
one week later and end one week earlier, the
Company’s income would be only marginally
impacted, as the majority of guests visit the
destinations between Christmas week and the
middle of April. The Group’s weather risks are
limited due to the fact that the destinations
are geographically located at different sites
with varying weather conditions and types of
climate. SkiStar’s destinations are developing
at a fast pace in terms of snow-making systems
in order to ensure, both in the short and long
term, good skiing conditions for our guests for
the duration of the entire winter season.
EQUITY/ASSETS RATIO, %
50
The economic climate
Changes in peoples’ disposable income impact
private consumption which, in turn, has an
impact on peoples’ travel patterns during the
winter season. SkiStar’s historical sales and
earnings trend shows that the Company has
been able to deal with these swings in the
economic climate. A major portion of SkiStar’s
guests is comprised of families who, to a large
degree, return year after year and who see a
winter holiday as a high priority. Dependency
on the economic climate in Sweden is decreasing, in that the Company also has operations in
Norway.
Competition
Sun and beach holidays and weekend breaks
to large cities are considered to comprise the
major competitors to SkiStar holidays, but
other industries also compete for peoples’
disposable income, such as durable goods and
investments in the home. Other competitors
are comprised of alpine skiing resorts in Scandinavia and the Alps. The alpine ski industry
has a high entry threshold, which limits
competition. Through extensive investments in
service-focused personnel, leadership, modern
lifts and snow systems, IT, restaurants, etc.,
SkiStar’s alpine destinations maintain a high
level of quality, where the guests’ winter experience and comfort is further enhanced each and
every year.
SkiStar’s destinations have good access to
populated areas through their geographical
proximity and value for money transportation
solutions in the form of trains, aeroplanes and
buses. SkiStar’s customers have easy access to
SkiStar’s offering of products and services via
online marketing and sales systems, which simplifies the booking process for the client. Other
important competition factors are a strong
financial position, recognised and attractive
brands and a strong cash flow.
RETURN on equity, %
%
30
40
20
30
10
20
%
0
09/10
10/11
11/12
12/13
13/14
09/10
10/11
11/12
12/13
13/14
AD M I NI STR ATI O N R EP O RT
49
Expansion
SkiStar’s strategy for growth includes, on the
first hand, increased efficiency in the utilisation
of existing destinations and the development
of the products and services offered. On the
second hand, growth is to be achieved through
acquisitions or the leasing of other ski resorts.
All acquisitions undertaken by SkiStar have
developed well and have, to a large degree, contributed to SkiStar’s successful development.
During 1997, Tandådalen & Hundfjället AB was
acquired, in 1999 Åre-Vemdalen AB, in 2000
Hemsedal Ski-senter AS and in 2005, Trysilfjellet Alpin AS.
Accommodation capacity
and occupancy level
The profitability of alpine destinations is
dependent on the number of available beds and
the occupancy level. For SkiStar it is important
to have control over a large accommodation
capacity in order to optimise occupancy levels
by following changes in demand and setting the
right price for accommodation across all parts
of the season. SkiStar works actively to increase
the number of beds at the destinations and to
increase the portion which is mediated through
SkiStar. It is also important that older cabins
and apartments are modernised to maintain a
high demand. In addition to SkiStar’s investments, new investments in cabins and apartments are primarily undertaken by external
parties or jointly-owned companies. The high
value assigned to SkiStar’s destinations attracts
investment capital, which leads to long-term
growth in the number of beds made available
and to the development of a variety of types of
accommodation.
Personnel
Payroll expenses are the Company’s single
largest expense item. SkiStar’s continued success is dependent on motivated and engaged
personnel. SkiStar works with a leadership
development and an incentive programme in
order to retain key personnel.
SkiStar’s Company management is comprised of the CEO, CFO, Marketing and Sales
Manager, Resort Manager for the Norwegian
Hemsedal and Trysil destinations, and two
Resort Managers in Sweden, one for Åre and
Vemdalen and one for Sälen who, together,
owned 450,200 Class B shares in the Company
as at 31 August 2014.
SkiStar works with leadership issues in
order to increase efficiency, conscientiousness
and engagement amongst employees. The level
of service that guests receive from our personnel plays a huge role in their overall experience.
Consequently, there is a risk that the possibility
of recruiting qualified seasonal personnel
decreases during a strong economic period
when unemployment is low.
Security issues
SkiStar works actively with security issues by
identifying and addressing the potential risk of
accidents and by proactively managing working
50
ADMINISTRAT ION RE PORT
environment issues. Continual risk analyses
are undertaken at all destinations in order to
minimise the various types of risk and to ensure
that the insurance cover is correct. SkiStar also
has an all-inclusive, well-formulated crisis plan
to ensure that the Company is prepared for any
possible accidents and incidents.
Financial risks and opportunities
Foreign exchange risk
The fluctuation of domestic currencies against
foreign currencies impacts travel habits and
can, thus, affect the number of guests at
SkiStar’s alpine destinations. The Group is
also impacted by the exchange rate between
the Swedish krona and the Norwegian krone.
SkiStar does not hedge its Norwegian operations, although hedging can be undertaken in
conjunction with larger investments, primarily
ski lifts, snow-making systems and grooming
machines, which are predominantly undertaken in Euro. As of the autumn 2014, Norwegian
and Danish guests have been offered the possibility of booking their trips in local currencies.
Refer to Note 31 for further information.
Investments and interest rates
The alpine ski industry demands major capital
investments in order to maintain and increase
competitiveness. SkiStar has a strong cash
flow, which enables a high level of internallyfinanced investments. Should interest rates
increase, the cash flow can be used to more
quickly amortise loans and, thereby, to
decrease the financial burden on the Company.
At present, external borrowing only takes place
in domestic currencies, SEK and NOK. Net
interest-bearing liabilities amounted to MSEK
2,073 as at 31 August, of which MSEK 600 and
MNOK 200 has been hedged through interest
rate derivatives with maturities of 3, 5 and 10
years (remaining terms 2, 7 and 8 years). Refer
to Note 32 for further information.
Other risks and opportunities
Electricity costs
SkiStar’s operations entail the consumption
of large amounts of electricity. Changes in the
price of electricity consequently impact the
Group’s expenses and financial results. According to the established policy, the majority of
the Group’s electricity consumption should
be locked in at a fixed price or local price.
Electricity prices for the 2013/14 season had
been locked in at fixed prices by approximately
30% and local electricity producers provided
approximately 65% of the Group’s electricity
consumption at local prices or via fund management, which is usually less than the market
price on the Nordpool electricity exchange. The
local price is subject to a significantly lower
level of fluctuation than market prices and the
fund price is locked in at a fixed price in the
quarter prior to initiation of the consumption
of energy. Approximately 5% of the expected
electricity consumption for 2014/15 is directly
impacted by fluctuations in the market price.
During the next financial year, it is expected
that 1.5% of SkiStar’s total energy requirement
will come from wind power turbines in Dalarna,
where SkiStar is a joint-owner. SkiStar operates,
together with other investors, three thermal
power plants, two in Sälen, in Lindvallen and
Tandådalen, and one in Hemsedal. The thermal
power plant in Lindvallen provides energy
to buildings in Lindvallen’s southern area. In
Hemsedal, the thermal power plant supplies the
entire Alpine Lodge with energy and has been
adapted for future needs in the Fjellandsby
area. The thermal power plant is driven on
locally-produced, renewable wood fuel.
Fuel prices
Many of SkiStar’s guests drive their own cars
to the destinations. These travel habits are
impacted by fuel prices and taxation on company cars. The alpine destinations’ close vicinity
to populated areas and the availability of other
travel alternatives, such as trains, decreases
the negative consequences of increased fuel
prices. New cars, with significantly more
energy-efficient engines, are also a positive
development, as they lower travel costs.
Legislative and regulatory amendments
Changes in laws and ordinances impacting
SkiStar’s operations can, of course, affect these
operations and the Company’s financial performance. Today, the Company has no knowledge
of impending legislative and regulatory amendments which would have any significant effect
on the Company, except for the following:
A re-introduction of full employer’s contributions for youth employees is expected to
have a negative impact of approximately
MSEK 15.
The regulations on tax exemptions for operations located on specially assessed property
are to be revoked. SkiStar has applied these
rules in its Swedish operations. This change
implies that from financial year 2014/15, the
entire income reported in the Swedish operations will be taxed. SkiStar AB has, at the
same time, MSEK 785 in unutilised losses carried forward, implying that the Company does
not expect to pay tax for a number of years.
ONGOING DISPUTES
SkiStar has been taken to court, on a joint and
several basis, with two former Board members
of Spray AB, in conjunction with the sale of
a company which took place prior to SkiStar
acquiring 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 15, plus interest.
SkiStar has not reserved any expenses in relation to this dispute, as it is not considered likely
that CA Fastigheter’s claim will be upheld.
SENSITIVITY ANALYSIS
The sensitivity analysis below describes how
the Group’s results are impacted by changes in
a number of variables important to the Group.
The assumptions regarding the impact on
income through changes in occupancy levels
are based on all of the mediated objects and
refer only to the impact on sales of SkiPasses.
Any changes in other categories of revenue
are assessed as being neutralised by increased,
respective decreased, expenses. In calculating the sensitivity of a change in the price of
electricity, consideration is only given to that
portion of the electricity consumption which is
directly impacted by the change in the market
price. In calculating the sensitivity of a change
in interest rate levels, consideration has been
given to the loans affected by the change in
interest rates.
FORECASTS
As in previous years, SkiStar has decided not to
provide an earnings forecast. Instead, interim
reports provide the information regarding the
prevailing booking levels.
PERSONNEL
The average number of employees during the
financial year was 1,134 (1,088), an increase
of 46. This increase is primarily attributable
to the longer season. Each destination has an
organisational structure for addressing the work
environment and equality issues. These groups
are coordinated centrally and have common
governing documents, such as an equality of
employment plan and working environment
policy. Expenses for skills development during
the financial year amounted to MSEK 3 (3), and
refer primarily to internal training. Personnel
turnover among permanent employees was
comprised of 40 individuals commencing
employment and 33 terminating their employment (41 and 31, respectively). The Board
of Directors’ proposed guidelines regarding
remuneration to senior management, subject
to a resolution by the Annual General Meeting
in December 2014, will correspond to the
guidelines stated in Note 8 and which remain
applicable.
ENVIRONMENTAL IMPACT
SkiStar’s operations have a certain environmental impact. The Company works actively
to minimise the impact of its operations. A
joint environmental management system and a
basic policy form the foundation of the environmental work. The environmental policy entails
that, in striving to offer its guests a memorable
winter experience, SkiStar takes the environment into consideration in all its operations.
Via systematic improvement activities, guests
shall experience SkiStar as the environmentally
sound choice. SkiStar monitors the carbon
dioxide (CO2) emissions produced by its
operations and annually measures the amount
of CO2 emitted by its operations in relation
to sales. In the financial year 2013/14, SkiStar
emitted 3.35 tonnes of CO2/MSEK (3.34).
On 22 August 2006, the energy management
system for snow-making 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.
PARENT COMPANY
The Parent Company’s net sales amounted to
MSEK 1,187 (1,148), and income before tax
to MSEK 121 (147). Investments amounted
to MSEK 125 (98). The majority of the Swedish operations are conducted in the Parent
Company.
CORPORATE GOVERNANCE
Details regarding the Group’s corporate governance can be found in a separate corporate
governance report, see page 84.
PRIOR TO 2014/15
The fantastic summer has generated an
increase in bookings of skiing holidays, as a
result of which accommodation bookings for
the coming season are five percent higher than
during the previous year. The school holiday
periods remain strong, and the low periods in
between these holidays have seen more bookings than last year. The calendar is beneficial,
allowing for consecutive holiday days over
Christmas and the New Year, and with Easter
falling at the beginning of April.
During the autumn of 2014, efforts to
enhance efficiency and achieve economies of
scale within the Group have intensified. These
efforts will include all destinations and areas of
the operations where savings and economies of
scale are possible.
SENSITIVITY ANALYSIS
Change
Impact on income
Bookings
+/- 10%
+/- 51 MSEK
SkiPass prices
+/- 10%
+/- 92 MSEK
+/- 1%
+/- 10 MSEK
Interest
Payroll expenses
Market price of electricity
Currency NOK/SEK
+/- 10%
+/- 50 MSEK
+/- 10 öre
+/- 0 MSEK*
+/- 10%
+/- 2 MSEK
* As good as all estimated consumption is hedged at a fixed price, for which reason a change in the price would
have a negligible impact on income.
INCOME BEFORE TAX, by period, TSEK
DISTRIBUTION OF NET SALES, %
Other 10%
Sporting Goods Outlets4%
Ski School/Activities 3%
-264,792
-268,594
434,643
415,675
March-May
159,023
185,793
-149,694
-172,887
June-August
Ski Rental 8%
2012/13
December-February
September-November
Property Service 8%
2013/14
Accommodation 11%
SkiPass 56%
APPROPRIATION OF PROFITS
Proposed appropriation of the Company’s profits. The Board of Directors proposes that the available profits of
1,010,458,766, be appropriated as follows:
Dividend, 39,188,028 shares x SEK 2.50
To be carried forward
(of which share premium reserve
Total
97,970,070
912,488,696
4,242,533)
1,010,458,766
AD M I NI STR ATI O N R EP O RT
51
definitionS
RETURN ON EQUITY
Income after tax as a percentage of average
equity.
AVERAGE INTEREST EXPENSES
Interest expenses/average interest-bearing
liabilities.
FINANCIAL YEAR
SkiStar’s financial year comprises the period
1 September –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
BOOKING VOLUME
A comparison of the number of booked overnight stays between two defined periods.
GROSS MARGIN
Operating income before depreciation/amortisation as a percentage of net sales.
SHARE DIVIDEND YIELD
Dividends divided by share price.
CASH FLOW
Cash flow before changes in working capital.
INTEREST COVERAGE RATIO
Income after net financial income plus financial
expenses as a percentage of financial expenses.
SHARE PRICE/CASH FLOW
Share price on reporting date divided by cash
flow per share.
LIQUID RATIO
Current assets including granted but unutilised
credit facilities, less inventories, as a percentage
of current liabilities.
SHARE PRICE/EQUITY
Share price on the reporting date divided by
equity per share.
ALF
Alpinanleggenes Landsforening (the Norwegian
Lift Association).
CASH FLOW PER SHARE
Cash flow divided by the average number of
shares.
CURRENT RATIO
Current assets including granted, but
unutilised, credit facilities as a percentage
of current liabilities.
DEBT/EQUITY RATIO
Interest-bearing liabilities as a percentage
of equity.
EARNINGS PER SHARE
Net income for the year attributable to the
shareholders in the Parent Company divided
by the average number of shares.
EARNINGS PER SHARE AFTER FULL
CONVERSION
Net income for the year attributable to the
shareholders in the Parent Company, adjusted
for interest expenses after taxes accrued on
convertible debentures, divided by the number
of shares after full conversion of subscribed
convertible debentures.
EQUITY PER SHARE
Equity divided by average number of shares for
the reporting period.
52
Definitions
NET MARGIN
Income before tax as a percentage of net sales.
OCCUPANCY LEVEL
Accommodation bookings as a percentage of
the beds mediated by SkiStar at 100% capacity
during the period beginning the third week of
December and ending the third week of April.
OPERATING MARGIN
Operating income after depreciation/ amortisation as a percentage of net sales.
OVERNIGHT STAY
One booked night in a cabin, apartment or
hotel room.
P/E RATIO
Share price on the reporting date divided by
earnings per share after tax.
RETURN ON CAPITAL EMPLOYED
expenses as a percentage of average capital
employed. Capital employed is defined as
the value of assets less non-interest-bearing
liabilities
RETURN ON TOTAL ASSETS
expenses as a percentage of average balance
sheet total.
SKIER DAY
One day of skiing with a SkiPass.
SKIPASS
Access card to ski lifts.
SLAO
Svenska Skidanläggningars Organisation
(the Swedish Ski Lift Organisation).
EQUITY/ASSETS RATIO
Equity as a percentage of balance sheet total.
FIVE YEAR OVERVIEW
FIVE YEAR OVERVIEW
Net sales and income
Cash flow
Profitability
2013/14
2012/13
2011/12
2010/11
2009/10
Net sales, MSEK
1,667
1,665
1,552
1,574
1,688
Operating revenues, MSEK
1,732
1,706
1,573
1,598
1,728
Income before depreciation/amortisation, MSEK
438
438
412
454
363
Income before tax, MSEK
179
160
139
189
347
Income after tax, MSEK
162
137
157
181
334
534
Cash flow before changes in working capital, MSEK
383
363
332
370
Cash flow after changes in working capital, MSEK
362
399
311
365
490
Cash flow after investing activities, MSEK
165
255
-11
6
247
7
6
5
7
11
11
9
11
12
23
6
6
5
6
10
Gross margin, %
26
26
27
29
34
Operating margin, %
14
13
12
15
21
Net margin, %
11
10
9
12
20
Return on equity, %
Return on total assets, %
Investments
Financial position
Liquidity
Personnel
Gross investments, MSEK
250
183
360
386
331
Net investments, MSEK
197
144
322
359
243
Balance sheet total, MSEK
3,960
3,894
4,002
3,892
3,726
Equity, MSEK
1,538
1,482
1,457
1,466
1,497
39
38
36
38
40
Debt/equity ratio
1.3
1.4
1.6
1.5
1.3
Interest coverage ratio
3.8
3.3
3.0
4.7
11.2
Current ratio, %
56
50
48
131
205
Liquid ratio, %
48
43
41
114
185
Average number of employees
1,134
1,088
1,051
1,099
1,118
Net sales per employee, TSEK
1,470
1,535
1,477
1,402
1,510
F I V E Y E AR OV E RVIE W
53
STATEMENT OF COMPREHENSIVE INCOME FOR THE GROUP
TSEK
Operating expenses
Note
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
1,665,285
Net sales
2
1,667,151
Other operating revenues
4
64,994
40,955
Total operating revenues
3
1,732,145
1,706,240
-135,509
-137,298
Other external expenses
6, 7
-637,660
-601,808
Personnel costs
5, 8
-516,782
-504,127
16
-4,468
-25,274
9
-205,083
-218,611
232,643
219,122
Goods for resale
Share of associated companies’ income
Depreciation of tangible and amortisation of intangible fixed assets
Operating income
Income from financial items
Income from securities accounted for as fixed assets
32
-591
227
Interest revenues and similar profit/loss items
33
10,250
10,444
Interest expenses and similar profit/loss items
34
Income before tax
Tax
11
Net income for the year
-63,122
-69,806
179,180
159,987
-16,857
-23,380
162,323
136,607
-30,253
13,830
OTHER COMPREHENSIVE INCOME
Items which can be reclassified in the Income Statement
22
Change in fair value of cash flow hedges for the year
Deferred tax on cash flow hedges
Net income for the year attributable to:
Total comprehensive income
for the year attributable to:
6,649
-3,647
Exchange rate differences for the year upon translation of foreign operations
14,843
-24,859
Other comprehensive income for the year
-8,761
-14,676
Total comprehensive income for the year
153,562
121,931
Shareholders in the Parent Company
162,430
136,902
Non-controlling interests
-107
-295
162,323
136,607
Shareholders in the Parent Company
153,669
122,226
Non-controlling interests
Earnings per share
Operating margin, %
121,931
Earnings per share before and after dilution, SEK
12
4:14
3:49
12
39,188,028
39,188,028
DEPRECIATION of tangible and amortisation of
intangible fixed assets
2013/14
Operating income, TSEK
-295
153,562
Average number of shares before and after dilution
QUARTERLY VALUES
Operating revenues, TSEK
-107
MSEK
Q1
Q2
Q3
Q4
Full year
65,123
1,005,943
576,259
84,820
1,732,145
-247,566
447,294
169,920
-137,005
232,643
neg
42
31
neg
14
Q1
Q2
Q3
Q4
Full year
60,704
967,859
616,139
61,538
1,706,240
-252,816
430,241
199,026
-157,329
219,122
neg
45
32
neg
13
250
2012/13
Operating revenues, TSEK
Operating income, TSEK
Operating margin, %
200
150
54
STAT EMENT OF COM PR E HE N SIV E IN COM E FOR T HE GR OU P
09/10
10/11
11/12
12/13
13/14
STATEMENT OF FINANCIAL POSITION FOR THE GROUP
ASSETS, TSEK
Fixed assets
Note
31 Aug 2014
Intangible fixed assets
13
213,833
202,103
Tangible fixed assets
14
2,877,104
2,931,034
Participations in associated companies
16
243,629
244,383
Other participations and investments held as fixed assets
17
96,165
84,636
Other non-current receivables
18
203,438
138,870
Deferred tax assets
11
Total fixed assets
31 Aug 2013
23,741
22,015
3,657,910
3,623,041
Current assets
-Inventories
- Current receivables
Goods for resale
Accounts receivable – trade
19
Tax assets
Cash and cash equivalents
68,663
61,550
68,663
61,550
31,139
30,682
17,700
29,810
79,246
Other current receivables
20
103,950
Prepaid expenses and accrued income
21
53,515
43,336
206,304
183,074
Cash and bank balances
Total current assets
TOTAL ASSETS
27,357
26,277
302,324
270,901
3,960,234
3,893,942
EQUITY AND LIABILITIES
Equity
Share capital
22
Other contributed capital
Reserves
19,594
19,594
397,573
397,573
-42,501
-33,711
Profit brought forward, including net income for the year
1,161,854
1,097,394
Equity attributable to shareholders in the Parent Company
1,536,520
1,480,850
Minority interest
Total equity
1,213
1,291
1,537,733
1,482,141
Non-current liabilities
- Non-current, interest-bearing liabilities
- Non-current, non-interest-bearing liabilities
Liabilities to credit institutions
24
1,465,339
1,435,635
Pension provisions
25
4,768
5,607
Other provisions
27
567
708
Other financial liabilities
31
38,980
9,843
5,275
5,053
11
27,833
26,039
1,542,762
1,482,885
Other non-interest-bearing liabilities
Deferred tax liabilities
Total non-current liabilities
- Current liabilities
602,925
666,171
Accounts payable – trade
82,744
64,974
Tax liabilities
21,692
18,908
Other current liabilities
86,043
79,335
Accrued expenses and deferred revenues
24
28
86,335
99,528
879,739
928,916
Total liabilities
2,422,501
2,411,801
TOTAL EQUITY AND LIABILITIES
3,960,234
3,893,942
Total current liabilities
PLEDGED ASSETS AND CONTINGENT LIABILITIES
Pledged assets
29
1,505,843
1,521,331
Contingent liabilities
29
425,529
425,277
STATE M E NT O F F I NANCI AL P OS I TI O N FO R TH E G R O U P
55
STATEMENT OF CHANGES IN EQUITY FOR THE GROUP
Equity attributable to shareholders in the Parent Company
Profit brought
forward and
Hedging
net income
reserves
for the year
GROUP, TSEK
Share
capital
Other
contributed
capital
Reserves
Opening equity, 1 Sept 2012
19,594
397,573
-2,630
-16,471
-24,793
10,183
-24,793
10,183
Other comprehensive income for the year *
Comprehensive income for the year
-
-
Total
Noncontrolling
interests
Total
equity
1,058,462
1,456,528
-
1,456,528
136,902
136,902
-295
136,607
-14,610
-66
-14,676
136,902
122,292
-361
121,931
-97,970
-97,970
Acquisition of non-controlling interest
1652
Dividend
1,652
-97,970
Closing equity, 31 Aug 2013
19,594
397,573
-27,423
-6,288
1,097,394
1,480,850
1,291
1,482,141
19,594
397,573
-27,423
-6,288
1,097,394
1,480,850
1,291
1,482,141
162,430
162,430
-107
162,323
Other comprehensive income for the year *
14,814
-23,604
-8,790
29
-8,761
14,814
-23,604
162,430
153,640
-78
153,562
-97,970
-97,970
-12,609
-29,892
1,161,854
1,536,520
1,213
1,537,733
Dividend
*
19,594
397,573
Items which can be reclassified in income for the period
56
STAT EMENT OF CHAN GE S IN E QU IT Y FOR T HE GR OU P
-97,970
CASH FLOW STATEMENT FOR THE GROUP
TSEK
Note
Operating activities
Income after financial items
Adjustments for non-cash items, etc.
30
Tax paid
Cash flow from operating activities before changes in working capital
Cash flow from changes in working capital
Increase (-) / Decrease (+) in inventories
Increase (-) / Decrease (+) in operating receivables
Increase (+) / Decrease (-) in operating liabilities
Cash flow from operating activities
Investing activities
Acquisition of subsidiaries, net impact on cash and cash equivalents
30
Acquisition of intangible fixed assets
Acquisition of tangible fixed assets
Netacquisition of financial fixed assets
Sale of tangible fixed assets
Cash flow from investing activities
Financing activities
Borrowings
Repayment of borrowings
Dividends paid
Cash flow from financing activities
Cash flow for the year
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
179,180
159,987
202,491
206,752
381,671
366,739
1,445
-3,884
383,116
362,855
-6,377
7,866
-22,344
-22,886
7,768
51,230
362,163
399,065
-
294
-13,859
-9,090
-168,222
-128,785
-39,050
-45,020
24,130
38,843
-197,001
-143,758
79,665
90,000
-146,535
-259,588
-97,970
-97,970
-164,840
-267,558
322
-12,251
Cash and cash equivalents at the beginning of the year
26,277
41,131
Exchange rate differences in cash and cash equivalents
758
-2,603
27,357
26,277
Cash and cash equivalents at year-end
CASH FLOW from operating activities, MSEK
30
CASH FLOW after investing activities, msek
MSEK
MSEK
600
250
500
150
400
50
300
-50
200
-150
100
0
09/10
10/11
11/12
12/13
13/14
-250
09/10
10/11
11/12
12/13
13/14
CAS H F LOW STATE M E NT FO R TH E G R O U P
57
PARENT COMPANY INCOME STATEMENT
TSEK
Operating expenses
Note
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
1,148,299
Net sales
2
1,186,715
Other operating revenues
4
8,344
24,504
Total operating revenues
2, 3
1,195,059
1,172,803
Goods for resale
-144,790
-83,256
-459,043
-479,533
5, 8
-366,514
-347,382
9
-118,645
-124,690
106,067
137,942
Other external expenses
6, 7
Personnel costs
Depreciation of tangible and amortisation of intangible fixed assets
Operating income
Income from financial items
Income from securities accounted for as fixed assets
32
-
384
Income from participations in Group companies
10
261
37,827
5,349
Interest revenues and similar profit/loss items, external
33
5,065
Interest revenues, Group companies
33
91
2,502
Interest expenses and similar profit/loss items, external
34
-28,079
-35,410
Interest expenses, Group companies
34
Group contribution
23
Income before tax
Tax
11
-1,038
-660
82,367
147,934
38,174
-612
120,541
147,322
-10,406
12,171
110,135
159,493
-27,120
11,948
5,966
-3,097
-21,154
8,851
88,981
168,344
OTHER COMPREHENSIVE INCOME
Items which can be reclassified in the Income Statement
Change in fair value of cash flow hedges for the year
Deferred tax on cash flow hedges
58
PARENT COMPANY IN COM E STAT E M E N T
22
PARENT COMPANY BALANCE SHEET
ASSETS , TSEK
Fixed assets
Note
31 Aug 2014
13
46,662
34,501
14
1,566,998
1,558,932
249,635
Participations in Group companies
15
249,535
Participations in associated companies
16
8,718
8,668
Other participations and investments held as fixed assets
17
13,961
12,971
Other non-current receivables
18
14,800
44,375
Deferred tax assets
11
45,051
43,684
Receivables from Group companies
26
TOTAL FIXED ASSETS
Current assets
- Inventories
- Current receivables
Goods for resale
19
Tax assets
- Cash and cash equivalents
31 Aug 2013
310,382
331,225
2,256,107
2,283,991
50,982
46,872
50,982
46,872
15,156
29,638
12,834
22,167
40,586
20
62,570
Prepaid expenses and accrued income
21
58,966
40,555
149,526
132,946
2,750
2,859
203,258
182,677
2,459,365
2,466,668
Share capital
19,594
19,594
Statutory reserve
25,750
25,750
45,344
45,344
TOTAL CURRENT ASSETS
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
- Restricted equity
- Non-restricted equity
22
Share premium reserve
4,242
4,242
Profit brought forward
896,082
855,713
Total equity
110,135
159,493
1,010,459
1,019,448
1,055,803
1,064,792
Non-current liabilities
- Non-current, interest-bearing liabilities
- Provisions
- Non-current, non-interest-bearing liabilities
Liabilities to Group companies
26
35,985
43,734
24
673,785
730,502
Pension provisions
25
4,677
3,492
Other provisions
27
567
708
Other non-interest-bearing liabilities
31
26,115
112
Deferred tax liabilities
11
131,785
125,757
872,914
904,305
Total non-current liabilities
- Current liabilities
313,396
340,000
68,695
44,646
Other current liabilities
93,655
54,632
54,902
58,293
Accrued expenses and deferred revenues
24
28
530,648
497,571
Total liabilities
Total current liabilities
1,403,562
1,401,876
TOTAL EQUITY AND LIABILITIES
2,459,365
2,466,668
PLEDGED ASSETS AND CONTINGENT LIABILITIES
Pledged assets
29
538,888
537,346
Contingent liabilities
29
1,428,803
1,343,391
PAR E NT CO M PANY B AL ANCE S H E E T
59
STATEMENT OF CHANGES IN EQUITY FOR THE PARENT COMPANY
Restricted equity
Non-restricted equity
PARENT COMPANY, TSEK
Share
capital
Statutory
reserve
Share
premium
reserve
19,594
25,750
4,242
Hedging
reserves
Profit
brought
forward
Net income
for the year
Total
equity
-8,066
952,898
-
994,418
159,493
159,493
159,493
168,344
159,493
1,064,792
8,851
8,851
-
-
-
8,851
-
19,594
25,750
4,242
785
854,928
19,594
25,750
4,242
785
1,014,421
Dividend
-97,970
-21,154
-21,154
Dividend
60
1,064,792
110,135
-97,970
-21,154
110,135
88,981
110,135
1,055,803
-97,970
19,594
25,750
STAT EMENT OF CHAN GE S IN E QU IT Y FOR T HE PA R E N T CO M PANY
4,242
-20,369
110,135
916,451
-97,970
CASH FLOW STATEMENT FOR THE PARENT COMPANY
TSEK
Operating activities
Note
1 Sep 2013
-31 Aug 2014
120,541
147,322
30
113,247
105,953
233,788
253,275
Adjustments for non-cash items, etc.
Tax paid
before changes in working capital
Cash flow from changes in working capital
-217
243,121
253,058
-4,110
3,646
Increase (-) / Decrease (+) in operating receivables
75,322
106,585
Increase (+) / Decrease (-) in operating liabilities
Acquisition of intangible fixed assets
30,115
-42,061
344,448
321,228
-13,859
-13,212
-128,381
-76,740
-
31,941
-940
-8,786
Sale / decrease of tangible assets
5,158
-
Sale / decrease of financial assets
20,011
-
-118,011
-66,797
Acquisition of tangible fixed assets
Sale of tangible fixed assets
Acquisition of financial assets
Cash flow from investing activities
Financing activities
9,333
Increase (-) / Decrease (+) in inventories
Investing activities
1 Sep 2012
-31 Aug 2013
Borrowings
Repayment of borrowings
Dividends paid
Cash flow from financing activities
Cash flow for the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at year-end
30
70,000
90,000
-198,576
-247,011
-97,970
-97,970
-226,546
-254,981
-109
-550
2,859
3,409
2,750
2,859
CAS H F LOW STATE M E NT FO R TH E PAR E NT CO M PANY
61
NOTES TO THE FINANCIAL STATEMENTS
Note 1 ACCOUNTING PRINCIPLES
COMPLIANCE WITH STANDARDS AND
STATUTORY REQUIREMENTS
The consolidated accounts have been prepared in
accordance with International Financial Reporting Standards (IFRS), issued by the International
Accounting Standards Board (IASB), as well as
the interpretation statements of the International
Financial Reporting Interpretations Committee (IFRIC), as approved by the EU. The Swedish
Financial Reporting Board’s Recommendation RFR
1 has also been applied.
The Parent Company has applied the same
accounting principles as the Group, except in the
cases stated below in the section “Parent Company
Accounting Principles”.
BASIS OF PREPARATION OF THE
PARENT COMPANY’S AND THE GROUP’S
FINANCIAL STATEMENTS
The Parent Company’s functional currency, as well
as the presentation currency for the Parent Company and the Group, is the Swedish krona (SEK).
This implies that the financial statements are presented in SEK. All figures, unless otherwise stated,
are rounded off to the nearest thousand. Assets and
liabilities are reported at historical acquisition cost
and, where appropriate, with a deduction for depreciation/amortisation, unless otherwise indicated.
Preparing the financial statements in accordance with IFRS requires that Group management
undertakes assessments and estimations, and
makes decisions regarding the assumptions influencing the application of the accounting principles
and the reported value of assets, liabilities, revenues and expenses. Such estimates 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 estimates and assumptions are then
used to assess the reported values of assets and
liabilities, which are otherwise not clearly apparent
from other sources. The actual outcome can deviate from these estimates and assumptions. Estimates and assumptions are reviewed regularly. Any
changes in estimates are reported in the period
during which the change is made. Refer to Note 37
for further information.
The accounting principles described for the
Group have been applied consistently for all periods
presented in the Group’s financial reports, 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 PRINCIPLES
Changes in accounting principles resulting from
new or amended IFRS
The changes in accounting principles applied
by the Group from 1 September 2013 are described
below. Other amended and new IFRS applying
from 1 September 2013 have had no significant
effect on the Group’s accounting.
62
NOT ES
IFRS 13 Fair Value Measurement. A new, uniform standard for valuations at fair value and
improved disclosure requirements, which has
been applied during the financial year. SkiStar’s
financial instruments are comprised of the customary items related to operating capital and
cash and cash equivalents, as well as receivables
from associated companies, interest-bearing
liabilities, derivatives and available-for-sale
financial assets. Interest-bearing liabilities
incur variable interest. The majority of other
financial assets and liabilities have short maturities. Derivatives and available-for-sale financial
assets are valued at fair value on the basis of
input data attributable to Levels 2 and 3, respectively, of the fair value hierarchy according to
IFRS 13. There have been no changes to the
Levels applied for valuation during the period.
The fair values of all financial instruments are
deemed to approximate the reported value.
SkiStar has not reported any financial assets
and liabilities at a net amount.
New IFRS and interpretations to be applied during
upcoming periods
IFRS 9 Financial Instruments. In July 2014, the
IASB presented the finished version of IFRS 9,
which replaces IAS 39 Financial Instruments
and supersedes all previous versions of IFRS
9. The standard presents new requirements
regarding the classification, valuation, impairment testing, de-recognition and general hedge
accounting of all financial instruments. Specifically, the new standard demands increased disclosure requirements concerning expected credit losses on the financial instrument and the risk
management employed by the entity regarding
hedge accounting. The standard will impact the
classification and valuation of the Group’s financial assets but will have no effect on either the
classification of valuation of the Group’s financial liabilities. IFRS 9 is applicable for financial
years beginning after 1 January 2018.
The following future changes to the accounting
principles may impact the Statement of Financial
Position for the Group and its equity/assets ratio.
For SkiStar, the change implies that certain associated companies would potentially be recategorised as a Joint Venture or Joint Operation. In such
cases, joint operations are reported according to
the proportional method, whereby assets, liabilities, revenues and expenses can be reported along
with SkiStar’s share. The associated companies
that would potentially be recategorised as a joint
venture would continue to be reported according to
the equity method.
IFRS 10 Consolidated Financial Statements.
New standard for consolidated financial statements. The standard is applicable for financial
IFRS 11 Joint Arrangements. New standard for
the accounting of joint ventures and joint operations. The standard is applicable for financial
IFRS 12 Disclosure of Interests in Other Entities. New standard for the disclosure of all types
of investments in other companies. The standard will come into effect in 2014.
Amended IAS 27 Consolidated and Separate
Financial Statements. The amended standard
includes only regulations for legal entities. In
principle, there are no changes regarding the
accounting and disclosures for separate financial statements. Accounting for associated companies and joint ventures is included in IAS 27.
The amendments are likely to come into effect
in 2014.
Amendment to IAS 28 Investments in Associates. The amended standard corresponds, in
principle, to the previous IAS 28. The amendment concerns the manner in which accounting is to take place when there are changes to
investments in associated companies in which
significant or joint controlling interest ceases or
does not. The amendment is to be applied for
financial years beginning on 1 January 2014 or
later.
Other forthcoming, amended and new IFRS are
not expected to have any impact on the Company’s
accounts.
SEGMENT REPORTING
An operating segment is a part of the Group that
conducts business from which it can generate
revenues and incur expenses and for which there
is independent financial information available.
Income from operating segments is followed up by
the Company’s most superior executive decisionmakers in order to evaluate financial performance
and to enable the appropriate allocation of resources to operating segments. The performance measure
that is most closely monitored is the segment’s operating income. Pursuant to IFRS 8, segment information is only disclosed for the Group. See Note 3 for
a further description of the SkiStar Group’s division
and presentation of operating segments.
CLASSIFICATIONS, ETC.
Fixed assets and non-current liabilities in the Parent Company and the Group are comprised, in all
material respects, solely of amounts expected to
be received or paid later than twelve months after
the balance sheet date. Current assets and current
liabilities in the Parent Company and the Group
are comprised, in all material respects, solely of
amounts expected to be received or paid within
twelve months after the balance sheet date.
CONSOLIDATION PRINCIPLES
Subsidiaries
Subsidiaries are companies that are under the
control of SkiStar AB. Control implies having the
right, directly or indirectly, to form a company’s
financial and operative strategies with the purpose
of gaining economic advantages. In the assessment
to determine whether one entity exercise control
Cont. Note 1 ACCOUNTING PRINCIPLES
over another, potential voting shares which can
immediately be utilised or converted are taken into
consideration.
Acquisitions 1 September 2004 or later
Subsidiaries are reported according to the purchase method, in which the acquisition of a subsidiary is considered a transaction through which the
Group indirectly acquires the subsidiary’s assets
and assumes its liabilities and contingent liabilities.
The fair value of identifiable assets and assumed
liabilities on the acquisition date, as well as noncontrolling interest, is established in the acquisition analysis. Transaction costs arising, with the
exception of transaction costs attributable to the
issue of equity instruments or liability instruments,
are reported directly in the net income for the year.
For business combinations in which transferred
compensation, any possible non-controlling interest and the fair value of the previously owned participating interest (for step acquisitions) exceed the
fair value of the acquired assets, assumed liabilities
and any contingent liabilities, which are reported
separately, the difference is reported as goodwill.
When the difference is negative, it is reported
directly in net income for the year.
Compensation transferred in conjunction with
the acquisition does not include payments relating
to the settlement of previous business obligations.
This type of regulation is reported in net income
for the year.
Conditional purchase consideration is reported
at fair value on the acquisition date. In cases in
which the conditional purchase consideration is
classified as an equity instrument, no revaluation is
undertaken and the regulation is carried out within
equity. For other conditional purchase consideration amounts, these are re-valued at each reporting date and changes are reported in net income
for the year.
In the event that the acquisition does not refer
to 100% of the subsidiary, a non-controlling interest arises. There are two alternatives for reporting a
non-controlling interest. These two alternatives are
either to report the proportional share of net assets
attributable to the non-controlling interest, or,
alternatively, to report the non-controlling interest
at fair value, which implies that the non-controlling
interest is a part of goodwill. The choice between
the different alternatives for reporting a non-controlling interest can be made on an acquisition-byacquisition basis.
For step acquisitions, goodwill is established
on the date on which control is transferred. Earlier
holdings are valued at fair value and the change is
reported in net income for the year.
For divestments which lead to the loss of control, but after which a holding remains, these holdings are valued at fair value and the change in value
is reported in net income for the year.
Financial statements of subsidiaries are included in the consolidated accounts from the date of
acquisition to the date on which control is transferred from the Group.
In cases in which the subsidiary’s accounting principles are not consistent with the Group’s
accounting principles, adjustments have been
made to the Group’s accounting principles.
Losses attributable to a non-controlling interest are allocated to the non-controlling interest, although the non-controlling interest will be
recorded as a debit item in equity.
Acquisition of a non-controlling interest is
reported as a transaction in equity, i.e. between
the shareholders in the Parent Company (in profit
brought forward) and the non-controlling interest.
Therefore, goodwill does not arise in these transactions. The change of non-controlling interest is
based on its proportional share of net assets.
For acquisitions made before 1 September
2004, goodwill is reported, after impairment testing, at an acquisition cost which corresponds to the
reported value under the previous accounting principles. The classification and accounting treatment
of business combinations that occurred before
1 September 2004 have not been reassessed in
accordance with IFRS 3 in establishing the Group’s
opening balance according to IFRS as on 1 September 2004.
Sales to non-controlling interest
Sales to a non-controlling interest, but where control is retained, are reported as a transaction within
equity, i.e. between the shareholders in the Parent
Company and the non-controlling interest. The
difference between the payment received and the
proportional share of the acquired net assets attributable to the non-controlling interest is reported in
profit brought forward.
Associated companies
Associated companies are companies in which the
Group exercises a significant influence, but not
control, in terms of the operational and financial
control usually associated with a shareholding of
between 20% and 50% of the voting rights. From
the point in time at which the significant influence
is acquired, shares in the associated company are
reported in the consolidated accounts according to
the equity method. The equity method implies that
the value of the shares in the associated 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 surplus and deficit values at consolidated level. The Group’s participation in the associated company’s net income, adjusted for any amortisation, impairment or dissolution of acquired surplus and deficit values, is reported in the Statement
of Comprehensive Income for the Group as “Share
of associated companies’ income”. This portion of
net income, less dividends received from associated companies, comprises the main change in the
reported value of shares in associated companies.
The Group’s share of other comprehensive income
in associated companies is reported as a separate
item in the Group’s other comprehensive income.
Incurred transaction costs, with the exception of issue expenses attributable to the issuing
of equity instruments or liability instruments, are
included in the acquisition cost.
Any difference at acquisition between the
acquisition cost for the holding and the owner company’s participation in the net fair value of the associated company’s identifiable assets, liabilities and
contingent liabilities, is reported according to the
same principles as those applied in the acquisition
of subsidiaries.
When the Group’s share of the reported losses
in an associated company exceeds the reported
value of the participations in the Group, the value
of the participation is reduced to zero. Losses are
also settled against long-term financial transactions
where no security has been provided,and where the
financial implication of the transaction , comprises
a part of the owner company’s net investment in
that associated company. Continued losses are not
reported unless the Group has provided guarantees
to cover such losses accrued in the associated company. The equity method is applied up to the point
in time at which the significant influence ceases to
exist.
Transactions to be eliminated
upon consolidation
Intra-Group receivables and liabilities, revenues
or expenses and unrealised gains or losses arising
from intra-Group transactions are eliminated in
their entirety 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.
Unrealised losses are eliminated in the same manner as unrealised gains, but only to the extent to
which there is no indication of an impairment
requirement.
FOREIGN CURRENCY
Transactions in foreign currency
Transactions in foreign currency are translated to
the functional currency at the prevailing exchange
rate on transaction 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 applying on balance sheet date.
Exchange rate differences arising on translation are
reported in net income. Non-monetary assets and
liabilities reported at historical acquisition cost are
translated at the exchange rate applying on transaction date. Non-monetary assets and liabilities
reported at fair value are translated to the functional currency at the exchange rate applying on the
date of valuation to fair value, following which the
exchange rate difference is reported in the same
manner as other changes in value in the asset or
liability in question.
Foreign operations’ financial statements
Assets and liabilities in foreign operations, including goodwill and other Group surplus and deficit
values are translated from the foreign operations’
functional currencies to the Group’s presentation currency, SEK, at the balance sheet date rate.
Income and expenses in foreign operations are
translated to SEK at the average exchange rate for
the period, which comprises an approximation of
the average of the rates applying on the respective
transaction dates. Exchange rate differences arising from the translation of foreign operations are
reported in other comprehensive income as a foreign currency translation reserve. Upon the sale of
foreign operations, the accumulated exchange rate
differences, attributable to the operations, are capitalised in the Statement of Comprehensive Income
for the Group.
Net investment in foreign operations
Exchange rate differences arising in conjunction
with the translation of a foreign net investment
NOT E S
63
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 attributable to the operations, after deduction for any
hedging,, are reported in the Statement of Comprehensive Income for the Group.
REVENUES
Sale of goods and services
Revenues from the sale of goods and services are
reported in the income statement when the significant risks and benefits associated with those goods
or services have been transferred to the buyer. Revenues from accommodation, SkiPasses and other
goods and services associated with guest visits
are recognised in income in conjunction with the
arrival of the guest. Revenues from sales of goods
in shops are reported in conjunction with the
transaction, when the risks and benefits have been
transferred to the purchaser. If there is significant
uncertainty regarding payment, related costs or
risk of the goods being returned, then, no revenue
is recognised.
Revenue from property sales
Revenue from property sales is normally reported
on the date of taking of possession, unless the risks
and benefits have been transferred to the buyer at
a previous date. The control of the asset may have
been transferred prior to the date of taking possession and, if this has taken place, the property sale is
recognised as revenue at the earlier date. In assessing the date for revenue recognition, agreements
between the parties concerning risks and benefits
and the degree of involvement in the ongoing management of the property, are taken into consideration. In addition, circumstances that can influence
the outcome of the transaction and that are beyond
the control of the seller and/or buyer are also considered.
Revenue recognition for property sold to tenantowners’ 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 rented. In other cases, revenue
recognition takes place in pace with the apartments
being rented. 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.
Rental revenues
Rental revenues from the rental of business premises are reported income for the year using the
straight-line method based on the terms of the
rental agreements.
Government grants
Government grants related to assets are reported
in the balance sheet as a reduction of the assets’
reported values.
OPERATING EXPENSES AND FINANCIAL
REVENUES AND EXPENSES
Operating leases
Expenses regarding operating leases are reported in
income for the year, using the straight-line method
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over the lease term and, in some cases, according to the straight-line method during the period
December to April, when the assets are being used.
This category includes equipment which can only
be used during the winter season, such as grooming
machines and snowmobiles. Benefits received in
conjunction with the signing of such a lease agreement are reported in income, reducing the leasing
fee. Variable charges are recognised as an expense
in the periods in which they arise. All leases are
treated as operating leases.
Financial revenues and expenses
Financial revenues and expenses comprise interest
revenues on bank deposits, receivables and interestbearing securities, interest expenses on loans, coupons on interest rate swaps, dividend revenue and
exchange rate differences.
Interest revenues on receivables and interest expenses on liabilities are calculated with the
application of the effective interest method. The
effective interest is the interest rate applied in discounting to present value all of the estimated future
deposits and payments arising during the expected
tenor of the financial instrument to the financial
asset’s or liablity’s reported net value. Interest revenues include allocated 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 revenue is reported when the right to
receive payments has been determined.
FINANCIAL INSTRUMENTS
Financial instruments reported in the Statement
of Financial Position for the Group include, on the
asset side, shares and participations, non-current
receivables, accounts receivable, current loans
receivable and cash and cash equivalents. Such
financial instruments included in liabilities and
equity include borrowings, derivatives in the form
of interest rate swaps, advance payments from customers and accrued interest.
Financial instruments are initially reported at an
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
profit or loss”, 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 recognised 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 the
service 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 executed the
service in question 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 de-recognised in the Statement of Financial Position for the Group when the
rights in the agreement are realised, when they
mature or when the Company cedes control of the
asset. The same applies for components of a financial asset. A financial liability is de-recognised 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
reported 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 date reporting is applied.
The fair value of listed financial assets is equivalent 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 financial asset, or a group of financial assets, is
impaired. For further information, refer to the
“Impairment” section on page 65.
Financial instruments are classified in conjunction with initial recognition based on the purpose
for which the instrument was acquired, which
influences the subsequent accounting of the instrument. Consequently, financial instruments are
reported according to their classification as follows:
Loans receivable and accounts receivable
Loans receivable and accounts receivable are nonderivative financial assets with fixed or determinable payments which 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 category also includes acquired
receivables. Assets in this category are measured
at amortised cost. Amortised cost is determined on
the basis of the effective interest calculated at the
date of acquisition. Accounts receivable are classified as belonging to the category loans receivable
and accounts receivable. Accounts receivable are
reported at the amounts which are expected to be
received after deductions for individually assessed
bad debts. The accounts receivables’ expected
maturities are short, for which reason they are
usually reported at their nominal amount without
discounting. Impairment of accounts receivable is
reported in operating expenses.
Non-current receivables and other current
receivables are receivables arising when the Company provides funds with no intention of trading in
the resulting claim. If the expected duration of the
receivables is longer than one year, the amounts
are deemed to comprise non-current receivables
and if the duration is shorter than one year, the
items comprise other receivables.
Available-for-sale financial assets
The category available-for-sale financial assets
includes financial assets that are not classified in
any other category or financial assets 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 changes in value are reported as a special component of equity, however, this does not
include value changes dependent on impairment,
nor interest on debt instruments, income from dividends or exchange rate differences on monetary
items which are reported in the year’s income.
At the time an investment is de-recognised in
the Statement of Financial Position for the Group,
accumulated profit or loss which has previously
been reported in Other comprehensive income is
reversed in income for the year.
Financial investments
Financial investments comprise either financial
fixed 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, these instruments are deemed to comprise
financial fixed assets, and if they are shorter than
one year, they comprise current investments.
Other financial liabilities
Financial liabilities not held for trade are measured
at amortised cost. Amortised cost is determined
on the basis of the effective interest calculated at
the time the liability was recognised. This entails
that surplus and deficit values, as well as costs
directly related to share issues, are allocated over
the duration of the liability. Liabilities are classified as other financial liabilities, which implies that
they are initially reported at the amount received
after deduction of transaction costs. After the point
of acquisition, the loan is measured at amortised
cost according to the effective interest method.
Non-current liabilities have an expected duration
greater 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 maturity
and are valued, without discounting, at their nominal amount.
Cash and cash equivalents includes cash-on-hand
and immediately accessible funds deposited in
banks or equivalent institutions, as well as current
investments having a maturity of less than three
months from acquisition date and which are subject
to only an insignificant risk of value fluctuations.
TANGIBLE FIXED ASSETS
Tangible fixed assets 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
acquisition cost can be reliably estimated.
Tangible fixed assets are recognised in the
Group’s accounts at acquisition cost, less accumulated depreciation and any impairment. The
acquisition cost includes the price paid and any
costs directly attributable 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. Accounting principles for
impairment are stated below.
The acquisition cost for tangible fixed assets
developed internally by the Company includes
expenses for materials and personnel costs, other
production costs considered to be directly attributable to the asset (if applicable) and interest on bor-
rowings incurred during the construction phase.
Tangible fixed assets consisting of components
with differing estimated useful lifetimes are treated
as separate components within tangible fixed assets.
The reported values of tangible fixed assets
are de-recognised from the Statement of Financial
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 reported value of the asset, less direct
selling expenses. Gains or losses are recognised as
other operating revenues/expenses.
Subsequent expenditure
Subsequent expenditure is added to the acquisition
cost only when it is likely that the future economic
benefits associated with the asset will accrue to the
Company and when the acquisition cost can be
reliably estimated. All other subsequent expenditure is recognised as an expense in the period in
which it arises.
The critical factor in determining when subsequent 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
capitalised. In cases in which a new component is
identified, the expenditure is added to the acquisition cost. Any undepreciated reported values
of replaced components, or parts of components,
are eliminated and expensed in conjunction with
the replacement. Repair costs are expensed on an
ongoing basis.
Depreciation principles
Depreciation 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 depreciation, in which the estimated useful lives of the
components form the basis of 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
depreciation is charged on the land component,
the estimated useful life of which is unlimited.
Buildings, however, consist of a number of components with varying estimated 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 foundations
50 years
Structural additions, interior 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
components with varying estimated useful lives.
The estimated useful lives for these components
have been determined to vary between 10 and 33
years.
of 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
of 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 ASSETS
Goodwill
Goodwill represents the difference between the
acquisition 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, instead, tested annually for impairment.
Goodwill arising on the acquisition of an associated company is included in the reported value
of the participating interest in that associated
company.
Other intangible assets
Other intangible assets acquired by the Group are
recognised at acquisition cost less accumulated
amortisation and impairment.
Costs incurred for internally generated goodwill
and internally generated trademarks are recognised in income for the year 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 expenditure comprises external invoiced costs and, if applicable,
direct costs for the Company’s own personnel.
Subsequent expenditure
Subsequent expenditure for capitalised intangible
assets are recognised as an asset in the Statement
of Financial Position for the Group only when such
expenditure increases the future economic benefits
attributable to the asset to which that expenditure
refers. All other expenditure is expensed as it arises.
Amortisation principles
Amortisation is reported in the year’s income on a
straight-line basis over the estimated useful lives of
the intangible 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 question has declined in value.
NOT E S
65
Intangible assets subject to amortisation are amortised from the date on which the asset became
available for use. The estimated useful lives are:
Lease agreements
25-50 years
Capitalised development expenditure,
rental rights, etc.
5 years
The useful lives are reviewed on an annual basis.
INVENTORIES
Inventories 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 inventories is calculated applying the Firstin/First-out principle (FIFO) and includes expenditure arising from the acquisition of the inventories.
IMPAIRMENT
The reported values of the Group’s assets are
tested on each balance sheet date for indications
of impairment. IAS 36 is applied as regards the
impairment of assets other than financial assets,
which are reported according to IAS 39, assets held
for sale and disposal groups, which are reported
according to IFRS 5, inventories, plan assets used
to finance employee benefits and deferred tax
assets. The reported values of assets other than
those above are tested in accordance with the
standard applying to 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 recover
able 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
assets shall be grouped for the purpose of impairment testing at the lowest 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-generating unit’s reported
value exceeds its recoverable amount. Impairment
is charged to net income.
The impairment of assets attributable to a cashgenerating 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 on 31
May 2014, even though there was no indication of
impairment.
The recoverable amount of other assets is the
higher of the fair value less selling costs and value
in use. In calculating the value in use, the future
cash flow is discounted by a discounting factor
taking into consideration 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 assets
In conjunction with each reporting date, 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 evidence 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 partly of a
material or long-term reduction of the fair value of
66
NOT ES
a financial investment classified as an available-forsale financial asset.
The Company classifies accounts receivable as
doubtful debts when they are 180 days overdue.
The impairment requirement of the receivables is
determined on the basis of historical experience
of doubtful debts as regards similar receivables.
Accounts receivable with an impairment requirement are reported at the present value of expected
future cash flows. The receivables with a short
maturity which can be sold are not, however, discounted.
Equity instruments classified as available-forsale 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 comprises a long-term decline in
value.
With the impairment of an equity instrument
classified as an available-for-sale financial asset,
previously reported accumulated gains or losses
in equity are reclassified via other comprehensive
income in income for the year. The amount of the
accumulated losses which are reversed from equity
via other comprehensive income in income for the
year is comprised of the difference between the
acquisition cost and actual fair value, after deduction for any possible impairment of the financial asset which has been previously reported in
income.
Impairment of available-for-sale financial assets
is reported in income for the year, included in net
financial items.
Reversal of impairment
The 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
recoverable amount. The impairment of goodwill
is, however, never reversed. A reversal is recorded
only to the degree that the asset’s value reported
after reversal does not exceed that value that 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 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
reported in income, is not reversed via 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 interestbearing instruments, classified as available-for-sale
financial assets, is reversed in income if the fair
value increases and if such an increase can be seen
to objectively refer to an event taking place after
the impairment was executed.
EMPLOYEE BENEFITS
Defined contribution plans
Defined contribution plans are classified as plans
in which the Company’s obligation is limited to
the premium contributions the Company has
committed to provide. In these cases, the size of
the employee’s pension depends on the premium
contributions which the Company contributes
to the plan or to an insurance company, and the
return on capital generated by these premium
contributions. Accordingly, the employee assumes
the actuarial risk (that the value of the benefit is
less than expected) and the investment risk (that
the invested assets will not be sufficient to provide
the expected benefits). The Company’s obligations
regarding premium contributions to defined contribution plans are accounted for as an expense in
income for the year as the benefits are earned on
the basis of the performance of services provided
by the employees on behalf of the Company for a
given period of time.
Defined benefit plans
The Company reports no defined benefit plans.
Changes to IAS 19 Employee Benefits. The
IASB has amended the requirements in IAS 19
for contributions from employees or third parties
associated with the position of employment. If the
amount of the contribution is independent of the
number of years of employment, the contribution may be reported as a reduction of employee
overhead costs in the period during which the corresponding provision of services by the employee
were executed. If, on the other hand, the amount
of the contribution is dependent on the number
of years of employment, the contribution must be
assigned to periods of employment in the same
manner as with gross benefits according to point
70 of IAS 19. These changes are intended to assist
entities in their entitlement to deduct contributions paid from the cost of employment in the
period in which the services are executed by the
employees.
Severance pay
The cost of compensation in connection with the
termination of employment is only reported if the
Company can be shown to be committed, without
a realistic possibility of withdrawal, to a formal
detailed plan to terminate the employment prior
to the usual point in time of termination of the
employment. 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 reliably estimated.
PROVISIONS
A provision is reported in the Statement of Financial Position for the Group when the Group has an
existing legal or constructive obligation to do so as
a result of past events, when it is probable that an
outflow of resources will be required to settle the
commitment and when the amount can be reliably
estimated.
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 comprehensive income or directly against
equity, in which case the related tax effects are
reported correspondingly.
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 balance sheet date, as well as
adjustments of current tax attributable to previous
periods.
Deferred tax is calculated according to the
balance sheet method on temporary differences
between the reported values 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 which,
at the date of the transaction, do not affect either
reported or taxable income. In addition, no consideration is given to temporary differences attributable to participations in subsidiaries and associated
companies which are not expected to be reversed
in the foreseeable future. The measurement of
deferred tax is based on the manner in which the
reported value of the asset or liability is expected
to be realised or settled. Deferred tax is calculated
with the application of the tax rates and tax regulations which are determined or which are likely to
be adopted as per balance sheet date.
Deferred tax liabilities regarding deductible
temporary differences and loss-carry forwards are
reported only to the extent it is likely that they can
be utilised. The value of deferred tax liabilities is
reduced when it is no longer deemed likely that
they can be utilised.
Classification and format
An income statement and a statement of comprehensive income are reported for the Parent Company.. Furthermore, in the Parent Company, the
terms “balance sheet” and “cash flow statement”
are used for the statements referred to in the consolidated accounts as as Statement of Financial
Position and Cash Flow Statement. The income
statement and balance sheet for the Parent Company are prepared in accordance with the format
designated in the Annual Accounts Act, while the
Statement of Comprehensive Income, Statement
of Changes 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, consist primarily of
the reporting of financial revenues and expenses,
equity, and of, as applicable, as separate items in
the balance sheet.
Financial instruments
The Parent Company applies the rules of the
Swedish Annual Accounts Act, Chapter 4, Section
14 a-e, allowing the valuation of certain financial
instruments at fair value.
Differences between the Group’s and the
Parent Company’s accounting principles
Differences between the Group’s and the Parent
Company’s accounting principles are specified
below. The accounting principles stated below
for the Parent Company have been consistently
applied to all periods presented in the Parent Company’s financial statements.
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.
EARNINGS PER SHARE
The 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 outstanding shares during the
year. In conjunction 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 dilution effect of potential ordinary shares arising from convertibles and options
issued to employees during reporting periods. Dilution arising from options impacts the number of
shares, and occurs only when the redemption price
is lower than the stock exchange price. 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 an amount equivalent to the
total number of shares represented by the convertible debentures, and by increasing income by the
reported interest expenses, after tax.
Subsidiaries and associated companies
Participations in subsidiaries and associated
companies are reported in the Parent Company
according to the cost method. This implies that
transaction costs are included in the reported values of investments in subsidiaries and associated
companies. In the consolidated accounts, transaction costs attributable to subsidiaries are reported
directly in income when they arise.
Contingent purchase consideration is valued
according to the probability that the purchase consideration will be payable. Any changes to the provision/the receivable increase or reduce, respectively, the acquisition cost. In the consolidated
accounts, contingent purchase consideration is
reported at fair value with any value changes affecting income.
CONTINGENT LIABILITIES
A contingent liability is reported when there is a
possible commitment arising from past events the
existence of which 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
PRINCIPLES
The annual report for the Parent Company is prepared according to the Swedish Annual Accounts
Act (1995:1554) and the Swedish Financial Reporting Board’s standard RFR 2. The Swedish Financial
Reporting Board’s statements for listed companies
are also applied.
Employee benefits
The Parent Company applies other bases for the
calculation of defined benefit plans than those
stipulated in IAS 19. The Parent Company follows
the provisions of the Swedish Pension Obligations
Vesting Act and the Swedish Financial Supervisory Authority’s regulations, as this is a condition
for the right to fiscal deduction. 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 on future salary increases, and that all actuarial gains and losses
are reported in the income statement as they arise.
Group contributions and shareholders’
contributions for legal entities
The Company reports Group contributions and
shareholders’ contributions in accordance with
RFR 2. The extent that impairment is not required,
shareholders’ contributions are recognised directly
in equity by the recipient and are capitalised in
shares and participations by the contributing entity. Group contributions are reported in the income
statement.
FINANCIAL GUARANTEES
The Parent Company’s financial guarantee contract consists primarily of guarantor commitments
for the benefit of subsidiary companies. Financial guarantees signify that the Company has a
commitment to compensate the owner of a debt
instrument for losses suffered by that entity due to
a given debtor failing to fulfil its obligation of payment according to the contractually agreed upon
payment date. In the accounting of financial guarantee contracts, the Parent Company applies one
of the mitigation rules permitted by the Swedish
Financial Reporting Board in comparison with the
regulations of IAS 39. This mitigation rule refers to
financial guarantee contracts issued for the benefit
of subsidiary companies, associated companies and
joint ventures. The Parent Company reports financial guarantee contracts as provisions in the Statement of Financial Position for the Group when the
Company has an obligation regarding payment
which will , most likely, be required to settle such
obligation.
NOT E S
67
Note 2 DISTRIBUTION OF NET SALES
GROUP, MSEK
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
925
188
139
47
72
125
171
927
205
134
46
70
124
159
1,667
1,665
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
616
172
98
42
55
78
126
615
135
92
41
54
71
140
1,187
1,148
Alpine skiing/SkiPasses
Accommodation
Ski hire
Ski school/Activities
Sporting goods outlets
Property service
Other
PARENT COMPANY, MSEK
Alpine skiing/SkiPasses
Accommodation
Ski hire
Ski school/Activities
Sporting goods outlets
Property service
Other
The Parent Company’s net sales originate in Sweden
Note 3 GROUP OPERATING SEGMENTS
Revenues and income per operating segment, 1 September - 31 August. Joint Group expenses have been allocated according to estimated benefit.
SWEDEN
Destinations
MSEK
Property Development
Intra-segment
2013/14
2012/13
2013/14
2012/13
1,171
24
1,145
25
60
67
40
68
-894
-86
1
-95
-845
-86
0
-99
-24
-2
3
-39
-19
-2
-3
-41
Net income for the segment
121
140
65
43
Development properties
Operating properties
Machinery and equipment
Financial fixed assets
296
741
57
98
207
746
64
101
325
627
17
209
379
702
26
170
1,192
1,118
1,178
1,277
Non-current, interest-bearing liabilities
Current, interest-bearing liabilities
274
331
397
586
400
621
Total interest-bearing liabilities
274
331
983
1,021
Operating margin, %
Dividend yield, %
10.1
12.0
8.8
6.6
External revenues
Internal revenues
External expenses
Internal expenses
Depreciation/amortisation
Total fixed assets
2013/14
Total
2012/13
2013/14
2012/13
-57
-57
1,231
34
1,185
36
57
57
-918
-31
4
-134
-864
-31
-3
-140
0
0
186
183
325
923
758
266
98
379
909
772
234
101
2,370
2,395
671
586
731
621
0
1,257
1,352
2012/13
2013/14
2012/13
-37
-34
501
0
521
0
37
34
-372
-4
-8
-71
-378
-4
-23
-79
0
0
46
37
71
498
302
277
116
68
484
319
198
101
1,264
1,170
794
17
705
46
811
751
0
0
0
NORWAY
Destinations
MSEK
Intra-segment
2013/14
2012/13
2013/14
2012/13
499
10
514
6
2
27
7
28
-369
-39
0
-56
-370
-36
0
-62
-3
-2
-8
-15
-8
-2
-23
-17
45
52
1
-15
66
286
13
116
59
303
4
101
71
432
16
264
68
425
16
194
Total fixed assets
481
467
783
703
194
222
600
17
483
46
194
222
617
529
8.8
10.0
2.0
0.3
External revenues
Internal revenues
External expenses
Internal expenses
Operating margin, %
Dividend yield, %
68
NOT ES
2013/14
0
0
Total
0
0
Cont. Note 3 GROUP OPERATING SEGMENTS
Skistar
Destinations
MSEK
External revenues
Internal revenues
External expenses
Internal expenses
Intra-segment
2013/14
2012/13
2013/14
2012/13
1,670
34
1,659
31
62
94
47
96
-1,263
-125
1
-151
-1,215
-122
0
-161
-27
-4
-5
-54
-27
-4
-26
-58
166
192
66
28
2013/14
Total
2012/13
2013/14
2012/13
-128
-127
1,732
0
1,706
0
128
127
-1,290
-1
-4
-205
-1,242
1
-26
-219
0
0
232
220
Net financial income
-12
-17
-41
-43
-53
-60
Profit/loss after net financial income
154
175
25
-15
0
0
179
160
0
362
1,027
70
214
0
266
1,049
68
202
396
1,059
33
473
0
447
1,127
42
364
0
0
0
0
0
0
0
0
0
0
0
396
1,421
1,060
543
214
447
1,393
1,091
432
202
Total fixed assets
1,673
1,585
1,961
1,980
0
0
3,634
3,565
468
0
553
0
997
603
883
667
0
0
0
0
1,465
603
1,436
667
468
553
1,600
1,550
0
0
2,068
2,103
9.7
11.4
6.1
4.3
Operating margin, %
Dividend yield, %
SkiStar’s operations are divided into four operating segments, Destinations for Sweden
and Norway, and Property Development for Sweden and Norway. Properties have been
classified as either development properties (land which can be developed and properties
for tourist accommodation) or operating properties (other properties). Operating properties reported under Destinations comprise land improvements and related machinery and
equipment, such as underground pipes for snowmaking equipment. Financial fixed assets
mainly comprise the Group’s share of equity in associated companies. Liabilities have
been classified on the basis of pledging and mortgageable properties. Outstanding loans
in Destinations comprise operating credit facilities and short-term funding arrangements
of a temporary nature. The internal rent for operating properties, which is recognised
as revenue in the Property Development business area, has been set at 5 percent of the
reported acquisition cost. For development properties, the internal rent is charged only for
accommodation properties and the level is based on a 20 percent mediation commission
on rental revenues.
External revenues refer exclusively to sales from the Group’s segments and arise in the
country in which the guest is located, as well as value added on the assets in the respective
country. Revenues and operating expenses from other segments refer to transactions
between the Destinations and Property Development business areas.
All purchases and sales between Group companies have taken place under market
conditions.
Note 4 OTHER OPERATING REVENUES
Note 6 FEES AND REMUNERATION TO AUDITORS
Other operating revenues primarily include capital gains from the sale of fixed assets.
These revenues amounted to MSEK 65 in the Group (40) and to MSEK 8 in the Parent
Company (24).
GROUP
Note 5 WORK PERFORMED BY THE COMPANY FOR ITS OWN
USE AND CAPITALIZED
Work performed by the Company for its own use and capitalised includes expenses for
the work performed by SkiStar’s personnel reported as investments, as well as expenses
attributable to the Company’s own construction equipment.
Work performed by the Company for its own use and capitalised during the year
amounted to TSEK 4,426 (2,040).
Work performed by the Company for its own use and capitalised during the year for the
Parent Company amounted to TSEK 3,711 (719)
Ernst & Young AB
Audit assignment
Other assignments
GROUP
KPMG
Audit assignment
Other assignments
PARENT COMPANY
Ernst & Young AB
Audit assignment
Other assignments
PARENT COMPANY
KPMG
Audit assignment
Other assignments
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
1,139
132
-
1,271
-
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
777
647
1,859
469
1,424
2,328
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
876
4
-
880
-
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
166
436
1,192
39
602
1,231
The audit assignment includes the statutory audit of the annual report, the consolidated
accounts and the accounting records, as well as of the administration by the Board of
Directors and CEO, other auditing procedures incumbent upon the auditor and advice or
other assistance resulting from observations made during the audit or implementation of
such other procedures.
NOT E S
69
Note 7 FEES FOR OPERATING LEASES
GROUP
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
22,588
21,712
24,351
81,234
23,751
90,483
105,585
114,234
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
18,852
19,665
20,600
74,400
22,185
87,814
95,000
109,999
Leasing expenses for the financial year
Contracted future leasing fees referring to non-cancellable
lease agreements mature as follows:
Within one year:
Between one and five years
PARENT COMPANY
Leasing expenses for the financial year
Contracted future leasing fees referring to non-cancellable
lease agreements mature as follows:
Within one year:
Between one and five years
SkiStar has operating leases for grooming machinery, snowmobiles and construction machinery. The leasing fees for a portion of the grooming machinery are reported during the
period December–April, in order that these costs can be charged to the periods in which
the machinery is actually used. The fees for 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, the agreements may
potentially be extended. Leasing fees are recorded as a rental expense in the Statement of
Comprehensive Income for the Group.
SkiStar has entered into agreements with companies in Vemdalen and Åre from which
SkiStar hires a total of five lifts. The lease agreements have tenures of 20 years apiece and
the annual leasing fees for these lifts total MSEK 14.6. Starting with the season 2014/15,
there is also a further agreement in Vemdalen involving the rental of an additional ski lift.
The annual rental charge for this lift is MSEK 3.
SkiStar has also entered into agreements regarding the leasing of land at its various
destinations, which are not included in the table above.
AVERAGE NUMBER OF EMPLOYEES
The average number of employees, classified by gender, has amounted to:
Sweden
Women
Men
Norway
Women
Men
Total for the Group
1 Sep 2013
-31 Aug 2014
Proportion, %
1 Sep 2012
-31 Aug 2013
Proportion, %
340
512
40
60
328
488
40
60
95
187
34
66
85
184
32
68
1,134
1,085
PARENT COMPANY
Sweden
Women
Men
335
501
Total for the Parent Company
836
40
60
320
480
40
60
800
MEMBERS OF THE BOARD OF DIRECTORS AND 31 Aug 2014
GROUP MANAGEMENT CLASSIFIED BY GENDER
% women
GROUP
Board of Directors
Other senior management
25%
16%
22%
0%
25%
16%
1 Sep 2013–31 Aug 2014
Social
SALARIES, OTHER REMUNERATION AND Salaries and
security
SOCIAL SECURITY CONTRIBUTIONS
remuneration contributions
22%
0%
1 Sep 2012–31 Aug 2013
Social
Salaries and
security
remuneration contributions
PARENT COMPANY
(of which pension costs) 2)
11,327
256,312
6,393
80,216
14,019
239,327
(3,057)
(9,543)
127,320
19,664
394,959
106,273
70
NOT ES
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 determined annually to apply during the period September to August.
Bonuses
Members of senior management are entitled to cash bonuses based on the current bonus
programme applying to SkiStar AB’s senior 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 implies that the cash bonus paid cannot exceed MSEK 5. Bonuses
are paid based on the Company’s performance in terms of growth in earnings per share,
return on equity, operating margin and organic growth.
Pensions
Members of senior management are entitled to pension solutions according to collective
agreements and agreements with SkiStar. For the CEO, the Company pays pension
contributions corresponding to 30% of salary. For other members of senior management,
pension payments are made according to the customary ITP plan.
Term of notice and severance pay
The term of notice upon termination of employment initiated by SkiStar is a maximum
of 24 months and, upon termination of employment initiated by the senior manager, a
maximum of 6 months. Severance pay is only payable upon termination initiated by the
Company, and only during the employment period until such time as the employee has
obtained new employment.
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’ Remuneration Committee. The
Remuneration 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.
Note 9 DEPRECIATION OF TANGIBLE AND AMORTISATION OF
INTANGIBLE FIXED ASSETS
Capitalised expenditure for IT systems
Rental rights and similar rights
Buildings, land and land improvements
Plant, machinery and equipment
123,319
20,399
376,665
104,000
Capitalised expenditure for IT systems
Rental rights and similar rights
Buildings, land and land improvements
Plant, machinery and equipment
1 Sep 2012
-31 Aug 2013
10,413
6,083
56,532
132,055
9,864
6,506
57,953
144,288
205,083
218,611
10,413
1,319
26,784
80,129
9,864
1,582
27,019
86,225
118,645
124,690
Note 10 INCOME FROM PARTICIPATIONS IN GROUP COMPANIES
AND ASSOCIATED COMPANIES
(5,295)
(20,941)
1 Sep 2013
-31 Aug 2014
PARENT COMPANY
(2,861)
(12,785)
(3,432)
(16,032)
7,265
76,336
f the Parent Company’s pension costs, TSEK 852 (815) refers to the CEO. The Parent Company’s
O
total pension costs are comprised of defined contribution and defined benefit pensions.
2)
Of the Group’s pension costs, TSEK 852 (815) refers to the CEO and TSEK 2,205 (2,046) to
other senior management.
1)
Fundamental principle
Total remuneration and other terms of employment shall be sufficiently attractive to retain
and attract new, competent senior managers.
GROUP
Board of Directors
Other senior management
GROUP
GUIDELINES FOR REMUNERATION TO SKISTAR’S GROUP MANAGEMENT
The guidelines stated below address remuneration and other terms of employment for
Group management in SkiStar. These individuals are referred to below as senior management. The guidelines were prepared by the Remuneration Committee and were adopted at
the Annual General Meeting on 14 December 2013. These guidelines shall be applied in the
preparation of any new agreements, and in the event of alterations to existing agreements.
31 Aug 2013
% women
PARENT COMPANY
Senior management
Other personnel
(of which pension costs)
senior management1)
other personnel
SUBSIDIARIES
Senior management
Other personnel
(of which pension costs)
senior management1)
other personnel
BENEFITS TO SENIOR MANAGEMENT
Remuneration has been paid to members of the Board of Directors in the amount of
TSEK 615 (730), of which TSEK 155 (155) was paid to the Chairman and TSEK 115 (115) to
each of the other members 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 3,143
(3,973), of which the CEO’s bonus totals TSEK 258 (1,080). Up until December 2013, the
Deputy CEO received salary, remuneration and benefits at a total value of TSEK 934
(2,357), of which the bonus amounted to TSEK 53 (608). Salaries, remuneration and
benefits paid to the other 5 (4) members of Group management amounted to TSEK 7,250
(7,689), of which TSEK 239 (956) constituted bonuses.
Non-monetary benefits
In addition to the benefits available to other employees within SkiStar, members of senior
management are also entitled to extra health insurance.
Note 8 INFORMATION ON PERSONNEL AND REMUNERATION
TO THE BOARD OF DIRECTORS AND THE CEO
GROUP
Cont. Note 8 INFORMATION ON PERSONNEL AND REMUNERATION
TO THE BOARD OF DIRECTORS AND THE CEO
PARENT COMPANY
Dividends
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
261
37,827
261
37,827
The dividend during the previous year was received from the subsidiary, Skistar No AS.
The dividends during this year were received from associated companies.
Note 11 TAX
REPORTED IN COMPREHENSIVE INCOME
REPORTED IN THE BALANCE SHEET
1 Sep 2013
-31 Aug 2014
GROUP
1 Sep 2012
-31 Aug 2013
Current tax expenses (-) / revenues (+)
Tax for the period
Adjustment of previous year’s tax
-13,117
1,809
-14,159
-8
-11,308
-14,167
Deferred tax expenses (-) / revenues (+)
PARENT COMPANY, 31 Aug 20141
Fixed assets
Unutilised loss carry-forwards
Derivatives
Set-off
Deferred tax referring to temporary differences
Deferred tax due to change in tax rates
Deferred tax in tax value of loss carry-forward
capitalised during the year
Total reported tax revenues/expenses in the Group
2,782
-2,790
-
-5,693
-8,331
-730
-5,549
-9,213
-16,857
-23,380
REPORTED IN THE INCOME STATEMENT
PARENT COMPANY
1 Sep 2012
-31 Aug 2013
Deferred
tax liabilities
Net
1,029
38,277
5,745
-131,785
-
-130,756
38,277
5,745
45,051
-131,785
-86,734
-
-
Net deferred tax assets/liabilities
45,051
-131,785
Deferred
tax assets
Deferred
tax liabilities
Net
43,684
-
-125,757
-221
-125,757
43,684
-221
43,684
-125,978
-82,294
-
-
-
43,684
-125,978
-82,294
Reported
Reported
in the
in Other
Income comprehensive
income
Statement
Amount at
year-end
Fixed assets
Derivatives
Set-off
1 Sep 2013
-31 Aug 2014
Deferred
tax assets
-86,734
Deferred tax expenses (-) / revenues (+)
Deferred tax referring to temporary differences
Deferred tax due to change in tax rates
Deferred tax in tax value of loss carry-forward
capitalised during the year
Total reported tax revenues/expenses in the Parent Company
RECONCILIATION OF
EFFECTIVE TAX
GROUP
Income before tax
Tax according to current tax rate
for the Parent Company
Difference in tax rates in foreign
operations
Non-deductible expenses
Non-taxable income
Tax attributable to previous years
Standard interest on tax
allocation reserves
Effect of change in tax rates
Other
Reported effective tax
RECONCILIATION OF
EFFECTIVE TAX
PARENT COMPANY
Income before tax
Tax according to current tax rate
for the Parent Company
Non-deductible expenses
Non-taxable income
Tax attributable to previous years
Standard interest on tax
allocation reserves
Effect of change in tax rates
Other
Reported effective tax
1 Sep 2013
-31 Aug 2014
Percent
-5,767
-3,115
-
15,320
-4,639
-34
-10,406
12,171
-10,406
12,171
1 Sep 2012
-31 Aug 2013
Amount
Percent
179,180
Amount
-39,420
22.0%
-35,197
1.4%
52.1%
-65.6%
-0.1%
-2,421
-93,282
116,030
1,809
2.6%
56.1%
-69.7%
0.1%
-4,239
-89,730
111,464
-201
0.0%
-0.3%
0.0%
484
-57
0.0%
3.4%
0.0%
-4
-5,500
27
9.4%
-16,857
14.6%
-23,380
Percent
Fixed assets
Derivatives
Other
Percent
120,541
Fixed assets
Derivatives
Other
GROUP, 31 Aug 2014
1 Sep 2012
-31 Aug 2013
Amount
GROUP, 31 Aug 2014
159,987
22.0%
1 Sep 2013
-31 Aug 2014
CHANGE IN DEFERRED TAX ON TEMPORARY DIFFERENCES
AND LOSS CARRY-FORWARDS
Amount
147,322
22.0%
75.4%
-90.2%
0.0%
-26,519
-90,872
108,755
-
22.0%
60.9%
-75.7%
-5.6%
-32,411
-89,728
111,460
8,322
0.0%
0.0%
1.5%
-1,770
0.1%
-10.5%
0.5%
-193
15,513
-792
8.6%
-10,406
-8.3%
12,171
Fixed assets
Derivatives
Other
Fixed assets
Derivatives
Other
Amount
at the
beginning
of the year
-180,783
181,271
2,438
-6,950
2,868
-8,669
-4,024
Amount
at the
beginning
of the year
252
6,649
-1,168
-177,915
172,602
9,087
-7,866
-5,549
5,481
-4,092
Reported
Reported
in the
in Other
income
Statement
Amount at
year-end
-125,757
42,916
-221
768
-6,028
-4,639
-82,294
Amount
at the
beginning
of the year
261
5,966
-
-131,785
38,277
5,745
1,029
-10,406
5,966
-86,734
Reported
Reported
in the
in Other
income
Statement
Amount at
year-end
-212,318
217,384
6,086
-4,975
29,068
-36,113
-1,975
2,467
-3,648
-
-180,783
181,271
2,438
-6,950
6,177
-9,020
-1,181
-4,024
Reported
Reported
in the
in Other
income
Statement
Amount at
year-end
Amount
at the
beginning
of the year
-146,229
51,793
2,890
-
20,472
-8,877
768
-3,111
-
-125,757
42,916
-221
768
-91,546
12,363
-3,111
-82,294
REPORTED IN THE STATEMENT OF FINANCIAL POSITION FOR THE GROUP
GROUP, 31 Aug 2014
Fixed assets
Derivatives
Other
Set-off
GROUP, 31 Aug 2014
Fixed assets
Derivatives
Other
Set-off
Deferred
tax assets
Deferred
tax liabilities
Net
-1,789
172,602
5,745
-
-176,126
3,342
-7,866
-177,915
172,602
9,087
-7,866
-4,092
176,558
-180,650
-152,817
152,817
23,741
-27,833
Deferred
tax assets
Deferred
tax liabilities
Net
181,271
-
-180,783
2,438
-6,950
-180,783
181,271
2,438
-6,950
-4,024
181,271
-185,295
-159,256
159,256
22,015
-26,039
-4,092
The entirety of the deferred tax liability amounting to TSEK 23,741 (27,833) refers to the
Norwegian operations. Deferred tax assets in the Swedish operations amounted to TSEK
23,741 (22,015). The deficit has, primarily, accrued to the Group through the acquisition of
a company with unutilised loss carry-forwards.
At the end of the financial year, there remain tax deficits totalling MSEK 785 (824), of
which MSEK 0 (0) refers to the Norwegian operations
The deficits are not limited in time, and, consequently, information on maturity dates is
not provided.
The Norwegian corporate tax rate was reduced from 28.0% to 27.0% during the year, which
had an impact of TSEK 484. Deferred taxes in both the Group and the Parent Company
have been revalued at tax rates of 22.0% in Sweden and 27.0% in Norway.
The change in the rules governing tax exemption for income from specially assessed
properties implies that SkiStar’s income from its Swedish operations will be taxed in full as of
financial year 2014/15. However, SkiStar AB also has MSEK 785 of unutilised loss carry-forwards,
as a result of which the Company does not expect to pay taxes for a number of years.
-4,024
NOT E S
71
Note 12 EARNINGS PER SHARE
Note 13 INTANGIBLE FIXED ASSETS
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
Total number of shares, 1 September
39,188,028
39,188,028
Weighted average number of shares during the year,
before dilution
39,188,028
39,188,028
162,430
39,188,028
4:14
NUMBER OF SHARES BEFORE DILUTION
Earnings per share before dilution
NUMBER OF SHARES AFTER DILUTION
after dilution
Earnings per share after dilution
Total
140,663
915
123
-3,878
90,797
-4,529
329,500
9,091
4,121
-8,407
110,214
137,823
86,268
334,305
Opening balance, 1 Sept 2013
Capitalised expenditure
Reclassifications
Exchange rate differences
110,214
13,860
10,035
-
137,823
-5,698
86,268
3,179
334,305
13,860
10,035
-2,519
Closing balance, 31 Aug 2014
134,109
132,125
89,447
355,681
-71,288
-9,864
-
-46,562
-6,506
2,018
-
-117,850
-16,370
2,018
136,902
39,188,028
3:49
39,188,028
39,188,028
Accumulated amortisation and
impairment
Amortisation
39,188,028
39,188,028
-81,152
-51,050
-
-132,202
Amortisation
-81,152
-10,414
-
-51,050
-6,083
6,851
-
-132,202
-16,497
6,851
-91,566
-50,282
-
-141,848
Reported value, 31 Aug 2013
29,062
42,543
86,773
81,843
86,268
89,447
202,103
213,833
Capitalised Rental rights
expenditure
and similar
for IT systems
rights
Goodwill
Total
1 Sep 2013
1 Sep 2012
-31 Aug 2014 -31 Aug 2013
EARNINGS PER SHARE AFTER DILUTION
Effect of interest on convertible debt (after tax)
Average number of outstanding shares
Goodwill
98,040
8,176
3,998
The calculation of earnings per share is based on net income for the year attributable to
the shareholders in the Parent Company, amounting to TSEK 162,430 (136,902) and on a
weighted average number of outstanding shares totalling 39,188,028 shares (39,188,028).
before dilution
Capitalised Rental rights
expenditure
and similar
for IT systems
rights
Accumulated acquisition cost
Reclassifications
EARNINGS PER SHARE BEFORE DILUTION
Average number of outstanding shares
GROUP
162,430
39,188,028
136,902
60
39,188,028
4:14
3:49
The calculation of earnings per share is based on net income for the year attributable to
the shareholders in the Parent Company, amounting to TSEK 162,430 (136,902) and on a
weighted average number of outstanding shares totalling 39,188,028 shares (39,188,028).
PARENT COMPANY
Reclassifications
98,040
8,176
3,998
13,595
915
123
18,442
-
130,077
9,091
4,121
110,214
14,633
18,442
143,289
Reclassifications
110,214
13,860
10,035
14,633
-
18,442
-
143,289
13,860
10,035
134,109
14,633
18,442
167,184
Accumulated amortisation and
impairment
Amortisation
-71,288
-9,864
-7,612
-1,582
-18,442
-
-97,342
-11,446
-81,152
-9,194
-18,442
-108,788
Amortisation
-81,152
-10,413
-9,194
-1,321
-18,442
-
-108,788
-11,734
-91,565
-10,515
-18,442
-120,522
29,062
42,544
5,439
4,118
0
0
34,501
46,662
Of the year’s capitalised expenditure and reclassifications, a total of TSEK 6,803 (4,178) 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
Accommodation booking, Hemsedal
Accommodation booking, Åre
Ski rental, Åre
‘Årevisionen’
‘Skidåkarna Åre’
Hemsedal Group
Trysil Group
Tandådalens Fjällhotell Service AB
Hammarbybacken AB
Ski rental, Trysil
Fjällförsäkringar AB
31 Aug 2014
31 Aug 2013
13,805
1,106
524
747
3,419
2,872
50,732
2,400
1,510
11,848
484
13,333
1,106
524
747
3,419
2,804
48,593
2,400
1,510
11,348
484
89,447
86,268
An analysis is undertaken on an annual basis in order to identify any impairment requirements for intangible assets. Impairment testing is based on a calculation of value in use.
The most important assumptions in the five-year plan are growth in sales, 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 useful 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 7% (6) before tax. A total of 84% (84) of the Group’s goodwill is attributable to the
Norwegian entities, of which the majority refers to Trysil.
No impairment requirements would be implied by any reasonable potential changes in
the applied estimates and assumptions.
72
NOT ES
NOTE 14 TANGIBLE FIXED ASSETS
Buildings,
land and
land
improvements
GROUP
Plant,
machinery
and Constructions
equipment
in progress
Total
New acquisitions
Business combinations
Sales and disposals
Reclassifications, etc.
2,448,186
29,984
36,142
-8,796
42,537
-41,579
2,693,234
35,484
915
-40,688
24,759
-58,830
159,902
63,317
12,321
-2,476
-71,418
-788
5,301,322
128,785
49,378
-51,960
-4,122
-101,197
2,506,474
2,654,874
160,858
5,322,206
New acquisitions
Sales and disposals
2,506,474
37,733
-71,307
24,343
31,176
2,654,874
46,862
-23,373
28,663
41,146
160,858
83,627
-478
-63,041
-4,399
5,322,206
168,222
-95,158
-10,035
67,923
2,528,419
2,748,172
176,567
5,453,158
Accumulated depreciation and
impairment
Sales and disposals
Depreciation
-616,871
-57,953
9,648
-1,667,657
38,179
-144,288
47,770
-
-2,284,528
38,179
-202,241
57,418
-665,176
-1,725,996
-
-2,391,172
Sales and disposals
Depreciation
-665,176
17,715
-56,533
-7,495
-1,725,996
17,446
-126,116
-29,899
-
-2,391,172
35,161
-182,649
-37,394
-711,489
-1,864,565
-
-2,576,054
1,841,298
1,816,930
928,878
883,607
160,858
176,567
2,931,034
2,877,104
PARENT COMPANY
Buildings,
land and
land
improvements
New acquisitions
Sales and disposals
1,220,091
11,885
-5,352
14,648
1,639,023
21,331
-28,686
18,495
112,027
47,645
-37,264
2,971,141
80,861
-34,038
-4,121
1,241,272
1,650,163
122,408
3,013,843
New acquisitions
Sales and disposals
1,241,272
28,703
-1,812
12,864
1,650,163
41,355
-11,569
18,976
122,408
57,478
-354
-41,874
3,013,843
127,536
-13,735
-10,034
1,281,027
1,698,925
137,658
3,117,610
Accumulated depreciation and
impairment
Sales and disposals
Depreciation
-384,014
-27,019
-980,469
26,534
-86,227
-1,878
-1,838
-1,366,361
24,696
-113,246
-411,033
-1,040,162
-3,716
-1,454,911
Sales and disposals
Depreciation
-411,033
58
-26,784
-1,040,162
10,898
-80,129
-3,716
256
-
-1,454,911
11,212
-106,913
-437,759
-1,109,393
-3,460
-1,550,612
830,239
843,268
610,001
589,532
118,692
134,198
1,558,932
1,566,998
Plant,
machinery
and Constructions
equipment
in progress
Total
31 Aug 2014 31 Aug 2013
Reported value of land for properties in Sweden
Reported value of slopes
168,955
212,178
167,755
207,516
31 Aug 2014 31 Aug 2013
Reported value of land for properties in Sweden
Reported value of slopes
244,507
269,211
244,719
254,667
NOTE 15 PARTICIPATIONS IN GROUP COMPANIES
31 Aug 2014 31 Aug 2013
Opening balance
Acquisitions
Disposals
249,635
50
-150
249,635
-
Closing balance
249,535
249,635
SPECIFICATION OF THE PARENT COMPANY’S PARTICIPATIONS IN GROUP COMPANIES
31 Aug 2014
31 Aug 2013
SUBSIDIARY / CORPORATE IDENTITY NUMBER /
REGISTERED OFFICES
Number
of shares
Participatig
interest, %
Reported
Value
Reported
Value
Sälens Högfjällshotell AB / 556200-6311 / Sälen
2,600,000
100.0%
9,427
9,427
42,000
100.0%
3,000
3,000
100,000
100.0%
775
775
198
99.0%
198
198
5,000
100.0%
130,898
130,898
Tandådalens Fjällhotell Service AB / 556086-0990 / Sälen
Åre Invest AB / 556535-3579 / Åre
Vintertorget i Sälen KB / 969618-0786 / Sälen
SkiStar Norge A/S / NO977107520 / Hemsedal
Hammarbybacken AB / 556650-2570 / Stockholm
910
91.0%
1
1
1,000
100.0%
48,531
48,531
161,000
100.0%
25,279
25,279
1,000
100.0%
100
100
Bostadsrätter i Åre AB / 556725-5178 / Åre
-
100.0%
-
100
Fjällförsäkringar AB / 516406-0708 / Sälen
30,000
100.0%
30,484
30,484
2,000
100.0%
Vemdalens Sportaffärer & Skiduthyrning AB / 556068-9761 / Vemdalen
Fjällinvest AB / 556426-8380 / Sälen
Fjällmedia AB / 556755-1055 / Sälen
Lindvallen Fastighet AB / 556250-6997 / Sälen
842
842
249,535
249,635
NOT E S
73
Note 16 PARTICIPATIONS IN ASSOCIATED COMPANIES
31 Aug 2014
31 Aug 2013
Opening balance
Acquisitions
Disposals
Capital contribution
Dividend
Share of income
GROUP
244,383
50
-1,031
4,695
-4,468
275,780
1,340
-5,875
6,000
-474
-7,114
-25,274
Closing balance
243,629
244,383
PARENT COMPANY
31 Aug 2014
31 Aug 2013
Opening balance
Acquisitions
Reclassification
8,668
50
-
7,826
800
42
Closing balance
8,718
8,668
* See Note 10
SPECIFICATION OF THE GROUP’S AND THE PARENT COMPANY’S PARTICIPATIONS IN ASSOCIATED COMPANIES
31 Aug 2014
REGISTERED OFFICES
Revenues
Income
Assets
Liabilities
Lima Transtrand Fastighets AB, 556258-6817, Sälen
20,541
6,634
139,405
87,801
51,604
45
24,761
-
Åreföretagarna i Åre AB, 556171-5961, Åre
15,742
469
9,032
7,607
1,425
49
685
1,970
9,410
0
13,901
124,602
2,465
3,441
1,932
34,332
16,510
25,991
210
2,656
2,435
0
590
89,324
-1,042
0
61
2,078
625
-2,254
716
-19,499
517
2,192
-36
565
-981
-50
-2,113
-16,243
78,799
0
1,013
590,168
21,997
28,691
10,888
511,413
3,419
30,915
859
15,303
79,597
1,950
43,830
7,961
224,500
58,870
0
268
462,120
13,942
42,881
616
459,697
2,215
17,753
713
6,980
63,514
2,708
45,808
3,961
241,702
19,929
0
745
128,048
8,055
-14,190
10,272
51,716
1,204
13,162
146
8,323
16,083
-758
-1,978
4,000
-17,201
100
50
15
50
50
49
49
50
50
49
35
42
29
50
50
50
20
50
50
10,281
100
1,394
80,997
7,768
-6,411
9,266
101,621
1,952
2,479
27
1,401
8,039
-131
0
800
-1,010
50
15
130
5,711
42
800
50
243,629
8,718
Fjällvärme i Lindvallen AB, 556536-1895, Sälen
Åre 2007 AB, 556605-8458, Åre
World Cup Åre AB, 556749-7119, Åre
Ski Invest Sälen AB, 556755-1022, Sälen
Entréhuset i Sälen AB, 556756-7135, Sälen
Staven Naeringseiendom AS, NO988357014, Hemsedal
Skitorget AS, NO994110527, Trysil
Mountain Resort Trysil AS, NO996284115, Trysil
Knettsetra AS, NO971219807, Trysil
Trysilguidene AS, NO965147659, Trysil
HA aktiviteter AB, 556730-0065, Jämtlands län
Fjällmacken i Lindvallen AB, 556662-2956, Sälen
Skiab Invest AB, 556848-5220, Sälen
Trysilsuiterna, NO991276068/ Trysil
Hemsedal Eiendomselskap AS NO911713578/ Hemsedal
Tegefjäll Linbane AB 556659-6861
Trysil Hotellutvikling AS NO987054409 / Trysil
Åre 2019 AB 556973-4717 /Jämtlands län
Participating
Equity
Interest, %
Value of Group’s Reported value in
share of equity Parent Company
SPECIFICATION OF THE GROUP’S AND THE PARENT COMPANY’S PARTICIPATIONS IN ASSOCIATED COMPANIES
REGISTERED OFFICES
31 Aug 2013
Participating
Interest, %
Value of Group’s Reported value in
share of equity Parent Company
Revenues
Income
Assets
Liabilities
Equity
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
9,572
0
8,915
112,915
2,316
2,686
1,941
34,332
14,244
23,883
147
2,384
2,103
-
108
0
-122
-10,716
1,117
-1,761
814
-19,499
661
3,068
35
381
226
-5
-13,636
82,190
39,155
449
600,412
20,540
33,731
9,989
511,413
3,448
27,785
1,222
18,635
77,261
1,986
7,961
260,273
59,383
38,489
170
474,442
13,293
44,936
814
459,697
2,356
15,423
966
10,630
60,045
851
-1,081
3,961
198,025
22,807
666
279
125,970
7,247
-11,205
9,175
51,716
1,092
12,362
256
8,005
17,216
1,135
1,081
4,000
62,248
50
15
50
50
49
49
50
50
49
35
42
29
50
50
50
20
50
10,687
100
1,363
79,864
7,543
-5,335
8,550
97,336
1,691
1,689
42
1,397
8,525
-144
540
800
6,489
15
130
5,711
42
800
-
244,383
8,668
Fjällvärme i Lindvallen AB, 556536-1895, Sälen
Åre 2007 AB, 556605-8458, Åre
World Cup Åre AB, 556749-7119, Åre
Ski Invest Sälen AB, 556755-1022, Sälen
Entréhuset i Sälen AB, 556756-7135, Sälen
Staven Naeringseiendom AS, NO988357014, Hemsedal
Skitorget AS, NO994110527, Trysil
Mountain Resort Trysil AS, NO996284115, Trysil*
Knettsetra AS, NO971219807, Trysil
Trysilguidene AS, NO965147659, Trysil
HA aktiviteter AB, 556730-0065, Jämtlands län
Fjällmacken i Lindvallen AB, 556662-2956, Sälen
Skiab Invest AB, 556848-5220, Sälen
Trysilsuiterna AS, NO991276068/ Trysil
Hemsedal Eiendomselskap AS, NO911713578/ Hemsedal
Tegefjäll Linbane AB, 556659-6861
Trysil Hotellutvikling AS, NO987054409 / Trysil
*Most recent published values
This refers to the participating interest in capital, which corresponds to the share of votes in relation to the total number of shares. Where the participating interest is 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 in Radisson Blu in Trysil, included in the associated company, Trysil Hotelutvikling, have for some years been characterised by losses, for which reason an impairment
test has been prepared for these assets. This test is based on the five-year plan formulated by the Company's management, and applying a weak growth rate during the subsequent 30
years. A discount rate of 5.4% after tax has been used. The recoverable amount of assets has, thereby , been estimated at MSEK 178, representing an improvement over the course of the
past year. As the recoverable amount remains very similar to the reported value, a sensitivity analysis was prepared which indicates that revenue could be 5.2% lower and the discount rate
0.85% higher than forecasted. If there are changes larger than this, impairment could, possibly, be required.
74
NOT ES
Note 17 OTHER PARTICIPATIONS AND OTHER SECURITIES
HELD AS FIXED ASSETS
GROUP
31 Aug 2014
31 Aug 2013
84,636
24,055
-12,613
87
90,839
3,221
-9,770
453
-107
96,165
84,636
Opening acquisition cost
Acquisitions
Disposals
Reclassifications
Closing balance
PARENT COMPANY
Note 19 ACCOUNTS RECEIVABLE – TRADE
31 Aug 2014
31 Aug 2013
Acquisitions
Disposals
Reclassifications
12,971
1,010
-20
-
10,513
2,500
-42
Closing balance
13,961
12,971
Other participations and investments held as fixed assets are essentially comprised of
shares in tenant-owners’ associations and shares in smaller companies, as well as interest
accounts in Fjällförsäkringar AB. The items related to Fjällförsäkringar are reported at
fair value, the items related to tenant-owners’ associations are reported according to the
principles for tangible fixed assets and other items are reported at acquisition cost, as a
reliable fair value cannot be determined.
31 Aug 2014
31 Aug 2013
Shares in tenant-owners’ associations
Other securities held as fixed assets
Shares and participations
GROUP
53,901
26,354
15,910
37,113
32,690
14,833
Closing balance
96,165
84,636
31 Aug 2014
31 Aug 2013
Shares in tenant-owners’ associations
Shares and participations
1,061
12,900
1,061
11,910
Closing balance
13,961
12,971
The reported amount of accounts receivable includes a consideration of determined and
expected bad debt losses during the year amounting to TSEK 5,527 (648) in the Group,
of which determined bad debt losses amounted to TSEK 541 (607). In the Parent Company, determined and expected bad debt losses amounted to TSEK 769 (265), of which
determined bad debt losses amounted to TSEK 209 (224). During the year, the Group
has recovered previously determined and expected bad debt losses of TSEK 10 (314). The
Group’s provisions for expected bad debt losses have increased during the financial year
by TSEK 4,615, from TSEK 912 to TSEK 5,527. Accounts receivable from related parties
amounted to TSEK 1 (3) in the Group. For further information regarding related party
transactions, see Note 35.
MATURITY ANALYSIS OF OVERDUE BUT NOT IMPAIRED ACCOUNTS RECEIVABLE
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
30-90 days
90-180 days
3,141
4,915
6,500
2,358
Closing balance
8,056
8,858
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
30-90 days
90-180 days
2,507
1,905
5,302
1,261
Closing balance
4,412
6,563
GROUP
PARENT COMPANY
Note 20 OTHER CURRENT RECEIVABLES
GROUP
PARENT COMPANY
VAT recoverable
Current loans receivable
Tax account
Other
Closing balance
PARENT COMPANY
Note 18 OTHER NON-CURRENT RECEIVABLES
GROUP
31 Aug 2014
31 Aug 2013
Additional receivables
Settlement of receivables
Reclassifications to investments held as fixed assets
Other reclassifications
138,870
71,801
-30,976
0
20,000
3,743
97,555
47,509
-2,921
-495
0
-2,778
Closing balance
203,438
138,870
31 Aug 2014
31 Aug 2013
88,059
2,338
-30,546
98,595
2,778
-13,314
59,851
88,059
31 Aug 2014
31 Aug 2013
Receivables from associated companies
Other non-current, interest-bearing receivables
Other non-current, non-interest-bearing receivables
178,496
19,416
5,526
82,017
51,853
5,000
Closing balance
203,438
138,870
31 Aug 2014
31 Aug 2013
9,347
5,453
39,605
4,770
14,800
44,375
PARENT COMPANY
Additional receivables
Settlement of receivables
Closing balance
GROUP
PARENT COMPANY
Other non-current, interest-bearing receivables
Other non-current, non-interest-bearing receivables
Closing balance
31 Aug 2014
31 Aug 2013
9,502
15,749
467
78,232
6,777
38,206
34,263
103,950
79,246
2014-08-31
2013-08-31
VAT recoverable
Current loans receivable
Other
8,744
33,031
20,795
4,378
21,706
14,502
Closing balance
62,570
40,586
No other current receivables are due for payment.
Note 21 PREPAID EXPENSES AND ACCRUED INCOME
GROUP
31 Aug 2014
31 Aug 2013
Prepaid rental charges and leasing fees
Prepaid insurance
Accrued interest income
Other items
31,096
1,196
1,248
19,975
20,506
2,495
1,644
18,691
Closing balance
53,515
43,336
PARENT COMPANY
2014-08-31
2013-08-31
Prepaid rental charges and leasing fees
Prepaid insurance
Accrued interest income
Other items
27,032
947
330
30,657
15,654
1,034
1,093
22,774
Closing balance
58,966
40,555
NOT E S
75
Note 22 EQUITY
GROUP
Cont. Note 22 EQUITY
31 Aug 2014
31 Aug 2013
Translation reserve
Opening translation reserve
Exchange rate differences for the year
-27,423
14,843
-2,630
-24,793
Closing translation reserve
-12,580
-27,423
31 Aug 2014
31 Aug 2013
Hedging reserve
Opening hedging reserve
Value of hedging reserve
Deferred tax
-6,288
-30,253
6,649
-16,471
13,830
-3,647
Closing hedging reserve
-29,892
-6,288
31 Aug 2014
31 Aug 2013
Hedging reserve
Opening hedging reserve
Value of hedging reserve
Deferred tax
785
-27,120
5,966
-8,066
11,948
-3,097
Closing hedging reserve
-20,369
785
Profit brought forward
Profit brought forward comprises the previous year’s non-restricted equity, after distribution of dividends. This item constitutes, together with net income for the year, total nonrestricted equity – that is, the amount available to the shareholders.
NUMBER OF SHARES
GROUP
PARENT COMPANY
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.
31 Aug 2014 31 Aug 2013
Number of outstanding Class A shares at the beginning of the period
Number of outstanding Class B shares at the beginning of the period
1,824,000
1,824,000
37,364,028 37,364,028
Number of outstanding shares at the end of the period
39,188,028 39,188,028
As per 31 August, all shares have a quotient value of 50 öre (50).
The predominant goal is for the value of shareholders’ capital to grow. SkiStar shall have a
strong financial foundation in order to enable an offensive strategy, while at the same time
balancing operating risk. The goal is an equity/assets 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 0.68% during the financial year 2013/14. The operating margin is to
exceed 22% in the long term. SkiStar’s dividend policy entails that annual dividends are to be
equivalent to a minimum of 50% of income 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 due to the fact that the investments are largely financeable through own resources.
Note 23 APPROPRIATIONS
Translation reserve
The translation reserve includes all exchange rate differences arising upon the translation of
foreign subsidiaries’ financial statements prepared in a currency other than the Group’s presentation currency. The Parent Company and Group present their financial statements in SEK.
31 Aug 2014
31 Aug 2013
Group contribution
38,174
-612
Closing balance
38,174
-612
Hedging reserve
During the financial year, interest has been hedged through interest rate derivatives of
MSEK 600 and MNOK 200, with remaining maturities of 2, 7 and 8 years. Changes in the
value of interest rate derivatives are reported in comprehensive income.
Note 24 LIABILITIES TO CREDIT INSTITUTIONS
Profit brought forward and net income for the year
Profit brought forward includes profit earned in the Parent Company, and in subsidiaries
and associated companies after acquisition date.
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 has 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 by the Annual General Meeting on 13
December 2014. In 2013, 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 have not
been utilised, in order to cover accumulated losses. The requirement for transfers to the
statutory reserve was 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
totalling MSEK 500, with remaining maturities of 2, 7 and 8 years. Changes in the value of
interest rate derivatives are reported in comprehensive income.
76
NOT ES
PARENT COMPANY
GROUP
31 Aug 2014
31 Aug 2013
Due for payment within one year from balance sheet date
Due for payment 1-5 years from balance sheet date
602,925
1,465,339
666,171
1,435,635
Closing balance
2,068,264
2,101,806
655,667
468,168
646,150
452,841
Granted overdraft facilities amount to
Utilised portion of overdraft facilities
PARENT COMPANY
31 Aug 2014
31 Aug 2013
Due for payment within one year from balance sheet date
Due for payment 1-5 years from balance sheet date
313,396
673,785
340,000
730,502
Closing balance
987,181
1,070,502
Granted overdraft facilities amount to
Utilised portion of overdraft facilities
430,000
273,785
430,000
330,502
Overdraft facilities have a repayment period exceeding 12 months, for which reason they
are reported among non-current liabilities.
For further information on loan structures, commitment periods, etc., refer to Note 31.
Note 27 OTHER PROVISIONS
Note 25 PENSION PROVISIONS
GROUP
31 Aug 2014
31 Aug 2013
Defined benefit plans
Other pension commitments
4,768
1,632
3,975
Closing balance
4,768
5,607
31 Aug 2014
31 Aug 2013
Other pension commitments
4,677
3,492
Closing balance
4,677
3,492
GROUP
31 Aug 2014
31 Aug 2013
Electricity certificates
567
708
Closing balance
567
708
PARENT COMPANY
PARENT COMPANY
31 Aug 2014
31 Aug 2013
Electricity certificates
567
708
Closing balance
567
708
GROUP
Commitments for pensions amount to MSEK 4.8 (4.0), while the fair value of plan assets
totals MSEK 4.4 (3.7). An amount of MSEK 0.4 refers to payroll tax. The change compared
with the previous year is due to the revision of defined benefit plans in Norway. 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 salaries exceed 10 base income amounts. According to statement UFR 3 issued
by the Swedish Financial Accounting Standards Council’s Emerging Issues Task Force,
this constitutes a multi-employer defined benefit plan. 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 an expense in the
Statement of Comprehensive Income for the Group as and when they arise. The expenses
for the year for pension insurance in Alecta amount to MSEK 6.2 (6.2). Total contributions
for the year for pension insurance amounted to MSEK 16.0 (20.9). 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 147% (145). The collective funding ratio is
the market value of Alecta’s assets as a percentage of insurance commitments, calculated
according to the assumptions applied in Alecta’s actual calculations, which do not correspond with IAS 19.
Note 26 RECEIVABLES FROM AND LIABILITIES TO
GROUP COMPANIES
RECEIVABLES FROM GROUP COMPANIES
Sälens Högfjällshotell AB
Tandådalens Fjällhotell Service AB
SkiStar Norge A/S
Hammarbybacken AB
Vemdalen Logi AB
Fjällinvest AB
Hundfjället Centrum AB
Closing balance
LIABILITIES TO GROUP COMPANIES
Åre Invest AB
Vemdalens Sportaffärer & Skiduthyrning AB
Vintertorget i Sälen KB
SkiStar Fastighets AB
Hundfjället Servicecenter AB
Fjällmedia AB
Hundfjället Centrum AB
Vemdalen Logi AB
Bostadsrätter i Åre AB
31 Aug 2014
31 Aug 2013
Opening value
Purchases
Cancellations
708
813
-954
554
1,452
-1,298
Closing value
567
708
PARENT COMPANY
31 Aug 2014
31 Aug 2013
Opening value
Purchases
Cancellations
708
813
-954
554
1,452
-1,298
Closing value
567
708
SkiStar AB was registered with the Swedish Energy Agency in January 2009 as a powerintensive industry. As a result of this, SkiStar AB is obliged to meet quota requirements
and is required to present a quota obligation declarations. For each MWh of quota obliged
electric power consumed during 2013, a total of 0.179 electricity certificates were annulled.
Thanks to the registration as a power-intensive industry, expenses for electricity decreased
by MSEK 1 during 2013.
Note 28 ACCRUED EXPENSES AND DEFERRED INCOME
GROUP
31 Aug 2014
31 Aug 2013
69,046
84,668
12,911
3,036
32,688
94,148
13,885
-
70,116
84,772
10,745
1,937
32,688
130,967
-
310,382
331,225
31 Aug 2014
31 Aug 2013
1,361
14,669
2,208
12,911
3,084
1,743
9
-
1,361
14,718
2,208
16,023
2,627
1,743
5,034
10
10
35,985
43,734
The majority of the receivables from and liabilities to Group companies relate to the
Group account.
31 Aug 2014
31 Aug 2013
Accrued salary expenses and social security contributions
Accrued financial expenses
Accrued property expenses
Other items
45,938
13,847
4,017
22,533
54,508
15,824
6,134
23,062
Closing balance
86,335
99,528
PARENT COMPANY
31 Aug 2014
31 Aug 2013
Accrued salary expenses and social security contributions
Accrued financial expenses
Accrued property expenses
Other items
36,748
5,882
1,968
10,304
37,787
6,453
3,548
10,505
Closing balance
54,902
58,293
Note 29 PLEDGED ASSETS AND CONTINGENT LIABILITIES
PLEDGED ASSETS
GROUP
31 Aug 2014
31 Aug 2013
773,202
7,000
720,873
4,768
799,313
722,018
-
Closing balance
1,505,843
1,521,331
of which pledged for own liabilities
1,505,843
1,521,331
Property mortgages
Floating charges
Assets, SkiStar Norwegian Group
Other pledged assets
PARENT COMPANY
31 Aug 2014
31 Aug 2013
Property mortgages
Floating charges
Other pledged assets
527,211
7,000
4,677
537,346
-
Closing balance
538,888
537,346
of which pledged for own liabilities
538,888
537,346
CONTINGENT LIABILITIES
GROUP
31 Aug 2014
31 Aug 2013
Contributions with conditional repayment liability
Guarantee commitments
Other contingent liabilities
3,251
414,078
8,200
6,883
410,194
8,200
Closing balance
425,529
425,277
PARENT COMPANY
31 Aug 2014
31 Aug 2013
Contributions with conditional repayment liability
Guarantee commitments for Group companies
Other guarantee commitments
Other contingent liabilities
3,251
1,047,046
370,306
8,200
3,723
961,162
370,306
8,200
Closing balance
1,428,803
1,343,391
Guarantee commitments refer to guarantees for bank loans raised by Skistar AB and its
subsidiaries.
NOT E S
77
Note 31 FINANCIAL RISKS AND
FINANCIAL POLICIES
Note 30 CASH FLOW STATEMENT
GROUP
PARENT COMPANY
1 Sep 2013
1 Sep 2012
1 Sep 2013
1 Sep 2012
-31 Aug 2014 -31 Aug 2013 -31 Aug 2014 -31 Aug 2013
Interest paid and dividends received
Interest received
Interest paid
Adjustments for non-cash items
Less Share of associated companies’ income
Dividends from associated companies
Dividends from subsidiaries
Depreciation/amortisation and impairment of assets
Unrealised exchange rate differences
Capital gains from the sale of fixed assets
Pension provisions
Other provisions
4,180
-38,390
4,868
-49,592
1,049
-13,798
4,468
25,277
205,083
-343
-5,731
-845
-141
218,611
-538
-39,543
2,792
153
118,645
783
-7,225
1,185
-141
3,328
-26,472
612
124,690
-22,597
3,094
154
202,491
206,752
113,247
105,953
Acquisition of subsidiaries and other business entities
Acquired assets and liabilities:
Operating receivables
-
50,923
4,153
294
-
-
Total assets
-
55,370
-
-
Purchase consideration
Less cash and cash equivalents in acquired operations
-
0
-294
-
-
Effect on cash and cash equivalents
-
-294
-
-
Borrowings
Operating liabilities
-
43,375
982
-
-
Total liabilities
-
44,357
-
-
Sale of subsidiaries and other business entities
Divested assets and liabilities:
-
-5,875
-
-
Total capital gains, liabilities and provisions
-
-5,875
-
-
27,357
26,277
2,750
2,859
27,357
26,277
2,750
2,859
The following components are included in cash and cash equivalents:
ACQUISITION OF ADDITIONAL SHARES IN FAGERÅSEN INVEST AS
The acquired company's net assets at the acquisition date
1 Sep 2013
-31 Aug 2014
Inventories
Accounts receivable and other receivables
Interest-bearing liabilities
Accounts payable and other operating liabilities
Net identifiable assets and liabilities
Non-controlling interest
Fair value of previously owned shares
50,923
4,090
63
294
43,375
982
11,013
1,652
5,985
FINANCIAL RISKS
Financial risks not only entail 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, but rather, to maximise return, short-term
credits are to be amortised when significant liquidity flows
are available. 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 risks refer to the risk of changes in currency exchange rates impacting the Statement of Comprehensive
Income, Statement of Financial Position and/or cash flow
statement for 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
tax, approximately 12% (12) is attributable to the 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 with a situation in which the NOK is stronger in relation to the SEK. A
sensitivity analysis indicates that a change in the exchange
rate NOK/SEK by +/- 10% would influence income by MSEK
+/- 2 and equity by MSEK +/- 38. 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 67% of the
guests in Hemsedal come from outside Norway and 28% of
these are Swedish. In Trysil, the proportion of foreign guests
is 87%, of whom 37% are Swedish. The income statements
and balance sheets of foreign subsidiaries 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, are partly financed
in EUR and USD, and are hedged if 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 these purchases. During the financial year 2013/14, goods and services were acquired by the
Group for a total of MEUR 3.3 (12.8). Purchases are also
made in other currencies, but the value of such purchases is
deemed to be marginal.
CREDIT RISKS
The risk that SkiStar’s customers will not fulfil their obligations constitutes a customer credit risk. In light of the fact
that a large proportion of sales is settled in cash or through
advanced payments, and due to the fact that the vast majority of accounts receivable items refer to small amounts,
the customer credit risk is assessed to be low.
INTEREST AND LIQUIDITY RISKS
SkiStar’s Finance 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/assets ratio is 39% (38),
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 market situation and interest rates are
reasonable, borrowing at longer fixed-interest rates can be
undertaken. Such decisions are undertaken by the finance
team and the Board of Directors. Net interest-bearing
liabilities at year-end amounted to MSEK 2,073 (2,107). Net
interest income amounted to MSEK 53.5 (59.1) during the
financial year and average interest expenses to 3.0% (3.2).
As of balance sheet date, net liabilities amounted to MSEK
1,815 (1,904). If the interest rate level were to increase by
one percentage point, SkiStar’s interest expenses would increase by approximately MSEK 10 (21), the overall effect of
which would largely influence net financial income in net income for the year and with that, equity. In order to offset the
strong fluctuations in cash flow over the year, SkiStar has
just over fifty percent of its loan volume comprised of shortterm loans. SkiStar has negotiated 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. As per 31 August 2014, all covenants had been
complied with. The Group’s cash and cash equivalents per
balance sheet date amounted to MSEK 27 (26). Unutilised
overdraft facilities amounted to MSEK 187 (193).
78
NOT ES
Cont. Note 31 FINANCIAL RISKS AND FINANCIAL POLICIES
In accordance with the disclosure requirements in IFRS 13, the methods applied in the valuation of financial instruments at fair value in the balance sheet are described below. The
methodology makes use of valuations according to 3 different levels:
Level 1: Fair value is determined according to prices quoted on an active market for similar
instruments.
Level 2: Fair value is determined according to either directly (such as price) or indirectly
(derived from prices) observable market data other than Level 1 data.
Level 3: Fair value is determined based on data which is 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 rate swaps are valued at fair value in the Statement of Financial
Position. The interest coupon portion is reported in income for the year as a part of interest
expenses. Unrealised changes in the fair value of the interest rate swaps are reported in other
comprehensive income and are included as part of the hedging reserve until the hedged
item affects income for the year, and as long as the criteria for hedge accounting and effectiveness are met. The gains or losses relating to the ineffective portion of the unrealised
changes in value of interest rate swaps is reported in income for the year. As of 31 August
2014, there was no ineffective portion of such unrealised changes in value. As of 31 August
2014, the accumulated effect of these cash flow secured interest rate swaps is reported in
eqity at MSEK 30 (5). The Company has interest rate swaps amounting to MSEK 600 and
MNOK 200, with remaining maturities of 2, 7 and 8 years. These are valued in the financial
statements on the basis of observable market data, in accordance with Level 2 of the fair
value hierarchy in IFRS 13.
FORWARD EXCHANGE AGREEMENTS
A currency derivative is employed to hedge the risk of highly probable, forecasted currency
flows from the revenues arising from payments in DKK made by Danish customers. These
currency derivatives are matched with underlying liquidity forecasts for the net cash flow in
DKK. Under the condition that the effectiveness of these hedges can be assured, the change
in market value for each security transaction is reported in other comprehensive income
until it is reversed to the income statement as revenue/expenses. The gain or loss attributable to the ineffective portion of unrealised changes in the value of the forward exchange
agreement is reported in net income for the year. As of 31 August 2014, the Group reported
no forward exchange agreements. As of 31 August 2013, the accumulated currency effect on
these cash flow secured currency derivatives was reported at MSEK 1 in equity. These were
valued in the financial statements on the basis of observable market data, in accordance
with Level 2 of the fair value hierarchy in IFRS 13
FAIR VALUE
Valuation at fair value is carried out when reliable and observable market data is available on
balance sheet date. For this reason, interest rate swaps and forward exchange agreements
are valued at fair value. Other securities held as fixed assets are essentially comprised of
shares in tenant-owners’ associations and shares in smaller companies, as well as of interest
accounts in Fjällförsäkringar AB. The interest accounts are reported at fair value, the shares
in tenant-owners’ associations are reported according to the principles for tangible fixed
assets and other items are reported at acquisition cost, as a reliable fair value cannot be
determined. Other reported values of financial assets and liabilities can be said to conform to
fair value, as all funding is based on short-term interest rates, either at current interest rates
or fixed for a maximum of three months
LOAN STRUCTURE
Nominal
amount
in original
currency
Reported
value
Overdraft facilities, variable interest
accrued interest
Bank loan, variable interest
accrued interest
accrued interest
273,785
780
516,000
1,693
70,000
20
SWEDEN
accrued interest
NORWAY
Overdraft facilities, variable interest
accrued interest
accrued interest
accrued interest
accrued interest
Total loans
Total accrued interest on bank loans
Maturity
Fair value
of loan
273,785
780
516,000
1,693
70,000
20
2016-08-31
273,785
2015-06-28
516,000
2015-02-28
70,000
400,000
400,000
2016-08-31
400,000
7
7
Nominal
amount
in original
currency
Reported
value
Maturity
Fair value
of loan
172,275
620
353,750
2,766
150,000
106
40,500
42
194,383
620
399,148
2,766
169,250
106
45,698
42
Ongoing/
framework
agreement
2016-08-31
2016-08-31
2015-11-30
194,383
620
399,148
2,766
169,250
106
45,698
2,068,264
6,034
FINANCIAL INSTRUMENTS AT FAIR VALUE, MSEK
Interest rate swaps
Forward exchange agreements
2014
2013
39
-
7
2
The items are reported as liabilities in the balance sheet.
The nominal value of the interest rate swaps was, as of 31 August 2014, MSEK 838 (838)
and the nominal value of the forward exchange agreements was MSEK 0 (0).
FINANCIAL ASSETS BY VALUATION CATEGORY, MSEK
Availablefor-sale
financial
assets
2014
Participations and other investments held as fixed assets 1)
Receivables from associated
companies
Accounts receivable - trade
Total financial assets
Loans and
accounts
receivable
Derivatives
used for
hedge
reporting
96
-
-
96
96
-
178
-
178
178
25
-
31
104
27
-
31
129
27
31
129
27
121
340
-
461
461
Total
reported
value
Fair
value
Of financial investments, a total of 96 (85) are, primarily, investments in tenant-owner
associations and other small shareholdings. The tenant- owner associations are valued
according to the regulations for tangible fixed assets, and other items are valued at Level 3
according to the valuation hierarchy in IFRS 13.
1)
FINANCIAL ASSETS BY VALUATION CATEGORY, MSEK
Availablefor-sale
financial
assets
2013
Financial investments
Receivables from associated
companies
Derivatives
1)
Total financial assets
Loans and
accounts
receivable
Derivatives
used for
hedge
reporting
Total
reported
value
Fair
value
85
-
-
141
141
-
82
-
82
82
56
-
31
79
26
1
-
1
31
79
26
1
31
79
26
141
218
1
360
360
Other
financial
liabilities
Total
reported
value
Fair
value
83
-
2,068
39
83
14
2,068
39
83
14
FINANCIAL LIABILITIES BY VALUATION CATEGORY, MSEK
2014
Derivatives
used for
hedge
Borrowings
reporting
Borrowings
Derivatives
Accrued interest
Advance payments from
customers
2,068
14
39
-
-
-
66
66
66
Total financial liabilities
2,082
39
149
2,270
2,270
Other
financial
liabilities
Total
reported
value
Fair
value
65
-
2,102
10
65
16
2,102
10
65
16
Finansiella skulder per värderingskategori MSEK
2013
Derivatives
used for
hedge
Borrowings
reporting
Borrowings
Derivatives
Accrued interest
Advance payments from
customers
2,102
16
10
-
-
-
59
59
59
Total financial liabilities
2,118
10
124
2,252
2,252
THE GROUP'S MATURITY STRUCTURE AS REGARDS UNDISCOUNTED CASH FLOWS
FOR FINANCIAL LIABILITIES AND DERIVATIVES
MSEK
Borrowings 2)
Derivatives
Accounts payable - trade
Advance payments from customers
Within 1 year
1-5 years
31
631
83
66
1,471
17
-
A portion of the loan is considered negotiable, which would result in less of a cash flow
effect than that reported in the table for years 2-5.
2)
Other financial liabilities are comprised of interest rate swaps MSEK 39 (7) and forward
exchange agreements of MSEK 0 (2) and of liabilities with a maturity within one year.
The fair value of interest rate swaps reported by the Parent Company amounts to
MSEK 26 (0).
NOT E S
79
Note 32 INCOME FROM SECURITIES ACCOUNTED FOR
AS FIXED ASSETS
GROUP
Impairment
Capital gains
Capital loss
PARENT COMPANY
Dividend
Note 35 RELATED PARTIES
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
-591
-120
851
-504
-591
227
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
-
384
-
384
The year’s capital gains refer to realised losses on the Group’s participation in
Fjällförsäkringar AB.
Bank balances
Non-current receivables
Tax account
Exchange gains
PARENT COMPANY
Bank balances
Non-current receivables
Tax account
Exchange gains
Of which external
Of which intra-Group
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 contract work from the Peab Group in conjunction with construction investments in its resorts.
Clifton-Swerock
The Company is part of the Peab Group and delivers concrete products for contract work.
Fabege
Erik Paulsson is Chairman of the Board of Fabege and has a significant influence. SkiStar
rents office space from Fabege in central Stockholm.
Note 33 INTEREST REVENUES AND SIMILAR PROFIT/LOSS ITEMS
GROUP
RELATIONSHIPS WITH 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 2014
represented approximately 60% (58) of the votes in the Group’s Parent Company.
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
2,108
3,844
17
125
4,156
1,998
4,330
31
988
3,097
10,250
10,444
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
312
1,049
16
94
3,685
2,966
1,369
28
608
2,880
5,156
7,851
91
5,065
2,502
5,349
Hansan
Erik Paulsson is the CEO 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 a controlling interest in subsidiaries, see Note 15. Furthermore, the SkiStar Group has transactions with associated companies in which SkiStar does
not have a controlling interest, 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 accommodation agency operations and from accounting
and property services on behalf of 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 TERMS AND CONDITIONS
Transactions with related parties have taken place on market-based terms.
Note 34 INTEREST EXPENSES AND SIMILAR PROFIT/LOSS ITEMS
GROUP
Subordinated debenture
Tax account
Exchange losses
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
57,061
0
265
0
5,796
65,411
60
132
844
3,359
63,122
69,806
1 Sep 2013
-31 Aug 2014
1 Sep 2012
-31 Aug 2013
25,831
0
58
3,228
32,922
60
49
3,039
29,117
36,070
RELATED PARTY TRANSACTIONS, SUMMARY
GROUP
Peab
Cliffton
Fabege
Hansan
PARENT COMPANY
Subordinated debenture
Tax account
Exchange losses
Of which external
Of which intra-Group
91
5,065
2,502
5,349
All items derive from financial items at acquisition cost, except for items arising from
interest rate swaps, MSEK 10.3 (4.3) for the Group and MSEK 5 (3) for the Parent Company.
Interest rate swaps are included in Liabilities to credit institutions for both the Group and
the Parent Company.
Sales to Purchases from
related parties related parties
1 Sept 2013
1 Sept 2013
-31 Aug 2014
-31 Aug 2014
35,248
313
1
82,228
15,525
1
1,896
Receivables
from related
parties
31 Aug 2014
Liabilities
to related
parties
31 Aug 2014
46,638
12
-
5,736
5,272
14
865
-
144
-
36,427
99,650
46,794
11,022
Peab
Cliffton
Fabege
Hansan
20,464
313
1
865
75,802
15,525
1
1,896
-
19,657
12
144
5,492
5,272
14
-
Totalt
21,643
93,224
19,813
10,778
Sales to Purchases from
related parties related parties
1 Sept 2012
1 Sept 2012
-31 Aug 2013
-31 Aug 2013
Receivables
from related
parties
31 Aug 2013
Liabilities
to related
parties
31 Aug 2013
Totalt
PARENT COMPANY
GROUP
Peab
Cliffton
Fabege
Hansan
35,618
270
927
45,823
13,386
1,897
1,737
74
102,066
2
160
9,971
2,012
14
-
Totalt
36,815
62,917
102,228
11,997
Peab
Cliffton
Fabege
Hansan
22,992
267
927
41,397
6,846
1,897
1,737
74
42,355
2
160
9,875
637
14
-
Totalt
24,186
51,951
42,517
10,526
PARENT COMPANY
80
NOT ES
Note 36 EVENTS AFTER BALANCE SHEET DATE
Note 38 DISCLOSURE REGARDING THE PARENT COMPANY
The booking volume for accommodation during the coming season is five percent better
than at the same point in time during the previous year. The holiday periods remain strong,
and there are also more bookings during the periods between holidays this year. The
calendar during the coming season is favourable for the Company, with the possibility of a
large number of consecutive holiday days during the Christmas and New Year period, and
with an earlier Easter, at the beginning of April.
During the autumn of 2014, efforts to enhance efficiency and achieve economies of scale
within the Group have intensified through the “Five Destinations, One Company” project.
This project will be implemented in all operations conducted by the Company where
savings and economies of scale can be achieved.
As of the financial year 2014/15, SkiStar will be taxed on the entirety of its income from
operations in Sweden, as the regulations regarding the tax-free status of property revenues
from operations located on specially assessed property are to be discontinued. Nonetheless,
SkiStar currently reports MSEK 785 of unutilised loss-carry forwards, implying that, under
the currently applicable regulatory framework, the Company is not expected to pay tax
for a number of years. The Board of Directors proposes that the Annual General M
eeting
approve a dividend of SEK 2.50 per share, totalling MSEK 98.
The Annual General Meeting will be held at Experium in Sälen at 14.00 o
n 13 December
2014.
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 headquarters 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.
Note 37 IMPORTANT ACCOUNTING ESTIMATES
AND ASSUMPTIONS
Company management undertakes estimates and assumptions regarding the future. The
results of these estimates and assumptions are used to assess the reported values of
assets and liabilities. The actual outcome may differ from these estimates and assumptions.
Certain estimates and assumptions entailing a risk of adjustment of fair values for assets
and liabilities are described below.
VALUATION OF GOODWILL
In calculating the recoverable amount of cash-generating units for the assessment of any
impairment requirement of goodwill (so called impairment testing), several assumptions
have been made regarding the future circumstances of the Company and other relevant
parameters. These assumptions are described in Note 13. Any changes which cannot
reasonably be expected pursuant to these estimates and assumptions could have an
impact on goodwill, although this risk is low, given the fact that the recoverable amounts
largely exceed the reported goodwill values.
TAXES
Changes in tax legislation and changes in established practice in the interpretation of tax
rules may affect the value of deferred tax assets. Refer to Note 11 for further information.
DISPUTES
As of the date of preparation of this document, SkiStar is not involved in any legal dispute
of substantial significance to the Group.
ACCOUNTING STANDARDS AND INTERPRETATIONS
New accounting standards and new interpretations of existing standards may result in
changes to financial reporting, implying that certain future transactions would be treated
differently than under the currently applied regulations and interpretations
NOT E S
81
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.
Sälen, 6 November 2014
Erik Paulsson
Chairman of the Board
Mats Paulsson
Board Member
Mats Årjes
CEOBoard Member
Per-Uno Sandberg
Board Member
Eivor Andersson
Board Member
Pär Nuder
Board Member
Katarina Hjalmarsson
Employee representative
Bengt Larsson
Employee representative
Our audit report was presented on 6 November 2014
Ernst & Young AB
Erik Åström
Authorised Public Accountant
The publication of the Annual Report and Consolidated Accounts was approved by the Board of Directors on 6 November 2014.
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 2014.
82
NOT ES
Auditor’s report
To the annual meeting of the
shareholders of SkiStar AB
(publ), corporate identity
number 556093-6949
Report on the annual accounts
and consolidated accounts
We have audited the annual accounts and consolidated accounts of SkiStar AB (publ) for the
financial year 1 September 2013 – 31 August
2014. The annual accounts and consolidated
accounts of the company are included on pages
48-82.
Responsibilities of the Board of Directors
and the Managing Director for the annual
accounts and consolidated accounts
The Board of Directors and the Managing
Director are responsible for the preparation
and fair presentation of these annual accounts
in accordance with the Annual Accounts Act
and of the consolidated accounts in accordance
with International Financial Reporting Standards, as adopted by the EU, and the Annual
Accounts Act, and for such internal control
as the Board of Directors and the Managing
Director determine is necessary to enable the
preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.
Auditor’s 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 requirements 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 judgement, including the assessment of the risks of material misstatement 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 company’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 appropriateness of accounting policies used
and the reasonableness of accounting estimates
made by the Board of Directors and the Managing
Director, 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 provide a
basis for our audit opinions.
Opinions
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 2014 and of its
financial performance and its 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 2014 and of their financial performance and cash flows for the year then ended
in accordance with International Financial
Reporting Standards, 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
meeting of shareholders adopt the income statement and balance sheet for the parent company
and the group.
Report on other legal and regulatory requirements
In addition to our audit of the annual accounts
and consolidated accounts, we have also
audited the proposed appropriations of the
company’s profit or loss and the administration
of the Board of Directors and the Managing
Director of SkiStar AB (publ), for the financial
year 1 September 2013 – 31 August 2014.
Responsibilities of the Board of Directors
and the Managing Director
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 Managing Director are responsible for
administration under the Companies Act.
Auditor’s 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 company’s profit or loss, we examined [the Board of
Directors’ reasoned statement and a selection
of supporting evidence in order to be able to
assess] whether the proposal is in accordance
with the 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 company in order to determine whether any member
of the Board of Directors or the Managing Director is liable to the company. We also examined
whether any member of the Board of Directors
or the Managing Director has, in any other
way, acted in contravention of the 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 provide
a basis for our opinions.
Opinions
We recommend to the annual meeting of
shareholders that the profit be appropriated in
accordance with the proposal in the statutory
administration report and that the members of
the Board of Directors and the Managing Director be discharged from liability for the financial
year.
Sälen, 6 November 2014
Ernst & Young AB
Erik Åström
Authorized Public Accountant
AUD I T R EP O RT
83
CORPORATE
GOVERNANCE REPORT
DEAR SHAREHOLDER,
What began in the middle of the 1970s as a
recreational activity for the workers of the
Peab construction company – a humble, one
lift resort in Lindvallen, which was listed
on the stock exchange twenty years ago, is
today a corporate group providing skiing
experiences to over four million guests
each year and employing over a thousand
employees in Sweden and Norway.
SkiStar’s corporate governance builds
on a practical, pertinent application of the
relevant regulatory frameworks. The Board
of Directors has a range of responsibilities
including working with matters of overall
Group strategy and ensuring that the dayto-day operations function smoothly thanks
to the implementation of efficient, effective
processes. SkiStar shall have a strong
financial base, enabling an offensive strategy
designed to achieve the operational goals.
The Board of Directors is behind the Groupwide development of the “Five Destinations,
One Company” project.
We live, geographically, near to our
CORPORATE GOVERNANCE
SkiStar AB’s corporate governance is based on
the Articles of Association, the Swedish Companies Act, Nasdaq OMX Stockholm AB’s rules for
issuers, the Swedish Code of Corporate Governance, and other relevant Swedish and foreign
laws and regulations.
The guidelines regarding the Swedish Code
of Corporate Governance are available on the
website of the Swedish Corporate Governance
Board (www.bolagsstyrning.se). Internal guidelines such as the Articles of Association and this
document are available on SkiStar’s website
(http://corporate.skistar.com).
OWNERSHIP STRUCTURE
As per 31 August 2014, SkiStar had 28,838
shareholders according to the shareholder’s
register administered by Euroclear Sweden
AB. The three largest shareholders, in terms of
voting rights, represent 64.75% of the votes and
49.99% of the share capital. The distribution is
shown in the administration report on page 48.
Holdings by Swedish private individuals, either
directly or through companies, amounted to
70.15% and Swedish institutional ownership
amounted to 19.78% of share capital. Foreign
private individuals represent 0.18% and foreign
institutional ownership represents 9.89% of the
share capital.
84
CORPORAT E GOVER N A N C E R E PORT
contribute to the long-term development of
skiing destinations and regions where we
operate.
SkiStar’s development is made possible
only thanks to the hard work of our employees and thanks to our shared visions, high
ambitions and optimism for the future. An
airport in Sälen-Trysilfjällen and an Alpine
World Ski Championships in Åre represent
two concrete sources of opportunities in the
near future.
On behalf of the Board, I would like to
thank SkiStar’s team – you are the key to
our success. I would also like to extend our
gratitude to our guests and all of our shareholders for the continued confidence you
show in us and our operations.
destinations and the product that we provide,
and we take our guests’ and customers’ expectations with the utmost seriousness – to deliver
memorable winter experiences. Through
our activities within the property sector, we
SHARE CAPITAL AND VOTING RIGHTS
SkiStar’s share capital per 31 August 2014
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 the
holder to 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 a single shareholder may exercise during a General Meeting, other than the
inherent limitation implied by the number of
shares in the Company.
ANNUAL GENERAL MEETING
The 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 may be represented by a proxy. A shareholder or a proxy
may have no more than two representatives.
Notice of the Annual General Meeting will
be issued in the Swedish Official Gazette and
on the Company’s website, http://corporate.ski
Erik Paulsson
Chairman of the Board of Directors
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 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.
The Annual General Meeting will be held in
Sälen, Åre or Stockholm.
The following matters will 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 report 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.
STRUCTURE FOR CORPORATE GOVERNANCE
NOMINATING
COMMITTEE
ANNUAL
GENERAL MEETING
EXTERNAL AUDIT
COMPENSATION
COMMITTEE
BOARD OF DIRECTORS
AUDIT
COMMITTEE
GROUP MANAGEMENT
TWO BUSINESS AREAS,
PROPERTY DEVELOPMENT AND DESTINATIONS
INTERNAL REGULATIONS
Articles of Association, Formal work plan for the Board of
Directors, Terms of reference issued by the Board of Directors
to the CEO, Decision-making hierarchies for the Group and the
business areas, policies, rules, guidelines and instructions
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 for the Board of Directors and the
CEO.
10.Determination of remuneration to the
members of the Board of Directors and
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 2013
A total of 193 shareholders, representing 73% of
the votes in the Company, attended the Annual
General Meeting held on 14 December 2013 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 Company. 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 market and may only occur at a price within the
prevailing registered price range, namely the
range between the highest purchase consideration 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
EXTERNAL REGULATIONS
ASwedish Companies Act, Rules for issuers,
Swedish Code of Corporate Governance,
other relevant legislation and regulations.
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 authorisation 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 has not been exercised as of the signing
date of this annual report.
ANNUAL GENERAL MEETING 2014
The Annual General Meeting for 2014 will
be held at Experium in Sälen at 2 pm on
13 December. For further information, visit
http://corporate.skistar.com.
NOMINATION COMMITTEE
The Company’s Nomination Committee is
appointed at the Annual General Meeting for a
period of one year. The Nomination Committee’s duties are to prepare proposals for Board
Members, remuneration for Board Members,
the Chairman of the Board, the Chairman of
the Annual General Meeting and the Nomination Committee for the following financial
year, as well as, when applicable, to prepare
proposals for auditors and auditors’ remuneration, assisted by the Audit Committee. The
Nomination Committee, prior to the Annual
General Meeting 2014, had the following members: Mats Paulsson, Chairman, for company
and family, Magnus Swärd for Backahill AB,
Leif Haglund for Nordea Allemansfond Alfa and
Per-Uno Sandberg acting in his own interest. All
shareholders have had the possibility to address
proposals to the Nomination Committee.
THE BOARD OF DIRECTORS
Composition of the Board
The Board is appointed by the Annual General
Meeting in accordance with the Companies Act
and the Board Representation (Private Sector
Employees) Act. The Articles of Association
include no regulations on the appointment and
dismissal of the Board’s members, apart from
regulations concerning the number of members
and deputies.
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 for a period of
one year.
At the Annual General Meeting held on 14
December 2013, seven members were elected
to the Board: Erik Paulsson, Chairman, Mats
Paulsson, 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 AB, and Mats Paulsson, in his role as
deputy Chairman of the Board of construction
firm Peab, with whom SkiStar have construction contracts and Erik Paulsson, on the basis of
close familial relationship with Mats Paulsson.
See Deviations from the Swedish Code of Corporate Governance on page 87. 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
CO R P O R ATE G OV E R NANCE R EP O RT
85
follow up the Group’s business and development. 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 2013/14, the Board
held six scheduled meetings; the attendance of
the members is shown in the table on page 87.
The work of the Board is evaluated continuously. SkiStar’s CFO, Åsa Wirén, is the Board’s
secretary.
Remuneration Committee
At the Board meeting following election on 14
December 2013, Erik Paulsson was elected
chairman of the Remuneration Committee
and Per-Uno Sandberg and Mats Paulsson were
elected as members. The Remuneration Committee prepares issues to be addressed by the
Board concerning salaries, pension benefits,
bonus programmes and other employment
benefits for the CEO and management of
SkiStar. The Remuneration Committee has no
decision-making authority; rather, it prepares
information and reports matters to the Board
as a whole. The Remuneration Committee held
two meetings during the financial year, at which
all Committee members were present, refer to
page 87.
Audit Committee
At the Board meeting following election on 14
December 2013, Per-Uno Sandberg was elected
Chairman of the Audit Committee, and Eivor
Andersson and Pär Nuder were elected members. The Audit Committee is responsible for
ensuring that the financial reporting maintains
a high standard. The Committee also maintains
regular contact with the Company’s auditors,
draws up guidelines regarding negotiations for
services from the Group’s auditing firm and
evaluates audit activities. It also assists the
Nomination Committee in the work of proposing 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 auditors
At the Annual General Meeting held on 14
December 2013, Ernst & Young was appointed
as the auditing firm for the Company for a peri-
od of one year. The audit is led by Authorised
Public Accountant Erik Åström. 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 Board
The combined remuneration paid to Board
members elected by the Board was fixed by
the Annual General Meeting 2014 at TSEK
615 (615), 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 OPERATIONAL MANAGEMENT
The following policies are to serve as guidelines
in the operations of the Company.
The Chief Executive Officer
The Chief Executive Officer, who is also the
Group President, is responsible for the day-today management of the Company in accordance with the Board of Directors’ guidelines
and directives. As support during the financial
year, he has been assisted by a CFO, three
Resort Managers and Group staff functions. The
CEO is responsible for continually providing
information and the necessary documentation
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 Group
During the financial year 2013/14, the Company’s management group comprised six
individuals, the CEO, the CFO, the Marketing
and Sales Manager, the Resort Manager for the
Norwegian destinations, Hemsedal and Trysil,
and two Destination Managers in Sweden; one
for Åre-Vemdalen and one for Sälen.
FINANCIAL REPORTING
External financial reporting
SkiStar applies International Financial Reporting Standards (IFRS) in the preparation of
the Group’s reporting. Quality in the 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. The Board is
responsible for internal control under the terms
of the Swedish Companies Act and the Swedish
Code of Corporate Governance
DESCRIPTION OF INTERNAL CONTROL
Control environment
There is a clear division of roles and responsibilities 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 financial reporting. The Audit Committee prepares
the basis of the Board of Directors’ continuous follow-up of the internal control, which
includes evaluating and discussing substantial
issues concerning accounting 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 assessment
The 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 has 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
Policies
CODE OF CONDUCT
safety policy
IT, Crisis management, etc
Sustainable value creation
Environment, CSR, Energy
86
CORPORAT E GOVER N A N C E R E PORT
OTHER
Operational, strategic and
administrative policies
PersoNnel policies
HR, Health and safety, etc
auditing standards and recommendations that
concern the financial reporting of the Company.
BOARD OF DIRECTORS
Attendance
Control activities
The Company works continuously with eliminating and reducing significant risks which can
affect the internal control over financial 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 follow-up of whether authorisation manuals and authorisation structures
are being adhered to.
Annual review of the handling of payments
received at the Company’s points of sale.
Other regular reconciliations and physical
checks.
Information and communication
In order that the Company’s policies, guidelines
and recommendations can be complied with,
it is required that these be well-documented
and that they be communicated within the
Company. To ensure that communication and
information 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.
Independent
in terms of
the Company
Attendance,
Audit
Committee
Attendance,
Remuneration
Committee
Remuneration
Members elected at the AGM
Erik Paulsson
6/6
2/2
155,000
Mats Paulsson
6/6
2/2
115,000
Mats Qviberg (t o m 2013-12-14)
2/6
Per-Uno Sandberg
6/6
x
3/3
2/2
115,000
Eivor Andersson
6/6
x
3/3
115,000
Pär Nuder
6/6
x
2/3
115,000
Mats Årjes
6/6
Employee representatives
Bengt Larsson
6/6
5/6
DEVIATIONS FROM THE SWEDISH CODE OF CORPORATE GOVERNANCE 2013/14
Code rule Description
Deviation
Explanation
4.4
Size and composition
The majority of the Board Members
It has been deemed that the Board
of the Board
elected at the AGM shall be independent
is able to act independently, in spite
of Directors
in terms of their relationship to the
of the fact that there is no majority
Company and Company management.
of Board members independent
Half of SkiStar’s Board members are
in terms of their relationship to
independent in terms of their
the Company and Company
relationship to the Company and
management.
Company management.
9.2
Criteria for
The Chairman of the Board of Directors
It is deemed that the Remuneration
composition of
is also Chairman of the Remuneration
Committee can act independently
Remuneration
Committee, which implies that the
despite the fact that one member is
Committee
other members must be independent.
considered dependent according to
Only one of the two other members is
the Code.
independent.
Follow-up
The Board of Directors continuously evaluates
the information provided by senior management and the Audit Committee and ensures
that identified deficiencies in the internal controls are remedied. Of particular significance for
follow-up is the work of the Audit Committee
and the reports from the external auditors.
Internal auditing
The Board of Directors has made the assessment that the monitoring and follow-up
described above are presently sufficient to
ensure the efficiency of the internal control,
without the need for any separate internal
auditing function.
ARTICLES OF ASSOCIATION
The Company’s current Articles of association,
adopted at the Annual General Meeting 2011,
were registered in January 2012. The articles
do not include rules on the procedure for
amending the Articles of association.
COMPLIANCE WITH THE SWEDISH
CODE OF CORPORATE GOVERNANCE
The adjacent table shows and explains SkiStar’s
deviations from the Swedish Code of Corporate
Governance.
The auditor's statement regarding this
Corporate Governance report can be found to
the right.
Auditor’s report on the
Corporate Governance Statement
To the annual meeting of the shareholders of SkiStar AB (publ),
corporate identity number 556093-6949
It is the board of directors who is responsible for the corporate governance statement
for the financial year 1 September 2013 – 31 Augusti 2014 on pages 84-87 and that it
has been prepared in accordance with the Annual Accounts Act.
We have read the corporate governance statement and based on that reading and
our knowledge of the company and the group we believe that we have a sufficient basis
for our opinions. This means that our statutory examination of the corporate governance statement is different and substantially less in scope than an audit conducted in
accordance with International Standards on Auditing and generally accepted auditing
standards in Sweden.
In our opinion, the corporate governance statement has been prepared and its
statutory content is consistent with the annual accounts and the consolidated
accounts.
Sälen 6 November 2014
Ernst & Young AB
Erik Åström
Authorized Public Accountant
6 November 2014
The Board of Directors, SkiStar AB (publ)
CO R P O R ATE G OV E R NANCE R EP O RT
87
BOARD OF DIRECTORS
Erik Paulsson
Born 1942
Chairman
Elected 1977
Mats Årjes
Born 1967
CEO
Elected 2003
Eivor Andersson
Born 1961
Elected 2011
Education: Public school
Other assignments: Chairman of
the Board of Directors of Backahill
AB, Fabege AB and Wihlborgs
Fastigheter AB. Board Member of
Catena AB.
Shares: Including family and company 8,306,667 Class B shares.
Dependent in relation to the
Company as well as to larger
shareholders, according to the
Swedish Code for Corporate
Governance and the Stockholm
stock exchange listing agreement.
Education: Master of Business
Administration
Other assignments: Board Member
of New Wave Group AB. Chairman
of Svenska Skidförbundet.
Shares: Including company 320,304
Class B shares.
Company, according to the Swedish
Code for Corporate Governance
and the Stockholm stock exchange
listing agreement. Independent in
relation to larger shareholders.
Education: Marketing diploma,
management training IHM Business
School.
Other assignments: Group President
of TUI Nordic.
Shares: 4,500 Class B shares.
Independence in relation to the
Company as well as to larger shareholders, according to the Swedish
Code for Corporate Governance and
the Stockholm stock exchange listing
agreement.
Born 1964
Employee Representative
88
BOARD OF DIRECTO R S
Mats Paulsson
Born 1944
Elected 1977
Education: Public school
Other assignments: Vice-Chairman
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
6,897,075 Class B shares.
Code for Corporate Governance
and the Stockholm stock exchange
listing agreement.
Education: Master of Engineering
Other assignments: Own investment
activities.
Shares: 1,525,000 B shares..
Independence in relation to the
Code for Corporate Governance and
the Stockholm stock exchange listing agreement.
Per-Uno Sandberg
Born 1962
Elected 2002
Pär Nuder
Born 1963
Elected 2011
Education: Master of Laws
Other assignments: Senior
Counsellor Albright Stonebridge
Group. Chairman of the Board of
Directors of Sundbybergs Stadshus
AB and the Third Swedish National
Pension Fund. Board Member
of Fabege AB, Swedegas AB,
Cleanergy AB and IP Only AB.
Class B shares. Independent in relation to the Company as well as to
larger shareholders, according to
the Swedish Code for Corporate
Governance and the Stockholm
stock exchange listing agreement.
Bengt Larsson
Born 1951
Employee Representative
FINANCIAL INFORMATION
SkiStar endeavours to maintain a high level
of quality regarding the Company’s financial
information. This will facilitate the understanding of SkiStar’s operations and build long-term
confidence 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.
ANALYSTS
The following analysts monitor SkiStar’s progress and development on a regular basis;
Danske Bank – Mikael Holm
mikho@danskebank.se
+46 (0)70 799 95 94
Remium Nordic AB
Johan Broström
johan.brostrom@remium.com
+46 (0)70 428 31 74
Carnegie Investment Bank
Fredrik Villard
fredrik.villard@carnegie.se
+46 (0)8 58 86 87 47
REPORTING PERIODS
Interim reports and the Year-End report during
the 2014/15 financial year will be published as
follows;
Interim report for the first quarter,
1 September – 30 November 2014,
18 December 2014.
Half-year report,
September 2014 – 28 February 2015,
19 March 2015.
Interim report for the third quarter,
1 September 2014 – 31 May 2015,
18 June 2015.
Year-End report,
September 2014 –31 August 2015,
6 October 2015
ANNUAL GENERAL MEETING OF
SHAREHOLDERS
Shareholders are welcome to attend SkiStar’s
Annual General Meeting at 2.00 pm on Saturday
13 December 2014 at Experium in Lindvallen,
Sälen.
Shareholders wishing to participate in the
Annual General Meeting must be registered in
the register of shareholders kept by Euroclear
Sweden AB (formerly VPC) by Monday 8
December 2014 and report their intention
to participate in the Annual General Meeting
latest on Monday, 8 December 2014, at 12 pm.
Shareholders who have registered their shares
with an authorised nominee must, in good time
prior to 8 December, 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,
Aktieägarservice
780 67 Sälen,
On the Company’s corporate site
http://corporate.skistar.com
Telephone: +46 (0)280 880 95
ANNUAL REPORT
With regards to the environment and our 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 info@skistar.com.
F I NANCI AL I NFO R MAT IO N
89
MANAGEMENT
Employed by the Company
since 2002
since 2014
Administration
Administration
Previous positions: Director of
Previous positions: Authorised
Swedish Ski Association, Hotel
Public Accountant, KPMG.
Manager of Mora Hotel. CEO and
Partner in Santaworld AB.
Class B shares
Mats Årjes
Åsa Wirén
Born 1967
Born 1968
CEO
CFO
since 2005
since 2007
Education: Building engineer
Previous positions: Administrative
Administration
Director of Trysilfjellet Alpin AS.
Previous positions: Nordic
Responsible for Purchasing/Project
Marketing Manager, Fritidsresor.
Development at SälenStjärnan AB/
Sales and Marketing Manager,
SkiStar AB. CEO of Tandådalen &
Langley Travel.
Hundfjället AB.
Shares: Including family 54,000
Bo Halvardsson
Class B shares.
Mathias Lindström
Born 1955
Born 1972
Resort Manager,
Marketing and
Norway
Sales Manager
since 2012
since 1989
Education: Marketing Diploma IHM
Administration
Previous positions: Various
Previous positions: CEO, Vasaloppet
management positions within
AB, CEO and Partner, ANR.BBDO
the SkiStar Group. Business Area
advertising agency, Project Manager
Manager Ski School Tandådalen
Reklambyrån Paradiset, Product
& Hundfjället AB.
Manager Pharmacia & Upjohn/
Nicorette, Sweden Territory Manager
Jonas Bauer
Born 1964
Resort Manager,
Sälen
90
M ANAGEMENT
Danone International Brands AB.
Shares: Including family 328 Class
B Shares.
Niclas Sjögren Berg
Born 1969
Resort Manager,
Åre-Vemdalen
ARTICLES OF ASSOCIATION
Adopted at the Annual General Meeting 10 December
2011 (registered in January 2012)
§ 1 BUSINESS NAME
The Company’s business name is SkiStar Aktiebolag,
Corporate Identity Number 556093-6949. The Company is a public limited liability company (publ).
§ 2 REGISTERED OFFICES
The Board of Directors shall have its registered offices
in Sälen, Municipality of Malung, County of Dalarna.
§ 3 LOCATION OF ANNUAL GENERAL
MEETING
The Annual General Meeting shall be held in Sälen, Åre
or Stockholm.
§ 4 OPERATIONS
The operations of the Company, whether undertaken
by the Company itself or by another company, are
comprised of the ownership and operation of recreational 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 CAPITAL
Share 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 maximum 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 number 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 restriction 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 DIRECTORS
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 for a
period of one year.
§ 7 AUDITORS
One 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 Company’s annual accounts and accounting records and the
administration of the Board of Directors and the CEO.
§ 8 NOTICE
Notice 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. 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 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 MEETING
An 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 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.
§ 10 ATTENDANCE AT ANNUAL GENERAL
MEETING
The Board of Directors may decide that an individual
who is not a shareholder in the Company, shall, on
the terms established by the Board, have the right to
attend the Annual General Meeting.
§ 11 FINANCIAL YEAR
The Company’s financial year shall be 1 September–31
August.
§ 12 RECORD DAY PROVISION
The Company’s shares shall be registered in a record
day register according to the Financial Instruments Act
(1998:1479).
AdDresses
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
Photographs: Jonas Kullman, Johanna Sörensdotter, Ola Matsson, Jonas Hasselgren, Per Eriksson, Kalle Hägglund, Nina Hallström. Portraits: Johanna Sörensdotter, Bengt Alm.
Design and project management: SkiStar Mediahuset. Print and repro: Elanders. We are not liable for any printing errors.
This English version of the annual report is a translation of the Swedish original version: Should differences arise between the two texts, the Swedish version will take precedence.
ARTI CL E S O F ASS O CIAT IO N
91
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 info@skistar.com

Annual report 2013/14 - Corporate

Transcription

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