SkiStar AB

And warm welcome to the Ski Star Q1 23-24 presentation. My name is Stefan Sjöstrand and I will guide you through this presentation today together with my colleague.

Hello, my name is Martin Almgren. I'm CFO here at Ski Star.

So since we had some technical issues last time, we will get help from financial hearings. So can we please take next slide, please? So the agenda of today will be a short introduction and also a recap from the capital market day we had in October for all of you who wasn't there just as a fresh up and reminder. Then we will go through the Q1 and then we will finalize with an outlook and a summary of today's presentation. So next slide please. And next slide please. And we will talk about our position Our position will continue and we will continue as the leading holiday organizer for Scandinavia and our vision is to create memorable mountain experience all year round and last year we ended up the year with a 4.3 billion revenue and We also were very satisfied with 8 out of 10 guest satisfaction 8 out of 10 employee satisfaction and also that our digital journey continue with a lot of ski paths purchased digitally as well as check-in made digitally. Next slide, please. We are really glad about our foundation where we put people and culture in the center together that we would our guests to have a safe and secure experience at our destination. And of course, all this will be happening within the field of sustainability, where we put a lot of efforts, which we will also come back to later on in this presentation. Next slide, please. During the Capital Market Day, we presented that our main area of the strategic framework is around mountain operations, and it is around property development. And we're really glad that we are strengthening our a situation within mountain operations. And even though that it's hard time within property development, we can see that we also have a new and clear strategy about how to take care of all our land and the land bank we are having in our books. Next slide, please. SkiStar is one of the largest players worldwide. We are the fourth player after two Americans, one French company, and really glad to see our position as number four worldwide. Next slide, please. And also this leading up to a market leader position in Scandinavia where we have 42% market share and we are stable and we're also developing all our destinations. Next slide, please. And if you then look into the position in Scandinavia, we can see that we have an unmatchable position within Scandinavia. We have a lot of length of groomed slopes, and I think that is the area where we should look into, because that is also giving the number of skier days. And as you can see, we have the five largest destinations within Scandinavia among skier days. Next slide, please. And we really put effort in to continue to be the leading holiday organizer for Scandinavia. And what we would like to show with this slide is actually not only the number of skier and activity days. It's also the number of beds we are providing to our guests. And the importance of those beds is that they are what we are calling warm beds. And they are utilized from our customers. And that also helps us to continue to sell ski paths. And not only ski pass, also ski school and also rental, etc. Next slide, please. And this picture is showing what we are doing with our land and how we are developing our land. And if you look into the four pictures, you can see that to just guide you through is that the first picture up to the left is where we are now developing a new ski area. So the red circle in the left side of the corner of the picture up to the left is where we are now developing a new ski area. And if you look down to the picture to the left is how it looks like this summer when the lift and the area started to be And then in the picture right up in the corner is how the lift looks like now, and it will open up on Thursday this week. And then you can see some forest on the left side there, and that is where now we will develop housing just next to the slope, and customers will have ski-in and ski-out locations. And within a couple of years from now, it will look like the picture down to the right. And this is how we are developing areas from area where we have not any development. We are putting up a new lift where we put heating and bulbs on the lift, which creates attractiveness. And then we build housing around these slopes, which mean perfect conditions. Next slide, please. For us it's very important to continue our growth journey and we have had a lot of Swedes and also Danes and British guests visiting us the last couple of years. And we can now see that we have tried to drive an internationalization also of the company and that is really paying off this year. We are increasing the number of Danish guests and of course Danish and British guests are more say profitable than the Scandinavian or the Swedish or Norwegian guest as an example. So in an average we can say that the average spend at the Ski Star destination is 17 000 krona compared to a Danish guest who is actually spending 26 000 krona which is of course extremely good for our P&L. And the reason behind that is that a Swedish customer put 2.2 products into the basket versus a Danish customer putting 2.9 products into the basket. Next slide, please. This year at the Capital Market Day, we also presented new financial targets, which meaning organic growth of 6%, an operating margin of 18%, and also a leverage of net debt EBITDA less than 2.5. And we will also provide a 40 to 60 percent dividend to our shareholders. Next slide, please. So if we then look into the Q1 summary, it's actually looking pretty interesting. Next slide, please. Because the winter is here, and the winter has come extremely early at all our ski destinations. And at personal reflection, I went up to Vemdalen at the October break to spend some time with my wife, walking, hiking. But all of a sudden, we had to swift our plans because the snow started to fall in a very high scale. And actually, we managed to open up Vemdalen in early October. And that is something which has been very important for us this winter season so we can see that there is a strong demand for winter holidays in scandinavia we are increasing during the report we presented in q4 we had plus seven percent but now we have increased to plus nine percent uh uh booking uh for the winter holidays we also have extremely good snow conditions, like I said in the beginning. We have actually finalized the snow production. We finalized it on Friday this week. And that means that we stopped producing snow four to six weeks earlier than normal at all destinations. And that is due to a very efficient snow production. And the snow production has been efficient since it has been very cold. And it's been cold for a long period over time. And that means that we actually have got excellent conditions to produce snow, meaning that we haven't needed to produce it on the margin temperatures. That means that we have been able to produce during excellent conditions. So really happy for that. And this also helps us to give us a long season. I'm also really glad that digitalization grows fast. It grows faster than... we have seen over time and we have now 1.8 million members within MySkiStar and that means that we actually owning the customer data and you can see many companies working with consumers today that they are not owning the customer data and we own the customer data as a first party data and that will be even more important going forward so that means that we can be in direct contact with our guests and consumers. We can also see that we increased online visits with 9%. Last but not least we are really glad to see that we have a retail growth of plus 54% during this quarter and of course the early start of the season has helped us to grow within retail So not only selling ski paths, also selling more products than ski paths. Next slide, please. I think these slides just shows our growth within each destination and also how we have wanted to develop our destinations over time. That's why I'm really glad that we have finalized the acquisition of the ski school in Trysil. That means that we previously had a small stake in that company and we actually now have made an acquisition of the whole ski school. Trysil guides are now in our hands and that means that we can operate ski school in all destinations. We have also opened up a new concept store in . And of course, we're also developing cross-country skis at all destinations. And this helps us now to be a full service provider at all destinations. Next slide, please. I think we get questions about this with the booking pattern, and is the booking important or not? And of course, it's Actually, I'm really proud of showing this slide. It shows the second best booking ever. And that means that there is a strong demand in the market for going to SkiStars destinations. And the only peak which is higher than what we have right now was when we had the pandemic and it was not allowed to travel outside the border of Scandinavia. And of course, to show this graph to you is something I'm really proud of. And also, if we take next slide, please, we can see that the booking pattern is higher on every period compared to last year. And that is also then ending up to this 9%. Previous year, we had some challenges in the spring Easter season. And here you can see we have a really good pickup of plus 20% in the end of the season already now. That shows that the customers are really interested to book in advance. So you can see that on Thursday this week we are welcoming a lot of guests to our destinations. And they are at a 9% higher level during the upcoming three weeks compared to last year. Then we will have a very strong mid-season between week two and six, where we increase 8%. And then we have the winter break, which is normally always highly booked. And also there, we are 4% up. And then again, the spring-easter season is up 20%. So really proud to show this slide. Next slide, please. This slide is showing our digital engagement in quarter one. And like I said, we have 9% up in visitation. And the visitation is coming from both the skista.com, where we have a little bit of decrease, but we are increasing dramatically in our app. And that is also what we can see, the consumer behavior is steering more and more into the app. We can also see that we have a very high increase of visits on our skistarshop.com and also our newly created equipstore.com where we also see high interest from our customers. Like I said 1.8 million members in SkiStar member. It's going from 1.6 to 1.8, which is a very strong number in general, and then to have an increase on that. Next slide, please. This is my last slide before I hand over to Martin. This is just to show you all that we have a very strong revenue within our retail business. We have actually doubled the business in five years. now we have a turnover reaching out to 350 million and we have a good split both within the physical stores and online so the good growth and the stable growth on both and we are growing growth on growth here so Martin I say next slide please and hand over to you.