SkiStar AB (publ)

ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speakers today, Stefan Jostrand, CEO, and Sarah Ginnert-Uggelberg, CFO. Please go ahead.

Thank you, Sharon, and nice to have you all here for the SkiStar Q3 presentation. It will be myself, Stefan Sjöstrand, and our CFO, Sara Ginrot-Uggelberg, who will make the presentation today. And the agenda for today is actually that I will take you through a brief introduction with 10 slides, roughly, and then we will take you through the Q3 highlights. and also with some numbers and then after that we will guide you through some outlook and how it looks forward for the upcoming next winter season as well as this summer season. So if I start with a short introduction and there will be some of the slides some of you have seen before but it's more to make a short introduction like I said. First of all, I'm truly happy to have this 50-year love story of SkiStar as a company. We have celebrated this 2025 and we will continue to celebrate in the beginning of next winter season as well. And the true anniversary is October 9th. So it will be really positive to continue this 50-year celebration with a lot of activities together with our guests and customers Our position is that we have a very strong position. We are the leading holiday organization for Scandinavia and What's very important for us is that we would like to create the memorable mountain experience all year round for our customers and we are really try hard for that and You will see later on what we have done this season to really make sure that this happened throughout the whole season Again, we are one of the largest players in the world and it's interesting to see that Sälen, what many think is a small destination, but it's actually the 16th largest destination in the world. And the ski store have three destinations in this top actually of the top 50 list in the world, which is amazing. Then if you look in and zoom into Scandinavia, we are the top leading company. We have five ski destinations, winter destinations in the top five. And we have not updated the numbers for this winter season since we are waiting for the rest of the market. So in Q4, you will see the full updated numbers for how it has looked this winter season. But again, I'm really glad that we will continue to work with our framework and the strategic framework where we will focus on mountain operations and the property development and Sara will also take you through how our development have looked through the both sides of mountain operations and the property development also from the past seven years. If we look into our integrated business model this is one of our really strengths within SkiStar and We are really glad to have close to 40 million visits to skistar.com where the customer come in and they book their holidays and they also book all the activities and this is something unique with our business model that we can continue to work with skistar.com as our distribution channel and our own OTA which is of course very important. We have our financial targets and they consist of 6% growth, 18% margin. We have a net debt EBITDA 2.5 and dividend up to between 40 and 60%. So no changes there. The same with our sustainability targets. We really would like to continue to focus on creating activity and recreation by adding more customers for skier and activity days. We continue hard to work with the climate reduction and also to work with different type of collaborations to continue to both work with the climate reduction and activate more people in our resource. What's very important for us to work with the strategic initiatives to reach our financial targets. They are really the five strong from and to and this development of the all year round operations continues and the same as we strengthening the margin and growth. We continue to increase the number of commercial beds both build new ones and also take in new ones in our booking systems. We continue to work with the sustainable future mountain experience as well normalize investments over time So with these five strategic initiatives, I will start to focus on the Q3 summary. So if we look into the report, some of you have read it this morning. And of course, we can clearly see that our sales and profit declined. And it declined due to the late Easter. And from God Friday, we could have really make... Yeah, it happened with really... poor weather conditions, and it starts to become really, really warm at our ski star destinations, mainly in Sälen and Trysil, later on also in Vemdalen. Åre maintained quite good as well as Hemsedal, but the 3-1 in the beginning had really tough weather conditions. And week 17, normally we have closed in Sälen and Trysil week 17. This year we have decided to have it open due to spring holidays or eastern holidays in the north part of Sweden. And unfortunately, we need to open up for the snow guarantee at the three destinations, Sälen, Trysil and Vemdalen. And what was very interesting was that media made a big thing out of this. And also media were announcing that this cost us a fortune out of money. However, we really like to make underlining that this week 17 was not the main reason or there's no guarantee or that we did not pay out money to our guests for canceling the bookings. What really happened was that due to the weather effect in week 16 and over Eastern, guests didn't decide to come to the Scandinavian mountains. They decided to stay at home. That's the pure reason, actually. And those guests who stayed at our destination, I must say the co-workers or staff we have, they made so much impressive work to make good conditions for our guests. They worked day and night. They closed some slopes and they shuffled the snow to the slopes where we had opened to really make as good experience as possible for our guests. So hat off again to all our employees making this happen actually. Then another highlight in the Q3 was that we have refines. We have made some refinancing with improved commercial terms and limits. We have added 700 million SEC, which is, of course, very strong and in connection to our debt situation. So I will come into that later. But 1.15, we are in a very strong financial situation going forward as well. During the quarter, we have sold a piece of land, Vasaköl, to Skiab. We also have made a long-term lease agreement with Skiab to rent that back. That will be 600 new beds coming up for the season 26-27. Then we also made a very important agreement with the landowner, Utmarkslaget. Utmarkslaget owns all land in Trysil. And previously, Utmarkslaget has been the one that developed the land and we have leased the ski part. But now we have actually made an agreement with them that we will, together with them, develop more property development within Trysil, which is completely new. So we will start up with the area around the gondola in Trysil, which is the AAA land around this gondola leaf. So a very positive agreement with the landowner Utmarkslaget. Then we have made an acquisition of Högfjells Hotellet's operation. We have been the owner of that building since many years back. But now, since May 1st, we take over the operation in Högis and Högfjells Hotellet. We are really glad that Folk & Försvar, the big conference in January, will continue to work with Ski Star also in January. really proud that we have made a collaboration together with seven other ski resorts for work with the sustainability part and we have called it global sustainability alliance and this will support also the development to put some pressure on our suppliers to really work hard on new development within the area of sustainability that could be of within the steel to have fossil free steels. It could be more electrical development and also even more snow efficiency production. So really glad that we could make this collaboration. Also, we have done an even long-term collaboration with SJ and Snälltåget. And that also means that customers can today book for winter season, the whole winter season next year. And that has not been possible before. And that will be very important, of course, but also something which has been a big requirement from our guests. Last but not least, OKQ8 have signed a strong partnership with us, and that means that we will, together with them, support each customer to fuel up with HVO. We will compensate the difference with normal diesel VS HVO to create a more sustainable travel to our destination. So I continue with some highlights of the Q3. Not only Q3, also the winter season, because now we can make a summary of that. And it is the second best result after the pandemic actually. And we make a very strong operational result. And I think pandemic was exceptional. And if we take that year out, we make the best year ever. The main reason for that is that we, of course, we lose some skier days due to this winter, sorry, the weather effect in the quarter three. But we open up with even more international guests. We increase 8% and they now consist of more than one third of our total number of guests. We can also see that we increased the ski school and ski school is important for the future and also all these international guests or most of the international guests actually buy the ski school as well. Retail or our ski shops continue to grow and our own brand equipped growth with 33% but also this retail area is now close to 700 million in second turnover which I think is quite important to look into as even more important part of our revenues going forward. Last but not least our co-workers are making a very strong work and our guests actually really like what they are doing and give them high scores nine out of ten actually like what our co-workers are doing in the job when they meet them every day. Just a summary of the winter season. I said it briefly. We lose in the end of the season. Easter didn't match up to the year before when the Easter was week 14 and 15. Now we only got some numbers in week 16 but it was unfortunately two low numbers. And what's really interesting is, again, the importance of the international guests. They drive average spend and they continue to do that. And that's why I'm also glad to later on talk about the new incoming flights to Salen Airport. The digital engagement continues and what we could see during this quarter was that we have even more digital engagement and that was a result actually of many customers actually looked at the weather because we show the weather forecast updating every day and also the number of lifts and slopes which was open. And unfortunately, that also led to less conversion. And now we also have made some updates in our MySkista members due to this GDPR. We decreased the numbers, but now we are starting to build it up again. And that's why we increased with 15%. And also, we are now up to 1.5 million members again then. And then we have a retail growth of the retail growth is continue, like I said, and we are growth and growth. And these business have really challenging times within. The area of sports, you have seen many challenges within the industry. For example, XXL have went into or close to bankruptcy and they have now had really tough times and lost a lot of money. But we can continue to show both growth and profitability within this segment, which is, of course, important going forward. So by that I hand over to you Sara who will talk a little bit about our numbers more in specific.

Thank you and if we take a look at the graph that shows the net sales development in comparison with last year and then you can see we've got a growth of 1.3 when you look at last 12 months number and obviously we had a very strong second quarter with a positive calendar effect. And the third quarter has been negatively impacted by late Easter and together with poor weather conditions. And that is obvious when you take a look at the revenue growth. The number of ski days was down 1.6, but still it amounts to 6 million, which is a fairly high number. The occupancy rate in accommodation was low It was 46%, which is down 3%. But if we take a look at the next winter season, the calendar effect will be very positive next year. And that is Christmas and also during Easter. And that will have a positive impact on the net sales. And we continue, as Stefan mentioned, to be an attractive choice for our international guests. that have increased by 8% and their average spending is high. And we have a lot of exciting investments for our guests that will be effective from next winter season. And the Nest Cell development per category. Obviously, and this is in comparison with last year, so the total period of September to May. And yes, we have an increase in ski passes that has a growth 3%, 3.2%, which is volume, but it's more price. And as I said, number of ski days is down 1.6%. Accommodation, the revenue growth is actually flat. Price is 4% and the number of objects is down 4%. We have, as Stefan mentioned as well, the retail segment has improved and increased, and that is both ski rental together with sports shops that add up to a positive impact on the sales development. When it comes to lodging, which is the sum of hotels and mediated accommodations, We've also seen that we have added capacity in restaurants, and that has also been a positive impact on net sales. Exportation is down, actually, because last year we had a lot of property transactions in Hemsedal, and that impacted net sales positively, but it actually had a negative impact on net gain last year. And others, which is up seven, it is actually events that has improved in comparison with last year. If we have a look at the operating profit per segment, then you can see that the development, and once again, this is the development from September to May, and operating of mountain ski resorts and operating hotels. the development is more or less flat. So the development or the upside comes from property development that was affected by a capital loss last year. And this year we've had a capital gain of 50. We have also had a positive impact from joint venture that has improved year on year. net sales and operating profit per business unit. It's more or less the same story but it's up 7% and it's a property development as I mentioned. It is also a ski path of course. It's lodging where restaurant drives as a new capacity drives the improvement. Support functions, which is down 18 million as the case, that is related to sales activities, but also IT. The seasonality impact, and this is more to describe that the seasonality impact is fairly high, and we do make money the second and the third quarter. we lose money in the first and the fourth quarter the seasonality impact is high within our operations. If we continue with operating profit development year on year then last 12 months graph shows that we should have in total 816 but that includes fairly high capital gain of 126 and that is related to last year. The capital gain remaining of this year will not be, that will be limited and the margin is 17.1 which is a fairly high number and underlying business, the operating business is 690 and And as Stefan mentioned, it is a fairly high number. It is the best result ever if we exclude the peak year, that was the year after the pandemic. So we have actually been able to double up our operating profit during the years.

If we take a look at the cash flow situation,

The cash flow from operating activities amounts to 1.2 in comparison with last year that is down to some extent and that is due to a repayment that was made last year. So if we compare the periods that is related to working capital that had a positive impact last year but still the operating activities amounts to a fairly high number. the net investment is 295, which is lower than last year, and that is due to lower investments, but that is more a timing effect. So we will most probably have more investment in the first quarter. So during this year, the investment rate will be more or less 550 as we've said before. Cash flow from financing activities amounts to 963 and that is a higher amount in comparison with last year but that is due to that we've made a repayment of our existing debt to actually prepare for the refinancing that has been made in the recent days.

To take a look at the debt structure and the EBITDA.

So the leverage is 1.1 which is a low number and it has decreased in comparison with 31st of August last year. And the financial net debt amounts to 1.3, which is a decrease from last year. And together with an improved EBITDA, the leverage has improved. And the refinancing agreement was actually signed just the other day. And it's a new agreement with DNB, Handelsbanken and Nordea. And the agreement has resulted in improved commercial terms together with an increased credit of 700 million SEKs.

And also all loans and facilities are linked to sustainability performance.

So the quarter, in summary, yes, we had this quarter a temporary setback due to late Easter and poor weather conditions. and that impacted operating profit for the quarter that was down 10%. But we have a very strong balance sheet position and the equity asset ratio is high. It's 64% when excluding IFRS 16. And as I said, we have a low financial debt and we have a fairly solid investment ratio which is good so all in all it looks good for the future so that the financial position and the financial performance is solid.

Thank you Sara and it is like we all both of us are saying we have a temporary setback in the quarter and again we cannot control the weather but we and we have limited possibilities to control the costs when you are in the peak of the middle of the season as well. So that's why the main reason. However, if we look into our sustainability activities, I think really proud to, like I mentioned, this leading the industry's transition and the way we have now collaborating within these seven ski different ski resorts. I think it is amazing to be part of that collaboration. And since we have created this alliance, there is many more actually ski resorts who would like to join this collaboration. So it has been really good. I mentioned and I mentioned also SJ. And now I will move forward and I will talk about the outlook. What we think is really important is that we continue to work with these strategic initiatives to reach our financial targets. I really hope that you will see again that this temporary setback we had in the quarter, it's very challenging to mitigate. We have done our best. However, again the winter season will be very strong and if we look in now what what is looking ahead of us then and I think so I was into to talking about the calendar effect We have both the Christmas holidays where we also will gain week two next year As a full week of holidays and of course that will be very good for us. You could see that how this winter season was for us this year. And it will be even better the winter 25, 26. Then when we will have Easter week 14 and 15 next year, it will also be the best weeks of having Easter as well. So the calendar next year, super good. Then, I mean, this Scandinavian Mountain Airport is growing. Scandinavian Mountain Airport now, We'll next year have 47,000 passengers coming into that airport and that means that that airport will be number seven in Sweden taking foreign guests. So within five years this airport has grown from zero up to this position which I think is very strong. By now bringing more guests from the UK with ECF. They are coming in from both Gatwick and Heathrow and they will also come from Manchester. The collaboration with TUI has been very strong. We had two Netherlands, we have been working with them and then this year they invited actually on Not from our side, it was TUI themselves who invited Germany and Belgium to come and visit us. And then immediately they signed up for flights coming from Düsseldorf and also Brussels. So of course, this will be super positive for us having these guests in our system. And then what are we doing for our guests? Yeah, we will invest a lot. And when you do work with what we are working with, You have a lot of permission to take care of and sometimes you have to wait and all of a sudden everything happens at the same time. And that's why I'm really happy that for this upcoming winter season we will have the new gondola in Trysil. It will be a fantastic new investment and it has been something our guests have been longing for in Trysil. In Åre we have this area called Björnandsaden where we have had some challenges when the weather conditions can be windy etc. Now we will invest in a new ski lift as well as lightning that means that the whole area could open up earlier closer later and also really make sure that the whole Åre area is actually coming together as one, which is super important for the people having the houses in that area. And we believe that that could also help us to get more bookings in Åre, Björnen and Sarden during the period of time when it's dark outside. Vemdalen, we invest in a completely new ski area. And for those of you who have been visiting Vemdalen in the peak period, it has been very challenging. Excuse me. but now when we open up the whole new ski area of the seed it will be completely actually amazing to have this new area and then we will widening the slopes in Salen relating to more of the modern skiing actually which is of course super good then we get a lot of critics about our pricing from media especially and now we will show that we will introduce the lowest price in the ski mountains actually. So especially in Klövsjö we will introduce this ski pass for 3.99 SEK per day or 19.95 SEK per week and that area will be as big as or even bigger than many areas within the Scandinavia mountains actually which is something super interesting to follow and see how that will develop. We continue to do construction projects. Like I've said, Vasa Sjöland, they're ready the beds, 500 new beds. Capital gains will be a bit delayed this year and it will start up to come more into next year. We said it already during both Q1 and Q2 and now it will be very sure that we will actually have challenges this year but it's very open up for next year when we can see some really strong numbers. We have done an acquisition of Juls sport in Trysild and that will come into our books from September 1st and that will also mean that we will take a larger grip within the area of retail in Trysild and then last but not least the winter bookings are now 30 percent of next year season books and that is up one percent and i think oh it's one percent higher low i think we should look into that from a longer perspective last year we have up nine percent and year before that we have five so i think it is year on year and year so this is the highest bookings we ever have had actually for the next winter season during this time of the year so we are very glad for that of course But before we talk more of the winter, we really would like to also take a look at the summer season we have just in front of us. We are up 2% and we can see it's not the largest numbers, but we also see that the change into year-round business continues and really glad to see that we have a plus number here. What we have worked really hard with this year is actually to do work more with offerings since we made large investments between fiscal year 21-22 up to this year where we invested close to 200 million SEK in summer activities. Now we have them in place. Now we work more with packages, marketing to really get our customers to come up. And many of the visitors doesn't book only in our cabins and hotels they also book their or you take usage of their own cabins and utilize our packages we offer. I think very interesting for next summer season is that we will have a kickoff July 2nd in Hammarby Stockholm Hammarbybakken for a new soccer tournament and This is going to be super cool. We're going to have two soccer pitches at the top of Hammarbybacken when we kick off this big soccer cup and it will come to Sälen next summer. And what we really think is interesting here is that all soccer cup, I can tell it from myself as a father of a son who played a lot of soccer and we went through both Sweden and Norway to play. play soccer cups, and it was always challenging to stay over since there was a limited number of beds. What we can offer within SkiStar is a lot of beds during the summer period, and that's what these companies have found out and why they really signed the agreement with us to start up with a big soccer tournament in Sälen for next summer, which is, of course, something we're looking forward to. Back to the winter, like I said, it looks really good when I look to the graphs. Again, week two is a week which will be very strong for us. So we're going to have 52, 1 and 2 as the three main weeks around Christmas where we have a lot of red days, which will be positive. And then, of course, we have Easter, which will come week 14, 15, which also will be very good for us next winter. And again, we developed the destinations with all this news. I've told you about them, so I will not repeat myself. But what I could repeat is a little bit more. What we are doing is that we continue with this anniversary competition we have had with Skista 50 years, and we have had close to 100,000 guests trying to make this slope. We also see that this snow park is extremely... positive and rewarding for the young generation especially and also when we lightening up and invest in lightning and do that in a professional way we could also see that we can open up the product for even more guests to come and also take usage of the ski passes they have paid for. So really positive development for next year. And lastly, but not least, I really would like to talk about these ski passes. So in Sälen, Högfjället you could do it for 2,95 per day and in Klövsjö Storhogna for 3,95 per day. Extremely positive and we will go out and talk a lot about this in media now and to really gain more and new families developing and coming to the Scandinavian mountains where we're providing a fantastic guest experience. So last but not least, we can see that this mountain holidays in Scandinavia, it's continued to be an obvious choice for many, especially during these challenging times we have in the world where we can see a lot of things happen. People really would like to stay home and spend the time Scandinavia where we could provide a lot of safety and a good environment. So by that we would like to close our presentation or stop the presentation and open up for questions. Thank you so much.

Thank you. To ask a question you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question please press star 1 and 1 again. We will now go to the first question. One moment, please. And your first question comes from the line of Alice Beer from ABG Sundal Collier. Please go ahead.

Hi, and good morning, you could say. Just a question about this 30% of accommodation booked. How much was booked last year? What could you say is like a normal booking rate at this point of the year? And also following up on that, the 600 new beds from Vasakalen, are they accounted for when we talk about 30%?

So first of all, thank you, Alice, for that question. So the 30% is according to our plan. It is 1% higher than last year. And last year we had a record of plus nine. So that's why I really like to highlight that the 1%, And 30% booking is a little bit more than 30 actually. It's on a very, it's on a high level. And on a historical high level. So that's why we believe it's very positive. And I could also see we have a typo. The Vasa shell and beds will not be ready for next year or this upcoming winter season. It is the winter season 26, 27. So I apologize for that mistake. However, we're going to get some new beds coming into our booking system with Högfjells Hotellet, which we will not have had in our booking system for next year. So, sorry for that typo, actually. So, correct is the winter 26-27 Vasakölen. However, Högfjells Hotellet's beds are coming into our system instead.

All right. Thank you for that. And then a question on the Q4 in the summer. We've had a pretty cold June so far. Does cold summer weather affect your summer sales or earnings?

No, actually, we had a very good start, actually, of the opening. It was quite bad. We opened up the 6th of June, and then we had also a lot of, actually, visitors coming out to midsummer. And the first weekend, it was really good. We were surprised, actually. We had so many visitors and quite good revenues, even if it's on a very low level. So quite good. limited when the weather is less good actually. People have learned that the clothing are more important than the weather actually.

That's good to hear. And just a question on the margin target of 18%. How are you feeling about that for the full year? Could it be achievable or would it have to be a fantastic year for that?

Do you mean this year, 24-25, or do you mean 25-26? No, this year. No, but we will have challenges, of course, to meet up. We normally don't give forecasts, as you know, but since we are closing the winter season, we will most probably not reach up to the 18%, of course, since we are closing the winter season now.

Just a question on CapEx. As you mentioned, so far this year you've amounted to just under 300 million. Do you have good visibility on CapEx for the projects that are supposed to be completed by Christmas or could it go up or down?

Obviously, it can always be time differences when it comes to investments. We have a fairly good view on the investments this year, up to August, actually, and the amount will be approximately 550. And then starting next year, we will most probably see not a peak, but the investment grade will be more than usually due to the gondola in Trussel and Hovdesyd. Not very much, but the first quarter we most probably have more investments in comparison with last year's. But this year, 550 approximately. So we have a fairly good view.

Okay, great. Thank you. And just one final question. This Juul sports shop acquisition, could you talk a bit more about that? And is making more retail acquisitions part of your plan to grow your retail leg?

I think what we have done previously is that we have worked with acquisition vertically to really strengthening our position within the area of different businesses to get to strengthening us. And during the years we have made some small acquisitions. We did an acquisition in Trysil also three years ago within this segment. Since we had challenges to come into that segment, since there were very limited number of locations in Trysil. And now we will actually, since we are taking over Jules, we will actually have a fairly good control of the sport shops in Trysil. And in the same way we have done in Klövsjö, we did the same type of acquisition last year, even if it was a small one. And so when there is opportunities coming up, we will see if we can take them, if we are not seeing the opportunities that we can continue to grow our own market share, more or less. But we did the same acquisition in Trysil also last year with the Trysil Guide, and now when we took the full control of the ski school as well. So again, vertical integration has been and will be continuously important for us to have at our destinations to continue to grow our revenue streams in more areas than only the ski lift operation more or less.

All right. Thank you. That was it for me.

Thank you. at the Högfjällshotell at operation is also a similar also vertical you can say where we will take over the hotel but also restaurants there so that's also another way of showing the vertical integration for us and how we will continue to grow the business both organic and with some minor acquisition vertically. All right thank you.

Thank you. Your next question comes from the line of Frederick Lithell from Handelsbanken. Please go ahead.

Thank you. Thank you for taking my questions. Hello to you both. I hope you are well. I just wanted to start off, follow up on Alice's question on the volumes for the next season, 25-26. You will have, you have already now the Hercules Hotelet into the numbers. In percentage points, how much do that add to your volumes of beds? And on top of that, is there anything other that is coming in? That's the first one.

Thank you. The number of beds in Högfjällshotellet, I think we need to come back to exactly how many beds it will be, actually, to be honest, Fredrik. That was bad of me not fully prepared for that, but No, but it is a hotel. And what I think is very good with that hotel is that when you have the tourists coming in with TV, we need to make block bookings, et cetera, for that. And the tourists from the UK mainly also love to stay at the hotel. So that's why we could really take advantage of Högfjellshotellet. And let us come back to the number of beds in Högfjällshotellet. And maybe also in totality.

Yes, we will come back to that. And it's not just hotel room. It's also mediated accommodations. It's a combination of both which will add extra capacity. But we will get back to the total number.

Yes. That's perfect. Thank you. So I continue with my questions. If we could go back to, it's always good to understand a little bit better the Q3 with warm weather and late Eastern. What is what here? Did you, early on, I mean, you talked about the fact that Eastern were positioned late in Q3 this year. So that was no surprise. But did you, in order to fill up your volumes, your capacity, did you move around with your pricing more actively in order to fill it up? So you early on saw this, or was it sort of when we stood there in the East and you saw that the usual volumes you do not control, i.e. private owners of houses or late decisions on going up skiing didn't show up and buy ski passes. So what is what in these weeks? Interesting.

I think it's a very good question, Fredrik. And during the Q2 report, we showed that we have exactly like you said, weaker bookings week 13, 14 and 15. And week 16 looked fairly okay at that time of the bookings. But when we came closer and closer, like week 13, 14, and 15, we could see that the bookings didn't take off. We really tried to reduce the prices for people to come up, but we didn't manage to fill up. But then also all these private owners didn't come up neither, especially the Swedish mountains, actually. Myself were up walking and hiking on the top of the mountain in Sälen which I normally not can do. I normally go cross-country skiing on the top of the mountain. I did that on the Easter day there. and it was impossible to go skiing on the cross country and that of course means that a lot of private house house owners didn't come up since they looked at the weather conditions so they just decided to stay home and that came as a really surprise for us of course that the weather became so warm it went very fast actually so in the beginning of the week it was fairly good but then during Good Friday, it really started to become warm actually. And when kärle, I don't know the word in English, but when the cold in the ground, the minus degrees in the ground start to open up and start to melt, it goes extremely fast. And that was what happened actually. And a lot of customers unfortunately did see. So again, that meant that we lost revenues in... in the hotel segment people didn't come up and the lodging and we also lost ski pass tremendously so and that also led to we didn't sell any products of these cold products which you need like gloves or underwear etc in our sport shop so all segments lost actually during the third quarter, in the end of the third quarter versus the year before. Okay, thank you. What I also could say to everyone here is that to mitigate the staff cost is of course extremely hard when you have, we are taking the staff costs down in week 13, 14, 15. and planning up and gearing up for a big eastern and then you have giving the schedules for staff and then you can of course not take that out so that led to higher cost due to both scheduled for lifts but also that our staff worked day and night to move and shuffle snow and make sure that the slopes were safe So we had full amount of staff working 24-7 actually to create as good condition as possible for all those guests who are up visiting us. So I think that's also important from a cost perspective that it was very challenging to mitigate.

I have two questions on this topic when things turn more warm than you expected. What have your capacity in terms of water supply, how has that improved during the year? So how much more water capacity do you feel you have in order to produce snow to safeguard a late season sort of? Has that changed?

No, but I think we have enough of water to provide our operation. So we don't feel any problems with that at all, to be honest. But what we have this year was that week 16, which is one of the latest weeks in the season, had a combination of Easter this year. And that, of course, is a really bad combination. That way you normally have a peak for Easter. And then on top of that, the warm weather, it was impossible to mitigate.

It is. It is. Yeah, sure. Sure, I understand that. Time is on me. I'm practicing for the next season. You're talking about the cheap... Cheap passes. So, What have you sort of done in general on pricing? Is there anything we should keep in mind in price adjustments? What I think is important is that We, as many other providers in this industry, work with dynamic pricing. So if you book a holiday trip or a hotel today or in three months from now, I give you my advice to those who come to us today. If you haven't moved, that there is a potential level of increasing prices. And we have decided to take part in the beginning of the season like we are doing now. So if you go out looking at our prices right now, they are plus or minus zero roughly. And then... We will have a price increase during the year, like dynamic pricing, and let's see how that ends. we are becoming more and more professional in this like also the whole exchange and the air companies etc and I think this is one of our great advantages in the And two, um, low price to give us is to really take this feedback from guests and also media who are always telling that we are the most expensive which is not to be honest that when you do price surveys and that's why I also want to show the market that we have this key this key that And that means that we need to do surprise lab. ... ... ... ... ... probably most have the most expensive as well so from it's important to to work with the dynamic and all and also with the professional professional crisis and also ... ... ... ... ... ... ... ... ... ... ... I think that we give many key resources in Scandinavia. some competition now when we provide that for 99.95% every week. And that will be throughout the whole season. So, that could also be in the end of the season. And also, the loss of So that's also one of our decisions. Thank you very much. Thank you. one and one on your telephone. We will now take the next question. comes from the line of Yes, to continue on the answer to Frederick here, looking at the dynamic price, and when you look at the price increase you managed to achieve on the three parts during this year, could you... Do you have any idea how much dynamic pricing added to that for what you managed to realize in these consultations? So, could you... But now pricing has actually, it has been, it's quite a huge part of the pricing creation system. I haven't got the number, but it has been We try to communicate to our customers, book and pay as soon as possible. it will be high prices as it goes to come to the mining period. And there's lots of our customers who are actually buying ... ... ... ... the revenue continues to be high. That makes total sense. If you just could... 8% for those 15 international guests, then I guess it's a falling total number of guests. ... ... ... ... And then maybe what to do about, say, the domestic kind of representation. Yes. Uh, this can be a dangerous guess if I include James down in that. we increased with 80% that means that they now consist of roughly 30 plus percent and that starts to become a a good number and we see also now in the booking of this season the main part actually I don't know if you remember, but last year, when we had the a lot of The 99% we have up last year came from Denmark, where we had had a campaign in Denmark, and That is to say, this year, we increased more with the international guests this year. In the book, we do with the message. And now, we have not actually worked too hard with any marketing activities for next week's season in Sweden, especially yet. But we really increased actually our marketing activities this year to really speed up. And we would like to take back to it. And we would like to do what we can. And we would like to do what we can. to secure that the Swedish come back and we will do a lot for Swedish families mainly which is the largest target group. So marketing activities will start, and we will also talk much more about what is free in our destination. we will give children free meals if you stay at our hotels and we continue with free equipment to reach the focus on the Swedish families with children. They are the largest So we are putting in more marketing money for this upcoming winter. And we will also be putting in more experts with international guests since the Now flies coming more to Canadian mountains airports. And it sounds as if it's in very much with the pricing strategy just to leverage it. given that we have had such a weak consumer confidence I guess particularly among the Swedish is that the way you see it as a question of maybe believing I'm going to get the Swedish family back again that might have been missed during this season. Maybe not only lowering the price, but maybe giving more benefits. So, really, Pokémon was free. Actually. So, uh... Sometimes you don't need to lower the price. You maybe need to give benefits instead. It is our... of the company we could manage actually to do that and there's not too many maybe of competition who can do what we have to do We also want to make sure that the cleaning is on a high level. We have our different captains and hodlers, so we will also provide cleaning doors that There was a man that was cleaning from our side in all weather, as well as we did. It was in all the cabins, as well as we did these. What is the plan for the area around the gondola and how you can explore it? I think there is three important areas around in Trysil. You have first area around Gondola. Then you have an area around the previous camping area and then you have the big parking area There is today a parking, but since we opened up the gondola, the large parking and the new entrance will actually be moved down to where the gondola is today. And that means that the parking be possible to make an explanation on. And since we now have made this agreement with MaxLog, that will also of course new opportunities also increased which not has been possible in the past so I think we are strengthening the collaboration both locally with these landowners as we have done at other places in our schools. When you look at timings of potential new beds, that's more a question of 2026, 2027 season than something that's good coming to force already in the coming season. would be 425, 26. No, sorry, 26, 27. When we talk about we will have some facilities like toilet, ski shop and there will be some beds around that area and then we will have I appreciate that and thank you very much and all the best out there. Thank you. Thank you. We will now go to our next question. line of Linus Alenton from Nordea. Please go ahead. Hi. Good morning, Stefan and Sara. Just a couple of quick questions here from me. volume speed days were down roughly 13% if you reverse engineer the numbers you're given I was just wondering if you could elaborate a little bit more on the volume drop here. What contributed mostly to the domestic volumes or international volumes? and also just corporate volumes how they have held up in the What do you mean with core questions? Do you mean conference, et cetera, or what do you mean? Yeah. Okay. Yeah. So if I start with the last question, conference has actually been a little bit So, and also for next week, we can see that conference.