SkiStar AB

2025 and 26, and really happy to be here today with our CFO, Sara Ginlund Uggelberg, and also our retail responsible, Anders Aspgaard, as we will today have a little bit of a deep dive in our retail segment. So we will have a short introduction. We will go through our financials, and we will have an outlook, of course, and a short repetition of where we are in our strategy, and then also talk a bit about the upcoming winter and about the booking situation, which I understand, which is a very important part of this quarter, since the quarter is not so big from a financial perspective. So let's spend some time on that. to bring some clarity for all of us. So a short introduction. For you who haven't been with us, we are the leading holiday operator for Scandinavia and really glad to have a high satisfaction from our guests. 80% of our guests are highly satisfied with our hospitality. We are really glad to have satisfied employees and also our digital improvement the last couple of years has been significant and I will soon take you through that as well. Really glad to see that Sälen has stepped up from place number 15 to place number 13 as on the list of the world's largest ski resort from Ski Days Seoul. Many of us maybe doesn't recognize Sälen as one of the largest, the biggest ski resorts, but that is a fact, and it's really happy to see our improvement, and also to have Åre on the top list, as well as Tryfyll, which has bumped up a couple of steps up on this list. So, we are working on some strategic initiatives to reach our financial targets. You can read about them in our annual report, but they are, of course, our guideline, and we work with them. And to help us every day, we work with our integrated business model. And, of course, the integrated business model build on digitalization and our close to 40 million visits. We have decided to also show you, for the first time maybe, a breakdown of our integrated business model to really show the strength of this business model and how we work with it. And both from a booking situation where the customers book the accommodation, and then the second part is how we work with the guests pre-arrival And then we are all the time in interaction with our guests from a CRM perspective. And then when the guests arrive, we also work with the guests with a point of sales. So this picture illustrates the different revenue streams and the split with the different revenue streams and the importance of work with our different revenue streams and also develop our revenue streams. And that's why I'm really glad to have Anders here today talking about the revenue stream retail later on in this section. We changed our strategic direction five years ago, and it has been a very important change for us since we focus really both on this picture, the top line, as well as this one where we show the EBIT situation and the EBIT has have a significant improvement from an operational perspective which is very important for us to talk about and get less importance out of our sales of land or property development so to say so here we guide the market with the 70 to 100 million per year and last year it was a little bit lower but We are proud to improve our EBIT in the operating part of our business. So, Sara, should we talk a little bit about our financials?

Yes. Thank you, Stefan. And I will start to show you this picture that has been presented before, but it is to point out that we do push our efforts the guest experience, obviously, together with cost optimization and exploitation opportunities. And I do believe that those together will improve our profitability, increase revenue, and improve our operating margin. And the goal is, or the target is set at 18%. And the financial targets, I mean, the quarter itself, the first quarter, we do have limited business. But the revenue growth in last 12 months' perspective has increased from 3.3% to 4.2%. And the operating margin is on par with last year, 17.1%. The debt structure, net debt to EBITDA, is still at a very satisfactory level. We do have a low net debt at 1.6, and the headroom to the target of 2.1 is quite high. And that enables us to further invest in mountain operations. The dividend at the AGM last week it was a decision to pay a dividend on three SEKs per share. And to summarize the quarter, sorry, I would like to inform you that we have made a reclassification when it comes to property exploitation that used to be included in net sales. As from the 1st of September, property exploitation will be recognized as a net amount in the profit and loss statement. That will impact revenue growth and operating margin. And I would like to, because I will get back to the net sales and operating profit later on, but I would like to address that the equity asset ratio is at a very high level. It's 50% when excluding IFRS 16. And the net debt, as I said, is fairly low. And that is, of course, during this quarter due to quite high amount of customer advance payment. And net sales is stable. We do have a stable growth during the quarter corresponding to 12%. primarily driven by retail and ski style all year. And we will get back to the retail part later on in this presentation. Next sales by category. And the revenue growth is related to ski paths and rental income together with the sport shops. even if we have a limited operation during the quarter, retail is an operation that is going on every day and during the hour as well, especially online and at our physical sports shops. And that has led to a net sales development during the quarter of 11%. The operating profit development is, as I said, on par in terms of last 12 months, 17.1%. And so I would say that the underlying operation is very solid during the quarter. And looking ahead, or even during this quarter, but we do have diversified revenue streams. And we have increased our share from international guests. The calendar going forward is very favorable. And we also have not just during Christmas and New Year, but also during for the Easter, which is earlier this year in comparison with last year. And operating profit per segment. So in total, the operating profit has improved by 1%. And the profit has been improved by operating from the operation of, mounting resource together with property development. The impact or the negative impact within hotels is due to the acquisition of Topeja, which is Høgfjells hotellet, the operation from Høgfjells hotellet. We have had a positive impact when it comes to sales, but in total, the operating profit from the acquisition is negative during the quarter, but that will improve quite significant later on. We start from the second and the third quarter. Cash flow and capex. If we start with cash flow situation, we have a fairly high cash flow from operating activities, and that has continued during this quarter and the last 12 months. situation is high, more than 1 billion SEKs in operating cash flow, which is good. The capex has increased, and that has been mentioned before, and that is due to significant investments ahead of the winter season that have been paid during the first quarter. So the capex during the quarter amounted to which is an increase in comparison with the corresponding quarter last year. The net debt structure is satisfactory, and we do have a financial preparedness which has increased quite significantly in comparison with last year. So the financial preparedness amounts to more than $1 billion at the case, And the increase is due to the refinancing that was agreed in June. And the net debt to EBITDA was 1.6 or 1.55 to be exact. And that gives us a huge or quite significant headroom to the target, which is good, of course. And that enabled us to put even further and invest even further in our mountain operation, which is, of course, both important and important for us to be able to do that. So, Stefan, the outlook.

Yes, thank you, Sara, and just sort of an update of where we are with our business plan and how do we continue to focus and what do we continue to focus on to deliver on our target. I will give you some brief update about that. And of course, like I said before, this integrated business model is the core of everything we do and also how we improve in each of the revenue streams and really put focus on each of the revenue streams to deliver according to our strategy. And Sarah mentioned our financial stability and we have fantastic stable financial situation, which also allow us to continue to invest. We will continue to invest in snow, and we will continue to invest in water. And in the bottom of this picture, you see a picture of something called Talvos Damman. And why should we invest in water? Yeah, because water is an important source for us to produce snow. And that's why we will invest in a large water plant. water reservoir and we will continue to invest in our hotels, in our rooms, in our lifts and in our equipped platform etc. So that's why it's important to deliver to our guests. We also see that the decision we took a couple of years ago to go even more with international guests is helping us to drive the average spend and also drive top lines as the international guests, they spend much more than Swedish and Norwegian guests. So the average spend for SkiStar is 20,000 per booking, but the international guests like British, German, Netherlands people, they spend more than 30,000, which means 50% more than guests from Sweden or Norway. We also decide or have made decisions to continue our ESG initiatives. And that's quite important for us since we have signed up for the science-based target and we don't give up anything around the ESG initiatives. I would say that we increase and also speed up as well as focus on our ESG initiatives. So for this quarter, I'm really glad, for example, that we have launched a huge partnership which is a chain which is working with both that you can charge your cars, of course, but you could also fuel up. And if you fuel up with HVO100, we support our guests with one Swedish krona, and supports with one Swedish krona, price for normal diesel and hvo 100 will be the same and that's of course an important part since the impact from our guests on the environment is quite high so that's why one initiatives we take to to reduce that part i'm also very glad that we continue to drive new revenue by focusing on those streams and anders will take you through the retail part which is shown on this one, where a CRIP, of course, stands for the most important or maybe the largest impact on this growth pattern. However, we also have other revenue streams, like we are running now 30 restaurants. So that means also it's a new revenue stream for us, which is both supporting top line, as well as the guest experience, as well as the EBIT. Many of you which have followed us for a while have seen this type of picture and also how we work with property development. Two years ago, we invested in a ski lift. This is an area of Söderåsen in Lindvallen Sälen. And the area in the bottom here close to the ski lift is showing or showing a way of how we would like to develop the area going forward. And we are now in the middle of exactly how that should happen and also in what pace we will develop the area because we see a possibility to do everything in a very short period of time. And that's why also how we have taken deeply discussions right now with our partnership with Skia, for example, of how we will develop this area. We will also develop new lodging and concepts around beds. And this is a picture from Åre. This is a land spot we have just next to the ski lift Vemottan. And we are really happy to now having a detailed plan sent out to the neighbors at this area. Very happy to launch a new ski area in Vemdalen this year, Hogdessyd, which opened up two weeks ago. And we have the possibility to open up the next step next year. But before we do both of these areas, we have said let's see how the customer flow or guest flow will look like in Vemdalen before we do that second part. The right side of this picture shows that we have bought a huge part of land from Holmen, which is now on the detailed plan level together with the municipality. Skistar have an enormous strength. One of our enormous strengths is that we have running the five largest ski resorts in Scandinavia. And how can we take advantage of that? Yeah, we can take a large advantage, both by SkiStar All, that you can buy a ski pass, meaning that you can visit all our resorts. But if you just want to, for example, visit two of them, you could go to Sälen and buy a ski pass. And if you buy a weekly ski pass, we give you the opportunity to visit Trysil in the same ski pass for two days of visit, as an example. The other part is that we also have decided to launch the lowest price ski pass in the ski mountains. So here we could give the opportunity for more people to try to ski in our areas or our ski destinations. So that was a bit of update of how we are focusing on the business plan. deep dive on the winter 25-26, which is then for the upcoming winter, which I think many of you are curious about. So I must say we are really proud that we have a very solid situation, both with bookings as well as snow conditions at all SkiStar destinations. Then something which has a big impact on us is, of course, the calendar effect. So this holidays period which starts from actually Saturday now we have a lot of guests coming in this Saturday the 18th of December sorry the 20th of December and then the early Easter will of course help us very much this year and this calendar effect drives both volume and and profitability. And what we mean with this is that, of course, we have three full weeks as a starting point. That week two gives an extra opportunity, and I will take a deep dive in that further on. But that's a very important week for us to show extra growth. As well as the early Easter will help us to secure good conditions for the guests, but also that we could close down our some of our resorts and areas within the resorts earlier, which means that we could have a better cost control as well, which we haven't last year when we had a very late Easter, where the Easter went to weeks 16 and 17. Then we can see a very changed behavior in the customer, say, customer booking pattern. And that means that we have made some adaptation change. in our marketing. So we are much more aggressive, so to say, in the areas where we see that we need to focus on. So when we do that focus, and also when we produce snow, we can see that we have a much higher digital engagement. So for example, when we put in some pressure or push on marketing. We can see, for example, in quarter one, we have increased our digital engagement with 21%. And we also increased the number of individual users with 6%. So the digital engagement is very important for us, even though we see a small change in the conversion rate from 2.2 to 2 we see that we still have a high conversion rate but this is very much connected to that you are a little bit more hesitant should I book or should I not book but you are out looking you're out searching and that's of course important for us that the customers are doing that and we will this winter have our strongest news launch ever, ever, ever. And it's a very important part, of course, how we will drive this launch for this season. And also, we have a very favorable calendar, as I said, not only Christmas, also early Easter. And what I think is important, which I missed in the first slide, which I will then Talk a little bit more about on this picture where I truly believe that there is a lot of interest in is that we have booked 80% of our beds for the season. 90% of our bookable beds are booked actually up to week 10, meaning that we have a very strong booking situation. That means we are plus 2%. from week 52 up to week 10, which means that probably the most important part of our season, as you can see on the pattern here. And it also shows that the three first weeks will be very important for us, and we are actually very satisfied with the booking situation at these three weeks. We're also very satisfied with the breaks, the February breaks, which also including the week 7, 8, 9, which has a very strong situation. We are also increasing the number of international guests. So we're increasing the international guests with 6%. That means that we are going from last year 39% up to 41%. And the increase is coming from Denmark with plus five, Netherlands 13, Germany 14, and the British one with 12. And of course, this is very important for us. And the Belgium one is a new line with TUI. And we can see that our collaboration with ECF and TUI has been very important for our airport and the Scandinavian mountain airports in . will increase the number of passengers this year from 25,000 to 50,000 passengers. So a very important number then. And I will stop my part of the presentation here and hand over to Anders, who will take the deep dive in Skista retail, and then we will take the Q&As after that. Welcome, Anders.