Winter
experiences
memorable
Annual Report 2007/08
2
operations
summary of the year 4
our history 5
Comments from mats 6
the skistar share 8
shareholders’ benefits 12
the tourism industry 14
opportunities and risks 18
operations 22
Visions, Goals and strateGies for suCCess 24
leadership and employees 26
sales and marketinG 29
Corporate soCial responsibility 32
business area destinations 36
sälen 38
Åre 40
Vemdalen 42
hemsedal 44
trysil 46
business area properties 48
annual report
administration report 54
definitions 56
fiVe year oVerView 57
Consolidated inCome statement 58
Consolidated balanCe sheet 59
ChanGe in equity for the Group 60 Cash flow statement for the Group 61 parent Company inCome statement 62 parent Company balanCe sheet 63 ChanGe in equity for the parent Company 64 Cash flow statement for
the parent Company 65
notes 66
siGnatures 82
audit report 83
Corporate GoVernanCe
Corporate GoVernanCe report 84
board of direCtor’s report
on internal Control 87
board of direCtors 88
finanCial information 89
Group manaGement 90
artiCles of assoCiation 91
3
skistar creates
memorable winter experiences
as the leading operator of
european alpine destinations.
4 summary of the year
Summary of the year
siGnifiCant eVents durinG the finanCial year
Net sales amounted to MSEK 1,483 (1,259), income before tax amounted to MSEK 206 (170) and income after tax amounted to MSEK 193 (176).
Earnings per share amounted to SEK 4.94 (4.50).
Operating profit/loss for the Business Area Destinations increased by MSEK 99 to MSEK 261, corresponding to a 61% increase. The increase in profits is due to good winter conditions as compared to the previous year and an increased turnout of guests.
SkiStar’s market share of SkiPass sales in Scandinavia increased to 43% (41).
Operating profit/loss for the Business Area Property decreased during the financial year to MSEK 41 (68) due to a slight decrease in demand for accommodations in the Swedish alps.
Net financial income/expenses decreased during the financial year to MSEK -96 (-60) due to increased bor- rowings and higher interest rates.
The proportion of visiting guests residing outside of SkiStar’s home markets (Sweden, Norway and Denmark) increased by 30%, and now constitutes 8% of the total num- ber of guests.
siGnifiCant eVents after the end of the finanCial year
Booking volumes for the winter sea- son 2008/09 are up 15% in volume, compared with the corresponding period for the previous year.
Dividends are expected to remain unchanged at SEK 4.50 (4.50) per share.
The Company’s Business Area Property, including accommodations and developmental property, has been converted into a legal entity, Fjällinvest AB, a separate organisation with the aim of achieving increased activity and clarity.
4
5 2007/08 2006/07 +/- +/-, %
net sales, msek 1,483 1,259 224 18%
income before tax, msek 206 170 36 21%
income after tax, msek 193 176 17 10%
Cash flow, msek 352 231 121 53%
earnings per share, sek 4.93 4.50 0.43 10%
dividend, sek 4.50 4.50 - -
market value, 31 august, sek 87 114.25 -27.25 -24%
direct yield, % 5,2 3.9 1.3 33%
p/e ratio 18 25 -7 -28%
equity, msek 1,278 1,257 21 2%
equity ratio, % 36 39 -3 -8%
return on capital employed, % 10 8 2 25%
return on equity, % 15 14 1 7%
Gross profit margin, % 33 30 3 10%
operating margin, % 20 17 3 18%
net margin, % 13 13 - -
average number of employees 1,100 1,082 18 2%
Definitions can be found on page 56 the year in fiGures
1975/78
Brothers Mats and Erik
Paulsson purchase the Lindvallen ski resort in Sälen.
1994
Lindvallen is listed on the Stockholm Stock Exchange O-list.
1997
Tandådalen &
Hundfjället AB is acquired.
1999
Åre - Vemdalen AB is acquired.
2000
Hemsedal, Norway’s second largest ski resort is acquired.2001
The Group adopts the new name SkiStar AB.2005
Trysil, Norway’s largest ski resort is acquired.
Our History
our history 5
6
A year of strong growth. SkiStar increased is market share during 2007/08 by 2%-percentage points in Scandinavia to 43%
6 Comments from mats
Comments from Mats
6
summary of the year
We have completed a great financial year with increased profitability and strong growth. All five of our desti- nations; Sälen, Åre and Vemdalen in Sweden as well as Hemsedal and Trysil in Norway, show increased sales and higher profits as compared to the previous year. Our organic growth has been 15% and our most important source of revenue, SkiPass, has increased by 20% to MSEK 836. Our destinations’ operating profit increased by MSEK 99 to MSEK 261, correspon- ding to a 61% increase. The operating profit reported by our destinations is the result of good ski conditions throug- hout the season at all resorts, and an increase in the number of guests from our home markets Sweden, Norway and Denmark, but is perhaps primarily due to the increase in the number of guests from our foreign markets.
Value-added profits from our property operations have decreased to MSEK 46 (78) as compared to the previous
year, primarily due to a slight decrease in the demand for investments in alpine accommodations. Operating profit from the Business Area Property decreased to MSEK 41 (68). Our property operations are more sensitive to the changes in the business cycle as compared to our alpine operations. Net financial income/expen- ses has decreased by MSEK 36 to MSEK -96 due to increased interest rates and borrowings. Financial income/expenses is charged by a MSEK 7 write down of tenant-owned apartments. Our net sales increased to 1 483 (1,259), income before tax increased by MSEK 36 to MSEK 206 (170) and income after tax to MSEK 193 (176). Earnings per share amounted to SEK 4.94 (4.50).
hiGh attraCtiVeness
During the season, we have once again increased our market share. Our mar- ket share of the sales of SkiPasses in Scandinavia increased by two percentage points to 43 percent. The increase in market share can be attributed to the
Comments from mats 7
popularity of our five destinations in combination with strong market forces and a high volume of sales and visitors through skistar.com. The number of visitors to skistar.com has increased dramatically in the past few years, and during our best weeks the site receives over
450 000 visitors. During the previous winter season, 46% of all accommoda- tions were booked online, an increase of 9 percentage points. We predict this increase in online sales will continue.
The strong interest in our destinations has resulted in the attraction of invest- ment capital. The best example of this is Åre, which, in the past five years, has received approximately SEK 3 billion in investments, used primarily towards improvements in infrastructure, for instance, in the establishment of the hotel Holiday Club and the large expan- sion of commercial premises in down- town Åre. In Trysil, a new Radisson SAS hotel is being built and will be open for the upcoming season. Also, the hotel chain Choice is in the process of buil- ding an additional hotel in Trysil. The popularity of our five destinations in combination with SkiStar’s strong mar- ket position and distribution network bodes well for a continued influx of foreign investors whom will work with us to turn Sälen, Vemdalen, Åre, Trysil and Hemsedal into internationally-re- cognised Alpine destinations. However, new investments are expected to increase at a lower rate over the next few years due to the downturn in the economy.
Growth in new markets
Today we consider Sweden, Norway and Denmark to be our three home markets. During the previous season we experienced a substantial increase in guests from countries not considered to comprise part of our home market.
During the winter, the total number of guests from other nations increased by 30%, with 8% of our guests coming from counties such as Germany, Russia, the Baltic nations, the Netherlands and the United Kingdom. We expect this increase to continue, particularly from Russia and northern Germany. Since spring 2008, our website has also been available in Russian.
new areas of Growth
We are currently expanding our opera- tions in three different areas; insurance, merchandise and the sale of advertising space. Through our own insurance
company Fjällförsäkringar AB we will offer, as of 1 January 2009, insurance to businesses at SkiStar destinations.
Fjällförsäkringar will also be offering insurance products to SkiStar’s guests.
Beginning in the upcoming season, SkiStar will also operate its own sales of merchandise, primarily consisting of clothing carrying the destinations’ trade- marks. These products will also be sold through skistar.com. We will also play a larger role in the sale of media space at our destinations through the acqui- sition of lift construction advertising at SkiStar’s Swedish destinations. Under the trademark Fjällmedia, SkiStar will offer advertising space to businesses and organisations through various media channels. We believe these three areas will further increase SkiStar’s revenues and profitability over the next few years.
satisfied Guests
Satisfied and returning guests constitute the foundation of our operations and we constantly strive to improve our guests’
experience on location at our destina- tions. This is accomplished by investing in product development, among other things, in the form of new lifts, a greater variety of skiing, a larger selection of restaurants, improved service, etc. In order to stay on top of things, we must constantly incorporate feedback from our guests and develop products and services. We have taken an additional step towards improving our guests’
experience by investing in the experience centre, Experium, at Lindvallen in Sälen.
Experium will be open for business in the winter season 2009/10 and will, among other things, include a large adventure water park and playground.
enVironment and Climate
We have been actively engaged for many years in decreasing our impact on the environment and climate. We have successively decreased the emission of carbon dioxide in relation to sales and, last year, we had the lowest reading since the measurements began. Together with a business partner, we have undertaken an investment in a thermal power station in Sälen. We are also joint owners of the wind power com- pany Dalavind and each year we make investments in improved energy saving snow-making systems. We see ourselves as a good environmental choice for holiday travellers from Sweden, Norway and Denmark as compared with more distant holiday alternatives. Today, a
total of 92% of SkiStar’s guests come from these countries.
foCus on Costs
In the coming years we will work hard to keep costs down in all areas of our operations. For many years we have made significant investments, and during times of prosperity it is easy to take on unnecessary costs. We therefore believe that the time is at hand to streamline our operations and thoroughly investi- gate our expenditures.
Continued hiGh demand
Despite the financial crisis, we find there is a high demand for our products and services. By the end of September we had sold accommodation at an amount of MSEK 254, up 18% compared with the corresponding period in the previous year. As of week 38, we had booked a total volume of 267,000 overnights, which is a 15% increase. An overnight is defined as one day in either a cabin or apartment. During the same period last year, 45% of the total volume expected to be booked for the entire winter season was already booked. Sales via skistar.com are continuously increasing and, thus far, 50% (43) of all bookings for accommodations were made over the Internet. While SkiStar’s guests are naturally affected by the downturn in the economy, a weaker currency (SEK) makes it both more expensive for Swedes to travel abroad and less expensive for foreigners to travel to Scandinavia. SkiStar has previously experienced economic recessions with relatively limited negative impact. We are expanding the accommodations at our destinations, primarily as regards high-quality accommodations. In total we are adding approximately 2,000 new commercial beds, which corresponds to a 6% increase. The majority of the new beds will be added to the Radisson SAS hotel in Trysil, the Alpine Lodge in Hemsedal and the Copperhill Mountain Lodge in Åre. We now look forward to hit the slopes and greet our first guests.
Mats Årjes CEO
8
The SkiStar share price has increased since it was listed on the stock exchange in 1994
the skistar share
The SkiStar share
history
The Class B share is listed on the OMX Mid Cap Stockholm. The shares were listed on 8 July 1994 on the Stockholm Stock Exchange OTC list. At the time of listing, the share price, adjusted for the share split, was SEK 9.
share struCture
On 31 August 2008, share capital was SEK 19,594,014, distributed among 39,188,028 shares, of which 1,824,000 are Class A shares carrying 10 votes per share and 37,364,028 Class B shares carrying one vote per share. All shares have equal rights to distribution. In July 2003, a convertible debenture loan amounting to MSEK 25 was issued to personnel. This loan has since been converted in its entirety to 628,736 Class B shares. In September 2007, an Extraordinary General Meeting of Shareholders resolved to raise a new debenture loan amounting to MSEK 30 through the issues of 250,000 debentures and approved the transfer of these debentures to SkiStar personnel.
Through conversion, the Company’s share capital will increase to a maxi- mum of SEK 125,000, corresponding to 250,000 Class B shares. Complete sub- scription and conversion of the deben- ture loan corresponds to a dilution of approximately 0.6% of existing shares and 0.4% of the votes in the Company.
The conversion price amounts to SEK 138 per share and conversion is permit- ted as of 1 September 2008. The new debenture was significantly oversubscribed.
share priCe deVelopment and net sales
The share price decreased by 24% to SEK 87 during the 2007/08 financial year. Stockholmsbörsen’s total index (OMXS) decreased by 29% during the same period. Since the Company was
listed in 1994, the market price has increased from SEK 9 to SEK 87 per share. During the same period, dividends were provided at SEK 26.68 per share, including dividends totalling SEK 4.50 proposed by the Board for the 2007/08 financial year. During the period 1 September – 31 August 2008, a total of 5,792,237 (13,127,317) shares in SkiStar were traded on Stockholms- börsen at a value of MSEK 599 (1,311).
The turnover rate for shares amounted to 16% (34), compared with 144%
for Stockholmsbörsen as a whole. The lowest share price was SEK 78, noted on 14 July 2008 and the highest share price was SEK 119, noted on 14 November 2007. On 31 August 2008, SkiStar’s market value amounted to MSEK 3,409 (4,475).
beta Value
The Beta value of SkiStar’s Class B share was 0.58 on 31 August 2008. The beta value is based on the Company’s share price during the past 24 months and indicates the degree to which the share price has fluctuated compared to the stock exchange index. If a share has the same price fluctuation as the stock exchange index, then the share’s beta value is equal to 1.0 and vice versa. The SkiStar share’s beta value of 0.58 implies that the share is displaying less share price volatility than Stockholmsbörsen, on average.
shareholder struCture
There were 11,055 (9,608) shareholders on 31 August 2008, an increase of 1,447 (15%) in the number of shareholders during the last year. At the end of the financial year, the ten largest sharehol- ders accounted for 64% (66) of the capi- tal and 75% (76) of the votes. Foreign owners accounted for 12% (11) of the capital and institutional owners for 26%
(27) of the capital. Significant changes amongst the largest owners during the financial year included the sale by Lannebo Fonder and Handelsbanken Fonder of a portion of their holdings, while Skialp AS and Spyder Lending Account have increased their holdings by 204,000 Class B shares and 176,000 Class B shares respectively.
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, which allows a generous dividend policy at the same time as investments can be financed by the Company’s own means.
The proposed dividend of SEK 4.50 (4.50) per share corresponds to 91%
(100) of income after tax, implying a yield of 5.2% (3.9) from the market value on 31 August. In total, the proposed dividend amounts to MSEK 176 (176). The date 12 December 2008 is proposed as date for record for payment to the Swedish shareholders.
Payments of dividends will be disbursed by VPC (the Swedish Central Securities Depository & Clearing Organisation) on 17 December 2008.
9 SEK
0 2 4 6 8 10
07/08 06/07
05/06 04/05
03/04
Dividend/share Profit/share
Holdings Numbers of owners % Numbers of shares Capital, % Votes, %
1-100 2,597 23.49 107,577 0.27 0.19
101-200 2,938 26.58 574,958 1.47 1.03
201-1,000 4,012 36.29 2,391,945 6.1 4.30
1,001-5,000 1,210 10.94 2,697,765 6.88 4.85
5,001-10,000 126 1.14 922,010 2.35 1.66
10,001-20,000 63 0.57 916,269 2.34 1.65
20,001-50,000 51 0.46 1,676,669 4.28 3.02
50,001-100,000 23 0.21 1,617,056 4.13 2,91
100,001- 35 0.32 28,283,779 72.18 80.39
Total 11,055 100 39,188,028 100 100
Year and transaction Increase in
number of shares Nominal amount
per share Totalt antal
aktier Change in
share capital, SEK Total share capital, SEK
1992 established 10 500,000 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
1995 split 5:1 3,241,620 2 4,052,025 8,104,050
1997 new share issue 2,337,725 2 6,389,750 4,675,450 12,779,500
1998 new share issue 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 250,000 2 7,089,750 500,000 14,179,500
1999 new share issue 2,450,000 2 9,539,750 4,900,000 19,079,500
2000 new share issue 100,073 2 9,639,823 200,146 19,279,646
2004 split 2:1 9,639,823 1 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
2005 split 2:1 19,528,034 0.5 39,056,068 19,528,034
2006 Conversion 24,010 0.5 39,080,078 12,005 19,540,039
2007 Conversion 87,913 0.5 39,167,991 43,956.50 19,583,995.50
2008 Conversion 20,037 0.5 39,188,028 10,018.50 19,594,014
skistar, Class b share profit and diVidend per share, sek
ownership struCture, 31 auGust 2008
share Capital deVelopment
* Excluding non-recurring effects in the form of tax revenue, profit per share 03/04 amounts to SEK 4.12.
2,000 4,000 6,000 8,000 10,000
1994 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 6
20 40 60 80 100 120 140
Number of shares traded, thousands
(including after subscription) Class B share
SIX General Index
© NASDAQ OMX 1995
the skistar share
10
Owners Class A shares Class B shares Capital, % Votes, %
mats paulsson including company and family 1,824,000 5,599,280 18.94% 42.87%
erik paulsson including company and family 6,721,810 17.15% 12.09%
investment ab Öresund 4,085,400 10.43% 7.35%
lima Jordägande sockenmän 1,840,000 4.70% 3.31%
per-uno sandberg 1,575,000 4.02% 2.83%
orkla asa 1,044,400 2.67% 1.85%
robur fonder 884,693 2.26% 1.59%
hq strategifond 692,489 1.77% 1.25%
northern tr Guernsey-treaty Client 488,450 1.25% 0.88%
nordea bank norge nominee 416,071 1.06% 0.75%
seb private bank s.a., nqi 403,640 1.03% 0.73%
lannebo småbolag 401,000 1.02% 0.72%
Jonas mareniusson including family 220,688 0.56% 0.40%
mats Årjes 220,304 0.56% 0.40%
skandia fond småbolag sverige 208,777 0.53% 0.38%
skialp as 204,068 0.52% 0.37%
Jp morgan Chase bank, w9 189,278 0.48% 0.34%
spyder lending account 176,186 0.45% 0.32%
riksbankens Jubileumsfond 175,000 0.45% 0.32%
others 11,817,494 30.15% 21.25%
Total 1,824,000 37,364,028 100.00% 100.00%
2007/08 2006/07 2005/06 2004/05 2003/04*
average number of shares 39,174,401 39,151,096 39,062,008 38,946,928 38,559,292
number of shares after full conversion 39,438,028 39,188,028 39,188,028 39,188,028 38,975,458
profit, sek 4.94 4.50 6.19 4.72 8.13
profit after full conversion 4.91 4.49 6.17 4.70 8.05
Cash flow, sek 9.00 5.90 8.51 6.30 7.14
equity, sek 32.63 32.11 32.00 29.00 25.50
equity after full conversion 32.41 32.08 32.00 29.00 25.50
market price, sek 87.00 114.25 119.00 75.00 56.00
dividends, sek 4.50 4.50 4.50 3.00 2.50
p/e ratio, times 18 25 19 16 7
share price/cash flow, times 9.7 19.4 14 11.9 7.8
share price/equity, % 267 356 372 259 220
return, % 5.2 3.9 3.8 4 4.5
Categori Numbers of shares Participations, %
swedish private persons 24,434,675 62.35
swedish institutional ownership 10,127,554 25.85
foreign private persons 52,507 0.13
foreign institutional ownership 4,573,292 11.67
Total 39,188,028 100
Class of shares Numbers of shares Numbers of votes Capital, % Votes, %
a 10 votes 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
Comparisons have been adjusted due to the 2.1 split of shares which was executed in December 2005.
* Figures reported according to previous accounting principles.
share struCture, 31 auGust 2008
ownership CateGories, 31 auGust 2008
larGest shareholders as per 31 auGust 2008
data per share
the skistar share 10
11
12
As a shareholder with SkiStar´s shareholder´s card, you can take advantage of a whole series of benefits
example
shareholders benefits
On 1 September 2007, Kristina bought 200 SkiStar shares for SEK 22 850. During the winter school holidays, she and her husband, together with their two children, aged 10 and 12, visited Sälen for a week-long ski holiday. One year later, on 31 August 2008, Kristina had received the following returns on her SkiStar shares.
dividend 4.50 seK/share x 200 shares = + 900 seK
15% discount on
family ski passes 2 7-day adult ski passes at seK 1,525 each plus
7-day children’s ski passes at seK 1,215 each = + 822 seK 15% discount on
family ski hire
2 7-day complete sets of adult ski equipment, medium at seK 865 each plus 2 7-day sets of chil- dren’s ski equipment, medium, at seK 525 each
+ 417 seK
15% discount on
family ski school 4 group ski school courses at seK 790 + 474 seK
total return, seK 2,613 seK
total return, % 11.4%
Shareholder´s Benefits
12
Many of SkiStar’s shareholders are also guests at SkiStar destinations. As guests, shareholders can also gain first-hand experience of the Company’s operations.
Shareholders with at least 200 shares in SkiStar can order a shareholder’s card, which entitles them to a whole series of benefits. The shareholder’s card entitles shareholders and their families (wife/
husband/partner and your children under 18) to discounts at all SkiStar
destinations. These discounts amount to 15% from SkiPasses, ski rentals and ski schools arranged by SkiStar. As of 31 August 2008, a total of 4,884 (4,086) shareholders held cards, representing 43% (43) of the total number of share- holders. If you would like your own shareholder’s card or would like more information about shareholders’ bene- fits, please visit www.skistar.com.
13 shareholders benefits 13
14
SEK billions
20 40 60 80 100 120
2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 Source: NUTEK/SCB
Swedish leisure travellers Foreign visitors
The tourism industry is an industry of the
future, with increasing demand and of growing importance to the national economy
Millions
400 600 800 1,000
2007 2006 2005 2004 2003 2002 2000 1995
Source: UNWTO (United Nations World Travel Organisations)
toUrist Visits GloballY, millions toUrist ConsUmption in sWeden, GoinG priCes, seK billions
oUr indUstrY
Our industry
the Global toUrism indUstrY
Tourism is one of the world’s largest industries with a turnover of approx- imately USD 856 billion during 2007.
According to the World Tourism Organisation (UNWTO), a United Nations body producing statistics concerning global tourism, the tourism sector accounts for 6% of the total export industry of goods and services.
In the service sector, tourism constitutes around 30% of all exports.
According to UNWTO, global tourism has increased by approxima- tely 69% since 1995 in terms of the volume of visits. During 2007 alone, the UNWTO reported a global increase of 6.6% in the volume of visits, to 903 million visits. Europe is the most visited region, receiving more than half of the world’s foreign visits. The most visited country is France, with nearly 80 mil- lion tourists annually. During 2007, the number of foreign visitors to Europe increased by 4.8%. During recent years, the rapid growth in the Middle East and Asia has been primarily responsible
for the global increase in tourism.
These regions increased by 16.4% and 10.4% respectively during 2007. Africa increased by 7.4%. The Americas (North America, Central America, South America and the Caribbean Islands) is the region showing the lowest growth, 4.9% for the previous year. The results from the first four months of 2008 indi- cate a continued increase, and the year is expected to close at +5%, which is completely in line with UNWTO’s long- term forecast. This implies an annual growth in volume of visits of 4.1% up to 2020.
the sWedish toUrism indUstrY
In Sweden, the tourist industry is an important sector, with approximately 2.8% of Sweden’s combined GNP, and according to the Swedish Agency for Economic and Regional Growth (NUTEK), employment corresponding to 160,000 person-years. According to the same authority, the export value of the industry, i.e. consumption by foreign visitors in Sweden, increased during
2007 to SEK 87.6 billion, which is a 12.1% increase compared to 2006. This figure includes both private and business consumption. During 2007, Swedish pri- vate travellers’ consumption in Sweden amounted to SEK 100.2 billion.
the alpine World marKet
People on all five continents engage in alpine skiing. Europe is the largest market and each year approximately 200 million skier days are consumed (one days’ downhill skiing with a ski pass is considered one skier day). North America is the second largest market, with approximately 80 million skier days per year. The largest, individual markets are the US and France, with approximately 57 million skier days per year. The Nordic region, consisting of Sweden, Norway and Finland, accounts for approximately 15 million skier days per year. The growth in the global market has historically been a couple of percentage points per annum.
However, market fluctuations are large. Perhaps the fastest growing ski market today is found in Eastern
oUr indUstrY 15
Europe, both as regards the number of skiers and as regards the development of new ski resorts. Relatively unknown skiing destinations, such as Bulgaria and Poland, appeared in Swedish travel agencies some years ago.
One of the countries in which interest in skiing is currently increasing very rapidly is Russia, where participation in winter sports is increasing by 20%
annually. The Russian resort of Sochi will host the 2014 Winter Olympics, which will probably contribute to increased interest and investments over the next few years.
Ski resorts in all countries are pri- marily visited by domestic skiers. In the US and Canada, foreign skiers account for slightly less than 5% of visits. In countries such as Japan, South Africa, Chile and Argentina, the proportion of foreign guests is very low. The largest percentage of foreign visitors is found in the Alps, where approximately one-third of all downhill skiers come from other countries. The industry-leading compa- nies primarily work locally but, during recent years, there have been some cross-border collaborations and acquisi- tions. In Sweden, SkiStar has completed an acquisition in Norway. In France, the listed group Compagnie des Alpes (CDA) has acquired ski resorts in both Switzerland and Italy. The ownership of ski resorts is very fragmented; many are family-owned and many companies are small. In Austria, ownership is domina- ted entirely by privately-owned, smaller companies. In Italy, the ownership pro- file includes a strong element of credit institutions; in Switzerland and France, there are a few larger limited companies with broad ownership, of which a couple are publicly-owned and listed on the stock exchange. In Japan, ski resorts and lift systems are often included in larger, privately-owned conglomerates, often with associated hotel operations.
In addition to SkiStar, Sweden is also home to the Strömma Group, which has resorts in Hemavan-Tärnaby and Riksgränsen. The North American market does not differ from the other markets and is also heavily fragmented.
However, restructuring has taken place during recent years, with a shift taking place towards fewer, increasingly larger companies. Lying behind this trend is the possibility of achieving economies of scale and the need to create a critical business volume. Economies of scale are found in the coordination of purchasing, operations and maintenance, as well as
within marketing and sales. The critical business volume is built up primarily via the acquisition of competitors. This has to do both with building volume and with creating a cash flow sufficient to balance the often extensive investments in such areas as lifts, slopes and snow systems.
Another driving force behind the industry’s restructuring trend is the com- panies’ desire to work in a greater num- ber of different geographical locations in an effort to decrease dependency on weather conditions in one or a limited number of locations. CDA, for example, has taken further steps by investing in
“warm weather services,” such as gol- fing resorts and amusement and theme parks. Attempts are also being made, to varying degrees, to broaden the product offering to include, for example, ski rentals and ski schools, in order to attract a larger portion of the guests’
total consumption.
season 2007/08 Nordic region
Sales of SkiPasses increased in all Nordic countries during the season, due mostly to the good skiing conditions.
According to SLAO (the Swedish Ski Lift Organisation), sales of SkiPasses in Sweden during 2007/08 increased by 13.6% to MSEK 1,000 during the win- ter 2007/08, as compared with the pre- vious season. The average price increase was 4.0%. The number of skier days increased from 6.2 million to 6.7 mil- lion. In Norway, total sales of SkiPasses increased by a total of 19.0% to MNOK 873. Price increases in Norway were, on average, 4%. The total number of skier days increased from 5.3 million to 6.0 million. In Finland, sales of SkiPasses amounted to EUR 44.2 million (39.4) and the number of skier days increased from 2.4 million to 2.6 million.
North America
The number of skier days in the USA increased by 11% to 61 million (55).
Due to good skiing conditions at all ski resorts in the USA, this season resulted in a significant increase in the number of skier days. Those ski resorts hit hardest by the lack of natural snow last season saw the number of skier days increase by approximately 20% this season. In Canada, the number of skier days was unchanged and amounted to 19 million, largely due to favourable snow condi- tions at certain ski resorts on the west coast. In North America, more than
half of the total number of skier days took place on the weekend, which is in line with previous years. Snowboarders accounted for approximately one-third of visitors to ski resorts, although these numbers vary significantly from location to location. Compared to Europe, the proportion of snowboarders in North America is very high.
The Alps
The number of skiers increased during the previous season. Due to several heavy snowfalls and an extremely favourable climate, the Alps had a great season. For example, France experienced some heavy snowfalls during Easter and wrapped up the season with excellent ski conditions. During the 2007/08 season, the total number of skier days in France increased by 16% to 57 mil- lion. In Austria, the number of skier days increased by 15% to 55 million.
In Switzerland the number of skier days increased by almost 21% to 29 million.
Germany, where the number of guests is measured instead, recovered from last season’s drop and the number of total guests increased by 44% to 4.3 mil- lion. Similar to North America and the Nordic countries, the largest ski resorts in the Alps account for a majority of turnover. The 25 largest ski resorts are estimated to account for more than 60%
of the industry’s total revenue.
Competition
SkiStar competes for people’s disposable income. This means that, in the broader perspective, SkiStar is competing with such industries as infrequently purcha- sed goods and home interiors. Within the travel industry, SkiStar competes primarily with sun and sea holidays and weekend trips to major cities. The range of holidays of this type has increased over the last decade. One explanation for this could be that, in contrast to the alpine skiing industry, the travel industry retains lower start-up costs, which implies an over-establishment and this, accordingly, puts pressure on prices and margins. Within the alpine skiing industry, competitors consist of other alpine ski resorts in Scandinavia and the Alps. However, throughout the years, statistics indicate that the proportion of customers choosing to travel abroad to ski has remained principally unchanged.
In addition, SkiStar has a strong and well-known brand, which is increasingly important due to the increasing back- ground noise of the media. Thanks to its
16
skistar ticket resia
sales, mseK - 4,956 2,991
net sales, mseK 1,483 507 423
income after tax, mseK 193 38 20
operating margin, % 20 10 10
employees 1,100 470 320
Comparison of toUr operators
oUr indUstrY 16
strong financial position and significant level of cash flow, SkiStar retains the pos- sibility of continually investing in everyth- ing from service training for employees to new, modern lifts and snow-making facilities, thereby ensuring that SkiStar’s alpine resorts always maintain their high quality compared with their competitors.
Furthermore, SkiStar’s ski resorts provide good access to densely populated areas due to their close proximity and reasona- bly priced transport solutions in the form of rail, air and bus connections, as well as rental cars.
International comparison of SkiPass prices
The British company Snow24 annually performs global comparisons of SkiPass prices. These comparisons indicate that SkiStar’s SkiPass prices are competitive on the international markets. Generally speaking, in comparison with resorts with similar choices for lift capacity and total number of kilometres of slopes, SkiPass prices in Switzerland, Canada and the USA are considerably higher. In Italy, France and Germany, they are approx- imately the same or somewhat higher.
trends Consolidation
In recent years, the travel industry has undergone a substantial degree of con- solidation. Considering that margins for
many travel companies are small, high turnover is important in order to retain sufficient resources for advertising and marketing. Competition for exposure to potential customers is considerable. The Internet is the only medium showing a rapid increase in regards to both marke- ting and sales.
More activities
One distinct trend for the travel industry is that guests wish to fit in an increased number of activities and a greater variation of experiences during their holidays. At SkiStar’s resorts, this is evident from an increase in the choice of activities, shopping, restaurants and greater investment in such facilities as swimming pools and cinemas.
The family
More and more ski resorts are aiming at families as the target group. This is evident from the advent of broader and shallower slopes, greater access to accommodation situated closer to the slopes, child-minding facilities, ski schools, youth activities during the evenings, cross-country tracks, more comfortable accommodation and the possibility for self-catered accommo- dation. At the same time, ski-tows are being replaced with modern chairlifts that are reliable, comfortable and can handle greater capacity.
A larger number of target groups
Particularly in the USA, the skiing industry is working to expand the target groups in order to reach more Afro- Americans, Hispanics, ethnic minorities, etc.
Snow-making facilities
Investments in snow-making facilities are increasing with the aim of minimi- sing dependency on the weather. With a similar goal in mind, Alpine ski resorts are investing in lifts and slopes at high altitudes, although investments in snow- making facilities are also increasing in the Alps.
Product development
The leading companies within the skiing industry are broadening their operations to include ski schools, ski hire and sales of ski wear and equipment.
Population trends
Factors, such as more leisure time and an increase in disposable income are generally favourable to the tourism industry. In addition, a general interest in keep-fit activities and outdoor acti- vities and recreation is on the increase, which is particularly favourable for the skiing industry.
More and older skiers
In Sweden’s case, skiers in the age group 55+ will probably increase as the first large “ski-generation” that learned to ski during the 1970’s. There are still many individuals in this group who continue to ski and plan to do so for many years to come. Assuming that an equal number of children and youths begin skiing as in previous years, the total ski market will continue to grow in the Nordic countries.
17 0
50 100 150 200 250 300
Levi Ruka
Idre/Grövelsjön/Fjätervålen Trysil
Hemsedal
Vemdalen Åre Sälen
07/08 06/07 05/06 04/05 03/04 02/03 01/02 00/01 99/00 98/99 97/98 96/97 95/96
NOK/SEK is calculated at the exchange rate of 1.05 for the years up to and including 99/00, 1.1 for the years 00/01, 03/04 and 04/05, 1.19 for the years 01/02 and 02/03, 1.18 for 05/06, 1.13 for 06/07 and 1.18 for 07/08. FIM/SEK is calculated at a rate of 1.48 for the years up to and including 99/00 and 1.50 for 00/01. EUR/SEK for 01/02 and 02/03 is translated at a rate of 9.20, 03/04 to 9.10, 04/05 to 9.45, 05/06 to 9.25, 06/07 to 9.21 and 07/08 to 9.40.
MSEK
sKi pass sales for alpine destinations, mseK
Boo k at skist ar .c om LW A
A Y S BE ST DEAL ON LIN E
oUr indUstrY
4,493,000 ski days
on the Nordic region’s most popular slopes
17
18 opportUnities and risKs
Opportunities and Risks
The Alpine skiing industry has high start up costs, limiting competition
operational risKs and opportUnities
Seasonal dependency
The major portion of SkiStar’s reve- nues is generated during the period December–April. SkiStar’s operations are well adapted to seasonal variations, not the least in terms of the work force.
The majority of the winter bookings take place prior to the beginning of the season. With an increased portion of sales paid in advance, the close of the business transaction takes place at an earlier point in time which, in turn, decreases operative risks.
Dependency on weather
The number of guests at SkiStar’s desti- nations is affected to a certain degree by weather and snow conditions. A late winter and weak access to natural snow reduce the demand for skiing. However,
the operational risk is limited due to the fact that slightly more than 78% (78) of the lift capacity of SkiStar’s destinations is provided with snow from snow- making systems.
During recent years, the impact of the greenhouse effect has been vigo- rously debated. Most researchers are in agreement that global warming is taking place; however, it is very difficult to predict the resulting regional and local effects, which means that certain regions may receive unchanged or even declining temperatures. A milder climate may, in the long term, give rise to shorter winter seasons and the earlier arrival of spring. For example, should SkiStar’s destinations begin the season one week later than usual and end one week earlier, the results would only be marginally affected, as the majority of guests visit the destinations between
Christmas week and the middle of April. The Group’s weather risks have also decreased due to the fact that the destinations are geographically situated in a variety of locations enjoying vary- ing weather conditions and climates.
SkiStar’s destinations are developing their snow-making facilities in order to ensure, in both the short and long term, good skiing for guests during the entire winter season.
Business cycle
Fluctuations in disposable income impact private consumption, which in turn, has an impact on the potential to take significant winter holidays.
SkiStar’s previous sales development and earnings trends show that the Company has been able to handle swings in the business cycle quite well. A large portion of SkiStar’s guests are families who, to
19 opportUnities and risKs
a large degree, return year after year and for whom the winter holiday is a high priority. The dependency on the Swedish economic climate is reduced by the fact that there are also operations in Norway, and that an increasing number of the Group’s guests come from a variety of countries.
Competition
Sun and sea holidays and weekend city breaks are considered to be SkiStar’s main competitors, but other industries, such as infrequently bought goods and investments in the home, also compete for customers’ disposable income. Other competitors are comprised of other alpine ski resorts in Scandinavia and the Alps. The alpine ski industry has high start-up costs, which limits competition.
Extensive investments in service-focused staff, management, modern lifts and snow systems, IT, restaurants, etc., allow SkiStar’s destinations to maintain a high level of quality in which guests’
winter experiences and comfort are also improved year after year. SkiStar’s destinations are highly accessible from population centres due to geographical vicinity and value-for-money transport solutions in the form of rail, air and bus connections, as well as rental cars.
SkiStar’s product and service offerings are highly accessible for SkiStar’s guests via its online marketing and selling system, which facilitates the booking process for guests. Other important competitive factors include a strong financial position, well-known and att- ractive brands and a strong cash flow.
Expansion
SkiStar’s strategy for growth primarily includes improved utilisation of the existing destinations and the develop- ment of product and service offerings.
Secondarily, growth is stimulated by the acquisition or leasing of other ski resorts. All of the acquisitions which SkiStar has undertaken have developed well and have contributed significantly to SkiStar’s successful development.
During 1997, Tandådalen & Hundfjället AB was acquired, followed by Åre Vemdalen AB in 1999, Hemsedal Skisenter AS in 2000 and Trysilfjellet Alpin AS in 2005. SkiStar’s developed and well proven concept for operating alpine destinations is a good foundation for continued, successful expansion.
Bed capacity and occupancy rate
The profitability of alpine destinations is dependent on the number of available beds and the occupancy rate. It is
important that SkiStar retains control over a large bed capacity in order to optimise occupancy by acting on chan- ges in demand and by setting the right price for rooms during all parts of the season.
SkiStar actively works to increase the number of beds at its destinations and to increase the percentage of bed capacity provided via SkiStar agency activities.
It is also important that older cabins and apartments are modernised in order to maintain demand. In addition to SkiStar, new investments in cabins and apartments have primarily been undertaken by external stakeholders or partly-owned companies. Skiers´ strong interest in SkiStar’s destinations results in the attraction of investment capital, which leads to a long-term growth in tourist beds and the development of various accommodation alternatives.
Personnel
Salary costs are the Company’s single largest expense item. SkiStar’s continued success is dependent on motivated and engaged personnel. In order to retain key personnel, SkiStar is working with leadership training and an incentive programme in which, among other things, personnel have been offered the opportunity to purchase convertible debentures during both 2003 and 2007 for a total of MSEK 55. On 31 August 2008, SkiStar’s company management owned a total of 611,188 Class B shares in the Company. In order to increase efficiency, awareness and engagement amongst personnel, SkiStar works extensively with leadership issues. The SkiStar Academy provides manager training for enhanced leadership skills.
The personnel’s service level in relation to the guests is an important part of the guests’ total experience.
A decrease in the possibility of recrui- ting qualified seasonal personnel during a strong economic cycle, when unem- ployment is low, therefore constitutes a risk.
Safety issues
SkiStar works actively on safety issues by identifying and rectifying accident risks and also by actively working on work environment issues.
Risk analyses are continually executed at all destinations in order to ensure sufficient insurance cover and to minimise the various types of risk. A thorough crisis plan for SkiStar has also been produced to prepare the Company for possible accidents or unforeseen incidents.
finanCial risKs and possibilities
Currency risks
The fluctuation of local currencies against other currencies impacts on travel habits and can, therefore, affect the number of guests at SkiStar’s alpine destinations. The Group is also impacted by the relationship between the Swedish and Norwegian currencies.
SkiStar does not hedge its foreign opera- tions. For example, the purchase of lifts and grooming machines from abroad affects prices in terms of changes in exchange rates.
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 enabling a high level of internally financed investments.
Should interest rates increase, the cash flow can be used to more quickly amortise loans and, thereby, decrease the financial burden on the Company. At present, external borrowing only takes place in local currencies, SEK and NOK.
The loan portfolio comprises only short term, fixed-interest borrowings.
other risKs and possibilities Electricity costs
SkiStar’s operations consume large amounts of electricity. Consequently, electricity price variations impact on the Group’s total costs and results.
According to the established policy, the major portion of the Group’s electricity consumption is obtained on the basis of fixed or local prices. Approximately 35% of the electricity prices for the 2007/08 season are fixed. Local energy producers supply approximately 40%
of the Group’s electricity consumption at local prices, which are less than market prices on the electricity market Nord Pool. These local prices fluctuate significantly less than market prices and, consequently, the prices for these volumes are not hedged. During the next financial year, it is calculated that approximately 1.5% will be supplied by the new wind powered operations in Dalarna, in which SkiStar is a joint owner. This implies that only approx- imately 36% of the expected electricity consumption for the 2008/09 season will be directly impacted by fluctuations in market prices.
Petrol prices
Many of SkiStar’s guests use private cars to travel to their destinations. This mode
20 opportUnities and risKs 20
21 Change Impact on results
Occupancy +/-10% +/-47 MSEK
SkiPass prices +/-10% +/-84 MSEK
Interest +/-1% -/+17 MSEK
Salary costs +/-10% -/+43 MSEK
Market price on electricity +/-10% -/+ 1 MSEK Exchange rate NOK/SEK +/-10% +/-3 MSEK
SENSITIVITY ANALYSIS
opporTuNITIES ANd rISKS 21
of travel is impacted by petrol prices and taxation on company cars. The close proximity of alpine destinations to population centres and other alternative forms of travel such as rail reduce the negative consequences of increased petrol prices.
Changes in laws and regulations
Changes in laws and regulations concer- ning SkiStar’s operations can, of course, impact the operations and results.
The government has appointed a commission to review the taxation of non-profit organisations and foundations.
Amongst other things, this inquiry shall include a review of the regulations con- cerning the tax exemption which applies to specific taxable properties, currently used in SkiStar’s operations in Sweden.
The inquiry is expected to be completed by June 2009.
CurrENT dISpuTES
The Swedish Administrative Court of Appeal has determined that, in Sweden, SkiStar shall pay employer’s contribu- tions for employees’ SkiPass benefits, despite the fact that the employees require the SkiPasses to conduct their work. SkiStar has appealed this decision to the Swedish Supreme Administrative Court, which did not grant review dis- pensation. As a result, the Swedish Tax Agency requests that those employees who receive SkiPasses for work purposes be liable to benefit taxation at a rate equivalent to the market price. SkiStar is currently engaged in a discussion regar- ding the reasonability of this decision.
The City Court in Stockholm has determined that SkiStar’s wholly-owned subsidiary, Sälens Högfjällshotell AB, is obliged to pay MSEK 7.5, including interest, to CA Aktiebolag. The dispute relates to the refunding of a purchase sum concerning the sale of a company.
The sale occurred in a company prior to the acquisition by Sälens Högfjällshotell
AB. During a merger, the acquired com- pany later became Sälens Högfjällshotell AB. The judgment has been appealed to the Svea Court of Appeal. In the event that Sälens Högfjällshotell AB should finally be obliged to refund the purchase sum, Sälens Högfjällshotell AB has demanded the return of the shares in the sold company. At the point of transfer, the sold company had equity of approx- imately MSEK 5. SkiStar has not made any provision for the potential costs of the ruling. In other respects, SkiStar is not currently involved in any dispute which is deemed to have any significant effect on the company’s results and financial position.
SENSITIVITY ANALYSIS
The sensitivity analysis below describes the manner in which the Group’s results are impacted by changes in a number of the Group’s most important variables.
Assumptions regarding the impact of the occupancy rate on the operating result are based on all accommodation pro- vided via SkiStar and refer only to the impact on the sale of SkiPasses. Changes in other types of revenue are deemed, in the sensitivity analysis, to be neutralised by the increase or decrease of expenses.
In calculating the sensitivity of electricity price changes, consideration has only been given to the portion of electricity consumption which is directly impacted by changes in the market price. All interest rates are variable and a change in the interest rate environment can, therefore, have a direct effect on interest expenses.
ForECASTS
SkiStar has previously decided not to provide an earnings forecast. Instead, the interim reports provide information regarding the status of current bookings.
22
MAJor poINTS durING THE YEAr
Net sales amounted to MSEK 1,483 (1,259), income before tax to MSEK 206 (170) and income after tax to MSEK 193 (176). Profit per share amounted to SEK 4.94 (4.50).
Operating profit for the business area Destinations increased by MSEK 99 to MSEK 261. The increase in profit is due to excellent ski conditions as compared to the previous year and an increased number of guests.
SkiStar’s market share of SkiPass sales in Scandinavia increased to 43% (41).
During the year, operating profit from the business area Property decreased to MSEK 41 (68) due to a decrease in demand for alpine property purchases.
Net financial income/expenses decreased during the financial year to MSEK -96 (-60) due to an increase in interest rates and debt.
The number of guests from markets
Operations are divided into two business areas – destinations and property
opErATIoNS
Operations
outside SkiStar’s home markets (Sweden, Norway and Denmark) increased by 30% and currently constitutes 8% of the total number of guests.
The Company’s business area Property, consisting of structural pro- perties and development land, has been placed into an independent organisation, Fjällinvest AB.
Increased clarity and activity are expected to result from this reorganisation.
LEGAL orGANISATIoN
All operations in Sweden are underta- ken by the Parent Company, SkiStar AB (publ), except for the leasing of Högfjällshotellet property in Sälen, which is affiliated with the subsidiary Sälens Högfjällshotell AB, and for certain smaller operations affiliated with the subsidiary Tandådalens Fjällhotell Service AB. During the financial year, outstanding shares in the previously jointly-owned company Fjällinvest AB
have been acquired. As per the forth- coming financial year, the Company’s property development operations in Fjällinvest AB as well as structural properties and land development are to be transferred to the company. The operations in Norway are conducted by the wholly-owned subsidiary, SkiStar Norge AS. The operations in Trysil are managed by Trysilfjellet Alpin AS and operations in Hemsedal by the com- pany Hemsedal Skisenter AS. Last year Hemsedal Skisenter AS acquired out- standing shares in Hemsedal Bookings AS. All of the subsidiaries within the Group are wholly-owned, with the exception of Hammarbybacken AB, which is 91% owned by SkiStar AB.
opErATIVE orGANISATIoN
SkiStar’s operations are divided into two business areas and five staff areas. The business area Destinations is comprised of five operative areas: Sälen, Åre, Vemdalen, Hemsedal and Trysil. The second business area is Properties. The
SKISTAR AB (PUBL)
SÄLENS HÖGFJÄLLSHOTELL AB
SKISTAR NORGE AS
TRYSILFJELLET ALPIN AS TRYSILFJELLET GOLF AS
HEMSEDAL SKISENTER AS
VESLESTØLEN AS HEMSEDAL FJELLANDSBY AS
HEMSEDAL BOOKING AS HAMMARBYBACKEN AB
FJÄLLINVEST AB
TANDÅDALENS FJÄLLHOTELL
SERVICE AB
91% CEO /
GROUP CEO ECONOMY /
FINANCE / IR / PURCHASES
HR / GUEST SERVICE
PROPERTY
MARKETING/
SALES
IT TECHNICAL DEVELOPMENT
Legal Organisation Operative Organisation
23
Sälen Åre Vemdalen Hemsedal Trysil Fastighet
2007/08 2006/07 2007/08 2006/07 2007/08 2006/07 2007/08 2006/07 2007/08 2006/07 2007/08 2006/07
Net sales 523 436 330 294 145 116 220 192 262 219 3 -
other income 4 8 - 16* - - -2 - - - 46 78
operating income 527 444 330 310 145 116 218 192 262 219 49 78
operating expenses -337 -323 -238 -233 -104 -86 -160 -138 -172 -155 -8 -10
depreciation -72 -65 -38 -34 -17 -12 -31 -30 -52 -43 - -
operating profit 118 56 54 43 24 18 27 24 38 21 41 68
operating margin, % 22 13 16 14 17 16 12 13 15 10 84 87
*SkiStar’s profit share of MSEK 11 from Åre 2007 AB is accounted for in “Other income” 2006/07 for Åre.
opErATING INCoME ANd opErATING proFIT pEr BuSINESS ArEA, MSEK dISTrIBuTIoN oF opErATING INCoME ANd EXpENSES, MSEK
Operating income 2007/08 2006/07 +/- +/-, %
Skipasses 836 699 137 20%
Accommodation 210 190 20 11%
Ski rental 147 125 22 18%
Ski school 47 40 7 18%
Sporting goods outlets 55 46 9 20%
property services 89 80 9 11%
Capital gains 46 79 -33 -42%
other 101 100 1 1%
Total operating income 1,531 1,359 172 13%
Operating expenses
Goods -83 -80 -3 -4%
personnel -447 -422 -25 -6%
other -489 -443 -46 -10%
Total Operating expenses -1,019 -945 -74 -8%
opErATIoNS
operative management group is com- prised of: the CEO, the Accounting and Finance Director, the Technical Director, the Marketing and Sales manager and the six destination managers, one each from Åre, Vemdalen, Hemsedal and Trysil and two from Sälen (Lindvallen/
Högfjället and Tandådalen/Hundfjället).
STAFF FuNCTIoNS
In order to best take advantage of SkiStar’s combined resources and obtain the best possible effect, a number of functions have been gathered under five staff areas. These staff functions are
Economy/ Finance/IR/Purchasing/
CSR/Environment, IT,
Human Resources/Guest Services, Marketing/Sales,
Technical Development.
SkiStar’s work within Human Resources is outlined on pages 26-28, for
Marketing and Sales see pages 29-31, and for Environmental and CSR areas, see pages 32-33.
BuSINESS ArEA propErTY
The Business Area Property has been operational since January 2005. This business area is responsible for, amongst other things, creating profits and freeing up financial resources via the sale of older accommodation and utilising these resources to develop and build new, modern accommodation at SkiStar’s destinations. This business area shall be transferred into an independent organi- sation, Fjällinvest AB. More information regarding Business Area Property is found on pages 48-49.
BuSINESS ArEA dESTINATIoNS
Business Area Destinations is responsible for the management of SkiStar’s alpine
destinations and comprises the strategic product areas Alpine Skiing/Lifts/
SkiPass, Accommodation, Ski Rental and Ski School, which are the founda- tion of SkiStar’s concept. This business area is presented on pages 36-37.
