Tatry mountain resorts, a.s. Peer Group Presentation

Tatry mountain resorts, a.s.
Peer Group Presentation
Peer Group Comparative Analysis
October, 2011
1

Contents
I. Profiles of the companies
II. Share Performance
III. Core business
IV. Financials FY 2009/2010
V. Competitive advantages
VI. Summary
2

I. Profile of the companies

I. Profile of the companies
Companies Industry Founded Segments /areas of operation Listing Market cap.
in mil.
EUR*
P/E **
CDA
Recreational
activities
1989, France - ski resorts
- leisure parks
- several subsidiaries in France,
Germany, Netherlands
1995,Paris Stock Exchange
3 other exchanges in
Sweden and in Great Britain
452.16 11.18
SkiStar
Recreational
activities
1975, Sweden -destinations
- property development
-12 subsidiaries in Sweden
1994, Stockholmsborsen, 3
other exchanges in France
and in Great Britain
374.81 19.00
Vail resorts
Recreational
activities
1962, USA -mountain
- lodging
- real estate
- resort ground transportation
company
- golf courses
1997, New York Stock
Exchange, 2 other
exchanges in Germany
1,007.18 43.61
Cedar Fair
Recreational
activities
1987, USA -11 amusement parks
- six outdoor water parks
- one outdoor water park
- five hotels
1987, New York Stock
Exchange, 1 other exchange
in USA
777.60 N/A
4
* as of October 3, 2011
* *TTM = Trailing Twelve Months
Source: Bloomberg, FT.com, publicly available information about companies

I. Profile of the companies
Companies Industry Founded Segments /areas of operation Listing Market cap.
in mil.
EUR*
P/E **
Televerbier
Casinos &
Gaming
1950,
Switzerland
- 4 skir esorts
-manages 5 hotels and 3 restaurants
-operates 45 chairlifts
1999, Paris Stock Exchange
and 4 other exchanges in
France, Great Britain and
Sweden
98.00 26.48
Nebelhornbahn
Misc.
Transportati
on
1927, Germany - cableways
- restaurants
- other ski services
2003, Munich Stock
Exchange and 3 other
exchanges in France, Great
Britain and Sweden
8.82 21.78
Vealls
Diversified
Operations
Australia
- ski resorts
- forestry
- property development
1970, Australia Stock
Exchange
34.86 N/A
Compagnie Du
Mont Blanc
Hotels &
Motels
2000, France - hotels
- restaurants
- train and cable railways
- 2 local museums
1991, Paris Stock Exchange 65.89 1.64
TMR
Travel
services
2009, Slovakia - 3 ski resorts
- 6 hotels
- real estate projects
- biggest water park in Central
Europe
2009, Bratislava Stock
Exchange
283.98 30.00
5
* as of October 3, 2011
* *TTM = Trailing Twelve Months
Source: Bloomberg, FT.com, publicly available information about companies

II. Share performance

II. Share performance
Companies Share price in EUR* Last dividend paid
in EUR
Dividend yield Div Ex-Date EPS in EUR (FY
2010)
1-year return
(on share)**
CDA 18.11 1.00 5.34% 21/03/2011 1.67 -9.32%
SkiStar 10.05 0.59 5.91% 13/12/2010 0.53 -31.72%
Vail resorts 27.99 0.44 1.59% 29/06/2011 0.64 -1.98%
Cedar Fair 14.00 0.36 2.54% 01/09/2011 -0.91 44.01%
Televerbier 70.00 1.13 1.52% 12/04/2011 2.64 31.53%
Nebelhornbahn 8.70 0.40 4.60% 07/04/2011 0.40 -8.03%
Vealls 3.93 0.10 8.57% 12/04/2011 N/A N/A
Compagnie Du
Mont Blanc
73.00 3.00 4.11% 17/11/2010 N/A 28.76%
TMR 42.15 0.82 1.92% 06/05/2011 1.41 6.25%
7
* as of October 3, 2011
* *TTM = Trailing Twelve Months
Source: Bloomberg, FT.com, publicly available information about companies

III. Core business

Core business (FY 2010)
39%**
5%*
61%
6%
13%
6%
26.3 mil. of visitors per year 4.7 mil. of visitors per year 1.2 mil. of visitors per year ****
72%
1%
13%
67%
Ski resorts (areas)
Hotels
Real Estate
Amusement parks and
others (leisure parks)
7%
7%
19%
74%
6 mil. of visitors per year 22.8 mil. of visitors per year ***
93%
9
* as a secondary activity, the Group sells land to real-estate developers. At present, this activity has not exceeded 5% of total ski area sales and has
been limited to four ski areas of 15 sites. Resulting sales and income are incorporated into the information for ski areas.
** Leisure-park sales dropped 6.5% to 231 mil. EUR, constituting 39% of CDA consolidated sales in comparison with FY 2008/2009, as a result of
sale of amusement parks
*** visitor numbers in the 2009/2010 season were 3.4% above the average of the previous 4 seasons
**** Company´s estimation
Source: Bloomberg, publicly available information about companies

Core business (FY 2010)
9,60%
8% 10,30%
16%
72,10%
Restaurants
Production
Transportation
Others
84%
Cableways
Restaurants
1.1 mil. of visitors per year 373 thous. of visitors per year
Vealls
4,05%
19%
Ski resorts
Others
Cableways
Restaurants
81%
95,95%
nr. of visitors per year : N/A
2.2 mil. of visitors per year
10
Source: Bloomberg, publicly available information about companies

IV. Financials FY 2009/2010

IV. Financials FY 2009/2010*
Companies
Revenues
in mil. EUR
EBITDA
in mil. EUR
EBITDA margin
Net Income
In mil. EUR
Net profit
margin
Total debt / EBITDA
in mil. EUR
ROA
ROE
CDA 597 167.9 28% 47 7% 2.5 3.0% 5.8%
SkiStar 195 66.7 34% 38 17% 3.2 5.2% 12.6%
Vail resorts 604 126.6 21% 21 4% 2.9 1.7% 4.1%
Cedar Fair 680 249.6 37% (22) (8)% 4.6 (2.1)% (44.7)%
Televerbier 38 23.3 61% 25 9% 0.8 2.9% 6.0%
Nebelhornbahn 7 1.8 26% 0.4 6% 2.2 2.9% 7.1%
Vealls 14 5.9 21% 2 14% 0.2 5.4% 5.8%
Compagnie du
Mont Blanc
56 15.3 27% 4 7% 5.2 5.2% 12.5%
TMR 26 6.7 26% 6 23% 4.7 1.9% 2.1%
12
* for specification of individual FY, please refer to slides 8.9,10,11,12
Source: Bloomber.g, publicly available information about companies

in mil. EUR
IV. Comparison of the companies
Financials FY 2009/2010*
800
70%
700
680
61%
60%
600
500
50%
400
300
34%
40%
30%
Revenues
Net Income
EBITDA
EBITDA margin
200
100
20%
0
-100
13
Compagnie des
Alpes
SkiStar Vail resorts Cedar Fair Televerbier Nebelhornbahn Vealls Compagnie du
Mont Blanc
Revenues: The improvement in revenues and adjusted EBITDA** of Cedar Fair results from the record
attendance of 22.8 million guests in 2010, an increase of 7.8% from 2009.
Net income: CDA generated the highest net income of 47 mil. EUR among the companies.
EBITDA margin: Most efficient performance indicates Televerbier and SkiStar. By revenues in amount of 194.7
mil. EUR SkiStar reached 34% EBITDA margin. Televerbier by 38 mil. EUR of revenues generated 61% EBITDA
margin.
* for specification of individual FY, please refer to slides 8.9,10,11,12
** Adjusted EBITDA represents earnings before interest, taxes, depreciation, and certain other non-cash costs. It is not a measurment of operating
performance computed in accoradnce with GAAP. It is a meaningful measure of park-level operating profitability.
Source: Bloomberg, publicly available information about companies
TMR
10%
0%

in mil. EUR
IV. Financials
Compagnie des Alpes*
FY 2009/2010 from October 1 to September 30
Revenues increased to 597 mil. EUR, by 3.4% from
577 mil. EUR
At 365 mil. EUR, ski area sales were down slightly -
0,9% on a like-for-like basis; this decline was mainly
attributable to the fall in real estate sales**, as ski lift
sales were flat on a like-for-like basis
600
500
Consolidated financial results of CDA yearly
comparison
in mil. EUR
577
+3.4%
597
The leisure park business, which was hard hit by the
weather and economic conditions, sales came to 231
mil. EUR down 6.5% on an annual basis
400
300
EBITDA increased to 167.9 mil. EURby 0.8% from
166.6 mil. EUR including external growth, mainly thanks
to the consolidation of Deux Alpes***.
Net income rose to 47.1 mil. EUR by 9.1% in
comparison with 2009 when net income amounted
43.2 mil. EUR
200
100
0
+0.8%
166.6 167.9
43.2 47.1
2009 2010
Revenues Net Income EBITDA
*Source: Annual report 2010 and publicly available information about companies
**as a secondary activity, the Group sells land to real-estate developers. At present, this activity has not exceeded 5% of total ski area sales and has been limited to four ski areas of 15
sites. Resulting sales and income are incorporated into the information for ski areas.
*** In December 2009, CDA took control of the company that operates the ski areas in Les Deux-Alpes – Deux Alpes Loisirs (DAL)
14

IV. Financials
SkiStar*
in mil. EUR
FY 2009/2010 from September1 to August 31
FY 2009/2010 has been the best that SkiStar has ever
experienced in terms of earnings despite periods of
severe cold and fewer guests than expected
250
Consolidated financial results of SkiStar yearly
comparison
in mil. EUR
Net income increased to 35.7 mil. EUR by 18% from
30.7 mil. EUR in 2008/2009
Operating income of Business Area Destinations
was reduced by 3.74 mil. EUR to 36.2 mil. EUR as a
result of internal redistributions to the Business Area
Property Development, reduced depreciation amounting
to 1.87 mil. EUR, severe cold together with less interest
for going on mountain holiday
The operating income of Business Area Property
Development increased during the FY by 3.08 mil.
EUR to 3.85 mil. EUR and was positively influenced by
the net effect of internal rents and depreciation on
transferred housing properties totaling 1.87 mil. EUR
200
150
100
50
0
184.9
30.7
+5%
+0.6%
194.7
66.3 66.7
37.5
2009 2010
Revenue rose to 194.7 mil. EUR by 5% from 184.9 mil.
EUR in comparison with previous year
Revenue Net Income EBITDA
EBITDA slightly increased to 66.7 mil. EUR by 0.6%
from 66.3 mil. EUR
15
*Source: Annual report 2010 and publicly available information about companies

IV. Financials
Vail resorts*
in mil. EUR
FY 2009/2010 from August1 to July 31
Vail resorts delivered solid results despite continued
weakness in the economy and historically low snowfall
levels
Vail resorts delivered growth in all key segments in
Mountain resort segment
Total performance decreased due to:
o
self-funding of two large real estate projects
700
600
500
Consolidated financial results of Vail resorts yearly
comparison
in mil. EUR
679.2
-11.1%
603.8
o
investing in mountain assets,
400
o
o
o
repurchasing stock
completing acquisitions of Mountain News
remaining noncontrolling interest in SSV
300
200
-15.4%
Revenue decreased to 603.8 mil. EUR by 11.1% from
679.2 mil. EUR
Net Income was down to 21.1 mil. EUR by 38% from
34 mil. EUR
100
0
149.6
34 21.1
2009 2010
Revenue Net Income EBITDA
126.6
EBITDA decreased to 126.6 mil. EUR by 15.4% from
149.6 mil. EUR
16
*Source: Annual report 2010 and publicly available information about companies

IV. Financials
Cedar Fair*
in mil. EUR
FY 2010 from January1 to December 31
The improvement in revenues and adjusted EBITDA
** resulted from the record attendance of 22.8 million
guests in 2010, an increase by7.8%, from 2009.
Revenues increased to 679.9 mil. EUR by 6.3% from
636.8 mil. EUR
The Adjusted EBITDA margin increased to 36.7%
from 34.6% in 2009 due to increased attendance which
led to strong operating results during:
o
o
the peak summer months of July and August
the ever-growing fall season
EBITDA increased to 249.6 mil. EUR by 17.8% from
205.2 mil. EUR
Company generated net loss 22.2 mil EUR, included in
the 2010 results are non-cash charges of 43 mil. EUR for
the impairment/retirement of fixed assets and 24.2 mil.
EUR for the early extinguishment of debt.
700
600
500
400
300
200
100
0
-100
Consolidated financial results of Cedar Fair yearly
comparison
in mil. EUR
636.8
24.6
+6.3%
205.2
+17.8%
679.9
-22,2
2009 2010
Revenue Net Income EBITDA
249.6
*Source: Annual report 2010 and publicly available information about companies
**Adjusted EBITDA represents earnings before interest, taxes, depreciation, and certain other non-cash costs. It is not a measurment of
operating performance computed in accoradnce with GAAP. It is a meaningful measure of park-level operating profitability.
17

IV. Financials
Televerbier*
in mil. EUR
FY 2010 from November1 to October31
Year on year Televerbier SA had relatively flat revenues
37mil EUR to 38mil. EUR
though the company grew net income 443.16% from 4
mil. EUR to 25 mil. EUR. A reduction in the cost of
goods sold as a percentage of sales from 9.63% to 8.97%
was a component in the net income growth despite flat
revenues.
EBITDA grew by 2.2% to 23.3 mil. EUR.
40
35
30
25
20
15
10
5
Consolidated financial results of Televerbier yearly
comparison
in mil. EUR
37 38
4
+2.6%
25
22.8 23.3
+2.2%
0
2009 2010
Revenues Net Income EBITDA
18
*Source: Annual report 2010 and publicly available information about companies

IV. Financials
Nebelhornbahn*
in mil. EUR
FY 2010 from November1 to October31
Year on year Nebelhornbahn AG grew revenues
12.35% from 6 mil. EUR to 7 mil. EUR
Net income improved 229.27% from 0.1 mil. EUR to
0.4 mil. EUR.
8
7
6
Consolidated financial results of Nebelhornbahn
yearly comparison
in mil. EUR
6
+12.4%
7
EBITDA increased by 2.2% to 1.8 mil. EUR from 1.4 mil.
EUR in comparison with the same period last year
5
4
3
2
1.4
+2.2%
1.8
1
0
0.1
0.4
2009 2010
Revenues Net Income EBITDA
19
*Source: Annual report 2010 and publicly available information about companies

IV. Financials
Vealls*
in mil. EUR
FY 2010 from January1 to December 31
In FY 2010 Vealls reported a slight decrease of
revenues in comparison with the same period last year.
Revenues decreased by 7.1% to 14 mil. EUR.
16
14
Consolidated financial results of Vealls yearly
comparison
in mil. EUR
15
- 7.1%
14
12
Vealls reported net income in amount of 2 mil. EUR.
10
8
6
- 5.1%
6.2 5.9
EBITDA also decreased by 5.1% to 5.9 mil. EUR in
comparison with the same period last year.
4
2
0
3
2009 2010
2
Revenues Net Income EBITDA
20
*Source: Annual report 2010 and publicly available information about companies

IV. Financials
Compagnie Du Mont Blanc*
in mil. EUR
FY 2010 from June1 to May 31
Year on year Compagnie Du Mont Blanc SA grew
revenues 5.6% from 53 mil. EUR to 56 mil. EUR
Net income improved 67.48% from 2 mil. EUR to 4
mil. EUR
EBITDA increased by 5.2% to15.3 mil. EUR
60
50
40
30
Consolidated financial results of Compagnie Du Mont
Blanc yearly comparison
in mil. EUR
53
+5.6%
56
20
10
0
14.5 +5.2%
15.3
2
4
2009 2010
Revenues Net Income EBITDA
21
*Source: Annual report 2010 and publicly available information about companies

IV. Financials
TMR*
in thous. EUR
FY 2009/2010 from November1 to October 31
TMR outperformed significantly previous FY
Operating performance of TMR yearly comparison
in mil. EUR
Operational revenue increased to more than 26 mil.
EUR by 21.7% from 21.4 mil. EUR.
30 000
25 000
21.4
+21.7%
26.0
Rising EBITDA margins show improving efficiency in
all business segments
20 000
15 000
EBITDA growth mainly driven by strong performance
of Mountain & Leisure and Hotels (consolidation of GH
Praha and GH S. Smokovec)
10 000
5 000
3.6
+46.3%
6.7
0
Net income amounts to 5,7 mil. EUR
2008/2009 2009/2010
Revenue
EBITDA
*Source: Annual report 2010 and publicly available information about companies
22

V. Competitive advantages

V. Competitive advantages
Companies Shareholders´benefits* Other competitive advantages
CDA
SkiStar
•Min. investment 3,622 EUR
•Min. 200 shares = 3,6222 EUR / 400 shares = 7,244 EUR: sign up
•Either winter season: 2 respectively 6 daily tickets
•Or summer season: 2 respectively 6 free entries
•Min. investment 2,010 EUR
•Min. 200 shares = 2,010 EUR: e-card
•15% discount for chair lifts, ski rentals, ski school
•Valid for whole family
•Ski area´s altitude guarantees quality snow cover and season that lasts over 20
weeks
•The portion of foreign customers offers high growth potential
•Local vacation destination – favored in times of crisis
•Both business lines are very capital intensive : it takes around 3 EUR of
investment to generate 1 EUR of sales
•Assets have long useful lives and depreciation, usually over 20 years
SkiStar Vacation Club:
•holiday concept, which includes sale of week units
•connection to the world‘s largest organization for the exchange of vacation
housing
•membership involves a variety of benefits during the stay
•the possibility to exchange the vacation week with more than 5,000 resorts
around the world
Vail resorts N/A Epic Mix:
•-a first-of-its-kind online and mobile application launched for the 2010-2011 ski
season which allows utilize technology to digitally capture their ski and ride
experience and share it with friends and family.
•-Nearly 100,000 Vail Resorts guests activated Epic Mix accounts this season
Cedar Fair N/A N/A
24
* as of October 3, 2011
Source: Annual report 2010 and publicly available information about companies

V. Competitive advantages
Companies Shareholders´benefits* Other competitive advantages
Televerbier
Min. investment 28.83 EUR
•50 shares– 10,000 shares and more = 30 points – 800 points
•1 point = 1 CHF
•card with prepaid points, according to amount of points, up 30%
discount by purchasing lift tickets
•points are deducted from the card and are not transferable to the
following season
N/A
Nebelhornbahn N/A N/A
Vealls N/A N/A
Compagnie Du
Mont Blanc
Min. investment 73.00 EUR
•A 50% reduction on our Mont-Blanc Unlimited annual lift pass
•15 shares and more = 1,095 EUR – unlimited access to all
Company installations
•100 shares and more = 7,300 EUR – 2 non-consecutive days
within Company area
•400 shares and more = 29,200 EUR – 5-day Pack in the Company
area
N/A
TMR
•Min. investment 1,053.75 EUR
•25 shares = 1,053.75 EUR - 4-day skipass / 4 cable car tours
•40 shares = 1,686 EUR- 7-day skipass / 7 cable car tours
•80 shares = 3,372 EUR- 2x 7-day skipass / 2x 7 cable car tours
•130 shares = 5,479.5 EUR - season skipass registered on name
•250 shares = 10,537.5 EUR- - 2x season skipass registered on
name
•500 shares = 21,075 EUR - VIP club membership and advantages
•world’s first 8-seat cableway with orange windows called „Grand Jet“ (Jasná)
•TMR is 3. company in Europe (CDA, SkiStar), which operates many ski resorts
under one umbrella
•offers accommodation packages in cooperation with more than 300 partners in
region
•Slovakia Super Skipass (common lift tickets with Park snow)
•shared lift ticket with Štrbské pleso
•longest ski slopes in Slovakia
•largest transportation capacity in Slovakia
25
* as of October 3, 2011
Source: Annual report 2010 and publicly available information about companies

VI. Summary

VI. Summary
The selected companies operating in the sector of Recreational activities report sound financial
performance despite financial crises and strong external influence e.g. weather conditions.
In comparison with companies in its peer group, Vail resorts has the highest market capitalization in
the amount of 1,100 mil. EUR. Although TMR has the lowest market capitalization among the peer
group, in the amount of 284 mil. EUR, the P/E 30 is comparable with Vail resorts P/E 36.24.
While the stock price of SkiStar amounts to 11.54 EUR, which is the lowest share price in the peer
group, the company reached the highest dividend yield 5.16% in comparison with other companies in
the peer group.
Despite continuing economic crisis all companies experienced an increase in the number of visitors.
The best number of visitors was reported by Cedar Fair, company operating mainly in the
Amusement parks segment, with weak influence of weather conditions. According to estimations,
TMR had the lowest visit rate among the peer group. On the other hand, the number of visitors
during 1Q 2010/2011 increased by 44% in comparison with 1Q 2009/2010 and thanks to the latest
acquisition of Tatralandia, TMR expects increase of visit rate within next seasons.
Considering financials of the companies, TMR confirms its growth potential by impressive net profit
margin of 22.3%, the highest among the peer group, and EBITDA margin of 26% which is on the level
of peer group EBITDA margins.
According to yearly comparison of companies´ financial results, all the companies in the peer group
reported increase in revenues and net income, except for Vail resorts (internal funding of 2 real
estate projects and making 2 acquisitions).
27