Annual report 2004/05

Annual report
– Memorable winter experiences –
2004/05
www.skistar.com

History
1975/78 The brothers, Mats and Erik Paulsson, purchase the
Lindvallen ski resort in Sälen
1994 Lindvallen is listed on Stockholmsbörsen O-List
1997 Tandådalen & Hundfjället AB are acquired
1999 Åre-Vemdalen AB is acquired
2000 Hemsedal Skisenter AS is acquired
2001 The Group takes the new name SkiStar AB
2005 Acquisition of Trysil, Norway’s largest ski resort, in progress
Summary of the year
Significant events during the financial year
• SkiStar acquires Trysil, Norway’s largest ski resort.
To date, the Norwegian Competition Authority
has not approved the acquisition.
• Net sales declined to MSEK 977 (990), income
before tax increased to MSEK 182 (177), and the
income after tax decreased to MSEK 172(313).
Net earnings per share amounted to 8:83(16:26).
In the previous year, a large, one-off tax rebate was
reported.
• A proposal has been made to increase the dividend
to SEK 6.00(5.00).
Significant events after the end of the financial year
• Decision to propose a 2:1 split of the share to the
Annual General Meeting of shareholders.
• Decision on repurchase of a maximum of 60,000
B shares as partial payment for the Trysil
acquisition.
• In the beginning of October, booking volumes were
4% higher than at the corresponding time in the
previous year.
TABLE OF CONTENTS
Operations
History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Summary of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Comments from the CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
The SkiStar share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
The market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Opportunities and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
The Group’s operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Vision, goals and strategies for success . . . . . . . . . . . . . . . . 16
Management and employees . . . . . . . . . . . . . . . . . . . . . . . . . 18
SkiStar Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Environmental work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Business Area Destinations . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Sälen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Vemdalen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Åre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Hemsedal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Business Area Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Annual report
Administration report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Appropriation of profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Five-year summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Change in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Notes to the financial statements . . . . . . . . . . . . . . . . . . . . . 46
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Audit report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Corporate Governance
Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Financial information and shareholders . . . . . . . . . . . . . . . . 60
Group management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Articles of Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Addresses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
The year in figures
2004/05 2003/04 +/– +/–, %
Net sales, MSEK 977 990 –13 –1
Income before tax, MSEK 182 177 5 3
Income after tax, MSEK 172 313 –141 –45
Cash flow, MSEK 241 250 –9 –4
Earnings per share, SEK 8:83 16:26 –7:43 –46
Dividend, SEK 6:00 5:00 1:00 20
Market value 31 August, SEK 150:00 112:00 38 34
Return, % 4,0 4,5
Price/earnings ratio, times 17,0 6,9
Equity, MSEK 1 075 985 90 9
Equity ratio, % 53 52 1 2
Return on capital employed, % 12 13 –1 –8
Return on equity, % 17 36 –19 –53
Gross margin, % 32 32 0 0
Operating margin, % 20 21 –1 –5
Net margin, % 18 17 1 6
Average number of employees, 871 875 –4 0
Definitions can be found on page 40..
2 3

New market-oriented organisation
Acquisition of Trysil in progress
employees require good management,
In order to be able to meet future
On 19 May 2005, SkiStar submitted an
which is why we continue to invest in
demands from our guests, a reorganisa-
offer to acquire the companies that
management development. Our
tion took place and was implemented as
operate Norway’s largest ski resort,
managers go through training in mange-
from 1 January 2005. The operations
Trysil. On 23 May this year, the owners
ment and leadership at the SkiStar
have been divided into the business
accepted SkiStar’s offer. The takeover
Academy, our own management school.
areas Destinations and Properties, while
was planned for 1 November, but on 10
In order to find out how well we
at the same time the marketing, sales
October, the Norwegian Competition
succeed, an external market research
and IT staff functions have been mer-
Authority notified its intention to
company annually conducts an ex-
ged into a common area under the name
intervene in the acquisition. In mid-
amnation, the Satisfied Employee Index,
SkiStar Travel. The goal of the Business
November, the Norwegian Competition
among all employees regarding what
Area Destinations, which is comprised
Authority will issue a final decision.
they think of SkiStar as an employer and
of operations at our four alpine
If the decision is negative, SkiStar will
if the employees belive that they get back
destinations: Sälen, Åre, Vemdalen and
appeal to the Norwegian Department
from the compny as much as they give.
Hemsedal, is to offer a memorable
of Modernisation. The Norwegian
The Satisfied Employee Index for the
winter experience for our guests and
Competition Authority believes that a
winter season 2004/05 was 81%, which
to maximise the number of returning
relevant market demarcation is the 20
is an improvement of two percentage
guests. The newly formed Business Area
largest ski resorts in Norway and Sweden
points over the previous season.
Properties co-ordinates our property
development projects and will repair
while SkiStar believes that the relevant
market delineation for weekend visits is
The SkiStar share
and sell older housing units in order
ski resorts within 3-5 hours travel
The overall goal for SkiStar is to
to generate profits and make financial
distance and only within Norway. Only
increase the value of the shareholders’
resources available for the development
a few Norwegians travel to ski resorts
capital. During the 2004/05 financial
SkiStar improved
its result despite a
weak winter season
Mats Årjes
and construction of new, modern
tourist accommodation. SkiStar Travel
will function as the organiser of travel
to SkiStar’s destinations. This unit’s
primary assignment is to market and
sell the services and products offered
by SkiStar to our guests, that is, accommodation,
ski passes, ski rental and ski
school. SkiStar Travel will also
outside Norway over a weekend. Our
opinion concerning weekly tourism is
that Alps should also be included in
the market delineation. More than half
of Danish skiers travel to the Alps. We
hope and believe that the Norwegian
Competition Authority will listen to our
reasoning and that the acquisition can
be completed shortly. Trysil is the perfect
year, the share price increased by 34%
to SEK 150:00 and it is proposed that
dividends be increased by 20% to SEK
6:00. At the same time, we have 1,816
(32%) more shareholders, making the
current number of shareholders almost
8,000. In order to make it possible for
even more to become SkiStar shareholders,
the Board of Directors is
The winter season’s major cause for joy was Åre, which showed positive development
with more guests and a rising profit.
The 2004/05 Financial Year
The Group is showing a better result
that income from ski operations on
properties owned by the company in
and Helsinki were quite successful, and
over 7,000 skiers took advantage of the
guarantee effective and affordable transport
solutions to the destinations. A
positive effect of the co-ordination is
that we have distributed 3.6 million
SkiStar catalogues in Sweden, Norway,
Denmark and Finland this autumn
complement to SkiStar’s existing
destinations.
The guests – our product developers
Satisfied and returning guests are the
basis of our profitability. We
proposing a 2:1 split of the share to the
Annual General Meeting of shareholders,
that is, shareholders would
receive two new shares for one old.
Prior to the 2005/06 season
despite the impact of a number of
Sweden is exempt from income tax.
opportunity to fly at affordable prices.
compared to 0.4 million last autumn.
continuously examine how our guests
The current booking situation at the
negative factors, such as fewer public
After adjustments for these one-off
The development in number of rail
Major investments have been made
feel about their winter holidays. Each
beginning of October showed a 4%
holidays at Christmas and New Year,
effects, net earnings per share in the
passengers to Åre has surpassed
in increased housing capacity in the
week, we measure what the guests think
improvement in volume over the same
weak levels of natural snowfall in Sälen
previous year were SEK 8:08. Increased
expectations - from 9,000 tickets sold
Norwegian and Swedish mountains at
of our various products and services. We
point in time last year. The number of
and Hemsedal preceding the Swedish
activity within the newly started
during winter 2003/04 to over 26,000
the same time that growth in the
also carry out an annual external study
rental units has risen by 2% at our
school holidays in February, and an
Properties Business Area has already
during winter 2004/05. For SkiStar as a
number of new skiers has been limited.
which is compiled into a Customer
destinations since the last season.
early Easter holiday. Net sales during the
resulted in capital gains of MSEK 45(25)
whole, all profitability goals were sur-
In order to create long-term growth,
Satisfaction Index regarding what the
Snow systems have been expanded and
financial year amounted to MSEK 977
from sales of land, tenant-owner’s rights
passed, with the exception of the
it is SkiStar Travel’s responsibility to
guests think of our product and service
strengthened for the winter season in
(990), income before tax rose to MSEK
and apartments, primarily in Sälen. Net
operating margin where the outcome
recruit skiers from other countries such
selection and whether they think that
order to be able to lay snow faster and
182 (177) and the income after tax
financial income has improved due to
was 20% compared to the goal of 22%.
as Denmark, Finland, Great Britain,
they receive value for their money. The
over a larger surface. A totally new
amounted to MSEK 172(313). Net
the fact that all loans have been con-
Return on capital employed amounted
the Netherlands, Russia and the Baltic
Customer Satisfaction Index for the
ski area with new pistes and a high-
earnings per share amounted to SEK
verted to short-term, fixed-interest loans.
to 12%, return on equity increased to
States. Foreign marketing efforts require
2004/05 season was 89% (88).
speed chairlift have been developed in
8:83 (16:26). Profits after tax in the
previous year included a large tax
During the past season, Åre showed a
positive development, with more guests
17% and the equity ratio increased to
53%. Organic growth was negative,
large economic resources and leading
edge competence. This is yet another
Motivated employees
Vemdalen. We look forward with
confidence to the coming winter season.
rebate, as the Swedish Tax Agency reassessed
parts of the Group’s income
and a profit that increased by MSEK 12
to MSEK 32. The efforts made prior
-1%, compared to the goal of growing
annually by at least 3% above inflation.
motivation to co-ordinate the Group’s
total resources within marketing, sales
Motivated employees provide good
service and are a prerequisite for the
Sälen, 30 October 2005
tax returns from 1997 onward. The reassessment
took place based on the fact
to the season with charter flights to
Östersund from Stockholm, Copenhagen
and IT.
company having satisfied guests who
come back to us. In turn, motivated
Mats Årjes
CEO
4 5

The SkiStar share
During the financial year, the price of the SkiStar share increased by 34% to SEK 150. It
is proposed that dividends be increased by 20% to SEK 6 per share.
History
The B share has been listed on the
Stockholmsbörsen O List since 8 July
1994. At the time of listing, the share
price was SEK 18.
Share structure
On 31 August 2005, share capital was SEK
19,528,034 distributed among 19,528,034
shares, of which 912,000 are A shares
carrying 10 votes per share and 18,616,034
are B shares carrying one vote per share.
All shares carry an equal right to dividends.
The nominal value per share is SEK 1. In
July 2003, a convertible debenture loan
amounting to MSEK 25 was issued to
personnel, of which MSEK 13.8 was
subscribed during 2003, MSEK 10.9
during 2004 and MSEK 0.3 during 2005.
Up until 31 August 2005, debentures
equivalent to 248,388 B shares were
submitted for conversion of which a total
of 183,566 B shares during 2003/04 and
64,822 B shares during 2004/05 at an
exchange rate of SEK 79:50. The
convertible loan expires on 1 July 2008
and outstanding debentures can be
converted to an additional 66,077 B shares
during the period, which implies a 0.3%
dilution of existing shares.
Share price development and net sales
The share price increased by 34% to SEK
150 during the 2004/05 financial year.
Affärsvärlden’s general index rose by 27%
during the same period. Since the company
became listed in 1994, the market price
has increased SEK 18 to SEK 150. During
the same period, dividends were submitted
for conversion at a rate of SEK 20:35 per
share. During the period 1 September 2002
– 31 August 2005, a total of 3,784,305
shares (4,585,962) in SkiStar were converted
at Stockholmsbörsen at a value of
MSEK 486 (375). The turnover rate for
shares amounted to 19% (25), compared
to 111% for Stockholmsbörsen as a whole.
The lowest share price was SEK 110:50,
noted on 1 September 2004 and the highest
share price was SEK 161:50 noted on 13
July 2005. On 31 August 2005, SkiStar’s
market capitalisation amounted to MSEK
2,928 (2,180).
Beta value
The beta value of SkiStar’s B share was
0.3 on 31 August 2005. The beta value is
based on the company’s share price during
the past 24 months and indicates
Ownership categories 31 August 2005
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 its beta value is equal to 1.0. If a
share’s price fluctuates more than the
index, then its beta value is more than 1
and vice versa. A beta value of 0.3 for the
SkiStar share implies that the share has not
been affected by the same share price
volatility as Stockholmsbörsen, on average.
Category Number of shares Participations, %
Swedish private persons 11 090 836 57
Swedish institutional ownership 7 128 198 36
Foreign ownership 1 309 000 7
Total 19 528 034 100
Share structure 31 August 2005
Class of shares Number of shares Number of votes Capital, % Votes, %
A 10 votes 912 000 9 120 000 5 33
B 1 vote 18 616 034 18 616 034 95 67
Total 19 528 034 27 736 034 100 100
Number of shares traded
in 1000's (including
aftersubscription)
Shareholder structure
There were 7,454 (5,638) shareholders
on 31 August 2005, an increase of 1,816
(32%) in the number of shareholders
during the last year. At the end of the
financial year, the ten largest shareholders
accounted for 67% (67) of
the capital and 77% (77) of the votes.
Foreign owners accounted for 7% (10)
of the capital and institutional owners
for 36% (34) of capital. Significant
changes among the largest owners
during the financial year were the sale of
Thorvald Sverdrup’s holdings, including
company and family, and SEB Funds’
increase of its holdings of SkiStar shares.
Dividend policy
SkiStar’s dividend policy is to annually
distribute at least 50% of its income
after tax. The proposed dividend of SEK
6:00 (5:00) per share corresponds to
Ownership structure 31 August 2005
68% of income after tax. The proposed
dividend of SEK 6:00 implies a yield of
4.0% (4.5) from the market value on 31
August. The proposed dividend amounts
to a total of MSEK 117 (97). The date of
15 December 2005 is proposed as date
of record for payment to the Swedish
shareholders. Payments of dividends
will be despatched by VPC (Swedish
Central Securities Depository & Clearing
Organisation) on 20 December 2005.
Shareholder benefits
Shareholders owning at least 200 shares
in SkiStar may order a shareholder card
entitling them to discounts at all SkiStar
resorts. A 15% discount is provided on
ski passes, ski rental and ski schools.
SkiStar had 2,873 (2,400) cardholders
as per 31 August 2005, which is
equivalent to 39% (43) of the total
number of shareholders.
Proposed split
The Board of Directors has proposed
a 2:1 split of the SkiStar share to the
Annual General Meeting of shareholders.
The Annual General Meeting
of shareholders will be held on 12
December 2005 at China Teatern in
Stockholm.
Earnings per share
Class sizes Number of owners % Number of shares % Number of votes %
1-100 1 881 25,90 100 358 0,51 100 358 0,36
101-200 1 717 23,64 348 441 1,78 348 441 1,26
201-1000 2 951 40,64 1 501 236 7,69 1 501 236 5,41
1 001-5 000 550 7,57 1 134 645 5,81 1 134 645 4,09
5 001-10 000 66 0,91 497 753 2,55 497 753 1,79
10 001-20 000 36 0,50 531 728 2,72 531 728 1,92
20 001-50 000 25 0,34 801 912 4,11 801 912 2,89
50 001-100 000 12 0,17 816 094 4,18 816 094 2,94
100 001- 24 0,33 13 795 867 70,65 22 003 867 79,34
Total 7 262 100,00 19 528 034 100,00 27 736 034 100,00
Share capital trend
Year
Changes
Increase in
number of
shares
Nominal
amount
SEK/share
Total
number
of shares
Change in
share capital,
SEK
Total share
capital,
SEK
1992 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
6
7

The market
SkiStar’s competitive situation is much broader than only ski resorts. SkiStar competes for
the guests’ time and disposable income in every area, from rarely-purchased-goods to sun
and surf holidays.
Competition
increased. Fresh statistics from the
The industry’s leading companies
The tourism industry competes against
Swedish Tourist Authority show that
mainly work locally, but certain
a number of other branches for the
during the last five years, visits to over
international collaborations and
guests’ time and income. The two
2,000 Swedish tourist destinations in
acquisitions have taken place in recent
possibly largest competitors are in-
the survey have increased from 104
years. In Sweden, SkiStar has made
The right equipment enhances your skiing experience.
frequently purchased commodities such
as computers and flat screen televisions,
million in 1998 to 110 million visits
in 2003. The largest increase can be
acquisitions in Norway. In France, CDA
acquired ski resorts in both Switzerland
Largest shareholders as per 31 August 2005
as well as the building-materials
industry, as many people nowadays
seen in the Activities category, in which
ski resorts are included (see diagram).
and Italy. The ownership of ski resorts
is very fragmented. Many are family-
Owners A shares B shares Capital, % Votes, %
choose to renovate and modernise
Considering the different types of
owned and many companies are small.
Mats Paulsson including company and family 912 000 2 194 046 15,91 40,79
their housing conditions personally.
tourist destinations within the activities
In Austria, ownership is totally
Erik Paulsson including company and family 2 915 330 14,93 10,51
According to Statistics Sweden (SCB),
category, ski resorts and beach resorts
dominated by privately-owned small
Investment AB Öresund 2 280 400 11,68 8,22
the index for trends in net sales in
comprise the largest portions. These two
SEB-Fonder 1 246 050 6,38 4,49
HQ-Fonder 1 043 203 5,34 3,76
Lima Besparingsskog 995 400 5,10 3,59
Per-Uno Sandberg 900 000 4,61 3,24
Robur Fonder 269 800 1,38 0,97
Magnus Sjöholm 140 684 0,72 0,51
Odin Fonder 136 054 0,70 0,49
Handelsbanken Fonder 120 000 0,61 0,43
Astrid Ohlin 120 000 0,61 0,43
Mats Årjes 114 452 0,59 0,41
Other 6 140 615 32,44 22,16
Total 912 000 18 616 034 100,00 100,00
current prices for these industries from
1995 to 2004 has increased by 84% for
the home electronics, radio/television
and other household items category. The
index has also increased by 27% for
wood, construction material and
sanitary items. SCB’s statistics on the
development of household disposable
income show that from 1995 to 2003,
disposable income has increased by
37%.
The Swedish tourist industry
areas are also responsible for a major
portion of the increase.
The global alpine market
People are interested in alpine skiing in
all five continents. The largest market is
in Europe and has an annual
consumption of about 185 million ski
days (a day of alpine skiing with ski
passes is considered a ski day). North
America is the second largest market
with about 75 million ski days per year.
The largest single markets are made up
Changes in the number of
visitors per visiting category
1998-2003
Data per share
Travel to and from Sweden has
increased significantly during the
of the USA, Austria and France, all with
about 57 million ski days per year. The
2004/05 2003/04 2002/03 2001/02 2000/01
Average number of shares 19 473 464 19 279 646 19 279 646 19 279 646 19 279 646
Number of shares after full conversion 19 594 111 19 487 729 19 308 638 19 279 646 19 279 646
Profit, SEK 8:83 16:26 6:32 5:05 2:85
Number of shares after full conversion 8:78 16:09 6:32 5:05 2:85
Cash flow, SEK 12:35 12:96 14:49 12:34 8:74
Equity, SEK 55:22 51:11 38:13 35:39 31:87
Number of shares after full conversion 55:37 51:42 38:19 35:39 31:87
Market price, SEK 150:00 112:00 82:50 51:50 39:50
Dividends, SEK 6:00 5:00 4:00 3:00 1:75
Price/earnings ratio, times 16,99 6,89 13,05 10,20 13,86
Exchange rate/cash flow, times 12,14 8,64 5,69 4,17 4,52
Share price/equity, % 271,64 219,14 216,37 145,52 123,94
Return, % 4,00 4,46 4,85 5,83 4,43
past decade. Statistics from SIKA
(Swedish Institute for Transport and
Communication Analysis) show that
between 1994 and 2004, the number of
passengers in Swedish airports on
scheduled and charter flights has
increased from just over 16.8 million to
just over 23.4 million (approximately
40%). One of the reasons for this is the
growth of the low-cost flight industry,
which has resulted in increased travel at
the end of the week (city breaks) and an
increase in sun and surf holidays.
Travel within Sweden has also
Nordic region, that is, Sweden, Norway
and Finland, have about 10 million ski
days per year. Historically, the market
growth is a couple of percent per year.
The resorts in all countries are mainly
visited by domestic skiers. In the USA
and Canada, the number of foreign
skiers is barely 5%. In countries such
as Japan, South Africa, Chile and
Argentina, the number of foreign
visitors is very low. The highest number
of foreign visitors can be found in the
Alps, where about a third of all downhill
skiers come from other countries.
Source: The Swedish Tourist Authority
Classification of the number of
visitors per sub-category 2003, %
Source: The Swedish Tourist Authority
8
9

companies. In Italy, there is a strong
element of credit institutions in the
product selection in order to secure
larger percentages of guests’ total
forced to stay closed for up to 50 days
during the season. In general, a large
responsible for the major portion of the
turnover. The 25 largest resorts are esti-
Product development
The new, more flexible carving skis have
resorts. These are Vail Resorts and
Intrawest, listed on the New York
ownership structures. In Switzerland
consumption.
number of ski locations were forced into
mated to be responsible for just over
been a major success and have in-
Stock Exchange, and Compagnie des
and France, there are a few larger
companies with diversified ownership
in limited company form, of which a
couple are public and listed. In Japan,
ski resorts and ski-lift systems are
2004/05 season
Scandinavia
According to SLAO (Swedish Ski Lift
Organisation), ski-pass sales in Sweden
unplanned operation suspensions due to
the weather. However, the locations in
New Mexico, Utah and Colorado had a
good season. For many of them, it was
the best ever. Just over half of the total
60% of the total income for the industry.
Trends
Marketing
Increased resources are being invested
fluenced sales positively in recent years.
The leading companies in the industry
are broadening operations to include ski
schools, ski rental and sales of ski
clothing and equipment as well.
Alpes (CDA), listed on the Paris Stock
Exchange. Vail and Intrawest also
conduct extensive operations within real
estate development. Intrawest also owns
a travel agency. Besides entertainment
usually included in larger privately-
decreased during winter 2004/05 by
number of ski days were attributable
in advertising and marketing. The com-
and theme parks, CDA also conducts
owned conglomerates, often with
associated hotel operations. In Sweden,
1.1% to SEK 900 million, excluding
value added tax, compared to the
to the weekends, in line with previous
years. The number of snowboarders was
petition for attention is significant.
There is intense competition for
Population development
Demographic factors such as more
ski operations.
other than SkiStar, there is the Strömma
group, among others, with resorts in
Hemavan-Tärnaby and Riksgränsen.
previous season. The average price
increase was 2.6%, resulting in a
decrease in volume of 3.7%. The
stagnant, amounting to 29%. However,
major local deviations are evident.
Compared to Europe, the number of
attracting attention and gaining
publicity. The Internet, direct advertising
and ”multi-channel ad-
leisure time and an increased interest
in a healthy lifestyle, outdoor activities
and recreation are influencing people’s
The alpine destinations’
ski-pass sales
The North American market does not
number of ski days declined from 6.8
snowboarders in North America is high.
vertising” are being used to a greater
interest in alpine skiing in a favourable
differ from the others. It is also
million to 6.7 million. Weak natural
The number of skiers from the USA
extent.
direction.
significantly fragmented. The listed ski
snow conditions at the beginning of the
on Canadian slopes has decreased in
companies Vail Resorts, Intrawest and
American Skiing Company and Booth
season in parts of the Swedish
mountains, fewer holidays at Christmas
recent years. Instead, travel to Europe
has increased, primarily to ski resorts
The family
More and more ski resorts have families
More and older skiers
For Sweden, skiers in the 55+ age group
Creek represent just over 25% of the
and New Year and an early Easter
in Italy and Switzerland. An increa-
as their target group. This takes place by,
will probably increase as the first large
North American market. A structural
holiday are some of the reasons for this.
sing number of Americans also travel
among others things, wider and
“ski generation” learned to ski in the
transformation towards larger but fewer
In Norway, total ski-pass sales rose by
to ski locations in Colorado such as
flatter ski runs, greater accessibility,
seventies. Many in that group still ski
companies has been continuing for a
3.0% to NOK 747 million, including
Steamboat, Aspen and Vail.
shorter distance between accommodation
and plan to continue doing so for many
number of years now. The driving
7% value added tax. These sales had
and the slopes, child-care facilities, ski
years to come. Assuming that an equal
factors behind this change are the
opportunities for economies of scale
and the requirement for creating critical
mass. The economies of scale are
available in purchase coordination,
operation and maintenance, and within
marketing and sales. The critical mass
previously been exempt from tax. Price
increases in Norway were at an average
of 4.0%, resulting in a decrease of 1.0%
in the volume of passes sold. Weak snow
conditions at the beginning of the season,
negative calendar effects with shorter
Christmas holidays, the school holiday
The Alps
The weather varied rather significantly
in this region during winter 2004/05.
The northern parts of the Alps, where
most of the larger resorts are located,
had a good season. On the other hand,
the southern Alps had significantly
schools, youth activities in the evening
hours, cross-country skiing tracks,
accommodation that is more
comfortable, and the possibility for a
certain degree of self-catering at
accommodations. At the same time, ski
tows are being replaced by ski lifts with
number of children and young people
begin to ski as in previous years, the
total ski market in Sweden will grow.
Industry comparison
The analysis on this page compares
SkiStar with three other listed ski
NOK/SEK recalculated to exchange rate 1.05 for the
years up to 99/00 and 1.1 for 00/01, 03/04 and 04/05
and 1.19 for 01/02 and 02/03. FIM/SEK is recalculated
to exchange rate 1.48 for the years up to 99/00
and 1.50 for 00/01. For 01/02 and 02/03 Rukas and
Levis net sales have been calculated to exchange rate
EUR 9.20, 03/04 to EUR 9.10 and 04/05 to EUR 9.45.
is built up primarily via acquisitions of
period in February being concentrated
worse weather and less snow than the
a higher capacity.
competitors. This is partly about
building up volume and partly about
creating cash flows that are sufficient
into the same week, and a very early
Easter holiday affected the result
negatively. The total number of ski days
previous year. On average, the locations
in the northern Alps could stay open for
about 115 days during the season while
More target groups
In the USA especially, the industry is
Analysis listed ski resorts
SkiStar CDA Vail Intrawest
for balancing the often significant
amounted to 5.4 million, which is
the southern Alps could do so for 100
working to broaden its target groups to
Ski days, million 3 13 6 8
investments in lifts, ski slopes, snow
unchanged compared to the previous
days, signifying a striking decrease
include African-Americans, Americans of
Market value (18 October 2005), MSEK 3 083 3 319 9 027 9 342
systems etc. Another driving force in
the structural transformation of the
industry is the companies’ ambition to
conduct operations on several different
geographic areas, thereby decreasing
weather dependency. Both Intrawest and
French CDA have taken further steps
through investments in “warm-weather
services” such as golf resorts and
entertainment and theme parks.
Attempts, at varying degrees of scope,
are also being made to broaden the
year. In Finland, ski-pass sales amounted
to MEUR 46 (46.5) and the number of
ski days was unchanged at 2.7 million.
North America
The number of ski days in the USA
amounted to 56.4 million (57.1) and
18.4 million (19.0) in Canada.
The season was difficult at many
locations from a weather point of view,
especially in the North-West regions
where a number of ski resorts were
compared to the previous year. The
decrease can be explained by the early
spring. During the 2004/05 season,
the total number of ski days decreased
somewhat in the Alps, but its reputation
as the world’s largest ski location is not
threatened. On average, ski-pass prices
increased by 2-3%. Therefore, the total
income from ski-pass sales rose slightly
despite a decline in the number of ski
days. Similar to North America and the
Nordic region, the largest ski resorts are
Hispanic descent, ethnic minorities etc.
Snow production
Investments in snow systems are increasing
in order to decrease
dependence on the weather. Ski resorts
in the Alps with the same objectives are
investing in lifts and slopes at high
altitudes.
Net sales, MSEK 1 035 3 517 6 358 13 108
Return on equity, % 17 11 4 4
Operating margin, % 20 17 10 4
Equity ratio, % 53 40 35 32
Earnings per share, SEK 8:83 43:85 5:02 5:34
Stock exchange price (18 October 2005), SEK 158 531 247 195
Price/earnings ratio, times 18 12 49 37
Equity per share, SEK 55 453 117 135
Share price/equity, % 287 117 211 144
Earnings per share, SEK 6:00 15:82 0 1:06
Return, % 3,8 3,0 0 0,5
10
11

Opportunities and risks
ment and an incentive programme in
which personnel have been offered the
for ski resorts in Sweden, as the Swedish
Tax Agency has determined that VAT
destinations to well-populated areas,
together with alternative means of travel
The alpine ski branch is influenced by a number of global factors which can be turned
to opportunities if handled properly.
Business related risks
Season dependence
A considerable part of SkiStar’s income
Business cycle
Changes in consumers’ disposable
incomes affect private spending levels.
Growth strategy
SkiStar’s growth strategy is primarily
focussed on expanding and increasing
opportunity to purchase convertible
debentures. As per 31 August 2005,
SkiStar’s management owned 546,042
Class B shares in the company. Salary
expenses form the company’s largest
cost item. In order to increase efficiency,
awareness and commitment amongst
should be paid on the basis of lift
transportation. Other sporting
operations in Sweden pay VAT only on
the leasing of sports facilities, and at a
rate of 6%. According to a decision
from the Swedish Administrative Court
of Appeal, alpine skiing should only be
such as rail and air, reduce the negative
consequences of increased petrol prices.
Safety issues
SkiStar works actively with safety issues
by identifying and attending to accident
risks. Risk analyses have been carried
is generated during the December–April
These changes have, in turn, an effect on
the efficiency of the existing destinations
employees, SkiStar emphasises leader-
charged 6% VAT as from 2004. The
out at all destinations in order to ensure
period. SkiStar’s operations are well
winter holidays. SkiStar’s sales and pro-
and, secondly, on the acquisition or
ship issues. The SkiStar Academy trains
Swedish Tax Agency appealed against
insurance protection and reduce various
adapted to seasonal variations, not the
fit track-record show that the company
lease of other ski resorts. All acquisi-
managers to improve their leadership
the decision, and on 8 June 2005 the
types of risks. A thorough emergency
least in terms of the company’s
has been able to cope with swings in the
tions made by SkiStar have progressed
skills. The service level offered to the
Swedish Supreme Administrative Court
plan for SkiStar has been drawn up in
personnel. The majority of winter
business cycle in an effective manner. The
well and have contributed, to a great
guests is an important aspect of the
granted SkiStar review dispensation. A
order to ensure that the entire organisa-
bookings take place before the season,
company’s operations in Norway reduce
extent, to the company’s successful
guests’ total experience. Consequently,
ruling from the Swedish Supreme
tion is well prepared in the case of
which reduces operational risk. With an
the dependency on the Swedish economy,
development. SkiStar acquired
there is a risk that the possibility of
Administrative Court is expected in
future possible accidents and events.
increased number of sales in advance
payments, transactions are completed
as does the fact that the Group’s guests
come from a variety of countries. A large
Tandådalen & Hundfjället AB in
1997, Åre-Vemdalen AB in 1999 and
employing qualified seasonal personnel
will decrease in times of general
December 2005. Should the Swedish
Supreme Administrative Court rule in
Ongoing disputes
at an early stage, which in turn reduces
number of SkiStar’s guests are families,
Hemsedal Skisenter AS in 2000. The
prosperity, when unemployment is low.
SkiStar’s favour, the Group will recover
Discussions are continuing with the
operational risk.
who generally return to our resorts year
after year, and who highly value their
acquisition of Norway’s largest ski
resort Trysil is currently in progress.
Financial risks
MSEK 180 in previously paid VAT.
Changes in VAT rates in the areas in
Swedish Tax Agency as to whether
employee ski passes should be taxed.
Weather dependency
The number of visitors at SkiStar’s
winter holidays. SkiStar experiences a
higher degree of sensitivity to the b
SkiStar’s developed and well-tested
concept of operating alpine resorts is a
Exchange rate risks
Fluctuations in local currencies against
which SkiStar conducts operations will
impact upon the Group’s income and
SkiStar is not currently involved in any
other disputes which are deemed to have
re-sorts is affected, to a certain extent,
usiness cycle in Åre, whose target group
good pre-condition for continued
other currencies affect holiday habits
results.
any significant effect on the company’s
by weather and snow conditions. A late
is primarily organisers of seminars and
successful future expansion.
and can, consequently, also have an
income and financial position.
winter and a poor supply of natural snow
will decrease demand. However,
operational risk is limited, as
approximately 76% of ski lift capacity at
conferences.
Competition
The Alpine skiing industry is
Bed capacity
The profitability of alpine skiing resorts
is dependent on the availability of beds
im-pact on the number of guests at
SkiStar’s alpine ski resorts. The Group’s
results are also affected by the relation
between the Swedish krona and the
Electricity costs
SkiStar’s business activities consume
large amounts of electricity. Consequently,
changes in electricity rates
Sensitivity analysis
The sensitivity analysis describes the
manner in which the Group’s results
SkiStar’s destinations has a secure supply
characterised by high entry levels, which
and the occupancy rate. It is important
Norwegian krone exchange rates.
have an effect on the Group’s costs and
will be affected by changes in certain
of snow from snow systems. The conse-
restrict competition. Sun and surf
for SkiStar to control the bed capacity at
SkiStar does not hedge its foreign busi-
income. According to an approved poli-
variables important to the Group. The
quences of the greenhouse effect are being
holidays and weekend city breaks, are
the destinations in order to optimise the
ness activities. Ski lifts and piste groming
cy, the main portion of the Group’s elec-
assumptions regarding the effect on
debated. According to studies carried out
considered to be the company’s main
occupancy rate by changes in demand
machines, for example, are purchased
tricity consumption is to be contracted
income of changes in occupancy rates
by the Swedish National Environmental
competitors. Other industries are
and by setting the correct
abroad and these prices are affected by
at a fixed price. Approximately 40% of
are based on all forms of rented tourist
Protection Agency, the expected warmer
significant competitors to SkiStar, such
accommodation prices throughout each
the exchange rate fluctuations.
electricity costs for the 2004/05 season
accommodation and refer only to sales
climate will not lead to snow-free winters.
as rarely-purchased goods and invest-
stage of the season. SkiStar is actively
were contracted at a fixed price during
of ski passes. Changes in other types
On the contrary, the amount of snow is
predicted to increase, but there will also
ments in the home. Other competitors
are comprised of other alpine ski resorts
working to increase the number of beds
at its destinations, as well as to increase
Investments and interest rates
The alpine skiing industry requires
winter and autumn 2005. Local
electricity producers supply
of income in the sensitivity analysis are
deemed to be offset by increased and
be an additional number of mild periods
in Scandinavia and the Alps. By inves-
the share of beds for which the company
major capital investments in order to
approximately 30% of the Group’s
decreased costs. In calculating the
during the winters. A milder climate may,
ting in service-minded personnel, leader-
acts as an agency. It is also important to
maintain and increase competitiveness.
electricity requirements at a local price,
sensitivity to a change in electricity
in the longterm, lead to shorter winter
ship skills, modern lifts, snow systems,
maintain demand by modernising older
SkiStar has strong cash flows enabling
which is below the market price of the
prices, only the portion of electricity
seasons. If the seasons at SkiStar’s resorts
IT, restaurants, etc., SkiStar maintains
cabins and apartments. New investments
a high and self-financed rate of invest-
Nordic Power Exchange, Nordpool.
consumption that is directly affected
were to start a week later and end a week
the high standards by which our guests’
in cabins and apartments are primarily
ment. If the interest rate were to
This local price is significantly less
by changes in the market price must be
earlier, the impact on results would be
winter holiday experiences and comfort
conducted by external parties or part-
increase, cash flow could be used to
variable than the market price, which is
taken into consideration. All interest
limited. Temperatures are expected to
levels are improved every year. SkiStar’s
owned companies, as well as by SkiStar.
repay loans during a shorter period of
the reason these volumes are not heged.
rates are variable, and a change in
change more in the Alps than in
destinations are within easy reach of
The attractiveness of SkiStar’s
time, thereby decreasing financing costs.
This implies that approximately 30% of
interest rate levels, therefore, has a
Scandinavia, which is the reason the
well populated areas via its geographical
destinations generates investor interest in
SkiStar has gradually decreased its level
the winter’s expected electricity
direct effect on interest charges.
effects of global warming could provide
SkiStar with new business opportunities.
proximity and affordable transport
solutions in the form of trains, planes,
providing capital, which leads to stable,
long-term growth in the number of
of net debt during recent years. External
borrowing currently takes place only in
consumption will be directly influenced
by fluctuations in the market price.
Sensitivity analysis
The Group’s exposure to weather changes
has also reduced due to the fact that the
destinations are in a variety of geographic
locations and, therefore, involve differing
weather conditions.
buses and hire cars. Other important
competitive strengths are the company’s
market position, its strong financial
position, its well-known and attractive
brand names and high cash flow.
tourist beds.
Personnel
SkiStar’s continued success is dependent
on motivated and committed employees.
In order to retain key personnel, SkiStar
is working with management develop-
the local currencies of SEK and NOK.
The loan portfolio includes only shortterm,
fixed interest rate loans.
Other risks
VAT
VAT on alpine skiing is currently 12%
Petrol prices
Many of SkiStar’s guests travel in their
own cars to the destinations. These
travel habits are affected by the level of
petrol prices and taxation of company
cars. The proximity of alpine
Occupancy
Ski pass prices
Interest
Payroll expenses
Change
Effect
on income
+/-10% +/-25 MSEK
+/-10% +/-54 MSEK
-/+1% -/+7 MSEK
-/+10% -/+30 MSEK
Market price of electricity -/+10 öre -/+2 MSEK
12
13

The Group’s operations
Profits before tax increased to MSEK 182 (177), the best result in SkiStar’s history. A weak
winter season has been compensated by higher capital gains and lower net financial income.
Key points for the year
• Acquisition of Trysil, Norway’s
largest ski resort.
• Net sales and profit:
- Net sales reduced to MSEK 977 (990).
- Income before tax amounted to
MSEK 182 (177).
- Income after tax decreased to MSEK
172 (313).
- Net earnings per share amounted to
SEK 8:83 (16:26) during the period.
In the previous year a large one-off
tax revenue amount was reported.
• An increased dividend of SEK 6:00
(5:00) per share is proposed.
• The current booking situation for
the 2005/06 season showed a 4%
improvement at the beginning of
October than at the same point in
time in the previous year.
Organisation and legal structure
All operations in Sweden are
conducted in the Parent Company,
SkiStar AB (publ).
Property
Operations in Norway are conducted
in the wholly-owned subsidiary,
Accounting/Finance
/IR/Purchases
HR/Guest Service
Hemsedal Skisenter AS and the 65%
owned subsidiary Hemsedal Booking
AS. Hemsedal Skisenter AS has an
option to purchase the outstanding
shares in Hemsedal Booking AS in
CEO
2008. The Group’s managerial group
was comprised of twelve individuals
during the year: CEO, CFO,
Market and Sales Manager, Human
Resources Manager, Market Manager,
Sales Co-ordinator, IT Manager,
Property Manager and four Heads of
Destinations, one for Åre, Vemdalen,
Sälen and Hemsedal.
Operational structure
SkiStar’s operations are divided into two
business areas and three staff
functions. Business Area Destinations is
comprised of four areas of operations:
Sälen, Åre, Vemdalen and Hemsedal.
The second business area is the recently
formed Business Area Property. The
staff functions are divided into SkiStar
Travel (comprising Marketing/Sales/IT),
Accounting/Finance/IR/Purchases and
HR/Guest Service.
Staff functions
Accounting, Finance, Purchasing, IR
Accounting, finance, purchasing and
IT are co-ordinated under the CFO.
SkiStar Travel
Accounting principles and reporting
routines are, amongst other things, coordinated
under Accounting in order to
achieve standardised reporting for the
Group. In addition, work with
standardised models for financial
control, such a follow-up of
effectiveness and profitability, is
conducted here. All credit risk
management and interest rate hedging is
handled centrally and follows adopted
policies. The Investor Relations function,
IR, handles information to the stock
market in the form of annual reports,
interim reports, press releases, analyst
meetings, capital market days and
financial information via the website.
Certain purchases are handled centrally
in order to generate purchase synergy
effects.
Human Resources, Guest Service
To ensure that all of the functions and
departments of the Group prioritise and
work with leadership and guest service
in a standardised manner, the overall
human resources function for the Group
has been centralised under a Human
Resources Manager. See also
pages 18–19.
SkiStar Travel
The Group’s marketing, sales and IT
has been co-ordinated under the name
SkiStar Travel since January 2005.
This co-ordination has taken place in
order to the take full advantage of and
gain the greatest possible effect from
SkiStar’s total resources in these three
areas. See also pages 20–22.
Business Area Properties
Business Area Properties has been
operational since January 2005. The
responsibilities of this business area
include generating profits and making
financial resources available via sales
of older properties and utilising these
resources to develop and build modern
properties at SkiStar’s destinations.
More information on Business Area
Properties can be found on page 34.
Business Area Destinations
Business Area Destinations is divided
into four areas of operation: Åre,
Vemdalen, Sälen and Hemsedal. This
business area is presented on pages
24–33.
Acquisition of Trysil in progress
On 19 May SkiStar submitted an offer
to Trysilfjell BA, the owners of the ski
resort in Trysil, Norway, for acquiring
the companies which together conduct
alpine skiing activities in Trysil.
Trysilfjell BA accepted SkiStar’s offer on
23 May. The offer entails that SkiStar
offer a cash payment of a maximum
of MNOK 190 or a maximum of
1,672,000 B shares, or, alternatively,
a combination of cash and shares.
Thereafter, the seller informed SkiStar
that the purchase price would be
comprised of a maximum of 60,000
B shares. These shares will be acquired
on the basis of a repurchase of shares.
The date of taking possession was
agreed at 1 November 2005. The
Norwegian Competition Authority has
not, to date, approved this transaction.
It is the Competition Authority’s
opinion that after the acquisition of
Trysil, SkiStar will have a dominating
position in the operation of alpine ski
resorts in Scandinavia. A final ruling
from the Norwegian Competition
Authority is expected in mid-November
2005, and therefore the acquisition
has been slightly delayed. If the
Competition Authority’s decision is
negative for SkiStar, the company will
lodge an appeal with a superior
body, the Norwegian Ministry of
Modernisation. In the event of such an
appeal, the acquisition will be further
delayed by a few months. In 2004 Trysil
generated total net sales of MNOK 230
and reported profits before tax
amounting to MNOK 24. Trysil is
Norway’s largest ski resort with a
market share of 15% of ski passes in
Norway. The company conducts skiing,
ski hire and accommodation agency
activities. Ski school activities are
conducted by one of the associated
companies. Trysil is a high-standard,
modern ski resort. There is ski lift
capacity for 32,400 skiers per hour,
with 22 ski lifts and 5 chairlifts. There
are 64 slopes. The companies
administer 3,300 of a total of
approximately 8,000 commercial beds
in the area. The occupancy rate for the
cabins and apartments, provided on an
agency basis, was 67% in the 2004/05
season. After the completion of the
acquisition, SkiStar’s market share of ski
passes in Scandinavia will increase from
32% to 42%. With the acquisition of
Trysil, SkiStar provides a
comprehensive offering in the Nordic
markets, with Hemsedal in Norway and
Åre in Sweden having more advanced
profiles, and Trysil in Norway as well as
Sälen and Vemdalen in Sweden
focusing on families. The acquisition
provides synergies primarily within
Marketing, Sales and IT.
Division of operating income and costs, MSEK
Operating income 2004/05 2003/04 +/– +/–, %
Alpine skiing/Lift 545 560 –15 –3
Accommodation 162 162 0 0
Ski rental 91 85 6 7
Ski school 37 38 –1 –3
Sports outlets * 24 42 –18 –43
Properties 59 57 2 4
Capital gains 45 25 20 80
Other ** 72 49 23 47
Total 1 035 1 018 17 2
Operating expenses
Operating income and results per business area, MSEK
Cost of materials –56 –62 6 –10
Personnel costs –313 –305 –8 3
Other costs –336 –324 –12 4
Total –705 –691 –14 2
* Leased sports outlets generated net sales of MSEK 20 in 2003/04.
**Other income includes, amongst other things, recently-started charter flight operations.
Åre Vemdalen Hemsedal Sälen Property
2004/05 2003/04 2004/05 2003/04 2004/05 2003/04 2004/05 2003/04 2004/05 2003/04
Net sales 265 238 70 74 170 163 472 515 0 0
Other income 3 0 1 0 0 0 9 2 45 25
Operating income 268 238 71 74 170 163 481 517 45 25
Operating expenses –205 –187 –52 –51 –128 –111 –320 –341 0 0
Depreciation –31 –31 –8 –7 –30 –24 –53 –54 0 0
Operating income 32 20 11 16 12 28 108 122 45 25
Operating margin, % 12 8 15 22 7 17 22 24 100 100
14 15

Vision, goals and
strategies for success
The value of the shareholders’ invested capital shall be increased by creating value for SkiStar’s
guests, employees and other interested parties.
Vision
year amounted to 0.9% and the organic
area should preferably be run by
SkiStar’s vision is to create memorable
growth for similar business operations
external, professional parties.
winter experiences as the leading
was negative at -0.6%.
• SkiStar will work to ensure that all
operator of European alpine skiing
destinations SkiStar shall take a leading
Fulfilment of goals
companies providing services at alpine
destinations achieve high quality and
position in the conceptualisation,
The overall goal is to increase the value
a high level of service in order to
integration and development of these
of the shareholders’ capital. During the
strengthen the destinations’ brand and
types of services.
2004/05 financial year, the share price
offer the guests a better experience.
Goals
increased by 34% to SEK 150:00 and it
is proposed that dividends be increased
• SkiStar Travel is the Group’s travel
organisation and is responsible for
A fantastic view over the “The Scandinavian Alps” in Hemsedal
Overall goals
The value of the shareholders’ invested
by 20% to SEK 6:00. The fulfilment of
financial targets and organic growth can
creating holiday packages, conducting
administering and selling
creates a lack of dependency on cars
for transportation during guests’
ously be improved. The strategy is to
use professional selection processes
secured at an early stage, entailing
lower risk and a more even cash flow.
capital shall be increased by creating
value for SkiStar’s guests, employees and
be seen in the tables. The goals that
have not been achieved are the targets
accommodation, transportation and
SkiStar’s own products and services.
holidays.
• Development of the Group’s snow
for recruitment, and to train and
perform continual follow-ups.
Acquisition strategy
other interested parties. This focus has
for the operating margin and organic
• The Business Area Properties shall
systems is a high priority. The snow
• The alpine destinations will be
• The acquisition strategy is to acquire
been a significant factor in SkiStar’s success
growth. Negative calendar effects of an
make financial resources available
systems are being continuously
continuously improved in consulta-
selected alpine destinations having
and its leading position in the market.
early Easter holiday and fewer public
and generate profits by refurbishing
expanded in order to offer good
tion with the guests and their wishes,
high potential, later developing them
Financial goals
holidays at Christmas and New Year
combined with a poor level of natural
and selling older properties and
utilising available resources to
skiing facilities, regardless of the
natural snow conditions.
which will result in more satisfied
guests who will return to SkiStar year
at a high level of profitability.
• The acquired alpine destinations
In order to make possible an offensive
snowfall at three of SkiStar’s four
construct new, modern tourist
• The destinations have differing
after year.
should be of a size greater than
strategy while simultaneously balancing
destinations have negatively impacted
accommodation at SkiStar’s
profiles and can thereby combine to
• The improvement of accessibility,
critical mass and shall only to a
operational risks, SkiStar stresses the
organic growth and the operating
destinations.
attract large customer groups.
simplicity and comfort for our guests
limited extent compete with SkiStar’s
importance of a strong financial foundation.
The goal is an equity ratio above
35%. At the current interest rate level,
margin.
Strategies
Operational strategies
• Well-managed products and services
• SkiStar shall ensure that there is a
wide range of affordable transport
alternatives to the respective
will be continual.
Market and sales strategies
existing destinations for the same
guests.
• In order for an alpine destination to
the return on equity should amount
to 13.9% and the return on capital
Concept and business model
• The core business is alpine skiing,
result in a higher number of returning
guests, who are the best advertise-
destinations, firstly via agreements
with external companies and secondly
• All IT, marketing and sales resources
will be co-ordinated in order to
be an interesting potential object of
acquisition, it should be possible to
employed should amount to 10.9%.
with the focus on the guest’s skiing
ment for the company.
by SkiStar offering its own transport
obtain the greatest possible effects for
structure the destination in
These targets are established on the
experience.
• Thanks to a well-planned infra-
solutions.
SkiStar as a whole.
accordance with SkiStar’s concept.
basis of three-month treasury bills for
which the average interest rate during
• Profitable and strategic activities within
lifts/alpine skiing, ski school and ski
structure, the guests will find
everything within walking distance.
Management and service strategies
• The primary purpose of the
marketing and sales strategies is to
Cross-training and benchmarking
the 2004/05 financial year was 1.87%.
rental will, in the long-term, be con-
• The accommodation and skiing areas
• Through a process-controlled
increase the number and maximise the
SkiStar’s employees have extensive
The operating margin should, in the
ducted within the company’s own
are located close together in order to
organisation and strategic
percentage of alpine skiers at SkiStar’s
experience and knowledge in operating
long-term, exceed 22%. All financial
organisation at its respective
supply a large quantity of
management, SkiStar will create a
destinations.
alpine ski resorts. By organising regular
targets for the 2004/05 financial year
destinations.
accommodation near the ski lifts. The
business culture characterised by
• SkiStar’s destinations shall be
meetings between management at the
have been met, apart from the operating
• Business activities outside the core
so-called “Ski In, Ski Out” concept
learning, high performance standards,
illustrated and their profiles
various destinations, a process continual
margin, which was two percentage
points under target.
Fulfilment of financial targets
care, focus on guests and pride.
Management shall also show a
strengthened by marketing and
adaptation to various target groups.
process of cross-training always be
active. By comparing the business
Operational goals
SkiStar’s growth target is that organic
growth should exceed inflation by at
least 3% annually, in addition to any
growth on the basis of acquisitions.
Inflation in Sweden during the financial
Outcome 2004/05 Outcome 2003/04 Outcome 2002/03
Target
Equity ratio, % 53 52 44 >35
Return on capital employed, % 12 13 15 11
Return on equity, % 17 36 17 14
Operating margin, % 20 21 22 >22
Organic growth above inflation, % –1 3 8 >3
willingness to change in order to
make further improvements.
• Good management is one of the
cornerstones of SkiStar’s success,
which is the reason managerial
competence is continuously develped.
• Service for the guests shall continu-
• The co-ordination of sales via one
telephone number and one website
will enable increased cross-sales,
higher levels of service and greater
effectiveness.
• Increases in advance sales lead to
a greater portion of earnings being
activities and working models of the
various resorts, premises for more
effective operations and reinforced guest
relations will be created, thereby
increasing growth and profitability.
16 17

Management and employees
Good leadership is an increasingly important competitive factor for SkiStar and a platform
for achieving its vision to “create memorable winter experiences” for its guests.
Competent management enhances
profitability
SkiStar Academy
Over a four-year period SkiStar has
tool, the Target Board, for on-going
follow-up of the guests’ opinions on
Behind each successful customer
established a training programme for all
products and services and the
interaction lies competent management
managers in the company. This
employees’ opinions on their work
and highly motivated employees. For
programme is focused on the managers’
situation and place of work. A
this reason, SkiStar has identified
own experience, and aims at creating
number of issues are compiled each
management and skills development as
the basis for on-the-job training.
week at each work place and are
a strategically important area.
Managers who have followed the
followed up via the Target Board. In
HR (Human Resources) policy
programme shall have competencies
that contribute to SkiStar’s ability to
this manner, problems and weaknesses
can be immediately corrected and
On the basis of a process-controlled
provide its employees with the best
remedial actions can be followed up as
organisation, SkiStar will create a
conditions for development. These skills
early as the following week. Managers
business culture characterised by
can be summarised by one idea–process
have been included in producing the
learning, high performance standards,
care, focus on guests and pride. This
process will also encourage an attitude
of willingness to change in order to
extend the improvements.
coaching.
Leadership as a competitive tool
A large part of our guests’ experience
during their holidays is their interaction
values to be measured in order to
increase commitment. An external
market research company surveyed
SkiStar’s employees as to their opinion
of SkiStar as an employer and whether
Convertible debenture loan
programme
In order to create a long-term commit-
illness amounted to 3.8%. The division
of the employees over the various areas
of operation is shown in the pie chart.
Going to ski school makes everyone ski stars.
Average number of employees
Process-controlled organisation
with SkiStar’s employees. The purpose
of developing skills is to provide our
they believe that they receive as much
from the company as they give to it.
ment to the development of the company,
SkiStar initiated a convertible debenture
Of the total number of employees,
38% (41) were women. Net sales per
A process-controlled organisation implies
guests with a memorable winter
The responses were compiled in a
loan programme in 2004 totalling MSEK
employee decreased by 1% to TSEK
that each employee has both a
experience. Competent leadership is,
Satisfied Employee Index and 81%
25. The debentures expire in 2008 and
1,122. The number of permanent
responsibility and an opportunity to
therefore, an important competitive
(79) of personnel said that, generally
have a conversion rate of SEK 79:50. The
employees as per 31 August was 330
participate in decisions affecting the
tool, both now and in the future.
speaking, they were satisfied with
SkiStar share has since displayed a
(333) individuals and the employee net
employee’s respective area of work.
Participation and the opportunity to
influence one’s own work situation is
the key to having a motivated work-
Target Board and
Satisfied Employee Index
SkiStar has established an internal
their employer and their work
sitution.
Recruitment
positive trend and the share price at the
end of the financial year was SEK 150:00.
Training and renewing competence
sales amongst permanent employees
amounted to 4% (7). During the peak
season, SkiStar had a total of
1,829 (1,819) employees.
force. Management is responsible for
Prior to each season, approximately
The percentage of permanent employees
setting boundaries and determining the
direction via the company’s vision and
the overall operational objectives. These
Copy – Compete
Level of difficulty
2,000 employment interviews are
conducted and approximately 1,500
individuals, including returning
with university degrees was 13% (9) as
per 31 August 2005 and SkiStar’s
investments in upgrading or renewing
Net sales per employee,
TSEK
Employees over the various
areas, %
objectives are then divided into targets
seasonal workers are recruited. Great
competence amounted to MSEK 8 (7)
for the respective departments, after
which managers and employees discuss
Leadership
importance is attached to the selection
process in order that the most
during the financial year. The major
portion of the costs for renewing
the manner in which the target is to be
Guest relations
appropriate employee is placed at each
competence was comprised of training at
achieved. During this process, the targets
Image
location. An introduction programme is
the SkiStar Academy.
evolve from being only the company’s
targets to becoming each employee’s
individual targets. This process continually
exists and involves new
employees every season.
Price
Product
Group
Time to copy competitors
held at the respective destination.
Employee statistics
The average number of employees during
the 2004/05 financial year amounted to
871 (875). Employee absence due to
18 19

SkiStar Travel
Since 1 January 2005, Sales, Marketing and IT have been organised into an overall Group
staff function, SkiStar Travel. The primary task of SkiStar Travel is to function as the Group’s
travel operator.
Duties and goals
SkiStar Travel’s primary duty is to
market and sell the Group’s own
services and products, such as ski
passes, ski hire, ski school
lessons/courses and accommodation.
In addition, SkiStar Travel is to ensure
effective and affordable transport
solutions to all destinations, either by
working together with external
companies or by arranging its own
transport solutions. The overall
operational goal is to maximise the sale
of all of SkiStar’s products and services.
Co-ordination of the strategic areas
By co-ordinating the strategic areas of
IT, Sales and Marketing, resources have
been made available for increasing the
recruitment of new guests. One part of
the company’s strategy is to ensure longterm
profitability. New recruitment is
focused on two primary geographical
areas. In Sweden and Norway, efforts
are being targeted towards encouraging
a greater number of people to start
skiing, i.e. to expand the total market.
In Denmark and Finland, efforts are
mainly focused on attracting a greater
number of existing skiers to choose
to take their ski holidays at one of
SkiStar’s destinations. One of the
greatest changes for this season is that
SkiStar has distributed 3.6 million
catalogues to potential guests in
Sweden, Norway, Denmark and
Passion for skiing
Finland, as compared to the distribution
of approximately 400,000 catalogues in
the previous year. Due to the co-ordination
of the organisation of the company,
this substantial increase in catalogue
distribution can take place at practically
the same cost as for the previous year.
The co-ordination within the
company will also facilitate the
integration of new destinations. In
addition to marketing, sales have also
been centralised. SkiStar’s call cetres,
which can be reached at all destitions
and via an external operator, are now
interconnected in Sweden and can sell
all of SkiStar’s products and services at
all Swedish destinations. This is posible
due to modern and effective IT
solutions. The centralisation of sales
has resulted in higher effectiveness
and level of service, with an improved
answer frequency and shorter waiting
times for telephone bookings. Alongside
telephone bookings, the percentage of
Internet bookings has increased. During
the 2004/05 season, 46% of total sales
were made prior to the guests’ arrival,
21% via telephone, 15% online, 5%
via travel agents, and 5% were booked
by guests prior to their departure from
the destination in the previous year. The
percentage of accommodation bookings
via the Internet amounted to 29%, an
increase of 6 percentage points
compared with the previous season.
Winter holidays with practically
unlimited choices
SkiStar’s business model and concept
emphasize alpine skiing and the guests’
skiing experience. Creating and
occupying a large number of rented beds
is a fundamental part of the business
model. The range of accommodation,
together with other strategic products
and services such as ski passes, ski rental,
ski schools and, in certain cases, transport,
should be easily available to the
guests via the company’s call centres and
website. SkiStar’s product and services
offering is compiled in SkiStar’s sales
system, Ski*Online, which consists of a
number of modules for the booking of
accommodation, ski school
courses/lessons, ski equipment hire
and purchasing ski passes. In addition,
check-in and check-out, package deals,
sales via agents, and applications for and
handling of interest-free credit
payments can all be done via the system.
Guests also have the possibility of
booking flights, trains and bus tickets on
the website. This year, SkiStar has begun
a collaboration with Hertz providing
guests with the opportunity to book hire
cars via SkiStar at extremely favourable
prices, under the condition that guests
also book accommodation or ski passes.
This concept is called SkiCar. The hire
cars are collected at one of the 270
Hertz stations in Sweden, Norway and
Denmark. This makes the destinations
more accessible, especially for guests
living in city regions who do not have
access to a private car. All in all, the
offer described above makes it possible
for guests to customise their own winter
holiday. The Ski*Online sales system
provides SkiStar with details of the
guests and their requirements, enabling
individual marketing activities and
personal offers targeted towards a
variety of guest categories.
Markets
SkiStar’s guests are primarily from the
Nordic countries. Guests also come
from other countries such as Russia, the
Baltic States and Great Britain (see the
table on page 22). Sweden and Norway
are considered home markets, meaning
that all marketing and sales take place
via the company’s own channels.
New for this year is that Denmark
and Finland will also be targets of
direct sales and marketing activities via
SkiStar’s own channels to a much
greater extent than before. Accordingly,
Sales, %
Advance bookings
the SkiStar catalogue has been
distributed to almost 1 million house-
holds in Denmark and Finland.
Similarly, our call centres have been
expanded to include Finnish-speaking
sales personnel. Investments in
improved and more affordable transport
solutions are continuing. Last
year’s initiative with company-operated
charter flights, SkiCharter, at attractive
prices from Helsinki, Copenhagen and
Stockholm to Åre and Vemdalen has
become very popular and, as a result,
capacity is being increased on existing
routes. In addition, two new routes are
being introduced, one from Malmö and
one from Gothenburg. As a supplement
to its new markets, SkiStar is working
together with a number of retailers,
both carriers and travel agents.
Brand positioning
SkiStar’s brand portfolio is comprised
of the destinations’ brands, the brands
associated with the various resorts at
the destinations and the shared SkiStar
brand. The catalogue, website and
concept campaigns are examples of the
joint marketing activities for which the
SkiStar brand is used as the initial
representative of the company and for
which the primary intention is to attract
new guests. In market communications
for which the primary objective is to
consolidate the destinations’ positions
and emphasize their range of facilities,
products and services, the respective
destination brands are the principle
representative of the company.
Prior to departure
last winter Telephone Web Travel
agents
At the destination
Cashier's office
Ski school 0 40 27 0 33
Ski rental 0 10 7 0 83
Transport 0 70 18 12 0
Accommodation
16 43 29 12 0
Ski passes 0 7 6 0 87
Total 5 21 15 5 54
46 54
20
21

Environmental work
SkiStar has been voted best climate improver in Services industry and received five stars of a possible
five in the Swedish insurance company Folksam’s survey of listed companies’ environmental work.
Environmental policy
of the company’s total emissions. The company’s
Land development
SkiStar shall take the environment into
air travel has declined during the year, at the
• Cabins are continually being built
consideration in all of its operations in
same time as the percentage of train journeys
at the mountain resorts. These are
its efforts to create memorable winter
has increased and car travel has been made
built as far as possible, from recy-
experiences. Through systematic
more effective. Furthermore, approximately
cled materials. SkiStar consistently
improvements, SkiStar’s guests will view
95 percent of purchased heating and approxima-
endeavours to engage the services of
SkiStar as the environmentally sound
tely 91 percent of purchased electricity is from
local construction firms and acquires
www.skistar.com
choice. SkiStar’s destinations shall:
renewable energy. The company’s climate work is
materials locally, whenever possible.
• Maintain the natural beauty of the
of a very high quality.”
• The programme to construct accom-
mountain environment.
”The company’s environmental indicator, that
modation close to nature (“Ski In
• Design and choose products and
is, emissions in relation to net sales, amounts to
– Ski Out”) also illustrates the
services in such a manner as to
3.4 tonnes of CO2/MSEK in 2004. This implies a
aspiration to restore the surface of
limit their environmental impact at
reduction of approximately 8.6 percent compa-
the land surrounding the buildings.
purchase, production, utilisation and
red with 2003. This change is due to the reduced
Existing vegetation is saved and
disposal.
levels of emissions from fuel, on the basis of the
replanted and trees in the vicinity are
• Make every effort to continually
rationalisation of travel between resorts and
protected during the construction
Winter SkiStar catalogue.
reduce each significant negative
environmental impact by reducing,
improved controls for purchases of vehicles, and
due to less airplane travel and the effectiveness of
period.
• Work is continually in progress to
Advertisement October 2005.
in relative terms, the use of natural
resources (materials, fuels and
car travel. In absolute terms, the reported emissions
have reduced by approximately 215 tonnes. The
prevent erosion on the mountainsides
by means of terracing and
energy) and reducing the amount of
company’s environmental trends are positive.”
planting vegetation.
Examples of the latter are direct
advertising, distribution of printed
supplement and strengthen each
another, continually increasing the
The requirements and basis of a guest’s
winter holiday do not, however, remain
waste products (materials, emissions
to land, air and water).
Noise disturbance and exhaust fumes
brochures and e-mail to the
destinations’ regular guests. The wellknown
destination brands have the
strength of the SkiStar as a brand. The
purpose of SkiStar’s marketing is to
emphasis the characteristics of the
constant over time. SkiStar’s strategy
is, therefore, to offer a diverse range of
experiences by providing a number of
• Significantly improve employees’
environmental knowledge and
awareness.
• SkiStar is continuing to constantly
phase out two-stroke engines. When
purchasing new snow scooters, four-
Climate trend,
tonnes CO2/MSEK
main contact with the market, as it is
to these destinations that guests travel
respective destination. In doing so, each
destination achieves a clear position in
destinations, resorts and price categories
to choose from. As a result, the
Climate activities
stroke engines are chosen as far as is
possible. These new snow scooters
for their memorable winter experiences.
relation to other SkiStar destinations
possibility of establishing a lifelong
Each year, all Swedish listed companies
with four-stroke engines cause a
The SkiStar brand is primarily for the
and competitors. This is expected to
relationship with the guest is increased,
report carbon dioxide emissions (CO2)
reduction of 50% in the noise level,
travel agent selling and arranging
generate a greater number of satisfied
in spite of the fact that the guest’s
to “Klimatindex” – the Swedish
improving the environment for both
package deals to the respective
guests as the probability of the guest
requirements may change over time.
insurance company Folksam’s survey of
guests and personnel.
destinations. In this manner, the brands
booking the right destination increases.
Swedish listed companies’
• The majority of all snow scooters
environmental work. The results below
are run on environmentally friendly
Percentage of guests per nationality, %
refer to Klimatindex 2005, which for
SkiStar covers the 2003/04 financial
alkylate-based fuels, which is a
purified fuel. The alkylate-based
Åre Vemdalen Sälen Hemsedal SkiStar total
Sweden 78,4 96,4 88,4 22,1 77,8
Norway 4,5 0,2 1,1 42,2 7,4
Denmark 4,1 1,0 9,6 26,6 9,5
Finland 6,7 0,7 0,4 0,2 2,0
Great Britain 1,7 1,2 0,1 3,4 1,1
Russia/the Baltic States 4,0 0,4 0,1 0,6 1,2
Germany/Benelux 0,4 0,1 0,2 4,2 0,8
Other 0,2 0,0 0,1 0,7 0,2
Total 100,0 100,0 100,0 100,0 100,0
* The percentage of guests has been calculated based on a number of occupancy days. An occupancy day is a day booked in one of the cabins/apartments managed by SkiStar.
year:
”SkiStar conducts genuinely committed
environmental improvement activities. During
2004 the company continued its work in
improving the efficiency of travel within resorts.
Amongst other things, controls for the purchase of
vehicles have improved, motor fuel consumption
has been reduced and a systematic conversion from
standard petrol to alkylate petrol is underway.
Together, these measures have saved
approximately 150 tonnes in carbon dioxide
emissions, corresponding to more than 3 percent
fuel is more expensive than petrol,
however the exhaust fumes contain a
lower level of poisonous substances.
Energy consumption
• Energy consumption of electricity
and heating comprises a major
portion of SkiStar’s environmental
impact. Therefore, SkiStar has
chosen to purchase electricity and
heating based on renewable energy
to the greatest possible extent.
Reported CO2 emissions,
CO2 tonnes
Emission category 2004 2003
Fuel 3 193 3 395
Travel 129 143
Heating 21 22
Goods transportation 8 8
Electricity 5 4
Total 3 356 3 572
22
23

Ski pass sales per ski day, SEK
Business Area
Destinations
The operation of SkiStar’s four alpine destinations has been centralised to the joint business
area Destinations. Destinations is responsible for the strategic product areas Alpine skiing/Lift,
Accommodation agency, Ski rental and Ski school.
Localisation of Destinations
SkiStar owns and operates ski resorts in
alpine destinations in Sälen, Åre and
Vemdalen in Sweden and in Hemsedal
in Norway. Sälen is situated in northwest
Dalarna, 430 km from Stockholm.
Vemdalen is situated in Härjedalen,
480 km northwest of Stockholm. Åre is
situated in Jämtland 650 km northwest
Stockholm. Hemsedal is situated 230
km northwest of Oslo.
Strategic product areas
Alpine skiing/Lift
Alpine skiing is the Group’s core
operation. The majority of SkiStar’s
profits come from the sale of ski passes.
Marginal income for each additional
ski pass that is sold is high. The sale of
ski passes decreased during the 2004/05
financial year by MSEK 15(-2.7%) to
MSEK 545. The average price change
was 1.6%. The Group’s market share of
ski pass sales was unchanged at 50% in
Sweden and 13% in Norway. The
number of ski days within the Group,
where one ski day is a day’s skiing
with a ski pass, reduced by 101,000 to
3,333,000 ski days.
Accommodation agency activities
In order to ensure the quality of the
operations, SkiStar has control of the
rental of a large number of beds at all
of its destinations. In this manner, the
occupancy rate can be optimised and
any weak sales can be corrected at an
early stage via offensive marketing
efforts. The occupancy rate in the
company’s own cabins and apartments
and for those for which it acts as an
agent decreased during the 2004/05
season (Christmas–1 May) to 82%
(87). The number of units managed by
SkiStar during the season increased by
7%. Income from accommodation
2%
Åre
booking activities remained unchanged
at MSEK 162 and accommodation
prices were on average unchanged
compared to the previous year.
Ski rental
In order to ensure that there is always
sufficient ski equipment for rental on
hand and that the equipment is of the
quality required, ski rental operations
have been identified as a strategically
important area for SkiStar. During the
financial year, SkiStar had 15 ski rental
outlets, six in Sälen, seven in Åre and
two in Hemsedal. Net sales from ski
rental increased by MSEK 6 to
MSEK 91. The new ski rental
operations in Hemsedal generated net
sales of MSEK 7.
Ski school
SkiStar operates its own ski schools at
all of its destinations. The ski school
operations are strategically important
for SkiStar, as a life-long interest in
skiing is founded and long-term
contacts established between the
destination, the skiing instructors
and the guests. Children and young
people who learn to ski early in life
often develop a life-long interest in the
sport which they, in turn, pass to their
Hemsedal
Oslo
Sälen
children. Net sale for the ski schools
increased during the financial year by
MSEK 1 to MSEK 37. The price of a
ski school lesson increased by 1%
compared to the previous year. The
number of pupils at SkiStar’s ski schools
remained unchanged at 75,400.
Other product areas
Vemdalen
Sporting goods outlets
A sporting goods outlet is operated by
the company in Sälen and sports
products associated with alpine skiing
are sold at all ski rental locations.
During the year two sports outlets in
Sälen were leased to the sporting goods
chain Stadium. Last year these sports
outlets generated net sales of
Stockholm
MSEK 20. During the 2004/05 financial
year the Group’s sporting goods outlet
operations reported net sales of
MSEK 24, which is an increase of
MSEK 2 compared with the previous
years, after adjustments for leased
outlets.
Properties
Caretakers, carpenters, electricians,
cleaners and other service personnel are
employed in the product area
properties. Revenues within properties
are comprised of rental income for
SkiStar’s premises and compensation
for cabin service and cleaning. Income
amounted to MSEK 59 (57) during the
financial year.
Other income
Other income includes income from
events, revenue from the sale of
advertisements, newsstands, sales of
Ski*Direct cards (electronic ski passes),
purchased flight capacity, etc. This
income amounted to MSEK 72 (49)
during the financial year. Of the increase
of MSEK 23, a total of MSEK
7 can be attributed to income from
charter flights to Östersund from
Copenhagen, Helsinki and Stockholm.
Capital gains
During the 2004/05 financial year
SkiStar sold tenant-owner’s rights,
apartments and development land,
primarily in Sälen. These sales have
resulted in capital gains of MSEK 45
(25). A more detailed description of
capital gains can be found on page 34
where the Business Area Properties is
presented.
Investments
Investments during the 2004/05
financial year amounted 8% to MSEK 228.
Investments are divided into investments
in fixed assets, comprised of investments
in the Group’s skiing facilities and
resorts, and structural investments,
comprised of investments in real-estate
companies, buildings and land for
development and future sale.Investments
in fixed assets amounted to MSEK 155
and were primarily comprised of a new
high-speed chairlift and a new children’s
area in Hemsedal, as well as increasing
snow-making capacity at all
destinations. Gross structural
investments and acquisitions before
sales amounted to MSEK 171 and the
net amount after sales total MSEK 73.
Structural investments referred to the
acquisition of Hotel Renen in Åre,
35 tenant-owner’s rights and
145 apartments in Sälen, the
reconstruction and extension of Sälens
Högfjällhotell and participation in the
new share issue in the real estate
company, Åre Centrum AB. During the
period, assets were sold for MSEK 142
with capital gains totalling MSEK 45.
Amongst other properties,
50 apartments and 35 tenant-owner’s
rights in Sälen and 28 apartments in
Hemsedal were sold, and two small
areas of land were sold to external
parties for the construction of cabins
and apartments.
Associated companies
During the year, SkiStar has had three
associated companies in operation, all
of which are located in Sälen. Two
associated companies are jointly
operated by Lima and Transtrands
Jordägande Socknemän, which, for
approximately two years, have invested
in cabins in Hundfjället and Lindvallen
in Sälen. SkiStar owns 45% of these
companies and SkiStar’s original
capital contribution amounted to
MSEK 10. The companies made a
combined profit of MSEK 1.6 during
the 2004/05 financial year. In addition,
SkiStar owned 48% of Tandådalens
Fjällhotell Service AB in Sälen during
the financial year, and the original
capital contribution was MSEK 2.
SkiStar acquired the remaining shares
in this company on 1 September 2005.
Tandådalens Fjällhotell Service AB
incurred a loss of MSEK 3.0 during the
2004/05 financial year.
Occupancy rate of accommodation,
%
Ski rental sales per ski day, SEK
Net sales in ski school per ski
day, SEK
24 25

Sälen
Sälen, which primarily focuses on families with children, is the most popular alpine destination
in Scandinavia, with a high occupancy rate and a large number of returning guests.
Sälen, situated in northwest Dalarna
approximately 430 km from Stockholm
and approximately 460 km from
Gothenburg, consists of four resorts –
Lindvallen, Högfjället, Tandådalen and
Hundfjället. Sälen is SkiStar’s
largest destination and the most popular
winter destination in Scandinavia.
Families with children are the resort’s
primary target group and a large
number of guests return frequently.
The four resorts are linked to two large
ski areas – Lindvallen/Högfjället and
Tandådalen/Hundfjället.
Lindvallen’s business concept is to be
“the best mountain holiday for families
with children”, which is the reason
many families choose Lindvallen. The
resort is large and modern, with every
effort having been made to make life
easier for guests. Lindvallen is home to
the Scandinavia’s largest nursery slope
area, with a friendly Snowman at the
top of Sweden’s most frequented skislope,
Gustavbacken, as Sälen’s
landmark.
Operating income and results for Sälen
MSEK
Högfjället offers the classic winter
holiday, good all-round facilities centred
around the famous Högfjällshotellet as
a natural meeting point. The pace is a
1 september - 31 august
2004/05 2003/04
Net sales 472 517
Other income 9 2
Operating costs –320 –341
Depreciation –53 –54
Operating income 108 124
Operating margin, % 22 24
little slower, the ski area slightly smaller
and the atmosphere cosier.
Tandådalen is known as “the pulse of
Sälen”, attracting many families with
teenagers who enjoy skiing and snowboarding.
Tandådalen houses a first
class Dream Park containing one of
Europe’s best half pipes, where several
Facts about Sälen
Number of lifts, 92
Lift capacity, skiers per hour 79,300
Number of slopes, 112
Number of nursery slopes, 9
Longest slope, km 2.1
Total length of prepared pistes, km 81.9
Maximal vertical drop, metres 303
Highest prepared ski area
metres above sea level 860
Total prepared ski area, m² 3,600,000
Slopes with snow systems, m² 66
Area covered by snow systems, m² 1,850,000
Fun parks, adult 5
Fun parks, children 5
World Cup snowboard competitions
have taken place.
Hundfjället offers a variety of skiing
in a genuine winter atmosphere. Both
adults and children can enjoy
themselves at Hundfjället and the
resort’s motto is “The skiing paradise
for old and young”. The Trollskogen
(“Troll Forest”) children’s adventure
park at Hundfjället is home to 400
unique wooden trolls lined along the
1.3 km winding, bumpy forest hillside.
Sales and income
Net sales declined by MSEK 43 to MSEK
472 and operating income decreased by
MSEK 14 to MSEK 108. Income was
negatively affected by fewer public
holidays at Christmas and New Year,
low levels of natural snow fall before the
Swedish school holidays in February, and
the early Easter holiday. Two sporting
goods outlets, which had previously been
operated by the company, were leased to
the sporting goods chain Stadium during
the 2004/05 winter season. These outlets
generated net sales of MSEK 20 during
the previous year. Ski-pass sales declined
by 5% to MSEK 242.
Market
The majority of Sälen’s guests come
from Sweden, mainly from southern and
central Sweden. Danes, comprising over
10% of the total number of guests, also
visit Sälen, making its SkiStar’s most
popular destination for Danish guests.
Almost all guests take their own car to
Sälen, but there are also direct busses
Sälen in figures
2004/05 2003/04
Rented beds, 13 000 12 500
Occupancy rate, % 82 92
Ski school students, 43 200 45 800
Ski rental/equipment, 15 900 15 300
Ski days, 1 497 000 1 606 000
from Stockholm, Gothenburg and
Malmö.
New features
There are almost 200 new beds close
to the ski lifts for the winter season. In
addition, the consolidation of Sälen’s
core concept is being continued via
the further development of products
for children at both Hundfjället and
Lindvallen. At Lindvallen an entirely
new activity area for the whole family,
Snögubbedalen (“the Snowman Valley”)
is being completed for the winter and in
the Trollskogen adventure park is being
continued.
Development opportunities
Sälen has had a high bed occupancy rate
for many years. Two of Sälen’s
competitive edges are its relative
proximity to Sweden’s largest towns and
city and a well-established brand. On
the basis of increased sales and
marketing activities outside Sweden,
there are excellent opportunities to
further increase the percentage of
Danish and Norwegian guests at Sälen.
Hundfjället the further development of
Ski days
Occupancy rate
Division of income/costs, MSEK
Operating income 2004/05 2003/04
Alpine skiing/Lift 242 256
Accommodation 78 84
Ski rental 52 55
Ski school/Activities 22 24
Sports outlets 15 36
Properties 36 35
Other 36 29
Total operating income 481 519
Operating expenses
Goods –30 –43
Personnel –135 –142
Other –155 –156
Total operating expenses –320 –341
26
27

Vemdalen
Vemdalen is the destination that many holidaymakers return to year after year, to enjoy the
friendly atmosphere and the one of the best snowfall records in Sweden.
Resorts and focus
The destination of Vemdalen, which
is situated on the border between the
county of Härjedalen and the county of
Jämtland, approximately 480 km northwest
of Stockholm, is comprised of
four resorts: Vemdalsskalet, Björnrike,
Klövsjö and Storhogna. In addition to a
variety of skiing, Vemdalsskalet, which
is the largest resort, also has the largest
selection of entertainment and activities,
with lively après ski and a tantalising
choice of restaurants at the foot of the
ski area.
Björnrike is the choice of families with
children. Good ski slopes combined
with accommodation close to the ski
lifts and good service facilities make
mountain holidays much easier.
Klövsjö is a traditional mountain retreat
that also offers challenging skiing for
the experienced skier.
Operating income and results for Vemdalen
MSEK
Storhogna offer you the option of combining
skiing with other activities and
experiences. Here, for example, you will
find Sweden’s first mountain spa.
1 September - 31 August
2004/05 2003/04
Net sales 70 74
Other income 1 0
Operating expenses –52 –51
Depreciation –8 –7
Operating income 11 16
Operating margin, % 15 22
Nets sales and income
Net sales declined MSEK 4 to MSEK
70 and operating income decreased by
MSEK 5 to MSEK 11. Results were
affected negatively by fewer public
holidays at Christmas and New Year as
well as the early Easter holiday. Sales of
ski passes decreased by 3% to
MSEK 54.
Facts about Vemdalen
Number of lifts, 30
Lift capacity, skiers per hour 29 400
Number of slopes, 53
Number of nursery slopes, 4
Longest slope, km 2
Total length of prepared pistes, km 51,8
Maximum vertical drop, metres 440
Highest prepared ski area,
metres above sea level 946
Total prepared ski area, m² 1 380 000
Area covered by snow, m² 950 000
Illuminated slopes, 4
Fun parks, 3
Market
Almost all of Vemdalen’s visitors come
from Sweden, with the Mälardalen/
Stockholm region and the coast of
Norrland as the most important
catchment areas. The primary target
group is families with children. The vast
majority of guests travel to Vemdalen
in their own cars. A small number of
guests travel by the direct buses from
Stockholm, Sundsvall, Uppsala and
Gävle or take flights from London,
Copenhagen, Helsinki, Stockholm,
Gothenburg and Malmö via Östersund
airport.
New features 2005/06
One of the largest investments in
Vemdalen for many years will be
unveiled on 27 December 2005. The
investment, encompassing four new
slopes with snow systems and a highspeed
6-seat chairlift at Vemdalsskalet,
will help create even better skiing
experiences for our guests. After these
new investments are opened, our guests
will be able to enjoy a skiing area that
has increased by 30%.
Vemdalen in figures
2004/05 2003/04
Rented beds 3 240 2 700
Occupancy rate, % 71 86
Ski school students, 7 450 8 500
Ski days, 413 000 431 000
Development opportunities
The number of skiers visiting Vemdalen
has been steadily rising in recent years.
However, a substantial increase in the
number of rented beds for the 2004/05
season has resulted in the occupancy
rate decreasing by 15 percentage points
the Swedish market will be enhanced
after the opening of the winter’s new
investments. The increase in charter
flights from Copenhagen to Östersund
for transfer to Vemdalen also provides
greater opportunities for foreign guests
to visit Vemdalen.
to 71%. Vemdalen’s attractiveness on
Ski days
Occupancy rate
Division of operating income and costs, MSEK
Operating income 2004/05 2003/04
Alpine skiing/Lift 54 55
Accommodation 7 9
Ski school/Activities 3 3
Properties 3 3
Other 4 4
Summa operating income 71 74
Operating expenses
Goods –2 –2
Personal –25 –24
Other –25 –25
Total operating expenses –52 –51
28
29

Åre
Copenhagen, Helsinki and Stockholm to
Östersund and Åre have been successful
and for the entire season approximately
7,000 guests made use of the option
to fly. Åre also displayed a substantial
increase in the number of guests during
the summer.
Market
Approximately 80% of Åre’s guests are
from Sweden, the majority of which
come from the Mälardalen/Stockholm
region. The number of foreign guests is
continually increasing. The largest
foreign markets are Norway and
Finland, but through co-operation with
foreign tour operators, guests are also
arriving from Great Britain, Denmark,
Russia and the Baltic States.
occupancy rate of beds in Åre has
continued to be extremely positive.
Åre 2007
SkiStar has a 15% holding in Åre 2007
AB, which is the company arranging the
FIS Alpine World Ski Championships
2007. After the World Championships,
SkiStar has committed to assume the
investments made by Åre 2007 in and
around the skiing area prior to the
World Championships, at an estimated
market value of MSEK 36.
Development opportunities
Åre has good development
opportunities. Åre has very good
infrastructure, with a nearby airport, a
railway line direct to Åre By, and a
motorway through the town. The
increased bed capacity, in combination
with the continued investment in
affordable transport solutions, provide
good opportunities for many more ski
guests to visit Åre in the future. Lift
capacity in the skiing area is also good
and will be able to accommodate an
increase in the number of guests.
Another positive trend is that the
number of foreign guests is increasing.
Greater international interest prior to
and in conjunction with the FIS Alpine
World Ski Championships 2007 should,
therefore, provide opportunities for
consolidating this trend.
Åre is a resort with almost one hundred years’ skiing tradition. The first ski lift, Bergbanan, was
built in 1910 and it was no coincidence that a lift was built here as Åreskutan offers the best
skiing imaginable, both one hundred years ago and today.
The destination of Åre, which is
situated 650 km northwest of
Stockholm, has three resorts: Duved,
Åre By and Åre Björnen. Each resort
has its own profile and target group.
Åre Björnen, the furthest east of the
resorts, is a favourite with children.
But just three lifts away is Åreskutan’s
most challenging skiing, where parents
can satisfy their skiing desires. The fact
that Åre Björnen is so close to advanced
skiing facilities is a major competitive
advantage.
Operating income and results for Åre
MSEK
Duved, situated west of Åre By, also has
a long history. Duved is more relaxed,
with a number of shops and restaurants,
and the skiing is varied and particularly
suitable for families with children who
can already ski.
Åre By is the most well-known resort.
Here you will find fantastic skiing
directly connected to a small town with
a continental flair and a great atmosphere
and long tradition. Åre By also
has a wide selection of restaurants,
activities and entertainment.
1 September - 31 August
2004/05 2003/04
Net sales 265 238
Other income 3 0
Operating expenses –205 –187
Depreciation –31 –31
Operating profit 32 20
Operating margin, % 12 8
Net sales and results
Net sales in Åre increased by MSEK 27
to MSEK 265 and operating income
increased by MSEK 12 to MSEK 32.
Sales of ski passes improved by 6% to
MSEK 153. The number of train tickets
sold to Åre increased from 9,000 in
the 2003/04 season to over 26,000
for the most recent winter season. The
first season with charter flights from
Facts about Åre
Number of lifts, 40
Lift capacity, skiers per hour 47 400
Number of slopes, 102
Longest slope, km 6.5
Total length of prepared pistes, km 100
Maximum vertical drop, metres 890
Highest prepared ski area,
metres above sea level 1 274
Total prepared ski area, m² 4 400 000
Area covered by snow, m² 2 000 000
Half pipes, 1
Dream parks, 3
New features
In order to further reduce the distance
to densely populated cities and towns,
efforts continue to be concentrated on
effective and affordable transport
solutions. The charter flight concept
is being expanded for the winter with
greater capacity from existing departure
cities and by launching the new
departure cities of Gothenburg and
Malmö. Two new slopes in the ski area
with snow-making systems are ready
for the winter, one is in Duved and the
other is the new run for the women’s
downhill race at the 2007 World Ski
Championships. Thanks to the new E14
motorway entering a tunnel and
bypassing the Olympic area, it has been
possible to widen the lower section
of the slope from 30 to 130 meters.
Developments in Åre have led to many
external players investing in hotels and
cabins. As a result, the trend in the
Åre in figures
2004/05 2003/04
Number of beds rented 5 670 5 350
Occupancy rate, % 81 82
Ski school students 13 800 12 500
Rental ski/equipment 5 700 5 200
Ski days 922 000 877 000
Ski days
Occupancy rate
Division of operating income and costs, MSEK
Operating income 2004/05 2003/04
Alpine skiing/Lift 153 147
motorway
Accommodation 34 30
Ski rental 22 23
Ski school/activities 7 7
Sports outlets 9 6
Property 18 16
Other 25 9
Total revenue 268 238
Costs
Goods –21 –14
Personnel –93 –88
Other –91 –85
Total costs –205 –187
30
31

Hemsedal
Hemsedal is often called “the Scandinavian Alps” and it is easy to see why. Not only does
Hemsedal offer fantastic skiing, but the breathtaking scenery of the mountain range reaches
heights of almost 2,000 meters.
Resorts and focus
Hemsedal is situated 230 km northwest
of Oslo and is a complete ski resort,
offering a wide selection for skiers of
all ages. Norway’s largest nursery slope
area can be found right next to
extremely challenging slopes for
advanced skiers. Hemsedal is Norway’s
second largest ski resort after Trysil.
Market
Hemsedal is the SkiStar destination with
the largest percentage of foreign visitors,
approximately 40%. Sweden and
Sales and income for Hemsedal
MSEK
Denmark provide the largest
number of foreign visitors, but many
come from Great Britain, the
Netherlands and Germany thanks
to well-established cooperation with
foreign travel agencies. The Norwegian
skiers are mainly from the Oslo area
and Bergen and travel to Hemsedal by
car. Foreigners either take their cars to
Norway by ferry or travel by coach or
charter flight.
Net sales and income
Sales in Hemsedal increased by
1 September - 31 August
2004/05 2003/04
Net sales 170 163
Operating costs –128 –111
Depreciation –30 –24
Operating profit 12 28
Operating margin, % 7 17
MSEK 7 to MSEK 170 and operating
income decreased by MSEK 16 to
MSEK 12. The average NOK/SEK
exchange rate during the period was
1,124 (1,091)and negatively affected net
sales by MSEK 5 and operating income
by MSEK 1 as compared to the previous
year. New ski rental operations
Facts about Hemsedal
Number of ski lifts 21
Ski lift capacity, skiers per hour 28,500
Number of slopes 48
Longest slope, km 6
Total length prepared slopes, km 43
Maximum vertical drop, m 810
Highest prepared surface,
metres above sea level 1,450
Total prepared surface, m² 1,050,000
Slopes with snow systems, m² 14
Area covered by snow systems, m² 420,000
Half pipes, 2
Illuminated slopes, 9
generated sales of MSEK 7 during
the period. Costs increased due to an
increased number of beds administered
by the company, an expansion of the
children’s ski area and new ski rental
activities.
Ski-pass sales decreased by 5% to
MSEK 96. Income was affected
negatively due to fewer public holidays
at Christmas and New Year, a poor
level of natural snow prior to the school
holidays February and an early Easter
holiday.
New features
Significant investments in the family
market continue with the development
of Norway’s largest nursery slope area,
which was opened last season. In
addition, the snow cannon capacity in
the ski area has been significantly
extended in order to ensure a good
foundation on the slopes during the
entire season, irrespective of the level of
natural snow. Investments in increased
marketing and improved means of
travelling are aimed at increasing
the percentage of Swedish visitors at
Hemsedal. New this winter is the
possibility to travel on a charter train
from Gothenburg. Also, 200 beds in
close proximity to the ski lifts are ready
Hemsedal in figures
2004/05 2003/04
Number of beds rented 4 070 3 700
Occupancy rate, % 72 74
Ski school students 11 000 9 300
Rental ski/equipment 3 300 1 100
Ski days 501 000 520 000
Development opportunities
Thanks to the investments in developing
children’s products in recent years, the
foundations are in place for attracting
more families to Hemsedal. The growth
of new commercial beds continues to be
market investments in Sweden, Denmark
and Finland as well as well-established
cooperation with travel agencies in a
number of foreign markets has created
good conditions for a continued increase
in the number of foreign visitors.
strong, which is an important factor for
continued development. The increase in
Ski days
Occupancy rate
Division of operating income and costs
Revenue 2004/05 2003/04
Alpine skiing/lift 96 102
Accommodation 43 40
Ski rental 17 7
Ski school/activities 5 4
Sports outlets 0 0
Property 3 3
Other 6 7
Total revenue 170 163
Costs
Goods –3 –3
Personnel –60 –50
Other –65 –58
Total costs –128 –111
32
33

Annual report
Business Area Properties
SkiStar AB (publ)
1 September 2004 – 31 August 2005
SkiStar’s recently formed business area, Properties, will generate profits and make resources
available for the development and construction of new, modern tourist accommodation at
SkiStar’s destinations by selling renovated, older properties.
Responsibilities of the business area
The Business Area Properties has been
operational since January 2005. The
business area’s assignments are to:
• Perform an inventory of and classify
SkiStar’s total property holdings,
• Ensure that all construction within
SkiStar is carried out professionally,
uniformly and cost effectively,
• Ensure that long-term plans for
construction and sales exist
• Continually sell older properties in
order to generate profits and make
financial resources available for the
development and construction of
new, modern tourist accommodation
at SkiStar’s destinations,
• Create business opportunities
through acquiring existing
accommodation and development
land.
Structural properties
Implemented business transactions
Investments are divided into two
groups, investments in facilities for the
ongoing maintenance of the alpine
operations, for example, new ski lifts,
snow systems, premises for ski rental,
restaurants etc., and structural
investments comprised of investments in
developing land and housing with the
purpose of creating future business
opportunities. The Business Area
Properties is responsible for structural
investments. During the 2004/05
financial year, structural investments
amounted to MSEK 171. At the same
time, tenant-owner’s rights, apartments
and land were sold for MSEK 142 with
capital gains of MSEK 45. Major
investments that have been carried out
comprise the acquisition of 145 apartments
in Lindvallen, 35 tenant-owner’s
rights at Högfjället, Hotel Renen in
Duved, participations in the new share
issue in Åre Centrum AB, a real-estate
company that invests in properties in
Åre, construction of 14 apartments in
Lindvallen, the renovation and
expansion of Sälens Högfjällhotell,
and the construction of 6 apartments
in Hemsedal. A total of 29 apartments
in Lindvallen, 35 tenant-owners’ rights
and 21 apartments in Högfjället, as well
as 22 apartments in Hemsedal were also
sold.
Existing structural assets
The table shows the percentage of the
company’s assets attributable to
apartments, hotels and development
land. Apartments and areas with
development land are owned at all
destinations, but primarily in Sälen. The
sale of existing apartments and newly
built, modern apartments, takes place at
a pace at which the market permits and
demands.
Capital gains, MSEK
Hotels, cabins and apartments and development land which is owned
Sälen Åre Hemsedal Vemdalen Total
Hotel 1 1 0 0 2
Existing cabins and apartments 330 148 6 0 484
Land holdings, (number of buildable apartment units)
- detailed development plan established 212 12 0 40 264
- detailed development plans in progress 135 0 250 0 385
- planned detailed development plans 270 50 0 0 320
- planned outlined plans 800 0 0 150 950
Total apartments 1 747 210 256 190 2 403
34 35

Administration report
The Board of Directors and Managing
Director of SkiStar AB (publ),
Corporate Identity Number
556093-6949, hereby present the annual
report and consolidated accounts for
the financial year 1 September 2003 –
31 August 2004.
amounting to MSEK 5 and equivalent
to an additional 66,077 B shares when
converted, which provides a 0.3%
dilution of existing shares. Conversion
may take place up until 15 June 2008.
The highest noted share price during the
financial year was SEK 161:50, noted
on 13 July 2005 and the lowest noted
holidays at Christmas and New Year, a
poor level of natural snow in Sälen and
Hemsedal before the school holidays in
February and an early Easter holiday.
Increased activity within the recently
started Business Area Properties has
resulted in capital gains of MSEK 45
(25) from the sale of land, tenant-owner’s
Business name and registered offices
The company’s business name is SkiStar
AB (publ). The company’s registered
offices are in the municipality of
Malung, in the county of Dalarna,
with its head office in Sälen. The postal
address is 780 67 Sälen.
share price was SEK 110:50, noted on
1 September 2004. The share price at
year-end on 31 August 2005 was
SEK 150:00.
Market developments
During the 2004/05 season, ski pass sales
in Sweden decreased by 1.1% to MSEK
rights and apartments, primarily in Sälen.
Net financial income improved, as all
loans were converted so that only shortterm,
fixed interest rates apply.
The change in the NOK/SEK exchange
rate has only had a marginal impact
on income before taxes. New ski rental
operations were conducted in Hemsedal
Focus of the operations
SkiStar owns and operates ski facilities
in alpine destinations in Sälen, Åre and
Vemdalen in Sweden and Hemsedal in
Norway. SkiStar’s vision is to create
memorable winter experiences as the
leading operator of European alpine
skiing destinations.
900 according to the Swedish Ski Lift
Organisation, and in Norway, sales of
ski passes rose by 3% to MNOK 700
according to the Norwegian Ski Lift
Association. The average price increase
was 2.6% in Sweden and 4% in Norway.
Operations
The Group’s net sales during the period
during the winter, under private management.
Sports outlets in Lindvallen
and Hundfjället have been leased to the
sporting goods chain Stadium.
Changes in the NOK/SEK exchange rate
have caused sales to increase by MSEK 5
compared with the previous year. After
adjusting for the previously
mentioned new and leased operations
Ownership structure
SkiStar’s B shares have been listed on
Stockholmsbörsen’s O List since 1994.
As per 31 August 2005, the number
of shareholder’s amounted to 7,454
(5,638). Major shareholders include
Mats Paulsson and family who hold
15.91% of capital and 40.79% of the
votes, Erik Paulsson and family who
hold 14.93% of capital and 10.51% of
the votes, and Investment AB Öresund,
which holds 11.68% of the capital and
8.22% of the votes. A significant change
in holdings amongst major owners
during the financial year was that
Thorvald Sverdrup sold his 542,034 B
shares and SEB Funds has purchased
381,050 B shares.
amounted to MSEK 977 (990), income
before tax to MSEK 182 (177) and
income after tax to MSEK 172 (313).
Earnings per share amounted to 8:83
(16:26). Profits after tax in the previous
year included a large tax rebate, as the
Swedish Tax Agency reassessed parts of
the Group’s income tax returns from
1997 onward. The reassessment took
place based on the fact that income
from ski operations on properties
owned by the company in Sweden is
exempt from income tax. After
adjustments for these one-off effects, net
earnings per share in the previous year
were SEK 8:08.
Net income for the year has been
negatively impacted by fewer public
and exchange rate changes, sales
decreased by MSEK 9 (1%) compared
with the previous year.
Acquisition of Trysil in progress
On 19 May SkiStar submitted an offer
to Trysilfjell BA, the owners of the ski
resort in Trysil, Norway, for acquisition
of the companies which together
conduct alpine skiing activities in Trysil.
Trysilfjell BA accepted SkiStar’s offer on
23 May. The offer entails that SkiStar
offer a cash payment at a maximum
of MNOK 190 or a maximum of
1,672,000 B shares, or, alternatively,
a combination of cash and shares.
Thereafter, the seller informed SkiStar
that the purchase price would be
comprised of a maximum of 60,000 B
shares. These shares will be acquired on
the basis of a repurchase of shares. The
date of taking possession was agreed
as 1 November 2005. The Norwegian
Competition Authority has not, to
date, approved this transaction. It is the
Competition Authority’s opinion
that after the acquisition of Trysil,
SkiStar will have a dominating position
in the operation of alpine ski resorts
in Scandinavia. A final ruling from
the Norwegian Competition Authority
is expected in mid-November 2005,
and therefore the acquisition has been
slightly delayed. If the Competition
Authority’s decision is negative for
SkiStar, the company will lodge an
appeal with a superior body, the
Norwegian Ministry of Modernisation.
In the event of such an appeal, the
acquisition will be further delayed by a
few months.
In 2004, Trysil generated total net sales
of MNOK 230 and reported profits
before tax amounting to MNOK 24.
Trysil is Norway’s largest ski resort with
a market share of 15% of ski passes in
Norway. The company conduct skiing,
ski hire and accommodation agency
activities. Ski school activities are
conducted by one of the associated
companies. Trysil is a high-standard,
modern ski resort. There is ski lift
capacity for 32,400 skiers per hour,
with 22 ski lifts and 5 chairlifts. There
are 64 slopes. The companies administer
3,300 of a total of approximately 8,000
commercial beds in the area. The
occupancy rate for the cabins and
apartments provided on an agency
basis, was 67% in the 2004/05 season.
After the completion of the acquisition,
SkiStar’s market share of ski passes
in Scandinavia will increase from 32%
to 42%. With the acquisition of Trysil,
SkiStar provides a comprehensive
offering in the Nordic markets, with
Hemsedal in Norway and Åre in
Sweden having more advanced profiles,
and Trysil in Norway as well as Sälen
and Vemdalen in Sweden focussing on
families. The acquisition provides
synergies primarily within Marketing,
Sales and IT. If the cash offer is
accepted, the equity ratio in the Group
is expected to decrease from 53% to
44%.
Liquidity, profitability and financial
position
The Group’s liquid funds amounted to
MSEK 389 (154), including un-utilised
bank overdraft facilities. Interest-bearing
net debt decreased by MSEK 30 to
MSEK 721. The equity ratio was
strengthened to 53% (52). Return on
capital employed amounted to 12% (13),
return on equity was 17% (36) and the
operating margin reached 20% (21).
Value added tax
In July 2004, Swedish Administrative
Court of Appeal ruled ski passes shall
be classified as the provision of sports
facilities at a VAT rate of 6%, instead
of being classified as transport via ski
lifts with 12% VAT. The Swedish Tax
Agency appealed against the decision
to the Swedish Supreme Administrative
Court, which granted the Tax Agency
review dispensation. Should the Swedish
Supreme Administrative Court uphold
the Administrative Court of Appeal’s
decision, SkiStar will recover MSEK 180
in VAT paid since 1997, and ski pass
prices at SkiStar’s Swedish destinations
will be reduced in an amount equivalent
to the VAT reduction.
Cash flow
Cash flow from operating activities
before working capital changes for the
period amounted to MSEK 241 (250),
and cash flow after working capital
changes for the period amounted to
MSEK 294 (215). Cash flow for the
financial year after investment activities
was MSEK 70 (28).
Investments, acquisitions and sales
During the financial year, net investments
totalled MSEK 228. Investments are
divided into fixed asset investments,
comprised of investments in the Group’s
ski facilities, and structural investments,
comprised investments in real-estate
companies, land and buildings for
development and future sales.
Investments in facilities amounted
to MSEK 155 and mainly consisted
of a new high-speed chairlift, a new
children’s’ skiing area in Hemsedal and
strengthening of the snow production
capacity at all destinations. Structural
investments and acquisitions amounted
to MSEK 171 and referred to the
Return on capital employed, % Division of sales, % Division of costs, %
The SkiStar share
The number of shares amounts to
19,528,034 of which 912,000 are A
shares with ten votes per share and
18,616,034 are B shares with one vote
per share. In addition, there are
convertible subordinated debentures
Income before tax divided per period, TSEK
2004/05 2003/04 2002/03
September-November –130 622 –125 173 –111 177
December-February 219 305 250 515 222 811
March-May 165 115 150 527 156 715
June-August –72 096 –98 815 –92 433
36
37

acquisitions of Hotel Renen in Åre,
effects in SkiStar’s equity since the acqui-
Paulsson (Chairman), Mats Qviberg,
accounts and year-end report are
equivalent to 66,077 B shares, can be
to increase from 400,000 during autumn
35 tenant-owner’s rights and 145
sition of Hemsedal Ski Center in April
Mats Paulsson, Olle Larsson, Eva-Karin
discussed. The auditors report their
converted up until 15 June 2008. The
2004, to 3.6 million during autumn
apartments in Sälen, the renovation and
2000 amounted to MSEK 14 per 31
Sjödin Dahl, Per-Uno Sandberg, and
observations from their examination and
company’s principle owners have issued
2005. Investments in inexpensive and
expansion of Sälens Högfjällshotell, as
August 2005. In accordance with the
Mats Årjes (CEO). All of these members
assessment of the company’s internal
sell options meaning that individuals
efficient means of transport will continue
well as participations in the new share
Group’s currency policy, the foreign
are elected for one year. Employee
control.
within Group management can sell
during the forthcoming winter season.
issue in the real-estate company Åre
Centrum AB. During the period, assets
amounting to MSEK 142 were sold, with
(non-Swedish) operations are not hedged.
Parent Company
representatives from the Swedish Hotel
and Restaurant Workers Union were
Bengt Larsson for the entire period and
Bonus system, debentures and options
During the year, Group management,
61,224 B shares for SEK 89 per share to
the principal owners in July 2008, and
the CEO can sell 114,452 B shares for
Trains, flights, car rentals and busses can
be booked via SkiStar’s sales channels.
The snow systems of all destinations will
capital gains totalling MSEK 45. Among
The Parent Company’s net sales
Björn Håkansson until 31 March 2005
which consists of twelve members,
SEK 130 per share on 31 July 2007.
be strengthened for the next winter
other things, 50 apartments were sold
and 35 tenant-owner’s rights in Sälen,
amounted to MSEK 797 (819) and income
after net financial income amounted
and for the period thereafter, Staffan
Berglund. The Board of Directors held
participated in a bonus system based on
the information for the company’s return
Swedish Code of Corporate Governance
season and a completely new ski area
with new pistes and a high-speed chairlift
28 apartments in Hemsedal as well as
to MSEK 129 (84).
seven meetings during the year for which
on equity, operating margin, growth
SkiStar is not, at the current time,
is being developed in Vemdalen.
a few smaller pieces of land to external
interested parties for the construction of
Dividend proposal
minutes were prepared. At least one
meeting of the Board of Directors per
in net earnings per share and organic
growth. Capital gains are excluded
covered by the regulations stipulated
in the new Swedish Code of Corporate
At the beginning of October, the booking
situation prior to the 2005/06 winter
cabins and apartments.
The Board of Directors and CEO
year must take place at one of SkiStar’s
from the bonus system. Due to the weak
Governance. Despite this, SkiStar has
season showed a 4% improvement in
Personnel
propose that dividends be distributed
at SEK 6:00 (5:00) per share. The total
destinations in order that the Board of
Directors may gain satisfactory insight
results of the alpine ski operations’, no
bonus has been issued to the Group
followed many of the recommendations
stated in the Code for a long period of
volume compared with the same point in
time the previous year. The number
The average number of employees was
amount of proposed dividends is MSEK
into the company’s operations. The
management for the 2004/05 financial
time. In 2005/06, the company will
of rental accommodation units has
871, which is a decrease of 4 compared
117 (97), equivalent to 68% of income
issues addressed at the Board meetings
year.
evaluate areas in which SkiStar does not
increased by 2% since the previous
with the previous year.
after tax. The date of 15 December 2005
included the offer for and acquisition of
During 2003, a convertible debenture
completely follow the Code’s
winter season.
Environmental impact
SkiStar’s operations have a certain
was proposed as the date for the Swedish
shareholders to receive dividends. The
dividends will be paid via VPC (Swedish
Norway’s largest ski centre, the Trysil
ski resort, the investment and profit
budget, financial statements, the year-
loan was issued for a total of MSEK
25, and the company’s employees subscribed
to these debentures for a total
recommendations.
Prior to 2005/06
Proposed share split
At the Annual General Meeting, SkiStar’s
environmental impact. The company is
Central Securities Depository & Clearing
end report and tax issues. The Board of
amount of MSEK 14 in 2003 and
Through increased coordination of the
Board of Directors proposed a 2:1 split
working actively to reduce the
Organisation) on 20 December 2005.
Directors’ formal work plan contains
MSEK 11 in 2004. In total, debentures
Group’s market activities, resources have
of the SkiStar share, meaning that two
environmental impact of its operations.
A joint environmental management
system is the basis of the environmental
Shareholders
Annual General Meeting of shareholders
rules and regulations for the division of
responsibilities and duties between the
Board of Directors and CEO and ins-
equivalent to 248,388 B shares were
converted to shares at a rate of SEK
79:50. The remaining debentures,
been made available allowing the number
of winter catalogues being distributed in
Sweden, Norway, Denmark and Finland
new shares are received for every old
share.
work. The Swedish insurance company
A total of 244 shareholders entitled to
tructions for financial reporting. The
Folksam annually assesses the impact on
the climate of Swedish listed companies
by producing a climate index. SkiStar has
received five stars out of five for its work
vote were present at the Annual General
Meeting held on 15 December 2004
at Berns in Stockholm. At the meeting,
the shareholders elected the members of
formal work place is adopted annually
at the Board meeting following election.
In 2004/05 TSEK 135 was paid to the
Chairman of the Board and five other
Operating margin, % Return on equity, % Equity ratio, %
%
40
with climate issues and last year, was
voted the best company within the
the Board of Directors, resolved upon
dividends and authorised the Board of
Board members, who are not employed
in the company, in the amount of TSEK
30
service sector in Sweden.
Exchange rate impact
SkiStar conducts operations in Norway,
Directors to decide upon the buy-back
and sale of the company’s own shares.
Nomination Committee
105 each. A total of TSEK 660 was paid
during the 2004/05 financial year. The
chairman of the Board has also submitted
proposals for terms of remuneration
20
10
and changes in the NOK/SEK exchange
rate have an impact upon SkiStar’s
results and financial position. The
average exchange rate was SEK 1.09
The company’s Nomination Committee
is appointed by the Board of Directors
annually at a Board meeting following
election. The Nomination Committee
to the CEO which were subsequently
decided upon by the Board of Directors.
Audit and control
0
00/01
01/02
02/03
03/04
04/05
Kurva, Avkastning på eget kapital, %
during the 2003/04 financial year, and
SEK 1.12 during 2004/05. The changes
in the exchange rate affected income for
submits proposals for the election of
members of the Board, accounting firm
and proposals for remuneration to the
At the Annual General Meeting of shareholders
held on 9 December 2003,
KPMG were elected auditors of SkiStar
Appropriation of profits
the financial year by MSEK 5 and inco-
company’s Board of Directors. During
for a period of four years. The audit is
me before tax by MSEK 1, compared
with the previous year. The balance sheet
the year, the Nomination Committee
was comprised of Erik Paulsson, Mats
led by Authorised Public Accountant,
Carl Lindgren. Those control issues
Proposed appropriation of profits
for the Norwegian operations was
consolidated on 31 August 2005 at an
Qviberg, Mats Paulsson and Knekt Mats
Olofsson.
which are the responsibility of the Board
of Directors are to be addressed by the
Group
The Group’s non-restricted equity according to the consolidated balance sheet amounts to TSEK 791 073.
exchange rate of SEK 1.18 compared
with SEK 1.09 on 31 August 2004.
During the financial year, the currency
effects in SkiStar’s equity increased by
MSEK 11. The accumulated currency
The work of the Board of Directors
Since the Annual General Meeting held
on 15 December 2004, the Board of
Directors has been comprised of Erik
Board in their entirety. In order to ensure
that the Board of Directors receives
the requisite information, the Auditor
in Charge attends, in person, the Board
meeting at which the Group’s annual
Profits in the amount of TSEK 678 454 are at the disposal of the Annual General Meeting.
The Board of Directors and the CEO propose that profits brought forward be appropriated as follows:
dividends to shareholders, SEK 6:00 per share
to be carried forward
117 168 204,00 SEK
561 286 151,50 SEK
678 454 355,50 SEK
38 39

Five-year summary
Income Statement
2004/05 2003/04 2002/03 2001/02 2000/01
Sales and income
Net sales, MSEK 977 990 959 886 806
Operating income, MSEK 1 035 1 018 989 899 807
Income before depreciation/amortisation, MSEK 330 327 326 297 231
Income before tax, MSEK 182 177 176 139 79
Income after tax, MSEK 172 313 122 97 55
Cash flow before working capital changes, MSEK 241 250 278 238 168
Profitability
Return on capital employed, % 12 13 15 13 9
Return on equity, % 17 36 17 15 9
Return on total assets, % 11 12 13 11 8
Gross margin, % 32 32 33 33 29
Operating margin, % 20 21 22 21 16
Net margin, % 18 17 18 16 10
Net investments, MSEK 228 211 94 134 157
Financial position
Balance sheet total, MSEK 2 038 1 896 1 670 1 744 1 696
Equity, MSEK 1 075 985 735 682 614
Equity ratio, % 53 52 44 39 36
Debt/equity ratio, times 0,7 0,8 1,0 1,3 1,4
Interest coverage ratio, times 6,6 5,8 5,4 3,7 2,6
Liquidity
Current ratio, % 403 165 120 147 119
Quick ratio, % 391 153 105 134 104
Personnel
Average number of employees 871 875 843 813 862
Net sales per employee, TSEK 1 122 1 131 1 138 1 090 935
TSEK
Operating income
Note
Group
Parent Company
1 September 2004 1 September 2003 1 September 2004 1 September 2003
-31 August 2005 -31 August 2004 -31 August 2005 -31 August 2004
Net sales 977 014 989 946 797 318 819 355
Own work capitalised 4 3 110 1 556 3 110 1 556
Shares in associated companies’ income 20 4 645 1 136 – –
Other operating income 5 50 722 25 195 49 616 25 502
Operating expenses
2,3 1 035 491 1 017 833 850 044 846 413
Goods for resale –56 238 –61 384 –52 758 –58 211
Other external expenses 6,7 –336 433 –324 028 –284 995 –270 382
Personnel costs 8 –312 479 –305 332 –256 803 –257 881
Depreciation and write-downs of tangible and
amortisation and write-downs of intangible
fixed assets 9 –122 516 –116 375 –86 877 –85 744
Operating income 207 825 210 714 168 611 174 195
Income after financial items
Income from securities accounted for as fixed
assets –2 – – –
Income from shares in Group companies 10 – – –29 872 –66 778
Interest income, external 6 272 3 581 5 937 2 967
Interest income, Group companies – – 1 521 1 994
Interest expenses, external –32 393 –37 242 –17 348 –28 022
Interest expenses, Group companies – – – –203
Income after financial items 181 702 177 053 128 849 84 153
Minority shares in net income for the year –29 –111 – –
Appropriations 11 – – 895 65 175
Income before tax 181 673 176 942 129 744 149 328
Tax on income for the year 12 –9 711 136 541 –34 302 118 582
Net income for the year 171 962 313 483 95 442 267 910
Definitions
Income per share
Income per share before dilution, SEK 8:83 16:26
Earnings per share
Net income for the year divided by the
average number of shares.
Earnings per share after full conversion
Net income for the year adjusted for interest
expenses after taxes which were accrued on
convertible debentures divided by the number
of shares after full conversion of subscribed
convertible debentures.
Cash flow
Cash flow before working capital changes.
Cash flow per share
Cash flow divided by the average number of shares.
Price/earnings
Share capital as per date of the end of accounting
period divided by net earnings per share after tax
Rate/Cash flow
Share capital as per 31 August divided by cash
flow per share.
Rate/equity
Share capital divided by equity per share.
Return
Dividends divided by share price.
Equity ratio
Equity as a percentage of balance sheet total.
Debt/equity ratio
Interest-bearing liabilities as a percentage of
equity.
Interest coverage ratio
Income after net financial income plus financial
expenses divided by financial expenses.
Return on capital employed
Income after net financial income plus financial
expenses as a percentage of average capital
employed. Capital employed is defined as the
value of assets deducted by non interestbearing
liabilities.
Return on equity
Income after tax as a percentage of average
equity.
Return on total assets
Income after net financial income plus financial
expenses as a percentage of average balance
sheet total.
Gross margin
Operating income before depreciation/
amortisation as a percentage of net sales.
Operating margin
Operating income after depreciation/
amortisation as a percentage of net sales.
Net margin
Income before tax as a percentage of net sales.
Current ratio
Current assets including granted, but unutilised
bank overdraft facilities as a percentage of
current liabilities.
Quick ratio
Current assets including granted, but
unutilised bank overdraft facilities, with
deduction for inventories, as a percentage of
current liabilities.
Income per share after dilution, SEK 8:78 16:09
Average number of shares 19 473 464 19 279 646
Average number of shares after dilution 19 594 111 19 487 729
40 41

Balance Sheet
Balance Sheet cont.
Group
Parent Company
TSEK Note 2005-08-31 2004-08-31 2005-08-31 2004-08-31
ASSETS
Fixed assets
Intangible fixed assets
Capitalised expenditure for computer software 13 9 940 9 104 9 940 9 104
Rental rights and similar rights 14 27 992 5 434 4 045 3 907
Goodwill 15 12 693 17 569 2 888 2 377
Tangible fixed assets
50 625 32 107 16 873 15 388
Buildings, land and land improvements 16 1 016 359 1 017 718 795 479 722 911
Machinery, equipment and plant 17 546 365 511 325 358 366 370 856
Constructions in progress 18 103 836 41 931 92 753 41 931
Financial fixed assets
1 666 560 1 570 974 1 246 598 1 135 698
Participations in Group companies 19 – – 285 226 324 550
Participations in associated companies 20 19 153 15 298 12 284 12 364
Other participations and investments
held as fixed assets 21 54 952 41 230 53 937 39 691
Deferred tax 22 31 269 35 209 22 872 59 447
Other long-term receivables 23 12 607 12 868 12 607 12 868
117 981 104 605 386 926 448 920
Total fixed assets 1 835 166 1 707 686 1 650 397 1 600 006
Current assets
Inventories, etc.
Goods for resale 22 850 24 669 20 990 23 762
Current receivables
22 850 24 669 20 990 23 762
Accounts receivable - trade 15 653 18 074 12 134 13 621
Accounts receivable, associated companies 70 265 70 265
Income taxes recoverable 11 868 – 4 880 14 909
Other current receivables 117 835 109 314 62 949 101 771
Prepaid expenses and accrued income 24 15 541 21 844 15 263 18 284
160 967 149 497 95 296 148 850
Cash and bank balances 19 111 13 985 1 774 2 707
Total current assets 202 928 188 151 118 060 175 319
TOTAL ASSETS 2 038 094 1 895 837 1 768 457 1 775 325
Group
Parent Company
TSEK Note 31 Aug 2005 31 Aug 2004 31 Aug 2005 31 Aug 2004
EQUITY AND LIABILITIES
Equity 25
Restricted equity
Share capital 19 516 19 279 19 516 19 279
New share issue under registration 972 14 593 972 14 593
Restricted reserves 263 810 292 144 23 847 5 310
284 298 326 016 44 335 39 182
Non-restricted equity
Non-restricted reserves 619 111 345 927 583 012 368 135
Net income for the year 171 962 313 483 95 442 267 910
791 073 659 410 678 454 636 045
1 075 371 985 426 722 789 675 227
Untaxed reserves 26 – – 285 407 276 708
Minority interests 539 467 – –
Provisions
Provision for pensions 27 5 012 2 295 919 965
5 012 2 295 919 965
Long-term liabilities
Long-term interest-bearing liabilities
Subordinated debenture 28 5 254 10 089 5 254 10 089
Liabilities to credit institutions 29 765 414 698 907 570 254 614 680
770 668 708 996 575 508 624 769
Long-term, non-interest bearing liabilities
Liabilities to Group companies 30 – – 37 377 59 410
– – 37 377 59 410
Current liabilities
Liabilities to credit institutions 29 17 872 62 317 8 400 26 380
Accounts payable - trade 35 546 33 878 27 545 28 255
Accounts payable, associated companies 11 719 12 877 11 719 12 877
Income tax liabilities 9 957 8 668 – –
Other liabilities 45 689 20 334 42 717 19 969
Accrued expenses and deferred income 31 65 721 60 579 56 076 50 765
186 504 198 653 146 457 138 246
TOTAL EQUITY AND LIABILITIES 2 038 094 1 895 837 1 768 457 1 775 325
MEMORANDUM ITEMS
Pledged assets 32 1 065 070 1 129 159 720 023 951 175
Contingent liabilities 32 74 981 82 545 66 981 82 545
42 43

Change in equity
Cash Flow Statement
TSEK
Group
Share capital
New share issue
under registration
Restricted
reserves
Non-restricted
equity
Closing balance according to balance sheet,
31 August 2003 19 279 207 376 508 434
Adjustments between non-restricted
and restricted equity 83 402 –83 402
Dividends –77 119
New share issue, un-registered 14 593
Convertible debenture loan issued 1 366
Translation differences –1 986
Net income for the year 313 483
Equity as per 31 August 2004 19 279 14 593 292 144 659 410 985 426
Change in accounting principles –1 280
19 279 14 593 292 144 658 130
Adjustments between non-restricted
and restricted equity –48 377 48 377
Dividends –97 316
New share issue, non-registered 972
Conversion of convertible 237 –14 593 18 537
Convertible debenture loan issued 136
Translation differences 1 370 9 920
Net income for the year 171 962
Equity as at 31 August 2005 19 516 972 263 810 791 073 1 075 371
Share capital as per 31 August 2005 consisted of 19,515,800 shares á nominal value SEK 1 per share. As per 31 August 2005, the debentures of MSEK 1 and the corresponding 12,234 B shares
had been registered for conversion, implying that TSEK 12 would be provided to share capital and that the share premium reserve would increase by TSEK 960 during September 2005.
The Board of Directors and CEO propose that dividends for the 2004/05 financial year be distributed at SEK 6:00 (5:00) per share. Based on the number of shares as per 31 August 2005, and
non-registered shares applicable to debentures held by employees, the total amount of the dividend is SEK 117,168.
TSEK
Parent Company
Share capital
New share issue
under registration
Restricted
reserves
Non-restricted
equity
Closing balance according to balance sheet,
31 August 2003 19 279 5 310 384 048
New share issue, non-registered 14 593
Profit attributable to merger 59 343
Group contributions 2 588
Tax effects of Group contributions –725
TSEK Group Parent Company
Operating activities
1 Sep 2004
-31 Aug 2005
1 Sep 2003
-31 Aug 2004
1 Sep 2004
-31 Aug 2005
1 Sep 2003
-31 Aug 2004
Income after financial items 181 702 177 053 128 849 84 153
Adjustment for non-cash items 3) 74 139 90 991 73 411 127 020
255 841 268 044 202 260 211 173
Tax paid –15 270 –18 167 11 814 –10 234
Cash flow from operating activities before
working capital changes 240 571 249 877 214 074 200 939
Working capital changes
Change in inventories 1 819 617 2 772 1 399
Change in operating receivables 20 960 –39 990 86 870 –35 190
Change in operating liabilities 30 879 4 070 26 163 15 358
Cash flow from operating activities 294 229 214 574 329 879 182 506
Investing activities
Acquisition of subsidiaries 1) –69 045 –11 916 – –
Investments in intangible, tangible and
financial fixed assets –356 688 –193 974 –209 773 –225 115
Fixed assets sold 2) 201 420 19 775 60 262 7 517
Cash flow from investing activities –224 313 –186 115 –149 511 –217 598
Financing activities
Acquisition of subsidiaries 1) 70 986 – – –
Borrowings – 74 673 – 135 324
Repayment of debt –38 460 –21 354 –83 985 –21 354
Dividends paid –97 316 –77 120 –97 316 –77 120
Cash flow from financing activities –64 790 –23 801 –181 301 36 850
Cash flow for the year 5 126 4 658 –933 1 758
Liquid funds at beginning of the year 13 985 9 327 2 707 949
Liquid funds at year-end 19 111 13 985 1 774 2 707
Unutilised credits 370 303 139 984 307 937 139 984
Liquid funds and unutilised credits 389 414 153 969 309 711 142 691
Dividends –77 119
Net income for the year 267 910
Equity as per 31 August 2004 19 279 14 593 5 310 636 045 675 227
Dividends –97 316
New share issue, non-registered 972
Conversion of convertible debentures 237 –14 593 18 537
Profit attributable to merger 43 448
Group contributions 1 160
Tax effects of Group contributions –325
Net income for the year 95 442
Equity as per 31 August 2005 19 516 972 23 847 678 454 722 789
Restricted reserves are comprised of statutory reserves in the amount of TSEK 3,857 and the share premium reserve in the amount of TSEK 19,990
44
45

Cash Flow Statement cont.
TSEK Group Parent Company
Supplementary information
1) Acquisition of subsidiaries
Notes to the financial statements
Accounting principles
SkiStar’s annual report has been
prepared in accordance with the
Swedish Annual Accounts Act and
follows the recommendations and
provisions of the Swedish Financial
Accounting Standards Council and the
Emerging Issues Task Force. From
1 September 2004, RR 29 Employee
Benefits will be applied. The application
of this recommendation has not had
any significant effect on the company’s
results or financial position. In general,
the accounting principles are unchanged
compared to the previous annual
financial statements.
Consolidated accounts
The scope of the financial statements
The Group’s annual financial statements
include the financial statements for the
Parent Company and all subsidiaries as
defined in the Swedish Annual Accounts
Act.
1 Sep 2004
-31 Aug 2005
Acquisition accounting
The consolidated accounts have been
prepared in accordance with the
recommendation on consolidated
financial statements, RR 1:00, issued
by the Swedish Financial Accounting
Standards Council, and by applying the
acquisition accounting method. The
amount of equity in the acquired
subsidiaries has been determined on the
basis of a fair value valuation of the
assets and liabilities of the companies at
the point in time of acquisition. For
those cases in which the fair value of
assets and liabilities results in a
1 Sep 2003
-31 Aug 2004
significantly different value than book
value, the fair value shall comprise the
1 Sep 2004
-31 Aug 2005
1 Sep 2003
-31 Aug 2004
Tangible fixed assets –68 845 –11 794 – –
Intangible fixed assets – – – –
Deferred taxes including accrued expenses – – – –
Current receivables –2 341 –122 – –
Liabilities 70 986 – – –
Cash and bank balances – – – –
Purchase price paid –200 –11 916 – –
Liquid funds in acquired companies – – – –
Effect on the Group’s liquid funds –200 –11 916 – –
2) Fixed assets sold
Machinery and equipment 56 648 – 49 197 –
Buildings, tenant-owner’s rights and land 142 431 19 775 10 731 7 517
Other 2 341 – 334 –
Total 201 420 19 775 60 262 7 517
3) Adjustment for non-cash items
Provisions 2 717 – –46 –
Capital gains –51 094 –25 384 –43 292 –25 502
Write-down of subsidiaries – – 29 872 66 778
Reported depreciation/amortisation 122 516 116 375 86 877 85 744
Total adjustment 74 139 90 991 73 411 127 020
1) Acquired subsidiaries refer to Vintertorget in Sälen KB, for 2004/05, and Fastica Lindvallen AB, for 2003/04.
Group’s acquisition cost. The difference
between the acquisition cost of the subsidiaries’
shares and the value of equity
calculated in conjunction with the
acquisition analysis is reported as goodwill
on consolidation. Acquired companies
are included in the Group from the
date of acquisition and the companies
sold are included in the Group up to and
including the date of sale.
Translation of the accounts of foreign
subsidiaries
SkiStar’s foreign (non-Swedish)
operations are classified as autonomous,
as these operations are conducted with
a high degree of independence.The
translation of foreign companies’
income statements and balance sheets is
based on the current method. This
implies that assets and liabilities are
translated at the closing rate of exchange
and that all items in the income
statements are translated at the average
exchange rate for the period.
Translation differences are not reported
in the income statement, but are
reported directly against the Group’s
equity. In order to reduce foreign exchange
risk, assets in foreign
subsidiaries are only valued in local
currency.
Associated companies
The term ”associated companies” refers
to companies in which SkiStar has a
long-term shareholding amounting to a
minimum of 20-50% of the number of
votes or in which SkiStar exercises
significant influence. Reporting of the
associated companies takes place
according to the equity method. Shares
in profits from associated companies are
reported in the consolidated income
statement on a separate line under
“Operating income” and the Group’s
portion of the associated companies’
taxes is reported in the item “Tax
income for the year”. The shares in
profits are calculated based on SkiStar’s
participation in the equity of the
respective associated companies. Shares
in associated companies are reported in
the consolidated balance sheet as a
separate item under the heading
“Financial fixed assets”. The carrying
value of the shareholding is reported in
relation to SkiStar’s share of the
respective companies’ profit after
tax, reduced by dividends received.
Undistributed profits in associated
companies are reported under “Equity”
in the item “Restricted reserves”.
Minority shares
Minority shares in the Group’s net
profit are reported in the consolidated
income statement. The minority share
of the equity of subsidiaries is reported
as a separate item in the balance sheet.
This item also includes the share of
equity of untaxed reserves in these
subsidiaries.
Segment reporting
The primary basis for the classification
of the Group’s segments is geographical,
based on the different destinations.
The secondary segment comprises the
Group’s business segments. The Group’s
internal reporting has been established
with a focus on the follow-up of
profitability for the respective
destinations.
Group information
Of the Parent Company’s net sales,
TSEK 6,324 (3,883) refer to sales to
subsidiaries. Of the Parent Company’s
expenses, TSEK 8,594 (938) refer to
purchases from subsidiaries.
Related parties
Mats Paulsson and Erik Paulsson have
controlling influence over the Group.
These two individuals have significant
ownership interests in Peab and
Wihlborgs. During the 2004/05
financial year, the Group purchased
goods and services from Peab for TSEK
63,288 (42,448) and sold goods and
services to Peab for TSEK 817 (954).
Services were purchased from Fabege/
Wihlborgs for TSEK 1,094 (592). As
per 31 August 2005, the Group had
accounts payable to Peab in a total
amount of TSEK 11,719 (12,747) and
to Wihlborgs in a total amount of
TSEK 0 (130). The Group also had
accounts receivables from Peab in an
amount of TSEK 70 (265).
Valuation principles
Fixed assets, long-term liabilities and
provisions primarily consist of amounts
that are expected to be recovered or
paid later than twelve months from
balance sheet date.
Revenue recognition
The Group generates its income primarily
from the sale of ski passes, agency
commission for the hire of cabins and
apartments, hiring of ski equipment and
from ski school activities.
Receivables and liabilities in foreign
currencies
Receivables and liabilities in foreign
currencies in the Group’s accounts are
reported at the closing rate of exchange.
Gains and losses arising from operating
receivables and liabilities are reported at
net value and are charged to
operating income. SkiStar’s currency
exposure from foreign subsidiaries is
not hedged, in accordance with
established policy.
Inventories and accounts receivable
Inventories primarily consist of ski
equipment for hire, including accessories,
and a simple line of ready-to-wear
clothing for sale at the Group’s ski
rental locations. Inventories are valued
according to the first-in, first-out
principle at the lower of either
acquisition cost or net realisable value.
Bad debts are entered in the amounts
that, on the basis of individual
assessment, are expected to be paid.
Tangible fixed assets
Tangible fixed assets are reported as
assets in the balance sheet when, on the
basis of the information available, it is
likely that the future economic benefit
associated with their acquisition will
accrue to the Group and when the
assets’ acquisition cost can be calculated
in a reliable manner. Tangible fixed
assets are reported at acquisition cost
after deductions for accumulated
depreciation according to plan. The
following periods of depreciation are
applied:
Lifts and parts
of the snow system 5.00 %
Other machinery
and equipment 10.00-30.00 %
Buildings 2.50-5.00 %
Land improvements 3.75-5.00 %
Slopes 0.00 %
Leasing
SkiStar has operating lease agreements
for piste machines and scooters. These
agreements are classified as operating
lease agreements due to the fact that the
financial risks and benefits of ownership
are not substantially transferred to the
lessee (that is, to SkiStar).
Intangible fixed assets
Acquired intangible fixed assets are
reported at acquisition cost, less
accumulated amortisation and writedowns.
All intangible fixed assets are
amortised at a rate of 20% per year.
46 47

Write-downs
Swedish Financial Accounting Standards
Council recommendation RR 17 Writedowns
is applied in the assessment of
write-down requirements. The highest of
an asset’s net realisable value and value
in use, i.e. recoverable value, determines
the write-down requirement. SkiStar
assesses the assets’ carrying value on an
fixed fees to a separate legal entity and
has no obligation to pay additional
contributions. The Group’s results are
charged with costs at the rate at which
the benefits are earned. For defined
benefit plans, remuneration is paid
to employees and previous employees
based on their salary at the time of
retirement and the number of years of
calculation assumptions, which do not
comply with RR 29.
Cash flow statement
The cash flow statement has been
prepared according to the indirect
method. The reported cash flow includes
only those transactions that have
resulted in receipts or payments.
Notes
note 1 financial instruments
Financial risks
Financial risks are defined in RR 27:37 and the description below is based on these definitions.
Financial risk implies not only a risk of losses, but also the possibility of generating profits.
SkiStar’s policy for financial risk management implies, amongst other things, that there shall be
no excess liquidity, but rather that current credits shall be amortised when large amounts of
liquidity are received in order to maximise returns. Financial operations within the company are
note 2 segment reporting
Destinations
Åre Vemdalen Hemsedal
MSEK 2004/05 2003/04 2004/05 2003/04 2004/05 2003/04
Income
Net sales 265 238 70 74 170 163
Other income 3 – 1 – – –
Total income 268 238 71 74 170 163
Income
Income per destination 32 20 11 16 12 28
Operating income 32 20 11 16 12 28
annual basis. If the recoverable value is
less than the carrying value, a writedown
is performed. If the basis of a
write-down no longer exists, the
previously performed write-down is
reversed. Write-downs are reported in
the income statement. See Note 10 for
write-downs for the year.
Taxes
SkiStar applies Swedish Financial
Accounting Standards Council
recommendation RR 9 Income Tax. The
total amount of income tax consists of
current tax and deferred tax. The tax
amounts included in the income
statement are based on reported income.
These taxes have been calculated
according to Swedish and Norwegian
service. The Group bears the risk that
the promised payments are disbursed.
The defined benefit plans comprise both
funded and unfunded plans. In those
cases in which the plans are funded, the
assets are separated into pension funds.
These plan assets may only be used to
pay remuneration in accordance with
the pension agreements. The estimated
net present value of commitments
and the fair value of the plan assets are
reported in the balance sheet as a
provision. The accounting principles
described above for defined benefit plans
are only applied in the consolidated
accounts. The Parent Company and
subsidiaries report these plans in
accordance with local rules and
regulations in each country.
Financial instruments
A financial asset or financial liability
is reported in the balance sheet when
the company becomes a party to the
instrument’s contractual terms and
conditions. Accounts receivable are
reported in the balance sheet when the
invoices have been sent, and accounts
payable amounts are reported when
invoices have been received. A financial
asset is derecognised from the balance
sheet when the rights implied in the
contract have been realised or expire,
or if the company loses control of such
rights. This is applicable to certain
financial assets. A financial liability is
derecognised from the balance sheet
when the contractual obligations have
centralised.
Foreign currency risks
SkiStar conducts operations in Norway through its subsidiary Hemsedal Skisenter AS. SkiStar’s
policy is to not hedge foreign currency risks. Of SkiStar’s total profits after tax, approximately 8%
is from the Norwegian operations. A weaker Norwegian krone compared to the Swedish krona
has led to Hemsedal being consolidated in the SkiStar Group at a lower profit level than if the
Norwegian krone was strengthened in relation to the Swedish krona. A compensatory factor is
that it is cheaper for Swedish guests to visit Hemsedal with a weaker Norwegian krone. Just over
40% of the guests at Hemsedal come from countries other than Norway, and 17% are Swedish
guests. SkiStar’s foreign (non-Swedish) operations are classified as independent, as operations
are conducted with a high degree of independence. The translation of foreign companies’ income
statements and balance sheets takes places according to the current method. This entails that
assets and liabilities are translated at the closing rate of exchange and that all items in the income
statement are translated at the average exchange rate for the period. Translation differences
are not reported in the income statement, but are entered directly under the Group’s equity. In
order to reduce foreign currency risks, assets in foreign subsidiaries are valued only in the local
currency.
Interest rate risks
SkiStar’s financial policy stipulates that all borrowing must only take place on the basis of short
fixed-interest terms of a maximum of three months. With a strong financial foundation, in which
the equity ratio amounts to 53%, and a strong cash flow, SkiStar can take advantage of the effect
of there being lower interest rates on short interest periods than on long interest periods. The
interest-bearing net debt as per year-end amounted to MSEK 721 (751). Net interest income
amounted to MSEK 26.1 (33.7) during the financial year and average interest expenses to 3.5%
(4.6). Interest-bearing liabilities amounted to MSEK 789 (771). If the interest rate level were to
increase by one percentage point, SkiStar’s interest expenses would increase by approximately
Sälen Property Total
MSEK 2004/05 2003/04 2004/05 2003/04 2004/05 2003/04
Income
Net sales 472 516 – – 977 991
Other income 9 2 45 25 58 27
Total income 481 518 45 25 1 035 1 018
Income
Income per destination 108 122 45 25 208 211
Operating income 108 122 45 25 208 211
Interest income 6 4
Interest expenses –32 –37
Tax revenue for the year – 136
Tax expenses for the year –10 –
Net income for the year 108 122 45 25 172 314
Åre Vemdalen Hemsedal
MSEK 2004/05 2003/04 2004/05 2003/04 2004/05 2003/04
Other disclosures
Assets 256 333 150 109 317 218
Share of equity – – – – – –
Total assets 256 333 150 109 317 218
Investments (net) 40 25 15 13 66 90
Depreciation/amortisation 28 29 7 7 26 21
tax regulations and reported under the
item ”Tax on income for the year”.
When reporting deferred tax, the
balance sheet method is applied
entailing that deferred tax is reported
Commitments for retirement pensions
and family pensions of employees in
Sweden are secured on the basis of
insurance with Alecta. In accordance
with a statement from the Swedish
been fulfilled or settled in some other
manner. This is applicable to certain
financial liabilities. Financial fixed assets
comprising shares are reported at
acquisition cost after any write-downs
MSEK 7 (7). SkiStar has a large number of short-term loans in order to off-set the strong
fluctuations in liquid funds during the year.
Credit risks
The risk that SkiStar’s customers will not fulfil their obligations constitutes a customer credit
risk. In light of the fact that a large portion of sales is paid in cash and that the vast majority of
accounts receivable comprise small amounts, customer credit risk is assessed to be low.
Sälen Property Total
MSEK 2004/05 2003/04 2004/05 2003/04 2004/05 2003/04
Other disclosures
Assets 998 947 298 236 2 019 1 843
Share of equity 19 15 – – 19 15
Unclassified assets – – – – – 38
Total assets 1 017 962 298 236 2 038 1 896
on all temporary differences between
booked and fiscal values. Deferred
Financial Accounting Standards
Council’s Emerging Issues Task Force,
to fair value.Interest-bearing receivables
are reported at accrued acquisition cost.
Fair value
The carrying value of financial assets and liabilities comprising deposits and borrowing is based
Investments (net) 34 81 73 2 228 211
Depreciation/amortisation 51 49 11 10 123 116
income tax liabilities and deferred tax
assets are calculated on the basis of the
expected tax rate at the point in time at
which the reversal of the temporary
difference will take place.
Provisions for pensions, employee
benefits
Employee benefits are reported in
accordance with RR 29, which has been
URA 42, this is a multi-employer
defined benefit plan. During the
2004/2005 financial year, SkiStar has
not had access to the appropriate
information necessary to report this plan
as a defined benefit plan. Therefore, the
pension plan in accordance with ITP
which is secured via Alecta is reported
as a defined contribution plan. This
year’s contributions for pension
Any possible price increases or discounts,
as well as transaction costs are allocated
over the asset’s life. Impairment tests
take place on an individual basis, against
recoverable value. After individual
valuation, operational receivables are
reported at the amounts which are
expected to be received. The expected
tenures of receivables are short and are,
therefore, valued at nominal amount,
on the nominal value as per the end of the accounting period. The carrying value can be considered
to correspond to the fair value for these items as all deposits and loans have short-term
interest rates, either at current interest rates or at interest rates fixed for a maximum of three
months. For participating interests in the real estate company Åre Centrum AB, the emission
price of the newly issued shares has been used, as the share issue was carried out recently and
the company is newly started.
The acquisition cost can, therefore, be considered to correspond to the fair value of this item.
This item is primarily comprised of other participations and long-term securities holdings. Other
long-term receivables consist of an interest-free receivable of MSEK 4 that extends for a further
2 years and that has been valued on the basis of a present value calculation. Otherwise, this item
is primarily comprised of interest-bearing debentures accruing interest at a market-based rate.
Lines of business
Alpine skiing/Lift Accommodation Ski rental
MSEK 2004/05 2003/04 2004/05 2003/04 2004/05 2003/04
Sales 545 560 162 162 91 85
Assets 741 682 229 259 50 32
Investments 140 130 6 26 7 7
Other business segments
Total
MSEK 2004/05 2003/04 2004/05 2003/04
Sales 237 211 1 035 1 018
Assets 1 018 923 2 038 1 896
Investments 75 48 228 211
applied from 1 September 2004. By
applying RR 29, defined benefit pension
plans are reported in the consolidated
insurance with Alecta amount to
MSEK 5.4 (6.5). As per 30 June 2005,
Alecta’s surplus, in the form of the
without discounting. The expected
tenures of accounts payable are short
and are, therefore, valued at nominal
Destinations
SkiStar conducts operations in Sälen, Åre and Vemdalen in Sweden and in Hemsedal in Norway.
These four destinations comprise the Group’s primary basis of division. During the 2004/05
financial year, another segment was created that is also considered to be a primary segment
accounts according to common
principles. Defined benefit pension plans
collective consolidation level, amounted
to 128.5% (124.7). The collective
amount, without discounting.
Borrowing is initially reported at the
– Properties. This segment manages properties of a structural nature held by the Group at the
different destinations. Other income within Properties is comprised only of capital gains attributable
to the sale of properties. Group-wide expenses are allocated according to estimated
are found only in the Norwegian
operations. In the Swedish operations,
consolidation level comprises the market
value of Alecta’s assets as a percentage
amount received less deductions for
transaction costs. After the acquisition
benefit. The Group’s liabilities are managed centrally and can therefore not be classified according
to destination in an informative manner.
all pension plans are reported as defined
contribution plans. For defined
of insurance commitments, calculated in
accordance with Alecta’s actuarial
date, loans are reported at the accrued
acquisition cost. Transaction costs are
Lines of Business
The lines of business which together comprise more than 75% of the Group’s business activities
are Alpine skiing/Lift, Accommodation bookings and Ski rental. These lines are considered to
contribution plans, the company pays
allocated over the tenures of the loans.
comprise the Group’s secondary segment.
48 49

note 3 classification of income
note 7 cont.
not 8 cont.
note 10 income from participations in group companies
MSEK 1 Sep 2004 1 Sep 2003
GROUP – 31 Aug 2005 - 31 Aug 2004
Income per business segment
Alpine skiing/Lift 545 560
Accommodation 162 162
Ski rental 91 85
Ski school/Activities 37 38
Sports outlets 24 42
Properties 59 57
Capital gains 45 25
Other 72 49
Total 1 035 1 018
PARENT COMPANY
Alpine skiing/Lift 447 456
Accommodation 119 121
Ski rental 74 78
Ski school/Activities 32 34
Sports outlets 24 42
Properties 56 44
Capital gains 37 25
Other 61 46
Total 850 846
note 4 own work capitalised
Own work capitalised includes expenses booked as investments for the work performed by SkiStar’s
personnel regarding investments, and expenses for the company’s own construction equipment.
note 5 other operating income
Capital gains attributable to the sale of tenant-owner’s rights and land are primarily reported
under “Other operating income”.
note 6 Fees and remuneration to auditors
1 Sep 2004 1 Sep 2003
GROUP – 31 Aug 2005 - 31 Aug 2004
KPMG
Audit assignment 872 613
Other assignments 781 –
Öhrlings PriceWaterhouseCoopers AB
Audit assignment – 333
Other assignments 122 478
Other auditors
Audit assignment 7 50
Other assignments – 10
1 782 1 484
PARENT COMPANY
KPMG
Audit assignment 610 520
Other assignments 781 –
Öhrlings PriceWaterhouseCoopers AB
Other assignments 8 333
Other auditors
Audit assignment – 16
Other assignments – 10
1 399 879
note 7 leasing fees for operating leases
1 Sep 2004 1 Sep 2003
GROUP – 31 Aug 2005 - 31 Aug 2004
Leasing expenses for the financial year 10 594 7 517
Contracted future leasing fees regarding non-terminable contracts fall due for payment as follows:
Within one year 8 650 7 499
Between one and five years 11 759 11 600
20 409 19 099
1 Sep 2004 1 Sep 2003
PARENT COMPANY – 31 Aug 2005 - 31 Aug 2004
Leasing expenses for the financial yea 8 149 7 094
Contracted future leasing fees regarding non-terminable
contracts fall due for payment as follows:
Within one year 6 226 6 505
Between one and five years 9 560 9 920
15 786 16 425
SkiStar has operating lease agreements for piste machines, scooters and contracted equipment.
Leasing fees are reported as rental charges in the income statement.
note 8 average number of employees and personnel costs
AVERAGE NUMBER OF EMPLOYEES
Average number of employees:
1 Sep 2004 1 Sep 2003
GROUP – 31 Aug 2005 - 31 Aug 2004
SWEDEN
Women 275 292
Men 452 457
NORWAY
Women 58 44
Men 86 82
Total for Parent Company 871 875
PARENT COMPANY
SWEDEN
Women 275 292
Men 452 457
Total for Parent Company 727 749
NUMBER OF MEN AND WOMEN IN COMPANY MANAGEMENT
GROUP
31 Aug 2005 31 Aug 2004
Number of women Number of women
Board of Directors 11% 10%
Other senior management 8% 22%
PARENT COMPANY
Board of Directors 11% 10%
Other senior management 8% 22%
SALARIES, OTHER REMUNERATION AND SOCIAL SECURITY CONTRIBUTIONS
Parent Company 175 560 74 873 176 937 76 159
(of which pension costs) * (9 033) (8 975)
Subsidiaries 46 492 9 340 41 114 7 048
(of which pension costs) (1 519) (1 006)
Group total 222 052 84 213 218 051 83 207
(of which pension costs)** (10 552) (9 981)
* Of the Parent Company’s pension costs, 415 (394) refers to the Board and CEO.
The Parent Company’s total pension costs are comprised of defined contribution pensions.
** Of the Group’s pension costs, 546 (505) refers to the Board and CEO.
The subsidiary consists only of the Norwegian operations and comprises defined benefit pensions.
SALARIES, OTHER REMUNERATION CLASSIFIED BY COUNTRY
PARENT COMPANY
Sweden 2 789 172 771 2 555 174 382
(of which bonuses, etc.) (0) (476) (162) (2 019)
SUBSIDIARIES
1 Sep 2004–31 Aug 2005 1 Sep 2003–31 Aug 2004
Salaries and Social security Salaries and Social security
remuneration contributions remuneration contributions
1 Sep 2004–31 Aug 2005 1 Sep 2003–31 Aug 2004
Board
and CEO
Other
employees
Board
and CEO
Other
employees
In Norway 1 121 45 371 1 022 40 092
(of which bonuses, etc.) (111) ( 285) (104) (276)
Group total 3 910 218 142 3 577 214 474
(of which bonuses, etc.) (111) (761) (266) (2 295)
Of the total amount of salaries and remuneration paid to other employees in the Group, TSEK
9,927 (7,009), including TSEK 476 (484) in cash bonus payments, refers to senior management
other than the Board and CEO.
1 Sep 2004 1 Sep 2003
ABSENCE DUE TO ILLNESS –31 Aug 2005 –31 Aug 2004
Total absence due to illness as a percentage of standard working hours 3,8% 3,6%
Percentage of consecutive total absence due to illness referring
to absence due to illness for 60 days or more 32,5% 25,4%
Absence due to illness classified between men and women:
Women 4,0% 4,4%
Men 3,7% 3,1%
Absence due to illness classified by age:
29 years of age or younger 3,0% 3,5%
30–49 years of age 4,1% 3,6%
50 years of age or above 7,6% 7,6%
BENEFITS FOR SENIOR MANAGEMENT
Remuneration in the amount of TSEK 660 has been paid to the members of the Board of
Directors, including TSEK 135 to the Chairman and TSEK 105 to each of the other Board
members elected at the general meeting of shareholders. The CEO, who is also a Board member,
received no Board fee. Otherwise, no Board member received any form of remuneration other
than the Board fee. The CEO has received salaries, remuneration and benefits at a value of TSEK
2,129 (1,850), including a cash bonus payment of TSEK 0 (162). The amount of the bonus has
been calculated based on the information presented by SkiStar regarding its operating margin
and return on equity. Bonuses for all of the members of Group management may amount to a
maximum of 40% of the employees’ fixed salary. Salaries, remuneration and benefits amounting to
a value of TSEK 9,927 (7,009), including cash bonus payments of TSEK 476 (484), were paid to the
other 12 (9) members of company management. The CEO is entitled to remuneration equivalent
to 24 monthly salaries if employment is terminated at the company’s request. If employment
is terminated at the CEO’s request, then a 6-month period of notice must be given and no
compensation other than the standard monthly salary will be provided. The CEO has a defined
contribution pension plan. The company pays contributions equivalent to 30% of the CEO’s
salary. There are no other pension commitments on the part of the company. The remaining
members of the company’s senior management have periods of notice of a maximum of 18
months. Provisions for pensions are made in accordance with the usual ITP plan.
EMPLOYEE DEBENTURE PROGRAMME 2003/08
SkiStar’s personnel were invited to subscribe to debentures in the spring of 2003 and 2004 with
a total amount of MSEK 25, which can be converted during the term of the loans into a total of
314,456 B shares at a rate of SEK 79:50. The company management have subscribed to
debentures equivalent to MSEK 8.8, which were converted to 110,224 B shares in September 2004.
The CEO has subscribed to debentures in the amount of SEK 1,148,934, comprising 14,452
B shares. All members of the company’s management have converted their debentures to shares.
The company’s principal owners have issued options to sell implying that individuals in Group management
may, in July 2008, sell 61,224 B shares for 89:00 SEK per share to the principal owners,
and the CEO may sell 114,452 B shares for 130:00 SEK per share on 31 July 2007.
note 9 depreciation of tangible and amortisation of intangible
fixed assets
1 Sep 2004 1 Sep 2003
GROUP –31 Aug 2005 –31 Aug 2004
Capitalised expenditure for computer software –6 167 –5 323
Rental rights and similar rights –738 –484
Goodwill –6 672 –5 552
Buildings, land and land improvements –33 233 –30 100
Machinery, equipment and plant –75 706 –74 916
PARENT COMPANY
–122 516 –116 375
Capitalised expenditure for computer software –6 167 –5 323
Rental rights and similar rights –366 –484
Goodwill –2 674 –1 023
Buildings, land and land improvements –24 415 –22 825
Machinery, equipment and plant –53 255 –56 089
–86 877 –85 744
1 Sep 2004 1 Sep 2003
–31 Aug 2005 –31 Aug 2004
Write-downs –29 872 –66 778
–29 872 –66 778
Write-downs for both years refer to the subsidiary Åre Invest AB, 556535-3579. Åre Invest is
forming a sub-Group with one subsidiary. Due to the fact that no operations are being
conducted in the sub-Group, the recoverable value is calculated as the Group’s equity. Writedowns
have been made to the reported amounted of equity in the sub-Group.
note 11 appropriations
Difference between recorded depreciation
and depreciation according to plan
1 Sep 2004 1 Sep 2003
–31 Aug 2005 –31 Aug 2004
- Buildings, land and land improvements – 2 435
- Machinery, equipment and plant – 12 685
Tax allocation reserve, reversals for the year 895 50 055
note 12 tax on income for the year
895 65 175
1 Sep 2004 1 Sep 2003
GROUP –31 Aug 2005 –31 Aug 2004
Current tax expense/tax revenue
Tax expenses for the period –5 511 –7 949
Adjustments of tax attributable to previous years 1 207 37 650
Deferred tax expenses/tax revenue
–4 304 29 701
Deferred tax regarding temporary differences –5 354 15 172
Deferred tax in tax values in losses carry-forward
capitalised during the year 8 766 70 648
Deferred tax expenses due to the utilisation of previously
capitalised losses carry-forward –8 766 –
Deferred tax in conjunction with revaluation
of reported value of deferred tax assets – 21 301
Deferred tax, other 334 –
–5 020 107 121
Tax on participations in associated companies’ income –387 –281
Total reported tax expenses in the Group –9 711 136 541
PARENT COMPANY
Current tax expense/tax revenue
Tax revenue for the period 325 725
Adjustments of tax attributable to previous years 1 947 48 359
Deferred tax expenses/tax revenue
2 272 49 084
Deferred tax regarding temporary differences –5 890 –1 150
Deferred tax in tax value capitalised
during the year in losses carry-forward – 70 648
Deferred tax in conjunction with revaluation
of reported value of deferred tax assets –21 918 –
Deferred tax expenses due to the utilisation
of previously capitalised loss carry-forward –8 766 –
–36 574 69 498
Total reported tax expenses in the Parent Company –34 302 118 582
1 Sep 2003
1 Sep 2004
RECONCILIATION OF CURRENT TAX
–31 Aug 2004
–31 Aug 2005
Group Percent Amount Percent Amount
Income before tax 181 673 176 943
Tax according to current tax rates
for Parent Company 28,0% –50 868 28,0% –49 544
Amortisation of goodwill arising
on consolidation 0,2% –334 0,2% –430
Other non-deductible expenses 33% –60 269 30,8% –54 564
Non-taxable income –53,1% 96 471 –51,3% 90 698
Tax attributable to previous years –0,7% 1 207 –21,3% 37 650
Revaluation of deferred tax
temporary differences 2,9% –5 354 0,7% –1 151
Utilisation of previous non-capitalised
losses carry-forward –1,5% 2 662 –6,3% 11 072
Revaluation of capitalised loss carry-forward –5,9% 8 766 – –
Reversal of previously taxed untaxed reserves – – –7,9% 14 015
Capitalised losses carry-forward – – –52,0% 91 949
Other activities 1,1% –1 992 1,8% –3 154
Reported current tax 4,3% –9 711 –77,2% 136 541
50 51

not 14 cont. note 16 cont.
note 18 constructions in progress
not 12 cont.
RECONCILIATION OF CURRENT TAX
Parent Company Percent Amount Percent Amount
Profit/loss before tax 129 744 149 328
Tax according to current tax rates
for Parent Company 28,0% –36 328 28,0% –41 812
Non-deductible expenses 45,9% –68 544 49,1% –73 248
Non-taxable income –64,6% 96 431 –70,1% 104 714
Tax attributable to previous years –1,3% 1 947 –32,4% 48 359
Utilisation of previously capitalised
losses carry-forward – – –7,4% 11 072
Revaluation of capitalised
losses carry-forward 14,7% –21 918 – –
Capitalised losses carry-forward – – –47,3% 70 648
Revaluation of deferred tax
temporary differences 3,3% –5 890 0,7% –1 151
Reported current tax 26,0% –34 302 –79,5% 118 582
note 13 capitalised expenditure for computer software
GROUP 31 Aug 2005 31 Aug 2004
Opening acquisition cost 28 810 28 240
Changes for the year
-Capitalised costs 7 003
-Reclassifications – 570
Closing accumulated acquisition cost 35 813 28 810
Opening amortisation –19 706 –14 383
Changes for the year
-Amortisation –6 167 –5 323
Closing accumulated amortisation –25 873 –19 706
Residual value at end of period 9 940 9 104
PARENT COMPANY 31 Aug 2005 31 Aug 2004
Opening acquisition cost 28 810 21 626
Changes for the year
-Capitalised costs 7 003 –
-Merger of subsidiaries – 6 614
-Reclassifications – 570
Closing accumulated acquisition cost 35 813 28 810
Opening amortisation –19 706 –11 613
Changes for the year
1 Sep 2004
–31 Aug 2005
-Merger of subsidiaries – –2 770
note 14 rental rights and similar rights
1 Sep 2003
–31 Aug 2004
GROUP 31 Aug 2005 31 Aug 2004
Opening acquisition cost 7 793 7 872
Changes for the year
-Acquisitions 23 232 78
-Disposals –100 –
-Translation differences 150 –157
Closing accumulated acquisition cost 31 075 7 793
Opening amortisation –2 359 –1 875
Changes for the year
-Disposals 50 –
-Amortisation –738 –484
-Translation differences –36 –
Closing accumulated amortisation –3 083 –2 359
Carrying value at end of period 27 992 5 434
PARENT COMPANY 31 Aug 2005 31 Aug 2004
Opening acquisition cost 6 317 –
Changes for the year
-Acquisitions 554 –
-Consolidation of subsidiaries – 6 317
-Disposals –100 –
Closing accumulated acquisition cost 6 771 6 317
Opening amortisation –2 410 –
Changes for the year
-Consolidation of subsidiaries – –1 926
-Disposals 50 –
-Amortisation –366 –484
Closing accumulated amortisation –2 726 –2 410
Carrying value at end of period 4 045 3 907
not 15 goodwill
GROUP 31 Aug 2005 31 Aug 2004
Opening acquisition cost 75 216 70 585
Changes for the year
-Acquisitions 1 186 5 476
-Translation differences 826 –845
Closing accumulated acquisition cost 77 228 75 216
Opening amortisation –57 647 –52 223
Changes for the year
-Amortisation –6 672 –5 552
-Translation differences –216 128
Closing accumulated amortisation –64 535 –57 647
Residual value at end of period 12 693 17 569
PARENT COMPANY 31 Aug 2005 31 Aug 2004
Opening acquisition cost 8 677 –
Changes for the year
-Merger of subsidiaries 9 765 8 677
Closing accumulated acquisition cost 18 442 8 677
Opening amortisation –6 300 –
Changes for the year
-Merger of subsidiaries –6 580 –5 277
-Amortisation –2 674 –1 023
Closing accumulated amortisation –15 554 –6 300
Residual value at end of period 2 888 2 377
note 16 buildings, land and land improvements
GROUP 31 Aug 2005 31 Aug 2004
Opening acquisition cost 1 378 178 1 320 577
Changes for the year
-Purchases 49 444 61 720
-Investment contributions received –1 155 –4 494
-Acquisition of companies 88 351 18 219
-Sales and disposals –142 431 –18 946
-Reclassifications 36 442 14 451
-Translation differences 14 577 –13 349
Closing accumulated acquisition cost 1 423 406 1 378 178
Opening depreciation –360 460 –327 809
Changes for the year
-Acquisition of companies –19 558 –7 654
-Sales and disposals 9 724 1 769
-Depreciation –33 233 –30 100
-Translation differences –3 520 3 334
Closing accumulated depreciation –407 047 –360 460
Residual value at end of period 1 016 359 1 017 718
Carrying value of land for properties (in Sweden) 175 380 168 636
Carrying value of pistes 144 516 139 575
Tax assessment value of buildings (in Sweden) 214 535 179 062
Tax assessment value of land (in Sweden) 58 328 42 099
PARENT COMPANY 31 Aug 2004 31 Aug 2004
Opening acquisition cost 1 000 590 –
Changes for the year
-Purchases 13 857 15 837
-Investment contributions received –1 155 –4 494
-Consolidation of subsidiaries 65 960 982 450
-Sales and disposals –10 731 –7 654
-Reclassifications 36 442 14 451
Closing accumulated acquisition cost 1 104 963 1 000 590
Opening depreciation –277 679 –
Changes for the year
-Consolidation of subsidiaries –8 029 –255 781
-Sales and disposals 639 927
-Depreciation –24 415 –22 825
Closing accumulated depreciation –309 484 –277 679
Carrying value at end of period 795 479 722 911
Carrying value of properties (in Sweden) 172 513 166 286
Carrying value of pistes 98 147 98 402
Tax assessment value of buildings (in Sweden) 164 004 154 039
Tax assessment value of land (in Sweden) 53 695 40 906
note 17 machinery, equipment and plant
GROUP 31 Aug 2005 31 Aug 2004
Opening acquisition cost 1 195 357 1 136 406
Changes for the year
-Purchases 78 760 95 878
-Investment contributions received –546 –20 098
-Acquisition of company 8 681 –
-Sales and disposals –56 648 -62 814
-Reclassifications 32 031 70 099
-Translation differences 25 271 –24 114
Closing accumulated acquisition cost 1 282 906 1 195 357
Opening depreciation –684 032 –677 549
Changes for the year
-Acquisition of Company –8 629 –
-Sales and disposals 45 872 53 200
-Depreciation –75 706 –74 916
-Translation differences –14 046 15 233
Closing accumulated depreciation –736 541 –684 032
Residual value at the end of the period 546 365 511 325
PARENT COMPANY 31 Aug 2005 31 Aug 2004
Opening acquisition cost 892 707 1 936
Changes for the year
-Purchases 15 425 49 776
-Investment contributions received –546 –20 098
-Merger of subsidiaries – 852 773
-Sales and disposals –49 197 –35 195
-Reclassifications 32 031 43 515
Closing accumulated acquisition cost 890 420 892 707
Opening depreciation –521 851 –481
Changes for the year
-Merger of subsidiaries – –492 930
-Sales and disposals 43 052 27 649
-Depreciation –53 255 –56 089
Closing accumulated depreciation –532 054 –521 851
Residual value at the end of the period 358 366 370 856
GROUP 31 Aug 2005
Opening value 41 931 45 998
-Investments 130 378 98 592
-Reclassifications –68 473 –102 659
Closing value 103 836 41 931
PARENT COMPANY 31 Aug 2005 31 Aug 2004
Opening value 41 931 5 176
-Investments 119 295 98 592
-Reclassifications –68 473 –61 837
Closing value 92 753 41 931
note 19 participations in group companies
31 Aug 2005 31 Aug 2004
Opening value 324 550 646 871
-Acquisitions 2 464 21 702
-Merger of subsidiaries –11 916 –277 100
-New share issue – 4 300
-Sales – –4 445
-Write-downs –29 872 –66 778
Closing value 285 226 324 550
Specification of the Parent Company’s
holdings of participations in Group companies 31 Aug 200531 Aug 2004
Subsidiaries / Corporate Identity Number / Number of Number of
Reported Reported
participations
in %
participations
Registered Offices
value value
Hemsedal Skisenter A/S / NO912615707 / Hemsedal 69 357 99,8% 117 687 117 320
Sälens Högfjällshotell AB / 556200-6311 / Sälen 2 600 000 100,0% 9 427 9 427
Åre Invest AB / 556535-3579 / Åre 10 000 000 100,0% 155 875 185 747
Fastica Lindvallen AB / 556182-4581 / Sälen 1) 1 000 100,0% – 11 916
FunStar AB / 556662-2972 / Sälen 1 000 100,0% 100 100
Vintertorget i Sälen KB / 969618-0786 / Sälen 198 99,0% 198 –
SkiStar Norway A/S / NO977107520 / Hemsedal 5 000 100,0% 1 899 –
Sälfjällets HB / 919463-6921 / Sälen 100,0% 40 40
285 226 324 550
The participating interest in equity is referred to and the amount of this interest
corresponds to the number of votes for the total number of shares.
1) The company was merged with the Parent Company in 2004/05.
note 20 participations in associated companies
GROUP 31 Aug 200531 Aug 2004
Opening acquisition cost 15 298 14 443
-Sales –790 –
-Portion of income 4 645 855
Closing value 19 153 15 298
PARENT COMPANY 31 Aug 200531 Aug 2004
Opening acquisition cost 12 364 –
-Merger of subsidiaries – 12 364
-Sales –80 –
Closing value 12 284 12 364
Specification of the Group’s and the Parent Company’s holdings of
participations in associated companies 31 Aug 200531 Aug 2004
Associated companies/
Corporate Identity Number/
Registered offices
Adjusted
equity /Net
income for
the year
Number of
participations
in %
Portion of
equity in
the Group
Carrying
value in
the Parent
Company
Tandådalens Fjällhotell Service AB 5 361 20 000
556086-0990 / Sälen 3 034 48 5 361 2 000
Lima Sälen Fastighets AB 6 213 45 000
556305-5382 / Sälen 803 45 6 213 4 498
Transtrand Sälen Fastighets AB 7 067 54 000
556258-6817 / Sälen 834 45 7 067 5 445
Åre Turistbyrå AB 360 3 000
556510-5508, Åre –47 30 357 300
Åreföretagarna AB 97 275
556171-5961, Åre 22 17 99 26
Åre 2007 AB 55 150
556605-8458, Åre –1 15 56 15
19 153 12 284
52 53

note 20 cont.
not 22 cont.
note 26 untaxed reserves
note 31 accrued expenses and deferred income
‘Adjusted equity’ refers to the owned portion of the company’s equity, including the share of equity
in untaxed reserves. ‘Net income for the year’ refers to the participating interest in the company’s
income after tax, including the share of equity in changes in untaxed reserves for the year. The
consolidated income statement reports the share in profits from associated companies under two
items: ‘Income before tax’ including any depreciation of surplus values, which is included in
operating income, and under ‘Participations in associated companies’ tax’ which is reported
together with the Group’s taxes.
The participating interest in equity is referred to, which also corresponds with the number of
votes for the total number of shares.
SkiStar owns 15% of the shares in Åre 2007 AB, which will organise the FIS World Alpine Ski
Championships in 2007. After the Championships, SkiStar has committed to acquire the
investments made by Åre 2007 in and around the skiing area prior to the Championships for an
estimated market value of MSEK 36. SkiStar will also participate in the financing of Åre 2007 by
lending MSEK 11 in three rounds on the basis of market terms and conditions, comprising a total
of MSEK 33.
note 21 other participations and investments held
as fixed assets
GROUP 31 Aug 2005 31 Aug 2004
Opening acquisition cost 41 230 12 004
-Acquisitions 14 402 29 352
-Sales –1 451 –1 534
-Reclassifications 749 1 408
-Translation difference 22 –
Closing value 54 952 41 230
PARENT COMPANY 31 Aug 2005 31 Aug 2004
Opening acquisition cost 39 691 109
-Acquisitions 14 400 41 116
-Sales –154 –1 534
Closing value 53 937 39 691
note 22 deferred tax assets
Deferred
Deferred tax income tax
GROUP 31 Aug 2005
assets liabilities Net
Fixed assets – 89 362 –89 362
Tax allocation reserves – 70 –70
Unutilised loss carry-forward 120 701 – 39 964
120 701 89 432 31 269
Set-off –89 432 –89 432 –
Net deferred tax assets 31 269 – 31 269
Deferred
Deferred tax income tax
GROUP 31 Aug 2004
assets liabilities Net
Fixed assets – 82 676 –82 676
Tax allocation reserves – 251 –251
Unutilised loss carry-forward 118 136 – 70 648
118 136 82 927 35 209
Set-off –82 927 –82 927 –
Net deferred tax assets 35 209 – 35 209
PARENT COMPANY 31 Aug 2005
Deferred tax
assets
Deferred
income tax
liabilities
Fixed assets 17 092 –17 092
Unutilised loss carry-forward 39 964 39 964
39 964 17 092 22 872
Set-off –17 092 –17 092
Net deferred tax assets 22 872 – 22 872
Deferred
Deferred tax income tax
PARENT COMPANY 31 Aug 2004
assets liabilities Net
Fixed assets 11 201 –11 201
Unutilised loss carry-forward 70 648 70 648
70 648 11 201 59 447
Set-off –11 201 –11 201
Net deferred tax assets 59 447 – 59 447
Net
Change in deferred tax in temporary differences and loss carry-forwards.
note 23 other long-term receivables
GROUP 31 Aug 2005 31 Aug 2004
Opening acquisition cost 12 868 15 067
-Additional receivables 1 784 –
-Payment of receivables –2 045 –2 089
-Reclassifications – –110
Closing value 12 607 12 868
PARENT COMPANY 2005-08-31 2004-08-31
Opening acquisition cost 12 868 283
-Additional receivables 1 784 14 784
-Payment of receivables –2 045 –2 089
-Reclassifications – –110
Closing value 12 607 12 868
note 24 prepaid expenses and accrued income
GROUP 31 Aug 2005 31 Aug 2004
Prepaid rental and leasing fees 5 027 4 863
Prepaid marketing 2 923 8 996
Other items 7 591 7 985
Closing value 15 541 21 844
PARENT COMPANY 31 Aug 2005 31 Aug 2004
Prepaid rental and leasing fees 5 027 4 863
Prepaid marketing 2 923 8 996
Other items 7 313 4 425
Closing value 15 263 18 284
note 25 equity
Amount at
beginning
of year
Reported in
the income
statement
The number of shares amounts to 19,515,800, of which 912,000 are A shares with ten votes per
share and 18,603,800 are B shares with one vote per share. During 2004/05 debentures equivalent
to 236,154 B shares were converted. In addition, debentures equivalent to 12,234 B shares were
submitted for conversion at a rate of SEK 79:50. These shares were registered with VPC (the
Swedish Central Securities Depository & Clearing Organisation) in September 2005. Remaining
debentures in the amount of MSEK 5 will provide an additional 66,077 B shares when full
conversion takes place, resulting in a dilution of existing shares of 0.3%. Conversion may take place
from 15 June 2008. The highest listed share price during the financial year was 161:50 on 13 July
2005 and the lowest listed share price was 110:50 on 1 September 2004. The currency effect on
equity for the 2004/05 financial year changed by TSEK 11,287 (-1,986). The accumulated currency
effect in equity since the acquisition of Hemsedal Skisenter A/S was TSEK 13,795 as per 31 August
2005. The company has not been charged with any share issue expenses.
Reported
against equity
Amount at
financial year
GROUP
Fixed assets –82 676 –5 201 –1 485 –89 362
Acquired loss carry-forward 47 488 30 684 2 565 80 737
Tax allocation reserves –251 181 –70
Unutilised loss carry-forward 70 648 –30 684 39 964
35 209 –5 020 1 080 31 269
Amount at
beginning
of year
Reported in
the income
statement
Reported
against equity
Amount at
financial year
PARENT COMPANY
Fixed assets –11 201 –5 891 –17 092
Unutilised loss carry-forward 70 648 –30 684 39 964
59 447 –36 575 – 22 872
The unutilised loss carried forward for which deferred tax assets have not been reported was
assessed at MSEK 493 as per 31 August 2005. This loss carry-forward arose in the Group as a
result of the acquisition of companies having MSEK 781 in utilised loss carry-forward, which has
been reduced by MSEK 288 on the basis of the valuation of deferred tax assets.
31 Aug 2005 31 Aug 2004
Accumulated depreciation in excess of plan:
-Buildings, land and land improvements 55 493 46 149
-Machinery, equipment, and plant 229 664 229 664
Tax allocation reserves
-reserve for 1999 – 456
-reserve for 2000 – 439
-reserve for 2004 250 –
Closing value 285 407 276 708
Accelerated depreciation and tax allocation reserves provided during the 2004/05 financial year
originate from the merger with Fastica Lindvallen AB.
note 27 provision for pensions
There are defined benefit pension plans in the Norwegian operations. Provisions for the defined
benefit plans amount to MSEK 10.1, whereas the fair value of the plan assets amounts to MSEK 6.1.
The net amount of these items is reported in the balance sheet and totals MSEK 4.0. The
transition to the new accounting principle resulted in a reduction in SkiStar’s equity by a net
amount of MSEK 1.3 after deductions for deferred tax. Costs for defined benefit pension plans
amount to MSEK 1.5. Disclosures regarding the defined benefits pension plans have been limited as
this item is deemed to be insignificant.
note 28 debentures
A convertible debenture loan 2003/08 (employee convertible) in the total amount of TSEK 25,000
was issued in June 2003 and TSEK 13,830 was subscribed by SkiStar personnel who work for the
company on a year-round basis. The remaining TSEK 11,170 was placed in the subsidiary Sälens
Högfjällshotell AB for future use. In May 2004, an additional TSEK 10,852 was subscribed to by
personnel, and during 2004/05 the remaining TSEK 318 was subscribed to by personnel. When all
of the debentures are converted, 314,465 new B shares will be issued, resulting in a 1.6% dilution
of existing shares. The employee convertible debentures can be converted to shares from 1 August
2004 until 15 June 2008, with the exception of the period from 1 September up to and including
the day of record for the payment of dividends for the respective year. The issue price is SEK 79:50.
Debentures in the amount of TSEK 19,746 had been submitted for conversion as of 31 August
2005, corresponding to 248,388 new B shares. As per 31 August 2005, TSEK 5,254 in debentures
remain outstanding. The debentures bear interest at a rate equal to the 12-month STIBOR + 1
percentage point. The equity portion of the loan does not comprise material amounts, which is the
reason that the convertible loan is reported as a liability in its entirety
note 29 liabilities to credit institutions
GROUP 31 Aug 2005 31 Aug 2004
Falls due for payment within one year from balance sheet date 17 872 62 317
Falls due for payment 1-5 years from balance sheet date 521 218 466 993
Falls due for payment five years after balance sheet date 244 196 231 914
Closing value 783 286 761 224
Granted overdraft facilities amounted to 692 072 285 970
Unutilised portion of overdraft facilities 451 769 145 987
Other unutilised overdraft facilities 130 000 –
PARENT COMPANY 31 Aug 2005 31 Aug 2005
Falls due for payment within one year from balance sheet date 8 400 26 380
Falls due for payment 1-5 years from balance sheet date 505 662 530 618
Falls due for payment five years after balance sheet date 64 592 84 062
Closing value 578 654 641 060
Granted overdraft facilities amounted to 650 000 250 000
Unutilised portion of overdraft facilities 472 063 110 017
Other unutilised overdraft facilities 130 000 –
note 30 liabilities to group companies
31 Aug 2005 31 Aug 2004
Loans to/from Group companies
Åre Invest AB 41 377 41 376
Sälens Högfjällshotell AB 106 584 89 763
Hemsedal Skisenter A/S 3 169 7 234
Åre Vemdalen AB –188 129 –197 786
Fastica Lindvallen AB – 3
FunStar AB –100 –
Vintertorget i Sälen KB –278 –
Closing value –37 377 –59 410
TSEK
GROUP 31 Aug 2005 31 Aug 2004
Accrued salary and social security contributions 27 715 31 177
Accrued financial expenses 2 319 3 716
Other items 35 687 25 686
Closing value 65 721 60 579
PARENT COMPANY 31 Aug 2005 31 Aug 2004
Accrued salary and social security contributions 27 715 29 857
Accrued financial expenses 2 008 3 155
Other items 26 353 17 753
Closing value 56 076 50 765
note 32 pledged assets and contingent liabilities
PLEDGED ASSETS
GROUP 31 Aug 2005 31 Aug 2004
Property mortgages 790 816 552 801
Floating charges – 165 375
Fixed assets Hemsedal group 272 547 306 859
Shares in subsidiaries – 102 371
Other pledged assets 1 707 1 753
Closing value 1 065 070 1 129 159
Of which pledged assets for the company’s own liabilities 981 288 1 071 142
PARENT COMPANY 31 Aug 2005 31 Aug 2004
Property mortgages 718 316 598 300
Floating charges – 165 375
Shares in subsidiaries – 185 747
Other pledged assets 1 707 1 753
Closing value 720 023 951 175
Of which pledged assets for the company’s own liabilities 636 241 893 158
CONTINGENT LIABILITIES
GROUP 31 Aug 2005 31 Aug 2004
Contributions with conditional liability to repay 27 983 38 270
Guarantees 45 298 25 075
Other contingent liabilities 1 700 19 200
Closing value 74 981 82 545
PARENT COMPANY 31 Aug 2005 31 Aug 2004
Contributions with conditional liability to repay 27 983 38 270
Guarantees 37 298 25 075
Other contingent liabilities 1 700 19 200
Closing value 66 981 82 545
note 33 mergers
During the year, mergers were executed with the following companies. The companies were
not acquired during the year and did not conduct any operations.
Date of
Untaxed Merger
COMPANY merger Assets Liabilities reserves difference
Fastica Lindvallen AB, 556182-4581 22 Sep 2004 14 219 187 9 594 –7 478
Åre Resort AB, 556097-2720 8 Dec 2003 50 926 – – 50 926
65 145 187 9 594 43 448
54 55

note 34 ifrs
Transition to accounting according to IFRS, International Financial Reporting Standards
From 1 September 2005, SkiStar will prepare its consolidated accounts according to IFRS adopted
by the EU Commission. The interim report for the first quarter 2005/06 will be the first financial
report in which IFRS is applied and the first annual report in which the standards will be applied will
be the 2005/06 financial year. The restatement of the accounts for 2004/05 financial year has taken
place in accordance with IFRS 1, which regulates the manner in which first-time adopters preparing
complete IFRS consolidated accounts are to undertake the transition to the new framework. The
major principle is that all IFRS in effect in 2005 shall be applied retroactively. Comparative figures
for the 2004/05 financial year are to be restated in accordance with the standards adopted by the
EU Commission on 31 August 2005, as the interim reports and annual reports include comparative
figures for corresponding periods during the previous year. IAS 39 Financial Instruments is, however,
an exception to this requirement of restatement of figures for the comparative year. A description
of the most significant effects of the transition is provided below.
IAS 16 – Property, Plant and Equipment
According to IFRS, each component of a tangible fixed asset is to be depreciated separately when
the acquisition cost of the component is significant in relation to the overall acquisition cost of the
asset in question. Replacement of identified components is capitalised, at which time any remaining
residual values are derecognised. The transition to component depreciation according to IAS 16
means that the carrying value of the tangible fixed assets increases by MSEK 64 as per 31 August
2005 and that depreciation decreased by MSEK 1. Capitalisation of replaced components has taken
place at a value of MSEK 6. No tax effects have arisen for the adjustments of the fixed asset values
referring to the skiing operations that are tax-exempt in Sweden.
IFRS BALANCE SHEET AS PER 1 SEPTEMBER 2004
Current Minority
Snow
According
principles interests
Lifts systems Buildings Goodwill to IFRS
MSEK 1 Sept 2004 IAS 1 IAS 16 IAS 16 IAS 16 IFRS 3 1 Sept 2004
Assets
Fixed assets
Intangible fixed assets 32,1 32,1
Tangible fixed assets 1 571,0 14,5 –4,8 48,0 1 628,7
Financial fixed assets 105,1 –0,2 1,3 –13,4 92,8
Total fixed assets 1 708,2 14,3 –3,5 34,6 1 753,6
Current assets
IFRS 3 – Business Combinations
Goodwill will no longer be amortised according to plan. Had the new framework been applied in
2004/05 this would have entailed a reversal of amortisation according to plan in the amount of
MSEK 7. Instead, it will be obligatory to perform an annual impairment test in order to determine
any write-down requirements. A write-down shall take place if the reported value is less than the
value in use. Executed impairment tests have not indicated any requirement for a write-down of
goodwill. According to the transitional rules stipulated in IFRS 1 First Time Adoption of International
Financial Reporting Standards, SkiStar has chosen not to apply IFRS 3 to previous acquisitions.
Comparative figures regarding acquisitions executed prior to and during 2003/04 have, therefore,
not been restated.
IAS 1 – Presentation of Financial Statements
Minority shares in income for the year are no longer reported in the income statement. Such
minority shares in income are, instead, reported on a separate line immediately following the
income statement, specified according to majority and minority interests, and in the balance sheet
minority interests are reported within equity, although under a separate heading.
IAS 39 – Financial Instruments
According to the EU approved version of IAS 39, financial assets and liabilities should be valued at
fair value or accrued acquisition cost depending on the classification. Under IAS 39, all financial
derivative instruments shall be valued on an on-gong basis at market value. The introduction of
IAS 39 which, with the support of IFRS 1, will first be implemented on 1 September 2005, is not
deemed to produce any effect on reported equity or on reported income.
Interest-bearing 14,0 14,0
Non-interest bearing 174,2 174,2
Total current assets 188,2 188,2
Total assets 1 896,4 14,3 –3,5 34,6 1 941,8
note 34 cont.
IFRS BALANCE SHEET 31 AUG 2005
MSEK
Assets
Fixed assets
Current
principles
31 Aug 2005
Minority
interests
IAS 1
Lifts
IAS 16
Snow systems
IAS 16
Buildings
IAS 16
Goodwill
IFRS 3
According
to IFRS
31 Aug 2005
Intangible fixed assets 50,6 7,0 57,6
Tangible fixed assets 1 666,6 17,5 –5,0 51,3 1 730,4
Financial fixed assets 118,0 –0,1 1,4 –14,4 104,9
Total fixed assets 1 835,2 17,4 –3,6 36,9 7,0 1 892,9
Current assets
Interest-bearing 61,0 61,0
Non-interest bearing 141,9 141,9
Total current assets 202,9 202,9
Total assets 2 038,1 17,4 –3,6 36,9 7,0 2 095,8
Equity and liabilities
Equity 1 075,4 0,5 17,4 –3,6 36,9 7,0 1 133,6
Minority shareholding 0,5 –0,5 0,0
Long-term liabilities
Interest-bearing 770,7 770,7
Non-interest bearing 5,0 5,0
Current liabilities
Interest-bearing 17,9 17,9
Non-interest bearing 168,6 168,6
Total equity and liabilities 2 038,1 0,0 17,4 –3,6 36,9 7,0 2 095,8
Equity and liabilities
Equity 984,1 0,5 14,3 –3,5 34,6 1 030,0
Minority shareholding 0,5 –0,5 0,0
Long-term liabilities
Interest-bearing 709,0 709,0
Non-interest bearing 4,1 4,1
Current liabilities
Interest-bearing 62,2 62,2
Non-interest bearing 136,5 136,5
TOTAL EQUITY AND LIABILITIES 1 896,4 0,0 14,3 –3,5 34,6 0,0 1 941,8
Sälen, 4 November 2005
IFRS Income Statement 04/05
MSEK
Current
principles
2004/05
Minority
interests
IAS 1
Lifts
IAS 16
Snow systems
IAS 16
Buildings
IAS 16
Goodwill
IFRS 3
According
to IFRS
2004/05
Erik Paulsson
Chairman
Eva-Karin Sjödin Dahl
Staffan Berglund
Employee representative
Net sales 977,0 977,0
Other income 58,5 58,5
Total operating income 1 035,5 1 035,5
Goods for resale –56,2 –56,2
Other external expenses –336,5 2,3 3,2 –331,0
Personnel costs –312,5 –312,5
Total operating expenses –705,2 2,3 3,2 –699,7
Income before depreciation 330,3 2,3 3,2 335,8
Depreciation of fixed assets –122,5 0,6 –0,2 0,1 7,0 –115,0
Income after depreciation 207,8 2,9 –0,2 3,3 7,0 220,8
Financial items, net –26,1 –26,1
Income before tax 181,7 2,9 –0,2 3,3 7,0 194,7
Tax –9,7 0,2 0,1 –0,9 –10,3
Net income for the year 172,0 3,1 –0,1 2,4 7,0 184,4
Bengt Larsson
Olof Larsson
Mats Paulsson
Employee representative
Mats Qviberg Per-Uno Sandberg Mats Årjes
CEO
of which participations held by majority partners 172,0 184,4
of which participations held by minority partners 0 0
56 57

Audit report
Board
To the general meeting of the
shareholders of SkiStar AB (publ)
Corporate Identity Number 556093-6949
We have audited the annual financial statements, the conso-
consolidated accounts. As a basis for our opinion concerning
lidated financial statements, the accounting records and the
discharge from liability, we examined significant decisions,
administration of the Board of Directors and the CEO of
actions taken and circumstances of the company in order to
SkiStar AB (publ) for the financial year 1 September 2004
be able to determine the liability, if any, to the company of
– 31 August 2005. The Board of Directors and the CEO have
any Board member or the CEO. We also examined whether
responsibility for accounting documents and the
administration of the company and for the application of the
Annual Accounts Act during the preparation of the annual
financial statements and the consolidated financial statements.
Our responsibility is to express an opinion on the annual
accounts, the consolidated accounts and the administration on
the basis of our audit.
any Board member or the CEO has, in any other way, acted in
contravention of the Companies Act, the Annual Accounts Act
or the Articles of Association. We believe that our audit
provides a reasonable basis for our opinion set out below.
The annual accounts and the consolidated accounts have
been prepared in accordance with the Annual Accounts Act
Erik Paulsson, born 1942.
Chairman of the Board,
Elected 1977. Managing Director of Fabege
AB. Chairman of the Board of Directors of
Wihlborgs Fastigheter AB. Board member of
Nolato AB.
Shares: Including family and company
2,915,330 B shares.
Mats Paulsson, born 1944.
Elected 1977.
Managing Director of Peab AB. Board member
of Brinova Properties AB.
Shares: Including family and company 912,000
A shares and 2,194,046 B shares.
Olof Larsson, born 1956.
Elected 1997.
Managing Director of Fiskarheden Trävaru AB.
Chairman of the Board of Sälen Timber AB.
Shares: Including family, 10 128 B shares.
and, thereby, give a true and fair view of the company’s and
We conducted our audit in accordance with Swedish generally
the Group’s financial position and results of operations in
accepted accounting principles. These principles require
accordance with generally accepted accounting principles in
that we plan and perform the audit so as to obtain reasona-
Sweden. The statutory administration report is consistent with
ble assurance that the annual accounts and the consolidated
the other parts of the annual accounts and the consolidated
accounts are free of material misstatement. An audit includes
accounts.
the examination, on a test basis, of evidence supporting the
amounts and disclosures in the accounts. An audit also
We recommend to the Annual General Meeting of share-
includes the assessment of the accounting principles used and
holders that the income statements and balance sheets of the
their application by the Board of Directors and the CEO,
Parent Company and the Group be adopted, that the profit
assessment of significant estimates made by the Board of
for the Parent Company be allocated in accordance with the
Directors and the CEO when preparing the annual accounts
and consolidated accounts, and evaluation of the overall
presentation of information in the annual accounts and the
proposal in the administration report, and that the members
of the Board of Directors and the CEO be discharged from
liability for the financial year.
Mats Årjes, born 1967
Elected 2003.
CEO of SkiStar AB.
Board member of Bilia AB.
Shares: 114,452 B shares.
Eva-Karin Sjödin Dahl, born 1962.
Elected 2003.
Vice President Sales & Distribution Airline
Commercial at Scandinavian Airlines.
Shares: 150 B shares.
Per-Uno Sandberg, born 1962.
Elected 2002.
Board member of Johnson Pump AB.
Shares: 900,000 B shares.
Sälen, 11 November 2005
KPMG Bohlins AB
Carl Lindgren
Authorised Public Accountant
Auditors
KPMG Bohlins AB have been the appointed accounting firm of the company since the Annual General
Meeting of shareholders in 2003. The Auditor in Charge is Carl Lindgren, Authorised Public Accountant.
Mats Qviberg, born 1953.
Elected 2000.
Managing Director of Investment AB
Öresund. Chairman of the Board of
Directors of Hagströmer & Qviberg AB,
Fabege AB and Bilia AB. Board member of
Sapa AB and Johnson Pump AB
Shares: Including family, 32,400 B shares.
Bengt Larsson, born 1951.
Employee representative.
Staffan Berglund, born 1981.
Employee representative.
58 59

Financial information
and shareholders
Financial information
Swedbank
the company no later than 12 pm
SkiStar endeavours to maintain a high
Stefan Stjernholm
on Wednesday, 7 December 2005.
election. The Nomination Committee
operations. The issues addressed at the
Carl Lindgren. Those control issues
level of quality regarding the company’s
stefan.stjernholm@foreningssparbanken.se
Registration to participate in the Annual
submits proposals for the election of
Board meetings included the offer for
which are the responsibility of the
financial information. This will enable
+46 (0) 8 585 914 48
General Meeting shall be made in
members of the Board, accounting firm
and acquisition of Norway’s largest ski
Board of Directors are to be addressed
excellent understanding of SkiStar’s
writing to Kerstin Liljebäck, SkiStar
and proposals for remuneration to the
centre, the Trysil ski resort, the
by the Board in their entirety. In order
operations and build long-term
confidence in the company. SkiStar has
Reporting periods
Interim reports and the Year-end report
AB, 780 67 Sälen, Sweden, by e-mail to
bolagsstamma@skistar.com, by telefax
company’s Board of Directors. During
the year, the Nomination Committee
investment and profit budget, financial
statements, the year-end report and tax
to ensure that the Board of Directors
receives the requisite information, the
been awarded a number of prizes for its
during the 2005/06 financial year will
+46 280 218 50, or by telephone
was comprised of Erik Paulsson, Mats
issues. The Board of Directors’ formal
Auditor in Charge attends, in person,
financial information, including
be published as follows:
+46 280 880 85. Shareholders who
Qviberg, Mats Paulsson and Knekt
work plan contains rules and regula-
the Board meeting at which the Group’s
receiving an honourable mention
• Three-month report 1 September 2005 –
have registered their shares with an
Mats Olofsson.
tions for the division of responsibili-
annual accounts and year-end report
on several occasions in the ”Best
Accounting” competition, organised
30 November 2005, 20 December 2005.
• Half-yearly report 1 September 2005
authorised nominee must, in good time
prior to 2 December 2005, temporarily
The work of the Board of Directors
ties and duties between the Board of
Directors and CEO and instructions for
are discussed. The auditors report their
observations from their examination
by Stockholmsbörsen. The company
– 28 February 2006, 21 March 2006.
reregister their shares in their own name
Since the Annual General Meeting held
financial reporting. The formal work
and assessment of the company’s
was also voted “Listed Company of the
• Nine-month report 1 September 2005
in order to be able to participate in the
on 15 December 2004, the Board of
place is adopted annually at the Board
internal controls.
Year” in 1999, 2003 and 2004, a
financial information competition
arranged by the Swedish financial
– 31 May 2006, 20 June 2006.
• Year-end report 1 September 2005 –
31 August 2006, 29 September 2006.
Annual General Meeting.
Corporate Governance
Directors has been comprised of Erik
Paulsson (Chairman), Mats Qviberg,
Mats Paulsson, Olle Larsson, Eva-Karin
meeting following election. In 2004/05
TSEK 135 was paid to the Chairman
of the Board and the five other Board
Swedish Code of Corporate
Governance
publications, Dagens Industri and
General meeting of shareholders
Sjödin Dahl, Per-Uno Sandberg, and
members, who are not employed in the
SkiStar is not, at the current time,
Aktiespararna. During the 2004/05
General meeting of shareholders
A total of 244 shareholders entitled to
Mats Årjes (CEO). All of these members
company, in the amount of TSEK 105
covered by the regulations stipulated
financial year, SkiStar held one press
All shareholders are welcome to
vote were present at the Annual General
are elected for one year. Employee
each. A total of TSEK 660 (660) was
in the new Swedish Code of Corporate
conference and analyst meeting in
SkiStar’s Annual General Meeting of
Meeting held on 15 December 2004 at
representatives from the Swedish Hotel
paid during the 2004/05 financial year.
Governance. Despite this, SkiStar has
Stockholm in February 2005.
shareholders on Monday, 12 December
Berns in Stockholm. At the meeting,
and Restaurant Workers Union were
The chairman of the Board has also
followed many of the recommendations
2005 at 3 pm at China Teatern, Berzelii
the shareholders elected the members of
Bengt Larsson for the entire period,
submitted proposals for terms of remu-
stated in the Code for a long period
Analysts
Park, Stockholm. After the meeting,
the Board of Directors, resolved upon
Björn Håkansson until 31 March 2005
neration to the CEO, which were
of time. In 2005/06 the company will
The following analysts monitor SkiStar’s
SkiStar invites the shareholders and
dividends and authorised Board of
and Staffan Berglund for the period
subsequently decided upon by the Board
evaluate areas in which SkiStar do not
progress and development on a regular
other specially invited guests to an
Directors to decide upon the buy-back
thereafter. The Board of Directors held
of Directors.
completely follow the Code’s
basis:
après-ski at Berns. Shareholders who
wish to take part in the meeting
and sale of the company’s own shares.
seven meetings during the year for
which minutes were prepared. At least
Audit and control
recommendations.
Merrill Lynch
must be entered in the share register,
Nomination Committee
one meeting of the Board of Directors
At the Annual General Meeting of
Christer Beckard
administered by VPC, by Friday, 2
The company’s Nomination Committee
per year must take place at one of
shareholders held on 9 December 2003,
Christer_beckard@ml.com
December 2005, and have registered
is appointed by the Board of Directors
SkiStar’s destinations in order that the
KPMG were elected auditors of SkiStar
+44(0)20 799 608 24
their participation in the meeting with
annually at a Board meeting following
Board of Directors may acquire
for a period of four years. The audit is
satisfactory insight into the company’s
led by Authorised Public Accountant
60 61

Group management
Mats Årjes, born 1967.
CEO of SkiStar AB.
Employed since 2002.
Education: Master of Business Administration.
Shares: 114,452 B shares.
Karin Peterson, born 1967.
Market Manager.
Magnus Sjöholm, born 1960.
CFO, Vice CEO.
Employed since 1988.
Education: Master of Business Administration.
Shares: 140,684 B shares.
Markus Eriksson, born 1969.
Sales Co-ordinator.
Per Wester, born 1968.
Director of Sales and Marketing.
Employed since 2002.
Education: Master of Business Administration,
Henley.
Shares: 111,940 B shares.
Jocke Wahlsten, born 1962.
IT Manager.
Anders Landgren, born 1961.
Human Resources Manager.
Employed since 1982.
Education: Three-year upper secondary school
certificate.
Shares: 25,440 Class B shares.
Sten Danielsson, born 1949.
Property Manager.
Articles of association
Adopted 20 April 2004
Business name
§ 1
The company’s business name is SkiStar Aktiebolag, Corporate
Identity Number 556093-6949.
The company is a public limited liability company (publ).
Registered offices
§ 2
The Board of Directors shall have its registered offices in Sälen,
Malung municipality, Dalarna country.
Location of Annual General Meeting
§ 3
The General Meeting of shareholders shall be held in Sälen,
Åre or Stockholm.
Operations
§ 4
The activities of the company are, undertaken by the company
itself or by another company, the ownership and operation
of leisure centres, with a primary focus on alpine skiing, the
conduction of activities as a travel agent, and radio and TV
operations, as well as the ownership and administration of
property and securities, and other activities associated with
such operations.
Share capital
§ 5
Each share shall have a value of SEK 1.
Share capital shall be a minimum of SEK 15,000,000 and a
maximum of SEK 30,000,000. Of the company’s share a
maximum of 2,250,000 shares shall be A shares, with ten votes
per share and a maximum of 30,000,000 shares shall be
B shares with one vote per share.
If the company resolves to issues new A and B shares, on
the basis of a cash issue, the owners of A and B shares are
entitled to the preferential right to subscribe to new shares
of the same type, as a percentage of the number of shares the
holder had previously owned (preferential rights). Shares that
are not subscribed to by preferential right shall be offered for
subscription to all (subsidiary rights). If there is not enough
shares offered for subscription in this manner with subsidiary
rights, the shares shall be divided between the subscribers,
as a percentage of the number of shares that the subscriber
previously owned, and whenever this is not possible, the
shares shall be divided by ballot.
If the company issues only new A or only new B shares on the
basis of a cash issue, all shareholders, regardless of whether
they hold A or B shares, shall be entitled to the right to subscribe
to new shares, as a percentage of the number of shares
that they previously owned.
The information stated above shall not imply any restriction
in the possibility of resolving a cash issue with deviations from
the rights of the shareholders.
When share capital is increased on the basis of a bonus issue,
new shares of each share type shall be issued as a percentage
of the previous number of shares of the same type. In conjunction
with this, old shares of a certain share type shall entail the
right to new shares of the same share type. The information
stated above shall not imply any restriction in the possibility of
resolving the issue of new shares on the basis of a bonus issue
after the necessary change in the articles of association.
Board
§ 6
The Board of Directors shall, in addition to those Board
member who according to law may be appointed by another
individual, consist of four to nine members, with a maximum
of three deputy member. The members of the board and
the deputy members shall be elected annually at the Annual
General Meeting, to hold office until the conclusion of the
closing of the following Annual General Meeting.
Auditors
§ 7
One to two auditors, with one to two deputies, or a
registered public accounting firm shall be appointed by the
Annual General Meeting to examine the company’s annual
accounts and book-keeping and the administration of the
Board of Directors and the CEO.
Notice
§ 8
Notice of the Annual General Meeting shall be published in the
Swedish Official Gazette and in Dagens Nyheter.
Shareholders who wish to participate in the Annual General
Meeting shall be listed in a copy of the entire share register
regarding the circumstances ten days prior to the meeting, and
register with the company by 12 noon at the latest date stated
in the notice of the meeting, at which time assistance shall
be provided. This day may not be a Sunday, any other public
holiday, Saturday, Midsummer Eve, Christmas Eve or New Years
Day and may not fall earlier than the fifth working day before
the meeting.
Annual General Meeting
§ 9
An Annual General Meeting shall be held annually within
six (6) months after the end of the financial year.
The following matters shall be addressed at the Annual General
Meeting:
1. Election of chairman of the meeting.
2. Preparation and approval of voting list.
3. Approval of agenda.
4. Election of two persons to verify the minutes.
5. Consideration of whether the meeting has been properly
convened.
6. Presentation of the annual report and audit report, and
consolidated financial statements and consolidated
auditreport.
7. Resolution concerning the adoption of the income
statement and balance sheet and the consolidated income
statement and consolidated balance sheet
8. Resolution concerning the appropriation of the company’s
profit or treatment of losses according to the adopted
balance sheet.
9. Resolution concerning discharge from liability of the
Board of Directors and the CEO.
10. Determination of fees to the members of the Board of
Directors and the audit fees.
11. Election of Board of Directors and auditors and deputies,
if any.
12. Other matters, which arise at the meeting according
to the Swedish Annual Accounts Act or the Articles of
Association.
Voting right
§ 10
Each individual entitled to vote at the Annual General Meeting
may vote for the full number of shares that are owned and
represented, without any restrictions on the number of votes.
Financial year
§ 11
The company’s financial year shall be the period
1 September - 31 August.
VPC Company
§ 12
Those entered in the share register or records as per the
established record day, according to Chapter 3, Section 12,
Swedish Companies Act (1975:1385) shall be considered to
be authorised to receive dividends, issue certificates and, in
the case of a bonus issue, letters regarding new shares for the
shareholders.
Employed since 1990. Education: Master of
Employed since 2000.
Employed since 2004.
Employed since 2005.
Business Administration.
Education: University degree in tourism.
Education: Three-year upper secondary school
Education: Three-year upper secondary school
Shares: 628 B shares.
Shares: 400 B shares.
certificate.
certificate.
Shares: 3,500 B shares.
Debentures equivalent to 2,000 B shares.
Addresses
SkiStar AB (publ)
SkiStar, Sälen
SkiStar, Åre
SkiStar, Vemdalen
Hemsedal Skisenter AS
SE-780 67 Sälen
SE-780 67 Sälen
Box 36
SE-840 92 Vemdalen
Boks 43
Gamla Brogatan 11
Tel +46-280-880 60
SE-830 13 Åre
Tel +46-684-151 00
NO-3561 Hemsedal
SE-111 20 Stockholm
Fax +46-280-217 00
Tel +46-647-133 50
Fax +46-684-151 49
Tel +47-32 05 53 00
Tel +46-280-880 50
www.skistar.com
Fax +46-647-133 60
www.skistar.com
Fax +47-32 05 53 01
Fax +46-280-218 50
www.skistar.com
www.skistar.com
www.skistar.com
Jonas Mareniusson, born 1953.
Resort Manager, Sälen.
Employed since 1978.
Torgny Svensson, born 1950.
Resort Manager, Vemdalen.
Employed since 1986.
Niclas Sjögren, born 1969.
Resort Manager, Åre.
Employed since 1989.
Trond Østby, born 1952.
CEO of Hemsedal Skisenter AS.
Employed since 1997.
Production: SkiStar AB
Art Director: Mikael Falk.
Copy: Magnus Sjöholm and Anna Lindstedt.
Photography: The photograph archive from the ski resorts. Portrait pictures: Sven-Gunnar Liljebäck and Lina Edvinsson.
Printing: Prinfo Avesta Offset, Avesta 2005.
Education: Secondary school leaving
Education: University degree in tourism.
Education: DIHM Diploma in Marketing
Education: Certified economist
examination.
Shares: 15,196 B shares.
IHM Business School in Stockholm.
Shares: 20,724 B shares.
Shares: 103,794 B shares.
Shares: 9,284 B shares.
62 63

SkiStar AB (publ) Corporate Identity Number 556093-6949. SE-780 67 Sälen. Tel +46 (0) 280 880 50. Fax +46 (0) 280 218 50. E-mail: info@skistar.com • www.skistar.com
64