Annual report 2004/05

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..
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