Annual report 2004/05

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