Thank you for that introduction, and warm welcome everyone to this quarter presentation for Q3 25/26. The agenda for today is that we will go through a bit of the third quarter performance, we will go through a financial update, and then we will guide you through a bit of an outlook and the summary.

Let's start with the Q3 performance. Before I just jump into the numbers, I just really would like to highlight again that we SkiStar is a market leader for the Scandinavian mountain holidays.

We are running six destinations in Sweden and Norway. We have a market share of 42%.

We are really proud of our integrated business model, where we have the digitalization as a driver and an enabler. We are also really proud of our significant land bank for property development, and we will take you through that as well later on.

If we jump into the third quarter, we present net sales with a 5% increase. We we have a lower operating profit with 8% decrease.

If we exclude the exploitation gains, we can say we have a par result compared to last year, and our operating margin stays at 24% compared to 25% last year. As we mentioned in the second quarter report, we had a very challenging booking situation in the end of the season.

That's why we also decided to go for a lot of activities, price campaigns, marketing activities, and unfortunately that didn't pay off as we expected. That's why we also that costed a bit on the margin since we lower the prices, and it costed also a bit on the cost side with the marketing efforts.

We could also see that we had a decrease of skier days sold in the period as well. If I summarize, you can say that we had a good growth in in line with our financial goals, but we are not satisfied with the result.

We also have taken some actions going forward to secure that we can have a more stable result development also Q3 going forward. I would also like, since we are summarizing the winter season, I would like to also talk a little bit about the accumulated result.

Here we can say that we have a 7% increase on the top line, we have a 5% increase on the profit operating profit, and if we then compare without exploitation gains, we actually increase the result with 8%. Also, we we deliver a very stable result here, we must admit.

We increase the skier days with 0.5%. However, we have this hesitant real estate market, and we have said that since we have this hesitant real estate market, we also can see that we have had zero income and profit from real estate market the first nine months.

Also the outlook for the real estate market isn't on on top as it was in the good old days. We are saying that we will most probably land on the same level as we did last year with a property with the real estate gains.

However, if I look into the first nine months, we have increase in all revenue streams. It's very it is actually still strong demand for mountain vacation.

We can see that we continue to increase the number of international guests. We have put a lot of effort in in investments for this year, and we can see that we have an increased level of guest satisfaction.

That help us to have growth in all revenue streams, actually. We will continue to invest in this, especially to secure a good customer experience development.

Again, the international guests, they are a drive for us to increase the revenues. They now stands for 40% of the total bed occupancy rate.

The most important with the international guests, I must say, is that they buy this long ski passes, six to eight days, and they do it long time in advance. They also book more, they book the full package, to say, and they do it in in long time in advance, everything actually.

It's also very good that the peak weeks differs also from you can say the the Swedish guests, which is of course good that we can filling out more weeks and work with the capacity in another way. Also, they are increasing over time as well.

We are really proud that we have improved our guest experience this year. We have invested in best better ski experiences.

We have done that in wider slopes, we have done that in actually more snow guns, we have done it in more lifts. We have invested in better accommodation experience, and we have taken large help from AI as well.

When the customer had contacted us, we have really had good help from AI, and that has speeded up the answers to our guests, which has been very helpful. We're also very proud that we have invested in the ski pass price differentiation.

That has helped a lot of customers to also choose other destinations and maybe or also destinations with a more value for money ski passes. We are really proud to have the lowest ski pass in the in the mountains actually to to for our guests.

Then also more precise governance around the KPI around the NPS values. We work very hard with that across the whole organization to secure that we continue to improve our guest experiences.

I think sometimes we didn't don't talk enough about our integrated business model, because skistar.com is a fantastic engine, because we own this distribution channel and we are not dependent on any other distribution channel. I think many others are jealous that we can own this distribution channel, because this help us with a diversify diversified revenue streams, it help us to have this dynamic pricing model, it help us to have a lot of different guest interaction, and also help us to collect a lot of customer data, which is enable us to be much more specific in our tailored sales.

This integrated business model also help us to improve and also expanding our customer offer to define and find new revenue streams. This is one example, and this is taken from our development of our retail business.

We have had a very solid development of the retail business. We have a CAGR of 11% since 18/19.

The last couple of years, the development has been really significant strong, and specifically with our own brand, EQPE, with the last quarter grown 30% actually. Really, really strong development of of EQPE brand.

We also have this significant land bank, and the land bank enable us to have an organic growth within our company, because we can both continue to develop ski areas, and we can also continue to strengthening the destinations' ecosystem. By doing that, that would also help us to develop the whole destination in a way where we control the development more or less, and we can also develop the destinations in areas where we really want to steer the guest flow, to say, since we have this control of the also ski areas.

By to have the integrated real estate development model, we can also create value through the property development, and it also drives growth. This year, we open up new beds in the next fiscal year, sorry, 26/27, we open up 600 new beds in Sälen, where we have seen a potential to grow with a more beds as an example.

That is helping us to grow with own beds, and we do it with warm beds, and we do it in the integrated ecosystem, which is of course very strong within our business model. We continue to enhancing capacity and guest experience.

This year, we had this investment in the gondola in Trysil, we had the new ski area in in Vemdalen, Hovde Syd, we have lighting projects, and we continue to invest to really secure that we're enhancing the guest guest experience among our ski destinations. I think we are proud of this, and we continue to be forward-leaning in all these actions.

Sara, I hand over to you to talk a little bit about the financials now.

Thank you, Stefan. If we start with the net sales development, it has been fairly good, and the tables show the net sales development last 12 months that amount to 7.3%.

The Q3 net sales during Q3 was 5%, and accumulated Q3 was 7%. Of course, as Stefan mentioned, the net sales development during the third quarter has been not slow, but a bit less than expected.

If we continue with explanation on net sales development, in total, if we exclude effect from currency, the revenue growth was 8% in comparison with last year. We have had increase in all our revenue streams.

If we start with ski pass, the ski pass effect was 6% in total, where the price and mix effect amount to 5.5% and the volume was 0.5%. Accommodation was up 6.2%, where price and mix amount to 4.2% and the volume growth was 0.2%.

As you remember, we acquired Topphytta, which is Högfjällshotellet in Sälen in May last year, and we've had, of course, an increase in revenue that relates to the acquisition. That is included in accommodation, but also in restaurants.

We've had a fairly high increase in restaurant, 36%, but the majority of the growth relates to the acquisition of Högfjällshotellet. We've had growth in ski rentals, in ski school, and not the least, sport shops that was up 13 13.7%, and it was driven by a strong growth related to EQPE, our own brand.

If we continue with operating profit, and the operating profit development last 12 months was the margin was 17% and the amount was 836 million. During the period September to May, the operating profit was 1.1 billion SEK.

That was an increase in comparison with last year that amount to 5%. If we exclude exploitation gain, the increase was 9%.

Just to remember, we've had no property transaction during the period. We expect to have transaction during the fourth quarter that amount to more or less the same level as last year.

The underlying operation has been solid during the quarter, but we've also had positive impact that relates to one-off items. I will explain those later on.

If we take a look on the development per category, and in comparison with last year, no, we haven't had any property transaction during the quarter. The mountain operations has been positively impacted by ski pass revenue growth.

We've also had increased costs due to higher energy and fuel prices and higher consumption, and we've also had higher costs that relate to maintenance and repair. We try to improve or increase the volume related to both ski pass and accommodation, we have spend more marketing during the quarter to improve the bookings.

The operating profit has had a positive impact that relates to an insurance compensation of 11 million SEK, and that relates to the bridge in Vemdalen that was demolished. If we take a look at the SkiStar Shop and Rentals, the growth has been strong both on online sales and physical stores.

We've also had a positive impact that relates to an adjusted inventory value of 21 million million. The acquisition of Högfjällshotellet has had a positive impact on the operating profit that relates to hotel.

Property management has had an increase in operating profit, but that is related to income to other segments, it's internal income. We have also adjusted or transferred some costs to mountain operations that relates to cleaning and airport fee, etc.

In total, the operating profit development, excluding exploitation gain and currency, was up by 9%. If we move on to cash flow and CapEx, the cash flow from operating activities last 12 months was 1.2 billion, and it has been positively impacted by improved profit.

CapEx has been fairly high, and that is related to several significant investments that was made ahead of the winter season, where the gondola in Trysil stand for the majority of the amount. The CapEx during the quarter, the third quarter, amounted to 77, which is a decrease in comparison with the third quarter last year.

Year-to-date, CapEx amount to 427. Net debt to EBITDA structure is very low, 0.9, and it is a fairly high or huge headroom in comparison with our financial target of 2.5.

The financial preparedness as of 31st of May amounted to 1.7 billion, which is a high increase in comparison with last year, and that is due to the refinancing that was made in June last year. Interest-bearing liabilities, both included and excluded IFRS 16, has decreased during the quarter.

Yeah. The financial KPIs, if we start with return on capital employed, has improved and amounts to 11.3%.

Equity to asset ratio has also improved and was 52. If we exclude IFRS 16, the equity to asset ratio was 67, and last year, the number was 64.

In summary, the financial targets, if we start with the revenue growth, it has been a fairly high or a satisfactory revenue growth that amounts to 7.3% last 12 months. The operating margin has stand on more or less same level as the last financial year, it amounts to 17.

We expect the margin to improve going forward as, and it will driven by revenue growth and operational efficiency, and I will come back to that. The net debt to EBITDA was 0.9, and as I said, a quite high headroom in comparison with our financial target.

If we talk about the operating margin, we did expect the margin to improve going forward. It's a combination of addition efforts to further improve our guest experience, but not the least, initiatives that has already started that will improve our ability to use our resources better going on.

It's related to staff scheduling, combined duties, initiatives that relates to investment and purchase processes, economies of scale, etc., etc. Those together will improve our margins in the future.

Thank you, Sara, and I will now try to guide you through a little bit of the outlook. I will start with the summer period where we have the next or upcoming months in front of us.

Here we have been working now for a couple of years to develop the year-around offer, and we have been working with winter for more than 50 years, and this is the fifth summer season where we work with this year-around offer. We try to take small steps all the time, and this year we have been very successful to launch this family passes and also bundle different type of activities where we include different type of packages.

We also have a soccer tournament in Sälen for the first time. We will see that the bookings are up 3%, which is of course very good.

We could also see that the presale of different type of packages has been very successful. We are gladly looking forward to the summer.

What's happening at our destinations during the summer also is that all investments for the next or upcoming winter season happens right now. Here we have earlier sent out the message that we will invest heavily in snow production, and that means that we will offer the most snow guarantee, and we will do that by investing this snow production.

That will be by increased water capacity, we will have close to 500 new snow guns, we will have a new ski lift in Åre, and also we will continue to invest this with artificial light to prolong opening hours as well that we will prolong and make a much better guest experience. Really glad that we have decided to take a large grip also on our largest destination, Sälen, where we will continuously talk about even more new events happening and concepts in Sälen going forward.

If I then look into the winter season, so as we have mentioned in our quarter report, there is a strong demand for the winter holidays, and it's also prioritized among families. We can clearly see that, and we're also very glad to see that the bookings are up 3%.

We were a little bit surprised by this strong number, actually. We had in our second quarter plus minus zero, and now the last couple of weeks, the booking has had a very steady growth every week by week.

We believe that one of the reason for this is that the launch of the Scandinavia's most extensive snow guarantee will be one of the real reasons for that, because we will offer something completely unique in Scandinavia by offering this snow guarantee, and also possibility for our guest to cancel or rebook even up to close to the stay. We feel very confident in this guarantee since we are investing so heavily in the snow production.

We also have a very strong Christmas and New Year calendar this year with an extra week 53, where we will gain extra ski days for sure. Then the early Easter, week 12/13, means that we will also work very adjustable with the end of the season connected to how we will have opening hours, etc., and that will also help us, according to what Sara just spoke about, with the scheduling and also how we will combine different type of roles within our staff.

Price increases: we will increase the lodging prices fairly 0 to 1% as we want to become even more attractive in the lodging prices, and we will have a ski pass increase for the upcoming season 4 to 4.5%. We will also continue to launch and have the lowest price in the Scandinavian mountains on ski passes.

We will add an extra low price ski pass this year with Duved, and that will of course be complemented by the last year's success of Klövsjö/Storhogna and Sälen, Högfjällshotellet. Some really good price ladder with really good low-price alternatives for those consumers who wants to go for that alternative, as well as the ones who wants to go for the full scope.

If I summarize where we are right now, we can see that we have a very stable development that also enable us for further revenue growth as well as improved margins. I think we have some really good learnings this quarter that we have to work much more with flexible cost and also look into our cost side, which we are doing and has been doing the last two months in a good manner actually.

We also continue to invest, like Sara also said, to strengthening our guest experience and satisfaction. We can see that it's really pays off.

One really important part of that is of course to launch this best and most extensive snow guarantee within Scandinavia. We still see a hesitant real estate market, meaning that we see a much slower development as we have thought compared to how it was in the past, meaning that we will say that we will most probably coming in in the numbers like we did last year in that size.

Then lastly, but not least, we see a strong demand for mountain vacation, plus three in booking both for the upcoming summer as well for the winter season respectively. By that, we open up for Q&A.

Hi, good morning. Just a first question.

Your OPEX base has grown quite a lot this fiscal year so far. Could you give us some color on this, just how much is temporary and how should we think about the run rate, just what you can do to improve scalability short term?

I missed actually the first part of the question, Alice. Sorry, please repeat the question.

No worries, I'll repeat. Your OPEX base, your costs, have grown quite a bit this year.

Could you just give us some color on the OPEX costs and how much of this is temporary, and how much you think about the run rate? Just what can you do to improve scalability and reduce costs?

Yeah. I can try to answer that, Alice.

During the quarter, we've had temporary increases that relates to fuel and electricity. I guess some of the reason may be the geopolitical situation, where we have seen increases in both especially relates to electricity.

The costs has also been impacted by volume. It was very cold in January and February, the consumption that relates to electricity was also high.

Some of the increase that relates to electricity is related to temporary price and temporary volume, I would say. When it comes to fuel, we have had very high prices that relates to HVO100 that is used for more or less all vehicles.

The price increase was more or less, you have the number.

29 kr per liter the last month of April, which of course is impacting us heavily, even if it was just 1 month, April. In March, we paid 25 SEK per liter.

Of course, that impact us heavily in the quarter. I think that's one of the reason.

Like Sara said, we are also hedging electricity on our expected levels, but since we had an increase of electricity use during this cold period, we had to buy electricity on the free market, and of course that costed us extra much this quarter more than we expected.

If I continue, we also had higher cost related to marketing activities, both related to the possibility to improve or increase the sales for ski pass and accommodation. The efforts didn't pay off, actually, I would see that cost or that spend as a temporary one.

We also had high marketing spend that relates to our online business in retail, and those are expected to slow down or decrease going forward.

That is what happened during the quarter. If we then look forward, we are now since two months back working on our cost situation, and both from a staff perspective, but as well on purchasing activities.

I think this staircase we showed on the slide, which we call initiative to reach our financial targets, if you look into the middle part of that, when we say efficient resource allocation, that is something we are working with right now, and we also expect that we are coming in to our next fiscal year 26/27 on a new level from a cost perspective, which feels very comfortable going forward.

The efforts that relates to the combined duties, the scheduling of staff, that will mean that we actually reduce number of employees or FTEs. It's a combination of temporary resources and other resources or employees, in total we have a fairly high number of employees that will be reduced.

We have a number of initiatives that will improve the cost base going forward.

Perfect. Thank you for that answer.

Moving on then, hotel sales are growing quite a bit, while mediated accommodation did not this quarter. Is this a deliberate shift, or are you seeing an organic change in demand from normal accommodation to hotels?

Again, Alice, sorry. Can you please repeat the question?

I think we need to increase the volume here as well.

You talk about increase in net sales on ski pass, is that?

Hotel sales.

Hotel, yeah.

Quite a bit.

Yeah.

Normal mediated accommodation did not. Is this a deliberate shift, or is this an organic change in demand?

No, that relates to hotels, then of course we've had an impact or effect from the acquisition of Högfjällshotellet. That has impacted, of course, the volume and the revenue that relates to hotels.

Then

if we look into the accommodation, we lowered the price quite heavily during the third quarter, also tried to trigger consumers to book and so on, but I must say all the efforts we did by increased marketing, lower the price on accommodation, lower the price on ski passes didn't pay off at all. Unfortunately that was wasted money more or less, I must be honest to say.

Thank you. Moving on, could you talk a bit about the rationale behind closing Vemdalen for the summer, despite this 3% higher bookings for the summer?

Absolutely. If we look into what's happening in the market, you can say when we decided to go for a full scale of summer activities, we decided to continue the development of Åre, where it started already actually in around 2007 in small scale.

So Åre has been very successful in driving summer activities. When we decided to go all in for summer, we decided to continue Åre, let's go for Trysil, let's go for Sälen.

We did that the first two years, three years, and then we said let's add Hemsedal and Vemdalen. Unfortunately, we don't have the number of guests enough to run five resorts in the summer.

That's why we have decided to not run this climbing park as well as the lift in Vemdalen for the summer, we still have openings for possibility to book overnight there, but and also buy clothing in our store, etc. That has been important to keep open.

As well, we do the same in Hemsedal, we also have limited opening times, etc. We go full and all in in Sälen, Åre, and Trysil, because there we see that there is possibilities to drive this summer activities in full scale more or less.

Perfect. Then you said that 30% of the upcoming winter accommodation is already booked.

Could you provide some context here? What is an average booking rate for this point in time?

We say around 30%, we are 30% plus. We're a little bit above last year since we have this 3% increase, we are on the quite same level.

What I think is important is that we had added number of beds, both this 600 new beds in Sälen, and we have also added Torghotellet in Åre, of course. If we then say that we are plus 3%, of course it's on a very good level, I must say, a very stable level.

If you look into the number of booked overnights, it's on actually fairly high level, probably the highest level we had had since the pandemic.

Great. I think that was all for me.

Thanks. Thank you.

Yes, good morning Stefan and Sara. A couple of questions from me as well, please.

You mentioned the insurance claim that you got payback on and the reversal of the rental equipment accrual that you have done. I guess these are more timing effects, or how should we see them?

I guess you had the insurance cost at some stage, and you also had done the accrual at some stage. Could you elaborate a little on how the timing of these things works?

We wasn't sure when we were supposed to receive this insurance contribution, but that took place now in the third quarter. It has been recognized in other income.

When we actually rebuilt the bridge, it will be recognized as an investment and included in CapEx. We need to treat those transactions as two separate ones, it will impact CapEx going forward.

I guess to say the first or second quarter next year. I'm not sure about the number, but it's roughly the same

or a bit

higher amount,

to

say 20.

Roughly the same number,

yeah,

yeah. Then also this, it's exactly like you asked.

We weren't sure when that insurance money would come actually, and now they came a couple of weeks ago, they gave us some positive numbers, of course.

It should be seen as a one-off item, as it has impacted the profit and loss, and of course it will be impacted as a depreciation, but the transaction will be treated as an investment.

The other question was around the ski rental?

Yeah. We have adjusted the inventory value that relates to equipment, rental equipment.

That is also a one-off item, but this level effect will be seen going forward as well, but not in one quarter. It will be for a whole year next year, the level effect will stay.

If you carve out those two,

it's around 5--

Sorry?

No, sorry Stefan.

No, if you carve out those two items, I think we are on the expected level from the expected result this quarter more or less, you can say. Those are two one-time positive effects on the quarter result, of course.

I guess at least with the rental equipment you must have over-accrued then in previous quarters. Maybe if you look at it just over the full year, then it doesn't really matter, does it?

So.

No, correct. Correct,

that's correct.

Totally correct.

That was in Q1

and--

Sorry. Then

on the other side, you mentioned earlier the extra marketing costs and the higher HVO100 costs and these kind of things. Are these numbers basically matching against what you now have as these positive one-offs in the quarter as you see it?

If you take say the negative one-offs you had in the quarter, we are basically on a lower level on the total.

That is a fairly good assumption. Absolutely, Carl.

I remember in Q3 last year, with a late Easter, you had the problem ramping down the operation in an efficient way. It looks like you have been able to ramp down much more efficient already this year.

You mentioned that as an opportunity for next year, or am I over-reading things? No,

you are right, but we are still not satisfied with that ramp-down, to be honest. That's why we have decided to be even lighter, to say, for next year, because we have too much fixed costs where we are sitting in yeah.

Our business model and full opening makes us very vulnerable when the volume decrease like it did in the third quarter now. That's why we have decided to try to keep us a little bit lighter and work much harder with this combined duties with the scheduling, etc., to have a smoother operation, to say, going forward.

That's something we also now have the organization backing up, even though it's of course tough when you need to do it, but it is helpful going forward.

Excellent. When you look at the already good booking situation for the next high season, the 3% increase, how do you see the mix there developing when you're looking at international demand compared to local demand?

We continue actually to be on a quite stable development of the international guests, they are on the quite same levels. It is actually the Swedish guests who is coming back now, they are standing for the increase of the booking.

Which is very gladly to see that the Swedish guest is returning back now since a couple of years of maybe reluctant, since we have had high cost of interest rates, high cost of energy, and high cost in general in the society. We can also see that the consumer confidence is coming back in Sweden, and I think this is a result of that where we see the strong booking numbers.

Excellent. One final, looking at the CapEx budget going into 26/27, do you see that being in absolute say in kronor, on an unchanged level compared to what you see in this year, including all those investments you detailed?

Yes, I would say that the level will be more or less the same, and that is of course related to the investments in snow production that will sort of keep the level a bit higher than usual, yeah.

Excellent. Thank you very much, and all the best out there.

Thank you.

Thank you.

Stefan here. Can you hear me?

Yes. Yeah.

A question on the next winter, given that Q3 did not really meet your expectations. You talked about doing adjustments for the ramp-down of the destinations, but what else can you do differently for next season?

No, but

I think what I tried to explain is that we are working on our fixed cost situation. We have built up too heavy organization, that's why we want to become lighter more or less, it will be on staff.

Then we are also identified a lot of different type of purchasing projects, how we want to do different type of purchasing. Like many other companies, we are also reducing costs and looking to our total cost situation, which has been important to do for us, because we really want to secure that we will not be as vulnerable as we became in the third quarter this year.

We had to be able to adjust. We will also work much more with the opening hours and opening time in the end of the season, which meaning that we will have a different plan how we are running our ski resorts.

We will open first and we will close latest as we have done, but it will differentiate between the destinations. We are working quite hard on that scheduling as such, meaning that we will be much more efficient as a totality, I can say.

Thanks. My other questions have already been answered, thank you.

Thanks.

Thank you.

Thank you so much for listening to us today. Also, thank you so much for very good questions making us try to explain even more about our quarter result.

By that, we are wishing everyone nice Midsummer if you are in Sweden and of course everywhere else as well. Enjoy now the time outdoors, because we would like to do that and going to the mountains and enjoy hiking and biking.