INTERIM REPORTSEPTEMBER - NOVEMBER 2016

SUMMARY, SEK MILLIONS 3 MONTHS 1 Sep-30 Nov

FULL YEAR 1 Sept–31 Aug

2016/17 2015/16 2015/16

Revenue 117 82 1,991

Operating revenue 119 83 1,999

Profit/loss before tax -263 -239 386

Profit/loss after tax -207 -182 306

Earnings per share, basic and diluted, SEK -5.15 -4.64 7.82

Cash flow from operating activities 140 165 521

Operating margin, % neg neg 22

Equity/assets ratio, % 39 36 46

GOOD BOOKINGS AND EARLY START TO THE SEASON First quarter• Revenue for the first quarter was SEK 117 (82) million.

• Profit/loss after tax was SEK -207 (-182) million.

• Earnings per share, basic and diluted, amounted to SEK -5.15 (-4.64).

• Consolidation of St. Johanner Bergbahnen GmbH has had an effect of SEK -12 million on profit after tax in

the first quarter 2016.

Further information is available from:

Mats Årjes, CEO +46 (0)280 880 80

Magnus Sjöholm, CFO +46 (0)280 880 90

Early snow and cold have enabled us to open

all our ski resorts earlier than in the previous

year and everything is in place for good skiing

conditions over Christmas and the New Year.

Bookings for the next winter season are 1

percent higher than at the same point in the

previous year. Bookings for Christmas week

are slightly down due to fewer days off, while

bookings for the weeks between New Year and

the winter break, and the winter break itself,

are up on the previous year. The period after

the winter holidays shows a decline in bookings

as a result of the late Easter, which means later

booking patterns. We should also bear in mind

that last year’s bookings at the same point in

time were the strongest ever. About 80 percent

of the season’s estimated accommodation sales

have already been booked.

The modern new Skihytta Express chairlift in

Trysil is opening soon. The new lift will signifi-

cantly improve our Trysil guests’ comfort and

experience. For the 2017/18 season, we have

decided to build a new gondola lift in St. Johann

with snowmaking systems at adjacent slopes for

a total of EUR 17 million. The investment brings

St. Johann a greatly improved ski product for

beginners, children and more advanced skiers.

We still await a positive decision from the EU

concerning public funding for Scandinavian

Mountains, the airport between Sälen and

Trysil. The schedule for the first planes to land

in December 2018 remains unchanged.

We confidently look forward to another good

winter season at our destinations in Sweden,

Norway and now Austria as well.

Mats Årjes

Chief Executive Officer

COMMENTS FROM THE CEO

INTERIM REPORTSEPTEMBER - NOVEMBER 2016

2

First quarter

16/09/2016SkiStar Business launching in NorwaySkiStar Business is a success in the Swedish

group and conference market. Now SkiStar is

introducing its business concept in Norway too.

The goal is to offer Scandinavia's best and most

productive conferences, with high quality, great

service and fantastic meeting venues.

15/09/2016More adventures for children and young people feature in SkiStar’s news for winterSmart cameras that capture your jumps in

the snow parks on film, Valle’s ski school for

children and day care in the mountains. These

are some of the news items from the ski tour

operator SkiStar for the coming winter season,

with a focus on young people and health.

06/10/2016SkiStar launches a destination in the Alps – St. Johann open for bookingsSkiStar is launching its first destination in the

Alps at St. Johann in the Austrian Tyrol, which

can now be booked online at skistar.com. The

venture is the first step in establishing the ski

tour operator in the Alps. Guests can now pre-

book hotel accommodation and SkiPasses at

skistar.com just like for our Scandinavian ski

resorts.

12/10/2016Snowman Valle encourages families to book skiing holidays in JanuaryMore and more families are discovering the

opportunity for skiing between the Christmas

holidays and the winter break. Bookings during

Valle’s Winter weeks in January have increased

by 20 percent in just one year, according to

new figures from SkiStar. One explanation is

that Snowman Valle’s ski school for children is

included in the winter weeks this winter.

13/10/2016Sharp increase in active conferences in the mountainsConference trips to the Swedish mountains

are increasing sharply. Bookings with SkiStar

Business for the winter are already 25 percent

above last season. In Åre, which has long been

a popular ski conference location, demand has

increased by almost 300 percent.

07/11/2016SkiStar opens for skiing in optimal weath-er conditionsSkiStar opens three of its five Scandinavian

ski resorts on Friday 11 November. Vemdalen,

Trysil and Hemsedal are first off the mark.

Weather conditions are optimal, with abundant

snowfall at the Scandinavian ski resorts during

the past week, and the cold temperatures are

conducive to snowmaking. Booking demand for

Christmas holidays is currently high.

09/11/2016 Two Radisson Blu Resort hotels for TrysilOne of Norway’s best resort hotels, the Park Inn

Mountain Resort Trysil, is being upgraded and

will be renamed Radisson Blu Mountain Resort

& Residences. From this winter, Trysil will be

able to boast two fantastic Radisson Blu Resort

hotels on either side of the mountain, with

ski-in ski-out locations that give direct access

to Trysil’s modern ski area comprising some 70

ski slopes.

10/11/2016Closer link from London to Vemdalen and Åre this winterThis winter, ski enthusiasts can travel direct to

the ski resorts of Åre and Vemdalen from the

UK capital London. On Sunday 11 December,

easyJet, the UK’s largest airline, starts its direct

service to Åre/Östersund airport from London

Gatwick with departures every Sunday. A

reasonably priced shuttle service from the

airport to Vemdalen is also now available. This

service was previously only available to Åre.

The services significantly shorten travel time for

Londoners who want to spend time in the Swed-

ish mountains this winter.

11/11/2016SkiStar opens skiing in Åre and SälenSkiStar will open its slopes and lifts in Åre and

Sälen next weekend. Abundant snowfalls in

the country have created keen interest in ski-

ing in the mountains and booking demand for

SkiStar’s ski resorts is high. The snow that has

fallen over much of Sweden during the week is

an early Christmas present for people who like

winter games and skiing in the mountains.

18/11/2016New Sifo survey: Two out of three Swedes prefer an active holidayHolidays now mean more than lazy days – two

out of three Swedes (66 percent) want to be

physically active when travelling in winter.

These were the findings of a Sifo survey con-

ducted in the lead-up to the winter season on

behalf of the ski tour operator SkiStar.

After the end of the period

02/12/2016SkiStar opens skiing at the Austrian ski resort St. JohannThe time has come to open for skiing at

SkiStar’s new ski resort St. Johann. SkiStar

developed and improved the snowmaking facili-

ties at the Austrian resort in preparation for this

winter. These improvements and the recent

cold period mean that the resort will be opening

on Thursday 8 December.

07/12/2016.Nordea, SJ and Löfbergs in new partner-ships with SkiStarSkiStar presents three new, long-term partners:

Nordea, SJ and coffee roaster Löfbergs. As part-

ners of SkiStar, they gain unique exposure to

almost two million holidaymakers. In particular,

the partnerships will have a high profile in Åre,

Sälen and Vemdalen, the three major ski desti-

nations in Sweden.

A complete list of press releases can be found

on skistar.com.

SIGNIFICANT EVENTS DURING THE FIRST QUARTER AND AFTER THE END OF THE PERIOD

3

First quarterSkiStar’s business is highly seasonal and earn-

ings are always negative in the first quarter,

when operations are conducted to a very limited

extent. Revenue for the first quarter increased

by SEK 35 million to SEK 117 (82) million. The

increase was due to an earlier start to the winter

season this year, additional revenue from St.

Johanner Bergbahnen GmbH and increased rev-

enue from interests in accommodation/exploita-

tion assets. The Group’s operating profit/loss

declined by SEK 28 million to SEK -257 (-229)

million. Operating expenses increased due to

large amounts of snow having been produced

in the early cold weather, which is expected

to result in lower costs for snowmaking in the

second quarter. The arrival of St. Johanner Berg-

bahnen GmbH in the Group has had an adverse

impact of SEK -16 million on operating profit.

Like SkiStar, St. Johann has seasonal operations

and the company will make a positive contribu-

tion to SkiStar’s operating profit in the second

and third quarters. Operating expenses also

increased due to advertising expenses of SEK 5

million, which were recognised in the second

quarter in the previous year but in the first

quarter this year. Exchange rate changes had

an adverse effect of SEK 4 million on operating

profit compared with the previous year. Sales of

shares in tenant-owner associations and Vaca-

tion Club in the quarter generated revenue of

SEK 18 (13) million and a gain of SEK 5 (9) mil-

lion. Revenue from the sale of plots amounted

to SEK 12 (3) million, with a profit of SEK 7 (2)

million. Net financial items improved by SEK 4

million to SEK -6 (-10) million due to a positive

change of SEK 5 million in the value of interest

rate derivatives.

SeasonalitySkiStar’s operations are subject to significant

seasonal variations. The majority of revenue

and earnings are generated in the second and

third quarters. The number of days off during

Christmas and New Year and whether Easter

falls early or late also cause revenues and earn-

ings to vary. Over half of the revenue is booked

and paid in advance.

REVENUE AND EARNINGS

DISTRIBUTION OF REVENUE, SEK MILLION

3 MONTHS 1 Sep–30 Nov

FULL YEAR 1 Sep–31 Aug

2016/17 2015/16 2015/16

SkiPass 9 2 1,040

Accommodation 5 4 243

Ski rental 2 1 158

Ski school/Activities 0 0 57

Sporting goods outlets 21 14 129

Property services 17 14 100

Interests in accommodation/exploitation assets 30 16 91

Other 33 30 173

Total 117 82 1,991

4

FINANCIAL POSITION, TAXES AND INVESTMENTS

Cash flowCash flow from operating activities before

changes in working capital was SEK -229 (-186)

million for the first quarter. Cash flow from

investing activities was SEK -74 (-213) million,

while cash flow from financing activities was

SEK -75 (43) million.

Liquidity and financingConsolidated cash and cash equivalents at

the end of the period were SEK 87 million,

compared with SEK 93 million at the end of

the financial year and SEK 19 million at the

same point in the previous year. Unused credit

amounted to SEK 456 million, compared with

SEK 184 million at the end of the financial year

and SEK 315 million at the end of the first quar-

ter of the previous year. Net interest-bearing

liabilities amounted to SEK 1,706 million, a

decline of SEK 47 million since the end of the

financial year and a decline of SEK 60 million

compared with the same point in the previous

year. The average interest rate during the year

was 2.9 (2.5) percent. Net financial liabilities

amounted to SEK 1,495 million at 30 November,

a decline of SEK 52 million since the end of the

financial year and a decline of SEK 9 million

compared with the same point in the previous

year. The equity/assets ratio improved to 39

(36) percent.

TaxTax income for the first quarter amounted to

SEK 56 (57) million, and was largely attributable

to utilisation of tax values in the quarter’s loss

carryforwards. Tax income has been negatively

affected by a lower income tax rate in Norway

and tax adjustments from prior years. Accumu-

lated loss carryforwards in the Swedish opera-

tions amounted to SEK 604 (790) million.

InvestmentsInvestments in the quarter totalled SEK 104

(229) million gross and SEK 74 (213) million

net. Depreciation and amortisation in the same

period amounted to SEK 55 (49) million. The

investments were mainly related to Trysil’s

6-chair lift and snowmaking systems, and

reinvestments.

Prior to 2016/17The skiing season has started unusually

early and all ski resorts had opened by mid-

November. The early cold spell has enabled a

large proportion of the winter snowmaking to be

completed in November. Advance accommoda-

tion bookings for the 2016/17 winter season

have declined by 1 percent compared with the

previous year. The sales value of the bookings

was SEK 604 (567) million. Almost 80 percent

of the year’s estimated accommodation sales

have already been booked. A late Easter means

later booking patterns. Investments of SEK

373 million have been decided on prior to the

2017/18 season and include a new gondola with

snowmaking systems in the adjoining slopes of

St. Johann, and reinvestments at all destina-

tions.

2016/17 2015/16 2014/15

Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2

Revenue 117 116 678 1,115 82 82 678 1,076

Operating profit/loss -257 -159 291 537 -229 -149 240 532

QUARTERLY VALUES, SEK MILLION

REVENUE OPERATING PROFIT/LOSS

0

200

400

600

800

1000

1200

Kv 4Kv 3Kv 2Kv 1

2015/16 2014/15 2013/14

-300

-200

-100

0

100

200

300

400

500

600

Q 4Q 3Q 2Q 1

2015/16 2014/15 2013/14

5

OTHER INFORMATION

The SkiStar shareThe number of shareholders at 30 November

2016 was 28,800, which is an increase of 830

(3 percent) since 31 August 2016. SkiStar is

listed on the Mid Cap list of the Nasdaq Stock-

holm exchange. The number of shares was

39,188,028, of which 37,364,028 are class B

shares. The closing price of the SkiStar share at

30 November 2016 was SEK 163.

PersonnelThe average number of employees was 662

(571), an increase of 91 from the first quarter of

the previous year. The increase is attributable

to early snowmaking thanks to the early cold

weather, and the entry of St. Johann into the

SkiStar Group.

Parent CompanyThe Parent Company’s revenue for the first

quarter 2016/17 was SEK 67 (56) million.

Investments totalled SEK 48 (59) million. The

Annual General Meeting on 10 December 2016

adopted a dividend of SEK 4.50 per share, cor-

responding to a total of SEK 176 million.

Related-party transactionsThe Group is under the control of Erik and Mats

Paulsson and their families and companies.

At 30 November 2016, their shareholding

represented 63 percent of the votes and 47

percent of the capital of the Parent Company.

No significant transactions have occured during

the quarter.

Purchases from associates in the financial year

amounted to 13 (18) million, while sales to asso-

ciates were SEK 6 (3) million. Net receivables

from associates were SEK 184 (165) million,

including SEK 177 (120) million attributable to

loans to associates. In addition to the Group’s

transactions with related parties, the Parent

Company has transactions with subsidiaries.

The transactions have been conducted at mar-

ket conditions. A description of the nature of

the transactions can be found in note 35 of the

Annual Report for 2015/16.

Risks and uncertaintiesThe risks and uncertainties described below

apply to both the Parent Company and Group.

The number of guests at SkiStar’s destinations

is influenced by weather and snow conditions.

A late winter with a lack of cold weather and

natural snow in time for Christmas means

lower demand. Lower demand can also arise in

winters with prolonged cold periods and good

snow conditions in the southern, more densely

populated parts of Scandinavia, as snow, cold

weather and skiing opportunities are available

closer to home. SkiStar addresses these risks

through continuous development of snowmak-

ing systems to guarantee skiing and by making

strategic sales aimed at ensuring that the major-

ity of the accommodation capacity is booked

by the Christmas week when the high season

starts. Fluctuations in the value of the domestic

currencies against other currencies affect travel

patterns and therefore also the number of guests

at SkiStar’s destinations. SkiStar’s earnings

are also affected by the relationship between

the Swedish krona and Norwegian krone. The

number of days off during Christmas and New

Year and whether Easter comes early or late also

affects guests’ travel patterns. A more detailed

description of risks and uncertainties can be

found in the administration report and note 31

of the Annual Report for 2015/16.

AGM and inaugural Board meetingA total of 199 shareholders, representing 77.3

percent of the voting rights, attended SkiStar’s

Annual General Meeting held at Experium in

Sälen on 10 December 2016.

The following decisions were made at the

Annual General Meeting:

• A dividend of SEK 4.50 (4.00) per share

was adopted.

• Erik Paulsson (Chairman), Eivor Anders-

son, Lena Apler, Bert Nordberg, Pär Nuder,

Per-Uno Sandberg and Mats Årjes were

re-elected as ordinary Board members to

serve until the next AGM.

• Board fees of SEK 1,115 (1,020) thousand

were adopted, distributed as follows: SEK

240 (220) thousand to the Chairman and

SEK 175 (160) to the other non-executive

directors elected by the AGM.

• Mats Paulsson, Magnus Swärdh and Per-

Uno Sandberg were re-elected as members

of the Nomination Committee and Jan

Särlvik was newly elected. The Nomina-

tion Committee appoints a Chairman from

its members.

• The remuneration policies and other

terms of employment for company man-

agement as proposed by the Board were

adopted.

• The accounting firm Ernst & Young was re-

elected as auditor for a period of one year,

with Authorised Public Accountant Erik

Åström as chief auditor.

• The Meeting authorised the Board to make

decisions on the purchase and transfer of

the Company’s own shares.

The following decisions were made at the inau-

gural Board meeting:

• The Remuneration Committee is to

consist of Erik Paulsson (Chairman), Pär

Nuder and Per-Uno Sandberg.

• The Audit Committee is to consist of Per-

Uno Sandberg (Chairman), Eivor Anders-

son and Pär Nuder.

Financial informationFinancial year 2016/17The interim reports for the financial year and

the year-end report will be published as follows:

• Half-year report,

1 September 2016 – 28 February 2017,

22 March 2017.

• Interim report, Q3,

1 September 2016 – 31 May 2017,

21 June 2017.

• Year-end report,

1 September 2016 – 31 August 2017

4 October 2017.

Accounting policiesThe interim report for the Group has been

prepared in accordance with IAS 34 Interim

Financial Reporting and the Swedish Annual

Accounts Act. The interim report for the Parent

Company has been prepared in accordance

with Chapter 9 of the Swedish Annual Accounts

Act, Interim Reports. The accounting policies

and methods of calculation applied for the

Group and Parent Company are the same as

those applied in preparing the most recent

annual accounts and consolidated financial

statements. Preparation of financial state-

ments in compliance with IFRS requires the

use of accounting assessments and estimates.

It also requires Group management to make

assumptions which affect the application of the

accounting policies and the carrying amounts

of assets, liabilities, income and expense. The

actual outcome may differ from these assess-

ments and estimates. Certain statements

contained in this report are forward-looking and

reflect the current assessments of the Company

and Board of Directors with regard to future

circumstances.

6

AVERAGE INTEREST EXPENSESInterest expenses divided by average interest-

bearing liabilities.

CASH FLOW FROM OPERATING ACTIVI-TIES BEFORE CHANGES IN WORKING CAPITALThe reason for the key performance measure

is that the change in inventories, trade receiva-

bles and trade payables is marginal, and these

items are therefore eliminated to obtain a more

accurate picture of operations.

CASH FLOW PER SHARECash flow before changes in working capital

divided by the average number of shares.

CURRENT RATIOCurrent assets including unutilised credit

facilities granted as a percentage of current

liabilities.

DEBT/EQUITY RATIOInterest-bearing liabilities as a percentage of

equity.

EARNINGS PER SHAREProfit/loss for the year attributable to share-

holders of the Parent divided by the average

number of shares.

DILUTED EARNINGS PER SHARE Profit/loss for the year attributable to share-

holders of the Parent, adjusted for interest

expenses after tax on convertible debt, divided

by the number of shares after full conversion of

convertibles subscribed for.

EQUITY PER SHAREEquity divided by the average number of shares

for the reporting period.

GROSS MARGINOperating profit/loss before depreciation/amor-

tisation as a percentage of revenue.

INTEREST-BEARING LIABILITIESCurrent and non-current liabilities to credit

institutions, provisions for pensions and items

in other current liabilities that are interest-

bearing.

INTEREST COVERAGE RATIOProfit/loss after net financial items plus finance

costs as a percentage of finance costs.

QUICK RATIO Current assets including unutilised credit facili-

ties granted less inventories divided by current

liabilities.

NET MARGINProfit/loss before tax as a percentage of revenue.

OPERATING MARGINOperating profit/loss after depreciation/amorti-

sation as a percentage of revenue.

OPERATING PROFIT/LOSSRevenue less cost of goods for resale, personnel

costs, other operating expenses, depreciation,

profit/loss from joint ventures/associates and

negative goodwill.

P/E RATIOShare price at the reporting date divided by

earnings per share after tax.

RETURN ON AVERAGE EQUITYProfit/loss after tax in relation to average equity.

RETURN ON CAPITAL EMPLOYEDIProfit/loss after net financial items plus

finance costs as a percentage of average capital

employed. Capital employed is defined as assets

less non-interest-bearing liabilities.

RETURN ON EQUITYProfit/loss after tax as a percentage of equity.

RETURN ON TOTAL ASSETS Profit/loss after net financial items plus finance

costs as a percentage of average total assets.

SHARE DIVIDEND YIELDDividend divided by the share price.

SHARE PRICE/CASH FLOWShare price at the reporting date divided by

cash flow from operating activities.

PRICE/EQUITY RATIO Share price at the reporting date divided by

equity per share.

EQUITY/ASSETS RATIOEquity as a percentage of total assets.

DEFINITIONS OF KEY PERFORMANCE MEASURES

ALFAlpinanleggenes Landsforening (Norwegian

Ski Lift Association).

BOOKING VOLUMEA comparison of the number of booked over-

night stays between two defined periods.

FINANCIAL YEARSkiStar’s financial year covers the period

1 September to 31 August.

First quarter (Q 1) September – November

Second quarter (Q 2) December – February

Third quarter (Q 3) March – May

Fourth quarter (Q 4) June – August

OCCUPANCY RATE Accommodation bookings as a percentage of

the beds mediated by SkiStar at 100% capac-

ity in the period beginning the third week in

December and ending the third week in April.

OVERNIGHT STAYOne booked night in a cabin, apartment or

hotel room.

SKIER DAYOne day’s skiing with a SkiPass.

SKIPASSCard providing access to ski lifts.

SLAOSvenska Skidanläggningars Organisation

(Swedish Ski Lift Organisation).

OTHER DEFINITIONS

Key performance measures are either measures used in Swedish listed companies or those used by management and analysts.

7

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

3 MONTHS 1 Sep-30 Nov

12 MONTHSrolling

1 Dec–30 Nov

FULL YEAR 1 Sep–31 Aug

SEK THOUSANDS 2016/17 2015/16 2015/16 2015/16

Revenue 117,097 81,833 2,025,819 1 ,990,555

Other income 1,613 1,346 9,146 8,879

Total operating income 118,710 83,179 2,034,965 1,999,434

Operating expenses Goods for resale -26,375 -21,380 -212,953 -207,958

Other external expenses -166,291 -140,065 -632,886 -606,661

Personnel costs -103,201 -91,205 -555,878 -543,881

Cost of sold interests in accommodation/exploitation assets -17,955 -5,082 -50,365 -37,492

Share in profit/loss of joint ventures/ associates -6,781 -5,103 6,517 8,195

Depreciation/amortisation -55,079 -49,339 -219,011 -213,271

Negative goodwill - - 40,999 40,999

Operating profit/loss -256,972 -228,995 411,388 439,365

Net financial items -5,636 -9,993 -49,176 -53,533

Profit/loss before tax -262,608 -238,988 362,212 385,832

Tax 55,721 57,175 -80,936 -79,483

Profit/loss for the period -206,887 -181,813 281,275 306,349

OTHER COMPREHENSIVE INCOME

Items that may be reclassified to profit or loss

Change in fair value of cash flow hedges for the period 4,331 -57 10,549 6,161

Deferred tax on cash flow hedges -989 -42 -2,552 -1,605

Step acquisition of associated company* 4,892 4,892

Exchange differences on translation of foreign operations for the period 26,467 -6,138 40,122 7,517

Other comprehensive income for the period 29,809 -6,237 53,011 16,965

Total comprehensive income for the period -177,078 -188,050 334,286 323,314

Profit/loss for the period attributable to:

Shareholders of the Parent -201,628 -181,740 290,402 310,290

Non-controlling interests -5,259 -73 -9,127 -3,941

Profit/loss for the period -206,887 -181,813 281,275 306,349

Comprehensive income for the period attributable to:

Shareholders of the Parent -173,343 -187,960 339,606 324,989

Non-controlling interests -3,735 -90 -5,320 -1,675

Total comprehensive income for the period -177,078 -188,050 334,286 323,314

Earnings per share

Basic and diluted, SEK -5.15 -4.64 7.41 7.82

Average number of shares outstanding

Basic and diluted 39,188,028 39,188,028 39,188,028 39,188,028

*A further 51% of Staven Näring AS in Hemsedal was acquired during the period. The impact on the Group’s earnings and balance sheet is only marginal.

8

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS, SEK THOUSANDS 30 Nov 2016 30 Nov 2015 31 Aug 2016

Non-current assets

Intangible assets 205,471 212,306 205,523

Property, plant and equipment 3,090,566 2,878,005 3,023,391

Investments in joint ventures/associates 256,053 240,843 262,253

Other investments and securities held as non-current assets 82,866 99,899 74,188

Other non-current receivables 219,993 200,188 202,922

Deferred tax assets - 1,448 -

Total non-current assets 3,854,949 3,632,689 3,768,276

Current assets

Goods for resale 158,212 140,311 84,910

158,212 140,311 84 910

Trade receivables 54,412 46,923 36,465

Tax receivables 25,668 22,706 19,317

Other current receivables 70,603 101,019 61,596

Prepaid expenses and accrued income 65,500 74,570 43,863

216,183 245,218 161,241

Cash & cash equivalents 87,105 18,626 92,719

Total current assets 461,500 404,155 338,870

TOTAL ASSETS 4,316,449 4,036,844 4,107,146

EQUITY AND LIABILITIES, SEK THOUSANDS

Share capital 19,594 19,594 19,594

Other contributed capital 397,573 397,573 397,573

Reserves -51,247 -95,559 -79,532

Retained earnings, including profit/loss for the period 1,269,279 1,130,737 1,470,907

Equity attributable to shareholders of the Parent 1,635,199 1,452,345 1,808,542

Non-controlling interests 57,668 994 61,403

Total equity 1,692,867 1,453,339 1,869,945

Non-current liabilities

Liabilities to credit institutions 1,051,448 40,592 1,109,667

Provisions for pensions 10,386 5,423 10,165

Other provisions 1,564 569 1,473

Other non-interest-bearing liabilities 46,727 52,406 60,421

Deferred tax liabilities 54,953 0 87,547

Total non-current liabilities 1,165,078 98,990 1,269,274

Current liabilities

Liabilities to credit institutions 644,166 1,720,281 633,017

Trade payables 152,971 157,347 96,219

Tax liabilities 16,688 33,423 37,011

Other current liabilities 455,312 416,552 112,008

Accrued expenses and deferred income 189,367 156,912 89,672

Total current liabilities 1,458,504 2,484,515 967,927

Total liabilities 2,623,582 2,583,505 2,237,201

TOTAL EQUITY AND LIABILITIES 4,316,449 4,036,844 4,107,146

PLEDGED ASSETS AND CONTINGENT LIABILITIES, SEK THOUSANDS

See note on page 16.

9

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT

SEK THOUSANDS Share capital

Other contributed

capitalTranslation

reservesHedging reserves

Retained earnings and profit for the

year Total

Non- controlling

interests Total equity

Opening equity, 1 Sep 2015 19,594 397,573 -52,526 -36,813 1,312,477 1,640,305 1,084 1,641,389

Profit/loss for the period -181,740 -181,740 -73 -181,813

Other comprehensive income for the period -6,121 -99 -6,220 -17 -6,237

Comprehensive income for the period 0 0 -6,121 -99 -181,740 -187,960 -90 -188,050

Closing equity, 30 Nov 2016 19,594 397,573 -58,647 -36,912 1,130,737 1,452,345 994 1,453,339

Opening equity, 1 Sep 2016 19,594 397,573 -47,275 -32,257 1,470,907 1,808,542 61,403 1,869,945

Profit/loss for the period -201,628 -201,628 -5,259 -206,887

Other comprehensive income for the period 24,943 3,342 28,285 1,524 29,809

Comprehensive income for the period 0 0 24,943 3,342 -201,628 -173,343 -3,735 -177,078

Closing equity, 30 Nov 2016 19,594 397,573 -22,332 -28,915 1,269,279 1,635,199 57,668 1,692,867

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

3 MONTHS 1 Sep-30 Nov

FULL YEAR 1 Sep–31 Aug

SEK THOUSANDS 2016/17 2015/16 2015/16

Operating activities Profit/loss after financial items -262,608 -238,988 385,832

Adjustment for non-cash items 41,244 57,003 142,723

-221,364 -181,985 528,555

Tax paid -7,585 -4,286 -33,176

Changes in working capital 369,053 351,452 26,039

Cash flow from operating activities 140,104 165,181 521,418

Investing activities Acquisition of property, plant and equipment -92,098 -183,971 -378,092

Sale of property, plant and equipment 30,192 20,564 45,006

Other investing activities -11,692 -49,846 71,005

Cash flow from investing activities -73,598 -213,253 -262,081

Financing activities Proceeds from borrowings 200,000 47,044 381,383

Repayment of borrowings -274,785 -3,778 -416,714

Dividend paid -156,752

Cash flow from financing activities -74,785 43,266 -192,083

Cash flow for the period -8,279 -4,806 67,254

Cash & cash equivalents at beginning of year 92,719 23,513 23,513

Exchange differences 2,665 -81 1,952

Cash & cash equivalents at end of period 87,105 18,626 92,719

10

THE GROUP’S OPERATING SEGMENTS3 MONTHS

1 Sep-30 NovFULL YEAR 1 Sep–31 Aug

SEK THOUSANDS 2016/17 2015/16 2015/16

SKI RESORTS – OPERATION

Revenue 87,539 66,133 1,901,283

Other income 1,059 570 6,117

Operating income -295,117 -252,649 -1,317,214

Internal expenses -92,825 -69,500 -278,000

Share of profit/loss of joint ventures/associates -6,345 -4,986 8,331

Depreciation/amortisation -5,231 -5,949 -22,203

Operating profit/loss -310,920 -266,382 298,313

Intangible assets 205,471 212,307 205,523

Financial assets 117,148 136,024 58,239

Operating loans 341,835 326,755 571,304

INFRASTRUCTURE

Internal rental income 92,825 69,500 278,000

Sale of interests in accommodation 18,023 13,001 23,451

Capital gains, non-current assets 539 775 1,424

Cost of sold interests in accommodation -12,987 -4,477 -5,506

Depreciation/amortisation -50,598 -43,391 -191,355

Operating profit/loss 47,802 35,408 106,014

Property, plant and equipment 3,072,043 2,798,503 2,933,492

Financial assets 433,929 398,063 472,852

Investment loans 1,353,779 1,434,118 1,171,380

EXPLOITATION

Revenue from sold exploitation assets 11,550 2,700 67,159

Cost of sold exploitation assets -4,968 -605 -31,986

Share of profit/loss of joint ventures/associates -436 -116 -136

Operating profit/loss 6 ,46 1,979 35,037

Property, plant and equipment 18,523 79,502 89,900

Financial assets 7,835 8,291 8,271

IInvestment loans 0 0 0

Total external revenue for segments 118,710 83,178 1 ,999,434

Total operating profit/loss from segments -256,972 -228,995 439,365

Total non-current assets from segments 3,854,950 3,632,690 3,768,276

Total liabilities from segments 1,695,614 1,760,873 1,742,684

Segment reportingAs of the Q2 2014/15 interim report, operations are monitored and presented in the segments Ski Resorts – Operation, Infrastructure and Exploitation.

• Ski Resorts – Operation encompasses the operation of resorts and sales of all products and services. The focus is on sales and efficient operation. An estimated internal rent on capital invested in Infrastructure is charged to the segment’s earnings. There is no revenue from other segments.

• Infrastructure covers non-current assets such as land, lifts, properties, investments in partly owned companies. The focus is on generating a reasonable return on investments. Sources of revenue include internal rent from Operation and return on non-current assets.

• Exploitation covers properties not used within Infrastructure. The focus is on developing and realising value.

Investment loans have been allocated to Infrastructure, where assets that can be pledged are recognised. Operating loans have been allocated to Ski Resorts – Operation. The internal rent is based on cash flow generating a five-percent return on the carrying amounts of invested assets. Rent is determined annually in advance. Group-wide costs have been allocated according to the estimated benefit. Intra-Group sales and purchases are conducted at market conditions. Comparative values have been recalcula-ted.

11

CONDENSED INCOME STATEMENT – PARENT COMPANY

3 MONTHS 1 Sep-30 Nov

FULL YEAR 1 Sep–31 Aug

SEK THOUSANDS 2016/17 2015/16 2015/16

Revenue 67,171 56,032 1,367,505

Other operating income 1,142 886 3,149

Total operating income 68,313 56,918 1,370,654

Operating expenses Goods for resale -20,682 -17,065 -155,595

Other external expenses -126,374 -113,431 -485,871

Personnel costs -70,070 -66,290 -395,552

Cost of sold interests in accommodation/exploitation - -605 -506

Depreciation/amortisation of assets -32,741 -31,428 -130,825

Operating profit/loss -181 554 -171,901 202,306

Net financial items -1,155 -4,827 19,198

Profit/loss after net financial items -182,709 -176,728 221,503

Appropriations - - -144,258

Profit/loss before tax -182,709 -176,728 77,245

Tax 39,440 42,828 -8,049

Profit/loss for the period -143,269 -133,900 69,196

Other comprehensive income

Items that may be reclassified to profit or loss

Change in fair value of cash flow hedges for the period 2,408 -1,690 -1,389

Deferred tax on cash flow hedges -530 372 306

Other comprehensive income for the year 1,878 -1,318 -1,083

Total comprehensive income for the year -141,391 -135,218 68,113

12

CONDENSED BALANCE SHEET – PARENT COMPANY

ASSETS, SEK THOUSANDS 30 Nov 2016 30 Nov 2015 31 Aug 2016

Non-current assets Intangible assets 40,530 51,481 44,467

Property, plant and equipment 1,572,308 1 ,579,631 1,554,404

Financial assets Investments in Group companies 343,033 260,385 343,012

Investments in joint ventures/associates 8,703 8,752 8,703

Other investment and securities held as non-current-assets 16,985 14,711 14,712

Other non-current receivables 54,199 64,720 13,902

Receivables from Group companies 226,257 46,674 136,556

Total non-current assets 2,262,015 2,026,354 2,115,755

Current assets

-Inventories Goods for resale 118,565 109,196 65,863

118,565 109,196 65,863

-Current receivables Trade receivables 34,033 29,522 28,822

Receivables from Group companies 21,455 388,873 142,626

Tax receivables 16,334 16,334 12,834

Other current receivables 46,247 63,648 23,885

Prepaid expenses and accrued income 47,774 43,871 29,402

165,843 542,248 237,569

-Cash and cash equivalents Cash and bank balances 2,323 2,480 1,415

Total current assets 286,731 653,924 304,847

TOTAL ASSETS 2,548,746 2,680,278 2,420,602

EQUITY AND LIABILITIES, SEK THOUSANDS

Equity

-Restricted equity Share capital 19,594 19,594 19,594

Statutory reserve 25,750 25,750 25,750

45,344 45,344 45,344

-Non-restricted equity Share premium reserve 4,242 4,242 4,242

Retained earnings 979,185 1,064,629 908,111

Profit/loss for the year -143,269 -133,900 69,196

840,158 934,971 981,549

Total equity 885,502 980,315 1,026,893

Untaxed reserves

Non-current liabilities

-Non-current interest-bearing liabilities Liabilities to Group companies 115,679 17,970 19,203

Liabilities to credit institutions 481,946 0 558,517

-Provisions Provisions for pensions 6,157 5,423 6,038

Other provisions 886 569 678

-Non-current non-interest-bearing liabilities Derivative liabilities 42,226 38,145 49,212

Deferred tax liabilities 131,867 130,731 130,282

Total non-current liabilities 778,761 192,838 763,929

-Current liabilities Liabilities to credit institutions 297,735 971,515 287,735

Liabilities to Group companies 49,603 40,709 144,173

Trade payables 112,259 132,952 62,274

Other current liabilities 312,444 278,833 74,703

Accrued expenses and deferred income 112,442 83,116 60,894

Total current liabilities 884,483 1,507,125 629,780

Total liabilities 1,663,244 1,699,963 1,393,709

TOTAL EQUITY AND LIABILITIES 2,548,746 2,680,278 2,420,603

PLEDGED ASSETS AND CONTINGENT LIABILITIES, SEK THOUSANDS

See note on page 16.

13

KEY PERFORMANCE INDICATORS AND DATA PER SHARE

3 MONTHS1 Sep-30 Nov

FULL YEAR1 Sep–31 Aug

KEY PERFORMANCE INDICATORS 2015/16 2014/15 2013/14 2012/13 2011/12 2014/15

Revenue, SEK thousand 117,097 81,833 63,933 60,662 55,382 1,990,555

Operating income, SEK thousand 118,710 83,179 67,411 62,377 60,705 1,999,434

Profit/loss before tax, SEK thousand -262,608 -238,988 -265,089 -264,792 -268,594 385,832

Profit/loss after tax, SEK thousand -206,887 -181,813 -204,763 -214,754 -221,984 306,349

Cash flow from operating activities, SEK thousand 140,104 165,181 53,703 50,133 35,943 521,418

Total cash flow, SEK thousand -8,279 -4,806 -1,994 2,802 -9,478 67,254

Return on:

-capital employed, % -7 -7 -7 -7 -7 13

-equity, % -12 -12 -16 -17 -15 17

-total assets, % -6 -6 -6 -6 -6 11

Gross margin, % -172 -218 -305 -324 -359 33

Operating margin, % -219 -278 -381 -408 -456 22

Net margin, % -224 -290 -401 -437 -485 19

Equity/assets ratio, % 39 36 32 31 39 46

2016/17 2015/16 2014/15

Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2

Revenue, SEK thousand 117,097 115,679 678,207 1,114,836 81,833 81,773 677,996 1,075,543

Operating income, SEK thousand 118,710 116,605 678,912 1,120,738 83,179 85,375 683,716 1,076,002

Profit/loss before tax, SEK thousand -262,608 -183,746 281,416 527,150 -238,988 -158,884 229,207 517,725

Profit/loss after tax, SEK thousand -206,887 -142,485 228,935 401,712 -181,813 -121,642 176,533 398,449

Cash flow from operating activities, SEK thousand 140,104 -122,044 -170,406 648,687 165,181 -109,799 -167,207 726,831

Total cash flow, SEK thousand -8,279 -24,470 -41,633 138,163 -4,806 -3,669 -48,461 53,203

Gross margin, % neg neg 51 53 neg neg 44 54

Operating margin, % neg neg 43 48 neg neg 36 49

Net margin, % neg neg 41 47 neg neg 34 48

30 NOV 31 AUG

DATA PER SHARE 2016 2015 2014 2013 2012 2016

Share price, SEK 163.00 129.50 89.00 89.00 87.50 142.00

Average number of shares 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028

Average number of shares, after full conversion 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028

Earnings, SEK -5.15 -4.64 -5.23 -5.48 -5.66 7.82

Earnings after full conversion, SEK -5.15 -4.64 -5.23 -5.48 -5.63 7.82

Cash flow from operating activities, SEK 3.58 4.22 1.37 1.28 0.92 13.31

Share price/cash flow, times 45.6 30.7 64.9 69.6 95.4 10.7

Equity, SEK 43 37 33 32 32 48

Price/equity, % 377 349 267 277 277 298

2014/15 2014/15 2013/14

Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2

Average number of shares 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028

Average number of shares, after full conversion 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028 39,188,028

Earnings SEK -5.15 -3.64 5.84 10.25 -4.64 -3.10 4.50 10.17

Earnings after full conversion, SEK -5.15 -3.64 5.84 10.25 -4.64 -3.10 4.50 10.17

Cash flow from operating activities, SEK 3.58 -3.11 -4.35 16.55 4.22 -2.80 -4.27 18.55

Equity, SEK 43 48 51 43 37 42 46 41

Return on equity, % -12 -8 12 24 -13 -7 10 25

14

RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES

SEK THOUSANDS 3 MONTHS1 Sep-30 Nov

FULL YEAR

1 Sep–31 Aug

FINANCING AND INTEREST-BEARING LIABILITIES 2016/17 2015/16 2015/16

Non-current interest-bearing liabilities to credit institutions 1,051,448 40,592 1,109,667

Provisions for pensions 10 ,386 5,423 10,165

Current interest-bearing liabilities to credit institutions 644,166 1 ,720,281 633,017

1,706,000 1,766,296 1,752,849

2016/17 2015/16 2014/15 2013/14 2012/13

SEK THOUSANDS Q1 Nov 2016 Q1 Nov 2014 Q1 Nov 2013 Q1 Nov 2012 Q1 Nov 2011

RETURN ON CAPITAL EMPLOYED

Profit after financial items (see previous reports) -262,608 -238,988 -265,089 -264,792 -268,594

Finance income 3,115 1,684 653 2,515 2,637

Finance costs -8,751 -11,677 -13,568 -19,741 -18,415

Net financial items -5,636 -9,993 -12,915 -17,226 -15,778

Profit after financial items, plus finance costs -253,857 -227,311 -251,521 -245 051 -250,179

CAPITAL EMPLOYED

Assets 4,316,449 4,107,146 4,036,844 3,759,838 4,083 282 3,960,236 4,054,004 3,893,942 4,224,529 4,001,855

Non-current non-interest-bearing liabilities 103,769 149,441 52,975 96,467 81,463 72,655 52,281 41,643 40,569 50,727

Current non-interest-bearing liabilities 814,338 334,910 764,234 290,279 637,710 277,002 633,949 262,745 617,142 216,375

Total non-interest-bearing liabilities 917,582 484,352 817,209 386,746 719,173 349,657 686,230 304,388 657,711 267,102

Capital employed 3,398,867 3,622,794 3,219,635 3,373,092 3,364,109 3,610,579 3,367,774 3 589,554 3,566,818 3,734,753

Average return on capital employed 3,510,831 3,296,364 3,487,344 3,478,664 3,650,786

Return on capital employed -7% -7% -7% -7% -7%

RETURN ON EQUITY

Equity 1,692,867 1,869,945 1,453,339 1 ,641,389 1,305,224 1,537,735 1,258,915 1,482,141 1,242,391 1,692,159

Average return on equity 1,781,406 1,547,364 1,421,480 1,370,528 1,467,275

Profit after tax (see also previous reports) -206,887 -182 ,256 -204,762 -214,754 -221 984

Return on equity -12% -12% -14% -16% -15%

RETURN ON TOTAL ASSETS

Total assets 4,316,449 4,107,146 4,036,844 3,759,838 4 083,282 3,960,236 4,054,004 3,893,942 4,224,529 4,001,855

Average return on total assets 4,211,797 3,898,341 4 021,759 3,973,973 4,113,192

Return on total assets -6% -6% -6% -6% -6%

15

This interim report has not been reviewed by the company’s auditor.

Sälen, 21 December 2016

Mats Årjes

Chief Executive Officer

This information is information that SkiStar AB is obliged to make public pursuant to the EU Market Abuse Regulation and

the Securities Markets Act. The information was submitted for publication, through the agency of the

contact person set out above, at 21 December 2016, 07.30 a.m. CET.

AcquisitionsSkiStar acquired properties through companies

during the 2015/16 financial year. The acquisi-

tions consisted of assets and liabilities and did

not include business operations. The remaining

shares in the associate Staven Näring AS in

Hemsedal in Norway were acquired for NOK 1.

The company does not have any employees and

the acquired assets and liabilities do not have

any material impact on the SkiStar Group’s

earnings or balance sheet. On 10 May 2016,

SkiStar AB paid share issue proceeds of EUR

10 million (SEK 93 million), thereby becoming

the owner of 68 percent of the shares in the

Austrian ski resort of St. Johanner Bergbahnen

GmbH. The value of net assets acquired after

the issue was EUR 14.4 million, which was

higher than the acquisition proceeds. The differ-

ence, EUR 4.4 million, has been treated as nega-

tive goodwill and recognised as revenue in the

consolidated income statement for 2015/16.

Information about acquired values can be found

in note 36 of the Annual Report for 2015/16.

Disclosures in accordance with IFRS 13 In addition to the usual working capital items

and cash and cash equivalents, SkiStar’s finan-

cial instruments consist of receivables from

associates, interest-bearing liabilities, deriva-

tives and available-for-sale financial assets.

Interest-bearing liabilities carry floating interest

rates. The majority of other financial assets and

liabilities have short maturities. Derivatives and

available-for-sale financial assets are measured

at fair value based on level 2 and level 3 inputs

in the IFRS 13 hierarchy. There have not been

any transfers between levels during the period.

The fair values of all financial instruments are

deemed to approximate their carrying amounts.

SkiStar has not reported any financial assets or

liabilities on a net basis.

NOTES

Pledged assets and contingent liabilities

PLEDGED ASSETS

SEK THOUSANDS 30 Nov 2016 30 Nov 2015 31 Aug 2016

Group 1,612,732 1,443,226 1 465,732

Parent Company 536,392 526,411 527,049

CONTINGENT LIABILITIES

SEK THOUSANDS 30 Nov 2016 30 Nov 2015 31 Aug 2016

Group 389,030 382,078 380,307

Parent Company 1,177,206 1,122,522 1,148,096

16

SKISTAR AB (PUBL)SE-780 67 SÄLEN

Corporate Identity Number: 556093-6949Tel: +46 280 880 50

E-mail: info@skistar.com

SkiStar is listed on the Nasdaq Mid Cap, Stockholm. The Group owns and operates alpine destinations in Sälen, Åre, Vemdalen and Hammarbybacken

(Stockholm) in Sweden, Hemsedal and Trysil in Norway and St. Johann in Tirol in Austria. Market share is 50% in Sweden, 31% in Norway and 42% in

Scandinavia. The Group’s core business is alpine skiing, with a focus on the guests’ overall skiing experience. Operations are divided into three seg-

ments; Ski Resorts – Operation, Infrastructure and Exploitation. As the leading operator of European Alpine destinations, SkiStar’s business concept is

to provide memorable winter experiences, offering value for guests, employees and other interested parties, which, in turn, creates value for our share-

holders. The Group’s business model and fundamental strategy are based on offering the entire range of accommodation at all of SkiStar’s destinations

through one distribution channel, thereby ensuring a high occupancy level and providing the conditions to maximise the sale of SkiPasses. In order to

achieve this, SkiStar strives to guarantee that all operators at its destinations offer a product and a service of such quality that this results in satisfied,

returning guests. Sales of SkiPasses are the most significant value driver in SkiStar’s operations.

SKISTAR IN BRIEF