Annual Report 2018/2019
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annual report 2018/2019 Annual Report of Tatry mountain resorts, a.s. and its subsidiaries as of 31/10/2019 2 Commentary from CEO 5 Operations Review 6 Consolidated Financial Highlights 8 Our History 10 Content Company Profile 12 Strategy 24 Key Performance Indicators (KPIs) 32 Market Analysis and Trends 34 Risk Factors and Risk Management 40 Financial Performance Review for the Year 48 Key Results 50 Total Revenues and Income 51 Key Events of the Year 51 Results by Segments and Subsegments 52 Key Performance Indicators (KPIs) 52 Financial Operating Results 53 Group’s Position at the End of the Year 56 Financial Position 58 Cash Flow 59 Outlook 59 Corporate Social Responsibility 60 Environment and Community 62 Human Resources 64 Projects 64 Corporate Governance 66 Corporate Governance Principles 68 Board of Directors 68 Supervisory Board 70 Audit Committee 72 Top Management 72 General Meeting 74 Supervisory Board Report 76 The Company‘s Corporate Governance Code 76 Other Supplementary Data 80 Contracts with External Advisors and Related Parties 81 Proposal on Distribution of Profit 81 Shares 82 Consolidated Financial Statements 86 Separate Financial Statements 154 Statement by the Board of Directors 216 Commentary from CEO Ing. Bohuš Hlavatý CEO and Chairman of the Board of Directors Tatry mountain resorts, a. s. Dear Shareholders, Dear Fans of Mountains, In the past financial year 2018/19 we grew again in The summer season in the resorts has brought a visitors revenues. The results were achieved by the organic growth growth, although we have seen declines in the leisure parks. of our resorts, hotels and additional services, as well as The total leisure parks’ visit rate dropped by 10.9%. new acquisitions in Austria and the new golf segment. Total revenues increased by 17.9% to EUR 127.6 mil., and With the acquisition of the Alpine glacier resort of Mölltaler operating profit before depreciation, EBITDA, of EUR 35.4 Gletscher and its sister Ankogel resort in Austrian Carinthia mil. is up by 3.7%. However, due to higher operating and we have succeeded in fulfilling our medium-term strategic interest expenses and depreciation we reported a net plan to expand our portfolio with a medium-sized Alpine consolidated loss of EUR -1.8 mil. resort. We took over the operation in May 2019 and the whole winter season will be reflected in the results of the The winter season was successful in terms of snow following period. conditions in our mountain resorts and temperatures low enough for snowmaking. The largest increase in the visit This year we entered the golf segment when we rented two rate was recorded in the fully modernized Polish Szczyrk prestigious golf resorts in the Czech Republic - Kaskáda Mountain Resort. The total visit rate of mountain resorts, Golf Resort and Golf & Ski Resort Ostravice for at least 20 including the newly acquired Austrian resorts Mölltaler years. We plan to develop their accommodation capacities Gletscher and Ankogel, improved by 4.9%. We have in particular, and we want to implement the Gopass program seen a drop in attendance in the Vysoké Tatry and Jasná and take advantage of group synergies. resorts, as we are unable to meet our strategic expansion plan, especially in Vysoké Tatry, and we are faced with the We again organized our favorite events, both in the winter and competition of smaller resorts, especially in favorable snow in the summer, including the most visited Tatra attraction, Ice conditions. Dome at Hrebienok, which was built this year in the style of Vatican St Peter’s Basilica. The Women‘s World Cup in This winter we have introduced a revolutionary flexible Alpine Skiing in Špindlerův Mlýn, which we organized, had a pricing system for ski passes, “flexi pricing”, to regulate the positive audience response thanks to the participation and visit rate, increase average revenue per skier day, and online victory of the World Champion, Petra Vlhová. client share. Thanks to the flexibility of prices we are able to quickly respond to the current demand in the mountain In terms of investment in development, we invested EUR resorts, plan the capacity of the resorts and teach clients 45.3 mil. last year. Investments went to the Slovak resorts to buy ski passes in advance. Thanks to the flexi pricing and hotels, as well as to Szczyrk, Legendia and real estate system and online sales via Gopass Jasná Nízke Tatry grew projects. In Szczyrk the Group‘s largest restaurant was built in revenues the most. on the slope with a capacity of 430 people, and we also bought a hotel here. The hotels of TMR’s portfolio, especially the renovated Tatra grand hotels, had a significant impact on the results with a In the following period we can benefit from further 15.5% increase in revenues. Grandhotel Starý Smokovec has investments and grow organically as well as develop our undergone a major change and in the winter season 2018/19 activities in the new segments and operations. welcomed guests with modernized rooms, conference room and corridors. In November 2018 the Tatra Grandhotel Praha See you on the slopes! was awarded by the Heritage Hotels of Europe Awards as the best European historical hotel in the Heritage & Wellness category and was awarded the Slovakia´s Best Ski Hotel 2018 by the World Ski Awards 2018. OPERATIONS REVIEW 8 9 Consolidated Financial Highlights TMR in Numbers in €'000 unless specified otherwise 2018/19 2017/18 2016/17 2015/16 2014/15 Revenues 127 592 108 249 95 910 81 202 70 915 10 resorts* EBITDA 35 438 34 166 31 516 25 111 24 410 EBIT 14 297 19 245 17 688 12 075 11 112 Net Income -1 812 3 095 6 990 2 746 -751 CAPEX 45 254 53 887 65 058 23 625 6 000 3.6 mil. guests 13 No. of employees 1 456 1 402 1 289 1 095 804 + 1% own / managed Earnings per share (EUR) -0,27 0,47 1,10 0,46 -0,10 hotels Hotel Occupancy (%) 66,3 62,7 56,6 56,5 54,6 6 2 2 Avg. Daily Rate per Room (EUR) 88,0 80,1 71,3 65,4 62,4 mountain leisure golf Visit Rate Mountain Resorts ('000) 2 840 2 706 2 287 2 121 1 930 resorts parks resorts Visit Rate Leisure Parks ('000) 808 907 855 784 777 EBITDA (%) 27,8 31,6 32,9 30,9 34,4 EBIT (%) 11,2 17,8 18,4 14,9 15,7 2.8 mil. 808 ths. 66.3 % 87.97 € skier days occupancy Equity 111 754 113 789 113 149 106 003 103 331 + 4.9% guests - 10.9% + 3.6 p.p. ADR + 9.9% Debt/Equity (%) 310,8 311,3 246,9 216,8 215,3 Debt/Capital (%) 75,7 75,7 71,2 68,4 68,3 Debt/EBITDA 9,8 10,4 8,9 9,2 9,1 Total Assets 533 813 521 684 438 341 375 701 360 921 Group Revenues FTE Key Operating Results mil. € 140 000 € 80% 127.6 + 17.9% 1 456 120 000 € 70% 60% - 10.9% 100 000 € Group EBITDA CAPEX 50% 80 000 € 40% mil. € 60 000 € 35.4 + 3.7% 45.3 mil. € thousands 30% 40 000 € 20% 20 000 € 10% Group Net Profit 0 € 0% 2014/15 2015/16 2016/17 2017/18 2018/19 -1.8 mil. € Revenues EBITDA EBITDA Margin Revenues vs. CAPEX 140 000 € 120 000 € 100 000 € 80 000 € 60 000 € thousands 40 000 € 20 000 € 0 € 2014/15 2015/16 2016/17 2017/18 2018/19 Revenues Capex * as of 31/10/2019 10 11 Our History 2013 2014 2019 2017 On February 16, 2013 TMR In March 2014 TMR In January 2019 The acquired the other 50% in acquired a 97% On November 30, 2017 TMR Group enters a lease Interhouse, s.r.o. (Grandhotel share in a Polish ski made an agreement with the contract of Golf Starý Smokovec). resort Szczyrkowski Czech town of Liberec to rent Resort Kaskáda Ośrodek Narciarski the sports center Ještěd for 10 near the Czech town As of May 1, 2013 subsidiaries S.A. (SON). years with the option of of Brno for a 20-year of TMR - Tatry mountain another 10 years. TMR term. TMR controls officially took over the sports 2010 resorts services, a.s., the management of and ski resort Ještěd in Grandhotel Praha, a.s. and 2015 the hotel with a In October 2010 TMR Interhouse s.r.o. - merged and December 2017, when it also conference center 2009 purchased all shares of seized without liquidation. In April 2015 TMR launched its first winter and a restaurant. Tatry mountain resorts 2012 agreed to acquire a season there. In June 2009 Shareholders of services and thus Share capital of TMR was 75% share in a In June 2019 TMR Jasná Nízke Tatry, a.s. agreed on became its 100% owner. Dual listing of TMR shares decreased from EUR 221.3 Polish entity that acquired a 100% raising of the capital to EUR 250 on exchanges in Warsaw million to EUR 47.0 million on owns and since May 2018 share in an Austrian million and on renaming the TMR initiated and Prague took place in October 22, 2013 based on the 2015 is operating company that owns Company Tatry mountain resorts, cooperation with the October 2012 approval by the Extraordinary Silesian Amusement In November 2018 TMR and operates the a.s. Consequently, a new equity resort of Štrbské Pleso General Meeting held on Park (Śląskie Wesołe enters the golf segment glacier ski resort issue was listed on the Bratislava in December 2010.