Tatry mountain resorts : Annual Report 2021/22 (Non-Official

Annual Report

2021/22

Tatry mountain resorts, a. s.

and its Subsidiaries

as of October 31, 2022

2

Content

Commentary from Chairman of the Board of Directors	4
Operations Review	6
Consolidated Financial Highlights	8
Our History	10
Company Profile	12
Strategy	22
Key Performance Indicators (KPIs)	28
Market Analysis and Trends	30
Risk Factors and Risk Management	36
Financial Performance Review for the Year	44
Key Results	46
Financial performance	47
Results by Segments	47
Key Performance Indicators (KPIs)	48
Financial Operating Results	50
Group's Position at the End of the Year	52
Financial Position	54
Outlook	55
Other financial information	56
Corporate Social Responsibility	58
Environment and Community	60
Human Resources	63
Projects	63
Corporate Governance	64
Corporate Governance Principles	66
Board of Directors	66
Supervisory Board	67
General Meeting	71
Supervisory Board Report	72
The Company's Corporate Governance Code	73
Other Supplementary Data	76
Contracts with External Advisors and Related Parties	78
Proposal on Distribution of Profit	79
Shares	80
Consolidated Financial Statements	84
Separate Financial Statements	178
Remuneration Report	266
Statement by the Board of Directors	272

Commentary from Chairman of the Board of Directors

Igor Rattaj

Chairman of the Board of Directors

Dear shareholders,

We have behind us unprecedented years significantly marked by the COVID-19 coronavirus pandemic and the outbreak of a military conflict in neighboring Ukraine, which negatively affected world markets and caused global inflation and economic instability. Despite these negative external factors, consolidated revenues achieved amount of EUR 133.6 mil. and operating profit before depreciation - EBITDA, amount of EUR 33.7 mil. However, due to higher operating and interest expenses, depreciation and impairment of non-current assets, we reported a net consolidated loss of EUR 11.9 mil.

Although the beginning of the season was marked by anti-pandemic measures that limited full- scale operation in Slovakian and Austrian resorts. Resorts in Poland and the Czech Republic recorded extraordinary successes. The Polish resort Szczyrk experienced a successful season, lasting 114 days, the newly built "Nová Skalka" ski slope, which also offers visitors night skiing, significantly contributed to the growth of revenues of the Czech resort - Ještěd.

The Polish amusement park Legendia in Katowice experienced a successful winter and summer season, in which we achieved a record number of visitors - over 500,000 visitors during the entire financial year. Thanks to the acquisition of Water park Bešeňová, which TMR has owned since April 2022, the total attendance in the segment of leisure parks approached 1.4 mil. visitors, which represents a 75% increase compared to 2019.

We have traditionally organized our favorite events throughout the year. The most visited Tatra attraction was once again the Tatra Ice Dome at Hrebienok, which this year was constructed in the style of the Pilgrimage of St. James. A novelty in the Jasná ski resort was the return of the shepherd tradition and the traditional mountain sheep - wallachian sheep, which visitors could experience in the Priehyba location on the northern side of Chopok. In addition to various events, we have prepared number of novelties and advantageous offers for our clients, which we have offered to guests through our portal and the loyalty program GOPASS.

We invested EUR 23.6 mil. last year. The most important investment was the construction of the long-awaited new cableway connecting the Biela Púť and Priehyba. Another strategically important investment and development activity in the Jasná resort was the expansion and upgrade of snowmaking system. In the High Tatras, we bought gastro business the Humno in Tatranská Lomnica, which we had rented for a long time. Investments also went to our foreign resorts in Poland, the Czech Republic and Austria.

The goal of the next few years is to achieve a balanced performance at least at the level of results before the outbreak of the pandemic. Furthermore, we want to grow organically, benefit from the completed investments and of course, improve the quality of services and the offer in our resorts.

Igor Rattaj