For FY 2013/14 TMR with revenues of EUR 56.3 million

For FY 2013/14 TMR with revenues of EUR 56.3 million
For FY 2013/14 TMR with revenues of EUR 56.3 million
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TMR, the regional leader in operation of mountain resorts and provision of services in mountain tourism, today released its annual results for the financial year 2013/14 – the
period from November 1, 2013 to October 31, 2014. TMR grew in consolidated revenues by 3.6% to EUR 56.3 mil., whereas earnings before interest, taxes, depreciation and
amortization (EBITDA) maintained the level of previous year at EUR 18.4 mil. (-0.8%). Consolidated net profit reached the level of EUR 683 thous.

“Last winter season in alpine and Central European resorts could be described only as stingy when it comes to natural snowfall and rather mild, which are two attributes that had an
impact on the visit rate in our mountain resorts in the winter season. The warm weather cut the season short and we concluded the season with Easter break. However, these negative
factors did not impact our results as dramatically as our competitors’ thanks to our modern snowmaking equipment, extensive cableway transportation capacity, which we fully utilized
during the periods with favorable weather, and thanks to our active sales strategy.
” Bohuš Hlavatý, CEO and Chairman of the TMR Board of Directors, commented on the results.

Operating revenues, adjusted for one-off and non-operating items, improved by 6.3% and EBITDA by 0.4%. The solid operating results were also boosted by numerous marketing
events, higher average revenues per visitor in the resorts, higher average occupancy (+0.7%), and a higher average daily rate per room (+7.6%) of TMR hotels. The number of mountain
resorts visitors decreased 6.4% to 1.5 mil., whereas 598 thous. (-5.6%) visitors came to Aquapark Tatralandia. The Hotels segment recorded the highest percentage revenue growth
(+7.4%). Mountain Resorts managed a 6.6% revenue growth despite the negative weather factors. The decrease in net profit to EUR 683 thous. (6,604) was caused mainly by interest
expenses related to the bonds issue in total of EUR 180 mil.

* For better evaluation of the operating performance, the operating results are adjusted for one-off items and non-operating items. The 2013/14 EBITDA is adjusted for one-time expenses of EUR 286 thous. attributed to the SON resort after its acquisition in March 2014 and for the non-operating gain on revaluation of investment property of EUR 1.413 mil. The 2012/13 results are adjusted for non-operating other income from EBITDA contracts

Detailed results by main segments:

Mountains and Leisure
Despite the unfavorable summer weather and the extremely dry and mild winter, total revenues of the main segment, which includes subsegments of Mountain Resorts1 (Jasná
Nízke Tatry, Vysoké Tatry), Aquapark (Tatralandia), Dining, and Sports Services & Stores, reached a 4.8% growth to EUR 41.1 mil. The revenues of the main segment make up 73% of
total operating revenues. EBITDA decreased 7.6% to EUR 13.9 mil. Operating profitability measured by EBITDA margin reached 33.7%. Despite the drop in the visit rate of 6.2%, the
segment achieved improvement in revenues thanks to the diversified business model, growth of ancillary services, and higher average prices, especially in the mountain resorts.

Mountain Resorts
Within the Mountain Resorts subsegment revenues increased 6.6% to EUR 23.5 mil. with the second quarter (February – April) being the strongest one. Mountain Resorts EBITDA
dropped to EUR 7.9 mil. (8.8). The revenue growth despite having a decrease in the number of visitors of 6.4% was possible also with the help of numerous marketing events, barters, and
thanks to increase in ski pass prices (e.g. 1-day ticket in the Main Season increased by EUR 2.00), and, consequently, higher average revenue per visitor, although with online sales prices were kept at the level of prior year.

1 Excludes the results of the SON resort (acquired in March 2014) and Špindlerův Mlýn (Melida a.s.), which is classified as a financial investment according to IFRS.

Aquapark
Revenues from sale of the aquapark’s entry tickets make up 14% of total revenues, and they maintained the level of previous year at EUR 7.7 mil. despite the decrease in the visit rate by
5.6%. The past year of 2013/14 was the third year of Aquapark Tatralandia’s operation under TMR’s management. Aquapark EBITDA improved by 6.1% to EUR 3.9 mil. thanks to cost
optimization.

Dining
Revenues of this subsegment come from the Company’s restaurants and après-ski bars in Jasná Nízke Tatry, Vysoké Tatry and Tatralandia. The revenues of this segment make 13.2%
of total revenues, and its share keeps rising each year. This increasing share is evidence of the lasting trend of growing client demand for ancillary services in the resorts, and therefore,
TMR sees further growth potential in this subsegment. Dining revenues reached EUR 7.4 mil., which means an increase of 9.7% – the greatest one within the Mountains and Leisure
segment. EBITDA decreased to EUR 1.7 mil. (1.9).

Sports Services & Stores
Revenues generated from sports stores, ski schools, ski rent and service in the Mountain Resorts under the Tatry Motion brand last year made up a 4.4% share in total revenues.
Revenues from this subsegment are closely related to the visit rate in Mountain Resorts, so they decreased to EUR 2.5 mil. EBITDA was recorded at EUR 388 thous. (576).

Hotels
TMR’s second largest segment is Hotels with a 25.8% share in total revenues. Hotels ended the financial year with revenues amounting to EUR 14.5 mil. – a 7.4% growth like-for-like.
Besides the increase of average occupancy to 51.4%, the increased Hotels revenues are also attributable to the 7.6% growth in ADR of the hotel portfolio to EUR 59.4 and synergic
effects with Mountain Resorts and Aquapark, supported by active marketing and the effect of the completed capital investments in the hotels from prior periods aimed at the hotels’
enhancement. Operating profit (EBITDA) improved by 57.8% to EUR 3.3 mil.

Financial position
The book value of total assets increased to EUR 359.6 mil. (345.5). Non-current assets increased to EUR 318.9 mil. (288.9) due to the completion of capital investments and their
addition to assets. The key investments included in resort the Jasná Nízke Tatry a new 6-seat cableway at Lúčky; a new parking lot at the entrance station of Chopok South at Krupová;
restaurant and hotel Rotunda at the top of Chopok Mountain; and shielding of a cableway at Chopok South. In the resort Vysoké Tatry a 15-person gondola was launched at Tatranská
Lomnica. In Aquapark Tatralandia the new Restaurant Medrano was opened. With the acquisition of the SON resort its equipment, buildings and land were added into the Company
assets, as well. The book value of shareholders’ equity amounted to EUR 102.3 mil. (101.5). The total value of the Group’s borrowings amounted to EUR 228.1 mil. (213.1). Out of that
issued bonds are valued at EUR 184.4 mil. EUR. During the year the Company issued two tranches of bonds – senior bonds TMR I 4.50%/ 2018 with the nominal value of EUR 70 mil.
and junior bonds TMR II 6%/ 2021 with the nominal value of EUR 110 mil. The total value of the Group’s bank loans as of the end of the period came to EUR 43.7 mil. (38.7).

Outlook
Management expects continuing positive effects stemming from capital investments of prior periods totaling EUR 200 mil. with impact on the next financial year and following periods, in
terms of increasing the visit rate, client spending in the resorts, and growing occupancy in the hotels, especially in the off-season. Management also sees a growth potential on new markets
thanks to new airline connections connecting the Tatras with London and the Baltic region. Following the lasting trend of demand for complementary services (described in Market
Analysis and Trends), Management expects further growth in the subsegments of Dining and Sports Services & Stores similar to the previous year. All these factors should generate
organic growth in the Group revenues and operating profitability. In the short term Management will be focusing on quality management, on increasing the quality of services provided and of Human Resources, and on active sales strategy also through the GOPASS program. In the midterm horizon Management plans to initiate realizing the project of modernization of
the Polish SON resort and to integrate it into the Group. It also expects to finalize the terms of the strategic investment into the modernization project of the Silesian Amusement Park in
Poland and to initiate its realization.

TMR’s Annual Report 2013/14 is available at www.tmr.sk from February 27, 2015.
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Tatry mountain resorts, a.s. (TMR) is the leader in tourism in the Central and Eastern Europe; it owns and operates attractive mountain
resorts and hotels. In the Low Tatras TMR owns and operates the resort Jasná Nízke Tatry and hotels Wellness hotel Grand Jasná, Boutique
Hotel Tri Studničky, Chalets Jasná De Luxe, Hotel Srdiečko, and Million Star Hotel. TMR is also the owner of Aquapark Tatralandia, the
largest Slovak aquapark with year-round operation, which besides water entertainment includes Tropical Paradise, a special tropical indoor
hall with sea water, as well as accommodation in bungalows and apartments of Holiday Village Tatralandia. In the High Tatras TMR owns
and operates the resort Vysoké Tatry with mountain areas of Tatranská Lomnica, Starý Smokovec and Štrbské Pleso, which TMR comanages.
In the High Tatras TMR also owns hotels Grandhotel Praha Tatranská Lomnica, Grandhotel Starý Smokovec, and Hotel FIS
Štrbské Pleso. TMR also owns 19% in Melida, a.s., which leases and operates the resort Špindlerův Mlýn in the Czech Republic. In Poland
TMR owns the Szczyrk resort. TMR also owns and leases to third parties hotels Slovakia, Kosodrevina, Liptov and Ski&Fun Záhradky a
Bungalovy. By the end of 2013 nearly EUR 190 mil. have been invested into development and modernization of TMR’s resorts. TMR shares
are traded on three European stock exchanges – in Bratislava, Prague, and Warsaw.