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Managing Director’s Review

The past year has been challenging. Last year’s winter, which was short and lacked snow,
favoured neither holidaymakers nor tourist businesses. Neither has the general economic
situation been very bright: the Finnish economy has now dragged along for three years at a
zero level of growth. An additional cause for concern came from the east with the crisis in
Russia and in particular Ukraine. Many factors have thus affected Holiday Club Resorts Oy’s
operating environment.

Despite these factors of uncertainty, however, in the 2013-14 financial period Holiday Club
recorded the best result in its history in terms of sales of timeshare. This success is attribut-
able to high-quality holiday products that are at the right price and well located. Our custom-
ers know our products and have faith in them.

Holiday Club was also able to respond to demand as, during the last financial period, new
timeshare and Villas apartments were built, particularly in Katinkulta, Saimaa and Kuusamon
Tropiikki. The 45-apartment Villas Katinkulta Spa 2 complex was completed in June right next
to the Katinkulta spa hotel. Investments are continuing steadily: in Saimaa, several high-
quality holiday apartments are currently under construction.

In July, Holiday Club’s ownership structure was strengthened with Mahindra Holidays & Re-
sorts becoming the new anchor shareholder of the company. The aim of the two companies
is to continue deepening co-operation and to study growth possibilities in Europe, among
other things.

The prospects for the financial period that has just begun are challenging both for Holiday
Club and for Europe as a whole. Although our net sales increased slightly over last year, our
profitlevel was insufficient. Because of this, we will now focus even more strongly on improv-
ing our profitability and on easing our balance sheet structure.

I would like to thank our customers and partners for their faith in us. To our board of directors
and staff, I extend my thanks for a work-filled and challenging year.

Vesa Tengman

Holiday Club Resorts Oy Annual Report 2013–2014 3