Compagnie des Alpes - 2017 Registration Document

2 RISK FACTORS

Insurance – risk cover

2.3.4 RISKS RELATED TO UNAVAILABILITY OF FACILITIES Group sites are exposed to risks related to fire, machinery breakdown or natural disasters. Prevention and protection measures of both a technical and human nature have been implemented.

The Group gives priority to safety and to the expenditures necessary to maintain facilities in perfect operating condition. In this regard, Compagnie des Alpes has implemented an assessment and prevention process and produced a specific guide on the prevention of damage to property and related business interruption, thereby strengthening its policy in this area.

Accident prevention experts from the Group’s insurers and broker visit its sites regularly to make the required recommendations and monitor the prevention measures implemented.

2.3.5 DEPENDENCE ON KEY SUPPLIERS

Certain resources critical to Group activities can be obtained only from a limited number of suppliers. These include ski lifts and ticketing systems for Ski areas.

No bankruptcy risk for these suppliers has been identified. However, the Group has taken measures to limit this risk by reducing its technical dependency and by diversifying its supply sources.

2.3.6 RISKS RELATED TO IT SYSTEMS The Group is dependent on IT systems, particularly for its financial activities, administration and ticketing. For this reason, the Group has put in place an IT risk management policy which is coordinated by the Risk, Insurance and Crisis Management Department, with the support of the IT Systems Department and its Head of Information System Security. This policy mainly covers the following key areas: z protection of the Group’s email systems from external attacks, such as malware and spam; 2.4 Insurance – risk cover The Group has entered into liability insurance programmes, civil liability programmes for de facto and de jure managers and property damage insurance, and cover for corresponding business interruption with leading insurance companies. All Group companies that are more than 50%-owned by the Group, or for which the Group has responsibility for insurance, are covered by these liability insurance programmes. LIABILITY INSURANCE Renewed on 1 st October, the civil liability policy covers operating, post-delivery, and professional liability, and contains the exclusions generally applied on the insurance market. The principal sub-limits are 2.4.1

z making the Group’s sales websites more resistant to cyber attacks; z backing up and restoring all application environments so that activity can be restarted more efficiently; z raising the awareness of the Group’s employees of the need for controlled and secure use of our IT system. The Group also uses e-commerce sites and sells electronic tickets and ski passes. It therefore closely monitors the integrity of its commercial and internal websites.

These Group programmes were the subject of a call for tenders in 2017, resulting in a significant improvement in insurance cover for liability as well as property damage. In addition to these programmes, Group companies have taken out mandatory insurance policies, such as civil liability for vehicle fleets, as well as other specific policies covering items such as collectibles.

for criminal negligence, accidental pollution, and general contracting civil liability. A policy dedicated to Environmental Liability completes the cover.

2.4.2 INSURANCE POLICY COVERING DAMAGE TO PROPERTY AND RELATED BUSINESS INTERRUPTION

Taken out on 1 st October, the insurance policy covering property losses is an “all risks except” policy containing the exclusions generally applied on the insurance market, and principally covers risks of fire, natural disasters, breakdown of machinery, and related business interruption.

This programme is partly reinsured by Loisirs Ré, a wholly-owned subsidiary of the Group.

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Compagnie des Alpes I 2017 Registration Document