Compagnie des Alpes // 2020 Universal Registration Document

4 STATEMENT OF NON-FINANCIAL PERFORMANCE Societal challenges

BREAKDOWN OF VALUE IN 2019

Through the Foncière Rénovation Montagne initiative, Compagnie des Alpes is trying to create a knock-on effect which encourages local authorities and owners to put their renovated properties back into the sales circuit. Since the start of the initiative, 478 properties have been purchased and renovated (for a total cost of €11 million). The real estate-accommodation policy The Group has a strategy to maximise occupation of the available beds at the resort, to support tourism and the local economy: l the network of the Compagnie des Alpes Group’s real estate agencies (28 offices) manages around 2,950 lots, or 13,500 beds. The target is to achieve an above-average apartment occupancy rate (on average a few percentage points higher than the resort agency average) to attract skiers, and also money, to the resort; l the Group’s real estate agencies offer lodge owners assistance with any renovations and upgrades required to help them obtain quality labels, thus equipping them to combat the “cold beds” phenomenon; l CDA invests in preserving and rehabilitating standard beds, or intervenes to prevent the change of use of certain buildings, in particular hotels. For example SAP has completely refurbished the Baccara building (460 beds) in Les Coches to bring them in line with modern tastes and standards. Similarly our teams have renovated and brought back into service a time-share building (300 beds) which would have been sold off individually at Les Ménuires; l CDA also supports new projects by participating financially in building ownership or in management structures, or in the sale of land, or in undertakings to purchase. l both for new beds and renovation projects, the Group actively participates in the search for an operator or investor until the completion of operations. In total, since 2014, the Group has operated 5,961 hot beds (6,400 since 1998), half of which have been upgraded, and the other half are new beds. 4.4.1.4 Sharing value Since 2019, the Group has been measuring both in real terms and prospectively the destination of its financial flows to its stakeholders (suppliers, local authorities, etc.) and constituent parties (employees, shareholders) over a fiscal year. As a result, more than 90% of flows go to: l suppliers, the vast majority of which are based in the regions (see 4.4.1.1); l employees, through salaries, incentives and profit-sharing; l the work tool located in the regions, through sustained investments; l the State and local authorities through corporation tax, social security contributions, taxes and repayments under PSC contracts.

6.2 % External growth and real estate partnerships

1.6 % CDA shareholders

29.7 % Supplier spend

18.2 % Local authorities and State

20.8 % Investments

22 % Salaries

This analysis of flows (change in net debt) shows the major socio- economic role of the Group in the regions where the sites are located. 4.4.1.5 Adapting to the consequences of climate change Changes in demand for a leisure activity, which is by nature non- essential, are difficult to predict in a low-carbon world imposing new standards. The Group is therefore working, firstly, to reduce the negative externalities associated with its activities, and equally in parallel with the long-term adaptation project in order to anticipate the leisure activities of tomorrow. Ski area operations The effects of climate change have already been felt, particularly in the Ski areas with a shorter glacier skiing season (summer, autumn), a considerable variability of natural snowfall in recent seasons, and uncertainty about the duration of temperature windows for the production of artificial snow. To this we will likely have to add an increase in extreme events and the impact of the melting of the permafrost which will require additional maintenance of the infrastructures affected. Despite difficult starts to the seasons, Compagnie des Alpes Ski areas remain resilient for the time being due to the fact their resorts are at high altitude or provide access to high altitude ski areas. An alternative solution is to use the first section of the ski lifts as a lift, thereby offering to access the ski area even when conditions are difficult on the low-altitude slopes. The generation of operating conditions, and the associated flows, is the first adaptation. Ski areas are also using technology to adapt and guarantee the start and end of the season by producing artificial snow, with around 40% of the slope areas equipped according to snow level priorities. Production networks have therefore adapted to the capacity required and the water storage facilities with around 10% of total investment being made in this area on average. In addition, optimisation work and equipment renewal are providing higher yields while limiting the rise in operating costs and the consumption of resources (energy primarily). Grooming techniques are also evolving in order to optimise snow quality and increase its useful life. Grooming takes a range of parameters into account: weather forecasts, a precise calculation of snow volumes considered necessary, satellite or radar measurements of snow thickness. The orientation of the slopes is also examined,

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Compagnie des Alpes I 2020 Universal registration document