Compagnie des Alpes // 2020 Universal Registration Document

5 FINANCIAL INFORMATION

Analysis of consolidated results and sectors

5.1 Analysis of consolidated results and sectors

5.1.1 ANALYSIS OF GROUP RESULTS Highlights of the year FY 2019/2020 reflects three distinct periods. It started off quite satisfactorily during most of the first half of the year, with activity in line with the growth trajectory of previous years. Then, in mid-March, all of the Group’s Ski areas and Leisure parks were closed and only gradually reopened between the end of May and the beginning of July, in accordance with the re-opening procedures implemented in the various countries where the Group operates. Lastly, since it restarted its activity at the beginning of the summer, the Group has recorded a significant drop in attendance at its Leisure parks compared with the same period last year as a result of the pandemic. The Covid-19 pandemic and the containment measures decided by the governments of the countries in which it operates led to a complete halt in the Group’s business lines from 14 March 2020. The winter season of the Ski areas was definitively stopped on this date and the activity of the Leisure parks was suspended. While keeping the health and safety of their employees, customers and other stakeholders as a priority, the Group’s sites restarted their activities between the end of May and the beginning of July 2020 and implemented the necessary actions to limit the impact of the crisis on their profitability. Due to the second lockdown in Europe at the end of October, all of the Group’s sites were closed again. The CDA Group announced that it has abandoned the objectives communicated for 2020. Concerning the next fiscal year, the new lockdown decided at the end of October, the lack of visibility on the resumption of activities and the impact of the pandemic on the activity for 2020/2021, and more particularly on the activity of the Ski areas, make it impossible to set new targets for the Group. Other financial impacts The impact of the health crisis was a reduction in the Group’s revenue of around €233 million. The impact by business line is detailed below: l Ski areas: €84 million; l Leisure parks: €149 million. Current operating income was affected by the loss of the business lines’ recurring operating income due to this decline in revenue and fixed costs, despite the flexibility measures implemented. Group companies incurred additional costs related to the health crisis amounting to approximately €5 million. They had recourse to partial unemployment benefits, for which they received €13.5 million in benefits. The companies also benefited from exemptions from social security charges over the period from February to May 2020, the impact of which is particularly significant in the ski areas. Finally, given the impact of the pandemic on the risk rate and the Group’s activities, the Group recognised an impairment of goodwill in the amount of €48.8 million and an impairment of property, plant and equipment, financial assets and equity-accounted investments in the amount of €16.5 million. Consequences of the Covid-19 pandemic Impacts of the Group’s activities

Business continuity At 30 September 2020, the Group had net financial debt of €647.7 million, including a €200 million state-guaranteed loan. It also has a significant amount of undrawn confirmed financing at its disposal: l €170 million in medium- and long-term loans can be drawn upon at any time; l for short-term requirements, €124 million is available at any time in the form of confirmed overdrafts; l in addition, cash and cash equivalents amounted to €16.5 million. There is no realistic scenario to date that leads us to believe that the Group will not have the means to ensure business recovery and continuity of operations beyond 30 September 2021. Public service agreements relating to the Les 2 Alpes ski area The operation of the Les 2 Alpes ski area was based on three public service concession contracts initially signed with the municipalities of Venosc, Mont-de-Lans and Saint-Christophe-en-Oisans (up to 2023/2024). On 28 November 2019, the municipalities delegating the ski area notified Deux Alpes Loisirs, a subsidiary of the Compagnie des Alpes Group, of their decision to terminate the three current public service concessions in advance, for reasons of general interest, in order to allow a competitive bidding process for the establishment of a single public service concession for the entire area, which would start on 1 December 2020. This termination was conditional on a successful tender. The municipalities of Deux Alpes and Saint-Christophe-en-Oisans submitted to their municipal councils in February 2020 the choice of a new operator, Société Touristique de Alpe d’Huez (SATA), as the recipient of the PSC contract for the construction and operation of the Deux Alpes ski area. The contract was definitively signed in June 2020. As a result, the Group recognised as assets and liabilities held for sale at 30 September 2020 all the property, plant and equipment and intangible assets and liabilities concerned for €59.4 million and €11.9 million respectively. Deux Alpes Loisirs is compensated in respect of the early termination, for the loss of earnings over the remaining term of the contracts. In accordance with IFRS 16 and the reduction in the duration of contracts resulting from termination, the recognition of this indemnity has been staggered until the effective date of such termination on 1 December 2020. An income of €3.8 million was thus recognised at 30 September 2020. Changes in IFRS For the first time, the Group applied, at 1 October 2019, IFRS 16 relating to leases under the simplified retrospective method. As a result, the results for FY 2018/19 have not been restated.

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Compagnie des Alpes I 2020 Universal registration document