Compagnie des Alpes // 2020 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

5.3.2 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

C NTENT

NOTE 6 INFORMATION ON THE CONSOLIDATED BALANCE SHEET

NOTE 1 ACCOUNTING PRINCIPLES AND POLICIES

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157

NOTE 2 MANAGEMENT OF CAPITAL AND RISKS

150

NOTE 7 INFORMATION ON THE STATEMENT OF CASH FLOWS

174

NOTE 3 ORGANISATIONAL STRUCTURE

OF THE COMPAGNIE DES ALPES GROUP

152

NOTE 8 IMPACT OF NEW IFRS STANDARDS

175

NOTE 4 SCOPE OF CONSOLIDATION

152

NOTE 9 OTHER DISCLOSURES

179

NOTE 5 INFORMATION ON THE CONSOLIDATED INCOME STATEMENT

154

Group overview The Compagnie des Alpes Group’s main business activity is the operation of leisure facilities. It operates mainly in Ski areas and Leisure parks. The Group’s parent company is Compagnie des Alpes, whose headquarters are located at 50-52 boulevard Haussmann, 75009 Paris. The full-year 2019/2020 consolidated financial statements were approved by the Board of Directors on 7 December 2020, which authorised their publication. Figures are in thousands of euros, unless otherwise indicated. Highlights of the year Consequences of the Covid-19 pandemic Impacts of the Group’s activities The Covid-19 pandemic and the lockdown measures decided by the governments of the countries in which the Group operates, have led to a complete halt in the activity of the Group’s business lines as of 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 until a reopening date between the end of May (Holland, Austria), mid-June (France) and the beginning of July (Belgium). The CDA Group announced that it has abandoned the objectives communicated for 2020. Other financial impacts The Covid-19 pandemic has led to a significant reduction in revenue. Estimated impacts of the Covid-19 health crisis on the annual financial statements for 2020: The impact of the health crisis was a reduction in the Group’s revenue of around €233 million compared to the previous fiscal year, while both business lines were growing when the lockdown began on 14 March 2020. The estimated 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. 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 concession (PSC) for 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 municipal councils of Les Deux Alpes and Saint-Christophe-en- Oisans have approved the choice of a new operator, Société Touristique de l’Alpe d’Huez (SATA), as the recipient of the PSC contract for the construction and operation of the Deux Alpes ski area.

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Compagnie des Alpes I 2020 Universal registration document