Compagnie des Alpes // 2020 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

Impairment test results Due to the new shutdown of its activities since 28 October 2020, the sharp slowdown in activity expected for FY 2020/2021 and the uncertainty weighing on the short and medium-term outlook triggered by the global health crisis, the Group recognised an impairment of the carrying amount of its goodwill for a total amount of €48.8 million over the year. These impairments are based on the “average” scenario as described above, which, before impairment, showed a negative comfort margin of €41.4 million for the Leisure parks. Overall sensitivity of tests to the WACC and to the perpetual growth rate Sensitivity tests are conducted by varying the basic assumptions underpinning the business plan (change in sales volume) or the discount rate. It should be noted that impairment tests are carried out at the segment level in order to reflect the measurement of value creation, the monitoring of performance and the level of strategic decision-making within the Group. Overall sensitivity of the tests to the WACC and to the growth rate according to the “medium” scenario Ski areas (excluding companies accounted for under the equity method) The table below shows the positive difference between the company values and the capital used (€726.3 million).

Discount rate

6.5% 154.0 199.2 249.0 304.0 365.1

7.0% 62.4 99.7 140.4 185.0 234.0

7.5% -15.0 16.3 50.1 86.9 127.0

1.0%

1.25%

LT growth rate

1.5%

1.75% 2.0%

Leisure parks The table below shows the positive difference between the company values and the capital used (€635.9 million).

Discount rate

6.5%

7.0% -60.7 -31.8

7.5%

1.5%

11.7 47.4 87.2

-120.8

1.75% 2.0% 2.25%

-97.0 -71.0 -42.6 -11.3

LT growth rate

0.0

131.6 181.5

35.2 74.3

2.5%

Overall sensitivity of the tests to the WACC and to the growth rate according to the “degraded” scenario: Ski areas (excluding companies accounted for under the equity method) The table below shows the positive difference between the company values and the capital used (€726.3 million).

Discount rate

6.5% 89.0 134.3 184.0 239.0 300.1

7.0% -2.4 34.9 75.6 120.2 169.2

7.5% -79.5 -48.3 -14.5

1.0%

1.25%

LT growth rate

1.5%

1.75% 2.0%

22.3 62.4

The sensitivity analysis carried out in relation to the assumption that the resorts would be closed throughout the winter season would have the sole consequence of reducing the “headroom” calculated on the Ski areas’ CGU but would not result in an impairment loss. Leisure parks The table below shows the positive difference between the company values and the capital used (€635.9 million).

Discount rate

6.5% -43.4 -8.8 29.6 72.6 121.0

7.0%

7.5%

1.5%

-113.4 -85.4 -54.6 -20.6

-171.5 -148.4 -123.3

1.75% 2.0% 2.25%

LT growth rate

-95.8 -65.5

2.5%

17.2

159

Compagnie des Alpes I 2020 Universal registration document