Compagnie des Alpes // 2020 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

8.1.1 Main impacts of first-time application (a) Impacts at the transition date The Group’s leases mainly concern land and buildings. Contracts are negotiated on an individual basis and may include various terms and conditions. The public service concession contracts of the Ski areas fall within the scope of IFRS 16 but generally provide for exclusively variable fees, based on ski lift revenue, and only contracts with a fixed minimum fee give rise to a restatement in accordance with IFRS 16. As of 30 September 2019, almost all of the Group’s contracts were classified as operating leases and leasing contracts. Lease payments were recognised as rent expenses and leasing contract expenses in

the income statement on a straight-line basis throughout the term of the contract. From 1 October 2019, the Group applied a single accounting and measurement model for all its leases, with the exception of short-term contracts and low-value asset contracts. The Group has recognised a lease liability on its balance sheet for lease payments and right-of-use assets representing the right to use the underlying assets. The application of IFRS 16 led the Group to recognise a lease liability of €132.3 million. It corresponds to the present value of the remaining rents, discounted using the lessee’s incremental debt ratio at 1 October 2019.

The lease liability at 1 October 2019 is consistent with the commitments at 30 September 2019:

(in millions of euros) OPERATING LEASE COMMITMENTS AND LEASING CONTRACTS AT 30 SEPTEMBER 2019 (+) Contracts meeting the definition under IAS 17 not disclosed in the commitments

137

24

(+) Leases under IAS 17 not disclosed in commitments

1

(+) Contract signed over first half of 2020 with retroactive application at 30 September 2019

4

(-) Low value contracts (-) Discounting effect

-3

-31

LEASE LIABILITIES AT 1 OCTOBER 2019

132

The right-of-use assets were valued for an amount equal to the lease liability, adjusted for any advance payments or debts not yet paid as appearing on the balance sheet at 30 September 2019. Impairment of the right to use a foreign site was recognised for an amount of €4.2 million. (b) Impacts over the period The carrying amount of the rights of use and the lease liability as well as the changes recorded during the period break down as follows:

Technical installations/ equipment

Rights of use (in thousands of euros) AT 1 OCTOBER 2019

Others fixed assets

Land

Buildings

Total Lease liabilities

60,637 51,107 -4,604

57,142

12,137

1,657

131,573

132,314

Increases

4,658

-49

131

55,847

55,740

Amortisation, depreciation and impairment Interest expenses on lease liabilities*

-10,134

-1,585

-423

-16,746

-2,618 -8,157

Lease payments*

Translation adjustments AT 30 SEPTEMBER 2020

-204

-204

-236

107,140

51,462

10,503

1,365

170,470

177,043

* Change in lease liabilities in the statement of cash flows

The renewal for 30 years of the operating lease of the current Futuroscope park was included in the increases for the year, in view of the date of acceptance of the offer by the City Council being 3 July 2020.

176

Compagnie des Alpes I 2020 Universal registration document