Compagnie des Alpes // 2020 Universal Registration Document

5 FINANCIAL INFORMATION

Parent-company financial statements

The bond issue (for €100 million in 2014) is accompanied by a shareholder clause stipulating that the direct or indirect shareholding of Caisse des Dépôts in the capital of Compagnie des Alpes SA must be greater than or equal to 33.33%. If, without prior consent by the lending institution, Caisse des Dépôts were to directly or indirectly

own less than 33.33% of the share capital and voting rights of the borrower, the lender could immediately call in the loan. The bonds come with the obligation to respect a financial ratio based on the consolidated financial statements of Compagnie des Alpes Group.

The ratio that must be respected is the following:

Covenant Ratio at 30/09/2020

Consolidated net debt/Consolidated EBITDA

N/A

8.1

The Group obtained an agreement from all of its banking and bond partners to suspend its debt leverage covenant (covenant holiday) for the next two dates on which it was to be tested, namely 30 September

2020 and 31 March 2021. Before obtaining the lenders’ agreement to suspend the debt leverage covenant, the ratio to be respected was less than 3.50.

3.10 OPERATING LIABILITIES Operating liabilities break down as follows:

At 30/09/2020

At 30/09/2019

(in thousands of euros)

Trade payables

7,631 6,586

6,498 7,390

Liabilities towards staff and social security bodies

Tax liabilities (VAT and other taxes)

887

526

Customer credit notes

4,242

2,844

TOTAL

19,346

17,258

3.11

OTHER LIABILITIES AND ADJUSTMENT ACCOUNTS

Other liabilities break down as follows:

At 30/09/2020

At 30/09/2019

(in thousands of euros)

Tax consolidation current accounts

5,531

4,214

Corporate tax liabilities

-

212

Other debt

546

1,036 5,462

TOTAL

6,077

Note 4

Notes relating to the income statement

4.1 REVENUE Revenue amounted to €29.5 million. These mainly consist of services provided by the Company on behalf of its subsidiaries (operational services and holding company services) and staff seconded to subsidiaries. Revenue was down €1.5 million compared to the previous fiscal year due to a savings plan initiated in the context of the pandemic which resulted in a reduction in management fee costs re-invoiced to subsidiaries. OPERATING EXPENSES Operating expenses net of reversals of provisions and other income amounted to €42 million, up by €0.4 million compared to the previous year. 4.2

This change is due to: l an increase in personnel costs of €1 million, following in particular the payment of an activity bonus (PEPA) to Group employees for the second consecutive year, fully paid for by CDA SA; it should be noted that efforts to reduce salaries were made by Executive Management, the Executive Committee and site managers during the period of confinement and closure of the Group’s sites; l an increase in depreciation and amortisation due to major IT projects and lower provision reversals than in the previous year; and l is partially offset by significant savings on external services of €2 million (reduction in fees and travel expenses following the pandemic and lockdown).

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Compagnie des Alpes I 2020 Universal registration document