Compagnie des Alpes // 2020 Universal Registration Document

1 INTRODUCTION TO COMPAGNIE DES ALPES AND ITS ACTIVITIES Activities, markets and competition

The 2019/2020 fiscal year was very strongly marked by the Covid-19 pandemic and the containment measures decided by the governments of the countries in which Compagnie des Alpes operates resulted in a complete shutdown of the Group’s business lines to 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. It is for this reason that any comparison, in terms of activity or attendance, with FY 2018/19 is made difficult.

1.1 Activities, markets and competition

With more than 16.5 million visits received in 2019/2020 in its 24 (1) sites, Compagnie des Alpes is a major player in the leisure sector in Europe. One of the world leaders in ski area operations (2) , it manages 11 of the most important areas in France. It is also a major European player in leisure parks with 13 sites: 5 in France, 4 in Belgium, 1 in the Netherlands, 1 in Switzerland, 1 in Austria and 1 in Canada.

1.1.1 SKI AREAS (58.5% OF 2019/2020 GROUP CONSOLIDATED REVENUE IN 2018/2019)

As a secondary activity, the Group sells land to real-estate developers. At present, this activity has not exceeded 5% of total Ski areas revenue and has been limited to two ski areas – Les Arcs and Flaine. This business is conducted under the development concessions that are also described in the above-mentioned Note 1.14.As the land is held for sale, its net book value is recorded under inventories on the balance sheet (Chapter 5). 1.1.1.1 The global ski market (3) The global ski market is made up of close to 2,000 resorts in around 67 countries. It records a total of 400 million skier-days (including indoor ski slopes) and offers professional accommodation for 6 million, primarily concentrated in developed countries. In the 2019/2020 season (4) , the three countries that registered the highest number of skier-days were the United States (51.1 million), Austria (47.5 million) and France (44.9 million). Although skiing is a widespread activity, there are very few “large” resorts (a resort is considered “large” when it exceeds one million skier-days per season) and 83% of these are located in the Alpes.

The Group’s ski lift companies equip, maintain and operate ski areas. Their main task is to develop and manage natural areas in order to be able to offer their customers alpine skiing activities and high-altitude recreational activities in a way that respects the environment and offers optimal safety. The resorts where Compagnie des Alpes operates are all located in France, where the business model is based on very-long-term concession agreements. The characteristics and durations of these agreements are described in Chapter 5 (Note 1.14 to the Consolidated Financial Statements). Compagnie des Alpes is thus one of the key contributors to the local economy, alongside accommodation providers, local authorities and French ski schools. Their revenues are drawn from entrance fees for ski lifts. Expenses are related to the financing of facilities, personnel costs, taxes and local fees, and normal operating costs (maintenance, energy, insurance, etc.). In addition to its portfolio of 11 ski areas, Compagnie des Alpes holds minority interests in 4 French companies that operate the ski areas in Chamonix (37.5%), Avoriaz (20%), Valmorel (20%), and La Rosière (20%).

(1) The Les 2 Alpes ski area was removed from the scope of Compagnie des Alpes on 1 December 2020, i.e. after the end of FY 2019/2020. (2) There is only one other group operating ski lifts with the same number of skier-days as the Group. (3) Source: Laurent Vanat, “2019 International Report on Snow & Mountain Tourism”. (4) Source: Domaines Skiables de France – 2020 Indicators and Analysis.

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Compagnie des Alpes I 2020 Universal registration document