Compagnie des Alpes // 2020 Universal Registration Document

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

The figures for the 2019/2020 season are not very representative because of the health crisis. Nevertheless, in 2018/19, the European ski market was estimated at 45 million people, i.e. around 220 million skier-days. Based on average receipts of €30 per skier-day, this represents a market of €6.5 billion. There are numerous market players in Europe, most of which operate on just one site. Compagnie des Alpes, along with Swedish group Skistar, which is listed on the Stockholm stock market, is one of the only groups to operate several sites. There are four major skiing countries in Europe: France, Austria, Switzerland and Italy. Only France and Austria have more than ten resorts welcoming more than one million skiers per season. It is worth noting that the percentage of concession area used is 21% in France, 62% in Austria and 70% in Italy (1) . According to a study conducted by Domaines Skiables de France, a French ski pass costs less than an Austrian ski pass (11%) or a Swiss one (17%). France’s leading position in Europe is largely due to the strength of its domestic market, which accounts for approximately 70% of its visitors, while the vast majority of visitors to Swiss (45%) and Austrian (65%) resorts are foreigners. The Compagnie des Alpes Group is the leading European operator of ski resorts, as well as one of the global market leaders. The two largest operators after Compagnie des Alpes, Sofival (Avoriaz, Valmorel and La Rosière) and S3V (Courchevel, La Tania and Méribel Mottaret), each hold a market share of around 5% (3) . Competitive advantages of Compagnie des Alpes Compagnie des Alpes’ competitive advantages relate mainly to the Group’s resort locations: it has chosen to operate exclusively in resorts with vast, high-altitude ski areas that are well known in Europe, and which have considerable professional accommodation capacity. 1.1.1.4 Main ski areas operated by Compagnie des Alpes Paradiski: La Plagne, Les Arcs and Peisey-Vallandry With its 425 kilometres of slopes on close to 15,000 hectares, Paradiski is one of the world’s largest ski areas. The Vanoise Express, which is the highest-capacity cable car in the world, links the three renowned resorts that make up this ski area: La Plagne, Les Arcs and Peisey- Vallandry. Number of lifts Number of resorts Number of large resorts 3,346 3,028 1,446 2,127 325 254 186 349 13 16 5 7

BREAKDOWN OF THE GLOBAL SKI MARKET BY GEOGRAPHICAL AREA (IN NUMBER OF SKIER-DAYS)

1 % Miscellaneous

15 % Asia-Pacific

44 % Europe – Alps mountain range

21 % America

9 % Eastern Europe and Central Asia

10 % Rest of Western Europe

1.1.1.2 Market and competition in Europe (1) Very few skiers take long-haul flights to go skiing on the other side of the world. Consequently, the real market for Compagnie des Alpes is Europe.

Country France Austria

Size of ski area (km 2 )

1,180 1,050

Switzerland

950

Italy

1,350

* Resorts recording over one million skier-days.

1.1.1.3 The French ski market The French ski market is primarily a network of 250 internationally renowned ski areas spread between 6 mountain ranges varying greatly in terms of size and offering: Alps, Massif Central, Pyrenees, Vosges, Jura and Corsica. However, there are also 325 resorts with at least one ski lift, 238 of which belong to Domaines Skiables de France (DSF), the professional body for ski area operators. During the 2019/2020 season, 44.9 million skier-days were sold, with Domaines Skiables de France estimating an average receipt per skier- day of €27.2. The French ski market thus amounts to €1,221 million. The vast majority of customers are French (72%). British customers represent 10%, followed by Belgians at 5%, and the Dutch at 3% (2) . At 30 September 2020, Compagnie des Alpes’ revenue from its ski areas amounted to €360.2 million, with a total of 11.1 million skier- days. The market share of Compagnie des Alpes and its consolidated companies thus amounted to almost 30% in terms of value and over 25% in terms of volume.

(1) Source: Laurent Vanat, “2019 International Report on Snow & Mountain Tourism”. (2) Source: Domaines Skiables de France – 2019 Indicators and Analysis, October 2019. (3) Source: Montagne Leaders, No. 263 – September and October 2017.

21

Compagnie des Alpes I 2020 Universal registration document