Compagnie des Alpes // 2021 Universal Registration Document

4 STATEMENT OF NON-FINANCIAL PERFORMANCE Societal challenges

listing, etc.). The overall aim is to improve the appeal of the whole area. In return, this generates economic benefits for the entire region and local stakeholders. Moreover, the Group companies contribute to the building and maintenance of resort access roads, primarily through their funding of the Tarentaise road system and RN 90, and also support municipal infrastructures by financing the local and regional shuttles and accommodation. 4.4.1.3 Supporting the maintenance of “warm” beds in resorts The Group plays a leading role on issues beyond the simple management of ski lifts. This had led it to turn its attention to accommodation. Foncière Rénovation Montagne The aim of Foncière Rénovation Montagne is to invest in local real estate with a view to acquiring ageing properties to renovate. By renewing the appeal of these properties, it helps to combat the “cold beds” problem in mountain regions. The “cold beds” phenomenon relates to accommodation that is rarely occupied by its owner and rarely offered for rent or, when it does come on the rental market, nobody wants to rent it: in other words, empty apartments. The resulting imbalance is harmful to the economy of the resorts and the poorly-maintained accommodation can sometimes reduce the appeal of an entire area. Thus, these “cold beds” block constructed but non- productive real estate at a time when real estate resources are in short supply, particularly in the mountains. Through the Foncière Rénovation Montagne initiative, Compagnie des Alpes is trying to create a knock-on effect which encourages local authorities and owners to put their renovated properties back into the sales circuit. Since the start of the initiative, 478 properties have been purchased and renovated (for a total cost of €11 million). The real estate-accommodation policy The Group has a strategy to maximise occupation of the available beds at the resort, to support tourism and the local economy: l the network of the Compagnie des Alpes Group’s real estate agencies (2,950 offices) manages around 2,950 lots, or 13,500 beds. The target is to achieve an above-average apartment occupancy rate (on average a few percentage points higher than the resort agency average) to attract skiers, and also money, to the resort; l the Group’s real estate agencies offer owners the opportunity to obtain certification of their homes, and support them with renovations and possible compliance. They are therefore also on the front line in the fight against cold beds via their activities as trustees; l CDA invests in preserving and rehabilitating standard beds, or intervenes to prevent the change of use of certain buildings, in particular hotels. For example SAP has completely refurbished the Baccara building (460 beds) in Les Coches to bring them in line with modern tastes and standards. Similarly our teams have renovated and brought back into service a time-share building (300 beds) which would have been sold off individually at Les Menuires; l CDA also supports new projects by participating financially in building ownership or in management structures, or in the sale of land, or in undertakings to purchase, or by simply bringing parties together.

l both for new beds and renovation projects, the Group actively participates in the search for an operator or investor until the completion of operations. This is the case, for example, with the recent renovation (opening in 2021) of around 400 hotel beds in Flaine, on a portfolio that risked being sold off. In total, since 2014, the Group has operated 7,291 hot beds (7,727 since 1998), half of which have been upgraded, and the other half are new beds. 4.4.1.4 Sharing value with the ecosystem Since 2019, the Group has been measuring both in real terms and prospectively the destination of its financial flows to its stakeholders (suppliers, local authorities, etc.) and constituent parties (employees, shareholders) over a financial year. As a result, more than 90% of flows go to: l suppliers, the vast majority of which are based in the regions (see 4.4.1.1); l employees, through salaries, incentives and profit-sharing; l the work tool located in the regions, through sustained investments; l the State and local authorities through corporation tax, social security contributions, taxes and repayments under PSC contracts.

BREAKDOWN OF VALUE IN 2021

0.2 % Sponsorship

3.8 % External growth and partnerships

2.0 % Banks

0.0 % CDA shareholders

11.5 % Local authorities, State and social organisations

31.8 % Suppliers (Opex)

24.4 % Investments (Capex)

26.3 % Salaries

This analysis of flows (change in net debt) shows the major socio- economic role of the Group in the regions where the sites are located. 4.4.1.5 Adapting to the consequences of climate change The change in demand for a leisure activity, which is by nature dispensable, is difficult to predict in a low-carbon world imposing new standards and new physical risks, as well as during the transition phase. The Group is therefore working, firstly, to reduce the negative externalities associated with its activities, and equally in parallel with the long-term adaptation project in order to anticipate the leisure activities of tomorrow. Ski areas operations The effects of climate change have already been felt, particularly in the Ski areas with a shorter glacier skiing season (summer, autumn), a considerable variability of natural snowfall in recent seasons (in particular, at the start of the season), and uncertainty about the reduction in available temperature windows for artificial snow-making.

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Compagnie des Alpes I 2021 Universal registration document