Compagnie des Alpes // 2021 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

DAL filed an application against the municipalities of Deux Alpes and Saint-Christophe to pay it €6.4 million for the early termination of the concession agreements

l the payment by the municipalities for the use of land required for the operation of the ski lifts, even though this land belongs to DAL itself. Following the failure of the conciliation procedure and a formal notice to the delegating municipalities from DAL which was unsuccessful,

Note 1

Accounting principles and policies

The Group presents its share of net income of associate companies on a separate line of the income statement, below the operating income line. The Group does not have any joint ventures. All internal transactions and positions are eliminated, either in full for fully consolidated companies, or proportionally to the Group’s interest in the case of companies consolidated using the equity method. Internal margins are eliminated insofar as their individual amounts exceed €500 thousand or a cumulative amount of €1 million. The list of consolidated companies can be found in Note 4.2.

The main accounting policies applied in the preparation of the consolidated financial statements are outlined below. Unless otherwise indicated, they are applied consistently across all reporting periods presented. Pursuant to Regulation (EC) No 1606/2002 of 19 July 2002 on the application of international accounting standards, the annual consolidated financial statements of the Compagnie des Alpes Group for the reporting period ended 30 September 2021 were prepared in compliance with the International Financial Reporting Standards (IAS/ IFRS) as adopted by the European Union at 30 September 2021, and in accordance with the historical cost principle, with the exception of certain financial assets and liabilities, which were measured at their fair value, as required under IFRS. The accounting principles used are identical to those applied for the 2020 financial year. The Group has not applied, in advance, the standards, amendments or interpretations applicable for financial years after 30 September 2021, whether or not adopted they have been by the European Union. In addition, the Group has not applied the IFRS IC decision on the methods for allocating the cost of certain post-employment benefits, the amount of which depends on seniority and is capped beyond a certain length of service, while being conditional on the beneficiary being employed by the Group at retirement: given the reporting date of 30 September for the financial statements, it was not possible to accurately assess the associated impacts. According to an initial estimate, the pre-tax impact on shareholders’ equity would amount to approximately €3.2 million at 1 October 2019 and 30 September 2020, and €4 million at 30 September 2021. Key assumptions and estimates The preparation of the consolidated financial statements in accordance with IFRS is based on assumptions and estimates made by the Executive Management to calculate the value of assets and liabilities at the reporting date and the income and expense items for the year. The actual results may differ from these estimates. The main sources of uncertainty relating to key assumptions and assessments relate to goodwill (Note 6.1), estimates of the value of associates (Note 6.4) and financial assets at fair value (Note 6.7), as well as the impacts of the Covid-19 crisis (see “Highlights”). CONSOLIDATION METHODS The companies in which the Group has exclusive control are fully consolidated. Associate companies are entities that the Group does not control but over which it exercises significant influence, usually with 20% to 50% of the voting rights. Shareholdings in associate companies are accounted for using the equity method and initially recognised at their acquisition cost. The Group’s interest in associate companies includes goodwill (net of accumulated impairment) as identified at the time of acquisition. 1.1

1.2

APPROVAL OF THE FINANCIAL STATEMENTS OF CONSOLIDATED COMPANIES

The consolidated financial statements cover a 12-month period, from 1 October 2020 to 30 September 2021 for all companies, with the exception of the Compagnie du Mont-Blanc group which is consolidated using the equity method over the period from 1 September 2020 to 31 August 2021.

1.3

TRANSLATION OF FINANCIAL STATEMENTS AND TRANSACTIONS EXPRESSED IN FOREIGN CURRENCIES

The financial statements of foreign subsidiaries are translated into the presentation currency (euro) by applying the following methods: l the balance sheet (including goodwill) is translated at the closing rate; l the statement of comprehensive income is translated at the average exchange rate for the period; l all resulting translation gains or losses are recognised in a separate component of shareholders’ equity. Translation gains or losses resulting from the translation of net investments in foreign operations and loans and other currency instruments designated as hedges on said investments are recognised in shareholders’ equity upon consolidation. OPERATING SEGMENTS In accordance with IFRS 8 “Operating Segments”, the segment information presented is prepared on the basis of internal management data used for the analysis of business performance and the allocation of resources by the Chief Executive Officer and the Directors of the Executive Committee, who form the Group’s main operational decision-making body. An operating segment is a distinct component of the Group engaged in activities likely to generate revenues and incur expenses, whose operating results are regularly reviewed by the operational decision- making body and for which separate information is available. Each operating segment is monitored individually in terms of internal reporting, based on performance indicators common to all sectors. 1.4

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Compagnie des Alpes I 2021 Universal registration document