Compagnie des Alpes // 2021 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

1.6 REVENUE Sales of tickets (ski lift passes and admission fees to parks) are recognised in the reporting period in which visitors use the facilities of the Compagnie des Alpes Group. Prepaid tickets that will be used during the following period are only recognised in income when used for admission to a site. Unused prepaid tickets are recognised as deferred income. Services are recognised in income when the service is rendered. The sale of merchandise (shops and food services) is recognised when realised. In the consulting business, revenues relate to the invoicing of service and management consulting contracts. This happens when the services rendered are completed. In the tour-operator business, revenue depends on the distinction between agent and principal. When the Company acts as an agent, revenues relate to the commissions collected and when it acts as principal and bears notably the risks that come with owning inventory, it recognises revenue for the total amount of the price expected in exchange of goods or services provided and the amount paid to the third party is recognised as an expense. EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTISATION (EBITDA) EBITDA is the key line item used by the Group to represent the operating performance of its various activities. It includes the income and expense items that are directly related to current operations, and is calculated before the cost of holding assets (amortisation, depreciation and impairment), other operating income and expenses, net financial income and income tax. The items comprising operating income that are not directly related to current operations (because of their nature, frequency and/or relative significance) are recognised in “other operating income and expenses”. These mainly include: l capital gains or losses from the disposal of shareholdings; l costs generated by the closure of a site; l restructuring costs; l any other income and expense that is easily identifiable, unusual and significant, and the nature of which is not directly related to current operations. 1.7 1.8 OTHER OPERATING INCOME AND EXPENSES An asset is classified as “available for sale” only if a plan has been put in place by management to sell the asset, if the asset is available for immediate sale in its present condition and if the sale is highly probable within a 12-month time-frame. At the time of initial recognition as “held for sale”: l non-current assets and groups of assets that are intended to be sold are recognised at the lower of their book value and fair value less costs to sell; l amortisable assets are no longer amortised from the date on which they are classified as assets held for sale. 1.9 NON-CURRENT ASSETS AVAILABLE FOR SALE AND DISCONTINUED OPERATIONS

The segments presented under segment information are operating segments or groupings of operating segments. They correspond to the Group’s main business lines. The breakdown of operating segments reflects the Group’s organisation. The management data used to assess the performance of a segment are prepared in accordance with the IFRS principles applied by the l “ Ski areas ”: this business activity mainly concerns the operation of the ski lifts, the maintenance of slopes and the four-season mountain diversification business activity; l “ Leisure parks ”: this segment covers the operation of theme parks, combined amusement and animal parks, water parks, wax museums and tourist sites. Its revenue figures include admission tickets, restaurants, shops and accommodation; l in addition, “ Holdings and supports ” include: l on the one hand, the holding companies and operational support subsidiaries (including CDA SA and CDA Domaines Skiables, its financial subsidiary CDA Financement, its reinsurance subsidiary Loisirs-Ré and the company Ingénierie de Loisirs), l on the other hand, international consulting service businesses (CDA Management and CDA Beijing), l lastly, the activities of tour operators, travel agencies and other real estate businesses (including the Travelfactory group), now included in the Distribution and Accommodation division. These business activities, considered on an individual basis, do not meet the definition of an operating segment. A chart showing the Group’s consolidated companies, grouped by segment, is given in Note 4.2. The Group recognises the identifiable assets, liabilities and contingent liabilities of acquired entities at fair value on the date of taking of control. Where the agreement governing the business combination provides for a payment that is contingent on future events, the Group includes the amount of this payment in the cost of the business combination at the vesting date, if the payment is probable and can be reliably measured. In the case of acquisitions of companies holding concession agreements, an analysis and fair value measurement of these agreements are performed on the basis of the expected profit margin at the end of the concession agreement. Any variance between the profitability of the concession agreement and the Group average is recognised under (intangible) assets or liabilities (provisions). It is amortised or recovered over the remaining term of the concession. Goodwill is the excess of the cost of an acquisition over the fair value of the Group’s share in the identifiable net assets of the subsidiary or associate on the vesting date. Goodwill arising from the acquisition of a subsidiary is recognised under the item “goodwill”. Goodwill arising from the acquisition of an associate company is recognised under the item “investments in associate companies”. The Group is allowed 12 months from the vesting date to finalise accounting for the business combination in question. Any changes to the acquisition price made outside the allocation period are recognised in profit or loss and no change is made to the acquisition cost or goodwill. Group for its consolidated financial statements. The operating segments identified are as follows: 1.5 BUSINESS COMBINATIONS AND GOODWILL

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Compagnie des Alpes I 2021 Universal registration document