Compagnie des Alpes // 2021 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

the after-tax net operating income on the consolidated net asset amount determined as follows: l after tax net operating income: it is determined after deducting a theoretical tax expense by applying a standard tax rate, l net assets used excluding goodwill include: l non-current assets in net amount after exclusion of goodwill, l the right of use relating to the application of IFRS 16, l working capital requirement, l deferred tax assets net of deferred tax liabilities, l current provisions. The operating ROCE on sites is determined on the basis of the aggregates indicated above for each of the business lines, after the exclusion of goodwill; l net debt: corresponds to gross borrowings net of cash and cash equivalents. INTANGIBLE ASSETS The intangible assets acquired appear on the balance sheet at their amortised cost. When the Group measures brands and trademarks, following analysis, these are considered as having indefinite useful lives. They are thus not amortised and are instead tested for impairment annually (see Note 6.1). Intangible assets and other use rights to assets, the duration of which is directly linked to a concession agreement or lease, are amortised up to the date of expiry of such contracts. This in particular applies to (see Notes 1.14 and 6.2): l use rights: the intangible rights to operate the ski lifts of ADS (Les Arcs/Peisey), SEVABEL (Les Menuires), SCV Domaines Skiables (Serre Chevalier), GMDS (Flaine) and STVI (Val d’Isère); l the concession to use the motorway interchange used to access to Parc Astérix expiring in 2086 (see Note 1.14 below); l the right to use the “Futuroscope” brand expiring in 2050 under the new 30-year lease granted on 12 October 2020. 1.12

In the case of discontinued operations, any net income and contribution to cash flow are presented separately from income and cash flow for continuing operations. CALCULATION OF EARNINGS PER SHARE The basic earnings per share figure is obtained by dividing the net income available for parent-company shareholders by the weighted average number of shares outstanding during the period. The diluted earnings per share figure is obtained by dividing the net income available for shareholders of the parent company by the weighted average number of outstanding shares during the period, adjusted for the impact of all dilutive instruments. 1.10 The operating cash flow, net capital expenditure level, free cash flow, operating ROCE (return on capital employed) and net debt are the principal performance aggregates monitored by the Group. These are determined as follows: l operating cash flow: this measure corresponds to net income: l plus amortisation, depreciation and provisions, capital loss from disposals, dividends paid by the equity affiliates and other expenses without any impact on cash, l less provision reversals, capital gains from disposals, the share in the net income of equity affiliates and other income without any impact on cash; l net capital expenditure: this measure corresponds to the acquisition of property, plant and equipment and intangible assets net of the changes in trade payables on non-current assets and income from their disposal; l free cash flow (1) : it corresponds to the difference between operating cash flow and net capital expenditure; l ROCE (return on capital employed) and operating ROCE on sites: this measure allows measuring of the profitability of the Group’s invested capital and the Group’s principal business lines, namely, Ski areas and Leisure parks. It corresponds to the percentage, for each business line and the total for both business segments, of 1.11 OTHER PERFORMANCE AGGREGATES USED

1.13 PROPERTY, PLANT AND EQUIPMENT Items of property, plant and equipment are recognised on the balance sheet at their amortised cost. Investment subsidies are deducted from the gross amount of the assets giving rise to them. Items of property, plant and equipment that are in use are depreciated on a straight-line basis, broken down by component on the basis of their estimated useful lives as follows:

Durations

Buildings

From 20 to 30 years From 10 to 20 years From 15 to 30 years From 10 to 40 years From 5 to 40 years From 3 to 10 years 40 years

Improvements

Ski lifts

Ski run and trail works

Rides

Equipment (other than ski lifts and rides)

Other fixed assets (including themed sets and characters from Musée Grévin)

The range of depreciable periods is due to the diversity of assets involved. The shortest periods are for more rapidly replaced components ( e.g. scenery for different types of rides), while the longest periods apply to infrastructure.

Residual values and useful lives of assets are reviewed and, if necessary, adjusted at each reporting date.

(1) Changes in the operating working capital requirement are not taken into account.

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Compagnie des Alpes I 2021 Universal registration document