Compagnie des Alpes // 2021 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

1.14 CONCESSIONS Compagnie des Alpes is a major player in the leisure sector in Europe, particularly in the operation of ski areas. The operation of ski areas in France is governed by the legal framework established in the French Mountain Act ( Loi Montagne ) of 9 January 1985, concerning the development and protection of mountainous regions. These ski areas are for the most part subject to concession agreements between CDA subsidiaries and local municipalities. The operator has an agreement with a regional authority (usually a municipality, sometimes the Department) or a group of municipalities. These agreements govern the relations between the granting authority and the operator with regard to all operating aspects of a ski area (capital expenditure, commercial and pricing policies, legal risks, etc.). On this basis, the operator is responsible for making the capital expenditure over the life of the concession required to keep the facilities in good operating condition and implement its commercial and pricing policy. In return, the operator is authorised to collect from users, on the basis of a public rate grid, income from the sale of ski lift passes. Certain CDA group companies (STGM, ADS, SAP, SCV and GMDS) continue to pay leasing contract fees for ski lifts provided by the concession granting authorities at the beginning of the concession. However, this system is gradually being replaced by concession agreements due to investments made by the operator. In fact, the operators replace, at their own expense, obsolete equipment held under leasing contracts, with the new equipment coming under concession agreements. The CDA Group has analysed the characteristics of its contracts and the nature of the leisure services provided and concluded that these contracts do not fall within the scope of IFRIC 12 on service concession agreements. Accordingly, the CDA group recognises assets associated with ski lift concessions as a separate item under “Property, plant, and equipment”. They are broken down and amortised in accordance with the same rules applied to property, plant and equipment owned by the Group itself. Assets classified as held in concession are: l assets supplied by the granting authority which are to be returned at the end of the concession; l assets supplied by the operator which are to be placed at the granting authority’s disposal at the end of the concession (typically in exchange for payment to the operator). Free contributions from the concession granting authority and assets under leasing contracts are not recognised in the Group’s statement of financial position. A provision is made under liabilities (provisions for major repairs) for periodic maintenance work. The Company’s other assets, which are not connected with the concession and which don’t meet these criteria, are classified as directly-owned assets. Conditions governing return to granting authorities When concession agreements expire, it is generally expected that the concession assets acquired by the operator will be recovered by the granting authority in return for a payment. This payment is based on various calculation methods set out in the contracts. It is at least equal to their net book value. Main concession agreements Concessions granted by municipalities, municipalities groups and associations The main concession agreements of consolidated Group companies are as follows: l Société des Téléphériques de la Grande Motte (STGM) - Tignes: Concession granted by the municipality of Tignes initially for the period from 5 September 1988 to 30 September 2016 (28 years) and extended in 1998/1999 for an additional ten years to 31 May 2026.

l Société d’Aménagement de la Station de La Plagne (SAP) - La Plagne: Concession granted by the Syndicat Intercommunal de la Grande Plagne (SIGP, grouping of several municipalities) initially for the period from 15 December 1987 to 10 June 2017 (30 years) and extended in 1998/1999 for an additional 10 years to 10 June 2027. l ADS – Les Arcs-Peisey-Vallandry: Concession granted by the municipality of Bourg-Saint-Maurice for the period from 1 June 1990 to 31 May 2020 (30 years) and extended for 10 years in January 2015 until 31 May 2030. Concession granted by the municipality of Villaroger for the period from 1 June 2020 to 31 May 2050 (30 years). Concession granted by the inter-communal union (SIVOM) of Landry- Peisey-Nancroix for the period from 1 June 2020 to 31 May 2050 (30 years). l Société d'Exploitation de la Vallée des Belleville (Sevabel) - Les Menuires: Concession for the operation of the Saint-Martin-de-Belleville ski area, granted by the municipality of Les Belleville initially for the period from 1 December 1990 to 31 May 2017 (27 years) and extended on May 2001 for four years to 31 May 2021, then on 29 March 2016 for ten years to 31 May 2031. Concession for the operation of the Menuires ski area granted by the Syndicat Mixte pour l’Aménagement de Belleville (SYMAB, grouping of several municipalities) initially for the period from 1 December 1990 to 31 May 2017 (27 years) and extended on 11 August 2000 for four years up to 31 May 2021, then on 29 March 2016 for 10 years up to 31 May 2031. l Méribel Alpina: Concessions granted respectively by the municipality of Les Allues for the period from 18 December 1989 to 17 December 2019 (30 years), extended until 31 May 2034. Concession granted by the municipality of Brides-les-Bains for the period from 30 June 1992 to 17 December 2019 (27 years), which was extended on 17 June 2019 for an additional period of 15 years. It should be noted that this extension is the subject of proceedings before the Administrative Court of Grenoble. In the event of the early termination of the amendment, Méribel Alpina would apply as part of a new tender process, the operation of this concession being directly linked to that of the municipality of Les Allues. l Grand Massif Domaines Skiables (GMDS): Concession granted by the department of Haute-Savoie, amended by an additional clause, for the period from 9 January 1989 to 8 January 2019 (30 years), subsequently renegotiated for five years up to 2024. Concession for the operation of new ski lifts and ski runs granted by the municipality of Magland for the period from 4 July 2000 to 30 April 2025 (25 years). Concession for the operation of new ski lifts and ski runs granted by the municipality of Arâches-la-Frasse in the part of its territory falling within the Flaine ski area for the period from 9 July 2004 to 30 April 2029 (25 years). Concession for the operation of new ski lifts and ski runs granted by the municipality of Morillon for the period from 8 July 2016 to 31 May 2047 (31 years). Concession for the operation of new ski lifts and ski runs granted by the municipality of Samoëns for the period from 1 September 2000 to 30 April 2030 (30 years). Concession concluded for the period of 1 December 2013 to 30 September 2053 or 30 September 2025 depending on the completion of the Sixt-Flaine project with the municipality of Sixt Fer à Cheval for a period of 40 or 13 years.

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Compagnie des Alpes I 2021 Universal registration document