Compagnie des Alpes // 2021 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

Procedures for determining the recoverable amount The recoverable amount of groups of CGUs, as defined above, corresponds to the sum of the values in use of the CGUs comprising the groups of CGUs, which is determined by discounting projections of future cash flows from operating of the sites based on the medium- term plans (five years) approved by the Group’s Executive Management and presented to the Strategy Committee and to the Board of Directors, and using a terminal value based on the forecast future standardised cash flows to perpetuity generated by the asset under consideration. Support costs considered as reasonably allocable are taken into account in operating segments. For the impairment tests at 30 September 2021, the Group has chosen to apply the practical relief in which the value to be tested includes the right-of-use deducted from the lease liabilities. Projections from the business plans, the terminal value and the discount rate are determined in line with the situation prior to the application of IFRS 16. The projections resulting from the business plans, the terminal value and the discount rate do not take into account the application of IFRS 16. For the CGUs operated under concession agreements (Ski areas) or leases (Leisure parks), the CDA Group manages these contracts on a going concern basis (both in terms of site management and in terms of capital expenditure to maintain/increase its business). The Group measures the recoverable amount of the groups of CGUs on the assumption that its concession-holding activities will continue beyond the end of the concession, in light of the extensions already obtained in the past. The daily management and investment policy are therefore implemented with a view to maintaining or increasing the appeal of the leisure park or ski area concerned. FINANCIAL ASSETS Pursuant to IFRS 9, the non-current financial assets are broken down into three categories: l financial assets measured at amortised cost: These are financial assets whose economic model aims to receive contractual flows, and the contractual conditions of which provide for specified dates of flows corresponding only to repayments of capital and interest. They represent the loans and receivables linked to the shareholdings and the deposits and guarantees; l financial assets measured at fair value, recognised under other comprehensive income, non-recyclable under income: these represent securities of non-controlled companies; l financial assets measured at fair value through income: these mainly represent securities of non-consolidated controlled companies. This primarily concerns shareholdings of Ski areas in real estate agencies and lease or building ownership companies, which are not significant with regard to the consolidated financial statements (see Notes 6.7 and 6.8). Fair value is determined according to the methodology defined by IFRS 13, based on the three levels of fair value defined in Note 6.15. For listed securities, it corresponds to a market price. For unlisted securities, it is determined primarily by reference to recent transactions or by valuation techniques that incorporate reliable and observable market data. However, in the absence of observable market data on comparable companies, the fair value of unlisted securities is most often assessed on the basis of discounted cash flow projections or the revalued net book value, determined from internal parameters (level 3 of the fair value hierarchy). 1.16

l Licensing agreement with Editions Albert-René (publisher of the Astérix comic books): In 1986, a licensing agreement was concluded with Editions Albert- René for the legal duration of the copyright, which is 70 years after the death of the last surviving author. This agreement guarantees Grévin & Cie the right to use the comic strip characters and world in its theme parks, in France and abroad. An amendment signed in March 1996 set the licensing fee at 3% of sales excluding VAT of Parc Astérix, with a minimum fee of €1.7 million. IMPAIRMENT OF ASSETS Definition of cash-generating units and allocation of assets An asset’s recoverable amount is the higher of its fair value less selling costs and its value in use. The recoverable amount of property, plant and equipment and intangible assets is tested when events, market developments or internal factors indicate a risk of a permanent loss of value. It is tested at least once a year, at the reporting date, for assets with an indefinite useful life (category limited to goodwill, brands and trademarks). As goodwill and the main items of property, plant and equipment and intangible assets relate to operation of the sites, these are allocated to groups of cash-generating units, which equate to the sites on which the Group’s strategic development is focused. An impairment loss is recognised if the recoverable amount of the asset or group of assets tested is lower than its book value. Goodwill impairment losses are irreversible. Impairment losses for other items of property, plant and equipment and intangible assets may be reversed if the recoverable amount of the asset increases. Impairment of goodwill is presented in the line “Other operating income and expenses” in the income statement. Allocation of goodwill and operating assets to cash-generating units (CGUs) The Group’s CGUs comprise the sites it operates. For impairment testing purposes, goodwill is allocated at the level of the groups of CGUs, which constitute homogeneous entities generating cash flows that are largely independent of the cash flows generated by the other CGUs. The CGUs that the Group intends to continue to operate and hold have been reorganised as follows: l Ski areas portfolio: grouping together all the ski areas whose arbitration regarding operation and investments is pooled in a single decision-making body; l Leisure parks portfolio: grouping together all the Leisure parks and Musées Grévin in France and abroad, whose arbitration regarding operation and investments is pooled in a single decision-making body; l the other Group companies are grouped under the heading Holdings and supports (consulting, tour operator activities, real estate agencies and holding companies). Indeed, the size of these activities does not justify the creation of a dedicated sector, whether for the Travelfactory sub-group (tour operator) or other companies with a real estate or agency activity. 1.15

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Compagnie des Alpes I 2021 Universal registration document