Compagnie des Alpes // 2021 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

5.5

COST OF DEBT, OTHER FINANCIAL INCOME AND EXPENSES

30/09/2021

30/09/2020

(in thousands of euros)

Interest expense on borrowings Interest expenses on lease liabilities

-16,594

-9,934 -2,618

-3,733

NET COST OF DEBT

-20,327

-12,552

-1,194

-1,405

Losses on financial transactions (1)

Other financial income Foreign exchange income

-389

-377 -537 1,132

484

-3,788 -3,274

Impact on profit or loss of securities valued at FVR (2)

Impairment of financial receivables

-4,600

Dividends received

99

226

OTHER FINANCIAL INCOME AND EXPENSES

-8,063

-5,561

(1) Share of losses of non-consolidated companies (tax transparency). (2) Including provisions for losses of subsidiaries.

Interest on borrowings takes into account an expense of €4.3 million relating to the extension of the first SGL until 2026.

5.6 INCOME TAX EXPENSE Income tax expense breaks down as follows:

30/09/2021

30/09/2020

(in thousands of euros)

Current taxes Deferred taxes

1,619

-3,528 16,360 12,832

18,652 20,270

TOTAL

Current taxes: the Group benefited from the exceptional carry back scheme applicable to tax losses recorded at 30 September 2020 and recognised a tax receivable of €3.4 million in this respect at 30 September 2021.

The reconciliation between the standard tax rate in France and the effective tax rate is outlined below (the effective tax rate is the ratio of income tax to net income of consolidated companies, including income from discontinued operations included in the tax consolidation, but before tax and adjustments for goodwill impairment losses).

The reconciliation between income tax and the pre-tax income of consolidated companies is shown below:

30/09/2021

30/09/2020

NET INCOME BEFORE TAX

-143,728 28.00% -40,244

-123,246 31.00% -38,206

Current tax rate

Theoretical tax expense

Effects of: Difference between actual tax rate and theoretical rate Non-deductible expenses/non-taxable income

3,980 16,172 3,970

5,111

15,572 5,442

Tax loss carryforwards

Activation of previous tax losses carried forward Income from associate companies recognised net of tax

-846

-

-2,537

-225 -525

Other

-765

TOTAL INCOME TAX EXPENSE

-20,270

-12,832

Tax loss carryforwards for which no deferred tax was recognised, stood at €53.1 million at 30 September 2021 (of which €29.8 million relate to foreign subsidiaries), and equate to a deferred tax asset of €13.7 million.

5.7

SHARE OF NET INCOME OF ASSOCIATE COMPANIES

Companies (in millions of euros)

Share of income of associated companies

Country

Revenue

Income

EBITDA Impairment

30/09/2020 Groupe Cie du Mont-Blanc

France France France France

86.8 35.6 11.9 10.8

10.0

27.6 15.3

- -

3.8 1.1

SERMA (Avoriaz) DSV (Valmorel) DSR (La Rosière)

5.7 0.1 1.0

2.9 3.8

-4.4

-4.4

-

0.2 0.7

TOTAL

30/09/2021 Groupe Cie du Mont-Blanc

France France France France

27.7 19.8

24.6

23.4

- - - -

9.2 0.3

SERMA (Avoriaz) DSV (Valmorel) DSR (La Rosière)

1.5

9.5 0.9 2.4

6.1 5.6

-2.2 -0.0

-0.4

0.0 9.1

TOTAL

168

Compagnie des Alpes I 2021 Universal registration document