Compagnie des Alpes // 2021 Universal Registration Document

NET CAPITAL EXPENDITURE (in millions of euros)

209

In order to protect its liquidity position, Compagnie des Alpes has adjusted its investments over the past two financial years. It should be noted that in 2020/2021, the Group received €51 million in proceeds from the sale of the Les Deux Alpes assets, with net capital expenditure amounting to €92 million.In line with the Group’s desire to resume its investment strategy, total investments should average approximately €210 million per year between 2021/2022 and 2024/2025, of which a budget of approximately €160 million in 2021/2022.

186

175

160

154

143

135

125

13/14

14/15

15/16

16/17

17/18

18/19

19/20

20/21

FREE CASH FLOW (1) (in millions of euros)

18/19

19/20

20/21

In addition to controlling its investments, the Group has maintained its efforts to reduce its structural and operating costs throughout the crisis. In 2020/2021, these reductions in operating expenses enabled it to offset 41% of the shortfall in its revenue compared to the 2018/2019 financial year. In addition, the Group received a total of €189 million in grants and compensation in 2020/2021, including €168 million net of the partial offset of fixed costs for ski lift operators in France.

-10

-15

-74

Post-IFRS 16 net financial debt Lease liabilities IFRS 16 Net debt ex-IFRS 16

NET FINANCIAL DEBT (in millions of euros)

825

177

Thanks to the capital increase carried out in June 2021, the Group’s net debt excluding IRFS 16 decreased by €146 million in 2020/2021 to reach €502 million at 30 September 2021. After taking into account borrowing for lease commitments of €162 million, the Group’s post-IFRS net debt amounted to €664 million, compared with €825 million at 30 September 2020, i.e. a decrease of €161 million. The Group aims to reach financial debt leverage (Net debt ex-IFRS 16/ EBITDA excluding IFRS 16) of between 3.0x and 3.5x by the end of September 2022, subsequently falling to below 2.5x from the end of September 2023.

644 162

540

648

502

30/09/2019

30/09/2020

30/09/2021

LIQUIDITY POSITION (at 30/09/2021)

Over the financial year under review, the Group secured its liquidity position to deal with the health crisis. In addition to the cost-saving measures and adjustments to its investment plans, the Group benefited from financial assistance and offsets for its fixed costs (€189 million), took out a "Saison" PGE (State-Guaranteed Loan) of €269 million in December 2020, received the proceeds from the sale of Les Deux Alpes assets (€51 million), and in April 2021 extended its first PGE loan (€200 million), the repayment of which will be staggered between 2023 and 2026. It then received the net proceeds of the capital increase carried out in June 2021 (€227 million) before experiencing a strong recovery in activity during the fourth quarter. As a result, the Group closed out the financial year with a liquidity position of €696 million. This position is made up of available cash(€350 million), available credit lines (€214 million) and undrawn overdraft facilities (€132 million).

€ 696 million

62

19/20

20/21

NET INCOME GROUP SHARE (in millions of euros)

18/19

Taking into account the impact of the health crisis and the goodwill impairment for the Leisure parks in the amount of €55 million, net income Group share for the 2020/2021 financial year stood at -€122 million, despite the recognition of current and deferred tax income of €20 million. This compares with net income Group share of -€104 million in 2019/2020, which also included goodwill impairment for the Leisure parks and Travelfactory totalling €49 million.

-104

-122

DIVIDEND

Because of the health crisis and its impacts on business activity, the Board of Directors will recommend at the upcoming Shareholders’ Meeting, scheduled for 10 March 2022, that no dividend be paid out in respect of the 2020/2021 financial year. The Group nevertheless aims to return to a distribution rate that is at least equivalent to the pre-crisis level as of 2022/2023 (in respect of the 2021/2022 financial year), an objective that the Group deems perfectly compatible with its growth and investment strategy.

(1) Pre-IFRS 16 free cash flow in 2018/2019, post-IFRS 16 from 2019/2020.

17

Compagnie des Alpes I 2021 Universal registration document