Compagnie des Alpes // 2021 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

We considered the valuation of these assets to be a key audit matter due to: l on the one hand, the Covid-19 health crisis which has had a significant impact on the Group’s activities; l secondly, the determination of their recoverable amount, based on discounted future cash flow forecasts that require the use of assumptions, estimates and/or assessments; l and, finally, the high sensitivity of these assumptions, estimates and assessments on the results of the impairment tests carried out, particularly in the very specific context of the Covid-19 pandemic. Our solution We have examined the procedures for implementing the impairment tests performed by the Group. These are based in particular on medium- term business plans prepared for each site, reviewed and approved by the Group’s governance. We have assessed: l the quality of the process for preparing and approving the 2021/2022 budget and, more broadly, the medium-term plan for 2022/2026 drawn up by the Group’s Executive Management and approved by the Board of Directors; l the reasonableness of the main estimates used and assessments made, both for the leisure parks and the ski areas: cash flow forecasts (in particular for the year 2021/2022), return to normal during the term of the plan, long-term growth rates, and discount rates used; l for other assets, the reasonableness of the estimates used. We also assessed the consistency of the forecasts and the central scenario used by management and conducted out our own sensitivity analyses on the impairment tests. These analyses were carried out with the assistance of our valuation experts and have been shared with the Group’s Executive Management. We have also assessed the appropriate character of the information presented for the asset impairment tests and checked the quantified information provided in Note 6.1 to the consolidated financial statements and relating to the sensitivity tests. Recognition of revenue Risk identified: The Group’s revenue mainly derives from tickets for entry to leisure parks and museums and sales of passes in ski resorts. The resulting income is recognised from ticketing computer systems which may vary depending on the sites. Although the Group relies on several internal control systems (distribution of internal control guides, campaigns for site self-assessment, etc.) to ensure the accuracy and comprehensiveness of the revenue, we nevertheless considered that the recognition of ticket sales is a key point in the audit, due to the volume of individual transactions, the large number of sites concerned and the presence of different ticketing systems. Our solution: In the context of our audit, while adapting the level of checks according to the estimated level of risk for each site, particularly when new ticketing software is developed, our work includes: l a critical review of the internal-control systems for checking the effectiveness of the procedures put in place to calculate the revenue; l a critical review of the control environment for the IT systems used, with the help of our IT experts; l detailed analytical reviews in order to corroborate the quantified data with seasonal and customer-attendance trends and to ensure that price changes are taken into account; l reconciliation between data from the ticketing systems, incoming payments and data recognised in the accounts. The periods of closure imposed by the health crisis were partly compensated by the implementation of various government aid schemes, the main impacts of which are described in the “Aid schemes” section of the “Highlights of the year” note in the notes to the consolidated financial statements, with in particular: l the partial compensation of fixed costs for ski lift operators, which had a net impact of €168.3 million on the Group’s operating income; l the partial compensation of fixed costs benefiting French leisure parks and tour operators, as well as the solidarity fund, for a total amount of €10.6 million; l the partial unemployment scheme, exemptions and aid for the payment of social security contributions for a total amount of €22 million. We considered that the accounting translation of these aid schemes is a key audit matter, given the conditions for the granting of this aid which may have changed over time, their calculation methods and their particularly significant impacts on income for the period. Recognition of government aid and subsidies Risk identified:

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Compagnie des Alpes I 2021 Universal registration document