Compagnie des Alpes // 2021 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

Our solution: As part of our audit, we carried out the following work: l we examined the criteria for the eligibility and allocation of this aid, on the one hand at the level of each subsidiary and on the other hand at Group level, in particular with regard to certain capping mechanisms; l we assessed the reasonableness of the main estimates made regarding the amounts supporting the applications for aid and the calculations thereof; l we verified the proper accounting treatment of the various aid schemes from which the Group benefited; l and lastly, we assessed the appropriateness of the information presented in the “Aid schemes” section of the note “Highlights of the year” to the consolidated financial statements. Accounting treatment of the concessions for ski areas Risk identified: The operation of the ski areas by Compagnie des Alpes lies within a complex legal framework: l the specifics of the mechanical-ski-lifts public service are recognised at the legislative and regulatory level via the Mountain Act of 9 January 1985, the major provisions of which were incorporated in the French Tourism Code; l public service concessions (PSC) signed between the subsidiaries of Compagnie des Alpes and the local authorities set the main economic parameters for the equilibrium of the PSC relative essentially to investments, fees paid, changes to prices and the devolution of assets at the end of the concession. We considered that the accounting translation of the elements in the life of these contracts is a key point of the audit, because recording transactions directly related to these contracts is complex: l each subsidiary signs a specific contract with the local authority upon which the ski area is dependent; l the accounting treatment of assets is specific to each of the concessions; l the determination of the recovery value of assets at the end of the concession may, according to the contracts, require the use of judgements and estimates by the management; l the management’s assumption that the concessions will be renewed made by the management when carrying out its impairment tests must take into account the latest discussions with the local authorities. Our solution: We have taken note of the legal commitments and transactions related to the implementation of these contracts. We have checked the correct accounting translation of these transactions, particularly with regard to the treatment of the concession assets and the investment commitments. Where applicable, we have corroborated our analyses through interviews with the Financial Department and Legal Department, notably to understand the judgements and estimates adopted. We took note of the negotiations in progress, in order to verify the reasonableness of the assumptions used by the Management and their consequences in terms of accounting treatment, in particular in the determination of the business plans used to perform the impairment tests. We verified the correct accounting treatment of the effects of the termination of the PSC contracts in Les 2 Alpes ski area, in particular as part of the memorandum of understanding signed with the buyer of the PSC, and assessed the reasonableness of the assumptions made by Management in the context of the dispute initiated with the municipalities concerning the termination compensation. We also assessed the appropriateness of the information mentioned in the notes to the consolidated financial statements, in particular in Note 1.14 relating to concessions and in the section “Public service agreements relating to the Les 2 Alpes ski area” under “Highlights of the year”. Specific checks We also carried out, in accordance with the standards of professional practice applicable in France, the specific checks required by the law and regulations on disclosures relating to the Group, given in the Board of Directors’ management report. We have no comment to make regarding their fairness and consistency with the consolidated financial statements. We certify that the consolidated Statement of Non-Financial Performance specified by Article L. 225-102-1 of the French Commercial Code is present in the management report, with the understanding that, in compliance with the provisions of Article L. 823-10 of this Code, we have not checked the faithfulness or consistency of the information contained in this statement with the consolidated financial statements, which must be performed by an independent third-party body. In accordance with the law, we inform you that the consolidated Statement of Non-Financial Performance does not include the share of eligible investments and the share of eligible operating expenses, information required by Article 8, section 2 of regulation (EU) 2020/852.

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Compagnie des Alpes I 2021 Universal registration document