Compagnie des Alpes // 2021 Universal Registration Document

2 RISK FACTORS

Regulatory and compliance risks

2.4.2 PERSONNEL SECURITY RISKS

Due to the nature of its activities, the Group is exposed to the risk of employees being involved in an accident on the Group’s sites, especially when using, operating or carrying out maintenance on ski lifts or attractions and facilities in amusement parks. For the CDA Group, the security and integrity of its employees are priorities (see also section 4.2.3.2). Before the start of each season, forums are organised to welcome new employees and distribute as necessary booklets or welcome guides that set out these priorities. It is also a good opportunity to tell employees about the low season activities and corporate strategy and explain what they can do to increase the “Very High Satisfaction” of customers. Training is dispensed on customer hospitality and safety and also operational procedures, preventive measures (movement and postures, working at heights, using chemical products, etc.), and procedures to follow in the event of an incident.

Employee health and safety at work is the cornerstone of the Compagnie des Alpes labour policy. Each year, we make every effort to improve and to guarantee health and safety at work for our employees. This key issue is decentralised. Each site decides on the most appropriate initiatives for its particular activity. Thus, over the financial year ended 30 September 2021, a total of 20,355 hours of safety at work training was provided. In compliance with the law of 31 December 1991 and the decree of 5 November 2001, professional risk evaluation documents (personnel health and safety) are compiled and updated regularly on French sites. They include risk identification by business segment and job position as well as action plans. Each company is in charge of creating the single document for risk evaluation, and of updating it. This applies to all sectors, all reporting levels, and all employees, regardless of their status.

2.5 Regulatory and compliance risks

2.5.1 RISK OF NON-COMPLIANCE

The risk of non-compliance is monitored by the Group’s Legal Department. Compagnie des Alpes implements a set of procedures to comply with applicable regulations in respect of labour, competition and financial markets law.

The Group’s sales and marketing teams have been made aware of the importance of increased vigilance with regard to the compliance of contracts and pricing policies, and promoting a stronger compliance culture within the Group and its main suppliers.

2.5.2 RISK OF MAJOR LOSS OF PUBLIC SERVICE CONCESSION*

the long term by participating in the development of the real estate offering and optimising the sale of ski passes. The reputation of professionalism and advanced technical skills of the Compagnie des Alpes teams reduces the risk of non-renewal of a PSC. Nevertheless, the Group remains exposed to a risk of termination, loss or non-renewal of public service concessions. As such, the delegating municipalities of the Les 2 Alpes ski area notified the Group on 28 November 2019 of their decision to terminate in advance, for reasons of public interest, the three public service concessions relating to this ski area, as from 1 December 2020. This termination has been effective since that date, and the Group no longer operates the Les 2 Alpes ski area.

Compagnie des Alpes operates its Ski areas, ski slopes and ski lifts under public service concessions (PSCs) granted by regional authorities. The economic model of Compagnie des Alpes’ Ski area activities is thus based on integration in the mountain ecosystems, involving cooperation with all stakeholders in order to develop and further improve the current offering and the quality of the activities available. The renewal of each of the PSCs involves the identification of capital expenditure requirements and the analysis of their relevance, as well as the definition of the regulatory, local and environmental frameworks, in close collaboration with the sites and Group departments concerned. An approval Committee validates the response dossiers before sending them to the authorities. The goal is also to secure operations over

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Compagnie des Alpes I 2021 Universal registration document