Compagnies des Alpes // 2019 Universal Registration Document

4 STATEMENT OF NON FINANCIAL PERFORMANCE Societal challenges

In total, since 2014, the Group has operated 5,761 hot beds (6,200 since 1998), half of which have been upgraded, and the other half are new beds. 4.4.1.4 Adapting to the consequences of climate change Changes in demand for a leisure activity, which is by nature non- essential, are di ffi cult to predict in a low-carbon world with the new constraints this involves. The Group is therefore faced with the fact that a leisure activity with a high environmental footprint may become less attractive in the medium term and is working to fi rst reduce the negative external factors of its activities and then to embark on the long-term project of adapting and planning ahead for the leisure activities of the future. Ski area operations The e ff ects of climate change have already been felt, particularly in the Ski areas with a shorter glacier skiing season (summer, autumn), a tendency for a shorter period of natural snowfall in recent seasons, and uncertainty about the duration of temperature windows for the production of arti fi cial snow. To this we will likely have to add an increase in extreme events and the impact of the melting of the permafrost which will require additional maintenance of the infrastructures a ff ected. Despite di ffi cult starts to the seasons, Compagnie des Alpes Ski areas remain resilient for the time being due to the fact their resorts are at high altitude or provide access to high altitude ski areas. An alternative solution may be to use the fi rst section of the ski lifts as a lift, thereby o ff ering to access the ski area even when conditions are di ffi cult on the low-altitude slopes. The generation of operating conditions, and the associated fl ows, is the fi rst adaptation. Ski areas are also using technology to adapt and guarantee the start and end of the season by producing arti fi cial snow, with around 40% of the slope areas equipped according to snow level priorities. Production networks have therefore adapted to the capacity required and the water storage facilities with around 10% of total investment being made in this area. In addition, optimisation work and equipment renewal are providing higher yields while limiting the rise in operating costs and the consumption of resources (energy primarily). Grooming techniques are also evolving in order to optimise snow quality and increase its useful life. Grooming takes a range of parameters into account: weather forecasts, a precise calculation of snow volumes considered necessary, satellite or radar measurements of snow thickness. The orientation of the slopes is also examined, and work on the ski runs and re-establishment of vegetation allow the resort to reduce the quantities of snow required to create suitable skiing conditions. In addition to these technological solutions, the Ski areas are working on a summer activity relaunch by developing their 2 or 4 season fun non-ski activities (mountain biking, green tourism, glacial walking, alpine coaster, mountain go-kart circuit, downhill scooters, marinas) and packages with partner resorts (thermal baths, water and racket sports, etc.). They are also improving their circuits and access to viewpoints (Altitude Expérience in Tignes, Aiguille Rouge footbridge in Les Arcs, etc.) to make them accessible to all. An initial study is underway to assess the transition risks (based on scenarios) and material risks (based on a review of scienti fi c literature on the subject) of the energy and ecological transition which are applicable to the Group sites. The main long-term material risks could be linked to a reduction of the operating period at the height of the season due to the rise in average winter temperatures, based on the trajectories of the di ff erent

Moreover, the Group companies contribute to the building and maintenance of resort access roads, primarily through their funding of the Tarentaise road system and RN 90, and also support municipal infrastructures by financing the local and regional shuttles and accommodation. 4.4.1.3 The real estate-accommodation policy at the resorts The Group believes it is duty-bound to consider the future of the resorts and takes a leading role in tackling issues which extend beyond the simple management of its ski lifts. This had led it to turn its attention to accommodation. Foncière Rénovation Montagne The implementation of the project involving the creation of Foncière Rénovation Montagne is a noteworthy illustration of Compagnie des Alpes involvement in partnerships that have a strong regional impact, with local stakeholders. The aim of Foncière Rénovation Montagne is to invest in local real estate with a view to acquiring ageing properties to renovate. By renewing the appeal of these properties, it helps to combat the “cold beds” problem in mountain regions. The “cold beds” phenomenon relates to accommodation that is rarely occupied by its owner and rarely o ff ered for rent or, when it does come on the rental market, nobody wants to rent it: in other words, empty apartments. The resulting imbalance is harmful to the economy of the resorts and the poorly-maintained accommodation can sometimes reduce the appeal of an entire area. Thus, these “cold beds” block constructed but non- productive real estate at a time when real estate resources are in short supply, particularly in the mountains. Through the Foncière Rénovation Montagne initiative, Compagnie des Alpes is trying to create a knock-on e ff ect which encourages local authorities and owners to put their renovated properties back into the sales circuit. Since the start of the initiative, 478 properties have been purchased and renovated (for a total cost of €11 million). The real estate-accommodation policy The Group has a strategy to maximise occupation of the available beds at the resort, to support tourism and the local economy: l the network of the Compagnie des Alpes Group’s real estate agencies (28 o ffi ces) manages around 2,950 lots, or 13,500 beds. The target is to achieve an above-average apartment occupancy rate (on average a few percentage points higher than the resort agency average) to attract skiers, and also money, to the resort; l the Group’s real estate agencies o ff er lodge owners assistance with any renovations and upgrades required to help them obtain quality labels, thus equipping them to combat the “cold beds” phenomenon; l CDA has invested in the preservation and refurbishment of existing accommodation. For example SAP has completely refurbished the Baccara building (460 beds) in Les Coches to bring them in line with modern tastes and standards. Similarly our teams have renovated and brought back into service a time-share building (300 beds) which would have been sold o ff individually at Les Ménuires; l the CDA group also supports new projects by participating fi nancially in building ownership or in management structures, or in the sale of land, or in undertakings to purchase.

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Compagnie des Alpes I 2019 Universal registration document