Compagnies des Alpes // 2019 Universal Registration Document

5 FINANCIAL INFORMATION

Analysis of consolidated results and sectors

5.1.1.4 Capital expenditure Investment levels are one of the main performance measures monitored by the Group, alongside revenue and EBITDA. Capital expenditure (net of disposals) amounted to €209.4 million (€208.5 million on a comparable scope) compared with €186.2 million the previous year. It represents 25% of the Group’s revenue in 2018/2019 (compared with 23.2% in 2017/2018). Investments break down by business lines as follows:

FY 2018/2019 Comparable scope (2)

% of revenue 2018/2019 Comparable scope

% of revenue 2017/2018 Comparable scope

Change % Comparable scope (2) - (3) / (3)

FY 2018/2019 Actual scope (1)

FY 2017/2018 Actual scope (3)

FY 2017/2018 Actual scope (4)

Change % Actual scope (1) - (4) / (4)

(in millions of euros)

Ski areas

101.6 102.8

101.6 102.1

22.9% 28.1%

91.0 91.3

21.2% 26.8%

11.7% 11.9% 18.8%

91.0 91.3

11.7% 12.7% 24.5%

Leisure parks

Holdings and supports

4.9

4.7

3.9

3.9

NET CAPITAL EXPENDITURE

209.4

208.5

25.0%

186.2

23.2%

12.0%

186.2

12.4%

Investments in the Ski areas segment amounted to €101.6 million, compared with €91 million the previous year (22.9% and 21.2% of segment revenue respectively). These mainly related to ski lifts, snow- making equipment and work to secure water resources, grooming machines and ski run and trail work (see Notes 6.2 and 6.3 to the Consolidated Financial Statements). In close collaboration with the granting authorities, the Group is focusing its e f forts on investments that will generate additional revenues, increase the attractiveness of the areas operated and improve the quality of the product o ff ered to customers, and optimise operating expenses. In the Leisure parks segment, investments came to €102.1 million on a comparable scope, compared with €91.3 million in the previous year, i.e. 28.1% of the revenue versus 26.8% in 2017/2018. As was the case the previous year, considerable attention was devoted to amusement parks this year; these investments concern: l the continued creation of a new indoor water park near the Bellewaerde park, which opened to the public in early July 2019;

l the completion of the construction of a new hotel at Parc Astérix, the Cité Suspendue, and the launch of work on another hotel, Les Quais de Lutèce, planned for 2020; l ongoing investments in increasing the appeal of both the new attractions of the 2019 season ( Attention Menhir in Parc Astérix, “Mystic” in Walibi Rhône-Alpes, “Untamed” in Walibi Holland and kids zone of Futuropolis in Futuroscope) and the attractions planned for the next season. In the Holdings and supports segment, investments mainly represent intangible assets intended for site operations (computer software for ticketing and expenses relating to the implementation of the Group’s digital strategy – datalake, CRM and sales tunnels). At Travelfactory, they mainly relate to digital investments (website).

5.1.1.5 Operating Income Net operating income amounted to €105.1 million in 2018/2019, up by 8.4% on an actual scope basis and 5.2% on a comparable scope:

FY 2018/2019 Comparable scope (2)

% of revenue 2018/2019 Comparable scope

% of revenue 2017/2018 Comparable scope

Change % Comparable scope (2) - (3) / (3)

FY 2018/2019 Actual scope (1)

FY 2017/2018 Actual scope (3)

FY 2017/2018 Actual scope (4)

Change % Actual scope (1) - (4) / (4)

(in millions of euros)

EBITDA

232.3

227.7

51.3%

218.3

50.9%

4.3%

218.3

6.4%

Amortisation, depreciation and provisions

-127.1

-125.3

-34.4%

-121.3

-35.7%

3.3%

-121.3

4.9%

Other operating income and expenses

0.0

0.0

-0.2%

-0.1

-0.3% -52.2%

-0.1

-52.2%

NET OPERATING INCOME

105.1

102.1

12.2%

97.0

12.1%

5.2%

97.0

8.4%

Expenses linked to the amortisation and depreciation of non-current assets increased by €4 million on a comparable scope, as a result of the ambitious investment policy implemented over the last fi ve years. In addition, they included an impairment charge of €3 million on two sites abroad and accelerated depreciation of property, plant and equipment to re fl ect their fair value.

The cost of net debt remained stable compared to the previous year at -€8.3 million, despite an increase of €104 million in outstanding debt. This stability is explained by: l the implementation of a NEU CP programme in February 2019 (average drawdown outstanding of €79.8 million at an average rate of -0.06%); l a lower average bond debt rate due to the repayment of the €200 million loan in October 2017 and the establishment of a USPP loan of €65 million at a rate of 2.14%.

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Compagnie des Alpes I 2019 Universal registration document