Compagnies des Alpes // 2019 Universal Registration Document

5 FINANCIAL INFORMATION

Analysis of consolidated results and sectors

The nominal tax rate stood at 31.1% versus 32% the previous year. It includes the absence of deferred tax income recognised on losses from subsidiaries abroad or in France, the recoverability whereof is not guaranteed (amounting to €1.4 million). The share of net income of associate companies increased by €4.4 million, to reach €8.9 million, mainly due to higher income for Compagnie du Mont-Blanc, which is linked to various indemnities for past claims. Income from discontinued operations amounted to +€3.7 million the previous year and was related to the sale of Grévin Prague and Seoul. Net income (Group share) for the fi scal year amounted to €62.2 million versus €57.2 million the previous year, i.e. an 8.8% increase compared to the year before which itself was a record.

The average interest rate declined from 2.24% in 2018 to 1.72% in 2019. Other fi nancial income and expenses are impacted by losses incurred on unconsolidated subsidiaries involved in the land, real estate or catering business. The discontinuation of the unpro fi table catering business, sold in 2018/2019, made it possible to reduce the losses incurred by approximately €2 million compared to the previous fi scal year. The income tax expense increased by €2.5 million compared to the previous year. It includes: l deferred tax income of €2.5 million stemming from the recognition of Parc du Futuroscope carryover losses, whereas in 2017/2018, a deferred tax loss of €1.2 million had been recognised; l deferred tax income of €0.3 million on the fall in the tax rate in France.

5.1.2 CASH, FINANCING AND CAPITAL

5.1.2.1 Cash and cash equivalents

30/09/2019

30/09/2018

(in millions of euros)

Operating cash fl ows from continuing operations after borrowing cost and tax

196.3

180.0 -188.5

Net capital expenditure (CAPEX, net of disposals)

-208.1

Change in receivables and payables on non-current assets

-1.3

2.3

FREE CASH FLOW

-13.0 -77.5 162.1 -20.5

-6.1 -8.1

Acquisition/Disposal of non-current fi nancial assets

Change in borrowings

-73.2 -16.8

Dividends (including non-controlling interests in subsidiaries)

Change in WCR and other

-7.7 0.0

-2.4

Impact of discontinued operations CHANGE IN CASH POSITION

3.3

43.4

-103.2

5.1.2.2 Structure of debt The Group’s (gross) fi nancial debt (€562.8 million) comprises 71.7% of fi xed-rate loans and 28.3% of variable-rate loans (see Note 6.12 to the Consolidated Financial Statements). As part of the Familypark buyback, Compagnie des Alpes raised a loan of €65 million on the USPP market on 20 March 2019, with an average period of 10 years and fi nal maturity at 12 years, at a rate of 3.504%. The Group also implemented a short-term marketable securities issuance programme (Negotiable European Commercial Paper – NEU CP) with Banque de France, for a maximum amount of €240 million, the outstanding amount of which came to €134 million on 30 September. 5.1.2.3 Exposure to banking covenants The covenant that the Group must conform to is the following: Net debt/EBITDA ratio should remain less than or equal to 3.5x. Given the improvement in the Group’s performance as a whole, it stood at 2.33 compared with 1.84 the previous year on a restated basis. For information, the debt/equity ratio stood at 0.58 versus 0.46 the previous year.

Operating cash fl ow amounted to €196.3 million ( i.e. 22.4% of revenue), an increase of 9% compared to 30 September 2018, re fl ecting the signi fi cant improvement in the Group’s business performance and bene fi ting from an accretive e ff ect from the acquisition of Familypark. The negative free cash fl owof €13 million re fl ects the Group’s high level of investments during the year (up by €20 million compared to the previous year). The increase in non-current fi nancial assets includes the acquisition of Familypark for €56.3 million. Other net financial investments amounting to €19.9 million mainly result from the call for funds relating to our 20% stake in Jardin d’Acclimatation, from the fi nancing of accommodation improvement operations and from minority investments in new construction programmes in mountain areas, as well as from the advances granted to non-consolidated companies. The change in borrowings included: l the reversal of Familypark’s borrowings amounting to €18 million; l the raising of a new €65 million loan on the USPP market; l the implementation of a short-term marketable securities issuance programme (NEU CP), the outstanding amount of which at 30 September amounted to €134 million. Compagnie des Alpes paid out €16 million in dividends, an increase of €3.8 million compared to the previous year. The subsidiaries, meanwhile, paid out almost €4.5 million to their minority shareholders.

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Compagnie des Alpes I 2019 Universal registration document