Compagnies des Alpes // 2019 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

Liquidity risk The Compagnie des Alpes Group anticipates its fi nancing needs. When the Finance Department draws up its multi-year plans, it ensures that it always has su ffi cient liquidity to cover investments and current operations, and cope with any exceptional events. The medium-term debt of the Compagnie des Alpes Group is diversi fi ed, as described in Note 6.11, and is based on disintermediated and bank fi nancing (loans from a banking pool, bilateral bank loans, bond issues, revolving credit facility) with staggered maturities. Most of these credit facilities are subject to a banking covenant, which is described in Note 6.11 to the Consolidated Financial Statements. Short-term liquidity needs are covered by bank overdrafts which are renewable annually and are not subject to covenants, and/or by a Negotiable European Commercial Paper (NEU CP) programme capped at €240 million. This programme is backed by a revolving credit facility of €250 million (expiring in May 2023). To increase the liquidity of this programme, we have added a swingline of €80 million. As of 30 September 2019, the Group’s net fi nancial debt stood at €540.5 million. As at 30 September 2019, the Group had a significant bu f fer of undrawn credit facilities:

l €106 million in medium- and long-term loans can be drawn upon at any time: l a revolving credit facility of €106 million expiring in May 2023; l moreover, for short-term requirements, €104,1 million is available at any time in the form of overdrafts. The liquidity risk review shows that the Group currently has enough credit lines (bonds, revolving loan, bank loans, overdraft facilities, and NEU CP programme) to fi nance its investments and working capital requirement. COUNTERPARTY RISK All cash investments and fi nancial instruments are set up with leading institutions and banks and in accordance with the rules regarding security and liquidity. For derivatives and transactions settled in cash, counterparties are restricted to top-notch fi nancial institutions. The Group’s exposure to counterparty risk is therefore low.

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Compagnie des Alpes I 2019 Universal registration document