Compagnies des Alpes // 2019 Universal Registration Document
1 INTRODUCTION TO COMPAGNIE DES ALPES AND ITS ACTIVITIES Activities, markets and competition
1.1 Activities, markets and competition
With over 23.5 million visits to its 24 (1) sites in 2018/2019, Compagnie des Alpes is a major player in the European Leisure sector. It is the world leader in ski area management (2) , operating 11 of the largest ski areas in France. It is also a major European player in leisure parks with 13 sites: 5 in France, 4 in Belgium, 1 in the Netherlands, 1 in Switzerland, 1 in Austria and 1 in Canada. 1.1.1 SKI AREAS (52% OF 2018/2019 GROUP CONSOLIDATED REVENUE) The Group’s ski lift companies equip, maintain and operate ski areas. Their main task is to develop and manage natural areas in order to be able to o ff er their customers alpine skiing activities and high-altitude recreational activities in a way that respects the environment and o ff ers optimal safety. Although skiing is a widespread activity, there are very few “large” resorts (a resort is considered “large” when it exceeds one million skier- days per season) and 83% of these are located in the Alpes. DISTRIBUTION OF THE GLOBAL SKI MARKET BY GEOGRAPHIC AREA (IN NUMBER OF SKIER-DAYS)
The resorts where Compagnie des Alpes operates are all located in France, where the business model is based on very-long-term concession agreements. The characteristics and durations of these agreements are described in Chapter 5 (Note 1.14.to the Consolidated Financial Statements). Compagnie des Alpes is thus one of the key contributors to the local economy, alongside accommodation providers, local authorities and French ski schools. Their revenues are drawn from entrance fees for ski lifts. Expenses are related to the fi nancing of facilities, personnel costs, taxes and local fees, and normal operating costs (maintenance, energy, insurance, etc.). In addition to its portfolio of 11 ski areas, Compagnie des Alpes holds minority interests in 4 French companies that operate the ski areas in Chamonix (37.5%), Avoriaz (20%), Valmorel (20%), and La Rosière (20%). As a secondary activity, the Group sells land to real-estate developers. At present, this activity has not exceeded 5% of total Ski areas revenue and has been limited to two ski areas – Les Arcs and Flaine. This business is conducted under the development concessions that are also described in the above-mentioned Note 1.14.As the land is held for sale, its net book value is recorded under inventories on the balance sheet (Chapter 5). 1.1.1.1 The global ski market (3) The global ski market is made up of close to 2,000 resorts in around 67 countries. It records a total of 400 million skier-days (including indoor ski slopes) and o ff ers professional accommodation for 6 million, primarily concentrated in developed countries. In the 2018/2019 season (4) , the three countries that registered the highest number of skier-days were the United States (59.0 million), Austria (54.1 million) and France (53.4 million).
1 % Miscellaneous
15 % $VLD 3DFLŮF
44 % Europe – Alps
21 % Americas
9 % Eastern Europe and Central Asia
10 % Rest of Western Europe
1.1.1.2 Market and competition in Europe (3) Very few skiers take long-haul fl ights to go skiing on the other side of the world. Consequently, the real market for Compagnie des Alpes is Europe. The European ski market is estimated at 45 million people, representing 220 million skier-days. Based on average receipts of €30 per skier-day, this represents a market of €6.5 billion. There are numerous market players in Europe, most of which operate on just one site. Compagnie des Alpes, along with Swedish group Skistar, which is listed on the Stockholm stock market, is one of the only groups to operate several sites. There are four major skiing countries in Europe: France, Austria, Switzerland and Italy. Only France and Austria have more than ten resorts welcoming more than one million skiers per season. It is worth noting that the percentage of concession area used is 21% in France, 62% in Austria and 70% in Italy (5) . According to a study conducted by Domaines Skiables de France, a French ski pass costs less than an Austrian ski pass (11%) or a Swiss one (17%).
(1) On 1 April 2019, Compagnie des Alpes acquired 100% of the shares in Familypark, the leading Austrian leisure park. (2) No company or group comparable to Compagnie des Alpes that operates ski lifts has a higher number of skier-days than the Group. (3) Source: Laurent Vanat, “2019 International Report on Snow & Mountain Tourism”. (4) Source: Domaines Skiables de France – 2019 Indicators and Analysis. (5) Source: Laurent Vanat for DSF.
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Compagnie des Alpes I 2019 Universal registration document
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