Compagnies des Alpes // 2019 Universal Registration Document

1 INTRODUCTION TO COMPAGNIE DES ALPES AND ITS ACTIVITIES Activities, markets and competition

France’s leading position in Europe is largely due to the size of its domestic market, which represents around 70% of business. Meanwhile, the majority of visitors to Swiss ski resorts (45%) and Austrian ones (65%) are foreign.

The Compagnie des Alpes Group is the leading European operator of ski resorts, as well as the global market leader.

Size of ski area (km 2 )

Number of lifts

Number of resorts

Number of large resorts*

Country France Austria

1,180 1,050

3,346 3,028 1,446 2,127

325 254 186 349

13 16

Switzerland

950

5 7

Italy

1,350

* Resorts recording over one million skier-days.

1.1.1.3 The French ski market The French ski market is primarily a network of 250 internationally renowned ski areas spread between 6 mountain ranges varying greatly in terms of size and o ff ering: Alps, Massif Central, Pyrenees, Vosges, Jura and Corsica. However, there are also 325 resorts with at least one ski lift, 238 of which belong to Domaines Skiables de France (DSF), the professional body for ski area operators. During the 2018/2019 season, 53.4 million skier-days were sold, with Domaines Skiables de France estimating an average receipt per skier- day of €27.2. The French ski market thus amounts to €1,452 million. The vast majority of customers are French (72%). British customers represent 10%, followed by Belgians at 5%, and the Dutch at 3% (1) . At 30 September 2019, Compagnie des Alpes’ revenue from its Ski areas amounted to €443.8 million, with a total of 14.0 million skier- days. The market share of Compagnie des Alpes and its consolidated companies thus amounted to more than 30% in terms of value and over 26% in terms of volume. The two largest operators after Compagnie des Alpes, So fi val (Avoriaz, Valmorel and La Rosière) and S3V (Courchevel, La Tania and Méribel Mottaret), each hold a market share of around 5% (2) . Competitive advantages of Compagnie des Alpes Compagnie des Alpes’ competitive advantages relate mainly to the Group’s resort locations: it has chosen to operate exclusively in resorts with vast, high-altitude ski areas that are well known in Europe, and which have considerable professional accommodation capacity. 1.1.1.4 Main ski areas operated by Compagnie des Alpes Paradiski: La Plagne, Les Arcs and Peisey-Vallandry Paradiski - With its 425 kilometres of slopes on close to 15,000 hectares. Paradiski is one of the world’s largest ski areas. The Vanoise Express, which is the highest-capacity cable car in the world, links the three renowned resorts that make up this ski area: La Plagne, Les Arcs and Peisey-Vallandry. La Plagne La Plagne, created in 1960, is the world’s biggest ski resort, with 79% of the ski area above 2,000 metres, 10 villages, a facility-equipped glacier at 3,250 metres, and a downhill descent of more than 2,000 metres. It has seen the birth of champions such as Kévin Rolland and Julien Lizeroux and is host to prestigious alpine events. Les Arcs Covering an altitude of between 1,200 and 3,226 metres, Les Arcs o ff ers an exceptional ski area. Les Arcs is the most avant-garde of

all alpine resorts – world famous for the resort town’s architecture, a pioneer of new snow sports, and the birthplace of snowboarding in Europe. The resort, which is made up of four villages, o ff ers a variety of slope pro fi les catering to all levels of skiing, a panoramic view of Mont-Blanc, and plenty of sunshine. Peisey-Vallandry The geographical centre of Paradiski, Peisey-Vallandry o f fers authenticity and cheerful hospitality on a human scale. This resort, which welcomed its first skiers in 1948, comprises five Savoyard villages. The varied slopes of Peisey-Vallandry are located on the sunny wooded face of Les Arcs. The resort also boasts a vast Nordic skiing area for cross-country skiing, snowshoeing, or sledding. Compagnie des Alpes operates the La Plagne ski resorts through its subsidiary SAP and the Les Arcs and Peisey- Vallandry stations via its subsidiary ADS. In 2018/2019, these two companies generated revenue of €147.8 million with close to 4.8 million skier-days. Tignes-Val-d’lsère connected ski area The connected ski area of Tignes-Val-d’Isère comprises the French resorts of Val-d’Isère and Tignes in Savoie. It extends from the Pisaillas glacier above the Col de l’Iseran in Val- d’Isère to the Grande Motte glacier above Val Claret in Tignes. Tignes Tignes o ff ers a unique way of experiencing the mountains. The seasons here are the longest in Europe (from the beginning of October to mid- May) owing to the resort’s high altitude (1,550 metres to 3,450 metres) and extend from June to August thanks to the Grande Motte glacier. More than 80% of Tignes’ vacationers are skiers. The clientele is young, international, and sporty. Val-d’Isère Set at an altitude of 1,850 metres in the heart of the Tignes-Val- d’Isère connected ski area, the village of Val- d’Isère, which became a ski resort in 1938, is an international ski resort that blends innovation and authenticity. This constantly evolving resort attracts the most cosmopolitan of customers. Its unique selling point is to o f fer skiing options for all pockets and all technical levels, as well as a comprehensive range of high-quality services. Compagnie des Alpes subsidiaries STGM and STVI manage the Tignes and Val-d’Isère ski areas, respectively. In 2018/2019, they generated revenue of €97.1 million with nearly 3.0 million skier-days.

(1) Source: Domaines Skiables de France – 2019 Indicators and Analysis, October 2019. (2) Source: Montagne Leaders, No. 263 – September and October 2017.

21

Compagnie des Alpes I 2019 Universal registration document