Compagnies des Alpes // 2019 Universal Registration Document

Businesses firmly rooted in their ecosystems

CLOSER RELATIONSHIP WITH THE SKI AREAS' ECOSYSTEM

SPECIFIC PSC* FRAMEWORK The management of operations is entrusted to Compagnie des Alpes' subsidiaries through a Public Service Concession (PSC) granted by the local authorities and running for several decades. A ski area may be operated under several PSCs. Under the contracts signed, Group companies must make the required investments for the proper functioning of the ski areas. In exchange, they collect the proceeds from the sale of transport tickets, based on an approved price framework.

REAL ESTATE ASSETS OF THE RESORTS The Group works on accommodation, adopting a facilitator and occasionally an investor role with a view to increasing the amount and quality of tourist accommodation, and its occupancy rate. Furthermore, to boost the marketing of accommodation in the resorts, the Group has a network of real estate agencies. SPECIFIC STAKEHOLDERS The Group's companies work in close collaboration with speci fi c stakeholders, such as local authorities, tourist o f fices, accommodation providers, ski schools, public transport services, and property owners. The activities and facilities are mainly based in public areas and in natural areas. Projects are subject to procedures and authorisations from government bodies (DREAL, DDT, STRMTG, etc.) or local authorities, as well as the opinions of local associations. The Group's companies play an active role within the inter-professional chamber “Domaines Skiables de France”. POSITION IN THE VALUE CHAIN The sale of ski passes is either done directly, or through intermediaries such as major accommodation providers, tourism professionals or tour operators.

Revenue Sales of ski passes account for 98% of this division's revenue. The activity is seasonal: most of the revenue is earned during 4 or 5 winter months. The customer base includes around 40% foreign customers (from the UK, Belgium and the Netherlands).

Operational profitability Its increase is attributable to optimised processes

and the control of purchases, expenses and distribution costs.

Investments Capital expenditure dedicated

to ski lifts, artificial snow-making and ski-run grooming help to boost the attractiveness of the resorts, broaden the ski offering, and enhance the customer experience. They are instrumental for the renewal of PSC contracts.

In its operation of ski lifts, and more often

ski runs (grooming, safety/ rescue services, and artificial snow-making) within the

framework of the PSC, the Group collaborates with all resort players.

*

Public Service Concession.

Compagnie des Alpes I 2019 Universal Registration Document 8