Compagnie des Alpes - 2017 Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

Note 5

Information on the consolidated income statement

5.1 REVENUE Revenue in the Ski areas segment mainly consists of sales of ski lift passes (approximately 96% of business line revenue). Revenue in the Leisure destinations segment mainly comprises sales of admission tickets (about 55% of business line revenue), with the remainder coming from restaurants, stores, merchant services and various ancillary businesses. Revenue in the Group Development segment primarily consists of the sale of admission tickets and project management services. Performance by geographic area is presented for the businesses in France and outside France based on the destination of sales recorded.

The summary information intended for strategic analysis and decision- making by the Group’s Chairman, Chief Executive Officer and Deputy Chief Executive Officer (the chief operating decision-makers referred to in IFRS 8) is organised around the following indicators, by operating segment: z revenue; z EBITDA (gross operating income) and EBITDA margin – EBITDA measures the current operating performance of the segments (revenue – direct costs, which include re-invoicing of operational services provided by support subsidiaries and holding companies); z net capital expenditure and net rate of capital expenditure to sales ratio.

Geographic segment (in thousands of euros)

Leisure destinations

Group Development

Holdings and supports

30/09/2017

Ski areas 426,855

30/09/2016

France

233,493

722

38

661,108 101,068 762,176

620,080 100,099

Excl. France

-

87,445

13,623 14,345

-

TOTAL AT 30/09/2017 TOTAL AT 30/09/2016

426,855 409,601

320,938 301,431

38 12

9,135

720,179

5.2

EBITDA BY BUSINESS SEGMENT

EBITDA breaks down as follows:

Ski areas Total 30/09/2017 30/09/2016 30/09/2017 30/09/2016 30/09/2017 30/09/2016 30/09/2017 30/09/2016 30/09/2017 30/09/2016 Leisure destinations Group Development Holdings and supports

(in thousands of euros)

Revenue EBITDA

426,855 409,601 320,938 301,431

14,345

9,135

38

12 762,176 720,179

154,471 146,758 77,260 68,157 -4,770 -8,652 -23,596 -22,257 203,365 184,006

Operating margin (EBITDA/revenue)

36.2% 35.8% 24.1% 22.6%

NS

NS

NS

NS

26.7% 25.5%

Figures for capital expenditure by segment are also shown below, together with the proportion of revenue they account for.

Ski areas Total 30/09/2017 30/09/2016 30/09/2017 30/09/2016 30/09/2017 30/09/2016 30/09/2017 30/09/2016 30/09/2017 30/09/2016 Leisure destinations Group Development Holdings and supports

(in thousands of euros)

NET CAPITAL EXPENDITURE

86,300 84,090 69,263 58,970

1,345

7,444

3,113

3,101 160,021 153,605

Capital expenditure as a proportion of sales

20.2% 20.5% 21.6% 19.6% 9.4% 81.5%

NS

NS

21.0% 21.3%

Details of these items can be found in the consolidated performance analysis.

5.3

NON-CURRENT INCOME (LOSSES ON PROPERTY, PLANT AND EQUIPMENT)

of assets in 2016/2017 and will normalise the asset management for the Vevey and Montreal sites. Since the impairment of assets did not result from a projected decline in the results of entities that are meant to maintain their operations, but rather from a closure or disposal decision, this expense of €18.8 million was isolated in a separate line, “Loss on property, plant and equipment”. Paragraph 6.1 deals with the impairment tests implemented.

At the end of the season, the Seoul and Prague sites showed income below expectations, including from a medium-term outlook. In these circumstances, the decision was made to withdraw from the Seoul and Prague asset management by sale or closure, which lead to impairment

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Compagnie des Alpes I 2017 Registration Document