Compagnie des Alpes - 2017 Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

Bonds During previous fiscal years, Compagnie des Alpes had taken two bonds: z the €200 million bond issued in 2010 (with coupon at 4.875% and maturity in October 2017); z a €100 million bond issue on the Euro PP market in May 2014, with coupon at 3.504% and ten-year maturity. It has put in place financing that will replace the €200 million bond maturing in October 2017. This new financing is composed of a bank component and a bond component: z the bank component is composed of €105 million and includes: z an €80 million depreciable term loan taken from the Group’s long-standing banking partners, which now include a Chinese bank, with a maturity of 5 years for 50% and 6 years for the remaining 50%, z a €25 million depreciable term loan, granted by a new French banking partner, with a final maturity at 7 years. These two loans, with a forward start facility, were drawn in October 2017; z the bond component is composed of €95 million and includes: z a €45 million bond issue on the Euro PP market (“Euro PP”) for a period of 8 years; z a €50 million bond issue on the US PP market (“US PP”), under French law, for an average period of 10 years and final maturity at 12 years. These borrowings were put in place in February and March 2017. The new financing is contracted at a weighted average rate of less than 1.5% (before hedging and transaction costs) and therefore enables the Group to significantly reduce the cost of financing for this €200 million tranche from the 2017-2018 fiscal year. By concluding this refinancing operation, Compagnie des Alpes achieves several objectives: z it substantially reduces the net cost of debt by more than 40%, as of 2017-2018 (with the cost of the 2017 bond borne during the 2016/2017 fiscal year until it falls due along with the carrying cost of the new financing);

z it significantly extends the average maturity of the debt, with due dates extending to 2029 (12 years); z it extends debt repayment periods; z it diversifies its sources of funding. At 30 September 2017, the details of the fair value of these four borrowings were as follows:

z 2010 bond issue: €200 million; z 2014 bond issue: €109 million; z Euro PP 2017 borrowing: €47 million; z US PP 2017 borrowing: €53 million. Revolving credit facility

The Group has a revolving credit facility for a maximum amount of €250 million expiring on 6 May 2021. This revolving credit facility was amended to review the margins and add two 1-year extension options to it (May 2022 and May 2023). The expenses incurred for the issues have been deducted from the value of the borrowings and factored into the calculation of the effective interest rate. Hedging instruments The Group arranged interest rate hedging instruments (borrowings- backed) for its floating-rate commitments. At 30 September 2017, the hedges implemented amounted to €105 million. The hedging instruments used are made up of three fixed-rate swaps: z swap representing €25 million of the debt covered (at 0.80%, expiring in 2018); z floored swap representing €40 million of the debt covered (at 0.35%, expiring in 2023), with a forward start in October 2017; z floored swap representing €40 million of the debt covered (at 0.27%, expiring in 2022), with a forward start in October 2017. The fair-value impact of hedging instruments is recognised under borrowings from credit institutions (€0.2 million).

Exposure of the net debt before hedging (c)=(a)-(b)

Interest-rate hedging instruments (d)

Exposure of the net debt after hedging (e)=(c)+(d)

Financial assets (a)

Financial liabilities (b)

At 30/09/2017 (in millions of euros) Less than 1 year From 1 to 2 years From 2 to 3 years From 3 to 4 years From 4 to 5 years

Floating-

Floating-

Floating-

Floating-

Floating- rate

Fixed-rate

rate Fixed-rate

rate Fixed-rate

rate Fixed-rate

rate Fixed-rate

10.90

35.95 -214.84 -12.77 -203.93

23.18

25.00 -203.93

48.18

-2.21 -0.90 -0.64 -0.59

-2.21 -0.90 -0.64 -0.59

- - - - -

-2.21 -0.90 -0.64 -0.59

- - - - -

Over 5 years

-195.38

-195.38

-195.38

TOTAL

10.90 35.95 -414.55 -12.77 -403.64 23.18

-

25.00 -403.64 48.18

Information on the repayment clauses 1 Banking covenants

The new bonds and bank loans taken in 2017, as well as the revolving loan facility are subject to a common covenant. It corresponds to the “Consolidated net debt/Consolidated EBITDA” financial ratio. This covenant is reviewed twice a year, on 31 March and 30 September, and should be less than or equal to 3.5.

At 30 September 2017, this ratio was respected:

Ratio at 30/09/2017

Covenant

Consolidated net debt/Consolidated EBITDA

≤ 3.50

1.87

128

Compagnie des Alpes I 2017 Registration Document