Compagnie des Alpes - 2017 Registration Document

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

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 (1) , and according to a study conducted by Domaines Skiables de France, a French ski pass costs less than an Austrian or Swiss ski pass.

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.

Number of large resorts*

Country France Austria

Size of ski area (km 2 )

Number of lifts Number of resorts

1,180 1,050

3,346 3,028 1,691 2,127

325 254 193 349

13 15

Switzerland

950

6

Italy

1,350

7

* Resorts with 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 offering: Alps, Massif Central, Pyrenées, 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 2016/2017 season, 51.1 million skier-days were sold, with Domaines Skiables de France estimating an average receipt per skier- day of €25.90. The French ski market thus represents €1.323 billion. The vast majority of customers are French (73%). British customers represent 10%, followed by Belgians at 6%, and the Dutch at 4% (2) . As of 30 September 2017, the market share for Compagnie des Alpes and its consolidated companies was more than 32% by value and over 27% by volume. The two largest operators after Compagnie des Alpes, Sofival (Avoriaz, Valmorel and La Rosière) and S3V (Courchevel, La Tania and Méribel Mottaret), each hold a market share of around 5% (3) . Competitive advantages of Compagnie des Alpes CDA’s 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 offers 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, offers a variety of slope profiles 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 offers 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 2016/2017, these two companies generated revenue of €136.0 million with close to 4.6 million skier-days. Tignes-Val-d’Isère 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 offers 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)

(1) Source: Laurent Vanat for DSF. (2) Source: Domaines Skiables de France – 2017 Indicators and Analysis, October 2017. (3) Source: Montagne Leaders, No. 263 – September and October 2017.

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Compagnie des Alpes I 2017 Registration Document