Compagnie des Alpes - 2017 Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

5.3.3 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS Fiscal year ended on 30/09/2017 To the Shareholders of the Compagnie des Alpes Opinion Pursuant to the assignment entrusted to us by your shareholders’ meeting, we have performed the audit of the consolidated financial statements of the Compagnie des Alpes relative to the fiscal year ending on 30 September 2017 as attached to this report. We certify that the consolidated financial statements are, according to the IFRS standard adopted in the European Union, regular and honest and give a true image of the result of the transactions in the past fiscal year and the financial situation and assets, at the end of the fiscal year, of the unit composed of the persons and entities included in the consolidation. The opinion expressed above is consistent with the content of our report to the audit committee. Basis of the opinion Audit reference standard We have carried out our audit according to the professional standards applicable in France. We feel that the audit evidence we collected provides a sufficient and adequate basis for our opinion. The responsibilities incumbent upon us pursuant to these standards are specified in the part “Responsibilities of the Statutory auditors relative to the audit of the consolidated financial statements” in the present report. Independence We performed our audit assignment in compliance with the independence rules that are applicable to us, during the period between 1 st October 2016 and the date of our report, and in particular, we have not provided services prohibited under Article 5, paragraph 1 of regulation (EU) No. 537/2014 or under the French Code of Ethics for Statutory auditors. Justification of our assessment – Key points of the audit Pursuant to the provisions of articles L.823-9 and R.823-7 of the French Commercial Code regarding the justification of our assessment, we draw your attention regarding the risks of significant material misstatement which, in our professional judgement, were most significant in the audit of the consolidated financial statements for the fiscal year, as well as the responses we have provided with regard to these risks. These assessments were made as part of the consolidated financial statements taken as a whole and the formation of our opinion expressed above. We express no opinion on elements of these consolidated financial statements taken in isolation. Recognition of revenue Risk identified: The group’s revenue mainly derives from tickets for entry to leisure parks and museums and sales of passes in ski resorts. The resulting income is recognised from ticketing computer systems which may vary depending on the sites. Although the group relies on several systems for internal control (distribution of internal control guides, campaigns for the self-evaluation of sites, etc.) to ensure the accuracy and comprehensiveness of the revenue, we nevertheless considered that the recognition of ticket sales is a key point in the audit, due to the volume of individual transactions, the large number of sites concerned and the existence of different ticketing systems. Our solution: In the context of our audit, while adapting the level of checks according to the estimated level of risk for each site, particularly when new ticketing software is developed, our work includes: z a critical review of the internal-control systems for checking the effectiveness of the procedures put in place to calculate the revenue; z a critical review of the control environment for the IT systems used, with the help of our IT experts; z detailed analytical reviews in order to corroborate the quantified data with seasonal and customer-attendance trends and to ensure that price changes are taken into account; z reconciliation between data from the ticketing systems, incoming payments and data recognised in the accounts. Accounting treatment of the concessions for ski areas Risk identified: The operation of the ski areas by the Compagnie des Alpes lies within a complex legal framework: z the specifics of the mechanical ski-lifts public service are recognised at the legislative and regulatory level via the Mountain Act of 9 January 1985, the major provisions of which were incorporated in French the Tourism Code;

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Compagnie des Alpes I 2017 Registration Document