Compagnie des Alpes - 2017 Registration Document

1 INTRODUCTION TO COMPAGNIE DES ALPES AND ITS ACTIVITIES History

1.3 History INCREASINGLY SUCCESSFUL DEVELOPMENT 1989: Creation of Compagnie des Alpes by Caisse des Depôts 1989-1990 : Tignes (STGM - Société des Téléphériques de la Grande Motte) and Peisey-Vallandry (STAG - Société des Téléphériques de l’Aiguille Grive) consolidated under the acquisition policy. 1991-1994: La Plagne (SAP - Société d’Aménagement de la Plagne), Les Arcs (STAR - Société des Téléphériques de l’Aiguille rouge) and Chamonix – Les Grands Montets (Satal - Société d’Aménagement du Téléphérique Argentière-Lognan) consolidated. 1994: Compagnie des Alpes floated on the second marché of the Paris Stock Exchange. 1995: Les Menuires (Sevabel – Société d’Exploitation de la Vallée des Belleville) consolidated. 1996 : Minority stake taken in Courmayeur (CMBF Courmayeur Mont- Blanc Funivie) and Val d’Aoste (Italy). 1997 : Flaine, Samöens, Morillon and Sixt (Grand Massif) consolidated. 2000 : Méribel Alpina and Téléverbier (Switzerland) consolidated. 2001 : Minority stake taken in Saas-Fee (SFB – Saas-Fee Bergbahnen, Switzerland). 1.2.2 OUTLOOK In terms of the Ski areas, since the business outlook concerns the entire season, the prospects offered by the calendar of school holidays (including the dates of European school holidays) are generally favourable. The first snowfall on the mountains and the long cold period in November makes it possible for resorts to offer a quality product to our customers. Reservation forecasts are currently slightly higher than last year’s. The Group also intends to pursue a sustained investment policy of €93 million over the 2017/2018 fiscal year, support PSC renewals and extensions, to secure snow levels and support the Very High Customer Satisfaction objective. It aims to achieve an EBITDA margin on revenue of around 36% over the next two years for this activity. In Leisure destinations: the Halloween season lived up to its promise, with business exceeding that of the previous year despite a high comparison basis (four consecutive seasons with sharp increases in business), confirming the appropriateness of the Group’s event strategy to boost shoulder season business. In this activity as well, growth will be driven by investments in accommodations (Parc Astérix) and new offers (transformation of the Walibi Belgium and Rhône-Alpes parks, opening of an aquapark in Bellewaerde, for example). Investments in the Leisure destinations division will increase by around €20 million in 2017/2018 and reach almost €90 million. As of 1 October 2017, the scope of the Leisure destinations division includes the activities of Chaplin’s World By Grévin and Grévin Montreal. These activities dilute the EBITDA margin, but given the good performance recorded during this fiscal year, the

2002: Diversification Compagnie des Alpes diversified its activity by launching a friendly takeover bid for Grévin et Compagnie (a group of ten parks: Musée Grévin , Parc Astérix , France Miniature , Grand Aquarium de Saint- Malo , Parc des Mini Châteaux , Aquarium du Val de Loire , Bagatelle , A vonturenpark Hellendoorn and Dolfinarium in the Netherlands, and Fort Fun in Germany). 2003 : Aquaparc in Bouveret (Switzerland) consolidated. 2004 : Panorama Park (Germany) and Pleasurewood Hills (England) consolidated. 2004: Privatisation Caisse des Dépôts et Consignations (CDC) holds only 40% of CDA capital (compared to 53% prior). CDC sells a 13% stake to three banking groups with a strategic interest in the Alps region. 2004-2005 : Serre Chevalier (SC 1350 – Serre Chevalier Ski Développement) and Aletsch Riederalp (Switzerland) consolidated. 2005 : Planète Sauvage (Loire-Atlantique) and Mer de Sable (Oise) consolidated. Group maintains, on the basis of this new expanded scope, its target EBITDA margin (excluding Futuroscope) of 27% in 2019. Operating ROCE, which measures the profitability of the capital invested in Ski areas and Leisure destinations, is expected to increase over the period 2018-2022, but in a non-linear way, given that the revenue related to investments in leisure parks occurs one to two years after the recording of the investment expenses, and the expenses for launching new offers are, in general, incurred the year preceding their opening. In addition, the Group refinanced the success of its 2017 bond (€200 million) and amended its RCF syndicated loan (€250 million). This transaction further strengthens its financing structure, diversifies its sources of financing and extends the average maturity of the debt to 6.6 years, with no major repayment deadline before 2022. It will result in a reduction in the cost of net debt of more than 40% from 2017-2018, and the weighted average rate of financing raised will be less than 1.5%. In conclusion, on the strength of a proven economic model, Compagnie des Alpes is now pursuing two objectives: consolidate its growth in Europe and accelerate its international development, particularly in Asia. These strategies aim to turn Compagnie des Alpes into a great French leisure champion and a major player in the international consolidation. This is why the Group wants to secure the support of powerful partners, particularly in leisure, the hotel trade and tourism marketing.

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Compagnie des Alpes I 2017 Registration Document