Compagnie des Alpes - 2017 Registration Document

DEVELOPMENT MODEL

A SPECIFIC BUSINESS MODEL FOR EACH ACTIVITY

CLOSER RELATIONSHIP WITH THE SKI AREAS' ECOSYSTEM In its operation of ski lifts, and often ski runs, within the framework of the PSC*, the Group collaborates with all resort players.

IN A MATURE EUROPEAN MARKET, THE STRATEGY CONSISTS IN BOOSTING VOLUME GROWTH WHILE MAINTAINING A GOOD PERFORMANCE LEVEL O Improving the ski offering O Enhancing the customer experience, in particular by offering connected applications O Boosting distribution O Increasing accommodation capacity and occupancy rates In 2017, the number of skier-days increased for the 2 nd consecutive year. IN A DYNAMIC MARKET, THE STRATEGY AIMS TO IMPROVE OPERATIONAL PERFORMANCE WHILE ACCELERATING GROWTH O Managing the portfolio in a more integrated way O Deploying the strategy of Very High Satisfaction and improving the quality of the services O Offering unique, immersive experiences O Increasing the length of stays and extending the catchment areas O Boosting marketing activities and capitalising on flows Since 2014, sales have grown by a total of over 31% on a comparable scope, while operational profitability more than doubled.

Revenue Sales of ski passes account for 95% of revenue. Price management is optimised through the public service concession (PSC) price grids. Operational profitability Its increase is attributable to optimised processes and the control of purchases, payroll and distribution costs. Investments Capital expenditure dedicated to ski lifts, artificial snow-making, ski run grooming and the attractiveness of the resorts is instrumental for the renewal of PSC contracts and the enhancement of the customer experience. Revenue The Group's revenue mainly stems from sales of admission tickets, along with park activities (food services, shops and other services, etc.), which account for 1/3 of the total. Operational profitability Its improvement rests on the optimisation of processes, the reduction of costs and purchases, and the control of visitor acquisition costs. Investments Improving the sites and their infrastructures boosts their attractiveness; expanding accommodation capacities means new visitors, who stay longer.

* Public service Concession

BROADENING THE OUTREACH OF LEISURE DESTINATIONS Depending on their positioning, leisure parks attract national or even international visitors, in addition to local customers.

EXPORTING OUR EXPERTISE Compagnie des Alpes has recognised expertise: it develops its expertise internationally in its two business lines.

SUPPORT AND CONSULTING CONTRACTS – SHOWCASING OUR EXPERTISE AND A GATEWAY INTO NEW MARKETS The Group's operational excellence, as well as its capacity to innovate and harness the ecosystems where it operates, have enabled it to position itself as an expert in the design, development and operation of ski resorts and leisure parks. In partnership with investors wanting to increase the attractiveness of their territories, Compagnie des Alpes operates in several regions of the world. It has already accumulated solid references in Russia, Southern Europe, the Maghreb, China - a strategic market for the ski and leisure industries - and Japan.

MARKET OPPORTUNITIES

The tourist industry is still growing and offers opportunities for expansion

“ COMPAGNIE DES ALPES HAS THE CAPABILITY TO SEIZE MARKET OPPORTUNITIES ”

In the ski segment, the global market is boosted by the development of resorts in new world regions, such as China, Russia, and Turkey. Both of these relatively fragmented markets show a consolidation potential. With its long-standing track record of close relationship with the ecosystems in which it operates, along with operational expertise

The dynamics are different in each of the market segments. Leisure destinations are boosted by new holiday trends, resulting in an increase in short stays.

and the capacity to plan and manage major capital expenditure, Compagnie des Alpes intends to be a key player in the consolidation of the sector.

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Hôtel des 3 Hiboux - Parc Astérix. Compagni des Alpes I 2017 Registration Document