Compagnie des Alpes - 2017 Registration Document

5 FINANCIAL INFORMATION

Analysis of consolidated results and sectors

5.1.2

CASH, FINANCING AND CAPITAL

5.1.2.1 Cash and cash equivalents

30/09/2017

30/09/2016

(in millions of euros)

Operating cash flow after borrowing cost and tax Net capital expenditure (CAPEX, net of disposals) Change in receivables and payables on non-current assets

169.1

154.6 -152.5

-168.8

8.8 9.1

-1.1 1.0

FREE CASH FLOW

Acquisition/Disposal of non-current financial assets

-2.6 61.1

-12.7

Change in borrowings

5.3

Dividends (including non-controlling interests in subsidiaries)

-13.9 -2.6 51.0

-13.8

Change in WCR and other

16.8 -3.5

CHANGE IN CASH POSITION

component of €105 million and a bond component of €95 million. It 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

Operating cash flow totalled €169.1 million (22.2% of revenue), a rise of 9.3% compared with 30 September 2016, reflecting the improvement in the Group’s business activities. The free cash-flowof €9.1 million thus reflects the significant growth in the operating cash flow, despite the high level of investment in the 2016/2017 fiscal year in the Group’s two main businesses (+€13.5 million, i.e. a 9.5% growth). The increase in non-current financial assets mainly results from the financing of accommodation improvement operations and minority investments in new construction programmes in ski areas. The disposal of Grévin Deutschland resulted in the receipt of €6.7 million in cash, including the price of disposal and the refund from current accounts. Compagnie des Alpes paid out €9.7 million in dividends. The subsidiaries, meanwhile, paid out almost €4.2 million to their minority shareholders. 5.1.2.2 Structure of borrowings The Group’s (gross) financial debt (€427.3 million) comprise 96.2% fixed-rate loans and 3.0% variable-rate loans (see Note 6.11 to the Consolidated Financial Statements). The Company has put in place financing that will replace the €200 million bond maturing in October 2017: it is composed of a bank

dates extending to 2029 (12 years); z it extends debt repayment periods; z it diversifies its sources of funding. 5.1.2.3 Exposure to banking covenants

The covenant that the Group must conform to is the following: Net debt to EBITDA ratio, which must remain less than or equal to 3.5. Given the improvement in the Group’s performance as a whole, this improved considerably from 2.01 in the previous year to 1.87. For information, the debt/equity ratio remained stable at 0.46.

5.1.3

EVENTS AFTER THE REPORTING PERIOD

In October, the Group redeemed its €200 million bond that had matured and drew two bank loans of €25 million and €80 million contracted in February.

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Compagnie des Alpes I 2017 Registration Document