Compagnie des Alpes (1K) | Buy | Trimming ahead of an H2 catch-up

Research evidence excerpt

Compagnie des Alpes (1K) | Buy | Trimming ahead of an H2 catch-up

e cash flow.

n Leisure spending is discretionary. Weaker consumer

Catalysts confidence can pressure attendance, in-park spend, and hotel

n Continuous upgrades of parks occupancy.

n Expansion of the Urban Group network

n Hotel capacity expansion at flagship parks (2027/28).

Key data charts

FCF Sales split by region Sales split by division

200.0 30.0%

Ski Areas and 25.0% 9% 14.3% 150.0 Outdoor France

20.0% Activities

100.0 15.0% 43%

50.0 10.0% Leisure Parks

5.0% 49%

0.0 Outside France

0.0% 85.7%

-50.0 -5.0% Distribution &

21 22 23 24 25 26E 27E 28E Hospitality

Att. FCF (m) (LHS) Att. FCF Yield

SWOT analysis

Strengths Weaknesses

n Flagship leisure parks and Ski areas with strong IP and recognition n Heavy capex (20%+ of sales) to sustain attractiveness and capacity

n Scale and expertise in operating complex leisure infrastructures n Seasonal concentration drives volatile cash flow phasing

n Diversified activities limiting reliance on one activity or season n Geographic concentration: Ski in French Alps, parks in W. Europe.

n Long-term PSCs in ski ensuring visibility and stable cash flows. n Energy & climate risk: Reliant on snow and energy costs

Opportunities Threats

n Accommodation build-out to boost stay length and per-capita spend n Long-term risk of reduced ski seasons despite altitude advantage

n Expansion of Urban’s football/padel centers n Renewal of public service contracts not guaranteed

n Acquisition of underinvested regional parks with turnaround potential n Leisure spending exposed to household budget constraints

n Growth of events and indoor attractions extending park seasons. n Rivalry from global players (Disney, Merlin) with strong brand equity