Center Parcs Leisure Deutschland GmbH

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Befreiender Konzernabschluss gem. § 291 HGB
zum Geschäftsjahr vom 01.10.2020 bis zum 30.09.2021

CENTER PARCS EUROPE N.V.

CAPELLE AAN DEN IJSSEL/Niederlande

ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2021

CONTENT

1 / DIRECTORS' REPORT

FINANCIAL STATEMENTS 2020/21

2 / CONSOLIDATED BALANCE SHEET

3 / CONSOLIDATED STATEMENT OF PROFIT & LOSS AND OTHER COMPREHENSIVE INCOME

4 / ACCOUNTING POLICIES

5 / NOTES TO THE CONSOLIDATED BALANCE SHEET

6 / NOTES TO THE CONSOLIDATED STATEMENT OF PROFIT & LOSS AND OTHER COMPREHENSIVE INCOME

7 / PARENT COMPANY BALANCE SHEET

8 / PARENT COMPANY PROFIT & LOSS ACCOUNT

9 / ACCOUNTING POLICIES

10 / NOTES TO THE PARENT COMPANY ACCOUNTS

OTHER INFORMATION

11 / RESULT APPROPRIATION

12 / BRANCH OFFICES

13 / INDEPENDENT AUDITOR'S REPORT

1 | DIRECTORS' REPORT

General

Activity

Center Parcs Europe N.V. ("the Company", hereafter CP), a 100 % owned subsidiary of CP Holding SAS in Paris, operates its business in three European countries (The Netherlands, Belgium, Germany). In 2020/21 it operated 22 villages (2019/20: 21), of which 2 (2019/20:1) under management contract. The Company's core business consists of the offering of (short-stay) holidays on its villages. As a related activity it performs property development activities to update and further develop its portfolio of villages.

Developments

Covid-19 pandemic

As the Covid-19 pandemic entered its second wave in the first quarter of 2020/21, the company was hit hard by compulsory closings in Germany between November and May, and in Belgium, between November and February, as well as restricted services offerings in the Netherlands and the other countries when the parcs reopened. This resulted for example in limited access to the restaurants and the Aqua Mundo (varying between villages).

Several governmental measures have been taken by national governments to help companies ease the impact of the Covid-19 pandemic. Center Parcs applied for NOW3 grants, tranches three, four and five, with the Dutch government. The Dutch companies were provisionally granted subsidies amounting to € 13.9 million. Advances were received on the subsidy totalling € 11.1 million. Based on calculations and risk assessment € 11.9 million was recognized in the result of 2020/21 for NOW3. In addition based upon the unqualified opinion of EY and the assessment thereof by UWV for NOW1 additionally € 0.9 million was recognized in the result for 2020/21.

In Belgian it was able to make use of (€ 7.6 million) temporary unemployment facilities.

Temporary unemployment facilities were also used in Germany (for € 3.0 million) as well as German November Hilfe, Dezember Hilfe and Uberbrückungshilfe 3. The three German subsidies are provisionally granted for a total of € 42.2 million. Recognition in the financial statement of 2020/21 has been limited to € 36.2 million based on a risk assessment that estimated the impact of additional clarifications given by the German government between the moment of initial application and the moment of final application as well as the possible impact following the finalization of the German statutory accounts for all financial years up to and including 2020/21 under German HGB over the coming months.

CP continued strong monitoring of the costs to reduce the impact on the results. In addition, negotiations with institutional investors have allowed to decrease the amount of the external rents significantly.

Despite all the initiatives, the Covid-19 pandemic has had a very strong effect on the business of Center Parcs:

•

full loss of the touristic turnover during the closed period,

•

remaining fixed costs that the company could not further adjust,

•

the sanitary measures during the reopening period caused additional loss in turnover

(especially in catering and leisure) and costs (materials and cleaning).

In the fourth quarter of the financial year, when the villages reopened with less and less restrictions, the company has shown a strong resilience evidenced by strong demand resulting in high occupancy rates and villa prices (+10.4 % average villa prices compared to the same period in 2019/20).

Going concern principle used to prepare the consolidated financial statements of Center Parcs Europe NV for the financial year ended 30 September 2021

Following the health crisis, Pierre et Vacances SA (PV SA | PVCP Group | the Group), the ultimate parent company, is facing financial difficulties. In order to overcome these difficulties at that level (PV SA) the intervention of a conciliator for the French activities of the Group was justified. In that conciliation process the group restructuring was set-up as a two-step process:

•	Provision of New Financing during the 2020/21 financial year predominantly via the Company
•	Implementation of a capital strengthening transaction for the Group

This restructuring process would allow the group to continue its business plan 'Reinvention 2025'. These circumstances have an impact on CPE as the company has outstanding receivables on the Group and an external loan that needs to be repaid.

New Financing

On May 10, 2021 PV SA accepted a binding financing offer from a conglomerate of existing financing partners for a maximum aggregate amount of € 300 million (New Financing) following a competitive process open to third party lenders.

The first tranche of € 175 million was made available to the Company (CPE NV) on June 24, 2021. The second tranche of € 125 million was made available to the Company (€ 90.5 million) and Pierre et Vacances SA (€ 34.5 million) on December 1, 2021.

The financing facility has a maturity of 15 months and can be extended at request of the Company with 12 to 24 months on the condition that at PVCP Group level at least € 10 million cash is available. One of the conditions to the New Financing is that an equity strengthening transaction process is entered into at the level of PVCP Group.

Equity Strengthening Transaction PVCP Group

On March 10. 2022 the group closed such a transaction with three major investors:

•	(i) Alcentra Limited (also a financial creditor of the Group),
•	(ii) Fidera Limited (also a financial creditor of the Group), and
•	(iii) Atream (also an institutional landlord of the Group) (together the "Investors").

The transaction includes:

•	Injection of equity of € 200 million to strengthen the balance position of the group,
•	Conversion of € 551 million of groups unsecured debt into equity,
•	Partial reinstatement of New Financing by setting up a senior term loan of € 174 million to the benefit of the Company,
•	Implementation of new governance structure,
•	Outsourcing of the financing of the real estate business.

The completion of the equity strengthening transaction (for PVCP Group) is subject to certain conditions precedent. It should be completed no later than 16 September 2022, unless specifically extended. In a press release of April 22, 2022 the Group confirmed the following updates on these conditions:

i.	the capital reduction by way of a reduction in the par value of the shares from € 10 to € 0.01 has been implemented by the Board of Directors upon the authorization of the Annual General Meeting of 31 March 2022. The capital reduction should be realized in the next few days. After such reduction, the number of outstanding shares, i.e. 9,893,463, will remain unchanged, and the share capital will be reduced to € 98,934.63,
ii.	the so-called "closure" aid to compensate for the uncovered fixed costs of companies whose activity was particularly affected by the covid-19 pandemic has been received in the amount of 24 million euros. As announced in the press release of 10 March 2022, the Group will pay back a portion of this aid to certain individual lessors, in accordance with the agreements concluded with them in the context of the conciliation procedure initiated in 2021,
iii.	discussions with the institutional lenders concerned are continuing in the context of the completion of the Restructuring Transactions,
iv.	on 6 April 2022, the required application for approval by the German Competition Authority under the applicable merger control regulations was filed. The decision of the German Competition Authority is expected in May 2022,
v.	the transactions relating to S.I.T.I., the Company's current controlling shareholder, referred to in the press release dated 10 March 2022, were formalized by an agreement dated 11 March 2022, under the terms of which the mandatory transfer by S.I.T.I. to Alcentra and Fidera of all the preferential subscription rights (DPS) to be received in the Right Issue (as this term is defined in the press release dated 10 March 2022) was reaffirmed. In this context, Alcentra and Fidera have granted a minimum price of €0.19 per preferential subscription right, offered to all Pierre & Vacances SA' shareholders within the framework of the liquidity offer, the maximum price of €0.22 remaining unchanged.

On May 25, 2022 another press release was issued, mentioning the following milestone achievements and satisfaction of the conditions precedent to the Restructuring Transaction:

•	The lack of claims from creditors as of April 22, 2022 enabled the Chief Executive Officer to acknowledge, on April 26, 2022, the definitive completion of the reduction of the Company's share capital not motivated by losses by way of reduction in the par value of the shares from €10 to €0.01. The Company's share capital now amounts to €98,934.63, divided into 9,893,463 shares with a par value of €0.01 each,
•	on April 27, 2022, the approvals required under the applicable merger control regulations in Germany were obtained,
•	during May 2022, the Company obtained all the agreements requested from certain of the Group's institutional lenders to make the necessary adjustments to their documentation in connection with the completion of the Restructuring Transactions,
•	also in May 2022, the Company obtained the agreement in principle of the parties concerned on the terms of the proposed accelerated safeguard plan and on the credit documentation relating to the refinancing of the existing debt,
•	on May 19, 2022, the conciliation protocol regarding the Villages Nature project was approved ('homologué') by the Paris Commercial Court,
•	on May 24, 2022, Finexsi, represented by Mr. Olivier Peronnet, delivered its independent expert report concluding to the fairness of the financial terms of the Restructuring Transactions from the point of view of the Company's shareholders. This report, the conclusion of which is presented in the form of a fairness opinion, is available to the public on the Company's website (www.groupepvcp.com) as from today in the "Finance / Publications / Presentations" section.

The conclusions of the Finexsi report are as follows (free translation from the French): "In conclusion, for the shareholder, the implementation of the Restructuring allows to maintain the continuity of the Company's operations, by cleaning up its financial structure. The Restructuring also makes it possible to restore value in relation to the current situation, and a potential in the future depending on its future performance.

Therefore, in the context of the Company's current financial difficulties, we believe that, as of the date of this report, the terms of the Transaction are fair from a financial point of view to the shareholders."

•

on May 24, 2022, each of Alcentra and Fidera, likely to cross the thresholds of 30 % of the capital and voting rights of the Company as a result of the Restructuring Transactions (or, after completion of the Restructuring Transactions, the thresholds of 30 % of the capital or of the voting rights, or of 1 % of the capital or of the voting rights per 12-month period, as a result of the exercise of the warrants obtained as part of the Restructuring Transactions) has obtained from the AMF an exemption from the obligation to file a public offer on the basis of Article 234-9 of its General Regulations. In this context, Alcentra and Fidera have each undertaken to exercise their Guarantor Warrants (as defined below) no later than by October 15, 2022 and to exercise those concurrently,

•

today, May 25, 2022, the request for the opening of an accelerated safeguard procedure in favor of the Company was filed with the Paris Commercial Court. The opening judgment is now anticipated for May 31, 2022. As a reminder, the accelerated safeguard procedure will only impact the financial creditors directly concerned the draft safeguard plan implementing the Restructuring Transactions provided for in the Agreement (to the exclusion of any other stakeholder, notably lessors or suppliers). The draft accelerated safeguard plan will be made available to the public on the Company's website (www.groupepvcp.com) by mid-June 2022 under the heading "Finance / Publications / Presentations" in anticipation of a vote by the classes of affected parties and the so-called "restructuring" general meeting of shareholders to be held at the beginning of July 2022, for a ruling on the safeguard plan at the end of July 2022 and approval by the AMF of the prospectus supplement incorporating the securities note relating to the Rights Issue in the following days (the target date for settlement-delivery of the Restructuring Transactions remaining, as of today, September 16, 2022).

To date, implementation of the Restructuring Transactions remains subject to the following cumulative conditions precedent:

(i)	completion of the initiatives to implement the new governance structure referred to in Section 6 of the Company's press release of March 10, 2022,
(ii)	approval by the AMF of the Company's prospectus, including in particular the offering circulars (notes d'opération) relating to the various capital increases planned in connection with the Restructuring Transactions,
(iii)	adoption, by the classes of affected parties, of the accelerated safeguard plan and, by the socalled "restructuring" general meeting of shareholders, of all the resolutions necessary for the implementation of the Restructuring Transactions and the resolutions relating to the new governance of the Company, and
(iv)	judgments of the Paris Commercial Court (i) opening the accelerated safeguard procedure and (ii) adopting the accelerated safeguard plan. Any minor shifts in the timetable compared to the indicative timetable described in the press release of March 10, 2022 have been agreed by all parties concerned.

Reinvention 2025

On January 29, 2020, PVCP Group, the companies ultimate parent, presented its strategic plan until 2024, Change Up, with the aim of accelerating and strengthening the Group's transformation, in order to ensure its sustainable profitability. In 2020/21 Change up has been further executed and meanwhile the group entered in a new phase of strategic planning: Reinvention '25.

Reinvention 2025 was announced on May 18, 2021 PV SA. Accelerated by the Covid-19 pandemic, the transformation of the tourism industry will be spearheaded by the Group in its pioneer role by a performance and value-creating strategic plan based on a new vision of reinvented local tourism to boost performance further than under change-up:

•	A radical modernisation and premiumisation across the Group,
•	A switch to offers that are 100 % experience-based, personalised and service-focused,
•	Ambitious and responsible property development serving the customer experience.

In this context, the consolidated financial statements of the Company (CPE NV) for the financial year ended 30 September 2021 were prepared in accordance with the going concern principle, taking into account the position known at the reporting date of the financial statements as described above, binding agreements entered into with the various partners, the latest estimates of cash requirements made in a context of economic recovery and assuming that the conditions precedent would be finalised during the financial year allowing the transaction to strengthen the Group's equity to proceed.

Renovation Projects

General

Part of its Reinvention 2025 plan, as described above, CP is in the process of major renovation works to modernize and premiumize its villages. As per September 30, 2021 renovation works were ongoing on six villages. Over the past three years renovation works on five villages were completed and preparation works for three villages are ongoing.

Village Eemhof (The Netherlands)

A block sale to an institutional investor of 340 cottages, the hotel and central facilities took place in December 2019. The remaining 311 cottages were sold to private investors. The refurbishment of the last cottages was finished in the first quarter of financial year 2021/22.

AroundTown portfolio

This portfolio consists of seven villages Kempervennen, Meerdal, Huttenheugte, Heijderbos, Vossemeren, Erperheide and Bispingen. A deal to renovate these cottages was concluded in December 2018.

The renovation works on Heijderbos and Erperheide were completed in the second semester of 2020/21. The other five villages are currently in execution. The last village is planned to be completed in Q1 2022/23.

Property Development & Corporate Social Responsibility

General

The past year showed the world the first results of the ambitious and responsible property development with the opening of Terhills Resort by Center Parcs. New projects are under way or under study in Germany, Italy, Denmark and Middle East. Center Parcs is developing all its existing and new parcs in line with the international accepted Green Key Certificate, leading standard for excellence in the field of environmental responsibility and sustainable operation within the tourism industry.

Terhills Resort by Center Parcs

In May 2021 CP opened the Terhills Resort by Center Parcs which lies in the heart of the Kempen, Belgium. The smaller sized Park holds 250 cottages and is operated under a management contract. The site was developed where in the past industrial mining and gravel quarrying was its main activity. Reshaping the area back to a place where fauna and flora meet the opportunity for people to relax and enjoy time together fits the corporate social responsibility of CP and its wider group. On top of that it is the only resort in Belgium situated in a national park (National Park de Hoge Kempen).

Nordborg

The Company is developing its very first holiday resort in Scandinavia. Equal to Terhills Resort, the site of Nordborg will be operated under a management contract. The site is located on the island of Als, which is in the southern part of Denmark, 45 minutes from the German border. The site will become a coastal park, with stunning views over the sea. The Village will be developed in different phases, at the opening date in spring of 2024, the Park will have 440 cottages and ultimately count 700 cottages. The construction will be as sustainable as possible minimizing the impact of the parc on its surrounding nature.

Brombachsee

During the course of 2020/21 the Company worked on the development of a new site near Brombachsee (south of Nurnberg, Germany). On May 31, 2021 a referendum was held under the local population where the people voted against further development of the site as a holiday resort. Although the vote was very close and not binding, the Company decided to abandon the project and related expenses have been recognized in the P&L.

Key figures

Key indicators

(in Million €)	2020/2021	2019/2020	Change
Accommodation turnover	295.1	334.9	-11.9 %
Supplementary income	66.7	90.4	-26.2 %
Tourism Activity	361.8	425.3	-14.9 %
Property Developments	110.0	91.2	20.6 %
Total turnover	471.8	516.5	-8.6 %

The total turnover in 2020/21 amounts to € 471.8 million, a decrease of 8.6 % compared to 2019/20 which was already affected by the first Covid wave (and on average 10 weeks closure for each park).

Accommodation turnover decreased with 11.9 % to €295.1 million. Important effects on the decrease are:

•	Additional Covid-19 effect (waves 2 and 3): park closure in Belgium (4-5 months) and Germany (6-7 months) and very limited activity possible in The Netherlands,
•	Compensated with increase of the average net letting rate of 10.4 % in 2020/21 compared to 2019/20.

Accommodation turnover decreased in all countries: the Netherlands (-4.4 %), Belgium (-4.5 %), and Germany (-24.6 %).

The decline in accommodation turnover of € 39.8 million was fully driven by German guests (184 %) offset by an increase in Dutch (82 %) and Belgian guests (24 %).

In 2020/21 direct sales (internet, call center, business-to-business and on-site sales) represented 87 % of accommodation turnover (2019/20: 87 %). The decrease in accommodation turnover originates for 46 % from internet sales.

Supplementary income decreased 26.2 % compared to 2019/20 mainly due to the village closures from November 2020 until May 2021 in Belgium and Germany. This decrease is steeper than the decrease in accommodation turnover because the parcs in the Netherlands could remain open, although with limited services and thus less supplementary income (restaurants, Aqua Mundo and other activities) during the reopening period.

Overall, the tourism activity decreased by 14.9 % compared to 2019/20.

For those villages that have been wholly (or partially) refurbished, significant improvement in turnover and operational results are realized in the period that they were not closed for Covid-19 reasons.

Turnover from property development activities has a more volatile nature, as the refurbishment activities can differ from one year to another. Consequently, turnover has increased with € 18.8 million compared to 2019/20. Reference is made to paragraph "Renovation projects" in this directors' report for an overview of the refurbishment projects in financial year 2020/21.

Accommodation turnover and occupancy rates by destination

By destination, 2020/21 accommodation turnover is specified as follows:

Accommodation turnover by destination

(in Million €)	2020/2021	2019/2020	Change
The Netherlands	136.2	142.4	-4.4 %
Belgium	65.5	68.6	-4.5 %
Germany	93.4	123.9	-24.6 %
Total	295.1	334.9	-11.9 %

Occupancy rates

The occupancy rate in below table takes into account compulsory closures due to government measures.

(in %)	2020/2021	2019/2020	Change
The Netherlands	59.2 %	59.5 %	-0.5 %
Belgium	39.2 %	52.5 %	-25.3 %
Germany	37.2 %	61.4 %	-39.4 %
Average	45.2 %	57.8 %	-21.8 %

A breakdown of the occupancy rates in the fourth quarter of the financial year shows the companies resilience and ability to overcome a health crises like Covid, while continuing to show growth compared to the same quarter in the previous year. Both Quarters, consisting of the months July, August and September operated under roughly the same circumstances without major influence of the pandemic.

(in %)	2020/2021 Q4	2019/2020 Q4	Change
The Netherlands	88.8 %	85.2 %	4.2 %
Belgium	87.9 %	75.3 %	16.7 %
Germany	94.4 %	86.1 %	9.7 %
Average	90.4 %	82.2 %	10.9 %

THE NETHERLANDS

Accommodation turnover decreased 4.4 % to € 136.2 million.

In a highly competitive market, average net letting rates increased 3.6 % to € 933 per week and the average occupancy rate decreased 0.5 %.

Due to the restrictions in relation to the Covid pandemic, an increase of 36 % is seen in Dutch guests over the full year, while guests from other countries significantly decreased (65 %). This trend is the same in the fourth quarter.

The share of direct sales was 85.7 %. The internet sales channel accounted for 66 % of Dutch turnover in 2020/21. The call center accounted for 14 % of turnover. The numbers show a year over year shift from call center to internet.

BELGIUM

The accommodation turnover decreased 4.5 % to € 65.5 million is mainly driven by a decrease in occupancy rate of 25.3 %, an increase in number of available nights (8.1 %) and an increase in the average net letting rate of 18.4 % to € 1,079 per week.

Similar to the trend in The Netherlands, the increase of the share of Belgian guests with (36 %) offset most of the decrease caused by guests originating from other countries (37 %).The fourth quarter shows even a stronger increase in the domestic guest in Belgium with 70 % increase.

The share of direct sales was 88.5 %. The internet sales channel accounted for 73.5 % of Belgian turnover in 2020/21. The call center accounted for 12 % of turnover.

GERMANY

Accommodation turnover decreased 24.6 % to € 93.4 million. The decrease in the German market is relatively high compared to the Belgian and Dutch market due to long closure of all the parcs in Germany (November 2020 until June 2021). The average net letting rate increased by 21.2 % to € 1,287 per week influenced by the high quality level of the Allgau village as well as premiumisation refurbishments in the Hochsauerland and Nordseekuste villages.

Although the German villages suffered from a decline in guest from all origins, the decline of German guests with 14 % was relatively low, compared to the decline in guests from other destinations (66 %). In the fourth quarter the domestic guests in Germany showed an increase of 38 %.

Direct sales accounted for 89.7 % of sales. The internet sales channel accounted for 72 % of German turnover in 2020/21. The call center accounted for 13 % of turnover.

Net result

A summarized version of the net result can be found in below table.

(in Million €)	2020/2021	2019/2020	Change
Net turnover	471.8	516.5	(44.7)
Other operating income	39.9	2.3	37.6
Total operating income	511.7	518.8	(7.1)
Total operating expenses	(534.1)	(565.6)	31.5
EBIT	(22.4)	(46.8)	24.4
Net financial income and expenses	(0.1)	0.8	(0.9)
Taxation on ordinary result	(5.6)	3.3	(8.9)
Minority interest	1.3	1.2	0.1
Net result	(26.8)	(41.5)	14.7

EBIT improved with € 24.4 million to € -22.4 million. The EBIT movement is explained by the following elements:

	EBIT 2019/20		-46.8
Total operating income	Tourism activity	-63.5		Further explained in paragraph "Key indicators" in this directors' report.
	Property development turnover	18.8		Increase caused by higher activity as explained in paragraph "Renovation projects" in this directors' report.
	Other income	37.6		Mainly caused by Governmental aids in Germany.
	Total movement		-7.1	-1 % compared to 2019/20.
Operating expense	Payroll expense	22.1		• Decrease due to temporary unemployment in Germany (€ 3.0 million) and Belgium (€ 7.6 million) and NOW subsidy (€ 12.8 million) in The Netherlands, • Number of FTE remained stable 3.046 (2019/20: 3.021)
	Depreciation	1.1		Result from investments done.
	External rent and other charges	27.9		• Predominantly explained by decrease of the property rent paid to the owners of the resorts. There are mainly two effects in this movement: decrease related to Covid-19 contract renegotiations with institutional investors and increased rent as a result of village renovation investments.
	Raw materials and consumables	3.6		Decreased in line with decrease in on-site sales.
	Other operating expenses	-23.3		• An increase in property development expense of € 20.6 million (linked to property development turnover). • An increase of € 10.1 million regarding management fees. Last year management fees where included as revenue. Due to the change-up, management fee structure changed. • Energy expense decrease of € 2.6 million. This is mainly caused by Covid-19 related park closures. • Other operating expense decrease of € 4.8 million
	Total movement		31.5	-6 % compared to 2019/20.
	EBIT 2020/21		-22.4

(Amounts in Million €)

Net financial income and expenses has decreased with € 0.9 million. The decrease is for the main part explained by interest payable on corporate income tax in Germany and paid interest and costs for banks, mitigated by increased interest income on affiliate accounts.

Taxation on ordinary result is a loss in 2020/21 and decreased € 8.9 million. The following scheme illustrates the quantitative impact of the main movements:

(in Million €)	2020/2021	2019/2020	Change
Tax charge at Dutch statutory tax rate	5.6	11.3	(5.7)
Differences in domestic tax rate	(0.3)	1.4	(1.7)
Transfer of village Ardennen	-	(1.1)	1.1
Non-deductible and non-taxable cost	(3.0)	(3.4)	0.4
Unrecognized deferred tax assets	(7.9)	(5.2)	(2.7)
Prior year adjustments	-	0.3	(0.3)
Tax charge	(5.6)	3.3	(8.9)

Minority interest stayed at the same level of last year and is mainly driven by the Belgian activities.

Simplified statement of financial position

(in Million €)	2020/2021	2019/2020	Change
Goodwill	9.3	16.8	(7.5)
Net fixed assets	112.1	119.1	(7.0)
WCR and others	(49.0)	(31.3)	(17.7)
Investments	72.4	104.6	(32.2)
Equity	44.5	72.7	(28.2)
Provisions	13.2	12.6	0.6
Long term liabilities	14.7	19.3	(4.6)
Resources	72.4	104.6	(32.2)

The decrease in goodwill relates to regular amortization. The decrease in net fixed assets is caused by investments (€ +16.3 million), regular depreciation (€ -17.2 million), decreased deferred tax asset (€ -1.1 million) and various other smaller effects (€ -1.3 million).

Working capital requirements and others decreased € 17.7 million. This change is explained by:

• Decrease of inventory	€ -4.7 million
• Decrease in prepaid expenses	€ -4.5 million
• Increase of the balance with affiliated companies	€ +94.2 million
• Increase of WCR due to trade debtors and creditors	€ +49.7 million
• Taxation	€ -4.1 million
• Increase of cash and cash equivalents	€ +26.1 million
• Increase in prepaid villa rent by customers	€ -22.1 million
• Increase of short term loan	€ -174.3 million
♦ Increase in other receivables	€ +26.2 million
♦ Increase in other liabilities	€ -3.6 million
♦ Other small elements	€ -0.6 million

Provisions increased € 0.6 million which is explained by:

•	Increase of the refurbishment provision of € 1.1 million,
•	Decrease of the reorganization provision of € 1.0 million,
•	Other small elements which contribute to an increase of € 0.5 million.

Long term liabilities have decreased by € 4.6 million. This is caused by financial lease of the furniture on park Allgau for € 3.1 million and for € 1.5 million on deferred income.

Key financial ratio's

Key financial ratio's	2020/2021	2019/2020	Change
Current ratio	0.89	0.89	-
Debt/equity ratio	10.86	4.36	6.50

The current ratio is a measure of liquidity of the Company. It indicates to which extent the current liabilities can be paid by the current assets. Typically a healthy current ratio is >1.

During 2019/20 the current ratio dropped below 1.0 as a result of the difficult year due to Covid-19 and given the second wave of Covid-19 in 2020/21 the ratio stayed stable compared to the prior year.

The debt/equity ratio indicates to which extent the Company uses debt to finance its activities, in relation to equity. The strong increase is caused by the decrease in equity (€ - 28.2 million) and the increase in debt which is mainly caused by the short term loan which was granted to the company (€ +174.3 million). As a consequence and mentioned above on page 3 the actions set in motion by the group for the equity strengthening transaction nevertheless justify to prepare the financial statements based on the going concern principle.

Risk Management

The Company has carried out a review of the risk factors that may have a significant negative impact on its activities, the profitability of these activities or its income. The Company has not identified any significant risks other than those presented below.

Risk appetite and impact

The Company's willingness to assume risks and uncertainties (the risk appetite) differs for each risk category. The level of the Company's risk appetite gives guidance as to whether the Company would take measures to control such uncertainties. The risk overview is included in the table below. The table shows the risk appetite and the expected impact on the group's achievement of its strategic, financial and operational objectives, if one or more of the main risks and uncertainties were to materialize. The likelihood of the risk taking place is also disclosed. The risks are shown net. This means that the risks are described after taking the risk response into consideration.

Risk Category	Risk Appetite	Impact	Likelihood
Market	Medium	Medium/High	Medium
Credit	Low	Low	Low
Seasonality	Low	Low	Medium
Rental commitment	Medium	High	Low
Health	Low	Medium	Medium
Social	Low	Low	Low
Reputational/brand image	Low	High	Medium
Climatic	Low	Medium	Low
Property development	Low	High	Medium
IT	Low	High	Low

Market risk

Market risk includes liquidity risk, interest rate risk and currency risk. In particular, the Company has carried out a specific review of its liquidity risk and considers that it is in the position to meet its future commitments.

The activities of the Company (tourism and real estate activities) are generally dependent on the economic situation, which, when negative, may have an impact on the Company's results. However, the Company's fundamental basis provides relevant means of resistance to economic and financial crises, beyond the independence of the cycles of the tourism and property markets on which the main activities of the Company are based.

As far as tourism is concerned, it has unique competitive advantages: on the one hand, it is based on a concept of proximity tourism for the benefit of a European clientele, which reduces the costs and risks inherent in the energy costs of transport, and on the other hand the diversity of products, in two main brands (Center Parcs and Sunparks) which are distributed in prominent destinations, and which are all year/all-weather destinations.

The main impact of the Covid-19 pandemic lies in the absence of income linked to the general closure or limited service offering of tourist sites operated by the Company during a period of confinement. In order to overcome this period of lack of tourist income, exceptional measures to reduce costs and preserve cash flow have been implemented: flexibility in personnel costs by enabling partial activity, adaptation of expenditure on sites, suspension of external rent during closed periods.

CPE NV was part of the groups New Financing and as a consequence bares an interest rate risk. For the Company this risk is limited on one hand because the New Financing is further transferred to the group and the Company makes a small margin on interest received versus interest paid. The payable interest in the New Financing is furthermore set and not changing for the duration of the financing.

The Group has secured an investment from a conglomerate of investors and has realised an equity strengthening transaction in 2022, as disclosed in the press release on March 10, 2022. With this new investment, the financial situation for the Group as a whole has improved severely resulting in a normalized debt/equity ratio with a normalized liquidity risk.

Credit risk

Because of the multiplicity and diversity of its customers the Company does not consider itself exposed to a concentration of customer risk. The risk of payment by customers is low because most of the accommodation turnover is realized through direct sales, a marketing method in which payment of the service is made prior to consumption. As for the indirect sales, to reduce the risk that the failure of a debtor or the occurrence of an adverse event could have on the collection by the Company of its receivables, the Company's policy is to:

•	Maintain a diversified portfolio of tour operators and travel agencies,
•	Work only with major players in the market, and
•	Use solid legal contracts and check the creditworthiness of counterparties.

Seasonality of tourist activity

The Tourism sector in Europe is seasonal with significant variations in activities depending on the periods (school holidays) and on the destinations (higher activity in the mountains in winter and on the coast in summer).

The Company's tourism business is organized around two seasons: a winter season (from November to April) and a summer season (from May to October), with a predominant weight of the summer period. This seasonality leads structurally to a loss in the first half of the year.

A lower marketing of stays during the high season and the high season could affect the Company's result. In addition, the Company may find it difficult to recruit seasonal staff depending on the destination, which could affect the customer promise and the quality of services.

Risk control and mitigation

The Company strives to reduce the seasonality of its activities by:

•	strengthening sales abroad (partnerships with foreign tour operators, development of partner residence marketing contracts),
•	boosting sales of stays outside school holidays (short stay offers for private individuals and professional seminars),
•	the development of the flexibilization of the durations of stays and the dates of arrivals and departures,
•	a pricing adapted to the different periods with strong amplitudes between high and low seasons, and
•	targeted promotional campaigns.

Risk related to rental commitments

Since the Company's strategy is not to mobilize its own funds on the villages it operates, it sells these assets to private or institutional investors. These sales are accompanied by the signing between the new owners of the property and the Company's operating companies of a lease with a duration of (typically) 15 years, with the option of renewal. The rents are either fixed or variable and indexed corresponding to the inflation or the reference index of the country in which the villages are located.

Health Risk

The Company's priority is the health of its customers, employees and suppliers while ensuring as much as possible the continuity of its operations. As a consequence of the Covid-19 outbreak the company took precautions and implemented and adapted rules based on recommendations from the official health institutions, such as the World Health Organization and the RIVM in the Netherlands as well as governmental crisis committees. Health measures were taken on site and at headquarters, digital and organizational solutions have been implemented and have been scaled up and down if and when applicable. Thus we strive to minimize health risks for our employees, customers and suppliers.

Social risks

The Company - because of its service activity - has many employees both at headquarters and on its tourist sites. The Company's Human Resources Department, under the direction of a member of the PV SA General Management Committee, ensures that the legal rules in force, both individually and collectively, are respected with a view to ensuring the long-term future of employment adapted to structural change of activity. The number of disputes in employment law remains low.

Reputational risks

These risks can be considered significant in the field of tourism but also in the field of real estate marketing and the development of new projects.

Reputational risk is becoming increasingly important given the changing regulatory environment (eg due diligence, increased regulation of environmental preservation) and society's expectations large. For the Company, risk factors are mainly related to customer and employee safety, customer satisfaction with product quality and service delivery, ethics and social, societal and environmental responsibility.

Potential effects on the Company:

•	Effects on reservations related to the Company's reputation and image on social networks, in particular,
•	Effects on loyalty to Leasing Owners and Investors,
•	Effects on local acceptability of projects under development that may hinder the obtaining of building and operating licenses.

Risk control and mitigation

The quality of the relationship with stakeholders (customers, owners, partners, suppliers) is a key element in controlling these risks.

The measures put in place by the Company mainly concern:

•	The management and analysis of customer satisfaction (tourism and landlords) and the management policy of the Company's reputation on social networks,
•	The establishment of a specific organization to ensure the treatment of any situation likely to endanger its staff, its customers, its interests and/or its reputation,
•	The policy of local consultation in the context of new developments and involvement in local economic and social life (tourism partnerships, local jobs),
•	The policy of respect for ethics with the establishment of a code of conduct and an alert system (chapter "ethical and responsible practices"),

Climatic risks

The risks related to climate change are twofold:

•	physical risks resulting from damage directly caused by weather and climate phenomena (operating risks, risks of material damage),
•	transitional risks resulting from the effects of the implementation of a low-carbon economic model (regulatory, fiscal, legal and market risks related to the change in demand).

Real estate and tourism are among the sectors recognized to be particularly exposed to the risks associated with climate change. The Company's activities are impacted by changes in weather conditions, weather over the short, medium and long term.

Potential effects on the Company:

•	Consequences on the conditions of stay, customer satisfaction and demand: summer comfort, snow condition, presence of harmful species that can affect the quality of the stay,
•	Strengthening regulations and environmental taxation: regulations on the energy performance of buildings, carbon tax,
•	Consequences on the conditions and operating costs of the sites: increase in the price of energy, rationing or increase of the price of water for the destinations situated in zones of water stress,
•	Material consequences linked to extreme events: the great diversity of locations of exploitation sites makes it possible to reduce the potential impacts of extreme weather events or natural disasters.

Risk control and mitigation

Climate risk and the Company's contribution to global warming is one of the major material issues mainly addressed in PV SA's CSR policy.

The measures taken to control and mitigate this risk are:

•	Control of energy and water consumption via a roadmap with quantified objectives,
•	Bioclimatic design of new developments, anticipation of regulations,
•	Anticipation of medium and long-term effects through: carbon footprint studies, mapping of the share of activity subject to medium or high water stress to allow targeted action plans, ongoing study on the Company's resilience in relation to the consequences of global warming.

Risks linked to property development activity

Risk related to construction defects

Construction-sale companies that develop real estate projects subscribe to the usual insurance policies intended to cover the construction risk (civil liability promoter, civil engineering if applicable, structural damage) and / or require their subcontractors to intervene on the programs underwriting these policies. Franchises or exclusions of warrantee are in accordance with the uses.

Property risk of real estate assets

The Company's policy is to start the work only after the sales of a very significant portion of the real estate programs. The legal risk associated with the ownership of the assets under management is therefore not incumbent on it, in practice, but is incumbent upon the co-owners who are natural or legal persons in the context of the management of the co-ownership, subject to the provisions of the leases entered into with the Company, which may stipulate, for example, the assumption of certain types of co-ownership charges by the operator of the Company. This is particularly the case with the long-term institutional leases entered into by the Company.

Risk of cost overruns

Development projects are typically complex and as such the Company might be faced with the risk of budget overruns. The Company has an experienced development department that is involved in the early stage of development projects, applying its expertise to ensure that development contracts are engaged at a realistic price. The execution of development projects is coordinated by the construction department. Project reports are created periodically, allowing the construction department to monitor the progress of projects. Within the agreed project mandate the construction department can make alternative choices in order to compensate for potential budget overruns.

With an increasing number of development projects in progress, and a risk appetite which is low, the Company needs to be agile in respect to its internal controls. Therefore the Company has in place:

•	a dedicated monthly review process for projects, to which several members of the Management board and Supervisory board participate,
•	a dedicated project controlling organization, which is segregated from the construction and development departments,
•	a change management procedure, to ensure that changes are formalized timely and validated by the appropriate stakeholders.

IT risks

Increased competition from digital platforms

In recent years, the Airbnb or HomeAway booking platforms have developed their accommodation offering in major cities. This important development of a complementary accommodation offer, from entry-level to high-end, offering houses and apartments, coupled with a range of services (leisure services, concierge) are likely to strengthen the competitive environment in which the Company operates.

The development of competition from these platforms could affect the occupancy rate of the Company's tourist sites and / or maintain a tension on prices.

Risk control and mitigation

The Company generates more than 60 % of its revenue on the Web, via its own platforms, but also those from its commercial partners. In particular, this can attract new customers from geographical areas where the Company's commercial presence is insufficient, develop new emerging markets or expand the use of seasonal wings at tourist sites managed by the Company.

The platforms for connecting individuals (Airbnb type, Abritel), also contribute to developing the reputation of the holiday rental, which can benefit the Company.

In recent years, the Company has also invested significantly in redesigning its websites (new technologies, improving the customer experience on its distribution channels, developing additional service sales) and enriching its offer (quantitatively and qualitatively) to consolidate its position and attract new customers.

Cyber-attack

For several years, the Company has undergone a profound digital transformation, started by the online reservation system for its various brands, which is continuing and resulting in greater exposure to the risks associated with cyber-attacks as well as those resulting from computer system malfunctions, networks and telecommunications.

These systems condition the execution, processing, transmission and storage of data relating to the Company's accounting and financial operations and data. They also handle communication with customers, suppliers and Company staff.

In addition, the new regulations in particular concerning the protection of personal data (GDPR) require rapid adaptation to alleviate any risk of non-compliance.

The potential impacts that would result from a cyberattack and its effects depend on the type of attack:

•	Loss or theft of personal, confidential data and the resulting chain repercussions,
•	Failure of the main operational systems,
•	Impossibility of carrying out daily operations,

Faced with growing threats in the field of cybercrime, the Company devotes significant effort in the maintenance and protection of its information systems.

Any significant breakdown or interruption of the information system or the loss of sensitive data could affect the Company's normal business, in particular the Tourism business, and have financial, operational or image consequences.

Risk control and mitigation

A formalized Critical Incident Processing Process is in place within the Information Systems Branch. The Company has a "Disaster Recovery Plan", regularly formalized and tested, designed to allow the restart of applications identified as critical, within an acceptable time, in the event of a major problem affecting the systems.

Fraud

The Company is exposed to the risk of fraud, due to the acceleration of its digitalization, its presence in several countries, and the rapid development of new forms of potential threats, international networks of hackers including, viruses, and others.

Fraud or theft could result in a financial loss, or the loss of confidential data. A major fraud could harm the Company's reputation if it was the subject of negative comments in social networks or the media.

Risk control and mitigation

The Company has raised awareness among teams exposed to the risk of fraud and has strengthened its control system. The Company has an experienced "communication and crisis" team.

Supervisory Board, Board of Management and Employees

Report Supervisory Board

During the financial year 2020/21 nine Supervisory Board meetings were held by Teams video conference. Most of them - seven meetings - were extra planned Supervisory Board meetings in which the Supervisory Board was informed by both the CEO of PV SA and the Board of Management of Center Parcs Europe NV about the status of the conciliation procedure of PV SA, the financing arrangements of PV SA/Center Parcs Europe NV and (other) important operational and commercial developments related to the Covid-19 Crises.

Regarding the financing arrangements of Center Parcs Europe NV, the Supervisory Board has taken the required resolutions.

These seven extra meetings took place on 4 February 2021, 25 February 2021, 10 March 2021, 25 March 2021, 7 May 2021, 28 May 2021, and 25 June 2021.

Two regular Supervisory Board meetings were held on 18 December 2020 and 16 April 2021.

In addition to the usual topics - like operational performance, quality, financial results/budgets/developments, audits and risk management, the Board of Management presented during these meetings the following important topics to the Supervisory Board:

•	Recruitment procedure and appointment of the new CEO of Center Parcs Europe NV.
•	Board structure / composition Executive Board.
•	Strategy Plan Re-invention.
•	Development projects in Denmark, Belgium and Germany.

It speaks for itself that - due to the Covid-19 crises - Center Parcs Europe NV has been confronted during a major part of this Financial Year with an extremely negative economic environment. The Board of Management has been in contact with the members of the Supervisory Board on a regular basis in order to inform and update them on the impact and consequences of this crises on the financial performance of the company.

As in the previous years, Mr. J.A. van Gijzen has met periodically - due to Covid-19 not in person but via Teams video conference - the Daily Board of the Dutch Central Works Council. The Secretary of the Supervisory Board was also present during these meetings. Various important subjects such as the board structure and (financial) consequences of the Covid-19 crises were discussed during these meetings.

Composition Supervisory Board

Mr. F. Gervais has been appointed as member of the Supervisory Board as per 31 May 2021. Mr. F. Gervais fulfilled the vacant position of Mr. Y. Caillère who resigned as member of the Supervisory Board as per 1 September 2020.

As per 31 May 2021 the composition of the Supervisory Board is as follows:

•	Mr. M. Haak Wegmann (Chairman),
•	Mr. J.A. van Gijzen,
•	Mr. F. Gervais.

Composition Board of Management

Mr. Y.Y.T.L. Caillère has resigned as (interim) CEO on 14 January 2021. At the same date Mr. F. Gervais was appointed as (interim) CEO and resigned on May 31, 2021.

On May 31, 2021 the articles of association were adapted to support the extension of the board from 1 to three members. As per that date, the composition of the board is as follows:

•	CP Holding SAS,
•	Mr. M.T.W. Berghuis,
•	Mr. J.H. Schöningh.

On June 3, 2021 Mr. O.P. Garaïalde was granted a full power of attorney to represent the company.

Corporate Governance

The Board of Management and Supervisory Board strive for a balanced governance structure where appropriate. This includes a well-balanced composition of genders in the Board of Management and Supervisory Board with an aim to have the percentage of men on both boards below 60 %. The Company at this moment does not comply to this ratio. The limited number of board members implies that changes to both the Board of Management and the Supervisory Board are relatively infrequent. When a position becomes vacant the gender composition will be taken into account considering equal qualifications of the candidates.

Number of employees

The average number of employees (FTE) during the year is 3,046 (2019/20 3,019).

Outlook

Tourism activity expected for the financial year 2021/22 and beyond

During the first two months of Q1 2021/22 the tourism activity was still booming with the same dynamism as the summer of 2021. In the last month of Q1 2021/22 the Covid-19 pandemic entered the fourth wave which has led the various European governments to take new restrictive measures during December 2021. The villages remained open, but with a reduced offer, especially in the Netherlands (only takeaway and delivery of meals and bicycles available for rent).

Currently governments are releasing restrictions, which immediately shows in an increased booking level for the remainder of 2021/22. The outlook for financial year 2021/22 is still promising with a limited impact coming from the last episode of the pandemic.

The Group has secured an investment from a conglomerate of investors (the equity strengthening transaction) as disclosed in the press release on March 10, 2022. With this new investment, the financial situation for the Group as a whole has improved severely resulting in a normalized debt/equity ratio. Further strength can be found in the ability of the company to rebounce from Covid restrictions, as was seen in the very strong last quarter of 2020/21. As a result the Company's fundamentals remain strong. This should allow for quick recovery and to return to the trajectory of the Reinvention.

The invasion of Ukraine by Russia has a consequence of rising prices, for example on energy, which might have an effect on the pares. However, it is expected that such price increases will be compensated by higher revenues, which are in turn a consequence of the premiumisation process that has started with Reinvention 25.

Property Development activity expected for the financial year 2021/22 and beyond

The renovation works on village Eemhof are in the final stages, all main elements of the refurbishment project have been finalized, Currently there is a 'completion round' ongoing that is expected to be finalized in the first semester of financial year 2022/23.

The renovation works for the Aroundtown portfolio villages (Kempervennen, Huttenheugte, Meerdal, Vossemeren and Bispingen) is in process during the financial year 2021/22 and the main elements for the last village are expected to be finalized in the first semester of financial year 2022/23.

The personnel formation is expected to remain stable during 2021/22.

Capelle aan den IJssel, May 31, 2022

Board of Management

CP Holding SAS

Mr. O.P. Garaïalde

Mr. M.T.W. Berghuis

Mr.J.H. Schöningh

FINANCIAL STATEMENTS 2020/21

2 | CONSOLIDATED BALANCE SHEET

(After proposed appropriation of the result for the year)

(in €1,000)	Note	September 30, 2021		September 30, 2020
FIXED ASSETS
Intangible fixed assets	3
Goodwill		9,270		16,833
Other		1,359		1,789
			10,629		18,622
Tangible fixed assets	4
Land, buildings & improvements		34,154		26,488
Machinery and installations		35,864		42,574
Furniture and equipment		24,760		29,559
Construction in progress		3,228		1,169
			98,006		99,790
Financial fixed assets	5
Deferred tax asset		6,600		11,355
Participations		47		47
Loans to participations		2,277		2,322
Deferred cost		2,219		681
Security deposits		361		362
Other		1,218		2,718
			12,722		17,485
TOTAL FIXED ASSETS			121,357		135,897
CURRENT ASSETS
Inventory
Finished products		3,492		4,397
Work in progress	6	11,362		15,195
			14,854		19,592
Debtors	7
Trade debtors		16,964		13,484
Amounts due from affiliated
companies		250,227		144,654
Other receivables		43,803		17,629
Prepaid expenses		27,879		32,385
			338,873		208,152
Cash and cash equivalents	8		52,966		26,819
TOTAL CURRENT ASSETS			406,693		254,563
TOTAL ASSETS			528,050		390,460

(in €1,000)	Note	September 30, 2021		September 30, 2020
GROUP EQUITY
Shareholders equity	31	49,148		76,184
Minority interest		(4,615)		(3,454)
			44,533		72,730
PROVISIONS
Employee benefits liabilities	10	4,588		4,084
Reorganisation	11	238		1,200
Refurbishment	11	4,955		3,891
Dilapidation	11	2,148		2,036
Litigation	11	1,286		1,401
			13,215		12,612
LONG-TERM LIABILITIES	9
Financing of lease agreements		5,561		8,712
Deferred income		9,167		10,631
			14,728		19,343
CURRENT LIABILITIES
Prepaid villa rentals		107,550		85,451
Trade creditors		10,303		56,517
Amounts due to affiliated companies		22,972		11,618
Short term position of long term loan	12	174,343		-
Current portion of financing of lease agreements	9	3,294		3,074
Taxation and social security		24,242		20,181
Pension payable		1,055		756
Other liabilities	13	111,815		108,178
			455,574		285,775
TOTAL EQUITY AND LIABILITIES			528,050		390,460

3 | CONSOLIDATED STATEMENT OF PROFIT & LOSS AND OTHER COMPREHENSIVE INCOME

(in €1,000)	Note	September 30, 2021		September 30, 2020
Net turnover	17	471,845		516,524
Other operating income	18	39,868		2,287
Total operating income			511,713		518,811
Raw materials and consumables		12,489		16,127
External rent and other charges	19	157,424		185,348
Wages and salaries	20	81,707		102,896
Social security charges and pension expenses	20	21,560		22,472
Amortization intangible fixed assets		8,153		8,148
Depreciation tangible fixed assets		17,204		18,337
Other operating expenses	21	235,525		212,291
Total operating expenses			534,062		565,619
Earnings before interest and taxes			(22,349)		(46,808)
Net financial income and expenses	22		(73)		828
Result before taxation			(22,422)		(45,980)
Taxation on ordinary result	23		(5,639)		3,300
Group net result			(28,061)		(42,680)
- of which profit / (loss) attributable to the shareholder of Center Parcs Europe NV		(26,910)		(41,517)
- of which profit / (loss) attributable to minority shareholders		(1,151)		(1,163)
Other comprehensive income			(126)		(404)
TOTAL COMPREHENSIVE INCOME			(28,187)		(43,084)

4 | ACCOUNTING POLICIES

Note 1 - General

Center Parcs Europe N.V.'s ("the Company") official seat is in Capelle aan den IJssel. It is registered at the Chamber of Commerce under nr. 34136068.

The principal business activity of the Company and its subsidiaries is the operation of holiday villages in Europe. The Company is a wholly owned subsidiary of CP Holding SAS, and ultimately owned by Pierre et Vacances SA, a listed company on the Paris stock exchange, which includes the Company and its subsidiaries in its consolidated financial statements.

Unless stated otherwise, amounts are expressed in thousands of €.

Note 2 - Accounting policies

General

The Consolidated Financial Statements have been prepared under the historical cost convention, being the values at which they were acquired or lower realizable value and in accordance with the provisions of Part 9, Book 2 of the Dutch Civil Code. As permitted by section 402, Book 2 of the Dutch Civil Code, a condensed income statement has been presented for the Company itself. The financial statements were prepared on May 31, 2022.

Since the Company is ultimately wholly owned by PV SA and this company publishes its financial statements including a statement of cash flows, the financial statements of this Company do not include a cash flow statement. The financial statements of PV SA can be found online:

www.groupepvcp.com/en/90/finance/publications/financial_reports.

The Covid-19 pandemic has a severe impact on the results and the financial position of the Pierre et Vacances Group and the Company (CPE NV). To overcome this situation a group restructuring process was set-up in two-steps:

•	provision of New Financing during the 2020/21 financial year predominantly via the Company,
•	implementation of a capital strengthening transaction for the Group.

This restructuring process allows the group to continue its business plan 'Reinvention 2025'.

New Financing

On May 10, 2021 PV SA accepted a binding financing offer from a conglomerate of existing financing partners for a maximum aggregate amount of € 300 million (New Money Financing) following a competitive process open to third party lenders.

The first tranche of € 175 million was made available to the company (CP) on June 24, 2021. The second tranche of € 125 million was made available to the company (€ 90.5 million) and Pierre Vacances SA (€ 34.5 million) on December 1, 2021. The Company provided the PVCP Group with financing amounting to € 150 million per end of September 2021 and € 240.5 million per now.

The financing facility has a maturity of 15 months and can be extended at request by the Company with 12 to 24 months on the condition that at PVCP Group level at least € 10 million cash is available. Currently the facility matures in September 2022. The Company is fully dependent on the PV Group repaying its intercompany debt to the Company, before the Company is able to repay the financing facility. The Group is subsequently dependent on the successful equity strengthening transaction before being able to repay its debt to the Company.

One of the conditions to the New Financing is that an equity strengthening transaction process is entered into at the level of PVCP Group.

Equity Strengthening Transaction PVCP Group

On March 10, 2022 the group closed such a transaction with three major investors:

•	(i) Alcentra Limited (also a financial creditor of the Group),
•	(ii) Fidera Limited (also a financial creditor of the Group), and
•	(iii) Atream (also an institutional landlord of the Group) (together the "Investors").

The transaction includes:

•	injection of equity of € 200 million to strengthen the balance position of the group,
•	conversion of € 551 million of groups unsecured debt into equity,
•	partial reinstatement of New Financing by setting up a senior term loan of € 174 million to the benefit of the Company,
•	implementation of new governance structure,
•	outsourcing of the real estate business.

The completion of the equity strengthening transaction (for PVCP Group) is subject to certain conditions precedent. It should be completed no later than September 16, 2022 unless specifically extended. In its press releases of April 22, 2022 and May 25, 2022 the PVCP group confirmed the progress in the equity strengthening process and September 16, 2022 remains the target date for completion of the restructuring transaction. Therefore the Company is confident the equity strengthening process will be successfully completed.

Reinvention 2025

On January 29, 2020, PVCP Group, the companies ultimate parent, presented its strategic plan until 2024, Change Up, with the aim of accelerating and strengthening the Group's transformation, in order to ensure its sustainable profitability. In 2020/21 Change up has been further executed and meanwhile the group entered in a new phase of strategic planning: Reinvention '25.

Reinvention 2025 was announced on May 18, 2021 PV SA. Accelerated by the Covid-19 pandemic, the transformation of the tourism industry will be spearheaded by the group in its pioneer role by a performance and value-creating strategic plan based on a new vision of reinvented local tourism to boost performance further than under change-up:

•	A radical modernisation and premiumisation across the Group,
•	A switch to offers that are 100 % experience-based, personalised and service-focused,
•	Ambitious and responsible property development serving the customer experience.

At the moment, there is no further impact expected from Covid-19 pandemic, considering that the general approach of this health crisis is expected to change from a pandemic to an endemic, which is therefore not expected to impact the operations of the Company in a significant way.

In this context, the consolidated financial statements of the CPE NV for the financial year ended 30 September 2021 were prepared in accordance with the going concern principle, taking into account the position known at the reporting date of the financial statements as described above, binding agreements entered into with the various partners, the latest estimates of cash requirements made in a context of economic recovery and assuming that the conditions precedent would be finalised during the financial year allowing the transaction to strengthen the Group's equity to proceed.

Judgments, estimates and assumptions

The Group based its assumptions and estimates on circumstances and information available when the consolidated financial statements were prepared. Assumptions about future developments (or future developments that do not occur) may change due to market changes or circumstances arising that are beyond the control of the Group. These changes in estimates will be accounted for prospectively. The key estimates and assumptions, are described below.

Pension provision

A pension provision has been formed for future back service pension liabilities. The provision is calculated using an actuarial method, i.e. the Projected Unit Credit Method. The actuarial base for determining future back service pension commitments is discount rate, expected remaining service years of employees and mortality table.

The key assumption is the discount rate. The discount rate reflects the market interest rate for high-quality corporate bonds in euros and has been extrapolated to the term of the pension provision. The mortality table is based on the public tables as made available by the Dutch Actuarial Society. For more information with regard to the assumptions and estimates in determining the pension provision, reference should be made to the notes to provisions.

German Grants

Key assumption on the German Grants recognition is based on the initial application of the Grants (November Hilfe, Dezember Hilfe and Überbrückungshilfe III) as prepared by KPMG Germany and their subsequent status update as shared with the management of the company. Risks identified in this status update have been assessed and if needed not considered in the recognition of the grants. Furthermore the key assumption is that the initial applications have been assessed by the German Government and they have granted the full amounts applied.

Deferred tax assets

Deferred tax assets are carried on the basis of the tax consequences of the realization or settlement of assets, provisions, liabilities or accruals and deferred income as planned by the group at the balance sheet date. A deferred tax asset is recognized to the extent that it is probable that future taxable profit will be available for set-off.

In this assessment, the group includes the availability of deferred tax liabilities set-off, the possibility of planning of fiscal results and the level of future taxable profits in combination with the time and/or period in which the deferred tax assets are realized.

The group also holds deferred tax assets in jurisdictions where losses were made in the past and that are not recognized. The group considers it probable that the future taxable profits will be insufficient in the remaining available period, taking into account possible tax planning. These taxable losses may not be used to set-off profits elsewhere in the group and cannot be set-off with deferred tax liabilities.

Reference is made to the notes to financial fixed assets for more information regarding the assumptions and estimates used in determining the amount of the deferred tax assets.

Going Concern assessment

The going concern assessment enables management to determine whether or not the company can continue in the 12 months following the signing of the annual accounts. Key assumptions taken into account in this assessment are the New Financing and Equity Strengthening Transaction and its foreseen full completion before the end of next financial year 2021/22, the year-to-date results for FY2021/22, the EBIT forecast for financial year 2021/22 and the cash flow forecast for the business line.

Consolidation

All group companies in which Center Parcs Europe N.V. has a direct or indirect majority interest are fully consolidated. These companies form the Center Parcs Europe Group. Intercompany transactions and balances are eliminated on consolidation. A list of all subsidiaries included in the consolidation is included in the notes to the parent company accounts.

Minority interests in equity and result are stated separately.

Restatement figures previous year

Where needed to improve comparability of financial statements, figures of previous year have been restated. No impact on equity or results was involved.

Foreign currencies

Transactions in foreign currency are converted against transaction prices. If transactions have not been completed at balance sheet date, for monetary positions the assets and liabilities are converted against the rate at balance sheet date. Gains and losses as a result thereof are stated in the result.

Offsetting

Assets and liabilities are only offset in the financial statements if and to the extent that an enforceable legal right exists to offset the assets and liabilities and settle them simultaneously and the firm intention is to settle the assets and liabilities on a net basis or simultaneously.

Financial instruments

Financial instruments include both primary financial instruments, such as receivables, securities and payables.

All purchases and sales of financial assets made according to standard market conventions are recognized as at the transaction date, being the date on which the group enters into a binding agreement.

For the accounting policies applicable to primary financial instruments, please refer to the treatment of individual balance sheet items.

Intangible fixed assets

Intangible fixed assets include goodwill, software and brand name. Goodwill represents goodwill from acquisitions, being the excess of the direct acquisition price paid and indirect consideration payable over their net asset value at acquisition date, remeasured at fair value. Intangible fixed assets are stated at cost less accumulated amortization and impairment. Amortization is calculated on a straight- line basis over the estimated useful life, which is considered to be the period during which the Company expects to benefit from the acquisition. Goodwill and other intangible assets are reviewed for impairment if events or changes in circumstances indicate that the carrying value may be impaired. Goodwill is amortized over 20 years, software over 5 years and the brand name over 10 years.

The Company assessed economic lifetime of goodwill at capitalization date and at year-end. It concluded that an economic lifetime of 20 years is still valid, because of the industry the Company is in.

Tangible fixed assets

Tangible fixed assets are stated at historical cost, less allowance for depreciation (excluding land) on the straight-line basis over the expected economic lives or, if applicable, the lower net realizable value.

In case of external costs, construction in progress is valued at invoiced amounts. In case of work performed by own employees, time spent is valued at labor cost.

If repair and/or maintenance costs increase the economic lifetime of the tangible fixed assets, those costs are capitalized in the respective category of the fixed assets, otherwise those costs are charged to the profit & loss account in the year they occur.

Financial fixed assets

Investments in subsidiary companies Investments in subsidiary companies are consolidated and in the parent company financial statements accounted for at net asset value. The share of the Company in the subsidiary's result is consolidated by the Company.

Participations

Participations in which the Company has no significant influence are valued at cost, less a provision for impairment if deemed necessary.

Deferred tax assets

Temporary differences existing at the close of each financial year between the book values of the asset and liability items and the values given to these same items for determining taxable income generate the booking of deferred taxes calculated according to the liability method. Unrealized tax payables and receivables are valued without the discount effect. Temporary differences and losses carried forward will apply on the probable date or reversal of the differences concerned at tax rates approved on the date the accounts are closed. The effects of tax rate changes are recorded in income in the year of the rate change.

Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Deferred tax assets and liabilities are offset when they relate to one and the same fiscal unity in the foreseeable future.

Loans to participations

Loans are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans are measured at amortized cost using the effective interest method, less any impairment losses.

Inventories of finished products and work in progress

Inventories mainly include the inventories of finished goods, which are sold as part of the Company's Tourism business, and work in progress for the property development business.

Inventories of finished goods and work in progress are valued at the lower of their purchase price or production costs, and their probable net realizable amount. If the realizable amount of the inventories (price net of selling expenses) is less than their carrying amount, a provision for impairment loss is recorded accordingly. The Company applies the weighted average method for its inventory costing.

The Company applies the percentage of completion method to report the revenue and margins of its property development business. Except for the marketing costs that are reported at the moment when they are incurred as expenses, all direct costs for ongoing property development programs are capitalized in inventories, including any related financial expenses (net of any financial income) that may be attributable to operations. When the work is completed, committed expenditures that are not yet invoiced are recognized in profit & loss statement.

Cash and cash equivalents

Cash and cash equivalents comprise cash at banks and in hand. Bank overdrafts are included in current liabilities. Cash and cash equivalents are measured at nominal value. All cash is readily available to the company unless otherwise disclosed in the notes

Long-term liabilities

Repayments of long-term liabilities, which are due within one year from the balance sheet date, are included under current liabilities.

Employee benefits liabilities

The Company operates multiple pension schemes: defined benefit schemes and defined contribution schemes.

Defined contribution schemes

Contributions for defined contribution schemes are accounted for in the period these contributions are due.

Defined benefit schemes

The Company applies recognition and disclosure provisions of IAS 19 Revised (Employee benefits) as permitted by accounting principles generally accepted in the Netherlands (RJ 271).

The defined benefit liability is the aggregate of the following items:

•	The present value of the defined benefit obligation on balance sheet date, plus or minus
•	The fair value of plan assets out of which the obligations are to be settled directly.

Actuarial gains and losses are recognized as Other Comprehensive Income. Past service costs, curtailments and settlements are recognized in the consolidated profit and loss account.

The cost of providing benefits under the defined benefit schemes is determined separately for each scheme using the "projected unit credit actuarial valuation method".

The defined benefit schemes at the Company have a historic nature. These schemes have been 'frozen' going forward, since the Company changed to defined contribution schemes as per 1 January 2018 for the Dutch companies.

Industry wide pension fund

In the Netherlands the Company participates in a defined benefit scheme with the Dutch Leisure Pension Fund (SPR), which is accounted for by the Company as a defined contribution scheme. Insufficient information is available for a defined benefit treatment of this scheme. There is no financial risk to the individual organizations for individual entitlements due on dismissal or retirement. Pension entitlements comply with article 7a of the Pension and Savings Funds Act and are funded in proportion to the length of service. The Company is only obliged to pay the contribution specified for that year. This multiemployer union plan covers approximately 18.500 contributing participants. The plan monitors its risk on a global basis, not by company or employee, and is subject to regulation by De Nederlandsche Bank, the supervisor on pension funds in the Netherlands. By law (the Dutch Pension Act), a multi-employer union plan must be monitored against specific criteria, including the policy coverage of the plan's assets to its obligations This policy coverage ratio must exceed 104.6 % for the total plan and is calculated as the 12 month average of the coverage ratio. The coverage ratio is calculated by dividing the fund's capital by the total sum of pension liabilities and is based on actual market interest.

The fund as per 30 September 2021 had a policy coverage ratio of 100.1 %.

Every company participating in a Dutch multi-employer union plan contributes a premium calculated as a percentage of its total pensionable salaries, with each company subject to the same percentage contribution rate. The premium can fluctuate yearly based on the coverage ratio of the multi-employer plan. The pension rights of each employee are based upon the employee's average salary during employment. The premiums paid to the fund are expensed to the profit and loss account.

Jubilee benefits

Jubilee benefits are accounted for using the "projected unit credit method". Actuarial gains and/or losses are directly recognized in the profit and loss account.

Provision for refurbishment

To take into account the contractual obligation with certain owners to replace certain furniture items a provision is built up based on the discounted project costs, using the straight line method. Changes in estimates (costs, timing, discount rate) are recognized in the profit and loss accounts.

Provision for dilapidation

To take into account the contractual obligation to maintain leased property, a provision is built up based on the discounted projected costs using the straight line method over the maintenance cycles. Changes in estimates (costs, timing, discount rate) are recognized in the profit and loss accounts.

Provision for litigation

The provision for litigation is stated at nominal value and is included when a reliable estimation can be made and when a cash out flow is probable.

Borrowings and financial liabilities

All loans are initially recorded at the cost which reflects the fair value of the amount received net of the costs for setting up the loan. Thereafter, these loans are recorded at amortised cost using the effective interest rate method and the difference between the cost and the repayment amount is recognised in profit (loss) over the term of the loans.

The effective interest rate is the rate used to obtain the carrying amount of a loan at the outset by discounting the future cash payments and receipts over the life of the loan. The carrying amount of the loan at the outset includes the transaction costs and any associated premiums.

Other assets and liabilities

Other assets and liabilities are stated at nominal value unless indicated otherwise. Debtors are stated net of an allowance for doubtful debtors.

Leasing

Assessing whether an agreement contains a lease is based on the substance at the inception date of the agreement. The agreement is regarded as a lease if the fulfillment of the agreement depends on the use of a specific asset, or on whether the lease contains the right of use of a specific asset.

Under finance leases (where all or part of the risks and rewards of ownership of the lease is transferred to the lessee), at the inception of the lease, the leased asset and related liability are carried at the fair value of the leased asset at the inception of the lease or at the present value of the minimum lease payments, whichever is lower. The leased asset is initially recognized including the initial direct costs incurred by the lessee. Lease payments are apportioned between the interest expense and repayment of the remaining balance of the liability, with the remaining balance of the net liability bearing a constant rate of interest.

The capitalized leased asset is depreciated over the shorter of the term of the lease and the useful economic life of the property, if there is no reasonable certainty as to whether ownership of the property is transferred to the lessee at the end of the term of the lease.

Under operating leases, the lease payments are charged to the profit and loss account on a straight-line basis over the term of the lease.

Operating income

Turnover

With regard to its Tourism activity net turnover is the total of rents and the proceeds from goods and services sold, less value added tax and sales discounts. The turnover is realized upon delivery of the goods and services.

With regard to development activities net turnover is based on the percentage of completion (PoC) method.

Depending on the nature of the contract, which is assessed on a project-by-project basis, the Company determines whether it should realize the full turnover (acting as principal), or a net compensation (acting as agent).

Other operating income

Operating income includes non-recurring proceeds from goods and services sold, less value added tax and sales discounts. It is realized upon delivery of the goods and services.

Expenses

General

Expenses are determined with due observance of the aforementioned accounting policies and allocated to the financial year to which they relate. Foreseeable and other obligations as well as potential losses arising before the financial year-end are recognized if they are known before the financial statements are prepared and provided all other conditions for forming provisions are met.

External Rent and other charges

In line with the guidance from the Dutch Accounting Standards Board, Statement 2020-12, discounts on external rent received by the Company have been applied in the period to which the discount has been granted.

Personnel

Wages, salaries and social security charges are recognized in the profit and loss account according to the terms of employment to the extent they are due to either employees or the tax authorities.

Interest

Interest is allocated to successive financial reporting periods in proportion to the outstanding principal. Premiums and discounts are treated as annual interest charges so that the effective interest rate, together with the interest payable on the loan, is recognized in the profit and loss account, with the amortized (net) cost of the liabilities being recognized in the balance sheet. Period interest charges and similar charges are recognized in the year in which they fall due.

Taxation

The taxation charge is calculated after taking into account the relevant tax-exempt components of income and expenses and the effects of specific tax regulations.

5 | NOTES TO THE CONSOLIDATED BALANCE SHEET

Note 3 - Intangible fixed assets

Goodwill

Goodwill comprises the amount paid in excess of the net asset value of the acquired business by Center Parcs Europe. The movement in the financial year is as follows:

	September 30, 2021	September 30, 2020
Book value at the beginning of the year	16,833	24,416
Amortization	(7,563)	(7,583)
Book value at the end of the year	9,270	16,833
Historic cost	151,231	151,231
Cumulative depreciation	(141,961)	(134,398)
Book value at the end of the year	9,270	16,833

Other

Other intangible fixed assets relate to software. The movement in the financial year is as follows:

	September 30, 2021	September 30, 2020
Book value at beginning of the year	1,789	1,724
Amortization	(590)	(565)
Additions	173	630
Disposals	(102)	(257)
Disposals - amortization	89	257
Book value at end of the year	1,359	1,789
Historic cost	4,358	4,287
Cumulative amortization	(2,999)	(2,498)
Book value at end of the year	1,359	1,789

Note 4 - Tangible fixed assets

Historical cost and cumulative depreciation are as follows:

	Land buildings & improvements	Machinery & Installations	Furniture/ equipment	Construction in progress	Total
Book value at September 30, 2020	31,952	37,513	29,156	1,169	99,790
Additions	5,089	3,632	4,510	3,066	16,297
Transfers	101	605	301	(1,007)	-
Depreciation	(3,308)	(5,329)	(8,567)	-	(17,204)
Disposals	(452)	(5,318)	(23,524)	-	(29,294)
Disposals - depreciation	772	4,761	22,884	-	28,417
Book value at September 30, 2021	34,154	35,864	24,760	3,228	98,006

	Land buildings & improvements	Machinery & Installations	Furniture/ equipment	Construction in progress	Total
Cost at year end	55,853	104,477	77,378	3,228	240,936
Cumulative depreciation	(21,699)	(68,613)	(52,618)	-	(142,930)
Book value at September 30, 2021	34,154	35,864	24,760	3,228	98,006

The additions, especially for construction in progress, are mainly related to development activities at several villages.

The main depreciation rates used are:

Land	0 %	Machinery and installations	7 - 20 %
Buildings and improvements	3 - 20 %	Furniture and equipment	10-25 %

The useful life is capped at the remaining lease-term of the village, as stipulated in the contract with the owners of the bungalows and central facilities.

Note 5 - Financial fixed assets

Deferred tax asset

The movement in the deferred tax asset is as follows:

	September 30, 2021	September 30, 2020
Book value at beginning of the year	11,355	9,874
Movement	(4,755)	1,481
Book value at end of the year	6,600	11,355

The company has tax loss carry forwards available of approximately € 181 million (2019/20 € 154 million). A tax amount of € 2.8 million is expected to be realized within one year. The losses refer to Belgium, Netherlands and Germany. All having an unlimited carry forward of losses.

Participations

	September 30, 2021	September 30, 2020
Net asset value at beginning of the year	47	46
Movement	(163)	(117)
Total	(116)	(71)
Netting with loan to participation	163	118
Net asset value at end of the year	47	47

Participations:

♦ Touristik Medebach GmbH, Germany	33 %
♦ Bispingen Resort GmbH, Germany	24 %
♦ Touristik-Gesellschaft Oberes Elztal GmbH, Germany	20 %
♦ PVCP Services GIE, France	4 %
♦ Foncière Loisirs Vielsalm	19 %

Loans to participations

	September 30, 2021	September 30, 2020
Book value at beginning of the year	2,322	2,362
Movement	118	78
Negative participation	(163)	(118)
Book value at end of the year	2,277	2,322

This is a long term loan from CP SP België NV to Foncière Loisiers Vielsalm. This loan matures in September 2032 and has interest rate of 4 % per annum.

Deferred cost

	September 30, 2021	September 30, 2020
Book value at beginning of the year	681	809
Additions	1,733	-
Release	(195)	(128)
Book value at end of the year	2,219	681

The deferred costs relate to long-term contracts with catering providers in Germany and Belgium and are released to the profit and loss statement in line with the respective contract maturity on one hand and prefinanced renovation works for a park in Belgium, which will be released to the profit and loss account over the duration of the lease contract

Security deposits

	September 30, 2021	September 30, 2020
Book value at beginning of the year	362	358
Movement	(1)	4
Book value at end of the year	361	362

Security deposits mainly have been posted on behalf of rent agreements with institutional owners.

Other financial fixed assets

	September 30, 2021	September 30, 2020
Book value at beginning of the year	2,718	5,795
Addition	-	-
Release	-	(5,445)
Transfer to/from current assets	(1,500)	2,368
Book value at end of the year	1,218	2,718

The balance per September 30, 2021 concerns a long term receivable on the participation in Fonciere Loisiers Vielsalm.

Note 6 - Work in progress

The work in progress balance as per year end relates to refurbishments of villages (to be) sold to property-owners.

The movement in work in progress is as follows:

	September 30, 2021	September 30, 2020
Book value at beginning of the year	15,195	11,130
Additions	110,623	88,852
Costs recycled to P&L	(111,860)	(91,050)
Revenues recycled to P&L	109,665	90,672
Invoiced amounts	(114,312)	(76,618)
Movement to/from Receivables	(3,500)	-
Subtotal	5,811	22,986
Transfer to other liabilities	5,551	(7,791)
Book value at end of the year	11,362	15,195

Note 7 - Debtors

Debtors are of a short-term nature. An amount of € 2.1 million is deducted from debtors as an allowance for doubtful debtors (September 30, 2020: € 2.2 million).

An amount of € 250.2 million is included in amounts due from affiliated companies which relates to the cash pool activities of Groupe Pierre & Vacances Center Parcs and is due from the dedicated financing entity in the Group.

In other receivables an amount is included for Űberbrückungshilfe III € 17.0 million.

Note 8 - Cash and Cash Equivalents

Based on the new loan agreement (New Financing) as disclosed in the Director's report and in Note 12 Short term position of long term loan under Cash and Cash Equivalents a total amount of € 25 million has been allocated to a dedicated account pledged for the benefit of the lenders which can only be used for the payment of rents due to institutional donors present in the Netherlands, Belgium and in Germany.

According to the contractual clause related to the short term loan agreement it is expected that the restricted cash will become available during fiscal year 2021/22.

Note 9 - Long-term liabilities

Long-term liabilities consists of Financial lease agreements and Deferred Income.

The movement in Financial lease agreements is:

	September 30, 2021	September 30, 2020
Total book value at the beginnging of the year	11,786	12,757
Additions	-	1,704
Lease payments	(2,917)	(2,718)
Other	(14)	43
Total book value at the end of the year	8,855	11,786
of which current	3,294	3,074
of which non-current	5,561	8,712

The movement in Deferred income is:

	September 30, 2021	September 30, 2020
Total book value at the beginnging of the year	12,094	18,193
Additions	-	-
Release to profit & loss account	(1,447)	(5,964)
Transfer to other financial fixed assets	-	(135)
Total book value at the end of the year	10,647	12,094
of which current	1,480	1,463
of which non-current	9,167	10,631

An amount of € 5.5 million has a duration > 5 years.

Note 10 - Employee benefits liabilities

The Company has defined benefit pension plans for the employees.

Balance sheet items relating to the pensions and other post-employment benefit plans disclosed in the balance sheet:

	September 30, 2021	September 30, 2020
Defined benefit plan	817	668
Jubilee benefits	3,771	3,416
Total employee benefits liabilities	4,588	4,084

Defined benefit plan

The movement in the defined benefit plans are as follows:

	September 30, 2021	September 30, 2020
Provision for pensions:
Present value of funded obligation	113,580	115,798
Fair value of plan assets	(113,058)	(115,510)
	522	288
Present value of unfunded obligation	295	380
Total provision for pensions	817	668

The funded plan relates to the Netherlands, since this plan has a historic nature and is replaced by a defined contribution plan as per 1 January 2018, the risk related to this Dutch plan are managed. The unfunded plan relates to Belgium.

The movement of the provision can be explained by the movement of the Defined Benefit Obligation and the movement of the Fair Value of Plan Assets. These are shown below:

	September 30, 2021	September 30, 2020
Opening defined benefit obligation	116,178	129,251
Interest cost	733	280
Current service cost	649	612
Contributions by employees	362	357
Benefits paid	(3,238)	(2,437)
Actuarial losses/-gains	(809)	(11,885)
Closing defined benefit obligation	113,875	116,178

Changes in the fair value of the plan assets are as follows:

	September 30, 2021	September 30, 2020
Opening fair value of plan assets	115,510	128,584
Interest income	733	280
Contributions by employer	628	632
Contributions bij employee	362	357
Benefits paid	(3,238)	(2,437)
Actuarial losses/-gains	(937)	(11,906)
Closing fair value of plan assets	113,058	115,510

The actuarial results are recognized in Other Comprehensive Income (OCI) as remeasurements:

	September 30, 2021	September 30, 2020
Actuarial result on defined benefit obligation	(809)	(11,885)
Actuarial result on fair value of plan assets	937	11,906
Total	128	21

Net benefit expense:

	September 30, 2021	September 30, 2020
Current service cost	649	612
Interest cost on benefit obligation	733	280
Interest income on fair value of plan assets	(733)	(280)
Net actuarial results recognized during the year	-	(2)
Net benefit expense	649	610

Actuarial assumptions:

	2020/21		2019/20
	Unfunded	Funded	Unfunded	Funded
Discount rate	-0.25 - 0.75 %	0.75 %	0.00 %	0.00 % - 0.75 %
Expected return on assets	-	0.75 %	-	0.00 % - 0.75 %
Expected salary increases	-	-	-	-

Jubilee benefits

The Company agreed to grant jubilee payments for employees who have been employed for a certain number of years. These benefits are unfunded.

The movement of the provision is as follows:

	September 30, 2021	September 30, 2020
Opening defined benefit obligation	3,416	3,548
Interest cost	14	5
Current service cost	297	311
Benefits paid	(155)	(252)
Actuarial (gains) / losses	199	(196)
Closing defined benefit obligation	3,771	3,416

Net benefit expense:

	September 30, 2021	September 30, 2020
Current service cost	297	311
Interest cost on benefit obligation	14	5
Recognition actuarial (gains) / losses	199	(196)
Net benefit expense	510	120

Actuarial assumptions:

	2020/2021	2019/2020
Discount rate	0.00 % - 0.75 %	0.00 % - 0.75 %

The actuarial results are recognized in the statement of profit and loss.

Note 11 - Other provisions

The movement of the provisions can be presented as follows:

	Refurbishment	Dilapidation	Litigation	Reorganization	Total
Book value at 30/09/2020	3,891	2,036	1,401	1,200	8,528
Additions	1,064	-	-	238	1,302
Usage	-	-	(115)	(1,200)	(1,315)
Discount effect	-	112	-		112
Book value at 30/09/2021	4,955	2,148	1,286	238	8,627
Duration < 1 year	-	-	-	238	238
Duration > 1 year	4,955	2,148	1,286	-	8,389
Duration > 5 years	4,955	1,741	-	-	6,696

Note 12 - Short term position of long term loan

	September 30, 2021	September 30, 2020
Book value at beginning of the year	-	-
Movement	174,343	-
Book value at end of the year	174,343	-

On May 10, 2021 PV SA accepted a binding financing offer for a maximum aggregate amount of € 300 million. ( New Financing). The first Tranche of € 175 million was made available to the company (CPE N.V.) on June 21, 2021. The amount including financing fees is recorded on the balance sheet at amortized cost using the effective interest rate method. The amount received has been used for funding the PVCP Group.

Issue date	Maturity date	Principal Amount outstanding at September 30, 2021 in € million	interest rate	additional interest
June 21, 2021	September 21, 2022	52.1	2.00 %	10.00 %
June 21, 2021	September 21, 2022	122.2	3.75 %
Total		174.3

Note 13 - Other Liabilities

Other liabilities can be specified as follows:

	September 30, 2021	September 30, 2020
Salaries, holiday payments and bonusses	21,971	23,259
Temporary staff	1,399	365
Energy	2,937	3,371
Vouchers	26,076	46,610
Deferred income - current portion	1,480	1,463
Transfer from construction projects in progress	13,961	8,411
Other	43,991	24,699
Total other liabilities	111,815	108,178

Vouchers consist of vouchers issued as a result of the Covid-19 pandemic and regular vouchers issued during the cause of normal business. The decrease in outstanding vouchers is caused by repayments or usage of the vouchers that were issued as a result of the Covid-19 pandemic. The vouchers have an expiry date between 3 months and 3 years.

Under the caption 'other' a part of the received Covid-19 pandemic grants in Netherlands and Germany which at the moment of drafting the annual accounts could not be recognized in the profit and loss statement was recorded. The amount for Netherlands is € 2.1 million and relates to NOW3. The amount for Germany is € 6.0 million (reference is made to note 18) and relates to November and December aid.

Note 14 - Contingent liabilities and commitments

Outstanding purchase orders amount to € 80.8 million, mainly related to development projects (September 30, 2020: €49.6 million).

The following contingent liabilities exist at September 30, 2021:

•	Bank guarantees on behalf of third parties € 0.2 million (September 30, 2020: € 2.4 million),
•	Total commitments regarding the operational lease of holiday villages, office buildings and equipment amount to € 2,219 million (September 30, 2020: € 2,335 million), of which € 181.3 million for 2021/22, € 705.0 million between 1-5 years and € 1,332.4 million >5 years.

A rent-guarantee has been provided by Center Parcs Europe N.V. to bungalow-owners of the village Bostalsee of one year of rent.

Under the lease agreements for four resorts in The Netherlands, two in Belgium and one in Germany, the Company must adhere to covenants regarding the ratio of (a specified definition of) the operational result and the external rent paid. In case of default, the Company has to file a cash deposit or a bank guarantee with the lessor. As a consequence of the Covid-19 pandemic, the Company obtained a waiver of these covenants until June 30, 2022. The Company expects to comply with these covenants in the future after the waiver period has ended.

As from the drawdown of the first tranche of the New Financing various first-ranking guarantees have been granted over securities, brands and intragroup receivables of certain subsidiaries and subsubsidiaries of the Center Parcs division of the Group:

1.	the granting by The Company of a first-ranking pledge under Dutch law over the securities of CP Participations BV, Center Parcs Development BV, Sunparks BV, Center Parcs NL Holding BV and Center Parcs Germany Holding BV held by The Company for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the non-Senior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) on the drawdown date of CPNV Tranche 2, the New Financing Tranche 2 Senior Lenders,
2.	the granting by The Company of a pledge of an account of first-ranking financial securities under Swiss law relating to the securities of Pierre & Vacances-Center Parcs Suisse GmbH held by Center Parcs Europe NV for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the non-Senior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders,
3.	the granting by The Company of a pledge of an account of first-ranking financial securities under French law relating to the securities of Center Parcs Holding Belgique SAS held by Center Parcs Europe NV for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the non-Senior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders,
4.	the granting by The Company of a first-ranking pledge under Dutch law over the "Center Parcs" brands and their derivatives for the benefit of Center Parcs Europe NV (i) at the drawdown date of Tranche 1 CPNV, the non-Senior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) at the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders,
5.	the granting by Center Parcs Europe NV of a first-ranking pledge under Dutch law over the receivables held by Center Parcs Europe NV against Center Parcs NL Holding BV, Center Parcs Germany Holding BV and Center Parcs Holding Belgique SAS and their direct and indirect subsidiaries for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the non-Senior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders,
6.	the granting by Center Parcs Europe NV of a first-ranking pledge under French law over the "Center Parcs" brands and their derivatives held by The Company in France for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the Tranche 1 non-Senior and Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders,
7.	the granting by Center Parcs Europe NV of a first-ranking pledge under German law over the "Center Parcs" brands and their derivatives held by Center Parcs Europe NV in Germany for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the Tranche 1 non-Senior and Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the Tranche 2 Senior Lenders,
8.	the granting by Center Parcs Europe NV of a first-ranking pledge under French law over the bank account balance opened in the name of The Company with Natixis for the benefit of the non-Senior and Senior Lenders,

With regard to other contingent liabilities, reference is made to the notes of the parent company balance sheet.

Note 15 - Financial instruments

The Company has no significant credit risks, other than those, which have already been provided for, nor any concentrations of credit with a single customer or in an industry or geographical region, which carries an unusually high credit risk.

As nearly all the Company's assets and liabilities are denominated in euros, the Company has very limited exchange risk.

Interest rate risk, market risk and liquidity risk are minimal.

In view of their nature, the fair values of financial instruments approximate their carrying amounts.

Note 16 - Transactions with related parties

The Pierre & Vacances Group provides management services to the Company for which it charges a fee. In 2020/21, this fee amounts to € 10.7 million (2019/20: €17.1 million).

In 2020/21 as a result of the New Financing/Equity Strengthening Transaction at Group level and the involvement of the Company in the process the Company's transactions with related parties increased. For further disclosure please refer to note 7.

No other transactions with related parties exist that require additional disclosure.

All related party transactions are at arm's length.

6 | NOTES TO THE CONSOLIDATED STATEMENT OF PROFIT & LOSS AND OTHER COMPREHENSIVE INCOME

Note 17 - Net turnover

	September 30, 2021	September 30, 2020
Accommodation turnover	295,083	334,895
Catering	17,594	24,946
Shops	13,606	15,553
Leisure	23,383	36,767
Property development	110,030	91,228
Other	12,149	13,135
Total net turnover	471,845	516,524

The property developments turnover is mainly related to refurbishments to the value of € 110.0 million for this year (2019/20: € 91.2 million).

Other turnover includes revenues from commissions and management fees from affiliated companies € 3.4 million (2019/20: € 5.0 million) and various other elements € 8.7 million (2019/20: € 8.1 million).

The breakdown of the net turnover per country is as follows:

	September 30, 2021	September 30, 2020
Netherlands	238,260	231,668
Belgium	117,284	120,524
Germany	116,301	164,332
Total net turnover	471,845	516,524

Net turnover in The Netherlands increased by € 6.6 million, of which € 6,2 million is explained by a decrease in accommodation turnover and € 13.2 million increased property development.

Net turnover in Belgium decreased by € 3.2 million, which consists mainly of € 3.1 million related to decreased accommodation turnover.

Net turnover in Germany decreased € 48.0 million, which consists mainly of € 30.5 million accommodation turnover and € 8.4 million decreased on site sales (catering, shops and leisure).

The decrease in accommodation turnover and on-site sales (catering, shops, leisure) is heavily influenced by the Covid-19 pandemic. The Covid-19 pandemic caused park closure from early November 2020 up until April 2021 for Belgium and up until June 2021 for Germany). Also after the park closures limitations were in force that further influenced the on-site sales.

Note 18 - Other operating income

Other operating income increases to € 39.9 million (2019/20: € 2.3 million) mainly due to government grants Germany € 36.2 million and government grants Belgium € 0.6 million.

German Grants

Three German subsidies are provisionally granted for a total of € 42.2 million. Of this amount € 25.2 million was received during financial year 2020/21 and € 17.0 million is received in financial year 2021/22.

Recognition in the financial statement of 2020/21 has been limited to € 36.2 million based on a risk assessment that estimated the impact of additional clarifications given by the German government between the moment of initial application and the moment of final application as well as the possible impact following the finalization of the German statutory accounts for all financial years up to and including 2020/21 under German HGB over the coming months.

The difference between recognized and received amount of € 6.0 million is recorded as a liability in the financial statements.

Note 19 - External rent and other charges

Operational lease terms in relation to real estate have been included in 'cost of subcontracted work and other external charges' for an amount of € 137.4 million ( 2019/20 € 142.2 million). The lease expense of the villages mainly contains two effects: it decreased compared to 2019/20 with due to COVID-19 related rent concessions that were agreed with institutional investors and it increased as a result of renovation works and standard inflation.

Note 20 - Wages, social security charges and pension expenses

	September 30, 2021	September 30, 2020
Wages	81,707	102,896
Social security charges	17,558	18,358
Defined contribution pension costs	2,843	3,384
Defined benefit pension costs	649	610
Jubilee benefit costs	510	120
Total	103,267	125,368

The wages include an amount of € 11.9 million (application € 13.9 million) NOW3 subsidy and € 0.9 million NOW1 subsidy (2019/20: € 7.0 million included for NOW1 subsidy) granted by the Dutch government. The NOW subsidy is meant to ease the negative effects from the Covid-19 pandemic. The subsidy is still subject to an external audit. In addition, the Company had less payroll expenses due to temporary unemployment from the Belgian € 7.6 million and German government € 3.0 million.

During the financial year the Company employed 3,046 employees (full time equivalents) (2019/20: 3,019). The villages employed 2,631 and the head offices 415 employees (2019/20: 2,586 and 433). The split of the number of employees over the countries is as follows:

	September 30, 2021	September 30, 2020
Netherlands	1,380	1,313
Belgium	947	969
Germany	719	737
Total	3,046	3,019

Note 21 - Other operating expenses

	September 30, 2021	September 30, 2020
Energy	22,200	24,839
Promotional expenses	23,709	23,744
Administration expenses	10,985	10,300
Maintenance expenses	18,992	19,283
Property development	111,851	91,298
Other recharges	10,073	-
Other	37,715	42,827
Total other operating expenses	235,525	212,291

Other recharges relate to fees recharged via the business line, CP Holding SAS.

Note 22 - Net financial income and expenses

	September 30, 2021	September 30, 2020
Financial income:
Affiliated companies	4,384	2,125
New Financing - recharged	9,793	-
Interest Tax Authorities	178	-
Total financial income	14,355	2,125
Financial expenses:
Bank Accounts	3,265	172
New Financing	9,793	-
Interest financial lease agreements	842	1,064
Exchange losses	3	(34)
Other	525	95
Total financial expenses	14,428	1,297
Net financial income/(-expenses)	(73)	828

Note 23 - Income tax

Tax on ordinary activities leads to an expense of € 5.6 million (2019/20 benefit of € 3.3 million). The reconciliation is as follows:

	September 30, 2021	September 30, 2020
Tax charge at Dutch statutory tax rate	5,618	11,261
Differences in tax rate	(706)	1,409
Change in tax rates	415	(297)
Revaluation goodwill CP Ardennen	-	(778)
Not deductible- and non taxable cost ^*	(3,026)	(3,424)
Unrecognised deferred tax assets	(7,867)	(5,180)
Prior year adjustment	(73)	309
Total	(5,639)	3,300
Effective tax rate	-25 %	7 %

^* Non deductible- and non taxable cost

Not-taxable write-off on goodwill	(1,924)	(1,924)
Not deductible leasing cost	(1,070)	(1,046)
Covid premiums	308	-
Mixed costs and other	(340)	(454)
Total	(3,026)	(3,424)

The applicable Dutch statutory tax rate is 25 %.

7 | PARENT COMPANY BALANCE SHEET

(after proposed appropriation of the result for the year)

(in €1,000)	Note	September 30, 2021		September 30, 2020
FIXED ASSETS
Intangible fixed assets	25
Goodwill		8,154		15,222
Software		869		1,350
			9,023		16,572
Tangible fixed assets	26
Land and buildings		-		6
Machinery and installations		140		199
Furniture and equipment		333		149
Construction in progress		188		112
			661		466
Financial fixed assets
Subsidiary companies	27	111,382		117,890
Participations		6		6
Intercompany loan to subsidiary company		9,626		9,626
Security deposits		2		2
Deffered tax	28	4,814		2,853
			125,830		130,377
Total fixed assets			135,514		147,415
CURRENT ASSETS
Finished products		264		328
Trade debtors	29	2,745		5,435
Amounts due from subsidiary companies	29	174,714		122,512
Amounts due from affiliated companies	29	288,958		144,199
Pension receivables		-		30
Other receivables		13,238		5,160
Other current assets		1,406		2,565
Cash and cash equivalents	30	59,327		22,128
			540,652		302,357
TOTAL ASSETS			676,166		449,772

(in €1,000)	Note	September 30, 2021		September 30, 2020
EQUITY
Issued capital	31	36,473		36,473
Share premium		21,022		21,022
Other reserves		(8,347)		18,689
			49,148		76,184
PROVISIONS
Employee benefit liabilities	32	69		80
Subsidiary companies		82,905		64,779
Defered tax liability		-		-
			82,974		64,859
LONG-TERM LIABILITIES
Deferred income	33	8,625		9,760
			8,625		9,760
CURRENT LIABILITIES
Trade creditors		1,144		-
Amounts due to subsidairy companies		302,905		236,142
Amounts due to affiliated companies		10,341		7,000
Short term position of long term loan	34	174,343		-
Taxation and social security		5,652		700
Pension payable		259		-
Other liabilities	35	40,775		55,127
			535,419		298,969
TOTAL EQUITY AND LIABILITIES			676,166		449,772

8 | PARENT COMPANY PROFIT & LOSS ACCOUNT

(in €1,000)	September 30, 2021	September 30, 2020
Net result from investments	(24,538)	(27,668)
Other	(2,372)	(13,849)
NET RESULT	(26,910)	(41,517)

9 | ACCOUNTING POLICIES

Note 24 - Accounting policies

The notes to the consolidated financial statements form also part of the notes to Center Parcs Europe N.V.'s parent company balance sheet and profit & loss account. As provided in the Dutch Civil Code (Article 402), the required financial information is contained in the consolidated financial statements. The parent company's profit and loss account is therefore shown in abbreviated form.

10 NOTES TO THE PARENT COMPANY ACCOUNTS

Note 25 - Intangible fixed assets

Intangible fixed assets comprise the goodwill paid in excess over the net asset value of the acquired business of Center Parcs Europe.

The movement in the financial year is as follows:

Goodwill	September 30, 2021	September 30, 2020
Book value at beginning of the year	15,222	22,292
Amortization	(7,068)	(7,070)
Book value at end of the year	8,154	15,222
Historic cost	141,392	141,392
Cumulative amortization	(133,238)	(126,170)
Book value at the end of the year	8,154	15,222

Software	September 30, 2021	September 30, 2020
Book value at beginning of the year	1,350	1,409
Addition	11	413
Amortization	(471)	(472)
Disposals	(90)	(257)
Disposals - amortization	69	257
Book value at end of the year	869	1,350
Historic cost	3,285	3,364
Cumulative amortization	(2,416)	(2,014)
Book value at end of the year	869	1,350

Note 26 - Tangible fixed assets

Historical cost and cumulative depreciation are as follows:

	Land and buildings	Machinery and Installations	Furniture/ equipment	Construction in progress	Total
Book value at September 30, 2020	6	199	149	112	466
Additions	-	27	267	76	370
Depreciation	(2)	(30)	(83)	-	(115)
Disposals	(143)	(879)	(6)	-	(1,028)
Disposals - depreciation	139	823	6	-	968
Book value at September 30, 2021	-	140	333	188	661

	Land and buildings	Machinery and Installations	Furniture/ equipment	Construction in progress	Total
Cost at year end	347	168	1,095	188	1,798
Cumulative depreciation	(347)	(28)	(762)	-	(1,137)
Book value at September 30, 2021	-	140	333	188	661

The main depreciation rates used are:

Buildings	3 %
Machinery and installations	7 %
Furniture and equipment	10-25 %

Note 27 - Investments in subsidiary companies

The movement in the investments in subsidiary companies is as follows:

	September 30, 2021	September 30, 2020
Net asset value at beginning of the year	53,111	81,066
OCI	(96)	(287)
Net result from investments	(24,538)	(27,668)
Total	28,477	53,111
Transfer to provision	82,905	64,779
Net asset value at end of the year	111,382	117,890

The transfer to provision relates to subsidiary companies with a negative value, for which the Company considers itself liable, in accordance with section 376, Book 2 of the Dutch Civil Code.

Note 28 - Deferred Tax Asset

The deferred tax assets and liabilities relate to the Dutch fiscal unity for corporate income tax purposes and meet the conditions for offsetting. Therefore the deferred taxes are presented here net.

Note 29 - Debtors and amounts due from subsidiary / affiliated companies

Debtors are of a short-term nature and consist of amounts due from external travel agents and tour operators.

The amounts due from subsidiary companies are current account positions and are of a short-term nature. The Company acts as head of the cash pool for the activities in Belgium, Germany and the Netherlands.

The amounts due from affiliated companies mainly relate to cash pool activities of Groupe Pierre & Vacances Center Parcs and is due to the dedicated financing entity in the Group. Since the New Financing for the Group predominantly took place via the Company and the Company forwarded the amounts received under the New Financing to the head of the Group cash pool. Thus the amount has increased compared to prior year with € 139.0 million.

Note 30 - Cash and cash equivalents

Based on the new loan agreement (New Financing) as disclosed in the Director's report and in Note 12 "Short term position of long term loan" under Cash and cash equivalents a total amount of € 25 million has been allocated to a dedicated account pledged for the benefit of the lenders which can only be used for the payment of rents due to institutional donors present in the Netherlands, Belgium and in Germany. According to the contractual clause related to the short term loan agreement it is expected that the restricted cash will become available during fiscal year 2021/22.

Note 31 - Equity

The authorized capital amounts to € 100 million, being 1 million shares of €100 each. Issued and fully paid are 364.735 shares. CP Holding SAS., Paris holds all shares.

As a result of the equity strengthening transaction at PV SA the shares of the Company have been pledged for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the non-Senior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders.

The equity movement during the financial year:

	Issued capital	Share premium	Other reserves	Total
Balance at September 30, 2020	36,473	21,022	18,689	76,184
Other comprehensive income	-	-	(126)	(126)
Dividend paid	-	-	-	-
Net result	-	-	(26,910)	(26,910)
Balance at September 30, 2021	36,473	21,022	(8,347)	49,148

	Issued capital	Share premium	Other reserves	Total
Balance at September 30, 2019	36,473	21,022	60,599	118,094
Other comprehensive income	-	-	(393)	(393)
Dividend paid	-	-		-
Net result	-	-	(41,517)	(41,517)
Balance at September 30, 2020	36,473	21,022	18,689	76,184

Other comprehensive income consists of actuarial gains and losses regarding the defined benefit schemes in employee benefits liabilities.

The consolidated equity movement schedule equals the parent company equity movement schedule.

The minority share movement during the financial year:

	September 30, 2021	September 30, 2020
Book value at beginning of the year	(3,454)	(2,280)
Result of the year	(1,151)	(1,163)
Other	(10)	(11)
Book value at end of the year	(4,615)	(3,454)

Note 32 - Pensions and other post-employment benefit plans

The Company has defined benefit pension plans for the employees.

The following balance sheet items relating to the pensions and other post-employment benefit plans are disclosed in the balance sheet:

	September 30, 2021	September 30, 2020
Defined benefit plan	-	-
Jubilee benefits	69	80
Total	69	80

The movement in the defined benefit plans are as follows:

	September 30, 2021	September 30, 2020
Present value of funded obligation	97,444	98,835
Fair value of plan assets	(97,444)	(98,835)
Total provision for pensions	-	-

The movement of the provision can be explained by the movement of the Defined Benefit Obligation and the movement of the Fair Value of Plan Assets. These are shown below:

	September 30, 2021	September 30, 2020
Opening defined benefit obligation	98,835	112,868
Interest cost	-	280
Current service cost	733	-
Benefits paid	(2,066)	(1,987)
Actuarial losses/-gains	(58)	(12,326)
Closing defined benefit obligation	97,444	98,835

Changes in the fair value of plan assets are as follows:

	September 30, 2021	September 30, 2020
Opening fair value of plan assets	98,835	112,868
Interest income	733	280
Benefits paid	(2,066)	(1,987)
Actuarial losses/gains	(58)	(12,326)
Closing fair value of plan assets	97,444	98,835

The actuarial results are recognized in Other Comprehensive Income (OCI) as remeasurements:

	September 30, 2021	September 30, 2020
Actuarial result on Defined Benefit Obligation	(58)	(12,326)
Actuarial result on Fair Value of Plan Assets	58	12,326
Total remeasurements to be recognized in OCI	-	-

Net benefit expense:

	September 30, 2021	September 30, 2020
Interest cost on benefit obligation	733	280
Interest income on fair value of plan assets	(733)	(280)
Net benefit expense	-	-

Actuarial assumptions:

Discount rate	0.75 %	0.75 %
Expected return on assets	0.75 %	0.75 %
Expected salary increases	0.00 %	0.00 %

Jubilee benefits

The Company agreed to grant jubilee payments for employees who have been employed for a certain number of years. These benefits are unfunded.

The movement of the provision is as follows:

	September 30, 2021	September 30, 2020
Opening defined benefit obligation	80	83
Interest cost	-	-
Current service cost	7	8
Benefits paid	-	(3)
Actuarial (gains) / losses	(18)	(8)
Closing defined benefit obligation	69	80

Net benefit expense:

	September 30, 2021	September 30, 2020
Current service cost	7	8
Interest cost on benefit obligation	-	-
Recognition actuarial (gains) / losses	(18)	(8)
Total	(11)	-

Actuarial assumptions:

Discount rate

0.75 %

0.75 %

The actuarial results are recognized in the profit & loss statement.

Note 33 - Long Term Liabilties

The movement in Deferred income is:

	September 30, 2021	September 30, 2020
Total book value at the beginnging of the year	10,895	16,665
Additions	-	-
Release to profit & loss account	(1,135)	(5,635)
Transfer to other financial fixed assets	-	(135)
Total book value at the end of the year	9,760	10,895
of which current	1,135	1,135
of which non-current	8,625	9,760

An amount of € 3.3 million has a duration > 5 years.

Note 34 - Short term position of long term loan

	September 30, 2021	September 30, 2020
Book value at beginning of the year	-	-
Movement	174,343	-
Book value at end of the year	174,343	-

On May 10, 2021 PV SA accepted a binding financing offer for a maximum aggregate amount of € 300 million (New Financing). The first Tranche of € 175 million was made available to the Company on June 21, 2021. The amount including financing fees is recorded on the balance sheet at amortized cost using the effective interest rate method. The amount received has been used for funding the PVCP Group.

Issue date	Maturity date	Principal Amount outstanding at September 30, 2021 in € million	interest rate	additional interest
June 21, 2021	September 21, 2022	52.1	2.00 %	10.00 %
June 21, 2021	September 21, 2022	122,2	3.75 %
Total		174.3

Note 35 - Other liabilities

Other liabilities can be specified as follows:

	September 30, 2021	September 30, 2020
Salaries, holiday payments and bonusses	1,237	1,673
Temporary staff	505	918
Vouchers	26,016	44,667
Deferred income - current portion	1,135	1,135
Transfer from construction projects in progress	1,026	249
Other	10,857	6,485
Total other liabilities	40,775	55,127

Vouchers consist of vouchers issued as a result of the Covid-19 pandemic and regular vouchers issued during the cause of normal business. The decrease in outstanding vouchers is caused by repayments or usage of the vouchers that were issued as a result of the Covid-19 pandemic. The vouchers have an expiry date between 3 months and 3 years.

Note 36 - Contingent liabilities

The following contingent liabilities existed at September 30, 2021:

•

Statements deposited with the Trade Register assuming joint and several liabilities for the debts deriving from juridical acts of the Dutch subsidiaries (section 403, Book 2 of the Dutch Civil Code),

•

A fiscal unity exists for income tax in the Netherlands:

•	Center Parcs Europe N.V.
•	Center Parcs NL Holding B.V., Capelle aan den IJssel
•	Center Parcs Germany Holding B.V., Capelle aan den IJssel
•	CP Participations B.V., Capelle aan den IJssel
•	Center Parcs Netherlands N.V., Capelle aan den IJssel
•	Sunparks B.V., Capelle aan den IJssel
•	CPN 2 B.V., Capelle aan den IJssel
•	PVCP Support Services B.V., Capelle aan den IJssel
•	CP Development B.V., Capelle aan den IJssel
•	Beheer Recreatiepark Zandvoort B.V., Capelle aan den IJssel

•

A fiscal unity exists for VAT in the Netherlands:

•	Center Parcs Europe N.V.
•	Center Parcs Netherlands N.V., Capelle aan den IJssel
•	Sunparks B.V., Capelle aan den IJssel
•	PVCP Support Services B.V., Capelle aan den IJssel
•	CP Development B.V., Capelle aan den IJssel

•

A letter of comfort has been provided to the following subsidiaries:

•	Center Parcs Leisure Deutschland GmbH, Cologne
•	Center Parcs Bungalowpark Nordseekuste GmbH, Cologne
•	Center Parcs Entwicklungsgesellschaft Germany GmbH, Cologne
•	Center Parcs Holding Bostalsee UG, Cologne
•	Center Parcs Ardennen NV
•	CP SP België NV
•	Sunparks Leisure N.V. - Ardennen

As from the drawdown of the first tranche of the New Financing various first-ranking guarantees have been granted over securities, brands and intragroup receivables of certain subsidiaries and subsubsidiaries of the Center Parcs division of the Group:

1.	the granting by The Company of a first-ranking pledge under Dutch law over the securities of CP Participations BV, Center Parcs Development BV, Sunparks BV, Center Parcs NL Holding BV and Center Parcs Germany Holding BV held by The Company for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the non-Senior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) on the drawdown date of CPNV Tranche 2, the New Financing Tranche 2 Senior Lenders,
2.	the granting by The Company of a pledge of an account of first-ranking financial securities under Swiss law relating to the securities of Pierre & Vacances-Center Parcs Suisse GmbH held by Center Parcs Europe NV for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the non-Senior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders,
3.	the granting by The Company of a pledge of an account of first-ranking financial securities under French law relating to the securities of Center Parcs Holding Belgique SAS held by Center Parcs Europe NV for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the non-Senior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders,
4.	the granting by The Company of a first-ranking pledge under Dutch law over the "Center Parcs" brands and their derivatives for the benefit of Center Parcs Europe NV (i) at the drawdown date of Tranche 1 CPNV, the non-Senior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) at the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders,
5.	the granting by Center Parcs Europe NV of a first-ranking pledge under Dutch law over the receivables held by Center Parcs Europe NV against Center Parcs NL Holding BV, Center Parcs Germany Holding BV and Center Parcs Holding Belgique SAS and their direct and indirect subsidiaries for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the nonSenior New Financing Lenders and the New Financing Tranche 1 Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders,
6.	the granting by Center Parcs Europe NV of a first-ranking pledge under French law over the "Center Parcs" brands and their derivatives held by The Company in France for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the Tranche 1 non-Senior and Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the New Financing Tranche 2 Senior Lenders,
7.	the granting by Center Parcs Europe NV of a first-ranking pledge under German law over the "Center Parcs" brands and their derivatives held by Center Parcs Europe NV in Germany for the benefit of (i) on the drawdown date of Tranche 1 CPNV, the Tranche 1 non-Senior and Senior Lenders and (ii) on the drawdown date of Tranche 2 CPNV, the Tranche 2 Senior Lenders,
8.	the granting by Center Parcs Europe NV of a first-ranking pledge under French law over the bank account balance opened in the name of The Company with Natixis for the benefit of the non-Senior and Senior Lenders.

Note 37 - Number of employees

During the financial year the Company employed 117 (2019/20: 128) employees (full time equivalents).

Note 38 - Management remuneration and Supervisory directors' emoluments

Board of Management

As per May 31, 2021 the board of management was extended and consists of 3 members. One of the members does not receive a remuneration for its activities. The total remuneration for the board members from appointment date (May 31, 2021) onwards was € 141,815 for the financial year. In prior financial year, during the full year at each point in time, the board consisted of just one person, Center Parcs Europe N.V. therefor is exempt from disclosing the Board of Management remuneration according to art 2:383 paragraph 1 of the Dutch Civil Code for the comparison figures.

Supervisory Board

Total compensation for the Supervisory board amounted to € 39,693 in financial year 2020/21 (2020/21: € 28,000).

Note 39 - Audit fees

Information regarding audit fees has not been disclosed, making use of exemption in article 2:382a of Dutch Civil Code. Audit fees have been disclosed in the Annual Report of Pierre & Vacances - Center Parcs Group.

Note 40 - Group Relations

Investment in subsidiary companies

The companies in which Center Parcs Europe N.V. has, direct or indirect, an ownership are:

♦ Center Parcs NL Holding B.V., Capelle aan den IJssel ^*	100 %
♦ Center Parcs Germany Holding B.V., Capelle aan den IJssel ^*	100 %
♦ CP Participations B.V., Capelle aan den IJssel ^*	100 %
♦ Center Parcs Netherlands N.V., Capelle aan den IJssel ^*	100 %
♦ Sunparks B.V., Capelle aan den IJssel ^*	100 %
♦ CPN 2 B.V., Capelle aan den IJssel ^*	100 %
♦ CP Development B.V., Capelle aan den IJssel ^*	100 %
♦ Beheer Recreatiepark Zandvoort B.V. ^*	100 %
♦ Center Parcs Medebach Beteiligungs GmbH, Medebach	100 %
♦ Center Parcs Bungalowpark Bispingen GmbH, Bispingen	100 %
♦ Center Parcs Bungalowpark Eifel GmbH, Gunderath	100 %
♦ Center Parcs Bungalowpark Bostalsee GmbH, Nohfelden	100 %
♦ Center Parcs Holding Bostalsee Unternehmergesellschaft, Cologne	94 %
♦ Center Parcs Bungalowpark Hochsauerland GmbH, Medebach	100 %
♦ Center Parcs Bungalowpark Nordseeküste GmbH, Cologne	100 %
♦ Center Parcs Leisure Deutschland GmbH, Cologne	100 %
♦ Center Parcs Deutschland Kunden-Center GmbH, Cologne	100 %
♦ Group PV / Center Parcs Germany GmbH, Cologne	100 %
♦ Group PV / Center Parcs Service GmbH & Co.KG, Cologne	100 %
♦ PVCP Holding Germany GmbH, Cologne	100 %
♦ Center Parcs Bungalowpark Allgäu GmbH, Leutkirch im Allgäu	100 %
♦ PVCP Immobilien GmbH, Cologne	100 %
♦ Center Parcs Entwicklungsgesellschaft Germany GmbH, Cologne	100 %
♦ CP Holding Belgique S.A.S., Paris	95 %
♦ Center Parcs Ardennen N.V., De Haan	95 %
♦ Sunparks Leisure N.V., De Haan	95 %
♦ CP SP België N.V., Mol	95 %
♦ PV CP Suisse GmbH, Zürich	100 %

^* statements deposited with the Trade Register assuming joint and several liabilities for the debts deriving from juridical acts (Article 403, Dutch Civil Code).

Note 41 - Subsequent events

In Q1 2021/22 the Covid-19 pandemic entered into a fourth wave which has led the various European governments to take new restrictive measures from the middle of December 2021. The Group has thus been forced to reduce the offer, predominantly in the Netherlands (only take-away and delivery of meals and bicycles available for rent) until the third week of January 2022.

Although the 2021/22 financial year will be affected by this new episode of the pandemic, PV SA nevertheless has, based on the New Financing and the Equity Strengthening transaction, liquidity estimated to date sufficient to overcome the fourth wave of the Covid-19 pandemic, and this with downgraded assumptions compared to the current situation. The level of financial impact is expected to be limited.

On February 11, 2022 the company received € 17 million German bridging aid 3 (Überbrückungshilfe 3). The profit and loss statement of the company reflects the appropriate recognition at year end, final calculations are due ultimo 2022.

In accordance with the terms of the New Financing entered into on 19 June 2021 between PV SA and certain financial creditors of the Group, the second tranche of the New Financing, in the principal amount of € 125 million (including the New Group PGE) was made available to the Company (€ 90.5 million) and PV SA (in the case of the New Group PGE) on 1 December 2021.

The drawdown of the second tranche was accompanied, in accordance with the New Financing documentation, by the placement of a second-ranking pledge on the shares of Center Parcs Holding Belgique held by Center Parcs Europe NV.

On March 10, 2022 the group signed into an agreement in relation to the equity strengthening transaction. An element of this agreement is the partial reinstatement of the New Financing obtained in 2021 by the setting up of a senior term loan of € 174 million at the date of completion of the Transaction to the benefit of the Company, as borrower. The senior term loan will have a maturity of 5 years and will bear interest at the same rate as the New Financing, i.e. 3.75 % per annum. The completion of the Transaction and hence the senior term loan is set due at September 16, 2022.

On February 24, 2022, Russian troops started invading Ukraine. In response, multiple jurisdictions, including Germany, Belgium and the Netherlands have imposed economic sanctions on Russia and in certain cases Belarus. The Company has assessed the impact of the invasion and comes to the conclusion that for the financial year ended September 30, 2021 there is no such impact. The company does not exploit parcs in Ukraine, none of its institutional owners have ties to Russia, Russian and Ukrainian guest were at close to zero level already before this invasion started.

Note 42 - Proposed result distribution

The Board of Management proposes to deduct the result for the financial year from the Other reserves. Pending the resolution to be taken by the general meeting of shareholders the result for the financial year 2020/21 has been deducted from the reserves.

Capelle aan den IJssel, May 31, 2022

Board of Management

CP Holding SAS

Mr. O.P. Garaïalde

Mr. M.T.W. Berghuis

Mr. J.H. Schöningh

Supervisory Board

M.D. Haak Wegmann

J.A. van Gijzen

Mr. F. Gervais

OTHER INFORMATION

11 | RESULT APPROPRIATION

According to Article 34 of the Articles of Association, the result is at the disposal of the annual general meeting of shareholders.

12 | BRANCH OFFICES

The Company has one branch office:

•	Center Parcs Europe NV (Belgium), Peer (Belgium)

13 | INDEPENDENT AUDITOR'S REPORT

To: the shareholders and supervisory board of Center Parcs Europe N.V.

Report on the audit of the financial statements 2021 included in the annual report

Our opinion

We have audited the financial statements for the year ended 30 September 2021 of Center Parcs Europe N.V., based in Capelle aan den IJssel.

In our opinion the accompanying financial statements give a true and fair view of the financial position of Center Parcs Europe N.V. as at 30 September 2021, and of its result for the year then ended in accordance with Part 9 of Book 2 of the Dutch Civil Code.

The financial statements comprise:

•	The consolidated and company balance sheet as at 30 September 2021
•	The consolidated and company profit and loss account for the year then ended
•	The notes comprising a summary of the accounting policies and other explanatory information

Basis for our opinion

We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the Our responsibilities for the audit of the financial statements section of our report.

We are independent of Center Parcs Europe N.V. in accordance with the Wet toezicht accountantsorganisaties (Wta, Audit firms supervision act), the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics).

We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter regarding the group's restructuring process and the funding structure

We draw attention to note 2 in the Financial Statements in which the Company discloses among others the restructuring and equity strengthening process of PVCP Group, the funding structure of the Company and the impact on the going concern assumption. Our opinion is not modified in respect of this matter.

Report on other information included in the annual report

In addition to the financial statements and our auditor's report thereon, the annual report contains other information that consists of:

•	The directors' report
•	Other information as required by Part 9 of Book 2 of the Dutch Civil Code

Based on the following procedures performed, we conclude that the other information:

•	Is consistent with the financial statements and does not contain material misstatements
•	Contains the information as required by Part 9 of Book 2 of the Dutch Civil Code

We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the financial statements.

Management is responsible for the preparation of the other information, including the directors' report in accordance with Part 9 of Book 2 of the Dutch Civil Code and other information as required by Part 9 of Book 2 of the Dutch Civil Code.

Description of responsibilities for the financial statements

Responsibilities of management and the supervisory board for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Part 9 of Book 2 of the Dutch Civil Code. Furthermore, management is responsible for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

As part of the preparation of the financial statements, management is responsible for assessing the company's ability to continue as a going concern. Based on the financial reporting framework mentioned, management should prepare the financial statements using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. Management should disclose events and circumstances that may cast significant doubt on the company's ability to continue as a going concern in the financial statements.

The supervisory board is responsible for overseeing the company's financial reporting process.

Our responsibilities for the audit of the financial statements

Our objective is to plan and perform the audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion.

Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material errors and fraud during our audit.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion.

We have exercised professional judgment and have maintained professional skepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included among others:

•	Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
•	Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control
•	Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management
•	Concluding on the appropriateness of management's use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause a company to cease to continue as a going concern
•	Evaluating the overall presentation, structure and content of the financial statements, including the disclosures
•	Evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation

Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing the group audit. In this respect we have determined the nature and extent of the audit procedures to be carried out for group entities. Decisive were the size and/or the risk profile of the group entities or operations. On this basis, we selected group entities for which an audit or review had to be carried out on the complete set of financial information or specific items.

We communicate with the supervisory board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit.

Eindhoven, 31 May 2022

Ernst & Young Accountants LLP

E.M.M. Kuijer