SOLOCAL_Registration Document_2017

COMMENTS ON THE FINANCIAL YEAR 5.2 Financial review

The financial statements published by the Group as at 31 December 2017 are made up as follows.

Consolidated income statement for continued activities for years ending 31 December 2017 and 31 December 2016

As at 31 December 2017

As at 31 December 2016 (1)

(in millions of euros)

Activites

Activites

1

Dive- sted

Conti- nued Continued

Dive- sted

Conti- nued Continued

Consoli- dated

Consoli- dated

Non recur- ring

Non recur- ring

Recur- ring

Recur- ring

 Total

 Total

2

Revenues

764.9

9.1 755.8 755.8

-

812.3 11.0 801.3 801.3

-

Net external expenses

(201.5) (383.5)

(6.2) (5.6)

(195.3) (377.9)

(192.4) (367.5)

(2.9)

(215.8) (372.6)

(7.4) (5.7)

(208.4) (366.9)

(207.4) (362.9)

(1.0) (4.0) (5.0)

Staff expenses

(10.4)

EBITDA

180.0 (2.7)

182.7 196.0 (13.3)

223.9 (2.1)

226.0 231.0

3

Depreciation and amortization

(53.5)

10.7 (64.2)

(64.2)

-

(59.2)

(2.6)

(56.6)

(56.6)

-

OPERATING INCOME

126.5 8.0 118.5 131.8 (13.3)

164.6 (4.7)

169.4 174.4

(5.0)

Net gain from debt restructuring at 13 March 2017

265.8

- - - -

265.8

-

265.8

-

- - - -

-

-

- - - -

Financial income Financial expenses FINANCIAL INCOME INCOME BEFORE TAX Corporate income tax

0.4

0.4

0.4

- -

1.4

1.4

1.4

4

(28.6) 237.6

(28.6)

(28.6)

(75.2) (73.8)

(75.2) (73.8)

(75.2) (73.8)

237.6 (28.2)

265.8

364.1 8.0 356.1 103.6 252.5

90.8 (4.7)

95.5 100.5

(5.0)

(28.6)

(1.5)

(27.1)

(44.1)

17.0

(41.8)

(0.1)

(41.8)

(43.5)

1.7

5

INCOME FOR THE PERIOD (3.3) 2016 restated for the retrospective application of IAS 20 concerning research tax credits (see Note 5.2.2.2) and Turnover Tables. 2015 (1) (see Note 6.2 in Chapter 6) not restated for these elements. Non-recurring items of continued activities primarily concern related to new corporate governance, and especially in 2017 items exceptional personnel expenses for securing the continuity of the related to the financial restructuring. business, severance costs for people not being replaced and items 335.5 6.6 329.0 59.5 269.5 49.0 (4.8) 53.8 57.0

6

Details on the revenues and recurring EBITDA of continued activities, as at 31 December 2017 and 31 December 2016

7

As at 31 December 2017

As at 31 December

2016 Change 2017/2016

(in millions of euros)

Internet

635.8 120.0 755.8 84.1% 170.4

637.8 163.5 801.3 79.6% 187.6

-0.3%

Print & Voice REVENUES

-26.6% -5.7%

8

    Internet revenues as % of total revenues

Internet

-9.2%

Print & Voice

25.6

43.4

-41.0% -15.2%

RECURRING EBITDA

196.0

231.0

As % of revenues     Internet     Print & Voice

26.8% 21.3%

29.4% 26.5%

133

2017 Registration Document SOLOCAL