SOLOCAL_Registration Document_2017

COMMENTS ON THE FINANCIAL YEAR 5.5 Investments

INVESTMENTS 5.5

The table below sets out the Group’s capital expenditure for the years ended 31 December 2016 and 2017:

For the year ended 31 December 2017 2016 (1) (restated)

2016 812.3 (69.1) 8.5%

1

Revenues

764.9 (53.9) 7.0%

812.3 (69.1) 8.5%

Purchases of tangible and intangible fixed assets

As a percentage of revenues

Restated for the retrospective application of IAS 20 concerning research tax credits and Turnover Tables (1)

2

the Group’s common technological base, the improvement of l internal processes, including notably the development of offerings and marketing methods, and the optimization of accounts and content. In 2018, the Group intends to continue to invest in the Local Search and Digital Marketing business lines, with investments focused on the development of the Group's media and products with high growth potential. The Group’s investments are financed with available resources and are regularly reviewed by management.

The Group’s investments in 2017 were primarily focused on the following: Local Search: development of contributions (accounts, content), l enhancement of the user experience, transactional features, appointment booking, restaurant booking), and development of mobile applications; Digital Marketing: investments in the Group's programmatic l platforms, sites, and presence management; and

3

4

5

OVERVIEW AND CURRENT TRENDS 5.6 AND OBJECTIVES

6

As previously announced, the outlook for 2018 for the Group is a stabilization of its recurring EBITDA. In the medium term, the Group targets double digit growth in digital revenues in 2020, double digit growth in recurring EBITDA from 2019 onwards and EBITDA to cash conversion trending to 50% in 2020.

7

8

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2017 Registration Document SOLOCAL