SOLOCAL_Registration Document_2017

FINANCIAL STATEMENTS 6.1 Consolidated financial statements for the years ended 31 December 2016 and 2017

taking exceptional events such as restructuring costs into account. Segment information (Note 2), presents the details of the revenues and recurring EBITDA of “Continued activities” and of “Disposed activities”.

1.3

PRESENTATION OF

CONSOLIDATED FINANCIAL STATEMENTS

1.4

NOTE ON CONTINUED OPERATION

As permitted under IAS 1 “Presentation of Financial Statements”, the Group presents the income statement by type. Operating income corresponds to net income before:

Despite the existence of consolidated equity that is still negative, the Group has not identified any elements of a nature to compromise continuity of operation. After the financial restructuring, which made it possible to bring all of the debt to a bond debt of €398 million, the Group feels that it will be able to handle all of its financial commitments (cf. Note 10.6). Indeed, future cash flows generated by operations, net of investment, as well as available cash will make it possible to ensure continuity of operation in the next twelve months.

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financial income; l financial expenses, l current and deferred income taxes. l

2

EBITDA is an alternate indicator of performance presented in the income statement in operating income and before taking depreciation and amortisation into account. The annual activity report presents the Group’s continued activities as well as recurring EBITDA which corresponds to EBITDA before

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NOTE 2

SEGMENT INFORMATION

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SoLocal Group is developing its activities within two operating segments: Internet and Print & Voice and generated revenue for continued activities of €755.8 million in 2017, its Internet and Print & Voice activities represent respectively 84% and 16%. Internet The Internet activity is driven by the two main digital activities, which are Search Local and Digital Marketing. In 2017, SoLocal Group recorded €635.8 million in Internet revenues for continued activities, representing 84% of Group revenues.

Print & Voice This segment includes the Group’s activities pertaining to the publishing, distribution and sales of advertizing space in the PagesJaunes and PagesBlanches print directories (PagesJaunes, PagesBlanches), as well as other activities of the Group called “Voice”, including telephone directory and reverse directory services. The Print & Voice activities generated €120.0 million in 2017, down -26.6% in 2017 compared to 2016.

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6

2.1

BY BUSINESS SECTOR

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The table below presents a breakdown of the main aggregates by business sector for the periods ending 31 December 2017 and 2016:

As at 31/12/2017

As at 31/12/2016 (1)

(in thousands of euros)

Divested activities Continued activities Consolidated

Divested activities Continued activities

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Consolidated

Non recurring

Non recurring

Recurring

Recurring

Revenues Digital l

764,941 644,940 120,001

9,092 755,849 9,092 635,848

-   -  -

812,277 10,973 801,304

-  -   -

648,729 163,548

10,973 637,756

Print & Voice l Recurring EBITDA

-

120,001

-

163,548

179,970 (2,690)

195,983 (13,323) 170,360 (13,323)

223,875 (2,143)

231,009 (4,991)

Digital l

154,347 25,623

(2,690)

180,494 43,381

(2,143)

187,628 43,381

(4,991)

Print & Voice l  - Restated for the retrospective application of IAS 20 concerning the CIR (cf. Note 5.2.2.2) and Turn over table (cf. Chapter 6 Note 6.2). (1) - 25,623  - -

The non-recurring items heading notably includes impairment losses on goodwill and fixed assets, changes in the fair value of price supplements granted in connection with the acquisition of securities, acquisition costs of equity securities. as well as restructuring costs.

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2017 Registration Document SOLOCAL