SOLOCAL_Registration Document_2017

6

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

In 2017, this heading totals €13.3 million, mainly covering exceptional staff costs incurred to secure business continuity and the departure costs of non-replaced persons and elements relating to the change of governance.

In 2016, this item totaled €5.0 million covering a litigation provision and also exceptional staff costs.

2.2

BY GEOGRAPHIC REGION

As at 31/12/2017

As at 31/12/2016 (1)

(in thousands of euros)

Revenues France l Others l

764,941 741,119

812,277 788,689

23,822

23,588

Assets

724,208 597,054 17,620 109,534

769,339 631,994 17,875 119,471

France l Others l

Unallocated l

Restated for the adjustment to the Turnover Tables (cf. Chapter 6 Note 6.2). (1)

NOTE 3

SCOPE: MAIN CHANGES AND DISPOSAL RESULTS

3.1

CONSOLIDATION

3.2

CHANGES IN THE SCOPE

OF CONSOLIDATION

Subsidiaries which are controlled by the Group, directly or indirectly, are fully consolidated. Companies not controlled by the Group but over which the Group exercises significant influence (generally corresponding to an ownership interest of 10% to 50%) are consolidated using the equity method. The existence and effect of potential voting rights exercisable or convertible at the balance sheet date are taken into consideration when determining control or significant influence exercised over the entity. In accordance with IFRS 5, the assets and liabilities of controlled entities that are considered as being held for sale are reported on a separate line in the balance sheet. Profits or losses of discontinued operations are reported on a separate line of the income statement. IFRS 5 defines a discontinued operation as a component of an entity comprising cash flows that can be clearly distinguished from the rest of the entity, that has either been disposed of, or is classified as held for sale, and represents a separate major line of business or geographical area of operations. Material inter-company transactions and balances are eliminated in consolidation.

2017 During the 2017 financial year, the Group divested two non-strategic activities: site avendrealouer.fr, activity of diffusion of the classified l advertisements of the entity PagesJaunes SA. The sale of this business on 30 November 2017 was made on the basis of a sale price of €19.8 million as at 30 November 2017. This amount is subject to change after the sale. on the basis of adjustment criteria agreed between the parties. The impact on the consolidated net result of this disposal in the Group’s financial statements amounts to €11.9 million; all of Chronoresto’s shares were sold on 31 October 2017 for €1. l The net impact of this sale in the Group’s financial statements amounts to -€5.3 million on the consolidated net income. Divested business information has been included in the segment information in 2017 and 2016 (Cf. Note 2). 2016 On 1 January 2016, merger of Horyzon Média World Wide with QDQ Media by take-over Effilab Dubaï was created with a 51% stake held by Effilab. On 7 March 2016, Effilab Australie was created with a 51% stake held by Effilab.

156 2017 Registration Document SOLOCAL