SOLOCAL_Registration Document_2017

6

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

14.2

CONTRACTUAL OBLIGATIONS AND OFF-BALANCE-SHEET COMMITMENTS

Significant off-balance-sheet commitments are as follows:

2017

2016 Total

Contractual obligations

Total

Payments due per period

In more than 5 years

Less than 1 year

In 1 to 5 years

(in thousands of euros)

Operating leases

138,267

25,720

70,092

42,455

141,179

Paper, printing, distribution

1,119

1,119

-

- -

1,601

Other services

16,364

11,962

4,402

13,051

Commitments for purchases of goods and services

17,483 155,750

13,081 38,801

4,402

-

14,652 155,831

Total

74,494

42,455

The “Other services” section includes all firm orders placed as at 31 December 2017 for goods and services deliverable from 2018.

As at 31 December 2017, the Group’s commitment under all leases amounted to €138.3 million, of which €25.7 million is payable in under one year.

Leases PagesJaunes has leased land, buildings, vehicles and equipment. These leases are due to expire on different dates over the next five years. The Management considers that these leases will be renewed or replaced on expiry by other leases under normal operating conditions. The rental charge recorded in the income statement in respect of operating leases amounted to €19.0 million in 2017 (€19.9 million in 2016). In 2014 and 2015, SoLocal Group subscribed to commercial lease contracts for future completion signed with two separate investors, for premises located in the towers of a real estate complex currently being rehabilitated called Citylights, located in Boulogne Billancourt. The lease contracts for future completion were irrevocably signed for a firm period of 10 years, as SoLocal Group has renounced its 3-year termination faculty until the end of the firm period of the lease contracts. The lease contracts took effect on 9 May 2016, with an expiry date for each one of the lease contracts set to 8 May 2026. These leased premises have a surface area of 35,702 m 2 , for a commitment for these contracts over the remaining period starting on 1 January 2018, of €105.3 million (excluding expenses and rent indexing). Security deposits for an amount of 4.1 million were paid subsequent to moving into the premises at Boulogne-Billancourt.

Commitments for purchases of goods and services

Production of directories For the production and distribution of its printed directories, the Group entities enter into contracts with their paper suppliers, printers and distributors. These contracts may be annual or multi-annual. A contract has been concluded with an exclusive printer covering the editions of the years 2014 to 2016. This contract does not entail any volume commitment. A twelve-month contract effective 1 February 2016 was signed with a paper supplier, specifying the rates payable for the supply by the printer of directory paper, with no volume commitment. The printer obtains his supply and his purchases of paper following these conditions. Only firm orders placed as at 31 December 2017, both with paper suppliers and with printers and distributors, were reported as off-balance-sheet commitments at that date, for a total amount of €1.1 million. Other commitments given The bank and bond loans are indirectly guaranteed by a pledge of the securities of PagesJaunes SA held by SoLocal Group.

180 2017 Registration Document SOLOCAL