SOLOCAL_Registration Document_2017

FINANCIAL STATEMENTS 6.2 Annual financial statements for the financial years ended 31 December 2016 and 2017

5.1 The Financial Information Committee The preparation and control of financial information are organised in a manner that is consistent with SoLocal Group’s management organisation and systems. To improve the quality and reliability of financial information, a system for managing and monitoring financial information, based essentially on the work of the Financial Information Committee, has been set up. This Committee is responsible for ensuring the integrity, accuracy, quality and consistency of SoLocal Group’s financial information and that this information complies with applicable legal and regulatory requirements and professional standards. It reviews all financial information that must be publicly disclosed, prior to its examination by the Audit Committee and the Board of Directors. This review covers, among other things, press releases containing financial information and presentations to financial analysts. The Committee is involved in Group procedures for preparing and validating financial information. It is chaired by the Chief Executive Officer and Chief Financial Officer of the Group its members notably include those responsible for financial performance and communication. The Committee was established in July 2004 and met six times in 2017. 5.2 Accounting and management control The Operational Finance department, the Financial Performance department and the Corporate Finance department perform essential tasks to ensure that SoLocal Group’s financial information is consistent. These departments report to the Group’s Chief Financial Officer. These tasks include: preparing SoLocal Group company and consolidated financial l statements within the time constraints of financial markets, legal and regulatory requirements and contractual obligations; managing the budgeting and forecasting process and preparing l the monthly management report as quickly as possible, while ensuring that data is consistent; preparing the documents necessary to communicate financial l results and to enable SoLocal Group’s management to prepare its management report; designing and implementing SoLocal Group’s accounting and l management methods, procedures and standards; identifying and overseeing any changes to SoLocal Group’s l accounting and management information systems that may be necessary. 5.3 The unified accounting and management reporting system The Group’s business management cycle is composed of four basic components: the three-year strategic marketing plan; l

a. The strategic marketing plan Each year, SoLocal Group prepares a strategic marketing plan for the coming three years. This plan takes into account the Group’s strategic priorities and any changes in market trends, business segments or the competitive environment. b. The budget process The budget process covers SoLocal Group and its subsidiaries. It involves the following steps: in the autumn, each entity updates its budget for the current year l and prepares next year’s budget, which is broken down month by month; in the spring, the initial budget forecast for the year is updated l and this updated budget is used to prepare the strategic marketing plan; in the summer, the budget for the second half of the year is l updated on the basis of the results of the previous six months. To improve the management and monitoring of performance, an ongoing reforecasting process was implemented in 2007. c. Monthly reporting Monthly reporting is a major component of the financial information and control system. It is the main tool that SoLocal Group’s management uses to monitor trends and performance and make decisions going forward. This reporting comprises several documents that are prepared by the Financial Performance and Operational Finance departments and communicated to the management of SoLocal Group. Monthly reporting includes quantified data, commentary on trends, and performance indicators. The SoLocal Group Financial Performance and Operational Finance departments use a unified consolidation tool to ensure that budgeted figures, actual figures and forecasts are reported in a consistent and uniform manner. d. Business and financial performance reviews Quarterly business performance reviews with all subsidiary senior managers and monthly financial reviews with Financial departments are a key component of SoLocal Group’s management and control system. Their main objective is to ensure that the actions undertaken are consistent with Group priorities and long-term goals. In 2016, the scope of these reviews was adapted to the new Product-Line based organisation set up in 2015.

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5.4 Shared Group accounting methods and framework

The Group prepares its provisional and actual consolidated accounts in accordance with the “unification principle”. This involves: uniform accounting methods, standards and consolidation rules; l standardised presentation formats; l the use of a Group-wide consolidation application. l

the budget process; l monthly reporting; l business and financial performance reviews. l

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2017 Registration Document SOLOCAL