SOLOCAL_Registration Document_2017

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

The Group has a single accounting system that standardises the reporting of all consolidated items, including off-balance sheet commitments. All of the consolidated Group entities have adopted this system. The Group prepares its consolidated financial statements in compliance with IFRS standards (European regulation 1606/2002 of 19 July 2002). The consolidated accounting documents are prepared in accordance with local accounting principles and are restated to comply with Group and IFRS standards. The Group’s Finance department sends out memoranda specifying the year-end closing process and timetable. Each SoLocal Group subsidiary adapts these processes and timetables as necessary. 5.5 Scheduling of year-end work at Group level In order to meet accounting deadlines, and enable the Board of Directors to publish consolidated financial statements in February, the Group has established a detailed planning programme for its year-end accounting work. This programme includes: budget monitoring processes; l preparation of pre-closing accounts; l documented closing processes; l the anticipated treatment of estimates and complex accounting l transactions. The progress that the Group has made in preparing year-end accounts can largely be attributed to greater co-ordination between Group divisions and functions, more accurate forecasts, better control over financial processes, and better preparation and speedier execution of account-closure processes. 5.6 Financial communication Other than the Chief Executive Officer, the only people authorised to communicate financial and strategic information outside of the Company are the Chief Financial Officer, the Financial Performance Officer, the Head of Investor Relations and the Head of External Communication and Press Relations. SoLocal Group’s Finance department, in collaboration with management control and the Legal department, is responsible for drawing up the following periodic and permanent information documents and distributing them to regulatory authorities, the financial market authority (the AMF) and other intended recipients: periodic financial press releases (quarterly and annual results) l and ad hoc press releases (e.g. to announce acquisitions, divestments, financing transactions, changes in governance or a strategic partnership); presentations at meetings with financial analysts or investors l and press conferences; where appropriate, quarterly financial information; l semi-annual and annual financial reports; l

the Registration Document; l presentation for the General Shareholders’ Meeting. l These documents are reviewed by the Financial Information Committee (see Section 2.3.1). SoLocal Group strives to provide information that is easy to understand, relevant and reliable, and to comply with stock market regulations and sound principles of corporate governance. 6 Financial risks linked to climate change The risks linked to the effects of climate change and the measures taken by SoLocal Group to reduce them are presented in the Corporate Social Responsibility report. 7 Information and communication All of the Group’s press releases and the major regulatory documents are posted on the Group’s intranet, which is accessible to all employees. Collaborative tools and other applications available on the Group intranet also ensure efficient distribution of information to everyone throughout the Group. 8 Outlook For 2018, SoLocal Group will continue to provide internal control and risk management support to operational entities and to empower them in these areas.

MAIN RISKS AND UNCERTAINTIES

XVI.

Foreign exchange risk l See Note 11 to the consolidated financial statements. Liquidity risk l See Note 11 to the consolidated financial statements. Interest rate risk l See Note 11 to the consolidated financial statements. Credit counterparty risk l See Note 11 to the consolidated financial statements. Equity risk l See Note 11 to the consolidated financial statements.

NON TAX-DEDUCTIBLE

XVII.

EXPENDITURES Pursuant to Article 223 quater of the French Tax Code, we hereby inform you that the expenditures and expenses described in paragraph 4 of Article 39 of said Code totalled €59,126 in 2017 and that the corresponding tax was €20,357.

220 2017 Registration Document SOLOCAL