SOLOCAL_Registration Document_2017

SOLOCAL, LOCAL DIGITAL PARTNER TRUSTED BY BUSINESSES 1.2 Business overview

THE GROUP’S COMPETITIVE STRENGTHS 1.2.1

We believe that SoLocal Group has the following key strengths:

contribute to the growth of its audience and the strengthening of the digital presence of its customers. Lastly, the Group sees its local sales coverage as a key differentiating factor in its relationship with local customers. Its regional presence, through sales and customer support teams, represents a real barrier preventing its competitors from entering the market. MUTUALLY BENEFICIAL PARTNERSHIPS WITH MAJOR GLOBAL INTERNET PLAYERS The Group has leveraged its position as the leading French local advertizing and digital marketing company, by developing strong and mutually beneficial partnerships with major global Internet players such as Google, Bing (Microsoft), Apple and Facebook, around local content, local search and campaigns on social media. The Group capitalizes on the relevance and accuracy of its data by developing close relationships with its partners. The Group provides local content (for example, addresses, business descriptions and opening hours) and in return benefits from a deported audience, and therefore enhanced reach, as well as high quality user data. Moreover, through these partnerships, the Group is able to leverage its partners’ technologies, such as Google AdWords or BingAds, in the packages or products offered to its customers. This has enabled the Group to develop turnkey digital solutions tailored to SMEs and large networks. These high added-value offerings which integrate its partners’ technologies, generate significant gross margins. They are based on the cutting-edge expertise developed by the Group, particularly in terms of algorithm optimization and real-time selection of optimized key words for Search Engine Optimisation. These partnerships are mutually beneficial. Indeed, SoLocal is a growth accelerator for its major partners thanks to its wide local sales presence, local customer services and simplified, packaged solutions. The partnership with Google has just been renewed and extended for two years from 1 April 2018. SoLocal Group believes that the benefits derived from its partnerships provide it with a distinct advantage competitive in the industry. HIGHLY SCALABLE TECHNOLOGY PLATFORMS The Group’s digital offerings can be deployed on a large scale to meet the growing needs and complexities of its large and diverse customer base. The Group markets products and services among the five service lines in its range, in order to offer a package of products and services that is fully adapted to customer needs. From the simple updating of information for a business on the Internet to the tailored development of digital presence management solutions for larger customers, the Group believes that its range of products and services can easily be customized to meet the specific needs of each customer, of all sizes and from all industries.

A LARGE DIGITAL SERVICES GROUP WITH A STRONG MARKET POSITION

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SoLocal is a digital services company with high growth potential, which recorded nearly 2.4 billion visits on its main media sites in 2017 (excluding the audience of the AVendreALouer.fr site), which represented an audience growth of around 2.4% versus 2016. Visits via mobile phones (excluding tablets) accounted for 40% of total visits in 2017. The Group’s mobile applications (PagesJaunes and Mappy) are used on average by around two million users per day. The Group’s product and service offerings benefit from the significant reach of its media, with an average reach in 2017 of 55% of all Internet users in France (according to Médiamétrie Nielsen). In 2017, the Group started to reorganise its business activities in order to offer a full range of digital services to its customers in accordance with the new digital environment and its clients’ expectations. For the financial year ended 31 December 2017, the Internet revenues amounted to 84.1% of the Group’s total revenues, compared to 79.6% for the financial year ended 31 December 2016. A UNIQUE POSITIONING COMBINING RICH LOCAL CONTENT, POWERFUL DATA, LOCAL AND NATIONAL COVERAGE AND STRONG PARTNERSHIPS The Group believes that it is the only player on the French market to offer customers a complete omni-channel range of web-based services, technology services and data (with rich content updated daily, geolocalized and intent data and proprietary programmatic technologies), as well as a widespread local presence. The Group’s ability to deliver value to its customers lies in the richness of its data, which enables it to be highly effective and relevant in its offerings. The Group has significant strengths in local digital communication, with more than 5.5 million points of sale localized via its platforms, images of over 4.2 million businesses and more than 100 million monthly expressions of local needs from its users. Those strengths contribute to increase the visibility of the Group's clients on its media (PagesJaunes, Mappy) but also on other media though retargeting solutions that expand the presence of clients beyond the reach of SoLocal's proprietary media. These rich data assets and the Group's related knowhow allow it to help customers advertize to a specifically targeted audience, increasing the effectiveness of their advertizing actions. In 2017, the number of total leads with local professionals and businesses per user (through the use of the Group’s platforms or through its partnerships) increased by 5% versus 2016. In addition, the data available to the Group enables it to be the reference local content provider of its main partners, global players in the Internet sector, such as Bing (Microsoft), Google, Apple and Facebook. These partnerships have been established and maintained by the Group for seven, four, three and one years respectively. The Group benefits from these partnerships, which

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2017 Registration Document SOLOCAL