SOLOCAL_Registration Document_2017

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SOLOCAL, LOCAL DIGITAL PARTNER TRUSTED BY BUSINESSES 1.2 Business overview

For example, the Group’s proprietary media, PagesJaunes and Mappy, give customers access to a very large audience. In addition, the Group offers major network account management solutions for their presence via the BRIDGE platform, which integrates features such as local content management, multi-news distribution, e-reputation management and AdWords and Facebook campaign management. The Group’s customers can also benefit from a wide range of programmatic tools used to implement advanced visibility solutions, performance solutions and digital advertizing on the Group’s proprietary media, on its partners’ websites or on local media. They also have access to a full range of media ranking tools allowing businesses to appear ahead their competitors on the Group’s online media and on its partners’ websites. Finally, the Group offers tailor-made websites, from the simplest to the most complex, produced industrially, to customers wishing to establish their own independent Internet footprint. The Group can use each of these platforms for its customers, jointly or independently, to create a single point of contact for them that addresses all their digital needs. The Group believes that its cloud integration capabilities enable it to further leverage its technology platforms and their scalability. ACTIVITIES GENERATING RECURRING REVENUES Since 2017, the Group has developed several product packages based on automatic renewal and upsell strategies. In addition, it has strengthened the productivity and efficiency of its sales force in order to improve average revenue per advertizer (ARPA) and control customer mix. In 2017, approximately 10% of the Group’s sales were generated through automatic renewal representing more than 25,000 customers. The Group believes that its new customer-centric approach, based on a lifetime management of the client, is key to developing long-term relationships with customers. It plans to expand this approach across its five service lines in the near future, to strengthen recurring revenues and generate stable cash flows. The Group also focuses on retaining high value accounts through dedicated presence management solutions. Moreover, its large and diverse customer base combined with recurring revenues mean that future revenues and cash flow generation can be forecast with a high degree of predictability.

ATTRACTIVE FINANCIAL PROFILE THANKS TO SIGNIFICANT POTENTIAL SAVINGS AND SCALABILITY OF ITS PLATFORMS The Group has a strong financial profile, combining high EBITDA margins with strong cash flow generation. As at 31 December 2017, the Group’s EBITDA margin reached 25.9%, a rate which reflects the Group’s ability to monetize its audience. The transformation project should allow the Group to operate with significantly reduced fixed costs, become more agile and return to profitable growth from 2019 onwards. The cost saving is estimated at around €120 million (full year) from 2020 compared with the 2017 baseline. Thanks to its technology platforms and their scalability, the Group believes that it can further improve its range of products and services, enabling it to maximize return on investment. The Group’s business model is highly scalable and allows it to serve new customers with a limited increase in costs, which translates into strong operational leverage and the potential for further margin improvement. The management of the Group is underpinned by a completely new Board of Directors, new governance and also a recently renewed management team whose interests are fully aligned with those of stakeholders. In addition to the expertise of the new members having recently joined the team, the Executive Management benefits from the experience of members who have been in the Group for a number of years. Éric Boustouller, SoLocal’s Chief Executive Officer, joined the Group in October 2017. He has developed a solid experience in the digital field thanks to his positions as Chairman and Chief Executive Officer of Microsoft France, Vice-Chairman of Microsoft International and Vice-Chairman of both Microsoft Corporation and Microsoft Western Europe in charge of sales, marketing and services in 14 countries. The Group believes that the leadership of its existing management team, combined with the recent contribution of new hires, such as Jean-Jacques Bancel, the new Chief Financial Officer (formerly CFO at SGD Pharma, Ethypharm and ASF), Arnaud Defrenne, the new Chief Technology Officer (previously Digital Chief Technology Officer at L’Oréal) and Pascale Furbeyre, Chief Marketing Officer (formerly at Lesfurets and BforBank), will help further improve its results, its commercial offering and its competitive position on its markets. SEASONED MANAGEMENT TEAM WITH RECOGNIZED EXPERIENCE AND DIGITAL EXPERTISE

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2017 Registration Document SOLOCAL