SOLOCAL_Registration Document_2017

5

COMMENTS ON THE FINANCIAL YEAR 5.3 Cash flows and net debt

The digital advertizing campaigns (over 20,000 generated in 2017) are managed across a proprietary platform combining the expertise of certified media traders and the efficiency of algorithms that continually work on multiple indicators: key-words, auctions, etc. This unique association of industrialization and customization results in more traffic to the customer's website, online appointments, telephone calls or visits to the store depending on the customer’s choice. This partnership underpins SoLocal’s ambition to achieve annual growth on Google products of +50% over the period 2017-2020. OUTLOOK FOR 2018 The Group confirms for 2018 its outlook of stabilization of recurring EBITDA.

STRATEGIC PARTNERSHIP WITH GOOGLE SoLocal and Google announced a strengthening of their strategic partnership on 23 rd April, 2018. Initiated back in 2013 with the distribution by SoLocal of its first Google offer, this new 2-year agreement will double the resources devoted by both partners to drive online growth for French VSEs, SMEs and networks. Through its online services Booster Site, Booster Contact and Booster Réseaux, SoLocal is offering a whole series of guaranteed performance products to enable businesses to optimize their visibility on Google.

CONSOLIDATED REVENUES IN IFRS 15

Q1 2017 (1)

Q1 2018

Change in continued activities

Discontinued activities

Continued activities Consolidated

Discontinued activities

Continued activities

Consolidated

In millions of euros

REVENUES

178 153

3 3

176 150

168 152

0 0

168 152

-4% +1%

Digital revenues Print revenues

26

-

26

16

-

16

-37%

Q1 2017 figures restated in IFRS 15 (1)

CASH FLOWS AND NET DEBT 5.3

Historically, the Group's liquidity requirements have arisen primarily from the need to maintain working capital, service indebtedness, fund investments and acquisitions and pay taxes, and the Group expects these to continue to be SoLocal's primary requirements in the future. The Group's sources of liquidity consist mainly of the following: cash generated from operating activities; l drawings under debt facilities; and l share capital increases, l

and the Group expects that these sources will continue to be our principal sources of liquidity in the future. The Group’s debt structure significantly changed as a result of the financial restructuring that was completed in March 2017, which resulted in the conversion of a significant portion of the Group’s debt into equity. The Group’s financial leverage ratio, which was 4.7x (as calculated in accordance with the terms of the agreement governing the existing notes) as of 31 December 2016 (pre-financial restructuring), stood at 1.7x as of 31 December 2017.

CASH FLOWS 5.3.1

The table below shows the Group’s cash flows (for continued activities) for the years ended 31 December 2016 and 2017:

Consolidated cash flow information

For the year ended 31 December

2016 (1) (restated)

2016 99.7 (63.8)

2017 30.1 (40.7)

(in millions of euros)

Net cash from (used in) operations

101.6 (62.0)

Net cash from (used in) investing activities Net cash from (used in) financing activities

8.5

1.9

1.9

Restated for the retrospective application of IAS 20 concerning research tax credits and Turnover Tables (1)

140 2017 Registration Document SOLOCAL