SOLOCAL_Registration Document_2017

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SOLOCAL, LOCAL DIGITAL PARTNER TRUSTED BY BUSINESSES 1.2 Business overview

CUSTOMERS 1.2.5

In 2017, out of the more than 4.2 million local businesses listed in the Group’s databases in France, an average of nearly 469,000 (annual average number of customers in the reference period who subscribed to an Internet product) were Group customers. The Group’s customers break down as follows: Home: businesses in the construction, renovation, maintenance l and emergency repair industries for whom advertizing is of great importance. Print retains a significant share in this market segment; Retail: merchants with transaction potential (e.g. restaurants, l beauty salons and accommodation businesses), local businesses located in city centres (e.g. florists, wine shops, dry cleaners and neighbourhood grocery stores), sports clubs, cultural institutions and chains (e.g. supermarkets, clothing stores and DIY stores); A segment that is already active in digital advertizing; Health & Public: public authorities (e.g. public institutions, social l assistance, local administration and chambers of commerce), education (e.g. driving schools, professional training institutions, primary, secondary and higher education, individual tutoring), liberal professions (e.g. lawyers, accountants, architects, Statutory Auditors, surveyors, veterinarians) and health professionals (e.g. doctors, pharmacies, health institutions and services). This market segment is characterized by sectors that engage in little advertizing, in some cases due to regulatory restrictions; nonetheless, it is a market of significant potential with respect to appointment scheduling and website development; Services: automobile/motorcycle sales and maintenance (e.g. l dealers, mechanics, technical control, body shops, auto centers and specialists), services to individuals (taxis, undertakers, services to individuals, fortune telling), real estate (real estate agents, notaries, inspectors) and banks and insurance companies (banks, insurance companies, private health insurance, brokers). This market is currently transitioning from print advertizing to digital advertizing;

BtoB: services to businesses (e.g. photocopying and logistics l services, polling organizations), wholesale (e.g. construction materials and office furniture), industry (e.g. printing and dental prosthetics), construction and public works (e.g. public works and plumbing equipment), agriculture (e.g. farmers) and crafts (e.g. furniture manufacturers, upholsterers and decorators). This market segment focuses in particular on local digital communication; International: international customers (such as, French groups l with international networks). This market segment focuses on large accounts using presence management solutions (using the BRIDGE platform). One of the key strengths of the Group is its local presence in the Digital Services market. It takes advantage of its local teams who are close to customers. The Group intends to adapt its level of services and its customer experience more systematically to the various profiles of its customers across all segments. It aims to reinvent its “go-to-market” strategy by developing a multi-channel approach based on a more heavily digitalized sales force. Large accounts already benefit from the expertise of an extensive field sales force, which counted 1,249 field sales representatives (including field sales representatives dedicated to the Group’s international customers) as of 31 December 2017. Relationships with small and medium-sized businesses and the acquisition of new customers in this segment will be handled through telemarketing teams, which comprise 762 telemarketing representatives (including those dedicated to the Group’s international customers) as of 31 December 2017. VSEs will be managed through a self-service platform directly on the Group’s websites. In 2018, the Group will focus in particular on telesales in a bid to increase its sales through improved commercial relationships and coaching. In addition, the Group has established nine premium telesales teams to target high ARPA customers. This first initiative proved successful as the sales performance of the members of these teams has improved significantly.

AUDIENCE 1.2.6

The Group’s business is based on very large audiences, with steady growth in business leads, thanks to its proprietary media (PagesJaunes, Mappy, Ooreka), which represent a constant source of intent-driven data, as well as privileged partnerships with key global Internet players who recognize the quality and richness of the Group’s local content. Audiences include (1) direct audiences on the PagesJaunes digital media from the users’ direct access to PagesJaunes digital media (direct access and brand research on a search engine), audience from search engines thanks to search engine optimization and

from affiliate partners (such as Free and l’Internaute), (2) indirect audiences to PagesJaunes deported content hosted by other platforms (such as Bing and Apple). In order to continue to grow its audience, the Group wants to improve the user experience (UX) and the user interface (UI) on its media. It plans to invest €11 million in capital expenditure in 2018. The Group’s target is to increase its total audience (both direct and through partnerships) by 6% in 2018 over 2017 and to double the number of accounts over this period.

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2017 Registration Document SOLOCAL