SOLOCAL_Registration Document_2017

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

2.3

CASH AND CASH EQUIVALENTS,

2.5

FINANCIAL INCOME

MARKETABLE SECURITIES AND TREASURY SHARES

The net financial income or loss is mainly determined by: dividends; l the interest expense on debt; l the interest paid on debtor and creditor current accounts with l Group subsidiaries; gains and losses on treasury shares held under the liquidity l contract; income and expenses associated with short-term investments, l including those held under the liquidity contract; allocations to and reversal of impairment on securities and l receivables.

Cash and cash equivalents at 31 December 2017 consisted of immediately available cash assets and short-term investments with a maturity of no more than three months when acquired. Any provisions on treasury shares are based on their average price during the last month of the year.

1

2.4

PROVISIONS FOR RISKS AND CONTINGENCIES

2

French law requires a payment to employees upon retirement that is proportional to their length of service and final salary. The actuarial gains and losses on post-employment benefits are determined using the corridor method, which spreads gains and losses that exceed 10% of the greater of the value of the commitment/obligation or the value of hedging assets over the remaining service lives of plan participants. In 2017, provisions for retirement benefits and long-service awards were fully restated. These amounts released follow the transfer by SoLocal Group on 1 January 2017 of its employees in the GIE SoLocal (economic interest group), excluding the corporate officer. The other provisions for the risks to which SoLocal Group is exposed are based on the best possible estimates.

2.6

CORPORATION TAX

3

Under the tax consolidation agreement between SoLocal Group and its subsidiaries within the tax consolidation group, SoLocal Group, as the head of the tax group, recognises any consolidated tax gain as income for the year. At 31 December 2017, the tax group in addition to the SoLocal Group, the head of the tax group, consolidated 10 companies as at 31 December 2017.

4

5

NOTE 3.

ADDITIONAL INFORMATION ON THE BALANCE SHEET

AND INCOME STATEMENT

6

3.1

TANGIBLE AND INTANGIBLE FIXED ASSETS

7

Gross

31/12/2016 Acquisition

Reduction

31/12/2017

Software Fittings

424

-

- - - -

424

8

12,489

283

12,771

IT equipment

158

-

158

Furniture

4,064

23

4,087

Fixed assets in course of construction

361

-

243 243

118

GROSS TOTAL

17,497

306

17,559

Amounts released

Amortisation

31/12/2016 Allowances

31/12/2017

Software Fittings

419 775

5

- - - - -

424

1,270

2,045

IT equipment

29

49

78

Furniture

259

405

664

TOTAL AMORTISATION

1,482

1,729

3,211

191

2017 Registration Document SOLOCAL