SOLOCAL_Registration Document_2017

6

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

holds, directly or indirectly, at least 95% of the share capital and which agreed to join this group. The tax consolidated subsidiaries as at 31 December 2017, are PagesJaunes, SoLocal Marketing Services, NetVendeur, Mappy, PagesJaunes Outre-Mer, ClicRDV, Fine Media, Leadformance, Cristallerie 5 and Retail Explorer. A tax consolidation gain of €54.4 million was recognised in 2017. The net Corporation Tax debt for 2017, after the application of tax credits, is €5.4 million.

3.10

CORPORATION TAX

Tax consolidation

On 3 December 2004, SoLocal Group opted to comply with the rules that apply to tax groups pursuant to Articles 223A et seq. of the French Tax Code, for a renewable period of five years as of 1 January 2005. In doing so, SoLocal Group made itself solely liable for the Corporation Tax payable on all of the earnings of the tax consolidation group formed by itself and the companies in which it

BALANCE SHEET POSITION

Financial year ended 31 December

2017 9,927

2016

(in thousands of euros)

Asset tax integration current accounts

52,977

State – Corporation Tax claim

-

-

Liability tax integration current accounts

(2,422)

(2,230)

State – Corporation Tax due

5,362

3,789

NET BALANCE SHEET POSITION – ASSETS/LIABILITIES

12,868

54,536

Group Corporation Tax due after tax credit NET GROUP CORPORATION TAX DEBT

- -

- -

Tax consolidation current accounts with subsidiaries show a net receivable of €9.9 million at 31 December 2017. This balance consists of the share of 2017 Corporation Tax owed by each subsidiary under the tax consolidation agreements.

Underlying and deferred tax position (in thousands of euros) Future tax debt relief Provision for lump-sum retirement payments

Gross

- -

Hidden gain on mutual funds Special depreciation allowances

1,008 1,008

TOTAL

The expenses recorded in 2017 and in previous years represent an amount of €1 million as at 31 December 2017, i.e., based on the Corporation Tax rate voted to date for the respective periods, a reduction of the future tax debt of €282 thousand.

In 2017, SoLocal Group used its CICE tax credit to obtain a €2.9 million bank loan. The cash received increased debt by a corresponding amount. The claim on the government was reclassified as a claim on the bank.

198 2017 Registration Document SOLOCAL