SOLOCAL_Registration Document_2017

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SOLOCAL, LOCAL DIGITAL PARTNER TRUSTED BY BUSINESSES 1.3 Overview of the sector

THE RISE IN E-COMMERCE AND ONLINE PAYMENTS

INCREASED DEMAND FOR CUSTOMER RELATIONSHIP MANAGEMENT (CRM) SOLUTIONS

The Group believes that its offers of online transactions will enable it to benefit from favourable trends in e-commerce in Western Europe. According to a recent report by an independent market research firm, e-commerce revenues in Western Europe are set to reach a CAGR of roughly 11% between 2017 and 2022, reaching $429 billion, or about 12% of the overall size of the retail market in this geography. The chart below shows the projected growth in Western European e-commerce revenues from 2017 to 2022, expressed in billions of US dollars, as well as Western Europe’s projected market share of the total market.

The expansion of the Group’s digital offerings to companies in adjacent areas, such as CRM solutions, is increasing the size of its addressable market to include the growing market for CRM applications. In Western Europe, SaaS solutions are expected to dominate the CRM software market, continually enhancing the user experience, including the user experience of smartphone and consumer web applications. VSEs and SMEs will invest more strongly in CRM applications as applications become more flexible, affordable and easier to use. According to a third-party market data provider, the French CRM applications market is among the largest in Western Europe, and is set to grow at a CAGR of approximately 6% between 2016 and 2021, bringing revenues to approximately $1.1 billion. THE MOVE TO SAAS AND THE CLOUD The Group’s overall shift to a subscription-based revenue model and the increasing mix of software within its digital offering aligns its proposition with the fast-growing SaaS and cloud software market. A recent third-party market study forecasts that this market will grow at a CAGR of 20% in Europe, the Middle East and Africa (EMEA) between 2016 and 2021 as a result of increasingly cloud-first strategies across all IT buyers.

CAGR 17-22E 11%

429

394

361

327

294

253

12% 12%

11%

10%

9% 9%

2017A 2018E 2019E 2020E 2021E 2022E

42.5

% total of Western Europe retail

Western Europe e-Commerce revenues ($bn)

CAGR 16-21E

Source: Euromonitor Moreover, third-party market estimates suggest that the payment market will develop across Europe, driven by higher payment volumes in general and new payment methods, such as account-to-account payments (A2A). The European payments market is estimated to have generated around €38 billion in 2016, with transactions totalling €190,000 billion made via several payment methods. It is expected to grow to approximately €55 billion by 2020.

20%

80

17.1

Pr ted Directories

2016A

2021E

EMEA SaaS and Cloud Software Revenue ($bn)

Source: IDC – Worldwide SaaS and Cloud Software Market

COMPETITIVE ENVIRONMENT 1.3.6

The Group believes it has a leading position in the local advertizing market in France among both traditional and digital players. Its proprietary websites are also among the seven most visited platforms in France in terms of audience, based on the number of visits in October 2017. From a media perspective, the competitive landscape can be split into three categories of market participants:

platforms, namely global search engines operating in all sectors, l such as Google, Bing and Yahoo! These groups do not focus on the local search market and generally choose to partner with players, such as SoLocal, which provide a comprehensive set of information on local businesses in return for increased traffic to the proprietary media and websites of their customers;

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2017 Registration Document SOLOCAL