SOLOCAL_Registration Document_2017

SOLOCAL, LOCAL DIGITAL PARTNER TRUSTED BY BUSINESSES 1.4 Strategy

media and digital services for Internet users and customers in Platform as a Service (PaaS) mode, enabling IT and development teams to focus on the areas where they can add most value; A simple, agile and efficient organization that enables each l person to flourish and manage his/her daily activities One of the main aims of redesigning the organization is to better share digital opportunities within teams. The working environment, both the physical space and the collaboration methods, must develop based on the principles of efficiency, co-operation and flexibility. The goal is to promote employees’ personal development and facilitate their daily work. Simplifying the hierarchy is also a way of improving efficiency. It will be streamlined, with fewer hierarchical levels, and with increased responsibilities. Subsidiaries will also be progressively integrated, with the aim of building more agile and cross-disciplinary teams to serve our customers. Improving operational efficiency will require removing the business units, gathering the telesales, customer support and production activities in regional hubs, and consolidating marketing and operations activities within a centralized organisation. By 2020, our sites in France will maintain a sales presence throughout the country, but the 23 existing sites will be reconfigured into four regional hubs (telesales, customer support, production, R&D/IT) in Lille/Roubaix, Rennes, Bordeaux and Lyon, two Web factory production/development subsidiaries in Angoulême and Chambéry and one telesales hub in Boulogne, with the head office in Boulogne-Billancourt. This streamlining of locations aims to strengthen the sales and support teams’ proximity to customers. Front-line sales teams will get a top-quality working framework by being based in business centers, where they will have all the latest equipment for delivering personalized services at their fingertips. For customers, the aim is to guarantee and maintain an excellent national and local presence – unique in the French market – through exceptional coverage in these business centers. This will entail the loss of some 1,000 positions in 2018-2019, of which approximately 800 will go in 2018, out of a total headcount of 4,627 as at 31 December 2017, with the implementation of a redundancy plan. In parallel, under the transformation plan, the Group expects to create approximately 100 positions in 2018 involving new digital skills. Accordingly, on 21 February 2018, the Group initiated the process of informing and consulting the employee representative bodies, which should be completed no later than the end of June 2018. The Group's aim is to reach an agreement on high-quality individual support measures to be offered to each employee concerned by the project. At this stage, the project would include a phase of voluntary departures aimed at limiting the number of redundancies. It would be implemented with the utmost respect, providing all employees with the opportunity to be heard, and offering personalized and responsible support. The overall cost of the transformation project, of approximately €180 million, will be fully or partially provisioned as of 2018. The associated cash outflows between 2018 and 2020 will be financed from available cash and the excess of cash flow generated over the period.

The first concrete results of this project should be visible over the next few months: April 2018: the gradual transition from the dual-field search of l PagesJaunes.fr to a single-field search will simplify Internet users’ search input, reflect market trends and meet the expectations of today’s Internet users; second-half 2018: conversational and transactional search l functionality will provide users with a new channel for exchanges. Using natural language processing and artificial intelligence technologies developed in partnership with Microsoft, the PagesJaunes chatbot will be a key tool for transforming the relationship between PagesJaunes and its users; and November 2018: syndication will offer increasingly rich content. l By encouraging repeated use on PagesJaunes the Group will boost audience growth and be better able to monetize it. The Group will also develop audiences adapted to each customer profile, which will turn into business leads. Mappy will support the changes in French travelling behaviour by adding a multimodal comparison tool to its route-planning and mapping services. SETTING UP AN AGILE ORGANIZATION AND REINVENTING OUR CORPORATE CULTURE FOCUSING ON DIGITAL SERVICES To achieve these business and service transformations, the Company organization must be redesigned on the basis of three guiding principles: A “Customer & User-centric” corporate culture, with agile l working methods and vectors of operational efficiency, based on structured and optimized processes Each measure of the organization’s transformation project has an absolute priority: to be customer- and user-centric in order to respond to their changing expectations and needs. To meet this challenge, SoLocal’s transformation will require industrialization of its tools and processes throughout the chain. Removing barriers to interactions between departments and fostering co-construction within the Company is the bedrock of the new corporate culture: more agile, more cross-disciplinary, more open. Thus, for example, significant synergies will be developed between the Product and Technology departments, aimed at designing high-performance digital services and strengthening the time-to-market of offers (in Agile and Scrum mode); A new technological dynamic l To position itself at the forefront of market practices, the Group intends to adopt an R&D and IT policy consistent with its ambition. SoLocal’s technology, which is the growth driver for businesses, must encourage the design of innovative services for the benefit of customers and users and be adaptable to all market segments, in France and abroad, applying a powerful and scalable business model. For the first time, SoLocal has opted for cloud solutions, both for its internal IT service in order to provide an agile, modern and secure working environment with business applications (ERP, CRM, etc.) that are even more efficient in software as a service (SaaS ) mode, and for the Groups's R&D teams in the field of

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2017 Registration Document SOLOCAL