SoLocal : Investor Day - Inside the new Solocal - 10/12/19

Investor Day

December 2019

DECEMBER 2019

Disclaimer

This document contains forward-looking statements. Any forward-looking statement does not constitute forecasts as defined in European regulation (EC) 809/2004. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on the Company's current beliefs, assumptions and expectations of its future performance, taking into account all information currently available. Forward-looking information and statements are not guarantees of future performance and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company. These risks and uncertainties include those discussed or identified under section 4 "Risk Factors" of the SoLocal Group's reference document which was filed with the French financial markets authority (AMF) on 21stMarch 2019. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: the effects of competition; usage levels; the success of investments by the Group in France and abroad; the effects of the economic situation. SoLocal Group, its affiliates, directors, advisors, employees and representatives expressly disclaim any liability whatsoever for such forward-looking statements.

The forward-looking statements contained in this document apply only at the date of this document. Solocal Group does not undertake to update any of these statements to take account of events or circumstances arising after the date of said document or to take account of the occurrence of unexpected events.

The quarterly financial statements are not audited.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the total provided.

P.2

Agenda

Introduction-Eric Boustouller

Products-Amaury Lelong

Tech platforms -Arnaud Defrenne

Financial highlights -Olivier Regnard

Conclusion and Q&A

Deeptransformation towardsthe new Solocal

• 20 months after the launch of Solocal 2020 plan:the bulk of the transformation is behind us
• Deep transformation across the boardwith major key achievements
• • Solocal repositioningon its marketas a major Digital player at the local level, in omnichannel mode
  • Revamped product offerinto a simplified and subscription range of digital services for SMBs and Large Accounts
  • Ongoingmedia platforms upgrade
  • Drastic reduction in the cost base-€100 M in 2019E and -€125-130 M in 2020 objective
  • Stronger tech infrastructureand agile processes: move to Cloud, solid IT and tech platforms
  • Renewedteams: 60% of top management renewed with strong expertise in the digital, sales and management fields to build the new Solocal

P.4

The new Solocal: 100% Digital leader…

100% Digital	… uniquely	… on a growing	… with increasing	… and strongcash
company…	positioned…	market…	profitability…	generation

Agile tech	One-stop shop for	~ 10% / year	>5% growth of recurring	Visibility on
company	Digital Marketing	Strong local	EBITDA in H1 2019	operating cash-
	and Digital		flows
End of Print	market coverage	Strong growth of Digital
Advertising services	Subscription mode
business in 2020	For SMBs and Large		EBITDA
		Strong Digital EBITDA
	Accounts
		margin

P.5

… firmly set on the path to growth

• Returntogrowth:turningpointachievedin2019
• • Digitalorderintake: +5% in Q3 2019
  • Recurring EBITDA: +5% in H1 2019
• Keepinguppathtogrowthin Q4 2019 and beyond
• • Positivedemandfornewdigitalservicesgenerating leads for customers inc. newly launched Priority Ranking as well as Booster range of advertising products (cross-sell)
  • Q4 2019 Digital order intake traction and productivity in line with strong end of quarter plan (strikes may impact momentum)
  • Digital order intake Q4 2019growthobjectivesareunchanged:deliver stable order intake in 2019 vs. 2018, based on a stable environment

P.6

Solocal Value Proposition

Amaury Lelong,

Chief Product and

Media Officer

Boost

local life

P.8

Before going to a shop, I check the opening hours

Unless really needed, I no longer call

I leave a review	I do not rely on the
number of stars only,
when asked
I read all comments

Newcustomers'usage

andexpectations		I need an online
		quote before
		going further

Qualityof information	It is usefulto set an appointment	When I don't know a pro,
on a pro is key to me	outsideof opening hours	I prefer to use a specialistwebsite

P.9

Digital services,

powered

through a unique interface

P.10

My	My
informations	reviews

My	My
news	requests

My
My
e-business	bookings

My	My
clients	advertising

My results

to boost local businesses

For SMBs and retail networks

2 examples…
	Stéphane	Taline
	32 yearsold	45 yearsold
Owner of «Bike Up»		Founder of « Azur Beauté»,
Motorcycle dealer's parts and repair shop	Network of 25 beauty shops
Villeurbanne (69) - near Lyon		Southeast of France
CHALLENGES	CHALLENGES
#1	#2	#1	#2
Expand his business	Sell dealer's parts online	Better manage online	Develop customer loyalty
		communication for all her shops
P.11

Update key information about your repair shop…

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

Addpictures

Change openinghours

Publishnews

P.12

• or simultaneously for each and every one of the beauty shops

Interface to push informationfor all beauty shops

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

Managingand delegatingrights

P.13

Real time update on your Solocal website…

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

P.14

… as well as on the local pages of the 25 beauty shops

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

P.15

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

Bothwillbehappy to realisethat managingfresh

content isa SEO

booster

P.16

Website

productline

Quality visibility on

the web

P.17

Real time updates on all major audience portals

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

P.18

Manage reviewsin seconds

On a singleapp

Answerall reviews

Requestmore reviews

My	My
informations	reviews
My	My
news	requests
My
	My
e-business		bookings
My		My
clients		advertising

My results

P.19

Centralise all customers' requests

Instant messaging

Quotation

Appointments

My My

informations reviews

My	My
news	requests
My
My
e-business	bookings
My			Aujourd'hui
My
clients	advertising

My results

P.20

Presence

management

productline

Simple client interactions, anywhere on the web, no matter how many points of sales are managed

P.21

Win new customers

SEA campaigns

Targeteddisplay campaigns

Social media campaigns

My	My
informations	reviews
	My
My
news	requests
My
My
e-business	bookings
My	My
clients	advertising

My results

P.22

Manage all marketing channels

My		My
informations		reviews
My		My
news		requests
My
	My
e-business		bookings
My		My
clients		advertising

My results

P.23

Advertising productline

They target additional customers and develop their business

P.24

Overall, an ecosystemof digital services meeting customers' needs

Engage		Getnew clients

SEA

Search Social Display

advertising advertising advertising

Interact		Be remembered

E-reputation

Getfound

Optimise

Information	Website	Dashboards
updates	creation

P.25

4 key

differentiatingassets

P.26

1 - A unique industrialcapacitysupportedby state-of-the-art digital platform

CONTENT

5mFrench businesses referenced

>150kcontent daily updates

WEBSITES

>60 Kwebsites monitored daily

>200 websites

delivered / week

ADVERTISING

Ad

campaigns

>20,000advertising

campaigns / month

> Unique local DMP

bidding for local

advertising

NETWORKS

>260 K local pages managed for330 network brands

P.27

2 - Network effectover Solocal's richand exclusive contents for 5 million local businesses

Proprietary	Strategic
media
partners

Proprietary websites

Premium partners

P.28

3 - Content quality+ exclusive partnerships = unequivalentvisibilityon searchengines

GMB	Bing local result

website

website

SEO Solocal

SEO Solocal

website

P.29

4 - Our algorithm-managedadvertisingcampaignsgenerate additional, cost-optimisedtrafficfor ourclients

Diversification and algorithmeffecton CPA (Cost Per Acquisition)

Evolution in 2019 (Base 100)

100

67

Févr.-19Mars-19Avril-19Mai-19Juin-19Juil.-19Août-19Sept.-19Oct.-19Nov.-19

P.30

Wethereforegeneratemassive, incrementalleads for ourclients at

highlyefficient costs

ProprietaryMedia

Full content and ranking control

Premium Partners

Major content control & occasional ranking control

StategicPartners

Targeted content

control & additional trafficacquisition

# incrtlleads	# incrtlleads	Averagecost
/ year	/ pro* / year	per lead**

80 m+128 0.06€

30 m+43 0.04€

52m+317 0.23€

P.31	* Customers vs. prospects
	** Customers + prospects

Overall, unique competitive advantages in the digital services market

for local businesses

OnlinePRESENCE

Fullwebcontentupdating

DIY websites

Turnkeywebsites

LEADS Ads

Competitivecostper lead

Fullweb acquisition

Transactionalmodules

Booking,quotations,chat

Industrialscale

Local roll-outat scale

360 customerplatform

GAFAM VERTICALS WEB WEBSITE

AGENCIES PROVIDERS

MARKETPLACES

P.32

• in a marketofferingsubstantialopportunities

Share of Internet expenses

in total advertising spend in 2019 (in €bn)

		91.0	28.4
	4.6	63%	67%
13.9	54%
43%
France	Netherlands	China	UK

+10% +20%

DISPLAY SOCIAL

+13%

DISPLAY

+21% +13%

PROGRAMMATIC E-COMMERCE

H1 2018/2019 growth

P.33	Sources : Zenith - Advertising Expenditure Forecasts September 2019, SRI Oliver Wyman - Bilan S1 2019, FEVAD

Achievements

2019

A simplified offer of digital services delivered through a single application

Wehave reviewedbothentry & intermediatelevelsin ourproduct

range …

SIMPLIFIED

ACTIVITIES

GEOGRAPHY

Privilège

Premium

Essentiel

«FULL WEB»

? ?

SUBSCRIPTION MODE

12-month subscription,

automaticrenewal

P.35

• layingthe basis for a fullysimplifiedoffer

Essentiel Premium Privilège

Website	From	From	From
€70exc. vat/month	€169exc. vat /month	€355exc. vat/month

Presence	Delivered in 2019
From	From
management	€29exc. vat/month	€49exc. vat/month	Change in 2020

Advertising	From
	From
		€67exc. vat/month		€90exc. vat/month

P.36

With positive first results on SMB segment

Migrationrate1	TelesalesDevelopment rate2	Field salesDevelopmentrate2
> 80%	+ 25%		+ 5%

Being top ranked means

PagesJaunesaccounts for 30%

more leads calling,

It brings me customers,

of requestsfor quotes and 18%

hence more work.

prospects and more

of signed quotes.

Guillon Père et Fils

visibility.

BSPI Rénovation

(Levelling and sanitation)

(Restoration)

Sudelec

(Electrical equipment)

I subscribed to the PriorityRanking offer to

have an online presenceon high-traffic

We wanted to be top ranked, as we have a

websites and social networks, and for the

lot of competitors.With Solocal we have a

centraliseddashboard via the app.

relationshipbased on trust.

CTA

Luminex Provence

(Vehicle inspection)

(Electricity, heating)

P.37	1% of new Presence and Priority Ranking order intake by sales reps, vs. total new and equivalent historic range sold by sales reps
2Increase in Telesalesor Filed customers spend when buying the new Presence and Priority Ranking offer, vs. previous budget on equivalent historic range

Overallan ecosystemof digital services accessible through a unique app

My	My
informations	reviews
My	My
news	requests
My
My
e-business	bookings
My	My
clients	advertising

My results

P.38

• selling3 major productlines, covering2 key promises for SMBsand retailnetworks

Full web interaction	Full web lead
1and content management	2
	generation

SMB'S

84%

(453 m€)

Large accounts &

networks

16%

(89 m€)

17%		19%		52%		13%
(€75M)		(€85M)		(€235M)		(€58M)

10%	22%	56%	12%
(€9M)	(€20M)	(€49M)	(€11M)
WEBSITES	PRESENCE	ADVERTISING	PRINT

P.39

2020

roadmap

The Solocal platform, allows local

businesses and service providers to build

1. long-lastingcustomer relationship with their clients, giving them the opportunity to takean important local share of voice

Our vision: To becomethe one-stop-shop for local businesses and consumers

Introducingthe Solocal Platform

			Reciprocalneeds
			Manage digital presence		Discover local businesses
			Manage e-reputation		Post reviews
			Develop the business		Findrelevant pros
			throughtargetedads
			Connectwithquality		Requestfor a quote
4.8m+		prospects				55m+
	Attractclients in store		Makean appointment
businesses				consumers
Solocal		Createcustomerloyalty		Getpersonalizedoffers
Manager
			Specificneeds
			Manage admin tasks		Getpersonalized
					experience
		Marketplace	Findfinancing
		of
		B2B services

P.41

1Integratenew addedvalue featuresto enhancemore interactions

Engage

Getnew clients

SEA

Booking

Click &

Online

Search

Social

Display

Collect

payment

advertising

advertising

advertising

Interact

Be remembered

E-reputationQuotation Chat	Client	SMS/Emails	Loyalty
			database	campaigns	program
	Be found			Optimise

Information	Website			Dashboards	Billing	Document
broadcast	creation				management	storage &
						sharing
P.42		2019	2020	2021

2Websiteproductswillbefirst to benefitfromthosenew client solutions, on top of a new DIY offer

2019

					Privilège
			Premium
	Essentiel

WEBSITES - Developed

2020

CRM

+

CRM

+

Premium

Privilège

Essentiel

SITES

WEBSITES

Do It Yourself

Developed

P.43

3New client solutions willalsofeedourentry leveland enable a freemium strategyto boost acquisition of new clients

PRESENCE 2019

PRESENCE 2020

Presence

FullWEB

+

Presence

PJ & partners Online

+reputation

News

Presence

PJ & partners

2

Diffusion

FullWEB

Online

reputation Landing page

+

	CRM &
	loyalty
	Photo book
	Mini website +
Online	Domain name
schedule	New services
Review
requests	+
Instant
Messaging
Landing
page
+

€29 €49

€0	€10-20	€40-60	>€60
1

P.44

Tech Platforms

Arnaud Defrenne, CTO

Key technologyhighlights

1	2	3
Key	Solocal	Solocal advertising
tech figures	platform	technologies

4	5		6
Pages Jaunes		Solocal	Conclusion
platform		Manager

P.46

Solocal technology key figures

An agile team

250	100%	New
R&D developers	Agile - Startup mode	management

Investment focusedon technology

€21m	Key partner
H1 2019 Capex

Cloud at the core

1 big BigData datalake with IA

50k campaigns, 100k leads/month

2.4 bn visits/year, 14.4 bn impressions/year, 320m messages/day

Standardised	100%
devops tools	GDPR compliant
Auto scale	Real time
with Kubernetes	bidding (120 ms)

P.47

Our vision: one-stop shop for pros and consumers

Solocal Platform

4.8m+

businesses

Solocal

Manager

Marketplace

of

B2B services

Reciprocalneeds

Manage digital presence		Discover local businesses
Manage e-reputation		Post reviews
Develop the business		Findrelevant pros
throughtargetedads
Connectwithquality		Requestfor a quote
prospects				55m+
Attractclients in store		Makean appointment
	consumers
Createcustomerloyalty		Getpersonalizedoffers
Specificneeds
Manage admin tasks		Getpersonalized
		experience
Findfinancing

P.48

Solocal as a Platform

	plateforme
Solocal
Manager
core marketing	solocal
services	market place
Presence	CRM
Sites	Payment	API
+ 4.8M SMBs
advertising
booking
E-commerce

Exclusive partners

+ 55M

consumers

Privilege partners

A platform focused on advertising and presence, our future is e-commerce

P.49

Solocal unrivaled advertising technologies enable micro- campaigns at scale to generate cost effective leads

Solocal Programmatic AdServer brings"clients on demand"

Targets users locally on any media,	4.5m mobile profile, ultra-local data
audience reach estimations at scale	via Pages Jaunes and Mappy

SolocalKeywordSystemlowers lead cost

Unique IA Realtime bidding	Continuously optimize campaigns
algorithms for sponsored links	to maximize ROI

Solocal Marketing Tech:

Unique local database filter for email and SMS campaigns

Our Client can adjust leads / budgets on demand

OnePerfplatform for SolocalMedia:

a Decision engine optimizing adspace ROI

P.50

"Bridge platform" make the bridge between mother company

and points of sale

Bridge enable to manage mass update ofthousand POSs across large networks

Each POS can access to all Solocal products and run its own digital campaigns

With Bridge SEO Optimized mini-sites are generated for each POS

Dashboards and analytics

are available

at the network, the region

and the local level

P.51

PagesJaunesplatform connects internet users to professionals

Todayfocused on search, tomorrow on interactions

Search

ROADMAP 2020

Multi-channel communication Chat/Email/Sms

Content

Crawler

Booking Quotations Chat eCommerce

2021

IA content

moderationE-Commerce

market place

New search	Loyalty Program
engine	Payment

P.52

SolocalManager: Our journey to one platform

2019

Booking

Presence

Advertising and Drive to store

POS management

Booking

Presence API

Site builder

Keyword

Programatic

Mail

Text

"bridge"

Reporting

platform

bidding

adserver

campaigns

campaigns

network management

analytic

Fromfragmentedapplications to one unified platform

2020		ONE SOLOCALMANAGER

Presence	Sites	Booking Advertising	Store	CRM
locator

P.53

Agile tech platforms to support growth

• Solocal invests in R&D withagile teamsin startup mode to build a powerful digital services platform dedicated to SMBs and networks
• Solocal ownsunique technologiesto provide digital marketing and advertising services at scale, all available through Solocal Manager, a powerful and unique front end app
• SolocalArtificialIntelligencealgorithmsenable micro decisions for micro campaigns building on massive local data
• Pages Jaunes media connects internet users to SMBs with anew search experiencecoming in 2020, faster, more relevant, map oriented with marketplace and e-commerce opportunities down the road
• Leveragingour current technologiesand adding single sign on and micro services architecture we build one platform with all B2B features in a one stop shop

P.54

Financial Outlook

Olivier Regnard, CFO

Solocal 2020: a two-foldtransformation

Printdiscontinuationand subscriptionmode willimpact 2020 KPIs

• Solocal business is a fixed cost business
• • Direct costsrepresent 20%-25% of the revenue
  • Indirect costs(personnel costs, SG&A) have always been shared between the two core activities Print & Digital
• As long as the print business represented a significant portion of the business, indirect costs were allocated to both business according to allocation key as illustrated in our former communications
• As announced early 2019, the last edition of printed directories will occur in 2020

In million euros	H1 2019
•	Digital revenues	268
•	Print revenues	36
Total revenues	304
•Net recurring external expenses	(83)
•	Recurring personnel expenses	(140)
RecurringEBITDA	81
100

80	8
8

6010

40
			74
60
20
-
H1 2018			H1 2019
		Digital Recurring EBITDA		Print Recurring EBITDA			IFRS 16 impact

P.56

A deeptransformation has enableda stronggrowthin Digital Ebitda

A contributive vision of the Print business

• The print business will be formally discontinued from an accounting perspective in 2020.
• • The marginal profit of the Print business will disappear; while
  • All indirect costs will remain and will be mechanically allocated to the Digital business.
• All transformation implemented over the last two years aimed to develop the digital business and to avoid a «cliff effect» enabling to drive a strong growth in the Digital Ebitda business of up to 30% of revenue

RecurringEbitda breakdown

RecurringDigital Ebitda margin

							> 30%
170	171
30	22				20%
				13%
140	149
€m
20171	20181	2019	2020	20171	20181	2019	2020

		Digital EBITDA		Print EBITDA		Digital EBITDA margin - incl Print indirect costs
P.57				1Before IFRS 16

Transition to a subscriptionmodel: a virtuouscircle

Fromorderintaketo revenues

• The Subscription model is absolutely key for the new Solocal as it should enable
• • To reduce churn
  • To increase sales bandwidth,to do upsell, cross-sell and acquire new customers
• Historically order intake was used as an alternative KPI since it was a proxy for revenues illustrating the sales dynamics. It was converted into revenues for 2/3, during the first 12 months
• The subscription model will make order intake meaningless as 2020 moves forward
  Revenues will become the key indicator

2019

2020

Q1	Q2	Q3	Q4
		M7 - Orderintake	M11 - Beginning
			of service

Orderintakenot

comparable - but same

revenue generation

M11 - Orderintake& beginningof service

P.58

A securedand strongerliquidity

• Due to significant restructuringcash-outs, liquidity headroom was limited
• Whilst 2019 has been secured, a delayed asset disposal and a larger working capital requirement reduced these margins from November onwards
• • Implementation of a combination of tools as announced on November 28thto secure 2020 liquidity and ease a refinancing process being considered in 2020

Working capital gap

RCF increase by €10m

Asset financing to be increased

up to €10m +

Equity line

Customers payment terms rationalisation among others

Additional €10m to reach €50m RCF now

€44m of capex per year - €7m of unused committed line so far -

Complementary lines being investigated

58m shares potentially issued and underwritten by Kepler

Amount drawn depending on the stock price €16m already drawn (32m shares) on 5thDecember 2019

Solocal in a position to put on hold / cancel this equity line at any time

P.59

The new Solocal: a strongsustainablecash flow from2021

In million euros	FY 20181	H1 20192	2021
Recurring EBITDA	171	81
•	Non monetary EBITDA	10	6
•	Change in WCR	(14)	(19)		Consistent with commercial
dynamics
•	Capex	(44)	(21)	➔	Continued investmentsin tech
Recurring operating cash flow	124	47
•	Non recurring (incl. WCR)	(68)	(46)		No more restructuring costs
•	Financial expenses	(32)	(20)		Refinancingconsideredin 2020
•	Corporate income tax paid	(16)	4		Consistent with SL new profile
FCF from continued activities	8	(15)
•	Others (of which leases)	(13)	(8)	➔	IFRS16 impactin 2019
Net cash variation	(4)	(23)

P.60	1	Before IFRS 16
2	After IFRS 16

Conclusion

Eric Boustouller, CEO

Solocal: the top French Digital playeron the global market

14x

8x

26x

8x

17x

12x

8x

7x	36x
	9x
P.62	Note: 2020E EBITDA multiple as of 9thDecember 2019 indicated below each logo

The new Solocal: a 100% Digital playerwithsolidmargins

EV / EBITDA 2020E

14.1x

8.1x

4.7x

		USdigital	EU digital
		…
Revenues CAGR1	Growth	+ 11 %	+ 7 %
EBITDA margin2	~ 30 %	22 %	24 %

Note: EBITDA multiple (median 2020E) as of 9thDecember 2019

P.631. 2021E vs. 2019E

2. 2019E

• and key competitiveadvantagesfor profitable growth

An innovative and		A solidand agile		Proprietarymedia
competitiverange of		technology		generatingcost-efficient
digital services				qualitative leads

A unique and optimisedlocal sales coverage

P.64

Q & A

P.65

Investor Day

December 2019

DECEMBER 2019

Disclaimer

This document contains forward-looking statements. Any forward-looking statement does not constitute forecasts as defined in European regulation (EC) 809/2004. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on the Company's current beliefs, assumptions and expectations of its future performance, taking into account all information currently available. Forward-looking information and statements are not guarantees of future performance and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company. These risks and uncertainties include those discussed or identified under section 4 "Risk Factors" of the SoLocal Group's reference document which was filed with the French financial markets authority (AMF) on 21stMarch 2019. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: the effects of competition; usage levels; the success of investments by the Group in France and abroad; the effects of the economic situation. SoLocal Group, its affiliates, directors, advisors, employees and representatives expressly disclaim any liability whatsoever for such forward-looking statements.

The forward-looking statements contained in this document apply only at the date of this document. Solocal Group does not undertake to update any of these statements to take account of events or circumstances arising after the date of said document or to take account of the occurrence of unexpected events.

The quarterly financial statements are not audited.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the total provided.

P.2

Agenda

Introduction-Eric Boustouller

Products-Amaury Lelong

Tech platforms -Arnaud Defrenne

Financial highlights -Olivier Regnard

Conclusion and Q&A

Deeptransformation towardsthe new Solocal

• 20 months after the launch of Solocal 2020 plan:the bulk of the transformation is behind us
• Deep transformation across the boardwith major key achievements
• • Solocal repositioningon its marketas a major Digital player at the local level, in omnichannel mode
  • Revamped product offerinto a simplified and subscription range of digital services for SMBs and Large Accounts
  • Ongoingmedia platforms upgrade
  • Drastic reduction in the cost base-€100 M in 2019E and -€125-130 M in 2020 objective
  • Stronger tech infrastructureand agile processes: move to Cloud, solid IT and tech platforms
  • Renewedteams: 60% of top management renewed with strong expertise in the digital, sales and management fields to build the new Solocal

P.4

The new Solocal: 100% Digital leader…

100% Digital	… uniquely	… on a growing	… with increasing	… and strongcash
company…	positioned…	market…	profitability…	generation

Agile tech	One-stop shop for	~ 10% / year	>5% growth of recurring	Visibility on
company	Digital Marketing	Strong local	EBITDA in H1 2019	operating cash-
	and Digital		flows
End of Print	market coverage	Strong growth of Digital
Advertising services	Subscription mode
business in 2020	For SMBs and Large		EBITDA
		Strong Digital EBITDA
	Accounts
		margin

P.5

… firmly set on the path to growth

• Returntogrowth:turningpointachievedin2019
• • Digitalorderintake: +5% in Q3 2019
  • Recurring EBITDA: +5% in H1 2019
• Keepinguppathtogrowthin Q4 2019 and beyond
• • Positivedemandfornewdigitalservicesgenerating leads for customers inc. newly launched Priority Ranking as well as Booster range of advertising products (cross-sell)
  • Q4 2019 Digital order intake traction and productivity in line with strong end of quarter plan (strikes may impact momentum)
  • Digital order intake Q4 2019growthobjectivesareunchanged:deliver stable order intake in 2019 vs. 2018, based on a stable environment

P.6

Solocal Value Proposition

Amaury Lelong,

Chief Product and

Media Officer

Boost

local life

P.8

Before going to a shop, I check the opening hours

Unless really needed, I no longer call

I leave a review	I do not rely on the
number of stars only,
when asked
I read all comments

Newcustomers'usage

andexpectations		I need an online
		quote before
		going further

Qualityof information	It is usefulto set an appointment	When I don't know a pro,
on a pro is key to me	outsideof opening hours	I prefer to use a specialistwebsite

P.9

Digital services,

powered

through a unique interface

P.10

My	My
informations	reviews

My	My
news	requests

My
My
e-business	bookings

My	My
clients	advertising

My results

to boost local businesses

For SMBs and retail networks

2 examples…
	Stéphane	Taline
	32 yearsold	45 yearsold
Owner of «Bike Up»		Founder of « Azur Beauté»,
Motorcycle dealer's parts and repair shop	Network of 25 beauty shops
Villeurbanne (69) - near Lyon		Southeast of France
CHALLENGES	CHALLENGES
#1	#2	#1	#2
Expand his business	Sell dealer's parts online	Better manage online	Develop customer loyalty
		communication for all her shops
P.11

Update key information about your repair shop…

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

Addpictures

Change openinghours

Publishnews

P.12

• or simultaneously for each and every one of the beauty shops

Interface to push informationfor all beauty shops

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

Managingand delegatingrights

P.13

Real time update on your Solocal website…

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

P.14

… as well as on the local pages of the 25 beauty shops

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

P.15

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

Bothwillbehappy to realisethat managingfresh

content isa SEO

booster

P.16

Website

productline

Quality visibility on

the web

P.17

Real time updates on all major audience portals

	My	My
	informations	reviews
		My
	My
	news	requests
	My
	My
	e-business	bookings
	My	My
	clients	advertising

My results

P.18

Manage reviewsin seconds

On a singleapp

Answerall reviews

Requestmore reviews

My	My
informations	reviews
My	My
news	requests
My
	My
e-business		bookings
My		My
clients		advertising

My results

P.19

Centralise all customers' requests

Instant messaging

Quotation

Appointments

My My

informations reviews

My	My
news	requests
My
My
e-business	bookings
My			Aujourd'hui
My
clients	advertising

My results

P.20

Presence

management

productline

Simple client interactions, anywhere on the web, no matter how many points of sales are managed

P.21

Win new customers

SEA campaigns

Targeteddisplay campaigns

Social media campaigns

My	My
informations	reviews
	My
My
news	requests
My
My
e-business	bookings
My	My
clients	advertising

My results

P.22

Manage all marketing channels

My		My
informations		reviews
My		My
news		requests
My
	My
e-business		bookings
My		My
clients		advertising

My results

P.23

Advertising productline

They target additional customers and develop their business

P.24

Overall, an ecosystemof digital services meeting customers' needs

Engage		Getnew clients

SEA

Search Social Display

advertising advertising advertising

Interact		Be remembered

E-reputation

Getfound

Optimise

Information	Website	Dashboards
updates	creation

P.25

4 key

differentiatingassets

P.26

1 - A unique industrialcapacitysupportedby state-of-the-art digital platform

CONTENT

5mFrench businesses referenced

>150kcontent daily updates

WEBSITES

>60 Kwebsites monitored daily

>200 websites

delivered / week

ADVERTISING

Ad

campaigns

>20,000advertising

campaigns / month

> Unique local DMP

bidding for local

advertising

NETWORKS

>260 K local pages managed for330 network brands

P.27

2 - Network effectover Solocal's richand exclusive contents for 5 million local businesses

Proprietary	Strategic
media
partners

Proprietary websites

Premium partners

P.28

3 - Content quality+ exclusive partnerships = unequivalentvisibilityon searchengines

GMB	Bing local result

website

website

SEO Solocal

SEO Solocal

website

P.29

4 - Our algorithm-managedadvertisingcampaignsgenerate additional, cost-optimisedtrafficfor ourclients

Diversification and algorithmeffecton CPA (Cost Per Acquisition)

Evolution in 2019 (Base 100)

100

67

Févr.-19Mars-19Avril-19Mai-19Juin-19Juil.-19Août-19Sept.-19Oct.-19Nov.-19

P.30

Wethereforegeneratemassive, incrementalleads for ourclients at

highlyefficient costs

ProprietaryMedia

Full content and ranking control

Premium Partners

Major content control & occasional ranking control

StategicPartners

Targeted content

control & additional trafficacquisition

# incrtlleads	# incrtlleads	Averagecost
/ year	/ pro* / year	per lead**

80 m+128 0.06€

30 m+43 0.04€

52m+317 0.23€

P.31	* Customers vs. prospects
	** Customers + prospects

Overall, unique competitive advantages in the digital services market

for local businesses

OnlinePRESENCE

Fullwebcontentupdating

DIY websites

Turnkeywebsites

LEADS Ads

Competitivecostper lead

Fullweb acquisition

Transactionalmodules

Booking,quotations,chat

Industrialscale

Local roll-outat scale

360 customerplatform

GAFAM VERTICALS WEB WEBSITE

AGENCIES PROVIDERS

MARKETPLACES

P.32

• in a marketofferingsubstantialopportunities

Share of Internet expenses

in total advertising spend in 2019 (in €bn)

		91.0	28.4
	4.6	63%	67%
13.9	54%
43%
France	Netherlands	China	UK

+10% +20%

DISPLAY SOCIAL

+13%

DISPLAY

+21% +13%

PROGRAMMATIC E-COMMERCE

H1 2018/2019 growth

P.33	Sources : Zenith - Advertising Expenditure Forecasts September 2019, SRI Oliver Wyman - Bilan S1 2019, FEVAD

Achievements

2019

A simplified offer of digital services delivered through a single application

Wehave reviewedbothentry & intermediatelevelsin ourproduct

range …

SIMPLIFIED

ACTIVITIES

GEOGRAPHY

Privilège

Premium

Essentiel

«FULL WEB»

? ?

SUBSCRIPTION MODE

12-month subscription,

automaticrenewal

P.35

• layingthe basis for a fullysimplifiedoffer

Essentiel Premium Privilège

Website	From	From	From
€70exc. vat/month	€169exc. vat /month	€355exc. vat/month

Presence	Delivered in 2019
From	From
management	€29exc. vat/month	€49exc. vat/month	Change in 2020

Advertising	From
	From
		€67exc. vat/month		€90exc. vat/month

P.36

With positive first results on SMB segment

Migrationrate1	TelesalesDevelopment rate2	Field salesDevelopmentrate2
> 80%	+ 25%		+ 5%

Being top ranked means

PagesJaunesaccounts for 30%

more leads calling,

It brings me customers,

of requestsfor quotes and 18%

hence more work.

prospects and more

of signed quotes.

Guillon Père et Fils

visibility.

BSPI Rénovation

(Levelling and sanitation)

(Restoration)

Sudelec

(Electrical equipment)

I subscribed to the PriorityRanking offer to

have an online presenceon high-traffic

We wanted to be top ranked, as we have a

websites and social networks, and for the

lot of competitors.With Solocal we have a

centraliseddashboard via the app.

relationshipbased on trust.

CTA

Luminex Provence

(Vehicle inspection)

(Electricity, heating)

P.37	1% of new Presence and Priority Ranking order intake by sales reps, vs. total new and equivalent historic range sold by sales reps
2Increase in Telesalesor Filed customers spend when buying the new Presence and Priority Ranking offer, vs. previous budget on equivalent historic range

Overallan ecosystemof digital services accessible through a unique app

My	My
informations	reviews
My	My
news	requests
My
My
e-business	bookings
My	My
clients	advertising

My results

P.38

• selling3 major productlines, covering2 key promises for SMBsand retailnetworks

Full web interaction	Full web lead
1and content management	2
	generation

SMB'S

84%

(453 m€)

Large accounts &

networks

16%

(89 m€)

17%		19%		52%		13%
(€75M)		(€85M)		(€235M)		(€58M)

10%	22%	56%	12%
(€9M)	(€20M)	(€49M)	(€11M)
WEBSITES	PRESENCE	ADVERTISING	PRINT

P.39

2020

roadmap

The Solocal platform, allows local

businesses and service providers to build

1. long-lastingcustomer relationship with their clients, giving them the opportunity to takean important local share of voice

Our vision: To becomethe one-stop-shop for local businesses and consumers

Introducingthe Solocal Platform

			Reciprocalneeds
			Manage digital presence		Discover local businesses
			Manage e-reputation		Post reviews
			Develop the business		Findrelevant pros
			throughtargetedads
			Connectwithquality		Requestfor a quote
4.8m+		prospects				55m+
	Attractclients in store		Makean appointment
businesses				consumers
Solocal		Createcustomerloyalty		Getpersonalizedoffers
Manager
			Specificneeds
			Manage admin tasks		Getpersonalized
					experience
		Marketplace	Findfinancing
		of
		B2B services

P.41

1Integratenew addedvalue featuresto enhancemore interactions

Engage

Getnew clients

SEA

Booking

Click &

Online

Search

Social

Display

Collect

payment

advertising

advertising

advertising

Interact

Be remembered

E-reputationQuotation Chat	Client	SMS/Emails	Loyalty
			database	campaigns	program
	Be found			Optimise

Information	Website			Dashboards	Billing	Document
broadcast	creation				management	storage &
						sharing
P.42		2019	2020	2021

2Websiteproductswillbefirst to benefitfromthosenew client solutions, on top of a new DIY offer

2019

					Privilège
			Premium
	Essentiel

WEBSITES - Developed

2020

CRM

+

CRM

+

Premium

Privilège

Essentiel

SITES

WEBSITES

Do It Yourself

Developed

P.43

3New client solutions willalsofeedourentry leveland enable a freemium strategyto boost acquisition of new clients

PRESENCE 2019

PRESENCE 2020

Presence

FullWEB

+

Presence

PJ & partners Online

+reputation

News

Presence

PJ & partners

2

Diffusion

FullWEB

Online

reputation Landing page

+

	CRM &
	loyalty
	Photo book
	Mini website +
Online	Domain name
schedule	New services
Review
requests	+
Instant
Messaging
Landing
page
+

€29 €49

€0	€10-20	€40-60	>€60
1

P.44

Tech Platforms

Arnaud Defrenne, CTO

Key technologyhighlights

1	2	3
Key	Solocal	Solocal advertising
tech figures	platform	technologies

4	5		6
Pages Jaunes		Solocal	Conclusion
platform		Manager

P.46

Solocal technology key figures

An agile team

250	100%	New
R&D developers	Agile - Startup mode	management

Investment focusedon technology

€21m	Key partner
H1 2019 Capex

Cloud at the core

1 big BigData datalake with IA

50k campaigns, 100k leads/month

2.4 bn visits/year, 14.4 bn impressions/year, 320m messages/day

Standardised	100%
devops tools	GDPR compliant
Auto scale	Real time
with Kubernetes	bidding (120 ms)

P.47

Our vision: one-stop shop for pros and consumers

Solocal Platform

4.8m+

businesses

Solocal

Manager

Marketplace

of

B2B services

Reciprocalneeds

Manage digital presence		Discover local businesses
Manage e-reputation		Post reviews
Develop the business		Findrelevant pros
throughtargetedads
Connectwithquality		Requestfor a quote
prospects				55m+
Attractclients in store		Makean appointment
	consumers
Createcustomerloyalty		Getpersonalizedoffers
Specificneeds
Manage admin tasks		Getpersonalized
		experience
Findfinancing

P.48

Solocal as a Platform

	plateforme
Solocal
Manager
core marketing	solocal
services	market place
Presence	CRM
Sites	Payment	API
+ 4.8M SMBs
advertising
booking
E-commerce

Exclusive partners

+ 55M

consumers

Privilege partners

A platform focused on advertising and presence, our future is e-commerce

P.49

Solocal unrivaled advertising technologies enable micro- campaigns at scale to generate cost effective leads

Solocal Programmatic AdServer brings"clients on demand"

Targets users locally on any media,	4.5m mobile profile, ultra-local data
audience reach estimations at scale	via Pages Jaunes and Mappy

SolocalKeywordSystemlowers lead cost

Unique IA Realtime bidding	Continuously optimize campaigns
algorithms for sponsored links	to maximize ROI

Solocal Marketing Tech:

Unique local database filter for email and SMS campaigns

Our Client can adjust leads / budgets on demand

OnePerfplatform for SolocalMedia:

a Decision engine optimizing adspace ROI

P.50

"Bridge platform" make the bridge between mother company

and points of sale

Bridge enable to manage mass update ofthousand POSs across large networks

Each POS can access to all Solocal products and run its own digital campaigns

With Bridge SEO Optimized mini-sites are generated for each POS

Dashboards and analytics

are available

at the network, the region

and the local level

P.51

PagesJaunesplatform connects internet users to professionals

Todayfocused on search, tomorrow on interactions

Search

ROADMAP 2020

Multi-channel communication Chat/Email/Sms

Content

Crawler

Booking Quotations Chat eCommerce

2021

IA content

moderationE-Commerce

market place

New search	Loyalty Program
engine	Payment

P.52

SolocalManager: Our journey to one platform

2019

Booking

Presence

Advertising and Drive to store

POS management

Booking

Presence API

Site builder

Keyword

Programatic

Mail

Text

"bridge"

Reporting

platform

bidding

adserver

campaigns

campaigns

network management

analytic

Fromfragmentedapplications to one unified platform

2020		ONE SOLOCALMANAGER

Presence	Sites	Booking Advertising	Store	CRM
locator

P.53

Agile tech platforms to support growth

• Solocal invests in R&D withagile teamsin startup mode to build a powerful digital services platform dedicated to SMBs and networks
• Solocal ownsunique technologiesto provide digital marketing and advertising services at scale, all available through Solocal Manager, a powerful and unique front end app
• SolocalArtificialIntelligencealgorithmsenable micro decisions for micro campaigns building on massive local data
• Pages Jaunes media connects internet users to SMBs with anew search experiencecoming in 2020, faster, more relevant, map oriented with marketplace and e-commerce opportunities down the road
• Leveragingour current technologiesand adding single sign on and micro services architecture we build one platform with all B2B features in a one stop shop

P.54

Financial Outlook

Olivier Regnard, CFO

Solocal 2020: a two-foldtransformation

Printdiscontinuationand subscriptionmode willimpact 2020 KPIs

• Solocal business is a fixed cost business
• • Direct costsrepresent 20%-25% of the revenue
  • Indirect costs(personnel costs, SG&A) have always been shared between the two core activities Print & Digital
• As long as the print business represented a significant portion of the business, indirect costs were allocated to both business according to allocation key as illustrated in our former communications
• As announced early 2019, the last edition of printed directories will occur in 2020

In million euros	H1 2019
•	Digital revenues	268
•	Print revenues	36
Total revenues	304
•Net recurring external expenses	(83)
•	Recurring personnel expenses	(140)
RecurringEBITDA	81
100

80	8
8

6010

40
			74
60
20
-
H1 2018			H1 2019
		Digital Recurring EBITDA		Print Recurring EBITDA			IFRS 16 impact

P.56

A deeptransformation has enableda stronggrowthin Digital Ebitda

A contributive vision of the Print business

• The print business will be formally discontinued from an accounting perspective in 2020.
• • The marginal profit of the Print business will disappear; while
  • All indirect costs will remain and will be mechanically allocated to the Digital business.
• All transformation implemented over the last two years aimed to develop the digital business and to avoid a «cliff effect» enabling to drive a strong growth in the Digital Ebitda business of up to 30% of revenue

RecurringEbitda breakdown

RecurringDigital Ebitda margin

							> 30%
170	171
30	22				20%
				13%
140	149
€m
20171	20181	2019	2020	20171	20181	2019	2020

		Digital EBITDA		Print EBITDA		Digital EBITDA margin - incl Print indirect costs
P.57				1Before IFRS 16

Transition to a subscriptionmodel: a virtuouscircle

Fromorderintaketo revenues

• The Subscription model is absolutely key for the new Solocal as it should enable
• • To reduce churn
  • To increase sales bandwidth,to do upsell, cross-sell and acquire new customers
• Historically order intake was used as an alternative KPI since it was a proxy for revenues illustrating the sales dynamics. It was converted into revenues for 2/3, during the first 12 months
• The subscription model will make order intake meaningless as 2020 moves forward
  Revenues will become the key indicator

2019

2020

Q1	Q2	Q3	Q4
		M7 - Orderintake	M11 - Beginning
			of service

Orderintakenot

comparable - but same

revenue generation

M11 - Orderintake& beginningof service

P.58

A securedand strongerliquidity

• Due to significant restructuringcash-outs, liquidity headroom was limited
• Whilst 2019 has been secured, a delayed asset disposal and a larger working capital requirement reduced these margins from November onwards
• • Implementation of a combination of tools as announced on November 28thto secure 2020 liquidity and ease a refinancing process being considered in 2020

Working capital gap

RCF increase by €10m

Asset financing to be increased

up to €10m +

Equity line

Customers payment terms rationalisation among others

Additional €10m to reach €50m RCF now

€44m of capex per year - €7m of unused committed line so far -

Complementary lines being investigated

58m shares potentially issued and underwritten by Kepler

Amount drawn depending on the stock price €16m already drawn (32m shares) on 5thDecember 2019

Solocal in a position to put on hold / cancel this equity line at any time

P.59

The new Solocal: a strongsustainablecash flow from2021

In million euros	FY 20181	H1 20192	2021
Recurring EBITDA	171	81
•	Non monetary EBITDA	10	6
•	Change in WCR	(14)	(19)		Consistent with commercial
dynamics
•	Capex	(44)	(21)	➔	Continued investmentsin tech
Recurring operating cash flow	124	47
•	Non recurring (incl. WCR)	(68)	(46)		No more restructuring costs
•	Financial expenses	(32)	(20)		Refinancingconsideredin 2020
•	Corporate income tax paid	(16)	4		Consistent with SL new profile
FCF from continued activities	8	(15)
•	Others (of which leases)	(13)	(8)	➔	IFRS16 impactin 2019
Net cash variation	(4)	(23)

P.60	1	Before IFRS 16
2	After IFRS 16

Conclusion

Eric Boustouller, CEO

Solocal: the top French Digital playeron the global market

14x

8x

26x

8x

17x

12x

8x

7x	36x
	9x
P.62	Note: 2020E EBITDA multiple as of 9thDecember 2019 indicated below each logo

The new Solocal: a 100% Digital playerwithsolidmargins

EV / EBITDA 2020E

14.1x

8.1x

4.7x

		USdigital	EU digital
		…
Revenues CAGR1	Growth	+ 11 %	+ 7 %
EBITDA margin2	~ 30 %	22 %	24 %

Note: EBITDA multiple (median 2020E) as of 9thDecember 2019

P.631. 2021E vs. 2019E

2. 2019E

• and key competitiveadvantagesfor profitable growth

An innovative and		A solidand agile		Proprietarymedia
competitiverange of		technology		generatingcost-efficient
digital services				qualitative leads

A unique and optimisedlocal sales coverage

P.64

Q & A

P.65