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JCDecaux SA: Full-Year 2012 Results

  JCDecaux SA: Full-Year 2012 Results

  *Revenues up 6.5% to €2,622.8 million, organic revenues up 1.5%
  *Operating margin up 3.5% to €602.2 million
  *EBIT before impairment charges^(a) of €316.4 million, down 2.7%
  *Net income group share before impairment charges^(a) of €207.3 million,
    down 2.4%
  *Free cash flow at €322.7 million, up 15.0%
  *Dividend of €0.44 per share proposed for the year 2012
  *Slight decline in organic revenue expected in Q1 2013

Business Wire

PARIS -- March 7, 2013

Regulatory News:

JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company
worldwide, announced today its results for the year ended 31 December 2012.
The accounts are audited and certified.

Commenting on the 2012 results, Jean-Charles Decaux, Chairman of the Executive
Board and Co-CEO of JCDecaux, said:

“JCDecaux achieved record revenues and operating margin, together with
particularly strong free cash flow, despite the recession in Europe in 2012.
This demonstrates once again the strength of our business model with an
increasing presence in fast-growing countries, a strong digital portfolio and
the high quality of our teams around the world.

Our strong free cash flow generation has enabled JCDecaux to continue to
invest for future growth whilst fully deleveraging. This financial flexibility
allows us to develop our business through both organic growth and value
accretive acquisitions. In addition, we will recommend a dividend of €0.44 per
share to the AGM in May.

Regarding Q1 2013, some increased weakness in Europe in January and February
is likely to lead to a slight decline in organic revenue.

Looking forward, we remain convinced that out-of-home retains its strength and
attractiveness in an increasingly fragmented media landscape. We believe we
are well positioned to outperform the advertising market and increase our
leadership position in the outdoor advertising industry. The strength of our
balance sheet is a key competitive advantage that will allow us to pursue
further external growth opportunities as they arise.”

^(a) Resulting from the impairment test (please refer to the EBIT paragraph on
page 2 and to the Net income Group share paragraph on page 3)

REVENUES

As reported on 24 January 2013, consolidated revenues increased by 6.5% to
€2,622.8 million in 2012. Organic revenue growth of 1.5% was mainly driven by
the strength of the Transport business in our key markets, especially
Asia-Pacific, the Rest of the World, the UK and France. Street Furniture
revenues were broadly flat in France and the UK, while most other European
geographies showed continued weakness throughout the year and North America
enjoyed good growth. Billboard was difficult in most of our European markets.
The difference between reported and organic growth in 2012 is mainly due to
foreign exchange variations.

OPERATING MARGIN ^(1)

In 2012, Group operating margin increased by 3.5% to €602.2 million from
€582.1 million in 2011. The operating margin as a percentage of consolidated
revenues was 23.0%, 60 basis points lower than the previous year reflecting
the tough conditions in most European markets.

                                                                                  
            2012                    2011                    Change 12/11
                            % of                       % of           Change       Margin
            (€m)     revenues    (€m)     revenues    (%)       rate
                                                                                   (bp)
Street       374.9    32.0%       386.9    32.8%       -3.1%     -80bps
Furniture
Transport    170.6    16.8%       139.9    16.0%       +21.9%    +80bps
Billboard    56.7     12.9%       55.3     13.5%       +2.5%     -60bps
Total        602.2    23.0%       582.1    23.6%       +3.5%     -60bps
                                                                         

Street Furniture: Operating margin decreased by 3.1% to €374.9 million. As a
percentage of revenues, the operating margin was 80bps below 2011 level at
32.0% due to difficult conditions in Europe (excluding France and the UK),
especially Southern Europe.

Transport: Operating margin saw solid growth in 2012 with a 21.9% year-on-year
increase to €170.6 million. As a percentage of revenues, the operating margin
improved 80bps to 16.8% primarily reflecting steady and profitable growth in
Asia-Pacific.

Billboard: In 2012, operating margin increased by 2.5% to €56.7 million. As a
percentage of revenues, operating margin declined 60bps to 12.9%, compared to
13.5% in 2011. This reflects the impact of the 4.8% decline in organic
revenues.

EBIT ^(2)

In 2012, EBIT before impairment charges slightly decreased by 2.7% to €316.4
million compared to €325.2 million in 2011. As a percentage of consolidated
revenues, this represented a 110bp decrease to 12.1%, from 13.2% in 2011.
Consumption of maintenance spare parts was broadly flat. Depreciation of
tangible and intangible assets excluding impairment charges and excluding
depreciation charges on intangible assets recognized in acquisitions increased
by €18.4 million compared to 2011 and depreciation charges on intangible
assets recognized in acquisitions decreased slightly to €20.5 million (€22.0
million in 2011). Net provisions charges increased by €15.7 million, mainly
due to especially high reversal effects in 2011.

EBIT after impairment charges decreased to €270.6 million compared to €327.1
in 2011. The €45.8 million impairment charge resulting from the impairment
test conducted for goodwill and tangible and intangible assets relates to a
€38.0 million goodwill impairment, concentrated on Billboard in Europe
(excluding France and the UK), and to a €7.8 million asset impairment charge
on tangible and intangible assets.

NET FINANCIAL INCOME / (LOSS) ^(3)

In 2012, net financial income improved to -€19.3 million compared to -€26.9
million in 2011. This improvement is largely due to a lower interest expense,
in line with the lower average debt over the period, as well as foreign
exchange.

EQUITY AFFILIATES

Share of net profit from equity affiliates slightly increased to €16.8 million
compared to €14.6 million last year. This increase is essentially due to
APG|SGA in Switzerland.

NET INCOME GROUP SHARE

In 2012, net income Group share before impairment charges decreased slightly
by 2.4% to €207.3 million, compared to €212.4 million in 2011. The decrease in
EBIT was partially offset by improved net financial income, a slightly lower
tax charge and the slightly higher contribution of equity affiliates.
Including the impact of a €44.5 million impairment charge, net income Group
share decreased to €162.8 million compared to €212.6 million in 2011. This
€44.5 million impairment charge in 2012 corresponds to the €38.0 million
goodwill impairment described in the EBIT paragraph, and to a €6.5 million
impairment on tangible and intangible assets net of tax and net of the impact
on minorities.

CAPITAL EXPENDITURE

Net capex (acquisition of property, plant and equipment and intangible assets,
net of disposals of assets) was €167.8 million, in line with 2011 and slightly
below our expectations.

FREE CASH FLOW ^(4)

Free cash flow was strong at €322.7 million in 2012 compared to €280.5 million
in 2011 (+15.0%), due to the higher operating cash flow and a favorable
evolution of the change in working capital requirements.

NET DEBT ^(5)

The Group was fully deleveraged as of 31 December 2012 with a net cash
position of €34.9 million compared to a net debt position of €147.5 million as
of 31 December 2011. On 4 February 2013, the Group placed a 2%-coupon, €500
million bond, maturing in 2018.

DIVIDEND

At the next Annual General Meeting of Shareholders on 15 May 2013, the
Supervisory Board will recommend the payment of a dividend of €0.44 per share
for the 2012 financial year.

(1) Operating Margin = Revenues less Direct Operating Expenses (excluding
Maintenance spare parts) less SG&A expenses

(2) EBIT = Earnings Before Interests and Taxes = Operating Margin less
Depreciation, amortization and provisions (net) less Impairment of goodwill
less Maintenance spare parts less Other operating income and expenses

(3) Net financial income / (loss) = Excluding the impact of actualization of
debt on commitments to purchase minority interests (-€10.0m and -€5.4m in 2012
and 2011 respectively)

(4) Free cash flow = Net cash flow from operating activities less capital
investments (property, plant and equipment and intangible assets) net of
disposals

(5) Net debt = Debt net of net cash including the non-cash impact of IAS39 (on
both debt and derivatives) and excluding the non-cash impact of IAS 32 (debt
on commitments to purchase minority interests)

                              Next information:
                 Q1 2013 revenues: 6 May 2013 (after market)
             Annual General Meeting of Shareholders: 15 May 2013

Key Figures for the Group

  *2012 revenues: €2,623m
  *JCDecaux is listed on the Eurolist of Euronext Paris and is part of the
    Euronext 100 index
  *No.1 worldwide in street furniture (434,700 advertising panels)
  *No.1 worldwide in transport advertising with more than 150 airports and
    more than 280 contracts in metros, buses, trains and tramways (358,100
    advertising panels)
  *No.1 in Europe for billboards (199,600 advertising panels)
  *No.1 in outdoor advertising in the Asia-Pacific region (205,000
    advertising panels)
  *No.1 worldwide for self-service bicycle hire
  *1,002,800 advertising panels in more than 55 countries
  *Present in 3,700 cities with more than 10,000 inhabitants
  *10,484 employees

Forward looking statements

This news release may contain some forward-looking statements. These
statements are not undertakings as to the future performance of the Company.
Although the Company considers that such statements are based on reasonable
expectations and assumptions on the date of publication of this release, they
are by their nature subject to risks and uncertainties which could cause
actual performance to differ from those indicated or implied in such
statements.

These risks and uncertainties include without limitation the risk factors that
are described in the annual report registered in France with the French
Autorité des Marchés Financiers.

Investors and holders of shares of the Company may obtain copy of such annual
report by contacting the Autorité des Marchés Financiers on its website
www.amf-france.org/ or directly on the Company website www.jcdecaux.com.

The Company does not have the obligation and undertakes no obligation to
update or revise any of the forward-looking statements.

CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

STATEMENT OF FINANCIAL POSITION

Assets

                                                                 
In million euros                             31/12/2012       31/12/2011
                                                  
Goodwill                     § 2.4     1,356.9       1,377.9
Other intangible assets      § 2.4     302.3         328.8
Property, plant and          § 2.5     1,115.8       1,139.4
equipment
Investments in associates    § 2.7     167.2         158.2
Financial investments                 2.1           1.4
Other financial assets       § 2.8     24.2          23.8
Deferred tax assets          § 2.14    29.6          23.6
Current tax assets           § 2.13    0.9           0.9
Other receivables            § 2.9     36.4          37.5
NON-CURRENT ASSETS                    3,035.4       3,091.5
Other financial assets       § 2.8     12.4          14.2
Inventories                  § 2.10    98.8          94.9
Financial derivatives        § 2.19    0.0           0.0
Trade and other              § 2.11    729.7         738.0
receivables
Current tax assets           § 2.13    11.3          3.6
Cash and cash equivalents    § 2.12    458.9         288.7
CURRENT ASSETS                        1,311.1       1,139.4
TOTAL ASSETS                          4,346.5       4,230.9
                                                                             

Liabilities and Equity

                                                                 
In million euros                             31/12/2012       31/12/2011
                                                  
Share capital                         3.4           3.4
Additional paid-in                    1,021.3       1,010.0
capital
Consolidated reserves                 1,351.1       1,235.5
Consolidated net income               162.8         212.6
(Group share)
Other components of                   29.0          32.5
equity
EQUITY ATTRIBUTABLE TO
OWNERS OF THE PARENT                  2,567.6       2,494.0
COMPANY
Non-controlling interests             (42.4)        (24.3)
TOTAL EQUITY                 § 2.15    2,525.2       2,469.7
Provisions                   § 2.16    220.2         198.8
Deferred tax liabilities     § 2.14    103.1         111.8
Financial debt               § 2.17    140.2         357.8
Debt on commitments to
purchase non-controlling     § 2.18    104.1         78.6
interests
Other payables                        25.8          20.4
Financial derivatives        § 2.19    6.1           17.7
NON-CURRENT LIABILITIES               599.5         785.1
Provisions                   § 2.16    31.6          29.9
Financial debt               § 2.17    260.5         71.1
Debt on commitments to
purchase non-controlling     § 2.18    13.3          13.3
interests
Financial derivatives        § 2.19    22.5          0.1
Trade and other payables     § 2.20    841.5         822.5
Income tax payable           § 2.13    39.0          29.5
Bank overdrafts              § 2.17    13.4          9.7
CURRENT LIABILITIES                   1,221.8       976.1
TOTAL LIABILITIES                     1,821.3       1,761.2
TOTAL LIABILITIES AND                 4,346.5       4,230.9
EQUITY
                                                                             

STATEMENT OF COMPREHENSIVE INCOME

INCOME STATEMENT

                                                             
In million euros                                2012         2011
NET REVENUE                                     2,622.8      2,463.0
Direct operating expenses                 § 3.1  (1,619.1)    (1,500.8)
Selling, general and administrative       § 3.1  (401.5)      (380.1)
expenses
OPERATING MARGIN                                602.2        582.1
Depreciation, amortisation and            § 3.1  (250.2)      (207.9)
provisions (net)
Impairment of goodwill                    § 3.1  (38.0)       0.0
Maintenance spare parts                   § 3.1  (37.1)       (37.9)
Other operating income                    § 3.1  7.2          8.7
Other operating expenses                  § 3.1  (13.5)       (17.9)
EBIT                                            270.6        327.1
Financial income                          § 3.2  10.8         16.7
Financial expenses                        § 3.2  (40.1)       (49.0)
NET FINANCIAL INCOME (LOSS)                     (29.3)       (32.3)
Income tax                                § 3.3  (92.1)       (93.7)
Share of net profit of associates         § 3.5  16.8         14.6
PROFIT OF THE YEAR FROM CONTINUING OPERATIONS     166.0        215.7
Gain or loss on discontinued operations                     
CONSOLIDATED NET INCOME                         166.0        215.7
- Including non-controlling interests           3.2          3.1
CONSOLIDATED NET INCOME (GROUP SHARE)           162.8        212.6
Earnings per share (in euros)                   0.734        0.959
Diluted Earnings per share (in euros)           0.733        0.958
Weighted average number of shares         § 3.4  221,876,825  221,723,424
Weighted average number of shares         § 3.4  221,993,660  221,914,884
(diluted)
                                                                             

                                                                
STATEMENT OF OTHER COMPREHENSIVE INCOME
In million euros                                       2012        2011
                                                       
CONSOLIDATED NET INCOME                         166.0    215.7
Translation reserve adjustments on              (3.6)    29.1
foreign transactions ^(1)
Translation reserve adjustments on net          (0.6)    (3.6)
foreign investments
Cash flow hedges                                (0.2)    0.0
Share of other comprehensive income of          0.3      2.2
associates
- Translation reserve adjustments of            0.3      2.0
associates
- Gains and losses on disposal of               0.0      0.2
treasury shares of associates
Other comprehensive income before tax           (4.1)    27.7
Tax on other comprehensive income ^(2)          0.0      (0.1)
TOTAL COMPREHENSIVE INCOME                      161.9    243.3
- Including non-controlling interests           2.6      3.9
TOTAL COMPREHENSIVE INCOME - GROUP SHARE        159.3    239.4
                                                                             

(1) In 2012, the translation reserve adjustments on foreign transactions were
related to changes in foreign exchange rates, of which €(4.0) million in
China, €3.7 million in France, €(3.4) million in Hong Kong, €(2.0) million in
the United States, €1.2 million in the United Kingdom and €1.0 million in
South Korea.

In 2011, the translation reserve adjustments on foreign transactions were
related to changes in foreign exchange rates, of which €11.8 million in Hong
Kong, €4.6 million in Brazil, €3.9 million in China, €3.3 million in the
United Kingdom and €2.1 million in the United States. The item also included a
transfer in the income statement following the acquisition of control of
Adbooth Pty Ltd (Australia) for €(0.1) million, JCDecaux Korea Inc. (South
Korea) for €0.2 million and Garmoniya (Ukraine) for €0.1 million.

(2) In 2011, the deferred tax impact on the translation reserve adjustments on
net foreign investments amounted to €(0.1) million. In 2012, the translation
reserve adjustments on net foreign investments had no tax impact.

STATEMENT OF CHANGES IN EQUITY

                                                                                                                                          
                    Equity attributable to owners of the parent company                                              
                    Share    Additional  Retained                                                                               Non-
                    Capital   paid-in      earnings   Other components of equity                                          Total     controlling   Total
                            capital                                                                                  interests    
                                                      Cash    Available-  Translation   Reva-              Total
                                                                                                             Other
In million                                            flow     for-sale     reserve       luation    Other   components
euros
                                             hedges  securities  adjustment   reserves                                         
Equity as of 31   3.4      1,001.6     1,236.7   0.0     (0.1)       4.3          0.9       0.6    5.7         2,247.4  (24.7)       2,222.7
December 2010
Capital           0.0      4.4         (0.5)                                                  0.0         3.9      2.5          6.4
increase ^(1)
Distribution of                                                                            0.0         0.0      (8.1)        (8.1)
dividends
Share-based               4.0                                                               0.0         4.0                  4.0
payments
Debt on
commitments to
purchase
non-controlling                                                                              0.0         0.0                  0.0
interests ^(2)


Change in
consolidation                        (0.6)                                                  0.0         (0.6)    2.0          1.4
scope ^(3)
Consolidated                         212.6                                                  0.0         212.6    3.1          215.7
net income
Other
comprehensive                                                   26.6                  0.2    26.8        26.8     0.8          27.6
income
Total
comprehensive     0.0      0.0         212.6     0.0     0.0         26.6         0.0       0.2    26.8        239.4    3.9          243.3
income
Other                                (0.1)                                                  0.0         (0.1)    0.1          0.0
Equity as of 31   3.4      1,010.0     1,448.1   0.0     (0.1)       30.9         0.9       0.8    32.5        2,494.0  (24.3)       2,469.7
December 2011
Capital           0.0      5.8         (1.0)                                                  0.0         4.8      (0.4)        4.4
increase ^(1)
Distribution of                      (97.6)                                                 0.0         (97.6)   (8.2)        (105.8)
dividends
Share-based               5.5                                                               0.0         5.5                  5.5
payments
Debt on
commitments to
purchase                                                                                     0.0         0.0      (15.5)       (15.5)

non-controlling
interests ^(2)
Change in
consolidation                        1.8                                                    0.0         1.8      3.5          5.3
scope ^(3)
Consolidated                         162.8                                                  0.0         162.8    3.2          166.0
net income
Other
comprehensive                                 (0.2)              (3.3)                       (3.5)       (3.5)    (0.6)        (4.1)
income
Total
comprehensive     0.0      0.0         162.8     (0.2)   0.0         (3.3)        0.0       0.0    (3.5)       159.3    2.6          161.9
income
Other                                (0.2)     0                                             0.0         (0.2)    (0.1)        (0.3)
Equity as of 31   3.4      1,021.3     1,513.9   (0.2)   (0.1)       27.6         0.9       0.8    29.0        2,567.6  (42.4)       2,525.2
December 2012
                                                                                                                                                          

(1) Increase in JCDecaux SA’s additional paid-in capital related to the
exercise of stock options and bonus shares and part of non-controlling
interests in capital increase and capital decrease of controlled entities.

(2) In 2012, new commitments to purchase non-controlling interests related to
changes in consolidation scope. Discounting impacts were recorded in the
income statement in “Consolidated net income” under the line item
“Non-controlling interests” for €(10.0) million in 2012 versus €(5.4) million
in 2011.

(3) In 2011, changes in consolidation scope due to the acquisitions of Adbooth
Pty Ltd (Australia) and Médiakiosk (France) and the additional acquisition of
interests in Chengdu MPI Public Transportation Adv. Co. Ltd (China).

In 2012, changes in consolidation scope, primarily following the partial
disposal without loss of control of Médiakiosk (France) to new minority
shareholders and the takeover of Megaboard Soravia (Austria).

Contact:

JCDecaux SA
Communications Department:
Agathe Albertini, +33 (0) 1 30 79 34 99
agathe.albertini@jcdecaux.fr
or
Investor Relations:
Nicolas Buron, +33 (0) 1 30 79 79 93
nicolas.buron@jcdecaux.fr