2014 ANNUAL RESULTS March 5 th , 2015 New digital / Old Street - PowerPoint PPT Presentation

2014 ANNUAL RESULTS March 5 th , 2015 New digital / Old Street Roundabout in the heart of London's Tech City, UK

BUSINESS OVERVIEW Jean-Charles Decaux Chairman of the Executive Board and Co-CEO

2014 RESULTS In million Euros, except %. Adjusted figures (1) except when IFRS. 2014 2013 Revenues 2,813.3 +5.1% ► 2,676.2 Operating margin 630.0 +1.0% ► 623.6 EBIT before impairment charge (2) 334.9 -4.7% ► 351.6 Net income Group share before impairment charge, IFRS (3) 215.6 -1.9% ► 219.8 194.3 90.5 +114.7% ► Net income Group share, IFRS Net cash flow from operating activities ► 498.1 401.9 +23.9% Free cash flow ► 297.9 179.8 +65.7% Net debt (4) as of end of period, IFRS (83.5) ► 1.7 Net debt / Operating margin, IFRS -0.2x 0.0x (1) Adjusted figures include our prorata share in companies under joint control (accounted for using the equity method under IFRS 11). (2) The impact of the impairment charge on EBIT following the impairment tests conducted corresponds to a - € 7.1m impairment undertaken on the net assets of some of our companies under joint control in 2014 (- € 6.4m in 2013), a - € 27m impairment on intangible assets and PP&E in 2014 (- € 124.6m on goodwill in 2013) and a € 2.3m net reversal on provisions for onerous contracts in 2014 (- € 1.0m in 2013). (3) The negative impact of the impairment charge (described in note 2) on Net income Group share corresponds to - € 21.3m (net of tax and net of the impact on minorities). The comparable figure was - € 129.3m in 2013. (4) 2013 IFRS Net debt figure is proforma of the retrospective application of IFRS 11 (under which companies under joint control are accounted for using the equity method). The impact on previously published 2013 Net debt is € 33.7m. 3 Please refer to page 51 for financial definitions.

2014 ADJUSTED REVENUES GROWTH BY SEGMENT Organic growth (%) (1) Reported growth (%) +7.0% +6.4% +6.2% +5.1% +4.3% +3.8% -2.4% -2.6% Street Street Furniture Transport Billboard Group Furniture Transport Billboard Group 4 (1) Organic growth = excluding acquisitions / divestitures and the impact of foreign exchange.

2014 ADJUSTED REVENUES GROWTH BY REGION Organic growth (%) (1) +14.5% +7.3% +4.1% +3.8% +1.6% +0.4% -5.8% Asia- United Rest of the North Europe (2) France Group Pacific Kingdom World America (1) Organic growth = excluding acquisitions / divestitures and the impact of foreign exchange. (2) Excluding France and the United Kingdom. 5

2014 ADJUSTED REVENUES BREAKDOWN North America Rest of Billboard Street the World 6.0% Europe (1) Furniture 16.3% 9.6% 27.2% United Kingdom 11.8% 45.3% 38.4% 22.1% 23.3% Transport France Asia- Pacific (1) Excluding France and the United Kingdom. 6

FAST-GROWING COUNTRIES NOW A THIRD OF GROUP REVENUES In million € . Adjusted figures. 34% 32% 29% 26% 23% 21% 19% 952 16% 859 764 638 8% 534 408 400 339 134 2004 2007 2008 2009 2010 2011 2012 2013 2014 Revenues from fast-growing countries Fast-growing countries' revenues as a % of Group revenues "Fast growing countries” include Central & Eastern Europe (excl. Austria), Baltic countries, Russia, Turkey, Ukraine, Latin America, Asia (China incl. Hong Kong and Macau, Mongolia, Thailand, South Korea, Singapore, India), Africa, Middle East, Central Asia. 7

STRONG GROWTH FROM DIGITAL: +37% INCREASE IN REVENUES IN 2014  UK, Greater China and US are still the largest contributors 17.9% 15.3% 13.3% 10.0% 8.3% 8.9% 6.8% 5.9% 4.1% 3.3% 2010 2011 2012 2013 2014 Digital revenues as a % of total revenues Transport digital revenues as a % of total Transport revenues UK’s largest indoor advertising screen (120sqm HD screen) in Waterloo station, London 8 Adjusted figures

RETURN TO POSITIVE ADJUSTED ORGANIC REVENUES GROWTH IN EUROPE AFTER 2 YEARS OF DECLINE 2011 2012 2013 2014 7.7% 4.1% 2.6% 2.0% 1.6% 1.2% 0.8% 0.6% 0.4% -1.5% -5.0% France United Kingdom Rest of Europe -5.6% 9

ASIA-PACIFIC NOW THE 2 ND LARGEST REGION  13% organic growth CAGR (2006-14)  Greater China is the major contributor for Asia-Pacific revenues  Strong structural growth drivers remain unchanged for future profitable growth Revenues x2.6 +13% CAGR 656 252 2006 2014 Asia-Pacific adjusted revenues 10 Shanghai metro, China

2014 TOP 10 CLIENT CATEGORIES  Well diversified client base – 96% of world top 100 advertisers are JCDecaux clients  Top 10 clients represent only 13% of total revenues 2014 YoY pts # Category revenues % change 1 Retail 15.7% +0.3% 2 Entertainment, Leisure & Film 11.9% -0.6% 3 Personal Care & Luxury Goods 11.2% +0.2% 4 Finance 9.1% -1.0% 5 Food & Beverage 7.7% = 6 Automobile 7.0% -0.6% 7 Services 6.6% +0.2% 8 Fashion 6.3% +0.6% 9 Telecom & Technology 5.8% -1.2% 10 Travel 5.3% +0.3% Amsterdam, Netherlands 11

BUSINESS HIGHLIGHTS  New contracts & renewals  New generation of bus shelters in Paris  JCDecaux’s Tesco SmartScreen channel goes live across the UK  Edinburgh becomes exclusive with JCDecaux  Roll-out of premium digital Street Furniture assets  Integration of 200 small cells in Amsterdam  Ramp-up of our Latin-American platform following the successful integration of Eumex  Acquisition of the largest outdoor advertising operator in Africa (1)  Cemusa: update on the acquisition process (1) The closing of the transaction is subject to the usual regulatory requirements. 12

RECENT CONTRACT WINS & RENEWALS New contracts Contract renewals / extensions STREET FURNITURE STREET FURNITURE Mongolia Ulan Bator Germany Cologne bus/tram shelters & free-standing 2m² UK Edinburgh Sweden Stockholm free-standing 2m², columns and automatic public toilets Panama Soho Mall in Panama City France Scaffoldings / building sites in Paris TRANSPORT TRANSPORT Belgium Brussels metro and buses Finland Helsinki City Transport Luxembourg Luxembourg airport Oman Muscat International Airport and Salalah Airport Peru Lima International Airport Brazil Rio de Janeiro Tom Jobim International Airport BILLBOARD In red: digital offer UK Leeds UK Edinburgh 13

NEW GENERATION OF BUS SHELTERS IN PARIS  695 bus shelters installed as of March 2 nd (out of 2,000 total)  Bus shelters have been designed by renowned designer Marc Aurel  Bus shelters provide a broad range of new services enhancing the city dwellers experience: universal USB ports, LiveTouch screens, real-time bus information, photovoltaic roofs  Around 100 bus shelters will be fitted with a 32 inch digital touch screen providing information on local services New bus shelter designed by Marc Aurel, Paris, France 14

A FULLY OPTIMIZED NETWORK OF DIGITAL SCREENS TARGETING CONSUMERS VIA THEIR PURCHASING HABIT  400 screens across 400 largest Tesco stores in the UK  Optimized scheduling based on audience behavior/sales (11bn data points)  Average +20% sales uplift during SmartScreen campaigns Tesco supermarket in London, UK 15

EDINBURGH BECOMES EXCLUSIVE WITH JCDECAUX  First important city in the UK to combine Street Furniture and Large Format in one tender  10 year contract (+5 year option) mutually beneficial for both JCDecaux and Edinburgh  Edinburgh is the strongest economy in the UK outside of London Bus shelter designed by Lord Norman Foster on Princes Street, Edinburgh, UK 16

ROLL-OUT OF PREMIUM DIGITAL STREET FURNITURE ASSETS  An increasing number of cities wants digital to be part of their Street Furniture core program  São Paulo, Paris-La Défense, Edinburgh, Cologne, Stockholm, etc… are recent examples Digital panels in La Défense, Paris’ business district, France 17

INTEGRATION OF 200 SMALL CELLS IN AMSTERDAM  JCDecaux high density network in Amsterdam perfectly matches Vodafone’s need for a better coverage  Great operational and technological success  JCDecaux has over 100,000 street furniture assets across key Vodafone markets Bus shelter with an integrated small cell in Amsterdam, Netherlands 18

LATAM PLATFORM DRIVING ORGANIC GROWTH  Eumex acquisition closed on March 7 th , 2014  JCDecaux now generates revenues of c. € 100m in Latin America on a FY basis  Recent organic wins:  Soho Mall in Panama City  Lima Intl airport  Rio de Janeiro Intl airport  Accelerating growth potential for OOH in the region: +11% on average in 2015/2016 (Source: ZenithOptimedia) Bogota, Colombia 19

ACQUISITION OF THE LARGEST OUTDOOR ADVERTISING OPERATOR IN AFRICA  JCDecaux has come to an agreement to acquire (1) Continental, which operates in 14 African countries  This new platform will allow JCDecaux to further expand in Africa  We expect this transaction to be both OM and EPS accretive in its first full year following closing Algeria Cameroon Uganda Countries where JCDecaux operates Tanzania Countries where JCDecaux will operate once the acquisition of Continental will be finalized Angola Countries where JCDecaux and Continental operate Zambia Mauritius Malawi Zimbabwe Namibia Botswana Swaziland South Lesotho Africa Johannesburg, South Africa (1) In partnership (70%/30%) with Royal Bafokeng Holdings 20