H1 2013 Results

• • Revenues up 1.9% to €1,263.5 million
• • Organic revenues virtually flat (-0.1%)
• • Operating margin of €267.8 million, down 0.9%
• • EBIT of €139.2 million, up 3.3%
• • Net income group share of €87.5 million, up 5.5%
• • Free cash flow of €62.2 million
• • Slight decrease in organic revenue expected in Q3 2013

Paris, 29 July 2013 - JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today its 2013 half year financial results.

• Commenting on the 2013 first half results, Jean-François Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said:
• “We are pleased to report that thanks to a better than expected Q2, we were able to maintain our revenues and to deliver sound profitability in the first half, despite a challenging global economy. Whilst keeping a sharp focus on cost control, we continued to enhance our digital portfolio and to expand in fast growing countries which now represent more than 30% of our revenues.
• As far as Q3 is concerned, comparables will be tougher due to the strong positive impact that the 2012 London Olympic Games had on our activity in the UK. While visibility remains low and revenues somewhat volatile, we currently expect a slight decrease in organic revenues.
• Looking forward, we remain convinced that out-of-home retains its strength and attractiveness in an increasingly fragmented media landscape. JCDecaux is well positioned to outperform the advertising market and increase its leadership position in the outdoor advertising industry and we want to take the opportunity to thank all our teams for their enthusiasm and their commitment. The strength of our balance sheet is a key competitive advantage that will allow us to pursue further external growth opportunities as they arise.”

• REVENUES
• Revenues for the six months ending 30 June 2013 increased 1.9% to €1,263.5 million from €1,240.2 million in the same period last year. On an organic basis, revenues were virtually flat (-0.1%). The difference between reported and organic growth was mainly due to the impact of change in perimeter. Core advertising revenues, excluding revenues relating to the sale, rental and maintenance of street furniture products were flat organically over the period (-0.1%).
• In the second quarter, consolidated revenues increased by 4.0% to €697.8 million with organic revenue growth of 1.9% compared to the same period last year. Core advertising revenues increased 1.7% organically in the second quarter.

• Street Furniture
• Revenues for the first half of 2013 declined by 1.0% to €566.4 million from €572.2 million in the first half of last year (-0.6% on an organic basis). Core advertising revenues decreased by 1.0% organically.In Europe, France was nearly flat, the UK was slightly up and the rest of Europe saw a modest decline. In our main Street Furniture markets outside of Europe, Asia-Pacific was up, North America was down and the Rest of the World delivered strong growth.

In the second quarter, revenues increased by 1.3% to €310.7 million. On an organic basis, revenues increased by 2.0% compared to the same period last year, reflecting a sequential improvement in our main Street Furniture markets. Core advertising revenues increased by 1.5% organically.

• Transport
• Revenues for the first half of 2013 increased by 2.8% (+2.8% on an organic basis) to €464.9 million compared to €452.2 million in H1 2012. The UK saw strong growth along with France, reflecting the success of our digital offer with Aéroports de Paris. Revenues in the rest of Europe fell mainly due to the loss of some contracts. Asia-Pacific revenues were up, with a slowdown in the rate of growth in China. Revenues from North America and the Rest of the World showed strong growth.
• In the second quarter, revenues increased by 3.7% to €258.0 million (+3.9% on an organic basis).

• Billboard
• Revenues for the first half of 2013 increased by 7.6% (-5.0% on an organic basis) to €232.2 million against €215.8 million in the same period last year. The difference between reported and organic growth is mainly due to the impact of the acquisition of 25% of Russ Outdoor which has been proportionately consolidated from February 2013. With our Billboard activities being mainly concentrated in Europe, this segment remained very difficult in most markets, although Q2 was sequentially better than Q1.
• In the second quarter, revenues increased by 11.5% to €129.1 million (-2.8% on an organic basis).

• OPERATING MARGIN (1)
• In the first half of 2013, Group operating margin declined by 0.9% to €267.8 million from €270.2 million in the same period last year. The operating margin as a percentage of consolidated revenues was 21.2%, 60 basis points below prior year.

• Street Furniture: In the first half of 2013, operating margin decreased by 2.9% to €169.8 million. As a percentage of revenues, the operating margin was 60bps below H1 2012 level at 30.0%, mostly due to more difficult conditions in many European countries.
• Transport: Operating margin declined by 1.7% to €69.2 million in the first half of 2013. As a percentage of revenues, the operating margin decreased by 70bps to 14.9% primarily due to new contracts which have not yet achieved normalized revenue run rates.
• Billboard: In the first half of 2013, operating margin increased by 15.7% to €28.8 million. As a percentage of revenues, operating margin increased 90bps to 12.4% compared to the first half of 2012. This primarily reflects the acquisition of 25% of Russ Outdoor which was completed in February 2013.

• EBIT (2)
• In the first half of 2013, EBIT increased by 3.3% to €139.2 million compared to €134.8 million in the first half of 2012. As a percentage of consolidated revenues, this represented a 10bps increase to 11.0%, from 10.9% in H1 2012. The consumption of maintenance spare parts was lightly down in H1 2013 compared to H1 2012. Net depreciation and provisions were modestly up compared to the same period last year. Other operational charges and income improved by €7.9 million.
• EBIT before impairment charge on tangible and intangible assets increased to €139.5 million compared to €134.3 in H1 2012. Impairment charges excluding goodwill were not significant in the first half of 2013 and no goodwill impairment had to be recorded.

• NET FINANCIAL INCOME / (LOSS) (3)
• In the first half of 2013, net financial income improved to -€13.5 million compared to -€15.7 million in the first half of 2012, with some positive effects being partially offset by the net interest cost on the €500 million bond issue completed in February.

• EQUITY AFFILIATES
• Share of net profit from equity affiliates was up 4.5% compared to the first half of 2012, at €6.9 million.

• NET INCOME GROUP SHARE (4)
• In H1 2013, net income group share increased by 5.5% to €87.5 million compared to €82.9 million in H1 2012. This is essentially due to the increase in EBIT.

• CAPITAL EXPENDITURE
• Net capex (acquisition of property, plant and equipment and intangible assets, net of disposals of assets) was €87.2 million compared to €69.6 million during the same period last year. This increase is in line with our expectations and reflects Street Furniture capital expenditure following major contract wins such as Amsterdam and Sao Paulo.

• FREE CASH FLOW (5)
• In H1 2013, free cash flow was €62.2 million compared to €150.3 million in H1 2012. This decrease is due to higher capex, higher taxes paid in several countries and to an unfavorable evolution of the change in working capital requirement.

• NET DEBT (6)
• Net debt as of 30 June 2013 amounts to €90.2 million compared to €114.1 million as of 30 June 2012, representing 0.2 times the trailing 12 months operating margin.

• DIVIDEND
• The dividend of €0.44 per share for the 2012 financial year, approved at the Annual General Meeting of Shareholders on 15 May, 2013, was paid on 22 May, 2013, for a total amount of €97.7 million.

• (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 H1 2012 figures are proforma of (i) the impact of IAS 19 (revised) regarding employee benefits and (ii) the change in the P&L presentation of the discounting effects on the provisions for employee benefits (reclassification from the EBIT to the net financial income / loss). The impact on previously published H1 2012 EBIT is €1.5 million
• (3) Net financial income / (loss) = Excluding the impact of actualization of debt on commitments to purchase minority interests (-€3.8 million and -€4.7 million in H1 2013 and H1 2012 respectively)
• (4) Net income group share = H1 2012 figures are proforma of the impact of IAS 19 (revised) regarding employee benefits. The impact on previously published H1 2012 net income group share is €0.5 million
• (5) Free cash flow = Net cash flow from operating activities less capital investments (property, plant and equipment and intangible assets) net of disposals
• (6) Net debt = Debt net of cash managed less bank overdrafts, excluding the non-cash IAS 32 impact (debt on commitments to purchase minority interests), including the non-cash IAS 39 impact on both debt and financial derivatives and including the restatement of loans related to the proportionately consolidated companies

Next information: Q3 2013 revenues: 7 November 2013 (after market)

• 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.