JCDecaux’s 2005 results: 25% increase in net income, organic revenue growth expected to accelerate in 2006

These results and 2004 comparables are published under IFRS standards.

• Revenues up 7.2% to €1,745.2 million, organic revenues up 4.0%, outperforming the global advertising market(1)
• Operating margin rises 2.1% to €474.1 million
• EBIT up 4.1% at €299.0 million
• Net income Group share rises 25.0% to €195.3 million
• First time dividend of €0.40 per share
• Stable free cash flow at €189.2 million
• Major expansion in China
• Acceleration of organic revenue growth expected in 2006

Paris, 15 March 2006 - JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company in Europe and number two worldwide, today announced its results for the year ended December 31, 2005, confirming a sound performance in 2005.

• Revenues
• As reported on 1 February 2006, consolidated revenues increased 7.2% to €1,745.2 million in 2005. Excluding acquisitions and the impact of foreign exchange, organic revenues rose by 4.0%, reflecting solid growth in Street Furniture, a slight decline in Billboard and a very good performance in Transport, which produced double digit growth.

• Operating Margin(2)
• Group operating margin increased by 2.1% to €474.1 million from €464.3 million in 2004. The operating margin as a percentage of consolidated revenues was 27.2%, down 130 basis points compared to the prior period (2004: 28.5%), reflecting the decrease in the Street Furniture operating margin as a percentage of revenues, the higher contribution from the lower-margin Transport division and the slight increase in Billboard profitability.

· Street Furniture: Operating margin decreased by 0.3% to €384.4 million. The operating margin as a percentage of revenues was 41.5%, a decrease of 220 basis points compared to 2004. This decrease was due mainly to the challenging French advertising market, where our revenues declined slightly over the year. However, strong operating margin improvements were recorded in the United Kingdom and Scandinavia, as well as in the United States and Asia-Pacific, where contracts won since 2001 (Los Angeles, Chicago, Vancouver, Bangkok, Seoul etc.) have significantly increased their contribution to the Street Furniture operating margin.

· Billboard: Operating margin increased by 0.7% to €58.6 million. As a percentage of revenues, the Operating Margin reached 13.7% compared to 13.5% in 2004. While revenues decreased over the year, this good performance was mainly driven by tight control on costs and leases, particularly in France, the United Kingdom, Spain, Portugal and Italy.

· Transport: Operating margin increased by 51.7% to €31.1 million, leading to an improvement in operating margin as a percentage of revenues of 130 basis points to 7.9%. This improvement was driven by the strong organic revenue growth reported in most countries and the first-time impact of the Chinese acquisitions (MediaNation and Media Partners International) to the Group’s earnings.

• EBIT(3)
• EBIT increased by a sound 4.1% to €299.0 million, up from €287.1 million in 2004. The Group’s EBIT margin reached 17.1% of consolidated revenues, down from 17.6% in the prior year. The €10 million fine imposed by the French Competition Council - a decision which JCDecaux had appealed in July 2005 - was finally revised to €2 million by the Paris Court of Appeal.

• Net income Group share
• Net income Group share increased by 25.0% to €195.3 million, compared to €156.2 million in 2004. The net income Group share as a percentage of revenues was 11.2%. This strong performance was driven by the increase in EBIT, positive foreign exchange variations within the financial result, the tax rate decrease, the increase of equity affiliates, and the significant decrease of minority interests.

• Dividend
• At the next Annual General Meeting of Shareholders (to be held on May 10th, 2006), the Executive Board will recommend a first-time dividend of €0.40 per share for the 2005 financial year. This decision reflects the strength of JCDecaux’s cash flow and balance sheet while retaining the Group’s ability to capture future growth opportunities. The dividend will be paid on June 12th 2006. The Group expects to pay a dividend on a yearly basis from 2006.

• Capital expenditure
• Net capex (acquisition of tangible and intangible assets, net of disposals) was €141.3 million, compared to €141.5 million in the prior year.

• Cash flows
• The Group continued to generate strong net cash flow from operating activities at €330.5 million, compared to €333.5 million in the prior year.
• Free cash flow(4) decreased by 1.5% to €189.2 million.

• Net debt(5)
• Following the three Chinese acquisitions in 2005 and the purchase of some significant minority interests, financial investments exceeded the amount of free cash flow generated in 2005. As a consequence, net debt (under IFRS standards) as of 31 December 2005 increased by €132.4 million to €601.4 million compared to €469.0 million as of 31 December 2004.

• Major expansion in China
• In 2005, the Group made very good progress in increasing its exposure to the fast-growing Chinese advertising market, both through acquisitive and organic growth. Following the acquisitions of MediaNation and Media Partners International in mainland China, JCDecaux became the number one outdoor advertising operator in the country, with a strong presence in the largest Chinese cities, mainly through bus and subway advertising. In Hong Kong, the Group acquired Texon, the number one bus shelter company, and reinforced its leadership in this market.
• In terms of organic growth, JCDecaux won the Shanghai Airports’ advertising contract, becoming the exclusive partner of the Airport Authorities for 15 years and the Tianjin subway advertising contract, also for 15 years. The Group also won the rights to install and operate 500 newspaper reading stands with scrolling advertising panels in some of the best locations in Beijing, in partnership with the Gehua Group.

Commenting on the 2005 results, Jean-François Decaux, Chairman of the Executive Board and Co-CEO, said: “The strong increase in earnings and the first-time dividend are the result of a sound operational performance in 2005. Once again, our organic revenue growth exceeded the growth of the global advertising market. The dividend payment reflects the strength of our cash flows and the flexibility of our balance sheet, which allow us to return cash to our shareholders while also preserving our ability to fully capture future organic and acquisitive growth opportunities. In 2005, as part of our strategy to expand into emerging markets, JCDecaux penetrated the fast-growing Chinese advertising market, and became the country’s number one outdoor advertising company. Our development in this market, which will represent more than 10% of Group revenues in 2006, and the solid revenue increase from the United States and the rest of Asia-Pacific, will fuel the acceleration of our organic revenue growth, which should exceed 5% in 2006.”

(1) Growth of the global advertising market in 2005: 3.7% (Ad Barometer study realised by the BIPE for OMD France & Interdeco - March 2006) (2) Operating Margin = Revenues less Direct Operating Expenses (excluding Maintenance spare parts) less SG&A expenses (3) EBIT = Earnings Before Interests and Taxes = Operating Margin less Depreciation, amortization and provisions less Maintenance spare parts less Other operating income and expenses (4) Free cash flow = Net cash flow from operating activities less net capital investments (tangible and intangible assets). (5) Net debt = Debt net of 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 2006 revenues: 26 April 2006 (before market)
• Annual General Meeting of Shareholders: 10 May 2006