Jcdecaux Se · EURONEXT:DEC
Jcdecaux — FY2022 Earnings Presentation
56 slides from Jcdecaux's earnings presentation, Mar 9, 2023
Slide 1: 2022 Full-Year Results
2022 FULL-YEAR RESULTS March 9th, 2023 Historic building wrap of La Madeleine church contributing to renovation works, Paris, France
Slide 2: Business Overview FY 2022
BUSINESS OVERVIEW FY 2022 Jean-Charles Decaux Chairman of the Executive Board and Co-CEO 2
Slide 3: 2022 Full-Year Results
2022 FULL-YEAR RESULTS Change In million Euros, except %. Adjusted figures (1) except when IFRS. 2022 2021 % M€ Revenue 3,316.5 2,744.6 +20.8% +571.9 Operating margin 602.9 422.3 +42.8% +180.7 EBIT before impairment charge (2) 212.0 16.3 +1,199.5% +195.7 Net income Group share before impairment char
Slide 4: Revenue Continued to Rebound in 2022
REVENUE CONTINUED TO REBOUND IN 2022 +45.7% +24.1% Organic outside China Revenue Growth +9.6% +21.6% outside +20.8% vs +18.5% China Previous year +16.6% (1) +9.0% +5.1% vs 2021 Q1 Q2 Q3 Q4 2022 2022 Reported 2019 Reported -29.4% -7.9% -14.7% revenue -2.7% -8.6% outside outside China China (1) Organi
Slide 5: 2022 Adjusted Revenue Growth by Segment
2022 ADJUSTED REVENUE GROWTH BY SEGMENT Reported growth (%) Organic growth (%) (1) +21.3% +22.5% +20.8% +18.5% +16.6% +15.9% +15.0% +13.5% Street Transport Billboard Group Furniture Street Transport Billboard Group VS +3.5% -34.3% -12.6% -14.7% Furniture 2019 (1) Organic growth = excluding acquisiti
Slide 6: 2022 Adjusted Revenue Growth by Geography
2022 ADJUSTED REVENUE GROWTH BY GEOGRAPHY Organic growth (%) (1) +45.5% +36.4% +26.3% +20.2% +16.6% +12.1% -2.4% Rest of Rest of the United North Asia-Pacific France Group Europe (2) World Kingdom America Reported rev. -1.0% -34.7% -3.4% -7.4% -15.6% -19.9%(3) -14.7% Vs 2019 (1) Organic growth = exc
Slide 7: 2022 Adjusted Revenue Breakdown
2022 ADJUSTED REVENUE BREAKDOWN Billboard North America EUROPE 57.5% Street Rest of 8.1% 14.9% Furniture the World Rest of 12.6% 29.8% Europe 52.7% Asia-Pacific 32.4% 21.8% Transport 18.0% 9.7% France United Kingdom 7
Slide 8: Dynamic and Highly Diversified Clients Portfolio
DYNAMIC AND HIGHLY DIVERSIFIED CLIENTS PORTFOLIO Top 10 clients represent less than 14% of Group revenue 2022 Revenue by client categories incl. change vs 2021 (1) +19% +41% Other Fashion / Personal Care & Luxury Goods +54% 14% 17% Travel +20% 4% Telecom/Technology 4% +16% +1% 14% Retail 5% Governme
Slide 9: Strong Digital Revenue Contribution
STRONG DIGITAL REVENUE CONTRIBUTION Adjusted figures +16% CAGR Breakdown of digital revenue by segment +31% CAGR +31.4% 2015/2019 2016 2022 +26.9% +25.2% +24.0% Street Street +20.4% Billboard Furniture Billboard Furniture +16.5% 8.5% 13.8% +12.9% 29.8% 51.2% 35.1% 61.8% 2016 2017 2018 2019 2020 2021
Slide 10: Digital Street Furniture
DIGITAL STREET FURNITURE Adjusted figures 30.5% 26.6% 21.9% 22.6% 18.1% 13.9% 8.5% 2016 2017 2018 2019 2020 2021 2022 Street Furniture digital revenue as a % of total Street Furniture revenue N.B.: Years prior to 2017 have not been restated from the IFRS 15 impact, applicable Digital street furnitur
Slide 11: Digital Transport
DIGITAL TRANSPORT Adjusted figures 34.0% 30.3% 27.9% 28.3% 25.8% 22.2% 19.7% 2016 2017 2018 2019 2020 2021 2022 Transport digital revenue as a % of total Transport revenue N.B.: Years prior to 2017 have not been restated from the IFRS 15 impact, applicable Digital airport of Hong Kong, China on Janu
Slide 12: Digital Billboard
DIGITAL BILLBOARD Adjusted figures 29.0% 25.1% 20.6% 19.8% 11.6% 8.7% 7.5% 2016 2017 2018 2019 2020 2021 2022 Billboard digital revenue as a % of total Billboard revenue N.B.: Years prior to 2017 have not been restated from the IFRS 15 impact, applicable Melbourne, Digital billboard, Perth, Australi
Slide 13: Significant Room for Digital Penetration Growth
WHILE 5 COUNTRIES GENERATE 66% OF DIGITAL REVENUE, STILL SIGNIFICANT ROOM FOR DIGITAL PENETRATION GROWTH Adjusted figures Digital penetration (% of country revenue) 72% 72% 62% FY 2022 58% FY 2021 51% (1) 41% 36% 32% 19% 20% Digital Street Furniture, Milan, Italy (1) 60% of advertising revenue 13
Slide 14: Increased Contract Wins
INCREASED CONTRACT WINS Main Contract Wins STREET FURNITURE TRANSPORT Hong Kong Tram shelters Brazil Sao Paulo metro (Lines 4 et 5) and Salvador Colombia CIPs(1) linked to bike sharing system in Bogota China Shanghai metro (5 new lines), Tianjin metro (L10) Spain Merlin Properties shopping centers,
Slide 15: Increased Contract Renewals and Extensions
INCREASED CONTRACT RENEWALS AND EXTENSIONS Main Renewals and Extensions Europe Street furniture Transport Europe France Paris automatic public toilets, Bordeaux CIPs(1), France Paris airports, Marseille and Strasbourg Marseille, Clermont, Suresnes, Sète, Deauville UK Network rail train stations Belg
Slide 16: Leading Metro Media Network in China
LEADING METRO MEDIA NETWORK IN CHINA ▪ Shanghai Metro: renewal of our 13 lines + extension for 5 newly constructed lines in the world largest metro system ▪ Leader for metro advertising in China: 8 cities, 1,116 stations, c.90k panels ▪ More than 34 M PAX/day (1) in 2021 (traffic close to pre-Covid
Slide 17: Leading Metro Media Network in Brazil
LEADING METRO MEDIA NETWORK IN BRAZIL ▪ In 2022, two important contract wins: • Lines 4 and 5 in Sao Paulo for 10 years • Metro Salvador de Bahia for 10 years ▪ Leading operator for metro in Brazil Digital, Sao Paulo metro 100% exclusive in Sao Paulo and Salvador ▪ More than 7.2 M PAX/day in 2022 ▪
Slide 18: Retail Media: A Fast-Growing Activity
RETAIL MEDIA : A FAST-GROWING ACTIVITY Active in retail media in 34 countries Access to sales Data for some contracts A fast growing media Optimisation of campaigns efficiency and measurement Retail Media: a $39bn market in 2022 (1) +20% rev. growth in 2022 vs 2021(1) +18% CAGR forecast for 2022 to
Slide 19: Highly Positive Business Model
HIGHLY POSITIVE BUSINESS MODEL Our commitments since 1964 The Green Taxonomy 1. 49.5% of Revenues(1) aligned Favourable infrastructure Soft mobility for public transport Useful services Development of in cities land transport 2. 53.9% of Investments(1) aligned 3. 69.6% of Operating Costs(1) aligned
Slide 20: Best in Class ESG Performance
BEST IN CLASS ESG PERFORMANCE A- 76/100 AA 3.6/5 13.5 Note plus élevée Note plus élevée Note plus élevée Note plus élevée Note plus élevée A 75 - 100 AAA 5 0 - 10 Médaille Risque A- Platinum AA négligeable 4 B 67 - 74 10 - 20 Médaille Gold A Moyenne de la Risque faible B- 3 catégorie : 16,7 (5) Moye
Slide 21: Enhanced Environmental Performance
ENHANCED ENVIRONMENTAL PERFORMANCE 100% 70% of our electricity consumption covered by reduction in the power consumption of a 2 m2 billboard electricity from renewable sources through the combined action of energy-saving technologies and intelligent lighting - 6,3% - 27,1% 85% greenhouse gas emissio
Slide 22: Strong Social and Societal Performance
STRONG SOCIAL AND SOCIETAL PERFORMANCE -26 % 96,6 % 32,8 % of the accident frequency of our employees have permanent of women in Executive Management rate (evolution in % vs. 2019) contracts Committees 100 % 100 % 15 % of countries respect the Charter of of key suppliers have signed the Supplier ESG
Slide 23: ESG in Public Procurements, Encouraging but Still Too Slow
ESG IN PUBLIC PROCUREMENTS, ENCOURAGING BUT STILL TOO SLOW Exclusive contracts won with a strong sustainability commitment Panel of tenders Aix-Marseille- submitted by JCDecaux in 2022 throughout the world Provence, France 16 years exclusive street furniture contract 61% of tenders have environmenta
Slide 24: Financial Highlights
FINANCIAL HIGHLIGHTS David Bourg Chief Financial, IT & Administrative Officer 24
Slide 25: 2022 Full-Year Results
2022 FULL-YEAR RESULTS Change In million Euros, except %. Adjusted figures (1) except when IFRS. 2022 2021 % M€ Revenue 3,316.5 2,744.6 +20.8% +571.9 Operating margin 602.9 422.3 +42.8% +180.7 EBIT before impairment charge (2) 212.0 16.3 +1,199.5% +195.7 Net income Group share before impairment char
Slide 26: Strong Operating Leverage on Operating Margin
STRONG OPERATING LEVERAGE ON OPERATING MARGIN In million Euros XX€ YOY Variation Adjusted figures (1) +180.7 1 200 +20.8% +18.1% +15.5% 1 000 -222.3 +42.8% 800, - +571.9 -169.0 - 600, - 400, 602.9 422.3 200, - FY 2021 Revenue Rents & Fees Operating costs FY 2022 (1) Adjusted figures include our pror
Slide 27: Strong EBIT Improvement Mainly Driven by Operating Margin Growth
STRONG EBIT IMPROVEMENT MAINLY DRIVEN BY THE GROWTH IN OPERATING MARGIN In million Euros Adjusted figures (1) ▪ Depreciation and amortization expenses: +€9.7 million (+2.5% year-on-year) due to an increase in +195.7 dismantling depreciation related to inflation and right- of-use depreciation of real
Slide 28: Margin Enhancement
MARGIN ENHANCEMENT Operating margin EBIT (2) (% of revenue) (% of revenue) Adjusted figures (1) Adjusted figures (1) +140bp +440bp +400bp +280bp +400bp +520bp +1,300bp +580bp 0.5% excluding capital gain from Interstate JCDecaux revaluation 5.1% excluding capital gain 23.9% from Interstate JCDecaux r
Slide 29: Net Result Back to Positive Territory
NET RESULT BACK TO POSITIVE TERRITORY In million Euros Adjusted figures (1) ▪ Net profit from Equity Affiliates: a decrease of €40.0 million mainly due to an impairment on Clear Media +146.4 in connection with the historically low level of activity in China in 2022 due to mobility restrictions; 10,5
Slide 30: Strong Cash from Operating Activities, Working Capital Under Control
STRONG CASH FROM OPERATING ACTIVITIES, WORKING CAPITAL UNDER CONTROL Change In million Euros. Adjusted figures (1) 2022 2021 M€ Operating margin 602.9 422.3 +180.7 Maintenance spare parts (39.0) (29.8) -9.2 Non-core business leases, IFRS 16 (2) (56.2) (52.6) -3.5 Income tax paid (56.0) (26.2) -29.8
Slide 31: Selective Capex Allocation
SELECTIVE CAPEX ALLOCATION 10-year average Capex/Revenue: 8.0% Shanghai 600 In million €. 10.5% Metro: an11% Adjusted figures upfront 9.6% payment 8.0% over two 500 excl. 8.3% 8.3% years 9% 7.9% 8.0% Shanghai Metro (incl. 7.1% 7.2% 7.1% c.€60m in 400 2023) for a7% 350 15-year 375 5.7% contract Incl.
Slide 32: Slight Increase in Financial Debt Mainly for M&A Activity
SLIGHT INCREASE IN FINANCIAL DEBT MAINLY FOR M&A ACTIVITY In million Euros. Adjusted figures (1) except when IFRS. 2022 Net Debt as of December 31st 2021, IFRS 924.5 Free Cash Flow 43.2 Restatement of companies under joint control - IFRS 11 12.1 Dividends (17.8) Equity increase & movements on treasu
Slide 33: Strong Liquidity
STRONG LIQUIDITY ▪ Strong liquidity: ▪ €1,936.5m cash on hands ▪ €825m committed revolving credit facility, fully unused, maturing mid 2026 ▪ Secured debt profile: ▪ Upcoming bond maturities in 2023 and 2024 fully covered by cash on hands ▪ Average debt maturity: 3.1 years ▪ Average cost of debt: 1.
Slide 34: Outlook and Strategy
OUTLOOK AND STRATEGY Jean-François Decaux Co-CEO 34
Slide 35: OOH/DOOH: A Growth Media
OOH/DOOH: A GROWTH MEDIA 2022 / 2027 advertising revenue growth forecasts worldwide +41.8% +31.6% +5.8% +0.8% -13.7% -16.0% Online OOH (1) TV/Video Audio Magazines Newspapers (1) Including DOOH Source: 2022 Global end-of-year forecast, GroupM, December 2022 35
Slide 36: OOH Gaining Market Share: Example of Brazil
OOH GAINING MARKET SHARE: EXAMPLE OF BRAZIL Share of OOH in total media in Brazil ▪ 8th largest advertising market in the 10.9% 10.5% world(1) 7.7% 8.6% ▪ OOH is a dynamic market in Brazil 3.0% ▪ OOH market share in total media was at 2012 2017 2019 2021 9M 2022 just 3% in 2012 following the Clean C
Slide 37: Airport Passenger Recovery Underway
AIRPORT PASSENGER RECOVERY UNDERWAY Air traffic in 2022 Air traffic forecasts AirAir traffic byvs traffic geography 2019, H1,vs 2019 H2, FY 90% 121 89% 77% 80% 113 Optimistic 77% 75% 72% 104 91 97 scenario 84 92 Pessimistic 79 51% 53% scenario Full year / Régions 72 51 39 US Europe MEA APAC USA Euro
Slide 38: Airport Advertising Revenue Is Tracking Eyeballs
AIRPORT ADVERTISING REVENUE IS TRACKING EYEBALLS Air traffic and revenue recovery Air traffic by geography 2022 and JCDecaux 2022 revenue vs 2019 99% 90% 92% 77% 80% 72% 70% 59% 61% 51% Air Traffic JCDecaux Airport Revenue USA Europe Moyen-Orient Middle-East Asie-Pacifique Asia-Pacific Monde World A
Slide 39: Inflection Point in China from March as Mobility Is Returning to Normal
INFLECTION POINT IN CHINA FROM MARCH AS MOBILITY IS RETURNING TO NORMAL ▪ End of Covid mobility restriction measures from December for Passenger traffic vs 2019 local mobility, beginning of January for international mobility 2019 ▪ A drop in mobility in Q4, and low levels in January and February ▪ I
Slide 40: Programmatic: A Strong Opportunity for DOOH
PROGRAMMATIC : A STRONG OPPORTUNITY FOR DOOH In billion dollars +15% 271 CAGR 224 188 85% of global Online Display 147 advertising (1) 127 106 c.$200bn advertising revenue pool 2019 2020 2021 2022 2023 2024 Sources: Zenith’s Programmatic Marketing Forecasts, Global Programmatic Advertising Spending
Slide 41: Strong Programmatic Revenue Growth Which Is Mostly Incremental
STRONG PROGRAMMATIC REVENUE GROWTH WHICH IS MOSTLY INCREMENTAL €61m Revenue in 2022 x2.0 vs 2021 5.9% of digital revenue Thorne Bobbi Brown Kyndril 16,000 screens TikTok VELO.COM Tchibo 19 countries 41
Slide 42: Programmatic Expected to Grow to 20%/30% of DOOH Spend by 2025
PROGRAMMATIC IS EXPECTED TO GROW TO 20%/30% OF TOTAL DOOH ADVERTISING SPEND BY 2025 WITH MORE THAN 50% OF INCREMENTAL REVENUE Share of programmatic in digital revenue in 2022, Top 5 countries 28.0% 20.7% 19.7% 13.2% 9.4% 5.8% Group Group 42
Slide 43: Main Tenders
MAIN TENDERS Street furniture Transport Europe Europe Toulouse, Colmar, Montrouge, Menton, Levallois, Lille Madrid metro CIPs, Roubaix, Niort Airports: Venice, Verona, Treviso Matosinhos (including billboard) Oslo Transports Brussels First Group Rail network Hackney Frederiksberg Tesco supermarkets
Slide 44: Group Climate Strategy in Line with the Paris Agreement
GROUP CLIMATE STRATEGY IN LINE WITH THE PARIS AGREEMENT A necessary evolution of public procurement (10% to 20% of European GDP) 44
Slide 45: N°1 Globally in a Fragmented Market
N°1 GLOBALLY IN A FRAGMENTED MARKET 3,493 2022 revenue in Outdoor Advertising (m$) Non OOH Revenues North America revenues Equity method 30% 2,395 1,829 3,209 1,033 791 2,032 1,772 1,362 1,470 1,038 284 411 305 292 291 250 222 188 155 109 (1) (2) (3) (3) (4) (4) (5) (6) (6) (3) (5) JCDecaux CCO Lama
Slide 46: Conclusion
CONCLUSION ▪ Good set of results reflecting the rebound : ▪ All geographies and business segments growing double digit except China impacted by historically low mobility. ▪ Strong improvement in all operational indicators ▪ Positive FCF including exceptional payments for advertising rights to renew
Slide 47: Q1 2023 Outlook
Q1 2023 OUTLOOK «As far as Q1 2023 is concerned, we now expect an organic revenue growth rate at around +2.5% including a double-digit revenue decline in China where we start seeing an inflection point from March as mobility is returning to normal.» 47
Slide 48: Appendices
APPENDICES 48
Slide 49: Disclaimer – Adjusted Operating Aggregates
DISCLAIMER – ADJUSTED OPERATING AGGREGATES ▪ Our Adjusted operating aggregates are: ▪ As regards the Profit & Loss, all aggregates down to the EBIT; ▪ As regards the Cash flow statement, all aggregates down to the free cash flow. ▪ Adjustments relate to: ▪ IFRS 11, applicable from January 1st, 2014,
Slide 50: From Operating Margin to EBIT
FROM OPERATING MARGIN TO EBIT In million Euros. Adjusted figures (1). Change 2022 2021 M€ Operating margin 602.9 422.3 +180.7 Maintenance spare parts (47.0) (38.4) -8.6 Amortisation and provisions for PP&E and intangible assets (310.3) (301.9) -8.4 Depreciation and reversal on provisions for onerous
Slide 51: From EBIT to Net Income
FROM EBIT TO NET INCOME Change In million Euros. Adjusted figures (1) except when IFRS. 2022 2021 M€ EBIT after impairment charge 193.0 8.7 +184.3 Restatement of IFRS 11, EBIT from companies under joint control (43.6) (39.5) -4.1 Net restatement of IFRS 16, Core business lease contracts of controlle
Slide 52: Reconciliation Between Adjusted and IFRS Figures – Profit & Loss
RECONCILIATION BETWEEN ADJUSTED FIGURES AND IFRS FIGURES – PROFIT & LOSS 2022 2021 Impact of Impact of IFRS Impact of Impact of IFRS companies 16 from companies 16 from In million Euros Adjusted under joint controlled IFRS Adjusted under joint controlled IFRS control entities (1) control entities (1
Slide 53: Reconciliation Between Adjusted and IFRS Figures – Cash Flow Statement
RECONCILIATION BETWEEN ADJUSTED FIGURES AND IFRS FIGURES – CASH FLOW STATEMENT 2022 2021 Impact of Impact of Impact of Impact of IFRS companies IFRS 16 from companies 16 from Adjusted IFRS Adjusted IFRS In million Euros under joint controlled under joint controlled control entities (1) control entit
Slide 54: Financial Definitions
FINANCIAL DEFINITIONS Organic growth The Group’s organic growth corresponds to the adjusted revenue growth excluding foreign exchange impact and perimeter effect. The reference fiscal year remains unchanged regarding the reported figures, and the organic growth is calculated by converting the revenu
Slide 55: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation 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 publica
Slide 56: JCDecaux
JCDecaux