Slide 1: 2023 Full-Year Results
07/03/2024 2023 FULL-YEAR RESULTS
Slide 2: Agenda
AGENDA 01 03 BUSINESS OUTLOOK & OVERVIEW STRATEGY 02 FINANCIAL HIGHLIGHTS // 2
Slide 3: Business Overview
01 BUSINESS OVERVIEW Jean-François Decaux Chairman of the Executive Board and Co-CEO Digital Street Furniture on 5th Avenue, New-York, USA // 3
Slide 4: 2023 Highlights
2023 HIGHLIGHTS Solid business Driving profitability momentum growth +8.7% +10.0% Organic revenue growth Operating margin Above 2019 revenue in Q4 despite a decline in China +22.7% +58.3% Strong digital revenue growth Net result Digital now at 35.3% of total revenue +19.8% >100m€ Operating cash flow
Slide 5: Organic revenue continued to rebound in 2023, Q4 above 2019
ORGANIC REVENUE CONTINUED TO REBOUND IN 2023 Q4 ABOVE 2019 +16.6% China China +12.6% -1.4% +10.3% +8.4% +8.7% +7.8% Organic Revenue Growth vs Previous year (1) 2022 H1 2023 Q3 Q4 2023 vs 2019 -14.7% -14.0% -7.6% +0.7% -8.2% Reported revenue -8.6% -6.5% +0.8% +6.7% -0.9% outside outside outside outsi
Slide 6: All businesses growing organically
ALL BUSINESSES GROWING ORGANICALLY Q4 2023 organic growth (%) (1) FY 2023 organic growth (%) (1) +20.0% Q4 Guidance « around +6% » +18.4% +10.3% +8.7% +6.7% +5.1% +1.3% +0.7% STREET STREET TRANSPORT BILLBOARD GROUP TRANSPORT BILLBOARD GROUP FURNITURE FURNITURE vs 2019 reported +8.9% -24.7% -11.9% -8
Slide 7: 2023 adjusted revenue growth by geography
2023 ADJUSTED REVENUE GROWTH BY GEOGRAPHY UNITED KINGDOM GROUP Organic growth (%) (1) +12.5% FRANCE -6.9% +8.7% -8.2% +3.8% REST OF NORTH EUROPE(2) AMERICA +5.6% +2.5% +5.9% ASIA-PACIFIC +6.7% -15.1%(3) +13.0% REST OF THE -30.5%(4) WORLD +14.1% Reported rev. vs 2019 +4.3% (1) Organic growth = exclud
Slide 8: 2023 adjusted revenue breakdown
2023 ADJUSTED REVENUE BREAKDOWN EUROPE NORTH AMERICA 47.4% BILLBOARD STREET FURNITURE REST OF THE 8.0% REST OF WORLD EUROPE 14.0% 13.2% 29.6% 51.5% 34.5% ASIA- 21.5% PACIFIC 17.8% 10.0% FRANCE TRANSPORT UNITED KINGDOM // 8
Slide 9: Airport advertising revenue is tracking / outpacing eyeballs
AIRPORT ADVERTISING REVENUE IS TRACKING / OUTPACING EYEBALLS AIR TRAFFIC AND REVENUE RECOVERY Air traffic and JCDecaux revenue 2023 vs 2019 Revenue above traffic Revenue above traffic 132% 124% 104% 99% 92% 94% 89% 89% 78% 68% Air Traffic JCDecaux Airport Revenue USA Europe Middle-East Africa Asia-P
Slide 10: Dynamic and highly diversified clients portfolio
DYNAMIC AND HIGHLY DIVERSIFIED CLIENTS PORTFOLIO THE TOP 10 CLIENTS ACCOUNT FOR LESS THAN 14% OF GROUP REVENUE 2023 Revenue by customer category, change vs 2022 +4% +20% Other Fashion / -24% Personal Care & Tokyo Telecom, 13% Luxury Goods Technology 20% 4% +11% Government 5% +16% +3% 5% 14% Retail S
Slide 11: Strong digital revenue contribution
STRONG DIGITAL REVENUE CONTRIBUTION +22.7% organic(1) digital revenue growth in 2023 Group digital revenue as a % of total Group revenue Adjusted figures +16.3% Breakdown of digital revenue by segment in 2023 CAGR Adjusted figures 35.3% +30.9% BILLBOARD CAGR 31.4% 2016/2019 26.9% STREET 25.2% 24.0%
Slide 12: Growing digital across all business segments
GROWING DIGITAL ACROSS ALL BUSINESS SEGMENTS Digital Street Furniture Digital Transport Digital Billboard London, UK Sao Paulo, Brazil Melbourne, Australia 33.6% 38.4% 33.6% +24.9% 30.5% +8.4% 34.0% +24.0% CAGR CAGR CAGR 29.0% 2016/2023 2016/2023 2016/2023 19.7% 8.5% 7.5% 2016 2022 2023 2016 2022 20
Slide 13: 5 countries generate 62% of digital revenue
5 COUNTRIES GENERATE 62% OF DIGITAL REVENUE, STILL SIGNIFICANT ROOM FOR DIGITAL PENETRATION GROWTH Digital penetration (% of country revenue) Top 5 countries for digital revenue 74% 72% 73% 2022 2023 62% (1) 57% 51% 36% 38% 19% 21% Digital Street Furniture, Hamburg, Germany (1) 66% of advertising re
Slide 14: Strong programmatic revenue growth, mainly incremental
STRONG PROGRAMMATIC REVENUE GROWTH MAINLY INCREMENTAL €100.2m Revenue 2023 +63.5% vs 2022 8.0% of digital revenues Harman Kardon BYD Cathay Pacific 20,500 screens (1) IDM Bradesco Persil 22 countries (1) 45,000 screens active on VIOOH including 20,500 screens from JCDecaux, at the end of December 20
Slide 15: Contract wins
CONTRACT WINS Street furniture Transport Europe Europe - France Orléans (bus shelters)… - Norway Oslo transport (metro, trams and buses) Ireland Tesco supermarkets UK First Group Rail Network - UK Blue Water shopping centers Asia-Pacific Asia-Pacific China Shanghai-Cheng Yi Tong metro (234 screens S
Slide 16: Contract renewals
CONTRACT RENEWALS Street furniture Transport Europe Europe - France Toulouse (bus shelters, CIPs, bikes)… - Netherlands Tramways and ferries of Amsterdam (GVB) - Spain Madrid metro - Belgium Antwerp (CIPs(1)) - Spain Santander (bus shelters), San Sebastian de Los Reyes Asia-Pacific Portugal Port of
Slide 17: Increased ESG criteria in public procurement
INCREASED ESG CRITERIA IN PUBLIC PROCUREMENT Street Furniture Metro Airport Bordeaux, France MTR, Hong Kong SAR Bangalore Airport T2, India Bordeaux Hong Kong SAR MTR Bangalore Airport T2 Rating criteria A key partner for MTR, “We are pleased to continue our a shared vision on ESG partnership with J
Slide 18: Solid ESG performance in 2023
SOLID ESG PERFORMANCE IN 2023 ENVIRONMENT SOCIAL GOVERNANCE -22% 95.6% 15% greenhouse gas emissions ESG criteria in variable of our employees have permanent executive compensation reduction vs 2019 contracts (in KTeq CO2)(1) Convergence 100% -21% of the financial and extra-financial budget processes
Slide 19: Best in class ESG ratings
BEST IN CLASS ESG RATINGS A List 76/100 AA 3.4/5 13.7 Highest grade Highest grade Highest grade Highest grade Highest grade A 78 - 100 AAA 5 0 - 10 Platinum Negligible risk A- Medal AA 4 B 70 - 77 10 - 20 Gold Medal A Low risk Category B- 3 Average : 16,9 (5) Category Category 59 - 69 Average (3) BB
Slide 20: Financial Highlights
02 FINANCIAL HIGHLIGHTS David Bourg Chief Financial, IT & Administrative Officer Advertising wrap contributing to public works, Paris, France // 20
Slide 21: 2023 Full-Year Results
2023 FULL-YEAR RESULTS Change In million Euros, except % . Adjusted figures (1) except when IFRS. 2023 2022 % M€ Revenue 3,570.0 3,316.5 +7.6% +253.5 Operating Margin 663.1 602.9 +10.0% +60.2 (2) EBIT before impairment charge 266.2 212.0 +25.5% +54.2 Net income Groupe share before impairment charge,
Slide 22: Enhanced operating margin
ENHANCED OPERATING MARGIN Operating margin evolution Operating margin, adjusted figures (1) Adjusted figures (1) (% of Revenue, FY 2023) +10.0% Vs 2022 +190bp -50bp -160bp +40bp -89.7 253.5 -103.6 +6.2% 25.8% +8.2% 18.6% +7.6% 663.1 11.9% 602.9 10.5% 2022 Revenue Rents & Fees Other operating 2023 ST
Slide 23: EBIT improvement mainly driven by growth in operating margin
EBIT IMPROVEMENT MAINLY DRIVEN BY GROWTH IN OPERATING MARGIN | The increase in net charges positioned between the operating (1) Change margin and the Ebit is mainly explained as follows: In m illion Euros. Adjusted figures except w hen IFRS. 2023 2022 M€ % • Decrease in net amortisation in tangible
Slide 24: Net result up +58.3%
NET RESULT UP +58.3% In million euros +77.0 | IFRS 16 adjustments : positive impact for €30.4m, mainly related to the reversal of net lease liabilities resulting from the contract renegotiations. | Income tax a variation of -€54.9m mainly due to the 30.4 -8.1 improvement of our results. Average tax
Slide 25: Operating cash flows growing, working capital impacted by one-offs
OPERATING CASH FLOWS GROWING, WORKING CAPITAL REQUIREMENTS IMPACTED BY ONE-OFFS | Operating cash flows up €79.1m driven by the increase in operating margin and a decrease in net interests paid, due to the rise in interests received on our liquidity, while our debt is mainly at fixed rates. | Free ca
Slide 26: Selective capex allocation
SELECTIVE CAPEX ALLOCATION 10-year average Capex/Revenue: 8.2% 10.5% In million € 9.6% Adjusted figures(1) 9.9% 10% 9.2% 8.3% excl. 7.9% 8.0% Shanghai 8.0% Metro 7.1% 7.2% 7.1% 8% 375 5.7% 350 355 Excl. €27m Shanghai 6% Shanghai 290 286 Metro €85m Metro: an 242 206 upfront 229 200 payment 224 4%for
Slide 27: Solid financial structure
SOLID FINANCIAL STRUCTURE Stable net debt Well distributed debt maturities Debt maturity profile, in million euros Net Debt as of December 31 2022, IFRS 975.0 825 600 600 600 Free Cash Flow (1.0) 500 Restatement of companies under joint control - IFRS 11 2.4 Sup 150 Dividends (12.8) Equity increase
Slide 28: Outlook & Strategy
03 OUTLOOK & STRATEGY Jean-Charles Decaux Co-CEO Digital columns, Shanghai Pudong Airport, China // 28
Slide 29: A clear strategy for growth
A CLEAR STRATEGY FOR GROWTH Our Identity Our Strategy OOH/DOOH a growth media Increase the market share of OOH ESG at the heart of our business 3 model since inception: Major c.50% of revenue aligned with the 11 Priorities 3 European Taxonomy Optimize Optimise Participate in contract contract OOH po
Slide 30: OOH/DOOH: a growth media
OOH/DOOH: A GROWTH MEDIA 2023 / 2026 ADVERTISING REVENUE CAGR FORECASTS WORLDWIDE +8.1% +6.2% +5.8% +5.5% +4.2% +1.2% +0.8% -0.6% -3.0% DOOH Online OOH(1) Online non- Traditional Professional Audio TV/Video Publishing search OOH Video (1) Including DOOH, Source: 2023 Global Advertising Market Foreca
Slide 31: OOH well positioned in the current media landscape
OOH WELL POSITIONED IN THE CURRENT MEDIA LANDSCAPE PREMIUM INVENTORY AUDIENCE GROWTH DIGITISATION & DATA MEASUREMENT BRANDING & ACTIVATION MEDIA BRAND SAFETY Street Furniture, Paris, France // 31
Slide 32: Creating sustainable value for all stakeholders
CREATING SUSTAINABLE VALUE FOR ALL STAKEHOLDERS 48% of revenue aligned with (1) EU Green Taxonomy State of the art infrastructure for bus & trams Soft mobility JCDecaux shares more than 47% of its resources created to finance living spaces and transport Almost 120,000 jobs supported (2) Cleanliness
Slide 33: 2024 air traffic will exceed pre-COVID levels
2024 AIR TRAFFIC WILL EXCEED PRE-COVID LEVELS Air traffic forecasts 119 111 103 91 97 84 94 79 72 51 39 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Actual Base Scenario Digital, LAX Airport, Los Angeles, USA Source: Airport Council International, September 2023 // 33
Slide 34: Strong position in China, soft recovery
STRONG POSITION IN CHINA, SOFT RECOVERY | Renewed leadership position in China | Domestic audience fully recovered ▪ Active in 12 major cities, 21% urban population coverage | International mobility slow <50% vs.2019 ▪ Major transport platforms secured over the last 3 years with | Soft consumer spen
Slide 35: Programmatic: a strong opportunity for DOOH
PROGRAMMATIC: A STRONG OPPORTUNITY FOR DOOH In billion dollars +14% CAGR 383 339 294 239 261 85% of global Online Display advertising (1) c.$300bn advertising revenue pool 2021 2022 2023 2024 2025 Sources: (1) eMarket October 2022, eMarketer, Insider Intelligence, December 2023. Digital display ads
Slide 36: Programmatic is expected to grow strongly
PROGRAMMATIC IS EXPECTED TO GROW STRONGLY SHARE OF PROGRAMMATIC IN DIGITAL REVENUE IN 2023, TOP 5 COUNTRIES 28.5% 28.1% 19.1% 13.3% 8.0% 7.7% Group Digital Street Furniture, Amsterdam, Netherlands // 36
Slide 37: JCDecaux, the only OOH company with a full-stack digital solution
JCDECAUX, THE ONLY OOH COMPANY WITH A FULL-STACK DIGITAL SOLUTION 5 technical pillars and 2 platforms… … with a dedicated governance Data Solutions Sales & Marketing Committee DMP in 8 countries Members: S&M Experts from main markets 60 data Mission: define key priority features for DPOOH partnershi
Slide 38: AI transforming our digital ecosystem
AI TRANSFORMING OUR DIGITAL ECOSYSTEM AI Lab Creation +50 projects across all JCDecaux markets 4 main application domains : | Targeting and optimisation of campaigns | Visual and text creation for campaign creative € | Operations and support functions productivity gains | Unlocking innovative servic
Slide 39: Main tenders
MAIN TENDERS Street furniture Transport Europe Europe France Nancy, Le Mans… - Italy Rome (metro and buses) Germany Frankfurt Sweden Stockholm (metro & buses) Italy Rome (bus shelters) UK TFL (London Underground) - Portugal Matosinhos (including billboard) Sweden Stockholm (bus shelters) Asia-Pacifi
Slide 40: Ongoing commitment to net zero trajectory
ONGOING COMMITMENT TO NET ZERO TRAJECTORY Our 2023 carbon footprint 239.5 KteqCO2 -22% vs 2019 (Scopes 1, 2 & 3) market-based A necessary evolution of public procurement (10% to 20% of European GDP) * within a perimeter covering 92% of the Group’s scope 3 emissions
Slide 41: N°1 globally in a fragmented market
N°1 GLOBALLY IN A FRAGMENTED MARKET 2023 revenue in Outdoor Advertising ($m) Non OOH Revenues North America revenues Equity method 30% 2,188 2,127 3,552 926 715 2111 1821 1,736 1412 1262 634 309 362 341 292 281 222 188 183 109 JCDecaux (1) Ströer (2) CCO Lamar Outfront Focus Media (3) oOh!media APG|
Slide 42: Closing remarks
CLOSING REMARKS | Solid business momentum | Enhanced financial performance | Ongoing control over opex and selective capex allocation | Guidance for Q1 2024 around +9% organic growth | No dividend proposed to AGM to maintain financial flexibility // 42
Slide 43: Q&A session
01 Q&A SESSION Digital Street Furniture, Amsterdam, Netherlands // 43
Slide 44: Appendices
01 APPENDICES Digital, Shanghai Airport, China // 44
Slide 45: 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 46: Reported growth by activities
REPORTED GROWTH BY ACTIVITIES Reported growth Q4 2023 (%) Reported growth FY 2023 (%) 16.4% +14.6% 9.4% 7.2% +7.6% +5.3% 1.4% +0.8% STREET STREET TRANSPORT BILLBOARD GROUP TRANSPORT BILLBOARD GROUP FURNITURE FURNITURE vs 2019 +8.9% -24.7% -11.9% -8.2% // 46
Slide 47: From operating margin to EBIT
FROM OPERATING MARGIN TO EBIT Change In million Euros. Adjusted figures (1). 2023 2022 M€ Operating margin 663.1 602.9 +60.2 Maintenance spare parts (48.1) (47.0) -1.1 Amortisation for PP&E and intangible assets (288.0) (310.3) +22.3 Depreciation and reversal on provisions for onerous contracts rela
Slide 48: Enhanced margins driven by street furniture
ENHANCED MARGINS DRIVEN BY STREET FURNITURE Operating margin (% of Revenue, FY 2023) EBIT (2) (% of Revenue, FY 2023) Adjusted figures (1) Adjusted figures (1) Vs 2022 +190bp -50bp -160bp +40bp +510bp +40bp -1,150bp +110bp 12.6% 25.8% 7.5% 18.6% 3.7% 11.9% 10.5% -2.4% STREET TRANSPORT BILLBOARD GROU
Slide 49: From EBIT to net income
FROM EBIT TO NET INCOME Change In million Euros. Adjusted figures (1) except when IFRS. 2023 2022 M€ EBIT after impairment charge 282.2 193.0 +89.2 Restatement of IFRS 11, EBIT from companies under joint control (56.6) (43.6) -12.9 Net restatement of IFRS 16, Core business lease contracts of control
Slide 50: Reconciliation between adjusted figures and IFRS: Profit & Loss
RECONCILIATION BETWEEN ADJUSTED FIGURES AND IFRS FIGURES – PROFIT & LOSS 2023 2022 Impact of Impact of IFRS Impact of Impact of IFRS companies 16 from companies 16 from In million Euros Adjusted controlled IFRS Adjusted controlled IFRS under joint under joint (1) (1) control entities control entitie
Slide 51: Reconciliation between adjusted figures and IFRS: Cash flow statement
RECONCILIATION BETWEEN ADJUSTED FIGURES AND IFRS FIGURES – CASH FLOW STATEMENT 2023 2022 Impact of Impact of Impact of Impact of IFRS 16 IFRS 16 companies from companies from In million Euros Adjusted IFRS Adjusted IFRS under joint under joint controlled controlled control (1) control (1) entities e
Slide 52: 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 rev
Slide 53: 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 54: JCDecaux
— JCDecaux