AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

JCDecaux SA

Earnings Release Jul 30, 2015

1455_iss_2015-07-30_aeef1249-3861-4805-b1aa-0fd03ce00c4d.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

H1 2015 Results

  • Adjusted revenues up +11.9% to €1,459.7 million
  • Adjusted organic revenues up +2.9%, with a moderate Q2 (+2.0%)
  • Adjusted operating margin of €285.7 million, up +11.3%
  • Adjusted EBIT, before impairment charge, of €134.6 million, up +8.2%
  • Net income Group share, before impairment charge, of €78.6 million, up 6.4%
  • Adjusted free cash flow of €109.2 million, up +7.8%
  • Organic growth of adjusted revenues in Q3 expected to be in line with our H1 performance

Paris, 30th July, 2015 – JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today its 2015 half year financial results.

Following the adoption of IFRS 11 from 1st January, 2014, the operating data presented below is adjusted to include our prorata share in companies under joint control, and therefore is comparable with historical data. Please refer to the paragraph "Adjusted data" on page 6 of this release for the definition of adjusted data and reconciliation with IFRS.

The 2014 comparative figures are restated from the retrospective application of IFRIC 21 "Levies", applicable from 1 st January, 2015. The application of IFRIC 21 leads to the recognition in full of the levies immediately when the obligation event arises in accordance with the legislation. The impact on previously published H1 2014 figures is -€5.2 million on Net income Group share (of which -€6.7 million on the Adjusted operating margin and on the Adjusted EBIT) and has a nil impact on the Adjusted free cash flow.

Commenting on the 2015 first half results, Jean-François Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said:

"We are pleased to report an increase of 11.9% of our H1 2015 revenues at €1,459.7 million. Our organic revenue growth of 2.0% in Q2 is in line with our guidance and leads to an organic growth rate of 2.9% in H1 driven by the performance of Street Furniture and Transport which was partly offset by the weakness of our Billboard division. Our digital revenues were up very strongly and now represent 10% of total revenues with a growing contribution from our Street Furniture division where we recently installed the very first 84ʺ LCD screens in the best locations of cities like Hamburg and Edinburgh. More cities will follow in the second half of this year.

Our overall operating margin rate was almost flat. Our margin expansion in Street Furniture was offset by a margin reduction in both Transport and Billboard due to the slowdown in some emerging countries and a different revenue mix in our large Chinese Transport division. Free cash flow generation was strong despite higher capex.

Bearing in mind the limited visibility and the on-going volatility in most markets, we currently anticipate Q3 organic revenue growth to be in line with our H1 performance.

Looking forward, we remain convinced that out-of-home retains its strength and attractiveness in an increasingly fragmented media landscape. With our accelerating exposure to emerging markets, our growing premium digital portfolio, our ability to win new contracts and the high quality of our teams across the world, we believe we are well positioned to outperform the advertising market and increase our leadership position

in the outdoor advertising industry through profitable market share gains. The strength of our balance sheet is a key competitive advantage that will allow us to pursue further external growth opportunities as they arise."

ADJUSTED REVENUES

Adjusted revenues for the six months ending 30th June 2015 increased by 11.9% to €1,459.7 million from €1,304.8 million in the same period last year. On an organic basis (i.e. excluding the positive impact from foreign exchange variations – especially emerging market currencies – and the positive impact from changes in perimeter), adjusted revenues grew by 2.9%. Adjusted advertising revenues, excluding revenues related to sale, rental and maintenance, increased by 2.9% on an organic basis in the first half of 2015.

In the second quarter, adjusted revenues increased by 10.9% to €810.7 million. On an organic basis, adjusted revenues grew by 2.0% compared to Q2 2014.

Adjusted advertising revenues, excluding revenues related to sale, rental and maintenance, increased by 2.0% on an organic basis in Q2 2015.

Adjusted revenues

€m 2015 2014 Change 15/14
Q1 Q2 H1 Q1 Q2 H1 Q1 Q2 H1
Street Furniture 291.3 364.2 655.5 260.3 337.3 597.6 +11.9% +8.0% +9.7%
Transport 268.9 325.3 594.2 216.7 266.4 483.1 +24.1% +22.1% +23.0%
Billboard 88.8 121.2 210.0 97.1 127.0 224.1 -8.5% -4.6% -6.3%
Total 649.0 810.7 1,459.7 574.1 730.7 1,304.8 +13.0% +10.9% +11.9%

Adjusted organic revenues growth (a)

Change 15/14
Q1 Q2 H1
Street Furniture +5.8% +4.7% +5.2%
Transport +6.6% +2.9% +4.5%
Billboard -6.3% -6.9% -6.6%
Total +4.0% +2.0% +2.9%

a. Excluding acquisitions/divestitures and the impact of foreign exchange

Adjusted revenues by geographic area

€m H1 2015 H1 2014 Reported
growth
Organic
growth(a)
Europe(b) 389.8 362.1 +7.6% +7.8%
Asia-Pacific 364.6 286.6 +27.2% +5.6%
France 299.8 304.2 -1.4% -1.4%
United Kingdom 163.6 150.6 +8.6% -3.2%
Rest of the World 145.4 124.8 +16.5% +0.3%
North America 96.5 76.5 +26.1% +2.9%
Total 1,459.7 1,304.8 +11.9% +2.9%

a. Excluding acquisitions/divestitures and the impact of foreign exchange

b. Excluding France and the United Kingdom

Please note that the geographic comments below refer to organic revenue growth.

STREET FURNITURE

First half adjusted revenues increased by 9.7% to €655.5 million (+5.2% on an organic basis), driven by a strong performance in Europe and emerging countries.

First half adjusted advertising revenues, excluding revenues related to sale, rental and maintenance were up 5.6% on an organic basis compared to the first half of 2014.

In the second quarter, adjusted revenues increased by 8.0% to €364.2 million. On an organic basis, adjusted revenues increased by 4.7% compared to the same period last year. Adjusted advertising revenues, excluding revenues related to sale, rental and maintenance were up 5.5% on an organic basis in Q2 2015 compared to Q2 2014.

TRANSPORT

Adjusted revenues increased by 23.0% to €594.2 million (+4.5% on an organic basis) during the first half of 2015, driven by Europe and the Rest of the World.

In the second quarter, adjusted revenues increased by 22.1% to €325.3 million compared to the same period last year (+2.9% on an organic basis, reflecting the slowdown in Greater China).

BILLBOARD

Adjusted revenues during the first half of 2015 fell by 6.3% to €210.0 million (-6.6% on an organic basis). Our Billboard business continues to suffer from both a lack of consolidation in Europe and the difficult economic situation in Russia. In France, JCDecaux complies with the new law "Engagement national sur l'environnement", also called "Loi Grenelle 2" since July 2015, the dismantling of the billboards is expected to have a slight impact on the segment's performance in H2 this year.

In the second quarter, adjusted revenues decreased by 4.6% to €121.2 million compared to Q2 2014 (- 6.9% on an organic basis).

ADJUSTED OPERATING MARGIN (1)

In the first half of 2015, adjusted operating margin increased by 11.3% to €285.7 million from €256.8 million in the same period last year. The adjusted operating margin as a percentage of revenues was 19.6%, -10bp below prior year.

On an organic basis, adjusted operating margin increased by €9.0m, i.e. a 3.5% growth compared to the same period last year.

H1 2015 H1 2014 Change 15/14
€m % of
revenues
€m % of
revenues
Change
(%)
Margin rate
(bp)
Street Furniture 198.3 30.3% 174.6 29.2% +13.6% +110bp
Transport 75.8 12.8% 70.1 14.5% +8.1% -170bp
Billboard 11.6 5.5% 12.1 5.4% -4.1% +10bp
Total 285.7 19.6% 256.8 19.7% +11.3% -10bp

Street Furniture: In the first half of 2015, adjusted operating margin increased by 13.6% to €198.3 million. As a percentage of revenues, the adjusted operating margin increased by +110bp to 30.3%, compared to the first half of 2014, mainly driven by the increase in revenues.

Transport: In the first half of 2015, adjusted operating margin increased by 8.1% to €75.8 million. As a percentage of revenues, the adjusted operating margin decreased by -170bp to 12.8% compared to the first half of 2014, primarily due to a different revenue mix in China and the beginning of the new contract of the Metro of Guangzhou.

Billboard: In the first half of 2015, adjusted operating margin decreased by -4.1% to €11.6 million. As a percentage of revenues, adjusted operating margin increased by +10bp to 5.5% compared to the first half of 2014. The decrease in value of the adjusted operating margin is mainly due the decrease in revenues linked to the economic situation in Russia. The adjusted operating margin ratio improved thanks to a decrease in operating costs across all geographies.

ADJUSTED EBIT (2)

In the first half of 2015, adjusted EBIT before impairment charge increased by 8.2% to €134.6 million compared to €124.4 million in the first half of 2014. As a percentage of revenues, this represented a - 30bp decrease to 9.2%, from 9.5% in H1 2014. The consumption of maintenance spare parts was slightly up in H1 2015 compared to H1 2014. Net amortization and provisions were up compared to the same period last year. Other operating income and expenses impacted the P&L negatively.

No impairment charge on goodwill and tangible, intangible assets and investments under equity method has been recorded in the first half of 2015. A €1.2 million reversal on provisions for onerous contracts has been recognized.

Adjusted EBIT, after impairment charge increased by 12.2% to €135.8 million compared to €121.0 million in H1 2014.

NET FINANCIAL INCOME / (LOSS) (3)

In the first half of 2015, net financial income was -€13.1 million compared to -€15.6 million in the first half of 2014, mainly due to the positive impact from foreign exchange variations on some local borrowings.

EQUITY AFFILIATES (4)

In the first half of 2015, the share of net profit from equity affiliates was €29.4 million, higher compared to the same period last year (€24.7 million), largely attributed to the negative impact of the impairment of Ukraine, last year.

NET INCOME GROUP SHARE (5)

In the first half of 2015, net income Group share before impairment charge increased by 6.4% to €78.6 million compared to €73.9 million in H1 2014.

Taking into account the impact from the impairment charge, net income Group share increased by 13.2% to €79.5 million compared to €70.2 million in H1 2014.

ADJUSTED CAPITAL EXPENDITURE

In the first half of 2015, adjusted net capex (acquisition of property, plant and equipment and intangible assets, net of disposals of assets) was at €107.9 million compared to €71.0 million during the same period last year, with both higher renewal (Paris bus shelters contract) and growth capex.

ADJUSTED FREE CASH FLOW (6)

In the first half of 2015, adjusted free cash flow was €109.2 million compared to €101.3 million in the same period last year. This increase is due to a higher operating margin and favourable movements from change in working capital, offset by higher capex.

NET DEBT (7)

Net debt as of 30th June 2015 amounted to €62.7 million compared to a net debt position of €113.3 million as of 30th June 2014, representing 0.1 times the last 12 months operating margin.

A debt of €500 million (not included in the net debt as of 30th June, 2015) was recorded in liabilities in the consolidated statement of financial position relating to the commitment to purchase our own shares as part of the simplified public tender offer ("offre publique d'achat simplifiée", OPAS). Taking into account the impact of the OPAS, net debt as of 30th June, 2015 would have been €562.7 million.

DIVIDEND

The dividend of €0.50 per share for the 2014 financial year, approved at the Annual General Meeting of Shareholders on 13th May 2015, was paid on 20th May 2015, for a total amount of €112.0 million.

RESULT OF THE OPAS

On the back of strong operating and financial performance, resulting in a net positive cash position of €83.5 million for the Group as at 31st December, 2014, the Executive Board of Directors has decided to optimize the Group's financial structure via a simplified public tender offer ("offre publique d'achat simplifiée", OPAS) to buy back 12,500,000 of its own shares at a price per share of €40, which ended on 9 th July 2015.

194,419,422 shares, accounting for 87% of the share capital, were tendered to the offer. Out of these, 61% of the free float were tendered to the offer. The success of the OPAS is reflected in the total number of shares tendered, which exceeds the 12,500,000 shares subject to the offer. As a consequence and in accordance with article 233-5 of the general regulations of the AMF, the buyback allocation was determined through a pro rata reduction on an equal basis between all shareholders based on the number of shares tendered to the offer. In line with the maximum size announced for the offer, JCDecaux bought back a total of 12,500,000 shares, for a consideration of €500 million.

The Decaux Family (including JCDecaux Holding SAS) tendered all its shares to the share buyback. The Family now holds 65.0% of JCDecaux SA.

ADJUSTED DATA

Under IFRS 11, applicable from 1st January, 2014, companies under joint control are accounted for using the equity method.

However in order to reflect the business reality of the Group, operating data of the companies under joint control will continue to be proportionately integrated in the operating management reports used to monitor the activity, allocate resources and measure performance.

Consequently, pursuant to IFRS 8, Segment Reporting presented in the financial statements shall comply with the Group's internal information, and the Group's external financial communication will therefore rely on this operating financial information. Financial information and comments will therefore be based on "adjusted" data, consistent with historical data, which will be reconciled with IFRS financial statements. As regards the P&L, it concerns all aggregates down to the EBIT. As regards the cash flow statement, it concerns all aggregates down to the free cash flow.

In the first half of 2015, the impact of IFRS 11 on our adjusted aggregates was:

  • -€172.0 million on adjusted revenues (-€153.7 million in H1 2014) leaving IFRS revenues at €1,287.7 million (€1,151.1 million in H1 2014).
  • -€45.4 million on adjusted operating margin (-€39.2 million in H1 2014) leaving IFRS operating margin at €240.3 million (€217.6 million in H1 2014).
  • -€32.9 million on adjusted EBIT before impairment charge (-€29.1 million in H1 2014) leaving IFRS EBIT before impairment charge at €101.7 million (€95.3 million in H1 2014).
  • -€32.9 million on adjusted EBIT after impairment charge (-€24.6 million in H1 2014) leaving IFRS EBIT after impairment charge at €102.9 million (€96.4 million in H1 2014).
  • +€19.4 million on adjusted capital expenditure (€8.3 million in H1 2014) leaving IFRS capital expenditure at €88.5 million (€62.7 million in H1 2014).
  • -€13.7 million on adjusted free cash flow (-€16.0 million in H1 2014) leaving IFRS free cash flow at €95.5 million (€85.3 million in H1 2014).

The full reconciliation between IFRS figures and adjusted figures is provided on page 8 of this release.

NOTES

  • (1) Operating Margin: Revenues less Direct Operating Expenses (excluding Maintenance spare parts) less SG&A expenses. H1 2014 figures are proforma of the retrospective impact of IFRIC 21 "Levies". The impact on the previously published H1 2014 adjusted operating margin was -€6.7 million.
  • (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 2014 figures are proforma of the retrospective impact of IFRIC 21 "Levies". The impact on the previously published H1 2014 adjusted EBIT was -€6.7 million.
  • (3) Net financial income / (loss): Excluding the impact of actualization of debt on commitments to purchase minority interests (+€3.6 million and -€2.1 million in H1 2015 and H1 2014 respectively).
  • (4) Equity affiliates: H1 2014 figures is proforma of the retrospective impact of IFRIC 21 "Levies". The impact on previously published H1 2014 figures is -€0.6 million.
  • (5) Net income Group share: H1 2014 figures is proforma of the retrospective impact of IFRIC 21 "Levies". The impact on previously published H1 2014 figures is -€5.2 million.
  • (6) Free cash flow: Net cash flow from operating activities less capital investments (property, plant and equipment and intangible assets) net of disposals.
  • (7) Net debt: Debt net of managed cash 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 hedging financial derivatives. Net debt is presented excluding the €500 million of own shares repurchased on 17th July, 2015 as part of the simplified public tender offer ("offre publique d'achat simplifiée", OPAS).

Next information:

Q3 2015 revenues: 5 th November, 2015 (after market)

Key Figures for JCDecaux

  • 2014 revenues: €2,813m, H1 2015 revenues: €1,460m
  • JCDecaux is listed on the Eurolist of Euronext Paris and is part of the Euronext 100 index
  • N°1 worldwide in street furniture (491,950 advertising panels)
  • N°1 worldwide in transport advertising with 140 airports and 279 contracts in metros, buses, trains and tramways (379,060 advertising panels)
  • N°1 in Europe for billboards (180,590 advertising panels)
  • N°1 in outdoor advertising in the Asia-Pacific region (215,350 advertising panels)
  • N°1 in outdoor advertising in Latin America (51,150 advertising panels)
  • N°1 in outdoor advertising in Africa (36,000 advertising panels)
  • N°1 worldwide for self-service bicycle hire: pioneer in eco-friendly mobility
  • 1,078,370 advertising panels in more than 70 countries
  • Present in 3,700 cities with more than 10,000 inhabitants
  • 12,300 employees

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.

Communications Department: Agathe Albertini +33 (0) 1 30 79 34 99 – [email protected] Investor Relations: Arnaud Courtial

+33 (0) 1 30 79 79 93 – [email protected]

RECONCILIATION BETWEEN ADJUSTED FIGURES AND IFRS FIGURES

Profit & Loss H1 2015
€m Adjusted Impact of
companies
under joint
control
IFRS Adjusted Impact of
companies
under joint
control
IFRS
Revenues 1,459.7 (172.0) 1,287.7 1,304.8 (153.7) 1,151.1
Operating costs (1,174.0) 126.6 1,047.4 (1,048.0) 114.5 (933.5)
Operating margin 285.7 (45.4) 240.3 256.8 (39.2) 217.6
Spare parts (20.1) 0.5 (19.6) (18.7) 0.6 (18.1)
Amortization and provisions (net) (124.0) 11.8 (112.2) (120.6) 9.4 (111.2)
Other operating income/ expenses (7.0) 0.2 (6.8) 6.9 0.1 7.0
EBIT before impairment charge 134.6 (32.9) 101.7 124.4 (29.1) 95.3
Impairment charge (2) 1.2 - 1.2 (3.4) 4.5 1.1
EBIT after impairment charge 135.8 (32.9) 102.9 121.0 (24.6) 96.4

(1) H1 2014 figures are proforma of the retrospective impact of IFRIC 21 "Levies". The impact on the previously published H1 2014 figures was -€6.7m on Adjusted operating margin and -€5.8m on IFRS operating margin.

(2) Including impairment charge on net assets of companies under joint control.

Cash-flow Statement H1 2014 (1)
H1 2015
€m Adjusted Impact of
companies
under joint
control
IFRS Adjusted Impact of
companies
under joint
control
IFRS
Funds from operations net of
maintenance costs
210.0 1.5 211.5 183.1 (5.1) 178.0
Change in working capital
requirement
7.1 (34.6) (27.5) (10.8) (19.2) (30.0)
Net cash flow from operating
activities
217.1 (33.1) 184.0 172.3 (24.3) 148.0
Capital expenditure (107.9) 19.4 (88.5) (71.0) 8.3 (62.7)
Free cash flow 109.2 (13.7) 95.5 101.3 (16.0) 85.3

(1) H1 2014 figures are proforma of the retrospective impact of IFRIC 21 "Levies". The impact on the previously published H1 2014 figures was -€6.7m on Funds from operations net of maintenance costs, +€6.7m on Change in working capital requirement on adjusted figures (vs. respectively -€5.8m and +€5.8m on IFRS figures), no impact on Cash flow from operating activities.

CONSOLIDATED FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION

Assets

In million euros 30/06/2015 31/12/2014
Restated (1)
Goodwill 1,258.6 1,170.8
Other intangible assets 312.3 299.6
Property, plant and equipment 1,057.9 1,022.6
Investments under equity method 490.9 475.2
Financial investments 0.8 0.8
Other financial assets 102.0 75.4
Deferred tax assets 38.1 31.1
Income tax receivable 1.3 1.3
Other receivables 33.8 31.7
NON-CURRENT ASSETS 3,295.7 3,108.5
Other financial assets 11.7 5.5
Inventories 107.2 92.5
Financial instruments 6.5 2.0
Trade and other receivables 926.2 787.2
Income tax receivable 28.2 6.2
Financial assets for treasury management purposes 42.0 41.8
Cash and cash equivalents 526.2 794.8
CURRENT ASSETS 1,648.0 1,730.0
TOTAL ASSETS 4,943.7 4,838.5

(1) Restated from the retrospective application of IFRIC 21 "Levies".

Liabilities and Equity

In million euros 30/06/2015 31/12/2014
Restated (1)
Share capital 3.4 3.4
Additional paid-in capital 1,082.5 1,064.7
Treasury shares (502.4) 0.0
Consolidated reserves 1,496.9 1,414.6
Consolidated net income (Group share) 79.5 194.3
Other components of equity 78.5 (14.0)
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
COMPANY
2,238.4 2,663.0
Non-controlling interests (4.6) (23.6)
TOTAL EQUITY 2,233.8 2,639.4
Provisions 272.5 265.8
Deferred tax liabilities 106.3 82.0
Financial debt 528.8 544.8
Debt on commitments to purchase non-controlling interests 93.6 92.0
Other payables 11.6 14.8
NON-CURRENT LIABILITIES 1,012.8 999.4
Provisions 34.4 37.1
Financial debt 91.3 193.1
Debt on purchase of treasury shares 500.0 0.0
Debt on commitments to purchase non-controlling interests 21.2 26.4
Financial instruments 1.8 5.6
Trade and other payables 1,010.9 890.6
Income tax payable 22.0 35.3
Bank overdrafts 15.5 11.6
CURRENT LIABILITIES 1,697.1 1,199.7
TOTAL LIABILITIES 2,709.9 2,199.1
TOTAL EQUITY AND LIABILITIES 4,943.7 4,838.5

(1) Restated from the retrospective application of IFRIC 21 "Levies".

STATEMENT OF COMPREHENSIVE INCOME

INCOME STATEMENT

1
st half of 2015
1
st half of 2014
In million euros Restated (1)
REVENUE 1,287.7 1,151.1
Direct operating expenses (831.1) (737.7)
Selling, general and administrative expenses (216.3) (195.8)
OPERATING MARGIN 240.3 217.6
Depreciation, amortisation and provisions (net) (111.0) (110.1)
Impairment of goodwill 0.0 0.0
Maintenance spare parts (19.6) (18.1)
Other operating income 1.9 10.3
Other operating expenses (8.7) (3.3)
EBIT 102.9 96.4
Financial income 5.9 4.9
Financial expenses (15.4) (22.6)
NET FINANCIAL INCOME (LOSS) (2) (9.5) (17.7)
Income tax (30.6) (27.9)
Share of net profit of companies under equity method 29.4 24.7
PROFIT FROM CONTINUING OPERATIONS 92.2 75.5
Gain or loss on discontinued operations 0.0 0.0
CONSOLIDATED NET INCOME 92.2 75.5
- Including non-controlling interests 12.7 5.3
CONSOLIDATED NET INCOME (GROUP SHARE) 79.5 70.2
Earnings per share (in euros) 0.354 0.314
Diluted earnings per share (in euros) 0.354 0.312
Weighted average number of shares 224,353,599 223,808,614
Weighted average number of shares (diluted) 224,789,653 225,109,717

(1) Restated from the retrospective application of IFRIC 21 "Levies".

(2) Excluding the impact of put, the net financial income is €(13.1) million for the first half of 2015, compared to €(15.6) million for the first half of 2014.

STATEMENT OF OTHER COMPREHENSIVE INCOME

1
st half of
1
st half of
In million euros 2015 2014
Restated (1)
CONSOLIDATED NET INCOME 92.2 75.5
Translation reserve adjustments on foreign operations (2) 75.7 16.1
Translation reserve adjustments on net foreign investments (0.5) 0.3
Cash flow hedges (0.9) 0.3
Tax on the other comprehensive income subsequently released to net income (3) 0.2 (0.1)
Share of other comprehensive income of companies under equity method (after
tax) 21.9 (5.5)
Other comprehensive income subsequently released to net income 96.4 11.1
Change in actuarial gains and losses on post-employment benefit plans and assets
ceiling 0.0 (1.7)
Tax on the other comprehensive income not subsequently released to net income (0.1) 0.5
Share of other comprehensive income of companies under equity method (after
tax) (2.2) 0.9
Other comprehensive income not subsequently released to net income (2.3) (0.3)
Total other comprehensive income 94.1 10.8
TOTAL COMPREHENSIVE INCOME 186.3 86.3
- Including non-controlling interests 14.3 5.3
TOTAL COMPREHENSIVE INCOME - GROUP SHARE 172.0 81.0

(1) Restated from the retrospective application of IFRIC 21 "Levies".

(2) For the first half of 2015, translation reserve adjustments on foreign transactions were mainly related to changes in exchange rates, of which €23.8 million in the United Kingdom, €21.2 million in Hong Kong, €4.9 million in United Arab Emirates, €4.2 million in the United States and €(3.3) million in Brazil.

For the first half of 2014, translation reserve adjustments on foreign transactions were mainly related to changes in exchange rates, of which €9.2 million in the United Kingdom, €3.5 million in Australia and €3.4 million in Brazil.

(3) For the first half of 2015 and the first half of 2014, tax on the other comprehensive income subsequently released to net income was due to translation reserve adjustments on net foreign investments.

STATEMENT OF CHANGES IN EQUITY AS OF 30 JUNE 2014

Equity attributable to the owners of the parent company
Addition
al
Retaine
d
Non
controllin
Share paid-in earning g
Capital capital s Other components of equity Total interests Total
Actuarial
gains and
Total
Cash Available Translation Reva losses/ other
flow for-sale reserve luation assets compo
In million euros hedges securities adjustments reserves ceiling Other nents
Equity as of 1 January
2014 restated (1)
3.4 1,052.3 1,522.1 (0.3) (0.1) (25.0) 0.9 (33.3) 0.8 (57.0) 2,520.8 (38.8) 2,482.0
Capital increase (2) 0.0 7.6 0.0 0.0 7.6 0.5 8.1
Distribution of dividends (107.3) 0.0 (107.3) (6.6) (113.9)
Share-based payments 1.7 0.0 1.7 1.7
Debt on commitments
to purchase
non-controlling interests
(3) 0.0 0.0 0.0
Change in consolidation
scope (4) (0.4) 0.0 (0.4) 4.8 4.4
Consolidated net income 70.2 0.0 70.2 5.3 75.5
Other comprehensive
income 0.3 10.8 (0.3) 10.8 10.8 0.0 10.8
Total comprehensive
income 0.0 0.0 70.2 0.3 0.0 10.8 0.0 (0.3) 0.0 10.8 81.0 5.3 86.3
Other 0.1 0.0 0.1 0.1
Equity as of 30 June
2014 restated (1)
3.4 1,061.6 1,484.7 0.0 (0.1) (14.2) 0.9 (33.6) 0.8 (46.2) 2,503.5 (34.8) 2,468.7

(1) Restated from the retrospective application of IFRIC 21 "Levies".

(2) Increase in JCDecaux SA's additional paid-in capital related to the exercise of stock options and share of non-controlling interests in capital increase of controlled entities. (3) Discounting impacts were recorded in the income statement in "Consolidated net income" under the line item "Non-controlling interests" for €(2.1) million for the first half of

2014.

(4) Changes in consolidation scope, primarily following the acquisition of 85% of Eumex group (Latin America) and the takeover of the company MCDecaux Inc. (Japan) due to the acquisition of an additional interest of 25%.

STATEMENT OF CHANGES IN EQUITY AS OF 30 JUNE 2015

Equity attributable to the owners of the parent company
Addition
al
Treas
ury
Retaine
d
Non
controllin
Share paid-in share earning g
Capital capital s s Other components of equity Total interests Total
In million euros Cash
flow
hedges
Available
for-sale
securities
Translation
reserve
adjustments
Reva
luation
reserves
Actuarial
gains and
losses/
assets
ceiling
Other Total
other
compo
nents
Equity as of 31
December 2014 restated
(1)
3.4 1,064.7 0.0 1,068.9 0.9 (0.1) 27.1 0.9 (43.6) 0.8 (14.0) 2,663.0 (23.6) 2,639.4
Capital increase (2) 0.0 16.3 (0.3) 0.0 16.0 0.6 16.6
Treasury shares
(502.4
Purchase ) 0.0 (502.4) (502.4)
Cancellation 0.0 0.0 0.0
Distribution of dividends (112.0) 0.0 (112.0) (8.3) (120.3)
Share-based payments 1.5 0.0 1.5 1.5
Debt on commitments
to purchase
non-controlling interests
(3)
Change in consolidation 0.0 0.0 0.0
scope (4) 0.1 0.0 0.1 12.4 12.5
Consolidated net income 79.5 0.0 79.5 12.7 92.2
Other comprehensive
income (0.9) 95.7 (2.3) 92.5 92.5 1.6 94.1
Total comprehensive
income
Other
0.0 0.0 0.0 79.5
0.2
(0.9) 0.0 95.7 0.0 (2.3) 0.0 92.5
0.0
172.0
0.2
14.3 186.3
0.2
Equity as of 30 June
2015
3.4 1,082.5 (502.4
)
1,576.4 0.0 (0.1) 122.8 0.9 (45.9) 0.8 78.5 2,238.4 (4.6) 2,233.8

(1) Restated from the retrospective application of IFRIC 21 "Levies".

(2) Increase in JCDecaux SA's additional paid-in capital related to the exercise of stock options and the delivery of bonus shares and share of non-controlling interests in capital increase of controlled entities.

(3) Discounting impacts were recorded in the income statement in "Consolidated net income" under the line item "Non-controlling interests" for €3.6 million for the first half of 2015. (4) Changes in consolidation scope, primarily following the acquisition of 70% of Continental Outdoor Media group.

STATEMENT OF CASH FLOWS

1
st half
1
st half of
of 2015 2014
In million euros Restated
(1)
Net income before tax 122.8 103.4
Share of net profit of companies under equity method (29.4) (24.7)
Dividends received from companies under equity method 51.8 31.5
Expenses related to share-based payments 1.5 1.7
Depreciation, amortisation and provisions (net) 110.3 108.6
Capital gains and losses & net income (loss) on changes in scope 0.1 (5.5)
Net discounting expenses (1.0) 5.5
Net interest expense 5.5 6.3
Financial derivatives, translation adjustments & other 13.0 3.7
Change in working capital (27.5) (30.0)
Change in inventories (12.4) (12.7)
Change in trade and other receivables (31.7) (40.0)
Change in trade and other payables 16.6 22.7
CASH PROVIDED BY OPERATING ACTIVITIES 247.1 200.5
Interest paid (15.9) (15.9)
Interest received 3.8 4.2
Income taxes paid (51.0) (40.8)
NET CASH PROVIDED BY OPERATING ACTIVITIES 184.0 148.0
Cash payments on acquisitions of intangible assets and property, plant and equipment (94.0) (64.9)
Cash payments on acquisitions of financial assets (long-term investments) net of cash acquired (2) (92.3) (50.9)
Acquisitions of other financial assets (23.2) (20.1)
Total investments (209.5) (135.9)
Cash receipts on proceeds on disposal of intangible assets and property, plant and equipment 5.5 2.2
Cash receipts on proceeds on disposal of financial assets (long-term investments) net of cash sold 1.5 0.0
Proceeds on disposal of other financial assets 2.0 5.1
Total asset disposals 9.0 7.3
NET CASH USED IN INVESTING ACTIVITIES (200.5) (128.6)
Dividends paid (120.3) (113.9)
Purchase of treasury shares (2.4) -
Cash payments on acquisitions of non-controlling interests (0.2) (0.7)
Repayment of long-term debt (170.3) (18.8)
Repayment of debt (finance lease) (4.0) (2.5)
Cash outflow from financing activities (297.2) (135.9)
Cash receipts on proceeds on disposal of interests without loss of control 0.0 0.0
Capital increase 16.6 8.1
Increase in long-term borrowings 10.2 13.5
Cash inflow from financing activities 26.8 21.6
NET CASH USED IN FINANCING ACTIVITIES (270.4) (114.3)
CHANGE IN NET CASH POSITION (286.9) (94.9)
Net cash position beginning of period 783.2 672.1
Effect of exchange rate fluctuations and other movements 14.4 (0.6)
Net cash position end of period (3) 510.7 576.6

(1) Restated from the retrospective application of IFRIC 21 "Levies".

(2) Including €10.8 million of net cash acquired for the 1st half of 2015, compared to €1.8 million of net cash acquired for the 1st half of 2014.

(3) Including €526.2 million in cash and cash equivalents and €15.5 million in bank overdrafts as of 30 June 2015, compared to €591.7 million and €15.1 million, respectively, as of 30 June 2014.

Talk to a Data Expert

Have a question? We'll get back to you promptly.