Earnings Release • Mar 17, 2022
Earnings Release
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Business report FY 2021
March 17 th , 2022
| Annual business review – FY 2021 |
3 |
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| Annual financial release – FY 20213 |
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| Business highlights of 2021 11 |
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| Perspectives 13 |
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| Related parties14 |
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| Risk factors15 |
| Annual consolidated financial statements – FY 2021 21 |
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|---|---|
| Annual consolidated financial statements 21 |
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| Notes to the annual consolidated financial statements26 |
Paris, March 10th , 2022 – JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today its results for the year ended December 31st , 2021. JCDecaux Supervisory Board, which met on March 9 th , 2022, approved the audited financial statements for fiscal year 2021. A report with an unqualified opinion is being issued by the Statutory Auditors.
"Our 2021 group revenue grew by +18.7%, +18.5% on an organic basis with a very strong digital revenue growth, to reach €2,744.6 million despite national and local mobility restrictions including semi-lockdowns in some European and Asia-Pacific countries.
Digital Out Of Home (DOOH) grew by +33.2% in full-year 2021 to reach a record 26.9% of Group revenue for 2021 as we continued to accelerate our digital transformation and maintained our focus on the roll-out of digital screens and on the development of our automated data-driven planning and trading solutions. Programmatic advertising gained good momentum via the VIOOH platform which is now trading in 15 countries, connected to multiple DSPs (Demand Side Platforms).
While our client portfolio is diversified with the top 10 clients representing c.13% of our revenue, internet companies increased their spend by 69.4% representing now 7.3% of total revenue and our biggest category is now Fashion/Personal care and Luxury Goods with 15.0% of total revenue ahead of retail at 14.6%.
With revenue growing by €432.8m in 2021, our adjusted operating margin has reached €422.3m improving by €280.6m reflecting a strong operating leverage thanks to a revenue mix geared toward the higher margin Street Furniture business segment, our ongoing strict cost control and some rent relieves in line with the revenue shortfall linked to Covid-19 restrictions. Although improving by €590m year-on-year, our net result group share is still slightly negative at -€14.5m. Our tight management over working capital requirements and selective capex reduction as well as the decision not to distribute dividends allowed us to generate an improved positive free-cash-flow at €211.5m in 2021 and to reduce our net debt at around €925m at the end of the period (vs €1,086m at the end of 2020).
We continued to strengthen our ESG leading initiatives and commitments such as our global carbon neutrality contribution with France as a first step from 2021 onwards. The acknowledgement of our sustainability strategy by extra-financial rating agencies such as our A Leadership ranking in the Carbon Disclosure Project (CDP) and our new Gold Medal status by EcoVadis demonstrates the excellence of our environmental, social and governance practices which have been in our DNA since the company was created, as well as our ongoing commitment to ensuring transparency towards our stakeholders.
In order to continue to optimize our financial flexibility, we will propose at the Annual General Meeting which will take place on May 11th , 2022, not to pay any dividend in 2022.
As far as Q1 2022 is concerned, we expect an organic revenue growth of above +40% driven by Europe, UK, US, Rest of the World while Asia-Pacific revenue growth is lower due to ongoing mobility restrictions. Our digital revenue growth continues to be very strong while analogue growth remains robust.
I would like once again to sincerely thank our teams across the world for their hard work, their strong commitment, their resilience, their agility, and their innovation spirit.
The Executive Board decided to immediately put in place financial and other measures to support the Ukrainian people as well as our local staff of the BigBoard JV suffering from the disastrous humanitarian consequences caused by the war against their country. JCDecaux has no exposure in Russia since the sale of its 25% stake in Russ Outdoor in 2020. Revenue in Ukraine in Q4 2021 accounted for c. 0.1% of total revenue.
As the most digitised global OOH company with our new data-led audience targeting and programmatic solutions, our well diversified portfolio, our ability to win new contracts, the strength of our balance sheet and the high quality of our teams across the world, we believe we are well positioned to benefit from the rebound. We are more than ever confident in the power of our media in an advertising landscape increasingly fragmented and more and more digital and in the role it will play to support the economic recovery as well as to drive positive changes."
Following the adoptions of IFRS 11 from January 1 st , 2014 and IFRS 16 from January 1 st , 2019, and in compliance with the AMF's instructions, the operating data presented below are adjusted:
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Please refer to the paragraph "Adjusted data" on page 5 of this release for the definition of adjusted data and reconciliation with IFRS.
The values shown in the tables are generally expressed in millions of euros. The sum of the rounded amounts or variations calculations may differ, albeit to an insignificant extent, from the reported values.
As reported on January 27th , 2022, adjusted revenue increased by +18.7% to €2,744.6 million compared to €2,311.8 million in 2020, with a strong sequential revenue rebound when restrictions are lifted. Excluding the positive impact from foreign exchange variations and the negative impact from changes in perimeter, adjusted organic revenue increased by +18.5%. Adjusted organic advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture and advertising displays, increased by +18.9% in 2021.
By activity, Street Furniture rebounded the most followed by Billboard and Transport. Pedestrian and car traffic audiences recovered rapidly when lockdowns were lifted while for Transport international air traffic remained low throughout the year due to the Covid19 pandemic. Public transport assets remained temporarily affected by local mobility restrictions.
All geographies performed strongly in 2021 compared to 2020, especially in Q4 despite Omicron and mobility restrictions in some countries. Rest of the World improved the most, from a low level in 2020 while Europe (including France and UK) was the closest to 2019 levels as Street Furniture performed well. For Transport, in China, businesses exposed to domestic audiences recovered well as revenues were close to pre-Covid levels for domestic transport advertising (including metros, buses, domestic airport terminals) and already above 2019 revenue levels for domestic airport advertising more specifically.
For 2021, adjusted operating margin reached €422.3 million vs €141.6 million in 2020, a significant increase by €280.6 million reflecting a strong operating leverage with 65% of the revenue increase going to the operating margin thanks to a tight management of operating costs.
The adjusted operating margin as a percentage of revenue was 15.4%, +930bp above prior year, reflecting a strong operating leverage.
| 2021 | 2020 | Change 21/20 | ||||
|---|---|---|---|---|---|---|
| €m | % of revenue |
€m | % of revenue |
Change (€m) |
Margin rate (bp) |
|
| Street Furniture | 323.4 | 22.5% | 145.4 | 12.9% | +178.1 | +960bp |
| Transport | 58.2 | 6.6% | 2.6 | 0.3% | +55.6 | +630bp |
| Billboard | 40.7 | 9.5% | -6.3 | -1.7% | +47.0 | +1,120bp |
| Total | 422.3 | 15.4% | 141.6 | 6.1% | +280.6 | +930bp |
Street Furniture: In 2021, adjusted operating margin increased by €178.1 million to €323.4 million. As a percentage of revenue, the adjusted operating margin was 22.5%, +960bp above prior year.
Transport: In 2021, adjusted operating margin improved by €55.6 million to €58.2m. As a percentage of revenue, the adjusted operating margin was 6.6%, +630bp above prior year.
Billboard: In 2021, adjusted operating margin improved by €47.0 million. As a percentage of revenue, the adjusted operating margin was 9.5%, +1,120bp above prior year.
In 2021, adjusted EBIT before impairment came back to positive territory at €16.3 million compared to - €352.9 million in 2020. As a percentage of revenue, this represented a 1,590bp increase to 0.6%, from -15.3% in 2020. The positive variation of €369.2 million is mainly due to the increase of the operating margin and non-recurring other operating income / expenses in 2020 (such as a net loss on sale of our minority stake in Russ Outdoor in Russia and restructuring costs to adjust our cost base) while net amortisation and provisions were relatively stable.
The impairment on property, plant and equipment and intangible assets is limited to -€7.6 million in 2021, no impairment charge on goodwill was recorded in 2021.
In 2020, an overall -€222.3 million impairment charge was recognised mainly due to the consequences of the Covid-19 situation: -€36.7 million impairment charge on intangible assets and PP&E, a -€9.4 million net provision for onerous contracts and -€0.2 million provision on net assets from companies under joint control and -€176.0m impairment charge on goodwill, of which -€128.0m related the Pacific region and -€48.0m related to the Billboard business in the Rest of the World (-€10.0m impairment charge on goodwill was recorded in 2019).
Adjusted EBIT, after impairment charge, has improved by €583.9 million from -€575.2 million in 2020 to €8.7 million in 2021.
In 2021, interest expenses on IFRS 16 leases were -€82.2 million compared to -€118.1 million in 2020, a favourable variation of €35.9 million mainly coming from the mechanical reduction of the IFRS 16 lease liability related to the contract life progression.
In 2021, excluding IFRS 16, other net financial income / (loss) was -€42.8 million compared to -€40.6 million in 2020, a variation of -€2.2 million mainly corresponding to the financial interest expenses relating to the €1 billion bond placed in April 2020 partially compensated by some positive FX variation.
In 2021, the share of net profit from equity affiliates turned positive to €48.6 million, increasing significantly compared to 2020 (-€1.3 million) reflecting the improvement in their operational performance.
In 2021, net income Group share before impairment charge increased by +€384.6 million to -€8.7 million compared to -€393.3 million in 2020.
Taking into account the impact from the impairment charge, net income Group share increased by €590.0 million to -€14.5 million compared to -€604.6 million in 2020 due to the impairment charges recognized in 2020 as reminded above.
In 2021, adjusted net capex (acquisition of property, plant and equipment and intangible assets, net of disposals of assets) was reduced by -14.8% from €185.0 million in 2020 to €157.5 million from a base already significantly reduced in 2020 compared to 2019. A selective reduction nonetheless as growth capex including capex to pursue digitisation in premium locations and to roll-out our programmatic trading solutions continued to increase in percentage of total capex.
In 2021, adjusted free cash flow was €211.5 million, an improvement by €49.6 million vs. 2020, the positive variation from the funds from operations and capex reduction was partially offset by the negative impact from the variation in the change in working capital requirements mainly related to the increase in the revenue in Q4 2021.
Funds from operations net of maintenance costs reached €237.6 million improving by +€293.8 million compared to 2020 due to the increase in the operating margin, the decrease in income tax and restructuring costs paid over the period, partly mitigated by the interests paid due to the increase in gross debt resulting from the bonds issued in 2020.
Changes in our working capital had nonetheless a positive impact of €131.4 million due to a tight management over cash collection and payments but less positive than in 2020 which benefited from the significant decline in revenue.
No dividend was paid in 2021 in the context of the Covid-19 pandemic, in order to strengthen Group's liquidity, balance sheet and financial flexibility.
In order to continue to optimize our financial flexibility, we will propose at the Annual General Meeting which will take place on May 11th, 2022, not to pay any dividend in 2022.
Net debt as of December 31st , 2021 amounted to €924.5 million compared to €1,086.3 million as of December 31st , 2020 thanks to the positive free cash flow driven by the increase in revenue and by measures taken by the Group to preserve cash.
In January 2022, we extended our debt maturity schedule and secured our financing profile with the issuance of a €500 million bond with a maturity in 2030 and a coupon at 1.625%. Subscribed more than 3 times and placed with investors of high quality, the success of this new issuance demonstrates both the quality of JCDecaux's signature and the investors' confidence in the rebound capacity and in the growth potential of the Group.
Rights-of-use, IFRS 16 as of December 31st , 2021 amounted to €2,964.8 million compared to €3,416.5 million as of December 31st , 2020, a decrease related to the amortisation of rights-of-use, contracts renegotiations partially offset by new contracts, foreign exchange rate impacts, contracts extended and contracts renewed.
IFRS 16 lease liabilities decreased by €490.0 million from €4,145.8 million as of December 31st , 2020 to €3,655.8 million as of December 31st , 2021, the decrease in lease liabilities corresponding to rents paid and renegotiated partially offset by new contracts, foreign exchange rate impacts, contracts extended and contracts renewed.
Under IFRS 11, applicable from January 1 st , 2014, companies under joint control are accounted for using the equity method.
Under IFRS 16, applicable from January 1 st , 2019, a lease liability for contractual fixed rental payments is recognised on the balance sheet, against a right-of-use asset to be depreciated over the lease term. As regards P&L, the fixed rent expense is replaced by the depreciation of the right-of-use in EBIT, below the operating margin, and a lease interest expense on the lease liability in financial result, below EBIT. IFRS 16 has no impact on cash payments but payment of debt (principal) is booked in funds from financing activities.
However, in order to reflect the business reality of the Group and the readability of our performance, our operating management reports used to monitor the activity, allocate resources and measure performance continue:
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.
Consequently, pursuant to IFRS 8, Segment Reporting presented in the financial statements complies with the Group's internal information, and the Group's external financial communication therefore relies on this operating financial information. Financial information and comments are therefore based on "adjusted" data, consistent with historical data, which is reconciled with IFRS financial statements.
In 2021, the impacts of IFRS 11 and IFRS 16 on our adjusted aggregates are:
The full reconciliation between adjusted figures and IFRS figures is provided on page 8 of this release.
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 revenue of the current fiscal year at the average exchange rates of the previous year and taking into account the perimeter variations prorata temporis, but including revenue variations from the gains of new contracts and the losses of contracts previously held in our portfolio.
| €m | Q1 | Q2 | Q3 | Q4 | FY | |
|---|---|---|---|---|---|---|
| 2020 adjusted revenue | (a) | 723.6 | 351.9 | 541.2 | 695.1 | 2,311.8 |
| 2021 IFRS revenue | (b) | 416.7 | 577.7 | 647.1 | 881.0 | 2,522.5 |
| IFRS 11 impacts | (c) | 37.6 | 50.3 | 59.4 | 74.8 | 222.1 |
| 2021 adjusted revenue | (d) = (b) + (c) | 454.3 | 628.1 | 706.5 | 955.8 | 2,744.6 |
| Currency impacts | (e) | 10.6 | 4.8 | -6.6 | -15.3 | -6.5 |
| 2021 adjusted revenue at 2020 exchange rates |
(f) = (d) + (e) | 464.9 | 632.8 | 699.9 | 940.4 | 2,738.0 |
| Change in scope | (g) | 8.0 | 1.0 | -3.8 | -3.8 | 1.4 |
| 2021 adjusted organic revenue |
(h) = (f) + (g) | 472.9 | 633.9 | 696.1 | 936.6 | 2,739.4 |
| Organic growth | (i) = (h) / (a) - 1 |
-34.6% | +80.2% | +28.6% | +34.7% | +18.5% |
| €m | Impact of currency as of December 31st , 2021 |
|---|---|
| USD | 5.7 |
| RMB | -10.2 |
| GBP | -8.6 |
| AUD | -8.2 |
| Other | 14.8 |
| Total | -6.5 |
| Average exchange rate | FY 2021 | FY 2020 |
|---|---|---|
| USD | 0.8455 | 0.8755 |
| RMB | 0.1311 | 0.1270 |
| GBP | 1.1633 | 1.1240 |
| AUD | 0.6349 | 0.6043 |
(a) Adjusted revenue
For more information about JCDecaux, please visit jcdecaux.com. Join us on Twitter, LinkedIn, Facebook, Instagram and YouTube.
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 forwardlooking statements.
+33 (0) 1 30 79 35 68 – [email protected]
Investor Relations: Rémi Grisard +33 (0) 1 30 79 79 93 – [email protected]
Annual financial release – FY 2021
| Profit & Loss | 2021 | 2020 | ||||||
|---|---|---|---|---|---|---|---|---|
| €m | Adjusted | Impact of companies under joint control |
Impact of IFRS 16 from controlled entities (1) |
IFRS | Adjusted | Impact of companies under joint control |
Impact of IFRS 16 from controlled entities (1) |
IFRS |
| Revenue | 2,744.6 | (222.1) | 0.0 | 2,522.5 | 2,311.8 | (212.0) | - | 2,099.8 |
| Net operating costs | (2,322.3) | 163.3 | 800.5 | (1,358.5) | (2,170.2) | 170.5 | 978.6 | (1,021.1) |
| Operating margin | 422.3 | (58.9) | 800.5 | 1,163.9 | 141.6 | (41.5) | 978.6 | 1,078.7 |
| Maintenance spare parts | (38.4) | 1.1 | 0.0 | (37.3) | (47.1) | 1.2 | - | (46.0) |
| Amortisation and provisions (net) | (361.8) | 17.9 | (724.7) | (1,068.6) | (367.6) | 21.3 | (868.4) | (1,214.7) |
| Other operating income / expenses | (5.7) | 0.3 | 23.6 | 18.2 | (79.8) | (0.6) | 8.7 | (71.8) |
| EBIT before impairment charge | 16.3 | (39.5) | 99.5 | 76.2 | (352.9) | (19.7) | 118.9 | (253.7) |
| Net impairment charge (2) | (7.6) | 0.0 | 0.0 | (7.6) | (222.3) | 0.2 | - | (222.1) |
| EBIT after impairment charge | 8.7 | (39.5) | 99.5 | 68.6 | (575.2) | (19.5) | 118.9 | (475.8) |
(1) IFRS 16 impact on the core business contracts of controlled entities (2) Including impairment charge on net assets of companies under joint control.
| Cash-Flow Statement | 2021 | 2020 | ||||||
|---|---|---|---|---|---|---|---|---|
| €m | Adjusted | Impact of companies under joint control |
Impact of IFRS 16 from controlled entities (1) |
IFRS | Adjusted | Impact of companies under joint control |
Impact of IFRS 16 from controlled entities (1) |
IFRS |
| Funds from operations net of maintenance costs |
237.6 | (16.7) | 615.3 | 836.1 | (56.2) | 35.8 | 671.2 | 650.7 |
| Change in working capital requirement |
131.4 | 1.7 | 32.6 | 165.7 | 403.0 | (27.8) | (137.9) | 237.4 |
| Net cash flow from operating activities |
369.0 | (15.0) | 647.8 | 1,001.8 | 346.8 | 8.0 | 533.2 | 888.1 |
| Capital expenditure | (157.5) | 7.2 | 0.0 | (150.3) | (185.0) | 8.0 | - | (176.9) |
| Free cash flow | 211.5 | (7.8) | 647.8 | 851.5 | 161.9 | 16.0 | 533.2 | 711.2 |
In May, JCDecaux announced that, following a competitive tender, its subsidiary JCDecaux Belgium has won the street furniture contract for the city of Brussels (Brussels Capital metropolitan area: 1.2 million inhabitants), Belgium's capital city and seat of several European Union institutions. Effective from June 15th, the exclusive 15 year contract, which was previously held by a competitor, covers the design, installation, operation and maintenance of 335 bus shelters and 215 city information panels. Digital screens will also be installed in strategic locations across the city, providing contextualised, location-based and real-time messaging. Providing real innovation, the screens will display a mix of local city information and advertising, supporting local people in their day-to-day lives while offering cities and advertisers flexibility, responsiveness and a powerful platform for communication. In an additional benefit, the city of Brussels will be able to directly manage their own communication on the screens, using technology developed by JCDecaux.
In July, JCDecaux announced that the company has been awarded, following a competitive tender, the advertising bus shelters contract for the city of Antwerp, capital of Antwerp Province, Belgium's biggest province with 1.9 million inhabitants. Previously held by a competitor, the 10-year contract covers all nine districts in Antwerp, with its 540,000 inhabitants.
In September, JCDecaux announced that Sydney Trains has appointed the company as its main advertising partner across the concourses and platforms of train stations for a term of up to 10 years. In 2019, pre-COVID, Sydney Trains recorded 420 million journeys per year.
In September, JCDecaux announced that a consortium of investors to which it is part of has, through the special purpose vehicle ("Offeror") owned as to approximately 89% by the consortium and as to approximately 11% by Aimia Inc. (Toronto Stock Exchange: AIM), completed the acquisition of all the remaining shares of Clear Media Limited ("Clear Media") on September 27th, 2021. As a result, Clear Media is now a wholly-owned subsidiary of the Offeror and the listing of the shares of Clear Media on the Hong Kong Stock Exchange has been withdrawn.
In February, JCDecaux SA announced it has been listed in the FTSE4Good index by FTSE Russell with a 4.6/5 score, rewarding its environmental, social and corporate governance performance. Included in the FTSE4Good index since 2014, JCDecaux achieved a stronger overall performance score this year, with 4.6/5 (vs. 4.5 end-2019), much higher than the Media sector average at 2.8/5 (down compared with a year earlier). JCDecaux's lead in the index versus the sector average is very clear for each ESG rating criterion: Environment (1.9/5 for the sector vs. 5/5 for JCDecaux), Social (2.4/5 for the sector vs. 4.3/5 for JCDecaux), and Governance (3.8/5 for the sector vs. 4.7/5 for JCDecaux).
In March, JCDecaux announced it has once again been listed in the "Corporate Social Responsibility" rankings of the MSCI rating agency, obtaining the maximum AAA score. AAA-rated since 2018, JCDecaux has obtained MSCI's maximum rating with an overall score of 6.7/10, which came in well above the sector average at 4.2/10.
In March, JCDecaux announced that Albert Asséraf will become Executive Vice-President Communication and User Innovation from 12 April, enlarging his current duties. He is succeeding to Agathe Albertini, who is leaving JCDecaux to pursue her own entrepreneurial activities.
In May, JCDecaux stepped up its commitment and innovation in sustainability by announcing the creation of the first environmental, economic and social footprint calculator for campaigns. True to its pioneering vision of sustainability and societal challenges, JCDecaux has decided to create a comprehensive assessment tool. Empreinte 360 will be available from autumn 2021 in France and will provide fully transparent information to advertisers on the impact of JCDecaux campaigns. This tool will also be available for communications from local authorities on street furniture in its next development.
In September, JCDecaux announced the launch of JCDecaux Data Solutions - a portfolio of global and local datadriven solutions that enables advertisers to maximise the power and ROI of their media investment. JCDecaux Data Solutions is a combination of in-house products and solutions developed by JCDecaux's data team (50 people) and 3rd party solutions.
JCDecaux Data Solutions is due to launch first in the following markets (by geographical area): France, UK, Germany, Belgium, Netherlands, Spain, Italy, UAE, South Africa, USA, Hong Kong SAR (China), Japan, Singapore, Australia, Brazil. More markets will roll out JCDecaux Data Solutions in 2022.
In December, JCDecaux announced that it is has once again been recognised for its commitment to sustainability by the global non-profit organisation the Carbon Disclosure Project (CDP), based on its response to the 2021 Climate Change questionnaire.
Listed by the CDP since 2011, JCDecaux is one of a small number of high performing companies out of the nearly 12,000 businesses assessed. Reflecting its significant and measurable environmental actions, JCDecaux, has improved its general evaluation from A- to A and is part of CDP A-list as in 2019, showcasing companies that are leading the way in the fight against climate change. This year, JCDecaux is the only European company in the Web & Marketing Services category to be included in the CDP A-list, with a performance well above the average (C).
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Commenting on the 2021 results, Jean-François Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said:
" As far as Q1 2022 is concerned, we expect an organic revenue growth of above +40% driven by Europe, UK, US, Rest of the World while Asia-Pacific revenue growth is lower due to ongoing mobility restrictions. Our digital revenue growth continues to be very strong while analogue growth remains robust
Paragraph 10 of the "Notes to the annual consolidated financial statements" on page 83 reports on related parties.
The Group faces a number of internal and external risks that may affect its business, its financial position or whether it achieves its objectives.
In accordance with the European Regulation of 14 June 2017, the Group ranks each of the risks identified as specific and material, and then groups them into six major risk categories, which include the main risks dealt with in the Declaration of Extra-Financial Performance.
As part of its 2021 risk review, the Group has identified 106 risks, the main ones of which are detailed in the following chapters.
The most significant risks are presented in the chart below:
.
Since the start of the pandemic, JCDecaux has had to face many challenges covered by several mapping risks:
General issues:
Numerous operational challenges:
Financial challenges:
The Group has implemented specific actions related to each of these challenges.
In this category, the Group has identified risks relating to business ethics at various stages of the value chain: in relations with its customers (advertisers, agencies, etc.), with its contracting authorities (cities, local authorities, transport management companies, etc.) or with its suppliers. The risk related to non-responsible tax practices is also included in this category.
The main risk relating to this family is a risk addressed under the Statement of Non-Financial Performance: this is the risk related to business ethics and the fight against corruption.
| Facteur de risque | impact | Proba bilité d'occurrence |
Evaluation nette du risque |
|---|---|---|---|
| 2.1.2. Risques de Fraude, Corruption, Entente | |||
| RISQUELIÉ À L'ÉTHIQUE DES AFFAIRES · LUTTE ANTI · the control of the control of the control of the control of the control of the control of |
$\cdots$ |
The Group's activity is closely linked to the quality and integrity of relations with contracting authorities (cities, local authorities, transport management companies, etc.). Its reputation and its history of integrity are essential elements in its business, and helps them access various public and private contracts.
Ethical business conduct is also a key factor in preserving long-term relationships with the Group's advertisers and partners, and in maintaining its reputation for excellence in the market.
JCDecaux is also particularly vigilant in respect of business ethics when making acquisitions, particularly in countries deemed sensitive in terms of corruption.
In 2001, the Group published a Code of Ethics setting out the principles and ethical rules to be followed in conducting the Group's business.
The Code was reviewed in 2018, as part of the implementation of the Sapin II Law in France, and is communicated to all the Group's companies and employees.
The Code of Ethics, its method of distribution and the Ethics Committee that oversees its proper implementation, are presented in Universal Registration Document.
All information concerning the risk monitoring and management related to business ethics and the fight against corruption is available in the "Ensure ethical conduct and fight against corruption" of the Universal Registration Document.
Several major risks, dealt with in the Declaration of Extra-Financial Performance, fall within this category:
| Facteur de risque | Impact | Probabilité d'occurrence |
Evaluation nette du ris que |
|---|---|---|---|
| 2.1.3. Risques de Conformité aux lois et règlementations | |||
| RISQUE LIÉ AU NON RESPECT DES DROITS HUMAINS / SALARIÉS [DPIF] |
14.4 | ۰ | |
| RISQUE LIÉ AU NON RESPECT DES DROITS HUMAINS / FOURNISSEURS (D PEF) |
14.4 | 1.14 | ٠ |
| RISQUE LIÉ À LA PROTECTION DES DONNÉES À CARACTÈRE PERSONNEL ET AU NON RESPECT DE LA VIE PRIVÉE (D PEF) |
1.14 | ٠ |
The JCDecaux Group operates in more than 80 countries, and 25% of the Group's FTEs are located in countries that have not ratified all the Fundamental Conventions of the International Labour Organization. However, all employees of the Group should have their fundamental human rights respected, as stated in the JCDecaux International Charter of Fundamental Social Values.
All information concerning the monitoring and management of human rights risks is available in the chapter "Anchoring respect for fundamental social values", of the Universal Registration Document.
Suppliers are at the heart of the Group's quality processes. JCDecaux has chosen to entrust the production of its products and solutions to trusted third parties. Some of these suppliers are located in countries that have not ratified all the Fundamental Conventions of the International Labour Organisation. However, JCDecaux requires its suppliers to comply with these international standards through its Supplier Code of Conduct, whose ratification it requires.
All information concerning the monitoring and management of these risks is available in the chapter "Ensuring ethical conduct and combating corruption - Managing our supplier relations" of the Universal Registration Document.
In the digital and connected age, data are at the core of JCDecaux's business lines. In the course of its business, which among other things covers Wi-Fi access, self-service bicycles, commercial relations, events, websites, and interactive advertising processes and campaigns, JCDecaux may collect and process personal data relating to thousands of third parties. It is its responsibility to guarantee to protect the privacy and personal data of each of these parties, as well as their rights under applicable law.
In order to reduce the risk associated with non-responsible processing or data breaches, JCDecaux has set up a dedicated system:
• a specific governance structure has been put in place: formation of a "GDPR" steering committee, appointment of a Data Protection Officer (DPO) or Privacy Manager at each subsidiary located within the EU, involvement of the Legal Department in each non-EU country;
• Group policies and procedures dedicated to the personal data protection have been published and implemented across all the entities;
• training initiatives (digital learning) have been carried out to raise awareness of these issues among all personnel;
• In order to ensure the security of the Information Systems, a Chief Information Security Officer, assisted by a network of regional correspondents and Information Security Managers present in each of the Group's countries, implements JCDecaux's IT Security Policy.
All information concerning the monitoring and management of these risks is available in the chapter "Strengthening the protection of personal data", of the Universal Registration Document.
As a result of its business, the Group may be exposed to varying degrees of financial risks (especially liquidity and financing risk, interest rate risk, foreign exchange rate risk and risks related to financial management, in particular, counterparty risk). All information regarding financial risks is available in the section "Notes to the consolidated financial statements", of the Universal Registration Document. The two main risks identified in this family are as follows:
| Facteur de risque | Impact | Probabilité d'occurrence |
Evaluation nette du ris que |
|---|---|---|---|
| 2.1.4. Risques financiers | |||
| RISQUE LIÉ À LA CONJONCTURE ÉCONOMIQUE | |||
| RISQUE LIÉ À L'ACCROISSEMENT DES DISPOSITIFS REGLEMENTAIRES VISANTA REDUIRE LA PUBLICITÉ |
1.14 | 1.14 |
In the event of a worldwide recession, the advertising and communications sector is quite susceptible to business fluctuations as many advertisers may cut their advertising budgets.
The economic crisis following the Covid-19 health crisis is a perfect illustration of this risk of a sudden and unpredictable downturn in the markets.
The Group must also deal with the cyclical nature of the advertising market. Our line of business is strongly linked to changes in the GDP in the countries where the Group operates. A significant increase or downturn in the economic activity of a country may substantially impact the Group's business and revenue.
The Group's operations in geographically diverse markets minimise the impact of a possible across-the-board decline in the sector, since reactions are disparate and occur at different times on markets in the various countries where it operates. The breakdown of revenue by geographic area is presented in the Universal Registration Document.
The Group management and its Finance Department are particularly attentive to cost structures, and adopt action plans to maintain the Group's profitability.
As a rule, the outdoor advertising industry is subject to significant government regulation at both the national and local level in the majority of countries where the Group operates, relating to the type (analogue/digital display), luminosity, density, size and location of billboards and street furniture in urban and other areas.
Local regulations, however, are generally moving in the direction of reducing the total number of advertising spaces, and/or reducing their size, and local authorities are becoming stricter in applying existing law and regulations. Some advertising spaces, particularly billboards, could therefore have to be removed or relocated in certain countries in the future.
In France, where regulatory pressure is strong and long-standing (notably via the Local Advertising Regulations which regulate outdoor facilities), JCDecaux has a dedicated organisation and skills (via the Institutional Relations Department, the Regulatory Coordination Department and a Public Affairs Unit composed of specialised lawyers) to oversee the application of regulations and monitor any changes in them, in order to anticipate and better manage this risk.
In our other regions, we have not identified any similar pressure at this stage requiring the implementation of an organisation similar to the one present in France.
In addition, with regard to the environment, the main subject of legislative proposals, the Group has taken numerous measures for several years. JCDecaux is the only company in the outdoor advertising sector worldwide to have joined the RE 100 in 2019 (international coalition of companies committed to the 100% renewable energy objective). In 2021, JCDecaux was maintained at the "Leadership" level of the CDP (Carbon Disclosure Project) and is part of the prestigious List A, as in 2019. The Group is also referenced in terms of extra-financial performance in the FTSE4Good index and the MSCI ranking. For many years, the group has been mobilised in terms of environmental commitment, and in 2021 will contribute to collective carbon neutrality for its France subsidiary.
Through its activity, the Group may be confronted with several strategic risks: the ability to address changes in business models or the sudden drop in audiences are just some of them, as is the treatment of climate and environmental risks. The main risks of this family are as follows:
| Facteurs de risque | Impact | Probabilité d'occurrence |
Evaluation nette du ris que |
|---|---|---|---|
| 2.1.5. Risques stratégiques | |||
| ATTAQUE INFORMATIQUE SUR LES SYSTÈMES CLÉS DE L'ENTREPRISE. |
10.1 | *** | $\cdots$ |
| RISQUE DE PIRATAGE DI GITAL DES MOBILIERS ET DE DIFFUSION B.P.P.OKPERATION AND BROWNE (BREEL) |
1.14 | ٠ |
The Group uses complex information systems to support its commercial, industrial and management activities. The main risks are related to the integrity and maintenance of the operational capacity of its systems.
The Group's information systems are protected on several levels: data centres are secured, access to software controlled and our billboard systems audited. These protections concern in particular the computer platform used for the preparation and dissemination of digital advertising campaigns. This platform relies on a private network and is operated by the JCDecaux teams in accordance with strict end-to-end control and audit rules. It is monitored 24/7 in order to detect and deal with any operational anomalies in real time.
In addition, business recovery plans aimed at ensuring the continuity of our operations are tested several times a year. Moreover, in order to improve the security of IT systems on a continuous basis and to limit the consequences of any malfunctions, the various risks (incidents affecting data centres, failure of equipment or telecommunications systems, security breaches, human error, etc.) are regularly assessed. Based on these assessments, the resources in place are strengthened and/or new protective measures developed to clamp down on any attempted security breaches, disclosure of confidential information, data loss or corruption, loss of traceability, etc.
Operating in more than 80 countries, JCDecaux has a digital presence in 63 of these through almost 30,000 street furniture assets. Any external or internal attempt to access the digital screens of the Group's street furniture in order to advertise uncontrolled messages is a major risk, which could affect its results as well as its reputation and its ability to provide a credible digital offering to advertisers. The main risks identified include vandalism or service disruptions. The more offensive and harmful the messages disseminated, the more serious the impacts will be. With the increasing digitisation of its businesses, securing access to the Group's network, computer systems and data is a priority to protect the value of the Company.
JCDecaux has implemented a comprehensive IT policy in place for several years to protect itself against the risk of attempts to hack its digital content. Under the Corporate responsibility of the Infrastructure Department, a robust IT security policy has been put in place, with the deployment of architecture principles at Group level and applicable in all countries, as well as 24/7 monitoring and surveillance tools, notably via a SOC provided by Thales, operating procedures and guides, control systems (audits, vulnerability tests, etc.), cybersecurity monitoring work, in order to ensure the coverage of all identified risks.
All information concerning the monitoring and management of these risks is available in the chapter "Strengthening the security of our digital furniture", in the Universal Registration Document.
In this category, the Group has identified the operating risks related to these various activities (in particular when selling advertising spaces or during bill-posting, cleaning and maintenance activities). This category deals in particular with risks related to the development of human capital, the risk of harassment or the risk of losing a key employee of the Company.
The main risk relating to this family is a risk covered by the Statement of Non-Financial Performance.
| Facteur de risque | lm pact | Proba bi lité d'occurrence |
Evaluation nette du risque |
|---|---|---|---|
| 2.1.6. Risques opérationnels & RH | |||
| RISQUE LIÉ À LA SANTÉ SÉCURITÉ DES COLLABORATEURS ET SOUS TRAITANTS (DPEF) |
1.14 | $\cdots$ |
There are more than 400 different skills within JCDecaux, from the design of street furniture to the marketing of advertising space, not forgetting the upkeep and maintenance of furniture and advertising spaces. Operational and field staff, which represented approximately 51% of the Group's total workforce in 2021, are more exposed to the risks of accidents and incidents through their activities. These may include working at height, the use of electricity or the proximity to electrical equipment, road driving or work close to roads or railways, work in places where the "density" of the public is considerable (airports, railway stations, metro systems, pavements, etc.).
All information concerning the monitoring and management of these risks is available in the chapter "Promoting an exemplary Health & Safety culture" in the Universal Registration Document.
This category includes all the risks related to natural disasters or to external social, political or epidemiological factors.
The Group has operations in many countries and is therefore exposed to the effects of such events.
For instance, in 2019, the Group had to cope with the social protest in Hong Kong and a number of Latin American countries, including Chile.
The Covid-19 crisis had a significant impact on the Group in 2021, in terms of the safety of its employees, the organisation of its Supply Chain and, ultimately, in terms of commercial performance. Thus, from the start of the health crisis, the Group took a series of measures, as part of a business continuity plan, to protect its employees (especially in particularly sensitive areas) but also to ensure, as far as possible, the commitments made to its advertisers and clients.
The Group considers that this presentation covers the main significant risks.
Risks deemed insignificant but presented in accordance with Article 173 of the Energy Transition Act of 17 August 2015 are described under "Sustainable Development" in the Universal Registration Document.
| In million euros | ||
|---|---|---|
| In million euros | 31/12/2021 | 31/12/2020 | |
|---|---|---|---|
| Goodwill | § 4.1 | 1,609.3 | 1,592.8 |
| Other intangible assets | § 4.1 | 514.4 | 534.1 |
| Property, plant and equipment | § 4.2 | 1,203.9 | 1,261.3 |
| Right-of-use | § 4.3 | 2,964.8 | 3,416.5 |
| Investments under the equity method | § 4.5 | 414.4 | 392.5 |
| Other financial assets | § 4.6 | 164.9 | 161.4 |
| Financial derivatives | § 4.17 | - | - |
| Deferred tax assets | § 4.11 | 142.0 | 119.0 |
| Current tax assets | § 4.19 | 3.1 | 0.9 |
| Other receivables | § 4.7 | 11.4 | 9.8 |
| NON-CURRENT ASSETS | 7,028.1 | 7,488.3 | |
| Other financial assets | § 4.6 | 17.6 | 3.4 |
| Inventories | § 4.8 | 143.1 | 172.6 |
| Financial derivatives | § 4.17 | 0.6 | 1.7 |
| Trade and other receivables | § 4.9 | 743.0 | 697.4 |
| Current tax assets | § 4.19 | 24.2 | 37.3 |
| Treasury financial assets | § 4.10 | 46.0 | 57.6 |
| Cash and cash equivalents | § 4.10 | 1,493.8 | 1,607.8 |
| CURRENT ASSETS | 2,468.3 | 2,577.9 | |
| TOTAL ASSETS | 9,496.4 | 10,066.2 |
In million euros 31/12/2021 31/12/2020
| Share capital | 3.2 | 3.2 | |
|---|---|---|---|
| Additional paid-in capital | 608.5 | 608.5 | |
| Treasury shares | (2.8) | (1.5) | |
| Consolidated reserves | 1,169.8 | 1,777.1 | |
| Consolidated net income (Group share) | (14.5) | (604.6) | |
| Other components of equity | (144.1) | (187.5) | |
| EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY | 1,620.2 | 1,595.4 | |
| Non-controlling interests | 23.4 | 17.7 | |
| TOTAL EQUITY | § 4.12 | 1,643.6 | 1,613.0 |
| Provisions | § 4.13 | 373.6 | 368.7 |
| Deferred tax liabilities | § 4.11 | 87.1 | 98.8 |
| Financial debt | § 4.14 | 2,116.7 | 2,147.4 |
| Debt on commitments to purchase non-controlling interests | § 4.15 | 106.5 | 105.1 |
| Lease liabilities | § 4.16 | 2,647.0 | 3,088.0 |
| Other payables | 9.2 | 10.5 | |
| Income tax payable | § 4.19 | 0.9 | 0.0 |
| Financial derivatives | § 4.17 | 0.0 | 0.0 |
| NON-CURRENT LIABILITIES | 5,341.0 | 5,818.5 | |
| Provisions | § 4.13 | 88.5 | 63.1 |
| Financial debt | § 4.14 | 336.9 | 587.6 |
| Debt on commitments to purchase non-controlling interests | § 4.15 | 5.3 | 6.3 |
| Financial derivatives | § 4.17 | 4.9 | 4.4 |
| Lease liabilities | § 4.16 | 1,008.8 | 1,057.8 |
| Trade and other payables | § 4.18 | 1,039.3 | 882.1 |
| Income tax payable | § 4.19 | 21.8 | 19.2 |
| Bank overdrafts | § 4.14 | 6.4 | 14.2 |
| CURRENT LIABILITIES | 2,511.8 | 2,634.7 | |
| TOTAL LIABILITIES | 7,852.8 | 8,453.2 | |
| TOTAL EQUITY AND LIABILITIES | 9,496.4 | 10,066.2 |
| In million euros | 2021 | 2020 | |
|---|---|---|---|
| REVENUE | § 5.1 | 2,522.5 | 2,099.8 |
| Direct operating expenses | § 5.2 | (893.4) | (602.7) |
| Selling, general and administrative expenses | § 5.2 | (465.1) | (418.3) |
| OPERATING MARGIN | 1,163.9 | 1,078.7 | |
| Depreciation, amortisation and provisions (net) | § 5.2 | (1,076.3) | (1,260.8) |
| Impairment of goodwill | § 5.2 | 0.0 | (176.0) |
| Maintenance spare parts | § 5.2 | (37.3) | (46.0) |
| Other operating income | § 5.2 | 45.3 | 26.2 |
| Other operating expenses | § 5.2 | (27.1) | (98.0) |
| EBIT | 68.6 | (475.8) | |
| Interests on IFRS 16 lease liabilities | § 5.3 | (82.2) | (118.1) |
| Financial income | § 5.3 | 4.2 | 3.0 |
| Financial expenses | § 5.3 | (49.1) | (45.7) |
| Net financial income excluding IFRS 16 | § 5.3 | (44.9) | (42.6) |
| NET FINANCIAL INCOME (LOSS) | (127.1) | (160.7) | |
| Income tax | § 5.4 | 13.6 | 21.2 |
| Share of net profit of companies under the equity method | § 5.5 | 48.6 | (1.3) |
| CONSOLIDATED NET INCOME | 3.6 | (616.7) | |
| - Including non-controlling interests | 18.1 | (12.1) | |
| CONSOLIDATED NET INCOME (GROUP SHARE) | (14.5) | (604.6) | |
| Earnings per share (in euros) | (0.068) | (2.842) | |
| Diluted earnings per share (in euros) | (0.068) | (2.842) | |
| Weighted average number of shares | § 5.7 | 212,833,760 | 212,742,395 |
| Weighted average number of shares (diluted) | § 5.7 | 212,833,760 | 212,742,395 |
| In million euros | 2021 | 2020 |
|---|---|---|
| CONSOLIDATED NET INCOME | 3.6 | (616.7) |
| Translation reserve adjustments (1) | 36.7 | (78.0) |
| Cash flow hedges | 0.5 | (0.0) |
| Tax on the other comprehensive income subsequently released to net income | (3.4) | 0.4 |
| Share of other comprehensive income of companies under equity method (after tax) (2) | 14.0 | 44.8 |
| Other comprehensive income subsequently released to net income | 47.8 | (32.8) |
| Change in actuarial gains and losses on post-employment benefit plans and assets ceiling | 12.8 | (10.5) |
| Tax on the other comprehensive income not subsequently released to net income | (3.9) | 2.4 |
| Share of other comprehensive income of companies under equity method (after tax) | (12.6) | 2.3 |
| Other comprehensive income not subsequently released to net income | (3.7) | (5.8) |
| Total other comprehensive income | 44.1 | (38.6) |
| TOTAL COMPREHENSIVE INCOME | 47.7 | (655.3) |
| - Including non-controlling interests | 18.7 | (19.5) |
| TOTAL COMPREHENSIVE INCOME - GROUP SHARE | 29.0 | (635.8) |
(1) In 2021, translation reserve adjustments mainly related to changes in foreign exchange rates, of which €21.4 million in Hong Kong, €11.8 million in the United Kingdom, €9.0 million in Australia and €(7.8) million in the United States. The item also included a €(4.3) million reclassification to net income related to changes in scope and a €1.6 million reclassification to net income following the disqualification of net foreign investments (including €0.5 million in France and €1.1 million in Argentina).
In 2020, translation reserve adjustments mainly related to changes in foreign exchange rates, of which €(30.1) million in Mexico, €(15.6) million in Brazil, €(12.9) million in South Africa and €(10.8) million in the United Kingdom. The item also included a €4.1 million reclassification to net income related to changes in scope.
(2) In 2020, this includes €45.5 million in reclassification to net income of translation reserves from companies accounted for under the equity method following changes in consolidation scope.
| Equity attribuable to the owners of the parent company | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Share Capital |
Additionnal paid-in capital |
Treasury shares |
Retained earnings |
Other components of equity | Total | Non controlling interests |
Total | |||||||
| In million euros | Cash flow hedges |
Available for sale securities |
Translation reserve adjustments |
Revaluation reserves |
Actuarial gains and losses / assets ceiling |
Other | Total other components |
|||||||
| Equity as of 31 December 2019 | 3.2 | 608.5 | (0.6) | 1,776.4 | 0.9 | (0.1) | (100.2) | 0.9 | (58.2) | 0.8 | (155.9) | 2,231.5 | 36.8 | 2,268.3 |
| Capital increase (1) | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 | |||||||||
| Change in treasury shares (2) | (0.8) | (0.2) | 0.0 | (1.0) | (1.0) | |||||||||
| Purchase | (24.7) | 0.0 | (24.7) | (24.7) | ||||||||||
| Sale | 23.9 | (0.2) | 0.0 | 23.7 | 23.7 | |||||||||
| Distribution of dividends | 0.0 | 0.0 | (7.8) | (7.8) | ||||||||||
| Share-based payments | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||
| Debt on commitments to purchase non-controlling interests (3) |
0.0 | 0.0 | 0.0 | |||||||||||
| Change in consolidation scope (4) | 0.5 | -0.5 | 0.0 | (0.5) | 0.0 | 8.0 | 8.0 | |||||||
| Consolidated net income | (604.6) | 0.0 | (604.6) | (12.1) | (616.7) | |||||||||
| Other comprehensive income | 0.0 | (25.4) | (5.8) | (31.3) | (31.3) | (7.4) | (38.6) | |||||||
| Total comprehensive income | 0.0 | 0.0 | 0.0 | (604.6) | 0.0 | 0.0 | (25.4) | 0.0 | (5.8) | 0.0 | (31.3) | (635.8) | (19.5) | (655.3) |
| Other | 0.4 | 0.2 | 0.2 | 0.6 | 0.0 | 0.6 | ||||||||
| Equity as of 31 December 2020 | 3.2 | 608.5 | (1.5) | 1,172.5 | 0.8 | (0.1) | (125.9) | 0.9 | (64.0) | 0.8 | (187.5) | 1,595.4 | 17.7 | 1,613.0 |
| Capital increase (1) | 0.0 | 0.0 | 0.1 | 0.1 | ||||||||||
| Change in treasury shares (2) | (1.4) | 0.3 | 0.0 | (1.0) | (1.0) | |||||||||
| Purchase | (22.2) | 0.0 | (22.2) | (22.2) | ||||||||||
| Sale | 20.9 | 0.3 | 0.0 | 21.2 | 21.2 | |||||||||
| Distribution of dividends | 0.0 | 0.0 | 0.0 | (9.9) | (9.9) | |||||||||
| Share-based payments | 1.0 | 0.0 | 1.0 | 1.0 | ||||||||||
| Debt on commitments to purchase | ||||||||||||||
| non-controlling interests (3) | 0.0 | 0.0 | 1.8 | 1.8 | ||||||||||
| Change in consolidation scope (4) | (4.4) | 0.0 | 0.0 | 0.0 | (4.4) | (4.6) | (9.0) | |||||||
| IFRS16 amendement (5) | 3.2 | 0.0 | 3.2 | 0.0 | 3.2 | |||||||||
| Consolidated net income | (14.5) | 0.0 | (14.5) | 18.1 | 3.6 | |||||||||
| Other comprehensive income | 0.4 | 46.8 | (3.7) | 43.5 | 43.5 | 0.6 | 44.1 | |||||||
| Total comprehensive income | 0.0 | 0.0 | 0.0 | (14.5) | 0.4 | 0.0 | 46.8 | 0.0 | (3.7) | 0.0 | 43.5 | 29.0 | 18.7 | 47.7 |
| Other | (2.8) | (0.1) | (0.1) | (2.9) | (0.4) | (3.3) | ||||||||
| Equity as of 31 December 2021 | 3.2 | 608.5 | (2.8) | 1,155.3 | 1.2 | (0.1) | (79.2) | 0.9 | (67.7) | 0.8 | (144.1) | 1,620.2 | 23.4 | 1,643.6 |
(1) Increases in the share capital of controlled entities.
(2) Change in treasury shares of JCDecaux SA under the liquidity agreement entered into in May 2019.
(3) In 2021, payment to a partner of the purchase commitment of its stake in a controlled entity.
Revaluation and discounting effects on commitments to purchase non-controlling interests are recorded in the income statement under "Consolidated net income" as "Non-controlling interests" for €(2.1) million in 2021 and 2020.
(4) In 2021, changes in consolidation scope related to the acquisition of non-controlling interests in the United Kingdom and the restructuring of a group of entities in China. In 2020, changes in consolidation scope mainly related to the acquisition of non-controlling interests in China.
(5) After-tax impact of the application of the IFRS 16 amendment for rent reductions obtained in 2020. See Note 1.11.4 "IFRS 16 rent concessions in the context of the Covid-19 epidemic".
| In million euros | 2021 | 2020 | |
|---|---|---|---|
| NET INCOME BEFORE TAX | (10.0) | (637.9) | |
| Share of net profit of companies under the equity method | § 5.5 | (48.6) | 1.3 |
| Dividends received from companies under the equity method | § 11.4 & § 12.3 | 28.6 | 64.8 |
| Expenses related to share-based payments | § 5.2 | 1.0 | 0.0 |
| Gains and losses on lease contracts | § 5.2 | (200.5) | (281.6) |
| Depreciation, amortisation and provisions (net) | § 5.2 & § 5.3 | 1,070.2 | 1,441.7 |
| Capital gains and losses and net income (loss) on changes in scope | § 5.2 & § 5.3 | (12.0) | 36.8 |
| Net discounting expenses | § 5.3 | 3.6 | 4.4 |
| Net interest expense & interest expenses on IFRS16 lease liabilities | § 5.3 | 119.9 | 149.3 |
| Financial derivatives, translation adjustments, amortised cost and other | 0.1 | 11.7 | |
| Change in working capital | 165.7 | 237.4 | |
| Change in invent ories | 33.0 | 3.3 | |
| Change in t rade and ot her rec eivables | (12.9) | 290.0 | |
| Change in trade and other payables | 145.6 | (55.9) | |
| Interest paid on IFRS16 lease liabilities | § 4.16 | (63.7) | (82.1) |
| Interest paid | (41.9) | (20.3) | |
| Interest received | 2.9 | 3.0 | |
| Income tax paid | (13.4) | (40.3) | |
| NET CASH FLOWS FROM OPERATING ACTIVITIES | § 6.1 | 1,001.8 | 888.1 |
| Cash payments on acquisitions of intangible assets and property, plant and equipment | (169.0) | (218.8) | |
| Cash payments on acquisitions of financial assets (long-term investments) net of cash acquired | (16.3) | (30.9) | |
| Cash payments on acquisitions of other financial assets | (21.6) | (105.0) | |
| Total investments | (207.0) | (354.7) | |
| Cash receipts on proceeds on disposals of intangible assets and property, plant and equipment | 18.7 | 41.8 | |
| Cash receipts on proceeds on disposals of financial assets (long-term investments) net of cash sold | 0.3 | 31.7 | |
| Cash receipts on proceeds on disposals of other financial assets | 17.9 | 7.4 | |
| Total asset disposals | 37.0 | 81.0 | |
| NET CASH FLOWS FROM INVESTING ACTIVITIES | § 6.2 | (170.1) | (273.7) |
| Dividends paid | (9.9) | (7.8) | |
| Purchase of treasury shares | (22.2) | (24.7) | |
| Cash payments on acquisitions of non-controlling interests | (2.6) | (0.9) | |
| Capital decrease | 0.0 | (0.3) | |
| Repayment of long-term borrowings | § 6.4 | (1,501.7) | (667.9) |
| Repayment of lease liabilities | § 4.16 | (647.8) | (533.2) |
| Acquisitions and disposals of treasury financial assets | 12.5 | 24.8 | |
| Cash outflow from financing activities | (2,171.8) | (1,210.0) | |
| Cash receipts on proceeds on disposal of interests without loss of control | 0.0 | 0.0 | |
| Capital increase | 0.2 | 1.2 | |
| Sale of treasury shares | 21.2 | 23.7 | |
| Increase in long-term borrowings | § 6.4 | 1,216.1 | 2,033.7 |
| Cash inflow from financing activities | 1,237.4 | 2,058.7 | |
| NET CASH FLOWS FROM FINANCING ACTIVITIES | § 6.3 | (934.4) | 848.7 |
| CHANGE IN NET CASH POSITION | (102.7) | 1,463.1 | |
| Net cash position beginning of period | § 4.14 | 1,593.6 | 142.4 |
| Effect of exchange rate fluctuations and other movements | (3.6) | (11.9) | |
| Net cash position end of period (1) | § 4.14 | 1,487.4 | 1,593.6 |
(1) Including €1,493.8 million in cash and cash equivalents and €(6.4) million in bank overdrafts as of 31 December 2021, compared to €1,607.8 million and €(14.2) million respectively as of 31 December 2020.
The JCDecaux SA consolidated financial statements for the year ended 31 December 2021 include JCDecaux SA and its subsidiaries (hereinafter referred to as the "Group") and the share of the Group's equity in associates and joint ventures.
Pursuant to European Regulation No. 1606/2002 of 19 July 2002, the 2021 consolidated financial statements were prepared in accordance with IFRS, as adopted by the European Union. They were approved by the Executive Board and authorised for release by the Supervisory Board on 9 March 2022. These financial statements shall only be considered final upon approval by the General Meeting of Shareholders.
The values shown in the tables are generally expressed in millions of euros. The sum of the rounded amounts may differ, albeit insignificantly, from the reported values.
The principles used for the preparation of these financial statements are based on:
The accounting policies adopted are identical to those used for the preparation of the consolidated financial statements for the year ended 31 December 2020, with the exception of the adoption of the following amendments to standards and interpretations adopted by the European Union and applicable from 1 January 2021:
The impacts related to application of the amendment to IFRS 16 "Covid-19-Related Rent Concessions beyond 30 June 2021" are detailed in Note 1.11.4 "IFRS 16 Rent concessions in the context of the Covid-19 epidemic".
The application of other amendments, interpretations and standards has had no significant impact on the consolidated financial statements.
In the absence of specific IFRS provisions on the accounting treatment of debts on commitments to purchase noncontrolling interests, the accounting principles used in the previous consolidated financial statements have been maintained and are explained in Note 1.19 "Commitments to purchase non-controlling interests". In particular, subsequent revaluation and discounting effects of the debt arising from such commitments are recognised in net financial income and allocated to non-controlling interests in the income statement, with no impact on the net income Group share.
In addition, the Group has opted not to apply in advance the new standards, amendments to standards and interpretations adopted by the European Union when their application became mandatory only after 31 December 2021.
The financial statements of companies controlled by the Group are included in the consolidated financial statements from the date on which control is acquired to the date at which control ends.
The equity method is adopted for joint ventures and for associates, companies over which the Group exercises a significant influence on operating and financial policies.
All transactions between fully-consolidated Group companies are eliminated upon consolidation.
Inter-company results are also eliminated. Capital gains or losses on inter-company sales carried out by a company consolidated under the equity method are eliminated up to the percentage of ownership and offset against the value of the assets sold. Capital losses realised on inter-company sales to an equity-accounted company are governed by IFRS3R and capital gains realised on sales to an equity-accounted company fall under SIC13.
Transactions denominated in foreign currencies are translated into the functional currency of the entity at the rate prevailing on the transaction date. At the end of the period, monetary items are translated at the closing exchange rate and the resulting gains or losses are recorded in the income statement.
Long-term monetary assets held by a Group entity on a foreign subsidiary for which settlement is neither planned nor likely to occur in the foreseeable future are a part of the entity's net investment in a foreign operation. Accordingly, pursuant to IAS 21 "The Effects of Changes in Foreign Exchange Rates", exchange differences on these items are recorded in other comprehensive income until the investment's disposal or disqualification. Otherwise, exchange differences are recorded in the income statement.
The Group's consolidated financial statements are prepared in euros, the presentation and functional currency of the parent company.
Assets and liabilities of foreign subsidiaries are translated into the Group's presentation currency at the closing exchange rate, and the corresponding income statement is translated at the average exchange rate for the period. Resulting translation adjustments are directly allocated to other comprehensive income.
At the time of a total or partial disposal, with loss of control, the liquidation of a foreign entity, or a step acquisition giving control, translation adjustments accumulated in equity are reclassified in the income statement.
Under the process of preparing the consolidated financial statements, the valuation of some assets and liabilities requires the use of judgments, assumptions and estimates. This primarily involves the determination of the amount of lease liabilities and right-of-use, the valuation of goodwill, property, plant and equipment and intangible assets, the valuation of investments under the equity method, determining the amount of provisions for employee benefits and dismantling, and the valuation of commitments on securities. These judgments, assumptions and estimates are based on information available or situations existing at the financial statement's date of preparation, which in the future could differ from reality particularly in the context of the global crisis linked to the Covid-19 pandemic, creating growing uncertainties over the future outlook. Valuation methods are described in more detail, mainly in Note 1.10 "Impairment of intangible assets, property, plant and equipment, right-of-use and goodwill", in Note 1.11 "Leases", in Note 1.12 "Investments under the equity method", in Note 1.20 "Provisions for retirement and other long-term benefits", and in Note 1.21 "Dismantling provisions". The results of sensitivity tests are provided in Note 4.4 "Goodwill, Property, plant and equipment (PP&E), right-of-use and Intangible assets impairment tests" for the valuation of goodwill, property, plant and equipment, intangible assets and right-of-use, in Note 4.5 "Investments under the equity method and impairment tests" for the valuation of investments under the equity method, in Note 4.20 "Financial assets and liabilities by category" for the valuation of debt on commitments to purchase noncontrolling interests and in Note 4.13 "Provisions" for the valuation of dismantling provisions and provisions for employee benefits.
With the exception of deferred tax assets and liabilities which are classified as non-current, assets and liabilities are classified as current when their recoverability or payment is expected no later than 12 months after the yearend closing date; otherwise, they are classified as non-current.
According to IAS 38, development costs must be capitalised as intangible assets if the Group can demonstrate:
Development costs capitalised in the statement of financial position include costs related to the development of or modification or improvement to the array of street furniture product lines and advertising structures in connection with contract proposals with a strong likelihood of success. Development costs also include the design and construction of models and prototypes.
The Group considers that it is legitimate to capitalise costs for the preparation of bids in response to calls for tender. Given the nature of the costs incurred (design and construction of models and prototypes) and the statistical success rate of the JCDecaux Group in its responses to tenders, the Group believes that these costs constitute development activities that can be capitalised under the aforementioned criteria. Indeed, said costs are directly related to a given contract and are incurred to win it. Amortisation, spread out over the term of the contract, begins when the project is awarded. Should the bid be lost, the amount capitalised is expensed.
Development costs carried in assets are recognised at cost less accumulated amortisation and impairment losses.
Other intangible assets primarily involve Street Furniture, Billboard and Transport contracts recognised in business combinations, which are amortised over a period corresponding to the time necessary for the cumulative discounted flows used for the valuation of the assets to cover almost all the assets. They also include upfront payments, amortised over the term of the contract, and software. Only individualised and clearly identified software (ERP in particular) and for which the Group has the control, is capitalised and amortised over a maximum period of 10 years. Other software expenses are recognised in expenses for the period.
Goodwill represents the fair value of the consideration transferred (including the acquisition-date fair value of the acquirer's previously held equity interest in the company acquired), plus the amount recognised for any noncontrolling interest in the acquired company, minus the net amount recognised in relation to the identifiable assets acquired and the liabilities measured at their fair value.
Goodwill is not amortised. The Group conducts impairment tests at least once a year at each statement of financial position date and at any time when there are indicators of impairment. Following these impairment tests, performed in accordance with the methodology described in Note 1.10 "Impairment of intangible assets, property, plant and equipment, right-of-use and goodwill", a goodwill impairment loss is recognised if necessary. When recognised, such a loss cannot be reversed at a later period.
Negative goodwill, if any, is immediately recognised directly in the income statement.
When determining the fair value of the assets and liabilities of the acquired entity, the Group is most notably required to value contracts and recognise these items as intangible assets for their fair value, in particular according to the excess earning method for new contracts, taking into account the residual term of the contracts and a probability of renewal for street furniture and transport activities, and a principle of attrition for billboard contracts. The intangible assets thus recognised are amortised over a period corresponding to the time necessary for the cumulative discounted flows used for the valuation of the assets to cover almost all the assets. When an onerous contract is identified, the Group decreases the gross amount of right-of-use attached to the contract and recognises any resulting liability.
Under IFRS, companies are granted a 12-month period, starting from the date of acquisition, to finalise the fair value measurement of the assets and liabilities acquired.
Acquisition-related costs are recognised by the Group in other operating expenses, except for acquisition-related costs for non-controlling interests, which are recorded in equity.
For staged acquisitions, any gain or loss arising from the fair value revaluation of the previously held equity interest is recorded in the income statement under other operating income and expenses at the time control is acquired. The fair value of this revaluation is estimated on the basis of the purchase price less the control premium.
For every partial or complete disposal with loss of control, any gain or loss from the disposal as well as the remeasurement of retained interest are recorded in the income statement under other operating income and expenses.
Furthermore, for acquisitions of non-controlling interests in controlled companies and the sale of interests without loss of control, the difference between the acquisition price or sale price and the carrying value of non-controlling interests is recognised in changes in equity attributable to owners of the parent company. The corresponding cash inflows and outflows are presented under "Net cash flows from financing activities" on the statement of cash flows.
Property, plant and equipment (PP&E) are presented in the statement of financial position at historical cost less accumulated depreciation and impairment losses.
Street furniture (bus shelters, MUPIs®, Seniors, Electronic Information Boards (EIB), Automatic Public Toilets, Morris Columns, etc.) and advertising panels for the transport business are depreciated on a straight-line basis over the term of the contracts between 8 and 25 years. Digital screens are depreciated over a 5 to 10-year period; their economic life-span can be shorter than the term of the contracts. Street furniture maintenance costs are recognised as expenses.
The expected discounted dismantling costs at the end of the contract are recorded under assets, with the corresponding provision, and amortised over the term of the contracts.
Billboards are depreciated according to the method of depreciation prevailing in the relevant countries in accordance with local regulations and economic conditions.
The main method of depreciation is the straight-line method over a period of 2 to 20 years.
Street furniture and billboard assets of the Group are insured against risks related to climatic events and their adaptation to these events is guaranteed by the carrying out of resistance tests. The amortisation periods are therefore determined according to normal durations of use; weather hazards are controlled through this insurance and through the tests carried out.
Property, plant and equipment:
| ▪ | Buildings and constructions | 10 to 50 years |
|---|---|---|
| ▪ | Technical installations, tools and equipment (excluding street furniture and billboards) |
5 to 10 years |
| ▪ | Street furniture and billboards | 2 to 25 years |
| Other property, plant and equipment: | ||
| ▪ | Fixtures and fittings | 5 to 16 years |
| ▪ | Transport equipment | 3 to 15 years |
| ▪ | Computer equipment | 3 to 5 years |
| ▪ | Furniture | 5 to 10 years |
Items of property, plant and equipment, intangible assets and right-of-use as well as goodwill are tested for impairment at least once a year.
Impairment testing consists in comparing the net book value of a Cash-Generating Unit (CGU) or a CGU group with its recoverable amount. The recoverable amount is either (i) the fair value of the asset (or group of assets) minus costs of disposal, or (ii) the value in use determined on the basis of future discounted cash flows, whichever is the greater.
The book value includes the right-of-use net of the book value of the lease liabilities, and the value in use is determined based on cash flows in line with the adjusted operating indicators.
When the recoverable amount is assessed on the basis of the value in use, cash flow forecasts are determined using growth assumptions based either on the term of the contracts, or over a five-year period with a subsequent perpetual projection and a discount rate reflecting current market estimates of the time value of money. The growth assumptions used do not take into account any external acquisitions. Risks specific to the tested CGU are reflected in the assumptions adopted for determining the cash flows and the discount rate used.
The risks and impacts related to climate change are taken into account in the impairment test assumptions but have no significant impact for the Group. Indeed, JCDecaux's assets are insured against risks related to climatic events, which limits the risk of financial impact from this type of event on the Group. In this way, future economic flows are secured and are not impacted by weather hazards.
When the book value of an asset (or group of assets) exceeds its recoverable amount, an impairment loss is recognised in the income statement to write down the asset's book value to the recoverable amount.
The values in use taken into account for impairment testing are determined on the basis of expected future cash flows, discounted at a rate based on the weighted average cost of capital. This rate reflects management's best estimates regarding the time value of money, the risks specific to the assets or CGUs, and the economic situation in the geographical areas where the business relating to these assets or CGUs is carried out.
Countries are broken down into six areas based on the risk associated with each country, and each area corresponds to a specific discount rate ranging from 7.0% to 14.5%, for the area presenting the highest risk. The after-tax rate of 7.0% used in 2021 (6% in 2020), was notably used in Western Europe (excluding Spain, Portugal, Italy and Ireland), North America, Japan, Singapore and South Korea. In addition, there is a risk premium on the Airports segment of 200 basis points (300 in 2020), reflecting the specific risk of this activity in the context of the unprecedented global crisis caused by the Covid-19 pandemic and an uncertain recovery horizon.
These are determined based on budgeted values for the first year following the closing of the accounts, and growth and change assumptions specific to each market and reflecting the expected future outlook. Recoverable amounts are based on business plans for which the procedures for determining future cash flows differ for the various business segments; the related time horizon usually exceeds five years owing to the nature and business activity of the Group, characterised by long-term contracts with a strong likelihood of renewal. In general:
- for the Street Furniture and Transport segments, future cash flows are calculated over the remaining term of contracts, taking into account the likelihood of renewal thereafter, with the business plan being conducted over the duration of the contract, usually between 5 and 20 years with a maximum term of 25 years;
The recoverable amount of a group of CGUs corresponds to the sum of the individual recoverable amounts of each CGU belonging to that group.
JCDecaux's core business contracts often contain specificities geared to the activity to which they relate (Street furniture, Transport and Billboard) or to their geographic area (local regulation or market practice).
Very often, each contract for Street Furniture and Transport business is a specific case with complex terms arising from direct negotiations or tender-offer conditions. Said terms may also be renegotiated during the life-span of the contract, mostly due to unexpected market events or to the operational deployment of advertising structures.
More than 15,000 contracts identified in over 75 countries fall within the scope of IFRS 16. These are essentially signed with municipalities, airports, transport companies, shopping centres and private landlords. The purpose of these contracts is to secure locations in which to install advertising panels used for the Group's main activity. Among the 15,000 contracts and more that fall within the scope of IFRS 16, almost 83% are advertising space lease agreements (Street furniture, Transport, and Billboard); they represented nearly 93% of lease liabilities as of 31 December 2021. The remaining 17% are real estate and vehicle contracts.
Fixed (or fixed in-substance) rent and fees are quite often minimum guarantees of variable fees based on the advertising revenue generated by advertising panels installed in the locations covered by the contract. This is a predominant feature for transport and shopping centre business, frequently the case for street furniture, but rarer in billboard advertising where rent and fees are not usually linked to generated revenue.
Fixed rent and fees and/or fixed in substance rent and fees or minimum guarantees may, according to the contracts:
Contracts may have widely different non-cancellable periods, ranging from 1 to 39 years in total:
▪ For large format billboard business, contracts range from 1 to 39 years. The duration varies significantly according to the countries and their local regulations, which are more or less restrictive, as well as market practices concerning relations between lessees and private landlords.
Regarding extension and renewal terms:
Only a small number of contracts has been identified in which JCDecaux has the sole right to exercise an early termination option. More often, either the agreement of both parties is required, or the early termination option is subject to specific conditions (e.g. force majeure, change in direction of road traffic for large format billboards, major economic recession or collapse of the advertising market in certain transport contracts).
As from 1 January 2019, each new contract is analysed to confirm whether or not it meets the definition of a lease. When the contractor who has granted advertising space to the Group has a right of substitution, allowing them to replace any space allocated at the start of the contract with another one over the duration of the contract in order to meet operational needs (except in the case of maintenance and repair activity), this right is considered to be substantive. This is the case for the Group's street furniture and transport business, which contains provisions giving the supplier who has granted advertising space to the Group (the contractor), the right to permanently or temporarily move certain equipment to another location or remove equipment. In the case of bus shelter contracts, the municipality may thus have the right to adapt the locations of bus shelters to changes in bus lines routes. In the case of bus contracts, the transport company may have the right to change the numbers of buses, the roads or the assignment of buses to roads. In the case of airport contracts, the grantor or the airport administration authority may also have the right to request that the advertising space be moved to adapt it to the airport's operational needs.
These rights may be exercised by the contractor at any time after a specific situation has arisen (for example in the event of restructuring, modification or extension of the airport, closure of roads, optimisation of the bus network, plans for refurbishment, maintenance and repair) or for any reason whatsoever, generally given scant definition in the contracts.
The bases for concluding that such agreements include substantive substitution rights are as follows:
The right to change location does not generally depend on a limited number of events or situations, but on the contrary arises for a very broad list of reasons (such as operational needs, general interest) or in certain cases for no reason defined in the Contract. This situation demonstrates that the contractor has control of the asset because it has the ability to change location only according to its own requirements or operational needs;
The economic benefits of contractors depend mainly on their core business:
When the substantive substitution right clause is invoked, the Group does not have control over the assets. These contracts therefore do not meet the definition of a lease under IFRS 16 and the fixed rent and fees for the year remain recognised as operating expenses in the same way as variable rent and fees. For these contracts, future fixed rent and fees commitments until the maturity of the contract are disclosed in off-balance sheet commitments for the total amount to which the Group is committed.
Moreover, both exemptions authorised by IFRS 16 – short-term leases (12 months or less) and low value leases – have been applied.
In accordance with IFRS 16 "Leases" applied since 1 January 2019 using the full retrospective transition method, the Group recognises a lease liability for contractual minimum and fixed rental payments (or variable based on an index) against a right-of-use asset which is depreciated on a straight-line basis over the term of the lease or the useful life of the underlying asset.
The fixed rent charge in the operating margin is replaced by the amortisation of the right-of-use recognised in EBIT and the financial expense of the lease liability recorded in financial income and expenses.
Variable rent and fees based on revenue are excluded from the lease liability and are recorded in operating expenses when they occur.
The standard has no impact on net income over the lease term but has a negative impact at the beginning of the contract, which reverses over time due to declining interest expenses.
The Group's net debt excludes lease liabilities.
In the statement of cash flows, only the payment of interest on the lease liability impacts cash flows from operating activities, while the principal portion impacts the cash flows from financing activities.
Net deferred taxes are recognised on leases falling under the scope of IFRS 16; right of use and lease liabilities are analysed together.
The amount of the lease liability depends on the assumptions used for the calculation thereof, such as commitment term and marginal borrowing rate.
The marginal borrowing rate is calculated for each lease as the risk-free rate for the lease's currency plus the currency basis, if available, and the subsidiary's credit margin based on the Group's credit risk or in a few specific cases linked to own financing in the subsidiaries, to a credit risk specific to the subsidiary concerned. These components are defined in light of the average weighted life of the lease.
The contract term is determined by taking into account the non-cancellable period and the periods covered by renewal (or termination) options where it is reasonably certain that these options will be exercised (or not).
With respect to extension or termination options, the Group complies with IFRS 16 and the IFRS IC decision of November 2019 on lease terms and the useful lives of leasehold improvements:
economic interest in not interrupting this contract, then the contract is enforceable beyond the date on which it can be interrupted,
▪ When the lessor is the only one to be able to exercise an extension option, this option is automatically included in the duration of the contract. If the lessor is the only one to be able to exercise an early termination option, this option does not reduce the contractual term.
For contracts that have an indefinite term, that are cancellable at any time by either party, or that are tacitly renewed in accordance with the IFRS IC decisions on lease terms, the useful life of leasehold improvements is used to determine the contract term or, in the context of tacitly renewed contracts, the average term to date of the tacitly renewed contracts.
With regard to French commercial leases, in accordance with the ANC's statement of conclusion dated 3 July 2020 and the illustration issued by the CNCC in November 2020, the term generally applied by the Group is nine years, with a non-cancellable period of three years. There is no renewal option at the end of the lease for major contracts. Said contracts are never tacitly renewed and are always renegotiated.
Changes and re-estimates of contracts mainly relate to signed amendments to contracts and to the life of the contract, in particular a change in the amount of rents to be paid or a change in the reasonably certain end-date when a decision is made regarding the extension or early termination of a contract. Such changes lead to a reestimation of the lease liability against the right-of-use. The impact of this contract modification presents a linearised effect in the income statement on the new residual term of the contract and may lead, in the event of termination of contracts, to a positive effect in the income statement.
Contracts already signed but not started at the closing date are disclosed in off-balance sheet commitments.
In the context of the Covid-19 health crisis, the Group has negotiated reductions in fixed and minimum guaranteed rents with its concession grantors without compensation or any amendment to the other terms of their contracts.
For contracts falling within the scope of IFRS 16, i.e. contracts that do not include substantive substitution rights, the amount of these rent reductions is recognised:
Under the application of the amendment to IFRS 16 "Covid-19-related rent concessions beyond 30 June 2021":
At the date of acquisition, investments under the equity method include the share of the Group's equity (excluding non-controlling interests) as well as the goodwill recognised on the acquisition of these shares.
The share of impairment of the assets recognised at the time of acquisition or upon the fair value adjustment of existing assets is presented under "Share of net profit of companies under the equity method".
If the Group's share of losses of an equity-accounted entity exceeds its interest in that entity, its share is reduced to zero. If the Group considers itself as involved in losses, a provision is recognised under provisions for contingencies for the share of losses exceeding the initial investment as well as loans and receivables.
Investments under the equity method are subject to impairment tests on an annual basis, or when existing conditions suggest a possible impairment. When necessary, the related loss, which is recorded in "Share of net profit of companies under the equity method," is calculated on the asset's recoverable value which is defined as either (i) the fair value of the asset less costs of disposal, or (ii) its value in use based on the expected future cash flows less net debt, whichever is the greater. For listed companies, the fair value used as part of impairment tests corresponds to the stock price. The method used to calculate the values in use is the same one as applied for PP&E, intangible assets and right-of-use as described in Note 1.10 "Impairment of intangible assets, property, plant and equipment, right-of-use and goodwill".
This heading mainly includes investments in non-consolidated entities (financial investments), loans and loans to participating interests granted to companies accounted for under the equity method or non-consolidated entities, deposits and guarantees and advances paid on the acquisition of long-term investments under conditions precedent.
They are recorded and measured:
Inventories mainly consist of:
Inventories are valued at weighted average cost, and may include production, assembly and logistic costs. Inventories are written down to their net realisable value when said value is lower than cost.
Trade receivables are recorded at fair value, which corresponds to their nominal invoice value, unless there is a significant discounting effect. After initial recognition, they are measured at amortised cost.
A provision for impairment is recognised when their recovery amount is less than their book value. The Group recognises an additional provision relating to expected losses using the simplified method on the performing receivables by applying an average rate of default of payment based from historical statistical data. This forwardlooking model based on expected losses applies to receivables upon their initial recognition.
The Group can proceed to transfers of receivables as part of recurring or one-off programs. Pursuant to the provisions of IFRS 9, an analysis is then carried out to assess the transfer of the risks and benefits inherent in the ownership of these receivables and in particular that of the credit risk, the risk of late payment and the risk of dilution. If this review confirms the transfer of almost all the risks and benefits associated with the receivables transferred, these are removed from the statement of financial position.
Managed cash includes cash, cash equivalents and treasury financial assets. These items are measured at fair value and changes in fair value are recognised in net financial income.
Cash recognised as assets in the statement of financial position includes cash at bank and cash in hand. Cash equivalents consist of short-term investments and short-term deposits. Short-term investments and short-term deposits are easily convertible into a known cash amount and are subject to low risk of change in value, in accordance with IAS 7.
Treasury financial assets are short-term liquid investments and cash owned by the Group but held in escrow accounts in connection with the execution of contracts. These assets have the main characteristics of cash equivalents but do not strictly comply with all the criteria to be qualified as such, according to IAS 7. They are included in the calculation of the Group's net debt.
For the consolidated statement of cash flows, net cash consists of cash and cash equivalents as defined above, net of bank overdrafts.
Financial debts are initially recorded at the fair value generally corresponding to the amount received less related issuance costs and are subsequently measured at amortised cost.
A financial derivative is a financial instrument having the following three characteristics:
Financial derivatives are recognised in the statement of financial position at fair value in assets or liabilities. Changes in subsequent values are offset in the income statement, unless they have been qualified as part of an effective cash flow hedge (effective portion) or as a foreign net investment.
Hedge accounting may be adopted if a hedging relationship between the hedged item (the underlying) and the financial derivative is established and documented from the time the hedge is set up, and its effectiveness is demonstrated from inception and at each period-end. The Group currently limits itself mainly to two types of hedges for financial assets and liabilities:
The hedging relationship involves a single market parameter, which for the Group is currently either a foreign exchange rate or an interest rate. When a derivative is used to hedge both a foreign exchange and interest rate risk, the foreign exchange and interest rate impacts are treated separately.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. Any cumulative gain or loss on a cash flow hedge as part of the hedging of a highly probable forecasted transaction recognised under other comprehensive income is maintained under other comprehensive income until the forecasted transaction occurs. If the hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised under other comprehensive income is transferred to net financial income for the period.
For derivatives that do not qualify for hedge accounting, any gains or losses arising from changes in fair value are recorded directly under net financial income for the period.
The accounting classification of financial derivatives instruments in current or non-current items is determined by the maturity of the derivative.
In the absence of any position from the IASB on the accounting treatment of commitments to purchase noncontrolling interests, the accounting positions taken in the previous consolidated financial statements have been maintained for all Group commitments.
The application of IAS 32 results in the recognition of a liability relating to commitments to purchase shares held by non-controlling interests in the Group's subsidiaries, not only for the portion already recognised in non-controlling interests (reclassified in liabilities), but also for the excess resulting from the present value of the commitment. The amount of this excess portion is deducted from non-controlling interests in the equity of the statement of financial position.
In the absence of any position from the IASB on the accounting treatment of commitments to purchase noncontrolling interests, subsequent changes in the fair value of the liability are recognised under net financial income and allocated to non-controlling interests in the income statement, with no impact on consolidated net income (Group share).
Commitments recorded in this respect are presented under the statement of financial position heading "Debt on commitments to purchase non-controlling interests".
The Group's obligations resulting from defined benefit plans, as well as their cost, are recognised as liabilities and determined using the projected unit credit method.
This method consists in measuring the obligation based on the projected end-of-career salary and the rights vested at the valuation date, determined in accordance with collective trade union agreements, company agreements or the legal rights in effect.
The actuarial assumptions used to determine the obligations vary according to the economic conditions prevailing in the country of origin and the demographic assumptions specific to each company.
These plans are either funded, with their assets being managed by an entity that is legally separate and independent from the Group, or partially funded or not funded, with the Group's obligations being covered by a provision in the statement of financial position. The income from the plan's assets is estimated based on the discount rate used for the benefit obligation.
For the post-employment benefit plans, the actuarial gains and losses are immediately and entirely recognised under other comprehensive income with no option to reclassify in the income statement. Past service costs are immediately and fully recorded in the income statement on acquired rights as well as on future entitlements.
For other long-term benefits, actuarial gains or losses and past service costs are recognised as income or expenses when they occur.
The effects of discounting the provision for employee benefits are presented in net financial income (loss).
Costs for dismantling street furniture at the end of a contract are recorded under provisions, when a contractual dismantling obligation exists at a foreseeable date. These provisions represent the entire estimated dismantling cost from the contract's inception and are discounted. In return, dismantling costs are offset under assets in the statement of financial position and amortised over the term of the contract. The discounting charge is recorded as a financial expense. The discount rate applied is the swap rate in the country concerned for the average weighted life of the assets of the contracts.
In accordance with IFRS 2 "Share-based payment", stock options granted to employees are considered to be part of compensation in exchange for services rendered over the period extending from the grant date to the vesting date.
The fair value of services rendered is determined by reference to the fair value of the financial instruments granted.
The fair value of options is determined at their grant date by an independent actuary, and any subsequent changes in the fair value are not taken into account. The Black & Scholes valuation model used is based on the assumptions described in Note 5.2 "Net operating expenses" hereafter.
The cost of services rendered is recognised in the income statement and offset under an equity heading on a basis that reflects the vesting pattern of the options. This entry is recorded at the end of each accounting period until the date at which all vesting rights of the plan in question have been fully vested.
The amount stated in equity reflects the extent to which the vesting period has expired and the number of options granted that, based on management's best available estimate, will ultimately vest. The vesting period runs from the date of acceptance by the beneficiary.
Stock option plans are granted based on individual objectives and Group results. The exercise of stock options is subject to years of continuous presence in the company.
The fair value of free shares is determined on their date of grant by an independent actuary. This fair value of the free share is determined according to the price on the grant date less discounted future dividends.
Obtaining all the free shares takes place after continuous presence within the Group defined according to the plans and according to the achievement of Group and individual performance conditions.
The cost of services rendered is recognised in the income statement by offsetting an equity item, following a profile that reflects the terms of acquisition of the free shares. The vesting period runs from the date of acceptance by the beneficiary.
The share subscription and purchase plans which will be settled in cash are assessed at their fair value, recorded in the income statement and offset with a liability. This liability is measured at each closing date up to its settlement.
The Group's revenue comes primarily from sales of advertising space on street furniture equipment, billboards and advertising in transport systems.
Advertising space revenue, rentals and provided services are recorded as revenue on a straight-line basis for the period over which the service is performed. The duration of said period is generally between 1 week and 3 years, with the exception of specific situations in the Transport segment, including most notably advertising contracts on walkways in airports or at iconic locations, for which the duration may exceed five years.
The trigger event for advertising space revenue recognition is the execution of the advertising campaign.
Advertising space revenue is recorded on a net basis after deduction of commercial rebates. In some countries, commissions are paid by the Group to advertising agencies and media brokers when they act as intermediaries between the Group and advertisers. These commissions are then deducted from revenue.
In agreements where the Group pays variable fees or revenue sharing, and to the extent that the Group acts as the principal in its advertising space sales activity, the Group recognises all gross advertising revenue as revenue and books fees and the portion of revenue repaid as operating expenses.
Discounts granted to customers for early payment are deducted from revenue.
Provision of advertising space contracts is considered to be one-off long-term service delivery.
When discounts are granted to customers on long-term contracts for the provision of advertising space, these are recorded as a cumulative adjustment over the entire duration of the contract, with the service still to be provided not being considered as distinct from the service already performed.
In addition to marketing advertising space on furniture, the Group also sells, rents and maintains street furniture, the revenue from which is recognised under Street Furniture business. The Group also earns non-advertising revenues from its Self-Service Bicycle business as well as the implementation of innovative technical solutions, under the "JCDecaux Innovate" name, plus services ancillary to its analogue and digital revenues. Non-advertising revenue is recognised on a straight-line basis over the duration of the contract.
The operating margin is defined as revenue minus direct operating and selling, general and administrative expenses.
It includes charges to provisions net of reversals relating to trade receivables.
The operating margin is impacted by cash discounts granted to customers deducted from revenue, and cash discounts received from suppliers deducted from direct operating expenses. It also includes stock option or free share expenses recognised in the line item "Selling, general and administrative expenses".
EBIT is determined on the basis of the operating margin minus the consumption of spare parts used for maintenance, depreciation, amortisation and provisions (net), goodwill impairment losses, and other operating income and expenses. Inventory impairment losses are recognised in the line item "Maintenance spare parts".
Other operating income and expenses include the gains and losses generated by the disposal of property, plant and equipment, intangible assets, joint ventures and associates, gains and losses on leases, gains and losses generated by the loss of control of companies, any gain or loss resulting from the fair value revaluation of a retained interest, any gain or loss resulting from the fair value revaluation of a previously held equity interest at the time control is acquired with staged acquisitions, potential price adjustments resulting from events subsequent to the acquisition date, as well as any negative goodwill, acquisition-related costs, and non-recurring items.
Net charges related to the results of impairment tests performed on property, plant and equipment, intangible assets and right-of-use are included in the line item "Depreciation, amortisation and provisions (net)".
Deferred taxes are recognised based on timing differences between the accounting value and the tax base of assets and liabilities. They mainly stem from consolidation restatements (standardisation of Group accounting principles and amortisation/depreciation periods for property, plant and equipment and intangible assets, leases, recognition of contracts as part of the purchase method, etc.). Deferred tax assets and liabilities are measured at the tax rate expected to apply for the period in which the asset is realised or the liability is settled, based on the tax regulations that were adopted at the closing date. They may be written down if a subsidiary has a net deferred tax asset whose short-term recovery is uncertain.
Deferred tax assets on tax losses carried forward are recognised only when it is probable that the Group will have future taxable profits against which these tax losses may be offset. The period for recovering ordinary losses used by the Group is a 3-to-5-year time frame adapted to the specific characteristics of each country.
In accordance with IFRS, the Group determined that the CVAE (French tax known as the Cotisation sur la Valeur Ajoutée des Entreprises) is an income tax expense.
The Group had not made any significant acquisitions or disposals in 2021.
Other changes, in particular liquidations, disposals and acquisitions of investments, are described in Note 13 "Scope of consolidation".
The purchase price allocation of Abri Services Media group, acquired end of December 2020, within the 12-month period following the acquisition, had the following impacts on the Group's consolidated financial statements:
| Fair value at the date of | ||
|---|---|---|
| In million euros | acquisition | |
| Non-current assets | 16.8 | |
| Current assets | (2.0) | |
| Total assets | 14.7 | |
| Non-current liabilities | 6.1 | |
| Current liabilities | (3.6) | |
| Total liabilities | 2.5 | |
| Fair value of net assets at 100% | (a) | 12.2 |
| - of which non-controlling interests | (b) | 0.0 |
| Total consideration transferred | (c) | 0.5 |
| - of which fair value of share previously held | ||
| - of which purchase price | 0.5 | |
| Goodwill | (d)=(c)-(a)+(b) | (11.8) |
| - including Goodwill allocated to companies under the equity method | (e) | 0.0 |
| Goodwill IFRS (1) | (f)=(d)-(e) | (11.8) |
| Purchase price | (0.5) | |
| Net cash acquired | ||
| Acquisitions of long-term investments over the period | (0.5) |
(1) The option of the full goodwill calculation method was not used.
To measure the Group's operational performance and to inform managers about their decision-making in line with historical data, segment information is adjusted by:
These two adjustments comply with the principles followed in the Group's operating management reporting used by the Executive Board – the Chief Operating Decision Maker (CODM).
Consequently, pursuant to IFRS 8, the operating data presented hereafter, in line with internal communication, is "adjusted". The "adjusted" data is reconciled with the IFRS financial statements for which the IFRS 11 leads to consolidation of the joint ventures under the equity method and where "core business" rents are accounted for in accordance with IFRS 16 (recognition of a lease liability and a right-of-use asset in respect of the fixed rent & fees and guaranteed minimums) and their impact on the income statement (right-of-use amortisation and discounting of the lease liability) replace the rent charge.
The Street Furniture operating segment covers, in general, the advertising agreements relating to public property entered into with cities and local authorities. It also includes advertising in shopping malls, as well as the renting of street furniture, the sale and rental of equipment (automatic public toilets, bikes…), cleaning and maintenance and other various services.
The Transport operating segment covers advertising in public transport systems, such as airports, metros, buses, tramways and trains.
The Billboard operating segment covers, in general, advertising on private property, including either traditional large format or back-light billboards, neon-light billboards and advertising wraps.
Transfer prices between operating segments are equal to prices determined on an arm's length basis, as in transactions with third parties.
The breakdown of the 2021 segment reporting by operating segment is as follows:
| In million euros | Street Furniture |
Transport | Billboard | Total |
|---|---|---|---|---|
| Revenue (1) | 1,440.1 | 877.8 | 426.7 | 2,744.6 |
| Operating margin | 323.4 | 58.2 | 40.7 | 422.3 |
| EBIT (2) | 42.8 | (17.4) | (16.8) | 8.7 |
| Acquisitions of intangible assets and PP&E net | ||||
| of disposals (3) | 128.0 | 16.5 | 13.0 | 157.5 |
(1) Including advertising revenue for €2,419.8 million and non-advertising revenue for €324.8 million.
(2) Including a net impairment charge related to impairment tests for €(7.6) million: €(7.2) million in Street Furniture and €(0.4) million in Transport. (3) Cash payments on acquisitions of intangible assets and property, plant and equipment net of cash receipts on proceeds on disposals of intangible assets and property, plant and equipment.
The reconciliation of this operating data from Adjusted to IFRS breaks down as follows:
| In million euros | Adjusted data (1) |
Joint ventures' impact (2) |
IFRS 16 impact (3) |
IFRS data |
|---|---|---|---|---|
| Revenue | 2,744.6 | (222.1) | 0.0 | 2,522.5 |
| Operating margin | 422.3 | (58.9) | 800.5 | 1,163.9 |
| EBIT | 8.7 | (39.5) | 99.5 | 68.6 |
| Acquisitions of intangible assets and PP&E net of | ||||
| disposals | 157.5 | (7.2) | 0.0 | 150.3 |
(1) Including the impact of IFRS 16 on non-core business contracts (of which €52.6 million for the cancellation of rents and €(46.5) million for rightof-use amortisation).
(2) Impact of change from proportionate consolidation to the equity method of joint ventures.
(3) Impact of IFRS 16 on core business rents of controlled companies.
The impact of €(222.1) million resulting from IFRS 11 (change from proportionate consolidation to the equity method for joint ventures) on the adjusted revenue is split between €(233.3) million of revenue from the joint ventures – see Note 11 "Information on the joint ventures" – and €11.2 million for the non-eliminated part of inter-company revenue from Group fully consolidated companies with joint ventures, under IFRS 11, bringing the IFRS revenue to €2,522.5 million.
The impact of €800.5 million resulting from IFRS 16 on the operating margin corresponds to the cancellation of core business rent and fees of controlled companies. The impact of €99.5 million resulting from IFRS 16 on the EBIT breaks down into €800.5 million of cancellation of rent and fees on the operating margin, €(725.5) million of the right-of-use amortisation, €23.6 million of net gain on changes in contracts, €(9.1) million of cancellation of reversals of provisions for onerous contracts and €9.8 million of the right-of-use amortisation resulting from the re-qualification of provisions for onerous contracts.
The breakdown of the 2020 segment reporting by operating segment is as follows:
| In million euros | Street Furniture |
Transport | Billboard | Total |
|---|---|---|---|---|
| Revenue (1) | 1,131.1 | 810.9 | 369.7 | 2,311.8 |
| Operating margin | 145.4 | 2.6 | (6.3) | 141.6 |
| EBIT (2) | (151.1) | (188.7) | (235.4) | (575.2) |
| Acquisitions of intangible assets and PP&E net of disposals (3) |
157.9 | 15.0 | 12.0 | 185.0 |
(1) Including advertising revenue of €2,031.2 million and non-advertising revenue of €280.6 million.
The reconciliation of this operating data from Adjusted to IFRS breaks down as follows:
| In million euros | Adjusted data (1) |
Joint ventures' |
IFRS16 impact (3) |
IFRS data |
|---|---|---|---|---|
| impact (2) | ||||
| Revenue | 2,311.8 | (212.0) | 2,099.8 | |
| Operating margin | 141.6 | (41.5) | 978.6 | 1,078.7 |
| EBIT | (575.2) | (19.5) | 118.9 | (475.8) |
| Acquisitions of intangible assets and PP&E net of | ||||
| disposals | 185.0 | (8.0) | 176.9 |
(1) Including the IFRS 16 impact on non-core business contracts (of which €43.1 million for the cancellation of rents and €(45.5) million for rightof-use amortisation).
(2) Impact of change from proportionate consolidation to the equity method for joint ventures.
(3) Impact of IFRS 16 on core business rents of controlled entities.
The impact of €(212.0) million resulting from IFRS 11 (change from proportionate consolidation to the equity method for joint ventures) on the adjusted revenue is split between €(220.3) million of revenue from the joint ventures – See Note 11 "Information on the joint ventures" – and €8.3 million for the non-eliminated part of inter-company revenue from Group fully consolidated companies with joint ventures, under IFRS 11, bringing the IFRS revenue to €2,099.8 million.
The impact of €978.6 million resulting from IFRS 16 on the operating margin corresponds to the cancellation of core business rent and fees of controlled companies. The impact of €118.9 million resulting from IFRS 16 on the EBIT breaks down into €978.6 million of cancellation of rent and fees on the operating margin, €(870.4) million of the right-of-use amortisation, €8.7 million of net gain on changes in contracts, €(14.6) million of cancellation of reversals of provisions for onerous contracts and €16.5 million of the right-of-use amortisation resulting from the requalification of provisions for onerous contracts.
The 2021 information by geographical area break down as follows:
| In million euros | Europe (1) | Asia Pacific (2) |
France | Rest of the world |
United Kingdom |
North America (3) |
Total |
|---|---|---|---|---|---|---|---|
| Revenue | 824.5 | 695.9 | 532.6 | 274.9 | 253.2 | 163.4 | 2,744.6 |
(1) Excluding France and the United Kingdom. Mainly Germany, Austria, Spain and Belgium.
(2) Mainly China, Australia and Hong Kong.
(3) Mainly the United States.
| In million euros | Europe (1) | Asia Pacific (2) |
France | Rest of the world |
United Kingdom |
North America (3) |
Total |
|---|---|---|---|---|---|---|---|
| Revenue | 694.3 | 603.5 | 442.8 | 206.3 | 203.8 | 161.3 | 2,311.8 |
(1) Excluding France and the United Kingdom. Mainly Germany, Austria, Spain and Belgium.
(2) Mainly China, Hong Kong and Australia.
(3) Mainly the United States.
No single customer reaches the 10% of Group revenue threshold.
The non-current segment assets by geographical area for the year 2021 (based on IFRS data) break down as follows:
Consolidated financial statements
| In million euros | Europe (1) | Asia Pacific |
France | Rest of the world |
United Kingdom |
North America |
Eliminations Intercos |
Total |
|---|---|---|---|---|---|---|---|---|
| Non-current segment assets(2) | 2,060.1 | 857.8 | 4,501.1 | 381.9 | 662.8 | (29.7) | (1,671.6) | 6,762.3 |
| Unallocated segment assets(3) | 123.9 |
(1) Excluding France and the United Kingdom.
(2) Excluding deferred tax assets and financial derivatives.
(3) Goodwill relating to Airports World that is not allocated by geographical area, as global coverage is a key success factor for this business activity from a commercial standpoint and in connection with the awarding and renewal of contracts. This also applies to impairment tests.
The non-current segment assets by geographical area for the year 2020 (based on IFRS data) breaks down as follows:
| In million euros | Europe (1) | Asia Pacific |
France | Rest of the world |
United Kingdom |
North America |
Eliminations Intercos |
Total |
|---|---|---|---|---|---|---|---|---|
| Non-current segment assets(2) | 2,913.3 | 1,871.8 | 1,690.8 | 853.8 | 743.9 | 562.9 | (1,391.0) | 7,245.5 |
| Unallocated segment assets(3) | 123.9 |
(1) Excluding France and the United Kingdom.
(2) Excluding deferred tax assets and financial derivatives.
(3) Goodwill relating to Airports World that is not allocated by geographical area, as global coverage is a key success factor for this business activity from a commercial standpoint and in connection with the awarding and renewal of contracts. This also applies to impairment tests.
The reconciliation of the free cash flow from Adjusted to IFRS for the year 2021 is as follows:
| Adjusted data |
Joint ventures' | IFRS 16 | IFRS data |
|
|---|---|---|---|---|
| In million euros | impact (1) | impact (2) | ||
| Net cash provided by operating activities | 369.0 | (15.0) | 647.8 | 1,001.8 |
| - Including Change in working capital | 131.4 | 1.7 | 32.6 | 165.7 |
| Acquisitions of intangible assets and PP&E net of | ||||
| disposals (3) | (157.5) | 7.2 | (150.3) | |
| Free Cash Flow | 211.5 | (7.8) | 647.8 | 851.5 |
(1) Impact of change from proportionate consolidation to the equity method of joint ventures.
(2) IFRS 16 impact on core and non-core business rents of controlled companies.
(3) Cash payments on acquisitions of intangible assets and property, plant and equipment net of cash receipts on proceeds on disposals of intangible assets and property, plant and equipment.
The reconciliation of the free cash flow from Adjusted to IFRS for the year 2020 restated is as follows:
| In million euros | Adjusted data |
Joint ventures' impact (1) |
IFRS 16 impact (2) |
IFRS data |
|---|---|---|---|---|
| Net cash provided by operating activities | 346.8 | 8.0 | 533.2 | 888.1 |
| - Including Change in working capital | 403.0 | (27.8) | (137.9) | 237.4 |
| Acquisitions of intangible assets and PP&E net of | ||||
| disposals (3) | (185.0) | 8.0 | (176.9) | |
| Free Cash Flow | 161.9 | 16.0 | 533.2 | 711.2 |
(1) Impact of change from proportionate consolidation to the equity method of joint ventures.
(2) IFRS 16 impact on core and non-core business rents of controlled companies.
(3) Cash payments on acquisitions of intangible assets and property, plant and equipment net of cash receipts on proceeds on disposals of intangible assets and property, plant and equipment.
2021 and 2020 changes in net book value:
| In million euros | 2021 | 2020 |
|---|---|---|
| Net value as of 1 January | 1,592.8 | 1,779.0 |
| Impairment loss | 0.0 | (176.0) |
| Decreases | 0.0 | 0.0 |
| Changes in scope (1) | (11.6) | 24.6 |
| Translation adjustments | 28.1 | (34.8) |
| Net value as of 31 December | 1,609.3 | 1,592.8 |
(1) The changes in scope in 2021 mainly concern the purchase price allocation of the Abri services group in December 2020.
2021 changes in gross value and net book value:
| Patents, | Leasehold | |||
|---|---|---|---|---|
| licences, | rights, | |||
| In million euros | Development costs |
advertising contracts, ERP (1) |
payments on account, other |
Total |
| Gross value as of 1 January 2021 | 104.2 | 1,124.7 | 44.3 | 1,273.2 |
| Acquisitions/Increases | 8.6 | 17.0 | 14.5 | 40.1 |
| Decreases | (2.4) | (6.4) | (9.4) | (18.2) |
| Changes in scope | 0.1 | (0.1) | 0.0 | |
| Translation adjustments | 0.3 | 33.7 | 1.4 | 35.4 |
| Reclassifications (2) | 0.3 | 8.2 | (6.6) | 1.9 |
| Goodw ill allocation | (0.1) | 15.7 | 15.7 | |
| Gross value as of 31 December 2021 | 110.9 | 1,192.8 | 44.3 | 1,348.1 |
| Amortisation / Impairment as of 1 January 2021 | (61.8) | (645.4) | (31.9) | (739.1) |
| Amortisation charge | (10.3) | (76.4) | (0.7) | (87.3) |
| Impairment loss | 0.0 | |||
| Decreases | 2.4 | 4.8 | 9.4 | 16.6 |
| Changes in scope | (0.1) | 0.1 | 0.0 | |
| Translation adjustments | (0.0) | (21.5) | (1.1) | (22.6) |
| Reclassifications (2) | (0.1) | (1.1) | (1.1) | |
| Goodw ill allocation | 0.1 | (0.1) | 0.0 | |
| Amortisation / Impairment as of 31 December 2021 | (69.7) | (738.6) | (25.4) | (833.7) |
| Net value as of 1 January 2021 | 42.4 | 479.2 | 12.4 | 534.1 |
| Net value as of 31 December 2021 | 41.2 | 454.2 | 18.9 | 514.4 |
(1) Includes the valuation of contracts recognised in connection with business combinations, in particular regarding the acquisition of Abri Services at the end of 2020, the allocation of which was finalised in 2021.
(2) The net impact of reclassifications is not nil, as some reclassifications have an impact on other items in the statement of financial position.
2020 changes in gross value and net book value:
| Patents, licences, | Leasehold | |||
|---|---|---|---|---|
| Development | advertising | rights, payments | ||
| In million euros | costs | contracts, ERP (1) | on account, other | Total |
| Gross value as of 1 January 2020 | 95.5 | 1,138.8 | 56.1 | 1,290.4 |
| Acquisitions/Increases | 11.3 | 15.3 | 9.0 | 35.6 |
| Decreases | (0.0) | (13.1) | (0.2) | (13.4) |
| Changes in scope | 0.3 | 0.3 | ||
| Translation adjustments | (0.9) | (36.8) | (4.0) | (41.7) |
| Reclassifications (2) | (1.7) | 20.2 | (16.5) | 1.9 |
| Goodwill allocation | 0.0 | |||
| Gross value as of 31 December 2020 | 104.2 | 1,124.7 | 44.3 | 1,273.2 |
| Amortisation / Impairment as of 1 January 2020 | (54.4) | (589.3) | (34.2) | (677.9) |
| Amortisation charge | (8.8) | (78.0) | (0.7) | (87.4) |
| Impairment loss | (10.5) | (0.1) | (10.6) | |
| Decreases | 0.0 | 13.1 | 0.2 | 13.3 |
| Changes in scope | 0.0 | |||
| Translation adjustments | 0.0 | 20.0 | 2.8 | 22.9 |
| Reclassifications (2) | 1.3 | (0.8) | 0.6 | |
| Goodwill allocation | 0.0 | 0.0 | ||
| Amortisation / Impairment as of 31 December 2020 | (61.8) | (645.4) | (31.9) | (739.1) |
| Net value as of 1 January 2020 | 41.1 | 549.5 | 21.9 | 612.5 |
| Net value as of 31 December 2020 | 42.4 | 479.2 | 12.4 | 534.1 |
(1) Includes the valuation of contracts recognised in connection with business combinations.
(2) The net impact of reclassifications is not nil, as some reclassifications have an impact on other items in the statement of financial position.
| 31/12/2020 | ||||
|---|---|---|---|---|
| Depreciation | ||||
| In million euros | Gross value | or provision | Net value | Net value |
| Land | 16.6 | (1.2) | 15.3 | 16.3 |
| Buildings | 93.1 | (73.9) | 19.2 | 30.9 |
| Technical installations, tools and equipment | 3,314.9 | (2,281.2) | 1,033.7 | 1,044.8 |
| Vehicles | 87.2 | (45.9) | 41.3 | 45.2 |
| Other property, plant and equipment | 173.2 | (138.2) | 35.0 | 37.8 |
| Assets under construction and down payments | 63.0 | (3.7) | 59.3 | 86.3 |
| Total | 3,748.0 | (2,544.1) | 1,203.9 | 1,261.3 |
2021 changes in gross value and net book value:
| Technical | |||||
|---|---|---|---|---|---|
| installations, tools | |||||
| In million euros | Land | Buildings | & equipment | Other | Total |
| Gross value as of 1 January 2021 | 17.5 | 99.5 | 3,163.3 | 347.9 | 3,628.2 |
| - of which dismantling cost | 196.4 | 196.4 | |||
| Acquisitions | 0.0 | 0.3 | 93.9 | 88.8 | 182.9 |
| - of which dismantling cost | 59.6 | 59.6 | |||
| - of which effect of rate change on dismantling cost | (5.7) | (5.7) | |||
| Decreases | (1.7) | (7.3) | (110.7) | (10.8) | (130.5) |
| - of which dismantling cost | (13.3) | (13.3) | |||
| Changes in scope | 0.0 | (1.1) | (0.1) | (1.2) | |
| Reclassifications (1) | 0.0 | 0.2 | 113.5 | (108.2) | 5.5 |
| Goodwill allocation | (0.5) | 0.0 | (0.5) | ||
| Translation adjustments | 0.7 | 0.5 | 56.5 | 5.8 | 63.5 |
| Gross value as of 31 December 2021 | 16.6 | 93.1 | 3,314.9 | 323.4 | 3,748.0 |
| Amortisation / Impairment as of 1 January 2021 | (1.2) | (68.6) | (2,118.5) | (178.6) | (2,366.9) |
| - of which dismantling cost | (121.7) | (121.7) | |||
| Depreciation charge net of reversals | 0.0 | (3.2) | (217.7) | (15.3) | (236.3) |
| - of which dismantling cost | (28.1) | (28.1) | |||
| Impairment loss | 0.0 | 0.0 | (8.0) | 0.0 | (8.0) |
| Decreases | 0.0 | 3.6 | 107.4 | 9.3 | 120.3 |
| - of which dismantling cost | 12.2 | 12.2 | |||
| Changes in scope | 0.0 | 0.9 | 0.2 | 1.1 | |
| Reclassifications (1) | (5.4) | (2.9) | (0.4) | (8.7) | |
| Goodwill allocation | 0.0 | 0.0 | 0.0 | 0.0 | |
| Translation adjustments | 0.0 | (0.4) | (42.3) | (2.7) | (45.4) |
| Amortisation / Impairment as of 31 December 2021 | (1.2) | (73.9) | (2,281.2) | (187.7) | (2,544.1) |
| Net value as of 1 January 2021 | 16.3 | 30.9 | 1,044.8 | 169.3 | 1,261.3 |
| Net value as of 31 December 2021 | 15.3 | 19.2 | 1,033.7 | 135.7 | 1,203.9 |
(1) The net impact of reclassifications is not nil, as some reclassifications have an impact on other items in the statement of financial position.
2020 changes in gross value and net book value:
| Technical | |||||
|---|---|---|---|---|---|
| installations, tools | |||||
| In million euros | Land | Buildings | & equipment | Other | Total |
| Gross value as of 1 January 2020 | 19.8 | 96.0 | 3,212.8 | 371.1 | 3,699.8 |
| - of which dismantling cost | 203.7 | 203.7 | |||
| Acquisitions | 1.1 | 77.1 | 124.3 | 202.5 | |
| - of which dismantling cost | 16.1 | 16.1 | |||
| - of which effect of rate change on dismantling cost | 2.9 | 2.9 | |||
| Decreases | (1.5) | (3.5) | (143.8) | (37.5) | (186.2) |
| - of which dismantling cost | (21.4) | (21.4) | |||
| Changes in scope | 0.2 | 10.9 | 0.5 | 11.6 | |
| Reclassifications (1) | 7.1 | 85.9 | (99.1) | (6.1) | |
| Goodwill allocation | 0.0 | (0.0) | 0.0 | 0.0 | |
| Translation adjustments | (0.9) | (1.4) | (79.8) | (11.4) | (93.4) |
| Gross value as of 31 December 2020 | 17.5 | 99.5 | 3,163.3 | 347.9 | 3,628.2 |
| Amortisation / Impairment as of 1 January 2020 | (1.2) | (69.6) | (2,057.5) | (176.8) | (2,305.1) |
| - of which dismantling cost | (114.6) | (114.6) | |||
| Depreciation charge net of reversals | (0.0) | (3.5) | (213.9) | (16.9) | (234.3) |
| - of which dismantling cost | (18.1) | (18.1) | |||
| Impairment loss | (22.8) | (3.4) | (26.1) | ||
| Decreases | 0.0 | 3.4 | 125.6 | 14.2 | 143.3 |
| - of which dismantling cost | 10.0 | 10.0 | |||
| Changes in scope | 0.0 | (0.0) | 0.0 | ||
| Reclassifications (1) | 0.6 | (1.1) | 0.7 | 0.2 | |
| Goodwill allocation | 0.0 | ||||
| Translation adjustments | 0.0 | 0.6 | 51.1 | 3.4 | 55.2 |
| Amortisation / Impairment as of 31 December 2020 | (1.2) | (68.6) | (2,118.5) | (178.6) | (2,366.9) |
| Net value as of 1 January 2020 | 18.6 | 26.4 | 1,155.3 | 194.3 | 1,394.7 |
| Net value as of 31 December 2020 | 16.3 | 30.9 | 1,044.8 | 169.3 | 1,261.3 |
(1) The net impact of reclassifications is not nil, as some reclassifications have an impact on other items in the statement of financial position.
| 31/12/2020 | ||||
|---|---|---|---|---|
| Depreciation | ||||
| In million euros | Gross value | or provision | Net value | Net value |
| Right-of-Use leased advertising space | 6,947.0 | (4,191.2) | 2,755.8 | 3,195.1 |
| Right-of-Use leased property | 363.6 | (183.7) | 179.9 | 190.8 |
| Right-of-Use leased vehicles | 81.1 | (54.5) | 26.6 | 28.8 |
| Right-of-Use other leases | 4.8 | (2.3) | 2.5 | 1.9 |
| Total | 7,396.5 | (4,431.7) | 2,964.8 | 3,416.5 |
2021 changes in gross value and net book value:
| In million euros | Right-of-use leased advertising space |
Right-of-use leased property |
Right-of-use leased vehicles |
Right-of-use other leases |
Total |
|---|---|---|---|---|---|
| Gross value as of 1 January 2021 | 7,049.8 | 335.1 | 75.4 | 3.4 | 7,463.7 |
| Increases | 527.3 | 36.8 | 8.4 | 1.3 | 573.7 |
| Equity impact (IFRS16 amendment) (1) | 5.8 | 5.8 | |||
| Change in scope | 0.3 | 1.3 | 1.6 | ||
| Decreases (2) | (953.1) | (18.5) | (4.6) | 0.0 | (976.2) |
| Translation adjustments | 317.3 | 9.9 | 0.6 | 0.1 | 327.9 |
| Gross value as of 31 December 2021 | 6,947.0 | 363.6 | 81.1 | 4.8 | 7,396.5 |
| Amortisation / Impairment as of 1 January 2021 | (3,854.7) | (144.3) | (46.6) | (1.5) | (4,047.2) |
| Depreciation charge net of reversals (3) | (715.7) | (36.2) | (10.7) | (0.8) | (763.3) |
| Equity impact (IFRS16 amendment) (1) | (1.1) | (1.1) | |||
| Decreases | 579.2 | 2.1 | 3.4 | 0.0 | 584.8 |
| Changes in scope | 0.0 | ||||
| Translation adjustments | (199.0) | (5.4) | (0.5) | (0.1) | (204.9) |
| Amortisation / Impairment as of 31 December 2021 | (4,191.2) | (183.7) | (54.5) | (2.3) | (4,431.7) |
| Net value as of 1 January 2021 | 3,195.1 | 190.8 | 28.8 | 1.9 | 3,416.5 |
| Net value as of 31 December 2021 | 2,755.8 | 179.9 | 26.6 | 2.5 | 2,964.8 |
(1) See Note 1.11.4 "IFRS 16 Rent concessions in the context of the Covid-19 epidemic". The equity impact after tax totalling €3.2 million.
(2) Includes the reduction of Right-of-use linked to reliefs treated as contract modifications because they do not fall within the scope of the IFRS 16 expedient (see Note 1.11.4 "IFRS 16 Rent concessions in the context of the Covid-19 epidemic").
(3) Including €2.4 million of net reversals of right-of-use amortisation relating to impairment tests.
2020 changes in gross value and net book value:
| In million euros | Right-of-use leased advertising space |
Right-of-use leased property |
Right-of-use leased vehicles |
Right-of-use other leases |
Total |
|---|---|---|---|---|---|
| Gross value as of 1 January 2020 | 8,148.7 | 331.4 | 28.8 | 51.6 | 8,560.5 |
| Increases | 459.8 | 96.7 | 12.3 | 1.7 | 570.5 |
| Decreases | (1,223.8) | (86.3) | (8.9) | (0.3) | (1,319.3) |
| Changes in scope | 0.0 | ||||
| Reclassifications | 17.9 | 3.1 | 44.1 | (49.4) | 15.7 |
| Translation adjustments | (352.8) | (9.7) | (0.9) | (0.2) | (363.7) |
| Gross value as of 31 December 2020 | 7,049.8 | 335.1 | 75.4 | 3.4 | 7,463.7 |
| Amortisation / Impairment as of 1 January 2020 | (4,204.6) | (190.7) | (11.4) | (37.9) | (4,444.7) |
| Depreciation charge net of reversals (1) | (853.9) | (35.8) | (12.3) | (0.7) | (902.7) |
| Decreases | 1,032.6 | 80.8 | 8.0 | 0.0 | 1,121.4 |
| Changes in scope | 0.0 | ||||
| Reclassifications | (17.8) | (3.3) | (31.5) | 37.0 | (15.7) |
| Translation adjustments | 189.0 | 4.8 | 0.6 | 0.1 | 194.5 |
| Amortisation / Impairment as of 31 December 2020 |
(3,854.7) | (144.3) | (46.6) | (1.5) | (4,047.2) |
| Net value as of 1 January 2020 | 3,944.1 | 140.7 | 17.4 | 13.7 | 4,115.8 |
| Net value as of 31 December 2020 | 3,195.1 | 190.8 | 28.8 | 1.9 | 3,416.5 |
(1) Including €1.8 million of net reversals of right-of-use amortisation relating to impairment tests.
Goodwill, property, plant and equipment, intangible assets and right-of-use refer to the following CGU groups:
| 31/12/2021 | 31/12/2020 | ||||||
|---|---|---|---|---|---|---|---|
| In million euros | Goodwill (1) | PP&E / intangible assets / Right-of-use (2) |
Total | Goodwill (1) | PP&E / intangible assets / Right-of-use (2) |
Total | |
| Street Furniture Europe (excluding France and United | |||||||
| Kingdom) | 390.0 | 230.9 | 620.9 | 387.7 | 254.6 | 642.3 | |
| France Roadside | 210.9 | 362.4 | 573.3 | 226.4 | 359.7 | 586.1 | |
| Pacific | 237.5 | 323.3 | 560.8 | 225.9 | 343.7 | 569.7 | |
| Billboard United Kingdom | 151.2 | 32.7 | 183.8 | 141.7 | 44.1 | 185.8 | |
| Billboard Europe (excluding France and United Kingdom) |
154.9 | 27.4 | 182.3 | 155.5 | 34.9 | 190.4 | |
| Billboard Rest of the World | 18.1 | 85.8 | 103.9 | 15.7 | 85.9 | 101.6 | |
| Street Furniture United Kingdom | 58.0 | 15.5 | 73.4 | 57.1 | (32.4) | 24.7 | |
| Airports World (excluding Pacific) | 123.9 | (88.6) | 35.3 | 123.9 | (82.3) | 41.6 | |
| Other | 176.3 | 16.5 | 192.9 | 173.9 | 38.1 | 211.9 | |
| Total | 1,520.8 | 1,005.9 | 2,526.7 | 1,507.8 | 1,046.4 | 2,554.2 |
This table takes into account the impairment losses recognised on property, plant and equipment, intangible assets, right-of-use and goodwill.
(1) Goodwill is shown net of net deferred tax liabilities related to contracts and provisions for onerous contracts deducted from right-of-use recognised in connection with business combinations, totalling, respectively, €88.5 million and €85.0 million as at 31 December 2021 and 31 December 2020.
(2) Intangible assets, property, plant and equipment and right-of-use are presented net of provisions for onerous contracts of €21.4 million and €19.7 million as at 31 December 2021 and 31 December 2020, respectively. They are also shown net of lease liabilities of €3,655.8 million and €4,145.8 million as at 31 December 2021 and 31 December 2020, respectively.
Impairment tests carried out at 31 December 2021 led to an overall impairment charge to EBIT of €(8.0) million on intangible assets and property, plant and equipment, a net depreciation of provision for onerous contracts of €(2.0) million, a net reversal of right-of-use amortisation of €2.4 million. No goodwill impairment has been recognised.
Impairment tests on goodwill, intangible assets, property, plant and equipment and right-of-use had a negative impact of €(5.9) million on net income Group share (versus €(207.1) million in 2020).
The discount rate, the operating margin ratio and the perpetual growth rate for the Billboard business are considered to be the Group's key assumptions with respect to impairment testing.
The countries are broken down into six areas based on the risk associated with each one, and each area corresponds to a specific discount rate ranging from 7.0% to 14.5% for the area presenting the highest risk. The after-tax rate of 7.0%, employed in 2021 (6.0% in 2020), was used, in particular, in Western Europe (excluding Spain, Portugal, Italy and Ireland), North America, Japan, Singapore, South Korea, where the Group generates 58.0% of its adjusted revenue. In addition, there is a risk premium of 200 basis points on the Airports CGU, reflecting the specific risk of this activity in the context of the unprecedented global crisis caused by the Covid-19 pandemic and an uncertain recovery horizon.
The average discount rate for the Group stood at 8.4% in 2021.
The sensitivity tests whose results are presented below were run at the level of each business plan and each CGU. Where a region has several CGUs, tests were run separately on each one.
o firstly, a 50 basis point rise in the discount rate for all businesses;
o secondly, by postponing the economic recovery following the Covid-19 crisis by one year in the cash flow forecasts;
The Airports CGU is tested at a global level.
The results below are an aggregate of the tests run on each business plan.
The results of the sensitivity tests demonstrate that:
| In millions of euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Joint ventures | 175.6 | 159.9 |
| Associates (2) | 238.8 | 232.6 |
| Total (1) | 414.4 | 392.5 |
(1) Including €14.7 million related to the Rest of the World area as of 31 December 2021 compared to €13.8 million as of 31 December 2020.
(2) The purchase price allocation of the Clear Media group was finalised during the period. The contractual relationships valued during the period reduce the initial amount of goodwill recognised under "Investments in associates".
The information related to the joint ventures and associates is provided in application of IFRS 12 "Disclosure of Interests in Other Entities" and is detailed in Note 11 "Information on the joint ventures" and in Note 12 "Information on associates".
No impairment loss was recognised on the associates or the joint ventures in 2021.
In 2020, an impairment loss was recognised on associates in the amount of €(4.0) million and on joint ventures in the amount of €(0.2) million.
For companies consolidated under the equity method, the results of the sensitivity tests demonstrate that:
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Financial investments | 1.4 | 0.9 |
| Loans | 37.5 | 23.9 |
| Loans to participating interests | 100.5 | 96.2 |
| Other financial investments | 43.0 | 43.8 |
| Total | 182.5 | 164.8 |
The €17.7 million increase in other financial assets at 31 December 2021 mainly concerns the loan granted to a company under equity method and exchange rate variation.
The maturity of other financial assets (excluding financial investments) breaks down as follows:
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| < 1 year | 17.6 | 3.4 |
| > 1 year & < 5 years | 154.5 | 145.9 |
| > 5 years | 8.9 | 14.6 |
| Total | 181.0 | 163.9 |
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Prepaid expenses | 8.1 | 8.0 |
| Miscellaneous receivables | 4.7 | 3.1 |
| Total Gross value for other receivables (non-current) | 12.8 | 11.1 |
| Write-down for miscellaneous receivables | (1.4) | (1.3) |
| Total Write-down for other receivables (non-current) | (1.4) | (1.3) |
| Total | 11.4 | 9.8 |
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Gross value of inventories | 188.8 | 221.2 |
| Raw materials, supply and goods | 136.2 | 157.5 |
| Intermediate and finished products | 52.6 | 63.7 |
| Write-down | (45.7) | (48.6) |
| Raw materials, supply and goods | (34.1) | (38.8) |
| Intermediate and finished products | (11.5) | (9.8) |
| Total | 143.1 | 172.6 |
Inventories mainly consist of:
As of 31 December 2021, France contributed €65.6 million to the total gross value, including 76% of inventories in work in progress and 24% of maintenance inventories.
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Trade receivables | 561.8 | 537.1 |
| Miscellaneous receivables | 22.7 | 17.9 |
| Other operating receivables | 19.2 | 21.1 |
| Miscellaneous tax receivables | 78.7 | 80.1 |
| Receivables on disposal of assets and equipment grant to be received | 0.0 | 0.0 |
| Down payments | 7.7 | 3.8 |
| Prepaid expenses | 81.9 | 73.7 |
| Total Gross value for Trade and other receivables | 771.9 | 733.8 |
| Write-down for trade receivables | (27.4) | (35.0) |
| Write-down for miscellaneous receivables | (1.4) | (1.3) |
| Write-down for other operating receivables | (0.1) | (0.1) |
| Total Write-down for Trade and other receivables | (28.9) | (36.4) |
| Total | 743.0 | 697.4 |
The increase in trade receivables remains in check during the period of business recovery thanks to the sale of receivables at the end of the year. Thus the increase in the "trade and other receivables" heading of €45.6 million at 31 December 2021, is mainly a result of business activity of €18.6 million, of currency effects of €29.2 million and of changes in scope of €(2.6) million. The balance of past-due and un-provisioned trade receivables was €222.5 million as of 31 December 2021 compared to €183.2 million as of 31 December 2020. 5.1% of the un-provisioned trade receivables were overdue by more than 90 days as of 31 December 2021 compared to 8.9% as of 31 December 2020. These receivables are held mainly against media agencies or international groups where debt recovery risk is low.
As of 31 December 2021, the Group has completed a non-recourse sale of trade receivables for an outstanding amount of €153.6 million. The assigned trade receivables were derecognised as of 31 December 2021 in accordance with the provisions of IFRS 9, with substantially all the risks and rewards associated with said assigned receivables transferred to the bank.
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Cash | 689.5 | 1,034.2 |
| Cash equivalents | 804.2 | 573.7 |
| Total cash and cash equivalents | 1,493.8 | 1,607.8 |
| Treasury financial assets | 46.0 | 57.6 |
| Total managed cash | 1,539.7 | 1,665.5 |
The Group has €1,539.7 million managed cash as of 31 December 2021, compared to €1,665.5 million as of 31 December 2020.
Cash and cash equivalents mainly include current account deposits, short-term deposits and money market funds. €5.2 million of the total of cash and cash equivalents were invested in guarantees as of 31 December 2021, compared to €9.4 million as of 31 December 2020.
As of 31 December 2021, treasury financial assets consisted of €46.0 million of short-term liquid investments (compared to €45.6 million as of 31 December 2020). As of 31 December 2020, treasury financial assets also included €12.0 million held in an escrow account by the Group in connection with operational contracts, where the cash belongs to the Group. These financial assets have the main characteristics of cash equivalents but do not strictly comply with all the criteria to be qualified as such according to IAS 7.
Breakdown of deferred taxes:
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| PP&E, intangible assets and provisions for onerous contracts | (137.3) | (159.8) |
| Tax losses carried forw ard | 66.4 | 37.6 |
| Provisions for dismantling costs | 23.3 | 22.6 |
| Provisions for retirement and other benefits | 21.3 | 26.1 |
| IFRS16 leases | 69.4 | 66.9 |
| Other | 11.8 | 26.8 |
| Total | 54.9 | 20.2 |
The €34.6 million increase of deferred tax assets net of the deferred tax liabilities is mainly due to an increase in deferred tax assets on tax losses carried forward for €28.8 million, and to deferred tax assets on intangible assets and property, plant and equipment totalling €22.5 million, partially offset by a decrease in other deferred tax totalling €(15.1) million.
As of 31 December 2021, the net deferred tax variations were as follows:
| In million euros | 31/12/2020 | Net expense | Reclassifications (1) |
DT on actuarial gains and losses |
Translation adjustments |
Changes in scope |
31/12/2021 |
|---|---|---|---|---|---|---|---|
| Deferred tax assets | 119.0 | 42.6 | (17.5) | (1.6) | 4.6 | (5.1) | 142.0 |
| Deferred tax liabilities | (98.8) | (0.4) | 17.5 | (2.3) | (3.1) | (0.0) | (87.1) |
| Total | 20.2 | 42.2 | 0.0 | (3.9) | 1.5 | (5.2) | 54.9 |
(1) In connection with the presentation of the net deferred tax position at the level of each company or tax group.
As of 31 December 2020, the net deferred tax variations were as follows:
| 31/12/2019 | Net expense | Reclassifications DT on actuarial | gains and | Translation adjustments |
Changes in scope |
31/12/2020 | |
|---|---|---|---|---|---|---|---|
| In million euros Deferred tax assets |
122.7 | 20.9 | (17.4) | losses 2.1 |
(6.9) | (2.3) | 119.0 |
| Deferred tax liabilities | (132.1) | 10.6 | 17.4 | 0.3 | 1.8 | 3.2 | (98.8) |
| Total | (9.4) | 31.5 | 0.0 | 2.4 | (5.1) | 0.8 | 20.2 |
As of 31 December 2021, the amount of deferred tax assets on unrecognised losses carried forward was €213.1 million, compared to €188.8 million as of 31 December 2020.
As of 31 December 2021, share capital amounted to €3,245,684.82 divided into 212,902,810 shares of the same class and fully paid up.
| Number of outstanding shares as of 1 January 2021 | 212,902,810 |
|---|---|
| Shares issued following the exercise of options | 0 |
| Number of outstanding shares as of 31 December 2021 | 212,902,810 |
The Group holds 124,514 treasury shares as of 31 December 2021.
The Group granted a free share allocation plan in 2021 (see note on staff costs in Note 5.2 "Net operating expenses").
The cost associated with all current plans amounted to €1.0 million in 2021.
The General Meeting held on 20 May 2021 decided to not pay a dividend for any of the 212,902,810 shares making up the share capital at 31 December 2020.
Non-controlling interests do not represent a significant portion of the 2020 and 2021 Group consolidated financial statements.
Provisions break down as follows:
| 31/12/2020 | Allocations Discount (2) | Reversals | Actuarial gains and losses/ assets ceiling |
Reclassificat ion |
Translation adjustments |
Changes in scope |
31/12/2021 | |||
|---|---|---|---|---|---|---|---|---|---|---|
| In million euros | Used | Not used |
||||||||
| Provisions for dismantling cost (1) |
247.4 | 59.6 | (4.4) | (15.0) | (2.9) | 5.1 | 0.0 | 289.9 | ||
| Provisions for retirement and other benefits |
113.4 | 6.2 | 0.7 | (3.7) | (5.5) | (12.8) | 1.6 | 0.0 | 99.9 | |
| Provisions for risks and litigation |
51.2 | 23.8 | (14.5) | (9.8) | (0.1) | 0.6 | (0.4) | 50.8 | ||
| Provisions for onerous contracts |
19.7 | 2.6 | (1.2) | 0.8 | (0.4) | 21.4 | ||||
| Total | 431.7 | 92.2 | (3.7) | (34.4) | (18.2) | (12.8) | (0.1) | 8.2 | (0.9) | 462.1 |
(1) Increase in the dismantling provision (offset against PP&E) heavily impacted by dependence on the inflation rate.
(2) Including €(5.7) million recognised versus PP&E.
Provisions consist mainly of provisions for dismantling costs regarding advertising assets in respect of Street Furniture and Transport businesses. They are calculated at the end of each accounting period and are based on the assets pool and their unitary dismantling cost (labour, cost of destruction and restoration of ground surfaces). As of 31 December 2021, the average residual contract term used to calculate the provision for dismantling costs is 7.4 years.
Individual rates have been applied to each country since 2019. A weighted average discount rate was calculated based on each country's dismantling provision for the needs of the sensitivity analysis. The sensitivity analysis at 31 December 2021 used this weighted average discount rate for dismantling provisions, calculated as 0.85%, compared to 0.47% rate used at 31 December 2020. Therefore, a 25-basis point reduction in the weighted average discount rate to 0.6% would have generated an additional provision of approximately €5.4 million.
As of 31 December 2021, the release of provisions for dismantling costs amounts to €159.8 million over a time horizon less than or equal to 5 years; it amounts to €84.6 million over a time horizon ranging between 5 and 10 years and to €45.5 million after 10 years.
The Group's defined employee benefit obligations mainly consist of retirement benefits (contractual termination benefits, pensions and other retirement benefits for senior executives of certain Group subsidiaries) and other longterm benefits paid throughout the employee's career, such as long service awards or jubilees.
The Group's retirement benefits mainly involve France, the United Kingdom and Austria.
In France, termination benefits paid at retirement are calculated in accordance with the "Convention Nationale de la Publicité" (Collective Bargaining Agreement for Advertising) for the main entities. A portion of the obligation is covered by contributions made to an external fund by the French companies of JCDecaux Group.
In the United Kingdom, retirement obligations mainly consist of a pension plan previously opened to some employees of JCDecaux UK Ltd. In December 2002, the vesting rights for this plan were frozen.
In Austria, the obligations mainly comprise mandatory termination benefits.
Provisions are calculated according to the following assumptions:
| 2021 | 2020 | |
|---|---|---|
| Discount rate (1) | ||
| Euro Zone | 0.90% | 0.35% |
| United Kingdom | 1.90% | 1.35% |
| Estimated annual rate of increase in future salaries | ||
| Euro Zone | 1.98% | 1.99% |
| United Kingdom (2) | NA | NA |
| Inflation rate | ||
| Euro Zone | 1.80% | 1.50% |
| United Kingdom | 2.85% | 2.35% |
(1) The discount rates for the Euro Zone and the United Kingdom are taken from Iboxx data and are determined based on the yield rate of bonds issued by highly rated companies (rated AA).
(2) As the UK plan was frozen, no salary increase was taken into account.
Retirement benefits and other long-term benefits (before tax) in 2021 break down as follows:
| Retirement benefits | Other long-term | Total | ||
|---|---|---|---|---|
| In million euros | unfunded | funded | benefits | |
| Change in benefit obligation | ||||
| Benefit obligation at the beginning of the year | 31.5 | 142.2 | 8.7 | 182.3 |
| Service cost | 1.8 | 3.9 | 0.5 | 6.2 |
| Interest cost | 0.1 | 1.2 | 0.1 | 1.4 |
| Acquisitions / disposals of plans | 0.0 | 0.0 | 0.0 | 0.0 |
| Modifications / curtailments of plans | (0.8) | (4.5) | (0.1) | (5.4) |
| Actuarial gains/losses (1) | (1.7) | (10.5) | (0.1) | (12.3) |
| Employee contributions | 0.2 | 0.2 | ||
| Benefits paid | (0.4) | (4.0) | (0.9) | (5.2) |
| Translation adjustments | 0.4 | 4.7 | 0.1 | 5.2 |
| Benefit obligation at the end of the year | 30.9 | 133.3 | 8.3 | 172.4 |
| including France | 20.0 | 52.3 | 3.9 | 76.2 |
| including other countries | 10.9 | 80.9 | 4.4 | 96.2 |
| Change in plan assets | ||||
| Assets at the beginning of the year | 69.0 | 69.0 | ||
| Interest income | 0.7 | 0.7 | ||
| Return on plan assets excluding amounts included in interest income | 0.5 | 0.5 | ||
| Acquisitions / disposals of plans | 0.0 | 0.0 | ||
| Employer contributions | 2.5 | 2.5 | ||
| Employee contributions | 0.2 | 0.2 | ||
| Benefits paid | (4.0) | (4.0) | ||
| Translation adjustments | 3.6 | 3.6 | ||
| Assets at the end of the year | 72.6 | 72.6 | ||
| including France | 5.8 | 5.8 | ||
| including other countries (2) | 66.8 | 66.8 | ||
| Provisions | ||||
| Funded status | 30.9 | 60.7 | 8.3 | 99.9 |
| Assets ceiling | 0.0 | |||
| Provisions at the end of the year | 30.9 | 60.7 | 8.3 | 99.9 |
| including France | 20.0 | 46.5 | 3.9 | 70.4 |
| including other countries | 10.9 | 14.2 | 4.4 | 29.5 |
| Pension cost | ||||
| Interest cost | 0.1 | 1.2 | 0.1 | 1.4 |
| Interest income | (0.7) | (0.7) | ||
| Modifications / curtailments of plans | (0.8) | (4.5) | (0.1) | (5.4) |
| Service cost | 1.8 | 3.9 | 1.1 | 6.8 |
| Amortisation of actuarial gains/losses on other long-term benefits | (0.6) | (0.6) | ||
| Charge for the year | 1.1 | (0.2) | 0.5 | 1.4 |
| including France | 0.6 | (1.1) | (0.2) | (0.7) |
| including other countries | 0.5 | 1.0 | 0.7 | 2.2 |
(1) Including €(1.6) million related to experience gains and losses, €(9.9) million related to financial assumptions and €(0.8) million related to demographic assumptions.
(2) Mainly the United Kingdom.
As of 31 December 2021, the Group's benefit obligation amounted to €172.4 million and mainly involved three countries: France (44% of the total benefit obligation), the United Kingdom (36%) and Austria (4%).
The valuations were performed by an independent actuary who also conducted sensitivity tests for each of the plans.
The results of the sensitivity tests demonstrate that:
The variances observed during the sensitivity tests do not call into question the rates taken on for the preparation of the financial statements, deemed to be the rates that are the closest match to the market.
Net movements in provisions for retirement and other benefits are as follows:
| In million euros | 2021 | 2020 |
|---|---|---|
| 1 January | 113.4 | 103.6 |
| Charge for the year | 1.4 | 7.4 |
| Translation adjustments | 1.6 | (1.4) |
| Contributions paid | (2.5) | (4.7) |
| Benefits paid | (1.2) | (2.8) |
| Change in actuarial gains and losses on post-employment benefit plans and assets ceiling | (12.8) | 10.5 |
| Other | 0.0 | 0.7 |
| 31 December | 99.9 | 113.4 |
| Which are recorded: | ||
| - In EBIT | 3.0 | 1.1 |
| - In Financial income (loss) | (0.7) | (1.0) |
| - In Other comprehensive income | 12.8 | (10.5) |
The breakdown of the related plan assets is as follows:
| 31/12/2021 | 31/12/2020 | |||
|---|---|---|---|---|
| In M€ | In % | In M€ | In % | |
| Shares | 29.3 | 40% | 19.1 | 28% |
| Bonds | 17.4 | 24% | 25.6 | 37% |
| Corporate bonds | 10.2 | 14% | 7.2 | 10% |
| Real Estate | 3.2 | 5% | 2.9 | 4% |
| Insurance contracts | 10.4 | 14% | 10.2 | 15% |
| Other | 2.1 | 3% | 3.9 | 6% |
| Total | 72.6 | 100% | 69.0 | 100% |
The plan assets are assets that are listed separately from real estate, which is not listed.
Retirement benefits and other long-term benefits (before tax) in 2020 break down as follows:
| Retirement benefits | Other long | Total | |||
|---|---|---|---|---|---|
| In million euros | unfunded | funded | term benefits | ||
| Change in benefit obligation | |||||
| Benefit obligation at the beginning of the year | 24.8 | 137.9 | 7.8 | 170.5 | |
| Service cost | 1.4 | 3.8 | 1.0 | 6.3 | |
| Interest cost | 0.2 | 1.7 | 0.1 | 2.0 | |
| Acquisitions / disposals of plans | 0.0 | 0.7 | 0.0 | 0.7 | |
| Modifications / curtailments of plans | 0.0 | 0.0 | 0.0 | 0.0 | |
| Actuarial gains/losses (1) | 7.6 | 5.8 | 0.4 | 13.7 | |
| Employee contributions | 0.2 | 0.2 | |||
| Benefits paid | (2.1) | (4.4) | (0.7) | (7.2) | |
| Translation adjustments | (0.4) | (3.5) | (0.0) | (3.9) | |
| Benefit obligation at the end of the year | 31.5 | 142.2 | 8.7 | 182.3 | |
| including France | 21.2 | 59.7 | 4.4 | 85.3 | |
| including other countries | 10.2 | 82.4 | 4.3 | 96.9 | |
| Change in plan assets | |||||
| Assets at the beginning of the year | 66.9 | 66.9 | |||
| Interest income | 1.0 | 1.0 | |||
| Return on plan assets excluding amounts included in interest income | 3.2 | 3.2 | |||
| Acquisitions / disposals of plans | 0.0 | 0.0 | |||
| Employer contributions | 4.7 | 4.7 | |||
| Employee contributions | 0.2 | 0.2 | |||
| Benefits paid | (4.4) | (4.4) | |||
| Translation adjustments | (2.5) | (2.5) | |||
| Assets at the end of the year | 69.0 | 69.0 | |||
| including France | 6.9 | 6.9 | |||
| including other countries (2) | 62.1 | 62.1 | |||
| Provisions | |||||
| Funded status | 31.5 | 73.2 | 8.7 | 113.4 | |
| Assets ceiling | 0.0 | ||||
| Provisions at the end of the year | 31.5 | 73.2 | 8.7 | 113.4 | |
| including France | 21.2 | 52.8 | 4.4 | 78.4 | |
| including other countries | 10.2 | 20.3 | 4.3 | 34.8 | |
| Pension cost | |||||
| Interest cost | 0.2 | 1.7 | 0.1 | 2.0 | |
| Interest income | (1.0) | (1.0) | |||
| Modifications / curtailments of plans | 0.0 | 0.0 | |||
| Service cost | 1.4 | 3.8 | 1.0 | 6.3 | |
| Amortisation of actuarial gains/losses on other long-term benefits | 0.0 | 0.0 | |||
| Charge for the year | 1.6 | 4.6 | 1.2 | 7.4 | |
| including France | 1.1 | 3.5 | 0.1 | 4.8 | |
| including other countries | 0.5 | 1.1 | 1.2 | 2.8 |
(1) Including €1.4 million related to experience gains and losses, €11.8 million related to financial assumptions and €0.5 million related to demographic assumptions.
(2) Mainly the United Kingdom.
Future contributions to pension funds for the year 2022 are estimated at €2.4 million.
The average weighted duration is respectively 11 years and 17 years for the Euro Zone and the United Kingdom.
The JCDecaux UK Ltd pension plan in the United Kingdom has been closed since December 2002. Today only the deferred or retirees remain in this plan. "Funding" evaluations are carried out every three years in order to ascertain the level of the plan's deficit with the agreement of the Trustees and the employer in compliance with regulations. A schedule of contributions is set out up until 2028.
Contributions paid for defined contribution plans represented €27.4 million in 2021 compared to €30.9 million in 2020.
The Group takes part in three multi-employer defined benefit plans covered by assets in Sweden (ITP Plan). An evaluation is performed each year according to local standards. The benefit obligation of the company JCDecaux Sverige AB cannot currently be determined separately. As of 31 December 2020, the three plans were in a situation of profit for a total amount of €3,591.8 million, at the national level, according to local evaluations specific to these commitments. The expense recognised in the consolidated financial statements for these three plans is the same as the contributions paid in 2021, i.e. €0.5 million. The future contributions of the three plans will be steady in 2022.
The Group also takes part in four multi-employer plans in the United States. The Group does not have sufficient information related to the assets and obligations of these plans, the amount of actuarial gains and losses, the service cost and the financial cost, all information necessary for the recognition of these plans as defined benefit plans. Therefore, they are recognised on the same basis as the defined contribution plans. The Group's annual contribution to these multi-employer plans in the United States amounts to €0.5 million.
Provisions for risks and litigation amounted to €50.8 million as of 31 December 2021 compared to €51.2 million as of 31 December 2020.
The JCDecaux Group is party to several legal disputes regarding the terms of implementation and conditions for some of its contracts with concession grantors and the terms and conditions governing supplier relations. In addition, the specific nature of its business (contracts with public authorities) may generate specific contentious procedures. The JCDecaux Group is party to litigation over the awarding or cancellation of street furniture, transport and billboard contracts, as well as tax litigation. In addition, in the context of their businesses, Group companies may be subject to actions/investigations from legal authorities/national competition authorities. Some are ongoing and should not lead to adverse material consequences for the Group.
The Group's Legal Department identifies all risks and litigation (nature, amounts, procedure, risk level), regularly monitors developments and compares this information with that held by the Finance Department. The amount of provisions recognised for risks and litigation is analysed case by case, based on the positions of the plaintiffs, the assessment of the Group's legal advisors, and any decisions handed down by a court.
The provisions for onerous contracts amounted to €21.4 million as of 31 December 2021 compared to €19.7 million as of 31 December 2020. They consist of provisions for onerous contracts recognised during the purchase price allocation exercise of €2.9 million and of provisions recognised following impairment tests of €18.5 million, compared to respectively €3.5 million and €16.2 million as of 31 December 2020.
Subsequent to a risk analysis, the Group deemed that it was not necessary to recognise a provision with respect to some ongoing proceedings regarding litigation or investigations by competition authorities, tax risks or the terms and conditions governing the implementation or awarding of contracts.
Subject to exceptions, no provision for dismantling costs regarding panels in respect of the Billboard business is recognised in the Group financial statements. Indeed, the Group deems that the dismantling obligation of the Billboard business corresponds to a contingent liability, as either the obligation is hardly likely or it cannot be estimated with sufficient reliability due to the uncertainty of the probable dismantling date that influences the discounting impact. Regarding panels that resemble street furniture, large format digital screens and the most spectacular advertising structures, the unitary dismantling cost of which is greater than for dismantling traditional panels, as well as for dismantling programs related to panels for which a high probability of dismantling exists in the short term and at our initiative, the Group had estimated the overall non-discounted dismantling cost at €16.6 million as of 31 December 2021, compared to €12.8 million as of 31 December 2020. In exceptional cases where a short-term dismantling obligation is identified, the Group may recognise a provision for dismantling costs for panels in the Billboard business.
4.14. Financial debt
| 31/12/2021 | 31/12/2020 | ||||||
|---|---|---|---|---|---|---|---|
| In million euros | Current portion |
Non-current portion |
Total | Current portion |
Non-current portion |
Total | |
| Gross financial debt | (1) | 336.9 | 2,116.7 | 2,453.6 | 587.6 | 2,147.4 | 2,735.0 |
| Financial derivatives assets | (0.6) | 0.0 | (0.6) | (1.7) | 0.0 | (1.7) | |
| Financial derivatives liabilities | 4.9 | 0.0 | 4.9 | 4.4 | 0.0 | 4.4 | |
| Hedging financial derivatives instruments | (2) | 4.3 | 0.0 | 4.3 | 2.6 | 0.0 | 2.6 |
| Cash and cash equivalents (*) | 1,493.8 | 0.0 | 1,493.8 | 1,607.8 | 0.0 | 1,607.8 | |
| Bank overdrafts | (6.4) | 0.0 | (6.4) | (14.2) | 0.0 | (14.2) | |
| Net cash | (3) | 1,487.4 | 0.0 | 1,487.4 | 1,593.6 | 0.0 | 1,593.6 |
| Treasury financial assets (*) | (4) | 46.0 | 0.0 | 46.0 | 57.6 | 0.0 | 57.6 |
| Net financial debt (excluding non-controlling interest purchase commitments) |
(5)=(1)+(2)- (3)-(4) |
(1,192.2) | 2,116.7 | 924.5 | (1,061.0) | 2,147.4 | 1,086.3 |
(*) As of 31 December 2021, the Group had €1,493.8 million of cash and cash equivalents (compared to €1,607.8 million as of 31 December 2020) and €46.0 million of treasury financial assets (compared to €57.6 million as of 31 December 2020). Cash and cash equivalents mainly include current account deposits, short-term deposits and money market funds. €5.2 million of the total of cash and cash equivalents was invested in guarantees as of 31 December 2021, compared to €9.4 million as of 31 December 2020.
As of 31 December 2021, treasury financial assets were made up of €46.0 million of short-term liquid investments (compared to €45.6 million as of 31 December 2020). As of 31 December 2020, treasury financial assets also included €12.0 million held in an escrow account by the Group in connection with operational contracts, where the cash belongs to the Group. These financial assets have the main characteristics of cash equivalents but do not strictly comply with all the criteria to be qualified as such according to IAS 7.
The debts on commitments to purchase minority interests are recorded separately and therefore are not included in the financial debt. They are described in Note 4.15 "Debt on commitments to purchase non-controlling interests".
Hedging financial instruments are described in Note 4.17 "Financial instruments".
The reconciliation of the cash flow variance with the change in gross financial debt is detailed in Note 6.4 "Reconciliation between the cash flows and the change in gross financial debt".
The debt analyses presented hereafter are based on the economic financial debt, which is equal to the gross financial debt on the statement of financial position adjusted by the impact of amortised cost:
| 31/12/2021 | 31/12/2020 | |||||
|---|---|---|---|---|---|---|
| Current | Non-current | Current | Non-current | |||
| In million euros | portion | portion | Total | portion | portion | Total |
| Gross financial debt | 336.9 | 2,116.7 | 2,453.6 | 587.6 | 2,147.4 | 2,735.0 |
| Impact of amortised cost | 0.6 | (1.0) | (0.4) | 0.0 | (0.4) | (0.4) |
| Economic financial debt | 337.5 | 2,115.7 | 2,453.2 | 587.6 | 2,147.0 | 2,734.6 |
The economic financial debt breaks down as follows:
| 31/12/2021 | 31/12/2020 | ||||||
|---|---|---|---|---|---|---|---|
| In million euros | Current portion |
Non-current portion |
Total | Current portion |
Non-current portion |
Total | |
| Bonds | 0.0 | 1,949.8 | 1,949.8 | 0.0 | 1,949.8 | 1,949.8 | |
| Commercial Paper (NEU/CP) | 200.0 | 200.0 | 481.0 | 481.0 | |||
| Bank borrowings | 83.9 | 156.3 | 240.1 | 46.6 | 187.7 | 234.3 | |
| Miscellaneous borrowings | 35.3 | 9.7 | 45.0 | 41.6 | 9.4 | 51.0 | |
| Accrued interest | 18.3 | 0.0 | 18.3 | 18.5 | 0.0 | 18.5 | |
| Economic financial debt | 337.5 | 2,115.7 | 2,453.2 | 587.6 | 2,147.0 | 2,734.6 |
As of 31 December 2021, the Group's financial debt mainly included the debt carried by JCDecaux SA:
€599.9 million issued in 2020 maturing in October 2024
€599.9 million issued in 2020 maturing in April 2028
The average effective interest rate of JCDecaux SA's debts was approximately 1.5% for 2021.
JCDecaux SA also holds an undrawn committed revolving credit facility of €825.0 million, which includes a €100 million swingline for same-day short-term drawdowns. The maturity of this facility has been extended to June 30, 2026 following the exercise of a second extension option in July 2021.
If JCDecaux's credit rating goes below Baa3 (Moody's) or BBB- (Standard and Poor's), the revolving credit facility and the €150 million bank loan carried by JCDecaux SA require compliance with the ratio: net financial debt/operating margin strictly below 3.5. As a precaution, the Group has obtained a waiver from the lenders of these two financings for the ratios of 31 December 2020 and 31 December 2021. The next applicable covenant will be based on the financial statements of 31 December 2022 if JCDecaux's credit rating goes below Baa3 (Moody's) or BBB- (Standard and Poor's) at this date.
JCDecaux SA is rated "Baa3" with a stable outlook by Moody's and "BBB-" with a negative outlook by Standard and Poor's (Moody's last rating is dated 18 March 2021, and that of Standard and Poor's 6 December 2021).
The Group's financial debt also includes:
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Less than one year | 337.5 | 587.6 |
| More than one year and less than 5 years | 1,515.8 | 1,547.1 |
| More than 5 years | 599.9 | 600.0 |
| Total | 2,453.2 | 2,734.6 |
| 31/12/2021 | 31/12/2020 | |||
|---|---|---|---|---|
| In M€ | In % | In M€ | In % | |
| Euro | 2,164.7 | 88% | 2,439.9 | 89% |
| Australian dollar | 173.6 | 7% | 177.0 | 6% |
| US dollar | 105.7 | 4% | 89.0 | 3% |
| Chinese yuan | 80.3 | 3% | 71.3 | 3% |
| British pound sterling | 58.2 | 2% | 32.4 | 1% |
| Japanese yen | 23.8 | 1% | 20.8 | 1% |
| South African Rand (1) | (11.3) | 0% | (11.4) | 0% |
| Riyal Saoudi Arabia (1) | (38.0) | (2)% | (18.2) | (1)% |
| Emirati dirham (1) | (38.9) | (2)% | (28.3) | (1)% |
| Hong Kong dollar (1) | (64.8) | (3)% | (52.8) | (2)% |
| Others (1) | (0.1) | (0)% | 14.9 | 1% |
| Total | 2,453.2 | 100% | 2,734.6 | 100% |
(1) Negative amounts correspond to lending positions.
| 31/12/2021 | 31/12/2020 | |||
|---|---|---|---|---|
| In M€ | In % | In M€ | In % | |
| Fixed rate | 2,203.6 | 90% | 2,468.3 | 90% |
| Floating rate | 249.7 | 10% | 266.2 | 10% |
| Total | 2,453.2 | 100% | 2,734.6 | 100% |
The debt on commitments to purchase non-controlling interests amounted to €111.8 million as of 31 December 2021, compared to €111.5 million as of 31 December 2020. It mainly relates to a put option on a company in Europe, exercisable in 2029 and for which the debt is calculated based on an estimation of the present value of the contractual exercise price.
The €0.3 million increase in the debt on commitments to purchase non-controlling interests in 2021 includes the revaluation and discounting impacts of debts on commitments to purchase non-controlling interests, minus the exercise of a put option in the United Kingdom.
The lease liabilities related to lease contracts as of 31 December 2021 are as follows:
| In million euros | 31/12/2020 | Increases | Interest expense |
Decreases (1) Reclassifica | tions | Other decreases (2) |
Changes in scope |
Translation adjustments |
31/12/2021 |
|---|---|---|---|---|---|---|---|---|---|
| Lease liability on advertising space > 12 months |
2,888.2 | 505.3 | 0.0 | (662.9) | (382.9) | 0.1 | 106.7 | 2,454.5 | |
| Lease liability on property > 12 months |
178.6 | 36.6 | 0.0 | (30.8) | (17.0) | 0.3 | 4.7 | 172.4 | |
| Lease liability on vehicles > 12 months |
19.9 | 7.9 | (0.0) | (10.0) | (0.8) | 1.3 | 0.1 | 18.3 | |
| Lease liability others > 12 months |
1.3 | 1.2 | 0.0 | (0.8) | 0.0 | 0.0 | 0.0 | 1.8 | |
| Total lease liabilities - non current |
3,088.0 | 551.0 | 0.0 | 0.0 | (704.5) | (400.7) | 1.8 | 111.4 | 2,647.0 |
| Lease liability on advertising space <= 12 months |
955.2 | 22.0 | 77.8 | (839.7) | 671.2 | (14.4) | 0.0 | 41.4 | 913.4 |
| Lease liability on property <= 12 months |
41.8 | 0.2 | 3.9 | (38.1) | 30.5 | (0.9) | 0.0 | 0.8 | 38.4 |
| Lease liability on vehicles <= 12 months |
10.3 | 0.5 | 0.5 | (11.3) | 10.0 | (0.4) | 0.0 | 0.1 | 9.6 |
| Lease liability others <= 12 months |
0.7 | 0.0 | 0.0 | (0.9) | 0.8 | 0.0 | 0.0 | 0.0 | 0.6 |
| Accrued interest on lease liability <= 12 months |
49.8 | 0.0 | 0.0 | 2.9 | (8.1) | 0.0 | 0.0 | 2.1 | 46.7 |
| Total lease liabilities - current |
1,057.8 | 22.7 | 82.2 | (887.1) | 704.4 | (15.7) | 0.0 | 44.5 | 1,008.8 |
| Total lease liabilities | 4,145.8 | 573.7 | 82.2 | (887.1) | 0.0 | (416.4) | 1.7 | 155.9 | 3,655.8 |
(1) Includes repayment of the principal for €(647.8) million, €(63.7) million in interest payments and rent concessions obtained for €(175.6) million and recorded in P&L according to IFRS 16 expedient.
(2) Includes the decrease of lease liability linked to reliefs treated as a modification of contracts because not falling within the scope of the IFRS 16 expedient (see Note 1.11.4 "IFRS 16 Rent concessions in the context of the Covid-19 epidemic") as well as decreases related to the end of anticipated contracts.
| 31/12/2021 | 31/12/2020 | |
|---|---|---|
| In million euros | In million euros | |
| Less than one year | 1,008.8 | 1,057.8 |
| More than one year and less than 5 years | 1,794.9 | 2,052.2 |
| More than 5 years | 852.1 | 1,035.8 |
| Total lease liabilities discounted | 3,655.8 | 4,145.8 |
| Discount impact | 275.8 | 354.6 |
| Total Non discounted future payments | 3,931.5 | 4,500.4 |
The Group uses financial instruments mainly for foreign exchange rate hedging purposes. The use of these financial instruments mainly concerns JCDecaux SA.
The Group's foreign exchange risk exposure is mainly generated by its business in foreign countries. However, because of its operating structure, the JCDecaux Group is not very vulnerable to currency fluctuations in terms of cash flows, as the subsidiaries in each country do business in their own country and inter-company services and purchases are relatively insignificant. Accordingly, most of the foreign exchange risk stems from the translation of local-currency-denominated accounts to the euro-denominated consolidated accounts.
The foreign exchange risk on flows is mainly related to financial activities (refinancing and recycling of cash with foreign subsidiaries pursuant to the Group's cash centralisation policy). The Group hedges this risk mainly with short-term currency swaps. Consequently, as of 31 December the average exchange rates of the foreign exchange financial instruments are close to the exchange rates at closing.
As a result of inter-company loans and borrowings elimination upon consolidation, only the value of the hedging instruments is presented in the assets or liabilities of the statement of financial position.
As of 31 December 2021, the main foreign exchange rate financial instruments contracted by the Group were as follows (net positions):
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Forward purchases against euro: | ||
| Emirati dirham | 40.1 | 29.3 |
| Hong Kong dollar | 38.0 | 28.4 |
| Saudi riyal | 37.9 | 18.2 |
| Swedish krone | 13.9 | 9.8 |
| Norwegian krone | 12.4 | 7.8 |
| South African rand | 9.9 | 11.3 |
| Others | 10.5 | 4.9 |
| Forward sales against euro: | ||
| Australian dollar | 173.5 | 178.1 |
| British pound sterling | 66.6 | 27.7 |
| American dollar | 62.1 | 69.2 |
| Brazilian real | 12.6 | 10.3 |
| Singaporean dollar | 8.8 | 7.5 |
| Bahrain dinard | 4.3 | 5.0 |
| Others | 9.5 | 10.0 |
| Forward purchase against Chinese yuan: | ||
| Hong Kong dollar | 19.3 | 4.4 |
| Forward purchases against British pound sterling: | ||
| American dollar | 1.0 | 0.5 |
| Chinese yuan | 0.3 | 6.4 |
| Others | 0.3 | 1.5 |
| Forward sale against Thai baht: | ||
| American dollar | 11.4 | 10.3 |
As of 31 December 2021, the foreign exchange financial instruments had a market value of €(4.3) million compared to €(2.6) million as of 31 December 2020.
The ineffective portion of cash flow hedges was zero as of 31 December 2021 and 31 December 2020.
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Trade payables and other operating liabilities | 625.7 | 507.1 |
| Tax and employee-related liabilities | 235.2 | 210.3 |
| Deferred income | 95.9 | 83.1 |
| Payables on the acquisition of assets | 24.8 | 33.4 |
| Other payables | 57.6 | 48.3 |
| Total | 1,039.3 | 882.1 |
Operating liabilities have a maturity of one year or less.
The €157.2 million increase as of 31 December 2021 is mainly due to a currency effect for €27.5 million and to flows from operating activities for €146.6 million, partially offset by the payment on acquisitions of financial assets payables and changes in scope respectively €(12.9) million and €(3.9) million.
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Income tax payable | 22.7 | 19.2 |
| Current tax assets | (27.3) | (38.2) |
| Total | (4.6) | (19.0) |
The €14.4 million decrease in net income tax receivables is mainly due to refunds received in 2021 and the low level of income tax instalments paid in 2021.
Financial assets and liabilities by category as of 31 December 2021 were as follows:
| 31/12/2021 | |||||||
|---|---|---|---|---|---|---|---|
| In million euros | Fair value through income statement |
Fair value through other comprehensive income |
Cash flow hedges and NIH |
Amortised cost |
Total net carrying amount |
Fair value |
|
| Financial derivatives (assets) (1) | 0.6 | 0.6 | 0.6 | ||||
| Other financial assets | (2) | 1.4 | 181.0 | 182.5 | 182.5 | ||
| Trade and other receivables (non- current) |
(3) | 2.0 | 2.0 | 2.0 | |||
| Trade, miscellaneous and other operating receivables (current) |
(3) | 574.7 | 574.7 | 574.7 | |||
| Cash | 689.5 | 689.5 | 689.5 | ||||
| Cash equivalents | (4) | 804.2 | 804.2 | 804.2 | |||
| Treasury financial assets | (1) | 46.0 | 46.0 | 46.0 | |||
| Total financial assets | 1,540.3 | 1.4 | 0.0 | 757.8 | 2,299.5 | 2,299.5 | |
| Financial debt | (5) | (2,453.6) | (2,453.6) | (2,549.9) | |||
| Debt on commitments to purchase non-controlling interests |
(2) | (111.8) | (111.8) | (111.8) | |||
| Financial derivatives (liabilities) |
(1) | (4.9) | (4.9) | (4.9) | |||
| Trade and other payables and other operating liabilities (current) |
(3) | (702.1) | (702.1) | (702.1) | |||
| Other payables (non-current) (3) | (7.7) | (7.7) | (7.7) | ||||
| Bank overdrafts | (6.4) | (6.4) | (6.4) | ||||
| Total financial liabilities | (123.1) | 0.0 | 0.0 | (3,163.4) | (3,286.4) | (3,382.8) |
(1) The fair value measurement of these financial assets and liabilities uses valuation techniques that are based on observable market data (Level 2 category in accordance with IFRS 13 (§93a and b).
(2) The fair value measurement of these financial assets and liabilities uses valuation techniques that are based on non-observable market data (Level 3 category in accordance with IFRS 13 (§93a and b)). The main assumption impacting the fair value of debts on commitments to purchase non-controlling interests is the discount rate, which stood at 0.0% as of 31 December 2021 on the main commitment. An increase of 50 bps in the discount rate would lead to a €4.0 million decrease in the debt on commitments to purchase non-controlling interests.
(3) Employee and tax-related receivables and payables, lease liabilities, down payments, deferred income and prepaid expenses that do not meet the IAS 32 definition of a financial asset or a financial liability, are excluded from these items.
(4) The fair value measurement of these financial assets refers to quoted prices in an active market for €362.5 million (Level 1 category in accordance with IFRS 13 (§93a and b)) and uses valuation techniques that are based on observable market data (Level 2 category in accordance with IFRS 13 (§93a and b)) for €441.7 million.
(5) The fair value measurement of these financial liabilities refers to quoted prices in an active market for bonds whose fair value amounts to €2,046.1 million (Level 1 category in accordance with IFRS 13 (§93a and b)) and uses valuation techniques that are based on observable market data (Level 2 category in accordance with IFRS 13 (§93a and b)) for €503.8 million.
Financial assets and liabilities by category as of 31 December 2020 were as follows:
Consolidated financial statements
| 31/12/2020 | |||||||
|---|---|---|---|---|---|---|---|
| In million euros | Fair value through income statement |
Fair value through other comprehensive income |
Cash flow hedges and NIH |
Amortised cost |
Total net carrying amount |
Fair value |
|
| Financial derivatives (assets) (1) | 1.7 | 1.7 | 1.7 | ||||
| Other financial assets | (2) | 0.9 | 163.9 | 164.8 | 164.8 | ||
| Trade and other receivables (non- current) |
(3) | 1.8 | 1.8 | 1.8 | |||
| Trade, miscellaneous and other operating receivables (current) |
(3) | 537.4 | 537.4 | 537.4 | |||
| Cash | 1,034.2 | 1,034.2 | 1,034.2 | ||||
| Cash equivalents | (4) | 573.7 | 573.7 | 573.7 | |||
| Treasury financial assets | (1) | 57.6 | 57.6 | 57.6 | |||
| Total financial assets | 1,667.2 | 0.9 | 0.0 | 703.0 | 2,371.2 | 2,371.2 | |
| Financial debt | (5) | (2,735.0) | (2,735.0) | (2,846.2) | |||
| Debt on commitments to purchase non-controlling interests |
(2) | (111.5) | (111.5) | (111.5) | |||
| Financial derivatives (liabilities) |
(1) | (4.4) | (4.4) | (4.4) | |||
| Trade and other payables and other operating liabilities (current) |
(3) | (578.7) | (578.7) | (578.7) | |||
| Other payables (non-current) (3) | (8.7) | (8.7) | (8.7) | ||||
| Bank overdrafts | (14.2) | (14.2) | (14.2) | ||||
| Total financial liabilities | (130.1) | 0.0 | 0.0 | (3,322.5) | (3,452.5) | (3,563.7) |
(1) The fair value measurement of these financial assets and liabilities uses valuation techniques that are based on observable market data (Level 2 category in accordance with IFRS 13 (§93a and b) except for the cash held in an escrow account for €12.0 million that is disclosed in the treasury financial assets line and for which the change in fair value refers to quoted prices in an active market (Level 1 category in accordance with IFRS 13 (§93a and b)).
(2) The fair value measurement of these financial assets and liabilities uses valuation techniques that are based on non-observable market data (Level 3 category in accordance with IFRS 13 (§93a and b)). The main assumption impacting the fair value of debts on commitments to purchase non-controlling interests is the discount rate, which stood at 0.13% as of 31 December 2020 on the main commitment. A decrease of 13 bps in the discount rate would lead to a €1.1 million increase in the debt on commitments to purchase non-controlling interests.
(3) Employee and tax-related receivables and payables, lease liabilities, down payments, deferred income and prepaid expenses that do not meet the IAS 32 definition of a financial asset or a financial liability, are excluded from these items.
(4) The fair value measurement of these financial assets refers to quoted prices in an active market for €3.5 million (Level 1 category in accordance with IFRS 13 (§93a and b)) and uses valuation techniques that are based on observable market data (Level 2 category in accordance with IFRS 13 (§93a and b)) for €570.2 million.
(5) The fair value measurement of these financial liabilities refers to quoted prices in an active market for bonds whose fair value amounts to €2,061.0 million (Level 1 category in accordance with IFRS 13 (§93a and b)) and uses valuation techniques that are based on observable market data (Level 2 category in accordance with IFRS 13 (§93a and b)) for €785.2 million.
IFRS revenue amounted to €2,522.5 million in 2021 compared to €2,099.8 million in 2020, an increase of 20.1%.
The contributions of the three business lines - Street Furniture, Transport and Billboard - to 2021 IFRS revenue were €1,390.1 million, €723.9 million and €408.5 million, respectively, (compared to €1,090.8 million, €664.8 million and €344.2 million respectively in 2020).
IFRS advertising revenue stood at €2,211.0 million in 2021 (versus €1,835.6 million in 2020) and the IFRS nonadvertising revenue totalled €311.4 million in 2021 (versus €264.2 million in 2020).
| In million euros | 2021 | 2020 |
|---|---|---|
| Rent and fees Core Business | (283.4) | (46.1) |
| Other net operational expenses | (478.7) | (437.8) |
| Taxes and duties | (6.0) | (6.6) |
| Staff costs | (590.5) | (530.5) |
| Direct operating expenses & Selling, general & administrative expenses (1) | (1,358.5) | (1,021.1) |
| Provision charge net of reversals | 18.7 | 0.7 |
| Depreciation and amortisation net of reversals | (1,095.0) | (1,261.5) |
| Impairment of goodwill | (0.0) | (176.0) |
| Maintenance spare parts | (37.3) | (46.0) |
| Other operating income | 45.3 | 26.2 |
| Other operating expenses | (27.1) | (98.0) |
| Total | (2,453.9) | (2,575.6) |
(1) Including €(893.4) million in "Direct operating expenses" and €(465.1) million in "Selling, general & administrative expenses" in 2021 (compared to €(602.7) million and €(418.3) million in 2020, respectively).
In 2021, rent and fees broke down as follows:
| Non-Core | ||
|---|---|---|
| Rent and fees (1) | Business rents | |
| In million euros | Core Business | (1) & (2) |
| Variable lease expenses | (136.2) | 0.0 |
| Short-term lease expenses | (15.9) | (4.9) |
| Low-value lease expenses | (37.6) | (2.5) |
| Fixed lease expenses on contracts with substantive substitution right clauses | (93.7) | 0.0 |
| Total | (283.4) | (7.4) |
(1) Core business rents are related to location lease contracts for advertising structures and non-core business rents are related to real estate and vehicle rental.
(2) Included in the "Other net operational expenses" line.
Variable expenses are determined based on contractual terms and conditions: rent and fees that fluctuate according to revenue levels are considered as variable expenses. In 2021 and 2020, in accordance with the recommendations of the amendment to IFRS 16, these variable expenses benefit from the favourable effect of the extinguishment of lease liabilities in line with the negotiation of fixed and minimum guaranteed rents for periods ending in maximum prior to June 2022 (for discounts obtained in 2021 and June 2021 for discounts obtained in 2020). This favourable effect represents the majority of the "Gains and losses on lease contracts" item in the 2021 and 2020 statement of cash flows.
Substantial renegotiations of the guaranteed minimums took place in 2021 and 2020. Fiscal year 2021 was marked by a 20.1% increase in revenue compared to 2020 and a 5.7% increase in rent and fees (€(1,136.3) million in 2021 compared to €(1,074.8) million in 2020, including right-of-use amortisation and interest on lease liabilities for contracts restated under IFRS 16). 2020 was marked by a 39.8% decrease in revenue compared to 2019 and a 33.6% decrease in rent and fees.
A simulation of the sensitivity of rent and fees to changes in revenue based on contract terms alone is not relevant because the specific context of the Covid-19 crisis has demonstrated the Group's ability, when faced with a significant decrease in revenue, to negotiate material reductions in fixed and minimum guarantee rent and fees, as well as variable fee rates.
In 2020, rent and fees broke down as follows:
| In million euros | Rent and fees Core Business (1) |
Non-Core Business rents (1) & (2) |
|---|---|---|
| Variable lease expenses | 61.4 | 0.0 |
| Short-term lease expenses | (11.8) | (3.3) |
| Low-value lease expenses | (25.0) | (4.6) |
| Fixed lease expenses on contracts with substantive substitution right clauses | (70.7) | 0.0 |
| Total | (46.1) | (7.9) |
(1) Core business rents are related to location lease contracts for advertising structures and non-core business rents are related to real estate and vehicle rental.
(2) Included in the "Other net operational expenses" line.
This item includes five main cost categories:
Non-Core business rents, which amounted to €(7.4) million in 2021, are fixed expenses and are detailed in the above paragraph.
Non-capitalised research and development costs are included in "Other net operational expenses" and in " Staff costs". They amounted to €8.8 million in 2021, compared to €8.2 million in 2020.
This item includes taxes and similar charges other than income tax. The principal taxes recorded under this item are property taxes.
This item includes salaries, social security contributions, share-based payments and employee benefits, including furniture installation and maintenance staff, research and development personnel, sales team and administrative personnel. The positive impact of state aid related to temporary unemployment is included in this item.
It also covers the expenses associated with profit-sharing and investment plans for French employees and retirement expenses.
| In million euros | 2021 | 2020 |
|---|---|---|
| Compensation and other benefits | (475.5) | (424.9) |
| Social security contributions | (114.0) | (105.5) |
| Share-based payments (1) | (1.0) | (0.0) |
| Total | (590.5) | (530.5) |
(1) Including equity settled share-based payments for €(1.0) million in 2021 compared to €(0.01) million in 2020.
The Group granted a free shares plan in 2021.
Breakdown of the free shares plan:
| 2021 Plan | |
|---|---|
| Grant date | 31/10/2021 |
| Number of beneficiaries | 321 |
| Number of free shares | 1,063,818 |
| Estimated turnover rate (in %) | 3.1 |
| Risk-free rate (in %) | (0.50) |
| Dividend payment rate (in %) (1) | 2.08 |
| Fair value of free share (2) | €20.74 |
(1) Consensus of financial analysts on future dividends (source: Bloomberg).
(2) The fair value does not include the impact of turnover.
At the end of fiscal year 2021, the potential number of free shares amounted to 1,061,685 shares, after the cancellation of 2,133 shares.
Breakdown of stock option plans (1):
| 2017 Plan | 2016 Plan | 2015 Plan | 2014 Plan | |
|---|---|---|---|---|
| Grant date | 13/02/2017 | 17/02/2016 | 16/02/2015 | 17/02/2014 |
| Vesting date | 13/02/2020 | 17/02/2019 | 16/02/2018 | 17/02/2017 |
| Expiry date | 13/02/2024 | 17/02/2023 | 16/02/2022 | 17/02/2021 |
| Number of beneficiaries | 188 | 270 | 173 | 237 |
| Number of options granted | 344,108 | 866,903 | 546,304 | 780,392 |
| Strike price before adjustment (2) | €29.77 | €34.01 | €31.29 | €31.69 |
| Strike price after adjustment (2) | N/A | N/A | €31.12 | €31.51 |
| Repricing - Adjustment of the number of options (2) | N/A | N/A | 3,145 | 3,992 |
| Number of options outstanding at the end of the period | 306,840 | 716,568 | 449,066 | 0 |
(1) The Group has not granted any stock-option plans since 2017.
The adjustment related to the OPAS had no impact on the IFRS 2 "Share-based payment" charge.
(2) Following the simplified public tender offer (OPAS) launched by JCDecaux SA in June 2015 at a unit price of €40, 12,500,000 shares were repurchased on 17 July 2015, and subsequently cancelled. As a result, the number of options previously granted and still outstanding at the date of the OPAS was adjusted by an adjustment coefficient of 1.0056. The exercise price of the options was also adjusted to ensure that the effects of the OPAS on the rights of option holders would be neutral.
Stock option movements during the period and average strike price by category of options:
| PERIOD | 2021 | Average share price at the date of exercise |
Average strike price |
2020 | Average share price at the date of exercise |
Average strike price |
|---|---|---|---|---|---|---|
| Number of options outstanding at the beginning of the period | 2,051,904 | €32.06 | 2,143,905 | €32.08 | ||
| - Options granted during the period | ||||||
| - Options forfeited during the period | 73,740 | €32.23 | 92,001 | €32.48 | ||
| - Options exercised during the period | ||||||
| - Options expired during the period | 505,690 | €31.51 | - | |||
| Number of options outstanding at the end of the period | 1,472,474 | €32.25 | 2,051,904 | €32.06 | ||
| Number of options exercisable at the end of the period | 1,472,474 | €32.25 | 2,051,904 | €32.06 |
The plans were valued using the Black & Scholes model based on the following assumptions:
| Assumptions | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|
| - Price of underlying at grant date | €30.02 | €34.90 | €31.75 | €31.57 |
| - Estimated volatility | 23.38% | 25.56% | 25.51% | 27.46% |
| - Risk-free interest rate | (0.11)% | (0.24)% | (0.03)% | 0.80% |
| - Estimated option life (in years) | 4.5 | 4.5 | 4.5 | 4.5 |
| - Estimated turnover | 4.70% | 4.70% | 4.70% | 4.70% |
| - Dividend payment rate (1) | 2.21% | 1.77% | 1.77% | 1.42% |
| - Fair value of options (2) | €4.32 | €6.09 | €5.51 | €6.42 |
(1) Consensus of financial analysts on future dividends (source: Bloomberg).
(2) The fair value does not include the impact of turnover.
The preferred option for lifespan refers to the period running from the grant date to Senior Management's best estimate of the most likely date of exercise.
As the Group had more extensive historical data for the valuation of the 2014 to 2017 plans, it was able to fine-tune its assumptions for the calculation of volatility. As a result, the first year of listing was not included in the volatility calculation, as this was considered abnormal due primarily to the sharp movements in share price inherent with the IPO and the effect of 11 September 2001.
Furthermore, based on observed behaviours, when the plans were issued the Group considered that the options would be exercised at an average of 4.5 years after the grant date.
Net reversals of provisions increased by €18.0 million and amortisation net of reversals decreased by €166.5 million including €136.9 million of amortisation of right-of-use and €29.7 million of amortisation of PP&E and intangible assets.
In 2021, net reversals of provisions mainly correspond to reversals of provisions for dismantling costs totalling €16.6 million, reversals of provisions for employee benefits for €3.0 million, reversals of provisions for onerous contracts due to the accounting treatment of acquisitions for €0.6 million, allocation of provisions following impairment tests for €(2.0) million and reversals of provisions for risks and charges for €0.5 million.
In 2020, net reversals of provisions mainly corresponded to reversals of provisions for dismantling costs totalling €14.2 million, reversals of provisions for employee benefits for €1.1 million, reversals of provisions for onerous contracts due to the accounting treatment of acquisitions for €0.6 million, allocation of provisions following impairment tests for €(11.2) million and allocation of provisions for risks and charges for €(4.4) million.
In 2021, this item included a net depreciation of €(7.6) million relating to impairment tests carried out, including €(8.0) million of net depreciation on PP&E and intangible assets, €2.4 million in net reversals of right-of-use amortisation and €(2.0) million of net allocations of provisions for onerous contracts.
In 2020, this item included a net depreciation of €(46.1) million relating to impairment tests carried out, including €(36.7) million of net depreciation on PP&E and intangible assets, €1.8 million in net reversals of right-of-use amortisation and €(11.2) million of net allocations of provisions for onerous contracts.
As of 31 December 2021, no impairment of goodwill has been recognized.
As of 31 December 2020, a €(176.0) million goodwill impairment was recorded including €(128.0) million on the Pacific CGU (including €(49.7) million related to the Billboard segment and €(78.3) million related to the Transport segment) and €(48.0) million on the Billboard Rest of the World CGU.
The item comprises the cost of spare parts for street furniture as part of maintenance operations for the advertising network, excluding glass panel replacements and cleaning products, and inventory impairment losses.
Other operating income and expenses break down as follows:
| In million euros | 2021 | 2020 |
|---|---|---|
| Gain on disposals of financial assets and gain on changes in scope | 4.4 | 0.0 |
| Gain on disposals of intangible assets and PP&E | 12.8 | 11.7 |
| Other management income | 3.2 | 4.6 |
| P&L effect following changes on IFRS16 Non Core Business contracts | 1.2 | 0.3 |
| P&L effect following changes on IFRS16 Core Business contracts | 23.6 | 9.7 |
| Other operating income | 45.3 | 26.2 |
| Loss on disposals of financial assets and loss on changes in scope | (0.5) | (46.8) |
| Loss on disposals of intangible assets and PP&E | (4.7) | (2.0) |
| Other management expenses | (21.9) | (48.3) |
| P&L effect following changes on IFRS16 Non Core Business contracts | 0.0 | 0.0 |
| P&L effect following changes on IFRS16 Core Business contracts | 0.0 | (1.0) |
| Other operating expenses | (27.1) | (98.0) |
| Total | 18.2 | (71.8) |
In 2021, gains on disposals of financial assets and gain on changes in scope amounted to a total of €4.4 million. They mainly concerned deconsolidation following the ongoing liquidations of entities in Latin America for €3.7 million.
In 2020, no gains on disposals of financial assets and income from changes in scope were observed.
In 2021, the P&L impact regarding changes in core business leases amounted to €23.6 million. This mainly stemmed from the withdrawal of a contract in China from the scope of IFRS 16, and in France from the early termination of a contract. These impacts amounted to €8.7 million in 2020.
In 2021, the losses on disposals of financial assets and expenses associated with changes in scope were not significant and amounted to €(0.5) million.
In 2020, the losses on disposals of financial assets and expenses associated with changes in scope totalled €(46.8) million and mainly concerned the disposal of Russ Outdoor for €(39.0) million.
In 2021, other management expenses for €(21.9) million mainly included restructuring costs in the amount of €(6.2) million and the payment of a VAT dispute for €(9.0) million, provisioned at the end of December 2020.
In 2020, other management expenses amounting to €(48.3) million mainly included restructuring costs for €(31.8) million related to the Covid-19 situation.
In 2021, the Group benefited from various State aid and government measures totalling €34.6 million (part-time working assistance or other). In 2020, the group benefited from a total amount of €65.6 million in government aid linked to Covid-19.
| In million euros | 2021 | 2020 | |
|---|---|---|---|
| Interest income | 4.0 | 3.0 | |
| Interest expense | (41.7) | (34.1) | |
| Net interest expense | (37.7) | (31.2) | |
| Amortised cost impact | 0.0 | (1.0) | |
| Cost of net financial debt | (1) | (37.7) | (32.1) |
| Net foreign exchange gains (losses) and hedging costs | (1.2) | (3.8) | |
| Net discounting losses | (3.6) | (4.4) | |
| Bank guarantee costs | (1.8) | (1.6) | |
| Charge to provisions for financial risks | (0.2) | (0.8) | |
| Reversal of provisions for financial risks | 0.2 | 0.0 | |
| Provisions for financial risks - Net charge | (0.0) | (0.8) | |
| Income on the sale of financial investments | 0.0 | 0.0 | |
| Expense on the sale of financial investments | (0.2) | 0.0 | |
| Net income (loss) on the sale of financial investments | (0.2) | 0.0 | |
| Other | (0.5) | 0.1 | |
| Other net financial expenses | (2) | (7.2) | (10.5) |
| Net financial income (loss) excluding IFRS16 | (3)=(1)+(2) | (44.9) | (42.6) |
| Interests on IFRS 16 lease liabilities | (82.2) | (118.1) | |
| Net financial income (loss) | (127.1) | (160.7) | |
| Total financial income | 4.2 | 3.0 | |
| Total financial expenses | (131.4) | (163.8) |
The €33.6 million improvement in net financial income was mainly due to the decrease in interest on IFRS 16 lease liabilities. This improvement was partially offset by an increase in the net debt cost related to the full-year effect of the implementation of new financing by JCDecaux SA in 2020, in particular bond issues for €1.2 billion.
| In million euros | 2021 | 2020 |
|---|---|---|
| Current tax | (28.6) | (10.3) |
| Local tax ("CVAE") | (2.5) | (3.8) |
| Other | (26.0) | (6.5) |
| Deferred taxes | 42.2 | 31.5 |
| Total | 13.6 | 21.2 |
In 2021, the effective tax rate before impairment of goodwill and the share of net profit of companies under the equity method was 23.2%, compared to 4.6% in 2020. Excluding the discounting and revaluation impacts of debts on commitments to purchase non-controlling interests, the effective tax rate was 24.0% in 2021 compared to 4.6% in 2020.
| In million euros | 2021 | 2020 |
|---|---|---|
| Intangible assets, PP&E and provisions for onerous contracts | 26.9 | 6.0 |
| Tax losses carried forward | 28.7 | 16.1 |
| Provisions for dismantling costs | 1.4 | 0.9 |
| Provisions for retirement and other benefits | (1.7) | 0.3 |
| IFRS 16 leases | 2.5 | (1.1) |
| Other | (15.7) | 9.4 |
| Total | 42.2 | 31.5 |
| In million euros | 2021 | 2020 |
|---|---|---|
| Consolidated net income | 3.6 | (616.7) |
| Income tax charge | 13.6 | 21.2 |
| Consolidated income before tax | (10.0) | (637.9) |
| Share of net profit of companies under the equity method | (48.6) | 1.3 |
| Impairment of goodwill | 0.0 | 176.0 |
| Taxable dividends received from subsidiaries | 0.4 | 5.7 |
| Other non-taxable income | (21.5) | (18.7) |
| Other non-deductible expenses | 51.4 | 87.8 |
| Net income before tax subject to the standard tax rate | (28.3) | (385.7) |
| Weighted Group tax rate (1) | 62.64% | 27.85% |
| Theoretical tax charge | 17.7 | 107.4 |
| Deferred tax on unrecognised tax losses | (22.1) | (99.1) |
| Capitalisation and use of unrecognised prior year tax losses carried forward | 4.8 | 1.0 |
| Other deferred tax (temporary differences and other restatements) | 17.3 | 15.5 |
| Tax credits | 2.7 | 2.2 |
| Withholding tax | (1.4) | (2.0) |
| Tax on dividends | (0.3) | (0.2) |
| Other | (2.5) | 0.1 |
| Income tax calculated | 16.1 | 25.0 |
| Net Local tax ("CVAE") | (2.5) | (3.8) |
| Income tax recorded | 13.6 | 21.2 |
(1) National average tax rates weighted by taxable income.
In 2021, the share of net profit of associates totalled €16.5 million compared to €(9.5) million in 2020, and the share of net profit from joint ventures totalled €32.1 million in 2021 compared to €8.2 million in 2020.
An impairment charge on associates and on joint ventures was recorded in 2020 for €(4.0) million and €(0.2) million respectively.
The information related to joint ventures and associates is presented in Note 11 "Information on joint ventures" and in Note 12 "Information on associates".
As of 31 December 2021, the Group's payroll comprised 10,200 employees, compared to 9,760 employees as of 31 December 2020. These figures do not include the share of employees from joint ventures representing 521 and 474 employees respectively as of 31 December 2021 and 31 December 2020.
The breakdown of the share of employees for the years 2021 and 2020 is as follows:
| 2021 | 2020 | |
|---|---|---|
| Technical | 5,192 | 5,020 |
| Sales and marketing | 2,457 | 2,351 |
| IT and administration | 1,914 | 1,835 |
| Contract business relations | 462 | 423 |
| Research and development | 175 | 131 |
| Total | 10,200 | 9,760 |
The breakdown of employees of joint ventures for the years 2021 and 2020 is as follows:
| 2021 | 2020 | |
|---|---|---|
| Technical | 244 | 221 |
| Sales and marketing | 157 | 142 |
| IT and administration | 98 | 91 |
| Contract business relations | 22 | 20 |
| Research and development | 0 | 0 |
| Total | 521 | 474 |
The increase in headcount in 2021 is explained by the impact of less short-time working in 2021 than in 2020, partially offset by non-replaced departures, restructuring plans (following the Covid-19 crisis), forced part-time work and other similar mechanisms.
| 2021 | 2020 | |
|---|---|---|
| Weighted average number of shares for the purposes of earnings per share | 212,833,760 | 212,742,395 |
| Weighted average number of stock options potentially convertible | 1,472,474 | 2,051,904 |
| Weighted average number of stock options which would not be exercised at strike price (1) | (1,472,474) | (2,051,904) |
| Weighted average number of shares for the purposes of diluted earnings per share | 212,833,760 | 212,742,395 |
(1) This average number reflects the number of stock options which would not be exercised due to a granted strike price that was higher than the market price.
Earnings per share are calculated based on the weighted average number of outstanding shares (excluding treasury shares). The calculation of diluted earnings per share takes into account the dilutive effect from the exercise of stock options.
In 2021, the amount of the audit fees was as follows:
| Audit of statutory and consolidated accounts and limited audit | 1,915 | 1,676 |
|---|---|---|
| JCDecaux SA and its french subsidiaries (1) | 506 | 522 |
| Other controlled entities (1) | 1,410 | 1,154 |
| Non-audit services (2) | 350 | 124 |
| JCDecaux SA and its french subsidiaries (1) | 93 | 36 |
| Other controlled entities (1) | 257 | 88 |
| Total | 2,265 | 1,800 |
(1) The controlled entities taken into account are fully-consolidated subsidiaries.
(2) The services provided cover the non-audit services required by law and regulations, as well as non-audit services provided at the request of the entity. This concerns the services that fall within the scope of the services usually provided in addition to the statutory audit engagement (drawing-up of specific attestations, performing agreed-upon procedures, establishing acquisition due diligences).
In 2020, the amount of the audit fees was as follows:
| In thousand euros | EY & Other | KPMG Audit |
|---|---|---|
| Audit of statutory and consolidated accounts and limited audit | 1,820 | 1,797 |
| JCDecaux SA and its french subsidiaries (1) | 507 | 520 |
| Other controlled entities (1) | 1,313 | 1,277 |
| Non-audit services (2) | 146 | 136 |
| JCDecaux SA and its french subsidiaries (1) | 75 | 55 |
| Other controlled entities (1) | 71 | 81 |
| Total | 1,966 | 1,933 |
(1) The controlled entities taken into account are fully-consolidated subsidiaries.
(2) The services provided cover the non-audit services required by law and regulations, as well as non-audit services provided at the request of the entity. This concerns the services that fall within the scope of the services usually provided in addition to the statutory audit engagement (drawingup of specific attestations, performing agreed-upon procedures, establishing acquisition due diligences).
In 2021, net cash flows from operating activities totalling €1,001.8 million comprised:
In 2020, net cash flows from operating activities of €888.1 million included the operating cash flows generated by EBIT and other financial income and expenses, adjusted for non-cash items, for a total of €790.4 million, the change in working capital of €237.4 million, the payment of interest on IFRS 16 lease liabilities of €(82.1) million, the payment of other net financial interest of €(17.4) million and the payment of income tax for €(40.3) million.
In 2021, net cash flows from investing activities totalling €(170.1) million comprised:
In 2020, net cash flows from investing activities for €(273.7) million included the cash payments on acquisitions of intangible assets and PP&E net of cash receipts for a total of €(177.0) million, cash receipts on disposals of longterm investments net of cash payments and cash acquired and sold for €0.8 million (including €23.8 million of changes in payables and receivables on financial investments and €10.9 million of net cash acquired and sold) and €(97.6) million of cash payments on acquisitions of other financial assets net of disposals.
In 2021, net cash flows from financing activities totalling €(934.4) million comprised:
repayments of lease liabilities for €(647.8) million,
payment of dividends by the Group's controlled companies to their minority shareholders for €(9.9) million,
In 2020, net cash flows from financing activities amounted to €848.7 million and concerned repayments of lease liabilities for €(533.2) million, payment of dividends for €(7.8) million, cash payments on acquisitions of noncontrolling interests net of cash receipts for €(0.9) million, disposals of treasury financial assets for €24.8 million, net cash flows on the borrowings of controlled entities for €1,365.9 million, net capital increases for €0.9 million and purchases of treasury shares net of disposals for €(1.0) million.
| In million euros | 31/12/2020 | Repayment of long term borrowings |
Increase in long term borrowings |
Translation differences, consolidation scope variations, net impact of IFRS9 and accrued interest variations |
31/12/2021 |
|---|---|---|---|---|---|
| Bonds (amortised cost included) | 1,952.8 | (0.6) | 1,952.2 | ||
| Commercial Paper (NEU/CP) | 481.0 | (1,434.0) | 1,153.0 | 200.0 | |
| Bank borrowings (amortised cost | |||||
| included) | 231.7 | (57.9) | 60.0 | 4.3 | 238.1 |
| Miscellaneous borrowings | 51.0 | (9.8) | 3.1 | 0.7 | 45.0 |
| Accrued interest | 18.5 | (0.2) | 18.3 | ||
| Gross financial debt | 2,735.0 | (1,501.7) | 1,216.1 | 4.2 | 2,453.6 |
The Group is exposed to various financial risks (especially liquidity and financing risks, interest rate risk, foreign exchange rate risk and risks related to financial management, particularly counterparty risk). The Group's objective is to minimise such risks by choosing appropriate financial policies. The Group may nevertheless need to manage residual positions. This strategy is monitored and managed centrally by a dedicated team within the Group Finance Department. Risk management policies and hedging strategies are approved by Group management.
The table below presents the contractual cash flows (interest cash flows and contractual repayments) related to financial liabilities and financial instruments:
| In million euros | Carrying amount |
Contractual cash flows (*) |
2022 | 2023 | 2024 | 2025 | > 2025 |
|---|---|---|---|---|---|---|---|
| Bonds | 1,952.2 | 2,111.0 | 35.2 | 785.2 | 627.7 | 15.8 | 647.1 |
| NEU CP (Commercial Paper) | 200.0 | 200.0 | 200.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Bank borrowings at floating rate | 233.2 | 246.2 | 83.7 | 6.5 | 3.7 | 152.3 | 0.0 |
| Bank borrowings at fixed rate | 4.9 | 5.1 | 2.9 | 1.1 | 0.6 | 0.3 | 0.2 |
| Miscelleanous borrowings | 45.0 | 45.6 | 36.0 | 1.8 | 0.1 | 7.7 | 0.0 |
| Accrued interest | 18.3 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Bank overdrafts | 6.4 | 6.4 | 6.4 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total financial liabilities excluding derivatives | 2,460.0 | 2,614.3 | 364.2 | 794.6 | 632.1 | 176.1 | 647.3 |
| Foreign exchange hedges | (4.3) | (4.3) | (4.3) | 0.0 | 0.0 | 0.0 | 0.0 |
| Total financial instruments (**) | (4.3) | (4.3) | (4.3) | 0.0 | 0.0 | 0.0 | 0.0 |
(*) The interest amounts paid are included in the contractual cash flows for each type of borrowing.
(**) A negative amount represents a cash flow to be paid.
The Group's financing strategy consists of:
As of 31 December 2021, 95% of the Group's financial debt was carried by JCDecaux SA with an average maturity of 3.1 years.
The Group generates significant operating cash flows which allow it to self-finance organic growth. In the Group's opinion, external growth opportunities could lead it to temporarily increase this net debt.
As of 31 December 2021, the Group has €1,539.7 million in cash, cash equivalents and treasury financial assets (see Note 4.10 "Managed Cash") and an undrawn committed revolving credit facility of €825.0 million, which includes a €100 million swingline for same-day short-term drawdowns. The maturity of this credit facility has been extended to June 30, 2026 following the exercise of a second extension option effective July 2021.
JCDecaux SA's financing sources are committed, but some of them require compliance with a ratio if the credit rating goes below Baa3 (Moody's) or BBB_ (Standard and Poor's), for which the calculation is based on the consolidated financial statements.
If JCDecaux's credit rating goes below Baa3 (Moody's) or BBB- (Standard and Poor's), the revolving credit facility and the €150 million bank loan carried by JCDecaux SA require compliance with the ratio: net financial debt/operating margin strictly below 3.5. As a precaution, the Group has obtained a waiver from the lenders of these two financings for the ratios of 31 December 2020 and 31 December 2021. The next applicable covenant will be based on the financial statements of 31 December 2022 if JCDecaux's credit rating goes below Baa3 (Moody's) or BBB- (Standard and Poor's) at that date.
JCDecaux SA is rated "Baa3" with a stable outlook by Moody's and "BBB-" with a negative outlook by Standard and Poor's (Moody's last rating is dated 18 March 2021, and that of Standard and Poor's 6 December 2021).
The Group holds cash in some countries from which funds cannot be immediately repatriated, mainly because of regulatory restrictions. Nevertheless, the Group receives dividends on a regular basis from most of its subsidiaries located in these countries, and the cash is used for local purposes.
The Group is exposed to interest rate fluctuations because of its indebtedness. Given the low interest rate environment over the past several years, the Group is mainly indebted at fixed rates. The breakdown between fixed rate and floating rate is described in Note 4.14 "Financial debt".
The following table breaks down financial assets and liabilities by interest rate maturity as of 31 December 2021:
| 31/12/2021 | |||||
|---|---|---|---|---|---|
| > 1 year | |||||
| In million euros | ≤ 1 year | & ≤ 5 years | > 5 years | Total | |
| JCDecaux SA borrowings | (392.6) | (1,349.9) | (599.9) | (2,342.4) | |
| Other borrowings | (99.0) | (11.8) | (110.8) | ||
| Bank overdrafts | (6.4) | (6.4) | |||
| Financial liabilities | (1) | (498.0) | (1,361.7) | (599.9) | (2,459.6) |
| Cash and cash equivalents | 1,493.8 | 1,493.8 | |||
| Treasury financial assets | 46.0 | 46.0 | |||
| Other financial assets (excluding financial investments) | 17.6 | 154.5 | 8.9 | 181.0 | |
| Financial assets | (2) | 1,557.4 | 154.5 | 8.9 | 1,720.8 |
| Net position | (3)=(1)+(2) | 1,059.4 | (1,207.2) | (591.0) | (738.8) |
For fixed-rate assets and liabilities, the maturity indicated is that of assets and liabilities.
For floating rate assets and liabilities, the rates are adjusted every one, three or six months. The maturity indicated is therefore less than one year regardless of the maturity date.
As of 31 December 2021, 90% of the Group's total economic financial debt, all currencies considered, was on a fixed rate.
Despite its presence in more than 80 countries, the JCDecaux Group is relatively immune to currency fluctuations in terms of cash flows, as subsidiaries in each country do business in their own country and inter-company services and purchases are relatively insignificant.
However, as the Group's presentation currency is the Euro, the Group's consolidated financial statements are affected by the conversion into euros of financial statements denominated in local currencies.
In 2021, net income generated in currencies other than the euro accounted for €(16.9) million of the Group's consolidated net income.
Based on 2021 actual data, the table below details the Group's consolidated net income and reserves exposure to a (10)% change in the foreign exchange rates of each of the most represented currencies in the Group, those being the American dollar, the Australian dollar, the British pound sterling, the UAE dirham, and the Chinese yuan:
| American dollar |
Australian dollar |
British sterling pound |
UAE dirham | Chinese yuan |
|
|---|---|---|---|---|---|
| Impact on consolidated income (in M€) | 2.6 | 3.7 | 2.5 | (2.1) | (2.7) |
| Impact on consolidated reserves | 2.0% | (3.1)% | (0.8)% | (0.1)% | (1.3)% |
As of 31 December 2021, the Group held mainly foreign exchange currency hedges on financial transactions.
As part of the application of its centralised financing strategy, the Group has mainly implemented short-term foreign exchange currency swaps to hedge inter-company loans and borrowings transactions. The Group can decide not to hedge some of the foreign exchange risks generated by inter-company transactions when hedging arrangements are (i) too costly, (ii) not available, or (iii) when loan amounts are too small.
As of 31 December 2021, the Group considers that its earnings and financial position would not be materially affected by currency fluctuations.
As of 31 December 2021, the Group had €1,539.7 million of cash, cash equivalents and treasury financial assets, which include €1,493.8 million of cash and cash equivalents (including €804.2 million in cash equivalents) and €46.0 million of treasury financial assets. €5.2 million of the total cash and cash equivalents are invested in guarantees.
The Group is not subject to any external requirements in terms of equity management.
The Group uses financial instruments solely to hedge foreign exchange risk.
JCDecaux SA is rated "Baa3" with a stable outlook by Moody's and "BBB-" with a negative outlook by Standard & Poor's as of the date of publication of these Notes.
Bonds issued by the Group for a total amount of €1,949.8 million include in their terms and conditions a change of control clause giving bond holders the possibility to request early repayment in the event of a change of control, when accompanied by a downgrade of the credit rating to speculative grade or a credit rating exit.
If JCDecaux's credit rating goes below Baa3 (Moody's) or BBB- (Standard and Poor's), the €825 million revolving credit facility and the €150 million bank loan carried by JCDecaux SA require compliance with the ratio: net financial debt/operating margin strictly below 3.5. As a precaution, the Group has obtained a waiver from the lenders of these two financings for the ratios of 31 December 2020 and 31 December 2021. The next applicable covenant will be based on the financial statements of 31 December 2022 if JCDecaux's credit rating goes below Baa3 (Moody's) or BBB- (Standard and Poor's) at that date.
The Group's other primary financing sources (financing raised by the parent company), together with the main hedging arrangements, are not subject to early termination in the event of a downgrade of the Group's credit rating.
The Group's counterparty risk relates to the investment of the Group's excess cash with its banking partners and to other financial transactions mainly carried out by JCDecaux SA (via unused committed credit facilities and hedging commitments). The Group's policy is to minimise this risk by (i) reducing excess cash within the Group by centralising as much as possible the subsidiaries' available cash at JCDecaux SA level, (ii) obtaining prior authorization from the Group's Finance Department before opening bank accounts, (iii) selecting banks in which JCDecaux SA and its subsidiaries can make deposits (iv) and monitoring this counterparty risk on a regular basis.
The counterparty risk in respect of trade receivables is covered by the necessary provisions if needed. The net book value of trade receivables is detailed in Note 4.9 "Trade and other receivables". The Group maintains a low level of dependence against any particular client, as no single client represents more than 2.7% of the Group's revenue.
The Group's excess cash may be invested in short-term investments or in short-term deposits. In the case of shortterm investments, the investments consist of money market securities. These instruments are invested on a shortterm basis, earn interest at money market benchmark rates, are liquid, and involve only limited counterparty risk.
The Group's policy is not to own shares or negotiable securities other than money market securities and its own shares. Consequently, the Group considers its risk exposure arising from shares and negotiable securities as very low.
The Group ensures the identification, prevention and proper control of the environmental risks to which it is exposed to ensure the sustainable development of its activities.
Sustainable Development has been integrated into the Group's risk mapping since 2009. Environmental risks are thus assessed during the annual review exercise.
In 2021, these environmental risks were not identified as material under the Declaration of Extra-Financial Performance (DPEF).
As JCDecaux operates in the outdoor advertising sector, the environmental risks associated with its street furniture, transport advertising and large-format billboard activities remain limited and, as of 31 December 2021, JCDecaux has not identified any significant risks in environmental matters likely to be provisioned in its accounts.
Established on all continents in more than 80 countries and 3,518 cities with more than 10,000 inhabitants, the Group is likely to see its local activities impacted by the main effects of climate change: increasingly frequent extreme events, a rise in sea levels, but also warmer temperatures and the scarcity of water resources. However, the very broad geographical distribution of its activities greatly limits any risk of significant financial impact.
Reducing the Group's carbon footprint is also an absolute priority and the Group is committed to contributing to collective carbon neutrality with active participation in France from 2021. Commitments made in terms of the transition to a low-carbon economy do not currently have a significant impact on the financial statements.
This work to reduce its energy impact is reflected in concrete actions such as:
In addition to these actions, efforts in terms of Research and Development are also implemented in order to offer our customers solutions in the fight against global warming (vegetated bus shelter, Filtreo®, solar panels, soft mobility, etc.).
In addition to its approach initiated in France in 2021, the Group will define its Group-wide climate strategy in 2022 with objectives aligned with the Paris Agreement, and will assess its financial impacts.
| In million euros | 31/12/2021 | 31/12/2020 | |
|---|---|---|---|
| Commitments given (1) | |||
| Business guarantees | 494.0 | 505.3 | |
| Other guarantees | 38.4 | 37.3 | |
| Pledges, mortgages and collateral | 6.6 | 10.8 | |
| Commitments on securities (put options granted) | 0.5 | 0.5 | |
| Total | 539.5 | 553.9 | |
| Commitments received | |||
| Securities, endorsements and other guarantees | 0.0 | 0.0 | |
| Commitments on securities (call options received) | 0.7 | 0.7 | |
| Credit facilities | 866.0 | 836.4 | |
| Total | 866.7 | 837.2 |
(1) Excluding the commitments under leases signed but not started and excluding the commitments in advertising space contracts provision with substantive substitution rights.
"Business guarantees" are granted mainly by JCDecaux SA and JCDecaux North America Inc. As such, JCDecaux SA and JCDecaux North America Inc. guarantee the performance of contracts entered into by subsidiaries, either directly to third parties, or by counter-guaranteeing guarantees granted by banks or insurance companies.
"Other guarantees" include securities, endorsements and other guarantees such as (i) guarantees covering lease payments, (ii) JCDecaux SA's counter-guarantees of credit facilities granted by banks, and (iii) other commitments such as guarantees covering payments to suppliers.
"Pledges, mortgages and collateral" mainly comprise cash amounts given in guarantee, and the mortgage of land and buildings in Germany.
"Commitments on securities" are granted and received primarily as part of external growth transactions.
Moreover, under certain advertising contracts, JCDecaux North America Inc., directly and indirectly through its subsidiaries and its joint venture partners, have granted, under the relevant agreements, reciprocal put/call options in connection with respective ownership in their shared companies.
Lastly, as part of agreements between shareholders, JCDecaux SA can grant or receive calls in the event that either party's contractual clauses are breached. Under partnership agreements, the Group and its partners benefit from pre-emptive rights and sometimes rights to purchase, tag along or drag along, which the Group does not consider as commitments given or received. Moreover, the Group does not mention the commitments that are subject to exercise conditions, thereby limiting the likelihood of any occurrence.
Credit facilities include the committed revolving credit facility secured by JCDecaux SA for €825.0 million and committed credit facilities granted to subsidiaries for €41.0 million.
Commitments to purchase property, plant and equipment and intangible assets totalled €322.6 million as of 31 December 2021 compared to €368.9 million as of 31 December 2020.
| In million euros | 31/12/2021 | 31/12/2020 |
|---|---|---|
| Lease advertising space | 45.3 | 36.0 |
| Lease property | 0.0 | 0.0 |
| Lease vehicles | 0.0 | 0.0 |
| Other lease | 0.0 | 0.0 |
| Total | 45.3 | 36.0 |
These commitments are recognised as a liability under IFRS 16 at the start date of the lease.
In the Street Furniture and Transport businesses, some contracts include a substantive substitution right on advertising spaces in favour of the contractor. As such, these contracts are considered to be service contracts excluded from the scope of IFRS16 application.
The amount of commitments given on these types of contract and for those beginning after 1 January 2019, totalled €1,327.9 million as of 31 December 2021 compared to €769.6 million as of 31 December 2020 (amounts are neither inflated nor discounted).
The following four categories are considered related party transactions:
Consolidated financial statements
| In million euros | 2021 | 2020 | ||||||
|---|---|---|---|---|---|---|---|---|
| Companies under the EM (1) |
Other shareholders (2) |
Other | Total | Companies under the EM (1) |
Other shareholders (2) |
Other | Total | |
| Statement of financial position | ||||||||
| Assets | ||||||||
| Right-of-use | 0.0 | 81.6 | 81.6 | 14.1 | 78.6 | 92.7 | ||
| Loans and loans to participating interests (*) |
124.1 | 0.0 | 0.0 | 124.1 | 119.0 | 0.0 | 0.0 | 119.1 |
| Other receivables | 24.7 | 0.1 | 1.7 | 26.6 | 30.6 | 0.3 | 2.1 | 33.1 |
| Total Assets | 148.8 | 0.1 | 83.3 | 232.3 | 149.6 | 14.5 | 80.7 | 244.9 |
| Liabilities Financial debts and debt on commitments to purchase non controlling interests (3) |
33.2 | 111.8 | 145.0 | 38.6 | 113.4 | 151.9 | ||
| Other liabilities | 9.0 | 3.7 | 98.0 | 110.7 | 8.3 | 19.6 | 95.2 | 123.1 |
| Total Liabilities | 42.3 | 115.5 | 98.0 | 255.7 | 46.9 | 133.0 | 95.2 | 275.0 |
| Income Statement | ||||||||
| EBIT | ||||||||
| Income | 41.0 | 0.1 | 2.4 | 43.5 | 34.3 | 0.3 | 3.0 | 37.6 |
| Expenses (6) | (8.2) | (3.2) | (18.0) | (29.5) | (9.6) | (4.9) | (11.9) | (26.4) |
| EBIT | 32.8 | (3.1) | (15.6) | 14.1 | 24.7 | (4.6) | (8.9) | 11.2 |
| Net financial income (loss) | ||||||||
| Income | 1.3 | 0.0 | 0.0 | 1.3 | 1.5 | 0.3 | 1.8 | |
| Expenses (4)(5) | (0.2) | (2.3) | (1.1) | (3.6) | (0.2) | (2.4) | (0.8) | (3.4) |
| Net financial income (loss) | 1.1 | (2.3) | (1.1) | (2.3) | 1.3 | (2.1) | (0.8) | (1.6) |
(*) Including accrued interest.
(1) Portion of transactions with joint ventures and with associates not eliminated.
(2) Transactions carried out between JCDecaux SA and its parent JCDecaux Holding and transactions carried out with the significant noncontrolling interests.
(3) The debt on commitments to purchase non-controlling interests amounted to €111.8 million as of 31 December 2021 compared to €111.5 million as of 31 December 2020.
(4) Including €(2.1) million in 2021 and €(2.1) million in 2020 of net expenses of revaluation and discounting on debt on commitments to purchase non- controlling interests.
(5) Including €(1.1) million in 2021 and €(0.9) million in 2020 of interest on IFRS 16 lease liabilities with related parties.
(6) Including €(12.5) million in 2021 and €(11.1) million in 2020 of amortisation depreciation of right-of-use with related parties.
The off-balance sheet commitments from leases with related parties are now, in accordance with IFRS 16, recorded as liabilities in the statement of financial position at their present value. This lease liability with related parties is recognised under "Other liabilities" in the table above and represented €94.1 million as of 31 December 2021 compared to €108.8 million as of 31 December 2020.
As of 31 December 2021, the commitments given as business guarantees with associates totalled €16.5 million.
Compensation due to members of the Executive Board for the years 2021 and 2020 breaks down as follows:
| In million euros | 2021 | 2020 |
|---|---|---|
| Short-term benefits | 7.8 | 4.4 |
| Fringe benefits | 0.3 | 0.3 |
| Directors'fees | 0.0 | 0.0 |
| Life insurance/special pension | 0.1 | 0.1 |
| Share-based payments | 0.0 | 0.0 |
| Total (*) | 8.2 | 4.8 |
(*) Compensation received from associates is excluded.
In addition, should their employment contracts be terminated, two Executive Board members are entitled to receive non-competition compensation over a two-year period equal to 33% of their fixed and variable compensation, calculated on the basis of the average of the twelve months preceding the date of termination of contractual relations.
Post-employment benefits recognised as liabilities in the statement of financial position amounted to €5.2 million as of 31 December 2021 and as of 31 December 2020.
Compensation due to members of the Supervisory Board amounted to €0.4 million for the year 2021.
The following information related to the joint ventures is provided by operating segment pursuant to IFRS 12 "Disclosure of Interests in Other Entities".
The 2021 net income of the joint ventures and reconciliation with the income statement of the consolidated financial statements for 2021 are as follows:
| Street | ||||
|---|---|---|---|---|
| In million euros | Furniture | Transport | Billboard | Total |
| Net Income (1) | 15.5 | 58.3 | 3.0 | 76.9 |
| Impact of application of the holding percentage | (7.7) | (35.4) | (1.7) | (44.8) |
| Impairment of joint ventures | 0.0 | 0.0 | 0.0 | 0.0 |
| Share of net profit of joint ventures | 7.9 | 22.9 | 1.3 | 32.1 |
(1) IFRS data on a 100% basis without any elimination of transactions made between the different activities and without any elimination of transactions made with the controlled entities.
The 2021 revenue for the joint ventures and reconciliation with their contribution in the consolidated adjusted revenue for 2021 are as follows:
| In million euros | Revenue |
|---|---|
| Street Furniture | 103.3 |
| Transport | 352.6 |
| Billboard | 41.2 |
| Total (1) | 497.1 |
| Impact of application of the holding percentage | (261.0) |
| Elimination of the transactions inter-activities & with controlled entities | (2.8) |
| Contribution of the joint ventures in the Consolidated adjusted Revenue | 233.3 |
(1) IFRS data on a 100% basis before elimination of transactions made between the different activities and before elimination of transactions made with the controlled entities.
The other items of the income statement for 2021 that are characteristic of the joint ventures are as follows (1):
| In million euros | Street Furniture | Transport | Billboard |
|---|---|---|---|
| Depreciation, amortisation and provisions (net) | (26.1) | (47.7) | (15.0) |
| Cost of net financial debt | (0.1) | 1.2 | (1.2) |
| Income tax | (7.4) | (17.6) | 2.7 |
(1) IFRS data on a 100% basis without any elimination of transactions made between the different activities and without any elimination of transactions made with the controlled entities.
The 2020 net income of the joint ventures and reconciliation with the income statement of the consolidated financial statements for 2020 are as follows:
| Street | ||||
|---|---|---|---|---|
| In million euros | Furniture | Transport | Billboard | Total |
| Net Income (1) | 5.9 | 46.5 | (30.6) | 21.8 |
| Impact of application of the holding percentage | (3.2) | (31.9) | 21.7 | (13.4) |
| Impairment of joint ventures | (0.2) | 0.0 | (0.2) | |
| Share of net profit of joint ventures | 2.5 | 14.6 | (8.9) | 8.2 |
(1) IFRS data on a 100% basis without any elimination of transactions made between the different activities and without any elimination of transactions made with the controlled entities.
The 2020 revenue of the joint ventures and reconciliation with their contribution in the consolidated adjusted revenue for 2020 are as follows:
| In million euros | Revenue |
|---|---|
| Street Furniture | 82.5 |
| Transport | 326.9 |
| Billboard | 75.3 |
| Total (1) | 484.6 |
| Impact of application of the holding percentage | (263.2) |
| Elimination of the transactions inter-activities & with controlled entities | (1.1) |
| Contribution of the joint ventures in the Consolidated adjusted Revenue | 220.3 |
(1) IFRS data on a 100% basis before elimination of transactions made between the different activities and before elimination of transactions made with the controlled entities.
The other items of the income statement for 2020 that are characteristic of the joint ventures are as follows (1):
| In million euros | Street Furniture | Transport | Billboard |
|---|---|---|---|
| Depreciation, amortisation and provisions (net) | (26.7) | (95.5) | (32.7) |
| Cost of net financial debt | (0.2) | 2.2 | (6.9) |
| Income tax | (4.9) | (20.6) | (0.5) |
(1) IFRS data on a 100% basis without any elimination of transactions made between the different activities and without any elimination of transactions made with the controlled entities.
Other 2021 comprehensive income for the joint ventures and reconciliation with the statement of other comprehensive income of the consolidated financial statements for 2021 are as follows:
| Street | ||||
|---|---|---|---|---|
| In million euros | Furniture | Transport | Billboard | Total |
| Other comprehensive income (1) | 1.3 | 6.0 | (1.0) | 6.3 |
| Impact of application of the holding percentage | (0.6) | (3.6) | 0.5 | (3.7) |
| Translation reserve adjustments on impairment of joint ventures | 0.0 | (0.0) | (0.5) | (0.5) |
| Translation reserve adjustments on goodwill & elimination of shares | 0.3 | 4.7 | 0.0 | 5.0 |
| Share of other comprehensive income of the joint ventures | 0.9 | 7.1 | (0.9) | 7.1 |
(1) IFRS data on a 100% basis without any elimination of transactions made between the different activities and without any elimination of transactions made with the controlled entities.
Other 2020 comprehensive income for the joint ventures and reconciliation with the statement of other comprehensive income of the consolidated financial statements for 2020 are as follows:
| Street | ||||
|---|---|---|---|---|
| In million euros | Furniture | Transport | Billboard | Total |
| Other comprehensive income (1) | (1.7) | (4.8) | 29.2 | 22.8 |
| Impact of application of the holding percentage | 0.8 | 1.9 | (22.3) | (19.5) |
| Translation reserve adjustments on impairment of joint ventures | 0.0 | 0.0 | 1.1 | 1.1 |
| Translation reserve adjustments on goodwill & elimination of shares | (0.3) | (2.6) | 35.7 | 32.8 |
| Share of other comprehensive income of the joint ventures | (1.1) | (5.5) | 43.8 | 37.2 |
(1) IFRS data on a 100% basis without any elimination of transactions made between the different activities and without any elimination of transactions made with the controlled entities.
Net assets (1) as of 31 December 2021 of the joint ventures and reconciliation with the statement of financial position of the consolidated financial statements as of 31 December 2021 are as follows:
| Street | ||||
|---|---|---|---|---|
| In million euros | Furniture | Transport | Billboard | Total |
| Non-current assets | 143.3 | 186.5 | 151.0 | 480.9 |
| Current assets | 93.2 | 230.1 | 21.2 | 344.5 |
| Non-current liabilities | (111.2) | (56.1) | (154.9) | (322.3) |
| Current liabilities | (71.2) | (195.5) | (22.7) | (289.3) |
| Net assets (1) | 54.1 | 165.0 | (5.3) | 213.8 |
| Impact of application of the holding percentage | (25.6) | (83.5) | 1.4 | (107.7) |
| Impairment of joint ventures | (9.6) | (0.1) | (8.4) | (18.1) |
| Goodwill and elimination of shares held by joint ventures | 12.4 | 52.1 | 5.6 | 70.0 |
| Negative Net Equity limitation | 2.1 | 0.0 | 15.4 | 17.5 |
| Investments under the equity method | 33.3 | 133.5 | 8.7 | 175.6 |
(1) IFRS data on a 100% basis without any elimination of transactions made between the different activities and without any elimination of transactions made with the controlled entities.
The items related to the net financial debt as of 31 December 2021 characteristic of the joint ventures are as follows (1):
| In million euros | Street Furniture | Transport | Billboard |
|---|---|---|---|
| Cash and cash equivalents net of bank overdrafts | 7.0 | 114.3 | 3.0 |
| Financial debt (non-current) | (48.4) | (0.7) | (48.2) |
| Financial debt (current) | (1.8) | (1.8) | (2.2) |
(1) IFRS data on a 100% basis without any elimination of transactions made between the different activities and without any elimination of transactions made with the controlled entities.
Net assets (1) as of 31 December 2020 of the joint ventures and reconciliation with the statement of financial position of the consolidated financial statements as of 31 December 2020 are as follows:
Consolidated financial statements
| Street | ||||
|---|---|---|---|---|
| In million euros | Furniture | Transport | Billboard | Total |
| Non-current assets | 131.9 | 268.8 | 137.3 | 537.9 |
| Current assets | 81.7 | 181.5 | 18.3 | 281.5 |
| Non-current liabilities | (107.5) | (83.5) | (157.5) | (348.5) |
| Current liabilities | (58.4) | (213.0) | (22.4) | (293.8) |
| Net assets (1) | 47.7 | 153.7 | (24.3) | 177.1 |
| Impact of application of the holding percentage | (22.1) | (78.7) | 11.0 | (89.8) |
| Impairment of joint ventures | (9.6) | (0.0) | (7.9) | (17.6) |
| Goodwill and elimination of shares held by joint ventures | 12.4 | 47.4 | 5.8 | 65.6 |
| Negative Net Equity limitation | 24.6 | 24.6 | ||
| Investments under the equity method | 28.4 | 122.3 | 9.2 | 159.9 |
(1) IFRS data on a 100% basis without any elimination of transactions made between the different activities and without any elimination of transactions made with the controlled entities.
The items related to the net financial debt as of 31 December 2020 characteristic of the joint ventures are as follows (1):
| In million euros | Street Furniture | Transport | Billboard |
|---|---|---|---|
| Cash and cash equivalents net of bank overdrafts | 3.5 | 84.2 | 4.3 |
| Financial debt (non-current) | (55.1) | (0.9) | (64.6) |
| Financial debt (current) | (0.2) | (1.3) | (1.9) |
(1) IFRS data on a 100% basis without any elimination of transactions made between the different activities and without any elimination of transactions made with the controlled entities.
The dividends received from the joint ventures for the year 2021 break down as follows:
| In million euros | Street Furniture | Transport | Billboard |
|---|---|---|---|
| Dividends received | 5.8 | 19.3 | 0.0 |
The dividends received from the joint ventures for the year 2020 break down as follows:
| In million euros | Street Furniture | Transport | Billboard |
|---|---|---|---|
| Dividends received | 10.5 | 51.1 | 0.1 |
Income statement items characteristic of the significant entity APG|SGA SA and the reconciliation with the income statement of the consolidated financial statements are as follows:
| 2021 | 2020 | |
|---|---|---|
| In million euros | APG SGA SA | APG SGA SA |
| Revenue | 246.2 | 244.7 |
| Net income (1) | 21.7 | 9.9 |
| Impact of application of the holding percentage | (15.2) | (6.9) |
| Impairment of associates | 0.0 | 0.0 |
| Share of net profit of associates | 6.5 | 3.0 |
(1) IFRS data on a 100% basis.
The contribution of other companies in the share of net profit of associates totalled €10.0 million in 2021 and €(12.5) million in 2020.
Statement of financial position items(1) characteristic of the significant entity APG|SGA SA and the reconciliation with the statement of financial position of the consolidated financial statements as of 31 December 2021 and as of 31 December 2020 are as follows:
| 2021 | 2020 |
|---|---|
| In million euros APG SGA SA |
APG SGA SA |
| 392.5 Assets |
469.6 |
| (277.8) Liabilities |
(336.9) |
| Equity 114.7 |
132.7 |
| Impact of application of the holding percentage (80.3) |
(92.9) |
| Impairment of associates 0.0 |
0.0 |
| Goodwill 82.9 |
82.9 |
| Investments in associates 117.3 |
122.7 |
(1) IFRS data on a 100% basis.
The contribution of other companies in investments in associates in the statement of financial position totalled €121.5 million as of 31 December 2021 and €109.9 million as of 31 December 2020.
The valuation of 30% of APG|SGA SA at the 30 December 2021 share price amounts to €173.4 million.
The dividends received from associates for the fiscal years 2021 and 2020 break down as follows:
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| APG SGA SA | Other | Total | APG SGA SA | Other | Total | |
| In million euros | companies | companies | ||||
| Dividends received | 0.0 | 3.6 | 3.6 | 0.0 | 3.1 | 3.1 |
As of 31 December 2021, JCDecaux Holding holds 64.67% of the share capital of JCDecaux SA.
| COMPANIES | COUNTRY | % INTEREST | CONSOL. METHOD |
% CONTROL* |
|
|---|---|---|---|---|---|
| STREET FURNITURE | |||||
| JCDecaux SA | France | 100.00 | F | 100.00 | |
| JCDecaux FRANCE | (1) | France | 100.00 | F | 100.00 |
| SOPACT | France | 100.00 | F | 100.00 | |
| SOMUPI | France | 66.00 | F | 66.00 | |
| JCDecaux ASIE HOLDING | France | 100.00 | F | 100.00 | |
| JCDecaux EUROPE HOLDING | France | 100.00 | F | 100.00 | |
| JCDecaux AMERIQUES HOLDING | France | 100.00 | F | 100.00 | |
| CYCLOCITY | France | 100.00 | F | 100.00 | |
| JCDecaux AFRIQUE HOLDING | France | 100.00 | F | 100.00 | |
| JCDecaux BOLLORE HOLDING | France | 50.00 | E* | 50.00 | |
| SOCIETE FERMIERE DES COLONNES MORRIS | France | 100.00 | F | 100.00 | |
| SOCIETE INFORMATION COMMUNICATION MOBILITE - SICM |
France | 100.00 | F | 100.00 | |
| JCDECAUX MOBILITE AIX-MARSEILLE | France | 100.00 | F | 100.00 | |
| JCDECAUX SUPPLY CHAIN | France | 100.00 | F | 100.00 | |
| SOCIETE HAVRAISE DE MOBILIER URBAIN | France | 100.00 | F | 100.00 | |
| SOCIETE EURO METROPOLITAINE DE MOBILIER URBAIN |
France | 100.00 | F | 100.00 | |
| SOCIETE DE MOBILIER URBAIN DE CAGNES SUR MER |
France | 100.00 | F | 100.00 | |
| ABRI SERVICES MEDIA SAS | (17) | France | 100.00 | F | 100.00 |
| ABRI SERVICES PAYS DE LOIRE | (17) | France | 100.00 | F | 100.00 |
| ABRI SERVICES BRETAGNE | (17) | France | 100.00 | F | 100.00 |
| ABRI SERVICES DEVELOPPEMENT | (17) | France | 100.00 | F | 100.00 |
| ABRI SERVICES NOUVELLE AQUITAINE | (17) | France | 100.00 | F | 100.00 |
| WALL GmbH | (1) | Germany | 100.00 | F | 100.00 |
| DSM DECAUX GmbH | Germany | 50.00 | E* | 50.00 | |
| STADTREKLAME NÜRNBERG GmbH | Germany | 35.00 | E | 35.00 | |
| DIE DRAUSSENWERBER GmbH | Germany | 100.00 | F | 100.00 | |
| SKY HIGH TG GmbH | Germany | 100.00 | F | 100.00 | |
| REMSCHEIDER GESELLSCHAFT FÜR | Germany | 50.00 | E* | 50.00 | |
| STADTVERKEHRSANLAGEN GbR. JCDecaux ARGENTINA S.A. |
(25) | Argentina | 100.00 | F | 100.00 |
| JCDecaux STREET FURNITURE Pty Ltd | Australia | 100.00 | F | 100.00 | |
| Australia | 100.00 | F | 100.00 | ||
| JCDecaux AUSTRALIA Pty Ltd | Australia | 100.00 | F | 100.00 | |
| ADBOOTH Pty Ltd | Australia | 100.00 | F | 100.00 | |
| JCDecaux CITYCYCLE AUSTRALIA Pty Ltd JCDECAUX AUSTRALIA UNIT TRUST |
Australia | 100.00 | F | 100.00 | |
| ARGE AUTOBAHNWERBUNG GmbH | Austria | 67.00 | F | 100.00 | |
| DIGITAL OUT OF HOME OO GmbH | Austria | 33.50 | E* | 50.00 | |
| JCDecaux STADMOBILIAR AZ | Azerbaijan | 100.00 | F | 100.00 | |
| JCDecaux AZERBAIJAN LLC | Azerbaijan | 50.00 | E* | 50.00 | |
| JCDecaux STREET FURNITURE BELGIUM | (1) | Belgium | 100.00 | F | 100.00 |
| JCDecaux MALLS | Belgium | 73.36 | F | 73.36 | |
| JCDecaux DO BRASIL LTDA | Brazil | 100.00 | F | 100.00 | |
| JCDecaux SALVADOR MOBILIARIO URBANO LTDA | Brazil | 100.00 | F | 100.00 | |
| JCDecaux LATAM SERVIÇOS DE MANAGEMENT | |||||
| LTDA | Brazil | 100.00 | F | 100.00 |
| COMPANIES | COUNTRY | % INTEREST | CONSOL. METHOD |
% CONTROL* |
|
|---|---|---|---|---|---|
| CONCESSIONARIA A HORA DE SÃO PAULO LTDA | Brazil | 100.00 | F | 86.67 | |
| CEMUSA BRASILIA S.A. | Brazil | 100.00 | F | 100.00 | |
| CEMUSA AMAZONIA Ltda | Brazil | 100.00 | F | 100.00 | |
| CEMUSA RIO S.A. | Brazil | 100.00 | F | 100.00 | |
| CEMUSA SALVADOR MOBILIARIO URBANO LTDA | Brazil | 100.00 | F | 100.00 | |
| WALL SOFIA EOOD | Bulgaria | 50.00 | E* | 50.00 | |
| OUTFRONT JCDecaux STREET FURNITURE CANADA, Ltd |
Canada | 50.00 | E* | 50.00 | |
| JCDecaux COMUNICACION EXTERIOR CHILE S.A. | (1) | Chile | 100.00 | F | 100.00 |
| JCDecaux PEARL&DEAN OUTDOOR ADVERTISING (CHINA) Co. Ltd |
China | 100.00 | F | 100.00 | |
| BEIJING PRESS JCDecaux MEDIA ADVERTISING Co. Ltd |
China | 50.00 | E* | 50.00 | |
| NINGBO JCDecaux Pearl &Dean ADVERTISING Co. Ltd |
China | 100.00 | F | 100.00 | |
| JCDecaux CITYSCAPE HONG KONG Ltd | China | 100.00 | F | 100.00 | |
| JCDecaux CITYSCAPE Ltd | China | 100.00 | F | 100.00 | |
| JCDecaux MACAU | (1) | China | 80.00 | F | 80.00 |
| CITY LEAD DEVELOPMENTS. Ltd | (10) | China | 23.00 | E | 23.00 |
| EVER HARMONIC GLOBAL. Ltd | (11) & (21) | China | 20.50 | E | 23.00 |
| CLEAR MEDIA LIMITED | (12) & (21) | China | 20.50 | E | 23.00 |
| EQUIPAMIENTOS URBANOS NACIONALES DE COLOMBIA SAS |
(1) | Colombia | 75.00 | F | 75.00 |
| LLEGA S.A.S. | Colombia | 75.00 | F | 100.00 | |
| JCDecaux KOREA Inc. | South Korea | 80.00 | F | 80.00 | |
| JCDECAUX TOP MEDIA COSTA RICA, SA. | (1) | Costa Rica | 76.16 | F | 100.00 |
| JCDecaux COTE d'IVOIRE | Ivory Coast | 50.00 | E* | 50.00 | |
| AFA JCDecaux A/S | (1) | Denmark | 50.00 | F | 50.00 |
| JCDecaux STREET FURNITURE FZ LLC | United Arab Emirates |
100.00 | F | 100.00 | |
| JCDecaux DXB MEDIA FZ LLC | United Arab Emirates |
75.00 | F | 75.00 | |
| JCDecaux ECUADOR SA. | Ecuador | 100.00 | F | 100.00 | |
| JCDecaux ESPANA SLU | (1) | Spain | 100.00 | F | 100.00 |
| JCDecaux ATLANTIS SA | Spain | 85.00 | F | 85.00 | |
| JCDecaux LATIN AMERICA INVESTMENTS HOLDING S.L. |
Spain | 100.00 | F | 100.00 | |
| CORPORACION AMERICANA DE EQUIPAMIENTOS URBANOS SL. |
Spain | 100.00 | F | 100.00 | |
| CORPORACION EUROPEA DE MOBILIARIO URBANO S.A. |
(1) | Spain | 100.00 | F | 100.00 |
| JCDecaux EESTI OU | Estonia | 100.00 | F | 100.00 | |
| JCDecaux SAN FRANCISCO, LLC | United States | 100.00 | F | 100.00 | |
| JCDecaux MALLSCAPE, LLC | United States | 100.00 | F | 100.00 | |
| JCDecaux CHICAGO, LLC | United States | 100.00 | F | 100.00 | |
| OUTFRONT DECAUX STREET FURNITURE, LLC | United States | 50.00 | E* | 50.00 | |
| JCDecaux NORTH AMERICA, Inc. | United States | 100.00 | F | 100.00 | |
| JCDecaux BOSTON, Inc. | United States | 100.00 | F | 100.00 |
| COMPANIES | COUNTRY | % INTEREST | CONSOL. METHOD |
% CONTROL* |
|
|---|---|---|---|---|---|
| JCDecaux STREET FURNITURE, Inc. | United States | 100.00 | F | 100.00 | |
| JCDecaux STREET FURNITURE GREATER BOSTON, LLC | United States | 100.00 | F | 100.00 | |
| JCDecaux STREET FURNITURE NEW YORK, LLC | United States | 100.00 | F | 100.00 | |
| JCDecaux FINLAND Oy | (1) | Finland | 100.00 | F | 100.00 |
| JCDecaux GABON | Gabon | 40.00 | E* | 40.00 | |
| JCDecaux TOP MEDIA GUATEMALA, SA (previously JCDecaux GUATEMALA, S.A.) |
Guatemala | 76.16 | F | 100.00 | |
| VBM VAROSBUTOR ES MEDIA Kft. | Hungary | 67.00 | F | 100.00 | |
| JCDecaux HUNGARY Zrt | (1) | Hungary | 67.00 | F | 100.00 |
| JCDecaux ADVERTISING INDIA PVT Ltd | (1) | India | 100.00 | F | 100.00 |
| JCDecaux ISRAEL Ltd | Israel | 92.00 | F | 92.00 | |
| MCDECAUX Inc. | (1) | Japan | 85.00 | F | 85.00 |
| CYCLOCITY Inc. | Japan | 100.00 | F | 100.00 | |
| RTS DECAUX JSC | Kazakhstan | 50.00 | F | 50.00 | |
| JCDecaux LATVIJA SIA | Latvia | 100.00 | F | 100.00 | |
| JCDecaux LIETUVA UAB | Lithuania | 100.00 | F | 100.00 | |
| JCDecaux LUXEMBOURG SA | (1) | Luxembourg | 100.00 | F | 100.00 |
| JCDecaux MONGOLIA LLC | Mongolia | 51.00 | F | 51.00 | |
| EQUIPAMIENTOS URBANOS DE MEXICO, S.A. DE C.V. | Mexico | 100.00 | F | 100.00 | |
| SERVICIOS DE COMERCIALIZACION DE PUBLICIDAD, S.A. DE C.V. |
Mexico | 100.00 | F | 100.00 | |
| SERVICIO Y TECNOLOGIA ESPECIALIZADA, S.A. DE C.V. | Mexico | 60.00 | F | 100.00 | |
| MEDIOS DE PUBLICIDAD S.A. DE C.V. | Mexico | 60.00 | F | 100.00 | |
| EQUIPAMIENTOS URBANOS DE LA PENINSULA, S.A. DE C.V. |
(16) | Mexico | 60.00 | F | 100.00 |
| JCDecaux OUT OF HOME MEXICO SA de CV | Mexico | 60.00 | F | 60.00 | |
| ESCATO URBANO, S.A. DE C.V. | Mexico | 60.00 | F | 100.00 | |
| FMIDecaux Co., Ltd. | Myanmar | 60.00 | F | 60.00 | |
| JCDecaux OMAN | (1) & (5) | Oman | 100.00 | F | 100.00 |
| JCDecaux UZ | Uzbekistan | 72.26 | F | 72.26 | |
| JCDecaux PANAMA, S.A. | Panama | 76.16 | F | 100.00 | |
| JCDecaux CENTRAL AMERICA HOLDING S.A. | Panama | 100.00 | F | 100.00 | |
| JCDecaux Top Media SA | Panama | 76.16 | F | 76.16 | |
| JCDecaux TOP MEDIA CORPORATIVO, S.A | Panama | 76.16 | F | 100.00 | |
| FUTURAD, S.A | Panama | 11.61 | E | 15.25 | |
| JCDecaux NEDERLAND BV | The | 100.00 | F | 100.00 | |
| JCDecaux PORTUGAL - MOBILIARIO URBANO Lda | Netherlands | F | |||
| Portugal | 100.00 | 100.00 | |||
| PURBE PUBLICIDADE URBANA & GESTAO Lda | Portugal | 100.00 | F | 100.00 | |
| ELAN DECAUX W.L.L JCDecaux DOMINICANA, SAS. |
(1) | Qatar Dominican |
50.00 100.00 |
E* F |
49.00 100.00 |
| Rep. | |||||
| JCDecaux MESTSKY MOBILIAR Spol Sro | (1) | Czech Rep. | 100.00 | F | 100.00 |
| RENCAR MEDIA Spol Sro | Czech Rep. | 46.90 | F | 100.00 | |
| CLV CR Spol Sro | (19) | Czech Rep. | 46.90 | F | 100.00 |
| JCDecaux UK Ltd | (1) | United Kingdom |
100.00 | F | 100.00 |
| JCDecaux SMALL CELLS Ltd | (15) | United Kingdom |
100.00 | F | 100.00 |
| IN FOCUS PUBLIC NETWORKS LIMITED | United Kingdom |
100.00 | F | 100.00 | |
| VIOOH LIMITED | (1) | United Kingdom |
93.50 | F | 93.50 |
| COMPANIES | COUNTRY | % INTEREST | CONSOL. METHOD |
% CONTROL* |
|
|---|---|---|---|---|---|
| JCDecaux EL SALVADOR, S.A. DE C.V. | Salvador | 76.16 | F | 100.00 | |
| JCDecaux SINGAPORE Pte Ltd | Singapore | 100.00 | F | 100.00 | |
| JCDecaux SLOVAKIA Sro | Slovakia | 100.00 | F | 100.00 | |
| JCDecaux SVERIGE AB | Sweden | 100.00 | F | 100.00 | |
| OUTDOOR AB | Sweden | 48.50 | E* | 48.50 | |
| JCDecaux SVERIGE FORSALJNINGSAKTIEBOLAG | Sweden | 100.00 | F | 100.00 | |
| JCDecaux CORPORATE SERVICES GmbH | Switzerland | 100.00 | F | 100.00 | |
| JCDecaux URUGUAY | (6) | Uruguay | 100.00 | F | 100.00 |
| JCDecaux URUGUAY SA | (18) | Uruguay | 100.00 | F | 100.00 |
| JCDecaux OOH URUGUAY SA | Uruguay | 100.00 | F | 100.00 | |
| PUBLIBUS SA | Uruguay | 100.00 | F | 100.00 | |
| TRANSPORT | |||||
| MEDIA AEROPORTS DE PARIS | France | 50.00 | E* | 50.00 | |
| METROBUS | France | 33.00 | E | 33.00 | |
| JCDecaux SPG OUTDOOR ADVERTISING (PTY) LTD | South Africa | 35.00 | E* | 50.00 | |
| JCDecaux ALGERIE SARL | (25) | Algeria | 80.00 | F | 80.00 |
| JCDecaux AIRPORT ALGER EURL | (25) | Algeria | 80.00 | F | 100.00 |
| JCDecaux AIRPORT CENTRE SARL | (25) | Algeria | 49.00 | E | 49.00 |
| MEDIA FRANKFURT GmbH | Germany | 39.00 | E* | 39.00 | |
| JCDecaux AIRPORT MEDIA GmbH | Germany | 100.00 | F | 100.00 | |
| JCDecaux ATA SAUDI LLC | Saudi Arabia | 60.00 | F | 60.00 | |
| BUSPAK ADVERTISING GROUP PTY LTD | Australia | 100.00 | F | 100.00 | |
| GSP PRINT PTY LTD | Australia | 100.00 | F | 100.00 | |
| INFOSCREEN AUSTRIA GmbH | Austria | 67.00 | F | 100.00 | |
| JCD BAHRAIN SPC | Bahrain | 100.00 | F | 100.00 | |
| CEMUSA DO BRASIL LTDA | Brazil | 100.00 | F | 100.00 | |
| JCDecaux MIDIA AEROPORTOS LTDA | Brazil | 100.00 | F | 100.00 | |
| JCDecaux CAMEROUN | Cameroon | 50.00 | E* | 50.00 | |
| JCDecaux CHILE SA | Chile | 100.00 | F | 100.00 | |
| JCDecaux MOMENTUM SHANGHAI AIRPORT ADVERTISING Co. Ltd |
China | 35.00 | E* | 35.00 | |
| JCDecaux ADVERTISING (BEIJING) Co. Ltd | China | 100.00 | F | 100.00 | |
| BEIJING TOP RESULT METRO Advertising. Co. Ltd | China | 33.00 | E | 33.00 | |
| JCDecaux ADVERTISING (SHANGHAI) Co. Ltd | China | 100.00 | F | 100.00 | |
| CHONGQING MPI PUBLIC TRANSPORTATION ADVERTISING Co. Ltd |
China | 60.00 | F | 60.00 | |
| CHENGDU MPI PUBLIC TRANSPORTATION Advertising. Co. Ltd |
China | 100.00 | F | 100.00 | |
| SHANGHAI SHENTONG JCDecaux METRO ADVERTISING Co. Ltd |
China | 60.00 | E* | 51.00 | |
| NANJING METRO JCDecaux ADVERTISING Co., Ltd | China | 100.00 | F | 100.00 | |
| JCDecaux ADVERTISING CHONGQING Co., Ltd | China | 80.00 | F | 80.00 | |
| SUZHOU JCDecaux METRO ADVERTISING Co.Ltd | China | 80.00 | F | 65.00 | |
| NANJING JCDecaux BUS ADVERTISING Co., Ltd | China | 100.00 | F | 100.00 | |
| GUANGZHOU METRO JCDecaux ADVERTISING Co., Ltd |
China | 49.00 | E* | 49.00 |
| COMPANIES | COUNTRY | % INTEREST CONSOL. | METHOD | % CONTROL* |
|
|---|---|---|---|---|---|
| GUANGZHOU JCDECAUX AEROTROPOLIS ADVERTISING Co.,Ltd |
China | 100.00 | F | 100.00 | |
| TIANJIN METRO JCDecaux ADVERTISING Co., Ltd | (13) | China | 60.00 | E* | 60.00 |
| VIOOH CHINA LIMITED | China | 93.50 | F | 100.00 | |
| NANJING JCDECAUX METRO VIOOH MEDIA TECHNOLOGY Co., Ltd |
China | 100.00 | F | 100.00 | |
| WUHAN JCDECAUX BUS ADVERTISING Co., Ltd | (3) | China | 65.00 | F | 65.00 |
| JCDecaux PEARL & DEAN Ltd | China | 100.00 | F | 100.00 | |
| JCDecaux INNOVATE Ltd | China | 100.00 | F | 100.00 | |
| MEDIA PRODUCTION Ltd | China | 100.00 | F | 100.00 | |
| JCDecaux CHINA HOLDING Ltd | China | 100.00 | F | 100.00 | |
| TOP RESULT PROMOTION Ltd | China | 100.00 | F | 100.00 | |
| MEDIA PARTNERS INTERNATIONAL Ltd | China | 100.00 | F | 100.00 | |
| JCDecaux DIGITAL VISION (HK) Ltd. | China | 100.00 | F | 100.00 | |
| VIOOH (HK) LIMITED | China | 93.50 | F | 100.00 | |
| CNDECAUX AIRPORT MEDIA Co. Ltd | China | 30.00 | E | 30.00 | |
| JCDecaux DICON FZCO | United Arab Emirates |
75.00 | F | 75.00 | |
| JCDecaux MIDDLE EAST FZ-LLC | United Arab Emirates |
100.00 | F | 100.00 | |
| JCDecaux OUT OF HOME FZ-LLC (ABU DHABI) | United Arab Emirates |
55.00 | F | 55.00 | |
| JCDecaux AIRPORT, Inc. | United States | 100.00 | F | 100.00 | |
| JOINT VENTURE FOR THE OPERATION OF THE ADVERTISING CONCESSION AT LAWA, LLC |
(2) | United States | 92.50 | F | 92.50 |
| MIAMI AIRPORT CONCESSION, LLC | United States | 50.00 | E* | 50.00 | |
| JCDecaux AIRPORT CHICAGO, LLC | United States | 100.00 | F | 100.00 | |
| THE JOINT VENTURE FOR THE OPERATION OF THE ADVERTISING CONCESSION AT HOUSTON AIRPORTS, LLC |
United States | 99.00 | F | 99.00 | |
| JCDecaux AIRPORT BOSTON, LLC | (22) | United States | 100.00 | F | 100.00 |
| JCDecaux AIRPORT DALLAS FORT WORTH, LLC | United States | 97.50 | F | 97.50 | |
| IGPDECAUX Spa | (1) & (13) | Italy | 60.00 | E* | 60.00 |
| JCDecaux NORGE AS | (1) | Norway | 97.69 | F | 100.00 |
| CITY BUS TOP, S.A. | Panama | 60.93 | F | 80.00 | |
| PUBLICIDAD AEROPUERTO DE TOCUMEN S.A. | Panama | 76.16 | F | 100.00 | |
| JCDECAUX PARAGUAY SA | Paraguay | 70.00 | F | 70.00 | |
| JCDecaux PERU SAC | (1) | Peru | 100.00 | F | 100.00 |
| JCDecaux AIRPORT POLSKA Sp zoo | Poland | 100.00 | F | 100.00 | |
| JCDecaux AIRPORT PORTUGAL SA | Portugal | 85.00 | F | 85.00 | |
| RENCAR PRAHA AS | Czech Rep. | 46.90 | F | 70.00 | |
| JCDecaux ASIA SINGAPORE Pte Ltd | Singapore | 100.00 | F | 100.00 | |
| JCDecaux OUT OF HOME ADVERTISING Pte Ltd | Singapore | 100.00 | F | 100.00 | |
| JCDecaux THAILAND Co., Ltd | Thailand | 98.00 | F | 49.50 | |
| BILLBOARD | |||||
| JCDecaux SOUTH AFRICA HOLDINGS (PROPRIETARY) LIMITED |
South Africa | 100.00 | F | 100.00 | |
| JCDecaux SOUTH AFRICA OUTDOOR ADVERTISING (PROPRIETARY) LIMITED |
South Africa | 49.00 | F | 70.00 | |
| JCDecaux SUB-SAHARAN AFRICA (Pty) Ltd | South Africa | 78.15 | F | 100.00 |
| COMPANIES | COUNTRY | % INTEREST | CONSOL. METHOD |
% CONTROL* |
|
|---|---|---|---|---|---|
| MERAFE RAIL | South Africa | 78.15 | F | 100.00 | |
| MERAFE OUTDOOR | South Africa | 78.15 | F | 100.00 | |
| CORPCOM OUTDOOR | South Africa | 78.15 | F | 100.00 | |
| SUBURBAN INDUSTRIAL SIGN DESIGN | South Africa | 78.15 | F | 100.00 | |
| RENT A SIGN LEBOWA | South Africa | 39.08 | E* | 50.00 | |
| JCDecaux SOUTH AFRICA (PTY) Ltd | South Africa | 70.00 | F | 100.00 | |
| OUTDOOR Co (Pty) Ltd | South Africa | 70.00 | F | 100.00 | |
| BDEYE DESIGNS (Pty) Ltd | South Africa | 70.00 | F | 100.00 | |
| KCF INVESTMENTS (Pty) Ltd | South Africa | 70.00 | F | 100.00 | |
| NEWSHELF1001 (Pty) Ltd (Lease Co) | South Africa | 70.00 | F | 100.00 | |
| SIYENZA GRAPHIC DESIGN AND SIGNAGE (PTY) LTD |
South Africa | 70.00 | F | 100.00 | |
| INTER-AFRICA OUTDOOR ADVERTISING (SOUTH AFRICA) (PTY) Ltd |
South Africa | 78.15 | F | 100.00 | |
| JCDecaux SUBSAHARAN AFRICA HOLDINGS (Pty) Ltd |
South Africa | 70.00 | F | 100.00 | |
| JINJA 3 OUTDOOR ADVERTISING PTY LTD | South Africa | 21.00 | E* | 30.00 | |
| JCDecaux ANGOLA LIMITADA | Angola | 78.15 | F | 100.00 | |
| URBANMEDIA ARGENTINA S.A. | (25) | Argentina | 100.00 | F | 100.00 |
| JCDecaux ARGENTINA OOH S.A. | Argentina | 100.00 | F | 100.00 | |
| JCDecaux ANZ PTY Ltd | Australia | 100.00 | F | 100.00 | |
| JCDecaux AUSTRALIA HOLDINGS PTY Ltd | Australia | 100.00 | F | 100.00 | |
| APN OUTDOOR GROUP PTY LTD | Australia | 100.00 | F | 100.00 | |
| APNO GROUP HOLDINGS PTY LTD | Australia | 100.00 | F | 100.00 | |
| APNO FINANCE PTY LTD | Australia | 100.00 | F | 100.00 | |
| JCDECAUX AUSTRALIA TRADING PTY LTD (previously APN OUTDOOR PTY LTD) |
(1) | Australia | 100.00 | F | 100.00 |
| JCDECAUX AUSTRALIA TRADING PTY LTD | Australia | 100.00 | F | 100.00 | |
| AUSTRALIAN POSTERS PTY LTD | Australia | 100.00 | F | 100.00 | |
| ADSPACE PTY LTD | Australia | 100.00 | F | 100.00 | |
| IOM PTY LIMITED | Australia | 100.00 | F | 100.00 | |
| GEWISTA WERBEGESELLSCHAFT.mbH | (1) | Austria | 67.00 | F | 67.00 |
| PROGRESS AUSSENWERBUNG GmbH | Austria | 45.10 | F | 51.00 | |
| PROGRESS WERBELAND WERBE. GmbH | Austria | 67.00 | F | 100.00 | |
| USP WERBEGESELLSCHAFT.mbH | Austria | 50.25 | F | 75.00 | |
| JCDecaux CENTRAL EASTERN EUROPE GmbH | Austria | 100.00 | F | 100.00 | |
| GEWISTA SERVICE GmbH | Austria | 67.00 | F | 100.00 | |
| ROLLING BOARD OBERÖSTERREICH WERBE GmbH |
Austria | 33.50 | E* | 50.00 | |
| KULTURFORMAT | Austria | 67.00 | F | 100.00 | |
| MEGABOARD SORAVIA GmbH | Austria | 45.10 | F | 51.00 | |
| ANKÜNDER GmbH | Austria | 22.31 | E | 33.30 | |
| JCDecaux BILLBOARD BELGIUM | Belgium | 86.93 | F | 100.00 | |
| JCDecaux ARTVERTISING BELGIUM | Belgium | 100.00 | F | 100.00 | |
| CS CONSULTING BVBA | Belgium | 86.93 | F | 86.93 | |
| PUBLICITE TOUSSAINT NV | (20) & (23) | Belgium | 86.93 | F | 100.00 |
| PUBLIROUTE NV | Belgium | 86.93 | F | 100.00 | |
| CITY BUSINESS MEDIA | Belgium | 100.00 | F | 100.00 |
| COMPANIES | COUNTRY | % INTEREST | CONSOL. METHOD |
% CONTROL* |
|
|---|---|---|---|---|---|
| JCDecaux BOTSWANA (PTY) LIMITED | Botswana | 78.15 | F | 100.00 | |
| JCDecaux GRANDES FORMATOS MIDIA EXTERIOR LTDA |
Brazil | 100.00 | F | 100.00 | |
| JCDecaux OUTDOOR Ltda | Brazil | 100.00 | F | 100.00 | |
| JCDecaux BULGARIA HOLDING BV | (8) | Bulgaria | 50.00 | E* | 50.00 |
| JCDecaux BULGARIA EOOD | Bulgaria | 50.00 | E* | 50.00 | |
| MARKANY LINE EOOD | Bulgaria | 25.00 | E* | 50.00 | |
| EASY DOCK EOOD | Bulgaria | 50.00 | E* | 50.00 | |
| PRIME OUTDOOR OOD | Bulgaria | 50.00 | E* | 50.00 | |
| JCDecaux IMAGE JSC | Bulgaria | 25.00 | E* | 50.00 | |
| IOAHC INVESTMENTS URUGUAY COMPANY | Cayman Islands |
100.00 | F | 100.00 | |
| IOA PROLIX COMPANY | Cayman Islands |
80.00 | F | 80.00 | |
| JCDecaux OOH CHILE S.A. | Chile | 100.00 | F | 100.00 | |
| POAD | China | 49.00 | E | 49.00 | |
| EUROPLAKAT Doo | Croatia | 45.10 | F | 51.00 | |
| CLEAR CHANNEL ESPANA, S.L.U. y CEMUSA - CORPORACION EUROPEA DE MOBILIARIO URBANO, S.A. |
(2) | Spain | 50.00 | E* | 50.00 |
| JCDecaux ESWATINI (PROPRIETARY) LIMITED | Eswatini | 78.15 | F | 100.00 | |
| INTERSTATE JCDecaux LLC | United States | 49.00 | E* | 49.00 | |
| TOP MEDIA GUATEMALA, S.A. | (14) | Guatemala | 76.16 | F | 100.00 |
| JCDecaux TOP MEDIA HONDURAS S.A. | Honduras | 76.16 | F | 100.00 | |
| JCDecaux REUNION ISLAND | Reunion Island | 62.13 | F | 100.00 | |
| DAVID ALLEN HOLDINGS Ltd | (7) | Ireland | 100.00 | F | 100.00 |
| DAVID ALLEN POSTER SITES Ltd | Ireland | 100.00 | F | 100.00 | |
| SOLAR HOLDINGS Ltd | Ireland | 100.00 | F | 100.00 | |
| JCDecaux IRELAND Ltd | (1) | Ireland | 100.00 | F | 100.00 |
| BRAVO OUTDOOR ADVERTISING Ltd | Ireland | 100.00 | F | 100.00 | |
| I-MAGO FIRENZE Spa | (3) | Italy | 60.00 | E* | 60.00 |
| JCDecaux LESOTHO (PTY) LTD | Lesotho | 78.15 | F | 100.00 | |
| JCDecaux MADAGASCAR SA | Madagascar | 62.52 | F | 80.00 | |
| JCDecaux OUTDOOR ADVERTISING LTD | Malawi | 78.15 | F | 100.00 | |
| JCDecaux (MAURITIUS) Ltd | Mauritius | 62.13 | F | 79.50 | |
| CONTINENTAL OUTDOOR MEDIA MANAGEMENT COMPANY (MAURITIUS) Ltd |
Mauritius | 78.15 | F | 100.00 | |
| VENDOR PUBLICIDAD EXTERIOR S DE R.L. DE C.V. |
Mexico | 60.00 | F | 100.00 | |
| CORPORACION DE MEDIOS INTEGRALES, S.A. DE C.V. |
Mexico | 60.00 | F | 100.00 | |
| PUBLITOP DE OCCIDENTE, S.A. DE C.V. | Mexico | 60.00 | F | 100.00 | |
| PUBLITOP, S.A. DE C.V. | Mexico | 60.00 | F | 100.00 | |
| JCDecaux MOZAMBIQUE LDA | Mozambique | 55.88 | F | 71.50 | |
| JCDecaux NAMIBIA OUTDOOR ADVERTISING (Pty) Limited |
Namibia | 78.15 | F | 100.00 | |
| JCDECAUX TOP MEDIA NICARAGUA SA. | Nicaragua | 76.16 | F | 100.00 | |
| JCDecaux NIGERIA OUTDOOR ADVERTISING Ltd | Nigeria | 54.71 | F | 70.00 | |
| JCDECAUX NEW ZEALAND HOLDINGS LIMITED | New Zealand | 100.00 | F | 100.00 | |
| JCDECAUX NEW ZEALAND TRADING LIMITED | (1) | New Zealand | 100.00 | F | 100.00 |
| JCDecaux UGANDA OUTDOOR ADVERTISING LTD | (25) | Uganda | 78.15 | F | 100.00 |
| COMPANIES | COUNTRY | % INTEREST | CONSOL. METHOD |
% CONTROL* |
|
|---|---|---|---|---|---|
| JCDecaux TOP MEDIA SERVICIOS DE PANAMA, S.A. |
Panama | 76.16 | F | 100.00 | |
| TOP MEDIA PANAMA, S.A. | Panama | 76.16 | F | 100.00 | |
| PUBLITOP DE PANAMA, S.A. | Panama | 76.16 | F | 100.00 | |
| JCDecaux NEONLIGHT Sp zoo | Poland | 100.00 | F | 100.00 | |
| GIGABOARD POLSKA Sp zoo Poland | Poland | 67.00 | F | 100.00 | |
| RED PORTUGUESA - PUBLICIDADE EXTERIOR S A |
(24) | Portugal | 96.63 | F | 96.63 |
| RED LITORAL - PUBLICIDADE EXTERIOR Lda | (24) | Portugal | 72.47 | F | 75.00 |
| DISTRIBUIDORA DE VALLAS DOMINICANA, S.A. | Dominican Rep. |
100.00 | F | 100.00 | |
| EUROPLAKAT Spol Sro | Czech Rep. | 67.00 | F | 100.00 | |
| JCDecaux Ltd | United Kingdom |
100.00 | F | 100.00 | |
| JCDecaux UNITED Ltd | United Kingdom |
100.00 | F | 100.00 | |
| ALLAM GROUP Ltd | United Kingdom |
100.00 | F | 100.00 | |
| EXCEL OUTDOOR MEDIA Ltd | United Kingdom |
100.00 | F | 100.00 | |
| TOP MEDIA EL SALVADOR, S.A. de C.V. | Salvador | 76.16 | F | 100.00 | |
| ISPA BRATISLAVA Spol Sro | Slovakia | 67.00 | F | 100.00 | |
| EUROPLAKAT Doo | Slovenia | 27.56 | E* | 41.13 | |
| PLAKATIRANJE Doo | Slovenia | 27.56 | E* | 41.13 | |
| SVETLOBNE VITRINE | Slovenia | 27.56 | E* | 41.13 | |
| MADISON Doo | Slovenia | 27.56 | E* | 41.13 | |
| METROPOLIS MEDIA Doo (SLOVENIA) | Slovenia | 27.56 | E* | 41.13 | |
| APG SGA SA | Switzerland | 30.00 | E | 30.00 | |
| JCDecaux TANZANIA LTD | Tanzania | 78.15 | F | 100.00 | |
| BIGBOARD B.V. | (9) | Ukraine | 50.00 | E* | 50.00 |
| ALTER-V LLC | Ukraine | 50.00 | E* | 50.00 | |
| BIG MEDIA LLC | Ukraine | 50.00 | E* | 50.00 | |
| BIGBOARD KHARKOV | Ukraine | 50.00 | E* | 50.00 | |
| BIGBOARD LLC (KIEV) | Ukraine | 50.00 | E* | 50.00 | |
| BIGBOARD LVOV | Ukraine | 50.00 | E* | 50.00 | |
| BIGBOARD VYSHGOROD | Ukraine | 50.00 | E* | 50.00 | |
| BIGBOARD ZAPOROZHIE | Ukraine | 50.00 | E* | 50.00 | |
| BOMOND LLC | Ukraine | 25.00 | E* | 50.00 | |
| MEDIA PARTNER - O | Ukraine | 50.00 | E* | 50.00 | |
| OUTDOORAUTO LLC | Ukraine | 50.00 | E* | 50.00 | |
| POSTER DNEPROPETROVSK | Ukraine | 50.00 | E* | 50.00 | |
| POSTER DONBASS | Ukraine | 50.00 | E* | 50.00 | |
| POSTER LLC (KIEV) | Ukraine | 50.00 | E* | 50.00 | |
| POSTER ODESSA | Ukraine | 50.00 | E* | 50.00 | |
| REKSVIT UKRAINE LLC | Ukraine | 50.00 | E* | 50.00 | |
| UKRAIYINSKA REKLAMA LLC | (2) | Ukraine | 50.00 | E* | 50.00 |
| JCDecaux ZAMBIA LTD | Zambia | 78.15 | F | 100.00 | |
| JCDecaux ZIMBABWE (PVT) LTD | Zimbabwe | 78.15 | F | 100.00 |
Note:
F = Full consolidation
* The percentage of control corresponds to the portion of direct or indirect ownership in the share capital of the companies except for the companies held by a company under joint control and under significant influence. For these companies, the percentage of control corresponds to the percentage of control of its owner.
For controlled companies and companies they hold under the equity method, the voting rights percentage is normally determined based on the percentage of control, with the exception of a few companies in China, where it is determined by representation on governance bodies, given that local legal and regulatory specificities do not allow it to be assessed otherwise, and Thailand, where the voting rights percentage is 98%.
On 9 March 2022, the Supervisory Board decided to propose to not distribute any dividend for 2021 at the General Meeting in May 2022.
On 31 January 2022, the Group announced that it has issued 500 million euros of 8-year bonds maturing 7 February 2030. The proceeds of this issue will be used for general corporate purposes and to refinance existing debts.
KPMG Audit ERNST & YOUNG et Autres Département de KPMG S.A. Tour Eqho 2, avenue Gambetta CS 60055 92066 Paris-La Défense cedex S.A. au capital de € 5 497 100 775 726 417 R.C.S. Nanterre
Commissaire aux Comptes Membre de la compagnie régionale de Versailles et du Centre
Tour First TSA 14444 92037 Paris-La Défense cedex S.A.S. à capital variable 438 476 913 R.C.S. Nanterre
Commissaire aux Comptes Membre de la compagnie régionale de Versailles et du Centre
JCDecaux SA Year ended 31 December 2021
To the Annual General Meeting of JCDecaux SA,
In compliance with the engagement entrusted to us by your Annual General Meeting, we have audited the accompanying consolidated financial statements of JCDecaux SA for the year ended 31 December 2021.
In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial position of the Group as at 31 December 2021 and of the results of its operations for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union.
The audit opinion expressed above is consistent with our report to the Audit Committee.
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Statutory Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report.
We conducted our audit engagement in compliance with the independence requirements of the French Commercial Code (Code de commerce) and the French Code of Ethics for Statutory Auditors (Code de déontologie de la profession de commissaire aux comptes) for the period from 1 January 2021 to the date of our report, and specifically we did not provide any prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No. 537/2014.
We draw your attention to Note 1.11.4 "IFRS 16 Rent concessions in the context of the Covid-19 epidemic" to the consolidated financial statements, which describes the consequences of the application of the amendment to IFRS 16 concerning the accounting treatment of COVID-19-related rent concessions beyond 30 June 2021.
Our opinion is not modified in respect of this matter.
Due to the global crisis related to the COVID-19 pandemic, the financial statements for this accounting period have been prepared and audited under special circumstances. Indeed, this crisis and the exceptional measures taken in the context of the health emergency have had numerous consequences for companies, particularly on their operations and their financing, and have led to greater uncertainties regarding their future prospects. These measures, such as travel restrictions and remote working, have also had an impact on companies' internal organization and on how audits are performed.
It is in this complex, evolving context that, in accordance with the requirements of Articles L. 823-9 and R. 823-7 of the French Commercial Code (Code de commerce) relating to the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period, as well as how we addressed those risks.
These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on specific items of the consolidated financial statements.
| Risk identified | As of 1 January 2019, your group has applied IFRS 16 "Leases", according to which lessees use the same recognition model for all leases with the recognition of a right-of-use asset and a lease liability. Under this standard, a contract is a lease, or contains a lease component, if it conveys the right to the lessee to control the use of an identified asset (mainly advertising space in the case of your group) for a period of time in exchange for consideration. Contracts providing for substantive rights of substitution of advertising space by the lessor are excluded from the standard. |
|---|---|
| The conditions of application of IFRS 16 are described in the note "Leases" to the consolidated financial statements. Thus, as at 31 December 2021, the right-of-use assets in your company's consolidated financial statements amount to €2,964.8m. Your group opted for the application of |
|
| the amendment to IFRS 16 published by the European Union on 9 October 2020 and on 30 |
| August 2021, which specifies the methods of accounting for the COVID-19-related rent concessions granted by lessors within the context of the COVID-19 crisis for the period until 30 June 2022. |
||||
|---|---|---|---|---|
| We considered the accounting treatment of leases to be a key audit matter due to the number and importance of these contracts for your group, the significant impact of this standard on the consolidated financial statements, the accounting methods chosen and the high level of judgment required by your group's Management to determine the assumptions adopted (the substantive nature of the lessors' rights of substitution, the effective term of the leases including their tacit renewal, and the determination of discount rates). |
||||
| Our work notably consisted in: • familiarizing ourselves with the procedures set up by your group to identify and account for leases; |
||||
| • assessing the relevance of the methods used to determine the main assumptions underlying the determination of the right-of-use assets and the lease liabilities; |
||||
| • assessing the relevance of the analyses performed by your group on the substantive nature of the rights of substitution granted to lessors; |
||||
| • assessing whether the new amendments to IFRS 16 concerning the treatment of rent concessions within the context of COVID-19 have been correctly applied; |
||||
| Our response | • testing the reliability of the information system dedicated to the management of the leases concerned by the application of IFRS 16 with the assistance of our experts; |
|||
| • comparing, through sampling: • the data entered in the information system to determine the assets and liabilities relating to leases, based on the underlying contractual documents; |
||||
| • the criteria taken into account by Management to determine the effective rental period used for tacit renewal contracts and the contracts including termination and renewal options; |
||||
| • the data used to determine the financing rates with the market data; |
||||
| • assessing the appropriateness of the disclosures in the notes to the consolidated financial statements. |
| As at 31 December 2021, the net carrying amount of goodwill, other tangible and intangible assets, right-of-use assets and equity-accounted investments was €6,706.8m. |
|
|---|---|
| Your group performs impairment tests at the level of the cash-generating units (CGUs) corresponding to the operating entities for tangible and intangible assets and equity-accounted |
|
| Risk identified | investments, and at the level of each group of CGUs for which the scope is determined either at the level where the operating segments and the geographical area meet, or based on specific CGU groups (Airports sector, Pacific and France Roadside areas) for goodwill. |
| The impairment testing methods used by your group are described in Note 1.10 to the consolidated financial statements. |
| These impairment tests constitute a key audit matter due to the importance of the assets concerned in the consolidated financial statements and the estimates and judgments required for their valuation. They use forecast data specific to each operating segment to determine the recoverable amount, as described in 1.10 "Impairment of intangible assets, property, plant and equipment, right-of-use and goodwill" of the notes to the consolidated financial statements. |
|
|---|---|
| Our response | Our audit procedures notably consisted in: • familiarizing ourselves with the processes and analysis performed by the your group for the purposes of these valuations; • reconciling the net asset values of the assets subject to impairment tests with the accounts and their allocation by cash generating unit; • verifying, through sampling, the arithmetic accuracy of the model used to determine values in use; • analyzing the reasonableness of the main assumptions used, based on discussion with the Finance Management and the Executive Board of your group, and by comparison with the data used for previous impairment tests as well as the historical performance of the subsidiaries concerned; • assessing the reasonableness of the discount rate, long-term growth rate and renewal rate of the contracts; • performing sensitivity analyses on the main assumptions used; • assessing the appropriateness of the disclosures in the notes to the consolidated financial statements. |
We have also performed, in accordance with professional standards applicable in France, the specific verifications required by French laws and regulations of the information given in the Executive Board's group management report.
We have no matters to report as to its fair presentation and its consistency with the consolidated financial statements
We attest that the consolidated non-financial statement provided for by Article L. 225-102-1 of the French Commercial Code (Code de commerce) is included in the group management report, it being specified that, in accordance with the provisions of Article L. 823-10 of said Code, we have verified neither the fair presentation nor the consistency with the financial statements of the information contained in this statement. This information should be the subject of a report by an independent third party.
We have also verified, in accordance with the professional standard applicable in France relating to the procedures performed by statutory auditors regarding the annual and consolidated financial statements prepared in the European single electronic format, that the preparation of the consolidated financial statements intended to be included in the annual financial report mentioned in Article L. 451-1-2, I of the French Monetary and Financial Code (Code monétaire et financier), prepared under the responsibility of the Chairman of the Executive Board, complies with the single electronic format defined in Commission Delegated Regulation (EU) No. 2019/815 of 17 December 2018. Regarding consolidated financial statements, our work includes verifying that the tagging thereof complies with the format defined in the above-mentioned regulation.
On the basis of our work, we conclude that the preparation of the consolidated financial statements intended to be included in the annual financial report complies, in all material respects, with the European single electronic format.
We have no responsibility to verify that the consolidated financial statements that will ultimately be included by your Company in the annual financial report filed with the AMF (Autorité des marchés financiers) agree with those on which we have performed our work.
We were appointed as statutory auditors of JCDecaux SA by the annual general meeting held on 10 May 2006 for KPMG S.A., and on 20 June 2000 for ERNST & YOUNG et Autres.
As at 31 December 2021, KPMG S.A. was in its sixteenth year and ERNST & YOUNG et Autres in its twentysecond year of total uninterrupted engagement, including twenty-one years since the securities of the company were admitted to trading on a regulated market.
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the European Union and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected to liquidate the Company or to cease operations.
The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and risks management systems and where applicable, its internal audit, regarding the accounting and financial reporting procedures.
The consolidated financial statements were approved by the Executive Board.
Our role is to issue a report on the consolidated financial statements. Our objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As specified in Article L. 823-10-1 of the French Commercial Code (Code de commerce), our statutory audit does not include assurance on the viability of the Company or the quality of management of the affairs of the Company.
As part of an audit conducted in accordance with professional standards applicable in France, the statutory auditor exercises professional judgment throughout the audit and furthermore:
We submit to the Audit Committee a report which includes in particular a description of the scope of the audit and the audit program implemented, as well as the results of our audit. We also report significant deficiencies, if any, in internal control regarding the accounting and financial reporting procedures that we have identified.
Our report to the Audit Committee includes the risks of material misstatement that, in our professional judgment, were of most significance in the audit of the consolidated financial statements of the current period and which are therefore the key audit matters that we are required to describe in this report.
We also provide the Audit Committee with the declaration provided for in Article 6 of Regulation (EU) No. 537/2014, confirming our independence within the meaning of the rules applicable in France as set out in particular in Articles L. 822-10 to L. 822-14 of the French Commercial Code (Code de commerce) and in the French Code of Ethics for Statutory Auditors (Code de déontologie de la profession de commissaire aux comptes). Where appropriate, we discuss with the Audit Committee the risks that may reasonably be thought to bear on our independence, and the related safeguards.
Paris-La-Défense, 16 March 2022
The Statutory Auditors
French original signed by:
KPMG Audit Département de KPMG S.A ERNST & YOUNG et Autres
Frédéric Quelin Grégoire Menou Aymeric de La Morandière
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