2010 ANNUAL RESULTS March 9 th BEIJING METRO, China

Transcription

1 2010 ANNUAL RESULTS March 9 th 2011 BEIJING METRO, China 1

2 BUSINESS OVERVIEW Jean-Charles Decaux Chairman of the Executive Board and Co-CEO 2

3 2010 RESULTS (In million, under IFRS standards) 2010 Consolidated 2009 Consolidated Change Actual Revenues 2, ,918.8 Operating margin (1) EBIT (2) Net income Group share Net cash flow from operations Free cash flow % +41.7% % 7.0x +40.1% +98.7% = Operating Margin less Depreciation, amortization, provisions less Impairment of goodwill less Maintenance spare parts less Other operating (1) Operating Margin = Revenues less Direct Operating Costs (excluding Maintenance spare parts) and SG&A costs (2) EBIT = Earnings Before Interests and Taxes income and expenses. 3

4 2010 REVENUE GROWTH BY BUSINESS Organic growth (%) (1) Reported growth (%) 31.9% 22.8% 22.5% 15.6% 7.3% 9.1% 7.7% 3.8% Street Furniture Transport Billboard Group Street Furniture Transport Billboard Group (1) Organic growth = excluding acquisitions / divestitures and the impact of foreign exchange 4

5 2010 REVENUE GROWTH BY REGION Organic growth (%) (1) 29.3% 21.9% 9.1% 2.4% 6.1% 6.2% Rest of the World Europe (2) France Asia- Pacific UK North America Total Group -9.3% (1) Organic growth = excluding acquisitions / divestitures and the impact of foreign exchange (2) Excluding France and the United Kingdom 5

6 2010 REVENUE BREAKDOWN By business (% of total) By region (% of total) North America Rest of the World : 4% Billboard UK Europe (1) 18% 49% Asia-Pacific 12% 8% 33% Transport 33% Street Furniture 18% 25% France (1) Excluding France and the United Kingdom 6

7 Nº1 OUTDOOR ADVERTISING COMPANY IN THE WORLD Pure play business is the clear winner Sources: Company news releases. Currency conversions are based on an annual average exchange rate $/ of in 2000 and in 2010 * JCDecaux s estimates of CBS outdoor revenues in 2000 as CBS did not disclose the split between Infinity outdoor and radio business 7 7

8 BUSINESS HIGHLIGHTS Organic growth & renewals Acquisitions Sales & Marketing 8

9 TENDER ACTIVITY New contracts Contract renewals STREET FURNITURE France Montpellier (bus shelters) Kazakhstan Almaty TRANSPORT Saudi Arabia 26 national & international airports Changi airport Singapore China Nanjing metro (line 2) Dubai World Central Al Maktoum airport Algeria Bus stations STREET FURNITURE France Tours Angers Montpellier (MUPI 2sqm) Ile de France region: 11 cities Spain Valencia (bicycles) TRANSPORT France Aéroports de Paris Bordeaux airport Lille airport UK BAA: Heathrow, Edinburgh, Aberdeen & Glasgow airports China Nanjing metro (line 1) Chile Santiago metro USA Washington airports 9

10 PREMIUM OUTDOOR NETWORK AVAILABLE FOR THE FIRST TIME IN GERMANY IN 2011 WallDecaux wins Axel Springer s outdoor advertising budget for 2011/2012 Tanja Hackner (Head of Advertising of Bild) said: «Bild is one of the most successful newspaper in Europe and die Welt one of the leading quality newspaper in Germany. Their promotion can only take place on prime and creative Outdoor Advertising displays. WallDecaux can now offer both on a national basis.» 10

11 UK: UNIQUE PORTFOLIO OF OUTDOOR ASSETS Titan: leading rail and point of sale assets Titan: strong digital exposure (30%+ of total revenues) Titan: 2010 organic revenue growth 25%+ JCDecaux: high quality and most diverse range of assets in the UK 11

12 DIGITAL REVENUES MORE THAN DOUBLED IN Digital screens 4,800 6,000 Selective digital roll out accelerated in , , Still less than 5% of total Group revenues New York, USA 12

13 2010 CLIENT BASE Category 2010 Revenue % Retail 13.9% Leisure / Entertainment / Film 13.4% Banking / Finance 10.1% Personal Care/Luxury Goods 8.9% Food and beverage 8.3% Services 7.7% Telecom/Technology 7.5% Fashion 6.5% Automobile 6.2% Travel 5.2% Government 3.0% Restaurants 2.5% Wine and spirits 2.3% Beer 1.8% Others 1.4% Tobacco 0.8% Internet 0.5% Client s categories remain well diversified Retail is our largest category Strong spending increases from Financials, Luxury goods, Telcos and Fashion Tobacco was the only category to see decreasing spendings in 2010 while government spendings remained flat 13

14 HSBC: BEYOND OUR GLOBAL JETBRIDGE PROGRAM Shanghai Bangkok New York HSBC: JCDecaux s largest client worldwide London Singapore Paris 14

15 L OREAL: SUCCESSFUL PARTNERSHIP IN 36 COUNTRIES BOOSTING REVENUES Hong Kong London Saragossa Paris Los Angeles Los Angeles Milan 15

16 U SNAP : THE NEW DIGITAL POSTER U snap: enrich brand communication out of home through: interviews couponing trailers lottery geo marketing.. 52,000 apps downloaded 12,000 snaps per week International deployment in May

17 LANCÔME FIRST ADVERTISER ON U SNAP From online make up tips to a detailed presentation of «L absolu Rouge» products 17

18 «BURBERRY AU MUSÉE D ORSAY» 18

19 PORSCHE IN SHANGHAI Shanghai Hongqiao airport 19

20 FINANCIAL HIGHLIGHTS Laurence Debroux Executive Vice-President, Finance & Administration 20

21 P&L (In million, except %, under IFRS standards) % change Revenues 2, , % Operating costs (1,794.6) (1,526.8) Operating margin (1) % Depreciation & amortisation, spare parts & others (281.2) (248.6) Impairment charges (2) 4.8 (20.6) EBIT (3) % (4) (4) Financial income (loss) (27.0) (16.2) Tax (78.8) (38.0) Equity affiliates 3.9 (30.7) Minority interests (3.8) (13.4) Net Income Group share x (1) Operating Margin = Revenues less Direct Operating Costs (excluding Maintenance spare parts) and SG&A costs (2) On property, plants & equipments and intangible assets only (3) EBIT = Earnings Before Interests and Taxes = Operating Margin less Maintenance spare parts less Depreciation and provisions less Goodwill impairment less Other operating income and expenses (4) Excluding - 7.8m & - 3.4m in 2010 and 2009 respectively for impact of put on minorities actualization. Discounting impact not liable to tax. 21

22 SUCCESSFUL COST OPTIMIZATION PLAN In m , , Rents & Fees excluding Rest of the World* R&Fs Rest of the World* Group other operating costs Foreign exchange cost variations Scope cost variations 2008 Costs 2010 Costs * Latin America, Africa, Middle East and Central Asia, Russia & Ukraine 22

23 STRONG ORGANIC OPERATING LEVERAGE IN 2010 In m 2009 Foreign Exchange variations Scope variations Organic growth 2010 Revenues 1, ,350.0 Operating margin Organic operating leverage of 60 % 23

24 MARGINS BY DIVISION (under IFRS standards) Operating margin (% of revenues) EBIT (% of revenues) +90bp 32.8% +320bp +540bp 14.8% +550bp 15.1% 23.6% +520bp 15.2% +790bp 10.7% +190 bp +550bp 11.9% 5.1% Street Furniture Transport Billboard Total Group Street Furniture Transport Billboard Total Group 24

25 GROUP OPERATING MARGIN: THE TRANSPORT UPSIDE Group operating margin as a % of revenues (contribution per segment) 30% 25% 27.2% 24.5% 25.7% 27.0% 28.5% 27.2% 27.4% 26.4% 25.4% average 23.6% 20% 20.4% 15% 10% 5% 0% Street Furniture Transport Billboard 25

26 STREET FURNITURE OPERATING MARGIN Operating margin (% of revenues) Note: French Gaap until 2003 IFRS as of (1) 33 European Expansion US Expansion French renewals Emerging market expansion m 1,147m (1) Excluding the impact from acquisitions Revenues: 5.2x 26

27 CASH FLOW STATEMENT (In million, except %, under IFRS standards) % change Net Cash flow from operating activities % General Inv. & Renewal capex (62.2) (112.8) Adjusted free cash flow % Growth capex (incl. intangible asset) (93.0) (66.9) Free cash flow % Dividends (net) (4.7) 1.7 Equity increase Financial investments (net) (3.2) (60.0) Others (1) (13.2) (71.6) Change in net debt (Balance Sheet) (2) (311.2) (36.6) Net debt as of end of the year net debt / operating margin 0.6x 1.7x Note: Adjusted free cash flow = Free Cash Flow before Growth Capex. (1) Non cash variations (mainly due to consolidation scope variations, translation differences on net financial debt, the impact of IAS 39 and finance lease) (2) Excluding the IAS 32 impact, including the IAS 39 impact on both debt and financial derivatives and including the restatement of loans related to companies consolidated under the proportionate method 27

28 LOWER CAPITAL INTENSITY HIGHER SHARE OF GROWTH CAPEX In m ,7% 14,5% 14,1% ,5% ,8% ,7% ,1% 61 8,8% ,4% ,6% General capex Renewal capex Growth capex Capex as a % of sales 28

29 GROWTH STRATEGY AND OUTLOOK Jean-François Decaux Co-CEO 29

30 OUTPERFORMING THE MEDIA MARKET 8.8% 9.1% 3.8% 6.3% 3.0% 6.3% 5.0% 4.9% 0.8% % 2010 World GDP, IMF World Economic Outlook January 2011 World Advertising Spending, Zenith Optimedia December 2010 JCDecaux Organic revenue growth -10.6% -10.9% 30

31 AND ITS MAIN INDUSTRY PEERS AS WELL ORGANIC REVENUE GROWTH (%) Global Americas* Sources: Company news releases. JCDecaux s estimates * JCDecaux: USA & Canada only JCDecaux CCO CBSO 31 31

32 WHAT IS DRIVING OUTPERFORMANCE? Outdoor gains media share Further consolidation A well balanced mix of activities GROWTH A selective digital strategy A strong & increasing emerging market exposure A leader in product innovation 32

33 OUTDOOR WILL CONTINUE TO GAIN SHARE... 15% 12.5% 10% 5% 0 0.8% 0.2% 3.3% 3.9% 0% 7.4% 7.6% 6.1% 7.1% 9.7% 6.7% 9.6% 2.8% 4.8% 4.6% 5.4% 5.7% 5.7% 5.3% -5% -3.7% 1% -10% Global Ad Spend % % Outdoor Source: Zenith Optimedia, October

34 SUPPORTED BY STRONG OUTDOOR FUNDAMENTALS FRAGMENTATION of traditional media Outdoor advertising: the last mass medium DIGITAL upside / CREATIVE SOLUTIONS for advertisers Increasingly URBAN population: more AUDIENCE & INFRASTRUCTURE NEEDS 2008: for the first time more than 50% of the worldwide population is urban* China: 130 subway lines to be built in 17 cities** INVENTORY REDUCTION in mature markets : LESS IS MORE * Source: UN Habitat: State of the World s Cities 2008/2009 ** Source: Metro Companies websites, City or Provincial Governmental News 34

35 JCDECAUX: A UNIQUE MIX OF ACTIVITIES TO CAPTURE GROWTH Street Furniture Transport Billboard Nº1 Worldwide 427,000 panels / 45 countries 1,800 cities of more than 10,000 people Premium downtown locations Significant growth potential in emerging markets Nº1 Worldwide 370,000 panels / 25 countries 184 airports in the world Significant ongoing infrastructure developments in emerging markets Strong digital fit Nº3 Worldwide / Nº1 in Europe 227,000 panels / 30 countries Transition towards less boards with more value Digital increasingly suitable 35

36 STRONG ORGANIC GROWTH POTENTIAL IN GERMANY: 2 TIER II CITIES & 9 TIER III CITIES GOING OUT TO TENDER City JC Decaux (Wall) TIER I Strö er (DS M) D eutsche Telekom / AW K / (others) City JC Decau x (Wall) TIER III Ströer (DS M) Deutsche Telekom / AW K / (othe rs) 1 Berlin 19 Bonn 2Hamburg 20 Mannheim 3 Munich JV 21 Karlsruhe 4 Cologne 22 Wiesbaden * T IER II 23 Münster 5Frankfurt 27 Aachen 6 Stuttgart 28 Braunschweig 7 Dortmund 29 Chemnitz 8 Essen 34 F reiburg 9 Düsseldorf 36 Lubeck 10 Bremen 37 Erfurt 11 Hannover 38 Rostock 12 Leipzig 53 Heidelberg * 13 Dresden 54 Paderborn 14 Nuremberg 58 Ingolstadt Tier 1 cities: population > 1,000,000 Tier 2 cities: population > 500,000 Tier 3 cities: population > 100,000 Tender expected in 2011 /2012 Wall s bid selected but legally challenged by Ströer * Excluding bus shelters 36

37 AIRPORT ADVERTISING: FURTHER TAKE OFF EXPECTED AIRPORT advertising increasingly appealing to REACH professional DECISION MAKERS & HIGH WEALTH INDIVIDUALS SCALE of airport network key to ATTRACT INTERNATIONAL BRANDS: JCDecaux reaches 29% OF GLOBAL PASSENGER TRAFFIC Leading US AIRPORTS for TENDER IN 2011: Chicago, San Francisco, Boston and Atlanta STRONG PASSENGER INCREASE & airport INFRASTRUCTURE SPEND expected in the coming years: from 3bn passengers in 2000 to 11bn* IN 2030 * Source: ACI 37

38 EXPOSURE TO FAST-GROWING MARKETS CONTINUES TO INCREASE Share of fast-growing countries* (% of total Group revenues) 30% Doha, Qatar 16% 19% 21% 23% Seoul, South Korea Dubai, UAE 8% Prague, Istanbul, Czech Turkey Sydney, RepublicAustralia Mid term Bangalore, India *Includes Central & Eastern Europe (excl. Austria), Baltic countries, Russia, Turkey, Ukraine, Latin America, Asia (China (incl. HK), Thailand, South Korea, Malaysia, Singapore, India but excluding Japan), Africa, Middle East, Central Asia 38

39 2011: A TIPPING POINT FOR CONSOLIDATION? 3,115 (1) 2, Americas JCDecaux 2,798 1,508 INTERNATIONAL 1,290 AMERICAS CCO 1, AMERICAS INTERNATIONAL 1,199 CBS Outdoor 1,092 Lamar 30 % stake 709 (2) Ströer 292 Affichage Holding 289 Metrobus 33 % stake 280 (3) (3) News Outdoor (2010 outdoor revenues, in million $) Air Media APN 180 (3) Titan Outdoor Epa Media 171 Cemusa Eye Vison Media Sources: Company news releases, Internet sites & JCDecaux estimates. Currency conversions are based on an annual average exchange rate $/ of , $/CHF of and $/AUD of in (1) Does not include revenues from Affichage Holding and Metrobus, companies integrated through the equity method in JCDecaux s financial statements. (2) Bloomberg consensus (3) JCDecaux s estimate of 2010 revenues 39

40 CONCLUSION Strong financial achievements in 2010: Reported revenue growth of 22.5% Significant rebound in profitability No dividend proposed to maximise the financial flexibility of the Group Organic growth for Q expected around 6% JCDecaux: a structural growth story Nº1 outdoor advertising company in the world Global exposure to fast growing Street Furniture & Transport activities Strong emerging market exposure and digital upside Strong organic and external growth opportunities 40

41 2010 ANNUAL RESULTS March 9 th 2011 DUSSELDORF, Germany 41