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Recognized as best in class by extra-financial rating institutions (EcoVadis: Platinum, CDP: A-), we continued to strengthen our ESG leading initiatives and commitments in 2022 as we have notably unveiled in May 2022 our ambitious 2030 ESG Strategy and we continued to reduce our carbon footprint, which is now at -27% in 2022 vs 2019 (scopes 1, 2 and 3). Our highly positive business model financing public services and public transportation contributes to mitigate climate change. Almost 50% of our 2022 revenues are thus eligible and aligned with the European taxonomy. Today we announce our new Climate Strategy, “committed SBTi”, which includes strong proactive commitments to further optimize our carbon footprint such as reducing by 2030, scopes 1 and 2 emissions, by 60%, scope 3 emissions by 46% and reaching Net Zero by 2050 (scopes 1, 2 and 3).

As far as Q1 2023 is concerned, we now expect an organic revenue growth rate at around +2.5% including a double-digit revenue decline in China where we start seeing an inflection point from March as mobility is returning to normal.

As the most digitised global OOH media 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, the high quality of our teams across the world and our recognised ESG excellence, 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 drive economic growth as well as 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:

• to include our prorata share in companies under joint control, regarding IFRS 11,

• to exclude the impact of IFRS 16 on our core business lease agreements (lease agreements of locations for advertising structures excluding real estate and vehicle rental contracts).

Please refer to the paragraph “Adjusted data” on page 4 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.

ADJUSTED REVENUE

As reported on January 26^th, 2023, adjusted revenue increased by +20.8%, +16.6% on an organic basis, to €3,316.5 million compared to €2,744.6 million in 2021.

By activity, Transport and Street Furniture rebounded the most followed by Billboard.

(a) Excluding acquisitions/divestitures and the impact of foreign exchange

All geographies performed strongly with a double-digit revenue growth in 2022 except Asia-Pacific as China was impacted by historically low mobility levels.

(a) Excluding acquisitions/divestitures and the impact of foreign exchange

(b) Excluding France and the United Kingdom

ADJUSTED OPERATING MARGIN ⁽¹⁾

For 2022, our adjusted operating margin has significantly improved by €180.7 million to reach €602.9 million (vs €422.3 million in 2021), a +42.8% increase year-on-year reflecting a strong operating leverage due to a tight control over our cost base growing at a slower pace than our revenue growth despite the negative impact from the decrease of revenue in China year-on-year. The adjusted operating margin as a percentage of revenue was 18.2% in 2022, +280bp above prior year.

The adjusted operating margin as a percentage of revenue by business segment:

ADJUSTED EBIT ⁽²⁾

In 2022, adjusted EBIT before impairment charge improved by €195.7 million to €212.0 million. As a percentage of revenue, this represented a 580bp increase to 6.4%, from +0.6%. Excluding the positive impact from the accounting revaluation of our stake in Interstate JCDecaux, adjusted EBIT before impairment charge for 2022 reached 5.1% as a percentage of revenue.

The net impairment charge on tangible and intangible assets, rights-of-use assets and joint-ventures of €19.1 million in 2022 is mainly related to assets in China reflecting the historically low level of activity due to mobility restrictions in this geography.

Adjusted EBIT, after impairment charge, has improved by €184.3 million from €8.7 million in 2021 to €193.0 million in 2022.

NET FINANCIAL INCOME / (LOSS) ⁽³⁾

In 2022, interest expenses on IFRS 16 leases were quite stable at -€84.1 million compared to -€82.2 million in 2021, the mechanical reduction of the IFRS 16 lease liability related to the contract life progression being compensated by the additions coming from new contracts, contracts extended and contracts renewed.

In 2022, excluding IFRS 16, other net financial income / (loss) was -€55.0 million compared to -€42.8 million in 2021, a variation of -€12.2 million mainly due the impact of currency hedges and the increase in financial interests from the €500 million bond issued in February 2022.

EQUITY AFFILIATES

In 2022, the share of net profit from equity affiliates was €8.6 million, a decrease of €40.0 million mainly due to an impairment charge on our investment in Clear Media reflecting the historically low level of activity due to mobility restrictions in this geography.

NET INCOME GROUP SHARE

In 2022, net income Group share turned positive as it increased by €146.7 million to €132.1 million compared to -€14.5 million in 2021, which mainly came from the improvement in our operational performance, the net positive impact from the accounting revaluation of our stake in Interstate JCDecaux being partly offset by the net negative impact of the impairment charges over the period.

ADJUSTED CAPITAL EXPENDITURE

In 2022, adjusted net capex (acquisition of property, plant and equipment and intangible assets, net of disposals of assets) at €349.9 million increased by €192.4 million, +68.2% year-on-year, mainly driven by the pick-up in tenders in 2022 following Covid delays including €84.9 million of payment for advertising rights related to the renewal and extension of our long-term partnership with Shanghai Metro. Excluding this specific payment, the capex to sales ratio amounted to 8% consistent with the average ratio over the last 10 years.

ADJUSTED FREE CASH FLOW ⁽⁴⁾

In 2022, operating cash flows reached +€399.4 million improving by +€161.8 million compared to 2021 mainly driven by the improving operating margin. Changes in our working capital had almost no impact on the cash-flow generation during the period (-€6.4 million) despite the strong increase in revenue thanks to an ongoing tight management over cash collection and payments. After capital expenditure, adjusted free cash flow amounted to €43.2 million.

DIVIDEND

No dividend was paid in 2022 in order to strengthen Group’s liquidity, balance sheet and financial flexibility.
To continue to reinforce our capacity to seize future organic and external bolt-on investment opportunities, we will propose at the Annual General Meeting which will take place on May 16^th, 2023, not to pay any dividend in 2023.

NET DEBT ⁽⁵⁾

Net debt amounted to €975.0 million as of December 31^st, 2022, a slight increase vs December 31^st, 2021 where it stood at €924.5 million mainly driven by bolt on M&A activity.

In January 2023, we decided to take advantage of the good market conditions to extend our debt maturity schedule and secured our financing profile with the issuance of a €600 million bond with a maturity in 2029 and a coupon at 5.00%. Subscribed more than 2 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.

RIGHT-OF-USE & LEASE LIABILITIES IFRS 16

Right-of-use IFRS 16 as of December 31^st, 2022 amounted to €2,725.3 million compared to €2,964.8 million as of December 31^st, 2021, a decrease related to the amortisation of rights-of-use and contracts renegotiations partially offset by foreign exchange rate impacts, perimeter impacts, new contracts, contracts extended and contracts renewed.

IFRS 16 lease liabilities decreased from €3,655.8 million as of December 31^st, 2021 to €3,412,1 million as of December 31^st, 2022. The decrease, mainly related to repayments occurred in 2022 as well as renegotiations and end of contracts is partially offset by new contracts, extensions and renewals, a positive foreign exchange rates impact and a positive perimeter impact.

ADJUSTED DATA

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:

• To integrate on proportional basis operating data of the companies under joint control and;

• To exclude the IFRS 16 impact on our core business (lease agreements of locations for advertising structures excluding real estate and vehicle rental contracts).

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 2022, the impacts of IFRS 11 and IFRS 16 on our adjusted aggregates are:

• -€242.5 million for IFRS 11 on adjusted revenue (-€222.1 million for IFRS 11 in 2021) leaving IFRS revenue at €3,074.0 million (€2,522.5 million in 2021).

• -€60.6 million for IFRS 11 and €780.2 million for IFRS 16 on adjusted operating margin
  (-€58.9 million for IFRS 11 and €800.5 million for IFRS 16 in 2021) leaving IFRS operating margin at €1,322.5 million (€1,163.9 million in 2021).

• -€45.0 million for IFRS 11 and €114.1 million for IFRS 16 on adjusted EBIT before impairment charge (-€39.5 million for IFRS 11 and €99.5 million for IFRS 16 in 2021) leaving IFRS EBIT before impairment charge at €281.1 million (€76.2 million in 2021).

• -€43.6 million for IFRS 11 and €114.1 million for IFRS 16 on adjusted EBIT after impairment charge (-€39.5 million for IFRS 11 and €99.5 million for IFRS 16 in 2021) leaving IFRS EBIT after impairment charge at €263.4 million (€68.6 million in 2021).

• €8.1 million for IFRS 11 on adjusted capital expenditure (€7.2 million for IFRS 11 in 2021) leaving IFRS capital expenditure at -€341.8 million (-€150.3 million in 2021).

• €12.1 million for IFRS 11 and €702.5 million for IFRS 16 on adjusted free cash flow (-€7.8 million for IFRS 11 and €647.8 million for IFRS 16 in 2021) leaving IFRS free cash flow at €757.8 million (€851.5 million in 2021).

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

NOTES

(1)   Operating Margin: Revenue less Direct Operating Expenses (excluding Maintenance spare parts) less SG&A expenses.
(2)   EBIT: Earnings Before Interests and Taxes = Operating Margin less Depreciation, amortization and provisions (net) less Impairment of goodwill less Maintenance spare parts less Other operating income and expenses.
(3)   Net financial income / (loss): Excluding the net impact of discounting and revaluation of debt on commitments to purchase minority interests (€3.6 million and -€2.1 million in FY 2022 and FY 2021 respectively).
(4)   Free cash flow: Net cash flow from operating activities less capital investments (property, plant and equipment and intangible assets) net of disposals.
(5)   Net debt: Debt net of managed cash less bank overdrafts, excluding the non-cash IAS 32 impact (debt on commitments to purchase minority interests), including the non-cash IFRS 9 impact on both debt and hedging financial derivatives and excluding IFRS 16 lease liabilities.

ORGANIC GROWTH DEFINITION

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.

Key Figures for JCDecaux

• 2022 revenue: €3,317m^(a)

• N°1 Out-of-Home Media company worldwide

• A daily audience of more than 850 million people in more than 80 countries

• 1,042,132 advertising panels worldwide

• Present in 3,573 cities with more than 10,000 inhabitants

• 11,200 employees

• JCDecaux is listed on the Eurolist of Euronext Paris and is part of the Euronext 100 and Euronext Family Business indexes

• JCDecaux is recognised for its extra-financial performance in the FTSE4Good (3.6/5), CDP (A- Leadership), MSCI (AA) and has achieved Platinum Medal status from EcoVadis

• 1^st Out-of-Home Media company to join the RE100 (committed to 100% renewable energy)

• Leader in self-service bike rental scheme: pioneer in eco-friendly mobility

• N°1 worldwide in street furniture (603,119 advertising panels)

• N°1 worldwide in transport advertising with 153 airports and 205 contracts in metros, buses, trains and tramways (330,470 advertising panels)

• N°1 in Europe for billboards (81,162 advertising panels)

• N°1 in outdoor advertising in Europe (654,957 advertising panels)

• N°1 in outdoor advertising in Asia-Pacific (170,973 advertising panels)

• N°1 in outdoor advertising in Latin America (129,305 advertising panels)

• N°1 in outdoor advertising in Africa (24,198 advertising panels)

• N°1 in outdoor advertising in the Middle East (19,371 advertising panels)

        (a) Adjusted revenue

For more information about JCDecaux, please visit jcdecaux.com.
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Communications Department: Albert Asséraf
+33 (0) 1 30 79 79 10 – albert.asseraf@jcdecaux.com

Investor Relations: Rémi Grisard
+33 (0) 1 30 79 79 93 – remi.grisard@jcdecaux.com

RECONCILIATION BETWEEN ADJUSTED FIGURES AND IFRS FIGURES

Full-year consolidated financial statements – 2022

consolidated financial statements
STATEMENT OF FINANCIAL POSITION

Assets

Equity and Liabilities

STATEMENT OF COMPREHENSIVE INCOME
INCOME STATEMENT

STATEMENT OF OTHER COMPREHENSIVE INCOME

STATEMENT OF CASH FLOWS

 

Attachment

• 09-03-23 # JCDecaux FY 2022_ENG