JCDecaux SA

Media

Flush with cash, PT raised

JCDecaux results were operationally in line with our expectations,

with an operating margin of 602m, versus our forecast of 601m, and EBIT of 317m (Berenberg: 321m). This number was depressed by 8m in asset write-downs that we had not forecast. Net income came in at 163m versus our forecast of 198m. Again, we had not forecast the 43m in total write-downs that affected the net result. On an underlying basis, net income was ahead therefore by 4%, given a better adjusted EBIT result and slightly lower interest. Managements slightly negative outlook for organic growth in Q1 2013 is in line with our estimate for a 2.3% decline. Undermining growth are a weak French market (according to comments from the broadcasters), tough comparables (Q1 2012 was +3.3%, which compares to +1.5% for FY 2012), and the effect of some nonrenewals (Oslo metro, Spanish airports). Free cash flow was stronger than anticipated, up 15% year on year. This compares with flat net income, and reflects lower-than-expected capex and a doubling of working capital inflows. JCDecaux thus ended 2012 with net cash of 35m the first time since the IPO that the company has been debt-free. This gives it two key advantages, in our view. Firstly, the company should be in a position to acquire small and medium-sized outdoor assets management noted that it is seeing more footfall to its doors in this regard. Secondly, it has the financial flexibility to invest in new opportunities (e.g. more US municipal deals along the lines of that recently announced in Chicago). Neither is captured in our forecasts, suggesting that there is potential for upgrades in future. As noted above, the Q1 outlook is in line with our forecast; we maintain our estimates for FY organic growth of 1.2%. In the meantime, the medium-term outlook is improving, with the impact of So Paolo, Russ Outdoor and Chicago yet to kick in, and with potential for further upgrades from deployment of the companys balance sheet. With a free cash flow yield of 7% in 2012, we still see value here. We reiterate our Buy rating and increase our price target to 25.

Buy
Rating system Current price Relative Price target

EUR 20.37

EUR 25.00

07/03/2013 Paris Close Market cap EUR 4,520 m Reuters JCDX.PA Bloomberg JCDecaux FP Changes made in this note Rating Buy (no change) Price target EUR 25.00 (22.00) Chg
2013e 2014e old % old % 2729 0.0 2938 0.3 Sales 351 1.3 441 1.4 EBIT 1.12 -3.7 1.40 -4.4 EPS Source: Berenberg Bank estimates 2015e old % 3122 0.3 500 1.0 1.58 -3.8

Share data

Shares outstanding (m) Enterprise value (EUR m) Daily trading volume

222 4,035 380,000

Performance data
High 52 weeks (EUR) 23.20 Low 52 weeks (EUR) 16.00 Relative performance to SXXP CAC MS 1 month -6.0 % -3.2 % 3 months 6.4 % -1.0 % 12 months -9.3 % -3.3 %

Key data
Price/book value Net gearing CAGR sales 2012-2015 CAGR EPS 2012-2015 1.7 -5.8 % 16.2 %

Business activities:
Outdoor advertising France: 23% UK: 12% Germany: 9% (estimated) Other Europe: 20% US: 7% Asia Pacific: 23% Other: 5%

Y/E 31.12., EUR m Sales EBITDA EBITA (incl assoc) Y/E net debt (average) EPS (recurring) DPS EBITDA margin EBIT margin Dividend yield EV/sales EV/EBITDA P/E FCF yield (leveraged) Source: Company data, Berenberg Bank

2011 2,463 535 348 161 1.0 0.4 21.7% 14.1% 2.2% 1.8 8.1 20.0 5.9%

2012 2,623 559 331 -34 1.0 0.4 21.3% 12.6% 2.2% 1.6 7.4 21.0 7.1%

2013E 2,729 596 355 -155 1.1 0.5 21.8% 13.0% 2.5% 1.5 6.8 18.9 6.3%

2014E 2,947 697 448 -370 1.3 0.7 23.7% 15.2% 3.2% 1.3 5.5 15.2 7.4%

2015E 3,131 763 505 -587 1.5 0.7 24.4% 16.1% 3.6% 1.2 4.7 13.4 8.2%

8 March 2013 shareholders: Non-institutional

JCDecaux family 72%

Sarah Simon

Analyst +44 20 3207 7830 sarah.simon@berenberg.com

Emma Coulby
Analyst +44 20 3207 7821 emma.coulby@berenberg.com

Laura Janssens
Marketing Analyst +44 20 3465 2639 laura.janssens@berenberg.com

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Flush with cash

FY results came in broadly in line with our expectations as far as operating margin (a quasi-EBITDA figure) was concerned. Below the EBITDA line, the company incurred 8m in asset write-downs that affected EBIT. Otherwise, EBIT would have been slightly ahead of our estimates, while at the reported net income level, a further 35m was written off from goodwill. These write-downs were associated with billboard assets in (mainly) Southern Europe. Figure 1: Forecasts vs. estimates
Estimated Revenues Operating margin EBIT Net income 2,623 601 321 198 Actual 2,623 602 317 163 Difference 0.0% 0.2% -1.2% -17.7% includes 8 million writedowns a further 35 million goodwill write-off pre-announced

Source: Company data, Berenberg estimates

In free cash flow terms in our view the only way to quantitatively compare JCDecaux to the broader media peer group, given the different approach to defining adjusted net income (JCDecaux does not add back any exceptionals or PPA charges, whereas the bulk of the peers make significant adjustments) the group grew by 15% year on year. This was thanks to flat capex (lower than originally anticipated due to some slippage into 2013) and continued contribution from working capital. We note that guidance for capex for 2013 is slightly over 200 million, which is consistent with our estimate; the combined figure for 2012 and 2013 (which would erase timing slippage) is lower than our own estimate. With stronger free cash flow than we had forecast, the group ended the year with net cash of 35m against net debt of 148m at the end of 2011, and compared to our forecast of a small net debt position. This is the first time since the groups IPO (in 2001) that it has been cash positive. We expect the group to use this to its advantage both in terms of going after new business and in consolidating the market. Below the top players, this remains extremely fragmented.

New opportunities
We have written before about the deal in Chicago and how strategically important it is. Essentially, this was the first time that a deal for billboards was done using municipal land, and this allowed JCDecaux to break the US billboard deadlock which has relied on the take-down rules associated with the Highway Beautification Act of 1965. We understand that this contract structure is interesting to other cities (also looking for additional funding) and that there may therefore be other such opportunities, which would permit JCDecaux additional organic revenue opportunities in the US market. Moreover, given the high leverage at Lamar and Clear Channel Outdoor, plus the requirement for REITs to pay 95% of their net income to shareholders (both CBS and Lamar plan to convert to REIT status), JCDecauxs competitors in North America may be constrained in terms of growth capex. This could leave JCDecaux with a relatively uncontested run at this new opportunity in the US. As a reminder, the deal with Chicago a single city is expected to generate $700m in revenues over the 20-year life of the contract. A further opportunity in the US may come in the form of a tender for New York telephone booths. That contract expires in October 2014 and we would expect JCDecaux to be interested in this tender, given

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its lack of presence in downtown New York (the company does, however, have the contract for the New York Port Authority and airports). Meanwhile, emerging markets continue to perform strongly for JCDecaux Asia Pacific was up 11.4% on an adjusted basis and Rest of World grew 20.5% in 2012. Emerging markets contributed 29% of 2012 group revenues and management is targeting 35-40% within the next three years. In this respect, it is worth highlighting the So Paolo clocks contract (which will begin generating revenues in the second half of this year) and the opportunities in the Russian market. As far as So Paolo is concerned, management has indicated that it expects the contract to generate around 1bn in annual revenues over the life of the 25-year contract. In other words, on an annualised basis, this contract itself should deliver a 1% increase in organic revenue growth. We suspect that the increase in revenues may be more rapid than we have assumed given that the World Cup is taking place in 2014. The event could provide a substantial catalyst to advertisers in Brazils largest city (nearly twice the size of Rio de Janeiro). The Russian market is also firmly in JCDecauxs sights, now that it has a 25% stake in Russ Outdoor. Management was clear that it values the partnership with VTB (a co-owner) very highly and that it would not want to front the Russian operation as local partnership was crucial. This is consistent with what was said at the time that JCDecaux walked away from buying the News Outdoor Russian assets (which became Russ Outdoor) in 2008. This partnership may prove useful given that VTB is financing the construction of a new airport in St Petersburg, an airport which will likely need an advertising sales partner. In 2013/14, there will be tenders for both street furniture and billboards in Moscow. We expect this to prove a positive source of newsflow (and organic growth) for Russ Outdoor and thus JCDecaux. As a reminder, JCDecauxs 25% share in this business would have accounted for 2.5% of the groups revenue in 2012 had the stake been consolidated for the whole of the year. Figure 2: Emerging markets now contribute 29% of revenues
35% 30% 25%

20% 15%
10% 5% 0% 2007 2008 2009 2010 2011 2012

Source: Company data

Changes to estimates
As noted above, guidance for Q1 2013 is for a slight decline in organic revenues. This is in line with our -2.3% estimate, and we are not changing our top-line assumptions for the company. However, we are tweaking our Russ Outdoor contribution given the disclosed revenues ($340m for 2012, versus our expectations of $310m) and the timing of deal closure (13 February we had

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previously assumed 1 January). Figure 3: Quarterly organic growth estimates (unchanged)

1Q13E -2.3% 2Q13E 1.2% 3Q13E 0.3% 4Q13E 4.6% 2013E 1.2%

Source: Berenberg Bank

Below the revenue line, our operating margin remains broadly in line, but we are trimming our forecasts for maintenance costs (given lower than expected charges in 2012; we expect management to continue keeping a close eye on costs in 2013). Meanwhile, depreciation changes as a function of what was charged in 2012. We note that the depreciation charge at JCDecaux (excluding write-offs) is a fairly moveable feast in terms of provisions etc., and this part of the P&L can be volatile year on year. As far as interest expense is concerned, given the much lower charge last year and further deleveraging assumed, our interest costs are slightly reduced. 2013 will see redemption of the US private placement, which has been refinanced with a 2% Eurobond. Prior to redemption, however, there will be a double cost given that the company will be servicing both the Eurobond and the USPP. Management has indicated that, including the tax on dividends that was recently introduced in France, the tax rate is likely to be around 33% for the year. This compares with our previous assumption of 32%. Overall, as shown in Figure 4, our reported EPS moves by 2.4% for 2013 and is broadly flat for 2014. On adjusted EPS, however, our numbers appear to drop given that management has identified purchase price amortisation charges as lower than we had previously assumed from the annual report (the number we used had included some other intangible charges which are not being split out). Looking at the change to free cash flow, however, which would appear to be the best guide to what our estimates have actually done, just as 2012 was well ahead of our forecasts, we also increase our estimates for 2013 and 2014 (Figure 4).

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Figure 4: Summary changes to estimates

million Year ending December Revenue Was Is Change % EBITDA Was Is Change % EPS () Was Is Change % Recurring EPS () Was Is Change % Free cash flow ( m) Was Is Change % 2011 2012 2013e 2014e

2,463 2,463 0.0%

2,623 2,623 0.0%

2,729 2,729 0.0%

2,938 2,947 0.3%

535 535 0.0%

558 559 0.2%

593 596 0.5%

691 697 0.8%

0.96 0.96 0.0%

0.89 0.73 -17.7%

0.99 1.01 2.4%

1.27 1.27 0.3%

1.09 1.02 -6.5%

1.02 0.97 -5.1%

1.12 1.08 -3.7%

1.40 1.34 -4.4%

267.50 267.50 0.0%

276.43 319.60 15.6%

269.54 285.45 5.9%

325.46 335.21 3.0%

Source: Company data, Berenberg Bank

Meanwhile, as noted above, our capex forecast is in line with guidance of a bit more than 200m. Other changes to the cash flow statement essentially stem from the balance sheet changes noted above.

Valuation
Based on the aforementioned changes to our forecasts, we are increasing our price target from 22 to 25. This is based on DCF (which we have now rolled forward one year to the end of 2013), using a WACC of 8.6% and terminal free cash flow growth of 2%. We apply a discount of 10% to the result to reflect the cyclical risk inherent in the business. Looking at the company on the basis of earnings, we note, as in previous research, that JCDecaux does not provide an EPS that is adjusted for purchase price amortisation (PPA). However, we calculate an adjusted figure using the figures disclosed for the PPA charge, so that JCDecauxs P/E is comparable to the rest of the sector, which does provide an adjusted number. We note, however, that JCDecaux does not adjust for anything else e.g. restructuring, acquisition costs or derivative charges/income. Therefore even adjusted P/E is not particularly comparable. Free cash flow, therefore, seems to us to be a better measure of comparability. On this basis, as shown in Figure 5, JCDecaux trades on a 7.5% FCF yield for 2012 and 6.7% for 2013 (the drop is due to increased capex associated with the Chicago and So Paolo contracts). On an unleveraged basis, the figures are 7.9% and 7.3% respectively.

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Figure 5: Current trading multiples

Year to December JC Decaux EV/Sales P/E - reported P/E - adjusted FCF Yield Unleveraged FCF yield EV/EBITDA EV/EBIT Dividend yield 2010 2011 2012 2013E 2014E 2015E

1.9 25.8 21.3 7.1% 7.4% 8.9 16.0 0.0%

1.7 21.0 18.8 6.0% 6.4% 8.0 13.1 2.2%

1.6 27.5 19.7 7.1% 7.9% 7.4 13.3 2.2%

1.5 19.9 17.8 6.4% 7.3% 6.7 12.0 2.5%

1.3 15.8 14.3 7.5% 9.0% 5.4 8.9 3.2%

1.1 13.8 12.6 8.3% 10.5% 4.7 7.4 3.7%

Source: Company data, Berenberg Bank

With a good long-term outlook in our view, and potential for upgrades from both acquisitions and new contract wins, we believe that this is still attractive valuation for a great franchise stock regardless of what the P/E multiple looks like. We remind investors that JCDecaux does not adjust its earnings for any of the costs which its peers habitually exclude from their headline earnings numbers.

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Financials
Profit and loss account
Year-end December (EUR m) Sales EBITDA Depreciation EBITA Amortisation of intangible assets Associates earnings EBIT Financial result Income on ordinary activities before taxes EBT Taxes Minority interest Net income (net of minority interest) Source: Company data, Berenberg Bank estimates 2011 2,463 535 -186 349 0 15 348 -200 309 -94 -3 213 2012 2,623 559 -191 368 0 17 331 -214 296 -92 -3 163 2013e 2,729 596 -197 399 0 18 355 -215 331 -103 -3 225 2014e 2,947 697 -206 491 0 19 448 -162 418 -131 -4 283 2015e 3,131 763 -213 550 0 20 505 -114 479 -151 -4 324

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Balance sheet
Year-end December (EUR m) Intangible assets Property, plant and equipment Financial assets Fixed Assets Inventories Accounts receivable Liquid assets Other accruals Current Assets TOTAL Shareholders' equity Minority interest Long-term debt Pensions provisions Other provisions Short-term debt Accounts payable Other liabilities Current liabilities TOTAL Source: Company data, Berenberg Bank estimates 2011 1,707 1,139 245 3,092 95 738 289 18 1,139 4,231 2,494 -24 358 0 427 81 823 73 976 4,231 2012 1,659 1,116 260 3,035 99 730 459 24 1,311 4,347 2,568 -42 140 0 459 274 842 106 1,222 4,347 2013e 1,637 1,078 333 3,049 102 759 820 24 1,705 4,754 2,681 -48 640 0 476 13 871 120 1,004 4,754 2014e 1,615 1,032 350 2,997 108 820 1,035 25 1,987 4,984 2,820 -54 640 0 494 13 918 153 1,084 4,984 2015e 1,593 1,000 367 2,960 113 871 1,252 26 2,263 5,222 2,979 -60 640 0 511 13 966 173 1,152 5,222

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Cash flow statement

EUR m Net profit/loss Depreciation of fixed assets Amortisation of goodwill Other Cash flow from operations before changes in w/c Change in working capital Maintenance capex Cash flow from operating activities after maintenance Payments for acquisitions Financial investments Income from asset disposals Cash flow from investing activities Cash flow before financing Purchase of own shares Dividends paid Others Cash flow from financing activities Increase/decrease in liquid assets Source: Company data, Berenberg Bank estimates 2011 213 186 0 28 268 22 -181 268 -72 5 21 -46 222 3 -8 -133 -138 84 2012 163 191 0 94 320 43 -171 320 -22 -12 18 -16 303 4 -106 -32 -133 170 2013e 225 197 0 71 285 -4 -203 285 -58 0 0 -58 228 0 -106 240 133 361 2014e 283 206 0 70 335 -20 -203 335 0 0 0 0 335 0 -120 0 -120 215 2015e 324 213 0 71 372 -10 -226 372 0 0 0 0 372 0 -154 0 -154 217

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Contacts: Investment Banking

Equity Research
BANKS Nick Anderson James Chappell Andrew Lowe Eleni Papoula BEVERAGES Philip Morrisey Josh Puddle BUSINESS SERVICES William Foggon Simon Mezzanotte Arash Roshan Zamir Konrad Zomer CAPITAL GOODS Frederik Bitter Benjamin Glaeser William Mackie Margaret Paxton Alexander Virgo Felix Wienen CHEMICALS Jade Barkett Asad Farid John Philipp Klein Jaideep Pandya CONSTRUCTION Chris Moore Robert Muir Michael Watts DIVERSIFIED FINANCIALS Pras Jeyanandhan Richard Perrott +44 (0) 20 3207 7838 +44 (0) 20 3207 7844 +44 (0) 20 3465 2743 +44 (0) 20 3465 2741 ECONOMICS Dr. Holger Schmieding Dr. Christian Schulz Robert Wood FOOD MANUFACTURING Fintan Ryan James Targett +44 (0) 20 3207 7889 +44 (0) 20 3207 7878 +44 (0) 20 3207 7822 E-mail: firstname.lastname@berenberg.com; Internet www.berenberg.de MID-CAP GENERAL Gunnar Cohrs Bjoern Lippe Anna Patrice Alexandra Schlegel Stanislaus von Thurn und Taxis REAL ESTATE Kai Klose Estelle Weingrod TECHNOLOGY Adnaan Ahmad Sebastian Grabert Daud Khan Ali Khwaja Tammy Qiu TELECOMMUNICATIONS Wassil El Hebil Usman Ghazi Stuart Gordon Laura Janssens Paul Marsch Barry Zeitoune TOBACCO Erik Bloomquist Kate Kalashnikova UTILITIES Robert Chantry Andrew Fisher Oliver Salvesen Lawson Steele +44 (0) 20 3207 7894 +44 (0) 20 3207 7845 +44 (0) 20 3207 7863 +44 (0) 20 3207 7896 +44 (0) 20 3207 2631

+44 (0) 20 3207 7892 +44 (0) 20 3207 7881

+44 (0) 20 3465 2748 +44 (0) 20 3207 7873

+44 (0) 20 3207 7882 +44 (0) 20 3207 7917 +44 (0) 20 3465 2636 +44 (0) 20 3207 7920

GENERAL RETAIL & LUXURY GOODS Bassel Choughari +44 (0) 20 3465 2675 John Guy +44 (0) 20 3465 2674 HEALTHCARE Scott Bardo Alistair Campbell Charles Cooper Louise Hinds Adrian Howd Tom Jones

+44 (0) 20 3207 7888 +44 (0) 20 3207 7931

+44 (0) 20 3207 7916 +44 (0) 20 3207 7918 +44 (0) 20 3207 7837 +44 (0) 20 3207 7934 +44 (0) 20 3207 7856 +44 (0) 20 3207 7915

+44 (0) 20 3207 7869 +44 (0) 20 3207 7876 +44 (0) 20 3465 2637 +44 (0) 20 3465 2747 +44 (0) 20 3207 7874 +44 (0) 20 3207 7877

+44 (0) 20 3207 7851 +44 (0) 20 3207 7834 +44 (0) 20 3465 2638 +44 (0) 20 3207 7852 +44 (0) 20 3465 2673

HOUSEHOLD & PERSONAL CARE Seth Peterson +44 (0) 20 3207 7891 Andrew Steele +44 (0) 20 3207 7926 INSURANCE Tom Carstairs Peter Eliot Kai Mueller Matthew Preston Sami Taipalus MEDIA Robert Berg Emma Coulby Laura Janssens Sarah Simon

+44 (0) 20 3207 7862 +44 (0) 20 3207 7824 +44 (0) 20 3207 7858 +44 (0) 20 3465 2639 +44 (0) 20 3207 7857 +44 (0) 20 3207 7859

+44 (0) 20 3207 7937 +44 (0) 20 3207 7932 +44 (0) 20 3207 7930 +44 (0) 20 3207 7890

+44 (0) 20 3207 7823 +44 (0) 20 3207 7880 +44 (0) 20 3207 7800 +44 (0) 20 3207 7913 +44 (0) 20 3207 7866

+44 (0) 20 3207 7870 +44 (0) 20 3465 2665

+44 (0) 20 3465 2737 +44 (0) 20 3207 7860 +44 (0) 20 3207 7928

+44 (0) 20 3207 7899 +44 (0) 20 3207 7925

+44 (0) 20 3207 7900 +44 (0) 20 3207 7821 +44 (0) 20 3465 2639 +44 (0) 20 3207 7830

+44 (0) 20 3207 7861 +44 (0) 20 3207 7937 +44 (0) 20 3207 7818 +44 (0) 20 3207 7887

Sales
Specialist Sales CONSUMER Rupert Trotter INSURANCE Trevor Moss LONDON Miel Bakker John von Berenberg-Consbruch Ronald Bernette Matt Chawner Toby Flaux Sean Heath David Hogg Ben Hutton James Matthews David Mortlock Peter Nichols George Smibert Max von Doetinchem Paul Walker E-mail: firstname.lastname@berenberg.com; Internet www.berenberg.de +44 (0) 20 3207 7815 HEALTHCARE Frazer Hall TECHNOLOGY Jean Beaubois HAMBURG Susette Mantzel Marco Weiss PARIS Christophe Choquart Dalila Farigoule Clmence La Clavire-Peyraud Olivier Thibert ZURICH Stephan Hofer Carsten Kinder Gianni Lavigna Benjamin Stillfried CRM FRANKFURT Michael Brauburger Nina Buechs Andr Grosskurth Boris Koegel Joachim Kopp LONDON Greg Swallow Laura Cooper CORPORATE ACCESS LONDON Patricia Nehring +44 (0) 20 3207 7833 +44 (0) 20 3207 7806 +44 (0) 20 3207 7875 UTILITIES Benita Barretto INDUSTRIALS Chris Armstrong Kaj Alftan Sales Trading HAMBURG Paul Dontenwill Christian Endras Gregor Labahn Chris McKeand Fin Schaffer Lars Schwartau Marvin Schweden Tim Storm Philipp Wiechmann LONDON Stewart Cook Simon Messman Stephen O'Donohoe PARIS Sylvain Granjoux EVENTS LONDON Natalie Meech Charlotte Kilby Hannah Whitehead +44 (0) 20 3207 7829

+44 (0) 20 3207 7893

+44 (0) 20 3207 7835

+44 (0) 20 3207 7809 +44 (0) 20 3207 7879

+44 (0) 20 3207 7808 +44 (0) 20 3207 7805 +44 (0) 20 3207 7828 +44 (0) 20 3207 7847 +44 (0) 20 3465 2745 +44 (0) 20 3465 2742 +44 (0) 20 3465 2628 +44 (0) 20 3207 7804 +44 (0) 20 3207 7807 +44 (0) 20 3207 7850 +44 (0) 20 3207 7810 +44 (0) 20 3207 7911 +44 (0) 20 3207 7826 +44 (0) 20 3465 2632

+49 (0) 40 350 60 694 +49 (0) 40 350 60 719

+33 (0) 1 5844 9508 +33 (0) 1 5844 9510 +33 (0) 1 5844 9521 +33 (0) 1 5844 9512

+49 (0) 40 350 60 563 +49 (0) 40 350 60 359 +49 (0) 40 350 60 571 +49 (0) 40 350 60 798 +49 (0) 40 350 60 596 +49 (0) 40 350 60 450 +49 (0) 40 350 60 576 +49 (0) 40 350 60 415 +49 (0) 40 350 60 346

+41 (0) 44 283 2029 +41 (0) 44 283 2024 +41 (0) 44 283 2038 +41 (0) 44 283 2033

+44 (0) 20 3465 2752 +44 (0) 20 3465 2754 +44 (0) 20 3465 2753

+49 (0) 69 91 30 90 741 +49 (0) 69 91 30 90 735 +49 (0) 69 91 30 90 734 +49 (0) 69 91 30 90 740 +49 (0) 69 91 30 90 742

+33 (0) 1 5844 9509

+44 (0) 20 3207 7811

+44 (0) 20 3207 7831 +44 (0) 20 3207 7832 +44 (0) 20 3207 7922

US Sales
BERENBERG CAPITAL MARKETS LLC Member FINRA & SIPC Andrew Holder Colin Andrade Cathal Carroll Burr Clark Julie Doherty +1 (617) 292 8222 +1 (617) 292 8230 +1 (646) 445 7206 +1 (617) 292 8282 +1 (617) 292 8228

E-mail: firstname.lastname@berenberg-us.com Kelleigh Faldi Kieran O'Sullivan Emily Mouret Jonathan Saxon +1 (617) 292 8288 +1 (617) 292 8292 +1 (646) 445 7204 +1 (646) 445 7202

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Please note that the use of this research report is subject to the conditions and restrictions set forth in the General investment-related disclosures and the Legal disclaimer at the end of this document. For analyst certification and remarks regarding foreign investors and country-specific disclosures, please refer to the respective paragraph at the end of this document.

Disclosures in respect of section 34b of the German Securities Trading Act (Wertpapierhandelsgesetz WpHG)
Company JCDecaux SA (1) (2) (3) (4) (5) (6) Disclosures no disclosures

Berenberg Bank or its affiliate(s) was Lead Manager or Co-Lead Manager over the previous 12 months of a public offering of this company. Berenberg Bank acts as Designated Sponsor for this company. Over the previous 12 months, Berenberg Bank and/or its affiliate(s) has effected an agreement with this company for investment banking services or received compensation or a promise to pay from this company for investment banking services. Berenberg Bank and/or its affiliate(s) holds 5% or more of the share capital of this company. Berenberg Bank holds a trading position in shares of this company. Berenberg Bank and/or its affiliate(s) holds a net short position of 1% or more of the share capital of this company, calculated by methods required by German law as of the last trading day of the past month.

Historical price target and rating changes for JCDecaux SA in the last 12 months (full coverage) Date 19 March 12 10 May 12 19 July 12 30 July 12 22 October 12 17 January 13 08 March 13 Price target - EUR 24.30 24.00 23.00 21.00 20.50 22.00 25.00 Rating Hold Buy Buy Buy Buy Buy Buy Initiation of coverage 04 January 06

Berenberg distribution of ratings and in proportion to investment banking services Buy Sell Hold 45.45 % 16.77 % 37.78 % 69.23 % 3.85 % 26.92 %

Valuation basis/rating key

The recommendations for companies analysed by Berenberg Banks equity research department are either made on an absolute basis (absolute rating system) or relative to the sector (relative rating system), which is clearly stated in the financial analysis. For both absolute and relative rating system, the three-step rating key Buy, Hold and Sell is applied. For a detailed explanation of our rating system, please refer to our website at http://www.berenberg.de/research.html?&L=1 NB: During periods of high market, sector or stock volatility, or in special situations, the rating system criteria as described on our website may be breached temporarily.

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Competent supervisory authority

Bundesanstalt fr Finanzdienstleistungsaufsicht -BaFin- (Federal Financial Supervisory Authority), Graurheindorfer Strae 108, 53117 Bonn and Lurgiallee 12, 60439 Frankfurt am Main

General investment-related disclosures

Joh. Berenberg, Gossler & Co. KG (Berenberg Bank) has made every effort to carefully research all information contained in this financial analysis. The information on which the financial analysis is based has been obtained from sources which we believe to be reliable such as, for example, Thomson Reuters, Bloomberg and the relevant specialised press as well as the company which is the subject of this financial analysis. Only that part of the research note is made available to the issuer (who is the subject of this analysis) which is necessary to properly reconcile with the facts. Should this result in considerable changes a reference is made in the research note. Opinions expressed in this financial analysis are our current opinions as of the issuing date indicated on this document. The companies analysed by Berenberg Bank are divided into two groups: those under full coverage (regular updates provided); and those under screening coverage (updates provided as and when required at irregular intervals). The functional job title of the person/s responsible for the recommendations contained in this report is Equity Research Analyst unless otherwise stated on the cover. The following internet link provides further remarks on our financial analyses: http://www.berenberg.de/research.html?&L=1&no_cache=1

Legal disclaimer
This document has been prepared by Berenberg Bank. This document does not claim completeness regarding all the information on the stocks, stock markets or developments referred to in it. On no account should the document be regarded as a substitute for the recipient procuring information for himself/herself or exercising his/her own judgements. The document has been produced for information purposes for institutional clients or market professionals. Private customers, into whose possession this document comes, should discuss possible investment decisions with their customer service officer as differing views and opinions may exist with regard to the stocks referred to in this document. This document is not a solicitation or an offer to buy or sell the mentioned stock. The document may include certain descriptions, statements, estimates, and conclusions underlining potential market and company development. These reflect assumptions, which may turn out to be incorrect. Berenberg Bank and/or its employees accept no liability whatsoever for any direct or consequential loss or damages of any kind arising out of the use of this document or any part of its content. Berenberg Bank and/or its employees may hold, buy or sell positions in any securities mentioned in this document, derivatives thereon or related financial products. Berenberg Bank and/or its employees may underwrite issues for any securities mentioned in this document, derivatives thereon or related financial products or seek to perform capital market or underwriting services.

Analyst certification

I, Sarah Simon, hereby certify that all of the views expressed in this report accurately reflect my personal views about any and all of the subject securities or issuers discussed herein. In addition, I hereby certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this research report, nor is it tied to any specific investment banking transaction performed by Berenberg Bank or its affiliates.

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JCDecaux SA
Media

I, Emma Coulby, hereby certify that all of the views expressed in this report accurately reflect my personal views about any and all of the subject securities or issuers discussed herein. In addition, I hereby certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this research report, nor is it tied to any specific investment banking transaction performed by Berenberg Bank or its affiliates.

Remarks regarding foreign investors

The preparation of this document is subject to regulation by German law. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

United Kingdom
This document is meant exclusively for institutional investors and market professionals, but not for private customers. It is not for distribution to or the use of private investors or private customers.

United States of America

This document has been prepared exclusively by Berenberg Bank. Although Berenberg Capital Markets LLC, an affiliate of Berenberg Bank and registered US broker-dealer, distributes this document to certain customers, Berenberg Capital Markets LLC does not provide input into its contents, nor does this document constitute research of Berenberg Capital Markets LLC. In addition, this document is meant exclusively for institutional investors and market professionals, but not for private customers. It is not for distribution to or the use of private investors or private customers. This document is classified as objective for the purposes of FINRA rules. Please contact Berenberg Capital Markets LLC (+1 617.292.8200), if you require additional information.

Third-party research disclosures Company

JCDecaux SA (1) (2) (3) (4) (5)

Disclosures
no disclosures

Berenberg Capital Markets LLC owned 1% or more of the outstanding shares of any class of the subject company by the end of the prior month.* Over the previous 12 months, Berenberg Capital Markets LLC has managed or co-managed any public offering for the subject company.* Berenberg Capital Markets LLC is making a market in the subject securities at the time of the report. Berenberg Capital Markets LLC received compensation for investment banking services in the past 12 months, or expects to receive such compensation in the next 3 months.* There is another potential conflict of interest of the analyst or Berenberg Capital Markets LLC, of which the analyst knows or has reason to know at the time of publication of this research report.

* For disclosures regarding affiliates of Berenberg Capital Markets LLC please refer to the Disclosures in respect of section 34b of the German Securities Trading Act (Wertpapierhandelsgesetz WpHG) section above.

Copyright

Berenberg Bank reserves all the rights in this document. No part of the document or its content may be rewritten, copied, photocopied or duplicated in any form by any means or redistributed without Berenberg Banks prior written consent. June 2012 Berenberg Bank

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