2013 mar 8 — jcdecaux sa

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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 depressedby 8m in asset write-downs that we had not forecast. Net incomecame in at 163m versus our forecast of 198m. Again, we had notforecast the 43m in total write-downs that affected the net result. Onan underlying basis, net income was ahead therefore by 4%, given abetter adjusted EBIT result and slightly lower interest.

Managements slightly negative outlook for organic growth in Q12013 is in line with our estimate for a 2.3% decline. Undermininggrowth are a weak French market (according to comments from thebroadcasters), tough comparables (Q1 2012 was +3.3%, whichcompares to +1.5% for FY 2012), and the effect of some non-renewals (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-expectedcapex and a doubling of working capital inflows. JCDecaux thusended 2012 with net cash of 35m the first time since the IPO thatthe company has been debt-free.

This gives it two key advantages, in our view. Firstly, the companyshould be in a position to acquire small and medium-sized outdoorassets management noted that it is seeing more footfall to its doorsin this regard. Secondly, it has the financial flexibility to invest in newopportunities (e.g. more US municipal deals along the lines of thatrecently 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; wemaintain our estimates for FY organic growth of 1.2%. In themeantime, the medium-term outlook is improving, with the impact ofSo Paolo, Russ Outdoor and Chicago yet to kick in, and withpotential for further upgr ades from deployment of the companysbalance 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.

BuyRating system

Current priceEUR 20.37

Relative

Price targetEUR 25.00

07/03/2013 Paris CloseMarket cap EUR 4,520 mReuters CDX.PABloomberg CDecaux FPChanges made in this noteRating Buy (no change)Price target EUR 25.00 (22.00)

Chg 2013e 2014e 2015eold % old % old %

Sales 2729 0.0 2938 0.3 3122 0.3EBIT 351 1.3 441 1.4 500 1.0EPS 1.12 -3.7 1.40 -4.4 1.58 -3.8Source: Berenberg Bank estimates Share data Shares outstanding (m) 222Enterprise value (EUR m) 4,035Daily trading volume 380,000Performance data High 52 weeks (EUR) 23.20Low 52 weeks (EUR) 16.00Relative performance to SXXP CAC MS1 month -6.0 % -3.2 %3 months 6.4 % -1.0 %12 months -9.3 % -3.3 %Key data Price/book value 1.7Net gearing -5.8 %CAGR sales 2012-2015 -

CAGR EPS 2012-2015 16.2 %

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

8 March 2013

Sarah SimonAnalyst+44 20 3207 [email protected]

Emma Coulby Analyst+44 20 3207 [email protected]

Laura Janssens Marketing Analyst+44 20 3465 [email protected]

Y/E 31.12., EURm 2011 2012 2013E 2014E 2015ESales 2,463 2,623 2,729 2,947 3,131EBITDA 535 559 596 697 763EBITA (incl assoc) 348 331 355 448 505Y/E net debt (average) 161 -34 -155 -370 -587EPS (recurring) 1.0 1.0 1.1 1.3 1.5DPS 0.4 0.4 0.5 0.7 0.7EBITDA margin 21.7% 21.3% 21.8% 23.7% 24.4%EBIT margin 14.1% 12.6% 13.0% 15.2% 16.1%Dividend yield 2.2% 2.2% 2.5% 3.2% 3.6%EV/sales 1.8 1.6 1.5 1.3 1.2EV/EBITDA 8.1 7.4 6.8 5.5 4.7P/E 20.0 21.0 18.9 15.2 13.4FCF yield (leveraged) 5.9% 7.1% 6.3% 7.4% 8.2%

Source: Company data, Berenberg Bank


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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 companyincurred 8m in asset write-downs that affected EBIT. Otherwise, EBIT wouldhave been slightly ahead of our estimates, while at the reported net income level, afurther 35m was written off from goodwill. These write-downs were associated

with billboard assets in (mainly) Southern Europe.

Figure 1: Forecasts vs. estimates

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 todefining adjusted net income (JCDecaux does not add back any exceptionals orPPA charges, whereas the bulk of the peers make significant adjustments) thegroup grew by 15% year on year. This was thanks to flat capex (lower thanoriginally anticipated due to some slippage into 2013) and continued contributionfrom 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 2012and 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 withnet cash of 35m against net debt of 148m at the end of 2011, and compared toour forecast of a small net debt position. This is the first time since the groupsIPO (in 2001) that it has been cash positive. We expect the group to use this to itsadvantage both in terms of going after new business and in consolidating themarket. Below the top players, this remains extremely fragmented.

New opportunities

We have written before about the deal in Chicago and how strategically importantit is. Essentially, this was the first time that a deal for billboards was done usingmunicipal land, and this allowed JCDecaux to break the US billboard deadlock

which has relied on the take-down rules associated with the HighwayBeautification Act of 1965. We understand that this contract structure is interestingto other cities (also looking for additional funding) and that there may therefore beother such opportunities, which would permit JCDecaux additional organicrevenue opportunities in the US market.

Moreover, given the high leverage at Lamar and Clear Channel Outdoor, plus therequirement for REITs to pay 95% of their net income to shareholders (both CBSand 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 inthe form of a tender for New York telephone booths. That contract expires inOctober 2014 and we would expect JCDecaux to be interested in this tender, given

Estimated Actual Difference

Revenues 2,623 2,623 0.0% pre-announcedOperating margin 601 602 0.2%

EBIT 321 317 -1.2% includes 8 million writedowns

Net income 198 163 -17.7% a further 35 million goodwill write-off


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previously assumed 1 January).

Figure 3: Quarterly organic growth estimates(unchanged)

Source: Berenberg Bank

Below the revenue line, our operating margin remains broadly in line, but we aretrimming our forecasts for maintenance costs (given lower than expected chargesin 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. Wenote that the depreciation charge at JCDecaux (excluding write-offs) is a fairlymoveable 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 andfurther deleveraging assumed, our interest costs are slightly reduced. 2013 will seeredemption 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 thecompany will be servicing both the Eurobond and the USPP.

Management has indicated that, including the tax on dividends that was recentlyintroduced in France, the tax rate is likely to be around 33% for the year. Thiscompares 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. Onadjusted EPS, however, our numbers appear to drop given that management has

identified purchase price amortisation charges as lower than we had previouslyassumed from the annual report (the number we used had included some otherintangible charges which are not being split out). Looking at the change to freecash flow, however, which would appear to be the best guide to what our estimateshave actually done, just as 2012 was well ahead of our forecasts, we also increaseour estimates for 2013 and 2014 (Figure 4).

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


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Figure 5: Current trading multiples

Source: Company data, Berenberg Bank

With a good long-term outlook in our view, and potential for upgrades from bothacquisitions and new contract wins, we believe that this is still attractive valuationfor a great franchise stock regardless of what the P/E multiple looks like. Weremind investors that JCDecaux does not adjust its earnings for any of the costs

which its peers habitually exclude from their headline earnings numbers.

Year to December 2010 2011 2012 2013E 2014E 2015E

JC DecauxEV/Sales 1.9 1 .7 1.6 1.5 1.3 1.1P/E - reported 25.8 21.0 27.5 19.9 15.8 13.8P/E - adjusted 21.3 18.8 19.7 17.8 14.3 12.6FCF Yield 7.1% 6.0% 7.1% 6 .4% 7 .5% 8 .3%Unleveraged FCF yield 7.4% 6.4% 7.9% 7.3% 9.0% 10.5%EV/EBITDA 8.9 8.0 7.4 6.7 5.4 4.7EV/EBIT 16.0 13.1 13.3 12.0 8.9 7.4Dividend yield 0.0% 2.2% 2.2% 2.5% 3.2% 3.7%


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Financials

Profit and loss account

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


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Balance sheet

Year-end December (EUR m) 2011 2012 2013e 2014e 2015eIntangible assets 1,707 1,659 1,637 1,615 1,593Property, plant and equipment 1,139 1,116 1,078 1,032 1,000Financial assets 245 260 333 350 367Fixed Assets 3,092 3,035 3,049 2,997 2,960Inventories 95 99 102 108 113Accounts receivable 738 730 759 820 871Liquid assets 289 459 820 1,035 1,252Other accruals 18 24 24 25 26Current Assets 1,139 1,311 1,705 1,987 2,263TOTAL 4,231 4,347 4,754 4,984 5,222Shareholders' equity 2,494 2,568 2,681 2,820 2,979Minority interest -24 -42 -48 -54 -60Long-term debt 358 140 640 640 640

Pensions provisions 0 0 0 0 0Other provisions 427 459 476 494 511Short-term debt 81 274 13 13 13Accounts payable 823 842 871 918 966Other liabilities 73 106 120 153 173Current liabilities 976 1,222 1,004 1,084 1,152TOTAL 4,231 4,347 4,754 4,984 5,222Source: Company data, Berenberg Bank estimates


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Cash flow statement

EUR m 2011 2012 2013e 2014e 2015eNet profit/loss 213 163 225 283 324Depreciation of fixed assets 186 191 197 206 213Amortisation of goodwill 0 0 0 0 0Other 28 94 71 70 71Cash flow from operations before changes in w/c 268 320 285 335 372Change in working capital 22 43 -4 -20 -10Maintenance capex -181 -171 -203 -203 -226Cash flow from operating activities after maintenance 268 320 285 335 372Payments for acquisitions -72 -22 -58 0 0Financial investments 5 -12 0 0 0Income from asset disposals 21 18 0 0 0Cash flow from investing activities -46 -16 -58 0 0Cash flow before financing 222 303 228 335 372

Purchase of own shares 3 4 0 0 0Dividends paid -8 -106 -106 -120 -154Others -133 -32 240 0 0Cash flow from financing activities -138 -133 133 -120 -154Increase/decrease in liquid assets 84 170 361 215 217Source: Company data, Berenberg Bank estimates


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Contacts: Investment Banking

Equity Research E-mail: [email protected]; Internet www.berenberg.deBANKS ECONOMICS MID-CAP GENERALNick Anderson +44 (0) 20 3207 7838 Dr. Holger Schmieding +44 (0) 20 3207 7889 Gunnar Cohrs +44 (0) 20 3207 7894 James Chappell +44 (0) 20 3207 7844 Dr. Christian Schulz +44 (0) 20 3207 7878 Bjoern Lippe +44 (0) 20 3207 7845Andrew Lowe +44 (0) 20 3465 2743 Robert Wood +44 (0) 20 3207 7822 Anna Patrice +44 (0) 20 3207 7863Eleni Papoula +44 (0) 20 3465 2741 Alexandra Schlegel +44 (0) 20 3207 7896

FOOD MANUFACTURING Stanislaus von Thurn und Taxis +44 (0) 20 3207 2631BEVERAGES Fintan Ryan +44 (0) 20 3465 2748Philip Morrisey +44 (0) 20 3207 7892 James Targett +44 (0) 20 3207 7873 REAL ESTATE Josh Puddle +44 (0) 20 3207 7881 Kai Klose +44 (0) 20 3207 7888

GENERAL RETAIL & LUXURY GOODS Estelle Weingrod +44 (0) 20 3207 7931BUSINESS SERVICES Bassel Choughari +44 (0) 20 3465 2675William Foggon +44 (0) 20 3207 7882 John Guy +44 (0) 20 3465 2674 TECHNOLOGYSimon Mezzanotte +44 (0) 20 3207 7917 Adnaan Ahmad +44 (0) 20 3207 7851Arash Roshan Zamir +44 (0) 20 3465 2636 HEALTHCARE Sebastian Grabert +44 (0) 20 3207 7834Konrad Zomer +44 (0) 20 3207 7920 Scott Bardo +44 (0) 20 3207 7869 Daud Khan +44 (0) 20 3465 2638

Alistair Campbell +44 (0) 20 3207 7876 Ali Khwaja +44 (0) 20 3207 7852CAPITAL GOODS Charles Cooper +44 (0) 20 3465 2637 Tammy Qiu +44 (0) 20 3465 2673

Frederik Bitter +44 (0) 20 3207 7916 Louise Hinds +44 (0) 20 3465 2747Benjamin Glaeser +44 (0) 20 3207 7918 Adrian Howd +44 (0) 20 3207 7874 TELECOMMUNICATIONSWilliam Mackie +44 (0) 20 3207 7837 Tom Jones +44 (0) 20 3207 7877 Wassil El Hebil +44 (0) 20 3207 7862Margaret Paxton +44 (0) 20 3207 7934 Usman Ghazi +44 (0) 20 3207 7824Alexander Virgo +44 (0) 20 3207 7856 HOUSEHOLD & PERSONAL CARE Stuart Gordon +44 (0) 20 3207 7858Felix Wienen +44 (0) 20 3207 7915 Seth Peterson +44 (0) 20 3207 7891 Laura Janssens +44 (0) 20 3465 2639

Andrew Steele +44 (0) 20 3207 7926 Paul Marsch +44 (0) 20 3207 7857CHEMICALS Barry Zeitoune +44 (0) 20 3207 7859 Jade Barkett +44 (0) 20 3207 7937 INSURANCEAsad Farid +44 (0) 20 3207 7932 Tom Carstairs +44 (0) 20 3207 7823 TOBACCO John Philipp Klein +44 (0) 20 3207 7930 Peter Eliot +44 (0) 20 3207 7880 Erik Bloomquist +44 (0) 20 3207 7870 Jaideep Pandya +44 (0) 20 3207 7890 Kai Mueller +44 (0) 20 3207 7800 Kate Kalashnikova +44 (0) 20 3465 2665

Matthew Preston +44 (0) 20 3207 7913CONSTRUCTION Sami Taipalus +44 (0) 20 3207 7866 UTILITIESChris Moore +44 (0) 20 3465 2737 Robert Chantry +44 (0) 20 3207 7861Robert Muir +44 (0) 20 3207 7860 MEDIA Andrew Fisher +44 (0) 20 3207 7937Michael Watts +44 (0) 20 3207 7928 Robert Berg +44 (0) 20 3207 7900 Oliver Salvesen +44 (0) 20 3207 7818

Emma Coulby +44 (0) 20 3207 7821 Lawson Steele +44 (0) 20 3207 7887DIVERSIFIED FINANCIALS Laura Janssens +44 (0) 20 3465 2639Pras Jeyanandhan +44 (0) 20 3207 7899 Sarah Simon +44 (0) 20 3207 7830Richard Perrott +44 (0) 20 3207 7925

SalesSpecialist Sales E-mail: [email protected]; Internet www.berenberg.de

CONSUMER HEALTHCARE UTILITIESRupert Trotter +44 (0) 20 3207 7815 Frazer Hall +44 (0) 20 3207 7875 Benita Barretto +44 (0) 20 3207 7829

INSURANCE TECHNOLOGY INDUSTRIALSTrevor Moss +44 (0) 20 3207 7893 Jean Beaubois +44 (0) 20 3207 7835 Chris Armstrong +44 (0) 20 3207 7809

Kaj Alftan +44 (0) 20 3207 7879LONDON HAMBURGMiel Bakker +44 (0) 20 3207 7808 Susette Mantzel +49 (0) 40 350 60 694 Sales Trading John von Berenberg-Consbruch +44 (0) 20 3207 7805 Marco Weiss +49 (0) 40 350 60 719 HAMBURGRonald Bernette +44 (0) 20 3207 7828 Paul Dontenwill +49 (0) 40 350 60 563Matt Chawner +44 (0) 20 3207 7847 PARIS Christian Endras +49 (0) 40 350 60 359Toby Flaux +44 (0) 20 3465 2745 Christophe Choquart +33 (0) 1 5844 9508 Gregor Labahn +49 (0) 40 350 60 571Sean Heath +44 (0) 20 3465 2742 Dalila Farigoule +33 (0) 1 5844 9510 Chris McKeand +49 (0) 40 350 60 798David Hogg +44 (0) 20 3465 2628 Clmence La Clavire-Peyraud +33 (0) 1 5844 9521 Fin Schaffer +49 (0) 40 350 60 596Ben Hutton +44 (0) 20 3207 7804 Olivier Thibert +33 (0) 1 5844 9512 Lars Schwartau +49 (0) 40 350 60 450 James Matthews +44 (0) 20 3207 7807 Marvin Schweden +49 (0) 40 350 60 576David Mortlock +44 (0) 20 3207 7850 ZURICH Tim Storm +49 (0) 40 350 60 415Peter Nichols +44 (0) 20 3207 7810 Stephan Hofer +41 (0) 44 283 2029 Philipp Wiechmann +49 (0) 40 350 60 346George Smibert +44 (0) 20 3207 7911 Carsten Kinder +41 (0) 44 283 2024Max von Doetinchem +44 (0) 20 3207 7826 Gianni Lavigna +41 (0) 44 283 2038 LONDONPaul Walker +44 (0) 20 3465 2632 Benjamin Stillfried +41 (0) 44 283 2033 Stewart Cook +44 (0) 20 3465 2752

Simon Messman +44 (0) 20 3465 2754CRM Stephen O'Donohoe +44 (0) 20 3465 2753LONDON

FRANKFURT Greg Swallow +44 (0) 20 3207 7833 PARISMichael Brauburger +49 (0) 69 91 30 90 741 Laura Cooper +44 (0) 20 3207 7806 Sylvain Granjoux +33 (0) 1 5844 9509Nina Buechs +49 (0) 69 91 30 90 735Andr Grosskurth +49 (0) 69 91 30 90 734 CORPORATE ACCESS EVENTSBoris Koegel +49 (0) 69 91 30 90 740 LONDON LONDON Joachim Kopp +49 (0) 69 91 30 90 742 Patricia Nehring +44 (0) 20 3207 7811 Natalie Meech +44 (0) 20 3207 7831

Charlotte Kilby +44 (0) 20 3207 7832Hannah Whitehead +44 (0) 20 3207 7922

US Sales E-mail: [email protected] CAPITAL MARKETS LLCMember FINRA & SIPC Andrew Holder +1 (617) 292 8222 Kelleigh Faldi +1 (617) 292 8288

Colin Andrade +1 (617) 292 8230 Kieran O'Sullivan +1 (617) 292 8292Cathal Carroll +1 (646) 445 7206 Emily Mouret +1 (646) 445 7204Burr Clark +1 (617) 292 8282 Jonathan Saxon +1 (646) 445 7202

Julie Doherty +1 (617) 292 8228


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Please note that the use of this research report is subject to the conditions and restrictions set forth in theGeneral 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, pleaserefer 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 Disclosures JCDecaux SA no disclosures

(1) Berenberg Bank or its affiliate(s) was Lead Manager or Co-Lead Manager over the previous 12 months of apublic offering of this company.

(2) Berenberg Bank acts as Designated Sponsor for this company.(3) 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 companyfor investment banking services.

(4) Berenberg Bank and/or its affiliate(s) holds 5% or more of the share capital of this company.(5) Berenberg Bank holds a trading position in shares of this company.(6) 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 Price target - EUR Rating Initiation of coverage19 March 12 24.30 Hold 04 January 0610 May 12 24.00 Buy19 July 12 23.00 Buy30 July 12 21.00 Buy22 October 12 20.50 Buy17 January 13 22.00 Buy08 March 13 25.00 Buy

Berenberg distribution of ratings and in proportion to investment banking services

Buy 45.45 % 69.23 %Sell 16.77 % 3.85 %Hold 37.78 % 26.92 %

Valuation basis/rating key The recommendations for companies analysed by Berenberg Banks equity research department are either made on anabsolute basis (absolute rating system) or relative to the sector (relative rating system), which is clearly stated inthe financial analysis. For both absolute and relative rating system, the three-step rating key Buy, Hold and Sellis 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 authorityBundesanstalt 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 informationcontained in this financial analysis. The information on which the financial analysis is based has been obtained fromsources which we believe to be reliable such as, for example, Thomson Reuters, Bloomberg and the relevantspecialised 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 isnecessary to properly reconcile with the facts. Should this result in considerable changes a reference is made in theresearch note.Opinions expressed in this financial analysis are our current opinions as of the issuing date indicated on thisdocument. 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 irregularintervals).

The functional job title of the person/s responsible for the recommendations contained in this report is EquityResearch 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 forhimself/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 withtheir customer service officer as differing views and opinions may exist with regard to the stocks referred to in thisdocument.

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 marketand company development. These reflect assumptions, which may turn out to be incorrect. Berenberg Bank and/or itsemployees accept no liability whatsoever for any direct or consequential loss or damages of any kind arising out of theuse 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 anysecurities mentioned in this document, derivatives thereon or related financial products or seek to perform capitalmarket or underwriting services.

Analyst certificationI, Sarah Simon, hereby certify that all of the views expressed in this report accurately reflect my personal viewsabout 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 thespecific recommendations or views expressed in this research report, nor is it tied to any specific investmentbanking transaction performed by Berenberg Bank or its affiliates.
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I, Emma Coulby, hereby certify that all of the views expressed in this report accurately reflect my personal viewsabout 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 thespecific recommendations or views expressed in this research report, nor is it tied to any specific investmentbanking 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 otherjurisdictions may be restricted by law, and persons into whose possession this document comes should informthemselves 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, anaffiliate of Berenberg Bank and registered US broker-dealer, distributes this document to certain customers, BerenbergCapital Markets LLC does not provide input into its contents, nor does this document constitute research ofBerenberg Capital Markets LLC. In addition, this document is meant exclusively for institutional investors and marketprofessionals, but not for private customers. It is not for distribution to or the use of private investors or privatecustomers.

This document is classified as objective for the purposes of FINRA rules. Please contact Berenberg Capital MarketsLLC (+1 617.292.8200), if you require additional information.

Third-party research disclosures

Company Disclosures JCDecaux SA no disclosures

(1) Berenberg Capital Markets LLC owned 1% or more of the outstanding shares of any class of the subjectcompany by the end of the prior month.*

(2) Over the previous 12 months, Berenberg Capital Markets LLC has managed or co-managed any publicoffering for the subject company.*

(3) Berenberg Capital Markets LLC is making a market in the subject securities at the time of the report.(4) 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.*(5) 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 ofsection 34b of the German Securities Trading Act (Wertpapierhandelsgesetz WpHG) section above.

CopyrightBerenberg 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 m eans or redistributed without Berenberg Banks prior writtenconsent.

June 2012 Berenberg Bank

2013 mar 8 — jcdecaux sa

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