2017 REGISTRATION DOCUMENT Annual financial report HIGHLIGHTS 2017 2017 financial performance Net income Groupe share before impairment charge Another year Street Furniture margin decreasing, mainly due of record revenue driven progressing to the mechanical impact by digital and a stronger but Group margins impacted related to the US Federal tax than expected H2 by Transport reform on our tax charges and Billboard Higher capex as expected mainly due Dividend per share Solid financial to new contracts for 2017 proposed flexibility in China and Brazil at €0.56 Investments for future growth • Pursue the Street Furniture’s digitisation in premium locations • Further consolidation opportunities • On-going organic growth • Automated trading platform deployment GROUP PROFILE JCDecaux is the number one outdoor advertising company worldwide, with a total of 1.1 million advertising panels in more than 75 countries. The company’s revenue was €3,471.9 million in 2017. JCDecaux operates 3 different business segments detailed below: N°1 N°1 N°1 IN WORLDWIDE WORLDWIDE EUROPE STREET FURNITURE TRANSPORT BILLBOARD KEY FIGURES • JCDecaux is listed on the Eurolist of Euronext Paris • N°1 in outdoor advertising in Asia-Pacific and is part of the Euronext 100 and Euronext Family (216,290 advertising panels) Business indexes • N°1 in outdoor advertising in Latin America • JCDecaux is part of the FTSE4Good and Dow Jones (77,190 advertising panels) Sustainability Europe indexes • N°1 in outdoor advertising in Africa • N°1 worldwide in street furniture (543,050 advertising panels) (26,770 advertising panels) • N°1 worldwide in transport advertising • N°1 in outdoor advertising in the Middle-East with more than 215 airports and 250 contracts in metros, (18,650 advertising panels) buses, trains and tramways (356,320 advertising panels) • Leader in self-service bike rental scheme: pioneer • N°1 in Europe for billboards in eco-friendly mobility (141,630 advertising panels) • 1,074,113 advertising panels in more than 75 countries • N°1 in outdoor advertising in Europe • Present in 4,033 cities with more than 10,000 inhabitants (672,220 advertising panels) • 13,040 employees 2017 KEY FIGURES ADJUSTED REVENUE MWH OF ENERGY CONSUMPTION BY REGION BY REGION 8.5% 5.1% 9.3% 26.8% 10.4% 29.3% EUROPE* ASIA PACIFIC 12.9% FRANCE 13.0% UNITED KINGDOM REST OF THE WORLD NORTH AMERICA 16.3% 23.6% 17.7% 27.2% * Excluding France and the United Kingdom Group adjusted revenue Group energy consumption €3,471.9m 849,296MWh ADJUSTED REVENUE ADJUSTED OPERATING MARGIN BY BUSINESS BY BUSINESS 3,207.6 3,392.8 3,471.9 695.2 646.5 653.5 1,394.3 43.4% 1,523.7 44.9% 1,576.2 45.4% 441.6 63.5% 405.4 62.7% 420.2 64.3% 1,355.4 42.3% 1,373.7 40.5% 1,398.1 40.3% 201.5 29.0% 182.0 28.2% 177.7 27.2% 457.9 14.3% 495.4 14.6% 497.6 14.3% 52.1 7.5% 59.1 9.1% 55.6 8.5% 2015 2016 2017 2015 2016 2017 STREET FURNITURE TRANSPORT BILLBOARD In 2017, the Group’s adjusted revenue increased by +2.3% In 2017, Group’ adjusted operating margin(1) increased by +1.1% to €3,471.9 million. Excluding acquisitions and the impact of to €653.5 million from €646.5 million in 2016. It accounts for foreign exchange, adjusted organic revenue growth was +3.2%. 18.8% of adjusted consolidated revenue. Street Furniture adjusted revenue (1) Operating Margin: Revenue less Direct Operating Expenses (excluding Maintenance spare was €1,576.2 million, an parts) less SG&A expenses. increase of +3.4%. Excluding acquisitions and the impact of foreign exchange, the increase was +4.4%. Transport adjusted revenue was €1,398.1 million, an increase of +1.8%. Excluding acquisitions and the impact of foreign Adjusted data exchange, the increase was +4.5%. Following the adoption of IFRS 11 from January 1st, 2014, the operating data presented is adjusted to include our prorata share Billboard adjusted revenue was €497.6 million, an increase in companies under joint control, and therefore is comparable of +0.4%. Excluding acquisitions and the impact of foreign with historical data. exchange, the decrease was -4.2%. Please refer to the note 3 “Segment reporting” of the Notes to the consolidated financial statements of this registration document for the definition of adjusted data and reconciliation with IFRS. ADJUSTED EBIT BEFORE IMPAIRMENT CHARGE NET INCOME GROUP SHARE BY BUSINESS BEFORE IMPAIRMENT CHARGE 371.4 351.4 358.1 241.4 223.5 204.3 201.1 54.1% 193.2 55.0% 217.5 60.7% 152.1 41.0% 130.5 37.1% 119.3 33.3% 18.2 4.9% 27.7 7.9% 21.4 6.0% 2015 2016 2017 2015 2016 2017 STREET FURNITURE TRANSPORT BILLBOARD Adjusted EBIT(1) before net impairment charge(2) increased Net income Group share before net impairment charge(1) by +1.9% to €358.1 million from €351.4 million in 2016. decreased by -8.6% to €204.3 million in 2017, compared to It accounts for 10.3% of adjusted consolidated revenue €223.5 million in 2016. (2016: 10.4%). (1) The net impairment charge resulting from the impairment test conducted for (1) EBIT = Earnings Before Interests and Taxes: Operating Margin less Depreciation, goodwill and tangible and intangible assets amounts to €(10.6) million in 2017, amortization and provisions (net) less Impairment of goodwill less Maintenance a reversal of +€1.2 million in 2016 and a net impairment charge of €(7.5) million spare parts less Other operating income and expenses. in 2015. (2) The net impairment charge resulting from the impairment test conducted for goodwill and tangible and intangible assets amount to €(12.3) million in 2017, a reversal of +€1.7 million in 2016 and a net impairement charge of €(13.9) million in 2015. ADJUSTED FREE EMPLOYEE BREAKDOWN CASH-FLOW BY REGION 333.4 12,854 13,027 13,038 263.7 3,809 3,609 3,421 2,074 2,047 2,052 142.9 3,556 3,533 3,542 727 722 697 2,390 2,804 2,897 298 312 429 2015 2016 2017 2015 2016 2017 In 2017, adjusted free cash-flow(1) was €142.9 million EUROPE UNITED KINGDOM compared to €263.7 million in 2016. ASIA PACIFIC REST OF THE WORLD (1) Free cash flow: Net cash flow from operating activities less capital investments FRANCE NORTH AMERICA (property, plant and equipment and intangible assets) net of disposals. This document is interactive Click here to read the manual 2017 REGISTRATION DOCUMENT Financial annual report JCDecaux SA This Annual Report was filed with the French Autorité des Marchés Financiers (AMF) on 26 April 2018, as stipulated in Article 212-13 of the rules and regulations of the AMF. It may not be used to support a financial transaction unless it is supplemented with an operation note approved by the AMF. This document was prepared by the issuer and is binding upon its signatories. TABLE OF CONTENTS COMPANY OVERVIEW AFR The year 2017 8 The outdoor advertising industry 11 One business, three segments 20 Our advertisers 40 AFR Research and development 42 AFR SUSTAINABLE DEVELOPMENT AND CSR Perspectives for intelligent and responsible cities and mobility services 48 Our sustainable development strategy 50 Organisation and management of the Sustainable Development Strategy 53 JCDecaux in 2017 – key figures 55 Our environmental commitment 56 Our social commitment 63 Our stakeholder commitment 74 JCDecaux’s presence in international extra-financial rating indices 86 GRI-G4 content index table (Core option) 87 Independent verifier’s report on consolidated social, environmental and societal information presented in the management report 91 AFR FINANCIAL STATEMENT Management discussion and analysis of group consolidated financial statements 96 Consolidated financial statements 108 Notes to the consolidated financial statements 115 Comments on the annual financial statements of JCDecaux SA 180 Corporate financial statements of JCDecaux SA 184 Notes to the corporate financial statement 187 COVER PAGE TITLE : DIGITAL LED SCREEN OF 57sqm - Shanghai International airport, CHINA LEGAL INFORMATION AFR Information about the Company 206 AFR Corporate governance 210 AFR Shareholding and stock market 270 AFR Share capital 276 AFR Risk management policy 280 Main subsidiaries and simplified organisational chart 297 OTHER INFORMATION Statutory auditors’ report 302 AFR Person responsible for the annual report and persons responsible for the audit of the financial statements 312 Incorporation by reference 313 Items comprising the Annual Financial Report are identified in the table of contents by the pictogram AFR JCDecaux DOCUMENT DE RÉFÉRENCE 2017 MESSAGE FROM THE CO-CEOS Madam, Sir, Dear Shareholders, JCDecaux is more attractive and competitive than ever before. The ramping up of the roll-out of our digital portfolio combined with our 4D strategy, Digital, Data, Distribution, Dynamic (content), will enable us to market our prime assets to different, attractive audiences. With the contribution of our excellent teams, our ability to win new contracts and our financial strength we are well positioned to compete in an increasingly fragmented media landscape. In 2017 we continued to grow, with a record year in terms of new contract wins, 31 in total. Annual revenue increased by +2.3%, to an unparalleled level of €3,472 million. This reflects the strong performance of our digital © Gilles DACQUIN assets in Street Furniture and the recovery in Transport Advertising, driven by an improvement in our Chinese business, becoming our first market this year. While the Billboard Advertising market remains challenging, the good sales performance of our premium large-format screens in London, Chicago and Moscow gives us some confidence.