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JCDecaux Announces Intention To Float In June

Paris, 31 May 2001

JCDecaux SA (JCDecaux) – one of the world's leading outdoor advertising groups – announced today that it is to seek a listing in June of its shares on Euronext Paris, the principal stock market in France.

The offering is structured as a global offering of ordinary shares, including a French institutional and retail offering, and an international institutional offering including an offering under Rule 144A to qualified US institutions.

Highlights of the Offering:

  • The gross proceeds of the offering will be approximately €1 billion, in a combined primary and secondary offering, out of which €700 million of gross proceeds will go to JCDecaux SA from the primary offering.
  • Price range of €21 – €24.5 per ordinary share, valuing JCDecaux at €3.8-€4.4 billion.
  • Based on this price range, the maximum number of ordinary shares (excluding the over-allotment option) expected to be offered is 47,619,047, representing 20 to 22% of the enlarged share capital of JCDecaux. The final number of shares to be offered will be determined at the time the offering price is fixed.
  • There will also be an employee offering, in which French employees will be able to purchase shares at a 20% discount to the offering price. This employee offering, which will not amount to more than €15 million, will create an additional maximum number of new ordinary shares of 892,857.

The proceeds of the IPO will be used to fund the continued expansion of JCDecaux's outdoor advertising network and in particular to:

  • Provide greater financial flexibility to support JCDecaux's organic growth
  • Fund strategic acquisitions in the consolidating outdoor advertising market
  • Pay down a portion of existing debt

In addition, the listing will provide JCDecaux with an acquisition currency and will allow the group to provide incentives to more than 95% of its personnel through a global stock-option plan.

Background:

JCDecaux is one of the three largest outdoor advertising groups in the world. The Group was created in 1964 and pioneered the street furniture advertising medium. Subsequently, JCDecaux's activities have expanded to include billboards and transport advertising. The Group is currently present in 38 countries around the world and in 2000 achieved EBITDA of €386 million on revenues of €1.4 billion.

JCDecaux enjoys leading positions in all of its three key activities:

  • Street Furniture – JCDecaux is number one worldwide in street furniture with 250,000 panels in 31 countries. The street furniture segment is the least mature and fastest-growing sector of the outdoor advertising market.
  • Billboards – JCDecaux is number one in Europe, following its recent partnership announcement with Gewista, with 184,000 billboard panels in 23 countries. The billboard is the traditional outdoor product, representing the largest portion of outdoor spend worldwide.
  • Airport Advertising – JCDecaux is number one worldwide in airport advertising with 81,000 panels in 140 airports, and has concessions for eight major subway systems.

With a total of 515,0000 advertising panels, JCDecaux reaches more than 120 million people worldwide via its outdoor network every day. The Group's future is increasingly international and its aim is to continue its development in Europe and grow its presence in the major cities in North and South America and the Asia-Pacific region.

Commenting on the flotation, Jean-François Decaux, Chairman and Co-CEO of JCDecaux said:

“This is an exciting time for JCDecaux and the outdoor advertising market as a whole – where there are good opportunities for growth. Having established one of the leading outdoor advertising companies in the world, a stock market listing represents the next step towards achieving our objective of being the number one or two outdoor advertising company in each of our core markets. The listing will provide us with greater financial flexibility, the necessary currency to make the most of acquisition opportunities in a consolidating market and incentives to attract the best people in our sector.

Outdoor advertising is an attractive, high-growth industry and we believe that there are major opportunities for developing innovative and attractive advertising solutions to drive further growth.”

Goldman Sachs International is acting as Sole Global Coordinator and Bookrunner in connection with the offering, with BNP Paribas and Deutsche Bank as Co-Lead Managers.

For further information:
JCDecaux S.A.
Cécile Prévot , Investor Relations
Z.I. Ste Apolline
Route Nationale 12, BP 11
78373 Plaisir Cedex
France
+33 1 30 79 79 93
cecile.prevot@jcdecaux.fr

Financial Dynamics
Tim Spratt / Charles Palmer
+44 207 831 3113
charlie.palmer@fd.com

This announcement is not for distribution in the United States, Canada or Japan. This announcement and the information contained herein is not an offer for sale in the United States or any other jurisdiction. Any such offer will be made solely by means of the international offering circular or the French prospectus to be published by JCDecaux and any acquisition of shares should be made solely on the basis of the information contained in those documents. The value of shares can go down as well as up. Persons needing advice should consult a professional adviser.

Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. JCDecaux does not intend to register any portion of the planned offering in the United States or to conduct a public offering of securities in the United States.

Goldman Sachs International, which is regulated in the United Kingdom by The Securities and Futures Authority Limited, is acting for JCDecaux and for no-one else in connection with the offering and will not be responsible to anyone other than JCDecaux for providing the protections afforded to customers of Goldman Sachs International or for providing advice in relation to the offering.

Stabilisation/FSA