Affichage record
Outstanding issues in the relationship with partner JCDecaux before clarification
Unresolved issues with partner JCDecaux to be clarifiedBy Markus Knöpfli After record sales in 2000, the Affichage Group was able to increase its income once again. Consolidated sales rose by 4.2 percent to CHF 320.3 million, while consolidated net income fell by 3.5 percent to CHF 27.4 million.
In percentage terms, the Eastern European business of Europlakat (EPI), in which Affichage holds a 49% stake, is currently growing the fastest. Affichage's share of Eastern European sales rose to 33.3 million Swiss francs, which corresponds to an increase of 19.8 percent. This means that EPI accounts for 10.4 percent of Affichage sales, compared to 9 percent the year before last. According to Affichage CEO Christian Kauter, business is developing positively in Hungary, Croatia and Bosnia, but less encouragingly in Poland. There is an oversupply in the outdoor advertising market, which makes a market adjustment necessary. EPI must therefore consider withdrawing from Poland. Although EPI has already attempted to clear the market with a takeover bid to the shareholders of AMS, they have made excessive price demands. "EPI doesn't want to be a clearer at any price," says Kauter.
Another topic at EPI is the wholly-owned Eastern European subsidiaries of EPI majority shareholder JCDecaux. JCDecaux would like to integrate them into EPI. According to Kauter, it will soon be announced how this will be done.
And what about JCDecaux's demand for more say in Affichage itself? Despite its 30 percent stake, JCDecaux is only entitled to 5 percent of the voting rights due to the transfer restriction provisions in Affichage's articles of association. Kauter confirmed that this issue has "remained on the agenda" at Affichage. All the more so as, since last summer, the Competition Commission has definitely not qualified JCDecaux's stake in Affichage as an agreement under competition law.
Affichage in figures (in CHF million)
In percentage terms, the Eastern European business of Europlakat (EPI), in which Affichage holds a 49% stake, is currently growing the fastest. Affichage's share of Eastern European sales rose to 33.3 million Swiss francs, which corresponds to an increase of 19.8 percent. This means that EPI accounts for 10.4 percent of Affichage sales, compared to 9 percent the year before last. According to Affichage CEO Christian Kauter, business is developing positively in Hungary, Croatia and Bosnia, but less encouragingly in Poland. There is an oversupply in the outdoor advertising market, which makes a market adjustment necessary. EPI must therefore consider withdrawing from Poland. Although EPI has already attempted to clear the market with a takeover bid to the shareholders of AMS, they have made excessive price demands. "EPI doesn't want to be a clearer at any price," says Kauter.
Another topic at EPI is the wholly-owned Eastern European subsidiaries of EPI majority shareholder JCDecaux. JCDecaux would like to integrate them into EPI. According to Kauter, it will soon be announced how this will be done.
And what about JCDecaux's demand for more say in Affichage itself? Despite its 30 percent stake, JCDecaux is only entitled to 5 percent of the voting rights due to the transfer restriction provisions in Affichage's articles of association. Kauter confirmed that this issue has "remained on the agenda" at Affichage. All the more so as, since last summer, the Competition Commission has definitely not qualified JCDecaux's stake in Affichage as an agreement under competition law.
Affichage in figures (in CHF million)
2001 2000 Change in %
Sales proceeds 320.3 307.5 + 4.2
Switzerland 287.0 279.7 + 2.6
Europlakat (49%) 33.3 27.8 + 19.8
Operating result 36.7 39.3 - 6.6
Consolidated net income 27.4 28.4 - 3.5
Cash flow 56.4 55.3 + 2.0
