Nexity Sa · EURONEXT:NXI
Nexity Sa — Non-Deal Roadshow (January 2016)
73 slides from Nexity Sa's roadshow presentation, January 2016
Slide 1: Nexity Investor Presentation January 2016
NEXITY INVESTOR PRESENTATION JANUARY 2016 NEXITY / January 2016 PAGE 1
Slide 2: Disclaimer
DISCLAIMER The information contained in this document has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained
Slide 3: Sommaire
SOMMAIRE 1. NEXITY AT A GLANCE 4 2. FRENCH RESIDENTIAL MARKET FRAMEWORK, 12 DATA AND ENVIRONMENT 3. 9M 2015 BUSINESS ACTIVITY 26 4. H1 AND 9M 2015 FINANCIALS 45 5. OUTLOOK 59 6. APPENDIX 62 NEXITY / January 2016 PAGE 3
Slide 4: Nexity at a Glance
To / Ly we NEXITY AT A GLANCE
Slide 5: Real Estate Development and Services, for Three Types of Clientele
REAL ESTATE DEVELOPMENT AND SERVICES, FOR THREE TYPES OF CLIENTELE LOCAL INDIVIDUALS COMPANIES AUTHORITIES Commercial real estate Development development: offices, of new homes warehouses, distribution and subdivisions centres and light industrial space, retail premises, hotels, etc. Villes & Projet
Slide 6: A Leadership Position in Its Key Markets
A LEADERSHIP POSITION IN ITS KEY MARKETS NEXITY’S MARKET POSITIONING AND MARKET SHARES* LEADER No. 1 IN RESIDENTIAL IN COMMERCIAL REAL ESTATE REAL ESTATE Market share: 12.1% Market share: 9.8% No. 2 IN REAL ESTATE SERVICES TO INDIVIDUALS (Property management) > Condominium management: 8.1% market sh
Slide 7: Nexity, France's Leading Property Developer
NEXITY, FRANCE’S LEADING PROPERTY DEVELOPER RESERVATION VALUE OPERATING MARGIN (2013-2014 average, in €m, incl. VAT) 2013-2014 average, in €m, incl. VAT) 2,551 2,549 188 176 138 1,335 1,252 1,190 1,113 1,054 75 67 62 803 778 743 53 49 25 Nexity Icade Promotion Immobilier Vinci immobilier Eiffage Imm
Slide 8: A Business Model Very Different from Other European Real Estate Operators
A BUSINESS MODEL VERY DIFFERENT FROM THAT OF OTHER EUROPEAN REAL ESTATE OPERATORS Nexity is not: Nexity is: > A property company > Present across all real estate business lines, apart from the holding of property assets (except in the context of development or co-investment operations) • An “asset l
Slide 9: 2014 Revenue and Current Operating Profit
2014 REVENUE AND CURRENT OPERATING PROFIT REVENUE CURRENT OPERATING PROFIT AND SHARE OF REVENUE AND MARGIN (in €m) (in €m) Other activities 47 (2%) Services and Networks 484 27 (18%) 5.5% 268 Commercial real estate 46 184 2,632 (10%) 17.0% 7.0% 143 1,833 7.8% (70%) Residential real estate Other acti
Slide 10: Resilient Financial Performance
RESILIENT FINANCIAL PERFORMANCE 2,747 2,603 2,831 2,737 2,632 CONSOLIDATED REVENUE* 201 202 200 192 184 CONSOLIDATED CURRENT OPERATING PROFIT* 133 132 127 133 117 CASH FLOW* (Cash flow from operating activities after financial and tax expenses**) 2010 2011 2012 2013 2014 2.0 2.0 2.0 2.0 2.0 2.0 DIVI
Slide 11: Ownership Structure
OWNERSHIP STRUCTURE 30 September 2015 A.Dinin, New Port* and other Nexity Crédit Mutuel Arkéa managers in the concert group 5.0% 12.3% 54,189,017 shares FCPE and other employees (no treasury shares) 3.0% Predica 17.3% held by AD, 5.2% CMA, and other concert group members 12.8% Caisses d’Épargne (gro
Slide 12: French Residential Market Framework, Data and Environment
2. FRENCH RESIDENTIAL MARKET FRAMEWORK, DATA AND ENVIRONMENT
Slide 13: Financial Model for Residential Development
RESIDENTIAL FINANCIAL MODEL FOR RESIDENTIAL DEVELOPMENT 1 2 3 4 5 6 Project Purchase Pre-sales Purchase Start Sales phase, phases option phase: option of transfers of ownership, Delivery on land 6–12 months exercise works construction: 18–24 months 100% 100% 60% 40% M0 M6-12 M24-36 Payment 5% upon r
Slide 14: Cash Flow Profiles for VEFA Off-Plan Sales
CASH FLOW PROFILES FOR VEFA OFF-PLAN SALES RESIDENTIAL REAL ESTATE RESIDENTIAL REAL ESTATE COMMERCIAL REAL ESTATE for individual clients for social housing operators, with progress payments 110 110 107 99 94 95 Cash inflows 83 70 66 62 55 55 35 34 28 17 19 14 15 15 9 10 6 7 10 4 0 0 5 5 0 0 -2 -5 -9
Slide 15: Commercial Offer of New Homes in the Market
RESIDENTIAL COMMERCIAL OFFER OF NEW HOMES IN THE MARKET AVAILABLE SUPPLY IN FRANCE AT 30 SEPTEMBER 2015 (number of apartments, in units) -6% 95,315 7% 89,849 7% Completed 37% Under 35% construction In project phase 56% 59% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9M 2015 Source: Commis
Slide 16: Residential Market Sales & New Supply
RESIDENTIAL RESIDENTIAL MARKET SALES & NEW SUPPLY SALES AND NEW SUPPLY AT 30 SEPTEMBER 2015 (number of apartments, in units) 40,000 35,000 30,000 Q3 2015 sales 25,000 +17% yoy 20,000 Q3 2015 15,000 new supply +5% yoy 10,000 Q1 Q3 2003 2015 Sales New supply Source: Commissariat Général au Développeme
Slide 17: French Residential Market: Building Permits & Housing Starts
RESIDENTIAL FRENCH RESIDENTIAL MARKET: BUILDING PERMITS & HOUSING STARTS RESIDENTIAL BUILDING PERMITS HOUSING STARTS (in thousands of units, 12 months rolling) (in thousands of units, 12 months rolling) 428,400 -3% 406,400 378,800 0% 366,900 350,700 350,600 Oct.-13 Oct.-14 Oct.-15 Oct.-13 Oct.-14 Oc
Slide 18: Estimate of the Total Sales Volume for New Homes in France
RESIDENTIAL ESTIMATE OF THE TOTAL “SALES” VOLUME FOR NEW HOMES IN FRANCE DEVELOPERS (SALES), SOCIAL HOUSING (FINANCING AUTHORISATIONS), SINGLE FAMILY HOUSES (SALES) (in thousands of units) -12% 368 -3% -5% 324 315 297 89 -3% Developers(1) 87 117 Social housing(2) -9% 106 Single family houses(3) 108
Slide 19: Market Drivers
RESIDENTIAL MARKET DRIVERS MORTGAGE RATES MONTHLY CONFIDENCE CONSUMER (all markets, excl. insurance, last month SURVEY – SYNTHETIC INDEX of the quarter, average) (WD-SA) 108 5.07% 3.78% 2.59% 96 3.68% 94 94 2.19% 92 average: 89 1.29% 0.99% 86 0.48% 82 2011 2004 2005 2006 2007 2008 2009 2010 2012 201
Slide 20: Evolution of Home Prices
RESIDENTIAL EVOLUTION OF HOME PRICES INDEX PRICES EVOLUTION IN FRANCE (apartments, rebased Q1 1996) 324 257 209 100 new homes - overall France (prices per sqm) ANNUAL PRICES EVOLUTION IN FRANCE (apartments) 22% existing homes - overall France (prices per home) existing homes - Paris 1% (prices per h
Slide 21: Major Recent and Upcoming Tax and Regulatory Changes
MAJOR RECENT AND UPCOMING TAX AND REGULATORY CHANGES 2014 Measures 2015 Measures 2016 Outlook INTERMEDIATE HOUSING HOMEBUYERS HOMEBUYERS status created for institutional investors Changes to the PTZ+ interest-free loan Improvement to the PTZ+ interest-free - 10% VAT rate (instead of 20%) ⇒ Outside P
Slide 22: Announcement of a New PTZ to Support First-Time Buyers
RESIDENTIAL ACCOUNCEMENT OF A NEW PTZ* TO SUPPORT FIRST-TIME BUYERS > New measures announced** to support home ownership through a “new generation PTZ” • To be implemented for 2 years from 1st January 2016 > Main changes: • Raised Income ceilings • Increased LTV (“quotité”) to 40%, from 18% to 26% a
Slide 23: New Home Market Recovery
RESIDENTIAL NEW HOME MARKET RECOVERY Q1 2012 - Q3 2015 DEVELOPERS’ NEW HOME RESERVATIONS (in units) +16% +26% 27,500 +18% +8% 25,000 22,557 22,500 20,000 19,442 17,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2013 2014 2015 > 74.6k new home reservations at the end of September (+20%) : Sour
Slide 24: New Home Reservation Market in France (Developers)
RESIDENTIAL NEW HOME RESERVATION MARKET IN FRANCE (DEVELOPERS) DEVELOPERS’ NEW HOME RESERVATIONS (in units) 127,400 115,400 105,800 105,000 Average 2004–2014: 105,200 ≈94-100,000 89,000 89,300 87,000 79,400 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e Sources: Commissariat Général au
Slide 25: Nexity Residential: A Leader in Its Market
RESIDENTIAL NEXITY RESIDENTIAL: A LEADER IN ITS MARKET NEXITY MARKET SHARES GROWTH IN NEXITY’S MARKET SHARE AT END DECEMBER 2014 11.5% 11.3% 12.1% 10.2% 10.3% 10.9% 8.4% 8.6% 9.2% 7.4% 19.3% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 15.7% 13.9% MARKET SHARES OF THE LEADING PLAYERS IN THE FRE
Slide 26: 9M 2015 Business Activity
3. 9M 2015 BUSINESS ACTIVITY
Slide 27: 9M 2015 Nexity Reservations
RESIDENTIAL 9M 2015 NEXITY RESERVATIONS VOLUME AT END SEPTEMBER VALUE AT END SEPTEMBER (in units) (in €m, incl. VAT) +10.8% +18.1% 9,870 1,741 8,718 8,940 1,602 7,957 8,066 1,477 1,441 1,356 +18.9% +11.8% 1,562 1,483* 8,010 7,504* 1,311 7,139 6,712 1,285 1,247 6,540 2011 2012 2013 2014 2015 2011 201
Slide 28: Quarterly Changes of Nexity New Home Reservations
RESIDENTIAL QUARTERLY CHANGES OF NEXITY NEW HOME RESERVATIONS VOLUME VALUE (Qn2015/Qn2014 changes (Qn2015/Qn2014 changes of reservations in units) of reservations in €m, incl. VAT) +20% +25% +13% +17% 8.778 +13% +13% +13% +9% +9% +8% +8% +2% Q1 Q2 Q3 Q1 Q2 Q3 constant scope of consolidation* reporte
Slide 29: 9M 2015 Nexity New Home Reservations by Area
RESIDENTIAL 9M 2015 NEXITY NEW HOME RESERVATIONS BY AREA VOLUME VALUE (in units) (in €m, incl. VAT) +19% +12% 1,483 7,504 1,311 6,540 6,712 1,247 38% 46% -5% Paris region +7% 43% 44% 53% 51% 425 63% +32% 54% 57% 56% +25% 47% Rest of France 49% 9M 2013 9M 2014 9M 2015 9M 2013 9M 2014 9M 2015 NEXITY /
Slide 30: 9M 2015 Nexity New Home Commercial Launches
RESIDENTIAL 9M 2015 NEXITY NEW HOME COMMERCIAL LAUNCHES (France, excluding Iselection and PERL, in units) 10,989 9,344 Q4 7,521 +21% 2,012 Q3 2,090 Q2 4,354 2,975 1,154 1,155 Q1 2013 2014 2015 > Dynamic commercial launches policy: 12% increase of the number of operations launched (92) at 30 Septembe
Slide 31: 9M 2015 Nexity Key Client Segments Performance
RESIDENTIAL 9M 2015 NEXITY KEY CLIENT SEGMENTS PERFORMANCE NEW HOME RESERVATIONS BREAKDOWN BY CUSTOMER TYPE (excl. International, in units) +12% 9M 2015 /9M 2014 7,504 6,540 6,712 Professional 28% -11% landlords 32% 36% Individual 47% investors +52%* 35% 34% 8% 7% Other home buyers -1% 6% 26% 23% 19
Slide 32: Quarterly Changes of Key Client Segments Performance
RESIDENTIAL QUARTERLY CHANGES OF KEY CLIENT SEGMENTS PERFORMANCE NEW HOME RESERVATIONS BREAKDOWN BY CUSTOMER TYPE (excl. International, in units) 2,949 2,722 2,368 26% 2,175 2,187 44% 34% Professional landlords 1,815 26% 30% 30% 49% 47% 28% 42% 44% Individual investors* 35% 8% 6% 7% 6% 7% Other home
Slide 33: Professional Landlords
RESIDENTIAL PROFESSIONAL LANDLORDS BREAKDOWN OF RESERVATIONS BY PROFESSIONAL LANDLORDS (in units, excluding International) -11% 2,384 2,102 2,130 1,913 1,447 social housing 1,982 unregulated housing intermediate housing 134 30 +45% Non-social excluding SNI 457 683 519 SNI (intermediate housing) 120
Slide 34: Price Trends
RESIDENTIAL PRICE TRENDS NEW HOMES (NEXITY CLIENTS) (in thousand of euros, excl. Iselection, PERL, International and bulk sales) 269 257 Paris Region 248 250 Paris Region excl. Paris 187 186 Regions 2006 2007 2008 2009 2010 2011 2012 2013 9M 2014 9M 2015 9M 2014 9M 2015 Var. Average home price incl.
Slide 35: Nexity New Home Commercial Offer
RESIDENTIAL NEXITY NEW HOME COMMERCIAL OFFER COMMERCIAL OFFER (in units, excl. Iselection, PERL and International) 6,988 2% 5,313 5,382 5,058 85 Completed new 52% homes 4,202 4,293 29% 33% 28% New homes 3,663 3,542 under construction 71% 69% 66% New homes 46% in project phase 2008 2009 2010 2011 201
Slide 36: Nexity Business Potential
RESIDENTIAL NEXITY BUSINESS POTENTIAL BUSINESS POTENTIAL FOR NEW HOMES* (in units, excl. Iselection, PERL and International) +19% 28,685** 23,941 24,109 22,824 23,143 23,100 Paris region 21,285 43% 28% 19,057 35% +44% 72% 65% 57% Rest of France +5% 2008 2009 2010 2011 2012 2013 9M 2014 9M 2015 * Inc
Slide 37: Nexity Wins the First Two Calls for Proposals Issued by Société du Grand Paris
RESIDENTIAL NEXITY WINS THE FIRST TWO CALLS FOR PROPOSALS ISSUED BY SOCIÉTÉ DU GRAND PARIS (SGP) CRÉTEIL L’ECHAT (Val-de-Marne) BAGNEUX (Hauts-de-Seine) Future development project for real estate Future development project for real estate related to the Créteil l’Echat train station related to the f
Slide 38: Le Grand Paris (The Greater Paris Project)
LE GRAND PARIS (THE GREATER PARIS PROJECT) > Grand Paris is a project aimed at: • Transforming the Paris area into a great world metropolis of the 21st century • Improving residents’ quality of life, correcting geographical inequalities and building a sustainable city > All this begins with the Gran
Slide 39: Commercial Markets
COMMERCIAL COMMERCIAL MARKETS TAKE-UP IN PARIS REGION (in millions of sq.m) 2.8 2.2 1.9 1.9 Q4 1.5 Q3 -6% 0.6 Q2 0.5 Q1 0.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 COMMERCIAL INVESTMENT MARKET IN FRANCE (in billions of euros) 27 o/w €10.2bn invested 24 on the offices market, ie +3% vs 9M 2
Slide 40: 9M 2015 New Order Intake and Backlog
COMMERCIAL 9M 2015 NEW ORDER INTAKE AND BACKLOG ORDER INTAKE BACKLOG (in €M) (in €M) 544 Target exceeded +2% 449 +301 +14 459 301 190 >200 176 -305 2012 2013 2014 9M 2015 2015 31 Dec. 9M 2015 9M 2015 additional 30 Sept. target 2014 revenue order works & 2015 intake other adjustments NEXITY / January
Slide 41: The Smart Side Business Park in Saint-Ouen and Clichy
COMMERCIAL THE “SMART SIDE” BUSINESS PARK IN SAINT-OUEN (Seine-Saint-Denis) AND CLICHY (Hauts-de-Seine) • VEFA off-plan sale of Smart Side business park to EDF Invest in September 2015 • Developed area: around 40,000 sq.m (useable) of offices and services around an extensive landscaped garden and 57
Slide 42: Services: Units Under Management
SERVICES SERVICES: UNITS UNDER MANAGEMENT PROPERTY MANAGEMENT FOR INDIVIDUALS (PMI) REAL ESTATE SERVICES TO COMPANIES (in thousands of units) (Nexity Property Management) (in millions of sq.m under mgmt) -0.3% 936 933 +7% 12.5 11.7 Condominium 753 management 751 Rental management 182 182 2014 9M 201
Slide 43: Urban Regeneration: Main Operations
OTHER ACTIVITIES URBAN REGENERATION: MAIN OPERATIONS ASNIÈRES 93,600 sq.m Île-de-France MONTREUIL 63,350 sq.m ERMONT EAUBONNE Lyon 9,700 sq.m ST-PRIEST 140,300 sq.m Marseille ST-OUEN 152,300 sq.m MARSEILLE DOCKS LIBRES 30,000 sq.m > ~535,360 sq.m in the portfolio at 30 September 2015 NEXITY / Januar
Slide 44: Nexity Backlog at 30 September 2015
NEXITY BACKLOG* AT 30 SEPTEMBER 2015 16 MONTHS’ REVENUE (in €M, excl. VAT and incl. Iselection, PERL and International) FROM DEVELOPMENT ACTIVITIES 3,315 3,355 3,283 3,295 3,085 Commercial 486 449 459 709 real estate 2,734 383 2,600 390 556 Residential 2,702 2,869 2,834 2,836 real estate 2,606 2,344
Slide 45: H1 and 9M 2015 Financials
dl. H1 AND 9M 2015 FINANCIALS
Slide 46: 9M 2015 Consolidated Revenue
9M 2015 CONSOLIDATED REVENUE* (in €M) +18.5% +142 +19 -35 2,041 Other activities +192 15 11 373 Services & Distribution +5.5% 1,722 46 30 Networks 353 305 Commercial +87.1% 163 Residential +16.6% 1,352 1,160 PERL change of scope Oralia change of scope 9M 2014 Residential Commercial Services & Other
Slide 47: 9M 2015 Services & Distribution Networks Revenue
9M 2015 SERVICES & DISTRIBUTION NETWORKS REVENUE* (in €M) +5.5% +16 -1 +3 +1 373 353 7% Franchises NPM+ NCT Services to 14% (formerly Keops) corporates 18% Studéa 13% Oralia Services to Property individuals management 49% to individuals 9M 2014 perimeter Services to Services to Franchises 9M 2015 im
Slide 48: H1 2015 Current Operating Profit
H1 2015 CURRENT OPERATING PROFIT* OPERATING PROFIT MARGIN CURRENT OPERATING PROFIT (in %) (in €m) 11.0% 92 (12.6%)** 12 Services & Networks 7.8% 22 Commercial (8.0%)** 6.9% (6.6%)** 5.0% (4.8%)** 69 Residential -11 Other activities Residential Commercial Services & Group Networks * According to IFRS
Slide 49: Evolution of Residential Current Operating Profit
EVOLUTION OF RESIDENTIAL CURRENT OPERATING PROFIT* CURRENT OPERATING PROFIT (in %) Excluding 20 International (losses in Italy) 16.1% 15 15.0% 13.1% 10.5% 9.8% 9.9% 10.1% 10 8.1% 8.5% 9.5% 9.3% 8.2% 8.0% 8.0% 7.7% 7.8% 5 7.2% 6.3% 0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2007 2007 2008 2
Slide 50: H1 2015 Services & Distribution Networks Revenue and Current Operating Profit Split
H1 2015 SERVICES & DISTRIBUTION NETWORKS REVENUE AND CURRENT OPERATING PROFIT SPLIT* REVENUE CURRENT OPERATING PROFIT (in €M) AND MARGIN (in €M) 5.4% 243 5.0% 230 4.8% 12 11 94 2 94 4 10 136 148 7 6.7% 4,1% 5.1% H1 2014 H1 2015 H1 2014 H1 2015 Distribution & Networks excl. PMI PMI * According to IFR
Slide 51: H1 2015 Consolidated Income Statement
H1 2015 CONSOLIDATED INCOME STATEMENT* (in €M) H1 2015 H1 2014 Var. Revenue 1,347.0 1,114.6 +20.9% Current operating profit 92.3 73.2 +26.1% Margin 6.9% 6.6% +0.3 pt Net financial income (expense) (10.1) (6.3) +60.4% Taxes (32.1) (30.3) +6.0% Share of profit (loss) from equity-accounted associates (
Slide 52: Digital Transformation and Innovation
DIGITAL TRANSFORMATION AND INNOVATION Level of investment Blue office : 5 Blue Office opened Weroom : increase of audience - Blue Office indicator - Weroom Various plans for new online - « E-gérance », - Mobility services, transforming customer - Connected real relations and rolling out paperless es
Slide 53: Balance Sheet at 30 June 2015
BALANCE SHEET* AT 30 JUNE 2015 (in €M) Goodwill 1,122 1,528 Total shareholders’ equity (incl. non-controlling interests) Other assets 131 WCR 650 119 Provisions 256 Net debt ASSETS LIABILITIES * According to IFRS but with joint ventures proportionately consolidated NEXITY / January 2016 PAGE 53
Slide 54: H1 2015 Working Capital Requirement
H1 2015 WORKING CAPITAL REQUIREMENT* (in €M) +€24 M 627 650 +1 +24 -6 +5 64 Other activities 59 11 Commercial 633 634 Residential** Commercial: -12 -53 -59 Services & Distribution 31 Dec. Residential Commercial Services & Others 30 June networks 2014 Networks 2015 Residential: stable WCR as business
Slide 55: H1 2015 Change in Net Cash/Debt Position
H1 2015 CHANGE IN NET CASH/DEBT POSITION* (in €M) 31 Dec. 2014 30 June 2015 -€89 M -23 +84 -37 -167 -108 +6 -9 -256 cash flow changes in interest dividend CAPEX External from operating and tax growth and operations WCR payments Ciloger before disposal WCR, interest and tax * According to IFRS but wi
Slide 56: H1 2015 Cash Flow Statement
H1 2015 CASH FLOW STATEMENT* (in €M) H1 2015 H1 2014 Cash flow from operating activities before financial and tax 84 76 expenses Change in operating WCR (23) (98) Income taxes, financial expense and dividends of equity-accounted (37) (59) investments paid Net cash from/ (used in) operating investmen
Slide 57: Consolidated Net Debt Position
CONSOLIDATED NET DEBT POSITION* 30 JUNE 2015 (in €M) Drawdown Commited Residential – corporate facility - 300 Services – corporate facility 42 42 Put options granted to minority interests 45 45 Credit for acquisition of companies and fixed assets by the Services business 56 56 Total Corporate debts
Slide 58: Debt Amortisation Schedule at 30 June 2015
DEBT AMORTISATION SCHEDULE AT 30 JUNE 2015* > 45% of debt with term to maturity > 5 years (in €m) > Average term to maturity: 4.8 years Corporate borrowings Project-related loans 242(1) 225(2) Used 150(3) at 30/06/2015 66 50 45 45 1 2 1 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 -693 i
Slide 59: Outlook
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Slide 60: Confirmation of Outlook for 2015
CONFIRMATION OF OUTLOOK FOR 2015* (AS REVISED UPWARD IN JULY 2015) > Nexity market share (12%) to be maintained in a French new homes market RESIDENTIAL estimated to grow at 94,000-100,000 units (versus 90,000-95,000 estimated in February 2015) COMMERCIAL > Order intake of at least €200 million (tar
Slide 61: Dividend
DIVIDEND DIVIDEND PER SHARE (in € per share) 4,0 1,9 2,0 2,0 2,0 2,0 2,0 2,0 2,0 1,6 1,5 1,6 1,0 Paid in: 2005 2006 2007 2008 2009 2010 2011 2011 2012 2013 2014 2015 2016* (Mai) (Sept) *pending decision of Nexity’s Board of Directors and approval of the General Shareholder’ Meeting NEXITY / January
Slide 62: Appendix
6. APPENDIX
Slide 63: Nexity Origins 1979 - 2000
NEXITY ORIGINS 1979 - 2000 Ferret Savinel becomes Férinel Férinel becomes (Groupe Arnault) George V 1979 1989 1996 2000 1995 George V Creation of contributed to CGIS Creation by Groupe Exit from Vivendi of CGIS(1), Arnault Group via LBO SARI + within Générale CIP(2) des Eaux Group -SEERI NEXITY / Ja
Slide 64: Recent Key Milestones 2000 - 2014
RECENT KEY MILESTONES 2000 - 2014 2012 2004 2007 2009 2011 2014 Transforming Proceeds Disposal IPO deal with from of the Single brand launch Oralia and PERL Caisse d’Epargne the disposal Group’ stake acquisitions (38% of the share capital of CFF stake in Eurosic against a 25% contribution cashed-in
Slide 65: Housing: An Overestimated Perception of Dependency on Public Expenditure
HOUSING: AN OVERESTIMATED PERCEPTION OF DEPENDENCY ON PUBLIC EXPENDITURE AN IMPORTANT SOURCE … PUBLIC EXPENDITURE LOWER OF TAX REVENUE … THAN CONTRIBUTIONS WEIGHING (in €bn) ON THE SECTOR AND ONLY MARGINALLY BENEFITING THE DEVELOPMENT MARKET 59 60 54 56 5 44 46 42 41 2 32 23 including €4bn in public
Slide 66: French Residential Real Estate Market from a European Perspective
FRENCH RESIDENTIAL REAL ESTATE MARKET FROM A EUROPEAN PERSPECTIVE The largest market in Europe in terms A legal environment allowing for of size, and by far robust management of development risks HOUSING STARTS IN 2013 (in units) > VEFA (Vente en l’État Futur d’Achèvement) off-plan scheme: transfer
Slide 67: A Business Model and a Strategy Tailored to Respond to Mega-Trends
A BUSINESS MODEL AND A STRATEGY TAILORED TO RESPOND TO MEGA-TRENDS > Emergence of an economy > Major thrust of Nexity’s innovation policy built on access and sharing • Blue Office: a network of connected offices and services rather than ownership • Division of ownership, vehicle sharing, flat sharin
Slide 68: Creating Value for Shareholders
CREATING VALUE FOR SHAREHOLDERS NEXITY’S TOTAL SHAREHOLDER RETURN (share price appreciation +dividends reinvested) Dividend performance Share performance > Since the IPO (21 October 2004) > Last 5 years x5 x2 281% 86% 27% 34% 96% 125% 62% 35% 36% 49% 24% 34% Nexity SBF 120 EPRA Nexity SBF 120 EPRA >
Slide 69: The French Housing Market and Its Context
RESIDENTIAL THE FRENCH HOUSING MARKET AND ITS CONTEXT + - > Encouraging demographic trends > Restrictive urban planning (+0.5% population growth, requirements +1% number of households) Shortage of buildable land Structural data • > Construction efforts have been FRENCH in areas characterised by tigh
Slide 70: Data for the French Residential Real Estate Market
RESIDENTIAL DATA FOR THE FRENCH RESIDENTIAL REAL ESTATE MARKET NUMBER OF HOUSEHOLDS EXTENT OF OWNERSHIP Metropolitan France(1) (as % of the population) (in millions) CAGR +0.9% +6m 83% 71% 34 65% 58% 28 30 32 27 22 Sources: INSEE 2010, TEF, 2010 edition (Eurostat data) 1990 2010 2015e 2020e 2030e 20
Slide 71: Stimulus Measures for Individual Investors
RESIDENTIAL STIMULUS MEASURES FOR INDIVIDUAL INVESTORS > 195 municipalities upgraded into the zones characterised by the tightest supply (A and A bis) > Relaxation of the Duflot buy-to-let investment scheme Pinel > Authorisation again granted to rent to an ascendant or descendant > Identical impact
Slide 72: New Homes: Cost Base
RESIDENTIAL NEW HOMES: COST BASE NEW HOMES COST BASE BREAKDOWN EVOLUTION OF CONSTRUCTION (average cost of programmes - 2014) COST INDEX Financial costs 100% +19% -2% Marketing and advertising 8% 1% Fees and insurance 1,614 15% 1,362 Construction costs 52% Q1 2006 Q2 2014 Q2 2015 2006-2014 Networks 4
Slide 73: 19, rue de Vienne 75 008 Paris Tél.: +33 (0)1 85 55 14 97
19, rue de Vienne 75 008 Paris Tél.: +33 (0)1 85 55 14 97