Nexity Sa · EURONEXT:NXI
Nexity Sa — FY2010 Earnings Presentation
90 slides from Nexity Sa's earnings presentation, June 2011
Slide 1: June 2011
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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: Agenda
1/ AT A GLANCE 2/ BUSINESS DIVISIONS 3/ 2010 FULL YEAR RESULTS 4/ OUTLOOK 5/ APPENDICES
Slide 4: 1/ At a glance
1/ AT A GLANCE
Slide 5: Key figures
KEY FIGURES Guidance 2010 2010 2009 Revenue €2,747m €2,500m €2,838m Current operating profit €201m €175m €206m Current operating margin 7.3% 7.0% 7.3% Recurring profit after tax €114m €107m Goodwill depreciation -€35m -€122m Eurosic €41m -€32m Group share of Net Profit €120m -€50m Per share (1) €2.2
Slide 6: Key figures
KEY FIGURES Group Backlog Group cash (€bn, Dec. 31, 2010) 16 months development activity 2010 +5% 2.7 Free Cash Flow €337m 2.6 Commercial Net Cash(1) €291m +15% Residential Net cash position 12.31.2009: €105m Dividend: €86m Share buy back: €66m Dec., 31 Dec., 31 2009 2010 (1) Treasury minus fina
Slide 7: Real estate leader
REAL ESTATE LEADER CLIENT 3 TYPES LOCAL AUTHORITIES CORPORATES INDIVIDUALS Urban Commercial Residential 6 BUSINESS LINES renewal Development Investment Development and Asset Distribution Management Services At a glance 7
Slide 8: FY 2010 revenue and current operating profit
FY 2010 REVENUE AND CURRENT OPERATING PROFIT REVENUE CURRENT OPERATING PROFIT (€m) (€m) 2,747 201 31 Services & Distribution 609 59 Commercial 15 Residential 375 137 1,732 Others -10 FY 2010 CURRENT OPERATING MARGIN: 7.3% At a glance 8
Slide 9: 2/ Business divisions
2/ BUSINESS DIVISIONS
Slide 10: Construction starts
CONSTRUCTION STARTS Minimum to solve housing crisis = 500,000 (est.) 435,000 410,000 421,000 368,000 346,000(2) Weak ~145,000(3) 333,000 construction Developers starts ~87,000(3) 107,000(1) Shortfall Social Housing in construction 131,000(2) starts in urban areas ~183,000(3) Individuals ~128,000
Slide 11: Mortgage rates
MORTGAGE RATES Mortgage rates to individuals by quarter – All markets (Average(1) - %) 5.20 5.07 4.85 4.62 4.35 4.73 3.78 4.33 4.53 3.88 3.78 3.82 3.70 3.74 4.08 3.39 3.27 3.82 3.79 3.93 3.71 3.53 3.55 3.50 3.36 3.03 Q4 01 Q4 02 Q4 03 Q4 04 Q4 05 Q4 06 Q4 07 Q4 08 Q4 09 Q4 10 March Apr 11 May May11
Slide 12: Mortgage duration
MORTGAGE DURATION In months 221 213 212 211 211 Jan 08 Dec. 08 Dec. 09 Dec. 10 May 11 Source: Observatoire Crédit Logement Business divisions 12
Slide 13: Mortgage production
MORTGAGE PRODUCTION Volume of mortgage production to individuals (in €bn) 155 158 89 43 29 2005 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 2005-2008 2009 2010 2011 Source: Banque de France Business divisions 13
Slide 14: New homes market
NEW HOMES MARKET New homes reservations (Apartments and individual homes) Number of reservations 127,000 120,000 115,000 106,000 ~105,000(e) 100,000 Average 85/10: 89,000 80,000 60,000 40,000 20,000 0 2000 00 2001 2002 02 2003 04 2004 2005 2006 06 2007 08 2008 09 2009 10 2010 11 2011e Source: Meedat
Slide 15: New homes commercial offer
NEW HOMES COMMERCIAL OFFER Commercial offer - apartments Commercial offer Number of apartments in months of sales 100,000 94,956 7.1 75,000 58,671 53,633 49,825 50,000 New homes in project 25,000 New homes under construction 0 Completed new homes 2004 2005 2006 2007 2008 2009 2010 March 11 Source: M
Slide 16: Government incentives measures
GOVERNMENT INCENTIVES MEASURES 2010 2011 Since June 30th, 2010 ZERO RATE LOAN 1.5 multiple PTZ+ STRENGHTENED PASS FONCIER YES REAL ESTATE ADJUSTED YES SAVINGS PLAN “PEL” HIGHER RETURN DEDUCTION OF YES CANCELLED MORTGAGE INTERESTS YES for ANRU area 5.5% VAT UNCHANGED and 500m around SCELLIER BUY-TO-L
Slide 17: PTZ+ (new zero rate loan)
PTZ+ (NEW ZERO RATE LOAN ) PTZ+: one single tool to replace multiple former assistance tools A more targeted and more efficient tool First-time buyers Loan with no interest, with amortization spread over up to 30 years and possible capital deferred repayment Up to 40% of home price (amount
Slide 18: Mortgage maximum amount with PTZ+
MORTGAGE MAXIMUM AMOUNT WITH PTZ+ ASSUMPTIONS LOAN MAXIMUM AMOUNT WITH PTZ+ VS. PTZ +15.4% €269,500 - Energy efficient (BBC) home +12.5% +5.1% €193,500 €196,000 +0.8% €188,000 - First-time buyers - Couple with 2 children - Additional loan with 30 year maturity and Area A Area B1 Area B2 Area C 4% fi
Slide 19: Scellier buy-to-let tax scheme
SCELLIER BUY-TO-LET TAX SCHEME Reminder Income tax break Deduction from tax bill, over 9 years, of 22% of investment in new homes meeting “BBC” energy efficiency standards Maximum deduction of €66,000 (€300,000 x 22%) Cap for rents by geographic area (A+, A, B1, B2, C), positioned at market
Slide 20: Group strategy: Residential
GROUP STRATEGY RESIDENTIAL Grow market share thanks to a multi-expert strategy: Strengthen major customer segments (home buyers, private investors, and institutional investors) Develop new niche markets Develop affordable new homes for first-time buyers Develop serviced new homes for stude
Slide 21: Residential reservations in 2010
RESIDENTIAL RESERVATIONS IN 2010 VOLUME VALUE (units, excl. Italy) (€m, incl. VAT, excl. Italy) +13% +19% 14,723 13,013 2,514 Plots of 2,113 2,205 +30% 2,869 land 219 141 +55% 9,061 1,475 1,754 114 2,295 1,972 +16% 7,307 10,808 11,854 +10% Residential 1,361 2008 2009 2010 2008 2009 2010 Business div
Slide 22: Residential reservations in Q1 2011
RESIDENTIAL RESERVATIONS IN Q1 2011 VOLUME VALUE (units, excl. Italy) (€m, incl VAT, excl. Italy) -9% 0% 2,980 485 501 2,852 2,854 458 411 19 46 -17% -20% 521 Plots of 38 651 land 466 455 2,569 -8% 420 2,201 2,333 Residential +6% Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011 Business divisions 22
Slide 23: Quarterly trend of reservations
QUATERLY TREND OF RESERVATIONS New homes reservations - France (in units) 4,042 3,225 2,998 3,071 2,569 2,540 2,333 2,201 2,016 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Nexity: all clients, excl. Italy Business divisions 23
Slide 24: Key client segments performance 2010
KEY CLIENT SEGMENTS PERFORMANCE 2010 Breakdown of clients by type (number of reserved homes, excl. Italy) 11,854 10,808 -7% 2,080 Institutional Investors 7,307 6,972 Private Investors +23% +1% 742 Other home buyers 2,060 First-time buyers 2008 2009 2010 Business divisions 24
Slide 25: Key client segments performance Q1 2011
KEY CLIENT SEGMENTS PERFORMANCE Q1 2011 Breakdown of clients by type (number of reserved homes, excl. Italy) 2,333 2,201 368 835 Institutional Investors X2 1,075 -21% 853 Private Investors 0% 161 164 Other home buyers 597 481 First-time buyers -19% Q1 2010 Q1 2011 Business divisions 25
Slide 26: Client mix
CLIENT MIX Nexity reservations breakdown by customer type (%) (excl. Italy) 14 18 Institutional 21 36% Investors 22 44 66 57 53 Private Investors 37 36% 19 20 16 7 6 7% Other home buyers 7 19 22 22 19 21% First-time buyers 12 2007 H1 2008 H2 2008 2009 2010 Q1 2011 Business divisions 26
Slide 27: Geographic trends of reservations
GEOGRAPHIC TRENDS OF RESERVATIONS Reservations by area, all clients excl. Iselection, Italy, block sales – in % 36 37 38 27 28 22 8 4 Q1 10 Q1 11 Q1 10 Q1 11 Q1 10 Q1 11 Q1 10 Q1 11 AREA A AREA B1 AREA B2 AREA C Mainly Paris region, the French Agglomerations of more Agglomerations of more Remaining
Slide 28: Price trends
PRICE TRENDS In €, all clients (excl. Iselection, Italy, and block sales) 274,067 266,236 Paris 256,678 257,054 region 232,657 242,068 197,969 194,846 212,907 185,080 176,202 Regions 185,334 189,725 184,212 2005 2006 2007 2008 2009 2010 Q1 2011 Q1 2011 Q1 2010 Average price in €/ sq.m, incl. VAT 3,6
Slide 29: Price trends
PRICE TRENDS Average price trends by private individual client type (in €, excl. Iselection, Italy, and block sales) 258,811 Home buyers 245,006 243,814 240,637 241,437 229,743 223,795 212,174 All clients 207,663 208,817 208,594 202,332 195,732 195,816 192,799 Private investors 170,201 192,204 167,5
Slide 30: Residential: Nexity market share
RESIDENTIAL: NEXITY MARKET SHARE NEXITY MARKET SHARE IN 2010 Nexity market share evolution 10.2% 10.3% 9.2% 8.6% 16.5% 8.4% 13.5% 8.2% 7.4% 9.3% 7.0% 2005 2006 2007 2008 2009 2010 Source: Meedat Business divisions 30
Slide 31: Residential: commercial launches
RESIDENTIAL: COMMERCIAL LAUNCHES Residential – new supply per year (in new homes units, excl. Iselection and Italy) 9,932 7,708 7,230 +455 1,439 1,894 2008 2009 2010 Q1 2011 Business divisions 31
Slide 32: Business potential
BUSINESS POTENTIAL Business potential for residential and subdivision* Land secured through options in Paris region & PACA +11% 30,691 27,746 9,406 Subdivision 8,689 6,076 +73% 21,285 Residential 3,505 19,057 +12% Dec. 31 2009 Dec. 31, 2010 Dec. 31, 2009 Dec. 31, 2010 * Current supply for sale + fut
Slide 33: Ecoquartier in Villarborea-Nanterre
« Ecoquartier » in Villarborea-Nanterre (92) 138 homes commercialized in a week-end out of a total of 150 units BBC, €4,000 / sq.m Business divisions 33
Slide 34: Yléo – Tripode district in Nantes
Yléo –Tripode district – in Nantes (44) 76 reservations over one week-end out of a total of 116 units BBC, €3,400 / sq.m Business divisions 34
Slide 35: Group strategy: Commercial
GROUP STRATEGY COMMERCIAL Grow Nexity market share Extend product range to target regions: business parks and “Ywood” business line Launch HEQ restructuring offer for obsolete office buildings Become the market reference for complex operations Occasionally opportunistic acquisition of sele
Slide 36: Commercial: investment market
COMMERCIAL: INVESTMENT MARKET Commercial investment market in France(1) (€bn) 27.0 11.0 12.5 4.6 7.6 2.3 2.4 2.0 1.5 2007 2008 08 2009 09 10e Q1 Q2 Q3 Q4 Q1 2010 20 11 34% increase in investments in Q1 2011 compared to Q1 2010 (1) Source: CBRE Business divisions 36
Slide 37: Rental market
RENTAL MARKET Transactions Q1 Vacancy Rents 2011 Q1 2011 (€/sq.m/year, TAKE UP IN PARIS REGION prime) (in millions of sq.m) (sq.m) Central 525,000 7.8% 800 Paris 2.7 2.4 Central 2.2 230,000 7.1% 1,166 1.8 London Munich 160,000 9.0% 360 ++ 21% 21% 0.6 Madrid 74,000 13.2% 336 Milan 81,000 11.3% 520 20
Slide 38: Commercial: current supply
COMMERCIAL: CURRENT SUPPLY NEW OFFICE DELIVERY SCHEDULE CURRENT AVAILABLE SUPPLY WITHIN PARIS REGION A YEAR, BY TYPE (IN PARIS REGION) (in sq.m) (in thousands of sq.m) 4,000 1,000,000 3,500 900,000 Available 3,000 800,000 Second hand offices 700,000 2,500 600,000 2,000 Commercia 500,000 -lized 400,0
Slide 39: Commercial: 2010 new orders & backlog
COMMERCIAL: 2010 NEW ORDERS & BACKLOG NEW ORDERS COMMERCIAL BACKLOG (€m) (€m) x3 190 556 32 Logistics 22 platforms & 390 activities 28 57 158 Offices 534 362 2009 2009 2010 2010 Dec. 31, 2009 Dec. 31, 2010 7 new orders including 3 office buildings – totalling more than 35,500 sq.m Business divisions
Slide 40: Commercial: Q1 2011 revenue & backlog
COMMERCIAL: Q1 2011 REVENUE & BACKLOG REVENUE BACKLOG (€m) (€m) 82 73 390 5 16 Logistics 28 331 platforms & activities 29 77 362 57 Offices 302 Q1 T1 2010 2010 T1 2011 Q1 2011 Dec. 31, 2010 March 31, 2011 2011 order intake target (€500 million) confirmed Business divisions 40
Slide 41: Basalte
BASALTE The fire at the construction site of the Basalte building in La Défense on March 17, 2011 was a significant event of the period. The delivery of this building, initially scheduled for the fourth quarter of 2011, will now most likely be delayed for about one year. The consequences of th
Slide 42: Commercial: a new green restructuring offer
COMMERCIAL: A NEW GREEN RESTRUCTURING OFFER Grenelle II Law: obligation for office buildings owners to complete energy efficiency upgrades within 8 years as from 2012 A key value issue for investors (discount on obsolete buildings) Market: 39 million sq.m(1), i.e. ~ €39 billion of works over t
Slide 43: Ywood: first successes
YWOOD: FIRST SUCCESSES Ywood – projects under way Espace Départemental de Solidarités or under study Ywood - Boissy Saint Léger (94) New generation offices, affordable and adapted to French regions Wood-made offices, limited (3 to 6 months) construction timeframe, meeting energy efficiency “BBC”
Slide 44: Strategy: Services & Distribution
STRATEGY SERVICES & DISTRIBUTION Services (to individuals): Improve service quality and revamp the image Boost development and gain new mandates Grow activity in serviced apartments for students and seniors Focus on selective external growth Increase operating profit Services (Corporates &
Slide 45: Services: business activity in Q1 2011
SERVICES: BUSINESS ACTIVITY IN Q1 2011 Property management Revenue (Portfolio under management) (Lamy – Saggel – Keops, €m) Residential Commercial 896,000 homes 6.4 million sq.m 109 111 102 78% Condominium management Rental managment 22% March 31, 2011 March 31, 2011 Q3 2010 Q4 2010 Q1 2011 Business
Slide 46: Development in real estate services to corporates
DEVELOPMENT IN REAL ESTATE SERVICES TO CORPORATES Real Estate: a cost driver for corporates Team merger, office location changes, space planning, cost cuts New global players in a market becoming more structured Nexity: top 5th player, active in transaction and property management Strategy
Slide 47: Existing homes market
EXISTING HOMES MARKET Number of transactions in the existing homes market – Metropolitan France +32% 814 823 829 820 810 782 800,000 673 592 600,000 400,000 200,000 0 2003 2004 2005 2006 2007 2008 2009 2010 Strong upturn in transactions Source: CGEDD - Notaries Business divisions 47
Slide 48: Distribution: franchise network in Q1 2011
DISTRIBUTION: FRANCHISE NETWORK IN Q1 2011 Franchise network* -62 +19 1,405 1,343 1,362 533 495 502 872 848 860 Dec. 31 Dec31,09 Dec. 31, 31-déc-10 31-mars-11 March 31, 2009 2010 2011 * Excl. Keops Residential Business divisions 48
Slide 49: Iselection – full year 2010
ISELECTION – FULL YEAR 2010 NOTARIZED DEEDS SIGNED REVENUE (units) (€m) +74% 3,427 147 +126% 940 Operator x3.4 2,096 1,974 634 280 82 On behalf 65 2,487 of third parties 1,694 1,462 2008 2009 2010 2008 2009 2010 Ca. 2,500 sales through network of 20 Caisses d’Epargne 2011: extension to the netwo
Slide 50: Iselection – Q1 2011
ISELECTION – Q1 2011 RESERVATIONS REVENUE (units) (€m) 647 -31% 26 444 19 359 621 164 Operator 15 On behalf 280 of third parties 3 Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011 Decrease in revenue linked to the surge in notarized deeds signed at end 2010 Business divisions 50
Slide 51: New strategic land positions
NEW STRATEGIC LAND POSITIONS Gennevilliers Asnières (92) Ca. 120,000 sq.m to be built Historic site of PSA Group along the Seine Asnières Close to RER C Designing a brand new neighborhood St Ouen Mix of offices and residential Clichy Boulogne (92) 60,000 sq.m to be built Part of former
Slide 52: Urban renewal: Villes & Projets
URBAN RENEWAL: VILLES & PROJETS Île-de-France Ermont Eaubonne 55,000* sq.m (Région Parisienne) Strasbourg Heiritz 28,900* sq.m (1) Strasbourg Asnières 120,000 sq.m (1) Lyon Boulogne 52,600* sq.m (1)(2) St-Ouen 244,000* sq.m (1) 835,000 835,000 sq.m sq.m in in portfolio portfolio Revenue Revenu
Slide 53: 3/ Financials
3/ FINANCIALS 53
Slide 54: P&L and earnings
P&L AND EARNINGS €m 2010 2009 Revenue 2,747 2,838 Current operating profit 201.4 206.4 Current operating margin 7.3% 7.3% Net financial expense (22.2) (39.3) Income tax (65.6) (59.8) Recurring profit after tax 113.6 107.3 Goodwill impairment (35.4) (121.7) Eurosic 41.3 (32) Other equity accounted co
Slide 55: 2010 revenue
2010 REVENUE Revenue (€m) -3% 2,838 +26 2,747 5 +79 31 530 -95 -101 609 476 375 1,827 1,732 2009 Residential Commercial Services Others 2010 & Distribution Financials 55
Slide 56: Q1 2011 revenue
Q1 2011 REVENUE Revenue (€m) +0.6% +17 1 555.9 559.3 0.5 130 -9 -4 -0.5 126 82 73 343 360 Q1 2010 Residential Commercial Services Others Q1 2011 & Distribution Financials 56
Slide 57: Operational performance
OPERATIONAL PERFORMANCE CURRENT OPERATING MARGIN 2010 CURRENT OPERATING PROFIT 2010 (%) (€m) 9.7% (6.4%)* 201 7.9% Services & Distribution (8.2%)* 7.3% 59 (7.3%)* Commercial 15 4.2% (7.4%)* Residential 137 Group Others -10.0 * 2009 current operating margin Financials 57
Slide 58: Residential: current operating margin
RESIDENTIAL: CURRENT OPERATING MARGIN Current operating margin per half-year (%) 13.1 8.2 8.1 8.5 7.2 6.2 H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010 Margin recovery embedded in the backlog Financials 58
Slide 59: Balance sheet at December 31st 2010
BALANCE SHEET AT DECEMBER, 31st 2010 (€m) Goodwill 1,022 1,886 Total shareholders equity Eurosic 198 Other Assets 119 WCR 359 Net Cash(1) 291 103 Provisions ASSETS LIABILITIES (1) Cash minus Financial Debt Financials 59
Slide 60: Working capital requirement
WORKING CAPITAL REQUIREMENT WCR – December, 31 2010 (€m) RESIDENTIAL 633 Unsold completed new homes -218 on March 31st. 2010: 87 83 577 Average pre-commercialization rate of 77% at the start 85 of construction over Q1 2011 359 Others 51 5 Services & COMMERCIAL Distribution 698 560 -176 Persist
Slide 61: Cash-flow
CASH-FLOW €m 2010 2009 Cash flow from operations after interest and tax payments 171 138 Change in operating WCR 176 61 Operating capital expenditure (10) (8) Free Cash-Flow 337 191 Proceeds from the sale of Crédit Foncier de France - 540 Dividend from Eurosic and other equity-accounted companies 1
Slide 62: Change in net cash position
CHANGE IN NET CASH POSITION Net cash position – 2009-2010 (€m) +€186m +337 +1 291 -86 105 -66 Dec. 31, Share Free Cash Dividend Others Dec. 31, 2009 buy back Flow paid 2010 Financials 62
Slide 63: Net cash position
NET CASH POSITION WCR & Net financial debt(1) – 2006-2010 (€m) 681 549 557 391 386 291 105 (265) (561) (563) 2006 2007 2008 2009 2010 Financial debt minus net cash Operating WCR Financials 63
Slide 64: Goodwill
GOODWILL Goodwill – December, 31st 2010 (€m) 1,047 1,022 +10 Distribution 208 -35 218 Services 560 525 Commercial 52 52 Residential 227 227 2009 Services Other 2010 changes Financials 64
Slide 65: Eurosic stake: change in valuation
EUROSIC STAKE: CHANGE IN VALUATION P&L impact (€m) Nexity +€41.3m +24.9 +0.6 -4.0 198.1 +15.8 160.8 NAV: €34.7/share EPRA NNNAV: €36.1/share NAV: €28.5/share(1) EPRA NNNAV: €30.0/share Charges booked Dec. 31, Profit excl. Change in Fair Relution directly in OCI Dec. 31, amortization value of assets
Slide 66: 4/ Outlook
4/ OUTLOOK 66
Slide 67: Backlog at March 31, 2011
BACKLOG AT MARCH 31, 2011 Backlog 16 months’ (€m) development revenue +1.7% 2,780 2,734 2,600 390 331 Commercial 2,344 2,449 +4.5% Residential Dec. 31, Dec. 31, March 31, 2009 2010 2011 Outlook 67
Slide 68: Nexity Demain
NEXITY DEMAIN An ambitious multi-year project: From the first fully-integrated real estate player… … to the Reference Brand in the real estate business Serve customers as their real estate needs evolve throughout their lives Outlook 68
Slide 69: Nexity Demain
NEXITY DEMAIN SINGLE BRAND Become the benchmark for real estate client relations Get closer to clients Identify a benchmark: create a reflex Develop new offerings Enhance communication effectiveness Develop complementary activities Build brand value Meet all real estate needs, Embody
Slide 70: Dividend
DIVIDEND Dividend per share (€ per share) 2.00 1.90 2.00 1.60 1.50 1.60 1.0 2004 2005 2006 2007 2008 2009 2010 Outlook 70
Slide 71: Guidance 2011
GUIDANCE 2011 Residential: 10% market share based on an expected market of around 105,000 new homes Commercial: new order intake target of €500 million Consolidated revenue for 2011 expected to be around €2.7 billion Current operating margin above 8% excluding Nexity Demain related charges
Slide 72: 5/ Appendices
5/ APPENDICES 72
Slide 73: Residential business model
RESIDENTIAL BUSINESS MODEL Housing operation scheme Exercise of land option Option on land Construction start Delivery Pre-commercialization: Commercialization, transfer of ownership, Commercialization rate 6-12 months construction: 18-24 months Revenue recognition 100% 100% 60% 50% 5% at reservatio
Slide 74: Residential data
RESIDENTIAL DATA Number of households - France (Millions) CAGR +1.1% 27.1 29.7 25.7 21.5 23.8 Approx. 250,000 new households RESIDENTIAL: per year STRONG between 2005 and 2020 FUNDAMENTALS 1990 1999 2005 2010e 2020e HOME OWNERSHIP HOUSEHOLD INDEBTEDNESS (% of population) (In % of gross disposable in
Slide 75: Demographic trends
DEMOGRAPHIC TRENDS Household number - France (in million) French population increasing again 35 in 2010: Av. growth per year +1.1% 828,000 births 29.7 30 Life expectancy: +4 months 27.1 25.7 65 millions inhabitants, 23.8 25 an increase of 327,000 people 21.5 over the year 20 72.3 millions
Slide 76: Residential: sales & new supply
RESIDENTIAL: SALES & NEW SUPPLY New homes offer Q1 2003 – Q1 2011 (number of units, apartments) Q1 11 vs Q1 10 -15.9% +6.5% Sales New supply 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 77: Client profile
CLIENT PROFILE Average annual revenue by private individual client type (in € thousands, excl. Iselection, Italy) 84.4 84.5 79.5 79.1 Private investors 78.3 73.3 70.8 68.9 66.3 Other home 59.5 buyers 53.3 53.2 54.3 46.7 49.6 48.3 40.4 39.9 41.6 37.8 36.3 38.1 36.8 First-time 34.0 buyers 2003 2004 20
Slide 78: Price trends per area
PRICE TRENDS PER AREA All clients, excl. block sales, Italy and Iselection (in €/sq.m) 4€4,700 700 € +6% Area A 4€4,200 200 € 3€3,700 700 € +5% Area B1 3€3,200 200 € Area B2 +5% 2€2,700 700 € Area C +8% 2€2,200 200 € 2006 2007 2008 2009 2010 Appendices 78
Slide 79: New homes: cost base
NEW HOMES: COST BASE New homes factory price breakdown (avg. cost of programs - 2010) EVOLUTION OF CONSTRUCTION COST INDEX Financial costs 100% Marketing and 2.4% 7.7% advertising Fees and 13.7% insurance Q4 2010 vs. Q4 2009 : +2% 1,500 Cost of 50.3% construction 1,300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 80: Client profile
CLIENT PROFILE Customer profile in 2010 (excl. block sales, Italy and Iselection) First-time buyers Private investors Home owner BREAKDOWN(1) 19% 56% 6% AGE 35 years 46 years 50 years ANNUAL REVENUE €36,774 €84,493 €66,259 AREA 68 sq.m 52 sq.m 81 sq.m AVERAGE BUDGET €216,961 €192,166 €334,493 (1) In
Slide 81: Recurring tax incentives
RECURRING TAX INCENTIVES Breakdown of reservations by type of customer – in % Number of reservations (Units) 125,000 100,000 63 69 67 54 62 75,000 53 Private 55 35 68 78 investors 24 30 36 35 50,000 60 65 25,000 48 51 50 50 50 53 44 37 39 49 38 40 Owners 0 1997 1998 1999 2000 2001 2002 2003 2004 200
Slide 82: PTZ+ (new zero-rate loan): some examples
PTZ+ (NEW ZERO-RATE LOAN): SOME EXAMPLES 1. Example in A area Couple with 2 children, with €4,500 monthly revenue, buying an energy efficient (BBC) new home – loan maximum amount: With PTZ: €27,500 Maturity 6 years With PTZ+: €124,800 Maturity 20 years 2. Example in B1 area Couple with 2 children,
Slide 83: French areas for buy-to-let investment
FRENCH AREAS FOR BUY-TO-LET INVESTMENT Breakdown of french territory % of % of territory population AREA A 1% 19% (IdF, French riviera, genevois Français) AREA B1 5% 21% (agglomeration ≥ 250,000 inhabit.) AREA B2 8% 22% (agglomeration ≥ 50,000 inhabit.) AREA C 86% 38% (Rest of French areas) AREA A,
Slide 84: Investment & asset management
INVESTMENT & ASSET MANAGEMENT Investor & asset manager Mainly offices in Paris region Co-investment: club deals with Nexity Alfortville (94) as a minority shareholder and Nexity Reim as asset manager Group synergies: development, property management, broker Ca €19m committed in operations to
Slide 85: Credit facilities
CREDIT FACILITIES Credit Facilities at December 31, 2010 (€m) Committed Maturity Drawdown Nexity Logement Corporate Facility 285 2013 22 Commitments to minorities 39 2012 39 External growth Facilities 242 2013 242 TOTAL CORPORATE FACILITIES 566 - 303 Project-related debts 296 - 141 TOTAL 862 444 Fai
Slide 86: Corporate funding
CORPORATE FUNDING Debt structure and amortizing profile (€m) Gross debt: €444m(1) Ad hoc facilities Corporate facilities amortizing profile by operations 74 35 192 Corporate facilities 1 1 Dec.31, 2011 2012 2013 2014 >2015 2010 Net cash position at December 31, 2010: €291m (1) Excl. fair value of fi
Slide 87: Eurosic
EUROSIC 2010 12.31.2010 12.31.2009 Chge Long term leases signed on 52 Hoche (Paris 8ème) with Allen & Overy and Jazz (Boulogne- Portfolio Value (€m)(1) 1,387 1,352 +2.7% Billancourt) with Michelin Average leases residual maturity Financial occupancy 92.1% 86.1% +6% of 7 years rate Asset arbitr
Slide 88: Eurosic: portfolio
EUROSIC: PORTFOLIO 1,352 +2.6% 1,387 +34 -76 +78 Value Capex Asset Fair Value Value 12/31/09 disposals change 12/31/10 Gross yield*: 7.5% Gross yield*: 6.8% Value 12/31/2010 12/31/2009 Offices 1,092.8 1,016.6 Diversification 294.7 335.3 TOTAL 1,387.5 1,351.9 (*) Excl. transfer rights Appendices 88
Slide 89: Covenants
COVENANTS Covenants – Dec. 31th, 2010 GEARING LEVERAGE INTEREST COVERAGE Net Fin. Debt / Net Fin. Debt excl. projects / Consolidated Ebitda / Consolidated equity Consolidated EBITDA Interest charges 13.0 ≤3 ≤2 ≥ 2.5 0.0 0.0 Covenant Nexity Covenant Nexity Covenant Nexity Threshold Ratios Threshold R
Slide 90: Shareholding structure
SHAREHOLDING STRUCTURE April 30, 2011 52,264,877 shares Free float 37.6% Management & employees 9.8% GENERALI 5.2% Fond Stratégique d’Investissement* 5.5% Caisses d'Epargne 41.9% (BPCE Group) * As from July 15, 2009; FSI is held by Caisse des dépôts 51% and French State 49% Appendices 90