Nexity Sa · EURONEXT:NXI
Nexity Sa — ESG Presentation (October 2019)
63 slides from Nexity Sa's sustainability presentation, October 2019
Slide 1: CSR Presentation October 2019
CSR PRESENTATION OCTOBER 2019
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 2. CSR STRATEGY 3. GOVERNANCE 4. APPENDIX Nexity / CSR Presentation – October 2019 3
Slide 4: Nexity at a Glance
1. NEXITY AT A GLANCE
Slide 5: Nexity well-placed to respond to and benefit from macro trends
NEXITY WELL-PLACED TO RESPOND TO AND BENEFIT FROM MACRO TRENDS HELP MEET DEMOGRAPHIC SEIZE OPPORTUNITIES INCORPORATE NEW USES CONSERVE RESOURCES AND SOCIAL PRIORITIES ARISING FROM CONTINUING AND THINK ABOUT FUTURE URBANISATION USES # Structural growth in demand for # Nexity, leading position in # In
Slide 6: Our real estate services platform
OUR REAL ESTATE SERVICES PLATFORM : DEVELOPMENT, MANAGEMENT, ADVISORY, BROKERAGE… INDIVIDUAL CLIENTS COMMERCIAL CLIENTS ‒ Development of new homes ‒ Commmercial development (offices, (homebuyers, investors, professional logistics, hotels, retail premises...) landlords) ‒ Property management, commerc
Slide 7: Dynamic business activity
DYNAMIC BUSINESS ACTIVITY REVISED UP Residential Real New home reservations in France • +15% in volume Growth in Nexity’s market share in a stronger Estate • +15% in value than expected new home market in 2019 (between -2% and -4%(1) compared to 2018) Services to Serviced Residences • Seniors (Domit
Slide 8: Financial performance progressing
FINANCIAL PERFORMANCE(1) PROGESSING REVISED UP(2) Revenue +18% ; €1,840m Revenue and EBITDA expected to grow by around 7% +22% ; €226m (compared to at least 5% previously) EBITDA Current Operating Profit -8% ; €125m Net profit before non recurring items -27% ; €52m Net financial debt before lease li
Slide 9: CSR Strategy
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Slide 10: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 2018 KEY CSR INDICATORS ▪ Women make up 31% of Nexity’s Club 100 members ▪ 10% decrease in carbon footprint per employee relative to 2014 ▪ 90% of (residential) development projects with a low-carbon assessment study at design phase ▪ 12 condominium properties renovat
Slide 11: Our CSR performance
OUR CSR PERFORMANCE 2018: A-List 2018: +3 points in the overall score compared to 2017 General ranking → 12th out of 230 2018: C rating, which places Nexity in the top 25% for its sector Nexity / CSR Presentation – October 2019 11
Slide 12: The main CSR risks
THE MAIN CSR RISKS Nexity maps all of the risks that may impact its business activities, image, reputation and financial results. This risk mapping allows for these risks to be categorised, summarised and assessed. Social risk (HR) Environmental risk Societal risk – linked to cities Societal risk –
Slide 13: Our CSR strategy built through a dialogue with stakeholders
OUR CSR STRATEGY BUILT THROUGH A DIALOGUE WITH STAKEHOLDERS Stakeholders expectations Stakeholders Commitee Nexity ensures that it is in constant discussion with its various In 2018, Nexity set up a Stakeholders Commitee stakeholders in order to better understand their expectations comprising around
Slide 14: The four pillars of CSR policy…
THE FOUR PILLARS OF CSR POLICY… Nexity / CSR Presentation – October 2019 14
Slide 15: Solutions for sustainable cities
…INTEGRATED INTO THE OVERALL OF NEXITY’S OFFERS FROM DESIGNING TO MANAGING OPERATIONS… # INTEGRATED REAL ESTATE SERVICES PLATFORM Planning Development Property Management Brokerage # SOLUTIONS FOR SUSTAINABLE CITIES Climate Biodiversity Bien-être Empreinte et QVT Socio-éco Circular economy Mobility
Slide 16: …to create social and environmental value through engagements
…TO CREATE SOCIAL AND ENVIRONMENTAL VALUE THROUGH 5 ENGAGEMENTS Being recognised as a preferred employer Designing sustainable, responsible cities Promoting a better access to housing and higher-quality neighbourhoods Offering better building practises for higher quality of life at work Upholding hi
Slide 17: Being recognised as a preferred employer
CSR strategy Being recognised as a preferred employer
Slide 18: Employee shareholding, a retention factor
EMPLOYEE SHAREHOLDING, A RETENTION FACTOR # Group employee savings plans # Free allocation of shares 200,000 shares granted to 7,000 group employees in 2018 70% of the workforce owned Nexity shares at 31 December 2018 (excluding Ægide-Domitys employees) 62% of the employees use the employee savings
Slide 19: Diversity and integration
DIVERSITY AND INTEGRATION, FOSTERING REWARDS AND GREATER COMMITMENT # Promoting the employment of workers with disabilites # Developing social and cultural diversity # Strengthening gender equality 35% of women within the Nexity Club 100 Performance in 2018: 31% Nexity / CSR Presentation – October 2
Slide 20: Quality of life at work
QUALITY OF LIFE AT WORK, MAJOR ATTRACTIVENESS ISSUE # Continous improvement initiative with Great Place to Work® # Balance between personal and professional life # Mobile working 2,000 eligible and voluntary employees work from home one day per week Performance in 2018: 1,610 employees Solstys - Par
Slide 21: Inclusion and solidarity in the city
INCLUSION AND SOLIDARITY IN THE CITY # Educational projects, initiatives to get people into work and outreach programmes # Fighting against poor housing 2,000 employees committed to solidarity Performance in 2018: 509 employees Nexity / CSR Presentation – October 2019 21
Slide 22: Designing sustainable, responsible cities
CSR strategy Designing sustainable, responsible cities
Slide 23: The Group's climate strategy
THE GROUP’S CLIMATE STRATEGY > THE CARBON TRAJECTORY, A NEW LONG-TERM TARGET IMPLEMENTED ON 3 SCOPES Residentiel Real Estate 841,048 tCO2e In the wake of COP 21 and 22, Nexity developed 85% a climate trajectory that builds on the commitments made by France as part of the Corporate Paris Agreement Co
Slide 24: Residential real estate
RESIDENTIAL REAL ESTATE -30% of greenhouse gases emissions per home delivered (2015 basis) -3,6% in 3 years (2015-2018) Nexity / CSR Presentation – October 2019 24
Slide 25: Commercial real estate
COMMERCIAL REAL ESTATE -21% of greenhouse gases emissions per square metre of office floor area deliverded (2015 basis) -5,5% in 3 years (2015-2018) Nexity / CSR Presentation – October 2019 25
Slide 26: Administrative sites
ADMINISTRATIVE SITES -35% of greenhouse gas emissions per employee (2014 basis) -10,3% in 4 years (2014-2018) Calculation methodologies not comparable for 2015 and 2016 Nexity / CSR Presentation – October 2019 26
Slide 27: Our expertise in sustainable cities
OUR EXPERTISE IN SUSTAINABLE CITIES # 5-hectares urban campus # Partnering with excellence One national demonstrator of Nexity’s expertise in sustainable cities Nexity / CSR Presentation – October 2019 27
Slide 28: Our pilot based approach on circular economy
OUR PILOT BASED APPROACH ON CIRCULAR ECONOMY # Resources diagnosis # Circular dismantling methodology 30% of projects and services based on a circular economy approach Performance in 2018: 6,9% Ovation Magellan - Colombes Nexity / CSR Presentation – October 2019 28
Slide 29: Social inclusion serving professionalisation
SOCIAL INCLUSION SERVING PROFESSIONALISATION # Integration of social inclusion clauses 11% of the construction sites launched or validated by the Land Purchasing Committee are affected by such clauses in 2018 102.214 hours of social inclusion support carried out in 2018 + 58% more than in 2017 Les D
Slide 30: Better access to housing and higher-quality neighbourhoods
CSR Strategy Better access to housing and higher-quality neighbourhoods
Slide 31: Nexity Non Profit, housing solutions for those most in need
NEXITY NON PROFIT, HOUSING SOLUTIONS FOR THOSE MOST IN NEED Create 1,000 places in family shelters per year over the next three years Performance in 2018: construction launch of the 1st operation Expectations to file building permits for around 500 houses in 2019 Nexity / CSR Presentation – October
Slide 32: Wood products, a major lever to reduce carbon footprint
WOOD PRODUCTS, A MAJOR LEVER TO REDUCE CARBON FOOTPRINT # Access Design products : ▪ Collective housing ▪ Single-family houses ▪ Student residences Photo opération Double production of timber-frame housing (2015 basis) Performance in 2018: +45% Access Design – Aix-en -Provence Nexity / CSR Presentat
Slide 33: Nature in cities, a shelter for biodiversity
NATURE IN CITIES, A SHELTER FOR BIODIVERSITY AND ACTIVITIES # Preserving biodiversity # Reintroducing nature into the city 50% of projetcs with plantes area Performance in 2018: 16% ZAC PSA – Asnières-sur-Seine Nexity / CSR Presentation – October 2019 33
Slide 34: Eugenie, the mobile application connecting the housing
EUGENIE, THE MOBILE APPLICATION CONNECTING… … the housing Roller blinds, heating system, lights, smoke detector Alarm / telesurveillance Electric consumption monitoring Services and emergency breakdown service 1 application 8 functionnalities In 2018: 9 residences delivered 221 connected housings Ne
Slide 35: Nexity, a leading player in energy transition
NEXITY, A LEADING PLAYER IN ENERGY TRANSITION # 2015 : signature of the official French charter on the energy-efficient renovation of condominiums, launched in line with the recommendations of the Plan Bâtiment Durable # 2018: signature of a Green Deal with the Plan Bâtiment Durable « The ambition o
Slide 36: Better building practises for higher quality of life at work
CSR Strategy Better building practises for higher quality of life at work
Slide 37: Our expertise in wooden frame offices and retail property
OUR EXPERTISE IN WOODEN FRAME OFFICES AND RETAIL PROPERTY # Two products : Ywood and Térénéo # 84,000 sq.m of timber-frame office space delivered since 2011 of which 29,300 sq.m in 2018 33% of delivered projects will be timber-frame structures Ywood Palazzo Méridia – Nice Performance in 2018: 47% Ne
Slide 38: Biodiversity in our commercial projects
BIODIVERSITY IN OUR COMMERCIAL PROJECTS # Promoting biodiversity as a well-being factor # Involving employees 100% of new, renovated/redeveloped commercial projects including planted areas Performance in 2018: 100% Les Magasins Généraux – Pantin Nexity / CSR Presentation – October 2019 38
Slide 39: Design efficient offices and ensure sustainable use of office
DESIGN EFFICIENT OFFICES AND ENSURE SUSTAINLABLE USE OF OFFICE # Occupancy cost guarantee # Monitoring environmental annexes Increase in the number of turnkey projects with cost guarantees Performance in 2018: 3% Le Nuovo – Clichy-la-Garenne Nexity / CSR Presentation – October 2019 39
Slide 40: Governance
3. GOVERNANCE
Slide 41: Upholding high standards in corporate governance and business ethics
CSR Strategy Upholding high standards in corporate governance and business ethics
Slide 42: A board deeply involved
A BOARD DEEPLY INVOLVED DIVERSITY DIRECTOR’S FEES 44% women Compliant with AFEP/MEDEF Code and with Law of 27/01/2011 €280k** 10 Directors o/w Average age: 59 Unchanged since 2005 1 Director representing the Maximum one third of the Board Fees based uniquely on attendance at meetings of the Board an
Slide 43: Boards of directors composition
BOARDS OF DIRECTORS COMPOSITION Remuneration, Audit and Accounts Investment Appointments and CSR Chairman Board of Directors Independent Committee Committee Committee Alain Dinin Chairman Deputy Chairman Luce Gendry Senior Independent Director ✓ Jean-Pierre Denis Director Charles-Henri Fil
Slide 44: Competences of the boards
COMPETENCES OF THE BOARDS IT Strategy ad Real Estate and RE Financial services CSR – energy and Finance Governance and investments financing (bank and insurance) environment digital Luce Gendry Jean-Pierre Denis Charles-Henri Filippi Jérôme Grivet Soumia Bel
Slide 45: Change in governance from 22 May 2019
CHANGE IN GOVERNANCE FROM 22 MAY 2019 Following the renewal of Alain Dinin’s term of office at the Shareholders’ meeting of 22 May 2019, the Board of Directors validated the separation of the duties of Chairman and CEO: • As Chairman of the Board of Directors, Alain Dinin will work with the Board to
Slide 46: Business ethics
BUSINESS ETHIICS # UN Global Compact commitment in 2018 10 principles related to Human Rights, Labour, Environment and Anti-corruption # Code of Conduct – available on Nexity’s website # Code of Ethics for suppliers 100% of employees trained in preventing corruption Performance in 2018: 100% of empl
Slide 47: Appendix
4. APPENDIX
Slide 48: Being recognised as a preferred employer
BEING RECOGNISED AS A PREFERRED EMPLOYER Quantitative targets – Internal Clients Maturity 2018 Performance 75% of employees have an annual interview with their manager 2018 79% 62% of employees use the employee savings scheme and benefit from employer matching 2020 61% contributions over the year (f
Slide 49: Better access to housing and higher-quality neighbourhoods
BETTER ACCESS TO HOUSING AND HIGHER-QUALITY NEIGHBOURHOODS Quantitative targets – Individual Clients Maturity 2018 Performance Continue to lead the market (>20% market share) in reduced VAT zones and remain the number-one partner of social 2020 24% housing Be the No. 1 operator in intermediate housi
Slide 50: Better building practices for higher quality of life at work
BETTER BUILDING PRACTICES FOR HIGHER QUALITY OF LIFE AT WORK Quantitative targets – Commercial Clients Maturity 2018 Performance 50% of projects launched bear the E+C- label 2020 100% of renovations awarded thermal performance certification on delivery of works No CSR reporting system in place in 20
Slide 51: Designing sustainable, responsible cities
«DESIGNING SUSTAINABLE, RESPONSIBLE CITIES Quantitative targets – Local Authority Clients Maturity 2018 Performance One national demonstrator of Nexity’s expertise in sustainable cities 2020 Yes Increase use of new construction methods such as cross-laminated timber (CLT) 2020 Yes Mobility diagnosis
Slide 52: Upholding high standards in corporate governance and business ethics
UPHOLDING HIGH STANDARDS IN CORPORATE GOVERNANCE AND BUSINESS ETHICS Quantitative targets – Towards civil society Maturity 2018 Performance Belong to a network and/or organisation to combat corruption: the United Nations Global 2018 Yes Compact A Board Committee dedicated to CSR strategy 2018 Yes Va
Slide 53: Other CSR indicators (1/2)
OTHER CSR INDICATORS (1/2) Employee Data 2018 2018 Breakdown of employees by gender Average lenght of service of Group 7.5 years employees Number of women 6,661 66% Management-level 7.7 ans Management-level 2,010 Non-management staff 7.4 ans Non-management staff 4,651 Turnover rate 13,3% Number of m
Slide 54: Other CSR indicators (2/2)
OTHER CSR INDICATORS (2/2) Environnemental data 2018 Climate Trajectory Share of homes passing before the Acquisition Committee (CA) including thermal solar energy or solar panel systems 15% Share of homes delivered including thermal solar energy or solar panel systems 31% Impact of construction sit
Slide 55: Nexity in 2018
NEXITY IN 2018 2018 REVENUE* 2018 EBITDA ** (in €m) (in €m) ▪ Services represent: €971m revenue and 69 65 7 €201m EBITDA 512 ▪ Or: 23% of total revenue and 902 €4,135m €523m 284 38% of total EBITDA 2,648 194 2.267 74% ▪ Contribution of services * o/w Other activities for €4m ** o/w Other activities
Slide 56: Nexity's ownership structure
NEXITY’S OWNERSHIP STRUCTURE 30 JUNE 2019 56,129,724 shares(1) ▪ Share buyback programme: to Crédit Mutuel Arkéa 5.3% offset the dilution potentially 5.3% 14.8% caused by the vesting of free A. Dinin, New Port (2) and other Nexity’s 14.8%* shares plans managers belonging to the concert group 3.4% ▪
Slide 57: 2019 remuneration policy for Alain Dinin
2019 REMUNERATION POLICY FOR ALAIN DININ CEO until 22 May 2019 Chairman starting 22 May 2019 > Non-cumulative holding of a corporate office with an employment contract: since the Company’s establishment > No supplementary pension plan since the Company’s establishment > No performance shares since 2
Slide 58: 2019 remuneration policy for Jean-Philippe Ruggieri
2019 REMUNERATION POLICY FOR JEAN-PHILIPPE RUGGIERI Deputy CEO until 22 May 2019 CEO starting 22 May 2019 > Work contract maintained up to 22 May 2019 / Remuneration as Company officer from 22 May 2019 > Breakdown fixed component (€500k) / variable (€250k) if targets reached at 100% > Annual variabl
Slide 59: 2019 remuneration policy for Jean-Philippe Ruggieri
2019 REMUNERATION POLICY FOR JEAN-PHILIPPE RUGGIERI Deputy CEO until 22 May 2019 CEO starting 22 May 2019 Annual variable remuneration criteria Min* Max Common quantitative goals (65%) 45% based on meeting the EBITDA target 0% 100% 10% based on meeting the CSR target (employee commitment and progres
Slide 60: 2019 remuneration policy for Julien Carmona
2019 REMUNERATION POLICY FOR JULIEN CARMONA Deputy CEO > Work contract maintained up to 22 May 2019 / Remuneration as Company officer from 22 May 2019 > Breakdown fixed component (€500k) / variable (€250k) if targets reached at 100% > Annual variable remuneration based on common quantitative goals (
Slide 61: 2019 remuneration policy for Julien Carmona
2019 REMUNERATION POLICY FOR JULIEN CARMONA Deputy CEO Annual variable remuneration criteria Min* Max Common quantitative goals (65%) 45% based on meeting the EBITDA target 0% 100% 10% based on meeting the CSR target (employee commitment and progress in Nexity’s policy) - 5% according to voluntary t
Slide 62: Free performance share awards
FREE PERFORMANCE SHARE AWARDS > Authorised amount: 1% of the share capital > Target: strengthen staff loyalty Authorisations Awards Percentage (number of shares rounded (number of shares rounded Awards / authorisations to the nearest thousand) to the nearest thousand) 2014 540,000 423,000 78% 2015 5
Slide 63: 19, rue de Vienne 75 008 Paris Tél. : +33 (0)1 85 55 12
19, rue de Vienne 75 008 Paris Tél. : +33 (0)1 85 55 12 12