Nexity Sa · EURONEXT:NXI
Nexity Sa — FY2022 Earnings Presentation
36 slides from Nexity Sa's earnings presentation, Feb 22, 2023
Slide 1: 2022 Full-year results
2022 Full-year results Webcast – 22 February 2023
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: Highlights
01 Highlights Véronique Bédague Chairwoman and CEO v
Slide 4: 2022 Objectives achieved
2022 OBJECTIVES ACHIEVED Unique resilience in a declining market TARGETS ACHIEVEMENTS Market Stable at 157,000 units* -26% at 120,000 units** New home market share > 14% 15% Revenue > €4.6 billion €4.7 billion Operating margin Around 8% 7.8% Indebtedness under control: 2.1x EBITDA, well below 2026 s
Slide 5: Strict capital allocation
STRICT CAPITAL ALLOCATION Strengthened selectivity INTERNATIONAL UNAUTHORISED LAND EXTERNAL GROWTH Halting business Good asset turnover Angelotti (October 2022) Land acquisition ~+€100m Stable landbank at €280m Disposal initiated IFRS 5 reclassification Land authorised Leader in Occitanie in urban p
Slide 6: Balance sheet structure
BALANCE SHEET STRUCTURE Indebtedness under control, financing secured INDEBTEDNESS UNDER CONTROL RENEWED CORPORATE CREDIT 30 June 2022 31 December 2022 Maturity 2028 Syndicated credit line €800m €878m €820m 2.3x EBITDA 2.1x EBITDA ▪ Extended pool of lenders ▪ Valuation of the Group's CSR commitments
Slide 7: A €22 billion pipeline in France providing visibility
A €22 BILLION PIPELINE IN FRANCE PROVIDING VISIBILITY PIPELINE €21.7bn ~ 6 years of activity Business Revenue on a Backlog** percentage of Potential* €6bn €16bn completion ~ 2 years of activity ~ 4 years of activity basis Reservations Construction completion on deeds signed * Total volume of future
Slide 8: Dividend paid in May 2023
DIVIDEND PAID IN MAY 2023 €2.50 per share* 2.40 2.50 2.50 2.50 2.50 2.20 2.00 2.00 2.00 2.00 in € per share 133 140 138 138 ~140 In €m 121 110 111 108 108 Paid in: 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e * Subject to approval by the General Shareholders’ Meeting of 16 May 2023 8
Slide 9: Sustainable city leader
SUSTAINABLE CITY LEADER Pionneering in real estate sector decarbonation • 2022 performance: overperformance >10% compared to regulatory requirements for building permits filed • SBTi certification 1,5°C of the carbon trajectory: underway, expected to be achieved in 2023 • New 2022-2025 Green deal •
Slide 10: Business activity
02 Business activity
Slide 11: A. Residential real estate
02 A. Residential real estate Stéphane Dalliet Residential real estate Managing Director
Slide 12: A difficult housing market
A DIFFICULT HOUSING MARKET An unexpectedly large market downturn 2022 MORTGAGE RATES FOR 2022 PRODUCTION 2022 NEW HOME INDIVIDUALS OF MORTGAGE RATES RESERVATIONS In number of mortgages granted, December 2020 basis Change vs. quarter 2021 x2.4 Total reservations Retail sales yoy -10% 2.59% 105 2.34%
Slide 13: Residential real estate: outperformance driven by bulk sales
RESIDENTIAL REAL ESTATE Nexity's outperformance driven by bulk sales NEW HOME MARKET ESTIMATION NEXITY’S NEW HOME RESERVATIONS In volume (number of units) In volume (number of units) -26% -10% 161,838 20,101 18,015 43,601 ~120,000 9,223 +5% BULK SALES 9,707 BULK SALES 118,237 RETAIL -24% SALES 10,87
Slide 14: Strengthened leadership in residential
STRENGTHENED LEADERSHIP IN RESIDENTIAL Continued improvement in market share 2030 Ambition 20% Nexity’s new home reservations Nexity’s market share 14.7% ~15%* 12.2% 11.4% 10.7% 10.9% 12.4% 10.2% 9.8% 9.6% 9.6% 9.0% 9.1% 20,351 19,999 20,101 18,351 19,060 18,015 15,893 11,804 11,424 11,741 10,191 10
Slide 15: Residential real estate: an agile business strategy, prices up
RESIDENTIAL REAL ESTATE An agile business strategy, prices up (in units) VOLUME -10% Bulk sales Retail sales 18,015 RETAIL SALES 20,351 19,999 20,101 reservations Volume: -24%, Value: -19% (vs 2021) 37% 46% 53% ▪ Rising mortgage rates 54% ▪ Sales prices per sq.m: +2.5% 63% 54% 47% 46% 2019 2020 2021
Slide 16: A low risk supply-for-sale
A LOW RISK SUPPLY-FOR-SALE Time-to-market* still dynamic DIVERSIFIED AND ADPATED SUPPLY-FOR-SALE LOW RISK SUPPLY-FOR-SALE 6.8 Completed homes 5.2 < 100 units 4.3 4.4 Under construction 29% 10,153 8,787 7,161 7,655 In project phase 70% 2019 2020 2021 2022 Time-to-market Supply-for-sale Time-to-market
Slide 17: B. Commercial real estate
02 B. Commercial real estate Jean-Claude Bassien Deputy CEO
Slide 18: Transforming and bottom cycle offices market
TRANSFORMING AND BOTTOM CYCLE OFFICES MARKET GLOBAL INVESTMENTS VOLUME* GEOGRAPHICAL BREAKDOWN OF INVESTMENTS* (In €m) (In €m) 40.000 35.000 30.000 Paris region Outside Paris region 25.000 20.000 15.000 10.000 5.000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 19: Capitalizing on the Nexity regional network
BUSINESS ACTIVITY CAPITALIZING ON THE NEXITY REGIONAL NETWORK Order intake mainly from outside the Paris region Ekinoks – Lens (62) 30% Wood-frame offices Delivery Q2 2024 Level targeted Good €190m La Garenne-Colombes (92) B2 and Cœur blocks Delivery Q2-Q3 2024 70% New Construction 2017 E2C1 level E
Slide 20: 2022 Highlights
2022 HIGHLIGHTS DELIVERY OF NEXITY'S NEW REGIONAL ADVANCING THE ECO CAMPUS AT HEADQUARTERS IN LYON VAISE LA GARENNE-COLOMBES Bringing together nearly 600 employees from 9 subsidiaries Delivery in 2024 ~50% of completion at end-2022 Very good -20% 20
Slide 21: C. Services
02 C. Services Jean-Claude Bassien Deputy CEO
Slide 22: Strong growth in services: €938m (+10%)
STRONG GROWTH IN SERVICES: €938m (+10%) Driven by the Serviced properties activities PROPERTY MANAGEMENT: €382m DISTRIBUTION: €340m SERVICED PROPERTIES: €217M 41% of revenue* 36% of revenue* 23% of revenue* Condominium and rental management, Sales through bank networks Flexible commercial real estat
Slide 23: Nexity pioneer in eco-renovation
NEXITY PIONNEER IN ECO-RENOVATION Recognised expertise in energy renovation SOUS -TITRE FOR RESIDENTIAL FOR COMMERCIAL Condominiums: 45 contracts to support compliance technical, social and financial support TERTIARY with the tertiary sector decree DECREE 400 BUILDINGS >75 condominiums renovated or
Slide 24: Financial results
03 Financial results Nadia Ben Salem-Nicolas Deputy CEO in charge of finance v
Slide 25: Consolidated income statement
CONSOLIDATED INCOME STATEMENT o/w disposed 2021 activities and 2021 Change In € million 2022 Released non-reccuring Restated* 2022/2021 items Revenue 4,837 211 4,625 4,704 2% Operating profit 528 157 371 367 -1% As of % of revenue 10.9% - 8.0% 7.8% Net financial income/(expense) (87) (13) (75) (65)
Slide 26: 2022 key figures by business lines
2022 KEY FIGURES BY BUSINESS LINES REVENUE CURRENT OPERATING PROFIT +2% vs 2021* Maintaining high profitability at 7.8% Services Development Services Development €938m €3,766m €92m €328m 20% 22% 2.267 2.267 8% €4,704m 74% 11% €367m 74% ** 67% 72% Residential Real Estate Commercial Real Estate Servic
Slide 27: Revenue: +2%
REVENUE: +2% Growth driven by Services activities (in €m) Residential Real Estate Commercial Real Estate Services +3% 3,279 3,385 +10% 938 853 -23% 492 380 2021 2022 2021 2022 2021 2022 Residential Real Estate Angelotti contribution for 2 months : 45 M€ 27
Slide 28: Current operating profit
CURRENT OPERATING PROFIT Increased profitability in all business lines (in €m and in % of revenue) Residential Real Estate Commercial Real Estate Services 8.3% 8.4% 9.8% 8.7% 11.9% 11.9% 271 283 92 74 59 45 2021 2022 2021 2022 2021 2022 28
Slide 29: Balance sheet as of 31 December 2022
BALANCE SHEET AS OF 31 DECEMBER 2022 (in €m) Goodwill 1,398 2,036 Equity* Other assets 251 Right-of-use assets 716 100 Provisions 779 Lease liabilities (IFRS 16) WCR 1,324 820 Net financial debt Net assets held for sale 45 Actif Assets Passif Liabilities Total Balance sheet: €3,734m * Incl. non-cont
Slide 30: Working capital requirement
Working capital requirement Controlled growth in an adverse environment In € million Dec. 2021 June 2022 Dec. 2022 Residential Real Estate 1,029 1,152 1,166 French Residential Real Estate: ▪ Stable WCR vs 30 June 2022 Commercial Real Estate 24 64 123 ▪ Annual increase considers the increase in set-u
Slide 31: Net debt: +€220m over the year
NET DEBT: +€220m OVER THE YEAR Leverage ratio well below covenants and 2.5x EBITDA ceiling H1 2022: +€280m H2 2022: -€58m 878 -28 820 +138 -135 +105 +142 598 Dont Δ WCR: +€52m o/w Δ WCR: +€196m 31-Dec-21 Free cash-flow Dividends 30-June-22 Free cash-flow Financial IFRS 5 31-Dec-22 investments reclas
Slide 32: Financial structure
FINANCIAL STRUCTURE No refinancing deadline before 2025 NET DEBT STRUCTURE LONG TERM DEBT MATURITY Dec. June Dec. In € m 321(3) 2021 2022 2022 220(6) Long term debt Bond issues and (fixed rate) commitments to purchase minority 994 999 976 30(2) 156(5) 53% interests Short term debt Bank debt and 132(
Slide 33: Conclusion
04 Conclusion Véronique Bédague Chairwoman and CEO v
Slide 34: Becoming a global real estate operator
BECOMING A GLOBAL REAL ESTATE OPERATOR A medium-term ambition, an asset in the short-term context Leader’s premium Leader in sustainable cities For business activity and cost control Pioneering in Real estate sector decarbonation Bulk sales 54% New offers Stepping up in managed real estate An offeri
Slide 35: 2023 Outlook
2023 OUTLOOK An adjustment phase for the new home market FIRST HALF 2023 SECOND HALF 2023 A wait-and-see market Progressive recovery French new home market Interest rates Construction costs ▪ Impact on reservations ▪ Business activity to restart ▪ Temporary impact on profitability 2023 FINANCIAL TAR
Slide 36: 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