Nexity Sa · EURONEXT:NXI
Nexity Sa — Investor Presentation (January 2019)
88 slides from Nexity Sa's investor presentation, January 2019
Slide 1: Investor Presentation January 2019
INVESTOR PRESENTATION JANUARY 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: Nexity at a glance
Nexity at a glance
Slide 4: Who we are: a services company focused on serving our Clients
Who we are: a services company focused on serving our Clients by pursuing a clear strategy So we need to: # Provide solutions to demographic, sociological and environmental challenges Being useful to the # Devise solutions to our Clients’ requirements by “world” in which we harnessing new uses and c
Slide 5: Our services platform
Our services platform Development of new homes and subdivisions Property management for individuals, brokerage, operation of serviced residences Franchise networks Commercial real estate Commercial property management, commercial real estate advisory services and space planning ORGANISATION FOCUSED
Slide 6: Our businesses
Our businesses Leadership positions in all our markets(1) NO. 1 NO. 3 NO. 1 IN RESIDENTIAL REAL IN COMMERCIAL IN COMMERCIAL PROPERTY ESTATE REAL ESTATE MANAGEMENT Market share Market share Market share 14.1% 7.3%(2) 17%(4) NO. 2 NO. 1 NO. 1 IN PROPERTY MANAGEMENT IN BROKERAGE IN SERVICED RESIDENCES
Slide 7: A resilient business in supportive market conditions
A resilient business in supportive market conditions // 2017 key figures // Clear regulatory outlook // Clear operational outlook • Revenue: €3.6bn • 2018 finance bill: Pinel and PTZ interest- • Development backlog of €4.0bn • EBITDA: €461m free loan frameworks extended in supply- • Development “pip
Slide 8: 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 9: Ægide-Domitys takeover
Ægide-Domitys takeover # Partnership initiated in 2007 # An opportunity for Nexity to strengthen its position in the senior market # Increase in Nexity’s stake in the Ægide-Domitys group from • Enlargement of the product range (from poorly fitted out 45% to 63% of share capital. Fully consolidated b
Slide 10: Ægide-Domitys in 2017
Ægide-Domitys in 2017 DEVELOPS AND MARKETS SENIOR INDEPENDENT LIVING MARKETS, LEASES AND OPERATES SENIOR INDEPENDENT FACILITIES LIVING FACILITIES # ~2,600 units marketed in France in 2017, # 72 residences in operation at year-end including around 1,000 units (9 residences) to 2017 institutional inve
Slide 11: Domitys, rapidly growing portfolio of residences
Domitys, rapidly growing portfolio of residences Residences with an average of 120 apartments purpose-built for the elderly Domitys residences (in number) +30% CAGR 72 59 52 41 36 25 15 2011 2012 2013 2014 2015 2016 2017 Key figures: > Pipeline of around 15 new residences per year > A strong service
Slide 12: Individual Clients: Residential Real Estate
Individual Clients: Residential Real Estate Continuation of multi-product and multi-brand growth strategy A unique product offering in the market Nexity market share* +1.6 pt # More than 32 products covering first-time 14.1% homebuyers, social housing and intermediate housing, themed housing and spe
Slide 13: Individual Clients: Residential Real Estate
Individual Clients: Residential Real Estate Positioning Nexity as undisputed market leader in 2017 At national level... … and local level Nexity 14.1% 20.1% (17.0%*) Bouygues Immobilier** 13.6% 17.8% 11.7% (12.7%*) (6.1%*) Others 54.3% 8.6% Altarea Cogedim 7.8% 6.9% 13.0% (8.5%*) Kaufman & Broad (5.
Slide 14: Individual Clients: Real Estate Services to Individuals
Individual Clients: Real Estate Services to Individuals An integrated and unique range of services PROPERTY MANAGEMENT FOR DISTRIBUTION ACTIVITIES INDIVIDUALS - Condominium management - Rental management No. 2 in France BROKERAGE AND FRANCHISES SERVICED RESIDENCES No. 1 in France No. 1 in France Nex
Slide 15: Commercial Clients: Competitive environment and advantages
Commercial Clients: Competitive environment and advantages Market share in the Paris region 2013–2017 Our strengths on the market Bouygues # State-of-the-art skills and expertise offered by our and Linkcity Property teams companies BNPP RE # Timber-frame construction (market leader in France + Asset
Slide 16: 9M 2018 key figures
9M 2018 key figures(1) FINANCIALS 2018 GUIDANCE(2) > Revenue: €2,497m ▪ Revenue and EBITDA: growth by more than 12% +12% vs 9M 2017 ▪ New home reservations in France: continued market growth in Nexity’s €2,434m (+9%) on a like-for-like basis market share in a French market for new homes that should
Slide 17: Real estate development backlog at 30 September 2018
Real estate development backlog* at 30 September 2018 19 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES in €m, excl. VAT, International, Edouard Denis, Primosud et Ægide IFRS 15 standard applied from January 2018 (2017 ha sbeen restated accordingly) +16% 4,632 379 4,008 3,991 3,774 +21% 544 465 3,355 3,
Slide 18: 2018 Guidance unchanged
2018 Guidance unchanged FINANCIAL PERFORMANCE >>>>>>>>>>>>>>>>> # Revenue and EBITDA now expected to grow by more than 12%(1) # Dividend per share increased: at least €2.50 payable in 2019(2) INDIVIDUAL CLIENTS >>>>>>>>>>>>>>>>> # Continued growth in Nexity’s market share, in a market that should de
Slide 19: Our goals for 2018–2021
Our goals for 2018–2021 FINANCIAL PERFORMANCE INDIVIDUAL CLIENTS >>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>> # Compound annual growth # Reservations for new homes in France: continued market share gains for in revenue and EBITDA of Nexity (up 3 percentage points) in a stable market (160,000 reservations 10%
Slide 20: Quantitative CSR targets for 2020–2030
Quantitative CSR targets for 2020–2030 DESIGNING AND CREATING BETTER ACCESS TO HOUSING BETTER BUILDING SUSTAINABLE, RESPONSIBLE CITIES AND HIGHER-QUALITY PRACTICES FOR HIGHER NEIGHBOURHOODS QUALITY OF LIFE AT WORK # REDUCE GREENHOUSE GAS # Continue to lead the market (>20% # Timber-frame offices to
Slide 21: …and cross-disciplinary CSR objectives
…and cross-disciplinary CSR objectives BEING A PREFERRED EMPLOYER GOOD GOVERNANCE PRACTICES • Employees given a stake in the Group’s success ✓ A representative of employee shareholders on the Board of ✓€13m in compulsory and voluntary profit-sharing paid in 2017 Directors ✓Portion of share capital h
Slide 22: Strategic focus on comprehensive real estate services
Strategic focus on comprehensive real estate services PROFITABILITY GROWTH CREATING VALUE FOR SHAREHOLDERS • EBITDA margin ≥ 13% over the • Nexity’s ability to outperform its • Dividend ≥ €2.50 per share period of the plan underlying markets: • Share buybacks • Synergies between the • Underlying gro
Slide 23: Business Activity
Business Activity
Slide 24: Residential Real Estate
Individual Clients Residential Real Estate
Slide 25: Regulatory update – Housing bill (ELAN)
Regulatory update – Housing bill (ELAN) > Senate-passed on 16 October 2018 – Enactment of the Law expected by end-18 ˃ Build « more, better and cheaper » ˃ Reform of the social housing sector • Revitalise urban planning projects: • Requirement for social housing operators with fewer than 12,000 home
Slide 26: Estimate of the total sales volume for new homes in France
Estimate of the total “sales” volume for new homes in France (in thousands of units) 450 Demand for new homes in the medium 384 term: 400-450k units (Nexity estimates) 364 0% +3% pa 170 322 330 vs 2017 +1% pa 312 294 130 130 400 85 127 84 83 100 -2% 140 +1% pa vs 2017 101 117 124 124 -1% pa 107 109
Slide 27: Building permits and housing starts
Building permits and housing starts BUILDING PERMITS HOUSING STARTS (in units, 12 months rolling) (in units, 12 months rolling) -6.4% +1.2% 502,680 414,530 419,500 470,600 Oct. 16 Oct. 17 Oct. 18 Oct-16 Oct-17 Oct-18 > Building permits are down 5.9% over the last 3 months > Housing starts are down 6
Slide 28: Historical evolution of building permits
Historical evolution of building permits (in units, quarterly basis) 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2001 Q1 2008 Q1 2014 Q1 Source : Commissariat Général au Développement Durable (CGDD) Municipal elections Nexity / Investor presentation January 2019 28
Slide 29: New homes sales & supply for sale
New homes sales & supply for sale (number of units) 40.000 35.000 30.000 25.000 Supply for sale 20.000 Q3 2018 -13% vs Q3 2017 15.000 10.000 Q1 Q3 Q3 2003 2017 2018 Sales Supply for sale Source: Commissariat Général au Développement Durable (Base Sit@del2) Nexity / Investor presentation January 2019
Slide 30: New home reservation market in France (developers)
New home reservation market in France (developers) (in units) +8% ~ -8% +22% 165,000 153,300 ~152,000 35,000 121,100 125,700 105,900 108,800 107,800 130,000 ~120,000 2011 2012 2013 2014 2015 2016 2017 2018e Retail sales Bulk sales > ECLN retail sales for 9M 2018: -2% (92,940 units) > FPI sales for 9
Slide 31: Another way of looking at our market share
Another way of looking at our market share 14.1% 165,000 12.5% 12.5% 12.1% 11.9% 35,000 11.5% 11.7% 11.1% 10.3% 9.4% 9.6% 9.3% 9.6% 9.3% 18,351 15,893 130,000 11,424 11,741 10,191 10,121 10,365 2011 2012 2013 2014 2015 2016 2017 2017 market FPI bulk sales Market share previously reported* Market sha
Slide 32: Nexity new home reservations
Nexity new home reservations VALUE VOLUME (in €m incl. VAT, including E.Denis and Primosud from 2017, Ægide (in units, including E.Denis and Primosud from 2017, Ægide from 1 July 2018) from 1 July 2018) -0.4% +4.8% 14,508 14,455 Subdivisions 2,711 2,588 106 1,681 1,251 International 17 12,521 195 29
Slide 33: Nexity reservations: quarterly change
Nexity reservations: quarterly change -1% NEW HOME RESERVATIONS IN FRANCE (in units, including E.Denis and Primosud from 2017, Ægide from 1 July 2018)) +8% +3% 4,821 4,634 4,757 4,288 3,624 3,506 3,618 2,506 2,368 2,099 2,175 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
Slide 34: Nexity key client segments performance
Nexity key client segments performance VOLUME (in units, including E.Denis and Primosud from 2017, Ægide from 1 July 2018) +3% 13,009 12,615 +10% 10,397 Professional landlords 31% 33% (o/w 62% social landlords) 29% -1% Individual investors 45% 43% (o/w 65% Pinel) 45% -25% 6% 4% Other home buyers 6%
Slide 35: Professional landlords
Professional landlords NEXITY’S NEW HOMES BULK SALES (in units, excl. International, incl. E.Denis and Primosud from 2017, Ægide from 1 July 2018) +10% 6,071 4,780 • Framework agreement signed in 2014 with CDC habitat (former 4,140 4,277 SNI) for 800 to 1,000 homes per year 3,765 3,904 73% • New fra
Slide 36: Nexity reservations in France by area
Nexity reservations in France by area VALUE VOLUME (in €m incl. VAT, including E.Denis and Primosud from 2017, Ægide (in units, including E.Denis and Primosud from 2017, Ægide from 1 July 2018) from 1 July 2018) +3% +7% 12,615 13,009 2,588 2,429 10,692 +3% +8% 39% 38% 1,974 Paris region 46% 45% 38%
Slide 37: Nexity new homes: price trends
Nexity new homes: price trends AVERAGE PRICE (in thousand of euros, including E. Denis and Primosud from 2017, excl. PERL, iSelection, Ægide, International and bulk sales) 268 Paris region: +3.5% 257 259 261 265 Paris region excl. Paris: +4.8% 253 257 250 France: +2.7% 222 214 216 218 193 Rest of Fr
Slide 38: Limited impact of rise in interest rates on customers' purchasing power
Limited impact of rise in interest rates on customers’ purchasing power LONGER AVERAGE LOAN TERM FIRST-TIME BUYERS* INDIVIDUAL INVESTOR – PINEL** • Average of 18.5 years at end-Sept. 2018 Monthly €24 €49 €104 Monthly €8 €19 €52 instalment saving effort (in months) €1,064 €169 223 €984 €1,009 €125 €1
Slide 39: Control of production cost of new homes
Control of production cost of new homes* Costs structure Medium-term Nexity’s responses development 100% Borrowing costs 1% 8% # Innovative marketing methods Marketing & Advertising 8% # Digitisation Professional fees & insurance 8% # Operating efficiency Internal fixed costs # New construction proc
Slide 40: Nexity new homes: supply for sale
Nexity new homes: supply for sale CURENT SUPPLY FOR SALE (in units, excl. International and including iSelection and PERL from 2015, E.Denis from 2016, Primosud from 2017 and Ægide from 1 July 2018) -1% 8,561 8,651 8,607 2% 2% 2% 6,988 6,773 23% 6,438 28% 2% 32% 5,058 5,313 52% 4,202 4,293 3,663 3,5
Slide 41: Business potential for new homes
Business potential for new homes 2.8 YEARS OF ACTIVITY (in units, excl. International and including iSelection and PERL from 2015, E.Denis from 2016, Primosud from 2017 and Ægide from 1 July 2018) +11% 52,944 47,560 44,332 41,813 44% 34,453 46% 47% 22,824 23,143 23,941 23,100 24,832 21,285 19,057 28
Slide 42: Bien'ici, 3rd largest real estate portal in the French market
Bien’ici, 3rd largest real estate portal in the French market # # Exceptional use rate and solid performance... ...with traffic that is growing rapidly and still high-quality 5 million monthly visits* X2 vs 45% 59% +8.5 pages viewed per visit Sept. 17 organic mobile traffic traffic 95% of visitors u
Slide 43: Eugénie – service platform for Individual Clients
Eugénie – service platform for Individual Clients • Connected home # HOME • Alarm/remote monitoring • Monitoring of electricity consumption • Emergency works in private areas • System for sharing news from the # CONDOMINIUM managing agent with Eugénie users CONNECTS THE RESIDENT MANAGEMENT • Reporti
Slide 44: Real Estate Services to Individuals
Individual Clients Real Estate Services to Individuals
Slide 45: Real Estate Services to Individuals
Real Estate Services to Individuals PROPERTY MANAGEMENT TO INDIVIDUALS SERVICED RESIDENCES Units under management (in thousands of units) Studéa (student residences): 125 residences , 15,536 units under management at 30 September 2018 2016 2017 9M 2018 91.7% of average occupancy rate at 30 September
Slide 46: Villes & Projets
Local Authority Clients Villes & Projets
Slide 47: Villes & Projets: No. 1 private town planner in France
Villes & Projets: No. 1 private town planner in France Unique know-how for complex projects in densely populated areas in service of local authorities # Planning and developing cities: expertise SAINT-OUEN across the entire value chain for urban (93) projects, together with a comprehensive # CREATIN
Slide 48: An optimised land bank strategy
An optimised land bank strategy Nexity’s model continues to be based on VEFA off- But needs to find an answer to increasing competition in some regions and plan contracts and the use of land purchase options on land prices… …and to strengthen its ability to acquire high-potential land (in Greater #
Slide 49: Commercial Real Estate
Commercial Clients Commercial Real Estate
Slide 50: Commercial real estate market
Commercial real estate market COMMERCIAL REAL ESTATE INVESTMENTS IN FRANCE COMPARISON OF PRIME REAL ESTATE AND GOVERNMENT (in € billion) BOND YIELDS 28 10% 26 24 9% 22 8% 20 Average 2006-2017: €19.6 bn 7% 18 16,7 16 6% 14 5% 12 4.50% 4% 10 8 3% 3.00% 6 2% 4 2 1% 0.67% 0 0% 2006 2007 2008 2009 2010 2
Slide 51: Commercial real estate market
Commercial real estate market OFFICE SPACE IN THE PARIS REGION: IMMEDIATELY AVAILABLE SUPPLY AND VACANCY RATES (in millions of sq.m) 4.5 4.0 7.5 4.0 3.9 7.0 7.2% 3.5 3.4 3.5 6.5 <3.0 3.0 6.0 2.5 5.5 2.0 5.1% 5.0 1.5 4.5 1.0 0.5 4.0 0.0 3.5 2014 2015 2016 2017 9M 2018 Vancancy rate New-build and refu
Slide 52: Le Grand Paris (Greater Paris project)
Le Grand Paris (Greater Paris project) Urban development project Grand Paris Express network** // 200 km of automated lines // 68 new stations // Goal of rebalancing eastern and western areas of the Paris region Already a factor driving up prices in the Paris region // Growth in real estate prices a
Slide 53: Commercial Real Estate: new order intake and backlog
Commercial Real Estate: new order intake and backlog ORDER INTAKE BACKLOG (in €m) (in €m) -18% 544 -2 403 402 400 356 -366 278 465 +278 250 190 379 167 151 111 2013 2014 2015 2016 2017 9M 2018 31 déc. 9M 2018 Order intake Additional 30 sept. 2018 target 2017 revenue works and 2018 other Paris region
Slide 54: Main orders of the period
Main orders of the period # # # NEW – BAS CARBONE NETWORK 1 LES TERRASSES ASNIÈRES-SUR-SEINE (92) BAGNEUX (92) VILLENEUVE D’ASCQ (59) Offices – 14,600 sq.m Offices – 21,000 sq.m Wood-frame offices – 5,900 sq.m Planned delivery: T4 2020 Planned delivery : T1 2020 Nexity / Investor presentation Januar
Slide 55: Business potential for Commercial Real Estate
Business potential* for Commercial Real Estate AT 31 DECEMBER 2017 AT 30 SEPTEMBER 2018 (in €m) (in €m) 4.8 YEARS OF ACTIVITY 3.9 YEARS OF ACTIVITY 769 (31%) 739 +58% €2,452m 811 €1,551m (48%) (52%) 1,683 (69%) Paris region Rest of France > Major operation in La Garenne-Colombes (92) signed on 13 Ju
Slide 56: La Garenne-Colombes (92)
La Garenne-Colombes (92) Nexity / Engie : a financial, strategic and technological development partnership > Acquisition with Engie of a 9-hectares plot of PSA group industrial land in La Garenne-Colombes (92), and a further 2 hectares with RATP group > Conclusion of a technological partnership to d
Slide 57: Financial results
Financial results
Slide 58: New segmentation in 2018
New segmentation in 2018 2017 REVENUE* 2017 EBITDA** (as a % and €m) (as a % and €m) # The Group now uses its client-centred organisation in its financial communications 407 67 (11%) (14%) # Individual Clients • Development 461 3,571 461 • Services: Distribution, Serviced Residences, Property Manage
Slide 59: 9M 2018 consolidated revenue
9M 2018 consolidated revenue +11.9% (in €m) +172 2,497 2,231 +63 3 +30 Other activities 3 413 241 Commercial Clients +71% 1,987 2,080 Individual Clients +5% 9M 2017 Individual Clients Individual Clients Commercial Clients Other activities 9M 2018 restated like-for-like basis Ægide-Domitys > Revenue
Slide 60: H1 2018 consolidated income statement
H1 2018 consolidated income statement H1 2017 in €m H1 2018 restated Revenue 1,556.4 1,412.6 +10% EBITDA 186.2 174.6 +7% % EBITDA / Revenue 12.0% 12.4% Current operating profit 135.8 120.8 +12% % Current operating profit / revenue 8.7% 8.6% Revaluation after acquisition of control of Ægide-Domitys 7
Slide 61: H1 2018 consolidated revenue
H1 2018 consolidated revenue (in €m) +10.2% +82 -1 1,556 Other activities 1,413 +63 2 3 239 Commercial Clients +52% 157 1,253 1,315 Individual Clients +5% H1 2017 Individual Clients Commercial Clients Other activities H1 2018 restated > Revenue up 10% compared to H1 2017, growing for both Individual
Slide 62: H1 2018 EBITDA
H1 2018 EBITDA EBITDA EBITDA MARGIN RATE (in €m and margin rate in %) (in %) 20.4% +6.7% 18.0% 186 (12.0%) 16.9% 175 (12.4%) 15.8% 27 (16.9%) +€11m 38 (15.8%) 12.4% 12.0% 8.8% 9.2% 153 (12.2%) -€1m 151 (11.5%) -5 -3 H1 H1 H1 H1 H1 H1 H1 H1 H1 2017 H1 2018 2017 2018 2017 2018 2017 2018 2017 2018 rest
Slide 63: Reconciliation between H1 2018 EBITDA and current operating profit
Reconciliation between H1 2018 EBITDA and current operating profit (in €m) -€50m 186 -31 -13 +2 136 -6 -3 H1 2018 IFRS 16 Depreciation, Provision charges Share-based Borrowing costs directly H1 2018 EBITDA amortisation amortisation (-) / reversals (+) payments attributable to property current and im
Slide 64: H1 2018 current operating profit
H1 2018 current operating profit CURRENT OPERATING PROFIT CURRENT OPERATING MARGIN (in €m and margin rate in %) (in %) 15.0% 14.8% 12.5% 136 (8.7%) 121 (8.6%) 10.7% 10.7% +€12m 35 (14.8%) 23 (15.0%) 8.6% 8.7% 7.8% 7.7% +€3m 112 (8.5%) 109 (8.7%) -11 -12 H1 H1 H1 H1 H1 H1 H1 H1 H1 2017 H1 2018 2017 2
Slide 65: Balance sheet at 30 June 2018
Balance sheet at 30 June 2018 (in €m) Goodwills 1,474 Equity 1,669 (incl. Non-controlling interests) Other assets 375 131 Provisions Net financial debt 739 before IFRS 16 WCR 971 Total net debt: €1,020m Leases 281 IFRS 16 ASSETS EQUITY AND LIABILITIES Nexity / Investor presentation January 2019 65
Slide 66: H1 2018 change in working capital requirement
H1 2018 change in working capital requirement (in €m) +€154m +21 971 53 Other activities (incl. income tax) 817 +56 +100 -23 78 Commercial Clients 32 49 Real estate services 71 to individuals Individual Clients 791 Residential real estate 735 -21 2017 Individual Clients Individual Clients Commercial
Slide 67: H1 2018 change in net financial debt (before IFRS 16)
H1 2018 change in net financial debt (before IFRS 16) (in €m) -€396m -343 +182 -149 -54 -32 -739 -140 -15 -20 -156 -11 2017 Cash flow from Change in Interest and Future lease Dividend CAPEX Buy back of Financial investments* Others H1 2018 operating activities operating WCR tax payments payments due
Slide 68: Financial debt schedule (before IFRS 16) at 30 June 2018
Financial debt schedule (before IFRS 16) at 30 June 2018 (in €m) 346(3) 401(4) 321(5) Drawn at 210(1) 139 30/06/2018 96(2) 1 2 1 1 2018 2019 2020 2021 2022 2023 2024 2025 ... 2029 2030 Corporate borrowings -1,230 Project-related loans > 48% of debt with maturity > 5 years -288 > Average maturity: 3.
Slide 69: H1 2018 cash flow statement
H1 2018 cash flow statement H1 2017 In €m H1 2018 restated Cash flow from operating activities before financial and tax expenses 182 167 Cash flow from operating activities after financial and tax expenses 121 111 Change in operating WCR (excluding tax) (149) (9) Change in tax-related working capita
Slide 70: Balance sheet and capital management
Balance sheet and capital management # Maintenance of a strong solvency position # Dividend policy • At least €2.50 per share over the entire period of # Target for return on equity (ROE): > 10% over the the plan • Dividend set each year by the Board of Directors entire period taking into account th
Slide 71: Financial structure
Financial structure # Financing > Syndicated corporate credit facility for €2.3 billion during 5 years, comprised of: ‒ €500 million cash credit line ‒ €1.8 billion in guarantee commitments (engagements par signature, notably including performance bonds and bank guarantees) > This contract replaces
Slide 72: Real estate development backlog at 30 September 2018
Real estate development backlog* at 30 September 2018 19 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES in €m, excl. VAT, International, Edouard Denis, Primosud et Ægide IFRS 15 standard applied from January 2018 (2017 has been restated accordingly) +16% 4,632 379 4,008 3,991 3,774 +21% 544 465 3,355 3,
Slide 73: Appendix
Appendix
Slide 74: A resilient business model generating cashflows
A resilient business model generating cashflows EBITDA (in €m) Average 2008-2017: 254 368 265 260 305 217 224 215 232 228 221 Cash flow from operating activities after financial and tax expenses (in €m) Average 2008-2017: 149 239 182 151 122 133 132 128 133 117 149 Free cash flow (in €m) Average 200
Slide 75: Management team
Management team // Executive Committee // Transformation Committee Véronique Bédague Deputy Managing Director, in MANAGEMENT COMMITTEE, MANAGEMENT COMMITTEE, charge of COMMERCIAL AND INDIVIDUAL CLIENTS COMMERCIAL CLIENTS LOCAL AUTHORITY CLIENTS Julien Carmona TRANSFORMATION REGIONAL Deputy CEO in ch
Slide 76: Nexity's ownership structure
Nexity’s ownership structure 30 NOVEMBER 2018 56,129,724 shares(1) 5.3% Crédit Mutuel Arkéa 5.3% 12.2% 3.4% A. Dinin, New Port (2) and other Nexity managers 6.4% belonging to the concert group 12.2% 15.7% FCPE and other employees (3) 3.4% Crédit Agricole Assurances 6.4% 71.7% Free float 71.7% (1) o/
Slide 77: Housing that needs to adapt to demand
Housing that needs to adapt to demand Ever larger number of households 2010-2014 trends (in millions of households) (as % and number at year-end 2014) +7% CAGR +0.75% SINGLE PEOPLE CAGR +1.01% 34 9,847,917 28 30 32 27 Account for 88% 22 +1% COUPLES WITHOUT CHILDREN 7,486,338 of growth over the perio
Slide 78: Structural need for housing
Structural need for housing Estimated number of homes required per year by 2040 (in thousands of units) 350 465 450 # DEMAND FOR AT LEAST 400,000 NEW HOMES PER YEAR BY 2040, VS AN AVERAGE OF 326,000 HOMES BUILT BETWEEN 2014 AND 2018 Plugging the construction 326 shortfall 400 295 Regional population
Slide 79: New reporting standard: IFRS 15 Revenue from contracts with customers
New reporting standard: IFRS 15 Revenue from contracts with customers # Percentage-of-completion principle maintained for real estate development activities in France, but percentage of completion must be calculated based on all inventoriable costs (including land) # FASTER RECOGNITION OF REVENUE AN
Slide 80: 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 81: Seasonality of business, impact on revenue (2017 baseline)
Seasonality of business, impact on revenue (2017 baseline) NEW HOMES IN FRANCE Trigger for the start of revenue recognition RESERVATIONS START-UP OF WORK INITIAL NOTARISED (as a % of total annual reservations) (prior to IFRS 15) AGREEMENTS/TRANSACTIONS (with IFRS 15) 60% 40% 26% 31% 25% 19% 23% 20%
Slide 82: Simulated IFRS 15 impact – commercial development
Simulated IFRS 15 impact – commercial development # Pattern of revenue recognition for a typical commercial development in the inner suburbs of Paris (land: 30% of cost) Delivery 100.0% Off-plan sale agreed 61.1% 42.9% 37.5% Revenue recognition pre-IFRS 15 Revenue recognition post-IFRS 15 5.0% M0 M3
Slide 83: New standard: IFRS 16 Leases
New standard: IFRS 16 Leases Figures at 31 December 2017 # Scope: Leases of buildings used for business operations, IT equipment, future lease payments for serviced residences # Current standard: information provided off balance sheet in the notes to the financial statements # New standard: the amou
Slide 84: Income statement of cruising speed serviced residence
Income statement of “cruising speed” serviced residence including average debt under IFRS 16 BUSINESS CASE STUDENT RESIDENCES SENIOR RESIDENCES (in euros) (% of revenue) (% of revenue) Term of operating leases 10 years 12 years Number of units in the residence 110 120 Average monthly rent excl. VAT
Slide 85: Acquisitions policy focusing on value creation
Acquisitions policy focusing on value creation # Individual Clients – Residential Real Estate // Acquisitions over the period 2014–2017 • Edouard Denis and Primosud in 2016 Total EV: €553m # Individual Clients – Real Estate Services to Individuals • PERL and Oralia in 2014 2017 EBITDA from acquisiti
Slide 86: Community housing – Nexity non-profit
Community housing – Nexity “non-profit” NEW HOMES VACANT HOUSING // Family shelters • Agreement signed on 11 July 2018 with ANAH • ~20 homes, mainly studios (French national housing agency) and DIHAL • Managed by specialised associations (Fondation Abbé Pierre, Habitat & Humanisme, and other chariti
Slide 87: Nexity Foundation
Nexity Foundation Every day, through its wide range of activities, Nexity 3 strategic priorities: shapes towns and cities by: • Building a large-scale partnership with major socially engaged • Taking an active role in urban life housing associations to promote decent, affordable housing • Building m
Slide 88: 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