Nexity Sa · EURONEXT:NXI
Nexity Sa — Q1 2019 Earnings Presentation
26 slides from Nexity Sa's earnings presentation, Apr 25, 2019
Slide 1: Q1 2019 Business Activity and Revenue Webcast
Q1 2019 BUSINESS ACTIVITY AND REVENUE WEBCAST 25 APRIL 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: Q1 2019 Key figures
Q1 2019 Key figures (1) INDIVIDUAL CLIENTS COMMERCIAL CLIENTS ▪ Revenue: €762m +26% vs Q1 2018 ▪ Revenue: €119m +40% vs Q1 2018 €671m (+11%) on a like-for-like basis €111m (+31%) on a like-for-like basis ▪ New home reservations in +7.3% +8.1% ▪ Order intake: €9m France : in volume in value 2019 guid
Slide 4: Building permits and housing starts
INDIVIDUAL CLIENTS Residential Real Estate Building permits and housing starts BUILDING PERMITS HOUSING STARTS (in units, 12 months rolling) (in units, 12 months rolling) -9.0% -5.0% 492,900 435,300 413,600 448,500 Feb. 16 Feb. 17 Feb. 18 Feb. 19 Feb. 16 Feb. 17 Feb. 18 Feb. 19 ▪ Building permits do
Slide 5: Change in new home reservations in France
INDIVIDUAL CLIENTS Residential Real Estate Change in new home reservations in France (in units) +10% -7% ~ -8% 168,600 Low mortgage rates: 1.39% in March 2019 153,900 157,600 ~145,000 Demographics 125,600 121,100 Stability of tax incentives 105,900 108,600 107,500 Increase in construction costs and
Slide 6: Nexity new home reservations
INDIVIDUAL CLIENTS Residential Real Estate Nexity new home reservations VOLUME VALUE (in units, including Ægide from 1 July 2018) (in €m incl. VAT, including Ægide from 1 July 2018) +4.5% +6.7% 4,177 Subdivisions 797 4,022 3,997 747 20 258 International 3 479 339 36 +7.3% 699 4 28 +8.1% 3,437 37 40
Slide 7: Nexity key client segments performance
INDIVIDUAL CLIENTS Residential Real Estate Nexity key client segments performance VOLUME (in units, including Ægide from 1 July 2018) +7% 3,883 3,506 3,618 Social landlords -21% 14% Bulk sales: -15% 19% Institutional 23% -3% 9% Investors (lfl -15%) 4% 10% +24% Individual 51% 46% 43% Investors Retail
Slide 8: Nexity reservations in France by area – Q1 2019
INDIVIDUAL CLIENTS Residential Real Estate Nexity reservations in France by area – Q1 2019 VOLUME VALUE (in units, including Ægide from 1 July 2018) (in €m incl. VAT, including Ægide from 1 July 2018)) +7% +8% 3,883 773 3,506 3,618 715 -32% 655 29% -22% 37% 39% Paris region 55% 45% 51% +39% 71% 61%
Slide 9: Strong presence in the Grand Paris
INDIVIDUAL CLIENTS Residential Real Estate Strong presence in the Grand Paris* NEXITY’S MARKET SHARE** NEXITY MARKET SHARE BY PRODUCT TYPE*** (including bulk sales) Bulk sales Serviced residences Reduced VAT zones 48,633 47,441 15.4% 15% 42,217 21% 24% 14.7% 13.5% RETAIL SALES AFFORDABLE HOUSING Nex
Slide 10: Nexity new homes: price trends
INDIVIDUAL CLIENTS Residential Real Estate Nexity new homes: price trends AVERAGE PRICE (in thousand of euros, excl. PERL, iSelection, Ægide, International and bulk sales) 273 267 257 257 261 Paris region: -5.8% 267 265 Paris region excl. Paris: -4.1% 257 256 250 227 224 226 France: -0.3% 214 218 20
Slide 11: Nexity new homes: supply for sale
INDIVIDUAL CLIENTS Residential Real Estate Nexity new homes: supply for sale CURENT SUPPLY FOR SALE (in units, excl. International and including Ægide from 1 July 2018) -9% 9,005 8,651 8,135 2% 8,151 2% 2% 6,988 6,773 31% 2% 6,438 27% 35% ▪ Take-up period* of 4.9 months 5,313 in Q1 2019 (compared to
Slide 12: Business potential for new homes
INDIVIDUAL CLIENTS Residential Real Estate Business potential for new homes (in units, excl. International and including Ægide from 1 July 2018) 2.7 YEARS OF ACTIVITY +1% 53,602 54,299 47,560 49,581 41,813 43% 43% 42% 34,453 22,824 23,143 23,941 23,100 24,832 21,285 19,057 28% 57% 53% 57% 72% 2008 2
Slide 13: Property management for individuals and Distribution
INDIVIDUAL CLIENTS Real Estate Services to Individuals Property management for individuals and Distribution PMI – Units under management FRANCHISES - Change in number of agencies (in thousands of units) +1% 1,292 1,361 1,371 2016 2017 2018 Q1 2019 1,217 Condominium 830 867 871 726 721 721 721 793 ma
Slide 14: Serviced residences
INDIVIDUAL CLIENTS Real Estate Services to Individuals Serviced residences STUDENT RESIDENCES SENIOR RESIDENCES 89 residences 10,440 housing units 122 residences 15,220 housing units at end-March 2019 at end-March 2019 at end-March 2019 at end-March 2019 6 new residences in Q1 2019 (640 units) in Mo
Slide 15: Commercial real estate market
COMMERCIAL CLIENTS Commercial Real Estate Commercial real estate market COMMERCIAL REAL ESTATE INVESTMENTS IN FRANCE COMPARISON OF PRIME REAL ESTATE AND GOVERNMENT (in € billion) BOND YIELDS 10% 35 9% 30 8% 7% 25 2006-2018 average: €20.4bn 6% 20 5% 4.40% 4% 15 3% 3.00% 10 2% -13% 5 3.8 1% 0.25% 0% 0
Slide 16: New order intake and backlog
COMMERCIAL CLIENTS Commercial Real Estate New order intake and backlog ORDER INTAKE BACKLOG (in €m) (in €m) 544 +9 -98 403 402 +3 Average: 374 356 349 349 250 308 166 190 222 151 183 9 2013 2014 2015 2016 2017 2018 Q1 Objectif 31 Dec. Q1 2019 Q1 2019 Additional 31 Mar. 2019 2019 2018 order intake re
Slide 17: Business potential for Commercial Real Estate
COMMERCIAL CLIENTS Commercial Real Estate Business potential* for Commercial Real Estate AT 31 DECEMBER 2018 AT 31 MARCH 2019 (in €m) (in €m) 5.5 YEARS OF ACTIVITY 5.5 YEARS OF ACTIVITY 775 824 (28%) (29%) +2% €2,796m €2,845m 2,021 2,021 (72%) (71%) Paris region Rest of France The set-up phase of th
Slide 18: Real Estate Services to Companies
COMMERCIAL CLIENTS Real Estate Services to Companies Real Estate Services to Companies PROPERTY MANAGEMENT (in millions of sq.m under management) +1.9% STRONG REVENUE GROWTH (in €m) 18.6 19.0 12.3 10.6 10.1 x3.4 17 11.3 8.0 8.0 11 1.0 1.0 5 5 2017 2018 Q1 2019 Rental management Technical management
Slide 19: « Inventer Bruneseau » - « Nouvel R » Project
« Inventer Bruneseau » - « Nouvel R » Project Won the call for projects to develop near 100,000 sq.m between Paris and Ivry-sur-Seine. An ambitious project that will make of Bruneseau the first carbon-free district in France Key figures: ▪ 95,000 sq.m: 25,000 sq.m of offices / 50,000 sq.m of housing
Slide 20: Q1 2019 Revenue
Q1 2019 Revenue* (in €m) +27.9% +34 881 Other activities +91 Commercial Clients ▪ Revenue: +28% compared to +68 119 688 Q1 2018 (+14% on a like-for- +40% €111m (+31% lfl) 1 like basis) 85 ▪ Ægide-Domitys : €91m in Q1 Individual Clients 2019 (€42m for development 762 activities and €49m for the 603 +
Slide 21: Nexity's Backlog at 31 March 2019
Nexity’s Backlog* at 31 March 2019 16 MONTHS REVENUE FROM DEVELOPMENT In €m, excl. VAT, including Ægide from 2018 ACTIVITIES IFRS 15 standard applied from January 2018 (2017 has been restated accordingly) = 4,469 4,491 4,008 3,991 308 222 544 465 3,355 3,283 3,293 3,085 486 449 487 383 4,161 4,269 3
Slide 22: 2019 guidance
2019 guidance FINANCIAL INDIVIDUAL COMMERCIAL LOCAL AUTHORITY PERFORMANCE CLIENTS CLIENTS CLIENTS ▪ Revenue and EBITDA ▪ New homes in France: ▪ Commercial Real Estate order ▪ Initiation of the largest expected to grow by at Continued growth in Nexity’s intake: at least equal to 2018 private project
Slide 23: Our goals for 2018–2021
Our goals for 2018–2021 FINANCIAL PERFORMANCE INDIVIDUAL CLIENTS ▪ Compound annual growth in revenue and EBITDA of 10% ▪ Reservations for new homes in France: continued market share gains for Nexity (up 3 percentage points) in a stable market (160,000 +10% CAGR reservations expected in 2021 (2)) REV
Slide 24: Nexity's ownership structure
Nexity’s ownership structure 31 MARCH 2019 56,129,724 shares(1) 5.3% Crédit Mutuel Arkéa 5.3% 14.2% Concert 3.2% A. Dinin, New Port (2) and other Nexity managers group belonging to the concert group 14.2% 19.5% 6.4% FCPE and other employees (3) 3.2% Crédit Agricole Assurances 6.4% 69.6% Free float 6
Slide 25: Change in governance – 22 May 2019 (Shareholders' Meeting)
Change in governance – 22 May 2019 (Shareholders’ Meeting) Alain Dinin, Nexity’s Chairman and CEO, has proposed to separate the roles of Chairman and CEO: • As Chairman of the Board of Directors, Alain Dinin would work with the Board to determine the Group’s strategy and oversee the implementation a
Slide 26: 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