Slide 1: Nexity Investor Presentation May 2017
NEXITY INVESTOR PRESENTATION MAY 2017
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: Contents
CONTENTS 1. NEXITY AT A GLANCE 2. Q1 2017 MARKETS AND BUSINESS ACTIVITY 2.1 RESIDENTIAL REAL ESTATE 2.2 COMMERCIAL REAL ESTATE 2.3 SERVICES 2.4 LARGE PROJECTS 3. FINANCIALS 4. OUTLOOK 5. APPENDIX NEXITY / Investor Presentation - May 2017 PAGE 3
Slide 4: Nexity at a Glance
1. NEXITY AT A GLANCE
Slide 5: Q1 2017 Summary
Q1 2017 SUMMARY 3,506 new home reservations in France +19% in volume and +22% in value compared to Q1 2016 NEXITY’S NEW HOME RESERVATIONS At constant perimeter, +5% in volume and +8% in value, 410 reservations from 2016 external growth COMMERCIAL REAL ESTATE No significant order intake at end of Mar
Slide 6: Nexity Key Figures
NEXITY KEY FIGURES* RESIDENTIAL REAL ESTATE NEW HOME RESERVATIONS (in volume) 18,890 +50% 12,562 14,235 vs 2014 2014 2015 2016 BACKLOG GROUP’S REVENUE (€m) (€m) +17% 4,008 +22% vs 2014 vs 2014 3,283 3,293 3,057 3,073 2,632 CURRENT OPERATING 2014 2015 2016 PROFIT (€m) AND MARGIN 2014 2015 2016 8.7% 7
Slide 7: Nexity's Evolving Business Model
NEXITY’S EVOLVING BUSINESS MODEL One-product company Property developer Single brand: (pure property developer) + Service provider Integrated real estate operator 3G 4G 2004 2007 2012 Becoming a truly comprehensive real estate services provider (“Real Estate Services Platform”) Customer-centric orga
Slide 8: A New Management Team to Implement This Strategy
A NEW MANAGEMENT TEAM TO IMPLEMENT THIS STRATEGY Alain Dinin Chairman and CEO COMMERCIAL CLIENTS INDIVIDUAL CLIENTS INTERNAL CLIENTS LOCAL AUTHORITY CLIENTS Jean-Philippe Frédéric Bruno Corinti Julien Carmona Ruggieri Verdavaine Deputy Chief Executive Officer Deputy Chief Executive Officer Deputy Ch
Slide 9: A Unique Business Model, Nexity Is…
A UNIQUE BUSINESS MODEL, NEXITY IS… > Present across all real estate business lines, > A highly flexible operational model, with low apart from the holding of property assets (except in fixed costs the context of development or co-investment operations) and considerable use of subcontracting • An “a
Slide 10: Be Useful: A Sustainable Real Estate Strategy
BE USEFUL: A SUSTAINABLE REAL ESTATE STRATEGY AFFORDABLE AND EFFICIENT HOUSING > Facilitate access to housing: home ownership, social rented housing, housing for every stage of life > Offer efficient housing: energy-efficient and healthy buildings and upgraded condominiums > Share innovative mobilit
Slide 11: A Unique Service Offering to Individual Clients
NEXITY: AN UNIQUE SERVICE OFFERING TO THE INDIVIDUAL CLIENTS Buy Acheter Invest Condominium Espaces communs Property management Management Louer Rent Transaction Serviced residences Franchises network NEXITY / Investor Presentation - May 2017 PAGE 11
Slide 12: Before, Life Was Like This…
BEFORE, LIFE WAS LIKE THIS… Yesterday Family size Builds a family Lives with his parents Kids leave Get married home Becomes widow Age NEXITY / Investor Presentation - May 2017 PAGE 12
Slide 13: Today, It's More Like That…
TODAY, IT’S MORE LIKE THAT… Yesterday Family Second marriage Today size Extended family Has children Lives Get with Lives Erasmus Get divorced a partner with married his Young Student worker Home parents buyer Life with a 3rd Tenant Kids partner leave Senior home residences, Partner life lease… deat
Slide 14: Services' Digital Transformation Has Started
SERVICES’ DIGITAL TRANSFORMATION HAS STARTED… 2017 2018 SUPPLIERS SECURED SUPPLIER’S ZONE APP 2017 EPC LOCAT’IN DIGITAL E-INVITATION & WIFI MINUTES OF MEETING E-TENANT AGENCIES 2017 CLIENTS FILE 2017 EMPLOYEES EPC VISIO MOBILE SKYPE APP E-GERANCE MOBILITY 2017 CHATBOT E-SIP LOGGY 2018 SELECTDIAG MAN
Slide 15: Innovation and Digital Transformation
INNOVATION AND DIGITAL TRANSFORMATION Design simulator Blue Office A 3D home visualisation and Pioneering networks of shared offices in France interior design simulator to help all Nexity clients streamline 7 Blue Offices opened their home purchasing (855 work spaces) decisions Rolled out in 2015 Bi
Slide 16: Financial Model for Residential Development
FINANCIAL MODEL FOR RESIDENTIAL DEVELOPMENT Project Purchase Pre-sales Purchase Start Sales phase, phases option phase: option of transfers of ownership, Delivery on land 6–12 months exercise works construction: 18–24 months 100% 100% 60% 40% M0 M6-12 M24-36 Payment 5% upon reservation 3
Slide 17: 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 34 35 28 17 19 14 15 15 9 10 6 7 10 4 0 0 5 5 0 0 -2 -5 -9
Slide 18: Nexity Residential Market Shares (Pre-Sales)
NEXITY RESIDENTIAL MARKET SHARES (PRE- SALES) NEXITY MARKET SHARE AT 31 EVOLUTION OF NEXITY’S MARKET SHARE DECEMBER 2016 11.5% 11.3% 11.9% 11.3% 12.7% 10.2% 10.3% 10.9% 8.4% 8.6% 9.2% 7.4% 17.3% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 16.6% 16.1% MARKET SHARES OF THE LEADING PLAY
Slide 19: Nexity: The Leading French Real Estate Developer
NEXITY : THE LEADING FRENCH REAL ESTATE DEVELOPER COMMERCIAL ACTIVITY RESIDENTIAL NEW HOMES ORDER INTAKE (in €m, incl. VAT) RESERVATIONS (in units) (residential + commercial) 3,645 18,890 3,292 2,884 13,866 1,814 10,011 8,017 1,115 5,665 Nexity Bouygues Altaréa Kaufman Icade** Nexity Bouygues Altaré
Slide 20: 2016 Targets Exceeded
2016 TARGETS* EXCEEDED 2016 Guidance** > +15% to GROWTH IN NEW HOME RESERVATIONS +35% +29% +20% IN FRANCE by volume by value by volume COMMERCIAL REAL ESTATE ORDER INTAKE €356m > €250m Stable, around CONSOLIDATED REVENUE +1% €3.1bn €3bn > €235m, €266m revised at CURRENT OPERATING PROFIT +21% > €245m
Slide 21: Nexity's Ownership Structure
NEXITY’S OWNERSHIP STRUCTURE 31 MARCH 2017 55,305,044 shares* Crédit Mutuel Arkéa A.Dinin, New Port** and other Nexity managers in the concert group 5.4% 13.3% FCPE and other employees 2.5% 18.7% 6.0% 54.180.987 actions* Predica 72.6% Free float * o/w 79,297 treasury shares (0.1%) ** New Port 6.8% N
Slide 22: Markets and Business Activity Q1 2017
2. MARKETS AND BUSINESS ACTIVITY Q1 2017
Slide 23: Residential Real Estate
2.1 RESIDENTIAL REAL ESTATE
Slide 24: Market Drivers
MARKET DRIVERS MORTGAGE RATES MONTHLY CONSUMER CONFIDENCE SURVEY – (all markets, excl. insurance, last month SYNTHETIC INDEX of the quarter, average) (data corrected for seasonal variations) 108 5.07% 100 95 94 92 94 2.20% Average: 90 1.34% 1.51% 0.99% 0.83% 82 80 0.18% Q1 2016 Q2 2016 Q3 2016 Q4 20
Slide 25: Sensitivity to Mortgage Rates Growth
SENSITIVITY TO MORTGAGE RATES GROWTH FIRST-TIME BUYERS BUY-TO-LET INVESTOR “PINEL” SCHEME > Herblay (95), 64.7 sq.m., €245,000 incl VAT > Montreuil (93), 41.3 sq.m., €215,000 incl VAT > 2 people household + 1 child, €3,200 monthly > +50 years old, first-time investor, € 6,700 monthly income income >
Slide 26: Tax and Regulatory Environment
TAX AND REGULATORY ENVIRONMENT 01/01/2014 01/01/2015 01/01/2016 INTERMEDIATE HOUSING BUY-TO-LET INVESTMENT INCREASED SUPPORT FOR HOME BUYERS Status created for institutional Switch from « Duflot » to « Pinel » scheme - New PTZ since January 1, 2016 investors (portion of the property price > More fle
Slide 27: French Residential Market: Building Permits & Housing Starts
FRENCH RESIDENTIAL MARKET: BUILDING PERMITS & HOUSING STARTS BUILDING PERMITS HOUSING STARTS (in number of units, 12 months rolling) (in number of units, 12 months rolling) +14.5% +15.5% 465,100 393,400 406,200 340,600 Mars-15 Mars-16 Mars-17 Mars-15 Mars-16 Mars-17 Source : Commissariat Général au
Slide 28: New Home Reservation Market in France (Developers)
NEW HOME RESERVATION MARKET IN FRANCE (DEVELOPERS) DEVELOPERS’ NEW HOME RESERVATIONS (in units) +21% ≈ 126,000 127,000 125,100 115,300 105,800 105,000 103,700 Average 2006-2016 : 104,700 88,900 89,300 87,000 78,500 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e Sources : Commissariat G
Slide 29: Long Term View on New Home Reservations: Market vs Nexity
A LONG TERM VIEW ON NEW HOME RESERVATIONS IN FRANCE: MARKET* VS NEXITY VOLUMES (in units) -1% +46% 127,000 125,100 15,893 10,919 10,174 92,000 (64%) 106,100 -13% (74%) +31% (84%) 7,743 (71%) 5,719 33,100 3,176 +80% 20,900 +58% (36%) (26%) (29%) (16%) 2007 2016 2007 2016 Market Market Nexity Nexity P
Slide 30: Nexity New Homes Reservations
NEXITY NEW HOMES RESERVATIONS VOLUME VALUE (in units) (in €m, incl. VAT) +17.0% 20.2% 4,022 699 Subdivision 9 35 3,437 479 37 581 International 417 13 32 73 2,522 440 321 2 23 14 655 3.506 +22.1% 10,365 536 2,947 +19.0% New homes 2,187 o/w 2016 external 415 growth 413 75 Q1 2015 Q1 2016 Q1 2017 Q1 2
Slide 31: Nexity New Home Reservations in France: Quarterly Change
NEXITY NEW HOME RESERVATIONS IN FRANCE: QUARTERLY CHANGE NEW HOME RESERVATIONS (in units) – at constant perimeter * +5% 4,654 +35% 4,121 3,329 2,947 3,093 2,187 1,857 1,815 1,660 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2015 2016 2017 * +19% in Q1 2017 including
Slide 32: Reservations in France: Breakdown by Client Type
NEXITY NEW HOME RESERVATIONS IN FRANCE: BREAKDOWN BY CLIENT TYPE VOLUME (excluding Edouard Denis and Primosud, in units) +5% 3.093 3,093 2.947 2,947 +6% 26% Professional 25% Landlords 2.187 2,187 26% +9% 46% Individual 45% Investors 47% Other home 8% -11% 7% buyers -2% 6% First-time vs Q1 2016 22% 2
Slide 33: Focus on Growth Products: Serviced Residences and Reduced VAT Zones
FOCUS ON 2 GROWTH PRODUCTS: SERVICED RESIDENCES AND REDUCED VAT ZONES REDUCED VAT ZONES AT 5.5% SERVICED RESIDENCES (excl. bulk sales) NEXITY’S RESERVATIONS NEXITY’S RESERVATIONS +17% +15% 3,606 2,080 2,283 1,349 708* 441 506 605 2015 Q1 2016 2016 Q1 2017 2015 Q1 2016 2016 Q1 2017 * Of which 214 uni
Slide 34: Nexity Reservations in France by Area
NEXITY RESERVATIONS IN FRANCE BY AREA VOLUME VALUE (in units) (in €m, incl. VAT) +19% +22% 3,506 655 2,947 536 +24% +29% 39% 45% 36% Paris region 415 2,187 44% 35% 42% +13% 61% +20% 64% 55% 65% 56% Rest of France 58% Q1 2015 Q1 2016 Q1 2017 Q1 2015 Q1 2016 Q1 2017 ˃ Private clients reservations in Q
Slide 35: Nexity New Homes: Price Trends
NEXITY NEW HOMES: PRICE TRENDS NEW HOMES NEXITY CLIENTS (in thousand of euros, excl. Iselection, PERL, International, and bulk sales) 265 257 255 249 Paris region: +2.5% 251 244 250 248 Paris region excl. Paris: +1.6% 183 184 189 Rest of France: +6.3% 178 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2
Slide 36: Nexity New Homes: Supply for Sale
NEXITY NEW HOMES: SUPPLY FOR SALE NEXITY NEW HOMES SUPPLY (in units, excl. International and incl. Iselection and PERL from 2015, Edouard Denis from 2016 and Primosud from 2017) +1% 6,988 6,773* 6,650* 2% 6,438 1%6,564 E.Denis et Primosud 5,313 2% 2% Completed new homes 5,058 39% 52% New homes 30% u
Slide 37: Business Potential for New Homes
NEXITY: BUSINESS POTENTIAL* FOR NEW HOMES (in units, excl. International and incl. Iselection, PERL and Villes & Projets from 2015, Edouard Denis from 2016 and Primosud from 2017) 2.6 YEARS OF ACTIVITY +18% 41,813** 42,474** E.Denis et Primosud 36,051 34,453 47% 49% Paris region 24,832 49% 22,824 23
Slide 38: Commercial Real Estate
2.2 COMMERCIAL REAL ESTATE
Slide 39: Commercial Real Estate Markets
COMMERCIAL REAL ESTATE MARKETS TAKE-UP IN PARIS REGION (in millions of sq.m.) 2.8 2.4 1.9 0.7 0.6 0.6 +27% 0.5 0.7 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017 FRENCH COMMERCIAL REAL ESTATE INVESTMENTS (in billions of euros) 27 Offices off-plan sales : 24 €0.8 billion in Q1 2017 In
Slide 40: Commercial Real Estate New Order Intake and Backlog
COMMERCIAL REAL ESTATE NEW ORDER INTAKE AND BACKLOG ORDER INTAKE BACKLOG (in €m) (in €m) 544 403 -15% 356 350 -86 +1 +2 Average 2012-2016 : 320 176 190 544 461 ns 2012 2013 2014 2015 2016 Q1 2017 31 Dec. Q1 2017 Q1 2017 Additional 31 Mar. 2016 revenue order works and 2017 2017 Target intake other ad
Slide 41: Saint-Ouen (93) Influence 1 & 2.0
SAINT-OUEN (93) INFLUENCE 1 & 2.0 The Île-de-France region signed 2 off-plan leases for the Influence 1 and 2.0 buildings in the eco-district of Saint-Ouen (Seine-Saint-Denis): > New district between the City Hall and the Seine > 100 metres from metro line 13 (Mairie de Saint-Ouen) and from new line
Slide 42: Nexity, Leader in Wood-Frame Office Buildings
NEXITY, LEADER IN WOOD-FRAME OFFICE BUILDINGS > With Ywood and Térénéo (acquired in 2014), Nexity is the first provider of wood-frame office buildings in France > Almost 40,000 sq.m of wood offices delivered since 2011 > Quick and easy set-up thanks to a pre-fabricated construction process (3x faste
Slide 43: Services
2.3 SERVICES
Slide 44: Existing Home Sales
EXISTING HOME SALES NUMBER OF TRANSACTIONS FOR EXISTING HOMES (in thousand of units – 12 months rolling) 848 821 803 Average 2006 – 2016 : 750 694 594 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sources : CGDD based on data from DGFiP and notarial databases from 2006 to 2016 NEXITY / Inve
Slide 45: Services to Individuals Key Figures
SERVICES TO INDIVIDUALS KEY FIGURES REAL ESTATE SERVICES TO INDIVIDUALS (PMI) OTHER REAL ESTATE SERVICES TO INDIVIDUALS Units under management (in thousands) Studéa (student housing excl. Edenea and Switzerland) -0.1%* 130 129 120 120 94.3% 915 898 897 92.3% Condominium management 735 726 726 2015 Q
Slide 46: Services to Companies Key Figures
SERVICES TO COMPANIES KEY FIGURES REAL ESTATE SERVICES TO COMPANIES MAIN INNOVATIONS FOR COMMERCIAL (NPM) CLIENTS (in millions of sq.m under management) > Nexity Lab opening, in-house demonstrator -3.9% located rue de Vienne (75) > Opening of Blue Office Paris Saint-Lazare (75) 12.2 12.3 > Developme
Slide 47: Large Projects
2.4 LARGE PROJECTS
Slide 48: Nexity Involved in Grand Paris Projects…
NEXITY INVOLVED IN GRAND PARIS PROJECTS… Villes & Projets VILLANOVA – ROMAINVILLE (93) 260 units MEUDON – Pointe de Trivaux (92) SAINT-OUEN (93) Planned deliveries as of Q3 2017 510 units – Retail spaces 146.100 sq.m to be developed Villes & Delivery planned for 2020 And Regional council premises Pr
Slide 49: … and in Large Regional Cities
… AND IN LARGE REGIONAL CITIES LOMME (59) LOMMEconsultation Large housing (59) 550 units – Serviced Residences Deliveries planned from 2020 VILLARBOREA - LYON (69) – LYON (69) VILL’ARBORÉA Villes & 2017 ENTRY 416 units Projets Delivery planned for Q3 2019 Villes Villes & & Projets Projets VILLENAVE-
Slide 50: Financial Results
3. FINANCIAL RESULTS
Slide 51: Q1 2017 Consolidated Revenue
Q1 2017 CONSOLIDATED REVENUE* (in €m) +5.5% +18 656 622 +15 1 Other activities 1 121 Services 121 86 Commercial +27% 68 433 448 Residential +3% Q1 2016 Residential Commercial Services Other Q1 2017 activities > Revenue up +5% compared to Q1 2016, with growth in all business activities > Order intake
Slide 52: 2016 Consolidated Revenue
2016 CONSOLIDATED REVENUE* (in €m) +0.5% 3,057 +106 -72 -10 -8 3,073 Other activities 13 4 504 494 Services -1.9% 379 307 Commercial -19.1% 2,162 2,267 Residential +4.9% 2015 Residential Commercial Services Other 2016 activities > Revenue remaining stable compared to 2015, with growth in Residential
Slide 53: 2016 Current Operating Profit
2016 CURRENT OPERATING PROFIT* CURRENT OPERATING PROFIT OPERATING PROFIT MARGIN (in €m) (in %) +21% 18.6% 266 220 45 Services 35 57 Commercial 39 10.3% 8.6% 9.0% 9.1% 8.7% 7.0% 7.2% 186 203 Residential -41 -39 Other activities 2015 2016 2015 2016 2015 2016 2015 2016 Residential Commercial Services G
Slide 54: Change in Residential Operating Margin
CHANGE IN RESIDENTIAL OPERATING MARGIN* CURRENT OPERATING MARGIN (in %) Average 2008-2016 : 8.9% 15.6% 9.0% 9.8% 10.0% 9.6% 9.1% 8.6% 8.2% 7.9% 7.8% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor Presentation -
Slide 55: Increase in Profitability: Property Management for Individuals
INCREASE IN PROFITABILITY* PROPERTY MANAGEMENT FOR INDIVIDUALS (PMI) OPERATING PROFIT MARGIN AND SHARE OF FINANCIAL INCOME (in %) 10.4% 8.5% 7.6% 7.1% 6.1% 5.9% 5.7% 5.0% 4.1% 76% 12% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Operating profit margin Share of financial income in current operating
Slide 56: 2016 Consolidated Income Statement
2016 CONSOLIDATED INCOME STATEMENT* in €m 2016 2015 Revenue 3,072.7 3,057.1 +1% EBITDA 304.7 259.8 +17% % EBITDA / Revenue 9.9% 8.5% Current operating profit 266.5 220.1 +21% % Current operating profit / revenue 8.7% 7.2% Net financial income (expenses) (28.0) (20.3) Taxes (89.0) (73.7) Share of pro
Slide 57: Balance Sheet at 31 December 2016
BALANCE SHEET* AT 31 DECEMBER 2016 (en €m) Goodwills 1.214 1.594 Equity (incl. non-controlling interests) Other assets 135 WCR 692 130 Provisions 317 Net debt ASSETS EQUITY AND LIABILITIES * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor Presentation - May 2017
Slide 58: 2016 Working Capital Requirement
2016 WORKING CAPITAL REQUIREMENT* (in €m) + €159m +170 +7 +1 -19 692 Incl. external 533 growth: +134 18 759 Residential 589 Other activities -1 (incl. income tax) -64 -63 Services -3 -10 Commercial 2015 Residential Commercial Services Other 2016 activities incl. income tax Pre-sale rate of off-plan
Slide 59: 2016 Change in Net Cash/Debt Position
2016 CHANGE IN NET CASH/DEBT POSITION* (in €m) -€214m -28 -69 +289 -120 -102 -23 -214 -317 -31 -18 2015 Cash flow Changes in Interest and Dividend CAPEX External OCEANE Other** 2016 from operating tax payments growth net impact operations WCR (shareholders’equity) before WCR, interest and tax * Acco
Slide 60: Debt Schedule at 31 December 2016
DEBT SCHEDULE AT 31 DECEMBER 2016* (in €m) > 27% of debt with term to maturity > 5 years > Average term to maturity: 3.8 years Corporate borrowings > Cost of financing (debt drawn down) : Project-related loans 3.2% at 31 December 2016 351(1) 151(3) 270(4) Drawn at 31/12/2016 77 27 46(2) 2017 2018 20
Slide 61: 10-Year Changes in EBITDA, Cash Flow and Free Cash Flow
10-YEAR CHANGES IN EBITDA, CASH FLOW FROM OPERATING ACTIVITIES AND FREE CASH FLOW* EBITDA (in €m) 355 305 265 232 260 217 224 215 228 221 CASH FLOW FROM OPERATING ACTIVITIES after financial and tax expenses (in €m) 229 182 151 133 132 133 149 122 128 117 FREE CASH FLOW (in €m) 337 235 191 221 168 16
Slide 62: Outlook
é., OUTLOOK
Slide 63: Nexity Backlog at 31 March 2017
NEXITY BACKLOG* AT 31 MARCH 2017 (in €m, excl. VAT, incl. Iselection, PERL, International, Edouard Denis and Primosud) 19 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES +2% 4,008 4,092 461 Commercial 544 3,315 3,355 3,283 3,293 3,085 486 449 487 2,734 709 383 390 3,464 3,631 Residential 2,702 2,869 2,83
Slide 64: 2017 Outlook Confirmed
2017 OUTLOOK CONFIRMED* Growth of Nexity’s reservations in a 2017 French market expected stable (125,000 NEW HOME RESERVATIONS reservations), Nexity’s market share increase of around 1 point COMMERCIAL REAL ESTATE At least €350 million ORDER INTAKE REVENUE Growth of around 10% CURRENT OPERATING PROF
Slide 65: Medium-Term Target
MEDIUM-TERM TARGET NEXITY SHARE OFFERS 2015 2016 2017 2018 Current GROWTH operating €220m €266m €300m €325m profit* 2015 2016 2017 2018 Dividend RETURN per share €2.0 €2.2 €2.4** 2.4 €** paid * Financial data and indicators based on Nexity’s operational reporting, with joint ventures proportionately
Slide 66: Dividend
DIVIDEND DIVIDEND PER SHARE (in € per share) 6.0 4.0* 2.2 2.4 2.4 1.9 2.0 2.0 2.0 2.0 2.0 1.6 1.5 1.6 1.0 2.0 Paid in : 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017** 2018** * Special dividend following the sale of the participation held in Eurosic ** Pending decision of Nexity’s
Slide 67: Appendix
5. APPENDIX
Slide 68: Nexity Origins
NEXITY ORIGINS Ferret Savinel becomes Férinel Férinel becomes (Groupe Arnault) George V 1996 2000 2004 1979 1989 1995 George V Creation of contributed Creation to CGIS IPO of CGIS(1), by Groupe Arnault Exit from Vivendi SARI + CIP(2) within Générale des Group via LBO -SEERI Eaux Group 2012 2007 2009
Slide 69: 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) +21% 391 318 309 324 292 125 DEVELOPERS(1) +21% Sales 89 89 104 87 SOCIAL HOUSING(2) 133 +22% 101 Financing authorisations 117 106 109 SINGLE-FAMILY HOUSES(3) 133 +20% 128 103 99 111 Sales 2012 2013 2014 2015 2016 (
Slide 70: Residential Market: Sales & New Supply
RESIDENTIAL MARKET : SALES & NEW SUPPLY SALES AND NEW SUPPLY AT 31 DECEMBER 2016 (number of apartments, in units) Sales 40,000 New supply 35,000 30,000 2016 sales 25,000 +20% vs 2015 20,000 2016 new supply 15,000 +16% vs 2015 10,000 Q1 Q4 2003 2016 Source : Commissariat Général au Développement Dura
Slide 71: 2016 PTZ Improvement
2016 PTZ IMPROVEMENT* PTZ improvement to support home ownership through a “next-generation PTZ”, extended until end of 2017 Main changes: > Raised income ceilings > Portion of the property price financed by the PTZ increased to 40% (18-26% max. previously), price cap of €300k > Extended deferment pe
Slide 72: Housing: Overestimated Perception of Dependency on Public Expenditure
HOUSING: AN OVERESTIMATED PERCEPTION OF DEPENDENCY ON PUBLIC EXPENDITURE AN IMPORTANT SOURCE OF TAX … PUBLIC EXPENDITURE LOWER THAN REVENUE … (in €bn) CONTRIBUTIONS WEIGHING ON THE SECTOR AND ONLY MARGINALLY BENEFITING THE DEVELOPMENT MARKET 63 64 60 62 56 8 9 54 9 10 44 44 7 9 41 41 41 41 16 16 15
Slide 73: Nexity New Homes Cost Base
NEXITY NEW HOMES COST BASE NEW HOMES COST BASE EVOLUTION OF CONSTRUCTION (average cost of programmes – 2016) COST INDEX Financial costs 100% Marketing & advertising 7% 1% +21% +1.0% Fees and insurance 15% 1,645 1,362 Q1 Q4 Q4 2006 2015 2016 EVOLUTION OF LAND* MEDIAN PRICES Construction costs 52% IN
Slide 74: Evolution of Home Prices
EVOLUTION OF HOME PRICES INDEX PRICES EVOLUTION IN FRANCE (apartments, rebased Q1 1996) 343 263 213 new homes - 100 overall France (prices per sqm) ANNUAL PRICES EVOLUTION IN FRANCE existing homes - (apartments) overall France (prices per home) existing homes - 22% Paris (prices per home) -8% 1996 1
Slide 75: Data for the French Residential Real Estate Market
DATA FOR THE FRENCH RESIDENTIAL REAL ESTATE MARKET NUMBER OF HOUSEHOLDS EXTENT OF OWNERSHIP Metropolitan France(1) (as % of the population) (in millions) CAGR +0.9% +6m 79% 71% 34 65% 64% 28 30 32 27 22 1990 2010 2015e 2020e 2030e 2040e Sources: Eurostat housing statistics March 2016 and www.census.
Slide 76: Trends, Challenges and Our Responses as a Market Operator
TRENDS OUR RESPONSES AS A MARKET OPERATOR TRENDS CHALLENGES MEDIUM-TERM RESPONSES > Very low interest rates > Slowly rising interest rates (≤ 1 point) > Differentiation through innovation and joint construction REAL ESTATE RESIDENTIAL > Stimulus measures boosting demand > Stable selling prices > Rec
Slide 77: Business Activity Key Figures
BUSINESS ACTIVITY KEY FIGURES RESIDENTIAL REAL ESTATE BACKLOG New homes reservations (in volume) (in €m ) 18,890 4,008 3,413 3,315 3,355 3,283 3,293 14,703 14,885 14,432 14,235 3,100 3,085 13,211 12,774 12,322 12,562 2,600 2,734 9,152 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009
Slide 78: 2016 Nexity New Homes Reservations
2016 NEXITY NEW HOMES RESERVATIONS VOLUME VALUE (in units) (in €m, incl. VAT) +32.7% +29.1% 18,890 3,218 197 2,518 Subdivision 79 479 International 2,493 14,235 12,562 2,202 2,097 42 166 292 2,104 10 163 93 10,365 2,943 15,893 New homes +28.8%1,924 2,285 11,741 +35.4% incl. Edouard Denis 1,924 10,36
Slide 79: Key Client Segments Performance
KEY CLIENT SEGMENTS PERFORMANCE VOLUME (in units, excluding Edouard Denis) +28% 15,051 Professional 11,741 32% landlords +15% 10,365 35% 36% Individual investors 44% +30% 37% 43% 6% Other home buyers +36% 6% 5% 19% First-time buyers 21% 16% +49% 2014 2015 2016 NEXITY / Investor Presentation - May 20
Slide 80: 2016 Nexity Reservations in France by Area
2016 NEXITY RESERVATIONS IN FRANCE BY AREA VOLUME VALUE (in units, excluding Edouard Denis) (in €m, incl. VAT, excluding Edouard Denis) +28% +23% 15,051 2,805 2,285 +17% 11,741 37% 45% 10,365 1,924 +22% Paris region 39% 47% 40% 48% +32% 63% +28% 55% 60% 61% 53% Rest of France 52% 2014 2015 2016 2014
Slide 81: Financial Key Figures
FINANCIAL KEY FIGURES* REVENUE CURRENT OPERATING PROFIT (in €m, excl. VAT) (in €m, excl. VAT) AND CURRENT OPERATING MARGIN 3,057 3,073 13.8% 2,838 2,747 2,831 2,737 2,683 2,603 2,632 2,395 9.2% 8.7% 7.3% 7.3% 7.8% 7.1% 7.0% 7.2% 7.0% 330 246 266 206 201 202 200 220 192 184 2007 2008 2009 2010 2011 2
Slide 82: 2016 Financial Indicators by Segment
2016 FINANCIAL INDICATORS* BY SEGMENT 2016 2015 Change % In €m Residential real estate 2,267.4 2,161.7 4.9% Commercial real estate 306.9 379.2 -19.1% Services 494.1 503.8 -1.9% Other activities 4.3 12.5 -65.7% Revenue 3,072.7 3,057.1 0.5% Residential real estate 210.2 189.3 11.0% % of revenue 9.3% 8
Slide 83: 2016 Cash Flow Statement
2016 CASH FLOW STATEMENT* In €m 2016 2015 Cash flow from operating activities before financial and tax expenses 289 237 Cash flow from operating activities after financial and tax expenses 182 149 Change in operating WCR (excluding tax) (28) 87 Change in tax-related working capital, dividends from e
Slide 84: 2016 Consolidated Net Debt Position
2016 CONSOLIDATED NET DEBT POSITION* AT 31 DECEMBER 2016 Draw n Authorised In €m Residential - unallocated corporate credit facility 300.0 Services - unallocated credit facility 31.7 31.7 Put options granted to minority interests 120.0 120.0 Credit for aquisition of companies and fixed assets by the
Slide 85: 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