Nexity Sa · EURONEXT:NXI
Nexity Sa — ESG Presentation (November 2023)
46 slides from Nexity Sa's sustainability presentation, November 2023
Slide 1: CSR Presentation
CSR Presentation November 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: Sommaire
SOMMAIRE Nexity at a glance CSR at Nexity Conclusion Appendix Eco-campus – La Garenne-Colombes (92) 3
Slide 4: Nexity at a glance
Nexity at a glance Hôtel Ponsardin – Reims (51) 4
Slide 5: Nexity: a key player on the French real estate market
01. Nexity at a glance NEXITY: A KEY PLAYER ON THE FRENCH REAL ESTATE MARKET Among the leader in all market segments URBAN PLANNING & DEVELOPMENT SERVICES URBAN PLANNING RESIDENTIAL COMMERCIAL PROPERTY MANAGEMENT SERVICED PROPERTIES DISTRIBUTION 1st 1st 4th 3rd 1st 1st 3rd 2nd (PARIS REGION) INDIVID
Slide 6: 9M 2023 release: key messages
01. Nexity at a glance 9M 2023 RELEASE: KEY MESSAGES 9M business activity and revenue in line with expectations Nexity beats the market thanks to its leading position in bulk sales The sector is facing new market realities Degraded and unstabilised market parameters Mortgage rates for individuals (1
Slide 7: 2023 guidance reminder
01. Nexity at a glance 2023 GUIDANCE REMINDER Barring changes in the market environment > Expected 2023 revenue at €4.3bn (excl. International business) > Operating profit of €250m > Priority focus on controlling net debt and cash to maintain the Group's agility > Dividend payable in 2024 will refle
Slide 8: Steering tightly: operational efficiency, risk management and deleveraging
01. Nexity at a glance STEERING TIGHTLY: OPERATIONAL EFFICIENCY, RISK MANAGEMENT AND DELEVERAGING > Proactive plan to reduce our overhead costs: no job creation, partial replacement of departures, lower consultancy, travel, IT and marketing costs > WCR and debt under control: suspension of land bank
Slide 9: Thinking medium and long term: refocusing the roadmap and accelerating the strategic plan
01. Nexity at a glance THINKING MEDIUM AND LONG TERM: REFOCUSING THE ROADMAP AND ACCELERATING THE STRATEGIC PLAN CAPITALISING ON OUR MANAGED ROLL-OUT OF SUSTAINABLE CITIES LEVERAGING THE CUSTOMER BASE REAL ESTATE KNOW-HOW > Pivoting more quickly towards > Development of serviced real estate > Launch
Slide 10: CSR at Nexity
CSR AT NEXITY Confluence – Lyon (69) 10
Slide 11: A CSR strategy aligned with our corporate purpose "Life Together"
02. CSR at Nexity A CSR STRATEGY ALIGNED WITH OUR CORPORATE PURPOSE "LIFE TOGETHER" Meeting the environmental Making the city inclusive Developing our human challenge and supportive capital Acting for the climate Promoting access to housing for all Strenghten the attractiveness of the company Preser
Slide 12: A CSR governance serving the strategy
02. CSR at Nexity A CSR GOVERNANCE SERVING THE STRATEGY Strategic Variable remuneration of company officers based on the achievement of CSR objectives Remuneration, Board of Directors Appointments and CSR 14 members Commitee1 Financial 5 board members2 targets Validates the CSR Strategy 75% 2023 Var
Slide 13: Meeting the environmental challenge
Meeting the environmental challenge Confluence – Lyon (69) 13
Slide 14: An ambitious environmental strategy
02.1 Meeting the environmental challenge AN AMBITIOUS ENVIRONMENTAL STRATEGY Greenbond Validation of the 2nd Green Deal1 Validation of the 1sr Green Deal*1 €240m alignement 2°C2 alignement 1.5°C2 2022-2025 2018 2019 2020 2021 2022 2023 First New Say on Climate & Biodiversity Commitments commitments
Slide 15: Acting for the climate: ambitious targets raised in 2022
02.1 Meeting the environmental challenge ACTING FOR THE CLIMATE : AMBITIOUS TARGETS RAISED IN 2022 Be a leader in the Become a leading player in the Be exemplary in limitating Facilitate dedicated carbon decarbonisation of the energy renovation of housing and emissions from vehicles and governance a
Slide 16: Nexity: leading low-carbon developer in France
02.1 Meeting the environmental challenge NEXITY : LEADING LOW-CARBON DEVELOPPER IN FRANCE Nexity’s carbon footprint in 2022 An ambitious target Administrative sites and Administrative sites (Scope 3) vehicles (Scope 1 and 2) -42% CO emissions/sq.m delivered for the development business in 2030 2 1.5
Slide 17: Leverages to reduce Nexity's carbon footprint
02.1 Meeting the environmental challenge LEVERAGES TO REDUCE NEXITY’S CARBON FOOTPRINT ACTING ON MATERIALS • Developing the share of refurbishement with Nexity Héritage • Using bio-sourced materials (wood) – Ywood • Developing partnerships to use low-carbon / reused materials 2023 : strategic partne
Slide 18: Nexity commits to building sustainable cities
02.1 Meeting the environmental challenge NEXITY COMMITS TO BUILDING SUSTAINABLE CITIES Lyon Confluence Carrefour Partnership Delivery in 2025 76 sites in France High carbon requirements 12,000 housing units in very low-carbon Biosourced label (level 2) modular Energy Positive Building (BEPOS Effiner
Slide 19: Services at the heart of decarbonising existing buildings
02.1 Meeting the environmental challenge SERVICES AT THE HEART OF DECARBONISING EXISTING BUILDINGS INDIVIDUALS CLIENTS OFFERS PROPERTY MANAGEMENT OFFERS 10,OOO condominium housing units renovated 3,5 million sq.m of low-carbon managed in 20252 between 2022 and 20251 Social, technical and financial s
Slide 20: Acting in favour of biodiversity: achievements in line with our objectives
02.1 Meeting the environmental challenge ACTING IN FAVOUR OF BIODIVERSITY: ACHIEVEMENTS IN LINE WITH OUR OBJECTIVES Be among the pioneers Give prominence to Mobilise employees Limit soil sealing of biodiversity impact biodiversité measurement Measure of the Group’s 100% of targeted employees 100% of
Slide 21: Nexity commits to biodiversity
02.1 Meeting the environmental challenge NEXITY COMMITS TO BIODIVERSITY Deloitte University Solliès-Pont (83) Delivery Q4 2023 Delivery 2027 34,000 sq.m of green spaces 30% of land reserved for green spaces 30 low-carbon timber-frame houses Bioclimatic architecture Label « Ecoquartier » Label « Quar
Slide 22: Making the city inclusive and supportive
Making the city inclusive and supportive Confluence – Lyon (69) 22
Slide 23: Promoting access to housing for all
02.2 Making the city inclusive and supportive PROMOTING ACCESS TO HOUSING FOR ALL DEVELOPING A SOCIAL AND THEMATIC OFFER ✓ Being the leading partner of social housing operators • 50% of Nexity’s reservations ✓ Develop thematic housing: • Multigenerational residences Complicity • Inclusive housing 50
Slide 24: Designing a more inclusive city
02.2 Making the city inclusive and supportive DESIGNING A MORE INCLUSIVE CITY COMMITTING TO HOUSING THE MOST VULNERABLE WITH NEXITY NON PROFIT ✓ Creation in 2018 of a “non-profit” activity ✓ Development of social residences, in particular family shelters, and 2018-2022 RESULTS emergency accommodatio
Slide 25: Developing our human capital
Developing our human capital Confluence – Lyon (69) 25
Slide 26: Commitment of our employees
02.3 Developing our human capital COMMITMENT OF OUR EMPLOYEES Recognition & Loyalty Preferred Company Employee shareholding : ~15% of the share Great Place to Work® capital owned by Group employees and certification managers EMPLOYEES COMMITMENT BOOSTING COLLECTIVE PERFORMANCE Diversity & Inclusion
Slide 27: Conclusion
Conclusion Hôtel Ponsardin – Reims (51) 27
Slide 28: CSR performance recognised by non-financial rating agencies
03. Conclusion CSR PERFORMANCE RECOGNISED BY NON-FINANCIAL RATING AGENCIES AA rating in 2022 Great Place to Work® certification Climate Change : B rating in 2022 C- rating in 2022 Presence in the Bloomberg Gender-Equality Index 28
Slide 29: Our CSR policy, source of differentiation and opportunities
03. Conclusion OUR CSR POLICY, SOURCE OF DIFFERENTIATION AND OPPORTUNITIES Differentiation and anticipation: successfully bid from local authorities/companies Anticipating regulatory requirements and responding to customer needs > Contributing to the carbon strategy of customers, particularly instit
Slide 30: Appendix
Appendix Artchipel – Marseille (13) 30
Slide 31: Sustainable finance
04. Appendix SUSTAINABLE FINANCE Nexity renewed* its corporate credit facility of €800m, with environmental criteria (reduction of the Group’s business lines carbon intensity - Scope 1, 2 and Scope 3 development and volume of energy renovation work approved for condominium housing units) Anticipatio
Slide 32: Preserving resources and promoting the circular economy
04. Appendix PRESERVING RESOURCES AND PROMOTING THE CIRCULAR ECONOMY Our 4 commitments : 1. Developing eco-design and land recycling (designing to minimise the material footprint and developing reversible construction) 2. Increasing the reuse of materials and equipments in our projects 3. Porposing
Slide 33: Focus – adaptation to climate change
04. Appendix FOCUS – ADAPTATION TO CLIMATE CHANGE Real estate is one of the sector most affected by the effects of climate change ✓ Expectation of local authorities • Strategic partner of the tool Bat Adapt developed by the Green Building Observatory (OID) ✓ Taxonomy requirement • Resilience diagnos
Slide 34: Nexity's stakeholders committee
04. Appendix NEXITY’S STAKEHOLDERS COMMITTEE The committee meets twice a year. The aims of this committee are to: ✓ Provide an advisory opinion on strategic issues, paying particular attention to the consistency of Nexity’s positioning with its social and environmental commitments ✓ Identify and ana
Slide 35: Strategic environmental objectives
04. Appendix STRATEGIC ENVIRONMENTAL OBJECTIVES United Nations Sustainable Commitment Objective 2021 Results 2022 Results Development Goals Reduce by 47% emissions related to admnistrative sites and vehicles (Scopes 1 +15% +1% and 2) in 2030 compared to 2019 Reduce by 42% emissions/sq.m for the deve
Slide 36: Strategic societal objectives
04. Appendix STRATEGIC SOCIETAL OBJECTIVES United Nations Sustainable Commitment Objective 2021 Results 2022 Results Development Goals Promoting affordable % of housing reservations intended for 43% 50% housing means-tested households Committing to housing Provide shelter for more than 4,000 people
Slide 37: Strategic social objectives
04. Appendix STRATEGIC SOCIAL OBJECTIVES United Nations Sustainable Commitment Objective 2021 Results 2022 Results Development Goals At least 80% of employees are 80% 80% Strenghten the permanent shareholders attractiveness of the company Hire work-linked training students for 5% 6% 7% of the workfo
Slide 38: Strategic objectives – cross-cutting issues
04. Appendix STRATEGIC OBJECTIVES – CROSS-CUTTING ISSUES United Nations Sustainable Commitment Objective 2021 Results 2022 Results Development Goals Annual improvement in the average client Improving client satisfaction (CSAT) across the entire +1.6 points +9.1 points satisfaction Residential Real E
Slide 39: H1 2023 business activity: development in line with the market
04. Appendix H1 2023 BUSINESS ACTIVITY: DEVELOPMENT IN LINE WITH THE MARKET AND GROWTH IN PROPERTIES WITH SERVICES New home reservations in France: -20% by volume;-28% by value Residential Real Estate • Retail sales: -41% by volume;-43% by value • Bulk sales: +16% by volume;+5% by value Commercial R
Slide 40: H1 results that reflect the robustness of the model
04. Appendix H1 RESULTS THAT REFLECT THE ROBUSTNESS OF THE MODEL IN HIGHLY CHALLENGING REAL ESTATE MARKET Revenue • €2,043m, stable at a constant scope • up 4% vs H1 2022 Limited decline • €82m of operating profit • 4.0% margin rate (-160 bps vs H1 2022) • Net debt (before lease liabilities): €912m
Slide 41: 9M 2023: business activity in line with expectations
04. Appendix 9M 2023: BUSINESS ACTIVITY IN LINE WITH EXPECTATIONS Total reservations • Retail sales Residential Real Estate -41% in volume ; -44% in value -20% vs 9M 2022 in volume 9,213 reservations -27% in value • Bulk sales +9% in volume ; +3% in value Commercial Real Estate • In a standstill mar
Slide 42: A governance aligned with the Afep-Medef code
04. Appendix A GOVERNANCE ALIGNED WITH THE AFEP-MEDEF CODE Strong commitment to ensuring ongoing board effectiveness and diversity Remuneration, Appointments and CSR Committee as of 1 January 2023 Chairman: Charles Henri Filippi NUMBER OF DIRECTORS1 10 5 members Appointed for a 4-year term 100% of i
Slide 43: A diversified and well-balanced shareholder base
04. Appendix A DIVERSIFIED AND WELL-BALANCED SHAREHOLDER BASE At 30 June 2023 FCPE and other Nexity’s CONCERT GROUP employees (1) Managers (2) 20% 3.5% 7.6% La Mondiale 5.0% 7.0% Crédit Mutuel Arkéa 6.4% Crédit Agricole 5.0% Assurances Assurances du Free float 65.6% Crédit Mutuel Vie 56,129,724 shar
Slide 44: Net debt under control at end-June 2023
04. Appendix NET DEBT UNDER CONTROL AT END-JUNE 2023 DEBT RATIO MODERATE, SUBSTANTIALLY BELOW BANK COVENANT LIMITS 2.1x 2.5x EBITDA (1) EBITDA (1 & 2) (€390m) (€370m) (in €m) +1 +138 -100 +53 1,012 912 820 31-dec-22 Free cash flow Dividends Other 30 June 2023 Sale proceeds of 30 June 2023 before Pol
Slide 45: H1 2023 financial structure: no significant repayments due before 2025
04. Appendix H1 2023 FINANCIAL STRUCTURE NO SIGNIFICANT REPAYMENTS DUE BEFORE 2025 NET DEBT STRUCTURE LONG TERM DEBT MATURITY Undrawn credit facility: €520m No significant redemption date before March 2025 Bond issues 321(3) In €m Dec. 2022 June 2023 Commitment to purchase minority interests 220(6)
Slide 46: nexity.group
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