Slide 1: 2020 Half-Year Results Investor Presentation
2020 HALF-YEAR RESULTS INVESTOR PRESENTATION JULY 2020
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: H1 2020 Financial performance
H1 2020 Financial performance Revenue €1,716m ; -7% vs H1 2019 EBITDA €163m ; -28% Current operating profit €50m Net profit Group share €7m Net financial debt before lease liabilities €1,381m (€2,268m incl. lease liabilities) WCR €1,309m ; +28% compared to 2019 Nexity / Investor presentation – July
Slide 4: H1 2020 Business activity
H1 2020 Business activity Residential Real New home reservations in France • 9,451 units (stable compared to H1 2019) Estate • €2,023m (+5% compared to H1 2019) Property Management Services to • Resilient activity (no churn in H1 2020) individuals Serviced residences • Seniors (Domitys): + 7 residen
Slide 5: Implication of the public-health crisis (Covid-19) in H1 2020 New homes
Implication of the public-health crisis (Covid-19) in H1 2020 New homes Notarial deeds – Retail sales Activity on construction sites 100 +43% 80 60 40 20 ▪ Construction sites operational 0 after a halt Jan. Feb. Mar. Apr. May June Jan. Feb. Mar. Apr. May. Jun. Jul. 2019 2020 ▪ Strong recovery of the
Slide 6: Macroeconomic environment
Macroeconomic environment GDP Growth in volume – France Unemployment rate Year-on year in % Synthetic index – Household confidence Low interest rates 108 108 5.07% 104 102 97 2.20% 1.51% 1.25% 88 0.80% -0.01% 80 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 2008 200
Slide 7: Building permits and housing starts
INDIVIDUAL CLIENTS Residential Real Estate Building permits and housing starts Housing starts Building permits 425,000 481,600 487,600 -10.2% -8.8% 410,500 449,200 398,200 409,600 368,800 May-9 May-17 May-18 May-19 May-20 May-17 May-18 May-20 ▪ The 2nd round of local elections at the end of June sho
Slide 8: A market still undersupplied but impacted by the crisis
INDIVIDUAL CLIENTS Residential Real Estate A market still undersupplied but impacted by the crisis (in units) ~ -25% 169,000 163,600 162,600 153,700 Demographics 121,100 125,600 ~ 125,000 Stability of tax incentives in supply-constrained areas 105,900 108,600 107,500 Support of institutional investo
Slide 9: Nexity new home reservations in France
INDIVIDUAL CLIENTS Residential Real Estate Nexity new home reservations in France Reservations in volume Breakdown by clients (in units, including Ægide from 1st July 2018) 9,486 9,451 9,486 9,451 Bulk sales: 7,794 8,252 Stable 19% 16% Social landlords: -18 % 5,603 5,794 In H1 2020 compared 9% 36% I
Slide 10: Nexity new homes: price trends
INDIVIDUAL CLIENTS Residential Real Estate Nexity new homes: price trends Average prices (in thousand of euros, excl. PERL, iSelection, Ægide, International and bulk sales) 261.5 267.3 265.8 Paris region: -0.6% 264.8 265.4 Paris region exl. Paris: +0.2% 256.8 231.0 France: +3.2% 223.8 218.0 206.8 Re
Slide 11: Nexity new homes: supply for sale
INDIVIDUAL CLIENTS Residential Real Estate Nexity new homes: supply for sale Current supply for sale (in units, excl. International and including Ægide from 1 July 2018) -20% 9,005 8,859 ▪ Very high pre-sales rate: 80% at 8,651 1% end-June 2020 (compared to 74% 6,988 26% 7,097 at end-June 2019) 6,77
Slide 12: Backlog and business potential at 30 June 2020
INDIVIDUAL CLIENTS Residential Real Estate Backlog and business potential at 30 June 2020 Backlog* Business potential** (in €m, incl. Subdivisions) (in units, excl. International and Subdivisions, including Ægide from 1 July 2018) +14% -5% 5,285 53,602 55,354 52,367 4,640 47,560 4,161 41,813 41% 35%
Slide 13: Acquisition of pantera
Acquisition of ▪ Nexity enters the attractive German residential market — Size, sustainable growth potential, fragmentation, legal framework, acceptable level of risk and resilience during the health crisis ▪ Acquisition of 65% of the capital of pantera AG (March 2020) by Nexity, with 35% retained b
Slide 14: Property management for individuals and distribution
INDIVIDUAL CLIENTS Real Estate Services to Individuals Property management for individuals and distribution PMI – Units under management Distribution – Total Reservations (in thousands of units) (in units) 2018 2019 H1 2020 -29% Condominium 721 709 709 management 2,277 277 Rental 175 175 175 1,623 m
Slide 15: Serviced Residences
INDIVIDUAL CLIENTS Real Estate Services to Individuals Serviced Residences STUDENT RESIDENCES SENIOR INDEPENDENT LIVING FACILITIES Occupancy rate* 100 107 83 35 100 42 72 59 90 52 41 36 80 72 25 58 15 70 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020 60 Jan Feb Mar April May June July Aug Sept
Slide 16: Business potential and order intake
COMMERCIAL CLIENTS Commercial Real Estate Business potential* and order intake Business potential for Commercial Real Estate Order intake (in €m excl. VAT) at 30 June 2020 (in €m) +59% -5% 219 2,796 2,966 2,803 138 72% 77% 74% 74 214 105 41 28% 23% 26% 33 33 5 2018 2019 H1 2020 H1 2018 H1 2019 H1 20
Slide 17: 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) Financial occupancy rate H1 2020 100 -0.2% 95 90 18.6 19.5 19.4 85 80 10,6 11.5 11.4 75 70 8.0 8.0 8.0 65 60 Jan Feb Mar Apr May June 2018 2019 H1 2020 Re
Slide 18: H1 2020 Results
H1 2020 Results in millions of euros H1 2020 H1 2019 % Change Revenue 1,716.1 1,840.4 -7% Change -6.8% -55.5% EBITDA 163.5 226.4 -28% as a % of revenue 9.5% 12.3% Leases (90.1) (81.7) 10% EBITDA after leases 73.3 144.7 -49% as a % of revenue 4.3% 7.9% Current operating profit 50.2 125.4 -60% as a %
Slide 19: H1 2020 Revenue and lockdown estimated impacts
H1 2020 Revenue and lockdown estimated impacts (in €m) -7% 1,840 +130 1 -380 1,716 229 +170 -50 354 Commercial Clients +55% 1,611 1,362 Individual Clients -15% H1 2019 H1 2020 portfolio impact* COVID impact portfolio impact* COVID impact Individual Clients: -€250m Commercial Clients: +€120m ▪ Estima
Slide 20: H1 2020 EBITDA and margin rates
H1 2020 EBITDA and margin rates (in €m and in %) Individual Clients Commercial Clients Other activities Group -63€m -€99m 226 209 (12.3%) (13.0%) 163 (9.5%) 110 (8.1%) +€34m 61 (17.2%) 27 (11.8%) +€3m -10 -7 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 Residential Real Estate: €27
Slide 21: Reconciliation between H1 2020 EBITDA and current operating profit
Reconciliation between H1 2020 EBITDA and current operating profit (in €m) -€113m 163 -82 -24 +1 -8 50 H1 2020 Right-of-use leased Depreciation, Provision charge Share-based H1 2020 Current EBITDA asset depreciation amortisation (-) / reversals (+) payments Operating Profit and impairment of provisi
Slide 22: Simplified balance sheet at 30 June 2020
Simplified balance sheet at 30 June 2020 (in €m) Equity 1,664 1,666 (incl. non-controlling interests) Goodwills 101 Provisions Other assets 259 Right-of-use 887 Lease liabilities 803 (IFRS 16) leased assets Total net debt: €2,268m Net financial debt WCR 1,309 1,381 before lease liabilities ASSETS EQ
Slide 23: Change in H1 2020 Working Capital Requirement (WCR)
Change in H1 2020 Working Capital Requirement (WCR) (in €m) +€290m 1,309 +66 120 +56 +18 108 1,019 +150 54 90 1,081 875 2019 Individual Clients Individual Clients Commercial Clients Other Activities H1 2020 France International (incl. Income tax) Individual Clients: +€206m Individual Clients Commerc
Slide 24: Change in net financial debt before lease liabilities
Change in net financial debt before lease liabilities (in €m) - €463m -918 +165 -226 -35 -32 -1,381 -89 -130 -116 2019 EBITDA Change in Interest and CAPEX Repayment of Dividend and External growth 30 June 2020 operating WCR tax payments lease liabilities share buyback programmes ▪ The Group’s cash p
Slide 25: H1 2020 Cash-flow statement
H1 2020 Cash-flow statement In millions of euros H1 2020 H1 2019 Cash flow from operating activities before financial and tax expenses 160.2 206.6 Cash flow from operating activities after financial and tax expenses 119.4 142.1 Change in operating WCR (excluding tax) (231.5) (209.4) Change in tax-re
Slide 26: Backlog and total business potential at June 2020
Backlog and total business potential at 30 June 2020 Backlog* Development business potential** (in €m) +11% 5,659 €14.9bn 5,095 373 4,469 456 308 Residential Commercial 5,285 Real Estate 4,640 Real Estate 4,161 €12.1bn €2.8bn 72,441 units 31 Dec. 2018 31 Dec. 2019 30 June 2020 New homes Subdivisions
Slide 27: Trends
Trends ▪ Resilience of Nexity’s business lines and business model ▪ Substantial recovery in activity in June ▪ Half-year period not representative of the full year ▪ Sharp improvement expected in H2 2020, although not returning to the same level as in H2 2019 ▪ Given the ongoing public health-relate
Slide 28: Nexity's ownership structure
Nexity’s ownership structure 30 JUNE 2020 56,129,724 shares(1) Crédit Mutuel Arkéa 5.3% 5.3% Concert 14.8% AA. Dinin, New Port (2) and other Nexity’s group managers belonging to the concert group 14.8% 20.2% 3.4% 6.4% FCPE and other employees(3) 3.4% Crédit Agricole Assurances 6.4% Free float 68.4%
Slide 29: Appendix
Appendix
Slide 30: Implications of the public-health crisis on the Group's activities
Implications of the public-health crisis (COVID-19) on the Group’s activities Nexity’s resilience Nexity is impacted by the crisis ▪ Hard lockdown which put the construction sites to a halt and strongly impacted the signing of reservations and notarial deeds of sales ▪ Strong economic recession that
Slide 31: Measures taken to face the public-health crisis (Covid-19)
Measures taken to face the public-health crisis (Covid-19) Operational and financial measures ▪ State-sponsored unemployment scheme used only on a careful selected and targeted basis for operating companies where worksites and projects have been forced to shut down ▪ No use of State-aids ▪ Strict co
Slide 32: La Garenne-Colombes (Hauts-de-Seine)
La Garenne-Colombes (Hauts-de-Seine) Engie: a financial and strategic development partnership ▪ Acquisition with Engie in July 2018 of a 9-hectares plot of PSA group industrial land in La Garenne-Colombes (92) ▪ Conclusion of a technological partnership to develop with Engie an ambitious general int
Slide 33: H1 2020 revenue
H1 2020 revenue o/w Covid o/w portfolio H1 2020 H1 2019 % change in millions of euros impact impact* Individual Clients 1,361.8 1,611.0 -15% (380) 130 Residential Real Estate 949.9 1,181.9 -20% Real Estate Services to Individuals 411.9 429.0 -4% Property Management for Individuals (including franchi
Slide 34: H1 2020 EBITDA and margin rates
H1 2020 EBITDA and margin rates H1 2020 H1 2019 Change Margin rate Margin rate EBITDA EBITDA in €m as a % of as a % of in millions of euros revenue revenue Individual Clients 109.6 8.1% 208.9 13.0% (99.3) Residential Real Estate 26.9 2.8% 97.8 8.3% (70.8) Real Estate Services to Individuals 82.7 20.
Slide 35: H1 2020 Current Operating Profit (COP) and margin rates
H1 2020 Current Operating Profit (COP) and margin rates H1 2020 H1 2019 Margin rate Margin rate Change COP as a % of COP as a % of in €m in millions of euros revenue revenue Individual Clients 18.7 1.4% 124.9 7.8% (106.2) Residential Real Estate 9.7 1.0% 80.1 6.8% (70.4) Real Estate Services to Indi
Slide 36: Breakdown into development and services
Breakdown into development and services EBITDA EBITDA Current operating Revenue IFRS 16 (after leases) profit H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 in €m Realised Realised Realised Realised Realised Realised Realised Realised Residential Real Estate 950 1,182 27 98 19 86 10
Slide 37: Financial debt before lease liabilities analysis
Financial debt before lease liabilities analysis ▪ Gross debt drawn down at 30 June 2020: €2,255m ▪ Bond issues and commitments to buyback minority interests schedule*: €1,318m (in €m) (in €m) 253 515 992 349 €2,255 685 m 162 156 84 326 29 20 4 Bond issues (Euro PP and convertibles) Corporate borrow
Slide 38: 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