Nexity Sa · EURONEXT:NXI
Nexity Sa — H1 2023 Earnings Presentation
28 slides from Nexity Sa's earnings presentation, Jul 26, 2023
Slide 1: 2023 Half-Year Results
2023 Half-Year Results Webcast - 26 July 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: Introduction
Introduction Eco-campus – La Garenne-Colombes (92) 3
Slide 4: Real Estate: New Paradigms
REAL ESTATE : NEW PARADIGMS VERY UNFAVOURABLE ECONOMIC AND POLITICAL CONTEXT REAL ESTATE DEVELOPMENT MARKET SLOWS SHARPLY > New home market below 100,000 units in 2023 > Inflation settles at over 5% in 2023 (-20% vs. Q1 2022) > ECB rate hike likely to continue in H2 2023 > Volume of new home market
Slide 5: New Outlook for 2023
NEW OUTLOOK FOR 2023(1) > Expected 2023 revenue at €4.3bn (excl. International business) with operating profit of €250m > Priority focus on controlling net debt and cash to maintain the Group's agility > Dividend payable in 2024 will reflect the level of net profit achieved in 2023(2) > Faster imple
Slide 6: Action Plan for the Paradigm Shift: Steering Tightly
ACTION PLAN FOR THE PARADIGM SHIFT Steering tightly… bolstering the operational efficiency > proactive plan to reduce our overhead costs: no job creation, partial replacement of departures, lower consultancy, travel, IT and marketing costs. Active approach to the management of our real estate develo
Slide 7: Refocusing Activities on France
REFOCUSING ACTIVITIES ON FRANCE Halting business of Nexity abroad EFFECTIVE DISPOSAL OF THE POLISH SUBSIDIARY ✓ Sale to Develia, a Polish developer ✓ Sale price: €100m ✓ Will help to reduce the Group’s net debt ✓ Polish competition authority authorisation obtained ➢ Portugal : disposal of the subsid
Slide 8: Action Plan for the Paradigm Shift: Medium and Long Term
ACTION PLAN FOR THE PARADIGM SHIFT Thinking medium and long term... Accelerating the roll-out of the strategic plan: adapting to the paradigm shift > Managed real estate and intensification of the cross-relationship with Services: broadening the range of operated and serviced products (student, seni
Slide 9: Off-Site Modular Construction
OFF-SITE MODULAR CONSTRUCTION Optimising the cost price of programmes TOPHAT PARTNERSHIP 10% of Nexity’s housing production completed in factories by 2028 ▪ Existing industrial player in the UK: production of 5,000 homes per year ▪ Affordable and energy-saving products ▪ Making modular construction
Slide 10: Becoming the Leader in Urban Regeneration
BECOMING THE LEADER IN URBAN REGENERATION High potential lands CARREFOUR ALLIANCE Upgrading of 76 Carrefour sites in France, located on the outskirts and in city centres ▪ Long-term partnership ▪ Develop mixed-used programmes with high environmental performance ▪ Building potential of around 800,000
Slide 11: Business Activity H1 2023
Business activity H1 2023 Hotel Ponsardin – Reims (51) v 11
Slide 12: H1 2023 Business Activity
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 Real Estate €27
Slide 13: A Market in Which Nexity Outperformed
A MARKET IN WHICH NEXITY OUTPERFORMED Thanks to bulk sales NEW HOME MARKET NEXITY’S NEW HOME RESERVATIONS Q1 2023 H1 2023 In volume (number of units) In volume (number of units) -34% -20% 31,996 7,639 4,736 -8% 2,791 6,085 +16% 21,008 BULK SALES BULK SALES 4,360 3,243 27,260 -39% RETAIL 4,848 -41% R
Slide 14: Residential Real Estate Breakdown by Client
RESIDENTIAL REAL ESTATE BREAKDOWN BY CLIENT A 16% increase in bulk sales H1 2022 H1 2023 37% 53% Bulk Sales 20% 18% 27% (+16% by volume, +5% by value) 42% ▪ Strenghtening of social housing operators 7,639 6,085 ▪ Average sales prices : -10% (product mix) reservations reservations 10% 29% Retail Sale
Slide 15: A Controlled Supply-for-Sale
A CONTROLLED SUPPLY-FOR-SALE Through a business policy adapted to the context DIVERSIFIED AND ADAPTED SUPPLY-FOR-SALE LOW RISK SUPPLY-FOR-SALE** 6.8 6.9 No. of 5.2 month 4.3 4.4 Completed homes < 100 units Under -7% construction 10,153 35% 8,787 9,409 7,161 7,655 No. of units In project phase 64% 20
Slide 16: Residential Real Estate: Emblematic Projects
RESIDENTIAL REAL ESTATE Emblematic projects LES BELVEDERES INAUGURATION OF THE FIVES CAIL ECO- ATHLETES AND PARA ATHLETES VILLAGE DISTRICT IN LILLE ▪ 19 buldings ▪ 124 housing units ▪ 527 housing units ▪ Mixed-used project ▪ 1 office building ▪ 1 residence - NF Habitat HQE, Effinergie + and BEPOS ▪
Slide 17: Commercial Real Estate: Secure Large-Scale Projects
COMMERCIAL REAL ESTATE Secure large-scale projects COMMERCIAL REAL ESTATE ECO CAMPUS IN LA GARENNE-COLOMBES BORDEAUX BELVÉDÈRE MOKUZAI MARKET IN FRANCE* (~140,000 sq.m SDP) (~7,500 sq.m SDP) Investment in France -51% vs H1 2022 Office Investment in the Paris region ▪ Delivery in 2024 ▪ Wood-frame st
Slide 18: Serviced Properties Business in Full Growth
SERVICED PROPERTIES BUSINESS IN FULL GROWTH RECURRRING PROPERTY MANAGEMENT ACTIVITY Coworking: 9 openings in H1 2023 Property Management: reccuring revenue ▪ 70% recurring revenue from property management ▪ Renewal of calls for tenders on major clients in commercial property management Beaurepaire (
Slide 19: Financial Results H1 2023
Financial results H1 2023 Build-to-rent with Urban Campus – Massy (91) v 19
Slide 20: Model Proves Robust in Highly Challenging Real Estate Market
MODEL PROVES ROBUST IN HIGHLY CHALLENGING REAL ESTATE MARKET Revenue • €2,043m, up 4% vs H1 2022 Operating profit and • €82m margin rate • i.e a 4.0% margin rate (-160 bps vs H1 2022) Net debt before lease • €912m after the disposal of the Polish subsidiary liabilities Working capital • €1,385m, up
Slide 21: Revenue: +4%
REVENUE: +4% Stable on a like-for-like basis (in €m) GROUP Residential Commercial Services +4% Real Estate Real Estate 1,964 2,043 -1% 1,381 1,370 -3% +65% 421 408 265 161 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 ➢ +3% excluding international ➢ Angelotti contribution: €74m ➢ E
Slide 22: Limited Decline of Operating Profit
LIMITED DECLINE OF OPERATING PROFIT IN A VERY CHALLENGING MARKET (en €m and in % of revenue) Residential Real Commercial Real Services Estate Estate GROUP 110 65 82 36 46 13 23 Distribution 9.5% 24 5.6% 21 1 4.7% 1,3% 4.0% 3.4% 13% 8.7% Property management 23 23 and Serviced properties 8.0% 7.1% H1
Slide 23: Working Capital Requirement Before Tax
WORKING CAPITAL REQUIREMENT BEFORE TAX WCR under control Change 2022(1) H1 2023 In €m H1 2023/2022 Residential Real Estate in France 1,086 1,126 40 4% Commercial Real Estate 123 143 20 16% Real estate Development in France 1,210 1,269 60 5% International 113 101 (12) -10% Services and other activiti
Slide 24: Net Debt Under Control at End-June 2023
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 Polish Polish su
Slide 25: H1 2023 Financial Structure
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) Bond issues a
Slide 26: Conclusion
Conclusion Artchipel – Marseille (13) 26
Slide 27: Nexity as a Responsible Global Real Estate Operator
NEXITY AS A RESPONSIBLE GLOBAL REAL ESTATE OPERATOR Carbon trajectory aligned with 1.5°C Studéa Belvédère - Bordeaux (33) Morning Laffitte – Paris 9ème Carrefour alliance Top Hat Partnership 27
Slide 28: 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