INVESTOR PRESENTATION
MARCH 2019
INVESTOR PRESENTATION MARCH 2019 Disclaimer The information - - PowerPoint PPT Presentation
INVESTOR PRESENTATION MARCH 2019 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
MARCH 2019
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Nexity / Investor presentation March 2019
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 herein. Neither the Company, nor its shareholders, nor their advisors or representatives, nor any other person shall have any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection with this document. This document does not constitute an offer to sell or an invitation or solicitation of an offer to subscribe for or purchase any securities, and this shall not form the basis for or be used for any such offer or invitation or other contract or engagement in any jurisdiction. The information, assumptions and estimates that the Company could reasonably use to determine its targets are subject to change or modification due notably to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks presented in Section 2 of the Registration Document filed with the AMF under number D.18-0272 on 5 April 2018, could have an impact on the Company’s ability to achieve these objectives. Accordingly, the Company cannot give any assurance as to whether it will achieve the objectives described, and makes no commitment or undertaking to update or otherwise revise this information. No assurance is given as to the fairness, accuracy, completeness or correctness of the information or opinions contained in this document. Unless stated otherwise, the financial data and indicators presented are based on Nexity’s operational reporting (under IFRS with joint ventures proportionately consolidated), and reflect the impact of two new reporting standards, IFRS 15, application of which is mandatory in periods beginning on or after 1 January 2018, and IFRS 16, mandatory in periods beginning on or after 1 January 2019, which the Group is applying early from 1 January
(French tax on value added by the business) as Corporate income tax, to improve its comparability.
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Nexity / Investor presentation March 2019
#Our Real Estate Services Platform #2018 Financial results #Business activity — Individual Clients — Commercial and Local Authority Clients #Outlook #Appendix
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Nexity / Investor presentation March 2019
So we need to: # Provide solutions to demographic, sociological and environmental challenges # Devise solutions to our Clients’ requirements by harnessing new uses and create shared value # Think about all aspects of urban life # Build sustainably # Act locally, respecting regions and their specific priorities
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Nexity / Investor presentation March 2019
Environmental impact management
Project A list)
Leader in digital rela estate
nexity.fr website in 2018
Socio-economic impact
income tax
Human development
First integrated real estate player
Societal commitment
(Nexity Non Profit)
* QPV: priority urban planning districts ** 2017 data
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Nexity / Investor presentation March 2019
REVENUE €4.1bn
+16%
COMMERCIAL REAL ESTATE ORDER INTAKE
€349m
NEW HOME RESERVATIONS IN FRANCE
+7%
In volume
+10%
In value
EBITDA In % of revenue €523m
12.6%
+14%
** Guidance announced on 20 February 2018, and revised upward
Continued growth in Nexity’s market share in a French market expected to see slight contraction
€400m >12%
2018 Guidance ** DEVELOPMENT BACKLOG
€4.5bn
+12%
NET DEBT BEFORE IFRS 16
€757m
Total net debt including IFRS 16 : €1,567m
NET PROFIT BEFORE NON-RECURRING ITEMS
€198m
+12%
RESIDENTIAL MARKET SHARE*
12.4%
+1.6 pt
* Market share calculated on 157,600 new home reservations (128,000 retail sales from ECLN and 29,600 bulk sales from FPI)
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Nexity / Investor presentation March 2019
French leader in serviced senior residences Stake increased to 63% of the share capital Corporate concierge services Acquisition of 100% of the share capital Digital plateform (sensors placed in buildings) Acquisition of 79% of the share capital Leading player in the Paris ready- to-use office space market Acquisition of a 54% stake Property Manager, Broker and specialised retail spaces consulting Majority stake of 71%
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Nexity / Investor presentation March 2019
235 191 337 162 118 42 9 221 168 152 232 222 2013 2008 2009 2010 2014 2011 2015 2012 2016 2017 reported 2017 restated 2018 265 217 224 215 232 228 221 260 305 368 461 523 151 122 133 132 128 133 117 149 182 239 311 350 EBITDA
(in €m)
Average 2008-2018 : 176 Average 2008-2018 : 173 Average 2008-2018 : 286 Cash flow from operating activities after financial and tax expenses
(in €m)
Free cash flow
(in €m)
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Nexity / Investor presentation March 2019
+16% +14% +10% +12% +52% +34%
* Based on average number of shares outstanding over the period In million of euros 2018 2017 restated Revenue 4.135,0 3.571,3 EBITDA 523,0 460,6 % of revenue 12,6% 12,9% Current operating profit 372,7 337,9 Remeasurement of Ægide-Domitys following acquisition of control 79,2
451,9 337,9 Net financial income / (expense) (51,7) (38,5) Income tax (113,1) (105,9) Share of profit/(loss) from equity-accounted investments (4,7) (4,9) Net profit 282,4 188,6 Non-controlling interests (5,5) (6,0) Net profit attributable to equity holders of the parent company 276,9 182,7 Net profit attributable to equity holders of the parent company before non-recurring items 197,7 175,8 In euros Net earnings per share* 4,95 3,30 Net earnings per share* before non-recurring items 3,53 3,17
+11%
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Nexity / Investor presentation March 2019
407 581 4 3,160
+215
2018 Other activities
+175
2017 restated Individual Clients (like-for-like basis) Individual Clients Ægide-Domitys
+174
Commercial Clients
4 3,550
4,135 3,571 +15.8% +12% +43%
>
Revenue up 16% compared to 2017 (+11% on a like-for-like basis)
>
Individual Clients: Ægide-Domitys S2 2018 revenue was €175m (€83m for development activities and €91m for the residences’ management activities)
>
Commercial Clients: delivery of Smart Side building and increased volume under construction compared to 2017
(in €m) Individual Clients Commercial Clients Other activities
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Nexity / Investor presentation March 2019
EBITDA
(in €m) 416 477 67 72
2017 restated
2018
461 523 13.6%
EBITDA : is defined by Nexity as equal to current operating profit before depreciation, amortisation and impairment of non-current assets, net changes in provisions, share-based payment expenses and the transfer from inventory of borrowing costs directly attributable to property developments, plus dividends received from equity-accounted investees whose operations are an extension of the Group’s business. Depreciation and amortisation includes rights of use calculated in accordance with IFRS 16, together with the impact of neutralising internal margins on disposal of an asset by development companies, followed by take-up of a lease by a Group company
12.6%
12.9% 13.2% 13.4% 16.5% 12.3% Individual Clients
2018 Individual Clients Commercial Clients Other activities 2017 restated
Commercial Clients
2018 2017 restated
Group
2018 2017 restated
+5 M€ +61M€
>
€488m on a like-for-like basis ; margin rate at 12.3%
EBITDA MARGIN
(in %)
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Nexity / Investor presentation March 2019
896 967 757 112 1,579 1,764 810
Goodwills
Total net debt: €1,567m
(in €m)
ASSETS EQUITY AND LIABILITIES
WCR Other assets Provisions Equity
(incl. Non-controlling interests)
Net financial debt before IFRS 16 IFRS 16 Leases
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Nexity / Investor presentation March 2019
806 762
32 87
+12 2017 restated
Individual Clients Residential real estate Individual Clients Real Estate Services to individuals
+108
Commercial Clients
+16
Other activities
48
2018
817 896 +€80m
> Individual Clients: virtually stable working capital in Residential Real Estate (+1.6%) in spite of strong momentum in this segment (backlog: +18%),
and an improvement in working capital in Real Estate Services to Individuals , mainly due to consolidation of the Domitys business. Pre-sales rate still at a high level: 69%
> Commercial Clients: higher levels for certain developments with less favourable client payment schedules > Other activities: includes new land positions secured by the Group’s urban regeneration business (Villes & Projets)
(in €m)
Commercial Clients Other activities (incl. income tax) Individual Clients
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Nexity / Investor presentation March 2019
2017
+508
Interest and tax payments
Cash flow from
before WCR, interest and tax Change in
CAPEX
Share buyback programme
2018
Future lease payments due
Dividend External growth*
(in €m)
* External growth for €306m (Ægide-Domitys for €226m, Morning Coworking for €64m and PMI agencies for €16m) and remeasurement of commitments to buy out minority interests of previous acquisitions for €45m
1.8x
2018 EBITDA
(€419m)
vs 2.5x
EBITDA excl. IFRS 16 (targeted threshold given in June 2018)
> 2018 increase in net financial debt is mainly the result of external growth transactions and remeasurement of commitments to buy out minority interests
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Nexity / Investor presentation March 2019
> Net cash from financial investments: €78m mainly corresponds to external growth transactions (acquisition of 18% of Ægide, a majority stake in Morning Coworking and several firms in property management for individuals) > Net cash from financing activities: €51m corresponds to new borrowings net of redemptions (€39m), to the ORNANE bond issue (€200m) less the redemption of a bond (-€135m), payments relating to commitments to buy out minority interests over the period (-€34m) and the cost of the share buyback programme (-€20m)
In €m FY 2018 FY 2017 restated Cash flow from operating activities before interest and tax expenses 508 448 Cash flow from operating activities after interest and tax expenses 350 311 Change in operating Working capital (excluding tax) (102) (64) Change in tax-related working capital, dividends from equity-accounted investments and other 22 17 Net cash from / (used in) operating investments (48) (33) Free cash flow 222 232 Net cash from / (used in) financial investments (78) (10) IFRS lease payments made (104) (80) Dividends paid by Nexity SA (140) (133) Net cash from / (used in) financing activities (excluding dividend) 51 132 Change in cash and cash equivalents (50) 141
Business activity
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Nexity / Investor presentation March 2019
SELL
Brokerage for individuals (BtoC and BtoBtoC)
MANAGE
Private areas / Common areas Management of residences
RENT
Rentals for working age people / seniors / students / key accounts
BUY / INVEST
Individual homebuyers / Individual investors Professional investors New homes / Existing homes / Serviced residences
12 million visits to the Group’s web platform and the nexity.fr website in 2018, some 11% looked at more than one business line More than 1 million of individual clients, > 30 million of data thanks to franchises networks
Developer – operator concept involving all the functions of the Individual Clients Solutions matching the specific housing situations: access to housing, energy works, unhealthy housing, social housing, intergenerational, senior, students, family shelters, …
Buy Invest Sell Manage Rent CUSTOMER EXPERIENCE
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Nexity / Investor presentation March 2019
More than 100 land opportunities provided to
developement teams
More than €200m of exepcted revenue from
reservations made by the distribution activities segment
21 residences built (~1.500 housing units) for Studéa
and Domitys
35% of condominium management mandates and 20% of rental
management mandates come from Residential Real Estate
70% of the buildings delivered by Nexity are kept for condominium
management 2 years after delivery (+10 pts improvement since 2 years)
47% win rate of rental management mandates on new homes
eligible to GSL (rent guarantee)
33 days on average for renting a Nexity new home eligible to GSL
(compared to 53 days on average in 2016)
More than 1,500 agencies and selling
points
More than 3 million of qualified
contacts in the Group’s database
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Nexity / Investor presentation March 2019
▪ Residential Real Estate – 19,609 new home reservations, +7% in volume, +10% in value – 12.4% market share* (compared to 10.9% in 2017) – Buisness potential: 53,602 units (+13% compared to 2017) ▪ Real Estate Services to Individuals – 897,000 units under management in property management for individuals (+0.8% vs 2017) – 25,000 housing units in serviced residences (Studéa + Domitys) ▪ Strong new home reservations thanks to multi products, multiservices and multi brand strategy ▪ Acquisition of Ægide-Domitys ▪ 11 new Domitys’ residences opened ▪ Reservations for new homes in France: continued market share gains for Nexity (up 3 percentage points) in a stable market (160,000 reservations expected in 2021)* ▪ Growth in the portfolio of units served by Nexity’s individual property management business ▪ Strong development in serviced residences ▪ Growth in market share in a new housing market (retail and bulk sales)* set to decline to around 145,000 units in 2019 ▪ Serviced residences (students and seniors): the Group expects to open over 20 new residences in 2019 while rejuvenating 1,000 student housing units
Margin rate
(as a % of revenue)
13.4%
Vs 13.2% in 2017
21.5%
Vs 21.9% in 2017
10.7%
Vs 10.2% in 2017
902 (25%) 810 (26%) 2,648 (75%) 2,350 (74%) 2017 2018
3,160 3,550 +12%
Residential Real Estate Real Estate Services to Individuals 239 (57%) 177 (43%) 194 (41%) 2017 284 (59%) 2018
477 417 +15%
REVENUE EBITDA
(In €m) (in €m)
# 2018 KEY FIGURES # 2018 HIGHLIGHTS # 2021 OBJECTIVES # 2019 OUTLOOK
Sources: Commissariat Général au Développement Durable (Sit@del2 basis for retail sales and Fédération des Promoteurs Immobiliers for bulk sales - Nexity’s estimate for 2019
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Nexity / Investor presentation March 2019
(in units)
2017 2016 2011 2012 2013 2018
107,500
2014 2015 2019e
168,600 157,600 153,900 121,100 105,900 108,600 125,600 ~145,000
+10%
~ -8%
Bulk slaes Retail sales
Low interests rates Demography Stability of fiscal incentives Increase in construction costs and land prices Municipal elections approaching Phasing out of fiscal schemes in non-supply constrained areas
An undersupplied market (building permits down 7% over one year at end 2018)
Sources: Commissariat Général au Développement Durable (Sit@del2 basis for retail sales and Fédération des Promoteurs Immobiliers for bulk sales - Nexity’s estimate for 2019
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Nexity / Investor presentation March 2019
New homes: successful multi products, multi services and multi brand strategy
NEXITY MARKET SHARE*
* Nexity market share calculated based on Nexity’s net reservations relative to ECLN market data for retail sales and Fédération des Promoteurs Immobiliers for bulk sales 9.6% 9.3% 9.6% 9.4% 2012 2011 2013 2014 9.3% 2015 10.3%
10.9%
2016 2017
12.4%
2018 +1.6 pt
˃ New home reservations in France: +7% in volume and +10% in value (on a like-for-like basis, +4% in volume and +7% in value ) ˃ Individual investors: 67% are using Pinel
>
Increase in social housing reservations: 65% of reservations are social housing (+4% compared to 2017)
2017 (+45% on a like-for-like basis)
33%
32%
19,609
44%
2016
6% 19%
44% 5% 4% 17% 2017 36% 42% 18% 2018 15,051
18,351 +7%
+17% +1% +10%
˃ Unique product offering ˃ External growth: Edouard Denis, Primosud ˃ Creation of new subsidiaries and new products: Synonim, Domaines du Sud, Patrimoine et Valorisation, Complicity ˃ Partnerships: Nexity Partners
First-time buyers Individual investors Other home buyers Professional landlords
VOLUME
(in units, incl. E.Denis and Primosud from 2017, Ægide from 1 July 2018)
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Nexity / Investor presentation March 2019
Live in the sky… in a vertical village: Emblématik (Aubervilliers – Seine-Saint-Denis)
Useful, desirable, affordable, minimal and vegetal
Project manager: Castro Denissof Associés
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Nexity / Investor presentation March 2019
▪ 9 residences delivered ▪ 221 housing units connected
# 2018 KEY FIGURES
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Nexity / Investor presentation March 2019
# NEXITY IS A COMMITTED OPERATOR THAT WORKS CLOSELY WITH PUBLIC BODIES
2018 : signing of a Green Deal with Plan Bâtiment Durable & signing of the Habiter Mieux Charter of commitment of Anah (National Agency for the Improvement of Habitat)
workshops (awareness, identification of targeted condominium, etc.) and have contributed to the emergence of new projects // more than 100 building representatives met during clients events, roundtables or dedicated meetings (around 500 co-owners)
# NEXITY OFFERS ITS CUSTOMERS A COMPREHENSIVE RANGE OF SERVICES
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Nexity / Investor presentation March 2019
15 25 36 41 52 59 72 83 2012 2011 2015 2013 2014 2016 2018 2017
+24% CAGR
(in number of residences)
Studéa residences
(in number of residences)
# Average occupancy rate of 97% for the 48 « cruising speed » residences* # Average age of residents: 78-85 years old # Average stay: 6 years # Average revenue generated per resident: €1,800 per month,of which 60% (~€1,000) in services and 40% (~€800) in rent # Pipeline of between 15 to 20 new residences to open every per year # A strong services component (~15 jobs per residence) # 122 residences managed at end 2018 # 2018 average occupancy rate of 93%
* Occupancy rate over than 90% at 1 January
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Nexity / Investor presentation March 2019
436 413 424 462 494 806 793 793 830 867
2014 2015 2016 2017
1,242
2018
1,206 1,217 1,292 1,361
+5%
2015
49,002
2017 2014 2016 2018
53,479 58,627 62,735 66,037
+5%
Century 21 Guy Hoquet l’Immobilier
CHANGE IN PROVISIONNAL SALES AGREEMENTS CHANGE IN NUMBER OF AGENCIES Century 21 ranked n°1 for the 4th year in a row WINNERS OF THE 2019 CLIENT RELATIONS PRIZE
(Les Echos Entreprise - HCG France)
Business activity
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Nexity / Investor presentation March 2019
NEXITY ENTRERPRISE SOLUTIONS
CLIENT DEVELOPMENT BROKERAGE PROPERTY MANAGEMENT OPERATIONS PLANNING BUSINESS FACTORY ADVISORY
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Nexity / Investor presentation March 2019
MEET INSPIRE BREAK FREE
Breakfasts, aperitif drink, conferences, events,… Creating opportunities to meet is part of Morning Coworking ! From redesigned school to design open space, each place in Morning is unique and figured out to boost creativity. Morning Coworking offers spaces without long- term commitment, to remain free and agile at any time.
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Nexity / Investor presentation March 2019
▪ Commercial Real Estate – €349m order intake – Business potential: €2.8bn (+80% compared to 2017) ▪ Real Estate Services to Companies – 18.6 million sq.m of floor areas under management of which 8 million sq.m in technical management only ▪ Creation of Nexity Enterprise Solutions ▪ Offices : 126,000 sq.m delivered on 15 operations ▪ Property management : services agreement with Enedis and EDF (2 million sq.m) ▪ Major operation in La Garenne-Colombes (Hauts- de-Seine) (Engie eco-campus) ▪ Order intake volume at least equal to 2018 ▪ Continued growth of new service offerings (Intent, Accessite, etc.) ▪ Commercial Real Estate order intake: about €650 million on average per year
REVENUE EBITDA
Margin rate
(as a % of revenue)
12.3%
Vs 16.5% in 2017
10.0%
Vs 7.8% in 2017
12.7%
Vs 18.1% in 2017
343 (84%) 69 (12%) 2017 63 (16%) 512 (88%) 2018
407 581 +43%
2017 62 (93%) 2018 5 (7%) 65 (90%) 7 (10%)
67 72 +7%
Commercial Real Estate Real Estate Services to Companies
(In €m) (in €m)
# 2018 KEY FIGURES # 2018 HIGHLIGHTS # 2021 OBJECTIVES # 2019 OUTLOOK
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Nexity / Investor presentation March 2019
> Major operation in La Garenne-Colombes (92) future eco-campus of Engie on a 9-hectares plot – Largest private project in Greater Paris
739 (48%) 811 (52%) 3.9 YEARS OF ACTIVITY
Paris region Rest of France
€1,551m
+80% 2,021 (72%) 775 (28%)
€2,796m
5.5 YEARS OF ACTIVITY
AT 31 DECEMBER 2018
(in €m)
AT 31 DECEMBER 2017
(in €m)
* Corresponds to the total volume of potential business at any given moment, expressed as estimated revenue excluding VAT, within future projects validated by the Nexity’s Investment Committee, under options or purchased land, in all structuring phases, including urban regeneration business (Villes & Projets). This business potential includes Nexity’s current supply for sale as well as its future supply
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Nexity / Investor presentation March 2019
OFFICES TAILORED TO CLIENT REQUIREMENTS CLICHY (HAUTS-DE-SEINE) ~40,000 SQ.M DELIVERED IN SEPTEMBER 2018 FOR EDF USER CLIENT
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Nexity / Investor presentation March 2019
▪ Portfolio*: ~635,000 sq.m, +8% ▪ Land bank: €130 million**
▪ Major operation in La Garenne-Colombes (Hauts-de-Seine) (Engie eco-campus) ▪ Réinventer Paris 2: Aérog’Art in the center of Paris (Invalides), joint-venture with Emerige ▪ Initiation of the largest private sector project in Greater Paris in La Garenne-Colombes (Hauts-de-Seine) ▪ Reinforcement of our market position as the 1st private town planner in France and increase in land bank investments
# 2018 KEY FIGURES # 2018 HIGHLIGHTS # 2021 OBJECTIVES # 2019 OUTLOOK AÉROG’ART
Restoration project of the largest Air France sales agency Architect: Dominique Perrault – DP Architecture Réinventer Paris 2 joint-venture with Emerige ~7,500 sq.m including an arts and craft gallery, a children museum, a food court and a restaurant
* Floor areas are provided for information purposes only and may be subject to adjustment once administrative authorisations have been obtained ** Represents the amount of projects in France for which the Group has acquired development rights, before obtaining a building permit and in some cases planning permissions, expressed as an amount recognised within the working capital requirement
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Nexity / Investor presentation March 2019
La Garenne-Colombes (Hauts-de-Seine) – Projected schedule
13 July 2018 Land acquisition 2019 Building permits preparation Permissions obtention sales launch of the campus 2020 Start of construction works 2021 2022 2023 Scheduled delivery of the Engie campus 2024
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Nexity / Investor presentation March 2019
Estimated number of homes required per year by 2040
(in thousands of units – excl. Bulk sales)
Obsolescence
2040 according to Nexity
Regional population shifts Plugging the construction shortfall Growth in number
DEMAND FOR AT LEAST 400,000 NEW HOMES PER YEAR BY 2040, VS AN AVERAGE OF 337,000 HOMES BUILT BETWEEN 2012 AND 2018
137 128 104 103 113 135 120 101 117 107 109 124 113 109 84 85 83 100 127 130 128 2014 357 2013 2012 2016 2015 2017 2018 322 330 294 312 364 378
Developers (1) Sales Social housing (2) Financing authorisations Single-family houses (3) Sales
400-450k units
(Nexity estimate)
(1) Gross sales by developers, i.e. individual and collective housing taken together - source: Commissariat Général au Développement Durable (2) Number of homes financed, outside ANRU urban regeneration areas - source: Ministère de l’égalité des territoires et du logement – Bilan deslogements aidés 2012-2017 – Ministère de l’égalité des territoires et du logement for 2018
(3) Contracts for the construction of detached and semi-detached houses - source: Union des Maisons Françaises 2012 – LCA/FFB for 2017 et 20184 million
people in substandard housing and 12.1 million people in fragile situations(1)
32 million
households by 2030, +4 million compared to 2015 (2)
42%
13 million (2)
(1) Annual reportl #24 de la Fondation Abbé Pierre – Feb. 2019 (2) Observatoire et statistiques n°135 – August 2012 (3) Insee – DGFIP-Cnaf-Cnav-CCMSA, fichier localisé social et fiscal (4) In 2017 – source : L’économie française, 2018 edition - Insee Références25%
share of housing spendings in households consumption expenditure in France (4)
€22,680
Average annual income (median) needed to buy a 2 room apartment of 43 sq.m in France(3)
€18,972
Average annual income (median) of a single adult in France, ie €1,581 / month(3)
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Nexity / Investor presentation March 2019
// Economic uncertainties
// Clear regulatory outlook
free loan frameworks extended in supply- constrained areas until year-end 2021
will not push prices lower
// GDP growth trend of ~1.5% in 2019
Monthly Consumer confidence - synthetic index
// Clear operational outlook
demographics, urbanisation, new uses, CSR
Sources: Observatoire Crédit Logement and Finance Active 5.07% 2010 2008 2012 2009
1.44%
2016 2011 2014 2013 2.20% 2015 2017 1.51% 0.80% Q1 2018 Q2 2018 Q3 2018 0.75% Q4 2018 Mortgage rates (average during the last month of the period) TEC 10 index (average 10-yield over the period) Source: INSEE – data corrected for seasonal variations
108 80 108 87
2008 2016 2007 2014 2010 2013 2009 2017 2011 2012 2015 2018
Average: 91
// A favourable interest-rate environment
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Nexity / Investor presentation March 2019
INDIVIDUAL CLIENTS
>>>>>>>>>>>>>>>>>>>>>>>
# New homes in France: Continued growth in Nexity’s market share, in a market that should see slight contraction at 145.000 units (2) # Serviced residences (students and seniors): more than 20 openings of new residences and rejuvenating 1,000 students housing units # Revenue and EBITDA expected to grow by at least 5% # Dividend per share: €2.50 payable in 2019(1)
COMMERCIAL CLIENTS
>>>>>>>>>>>>>>>>>>>>>>
# Commercial Real Estate order intake: at least equal to 2018 # Continued growth of new services offerings (Intent, Accessite, etc.)
(1) Pending approval of the Shareholders’ Meeting (2) Retail sales published by ECLN + bulk sales published by Fédération des Promoteurs Immobiliers (FPI)
LOCAL AUTHORITY CLIENTS
>>>>>>>>>>>>>>>>>>>>>>>
# Initiation of the largest private project in Greater Paris in La Garenne-Colombes (92)
FINANCIAL PERFORMANCE >>>>>>>>>>>>>>>>>
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Nexity / Investor presentation March 2019
Real estate development Backlog* at 31 December 2018
In €m, excl. VAT, International, Edouard Denis, Primosud and Ægide IFRS 15 standard applied from January 2018 (2017 has been restated accordingly)
383 486 449 487 544 562 465
2,834 2,702 2,806 2,869
3,464
3,283
308
reported
3,526
restated
4,161
3,293 3,085 3,355 4,008 3,991 4,469 4,754
4,191
+12%
17 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES
Residential Real Estate Commercial Real Estate
>
On a like-for-like basis, backlog stands at 4,223 M€ (+6%)
>
Ægide’s backlog (operations without Nexity) represents €246m at 31 December 2018
* Corresponds to the Group’s order backlog in terms of forecast revenue and number of months of development activities
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Nexity / Investor presentation March 2019
# Compound annual growth in revenue and EBITDA of 10% # Dividend per share of at least €2.50 (1) over the period of the plan
(1) Pending the decision of Nexity’s Board of Directors and approval of the Shareholders’ Meeting (2) Retail sales published by ECLN + bulk sales published by Fédération des Promoteurs Immobiliers (FPI)
5.3
2020e 2017 2018e 2019e 2021e
4.1 3.6
+10% CAGR
461 523 680
2017 2018 2020e 2019e 2021e
+10% CAGR
EBITDA REVENUE
In €bn
in €m
FINANCIAL PERFORMANCE >>>>>>>>>>>>>>>>> INDIVIDUAL CLIENTS >>>>>>>>>>>>>>>>>
# Reservations for new homes in France: continued market share gains for Nexity (up 3 percentage points) in a stable market (160,000 reservations expected in 2021) (2) # Growth in the portfolio of units served by Nexity’s individual property management business # Strong development in serviced residences
COMMERCIAL CLIENTS >>>>>>>>>>>>>>>>>
# Commercial Real Estate order intake: about €650 million on average per year over the period of the plan
LOCAL AUTHORITY CLIENTS >>>>>>>>>>>>>>>>>
# Reinforcement of our market position as the 1st private town planner in France and increase in land bank investments
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Nexity / Investor presentation March 2019
2020* 2019* 2017 2013 2016 2014 2015 2018 2021* ≥2.5 2022* ≥2.5 ≥2.5 2.5 2.0 2.0 2.0 2.2 2.4 2.5 Paid in:
* Pending the decision of Nexity’s Board of Directors and approval of the Shareholders’ Meeting
In € per share
Payout ratio (in % of EPS) :
79% ~100% 71%
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Nexity / Investor presentation March 2019
▪ Women make up 31% of Nexity’s Club 100 members ▪ 79% of employees have an annual interview with their manager ▪
▪ 90% of (residential) development projects with a low-carbon assessment study at design phase
▪ Commitment to housing for the disadvantaged ▪ Target of 1,000 housing units a year at cruising speed (building permits for at least 500 housing units in 2019) ▪ Action on rental intermediation: first social tenancy agreement signed ▪ 14 external stakeholders ▪ Set-up in 2018 ▪ Advisory proposal-making body met for the first time in November 2018
# 2018 KEY CSR INDICATORS # NEXITY NON PROFIT # STAKEHOLDER COMMITTEE
Non-financial ratings
▪ Reduce Greenhouse gas emissions by 2030 by: ▪
▪
▪
▪ Breakdown of targets to each Client : energy renovation, circular economy, responsible procurement
# CSR TARGETS FOR 2020-2030
46
Nexity / Investor presentation March 2019
6.4% 3.2% 5.4% 13.7% 70.3%
(1) o/w treasury shares: 555,025 shares (1.0%) (2) New Port: 7.5% (3) o/w FCPE (Nexity Actions and Nexity Levier 2017): 2.7%
56,129724 shares(1)
31 DECEMBER 2018
FCPE and other employees(3)
belonging to the concert group Crédit Mutuel Arkéa Crédit Agricole Assurances 5.4% 13.7% 3.2% Free float 6.4% 70.3% Concert group 19.1%
> 1st share buyback programme made between 4 October and 20 November 2018: 450K shares bought back at an average price of €44, representing €20m, in the proportion necessary to offset the dilution potentially caused by the vesting of free shares with the Group’s employees (May 2019) > 2nd share buyback programme between 14 January and 15 February 2019: 206,129 shares bought back at an average price of €41, representing €8.5m, opportunistic approach in order to take advantage of market conditions and for use in connection with future vesting of free share plans > New Port stake grew from 6.1% to 7.5% between October and December 2018
48
Nexity / Investor presentation March 2019
> Financials (IFRS standards) > Business activity
H2 2018 FY 2018 Revenue €175m €331m
€83m €156m
€91m €175m
EBITDA €35m €57m
€9m €15m
€30m €49m
Goodwill €289m IFRS 16 lease payments €474m Debt before IFRS 16 €73m
Total Ægide
FY FY 2018 2018 New home reservations in volume 856 units 549 units 1,405 units 2,456 units New home reservations in value €162.0m €116.4m €278.4m €488.0m Supply for sale
232 units Business potential
Backlog
DEVELOPMENT
H1 2018 H2 2018
SERVICED RESIDENCES
FY 2017 FY 2018 Number of residences 72 83
34 48 Average occupancy rate of "cruising-speed" residences 99% 97%
Units under management 8,438 9,805
+16% vs 2017
49
Nexity / Investor presentation March 2019
New reporting standard: IFRS 15 Revenue from contracts with customers
# Percentage-of-completion principle maintained for real estate development activities in France, but percentage of completion must be calculated based on all inventoriable costs (including land)
FASTER RECOGNITION OF REVENUE AND MARGINS WITH CORRESPONDING DECREASE IN THE BACKLOG OPERATING PROFIT MORE CLOSELY CORRELATED TO FLUCTUATIONS IN BUSINESS ACTIVITY
50
Nexity / Investor presentation March 2019
Source : Commissariat Général au Développement Durable (CGDD)
Jan.19
459,418 490,821
417,131
437,250
>
Building permits down 2.2% over the last three months
>
Housing starts down 2.3% over the last three months
INDIVIDUAL CLIENTS
Residential Real Estate
BUILDING PERMITS
(in units, 12 months rolling)
HOUSING STARTS
(in units, 12 months rolling)
51
Nexity / Investor presentation March 2019
100,000 80,000 120,000 40,000 20,000 140,000 60,000 160,000 2001 Q1 2008 Q1 2014 Q1
Source : Commissariat Général au Développement Durable (CGDD)
(in units, quarterly basis)
Municipal elections
INDIVIDUAL CLIENTS
Residential Real Estate
52
Nexity / Investor presentation March 2019
Subdivision New homes, o/w
1,924
International 292 479 420 365 2,202 2,601 19,609 11,741 2016 2015 2,518 15,893 18,351 2,063 2017 549 2018
18,890 14,235 21,372 22,037
+6.9%
+3.1%
42 79 51 32
3,218
166 2016 2,285
3,817
2015 2017 197 2,942 202 3,564 169 3,915 116 2018
2,493 4,116
+9.9%
+7.8%
VOLUME
(in units, incl. E.Denis and Primosud from 2017, Ægide from 1 July 2018)
VALUE
(in €m incl. VAT TTC, incl. E.Denis and Primosud from 2017, Ægide from 1 July 2018)
>
New home reservations in France are up 7% in volume and 10% in value (on a like-for-like basis, +4% in volume and +7% in value)
>
Expected revenue from reservations (incl. VAT): growth in retail sales was more buoyant in the Paris region (with a higher ASP)
>
Subdivisions reservations are down 21% in volume and 16% in value, due to the PTZ scheme phasing out in non-supply constrained areas
Ægide
INDIVIDUAL CLIENTS
Residential Real Estate
53
Nexity / Investor presentation March 2019
Q4
4,634
Q1 Q1 Q4 Q2 Q1 Q2 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q2 Q4 Q3 Q1 Q2 Q3 Q4 Q3
4,288
Q4
3,506
Q3 Q1 Q4
6,600
Q2 Q3
3,052 3,581 3,653 4,237 5,201 3,618 4,821 5,736 4,757 +3% +8%
+15%
2016 2012 2013 2014 2015 2017
NEW HOME RESERVATIONS IN FRANCE
(in units, incl. E.Denis and Primosud from 2017, Ægide from 1 July 2018) 2018
> Q4 2018: +15% in volume and +17% in value (on a like-for-like basis: +12% in volume and +13% in value)
INDIVIDUAL CLIENTS
Residential Real Estate
54
Nexity / Investor presentation March 2019
˃ Individual investors: 67% are using Pinel
VOLUME
(in units, incl. E.Denis and Primosud from 2017, Ægide from 1 July 2018)
44%
18,351
33%
19%
19,609
32% 6%
44% 2016 5% 17% 2017 36% 42% 18% 4% 2018 15,051
+7%
First-time buyers Individual investors Other home buyers Professional landlords +17% +1% +10%
165 485 609 743 2,815 2014 2,949 651 895 2015 663 716 3,632 2016 4,433 2018 2017
6,071
4,606 1,471 1,029
4,780 3,765 4,140 7,106 +17%
Intermediate housing (CDC habitat, FLI...) Social housing Unregulated housing
non social
BREAKDOWN OF RESERVATIONS TO PROFESSIONAL LANDLORDS
(in units, incl. E.Denis and Primosud from 2017, Ægide from 1 July 2018)
>
Increase in social housing reservations: +4% compared to 2017
>
Strong increase in non social housing reservations: +53% compared to 2017 (+45% on a like-for-like basis)
>
Framework agreements renewed / signed with CDC Habitat and in’li in 2018
INDIVIDUAL CLIENTS
Residential Real Estate
55
Nexity / Investor presentation March 2019
Paris region Rest of France
>
Retail sales: +5% in Paris region, stable for the rest of France, non supply-constrained areas, especially B2 zone, have suffered from the Pinel scheme phasing out
>
Bulk sakes: -1% in Paris region, +33% for the rest of France 37% 39% 37% 63%
2016
61%
2017
63%
2018
15,051 18,351 19,609 +7% 54% 46% 44% 2,805
2017
55% 45%
2016
56%
2018
3,915 3,564 +10% +2% +10% +5% +14%
INDIVIDUAL CLIENTS
Residential Real Estate
VOLUME
(in units, incl. E.Denis and Primosud from 2017, Ægide from 1 July 2018)
VALUE
(in €m incl. VAT TTC, incl. E.Denis and Primosud from 2017, Ægide from 1 July 2018)
56
Nexity / Investor presentation March 2019
7,524 5,390 13,976
2015 2016
2,925 5,768 21,607
2017
7,977 3,535 4,331 3,742
2018
12,938 19,585
Q3 Q2 Q1 Q4
NUMBER OF UNITS LAUNCHED
(in units, incl. E.Denis and Primosud from 2017, Ægide from 1 July 2018)
>
Q4 2018: 38% more units launched vs Q4 2017 – catch-up effect after a slower first nine months
>
19,342 launches on a like-for-like basis (-10%)
>
INDIVIDUAL CLIENTS
Residential Real Estate
57
Nexity / Investor presentation March 2019
184 192 197 257 261 267 250 257 265
214 224
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
218
AVERAGE PRICE
(in thousand of euros, incl. E.Denis and Primosud from2017, excl. PERL, iSelection, Ægide, International and bulk sales) Rest of France: +2.4% Paris region: +2.2% Paris region excl. Paris: +3.1%
France: +2.7%
RETAIL SALES 2017 2018 Variation Average home price incl. VAT (sq.m.)
3,934 4,045 +2.8%
Average surface area per home (sq.m.)
55.4 55.3
Average price incl. VAT per home (€k)
218.0 223.8 +2.7%
INDIVIDUAL CLIENTS
Residential Real Estate
58
Nexity / Investor presentation March 2019
# New construction processes # BIM # Mass purchasing # Industrialisation # Innovative marketing methods # Digitisation # Operating efficiency
22% 50% 8% 8% 7% 4% 1% 2018 100%
* Average cost of programmes
Borrowing costs Marketing & Advertising Professional fees & insurance Internal fixed costs Construction costs Roads, utilities Development rights
# Positioning in large projects # Local authority partnerships – calls for projects # Land bank investment vehicle
Medium-term development Nexity’s responses Costs structure
INDIVIDUAL CLIENTS
Residential Real Estate
59
Nexity / Investor presentation March 2019
6,438
67% 46%
3,663
2008 2010 2018 2012 2013 2017 2014 2015 2011 2016
2%
28%
2%
31%
2%
2009 52%
6,988 8,651 3,542 4,202 4,293 5,058 5,313 6,773 9,005
70%
+4%
CURENT SUPPLY FOR SALE
(in units, excl. International, and incl. iSelection and PERL from2015, E.Denis from 2016, Primosud from 2017 and Ægide from 1 July 2018) New homes in project phase Completed new homes New homes under construction Ægide (operations without Nexity)
>
On a like-for-like basis, supply for sale stands at 8,807 units (+2%)
>
Ægide’s supply for sale (operations without Nexity) represents 198 units in 2018 (98% in the rest of France)
>
Marketing period*: 5.5 months in 2018 (vs. 5.7 in 2017)
* Délai d’écoulement : offre commerciale / réservations des 12 derniers mois, exprimé en mois
INDIVIDUAL CLIENTS
Residential Real Estate
60
Nexity / Investor presentation March 2019
2.7 YEARS OF ACTIVITY
2009 72% 2008 2010
19,057
2011 2013 2014 2016 2015 46% 54% 2012 44% 56% 2018 28%
34,453 23,941 22,824 21,285 23,143 23,100 24,832 41,813 47,560 53,602
2017
+13%
Rest of France Paris region Ægide (operations without Nexity) (in units, excl. International and incl.iSelection, PERL and Villes & Projets from 2015, E.Denis from 2016, Primosud from 2017 and Ægide from 1 July 2018)
>
On a like-for-like basis, business potential stands at 51,040 units (+7%)
>
Ægide’s business potentiel (operations without Nexity) represents 2,562 units in 2018 (75% in the rest of France)
INDIVIDUAL CLIENTS
Residential Real Estate
61
Nexity / Investor presentation March 2019
2016 726 172
898
2017 721 168
890
2018 721 175
897
+0.8%*
* 2018 churn rate on a like-for-like basis: : -1.4% (-1.1% in 2017)
436 413 424 462 494 806 793 793 830 867
2014
1,206
2016 2015
1,361
2017 2018
1,242 1,217 1,292
+5%
Century 21 Guy Hoquet l’Immobilier
>
Increase in condominium management contracts retention rate
>
Positive impact of Ægide-Domitys in rental management
INDIVIDUAL CLIENTS
Real Estate Services to Individuals
Condominium management Rental management
>
Provisional sales agreements signed by franchised agencies are up 5% compared to end 2017
PROPERTY MANAGEMENT TO INDIVIDUALS Units under management (in thousands of units) FRANCHISES
>
Change in number of agencies:
DISTRIBUTION ACTIVITIES - iSelection and PERL
(in units) 1,919 1,270 187
2015
87 186
2016
2,116
2017
115
1,457
2,186
2018
2,105 2,301 2,203 +4%
iSelection - distribution on behalf of third-party PERL - Division of ownership in existing homes
62
Nexity / Investor presentation March 2019
Sources : CBRE Marketview France Investissements et Bureaux Île-de-France – T4 2018 Q1 Q4 Q2 Q3 5 10 15 20 25 30 35 2008 2006 2013 2007 2009 2010 2011 2012 2014 2015 2016 2017 2018
30.5
2006-2018 average: €20.4bn
> Offices off-plan sales: €4bn in 2018, slightly down from last year, of which 35% « en blanc » (speculative deals) > Take-up in Paris region: -5% on 1 year at 2.5 million sq.m in 2018 (of which 642,000 sq.m in Q4 2018)
4,50% 3,00% 0,80% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 06 07 08 09 10 11 12 13 14 15 16 17 18
Class A logistics Paris CBD office space OAT TEC 10
COMMERCIAL CLIENTS
Commercial Real Estate
COMPARISON OF PRIME REAL ESTATE AND GOVERNMENT BOND YIELDS COMMERCIAL REAL ESTATE INVESTMENTS IN FRANCE
(in € billion)
63
Nexity / Investor presentation March 2019
544 190 403 356
151 183
400
250 166 2013 2018 Target 2016 2014 2017 2015 2018
402 349
Paris region Rest of France
465 308
31 Dec. 2017 restated
Additional work and other adjustments
+6
2018 order intake
+349
31 Dec. 2018
2018 revenue
> Backlog is equivalent to 7 months’ revenue from development activities (Commercial Real Estate revenue basis, 12 months rolling period) > Backlog decreases as a result of relatively weak order intake during the financial year
COMMERCIAL CLIENTS
Commercial Real Estate
ORDER INTAKE
(in €m)
BACKLOG
(in €m)
64
Nexity / Investor presentation March 2019
Urban regeneration
VILLENAVE-D’ORNON (33) Under construction ASNIÈRES (92)- 60,300 sq.m
Grand Paris
LE BLANC-MESNIL (93) – 20,500 sq.m
Grand Paris
BRY-SUR-MARNE / VILLIERS-SUR- MARNE (94) – 140,000 sq.m
Grand Paris
VERSAILLES-CHANTIERS (78) Under construction
Grand Paris
SAINT-OUEN (93) – 75,500 sq.m
Grand Paris
MONTREUIL ACACIAS (93) 48,200 sq.m (Nexity’s part)
Grand Paris
BORDEAUX BELVÉDÈRE (33) 70,500 sq.m (Nexity’s part)
~635,000 sq.m
Portfolio at 31 December 2018*
(+8% compared to 31 Dec. 2017)
€130m Land Bank**
at 31 December 2018
SOLLIÈS-PONT (83) – 36,700 sq.m
Entrée 2018
SAINT-PRIEST (69) – 85,500 sq.m
* Floor areas are provided for information purposes only and may be subject to adjustment once administrative authorisations have been obtained ** Represents the amount of projects in France for which the Group has acquired development rights, before obtaining a building permit and in some cases planning permissions, expressed as an amount recognised within the working capital requirement
LA GARENNE-COLOMBES (92) 98,000 m² (Nexity’s part)
Grand Paris
Entrée 2018
LOCAL AUTHORITY CLIENTS
Villes & Projets
65
Nexity / Investor presentation March 2019
321 353 61 64
338
2017 retraité 2018
373 +10.3%
9.5% 10.1% 10.0% 14.9% 11.0%
9.0%
2018 Individual Clients Commercial Clients Other activities 2017 restated 2018 2017 restated 2018 2017 restated
+3 M€ +33 M€
>
€382m on a like-for-like basis; margin rate at 9.6%, similar to 2017 level
CURRENT OPERATING PROFIT
(in €m and margin rate in %)
CURRENT OPERATING MARGIN
(in %) Individual Clients Commercial Clients Group
66
Nexity / Investor presentation March 2019
(in €m)
523 373
2018 EBITDA
Provision charges (-) / reversals (+) de provisions
IFRS 16 amortisation
+5
Depreciation, amortisation and impairment
Share-based payments Borrowing costs directly attributable to property developments, transferred from inventory (IAS 23)
2018 Current
>
Ægide-Domitys IFRS 16 amortisation: 35 M€
67
Nexity / Investor presentation March 2019
41
164 (1)
5
97 436(3) 456(2) 351(4)
Drawn at 31/12/2018 2019 2020 2021 2022 2023 2024 Corporate borrowings Project related loans
(1) Including €25m of bonds issued in May 2014 (2) Including €146m of bonds issued in May 2014 (3) €270m of convertible bonds (incl. shareholders’ equity) issued in May 2016 (maturity date 1 January 2023) + €30m of bonds issued un June 2017 (4) €121m of bonds issued in June 2017 / €200m of convertible bonds issued in March 2018
>25% of debt with maturity > 5 years >Average maturity: 3.7 years >Cost of financing (debt drawn down): 2.6% at end 2018 (2.9% in 2017)
2025
(in €m)
Tél. : +33 (0)1 85 55 12 12 19, rue de Vienne 75 008 Paris