NEXITY INVESTOR PRESENTATION MAY 2018 DISCLAIMER The information - - PowerPoint PPT Presentation
NEXITY INVESTOR PRESENTATION MAY 2018 DISCLAIMER The information - - PowerPoint PPT Presentation
NEXITY INVESTOR PRESENTATION MAY 2018 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,
NEXITY / PAGE 2 INVESTOR PRESENTATION - MAY 2018
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
- r correctness of the information or opinions contained herein. None of the Company, its shareholders, its advisors or
representatives nor any other person shall have any liability whatsoever for any loss arising from any use of this document
- r 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 were used to determine these objectives are subject to modification due to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks described in section 2 in the Document de Référence, 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.
DISCLAIMER
NEXITY / PAGE 3 INVESTOR PRESENTATION - MAY 2018
NEXITY’S EVOLVING BUSINESS MODEL
2004
One-product company (pure property developer)
2007
Property developer + Service provider
2012
Single brand: Integrated real estate operator
2017 Becoming a Real Estate Services Platform
Customer-centric organisation Provider of recurring and value-added services
Growth in all business lines ˃ Strong market positions ˃ Continuous improvement ˃ Growth initiatives Increased connectivity between business lines ˃ Cross-selling ˃ New packaged offerings Strong customer focus ˃ Aided by digital transformation ˃ Data-driven model
NEXITY / PAGE 4 INVESTOR PRESENTATION - MAY 2018
896
Kaufman & Broad
1,209
Altarea Cogedim Nexity
2,712 1,731
Bouygues Immobilier
2,995 1,391
Icade Vinci Immobilier
REVENUE (in €m, excl. VAT) EBIT MARGIN (as a % of revenue)
8.0%
6
8.2% 8.5%
5 3
7.2%
2
6.3%
Nexity
10.6%
4
Sources: company press releases of the sample (based on company-specific methods)
BUSINESS ACTIVITY
NEXITY: THE LEADING FRENCH REAL ESTATE DEVELOPER
FINANCIALS – Real Estate Development (residential + commercial)
* Based on an order intake of €3,065m excl. VAT released by Bouygues Immobilier, estimated at €3,550m incl. VAT by Nexity ** Icade Commercial Real Estate order intake not published
ORDER INTAKE (in €m, incl. VAT) (residential + commercial)
9,027
Nexity Bouygues Immobilier Altarea Cogedim Kaufman & Broad
15,199 11,189 21,372
Icade
5,776 6,630
Vinci Immobilier
NEW HOMES RESERVATIONS (in units)
Kaufman & Broad Altarea Cogedim
1,934
Icade**
1,083
Bouygues Immobilier*
3,709
Nexity
4,299 3,550
Vinci Immobilier
1,545
NEXITY / PAGE 5 INVESTOR PRESENTATION - MAY 2018
RESIDENTIAL REAL ESTATE MARKET SHARES (PRE-SALES)
63.0% 11.6%
NEXITY MARKET SHARE AT 31 DECEMBER 2017* MARKET SHARES OF THE LEADING PLAYERS IN THE FRENCH NEW HOME MARKET IN 2017*
New home reservation market source: Commissariat Général au Développement Durable (ECLN) * Market shares calculated by Nexity, based on ECLN latest figures ** Market shares at 31 December 2016 *** Including subdivisions and commercial premises (excluding international)
2017 14.1% 12.5% 2016 2015 9.7% 2006 8.6% 12.4% 12.1% 2009 2007 2008 2014 2012 11.5% 2010 11.8% 11.7% 10.9% 10.6% 2013 2011 8.8% 2005 7.6% +1.6 pt
NEXITY’S MARKET SHARE GROWTH*
20.1%
(17.0%**)
13.7%
(16.4%**)
18.1%
(15.7%**)
13.0%
(9.9%**)
7.8%
(6.9%**) Nexity 11.7% 14.1%
Vinci Immobilier (5.1%) Bouygues Immobilier*** Altarea Cogedim
8.6% 6.9% 54.3%
Kaufman & Broad Icade (4.3%) Others
NEXITY / PAGE 6 INVESTOR PRESENTATION - MAY 2018
A MANAGEMENT TEAM TO IMPLEMENT NEXITY’S STRATEGY
Individual Clients Commercial Clients Other activities Categories for financial communication:
Alain DININ
Chairman and CEO
Development of new homes
(Nexity, E. Denis, Primosud …)
Subdivisions
Commercial real estate development
Offices, warehouses, retail premises, hotels, etc.
Jean-Philippe RUGGIERI
Deputy Chief Executive Officer in charge of
INDIVIDUAL CLIENTS
International Group support functions (Finance, Legal, HR, Digital, etc.) Strategy and Innovation
Julien CARMONA
Deputy Chief Executive Officer in charge of
INTERNAL CLIENTS Property management and advisory services for commercial real estate
Villes & Projets
Urban planning, project management for urban regeneration and smart city development
Group support functions (Human Ressources)
Véronique BÉDAGUE
Deputy Managing Director in charge of
COMMERCIAL AND LOCAL AUTHORITY CLIENTS
Property management, Management of residences
(Studéa)
Franchise networks
(Century 21, Guy Hoquet)
Frédéric VERDAVAINE
Deputy Chief Executive Officer in charge of
INDIVIDUAL CLIENTS
Distribution activities
(PERL, iSelection,…)
NEXITY / PAGE 7 INVESTOR PRESENTATION - MAY 2018
2016 14,235 2014 12,562 2015 2017
21,372
18,890 3,283 2014 3,293 2015 4,008 2017
4,754
2016 3,073 2015 2017
3,506
2016 2,632 2014 3,057
184 220 266 321
2015 7.2% 8.7% 7.0% 2017
9.1%
2016 2014
+33%
vs 2014
+70%
vs 2014
+74%
vs 2014
+45%
vs 2014
+2.1 pts
vs 2014
NEXITY KEY FIGURES (2014-2017)*
* According to IFRS with joint ventures proportionately consolidated
GROUP REVENUE (€m) CURRENT OPERATING PROFIT (€m) AND MARGIN RESIDENTIAL NEW HOME RESERVATIONS (in volume) DEVELOPMENT BACKLOG (€m)
NEXITY / PAGE 8 INVESTOR PRESENTATION - MAY 2018
2017 TARGETS(1) EXCEDEED
Growth in a French market expected slightly up, market share increase of more than 1pt
> €350m Up ~10%
2017 Guidance(2)
RÉVISED
REVENUE €3.5 bn
+14%
COMMERCIAL REAL ESTATE ORDER INTAKE
€402m
NEW HOME RESERVATIONS IN FRANCE
+15%
In volume
+21%
In value
CURRENT OPERATING PROFIT
GROUP CURRENT OPERATING MARGIN
€321m 9.1%
+20%
+0.4 pt
DEVELOPMENT BACKLOG
€4.8 bn
+19%
EBITDA
€368m
+21%
NET DEBT
€343m
Gearing 21%
GROUP SHARE OF NET PROFIT
€186m
+33%
RESIDENTIAL MARKET SHARE +1.6 pt
14.1%
> €300m
(1) According to IFRS with joint ventures proportionately consolidated (2) Guidance announced on 22 February 2017, partially revised up on October 2017
NEXITY / PAGE 9 INVESTOR PRESENTATION - MAY 2018
Q1 2018 KEY FIGURES (1)
(1) According to IFRS with joint ventures proportionately consolidated – After new segmentation and application of new reporting standards (2) Guidance announced on 20 February 2018
+4% vs Q1 17 €688m FINANCIALS INDIVIDUAL CLIENTS COMMERCIAL CLIENTS LOCAL AUTHORITY CLIENTS > Revenue: > Revenue: +3.2%
in volume
> New home reservations in France: +9.2%
in value
887,000 units
- 0.2%
> Services to Individuals, units under management: > Revenue: > Order intake: > Services to companies, surface under management: €12m 11.2 million sq.m
- 0.5%
> Business potential: €2.4bn ~580,000 sq.m
- 1.5%
> Villes & Projets portfolio: 2018 GUIDANCE (2) ▪ Revenue and EBITDA: growth by about ~10% ▪ New home reservations in France: continued market growth in Nexity’s market share in a French market for new homes that should see slight contraction while remaining at a high level (120,000/125,000 reservations expected in 2018) ▪ Commercial real estate order intake: €400m +1% vs 2017 €4.0bn > Backlog: +7% vs Q1 17 €603m
- 12% vs Q1 17
€85m
vs 2017 vs 2017 vs 2017
> Business potential: +4% 49,581 units
vs 2017
+54% vs 2017
1.
MARKETS AND BUSINESS ACTIVITY Q1 2018
NEXITY / PAGE 11 INVESTOR PRESENTATION - MAY 2018
POPULATION DYNAMICS
POPULATION GROWTH AND HOUSEHOLD STRUCTURE
NUMBER OF HOUSEHOLDS, Metropolitain France(1), (in millions)
Between now and 2040, 6 million more households in France
62% of small size households +9%
Single people 9,847,917
+3%
Childless couple 7,486,338
- 1%
Couple with children 7,449,539 Single-parent family 2,534,339 Other households* 726,236
+3% +10%
BETWEEN 2009 AND 2014 BETWEEN NOW AND 2040
Demand for new homes in the range of 400,000 units per year until 2040(2), compared to 267,000 dwellings produced in 2014(3) Single people contributed to 67% of household growth
* Other households consist of persons who are not family members and live in a household of at least two persons, regardless of the arrangement (colocation, subletting, accommodation of one by the other, etc.). They can have an extended family link (brother, sister, grandparents ...) or no family link (friend, roommate ...)
22 27 28 32 34
1990 2010 2014 2020e 2030e 2040e
+6m
30
(1) Source: INSEE 2010 and 2012 (2) Excluding the impact of internal migration, which is not quantified (3) Source: Commissariat Général au Développement Durable, Chiffres et statistiques 601, logements neufs
NEXITY / PAGE 12 INVESTOR PRESENTATION - MAY 2018
ROBUST MACROECONOMIC CONTEXT
Sources: Observatoire Crédit Logement et Finance Active
MORTGAGE RATES
(all markets, excl. insurance, last month
- f the quarter, average)
2013 2014 2012 2011 2010 2.20% 2016 2009 2008 5.07% 2015 1.51%
1.48% 0.82%
Q1 2018 2017 0.80% TEC 10 (taux moyen sur la période) taux de crédit immobilier
Source: INSEE
100 104 108 80 108
2014 2010 2013 2012
- Mar. - 18
2015 2016 2011 2009 2017 2008 2007
MONTHLY CONSUMER CONFIDENCE SURVEY – SYNTHETIC INDEX (data corrected for seasonal variations) Average: 91 HOUSEHOLDS SOLVENCY – SYNTHETIC INDEX (base 100 In 2001 – whole market) BUSINESS CONFIDENCE – SYNTHETIC INDEX (in France, all sectors)
Source: Observatoire Crédit Logement Source: INSEE – Informations rapides du 22 février 2018
102
2012 2017 2016 2015 Q1 2018 2014 2013 2011 2008 2010 2007 2009
Average: 101
109
2014 2017 2016 2010 2009 2015 Q1 2018 2013 2012 2011 2008 2007
Average: 96
NEXITY / PAGE 13 INVESTOR PRESENTATION - MAY 2018
FRENCH RESIDENTIAL MARKET
Source: Commissariat Général au Développement Durable (CGDD)
BUILDING PERMITS
(in number of units, 12 months rolling)
HOUSING STARTS
(in number of units, 12 months rolling)
+3.7%
- Mar. 16
478,590 496,300
- Mar. 18
- Mar. 17
+9.2%
- Mar. 16
- Mar. 18
- Mar. 17
425,800 389,930
NEXITY / PAGE 14 INVESTOR PRESENTATION - MAY 2018
NEW HOME RESERVATION MARKET IN FRANCE (DEVELOPERS)
DEVELOPERS’ NEW HOME RESERVATIONS (in units)
13% 44%
+2%
120,000- 125,000 130,000 2017 14%
+26%
2018e* 42% 44% 2016 127,000 42% 2015 100,400 99,100 2013 84,200 2009 2012 2011 85,300 2014 83,400 2010 109,000 2006 2008 102,000 122,500 123,700 32% 75,700 2007 28% 39% Average 2006-2017: 103,500
Sources: Commissariat Général au Développement Durable (Sit@del2 basis) - New figures following the 2017 recast of the Enquête sur la commercialisation des logements neufs (ECLN, a French survey of new home sales) now called ECLN2 published in May 2017
B1 zones A, Abis zones B2, C zones Supply-constrained areas
* Nexity’s estimation for 2018
NEXITY / PAGE 15 INVESTOR PRESENTATION - MAY 2018
FRANCE’S 2018 HOUSING BILL (ELAN) – MAIN PROPOSALS
Help free up land – public land in particular – and revitalise urban planning projects to produce more buildable land
> Urban planning partnership project (PPA) > Major urban planning projects (GOU): tool for the operational implementation of a PPA
Building permits
> Appeals processing time shortened to 10 months, compared with an average 18 to 24 months today
Switch from “accessible” to “adaptable” housing
> Only 10% of apartment blocks accessible to people with disabilities; other types of homes should be “adaptable”
Simplified process to transform offices into homes
> Bonus building permission of 10% (additional buildable area) > Possible exemption from local zoning plan (PLU) > New “medium-height” building category (38 to 50 metres high)
Reform of the social housing sector
> Requirement for social housing operators with fewer than 15,000 homes to join a social housing body within 3 years > Simplified selling process for social housing: target of 40,000 sales per year, with each home sold financing the construction of 2 to 3 new homes > Social housing operators more free to set rent > Standardisation of the “ratings” system attributing points to housing candidates
Rent control
> Possible extension of the system for cities in supply-constrained areas
“Job mobility” lease refocused on employment target
> 1 to 10 months, non-renewable – No security deposit for the tenant – and Visale guarantee to cover any unpaid rent or fees
Improve living conditions
> Doubled amount allocated to the new national programme for urban renovation (NPNRU) > Energy efficiency renovation in social housing by 2022 > Further digitisation of the housing sector and faster integration of smart homes > Measures against substandard housing
Tourist rentals
> Stricter controls and penalties (new 120-day legal limit on renting out one’s main residence for tourism purposes)
> Bill reviewed by French MPs starting late May 2018, with the aim of passing it this summer
NEXITY / PAGE 16 INVESTOR PRESENTATION - MAY 2018
NEXITY NEW HOME RESERVATIONS
Subdivision New homes
10,365 1,924
International 321 417 479 37 73 14 40 339 Q1 2018
3,997
- 0.6%
3,437 4,022
3,506 Q1 2015
2,522
2,187 Q1 2017 Q1 2016 2,947 3,618 +3% VOLUME
(in units, including E.Denis and Primosud from 2017)
VALUE
(in €m, incl. VAT, including E.Denis and Primosud from 2017)
>
New home reservations in France are up 3% in volume and 9% in value (including VAT)
>
Subdivision reservations are down 29% in volume and 21% in value due to the gradual elimination of the PTZ scheme in non supply- constained areas
>
Positive pricing impact: increase in average selling price for private clients (+6.5%) largely due to a better product and geographic mix
415 536 655 715 9 13 2 4 +9%
747
35 Q1 2017
699 581
32 Q1 2015 Q1 2016
440
23
+6.9%
Q1 2018* 28
* The impact of the increase in VAT on social housing from 5.5% to 10% on reservations signed before 31 December 2017 at the previous lower rate is not included in the amount of reservations for Q1 2018. No reservations by professional landlords were withdrawn following this VAT increase. Backlog, which represents future revenue, is expressed exclusive of tax
NEXITY / PAGE 17 INVESTOR PRESENTATION - MAY 2018
NEXITY RESERVATIONS: QUARTERLY CHANGE
Q1 Q4 Q3
4,821
Q2 Q4
5,736
Q1
+3% 3,618 4,288
Q1 Q4 Q3 Q2 Q4 Q1 Q3 Q2 Q3 Q1 Q3 Q4 Q2 Q1 Q4 Q2 Q1 Q2 Q3
3,506
2016 2012 2013 2014 2015 NEW HOME RESERVATIONS IN FRANCE
(in units, including E.Denis and Primosud from 2017)
2017 2018
NEXITY / PAGE 18 INVESTOR PRESENTATION - MAY 2018
KEY CLIENT SEGMENTS PERFORMANCE
VOLUME
(in units, including E.Denis and Primosud from 2017)
+3%
Q1 2016
27%
8%
24% 7%
45% 25%
21% 29% 43% 5%
Q1 2018
3,506 46% 3,618
Q1 2017
2,947
22%
+20%
- 31%
- 4%
+11%
>
Investors benefiting from Pinel scheme represented around 28% of reservations
>
Increase in professional landlords reservations: +11% (1,042 units vs 938 in Q1 2017), decrease in social housing (-29%) more than compensated by non-social housing reservations
First-time buyers Individual investors (o/w 65% Pinel) Other home buyers Professional landlords (o/w 65% social Landlords)
NEXITY / PAGE 19 INVESTOR PRESENTATION - MAY 2018
+3.2%
Q1 2018
3,618 55% 45%
Q1 2017
3,506 61% 39%
Q1 2016
2,947 64% 36% 56% 55% 45%
Q1 2018
51% 49% 715 655
Q1 2017
+9.3%
Q1 2016
536 44% Paris region Rest of France
NEXITY RESERVATIONS IN FRANCE BY AREA
- 7%
- 3%
+24% +19%
>
Private clients reservations in Q1 2018 (excluding bulk sales): +12% in Paris region, -6% for the rest of France, non supply- constrained areas, especially B2 zone, have suffered from the Pinel scheme elimination
>
Bulk sales: +31% in Paris region, -10% for the rest of France VOLUME
(in units, including E.Denis and Primosud from 2017)
VALUE
(in €m, incl. VAT, including E.Denis and Primosud from 2017)
NEXITY / PAGE 20 INVESTOR PRESENTATION - MAY 2018
NEXITY NEW HOMES: PRICE TRENDS
194 191 189 184 275 264 255 257 269 259 248 250
231 220 217 214 Q1 2017 2017 2016 2014 2015 Q1 2018 2012 2013 2009 2011 2008 2010 AVERAGE PRICE
(in thousand of euros, excl. Iselection, PERL, International, and bulk sales) RETAIL SALES Q1 2017 Q1 2018 Change Average home price incl. VAT per sq.m.
3,816 3,980 +4.3%
Average surface area per home (sq.m.)
56.8 58.0 +2.1%
Average price incl. VAT per home (€k)
216.9 230.9 +6.5%
Rest of France: +2.6% Paris region: +7.8% Paris region
- excl. Paris: +8.3%
France: +6.5%
NEXITY / PAGE 21 INVESTOR PRESENTATION - MAY 2018
NEXITY NEW HOMES: SUPPLY FOR SALE
2016 Q1 2018
8,651 6,650
66%
2%
71%
8,135
2017 28% 70%
- 6%
27%
2%
Q1 2017 31%
3%
6,773
2%
3,542 3,663
2015 46% 52% 2013
4,293 5,313
2014 2012 2011
6,438
2010 2009
5,058 4,202
2008
6,988
in units, excl. International and bulk sales, and incl. Iselection and PERL from 2015, E. Denis and Primosud from 2016
>
Average marketing period*: 5.3 months in Q1 2018 (vs 5.7 months in 2017)
New homes in project phase New homes under construction Completed new homes
* Supply for sale divided by the number of new home reservations in France, 12 months rolling
NEXITY / PAGE 22 INVESTOR PRESENTATION - MAY 2018
2.7 YEARS OF ACTIVITY
BUSINESS POTENTIAL* FOR NEW HOMES
57% 43% Q1 2017 2017
49,581 41,813 42,474
Q1 2018 2016
+4%
2013
23,100
2011 2014
23,143
2010 2012
21,285
2015
23,941 24,832 34,453
28% 2008
19,057 47,560
2009
22,824
72% 54% 46%
in units, excl. International and incl. Iselection, PERL and Villes & Projets from 2015, E. Denis and Primosud from 2016
Paris region Rest of France
* Includes the Group’s current supply for sale, its future supply corresponding to project phases not yet marketed on acquired land, and projects not yet launched associated with land secured through options
NEXITY / PAGE 23 INVESTOR PRESENTATION - MAY 2018
REAL ESTATE SERVICES TO INDIVIDUALS
PROPERTY MANAGEMENT AND SERVICED RESIDENCES
2016 726 172
898
2017 721 168
890
Q1 2018 721 166
887
Condominium management Rental management
- 0.2%*
* Q1 2018 churn rate on a like-for-like basis: -0.2% (-1.1% at end 2017)
124
residences at 31 March 2018
95.4% average occupancy rate over the period
vs 94.3% in Q1 2017
15,300 units managed at 31 March 2018
PROPERTY MANAGEMENT FOR INDIVIDUALS (PMI) Units under management (in thousands) STUDÉA (student residences in France)
793 471 424 462 838 830
1,309
Q1 2018
+1%
2017
1,292
2016
1,217
FRANCHISES > Change in number of agencies:
89 154
- 8.8%
4,514 1,044
890 2017 924 Q1 2018
863
Q1 2017 3,590
952
DISTRIBUTION ACTIVITIES Under the iSelection and PERL brands (in units)
iSelection PERL
> 16,050 provisional sales aggreement signed by franchised agencies at 31 March 2018 (vs 15,631 at 31 March 2017)
>
Including 460 reservations intermediated on behalf of third-party real estate developers or through division of
- wnership of existing properties
NEXITY / PAGE 24 INVESTOR PRESENTATION - MAY 2018
REAL ESTATE SERVICES TO INDIVIDUALS
DIGITAL AND INNOVATION
BIEN’ICI EUGÉNIE MyNexity.fr SMART AGENCIES
> Opening of a new smart agency in Toulouse (31) in early 2018 > 345,000 users at end-March 2018 (+5% vs end-December 2017), after surging more than 37% in 2017 > 3rd largest real estate portal in the French market a mere 2 years after its launch > 7,720 member agencies at end-March 2018 (7,352 at end- 2017) > 4.25 million visits in Mars 2018 (record level) > Launch of the digital service Eugénie in early 2018 > Functionalities: smart appliances management, communication channel, approved providers listing tool, mini-community social network... > Looking forward, all Nexity homes will be connected
NEXITY / PAGE 25 INVESTOR PRESENTATION - MAY 2018
Partnership initiated in 2002 New step in 2016: Nexity increased its share to 45.16% of the Ægide group capital with a takeover option in 2018 Equity-accounted investment French leader in the serviced senior residences (independent- living facilities) with an integrated model: > Developement (Ægide) > Management of the residences (Domitys, 100% subsidiary of Ægide) Key figures: > At 31 March 2018: 78 residences managed by Domitys (representing around 9,300 units) > €400m revenue expected in 2018 vs €125m in 2013 > Pipeline of around 15 new residences per year > Occupancy rate of 98% in mature residences* > A strong services component (~15 jobs per residence) > Revenue per tenant: 60% services and 40% rent
STRATEGIC PARTNERSHIP WITH ÆGIDE-DOMITYS (SENIOR HOUSING)
* Occupancy rate over than 95% at 1st January 2017 representing around 50% of total residences
21% 63% 17%
Challengers (#2 to #5) Rest of the market COMPETITIVE LANDSCAPE (estimated market share)
Source: Observatoire Domitys
Total market of c.40k units Medium-term growth: +10% p.a. NUMBER OF RESIDENCES
59 52 41 25 15 72 36 2017 2016 2015 2014 2012 2011 2013
+30% CAGR
NEXITY / PAGE 26 INVESTOR PRESENTATION - MAY 2018
COMMERCIAL REAL ESTATE MARKETS
Sources: CBRE Marketview Investments France and Paris region offices – Q1 2018
TAKE-UP IN PARIS REGION (in millions of sq.m.) FRENCH COMMERCIAL REAL ESTATE INVESTMENTS (in billions of euros)
2016
+13%
0.7 2012 2010 2017 2.7 2008 2006 1.9 2007 2009 2011 2013 2014 Q1 2018 2015 0.9 0.6 2.8
0.7
0.5
2.6
5.5 2015 2006 2008 2010 27 2012 2007 2011 2009 8 2014 2013 12.4
3.3
2017 2016 3.6
26.6
5.1 Q1 2018
> Offices off-plan sales: €2.8 bn in Q1 2018, in line with Q1 2017 > Available office spaces: < 3.2 million sq.m in April 2018 > Vacancy rate: 5.5%
NEXITY / PAGE 27 INVESTOR PRESENTATION - MAY 2018
COMMERCIAL REAL ESTATE NEW ORDER INTAKE AND BACKLOG
> €12m order intake during Q1 2018, of which €5m in the rest of France > Backlog is equivalent to 15 months’ revenue from development activities (revenue basis, 12 months rolling period)
409 465
Q1 2018 revenue Additional works and
- ther
adjustments Q1 2018
- rder intake
31 Mar. 18
+12
- 70
31 Dec. 17*
+2
151
356 403 190 176 400
250
544
2016 2018 Target 2017
402
2013 2014 2015 2012 Average 2012-2017: 320
- 12%
Paris region Rest of France
ORDER INTAKE
(in €m)
BACKLOG
(in €m)
* Restated from new standard IFRS 15
NEXITY / PAGE 28 INVESTOR PRESENTATION - MAY 2018
BUSINESS POTENTIAL* FOR COMMERCIAL REAL ESTATE
> Significant land options signed in Q1 2018
3.9 YEARS OF ACTIVITY 830 (35%) 1,565 (65%)
€2,395m
7.0 YEARS OF ACTIVITY
AT 31 MARCH 2018
(in €m)
* Corresponds to the total volume of potential business at any given moment, expressed as estimated revenue excluding VAT, within future projects identified and validated by the Group’s Commitments Committee, in all structuring phases, including the programmes of the Group’s urban regeneration business (Villes & Projets). This business potential includes the Group’s current supply for sale (on purchased land or land secured under options) as well as its future supply (mainly on land secured under options)
739 (48%) 811 (52%)
Paris region Rest of France
€1,551m
+54%
AT 31 DECEMBER 2017
(in €m)
NEXITY / PAGE 29 INVESTOR PRESENTATION - MAY 2018
> Villes & Projets: ~588,500 sq.m in portfolio
CRÉTEIL L’ÉCHAT (94)
NEXITY’S PRESENCE IN THE GRAND PARIS
MEUDON – Pointe de Trivaux (92) 510 units – Retail spaces Delivery planned for 2020
Villes & Projets
VERSAILLES-CHANTIERS (78) Residential – Offices – Serviced residence BAGNEUX (92) 430 units – Retail spaces Delivery planned for 2022 SAINT-OUEN (93) 75,500 sq.m to be developed and Regional council premises
Villes & Projets
ROMAINVILLE – Villanova (93) 260 units Planned deliveries as of Q3 2017 CRÉTEIL L’ÉCHAT (94) 420 units – Serviced residence – Offices / Delivery planned for 2020 BRY-SUR-MARNE / VILLIERS-SUR- MARNE (94) 140,000 sq.m
Villes & Projets
MONTREUIL ACACIAS (93) 1.200 units – Serviced residence – Retail spaces / Planned deliveries as of 2018
Villes & Projets
ASNIÈRES (92) 84,800 sq.m
Villes & Projets
NEXITY / PAGE 30 INVESTOR PRESENTATION - MAY 2018
AND IN LARGE REGIONAL CITIES
> Démonstrating Nexity’s leadership on complex and multiproducts large projects
LOMME (59) Large housing consultation 550 units – Serviced residences Deliveries planned for end 2020 MONTPELLIER (34) 256 units - 70% free / 30% affordable - retail spaces Delivery planned for Q4 2020 BORDEAUX BELVÉDÈRE (33) Joint-venture 50/50 with Altaréa Cogedim / Pitch Mixed programme MGEN MARSEILLE (13) 418 units - 75% free / 25% social Delivery planned as of Q1 2021 VILLARBOREA - LYON (69) 416 units Delivery planned for Q3 2019
Villes & Projets
VILLENAVE-D’ORNON (33)
Villes & Projets
2.
Q1 2018 REVENUE
NEXITY / PAGE 32 INVESTOR PRESENTATION - MAY 2018
Q1 2018 CONSOLIDATED REVENUE*
445 388 158 175 70 83 1 1
Q1 2017
661
14 +57
- 17
Residential Real Estate Other activities
688
- 1
Q1 2018
+1
Real Estate Services to inidividuals Commercial Real Estate
+4.1%
Real Estate Services to companies
15
- 13
(in €m)
Commercial Clients: €85m
+7%
- 12%
>
Revenue up 4% vs Q1 2017
>
Increase in Residential Real Estate revenue (+15%) is due to the strong growth in the division’s backlog, including that of Edouard Denis, observed over the past several years, and the revenue related to the delivery of a project in Milan (Italy)
>
Decrease in Commercial Real Estate revenue largely due to adverse weather conditions that had hampered progress at construction sites
>
Revenue growth acceleration expected over the next quarters
Real Estate Services to Companies Other activities Commercial Real Estate Real Estate Services to Individuals Residential Real Estate
Individual Clients: €603m
* According to IFRS with joint ventures proportionately consolidated – After new segmentation and application of new reporting standards
NEXITY / PAGE 33 INVESTOR PRESENTATION - MAY 2018
NEW REPORTING STANDARDS AND NEW SEGMENTATION
Q1 2018 REVENUE BY CLIENT
86
Q1 2017 published
448 121 1
656
86 83 176 175 158 379 388 445 70 1
656
14
661
1 14
Q1 2017 restated
+5
Q1 2017 Q1 2018
688
1
+4.1%
15
Real Estate Services to Individuals Other activities Commercial Real Estate Real Estate Services to Companies Residential Real Estate Services Residential Other activities Commercial
Individual Clients Commercial Clients
New segmentation New standards and new segmentation
Segmentation impact IFRS 15 Impact
* According to IFRS with joint ventures proportionately consolidated – After new segmentation and application of new reporting standards
3.
OUTLOOK
NEXITY / PAGE 35 INVESTOR PRESENTATION - MAY 2018
RESERVATIONS AND REVENUE SEASONALITY (2017 BASED)
19%
Q4
23%
Q1 Q2 Q3
26% 31%
NEW HOME RESERVATIONS IN FRANCE (in % of total annual reservations)
19% Q4 Q2 Q1 38% 23% 19% Q2 36% 22% Q4 21% Q3 23% Q3 Q1
GROUP CONSOLIDATED REVENUE (in % of total annual revenue)
Published revenue Revenue restated from IFRS 15
NEXITY / PAGE 36 INVESTOR PRESENTATION - MAY 2018
18 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES
NEXITY BACKLOG(1) AT 31 MARCH 2018
(1) Corresponds to the Group’s order backlog in terms of forecast revenue and number of months of development activities According to IFRS with joint ventures proportionately
consolidated
(2) After new segmentation and application of new reporting standards
383 486 449 487 544 461 409 465 562
- Mar. 2018(2)
4,042
3,634
- Dec. 2017
restated(2)
+1% 3,991
3,526
- Dec. 2017
published
- Dec. 2014
- Mar. 2017
published
- Dec. 2016
3,293
3,631
4,092 4,008
2,806 2,869
4,754
- Mar. 2017
restated(2)
3,464 3,103
3,416
- Dec. 2015
313 4,191 2,834
3,283
- Dec. 2013
3,355
- Dec. 2012
2,702
3,085
in €m, excl. VAT, incl. Iselection, PERL, International, Edouard Denis and Primosud
Residential Real Estate Commercial Real Estate
NEXITY / PAGE 37 INVESTOR PRESENTATION - MAY 2018 (1) Financial data and indicators based on Nexity’s operational reporting, with joint ventures proportionately consolidated and take into account the two new reporting standards, IFRS 15, mandatory as of 1 January 2018, and IFRS 16, mandatory as of 1 January 2019 and which the Group will apply starting 1 January 2018 (2) EBITDA is the current operating profit before depreciation, amortisation and impairment of fixed assets (including lease payments restated under IFRS 16), 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. This guidance corresponds to a level of about €485 million that should be compared to €448 million in 2017 restated under the two new reporting standards, IFRS 15 and IFRS 16 (3) Compared with a dividend of €2,40 per share paid in 2017 – Pending the decision of Nexity’s Board of Directors and approval at the Shareholders’ Meeting (4) i.e. 75% payout ratio
2018 OUTLOOK(1)
INDIVIDUAL CLIENTS New home reservations in France: Continued growth in Nexity’s market share in a French market for new homes that should see slight contraction while remaining at a high level (120,000/125,000 reservations expected in 2018) FINANCIAL RESULTS Revenue and EBITDA(2) expected to grow by about 10% Dividend per share increase(3) €2,50 payable in 2018(4) At least €2,50 payable in 2019 COMMERCIAL CLIENTS Commercial Real Estate order intake: €400 million
NEXITY / PAGE 38 INVESTOR PRESENTATION - MAY 2018
- Reduce greenhouse gas
emissions by 30% per new home delivered, 21% per sq.m of floor area for office space, and 35% per employee by 2030
- Increase use of new construction
methods such as cross-laminated timber (CLT)
- 30% of projects and services based
- n a Circular Economy approach in
2025
- Continue to lead the market (>20%
market share) in priority urban planning districts and remain the number-one partner of social housing
- perators
- Occupancy cost control plan
provided for 100% of condominiums delivered in ANRU urban regeneration zones
- 30 condominiums renovated by 2020
- Wood-frame offices to make up 20%
- f office development projects by
2030 and BBCA low-carbon building certification for 50% of wood-frame developments
- 50% of projects with WELL (or
equivalent) certification
QUANTITATIVE CSR TARGETS FOR 2020-2030
DESIGNING SUSTAINABLE, RESPONSIBLE CITIES BETTER ACCESS TO HOUSING AND HIGHER- QUALITY NEIGHBOURHOODS BETTER BUILDING PRACTICES FOR HIGHER QUALITY OF LIFE AT WORK
NEXITY / PAGE 39 INVESTOR PRESENTATION - MAY 2018
DIVIDEND PER SHARE
in € per share
2018** 2019** 2.5 ≥2.5 2017 2016 2.2 2015 1.0 2007 2.0 1.6 1.9 2005 2006 2008 2011 2014 2.0 2.0 2.0 2012 2013 2.0 6.0 2010 1.6
4.0* 2.0
2009 2.4 1.5 Paid in:
* Special dividend following the sale of the participation held in Eurosic ** Pending decision of Nexity’s Board of Directors and approval at the Shareholders’ Meeting
NEXITY / PAGE 40 INVESTOR PRESENTATION - MAY 2018
Free float FCPE and other employees (3)
54.180.987 actions*
72.3%
6.4% 3.4% 12.5% 5.3%
- A. Dinin, New Port (2) and other Nexity
managers in the concert group Crédit Mutuel Arkéa Crédit Agricole Assurances
(1)
- /w treasury shares: 46,192 shares (0.1%)
(2) New Port 6.3% (3)
- /w employees (FCPE Nexity Actions and Nexity Levier 2017): 2.7%
56,129,724 shares (1) 15.9%
NEXITY’S OWNERSHIP STRUCTURE
31 MARCH 2018
4.
APPENDIX
NEXITY / PAGE 42 INVESTOR PRESENTATION - MAY 2018
FINANCIAL MODEL FOR RESIDENTIAL DEVELOPMENT
M0 M12 M36
60% 100% 40%
M6
Start of works + 12 months 49% of sales recognised with IFRS 15 vs 33% previously
Purchase
- ption on
land Sales phase, transfers of ownership, construction: M12 to M36 Pre-sales phase: M6 to M12 Delivery Start
- f
works Purchase
- ption
exercise
Projects phases
Administra- tive set-up: M0 to M12
1 2 3 4 6 7 5
1st transfers of ownership for reservations made during the pre-sales phase
5% upon reservation
Payment schedule
30% at completion
- f foundations
35% at completion
- f construction
except for water connections
25% at completion
- f all works
5% at key handover
At least 40% At least 60%
Nexity: 78% in 2017
* According to the percentage-of-completion method
NEXITY / PAGE 43 INVESTOR PRESENTATION - MAY 2018
CASH FLOW PROFILES FOR VEFA OFF-PLAN SALES
RESIDENTIAL REAL ESTATE for individual clients COMMERCIAL REAL ESTATE Assumptions by Nexity, basis of 100 RESIDENTIAL REAL ESTATE for social housing operators, with progress payments Cash outflows Cash inflows
Net cash
Purchase of land Purchase of land Purchase of land
110 94 62 28 4
- 100
- 85
- 71
- 56
- 38
- 25
- 5
- 2
- 29
Q4 Q3 Q2 Q1 Q8
10
Q7
9
Q6
- 9
Q5 107 95 70 35 5 5
- 100
- 78
- 64
- 49
- 35
- 20 -30
- 15
Q8
7
Q7
17
Q6
6
Q5
- 14
Q4 Q3 Q2 Q1 110 99 83 66 55 55
- 100
- 84
- 68
- 52
- 36
- 21
14
Q4
19
Q3
34
Q2 Q1
15
Q5 Q7 Q6
10
Q8
15
NEXITY / PAGE 44 INVESTOR PRESENTATION - MAY 2018
ESTIMATE OF THE TOTAL “SALES” VOLUME FOR NEW HOMES IN FRANCE
DEVELOPERS(1) Sales SINGLE-FAMILY HOUSES(3) Sales SOCIAL HOUSING(2) Financing authorisations
(1) Gross sales by developers, i.e. grouped single-family and multi-family housing – Source: Commissariat Général au Développement Durable (Sit@del2 basis) - New figures following the 2017 recast of the Enquête sur la commercialisation des logements neufs (ECLN, a French survey of new home sales) now called ECLN2 published in May 2017 (2) Number of homes financed, excluding ANRU urban regeneration areas – Source: Ministère de l’Égalité des Territoires et du Logement (3) Contracts for the construction of single-family houses – Source : Crédit Foncier – February 2017
(in thousands of units) Medium term trend
128 103 99 111 101 117 107 109 84 85 83 100 133 124 127
2016
384
2015
321
2014
289
2013
305
2012
313
Medium-term demand for new homes
(Source: INSEE)
400
NEXITY / PAGE 45 INVESTOR PRESENTATION - MAY 2018
NEXITY NEW HOMES COST BASE
8% 8% 8% 1% 4% 2017 100% 21% 51%
Financial costs Infrastructure & networks Construction costs Marketing & advertising Land costs External fees & Insurance 255 160 643 318
+59% +102%
first-ring second-ring EVOLUTION OF LAND* MEDIAN PRICES IN THE PARIS REGION (in €/sq.m)
2006 Q1 2017 * Bare lands earmarked for construction – sources: ORF, INSEE and Nexity
EVOLUTION OF CONSTRUCTION COST INDEX NEW HOMES COST BASE
(average cost of programmes)
Fixed internal costs
+1.3%
1,667
Q1 2006
1,362
Est +22%
Q4 2017 Q4 2016
1,645
NEXITY / PAGE 46 INVESTOR PRESENTATION - MAY 2018
SENSITIVITY TO MORTGAGE RATES GROWTH
FIRST-TIME BUYERS BUY-TO-LET INVESTOR “PINEL” SCHEME €50 €105 €24
+ 200 bps €1,013 €1,068 €963 €987 + 100 bps + 50 bps Jan.18 €117 €125 €136 €169
€19
Jan.18 + 200 bps + 100 bps
€8 €52
+ 50 bps Debt ratio 30% 31% 32% 33%
Source: Nexity – figures given for illustrative and indicative purpose only
> Herblay (95), 64.7 sq.m., €245,000 incl VAT > 2 people household + 1 child, €3,200 monthly income > Financing: 10% personal contribution + 40% PTZ + 50% loan over 25 years > Mortgage rate of 1.75% excl. insurance > Montreuil (93), 41.3 sq.m., €215,000 incl VAT > +50 years old, first-time investor, € 6,700 monthly income > Financing: 100% loan over 25 years > Mortgage rate of 1.85% excl. insurance > Monthly rent: €806 MONTHLY INSTALMENT (in euros) MONTHLY EXPENDITURE (in euros)
63% 25% 12%
Monthly expenditure Tax benefit Rent Investment Financing
NEXITY / PAGE 47 INVESTOR PRESENTATION - MAY 2018
2017 CONSOLIDATED INCOME STATEMENT*
+14% +21% +20% +33%
*According to IFRS with joint ventures proportionately consolidated ** Based on average number of shares outstanding over the financial year
in €m 2017 2016 Revenue 3,506.1 3,072.7 EBITDA 368.5 304.7 % EBITDA / Revenue 10.5% 9.9% Current operating profit 320.5 266.5 % Current operating profit / revenue 9.1% 8.7% Net financial income (expenses) (29.5) (28.0) Income taxes (94.8) (89.0) Share of profit / (loss) from equity-accounted investments (4.9) (7.2) Non-controlling interests (5.7) (3.2) Net profit attributable to equity holders of the parent company 185.6 139.1 in euros Earnings per share** 3.35 2.54
NEXITY / PAGE 48 INVESTOR PRESENTATION - MAY 2018
2017 CURRENT OPERATING PROFIT*
Residential Commercial Services Other activities
203 247 57 70 45 47
- 44
- 39
321
2016
266
2017
+20%
9.0%
9.3% 9.1%
8.7% 18.6%
9.5%
9.1%
17.7%
Residential Commercial Services Group
2016 2017 2016 2017 2016 2017 2016 2017
CURRENT OPERATING PROFIT
(in €m)
OPERATING PROFIT MARGIN
(in %)
>
€321m operating profit (up 20% vs 2016) after €16m total expenses from digital and innovation
>
Commercial real estate: continuation of a high margin rate, above its normative level (economic and financial context, excellent project management, reversals of provisions…)
* According to IFRS with joint ventures proportionately consolidated
NEXITY / PAGE 49 INVESTOR PRESENTATION - MAY 2018
2017 EBITDA*
Residential Commercial Services Other activities EBITDA
(in €m)
EBITDA MARGIN RATE
(in %)
˃
In Services division, the EBITDA margin rate of Property management for individuals (PMI) achieved 13.6% in 2017, versus 12.9% in 2016
9,3%
12,2% 10,5%
9,9% 18,5%
10,1%
11,2%
17,8%
2016 2017 2016 2017 2016 2017 2016 2017
210 263 57 71 55 62
- 28
+21%
2017
368 305
- 18
2016
* According to IFRS with joint ventures proportionately consolidated EBITDA: current operating profit before depreciation, amortisation and impairment of fixed 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
Residential Commercial Services Group
NEXITY / PAGE 50 INVESTOR PRESENTATION - MAY 2018
BALANCE SHEET* AT 31 DECEMBER 2017
343 133 774 132 1,213 1,643 ASSETS EQUITY AND LIABILITIES
WCR Other assets Goodwills Provisions Equity
(incl. Non-controlling interests)
Net debt
(in €m)
* According to IFRS with joint ventures proportionately consolidated
NEXITY / PAGE 51 INVESTOR PRESENTATION - MAY 2018
2017 WORKING CAPITAL REQUIREMENT*
- 3
826 759
Other activities (incl. income tax)
Commercial
- 41
Residential
- 44
Other activities (incl. Income tax)
- 40
+33 +23
+€82m
2017
- 67
32
692
Services Commercial
774
Services Residential
2016
- 63
- 1
(in €m)
* According to IFRS with joint ventures proportionately consolidated
> 78% average level of pre-sales booked at the start of construction work > Improvement of commercial WCR due to rising order intake at the end of the year > Growth in new land positions secured by the Group’s urban regeneration business (Villes & Projets)
NEXITY / PAGE 52 INVESTOR PRESENTATION - MAY 2018
2017 CHANGE IN NET CASH/DEBT POSITION*
(in €m) 2017
+23
- 317
CAPEX
- 131
- 33
Dividend
- 133
Interest and tax payments Changes in
- perating WCR
- 64
Cash flow from
- perations
before WCR, interest and tax
+356
2016
Capital increase
- 343
- 43
Adjustment on put options granted to non-controlling interests
+€26m
* According to IFRS with joint ventures proportionately consolidated
NEXITY / PAGE 53 INVESTOR PRESENTATION - MAY 2018
DEBT SCHEDULE AT 31 DECEMBER 2017*
Drawn at 31/12/2017 2018 2019 2020 2021 2022 (in €m)
> 36% of debt with term to maturity > 5 years > Average term to maturity: 3.6 years > Cost of financing (debt drawn down): 2.9% at 31 December 2017 (3.2% at 31 December 2016)
2023 2025 2024
* According to IFRS with joint ventures proportionately consolidated (1) Including €135m of bonds issued in January 2013 (2) Including €25m of bonds issued in May 2014 (3) Including €146m of bonds issued in May 2014 (4) €270m of convertible bonds (incl. shareholders’ equity) issued in May 2016 (maturity date 1 January 2023) + €30m of bonds issued un June 2017 (5) €121m of bonds issued in June 2017
- 942
- 239
2 121 (5) 300(4) 111(2)
- 1 181
302(3) 109 236(1)
Corporate borrowings Project-related loans
NEXITY / PAGE 54 INVESTOR PRESENTATION - MAY 2018
2017 CASH FLOW STATEMENT*
* According to IFRS with joint ventures proportionately consolidated
In €m 2017 2016 Cash flow from operating activities before financial and tax expenses 356 289 Cash flow from operating activities after financial and tax expenses 239 182 Change in operating WCR (excluding tax) (64) (28) Change in tax-related w orking capital, dividends from equity-accounted investments and other 9 37 Net cash from / (used in) operating investments (33) (23) Free cash flow 152 168 Net cash from / (used in) financial investments (10) (57) Dividends paid by Nexity SA (133) (121) Net cash from / (used in) financing activities (excluding dividend) 132 (112) Change in cash and cash equivalents 141 (122)
NEXITY / PAGE 55 INVESTOR PRESENTATION - MAY 2018
10-YEAR CHANGES IN EBITDA, CASH FLOW FROM OPERATING ACTIVITIES AND FREE CASH FLOW*
152 168 221 9 42 118 162 337 191 235 2008 2009 2013 2012 2011 2010 2014 2015 2017 2016 368 305 260 221 228 232 215 224 217 265 239 182 149 117 133 128 132 133 122 151 EBITDA
(in €m)
CASH FLOW FROM OPERATING ACTIVITIES after financial and tax expenses
(in €m)
FREE CASH FLOW
(in €m)
Average 2008-2017: 164 Average 2008-2017: 149 Average 2008-2017: 254
* According to IFRS with joint ventures proportionately consolidated
NEXITY / PAGE 56 INVESTOR PRESENTATION - MAY 2018
NEW REPORTING STANDARDS
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; corresponding decrease in backlog Operating profit more closely correlated to fluctuations in business activity
NEXITY / PAGE 57 INVESTOR PRESENTATION - MAY 2018
NEW REPORTING STANDARDS
IFRS 16: LEASES
> Scope: Leases of buildings used for business operations, IT equipment, lease payments for serviced residences > Current standard: information provided off balance sheet in the notes to the financial statements > New standard: the amount payable will be presented in the Group’s statement of financial position in the form of a right-of-use asset under fixed assets, and a lease liability under borrowings
Improvement in operating profit, decline in net financial income/(expense), strong improvements in cash from operating activities before changes in working capital and in EBITDA Increase in debt
NEXITY / PAGE 58 INVESTOR PRESENTATION - MAY 2018
2018 NEW OPERATING SEGMENTS
> Continuation of Nexity's development strategy towards a real estate services platform > The Group will now present its financial communication according to its customer-centric
- rganization
2017 REVENUE* (in % and in €m) Current operating segments New operating segments 11% (397) 74% (2,597) 14% (507) 2017 EBITDA** (in % and in €m)
Commercial Services Residential
18% (71) 16% (62) 66% (263) 13% (461) 87% (3,041 (1))
Commercial Clients Individual Clients
82% (324(2)) 18% (73)
*o/w €4m for Other activities
(1) incl. Residential real
estate (€2,228m)
- incl. Services to individuals
(€813m)
(2) incl. Residential real estate
(€210m)
- incl. Services to individuals
(€114m)
** o/w -€28m for Other activities
Current operating segments New operating segments
NEXITY / PAGE 59 INVESTOR PRESENTATION - MAY 2018
NEW REPORTING STANDARDS AND NEW OPERATING SEGMENTS
REVENUE* BY CLIENT
4 507 397 2,598
2017
3,506
813 810 343 397
3,506
4 2,350
2017
+65
3,571
2017
4 63 64 2,228
Other activities Services to companies Commercial real estate Services to individuals Residential real estate Other activities Residential Services Commercial
Individual Clients Commercial Clients
Current standards and current segmentation New segmentation New standards and new segmentation
Segmentation impacts IFRS 15 & 16 Impacts
* According to IFRS with joint ventures proportionately consolidated
NEXITY / PAGE 60 INVESTOR PRESENTATION - MAY 2018
NEW REPORTING STANDARDS AND NEW OPERATING SEGMENTS
EBITDA* BY CLIENT
71 62
2017
368
264
- 28
71 62 114 172 210 234 4 +80
2017
368 448
- 28
2
2017
- 24
Commercial real estate Other activities Services to individuals Services to companies Residential real estate Other activities Services Commercial Residential
Individual Clients Commercial Clients
IFRS 15 & 16 Impacts
* According to IFRS with joint ventures proportionately consolidated
Current standards and current segmentation New segmentation New standards and new segmentation
Segmentation impacts
NEXITY / PAGE 61 INVESTOR PRESENTATION - MAY 2018
18 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES
NEXITY BACKLOG* AT 31 DECEMBER 2017
Commercial Residential
390 709 383 486 449 487 465 562 544
4,754
- Dec. 2015
3,293
2,806 4,191
- Dec. 2016
4,008
3,464
- Dec. 2014
3,283
2,869 2,834
- Dec. 2013
3,355
- Dec. 2012
2,734
2,344
- Dec. 2010
3,085
2,606 2,702
- Dec. 2011
3,315
- Dec. 2017
IFRS 15
3,991
- Dec. 2017
+19%
3,526 19 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES
* Corresponds to the Group’s order backlog in terms of forecast revenue and number of months of development activities According to IFRS with joint ventures proportionately consolidated
In €m, excl. VAT, incl. Iselection, PERL, International, Edouard Denis and Primosud
18 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES
Commercial Residential
390 709 383 486 449 487 465 562 544
4,754
- Dec. 2015
3,293
2,806 4,191
- Dec. 2016
4,008
3,464
- Dec. 2014
3,283
2,869 2,834
- Dec. 2013
3,355
- Dec. 2012
2,734
2,344
- Dec. 2010
3,085
2,606 2,702
- Dec. 2011
3,315
- Dec. 2017
IFRS 15
3,991
- Dec. 2017
+19%
3,526
NEXITY / PAGE 62 INVESTOR PRESENTATION - MAY 2018
MAIN INDICATORS RESTATED
* After new segmentation and application of new reporting standards ** Based on average number of shares outstanding over the financial year
In €m3 31/12/2017 Operational reporting (reported) 31/12/2017 Operational reporting Restated* Revenue 3,506.1 3,571.3 EBITDA 368.5 448.1 as a % of sales 10.5% 12.5% Current Operating Profit 320.5 325.5 as a % of sales 9.1% 9.1% Net profit 185.6 182.7 Total equity 1,643 1,675 WCR 774 826 Net debt 342.7 647.0 Free cash flow 152.2 231.7 Backlog 4,754 3,991 in number of months 19 18 In € Basic earnings per share** 3.35 3.30 Earnings per share adjusted for one-off positive tax items** 3.22 3.17
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