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, the fairness, accuracy, completeness or 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 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 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. NEXITY / INVESTOR PRESENTATION - MAY 2018 PAGE 2
NEXITY’S EVOLVING BUSINESS MODEL One-product company Property developer Single brand: (pure property developer) + Service provider Integrated real estate operator 2004 2007 2012 Becoming a Real Estate Services Platform Customer-centric organisation Provider of recurring and value-added services 2017 Growth in all Increased connectivity Strong customer focus business lines between business lines ˃ Strong market positions ˃ Cross-selling ˃ Aided by digital transformation ˃ Continuous improvement ˃ New packaged offerings ˃ Data-driven model ˃ Growth initiatives NEXITY / INVESTOR PRESENTATION - MAY 2018 PAGE 3
NEXITY: THE LEADING FRENCH REAL ESTATE DEVELOPER BUSINESS ACTIVITY NEW HOMES RESERVATIONS (in units) ORDER INTAKE (in €m, incl. VAT) (residential + commercial) 4,299 21,372 3,709 3,550 15,199 11,189 1,934 9,027 1,545 6,630 5,776 1,083 Nexity Altarea Bouygues Kaufman Vinci Icade** Nexity Bouygues Altarea Kaufman Vinci Icade Cogedim Immobilier* & Broad Immobilier Immobilier Cogedim & Broad Immobilier FINANCIALS – Real Estate Development (residential + commercial) REVENUE (in €m, excl. VAT) EBIT MARGIN (as a % of revenue) 2,995 10.6% 2,712 8.5% 8.2% 8.0% 7.2% 6.3% 1,731 1,391 1,209 896 Nexity Bouygues Altarea Kaufman Icade Vinci Nexity 2 3 4 5 6 Immobilier Cogedim & Broad Immobilier * 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 Sources: company press releases of the sample (based on company-specific methods) NEXITY / INVESTOR PRESENTATION - MAY 2018 PAGE 4
RESIDENTIAL REAL ESTATE MARKET SHARES (PRE-SALES) NEXITY MARKET SHARE NEXITY’S MARKET SHARE GROWTH* AT 31 DECEMBER 2017* +1.6 pt 12.4% 14.1% 11.5% 12.5% 12.1% 11.8% 11.7% 10.6% 10.9% 9.7% 8.8% 8.6% 7.6% 20.1% (17.0%**) 13.7% 18.1% 2016 2017 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (16.4%**) (15.7%**) MARKET SHARES OF THE LEADING PLAYERS IN THE FRENCH NEW HOME MARKET IN 2017* 7.8% Nexity 13.0% (6.9%**) 14.1% (9.9%**) 11.6% Bouygues Immobilier*** 11.7% Others 54.3% 8.6% Altarea Cogedim 63.0% 6.9% Kaufman & Broad New home reservation market source: Commissariat Général au Développement Durable (ECLN) Vinci Immobilier (5.1%) * Market shares calculated by Nexity, based on ECLN latest figures Icade (4.3%) ** Market shares at 31 December 2016 *** Including subdivisions and commercial premises (excluding international) NEXITY / INVESTOR PRESENTATION - MAY 2018 PAGE 5
A MANAGEMENT TEAM TO IMPLEMENT NEXITY’S STRATEGY Alain DININ Chairman and CEO Jean-Philippe RUGGIERI Julien CARMONA Véronique BÉDAGUE Frédéric VERDAVAINE Deputy Chief Executive Officer in charge of Deputy Chief Executive Officer in charge of Deputy Managing Director in charge of Deputy Chief Executive Officer in charge of INTERNAL CLIENTS INDIVIDUAL CLIENTS COMMERCIAL AND LOCAL INDIVIDUAL CLIENTS AUTHORITY CLIENTS Group support functions Development of new homes Property management, Group support functions ( Nexity, E. Denis, Primosud …) Management of residences (Human Ressources) (Finance, Legal, HR, Digital, etc.) Subdivisions (Studéa) Franchise networks Commercial real estate development Strategy and Innovation Offices, warehouses, retail premises, hotels, etc. (Century 21, Guy Hoquet) Property management and advisory Distribution activities International services for commercial real estate (PERL, iSelection,…) Villes & Projets Urban planning, project management for urban regeneration and smart city development Categories for financial communication: Individual Clients Commercial Clients Other activities NEXITY / INVESTOR PRESENTATION - MAY 2018 PAGE 6
NEXITY KEY FIGURES (2014-2017)* RESIDENTIAL NEW HOME RESERVATIONS (in volume) +70% 21,372 18,890 vs 2014 14,235 12,562 2014 2015 2016 2017 GROUP REVENUE DEVELOPMENT BACKLOG (€m) (€m) +33% +45% vs 2014 vs 2014 3,506 4,754 3,057 3,073 4,008 2,632 3,283 3,293 CURRENT OPERATING PROFIT (€m) AND MARGIN 2014 2015 2016 2017 2014 2015 2016 2017 +74% 9.1% 8.7% 7.2% 7.0% vs 2014 321 +2.1 pts 266 220 184 vs 2014 2014 2015 2016 2017 * According to IFRS with joint ventures proportionately consolidated NEXITY / INVESTOR PRESENTATION - MAY 2018 PAGE 7
2017 TARGETS (1) EXCEDEED 2017 Guidance (2) Growth in a +15% +21% NEW HOME RESERVATIONS IN FRANCE French market RÉVISED In volume In value expected slightly up, 14.1% market share RESIDENTIAL MARKET SHARE +1.6 pt increase of more than 1pt COMMERCIAL REAL ESTATE €402m > €350m ORDER INTAKE +14% REVENUE €3.5 bn Up ~10% +20% €321m CURRENT OPERATING PROFIT > €300m +0.4 pt 9.1% GROUP CURRENT OPERATING MARGIN +21% €368m EBITDA +33% €186m GROUP SHARE OF NET PROFIT +19% €4.8 bn DEVELOPMENT BACKLOG Gearing €343m NET DEBT 21% (1) According to IFRS with joint ventures proportionately consolidated (2) Guidance announced on 22 February 2017, partially revised up on October 2017 NEXITY / INVESTOR PRESENTATION - MAY 2018 PAGE 8
Q1 2018 KEY FIGURES (1) FINANCIALS 2018 GUIDANCE (2) ▪ Revenue and EBITDA: growth by about ~10% €688m +4% vs Q1 17 > Revenue: ▪ 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 €4.0bn +1% vs 2017 > Backlog: expected in 2018) ▪ Commercial real estate order intake: €400m INDIVIDUAL CLIENTS COMMERCIAL CLIENTS €603m > Revenue: +7% vs Q1 17 €85m -12% vs Q1 17 > Revenue: +3.2% +9.2% > New home reservations in in volume in value France: €12m > Order intake: > Services to Individuals, > Services to companies, -0.2% 887,000 units 11.2 million sq.m -0.5% units under management: surface under management: vs 2017 vs 2017 +54% vs 2017 +4% 49,581 units > Business potential: €2.4bn > Business potential: vs 2017 LOCAL AUTHORITY CLIENTS -1.5% ~580,000 sq.m > Villes & Projets portfolio: vs 2017 (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 NEXITY / INVESTOR PRESENTATION - MAY 2018 PAGE 9
1. MARKETS AND BUSINESS ACTIVITY Q1 2018
POPULATION DYNAMICS POPULATION GROWTH AND HOUSEHOLD STRUCTURE Between now and 2040, 6 million more households BETWEEN NOW AND in France 2040 NUMBER OF HOUSEHOLDS, Metropolitain France (1) , (in millions) +6m Demand for new homes in 34 the range of 400,000 units 28 32 30 per year until 2040 (2) , 27 compared to 267,000 22 dwellings produced in 2014 (3) 2014 2030e 1990 2010 2020e 2040e 62% of small size households BETWEEN 2009 AND 2014 +9% Single people contributed +3% -1% +10% +3% to 67% of household growth Single-parent Single Childless Couple Other (1) Source: INSEE 2010 and 2012 people couple with children family households* (2) Excluding the impact of internal migration, which is not quantified 2,534,339 (3) Source: Commissariat Général au Développement Durable, 9,847,917 7,486,338 7,449,539 726,236 Chiffres et statistiques 601, logements neufs * 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 ...) NEXITY / INVESTOR PRESENTATION - MAY 2018 PAGE 11
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