2013 BUSINESS ACTIVITY AND RESULTS - … · Source: CBRE, Bureaux Île-de-France Q4 2013 PAGE 9 ......
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2013 BUSINESS ACTIVITY AND RESULTS
Transcript of 2013 BUSINESS ACTIVITY AND RESULTS - … · Source: CBRE, Bureaux Île-de-France Q4 2013 PAGE 9 ......
2013 BUSINESS ACTIVITY AND RESULTS
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DISCLAIMER
The information contained in this document has not been independently verified. No representation, warranty orundertaking, 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, itsshareholders, its advisors or representatives nor any other person shall have any liability whatsoever for any lossarising 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 orpurchase any securities, and this shall not form the basis for or be used for any such offer or invitation or othercontract or engagement in any jurisdiction.
The information, assumptions and estimates that were used to determine these objectives are subject tomodification due to economic, financial and competitive uncertainties. Furthermore, it is possible that some of therisks described in chapter 4 in the Document de Référence, filed with the AMF under number D.13-0342 on April 12,2013, could have an impact on the company’s ability to achieve these objectives. Accordingly, the Company cannotgive any assurance as to whether it will achieve the objectives described, and makes no commitment or undertakingto update or otherwise revise this information.
No assurance is given as to the fairness, accuracy, completeness or correctness of the information or opinionscontained in this document.
12013 BUSINESS ACTIVITY
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120,000
80,000
60,000
100,000
40,000
20,000
0
~85,000
2012 2013 (e)
~-4%
89,000
2011
105,000
2010
115,000
2009
106,000
2008
79,000
2007
127,000
2006200520042003200220012000
Average 1985/2013: 89,400
Number of reservations
NEW HOME RESERVATION MARKET (DEVELOPERS)
DEVELOPERS’ NEW HOME RESERVATIONS IN FRANCE (in units)
Sources: Commissariat Général au Développement Durable, chiffres & statistiques n°395 for 2012, Nexity estimates for 2013
RESIDENTIAL
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3.3%
Q4 09Q4 08
5.1%
Q4 07
3.1%
Q3 13
2.6%
3.0%
Q2 13
2.9%
4.1%
2.0%
4.3%
4.4%
Q4 13Q4 06
3.9%
Q4 05
3.4%
Q4 04Q4 03 Q4 10 Q1 13
3.1%
Q4 12Q3 12Q2 12Q1 12Q4 11
3.9%
Source: Observatoire Crédit Logement(1) Source: Meilleur Taux, “good” client profile, 31 Janauary 2014
Average 20 years fixed mortgage rate in January 2014: 3.25% excl. insurance vs 3.1% in July 2013 (1)
10 years OAT bond
mortage rates
MORTGAGE RATES
MORTGAGE RATES (all markets, excl. insurance, last month of the quarter, average)
RESIDENTIAL
97251174
-4%
2013
12,322
10,121
2,104
2012
12,774
10,191
2,332
2011
14,432
11,424
2,834
215
182 1702695
61
2013
+1%
2,160
1,965
2012
2,137
1,860
2011
2,528
2,252
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+6%-1%
RESERVATIONS 2013
VOLUME(in units)
VALUE(in €m, incl.VAT)
Subdivisions
International
New homes(France)
RESIDENTIAL
2013
35%
35%
10,121
7%
10,191
11,424
19%
7%
48%
26%
2012
21%
6%
37%
36%
2011
23%
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KEY CLIENT SEGMENTS PERFORMANCE
NEW HOME RESERVATIONS BREAKDOWN BY CUSTOMER TYPE(excl. International, in units)
First-time buyers
Individual investors
Other home buyers
Professional landlords
RESIDENTIAL
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2014e
-4%
16-17
2013*
~15.5
T1
T2
T3
T4
2012
16.1
201120102009
7.6
20082007
27.0
200620052004
COMMERCIAL INVESTMENT MARKET
COMMERCIAL INVESTMENT MARKET IN FRANCE(in €bn)
Source: CBRE, Investissement France, Q4 2013*Provisional figures
COMMERCIAL
PAGE 9Source: CBRE, Bureaux Île-de-France Q4 2013
2014e
-25%
2.0
2013
1.8
T1
T2
T3
T4
2012
2.4
2011
2.4
2010
2.1
2009
1.9
2008
2.4
2007
2.7
COMMERCIAL RENTAL MARKET
TAKE-UP IN PARIS REGION (in millions of sq.m.)
COMMERCIAL
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350
544
176
x3
2013 target
20132012
486
383
+12
31 Dec 13additional works & other adjustments
2013 order intake
+544
2013 revenue
-453
31 Dec 12
COMMERCIAL: NEW ORDER INTAKE AND BACKLOG
NEW ORDER INTAKE(in €m)
BACKLOG(in €m)
COMMERCIAL
ORALIA PROPERTY MANAGEMENT GROUP SHARES PURCHASE AGREEMENT (DECEMBER 2013)
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Oralia is the 5 th largest property management group in France � Portfolio of over 165,000 units under management in 2013
- ~ 31,000 units under rental management agreements- ~134,000 units under condominium management agreements
� 25 agencies, mostly in Paris and Lyon� 635 employees� Annual revenue of approximately €60 million
- o/w more than 75% is generated by agencies located in Paris and Lyon cities
This acquisition consolidates Nexity’s position as F rance top integrated real estate playerand second largest property manager� After integration, Nexity will have ca. 970,000 uni ts under management
- ~180,000 units under rental management agreements- ~790,000 units under condominium management agreements
Acquisition announced in December 2013, subject to approval by the Autorité de la Concurrence (France’s competition regulator) and should be comp leted in H1 2014
SERVICES AND DISTRIBUTION NETWORKS
STRATEGIC ORIENTATIONS FOR REAL ESTATE SERVICES TO INDIVIDUALS
3 LEVERS to improve
the profitability of real estate
services to individuals
• Head office: reorganised in 2013
• Agencies: optimisation and productivity
PRODUCTIVITY GAINSEXTERNAL GROWTH
• February 2012: acquisition of IcadeRésidences Services (student residences)
• December 2013: acquisition of Oralia(property management)
• Launch of new solutions in 2013 and media campaign
• Development of a sales and marketing culture among employees
ORGANIC GROWTH
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CREATION OF A NEW “REAL ESTATE SERVICES TO COMPANIES” DIVISION
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Brokerage
Propertymanagement
Appraisals Consulting for site development and works
Advisory
RICHER AND INTEGRATED
OFFERING
• Resulting from the integration of La Française AM’steams in property management and commercial realestate advisory and brokerage (late 2011)
• Grouping of business lines within a single division adopting a centralised organisational structure:- Property management- Commercial real estate brokerage and advisory- Appraisals (newly formed business line)
• Anticipated strengthening of teams in consultingfor site development and works and advisory services
• An integrated offering , able to provide solutions to all issues faced by clients
22013 RESULTS
2013 REVENUE
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453518
453 44666
+1
Services & Distribution
networks
-7
Other activities
Commercial
1,832
2,737
20132012
-23
Residential
-642,831
1,855
-3.3 %
Residential
Commercial
Services & Distribution networks
Iselection, which was previously part of the “Services and Distribution Networks” division, became part of the Residential real estate division from an organisational standpoint at the start of the year. The revenue, operating profit, and WCR data presented in this presentation take into account this reclassification and the data relating
to 2012 are presented according to the same classification in order to provide better comparability
(in €m)
2013 OPERATIONAL PERFORMANCE
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OPERATING PROFIT MARGIN(in %)
*2012 operating profit margin
OPERATING PROFIT(in €m)
8.4%7.0%
9.1%(9.7%)*
(4.9%)*
(5.3%)*
(7.1%)*
5.0%
Residential
Commercial
Services and Networks
Other activities
192
2013
22
38
166
-34
Group
P&L AND EARNINGS 2013
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2013 2012Revenue 2,737.2 2,831.3
Current operating profit 192.4 200.4
margin 7.0% 7.1%
Net financial income (expense) (7.2) (4.5)
Dividend tax (3%) (3.3) -
Income taxes (74.6) (75.4)
Non recurring taxes - (18.8)
Current profit after tax 107.3 101.7
Goodwill impairment - (55.0)
Equity accounted companies and interests (7.2) (4.9)
Group share of net profit 100.1 41.8
(in €m)
WORKING CAPITAL REQUIREMENT EVOLUTION
Other activities and taxes
Commercial
Residential
Services & Networks
Residential
> Sales in VEFA: Average pre-commercialisation rate of 74% at construction start
Commercial
> One-off boost at the end of 2013 (receipt of client advances): negative WCR
-71-46-36
-52
1
-49
533474443
69
7380
478502
438
+€41m
Dec 2013
June 2013
Dec 2012
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(in €m)
CHANGE IN NET CASH POSITION
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NET CASH POSITION(in €m)
252
322
-€70m
Dec 2013Others
-5
CAPEX
-17
Dividend
-107
interest and tax payments
-101
changes in operating
WCR
-56
cash flow from operations
before WCR, interest and
tax
+216
Dec 2012
BACKLOG
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18 MONTHS’ DEVELOPMENT ACTIVITY
970556
390
709 383486
2,869
3,355
Dec 2013Dec 2012
3,098
2,715
Dec 2011
3,324
2,615
Dec 2010
2,751
2,361
Dec 2009
2,633
2,077
Dec 2008
3,106
2,136
(in €m, excl. VAT and incl. Iselection and International)
Commercial
Residential
GROUP STRATEGY
External growthOralia (Services to individuals)
Structuring our offerNew Real estate services to companies division (expanded service offerings)
InnovationYwood, Weroom, Eco-centres, configurator,car-sharing, “démembrement” scheme for buy-to-let
Development of land potentialNew urban regeneration operations “Villes & Projets”
Services Adapting the business model to the new legal framework (ALUR law)
REINFORCE MARKET
POSITIONS
IMPROVE OPERATIONAL
PERFORMANCEReal estate development (residential and commercia l)
Focus on margins in a sluggish market
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GUIDANCE 2014
� Confirmed strategy of reinforcing market positions (external growth, innovation, land development potential, etc.) and improving operational performance (focus on development margins and adapting the Services business model to a new legal framework)
� Residential: comparable level of activity in a new home market expected to remain stable in 2014, not to pick up before 2015
� Commercial: order intake to reach a low of around €100m
� Services to individuals: acquisition of Oralia
� Services to businesses: organisation withing a new business line of a broader, integrated offering
� Consolidated revenue for 2014 expected to exceed €2 .5 billion
� Current operating profit target for 2014 of at leas t €170 million
� Confirmed proposal to distribute a dividend of €2 per share in respect of 2013
� Company considering proposing next year to shareholders to renew the same dividend
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