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2019 FULL-YEAR RESULTS · SUCCESSFULL MULTISERVICES, MULTIPRODUCTS AND MULTIBRAND GROWTH STRATEGY...
Transcript of 2019 FULL-YEAR RESULTS · SUCCESSFULL MULTISERVICES, MULTIPRODUCTS AND MULTIBRAND GROWTH STRATEGY...
2019 FULL-YEAR RESULTSINVESTOR PRESENTATION
2Nexity / 2019 Full-year Results
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. 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.19-0272 on 4 April 2019, 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.
All financial figures are presented according to IFRS with joint ventures proportionately consolidated.
2019Key figures and highlights
4Nexity / 2019 Full-year Results
2019 targets exceeded
REVENUE
EBITDA
NET PROFIT BEFORE NON RECURRING ITEMS (Group share)
INDIVIDUAL CLIENTS
INTERNAL CLIENTSLOCAL AUTHORITY CLIENTS
COMMERCIAL CLIENTS
Individual86%
Commercial14%
Commercial13%
Individual87%
€163m-18%
€4,499m+9%
€573m+10%
NET FINANCIAL DEBT (before lease liabilities)
€918m
21,837 new home reservation in France
14.2% estimated market share
17 openings in senior serviced residences
4 openings in student serviced residences
880,000 units under management
€521m (excl. VAT) Commercial Real
Estate order intake
o/w 36% wood-frame projects
22 short term shared workplace locations
(Morning Coworking)
20 million of sq.m under management
>11,000 employees
Women make up 34% of the Club 1797
18% of the share capital held by
employees and managers
Winner of many high profile calls for
proposals
540.400 sq.m in the Ville & Projet
portfolio
✓
✓
✓ ✓
✓
✓ : 2019 target exceeded
PIPELINE (development)
o/w backlog
o/w business potential
€20.4bn€5.1bn, +14%
€15.3bn, +7%
5Nexity / 2019 Full-year Results
A growth track record (2014-2019)
GROUP REVENUE(€m)
NEW HOME RESERVATIONS(in volume)
2014 2019
10,365
21,837
4,499
2014 2019
2,632
X1.7vs 2014
X2.1vs 2014
* total shareholder return at 31 December 2019, i.e +13% on average per year
TSR*
+84%since 2014
484
2014 2019
1.065
SERVICES REVENUE(€m)
X2.2vs 2014
CURRENT OPERATING PROFIT (€m) AND MARGIN RATE
184353
2014
7.0% 7.8%
2019
X1.9vs 2014
>11,000 EMPLOYEES
6Nexity / 2019 Full-year Results
DEVELOPMENTXX SERVICES
16% of 2019 revenue generated by integrated development / services solutions (€725m)
45
2019
320
360
725
Development of Serviced ResidencesManagement of Serviced ResidencesProperty management to individuals and Distribution
Villes & Projets
~€250mon average per yearbetween 2015 and
2019
Future growth trend +15% per year +10% per year +/- stable
2019 revenueIn €m
▪ Projects sourced by urbanregeneration (Villes & Projets) activities have a 3 to 4 points higher margin level compared to Group level
Nexity Solutions EntrepriseIntegrated offers
ongoing
7Nexity / 2019 Full-year Results
Corporate Responsibility
Strong partnerships
▪ Humanité & Biodiversité
▪ Nexity Non Profit: 777 housing units in family shelters secured in 2019
Targets in terms of reducing GHG emissions by 2030:
Performance recognised by non-financial rating agencies
4th place overall (230 companies) compared to 12th place in 2018
France’s #1 low-carbon developer
One of the 12 French companies selected by Bloomberg in its GEI Index 2020, on gender equality
Climate change A- in 2020, Nexity part of the 6% best scores worldwide, all sectors
Create social, environmental and economic value through5 committments:
Be recognised as a preferred employer
Better access to housing and higher-quality neighbourhoods
Better building practices for higher quality of life at work
Upholding high standards in corporate governance and business ethics
Designing sustainable, responsible cities
Supported by an involved governance:
▪ Stakeholder committee
▪ Dedicated committees: Strategy Committee and Board of Directors
• -35% per employee• -30% per new home delivered• -21% per sq.m of floor area for office space delivered
€240m inaugural Green Bond issue
• 1st green bond issued by a developer in France
▪ Residential Real Estate with a level of energy performance belonging to the top 15%
2019 Financial results
9Nexity / 2019 Full-year Results
2019 P&L statement
+9%
+10%
-17%
* Of which €2m change in fair value of the ORNANE bond issue** Based on average number of shares outstanding over the period
-42%
-5%
-18%
In million of euros FY 2019 FY 2018
Revenue 4,498.8 4,135.0
EBITDA 572.9 523.0
% of revenue 12 .7% 12.6%
Current operating profit 353.2 372.7
% of revenue 7.9% 9.0%
Remeasurement of Ægide-Domitys following acquisition of control - 79.2
Operating profit 353.2 451.9
Net financial income / (expense) (78.2) (51.7)
Fair value adjustment of the ORNANE bond issue (2.0)
Income tax (103.6) (113.1)
Share of profit/(loss) from equity-accounted investments 0.0 (4.7)
Net profit 169.4 282.4
Non-controlling interests (8.7) (5.5)
Net profit attributable to equity holders of the parent company 160.7 276.9
Non-recurring items* (2.0) 79.2
Net profit attributable to equity holders of the parent company before non-recurring items 162.7 197.7
In euros
Net earnings per share** 2.90 4.95
Net earnings per share* before non-recurring items 2.92 3.53
10Nexity / 2019 Full-year Results
2019 revenue
(in M€)
Total
Development
Services
Individual Clients Commercial Clients Group*
20192018
3,550
4,014
+13%
▪ €4,279m on a like-for-like basis (+4%)
* o/w Other activities: €0.9m in 2019 and €4.3m in 2018
2018 2019
4,135
4,499
+9%
581
2018 2019
484
-17%
2018 2019
2,648
3,049
+15%
20192018
512
384
-25%
Residential Real EstateLFL: +12%
Commercial Real Estate Total Development
Services to individualsLFL: -3%
Services to companiesLFL: +12%
Total Services
2018
902
2019
965
+7%
2018 2019
6999
+45%
20192018
3,160
3,433
+9%
20192018
970
1,065
+10%
11Nexity / 2019 Full-year Results
EBITDA and margin rates in 2019
(in €m and in %)
Total
Development
Services
2018 2019
477(13.4%)
540(13.4%)
+13%
2018 2019
523(12.6%)
573(12.7%)
+10%
2018
62(12.8%)
2019
72(12.3%)
-14%
2018 2019
304(10.0%)
284(10.7%)
+7%
20192018
65(12.7%)
43(11.1%)
-34%
2018 2019
194(21.5%)
236(24.5%)
+22%
2018 2019
7(10.0%)
19(19.1%)
+175%
20192018
348(11.0%)
346(10.1%)
-1%
2018 2019
201(20.7%)
255(24.0%)
+27%
▪ €525m on a like-for-like basis (stable)
▪ €403m after leases (IFRS 16) in 2019
* o/w Other activities: -€29m in 2019 and -€26m in 2018
Individual Clients Commercial Clients Group*
Residential Real Estate Commercial Real Estate Total Development
Services to individuals Services to companies Total Services
12Nexity / 2019 Full-year Results
Simplified balance sheet at 31 December 2019
918
239
908
1,598
1,019
828
1,757
102
Lease liabilities(IFRS 16)
Right-of-use leased assets
ASSETS EQUITY AND LIABILITIES
WCR
Other assets
Goodwills
Provisions
Equity(incl. non-controlling interests)
Net financial debtbefore lease liabilities
Total net debt: €1,826m
(in €m)
13Nexity / 2019 Full-year Results
Change in 2019 working capital requirement (WCR)
(in €m)
762875
87
9048
Individual ClientsReal Estate Services
to Individuals
Commercial Clients
+116
Individual ClientsResidential Real Estate
Other Activities (incl. Income tax)
+3
2018
-2 +6 54
2019
896
1,019
+123 M€
Individual Clients: +€114m
▪ Controlled Residential Real Estate WCR growth due to the dynamism of business activity
▪ BFR to Backlog ratio stable for development activities at around 20%
Commercial Clients
Individual Clients
Other Activities (incl. Income tax)
14Nexity / 2019 Full-year Results
Change in net financial debt before lease liabilities
-757
-98
-179
-170
-164
Interest and tax payments (incl. CVAE)
2018
+558
Repayment of lease liabilities
-8
EBITDA excl. Asset disposal
-36
-64
Change in operating WCR
Dividend and share buyback programmes
CAPEX Financial investments and other*
Change in non controlling interests
-918
2019
+€161m
▪ Decrease of net financial debt after its peak on 30 June 2019 (€1,120m)
* Financial investments and other mainly correspond to Guy Hoquet l’Immoblier and Nexity Conseil et Transaction sale prices (net of cash disposed), to external growth (Accessite) and to new financial investments
2.3xEBITDA after leases
12-month rolling basis (€403m)
2.5xEBITDA after leases
(indicative targetgiven in June 2018)
(in €m)
15Nexity / 2019 Full-year Results
2019 Cash-flow statement
In €m FY 2019 FY 2018
Cash flow from operating activities before financial and tax expenses 544 508
Cash flow from operating activities after financial and tax expenses 377 350
Change in operating WCR (excluding tax) (98) (102)
Change in tax-related working capital, dividends from equity-accounted investments and other 11 22
Net cash from / (used in) operating investments (60) (48)
Free cash flow 230 222
Net cash from / (used in) financial investments 6 (73)
Repayment of lease liabilities (170) (104)
Dividends paid by Nexity SA (138) (140)
Net cash from / (used in) financing activities (excluding dividend) 414 46
Change in cash and cash equivalent 341 (50)
2019Business activity
2019 Business activity
Individual Clients
Residential Real Estate
18Nexity / 2019 Full-year Results
Residential Real Estate: an undersupplied market
Estimated market share: 14.2% in 2019,
up 3 pts since end-2017
Reservations growth up 19% since end-2017
Normative margin: 10%
Mortgage ratesDemographicsStability of tax incentives
Increase in construction costs and land prices
Municipal elections approaching
20142011 20182013 20152012 20172016
121,100
2019e
105,900 108,600 107,500
125,600
153,900168,600
157,600 ~154,000
-2%
Retail sales Bulk sales
KEY FIGURES
INDIVIDUAL CLIENTSResidential Real Estate
Sources: Commissariat Général au Développement Durable (Base Sit@del2) for retail sales – Fédération des Promoteurs Immobiliers for bulk sales– Nexity estimations for 2019
SUCCESSFULL MULTISERVICES, MULTIPRODUCTS AND MULTIBRAND GROWTH STRATEGY
More than 32 products covering first-time homebuyers,
social housing and intermediate housing, themed housing and specific uses
External growthNew markets Patrimoine et Valorisation, Multi-
generational serviced residences, In-house growth projects
Partnerships Nexity Partners
19Nexity / 2019 Full-year Results
Dynamic Nexity Residential Real Estate new home reservations
4,634
2014 2017
21,837
15,893
2015
3,618
2016
6,600
4,757
2018
7,794
4,557
5,603
3,883
10,365
2019
11,741
18,35119,609
+18%in Q4 2019vs Q4 2018
715 773
951
922909
1,327
201720162014 2015
1,150
1,529
2018 2019
3,564
2,943
1,9242,285
3,9154,362 +15%
in Q4 2019vs Q4 2018
Q1 Q3Q2 Q4
+11%compared to 2018*
+11%compared to 2018*
▪ Total reservations: 24,566 units (incl. Subdivisions and international): +11% in volume and +13% in value• o/w Subdivisions: 2,088 units (+1%)
worth €177m (+5%) • o/w International: 641 units (x1,8)
worth €100m (x3,1)
(in volume - in units, including Ægide from 1st July 2018)
(in value - in €m incl.VAT, including Ægide from 1st July 2018)
INDIVIDUAL CLIENTSResidential Real Estate
* +8% by volume and by value on a like-for-like basis
▪ Individual Investors: 45% of total sales, up 19% compared to 2018 (o/w 55% using Pinel scheme)
▪ Strong growth of serviced residences: up 53% compared to 2018 and representing 29% of total sales
2019 Business activity
Individual Clients
Real estate Services to Individuals
21Nexity / 2019 Full-year Results
Serviced residences: a unique business model
STUDENTS2.5 million students in France
Addressable market: €6.5Bn82% of the market is widespread
Key figures124 residences representing more than 15.000 units
95% average occupancy rate
€566 average revenue per resident
12% normative current operating margin level
DEVELOPER OPERATOR
CLIENTINVESTOR
(Individual or Institutional
Investors)
VEFACLIENT
SUB-LESSEEStudentSenior
LEASE
SENIORS6 million senior people over 75 years old
60,000 housing units in independent living facilities
85% of the market is widespread
Key figures100 residences representing more than 11.700 housing units
84% average occupancy rate
€1.683 average revenue per resident excl. VAT (rent and services)
7% normative current operating margin level for residences opened since 2 years
or more
INDIVIDUAL CLIENTSServices to individuals
22Nexity / 2019 Full-year Results
Senior Serviced Residences
** Indicative figures based on a development margin rate of 10% and an average operation of 120 units
Revenue, EBITDA and current operating profit breakdown by residences’ maturity
▪ 5% operating margin for residences opened more than 2 years ago▪ Operating margin growth expected, up to 7% of revenue
Change in average monthly revenue per resident
Growth in the number of residences
N+7N+6 N+…N+1N N+4N+2 N+3 N+5 N+8 N+9 N+10 N+11 N+12 N+… N+…
1.81.6
Recurring result generation during the lease almost equal to the real estate development margin**
∑ current operating profit generated during the management phase (rent + condominium management + other services) - In €m
2019 2018 Change
Rent €732 €708 +3%
Services €951 €878 +8%
Total €1.683 €1.586 +6%
INDIVIDUAL CLIENTSServices to individuals
51 58
3242
20182011 20142012 2013 2015 2016 2021e 2022e2020e
72
2019 2023e
15
2017
59 ~70%
2024e
25
83
36 4152
~200
100
Residences opened more than 2 years ago Residences opened less than 2 years ago
In €mNumber of
residences
Average
occupancy
rate
Revenue EBITDA
Current
operating
profit
Residences opened more than 2 years ago* 58 95% 140 52 7
Residences opened less than 2 years ago* and International 42 72% 81 21 -16
Total Serviced residences 84% 221 73 -9
* Domitys France
23Nexity / 2019 Full-year Results
A wide variety of Real Estate Services to Individuals
Key figuresMore than 880,000 units under management at end-2019 :
709,000 for condominium management and 175,000 for
rental management
+46%
1,2 millions
PROPERTY MANAGEMENT FOR INDIVIDUALS- Condominium management- Rental management- Additional services (insurance,…)
BROKERAGE AND FRANCHISE- Additional services (brokerage,…)
DISTRIBUTION
Key figuresMore than 4,500 sales in 2019
of which 66% sold on behalf of third parties
Fragmented market* >1.000.000 transactions in 2019 on the existing homes market*
3.500 agencies in the 5 first franchise networks
Numerous players: developers,
contact-plateforms between developers, bubsidiaries of banking groups, wealth management companies
Key figures898 Century21 agencies in 2019, up 4% compared to end-2018
Deeds of sales up 8% compared to end-2018
INDIVIDUAL CLIENTSServices to individuals
* Source : Xerfi Les armes des administrateurs de biens face aux bouleversements réglementaires / dec. 2019 ; estimate Notaires de France
2019 Business activity
Commercial Clients
25Nexity / 2019 Full-year Results
Commercial Real Estate: a dynamic market*
Availability of capital
New uses
Monetary policy remains accomodative
Tightening supply
Asset rotation
Construction costs / Land cost
Q2Q1 Q3 Q4
0
5
10
15
20
25
30
35
40
2011
~€36 Bn
201320102006 2007 20122008 2009 2014 2015 2016 2017 2018 2019
* Source: CBRE MarketView Investment and Île-de-France Offices Q4 2019
▪ Vacancy rate: 4.7% in Paris region returning back to the 2007 low point, limiting take-up to 2.3 million sq.m in 2019 (down 10% over 1 year), but up 1% compared to the 10-year average
COMMERCIAL CLIENTSCommercial Real Estate
26Nexity / 2019 Full-year Results
Business potential* and order intake
190
403 356
151 183 216
250 166
305402
2014 20172015 2016 2018 2019
349
521
Paris region Rest of France
▪ €155m signed in Q4 2019 in the rest of France exclusively
▪ €181m signed on wood-frame projects
▪ Backlog of €456m equivalent to 14 months of activity(Commercial Real Estate revenue on a rolling 12-month basis), compared to €308m at end-December 2018
28% 23%
48%
2018
52%
2017
72% 77%
2019
1,550
2,796 2,966
+6%
Paris region Rest of France
▪ Strong visibility of around 8 years of activity▪ Sharp acceleration anticipated in revenue starting 2020
Business potential for Commercial Real Estate(in €m)
Order intake(in €m excl. VAT)
2019 target** met
* Corresponds to the total volume of potential business at any given moment, expressed as an estimated revenue excluding VAT, within future Commercial Real Estate 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**Guidance 2019 : order intake volume in Commercial Real Estate at least equal to 2018 (€349m excl. VAT)
COMMERCIAL CLIENTSCommercial Real Estate
27Nexity / 2019 Full-year Results
La Garenne-Colombes (Hauts-de-Seine)
Engie: a financial and strategic development partnership
▪ Acquisition with Engie in July 2018 of a 9-hectares plot of PSA group industrial land in La Garenne-Colombes (92)
▪ Conclusion of a technological partnership to develop with Engie an ambitious general interest urban project in terms of energy transition
▪ Complex mixed programme of offices, housing, shops and a hotel, a new PSA branch, and community facilities
▪ Creation of Engie’s eco-business park for 136,000 sq.m, the largest private project in Greater Paris
▪ Just under € 1 billion in revenue for Nexity's share in the eco-business park
13 July 2018
Land acquisition
2019/2020
Building permits preparation
Permissions obtention
2020
Scheduled signing of the off-plan sale (VEFA)
2021
2022
2023/2024
Scheduled delivery of the Engie campus
2024
Dec.2019Purchase
commitment signing with Swiss Life Asset
Managers
COMMERCIAL CLIENTSCommercial Real Estate
28Nexity / 2019 Full-year Results
Main orders of the period
TÉRÉNÉO – GRAND CARRÉSainghin en Melantois (Nord) Wood-frame offices – 7,000 sq.mDelivered
EVIDENCESaint-Ouen (Seine-Saint-Denis) Offices – 16,000 sq.mScheduled delivery: 2020
ECO CAMPUS DELOITTEBailly-Romainvilliers (Essonne) Eco-campus – 22,000 sq.mScheduled delivery: 2021
LYON VAISELyon (Rhône) Offices – 13,300 sq.mScheduled delivery: 2022
COMMERCIAL CLIENTSCommercial Real Estate
29Nexity / 2019 Full-year Results
1,2 millions+46%
1,2 millions
* Source: Xerfi : le marché du property management à l’horizon à 2022 / July 2019 ; Bureauxàpartager.com, « Indice du coworking » 2019
~15 operators with units under management above 2 million sq.m*
Nexity #1 in property management in 2019*
Property Management key figures20 million sq.m under management at end-2019 (up 5%
compared to end-2018)
Of which 1 million sq.m for Accessite (Retail premises)
New service offering
Revenue: €62m in 2019, up 13% LFL compared to 2018
MANAGEMENTPROPERTY MANAGEMENT- Commercial Real Estate advisory- Space planning
Real Estate services to Companies
COMMERCIAL CLIENTSReal Estate Services to Companies
Morning Coworking key figures
22 coworking spaces at end-December 2019
More than 60,000 sq.m (up 35% compared to end-2018)
6,700 workstations
Revenue: x6 compared to 2016 (€30m in 2019)
1,700 spaces in France, of which 35% in the Paris region and 23% inside Paris*
Nexity one of the leaders in the Paris region in 2019*
OPERATIONCOMPLETE OFFERING
2019 Business activity
Local Authority
Clients
31Nexity / 2019 Full-year Results
Urban regeneration
ASNIÈRES (92) – 43,300 sq.m
GrandParis
LE BLANC-MESNIL (93) – 20,500 sq.m
GrandParis
BRY-SUR-MARNE / VILLIERS-SUR-MARNE (94) – 140,000 sq.m
GrandParis
SAINT-OUEN (93) – 43,900 sq.m
GrandParis
MONTREUIL ACACIAS (93) 48,240 sq.m (Nexity’s share)
GrandParis
BORDEAUX BELVÉDÈRE (33)40,200 sq.m (Nexity’s share)
▪ Portfolio at 31 December 2019*: ~540,400 sq.m (down 15% vs 31 Dec. 2018) ; Sales of development rights for around 137,000 sq.m
SOLLIÈS-PONT (83) – 29,500 sq.m SAINT-PRIEST (69) – 59,650 sq.m
* Floor areas are provided for information purpose and may be subject to adjustment once administrative authorisations have been obtained
LA GARENNE-COLOMBES (92) 99,960 sq.m (Nexity’s share)
GrandParis
VILLES & PROJETS
LAND REDEVELOPMENT INVESTMENT FUND
LAND BANK▪ €120m at end-December 2019, stable comapred to 2018 –
Due to stiff competition and the rise in land prices, the Group has
had to set up a strategy to take positions on high potential plots
SAINT-JEAN-DE-LA-RUELLE (45) 14,200 sq.m (Nexity’s share)
Athletes’ village in SAINT-OUEN (93) 21,200 sq.m (Nexity’s share)
2019 portfolio entries
visuel
▪ A first parcel of land located in Hauts-de-Seine (92) has been
acquired at end-2019 by Terrae Optimae 1 alternative
investment fund (in which Nexity holds a minority stake)
GrandParis
LOCAL AUTHORITY CLIENTS
Outlook
33Nexity / 2019 Full-year Results
Backlog and total business potential at 31 December 2019
€15.3bn
Commercial Real Estate
€3.0bn
New homes
€10.6bn
Subdivisions
€1.2bn
International
€0.6bn
ResidentialReal Estate
€12.4bn
55,400 units 5,100 units14,500 units
75,000 units
* 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**Corresponds to the total volume of potential business at any given moment, expressed as a number of units and/or estimated revenue excluding VAT, within future Residential Real estate projects (new homes, subdivisions and International) and Commercial Real Estate 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 the Group’s current supply for sale, its future supply corresponding to project phases not yet marketed on purchased land, and projects not yet launched associated with land secured under options
Development business potential**
465
308
3,526
Dec. 2017restated
4,469
4,161
Dec. 2018
456
4,640
Dec. 2019
5,095
3,991
+14%
Residential Real Estate Commercial Real Estate
Backlog*(in €m)
34Nexity / 2019 Full-year Results
2020 targets and 2021 ambition
(1) Pending the decision of Nexity’s Board of Directors and approval of the Shareholders’ Meeting
2017 2021e20192018
3.6
2020e
4.14.5
>5.3CAGR +12%
461
523573
2019 2020e2017 2018 2021e
>680CAGR +11%
2020 target 2021 ambition
▪ Revenue of at least €5.3bn (compound annual growth of +10% since2017)
▪ EBITDA of at least €680m (compound annual growth of +10% since2017) around 45% of which to be generated by Services businesses
▪ Dividend per share of at least €2.70(1) relative to 2020 and 2021 financial periods
REVENUEIn €bn
EBITDAIn €m
▪ Revenue to grow by more than 10%
▪ EBITDA and current operating profit to grow by +10%
▪ Dividend paid in 2020(1) at €2.70 per share
35Nexity / 2019 Full-year Results
3.2%
14.6%
69.4%
5.3%
6.4%
(1) /w treasury shares: 606,.419 shares (1.1%)
(2) New Port: 8.1%
(3) o/w FCPE (Nexity Actions and Nexity Levier 2017): 2.7%
56,129,724 shares(1)
Nexity’s ownership structure
31 DECEMBER 2019
5.3%
14.6%
3.2%
6.4%
69.4%
FCPE and other employees (3)
A. Dinin, New Port (2) and other Nexity’s managers belonging to the concert group
Crédit Mutuel Arkéa
Crédit Agricole Assurances
Free float
Concert group19.9%
Appendix
37Nexity / 2019 Full-year Results
Leadership positions in development and in services activities(1)
(1) Calculated on the basis of market data for 2018
(2) Market share over the 2014-2018 period for offices in the Paris region
(3) Including Century 21
(4) Market share calculated on revenue
(5) Market share calculated on number of locations opened in the Paris region (250 locations – source Cushman & Wakefield)
N0.3IN COMMERCIAL REAL ESTATEMarket share: 6.2%(2)
N0.1IN PROPERTY MANAGEMENT
based on revenue• Condominium managementMarket share: 7.8%•Rental managementMarket share: 8.3%•BrokerageMarket share: 4.6%
N0.2IN PROPERTY MANAGEMENT FOR INDIVIDUALS(3)
Market share: 12.4%• Retail sales: 9.8%• Bulk sales: 24%
N0.1 IN RESIDENTIAL REAL ESTATE
N0.1IN SERVICED RESIDENCES
• StudentsMarket share: 14.8%• Seniors Market share: 21.1%
N0.1IN COWORKING SPACES IN THE PARIS REGION
Market share: 8%(4)
Grand Paris’ market share(Paris region): 15.4% (Reservations in the Paris regionrepresent 44% of the expectedrevenue from reservations)
38Nexity / 2019 Full-year Results
Long term trends for housing
Estimated number of homes required per year by 2040(in thousands of units)
Obsolescence
Plugging the constructionshortfall
Regional population shifts
2040according to Nexity
Growth in number of households
DEMAND FOR AT LEAST 400,000 NEW HOMES PER YEAR BY 2040, VS AN AVERAGE OF 337,000 RESERVATIONS BETWEEN 2012 AND 2018
137 128 104 103 113 135 120
101 117107 109 124 113 109
84 8583 100
127 130128
322
20172012 2013 2014 2015 2016 2018
330294 312
364 378357
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 des logements 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 and 2018
4 millionpeople in substandard housing and 12.1 million people in fragile situations(1)
32 millionhouseholds by 2030, +4 million compared to 2015 (2)
42%of single people households by 2030,13 million (2)
(1) Annual report #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 Références
25%share of housing spendings in householdsconsumption expenditure in France (4)
€22,680Average annual income (median) needed to buy a 2 room apartment of 43 sq.m in France(3)
€18,972Average annual income (median) of a single adult in France, ie €1,581 / month(3)
39Nexity / 2019 Full-year Results
Revenue from contracts with customers - residential
▪ Percentage-of-completion principle for real estate development activities in France: percentage of completion must be calculated based on all inventoriable costs (including land)
40Nexity / 2019 Full-year Results
Revenue from contracts with customers - commercial
M3M0 M18
37.5%
61.1%
M6 M9 M12 M15
100.0%
M21
Off-plan sale agreed
Delivery
39
24
38
Q4 N N+1 N+2
4753
N+2Q4 N N+1
RevenueRevenue
Pattern of revenue recognition for a typical commercial development in the inner suburbs of Paris (land: 30% of cost)
Impact of the month in which an agreement is sealed (as a % of development revenue)
SCENARIO 1:AGREEMENT IN Q4 N
Difference between two scenarii: -38 +29 +8
SCENARIO 2:AGREEMENT IN Q1 N+1
▪ Faster recognition of revenue and margins with corresponding decrease in the backlog
▪ Operating profit more closely correlated to fluctuations in business activity
41Nexity / 2019 Full-year Results
Cash flow profiles for VEFA off-plan sales
RESIDENTIAL REAL ESTATE for individual clients
RESIDENTIAL REAL ESTATE for social housing operators, with progress payments
COMMERCIAL REAL ESTATE
Assumptions by Nexity, basis of 100
Cash outflows
Cash inflows
Net cash
Purchase of landPurchase of land Purchase of land
110
94
62
28
4
-100
-85
-71
-56-38
-25
-5-2
-29
Q4Q3Q2Q1 Q8
10
Q7
9
Q6
-9
Q5
107
95
70
35
55
-100
-78
-64
-49-35
-20 -30-15
00
Q8
7
Q7
17
Q6
6
Q5
-14
Q4Q3Q2Q1
110
99
83
665555
-100
-84
-68
-52
-36
-21
0014
Q4
19
Q3
34
Q2Q1
15
Q5 Q7Q6
10
Q8
15
42Nexity / 2019 Full-year Results
#
Leases
Figures at 31 December 2017
# Scope: Leases of buildings used for business operations, IT equipment, future 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 IMPROVEMENT IN CASH FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL AND IN EBITDAINCREASE IN DEBT
43Nexity / 2019 Full-year Results
Client mix
First-time buyers: +5%
Individual Investors: +19%
Other homebuyers : -28%
InstitutionalInvestors: +13%
Social landlords: +9%
Bulk sales: +11%(LFL: +9%)
Retail sales: +12%(LFL: +5%)
17%
45%
17%
19,609
9%
24%
2017
44%
18%
5%
23%
13%
42%
13%
4%
2018 2019
23%
3%
18,351
21,837
Volume(in units, including Ægide from 1 July 2018)
▪ Individual Investors: 45% of total sales, up 19% compared to 2018 (o/w 55% using Pinel scheme)
▪ Strong growth of serviced residences: up 53% compared to 2018 and representing 29% of total sales
INDIVIDUAL CLIENTSResidential Real Estate
44Nexity / 2019 Full-year Results
Breakdown by geography for Nexity new home reservations
Paris region
Rest of France
▪ Retail sales: up 12% of which +12% in Paris region, +12% for the rest of France▪ Bulk sales: up 11% of which +18% in Paris region, +6% for the rest of France
62%63%
37%
61%
38%
39%
2017 2018 2019
18,35119,609
21,837
+11%
44%
56%
2018
46%
54%
44%
2017
56%
2019
3,5643,915
4,362
+11%
+14%
+10%
+11%
+11%
Value(en €m incl. VAT, including Ægide from 1 July 2018)
Volume(in units, including Ægide from 1 July 2018)
INDIVIDUAL CLIENTSResidential Real Estate
45Nexity / 2019 Full-year Results
Nexity new homes: price trends
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
265.8
192.0184.2
257.4
250.5
261.5
213.6
256.8
218.0
196.7
267.3
264.8
223.8
206.8
265.4
231.0
Rest of France: +5.1%
Paris region: -0.6%
Paris region excl. Paris: +0.2%
France: +3.2%
Retail slaes 2018 2019 Change
Average home price incl. VAT (sq.m.) 4,045 4,223 +4.4%
Average surface area per home (sq.m.) 55.3 54.7 -1.1%
Average price incl. VAT per home (€k) 223.8 231.0 +3.2%
▪ Decrease in average surface area mainly linked to the increase of sales to individual investors (up 19%)
Average prices(in thousand of euros, excl. PERL, iSelection, Ægide, International and bulk sales)
INDIVIDUAL CLIENTSResidential Real Estate
46Nexity / 2019 Full-year Results
Nexity new homes: supply for sale
4,202
2010
26%
52%
2%
2009
9,005
46%
2008 2011 2012 20172013 2014
6,773
2015
3,542
2016
2%
67%
31%
2018
73%
2019
1%
6,988
3,663
5,0584,293
5,313
6,438
8,651 8,859
-2%
New homes project phase New homes under construction Completed new homes
* Take-up period: available market supply / reservations for the last 12 months, expressed in months
▪ Take-up period * of 4.9 months in 2019 (compared to 5.5 in 2018)
▪ Completed new homes: 104 unitsat end-2019
▪ Pre-sales rate: 73% at end-2019 (compared to 69% at end-2018)
Curent supply for sale(in units, excl. International and including Ægide from 1 July 2018)
INDIVIDUAL CLIENTSResidential Real Estate
47Nexity / 2019 Full-year Results
2.5 YEARS OF BUSINESS ACTIVITY
Business potential* for new homes
72%
28%
41%
2009 20112010 2012 2013 2015
53,602
2016 2017
44%
56%
2018
59%
201920142008
22,82419,057
21,285 23,143 23,941 23,100 24,832
34,453
41,813
47,560
55,354
+3%
Rest of France Paris region
(in units, excl. International and including Ægide from 1 July 2018)
▪ Business potential represents €10.6bn in potential revenue excl. VAT at 31 December 2019, or 3.7 years of potential revenue (rolling 12-month basis)
INDIVIDUAL CLIENTSResidential Real Estate
* Corresponds to the total volume of potential business at any given moment, expressed as a number of units and/or estimated revenue excluding VAT, within future Residential Real estate projects (new homes, subdivisions and International), validated by the Nexity’s Investment Committee, under options or purchased land, in all structuring phases. This business potential includes the Group’s current supply for sale, its future supply corresponding to project phases not yet marketed on purchased land, and projects not yet launched associated with land secured under options
48Nexity / 2019 Full-year Results
Serviced Residences
124 residences and 15,400 managed units at end-2019
4 openings in 2019 in Villeneuve d’Ascq (Nord), Amiens (Somme), Toulouse (Haute-Garonne) et Malakoff (Hauts-de-Seine)
2 closings of residences during 2019 in Nice (Alpes-Maritimes) and Toulon (Var)
Rolling 12-month occupancy rate stands at 94.7% at end-2019 (compared to 92.9% at end-2018)
STUDENT RESIDENCES SENIOR INDEPENDENT LIVING FACILITIES
100 residences and 11,700 managed units at end-2019
17 openings in 2019
Rolling 12-month occupancy rate stands at 84,2% at end-2019 (compared to 82.5% at end-2018)
End-December 2019 average occupancy rate stands at 95% for the 58 residences opened more than 2 years ago (stable compared to end-December 2018)
▪ 21 openings in 2019 (above the target of more than 20 openings)
2019 targetmet
INDIVIDUAL CLIENTSServices to individuals
49Nexity / 2019 Full-year Results
Property management for individuals and Distribution
2016
726
172
898
2017
721
168
890
2018
721
175
897
2019
709
175
884
Condominium management
Rentalmanagement
* LFL churn in 2019: -1.5% (-1.4% at end-2018)
Century 21
-1.4%*
▪ 898 agencies in 2019 (up 4% compared to 2018)
919924 701
759
3,592
2017 2019
3,244
4,670
3,9113,590
2016 2018
4,163 4,514 4,293
+9%
iSelection PERL
▪ 2.528 reservations on behalf of third-parties at end-2019, up 4% compared to end-2018
Distribution – Total reservations(in units)
PMI – Units under management(in thousands of units)
INDIVIDUAL CLIENTSServices to individuals
50Nexity / 2019 Full-year Results
Athletes’ village – Saint-Ouen (Seine-Saint-Denis)
▪ The consortium composed of Nexity, Eiffage, CDC Habitat and Groupama wasselected as a winner in November 2019 for the sector E of the athletes’ villagelocated in Saint-Ouen-sur-Seine (Seine-Saint-Denis)
▪ ~53,000 sq.m total floor area comprising 525 housing units, an officebuilding, a childcare centre, and business and retail premises which will hostjust over 2,500 athletes in the summer of 2024
▪ Project reversibility that will host, starting in 2025, a new neighbourhood
▪ Project’s carbon footprint 75% smaller than for the London Olympics(resource-efficient building approach wood / low-carbon concrete)
LOCAL AUTHORITY CLIENTS
51Nexity / 2019 Full-year Results
Porte de Montreuil (Paris)
▪ The consortium composed of Nexity, Engie and CréditAgricole Immobilier was selected as a winner inSeptember 2019 to transform the Porte de Montreuildistrict of Paris into a carbon-neutral area starting in2023
▪ It reaffirms Nexity’s ability to win complex calls forproposals with strong commitments to corporate socialresponsibility
▪ It is part of the “Reinventing Cities” competitionlaunched by the C40 (and backed by the City of Paris)to promote greener, more sustainable urbandevelopment at sites in 15 major cities around theworld
LOCAL AUTHORITY CLIENTS
52Nexity / 2019 Full-year Results
« Inventer Bruneseau » - Projet « Nouvel R »
LOCAL AUTHORITY CLIENTS
▪ ~100,000 sq.m between Paris (75) and Ivry-sur-Seine (94), 25,000 sq.m of offices / 50,000 sq.m of housing units / 20,000 sq.m of retail premises
▪ Carbon footprint divided by 5 compared to the Parisian average
53Nexity / 2019 Full-year Results
Reconciliation between 2019 EBITDA and current operating profit
573
353+8-12
EBITDA 2019 Borrowing costs directly attributable to property developments
transferred from inventories (IAS 23)
Right-of-use leasedasset depreciation
-154
Leaseback margin
-45
Depreciation, amortisation
and impairment of fixed assets
Provision charges (-) / reversals (+)
of provisions
-16
Share-basedpayments
2019 Current Operating profit
-€220m
▪ €353m at 31 December 2019 (7.9% margin rate) compared to €373m at 31 December 2018 (9.0% margin rate)▪ Depreciation of right-of-use leased assets (under IFRS 16) in 2019 : €166m compared to €103m at end-December 2018
-94 -9 -32 +5 -14 -6523 373At
FY 2018
-€150m
(in €m)
54Nexity / 2019 Full-year Results
10.0%
7.9%8.9% 8.7%
11.0%
9.0%
20192018 20192018 20192018
8.9%8.7%9.3% 9.8%
12.3%10.5%
20192018 20192018 20192018
11.9%
9.7%
1.5%
11.1%
1.6%
8.9%
20192018 20192018 20192018
Indivudual Clients
Total(in % of revenue)
Development(in % of revenue)
Services(in % of revenue)
2019 Current Operating margin levels
Commercial Clients Group
Residential Real Estate Commercial Real Estate Total Development
Services to individuals Services to companies Total Services
55Nexity / 2019 Full-year Results
Change in development margins over the last 5 years
20162014 2015 20182017 2019
9%
10%
19%
15.4%
10.2%
18.5%18.1%
12.7%11.1%
Residential Real Estate(EBITDA margin in % of revenue)
201920152014 20182016 2017
19%
9%
10%
11.0%
8.7%
10.0% 10.2%10.7%
10.0%
Normative level
Commercial Real Estate(EBITDA margin in % of revenue)
Normative level
56Nexity / 2019 Full-year Results
Financial debt schedule before lease liabilities
38156(6)
20242020 202320222021 2025 2026 2027
413(1) 442(2)
26
582(3)
362(4)
134(5)
(1) Including €25m of bonds issued in May 2014 (2020)
(2) Including €146m of bonds isseud in May 2014 (2021)
(3) €270m of convertible bonds (incl. shareholders’ equity) issued in May 2016 (maturity date 1 January 2023) + €30m of bonds issued in June 2017 (2023)
(4) €121m of bonds issued in June 2017 / €200m of convertible bonds issued in March 2018 (2025)
(5) Including €84m of bonds issued in December 2019
(6) €156m of bonds issued in December 2019
▪ 32% of debt with maturity >5 years
▪ Average maturity: 3.7 years
▪ Cost of financing (debt drawn down): 2.3% at end-December 2019 (2.6% in 2018)
▪ Gross debt at 31 December 2019: €2,034m
1,557
120
357
€2,034m
Corporate borrowings Project related loansNEU CP
(in €m)
▪ Inaugural issue of a €240m Green Bond in December 2019: €84m maturing in 2026 and €156m maturing in 2027
57Nexity / 2019 Full-year Results
Breakdown into development and services
in €m2017
restated
2019
Realised
2018
Realised
2019
Realised
2018
Realised
2019
Realised
2018
Realised
2019
Realised
2018
Realised
Residential Real Estate 2.350 3.049 2.648 304 284 288 270 265 246
Commercial Real Estate 343 384 512 43 65 42 64 41 63
0 0
Development 2.693 3.433 3.160 346 348 329 334 305 309
Change +8,6% +17,4% -0,6% +15,6% -1,4% +16,6% -1,3% +12,2%
as a % of revenue 10,1% 11,0% 9,6% 10,6% 8,9% 9,8%
PMI, franchises, Property Management 416 426 428 92 74 73 57 57 46
Serviced residences, MorningCoworking 88 348 183 132 70 8 6 3 9
Distribution (PERL, Iselection) 369 290 359 31 56 30 55 35 53
Services 874 1.065 970 255 201 110 118 95 108
Change +9,7% +11,0% +27,1% +10,2% -6,4% -3,4% -12,3% +2,5%
as a % of revenue 24,0% 20,7% 10,4% 12,1% 8,9% 11,1%
Other activities 4 1 4 -29 -26 -37 -34 -47 -45
GROUP 3.571 4.499 4.135 573 523 403 418 353 373
Change +8,8% +15,8% +9,5% +13,5% -3,6% +9,7% -5,2% +10,3%
as a % of revenue 12,7% 12,6% 9,0% 10,1% 7,9% 9,0%
EBITDA
IFRS 16
EBITDA
(after leases)Current operating profitRevenue
58Nexity / 2019 Full-year Results
Capital employed at end-2019
In millions of euros
2019
Total
Non-current assets
Right-of-use
assets WCR Goodwill
Developement 1,071 34 45 992 -
Services 949 183 748 19 -
Other activities and not attributable 1,714 71 36 9 1,598
GROUP 3,734 288 828 1,019 1,598
In millions of euros
2018
Total
Non-current assets
Right-of-
use assets WCR Goodwill
Developement 973 39 43 891 -
Services 855 174 665 16 -
Other activities and not attributable 1.666 48 49 (10) 1,579
GROUP 3,494 261 757 896 1,579
59Nexity / 2019 Full-year Results
Dividend
2020*2014 2015 2021*2016 2018 20192017 2022*
2.0 2.02.2
2.4 2.5 2.52.7 ≥2.7 ≥2.7
~100% 71% 93%80%
Paid in:
in € per share
Payout ratio(as a % of EPS):
* Pending the decision of Nexity’s Board of Directors and approval of the Shareholders’ Meeting
Tél. : +33 (0)1 85 55 12 12
19, rue de Vienne 75 008 Paris