2020 HALF-YEAR RESULTS
Transcript of 2020 HALF-YEAR RESULTS
2020 HALF-YEAR RESULTS INVESTOR PRESENTATIONJULY 2020
2Nexity / Investor presentation – July 2020
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, notably due to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks described
in Chapter 2 of the Universal Registration Document filed with the AMF under number D.20-0280 on 9 April 2020, as modified by an
amendment filed with the AMF on 28 April 2020, could have an impact on the Group’s operations and the Company’s ability to achieve its
targets. Accordingly, the Company cannot give any assurance as to whether it will achieve its stated targets, 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.
Disclaimer
3Nexity / Investor presentation – July 2020
H1 2020 Financial performance
€163m ; -28%
€7m
Revenue
EBITDA
€1,716m ; -7% vs H1 2019
€50m
€1,381m (€2,268m incl. lease liabilities)
€1,309m ; +28% compared to 2019
Current operating profit
Net profit Group share
Net financial debt before lease liabilities
WCR
4Nexity / Investor presentation – July 2020
H1 2020 Business activity
Residential Real Estate
Services to individuals
Commercial Real Estate
Other KPIs
New home reservations in France • 9,451 units (stable compared to H1 2019)• €2,023m (+5% compared to H1 2019)
Order intake: €219m+59% compared to H1 2019
Serviced residences • Seniors (Domitys): + 7 residences (107 residences)• Students (Studéa): 124 residences
Backlog: €5.7bn, up +11% vs end-2019Business potential: €14.9bn
Property Management• Resilient activity (no churn in H1 2020)
5Nexity / Investor presentation – July 2020
Activity on construction sites
Implication of the public-health crisis (Covid-19) in H1 2020 New homes
▪ Construction sites operational after a halt
▪ Strong recovery of the business activity since the beginning of June: reservations, signing of notarial deeds
▪ Cash inflow with a very satisfactory performance in June
Notarial deeds – Retail sales
MayApr. JuneMar.Jan. Feb.
+43%
100
We
ek 1
3
We
ek 1
0
We
ek 1
We
ek 5
26%
We
ek 1
5
We
ek 2
0
We
ek 2
2
We
ek 2
5
We
ek 2
9
Gross reservations – Retail sales(base 100 in 2019)
100
53%
June
43%
Jan AprMarFeb May
Cash inflow / outflow(base 100 in 2019)
Inflow Outflow + Land
Lockdownperiod
Sub-activity: -57%
0
20
40
60
80
100
Jun. Jul.Jan. Feb. Mar. Apr. May.
2019 2020
6Nexity / Investor presentation – July 2020
Macroeconomic environment
Synthetic index – Household confidence
GDP Growth in volume – France
Sources: Observatoire Crédit Logement and Finance Active
Low interest rates5.07%
20
12
Q4
20
18
1.51%
20
08
20
14
20
11
20
10
Q2
20
19
20
09
20
13
2.20%
20
15
20
16
0.80%
20
17
-0.01%
1.25%
Q1
20
18
Q2
20
18
Q3
20
18
Q1
20
19
Q3
20
19
Q4
20
19
Q1
20
20
Q2
20
20
Mortgage loan rate (last month average rate) TEC 10 (average rate on the period)
108
80
108104
88
102
97
20
10
20
12
20
15
20
11
20
07
20
08
20
17
20
09
20
13
20
16
20
14
20
18
20
19
Jun
e
Source: INSEE
Unemployment rate Year-on year in %
7Nexity / Investor presentation – July 2020
Building permits and housing starts
Building permitsHousing starts
May
-17
May
-18
May
-20
May
-19
481,600 487,600
449,200
409,600
-8.8%
May
-17
May
-18
May
-20
May
-9
368,800
398,200
425,000
410,500
-10.2%
Sources: Commissariat Général au Développement Durable
▪ The 2nd round of local elections at the end of June should begin to alleviate the shortage of supply
▪ Changes in local government could prompt a reassessment of local urban planning policies, and a longer freeze in building permits grants
INDIVIDUAL CLIENTSResidential Real Estate
8Nexity / Investor presentation – July 2020
A market still undersupplied but impacted by the crisis
(in units)
201620142011 2015
108,600
20132012
163,600
2017 2018 2019 2020e
121,100
105,900 107,500
125,600
153,700
169,000162,600
~ 125,000
~ -25%
Retail sales Bulk sales
Demographics
Stability of tax incentives in supply-constrained areas
Support of institutional investors
Decrase in building permits amplified by thelockdown
Tightening of credit conditions (HCSF guidelines)
Economic situation of the construction industry
Taxation on housing
INDIVIDUAL CLIENTSResidential Real Estate
9Nexity / Investor presentation – July 2020
Nexity new home reservations in France
4,2885,603
7,794
3,506
8,252
H1 2020H1 2017 H1 2018
5,7944,634
3,618 3,883
H1 2019
3,657
9,486 9,451
StableIn H1 2020 compared to H1 2019
Q1 Q2
Reservations in volume(in units, including Ægide from 1st July 2018)
Breakdown by clients
▪ Total reservations (incl. Subdivisions and International): -1% in volume and +5% in volume
– o/w Subdivisions: 657 units (-20%) worth €55m (-17%) – o/w International: 239 units (+38%) worth €36m (x 2,3)
▪ Bulk sales (52% of H1 2020 reservations): Integration of 2,686 reservations with building permits that have been cleared made following the firm commitment signed with CDC Habitat in April 2020. The balance of around 4,800 units will be gradually recognized in reservations as final planning permissions are secured
▪ Retail sales (48% of H1 2020 reservations): Decrease linked to the decline of the business activity during the lockdown
First-time buyer: -26%
Individual investors: -35%
Other homebuyers: -51%
Institutional investors: X 4,1
Social landlords: -18 %
H1 2019
19%
9%
16%
48%
4%20%
36%
2%
32%
14%
H1 2020
9,486 9,451Bulk sales:
+85%In H1 2020 compared to H1 2019
Retail sales:
-33%In H1 2020 compared to H1 2019
INDIVIDUAL CLIENTSResidential Real Estate
10Nexity / Investor presentation – July 2020
Nexity new homes: price trends
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
264.8
223.8
192.0
261.5267.3
196.7
218.0
256.8
206.8
265.8
265.4
231.0
Average prices(in thousand of euros, excl. PERL, iSelection, Ægide, International and bulk sales)
Retail sales H1 2019 H1 2020 Change
Average home price incl. VAT (sq.m.) 4,144 4,286 +3.4%
Average surface area per home (sq.m.) 54.9 56.5 +2.9%
Average price incl. VAT per home (€k) 227.3 242.1 +6.5%
Rest of France: +5.1%
Paris region: -0.6%
Paris region exl. Paris: +0.2%
France: +3.2%
Average price trends by regionIn €k incl. VAT / home
H1 2019 H1 2020 Change
Paris region 260.3 292.3 +12.3%
Paris region exl. Paris 259.7 292.2 +12.5%
Rest of France 202.6 208.1 +2.7%
France 227.3 242.1 +6.5%
INDIVIDUAL CLIENTSResidential Real Estate
11Nexity / Investor presentation – July 2020
Nexity new homes: supply for sale
2%
2011
5,058
9,005
4,202
46%
2008
5,313
2009
3,663
20162010 2012 2019
4,293
2013 2015 2017 2018
6,438
1%
26%
73%
1%
73%
2014
8,651
52%
26%
H1 2020
6,988
3,542
6,773
8,859
7,097
-20%
Current supply for sale(in units, excl. International and including Ægide from 1 July 2018)
New homes in project phase New homes under construction Completed new homes
▪ Very high pre-sales rate: 80% at end-June 2020 (compared to 74% at end-June 2019)
▪ Take-up period* of 3.9 months at end-June 2020 (compared to 5.0 in H1 2019 and 4.9 at end-2019)
▪ Completed new homes: 71 units at end-June 2020
Limited launches during H1 2020 (lockdown and local elections)
INDIVIDUAL CLIENTSResidential Real Estate
* Take-up period: available market supply / reservations for the last 12 months, expressed in months
12Nexity / Investor presentation – July 2020
Backlog and business potential at 30 June 2020
* 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 revenue excluding VAT) within future projects in Residential Real Estate (New homes, Subdivisions and International) validated by the Group’s Committee, inall structuring phases, this business potential includes the Group’s current supply for sale, its future supply (project phases not yet marketed on purchased land, and projects not yet launched associated with land secured through options)
Business potential**(in units, excl. International and Subdivisions, including Ægide from 1 July 2018)
4,161
31 Dec. 2018 31 Dec. 2019 30 June 2020
4,6405,285
+14%
Backlog*
201820172015
35%
2016
41%
59%
2019 H1 2020
65%
34,453
41,813
47,560
53,602 55,35452,367
-5%
Rest of France Paris region
▪ Business potential represents €10.1bn potential revenue excluding VAT at 30 June 2020
▪ Growth explained by stability of reservations during H1 2020 and by a lack of technical progress during the lockdown
(in €m, incl. Subdivisions)
INDIVIDUAL CLIENTSResidential Real Estate
13Nexity / Investor presentation – July 2020
Acquisition of
▪ No revenue contribution during Q2 2020 (Revenue recognition mostly at the resale of the land and current model oriented toward bulk sales)
Ros
tock
Düs
seld
orf
(Fro
sch
kön
igw
eg)
▪ Nexity enters the attractive German residential market
— Size, sustainable growth potential, fragmentation, legal framework, acceptable level of risk and resilience during the health crisis
▪ Acquisition of 65% of the capital of pantera AG (March 2020) by Nexity, with 35% retained by Mr. Michael Ries, Founder and Managing director of the company
▪ pantera
— A medium-sized and agile residential developer
— Focused on serviced residences (“micro-apartments”) with additional capabilities, potential expansion of senior residences
— Multi-regional
— Current model mostly “conceptional” (resale of land plots after adding value, notably by obtaining planning and building permissions)→ Transition towards an integrated business model (covering the full real estate development value chain)
— Project pipeline (on secured plots): 0.4 Bn EUR (including JVs), 0.23 Bn (100% owned SPVs)
14Nexity / Investor presentation – July 2020
Property management for individuals and distribution
2018
721
175
897
2019
709
175
884
H1 2020
709
175
884
Condominium management
Rental management
PMI – Units under management(in thousands of units)
Distribution – Total Reservations (in units)
stable
277
H1 2020
2,000
H1 2019
216
1,407
2,277
1,623
-29%
iSelection PERL
▪ Activity virtually at a standstill during the lockdown, substantial recovery in June▪ 889 agencies at end-June 2020 (compared to 898 in end-2019)
Franchise network – Century 21
INDIVIDUAL CLIENTSReal Estate Services to Individuals
▪ Distribution activities: decrease in reservations linked to the lockdown period
15Nexity / Investor presentation – July 2020
Serviced Residences
124 residences, and 15,300 managed units at end-June 2020
Occupancy rate in June 2020 stands at 83% (compared to 85% in June 2019)
STUDENT RESIDENCES SENIOR INDEPENDENT LIVING FACILITIES
107 residences, and 12,500 units managed at end-June 2020
7 new residences opening during H1 2020
End-June 2020 rolling 12-month occupancy rate stands at 84.9% (compared to 84.2% at end-December 2019)
Occupancy rate*
60
70
80
90
100
NovMay JulyJan AugFeb AprilMar June Sept Oct Dec
2019 H1 2020
5872
42
35
2015 20182011 2012 2013 2014
107
41
2016 2017 2019 H1 2020
15
25
36
5259
72
83
100
Residences opened for more than 2 years Residences opened for less than 2 years
** Occupancy rate at end-March 2020 stands at 95% for the 72 residences opened for more than 2 years*Occupancy rate end of the month
INDIVIDUAL CLIENTSReal Estate Services to Individuals
16Nexity / Investor presentation – July 2020
Business potential* and order intake
Order intake(in €m excl. VAT)
33 3341
105214
H1 2018 H1 2019
5
H1 2020
74
138
219
+59%
Paris region Rest of France
▪ Sale of Influence 2.0 in Saint-Ouen (Seine-Saint-Denis), occupied by the Île-de-France Region (Buyer BNPP REIM)
▪ €373m Backlog at end-June 2020 compared to €456m at end-2019
26%
2019
72%
28%
2018
77%
23%
74%
H1 2020
2,796 2,966 2,803
-5%
Rest of FranceParis region
Business potential for Commercial Real Estate at 30 June 2020(in €m)
▪ Integrate La Garenne-Colombes project for ~€1bn (Nexity’s share), under option since Q4 2019 and scheduled to be sold at the end of 2020
* Corresponds to the total volume of potential business at any given moment, expressed as a number of units and/or revenue excluding VAT validated by the Group’s 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, its future supply (project phases not yet marketed on purchased land, and projects not yet launched associated with land secured through options). The number of years is based on the revenue on a rolling 12-month basis
COMMERCIAL CLIENTSCommercial Real Estate
17Nexity / Investor presentation – July 2020
Real Estate services to Companies
11.510,6
8.0
11.4
2018
8.0
2019
8.0
H1 2020
19.418.6 19.5
-0.2%
Property Management(in millions of sq.m under management)
Rental management Technical management
▪ 22 coworking spaces at end-June 2020
▪ More than 55,000 sq.m (down 8% compared to end-2019)
▪ ~6.300 workstations
▪ End-June 2020 occupancy rate stands at 77% (compared to 93% at end-June 2019)
Financial occupancy rate H1 2020
60
65
70
75
80
85
90
95
100
MarJan Feb Apr May June
COMMERCIAL CLIENTSReal Estate services to Companies
18Nexity / Investor presentation – July 2020
H1 2020 Results
in millions of euros H1 2020 H1 2019 % Change
Revenue 1,716.1 1,840.4 -7%
Change -6.8% -55.5%
EBITDA 163.5 226.4 -28%
as a % of revenue 9.5% 12.3%
Leases (90.1) (81.7) 10%
EBITDA after leases 73.3 144.7 -49%
as a % of revenue 4.3% 7.9%
Current operating profit 50.2 125.4 -60%
as a % of revenue 2.9% 6.8%
Financial income/(expense) (36.0) (37.4) -4%
Income tax (5.8) (31.9) -82%
Share of profit/(loss) from equity investments and non-controllong interests (1.9) (3.8) -50%
Net profit Group share 6.6 52.2 -87%
19Nexity / Investor presentation – July 2020
H1 2020 Revenue and lockdown estimated impacts
229
354
1 -380
1,611
H1 2019
+130
+170
portfolio impact* COVID impact portfolio impact*
-50
COVID impact
1,362
H1 2020
1,8401,716
-7%
Individual Clients
Commercial Clients
-15%
+55%
Individual Clients: -€250m Commercial Clients: +€120m
▪ Estimated Covid impact of around -€430m on revenue
* Portfolio impact corresponds to the growth in business activity carried over for Individual Clients (Increase of the backlog of Residential Real Estate at 31 December 2019, increase in the number of serviced residences for Real Estate Services to Individuals) and for Commercial Clients (sale of the completed Influence 2.0 in April 2020, with all the revenue being recognised by Commercial Real Estate upon the sale, and the increase of the number of coworking spaces for Real Estate Services to Companies)
(in €m)
20Nexity / Investor presentation – July 2020
H1 2020 EBITDA and margin rates
-10 -7
61(17.2%)
H1 2019 H1 2020H1 2019 H1 2020H1 2020 H1 2020H1 2019
226(12.3%)
H1 2019
209(13.0%)
110(8.1%)
27(11.8%)
163(9.5%)
-€99m
+€34m
+€3m
-63€m
Individual Clients Commercial Clients Group
(in €m and in %)
Commercial Real Estate: €53m, 17.5% margin▪ Sale of the Influence 2.0 building and good
progress on ongoing projects
Residential Real Estate: €27m, 2.8% margin▪ Overhead costs not rebilled
Services to Individuals: €83m, 20.1% margin▪ High comparison base (capital gain on
the Guy Hoquet l’Immobilier disposal in H1 2019)
Other activities
21Nexity / Investor presentation – July 2020
Reconciliation between H1 2020 EBITDA and current operating profit
(in €m)
163
50
-82
H1 2020EBITDA
Right-of-use leased asset depreciation
-24
Provision charge (-) / reversals (+)
of provisions
Depreciation, amortisation
and impairment of fixed assets
H1 2020 Current Operating Profit
+1 -8
Share-based payments
-€113m
▪ €50m at 30 June 2020 compared to €125m at 30 June 2019▪ Depreciation of right-of-use leased assets (under IFRS 16) in H1 2020: €82m (compared to €76m at end-June 2019)
-76 -20 +2 -7226 125At
H1 2019
-€101m
22Nexity / Investor presentation – July 2020
Simplified balance sheet at 30 June 2020
259
1,666
803
101
1,664
1,381
887
1,309
Goodwills
Other assets
Right-of-use leased assets
WCR
Total net debt: €2,268m
Provisions
Equity(incl. non-controlling interests)
Net financial debtbefore lease liabilities
Lease liabilities(IFRS 16)
(in €m)
ASSETS EQUITY AND LIABILITIES
23Nexity / Investor presentation – July 2020
Change in H1 2020 Working Capital Requirement (WCR)
875
90
108
120+56
+15054
Individual ClientsInternational
2019
+18
Individual ClientsFrance
Commercial Clients
+66
Other Activities(incl. Income tax)
1,081
H1 2020
1,019
1,309
+€290m
Individual Clients: +€206m
Other Activities(incl. Income tax)
Individual Clients Commercial Clients
▪ Residential Real Estate in France: BFR to Backlog ratio comparable to its historical levels (around 20%)
(in €m)
24Nexity / Investor presentation – July 2020
Change in net financial debt before lease liabilities
-918
-226
-89
-130
-116
+165
2019 EBITDA
-32
Change in operating WCR
Interest and tax payments
-35
Repayment of lease liabilities
CAPEX Dividend and share buyback programmes
External growth
-1,381
30 June 2020
- €463m
▪ The Group’s cash position remains very strong, with €873m in cash at 30 June 2020, and €355m in undrawn authorized corporate credit lines
▪ Nexity has secured an exemption from all of its creditors and bondholders from its undertaking to respect its 3.5x leverage ratio threshold; thisexemption will apply until the approval of the 2021 financial statements
▪ At 30 June 2020, Nexity was still in compliance with the 3.5x limit on its leverage ratio (3.3x) according to bank definitions
(in €m)
25Nexity / Investor presentation – July 2020
H1 2020 Cash-flow statement
In millions of euros H1 2020 H1 2019
Cash flow from operating activities before financial and tax expenses 160.2 206.6
Cash flow from operating activities after financial and tax expenses 119.4 142.1
Change in operating WCR (excluding tax) (231.5) (209.4)
Change in tax-related working capital, dividends from equity-accounted investments and
other11.0 (23.5)
Net cash from / (used in) operating investments (31.7) (26.2)
Free cash flow (132.9) (117.0)
Net cash from / (used in) financial investments (42.7) 13.9
Repayment of lease liabilities (90.1) (81.7)
Dividends paid by Nexity SA (109.8) (138.2)
Net cash from / (used in) financing activities (excluding dividend) 140.2 67.6
Change in cash and cash equivalent (235.3) (255.4)
26Nexity / Investor presentation – July 2020
Backlog and total business potential at 30 June 2020
Development business potential**
456308
5,2854,161
31 Dec. 2018
4,640
31 Dec. 2019
373
30 June 2020
4,4695,095
5,659
+11%
Residential Real Estate Commercial Real Estate
Backlog*
* 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
€14.9bn
Commercial Real Estate
€2.8bn
New homes
€10.1bn
Subdivisions
€1.2bn
International
€0.9bn
ResidentialReal Estate
€12.1bn
52,367 units 5,542 units14,532 units
72,441 units
(in €m)
27Nexity / Investor presentation – July 2020
Trends
▪ Resilience of Nexity’s business lines and business model
▪ Substantial recovery in activity in June
▪ Half-year period not representative of the full year
▪ Sharp improvement expected in H2 2020, although not returning to the same level as in H2 2019
▪ Given the ongoing public health-related, economic and social uncertainties, no other guidance given for business activity and results
Solid market fundamentals combined with demographic growth over the next few yearsshould support the Group’s medium-term profitable growth
28Nexity / Investor presentation – July 2020
3.4%
5.3%14.8%
6.4%
68.4%
(1) o/w treasury shares: 885,769 shares (1.58%)
(2) New Port: 7.5%
(3) o/w FCPE (Nexity Actions and Nexity Levier 2017): 3.0%
56,129,724 shares(1)
Nexity’s ownership structure
30 JUNE 2020
FCPE and other employees(3)
AA. Dinin, New Port (2) and other Nexity’s managers belonging to the concert group
Crédit Mutuel Arkéa
Crédit Agricole Assurances
5.3%
14.8%
3.4%
Free float
6.4%
68.4%
Concert group20.2%
Appendix
30Nexity / Investor presentation – July 2020
Nexity is impacted by the crisis
▪ Hard lockdown which put the construction sites to a halt and strongly impacted the signing of reservations and notarial deeds of sales
▪ Strong economic recession that will impact demand
▪ Uncertainties about the economic upturn conditions
Strong recovery since the beginning of June
▪ All construction sites are reopened
▪ Customer contacts return to pre-crisis level
▪ Net reservations in June almost at the level of June 2019
▪ Notarial deeds of sales catching up
▪ 7,450 new homes sold by Nexity to CDC Habitat and strong interest from institutional investors in housing
▪ Robust demand fundamentals for housing
▪ Municipalities fully operational in September
▪ Commercial real estate: continued activity of major Group projects
Nexity’s strong and resilient model
▪ Resilience of Services activities (particularly condominium and rental management and serviced residences)
▪ 20.6 billion euros of pipeline for real estate development activity (€5.7bn of backlog, €14.9bn of business potential)
▪ Strong cash position at end-June 2020 (€873m in cash and €355m in confirmed undrawn borrowing facilities)
Implications of the public-health crisis (COVID-19) on the Group’s activitiesNexity’s resilience
31Nexity / Investor presentation – July 2020
▪ State-sponsored unemployment scheme used only on a careful selected and targeted basis for operating companies where worksites and projects have been forced to shut down
▪ No use of State-aids
▪ Strict control of expenditures (capex, land acquisitions, opening of new residences…)
▪ Engagement Committees maintained
▪ Downward adjustment of the dividend paid in 2020 (€2.00 compared to the €2.70 scheduled initially)
▪ Company officers’ compensation reduction (-25% for the Chairman and Chief Executive Officer)
▪ Nexity removed the call risk of its corporate credit facilities and EURO PP bond issues, in the event of non-compliance with itsfinancial covenants until December 2021
▪ Targets and guidance suspended given to the uncertainties about the economic upturn conditions after the lockdown
Measures taken to face the public-health crisis (Covid-19)
Operational and financial measures
32Nexity / Investor presentation – July 2020
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
▪ A little less than 1 billion euros in turnover for the Nexity share of the eco-campus
13 July 2018
Land acquisition
2020
Signing of the off-plan sale (VEFA)
2021
2022
2023/2024
Scheduled delivery of the Engie campus
2024
Dec.2019Purchase
commitment signingwith Swiss Life Asset
Managers
2019/2020
Building permits preparationPermissions obtention
Reaffirmation of the commitment of EngieNo threat on the administrative authorizations obtention (under option since Q4 2019, expected to be sold at the end of 2020)
33Nexity / Investor presentation – July 2020
H1 2020 revenue
* Portfolio impact corresponds to the growth in business activity carried over from 31 December 2019
Individual Clients 1,361.8 1,611.0 -15% (380) 130
Residential Real Estate 949.9 1,181.9 -20%
Real Estate Services to Individuals 411.9 429.0 -4%
Property Management for Individuals (including franchises)158.3 178.6 -11%
Serviced residences 160.6 145.2 11%
Distribution activities 92.9 105.2 -12%
Commercial Clients 354.3 228.5 55% (50) 170
Commercial Real Estate 304.9 186.3 64%
Real Estate Services to Companies 49.4 42.2 17%
Other Activities 0.0 0.9 -100%
Revenue 1,716.1 1,840.4 -7% (430) 300
o/w portfolio
impact*in millions of eurosH1 2020 H1 2019 % change
o/w Covid
impact
34Nexity / Investor presentation – July 2020
H1 2020 EBITDA and margin rates
in millions of euros
EBITDA
Margin rate
as a % of
revenue
EBITDA
Margin rate
as a % of
revenue
Individual Clients 109.6 8.1% 208.9 13.0% (99.3)
Residential Real Estate 26.9 2.8% 97.8 8.3% (70.8)
Real Estate Services to Individuals 82.7 20.1% 111.1 25.9% (28.4)
Property Management for Individuals (including franchises)24.2 15.3% 48.1 27.0% (23.9)
Serviced residences 54.6 34.0% 56.0 38.6% (1.4)
Distribution activities 3.9 4.1% 7.0 6.6% (3.1)
Commercial Clients 60.8 17.2% 27.0 11.8% 33.9
Commercial Real Estate 53.4 17.5% 21.3 11.4% 32.1
Real Estate Services to Companies 7.5 15.1% 5.7 13.5% 1.8
Other Activities (7.0) na (9.7) na 2.5
TOTAL Group 163.5 9.5% 226.4 12.3% (62.9)
H1 2020 H1 2019
Change
in €m
35Nexity / Investor presentation – July 2020
H1 2020 Current Operating Profit (COP) and margin rates
in millions of euros
COP
Margin rate
as a % of
revenue
COP
Margin rate
as a % of
revenue
Individual Clients 18.7 1.4% 124.9 7.8% (106.2)
Residential Real Estate 9.7 1.0% 80.1 6.8% (70.4)
Real Estate Services to Individuals 9.0 2.2% 44.8 25.1% (35.8)
Property Management for Individuals (including franchises) 11.2 7.1% 34.7 19.4% (23.5)
Serviced residences (5.0) -3.1% 4.4 3.0% (9.3)
Distribution activities 2.8 3.0% 5.7 5.4% (2.9)
Commercial Clients 48.4 13.7% 16.9 7.4% 31.4
Commercial Real Estate 52.0 17.1% 20.0 10.7% 32.0
Real Estate Services to Companies (3.6) na (3.1) na (0.6)
Other Activities (16.9) na (16.5) na (0.4)
TOTAL Group 50.2 2.9% 125.4 6.8% (75.2)
H1 2020 H1 2019
Change
in €m
36Nexity / Investor presentation – July 2020
Breakdown into development and services
in €mH1 2020
Realised
H1 2019
Realised
H1 2020
Realised
H1 2019
Realised
H1 2020
Realised
H1 2019
Realised
H1 2020
Realised
H1 2019
Realised
Residential Real Estate 950 1,182 27 98 19 86 10 80
Commercial Real Estate 305 186 53 21 53 21 52 20
0 0
Development 1,255 1,368 80 119 71 106 62 100
Change -8.3% -32.5% -33.0% -38.3%as a % of revenue 6.4% 8.7% 5.7% 7.8% 4.9% 7.3%
PMI, franchises, Property Management 190 209 23 50 14 39 7 34
Serviced residences, Bureaux à Partager 179 157 63 60 -4 1 -5 2
Distribution (PERL, Iselection) 93 105 4 7 3 6 3 6
Services 461 471 90 117 13 47 5 42
Change -2.1% -22.8% -72.7% -87.1%as a % of revenue 19.5% 24.8% 2.8% 9.9% 1.2% 8.9%
Other activities 0 1 (7) (10) (11) (14) (17) (16)
GROUP 1,716 1,840 163 226 73 140 50 125
Change -6.8% -27.8% -47.4% -59.9%
as a % of revenue 9.5% 12.3% 4.3% 7.6% 2.9% 6.8%
EBITDA
(after leases)
Current operating
profitRevenue
EBITDA
IFRS 16
37Nexity / Investor presentation – July 2020
Financial debt before lease liabilities analysis
294 20
84
156
2020 20262021 202720252022 2023 2024
162
515
349
▪ 45% of bond issues and commitment to buyback minorityinterests with maturity > 5 years
▪ Limited repayments in 2020 and 2021
▪ Gross debt drawn down at 30 June 2020: €2,255m
992
326
685
253
€2,255m
Corporate borrowingsBond issues (Euro PP and convertibles)
Put options granted to minority interests Project related loans
▪ Bond issues and commitments to buyback minority interests schedule*: €1,318m
▪ Cost of financing (debt drawn down): 2.4% at end-June 2020 (2.3% in 2019)
▪ High undrawn amounts (€355m at 30 June) on available corporatecredit lines (€500m authorised until July 2023)
* According to valuation and provisional schedule for the execution of commitments, restated for the equity component on the OCEANE and for the spread of issue costs
(in €m) (in €m)
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