Investor presentation - ODDO VIRTUAL FORUM JANUARY 2021 - Nexity
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Investor presentation ODDO VIRTUAL FORUM JANUARY 2021
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, 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.
Nexity / Investor Presentation - January 2021 2
Our Real Estate Services platform
Who we are: a Services company serving our Clients’ needs
HELP MEET DEMOGRAPHIC SEIZE OPPORTUNITIES INCORPORATE NEW USES CONSERVE
AND SOCIAL PRIORITIES ARISING FROM CONTINUING AND THINK ABOUT FUTURE RESOURCES
URBANISATION USES
# Structural growth in demand for # Nexity, leading position in # Innovative digital services # Ambitious CSR strategy
housing in major cities Greater Paris (20% market share) with quantified and fully
and other major cities # Services platform putting integrated objectives
# Products and services catering users at the centre of our
for every stage of life and in all # A very wide range of products offerings # Emphasis on energy
price categories enabling it to develop mixed-use renovation
real estate projects geared to # Create new hybrid, modern
meeting complex urban places # Energy performance
# Properties suited to every type challenges management
of household
# Strategy focused on mixed-use
and better collective living
Nexity / Investor Presentation - January 2021 4Our Real Estate Services platform
Two complementary business lines assisting our clients as their real estate needs evolve
• No. 1 integrated real estate
operator in France
• Combination of real estate
development and real estate
services
• A unique model
16% of 2019 revenue
generated by
integrated
development /
services solutions
(€725m)
Nexity / Investor Presentation - January 2021 5Corporate Responsibility
Create social, environmental and economic value through Nexity certified Great Place To Work® in September 2020
5 committments: ▪ Nearly 9 out of 10 employees, say Nexity is an inclusive company that treats all its employees
fairly, regardless of their age, gender, possible disabilities, ethnic origins or sexual orientation
Be recognised as a preferred employer ▪ Nearly 8 out of 10 employees express their pride in working for Nexity, appreciating the
Group’s civic contribution and considering meaningful their professional activity within the
Group being more than just a job
Designing sustainable, responsible cities ▪ Nearly 7 out of 10 employees say Nexity is a great place to work
Better access to housing and higher-quality Performance recognised by non-financial rating agencies
neighbourhoods
4th place overall (230 companies) compared to 12th place in 2018
Better building practices for higher quality of life at work
Upholding high standards in corporate governance and France’s #1 low-carbon developer
business ethics
One of the 12 French companies selected by Bloomberg in its GEI Index 2020, on
Supported by an involved governance: gender equality
▪ Stakeholder committee
▪ Dedicated committees: Executive Committee and Board of Directors
Targets in terms of reducing GHG emissions by 2030:
€240m inaugural Green Bond issue
• -35% per employee
• 1st green bond issued by a developer in France • -30% per new home delivered
▪ Residential Real Estate with a level of energy performance belonging to • -21% per sq.m of floor area for office space delivered
the top 15%
Nexity / Investor Presentation - January 2021 6A growth track record (2014-2019)
GROUP REVENUE
(€m)
4,499
X1.7
2,632 vs 2014
2014 2019
SERVICES REVENUE
CURRENT OPERATING PROFIT (€m) (€m)
AND MARGIN RATE
TSR*
X2.2
1.065
+84% 484 vs 2014
7.0% 7.9%
X1.9 since 2014
vs 2014
353
184 2014 2019
2014 2019
NEW HOME RESERVATIONS
(in volume)
21,837
10,365
X2.1
vs 2014
2014 2019
>11,000 EMPLOYEES
Nexity / Investor Presentation - January 2021 * total shareholder return at 31 December 2019, i.e +13% on average per year 7A resilient model generating cash flows
2014-2019 average: 387 573
461 523
EBITDA
305 368
(in €m) 260
221
CAF après coût du financement et impôts 2014-2019 average: 236
(in €m) 350 377
239 239
149 182
117
Free Cash flow 2014-2019 average: 165
(in €m) 221 222 230
168 152 152
9
Dividend
(in €)
2,2 2,4 2,4 2,5 2,5
2,0 2,0
2014 2015 2016 2017 2017 2018 2019
published restated*
Nexity / Investor Presentation - January 2021 * 2017 restated from IFRS 15 and IFRS 16 standards 8Nexity’s ownership structure
30 SEPTEMBER 2020
56,129,724 shares(1)
Crédit Mutuel Arkéa 5.3%
5.3% Concert
14.7% A. Dinin, New Port (2) and other Nexity’s group
managers belonging to the Concert group 14.7% 20.0%
3.4%
6.4% FCPE and other employees (3) 3.4%
Crédit Agricole Assurances 6.4%
Free float 68.6%
68.6%
(1) o/w treasury shares: 907,754 shares (1.62%)
(2) New Port: 7.3%
(3) o/w FCPE (Nexity Actions and Nexity Levier 2017): 3.0%
Nexity / Investor Presentation - January 2021 9Recent news
Update to Nexity’s strategic plan1
CONFIRMATION OF AN AMBITIOUS, PROFITABLE AND RESPONSIBLE GROWTH TRAJECTORY, CENTRED AROUND THE
GROUP’S REAL ESTATE EXPERTISE
Actions for operational improvement:
▪ Focus on business lines that, working in combination, help create added value for the Group’s clients
▪ Accelerate property development initiatives, building up the Group’s land development and sourcing capacity by mobilising all its
business lines and networks
▪ Reaffirm Nexity’s leadership in low-carbon real estate and continue growing in the market for energy renovation and refurbishment
of condominiums
▪ Create new drivers of geographic growth by reinforcing the Group’s regional network in France and consolidating its presence
abroad, particularly in Poland and Germany
▪ Achieve economies of scale in each of the Group’s business lines by fully capitalising on its size
▪ Bolster Nexity’s financial structure by reducing its leverage
Nexity / Investor Presentation - January 2021
1 See press release on 17 December 2020
11Update to Nexity’s strategic plan
Key priorities of the Group’s client strategy:
▪ Develop a specific range of solutions for institutional clients by combining products and services that fit their needs
▪ Support demand from first-time buyers and private investors in terms of both buying and managing properties
▪ Help companies transform in the post-Covid world by rolling out a full range of real estate solutions, from corporate head
offices to housing and “third places”
▪ Meet demand from local authorities, in particular by offering solutions for city centres and medium-sized towns, leveraging
the Group’s expertise in revitalising ground-floor retail space, services tailored to local businesses and renovation
▪ Invest more in customer satisfaction and the digitisation of the Group’s activities
Independant living facilities:
Nexity has confirmed its desire to keep growing in the serviced residences market and to consolidate Ægide-Domitys’ position as France’s
leading operator of senior residences. To do so, Nexity:
▪ Will look for a partner able to support growth and international expansion of Ægide-Domitys and ensure the operational excellence of
its ‘personal care services’ residences
▪ Will focus on the development of senior residences, a flagship product in its offering aimed at investors, local authorities, seniors and
their families
Nexity / Investor Presentation - January 2021 1 See press release on 17 December 2020 12Guidance raised1
Nexity performed better than expected under the second lockdown, and its business was less affected.
The group raises its guidance, given the signing of notarial deeds of sale, progress on construction sites and the marketing of
major programmes in Commercial Real Estate (Eco-business park in La Garenne-Colombes, Reiwa Project in Saint-Ouen,
Network II in Bagneux):
2020 business activity
▪ New home reservations for Nexity: equivalent to that of 2019 and above the estimated 20,000 units anticipated, supporting a
strong increase in its market share
▪ Order intake for Commercial Real Estate: reaching a record high, totalling €1.5 billion
Financial aspects
▪ 2020 revenue of around €4.7 billion in 2020 (instead of at least €4.2 billion), with a current operating margin of more than 5%
(instead of around 5%) and for 2021, on a like-for-like basis, revenue of around €4.7 billion with a current operating margin above
7%.
▪ Net financial debt (before lease liabilities) less than €800 million at 31 December 2020 (instead of less than €1.2 billion)
▪ Development pipeline (backlog + land under options) of around 20 billion euros at year-end 2020
1 See press release of 4 January 2021– Guidance raised compared to the guidance announced on 28 October 2020
Nexity / Investor Presentation - January 2021 139M 2020 Business activity and revenue
9M 2020 business activity and revenue
Residential Real New home reservations in France
• 13,635 units (-3% compared to 9M 2019)
Estate • €2,948m (+4% compared to 9M 2019)
Property Management for individuals
• Low churn rate: -0.7%
Services to
Serviced residences
individuals • Seniors (Domitys): 10 openings (110 residences)
• Students (Studéa): 124 residences
Commercial real
Order intake: €230m
Estate
Stability of the development pipeline (backlog + land under options)
Other KPIs compared to end-2019 > €20bn
Revenue €2,737m ; -2% compared to 9M 2019
Nexity / Investor Presentation - January 2021 15INDIVIDUAL CLIENTS
Residential Real Estate
A market still undersupplied but impacted by the crisis
(in units)
~ -25%
168,900 163,800 164,900
153,500 Demographics
121,100 125,400 ~ 125,000 Support of institutional investors
105,900 108,600 107,300
Extension of tax incentives in supply-constrained
areas until the end of 2022
Easing of the credit conditions by the HCSF (up to
27 years and a debt ratio increased to 35%)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e
Economic situation of the construction industry
Decrase in building permits amplified by the
Retail sales Bulk sales lockdown
Taxation on housing
▪ Sharp drop in building permits (-12% over 1 year*) and housing starts (-6% over 1 year*) in a context of
municipal elections and health crisis
▪ Gradual resumption of the issuance of building permits expected from 2021
Sources: Commissariat Général au Développement Durable (Base Sit@del2) for retail sales– Fédération des Promoteurs Immobiliers for bulk sales– Nexity estimation for 2020
* At end November 2020
Nexity / Investor Presentation - January 2021 16INDIVIDUAL CLIENTS
Residential Real Estate
Nexity new home reservations in France
Reservations in volume Breakdown by clients
(in units, including Ægide from 1st July 2018)
13,009
14,043 13,635 -3% 14,043 13,635
Social landlords: -11%
Bulk sales:
20%
+55%
In 9M 2020 compared 18%
4,557 4,184 to 9M 2019
4,757 11%
31% Institutional investors: X 2.8 In 9M 2020 compared
to 9M 2019
5,603 5,794 48% Retail sales:
4,634
34% Individual investors: -30%
3,618 3,883 3,657
4% 2%
Other homebuyers: -46% -28%
17% 14% First-time buyer: -19% In 9M 2020 compared
to 9M 2019
2018 2019 2020 9M 2019 9M 2020
Q1 Q2 Q3
▪ New home reservations in France : +4% in value ▪ Bulk sales (49% of 9M 2020 reservations): increased interest from institutional
▪ Total reservations (incl. Subdivisions and International): -4% in investors (x 2.8)
volume and +3% in value ▪ CDC Habitat: 2,880 reservations in 9M 2020, o/w more than 2,000 should be
– o/w Subdivisions: 901 units (-28%) worth €74m (-27%) recognised as notorial deeds of sale before the end of the year
▪ Signature on 1st October 2020 of a partnership with Gecina to develop 4,000
– o/w International: 432 units (+29%) worth €65m (+24%) new homes over a four-year period in supply-constrained areas
▪ Retail sales (51% of H1 2020 reservations): decline linked to the supply shortage,
stricter conditions for mortgage approval for individual clients and the wait-and-see
attitude of individual investors in view of the current economic situation
Nexity / Investor Presentation - January 2021 17Nexity’s market share evolution
Market share in France* Market share in the Paris region**
17.5%
16.0%
15.9%
15.4%
13.2% 14.5% 14.8%
14.2%
13.5% 13.3%
12.0% 12.1%
10.9%
10.4%
9.7% 9.4%
2014 2015 2016 2017 2018 9M 2019 2019 9M 2020 2014 2015 2016 2017 2018 H1 2019 2019 9M 2020
▪ Retail sales: Nexity’s market share at end-September 2020 was up 1.3 pt compared
to 2019 at 14.6%
* Sources: Commissariat Général au Développement Durable (Base Sit@del2) for retail sales – Fédération des Promoteurs Immobiliers for bulk sales
Nexity / Investor Presentation - January 2021 ** Sources: Nexity new home reservations and CAPEM for market data 18INDIVIDUAL CLIENTS
Residential Real Estate
Nexity supply for sale and business potential at 30 September 2020
Supply for sale Business potential*
(in units, excl. International and including Ægide from 1 July 2018) (in units, excl. International and Subdivisions, including Ægide from 1 July 2018)
-18% -7%
8,651 9,005 8,859 53,602 55,354
1% 51,365
7,271 47,560
6,773 26% 1% 41,813 41%
6,438 37%
29% 34,453
73%
70% 59% 63%
2015 2016 2017 2018 2019 9M 2020 2015 2016 2017 2018 2019 9M 2020
New homes in project phase New homes under construction Completed new homes Rest of France Paris Region
▪ Very high pre-sales rate: 76% at end-September 2020 (compared to 75% at ▪ The 7% decrease takes into account a lower number of new operations carried out by the
end-September 2019) Commitment Committee after the spring lockdown period
▪ Take-up period** of 4.1 months at end-September 2020 (compared to 5.1 in ▪ The business potential represents €10.0bn in potential consolidated revenue excluding VAT as
9M 2019 and 4.9 at end-2019) of 30 September 2020
▪ Completed new homes: 72 units at end-September 2020
▪ Decline in supply for sale resulting from the decline in building permits, mainly
concentrated in the Paris Region
* 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, in
all 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)
** Take-up period: available market supply / reservations for the last 12 months, expressed in months
Nexity / Investor Presentation - January 2021 19INDIVIDUAL CLIENTS
Real Estate Services to Individuals
Property management for individuals and Distribution
PMI – Units under management Number of transactions on existing market
(in thousands of units) (rolling 12-month - in thousands)
1,069
2019 9M 2020 1,006
821 801
Condominium 709 704
management
Rental 175 174 694
management 595
884 878
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Oct.-20
-0.7% Sources: CGEDD
Distribution – Total Reservations
(in units) Franchise network – Century 21
-21%
3,406 ▪ 899 agencies at end-September 2020 (compared to 898 at end-December 2019)
447 2,700
355
2,959 2,345
9M 2019 9M 2020
iSelection PERL
Nexity / Investor Presentation - January 2021 20INDIVIDUAL CLIENTS
Real Estate Services to Individuals
Serviced residences
STUDENT RESIDENCES SENIOR INDEPENDENT LIVING FACILITIES
110
Occupancy rate* 100
83 38
100 72 42
59
95 52
41
36
90 72
25 58
15
85
2011 2012 2013 2014 2015 2016 2017 2018 2019 9M
80 2020
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Residences opened for more than 2 years Residences opened for less than 2 years
2019 2020
124 residences, and 15,000 managed units at end-September 110 residences, and 12,800 units managed at end-September 2020
2020 10 new residences opening during 9M 2020
Occupancy rate in September 2020 stands at 98.0% (at the End-September 2020 rolling 12-month occupancy rate stands at 85.0%
same level as September 2019) (compared to 84.2% at end-December 2019)**
* Monthly occupancy rate ** Occupancy rate at end-September 2020 stands at 95% for the 72 residences opened for more than 2 years
Nexity / Investor Presentation - January 2021 21COMMERCIAL CLIENTS
Commercial Real Estate
Business potential* and order intake
Business potential for Commercial Real Estate Order intake
at 30 September 2020 (in €m excl. VAT)
(in €m)
-5% 521
2,796 2,966 2,820
23%
349 216
28% 26% 230
183 16
72% 77% 74% 305
166 214
2018 2019 9M 2020 2018 2019 9M 2020
Paris Region Rest of France Paris Region Rest of France
▪ Integrates La Garenne-Colombes project for ~€1bn (Nexity’s share), ▪ Sale of Influence 2.0 in Saint-Ouen (Seine-Saint-Denis), occupied by
under option since Q4 2019 and still scheduled to be sold in Q4 2020 the Île-de-France Region (Buyer BNPP REIM)
▪ Steady development of the programmes in portfolio, with secured
▪ €321m backlog at end-September 2020 compared to €456m at
commitments from qualified investors and users
end-2019
* Corresponds to The total volume of potential business at any given moment, expressed as revenue excluding VAT, within future projects in Commercial Real Estate, 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)
Nexity / Investor Presentation - January 2021 22Revenue
(in €m)
Dynamic Q3 2020 for Individual Clients …
+5.9%
…allowing 9M 2020 to partly mitigate the
+75 +15 1,021
964 -33 -27% slowdown linked to the spring lockdown period
90
123
+6% -2.4%
241
226 2,805
1 2,737
352 -157 -3 +93
+12%
445 +26%
690 655
615 652 stable
Q3 2019 Individual Clients Individual Clients Commercial Q3 2020
Residential Real Services to Clients 1,797 1,640 -9%
Estate individuals
Individual Clients: +€90m
9M 2019 Individual Individual Commercial 9M 2020
Clients Clients Clients
Residential Services to
Real Estate individuals
Individual Clients Individual Clients Commercial Clients
Residential Real Estate Services to individuals
Individual Clients: -€160m
Nexity / Investor Presentation - January 2021 23Backlog and business potential at 30 September 2020
Backlog* Development business potential**
+12%
5,719 €14.9bn
5,095 321
4,469 456
308
Residential Commercial
Real Estate Real Estate
5,397
4,161 4,640 €12.1bn €2.8bn
72,355 units
31 Dec. 2018 31 Dec. 2019 30 Sept. 2020
New homes Subdivisions International
Residential Real Estate Commercial Real Estate
€10.0bn €1.1bn €0.9bn
51,365 units 14,425 units 5,565 units
▪ Stability of the development pipeline (backlog + land under options) compared to end-2019 at more than €20bn
* Corresponds to the Group’s order backlog in terms of forecast - 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
Nexity / Investor Presentation - January 2021 24Appendix
Long term trends for housing
Estimated number of homes required per year by 2040
(in thousands of units)
4 million 32 million 400-450k units
people in substandard housing and
12.1 million people in fragile households by 2030, +4 million (Nexity estimate) Plugging the construction
situations(1) compared to 2015 (2) 364 378 364 shortfall
359
322 330 312 Regional population shifts
294 130
85 127 130 130 Obsolescence
84 100
42% 83
113
of single people households by 2030, 101 117 124 109 109
13 million (2) 107 109 Growth in number
of households
137 128 104 103 113 135 120 126
€18,972 €22,680 2012 2013 2014 2015 2016 2017 2018 2019 2040
according
Average annual income (median) of a Average annual income (median)
single adult in France, ie €1,581 / month(3) needed to buy a 2 room apartment of to Nexity
43 sq.m in France(3) Developers (1) Social housing (2) Single-family houses (3)
Sales Financing authorisations Sales
25%
share of housing spendings in households DEMAND FOR AT LEAST 400,000 NEW HOMES PER YEAR BY 2040, VS AN
consumption expenditure in France (4) AVERAGE OF 341,000 RESERVATIONS BETWEEN 2012 AND 2019
(1) Annual report #24 de la Fondation Abbé Pierre – Feb. 2019
(2) Observatoire et statistiques n°135 – August 2012
(1) Gross sales by developers, i.e. individual and collective housing taken together - source: Commissariat Général au Développement Durable
(3) Insee – DGFIP-Cnaf-Cnav-CCMSA, fichier localisé social et fiscal (2) Number of homes financed, outside ANRU urban regeneration areas - source: Ministère de l’égalité des territoires et du logement – Bilan
(4) In 2017 – source: L’économie française, 2018 edition - Insee Références des logements aidés 2012-2017 – Ministère de l’égalité des territoires et du logement for 2018 and 2019
(3) Contracts for the construction of detached and semi-detached houses - source: Union des Maisons Françaises 2012 – LCA/FFB from 2017
Nexity / Investor Presentation - January 2021 to 2019 26Revenue 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)
Nexity / Investor Presentation - January 2021 27Revenue from contracts with customers - commercial
Pattern of revenue recognition for a typical commercial development in the inner suburbs of Paris
(land: 30% of cost)
Delivery
100.0%
Off-plan sale agreed
61.1%
37.5%
▪ Faster recognition of
revenue and margins with
corresponding decrease in
M0 M3 M6 M9 M12 M15 M18 M21 the backlog
▪ Operating profit more
Impact of the month in which an agreement is sealed (as a % of development revenue) closely correlated to
SCENARIO 1: 39 SCENARIO 2: 53
fluctuations in business
38
47
AGREEMENT IN Q4 N AGREEMENT IN Q1 N+1 activity
24
Revenue Revenue
Q4 N N+1 N+2 Q4 N N+1 N+2
Nexity / Investor Presentation - January 2021 Difference between two scenarii: -38 +29 +8 28Cash flow profiles for VEFA off-plan sales
RESIDENTIAL REAL ESTATE RESIDENTIAL REAL ESTATE COMMERCIAL REAL ESTATE
for individual clients for social housing operators,
with progress payments
110 110
107 99
94 95
83
Cash inflows 66
70
62 55 55
35
28
34
4 0 0 5 5 0 0 19 14 15 15
17 10
-2 -5
9 10 6 7
-21
-15
-25 -20 -30 -36
-38 -49 -52
-56 -9 -35
-14
-64 -68
-71
-29 -85 -78 -84
-100 -100 -100
Purchase of land Purchase of land Purchase of land
Cash outflows
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
Net cash
Assumptions by Nexity, basis of 100
Nexity / Investor Presentation - January 2021 29H1 2020 Financial results
H1 2020 Results
in millions of euros H1 2020 H1 2019 % Change
Revenue 1,716.1 1,840.4 -7%
EBITDA 163.5 226.4 -28%
as a % o f revenue 9.5% 12.3%
Leases (90.1) (81.7) 10%
EBITDA after leases 73.3 144.7 -49%
as a % o f revenue 4.3% 7.9%
Current operating profit 50.2 125.4 -60%
as a % o f 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%
Nexity / Investor Presentation - January 2021 31H1 2020 Revenue and lockdown estimated impacts
(in €m) -7%
1,840
+130
1 -380 1,716
229 +170 -50
354 Commercial Clients +55%
1,611
1,362
Individual Clients -15%
H1 2019 H1 2020
portfolio impact* COVID impact portfolio impact* COVID impact
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
Nexity / Investor Presentation - January 2021 Commercial Real Estate upon the sale, and the increase of the number of coworking spaces for Real Estate Services to Companies)
32H1 2020 EBITDA and margin rates
(in €m and in % of revenue)
Individual Clients Commercial Clients Other activities Group
-63€m
-€99m
226
209 (12.3%)
(13.0%)
163
(9.5%)
110
(8.1%) +€34m
61
(17.2%)
27
(11.8%)
+€3m
-10 -7
H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020
Residential Real Estate: €27m, 2.8% margin Commercial Real Estate: €53m, 17.5% margin
▪ Overhead costs not rebilled ▪ Sale of the Influence 2.0 building and good
Services to Individuals: €83m, 20.1% margin progress on ongoing projects
▪ High comparison base (capital gain on
the Guy Hoquet l’Immobilier disposal in
H1 2019)
Nexity / Investor Presentation - January 2021 33Reconciliation between H1 2020 EBITDA and current operating profit
(in €m) -€113m
163
-82
-24
+1 -8 50
H1 2020 Right-of-use leased Depreciation, amortisation Provision charge (-) / Share-based H1 2020 Current
EBITDA asset depreciation and impairment of fixed reversals (+) of provisions payments Operating Profit
assets
-€101m
At
H1 2019 226 -76 -20 +2 -7 125
▪ €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)
Nexity / Investor Presentation - January 2021 34Simplified balance sheet at 30 June 2020
(in €m)
Equity
1,664 1,666 (incl. non-controlling interests)
Goodwills
259 101 Provisions
Other assets
Right-of-use 887 Lease liabilities
803
leased assets (IFRS 16)
Total net debt: €2,268m
Net financial debt
WCR 1,309 1,381 before lease liabilities
ASSETS EQUITY AND
LIABILITIES
Nexity / Investor Presentation - January 2021 35Change in H1 2020 Working Capital Requirement (WCR)
(in €m)
+€290m
1,309
+18 +66 120
+56
1,019 108
+150
54
90
1,081
875
2019 Individual Clients Individual Clients Commercial Clients Other Activities H1 2020
France International (incl. Income tax)
Individual Clients: +€206m Individual Clients Commercial Clients Other Activities
(incl. Income tax)
▪ Residential Real Estate in France: WCR to Backlog ratio comparable to its historical levels (around 20%)
Nexity / Investor Presentation - January 2021 36Change in net financial debt before lease liabilities
(in €m)
- €463m
-918
+165
-226
-35
-32 -1,381
-89
-130
-116
2019 EBITDA Change in Interest and CAPEX Repayment of Dividend and External growth 30 June 2020
operating WCR tax payments lease liabilities share buyback
programmes
▪ 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; this
exemption 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
Nexity / Investor Presentation - January 2021 37Financial debt before lease liabilities analysis
▪ Gross debt drawn down at 30 June 2020: €2,255m ▪ Bond issues and commitments to buyback minority interests schedule*:
€1,318m
(in €m) (in €m)
253 515
992 349
€2,255
685 m
162 156
84
326 29 20
4
Bond issues (Euro PP and convertibles) Corporate borrowings
2020 2021 2022 2023 2024 2025 2026 2027
Put options granted to minority interests Project related loans
▪ Cost of financing (debt drawn down): ▪ 45% of bond issues and commitment to buyback minority
2.4% at end-June 2020 (2.3% in 2019) interests with maturity > 5 years
▪ High undrawn amounts (€355m at 30 June) on available corporate ▪ Limited repayments in 2020 and 2021
credit lines (€500m authorised until July 2023)
* According to valuation and provisional schedule for the execution of commitments, restated for the equity component
Nexity / Investor Presentation - January 2021 on the OCEANE and for the spread of issue costs
38H1 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
11.0 (23.5)
other
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)
Nexity / Investor Presentation - January 2021 3919, rue de Vienne 75 008 Paris Tél. : +33 (0)1 85 55 12 12
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