Q1 2022 Business activity and revenue - 27 April 2022 - Nexity
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Q1 2022 Business activity and revenue 27 April 2022
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.22-0248 on 6 April 2022 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.
Q1 2022 Business activity and revenue 2
FIRST QUARTER 2022
KEY FIGURES AND HIGHLIGHTS
New homes:
Stable reservations
▪ Quarter traditionally not representative of the activity expected during the year
3,490 units
Development Backlog
▪ Continued good sales momentum in Residential Real Estate
~2 years of revenue
€6.5 bn ▪ Persistent supply shortage
Services: ▪ Very strong growth in Services, driven by coworking activities
+11% in revenue
▪ No significant short-term impact of the global geopolitical context on business
Dividend for the fiscal
year 2021 ▪ Increase in construction costs managed and absorbed for new projects
€2.50 / share
Q1 2022 Business activity and revenue 3
LEADERSHIP IN DECARBONATION IN REAL ESTATE SECTOR
A STRENGTHENED AMBITION
ENHANCED CARBON DECREASE TRAJECTORY* PROTECTING BIODIVERSITY
10% MORE AMBITIOUS THAN FRENCH REGULATION (RE 2020) THROUGH 4 COMMITMENTS
CO2 emissions /sq.m
1. Measure biodiversity footprint across all business
Old trajectory certified
by SBTi “Well below 2°C” activities
-22%** 2. 100% of residential and commercial projects
delivered from 2023 with planted areas
New trajectory
-42%** 3. Contribute to limiting soil sealing and land
artificialisation on the development projects
delivered from 2024
2022 2025 2028 2031
Old trajectory "Well below 2°C"
4. Train and engage 100% of the involved
New trajectory* employees by the end of 2022
Statutory thresholds (French environmental regulation - RE 2020)
* Nexity is targeting a SBTi certified trajectory which is 1.5 °C-aligned
** Change in 2030 vs 2019 of GHG emissons linked to the life cycle of buildings delivered as part of the development activity (Scope 3). In CO2/ sq.m eq.
Q1 2022 Business activity and revenue 4
RESIDENTIAL REAL ESTATE
CONTINUED STRONG DEMAND
STABLE RESERVATIONS IN VOLUME* A BALANCED CLIENT MIX
3,490
reservations BULK SALES
~3,500 reservations on average
▪ Strong base of social housing operators
3,598 3,450 3,508 3,490 31% ▪ Institutional investors still attracted by
BULK 39%
the defensive and resilient nature of
8% residential real estate
Q1 2019 Q1 2020 Q1 2021 Q1 2022
RETAIL SALES
41%
61% ▪ Still attractive financing conditions
RETAIL
▪ Sales price per sq.m up 4.2% in
supplied-constrained areas (“A” and
20% “B1” zones, accounting for 80% of
Social housing operators
Nexity’s reservations)
Institutional investors Q1 2022
Individual investors
Homebuyers
* on a like-for-like basis
Q1 2022 Business activity and revenue 5RESIDENTIAL REAL ESTATE
PERSISTENT SHORTAGE OF SUPPLY
SLOW RECOVERY IN BUILDING PERMITS SUPPLY FOR SALE REBUILDING
Building permits granted (apartments)
IN A STILL DEMANDING MARKET
(Rolling 12-months, February 2022)
320,000
300,000
Feb-20
280,000
273,600 GRANTED PERMITS +17% vs Q1 2021
260,000 GRANTED
Feb-22 IN FRANCE
260,500
-10%
240,000
+6% TIME-TO-MARKET
(3.4 months)
vs Q1 2021
Dec-21 to Feb-22
220,000 vs Dec-20 to Feb-21
Feb-21
222,100
200,000
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jul-17
Jul-18
Jul-19
Jul-20
Jul-21
Source: ECLN
Q1 2022 Business activity and revenue 6COMMERCIAL REAL ESTATE
DELIVERY OF PARIS-COLISÉE IN Q1 2022
Offices adapted to new uses
Rebuilding the city over the city
Conversion of parking spaces in the heart of Paris 8th district
Refurbishment of 8,700 sq.m
• Green spaces, gardens, terraces
• Coworking space
• Parking spaces for electric vehicles
Certifications: NF Bâtiments Tertiaires – Démarche HQE 2016 Passeport Niveau Très Performant–
BREEAM Very Good – BBC_ RT2012 -40% et EFFINERGIE BBC Rénovation (Cep ≤ Cref -40%)
Q1 2022 Business activity and revenue 7SERVICES: +11% IN Q1 2022
VERY STRONG GROWTH DRIVEN BY COWORKING
Morning Petites écuries
>X2 #3
Revenue In France
▪ 5 new spaces opened (+10,000 sq.m) Morning Penthièvre
Photo n°008_Credit-BenoitDrouet-pour-Morning
▪ Average occupancy rate of 90%
At end-March 2022
▪ 30 spaces, 67,000 sq.m under management, 7,800 work stations
Morning Trocadero
Photo n°028_Credit-BenoitDrouet-pour-Morning
Q1 2022 Business activity and revenue 8Q1 2022 REVENUE
DECREASE IN LINE WITH THE PRODUCTION CYCLE
(in €m) Residential Real Estate:
- Weaker start of new operations
-13%
1,028*
Commercial Real Estate:
895
- High comparison base with revenue generated
779
695 by the Reiwa order intake in Q1 2021 (>€120m)
655 -4%
,
626
511
467
-63%
195 Services:
95 72
57 - Serviced properties: +40%, sites openings and
+11% 195
173 171 176 increase in occupancy rates
Q1 2019 Q1 2020 Q1 2021 Q1 2022 - Property management: +1%, good performance
Residential Real estate Commercial Real Estate Services
of the transaction and seasonal rental activities
- Distribution : +10%, good level of notarial deeds
Data and changes presented on a like-for-like basis, i.e. excluding activities disposed in 2021 Q1 2022 Business activity and revenue 9
* Q1 2021 reported revenues were €1,132m. It included activities disposed in 2021 Ægide-Domitys and Century 21 (€104m)OUTLOOK
DEVELOPMENT PIPELINE STILL HIGH AT €20 bn
21.2 20.7
20.1 20.0
4.8 6.5 6.5 6.5 Backlog*
~2 years of activity
15.3 14.6 14.2 Business potential**
13.5
~4 years of activity
2019 2020 2021 Q1 2022
Data on a like-for-like basis
* Represents the Group’s already secured future revenue, expressed in euros, for its real estate development businesses (Residential Real Estate and Commercial Real Estate). The backlog includes reservations for which
notarial deeds of sale have not yet been signed and the portion of revenue remaining to be generated on units for which notarial deeds of sale have already been signed (portion remaining to be built)
** 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) as well as Commercial Real Estate, validated by the Group’s Committee, in all structuring phases, including the projects 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) Q1 2022 Business activity and revenue 10OUTLOOK
IN MOTION TO ADAPT TO AN UNCERTAIN ENVIRONMENT
▪ Strengthened purchasing policy ; leveraging benefits of scale
▪ Ability to innovate
▪ Products optimisation to market conditions
▪ Promoting our unique low carbon know-how
Strong track record of profitability resilience across cycles
Q1 2022 Business activity and revenue 11OUTLOOK
2022 OBJECTIVES UNCHANGED
Market share in
Residential Real > 14%(1)
Estate
Cuurent operating
profit
At least €380m(2)
Subject to economic, social and health situation
(1) In a new home market expected to grow slightly (c.150,000 units)
(2) i.e a current operating margin around 8.0% Q1 2022 Business activity and revenue 12SHAREHOLDERS’ MEETING OF 18 MAY 2022
DIVIDEND BACK TO PRE COVID LEVEL AT €2.50 PER SHARE
2.40 2.50 2.50 2.50
2.20
2.00 2.00 2.00 2.00
In € per share
133 140 138 ~140
121 110 111
In €m 108 108
Paid in: 2014 2015 2016 2017 2018 2019 2020 2021 2022*
* Subject to approval at the 2022 Shareholders’ meeting Q1 2022 Business activity and revenue 1319, rue de Vienne
75 008 Paris
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