Q1 2021 Business activity and revenue - Webcast April 28, 2021 - Nexity
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Q1 2021 Business activity and revenue Webcast April 28, 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.21-0283 on 9 April 2021 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 / Webcast – April 28, 2021 2
Q1 2021: a very dynamic quarter
New home reservations in France
Residential • +7% in units1
Real Estate • +11% in value1
Commercial
€301m of order intake
Real Estate
Steady at €6.8bn,
Backlog
i.e. 23 months of revenue
Revenue €1,132m (+€345m1)
Exclusive talks for the disposal of:
Strategic review - The majority of Ægide-Domitys’ capital2
- Century 21 France3
(1) Compared to Q1 2020
(2) Entreprise value at 100% of €375m
(3) Entreprise value at 100% of €84m
Nexity / Webcast – April 28, 2021 3
New carbon footprint reduction targets
validated by the SBTi
The Group confirms its ambition by committing to « well below 2°C » carbon
trajectory, scientifically validated by the Science Based Targets initiative* (SBTi)
To reduce in absolute terms the emissions linked to its direct (Scope 1)
and indirect (Scope 2) fossil fuel consumption by 28% between
2019 and 2030, and
To reduce by 22%, for Scope 3, the greenhouse gas emissions related Nexity is also proud to be recognized
to construction materials and energy consumption of buildings by its employees as one of
delivered between 2019 and 2030. the best companies to work for
*Born from a partnership between the United Nations Global Compact, CDP, the World Wildlife Fund (WWF) and the World
Resources Institute (WRI), the aim of this Science Based Targets initiative is to support proactive companies in achieving
greenhouse gas emissions reduction targets, compatible with a global warming scenario limited to a maximum of +2 °C.
Nexity / Webcast – April 28, 2021 4
DEVELOPMENT
Residential Real Estate
Building permits and housing starts
(in units)
Granted building permits Housing starts
496,600 -17.4%
452,300 456,500 434,400 -9.5%
397,700 388,800
377,000
351,900
F-18
F-19
F-20
F-21
F-18
F-19
F-20
F-21
▪ Continued decline of granted building permits, intensifying the supply shortage
▪ Gradual recovery of granted building permits expected by the second half of 2021
Nexity / Webcast – April 28, 2021 Sources: Commissioner-General for Sustainable Development
5DEVELOPMENT
Residential Real Estate
Nexity new home reservations in France
(in units)
21,837 21,077
▪ Total reservations
19,609 including subdivisions and international
+7% 4,484 units, +7% in volume and +12% in value
Compared to Q1 2020
• o/w subdivisions: 338 reservations (-6%) for
3,897 €29m (-4%)
3,618 3,883 3,657 • o/w international: 249 reservations (+51%) for
2018 2019 2020 2021 €41m
(in value)
4,362 4,514
3,915
▪ Nexity's new home reservations up, reflecting the
+11% dynamic individual and institutional investors’
Compared to Q1 2020
demand.
882
715 773 792
2018 2019 2020 2021
Q1
Nexity / Webcast – April 28, 2021 6DEVELOPMENT
Residential Real Estate
Client mix
Volume
(in units)
+7%
Base 100 3,897
3,657
20% 20%
Social housing operators: +11%
19% Bulk sales: +4%
7%
5% Institutional investors: -15%
31%
49% 53% Individual investors: +15%
34% Retail sales: +7%
3% 3% Other homebuyers: +14%
2%
23% 19% First-time buyers: -10%
13%
2020 Q1 2020 Q1 2021
▪ Growing individual investors’ reservations
▪ Institutional sales one-off down (that should smooth during the year)
Nexity / Webcast – April 28, 2021 7DEVELOPMENT
Residential Real Estate
Supply for sale
Current supply for sale
(in units, excluding International)
9,005 8,859
8,651 2% 1% -4%
6,988 26% 7,242 6,959
6,773 31% 1%
2% 6,438 1%
5,313 37% 34%
5,058
52% 4,293
4,202
3,663 3,542
67% 73%
62% 65%
46%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021
New homes in project phase New homes under construction Completed new homes
▪ Decrease of the supply for sale due to the lengthening of the building permitting process
▪ Gradual improvement expected of the building permit issuance by the second half of 2021, in an undersupplied market
Nexity / Webcast – April 28, 2021 8DEVELOPMENT
Residential Real Estate
Residential real estate development pipeline
(in €bn)
18.5
17.0 17.5
5.8 Backlog*: -3% Steady backlog
4.6 5.6 Compared to the end of 2020
c.1.8 year of revenue
Business potential
Business potential**: -7%
12.4 12.8 11.9 Compared to the end of 2020
c. 3.8 years of revenue
▪ France: €10.7bn (down 8%)
▪ International: €1.2bn (up 4%)
December 2019 December 2020 March 2021
▪ The Residential Real estate Development pipeline represents 5.6 years of revenue
Note: These indicators are calculated on the basis of the revenue over 12 sliding months.
* Represents the Group’s backlog expressed in revenue and in month’s business activity - Operational reporting (IFRS financial statement with joint-venture proportionately consolidated)
** Represents the total business volume at a given date (expressed in the number of homes and/or revenue excluding taxes), future Residential Real Estate Development projects (new homes, subdivisions and international) approved by the Committee, in all structuring phases, including
Villes & Projets ; the business potential includes the Group’s current supply for sale and its future supply (project phases not yet marketed on purchased land, and projects not yet launched associated with land secured under options).
Nexity / Webcast – April 28, 2021 9DEVELOPMENT
Commercial Real Estate
Commercial real estate development
Order intake Pipeline
(in €m excluding VAT) (in €m excluding VAT)
400 2,903 2,795
301 Backlog*: +10%
1,032
1,138 Compared to the end of 2020
2.3 years of revenue
260
1,871
Business potential**: -11%
3 41 1,657 Compared to the end of 2020
3.3 years of revenue
Q1 2020 Q1 2021 2021 Target
Paris Region Rest of France December 2020 March 2021
▪ Significant orders taken in Q1 2021, notably the ▪ The Commercial real estate development pipeline
Reiwa building in Saint-Ouen (93), lifting of represents 5.5 years of revenue
resolutory condition (final building permit).
Note: These indicators are calculated on the basis of the average annual revenue over 5 years for the Commercial real estate.
* Represents the Group’s backlog expressed in revenue and in month’s business activity calculated on the basis of the 2016-2020 average annual revenue - Operational reporting (IFRS financial statement with joint-venture proportionately consolidated)
** Represents the total business volume at a given date (in revenue excluding taxes and in month’s business activity calculated on the basis of the 2016-2020 average annual revenue), future Residential Real Estate Development projects, approved by the Committee, in all structuring
phases, including Villes & Projets ; the business potential includes the Group’s current supply for sale and its future supply (project phases not yet marketed on purchased land, and projects not yet launched associated with land secured under options).
Nexity / Webcast – April 28, 2021 10DEVELOPMENT
Commercial Real Estate
Reiwa, future Nexity’s headquarters in Saint-Ouen (93)
▪ Building of an office and services property comprises
about 25,000 sqm
▪ Off-plan sale signed in December 2020 / resolutory
condition lifted in March 2021 (final building permit)
▪ Completion: Q4 2023
Certifications & labels
▪ HQE Excellent
▪ BREEAM Excellent
▪ E+ C-
▪ BBC EFFINERGIE 2017
▪ WIRED SCORE
Nexity / Webcast – April 28, 2021 11SERVICES
Property management and Distribution
Condominium Management Student residences - Studéa
(in thousands of units under management)
125 residences, i.e. more than 15,000 apartments
2020 Q1 2021 92.3% occupancy rate in March 2021*
Condominium
703 698 (3,9% decline compared to March 2020)
management
Rental 173 173
management
876 871
Shared office space - Morning
- 0.6%
25 Morning spaces
Property Management 70% occupancy rate in March 2021*
(in million of sq.m under management) (steady compared to December 2020)
+1.8%
19.5 19.7 20.1
10,6 11.7 12.1 Distribution
1,344 reservations (+32% compared to Q1 2020)
8.0 8.0 8.0
2019 2020 Q1 2021
Rental management Technical management
Nexity / Webcast – April 28, 2021 * Monthly occupancy rate 12FINANCE
Q1 2021 Revenue
A strongly rising Q1 2021 due to the Development activities
(in €m)
+345
▪ Residential real estate strongly rising
1,132
+11
▪ Half explained by the base effect with the construction
+139
sites being stopped from March 15, 2020
+194
787 ▪ Half explained by an increasing business activity,
685
resulting from the high backlog and from a brisk pace
of signing of notarial deeds
491
195
57
▪ Commercial real estate: high contribution from the Reiwa
239 250 order
Q1 2020 Residential Real Commercial Real Services and Q1 2021
Estate Development Estate Development other activities
The Q1 2021 Revenue includes €104m from Ægide-Domitys and Century 21 France.
Nexity / Webcast – April 28, 2021 13OUTLOOK
Ægide-Domitys – disposal process
Exclusive negotiations
121
113 ▪ Disposal of control of the Ægide-Domitys group
100 37
83 41 ▪ Transaction amount: €375m (enterprise value for 100%
72 42 of the share capital of Ægide-Domitys)
59
52 ▪ Completion of the transaction expected around the end
41
36 84 of the first half 2021
72
25 58
▪ Nexity retains a 18% stake in Ægide-Domitys
2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1
2021
▪ Strategic partnership for the development of senior
Residences opened for more than 2 years
residences
Residences opened for less than 2 years
121 residences (+8 during Q1 2021), totaling around 14,100 apartments
The rolling 12-months occupancy rate stands at 84.1% at end-March 2021
(vs 84.8% at end-2020)
Nexity / Webcast – April 28, 2021 14OUTLOOK
2021 Guidance confirmed
including the expected effect of disposals
Ongoing exclusive negotiations
▪ With AG2R La Mondiale for the disposal of a majority stake in Ægide-Domitys (100% enterprise value of €375 million) around
the end of the first half of 2021, with Nexity retaining 18% of the share capital.;
▪ With Arche for the disposal of Century 21 France (100% enterprise value of €84m), closing the strategic review initiated at year-
end 2020.
P&L
▪ Revenue of at least €4.6bn taking into account the deconsolidation of Ægide-Domitys expected by the end of H1 2021, which is
at least equivalent to 2020 revenue on a like-for-like basis.;
▪ Current operating profit expected to rise sharply relative to 2020, to €350 million (+23%) at least.
Business Activity
▪ Residential Real Estate: around 20,000 new home reservations in France, despite a supply shortage;
▪ Commercial Real Estate: order intake of €400m excluding VAT.
Proposed dividend of €2 per share in respect of 2020*
Nexity / Webcast – April 28, 2021 * Proposal subject to the Shareholders’ approval during the AGM (on May 19, 2021) 15Appendix
DEVELOPMENT
Residential Real Estate
Change in new home reservations in France
(in units)
168.481 167.101 166.980
156.749
125.474 125.476 128.031 ~128.000
103.151 107.558
100.181
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e
Bulk sales Retail sales
An undersupplied market
Source: French Federation of Developers (FPI) for 2011-2020 / Nexity’s estimates for 2021
Nexity / Webcast – April 28, 2021 17DEVELOPMENT
Residential Real Estate
Nexity reservations in France by area – Q1 2021
VOLUME VALUE
(in units) (in €m including VAT)
+7% +11%
3.883 3.897 882
3.657
773 792
29% 29% 34%
29%
Paris Region 39%
37%
71% 71% 71% Rest of France 66%
63% 61%
Q1 2019 Q1 2020 Q1 2021 Q1 2019 Q1 2020 Q1 2021
Nexity / Webcast – April 28, 2021 18DEVELOPMENT
Residential Real Estate
Nexity new homes: price trend
Retail sales average prices
(in €‘000 including VAT)
290.5 295.6
Paris Region: +1.7%
267.3 265.8
257.4 261.5
251.8
France: +5.4%
238.9
231.0 226.5
218.0 223.8 Rest of France: +7.6%
213.6 210.5
206.8
192.0 196.7
184.2
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021
Bulk sales Q1 2020 Q1 2021 Change
Retail sales Q1 2020 Q1 2021 Change
Average price incl. VAT per home (in €’000) 154.8 182.1 +18%
Average price incl. VAT per sqm (in €) 4,305 4,459 +3.6%
Average surface area per home (in sqm) 56.4 56.5 +0.2%
Average price incl. VAT per home (in €’000) 242.7 251.8 +3.7%
Production sold, incl. bulk sales Q1 2020 Q1 2021 Change
Average price incl. VAT per home (in €’000) 216.5 226.3 +5%
Nexity / Webcast – April 28, 2021 19OUTLOOK
Development Pipeline
(in €bn)
-5%
21.4
20.4 20.3
5.1 6.8 Backlog*: stable
6.8 Compared to 2020
1.9 year of revenue***
Business potential**: -7.6%
15.3 14.6 Compared to 2020
13.5
3.7 years of revenue***
December 2019 December 2020 March 2021
▪ The Development pipeline represents 5.6 years of revenue and provides good visibility on the Group's future activity
* Represents the Group’s backlog expressed in revenue and in month’s business activity - Operational reporting (IFRS financial statement with joint-venture proportionately consolidated)
** Represents the total business volume at a given date (expressed in the number of homes and/or revenue excluding taxes), future Residential Real Estate Development projects (new homes, subdivisions and international) and in Commercial Real Estate projects, approved by the Committee,
in all structuring phases, including Villes & Projets ; the business potential includes the Group’s current supply for sale and its future supply (project phases not yet marketed on purchased land, and projects not yet launched associated with land secured under options).
*** Calculated on the basis of the revenue over 12 sliding months for Residential Real Estate and on the annual average over 5 years for the Commercial Real Estate.
Nexity / Webcast – April 28, 2021 20FINANCE
Q1 2021 Revenue breakdown
(in €m) 1,132
1
Ohter activities
250 Services
881
1 787
233 0 195 Commercial real estate Development
239
95
57
686 Residential real estate Development
553 491
Q1 2019 Q1 2020 Q1 2021
The Q1 2021 Revenue includes €104m from Ægide-Domitys and Century 21.
Nexity / Webcast – April 28, 2021 21SERVICES
Ægide-Domitys
Balance sheet Income statement
(in €m) 2020
Ægide-
Assets Serviced
(en millions d'euros) Domitys Development Other activities
Goodwill 185 residences
2020
Right-of-use assets 707
Revenue 400.8 156.0 244.8 -
Other non-current assets 85
EBITDA 89.6 14.5 78.7 (3.6)
Net deferred tax 34
Non-current assets 1,011 EBITDA after lease payments (2.8) 13.8 (11.5) (5.1)
Net WCR (56)
Operating profit (3.4) 15.4 (13.8) (4.9)
Total assets held for sale 955
Net financial income/(expense) (22.4) (0.9) (19.2) (2.3)
Pre-tax reccuring profit (25.7) 14.5 (33.0) (7.2)
(in €m) 2020
Liabilities
Other non-current liabilities 3
Provisions 2
Net financial debt 105 ▪ Due to the process under way for the sale of Ægide-Domitys and the likelihood that it
Lease liabilities 772 will be carried out within the next 12 months, the Group is applying IFRS 5 (Assets Held
Total net debt (IFRS 16) 877 for Sale and Discontinued Operations), which requires the assets and liabilities of
Total liabilities held for sale 882 Ægide-Domitys to be presented separately from other continuing operations in the
balance sheet. However, the income statement is not restated.
Net assets held for sale 73
Nexity / Webcast – April 28, 2021 22FINANCE
Debt maturity schedule updated post-2028 convertible bond issuance
Issuance of Bonds Convertible into new shares and/or Bond issues and commitments to buyback minority interests
Exchangeable for existing shares (OCEANES) on schedule*: €1,209m
April 13, 2021 due April 2028 for €240 million (in €m)
▪ At the same time, 93% of the EUR 270 million
OCEANE 2023 issue was redeemed. 270
321(3)
▪ Stronger financial structure: 240 million debt
extended to 2028, taking advantage of a low 240(6)
interest rate (0.875% per year).
159(1) 164(2) 156(5)
▪ After the upcoming buyback of the entire 2023
Series, the potential dilution will be reduced from 68 84(4)
9.5% to 7.5% of the existing share capital (in case of
17
delivery of new shares only).
2021 2022 2023 2024 2025 2026 2027 2028
▪ Limited repayments in 2020 and 2021
(1) Of which €146m of bonds issued in May 2014 (2021)
(2) €30m bonds issued in June 2017 (2023)
(3) €121m bonds issued in June 2017 / €200m convertible bonds issued in March 2018 (2025)
(4) €84m bonds issued in December 2019 (2026)
(5) €156m bonds issued in December 2019 (2027)
(6) €240m convertible bonds (including equity component) issued in April 2021 (2028)
* According to the valuation and provisional timetable of the execution of the commitments, excluding the commitment to buy out
Nexity / Webcast – April 28, 2021 minority shareholders Ægide-Domitys 23OUTLOOK
Changes in Nexity’s governance
Executive management team
• Separation for Mr Alain Dinin of the roles of Chairman of the Board of Directors and Chief Executive Officer
• Appointment of Mrs Véronique Bédague as Chief Executive Office, and a director(*)
• Appointment of Mr Jean-Claude Bassien, already Deputy CEO in charge of Services, as company officer
• Departure of Mr Julien Carmona after the AGM
Board of Directors
• Renewal(*) of the Director term of office of Mrs Soumia Malinbaum
• Appointment(*) as a Director of Mrs Myriam El Khomri to replace Mr Jacques Veyrat
• Appointment(*) as a Director (legal entity) of Crédit Mutuel Arkéa to replace Mr Jean-Pierre Denis
(*) Proposal subject to the Shareholders’ approval during the AGM (on May 19, 2021)
Nexity / Webcast – April 28, 2021 24Nexity’s shareholder structure
(Situation as of April 15, 2021)
Crédit Mutuel Arkéa 5.3%
0.5% A. Dinin, New Port(2) and other Nexity’s Concert group
1.2%
managers belonging to the Concert group 12.3% 19.7%
0.2%
La Mondiale 2.1%
0.3%
56,129,724 FCPE and other employees(3) 3.3%
shares(1) 0.6%
Crédit Agricole Assurances 6.4%
6.9%
Free float 68.6%
(1) o/w treasury shares: 864,774 shares (1.54%)
(2) New Port: 5,12% La Mondiale holds 2.1%(4) of Nexity’s capital and joins the Concert group
(3) o/w FCPE Nexity Actions and Nexity Levier 2017: 2.9%
(4) Displayed intention to reach 5% of the capital.
Nexity / Webcast – April 28, 2021 2519, rue de Vienne 75 008 Paris
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