NEXITY INVESTOR PRESENTATION JANUARY 2018

Transcription

1 NEXITY INVESTOR PRESENTATION JANUARY 2018

2 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. None of the Company, its shareholders, its 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 were used to determine these objectives are subject to modification due to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks described in section 2 in the Document de Référence, filed with the AMF under number D on 6 April 2017, 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. NEXITY / Investor presentation - January 2018 P.2

3 CONTENTS 1. NEXITY AT A GLANCE 2. 9M 2017 MARKETS AND BUSINESS ACTIVITY 2.1 RESIDENTIAL REAL ESTATE 2.2 COMMERCIAL REAL ESTATE 2.3 SERVICES 2.4 LARGE URBAN PROJECTS 3. FINANCIALS 4. OUTLOOK 5. APPENDIX NEXITY / Investor presentation - January 2018 P.3

4 1. NEXITY AT A GLANCE

5 2016 RESULTS* REVENUE (in m and in %) CURRENT OPERATING PROFIT (in m) AND MARGIN RATE (in % of revenue) 307 (10%) 2,267 (74%) 494 (16%) 3, (16%) 307 (10%) ,267 74% (74%) % % 57 (18.6%) 203 (9.0%) 203 9,0% 45 (9.1%) 266* 8.7% 45 (9.1%) 57 (18.6%) 203 (9.0%) * o/w - 39m for Other activities Residential Commercial Services Other activities * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.5

6 NEXITY KEY FIGURES ( )* RESIDENTIAL REAL ESTATE NEW HOME RESERVATIONS (in volume) 12,562 14,235 18, % vs 2014 GROUP REVENUE ( m) 2,632 3,057 3, % vs ,283 BACKLOG ( m) 3,293 4, % vs CURRENT OPERATING PROFIT ( m) AND MARGIN % 7.2% % % vs pt vs 2014 * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.6

7 REVISED 9M 2017 SUMMARY (1) 2017 Guidance (2) NEW HOME RESERVATIONS IN FRANCE +18% In volume +23% In value Growth in a French market expected slightly up, market share increase of more than 1 point COMMERCIAL REAL ESTATE ORDER INTAKE 143m > 350m CONSOLIDATED REVENUE +11% 2.25 bn Up ~10% BACKLOG FROM DEVELOPMENT ACTIVITIES +11% 4.5 bn > Revised current operating profit: at least 300m in 2017 (versus 300m before) (1) According to IFRS with joint ventures proportionately consolidated (2) Guidance announced on 22 February 2017, partially revised up on October 2017 NEXITY / Investor presentation - January 2018 P.7

8 FRENCH GOVERNMENT S HOUSING STRATEGY TOPICS Buy-to-let investment BOOSTING DEMAND: MAIN MEASURES AND EXPECTED IMPACT (+/-) FOR NEXITY Pinel scheme Renewed for a further four years (until 31 December 2021) in supply-constrained areas: A, A bis and B1 (+) Renewed until 31 December 2018 in non supply-constrained areas provided that building permit request has been submitted before 31 December 2017 Censi-Bouvard scheme (student and senior housing) Renewed until 31 December 2018 NEXITY FIGURES > 9M 2017: 93% of reservations under the Pinel scheme in supplyconstrained areas (~25% of total reservations) First-time home ownership PTZ interest-free loans Renewed for a further four years for new-build properties in supply-constrained areas (+) Renewed for a further two year for new-build properties in zone B2 and C (for 20% of the total purchase price) APL - Personal housing benefits Elimination of APL for first-time buyers (-) > 9M 2017: 97% of PTZ interest-free loans in supply-constrained areas for first-time buyers (11% of total reservations) Social housing Budget for APL personal housing benefits decreased by 1.5 billion over 3 years o/w 800m in Increase in VAT for social housing (10% vs 5.5% previously) - potential impact on property acquisitions by social landlords (- /? ) Improvement in financing conditions for social housing operators > 9M 2017: ~20% of total reservations with social housing operators Taxes Replacement of the solidarity tax on wealth (ISF) by the tax on immovable assets (IFI): refocusing of wealth tax on real estate only (- /? ) Corporate income tax: gradual reduction in the corporate income tax rate to 25% (from 33 1/3 %) (+/? ) 2017 Corporate income tax: exceptional one-off contribution for large companies (-) > Effective tax rate in 2016: 37% NEXITY / Investor presentation - January 2018 P.8

9 FRENCH GOVERNMENT S HOUSING STRATEGY TOPICS Constructibility standards and procedures IMPROVING SUPPLY: MAIN MEASURES AND EXPECTED IMPACT (+/-) FOR NEXITY Construction of homes 80,000 new homes: 60,000 for students and 20,000 for career starters (+) More flexibility for intermediate housing (+) Standards and procedures No new amendments to technical standards (+) Building permits: reduced time frames for appeals; penalties for abusive appeals (+) Urban planning for projects (faster completion of projects owing to simplified standards) (+) NEXITY FIGURES > Leading French developer in student residences and intermediate social housing > H1 2017: 2,300 homes frozen by building permit appeals Taxes Freeing up of private land for the development of homes (+) For individuals: tax relief for three years on the sale of land in supply-constrained areas For companies: extension of the reduced 19% corporate income tax rate until the end of 2020, for all sales of professional premises or subdivisions Freeing up of public land (+) > H1 2017: ~40% of land acquired from individuals > 2018 Finance Bill approved on 21 December 2017 > Approval of the Housing Bill planned for the first half of 2018 NEXITY / Investor presentation - January 2018 P.9

10 HOUSING: PUTTING GOVERNMENT SUBSIDIES INTO PERSPECTIVE AN IMPORTANT SOURCE OF TAX REVENUE (in bn) PUBLIC EXPENDITURE LOWER THAN CONTRIBUTIONS WEIGHING ON THE SECTOR AND ONLY MARGINALLY BENEFITING THE DEVELOPMENT MARKET (in bn) Transfer duties Taxes paid by occupiers Taxes paid by landlords Development-related taxes (VAT, ) Source: Commission Nationale des Comptes du Logement, 2016 / 2017 reclassified by Nexity Individual housing benefits Other tax break & expenses (mainly reduced VAT on works) Direct support to social housing Direct support to new homes market (private) (Pinel, PTZ, ) NEXITY / Investor presentation - January 2018 P.10

11 A SECTOR SUFFERING FROM A HIGH TAX BURDEN AT THE ACQUISITION 27% of the price TO 10 YEARS DETENTION (for rental housing) 29% of the price 20% of the price 20,000 20% of the price 32,000 10% of the price 18,000 16% of the price 7,000 8,000 22,500 18,000 21,700 38,000 24,000 32,000 2,000 France Germany United Kingdom France Germany United Kingdom VAT or equivalent Indirect taxes & registration fees 10-year property tax Taxes and social contributions Source: FPI, FIDAL study October 2014 / For an apartment at 200,000 incl. VAT NEXITY / Investor presentation - January 2018 P.11

12 FAVORABLE DEMOGRAPHICS NUMBER OF HOUSEHOLDS IN METROPOLITAIN FRANCE (in millions) CAGR +0.9% +6m > 58% of households own their main residence In 2016: e 2030e 2040e > 1.93 children per woman, highest rate in Europe > +265,000 inhabitants (+0.4% compared to 2015) Between now and 2040: > 50% of households earn less than 28,915 net per year > Single-parent families (3) represent 9% of households (+33% since 1999) and 14% of families with at least 2 persons (+2 pts since 1999) > 7 million more inhabitants and 6 million more households > a potential and sustainable demand for new homes in the range of 350k per year over the next 25 years (1), compared to 267k actual new dwellings in 2014 (2) > 60 years and over account for 25% of the population (+14% since 2010) (1) Excluding the impact of internal migration, which is not quantified (2) At end November, on a 12 month period - source: Commissariat Général au Développement Durable, Chiffres & statistiques 593 (3) A single-parent family includes a living relative without a spouse with one or more children Sources: Insee 2010, 2012 and Bilan démographique 2016 ; Insee Première 1663 ; Insee Focus 73 ; Insee Couples-Familles-Ménages en 2014 ; Insee Revenu médian par ménage 2011 NEXITY / Investor presentation - January 2018 P.12

13 REGIONAL POPULATION DYNAMICS ANNUAL POPULATION GROWTH RATE (in %) CURRENT ZONING 0.6 à 1.15 A bis zone 0.3 à 0.6 A zone 0 à 0.3 B1 zone -0.3 à 0 B2 zone à -0.3 C zone Sources: INSEE, Omphale 2017; Ministère de la cohésion des territoires NEXITY / Investor presentation - January 2018 P.13

14 SUPPLY-CONSTRAINED ZONES IN FRANCE 88% of new home reservations in 9M % of Nexity s reservations in Pinel and PTZ in 9M % of households 6% of the territory* * based on the total number of municipalities in continental France as of 1 January 2016 Source: INSEE, 2014 survey ; Ministère de la cohésion des territoires NEXITY / Investor presentation - January 2018 P.14

15 NEXITY: THE LEADING FRENCH REAL ESTATE DEVELOPER 2016 COMMERCIAL ACTIVITY 3,645 ORDER INTAKE (in m, incl. VAT) (residential + commercial) 3,292 2,884 1,814 1,115 RESIDENTIAL NEW HOME RESERVATIONS (in units) 18,890 13,866 10,011 8,017 5,665 Nexity Bouygues Immobilier* Altarea Cogedim Kaufman & Broad Icade** Nexity Bouygues Immobilier Altarea Cogedim Kaufman & Broad Icade 2016 FINANCIALS Real Estate Development (residential + commercial) REVENUE (in m, excl. VAT) 10.1% EBIT MARGIN 2,574 2, % 1,370 1,238 1, % 6.5% 5.5% Nexity Bouygues Immobilier Altarea Cogedim Kaufman & Broad Icade Nexity * Based on an order intake of 2,838m excl. VAT released by Bouygues Immobilier, estimated at 3,292m incl. VAT by Nexity ** Icade Commercial real estate order intake not published Sources : company press releases of the sample (based on company-specific methods) NEXITY / Investor presentation - January 2018 P.15

16 NEXITY RESIDENTIAL MARKET SHARES (PRE-SALES) NEXITY MARKET SHARE AT 31 DECEMBER 2016 MARKET SHARES OF THE LEADING PLAYERS IN THE FRENCH NEW HOME MARKET IN 2016* 16.4% 17.0% 15.7% 12.5% Nexity 10.9% Bouygues Immobilier** 10.0% 6.5% Others 11.6% 7.9% 57.9% Altarea Cogedim 6.3% Kaufman & Broad Icade (4.5%) 63.0% Market shares calculated by Nexity New home reservations market source: Commissariat Général au Développement Durable (ECLN) * Based on the latest figures released by the ECLN ** Including subdivisions and commercial premises (excluding international) NEXITY / Investor presentation - January 2018 P.16

17 FINANCIAL MODEL FOR RESIDENTIAL DEVELOPMENT Projects phases Purchase option on land Administrative set-up: M 0 to M 12 Pre-sales phase: M 6 to M 12 Purchase option exercise Start of works Sales phase, transfers of ownership, construction: M 12 to M 36 Delivery 100% Nexity: 79% in 9M % At least 60% 40% At least 40% M 6 M 0 M 12 * According to the percentage-of-completion method M 36 Payment schedule 5% upon reservation 1 st transfers of ownership for reservations made during the pre-sales phase 30% at completion of foundations 35% 25% at completion at completion of construction of all works except for water connections > No land bank: option-based model > Forward sales help de-risk development NEXITY / Investor presentation - January 2018 P.17 5% at key handover

18 CASH FLOW PROFILES FOR VEFA OFF-PLAN SALES RESIDENTIAL REAL ESTATE for individual clients Cash inflows RESIDENTIAL REAL ESTATE for social housing operators, with progress payments COMMERCIAL REAL ESTATE Purchase of land Cash outflows Q1 Q2 Q3 Q4-56 Q Q6-85 Q7-100 Q8 Q Purchase of land Q2 Q3 Q Q5-64 Q6-78 Q7-100 Q Purchase of land Q1 Q2 Q3 Q4 Q5-68 Q6-84 Q7-100 Q8 Net cash Assumptions by Nexity, basis of 100 NEXITY / Investor presentation - January 2018 P.18

19 RESIDENTIAL REAL ESTATE: A MULTI-ENGINE GROWTH STRATEGY NEXITY S MARKET SHARE GROWTH*: A PROVEN ORGANIC GROWTH TRACK RECORD 7.6% 8.6% 8.8% 9.7% 10.6% 10.9% 11.5% 12.1% 11.8% 12.4% 11.7% 12.5% >+1 pt >13.5% Target EXTERNAL GROWTH AND PARTNERSHIPS > Acquisition in 2016 of a 55% majority stake in Edouard Denis capital > Developer, entrepreneur, multiregional > 1,380 reservations in 9M 2017 (~1,450 reservations** in 2016), strong growth potential > Acquisition in 2014 of a 76% majority stake in PERL s capital > ~1,000 reservations in bare ownership in 2016, +33% revenue growth vs 2014 > Real estate as based on use rather than ownership > Acquisition in 2016 of a 65% majority stake in Primosud s capital (Aix-en- Provence, Marseille, ) partners > New service offering for local real estate developers launched end-2016 > Joint-ventures with Nexity > Be an accelerator for development > Be the leading player in real estate services * 2017 traget revised up in October Nexity s market sahre is based on net new homes reservations as a proportion of ECLN market size data - New figures following the 2017 recast of the Enquête sur la commercialisation des logements neufs (ECLN, a French survey of new home sales) now called ECLN2 published in May 2017 ** on a full-year basis and excluding consolidation adjustments NEXITY / Investor presentation - January 2018 P.19

20 NEXITY S EVOLVING BUSINESS MODEL 2004 One-product company (pure property developer) 2007 Property developer + Service provider 2012 Single brand: Integrated real estate operator 2017 Becoming a truly comprehensive real estate services provider ( Real Estate Services Platform ) Customer-centric organisation Provider of recurring and value-added services Growth in all business lines Increased connectivity between business lines Strong customer focus Strong market positions Continuous improvement Growth initiatives Cross-selling New packaged offerings Aided by digital transformation Data-driven model NEXITY / Investor presentation - January 2018 P.20

21 NEXITY: AN UNIQUE SERVICE OFFERING TO THE INDIVIDUAL CLIENT Buy Acheter Invest Condominium management Espaces communs Property Management Louer Rent Transaction Serviced residences Franchises network NEXITY / Investor presentation - January 2018 P.21

22 A PLATFORM OF SERVICES FOR COMMERCIAL AND LOCAL AUTHORITY CLIENTS Buy Developer COMMERCIAL Transaction Urban Regeneration Property Management LARGE PROJECTS Upgrade Reconversion Choice of premises LOCAL AUTHORITY Smart City NEXITY / Investor presentation - January 2018 P.22

23 INNOVATION INTRAPRENEURSHIP Nexity is committed to internal innovation Ywood wood-frame offices, Occupancy costs guarantee, Blue Office co-working spaces, Bien ici Eugénie, Start-up Studio, Loggy SOURCING START-UPS Partnerships with start-ups Zenpark s shared parking, Stimergy s digital boilers, Spicesoft, Realiz3D Open de l innovation INVESTMENT IN FUNDS With Demeter, Newfund and Elaia, Nexity is seizing opportunities in renewable energy, smart cities and digital transformation OPEN INNOVATION Together with its partners such as Paris&Co and Impulse Partners, Nexity is using real-world tests and business incubation to build cities for the future Nexity invests 20m per year in digital and innovation projects NEXITY / Investor presentation - January 2018 P.23

24 A MANAGEMENT TEAM TO IMPLEMENT NEXITY S STRATEGY Alain Dinin Chairman and CEO Julien CARMONA Deputy Chief Executive Officer in charge of INTERNAL CLIENT Véronique BÉDAGUE Company Secretary in charge of COMMERCIAL AND LOCAL AUTHORITY CLIENTS Jean-Philippe RUGGIERI Deputy Chief Executive Officer in charge of INDIVIDUAL CLIENT Frédéric VERDAVAINE Deputy Managing Director in charge of INDIVIDUAL CLIENT Group support functions (Finance, Legal, HR, Digital, etc.) Group support functions (General Secretariat, HR) Development of new homes (Nexity, PERL, Iselection, E. Denis ) Subdivisions Property management, Management of residences (Studéa) Strategy and Innovation International Commercial real estate development Offices, warehouses, retail premises, hotels, etc. Property management and advisory services for commercial real estate Villes & Projets Urban planning, project management for urban regeneration and smart city development Franchise networks (Century 21, Guy Hoquet) Categories for financial communication: Residential real estate Services Commercial real estate Other activities Nexity s new Strategic Plan presentation in February 2018 NEXITY / Investor presentation - January 2018 P.24

25 BEING USEFUL TO OUR INDIVIDUAL CLIENTS BY OFFERING AFFORDABLE AND HIGH-PERFORMANCE HOMES > Facilitate access to housing: home ownership, social rented housing, housing for every stage of life > Offer efficient housing: energy-efficient and healthy buildings and upgraded condominiums > Share innovative mobility solutions: carsharing / Zenpark TO OUR COMMERCIAL CLIENTS BY DELIVERING OFFICES THAT CREATE VALUE > Design efficient offices: ecodesign, refurbishment > Ensure sustainable use of offices: enhanced performance, consumption measurement and guarantee > Understand new behaviors: nearby offices and coworking, new workspaces TO OUR LOCAL AUTHORITY CLIENTS BY CONTRIBUTING TO THE ATTRACTIVENESS OF REGION AND DISTRICTS > Reinvent neighbourhoods: urban regenration, social an functional mix > Value and maitain territories : eco-responsible building sites, sustainable planning, value and biodiversity > Pooling ressources NEXITY / Investor presentation - January 2018 P.25

26 NEXITY S OWNERSHIP STRUCTURE 7 NOVEMBER ,855,044 shares* Crédit Mutuel Arkéa A. Dinin, New Port** and other Nexity managers in the concert group 5.4% 12.5% 3.3% FCPE and other employees 17.9% actions* 6.4% Crédit Agricole Assurances 72.3% Free float * o/w 48,000 treasury shares (0.1%) ** New Port 6.4% NEXITY / Investor presentation - January 2018 P.26

27 2. MARKETS AND BUSINESS ACTIVITY 9M 2017

28 2.1 RESIDENTIAL REAL ESTATE

29 Q Q Q Q Q Q Q Sept.17 MARKET DRIVERS MORTGAGE RATES (all markets, excl. insurance, last month of the quarter, average) MONTHLY CONSUMER CONFIDENCE SURVEY SYNTHETIC INDEX (data corrected for seasonal variations) 5.07% % 95 Average: % 1.56% % 0.18% 0.99% 0.76% Mortgage rates TEC 10 (average rate over the period) Sources: Observatoire Crédit Logement and Finance Active Source: INSEE NEXITY / Investor presentation - January 2018 P.29

30 CASE STUDIES SENSITIVITY TO MORTGAGE RATES GROWTH RETURN RATE FOR AN INVESTOR IN PINEL SCHEME > Acquisition in VEFA, A zone, 200,000 incl. VAT > 2 people household + 1 child, 3,460 monthly income > Financing: 100% loan over 20 years > Mortgage rate of 1.58% excl. insurance > Mortgage rate: 1.75% excl. insurance > Management fees: 12.60% > Tax bracket: 30% > Annual rent increase: +0.50% MONTHLY INSTALLMENT (in euros) At the end of the 10 th year of detention Cergy (95) A zone 67 sq.m 238,900 incl.vat Marseille (13) A zone 63 sq.m 205,500 incl.vat Initial equity 10% 0% 10% 0% Average rent ,068 1,168 Gross rental income 3.5% 3.5% 4.0% 4.0% Average monthly expenditure Debt ratio Aug bps 28% 31% bps 34% IRR (after asset revaluation +0.5% / year) 11.9% 19.8% 13.8% 25.8% Source: Nexity figures given for illustrative and indicative purpose only IRR: assuming a rental term of 9 years, allowing for a tax benefit of 18% NEXITY / Investor presentation - January 2018 P.30

31 Nov.-15 Nov.-16 Nov.17 Nov.-15 Nov.-16 Nov. 17 FRENCH RESIDENTIAL MARKET RECOVERY UNDERWAY BUILDING PERMITS (in number of units, 12 months rolling) HOUSING STARTS (in number of units, 12 months rolling) +11.4% 504, % 418, , ,450 Source: Commissariat Général au Développement Durable (CGDD) NEXITY / Investor presentation - January 2018 P.31

32 RESIDENTIAL MARKET: SALES & NEW SUPPLY SALES AND NEW SUPPLY AT 30 SEPTEMBER 2017 (number of apartments, in units) 40,000 Sales New supply 35,000 30,000 25,000 20,000 15,000 Q sales Stable vs Q Q new supply -11% vs Q ,000 Q Q > Over the first 9 months, the new housing market is up 2% vs 9M 2016 (93,039 reservations) Source: Commissariat Général au Développement Durable (Sit@del2 basis) NEXITY / Investor presentation - January 2018 P.32

33 NEW HOME RESERVATION MARKET IN FRANCE (DEVELOPERS) DEVELOPERS NEW HOME RESERVATIONS (in units) +26% 122, ,700 Average : 101, % 127, ,000 28% 30% 75, ,000 37% 109,000 37% 99,100 38% 84,200 85,300 83, ,400 43% 44% 32% 33% 34% 43% 43% 44% 39% 37% 33% 37% 39% 40% 38% 39% 40% 42% 42% 33% 26% 23% 22% 19% 18% 16% 15% 13% e* A, Abis zones B1 zone B2, C zones Supply-constrained areas * Guidance revised up in October 2017 Sources: Commissariat Général au Développement Durable (Sit@del2 basis) - New figures following the 2017 recast of the Enquête sur la commercialisation des logements neufs (ECLN, a French survey of new home sales) now called ECLN2 published in May 2017 Nexity s estimation for 2017 NEXITY / Investor presentation - January 2018 P.33

34 A LONG TERM VIEW ON NEW HOME RESERVATIONS IN FRANCE RESERVATIONS BY PINEL ZONES VOLUMES (in units) +4% +51% 122, ,000 15,893 34,900 (28%) +62% 56,500 (44%) 10,553 7,359 (46%) 39,300 (32%) 48,300 (39%) +37% -65% 53,800 (42%) 16,700 (13%) 5,496 (52%) 3,020 (29%) 2,037 (19%) +34% +115% +1% 6,479 (41%) 2,055 (13%) Market 2006 Market 2016 Nexity 2006 Nexity 2016 A, Abis zones B1 zone B2, C zones A, Abis zones B1 zone B2, C zones Supply-constrained areas Market share: 8.6% 12.5% Source: Commissariat Général au Développement Durable (Sit@del2 basis) - New figures following the 2017 recast of the Enquête sur la commercialisation des logements neufs (ECLN, a French survey of new home sales) now called ECLN2 published in May 2017 NEXITY / Investor presentation - January 2018 P.34

35 9M 2017 NEXITY NEW HOME RESERVATIONS VOLUME (in units) VALUE (in m, incl. VAT) +15.9% +20.8% 159 8,940 1,277 7, ,521 1,491 10,692 14,508 1, % 10,365 12,615 Subdivision International New homes o/w 2016 external growth 22 1, , , ,974 2, , % 1, , M M M M M M 2017 New home reservations in France are up 18% in volume and 23% in value (+7% in volume and +11% in value on a like-for-like basis) NEXITY / Investor presentation - January 2018 P.35

36 NEXITY RESERVATIONS: QUARTERLY CHANGE NEW HOME RESERVATIONS IN FRANCE (in units) +33% +4% +19% 5,201 4,821 4,121 4,288 3,624 3,506 2,506 2,099 2,175 2,368 2,947 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q * On a like-for-like basis: 5% growth in Q (excluding 413 reservations Edouard Denis and Primosud) 6% decrease in Q (excluding 399 reservations Edouard Denis and Primosud) 26% growth in Q (excluding 638 reservations Edouard Denis and Primosud in 9M 2017, and 295 reservations in 9M 2016) * NEXITY / Investor presentation - January 2018 P.36

37 KEY CLIENT SEGMENTS PERFORMANCE VOLUME (in units, on a like-for-like basis) +7% 7,504 10,397 29% +15% 11,165 31% Professional landlords o/w 78% of social landlords 28% 45% +6% 45% Individual investors o/w 56% of Pinel 47% 6% 19% 6% 20% +7% +1% 6% 19% Other home buyers First-time buyers o/w 59% of PTZ 9M M M 2017 > Investors benefiting from Pinel scheme represented around 25% of reservations NEXITY / Investor presentation - January 2018 P.37

38 NEXITY RESERVATIONS IN FRANCE BY AREA VOLUME (in units) VALUE (in m incl. VAT) +18.0% 12, % 2,429 7,504 10,692 38% +20% 39% Paris region 1,483 1,974 46% +22% 45% 38% 46% 63% 62% 61% Rest of France 54% 54% +17% +24% 55% 9M M M M M M 2017 Individual clients reservations (excluding bulk sales) : +3% in Paris region, +19% for the rest of France (on a like-for-like basis -4% in Paris region and +10% for the rest of France) Bulk sales: +61% in Paris region, +9% for the rest of France (on a like-for-like basis +54% in Paris region and -12% for the rest of France) NEXITY / Investor presentation - January 2018 P.38

39 NEXITY NEW HOMES: PRICE TRENDS AVERAGE PRICE (in thousand of euros, excl. Iselection, PERL, International, and bulk sales) Paris region: +2.7% Paris region excl. Paris: +2.0% France: +3.2% Rest of France: +5.1% M M 2017 RETAIL SALES 9M M 2017 Change Average home price incl. VAT per sq.m. 3,784 3, % Average surface area per home (sq.m.) % Average price incl. VAT per home ( k) % BULK SALES 9M M 2017 Change Average price incl. VAT per home ( k) % NEXITY / Investor presentation - January 2018 P.39

40 NEXITY NEW HOMES: SUPPLY FOR SALE CURRENT SUPPLY FOR SALE (in units, excl. International and incl. Iselection and PERL from 2015, Edouard Denis and Primosud from 2016) +21% 8,561* 6,988 2% 52% 3,663 3,542 4,202 4,293 5,058 5,313 7,051* 6,773* 1% 6,438 1% 2% 29% 34% 23% E.Denis and Primosud Completed new homes New homes under construction 46% 70% 64% 76% New homes in project phase M M 2017 * 7,261 units on a like-for-like basis, 24% growth versus 9M external growth: 1,212 units at 30 September ,112 units at 31 December ,300 units at 30 September 2017 NEXITY / Investor presentation - January 2018 P.40

41 NEXITY: BUSINESS POTENTIAL* FOR NEW HOMES In units, excl. International and incl. Iselection, PERL and Villes & Projets from 2015, Edouard Denis and Primosud from YEARS OF ACTIVITY +10% 34,453 44,332** 40,309** 41,813** E.Denis and Primosud 22,824 28% 19,057 21,285 23,143 23,941 23,100 24,832 49% 49% 51% Paris region 72% 51% 51% 49% Rest of France M M 2017 * Includes the Group s current supply for sale, its future supply corresponding to project phases not yet marketed on acquired land, and projects not yet launched associated with land secured through options ** 37,513 units on a like-for-like basis, 3% growth versus 9M external growth: 3,923 units at 30 September ,152 units at 31 December ,819 units at 30 September 2017 NEXITY / Investor presentation - January 2018 P.41

42 RESIDENTIAL REAL ESTATE TRENDS OUR RESPONSES AS A MARKET OPERATOR TRENDS > Very low interest rates: 30% gain in real estate purchasing power since 2009 > Stimulus measures boosting demand (Pinel, PTZ) > Increases in building permits. Grand Paris project and similar projects in other large French cities 2017/2018 CHALLENGES > Slowly rising interest rates, absorbable if 1 pt > Stable selling prices > Risk of higher land prices and construction costs. Vigilance and tightening of commitment conditions > Approval of the Housing Bill planned for the first half of 2018 MEDIUM-TERM RESPONSES > Differentiation through innovation > Rethinking real estate as based on use rather than ownership (e.g.perl ) > Heightened focus on affordable housing > Partnerships (local authorities, planners, developers ) NEXITY / Investor presentation - January 2018 P.42

43 2.2 COMMERCIAL REAL ESTATE

44 COMMERCIAL REAL ESTATE MARKETS TAKE-UP IN PARIS REGION (in millions of sq.m.) % M 2017 FRENCH COMMERCIAL REAL ESTATE INVESTMENTS (in billions of euros) M % Offices off-plan sales: ~ 2.4 bn in 9M 2017 incl. 40% of speculative investments Sources: CBRE Marketview Investments France and Paris region offices Q NEXITY / Investor presentation - January 2018 P.44

45 COMMERCIAL REAL ESTATE NEW ORDER INTAKE AND BACKLOG ORDER INTAKE (in m) BACKLOG (in m) 544 Average : % M Target 31 Dec. 17 9M revenue order intake Additional works and other adjustments 30 Sept.17 > 143m order intake during the first nine months of 2017, of which 66m during the third quarter > Backlog is equivalent to 15 months revenue from development activities (revenue basis, 12 months rolling period) NEXITY / Investor presentation - January 2018 P.45

46 MAIN ORDERS OF THE PERIOD CERGY 3M CERGY- PONTOISE (95) > Mixed-use project: offices, housing (~1,000 units to develop until 2022) and a Domitys senior serviced residence > Developed area: 11,000 sq.m, 5-floor office building, pre-let by 3M and sold to a private property company > Synergies with Nexity Conseil et Transaction, in charge of the commercialisation > Delivery planned from Q PENTHIÈVRE PARIS (75) > Restructuring of an existing building with the creation of additional areas and redevelopment of the office trays around a patio > Developed area: 9-floor building of 8,000 sq.m for La Mondiale > More than 800 sq.m of protected green areas, creation of terraces > 2 levels of basement with 55 parking spaces > Delivery planned from H PÉGASE BORDEAUX (33) > Sold to Unofi Gestion d Actifs, this building will house the offices of the authorities for the western division of Bordeaux Métropole > Developed area: 6,700 sq.m in a 2-floor building > Operation resulting from the takeover of Thalium Promotion s land portfolio > 257 parking spaces > Delivery planned from Q NEXITY / Investor presentation - January 2018 P.46

47 OFF-PLAN SALE OF THE EVIDENCE COMPLEX* IN SAINT-OUEN (SEINE-SAINT-DENIS) > VEFA off-plan sale of Evidence office complex to Caisse des Dépôts and Amundi Immobilier > Located within Les Docks de Saint-Ouen, mixed development zone in the northern Paris suburb of Saint-Ouen > Developed area: 35,200 sq.m of offices and 330 parking spaces > Designed by DGM & Associés > Certifications: HQE Excellent, BREEAM Internal New Construction, Effinergie +, BiodiverCity TM and WiredScore > Delivery planned from mid-2019 * Order partially recognised in 2017 NEXITY / Investor presentation - January 2018 P.47

48 COMMERCIAL REAL ESTATE TRENDS OUR RESPONSES AS A MARKET OPERATOR TRENDS > Investor appetite > Excess liquidity > Emerging speculative behaviours > Higher prices in certain districts or areas 2017/2018 CHALLENGES > Prudence and selectivity: offering our clients quality products at relevant prices and yields > Very selective approach to the refurbishment market within Paris city limits MEDIUM-TERM RESPONSES > Repositioning to expand operations outside the Paris region, including wood-frame office solutions > Product diversification > Answer our clients needs in terms of flexibility > New urban uses NEXITY / Investor presentation - January 2018 P.48

49 2.3 SERVICES

50 EXISTING HOME SALES NUMBER OF TRANSACTIONS FOR EXISTING HOMES (in thousand of units 12 months rolling) +12.7% Average 2006 September 2017: Q1 H1 9M Sources: CGDD based on data from DGFiP and notarial databases from 2006 to September 2017 NEXITY / Investor presentation - January 2018 P.50

51 SERVICES DIGITAL TRANSFORMATION SUPPLIERS SECURED ZONE SUPPLIER S APP 2017 EPC DIGITAL LOCAT IN EPC MOBILE APP E-INVITATION & MINUTES OF MEETING CHATBOT LOGGY CLIENTS 2018 E-TENANT FILE E-GERANCE SELECTDIAG 2017 MOBILITY EMPLOYEES WIFI AGENCIES VISIO SKYPE E-SIP MANAGER E-SELL CONNECT IN SIGEO and CRM tools redesign Smartphone Tablet Network Computer 2018 To come NEXITY / Investor presentation - January 2018 P.51

52 SERVICES PRODUCT RANGE > No. 2 Property Manager for Individuals in France > No. 1 private operator of student residences > 125 residences operated at the end of 2016 (France and Switzerland); representing almost 15,500 units > 1 st transaction franchise network in France > 793 agencies > 43,250 provisional sale agreements signed in 2016 > Acquisition in 2014 of the No. 5 Property Manager for Individuals > Condominium management, rental management, brokerage and lettings > Near 172,000 units under management at the end of 2016 > Strategic partnership strengthened (45% stake at end 2016) > Takeover option in 2018 > 59 residences operated in 2016 for a total of nearly 7,000 housing units > 2020 target of 200 managed residences > 3 rd transaction franchise network in France > 95% stake > 424 agencies > 15,400 provisional sale agreements signed in 2016 > Service launched at the beginning of 2016 > 1 st fully digital rental management under contract offering NEXITY / Investor presentation - January 2018 P.52

53 REAL ESTATE SERVICES TO INDIVIDUALS PROPERTY MANAGEMENT FOR INDIVIDUALS (PMI) Units under management (in thousands) STUDÉA (student residences in France) M 2017 Condominium management Rental management residences at 30 September % average occupancy rate over the period vs 87.6% in 9M ,4%* * 9M 2017 churn rate on a like-for-like basis: -0.8% (-2.4% in 9M 2016) in property management for individuals (excl. Reims and Toulouse agencies acquisition, and sale of Vichy and Belgium agencies) PROPERTY MANAGEMENT FOR INDIVIDUALS (PMI) Brokerage (number of provisional sales agreements) +3% provisional sales agreements vs 9M ,110 provisional sales agreements in 9M 2017 (5,424 provisional sales agreements in 2016) FRANCHISES > +9% provisional sales agreements signed by franchised agencies > Change in number of agencies: 1,206 1, % 1, % of exclusive agency contracts in 9M 2017 (54% in 2016) M 2017 NEXITY / Investor presentation - January 2018 P.53

54 STRATEGIC PARTNERSHIP WITH ÆGIDE-DOMITYS Nexity holds 45.16% of the capital of Ægide group Equity-accounted investment Takeover option in m revenue in 2016 Growth expected in 2017 French leader in the serviced senior residences (independent-living facilities) with an integrated model: > Developement (Ægide) > Management of the residences (Domitys, 100% subsidiary of Ægide) Key financials at 30 September 2017: > 67 residences managed by Domitys (representing more than 7,800 units) > Occupancy rate of 98% on operational residences*, +1 pt compared to 31 December 2016 > 1,885 reservations, 46% growth compared to 9M 2016, for an expected revenue of 376m * Occupancy rate over than 95% at 1 st January 2017 NEXITY / Investor presentation - January 2018 P.54

55 SERVICES TO COMPANIES REAL ESTATE SERVICES TO COMPANIES (NPM) (in millions of sq.m under management) NEXITY CONTRACTANT GÉNÉRAL 9M 2017 MAIN ORDER % 11.6 > Refurbishment of 15,522 sq.m (IT installation, air conditioning, furniture, flooring, space planning,...) > Season building located in the ZAC Batignolles (joint development zone) > September 2017: delivery and moving in > Installation of SIACI teams and support during the transition period M 2017 > End of a management contract in January 2017 (530,000 sq.m) > New management contracts currently being negotiated and expected to be finalised in the coming quarters NEXITY / Investor presentation - January 2018 P.55

56 SERVICES TRENDS OUR RESPONSES AS A MARKET OPERATOR TRENDS 2017/2018 CHALLENGES MEDIUM-TERM RESPONSES > Robust brokerage market > A need to reinvent the property management business > Digitalisation > Transparency of client relations > Innovation and customisation > Truly comprehensive real estate services provider NEXITY / Investor presentation - January 2018 P.56

57 2.4 LARGE URBAN PROJECTS

58 2017 ENTRY 2017 ENTRY VILLES & PROJETS URBAN REGENERATION Grand Paris Grand Paris ASNIÈRES (92) 85,000 sq.m Grand Paris ÎLE-DE-FRANCE Grand Paris LE BLANC-MESNIL (93) 22,000 sq.m LYON SAINT-OUEN (93) 119,700 sq.m BORDEAUX MONTREUIL ACACIAS (93) 46,200 sq.m (Nexity s share) Grand Paris Grand Paris VERSAILLES-CHANTIERS (78) BRY-SUR-MARNE / VILLIERS-SUR-MARNE (94) 140,000 sq.m BORDEAUX BELVÉDÈRE (33) 70,500 sq.m (Nexity s share) VILLENAVE-D ORNON (33) 8,900 sq.m > ~641,000 sq.m in portfolio at 30 September 2017 ST-PRIEST (69) 110,300 sq.m NEXITY / Investor presentation - January 2018 P.58

59 OTHER PROJECTS LINKED TO THE GRAND PARIS RUEIL-MALMAISON (92) Online building 18,000 sq.m of offices Delivery planned mid-2018 CLICHY (92) Perisight building 9,600 sq.m of offices and an hotel of 156 rooms Delivery planned mid-2018 ROMAINVILLE (93) Villanova 260 units Planned deliveries as of Q MEUDON (92) Pointe de Trivaux 510 units Retail spaces Delivery planned for 2020 MASSY-PALAISEAU (91) Student residence of 255 units Delivery planned for Q CRÉTEIL L ÉCHAT (94) New station of the Grand Paris 420 units Serviced Residence Offices / Delivery planned for 2020 BAGNEUX (92) New station of the Grand Paris NEXITY / Investor presentation - January units Retail spaces P.59 Delivery planned for 2022

60 3. FINANCIALS

61 9M 2017 CONSOLIDATED REVENUE* (in m) +11.4% 2, , Other activities Services Commercial +30% 1,458 1,627 Residential +12% 9M 2016 Residential Commercial Services Other activities 9M 2017 > Revenue up 11% compared to 9M 2016, growing across all Group s divisions > On a like-for-like basis (excl. Edouard Denis and Primosud) revenue up 9% compared to 9M 2016 > Order intake in property development resulting in progressive revenue recognition over a period of about two years, in application of the percentage-of-completion method > Edouard Denis and Primosud: limited contribution to 9M 2017 revenue due to the restatement of the purchase price allocation (elimination of revenue arising from business activity prior to the acquisition) 152m before PPA and 43m after PPA * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.61

62 H CURRENT OPERATING PROFIT* CURRENT OPERATING PROFIT (in m) CURRENT OPERATING MARGIN (in %) +16% % Services Commercial 17.0% Residential 8.1% 8.0% 6.3% 7.6% 7.9% 8.5% -10 H H Other activities H1 H1 H1 H1 H1 H1 H1 H Residential Commercial Services Group > 124m operating profit (up 16% vs H1 2016) after 4.5m total expenses from digital and innovation > Significantly higher than usual commercial real estate margin rate (excellent project management, reversals of provisions ) * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.62

63 RESIDENTIAL OPERATING MARGIN* YEARLY CHANGE CURRENT OPERATING MARGIN (in %) 15.6% Average : 8.9% 9.0% 9.8% 8.2% 7.9% 10.0% 9.6% 9.1% 7.8% 8.6% * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.63

64 INCREASE IN PROFITABILITY* PROPERTY MANAGEMENT FOR INDIVIDUALS (PMI) OPERATING PROFIT MARGIN AND SHARE OF FINANCIAL INCOME (in %) 10.4% 6.1% 7.1% 5.7% 5.9% 5.0% 4.1% 7.6% 8.5% 76% 12% Operating profit margin Share of financial income in current operating profit * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.64

65 H CONSOLIDATED INCOME STATEMENT* in m H H Revenue 1, ,357.5 EBITDA % EBITDA / Revenue 9.5% 8.8% Current operating profit % Current operating profit / revenue 8.5% 7.9% Net financial income (expenses) (14.9) (14.8) Income taxes (39.7) (34.9) Share of profit / (loss) from equity-accounted investments (5.1) (3.4) Non-controlling interests (2.0) (1.1) Net profit attributable to equity holders of the parent company % +16% +16% +18% * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.65

66 BALANCE SHEET* AT 30 JUNE 2017 (en m) Goodwills Equity (incl. non-controlling interests) Other assets 121 WCR Provisions Net debt ASSETS EQUITY AND LIABILITIES * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.66

67 H WORKING CAPITAL REQUIREMENT* (in m) + 42m Other activities (incl. income tax) Commercial Residential Services 2016 Residential Commercial Services Other activities incl. income tax H > Unfavourable client payment schedules impact the Commercial WCR * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.67

68 H CHANGE IN NET CASH/DEBT POSITION* (in m) - 99m Cash flow from operations before WCR, interest and tax Changes in operating WCR Interest and tax payments Dividend CAPEX Other** H * According to IFRS with joint ventures proportionately consolidated ** Including an adjustment on put options granted to non-controlling interests NEXITY / Investor presentation - January 2018 P.68

69 DEBT SCHEDULE AT 30 JUNE 2017* (in m) > 39% of debt with term to maturity > 5 years > Average term to maturity: 4.0 years Corporate borrowings Project-related loans > Cost of financing (debt drawn down): 3.0% at 30 June 2017 (3.2% at 31 December 2016) Drawn at 30/06/ (1) (2) 300 (4) 237 (3) 121 (5) ,086 * According to IFRS with joint ventures proportionately consolidated (1) Including 135m of bonds issued in January 2013 (2) Including 25m of bonds issued in May 2014 (3) Including 146m of bonds issued in May 2014 (4) 270m of convertible bonds (incl. shareholders equity) issued in May 2016 (maturity date 1 January 2023) + 30m of bonds issued un June 2017 (5) 121m of bonds issued in June 2017 NEXITY / Investor presentation - January 2018 P.69

70 10-YEAR CHANGES IN EBITDA, CASH FLOW FROM OPERATING ACTIVITIES AND FREE CASH FLOW* EBITDA (in m) Average : CASH FLOW FROM OPERATING ACTIVITIES after financial and tax expenses (in m) Average : FREE CASH FLOW (in m) Average : * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.70

71 4. OUTLOOK

72 NEXITY BACKLOG* AT 30 SEPTEMBER 2017 In m, excl. VAT, incl. Iselection, PERL, International, Edouard Denis and Primosud 19 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES +11% 4,459 4, Commercial 2, ,315 3, ,355 3,283 3, ,344 2,606 2,702 2,869 2,834 2,806 3,464 4,007 Residential Dec Dec Dec Dec Dec Dec Dec Sept.17 * 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 NEXITY / Investor presentation - January 2018 P.72

73 REVISED REVISED 2017 OUTLOOK CONFIRMED AND PARTIALLY REVISED UP* NEW HOME RESERVATIONS IN FRANCE Growth of Nexity s reservations in a 2017 French market expected slightly up in 2017 (130,000 reservations vs stable at 127,000), Nexity s market share increase of at least 1 pt (i.e. more than 13.5% market share) COMMERCIAL REAL ESTATE ORDER INTAKE At least 350 million CONSOLIDATED REVENUE Growth around 10% CURRENT OPERATING PROFIT At least 300 million DIVIDEND PAID IN 2017** 2.40 per share * Outlook announced on 22 February 2017, partially revised up in October Financial data and indicators based on Nexity s operational reporting, with joint ventures proportionately consolidated ** Compared with a dividend of 2.00 per share paid in 2015, 2.20 per share paid in 2016 NEXITY / Investor presentation - January 2018 P.73

74 MEDIUM-TERM TARGET NEXITY SHARE OFFERS REVISED GROWTH Current operating profit* 220m 266m > 300m > 325m RETURN Dividend per share paid ** * Outlook announced on 22 February 2017, revised up in October Financial data and indicators based on Nexity s operational reporting, with joint ventures proportionately consolidated ** Pending the decision of Nexity s Board of Directors and approval at the Shareholders Meeting NEXITY / Investor presentation - January 2018 P.74

75 NON-FINANCIAL LONG TERM TARGETS 2030 RESIDENTIAL Reduction in tonnes of CO 2 equivalent emissions per home completed (vs 2015) -30% COMMERCIAL Reduction in tonnes of CO 2 equivalent emissions per sq.m of floor space delivered (vs 2015) -21% ADMINISTRATIVE SITES Reduction in tonnes of CO 2 equivalent emissions per employee (vs 2014) -35% NEXITY / Investor presentation - January 2018 P.75

76 DIVIDEND (in per share) * Paid in: ** * Special dividend following the sale of the participation held in Eurosic ** Pending decision of Nexity s Board of Directors and approval at the Shareholders Meeting NEXITY / Investor presentation - January 2018 P.76

77 5. APPENDIX

78 NEXITY ORIGINS Ferret Savinel becomes Férinel (Groupe Arnault) Férinel becomes George V 1979 SARI -SEERI + CIP (2) Creation of CGIS (1), within Générale des Eaux Group 1996 George V contributed to CGIS by Groupe Arnault 2000 Creation of Exit from Vivendi Group via LBO 2004 IPO Transforming deal with Caisse d Epargne (38% of the share capital against a 25% contribution of CFF (3), 32% of Eurosic and 100% of Lamy) Proceeds from the disposal of CFF stake cashed-in Disposal of the Group stake in Eurosic Single brand launch Oralia, PERL and Térénéo acquisitions Edouard Denis, Primosud and Costame acquisitions (1) Compagnie Générale d Immobilier et de Services (2) Compagnie Immobilière Phénix (3) Crédit Foncier de France NEXITY / Investor presentation - January 2018 P.78

79 REAL ESTATE LIFE EVOLUTION Family size Lives with his parents Student Erasmus Young worker Lives with a partner Tenant Has children Get married Home buyer Get divorced Second marriage Extended family Kids leave home Partner death Yesterday Today Life with a 3rd partner Senior residences, life lease Lives with his parents Get married Builds a family Kids leave home Becomes widow NEXITY / Investor presentation - January 2018 P.79

80 ESTIMATE OF THE TOTAL SALES VOLUME FOR NEW HOMES IN FRANCE (in thousands of units) +20% % +14% DEVELOPERS (1) Sales SOCIAL HOUSING (2) Financing authorisations % SINGLE-FAMILY HOUSES (3) Sales (1) Gross sales by developers, i.e. grouped single-family and multi-family housing Source: Commissariat Général au Développement Durable basis) - New figures following the 2017 recast of the Enquête sur la commercialisation des logements neufs (ECLN, a French survey of new home sales) now called ECLN2 published in May 2017 (2) Number of homes financed, excluding ANRU urban regeneration areas Source: Ministère de l Égalité des Territoires et du Logement (3) Contracts for the construction of single-family houses Source : Crédit Foncier February 2017 NEXITY / Investor presentation - January 2018 P.80

81 SENSITIVITY TO MORTGAGE RATES GROWTH FIRST-TIME BUYERS BUY-TO-LET INVESTOR PINEL SCHEME > Herblay (95), 64.7 sq.m., 245,000 incl VAT > 2 people household + 1 child, 3,200 monthly income > Financing: 10% personal contribution + 40% PTZ + 50% loan over 25 years > Mortgage rate of 1.35% excl. insurance MONTHLY INSTALLMENT (in euros) > Montreuil (93), 41.3 sq.m., 215,000 incl VAT > +50 years old, first-time investor, 6,700 monthly income > Financing: 100% loan over 25 years > Mortgage rate of 1.45% excl. insurance > Monthly rent: 806 MONTHLY EXPENDITURE (in euros) , Nov bps bps bps Nov bps bps bps Debt ratio 30% 30% 31% 33% Investment Financing 64% 26% 10% Rent Tax Monthly benefit expenditure Source: Nexity figures given for illustrative and indicative purpose only NEXITY / Investor presentation - January 2018 P.81

82 SERVICED RESIDENCES AND REDUCED-VAT ZONES SERVICED RESIDENCES NEXITY S RESERVATIONS +5% REDUCED-VAT ZONES AT 5.5% (excl. bulk sales) NEXITY S RESERVATIONS +26% 2,283 2,374 3,606 2,481* 1,349 1,440 2,080 1, M M M M 2017 * o/w 1,038 units sold in bulk in 9M 2017 versus 728 units in 9M 2016 BREAKDOWN BY PRODUCT 9M 2017 BREAKDOWN BY PINEL ZONE 9M 2017 Other serviced residences Senior residences 17% 43% 40% Student residences B1 zone B2, C zones 25% 6% Supplyconstrained areas 94% 69% A, Abis zones Source : Nexity NEXITY / Investor presentation - January 2018 P.82

83 NEXITY NEW HOME LAUNCHES NUMBER OF UNITS LAUNCHED IN FRANCE (incl. PERL from 2015, Iselection, Edouard Denis and Primosud) 15,839* 10,152 12,938 13,976 3,293 5, % Q3 3,127 4,299 7,524 Q2 3,257 2,925 Q Projects launches up 29% (198 compared to 153 in 9M 2016) * 14,308 units launched on a like-for-like basis, i.e. +34% vs 9M 2016 (excluding 1,531 units launched by Edouard Denis and Primosud) NEXITY / Investor presentation - January 2018 P.83

84 PROFESSIONAL LANDLORDS BREAKDOWN OF RESERVATIONS TO PROFESSIONAL LANDLORDS (In units, excl. International, incl. Edouard Denis from 2017) +30% 4,780 Social housing 3,499 3,379 3,765 2,949 4,140 2,815 3,005 2,512 3,632 3,904 2,845 Unregulated housing Intermediate housing (SNI, FLI...) non social M M 2017 > Increase in social housing reservations: +13% compared to 9M 2016 (+7% on a like-for-like basis) > Increase in non social reservations: x2.1 versus 9M 2016 (+53% on a like-for-like basis) NEXITY / Investor presentation - January 2018 P.84

85 BREAKDOWN OF SUPPLY FOR SALE AND BUSINESS POTENTIAL FOR NEW HOMES BY PINEL ZONES SUPPLY FOR SALE (excl. international) BUSINESS POTENTIAL (excl. international) 9% 9% 38% areas 53% 91% 31% Supplyconstrained Supplyconstrained areas 91% 60% A, Abis zones B1 zone B2, C zones NEXITY / Investor presentation - January 2018 P.85

86 FINANCIAL KEY FIGURES* REVENUE (in m, excl. VAT) CURRENT OPERATING PROFIT (in m, excl. VAT) AND CURRENT OPERATING MARGIN 2,395 2,683 2,838 2,747 2,603 2,831 2,737 2,632 3,057 3, % % % 7.3% 7.8% 7.1% 7.0% 7.0% % % CASH FLOW FROM OPERATING ACTIVITIES after financial and tax expenses (in m) GROUP SHARE OF NET PROFIT (in m, excl. VAT) * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.86

87 H EBITDA* (in m and as a % of revenue) +16% 119 (8.8%) 19 (7.7%) 23 (17.8%) 139 (9.5%) 24 (9.7%) 31 (21.6%) Services Commercial PMI EBITDA margin: 11.8% in H vs 9.3% in H (8.0%) 92 (8.5%) Residential -1-7 Other activities H H * According to IFRS with joint ventures proportionately consolidated EBITDA is equivalent to current operating profit before depreciation and amotisation, provisions for risks and charges net of reversals, IFRS expenses on free shares and impact of interest costs leaving inventories NEXITY / Investor presentation - January 2018 P.87

88 H CASH FLOW STATEMENT* In m H H Cash flow from operating activities before financial and tax expenses Cash flow from operating activities after financial and tax expenses Change in operating WCR (excluding tax) (20) (9) Change in tax-related working capital, dividends from equity-accounted investments and other (4) 16 Net cash from / (used in) operating investments (15) (10) Free cash flow Net cash from / (used in) financial investments (3) (55) Dividends paid by Nexity SA (133) (121) Net cash from / (used in) financing activities (excliding dividend) 59 (41) Change in cash and cash equivalent (35) (148) * According to IFRS with joint ventures proportionately consolidated NEXITY / Investor presentation - January 2018 P.88

89 NEXITY NEW HOMES COST BASE NEW HOMES COST BASE (average cost of programmes 2016) EVOLUTION OF CONSTRUCTION COST INDEX Financial costs Marketing & advertising External fees & Insurance Fixed internal costs 100% 7% 1% 7% 8% 1, % +1.6% 1,670 Q Q Q Construction costs 52% EVOLUTION OF LAND* MEDIAN PRICES IN THE PARIS REGION (in /sq.m) Infrastructure & networks Land costs 4% 22% % +64% H first-ring second-ring * Bare lands earmarked for construction sources: ORF, INSEE and Nexity NEXITY / Investor presentation - January 2018 P.89

90 EVOLUTION OF HOME PRICES INDEX PRICES EVOLUTION IN FRANCE (apartments, rebased Q1 1996) ANNUAL PRICES EVOLUTION IN FRANCE (apartments) 22% new homes - overall France (prices per sqm) existing homes - overall France (prices per home) existing homes - Paris (prices per home) -8% Q Sources: ECLN for new homes prices per sqm ; INSEE Notaires for existing homes, prices per home NEXITY / Investor presentation - January 2018 P.90

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