NEXITY INVESTOR PRESENTATION NOVEMBER 2015

Transcription

1 NEXITY INVESTOR PRESENTATION NOVEMBER 2015 PAGE 1

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 chapter 4 in the Document de Référence, filed with the AMF under number D on 8 April 2015, 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. PAGE 2

3 SOMMAIRE 1. NEXITY AT A GLANCE 2. FRENCH REAL ESTATE MECHANICS 3. RESIDENTIAL MARKET DATA AND ENVIRONMENT 4. 9M 2015 BUSINESS ACTIVITY 5. H1 AND 9M 2015 FINANCIALS 6. OUTLOOK 7. APPENDIX PAGE 3

4 1. NEXITY AT A GLANCE

5 REAL ESTATE DEVELOPMENT AND SERVICES, FOR THREE TYPES OF CLIENTELE INDIVIDUALS COMPANIES LOCAL AUTHORITIES Development of new homes and subdivisions Property management (Nexity SIP, Oralia), Management of residences (Studéa, Domitys) Franchise networks (Century 21, Guy Hoquet) Commercial real estate development: offices, warehouses, distribution centres and light industrial space, retail premises, hotels, etc. Property management, advisory services for commercial real estate Villes & Projets (development, project management for urban regeneration) Categories of financial communication: Residential real estate Services and networks Commercial real estate Other activities PAGE 5

6 A LEADERSHIP POSITION IN ITS KEY MARKETS NEXITY S MARKET POSITIONING AND MARKET SHARES* LEADER IN RESIDENTIAL REAL ESTATE Market share: 12.1% No. 1 IN COMMERCIAL REAL ESTATE Market share: 9.8% No. 2 IN REAL ESTATE SERVICES TO INDIVIDUALS (Property management) > Condominium management: 8.1% market share > Rental property management: 5.9% market share * Calculated on the basis of market data for 2013, except Residential market share (2014 figures) PAGE 6

7 NEXITY, FRANCE S LEADING PROPERTY DEVELOPER RESERVATION VALUE ( average, in m, incl. VAT) OPERATING MARGIN average, in m, incl. VAT) 2,551 2, ,335 1,252 1,190 1,113 1, Nexity Bouygues Immobilier Cogedim Kaufman et Broad BNP Paribas Real Estate Icade Promotion Vinci immobilier Eiffage Immobilier Sogeprom Promogim Nexity Bouygues Immobilier BNP Paribas Real Estate Kaufman et Broad Icade Promotion Cogedim Eiffage Immobilier Vinci immobilier Sogeprom Source: 2015 ranking of real estated developers: total business volume, revenue in m incl. VAT, operating margin, excluding Promogim (n.a. data), including non-core activities. Except Cogedim: Commercial and Residential operating margin, 2014 accounts PAGE 7

8 A BUSINESS MODEL VERY DIFFERENT FROM THAT OF OTHER EUROPEAN REAL ESTATE OPERATORS Nexity is not: > A property company > Presence across all real estate business lines, apart from the holding of property assets (except in the context of development or co-investment operations) > A speculative developer Nexity is: An asset light balance sheet structure, with marginal exposure to fair value adjustments and no large land bank > Proven effective management of development risks Use of VEFA off-plan contracts: we only build what we have (pre-)sold; no unsold supply High earnings visibility: length of projects (> 2 years), percentage-of-completion method of accounting > A company highly exposed to cyclical effects Recurring profit, announcement of dividends (in cash) over two years > A highly flexible operational model, with low fixed costs and considerable use of subcontracting Fixed costs in Residential real estate < 10% of revenue Limited exposure to the real estate brokerage market > A pure developer > An integrated model, founded on synergies between development and services A major aim: serving all Nexity clients as their real estate needs evolve Highly recurring service businesses with low cyclical fluctuation Service offerings for clients in residential and commercial real estate development (managed residences, rent guarantee, etc.) = added value PAGE 8

9 A BUSINESS MODEL AND A STRATEGY TAILORED TO RESPOND TO MEGA-TRENDS > Emergence of an economy built on access and sharing rather than ownership > Major thrust of Nexity s innovation policy Blue Office: a network of connected offices and services Division of ownership, vehicle sharing, flat sharing, etc. Digital platforms: the new strategic focus > Ageing of the population / Silver economy > Low-cost economy and pressures on the buying power of French households > Nexity: A leader in the development and operation of managed residences for seniors 48 Domitys residences, more than 5,600 units under management at end March 2015 > Leading developer of entry-level products Nexity Access Design Initiatives to optimise construction costs No. 1 social housing partner in France > Connected cities, sustainable cities > Eco-districts, leadership in all-timber construction, energy-positive buildings > Grand Paris > Nexity is a leader ( 20% market share in the Paris region), as a real estate developer but also as a project manager/developer for urban regeneration, a partner for local authorities and city planners PAGE 9

10 2014 REVENUE AND CURRENT OPERATING PROFIT REVENUE AND SHARE OF REVENUE (in m) CURRENT OPERATING PROFIT AND MARGIN (in m) Other activities 47 (2%) 484 (18%) Services and Networks % 1,833 (70%) 2, (10%) Commercial real estate Residential real estate % % % Other activities: -31 PAGE 10

11 RESILIENT FINANCIAL PERFORMANCE CONSOLIDATED REVENUE* 2,747 2,603 2,831 2,737 2,632 CONSOLIDATED CURRENT OPERATING PROFIT* CASH FLOW* (Cash flow from operating activities after financial and tax expenses**) DIVIDEND Paid in: 2011 (1) e (2) (1) Excluding the exceptional dividend paid in September 2011 ( 4 per share) (2) Pending decision of Nexity s Board of Directors and approval by the General Shareholders Meeting *According to IFRS but with joint ventures proportionately consolidated ** Equal to the tax expense under IFRS PAGE 11

12 CREATING VALUE FOR SHAREHOLDERS NEXITY S TOTAL SHAREHOLDER RETURN (share price appreciation +dividends reinvested) Dividend performance Share performance > Since the IPO (21 October 2004) > Last 5 years x5 x2 281% 86% 27% 34% 125% 62% 34% 96% 49% 24% 35% 36% Nexity SBF 120 EPRA Nexity SBF 120 EPRA > Last 3 years > Last 12 months x2 +52% 8% 34% 65% 15% 46% 18% 46% 44% 4% 20% 4% 28% Nexity SBF 120 EPRA Nexity SBF 120 EPRA Source: Bloomberg, Performance calculated at 26 October 2015 EPRA: European Public Real Estate Index PAGE 12

13 OWNERSHIP STRUCTURE 30 September ,189,017 shares (no treasury shares) Crédit Mutuel Arkéa 5.0% A.Dinin, New Port* and other Nexity managers in the concert group 12.3% 17.3% held by AD, CMA, and other concert group members 3.0% 5.2% FCPE and other employees 12.8% Predica Caisses d Épargne (groupe BPCE) Free float 61.7% *New Port: 6.9% PAGE 13

14 2. FRENCH REAL ESTATE MECHANICS

15 FINANCIAL MODEL FOR RESIDENTIAL DEVELOPMENT RESIDENTIAL Project phases Purchase option on land Pre-sales phase: 6 12 months Purchase option exercise Start of works Sales phase, transfers of ownership, construction: months Delivery 100% 100% 60% 40% M 0 M 6-12 M Payment schedule 5% upon reservation 30% at completion of foundations 35% 25% 5% at completion at completion at key of construction of all works handover except for water connections 1 st transfers of ownership for reservations made during the pre-sales phase PAGE 15

16 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 Purchase of land Purchase of land 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 PAGE 16

17 COMMERCIAL OFFER OF NEW HOMES IN THE MARKET RESIDENTIAL AVAILABLE SUPPLY IN FRANCE AT 30 JUNE 2015 (number of apartments, in units) -7% 94,657 88,293 7% 7% Completed 37% 35% Under construction 56% 58% In project phase H Source: Commissariat Général au Développement Durable PAGE 17

18 RESIDENTIAL MARKET SALES & NEW SUPPLY RESIDENTIAL SALES AND NEW SUPPLY AT 30 JUNE 2015 (number of apartments, in units) 40,000 35,000 30,000 25,000 Q sales +23% yoy 20,000 15,000 Q new supply -3% yoy 10,000 Q Sales New supply Q Source: Commissariat Général au Développement Durable PAGE 18

19 3. RESIDENTIAL MARKET DATA AND ENVIRONNEMENT

20 RESIDENTIAL THE FRENCH HOUSING MARKET AND ITS CONTEXT + - Structural data > Encouraging demographic trends (+0.5% population growth, +1% number of households) > Construction efforts have been insufficient for two decades > High aspiration for access to home ownership 58% of owners Real estate is the preferred investment for the French FRENCH HOUSING MARKET > Restrictive urban planning requirements Shortage of buildable land in areas characterised by tight supply > New homes are expensive 20% VAT Construction regulations > High degree of tenant protection Trends > Favourable interest rates (mortgages) > Government stimulus measures for the housing sector (M. Valls, 2014) A structural and economic lack of housing starts > Buying power of households in decline > Low consumer morale Average : 359,000 Government target: 500, Favourable fundamentals sustained by an imbalance between supply and demand, but held back by problems restricting supply and housing affordability Source: Commissariat Général au Développement Durable, data used until end of February 2015 PAGE 20

21 DATA FOR THE FRENCH RESIDENTIAL REAL ESTATE MARKET RESIDENTIAL NUMBER OF HOUSEHOLDS Metropolitan France (1) (in millions) CAGR +0.9% 30 +6m EXTENT OF OWNERSHIP (as % of the population) 83% 71% 65% 58% e 2020e 2030e 2040e Between now and million more inhabitants and 6 million more households in France - a potential and sustainable demand for new homes in the range of 350,000 per year over the next 25 years (2), compared to 267k actual new dwellings in 2014 (3) Sources: INSEE 2010, TEF, 2010 edition (Eurostat data) and Q HOUSEHOLD DEBT (as % of net disposable income) 156% 142% 119% 104% Source: OECD statistics, 2012 data (1) Source: INSEE 2010 and 2012 (2) Excluding the impact of internal migration, which is not quantified (3) At end November, on a 12 month period - source: Commissariat Général au Développement Durable, Chiffres & statistiques n 593 PAGE 21

22 FRENCH RESIDENTIAL MARKET: BUILDING PERMITS & HOUSING STARTS RESIDENTIAL RESIDENTIAL BUILDING PERMITS (in thousands of units, 12 months rolling) HOUSING STARTS (in thousands of units, 12 months rolling) 430, ,200-4% 368, , ,000-1% 349,700 Sept.-13 Sept.-14 Sept.-15 Sept.-13 Sept.-14 Sept.-15 Source: Commissariat Général au Développement Durable PAGE 22

23 ESTIMATE OF THE TOTAL SALES VOLUME FOR NEW HOMES IN FRANCE RESIDENTIAL DEVELOPERS (SALES), SOCIAL HOUSING (FINANCING AUTHORISATIONS), SINGLE FAMILY HOUSES (SALES) (in thousands of units) % 324-3% % -3% Developers (1) 117-9% 106 Social housing (2) 108-4% 104 Single family houses (3) (1) Gross sales by developers, i.e., individual and collective housing taken together Source: Commissariat Général au Développement Durable (2) Number of homes financed, outside ANRU urban regeneration areas Source: Ministère de l Égalité des Territoires et du Logement (3) Contracts for the construction of single family houses Source: Union des Maisons Françaises, AFP news wire dated 12/02/2015 for 2014 PAGE 23

24 MARKET DRIVERS RESIDENTIAL MORTGAGE RATES (all markets, excl. insurance, last month of the quarter, average) 5.07% MONTHLY CONFIDENCE CONSUMER SURVEY SYNTHETIC INDEX (WD-SA) % 3.68% 2.59% 2.19% average: % 0.99% 0.48% Q Q Q Q Q mortgage rates French governement 10-year bond (OAT) Sources: Observatoire Crédit Logement and Bloomberg Source: INSEE PAGE 24

25 EVOLUTION OF HOME PRICES RESIDENTIAL INDEX PRICES EVOLUTION IN FRANCE (apartments, rebased Q1 1996) ANNUAL PRICES EVOLUTION IN FRANCE (apartments) 22% 209 1% new homes - overall France (prices per sqm) existing homes - overall France (prices per home) existing homes - Paris (prices per home) -8% Sources: ECLN for new homes, prices per sqm ; INSEE Notaires for existing homes, prices per home -3% Q PAGE 25

26 MAJOR RECENT AND UPCOMING LEGAL AND REGULATORY CHANGES 01/01/ /10/ /01/2015 Outlook for 2016 SOCIAL HOUSING VAT changed from 7% to 5.5% Substantial impact in 2014 BUY-TO-LET INVESTMENT Switch from Duflot to Pinel scheme - More flexible ( years) - Expanded to one s parents & children SUBDIVISIONS Potential extension of the exceptional tax allowance on sales of undeveloped lands? INTERMEDIATE HOUSING Status created for institutional investors - 10% VAT rate (instead of 20%) - 20-year property tax exemption Gradual build-up Priority urban planning districts (quartiers prioritaires de la politique de la ville) (+ 300-metre perimeter) Nexity-SNI agreement at end-2014: 800 to 1,100 homes/year, REVISION OF THE ZONING PLAN Improved: - profitability (investors) - household financial capacity (owner-occupiers with PTZ interest-free loans) More attractive CHANGES TO THE PTZ+ INTEREST-FREE LOAN - Extended grace period - Reduction of the portion financed by PTZ interest-free loans in A and A+ areas Outside Paris region: expanded customer base / But lower affordability for Paris region home buyers 1,300 QPVs* CREATED VAT reduced to 5.5% for first-time homebuyers MACRON ACT Several simplification measures GOVERNMENT STIMULUS MEASURES FOR HOMEBUYERS - APL personal housing subsidies for homebuyers maintained - Measures announced (but not covered in detail) on 19/10/2015 by President Hollande PAGE 26

27 ACCOUNCEMENT OF A NEW PTZ* TO SUPPORT FIRST-TIME BUYERS RESIDENTIAL > New measures announced** to support home ownership through a new generation PTZ To be implemented for 2 years from 1 st January 2016 > Main changes: Raised Income ceilings Increased LTV ( quotité ) to 40%, from 18% to 26% as of today Extended grace & repayment periods (minimum deferment period of 5 years, max 15 years) Increased budgetary envelope to 1.9bn POTENTIAL NUMBER OF GRANTED PTZ (estimates) (in thousand of units, for the total market (single family houses and developers)) +85% SHARE OF NEXITY SALES TO FIRST-TIME BUYERS FINANCED WITH PTZ (as of 30 September 2015) 36% no PTZ with PTZ 64% 2015e 2016e Prêt à Taux 0, ie 0% interest rate loan ** Announced by François Hollande on the 29 th October 2015 and detailed by Sylvia Pinel, Housing Minister, on the 9 th November 2015 PAGE 27

28 NEW HOME MARKET RECOVERY RESIDENTIAL Q Q DEVELOPERS NEW HOME RESERVATIONS (in units) +22% 27,500 25,000 +7% +17% 26,533 22,500 21,784 20,000 17,500 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Sources: Commissariat Général au Développement Durable PAGE 28

29 NEW HOME RESERVATION MARKET IN FRANCE (DEVELOPERS) RESIDENTIAL DEVELOPERS NEW HOME RESERVATIONS (in units) 127, ,400 Average : 105,200 79, , ,000 89,000 89,300 ~86, , e Sources: Commissariat Général au Développement Durable - Nexity estimates for 2015 PAGE 29

30 RESIDENTIAL NEXITY RESIDENTIAL: A LEADER IN ITS MARKET NEXITY MARKET SHARES AT END DECEMBER 2014 GROWTH IN NEXITY S MARKET SHARE 10.2% 10.3% 10.9% 11.5% 11.3% 8.4% 8.6% 9.2% 7.4% 12.1% 15.7% 19.3% 13.9% % 7.5% MARKET SHARES OF THE LEADING PLAYERS IN THE FRENCH NEW HOME MARKET IN % 12.1% Nexity 12.9% Bouygues Immobilier (France) Market shares calculated by Nexity New home reservation market source: Commissariat Général au Développement Durable Others 58.5% PAGE % 6.8% Kaufman & Broad Cogedim (Altarea, 5.3%) Icade (4.5%)

31 4. 9M 2015 BUSINESS ACTIVITY

32 9M 2015 NEXITY RESERVATIONS RESIDENTIAL VOLUME AT END SEPTEMBER (in units) +10.8% VALUE AT END SEPTEMBER (in m, incl. VAT) +18.1% 9,870 8,718 7,957 8,066 8, % 1,741 1,477 1,441 1,356 1, % 8,010 7,139 6,540 6,712 7,504* 1,562 1,285 1,311 1,247 1,483* subdivisions international new homes > Higher growth in value than in volume of new home reservations in France due to a double customer mix effect: > Greater proportion of sales to individuals and decrease in bulk sales (sales to professional landlords) > Among bulk sales, increase in sales to institutional investors and decrease in sales to social housing operators (ASP of bulk sales: +13%) > On a like-for-like basis (excluding H for PERL), new home reservations in France grew 7% by volume and 12% by value * o/w PERL: 320 new homes and 90m incl. VAT in H (change of scope of consolidation impact) PAGE 32

33 QUARTERLY CHANGES OF NEXITY NEW HOME RESERVATIONS RESIDENTIAL VOLUME (Qn2015/Qn2014 changes of reservations in units) VALUE (Qn2015/Qn2014 changes of reservations in m, incl. VAT) +20% +25% +13% +17% +8% % +9% +8% +13% +13% +13% +2% Q1 Q2 Q3 Q1 Q2 Q3 constant scope of consolidation* reported * Exclusion of PERL in Q1 and Q PAGE 33

34 9M 2015 NEXITY NEW HOME RESERVATIONS BY AREA RESIDENTIAL VOLUME (in units) 6,540 43% 6,712 44% +12% 7,504 38% Paris region VALUE (in m, incl. VAT) 1,311 53% 1,247 51% +19% -5% +7% 1, % 57% 56% +25% 63% Rest of France 47% 49% +32% 54% 9M M M M M M 2015 PAGE 34

35 9M 2015 NEXITY NEW HOME COMMERCIAL LAUNCHES RESIDENTIAL (France, excluding Iselection and PERL, in units) 10,989 9,344 Q4 7,521 2, % Q3 2,090 2,975 4,354 Q2 1,154 1,155 Q > Dynamic commercial launches policy: 12% increase of the number of operations launched (92) at 30 September 2015 PAGE 35

36 9M 2015 NEXITY KEY CLIENT SEGMENTS PERFORMANCE RESIDENTIAL NEW HOME RESERVATIONS BREAKDOWN BY CUSTOMER TYPE (excl. International, in units) 6,540 32% 6,712 36% +12% 7,504 28% Professional landlords 9M 2015 /9M % 35% 34% 47% Individual investors +52%* 8% 7% 6% Other home buyers -1% 26% 23% 19% First-time buyers -9% 9M M M 2015 *+38% at a constant scope of consolidation, i.e. excluding PERL H reservations PAGE 36

37 QUARTERLY CHANGES OF KEY CLIENT SEGMENTS PERFORMANCE RESIDENTIAL NEW HOME RESERVATIONS BREAKDOWN BY CUSTOMER TYPE (excl. International, in units) 2,187 2,722 2,949 26% 2,175 2,368 1,815 26% 44% 30% 34% Professional landlords 30% 35% 47% 28% 49% 42% 44% Individual investors* 8% 27% 6% 22% 6% 22% 7% 19% 7% 22% 5% 17% Other home buyers First-time buyers Q Q Q * At a constant scope of consolidation: +43% in Q1, +63% in Q2 and +13% in Q3 PAGE 37

38 PROFESSIONAL LANDLORDS RESIDENTIAL BREAKDOWN OF RESERVATIONS BY PROFESSIONAL LANDLORDS (in units, excluding International) 2,102 2,384-11% 2,130 1, , , % social housing unregulated housing intermediate housing excluding SNI SNI (intermediate housing) Non-social 9M M M 2015 > Decrease in sales to social housing operators (-24%) over 9M 2015, improving in Q3 2015/ Q (+25%) compared to Q2 2015/ Q (-36%, impacted by an especially high number of reservations on hold pending building permits) > Substantial increase in non-social institutional investors sales (+45% at end-september) > Nexity signed a 2 nd preliminary reservation agreement in Q3 for 333 homes, under a framework agreement signed with SNI in December 2014 for 800-1,100 homes a year (in addition to the 1 st agreement (February 2015) for 569 homes) PAGE 38

39 PRICE TRENDS RESIDENTIAL NEW HOMES (NEXITY CLIENTS) (in thousand of euros, excl. Iselection, PERL, International and bulk sales) Paris Region Paris Region excl. Paris Regions M M M M 2015 Var. Average home price incl. VAT per sq.m. 3,812 3, % Average surface area per home (sq.m.) % Average price incl. VAT per home ( k) % PAGE 39

40 NEXITY NEW HOME COMMERCIAL OFFER RESIDENTIAL COMMERCIAL OFFER (in units, excl. Iselection, PERL and International) 6,988 2% 52% 3,663 3,542 4,202 4,293 5,058 28% 5,313 29% 5,382 33% 85 Completed new homes New homes under construction 46% 71% 69% 66% New homes in project phase M 2015 PAGE 40

41 NEXITY BUSINESS POTENTIAL RESIDENTIAL BUSINESS POTENTIAL FOR NEW HOMES* (in units, excl. Iselection, PERL and International) +19% 28,685** 22,824 28% 19,057 21,285 23,143 23,941 23,100 24,109 35% +44% 43% Paris region 72% 65% 57% Rest of France +5% M M 2015 * 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 ** stable in comparison with 30 June 2015 (28,693 units) PAGE 41

42 RESIDENTIAL NEXITY WINS THE FIRST TWO CALLS FOR PROPOSALS ISSUED BY SOCIÉTÉ DU GRAND PARIS (SGP) CRÉTEIL L ECHAT (Val-de-Marne) BAGNEUX (Hauts-de-Seine) Future development project for real estate related to the Créteil l Echat train station (line 15 South) comprising: 22,000 sq.m of housing (420 units, for homebuyers, mixed student housing and tourism/business accommodations), office space and public parking Provisional schedule of operations: Train station to be opened in 2022 First phase of operations located outside the train station area to begin in 2018 Future development project for real estate related to the future Bagneux train station (interchange between lines 4 and 15), jointly developed with Sodearif, and comprising: 33,000 sq.m of housing (430 units, 20% of which will be social housing), retail premises and parking Provisional schedule of operations Train station to start operating in 2020 PAGE 42

43 LE GRAND PARIS (THE GREATER PARIS PROJECT) > Grand Paris is a project aimed at: Transforming the Paris area into a great world metropolis of the 21st century Improving residents quality of life, correcting geographical inequalities and building a sustainable city > All this begins with the Grand Paris Express, a city-wide public transport network Planned investment: ~ 30 billion Beginning of works: 2015 Completion: km of new lines (~125 Milles) 68 new train stations PAGE 43

44 COMMERCIAL MARKETS COMMERCIAL TAKE-UP IN PARIS REGION (in millions of sq.m) Q4 Q % Q2 0.5 Q COMMERCIAL INVESTMENT MARKET IN FRANCE (in billions of euros) Q4 Q3 Q % o/w 10.2bn invested on the offices market, ie +3% vs 9M 2014 Q Sources: CBRE, bureaux Ile-de-France and Investissement France, Q PAGE 44

45 9M 2015 NEW ORDER INTAKE AND BACKLOG COMMERCIAL ORDER INTAKE (in M) 544 Target exceeded BACKLOG (in M) +2% > M target 31 Dec M 2015 revenue 9M 2015 order intake additional works & other adjustments 30 Sept PAGE 45

46 THE SMART SIDE BUSINESS PARK IN SAINT-OUEN (Seine-Saint-Denis) AND CLICHY (Hauts-de-Seine) COMMERCIAL VEFA off-plan sale of Smart Side business park to EDF Invest in September 2015 Developed area: around 40,000 sq.m (useable) of offices and services around an extensive landscaped garden and 575 parking spaces Demolition/reconstruction and major renovation project Certified Excellent by the HQE Sustainable Building Passport and BREEAM 2014 Delivery planned for Q PAGE 46

47 COMMERCIAL ECO CAMPUS, CHÂTILLON (Hauts-de-Seine) THE LARGEST PRIVATE PROJECT OF THE GRAND PARIS* > 72,000 sq.m office complex of 5 office buildings with a maximum capacity of 4,900, together with a building offering services for users (restaurants, cafeteria, conference room, show room, etc.) > This complex is a co-development with Interconstruction for Orange Group July 2013 VEFA contract signed with Crédit Agricole Assurances Before end 2015 Scheduled for delivery in H as initially planned, despite some changes in the specification * The Greater Paris project PAGE 47

48 SERVICES: UNITS UNDER MANAGEMENT SERVICES PROPERTY MANAGEMENT FOR INDIVIDUALS (PMI) (in thousands of units) % 933 REAL ESTATE SERVICES TO COMPANIES (Nexity Property Management) (in millions of sq.m under mgmt) % 12.5 Condominium management Rental management M M 2015 > On a like-for-like basis (excluding the sale of Nexity s business in Switzerland and Caen and the acquisition of independent property management firms in Paris, Dijon and Bordeaux, as well as the Pierre Bérard firm in the Paris region), the attrition rate amounted to 2.2% (2.8% in 9M 2014) PAGE 48

49 URBAN REGENERATION: MAIN OPERATIONS OTHER ACTIVITIES ASNIÈRES 93,600 sq.m Île-de-France MONTREUIL 63,350 sq.m ERMONT EAUBONNE 9,700 sq.m Lyon ST-PRIEST 140,300 sq.m Marseille ST-OUEN 152,300 sq.m > ~535,360 sq.m in the portfolio at 30 September 2015 MARSEILLE DOCKS LIBRES 30,000 sq.m PAGE 49

50 NEXITY BACKLOG* AT 30 SEPTEMBER 2015 (in M, excl. VAT and incl. Iselection, PERL and International) 16 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES 2, , ,315 3, ,355 3,283 3, Commercial real estate 2,044 2,344 2,606 2,702 2,869 2,834 2,836 Residential real estate Dec Dec Dec Dec Dec Dec Sept * Corresponds to the Group s order backlog in terms of forecast revenue and number of months of development activity PAGE 50

51 5. H1 AND 9M 2015 FINANCIALS

52 9M 2015 CONSOLIDATED REVENUE* (in M) +18.5% 46 1, , Other activities 11 Services & Distribution Networks +5.5% Commercial +87.1% 163 1,160 1,352 Residential +16.6% PERL change of scope Oralia change of scope 9M 2014 Residential Commercial Services & Distribution networks Other activities 9M 2015 > Revenue up 16% excluding PERL and Oralia changes in scope * According to IFRS but with joint ventures proportionately consolidated PAGE 52

53 9M 2015 SERVICES & DISTRIBUTION NETWORKS REVENUE* (in M) +5.5% % Distribution networks (franchises) 14% NPM+ NCT (formerly Keops) Services to corporates 18% Studéa 13% Oralia 49% Property management to individuals Services to individuals 9M 2014 perimeter impact of Oralia s acquisition (01/04/2014) Services to individuals Services to corporates Franchises 9M 2015 * According to IFRS but with joint ventures proportionately consolidated ** property management to individuals PAGE 53

54 H CURRENT OPERATING PROFIT* OPERATING PROFIT MARGIN (in %) CURRENT OPERATING PROFIT (in m) 11.0% (12.6%)** Services & Networks 7.8% (8.0%)** 5.0% (4.8%)** 6.9% (6.6%)** 22 Commercial 69 Residential Residential Commercial Services & Networks Group -11 Other activities * According to IFRS but with joint ventures proportionately consolidated ** Operating profit margin H PAGE 54

55 EVOLUTION OF RESIDENTIAL CURRENT OPERATING PROFIT* CURRENT OPERATING PROFIT (in %) % Excluding International (losses in Italy) % 13.1% 8.1% 8.5% 8.2% 7.2% 6.3% 10.5% 9.8% 9.9% 9.5% 9.3% 8.0% 10.1% 8.0% 7.7% 7.8% 0 H H H H H H H H H H H H H H H H H * According to IFRS but with joint ventures proportionately consolidated PAGE 55

56 H SERVICES & DISTRIBUTION NETWORKS REVENUE AND CURRENT OPERATING PROFIT SPLIT* REVENUE (in M) 5.4% CURRENT OPERATING PROFIT AND MARGIN (in M) % % % 4,1% 5.1% H H H H Distribution & Networks excl. PMI PMI * According to IFRS but with joint ventures proportionately consolidated PAGE 56

57 H CONSOLIDATED INCOME STATEMENT* (in M) H H Var. Revenue 1, , % Current operating profit % Margin 6.9% 6.6% +0.3 pt Net financial income (expense) (10.1) (6.3) +60.4% Taxes (32.1) (30.3) +6.0% Share of profit (loss) from equity-accounted associates and non-controlling interests (1.3) (1.6) -15.9% Group share of net profit % * According to IFRS but with joint ventures proportionately consolidated PAGE 57

58 BALANCE SHEET* AT 30 JUNE 2015 (in M) Goodwill 1,122 1,528 Total shareholders equity (incl. non-controlling interests) Other assets 131 WCR Provisions Net debt ASSETS LIABILITIES * According to IFRS but with joint ventures proportionately consolidated PAGE 58

59 H WORKING CAPITAL REQUIREMENT* (in M) + 24 M Other activities Commercial Residential** Commercial: Dec Residential Commercial Services & Networks Others June 2015 Services & Distribution networks Residential: stable WCR as business activity showed a recovery > Off-plan sales pre-commercialisation rate: 69% > Accelaration of sales rythm *According to IFRS but with joint ventures proportionately consolidated ** o/w 64 M in 2014 for PERL and 75 M at the end of June 2015 > Commercial: less favourable interim payment schedules and absence of major new orders during the half-year period PAGE 59

60 H CHANGE IN NET CASH/DEBT POSITION* (in M) 31 Dec June M cash flow from operations before WCR, interest and tax changes in operating WCR interest and tax payments dividend CAPEX External growth and Ciloger disposal * According to IFRS but with joint ventures proportionately consolidated PAGE 60

61 H CASH FLOW STATEMENT* (in M) Cash flow from operating activities before financial and tax expenses H H Change in operating WCR (23) (98) Income taxes, financial expense and dividends of equity-accounted investments paid (37) (59) Net cash from/ (used in) operating investments (9) (17) Free cash flow 14 (99) Dividends received from equity-accounted companies 6 (196) Net cash from (used in) financial investing activities Dividends paid (108) (108) Change in cash and cash equivalents (77) (76) *According to IFRS but with joint ventures proportionately consolidated PAGE 61

62 6. OUTLOOK

63 CONFIRMATION OF OUTLOOK FOR 2015* (AS REVISED UPWARD IN JULY 2015) RESIDENTIAL > Nexity market share (12%) to be maintained in a French new homes market estimated to grow at 94, ,000 units (versus 90,000-95,000 estimated in February 2015) COMMERCIAL > Order intake of at least 200 million (target exceeded) FINANCIALS > Consolidated revenue target for 2015: at least 2.9 billion > Current operating profit target for 2015: at least 200 million, after taking into account 20 million in expenses related to investments in digital transformation and innovation DIVIDEND > Confirmation of a dividend payment of 2 per share in 2016** * According to IFRS but with joint ventures proportionately consolidated ** Pending decision by Nexity s Board of Directors and approval by Shareholders Meeting PAGE 63

64 DIVIDEND DIVIDEND PER SHARE (in per share) 4,0 1,6 1,9 2,0 1,5 1,6 2,0 2,0 2,0 2,0 2,0 2,0 1,0 Paid in: * (Mai) (Sept) *pending decision of Nexity s Board of Directors and approval of the General Shareholder Meeting PAGE 64

65 7. APPENDIX

66 NEXITY ORIGINS Ferret Savinel becomes Férinel (Groupe Arnault) Férinel becomes George V SARI -SEERI + CIP (2) 1995 Creation of CGIS (1), within Générale des Eaux Group George V contributed to CGIS by Groupe Arnault Creation of Exit from Vivendi Group via LBO (1) Compagnie Générale d Immobilier et de Services (2) Compagnie Immobilière Phénix PAGE 66

67 RECENT KEY MILESTONES IPO Transforming deal with Caisse d Epargne (38% of the share capital against a 25% contribution of CFF (1), 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 and PERL acquisitions PAGE 67 (1) Crédit Foncier de France PAGE 67

68 HOUSING: AN OVERESTIMATED PERCEPTION OF DEPENDENCY ON PUBLIC EXPENDITURE AN IMPORTANT SOURCE OF TAX REVENUE (in bn) PUBLIC EXPENDITURE LOWER THAN CONTRIBUTIONS WEIGHING ON THE SECTOR AND ONLY MARGINALLY BENEFITING THE DEVELOPMENT MARKET including 4bn in public expenditure to support the market for new homes Other tax revenue Property tax and other taxes VAT Other expenditure Budget expenditure Tax benefits Source: Commission Nationale des Comptes du Logement, 2014 PAGE 68

69 FRENCH RESIDENTIAL REAL ESTATE MARKET FROM A EUROPEAN PERSPECTIVE The largest market in Europe in terms of size, and by far A legal environment allowing for robust management of development risks HOUSING STARTS IN 2013 (in units) 332,000 > VEFA (Vente en l État Futur d Achèvement) off-plan scheme: transfer of ownership as soon as the notarial instrument is signed 213, , ,500 > Secure scheme for the developer (buyer cannot withdraw from purchase) and for the buyer (financial completion guarantee) 31,000 > General rule: no land bank (portfolio of options on land) France Germany Italy* United Kingdom Spain > Acquisition of ready-to-build land, with building permits free of all claims by third parties * 2011: latest data available Sources: IEIF, Sitadel PAGE 69

70 STIMULUS MEASURES FOR INDIVIDUAL INVESTORS RESIDENTIAL > 195 municipalities upgraded into the zones characterised by the tightest supply (A and A bis) > Relaxation of the Duflot buy-to-let investment scheme Pinel > Authorisation again granted to rent to an ascendant or descendant > Identical impact for institutional investors Montpellier Zone B1 Duflot Max. rent 10/sq.m Montpellier Zone B1 A Pinel Max. rent 12.42/sq.m Buy-to-let investment test case Rent Gross rental income 3.2% 3.9% Monthly expenditure Capital gains (sale price interest expense) Of which, covered by tax benefit 52,990 69,531 45,000 52,500 IRR (before asset revaluation) 9.8% 13.7% IRR (after asset revaluation + 0.5%/year) 11.7% 15.5% > Montpellier, 65 sq.m + parking ( 3,850/sq.m) 250,000 > Financing: 10% personal contribution + 90% loans over 20 years > Mortgage rate of 2.90% incl. insurance > Management fees: 10.90% > Taxation bracket: 30% > Annual rent increase: 0.50% IRR: assuming a rental term of 12 years, allowing for a tax benefit of 21% PAGE 70

71 NEW HOMES: COST BASE RESIDENTIAL NEW HOMES COST BASE BREAKDOWN (average cost of programmes ) EVOLUTION OF CONSTRUCTION COST INDEX Financial costs Marketing and advertising Fees and insurance 100% 8% 1% 15% +19% -2% 1,614 Construction costs 52% 1,362 Q Q Q Networks 4% Land costs 20% 2014 Sources: INSEE, Nexity PAGE 71

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