NEXITY INVESTOR PRESENTATION H RESULTS. NEXITY / H results

Transcription

1 NEXITY INVESTOR PRESENTATION H RESULTS PAGE 1

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

3 1. NEXITY AT A GLANCE

4 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 4

5 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 5

6 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 6

7 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 7

8 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 8

9 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 9

10 A STRATEGY FOCUSED ON INNOVATION NEW SALES AND MARKETING APPROACHES > By separating home ownership from access and use with PERL > By offering buyers the possibility to envision themselves within their future homes with the home design simulator > By introducing mobility solutions, like vehicle sharing with Autopartage NEW SERVICES AND TOOLS TO SIMPLIFY EVERYDAY LIFE > By reinventing teleworking with Nexity Blue Office > By creating the first social network for house and flat sharing with Weroom > And tomorrow, by creating smart homes with «Easy Home» MULTIPLYING THE SOURCES OF INNOVATION > Partnerships with specialised investment funds and innovating companies such as Zen Park (shared parking spots) > By centering the Group s new enterprise project Nexity Connects Everyone on the digital transformations reshaping society PAGE 10

11 OWNERSHIP STRUCTURE 30 June ,189,017 shares (no treasury shares) Crédit Mutuel Arkéa 5.0% A.Dinin, New Port* and other Nexity managers members of the concert group 12.5% 17.5% held by AD, CMA, and other concert group members 3.1% 5.2% FCPE and other employees Predica Free float 54.5% 19.7% Caisses d Épargne (groupe BPCE) New Port: 6.9% PAGE 11

12 2. FRENCH REAL ESTATE MECHANICS

13 FINANCIAL MODEL FOR RESIDENTIAL DEVELOPMENT RESIDENTIAL PROJECT PHASES Purchase option on land Exercise of purchase option Delivery Reservation rate Payment schedule 100% 60% Reservation rate Pre-sales phase: 6 12 months 5% upon reservation Start of works Transfer of ownership for reservations made during the pre-sales phase Sales phase, transfer of ownership, construction: months 30% at 35% at 25% at completion completion of completion of foundations construction except for of all works water connections 100% 50% 5% at handover of keys Revenue recognition Revenue recognition Revenue: percentage-of-completion method (1) For reservations made during the pre-sales phase PAGE 13

14 RESIDENTIAL 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 14

15 AVAILABLE SUPPLY OF NEW HOMES IN THE MARKET RESIDENTIAL SUPPLY IN FRANCE AT 31 MARCH 2015 (number of apartments, in units) -4% 94,184 90,126 7% 7% Completed 37% 37% Under construction 56% 56% In project phase Q Source: Commissariat Général au Développement Durable PAGE 15

16 RESIDENTIAL MARKET SALES & NEW SUPPLY RESIDENTIAL SALES AND NEW SUPPLY AT 31 MARCH 2015 (number of apartments, in units) 40,000 35,000 30,000 25,000 Q sales +14% yoy 20,000 15,000 Q new supply -6% yoy 10,000 Q Sales New supply Q Source: Commissariat Général au Développement Durable PAGE 16

17 3. RESIDENTIAL MARKET DATA AND ENVIRONNEMENT

18 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 18

19 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 19

20 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) 383,400-5% 365, ,700-9% 341,200 May 2013 May 2014 May 2015 May 2013 May 2014 May 2015 Source: Commissariat Général au Développement Durable PAGE 20

21 HOUSING STARTS: NEW CALCULATION METHODOLOGY RESIDENTIAL Change as of 1 January 2015 in measurement indicators for housing starts since January old data: date when taken into account new data: estimated actual date cumulative 5,637 k 5,984 k (+6%) annual average 376 k 399 k DEVELOPERS, SOCIAL HOUSING, SINGLE FAMILY HOUSES (in thousands of units, 12 month rolling basis) : government target Source: Sit@del decrease relative to old data increase relative to old data PAGE 21

22 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% % -4% 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 22

23 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% 2.85% 1.70% 1.99% % average: mortgage rates Q % Q Q Q Q Q French governement 10-year bond (OAT) Sources: Observatoire Crédit Logement and Bloomberg Source: INSEE PAGE 23

24 EVOLUTION OF HOME PRICES RESIDENTIAL INDEX PRICES EVOLUTION IN FRANCE (apartments, rebased Q1 1996) Existing homes (Paris) Existing homes (France) New homes (France) Q vs Q Q % -3.7% -2.4% -4.2% -0.6% +0.8% Sources: ECLN for new homes, prices per sqm ; INSEE Notaires for existing homes, prices per home PAGE 24

25 RESIDENTIAL RECENT AND UPCOMING LEGAL AND REGULATORY CHANGES: POTENTIAL IMPLICATIONS FOR NEXITY DEVELOPMENT Buy-to-let investment: Pinel scheme Revision of the zoning plan Rebound potential for individual investors segment Possibility to rent to one s parents and children More flexible scheme ( years) SERVICES ALUR Act Rent controls: general decree for the 28 supplyconstrained zones + testing in Paris starting 1 August 2015 Regulated format for standard rental lease starting 1 August 2015 Intermediate housing (10% VAT rate) Agreement signed with SNI Target: 800-1,100 homes/year over st preliminary agreement for 569 homes in February 2015 Home ownership in priority urban planning districts Reduced-VAT zones (5.5%) = 20% of Nexity s reservations and 44% of reservations placed by first-time buyers in 2014 Market share in this segment: 29% in 2014 Client base expansion opportunity to include lower-income categories Creating urban diversity Standard managing agent contract Decree dated 26 March 2015 listing the specific services that may be billed on top of flat-rate managing agent fees; takes effect starting 2 July 2015 Standardisation of managing agent contracts 30% of managing agent agreements currently handled by Nexity are already flat-rate contracts 2016 BUDGET Risk of budget cuts Discontinuation of APL personal housing subsidies for homebuyers as of 1 January 2016 Risk among homebuyer customers, especially in reduced-vat zones (5.5%) Tighter income conditions to qualify for APL PAGE 25

26 STARS ALIGN FOR REAL ESTATE MARKETS RESIDENTIAL Ultra-low interest rates Quantitative easing from early 2015: policy rates at zero and bond purchases for at least 18 months 10-year OAT (French government bond) at 0.50%* Possibility for banks and institutionals to refinance at rates close to zero Collapse in bond yields => increased attractiveness of commercial and residential real estate assets, with positive real rates of return for investors (notably insurers) An improved regulatory environment Valls plan passed by French parliament and implemented as of January 2015: a plan to stimulate demand, expected to produce results within 18 months Pinel scheme more flexible, more attractive Intermediate housing VAT at 5.5% in 1,200 priority city policy districts More generally, increased awareness of negative effects of previous policies (ALUR Act) But the housing production chain remains obstructed 2014: fewest housing starts in France since 1997 (6 million more people) Scarcity and high cost of buildable land in supply-constrained areas Economic trade-offs for elected officials, administrative complexity And still 5,000 standards to comply with for every new home * Average over the last two months PAGE 26

27 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 27

28 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%)

29 4. H BUSINESS ACTIVITY

30 NEXITY NEW HOME RESERVATIONS IN FRANCE RESIDENTIAL VOLUME (in units, excluding international) 10,919 10,808 11,854 11,424 10,191 10,121 10,365 7,307 H2 +13% 5,284 5,794 5,270 4,432 5,325 4,633 4,441 4,537 5,136 H PAGE 30

31 H RESERVATIONS RESIDENTIAL VOLUME (in units) +11.9% VALUE (in m, incl. VAT) +20.9% 5,384 5, , Subdivisions International , ,441 4, % ,365 4,816* New homes PERL % 1, * H H H H H H > At a constant scope of consolidation, new homes reservations in France increased by 7% in volume and 11% in value * Excluding PERL PAGE 31

32 H RESERVATIONS IN FRANCE BY AREA RESIDENTIAL VOLUME (in units) 4,441 45% 4,537 42% +13% 5,136 37% Paris region VALUE (in m, incl. VAT) % % +22% -1% +11% 1, % 55% 58% +23% 63% Rest of France 46% 50% +33% 54% H H H H H H PAGE 32

33 NEXITY NEW HOME COMMERCIAL LAUNCHES RESIDENTIAL (France, excluding Iselection and PERL, in units) 10,989 9,344 T4 T3 2,975 5,509 4, % Q2 1,154 1,155 Q > Dynamic commercial launches policy: 18% increase of the number of operations launched (65 in H1 2015) PAGE 33

34 KEY CLIENT SEGMENTS PERFORMANCE RESIDENTIAL NEW HOME RESERVATIONS BREAKDOWN BY CUSTOMER TYPE (excl. International, in units) +13% 5,136 H /H ,441 4,537 26% Professional landlords -24% 34% 38% 32% 31% 48% Individual investors +77% 5% 7% 6% Other home buyers +5% 29% 24% 20% First-time buyers -7% H H H PAGE 34

35 PROFESSIONAL LANDLORDS RESIDENTIAL BREAKDOWN OF RESERVATIONS BY PROFESSIONAL LANDLORDS (in units, excluding International) 1,493 1,738-24% 1,324 > Sharp drop in sales to professional landlords, essentially due to one-off events (delays in obtaining building permits) > Growth trend for sales in private and intermediate sectors 1,450 1, social housing % unregulated housing intermediate housing excluding SNI SNI Non-social H H H PAGE 35

36 PRICE TRENDS RESIDENTIAL NEW HOME NEXITY CLIENTS (in thousand of euros, excl. Iselection, PERL, International, and bulk sales) Paris Region Paris Region excl. Paris Regions H1 H H H Var. Average home price incl. VAT per sq.m. 3,801 3, % Average surface area per home (sq.m.) % Average price incl. VAT per home ( k) % PAGE 36

37 NEXITY NEW HOME COMMERCIAL OFFER RESIDENTIAL COMMERCIAL OFFER (in units, excl. Iselection, PERL and International) 6,988 2% +3% 52% 3,663 3,542 4,202 4,293 5,058 28% 5,313 29% 5,493 29% 86 Completed new homes New homes under construction 46% 71% 69% 70% New homes in project phase H PAGE 37

38 NEXITY BUSINESS POTENTIAL RESIDENTIAL BUSINESS POTENTIAL* FOR NEW HOMES (in units, excl. Iselection, PERL and International) +18% 28,693 22,824 28% 19,057 21,285 23,143 23,941 23,100 24,280 35% +45% 44% Paris region 72% 65% 56% Rest of France +3% H H *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 PAGE 38

39 COMMERCIAL MARKETS COMMERCIAL TAKE-UP IN PARIS REGION (in millions of sq.m) % COMMERCIAL INVESTMENT MARKET IN PARIS REGION (in billions of euros) Q4 Q3 Q2 Q % 2013 Source: JLL, Panorama bureaux Ile-de-France Q PAGE

40 H NEW ORDER INTAKE AND BACKLOG COMMERCIAL ORDER INTAKE (in M) 544 BACKLOG (in M) % > H1: target 31 Dec H revenue H order intake additional works & other adjustments 30 June 2015 PAGE 40

41 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 41

42 SERVICES: UNITS UNDER MANAGEMENT SERVICES PROPERTY MANAGEMENT FOR INDIVIDUALS (PMI) (in thousands of units) % 940 REAL ESTATE SERVICES TO COMPANIES (Nexity Property Management) (in millions of sq.m under mgmt) % 12.4 Condominium management Rental management H H > On a like-for-like basis (excluding the sale of Nexity s business in Switzerland 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 -1.6% (-2.4% in H1 2014) PAGE 42

43 SERVICES: H HIGHLIGHTS SERVICES AND NETWORKS > Improvement in property management to individuals (margin rate increased from 5.1% to 6.7%) > offset by negative developments in other businesses 21m paid for: PROPERTY MANAGEMENT > Acquisition of Pierre Bérard firms (Paris region): ~ 10m in revenue, 16,157 units managed > Oralia s acquisitions of Optim (Dijon), Ardouin (Paris, in December 2014), and Lataste (Bordeaux) ~ 4m in revenue, 6,007 units managed Discontinuation of activity in Switzerland, i.e. 2,205 units NEXITY ADVISORY AND BROKERAGE (FORMERLY KEOPS) > Changed name and strategy > Business line restructuring begun > Change in management: Valérie Mellul (Managing Director); Guy Deforge, Olivier de Molliens, William Morelli and Mathieu de Saint-Albin (Deputy Managing Directors of business lines) PAGE 43

44 3 LEVERS TO IMPROVE THE PROFITABILITY OF REAL ESTATE SERVICES TO INDIVIDUALS SERVICES EXTERNAL GROWTH April 2014: acquisition of Oralia (property management) February 2012: acquisition of Icade Résidences Services (student residences) Policy of targeted acquisitions of property management agencies PRODUCTIVITY GAINS Head office: reorganisation on-going Network: optimisation and productivity Back-office centralisation ORGANIC GROWTH Launch of new offerings in 2013 and 2014 and media campaign Development of employees sales culture Strong upside in transactions and brokerage MARGIN OF PROPERTY MANAGEMENT FOR INDIVIDUALS >10.0% >9.0% 7.6% 4.1% target 2016 target PAGE 44

45 URBAN REGENERATION: MAIN OPERATIONS OTHER ACTIVITIES ASNIÈRES 98,500 sq.m Île-de-France MONTREUIL 63,350 sq.m ERMONT EAUBONNE 9,800 sq.m Lyon ST-PRIEST 145,600 sq.m Marseille ST-OUEN 152,300 sq.m > ~545,700 sq.m in the portfolio at 30 June 2015 MARSEILLE DOCKS LIBRES 30,000 sq.m PAGE 45

46 NEXITY BACKLOG* AT 30 JUNE 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 2,854 Residential real estate Dec Dec Dec Dec Dec Dec June 2015 * Corresponds to the Group s order backlog in terms of forecast revenue and number of months of development activity PAGE 46

47 5. H FINANCIALS

48 H CONSOLIDATED REVENUE* (in M) +20.9% 44 1, , Other activities Services & Distribution Networks Commercial +5.4% +92.9% Residential +21.4% PERL Oralia H Residential Commercial Services & Distribution networks Other activities H > Revenue up 17% excluding changes in scope * According to IFRS but with joint ventures proportionately consolidated PAGE 48

49 H SERVICES & DISTRIBUTION NETWORKS REVENUE* (in M) +5% % Franchises 14% NPM+ NCT (formerly Keops) Services to corporates 19% Studéa 13% Oralia Services to individuals 48% PMI** excl. Oralia H Acquisition of Oralia (1st April 2014) Services to individuals Services to corporates Franchises H * According to IFRS but with joint ventures proportionately consolidated ** property management to individuals PAGE 49

50 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 50

51 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 51

52 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 52

53 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 53

54 DIGITAL TRANSFORMATION AND INNOVATION Blue office : 5 Blue Office opened Weroom : increase of audience indicator Various plans for new online services, transforming customer relations and rolling out paperless processes Blue Office => Marginal revenue contribution for the moment At 30 June 2015 : Impact on P&L: 8 million Annual investment: ~ 20 million P&L impact confirmed PAGE 54

55 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 55

56 H GOODWILL* EVOLUTION (in M) + 6 M Networks 1, , Services Commercial Residential Dec Acquisitions in services PERL and Térénéo adjustments June 2015 * According to IFRS but with joint ventures proportionately consolidated PAGE 56

57 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 57

58 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 58

59 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 59

60 6. OUTLOOK

61 OUTLOOK FOR 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 FINANCIALS > Consolidated revenue target for 2015: at least 2.9 billion (versus 2.75 billion announced in February 2015) > Current operating profit target for 2015: at least 200 million, after 20 million annual investment (P&L impact) 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 61

62 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 62

63 7. APPENDIX

64 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 64

65 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 65 (1) Crédit Foncier de France PAGE 65

66 NEXITY: A LEADER IN ITS MARKET 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 66

67 NEXITY, A BENCHMARK DIGITAL COMMUNICATION PLAYER ACTIVE IN A SECTOR WHERE THE ALL-DIGITAL CONCEPT STILL HAS LIMITED IMPACT September 2014: launch of Nexity Connects Everyone Nexity takes up the challenge of digitisation Background Objectives Means > The real estate sector still little affected by the rush to all digital, all the time, BUT The use of the Internet to serve various functions in the sector is seeing strong growth (ads, reservations, etc.) Potential for the automation of tasks performed by real estate agents and property managers > 80%* > Nexity is already a benchmark player 800,000 unique visitors per month to nexity.fr 260,000 downloads of mobile applications (20% of ad views) > Create value for clients > New collaboration solutions > Support the growth of Nexity s business activities > Comprehensive, structured and gradual transformation programme over 3 years > Capital expenditure programme of around m20 / year (10% OI) > Selection of priority projects > Development of innovative projects using an agile management approach Processes digitisation Smart homes and office buildings Collaborative initiatives with clients * According to a study by Oxford released in June 2013 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% Q vs Q4 2013: +0.6% Construction costs 52% Q Networks 4% Land costs 20% 2014 Sources: INSEE, Nexity PAGE 71

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