2016 FULL-YEAR RESULTS WEBCAST 21 FEBRUARY 2017

Transcription

1 FULL-YEAR RESULTS WEBCAST 21 FEBRUARY 2017

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 13 April, 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 1. HIGHLIGHTS

4 TARGETS* EXCEEDED Guidance** GROWTH IN NEW HOME RESERVATIONS IN FRANCE +35% by volume +29% by value > +15% to +20% by volume COMMERCIAL REAL ESTATE ORDER INTAKE 356m CONSOLIDATED REVENUE +1% 3.1bn CURRENT OPERATING PROFIT +21% 266m > 250m Stable, around 3bn > 235m, revised at > 245m in May GROUP OPERATING PROFIT MARGIN +1.5 pt 8.7% NEXITY RESIDENTIAL MARKET SHARE 12.7% +1.4 pt BACKLOG FROM DEVELOPMENT ACTIVITIES +22% 4.0bn NET FINANCIAL DEBT 317m Gearing 20% * According to IFRS with joint ventures proportionately consolidated ** Announced on 17 February, as partly revised upward on 31 May, 21 July et 27 October PAGE 4

5 NEXITY KEY FIGURES* RESIDENTIAL REAL ESTATE NEW HOME RESERVATIONS (in volume) 12,562 14,235 18, % vs 2014 GROUP S 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 PAGE 5

6 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 PAGE 6

7 A NEW MANAGEMENT TEAM TO IMPLEMENT THIS STRATEGY Alain Dinin Chairman and CEO INDIVIDUAL CLIENTS COMMERCIAL CLIENTS LOCAL AUTHORITY CLIENTS INTERNAL CLIENTS Jean-Philippe Ruggieri Deputy Chief Executive Officer Residential real estate Frédéric Verdavaine Deputy Managing Director Real estate services for individuals Bruno Corinti Deputy Chief Executive Officer Julien Carmona Deputy Chief Executive Officer Development of new homes and subdivisions Commercial real estate development Offices, warehouses, retail premises, hotels, etc. Group support functions (Finance, Legal, HR, Digital, etc.) Property management, Management of residences (Studéa, Domitys) Franchise networks (Century 21, Guy Hoquet) Property management and advisory services for commercial real estate Villes & Projets Urban planning, project management for urban regeneration and smart city development Strategy and Innovation International Categories for financial communication: Residential real estate Services Commercial real estate Other activities Nexity s new Strategic Plan will be prepared and unveiled in 2018 PAGE 7

8 2. BUSINESS ACTIVITY

9 T1 T2 T3 T 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) % Monthly installment down 6% since December (1) % Average 90 : % 0.83% 0.57% 0.18% Mortgage rates TEC 10 (average rate over the period) Sources : Observatoire Crédit Logement and Finance Active Source : INSEE (1) Source: Nexity Solutions Crédit for a 20-year loan of 150,000 euros PAGE 9

10 TAX AND REGULATORY ENVIRONMENT 01/01/ /01/ 01/01/ INTERMEDIATE HOUSING Status created for institutional investors > 10% VAT rate (instead of 20%) > 20 years of property tax exemption BUY-TO-LET INVESTMENT Switch from «Duflot» to «Pinel» scheme > More flexible ( years) > 18% tax reduction for 9 years of renting > Extended to parents & children > More favorable maximum admissible rents on due to rezoning of french territory INCREASED SUPPORT FOR HOME BUYERS - New PTZ since January 1, (portion of the property price financed by the PTZ increased to 40%) Gradual build-up More attractive Strong success 1,300 QPV* created VAT reduced to 5.5% for firsttime buyers Pinel and PTZ extended until end of 2017 * Priority urban planning districts PAGE 10

11 Dec. -14 Dec.-15 Dec.-16 Dec.-14 Dec.-15 Dec.-16 FRENCH RESIDENTIAL MARKET: BUILDING PERMITS & HOUSING STARTS BUILDING PERMITS (in number of units, 12 months rolling) HOUSING STARTS (in number of units, 12 months rolling) 396, % 453, , % 376,500 Source : Commissariat Général au Développement Durable (CGDD) PAGE 11

12 NEW HOME RESERVATION MARKET IN FRANCE (DEVELOPERS) DEVELOPERS NEW HOME RESERVATIONS (in units) 126, , ,800 Average : 104,700 78, , ,000 88,900 89,300 87, % 125, , e 2017e Sources : Commissariat Général au Développement Durable (Sit@del2 basis) Nexity s estimation for and 2017 PAGE 12

13 NEXITY NEW HOMES RESERVATIONS VOLUME (in units) VALUE (in m, incl. VAT) +32.7% +29.1% 93 12,562 2,104 10, ,235 2,202 11,741 18,890 2, ,365 15, % Subdivision International 10 New homes incl. Edouard Denis 2, , , ,285 3, % 2,943 1, New homes reservations in France are up 35% in volume and 29% in value (+28% in volume and +23% in value at constant perimeter) PAGE 13

14 NEXITY NEW HOME RESERVATIONS IN FRANCE: QUARTERLY CHANGE NEW HOME RESERVATIONS (in units) at constant perimeter * +10% 3,052 3, % +35% 4,237 3, % 2,949 2,947 2,187 2,368 4,654 4,121 3,329 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q * +23% in Q4 including Edouard Denis (547 reservations) PAGE 14

15 KEY CLIENT SEGMENTS PERFORMANCE VOLUME (in units, excluding Edouard Denis) +28% 15,051 10,365 36% 37% 11,741 35% 43% +15% +30% 32% 44% Professional landlords Individual investors 6% 21% 5% 16% +36% +49% 6% 19% Other home buyers First-time buyers 2014 PAGE 15

16 NEXITY NEW HOMES : PRICE TRENDS NEW HOMES NEXITY CLIENTS (in thousand of euros, excl. Iselection, PERL, Edouard Denis, International, and bulk sales) Paris region Paris region Excl. Paris Rest of France Var. Average home price incl. VAT per sq.m. 3,843 3, % Average surface area per home (sq.m.) % Average price incl. VAT per home ( k) % PAGE 16

17 NEXITY NEW HOMES : SUPPLY FOR SALE NEXITY NEW HOMES SUPPLY (in units, incl. Iselection and PERL from, Edouard Denis and Primosud from, and excl. International) 6,988 2% 52% 3,663 3,542 4,202 4,293 5,058 5,313 +5% 6,773 6,438 2% 39% 34% -12% 5,661 E.Denis and Primosud Completed new homes New homes under construction 46% 60% 64% New homes in project phase PAGE 17

18 NEXITY BUSINESS POTENTIAL BUSINESS POTENTIAL* FOR NEW HOMES (in units, incl. Iselection and PERL from, Edouard Denis and Primosud from, and excl. International) 2.6 YEARS OF ACTIVITY +21% 41,813 34,453 +6% 36,367 E.Denis and Primosud 22,824 28% 19,057 21,285 23,143 23,941 23,100 24,832 45% 49% Paris region 72% 55% 51% Rest of France * 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 18

19 COMMERCIAL REAL ESTATE MARKETS TAKE-UP IN PARIS REGION (in millions of sq.m.) % FRENCH COMMERCIAL REAL ESTATE INVESTMENTS (in billions of euros) % Offices off-plan sales : 2.3 billion at end- Incl. 61% of speculative investments % in investments and +7% for take-up in the Paris region in compared to Sources: CBRE, Paris Region Office and Investment France, Q4 PAGE 19

20 COMMERCIAL REAL ESTATE NEW ORDER INTAKE AND BACKLOG NEW ORDER INTAKE (in m) BACKLOG (in m) 544 TARGET EXCEEDED Average : % Target 31 Dec. Revenue Order intake Additional works & other adjustments 31 Dec. > 356 million order intake for of which 97 million outside Paris region, mainly thanks to wood-frame constructions > Backlog is equivalent to 21 months revenue from development activities (revenue basis, 12 months rolling period) PAGE 20

21 SERVICES KEY FIGURES SERVICES REVENUE BREAKDOWN () PROPERTY MANAGEMENT FOR INDIVIDUALS (PMI) (in thousands of units) PROPERTY MANAGEMENT FOR COMPANIES (NPM) (in millions of sq.m. under mgmt) Real estate services to companies Nexity Property Management Brokerage & Advisory (NCT) PMI Condominium management Rental management Brokerage Lettings %* % % Condominium management % 62% Rental management Other services to individuals Studéa (student housing) Franchise networks * 2.9% churn rate in (2.6% in ) in property management for individuals on a like-for-like basis (excl. the sale of SIP s PMI agencies in Toulon, Lorient and Saint-Gilles-Croix-de-Vie, SIP s acquisitions in Paris and Aix-en- Provence and excl. Oralia s acquisitions of 2 agencies in Paris) PAGE 21

22 3. FINANCIAL RESULTS

23 CONSOLIDATED REVENUE* (in m) +0.5% 3, , Other activities Services -1.9% Commercial -19.1% 2,162 2,267 Residential +4.9% Residential Commercial Services Other activities > Revenue remaining stable compared to, with growth in Residential real estate offsetting lower revenue in Commercial real estate > 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: no contribution to operating profit or revenue due to the restatement of the purchase price allocation (neutralisation of revenue arising from business activity prior to the acquisition) * According to IFRS with joint ventures proportionately consolidated PAGE 23

24 CURRENT OPERATING PROFIT* CURRENT OPERATING PROFIT (in m) OPERATING PROFIT MARGIN (in %) +21% Services Commercial Residential 9.0% 10.3% 18.6% 9.1% 8.6% 8.7% 7.0% 7.2% Other activities Residential Commercial Services Group > 266m operating profit after 18m total expenses from digital and innovation > Current operating profit up 21% > Margin rate increase in all Group divisions * According to IFRS with joint ventures proportionately consolidated PAGE 24

25 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 PAGE 25

26 EBITDA* EBITDA** (in m and as a % of revenue) +17% 260 (8.5%) 46 (9.2%) 39 (10.2%) 305 (9.9%) 55 (11.2%) 57 (18.5%) Services Commercial Property Management for individuals EBITDA margin: 12.9% in vs 11.7% in 189 (8.8%) 210 (9.3%) Residential Other activities * 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 PAGE 26

27 CONSOLIDATED INCOME STATEMENT* in m Revenue 3, ,057.1 EBITDA % EBITDA / Revenue 9.9% 8.5% Current operating profit % Current operating profit / revenue 8.7% 7.2% Net financial income (expenses) (28.0) (20.3) Taxes (89.0) (73.7) Share of profit / (loss) from equity accounted-investments (7.2) (0.5) Non-controlling interests (3.2) (2.0) Group share of net profit % +17% +21% +13% * According to IFRS with joint ventures proportionately consolidated PAGE 27

28 WORKING CAPITAL REQUIREMENT* (in m) + 159m Incl. external growth: Residential Other activities (incl. income tax) Services Commercial Residential Commercial Services Other activities incl. income tax Pre-sale rate of off-plan (VEFA) projects : 72% * According to IFRS with joint ventures proportionately consolidated PAGE 28

29 CHANGE IN NET CASH/DEBT POSITION* (in m) - 214m Cash flow from operations before WCR, interest and tax Changes in operating WCR Interest and tax payments Dividend CAPEX External OCEANE growth net impact (shareholders equity) Other** * According to IFRS with joint ventures proportionately consolidated ** Including an adjustment on put options granted to non-controlling interests PAGE 29

30 CASH FLOW STATEMENT* In m 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) (28) 87 Change in tax-related working capital, dividends from equity-accounted investments and other 37 4 Net cash from / (used in) operating investments (23) (20) Free cash flow Net cash from / (used in) financial investments (57) (0) Dividends paid by Nexity SA (120) (108) Net cash from / (used in) financing activities (excliding dividend) (112) 42 Change in cash and cash equivalent (122) 154 * According to IFRS with joint ventures proportionately consolidated PAGE 30

31 4. OUTLOOK

32 NEXITY BACKLOG* AT 31 DECEMBER BACKLOG (in m, excl. VAT, incl. Iselection, PERL, International and Edouard Denis) 19 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES +22% 4,008 2,734 3,315 3, ,355 3, , Commercial 390 2,344 2,606 2,702 2,869 2,834 2,806 3,464 Residential Dec Dec Dec Dec Dec Dec. Dec. * 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 PAGE 32

33 OUTLOOK FOR 2017* NEW HOME RESERVATIONS Growth of Nexity s new home reservations in a 2017 French market expected stable (125,000 reservations), Nexity s market share increase of around 1 point COMMERCIAL REAL ESTATE ORDER INTAKE At least 350 million REVENUE Sales growth of around 10% CURRENT OPERATING PROFIT DIVIDEND PAID IN 2017** 300 million, one year in advance compared to initial medium term guidance ( 300m in FY 2018, as of Feb. ) 2.40 per share * Financial data and indicators based on Nexity s operational reporting, with joint ventures proportionately consolidated ** Pending decision of Nexity s Board of Directors and approval of the General Shareholders Meeting PAGE 33

34 MEDIUM-TERM TARGET NEXITY SHARE OFFERS GROWTH Current operating profit * 220m 266m 300m 325m RETURN Dividend per share paid ** 2.4 ** * Financial data and indicators based on Nexity s operational reporting, with joint ventures proportionately consolidated ** Pending decision of Nexity s Board of Directors and approval of the General Shareholders Meeting PAGE 34

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