H BUSINESS ACTIVITY AND REVENUE WEBCAST 21 JULY 2016

Transcription

1 BUSINESS ACTIVITY AND REVENUE WEBCAST 21 JULY 2016

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 2016, 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 / RESULTS PAGE 1

3 1. BUSINESS ACTIVITY

4 SUMMARY (1) EXTERNAL GROWTH Nexity acquires 55% stake in Edouard Denis (2) Edouard Denis will be consolidated (residential real estate division) from 1 July 2016 (no impact on revenue and operating profit in ) GROWTH IN NEXITY S NEW HOME RESERVATIONS +38% growth in volume / +30% in value in compared to H new home reservations in France reservations for residential real estate (new homes in France and international, and subdivisions) : all-time high FINANCIALS Revenue : stable compared to ( 1.36 billion) Current operating profit : up 16% ( 107 million) compared to H Margin rate up, at 7.9% (6.9% at 30 June 2015) Net profit : up 8% ( 52 million) compared to H Net debt : 243 million at 30 June 2016, vs 102 million at 31 December 2015 (16% gearing) (1) Financial data and indicators based on Nexity s operational reporting, with joint ventures proportionately consolidated. Moreover, all 2016 indicators are presented exclusive of Edouard Denis. (2) See separate press release, dated 16 February 2016 NEXITY / RESULTS PAGE 3

5 Q Q Q Q Q Q Q June June 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) % Average: % 0.49% 0.38% mortgage rates French governement 10-year bond (OAT) Source : Observatoire Crédit Logement and Finance active Source : INSEE NEXITY / RESULTS PAGE 4

6 TAX AND REGULATORY ENVIRONMENT 01/01/ /01/ /01/2016 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, 2016 (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 Extension of «Pinel» scheme until end of 2017, announced by F. Hollande on April 8, 2016 * Priority urban planning districts NEXITY / RESULTS PAGE 5

7 May 14 May 15 May 16 May 14 May 15 May 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) 366, % 402, ,023 +5% 355,600 Source : Commissariat Général au Développement Durable NEXITY / RESULTS PAGE 6

8 RESIDENTIAL MARKET : SALES & NEW SUPPLY SALES AND NEW SUPPLY AT 31 MARCH 2016 (number of apartments, in units) 40,000 Sales New supply 35,000 30,000 25,000 20,000 15,000 Q sales +16% vs Q1 15 Q new supply +18% vs Q ,000 Q Q Source : Commissariat Général au Développement Durable NEXITY / RESULTS PAGE 7

9 NEW HOME RESERVATION MARKET IN FRANCE (DEVELOPERS) DEVELOPERS NEW HOME RESERVATIONS (in units) % 126, , , ,800 Average : 102,600 78, ,000 88,900 89,300 87, % 103,500* 120,000** e * Updated figures released by the Commissariat Général au Développement Durable (Sit@del2 basis) ** 15-20% growth compared to 2015 Outlook revised up on May 31, 2016 (guidance in February 2016 : +5-10% around 110,000 reservations) Sources : Commissariat Général au Développement Durable Nexity s estimation for 2016 NEXITY / RESULTS PAGE 8

10 NEXITY NEW HOMES : RESERVATIONS VOLUME (in units) VALUE (in m, incl. VAT) +38.1% +31.6% 13 5, , , ,136 8,382 1, % 10,365 7,068 Subdivision International New homes , , % 1, ,308 1,924-1 H H H H New home reservations in France are up 38% in volume and 30% in value NEXITY / RESULTS PAGE 9

11 NEXITY NEW HOME RESERVATIONS IN FRANCE: QUARTERLY CHANGE NEW HOME RESERVATIONS (in units) +35% +40% 4,237 4,121 2,949 2,947 1,857 1,660 1,815 2,187 2,368 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q NEXITY / RESULTS PAGE 10

12 NEXITY NEW HOME RESERVATIONS IN FRANCE: HALF-YEARLY CHANGE NEW HOME RESERVATIONS (in units) +38% 7,068 4,702 5,284 4,432 5,794 5,270 5,325 4,633 4,441 4, % 5,136 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H NEXITY / RESULTS PAGE 11

13 KEY CLIENT SEGMENTS PERFORMANCE NEW HOME RESERVATIONS BREAKDOWN BY CUSTOMER TYPE (excluding International, in units) +38% 7,068 5,136 23% Professional landlords +21% 26% 49% Individual investors +39% 48% 6% 20% 7% 22% Other home buyers First-time buyers +53% +50% H NEXITY / RESULTS PAGE 12

14 NEXITY NEW HOMES : PRICE TRENDS NEW HOMES NEXITY CLIENTS (in thousand of euros, excl. Iselection, PERL, International, and bulk sales) Paris region Paris region excl. Paris Rest of France H1 15 H1 16 H Var. Average home price incl. VAT per sq.m. 3,793 3, % Average surface area per home (sq.m.) % Average price incl. VAT per home ( k) % NEXITY / RESULTS PAGE 13

15 NEXITY NEW HOMES : SUPPLY FOR SALE NEXITY NEW HOMES SUPPLY (in units, incl. Iselection, PERL from 2015 and excl. International) 6,988 2% 52% 3,663 3,542 4,202 4,293 5,058 5,313-3% 6,438* 6,244* 39% 33% Completed new homes New homes under construction 46% 60% 66% New homes In project phase * Data now include PERL, Iselection and Villes & Projets. The 2015 figures have been restated in the same way in order to facilitate comparison between the two years. The impact of these restatements increase supply of 557 units and 531 units for NEXITY / RESULTS PAGE 14

16 NEXITY BUSINESS POTENTIAL BUSINESS POTENTIAL** FOR NEW HOMES (in units, incl. Iselection, PERL and V&P from 2015, excl. International) +4% 34,453* 35,742* 22,824 28% 19,057 21,285 23,143 23,941 23,100 24,832 45% 46% Paris Region 72% 55% 54% Rest of France * Data now include PERL, Iselection and Villes & Projets. The 2015 figures have been restated in the same way in order to facilitate comparison between the two years. The impact of these restatements increase business potential of 4,008 units et 4,993 units for ** 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 NEXITY / RESULTS PAGE 15

17 COMMERCIAL MARKETS TAKE-UP IN PARIS REGION (in millions of sq.m) T % FRENCH COMMERCIAL REAL ESTATE INVESTMENTS (in billions of euros) Offices, 5.3 bn, +3% compared to H % % in investments and +20% for take-up in Paris region in compared to H Sources: CBRE, bureaux Ile-de-France and Investissement France, NEXITY / RESULTS PAGE 16

18 COMMERCIAL REAL ESTATE NEW ORDER INTAKE AND BACKLOG ORDER INTAKE (in m) BACKLOG (in m) % Target 31 Dec Revenue order intake Additional works & other adjustments 30 June million order intake for (>90% on regional markets), of which 55 million in wood-frame constructions Backlog is equivalent to 17 months revenue from development activities (revenue basis, previous 12 months period) NEXITY / RESULTS PAGE 17

19 SERVICES: UNITS UNDER MANAGEMENT PROPERTY MANAGEMENT FOR INDIVIDUALS (PMI) (in thousands of units) REAL ESTATE SERVICES TO COMPANIES (Nexity Property Management) (in millions of sq.m under mgmt) % % 12.4 Condominium management Rental management % churn rate in in property management for individuals on a like-for-like basis* (1.6% in H1 2015) * excluding the sale of a PMI agency InToulon NEXITY / RESULTS PAGE 18

20 2. FINANCIAL RESULTS* * According to IFRS with joint ventures proportionately consolidated

21 CONSOLIDATED REVENUE * (in m) +0.8% 1, , Other activities Services & Networks Commercial +0.4% -36.3% Residential +10.1% H Residential Commercial Services & Networks Other activity Revenue stable compared to H1 2015, the progress of operations in residential division offsetting the revenue decline in commercial division * According to IFRS with joint ventures proportionately consolidated NEXITY / RESULTS PAGE 20

22 CURRENT OPERATING PROFIT * CURRENT OPERATING PROFIT (in m) OPERATING PROFIT MARGIN (in %) +16% Services & Networks Commercial 17.0% (11.0%)** Résidential 8.1% (7.8%)** 6.3% (5.0%)** 7.9% (6.9%)** -11 H Other activities Residential Commercial Services & Networks Group Current operating profit up 16% and margin rate increase (1 point) * According to IFRS with joint ventures proportionately consolidated ** Operating margin H NEXITY / RESULTS PAGE 21

23 CONSOLIDATED INCOME STATEMENT* In m H Revenue 1, ,347.0 EBITDA % EBITDA / revenue 8.8% 7.4% Current operating profit % +20% +16% % current operating profit / revenue 7.9% 6.9% Net financial income (expense) (14.8) (10.1) Taxes (34.9) (32.1) Share of profit/(loss) from equity-accounted investments and non-controlling interests (4.5) (1.3) Group share of net profit % * According to IFRS with joint ventures proportionately consolidated NEXITY / RESULTS PAGE 22

24 WORKING CAPITAL REQUIREMENT* (in m) + 16m Other activities (incl. income tax) Residential Résidential Commercial Services & Networks Other activities (incl. income tax) Services & Networks Commercial Residential WCR : controlled growth at 603m (+ 14m) Pre-sale rate of off-plan (VEFA) projects : 72% * According to IFRS with joint ventures proportionately consolidated NEXITY / RESULTS PAGE 23

25 CHANGE IN NET CASH/DEBT POSITION * (in m) m Cash flow from operations before WCR, interest and tax Changes in operating WCR Interest and tax payments Dividend CAPEX Edouard OCEANE Other Denis net impact (shareholders equity) * According to IFRS with joint ventures proportionately consolidated NEXITY / RESULTS PAGE 24

26 CONVERTIBLE BONDS ISSUANCE AND REPURCHASE OF «OCEANE» BONDS (May 2016) On 10 May 2016, Nexity successfully issued new convertible bonds (OCEANE) maturing 2023 ( 270m) and repurchased existing OCEANE (maturing 2020) (initial amount 180m). Well-received transaction (> 4x oversubscribed ; Nexity share price on issue day up 2.5%). IMPROVED CONDITIONS FINANCIAL IMPACT Interest rate : 0.125% vs 0.625% Maturity extension (+3 years) 40m new money Higher conversion price ( vs ), reducing dilution risk for shareholders Consolidated accounts : One-off financial expense of 4.8m (expensing of arrangement costs) Decrease in shareholders equity : 16.5m Increase in net debt : 31m Statutory accounts: Capital loss potentially generating tax savings Potential dilution of the new bonds in line with the one of the existing bonds (7.4%), in spite of higher amount issued Improved dividend protection features for shareholders NEXITY / RESULTS PAGE 25

27 CASH FLOW STATEMENT* In m 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) (9) (23) Change in tax-related w orking capital, dividends from equity-accounted investments and other 16 2 Net cash from / (used in) operating investments (10) (9) Free cash flow Net cash from / (used in) financial investments (55) 6 Net cash from / (used in) financial investing activities (excliding dividend) (41) 12 Dividends paid by Nexity SA (121) (108) Change in cash and cash equivalent (148) (77) * According to IFRS with joint ventures proportionately consolidated NEXITY / RESULTS PAGE 26

28 3. OUTLOOK

29 NEXITY BACKLOG * AT 30 JUNE 2016 BACKLOG (in m, excl. VAT, incl. Iselection, PERL and International) 17 MONTHS REVENUE FROM DEVELOPMENT ACTIVITIES 2,751 3,324 3, ,302 3, , , Commercial 390 2,361 2,615 2,715 2,849 2,864 2,806 3,118 Residential Dec Dec Dec Dec Dec Dec June 2016 * According to IFRS with joint ventures proportionately consolidated Corresponds to the Group s order backlog in terms of forecast revenue and number of months of development activities NEXITY / RESULTS PAGE 28

30 OUTLOOK FOR 2016 (1) EXTERNAL GROWTH Nexity takes a majority stake in the capital of Edouard Denis (2) and Primosud (3) GROWTH IN NEXITY S NEW HOME RESERVATIONS Consistent with estimated French market volume around 120,000 reservations for 2016 (4) COMMERCIAL REAL ESTATE ORDER INTAKE Around 250 million REVENUE Stable, around 3 billion CURRENT OPERATING PROFIT Revised up : at least 245 million (at least 235 million annonced in February 2016) DIVIDEND Dividend payment of 2.2 per share in 2017 (5) (1) Financial data and indicators based on Nexity s operational reporting, with joint ventures proportionately consolidated. Moreover, all 2016 indicators are presented excluding Edouard Denis and Primosud. (2) See press release, dated 16 February 2016 (3) See press release, dated 24 May 2016 (4) 15-20% growth compared to 2015 Outlook revised up on May 31, 2016 (guidance in February 2016 : +5-10% around 110,000 reservations) (5) Pending decision of Nexity s Board of Directors and approval of the General Shareholders Meeting NEXITY / RESULTS PAGE 29

31 DIVIDEND DIVIDEND PER SHARE (in per share) (1) Paid in : (2) (1) Special dividend following the sale of the participation held in Eurosic (2) Pending decision of Nexity s Board of Directors and approval of the General Shareholders Meeting NEXITY / RESULTS PAGE 30