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Nexity: 2022 full-year results
Source: Nasdaq GlobeNewswire / 22 Feb 2023 10:45:00 America/Chicago
Paris, 22 February 2023, 5:45 PM CEST
NEXITY REACHES ITS OBJECTIVES AND OUTPERFORMS THE MARKET
Commercial performance in new homes: nearly 3 points gain in market share
- Strong resilience in new homes: 18,000 reservations in a 2022 new home market now estimated at ~120,000 units1 (-26%)
- Strengthened leadership: 15% market share in 2022
- Record occupancy rate for managed real estate activities (coworking and student residences)
Financial results in line with objectives
- Revenue above €4.6 billion, up 2% vs 2021
- Current Operating Profit at €367 million, in line with the record levels of 2021
- Operating margin around 8%
Indebtedness under control and financing secured
- Net financial debt2 at 31 December at €820m, i.e. 2.1x EBITDA, well below the Imagine 2026 ceiling (2.5x EBITDA)
- Corporate credit line renewed for 5 years and increased to €800 million with an extended pool
- Disposal of international activities underway (Poland and Portugal)
- Outlook: a transitional year
VÉRONIQUE BÉDAGUE, CHAIRWOMAN AND CHIEF EXECUTIVE OFFICER, COMMENTED: "Nexity achieved all its objectives despite the economic downturn in the second half of the year. Our ability to repeat this year a record performance as in 2021 reflects the exceptional agility of our teams and demonstrates the relevance of the strategic choices presented in September as part of the Imagine 2026 plan: the winning choice of bulk sales, the development of our Services activities and in particular of managed real estate, which responds perfectly to the changing needs of our clients, and our size, which has enabled us to contain the impact of construction costs on our cost prices. Given the difficult environment we have faced this year, I am extremely grateful to all our employees for their constant commitment, which has enabled us to continue to perform among the best in our sector. I am particularly proud that these excellent financial results are accompanied by a concrete environmental performance, with in particular our achievement in the first year of the implementation of the French environmental regulation (RE 2020) of an average carbon weight of our building permits filed more than 10% better than the regulatory thresholds. The year 2023 is marked by many uncertainties. Retail sales slowed sharply at the end of the year (-36% in the second half), rental activity is suffering and commercial real estate development in the Paris region has still not recovered. Decline in the French new home market is expected to continue in the first half of 2023 before stabilising in the second half of the year, with pressure on sales prices. Selectivity in the commercial launches, optimisation of the cost of our products, the diversity of our supply-for-sale, the quality of our distribution network and the attention paid to the control of working capital will limit the impact on the Group's profitability. Our backlog, the strength of our team and our financial structure, enhanced by the renegotiation of our medium-term credit lines, allow us to reiterate the direction of the Imagine 2026 strategic roadmap set out last September.”
2022 PERFORMANCE BY DIVISION RESIDENTIAL REAL ESTATE The economic downturn has transformed a market that was initially short of supply into a market with more selective demand due to the increase in interest rates. Nexity's size and leadership positions have enabled a good resilience in its commercial activity and good growth in its financial results. Business activity Nexity has booked 18,015 units for new homes (-10% in volume) for a total of €3.9 billion (i.e., only -5% in value compared with 2021) in a French new home market expected to decline over the full year 2022, to around 120,000 units (-26%). The Group's market share is expected to increase by nearly 3 percentage points to around 15% by the end of 2022, in line with its strategic ambition to reach 20% by 2030. The average sales price per sq.m is up for both retail and bulk sales (+2.5% and +13% respectively). As early as July, Nexity had anticipated a contraction in retail sales and decided to temporarily shift its production to bulk sales. The decline in retail sales materialised in the second half of the year, with an acceleration in the fourth quarter reflecting the tightening of market conditions. In 2022, sales to institutional clients increased by 5% and accounted for more than half of the year's business activity (54% of reservations), while retail sales were down 24% for the year. The pace of building permit grants normalised in the second half of the year. As a result, the Group's supply-for-sale is being reconstituted, remains diversified to meet client expectations and remains low risk (less than 100 completed homes in inventory). The time-to-market remains fast and amounts to 6.8 months. The contribution of the Angelotti Group, consolidated since 1 November, represents 356 new home reservations (nearly 1,000 units over the entire year 2022). Financial results In € millions 2021 restated* 2022 Change Revenue 3,279 3,385 +3% Current operating profit 271 283 +4% Margin (as a % of revenue) 8.3% 8.4% +10 bps Working Capital Requirements (WCR) 1,029 1,166 % of backlog 18% 19% *Excluding disposed activities in 2021 (Century 21 and Ægide-Domitys) Revenue at the end of 2022 was up 3% thanks to the good level of transformation of reservations into notarial deeds with a strong acceleration in Q4 (+15% compared to Q4 2021). The Group has succeeded in maintaining its profitability with a high margin rate of 8.4%, reflecting its ability to maintain operating budgets and limit the impact of inflation on construction costs. In 2022, International activities made around €200 million in revenue and are profitable. Working capital requirements have increased (+140 million euro) to €1.2 billion, a level comparable to that reached on 30 June. The WCR/backlog ratio is in line with historical levels (19% of backlog). Outlook The national new home market should continue to decline in 2023, with the first half of the year following on from Q4 2022 trends and should stabilise in the second half. Nexity will maintain its leadership position thanks to its ability to adapt its new production to the financial capacities of its clients and changing uses. The French residential real estate backlog, which represents almost two years of activity (€5.3 billion), provides good visibility on 2023 revenue, which will be at approximately the same level as in 2022. Inflation in construction costs, although at a lower level than in 2022, will be more difficult to pass on in sales prices given the decline in real estate purchasing power, which will have a temporary impact on profitability until the cost of credit stabilises.
COMMERCIAL REAL ESTATE Business activity In a market context that is at the bottom of the cycle and still wait-and-see, Nexity recorded, as expected, a low level of order intake in 2022 (€190 million), mainly in the regions (nearly 70% of new orders for the period). The Group delivered 10 projects in 2022, including its new regional headquarters in Lyon Vaise and a 40,000 sq.m complex on the Bordeaux-Mérignac airport site, comprising a convention center, hotels and office buildings reflecting the diversity of the Group's expertise. Financial results As expected, 2022 revenue are down, given the level of order intake in 2022 and a high basis of comparison in 2021, which included the contribution of the order intake for the Reiwa building in Saint-Ouen for €124 million in revenue and €16 million in operating profit. The operating margin rate is high and remains above the normative level. In € millions 2021 2022 Change Revenue 492 380 -23% Current operating profit 59 45 -23% Margin (as a % of revenue) 11.9% 11.9% - Working Capital Requirements (WCR) 24 123 The increase in WCR corresponds mainly to new land bank positions in 2022. Outlook The outlook for commercial real estate is still marked by a wait-and-see attitude from investors, and order intake for commercial real estate should remain limited in 2023. The progress of major backlog operations (Eco Campus in La Garenne-Colombes and Reiwa in Saint-Ouen) will ensure revenue growth. SERVICES Services revenue was €938 million at the end of December 2022, up 10% compared with 2021, mainly driven by the managed real estate activities (Serviced properties). In € millions 2021 restated* 2022 Change Revenue 853 938 +10% Of which Property Management 379 382 +1% Of which Serviced properties 157 217 +38% Of which Distribution 316 340 +7% Current operating profit 74 92 +24% Margin (as a % of revenue) 8.7% 9.8% +110 bps Working Capital Requirements (WCR) 75 36 *Excluding disposed activities in 2021 (Century 21 and Ægide-Domitys) Revenue from property management activities grew slightly (+1%), with contrasting performances by business line. For the first time, the condominium and rental management businesses reported organic growth in the number of units under management, benefiting from the transformation and customer satisfaction improvement initiatives implemented. Rental activities, on the other hand, were down due to the reduction in the rental offer at national level. Managed Real Estate activities (Serviced properties) continue to grow, particularly in coworking, with a doubling of its revenue. The occupancy rate increased over the period (+11 points) and the managed portfolio surface area was multiplied by almost 2 in 2022 to reach more than 100,000 sq.m. Performance of student residences (Studéa) also improved with an occupancy rate at historic highs (97%, +4 points vs. end December 2021). Revenue from distribution activities was up 7% thanks to an excellent rate of transformation of reservations into notarial deeds, given the 2022 deadline for the Pinel scheme, which will be less favorable for sales signed in 2023. Commercial activity declined by 16%, but nevertheless outperformed the national market for sales to individual investors. Current Operating profit was up 24% to €92 million. The operating margin increased sharply to 9.8%, driven by the performance of the Distribution activities. Outlook Serviced properties activities will continue the profitable growth momentum achieved in 2022, while the Distribution activities will suffer from a less buoyant commercial environment. EXTRA-FINANCIAL PERFORMANCE (ESG) ENVIRONMENT Nexity had its new ambition in terms of climate and biodiversity approved at the May 2022 Shareholders’ Meeting through a "Say on Climate" resolution. In 2023, Nexity is aiming for a 1.5°C certification by SBTi of this new carbon trajectory, which aims to reduce CO2 emissions per square meter delivered by 42% by 2030, which represents a level 10% more ambitious than the French 2020 environmental regulation (RE2020), which is already very stringent in the European context. In 2022, the first year of application of this regulation, Nexity has achieved an average level of performance for building permits filed that is more than 10% better than the requirements of the RE2020. Finally, for the fourth year in a row, Nexity is among the leaders of the BBCA awards for the most committed players in low-carbon building. SOCIAL Nexity is once again certified as a Great Place to Work®. In addition, for the fourth consecutive year, the Group has been included in the 2023 Bloomberg Gender Equality Index, placing Nexity among the 14 French companies recognised in this index. GOVERNANCE Alain Dinin has resigned as Director and Chairman of the Board of Directors effective from 1 January 2023. The Board of Directors has accordingly appointed Véronique Bédague, Chief Executive Officer since 2021, as Chairwoman and Chief Executive Officer, thus completing a succession process initiated in 2018. The Board has given Alain Dinin the title of Honorary Chairman. The reunification of functions around Véronique Bédague will give Nexity the necessary strength, agility and simplicity in making decisions in this phase of market adjustment.
CONSOLIDATED RESULTS – OPERATIONAL REPORTING In view of the process of disposing of the Residential Real Estate development activities in Poland and Portugal, and as the sale is highly probable within the next twelve months, the Group has applied IFRS 5 (Non-current assets held for sale), which requires the assets and liabilities of these activities to be presented on a separate line in the balance sheet. The income statement has not been restated. in € million 2021
reported Disposed activities and non-recurring items 2021
Restated* 2022 2022/2021 Change Revenue 4,837 211 4,625 4,704 2% Operating profit 528 157 371 367 -1% As a % of revenue 10.9% - 8.0% 7.8% Net financial income/(expense) (87) (13) (75) (65) Income tax (102) (7) (95) (90) Share of profit/(loss) from equity-accounted investments (2) - (2) (7) Net profit 337 137 199 204 Non-controlling interests (12) - (12) (16) Net profit attributable to equity holders of the parent company 325 137 188 188 0% (in euros) Net earnings per share €5.85 €3.38 €3.40 1% *Excluding disposed activities in 2021 (Century 21 and Ægide-Domitys) and goodwill impairment REVENUE 2022 revenue amounted to €4,704 million, up 2% compared to 2021 restated revenue. It included, for €45 million, revenue from the acquisition of the Residential Real Estate development activity (Angelotti), consolidated since 1 November 2022. in € million 2021 2022 Change Development 3,771 3,754 - Residential Real Estate development 3,279 3,385 +3% Commercial Real Estate development 492 380 -23% Services 853 938 +10% Property Management 379 382 +1% Serviced properties 157 217 +38% Distribution 316 340 +7% Other activities 1 - Revenue restated * 4,625 4,704 +2% Revenue from disposed activities 211 - - Revenue reported 4,837 4,704 -3% * Excluding disposed activities in 2021 (Century 21 and Ægide-Domitys). Under IFRS, reported revenue was €4,352 million. It excludes revenue from joint ventures in application of IFRS 11, which requires their recognition by equity accounting of proportionally integrated joint ventures in operational reporting. Reported revenue in 2021 (€4,468 million) is not comparable as it included the revenue of the disposed activities in 2021 (Century 21 and Ægide-Domitys) for €211 million. As a reminder, revenue generated by the development businesses from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of all inventoriable costs.
OPERATING PROFIT At the end of December 2022, Current operating profit was €367 million and the operating margin rate was 7.8% of revenue. All the Group's businesses have improved their margin rate in 2022. In 2021, the result of Other activities took into account a profit of €20 million on the result of a major development operation carried out by Villes & Projets. Adjusted for this base effect, income from Other Activities is stable in 2022 compared with 2021. 2021 2022 in € million Operating profit Margin rate Operating profit Margin rate Development 330 8.7% 328 8.7% Residential Real Estate development 271 8.3% 283 8.4% Commercial Real Estate development 59 11.9% 45 11.9% Services 74 8.7% 92 9.8% Other activities (33) ns (54) ns Current operating profit* 371 8.0% 367 7.8% Non-recurring operating profit 157 - Operating profit reported 528 367 7.8% *Excluding disposed activities in 2021 (Century 21 and Ægide-Domitys) and goodwill impairment OTHER INCOME STATEMENT ITEMS Financial expense improved by almost €10 million compared with the end of 2021 on a restated basis (-€65 million in 2022 compared with -€75 million). This improvement is due in particular to the reduction in interest expense, given the repayment in 2021 of high-cost debt. Tax expense (including the CVAE, the French tax on added value of companies) amounted to -€90 million. The current effective tax rate (excluding the CVAE) was 28% at the end of December 2022 (compared with 31% in 2021) following the reduction in the standard tax rate for large companies in France. Net profit Group's share was stable at €188 million at 31 December 2022 and earnings per share were €3.40.
BALANCE SHEET AND CASH FLOW ITEMS BALANCE SHEET AND FINANCIAL STRUCTURE Consolidated shareholders' equity (attributable to equity holders of the parent company) amounted to €1,974 million at the end of 2022 (compared with €1,929 million at the end of 2021). The Group's net debt before lease liabilities amounted to €820 million at the end of December 2022, up €222 million compared to 2021, but down from €878 million at the end of June 2022. The control of net debt in the second half of the year, despite the slowdown in business activity, reflects the rigorous management of working capital. The leverage ratio stood at 2.1x EBITDA on 31 December 2022, well below the thresholds of the banking covenants (3.5x). INDEBTEDNESS BREAKDOWN in € million 31 December 2021 31 December 2022 2022/2021 Change Bond issues and others 994 976 (18) Bank debt and commercial papers 768 874 +106 Net cash and cash equivalents (1,163) (1,030) +133 Net financial debt before lease liabilities 598 820 +222 Elimination of IFRS 5 debt reclassification - 28 Net financial debt before lease liabilities and before IFRS 5 598 848 Gross debt consists mainly of fixed-rate debt (53%), limiting the Group's exposure to rising interest rates. On 31 December 2022, the average maturity of debt remained high at 2.3 years, with an average cost of debt stable at 2.2%, given the weight of fixed-rate debt contracted prior to the 2022 rate increase. In February 2023, the Group renewed its corporate credit for a period of 5 years with an extended pool of banks and for an increased amount (€800 million versus €500 million). The Group's financial position is solid, with total cash and cash equivalents of €1 billion, and to date €800 million in confirmed and undrawn credit lines. The increase in net debt over the year is mainly due to the increase in working capital requirement (WCR) excluding tax (+€213 million compared with its level in December 2021). The working capital requirement of the residential real estate activity, which was rising on 30 June 2022, then stabilised in the second half. This moderate increase considers the increase in set-up and construction start-up times. WORKING CAPITAL REQUIREMENT in € million 31 December 2021 30 June 2022 31 December 2022 Dec. 22/Dec. 21 Change Development 1,053 1,215 1,289 +236 Residential Real Estate development 1,029 1,152 1,166 +137 Commercial Real Estate development 24 64 123 +99 Services 75 52 36 (39) Other Activities (7) 46 10 +17 Total WCR excluding tax 1,121 1,313 1,335 +213 Corporate income tax (2) 5 (11) (8) Working capital requirement (WCR) 1,119 1,318 1,324 +205 Land commitments considered as Landbank totalled around €280 million at 31 December 2022 (stable compared to 31 December 2021 but including acquisitions for around €100 million and building authorisations for the same amount. Lease liabilities rose by €154 million in 2022, to reach €779 million, reflecting the growth in the number of managed coworking office spaces. Net debt including lease liabilities amounted to €1,599 million at end-December 2022. On 31 December 2022, Nexity complies with all its contractual commitments under its bond and corporate loans. CASH FLOWS Cash flow from operating activities after lease payments but before interest and tax expenses was €405 million at end December 2022, close to Group’s EBITDA of €415 million. Nexity’s free cash-flow was close to zero at end December 2022 in relation to the WCR increase booked during the first half of the year. The change in the working capital requirement before tax in the balance sheet (€213 million) differs from the change in the cash flow statement (+€248 million) due to changes in the scope of consolidation (external growth and IFRS 5 reclassification). in € million 2021 2022 Cash flow from operating activities before interest and tax expenses 541 538 Repayment of lease liabilities (183) (133) Cash flow from operating activities after lease payments but before interest and tax expenses 358 405 Change in operating working capital (405) (248) Interest and tax paid (118) (92) Net cash from/(used in) operating activities (165) 65 Net cash from/(used in) operating investments (53) (69) Free cash-flow (219) (4) Net cash from/(used in) financial investments 191 (28) IFRS 5 reclassification - (45) Dividends paid by Nexity SA (111) (138) Net cash from/(used in) financing activities, excluding dividends (51) 13 Change in cash and cash equivalents (189) (202) Net cash flow from/(used in) financing activities totalled -€28 million at end 2022 et mainly include the acquisition of 55% of the Angelotti group for €76 million euros net of the cash acquired. In 2021, they included the proceeds from the sale of 100% of Century 21 and 45% of Ægide. 2023 OUTLOOK Dividend Nexity's Board of Directors will propose to the Shareholders' Meeting to be held on 16 May 2023 the distribution of a dividend of €2.50 per share, paid in cash, for the 2022 financial year. This dividend is stable compared with 2021, reflecting the good financial performance of 2022 at the same level as last year. This dividend reflects the confidence of Nexity's Board of Directors in the Group's outlook and in the strength of its financial position. If approved, the payment will be detached from the share on Wednesday 24 May 2023 and will be payable on Friday 26 May 2023. 2023 targets: a transitional year Nexity's business activity will take into account a slowdown in demand pending a stabilisation of interest rates and the borrowing cost. Thanks to the backlog and the recurring nature of the Services activities, Nexity is aiming for 2023 revenue above €4.5 billion, stable compared with 2022 excluding international activities, and operating profit above €300 million, reflecting both an adjustment phase in the new home market and a portfolio refocused on France. ***
FINANCIAL CALENDAR & PRACTICAL INFORMATIONS Q1 2023 business activity and revenue Wednesday 26 April 2023 (after market close) Shareholders’ Meeting Tuesday 16 May 2023 2023 Half-Year results Wednesday 26 July 2023 (after market close) Q3 2023 business activity and revenue Wednesday 25 October 2023 (after market close) A conference call will be held today in French with a simultaneous translation into English at 6.30 p.m. (Paris Time), available on the website https://nexity.group/en/ in the Finance section and with the following numbers:- Calling from France
- Outlook: a transitional year
+33 (0) 1 70 37 71 66
- Calling from elsewhere in Europe
+44 (0) 33 0551 0200
- Calling from the United States
+1 786 697 3501
Code: Nexity EN
The presentation accompanying this conference will be available on the Group’s website from 6:15 p.m. (Paris Time) and may be viewed at the following address: webcast Nexity FY 2022
The conference call will be available on replay at https://nexity.group/en/finance from the following day.
Disclaimer: The information, assumptions and estimates that the Company could reasonably use to determine its targets are subject to change or modification, notably due to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks described in Section 2 of the Universal Registration Document filed with the AMF under number D.22-0248 on 6 April 2022, could have an impact on the Group’s operations and the Company’s ability to achieve its targets. Accordingly, the Company cannot give any assurance as to whether it will achieve its stated targets and makes no commitment or undertaking to update or otherwise revise this information.
Contacts:
Domitille Vielle – Head of Investor relations / +33 (0)6 03 86 05 02 - investorrelations@nexity.fr
Géraldine Bop – Deputy head of Investor relations / +33 (0)6 23 15 40 56 - investorrelations@nexity.frANNEX: OPERATIONAL REPORTING
Quarterly reservations – Residential Real Estate
2020 2021 2022 Number of units Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 New homes (France) 3,450 5,402 3,848 7,299 3,508 4,843 4,092 7,658 3,490 4,149 3,807 6,569 Reservations carried out directly by Ægide 207 392 336 143 389 348 - - - - - - Total new homes (France) 3,657 5,794 4,184 7,442 3,897 5,191 4,092 7,658 3,490 4,149 3,807 6,569 Subdivisions 360 297 244 660 338 439 367 772 337 423 219 558 Total number of reservations France 4,017 6,091 4,428 8,102 4,235 5,630 4,459 8,430 3,827 4,572 4,026 7,127 International 165 74 193 503 249 404 247 216 133 100 242 174 Total number of reservations Group 4,182 6,165 4,621 8,605 4,484 6,034 4,706 8,646 3,960 4,672 4,268 7,301 2020 2021 2022 Value, in €m incl. VAT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 New homes (France) 750 1,141 855 1,534 792 1,056 845 1,447 764 992 805 1,363 Reservations carried out directly by Ægide 41 90 70 32 90 85 - - - - - - Total new homes (France) 792 1,231 925 1,566 882 1,141 845 1,447 764 992 805 1,363 Subdivisions 30 25 19 57 29 42 33 55 27 37 18 53 Total reservations France 822 1,257 945 1,623 911 1,183 878 1,502 790 1,029 824 1,416 International 26 11 29 91 41 72 48 31 18 2 56 22 Total reservations Group 847 1,267 974 1,713 952 1,255 927 1,533 808 1,032 880 1,438
Cumulated reservations – Residential real estate2020 2021 2022 Number of units Q1 H1 9M FY Q1 H1 9M FY Q1 H1 9M FY New homes (France) 3,450 8,852 12,700 19,999 3,508 8,351 12,443 20,101 3,490 7,639 11,446 18,015 Reservations carried out directly by Ægide 207 599 935 1,078 389 737 737 737 - - - - Total new homes (France) 3,657 9,451 13,635 21,077 3,897 9,088 13,180 20,838 3,490 7,639 11,446 18,015 Subdivisions 360 657 901 1,561 338 777 1,144 1,916 337 760 979 1,537 Total number of reservations France 4,017 10,108 14,536 22,638 4,235 9,865 14,324 22,754 3,827 8,399 12,425 19,552 International 165 239 432 935 249 653 900 1,116 133 233 475 649 Total number of reservations Group 4,182 10,347 14,968 23,573 4,484 10,518 15,224 23,870 3,960 8,632 12,900 20,201 2020 2021 2022 Value, in €m incl. VAT Q1 H1 9M FY Q1 H1 9M FY Q1 H1 9M FY New homes (France) 750 1,892 2,747 4,281 792 1,848 2,693 4,140 764 1,756 2,561 3,924 Reservations carried out directly by Ægide 41 131 201 233 90 175 175 175 - - - - Total new homes (France) 792 2,023 2,948 4,515 882 2,023 2,868 4,315 764 1,756 2,561 3,924 Subdivisions 30 55 74 131 29 71 104 159 27 64 82 135 Total reservations France 822 2,078 3,023 4,646 911 2,094 2,972 4,474 790 1,819 2,643 4,059 International 26 36 65 156 41 113 161 192 18 20 77 99 Total reservations Group 847 2,115 3,088 4,802 952 2,207 3,133 4,666 808 1,840 2,720 4,158 Breakdown of new home reservations in France by client
In number of units 2021 restated* 2022 Homebuyers 3,355 17% 2,605 14% o/w: - First time buyers 2,863 14% 2,217 12% - Other home buyers 492 2% 388 2% Individual investors 7,523 37% 5,703 32% Professional landlords 9,223 46% 9,707 54% o/w : - Institutional investors 3,149 16% 3,131 17% - Social housing operators 6,074 30% 6,576 37% Total 20,101 100% 18,015 100% o/w reservations made through external growth (Angelotti 2 months) - - 356 N/A * Figures restated from reservations carried out directly by Ægide-Domitys.
ServicesDecember 2021 December 2022 Change Property Management Portfolio of managed housing - Condominium management 672,000 680,000 +1% - Rental management 155,000 160,000 +3% Commercial real estate - Assets under management (in millions of sq.m) 20.4 20.0 -2% Serviced properties Student residences - Number of residences in operation 129 131 +2 - Rolling 12-month occupancy rate 93% 97% +4 pts Shared office space - Managed areas (in sq.m) 57,000 110,000 x1,9 - Rolling 12-month occupancy rate 74% 85% +11 pts Distribution - Total reservations 4,983 4,205 -16% - o/w reservations on behalf of third parties 3,208 2,664 -17% Backlog
2020 2021 2022 in €m excl. VAT Q1 H1 9M FY Q1 H1 9M FY Q1 H1 9M FY Residential Real Estate development France 4,375 4,841 4,944 5,235 5,183 5,200 5,279 5,236 5,230 5,219 5,168 5,321 Operations carried out directly by Ægide 274 300 298 280 242 , , , , Commercial Real Estate development 398 373 321 1,032 1,138 1,059 1,013 974 935 906 827 779 Total France 5,047 5,513 5,563 6,547 6,562 6,259 6,291 6,210 6,165 6,125 5,995 6,100 Residential Real Estate development International 147 146 156 274 216 304 331 329 320 322 343 237 Total Group 5,194 5,659 5,719 6,820 6,778 6,563 6,622 6,538 6,485 6,447 6,338 6,338 o/w external growth Angelotti 163
Revenue – Quarterly figures2020 2021 2022 in € million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Development 524 680 703 1,747 851 827 815 1,279 699 839 775 1,454 Residential Real Estate development 467 434 642 1,216 655 742 735 1,146 626 750 686 1,323 Commmercial Real Estate development 57 247 61 530 195 85 79 133 72 89 89 131 Services 171 161 198 237 176 209 198 270 196 226 215 301 Property Management 91 84 99 95 91 94 100 94 92 96 98 96 Serviced properties 35 30 35 34 35 35 40 47 49 53 53 62 Distribution 45 47 65 108 50 80 58 129 54 77 64 144 Other activities - - - - 1 - - - 1 4 1 (5) Revenue restated* 695 842 901 1,983 1,027 1,036 1,013 1,550 895 1,069 991 1,750 Revenue from disposed activities 92 88 120 134 104 107 - - - - - - Revenue 787 929 1,021 2,118 1,132 1,143 1,013 1,550 895 1,069 991 1,750 o/w Residential real estate development external growth (Angelotti) - - - - - - - - - - - 45 * Excluding disposed activities in 2021 (Century 21 and Ægide-Domitys)
Revenue – Half-Year figures2020 2021 2022 in € million H1 H2 FY H1 H2 FY H1 H2 FY Development 1,204 2,449 3,654 1,678 2,094 3,771 1,538 2,228 3,766 Residential Real Estate development 901 1,858 2,759 1,398 1,882 3,279 1,377 2,009 3,385 Commmercial Real Estate development 303 592 895 280 212 492 161 220 380 Services 333 435 767 385 468 853 421 517 938 Property Management 175 194 369 186 194 379 188 194 382 Serviced properties 66 68 134 70 87 157 102 115 217 Distribution 92 172 265 130 186 316 132 208 340 Other activities - - - 1 - 1 5 (5) - Revenue Restated* 1,537 2,884 4,421 2,063 2,562 4,625 1,964 2,740 4,704 Revenue from disposed activities 179 254 434 211 - 211 - - - Revenue 1,716 3,139 4,855 2,275 2,562 4,837 1,964 2,740 4,704 o/w Residential real estate development external growth (Angelotti) - - - - - - - 45 45 - * Excluding disposed activities in 2021 (Century 21 and Ægide-Domitys)
Current Operating Profit – Half-Year figures
2020* 2021 2022 in € million H1 H2 FY H1 H2 FY H1 H2 FY Development 61 213 275 125 205 330 86 243 328 Residential Real Estate development 8 195 203 81 191 271 65 218 283 Commmercial Real Estate development 54 19 72 44 15 59 21 24 45 Services 14 27 41 26 48 74 36 56 92 Property Management 3 8 11 11 15 27 12 17 29 Serviced properties 5 4 9 2 7 10 11 8 19 Distribution 6 15 21 12 25 37 13 31 43 Other activities (9) (26) (35) (18) (16) (33) (11) (42) (54) Current Operating Profit** 66 215 281 133 238 371 110 256 367 Profit from disposed activities and goodwill impairment (16) 14 (2) 41 116 157 - - - Operating profit 50 228 279 174 353 528 110 256 367 * 2020 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode
** Excluding disposed activities in 2021 (Century 21 and Ægide-Domitys)
Consolidated income statement - 31 December 2022In € million 31/12/2022
IFRSRestatement
of joint
ventures31/12/2022
Operational
reporting31/12/2021
Restated* Operational
reportingRevenue 4,351.8 352.2 4,703.9 4,625.2 Operating expenses (3,835.7) (4,156.6) (4,156.6) (4,087.3) Dividends received from equity-accounted investments 36.6 (36.6) - - EBITDA 552.7 (5.3) 547.4 537.9 Lease payments (132.8) - (132.8) (126.7) EBITDA after lease payments 419.9 (5.3) 414.6 411.2 Restatement of lease payments 132.8 - 132.8 126.7 Depreciation of right-of-use assets (133.0) - (133.0) (124.8) Depreciation. amortisation and impairment of non-current assets (38.7) - (38.7) (32.4) Net change in provisions 2.5 0.1 2.6 1.6 Share-based payments (11.8) 0.1 (11.8) (11.8) Dividends received from equity-accounted investments (36.6) 36.6 - Current operating profit 335.2 31.5 366.6 370.6 Capital gains on disposal - - - - Operating profit 335.2 31.4 366.6 370.6 Share of net profit from equity-accounted investments 25.7 (25.7) - Operating profit after share of net profit from equity-accounted investments 360.9 5.7 366.6 486.2 Cost of net financial debt (32.1) (3.5) (35.6) (43.4) Other financial income/(expenses) (10.2) (0.6) (10.9) (17.3) Interest expense on lease liabilities (18.3) - (18.3) (14.1) Net financial income/(expense) (60.6) (4.2) (64.7) (74.8) Pre-tax recurring profit 300.3 1.5 301.8 295.8 Income tax (88.8) (1.5) (90.3) (94.5) Share of profit/(loss) from other equity-accounted investments (7.4) - (7.4) (2.0) Consolidated net profit 204.1 0.0 204.1 199.3 Attributable to non-controlling interests 16.3 - 16.3 11.6 Attributable to equity holders of the parent company 187.8 0.0 187.8 187.7 (in euros) Net earnings per share 3.40 3.40 3.38 * Restated from disposed activities in 2021 (Century 21 and Ægide-Domitys) and goodwill impairment.
Simplified consolidated balance-sheet - 31 December 2022
ASSETS
(in € million)31/12/2022
IFRSRestatement
of joint
ventures31/12/2022
Operational
reporting31/12/2021
Operational
reportingGoodwills 1,397.7 - 1,397.7 1,356.5 Other non-current assets 1,004.1 0.2 1,004.3 817.7 Equity-accounted investments 109.3 (54.1) 55.2 62.5 Total non-current assets 2,511.1 (53.9) 2,457.3 2,236.7 Net WCR 1,073.4 250.3 1,323.7 1,118.9 Assets held for sale 45.0 45.0 Total Assets 3,629.5 196.4 3,826.0 3,355.6 Liabilities and equity
(in € million)31/12/2022
IFRSRestatement
of joint
ventures31/12/2022
Operational
reporting31/12/2021
Operational
reportingShare capital and reserves 1,786.3 - 1,786.3 1,603.6 Net profit for the period 187.8 - 187.8 324.9 Equity attributable to equity holders of the parent company 1,974.1 - 1,974.1 1,928.6 Non-controlling interests 61.6 - 61.6 19.6 Total equity 2,035.7 - 2,035.7 1,948.2 Net debt 1,413.0 185.8 1,598.8 1,223.8 Provisions 97.8 1.8 99.6 104.2 Net deferred tax 83.0 8.9 91.9 79.5 Total Liabilities and equity 3,629.5 196.4 3,826.0 3,355.6 Net debt - 31 December 2022
(in € million)31/12/2022
IFRSRestatement
of joint
ventures31/12/2022
Operational
reporting31/12/2021
Operational
reportingBond issues (incl. accrued interest and arrangement fees) 811.6 - 811.6 806.3 Put options granted to minority interests 164.5 - 164.5 187.8 Bank borrowings and others 782.5 92.7 875.2 767.5 Loans and borrowings 1,758.6 92.7 1,851.4 1,761.6 Other financial receivables and payables (263.4) 197.4 (65.9) 4.7 Cash and cash equivalents (898.0) (166.9) (1,064.9) (1,204.2) Bank overdraft facilities 36.7 62.5 99.2 36.2 Net cash and cash equivalents (861.3) (104.4) (965.7) (1,168.0) Total net financial debt before lease liabilities 633.9 185.8 819.7 598.3 Elimination IFRS 5 reclassification 28.4 28.4 - Total net financial debt before lease liabilities and before IFRS 5 662.3 185.8 848.1 598.3 Lease liabilities 779.0 - 779.0 625.5 Elimination IFRS 5 reclassification - - - - Total lease liabilities before IFRS 5 779.0 - 779.0 625.5 Total net debt 1,413.0 185.8 1,598.8 1,223.8 Total net debt before IFRS 5 1,441.3 185.8 1,627.1 1,223.8 Simplified statement of cash flows - 31 December 2022
(in € million) 31/12/2022
IFRSRestatement
of joint
ventures31/12/2022
Operational
reporting31/12/2021
Operational
reportingConsolidated net profit 204.1 - 204.1 336.5 Elimination of non-cash income and expenses 165.1 25.6 190.7 34.0 Cash flow from operating activities after interest and tax expenses 369.2 25.6 394.8 370.4 Elimination of net interest expense/(income) 50.3 3.5 53.9 70.1 Elimination of tax expense, including deferred tax 87.5 1.5 89.0 100.1 Cash flow from operating activities before interest and tax expenses 507.0 30.7 537.7 540.7 Repayment of lease liabilities (132.8) - (132.8) (182.6) Cash flow from operating activities after lease payments but before interest
and tax expenses374.2 30.7 404.9 - 358.0 Change in operating working capital (186.7) (61.5) (248.2) (405.1) Dividends received from equity-accounted investments 36.6 (36.6) - - Interest paid (21.0) (3.5) (24.4) (36.0) Tax paid (66.8) (2.9) (69.6) (82.2) Net cash from/(used in) operating activities 136.5 (73.8) 62.6 (165.3) Net cash from/(used in) net operating investments (68.8) 0.0 (68.8) (53.4) Free cash flow 67.6 (73.8) ( 6.2) (218.6) Acquisitions of subsidiaries and other changes in scope (21.9) 0.7 (21.3) 211.7 IFRS 5 reclassification (45.4) - (45.4) - Other net financial investments (6.2) (0.1) (6.3) (20.3) Net cash from/(used in) investing activities (73.6) 0.6 (73.0) 191.4 Dividends paid to equity holders of the parent company (138.1) - (138.1) (110.6) Other payments to/(from) minority shareholders (10.0) - (10.0) (48.1) Net disposal/(acquisition) of treasury shares 0.6 0.6 (18.1) Change in financial receivables and payables (net) (27.9) 52.2 24.3 15.4 Net cash from/(used in) financing activities (175.4) 52.2 (123.2) (161.4) Impact of changes in foreign currency exchange rates 0.2 (0.2) 0.0 0.2 Change in cash and cash equivalents (181.1) (21.2) (202.3) (188.5) Capital employed
In € million 31 December 2022 Total
excl. right-of-use assetsTotal
incl. right-of-use assetsNon-current
assetsRight-of-use
assetsWCR Goodwill Development 1,404 1,453 46 49 1,358 - Services 159 795 124 636 35 - Other Activities and not attributable 1,484 1,515 87 31 - 1,398 Group capital employed before IFRS 5 3,047 3,763 256 716 1,393 1,398 IFRS 5 reclassification (74) (74) (5) (69) Group capital employed 2,973 3,689 252 716 1,324 1,398 In € million 31 December 2021 Total
excl. right-of-use assetsTotal
incl. right-of-use assetsNon-current
assetsRight-of-use
assetsWCR Goodwill Development 1,086 1,135 33 49 1,053 - Services 179 678 104 499 75 - Other Activities and not attributable 1,430 1,463 82 33 (9) 1,356 Group capital employed 2,694 3,276 219 582 1,119 1,356 ANNEX: IFRS
Consolidated income statement - 31 December 2022
In € million 31/12/2022
IFRS31/12/2021
IFRSRevenue 4,351.8 4,468.4 Operating expenses (3,835.7) (3,927.8) Dividends received from equity-accounted investments 36.6 22.2 EBITDA 552.7 562.9 Lease payments (132.8) (182.6) EBITDA after lease payments 419.9 380.2 Restatement of lease payments 132.8 182.6 Depreciation of right-of-use assets (133.0) (124.8) Depreciation. amortisation and impairment of non-current assets (38.7) (32.8) Net change in provisions 2.5 2.5 Share-based payments (11.8) (30.4) Dividends received from equity-accounted investments (36.6) (22.2) Current operating profit 335.2 373.4 Capital gains on disposal - 115.6 Operating profit 335.2 489.0 Share of net profit from equity-accounted investments 25.7 31.1 Operating profit after share of net profit from equity-accounted investments 360.9 520.1 Cost of net financial debt (32.1) (42.6) Other financial income/(expenses) (10.2) (16.4) Interest expense on lease liabilities (18.3) (24.5) Net financial income/(expense) (60.6) (83.5) Pre-tax recurring profit 300.3 436.6 Income tax (88.8) (98.1) Share of profit/(loss) from other equity-accounted investments (7.4) (2.0) Consolidated net profit 204.1 336.5 Attributable to non-controlling interests 16.3 11.6 Attributable to equity holders of the parent company 187.8 324.9 (in euros) Net earnings per share 3.40 5.85 Simplified consolidated balance-sheet - 31 December 2022
ASSETS
(in € million)31/12/2022
IFRS31/12/2021
IFRSGoodwills 1,397.7 1,356.5 Other non-current assets 1,004.1 817.6 Equity-accounted investments 109.3 124.9 Total non-current assets 2,511.1 2,299.0 Net WCR 1,073.4 943.8 Assets held for sale 45.0 - Total Assets 3,629.5 3,242.8 Liabilities and equity
(in € million)31/12/2022
IFRS31/12/2021
IFRSShare capital and reserves 1,786.3 1,603.6 Net profit for the period 187.8 324.9 Equity attributable to equity holders of the parent company 1,974.1 1,928.6 Non-controlling interests 61.6 19.6 Total equity 2,035.7 1,948.2 Net debt 1,413.0 1,122.1 Provisions 97.8 102.4 Net deferred tax 83.0 70.2 Total Liabilities and equity 3,629.5 3,242.8 Consolidated net debt - 31 December 2022
(in € million)31/12/2022
IFRS31/12/2021
IFRSBond issues (incl. accrued interest and arrangement fees) 811.6 806.3 Put options granted to minority interests 164,5 187,8 Bank borrowings and others 782,5 865,7 Loans and borrowings 1,758.6 1,672.0 Other financial receivables and payables (263.4) (133.0) Cash and cash equivalents (898.0) (1,061.6) Bank overdraft facilities 36.7 19.2 Net cash and cash equivalents (861.3) (1,042.4) Total net financial debt before lease liabilities 633.9 496.6 Elimination IFRS 5 reclassification 28.4 Total net financial debt before lease liabilities and before IFRS 5 662.3 496.6 Lease liabilities 779.0 625.5 Elimination IFRS 5 reclassification - - Lease liabilities before IFRS 5 779.0 625.5 Total net debt 1,413.0 1,122.1 Total net debt before IFRS 5 1,441.3 1,122.1 Simplified statement of cash flows - 31 December 2022
(in € million) 31/12/2022
IFRS31/12/2021
IFRSConsolidated net profit 204.1 336.5 Elimination of non-cash income and expenses 165.1 2.5 Cash flow from operating activities after interest and tax expenses 369.2 338.9 Elimination of net interest expense/(income) 50.3 67.1 Elimination of tax expense, including deferred tax 87.5 96.5 Cash flow from operating activities before interest and tax expenses 507.0 502.5 Repayment of lease liabilities (132.8) (182.6) Cash flow from operating activities after lease payments but before interest
and tax expenses374.2 319.9 Change in operating working capital (186.7) (318.5) Dividends received from equity-accounted investments 36.6 22.2 Interest paid (21.0) (33.0) Tax paid (66.8) (75.8) Net cash from/(used in) operating activities 136.5 (85.1) Net cash from/(used in) net operating investments (68.8) (53.4) Free cash flow 67.6 (138.5) Acquisitions of subsidiaries and other changes in scope (21.9) 211.9 IFRS 5 restatement (45.4) - Other net financial investments (6.2) (20.9) Net cash from/(used in) investing activities (73.6) 191.1 Dividends paid to equity holders of the parent company (138.1) (110.6) Other payments to/(from) minority shareholders (10.0) (48.1) Net disposal/(acquisition) of treasury shares 0.6 (18.1) Change in financial receivables and payables (net) (27.9) (86.9) Net cash from/(used in) financing activities (175.4) (263.8) Impact of changes in foreign currency exchange rates 0.2 0.2 Change in cash and cash equivalents (181.1) (211.0) ANNEX: ASSETS HELD FOR SALE
IFRS 5 Restatement
In view of the process of disposing of the Residential Real Estate development activities in Poland and Portugal, and as the sale is highly probable within the next twelve months, the Group has applied IFRS 5 (Non-current assets held for sale), which requires the assets and liabilities of these activities to be presented on a separate line in the balance sheet.
Restatements are detailed below:
(in € million) Real Estate development
Poland and Portugal(in € million) Real Estate development
Poland and PortugalAssets Liabilities Other non-current assets 2 Deferred taxes 1 Deferred taxes 3 Non-current assets 5 Non-current liabilities 1 Operating current assets 159 Loans and short-term borrowings 74 Cash and cash equivalents 45 Operating current liabilities 90 Current assets 205 Current liabilities 164 Total assets held for sale 210 Total liabilities held for sale 165 Net assets held for sale 45 GLOSSARY
Business potential: The total volume of potential business at any given moment, expressed as a number of units and/or revenue excluding VAT, within future projects in Residential Real Estate Development (New homes, Subdivisions and International) as well as Commercial Real Estate Development, validated by the Group’s Committee, in all structuring phases, including the projects of the Group’s urban regeneration business (Villes & Projets); this business potential includes the Group’s current supply for sale, its future supply (project phases not yet marketed on purchased land, and projects not yet launched associated with land secured through options)
Current operating profit: Includes all operating profit items with the exception of items resulting from unusual, abnormal and infrequently occurring transactions. In particular, impairment of goodwill is not included in current operating profit
Development backlog (or order book): The Group’s already secured future revenue, expressed in euros, for its real estate development businesses (Residential Real Estate Development and Commercial Real Estate Development). The backlog includes reservations for which notarial deeds of sale have not yet been signed and the portion of revenue remaining to be generated on units for which notarial deeds of sale have already been signed (portion remaining to be built)
EBITDA: Defined by Nexity as equal to current operating profit before depreciation, amortisation and impairment of non-current assets, net changes in provisions, share-based payment expenses and the transfer from inventory of borrowing costs directly attributable to property developments, plus dividends received from equity-accounted investees whose operations are an extension of the Group’s business. Depreciation and amortisation include right-of-use assets calculated in accordance with IFRS 16, together with the impact of neutralising internal margins on disposal of an asset by development companies, followed by take-up of a lease by a Group company.
EBITDA after lease payments: EBITDA net of expenses recorded for lease payments that are restated to reflect the application of IFRS 16 Leases
Free cash flow: Cash generated by operating activities after taking into account tax paid, financial expenses, repayment of lease liabilities, changes in WCR, dividends received from companies accounted for under the equity method and net investments in operating assets
Joint ventures: Entities over whose activities the Group has joint control, established by contractual agreement. Most joint ventures are property developments (Residential Real Estate Development and Commercial Real Estate Development) undertaken with another developer (co-developments)
Land bank: The amount corresponding to acquired land development rights for projects in France carried out before obtaining a building permit or, in some cases, planning permissions
Market share French new home market: corresponds to Nexity’s reservations (retail and bulk sales) compared to French new home reservations (retail and bulk sales) published by the FPI (Fédération des promoteurs Immobilier)
Net profit before non-recurring items: Group share of net profit restated for non-recurring items such as change in fair value adjustments in respect of the ORNANE bond issue and items included in non-current operating profit (disposal of significant operations, any goodwill impairment losses, remeasurement of equity-accounted investments following the assumption of control)
Order intake: Development for Commercial Real Estate: The total of selling prices excluding VAT as stated in definitive agreements for Commercial Real Estate Development projects, expressed in euros for a given period (notarial deeds of sale or development contracts).
Operational reporting: According to IFRS but with joint ventures proportionately consolidated. This presentation is used by management as it better reflects the economic reality of the Group’s business activities
Pipeline: sum of backlog and business potential; could be expressed in months or years of activity (as the backlog and the business potential) based on the last 12 months revenue.
Property Management: Management of residential properties (rentals, brokerage), common areas of apartment buildings (as managing agent on behalf of condominium owners), commercial properties, and services provided to users.
Reservations by value: (or expected revenue from reservations) – Residential Real Estate: The net total of selling prices including VAT as stated in reservation agreements for development projects, expressed in euros for a given period, after deducting all reservations cancelled during the period.
Revenue: revenue generated by the development businesses from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of all inventoriable costs.
Serviced properties: the Group’s business activities in the management and operation of student residences as well as flexible workspaces.
Time-to-market: supply for sale compared to reservations for the last 12 months, expressed in months, for new home reservations segment in France
Attachment
