• Nexity 2022 half-year results: Resilient first half results

    来源: Nasdaq GlobeNewswire / 27 7月 2022 11:45:00   America/New_York

                                                                                    Paris – France, 27 July 2022, 17h45 CEST

    Resilient first half results
    Cautious management of development activities
    Strong growth of Services
    Annual objectives specified

    Cautious management of residential development: commercial launches postponed

    • Recovery in permits granted, but commercial launches postponed to manage the consequences of inflation and protect margins
    • Anticipation of a 17% market decline in 2022 (estimated at ~130,000 units vs. 157,000 in 2021)
    • Nexity's robustness: 7,639 reservations in the first half (-9% in volume, -5% in value)

    Financial performance: resilience in development activities, strong growth in services, indebtedness under control

    • Revenue of €1,964 million, with service activities up by 9%
    • Current operating profit of €110m, i.e. a half-year margin of 5.6%, not representative of annual performance
    • Solid financial structure: net debt of €878m, i.e. 2.3x EBITDA, highest point of annual debt

    2022 targets specified to better reflect the uncertainty of the macro-economic environment

    • Confirmation of over 14% market share in 2022, in a new home market now expected to decline
    • Maintain a high operating margin around 8% based on revenue at least equal to 2021

    Nexity is well-prepared to address the tremendous needs of the sustainable city

    • Closing of the acquisition of the Angelotti Group, a leading residential developer in Occitanie (south of France), expected at year-end
    • Investor Day on 28 September: accelerating Nexity's integrated real estate operator model for sustainable cities

    H1 2022 KEY FIGURES1

    BUSINESS ACTIVITYFINANCIAL RESULTS
     H1 2022Change(€m)H1 2022H1 202122 vs 21
    New home reservations in France vs. H1 2021Revenue1,9642,063-5%
    Volume7,639 units-9%Operating profit110133-17%
    Value€1,756m-5%Operating margin (% of revenue)5.6%6.4%-80 bps
    Commercial real estate  Net profit – Group share5475-27%
    Order intake€92m     
       (€m)Jun-22Dec-21 
    Development outlook vs. Dec-21Net debt2878598 
    Backlog€6.5bn-1%x EBITDA after leases (12 month)2,3x1,5x 

    1 Data on a like-for-like basis i.e without businesses sold in H1 2021: Century 21 consolidated until 31 March and Ægide-Domitys consolidated until 30 June 2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode 2 Net debt before leases.

    VÉRONIQUE BÉDAGUE, CHIEF EXECUTIVE OFFICER, COMMENTED:

    « The geopolitical and macroeconomic uncertainty leads us to manage our operations with greater caution. To cope with inflationary pressures, we are more selective in launching operations and take the time to work on optimising our products in terms of both cost and selling price. Finally, once the launch has been decided, we capitalise on our diversified offer and our multi-channel marketing capability to ensure optimal time to market. This is how we protect our margins and contain our debt. This tight control of our supply for sale enables us to adapt to changes in demand, which remains strong, both from individuals and institutionals, despite macro-prudential measures aimed at reducing the credit availability to individuals and the rise in interest rates. Nexity's performance demonstrates the strength of its business model, capitalising in particular on its position as France's leading developer and on the very strong growth in the results of its service activities. The volume of our business potential, the strength of our backlog, the solidity of our balance sheet and the quality and commitment of our teams, give us confidence that we will be able to weather this period of uncertainty as well as possible, and we will be able to meet the immense needs in the French housing market. We have also just strengthened our positions in Occitania region (South of France) by acquiring a majority stake in Angelotti and remain in motion to participate in the future consolidation of the sector and better respond to the challenges of sustainable cities. »

    RESIDENTIAL REAL ESTATE 

    Business activity
    The supply shortage, observed for several years on the French market, persists despite a recent recovery in the delivery of building permits for collective housing. The acceleration of the inflationary context recorded in the second quarter lengthens the operations’ set-up time, delays the start of their marketing, thus constraining the supply for sale. The new home market in France is therefore affected despite a still sustained demand, both from individuals and institutional investors. According to the FPI (Fédération des Promoteurs Immobiliers), new home sales fell by around 20% in the first quarter which should continue for the rest of the year.

    Against this backdrop, Nexity's business activity held up well in the first half of the year, with 7,639 reservations (-9% in volume compared with H1 2021, -5% in value to €1.8 billion), with its customer base still balanced between retail sales (63% of reservations in the first half of the year) and bulk sales (37%). Sales prices per square metre in supply constrained areas (A and B1), which account for around 80% of reservations during the period, remain on an upward trend, in line with the first quarter (+3.7% vs H1 2021).

    As expected, Nexity saw during the first half a recovery in building permits (+19% vs H1 2021), but is keen to secure its margins in a more difficult environment. Therefore, these new permits did not allow to increase the supply for sale as anticipated at the beginning of the year, mainly given the negotiation time required to integrate the inflationary trend in construction costs and validate the selling price. As a result, housing launches fell by 12% over the period. The supply for sale therefore remains low (7,199 units against 7,655 on 31 December 2021) and does not meet demand. This supply is low-risk (no stock of completed homes, and more than 70% of the supply not launched) and the time-to-market remains very fast (4.5 months vs. 4.4 months at 31 December 2021).

    New scope (€m)H1 2022H1 20212022/2021
    change
    Revenue1,3771,398- 2%
    Current operating profit6581- 20%
    Margin (as a % of revenue)4.7%5.8%-110 bps
     30/06/2231/12/21 
    Working capital requirement (WCR)1,1521,029 

    Financial results
    Revenue was slightly down in the first half of 2022, reflecting the lower level of new operations starts during the period. The margin rate is down, affected by the cautious management of operations leading to a lower coverage of fixed costs due to operations delay and higher costs related to projects’ exits. Working capital requirement amounted €1.2 billion. Working capital for new homes in France represented 18% of the backlog, in line with historical levels.

    Outlook
    Given the tougher housing environment observed in the second quarter, Nexity now expects the market to decline by 17% in 2022 (~130,000 units vs. 157,000 units in 2021). Nexity is maintaining its target of over 14% market share, with an acceleration in bulk sales expected in the second half of the year. The contribution to 2022 earnings from the acquisition of the Angelotti Group announced in June 2022 should be small, in the event of a year-end closing. The Group remains confident in its ability to contain the pressure on construction costs for ongoing operations. Expectations of rising real estate mortgage rates lead us to increase our vigilance regarding the relevance of new production in relation to market conditions.


    COMMERCIAL REAL ESTATE 

    Business activity
    In a market context at the bottom of the cycle and still wait-and-see, Nexity recorded, as expected, a low level of order intake in the first half of the year (92 million euros at the end of June). This amount includes 66 million euros in order intake in the regions (+41% compared to H1 2021) where Nexity continues to strengthen its presence.

    New scope (€m)H1 2022H1 20212022/2021
    change
    Revenue161280- 43%
    Current operating profit2144- 53%
    Margin (as a % of revenue)13.0%15.8%-280 bps
     30/06/2231/12/21 
    Working capital requirement (WCR)6424 

    Financial results
    H1 2021 basis of comparison is high, as it included the contribution of the order intake for the Reiwa building in Saint-Ouen, which contributed €124 million to revenue and €16 million to operating profit. The half-year results for 2022 are logically down due to this significant base effect. Restated for this item, revenue is up 3%. The margin rate for the first half of 2022 remains higher than the normative level of the business. The level of WCR remains low and takes into account the rate of customer advances collection during the construction period.

    Outlook
    The outlook for Commercial real estate business remains unchanged. Given the wait-and-see attitude of companies, order intake should reach a low point in 2022. The backlog consumption should lead to achieve a consolidated revenue of around €400 million in 2022.

    SERVICES 

    New scope (€m)H1 2022H1 20212022/2021
    change
    Revenue4213859%
    o/w Property Management 1881861%
    o/w Serviced Properties1027045%
    o/w Distribution1321302%
    Current operating profit362639%
    Margin (as a % of revenue)8.5%6.7%+180 bps
     30/06/2231/12/21 
    Working capital requirement (WCR)5275 

    Services revenue amounted 421 million in the first half of 2022, up 9% compared to H1 2021, mainly driven by serviced properties activities, particularly coworking (Morning), which saw its revenue double in H1 2022, driven by the increase in the occupancy rate over the period (+11 points) and the 30% increase in the number of managed spaces (9 openings during H1 representing 19,000 sqm). Student residencies (Studea) had also a strong performance with a3 points increase in occupancy rate at 96% compared to 93% at end-December 2021.

    Current operating profit rose by 39% to €36 million. The operating margin rate increased by 180 basis points to 8.5%.

    Outlook
    In the second half of the year, the Services activities should benefit from the continued good momentum of profitable growth recorded in the first half of the year.

    CONSOLIDATED RESULTS – OPERATIONAL REPORTING

    Reported H1 2021 net profit amounted to €281 million and included non-recurring items relating to the disposal of Ægide-Domitys and Century 21 (€206 million). Restated on a like-for-like basis, H1 2021 net profit amounted to €75 million.

      H1 2021 restated* H1 2022 2022/2021
    change
    Like-for-like basis

    in € million    		 
    Reported    		Disposed activities and non-recurring items
    Like-for-like basis    		    
    Consolidated revenue 2,2752112,063 1,964 -5%
    Operating profit 359226133 110 -17%
    As a % of revenue   6.4% 5.6%  
    Net financial income/(expense)  (44)(13)(31) (26) -18%
    Income tax (31)(7)(24) (24)  
    Share of profit/(loss) from equity-accounted investments (1) (1) (1)  
    Net profit 28320677 59 -23%
    Non-controlling interests (2) (2) (5)  
    Net profit attributable to equity holders of the parent company 28120675 54 -27%
    (in euros)        
    Net earnings per share €5.07 €1.35 €0.98  

    *2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

    REVENUE

    Reported revenue amounted to €1,964 million, down 5% compared to H1 2021 on a like-for-like basis. H1 2021 reported revenue included revenue from disposed activities in 2021 (Century21 and Ægide-Domitys) and amounted to €2,275 million. Restated for the base effect of the Reiwa Commercial real estate order taken in the first half of 2021, revenue rose by 1%.

    in € million H1 2022H1 2021 2022/2021
    change
    Development 1,5381,678 - 8%
    Residential Real Estate Development 1,3771,398 - 2%
    Commercial Real Estate Development 161280 - 43%
    Services 421385 + 9%
    Property Management 188186 + 1%
    Serviced properties 10270 + 45%
    Distribution 132130 + 2%
    Other Activities 51 ns
    Revenue new scope 1,9642,063 - 5%
    Revenue from disposed activities (1)  211  
    Revenue  1,9642,275 - 14%

    (1) Disposed activities were consolidated until 31 March 2021 for Century 21 and until 30 June 2021 for Ægide-Domitys.


    Under IFRS, reported revenue was €1,800 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 H1 2021 (€2,099 millions) is not comparable as it included the revenue of the disposed activities in 2021 (Century21 and Ægide-Domitys).

    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

    Current operating profit amounted to €110 million and the current operating margin reached 5.6% of revenue, at a level not representative of annual performance. Half of the decline in the margin rate (-80 bps) is due to the base effect from the Reiwa Commercial real estate order taken in H1 2O21.

      H1 2022 H1 2021* 
    in € million Operating
    profit    		Margin
    rate    		 Operating
    profit    		Margin
    rate    		 
    Development 865.6% 1257.4% 
    Residential Real Estate Development 654.7% 815.8% 
    Commercial Real Estate Development 2113.0% 4415.8% 
    Services 368.5% 266.7% 
    Other Activities (11)ns (18)ns 
    Current operating profit new scope 1105.6% 1336.4% 

    *2021 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode

    OTHER INCOME STATEMENT ITEMS

    Financial expense amounted to -€26 million in H1 2022 and improved by €5 million compared to 30 June 2021 on a like-for-like basis. The increase in interest expenses on leases (€2 million vs. H1 2021) following the growth in coworking activities is largely offset by the decrease in the cost of financial debt for €7 million. The average cost of financing is down to 1.8% from 2.1% at end 2021. Given its mainly fixed-rate debt structure, the Group has little exposure to an increase in interest rates on the 2022 financial result.

    Tax expense (including the Cotisation sur la Valeur Ajoutée des Entreprises, CVAE) on a like-for-like basis was stable at - €24 million. The current effective tax rate (excluding CVAE) was 27% at end-June 2022 in line with the normative fiscal rate.

    Net profit Group's share on a like-for-like basis during H1 2022 was €54 million (compared to €75 million at 30 June 2021).

    CASH FLOW AND BALANCE SHEET ITEMS

    CASH FLOWS

    Cash flow from operating activities after lease payments but before interest and tax expenses was €125 million at end-June 2022, comparable to the contribution in the first half of 2021.

    Operating working capital (excluding tax) rose by €196 million, which is comparable to the usual increase in the first half of the year, still marked by expenditure flows on construction sites, which exceeds the inflows for the period. The change in WCR in H1 2021, which amounted to €355 million, took into account €238 million related to the consumption of advances paid for Commercial real estate on 2020 orders (mainly the Eco-campus in La Garenne Colombes).

    Nexity’s free cash-flow was a net outflow of €136 million at end-June 2022 compared to a net outflow of €95 million at 30 June 2021 restated for the effect of the consumption of customer advances. This reflects a controlled increase in working capital in H1 2022.

    in € million H1 2022H1 2021*
    Cash flow from operating activities before interest and tax expenses 188233
    Repayment of lease liabilities  (63)(117)
    Cash flow from operating activities after lease payments but before interest and tax expenses 125116
    Change in operating working capital (196)(355)
    Interest and tax paid (36)(71)
    Net cash from/(used in) operating activities (107)(310)
    Net cash from/(used in) operating investments (29)(23)
    Free cash-flow (136)(333)
    Net cash from/(used in) financial investments (7)185
    Dividends paid by Nexity SA (138)(111)
    Net cash from/(used in) financing activities, excluding dividends 22(165)
    Change in cash and cash equivalents (259)(423)

    *2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

    Net cash from/(used in) financial investments totalled €7 million in H1 2022. It mainly included in H1 2021, the disposal of 100% of Century 21 and 45% of Ægide.

    Net cash flow from/(used in) financing activities totalled only €22 million as there were no repayments during the period. In H1 2021, they included the repayment at maturity of a bond.

    WORKING CAPITAL REQUIREMENT

    in € million 30 June 202231 December 20212022/2021
    change
    Development 1,2151,053162
    Residential Real Estate Development  1,1521,029123
    Commercial Real Estate Development  642439
    Services 5275(23)
    Other Activities 46(7)52
    Total WCR excluding tax 1,3131,121192
    Corporate income tax 5(2)7
    Working capital requirement (WCR) 1,3181,119199


    At 30 June 2022, WCR excluding tax increased by €192 million compared to end-December 2021, driven by Residential real estate (+€123 million).

    Land commitments considered as Landbank totalled around €250 million at 30 June 2022 (compared to around €280 million at 31 December 2021).

    BALANCE SHEET AND FINANCIAL STRUCTURE

    The Group’s net debt before lease liabilities amounted to €878 million at end-June 2022, up €280 million compared to end-2021. This increase came in particular from the dividend payment in the first half of the year (€138 million) and the increase in working capital requirement (€192 million).

    The level at end-June represents the highest point in annual indebtedness.

    Leverage ratio was 2.3x EBITDA at 30 June 2022, well below the bank covenant thresholds (3.5x).

    The Group has a solid financial situation as of 30 June 2022, with a total cash position of €914 million, to which are added €600 million of confirmed and undrawn credit lines.

    Gross debt is mainly fixed rate (56%), reducing the Group's exposure to rising interest rates.

    in € million 30 June 202231 December 20212022/2021 change
    Bond issues and others 9999945
    Bank debt and commercial papers 79376826
    Net cash and cash equivalents (914)(1,163)249
    Net financial debt before lease liabilities 878598280

    At 30 June 2022, the average debt maturity was high at 2.6 years (compared to 3.1 years at end-2021) with an average cost of debt down to 1.8% compared to 2.1% in 2021 given the refinancing policy pursued in 2021.

    Lease liabilities rose during H1 2022 by €51 million, to reach €677 million, reflecting the growth in the number of managed coworking office spaces. Net debt including lease liabilities amounted to €1,554 million at 30 June 2022, compared to €1,224 million at 31 December 2021.

    2022 OUTLOOK

    2022 targets specified 1 to better reflect the uncertainty of the macro-economic environment

    • Confirmation of over 14% market share in 2022, in a new home market now expected to decline
    • Maintain a high operating margin around 8% based on revenue at least equal to 2021

    Nexity will continue to closely monitor the current economic, social and health situation.

            

    ACQUISITION OF A MAJORITY STAKE IN THE ANGELOTTI GROUP

    As the regional leader in residential development and urban planning in Occitania region (South of France), this acquisition is a major step forward for Nexity. Fully in line with the Group's strategic ambition, this transaction will strengthen Nexity's urban planning offer, a business that has been in place for a long time and that transforms territories to serve our local authority clients. It will also enable Nexity to strengthen its market share in residential development in Occitania and PACA regions, two regions with strong growth prospects, by relying on reputable and well-established local partners. In 2021, the Angelotti group totalled revenue of €150 million (+20% compared to 2020) and has a pipeline of projects representing around 6 years of activity.

    ***

    FINANCIAL CALENDAR & PRACTICAL INFORMATIONS

    Investor Day (only with invitation)                                Wednesday 28 September 2022
    Q3 2022 business activity and revenue                                Wednesday 26 October 2022 (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
    		+33 (0) 1 70 37 71 66
    • Calling from elsewhere in Europe
    		+44 (0) 33 0551 0200
    • Calling from the United States
    		+1 212 999 6659

    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: Nexity H1 2022 webcast

    The conference call will be available on replay at https://nexity.group/en/finance from the following day.

    The French version of the 2022 interim financial report is filed today with the Autorité des Marchés Financiers (AMF) and is available on the Group’s website.

    Avertissement: 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.

    Contact:
    Domitille Vielle – Head of Investor relations / +33 (0)6 03 86 05 02 – investorrelations@nexity.fr

    ANNEX : OPERATIONAL REPORTING

    Quarterly reservations – Residential Real Estate

      2022 2021 2020
    Number of units Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1
    New homes (France) 4,1493,490 7,6584,0924,8433,508 7,2993,8485,4023,450
    Subdivisions 423337 772367439338 660244297360
    International 100133 216247404249 50319374165
    Total new scope 4,6723,960 8,6464,7065,6864,095 8,4624,2855,7733,975
    Reservations carried out directly by Ægide      348389 143336392207
    Total (in number of units) 4,6723,960 8,6464,7066,0344,484 8,6054,6216,1654,182


      2022 2021 2020 
    Value, in €m incl. VAT Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1 
    New homes (France) 992764 1,4478451,056792 1,5348551,141750 
    Subdivisions 3727 55334229 57192530 
    International 218 31487241 91291126 
    Total new scope 1,032808 1,5339271,170862 1,6829031,177806 
    Reservations carried out directly by Ægide      8590 32709041 
    Total (in €m incl. VAT) 1,032808 1,5339271,255952 1,7139741,267847 

    Breakdown of new home reservations in France by client

    In number of units, new scope H1 2022H1 2021H1 2022/H1 2021
    change
    Homebuyers1,51320%1,77821%-15%
    o/w: - First time buyers1,31717%1,51418%-13%
    - Other home buyers1953%2643%-26%
    Individual investors3,33544%3,68644%-10%
    Professional landlords2,79137%2,88735%-3%
    O/w : - Institutional investors72710%93611%-22%
    - Social housing operators2,06427%1,95123%6%
    Total7,639100%8,351100%-9%


    Services

      June 2022 December 2021 Change  
    Property Management        
    Portfolio of managed housing        
    - Condominium management 675,000 672,000 + 0.4%  
    - Rental management 158,000 155,000 + 1.9%  
    Commercial real estate        
    - Assets under management (in millions of sq.m) 20.2 20.4 - 1%  
    Serviced properties        
    Student residences         
    - Number of residences in operation 129 129 0  
    - Rolling 12-month occupancy rate 96% 93% + 3 pts  
    Shared office space        
    - Managed areas (in sq.m) 76,000 57,000 + 19.000  
    - Rolling 12-month occupancy rate 85% 74% + 11 pts  
    Distribution  June 2022 June 2021 Change  
    - Total reservations 2,425 2,731 - 11%  
    - Reservations on behalf of third parties  1,497 1,770 - 15%  
             

    Quarterly figures - Revenue

     2022 2021 2020

    in € million    		Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1
    Development839699 1,279815827851 1,747703680524
    Residential Real Estate development750626 1,146735742655 1,216642434467
    Commmercial Real Estate development8972 1337985195 5306124757
    Services226195 270198209176 237198161171
    Property management149141 141140129126 129133114126
    Distribution7754 129588050 108654745
    Other activities41    1     
    Revenue - New scope1,069895 1,5491,0131,0361,027 1,983901842695
    Revenue from disposed activities*     107104 1341208892
    Revenue1,069895 1,5491,0131,1431,132 2,1181,021929787

    * Disposed activities are consolidated until 31 Mars 2021 for Century 21 and until 30 June 2021 for Ægide-Domitys

    Backlog

     2022 2021 2020
    In € million, excluding VATH1Q1 FY9MH1Q1 FY9MH1Q1
    Residential Real Estate development5,541 5,551 5,5655,6105,5045,399 5,5095,1004,9864,522
    Commercial Real Estate development906 935 9741,0131,0591,138 1,032321373398
    Total Backlog 6,447 6,485 6,5386,6226,5636,536 6,5415,4215,3594,920
    Restatement of operations carried out directly by Ægide      242 280298300274
    Total Backlog new scope6,447 6,485 6,5386,6226,5636,778 6,8205,7195,6595,194

    Half-year figures
    Reservations – Residential Real Estate

      2022 2021 2020
    Number of units H1 FYH2H1 FYH2H1
    New homes (France) 7,639  20,10111,7508,351 19,99911,1478,852
    Subdivisions 760  1,9161,139777 1,561904657
    International  233 1,116463653 935696239
    Total new scope  8,632 23,13313,3529,781 22,49512,7479,748
    Reservations carried out directly by Ægide -  737-737 1,078479599
    Total (in number of units) 8,632  23,87013,35210,518 23,57313,22610,347


      2022 2021 2020
    Value, in €m incl. VAT H1 FYH2H1 FYH2H1
    New homes (France) 1,756  4,1402,2921,848 4,2812,3891,892
    Subdivisions 64  1598871 1317655
    International 20  19279113 15612036
    Total new scope 1,840  4,4912,4592,032 4,5682,5851,983
    Reservations carried out directly by Ægide   175-175 233102131
    Total (in €m incl. VAT) 1,840  4,6662,4592,207 4,8022,6872,115

    Revenue

      2022 2021 2020

    in € million    		 H1 FYH2H1 FYH2H1
    Development 1,538 3,7712,0941,678 3,6542,4491,204
    Residential Real Estate development 1,377 3,2791,8821,398 2,7591,858901
    Commmercial Real Estate development 161 492212280 895592303
    Services 421 853468385 767435333
    Property management 289 537281256 503263240
    Distribution 132 316186130 26517292
    Other activities 5 1 1    
    Revenue - New scope 1,964 4,6252,5622,063 4,4212,8841,537
    Revenue from disposed activities*   211 211 434254179
    Revenue 1,964 4,8362,5622,275 4,8553,1391,716

    * Disposed activities are consolidated until 31 Mars 2021 for Century 21 and until 30 June 2021 for Ægide-Domitys

    Current operating profit

      2022 2021* 2020*
    In € million H1 FYH2H1 FYH2H1
    Development 86 330205125 27521361
    Residential Real Estate development 65 27119181 2031958
    Commmercial Real Estate development 21 591544 721954
    Services 36 744826 412714
    Property management 23 372314 20128
    Distribution 13 372512 21156
    Other activities (11) (33)(16)(18) (35)(26)(9)
    Current operating profit - New scope 110 371238133 28121566
    Non-current operating profit   15711641 (2)14(16)
    Operating profit 110 528353174 27922850

    *2020 and 2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

    Consolidated income statement - 30 June 2022

    In € million 30/06/2022
    IFRS    		 Restatement
    of joint
    ventures    		30/06/2022
    Operational
    reporting    		 30/06/2021
    Restated*
    Operational
    reporting  
    New scope before non-recurring items
    Revenue 1,800.2  163,51,963.7 2,063.5
    Operating expenses (1,623.6) (1,772.0)(1,772.0) (1,853.4)
    Dividends received from equity-accounted investments 2.2 (2.2)- -
    EBITDA  178.8  12.9 191.7  210.1
    Lease payments (63.5) -(63.5) (60.8)
    EBITDA after lease payments  115.3  12.9 128.2  149.3
    Restatement of lease payments  63.5 - 63.5  60.8
    Depreciation of right-of-use assets (63.0)  0.0(63.0) (59.3)
    Depreciation. amortisation and impairment of non-current assets (16.6) (0.0)(16.6) (15.6)
    Net change in provisions  4.0  0.2 4.1  4.1
    Share-based payments (6.1) -(6.1) (6.3)
    Dividends received from equity-accounted investments (2.2) (0.0)  -
    Current operating profit  94.9  15.2 110.1  133.0
    Capital gains on disposal - -- -
    Operating profit  94.9  15.2 110.1  133.0
    Share of net profit from equity-accounted investments 9.8 (9.8)  -
    Operating profit after share of net profit from equity-accounted investments 104.7  5.4 110.1  133.0
    Cost of net financial debt  (14.1) (1.2)(15.3) (22.8)
    Other financial income/(expenses) (2.0) (0.3)(2.2) (2.4)
    Interest expense on lease liabilities (8.1) -(8.1) (5.9)
    Net financial income/(expense) (24.2) (1.4)(25.6) (31.1)
    Pre-tax recurring profit  80.5  4.0 84.5  101.9
    Income tax (20.5) (4.0)(24.4) (24.2)
    Share of profit/(loss) from other equity-accounted investments (1.0) -(1.0) (0.9)
    Consolidated net profit  59.0  0.0 59.0  76.7
    Attributable to non-controlling interests 4.9 - 4.9 1.9
           -
    Attributable to equity holders of the parent company 54.2  0.0 54.2  74.8
    (in euros)       
    Net earnings per share 0.98  0.98 1.35

    *2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

    Simplified consolidated balance-sheet - 30 June 2022

    ASSETS
    (in € million)    		 30/06/2022
    IFRS    		 Restatement
    of joint
    ventures    		 30/06/2022
    Operational
    reporting    		 31/12/2021
    Operational
    reporting
    Goodwills 1,358.2 - 1,358.2 1,356.5
    Other non-current assets  873.8  0.2 874.1  817.7
    Equity-accounted investments  126.8 (65.3)  61.5  62.5
    Total non-current assets 2,358.8 (65.1) 2,293.7 2,236.7
    Net WCR 1,150.2  168.2 1,318.4 1,118.9
    Total Assets 3,509.0 103.1 3,612.1 3,355.6
             
    Liabilities and equity
    (in € million)    		 30/06/2022
    IFRS    		 Restatement
    of joint
    ventures    		 30/06/2022
    Operational
    reporting    		 31/12/2021
    Operational
    reporting
    Share capital and reserves 1,794.4 (0.0) 1,794.4 1,603.6
    Net profit for the period 54.2  0.0  54.2  324.9
    Equity attributable to equity holders of the parent company 1,848.6 (0.0) 1,848.6 1,928.6
    Non-controlling interests  24.9  0.0  24.9 19.6
    Total equity 1,873.5 (0.0) 1,873.5 1,948.2
    Net debt 1,463.4  91.0 1,554.5 1,223.8
    Provisions  99.0  1.7  100.6 104.2
    Net deferred tax  73.1  10.4  83.5 79.5
    Total Liabilities and equity 3,509.0 103.1 3,612.1 3,355.6

    Net debt - 30 June 2022

     

     

     

    (in € million)    		30/06/2022
    IFRS    		Restatement
    of joint
    ventures    		30/06/2022
    Operational
    reporting    		 31/12/2021
    Operational
    reporting
    Bond issues (incl. accrued interest and arrangement fees)809.7- 809.7  806.3
    Loans and borrowings 904.1 78.2 982.3  955.3
    Loans and borrowings1,713.878.21,792.0 1,761.6
          
    Other financial receivables and payables(163.3) 157.5(5.8)  4.7
          
    Cash and cash equivalents(782.9)(164.8)(947.7) (1,204.2)
    Bank overdraft facilities 19.0 20.2 39.2  36.2
    Net cash and cash equivalents(763.9)(144.6)(908.5) (1,168.0)
          
    Total net financial debt before lease liabilities786.5 91.0 877.6  598.3
          
    Lease liabilities676.9-676.9 625.5
          
    Total net debt1,463.4 91.01,554.5 1,223.8

    Simplified statement of cash flows - 30 June 2022

    (in € million)30/06/2022
    IFRS
    (6-month
    period)    		Restatement
    of joint
    ventures    		30/06/2022
    Operational
    reporting    		 30/06/2021
    Operational
    reporting Restated *
    Consolidated net profit 59.0- 59.0  283.0
    Elimination of non-cash income and expenses72.1 9.6 81.7 (123.5)
    Cash flow from operating activities after interest and tax expenses131.1 9.6 140.8  159.5
    Elimination of net interest expense/(income)22.2 1.2 23.4  41.4
    Elimination of tax expense, including deferred tax20.2 4.0 24.2  31.0
    Cash flow from operating activities before interest and tax expenses173.5 14.8 188.3  231.9
    Repayment of lease liabilities(63.5)-(63.5) (116.7)
    Cash flow from operating activities after lease payments but before interest
    and tax expenses    		110.1 14.8 124.8  115.2
    Change in operating working capital (200.3) 4.4(195.9) (355.2)
    Dividends received from equity-accounted investments2.2(2.2)-- 
    Interest paid (7.7)(1.1)(8.8) (15.5)
    Tax paid (26.2)(1.3)(27.6) (50.9)
    Net cash from/(used in) operating activities(122.0) 14.6(107.4) (306.4)
    Net cash from/(used in) net operating investments(28.9)-(28.9) (22.2)
    Free cash flow(151.0) 14.6(136.4) (328.6)
    Acquisitions of subsidiaries and other changes in scope(2.8)(0.0)(2.9)  208.1
    Other net financial investments(3.7)(0.1)(3.8) (27.4)
    Net cash from/(used in) investing activities(6.5)(0.1)(6.7)  180.7
    Dividends paid to equity holders of the parent company(138.1)-(138.1) (110.6)
    Other payments to/(from) minority shareholders0.2- 0.2 (6.3)
    Net disposal/(acquisition) of treasury shares(1.5) (1.5)  2.0
    Change in financial receivables and payables (net) 18.3 4.5 22.8 (160.8)
    Net cash from/(used in) financing activities(121.2) 4.5(116.6) (275.8)
    Impact of changes in foreign currency exchange rates0.2- 0.2  0.4
    Change in cash and cash equivalents(278.5) 19.0(259.4) (423.3)

    *2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

    Capital employed

    In € million    30 June 2022
      Total
    excl. right-of-use assets    		Total
    incl. right-of-use assets    		 Non-current
    assets    		 Right-of-use
    assets    		 WCR Goodwill
    Development 1,2741,322 59 48 1,215 -
    Services 163715 111 552 52 -
    Other Activities and not attributable 1,4661,492 56 26 51 1,358
    Group capital employed 2,9033,529 226 626 1,318 1,358
                
    In € million    31 December 2021
      Total
    excl. right-of-use assets    		Total
    incl. right-of-use assets    		 Non-current
    assets    		 Right-of-use
    assets    		 WCR Goodwill
    Development 1,0861,135 33 49 1,053  
    Services 179678 104 499 75  
    Other Activities and not attributable 1,4301,463 82 33 (9) 1,356
    Group capital employed 2,6943,276 219 582 1,119 1,356
                

    ANNEX: IFRS

    Consolidated income statement - 30 June 2022

    In € million 30/06/2022
    IFRS    		 30/06/2021
    IFRS Restated*
    Revenue 1,800.2 2,099.0
    Operating expenses (1,623.6) (1,867.1)
    Dividends received from equity-accounted investments 2.2  2.5
    EBITDA  178.8  234.4
    Lease payments (63.5) (116.7)
    EBITDA after lease payments  115.3  117.7
    Restatement of lease payments 63.5 116.7
    Depreciation of right-of-use assets (63.0) (59.4)
    Depreciation. amortisation and impairment of non-current assets (16.6) (16.0)
    Net change in provisions  4.0  4.9
    Share-based payments (6.1) (6.6)
    Dividends received from equity-accounted investments (2.2) (2.5)
    Current operating profit  94.9  154.8
    Capital gains on disposal -  184.7
    Operating profit  94.9  339.5
    Share of net profit from equity-accounted investments 9.8  13.3
    Operating profit after share of net profit from equity-accounted investments 104.7  352.8
    Cost of net financial debt  (14.1) (24.2)
    Other financial income/(expenses) (2.0) (2.0)
    Interest expense on lease liabilities (8.1) (16.3)
    Net financial income/(expense) (24.2) (42.5)
    Pre-tax recurring profit  80.5  310.3
    Income tax (20.5) (26.4)
    Share of profit/(loss) from other equity-accounted investments (1.0) (0.9)
    Consolidated net profit  59.0  283.0
    Attributable to non-controlling interests 4.9  2.1
         
    Attributable to equity holders of the parent company 54.2  280.9
    (in euros)    
    Net earnings per share 0.98 5.07

    *2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

    Simplified consolidated balance-sheet - 30 June 2022

    ASSETS
    (in € million)    		 30/06/2022
    IFRS    		 31/12/2021
    IFRS
    Goodwills 1,358.2 1,356.5
    Other non-current assets  873.8  817.6
    Equity-accounted investments  126.8  124.9
    Total non-current assets 2,358.8 2,299.0
    Net WCR 1,150.2  943.8
    Total Assets 3,509.0 3,242.8
         
    Liabilities and equity
    (in € million)    		 30/06/2022
    IFRS    		 31/12/2021
    IFRS
    Share capital and reserves 1,794.4 1,603.6
    Net profit for the period 54.2  324.9
    Equity attributable to equity holders of the parent company 1,848.6 1,603.6
    Non-controlling interests  24.9  19.6
    Total equity 1,873.5 1,948.2
    Net debt 1,463.4 1,122.1
    Provisions  99.0  102.4
    Net deferred tax  73.1  70.2
    Total Liabilities and equity 3,509.0 3,242.8

    Consolidated net debt - 30 June 2022

     

     

     

    (in € million)    		 30/06/2022
    IFRS    		 31/12/2021
    IFRS
    Bond issues (incl. accrued interest and arrangement fees) 809.7  806.3
    Loans and borrowings   904.1  865.7
    Loans and borrowings 1,713.8 1,672.0
         
    Other financial receivables and payables (163.3) (133.0)
         
    Cash and cash equivalents (782.9) (1,061.6)
    Bank overdraft facilities  19.0  19.2
    Net cash and cash equivalents (763.9) (1,042.4)
         
    Total net financial debt before lease liabilities 786.5  496.6
         
    Lease liabilities 676.9 625.5
         
    Total net debt 1,463.4 1,122.1

    Simplified statement of cash flows - 30 June 2022

    (in € million)30/06/2022
    IFRS    		 30/06/2021
    IFRS Restated*
    Consolidated net profit 59.0  283.0
    Elimination of non-cash income and expenses72.1 (136.8)
    Cash flow from operating activities after interest and tax expenses131.1  146.2
    Elimination of net interest expense/(income)22.2  40.5
    Elimination of tax expense, including deferred tax20.2  26.0
    Cash flow from operating activities before interest and tax expenses173.5  212.7
    Repayment of lease liabilities(63.5) (116.7)
    Cash flow from operating activities after lease payments but before interest
    and tax expenses    		110.1  96.0
    Change in operating working capital (200.3) (333.1)
    Dividends received from equity-accounted investments2.2  2.5
    Interest paid (7.7) (14.7)
    Tax paid (26.2) (45.3)
    Net cash from/(used in) operating activities(122.0) (294.7)
    Net cash from/(used in) net operating investments(28.9) (22.2)
    Free cash flow(151.0) (316.8)
    Acquisitions of subsidiaries and other changes in scope(2.8)  208.2
    Other net financial investments(3.7) (23.5)
    Net cash from/(used in) investing activities(6.5)  184.7
    Dividends paid to equity holders of the parent company(138.1) (110.6)
    Other payments to/(from) minority shareholders0.2 (6.3)
    Net disposal/(acquisition) of treasury shares(1.5)  2.0
    Change in financial receivables and payables (net) 18.3 (176.8)
    Net cash from/(used in) financing activities(121.2) (291.8)
    Impact of changes in foreign currency exchange rates0.2  0.3
    Change in cash and cash equivalents(278.5) (423.5)

    *2021 figures have been restated following the IFRS-IC decision of March 2021 on the costs of software used in Saas mode

    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, amortization 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 amortization 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

    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)

    New scope: Scope of consolidation excluding the contribution of disposed activities (Century 21 and Ægide-Domitys) and capital gains. Disposed activities have been consolidated until 31 March 2021 for Century 21 and until 30 June 2021 for Ægide-Domitys.

    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

    1 Objectives for the full year 2022 communicated last February: a market share of over 14% in a new home market expected to slightly grow (c.150,000 units) and a current operating profit of at least €380 million, enabling the operating margin to be maintained at around 8%.

    Attachment


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