Nexity : Webcast presentation - Q1 2020

Q1 2020 Business activity and revenue

WEBCAST

6 MAY 2020

Disclaimer

The information contained in this document has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither the Company, nor its shareholders, nor their advisors or representatives, nor any other person shall have any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection with this document.

This document does not constitute an offer to sell or an invitation or solicitation of an offer to subscribe for or purchase any securities, and this shall not form the basis for or be used for any such offer or invitation or other contract or engagement in any jurisdiction.

The information, assumptions and estimates that 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 Chapter 2 of the Universal Registration Document filed with the AMF under number D.20-0280 on 9 April 2020, as modified by an amendment filed with the AMF on 28 April 2020, 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;

No assurance is given as to the fairness, accuracy, completeness or correctness of the information or opinions contained in this document.

All financial figures are presented according to IFRS with joint ventures proportionately consolidated.

Nexity / Webcast - 6 May 2020	2

Q1 2020: no significant impact yet from the Covid-19 crisis

Residential Real

Estate

Services to individuals

Commercial Real

Estate

Other KPIs

Revenue

Nexity / Webcast - 6 May 2020

New home reservations in France

• -6%in volume vs Q1 2019
• +2% in value vs Q1 2019

Serviced residences

• Seniors (Domitys): 4 openings (104 residences)
• Students (Studéa): no opening (124 residences)

Order intake not meaningful in Q1

Sale of Hôtel de Région in April (more than €200m)

Backlog: €5.2bn, up 2% vs end-2019

Business potential: €15.3bn

€787m ; -11% vs Q1 2019

(up 4% excl. lockdown impact)

Targets and guidance

suspended

Given the uncertainties about the

economic upturn conditions after the

lockdown

3

Implications of the public-health crisis (COVID-19) on the Group's activities

Development activities (residential + commercial)

• Hard lockdown strongly impact the signing of reservations and notarial deeds of sales. However:
• • Many customer contacts albeit to a lesser extent than normal circumstances
  • Net positive balance of reservations for April (reservations of the period net of cancellations)
  • Potential boost of business activity with the positive action of institutional investors (CDC Habitat and inl'i)
• Activity on construction sites initially stopped but gradually getting underway again: little bit more than 50% opened at 30 April (almost all of them should restart by the beginning of June)
• Renewal of the supply, mixed situation:
• • Elected municipal teams in the 1st round: new administrative authorisations continue but at a slow pace
  • Teams not yet elected: postponement of the 2nd round will delay the building permit grants
  • State of emergency: deadlines for appeals have been extended
• Commercial Real Estate: similar negative impact on business activity. Despite this context, sale in April of Influence 2.0 (Hôtel de Région in Saint-Ouen), achieved with the conditions and within the time table set before the crisis

Nexity / Webcast - 6 May 2020	4

Implications of the public-health crisis (COVID-19) on the Group's activities

Services activities

• Property management for individuals / Franchises / Commercial Property management:
• • Condominium and rental management / Commercial Property management: no significant impact on existing mandates
  • Brokerage activities (lettings and sales by Nexity agencies and Century 21 franchises): virtually at a standstill
• Serviced residences / Shared Office Space:
• • Student residences (Studéa): decrease in occupancy rate. Gradual impact on the revenue until students' courses restart
  • Senior independent living facilities (Domitys): occupancy rate slightly affected. New openings postponed to 2021
  • Morning Coworking: activity virtually at a standstill (workspaces closed since 16 March 2020). Leases remain in effect and are subject to discussion regarding payment procedure

• Distribution: very low volume of business activity

Nexity / Webcast - 6 May 2020	5

Implications of the public-health crisis (COVID-19): change in governance

Jean-Philippe Ruggieri, 51 years old, CEO of Nexity, who passed away as a result of the coronavirus on 23 April 2020, began his career in the family real estate group in Toulouse. He joined Nexity in 2001 and very actively participated in the growth of the Group and notably initiated the development of new service businesses. He saw his responsibilities expanded to become Chief Executive Officer in May 2019.

Governance measures

• To cope with the sudden disappearance of Jean-Philippe Ruggieri, Nexity's Chief Executive Officer on 23 April 2020, the Board of Directors, which met on 25 April 2020, has decided to recombine the functions of Chairman and CEO and has appointed Alain Dinin as Nexity's CEO with immediate effect
• Alain Dinin will be leading the management team, composed of Julien Carmona, confirmed as Deputy CEO and corporate officer, as well as Véronique Bédague-Hamilius and Frederic Verdavaine, Deputy CEOs
• Proposal to the Shareholders' Meeting of 19 May 2020 to align the CEO age limit with the age limit of the Chairman (72 years), i.e. until the end of Alain Dinin's mandate (AGM called to approve the 2022 financial statements)

Nexity / Webcast - 6 May 2020	6

Measures taken to face the public-health crisis (Covid-19)

Operational and financial measures

• State-sponsoredunemployment scheme used on a carefully selected and targeted basis for operating companies where worksites and projects have been forced to shut down
• No use of State aids
• Strict control of expenditures (capex, land acquisitions, opening of new residences…) but Engagement Committees maintained
• Dividend paid in 2020 maintained but reduced to €2.00 per share (€2.00 compared to the €2.70 scheduled initially)
• Company officers' request for a 25% reduction in compensation (for the Chairman and Chief Executive Officer) and to forego any increase (for the Deputy Chief Executive Officer)
• Very strong cash position at 30 April 2020: €722m in cash and €555m in confirmed undrawn borrowing facilities
• Targets and guidance suspended given the uncertainties about the economic upturn conditions after the lockdown

Nexity / Webcast - 6 May 2020	7

Measures taken to face the public-health crisis (Covid-19)

Civic engagement

• Providing at no cost close to 300 units in Studéa student residences for healthcare staff and vulnerable people designated by the public authorities
• Exceptional donation of €3 million in aid of healthcare personnel in the Seine-Saint-Denis and Grand-Est regions, as well as non-profit organisations that help homeless persons and vulnerable women
• Implementation of an emergency fund by the Nexity Foundation for emergency food aid and shelter partly feed with employees' donation of paid holidays

Nexity / Webcast - 6 May 2020	8

Nexity new home reservations in France

(in volume - in units, including Ægide from 1st July 2018)

						19,609		21,837	-6%
				18,351
	11,741	15,893		7,794		compared to Q1 2019
								4,557
									5,603	3,657
									3,883
	2015	2016	2017	2018		2019	2020

(in value - in €m incl.VAT, including Ægide from 1st July 2018)

														4,362
				3,564				3,915
		2,943								1,529	+2%
	2,285																		compared to Q1 2019
																909
																	1,150	792
																	773
	2015	2016	2017				2018			2019	2020
							Q1		Q2			Q3			Q4

Nexity / Webcast - 6 May 2020

INDIVIDUAL CLIENTS

Residential Real Estate

• Total reservations (incl. Subdivisions and International): 4,182 units, stable in volume and +6% in value
• • o/w Subdivisions: 360 units (+40%) worth €30m (+48%)
  • o/w International: 165 units (x4.6) worth €26m (x7.7)

Since 16 March 2020:

Sharp slowdown of activity due to lockdown measures:

• Limited amount of reservations and notarial deeds
• Gradual resumption of work on construction sites: >50% of construction sites opened at 30 April 2020

9

Breakdown by clients

INDIVIDUAL CLIENTS

Residential Real Estate

Volume

(in units)

	-6%
3,883	3,657
14%
9%	19%
	7%
51%	49%
4%	3%
22%	23%
Q1 2019	Q1 2020

Social landlords: +28%
Institutional	Bulk sales : +5%
Investors: -30%

Individual

Investors: -10%

Retail sales: -9%

Other homebuyers: -34%

First-time buyers: -1%

• 50,000 units will be financed by
  CDC Habitat and in'li in one year
  (Annoucement published on 27 March 2020 )
• Firm commitment between CDC Habitat and Nexity at end-Aprilfor
  7,450 units, representing €1,234m excluding VAT (half of these social, intermediate and conventional housing units located all over France are expected to be sold before end-December 2020)

Nexity / Webcast - 6 May 2020	10

Nexity new homes: supply for sale

Current supply for sale
(in units, excl. International and including Ægide from 1 July 2018)					-12%
									8,651	9,005	8,859
										1%	7,799
6,988								6,773			26%	1%
						6,438
2%										27%
					5,058	5,313
52%
		4,202	4,293
	3,663	3,542
											73%	72%
46%
2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	Q1 2020
		New homes in project phase	New homes under construction	Completed new homes

Since 16 March 2020: Limited sales launches, 100% digital

INDIVIDUAL CLIENTS

Residential Real Estate

• Few new sales launches due to the electoral context in Q1 2020
• Take-upperiod* of 4.3 months in Q1 2020 (compared to 4.9 in Q1 2019 and in FY 2019)
• Pre-salesrate: historical level of 90% at end-March 2020
• Completed new homes: 78 units at end-March2020

Nexity / Webcast - 6 May 2020

* Take-up period: available market supply / reservations for the last 12 months, expressed in months	11

INDIVIDUAL CLIENTS

Residential Real Estate

Business potential* for new homes

(in units, excl. International and including Ægide from 1 July 2018)

2.6 YEARS OF POTENTIAL REVENUE

											+2%
										53,602	55,354	56,251
									47,560
								41,813		44%	41%	38%
							34,453
22,824	19,057	21,285	23,143	23,941	23,100	24,832
28%											62%
									56%	59%
72%
2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	Q1 2020

Rest of France

Paris region

• Business potential represents €10.9bn potential revenue excl. VAT at 31 March 2020, or 2.6 years of potential revenue (rolling 12-month basis).
• • 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 (New homes, Subdivisions and International) validated by the Group's Committee, in all structuring phases, 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)

Nexity / Webcast - 6 May 2020	12

INDIVIDUAL CLIENTS

Real Estate Services to Individuals

Property management for individuals and distribution

PMI - Units under management

(in thousand in units)

	2017	2018	2019	Q1 2020
Condominium	721	721	709	709
management
Rental	168	175	175	176
management
	890	897	884	885
* LFL churn in Q1 2020 like for like basis : stable (-1.5% at end-2019)				stable*

Distribution - Total sales

(in units)

	+3%
988	1,022
66	61
922	961
Q1 2019	Q1 2020

iSelection PERL

• More than half of reservations on behalf of third-parties at end-March 2020

Since 16 March 2020:

• Property management for individuals: no significant impact on existing mandates
• Brokerage: virtually at a standstill
• Distribution: very low volume of business activity

Nexity / Webcast - 6 May 2020	13

Serviced Residences

STUDENT RESIDENCES

124 residences and 15,400 managed units at end-March 2020

Q1 2020 rolling 12-month occupancy rate stands at 95.0% (compared to 94.7% at end-December2019)

Since 16 March 2020:

INDIVIDUAL CLIENTS

Real Estate Services to Individuals

SENIOR INDEPENDENT LIVING FACILITIES

104 residences and 12,200 managed units at end-March 2020

4 new residences openings during Q1 2020

Q1 2020 rolling 12-month occupancy rate stands at 84.4%* (compared to 84.2% at end-December 2019)

• Student residences (Studéa): Decrease in occupancy rate. Gradual negative impact on the revenue until students' courses restart
• Senior independent living facilities (Domitys): Occupancy rate slightly affected. New openings postponed to 2021
• • Occupancy rate at end-March 2020 stands at 95% for the 72 residences opened for more than 2 years

Nexity / Webcast - 6 May 2020	14

COMMERCIAL CLIENTS

Commercial Real Estate

Business potential* and order intake

Business potential for Commercial Real Estate	Order intake
at 31 March 2020	(in €m excl. VAT)
(in €m)

		+1%	403		402		521
		356	349
			305
2,796	2,966		2,993
72%	77%		77%				216	3
28%			2015	2016	2017	2018	2019	Q1 2020
23%		23%		Paris Region	Rest of France
2018	2019		Q1 2020

Paris Region

Rest of France

• Strong visibility of more than 8 years of activity
• Sharp acceleration anticipated in revenue starting 2020

• Q1 2020 order intake not significant - The Hôtel de Région project in Saint-Ouen signed in April 2020 for more than €200m (delivered end-2019)
• Backlog** of €398m equivalent to 14 months of activity compared to €456m at end-December2019

Since 16 March 2020:

• Business has slowed significantly due to the extension of deadlines for obtaining building permits and the halting of construction work
• No threat on the sale of the Engie eco-business park in La Garenne-Colombes scheduled for the end of 2020
• • The total volume of potential business at any given moment, expressed as a number of units and/or revenue excluding VAT validated by the Group's Committee, in all structuring phases, including the programmes 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). The number of years is based on the revenue on a rolling 12-month basis

Nexity / Webcast - 6 May 2020

** Commercial Real Estate revenue on a rolling 12-month basis

15

COMMERCIAL CLIENTS

Real Estate services to Companies

Real Estate services to Companies

Property Management

(in millions of sq.m under management)

								-0.4%
	18.6	19.5	19.4
					11.5			11.4
	10.6
	8.0		8.0			8.0
	2018	2019			Q1 2020
			Rental management		Technical management

Morning Coworking

• 21 coworking spaces at end-March 2020
• Signing of the lease of the Hôtel de la Marine (Paris 8ème) during Q1 2020: 645 workstations
• More than 50.000 sq.m (down 15% compared to end-2019)
• 5.700 workstations

Since 16 March 2020:

• Morning Coworking: workspaces closed. Leases remain in effect and are subject to discussion regarding payment procedure
• Property management: very resilient activity

Nexity / Webcast - 6 May 2020	16

Q1 2020 revenue and Covid-19 impact

										Q1 2020		Covid-19
		(in millions of euros)		Q1 2019	Q1 2020	Change			simulated before
						impact
										Covid-19
		Residential Real Estate	552	491	-11%		599	-109
		Covid impact (%)									-18%
		Real Estate services to individuals	209	211	+1%		228	-16
		PMI, franchise network	87	82	-6%		84	-2
		Serviced residences (Studéa, Domitys)	72	84	+17%		84	0
		Distribution activities (PERL, iSelection)	50	46	-9%		60	-14
		Covid impact (%)									-7%
		Individual Clients		762	702	-8%			827		-125
		Commercial Real Estate	98	57	-42%		63	-6
		Covid impact (%)									-10%
		Real Estate services to companies	21	27	+32%		27	0
		Covid impact (%)									0%
		Commercial Clients	119	84	-29%		91	-6
		Other activities	1	0			0
		Nexity Revenue		881	787	-11%		917	-131
		Covid impact (%)										-14%
Nexity / Webcast - 6 May 2020									17

Implications of the public-health crisis (COVID-19): Sensitivity of the income statement

	Negative impact	Negative impact on
	on revenue	EBITDA and margin rate
			• High proportion of variable costs (fixed costs
Development and			represent less than 10% of revenue)
		• Losses on overheads that will not be accounted
Distribution	Important	Limited
as inventories during the lockdown period
activities
		• Increase in construction costs linked to
			construction start conditions
Property
management for			• High proportion of fixed costs
individuals,
		• Measures taken to furlough staff and plans to cut
serviced	Limited	Important
operating expenses should also help limit this
residences and
		impact
shared office space
activities, holding

Nexity / Webcast - 6 May 2020	18

Development business potential* and backlog at 31 March 2020

Development business potential*

Backlog**

	€15.3				+2%
			5,095	5,193
	bn
		4,469	456	398
			308
Residential		Commercial			4,795
Real Estate		Real Estate	4,161	4,640
€12.3bn		€3.0bn
75,700 units
			31 Dec. 2018	31 Dec. 2019	31 March 2020

New homes	Subdivisions	International
€10.9bn	€1.1bn	€0.4bn

Residential Real Estate

Commercial Real Estate

56,250 units

13,950 units

5,500 units

*Corresponds to the total volume of potential business at any given moment (expressed as a number of units and/or estimated revenue excluding VAT) within future Residential Real estate projects (new homes, subdivisions and International) and Commercial Real Estate projects, validated by the Nexity's Investment Committee, under options or purchased land, in all structuring phases, including urban regeneration business (Villes& Projets). This business potential includes the Group's current supply for sale, its future supply corresponding to project phases not yet marketed on purchased land, and projects not yet launched associated with land secured under options

** Corresponds to the Group's order backlog in terms of forecast revenue and number of months of development activities - According to IFRS with joint ventures proportionately consolidated

Nexity / Webcast - 6 May 2020	19

Appendix

INDIVIDUAL CLIENTS

Residential Real Estate

Evolution of new home reservations in France

(in units)

								-1%
						169,000	163,600	162,600
					153,700
121,100				125,400
	105,900	108,500	107,300
2011	2012	2013	2014	2015	2016	2017	2018	2019
			Retail Sales	Bulk sales

A strong demand in an undersupplied market

Sources: Commissariat Général au Développement Durable (Base Sit@del2) for retail sales - Fédération des Promoteurs Immobiliers for bulk sales

Nexity / Webcast - 6 May 2020	21

INDIVIDUAL CLIENTS

Residential Real Estate

Nexity new homes: price trends

Average prices

(in thousand of euros, excl. PERL, iSelection, Ægide, International and bulk sales)

								257.4	261.5	267.3	265.8 Paris region: -0,6%
									256.8	264.8	265.4 Paris region excl. Paris: +0,2%
								250.5
											France: +3,2%
											231.0
									218.0	223.8
								213.6		Rest of France: +5,1%
									206.8
										196.7
									192.0
								184.2
2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
				Retail sales			Q1 2019	Q1 2020	Change
				Average home price incl. VAT (sq.m.)		4,139	4,305	+4.0%
				Average surface area per home (sq.m.)	54.6	56.4	+3.3%
				Average price incl. VAT per home (€k)	225.9	242.7	+7.4%

• Given the low volumes during Q1, these data cannot be extrapolated to the full year

Nexity / Webcast - 6 May 2020	22

COMMERCIAL CLIENTS

Commercial Real Estate

La Garenne-Colombes(Hauts-de-Seine)

	Dec.2019
	Purchase	2020
13 July 2018	commitment signing
Signing of the off-plan
with Swiss Life Asset
Land acquisition
Managers	sale (VEFA)

2019/2020

Building permits preparation

Permissions obtention

Engie: a financial and strategic development partnership

• Acquisition with Engie in July 2018 of a 9-hectares plot of PSA group industrial land in La Garenne-Colombes (92)
• Conclusion of a technological partnership to develop with Engie an ambitious general interest urban project in terms of energy transition
• Complex mixed programme of offices, housing, shops and a hotel, a new PSA branch, and community facilities
• Creation of Engie's eco-business park for 136,000 sq.m, the largest private project in Greater Paris
• A little less than 1 billion euros in turnover for the Nexity share of the eco-campus

2022

2024

20212023/2024

Scheduled delivery of

the Engie campus

No threat on the administrative authorisations obtention (under option since Q4 2019, expected to be sold at the end of 2020)

Nexity / Webcast - 6 May 2020	23

19, rue de Vienne 75 008 Paris

Tél. : [phone]