HEXAOM : 2020 Q1 revenue

Consolidated (€M) unaudited	Q1
2020	2019	% Change
Revenue	195.8	201.1	-2.6%
of which home building	160.9	173.8	-7.4%
of which Renovation	28.9	26.0	+11.2%
of which Other (development & promotion)	6.0	1.3	+361.5%

Revenue of €195.8 million for the first quarter of 2020

For the first quarter of 2020, Hexaom Group revenue amounted to €195.8 million, down 2.6% (-4.9% like-for-like) compared to Q1 2019. After a good start to the year, consistent with 2019 sales performances, the end of the quarter was disrupted by lockdown measures imposed by the government to slow the Covid-19 pandemic:

• The home building business posted revenue of €160.9 million, down 7.4% (-9.0% like-for-like).
• Despite the sharp slowdown in the last two weeks of March, the renovation business posted revenue of €28.9 million, up 11.4%, driven by the growth momentum in both B2B and B2C segments and a strong order book.
• Finally, the real estate and land development business posted revenue of €6.0 million (€4.1 million like-for-like), benefiting from the announced start of the Hibana subsidiary's building projects and the integration of the Plaire Group's real estate and land development business.

From the outset of the health crisis, the group has taken the necessary steps to remain operational in all its business segments, while protecting the health of its employees and adjusting its cost structure to preserve its ability to rebound.

Since the end of April, building sites have been operating at an average of 50% (compared with 15 to 20% at the beginning of the crisis) and this figure should continue to increase as lockdown measures are lifted.

Sales remain resilient

For the home building business, after an 8.50% increase in value in order intake at the end of February (+6.70% like-for-like), the closure of the group's sales offices led to a drop in sales in March, a drop that is nevertheless limited (63% of the target achieved) thanks to the digital tools put in place within the group.

Hexaom achieved 1,503 sales in the first quarter, representing revenue of €188.8 million. Overall, sales in the first quarter contracted by 9.4% in value (13.1% in volume) at current scope and by 10.9% in value (14.9% in volume) on a like-for-like basis. In April, the group should reach 50% of its order intake target.

Sales for the renovation business are up 56.5% to €32.0 million, driven by sustained growth in the B2B segment.

Heavily penalized at the beginning of lockdown, contacts and leads gradually recovered during the month of April to reach 80% of their usual level.

Outlook

The group is actively preparing its return to more normal operations and has drawn up a lockdown exit plan that will be implemented as of May 11th. This plan provides for a series of measures which will enable sales offices and building sites to reopen under good health and safety conditions, while recommending that staff that can work from home continue to do so. Organizational procedures have been adapted and the layout of the offices have been reviewed to enable teams to operate and welcome clients.

Hexaom is approaching this new period with confidence and determination, while remaining cautious on points that could slow down the resumption of activity, in particular the delays the group experienced during the administrative period of building projects (period between the signing of the contract and the start of construction). Indeed, during lockdown, a majority of clients were unable to sign the purchase of their land (digital signatures were unavailable in many notary offices) and the processing of planning permission by local authorities was severely slowed down if not at a halt.

The group's challenges will be to make up for lost time in administrative delays which could impact the start of future building sites and to partly catch up the production delays of April and May during the summer period.

In this difficult period, the family-owned group can rely on its solid fundamentals: a resilient business model supported by experienced managers, motivated employees, a network of committed tradesmen, and a sound financial structure. Thanks to its position as a market leader and its careful and cautious management of the crisis, the Hexaom Group is well placed to emerge from this crisis stronger than before.