Nexity : Webcast Presentation - 2019 Results

2019 FULL-YEAR RESULTS

WEBCAST

25 FEBRUARY 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 due notably to economic, financial and competitive uncertainties.

Furthermore, it is possible that some of the risks presented in Section 2 of the Registration Document filed with the AMF under number D.19-0272 on 4 April 2019, could have an impact on the Company's ability to achieve these objectives. Accordingly, the Company cannot give any assurance as to whether it will achieve the objectives described, and makes no commitment or undertaking to update or otherwise revise this information.

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

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

Nexity / 2019 Full-year Results - Webcast 25 February 2020	2

Dynamic business activity

Residential Real

Estate

Services to

Individuals

Commercial Real

Estate

Local Authority

Pipeline

New home reservations in France

• +11% in volume
• +11% in value

Serviced Residences

• Seniors (Domitys): 17 openings (100 residences)
• Students (Studéa): 4 openings (124 residences)

Order intake of €521m

Nexity wins many high-profile calls for proposals

Backlog : +14% i.e. €5.1bn

Business potential: +7% i.e. €15.3bn

2019 guidance(1)

exceeded

Growth in Nexity's market share in a stronger than expected new home market in 2019

(between -2% and -4%(1) compared to 2018)

More than 20 openings of new residences

and rejuvenating 1,000 student housing units

Commercial Real Estate order intake: at

least equal to 2018 (€349m excl. VAT)

Nexity / 2019 Full-year Results - Webcast 25 February 2020

(1) Guidance announced on 19 February 2019 ; upward revision proposed to the Board of Directors on 23 July 2019 : French housing market
estimated between -2% and -4% compared to -7% previously - French new home market MALONE in 2018 at 157,600 units (retail sales from	3
ECLN + bulk sales from Fédération des Promoteurs Immobiliers - FPI)

Financial performance above targets

Revenue

EBITDA

Current operating

profit

Net profit before non

recurring items

Net financial debt

before lease liabilities

WCR

+9% ; €4,499m

+10% ; €573m

-5% ; €353m

-18% ; €163m

€918m (€1,826m incl.

lease liabilities)

€1,019m; stable in % of

backlog

2019 guidance(1)

exceeded

Revenue and EBITDA expected to grow above 7%

Dividend per share proposed at €2.70 in respect of financial year 2019, and at least at the same level for the duration of the plan (compared to €2.50 per share payed in 2019)

MEDIUM-TERM PLAN AT MIDPOINT (2017-2019)

	CAGR +12%
REVENUE	4.1	4.5
In €bn
3.6
2017	2018	2019	2020e	2021e
EBITDA	CAGR +11%
In €m		573
	523
461
Linear
Realised	2018	2019	2020e	2021e
2017

Nexity / 2019 Full-year Results - Webcast 25 February 2020	(1) Outlook partially revised upwards in the 2019 interim results disclosure. See press release of 23 July 2019.	4

A growth track record (2014-2019)

GROUP REVENUE
(€m)	4,499	X1.7
2,632		vs 2014
2014	2019

CURRENT OPERATING PROFIT (€m)

AND MARGIN RATE

7.0%	7.8%	X1.9
	353	vs 2014
184
2014	2019

TSR*

+84%

since 2014

NEW HOME RESERVATIONS

(in volume)

10,365	21,837	X2.1
	vs 2014
2014	2019

SERVICES REVENUE
(€m)		X2.2
	1.065
484		vs 2014
2014	2019

>11,000 EMPLOYEES

Nexity / 2019 Full-year Results - Webcast 25 February 2020	* total shareholder return at 31 December 2019, i.e +13% on average per year	5

16% of 2019 revenue generated by integrated development / services

solutions (€725m)

2019 revenue In €m

• Projects sourced by urban regeneration (Villes & Projets) activities have a 3 to 4 points higher margin level compared to Group level

	725
	45
DEVELOPMENTXX	320	SERVICES
	360
Villes &
Projets
~€250m	2019
on average per year
between 2015 and
2019

							Nexity Solutions Entreprise
		Property management to individuals and Distribution		Management of Serviced Residences		Development of Serviced Residences	Integrated offers
Future growth trend		+15% per year		+10% per year		+/- stable	ongoing

Nexity / 2019 Full-year Results - Webcast 25 February 2020	6

INDIVIDUAL CLIENTS

Residential Real Estate

New home market (MALONE) in France and Nexity's market share

(in units)

							-7%	-2%
						168,600
						157,600
					153,900		~154,000	stable
121,100				125,600
							14.2%
	105,900	108,600	107,500
						10.9%	12.4%
					10.3%
9.4%	9.6%	9.3%	9.6%	9.3%
2011	2012	2013	2014	2015	2016	2017	2018	2019e	2020e

Retail sales		Bulk sales		Market share

Sources at 31 December 2019: Commissariat Général au Développement Durable (Base Sit@del2) for retail sales - Fédération des Promoteurs Immobiliers for bulk sales- Nexity estimations for 2019 and 2020

Nexity / 2019 Full-year Results - Webcast 25 February 2020	7

INDIVIDUAL CLIENTS

Residential Real Estate

Dynamic Nexity Residential Real Estate new home reservations

(in volume - in units, including Ægide from 1st July 2018)	+11%
compared to 2018*

					19,609	21,837
			18,351
	15,893		7,794
		6,600
10,365	11,741
					4,557

+18%

in Q4 2019 vs Q4 2018

																4,757
																					5,603
																		4,634
																		3,618		3,883
		2014	2015	2016						2017		2018	2019
		(in value - in €m incl.VAT, including Ægide from 1st July 2018)
																3,915	4,362
													3,564				1,529
					2,943									1,327
			2,285
		1,924																		909
																922
																					1,150
																			951
																			715		773
		2014	2015	2016						2017		2018	2019
								Q1		Q2		Q3			Q4

+11%

compared to 2018*

+15%

in Q4 2019 vs Q4 2018

• Total reservations: 24,566 units (incl.
  Subdivisions and international): +11% in volume and +13% in value
• • o/w Subdivisions: 2,088 units (+1%) worth €177m (+5%)
  • o/w International: 641 units (x1,8) worth €100m (x3,1)

Nexity / 2019 Full-year Results - Webcast 25 February 2020

* +8% by volume and by value on a like-for-like basis

8

Client mix

Volume

(in units, including Ægide from 1 July 2018)

		21,837
18,351	19,609	23%
24%	23%
	13%
9%	13%
44%	42%	45%
5%	4%	3%
17%	18%	17%
2017	2018	2019

Social landlords: +9%

	Bulk sales: +11%
Institutional	(LFL: +9%)
Investors: +13%

Individual

Investors: +19%

Retail sales: +12%

(LFL: +5%)

Other homebuyers : -28%

First-time buyers: +5%

INDIVIDUAL CLIENTS

Residential Real Estate

• Individual Investors: 45% of total sales, up 19% compared to 2018 (o/w 55% using Pinel scheme)
• Strong growth of serviced residences: up 53% compared to 2018 and representing
  29% of total sales

Nexity / 2019 Full-year Results - Webcast 25 February 2020	9

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

											231.0	France: +3.2%
									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 slaes			2018	2019	Change
				Average home price incl. VAT (sq.m.)		4,045	4,223	+4.4%
				Average surface area per home (sq.m.)	55.3	54.7	-1.1%
				Average price incl. VAT per home (€k)	223.8	231.0	+3.2%

• Decrease in average surface area mainly linked to the increase of sales to individual investors (up 19%)

Nexity / 2019 Full-year Results - Webcast 25 February 2020	10

INDIVIDUAL CLIENTS

Residential Real Estate

Nexity new homes: supply for sale

Curent supply for sale

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

										-2%
									8,651	9,005	8,859
									2%	1%
6,988								6,773		31%	26%
						6,438
2%
					5,058	5,313
52%
		4,202	4,293
	3,663	3,542
										67%	73%
46%
2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019

• Take-upperiod * of 4.9 months in 2019 (compared to 5.5 in 2018)
• Completed new homes: 104 units at end-2019
• Pre-salesrate: 73% at end-2019(compared to 69% at end-2018)

New homes project phase

New homes under construction

Completed new homes

Nexity / 2019 Full-year Results - Webcast 25 February 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)	2.5 YEARS OF BUSINESS ACTIVITY

											+3%
										53,602	55,354
									47,560
								41,813		44%		41%
							34,453
22,824	19,057	21,285	23,143	23,941	23,100	24,832
28%
											59%
										56%
72%
2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018		2019

Rest of France

Paris region

• Business potential represents €10.6bn in potential revenue excl. VAT at 31 December 2019, or 3.7 years of potential revenue (rolling 12-month basis)

	* 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
Nexity / 2019 Full-year Results - Webcast 25 February 2020	(new homes, subdivisions and International), validated by the Nexity's Investment Committee, under options or purchased land, in all structuring phases. This business potential includes the Group's	12
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

Serviced Residences

STUDENT RESIDENCES

124 residences and 15,400 managed units at end-2019

4 openings in 2019 in Villeneuve d'Ascq (Nord), Amiens (Somme), Toulouse (Haute-Garonne) et Malakoff (Hauts-de- Seine)

2 closings of residences during 2019 in Nice (Alpes-Maritimes) and Toulon (Var)

Rolling 12-month occupancy rate stands at 94.7% at end- 2019 (compared to 92.9% at end-2018)

INDIVIDUAL CLIENTS

Services to individuals

SENIOR INDEPENDENT LIVING FACILITIES

100 residences and 11,700 managed units at end-2019

17 openings in 2019

Rolling 12-month occupancy rate stands at 84,2% at end-2019 (compared to 82.5% at end-2018)

End-December 2019 average occupancy rate stands at 95% for the 58 residences opened more than 2 years ago (stable compared to end- December 2018)

• 21 openings in 2019 (above the target of more than 20 openings)

Nexity / 2019 Full-year Results - Webcast 25 February 2020

2019 target
met	13

Senior Serviced Residences

Growth in the number of residences	~200

							83	100
						72	42
					59
				52		32					~70%
			41
		36
	25
15						51	58
2011	2012	2013	2014	2015	2016	2017	2018	2019	2020e	2021e	2022e	2023e	2024e

Residences opened more than 2 years ago Residences opened less than 2 years ago

INDIVIDUAL CLIENTS

Services to individuals

Recurring result generation during the lease almost equal to the real estate development margin**

• current operating profit generated during the management phase (rent + condominium management + other services) - In €m

1.8

1.6

N N+1 N+2 N+3 N+4 N+5 N+6 N+7 N+8 N+9 N+10 N+11 N+12 N+… N+… N+…

Revenue, EBITDA and current operating profit breakdown by residences' maturity

	Number of	Average			Current
In €m	occupancy	Revenue	EBITDA	operating
residences
	rate			profit
Residences opened more than 2 years ago*	58	95%	140	52	7
Residences opened less than 2 years ago* and International	42	72%	81	21	-16
Total Serviced residences		84%	221	73	-9

• Domitys France

• 5% operating margin for residences opened more than 2 years ago
• Operating margin growth expected, up to 7% of revenue

Change in average monthly revenue per resident

	2019	2018	Change
Rent	€732	€708	+3%
Services	€951	€878	+8%
Total	€1.683	€1.586	+6%

Nexity / 2019 Full-year Results - Webcast 25 February 2020

** Indicative figures based on a development margin rate of 10% and an average operation of 120 units	14

INDIVIDUAL CLIENTS

Services to individuals

Property management for individuals and Distribution

PMI - Units under management	Distribution - Total reservations
(in thousands of units)	(in units)

								+9%
	2016	2017	2018	2019	4,163	4,514	4,293	4,670
	924	759
					919	701
Condominium	726	721	721	709
management
Rental	172	168	175	175		3,590	3,592	3,911
management					3,244
	898	890	897	884
				-1.4%*	2016	2017	2018	2019
* LFL churn in 2019: -1.5% (-1.4% at end-2018)
					iSelection	PERL

Century 21

• 898 agencies in 2019 (up 4% compared to 2018)

• 2.528 reservations on behalf of third-parties at end-2019, up 4% compared to end-2018

Nexity / 2019 Full-year Results - Webcast 25 February 2020	15

COMMERCIAL CLIENTS

Commercial Real Estate

Order intake and backlog

Order intake					Backlog
(in €m excl. VAT)					(en M€)
						+48%
					521		+521	-384
	403		402
	356	349	305	2019 target*			+11
					met
190			250	166					456
						308
			151	183	216
2014	2015	2016	2017	2018	2019	31 Dec.	2019 Order	2019 Revenue	Additional	31 Dec.
		Paris region	Rest of France	2018	intake		works & Others	2019

▪	€181m signed on wood-frame projects	▪ Backlog of €456m equivalent to 14 months of activity
▪	Recurring activity in the rest of France	(Commercial Real Estate revenue on a rolling 12-month basis),
compared to €308m at end-December 2018

*Guidance 2019 : order intake volume in Commercial Real Estate at least equal to 2018 (€349m excl. VAT)

Nexity / 2019 Full-year Results - Webcast 25 February 2020	16

COMMERCIAL CLIENTS

Commercial Real Estate

La Garenne-Colombes(Hauts-de-Seine)

	Dec.2019
	Purchase
13 July 2018	commitment signing
with Swiss Life Asset
Land acquisition
Managers

2019/2020

2020

Scheduled signing of

the off-plan sale (VEFA)

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
• Just under € 1 billion in revenue for Nexity's share in the eco-business park

2022

2024

20212023/2024

Building permits preparation

Permissions obtention

Scheduled delivery of

the Engie campus

Nexity / 2019 Full-year Results - Webcast 25 February 2020	17

COMMERCIAL CLIENTS

Real Estate Services to Companies

Real Estate services to Companies

1,2

MANAGEMENT
PROPERTY MANAGEMENT	+46%
1,2 millions

• Commercial Real Estate advisory
• Space planning

~15 operators with units under management above 2 million sq.m* Nexity #1 in property management in 2019*

Property Management key figures

20 million sq.m under management at end-2019 (up 5% compared to end-2018)

Of which 1 million sq.m for Accessite (Retail premises)

New service offering

Revenue: €62m in 2019, up 13% LFL compared to 2018

OPERATION

COMPLETE OFFERING

1,700 spaces in France, of which 35% in the Paris region and 23% inside Paris* Nexity one of the leaders in the Paris region in 2019*

Morning Coworking key figures

22 coworking spaces at end-December 2019

More than 60,000 sq.m (up 35% compared to end-2018)

6,700 workstations

Revenue: x6 compared to 2016 (€30m in 2019)

Nexity / 2019 Full-year Results - Webcast 25 February 2020	* Source: Xerfi : le marché du property management à l'horizon à 2022 / July 2019 ; Bureauxàpartager.com, « Indice du coworking » 2019	18

2019 P&L statement

	In million of euros		FY 2019	FY 2018
	Revenue		4,498.8	4,135.0
	EBITDA		572.9	523.0
	% of revenue		12 .7%	12 .6%
	Current operating profit		572.9	572.9
	% of revenue		12 .7%	13 .9 %
	Remeasurement of Ægide -Domitys following acquisition of control	-	79.2
	Operating profit		353.2	451.9
	Net financial income / (expense)	(78.2)	(51.7)
	Fair value adjustment of the ORNANE bond issue	(2.0)
	Income tax		(103.6)	(113.1)
	Share of profit/(loss) from equity-accounted investments	0.0	(4.7)
	Net profit		169.4	282.4
	Non-controlling interests		(8.7)	(5.5)
	Net profit attributable to equity holders of the parent company	160.7	276.9
	Non-recurring items*		(2.0)	79.2
	Net profit attributable to equity holders of the parent company before non-recurring items	162.7	197.7
	In euros
	Net earnings per share**		2.90	4.95
	Net earnings per share* before non-recurring items	2.92	3.53
Nexity / 2019 Full-year Results - Webcast 25 February 2020	* Of which €2m change in fair value of the ORNANE bond issue
** Based on average number of shares outstanding over the period

+9%

+10%

-5%

-42%-18%

-17%

19

2019 Revenue

Development

(in M€)

Total

+13%

4,014

3,550

-17%

581

+9%

4,499

4,135

+15%
	3,049
2,648
2018	2019

Residential Real Estate

LFL: +12%

-25%
512
	384
2018	2019

Commercial Real Estate

	+9%
	3,433
3,160
2018	2019

Total Development

2018

2019

	484
2018	2019

2018

2019

Services

+7%

965

902

+45%

+10%

1,065

970

Individual Clients

Commercial Clients

* o/w Other activities: €0.9m in 2019 and €4.3m in 2018

Group*

2018

2019

69	99
2018	2019

• €4,279m on a like-for-like basis (+4%)

Nexity / 2019 Full-year Results - Webcast 25 February 2020

Services to individuals

LFL: -3%

Services to companies

LFL: +12%

Total Services

20

EBITDA and margin rates in 2019

(in €m and in %)

Development

-1%

Total
+13%
	540
477	(13.4%)

+10%
523	573
(12.7%)
(12.6%)

(13.4%)
2018	2019

Individual Clients

-14%
72	62
(12.3%)
	(12.8%)
2018	2019

Commercial Clients

2018	2019
Group*

	+7%
	304
284	(10.0%)
(10.7%)
2018	2019

-34%
65
(12.7%)	43
	(11.1%)
2018	2019

(11.0%)	(10.1%)
2018	2019

Residential Real Estate

Commercial Real Estate

Total Development

Services
+22%
194	236
(24.5%)
(21.5%)

	+175%
7	19
(19.1%)
(10.0%)

+27%
	255
201	(24.0%)
(20.7%)

• o/w Other activities: -€29m in 2019 and -€26m in 2018

• €525m on a like-for-like basis (stable)
• €403m after leases (IFRS 16) in 2019

2018

2019

Services to individuals

2018

2019

Services to companies

2018

2019

Total Services

Nexity / 2019 Full-year Results - Webcast 25 February 2020

21

Change in development margins over the last 5 years

Residential Real Estate

(EBITDA margin in % of revenue)

19%

	11.0%		10.7%
		10.2%
10.0%		10.0%

10%										Normative
9%			8.7%
							level
	2014	2015	2016	2017	2018	2019

Commercial Real Estate

(EBITDA margin in % of revenue)

	18.5%
19%	18.1%

15.4%

	12.7%	11.1%
10.2%

10%

9%

2014

2015

2016

2017

2018

2019

Normative level

Nexity / 2019 Full-year Results - Webcast 25 February 2020	22

Reconciliation between 2019 EBITDA and current operating profit

(in €m)		-€220m
	573

-154

-12	-45	+8		353
	-16

	EBITDA 2019	Right-of-use leased	Leaseback margin	Depreciation,	Provision charges	Share-based	Borrowing costs	2019 Current
		asset depreciation		amortisation	(-) / reversals (+)	payments	directly attributable to	Operating profit
				and impairment	of provisions		property developments
				of fixed assets			transferred from
				-€150m		inventories (IAS 23)
At	523	-94	-9	-32	+5	-14	-6	373
FY 2018

▪

▪

€353m at 31 December 2019 (7.9% margin rate) compared to €373m at 31 December 2018 (9.0% margin rate) Depreciation of right-of-use leased assets (under IFRS 16) in 2019 : €166m compared to €103m at end-December 2018

Nexity / 2019 Full-year Results - Webcast 25 February 2020	23

Simplified balance sheet at 31 December 2019

(in €m)

Goodwills

1,598

1,757

Other assets	239	102
Right-of-use	828
908
leased assets

WCR

1,019

918

Equity

(incl. non-controlling interests)

Provisions

Lease liabilities (IFRS 16)

Total net debt: €1,826m

Net financial debt before lease liabilities

ASSETS	EQUITY AND
	LIABILITIES

Nexity / 2019 Full-year Results - Webcast 25 February 2020	24

Change in 2019 working capital requirement (WCR)

(in €m)		+123 M€
		-2	+3	+6	1,019
896	+116	54
			90
	48
87
762					875
2018	Individual Clients	Individual Clients	Commercial Clients	Other Activities	2019
	Residential Real Estate	Real Estate Services		(incl. Income tax)
		to Individuals

Other Activities (incl. Income tax)

Commercial Clients

Individual Clients

Individual Clients: +€114m

• Controlled Residential Real Estate WCR growth due to the dynamism of business activity
• BFR to Backlog ratio stable for development activities at around 20%

Nexity / 2019 Full-year Results - Webcast 25 February 2020	25

Change in net financial debt before lease liabilities

(in €m)

+€161m

-757
	+558
2018	EBITDA excl.
	Asset disposal

-98

-179

Change in	Interest and tax
operating WCR	payments (incl. CVAE)

						2.3x
						EBITDA after leases
						12-month rolling basis
					-918	(€403m)
-64
-8
		-170
			-164			2.5x
				-36
CAPEX	Financial investments	Repayment of	Dividend and share	Change in non	2019	EBITDA after leases
(indicative target
	and other*	lease liabilities	buyback programmes	controlling interests
		given in June 2018)

• • Decrease of net financial debt after its peak on 30 June 2019 (€1,120m)
• Financial investments and other mainly correspond to Guy Hoquet l'Immoblier and Nexity Conseil et Transaction sale prices (net of cash disposed), to external growth (Accessite) and to new financial investments

Nexity / 2019 Full-year Results - Webcast 25 February 2020	26

Financial debt schedule before lease liabilities

(in €m)

▪

Gross debt at 31 December 2019: €2,034m

120		582(3)
413(1)	442(2)
	357	362(4)

		26		38		134(5)	156(6)
€2,034m
2020	2021	2022	2023	2024	2025	2026	2027

1,557

Corporate borrowings NEU CP Project related loans

• 32% of debt with maturity >5 years
• Average maturity: 3.7 years
• Cost of financing (debt drawn down): 2.3% at end-December 2019 (2.6% in 2018)

1. • Inaugural issue of a €240m Green Bond in December 2019: €84m maturing in 2026 and €156m maturing in 2027
2. Including €25m of bonds issued in May 2014 (2020)
3. Including €146m of bonds isseud in May 2014 (2021)
4. €270m of convertible bonds (incl. shareholders' equity) issued in May 2016 (maturity date 1 January 2023) + €30m of bonds issued in June 2017 (2023)
5. €121m of bonds issued in June 2017 / €200m of convertible bonds issued in March 2018 (2025)
6. Including €84m of bonds issued in December 2019
7. €156m of bonds issued in December 2019

Nexity / 2019 Full-year Results - Webcast 25 February 2020	27

2019 Cash-flow statement

In €m	FY 2019	FY 2018
Cash flow from operating activities before financial and tax expenses	544	508

Cash flow from operating activities after financial and tax expenses	377	350
Change in operating WCR (excluding tax)	(98)	(102)
Change in tax-related working capital, dividends from equity-accounted investments and other	11	22
Net cash from / (used in) operating investments	(60)	(48)

Free cash flow	230	222
Net cash from / (used in) financial investments	6	(73)
Repayment of lease liabilities	(170)	(104)
Dividends paid by Nexity SA	(138)	(140)
Net cash from / (used in) financing activities (excluding dividend)	414	46
Change in cash and cash equivalent	341	(50)

Nexity / 2019 Full-year Results - Webcast 25 February 2020	28

Backlog and total business potential at 31 December 2019

Backlog*

(in €m)

		+14%
		5,095
3,991	4,469	456
308
465
	4,161	4,640
3,526
Dec. 2017	Dec. 2018	Dec. 2019
restated
	Residential Real Estate	Commercial Real Estate

Development business potential**

€15.3bn

Residential
Commercial
Real Estate
				Real Estate
€12.4bn			€3.0bn

75,000 units

New homes Subdivisions International

€10.6bn	€1.2bn	€0.6bn
55,400 units	14,500 units	5,100 units

• 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

**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

Nexity / 2019 Full-year Results - Webcast 25 February 2020	29

2020 targets and 2021 ambition

	REVENUE		EBITDA
		In €m
	In €bn
	>5.3					CAGR +11%	>680
			CAGR +12%							573
		4.5					523
		4.1
						461
	3.6

2017

2018

2019

2020e

2021e

2017

2018

2019

2020e

2021e

2020 target

• Revenue to grow by more than 10%
• EBITDA and current operating profit to grow by +10%
• Dividend paid in 2020(1) at €2.70 per share

2021 ambition

• Revenue of at least €5.3bn (compound annual growth of +10% since 2017)
• EBITDA of at least €680m (compound annual growth of +10% since 2017) around 45% of which to be generated by Services businesses
• Dividend per share of at least €2.70(1) relative to 2020 and 2021 financial periods

Nexity / 2019 Full-year Results - Webcast 25 February 2020	(1) Pending the decision of Nexity's Board of Directors and approval of the Shareholders' Meeting	30

Dividend

in € per share
				2.4	2.5	2.5	2.7	≥2.7	≥2.7
	2.0	2.0	2.2
Paid in:	2014	2015	2016	2017	2018	2019	2020*	2021*	2022*

Payout ratio	~100%	80%	71%	93%
(as a % of EPS):

Nexity / 2019 Full-year Results - Webcast 25 February 2020	* Pending the decision of Nexity's Board of Directors and approval of the Shareholders' Meeting	31

Nexity's ownership structure

31 DECEMBER 2019

56,129,724 shares(1)

5.3%

14.6%

3.2%

6.4%

Crédit Mutuel Arkéa	5.3%	Concert
A. Dinin, New Port (2) and other Nexity's		group
14.6%	19.9%
managers belonging to the concert group
FCPE and other employees (3)	3.2%
Crédit Agricole Assurances	6.4%
Free float	69.4%

69.4%

1. /w treasury shares: 606,.419 shares (1.1%)
2. New Port: 8.1%
3. o/w FCPE (Nexity Actions and Nexity Levier 2017): 2.7%

Nexity / 2019 Full-year Results - Webcast 25 February 2020	32

Appendix

Corporate Responsibility

Create social, environmental and economic value through

5 committments:

Be recognised as a preferred employer

Designing sustainable, responsible cities

Better access to housing and higher-quality neighbourhoods

Better building practices for higher quality of life at work

Upholding high standards in corporate governance and business ethics

Supported by an involved governance:

• Stakeholder committee
• Dedicated committees: Strategy Committee and Board of Directors

€240m inaugural Green Bond issue

• 1st green bond issued by a developer in France

• Residential Real Estate with a level of energy performance belonging to

the top 15%

Nexity / 2019 Full-year Results - Webcast 25 February 2020

Strong partnerships

• Humanité & Biodiversité
• Nexity Non Profit: 777 housing units in family shelters secured in 2019

Performance recognised by non-financial rating agencies

4th place overall (230 companies) compared to 12th place in 2018

France's #1 low-carbon developer

One of the 12 French companies selected by Bloomberg in its GEI Index 2020, on gender equality

Climate change A- in 2020, Nexity part of the 6% best scores worldwide, all sectors

Targets in terms of reducing GHG emissions by 2030:

• -35% per employee
• -30% per new home delivered
• -21% per sq.m of floor area for office space delivered

34

2019 Current Operating margin levels

Development
(in % of revenue)	12.3%
9.3%	8.7%	10.5%	9.8%	8.9%

Total

(in % of revenue)

11.0%		2018	2019	2018	2019	2018	2019
10.0%		Residential Real Estate	Commercial Real Estate	Total Development
8.9%	8.7%	9.0%
		7.9%

							Services
							(in % of revenue)
						11.9%				11.1%
									9.7%
												8.9%
2018	2019	2018	2019	2018	2019
	Indivudual Clients	Commercial Clients	Group		1.5%	1.6%
						2018	2019	2018	2019	2018	2019
							Services to individuals	Services to companies	Total Services
Nexity / 2019 Full-year Results - Webcast 25 February 2020									35

19, rue de Vienne 75 008 Paris

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