Nexity

Results for the 2018 First Half

RESULTS FOR THE FIRST HALF OF 2018 NEXITY'S FINANCIAL OUTLOOK REVISED UPWARDS FOR 2018

Paris, Wednesday, 25 July 2018

• New home reservations in France: up 6% by volume and up 10% by value (vs. H1 2017)
• Revenue: €1.6 billion (up 10%)

EBITDA: €186 million (up 7%); EBITDA margin: 12.0%

Current operating profit: €136 million (up 12%); operating margin: 8.7%

Net profit before non-recurring items: €72 million (up 35%) 

Development backlog: €4.3 billion (up 7%)

Net financial debt before application of IFRS 16^[1]: €739 million

Individual Clients

• Revenue: €1,315 million (up 5%)
• EBITDA: €151 million (down 1%)
• Residential Real Estate: 9,282 reservations, of which 8,252 new home reservations in France^[2] up 6% by volume and 10% by value
• Business potential for new homes: 51,498 units, i.e. 2.7 years of development operations (up 8% from December 2017)
• Controlling stake in Ægide-Domitys acquired in June 2018; provisional goodwill of €251 million

Commercial Clients

• Revenue: €239 million (up 52%)
• EBITDA: €38 million (up 43%)
• Commercial Real Estate: order intake of €74 million as of 30 June 2018 (€138 million in additional orders between 1 and 25 July 2018, putting order intake on track to hit the 2018 target of €400 million)
• Commercial Real Estate business potential of €2.4 billion, i.e. 5.6 years of development operations
• Agreement for major development signed on 13 July 2018: Engie's future eco-business park at La Garenne-Colombes (Hauts-de-Seine)

FINANCIAL OUTLOOK REVISED UPWARDS

• Revenue and EBITDA now expected to grow by over 12% in 2018^[3]
• Confirmation of all other aspects of the outlook communicated on 20 February 2018

Alain Dinin, Chairman and CEO of Nexity, commented:

"In line with our expectations at the beginning of the year, the French residential market contracted slightly (down 5% in the first quarter of 2018). The key forces at work here were the withdrawal of incentives in non-supply-constrained areas, the government's social housing policy and selling prices rising more rapidly than clients' purchasing power. Yet Nexity's new home reservations in France rose 6% during the first six months of the year, as we made good progress towards our target for market share growth. This performance was underpinned by our geographical positioning, our presence in rapidly expanding niche markets - such as serviced residences and social home ownership - the strong performance by the companies we have acquired in recent years, such as Edouard Denis, and our continuing ability to offer affordable prices.

The housing market is experiencing a slowdown, and the ELAN bill, currently being debated by the French parliament, will not - despite the undeniable improvements - produce the anticipated "supply-side shock". Coupled with the imminent 2020 municipal elections, this backdrop suggests that 2019 will be a less favourable year. However, this does not call into question the potential for sustainable and enduring growth in the French residential market. We remain on track with our business plan, which already factored in the aforementioned headwinds, and we intend to extend our leadership with our multi-product and multi-brand model, actively supported by our service businesses.

Our acquisition of a controlling interest in Ægide-Domitys, the French market leader in serviced senior residences, was the key development in these service businesses during the first few months of the year. We aim to leverage this partnership to accelerate Nexity's growth in this very high-potential market.

The Commercial Clients business lines delivered strong growth in highly supportive market conditions characterised by a shortage of vacant high-quality office space in France's major cities.

After growing by 5% in the first quarter, Nexity's revenue continued to accelerate, rising 10% over the first six months of the year. Given seasonal trends in the real estate market - with business activity largely concentrated in the last few months of the year - and the impact of Ægide-Domitys' consolidation from the second half of the year, Nexity is revising upwards its financial outlook for 2018 regarding revenue and EBITDA growth, both now anticipated at over 12% this year.

As stated at Nexity's Investor Day on 19 June 2018, we have a high level of visibility on our results, and so we are targeting growth of 10% per year out to 2021. Beyond our financial goals, Nexity will continue to stand out through product innovation, tighter integration between our development and real estate services businesses and our commitment, which is hard-wired into our make-up, to be useful to our clients and society."

***

At its meeting on Wednesday, 25 July 2018, chaired by Alain Dinin, Nexity's Board of Directors reviewed and approved the Group's condensed consolidated financial statements for the half-year period ended 30 June 2018, which can be found in the annexes of this press release. The 2018 half-year financial statements were subject to a limited review by the Statutory Auditors of the Company.

BUSINESS ACTIVITY IN H1 2018

INDIVIDUAL CLIENTS - RESIDENTIAL REAL ESTATE

In the first quarter of 2018, the retail market for new homes in France^[4] was slightly less buoyant than in 2017 with just over 30,000 net reservations, down 5% year on year.

Mortgage rates for individual borrowers stayed at a very low level (1.44% on average in June 2018^[5]), and Nexity expects interest rates to rise gradually.

Reservations (units and €m)		H1 2018		H1 2017		Change %
New homes (France)		8,252		7,794		+5.9%
Subdivisions		915		1,159		-21.1%
International		115		143		-19.6%
Total reservations (number of units)		9,282		9,096		+2.0%
New homes (France)		1,666		1,513		+10.1%
Subdivisions		78		88		-11.1%
International		10		23		-54.9%
Total reservations (€m incl. VAT)		1,755		1,624		+8.1%

The impact of the increase in VAT from 5.5% to 10% on reservations for social housing units signed before 31 December 2017 at the previous lower rate is not included in the amount of reservations for the first half of 2018. No reservations by professional landlords were withdrawn following this VAT increase. Backlog, which represents future revenue, is expressed exclusive of tax.

New homes
In the first half of 2018, the Group's net new home reservations in France totalled 8,252 units, up 6% by volume and up 10% by value year on year compared with H1 2017. Expected revenue from reservations rose more sharply than the volume of reservations, particularly as a result of the geographic mix and the far larger number of reservations in the Paris region, where the average price for units reserved is higher.

With respect to their geographic distribution, 88% of the reservations were located in supply-constrained areas (the A, A bis and B1 zones under the current Pinel scheme). Reservations grew apace in the Paris region (up 12%) but more moderately in the rest of France (up 2%).

In the second quarter of 2018, net new home reservations in France increased 8% by volume and 11% by value.

Breakdown of new home reservations by client - France (number of units)		H1 2018			H1 2017
Homebuyers		2,296	28%		2,112	27%
o/w: - first-time buyers		1,875	23%		1,582	20%
- other homebuyers		421	5%		530	7%
Individual investors		3,630	44%		3,729	48%
Professional landlords		2,326	28%		1,953	25%
Total new home reservations		8,252	100%		7,794	100%

Reservations by first-time buyers were up 19% on H1 2017. Reservations placed by homebuyers made up 28% of Nexity's total new home reservations in the first half.

Reservations by individual investors declined in H1 2018 (down 3% relative to H1 2017). Individual investors accounted for 44% of new home reservations during the quarter, with 68% making use of the Pinel scheme.

Reservations made by professional landlords comprised 28% of total new home reservations. They rose 19% compared with H1 2017, with significant growth in reservations made by investors in intermediate and non-social housing (2 times higher than in H1 2017). These accounted for 34% of total reservations by professional landlords in the first half of 2018 (with the remaining 66% made by social housing operators).

In this regard, Nexity has just reached an agreement on 2 framework agreements with leading professional landlords, for significant new home sales volumes:

• One with CDC Habitat (former SNI), for 5,000 intermediate homes over 3 years; and
• The other one with in'li, for 5,000 intermediate homes over 5 years.

Nexity is thus further strengthening its leadership in bulk sales for professional landlords, which harbor substantial growth potential.

Average selling price & floor area*		H1 2018		H1 2017		Change %
Average price incl. VAT per sq.m (€)		3,979		3,857		+3.1%
Average floor area per home (sq.m)		57.7		56.7		+1.8%
Average price incl. VAT per home (€k)		229.7		218.8		+5.0%
* Excluding bulk reservations, reservations by iSelection, PERL, Edouard Denis and Primosud, and international operations.

The average price including VAT of new homes reserved by Nexity's individual clients at end-June 2018 was up 5% compared with end-June 2017, reflecting among other factors a rise in the average price per square metre.

The average level of pre-selling booked at the start of construction work remained very high at 75% at end-June 2018 (compared with 79% in H1 2017).

Nexity launched a total of 7,277 units in the first half of 2018 (down 30% from H1 2017), reflecting a cautious approach. The supply of homes for sale dropped back 3% from its end-December 2017 level to stand at 8,383 units at end-June 2018, i.e. an average time to market of 5.3 months.^[6] Unsold completed stock (118 units) as a proportion of the total supply for sale remained very low.

At end-June 2018, the business potential for new homes^[7] came to 51,498 units, i.e. 2.7 years of development operations, up 18% from end-June 2017 and up 8% from end-December 2017. In addition to providing a guarantee of future supply, this growth has been achieved at land price conditions allowing Nexity to remain on track to meet its margin targets.

Subdivisions
Subdivision reservations totalled 915 units, down 21% relative to H1 2017. Of these, only 30% were located in supply-constrained areas. Business activity in other areas was affected by the phase-out of the PTZ interest-free loan scheme in non-supply-constrained areas. The average price of net reservations made by individuals rose 8% to €83k as a result of the higher average price per square metre (up 8%) and the improvement in the geographic mix.

International
In the first half of 2018, Nexity recorded 115 new home reservations outside France, down 20% from end-June 2017. These were all located in Poland.

INDIVIDUAL CLIENTS - REAL ESTATE SERVICES TO INDIVIDUALS

In the Group's property management for individuals businesses, excluding franchises (condominium management, rental management, lettings, brokerage), the portfolio of units under management totalled more than 880,000 units at 30 June 2018, with a low churn rate (1.4% at end-June 2018 on a like-for-like basis, compared with 1.2% at 30 June 2017^[8]).

In franchise operations, Century 21 and Guy Hoquet l'Immobilier signed 3.5% more provisional sale agreements in the first half of 2018 than in the first half of 2017, in a market for existing real estate in France that should remain buoyant in 2018.^[9] The number of franchisees rose in the first half of 2018 to 1,334 agencies at end-June 2018 versus 1,292 at end-December 2017.

Nexity Studéa, a leading student residence management company (124 residences, i.e. over 15,200 units under management at 30 June 2018), posted an increase in its occupancy rate to 92.2% (compared with 90.9% at end-June 2017).

Distribution activities under the iSelection and PERL brands recorded 2,221 reservations in the first half of 2018 (compared with 2,188 reservations in H1 2017). Business remained brisk despite the unfavourable impact of the increase in VAT on social housing from 5.5% to 10%, affecting the number of reservations recorded by PERL.

Of these reservations, 1,142 were homes distributed on behalf of third-party real estate developers or through the division of ownership of existing property. The remainder corresponds to Nexity's new home reservations recorded within Residential Real Estate sales.

INDIVIDUAL CLIENTS - ÆGIDE-DOMITYS PARTNERSHIP

On 30 May 2018, Nexity exercised the call option enabling it to acquire an additional 18% stake in Ægide, the parent company of Ægide-Domitys, from its founders (via JMF Conseil). Nexity's ownership interest has thus increased from 45.16% to 63.16%, with JMF Conseil holding 36.84%. Ægide-Domitys will thus be fully consolidated in Nexity's accounts from 1 July 2018.

Founded in 1999, Ægide-Domitys builds, owns and markets senior independent living facilities, for which it acts as both developer and operator.  

In the first half of 2018:

• Ægide's development business recorded 1,187 reservations (331 of which for units in co-development projects with Nexity), for expected revenue from reservations of €223 million including VAT (of which €61 million in co-development projects with Nexity);
• Domitys opened six new residences during the period, increasing its portfolio of serviced residences to 78, corresponding to around 9,200 residential units.

INDIVIDUAL CLIENTS - DIGITAL AND INNOVATION

Nexity continued its transformation into a client-focused real estate services platform through in-house digitisation projects and investment in new services, including the following:

• Bien'ici - a next-generation property listings website in which Nexity has a 48% stake alongside a consortium of real estate professionals (Consortium des Professionnels de l'Immobilier) - continued to receive a growing number of membership requests from professionals wishing to place paid listings (with 8,041 member agencies at end-June 2018 compared with 7,352 at end-2017). The number of visits to the website has continued to grow, setting a new record of 4.9 million visits in June 2018, making Bien'ici the number-three real estate portal in the French market a mere two years after it was launched.
• Eugénie - a digital service that connects residents to their home as well as their managing agent, neighbours and neighbourhood - was launched in early 2018. Eventually, all Nexity homes will be connected to the system and occupants will be able to manage their homes using a range of features (including smart appliances, a communication channel, a listing tool for approved service providers and a mini-community social network).

COMMERCIAL CLIENTS^[10]

In the second quarter of 2018, the French commercial real estate investment market was very strong, with more than €7 billion invested, bringing the total investment for the first half of 2018 to nearly €11.5 billion euros. Office space in the Paris region accounted for 75% of these volumes, including prime assets, some of which traded at an all-time low yield of 3%. The market for VEFA off-plan contracts for offices remained buoyant (at nearly €1.4 billion), still including a large proportion of speculative deals, remaining stable at 47% of transactions and reflecting investors' appetite for risk in anticipation of a shortage of high-quality supply in the rental market.

The rental market was again buoyant in the second quarter of 2018, with take-up in the Paris region totalling more than 640,000 sq.m, bringing take-up (volume of rental transactions and user sales) to 1.3 million sq.m in the first half of 2018, up 15% from the first half of 2017.

New orders in the first half of 2018 totalled €74 million excluding VAT, breaking down into:

• €41 million in orders in the Paris region (56% of total new orders), including a €28 million development in Pré-Saint-Gervais (Seine-Saint-Denis), also spurred by the Nexity Contractant Général general contractor business, which logged €12 million in orders; and
• €33 million in orders outside the Paris region (44% of total new orders), including a €15 million development in Nanteuil-le-Haudouin (Oise) and wood-frame developments representing a total of €12 million in orders.

The €138 million in additional new orders logged between 1 and 25 July 2018 means that Nexity remains on track to reach its order intake guidance for 2018 of €400 million.

At end-June 2018, the Group's business potential for Commercial Real Estate^[11] was €2.4 billion, representing 5.6 years of development operations (up 53% since end-December 2017). In particular, this performance reflects the impact of a major programme at La Garenne-Colombes (Hauts-de-Seine), developed under a financial and technological partnership with Engie. This 9-hectare plot will be home to Engie's new eco-business park, among other buildings.

The volume of units under management in Real Estate Services to Companies totalled 11.4 million sq.m at end-June 2018, stable with respect to end-December 2017.

LOCAL AUTHORITY CLIENTS

At end-June 2018, the land development potential of Nexity's urban regeneration business (Villes & Projets) declined 2.8% to 571,700 sq.m.^[12] Changes to the portfolio arose from the acquisition of a 36,700 sq.m. plot of land at Solliès-Pont (Var) and the intra-Group sale of residential development rights for the Nanteuil-le-Haudouin programme (Oise).

At end-June 2018, Nexity's land bank11 amounted to €109 million.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

In June 2018, mindful of its role as a responsible corporate citizen, Nexity announced the establishment of a new entity, Nexity Non Profit, which has undertaken to create 1,000 places in boarding houses each year over the next three years, to help provide housing for those most in need. Nexity has also launched an initiative to offer vacant residential units in private residential properties to disadvantaged people, by working with specialist partners in supportive housing and solidarity-focused rental property management. In accordance with the commitments made by the Group, the business model for this activity will be financially neutral.

H1 2018 CONSOLIDATED RESULTS - OPERATIONAL REPORTING^[13]

The 2017 data shown below has been restated to improve its comparability. A breakdown of the restatements is provided in Annex 3 of this press release.

€ millions		H1 2018		H1 2017 restated		Change in €m
Consolidated revenue		1,556.4		1,412.6		143.9
EBITDA		186.2		174.6		11.6
% of revenue		12.0%		12.4%
Current operating profit		135.8		120.8		15.0
Remeasurement of Ægide-Domitys following acquisition of control		79.2		-
Operating profit		215.1		120.8		94.3
Net financial income/(expense)		(17.9)		(19.5)		1.7
Income taxes		(44.3)		(40.8)		(3.4)
Share of profit/(loss) from equity-accounted investments		(0.9)		(5.2)		4.3
Net profit		152.0		55.3		96.8
Non-controlling interests		(1.6)		(1.9)		0.3
Net profit attributable to equity holders of the parent company		150.5		53.4		97.0
(in euros)
Earnings per share		2.68		0.97		1.71

Net profit before non-recurring items¹³ attributable to equity holders of the parent company came to €71.9 million in the first half of 2018, up 35% from €53.4 million in H1 2017, or €1.28 per share^[14] (compared with €0.97 in H1 2017), representing an increase of 32%.

REVENUE

In the first half of 2018, Nexity recorded revenue of €1,556 million, up 10% relative to the first half of 2017.

€ millions		H1 2018		H1 2017 restated		Change %
Individual Clients		1,315.4		1,252.7		+5.0%
Residential Real Estate*		969.3		887.3		+9.2%
Real Estate Services to Individuals		346.1		365.4		-5.3%
Commercial Clients		239.1		157.0		+52.3%
Commercial Real Estate*		208.3		128.0		+62.7%
Real Estate Services to Companies		30.9		29.0		+6.6%
Other activities		1.9		2.8		-34.0%
Revenue		1,556.4		1,412.6		+10.2%

* Revenue generated by Residential Real Estate and Commercial Real Estate 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 inventoriable production costs incurred.
Individual Clients 

The Individual Clients division recognised revenue of €1,315 million in the first half of 2018, up 5% from H1 2017.

Residential Real Estate recognised revenue of €969 million in the first half of 2018, up 9% relative to H1 2017. This growth reflects the increase in the backlog observed over the previous quarters.

Real Estate Services to Individuals posted revenue of €346 million in the first half of 2018, down 5% relative to H1 2017. In the first half of 2018, the property management for individuals business (including franchises) generated €177 million in revenue, up 2% compared with H1 2017. The serviced residences activities (Studéa) generated €44 million in revenue, up 3% compared with H1 2017. Distribution activities, which are by nature more volatile, generated revenue of €126 million in H1 2018, down 16% relative to H1 2017, due to a base effect on outstanding reservation agreements.

Commercial Clients 
The Commercial Clients division posted revenue of €239 million in the first half of 2018, up 52% from H1 2017. This strong growth reflects the good progress on development in the construction phase.

Commercial Real Estate recognised revenue of €208 million in the first half of 2018. That represented a strong increase of 63% relative to H1 2017 both in and outside the Paris region, with wood-frame products playing a key role.
Real Estate Services to Companies posted revenue of €31 million in the first half of 2018, up 7% relative to H1 2017.

Revenue under IFRS
In IFRS terms, revenue to end-June 2018 totalled €1,488 million, up 10% relative to restated consolidated revenue of €1,357 million in the period ended 30 June 2017. This figure excludes revenue from joint ventures, in accordance with IFRS 11, which requires joint ventures to be accounted for via the equity method instead of proportionately consolidated as they were previously.

EBITDA^[15]

Nexity generated EBITDA of €186 million in the first half of 2018, compared with €175 million in the first half of 2017, representing year-on-year growth of 7% and an EBITDA margin of 12.0%, down 0.4 points from its level in H1 2017.

€ millions		H1 2018		H1 2017 restated		Change %
Individual Clients		151.2		152.7		-1.0%
% of revenue		11.5%		12.2%
Residential Real Estate		88.9		78.2
% of revenue		9.2%		8.8%
Real Estate Services to Individuals		62.3		74.5
% of revenue		18.0%		20.4%
Commercial Clients		37.9		26.6		+42.6%
% of revenue		15.8%		16.9%
Commercial Real Estate		37.4		27.0
% of revenue		18.0%		21.1%
Real Estate Services to Companies		0.5		(0.4)
% of revenue		1.6%		-1.4%
Other activities		(2.9)		(4.7)		na
EBITDA		186.2		174.6		+6.7%
% of revenue		12.0%		12.4%

Individual Clients 
EBITDA from Individual Clients came to €151 million in the first half of 2018, down 1%, or €1.5 million, compared with the first half of 2017. That represented an EBITDA margin of 11.5%, down 0.7 points from its level in H1 2017.

EBITDA from Residential Real Estate grew 14%, or €10.7 million, compared with H1 2017 to reach €89 million in the first half of 2018, reflecting smooth progress on housing and subdivision development projects. The margin widened by 0.4 points to 9.2%.

EBITDA from Real Estate Services to Individuals decreased by €12 million and the EBITDA margin narrowed by 2.4 points to 18,0%, from 20.4% in H1 2017.
The primary factors behind this decline were:

• EBITDA from serviced residences decreased by €6 million (to €18 million) due to an automatic effect from IFRS 16: the number of residences remained unchanged, but the increase in automatically renewable leases and those with a term of less than one year led to higher operating expenses, whilst reducing the amount of depreciation of leasehold right^[16];
• a contraction in EBITDA from property management for individuals including franchise networks (down €5million to €29 million) representing a margin of 16.4%. This decrease reflects a negative impact from the seasonality between revenue in some activities (rental management, brokerage) and the straight-line method of accounting for expenses, as well as an effect from IFRS 16 on a specific lease renegotiation;
• EBITDA from distribution decreased by €1 million (to €15 million) due to a lower volume of activity.

Commercial Clients
EBITDA for Commercial Real Estate totalled €37 million in H1 2018, compared with €27 million in H1 2017 (up 39%). Its margin stood at 18.0%, reflecting excellent financial and technical management of ongoing projects as well as the healthier economic and financial climate.

EBITDA for Real Estate Services to Companies was €0.5 million, compared with a loss of €0.4 million in H1 2017.

Other activities
EBITDA for Other activities (loss of €2.9 million in the first half of 2018, compared with a loss of €4.7 million in H1 2017) includes profit/(loss) from the holding company, research and overhead costs incurred by Villes & Projets, as well as the development of incubated start-ups and digital projects.

OPERATING PROFIT

Operating profit came to €215 million, reflecting the impact of €79 million arising from the remeasurement (following the acquisition of control) of the 45% stake in Ægide-Domitys, which was previously accounted for under the equity method.

In the first half of 2018, Nexity generated current operating profit^[17] of €136 million, compared with €121 million in H1 2017 (up 12%), yielding a margin of 8.7%, compared with 8.6% in H1 2017. The operating margin was virtually stable compared with H1 2017, whereas the EBITDA margin narrowed by 0.4 points, owing to the fact that the amount of non-cash expenses entering into the determination of operating profit was lower in H1 2018 than in H1 2017 (€50.4 million versus €53.8 million, respectively), mainly as a result of lower amortisation charges under IFRS 16 in 2018 (-€7.6 million), which are transferred to operating expenses (see comments on the change in EBITDA for student residences).

€ millions		H1 2018		H1 2017 restated		Change %
Individual Clients		112.0		108.6		+3.1%
% of revenue		8.5%		8.7%
Residential Real Estate		74.8		69.6
% of revenue		7.7%		7.8%
Real Estate Services to Individuals		37.1		39.0
% of revenue		10.7%		10.7%
Commercial Clients		35.5		23.5		+51.0%
% of revenue		14.8%		15.0%
Commercial Real Estate		37.5		26.1
% of revenue		18.0%		20.4%
Real Estate Services to Companies		(2.0)		(2.6)
% of revenue		-6.4%		-9.1%
Other activities		(11.6)		(11.3)		na
Current operating profit		135.8		120.8		+12.5%
% of revenue		8.7%		8.6%
Remeasurement of equity-accounted investments following acquisition of control		79.2		-
Operating profit		215.1		120.8		+78.1%
% of revenue		13.8%		8.6%

OTHER INCOME STATEMENT ITEMS

Net financial expense was €18 million, versus €20 million in H1 2017. This slight decrease in net financial expenses despite the higher level of debt reflects a drop in Nexity's average borrowing costs. Net financial expense includes a €0.6 million expense in respect of the change in fair value of the €200 million ORNANE bond placement arranged in March 2018. In 2017, this item included a non-recurring expense of €3.1 million, corresponding to the payment made at the early redemption of a bond issue.

The tax expense (€44 million) was €3 million higher than in the first half of 2017. This line item now includes the CVAE^[18] levy, which was €5.1 million in the first half of 2018, compared with €5.9 million in H1 2017. The effective tax rate (excluding the CVAE levy) stood at 34.7% in the first half of 2018, compared with 36.3% in H1 2017.

Equity-accounted investments made a negative contribution of €1 million (compared with a €5.2 million loss in H1 2017). The main components of this item were the contributions from Bien'ici and Ægide-Domitys, which improved their results in the first half of 2018.

Financial expenses and tax rate changes, combined with the improvements in the contributions of equity-accounted investments, led to growth in the Group share of net profit appreciably higher than that of EBITDA and operating profit.

The Group share of net profit was €150.5 million, a 2.8x improvement over net profit in the first half of 2017.

After non-recurring items - remeasurement of the investment in Ægide previously accounted for under the equity method following the acquisition of control (positive impact of €79 million) and the change in fair value adjustment to the ORNANE bond issue (negative impact of €0.6 million) - net profit before non-recurring items came to €72 million, 35% higher than the Group share of net profit in the first half of 2017.

CASH FLOWS AND WORKING CAPITAL REQUIREMENT (WCR)

€ millions		H1 2018		H1 2017 restated
Cash flow from operating activities before interest and tax expenses		181.6		167.5
Cash flow from operating activities after interest and tax expenses		121.4		110.9
Change in operating working capital (excluding tax)		(149.2)		(9.2)
Changes in tax-related working capital, dividends from equity-accounted investments and other		6.1		(3.5)
Net cash flow from/(used in) operating activities		(21.8)		98.2
Net cash flow from/(used in) operating investments		(14.5)		(15.4)
Free cash flow		(36.3)		82.7
Net cash flow from/(used in) financial investments		(51.4)		(2.6)
IFRS 16 lease payments made		(32.5)		(41.2)
Dividends paid by Nexity SA		(140.3)		(132.7)
Net cash flow from/(used in) financing activities, excluding dividends		(203.9)		59.1
Change in cash and cash equivalents		(56.6)		(34.6)

Cash flow from operating activities before interest and tax expenses totalled €182 million in the first half of 2018, up €14 million relative to H1 2017, mainly as a result of the improvement in earnings over the period.

Operating investments remained stable compared with H1 2017, at €15 million.

Nexity's free cash flow^[19] in the first half of 2018 was -€36 million, compared with a positive figure of €83 million in H1 2017, as a result of a strong increase in WCR (which rose by €149 million).

Net cash from financial investments amounting to €51.4 million mainly corresponds to external growth transactions (acquisition of an additional 18% stake in Ægide and of several firms in property management for individuals).

Net cash from financing activities (€204 million) corresponds to new borrowings (€239 million), mainly the proceeds of the ORNANE bond issue (€200 million) reduced by payments relating to commitments to acquire minority interests (-€34 million).

€ millions		30 June 2018		31 December 2017 restated		Change in €m
Individual Clients		840		806		34
Residential Real Estate		791		735
Real Estate Services to Individuals		49		71
Commercial Clients		78		(21)		100
Commercial Real Estate		77		(26)
Real Estate Services to Companies		2		6
Other activities		48		28		20
Total WCR excluding tax		966		813		153
Corporate income tax		5		3		2
WCR		971		817		154

Operating WCR at 30 June 2018 was €966 million, up €153 million from its level in December 2017.

For Individual Clients, the positive trend in WCR reflects the Group's strong business activity growth, with mixed results depending on the business: WCR for Residential Real Estate increased, in line with the momentum in this segment, but was offset by lower WCR at Real Estate Services to Individuals, given limited supply for its distribution activities.

For Commercial Clients, WCR for Commercial Real Estate was up €103 million, due to higher levels for certain developments with less favourable client payment schedules.

The change in the WCR of Other activities reflects the impact of occasional cash flow delays. This WCR also includes new land positions secured by the Group's urban regeneration business (Villes & Projets).

GOODWILL

Goodwills at 30 June 2018 were €1,474 million (versus €1,213 million at end-2017). This change mainly reflects €251 million of preliminary goodwill from Ægide-Domitys acquisition of control: price paid for the shares and repurchase agreement for the remaining shares for €142 million as well as the remeasurement at €109 million of the investment in Ægide (previously accounted for under the equity method).

FINANCIAL STRUCTURE

Nexity's consolidated equity (attributable to equity holders of the parent company) was €1,662 million at end-June 2018, compared with €1,663 million at end-December 2017, mainly after €140 million in dividends paid and the inclusion of net profit for the half-year period (€150 million in Group share).

€ millions		30 June 2018		31 December 2017 restated		Change in €m
Bond issues (incl. accrued interest and arrangement costs)		903		703		200
Loans and borrowings		590		454		136
Other financial borrowings and other financial receivables		6		3		4
Net cash and cash equivalents		(761)		(817)		57
Net financial debt before IFRS 16		739		343		396
IFRS 16 lease liabilities		281		304		(23)
Total net debt		1,020		647		373

On 27 February 2018, Nexity issued bonds via a private placement that may be converted into cash and/or new shares and/or existing shares (ORNANE 2018), raising an amount of €200 million and maturing in March 2025 (7-year maturity). These bonds bear interest at an annual nominal rate of 0.25%.

Net debt amounted to €1,020 million at 30 June 2018, compared with €647 million at 31 December 2017 (increase of €373 million).

At 30 June 2018, net debt stood at 61% of equity and around 2.2x EBITDA over the previous 12 months.

Net financial debt before IFRS 16 rose €396 million and stood at 44% of equity and about 1.6x EBITDA excluding IFRS 16. This increase in net financial debt since 31 December 2017 is explained in particular by:

• the increase in WCR (up €149 million), detailed above;
• the acquisition of an additional 18% stake in Ægide, which entails its full consolidation from 1 July 2018: this transaction had an impact of €142 million on net debt financial debt in the first half (corresponding to the price paid for the additional stake, after accounting for commitments to acquire minority interests); Ægide-Domitys' existing financial liabilities will be consolidated in the financial statements for the year ended 31 December 2018; and
• the usual seasonal impact for Nexity (payment of 100% of the annual dividend in the first half - in the amount of €140 million for H1 2018 - although less than half of the annual cash flow from operating activities is generated during this part of the year).

At 30 June 2018, the average maturity of the Group's debt was 3.8 years and the average cost of debt was 2.5%, versus 2.9% at 31 December 2017. Nexity was in compliance with all of the financial covenants attached to its bond borrowings at 30 June 2018.

BACKLOG AT 30 JUNE 2018

€ millions		30 June 2018		31 December 2017 restated		Change %
Residential Real Estate - New homes		3,724		3,335		+11.7%
Residential Real Estate - Subdivisions		201		191		+5.0%
Residential Real Estate backlog		3,924		3,526		+11.3%
Commercial Real Estate backlog		332		465		-28.7%
Total Group backlog		4,256		3,991		+6.6%

The Group's backlog at end-June 2018 stood at €4,256 million, up 7% relative to end-December 2017 and equivalent to 18 months' revenue from Nexity's development activities (revenue on a rolling 12-month basis).

Backlog in Residential Real Estate totalled €3,924 million, up 11% compared with at 31 December 2017. This backlog amounts to 19 months of revenue (Residential Real Estate revenue on a rolling 12-month basis).

Backlog in Commercial Real Estate totalled €332 million at end-June 2018, down 29% compared with at 31 December 2017. This backlog amounts to 9 months of revenue (Commercial Real Estate revenue on a rolling 12-month basis).

OUTLOOK FOR 2018

• Revenue and EBITDA now expected to grow by over 12% in 2018^[20]
• Individual Clients: continued growth in Nexity's market share, in a market expected to contract slightly while remaining at a high level (120,000/125,000 reservations expected in 2018^[21])
• Commercial Clients: order intake of €400 million
• Dividend per share payable in 2019^[22] of at least €2.50

STRATEGIC DIRECTION AND OBJECTIVES FOR THE PERIOD 2018-2021^[23]

At its Investor Day on 19 June 2018, Nexity gave a detailed presentation of its real estate services platform strategy and its objectives for the period 2018-2021.

Nexity's business targets for 2018-2021

• Individual Clients: strong market share growth for Residential Real Estate (up 3 percentage points between 2017 and 2021); growth in the number of units managed in Property Management to Individuals in the period 2019-2021; and strong development of serviced residences for students with Nexity Studéa and for elderly people with the acquisition of a majority stake in the share capital of Ægide-Domitys, French market leader in senior independent living facilities;
• Commercial Clients: order intake doubled over the period 2018-2021 compared with previous years;
• Local Authority Clients: reinforce its position as the leading private planner in France, by developing new services, around the inclusive smart cities and new urban uses, and complete its offer by the forthcoming creation of a land bank company, a tool for local authorities' development, whose capital will be majority owned by third-party investors.

Nexity's medium-term financial targets
Nexity announced the following medium-term targets:

• Compound annual revenue growth of 10% (2017-2021)
• Compound annual EBITDA growth of 10% (2017-2021)

All the Group's business lines will contribute to this growth, and especially its Services businesses, which are expected to account for 45% of the Group's total EBITDA by 2021.

This strong anticipated growth will go hand-in-hand with a controlled increase in the Group's debt (target level for net financial debt of about 2.5x EBITDA^[24]). This target level will allow Nexity to proceed with carefully selected external growth transactions in its different businesses.

It will be accompanied by an ever-watchful eye on profitability, the maintenance of a prudent risk profile and a strong solvency position. The Group's investments over the period will amount to around €65 million each year, including €30 million dedicated to digital initiatives, the balance being linked to business investments.

The dividend will be set at a minimum of €2.50 per share in respect of each financial year in the period 2018-2021. Furthermore, Nexity's Board of Directors has decided that the Company will buy back shares each year, in the proportion necessary to offset the dilution caused by the vesting of free shares with the Group's employees.

These financial targets will be supplemented by a full range of CSR initiatives, including the reduction of greenhouse gas emissions resulting from the projects developed by Nexity.

FINANCIAL CALENDAR AND PRACTICAL INFORMATION

9M 2018 revenue and business activity	Tuesday, 30 October 2018
2018 annual results	Tuesday, 19 February 2019
Q1 2019 revenue and business activity	Wednesday, 25 April 2019
Shareholders' Meeting	Thursday, 23 May 2019

A conference call on the results for the first half of 2018 will be held in English today at 6:30 p.m. CET, accessible using code 9977526 by dialling the following numbers:

-      Calling from France	[phone]
-      Calling from elsewhere in Europe	[phone]
-      Calling from the United States	[phone]

The presentation accompanying this conference will be available on the Group's website from 6:15 p.m. CET and may be viewed at the following address: https://edge.media-server.com/m6/p/zc3qz9ys

The conference call will be available on replay at http://www.nexity.fr/real-estate from the following day.

The 2018 interim financial report (French version) was submitted to the Autorité des Marchés Financiers (AMF) today and can be accessed via the Nexity group website.

Disclaimer

AT NEXITY, WE AIM TO SERVE ALL OUR CLIENTS AS THEIR REAL ESTATE NEEDS EVOLVE Nexity offers the widest range of advice and expertise, products, services and solutions for individuals, companies and local authorities, so as to best meet the needs of our clients and respond to their concerns. Our businesses - real estate transactions, management, design, development, planning, advisory and related services - are now optimally organised to serve and support our clients.  As the benchmark operator in our sector, we are resolutely committed to all of our clients, but also to the environment and society as a whole.   Nexity is listed on the SRD and on Euronext's Compartment A Member of the indices: SBF 80, SBF 120, CAC Mid 60, CAC Mid & Small and CAC All Tradable Ticker symbol: NXI - Reuters: NXI.PA - Bloomberg: NXI:FP ISIN code: FR0010112524 ______   CONTACT Domitille Vielle - Head of Investor Relations / [phone] - [e-mail] Géraldine Bop - Deputy Head of Investor Relations / [phone] - [e-mail]

The information, assumptions and estimates that the Company could reasonably use to determine its objectives 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 Registration Document filed with the AMF under number D.18-0272 on 5 April 2018 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.

ANNEX 1: OPERATIONAL REPORTING

The financial data and indicators presented below correspond to Nexity's operational reporting, with joint ventures proportionately consolidated and reconciled with the new IFRS as applied since 1 January 2018. Nexity continues to apply proportionate consolidation to its joint ventures, which in its view provides a more accurate reflection of the Group's performance and risks as measured by revenue, operating profit, working capital requirement and debt.

The 2017 data shown below has been restated to improve its comparability. A breakdown of the restatements is provided in Annex 3 of this press release.

QUARTERLY FIGURES

Reservations: Residential Real Estate

		2018			2017					2016
Number of units		Q2	Q1		Q4	Q3	Q2	Q1		Q4	Q3	Q2	Q1
New homes (France)		4,634	3,618		5,736	4,821	4,288	3,506		5,201	3,624	4,121	2,947
Subdivisions		576	339		920	522	680	479		1,027	420	654	417
International		75	40		208	69	106	37		141	95	170	73
Total (number of units)		5,285	3,997		6,864	5,412	5,074	4,022		6,369	4,139	4,945	3,437
Value (€m incl. VAT)
New homes (France)		951	715		1,135	915	858	655		969	666	772	536
Subdivisions		51	28		72	42	53	35		87	30	48	32
International		6	4		22	6	14	9		21	17	28	13
Total (€m incl. VAT)		1,008	747		1,229	964	925	699		1,076	713	848	581

Revenue by division

		2018			2017 (restated)					2017 (published)
€ millions		Q2	Q1		Q4	Q3	Q2	Q1		Q4	Q3	Q2	Q1
Individual Clients		712.3	603.1		1,173.9	733.9	689.3	563.3
o/w Residential Real Estate		524.2	445.1		915.7	548.0	498.4	387.9		970.3	553.6	625.8	447.8
o/w Real Estate Services to Individuals		188.1	158.0		258.2	185.9	190.9	175.4
Commercial Clients		154.4	84.7		165.5	84.0	60.4	96.7
o/w Commercial Real Estate		138.7	69.6		145.6	69.5	45.2	82.8		151.2	103.6	56.7	85.8
o/w Real Estate Services to Companies		15.8	15.1		19.8	14.5	15.2	13.9
Services			-		-	-	-	-		134.0	127.5	124.3	121.3
Other activities		1.4	0.5		0.8	0.7	1.7	1.1		0.8	0.6	1.7	1.1
Revenue		868.1	688.3		1,340.2	818.6	751.4	661.1		1,256.3	785.4	808.5	656.0

CONSOLIDATED INCOME STATEMENT - 30 JUNE 2018

€ millions	30/06/2018 IFRS	Restate-ment  of joint ventures	30/06/2018 Operational  reporting	Restate-ment of non-recurring items	30/06/2018 Operational reporting before non-recurring items		30/06/2017 Operational reporting before non-recurring items
Revenue	1,488.2	68.3	1,556.4	-	1,556.4		1,412.6
Operating expenses	(1,310.7)	(59.5)	(1,370.2)	-	(1,370.2)		(1,238.0)
Dividends received from equity-accounted investments	2.3	(2.3)	-	-	-		-
EBITDA	179.8	6.4	186.2	-	186.2		174.6
IFRS 16 depreciation	(31.1)	-	(31.1)	-	(31.1)		(38.7)
Depreciation, amortisation and impairment of fixed assets	(12.6)	-	(12.6)	-	(12.6)		(11.1)
Net change in provisions	3.2	(1.3)	1.9	-	1.9		3.5
Share-based payments	(5.6)	-	(5.6)	-	(5.6)		(5.4)
Borrowing costs directly attributable to property developments, transferred from inventory	(3.0)	(0.0)	(3.0)	-	(3.0)		(2.0)
Dividends received from equity-accounted investments	(2.3)	2.3	-	-	-		-
Current operating profit	128.4	7.5	135.8	-	135.8		120.8
Remeasurement of equity-accounted investments following acquisition of control	79.2	-	79.2	(79.2)	-		-
Operating profit	207.6	7.5	215.1	(79.2)	135.8		120.8
Share of profit from equity-accounted investments	4.5	(4.5)	-	-	-		-
Operating profit after share of profit from equity-accounted investments	212.1	3.0	215.1	(79.2)	135.8		120.8
Cost of net financial debt	(19.9)	(0.2)	(20.1)	-	(20.1)		(18.9)
Other financial income/(expense)	2.2	(0.0)	2.2	0.6	2.8		(0.6)
Net financial income/(expense)	(17.6)	(0.2)	(17.9)	0.6	(17.2)		(19.5)
Pre-tax recurring profit/(loss)	194.5	2.7	197.2	(78.6)	118.6		101.3
Income taxes	(41.5)	(2.7)	(44.3)	-	(44.3)		(40.8)
Share of profit/(loss) from other equity-accounted investments	(0.9)	-	(0.9)	-	(0.9)		(5.1)
Consolidated net profit/(loss)	152.0	-	152.0	(78.6)	73.5		55.3
Attributable to non-controlling interests	1.6	-	1.6	-	1.6		1.9
Attributable to equity holders of the parent company	150.5	-	150.5	(78.6)	71.9		53.4
(in euros)
Earnings per share	2.68		2.68		1.28		0.97

Restatements of non-recurring items are comprised of:

• the remeasurement of the investment in Ægide previously accounted for under the equity method following the acquisition of a controlling interest in this company for €79.2 million; and
• the change in fair value adjustment to the ORNANE bond issue for -€0.6 million euros.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2018

ASSETS € millions	30/06/2018 IFRS 6-month period	Restatement  of joint ventures	30/06/2018 Operational  reporting		31/12/2017 Restated operational reporting
Goodwill	1,474.1	-	1,474.1		1,213.4
Other non-current assets	454.0	0.2	454.2		470.4
Equity-accounted investments	30.0	(30.0)	0.0		24.2
Total non-current assets	1,958.2	(29.7)	1,928.4		1,707.9
Net WCR	902.9	68.2	971.1		816.6
Total assets	2,861.0	38.4	2,899.5		2,524.5
LIABILITIES AND EQUITY € millions	30/06/2018 IFRS	Restatement  of joint ventures	30/06/2018 Operational  reporting		31/12/2017 Restated operational reporting
Share capital and reserves	1,511.6	(0.0)	1,511.6		1,480.0
Net profit for the period	150.5	-	150.5		182.7
Equity attributable to equity holders of the parent company	1,662.1	(0.0)	1,662.1		1,662.7
Non-controlling interests	6.9	(0.0)	6.9		6.0
Total equity	1,669.0	(0.0)	1,669.0		1,668.8
Net debt	989.2	31.0	1,020.2		647.0
Provisions	128.5	2.1	130.5		132.8
Net deferred taxes	74.3	5.4	79.7		75.9
Total liabilities and equity	2,861.0	38.4	2,899.5		2,524.5

NET DEBT AT 30 JUNE 2018

€ millions	30/06/2018 IFRS	Restatement  of joint ventures	30/06/2018 Operational  reporting		31/12/2017 Restated operational reporting
Bond issues (incl. accrued interest and arrangement costs)	902.9	-	902.9		703.4
Loans and borrowings	556.6	33.8	590.4		454.0
Loans and borrowings	1,459.5	33.8	1,493.3		1,157.4
Other borrowings and other financial receivables	(51.2)	57.3	6.1		2.6
Cash and cash equivalents	(714.6)	(75.2)	(789.8)		(836.2)
Bank overdraft facilities	14.1	15.1	29.2		18.9
Net cash and cash equivalents	(700.5)	(60.1)	(760.6)		(817.2)
Total net financial debt before IFRS 16	707.8	31.0	738.8		342.7
IFRS 16 lease liabilities	281.4	-	281.4		304.3
Total net debt	989.2	31.0	1,020.2		647.0

STATEMENT OF CASH FLOWS

€ millions	30/06/2018 IFRS 6-month period	Restate-ment  of joint ventures	30/06/2018 Operational  reporting		30/06/2017 Restated operational reporting
Consolidated net profit	152.0	-	152.0		55.3
Elimination of non-cash income and expenses	(36.4)	(5.8)	30.7		55.6
Cash flow from operating activities after interest and tax expenses	115.6	5.8	121.4		110.9
Elimination of net interest expense/(income)	19.9	0.2	20.1		18.9
Elimination of tax expense, including deferred taxes	37.4	2.7	40.2		37.7
Cash flow from operating activities before interest and tax expenses	172.9	8.7	181.6		167.5
Change in operating working capital	(150.6)	1.4	(149.2)		(9.2)
Dividends received from equity-accounted investments	2.6	(2.3)	0.3		-
Interest paid	(12.5)	(0.2)	(12.8)		(9.9)
Net tax paid	(41.8)	0.1	(41.7)		(50.2)
Net cash flow from/(used in) operating activities	(29.5)	7.7	(21.8)		98.2
Net cash flow from/(used in) net operating investments	(14.5)	(0.0)	(14.5)		(15.4)
Free cash flow	(44.0)	7.7	(36.3)		82.7
Acquisitions of subsidiaries and other changes in scope	(47.6)	0.1	(47.6)		( 1.7)
Other net financial investments	(2.8)	(1.0)	(3.8)		( 0.9)
Net cash flow from/(used in) financial investing activities	(50.5)	(0.9)	(51.4)		(2.6)
Dividends paid to equity holders of the parent company	(140.3)	-	(140.3)		(132.7)
Other payments to/(from) shareholders	(35.4)	-	(35.4)		(3.8)
IFRS 16 lease liability payments	(32.5)	-	(32.5)		(41.2)
Change in financial liabilities and receivables (net)	237.2	2.3	239.5		62.4
Net cash flow from/(used in) financing activities	29.0	2.3	31.3		(115.3)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(0.2)	-	(0.2)		0.5
Change in cash and cash equivalents	(65.7)	9.1	(56.6)		(34.6)

HALF-YEAR FIGURES BY DIVISION

Current operating profit

	2018		2017 (restated)				2017 (published)
€ millions	H1		FY	H2	H1		FY	H2	H1
Individual Clients	112.0		320.6	212.0	108.6
o/w Residential Real Estate	74.8		214.8	145.4	69.4		247.0	160.6	86.4
o/w Real Estate Services to Individuals	37.1		105.8	66.5	39.2
Commercial Clients	35.5		60.5	37.0	23.5
o/w Commercial Real Estate	37.5		61.0	34.8	26.1		70.4	39.9	30.4
o/w Real Estate Services to Companies	(2.0)		(0.4)	2.2	(2.6)
Services	-		-	-	-		47.0	28.3	18.7
Other activities	(11.6)		(43.2)	(31.9)	(11.3)		(43.9)	(32.2)	(11.7)
GROUP	135.8		337.9	217.1	120.8		320.5	196.7	123.9

EBITDA

	2018		2017 (restated)				2017 (published)
€ millions	H1		FY	H2	H1		FY	H2	H1
Individual Clients	151.2		416.5	263.8	152.7
o/w Residential Real Estate	88.9		239.2	161.0	78.2		263.8	172.3	91.6
o/w Real Estate Services to Individuals	62.3		177.2	102.8	74.5
Commercial Clients	37.9		67.2	40.6	26.6
o/w Commercial Real Estate	37.4		62.2	35.3	27.0		70.7	39.9	30.8
o/w Real Estate Services to Companies	0.5		4.9	5.3	(0.4)
Services	-		-	-	-		62.0	38.1	23.9
Other activities	(2.9)		(23.1)	(18.4)	(4.7)		(28.1)	(20.7)	(7.4)
GROUP	186.2		460.5	286.0	174.6		368.5	229.6	138.9

ANNEX 2: IFRS

The following tables present the income statement, statement of financial position, net debt and statement of cash flows for the first half of 2018. The 2017 data has been restated by applying IFRS 15 and by reclassifying the CVAE levy under "Income taxes" so as to improve its comparability. The IFRS 16 impact has not been restated for 2017 because the new standard has not been applied retrospectively.

CONSOLIDATED INCOME STATEMENT - 30 JUNE 2018

€ millions		30/06/2018 IFRS		30/06/2017 IFRS restated
Revenue		1,488.2		1,357.0
Operating expenses		(1,310.7)		(1,232.0)
Dividends received from equity-accounted investments		2.3		2.4
EBITDA		179.8		127.3
IFRS 16 depreciation		(31.1)		-
Depreciation, amortisation and impairment of fixed assets		(12.6)		(11.1)
Net change in provisions		3.2		3.4
Share-based payments		(5.6)		(5.4)
Borrowing costs directly attributable to property developments, transferred from inventory		(3.0)		(2.0)
Dividends received from equity-accounted investments		(2.3)		(2.4)
Current operating profit		128.4		109.8
Remeasurement of equity-accounted investments following acquisition of control		79.2		-
Operating profit		207.6		109.8
Share of profit from equity-accounted investments		4.5		5.0
Operating profit after share of profit from equity-accounted investments		212.1		114.8
Cost of net financial debt		(19.9)		(14.1)
Other financial income/(expense)		2.2		(0.6)
Net financial income/(expense)		(17.6)		(14.7)
Pre-tax recurring profit/(loss)		194.5		100.1
Income taxes		(41.5)		(38.3)
Share of profit/(loss) from other equity-accounted investments		(0.9)		(5.1)
Consolidated net profit/(loss)		152.0		56.7
Attributable to non-controlling interests		1.6		1.8
Attributable to equity holders of the parent company		150.5		54.8
(in euros)
Earnings per share		2.68		1.00

CONSOLIDATED STATEMENT OF FINANCIAL POSITION - 30 JUNE 2018

ASSETS € millions		30/06/2018 IFRS		31/12/2017 IFRS restated
Goodwill		1,474.1		1,213.4
Other non-current assets		454.0		171.5
Equity-accounted investments		30.0		51.9
Total non-current assets		1,958.2		1,436.9
Net WCR		902.9		744.1
Total assets		2,861.0		2,181.0
LIABILITIES AND EQUITY € millions		30/06/2018 IFRS		31/12/2017 IFRS restated
Share capital and reserves		1,511.6		1,481.2
Net profit for the period		150.5		185.3
Equity attributable to equity holders of the parent company		1,662.1		1,666.5
Non-controlling interests		6.9		6.1
Total equity		1,669.0		1,672.7
Net debt		989.2		305.5
Provisions		128.5		132.0
Net deferred taxes		74.3		70.8
Total liabilities and equity		2,861.0		2181.0

CONSOLIDATED NET DEBT AT 30 JUNE 2018

€ millions		30/06/2018 IFRS		31/12/2017 IFRS restated
Bond issues (incl. accrued interest and arrangement costs)		902.9		703.4
Loans and borrowings		556.6		429.0
Loans and borrowings		1,459.5		1,132.3
Other borrowings and other financial receivables		(51.2)		(60.6)
Cash and cash equivalents		(714.6)		(776.4)
Bank overdraft facilities		14.1		10.2
Net cash and cash equivalents		(700.5)		(766.2)
Total net financial debt before IFRS 16		707.8		305.5
IFRS 16 lease liabilities		281.4
Total net debt		989.2		305.5

STATEMENT OF CASH FLOWS FOR THE SIX MONTHS TO 30 JUNE 2018

€ millions	30/06/2018 IFRS 6-month period		30/06/2017 IFRS restated
Consolidated net profit	152.0		56.7
Elimination of non-cash income and expenses	(36.4)		11.2
Cash flow from operating activities after interest and tax expenses	115.6		67.9
Elimination of net interest expense/(income)	19.9		14.1
Elimination of tax expense, including deferred taxes	37.4		35.2
Cash flow from operating activities before interest and tax expenses	172.9		117.1
Change in operating working capital	(150.6)		( 15.5)
Dividends received from equity-accounted investments	2.6		2.4
Interest paid	(12.5)		(9.6)
Net tax paid	(41.8)		(50.0)
Net cash flow from/(used in) operating activities	(29.5)		44.4
Net cash flow from/(used in) operating investments (net)	(14.5)		(15.4)
Free cash flow	(44.0)		29.0
Acquisitions of subsidiaries and other changes in scope	(47.6)		(1.6)
Other net financial investments	(2.8)		(0.9)
Net cash flow from/(used in) financial investing activities	(50.5)		(2.5)
Capital increase	(140.3)		(132.7)
Other payments to/(from) shareholders	(35.4)		(3.8)
IFRS 16 lease liability payments	(32.5)		-
Change in financial borrowings and receivables (net)	237.2		64.0
Net cash from/(used in) financing activities	29.0		(72.4)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(0.2)		0.5
Change in cash and cash equivalents	(65.7)		(45.5)

ANNEX 3: RESTATEMENTS OF 2017 OPERATIONAL REPORTING

Nexity has applied the new IFRS 15 and IFRS 16 accounting standards since 1 January 2018. To provide greater clarity concerning relative operational performance in 2018, Nexity presents below the Group's principal business and financial indicators for the first half of 2017 restated in line with these new standards.

As part of the growth strategy adopted by Nexity in 2017 to become a real estate services platform, the Group is now using its client-centred organisation in its financial communications (with two main divisions: Individual Clients and Commercial Clients).

As such, the following reclassifications have taken place:

• The former Services division has been broken down into two businesses (Real Estate Services to Individuals and Real Estate Services to Companies), reclassified under the Individual Clients and Commercial Clients divisions, respectively; and
• The Group's business in the marketing and selling of residential developments on behalf of third parties, carried out under the iSelection brand; activities involving the division of ownership of existing property, carried out under the PERL brand; real estate brokerage activities, carried out by the Nexity Solutions Crédit subsidiary; and financial advisory activities, carried out by the Nexity Patrimoine subsidiary have all been transferred from Residential Real Estate to Real Estate Services to Individuals within the Individual Clients division.

In addition, the CVAE^[25] levy has now been shown in corporate income tax since 1 January 2018 because it qualifies as an income tax under IAS 12.

Nexity now also uses Earnings per share before non-recurring items to provide a more accurate reflection of operating performance per share.

Earnings per share before non-recurring items reflects the Group share of net profit restated for non-recurring items such as the repayment of the 3% dividend tax claimed in 2017, and with effect from 2018, change in fair value adjustments in respect of the ORNANE bond issue and items included in non-current operating profit (any goodwill impairment losses, remeasurement of equity-accounted investments following the acquisition of control).

€ millions	31/12/2017 Restated operational reporting		30/06/2017 Restated operational reporting
Revenue	3,571.3		1,412.6
EBITDA	460.6		174.6
Current operating profit	337.9		120.8
Net financial income/(expense)	(38.5)		(19.5)
Income taxes*	(112.8)		(40.8)
Share of profit/(loss) from other equity-accounted investments	(4.9)		(5.1)
Net profit before non-recurring items*	181.8		55.3
Attributable to non-controlling interests	6.0		1.9
Attributable to equity holders of the parent company	175.8		53.4
(in euros)
Earnings per share before non-recurring items*	3.17		0.97
* Restated for the repayment of the 3% dividend tax

RESTATED INCOME STATEMENT FOR THE FINANCIAL YEAR TO 31 DECEMBER 2017

€ millions	31/12/2017 Operational  reporting  (reported)	Impact of IFRS 15	Simulated impact of IFRS 16		Reclassifi- cation of CVAE levy	31/12/2017 Restated operational reporting
Revenue	3,506.1	65.1	-		-	3,571.3
Operating expenses	(3,137.7)	(65.0)	79.5		12.5	(3,110.7)
Dividends received from equity-accounted investments	-	-	-		-	-
EBITDA	368.5	0.1	79.5		12.5	460.6
IFRS 16 depreciation	-	-	(74.7)		-	(74.7)
Depreciation, amortisation and impairment of fixed assets	(24.4)	-	-		-	(24.4)
Net change in provisions	(4.2)	-	-		-	(4.2)
Share-based payments	(14.3)	-	-		-	(14.3)
Borrowing costs directly attributable to property developments, transferred from inventory	(5.1)	-	-		-	(5.1)
Dividends received from equity-accounted investments	-	-	-		-	-
Current operating profit	320.5	0.1	4.8		12.5	337.9
Cost of net financial debt	(30.4)	-	(9.0)		-	(39.4)
Other financial income/(expense)	0.9	-	-		-	0.9
Net financial income/(expense)	(29.5)	-	(9.0)		-	(38.5)
Pre-tax recurring profit/(loss)	291.0	0.1	(4.2)		12.5	299.4
Income taxes	(101.7)	(0.0)	1.4		(12.5)	(112.8)
Repayment of 3% dividend tax	6.9	-	-		-	6.9
Share of profit/(loss) from other equity-accounted investments	(4.9)	-	-		-	(4.9)
Consolidated net profit/(loss)	191.3	0.1	(2.7)		-	188.6
Attributable to non-controlling interests	5.7	0.3	-		-	6.0
Attributable to equity holders of the parent company	185.6	(0.2)	(2.7)		-	182.7
(in euros)
Net earnings per share	3.35					3.30
Net earnings per share before non-recurring items:
Net profit before non-recurring items*	184.4	0.1		(2.7)	-		181.8
Attributable to non-controlling interests	5.7	0.3		-	-		6.0
Attributable to equity holders of the parent company	178.7	(0.2)		(2.7)	-		175.8
(in euros)
Net earnings per share before non-recurring items*	3.22						3.17
* Restated for the repayment of the 3% dividend tax

RESTATED INCOME STATEMENT - 30 JUNE 2017

€ millions	30/06/2017 Operational  reporting  (reported)	Impact of IFRS 15	Simulated impact of IFRS 16	Reclassification of CVAE levy	30/06/2017 Restated operational reporting
Revenue	1,464.5	(51.9)	-	-	1,412.6
Operating expenses	(1,325.6)	40.8	41.2	5.6	(1,238.0)
Dividends received from equity-accounted investments	-	-	-	-	-
EBITDA	138.9	(11.1)	41.2	5.6	174.6
IFRS 16 depreciation	-	-	(38.7)	-	(38.7)
Depreciation, amortisation and impairment of fixed assets	(11.1)	-	-	-	(11.1)
Net change in provisions	3.5	-	-	-	3.5
Share-based payments	(5.4)	-	-	-	(5.4)
Borrowing costs directly attributable to property developments, transferred from inventory	(2.0)	-	-	-	(2.0)
Dividends received from equity-accounted investments	-	-	-	-	-
Current operating profit	123.9	(11.1)	2.4	5.6	120.8
Cost of net financial debt	(14.3)	-	(4.6)	-	(18.9)
Other financial income/(expense)	(0.6)	-	-	-	(0.6)
Net financial income/(expense)	(14.9)	-	(4.6)	-	(19.5)
Pre-tax recurring profit/(loss)	108.9	(11.1)	(2.2)	5.6	101.3
Income taxes	(39.7)	4.0	0.8	(5.9)	(40.8)
Share of profit/(loss) from other equity-accounted investments	(5.1)	-	-	-	(5.1)
Consolidated net profit/(loss)	64.1	(7.0)	(1.4)	(0.3)	55.3
Attributable to non-controlling interests	2.1	(0.2)	-	-	1.9
Attributable to equity holders of the parent company	62.0	(6.8)	(1.4)	(0.3)	53.4
(in euros)
Earnings per share	1.13				0.97
Net earnings per share before non-recurring items:
Net profit/(loss) before non-recurring items	64.1	(7.0)	(1.4)	(0.3)	55.3
Attributable to non-controlling interests	2.1	(0.2)	-	-	1.9
Attributable to equity holders of the parent company	62.0	(6.8)	(1.4)	(0.3)	53.4
(in euros)
Net earnings per share before non-recurring items	1.13				0.97

REVENUE^[26]

€ millions	Operational  reporting  (reported)	Reclassification of Services (Individual, Commercial)	Reclassification of operational segments	Operational reporting (new segmentation)	Impact of IFRS 15	Impact of IFRS 16	Reclassification of CVAE levy	Restated operational reporting
H1 2017
Individual Clients	1,073.6	216.5	-	1,290.1	(37.4)	-	-	1,252.7
Residential Real Estate	1,073.6	-	(151.1)	922.5	(36.2)	-	-	886.3
Real Estate Services to Individuals	-	216.5	151.1	367.6	(1.2)	-	-	366.4
Commercial Clients	142.4	29.1	-	171.5	(14.5)	-	-	157.0
Commercial Real Estate	142.4	-	-	142.4	(14.4)	-	-	128.0
Real Estate Services to Companies	-	29.1	-	29.1	(0.1)	-	-	29.0
Services	245.6	(245.6)	-	-	-	-	-	-
Other activities	2.8	-	-	2.8	-	-	-	2.8
Revenue	1,464.5	-	-	1,464.5	(51.9)	-	-	1,412.6
FY 2017
Individual Clients	2,597.5	443.5	-	3,041.0	119.5	-	-	3,160.4
Residential Real Estate	2,597.5		(369.3)	2,228.2	121.9	-	-	2,350.0
Real Estate Services to Individuals	-	443.5	369.3	812.8	(2.4)	-	-	810.4
Commercial Clients	397.2	63.7	-	460.9	(54.3)	-	-	406.6
Commercial Real Estate	397.2	-	-	397.2	(54.1)	-	-	343.1
Real Estate Services to Companies	-	63.7	-	63.7	(0.3)	-	-	63.4
Services	507.2	(507.2)	-	-	-	-	-	-
Other activities	4.3	-	-	4.3	-	-	-	4.3
Revenue	3,506.1	-	-	3,506.1	65.1	-	-	3,571.3

EBITDA

€ millions	Operational  reporting  (reported)	Reclassification of Services (Individual, Commercial)	Reclassification of operational segments	Operational reporting (new segmentation)	Impact of IFRS 15	Impact of IFRS 16	Reclassification of CVAE levy	Restated operational reporting
H1 2017
Individual Clients	91.6	25.6	-	117.2	(6.4)	37.2	4.7	152.7
% of revenue	8.5%			9.1%				12.2%
o/w Residential Real Estate	91.6		(15.6)	75.9	(6.4)	6.4	2.3	78.2
% of revenue	8.5%			8.2%				8.8%
o/w Real Estate Services to Individuals	-	25.6	15.6	41.3	-	30.8	2.4	74.5
% of revenue				11.2%				20.3%
Commercial Clients	30.8	(1.8)	-	29.1	(4.7)	1.5	0.7	26.6
% of revenue	21.6%			17.0%				16.9%
o/w Commercial Real Estate	30.8	-	-	30.8	(4.7)	0.5	0.3	27.0
% of revenue	21.6%			21.6%				21.1%
o/w Real Estate Services to Companies	-	(1.8)	-	(1.8)		1.0	0.3	(0.4)
% of revenue				-6.0%				-1.4%
Services	23.9	(23.9)		-	-	-	-	-
% of revenue	9.7%			-				-
Other activities	(7.4)	-	-	(7.4)	-	2.4	0.2	(4.7)
EBITDA in H1 2017	138.9	-	-	138.9	(11.1)	41.2	5.6	174.6
% of revenue	9.5%			9.5%				12.4%
FY 2017
Individual Clients	263.8	59.8	-	323.7	10.4	72.0	10.4	416.5
% of revenue	10.2%			10.6%				13.2%
o/w Residential Real Estate	263.8		(53.8)	210.0	10.4	13.7	5.1	239.2
% of revenue	10.2%			9.4%				10.2%
o/w Real Estate Services to Individuals	-	59.8	53.8	113.7		58.3	5.3	177.2
% of revenue				14.0%				21.9%
Commercial Clients	70.7	2.1	-	72.9	(10.3)	3.0	1.6	67.2
% of revenue	17.8%			15.8%				16.5%
o/w Commercial Real Estate	70.7	-	-	70.7	(10.3)	1.0	0.8	62.2
% of revenue	17.8%			17.8%				18.1%
o/w Real Estate Services to Companies	-	2.1	-	2.1		2.0	0.8	4.9
% of revenue				3.3%				7.8%
Services	62.0	(62.0)		-	-	-	-	-
% of revenue	12.2%			0.0%				0.0%
Other activities	(28.1)	-	-	(28.1)	-	4.5	0.5	(23.1)
FY 2017 EBITDA	368.5	-	-	368.5	0.1	79.5	12.5	460.6
% of revenue	10.5%			10.5%				12.9%

CURRENT OPERATING PROFIT

€ millions	Operational  reporting  (reported)	Reclassification of Services (Individual, Commercial)	Reclassification of operational segments	Operational reporting (new segmentation)	Impact of IFRS 15	Impact of IFRS 16	Reclassification of CVAE levy	Restated operational reporting
H1 2017
Individual Clients	86.4	21.8	-	108.2	(6.4)	2.1	4.7	108.6
% of revenue	8.0%			8.4%				8.7%
o/w Residential Real Estate	86.4		(13.4)	73.0	(6.4)	0.5	2.3	69.4
% of revenue	8.0%			7.9%				7.8%
o/w Real Estate Services to Individuals	-	21.8	13.4	35.2		1.7	2.4	39.2
% of revenue				9.6%				10.7%
Commercial Clients	30.4	(3.0)		27.4	(4.7)	0.1	0.7	23.5
% of revenue	21.4%			16.0%				15.0%
o/w Commercial Real Estate	30.4			30.4	(4.7)	0.0	0.3	26.1
% of revenue	21.4%			21.4%				20.4%
o/w Real Estate Services to Companies	-	(3.0)		(3.0)		0.1	0.3	(2.6)
% of revenue				-10.5%				-9.1%
Services	18.7	(18.7)		-	-	-	-	-
% of revenue	7.6%			-				-
Other activities	(11.7)			(11.7)	-	0.2	0.2	(11.3)
Current operating profit in H1 2017	123.9	-	-	123.9	(11.1)	2.4	5.6	120.8
% of revenue	8.5%			8.5%				8.6%
FY 2017
Individual Clients	247.0	48.4	-	295.4	10.4	4.4	10.4	320.6
% of revenue	9.5%			9.7%				10.1%
o/w Residential Real Estate	247.0		(48.7)	198.3	10.4	0.9	5.1	214.8
% of revenue	9.5%			8.9%				9.1%
o/w Real Estate Services to Individuals	-	48.4	48.7	97.1		3.5	5.3	105.8
% of revenue				11.9%				13.1%
Commercial Clients	70.4	(1.3)		69.0	(10.3)	0.2	1.6	60.5
% of revenue	17.7%			15.0%				14.9%
o/w Commercial Real Estate	70.4			70.4	(10.3)	0.1	0.8	61.0
% of revenue	17.7%			17.7%				17.8%
o/w Real Estate Services to Companies	-	(1.3)		(1.3)		0.1	0.8	(0.4)
% of revenue				-2.1%				-0.7%
Services	47.0	(47.0)		-	-	-	-	-
% of revenue	9.3%			-				-
Other activities	(43.9)			(43.9)	-	0.3	0.5	(43.2)
Current operating profit in FY 2017	320.5	-	-	320.5	0.1	4.8	12.5	337.9
% of revenue	9.1%			9.1%				9.5%

RESTATED STATEMENT OF FINANCIAL POSITION

ASSETS € millions	31/12/2017 Operational  reporting  (reported)	Impact of IFRS 15	Simulated impact of IFRS 16	31/12/2017 Restated operational reporting
Goodwill	1,213.4	-	-	1,213.4
Other non-current assets	170.2	-	300.1	470.4
Equity-accounted investments	24.2	-	-	24.2
Total non-current assets	1,407.8	-	300.1	1,707.9
Net WCR	773.6	43.0	-	816.6
Total assets	2,181.4	43.0	300.1	2,524.5
LIABILITIES AND EQUITY € millions	31/12/2017 Operational  reporting	Impact of IFRS 15	Simulated impact of IFRS 16	31/12/2017 Restated operational reporting
Share capital and reserves	1,452.9	27.1		1,480.0
Net profit for the period	185.6	(0.2)	(2.7)	182.7
Equity attributable to equity holders of the parent company	1,638.6	26.9	(2.7)	1,662.7
Non-controlling interests	4.9	1.2	-	6.0
Total equity	1,643.4	28.1	(2.7)	1,668.8
Net debt	342.7	-	304.3	647.0
Provisions	132.8	-	-	132.8
Net deferred taxes	62.5	14.9	(1.4)	75.9
Total liabilities and equity	2,181.4	43.0	300.1	2,524.5

WORKING CAPITAL REQUIREMENT BROKEN DOWN BY SEGMENT

€ millions	Operational  reporting  (reported)	Reclassification of Services (Individual, Commercial)	Reclassification of operational segments	Operational reporting (new segmentation)	Impact of IFRS 15	Impact of IFRS 16	Reclassification of CVAE levy	Restated operational reporting
FY 2017
Individual Clients	826.0	(45.6)	-	780.5	25.4	-	-	805.9
Residential Real Estate	826.0		(116.5)	709.5	25.4	-	-	734.9
Real Estate Services to Individuals	-	(45.6)	116.5	71.0		-	-	71.0
Commercial Clients	(44.0)	5.6	-	(38.4)	17.5	-	-	(20.9)
Commercial Real Estate	(44.0)			(44.0)	17.5	-	-	(26.5)
Real Estate Services to Companies	-	5.6		5.6		-	-	5.6
Services	(40.0)	40.0		-	-	-	-	-
Other activities	28.4			28.4		-	-	28.4
Corporate income tax	3.2			3.2	-	-	-	3.2
WCR at 31 December 2017	773.6	-	-	773.6	43.0	-	-	816.6

BACKLOG

€ millions	Operational  reporting  (reported)	Reclassification of operational segments	Operational reporting (new segmentation)	Impact of IFRS 15	Impact of IFRS 16	Reclassification of CVAE levy	Restated operational reporting
H1 2017
Residential Real Estate - New homes	3,489	(129)	3,360	(317)			3,042
Residential Real Estate - Subdivisions	255		255	(55)			200
Residential Real Estate backlog	3,744	(129)	3,615	(372)			3,243
Commercial Real Estate backlog	482		482	(137)			345
Total Group backlog at 30 June 2017	4,226	(129)	4,097	(509)		-	3,587
FY 2017
Residential Real Estate - New homes	3,945	(136)	3,810	(475)	-		3,335
Residential Real Estate - Subdivisions	246	-	246	(55)	-		191
Residential Real Estate backlog	4.191	(136)	4,056	(530)	-		3,526
Commercial Real Estate backlog	562	-	562	(97)			465
Total Group backlog at 31 December 2017	4,754	(136)	4,618	(627)	-		3,991

GLOSSARY

Property Management for Individuals (PMI): management of rented properties on behalf of individual clients (management for the owner of all relations with the tenant, management of the sale of the property if applicable) as well as the management of the common areas of apartment buildings (as a managing agent) on behalf of condominium owners.

Development backlog: corresponds to the Group's already secured future revenue, expressed in euros, for its Residential Real Estate and Commercial Real Estate businesses. The backlog includes reservations for which notarised agreements have not yet been signed and the portion of revenue remaining to be generated on units for which notarised agreements have already been signed (portion remaining to be built).

Free cash flow: corresponds to the cash generated by operating activities after taking into account taxes paid, financial expenses, 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 Residential or Commercial Real Estate developments undertaken with another developer (co-developments).

EBITDA: defined by Nexity as equal to current operating profit before depreciation, amortisation and impairment of fixed assets (including lease payments restated under IFRS 16), 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.

Gearing: corresponds to net debt divided by consolidated equity.

Land bank: represents the amount of projects in France for which the Group has acquired development rights, before obtaining a building permit and in some cases planning permissions, expressed as an amount recognised within the working capital requirement.

Business potential for new homes: corresponds to the total volume of potential business at any given moment, expressed as a number of units, within future projects 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 corresponding to project phases not yet marketed on purchased land, and projects not yet launched associated with land secured under options.

Business potential for Commercial Real Estate: corresponds to the total volume of potential business at any given moment, expressed as estimated revenue excluding VAT, within future projects validated by the Group's Committee, under options or purchased land, 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 as well as its future supply.

Order intake - Commercial Real Estate: the total of selling prices excluding VAT as stated in definitive agreements for Commercial Real Estate programmes, expressed in euros for a given period (notarised agreements 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.

Reservations by value (or expected revenue) - Residential Real Estate: the net total of selling prices including VAT as stated in reservation agreements for development programmes, expressed in euros for a given period, after deducting all reservations cancelled during the period.

Current operating profit: 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.

Net profit/(loss) before non-recurring items: corresponds to net profit attributable to equity holders of the parent company restated for non-current items such as the repayment of the 3% dividend tax recognised in 2017, and with effect from 2018, change in fair value adjustments in respect of the ORNANE bond issue and items included in non-current operating profit (any goodwill impairment losses, remeasurement of equity-accounted investments following the assumption of control).

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The financial data and indicators used in this press release - including forward-looking information - are based on Nexity's operational reporting, with joint ventures proportionately consolidated. The 2017 data has been restated to improve comparability, and a breakdown is provided in Annex 3 of this press release.

[1] Net debt totalled €1,020 million as of 30 June 2018, of which €281 million corresponding to leases accounted for under IFRS 16.

^[2] The balance includes 915 subdivision reservations and 115 international reservations.

^[3] Compared with growth of around 10% in the guidance provided with the annual 2017 results (20 February 2018), upward revision mostly due to Ægide-Domitys consolidation.

^[4] Source: ECLN - Conjoncture de l'immobilier (Results for the first quarter of 2018 - 28 June 2018).

^[5] Source: Observatoire Crédit Logement - 18 June 2018.

^[6] Time to market: available market supply / reservations for the last 12 months, expressed in months.

^[7] See the glossary on page 33.

^[8] At current structure and exchange rates, the churn rate was 1.7% at 30 June 2018, versus 1.2% at 30 June 2017.

^[9] FNAIM annual overview - 10 January 2018.

^[10] Sources of market data: CBRE MarketView: Paris Region Office and France Investment - Q2 2018.

^[11] See the glossary on page 33.

^[12] Floor areas are provided for information purposes only and may be subject to adjustment once administrative authorisations have been obtained.

^[13] See the glossary on page 33.

^[14] Based on average number of shares outstanding over the period.

^[15] Nexity defines EBITDA as equal to current operating profit before depreciation, amortisation and impairment of fixed 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. See the glossary on page 33.

^[16] Automatically renewable leases and those with a term of less than one year are excluded from the scope of IFRS 16, and are not restated.

^[17] See the glossary on page 33.

^[18] Contribution sur la valeur ajoutée des entreprises (contribution levied on business value-added).

^[19] See the glossary on page 33.

^[20] Compared with growth of around 10% in the guidance provided with the annual 2017 results (20 February 2018), upward revision mostly due to Ægide-Domitys consolidation.

^[21] Or 148,000/157,000 reservations for both the retail segment and bulk sales.

^[22] Subject to the decision of Nexity's Board of Directors and approval at its Shareholders' Meeting.

^[23] See press release of 19 June 2018.

^[24] Excluding the impact of IFRS 16 for both aggregates.

^[25] Contribution sur la valeur ajoutée des entreprises (contribution levied on business value-added).

^[26] Revenue generated by Residential Real Estate and Commercial Real Estate 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 incurred production costs.

PR 2018 Half-year results

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Nexity via Globenewswire