Nexity 2023 half-year results

MODEL PROVES ROBUST IN HIGHLY CHALLENGING REAL ESTATE MARKETS
DEBT UNDER CONTROL, NEW OUTLOOK FOR 2023

Business activity:         

• New home reservations recorded in France by Nexity down 20% by volume and 28% by value, with the stronger performance of bulk sales partly offsetting a slowdown in retail sales
• Market estimated at less than 100,000 reservations for full-year 2023, versus 124,000 in 2022 (down 34% in Q1 2023)¹

Half-year financial results:         

• Revenue up 4% compared with H1 2022²
• Operating profit of €82m, showing a limited decline in a very challenging market
• Net debt under control: debt ratio moderate, at 2.5x EBITDA³, substantially below bank covenant limits
• No significant repayments due before 2025 – Undrawn €520m credit facility

Revised outlook for 2023⁴ :

• Expected 2023 revenue of €4.3 billion (excluding international business), with operating profit of €250m
• Priority focus on controlling net debt and cash to maintain the Group’s agility
• Dividend payable in 2024 will reflect the level of net profit achieved in 2023⁵
  
  

Outlook:

• Faster implementation of the strategic plan and adaptation to new priorities thanks to the unique cross-expertise of the Group’s development and services businesses
• Uncertainty over how long the unfavourable real estate environment will last mean the financial targets announced in September 2022⁶ will need to be revised in the course of 2024

VÉRONIQUE BÉDAGUE, CHAIRWOMAN AND CHIEF EXECUTIVE OFFICER, COMMENTED:

“In the first half of 2023, Nexity once again proved its strength, reporting slightly higher revenue and a limited decrease in operating profit in a very challenging market.
The real estate sector is facing a crisis of an intensity rarely seen before: stubborn inflation; lower solvency for our individual clients driven by the surge in interest rates, which are set to continue their rise for some time; and the shift by institutional investors to asset classes offering higher yields are all leading us to adapt our management and more rapidly transform our range of services and solutions.
Given the persistently adverse economic environment, Nexity is revising its outlook for 2023 and has made specific adjustments to navigate this paradigm shift. First of all, we are bolstering our operational efficiency, keeping tighter control over our working capital requirement (WCR) and our debt, with the recent disposal of our subsidiary in Poland, as previously announced, which will reduce our debt by €100 million, together with the disposal of our subsidiary in Portugal, which is under way. We have also put in place a proactive plan to reduce our overhead costs. In addition, we are taking a more active approach to the management of our real estate development commitments, with the suspension of land bank commitments and by requiring higher pre-sales rates for our programmes before the land is purchased.
The multiple factors behind the crisis we are currently facing have raised my confidence in the relevance of our Imagine 2026 strategic plan, and we are therefore accelerating its implementation. Recent developments such as our alliance with French retailer Carrefour and our partnership with TopHat in modular construction show just how quickly we are moving to become the leader in urban regeneration. Upcoming initiatives will showcase our comprehensive range of services and solutions as an global real estate operator.
Backed by the complementary expertise of our Development and Services businesses, and with a backlog representing 2 years of revenue from development activities, I am fully confident in our ability to deliver solid results over the long term.”
KEY FIGURES FOR THE FIRST HALF OF 2023

Business activity – France	H1 2022	H1 2023	Change vs H1 2022
Reservations: Residential Real Estate
Volume	7,639 units	6,085 units	-20%
Value	€1,756m	€1,260m	-28%
	31 Dec 2022	30 Jun 2023	Change vs Dec 2022
Development backlog	€6.1bn	€5.7bn	-7%
Financial results (in €m)	H1 2022	H1 2023	Change vs H1 2022
Revenue	1,964	2,043	+4%
Operating profit	110	82	-25%
Operating margin (as % of revenue)	5.6%	4.0%	-160 bps
Group share of net profit	54	9
	31 Dec 2022	30 Jun 2023
Net debt1	820	1,012
x EBITDA after lease payments	2.1x	2.7x

¹ Net debt before lease liabilities

RESIDENTIAL REAL ESTATE DEVELOPMENT

Business activity
New home reservations in the period to end-June 2023 totalled 6,085 units (down 20% relative to end-June 2022), giving revenue of €1,260 million (down 28%). As expected, in the second quarter retail sales continued the trend observed in the previous two quarters, down 41% at end-June 2023 compared with the first half of 2022, due to the rapid rise in interest rates for mortgages, which affected the solvency of Nexity’s individual clients.
However, Nexity’s robust partnerships it has built up with private and public landlords translated into substantially higher bulk sales in the first half (up 16% by volume compared with the first half of 2022).
The difference between the change in reservations by volume and by value was mainly due to the product mix, with a higher proportion of sales to social housing operators, which accounted for 42% of all orders in H1 2023.

At end-June 2023, the decrease in supply for sale (down 7% compared with year-end 2022 at 9,409 units) and the stability of take-up periods (6.9 months versus 6.8 months at year-end 2022) reflect the level of control over operational risks. The Group’s supply for sale is low-risk, with only 35% of supply under construction and fewer than 100 completed homes in inventory.

Financial performance

Restated figures (€m)	H1 2022(1)	H1 2023	2023/2022 Change
Revenue	1,381	1,370	-1%
Operating profit	65	46	-29%
Margin (as % of revenue)	4.7%	3.4%	-130 bps
	31 Dec 2022	30 Jun 2023
Working capital requirement (WCR)	1,199	1,227

⁽¹⁾ Reclassification of Villes & Projets (historically classified in Other Activities division) in Residential Real Estate Development

Revenue in the first half of 2023 saw a slight decline (down 1%) to €1,370 million, due mainly to the slower pace of signings for notarial deeds of sale. On a like-for-like basis (excluding Angelotti), revenue to end-June 2023 was down 6% year on year.
Operating profit in the first half of the year was €46 million, 29% lower than the period to end-June 2022 and representing a margin of 3.4%, down 130 basis points. This change was due to measures taken to boost sales, higher construction costs weighing on the budgets of certain programmes under construction, and the slowdown in business and postponement of programmes, which has affected the balance of overhead costs.

The working capital requirement remained relatively stable (up €28 million), totalling €1.2 billion, thanks to optimised management.

Outlook
The French market for new homes, which recorded a sharp decline of 34% at end-March 2023⁷ (with retail sales down 39% and bulk sales down 8%), is expected to show a continued downturn in the second quarter of 2023, in line with the trend seen in the previous two quarters. The previously anticipated stabilisation in the second half of 2023 is now far less likely, given the lack of positive catalysts in the market: interest rates that are expected to rise further, disappointing measures announced in the wake of decisions reached by the Conseil National de la Refondation, and insufficiently relaxed rules announced by France’s High Council for Financial Stability (HCSF). According to BPCE, the French new home market could see fewer than 100,000 reservations for 2023 as a whole. However, the stimulus plan for the real estate sector announced in mid-July by Action Logement, aimed at acquiring 30,000 new homes from developers, should boost the market for bulk sales over the coming years.

In the second half of 2023, Nexity’s retail reservations are expected to continue at the same pace as in the first half of the year. The Group’s ability to outperform the market through bulk sales should help it gain market share. Its backlog of €5.2 billion, which represents almost two years’ revenue, provides good visibility on revenue for 2023.

COMMERCIAL REAL ESTATE DEVELOPMENT

Business activity
With the market at a cyclical low and clients still in wait-and-see mode (according to Knight Frank, investment in France was down 51% in the first half of 2023), Nexity recorded €27 million in new orders in the period to end-June 2023.

Financial performance

Restated figures (€m)	H1 2022	H1 2023	2023/2022 Change
Revenue	161	265	+65%
Operating profit	21	23	+10%
Margin (as % of revenue)	13.0%	8.7%	-430 bps
	31 Dec 2022	30 Jun 2023
Working capital requirement (WCR)	123	143

Revenue to end-June 2023 totalled €265 million (up 65% compared with H1 2022) and operating profit was €23 million (up 10% compared with H1 2022). This very good performance was due in particular to the substantial contribution this year of the green business park in La Garenne-Colombes, which is 65% completed. The margin returned to a level close to normal levels of business activity.

Outlook 

The outlook for Commercial Real Estate is still marked by a wait-and-see attitude from investors, and order intake for Commercial Real Estate should remain limited in 2023. The progress of major backlog operations (green business park in La Garenne-Colombes and Reiwa in Saint-Ouen) will ensure revenue growth in 2023.

Services

Business activity
In the first half of 2023, the overall portfolio in property management for individuals, including both condominium and rental management, came to 820,000 units under management (down slightly). In contrast, the sales and lettings businesses were hampered by the current standstill in the rental market (10% fewer property searches in H1 2023 than in H1 2022, which had already seen a very steep decline⁸).
The Serviced Properties business, on the other hand, continued to grow, with a 10% increase in square metres of coworking space under management and occupancy rates still high for both coworking units (97% at end-June 2023 at mature sites⁹) and student residences (97% at end-June 2023).

Financial performance

Restated figures (€m)	H1 2022	H1 2023	2023/2022 Change
Revenue	421	408	-3%
o/w: Property Management	188	187	NS
o/w: Serviced Properties	102	129	+27%
o/w: Distribution	132	92	-30%
Operating profit	36	24	-33%
Margin (as % of revenue)	8.5%	5.8%	-270 bps
	31 Dec 2022	30 Jun 2023
Working capital requirement (WCR)	36	(28)

Services revenue to end-June 2023 was down 3% relative to end-June 2022 at €408 million, with growth in the Serviced Properties business partly offsetting the decline in the Distribution business, which was affected by the downturn in the new home market. Excluding Distribution, revenue grew by 9%.

Revenue from Property Management activities (for residential and commercial property) remained stable in the half-year period, at €187 million, buoyed by strong performance in residential property management (condominium and rental management), while sales and lettings continued to be affected by market tensions (rising interest rates on borrowing, low occupant turnover and potential buyers adopting a wait-and-see attitude).

Serviced Properties delivered an upbeat performance, generating revenue of €129 million, up 27% relative to end-June 2022, reflecting growth in the portfolio, particularly in coworking spaces.

Revenue from Distribution activities declined (down 30%) as a result of a low number of deeds signed, due in particular to the rapid acceleration in the pace of deeds signed at the end of 2022 when the “Pinel” scheme in its previous form came to an end.

Operating profit for the Services business totalled €24 million at end-June 2023, down 33% relative to end-June 2022, mainly due to lower profitability in the Distribution business, reflecting the downturns in the new home and brokerage markets. Excluding Distribution, profit was stable.

Outlook

Serviced Properties activities will continue the profitable growth momentum achieved since 2022, while Distribution activities will suffer from a less favourable commercial environment.

ONGOING PURSUIT OF GROWTH DRIVERS

ALLIANCE WITH CARREFOUR 

Nexity is joining forces with Carrefour to create development programmes over the next 10 years meeting high environmental performance standards at 76 sites identified in France by the retail group, which will feature homes, serviced residences, offices and shops. 40 sites located in city centres will be fully renovated and 36 others will be built on shopping centre car parks or on the outskirts of cities.
In all, 800,000 sq.m will be developed, more than 80% of which will be residential property (12,000 homes, a third of which will be in social and intermediate housing), and around 150,000 sq.m of retail space.

The land banking company, jointly owned by Carrefour (80%) and Nexity (20%), is expected to be set up by early 2024 at the latest.

The partnership is the first of its scale entered into in France. It reflects the Group’s expertise in urban and regional planning, and will help boost the Group’s range of solutions in urban regeneration.

PARTNERSHIP WITH TOPHAT, A LEADING PLAYER IN OFF-SITE MODULAR CONSTRUCTION

On 14 June 2023, Nexity announced that it had entered into a strategic partnership with TopHat, a leading player in off-site modular construction, in a bid to accelerate the development of off-site construction in France, in particular through factory-built modular off-site construction programmes, and to expand this type of production in France.

The partnership has two key goals: delivering high-quality factory-built homes and making modular construction more widely available in France. TopHat brings its expertise and its track record in factory-built modular construction, while Nexity leverages both its experience with prefabricated construction methods and its large volume of completed programmes involving off-site construction.

This initiative is in keeping with Nexity’s Imagine 2026 strategic plan, which aims to offer high-quality, affordable and low-carbon homes.

NON-FINANCIAL PERFORMANCE (ESG)

Nexity had its new ambition in terms of climate and biodiversity approved at the May 2022 Shareholders’ Meeting through a “Say on Climate” resolution. The aims for its carbon trajectory include, for the Development business, reducing CO₂ emissions per square metre delivered by 42% by 2030 with respect to 2019, representing a level 10% more ambitious than the French 2020 environmental regulation (RE2020), which is already very stringent in the European context.

On 19 July 2023, Nexity’s Group carbon trajectory was certified “1.5°C-aligned” by the Science Based Targets initiative (SBTi)¹⁰, the highest possible level to date.

This recognition shows that the Group’s targets are aligned with the 1.5°C trajectory under the Paris Agreement.

Reflecting this ambition, the extent to which the average of programmes for which building permit applications were filed in the first half of 2023 outperformed RE2020 standards (based on 2022 thresholds applicable until end 2024) exceeds regulatory requirements by 20%, giving an energy performance in excess of the minimum requirement of +10% set by Nexity.

CONSOLIDATED RESULTS – OPERATIONAL REPORTING

(in millions of euros)		H1 2022		H1 2023		Change 2023/2022
Consolidated revenue		1,964		2,043		+4%
Operating profit		110		82		-25%
% of revenue		5.6%		4.0%
Net financial income/(expense)		(26)		(44)		+73%
Income tax		(24)		(12)
Share of profit/(loss) from equity-accounted investments		(1)		(7)
Net profit		59		18		-69%
Non-controlling interests		(5)		(10)
Net profit attributable to equity holders of the parent company		54		9		-84%

REVENUE

(in millions of euros)		H1 2022(1)	H1 2023		Change 2023/2022
Development		1,542	1,635		+6%
Residential Real Estate Development		1,381	1,370		-1%
Commercial Real Estate Development		161	265		+65%
Services		421	408		-3%
Property Management		188	187		NS
Serviced Properties		102	129		+27%
Distribution		132	92		-30%
Other Activities		-	-		NS
Revenue		1,964	2,043		+4%
o/w: External growth in Residential Real Estate Development (Angelotti)			74

(1) Reclassification of Villes & Projets (historically classified in Other Activities division) in Residential Real Estate Development.

Reported revenue to end-June 2023 came to €2,043 million, up 4% relative to end-June 2022. On a like-for-like basis (excluding Angelotti), revenue was stable. Revenue excluding international business totalled €1,995 million, compared with €1,938 million in the first half of 2022, up 3%, which is not representative of the expected trend over the full year.

Revenue for the Development business was up 6% year on year to €1,635 million, mainly driven by the significant revenue generated through major projects in Commercial Real Estate (the green business park in La Garenne-Colombes and Nexity’s headquarters in Saint-Ouen). Revenue from Residential Real Estate Development remained virtually stable compared with the first half of the previous year (down 1%).

Revenue from Services contracted slightly (down 3%), with the surge in revenue for the Serviced Properties business (up 27% compared with H1 2022) not enough to offset the decline in revenue from Distribution, which was affected by the downturn in the new home market.

Under IFRS, reported revenue to end-June 2023 totalled €1,892 million, up 5% relative to 30 June 2022 (€1,800 million) and up 1% on a like-for-like basis. This figure excludes revenue from joint ventures, in accordance with IFRS 11, which requires these ventures – proportionately consolidated in the Group’s operational reporting – to be accounted for using the equity method. It should be noted that revenue generated by the development businesses from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of all inventoriable costs.

OPERATING PROFIT

		H1 2022(1)		H1 2023
(in millions of euros)		Current operating profit	Margin	Current operating profit	Margin
Development		86	5.6%	69	4.2%
Residential Real Estate Development		65	4.7%	46	3.4%
Commercial Real Estate Development		21	13.0%	23	8.7%
Services		36	8.5%	24	5.8%
Other Activities		(12)	N/A	(11)	N/A
Operating profit		110	5.6%	82	4.0%

(1) Reclassification of Villes & Projets (historically classified in Other Activities division) in Residential Real Estate Development

Operating profit was €82 million. The decline relative to the first half of 2022 reflects the downturn in Residential Real Estate as well as the decline in Distribution activities within the Services business.

OTHER INCOME STATEMENT ITEMS

The net financial expense increased by nearly €20 million relative to end-June 2022, mainly due to rising interest rates, which directly affected borrowing costs for the Group’s floating-rate debt (which made up 51% of total debt at end-June 2023), as well as higher finance costs on lease liabilities in light of growth in the portfolio.

The tax expense (including the CVAE, a French business value-added tax) amounted to €12 million. The current effective tax rate (excluding the CVAE) was 29.6% at end-June 2023 (compared with 28% at year-end 2022).

The Group share of net profit came to €9 million in H1 2023.

CASH FLOW AND BALANCE SHEET ITEMS

BALANCE SHEET AND FINANCIAL STRUCTURE

Nexity’s consolidated equity (attributable to equity holders of the parent company) was €1,856 million at end-June 2023 (compared with €1,974 million at year-end 2022).

The Group’s net debt before lease liabilities amounted to €1,012 million at end-June 2023 (€912 million after the disposal of the subsidiary in Poland), up €193 million compared to 2022. By maintaining a rigorous approach to managing its WCR, the Group has kept net debt under control.

At 30 June 2023, the leverage ratio¹¹ stood at 2.7x EBITDA (2.5x including the impact of the disposal of the business in Poland).

The ratio calculated in accordance with contractual provisions set out in credit agreements stood at 2.1x at 30 June 2023, well below the limits set out in the banking covenants (3.5x).

(in millions of euros)		31 Dec 2022	30 Jun 2023	Change 2023/2022
Bond issues and other		976	938	(38)
Bank borrowings and commercial paper		874	977	+103
Net cash and cash equivalents		(1,030)	(902)	+128
Net financial debt before lease liabilities		820	1,012	+193

Gross debt consists mainly of fixed-rate debt (49%), limiting the Group’s exposure to rising interest rates. At 30 June 2023, the average maturity of the Group’s debt remained high at 2 years and 9 months, with an average cost of borrowing of 2.8%, given the proportion of fixed-rate debt contracted prior to the 2022 rate increase.

In February 2023, the Group renewed its corporate credit line for a period of 5 years with an expanded pool of banks and for an increased amount (€800 million versus €500 million). The Group’s financial position is solid, with total cash and cash equivalents of more than €900 million, and to date €520 million in confirmed undrawn credit lines.

The increase in net debt over the first half was mainly due to the moderate increase in the working capital requirement (WCR) before tax (up €50 million compared with its level in December 2022), as well as the dividend payment and advance corporate income tax payments.

WORKING CAPITAL REQUIREMENT

(in millions of euros)		Dec 2022(1)	H1 2023		2023/2022 Change
Development		1,322	1,370		+48
Residential Real Estate Development		1,199	1,227		+28
Commercial Real Estate Development		123	143		+20
Services		36	(28)		(64)
Other Activities		(23)	42		+65
Total WCR excluding tax		1,335	1,385		+50
Corporate income tax		(11)	33		+44
Working capital requirement (WCR)		1,324	1,418		+94

⁽¹⁾ Reclassification of Villes & Projets (historically classified in Other Activities division) in Residential Real Estate Development

EVENT SUBSEQUENT TO THE PERIOD-END, 30 JUNE 2023

DISPOSAL OF NEXITY’S SUBSIDIARY IN POLAND 

As part of its decision to discontinue its business outside France, Nexity announced the sale of 100% of its development operations in Poland to Polish property developer Develia.¹²
This sale, for which the price was set at €100 million, is in line with the timetable set out by Nexity in February 2023 when it announced its full-year results, and will help the Group reduce its debt level.
Approval from the Polish competition authority (UOKiK) was obtained on 13 July 2023. The final signature and receipt of funds took place this morning.

FORECAST FOR 2023 AND OUTLOOK

The ongoing deterioration in the economic environment (rising interest rates, fewer mortgages approved by lenders, steep decline in retail sales) and the long timescales needed to deliver property developments (around 18 months) have prompted the Group to revise its 2023 targets:

• Expected 2023 revenue of €4.3 billion (excluding international business), with operating profit of €250 million¹³
• A priority focus on controlling net debt and cash to maintain the Group’s agility
• Dividend payable in 2024 reflecting the level of net profit in 2023¹⁴
  
  

Consequently, the financial targets announced at the Investor Day event on 28 September 2022¹⁵ are suspended and will be revised in the course of 2024.

Nexity will be stepping up implementation of its strategic plan, fully borne out by the crisis, and adapting to new challenges. In light of the growing structural demand for housing, the need to develop low-carbon sustainable cities and the need for new uses, the Group is confident that the relevance of its model will enable it to consolidate during this period of adjustment.

***

FINANCIAL CALENDAR & PRACTICAL INFORMATION

Q3 2023 revenue and business activity        Wednesday, 25 October 2023 (after market close)

2023 full-year results        Wednesday, 28 February 2024 (after market close)

A conference call will be held today in French, with simultaneous translation into English, at 6:30 p.m. (Paris time), which can be joined via the “Finance” section of our website, https://nexity.group/en/finance, or by calling one of the following numbers:

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

Code: Nexity FR

The presentation accompanying this conference will be available on the Group’s website from 6:15 p.m. (Paris time) and may be viewed at the following address: Nexity H1 2023 webcast
The conference call will be available on replay at www.nexity.group/en/finance from the following day.

Disclaimer: The information, assumptions and estimates that the Company could reasonably use to determine its targets are subject to change or modification, notably due to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks described in Section 2 of the Universal Registration Document filed with the AMF under number D.23-0251 on 6 April 2023 could have an impact on the Group’s operations and the Company’s ability to achieve its targets. Accordingly, the Company cannot give any assurance as to whether it will achieve its stated targets, and makes no commitment or undertaking to update or otherwise revise this information.

Contact:
Géraldine Bop – Head of Financial Communications / [phone] – [e-mail]

ANNEX: OPERATIONAL REPORTING

Residential Real Estate Development – Quarterly reservations

		2021					2022					2023
Number of units		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2
New homes (France)		3,508	4,843	4,092	7,658		3,490	4,149	3,807	6,569		2,811	3,274
Reservations made directly with Ægide		389	348	-	-		-	-	-	-		-	-
Total new homes (France)		3,897	5,191	4,092	7,658		3,490	4,149	3,807	6,569		2,811	3,274
Subdivisions		338	439	367	772		337	423	219	558		288	359
Total number of reservations (France)		4,235	5,630	4,459	8,430		3,827	4,572	4,026	7,127		3,099	3,633

		2021					2022					2023
Value (€m incl. VAT)		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2
New homes (France)		792	1,056	845	1,447		764	992	805	1,363		575	685
Reservations made directly with Ægide		90	85	-	-		-	-	-	-		-	-
Total new homes (France)		882	1,141	845	1,447		764	992	805	1,363		575	685
Subdivisions		29	42	33	55		27	37	18	53		28	28
Total amount of reservations (France)		911	1,183	878	1,502		790	1,029	824	1,416		604	713

Residential Real Estate Development – Cumulative reservations

		2021					2022					2023
Number of units		Q1	H1	9M	12M		Q1	H1	9M	12M		Q1	H1
New homes (France)		3,508	8,351	12,443	20,101		3,490	7,639	11,446	18,015		2,811	6,085
Reservations made directly with Ægide		389	737	737	737		-	-	-	-		-	-
Total new homes (France)		3,897	9,088	13,180	20,838		3,490	7,639	11,446	18,015		2,811	6,085
Subdivisions		338	777	1,144	1,916		337	760	979	1,537		288	647
Total number of reservations (France)		4,235	9,865	14,324	22,754		3,827	8,399	12,425	19,552		3,099	6,732

		2021					2022					2023
Value (€m incl. VAT)		Q1	H1	9M	12M		Q1	H1	9M	12M		Q1	H1
New homes (France)		792	1,848	2,693	4,140		764	1,756	2,561	3,924		575	1,260
Reservations made directly with Ægide		90	175	175	175		-	-	-	-		-	-
Total new homes (France)		882	2,023	2,868	4,315		764	1,756	2,561	3,924		575	1,260
Subdivisions		29	71	104	159		27	64	82	135		28	56
Total amount of reservations (France)		911	2,094	2,972	4,474		790	1,819	2,643	4,059		604	1,316

Breakdown of new home reservations (France) by client

(number of units)	H1 2022		H1 2023		Change H1 2023 / H1 2022
Homebuyers	1,513	20%	1,075	18%	-29%
o/w: - First-time buyers	1,317	17%	890	15%	-32%
- Other homebuyers	195	3%	185	3%	-5%
Individual investors	3,335	44%	1,767	29%	-47%
Professional landlords	2,791	37%	3,243	53%	+16%
o/w: - Institutional investors	727	10%	693	11%	-5%
- Social housing operators	2,064	27%	2,550	42%	+24%
Total	7,639	100%	6,085	100%	-20%
o/w: Reservations made through external growth (Angelotti)			124	N/A	N/A

Backlog

		2021					2022					2023
(in millions of euros, excluding VAT)		Q1	H1	9M	12M		Q1	H1	9M	12M		Q1	H1
Residential Real Estate Development (France)		5,183	5,200	5,279	5,236		5,230	5,219	5,168	5,321		5,225	5,168
Development projects undertaken directly by Ægide		242	-	-	-		-	-	-	-		-	-
Commercial Real Estate Development		1,138	1,059	1,013	974		935	906	827	779		659	536
Total		6,562	6,259	6,291	6,210		6,165	6,125	5,995	6,100		5,883	5,704

Services

		December 2022		June 2023		Change
Property Management for Companies and Individuals
Property Management for Individuals
- Condominium management		680,000		663,000		-3%
- Rental management		160,000		158,000		-1%
Property Management for Companies
- Assets under management (in millions of sq.m)		20.0		19.1		-4%
Serviced Properties
Student residences
- Number of residences in operation		131		130		-1
- Rolling 12-month occupancy rate		97%		97%		-
Shared office space
- Floor space under management (in sq.m)		110,000		127,000		+16%
- Rolling 12-month occupancy rate		85%		82%		-300 bps
Distribution		June 2022		June 2023		Change
- Total reservations		2,425		1,415		-42%
- o/w: Reservations on behalf of third parties		1,497		1,116		-25%

Revenue – Quarterly figures

	2021(1)					2022(1)					2023
(in millions of euros)	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2
Development	851	827	815	1,279		700	843	775	1,448		701	934
Residential Real Estate Development	656	742	736	1,146		627	754	687	1,317		577	793
Commercial Real Estate Development	195	85	79	133		72	89	89	131		125	140
Services	176	209	198	270		195	226	215	301		194	214
Property Management	91	94	100	94		92	96	98	96		92	95
Serviced Properties	35	35	40	47		49	53	53	62		61	68
Distribution	50	80	58	129		54	77	64	144		40	52
Other Activities	-	-	-	-		-	-	-	-		-	-
Revenue (restated)(2)	1,028	1,036	1,013	1,549		895	1,069	991	1,750		895	1,148
Revenue from discontinued operations	104	107	-	-		-	-	-	-		-	-
Revenue	1,132	1,143	1,013	1,549		895	1,069	991	1,750		895	1,148
o/w: External growth in Residential Real Estate (Angelotti)	-	-	-	-		-	-	-	45		35	39
o/w: International	7	11	3	39		25	1	35	128		4	43

⁽¹⁾ Reclassification of Villes & Projets (historically classified in Other Activities division) in Residential Real Estate Development
⁽²⁾ Excluding operations disposed of in 2021 (Century 21 and Ægide-Domitys)

Revenue – Half-year figures

		2021(1)				2022(1)				2023
In € million		H1	H2	FY		H1	H2	FY		H1
Development		1.678	2.094	3.772		1.542	2.223	3.766		1.635
Residential Real Estate development		1.398	1.882	3.280		1.381	2.004	3.385		1.370
Commmercial Real Estate development		280	212	492		161	220	380		265
Services		385	468	853		421	517	938		408
Property management		186	194	379		188	194	382		187
Serviced properties		70	87	157		102	115	217		129
Distribution		130	186	316		132	208	340		92
Other activities		0		0		0		0
Revenue - New scope(2)		2.064	2.562	4.625		1.964	2.740	4.704		2.043
Revenue from disposed activities		211		211
Revenue		2.275	2.562	4.837		1.964	2.740	4.704		2.043
Incl. External growth Residential Real Estate development (Angelotti)							45	45		74
Incl. International		19	42	61		26	163	189		47

⁽¹⁾Reclassification of Villes & Projets (historically classified in Other Activities division) in Residential Real Estate Development
⁽²⁾ Excluding operations disposed of in 2021 (Century 21 and Ægide-Domitys)

Current operating profit – Half-year figures

		2021(1)				2022(1)				2023
(in millions of euros)		H1*	H2	12M		H1	H2	12M		H1
Development		126	223	349		86	240	326		69
Residential Real Estate Development		82	208	290		65	215	280		46
Commercial Real Estate Development		44	15	59		21	24	45		23
Services		26	48	74		36	56	92		24
Property Management		11	15	27		12	17	29		13
Serviced Properties		2	7	10		11	8	19		10
Distribution		12	25	37		13	31	43		1
Other Activities		(19)	(33)	(52)		(12)	(39)	(51)		-11
Operating profit – New scope (2)		133	238	371		110	256	367		82
Non-recurring items(2)		41	116	157
Operating profit		174	353	528		110	256	367		82

⁽¹⁾ Reclassification of Villes & Projets (historically classified in Other Activities division) in Residential Real Estate Development
⁽²⁾ Excluding operations disposed of in 2021 (Century 21 and Ægide-Domitys) and goodwill impairment
* H1 2021 figures restated following the IFRS IC decision of March 2021 regarding costs incurred for software in a SaaS arrangement

Consolidated income statement – 30 June 2023

(in millions of euros)		30/06/2023 IFRS		Restatement of joint ventures	30/06/2023 Operational reporting			30/06/2022 Operational reporting
Revenue		1,891.6		151.2	2,042.8			1,963.7
Operating expenses		(1,724.4)		(138,6)	(1,863.0)			(1,772.0)
Dividends received from equity-accounted investments		5.2		(5.2)	-			-
EBITDA		172.4		7.4	179.8			191.7
Lease payments		(69.3)		(0.0)	(69.3)			(63.5)
EBITDA after lease payments		103.1		7.4	110.5			128.2
Restatement of lease payments		69.3		0.0	69.3			63.5
Depreciation of right-of-use assets		(74.9)		(0.0)	(74.9)			(63.0)
Depreciation, amortisation and impairment of non-current assets		(20.6)		0.0	(20.6)			(16.6)
Net change in provisions		2.4		0.3	2.6			4.1
Share-based payments		(4.8)		-	(4.8)			(6.1)
Dividends received from equity-accounted investments		(5.2)		5.2
Current operating profit		69.4		12.9	82.3			110.1
Non-current operating profit		-		-	-			-
Operating profit		69.4		12.9	82.3			110.1
Share of net profit from equity-accounted investments		7.3		(7.3)
Operating profit after share of net profit from equity-accounted investments		76.6		5.6	82.3			110.1
Cost of net financial debt		(23.1)		(3.2)	(26.2)			(15.3)
Other financial income/(expenses)		(5.6)		(0.1)	(5.7)			(2.2)
Interest expense on lease liabilities		(12.4)		-	(12.4)			(8.1)
Net financial income/(expense)		(41.1)		(3.3)	(44.4)			(25.6)
Pre-tax recurring profit		35.6		2.3	37.9			84.5
Income tax		(10.0)		(2.3)	(12.4)			(24.4)
Share of profit/(loss) from other equity-accounted investments		(7.5)		-	(7.5)			(1.0)
Consolidated net profit		18.1		(0.0)	18.1			59.0
o/w: Attributable to non-controlling interests		9.5		-	9.5			4.9
o/w: Attributable to equity holders of the parent company		8.6		(0.0)	8.6			54.2
(in euros)
Net earnings per share		0.15			0.15			0.98

Simplified consolidated statement of financial position – 30 June 2023

ASSETS (in millions of euros)		30/06/2023 IFRS		Restatement of joint ventures		30/06/2023 Operational reporting		31/12/2022 Operational reporting
Goodwill		1,399.0		-		1,399.0		1,397.7
Other non-current assets		1,049.9		0.2		1,050.1		1,004.3
Equity-accounted investments		104.0		(56.5)		47.5		55.2
Total non-current assets		2,552.9		(56.2)		2,496.7		2,457.3
Net WCR		1,208.0		209.6		1,417.6		1,323.7
Net assets held for sale		46.9				46.9		45.0
Total assets		3,807.8		153.4		3,961.2		3,826.0
LIABILITIES AND EQUITY (in millions of euros)		30/06/2023 IFRS		Restatement of joint ventures		30/06/2023 Operational reporting		31/12/2022 Operational reporting
Share capital and reserves		1,847.1		-		1,847.1		1,786.3
Net profit for the period		8.6		-		8.6		187.8
Equity attributable to equity holders of the parent company		1,855.6		-		1,855.6		1,974.1
Non-controlling interests		69.0		-		69.0		61.6
Total equity		1,924.6		-		1,924.6		2,035.7
Net debt		1,709.0		142.7		1,851.7		1,598.8
Provisions		94.1		1.5		95.6		99.6
Net deferred tax		80.1		9.1		89.3		91.9
Total liabilities and equity		3,807.8		153.4		3,961.2		3,826.0

Net debt – 30 June 2023

(in millions of euros)	30/06/2023 IFRS	Restatement of joint ventures	30/06/2023 Operational reporting		31/12/2022 Operational reporting
Bond issues (incl. accrued interest and arrangement fees)	815.5	-	815.5		811.6
Put options granted to minority shareholders	122.2	-	122.2		164.5
Loans and borrowings	891.3	86.4	977.7		875.2
Loans and borrowings	1,828.9	86.4	1,915.4		1,851.4
Other financial receivables and payables	(271.2)	179.5	(91.7)		(65.9)
Cash and cash equivalents	(725.5)	(150.0)	(875.5)		(1,064.9)
Bank overdraft facilities	37.3	26.8	64.1		99.2
Net cash and cash equivalents	(688.2)	(123.2)	(811.4)		(965.7)
Total net financial debt before lease liabilities	869.6	142.7	1,012.3		819.7
Lease liabilities	839.4	-	839.4		779.0
Total net debt	1,709.0	142.7	1,851.7		1,598.8

Simplified statement of cash flows – 30 June 2023

(in millions of euros)	30/06/2023 IFRS (6-month period)	Restatement of joint ventures	30/06/2023 Operational reporting		30/06/2022 Operational reporting
Consolidated net profit	18.1	0.0	18.1		59.0
Elimination of non-cash income and expenses	92.7	7.0	99.7		81.7
Cash flow from operating activities after interest and tax expenses	110.8	7.0	117.8		140.8
Elimination of net interest expense/(income)	35.5	3.2	38.7		23.4
Elimination of tax expense, including deferred tax	10.0	2.3	12.3		24.2
Cash flow from operating activities before interest and tax expenses	156.3	12.4	168.8		188.3
Repayment of lease liabilities	(69.3)	-	(69.3)		(63.5)
Cash flow from operating activities after lease payments but before interest and tax expenses	87.0	12.4	99.5	-	124.8
Change in operating working capital requirement	(89.9)	39.3	(50.6)		(195.9)
Dividends received from equity-accounted investments	5.2	(5.2)	-		-
Interest paid	(17.1)	(2.8)	(19.9)		(8.8)
Tax paid	(53.8)	(0.6)	(54.4)		(27.6)
Net cash from/(used in) operating activities	(68.6)	43.1	(25.5)		(107.4)
Net cash from/(used in) net operating investments	(27.9)	-	(27.9)		(28.9)
Free cash flow	(96.5)	43.1	(53.3)		(136.4)
(Acquisitions)/Disposals of subsidiaries and other changes in scope	(0.9)	-	(0.9)		(2.9)
Reclassification in accordance with IFRS 5	5.0	-	5.0		-
Other net financial investments	2.4	0.0	2.5		(3.8)
Net cash from/(used in) investing activities	6.5	0.0	6.5		(6.7)
Dividends paid to equity holders of the parent company	(137.8)	-	(137.8)		(138.1)
Other payments (to)/from minority shareholders	(1.2)	-	(1.2)		0.2
Net disposal/(acquisition) of treasury shares	1.2		1.2		(1.5)
Change in financial receivables and payables (net)	54.7	(24.2)	30.5		22.8
Net cash from/(used in) financing activities	(83.2)	(24.1)	(107.3)		(116.6)
Impact of changes in foreign currency exchange rates	0.0	(0.2)	(0.1)		0.2
Change in cash and cash equivalents	(173.1)	18.9	(154.3)		(259.4)

Capital employed

(in millions of euros)					H1 2023
		Total (excl. right-of-use assets)	Total (incl. right-of-use assets)		Non-current assets		Right-of-use assets		WCR		Goodwill
Development		1,453	1,505		75		52		1,378
Services		88	769		117		680		(29)
Other Activities and not attributable		1,525	1,552		58		26		68		1,399
Group capital employed		3,067	3,825		250		758		1,418		1,399
(in millions of euros)					2022
		Total (excl. right-of-use assets)	Total (incl. right-of-use assets)		Non-current assets		Right-of-use assets		WCR		Goodwill
Development		1,330	1,379		41		49		1,289
Services		159	795		124		636		35
Other Activities and not attributable		1,484	1,515		87		31		0		1,398
Group capital employed		2,973	3,689		252		716		1,324		1,398

ANNEX: IFRS

Consolidated income statement – 30 June 2023

(in millions of euros)		30/06/2023 IFRS		30/06/2022 IFRS
Revenue		1,891.6		1,800.2
Operating expenses		(1,724.4)		(1,623.6)
Dividends received from equity-accounted investments		5.2		2.2
EBITDA		172.4		178.8
Lease payments		(69.3)		(63.5)
EBITDA after lease payments		103.1		115.3
Restatement of lease payments*		69.3		63.5
Depreciation of right-of-use assets		(74.9)		(63.0)
Depreciation, amortisation and impairment of non-current assets		(20.6)		(16.6)
Net change in provisions		2.4		4.0
Share-based payments		(4.8)		(6.1)
Dividends received from equity-accounted investments		(5.2)		(2.2)
Current operating profit		69.4		94.9
Capital gains on disposal		-		-
Operating profit		69.4		94.9
Share of net profit from equity-accounted investments		7.3		9.8
Operating profit after share of net profit from equity-accounted investments		76.6		104.7
Cost of net financial debt		(23.1)		(14.1)
Other financial income/(expenses)		(5.6)		(2.0)
Interest expense on lease liabilities		(12.4)		(8.1)
Net financial income/(expense)		(41.1)		(24.2)
Pre-tax recurring profit		35.6		80.5
Income tax		(10.0)		(20.5)
Share of profit/(loss) from other equity-accounted investments		(7.5)		(1.0)
Consolidated net profit		18.1		59.0
o/w: Attributable to non-controlling interests		9.5		4.9
o/w: Attributable to equity holders of the parent company		8.6		54.2
(in euros)
Net earnings per share		0.15		0.98

Simplified consolidated statement of financial position – 30 June 2023

ASSETS (in millions of euros)		30/06/2023 IFRS		31/12/2022 IFRS
Goodwill		1,399.0		1,397.7
Other non-current assets		1,049.9		1,004.1
Equity-accounted investments		104.0		109.3
Total non-current assets		2,552.9		2,511.1
Net WCR		1,208.0		1,073.4
Net assets held for sale		46.9		45.0
Total assets		3,807.8		3,629.5
LIABILITIES AND EQUITY (in millions of euros)		30/06/2023 IFRS		31/12/2022 IFRS
Share capital and reserves		1,847.1		1,786.3
Net profit for the period		8.6		187.8
Equity attributable to equity holders of the parent company		1,855.6		1,974.1
Non-controlling interests		69.0		61.6
Total equity		1,924.6		2,035.7
Net debt		1,709.0		1,413.0
Provisions		94.1		97.8
Net deferred tax		80.1		83.0
Total liabilities and equity		3,807.8		3,629.5

Consolidated net debt – 30 June 2023

(in millions of euros)		30/06/2023 IFRS		31/12/2022 IFRS
Bond issues (incl. accrued interest and arrangement fees)		815.5		811.6
Put options granted to minority shareholders		122.2		164.5
Loans and borrowings		891.3		782.5
Loans and borrowings		1,828.9		1,758.6
Other financial receivables and payables		(271.2)		(263.4)
Cash and cash equivalents		(725.5)		(898.0)
Bank overdraft facilities		37.3		36.7
Net cash and cash equivalents		(688.2)		(861.3)
Total net financial debt before lease liabilities		869.6		633.9
Lease liabilities		839.4		779.0
Total net debt		1,709.0		1,413.0

Simplified statement of cash flows – 30 June 2023

(in millions of euros)	30/06/2023 IFRS		30/06/2022 IFRS
Consolidated net profit	18.1		59.0
Elimination of non-cash income and expenses	92.7		72.1
Cash flow from operating activities after interest and tax expenses	110.8		131.1
Elimination of net interest expense/(income)	35.5		22.2
Elimination of tax expense, including deferred tax	10.0		20.2
Cash flow from operating activities before interest and tax expenses	156.3		173.5
Repayment of lease liabilities	(69.3)		(63.5)
Cash flow from operating activities after lease payments but before interest and tax expenses	87.0		110.1
Change in operating working capital requirement	(89.9)		(200.3)
Dividends received from equity-accounted investments	5.2		2.2
Interest paid	(17.1)		(7.7)
Tax paid	(53.8)		(26.2)
Net cash from/(used in) operating activities	(68.6)		(122.0)
Net cash from/(used in) net operating investments	(27.9)		(28.9)
Free cash flow	(96.5)		(151.0)
Acquisitions of subsidiaries and other changes in scope	(0.9)		(2.8)
Reclassification in accordance with IFRS 5	5.0		-
Other net financial investments	2.4		(3.7)
Net cash from/(used in) investing activities	6.5		(6.5)
Dividends paid to equity holders of the parent company	(137.8)		(138.1)
Other payments (to)/from minority shareholders	(1.2)		0.2
Net disposal/(acquisition) of treasury shares	1.2		(1.5)
Change in financial receivables and payables (net)	54.7		18.3
Net cash from/(used in) financing activities	(83.2)		(121.2)
Impact of changes in foreign currency exchange rates	0.0		0.2
Change in cash and cash equivalents	(173.1)		(278.5)

GLOSSARY

Absorption rate: Available market supply compared to reservations for the last 12 months, expressed in months, for the new homes business in France.

Business potential: The total volume of potential business at any given moment, expressed as a number of units and/or revenue excluding VAT, within future projects in Residential Real Estate Development (new homes, subdivisions and international) as well as Commercial Real Estate Development, validated by the Group’s Committee, in all structuring phases, including the programmes of the Group’s urban regeneration business (Villes & Projets); this business potential includes the Group’s current supply for sale, its future supply (project phases not yet marketed on purchased land, and projects not yet launched associated with land secured through options).

Current operating profit: Includes all operating profit items with the exception of items resulting from unusual, abnormal and infrequently occurring transactions. In particular, impairment of goodwill is not included in current operating profit.

Development backlog (or order book): The Group’s already secured future revenue, expressed in euros, for its real estate development businesses (Residential Real Estate Development and Commercial Real Estate Development). The backlog includes reservations for which notarial deeds of sale have not yet been signed and the portion of revenue remaining to be generated on units for which notarial deeds of sale have already been signed (portion remaining to be built).

EBITDA: Defined by Nexity as equal to current operating profit before depreciation, amortisation and impairment of non-current assets, net changes in provisions, share-based payment expenses and the transfer from inventory of borrowing costs directly attributable to property developments, plus dividends received from equity-accounted investees whose operations are an extension of the Group’s business. Depreciation and amortisation includes right-of-use assets calculated in accordance with IFRS 16, together with the impact of neutralising internal margins on disposal of an asset by development companies, followed by take-up of a lease by a Group company.

EBITDA after lease payments: EBITDA net of expenses recorded for lease payments that are restated to reflect the application of IFRS 16 Leases.

Free cash flow: Cash generated by operating activities after taking into account tax paid, financial expenses, repayment of lease liabilities, changes in WCR, dividends received from companies accounted for under the equity method and net investments in operating assets.

Joint ventures: Entities over whose activities the Group has joint control, established by contractual agreement. Most joint ventures are property developments (Residential Real Estate Development and Commercial Real Estate Development) undertaken with another developer (co-developments).

Land bank: The amount corresponding to acquired land development rights for projects in France carried out before obtaining a building permit or, in some cases, planning permissions.

Market share for new homes in France: Number of reservations made by Nexity (retail and bulk sales) divided by the number of reservations (retail and bulk sales) reported by the French Federation of Real Estate Developers (FPI).

Net profit before non-recurring items: Group share of net profit restated for non-recurring items such as change in fair value adjustments in respect of the ORNANE bond issue and items included in non-current operating profit (disposal of significant operations, any goodwill impairment losses, remeasurement of equity-accounted investments following the assumption of control).

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.

Order intake – Commercial Real Estate Development: The total of selling prices excluding VAT as stated in definitive agreements for Commercial Real Estate Development projects, expressed in euros for a given period (notarial deeds of sale or development contracts).

Pipeline: Sum of backlog and business potential; may be expressed in months or years of revenue (as for backlog and business potential) based on revenue for the previous 12-month period.

Property Management: Management of residential properties (rentals, brokerage), common areas of apartment buildings (as managing agent on behalf of condominium owners), commercial properties, and services provided to users.

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

Revenue: Revenue generated by the development businesses from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of all inventoriable costs.

Serviced Properties: Operation of student residences and flexible workspaces.

---

1 Source: BPCE for full-year 2023 market estimate and French Federation of Real Estate Developers (FPI) – 25 May 2023 for data at 31 March 2023
2 Stable on a like-for-like basis (excluding Angelotti)
3 EBITDA after lease payments – Ratio following disposal of Nexity’s subsidiary in Poland (see “Subsequent events” section of this press release)
4 Previous guidance announced on 22 February 2023: revenue in excess of €4.5bn (stable excluding International business) and operating profit in excess of €300m
5 Subject to the approval by the Shareholders’Meeting on 23 May 2024
6 Previous financial targets announced on 28 September 2022: >20% market share in Residential Real Estate by 2030; >€6bn in revenue and >€500m in current operating profit by 2026; Group debt under control: leverage ratio <2.5x EBITDA (2022-2026); Dividend ≥€2.50 per share for each financial year over the 2022-2026 period 
7 Source: French Federation of Real Estate Developers (FPI), 25 May 2023 – Data at 31 March 2023
8 Source: Bien’ici
9 Sites open for more than 12 months
10 Information to be published on SBTi’s website on 24 August 2023
11 Net debt / EBITDA after lease payments
12 See press release published by Nexity on 1 June 2023 and available on the Company’s website
13 Previous guidance announced on 22 February 2023: 2023 revenue in excess of €4.5 billion, stable relative to 2022 excluding International business, and operating profit in excess of €300 million.
14 Subject to the approval by the Shareholders’Meeting on 23 May 2024
15 Previous financial targets announced on 28 September 2022: >20% market share in Residential Real Estate by 2030; >€6bn in revenue and >€500m in current operating profit by 2026; Group debt under control: leverage ratio <2.5x EBITDA (2022-2026); Dividend ≥€2.50 per share for each financial year over the 2022-2026 period

Attachment

• PR H1 2023_V26072023_ENG_clean