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:
| +33 (0) 1 70 37 71 66 |
| +44 (0) 33 0551 0200 |
| +1 786 697 3501 |
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 / +33 (0)6 23 15 40 56 - investorrelations@nexity.fr
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
