Nexity : 2016 annual results
(Thomson Reuters ONE) -
2016 ANNUAL RESULTS
Paris, Tuesday 21 February 2017
NEXITY PERFORMS WELL IN 2016
* Residential real estate reservations grow to a record 18,890 reservations,
including 15,893[1] new home reservations in France (up 35% by volume and
29% by value)
* Nexity's market share in Residential real estate up 1.4 percentage points to
12.7%
* Commercial real estate order intake: ?356 million
* Development backlog: ?4.0 billion (up 22%)
* Revenue: ?3.07 billion (up 0.5%)
* Current operating profit target exceeded: ?266 million (up 21% relative to
2015) and an operating margin of 8.7% (up 1.5 percentage points)
* Free cash flow generated: ?168 million
* Net debt under control at ?317 million (gearing[2]: 20%)
2017: GROWTH EXPECTED FOR ALL OF THE GROUP'S BUSINESS LINES
* New client-centric organisation to prepare the ground to become a truly
comprehensive real estate services provider[3] and launch a new 2018 - 2020
strategic plan
* Growth in Nexity's new home reservations in a French market expected to be
stable in 2017 (125,000 reservations), with Nexity growing its market share
by around 1 percentage point
* Commercial real estate order intake in excess of ?350 million in 2017
* 2017 revenue growth of around 10%
* Growth in current operating profit: ?300 million in 2017, a year ahead of
the business plan; ?325 million in 2018
* Dividend per share payable in 2017 and 2018 increased[4] to ?2.40
Alain Dinin, Chairman and CEO of Nexity, commented:
"Nexity delivered an outstanding performance in 2016, meeting or exceeding all
targets.
The new homes market grew strongly in 2016, with reservations set to total
125,000, close to an all-time high, thanks to low interest rates, effective
demand stimulus mechanisms and a growing appetite for real estate among the
French population. Nexity's growth significantly outpaced the market, allowing
us to increase our market share to an unprecedented level (12.7% in 2016,
compared with 11.3% in 2015). This was healthy growth, not driven by price
inflation, and evenly spread across our client segments (homebuyers, private
investors and institutional investors), all of which showed growth. Other real
estate markets (existing homes, commercial real estate and urban planning) were
also buoyant, with Nexity posting very strong commercial performance in these
segments.
While 2017 has started off on a similarly favourable footing, the environment is
more uncertain. Of greater concern than interest rate rises, which clients
should be able to absorb if they are gradual and moderate, is the build-up of
political risk, not only in France but also globally. At this stage, we expect
the residential market to be stable relative to 2016 (125,000 reservations). In
any event, thanks to our risk management policy and the flexibility of our
operating model, we feel we are well prepared to confront any of the various
scenarios that might arise.
Nexity's financial performance in 2016 was very satisfactory. Our revenue was
stable: the contribution from new orders booked in 2015 and 2016 and
acquisitions completed in 2016 will be deferred. Our current operating profit
grew 21% to ?266 million, with an improved contribution from all business lines,
and service businesses pulling their weight. Cash generation was strong. Lastly,
our backlog of ?4.0 billion (up 22%) gives us good medium-term visibility.
We expect to deliver operating profit of at least ?300 million in 2017, a year
ahead of our business plan, followed by ?325 million in 2018. Nexity is on a
growth trajectory in terms of revenue, profit and shareholder returns.
However, over and above a continuous improvement in business line performance,
Nexity is seeking to deliver a more far-reaching transformation in its business
model to drive continued growth. On the strength of the leading positions it
enjoys in its business segments, the Group is keen to become a truly
comprehensive real estate services provider serving three client groups:
Individuals, Businesses and Local Authorities. The new organisational structure
I have put in place should deliver strong and measurable results in the near
future."
***
At its meeting on Tuesday, 21 February 2017, chaired by Alain Dinin, Nexity's
Board of Directors reviewed and approved the Group's consolidated financial
statements for the financial year ended 31 December 2016. The Group's
consolidated income statement and statement of financial position are included
on pages 18 and 19 of this press release. Audit procedures have been performed.
The audit report will be issued after the verification of the information
presented in the Group's management report.
Nexity exceeds its targets[5]
------------- -----------------------
2016 actual 2016 guidance
---------------------------------------- ------------- -----------------------
New home reservations in France (by +35.4% > +15-20% *
volume)
Commercial real estate order intake ?356m > ?250m *
Revenue ?3.1bn Stable at around ?3bn *
Current operating profit ?266m > ?245m *
---------------------------------------- ------------- -----------------------
*: target exceeded
2016 business activity
Residential real estate
For 2016, the retail market for new homes in France is set to post its best
performance since 2007. Net reservations in the full year should reach
125,000[6] (up 21% relative to 2015), thanks to the various stimulus measures
currently in force up to the end of 2017, low interest rates and a return to the
market of first-time buyers.
After bottoming out in November 2016 (at an average of 1.31%), mortgage rates
increased slightly, reaching an average of 1.34% in December[7]. Nexity expects
this gradual increase in rates to continue. The current low level of rates
remains a significant driver of housing demand (rates averaged 1.62% in 2016,
compared with 2.12% in 2015).
-------------------------------------- -------- -------- -----------
Reservations (units and ?m) 2016 2015 % change
-------------------------------------- -------- -------- -----------
New homes in France 15,893 * 11,741 +35.4%
Subdivisions 2,518 2,202 +14.4%
International 479 292 +64.0%
-------------------------------------- -------- -------- -----------
Total reservations (number of units) 18,890 14,235 +32.7%
-------------------------------------- -------- -------- -----------
New homes in France 2,943 * 2,285 +28.8%
Subdivisions 197 166 +18.6%
International 79 42 +89.6%
-------------------------------------- -------- -------- -----------
Total reservations (?m incl. VAT) 3,218 2,493 +29.1%
-------------------------------------- -------- -------- -----------
* Of which 842 Edouard Denis reservations totalling ?138 million
including VAT.
* New homes
In 2016, the Group booked 15,893 net new home reservations in France, up 35% by
volume and 29% by value year on year[8]. Based on initial estimates of the
French market (around 125,000 reservations(6)), Nexity's market share reached an
all-time high of 12.7%, compared with 11.3% in 2015.
Expected revenue from reservations increased sharply, up 29% to ?3,218 million
including VAT. The increase in the volume of reservations was even sharper,
however, as a result of mix effects, including in particular an 11% drop in the
average price of bulk sales and a sharp increase in reservations for homes in
serviced residences (up 58% relative to 2015) and regions with a reduced VAT
rate (up 58% relative to 2015), where unit prices are lower.
In the fourth quarter of 2016, net new home reservations in France totalled
5,201 units, up 23% by volume and 21% by value relative to Q4 2015 (on a like-
for-like basis: up 10% by volume and 9% by value); this slowdown in the growth
rate was mainly driven by a high base effect in the fourth quarter of 2015.
----------------------------------------- ------------- ------------- ---------
Breakdown of new home reservations by
client - France (number of units) -
excluding Edouard Denis 2016 2015 % change
----------------------------------------- ------------- ------------- ---------
Homebuyers 3,716 25% 2,555 22% +45.4%
o/w: - first-time buyers 2,841 19% 1,910 16% +48.7%
- other homebuyers 875 6% 645 5% +35.7%
Individual investors 6,555 44% 5,046 43% +29.9%
Professional landlords 4,780 32% 4,140 35% +15.5%
----------------------------------------- ------------- ------------- ---------
Total new home reservations 15,051 100% 11,741 100% +28.2%
----------------------------------------- ------------- ------------- ---------
Reservations made by first-time buyers were up 49% relative to 2015, buoyed by
urban areas with a reduced VAT rate and the new PTZ interest-free loan scheme,
which entered into force on 1 January 2016.
Reservations by individual investors also increased sharply in 2016 (up 30%
relative to 2015), driven not only by historically low interest rates and
investor appetite for the security of real estate investment but also by the
Pinel scheme, which retained its appeal. This trend is set to continue, with the
scheme extended until the end of 2017.
Reservations made by professional landlords grew more slowly (up 15% relative to
2015), accounting for 32% of all new business (compared with 35% in 2015).
-------------------------------- ------- ------- ------------------------------
Average selling price & floor
area* 2016 2015 % change
-------------------------------- ------- ------- ------------------------------
Average home price incl. VAT -0.2%
per sq.m (?) 3,834 3,843
Average floor area per home
(sq.m) 55.7 55.7 0.0%
Average price incl. VAT per
home (?k) 213.6 214.1 -0.2%
-------------------------------- ------- --------------------------------------
* Excluding bulk reservations, reservations by Iselection, PERL and Edouard
Denis, and international operations
Both average prices including VAT and average floor areas for homes reserved by
Nexity's individual clients held steady over the course of the year.
Seeking to track the market recovery while remaining selective in its
commitments, in 2016 Nexity launched a total of 13,976 units (8% more than in
2015)[9]. Unsold completed stock (103 units) as a proportion of the total supply
for sale (5,661 units[10]) remained very low. The level of pre-selling booked at
the start of construction work remained high, averaging 72% in 2016 (compared
with 67% in 2015).
At end-December 2016, the business potential[11] for new homes was up 6%
relative to end-2015 at 36,367 units, equating to 2.4 years' business (41,813
units including external growth transactions completed in 2016, equating to 2.6
years' business).
* Subdivisions
Subdivision reservations totalled 2,518 units, up 14% relative to 2015,
reflecting the upturn in the market for detached houses. The average price of
net reservations made by individuals increased by 1.7% to ?77.2k, while average
subdivision size was relatively stable (down 0.8%) and the average price per
square metre increased slightly (up 2.5%).
* International
Nexity booked 479 international new home reservations in the year. There were
367 reservations in Poland (56% higher than in 2015). In Italy, developments
were sold at a satisfactory pace (112 reservations) following the implementation
of restructuring and risk reduction measures at the end of 2014.
Commercial real estate[12]
In 2016, ?23.6 billion was invested in commercial real estate in France - still
a high figure, albeit 8% lower than the ?26 billion invested in 2015. Office
space in the Paris region accounted for 74% of these volumes, including prime
assets, which traded at an all-time low yield of 3.00%. The market for VEFA off-
plan contracts for offices remained buoyant (at nearly ?2.3 billion), down
slightly relative to 2015 volumes but with strong growth in speculative deals,
which accounted for 61% of transactions, as investors showed greater risk
appetite and anticipated a shortage of high-quality supply in the rental market.
The rental market proved buoyant in the fourth quarter, with take-up in the
Paris region totalling 679,000 sq.m, bringing take-up (volume of rental
transactions and user sales) in the full year to 2.4 million sq.m, up 7%
relative to 2015.
In the fourth quarter of 2016, Nexity booked new orders totalling ?108 million,
mainly thanks to the off-plan sale to the Yvelines region Caisse d'Allocations
Familiales of a 6,700 sq.m property in Versailles (Yvelines) and the off-plan
sale of hotel space (to a fund managed by Amundi Immobilier) in the Perisight
building in Clichy (Hauts-de-Seine), which complemented the off-plan sale of the
office space in that same building to a fund managed by LaSalle Investment
Management in the third quarter.
Office space business outside the Paris region was very buoyant in 2016,
particularly thanks to the wood-frame segment, which booked orders totalling
?84 million, mainly outside the Paris region, including the off-plan sale of
Block 12 of the Euratechnologies development to BNP Paribas REIM, representing a
floor area of 6,000 sq.m in Lille. Thanks to its Ywood and Térénéo subsidiaries,
Nexity is the French market leader in wood-frame properties, with a total of
almost 40,000 sq.m delivered at 31 December 2016.
New orders in 2016 totalled ?356 million excluding VAT, exceeding the full-year
target of at least ?250 million. The largest order in the year was the off-plan
sale to Crédit Agricole Assurances of the Online building (totalling
18,000 sq.m) in Rueil-Malmaison (Hauts-de-Seine).
Lastly, in January 2017, Nexity signed an off-plan lease with the Île-de-France
region for the Influence 2.0 building in the eco-district of Saint-Ouen (Seine-
Saint-Denis), which will house the future regional council premises, with the
Influence 1 building (previously sold by Nexity to an investor in 2014). The
entire development represents a floor area of almost 57,000 sq.m.
Services
In Real estate services to companies, the floor area of units under management
at end-December 2016 totalled 12.3 million sq.m, up 1% relative to end-2015.
In Real estate services to individuals, the portfolio under management at
31 December 2016 totalled 898,000 units, slightly down relative to end-
December 2015[13] (-1.9%). The brokerage business was particularly buoyant, with
the number of provisional sale agreements signed up 6% relative to 2015. Nexity
Studéa, which specialises in managing student residences, saw its occupancy rate
increase to 89.6% (compared with 87.3% at end-2015).
The digital transformation in real estate services to individuals continued,
notably including the introduction of new customer service tools (paperless
property inspections, private interactive client spaces, etc.) and the
development of connected agencies and disruptive offerings such as E-gérance
(the first fully digital rental management offering).
In Franchise operations, Century 21 and Guy Hoquet l'Immobilier signed 10% more
provisional sale agreements than in 2015 in an exceptionally strong market for
existing real estate in France[14]. After declining for several years, the
number of franchised agencies picked up in the year (with 1,217 agencies at end-
December 2015, compared with 1,206 at end-December 2015).
In 2016, Nexity strengthened its partnership with Aegide-Domitys, the market
leader in non-medical senior serviced residences with an integrated business
model (covering both property development and operation). At 31 December 2016,
Nexity owned 45.16% of Aegide-Domitys, with an option to acquire full control by
2018.
Urban regeneration (Villes & Projets)
At end-December 2016, Nexity's urban regeneration business (Villes & Projets)
had land development potential of 531,500 sq.m[15], with the notable addition to
the portfolio of the Bordeaux Belvédère development, with a floor area of
70,000 sq.m. Furthermore, in the commercial real estate segment, work began on
the iconic project to recreate the neighbourhood around the Versailles-Chantiers
railway station (Yvelines), the second-busiest station in the Paris region.
Digital and Innovation
In line with its strategic plan, in 2016 Nexity continued to invest in
innovative projects focused on digital transformation, including in particular
the following:
* Bien'ici - a next-generation property listings website in which Nexity has a
40% stake alongside a consortium of real estate professionals (Consortium
des Professionnels de l'Immobilier) - continued to receive a growing number
of membership requests from professionals wishing to place paid listings
(with 5,800 member agencies at end-2016).
* Nexity continued to develop a digital management tool for connected homes,
newly rebranded Eugénie. Following delivery of the first smart homes as part
of a real estate development in Paris in 2015, a further four pilot
developments will be fitted out in 2017.
* On 22 February 2017, Nexity's Commercial real estate division will unveil
the Nexity Lab demonstrator at its head office in Paris.
Nexity continues to invest around ?20 million a year in digital technology and
innovation, split between in-house digitisation projects and investment in new
services through direct investments (Blue Office, Bien'ici, E-gérance, etc.) or
through partnerships with start-ups (SpiceSoft, Lucibel, etc.) and investment in
venture capital funds.
Governance[16]
Nexity's strategy and long-term growth model are based on a unique combination
of specialist real estate business lines. Having these different business lines
within a single company enables us to become a truly comprehensive real estate
services provider to spur growth by focusing on Nexity's three client groups:
Individuals, Businesses and Local Authorities.
To align the Group's organisation with this configuration and get all of
Nexity's staff (our Internal Clients) on board, Alain Dinin decided to change
the governance structure by streamlining his senior management team into three
Deputy Chief Executive Officers and a Deputy Managing Director, responsible for
Internal Clients, Individual Clients, Business Clients and Local Authorities.
CONSOLIDATED 2016 RESULTS
Revenue
Nexity generated revenue of ?3,073 million in 2016, stable relative to 2015 (up
0.5%).
------------------------- --------- --------- --------------------------------
? millions 2016 2015 % change
------------------------- --------- --------- --------------------------------
Residential real estate 2,267.4 2,161.7 +4.9%
Commercial real estate 306.9 379.2 -19.1%
Services 494.1 503.8 -1.9%
Other activities 4.3 12.5 -65.7%
------------------------- --------- --------- --------------------------------
Total Group revenue* 3,072.7 3,057.1 +0.5%
------------------------- --------- --------- --------------------------------
* Revenue generated by the Residential and Commercial divisions from VEFA
off-plan sales and CPI development contracts is recognised using the
percentage-of-completion method, i.e. on the basis of notarised sales and
pro-rated to reflect the progress of incurred construction costs.
Residential real estate revenue totalled ?2,267 million, up 5% year on year.
This growth was mainly driven by the contribution from Iselection and PERL,
whose revenue (recognised in full at the point when a notarised deed is signed)
comes in more quickly than for Nexity-branded property development business.
Furthermore, given restatements in the opening balance sheet and remeasurements
of assets and liabilities to fair value as part of the purchase price allocation
(PPA), revenue generated in the year by Edouard Denis made no contribution to
Nexity's consolidated revenue, in spite of being consolidated since 1 July 2016.
In line with Nexity's forecasts, Commercial real estate revenue was down 19%
relative to 2015 at ?307 million, reflecting the construction schedules of
ongoing developments. In 2015, revenue was boosted by significant contributions
from major developments delivered in late 2015 and early 2016 (such as Eco
Campus in Châtillon and Le Nuovo in Clichy, both in Hauts-de-Seine).
The Services division generated revenue of ?494 million, down 1.9% relative to
2015. Stable revenue from property management for individuals (down 0.7%) and
higher revenue from franchise networks (up 8.3%) partly made up for lower
revenue from real estate services to companies and Nexity Studéa (due to the
non-renewal of leases on loss-making residences).
Revenue from Other activities (?4.3 million, compared with ?13 million in 2015)
included sales to third parties of development rights acquired through Villes &
Projets.
In IFRS terms, revenue to end-December 2016 totalled ?2,975 million, up 3%
relative to consolidated revenue for the year ended 31 December 2015
(?2,876 million). This figure excludes revenue from joint ventures, in
accordance with IFRS 11, which requires joint ventures to be accounted for via
the equity method instead of proportionately consolidated as they were
previously.
Current operating profit
Nexity generated current operating profit of ?266 million in 2016, up 21%
relative to 2015 (?220 million). The current operating margin increased by
1.5 percentage points to 8.7%.
---------------------------- ---------- ---------- -----------
? millions 2016 2015 % change
---------------------------- ---------- ---------- -----------
Residential real estate 203.1 186.3 +9.0%
% of revenue 9.0% 8.6%
Commercial real estate 57.1 39.0 +46.5%
% of revenue 18.6% 10.3%
Services 44.8 35.4 +26.4%
% of revenue 9.1% 7.0%
Other activities (38.5) (40.6) ns
---------------------------- ---------- ---------- -----------
Current operating profit 266.5 220.1 +21.1%
% of revenue 8.7% 7.2%
---------------------------- ---------- ---------- -----------
Current operating profit and profit margins increased in all Group divisions in
2016.
In Residential real estate, current operating profit grew 9% year on year (up
?16.8 million), reflecting good progress on housing and subdivision development
projects. The division's current operating margin increased by 0.4 percentage
points, returning to its normative level of 9.0% (compared with 8.6% in 2015).
In Commercial real estate, current operating profit totalled ?57 million in
2016, compared with ?39 million in 2015 (up 46%). The division's current
operating margin was very high (18.6%), higher than its normative level,
reflecting sound financial and technical management of ongoing projects as well
as reversals of provisions on delivered projects.
The Services division generated current operating profit of ?45 million,
compared with ?35 million in 2015, resulting in a sharp rise in its current
operating margin to 9.1% (compared with 7.0% in 2015).
Current operating profit from property management for individuals rose by 22% to
?32 million, resulting in a 1.9 percentage point increase in the current
operating margin to 10.4%, helped by the restructuring of Nexity's real estate
services to individuals business and strong growth in the brokerage business.
The profitability of real estate services to companies continued to be affected
by the reorganisation of Nexity Conseil et Transaction. Nexity Studéa's
profitability improved sharply as a result of the strategy of repositioning its
portfolio of student residences. Very strong profitability in the franchise
networks was mainly driven by increased revenue, improving the absorption of
fixed costs.
The operating loss from Other activities (?39 million in 2016, compared with
?41 million in 2015) includes profit/(loss) from the holding company, research
and overhead costs incurred by Villes & Projets, the development of incubated
start-ups and digital projects[17], and IFRS expenses on share-based payments.
EBITDA[18]
In 2016, Nexity generated total EBITDA of ?305 million, compared with
?260 million in 2015 (up 17%), giving an EBITDA margin of 9.9%, compared with
8.5% in 2015. The EBITDA margin rose in all business lines, notably in
Commercial real estate (up from 10.2% to 18.5%) and Services (up from 9.2% to
11.2%). In Property management for individuals, it rose from 11.7% to 12.9%.
Net profit
--------------------------------------------- --------- --------- -------------
? millions 2016 2015 Change in ?m
--------------------------------------------- --------- --------- -------------
Revenue 3,072.7 3,057.1 15.5
EBITDA 304.7 259.8 44.9
% of revenue 9.9% 8.5%
Current operating profit 266.5 220.1 46.4
Net financial income (expense) (28.0) (20.3) (7.7)
Income taxes (89.0) (73.7) (15.3)
Share of profit (loss) from equity-
accounted investments (7.2) (0.5) (6.6)
Net profit 142.3 125.6 16.8
Non-controlling interests (3.2) (2.0) (1.2)
--------------------------------------------- --------- --------- -------------
Net profit attributable to equity holders 139.1 123.5 15.6
of the parent company
--------------------------------------------- --------- --------- -------------
The net financial expense came in at ?28.0 million, compared with ?20.3 million
in 2015, mainly due to the impact of expenses arising from the redemption of the
2014 OCEANE bonds (?4.8 million).
The tax expense (?89.0 million) increased by ?15.3 million as a result of the
higher profit figure: the effective tax rate held more or less steady at 37.3%
(compared with 37.0% in 2015).
Equity-accounted investments made a ?7.2 million negative contribution (compared
with a ?0.5 million loss in 2015). The main components of this item are the
contributions from Bien'ici, equity-accounted since 1 January 2016, and Ægide-
Domitys.
Net profit attributable to equity holders of the parent company came in at
?139.1 million for the period, compared with ?123.5 million in 2015 (up 13%).
Working Capital Requirement (WCR)
------------------------- -------------- -------------- -------------
? millions 31 Dec. 2016 31 Dec. 2015 Change in ?m
------------------------- -------------- -------------- -------------
Residential real estate 759 589 170
Commercial real estate (3) (10) 7
Services (63) (64) 1
Other activities 2 10 (7)
Total WCR excluding tax 695 525 170
Income taxes (3) 8 (11)
------------------------- -------------- -------------- -------------
Total WCR 692 533 159
------------------------- -------------- -------------- -------------
Operating WCR at 31 December 2016 was ?695 million, ?170 million higher than in
December 2015, largely due to acquisitions in the year in Residential real
estate (?134 million).
Goodwill
Goodwill increased by ?65 million in 2016, ending the year at ?1,214 million
(compared with ?1,149 million at end-2015), as a result of acquisitions in
Residential real estate (+?53 million) and Services (+?12 million).
Cash flows
------------------------------------------------------------ --------- --------
? millions 2016 2015
------------------------------------------------------------ --------- --------
Cash flow from operating activities before financial and
tax expenses 288.8 237.1
Cash flow from operating activities after financial and
tax expenses 181.6 148.9
Change in operating working capital (excluding tax) (27.8) 87.0
Changes in tax-related working capital, dividends from
equity-accounted investments and other 37.1 4.2
Net cash flow from/(used in) operating activities 190.9 240.1
Net cash flow from/(used in) operating investments (23.3) (19.6)
Free cash flow 167.6 220.5
Net cash flow from/(used in) financial investments (57.1) 0.3
Dividend paid by Nexity SA (120.5) (108.4)
Net cash flow from/(used in) financing activities,
excluding dividends (112.0) 41.1
------------------------------------------------------------ --------- --------
Change in cash and cash equivalents (122.0) 153.5
------------------------------------------------------------ --------- --------
Cash flow from operating activities before financial and tax expenses totalled
?289 million, up ?52 million relative to 2015 mainly as a result of the higher
profit figure for the year.
Cash flows from operations decreased slightly to ?191 million (compared with
?240 million in 2015) due to an increase in the operating WCR (excluding changes
in the scope of consolidation).
Operating investments, particularly in IT, increased to ?23 million, compared
with ?20 million in 2015.
Nexity's free cash flow in 2016 was ?168 million, compared with ?221 million the
previous year, comfortably exceeding the dividend payout.
Cash flows used in financial investments totalled ?57 million as a result of
external growth and partnerships formed during the year (excluding commitments
to buy out minority interests and existing debt on external growth
transactions).
Net cash used in financing activities (?112 million) mainly reflected proceeds
from the issue of 2016 OCEANE bonds net of the redemption of the 2014 OCEANE
bonds[19], buyouts of minority interests and net repayments of bank borrowing.
Financial structure
Nexity's consolidated equity (attributable to parent company shareholders) stood
at ?1,589 million at 31 December 2016, compared with ?1,579 million at
31 December 2015, mainly after ?120 million in dividends paid and net profit
attributable to parent company shareholders of ?139 million.
----------------------------------- -------------- -------------- -------------
? millions 31 Dec. 2016 31 Dec. 2015 Change in ?m
----------------------------------- -------------- -------------- -------------
Bond issues (incl. accrued 610.4 538.8 71.6
interest and arrangement costs)
Loans and borrowings 374.9 350.2 24.7
Other financial borrowings and 7.7 11.7 (3.9)
other financial receivables
Net cash and cash equivalents (676.4) (798.4) 122.0
----------------------------------- -------------- -------------- -------------
Net debt 316.6 102.3 214.3
----------------------------------- -------------- -------------- -------------
Net debt increased by ?214 million, mainly as a result of external growth in the
year (?214 million) and the net impact of refinancing the Group's OCEANE bonds
(?31 million). Net cash flows from operations fully covered the increase in
operating WCR, payment of the dividend and investments. At 31 December 2016, net
debt equated to 20% of equity and around 1x EBITDA for the year.
At 31 December 2016, Nexity had authorisations from banks to borrow up to
?1.030 million, including available facilities of ?300 million on its corporate
credit lines (undrawn). At 31 December 2016, the Group had drawn down
?375 million of its authorised credit. At 31 December 2016, Nexity was in
compliance with all of the financial covenants attached to its borrowings and
credit lines.
Backlog - Order book at 31 December 2016
--------------------------------------- -------------- -------------- ---------
? millions, excluding VAT 31 Dec. 2016 31 Dec. 2015 % change
--------------------------------------- -------------- -------------- ---------
Residential real estate - New homes * 3,227 2,573 +25.4%
Residential real estate - 237 233 +1.5%
Subdivisions
Residential real estate backlog 3,464 2,806 +23.4%
Commercial real estate backlog 544 487 +11.7%
--------------------------------------- -------------- -------------- ---------
Total Group backlog 4,008 3,293 +21.7%
--------------------------------------- -------------- -------------- ---------
* Including International, PERL,
Iselection and Edouard Denis
At end-December 2016, the Group's order book stood at ?4,008 million, up 22%
relative to end-2015 and equivalent to 19 months' revenue from Nexity's
development activities[20].
Financial calendar and practical information
Q1 2017 revenue and business activity Tuesday, 25 April 2017
Shareholders' Meeting Thursday, 1 June 2017
2017 interim results Tuesday, 25 July 2017
A conference call on the 2016 annual results will be held in English at
18:30 CET, accessible via the following numbers using code 4522703:
- Calling from France +33 (0)1 76 77 22 57
- Calling from Europe excluding France +44 (0)33 0336 9411
- Calling from the USA +1 719 457 1036
The presentation accompanying this conference call will be available from the
Group's website from 18:15 CET and may be viewed at the following address:
http://edge.media-server.com/m/p/3pz6omzz
A recording of the conference call will be available at
http://www.nexity.fr/immobilier/groupe/finance from the following day.
Disclaimer
______
AT NEXITY, WE AIM TO SERVE ALL OUR CLIENTS AS THEIR REAL ESTATE NEEDS EVOLVE
Nexity offers the widest range of advice and expertise, products, services and
solutions for private individuals, companies and local authorities, so as to
best meet the needs of our clients and respond to their concerns.
Our business lines - real estate brokerage, management, design, development,
planning, advisory and related services - are now optimally organised to serve
and support our clients. As the benchmark operator in our sector, we are
resolutely committed to all of our clients, but also to the environment and
society as a whole.
Nexity is listed on the SRD and on Euronext's Compartment A
Member of the following indices: SBF 80, SBF 120, CAC Mid 60, CAC Mid & Small
and CAC All Tradable
Ticker symbol: NXI - Reuters: NXI.PA - Bloomberg: NXI FP
ISIN: FR0010112524
______
CONTACT
Domitille Vielle - Head of Investor Relations / +33 (0)1 85 55 19 34 -
investorrelations(at)nexity.fr
Géraldine Bop - Deputy Head of Investor Relations / +33 (0)1 85 55 18 43 -
investorrelations(at)nexity.fr
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 4 of the Document de Référence filed
with the AMF on 13 April 2016 under number D.16-0325 could have an impact on the
Group's business and the Company's ability to achieve its objectives.
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.
ANNEXES
QUARTERLY FIGURES
OPERATIONAL REPORTING (In accordance with IFRS but with joint ventures
proportionately consolidated)
Reservations: Residential real estate division
------------------------- ------------------------- ------------------------
2016 2015 2014
------------------------- ------------------------- ------------------------
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
------------------------- ------------------------- ------------------------
Number of
units
--------------- ------------------------- ------------------------- ------------------------
New homes
(France) 5,201 3,624 4,121 2,947 4,237 2,368 2,949 2,187 3,653 2,175 2,722 1,815
- o/w Edouard
Denis 547 295
Subdivisions 1,027 420 654 417 925 400 556 321 836 395 547 326
International 141 95 170 73 133 103 42 14 7 73 10 3
--------------- ------------------------- ------------------------- ------------------------
Total (number 6,369 4,139 4,945 3,437 5,295 2,871 3,547 2,522 4,496 2,643 3,279 2,144
of units)
--------------- ------------------------- ------------------------- ------------------------
Value (?m
incl. VAT)
--------------- ------------------------- ------------------------- ------------------------
New homes
(France) 969 666 772 536 803 473 595 415 677 419 475 353
- o/w Edouard
Denis 90 48
Subdivisions 87 30 48 32 69 29 45 23 63 29 42 29
International 21 17 28 13 19 15 6 2 2 10 1 -2
--------------- ------------------------- ------------------------- ------------------------
Total (?m 1,076 713 848 581 891 516 646 440 742 458 518 380
incl. VAT)
--------------- ------------------------- ------------------------- ------------------------
Revenue by division
--------------------------- --------------------------- ------------------------
2016 2015 2014
--------------------------- --------------------------- ------------------------
? millions Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
------------- --------------------------- --------------------------- ------------------------
Residential
real estate 809.9 475.4 549.3 432.8 809.3 460.3 531.5 360.5 672.4 425.2 394.4 340.7
Commercial
real estate 117.5 60.6 61.3 67.6 74.2 102.8 116.5 85.7 104.6 58.2 49.4 55.4
Services 125.6 124.8 122.8 120.9 131.3 129.8 121.2 121.5 131.2 122.9 123.6 106.6
Other
activities 0.9 0.6 2.1 0.7 1.3 1.2 9.0 1.0 1.4 1.4 42.5 1.9
------------- --------------------------- --------------------------- ------------------------
GROUP 1,053.8 661.4 735.6 621.9 1,016.0 694.1 778.2 568.7 909.6 607.7 610.0 504.6
------------- --------------------------- --------------------------- ------------------------
CONSOLIDATED INCOME STATEMENT -
31 DECEMBER 2016
OPERATIONAL REPORTING (In accordance with IFRS but with joint ventures
proportionately consolidated)
------------------------------------------------------ ------------------------
? thousands 31/12/2016 31/12/2015
------------------------------------------------------ ------------------------
Revenue 3,072,659 3,057,132
Purchases (2,010,675) (2,085,724)
Personnel costs (501,758) (476,160)
Other operating expenses (238,275) (219,611)
Taxes (other than income tax) (32,166) (30,807)
Depreciation, amortisation and impairment (23,301) (24,731)
------------------------------------------------------ ------------------------
Current operating profit 266,484 220,099
------------------------------------------------------ ------------------------
------------------------------------------------------ ------------------------
Operating profit 266,484 220,099
------------------------------------------------------ ------------------------
Financial expense (39,509) (30,631)
Financial income 11,498 10,334
------------------------------------------------------ ------------------------
Net financial income/(expense) (28,011) (20,297)
------------------------------------------------------ ------------------------
------------------------------------------------------ ------------------------
Recurring pre-tax profit 238,473 199,802
------------------------------------------------------ ------------------------
Income taxes (88,960) (73,693)
Share of net profit/(loss) from equity-accounted (7,167) (547)
investments
------------------------------------------------------ ------------------------
Net profit 142,346 125,562
------------------------------------------------------ ------------------------
Net profit attributable to equity holders of the 139,113 123,521
parent company
------------------------------------------------------ ------------------------
Net profit attributable to non-controlling interests 3,233 2,041
------------------------------------------------------ ------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION -
31 DECEMBER 2016
OPERATIONAL REPORTING (In accordance with IFRS but with joint ventures
proportionately consolidated)
-------------------------------------------------------- ----------------------
ASSETS 31/12/2016 31/12/2015
? thousands
-------------------------------------------------------- ----------------------
Non-current assets
Goodwill 1,213,627 1,148,836
Other intangible assets 63,904 61,388
Property, plant and equipment 49,816 49,003
Equity-accounted investments 28,063 10,254
Other financial assets 40,981 40,256
Deferred tax assets 8,092 10,038
-------------------------------------------------------- ----------------------
Total non-current assets 1,404,483 1,319,775
-------------------------------------------------------- ----------------------
Current assets
Inventories and work in progress 1,618,141 1,431,023
Trade and other receivables 438,313 411,673
Tax receivable 5,868 8,598
Other current assets ((1)) 1,165,093 1,101,458
Other financial receivables 31,045 20,423
Cash and cash equivalents 697,616 837,111
-------------------------------------------------------- ----------------------
Total current assets 3,956,076 3,810,286
-------------------------------------------------------- ----------------------
Total assets 5,360,559 5,130,061
-------------------------------------------------------- ----------------------
((1)) Of which client working capital accounts 673,152 684,109
(Services)
-------------------------------------------------------- ----------------------
LIABILITIES AND EQUITY 2016 2015
? thousands
-------------------------------------------------------- ----------------------
Equity
Share capital 274,045 270,945
Additional paid-in capital 778,546 915,255
Treasury shares - -
Reserves and retained earnings 397,568 269,376
Net profit for the period 139,113 123,521
-------------------------------------------------------- ----------------------
Equity attributable to equity holders of the parent 1,589,272 1,579,097
company
-------------------------------------------------------- ----------------------
Non-controlling interests 4,866 2,279
-------------------------------------------------------- ----------------------
Total equity 1,594,138 1,581,376
-------------------------------------------------------- ----------------------
Non-current liabilities
Long-term borrowings and financial debt 728,419 632,047
Employee benefits 29,553 28,541
Deferred tax liabilities 56,010 39,494
-------------------------------------------------------- ----------------------
Total non-current liabilities 813,982 700,082
-------------------------------------------------------- ----------------------
Current liabilities
Short-term borrowings, financial debt and operating
liabilities ((1)) 316,831 327,790
Current provisions 99,987 101,137
Trade and other payables 887,074 772,375
Current tax liabilities 9,065 538
Other current liabilities ((2)) 1,639,482 1,646,763
-------------------------------------------------------- ----------------------
Total current liabilities 2,952,439 2,848,603
-------------------------------------------------------- ----------------------
Total liabilities and equity 5,360,559 5,130,061
-------------------------------------------------------- ----------------------
((1)) Of which bank overdrafts 21,207 38,723
((2)) Of which client working capital accounts 673,152 684,109
(Services)
EBITDA BY DIVISION
OPERATIONAL REPORTING (In accordance with IFRS but with joint ventures
proportionately consolidated)
Nexity defines EBITDA as follows: current operating profit + depreciation and
amortisation + provisions for liabilities and charges net of reversals + IFRS
expenses on free shares + interest expense transferred from inventories. EBITDA
is an alternative indicator of performance which is reconciled with current
operating profit as follows.
------------------------------ ------------------------------
2016 2015
------------------------------ ------------------------------ -------
Current Current %
? millions operating Adjustments EBITDA operating Adjustments EBITDA change
profit profit in
EBITDA
------------- ------------------------------ ------------------------------ -------
Residential +11.0%
real estate 203.1 7.1 210.2 186.3 3.0 189.3
% of
revenue 9.0% 9.3% 8.6% 8.8%
Commercial +46.6%
real estate 57.1 (0.3) 56.8 39.0 (0.2) 38.8
% of
revenue 18.6% 18.5% 10.3% 10.2%
Services 44.8 10.6 55.4 35.4 10.9 46.3 +19.5%
% of
revenue 9.1% 11.2% 7.0% 9.2%
Other N/A
activities (38.5) 20.9 (17.7) (40.6) 26.0 (14.6)
------------- ------------------------------ ------------------------------ -------
GROUP 266.5 38.2 304.7 220.1 39.7 259.8 +17.3%
% of
revenue 8.7% 9.9% 7.2% 8.5%
------------- ------------------------------ ------------------------------ -------
HALF-YEAR FIGURES BY DIVISION
OPERATIONAL REPORTING (In accordance with IFRS but with joint ventures
proportionately consolidated)
CURRENT OPERATING PROFIT
--------------------- ---------------------- --------------------
2016 2015 2014
--------------------- ---------------------- --------------------
? millions FY H2 H1 FY H2 H1 FY H2 H1
------------- --------------------- ---------------------- --------------------
Residential
real estate 203.1 123.7 79.4 186.3 117.1 69.2 142.8 84.2 58.6
Commercial
real estate 57.1 35.3 21.9 39.0 16.8 22.2 45.6 32.4 13.2
Services 44.8 29.4 15.4 35.4 23.3 12.1 26.7 15.7 11.0
Other
activities (38.5) (28.6) (9.9) (40.6) (29.5) (11.1) (31.4) (21.8) (9.6)
------------- --------------------- ---------------------- --------------------
GROUP 266.5 159.8 106.7 220.1 127.8 92.3 183.7 110.5 73.2
------------- --------------------- ---------------------- --------------------
EBITDA
--------------------- --------------------- ------------------
2016 2015 2014
--------------------- --------------------- ------------------
? millions FY H2 H1 FY H2 H1 FY H2 H1
---------------- ------------------------------------------- ------------------
Residential
real estate 210.2 131.7 78.4 189.3 121.2 68.1 152.4 90.4 62.0
Commercial
real estate 56.8 33.9 22.9 38.8 20.3 18.5 41.2 31.0 10.1
Services 55.4 36.6 18.8 46.3 32.6 13.7 36.1 23.9 12.3
Other
activities (17.7) (16.8) (0.9) (14.6) (13.4) (1.2) (9.1) (8.0) (1.1)
---------------- --------------------- --------------------- ------------------
GROUP 304.7 185.4 119.3 259.8 160.6 99.2 220.7 137.3 83.4
---------------- --------------------- --------------------- ------------------
CONSOLIDATED INCOME STATEMENT -
31 DECEMBER 2016 (IFRS)
------------------------------------------------------ ------------------------
? thousands 31/12/2016 31/12/2015
------------------------------------------------------ ------------------------
Revenue 2,975,430 2,875,898
Purchases (1,933,077) (1,926,265)
Personnel costs (501,740) (476,139)
Other operating expenses (236,791) (217,933)
Taxes (other than income tax) (31,555) (29,916)
Depreciation, amortisation and impairment (23,301) (25,003)
------------------------------------------------------ ------------------------
Current operating profit 248,966 200,642
------------------------------------------------------ ------------------------
------------------------------------------------------ ------------------------
Operating profit 248,966 200,642
------------------------------------------------------ ------------------------
Share of profit from equity-accounted investments 13,908 15,454
------------------------------------------------------ ------------------------
Operating profit after share of profit from equity- 262,874 216,096
accounted investments
------------------------------------------------------ ------------------------
Financial expense (39,184) (30,489)
Financial income 11,687 10,552
------------------------------------------------------ ------------------------
Net financial income/(expense) (27,497) (19,937)
------------------------------------------------------ ------------------------
------------------------------------------------------ ------------------------
Recurring pre-tax profit 235,377 196,159
------------------------------------------------------ ------------------------
Income taxes (85,864) (70,050)
Share of net profit/(loss) from equity-accounted (7,167) (547)
investments
------------------------------------------------------ ------------------------
Net profit 142,346 125,562
------------------------------------------------------ ------------------------
Net profit attributable to equity holders of the 139,113 123,521
parent company
------------------------------------------------------ ------------------------
Net profit attributable to non-controlling interests 3,233 2,041
------------------------------------------------------ ------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION -
31 DECEMBER 2016 (IFRS)
-------------------------------------------------------- ----------------------
ASSETS 31/12/2016 31/12/2015
? thousands
-------------------------------------------------------- ----------------------
Non-current assets
Goodwill 1,213,627 1,148,836
Other intangible assets 63,904 61,388
Property, plant and equipment 49,816 49,003
Equity-accounted investments 46,597 30,527
Other financial assets 42,256 43,238
Deferred tax assets 7,330 7,907
-------------------------------------------------------- ----------------------
Total non-current assets 1,423,530 1,340,899
-------------------------------------------------------- ----------------------
Current assets
Inventories and work in progress 1,523,197 1,326,851
Trade and other receivables 435,156 385,618
Tax receivable 5,064 8,270
Oth
Unternehmensinformation / Kurzprofil:
Datum: 21.02.2017 - 17:45 Uhr
Sprache: Deutsch
News-ID 525550
Anzahl Zeichen: 65579
contact information:
Town:
Paris-la-Défense
Kategorie:
Business News
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