Nexity : Results for the first half of 2017
(Thomson Reuters ONE) -
RESULTS FOR THE FIRST HALF OF 2017
Paris, Tuesday, 25 July 2017
ROBUST BUSINESS ACTIVITY
* 9,096 reservations in residential real estate, of which 7,794 new home
reservations in France (up 10% by volume and 16% by value[1])
* Commercial real estate order intake: ?77 million
* Development backlog: ?4.2 billion (5% higher than at 31 December 2016)
STRONGER FINANCIAL PERFORMANCE
* Revenue: ?1.46 billion (up 8% from H1 2016)
* Current operating profit: ?124 million (up 16% from H1 2016); operating
margin 8.5% (up 0.6 points from H1 2016)
* Net profit: ?62 million (up 18% from H1 2016)
* Net debt: ?416 million (gearing ratio[2] 27%)
OUTLOOK CONFIRMED
* Growth in Nexity's new home reservations in a French market expected to be
stable in 2017 (126,300 reservations), with Nexity growing its market share
by around 1 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 (up 13% from 2016)
and ?325 million in 2018
* Dividend per share stable at ?2.40 in 2018[3]
Alain Dinin, Chairman and CEO of Nexity, commented:
'Between January and June 2017, Nexity registered a total of over 9,000
reservations in residential real estate (new homes in France, international
developments and subdivisions), an unprecedented level for the first half of the
year. Demand for new homes remains buoyant, supported by continuing very low
interest rates, well-calibrated tax measures, and consumer confidence that is
returning to high levels.
France got a new government a month ago. According to well-established
tradition, at the beginning of each five-year presidential term of office, newly
elected leaders review housing policy and consider making more or less
significant changes to it. We trust that our leaders will remember the
experiment conducted between 2012 and 2014, and its effects on jobs and growth,
and that they will maintain - and if necessary adjust - policies that promote a
balanced budget and benefit society as a whole if they are targeted at supply-
constrained areas. Decisions have yet to be made, and Nexity, whose operating
model is flexible and responsive and has proved its resilience, is ready for
these changes. More fundamentally, elements of demographic growth in France
imply medium- to long-term potential for French housing markets.
From a financial perspective, Nexity has seen revenue increase by 8% and current
operating profit by 16% relative to the first half of 2016. All business lines
posted strong performance, and services businesses continued on an improving
trajectory. We confirm all guidance issued to the market at the start of the
year. And the company as a whole is continuing its transformation into a truly
comprehensive real estate services provider, with a structure firmly focused on
its clients' concerns and expectations.'
***
At its meeting on 25 July 2017, chaired by Alain Dinin, Nexity's Board of
Directors reviewed and approved the condensed Group's consolidated financial
statements for the half-year period ended 30 June 2017, which can be found in
the annexes of this press release. The 2017 half-year financial statements were
subject to a limited review by the Statutory Auditors of the Company.
Business activity in H1 2017
Residential real estate
In the first half of 2017, the French retail market for new homes appeared to
stabilise at a high level thanks to the range of support measures currently in
force and continuing very low interest rates. The market was also helped by
strong growth in the consumer confidence index.
Revised statistics from France's Commissariat Général au Développement Durable
(General Commission on Sustainable Development) indicate that new home
reservations reached a record high in 2016, at 126,300, in a French market where
the medium-term trend for housing needs remains positive, particularly due to
expected future growth in the French population and continuing urbanisation.
After hitting a low point in November 2016 (1.31% on average), mortgage rates
started to rise again, reaching 1.57% on average in June 2017[4], thus returning
to their level at the start of the summer in 2016, with financing terms for
clients (for both new-build and existing properties) remaining very attractive
throughout the period.
--------------------------------- --------- ------------------------- ---------
Reservations (units and ?m) H1 2017 H1 2016 Change %
--------------------------------- --------- ------------------------- ---------
New homes (France) 7,794 7,068 +10.3%
o/w external growth* 812
Subdivisions 1,159 1,071 +8.2%
International 143 243 -41.2%
--------------------------------- --------- ------------------------- ---------
Total reservations (number of 9,096 8,382 +8.5%
units)
--------------------------------- --------- ------------------------- ---------
New homes (France) 1,513 1,308 +15.6%
o/w external growth* 157
Subdivisions 88 80 +10.1%
International 23 41 -44.2%
--------------------------------- --------- ------------------------- ---------
Total reservations (?m incl. 1,624 1,429 +13.6%
VAT)
--------------------------------- --------- ------------------------- ---------
* Edouard Denis has been consolidated since 1 July 2016 and
Primosud since 31 December 2016.
New homes
In the first half of 2017, net new home reservations in France totalled 7,794
units, up 10% compared to the first half of 2016. Expected revenue from
reservations came to ?1,513 million including VAT, 16% higher than in the first
half of 2016. Growth in expected revenue from reservations outpaced growth in
the volume of reservations over the period as a result of mix effects, in
particular a higher proportion of non-social housing bulk sales (19% in H1 2017
versus 5% in H1 2016) and a slight increase in the sale price to individuals,
especially outside the Paris region.
After adjusting to exclude external growth transactions, a total of 6,982 units
were reserved in the first half of 2017, slightly lower than in the first half
of 2016 (down 1%), mainly due to a high base effect. The corresponding expected
revenue from reservations was ?1,356 million including VAT, an increase of 4%
compared to the first half of 2016. On a like-for-like basis over the two-year
period since H1 2015, this increase was 36% in volume and 34% in value.
Steady progress continued to be made on integrating the businesses acquired
through external growth transactions in 2016. Edouard Denis is expected to book
at least 2,000 reservations in 2017. The Group has confirmed its target of
growing its market share by 1 percentage point relative to 2016.
-------------------------------------------------- -------------- -------------
Breakdown of new home reservations by client -
France (number of units)
On a like-for-like basis H1 2017 H1 2016
-------------------------------------------------- -------------- -------------
Homebuyers 1,931 28% 2,027 29%
o/w: - first-time buyers 1,444 21% 1,542 22%
- other homebuyers 487 7% 485 7%
Individual investors 3,261 47% 3,433 49%
Professional landlords 1,790 26% 1,608 23%
-------------------------------------------------- -------------- -------------
Total new home reservations 6,982 100% 7,068 100%
-------------------------------------------------- -------------- -------------
Due to a particularly high base effect in the first half of 2016, reservations
by first-time buyers and individual investors declined by 6% and 5%,
respectively, in the first half of 2017. Individual investors accounted for 47%
of Nexity's new home reservations in France during H1 2017. Investors benefiting
from the Pinel scheme represented around 25% of new home reservations over the
last couple of years.
Reservations made by professional landlords were up 11% from the first half of
2016, accounting for 26% of all new business (compared with 23% in H1 2016).
In terms of geographic breakdown, reservations in the first half of 2017 were
buoyant in the Paris region (up 9%), buoyed by a sharp increase in bulk sales
(2.2 times higher than in H1 2016), while reservations by individuals slowed
over the same period (down 13%).
------------------------------ --------- ---------------------------- ---------
Average selling price &
floor area* H1 2017 H1 2016 Change %
------------------------------ --------- ---------------------------- ---------
Average home price incl. VAT +2.7%
per sq.m (?) 3,857 3,757
Average floor area per home
(sq.m) 56.7 55.9 +1.4%
Average price incl. VAT per
home (?k) 218.8 210.2 +4.1%
------------------------------ ------------------------------------------------
* Excluding bulk reservations; reservations by Iselection, PERL,
Edouard Denis and Primosud; and international operations
The average price including VAT of new homes reserved by Nexity's individual
clients in the first half of 2017 was 4% higher than in the first half of 2016,
with an increase in the average price per square metre and the average floor
area per unit.
Nexity launched a total of 9,431 units in the first half of 2017 (25% more than
in H1 2016[5]). Unsold completed stock (118 units) as a proportion of the total
supply for sale (6,673 units) remained very low. The average level of pre-
selling booked at the start of construction work came to 79% in the first half
of 2017 (compared with 72% in H1 2016), an exceptionally high level.
At end-June 2017, the business potential[6] for new homes was up 22% from end-
June 2016 and came to 43,616 units, the equivalent of 2.6 years of development
operations.
Subdivisions
Subdivision reservations totalled 1,159 units, 8% higher than in the first half
of 2016, reflecting the vitality of the single-family home market. The average
price of reservations by individuals grew by 4% to ?77k.
International
Nexity recorded 143 international new home reservations in the first half of
2017, mainly in Poland. The decline relative to the first half of 2016 was
linked to the sell-off of stock in Italy.
Commercial real estate[7]
Commitments in the French investment market totalled ?6.8 billion in the first
half of 2017, 27% lower than in the first half of 2016. Office assets accounted
for almost 76% of such investments, with prime premium rates remaining stable
after having steadily declined since 2008.
The market for office space in the Paris region reached almost 1.2 million sq.m
marketed in the first half of 2017, up 4% year-on-year. Prime headline rents
were up slightly relative to the previous quarter.
Nexity booked orders totalling ?77 million at end-June 2017.
During the first half of 2017, Nexity acquired the property assets of the French
headquarters of US company 3M, located in Cergy-Pontoise (Val-d'Oise). Plans are
in place to build a new five-storey, 11,000-square-metre building for 3M, which
has been sold off-plan to a private real estate company and is scheduled for
delivery in the first quarter of 2019. At the same time, plans to build over
1,000 residential units - including a Domitys senior independent-living
residence - will also be developed in place of the former office tower. This
mixed-use, multi-product project illustrates the synergies between the Group's
various business lines (Residential real estate, Commercial real estate and
Nexity Conseil et Transaction).
Nexity has also agreed the off-plan sale of a building at the Euratechnologie
business park in Lille (Nord). The project, developed by Térénéo, consists of a
five-storey wood-frame office building with a total floor area of around
8,500 sq.m, rented by Capgemini.
Furthermore, during the first half of the year, Nexity took over the property
portfolio of developer Thalium Promotion, enabling the Group to expand its
geographic footprint in the Nouvelle-Aquitaine and Occitanie regions.
Deals in the set-up phase are progressing satisfactorily, and should be marketed
starting in the second half of 2017.
Services
In Real estate services to companies, the floor area under management at end-
June 2017 totalled 11.7 million sq.m, down 5% from end-December 2016, mainly as
a result of the expiry of a management contract for more than 530,000 sq.m.
In Real estate services to individuals, the portfolio under management totalled
887,000 units at 30 June 2017, eroding slightly over the period (down 1.2%) but
lower than in the first half of 2016 (down 2.6%). The brokerage business was
buoyant, with the number of provisional sale agreements signed up 4% relative to
end-June 2016.
In Franchise operations, Century 21 and Guy Hoquet l'Immobilier signed 8% more
provisional sale agreements in the first half of 2017 than during the same
period the previous year, in a French market for existing properties having
reached an all-time high at end-June 2017[8]. The number of franchisees grew in
the first half of 2017, totalling 1,257 agencies at end-June 2017 versus 1,217
at end-December 2016.
Urban regeneration (Villes & Projets)
At end-June 2017, Nexity's urban regeneration business (Villes & Projets) had
land development potential of 508,000 sq.m[9], with the notable addition to the
portfolio of a residential development located in Villenave-d'Ornon (near
Bordeaux), with a floor area of nearly 9,000 sq.m.
Digital and Innovation
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.),
partnerships with start-ups and investments with venture capital funds.
In the first half of 2017, Nexity:
* opened Le Lab, an in-house demonstrator dedicated to enterprise clients, at
the Group's Paris headquarters, together with a new Blue Office shared
office space (third-party office and co-working space for companies,
freelancers and start-ups);
* signed a contract with Atos to deliver a Blue Office at its Bezons campus
(Val-d'Oise);
* launched in Lyon (Rhône), for the first time in France, an entirely online
sales campaign for a large-scale new home development (Vill'Arboréa: 425
units); and
* launched Connect', Nexity Conseil et Transaction's interactive and immersive
new space in Paris (on Avenue de la Grande Armée), in partnership with an
ecosystem of French start-ups and established businesses, providing
investors and end-users with optimal conditions to develop their real estate
strategy.
In addition, Bien'ici - a next-generation property listings website in which
Nexity has a 48% stake alongside a consortium of real estate professionals
(Consortium des Professionnels de l'Immobilier) - continued to receive a growing
number of membership requests from professionals wishing to place paid listings
(with 6,800 member agencies at 30 June 2017).
National advertising campaign
After having brought all of its business lines under a single brand in 2012, and
following its two previous national advertising campaigns in 2013 and 2014, on
4 June 2017, Nexity launched a moving new television and digital media campaign
with the aim of firmly establishing the Group's brand image as a comprehensive
real estate services provider.
Governance
As from 9 June 2017[10], the members of the Executive Committee, led by Alain
Dinin, Chairman and CEO, are as follows:
* Véronique Bédague-Hamilius, Company Secretary, in charge of Commercial and
Local Authority Clients;
* Julien Carmona, Deputy CEO in charge of Internal Clients;
* Jean-Philippe Ruggieri, Deputy CEO in charge of Individual Clients, and
President of Nexity's Residential and Commercial real estate development
business; and
* Frédéric Verdavaine, Deputy Managing Director in charge of Individual
Clients, and President of Nexity's Real estate services to individuals
business.
This new organisation is part of Nexity's transition to its role as a
comprehensive real estate services provider, focused on each of its client
categories and structured by business line.
CONSOLIDATED RESULTS
Revenue
In the first half of 2017, Nexity recorded revenue of ?1,464 million, increasing
across all the Group's business lines and globally up 8% relative to the first
half of 2016. On a like-for-like basis, excluding Edouard Denis and Primosud,
Group's revenue for the first half 2017 came to ?1,445 million, up 6% compared
to H1 2016.
--------------------------- ----------- ----------- -----------
? millions H1 2017 H1 2016 Change %
--------------------------- ----------- ----------- -----------
Residential real estate 1,073.6 982.2 +9.3%
Commercial real estate 142.4 128.8 +10.6%
Services 245.6 243.7 +0.8%
Other activities 2.8 2.8 +0.4%
--------------------------- ----------- ----------- -----------
Total Group revenue* 1,464.5 1,357.5 +7.9%
--------------------------- ----------- ----------- -----------
* 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 ?1,074 million, up 9% compared to H1
2016. This growth reflects the increase in the division's backlog observed over
the previous quarters.
On a like-for-like basis, division's revenue for the first half of 2017 came to
?1,054 million. Revenue generated in the first half of 2017 by Edouard Denis and
Primosud (?84 million) is only recognised in the amount of ?19 million as part
of consolidated revenue due to the adjustment for the effects of PPA (purchase
price allocation), which involves the elimination of the portion of revenue
relating to business activity prior to the acquisitions.
Revenue for the Commercial real estate division was substantially higher than in
the first half of 2016 (up 11%), at ?142 million, reflecting the ramp-up of
projects signed in 2015 and 2016, particularly those outside the Paris region.
The Services division recognised revenue of ?246 million, up 1% from H1 2016.
Higher revenue from property management for individuals and franchise networks
offset lower revenue from real estate services to companies and Nexity Studéa
(due to the voluntary non-renewal of less-profitable operating contracts).
As in the first half of 2016, revenue from Other activities was not significant.
In IFRS terms, revenue for the first half of 2017 was ?1,402 million, up 7%
relative to consolidated revenue of ?1,316 million in the first half of 2016.
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's current operating profit was ?124 million in the first half of 2017
(compared with ?107 million in H1 2016), up 16%.
The current operating margin increased by 0.6 percentage points to 8.5%.
---------------------------- ----------- ----------- -----------
? millions H1 2017 H1 2016 Change %
---------------------------- ----------- ----------- -----------
Residential real estate 86.4 79.4 +8.9%
% of revenue 8.0% 8.1%
Commercial real estate 30.4 21.9 +39.1%
% of revenue 21.4% 17.0%
Services 18.7 15.4 +21.7%
% of revenue 7.6% 6.3%
Other activities (11.7) (9.9) ns
---------------------------- ----------- ----------- -----------
Current operating profit 123.9 106.7 +16.1%
% of revenue 8.5% 7.9%
---------------------------- ----------- ----------- -----------
In Residential real estate, current operating profit grew 9% (up ?7.0 million
compared to H1 2016), reflecting good progress on housing and subdivision
development projects. The division's current operating margin was nearly stable
(down 0.1 percentage points). Nexity expects an improvement in this operating
margin during the second half of 2017.
In Commercial real estate, current operating profit totalled ?30 million in the
first half of 2017, compared with ?22 million in the first half of 2016 (up
39%). The division's current operating margin saw exceptional growth, rising to
21.4%, which was significantly higher than usual, reflecting excellent financial
and technical management of ongoing projects as well as reversals of provisions
on delivered projects.
The Services division generated current operating profit of ?19 million,
compared with ?15 million in the first half of 2016, resulting in a sharp rise
in its current operating margin to 7.6% (compared with 6.3% in H1 2016).
Current operating profit from property management for individuals rose by 27% to
?15 million, resulting in a 2.0 percentage points increase in the current
operating margin to 9.9%, helped by good control of overhead costs and strong
growth in the brokerage business. Nexity Studéa's profitability continued to
rise, due in particular to improvements in occupancy rates. The franchise
networks had an earnings-enhancing impact on the operating margin for the
Services division. The profitability of real estate services to companies
continued to be affected by the ongoing reorganisation of Nexity Conseil et
Transaction.
The operating loss from Other activities (?12 million in H1 2017, compared with
?10 million in H1 2016) includes loss from the holding company, research and
overhead costs incurred by Villes & Projets, the development of incubated start-
ups and digital projects[11], and a portion of the IFRS expenses on share-based
payments.
EBITDA[12]
In the first half of 2017, Nexity generated total EBITDA of ?139 million,
compared with ?119 million in the first half of 2016 (up 16%), giving an EBITDA
margin of 9.5%, compared with 8.8% in H1 2016. The EBITDA margin rose in all
business lines, notably in Commercial real estate (up from 17.8% to 21.6%) and
Services (up from 7.7% to 9.7%). In Property management for individuals, it rose
from 9.3% to 11.8%.
Net profit
--------------------------------------------- --------- --------- -------------
? millions H1 2017 H1 2016 Change in ?m
--------------------------------------------- --------- --------- -------------
Consolidated revenue 1,464.5 1,357.5 107.0
EBITDA 138.9 119.3 19.6
% of revenue 9.5% 8.8%
Operating profit 123.9 106.7 17.2
Net financial income/(expense) (14.9) (14.8) (0.1)
Income taxes (39.7) (34.9) (4.8)
Share of profit/(loss) from equity- (5.1) (3.4) (1.8)
accounted investments
Net profit 64.1 53.6 10.4
Non-controlling interests (2.0) (1.1) (0.9)
--------------------------------------------- --------- --------- -------------
Net profit attributable to equity holders 62.0 52.5 9.5
of the parent company
--------------------------------------------- --------- --------- -------------
Net financial expense was stable in the first half of 2017 at ?14.9 million
(?14.8 million in H1 2016). In 2017, it included the impact of expenses related
to the early redemption of ?65 million in bonds issued in 2013 and originally
due to mature in 2018, for ?3.1 million, whereas the net financial expense in H1
2016 had included a ?4.8 million expense related to the redemption of 2014
OCEANE bonds. After restating for these items, the increase in net financial
expense reflects the controlled increase in the Group's debt.
The tax expense (?39.7 million) increased by ?4.8 million as a result of the
higher taxable profit figure. The effective tax rate fell to 36.3% (38.0% in H1
2016), which was still higher than the usual rate of 34.4%.
Equity-accounted investments made a ?5.1 million negative contribution (compared
with a ?3.4 million loss in H1 2016) and mainly reflected the contributions of
Bien'ici and Ægide-Domitys.
Net profit attributable to equity holders of the parent company grew by 18% to
?62.0 million for the period, compared with ?52.5 million in H1 2016.
Working Capital Requirement (WCR)
------------------------- -------------- -------------- -------------
? millions 30 June 2017 31 Dec. 2016 Change in ?m
------------------------- -------------- -------------- -------------
Residential real estate 700 759 (59)
Commercial real estate 68 (3) 71
Services (48) (63) 15
Other activities 2 2 (0)
Total WCR excluding tax 722 695 27
Corporate income tax 12 (3) 15
------------------------- -------------- -------------- -------------
Total WCR 734 692 42
------------------------- -------------- -------------- -------------
Operating WCR at 30 June 2017 was ?722 million, up ?27 million from its level in
December 2016. This change was mainly due to the rise in WCR for Commercial real
estate (up ?71 million), resulting in particular from unfavourable client
payment schedules in the period, which are expected to remain a factor in the
coming quarters. Conversely, WCR for Residential real estate improved (down ?59
million in H1 2017), reflecting the successful sale of projects.
Cash flows
------------------------------------------------------------ --------- --------
? millions H1 2017 H1 2016
------------------------------------------------------------ --------- --------
Cash flow from operating activities before financial and
tax expenses 131.8 114.3
Cash flow from operating activities after financial and
tax expenses 80.9 71.3
Change in operating working capital (excluding tax) (20.3) (8.9)
Changes in tax-related working capital, dividends from
equity-accounted investments and other (3.6) 15.5
Net cash flow from/(used in) operating activities 57.0 77.9
Net cash flow from/(used in) operating investments (15.4) (9.8)
Free cash flow 41.6 68.1
Net cash flow from/(used in) financial investments (2.6) (55.2)
Dividends paid by Nexity SA (132.7) (120.5)
Net cash flow from/(used in) financing activities,
excluding dividends 59.1 (40.8)
------------------------------------------------------------ --------- --------
Change in cash and cash equivalents (34.6) (148.4)
------------------------------------------------------------ --------- --------
Cash flow from operating activities before financial and tax expenses totalled
?132 million, up ?18 million relative to H1 2016, mainly as a result of the
higher profit figure for the period.
Cash flows from operations decreased to ?57 million (compared with ?78 million
in H1 2016) due to an increase in operating WCR and in corporate income tax.
Operating investments, particularly in IT and digital, increased to ?15 million,
compared with ?10 million in the first half of 2016.
Nexity's free cash flow for the first six months of 2017 was ?42 million,
compared with ?68 million for the first half of 2016.
Net cash used in financial investments was much lower than in the first half of
2016, when this item included the acquisition of a 55% stake in Edouard Denis
for ?55 million.
Net cash from financing activities (?59 million) primarily involved the proceeds
from the bond issue carried out in June 2017 for ?151 million (see below), net
of loan repayments and bond partial redemption during the period.
Financial structure
Nexity's consolidated equity (attributable to equity holders of the parent
company) was ?1,525 million at end-June 2017, compared to ?1,589 million at end-
December 2016, mainly after ?133 million in dividends paid and the inclusion of
net profit for the half-year period (?62 million attributable to parent company
shareholders).
----------------------------------- -------------- -------------- -------------
? millions 30 June 2017 31 Dec. 2016 Change in ?m
----------------------------------- -------------- -------------- -------------
Bond issues (incl. accrued 698 610 88
interest and issuance fees)
Loans and borrowings 359 375 (16)
Other financial borrowings and 0 8 (7)
other financial receivables
Net cash and cash equivalents (642) (676) 35
----------------------------------- -------------- -------------- -------------
Net debt 416 317 99
----------------------------------- -------------- -------------- -------------
Net financial debt amounted to ?416 million at 30 June 2017, compared to ?317
million at 31 December 2016 (up ?99 million). This increase in net debt over the
first half of the year was mainly due to the increase in operating working
capital (up ?20 million), the dividend payment (?133 million) and investments
(?15 million), partially offset by the cash flow generated by operations in the
first half of the year (?81 million).
At 30 June 2017, net debt equated to 27% of equity and 1.3x EBITDA over the
previous 12 months.
On 22 June 2017, Nexity successfully issued ?151 million in bonds into the
private placement market, comprising one tranche of ?30 million in bonds,
redeemable at maturity in November 2023 (6.5 years) and paying an annual coupon
rate of 2.05%, and a second tranche of ?121 million in bonds, redeemable at
maturity in June 2025 (8 years) and paying an annual coupon rate of 2.60%. At
the same time, Nexity redeemed ?65 million in bonds originally due to mature in
December 2018, issued in January 2013 and carrying an annual coupon rate of
3.75%. This new borrowing extends the maturity of the debt (4 years as against
3.2 years prior to the new issue) while also taking advantage of current
favourable interest rates.
At 30 June 2017, Nexity had authorisations from banks to borrow up to ?1,013
million, including available facilities of ?300 million on its corporate credit
lines (undrawn). The Group had drawn down ?359 million of its authorised credit
at 30 June 2017. Nexity was in compliance with all of the financial covenants
attached to its borrowings and lines of credit as of 30 June 2017.
Backlog at 30 June 2017
--------------------------------------- -------------- -------------- ---------
? millions, excluding VAT 30 June 2017 31 Dec. 2016 Change %
--------------------------------------- -------------- -------------- ---------
Residential real estate - New homes 3,488 3,227 +8.1%
Residential real estate - 255 237 +7.8%
Subdivisions
Residential real estate backlog 3,744 3,464 +8.1%
Commercial real estate backlog 482 544 -11.5%
--------------------------------------- -------------- -------------- ---------
Total Group backlog 4,226 4,008 +5.4%
--------------------------------------- -------------- -------------- ---------
The Group's backlog at end-June 2017 stood at ?4,226 million, up 5% relative to
year-end 2016 and equivalent to 19 months' revenue from Nexity's development
activities (revenue on a rolling 12-month basis).
Order book in the Residential division totalled ?3,744 million, up 8% compared
to 31 December 2016. This backlog amounts to 19 months of revenue (Residential
division revenue on a rolling 12-month basis).
The Commercial division's backlog dropped to ?482 million at 30 June 2017
(compared with ?544 million at year-end 2016), as the new orders received during
the half-year period did not offset the extent of completion of projects under
construction. This backlog amounts to 18 months of revenue (Commercial division
revenue on a rolling 12-month basis).
Implementation of IFRS 15 and IFRS 16
Detailed information regarding IFRS 15 Revenue from Contracts with Customers and
IFRS 16 Leases is provided in Note 2.1 to the consolidated interim financial
statements in Section 2 of the 2017 Interim Financial Report.
***
Financial calendar and practical information
9M 2017 business activity and revenue Wednesday, 25
October 2017 (after market close)
2017 annual results Tuesday, 20 February
2018 (after market close)
Q1 2018 business activity and revenue Wednesday, 25
April 2018 (after market close)
Shareholders' Meeting Thursday, 31 May
2018
A conference call on H1 2017 revenue and business activity will be held in
English at 6:30 p.m. CET on 25 July 2017, accessible using code 8040410 by
dialling the following numbers:
- From France +33 (0)1 76 77 25 06
- From other locations in Europe +44 (0)330 336 94 12
- From the USA +1 719 457 1036
The presentation accompanying this conference will be available on the Group's
website from 6:15 p.m. CET and may be viewed at the following address:
http://edge.media-server.com/m/p/dn9hd8wv
The conference call will be available on replay at http://www.nexity.fr/real-
estate from the following day.
The French version of the 2017 Interim Financial Report has been filed with the
Autorité des Marchés Financiers (AMF) and can be accessed via the Group's
website.
Disclaimer
AT NEXITY, WE AIM TO SERVE ALL OUR CLIENTS AS THEIR REAL ESTATE NEEDS EVOLVE
Nexity offers the widest range of advice and expertise, products, services and
solutions for 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
Nexity is included in 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 code: 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 2 of the Registration Document
(Document de référence) filed with the AMF under number D.17-0335 on 6 April
2017 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.
ANNEXES
QUARTERLY FIGURES
OPERATIONAL REPORTING (In accordance with IFRS but with joint ventures
proportionately consolidated)
Reservations: Residential real estate division
------------- ------------------------- ------------------------
2017 2016 2015
------------- ------------------------- ------------------------
Number of
units Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
--------------- ------------- ------------------------- ------------------------
New homes
(France) 4,288 3,506 5,201 3,624 4,121 2,947 4,237 2,368 2,949 2,187
- o/w 2016
external
growth 399 413 547 295
Subdivisions 680 479 1,027 420 654 417 925 400 556 321
International 106 37 141 95 170 73 133 103 42 14
--------------- ------------- ------------------------- ------------------------
Total (number 5,074 4,022 6,369 4,139 4,945 3,437 5,295 2,871 3,547 2,522
of units)
--------------- ------------- ------------------------- ------------------------
Value (?m
incl. VAT)
--------------- ------------- ------------------------- ------------------------
New homes
(France) 858 655 969 666 772 536 803 473 595 415
- o/w 2016
external
growth 82 75 90 48
Subdivisions 53 35 87 30 48 32 69 29 45 23
International 14 9 21 17 28 13 19 15 6 2
--------------- ------------- ------------------------- ------------------------
Total (?m 925 699 1,076 713 848 581 891 516 646 440
incl. VAT)
--------------- ------------- ------------------------- ------------------------
Revenue by division
------------- --------------------------- --------------------------
2017 2016 2015
------------- --------------------------- --------------------------
? millions Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
------------- ------------- --------------------------- --------------------------
Residential
real estate 625.8 447.8 809.9 475.4 549.3 432.8 809.3 460.3 531.5 360.5
Commercial
real estate 56.7 85.8 117.5 60.6 61.3 67.6 74.2 102.8 116.5 85.7
Services 124.3 121.3 125.6 124.8 122.8 120.9 131.3 129.8 121.2 121.5
Other
activities 1.7 1.1 0.9 0.6 2.1 0.7 1.3 1.2 9.0 1.0
------------- ------------- --------------------------- --------------------------
GROUP 808.5 656.0 1,053.8 661.4 735.6 621.9 1,016.0 694.1 778.2 568.7
------------- ------------- --------------------------- --------------------------
CONSOLIDATED INCOME STATEMENT - 30 JUNE 2017
OPERATIONAL REPORTING (In accordance with IFRS but with joint ventures
proportionately consolidated)
-------------------------------------------------------- ----------------------
? thousands 30/06/2017 30/06/2016
-------------------------------------------------------- ----------------------
Revenue 1,464,458 1,357,497
Purchases (932,343) (878,750)
Personnel costs (261,071) (238,938)
Other operating expenses (118,082) (105,183)
Taxes (other than income tax) (17,904) (16,930)
Depreciation, amortisation and impairment of fixed
assets (11,202) (11,008)
-------------------------------------------------------- ----------------------
Current operating profit 123,856 106,688
-------------------------------------------------------- ----------------------
-------------------------------------------------------- ----------------------
Operating profit 123,856 106,688
-------------------------------------------------------- ----------------------
Financial expense (17,703) (17,994)
Financial income 2,777 3,189
-------------------------------------------------------- ----------------------
Net financial income/(expense) (14,926) (14,805)
-------------------------------------------------------- ----------------------
-------------------------------------------------------- ----------------------
Pre-tax recurring profit 108,930 91,883
-------------------------------------------------------- ----------------------
Income taxes (39,733) (34,918)
Share of profit/(loss) from equity-accounted (5,140) (3,363)
investments
-------------------------------------------------------- ----------------------
Net profit 64,057 53,602
-------------------------------------------------------- ----------------------
Net profit attributable to equity holders of the 62,007 52,499
parent company
-------------------------------------------------------- ----------------------
Net profit attributable to non-controlling interests 2,050 1,103
-------------------------------------------------------- ----------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - 30 JUNE 2017
OPERATIONAL REPORTING (In accordance with IFRS but with joint ventures
proportionately consolidated)
-------------------------------------------------------- ----------------------
ASSETS 30/06/2017 31/12/2016
? thousands
-------------------------------------------------------- ----------------------
Non-current assets
Goodwill 1,217,341 1,213,627
Other intangible assets 69,385 63,904
Property, plant and equipment 49,783 49,816
Equity-accounted investments 22,149 28,063
Other financial assets 37,250 40,981
Deferred tax assets 11,947 8,092
-------------------------------------------------------- ----------------------
Total non-current assets 1,407,855 1,404,483
-------------------------------------------------------- ----------------------
Current assets
Inventories and work in progress 1,609,603 1,618,141
Trade and other receivables 509,729 438,313
Tax receivable 17,485 5,868
Other current assets ((1)) 1,178,537 1,165,093
Other financial receivables 33,106 31,045
Cash and cash equivalents 660,270 697,616
-------------------------------------------------------- ----------------------
Total current assets 4,008,730 3,956,076
-------------------------------------------------------- ----------------------
Total assets 5,416,585 5,360,559
-------------------------------------------------------- ----------------------
((1) )o/w client working capital accounts (Services) 689,520 673,152
-------------------------------------------------------- ----------------------
LIABILITIES AND EQUITY 30/06/2017 31/12/2016
? thousands
-------------------------------------------------------- ----------------------
Equity
Share capital 276,525 274,045
Additional paid-in capital 640,799 778,546
Treasury shares
Reserves and retained earnings 545,423 397,568
Net profit for the period 62,007 139,113
-------------------------------------------------------- ----------------------
Equity attributable to equity holders of the parent 1,524,754 1,589,272
company
-------------------------------------------------------- ----------------------
Non-controlling interests 6,010 4,866
-------------------------------------------------------- ----------------------
Total equity 1,530,764 1,594,138
-------------------------------------------------------- ----------------------
Non-current liabilities
Long-term borrowings and financial debt 816,392 728,419
Employee benefits 30,544 29,553
Deferred tax liabilities 69,933 56,010
-------------------------------------------------------- ----------------------
Total non-current liabilities 916,869 813,982
-------------------------------------------------------- ----------------------
Current liabilities
Short-term borrowings, financial debt and operating
liabilities ((1)) 292,889 316,831
Current provisions 94,303 99,987
Trade and other payables 789,972 887,074
Current tax liabilities 5,493 9,065
Other current liabilities ((2)) 1,786,295 1,639,482
-------------------------------------------------------- ----------------------
Total current liabilities 2,968,952 2,952,439
-------------------------------------------------------- ----------------------
Total liabilities and equity 5,416,585 5,360,559
-------------------------------------------------------- ----------------------
((1) )o/w bank overdraft facilities 18,489 21,207
((2)) o/w client working capital accounts (Services) 689,520 673,146
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.
H1 2017 H1 2016
------------- ---------------------------------- ---------------------------------- -------
Current Current %
? millions operating Adjustments EBITDA operating Adjustments EBITDA change
profit/(loss) profit/(loss) in
EBITDA
------------- ---------------------------------- ---------------------------------- -------
Residential +16.7%
real estate 86.4 5.2 91.6 79.4 (0.9) 78.4
% of
revenue 8.0% 8.5% 8.1% 8.0%
Commercial +34.4%
real estate 30.4 0.4 30.8 21.9 1.1 22.9
% of
revenue 21.4% 21.6% 17.0% 17.8%
Services 18.7 5.1 23.9 15.4 3.5 18.8 +26.7%
% of
revenue 7.6% 9.7% 6.3% 7.7%
Other N/A
activities (11.7) 4.4 (7.4) (9.9) 9.0 (0.9)
------------- ---------------------------------- ---------------------------------- -------
GROUP 123.9 15.0 138.9 106.7 12.6 119.3 +16.4%
% of
revenue 8.5% 9.5% 7.9% 8.8%
------------- ---------------------------------- ---------------------------------- -------
HALF-YEAR FIGURES BY DIVISION
OPERATIONAL REPORTING (In accordance with IFRS but with joint ventures
proportionately consolidated)
Current operating profit
-------- --------------------- ---------------------
2017 2016 2015
-------- --------------------- ---------------------
? millions H1 FY H2 H1 FY H2 H1
------------------------- -------- --------------------- ---------------------
Residential real estate 86.4 203.1 123.7 79.4 186.3 117.1 69.2
Commercial real estate 30.4 57.1 35.3 21.9 39.0 16.8 22.2
Services 18.7 44.8 29.4 15.4 35.4 23.3 12.1
Other activities (11.7) (38.5) (28.6) (9.9) (40.6) (29.5) (11.1)
------------------------- -------- --------------------- ---------------------
GROUP 123.9 266.5 159.8 106.7 220.1 127.8 92.3
------------------------- -------- --------------------- ---------------------
EBITDA
------- --------------------- --------------------
2017 2016 2015
------- --------------------- --------------------
? millions H1 FY H2 H1 FY H2 H1
------------------------- ------- --------------------- --------------------
Residential real estate 91.6 210.2 131.7 78.4 189.3 121.2 68.1
Commercial real estate 30.8 56.8 33.9 22.9 38.8 20.3 18.5
Services 23.9 55.4 36.6 18.8 46.3 32.6 13.7
Other activities (7.4) (17.7) (16.8) (0.9) (14.6) (13.4) (1.2)
------------------------- ------- --------------------- --------------------
GROUP 138.9 304.7 185.4 119.3 259.8 160.6 99.2
------------------------- ------- --------------------- --------------------
CONSOLIDATED INCOME STATEMENT - 30 JUNE 2017
(IFRS)
------------------------------------------------ ------------------------------
30/06/2017 30/06/2016
? thousands 6-month period 6-month period
------------------------------------------------ ------------------------------
Revenue 1,401,938 1,315,526
Purchases (879,886) (846,466)
Personnel costs (261,066) (238,928)
Other operating expenses (117,701) (104,238)
Taxes (other than income tax) (17,840) (16,517)
Depreciation, amortisation and impairment of
fixed assets (11,202) (11,008)
------------------------------------------------ ------------------------------
Current operating profit 114,243 98,369
------------------------------------------------ ------------------------------
------------------------------------------------ ------------------------------
Operating profit 114,243 98,369
------------------------------------------------ ------------------------------
Share of profit from equity-accounted
investments 5,727 4,760
------------------------------------------------ ------------------------------
Operating profit after share of profit from 119,970 103,129
equity-accounted investments
------------------------------------------------ ------------------------------
Financial expense (17,483) (17,763)
Financial income 2,793 3,314
------------------------------------------------ ------------------------------
Net financial income/(expense) (14,690) (14,449)
------------------------------------------------ ------------------------------
------------------------------------------------ ------------------------------
Pre-tax recurring profit 105,280 88,680
------------------------------------------------ ------------------------------
Income taxes (36,083) (31,715)
Share of profit/(loss) from other equity- (5,140) (3,363)
accounted investments
------------------------------------------------ ------------------------------
Net profit 64,057 53,602
------------------------------------------------ ------------------------------
Net profit attributable to equity holders of 62,007 52,499
the parent company
------------------------------------------------ ------------------------------
Net profit attributable to non-controlling 2,050 1,103
interests
------------------------------------------------ ------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - 30 JUNE 2017
(IFRS)
-------------------------------------------------------- ----------------------
ASSETS 30/06/2017 31/12/2016
? thousands
-------------------------------------------------------- ----------------------
Non-current assets
Goodwill 1,217,341 1,213,627
Other intangible assets 69,385 63,904
Property, plant and equipment 49,783 49,816
Equity-accounted investments 38,233 46,597
Other financial assets 38,537 42,256
Deferred tax assets 10,869 7,330
-------------------------------------------------------- ----------------------
Total non-current assets 1,424,148 1,423,530
-------------------------------------------------------- ----------------------
Current assets
Inventories and work in progress 1,512,002 1,523,197
Trade and other receivables 475,944 435,156
Tax receivable 19,090 5,064
Other current assets 1,151,103 1,140,650
Other financial receivables 101,317 89,199
Cash and cash equivalents 584,773 631,823
-------------------------------------------------------- ----------------------
Total current assets 3,844,229 3,825,089
-----------------------------------
Unternehmensinformation / Kurzprofil:
Datum: 25.07.2017 - 17:45 Uhr
Sprache: Deutsch
News-ID 553833
Anzahl Zeichen: 65583
contact information:
Town:
Paris-la-Défense
Kategorie:
Business News
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