• Nexity: Press Release - 2021 annual results

    Source: Nasdaq GlobeNewswire / 23 Feb 2022 11:45:00   America/New_York

    2021 Full-Year Results                                                                                                                                                                                                                                                                                                     Paris, 23 February 2022, 17h45 CEST

    2021 performance at all-time highs
    Further growth expected in 2022
    Dividend per share up 25% to €2.50

    Delivering profitable growth through the resilient model of a fully integrated real estate operator

    • Around 21,000 reservations for the third year in a row despite the health crisis
    • Revenue of €4.6bn (+5% compared to 2020) with a strong rebound in Services (+11%)
    • Record high current operating profit (€371m) implying an 8% margin
    • €20.7bn pipeline providing high visibility (equivalent to 5 years of activity)

    Preparing a new growth cycle for Nexity

    • Refocused portfolio; record high group net profit of €325m, including a €137m non-recurring contribution
    • Strong balance-sheet: decrease in net debt (€598m, down 35% compared to 2019) and leverage ratio (1.5x EBITDA)
    • ESG ambition confirmed with tangible results delivered: reduction in carbon emissions in 2021 in line with 2030 trajectory

    Outlook: further growth expected in 2022

    • Targeted market share above 14% in a new home market expected to grow slightly (c.150,000 units)
    • Growth investments focused on France
    • Maintaining operating margin at around 8%, with a current operating profit of at least €380m

    Note: All revenue, current operating profit and data change “on a like-for-like basis” refer to the new scope of Nexity's business portfolio, which corresponds to the scope without the businesses sold in 2021 (Century 21 and Ægide-Domitys) and without the capital gains and goodwill impairment losses (discontinuation of the development in Germany). The divested businesses are consolidated until 31 March for Century 21 and until 30 June for Ægide-Domitys. In 2019, they include the disposal of Guy Hoquet l'Immobilier (see definition on page 14)

    2021 Key figures

    BUSINESS ACTIVITY FINANCIAL RESULTS
     2021Change1 New scope (€m)202120203201921 vs 2021 vs 19
    New home reservations in France    Revenue4,6254,4214,026+5%+15%
    Volume20,838units+1% Current operating profit371281340+32%+9%
    Value4,315€m-3% Operating margin (% of revenue)8.0%6.3%8.5%  
    Commercial Real Estate    REPORTED DATA (€m)202120203201921 vs 2021 vs 19
    Order intake421€m  Net profit – Group share325113161x 2,9x 2,0
    Outlook development    Net debt2 598655918-9%-35%
    Backlog6,538€mstable x EBITDA after leases1.5x1.9x2.3x  

    1 Change on a like-for-like basis, calculated on the basis of the New Scope, i.e. without the contribution of Ægide-Domitys.
    2 Net debt before lease liabilities and application of IFRS 5
    3 2020 figures restated following the IFRS IC decision of March 2021 on the accounting treatment of software costs used in SaaS mode (see note on page 18)

    Alain DININ, Chairman of the board, commented:

    " Nexity confirms once again, the robustness and the relevance of its integrated real estate operator model, with resilient results in 2021 that are well above those of 2020, of course, but especially those of 2019. The complexity of a common living-together will raise in the very short term the challenge of housing and city building. The economic and political world has started to perceive the major issues at stake, and it seems clear to us that Nexity's size, business lines and knowledge of its clients’ needs will provide tremendous development opportunities.

    The Board of Directors, confident about the outlook and strategy executed by the management team, will propose to the next Shareholders' Meeting an increased dividend of €2.50 per share.”

    Véronique BÉDAGUE, Chief Executive Officer, commented:

    "The year 2021 has particularly highlighted the relevance of Nexity's unique integrated real estate operator model. The health crisis has accelerated urban change and created new uses and new expectations from people, companies and local bodies in terms of living and working spaces (importance of primary home, flexible and remote working, energy efficiency, new consumption, reversibility, new services). Nexity's broad platform of real estate expertise, from the development of new home programmes to the offering of property management, serviced properties and distribution services, responds to these needs in a way that is unique in the market, as demonstrated by the solid performance recorded in 2021 both at the Group level, which exceeded its objectives, and in each of its businesses. I would like to extend my warmest thanks to all of the Group's 8,000 employees who have worked hard to achieve these remarkable results.

    I am particularly proud that this growth in economic results was delivered together with a sharp reduction in the Group's carbon emissions, in line with its 2030 trajectory. They have decreased by 4% per sq.m delivered for residential development and by 13% for commercial real estate compared to 2019. Nexity also launched this year new pioneering offers in France for low-carbon cities at affordable price, both in commercial and residential real estate development, with the "Essential" building1.

    Nexity starts 2022 with confidence and ambition, despite a global context that is still volatile at the beginning of the year and the extended required timing to obtain building permits. With the depth of its range of expertise, the visibility of its order book, and the ongoing rebuilding of its supply-for-sale, Nexity has strong assets to continue to be selective and maintain its margin level. We are confident in our ability to outperform the market in 2022 and to achieve another year of revenue and earnings growth.

    With Nexity's management team, we will present the roadmap for Nexity's new growth cycle during the upcoming capital market day scheduled on 28 April.”

    *        *        *

    On Wednesday 23 February 2022, Nexity's Board of Directors, meeting under the chairmanship of Alain Dinin, examined and approved the Group's consolidated financial statements for the year ended 31 December 2021, which are attached to this press release. The audit procedures have been carried out. The certification report will be issued after verification of the management report.

    I. A RECORD PERFORMANCE, RELEVANCE OF THE INTEGRATED REAL ESTATE OPERATOR MODEL

    RESIDENTIAL REAL ESTATE

    A resilient business activity: In a market up by 8% in 2021 compared with 2020 to c.145,000 units2 but still down by more than 10% compared with 2019 (167,000 units), Nexity is demonstrating the strength of its business activity in 2021 and confirming its leading position in new homes in France with almost 21,000 new home reservations (20,838 units) for the third consecutive year.

    Supply for sale is growing again: The slowdown in building permits authorisations continued to exert a strong constraint on supply for sale, which recovered slightly from the third quarter onwards thanks to the slow recovery in obtained building permits. After falling by almost 20% in 2020, Nexity's supply for sale started to grow again in 2021 (+6%). This trend is expected to continue in the coming months, given the number of permits obtained by Nexity and the volume of permits currently being under review.

    The return of private individuals and social landlords: Demand for housing in France remained strong in 2021, both for individuals, who benefited from financing conditions that remained very attractive, and for institutional investors, who were still attracted by the defensive and resilient nature of this asset class. New home reservations in France for the year were up on a like-for-like basis compared with 2020 by 1% in volume but fell 3% in value due to contrasting trends depending on the customer and geographical mix.

    Retail sales represented 55% of the number of reservations made in 2021, close to the 2019 level. They increased by 11% in volume and 14% in value driven by medium-sized cities. The increase in value reflects a differentiated rise in the average price per sqm on the retail sales (+2% in Paris region and +3% outside-Paris regions).

    Bulk sales are down by 13% in volume due to the exceptional base effect in 2020 of sales to CDC Habitat (c.5,000 reservations in 2020, compared to c.1,500 reservations in 2021) but are up by 20% compared to 2019 The share of social landlords stood at 29%, slightly above the level of the SRU law (minimum of 25%) due to the delayed bulk sales planned in 2020 and postponed to 2021 in connection with the health crisis.

    A very dynamic fourth quarter: The fourth quarter was particularly dynamic, with reservations up 5% in volume and down 6% in value on a like-for-like basis, with the share of bulk sales concentrated in the fourth quarter (60% of Q4 reservations).

    Strong growth in results, profitability intact: Consolidated revenue for the 2021 financial year increased by 19% compared to the end of 2020 to €3,279 million, and operating profit by 34% to €271 million. The current operating margin increased by 100 basis points to reach 8.3%, thus returning to a level close to that observed in 2019 and demonstrating the business line's ability to maintain its profitability. Working capital requirement was €1 billion and represented 18% of the division's backlog, in line with historical levels.   

    New scope (€m)2021

         		20202019 2021/2020
    change    		 2021/2019
    change
    Revenue3,2792,7592,842+ 19%+ 15%
    Current operating profit271203252+ 34%+ 8%
    Margin (as a % of revenue)8.3%7.3%8.9%+100 bps-60 bps
    Working capital requirement (WCR)1,029985876  
    As a % of backlog18%17%19%  

    Outlook: Nexity expects the market to grow slightly in 2022 (c.150,000 units), in a context of supply for sale that is still insufficient but recovering, and with demand that is expected to remain strong. Nexity is aiming for a market share above 14%, with a balance mix between individuals and institutional investors, benefiting from the acceleration of its development in the renovation of city centres and in the conversion of offices into housing. Despite rising construction costs, the Group remains confident in its ability to maintain its operating margin level.

    COMMERCIAL REAL ESTATE DEVELOPMENT

    Resilient business activity in a market at a low level: As France's leading commercial real estate developer, Nexity has €421 million order intake in 2021, in line with its targets, while the overall amount of commercial real estate investment in the Paris region remained 35% lower than the 2017-2020 annual average3. This order intake includes €366 million in the Paris region (including Reiwa, Nexity's future headquarters in Saint-Ouen, and Carré Invalides, the restructuring of the former headquarters of the Île-de-France Regional Council in the 7th arrondissement of Paris), and €50 million order intake in the major regional cities where Nexity continues to strengthen its presence.

    Emblematic deliveries: Thirteen projects were delivered during the year, representing a floor area of 140,000 sq.m, including the renovation of the iconic "Maison Bayard" building, the former headquarters of the RTL group.

    Financial results: Revenue amounted to €492 million, down 45% compared to the end of 2020, which benefited from the €370 million contribution to revenue from the sale of the La Garenne-Colombes eco-campus (LGC) in Q4 2020 for approximately €1 billion. Restated from this effect, decline in revenue was 7% compared to 2020. Operating margin remained high at 11.9%, still above normative levels. Working capital requirement, which was occasionally strongly negative at end-2020 due to the timing of cash receipts on major 2020 orders, was normalizing as expected and reached €24 million at the end of 2021.

    New scope (€m)202120202019 2021/2020
    change    		 2021/2019
    change
    Revenue492895376- 45%+ 31%
    Current operating profit597243- 19%+ 37%
    Margin (as a % of revenue)11.9%8.1%11.4%+380 bps+50 bps
    Working capital requirement (WCR)24(267)87  

    Outlook: Aware of the profound changes affecting the office market, accelerated by the health crisis and its impact on working methods, Nexity has developed a pioneering, comprehensive and tailored office-to-use offering (coworking spaces, support in organising workspaces, digital brokerage of workspaces), enabling the Group to position itself as a leading player in supporting its customers in the transformation of real estate and working methods. Given the maturity of the project portfolio and the wait-and-see attitude of users in the market, orders for commercial real estate should reach a low point in 2022. The backlog consumption should make it possible to achieve revenues of at least €400 million by 2022.

    SERVICES 

    Ægide-Domitys and Century 21 disposals:  The year 2021 was marked for the Services division by the sale to AG2R-La Mondiale on 22 June 2021 of the majority of the capital of Ægide-Domitys, the French leader in serviced senior residences with 126 residences under management at the end of December. The transaction enabled Nexity to deconsolidate the management of senior serviced residences, while strengthening its development activities, a high-potential business line, thanks to a partnership with AG2R-La Mondiale. The results of Ægide-Domitys are consolidated until 30 June 2021. The sale of the Century 21 franchise network in May (consolidation of the business until 31 March 2021) completed the Group's strategic review launched at the end of 2020.

    Division is now refocused on three business lines that are highly complementary to the development activities: (i) property management for individuals (condominium management, rental management, leasing, transactions) or companies (property management); (ii) operation of serviced properties (student residences under the Studéa brand) and coworking spaces (under the Morning brand); and (iii) distribution of new homes for individual investors (under the brands iSelection and PERL).

    Strong rebound in results: Services activities revenue (new scope4) amounted to €853 million, up 11% compared to 2020. Services activities' current operating profit has almost doubled compared to end-2020, reaching €74 million at end-2021. The current operating margin increased by 340 basis points to 8.7% in 2021. In 2022, Services activities should continue their strong growth trajectory, both in revenue and profitability.

    New scope (€m)202120202019 2021/2020
    Change    		 2021/2019
    Change
    Revenue853767807+ 11%+ 6%
    o/w Services Property management379370392+ 3%- 3%
    o/w Serviced properties157133131+ 18%+ 20%
    o/w Distribution316265284+ 19%+ 11%
    Current operating profit744181+ 81%- 8%
    Margin (in % of revenue)8,7%5,3%10,0%+340 bps-130 bps
    Working capital requirement (WCR)754969  

    Revenue from property management activities was up 3% in 2021. Revenues from property management for individuals benefited from the good level of transaction activities, driven by historical market levels, and the development of new services (energy renovation). Nexity Property Management has renewed in 2021 its contract with one of its major clients, La Française, for a five-year period. Accessite, a leader in retail property valuation, has recorded a revenue increase of more than 15% and has obtained a new management mandate for 4 shopping centres owned by Lighthouse.

    Revenue from serviced properties grew strongly by 18% in 2021, driven by Morning, up 46% compared with 2020 thanks to an increase in floor space following 2021 new openings (notably in the emblematic Hôtel de la Marine in Paris) and an occupancy rate returning to its normal levels (90% at end-December 2021). Nexity Studéa, the leading operator of student residences, revenue increased by 8% compared with 2020, with a still very high average occupancy rate (93%).

    Revenue from distribution activities were at a record level (+19% compared with 2020), supported by the growing appetite of individual investors for real estate investment.

    II. A PIONEERING CSR COMMITMENT, A RECOGNISED PERFORMANCE

    Nexity's commitment to a low-carbon, inclusive and resilient city is reflected in concrete commitments and recognised achievements, which have been praised by the extra-financial rating agency MSCI, which upgraded the Group's rating from A to AA in 2021, placing it among the top 13% of companies in the “Real Estate” sector.

    On the environmental front, Nexity has consolidated its position as the leader in low-carbon real estate for the past three years, with a 1st place in the BBCA ranking of French low-carbon real estate developers. The Group's carbon emissions fell by 4% for residential real estate and by 13% for commercial real estate in 2021, in line with the commitment to a trajectory of -22% of CO2/sq.m delivered in 2030 (compared to 2019), the roadmap of which was validated in March by the independent body Science Based Target Initiative (SBTI). These emissions are calculated for the entire value chain (scopes 1, 2 and 3), i.e. the direct and indirect emissions produced by the buildings (during their entire life cycle) and by the Group's activities.

    Nexity is also pursuing its commitment to diversity and inclusion. In 2021, Nexity confirmed its place for the third consecutive year in the Bloomberg Gender-Equality Index, ranking among 418 companies worldwide, including a dozen in France, committed to gender equality and the promotion of gender equity. At 31 December, women represented 38% of Nexity's managers and 54% of the members of its executive committee.

    In 2021, Nexity was ranked 7th in the annual customer relations ranking drawn up by Les Echos - The Human Consulting Group (HCG), up 20 places in one year. This recognition reflects the central place of the customer in the Group's strategy and rewards the many actions implemented to improve customer satisfaction.

    III. OUTSTANDING 2021 FINANCIAL RESULTS

    Operational reporting


    in € million    		 20212020
    restated*    		2019 2021/2020
    change    		2021/2019
    change
    Revenue new scope 4,6254,4214,026 +5%+15%
    Revenue from disposed activities 211434473 -51%-55%
    Revenue 4,8374,8554,499 -0%+8%
            
    Current operating profit new scope 371281340 +32%+9%
    % of revenue 8.0%6.3%8.5%   
    Non-recurring operating profit 157(2)13   
    Operating profit 528279353 +89%+49%
    Net financial income/(expense)  (87)(86)(80) -2%-9%
    Income tax (102)(72)(104)   
    Share of profit/(loss) from equity-accounted investments (2)(2)0   
    Net profit 336119169 x 2,8x 2,0
    Non-controlling interests (12)(6)(9)   
    Net profit attributable to equity holders of the parent company 325113161 x 2,9x 2,0
    Of which net income from non-current items and disposed activities 137(21)(19)   
    Net profit attributable to equity holders of the parent company, new scope 188134179 +40%+5%
    (in euros)       
    Net earnings per share  5.85 €2.05 €2.90 €   
    Net earnings per share, new scope  3.38 €2.43 €3.23 €   

    * 2020 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode (see note on page 18)

    Revenue

    Reported revenue was €4,837 million, consisting of:

    • Revenue from new scope of €4,625 million, up 5% compared to 2020 and up 15% compared to 2019; and
    • Revenue from disposed activities in H1 2021 (Ægide-Domitys and Century 21) for €211 million.

    in € million    		 202120202019 2021 vs 2020
    Change    		2021 vs 2019
    Change
    Development 3,7713,6543,218 + 3%+ 17%
    Residential Real Estate Development 3,2792,7592,842 + 19%+ 15%
    Commercial Real Estate Development 492895376 - 45%+ 31%
    Services 853767807 + 11%+ 6%
    Other Activities 101 nsns
    Revenue new scope 4,6254,4214,026 + 5%+ 15%
    Revenue from disposed activities (1) 211434473 - 51%- 55%
    Revenue 4,8374,8554,499 - 0,4%+ 8%

    (1) The new scope of consolidation corresponds to the scope of business excluding the contribution of disposed activities (Century 21 and Ægide-Domitys) and the capital gains on disposal. The activities sold are consolidated until 31 March for Century 21 and until 30 June for Ægide-Domitys. In 2019, they include the disposal of Guy Hoquet l'Immobilier.
    Note: Revenue generated by the development businesses from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of all inventoriable costs.

    Under IFRS, revenue was €4,468 million, compared to €4,512 million at the end of 2020. This revenue excludes revenue from joint ventures in application of IFRS 11, which requires the equity accounting of proportionally integrated joint ventures in operational reporting.

    Operating profit

    Reported current operating profit amounted to €528 million, and is broken down into :

    • €371 million in current operating profit on the new scope representing a 8.0% operating margin ; and
    • €157 million in non-recurring operating profit.
      2021 2020 restated* 2019
    In € million Operating
    profit    		Margin
    rate    		 Operating
    profit    		Margin
    rate    		 Operating
    profit    		Margin
    rate
    Development 3308.7% 2757.5% 2959.1%
    Residential Real Estate Development 2718.3% 2037.3% 2528.9%
    Commercial Real Estate Development 5911.9% 728.1% 4311.4%
    Services 748.7% 415.3% 8110.0%
    Other Activities (33)ns (35)ns (35)ns
    Current operating profit new scope 3718.0% 2816.3% 3408.5%
    Non-recurring operating profit 157  (2)  139 
    Operating profit 52810.9% 2795.7% 3537.9%
    * 2020 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode (see note on page 18)

    The current operating profit for the new scope increased by 32% compared to 2020 to reach €371 million. After a year 2020 impacted by the health crisis, the current operating margin increased in all divisions and reached 8.0%, thus returning to a level close to that of 2019.

    Non-recurring operating profit amounted to €157 million in 2021. It includes the results of the Century 21 and Ægide-Domitys businesses until their disposal (€41 million), the related capital gains (€177 million) and the impairment loss on the goodwill of the German activities (-€61 million).

    Other income statement items

    Financial expense was -€87 million in 2021, stable compared to 2020. The cost of net financial debt (excluding IFRS 16) amounted to -€46 million (compared to -€51 million in 2020), reflecting the Group's deleveraging during the year. The average cost of financing (drawn down) remained low at 2.1%.

    Tax expense (including the Cotisation sur la Valeur Ajoutée des Entreprises, CVAE) increased to -€102 million due to the increase in taxable income. The current effective tax rate (excluding CVAE and capital gains on disposals) was 31% in 2021 (compared to 30% in 2020).

    Net profit Group's share for the year 2021 was €325 million (compared to €113 million in 2020). Restated from non-recurring items (disposals and loss on goodwill impairment) it amounted to €188 million, up 40% compared to 2020 and up 5% compared to 2019

    Cash flows

    Cash flow from operating activities after lease payments but before interest and tax expenses was €358 million at the end of December 2021 (compared to €319 million at the end of 2020).

    Operating working capital (excluding tax) rose by €405 million and mainly considered the consumption of advances paid on major orders signed at the end of 2020 in Commercial Real Estate (reversal of the improvement recorded in 2020: -€394 million) and the landbank increase (+€100 million).

    Nexity’s free cash-flow was a net outflow of €219 million at the end of December 2021 (compared with a positive inflow of €559 million in 2020). Given the reversal of the change in WCR between 2021 and 2020, the average level over 2 years is more representative of annual cash generation (€170 million per year).

    In € million 20212020 restated*
    Cash flow from operating activities before interest and tax expenses 541525
    Repayment of lease liabilities  (183)(207)
    Cash flow from operating activities after lease payments but before interest and tax expenses 358319
    Change in operating working capital (405)394
    Interest and tax paid (118)(87)
    Net cash from/(used in) operating activities (165)625
    Net cash from/(used in) operating investments (53)(67)
    Free cash-flow (219)559
    Net cash from/(used in) financial investments 191(48)
    IFRS 5 reclassification -(62)
    Dividends paid by Nexity SA (111)(110)
    Net cash from/(used in) financing activities, excluding dividends (51)(91)
    Change in cash and cash equivalents (189)248

    * 2020 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode (see note on page 18)

    Net cash from/(used in) financial investments totalled €191 million at end-2021, which mainly included the sale of 100% of Century 21 and 45% of Ægide for €208 million.

    Net cash flow from/(used in) financing activities totalled €51 million (compared to €91 million at end-2020), reflecting the impact of net repayment of financing during the year as well as a €20 million ESG share buyback programme.

    Working Capital Requirement

    In € millions 31 December 202131 December 2020

         		31 December 2019
    Development 1,053718963
    Residential Real Estate Development  1,029985876
    Commercial Real Estate Development  24(267)87
    Services 754969
    Other Activities (7)(63)17
    Total WCR excluding tax 1,1217051,049
    Corporate income tax (2)(22)(30)
    Working capital requirement (WCR) 1,1196821,019

    Working capital requirement (WCR) reached €1,119 million at end December 2021, i.e €437 million increase compared to 31 December 2020 already recognized in H1 accounts (normalisation of the working capital requirement of the Commercial real estate division, which was exceptionally negative at end-2020 given the advances paid by investors when they placed major orders in late 2020). The level of WCR has been stable overall (+€38 million) since 30 June. Landbank commitments represented around €280 million at 31 December 2021, up by around €100 million over the year. This increase reflects the Group's positions on unauthorised land with a high identified potential.   

    Balance sheet and financial structure

    Nexity’s consolidated equity (attributable to equity holders of the parent company) was €1,929 million at end-2021 (compared to €1,725 million at end-2020).

    Net debt excluding lease liabilities remained very low (€598 million at end-2021) representing a leverage ratio of 1.5x EBITDA after lease payment. The Group has a solid financial situation as of 31 December 2021, with a total cash position of €1,163 million, to which are added €600 million of confirmed and undrawn credit lines, giving it a strong capacity for future investment.


    In € million    		 31 December 202131 December 2020Change
    Bond issues and others 9941,333(339)
    Bank debt and commercial papers 768581194
    Net cash and cash equivalents (1,163)(1,364)194
    Net financial debt before lease liabilities 59855048
         
    Elimination of IFRS 5 debt reclassification -105(105)
    Net financial debt before lease liabilities and IFRS 5 598655(57)

    Nexity's financial structure was strengthened during the first half of the year with the extension to 2028 of €240 million of debt through the issuance on 19 April of an OCEANE (bonds convertible into new shares and/or exchangeable for existing shares) maturing in April 2028 at a low coupon (0.875% per annum), and the concomitant buyback of the OCEANE 2023 issued for €270 million. At 31 December 2021, the average debt maturity was 3.1 years (compared with 2.7 years at end-2020).

    The reduction in debt resulting from the sale of Ægide-Domitys and Century 21 has enabled the Group to reduce its outstanding bonds and other debt from €1,333 million to €994 million, with the repayment at maturity in May 2021 of a €146 million Euro PP and the cancellation of the commitment to buy out the minority shareholders in Ægide (€108 million).
    At 31 December 2021, the gross debt structure is balanced between long-term (56% of gross debt) and short and medium-term debt.

    Lease liabilities rose by €160 million in 2021, to reach €625 million, reflecting the growth in the managed student residences and coworking office spaces. Net debt including lease liabilities was €1,224 million at 31 December 2021, compared to €1,015 million at 31 December 2020

    At 31 December 2021, Nexity was in compliance with all of its contractual commitments with respect to its bond debt and corporate credit lines.

    Dividend for the year 2021

    Nexity's Board of Directors will propose to the Shareholders' Meeting to be held on 18 May 2022 the distribution of a dividend of €2.50 per share, paid in cash, for the 2021 fiscal year, up 25% compared to 2020. This dividend reflects the confidence of Nexity's Board of Directors in the Group's prospects and the strength of its financial position. If this distribution proposal is approved, the dividend will be detached from the share on 23 May 2022 and will be payable on 25 May 2022.

    IV. FURTHER GROWTH IN 2022

    Pipeline

    Development activities pipeline amounted €20.7 billion at the end of 2021, representing more than 5 years of activity. This figure includes (i) the backlog, which remains at its highest historical levels at €6.5 billion, and (ii) the business potential for €14.2 billion, which illustrates the Group's ability to prepare for future growth.

    2022 Guidance  

    • Targeted market share above 14% in a new home market expected to grow slightly (c.150,000 units)
    • Maintaining operating margin at around 8%, with a current operating profit of at least €380m

            *                        *                        *

    A conference call will be held today in French with a simultaneous translation into English at 6.30 p.m. (Paris Time), available on the website https://nexity.group/en/ in the Finance section and with the following numbers:

    • Calling from France         +33 (0)1 70 37 71 66
    • Calling from elsewhere in Europe        +44 (0)33 0551 0200
    • Calling from the United States        +1 212 999 6659
     

    The presentation accompanying this conference will be available on the Group’s website from 6:15 p.m. (Paris Time) and may be viewed at the following address: https://channel.royalcast.com/landingpage/nexityfr/20220223_1/

    The conference call will be available on replay at https://nexity.group/en/finance from the following day.

     

    Disclaimer: The information, assumptions and estimates that the Company could reasonably use to determine its targets are subject to change or modification, notably due to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks described in Section 2 of the Universal Registration Document filed with the AMF under number D.21-0283 on 9 April 2021, 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

    Contacts:
    Domitille Vielle – Head of Investor relations / +33 (0)6 03 86 05 02 – investorrelations@nexity.fr
    Géraldine Bop – Deputy Head of Investor relations / +33 (0)6 23 15 40 56 – investorrelations@nexity.fr

                                    *                *                *                *

    GLOSSARY

    Time-to-market: Available market supply compared to reservations for the last 12 months, expressed in months, for new home reservations segment in France

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

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

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

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

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

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

    Gearing: net debt divided by consolidated equity

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

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

    Leverage ratio: net debt before lease liabilities (IFRS 16) divided by EBITDA after leases on the last 12 months

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

    New scope: Scope of consolidation excluding the contribution of disposed activities (Century 21 and Ægide-Domitys) and capital gains. Disposed activities have been consolidated until March 31 for Century 21 and until June 30 for Ægide-Domitys. In H1 2019, disposed activities include Guy Hoquet l’Immobilier.

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

    Operational reporting: According to IFRS but with joint ventures proportionately consolidated. This presentation is used by management as it better reflects the economic reality of the Group’s business activities

    Property Management: Management of residential properties (rentals, brokerage), common areas of apartment buildings (as managing agent on behalf of condominium owners), commercial properties, and services provided to users. The Group’s business activities in the management and operation of student residences as well as flexible workspaces are included in this segment.

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

    Annex 1: Operational reporting

    Reservations – Residential Real Estate

     2021 2020 2019
    Number of unitsQ4Q3Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1
    New homes (France)7,6584,0924,8433,508 7,2993,8485,4023,450 7,3444,1635,2463,598
    Subdivisions772367439338 660244297360 836435559258
    International216247404249 50319374165 30716113736
    Total new scope8,6464,7065,6864,095 8,4624,2855,7733,975 8,4874,7595,9423,892
    Reservations carried out directly by Ægide  348389 143336392207 450394357285
    Total (in number of units)8,6464,7066,0344,484 8,6054,6216,1654,182 8,9375,1536,2994,177


     2021 2020 2019
    Value, in €m incl. VATQ4Q3Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1
    New homes (France)1,4478451,056792 1,5348551,141750 1,4427971,079714
    Subdivisions55334229 57192530 76354620
    International31487241 91291126 4737133
    Total new scope1,5339271,170862 1,6829031,177806 1,5658681,138738
    Reservations carried out directly by Ægide  8590 32709041 871137259
    Total (in €m incl. VAT)1,5339271,255952 1,7139741,267847 1,6529811,209797

    Breakdown of new home reservations in France by client

    In number of units 2021 2020 2019
    Homebuyers3,35516% 3,16315% 4,24819%
    o/w: - First time buyers2,86314% 2,70313% 3,65417%
    - Other home buyers4922% 4602% 5943%
    Individual investors8,04439% 7,08634% 9,71945%
    Professional landlords9,43945% 10,82851% 7,87036%
    O/w : - Institutional investors3,36516% 6,54531% 2,83313%
    - Social housing operators6,07429% 4,28320% 5,03723%
    Total20,838100% 21,077100% 21,837100%

    Services

      December 2021 December 2020 Change
    Property Management      
    Portfolio of managed housing      
    - Condominium management   703,000 0.0%
    Restatement of disposed activities*    18,000 0.0%
    - Condominium management restated 672,000 685,000 - 1.9%
    - Rental management   173,000 0.0%
    Restatement of disposed activities*    12,900 0.0%
    - Rental management restated 155,000 160,100 - 3.2%
    Commercial real estate      
    - Assets under management (in millions of sq.m) 20.4 19.7 + 4%
    Serviced properties      
    Student residences       
    - Number of residences in operation 129 125 + 4
    - Rolling 12-month occupancy rate 92.7% 94.0% - 1.3 pts
    Shared office space      
    - Managed areas (in sq.m)  57.000 57.000 0
    - Rolling 12-month occupancy rate 74% 69% + 5.0 pts
    Distribution       
    - Total reservations 4,983 3,869 + 29%
    - Reservations on behalf of third parties  3,208 2,188 + 47%
    * Units managed by Nexity's polish team in condominium management and by Domitys in rental management    

    Quarterly figures

    Revenue

     2021 2020 2019
    In € millionQ4Q3Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1
    Development1,279815827851 1,747703680524 1,252682679606
    Residential Real Estate development1,105735742655 1,216642434467 1,151586594511
    Commmercial Real Estate development1797985195 5306124757 101968495
    Services270198209176 237198161171 260189185173
    Property management141140129126 129133114126 137133130123
    Distribution129588050 108654745 123565550
    Other activities -  -1 ---- --1-
    Revenue - New scope1,5501,0131,0361,028 1,983901842695 1,512871864779
    Revenue from disposed activities-- 107104 1341208892 1829495102
    Revenue1,5501,0131,1431,132 2,1181,021929787 1,694964959881

    Backlog

     2021 2020 2019
    In € million, excluding VATFY9MH1Q1 FY9MH1Q1 FY9MH1Q1
    Residential Real Estate development5,6565,6105,5045,641 5,7895,3975,2854,796 4,6404,5104,4934,269
    Commercial Real Estate development9741,0131,0591,138 1,032321373398 456401269222
    Total Backlog 6,6296,6226,5636,778 6,8205,7195,6595,194 5,0954,9114,7624,491
    Restatement of operations carried out directly by Ægide   242 280        
    Total Backlog new scope6,6296,6226,5636,536 6,540        

    Half-year figures

    Reservations – Residential Real Estate

     2021 2020 2019
    Number of unitsFYH2H1 FYH2H1 FYH2H1
    New homes (France)20,10111,7508,351 19,99911,1478,852 20,35111,5078,844
    Subdivisions1,9161,139777 1,561904657 2,0881,271817
    International1,116463653 935696239 641468173
    Total new scope23,13313,3529,781 22,49512,7479,748 23,08013,2469,834
    Reservations carried out directly by Ægide737 737 1,078479599 1,486844642
    Total (in number of units)23,87013,35210,518 23,57313,22610,347 24,56614,09010,476
                
     2021 2020 2019
    Value, in €m incl. VATFYS2S1 FYS2S1 FYS2S1
    New homes (France)4,1402,2921,848 4,2812,3901,892 4,0312,2391,793
    Subdivisions1598871 1317655 17711166
    International19379113 15612036 1008416
    Total new scope4,4922,4602,032 4,5682,5851,983 4,3082,4331,875
    Reservations carried out directly by Ægide175 175 233102131 330200131
    Total (in €m incl. VAT)4,6672,4602,207 4,8022,6872,115 4,6392,6332,006

    Revenue

      2021 2020 Restated* 2019
    In € million FYH2H1 FYH2H1 FYH2H1
    Development 3,7712,0941,678 3,6542,4491,204 3,2181,9341,284
    Residential Real Estate development 3,2791,8821,398 2,7591,858901 2,8421,7371,105
    Commmercial Real Estate development 492212280 895592303 376197179
    Services 853467385 767435333 807449358
    Property management 537281256 503263240 523270253
    Distribution 316186130 26517292 284179105
    Other activities 101 000 101
    Revenue - New scope 4,6252,5622,063 4,4212,8841,537 4,0262,3831,643
    Revenue from disposed activities 2110211 434254179 473275197
    Revenue 4,8372,5622,275 4,8553,1391,716 4,4992,6581,840

    Current operating profit

      2021 2020 Restated* 2019
    In € million FYH2H1 FYH2H1 FYH2H1
    Development 330205125 27521361 29519897
    Residential Real Estate development 27119181 2031958 25217577
    Commmercial Real Estate development 591444 721854 432320
    Services 744826 412714 815427
    Property management 372314 20128 452619
    Distribution 372512 21156 36288
    Other activities (33)(19)(15) (35)(26)(9) (36)(25)(11)
    Current operating profit - New scope 371235136 28121566 339227112
    Non-current operating profit 157(69)41 (2)14-16 14113
    Operating profit 528166177 27922850 353228125
    * 2020 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode (see note on page 18)

    Consolidated income statement - 31 December 2021

    In € million 31/12/2021
    IFRS    		 Restatement of joint-ventures31/12/2021
    Operational reporting    		 Restatement of disposed activitiesRestatement of non-recurring items31/12/2021
    Operational
    reporting before
    non-recurring items on the new scope
    Revenue 4,468.4  368.24,836.5 (211.3) 4,625.2
    Operating expenses (3,927.8) (329.5)(4,257.2)  169.9 (4,087.3)
    Dividends received from equity-accounted investments 22.2 (22.2)- - -
    EBITDA  562.9  16.5 579.3 (41.4)  537.9
    Lease payments (182.6) -(182.6)  55.9 (126.7)
    EBITDA after lease payments  380.2  16.5 396.7  14.5  411.2
    Restatement of lease payments  182.6 - 182.6 (55.9)  126.7
    Depreciation of right-of-use assets (124.8) -(124.8)  0.0 (124.8)
    Depreciation. amortisation and impairment of non-current assets (32.8)  0.0(32.8)  0.4 (32.4)
    Net change in provisions  2.5 (0.1) 2.3 (0.7)  1.6
    Share-based payments (12.1) -(12.1)  0.3 (11.8)
    Dividends received from equity-accounted investments (22.2)  22.2  - -
    Current operating profit  373.4  38.6 412.0 (41.4)  370.6
    Capital gains on disposal  115.6 - 115.6  (115.6)-
    Operating profit  489.0  38.6 527.6 (41.4)(115.6) 370.6
    Share of net profit from equity-accounted investments 31.1 (31.1)    -
    Operating profit after share of net profit from equity-accounted investments 520.1  7.5 527.6 (41.4)  486.2
    Cost of net financial debt  (42.6) (3.0)(45.6)  2.2 (43.4)
    Other financial income/(expenses) (16.4) (0.8)(17.3) - (17.3)
    Interest expense on lease liabilities (24.5) -(24.5)  10.4 (14.1)
    Net financial income/(expense) (83.5) (3.9)(87.4)  12.6 (74.8)
    Pre-tax recurring profit  436.6  3.6 440.2 (28.8)(115.6) 295.8
    Income tax (98.1) (3.6)(101.7)  7.2 (94.5)
    Share of profit/(loss) from other equity-accounted investments (2.0) -(2.0) - (2.0)
    Consolidated net profit  336.5 (0.0) 336.5 (21.6)(115.6) 199.3
    Attributable to non-controlling interests 11.6  0.0 11.6 -  11.6
              
    Attributable to equity holders of the parent company 324.9 (0.0) 324.9 (21.6)(115.6) 187.7
    (in euros)         
    Net earnings per share 5.85  5.85   3.38

    Disposed activities correspond to the contributions of Century 21 until 31 March 2021, and Ægide-Domitys until 30 June 2021.
    Non-recurring items at 31 December 2021 include the capital gains on the disposal of Century 21 and Ægide-Domitys, and the impairment of the International CGU.

    Simplified consolidated balance-sheet - 31 December 2021

    ASSETS
    (in € million)    		 31/12/2021
    IFRS    		 Restatement of
    joint ventures    		 31/12/2021
    Operational
    reporting    		 31/12/2020
    Restated
    Operational
    reporting*
    Goodwills 1,356.5 - 1,356.5 1,484.0
    Other non-current assets  817.6  0.1 817.7  659.9
    Equity-accounted investments  124.9 (62.4)  62.5  1.0
    Total non-current assets 2,299.0 (62.3) 2,236.7 2,144.8
    Net WCR  943.8  175.1 1,118.9 681.8
    Net assets held for sale -   - 73.3
    Total Assets 3,242.8 112.8 3,355.6 2,899.9
             
    Liabilities and equity
    (in € million)    		 31/12/2021
    IFRS    		 Restatement of
    joint ventures    		 31/12/2021
    Operational
    reporting    		 31/12/2020
    Restated
    Operational
    reporting*
    Share capital and reserves 1,603.6  0.0 1,603.6 1,611.8
    Net profit for the period 324.9 (0.0)  324.9  113.0
    Equity attributable to equity holders of the parent company 1,928.6 0.0 1,928.6 1,724.8
    Non-controlling interests  19.6  0.0  19.6 9.2
    Total equity 1,948.2 0.0 1,948.2 1,734.1
    Net debt 1,122.1  101.7 1,223.8 1,015.4
    Provisions  102.4  1.8  104.2 105.8
    Net deferred tax  70.2  9.2  79.5 44.6
    Total Liabilities and equity 3,242.8 112.8 3,355.6 2,899.9

    * 2020 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode (see note on page 18)

    Net debt - 31 December 2021

     

     

     

    (in € million)    		31/12/2021
    IFRS    		Restatement of
    joint ventures    		31/12/2021
    Operational reporting    		 31/12/2020
    Operational
    reporting
    Bond issues (incl. accrued interest and arrangement fees)806.3- 806.3  997.0
    Loans and borrowings 865.7 89.6 955.3  917.2
    Loans and borrowings1,672.089.61,761.6 1,914.2
          
    Other financial receivables and payables(133.0) 137.7 4.7 (7.3)
          
    Cash and cash equivalents(1,061.6)(142.5)(1,204.2) (1,427.5)
    Bank overdraft facilities 19.2 16.9 36.2  71.0
    Net cash and cash equivalents(1,042.4)(125.6)(1,168.0) (1,356.5)
          
    Net financial debt before lease liabilities496.6 101.7 598.3  550.4
          
    Lease liabilities625.5-625.5 465.0
          
    Total net debt including lease liabilities and before IFRS 51,122.1 101.71,223.8 1,015.4

    Simplified statement of cash flows - 31 December 2021

    (in € million)31/12/2021
    IFRS (12-
    month period)    		Restatement
    of joint
    ventures    		31/12/2021
    Operational
    reporting    		 31/12/2020
    Restated operational
    reporting*
    Consolidated net profit 336.5(0.0) 336.5  119.2
    Elimination of non-cash income and expenses2.5 31.5 34.0  256.3
    Cash flow from operating activities after interest and tax expenses338.9 31.5 370.4  375.5
    Elimination of net interest expense/(income)67.1 3.0 70.1  81.2
    Elimination of tax expense, including deferred tax96.5 3.6 100.1  68.6
    Cash flow from operating activities before interest and tax expenses502.5 38.1 540.7  525.4
    Repayment of lease liabilities(182.6)-(182.6) (206.8)
    Cash flow from operating activities after lease payments but before interest
    and tax expenses    		319.9 38.1 358.0  318.6
    Change in operating working capital (318.5)(86.6)(405.1)  393.7
    Dividends received from equity-accounted investments22.2(22.2)-  
    Interest paid (33.0)(3.0)(36.0) (35.6)
    Tax paid (75.8)(6.4)(82.2) (51.7)
    Net cash from/(used in) operating activities(85.1)(80.1)(165.3)  625.0
    Net cash from/(used in) net operating investments(53.4)(0.0)(53.4) (66.6)
    Free cash flow(138.5)(80.1)(218.6)  558.4
    Acquisitions of subsidiaries and other changes in scope211.9(0.2) 211.7 (39.9)
    Reclassification IFRS 5--- (62.5)
    Other net financial investments(20.9) 0.5(20.3) (7.1)
    Net cash from/(used in) investing activities191.1 0.3 191.4 (109.5)
    Dividends paid to equity holders of the parent company(110.6)-(110.6) (109.8)
    Other payments to/(from) minority shareholders(48.1)-(48.1) (43.5)
    Net disposal/(acquisition) of treasury shares(18.1) (18.1) (22.2)
    Change in financial receivables and payables (net) (86.9) 102.3 15.4 (24.5)
    Net cash from/(used in) financing activities(263.8) 102.3(161.4) (200.0)
    Impact of changes in foreign currency exchange rates0.2- 0.2 (1.0)
    Change in cash and cash equivalents(211.0) 22.5(188.5)  247.9

    * 2020 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode (see note on page 18)

    Capital employed

    In € million    2021
      Total
    excl. right-of-use assets    		Total
    incl. right-of-use assets    		 Non-current
    assets    		 Right-of-use
    assets    		 WCR Goodwill
    Development 1,0861,135 33 49 1,053  
    Services 179678 104 499 75  
    Other Activities and not attributable 1,4301,463 82 33 (9) 1,356
    Group capital employed 2,6943,276 219 582 1,119 1,356
                
    In € million    2020 restated
      Total
    excl, right-of-use assets    		Total
    incl, right-of-use assets    		 Non-current
    assets    		 Right-of-use
    assets    		 WCR Goodwill
    Development 752795 33 43 718  
    Services 150521 101 371 49  
    Other Activities and not attributable 1,4481,465 49 17 (85) 1,484
    Group Capital employed  2,3502,781 184 431 682 1,484

    Restated consolidated income statement at 31/12/2020 on the new scope

    2020 restatement: accounting of software costs used in SaaS mode

    The 2020 accounts have been restated to take into account the IFRS IC decision of March 2021 on the cost of software used in Saas mode, according to which the costs of configuring and adapting Saas tools can no longer give rise to the recognition of fixed assets but must be expensed as incurred. The retrospective impact of this change of method amounts to a decrease in operating income of €6.8 million and a decrease in net profit of €5.0 million.

    In € million 31/12/2020
    IFRS restated*    		 Restatement of
    joint ventures    		31/12/2020
    restated operational
    reporting*    		 Restatement of
    non-recurring
    items    		Restatement of non-recurring
    items    		31/12/2020
    Operational
    reporting before
    non-recurring items on the new scope restated*
    Revenue 4,511.6  343.04,854.6 (433.6)-4,421.0
    Operating expenses (4,003.8) (307.9)(4,311.7)  336.4-(3,975.3)
    Dividends received from equity-accounted investments 17.8 (17.8)-  --
    EBITDA  525.7  17.3 542.9 (97.2)- 445.8
    Lease payments (206.8) -(206.8)  93.1 (113.7)
    EBITDA after lease payments  318.9  17.3 336.2 (4.1)- 332.1
    Restatement of lease payments  206.8 - 206.8 (93.1)  113.7
    Depreciation of right-of-use assets (196.0) -(196.0)  86.7-(109.3)
    Depreciation, amortisation and impairment of non-current assets (50.6) -(50.6)  11.2-(39.4)
    Net change in provisions (6.6)  0.3(6.2)  0.7-(5.5)
    Share-based payments (11.7) -(11.7)  0.7-(11.0)
    Dividends received from equity-accounted investments (17.8)  17.8   --
    Current Operating profit  243.0  35.4 278.5  2.1- 280.6
    Revaluation after acquisition of control of companies from equity-accounted investments - --  --
    Operating profit  243.0  35.4 278.5  2.1- 280.6
    Share of net profit from equity-accounted investments 28.7 (28.7)    -
    Operating profit after share of net profit from equity-accounted investments 271.8  6.7 278.5  2.1- 280.6
    Cost of net financial debt  (49.5) (2.3)(51.8)  4.6-(47.2)
    Other financial income/(expenses) (3.6) (0.7)(4.3)  0.2(2.0)(6.1)
    Interest expense on lease liabilities (29.5) -(29.5)  17.6 (11.9)
    Net financial income/(expense) (82.5) (3.0)(85.5)  22.4(2.0)(65.1)
    Pre-tax recurring profit  189.2  3.7 192.9  24.5(2.0) 215.5
    Income tax (68.1) (3.7)(71.9) (2.5)-(74.4)
    Share of profit/(loss) from other equity-accounted investments (1.9) -(1.9)  -(1.9)
    Consolidated net profit  119.2  0.0 119.2  22.0(2.0) 139.3
    o/w non-controlling interests 6.2  0.0 6.2 (1.3)- 4.9
             -
    o/w equity holders of the parent company 113.0  0.0 113.0  23.3(2.0) 134.4
    (in euros)         
    Net profit per share 2.05  2.05   2.43

    * 2020 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode (see note on page 18)

    Non-recurring items at 31 December 2020 included the change in the fair value of the ORNANE bond for +€2 million.

    Annex 2: IFRS

    Consolidated income statement - 31 December 2021

    In € million 31/12/2021
    IFRS    		 31/12/2020
    IFRS Restated*
    Revenue 4,468.4 4,511.6
    Operating expenses (3,927.8) (4,003.8)
    Dividends received from equity-accounted investments 22.2  17.8
    EBITDA  562.9  525.7
    Lease payments (182.6) (206.8)
    EBITDA after lease payments  380.2  318.9
    Restatement of lease payments 182.6 206.8
    Depreciation of right-of-use assets (124.8) (196.0)
    Depreciation. amortisation and impairment of non-current assets (32.8) (50.6)
    Net change in provisions  2.5 (6.6)
    Share-based payments (12.1) (11.7)
    Dividends received from equity-accounted investments (22.2) (17.8)
    Current operating profit  373.4  243.0
    Capital gains on disposal  115.6 -
    Operating profit  489.0  243.0
    Share of net profit from equity-accounted investments 31.1  28.7
    Operating profit after share of net profit from equity-accounted investments 520.1  271.7
    Cost of net financial debt  (42.6) (49.5)
    Other financial income/(expenses) (16.4) (3.6)
    Interest expense on lease liabilities (24.5) (29.5)
    Net financial income/(expense) (83.5) (82.5)
    Pre-tax recurring profit  436.6  189.1
    Income tax (98.1) (68.1)
    Share of profit/(loss) from other equity-accounted investments (2.0) (1.9)
    Consolidated net profit  336.5  119.2
    Attributable to non-controlling interests 11.6  6.2
         
    Attributable to equity holders of the parent company 324.9  113.0
    (in euros)    
    Net earnings per share 5.85 2.05

    * 2020 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode (see note on page 18)

    Simplified consolidated balance-sheet - 31 December 2021

    ASSETS
    (in € million)    		 31/12/2021
    IFRS    		 31/12/2020
    IFRS Restated*
    Goodwills 1,356.5 1,484.0
    Other non-current assets  817.6  659.1
    Equity-accounted investments  124.9  57.8
    Total non-current assets 2,299.0 2,200.9
    Net WCR  943.8  591.3
    Net assets held for sale -  73.3
    Total Assets 3,242.8 2,865.5
         
    Liabilities and equity
    (in € million)    		 31/12/2021
    IFRS    		 31/12/2020
    IFRS restated*
    Share capital and reserves 1,603.6 1,611.9
    Net profit for the period 324.9  113.0
    Equity attributable to equity holders of the parent company 1,928.6 1,724.9
    Non-controlling interests  19.6  9.2
    Total equity 1,948.2 1,734.1
    Net debt 1,122.1  991.3
    Provisions  102.4  104.1
    Net deferred tax  70.2  36.0
    Total Liabilities and equity 3,242.8 2,865.5

    * 2020 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode (see note on page 18)

    Net debt - 31 December 2021

     

     

     

    (in € million)    		 31/12/2021
    IFRS    		 31/12/2020
    IFRS
    Bond issues (incl. accrued interest and arrangement fees) 806.3  997.0
    Loans and borrowings   865.7  877.6
    Loans and borrowings 1,672.0 1,874.7
         
    Other financial receivables and payables (133.0) (95.0)
         
    Cash and cash equivalents (1,061.6) (1,305.1)
    Bank overdraft facilities  19.2  51.7
    Net cash and cash equivalents (1,042.4) (1,253.4)
         
    Total net financial debt before lease liabilities 496.6  526.3
         
    Lease liabilities 625.5 465.0
         
    Total net debt 1,122.1  991.3

    Simplified statement of cash flows - 31 December 2021

    (in € million)31/12/2021
    IFRS    		 31/12/2020
    IFRS Restated*
    Consolidated net profit 336.5  119.2
    Elimination of non-cash income and expenses2.5  227.9
    Cash flow from operating activities after interest and tax expenses338.9  347.1
    Elimination of net interest expense/(income)67.1  78.9
    Elimination of tax expense, including deferred tax96.5  64.9
    Cash flow from operating activities before interest and tax expenses502.5  490.9
    Repayment of lease liabilities(182.6) (206.8)
    Cash flow from operating activities after lease payments but before interest
    and tax expenses    		319.9  284.2
    Change in operating working capital (318.5)  340.0
    Dividends received from equity-accounted investments22.2  17.8
    Interest paid (33.0) (33.9)
    Tax paid (75.8) (50.2)
    Net cash from/(used in) operating activities(85.1)  557.9
    Net cash from/(used in) net operating investments(53.4) (66.6)
    Free cash flow(138.5)  491.3
    Acquisitions of subsidiaries and other changes in scope211.9 (39.3)
     - (59.7)
    Other net financial investments(20.9) (7.2)
    Net cash from/(used in) investing activities191.1 (106.2)
    Dividends paid to equity holders of the parent company(110.6) (109.8)
    Other payments to/(from) minority shareholders(48.1) (43.5)
    Net disposal/(acquisition) of treasury shares(18.1) (22.2)
    Change in financial receivables and payables (net) (86.9) (1.6)
    Net cash from/(used in) financing activities(263.8) (177.1)
    Impact of changes in foreign currency exchange rates0.2 (1.0)
    Change in cash and cash equivalents336.5  119.2

    * 2020 figures have been restated following the IFRS IC decision of March 2021 on the costs of software used in Saas mode (see note on page 18)

    1 Building with no heating or air conditioning systems and maintaining an interior temperature between 22°C and 26°C throughout the year
    2 According to Nexity's estimate of the market calculated by the FPI (retail sales + bulk sales)
    3 Source: Immostat Q4 2021
    4 New Scope, i.e. without the contribution of Ægide-Domitys and Century 21

    Attachment


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