Integrated Activity Report 2021

Business model

BUSINESS MODEL

2021 was a year that highlighted the relevance of Nexity’s unique model as an integrated real estate operator particularly well. The public health crisis accelerated urban changes and brought about new uses and new expectations among our clients in terms of living and working spaces. Nexity’s broad platform of real estate expertise responds to this demand with an approach that is unique in the market, as demonstrated by the solid performance recorded in 2021 both at Group level – going above and beyond its targets – and in each of its business lines.

Core strenghts

HUMAN CAPITAL AND STRONG TIES
  • Around 8,000 employees
  • ~ 15% of the share capital owned by Group employees and managers
  • 80% of employees are shareholders in the Group
  • >1 M  clients
  • >400 locations across France
  • 18 M monthly visitors to Nexity’s sites
ROBUST MODEL IN TIMES OF CRISIS
  • Asset-light, non-capital-intensive model geared toward flows, based on limited land ownership
  • Balanced presence across all cycles (short-, medium-and long-term)
  • Pooling of resources and processes to achieve economies of scale
FIRMLY ESTABLISHED, AMBITIOUS CLIMATE AND BIODIVERSITY STRATEGY
  • Low-carbon trajectory certified by the SBTi initiative as aligned with the Paris Agreement (and a new trajectory that aims to be certified as aligned with the 1.5 °C target)
  • Involvement in Act4nature International and Biodiversity Impulsion Group initiatives

CHANGES IN SOCIETY AND ENVIRONMENTAL CHALLENGES

Demographic trends – Urbanisation and increasing urban density – New expectations and new uses – Climate and biodiversity conservation

Amplified by the public health crisis

OUR CLIENT INDIVIDUAL – OUR LOCAL AUTHORITY CLIENTS – OUR INSTITUTIONAL CLIENTS – OUR COMMERCIAL CLIENTS

LIFE TOGETHER

Develepment and Real estate services
Two business lines structured as a service platfom with packaged offerings

OUR STRATEGIC AMBITION

To be mindful of how each individual occupies spaces and makes them their own, and to respond to new lifestyles and behaviours, to develop inclusive, low-carbon and biodiversity-friendly towns and cities.

Value creation

SOLID FINANCIAL STRUCTURE
  • €4.6 bn in revenue (1)
  • 8% current operating margin
  • Solid balance sheet net debt < €600 m
  • Dividend of €2.50 (2)
PARTNER OF CHOICE FOR OUR CLIENTS
  • The only comprehensive platform that offers solutions that meet all our clients’ real estate needs
  • 1.6% increase in average customer satisfaction in Residential Real Estate (CSAT indicator)
  • 7th in the HCG customer relationship ranking
REDUCED ENVIRONMENTAL IMPACT
  • Reduction in carbon emissions in 2021(3) :
    • – 4% in Residential Real Estate
    • – 13 % Commercial Real Estate
  • No. 1 BBCA developer by number of projects started since 2016
  • 63 % of office building floor space delivered using timber-frame construction
EMPLOYEE ENGAGEMENT
  • Bloomberg Gender-Equality Index, recognising the best companies in terms of gender equality
  • Nexity recognised as one of France and Europe’s Best Workplaces in 2021 in the category for companies with over 2,500 employees
SUSTAINABLE SOCIETAL COMMITMENT
  • Establishment of an apprentice training centre
  • Nexity is involved in the development of 1 in 15 new social housing units in France
  • 1,220 housing units in family shelters and emergency accommodation centres completed, in progress or planned

(1) New scope i.e excluding disposed activities in 2021

(2) Subject to approval at the 18 May 2022 Shareholders’ Meeting

(3) Per sq.m delivered, relative to 2019