Nexity 2024 Half-Year results

POSITIVE OPERATING PROFIT, IN LINE WITH OUR EXPECTATIONS

SIGNIFICANT DELEVERAGING (€264M)

GROUP TRANSFORMATION PLAN WELL UNDERWAY

Business activity in the first half of 2024

• Retail sales stable by volume (2,823 units) in a market that remains sharply lower (down 21%¹)
• Ramp-up in urban regeneration:
  • Strong growth of the Nexity Héritage brand: number of sales agreements tripled in H1 (>1,000 units)
  • Carrefour partnership progressing according to schedule (10 building permit applications expected from Q3)
• Continued strong momentum in managed real estate: Revenue up 4%
• Backlog: €4.9bn, equating to ~2 years' revenue for Residential Real Estate

Implementation of the roadmap: Transformation plan well underway

• Refocusing: activating deleveraging levers (debt down €264m in H1)
  • Sale of PMI² finalised: sale proceeds of €400m, capital gain of €183m
  • Entered into exclusive negotiations³ with a view to selling Nexity Property Management
• Resizing: execution of the plan to reduce operating expenses, including implementation of the redundancy plan; total cost savings expected by 2026: €95m, 16% of the cost base
• Recalibrating: plan to adapt supply for sale to new market conditions
  • First half of the year with adjustments to existing supply, in line with our forecasts, reflected in decreased supply for sale (down 16% vs Dec. 2023) and virtually no completed homes in inventory (~100 units)
  • Ongoing highly selective approach and production of supply recalibrated to fit new market conditions
• Reconfiguring: business model shifting towards that of a regional, multi-product urban operator, leader in urban regeneration, fully operational by the end of the year
  • Over 130 Commitment Committee projects reviewed in H1 2024, covering ~9,300 units, 33% of which relating to urban regeneration, with no impact on the balance sheet thanks to our operational partners (Carrefour, Mirabaud, etc.)
• Reminder: Partner banks and bondholders⁴ backing the Group's transformation, in particular by waiving obligations⁵ with regard to financial ratios

Financial results in line with our expectations, solid liquidity

• Revenue: €1.7bn (down 14% on a like-for-like basis), reflecting the slowdown in business activity from projects underway
• Positive operating profit: €55m
• Net debt down to €579m; down €264m (31%) from €843m⁶, (€1.0bn at end June 2023) including:
  • Proceeds from sale of PMI (€400m)
  • Good control over WCR, despite unfavourable seasonal effect of WCR in H1 vs H2 and receipt of €85m delayed to H2 for the LGC project⁷
• Solid liquidity: €1.0bn, including a €750m undrawn credit facility

2024 and 2025 guidance unchanged barring any deterioration in the macroeconomic environment

VÉRONIQUE BÉDAGUE, CHAIRWOMAN AND CHIEF EXECUTIVE OFFICER, COMMENTED:

"Business activity in the first half of the year continued to follow the same trend as seen in the first quarter, with retail sales accounting for over 2,800 units, remaining stable even as the market continued to decline steeply.
As announced, 2024 is a year of in-depth transformation for Nexity. We are implementing our proactive roadmap: refocusing our business, making every possible effort to deleverage, rescaling by reducing the cost base, and lastly, adjusting existing supply and recalibrating new supply to fit market conditions. The plan to transform the Group by embracing an agile urban operator model, which will be fully operational by the end of the year, is thoroughly preparing Nexity to meet the latest challenges in the marketplace head-on. Our guidance for the current financial year remains unchanged. I am fully confident in Nexity's ability to bounce back from 2025 onwards based on our transformation, our very solid fundamentals, our leading position for the 5th year in a row, and the daily commitment of our teams on the ground."

KEY FIGURES FOR THE FIRST HALF OF 2024

Business activity - France	H1 2023	H1 2024	Change: H1 2024 vs H1 2023
Reservations: Residential Real Estate
Volume	6,085 units	5,060 units	-17%
Value	€1,260m	€1,060m	-16%
	31 Dec. 2023	30 June 2024	Change vs Dec. 2023
Development backlog	€5,367m	€4,907m	-9%
Financial results (in €m)	H1 2023	H1 2024	Change vs H1 2023
Revenue	2,043	1,683	-18% -14% on a like-for-like basis
Operating profit	82	55	-33%
Operating margin (as % of revenue)	4.0%	3.3%
Group share of net profit	9	45
	31 Dec. 2023	30 June 2024	Change vs Dec. 2023
Net debt1	843	579	-€264m

¹ Net debt before lease liabilities and before the adjustment relating to IFRS 5 at end-December 2023

Following the sale of the Property Management for Individuals business, finalised on 2 April 2024, revenue and operating profit for this business are presented separately in the following tables within a separate "Discontinued operations" line item for 2023 and 2024. For 2023, this line item also includes indicators relating to the activities in Poland and Portugal, which were disposed of in 2023.

I - 2024: A YEAR OF TRANSFORMATION WELL UNDERWAY

The sector is evolving in a market that is still down, with retail sales down by an estimated 30%⁸ over the first 5 months of the year, and Nexity continues to beat the market (retail sales stable in the half-year period). Some initial encouraging indicators were observed in the first half of the year, which remain to be confirmed following the political developments that took place in France in June:

• Decrease in average mortgage rates of 54 bps since the beginning of the year, equating to an estimated 5% increase in purchasing power.
• Initial drop in key ECB interest rates: 0.25% in June.
• New zoning revision in early July, reclassifying close to 700 municipalities as supply-constrained areas, expanding eligibility for PTZ interest-free loans and favouring intermediate rental housing.
  
  

After beginning to refocus its business in 2023 (discontinuation of business outside France, pivoting more quickly towards urban regeneration and first strategic and financial partnership for the PMI business), Nexity is rolling out its transformational roadmap in 2024 and is forging ahead with the implementation of its proactive decisions relating to:

• Deleveraging as part of the Group's refocusing.
• Reducing operating expenses to resize its cost base.
• Adjusting supply to fit new market conditions.
  
  

Refocusing: Making every possible effort to deleverage

• Disposal of PMI: On 2 April 2024, Nexity finalised the sale of 100% of its Real Estate Services to Individuals activities to Bridgepoint, a European leader in alternative asset management (enterprise value: €440 million; sale proceeds: €400 million; capital gain: €183 million.) It should be noted that the transaction includes a strategic partnership for a period of 6 years (which may be renewed for a further 4 years), aimed at boosting existing synergies with Nexity's development businesses and securing their long-term future.
  
  
• Disposal of NPM: Nexity has announced today that it has entered into exclusive negotiations with Crédit Agricole Immobilier with a view to selling Nexity Property Management (see specific press release published today).
  
  
  • Dividend suspended: The Board proposal to suspend the dividend in respect of financial year 2023 was approved at the Shareholders' Meeting on 23 May 2024.
    
    

Resizing: Execution of the plan to reduce operating expenses to support the Group's transformation

As part of the Group's reorganisation, and in line with announcements made on 28 February, the process of informing and consulting with employee representatives for the redundancy plan (PSE in French) began on 30 April.

• The plan will affect 502 jobs, leading to 320 involuntary departures based on current estimates, after a round of internal transfers to new positions and voluntary departures.
• The costs relating to the Group's reorganisation set aside for the first half of the year totalled €41 million.
• Savings on the cost base are expected from 2025 onwards and will represent total full-year savings of €45 million.
  
  

The overall reduction in the cost base on a full-year basis is expected to amount to €95 million, equating to a 16% reduction, 75% of which is expected to be achieved from 2025.

Recalibrating: Plan to adapt supply for sale
The Group is stepping up the pace of its plan to adjust supply for sale to fit new market conditions.

• For supply under construction and supply designed in the previous real estate cycle, the measures mainly involve realigning selling prices with the purchasing power of our clients, which is affected by the current interest rate environment, and construction costs, which have been particularly affected by business insolvencies.
• For supply in the planning stage, the Group has abandoned unprofitable programmes.

All of these measures are yielding results, reflected in decreased supply for sale (down 16% vs December 2023) and virtually no unsold completed homes at end-June (~100 units, i.e. less than 2%).

Costs of adjustments to supply amounted to €(87) million in the first half of the year:

• €(57)m recognised in Current operating profit/(loss), mainly arising from the price effect (reduction of prices on certain programmes and changes in the client mix) and cost price effect.
• €(30)m recognised in Non-recurring items, arising from programme abandonment costs and impairment of land not attributable to a specific programme.

We are continuing these ongoing actions in the second half of the year, taking into consideration sales of inventory and in line with our target of clearing out all unsold completed homes by the end of the year.

Reconfiguring: Stepping up the transformation of the Group's business model towards that of a regional, multi-product urban operator and a leader in urban regeneration

With regard to new supply, the Group continued its increasingly selective approach and during the half-year period launched production of supply recalibrated to fit new market conditions, fully aligned with our plan to transform our business model towards that of an urban operator and a leader in urban regeneration.

Over 130 Commitment Committee projects were reviewed in H1 2024, covering nearly 9,300 units, 33% of which relating to urban regeneration. Our partnerships, including those with Carrefour and Mirabaud, will enable us to scale up our urban regeneration efforts without affecting the Group's balance sheet during the land banking phase.

It should be noted that the regional, multi-product business model the Group is aiming to implement will be fully operational by the end of the year.

Waivers obtained

As a reminder, all the Group's Euro PP bondholders and partner banks agreed in Q1 2024 to waive its obligations with regard to financial ratios until the end of financial year 2024. This waiver is part of the implementation of the Group's far-reaching transformation and reflects the support Nexity has from its partner banks and Euro PP bondholders. The cost of the waivers is offset by investment income generated during the period.

II - PERFORMANCE BY DIVISION

RESIDENTIAL REAL ESTATE DEVELOPMENT

Business activity

In a housing market in which reservations are still significantly down, with a 15% overall decrease at the end of Q1, and with retail sales down 21% over the first 6 months of the year⁹, Nexity booked a total of 5,060 reservations over the period, down 17% (down 16% by value).

• Retail reservations stable at 2,823 units, supporting, at this time, our assumption that retail sales reached a low point in 2023.
• Bulk sales accounted for 2,237 reservations in the half-year period (vs 3,243 in H1 2023).

Bulk sales are not linear over the year and depend on the timing of deals signed with social housing operators over the course of the financial year. We expect the annual volume to be equivalent to last year's level. It should be noted that an agreement was sealed in late June under which CDC Habitat acquired 1,042 units, close to 50% of them intermediate housing, which will support bulk sales in the second half.

Supply for sale at end-June came to 6,558 units, down 16% relative to year-end 2023, with take-up periods slightly up at 7.8 months (vs 6.6 months at year-end 2023; down 1.5 months since H1 2023).

These trends reflect the following:

• The ongoing highly selective approach to launching programmes (with an average rate of pre-selling of 82%¹⁰ on programmes launched over the half-year period).
• The Group's ability to sell its new supply for sale, notably thanks to pricing that has been adjusted and is in line with the purchasing power of our customers and the current interest rate environment.
• The relevance of tailored financial support measures, programme by programme, put in place in the half-year period, facilitating the sale of developments under construction.
  
  

The stability seen in retail reservations in H1 2024 along with the 35% decrease in supply for sale between year-end 2022 and H1 2024 perfectly illustrate this capacity to successfully sell existing units as well as those currently under construction.

Developments under construction accounted for 47% of the total supply for sale (up 1 pt vs year-end 2023 and vs 60% for the market as a whole at year-end 2023) and the stock of unsold completed units remained marginal, at around one hundred (less than 2% of the total supply for sale).
Developments under construction and scheduled for delivery in 2024 represent under 8% of the total supply under construction.

Lastly, Nexity's supply for sale located in supply-constrained areas, and thus eligible for the "Pinel", intermediate rental housing (LLI in French) and 2024 PTZ interest-free loan schemes, accounted for 87%¹¹ of its total supply for sale at end-June.
The momentum in zoning revisions was again supported by a government order in July 2024 reclassifying 688 municipalities as supply-constrained areas, creating potential eligibility for PTZ interest-free loans for new homes or the possibility of producing intermediate housing units. This undertaking followed on the heels of a zoning revision in October 2023, which led to the reclassification of 200 municipalities as supply-constrained areas.

The backlog at end-June was €4.7 billion, equating to nearly 2 years' revenue.

This volume does not yet include the initial contributions of the Carrefour partnership to the backlog, which are expected in the second half of the year with the filing of around ten building permits starting in September.
For reference: The Carrefour partnership announced in 2023, which is fully aligned with the Group's increased emphasis on urban regeneration, covers the upgrade of 74¹² Carrefour sites across France through urban mixed-use projects, including 12,000 homes, and will generate revenue at termination of more than €2 billion over approximately the next ten years.

Financial performance in the first half of the year

(in millions of euros)	H1 2023(1)	H1 2024	Change 2024/2023
Revenue	1,355	1,216	-10%
Operating profit/(loss)	46	(66)	N/A
Margin (as % of revenue)	3.4%	N/A	N/A

⁽¹⁾ 2023 figures restated for International activities (Poland and Portugal), reclassified under a "Discontinued operations" line item

• Revenue declined by 10% to €1,216 million, primarily reflecting the decline in business activity from projects underway.
• Operating profit/(loss) (€(66) million) included €(87) million in costs related to the transformation plan:
  • Costs of adjustments to supply: €(57)m impact on Current operating profit.
  • Programme abandonment costs: €(30)m recognised in Non-recurring items.

Operating profit/(loss) does not yet include the positive effects of rescaling the cost base.

COMMERCIAL REAL ESTATE DEVELOPMENT

Business activity

With the market at a cyclical low, still marked by higher interest rates and changes in usage for commercial real estate (investment in France was down 39%¹³ year-on-year in H1 2024, a slight improvement from -55% at the end of Q1), Nexity recorded a volume of new orders in the first half of the year of €46 million, higher than the annual level in 2023 (€39 million) but still 15% lower than the level before the crisis (>€420 million in 2021).

2 VEFA off-plan agreements were signed in June covering nearly 10,000 sq.m, including one VEFA for the Lyon Confluence large-scale urban project, with a North American investment fund, for nearly 8,000 sq.m of education facilities leased to a top-tier operator. This signature illustrates Nexity's expertise and the continuing diversity in the Group's new business.

In the half-year period, the Group delivered 5 projects, including the following iconic developments:

• Reiwa, Nexity's future head office, a development totalling 25,000 sq.m, in Saint-Ouen (Seine-Saint-Denis)
• Puteaux Guillaumet¹⁴ (Hauts-de-Seine), a development totalling nearly 21,000 sq.m of coliving space
• In the beginning of the year, Paris 2024 was given access to Sector E, "Les Belvédères"¹⁵, of the Olympic and Paralympic Athletes' Village in Saint-Ouen (Seine-Saint-Denis), a large-scale, 60,000-sq.m project that includes 15,000 sq.m of commercial property assets, sold in its entirety to Groupama Immobilier.
  
  

Financial performance in the first half of the year

(in millions of euros)	H1 2023	H1 2024	Change 2024/2023
Revenue	265	182	-31%
Operating profit	23	9	-62%
Margin (as % of revenue)	8.7%	4.9%	-3.8 pts

At end-June 2024, revenue totalled €182 million and operating profit was €9 million, driven, as in 2023, by the contribution of the green business park in La Garenne-Colombes, which was 85% completed at end-June.

14 developments were in progress at end-June, totalling more than 145,000 sq.m and representing a backlog of €208 million, including the following:

• The green business park in La Garenne-Colombes (Hauts-de-Seine). This large-scale, 95,000-sq.m project, scheduled for delivery in Q3 and Q4 2024, will contribute approximately €157 million to secure H2 revenue (total revenue recognised in 2024: €261 million)
• Confluence campus (Lyon): ~8,000 sq.m of education buildings
• Carré Invalides (Paris): Renovation of the 15,400-sq.m former headquarters of the Greater Paris regional council (delivery in Q3 2024)
  
  

Services

Revenue from Services, excluding discontinued operations (PMI), amounted to €213 million at end-June 2024, down 17%, still buoyed by Serviced Properties but affected by the slowdown in Distribution.

Revenue from PMI for the first half of the year (reflecting activity up to the date of disposal on 2 April) totalled €72 million.

Financial performance in the first half of the year

(in millions of euros, excluding discontinued operations)	H1 2023	H1 2024	Change 2024/2023
Revenue	258	213	-17%
o/w: Property Management	37	35	-4%
o/w: Serviced Properties	129	134	+4%
o/w: Distribution	92	44	-52%
Operating profit/(loss)	12	(1)	N/A
Margin (as % of revenue)	4.7%	N/A	N/A

• Revenue from Property Management (primarily Property Management for Companies) remained virtually stable at €35 million, confirming the resilience of this business. It should be noted that on 10 July, an exclusive agreement was entered into with Crédit Agricole Immobilier to sell this business in its entirety.
• The Serviced Properties business (serviced residences for students, coworking spaces) posted €134 million in revenue (up 4%), driven in particular by the strong growth momentum in the portfolio of coworking businesses (11 new sites for a total of 150,000 sq.m under management¹⁶), as well as occupancy rates, which remained high at end-June for both coworking spaces (90%¹⁷) and student residences (97%).
• Lastly, as expected, revenue from Distribution activities (down 52%) reflected the downturn in the new home market and the withdrawal of individual investors. However, momentum was strong in off-plan sales (up 60% vs H1 2023) and volumes returned to their normative levels, notably thanks to efforts to make the Group's range more attractive.
  
  

Operating profit/(loss) for the Services business, excluding discontinued operations, came to €(1.4) million at end-June 2024 (vs €12 million at end-June 2023), with this decrease mainly due to lower profitability in the Distribution business, reflecting the downturns in the new home and brokerage markets. Excluding Distribution, the margin was well above 5%, reflecting the recurring nature of the business.

III - CONSOLIDATED RESULTS - OPERATIONAL REPORTING

Due to the process underway for the sale of Property Management for Companies activities, which is expected to be finalised in the second half of the year, the Group is applying IFRS 5 (on assets held for sale), which requires the assets and liabilities of these activities to be presented separately from other continuing operations in the balance sheet. The income statement has not been restated.

(in millions of euros)		H1 2023		H1 2024		Change 2024/2023
Consolidated revenue		2,043		1,683		-18%
Operating profit		82		55		-33%
% of revenue		4.0%		3.3%
Net financial income/(expense)		(44)		(54)		22%
Income tax		(12)		43
Share of profit/(loss) from equity-accounted investments		(7)		(2)
Net profit		18		42		2.3x
Non-controlling interests		(10)		3
Net profit attributable to equity holders of the parent company		9		45		5.3x

REVENUE

(in millions of euros)		H1 2023	H1 2024		Change 2024/2023
Development		1,620	1,398		-14%
Residential Real Estate Development		1,355	1,216		-10%
Commercial Real Estate development		265	182		-31%
Services		258	213		-17%
Property Management		37	35		-4%
Serviced Properties		129	134		+4%
Distribution		92	44		-52%
Other Activities		0	0		NS
Revenue excluding discontinued operations		1,878	1,611		-14%
Revenue from discontinued operations(1)		165	72		N/A
Revenue		2,043	1,683		-18%

⁽¹⁾ This line includes revenue from the PMI business sold in 2024, and revenue from the international activities sold in 2023

Revenue in the first half of 2024 totalled €1,683 million, down 18% relative to the first half of 2023 and down 14% on a like-for-like basis¹⁸.

• Revenue from Development fell by 14%, mainly as a result of the slowdown in the residential and commercial businesses in a deteriorated environment, and the reduced recognition of revenue on a percentage-of-completion basis for major commercial property projects.
• Revenue from Services, excluding discontinued operations, was down 17%, with the strong performance by the Serviced Properties business (up 4%) not enough to offset the decline in revenue from Distribution, which was affected by the downturn in the new home market.

In IFRS terms, revenue in the first half of 2024 totalled €1,581 million, down 16% relative to the first half of 2023. This figure excludes revenue from joint ventures, in accordance with IFRS 11, which requires these ventures - proportionately consolidated in the Group's operational reporting - to be accounted for using the equity method.

It should be noted that revenue generated by the development businesses from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of all inventoriable costs.

OPERATING PROFIT

		H1 2023			H1 2024
(in millions of euros)		Operating profit/(loss)	Margin		Operating profit/(loss)	Margin
Development		69.0	4.3%		(57.1)	-4.1%
Residential Real Estate Development		46.0	3.4%		(65.9)	-5.4%
Commercial Real Estate development		23.0	8.7%		8.8	4.8%
Services		12.0	4.7%		(1.4)	-0.6%
Property Management		1.0	2.7%		1.0	2.7%
Serviced Properties		9.8	7.6%		7.4	5.5%
Distribution		1.2	1.3%		(9.7)	-21.9%
Other Activities		(10.9)	NS		(5.2)	NS
Current operating profit/(loss) - New scope		70.1	3.7%		(63.7)	-4.0%
Discontinued operations(1)		12.2	7.4%		5.8	8.0%
Current operating profit/(loss)		82.3	4.0%		(58.0)	-3.4%
Non-current operating profit		-	NS		112.9	NS
Operating profit		82.3	4.0%		54.9	3.3%
This line includes current operating profit from the PMI business sold in 2024, and revenue from the international activities sold in 2023
(2) Capital gain on disposal of PMI in 2024

• Operating profit for the first half was affected by adjustments to supply and the transformation plan, amounting to €(128) million, which breaks down as follows:
  • Costs of adjustments to supply: €(87)m, including €(57)m recognised in Current operating profit/(loss) and €(30)m in abandonment costs recognised in Non-recurring items.
  • Restructuring costs: €(41)m (recognised in Non-recurring items).
• Operating profit also included the €183m capital gain on the sale of the PMI business (recognised in Non-recurring items).

2024 is a year of transition, with indicators heavily affected by the plan to transform and adapt our supply, which is necessary to ensure that we are in a position to capitalise on the resurgence from 2025 onwards.

Once this extensive transformation is complete, the Group will offer a recalibrated, repositioned supply reflecting the new market environment, backed by a refocused, resized organisation.

OTHER INCOME STATEMENT ITEMS

• The net financial expense totalled €(54) million vs €(44) million at end-June 2023. It notably reflected good control over the cost of debt in the half-year period, including the cost of waivers, which was fully offset by optimised cash management and investment income generated over the period. The average cost of borrowing stood at 3.1% at end-June, compared with 3.9% in 2023.
• Tax income at 30 June 2024 came to €45 million (versus a €(46) million tax expense at 30 June 2023), arising from the tax receivable recognised in respect of the first-half loss. The current effective tax rate (excluding the CVAE) was 23% vs 35% at year-end 2022.
• The Group share of net profit came to €45 million at 30 June 2024 vs €9 million at 30 June 2023.
  
  

IV - FINANCIAL STRUCTURE

DEBT AND LIQUIDITY

The Group's net debt before lease liabilities was €579 million at end-June, a significant decrease of
€(264) million (down 31%) from its year-end 2023 level of €843 million before IFRS 5.

IFRS net debt was €448 million at end-June, compared with €725 million at end-December before IFRS 5, down €277 million (38%).

This change included the following:

• €400 million in proceeds from the sale of PMI in early April.
• Good control over WCR (see the separate section below), despite the unfavourable seasonal effect of WCR in H1 vs H2 and the receipt of €85 million delayed to the second half of the year for the LGC project¹⁹.

(in millions of euros)		Dec. 2023	H1 2024	Change 2024/2023
Bond issues and other		821	815	(6)
Bank borrowings and commercial paper		837	496	(341)
Net cash and cash equivalents		(882)	(732)	149
Net financial debt before lease liabilities		776	579	(198)
Reclassification under IFRS 5 *		(67)	2
Net financial debt before IFRS 5		843	577	(266)

* Reclassification under IFRS 5: 31 December 2023: PMI debt of €67 million; 30 June 2024: NPM's €1.4 million in net cash

Overall, 60% of the Group's gross debt is fixed-rate debt, limiting its exposure to rising interest rates (the portion of gross debt at a fixed rate or hedged amounts to 96%).

The average cost of borrowing stood at 3.1% at 30 June 2024 (vs 3.9% in 2023).

The Group's liquidity was solid at end-June, totalling €1.0bn, including €750 million in confirmed undrawn credit facilities (total amount of credit facility: €800 million, with repayment due in 2028 and without limitations of use).

Lastly, all the Group's Euro PP bondholders and partner banks agreed in April to waive its obligations with regard to financial ratios until the end of financial year 2024. This waiver is part of the implementation of the Group's transformation and reflects the support Nexity receives from its partner banks and Euro PP bondholders.
The cost of waivers is offset by investment income generated over the period.

WORKING CAPITAL REQUIREMENT

(in millions of euros)		31 Dec. 2023	30 June 2024		Change 2024/2023
Development		1,316	1,257		(59)
Residential Real Estate Development (1)		1,240	1,138		(102)
Commercial Real Estate development		76	120		+43
Services		62	78		+16
Other Activities		(39)	(19)		+20
Total WCR excluding tax		1,340	1,316		(23)
Corporate income tax		7	10		+3
Working capital requirement (WCR)		1,346	1,326		(21)

The WCR stood at €1,326 million, down by €21 million. This change reflects a €(102) million decline in residential development as a result of:

• Increased selectivity: land purchases down €60 million vs H1 2023.
• Optimised timing of land acquisition and the first calls for funds (simultaneous purchase of land, signing of deeds and calls for funds).
• Accelerated payment collection, due in particular to the centralised payment collection unit in place since 1 January 2024.
• Favourable accounting effect on WCR arising from abandonment costs.

It should be noted that the Group maintained good control over WCR in the first half of the year, despite the unfavourable seasonal effect of WCR in H1 vs H2 and the receipt of €85 million delayed to H2 for the LGC project²⁰.

V - ONGOING LOW-CARBON AMBITIONS

In the first half of 2024, Nexity continued to roll out its ambitious strategy in support of resilient low-carbon cities.

The Group's low-carbon ambition is to achieve a 42% reduction in its carbon impact per square metre delivered between 2019 and 2030, 10% above the level required by France's RE2020 environmental regulations²¹. On average in the first half of 2024, the Group's developments at building permit stage outperformed RE2020 requirements by 30% (after outperforming the requirements by 25% in 2023 and by 10% in 2022), thanks to the ongoing rollout of heat pumps and low-carbon construction methods as well as strong growth in renovation in our output.

A plan to enable ecological consultants to be deployed on a more systematic basis at our operations has been shared with our teams, and training to conduct systematic resilience assessments has been finalised.

The first Climate and Biodiversity Report, presenting the Group's strategic vision with regard to climate, biodiversity and resource issues, as well as the commitments and actions undertaken, was prepared in addition to the Integrated Annual Report and provided to shareholders for the Shareholders' Meeting in May 2024 (link).

Lastly, the Sustainable Framework published on 11 October 2023 has been updated to reflect changes in the scope of consolidation during the period. This framework includes an asset-based component as well as a sustainability-linked financing component. This framework was reviewed by ISS-ESG, which issued a Second-Party Opinion (SPO) that described Nexity's aims as being robust and in line with market best practice. These documents are available in the Green Finance section of the Group's website.

VI - CHANGE IN GOVERNANCE

All resolutions put to the vote at the Shareholders' Meeting on 23 May were duly adopted, including:

• The ratification of the co-optation of Florence Verzelen as a Director, replacing Myriam El Khomri;
• The appointment of Enrique Martinez as a Director, replacing Luce Gendry.

The Board of Directors, which met after the Shareholders' Meeting, also:

• Appointed Charles-Henri Filippi as Vice-Chairman of the Board of Directors and Chairman of the Remuneration and Appointments Committee
• Appointed Agnès Nahum as Senior Independent Director and Chairwoman of the Audit and Accounts Committee
• Updated the membership and chairmanship of the Board's specialised committees, as detailed in the annex.
  
  

The Board of Directors now consists of 10 directors², including 6 independent directors and 5 women, in line with the recommendations of the AFEP-MEDEF code.

VII - GUIDANCE FOR 2024 AND 2025 UNCHANGED

Thanks to the effective implementation of its roadmap, especially the sales of the PMI and Property Management for Companies businesses and the measures taken to adjust and transform its organisation, barring any deterioration in the macroeconomic environment, the Group's 2024 guidance remains unchanged:

• Operating profit to remain positive while reaching a low point, taking into account gains on disposals, the costs of adjusting supply to new market conditions and costs relating to the Group's reorganisation, paving the way for a rebound in 2025
• Net financial debt considerably lower than at the end of 2023

In addition, backed by these transformation initiatives, Nexity is targeting improved profitability starting in 2025, and is consequently aiming to bring its net debt to a maximum of €500 million at year-end 2025.

*****

FINANCIAL CALENDAR & PRACTICAL INFORMATION

• Q3 2024 revenue and business activityThursday, 24 October 2024 (after market close)
• 2024 full-year resultsThursday, 27 February 2025 (after market close)

A conference call will be held today in French, with simultaneous translation into English, at 6:30 p.m. (Paris time), which can be joined via the "Finance" section of our website, https://nexity.group/en/finance, or by calling one of the following numbers:

Calling from France	[phone]
Calling from elsewhere in Europe	[phone]
Calling from the United States	[phone]

Code: Nexity FR / Nexity EN

Webcast link: https://channel.royalcast.com/landingpage/nexityfr/20240725_1/

The presentation accompanying this conference will be available on the Group's website from 6:30 p.m. (Paris time) and may be viewed at the following address: www.nexity.group/en/finance
The conference call will be available on replay at www.nexity.group/en/finance from the following day.

Disclaimer:

The condensed consolidated interim financial statements were approved by the Board of Directors on 25 July 2024. They were subject to a limited review by the Statutory Auditors.

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 Chapter 2 of the Universal Registration Document filed with the AMF under number D.23-0251 on 6 April 2023 could have an impact on the Group's operations and the Company's ability to achieve its targets. Accordingly, the Company cannot give any assurance as to whether it will achieve its stated targets, and makes no commitment or undertaking to update or otherwise revise this information.

Contact:
Anne-Sophie Lanaute - Head of Investor Relations and Financial Communications
[phone] / [e-mail]

ANNEX: OPERATIONAL REPORTING

Residential Real Estate Development - Quarterly reservations

		2022					2023					2024
Number of units		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2
New homes (France)		3,490	4,149	3,807	6,569		2,811	3,274	3,128	5,389		2,005	3,055
Reservations made directly with Ægide		-	-	-	-		-	-	-	-		-	-
Total new homes (France)		3,490	4,149	3,807	6,569		2,811	3,274	3,128	5,389		2,005	3,055
Subdivisions		337	423	219	558		288	359	186	217		221	218
Total number of reservations (France)		3,827	4,572	4,026	7,127		3,099	3,633	3,314	5,606		2,226	3,273

		2022					2023							2024
Value (€m incl. VAT)		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4			Q1		Q2
New homes (France)		764	992	805	1,363		575	685	605	1,099			446		614
Reservations made directly with Ægide		-	-	-	-		-	-	-	-			-		-
Total new homes (France)		764	992	805	1,363		575	685	605	1,099			446		614
Subdivisions		27	37	18	53		28	28	25	20			18		17
Total amount of reservations (France)		790	1,029	824	1,416		604	713	630	1,119			464		631

Residential Real Estate Development - Cumulative reservations

		2022					2023					2024
Number of units		Q1	H1	9M	12M		Q1	H1	9M	12M		Q1	H1
New homes (France)		3,490	7,639	11,446	18,015		2,811	6,085	9,213	14,602		2,005	5,060
Reservations made directly with Ægide		-	-	-	-		-	-	-	-		-	-
Total new homes (France)		3,490	7,639	11,446	18,015		2,811	6,085	9,213	14,602		2,005	5,060
Subdivisions		337	760	979	1,537		288	647	833	1,050		221	439
Total number of reservations (France)		3,827	8,399	12,425	19,552		3,099	6,732	10,046	15,652		2,226	5,499

		2022					2023					2024
Value (€m incl. VAT)		Q1	H1	9M	12M		Q1	H1	9M	12M		Q1	H1
New homes (France)		764	1,756	2,561	3,924		575	1,260	1,865	2,964		446	1,060
Reservations made directly with Ægide		-	-	-	-		-	-	-	-		-	-
Total new homes (France)		764	1,756	2,561	3,924		575	1,260	1,865	2,964		446	1,060
Subdivisions		27	64	82	135		28	56	81	101		18	35
Total amount of reservations (France)		790	1,819	2,643	4,059		604	1,316	1,946	3,065		464	1,095

Breakdown of new home reservations (France) by client

(number of units)	H1 2023		H1 2024		Change H1 2024 / H1 2023
Homebuyers	1,075	18%	1,114	22%	4%
o/w: - First-time buyers	890	15%	947	19%	6%
- Other homebuyers	185	3%	167	3%	-10%
Individual investors	1,767	29%	1,709	34%	-3%
Professional landlords	3,243	53%	2,237	44%	-31%
o/w: - Institutional investors	693	11%	718	14%	4%
- Social housing operators	2,550	42%	1,519	30%	-40%
Total	6,085	100%	5,060	100%	-17%

Backlog

		2022					2023					2024
(in millions of euros, excluding VAT)		Q1	H1	9M	12M		Q1	H1	9M	12M		Q1	H1
Residential Real Estate Development (France)		5,230	5,219	5,158	5,321		5,225	5,168	5,041	5,019		4,845	4,699
Commercial Real Estate development		935	906	827	779		659	536	445	349		248	208
Total		6,165	6,125	5,995	6,100		5,883	5,704	5,485	5,367		5,093	4,907

Services

		December 2023		June 2024		Change
Property Management (1)
Commercial Real Estate
- Assets under management (in millions of sq.m)		20		12		-39%
Serviced Properties
Student residences
- Number of residences in operation		133		133		0
- Rolling 12-month occupancy rate		97%		97%		+0.1 pts
Shared office space
- Floor space under management (in sq.m)		133,040		150,821		+17,781
- Rolling 12-month occupancy rate		83%		84%		+0.3 pts
Distribution		June 2023		June 2024		Change
- Total reservations		1,707		1,353		-21%
- o/w: Reservations on behalf of third parties		1,116		756		-32%

⁽¹⁾ The table excludes data relating to Property Management for Individuals activities, following the finalisation of the sale of 100% of its Real Estate Services to Individuals activities on 2 April 2024.

Revenue - Quarterly figures

	2022(1)					2023(1)					2024
(in millions of euros)	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2
Development	675	842	774	1,356		700	921	695	1,067		593	805
Residential Real Estate Development	603	754	686	1,225		575	780	599	970		489	727
Commercial Real Estate development	72	89	89	131		125	140	97	97		103	78
Services	120	148	135	225		120	138	136	172		106	108
Property Management	17	18	18	19		18	18	20	21		17	18
Serviced Properties	49	53	53	62		61	68	70	72		66	68
Distribution	54	77	64	144		40	52	46	79		22	22
Other Activities	-	-	-	-		-	-	-	-		-	-
Revenue excluding discontinued operations	796	991	910	1,581		819	1,059	831	1,239		698	913
Revenue from discontinued operations(1)	99	78	81	169		76	89	84	77		71	-
Revenue	895	1,069	991	1,750		895	1,148	915	1,315		770	914
o/w: External growth in Residential Real Estate (Angelotti)	-	-	-	45		35	39	25	48		21	29
o/w: NPM	12	13	13	13		12	13	14	14		12	12
o/w: PMI	75	78	80	76		74	76	80	77		71	0
o/w: International (excluding Poland and Portugal)	1	1	35	35		3	30	0	2		0	3

⁽¹⁾ Operations disposed of in July 2023 (Poland), September 2023 (Portugal), and April 2024 (PMI)

Revenue - Half-year figures

		2022(1)				2023(1)				2024
(in millions of euros)		H1	H2	12M		H1	H2	12M		H1
Development		1,518	2,130	3,647		1,620	1,763	3,383		1,398
Residential Real Estate Development		1,357	1,910	3,267		1,355	1,569	2,924		1,216
Commercial Real Estate development		161	220	380		265	194	459		182
Services		269	361	629		258	307	565		213
Property Management		35	38	73		37	41	78		35
Serviced Properties		102	115	217		129	141	270		134
Distribution		132	208	340		92	125	217		44
Other Activities		-	-	-		-	-	-
Revenue excluding discontinued operations		1,786	2,490	4,277		1,878	2,070	3,948		1,611
Revenue from discontinued operations(1)		177	250	427		165	160	325		72
Revenue		1,964	2,740	4,704		2,043	2,231	4,273		1,683
o/w: External growth in Residential Real Estate Development (Angelotti)		-	45	45		74	73	147		50
o/w: NPM		24	26	50		25	28	53		24
o/w: PMI		153	156	309		150	157	307		72
o/w: International (excluding Poland and Portugal)		2	70	71		32	2	34		3

⁽¹⁾ Operations disposed of in July 2023 (Poland), September 2023 (Portugal), and April 2024 (PMI)

Operating profit - Half-year figures

		2022				2023				2024
(in millions of euros)		H1	H2	12M		H1	H2	12M		H1
Development		83	240	322		69	112	181		-57
Residential Real Estate Development		62	215	277		46	94	140		-66
Commercial Real Estate development		21	24	45		23	18	41		9
Services		23	42	65		12	34	46		-1
Property Management		-1	3	2		1	3	4		1
Serviced Properties		11	8	19		10	12	22		7
Distribution		13	31	43		1	19	20		-10
Other Activities		(12)	(39)	(51)		(11)	(12)	(23)		-5
Current operating profit - New scope		94	243	336		70	133	204		-64
Discontinued operations(1)		16	14	30		12	15	27		6
Current operating profit/(loss)		110	256	367		82	149	230		-58
Non-current operating profit		0	0	0		0	0	0		113
Operating profit		110	256	367		82	149	230		55
o/w: External growth in Residential Real Estate Development (Angelotti)		0	9	9		8	10	18		-4
o/w: NPM		-1	3	2		1	3	4		1
o/w: PMI		13	14	27		12	15	27		6
o/w: International (Germany, Belgium & Italy)		2	6	8		-1	-2	-3		-16

⁽¹⁾ Operations disposed of in July 2023 (Poland), September 2023 (Portugal), and April 2024 (PMI)

Consolidated income statement - 30 June 2024

(in millions of euros)		30/06/2023 Operational reporting		30/06/2024 IFRS		Restatement of joint ventures	30/06/2024 Operational reporting
Revenue		2,042.8		1,581.0		102.2	1,683.2
Operating expenses		(1,863.0)		(1,545.3)		(95.7)	(1,641.0)
Dividends received from equity-accounted investments				4.2		(4.2)	-
EBITDA		179.8		39.8		2.4	42.2
Lease payments		(69.3)		(83.1)		(0.0)	(83.1)
EBITDA after lease payments		110.5		(43.2)		2.4	(40.8)
Restatement of lease payments		69.3		83.1		0.0	83.1
Depreciation of right-of-use assets		(74.9)		(80.7)		(0.0)	(80.7)
Depreciation, amortisation and impairment of non-current assets		(20.6)		(20.2)		0.0	(20.2)
Net change in provisions		2.6		1.3		(0.5)	0.7
Share-based payments		(4.8)		-			-
Dividends received from equity-accounted investments				(4.2)		4.2
Current operating profit		82.3		(64.0)		6.0	(58.0)
Non-current operating profit		-		116.8		(3.8)	112.9
Operating profit		82.3		52.8		2.2	54.9
Share of net profit from equity-accounted investments		-		(0.4)		0.4
Operating profit after share of net profit from equity-accounted investments		82.3		52.4		2.6	54.9
Cost of net financial debt		(26.2)		(29.0)		(2.7)	(31.8)
Other financial income/(expenses)		(5.7)		(7.2)		0.8	(6.4)
Interest expense on lease liabilities		(12.4)		(15.8)		-	(15.8)
Net financial income/(expense)		(44.4)		(52.0)		(2.0)	(54.0)
Pre-tax recurring profit		37.9		0.4		0.6	1.0
Income tax		(12.4)		43.8		(0.6)	43.2
Share of profit/(loss) from other equity-accounted investments		(7.5)		(1.7)		-	(1.7)
Consolidated net profit		18.1		42.4		(0.0)	42.4
o/w: Attributable to non-controlling interests		9.5		(2.6)		-	(2.6)
o/w: Attributable to equity holders of the parent company		8.6		45.1		(0.0)	45.1
(in euros)
Net earnings per share		0.15		0.81			0.81

Simplified consolidated statement of financial position - 30 June 2024

ASSETS (in millions of euros)		31/12/2023 Operational reporting		30/06/2024 IFRS		Restatement of joint ventures		30/06/2024 Operational reporting
Goodwill		1,171.9		1,151.7		-		1,151.7
Other non-current assets		987.0		1,018.5		0.3		1,018.7
Equity-accounted investments		53.6		124.3		(69.4)		54.9
Net deferred tax				-		-		-
Total non-current assets		2,212.5		2,294.4		(69.1)		2,225.3
Net WCR		1,346.4		1,121.3		204.5		1,325.8
Net assets held for sale		145.7		23.2				23.2
Total assets		3,704.6		3,438.9		135.4		3,574.3
LIABILITIES AND EQUITY (in millions of euros)		31/12/2023 Operational reporting		30/06/2024 IFRS		Restatement of joint ventures		30/06/2024 Operational reporting
Share capital and reserves		1,858.3		1,879.5		-		1,879.5
Net profit for the period		19.2		45.1		-		45.1
Equity attributable to equity holders of the parent company		1,877.5		1,924.6		(0.0)		1,924.6
Non-controlling interests		63.4		62.0		-		62.0
Total equity		1,940.8		1,986.6		(0.0)		1,986.6
Net debt before lease liabilities		776.2		448.3		130.4		578.6
Lease liabilities		848.5		892.8				892.8
Provisions		81.4		104.6		2.2		106.8
Net deferred tax		57.6		6.7		2.8		9.5
Total liabilities and equity		3,704.6		3,438.9		135.4		3,574.3

Net debt - 30 June 2024

(in millions of euros)	31/12/2023 Operational reporting	30/06/2024 IFRS	Restatement of joint ventures		30/06/2024 Operational reporting
Bond issues (incl. accrued interest and arrangement fees)	786.2	794.7	-		794.7
Put options granted to minority interests	31.5	19.3	-		19.3
Loans and borrowings	841.3	451.1	46.3		497.4
Loans and borrowings	1,659.0	1,265.2	46.3		1,311.5
Other financial receivables and payables	92.6	(185.7)	156.9		(28.8)
Cash and cash equivalents	(876.4)	(673.0)	(122.3)		(795.3)
Bank overdraft facilities	86.3	41.9	49.4		91.4
Net cash and cash equivalents	(790.1)	(631.1)	(72.9)		(704.0)
Total net financial debt before lease liabilities	776.2	448.3	130.4		578.6
Reversal of reclassification under IFRS 5	28.4	(1.4)			(1.4)
Total net financial debt before lease liabilities and IFRS 5	843.6	446.9	130.4		577.2
Lease liabilities	848.5	892.8	-		892.8
Reversal of reclassification under IFRS 5	46.8	13.0			13.0
Total lease liabilities before IFRS 5	895.3	905.9	-		905.9
Total net debt	1,624.7	1,341.1	130.4		1,471.5
Total net debt before IFRS 5	1,738.9	1,352.8	130.4		1,483.1

Simplified statement of cash flows - 30 June 2024

(in millions of euros)	30/06/2023 Operational reporting	30/06/2024 IFRS (6-month period)	Restatement of joint ventures		30/06/2024 Operational reporting
Consolidated net profit	18.1	42.4	(0.0)		42.4
Elimination of non-cash income and expenses	99.7	(65.5)	0.1		(65.4)
Cash flow from operating activities after interest and tax expenses	117.8	(23.1)	0.1		(22.9)
Elimination of net interest expense/(income)	38.7	44.8	2.7		47.5
Elimination of tax expense, including deferred tax	12.3	(44.2)	0.6		(43.6)
Cash flow from operating activities before interest and tax expenses	168.8	(22.5)	3.4		(19.1)
Repayment of lease liabilities	(69.3)	(83.1)	-		(83.1)
Cash flow from operating activities after lease payments but before interest and tax expenses	99.5	(105.6)	3.4		(102.2)
Change in operating working capital requirement	(50.6)	65.1	2.2		67.3
Dividends received from equity-accounted investments	-	4.2	(4.2)		-
Interest paid	(19.9)	(24.4)	(2.8)		(27.2)
Tax paid	(54.4)	(3.4)	(4.5)		(8.0)
Net cash from/(used in) operating activities	(25.5)	(64.2)	(5.8)		(70.0)
Net cash from/(used in) net operating investments	(27.9)	(23.0)	-		(23.0)
Free cash flow	(53.3)	(87.2)	(5.8)		(93.0)
(Acquisitions)/Disposals of subsidiaries and other changes in scope	(0.9)	325.1	(0.6)		324.5
Reclassification in accordance with IFRS 5	5.0	0.2	-		0.2
Other net financial investments	2.5	(9.0)	0.0		(8.9)
Net cash from/(used in) investing activities	6.5	316.3	(0.5)		315.8
Dividends paid to equity holders of the parent company	(137.8)	0.0	(0.0)		0.0
Other payments (to)/from minority shareholders	(1.2)	(12.1)	-		(12.1)
Net disposal/(acquisition) of treasury shares	1.2	0.7			0.7
Change in financial receivables and payables (net)	30.5	(237.0)	(60.4)		(297.4)
Net cash from/(used in) financing activities	(107.3)	(248.4)	(60.4)		(308.8)
Impact of changes in foreign currency exchange rates	(0.1)	(0.1)	-		(0.1)
Change in cash and cash equivalents	(154.3)	(19.4)	(66.8)		(86.1)

Capital employed

(in millions of euros)					H1 2024
		Total (excl. right-of-use assets)	Total (incl. right-of-use assets)		Non-current assets		Right-of-use assets		WCR		Goodwill
Development		1,249	1,295		64		46		1,185
Services		166	835		89		669		78
Other Activities and not attributable		1,344	1,411		129		67		63		1,152
Group capital employed		2,759	3,542		282		783		1,326		1,152
(in millions of euros)					2023
		Total (excl. right-of-use assets)	Total (incl. right-of-use assets)		Non-current assets		Right-of-use assets		WCR		Goodwill
Development		1,371	1 421		69		49		1,302
Services		150	825		88		675		62
Other Activities and not attributable		1,227	1,251		72		24		-18		1,172
Group capital employed		2,748	3,497		230		748		1,346		1,172

ANNEX: IFRS

Consolidated income statement - 30 June 2024

(in millions of euros)		30/06/2023 IFRS		30/06/2024 IFRS
Revenue		1,891.6		1,581.0
Operating expenses		(1724.4)		(1,545.3)
Dividends received from equity-accounted investments		5.2		4.2
EBITDA		172.4		39.8
Lease payments		(69.3)		(83.1)
EBITDA after lease payments		103.1		(43.2)
Restatement of lease payments*		69.3		83.1
Depreciation of right-of-use assets		(74.9)		(80.7)
Depreciation, amortisation and impairment of non-current assets		(20.6)		(20.2)
Net change in provisions		2.4		1.3
Share-based payments		(4.8)		-
Borrowing costs directly attributable to property developments, transferred from inventory		-		-
Dividends received from equity-accounted investments		(5.2)		(4.2)
Current operating profit		69.4		(64.0)
Capital gains on disposals		-		116.8
Operating profit		69.4		52.8
Share of net profit from equity-accounted investments		7.3		(0.4)
Operating profit after share of net profit from equity-accounted investments		76.6		52.4
Cost of net financial debt		(23.1)		(29.0)
Other financial income/(expenses)		(5.6)		(7.2)
Interest expense on lease liabilities		(12.4)		(15.8)
Net financial income/(expense)		(41.1)		(52.0)
Pre-tax recurring profit		35.6		0.4
Income tax		(10.0)		43.8
Share of profit/(loss) from other equity-accounted investments		(7.5)		(1.7)
Consolidated net profit		18.1		42.4
o/w: Attributable to non-controlling interests		9.5		(2.6)
o/w: Attributable to equity holders of the parent company		8.6		45.1
(in euros)
Net earnings per share		0.15		0.81

Simplified consolidated statement of financial position - 30 June 2024

ASSETS (in millions of euros)		31/12/2023 IFRS		30/06/2024 IFRS
Goodwill		1,171.9		1,151.7
Other non-current assets		986.7		1,018.5
Equity-accounted investments		132.8		124.3
Net deferred tax		-		-
Total non-current assets		2,291.4		2,294.4
Net WCR		1,143.9		1,121.3
Net assets held for sale		145.7		23.2
Total assets		3,581.0		3,438.9
LIABILITIES AND EQUITY (in millions of euros)		31/12/2023 IFRS		30/06/2024 IFRS
Share capital and reserves		1,858.3		1,879.5
Net profit for the period		19.2		45.1
Equity attributable to equity holders of the parent company		1,877.5		1,924.6
Non-controlling interests		63.4		62.0
Total equity		1,940.8		1,986.6
Net debt before lease liabilities		657.2		448.3
Lease liabilities		848.5		892.8
Provisions		79.7		104.6
Net deferred tax		54.8		6.7
Total liabilities and equity		3,581.0		3,438.9

Consolidated net debt - 30 June 2024

(in millions of euros)		31/12/2023 IFRS		30/06/2024 IFRS
Bond issues (incl. accrued interest and arrangement fees)		786.2		794.7
Put options granted to minority interests		31.5		19.3
Loans and borrowings		743.9		451.1
Loans and borrowings		1,561.6		1,265.2
Other financial receivables and payables		(253.9)		(185.7)
Cash and cash equivalents		(715.9)		(673.0)
Bank overdraft facilities		65.4		41.9
Net cash and cash equivalents		(650.5)		(631.1)
Total net financial debt before lease liabilities		657.2		448.3
Reversal of reclassification under IFRS 5		67.4		(1.4)
Total net financial debt before lease liabilities and IFRS 5		724.6		446.9
Lease liabilities		848.5		892.8
Reversal of reclassification under IFRS 5		46.8		13.0
Total lease liabilities before IFRS 5		895.3		905.9
Total net debt		1,505.7		1,341.1
Total net debt before IFRS 5		1,620.0		1,352.8

Simplified statement of cash flows - 30 June 2024

(in millions of euros)	30/06/2023 IFRS		30/06/2024 IFRS
Consolidated net profit	18.1		42.4
Elimination of non-cash income and expenses	92.7		(65.5)
Cash flow from operating activities after interest and tax expenses	110.8		(23.1)
Elimination of net interest expense/(income)	35.5		44.8
Elimination of tax expense, including deferred tax	10.0		(44.2)
Cash flow from operating activities before interest and tax expenses	156.3		(22.5)
Repayment of lease liabilities	(69.3)		(83.1)
Cash flow from operating activities after lease payments but before interest and tax expenses	87.0		(105.6)
Change in operating working capital requirement	(89.9)		65.1
Dividends received from equity-accounted investments	5.2		4.2
Interest paid	17.1		(24.4)
Tax paid	(53.8)		(3.4)
Net cash from/(used in) operating activities	68.5		(64.2)
Net cash from/(used in) net operating investments	(27.9)		(23.0)
Free cash flow	96.5		(87.2)
Acquisitions of subsidiaries and other changes in scope	(0.9)		325.1
Reclassification in accordance with IFRS 5	5.0		0.2
Other net financial investments	2.4		(9.0)
Net cash from/(used in) investing activities	6.5		316.3
Dividends paid to equity holders of the parent company	(137.8)		0.0
Other payments (to)/from minority shareholders	(1.2)		(12.1)
Net disposal/(acquisition) of treasury shares	1.2		0.7
Change in financial receivables and payables (net)	54.7		(237.0)
Net cash from/(used in) financing activities	83.2		(248.4)
Impact of changes in foreign currency exchange rates	(0.1)		(0.1)
Change in cash and cash equivalents	(173.1)		(19.4)

GLOSSARY

Absorption rate: Available market supply compared to reservations for the last 12 months, expressed in months, for the new homes business in France.

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

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

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

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

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

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

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

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

Market share for new homes in France: Number of reservations made by Nexity (retail and bulk sales) divided by the number of reservations (retail and bulk sales) reported by the French Federation of Real Estate Developers (FPI).

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

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

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

Pipeline: Sum of backlog and business potential; may be expressed in months or years of revenue (as for backlog and business potential) based on revenue for the previous 12-month period.

Property Management: Management of residential properties (rentals, brokerage), common areas of apartment buildings (as managing agent on behalf of condominium owners), commercial properties, and services provided to users.

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

Revenue: Revenue generated by the development businesses from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of all inventoriable costs.

Serviced Properties: Operation of student residences and flexible workspaces.

1 Market data for retail sales: down 27% according to the FPI at the end of Q1 2024 - down 21% according to Adéquation for the first 6 months of 2024
2 PMI: Property Management for Individuals
3 With Crédit Agricole Immobilier; see specific press release published on 25 July 2024
4 Euro PP
5 Until the end of financial year 2024
6 Debt at year-end 2023 before IFRS 5
7 La Garenne-Colombes project
8 Market data for retail sales: down 21% according to Adéquation for the first 6 months of 2024

9 Source: Adéquation
10 Including sales to individuals and institutional investors
11 Including the effects of the October 2023 and July 2024 zoning revisions
12 The number of sites fell from 76 to 74 after local authorities exercised their right of first refusal on 2 sites
13 Source: Immostat Q2 2024
14 Joint development with Nexity Residential
15 Project led by a consortium combining Nexity, Eiffage, CDC Habitat, EDF and Groupama.
16 Total floor area net of additions/disposals
17 Method used to calculate occupancy rate updated at 1 January 2024 to take into account the inflationary environment and the impact of rent indexation; rolling 12-month basis - occupancy rate at mature sites (open for more than 12 months)
18 Excluding PMI activities disposed of on 2 April 2024, and excluding activities in Poland and Portugal, disposed of in Q3 2023
19 La Garenne-Colombes project
20 La Garenne-Colombes project
21 Regulations setting out demanding thresholds every 3 years for reducing carbon emissions across the life cycle of a real estate development (materials and energy).