Earnings Release • Jul 24, 2014
Earnings Release
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Paris, Thursday, 24 July 2014
Nexity's new home reservations up slightly in 1st half 2014, in line with its forecasts
Financial results2 match Nexity's guidance
Outlook for 2014 confirmed3
1 Revenue basis – previous 12-month period.
2 The financial data and indicators used in this press release are based on Nexity's operational reporting, with joint ventures proportionately consolidated.
3 The outlook for 2014 was prepared using financial data and indicators from Nexity's operational reporting, with joint ventures proportionately consolidated. It does not include the impact of the PERL acquisition or the potential impact of housing stimulus policies.
"Since the start of the year, and especially in the second quarter, the French residential real estate market has been in a particularly tough situation. Household purchasing power has continued to decline, a host of complex regulations have been introduced (notably under the newly enacted ALUR Act) and, most importantly, buyer sentiment has suffered. All of those factors have combined to slow the – already historically low – rate of new homes entering the market for sale, whether to investors or would-be homeowners. According to French Housing Ministry statistics, the number of new home starts in the 12 months to end-May 2014 was down 9% year on year. If this trend continues, France is looking at housing production levels of 300,000 new homes per year at best.
With that in mind, Nexity is pleased to confirm its full-year target announced in early 2014, of about 10,000 net reservations (no change from 2013). However, we now believe that the French market on the whole will go down this year rather than stay flat.
On 25 June 2014, Prime Minister Manuel Valls, realising the gravity of the problems plaguing construction in France, announced a first series of initiatives which, if implemented swiftly, could help stem the market's decline in the final months of this year. The government's efforts should also have a positive impact in the medium term, assuming they are part of a larger and more proactive plan – which is the only way to rebuild confidence among investors and home buyers.
With a total of 4,537 net reservations in the first half of 2014, a 2.2% year-on-year increase, Nexity has demonstrated its resilience in a depressed market. We accomplished this thanks to a wide and diverse array of products, spot-on price positioning, sales clout, and our strong franchise with professional landlords, who accounted for 38% of Nexity's net reservations in residential real estate.
The drop in revenue and operating profit in the first half of 2014 was expected. It does not adversely impact the targets shared with the market earlier this year, which Nexity fully stands by.
Nexity's operating margin (6.6%) remained stable overall compared to the first half of 2013, driven by strong financial performances in Residential as well as Commercial real estate, and Services and Distribution Networks, where margins have begun trending towards target levels.
Another highlight of early 2014 was the completion of two major acquisitions (Oralia and PERL) which will help accelerate Nexity's profitable growth."
***
At its meeting on Thursday, 24 July 2014, chaired by Alain Dinin, Nexity's Board of Directors reviewed and approved the Group's consolidated financial statements for the half-year period ended 30 June 2014, which can be found in Annex 2 of this press release. The 2014 half-year financial statements were subjected to a limited review by the Statutory Auditors of the Company.
***
During the first six months of this year, the market for new homes in France was held back by even tougher conditions than in 2013. A slow economy, combined with heavy tax burdens, sapped consumer confidence and ate away at household purchasing power, while the European Central Bank's continued policy of low interest rates proved insufficient to make up for the underlying trend. On 25 June 2014, breaking from a long string of policies unfavourable to any housing recovery, the French government announced that it would take steps to revitalise the construction sector, and especially housing. Those announcements could help reverse the trend somewhat, if real action is taken by autumn.
Despite the challenging environment, Nexity's net reservations for new homes in France were up 2.2% by volume in the first half of the year, to 4,537. They were down 5.1% in value terms, on account of the lower unit price paid on reservations by professional landlords (social housing), who buoyed business for Nexity over the entire half-year period. The robust growth recorded in the first quarter of 2014 slowed in the second quarter (down 2% compared to Q2 2013), in both the investor and home-buyer segments. In addition, the implementation of the ALUR Act hampered the conversion of promises to sell (promesses de vente) into actual deeds of sale.
The first half of 2014 was also characterised by fewer units marketed (down 18% compared to the same period last year) – in the second quarter, Nexity intentionally reduced its scheduled commercial launches to match the slower pace of reservations.
| New home and subdivision reservations - France (units and €m) | H1 2014 | H1 2013 | Change % |
|---|---|---|---|
| New homes (number of units) | 4,537 | 4,441 | +2.2% |
| Subdivisions (number of units) | 873 | 891 | -2.0% |
| Total new home and subdivision reservations (number of units) | 5,410 | 5,332 | +1.5% |
| New homes (€m incl. VAT) | 828 | 873 | -5.1% |
| Subdivisions (€m incl. VAT) | 71 | 67 | +4.9% |
| Total new home and subdivision reservations (€m incl. VAT) | 899 | 940 | -4.4% |
Reservations by professional landlords were up noticeably (16.4%) in the first half of the year, offsetting the drop in reservations by individuals, namely home buyers (down 7.1%) and individual investors (down 2.9%), as inauspicious economic conditions and the lack of any clear prospects for improvement caused more households to put off their real estate objectives. Reservations by individual investors accounted for 31% of all reservations at 30 June 2014, versus 32% the year before. Of those reservations, 80% used the tax incentives offered under the Duflot scheme (H1 2013: 75%).
Professional landlords accounted for 38% of Nexity's total reservations. One highlight of the half-year period was the reduction in the VAT rate on social housing, from 7% to 5.5%. The change was announced in 2013 but not applied until 1 January 2014, causing some social housing operators to postpone projects until the new year. As things stand, the hoped-for renewal of institutional appetite for residential assets has yet to materialise.
| Breakdown of new home reservations by client – | ||||||
|---|---|---|---|---|---|---|
| France (number of units) | H1 2014 | H1 2013 | Change % | |||
| Home buyers | 1,405 | 31% | 1,513 | 34% | -7.1% | |
| o/w: - first-time buyers | 1,104 | 24% | 1,277 | 29% | -13.5% | |
| - other home buyers | 301 | 7% | 236 | 5% | +27.5% | |
| Individual investors | 1,394 | 31% | 1,435 | 32% | -2.9% | |
| Professional landlords | 1,738 | 38% | 1,493 | 34% | +16.4% | |
| Total new home reservations | 4,537 | 100% | 4,441 | 100% | +2.2% |
Excluding bulk sales to professional landlords and Iselection sales, the average price of homes sold in France fell by 1.7% compared to the previous year. That decrease is partly explained by the lower proportion of sales in the Paris region (42% versus 45% in first-half 2013), where the average price (€260,000) is much higher than in the rest of France (€186,000); the other factor being the decline in the average size of homes.
| Average sale price & floor area* - France | H1 2014 | H1 2013 | Change % |
|---|---|---|---|
| Average home price incl. VAT per sq.m (€) | 3,801 | 3,835 | -0.9% |
| Average floor area per home (sq.m) | 58.1 | 58.5 | -0.8% |
| Average price incl. VAT per home (€k) | 220.7 | 224.5 | -1.7% |
* excluding bulk sales and Iselection sales
For Nexity's new residential developments in France, the average presale rate recorded at the time construction work was started remained very high (76% on average in the first half of the year), and unsold completed stock held by the Group remained very low, at 65 homes as of 30 June 2014 (year-end 2013: 66).
The Residential division's new home business potential4 in France totalled nearly 24,300 units, equal to 2.5 years of reservations on a rolling 12-month basis. That level of supply will enable Nexity to muster a well-timed and effective response when the market picks up again.
Subdivision reservations totalled 873 units, down 2% compared to the first half of 2013, with the average price of net reservations from individuals rising to €81,000. The drop in volumes was part of a general decline that continued to weigh on the detached house market. According to the Union des Maisons Françaises5 (French homebuilders' association), sales were down about 3% in the three-month period from March to May 2014, compared to the same period in 2013.
Outside France, reservation levels for the half-year period were not significant.
4 Includes the Group's current supply for sale, its future supply corresponding to project phases not yet marketed on acquired land, and projects not yet launched associated with land secured through options.
5 Bulletin Markemetron - May 2014.
The beginning of the year witnessed a recovery in take-up volumes (1.1 million sq.m in first-half 2014 in the Paris region - source: CBRE), but was especially marked by major deals, which were few in 2013, and by renewed investor appetite for office assets in the Paris region. Nevertheless, economic conditions continued to undermine the anticipated development of take-up in the Paris region, translating into a disconnect between optimistic investors on the one hand and end-users with a wait-and-see attitude on the other. The market also continued to show little interest in either new-build or renovation projects that were not secured (i.e. not fully or partially pre-let).
Nexity did not record any significant new orders over the first half of 2014 (new orders equalled €21 million). Taking into account its portfolio of projects currently in the advanced set-up phase, the Group is confident that it will achieve its annual target of at least €100 million in new orders.
Oralia was integrated into Real estate services with effect from 1 April 2014. Oralia had 164,000 units under management at 30 June 2014, bringing the total portfolio of units under management in Real estate services to individuals to 944,000. On a like-for-like basis, the attrition rate remained limited to 2.4% compared to year-end 2013. With its acquisition of Oralia, Nexity has strengthened its foothold in France's big cities (primarily Paris and Lyon) and bolstered its No. 2 position in the property management business. In Real estate services to companies, total floor area under management amounted to 12 million sq.m at 30 June 2014, up 5.6% from 31 December 2013 after the signing of a major contract.
In Distribution Networks, the number of provisional sale agreements recorded in first-half 2014 by Century 21 and Guy Hoquet l'Immobilier was down 7.1% compared to the same period last year, following a difficult second quarter and signalling a bearish market for existing property transactions in the latter half of 2014. The implementation of the ALUR Act hampered the conversion of promises to sell into actual deeds of sale. The number of franchised agencies also dropped very slightly, to 1,256 agencies at 30 June 2014, from 1,261 at year-end 2013.
At 30 June 2014, Nexity's urban regeneration business (Villes & Projets) had a land development potential of 615,100 sq.m6 , up 10% from 31 December 2013, of which 70% was in the Paris region and 30% in the rest of France. Potential uses were as follows: 43% earmarked for residential projects, 27% for offices, 27% for light industry, and 3% for retail.
During the first quarter of 2014, the Group acquired an initial plot of land as part of the Acacias development project in Montreuil (Seine-Saint-Denis, Paris region). The entire project is slated to cover a total surface area of 104,500 sq.m, of which Nexity will be responsible for developing 63,350 sq.m. Urban regeneration projects generated €80.8 million in revenue for the Group's property development operations in the first half of 2014 (€8.5 million in Commercial real estate and €72.3 million in Residential), versus €148.2 million in the six months to 30 June 2013. Urban regeneration thus accounted for nearly 10% of the Group's revenue from property development in the first half of 2014.
6 Floor areas are provided for information purposes only and may be subject to adjustment once administrative authorisations have been obtained.
IFRS 11 Joint Arrangements, which is required to be applied as of 1 January 2014, states that "joint ventures" must be accounted for using the equity method (whereas before they could be proportionately consolidated). Nexity's joint ventures are mainly co-development vehicles in Residential and Commercial real estate. For operational reporting and management purposes, Nexity continues to apply proportionate consolidation to its joint ventures, which in its view provides a more accurate reflection of the Group's performance and risks as measured by revenue, operating profit, working capital and debt. Segment-specific presentations are based on operational reporting data.
The Group's external growth operations led to the following changes in scope:
Consolidated revenue for the first half of 2014 was €1,114.6 million, down 12.4% from first-half 2013.
| € millions | H1 2014 | H1 2013 | Change % |
|---|---|---|---|
| Residential real estate | 735.1 | 804.1 | -8.6% |
| Commercial real estate | 104.8 | 244.5 | -57.1% |
| Services and Distribution Networks | 230.2 | 220.4 | +4.5% |
| Other activities | 44.4 | 2.7 | NA |
| Total Group revenue* | 1,114.6 | 1,271.7 | -12.4% |
* Revenue generated by the Residential and Commercial divisions (through VEFA off-plan sales and real estate development contracts) is calculated using the percentage-of-completion method, i.e. on the basis of notarised sales pro-rated to reflect the progress of committed construction costs.
Residential real estate revenue was €735.1 million, down 8.6% from the same period in 2013. Recognised on a percentage-of-completion basis, it reflected the delayed impact of the decline in reservations-based revenue recorded some two years earlier (starting in late 2011 and continuing into 2012). Two other factors explain the decrease in residential revenue: construction starts on major developments, which take longer to deliver and therefore slow down the recognition of revenue; and the less sustained pace of sales activity.
In Commercial real estate, revenue for the half-year period (€104.8 million) was down, as expected, by 57.1% from the first half of 2013. Last year's results were boosted by substantial contributions from the Solstys site (Paris, 8 th arrondissement) and the T8 building, part of the "Paris Rive Gauche" urban planning programme (13th arrondissement). In the first half of 2014, structural work began on the division's major ongoing developments, "Eco Campus" in Châtillon and "Le Nuovo" in Clichy (both in Hauts-de-Seine, Paris region), whose contribution to division revenue remained modest.
The Services and Distribution Networks division recognised revenue of €230.2 million, up 4.5% from the first half of 2013. Real estate services to individuals recorded €16.2 million in additional revenue from the consolidation of Oralia in the second quarter. Excluding Oralia, services revenue was down 3% due to attrition in the portfolio of units under management and the low level of brokerage operations achieved by Keops. Revenue from Distribution Networks was resilient at €15 million, showing a small increase of 1.6%.
Revenue from Other activities (€44 million) included non-recurring income from the Group's April 2014 disposal of its shares in the OPCI real estate investment fund that owns the Aviso building, located in Puteaux (Hauts-de-Seine, Paris region).
Nexity's operating profit in the first half of 2014 was €73.2 million (versus €85.3 million in the first half of 2013), with an almost completely stable operating margin of 6.6%.
| € millions | H1 2014 | H1 2013 | |
|---|---|---|---|
| Residential real estate | 58.6 | 63.9 | |
| % of revenue | 8.0% | 8.0% | |
| Commercial real estate | 13.2 | 23.5 | |
| % of revenue | 12.6% | 9.6% | |
| Services and Distribution Networks | 11.0 | 7.6 | |
| % of revenue | 4.8% | 3.4% | |
| Other activities | (9.6) | (9.8) | |
| Operating profit | 73.2 | 85.3 | |
| % of revenue | 6.6% | 6.7% |
The operating margin for the Residential real estate division held steady at 8.0%, the same level as the previous year. New homes in France delivered an improved operating margin of 9.1% versus 8.5% in first-half 2013, while the margin on subdivisions was down and operations outside France again contributed a net loss to the division's operating profit. In a challenging environment, the Group continued honing its cost management techniques to provide clients with a competitively priced offering in line with their disposable resources.
The Commercial real estate division's operating margin was pushed higher (12.6% versus 9.6% in first-half 2013) by some non-recurring items over the half-year period, namely a successful legal outcome and reversals of provisions on projects delivered in 2013.
The Services and Distribution Networks division turned in an operating profit of €11.0 million, versus €7.6 million at 30 June 2013, up 45.5% and corresponding to an operating margin of 4.8% (first-half 2013: 3.4%). Despite a weak half year in brokerage operations, profit from Services increased thanks to improved cost control and Oralia's contribution in the second quarter.
Profit from franchise operations was up (€1.2 million versus €1.0 million at 30 June 2013), essentially as a result of increased revenue providing better coverage of fixed costs.
Other activities generated an unchanged operating loss of €9.6 million. That included non-allocated holding company expenses, research and structuring costs incurred by Villes & Projets7 , profit from innovation start-ups, and IFRS expenses on share-based payments (totalling €4 million). The division's 80% divestment of its asset management arm (formerly Nexity REIM) and its exit from the Aviso OPCI fund did not significantly impact the Group's financial statements at 30 June 2014.
| € millions | H1 2014 | H1 2013 |
|---|---|---|
| Revenue | 1,114.6 | 1,271.7 |
| Operating profit | 73.2 | 85.3 |
| Net financial income/(expense) | (6.3) | (2.5) |
| Corporate income tax | (27.0) | (32.6) |
| Dividend withholding tax (3%) | (3.2) | (3.2) |
| Share of profit from equity-accounted associates | 0.4 | 0.0 |
| Consolidated net profit | 37.1 | 47.1 |
| Net profit attributable to equity holders of the parent company | 35.1 | 45.1 |
The Group's net financial expense was €6.3 million (compared to €2.5 million in the first half of 2013) mainly resulting from an increase in the average amount of debt it used, following a dual-tranche €171 million bond issue in April 2014 and a €180 million convertible issue in June 2014, as well as the lower interest rates earned by its cash holdings.
Nexity's tax expense for the first half of 2014 included €3.2 million in additional 3% dividend tax and €27.0 million in corporate income tax. Excluding the dividend tax, Nexity's effective tax rate for the half-year period was 40.4%, the same as in full-year 2013.
The net profit attributable to shareholders of the Nexity parent company was €35.1 million for the period (H1 2013: €45.1 million).
| € millions | 30 June 2014 | 31 Dec. 2013 | Change in €m |
|---|---|---|---|
| Residential real estate | 598 | 533 | +65 |
| Commercial real estate | (51) | (71) | +20 |
| Services and Distribution Networks | (58) | (52) | -5 |
| Other activities | 93 | 80 | +13 |
| Operating WCR | 583 | 490 | +93 |
| Corporate income tax | 25 | (12) | +37 |
| Total WCR | 608 | 478 | +130 |
Nexity's working capital requirement increased by €130 million in the first half of the year, to €608 million at 30 June 2014 (year-end 2013: €478 million).
In the Residential real estate division, WCR increased by €65 million, notably due to greater amounts of work in progress and the slower pace of sales activity.
7 Revenue and operating profit from operations initiated by Villes & Projets are recognised in the Residential and Commercial real estate divisions.
The Commercial real estate division's WCR remained negative (-€51 million at 30 June 2014) as a result of client advances received on transaction signings.
Working capital requirement under Other activities arise mainly from Villes & Projets urban regeneration projects and from investment operations. The €13 million increase this half-year period was primarily due to a one-off impact on the holding company (intra-Group trade receivables). The substantial increase in tax-related WCR (up €37 million) was not of a recurring nature.
Nexity's consolidated equity (attributable to parent company shareholders) was €1,555 million at 30 June 2014, compared to €1,612 million at 31 December 2013, mainly after €108 million in dividends paid and the inclusion of net profit for the half-year period (€35 million attributable to parent company shareholders).
Nexity had a consolidated net debt position of €207 million at 30 June 2014, as opposed to a net cash position of €252 million at 31 December 2013. The difference between the change in WCR on the statement of financial position (€93 million) and the change in WCR on the cash flow statement (€98.3 million) is because of the scope of consolidation, which was altered by the Oralia acquisition and other items. The €459 million reduction in net cash is the result of a combination of several factors: external growth costs (€266 million) and the increase in Group WCR (€98 million) were the main reasons, in addition to dividend payments (€108 million), taxes (€59 million) and operating investments (€17 million). As a whole, these outlays were only partially offset by cash flow from operating activities before financial and tax expenses, which came to €76.1 million.
| € millions | H1 2014 | H1 2013 |
|---|---|---|
| Cash flow from operating activities before financial and tax expenses | 76.1 | 86.7 |
| Change in operating WCR * | (98.3) | (102.7) |
| Interest and tax payments | (59.2) | (13.8) |
| Net cash from (used in) operations | (81.4) | (29.7) |
| Net cash from (used in) operating investments | (17.4) | (5.5) |
| Free cash flow | (98.8) | (35.2) |
| Net cash from (used in) financial investing activities | (196.3) | (0.5) |
| Dividends paid | (108.1) | (106.6) |
| Net cash from (used in) financing activities, excluding dividends | 326.7 | 227.8 |
| Change in cash and cash equivalents | (76.5) | 85.4 |
| * Excluding changes in scope |
At 30 June 2014, the Group had authorisations from banks to borrow up to €695 million, including available facilities of €285 million on its corporate credit lines (undrawn). The Group had drawn down €171 million of its authorised credit at 30 June 2014.
| € millions | 30 June 2014 | 31 Dec. 2013 | Change in €m |
|---|---|---|---|
| Bond issues (and accrued interest) | 533.8 | 199.0 | +334.8 |
| Bank borrowings8 | 171.2 | 123.4 | +47.8 |
| Other financial borrowings and other financial receivables | 5.2 | 5.4 | -0.2 |
| Net cash and cash equivalents | (503.3) | (579.8) | +76.5 |
| Net debt/(cash) position | 206.9 | (252.1) | +459.0 |
In first-half 2014 the Group issued9 a €171 million bond in two tranches of 6 and 7 years paying respective annual coupon rates of 3.252% and 3.522%, as well as OCEANE convertibles redeemable in January 2020 for a total principal of €180 million and paying an annual coupon rate of 0.625%.
The Group was in compliance with all of the financial covenants attached to its borrowings and lines of credit as of 30 June 2014.
8 Includes IFRS restatements (fair value adjustment of derivatives).
9 See press releases dated 29 April and 12 June 2014.
| € millions, excluding VAT | 30 June 2014 | 31 Dec. 2013 | Change % |
|---|---|---|---|
| Residential real estate – New homes * | 2,617 | 2,604 | 0% |
| Residential real estate – Subdivisions | 259 | 265 | -2% |
| Residential real estate backlog | 2,876 | 2,869 | 0% |
| Commercial real estate backlog | 430 | 486 | -12% |
| Total Group backlog | 3,306 | 3,355 | -1% |
* including outside France and Iselection
The Group's total order backlog at 30 June 2014 was €3.3 billion, down slightly from year-end 2013 and equivalent to 19 months' revenue from development operations10. Order backlog for the Residential real estate division at 30 June 2014 was €2.9 billion, remaining stable compared to 31 December 2013.
10Revenue basis – previous 12-month period.
11The outlook for 2014 was prepared using financial data and indicators from Nexity's operational reporting, with joint ventures proportionately consolidated. It does not include the impact of the PERL acquisition or the potential impact of housing stimulus policies.
A conference call on H1 2014 business activity and results will take place in English on Thursday, 24 July 2014 at 19.00 CET. To participate, dial one of the following numbers:
Calling from France +33 (0)1 76 77 22 20 Code: 7828907
Calling from the rest of Europe +44 (0) 20 3427 1916 Code: 7828907 - Calling from the USA +1 212 444 0481 Code: 7828907
The presentation accompanying the conference call may be viewed at the following address: http://www.media-server.com/m/p/7u6g2gjq
The presentation will be available on the Group's website starting on 24 July 2014 at 18:45 CET.
9M 2014 revenue and business activity: Wednesday, 29 October 2014
Investor Day 2014: November 2014 (date to be announced in early September)
The information, assumptions and estimates that the Company could reasonably use to determine its objectives are subject to change or modification due notably to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks described in Section 4 of the Document de Référence, filed with the AMF under number D.14-0304 on 8 April 2014 could have an impact on the Group's activities and the Company's ability to achieve its objectives. Accordingly, the Company cannot give any assurance as to whether it will achieve the objectives described, and makes no commitment or undertaking to update or otherwise revise this information.
AT NEXITY, WE AIM TO SERVE ALL OUR CLIENTS AS THEIR REAL ESTATE NEEDS EVOLVE
Nexity offers the widest range of advice and expertise, products, services and solutions for private individuals, companies and local authorities, so as to best meet the needs of our clients and respond to their concerns.
Our businesses – transactions, management, development, urban regeneration, advisory and related services – are now all fully client focused, optimally organised to serve and support our clients. As the benchmark operator in our sector, we are resolutely committed to all of our clients, but also to the environment and society as a whole.
Nexity is listed on the SRD and on Euronext's Compartment A Member of the indices SBF 80, SBF 120, CAC Mid 60, CAC Mid & Small and CAC All Tradable Ticker symbol: NXI - Reuters: NXI.PA - Bloomberg: NXI FP ISIN code: FR0010112524 ______
______
Florence Hocdée-Leroy - Investor relations director / +33 (0)1 85 55 15 49 - [email protected]
IFRS 11 Joint Arrangements, which is required to be applied as of 1 January 2014, states that "joint ventures" must be accounted for using the equity method (whereas before they could be proportionately consolidated). Nexity's joint ventures are mainly co-development vehicles in Residential and Commercial real estate. For operational reporting and management purposes, Nexity continues to apply proportionate consolidation to its joint ventures, which in its view provides a more accurate reflection of the Group's performance and risks as measured by revenue, operating profit, working capital and debt. Segment-specific presentations are based on operational reporting data.
| (€thousands) | 30/06/2014 | 30/06/2013 |
|---|---|---|
| Revenue | 1,114,554 | 1,271,734 |
| Purchases | (695,770) | (854,279) |
| Personnel costs | (215,518) | (206,892) |
| Other operating expenses | (105,048) | (100,645) |
| Taxes other than income tax | (16,380) | (17,448) |
| Depreciation and amortisation | (8,615) | (7,210) |
| Operating profit/(loss) | 73,223 | 85,260 |
| Financial expense | ||
| Financial income | (9,529) | (8,408) |
| 3,251 | 5,943 | |
| Net financial income/(expense) | (6,278) | (2,465) |
| Pre-tax recurring profit | 66,945 | 82,795 |
| Corporate income tax | (30,281) | (35,757) |
| Share of profit/(loss) from equity-accounted associates | 405 | 50 |
| Consolidated net profit/(loss) | 37,069 | 47,088 |
| Net profit/(loss) attributable to equity holders of the parent company | 35,077 | 45,053 |
| Net profit/(loss) attributable to non-controlling interests – minority interests | 1,992 | 2,035 |
∗ According to IFRS but with joint ventures proportionately consolidated.
| ASSETS (€ thousands) |
30/06/2014 | 31/12/2013 |
|---|---|---|
| Non-current assets | ||
| Goodwill | 1,061,857 | 917,147 |
| Other intangible assets | 62,642 | 45,299 |
| Property, plant and equipment | 40,188 | 24,615 |
| Equity-accounted investments | 25,558 | 26,876 |
| Other financial assets | 133,821 | 20,286 |
| Deferred tax assets | 5,637 | 4,748 |
| Total non-current assets | 1,329,703 | 1,038,971 |
| Current assets | ||
| Inventories and work in progress | 1,366,766 | 1,357,646 |
| Trade and other receivables | 329,398 | 342,570 |
| Tax accounts receivable | 30,343 | 534 |
| Other current assets (1) | 996,294 | 828,715 |
| Other financial receivables | 13,165 | 12,766 |
| Cash and cash equivalents | 524,819 | 605,713 |
| Total current assets | 3,260,785 | 3,147,944 |
| TOTAL ASSETS | 4,590,488 | 4,186,915 |
| (1) of which, client working capital accounts (Services) | 607,396 | 485,829 |
* According to IFRS but with joint ventures proportionately consolidated.
| LIABILITIES AND EQUITY (€ thousands) |
30/06/2014 | 31/12/2013 |
|---|---|---|
| Equity | ||
| Share capital | 270,215 | 267,883 |
| Additional paid-in capital | 1,037,015 | 1,039,347 |
| Treasury shares | ||
| Reserves and retained earnings | 212,427 | 204,746 |
| Net profit/(loss) for the period | 35,077 | 100,115 |
| Equity attributable to equity holders of the parent company | 1,554,734 | 1,612,091 |
| Non-controlling interests – minority interests | 22,655 | 20,703 |
| Total equity | 1,577,389 | 1,632,794 |
| Non-current liabilities | ||
| Long-term loans and borrowings | 590,464 | 211,408 |
| Employee benefits | 28,112 | 25,868 |
| Deferred tax liabilities | 34,674 | 15,809 |
| Total non-current liabilities | 653,250 | 253,085 |
| Current liabilities | ||
| Short-term borrowings, financial and operating liabilities (1) | 154,441 | 155,015 |
| Current provisions | 90,775 | 94,821 |
| Trade and other payables | 670,333 | 746,068 |
| Current tax liabilities | 4,738 | 12,088 |
| Other current liabilities (2) | 1,439,562 | 1,293,044 |
| Total current liabilities | 2,359,849 | 2,301,036 |
| TOTAL LIABILITIES AND EQUITY | 4,590,488 | 4,186,915 |
| (1) of which, bank overdrafts | 21,542 | 25,956 |
| (2) of which, client working capital accounts (Services) | 607,396 | 485,829 |
* According to IFRS but with joint ventures proportionately consolidated.
| € millions | H1 2014 | H1 2013 | Change % |
|---|---|---|---|
| New homes | 651.9 | 700.5 | -6.9% |
| Subdivisions | 51.0 | 61.3 | -16.7% |
| International | 32.1 | 42.3 | -24.1% |
| Residential real estate | 735.1 | 804.1 | -8.6% |
| € millions | H1 2014 | H1 2013 | Change % |
|---|---|---|---|
| Commercial real estate | 104.8 | 244.5 | -57.1% |
| € millions | H1 2014 | H1 2013 | Change % |
|---|---|---|---|
| Services | 215.4 | 205.8 | 4.7% |
| Distribution Networks | 14.8 | 14.6 | 1.6% |
| Services and Distribution Networks | 230.2 | 220.4 | 4.5% |
| 2014 | 2013 | 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| € millions | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Residential real estate | 394.4 | 340.7 | 636.2 | 391.8 | 440.0 | 364.1 | 654.7 | 404.7 | 399.2 | 396.8 |
| Commercial real estate | 49.4 | 55.4 | 97.5 | 111.4 | 130.5 | 114.0 | 204.3 | 126.2 | 105.2 | 81.8 |
| Services and Distribution Networks | 123.6 | 106.6 | 115.2 | 109.9 | 113.0 | 107.4 | 120.0 | 112.8 | 112.1 | 107.8 |
| Other activities | 42.5 | 1.9 | 1.7 | 1.8 | 1.6 | 1.1 | 1.3 | 1.7 | 1.2 | 1.4 |
| Revenue | 610.0 | 504.6 | 850.6 | 614.9 | 685.2 | 586.5 | 980.2 | 645.6 | 617.6 | 587.9 |
* According to IFRS but with joint ventures proportionately consolidated.
| € millions | H1 2014 | H1 2013 | Change % |
|---|---|---|---|
| New homes | 59.2 | 59.5 | -0.5% |
| % of revenue | 9.1% | 8.5% | |
| Subdivisions | 2.3 | 5.0 | -55.1% |
| % of revenue | 4.4% | 8.2% | |
| International | (2.8) | (0.6) | na |
| Residential real estate | 58.6 | 63.9 | -8.3% |
| % of revenue | 8.0% | 8.0% |
| € millions | H1 2014 | H1 2013 | Change % |
|---|---|---|---|
| Commercial real estate | 13.2 | 23.5 | -44.0% |
| % of revenue | 12.6% | 9.6% |
| € millions | H1 2014 | H1 2013 | Change % |
|---|---|---|---|
| Services | 9.8 | 6.6 | 49.4% |
| % of revenue | 4.6% | 3.2% | |
| Distribution Networks | 1.2 | 1.0 | 20.2% |
| % of revenue | 8.2% | 7.0% | |
| Services and Distribution Networks | 11.0 | 7.6 | 45.5% |
| % of revenue | 4.8% | 3.4% |
| € millions | H1 2014 | H1 2013 | Change % |
|---|---|---|---|
| Other activities | (9.6) | (9.8) | ns |
* According to IFRS but with joint ventures proportionately consolidated.
| (€ thousands) | 30/06/2014 6 months |
30/06/2013 6 months restated * |
|---|---|---|
| Revenue | 977,641 | 1,172,738 |
| Purchases | (571,665) | (774,906) |
| Personnel costs Other operating expenses |
(215,508) (106,029) |
(206,861) (99,590) |
| Taxes other than income tax | (15,647) | (17,091) |
| Depreciation and amortisation | (8,615) | (7,210) |
| Operating profit/(loss) | 60,177 | 67,080 |
| Financial expense | ||
| Financial income | (9,039) | (7,845) |
| 3,108 | 6,065 | |
| Net financial income/(expense) | (5,931) | (1,780) |
| Pre-tax recurring profit | 54,246 | 65,300 |
| Corporate income tax | (25,418) | (28,201) |
| Share of profit/(loss) from equity-accounted associates | ||
| 8,241 | 9,989 | |
| Consolidated net profit/(loss) | 37,069 | 47,088 |
| Net profit/(loss) attributable to equity holders of the parent company | 35,077 | 45,053 |
| Net profit/(loss) attributable to non-controlling interests – minority interests | 1,992 | 2,035 |
* 2013 data have been restated to account for joint ventures in accordance with IFRS 11.
| ASSETS (€ thousands) |
30/06/2014 | 31/12/2013 restated * |
|---|---|---|
| Non-current assets | ||
| Goodwill | 1,061,857 | 917,147 |
| Other intangible assets | 62,642 | 45,299 |
| Property, plant and equipment | 40,188 | 24,615 |
| Equity-accounted investments | 55,689 | 64,906 |
| Other financial assets | 133,821 | 20,286 |
| Deferred tax assets | 4,454 | 3,677 |
| Total non-current assets | 1,358,651 | 1,075,930 |
| Current assets | ||
| Inventories and work in progress | 1,288,535 | 1,220,042 |
| Trade and other receivables | 291,105 | 305,761 |
| Tax accounts receivable | 32,496 | 413 |
| Other current assets | 963,742 | 793,095 |
| Other financial receivables | 81,681 | 89,555 |
| Cash and cash equivalents | 418,652 | 498,584 |
| Total current assets | 3,076,211 | 2,907,450 |
| TOTAL ASSETS | 4,434,862 | 3,983,380 |
| LIABILITIES AND EQUITY (€ thousands) |
30/06/2014 | 31/12/2013 restated * |
| Equity | ||
| Share capital | 270,215 | 267,883 |
| Additional paid-in capital | 1,037,015 | 1,039,347 |
| Treasury shares | ||
| Reserves and retained earnings | 212,426 | 204,746 |
| Net profit/(loss) for the period | 35,077 | 100,115 |
| Equity attributable to equity holders of the parent company | 1,554,733 | 1,612,091 |
| Non-controlling interests – minority interests | 22,655 | 20,703 |
| Total equity | 1,577,388 | 1,632,794 |
| Non-current liabilities | ||
| Long-term loans and borrowings | 590,464 | 211,408 |
| Employee benefits | 28,112 | 25,868 |
| Deferred tax liabilities | 21,847 | 3,917 |
| Total non-current liabilities | 640,423 | 241,193 |
| Current liabilities | ||
| Short-term borrowings, financial and operating liabilities | 150,937 | 125,699 |
| Current provisions | 89,569 | 93,368 |
| Trade and other payables | 634,488 | 705,539 |
| Current tax liabilities | 3,016 | 10,874 |
| Other current liabilities | 1,339,041 | 1,173,913 |
| Total current liabilities | 2,217,051 | 2,109,393 |
| TOTAL LIABILITIES AND EQUITY | 4,434,862 | 3,983,380 |
* 2013 data have been restated to account for joint ventures in accordance with IFRS 11.
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