Nexity : 9M 2016 business activity and revenue

• Residential real estate: 10,692 new home reservations1in France at 30 September 2016, up 42% in volume and 33% in value compared to the first 9 months of 2015

  • Ona like-for-like basis, 10,397 new home reservations in France at 30 September 2016, up 39% in volume and 30% in value

• Commercial real estate: €248 million in orders at end-September 2016

• Group backlog: up 13.5%, reaching a record €3.7 billion, i.e. 18 months' revenue from development activities2

• Revenue: €2,019 million at 30 September 2016(stable)

  Acquisitions and partnerships:

• Successfulstart of the tie-up with Edouard Denis, consolidated since 1 July 2016 within the Group's Residential real estate division

• Majority stake acquired in Primosud (finalised on 14 October2016)

• Strategicpartnership announced with Ӕgide-Domitys3,the French market leader for serviced senior residences (Nexity's stake raised from 38.15% to 45.15% of the share capital)

  Outlook for 2016:
• Nexity'snew home reservations growth outlook revised upward, now expected to outperform4the French market (estimated growth of 15-20%, with around 120,000 reservations for 2016)

• Commercial real estate order intake: at least €250million

• 2016 revenue: stable, around €3billion

• 2016 current operating profit target: at least €245million

• Proposed renewal of a €2.20 per share dividend in20175

The indicators and financial data, including forward-looking information, used in this press release are based on Nexity's operational reporting, with joint ventures proportionately consolidated.

1 All figures for new home reservations are net of cancellations

2 Revenue basis: previous 12-month period - Exclusive of Edouard Denis

3 Press release of 26 October 2016

4 Growth in Nexity's reservations previously expected to be in line with market growth

5 Pending decision of Nexity's Board of Directors and approval at the Shareholders' Meeting

"The French residential market has maintained its strong momentum, driven by very low interest rates, effective housing stimulus measures and a growing appetite in France for property. Since the beginning of 2016, Nexity has roundly outperformed the market thanks to its effective sales organisation and its strong presence in areas where demand is highest (such as Greater Paris, reduced-VAT home sales and serviced residences). In 2016, Nexity's market share should reach its highest level ever - around 12.5%, which is a market gain of about 100 basis point. Our outlook remains positive, subject to the uncertainty surrounding the timing of future interest rate hikes. It is still too early to speculate on the upcoming presidential election's potential consequences on housing policy, but we do not expect any fundamental change to take place.

In commercial real estate, where market conditions are also favourable, Nexity delivered strong sales performance, and will beat its initial target of €250 million in order intake.

With a backlog up 13% over the first nine months of the year, Nexity confirms its organic growth potential. This was boosted by external growth: the majority stake acquired in Edouard Denis represents an important addition to the group, and the partnership is progressing in a highly satisfactory manner. The strategic partnership with Ægide- Domitys, announced today, will enable Nexity to add a new business line to its integrated real estate services platform, focused on serviced residences and personal assistance services, which will be a growth driver in the future."

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The retail market for new homes in France is expected to see growth of between 15% and 20% for 2016 (i.e. around 120,000 reservations6), boosted by historically low mortgage rates (1.41%7on average in the third quarter of 2016).

Reservations (units and €m) New homes (France) Subdivisions

International

Total reservations (number of units)

New homes (France) Subdivisions

International

Total reservations (€m incl. VAT)

• Including 295 net reservations for Edouard Denis representing €48 million incl. VAT

  9M 2015 Change %

  * 7,504+42.5%

  1,277 +16.8%

  159 x 2.1

  8,940 +40.1%

  * 1,483 +33.2%

  97 +13.1%

  22 x 2.6

  1,602 +33.7%

  • Newhomes

At end-September 2016, the Group recorded 10,692 net new home reservations in France, up 42% by volume and 33% by value (€1,974 million) year-on-year.

On a like-for-like basis, at 30 September 2016, net new home reservations in France were up 39% in volume (10,397 reservations) and 30% in value (€1,927 million) with respect to 30 September 2015. At end-September 2016, the disparity observed between the increase in the number of reservations and the increase in expected revenue from reservations is mainly due to the lower average price of bulk sales (down 11% with respect to the same period in 2015) and to an unfavourable product mix effect on retail sales (see the "Average sale price & floor area" table below).

In the third quarter of 2016, net new home reservations in France increased by 53% in volume and 41% in value year-on-year (41% and 31%, respectively, on a like-for-like basis).

Breakdown of new home reservations by client

France (number of units) - Exclusive of Edouard Denis

9M 2015 Change %

6 Reference market: ECLN (a French survey of new homes sales) published by the Commissariat Général au Développement Durable (CGDD)

7 Source: Observatoire Crédit Logement

The first nine months of financial year 2016 saw continued growth across all client segments. On a like-for-like basis:

• Reservations made by first-time buyers were up 44% with respect to the first nine months of 2015, still boosted by the new PTZ interest-free loan scheme, which took effect on 1 January 2016. At end-September 2016, 63% of Nexity's first-time buyer clients had a PTZ interest-free loan;

• Reservations by individual investors also surged in the first nine months of 2016 (up 34% year-on-year), driven by appealing government stimulus measures for the housing sector, very low interest rates and a growing appetite in France for property. This trend should continue, especially following the French government's announcement that the Pinel scheme will be extended until the end of 2017;

• Reservations by professional landlords were up 41%, with an increase in the share of reservations made by social housing operators (84% at end-September 2016, versus 68% at end-September 2015); and

• In terms of geographic distribution, reservations made in the first nine months of the year increased in both the Paris region (up 43%) and the rest of France (up 36%). As in the first half of 2016, the increase in reservations by individual clients was more pronounced in the Paris region (up 52%) than in the rest of France (up 30%).

At end-September 2016, the average price of homes reserved by Nexity's individual clients8was down 1.7% with respect to end-September 2015, due to changes in the product mix (reservations in serviced residences - which concern smaller units with a lower average sale price - increased by 53% during the period - up 80% including bulk sales9) and the proportion of reservations located in 5.5% reduced-VAT zones (which made up 19% of reservations

at end-September 2016 with 1,440 units versus 17% at end-September 2015 with 907 units - a 59% increase in volume).

In the first nine months of 2016, the number of units launched10by Nexity rose by 22% (10,683 units, versus 8,778 units at end-September 2015), in line with the growth in reservations. The unsold completed stock of new residential units remained very low (78 homes). The average level of pre-selling recorded at the time construction work was started increased year-on-year (72% on average, versus 68% the previous year).

At end-September 2016, the business potential11for new homes totalled 36,386 units, up 10% from end-September 2015, illustrating Nexity's capacity to replenish its potential supply.

8 Excluding bulk sales to professional landlords, and Iselection, PERL and Edouard Denis reservations

9 2,374 reservations in serviced residences in 9M 2016 versus 1,316 reservations in 9M 2015 (including bulk sales)

10 Sales data now include PERL and Iselection, and are presented exclusive of Edouard Denis. Data for 2015 have been restated in the same way to facilitate comparison between the two financial years

11 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 - Exclusive of Edouard Denis