REVENUE UP AND PROFITABILITY IMPROVING DESPITE THE CRISIS

HEXAOM HAS ONCE AGAIN PROVED THE RESILIENCE OF ITS BUSINESS MODEL AND ITS CAPACITY TO BOUNCE BACK

EXCELLENT SALES MOMENTUM FOR 2021

The Hexaom board of directors convened on March 24th, 2021, and approved the financial statements for the year ended December 31st, 2020. The consolidated financial statements were audited. The statutory auditors’ report will be issued when the annual report is published.

Annual revenue up +4.8%, all of the group’s businesses grew

As announced on February 4th, 2021, and despite the unprecedented global health and economic crisis, the Hexaom group posted a +4.8% increase in revenue over the year, to €881.8 million.

Most of this growth took place in the second half of the year, when there were fewer restrictions and the health crisis was under better control. Nonetheless, business remained resilient in the first part of the year and provided a springboard for growth later on. This growth is all the more remarkable in that all of the group’s businesses contributed to it.

The Home Building business was up slightly by +0.1% to €694.4 million. The Renovation business—which was severely impacted by the lockdown during the first half of the year—confirmed its renewed momentum with annual production reaching €153.3 million, i.e. an increase of +8.0% over the year and +20.3% in the second half alone. Finally, the Real Estate Development and Land Development businesses, up sharply to €23.6 million (compared to €2.1 million in 2019) and €10.8 million (compared to €4.0 million in 2019) respectively, continued their rapid development, mainly due to the ramp-up of Hibana and the full-year integration of the Plaire group.

Improved profitability and a solid financial structure

During the crisis, Hexaom was able to adapt quickly thanks to its resilient business model based on highly variable costs, the responsiveness of its decentralized business units in close contact with customers, and the exceptional commitment of its employees, rallying around the group’s strong values.

The result was an improvement in profitability, with the group’s operating income up +7.0% over the period to €29.1 million. The operating margin was 3.3% of revenue compared to 3.2% last year.

Operating income for the Home Building business amounted to €25.5 million, with a stable operating margin at 3.7%. The new businesses are also fulfilling on their promise of driving growth:

• After an exceptional rebound in activity in the second half of the year, particularly in the B2B sector where production almost tripled from one half-year to the next, the Renovation business posted a net improvement in its operating income for the year, at €2.7 million, representing an operating margin of 1.7%
• The Real Estate Development business broke even for the first time, in line with expectations
• The Land Development business generated €1 million in operating income for a margin of 9.6%, compared with 7.5% last year

Annual net income amounted to €19.7 million, up +6.5%, for a net margin of 2.2% and net earnings of €2.91 per share compared to €2.75 at the end of 2019.

The financial structure remains solid with the group share of equity amounting to €207.8 million and a cash position of €171.8 million. Net cash amounted to €29.5 million, down as anticipated compared to the end of 2019 due to the group’s acquisitions in 2020 and higher working capital requirements needed to grow the Real Estate Development business.

Order intake up sharply in the first two months of 2021:

• After recording a strong rebound in orders in the second half of 2020, thus limiting the year-over-year decline to -3.4% in value, the Home Building business was heading in the right direction during the first two months of 2021 with order intake up +4.5% in number and +7.9% in value. These figures also reflect the upward trend in the average selling price of €130,400, up +3.4% over the first two months of 2021 (after a +4.4% increase in 2020).
• For the Renovation business, order intake for the year amounted to €199.7 million, down slightly by 5.3% compared to the end of 2019. In the first two months of 2021, they amounted to €22 million, a remarkable increase of +244% compared to the same period of the previous year, largely driven by a record influx of B2B orders and despite a high base effect.
• Real Estate Development and Land Development continue to grow with an order backlog of €88.8 million and an order book of €25.5 million; both businesses were boosted by the integration of the Claimo group.

Outlook

Given the resilience of its business model, which has been severely tested by the economic and health crisis, the group’s ability to bounce back—as illustrated by its excellent results for 2020—and the positive momentum of its order intake during the first few months of the year, Hexaom expects to continue to grow in 2021. This growth, mainly driven by the group’s new businesses, should result in reaching target revenue of close to €1 billion at the end of 2021.

Hexaom reiterates its objective to strengthen its position as a major player in the housing market.

Resumption of dividend payment

In view of the group’s solid financial structure and robust fundamentals, the board of directors will propose, during the annual general meeting on May 27th, 2021, to distribute dividends of €1.17 per share.