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Nexity: Covid-19 impact, Shareholders’ meeting to go ahead on 19 May 2020 and 2019 dividend confirmed but reduced to €2 per share

 Paris, Tuesday 7 April 2020, 7:45am CETOn Monday 6 April 2020, Nexity’s Board of Directors met to consider the implications of the Covid-19 pandemic and to adopt the resolutions to be submitted for approval at the forthcoming Shareholders’ Meeting.As stated in its 20 March 2020 press release, Nexity has made rapid adjustments to its operating model to safeguard the continuity of its operations amid the crisis. The Group’s development business is currently operating at a very reduced level, and its reservations have fallen as a result of the lockdown measures, however most of its service businesses have reported resilient performance figures.It is too early to determine the impact that the crisis situation will have on Nexity’s 2020 accounts, and the main unknown is how long the lockdown will last. In the meantime, Nexity has suspended all its targets and outlook given to investors.The Group’s cash position remains very strong, with €767 million in total cash at 31 March 2020, plus €555 million in confirmed credit lines not drawn down.Nexity is supporting the wave of solidarity towards healthcare staff and victims of the coronavirus pandemic. The Group has immediately made available at no cost close to 300 homes in Studéa student residences for healthcare staff and vulnerable people designated by the public authorities. It has also decided to make an exceptional donation of €3 million to homeless charities and funds supporting healthcare staff.As a precautionary measure amid this public health emergency, Nexity’s Board of Directors has decided to call a Shareholders’ Meeting on the originally announced date of 19 May 2020 to be held exceptionally behind closed doors with none of its shareholders physically present.The preliminary notice of meeting (Avis de réunion préalable) will be published in the coming days in the legal gazette “Bulletin des Annonces Légales et Obligatoires” with all the instructions relating to the exercise of shareholder voting rights. Shareholders will be asked to vote by mail or by proxy. They should send any questions they may have, supported by a certificate of ownership for their shares, as swiftly as possible and no later than the fourth business day preceding the date of the General Meeting, i.e. on 13 May 2020, by 0:00 am (Paris Time) by registered letter with a request for acknowledgement of receipt or by email to : nexity-ag-2020@nexity.fr. Company’ answers will be incorporated into the minutes of the Shareholders’ Meeting, which will be published on its website at https://www.nexity.fr/en/group/finance/shareholders/shareholders-meetings.Nexity plans to arrange a forum event for its shareholders in the autumn as soon as the current restrictions have been dispelled.Furthermore, the Board of Directors, aware of the recommendation from stakeholders to soften dividend policies and concerned to create long-term value for its shareholders, has decided to trim the size of the dividend payment to be proposed at the Shareholders’ Meeting from €2.70 to €2.00 down 26% compared to what had been previously announced (and representing a 20% reduction compared to the dividend paid in 2019).In addition, Nexity has decided to rely on the state-sponsored unemployment scheme only in a selective and targeted fashion, and solely at the level of its operating companies whose worksites and projects have been forced to shut down. Where this occurs, Nexity will top up the payments received by the affected employees to the full amount of their normal salary for its employees receiving less than 3 times the minimum wage. Furthermore, employee profit-sharing will be paid, as planned, in May.Finally, Nexity welcomes the outsantding involvement and mobilisation of its teams during these challenging circumstances : fully dedicated to ensure business continuity, maintain relationships with our clients, suppliers and stakeholders, and taking care of our residents in student or senior residences operated by the Group. Health and safety of our employees, our clients and partners is obviously an absolute priority.Since Nexity addresses fundamental housing and workspace needs, it is ideally placed to plan ahead for the upturn in the real estate and construction market, to support its clients effectively and to play a full part in galvanising economic activity.Disclaimer
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 Section 2 of the Registration Document filed with the AMF under number D.19-0272 on 4 April 2019 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.
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