2015 FIRST HALF RESULTS

Transcription

1 Press release Paris, July 8, FIRST HALF RESULTS New increase in orders in value: +23.6% in the first half of 2015 following +32.1% throughout 2014 Confirmation of the reassuring nature of the new tax incentives Key sales activity items - Orders in value including Commercial property Services segment: 663.2M (including VAT), +23.6% vs H Housing orders: 3,030 housing units, +16.5% vs H Key financial items - Revenues: 465.3M vs 426.6M in H Gross margin: 88.2M vs 80.9M in H Attributable net income: 12.0M vs 11.2M in H Net cash position: 26.9M vs 2.1M at end-2014 Key growth indicators - Total backlog: 1,262.6M (+19.5% vs H1 2014) including Housing: 1,074.5M (+6.7% vs H1 2014) - Housing property portfolio: 20,236 lots (+14.4% vs end-2014) Today, Kaufman & Broad SA is announcing its results for the first half of fiscal year 2015 ended May 31, Nordine Hachemi, Chairman and Chief Executive Officer of Kaufman & Broad, made the following statement: Following an increase of 32.1% throughout 2014, orders in value in the Housing and Commercial property Services segments were up 23.6% in the first half of This is in line with the growth and marketing momentum, which Kaufman & Broad committed to two years ago. In Housing, the property portfolio increased by almost 14% compared to end-2014 and reached 20,236 lots. Driven by highly attractive interest rates and benefiting from reassuring tax incentives, the share of private investors in terms of orders in value totaled million excluding VAT, up 31.0% compared to the first half of The Commercial property Services segment in particular recorded the sale before completion of the 7,500 sq.m UNITED office building located in Clichy, in addition to a sale before completion contract with Saint-Brieuc Agglomération for the construction of the local authority s future inter-administrative center. Furthermore, developments continue on all of the 70,000 sq.m of office, retail and hotel space in the Paris Rive Gauche (Austerlitz) district awarded by tender at the start of the period. Finally, the subsidiary Concerto European Developer had a very active period, with the sale of 43,000 sq.m of logistics platforms. These transactions confirm Kaufman & Broad's capacity to design and develop major urban planning projects, in both Île-de-France and in the Regions. This operational performance was achieved while maintaining satisfactory profitability and improving the financial structure. We are on track to achieve the annual prospects for revenues and a gross margin comparable to those of 2014.

2 Sales activity - Housing segment In the first half of 2015, housing orders totaled 3,030 housing units, up 16.5% compared to the first half of In value, they recorded a rise of 5.2% and amounted to million (including VAT), this smaller increase is explained by the upper managed housing orders in the product mix compared to the 1 st half of Throughout the first half of 2015, 2,921 apartment units were ordered for a sum of million (including VAT), up 16.1% in volume and 6.8% in value. Orders for single-family homes in communities totaled 109 units, compared to 85 units in the first half of 2014 ( 21.4 million (including VAT) versus 27.9 million (including VAT) in the first half of 2014). Structure of the customer-base Throughout the first half of 2015, investors orders in value were up 9 points compared to the first half of 2014, representing 41% of the total (including 35% as part of the Pinel incentive). Orders from homebuyers were 36% including 24% from first-time homebuyers, and 12% from second-time homebuyers. The proportion of block orders remained stable (24% versus 25% in the first half of 2014). - Commercial property Services segment In the first half of 2015, the Services segment recorded orders of million (including VAT). Construction works are in progress on the YOU building (9,300 sq.m), located in the EcoQuartier - Île Seguin - Rives de Seine in Boulogne-Billancourt and sold before completion at end-2013 to Boursorama for its future headquarters. Kaufman & Broad also finalized the sale before completion of the 7,500 sq.m UNITED office building located in Clichy (92), to Amundi Immobilier on behalf of SCPI Rivoli Avenir Patrimoine and Edissimmo. Moreover, Kaufman & Broad and Saint-Brieuc Agglomération signed a sale before completion contract for the construction of the local authority's future inter-administrative center on the island of La Providence. This project involves three buildings with 8,775 sq.m in floor space and 126 parking spaces. Work on this services sector complex will begin in summer 2015, for delivery by early 2018 at the latest. Finally, concerning the logistics business, the subsidiary Concerto European Developer marketed 43,000 sq.m in logistics platforms. - Forward indicators of the sales and development activity At May 31, 2015, the Housing backlog amounted to 1,074.5 million (excluding VAT), i.e., close to 14 months of business. The Commercial property Services backlog amounted to million (excluding VAT). At end-may 2015, Kaufman & Broad had 187 housing programs on the market, representing 3,924 housing units, compared to 170 programs for 3,480 housing units at end-may The Housing property portfolio comprises 20,236 lots, representing potential revenues corresponding to over 3 years of business. It rose 13.7% compared to revenues at end-november /7

3 In the third quarter of 2015, the group plans to launch 12 new programs, seven of which are to be launched in Île-de-France representing 567 lots and 5 in the Regions representing 219 lots. Financial results - Operating activities Total revenues amounted to million (excluding VAT), up 9.1% compared to the first half of Housing revenues amounted to million (excluding VAT), compared to million (excluding VAT) in the first half of This corresponds to 88.9% of the group s revenues. Revenues from the Apartments business were up 4.6% compared to the first quarter of 2014 to million (excluding VAT). Revenues generated by the Single-family homes in communities segment totaled 26.7 million (excluding VAT), compared to 40.4 million (excluding VAT) in the first half of Revenues from the Commercial property Services segment totaled 48.7 million (excluding VAT) in the first half of Other businesses generated 3.1 million (excluding VAT), remaining stable compared to the first half of Profitability indicators Gross margin totaled 88.2 million compared to 80.9 million in the first half of The gross margin rate was 19.0%, at a level comparable to the 18.7% recorded for the same period in Current operating expenses amounted to 58.4 million (12.6% of revenues) versus 59.5 million in the first half of 2014 (13.9% of revenues). Current operating income totaled 29.8 million, compared to 21.4 million in the first half of The current operating margin was 6.4% versus 5.0% in the first half of Attributable net income was 12.0 million, up 6.9% compared to the first half of 2014 ( 11.2 million). - Financial structure and liquidity Net financial debt was reduced by 71.0 million compared to end-may 2014 and, accordingly, net cash flow was 26.9 million at May 31, Cash assets (available cash and investment securities) totaled million, compared to million at November 30, Working capital requirement totaled 91.3 million (8.1% of revenues over 12 months rolling), compared to million at November 30, 2014 (10.0% of revenues). Finally, it is reminded that the balance of the dividend of 1.36 for fiscal year 2014, i.e., 0.68 per share, will be paid on July 22, 2015, representing a total amount approximately of 14.0 million. 3/7

4 This press release is available from the website Next regular publication date: September 30, 2015: 2015 third quarter results (after market close) Chief Finance Officer Bruno Coche +33 (1) Contacts Press Relations Camille Petit Burson-Marsteller +33 (1) About Kaufman & Broad - For more than 40 years, Kaufman & Broad has been designing, building and selling single-family homes in communities, apartments and offices on behalf of third parties. Kaufman & Broad is a leading French property builder and developer measured by its size, earnings and the strength of its brand. Warning: This document contains forward-looking information. This information is liable to be affected by known or unknown factors that KBSA cannot easily control or forecast, which may render the results materially different from those stated, implied or projected by the company. These risks specifically include those listed under Risk Factors in the Registration Document filed with the AMF on March 31, 2015 under number D Glossary Housing segment: covers the development of Single-family homes in communities (grouped homes), Apartments (including mixed-use buildings containing apartments/business premises/retail space/offices), corporate, tourist and student housing. Commercial property Services segment: includes real estate property/office, business premise (excluding small areas, in particular building ground floors), hotel and logistics activities. Orders: measured in volume (Units) and in value, orders reflect the group s sales activity. Orders are recognized in revenue based on the time necessary for the conversion of an order into a signed and notarized deed, which is the point at which income is generated. In addition, for apartment programs that include mixed-use buildings (apartments/business premises/retail space/offices), all floor space is converted into housing equivalents. Units: Units are used to define the number of housing units or equivalent housing units (for mixed programs) of any given program. The number of equivalent housing units is calculated as a ratio of the surface area by type (business premises/retail space/offices) to the average surface area of the housing units previously obtained. EHU: EHUs (Equivalent Housing Units delivered) directly reflect sales. The number of EHUs is a function of multiplying (i) the number of housing units of a given program for which notarized sales deeds have been signed by (ii) the ratio between the group s property expenses and construction expenses incurred on said program and the total expense budget for said program. Take-up rate: the number of orders in relation to the average commercial offer for the period. Commercial offer: the total inventory of properties available for sale as of the relevant date, i.e., all unordered housing units as of such date (less the programs that have not entered the marketing phase). Gross margin: corresponds to revenues less cost of sales. Cost of sales consists of the price of land, the related property costs and construction costs. Backlog: a summary at any given moment used for forecasting future revenues for the coming months. Property portfolio: all real estate for which a deed or contract of sale has been signed. 4/7

5 APPENDICES Financial data Key consolidated data In thousands H H restated ** Revenues 465, ,567 of which Housing 413, ,028 of which Commercial property Services 48,654 12,998 of which Other 3,115 3,542 Gross margin 88,175 80,917 Gross margin rate (%) 19.0% 19.0% Current operating income 29,763 21,424 Current operating margin (%) 6.4% 5.0% Attributable net income 12,005 11,229 Attributable net income per share ( /share) * * Based on the number of shares composing the capital of Kaufman & Broad SA, i.e., 21,584,658 shares. ** Financial statements restated following a change in accounting method: recognition under operating expenses of the marketing costs of sales offices and model areas previously recognized under cost of sales. Consolidated income statement* In thousands H H restated ** Revenues 465, ,567 Cost of sales (377,080) (345,650) Gross margin 88,175 80,917 Selling expenses (14,567) (14,593) Administrative expenses (26,902) (25,542) Technical and customer service expenses (9,202) (9,338) Development and program expenses (7,741) (10,020) Current operating income 29,763 21,424 Other non-recurring income and expenses Operating income 29,763 21,559 Cost of net financial debt (811) 381 Other income and expenses - - Income tax (8,921) (6,052) Share of income (loss) of equity affiliates and joint ventures Income (loss) attributable to shareholders 20,774 16,581 Minority interests 8,769 5,352 Attributable net income 12,005 11,229 * Approved by the Board of Directors. Limited review procedures on the financial statements were made by the statutory auditors. The review report is being issued. ** Financial statements restated following a change in accounting method: recognition under operating expenses of the marketing costs of sales offices and model areas previously recognized under cost of sales. 5/7

6 Consolidated balance sheet* In thousands May 31, 2015 November 30, 2014 restated** ASSETS Goodwill 68,511 68,511 Intangible Assets 84,099 85,075 Property, plant and equipment 5,997 4,323 Equity affiliates and joint ventures 6,687 11,376 Other non-current financial assets 1,965 1,843 Non-current assets 167, ,127 Inventories 303, ,540 Accounts receivable 286, ,561 Other receivables 138, ,604 Cash and cash equivalents 170, ,993 Prepaid expenses 1,450 1,437 Current assets 900, ,135 TOTAL ASSETS 1,067,588 1,156,262 EQUITY AND LIABILITIES Authorized capital 5,612 5,612 Additional paid-in capital 185, ,410 Attributable net income 12,005 37,930 Attributable shareholders equity 202, ,952 Minority interests 10,934 8,667 Shareholders equity 213, ,621 Non-current provisions 21,917 21,485 Borrowings and other non-current financial liabilities (> 1 year) 131, ,815 Deferred tax liabilities 48,438 42,303 Non-current liabilities 201, ,603 Current provisions 1,139 2,168 Other current financial liabilities (< 1 year) 12,486 12,101 Accounts payable 564, ,202 Other payables 72, ,858 Deferred income 1,679 1,709 Current liabilities 652, ,038 TOTAL EQUITY AND LIABILITIES 1,067,588 1,156,262 * Approved by the Board of Directors. Limited review procedures on the financial statements were made by the statutory auditors. The review report is being issued. ** Financial statements restated following a change in accounting method: recognition under operating expenses of the marketing costs of sales offices and model areas previously recognized under cost of sales. 6/7

7 Operational data Housing Segment 1 st half st half 2014 Revenues ( m, excluding VAT) of which Apartments of which Single-family homes in communities Deliveries (EHUs) 2,537 2,470 of which Apartments 2,433 2,320 of which Single-family homes in communities Net orders (number) 3,030 2,601 of which Apartments 2,921 2,516 of which Single-family homes in communities Net orders ( m, including VAT) of which Apartments of which Single-family homes in communities Commercial offer at period end (number) 3,924 3,480 Backlog at period end In value ( m, excluding VAT) 1, , of which Apartments 1, of which Single-family homes in communities In months of business Property portfolio at period end 20,236 19,707 Commercial property Services 1 st half st half 2014 Revenues ( m, excluding VAT) Net orders ( m, including VAT) Backlog at period end ( m, excluding VAT) /7