Investors
knowledge

2015 Annual Results

2015 Annual Results

“The results for fiscal year 2015 are in line with our expectations. They confirm the soundness of the development strategy introduced in 2014 and which has resulted in two years of growth in property sales and development indicators, in a mixed market. In Housing, the 17.5% rise in orders by volume compared to 2014 confirms the relevance of our price/product positioning. The 9% increase in overall backlog and the 6.6% increase in the land stock demonstrate our ability to grow our commercial offer. The share of private investors' orders by value increased nearly 25% compared to 2014, boosted by a favourable financial and tax environment. In the Commerical property sector, Kaufman & Broad, which launched design studies for the A7A8 project (about 70,000 sq. m) in the Paris Rive Gauche development, is now recognized as a major player. The acquisition of Concerto, at the beginning of the year, marks its entry into a buoyant logistics market and confirmed its status as an all-round real estate developer. Our operating results have been achieved while generating a strong level of profitability. The financial structure continues to grow stronger, mainly thanks to the effective management of our working capital requirement. For the full year 2016, the increase in the volume of the new real estate market is expected to settle at about 5%, fuelled, in particular, by interest rates staying at attractive levels and a stable price environment. Demand, which is still present, will be driven by a favorable tax system which is stable and based on incentives. On one hand, private investors will continue to benefit from the Pinel incentive which showed its effectiveness in 2015 and, on the other hand, the new zero interest rate (PTZ) lending solution will strengthen the creditworthiness of first-time homebuyers, who continue to show very high demand. The company's business should therefore be on an upward trend in 2016 and the financial indicators (revenue and gross margin) are expected to be in marked increase. In this context, a proposal will be made to the Board of Directors meeting on February 16, regarding the payment of an interim dividend of € 1.85 per share. Finally, the announcement by Financière Gaillon of its intention to initiate the disposal of its equity interest in Kaufman & Broad is an additional opportunity to accelerate our growth by increasing the involvement of our teams in the company's equity capital. Indeed, concurrently with this transaction, the employees and management of Kaufman & Broad are expected to raise their stake in the capital of their company to around 5% in the long term. This alignment of interests between the shareholders, with a broaden free float and improved shares liquidity, and the employees on the frontline, driving the performance of Kaufman & Broad, underlines our confidence in the future. The commercial and financial performance over the past few years is witness to our current development dynamic. In the medium term, Kaufman & Broad is expected to confirm this momentum and strengthen its leadership throughout the country by combining what is considered a premium brand with the professional expertise of its teams.”

Nordine Hachemi

Chairman and Chief Executive Officer

KPI

Revenues

(in € millions)

Revenues

Net Financial Debt

(in € millions)

Net Financial Debt

Working capital Requirement

(in € millions and as a percentage of revenues)

Working capital Requirement

Current operating income

(in € millions)

Current operating income

Free cash flow

(in € millions)

Free cash flow

Financial Capacity

(in € millions)

Financial Capacity

Breakdown of capital

(at November 30, 2014)

Breakdown of capital

Voting rights

(at November 30, 2014)

Voting rights

Trading data 2014

Share data (in euros)

Stock exchange

NYSE Euronext

ISIN code

FR 000 4007813

High

€ 31,17

Low

€ 23,60

As of december 31, 2015

€ 27,80

Shares outstanding as of december 31, 2015

21.584.658

Market capitalization as of december 31, 2015 (in euro millions)

€ millions 600.1

Average daily trading volume (from january 1 to december 31, 2015)

€ 24.461

Share data

Stock Exchange NYSE Euronext

Compartiment B Mid-caps

Indices CAC 40 et CAC ALL TRADABLE

ISIN code

FR 000 4007813