Press Release

Paris, January 27, 2016


2015 results in line with expectations; confirmation of the development momentum which began in 2014

  • 6.6% rise in land stock for Housing
  • 9.0% growth in overall Backlog
  • 17.5% increase in volume of orders for Housing units
  • ?6.0 million improvement in gross margin to ?202.7 million
  • Net income jumps 5% to ?39.8 million
  • Financial structure strengthened with net cash of ?27.7 million
  • Proposal submitted to the Board of Directors of February 16, 2016 for payment of an interim dividend of ?1.85 per share
  • 2016 outlook: with an unchanged economic environment, revenue and gross margin in 2016 are expected in marked increase

Plan by Financière Gaillon 8 to initiate the disposal of its equity stake in Kaufman & Broad, with employees and management acquiring a shareholding in the company

The Board of Directors of Kaufman & Broad SA duly approved the unaudited results for fiscal year 2015 (from December 1, 2014 to November 30, 2015). Commenting on these results, Nordine Hachemi, Chairman and Chief Executive Officer of Kaufman & Broad, stated, in particular:

“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.”

Sales activity

  • Housing segment

For the whole of the fiscal year 2015, orders for housing totaled 6,901 units, up 17.5% compared to the same period in 2014. In value, they recorded a rise of 7.4% and amounted to ?1,211.6 million (including VAT).

In 2015, orders were placed for 6,656 apartments (including 1,281 managed accommodations) for ?1,157.0 million (including VAT), representing an increase of 17.0% in volume and 7.2% in value. Orders for Single-family homes in communities totaled 245 units, compared with 184 units over the same period in 2014 (?54.6 million (including VAT) versus ?49.0 million (including VAT) in 2014).

  • Breakdown of the customer-base

In 2015, investors’ orders increased 23% in volume compared to the same period in 2014, representing 39% of the total (including 35% under the “Pinel” incentive). Orders from homebuyers accounted for 20%, broken down into 15% from first-time homebuyers, and 5% from second-time homebuyers. Block orders totaled 41% versus 34% at end-November 2014.

  • Commercial property segment

For the full year 2015, the Commercial property segment recorded ?154.4 million (including VAT) in orders.

Construction works continued on the “YOU” (9,300 sq.m) building in the EcoQuartier – Île Seguin – Rives de Seine, at Boulogne-Billancourt, the “UNITED” (7,500 sq.m) building in Clichy and the “A9B” (22,600 sq.m) building in the Paris Rive Gauche Mixed Development Zone, as it did on the future administration center for the municipality of Saint-Brieuc on the island of La Providence.

The design studies for the “A7A8” program (about 70,000 sq.m) in the Paris Rive Gauche began during the year, after the selection of Kaufman & Broad as winner of SEMAPA’s 2014 competition.

In the Logistics segment, 240,000 sq.m of logistics space is currently on the market. Construction works are in progress on the new Petit Bateau logistics platform (43,000 sq.m. in the Aube Logistics Park).

  • Indicators of sales and development activity

At November 30, 2015, the Housing units backlog totaled ?1,087.0 million (excluding VAT), i.e. more than 14 months of business. The Commercial property backlog totaled ?178.4 million (excluding VAT).

At end-November 2015, Kaufman & Broad had 162 housing programs on the market representing 3,092 housing units.

The land stock for Housing comprises 18,973 lots, i.e. potential revenues equivalent to more than three years of business. It is 6.6% higher than at end-November 2014.

Financial results

  • Operating activities

Total revenues totaled ?1,063.1 million (excluding VAT), down 1.9% compared to 2014.

Revenues from the Housing segment were up 4.1% to ?963.3 million (excluding VAT), compared to ?925.8 million (excluding VAT) in 2014. This represents 90.6% of the group’s revenues.

Revenues from the Apartments business were up 8.1% compared to 2014 to ?913.0 million (excluding VAT). Revenues from Single-family home in communities totaled ?50.4 million (excluding VAT), versus ?81.5 million (excluding VAT) at November 30, 2014.

Revenues from the Commercial property segment totaled ?93.9 million (excluding VAT) in 2015, compared to ?150.4 million (excluding VAT) over the same period in 2014. Other businesses generated revenues of ?5.8 million (excluding VAT).

  • Profitability highlights

The gross margin for 2015 totaled ?202.7 million compared to ?196.7 million in 2014. The gross margin rate was 19.1%, up by 0.9 percentage points compared to the same period in 2014, when it was 18.2%.

Current operating expenses for the fiscal year amounted to ?117.0 million (11.0% of revenues), versus ?123.0 million for the same period in 2014 (11.4% of revenues).

Current operating profit totaled ?85.7 million, compared to ?73.7 million in 2014. The current operating margin rate rose to 8.1% from 6.8% in 2014.

Attributable net income totaled ?39.8 million versus ?37.9 million in 2014.

  • Financial structure and liquidity

Net cash totaled ?27.7 million at November 30, 2015 (?2.1 million at November 30, 2014).

Cash assets (available cash and investment securities) totaled ?169.4 million, compared to ?150.0 million at November 30, 2014.

The working capital requirement totaled ?92.4 million (8.7% of revenues over a rolling 12 months), compared to ?108.4 million on November 30, 2014 (10.0% of revenues).

  • Proposed initiation of the sale by Financière Gaillon 8 S.A. of its stake in Kaufman & Broad

Financière Gaillon 8 S.A., the main shareholder of the Company, holding 87.95% of the share capital, has announced its intention to initiate the sale of its stake in Kaufman & Broad, potentially through an offer to the market, which could reduce its stake below 50% of the share capital.

Simultaneously with this contemplated offering, Kaufman & Broad intends to acquire a portion of the shares sold by Financière Gaillon 8 S.A. under and within the limits of its share buyback program, the renewal of which will be proposed at the next shareholders’ general meeting[1]. A group of employees and managers of Kaufman & Broad intend to increase their shareholding in the Company, in order to ultimately hold around 5% of the share capital.

In addition, given its net cash position of ?169.4 million as at 30 November 2015, Kaufman & Broad will propose to the annual general meeting of shareholders on April 13, 2016 the payment of an exceptional dividend (including an interim dividend of ?1.85 per share that will be paid in March 2016). The payment of this dividend would occur prior to the proposed sale.

Finally, Kaufman & Broad intends to refinance its bank debt in connection with this transaction.

An offer to the market would allow Kaufman & Broad to significantly broaden its free float and improve the liquidity of its shares.

Subject to favorable market conditions, the transaction could be completed during the first half of 2016.

This press release is available from the website

  • Next regular publication date:

March 29, 2016: Q1- 2016 results (after market close)

April 13, 2016: Annual Shareholders’ Meeting


Chief Financial Officer

Bruno Coche

+33 73
Press Relations
Camille Petit


+33 80
Jean-Baptiste Froville

Havas Paris


About Kaufman & Broad – For almost 50 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.

Disclaimer: 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.15-0258.

This announcement does not, and shall not, in any circumstances constitute a public offering, nor an offer to sell or to subscribe, nor a solicitation to offer to purchase or to subscribe securities in any jurisdiction.

No communication and no information in respect of the sale by Financière Gaillon 8 S.A. of Kaufman & Broad shares may be distributed to the public in any jurisdiction where a registration or approval is required. No steps have been taken in any jurisdiction where such steps would be required. The offer or sale of the Kaufman & Broad shares by Financière Gaillon 8 S.A. may be subject to specific legal or regulatory restrictions in certain jurisdictions. Financière Gaillon 8 S.A., Kaufman & Broad, their shareholders and their affiliates take no responsibility for any violation of any such restrictions by any person.


Housing segment: covers the promotion of Single-family homes in communities (grouped single-family homes), Apartments (which may include mixed apartments / business premises / retail space / office space), and corporate, tourist and student residences.

Commercial property segment: includes offices, retail (excluding small areas, building ground floors in particular), hotels and logistics businesses.

Orders: measured in volume (Units) and in value, orders reflect the group’s sales activity. Orders are recognized as 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 housing units available for sale at the relevant date, i.e., all unordered housing units at 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 the construction costs.

Backlog: also called an order book, is the summary which enables future revenues for the coming months to be forecast at any given moment.

Property portfolio: also known as the land stock, refers to all the land for which all commitments (contract for sale, etc.) have been signed.


  • Financial data

Key consolidated data

in ? thousands Q4
Fiscal 2015 Q4
Fiscal 2014**
Revenues 366.8 1,063.1 428.8 1,083.3
  • of which Housing
342.9 963.4 297.5 925.8
  • of which Commercial property
22.3 93.9 129.1 150.4
  • of which Other
1.6 5.8 2.2 7.2
Gross margin 70.5 202.7 72.6 196.7
Gross margin rate (%) 19.2% 19.1% 16.9% 18.2%
Current operating income 38.4 85.7 35.4 73.7
Current operating margin (%) 10.5% 8.1% 8.3% 6.8%
Attributable net income 20.3 39.8 18.8 37.9
Attributable net earnings per share (?/share) * 0.94 1.84 0.87 1.76
  • Based on the number of shares comprising the capital stock 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 show areas previously recognized under cost of sales.

Consolidated income statement*

in ? thousands Q4
Fiscal 2015 Q4
Fiscal 2014**
Revenues 366,816 1,063,098 428,830 1,083,342
Cost of sales (296,288) (860,397) (356,260) (886,628)
Gross margin 70,527 202,701 72,569 196,714
Selling expenses (9,785) (30,652) (10,933) (32,467)
General administrative expenses (11,246) (50,313) (15,713) (53,770)
Technical and customer service expenses (4,885) (18,310) (5,013) (18,375)
Development and program expenses (6,248) (17,740) (5,467) (18,437)
Current operating income 38,364 85,685 35,436 73,664
Other non-recurring income and expenses 831 826 (805) (673)
Operating income 39,195 86,511 34,630 72,991
Cost of net financial debt (3,115) (4,470) (656) (250)
Other income and expenses
Income tax (10,685) (24,267) (13,239) (25,026)
Share of income (loss) of equity affiliates and joint ventures 17 1,172 1,713 2,612
Income (loss) attributable to shareholders 25,411 58,946 22,448 50,327
Minority interests 5,115 19,167 3,697 12,397
Attributable net income 20,297 39,779 18,751 37,930

* Not approved by the Board of Directors and not audited.

** 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 balance sheet*

in ? thousands November 30, 2015 November 30, 2014 **
Goodwill 68,511 68,511
Intangible Assets 86,605 85,075
Property, plant and equipment 4,663 4,323
Equity affiliates and joint ventures 5,513 11,376
Other non-current financial assets 1,247 1,843
Non-current assets 166,539 171,127
Inventories 329,664 320,540
Accounts receivable 331,428 336,561
Other receivables 136,421 176,605
Cash and cash equivalents 169,361 149,993
Prepaid expenses 649 1,437
Current assets 967,523 985,135
TOTAL ASSETS 1,134,062 1,156,262
Capital stock 5,612 5,612
Additional paid-in capital 167,458 163,412
Attributable net income 39,779 37,930
Attributable shareholders’ equity 212,849 206,954
Minority interests 11,068 8,667
Shareholders’ equity 223,917 215,621
Non-current provisions 22,334 21,485
Borrowings and other non-current financial liabilities (> 1 year) 127,833 135,815
Deferred tax liabilities 40,268 42,303
Non-current liabilities 190,435 199,603
Current provisions 120 2,168
Other current financial liabilities (< 1 year) 13,840 12,101
Accounts payable 613,791 618,202
Other payables 85,412 95,482
Current tax 5,301 11,376
Deferred income 1,246 1,709
Current liabilities 719,710 741,038

* Not approved by the Board of Directors and not audited.

** Financial statements restated following a change in accounting method: recognition under operating expenses of the marketing costs of sales offices and show areas previously recognized under cost of sales.

Operational data

Housing Q4
Fiscal 2015 Q4
Fiscal 2014
Revenues (? M, excluding VAT) 342.9 963.4 297.5 925.8
  • of which Apartments
331.6 913.0 274.9 844.3
  • of which Single-family homes in communities
11.4 50.4 22.7 81.5
Deliveries (EHUs) 2,164 5,961 1,810 5,623
  • of which Apartments
2,108 5,748 1,714 5,303
  • of which Single-family homes in communities
56 213 96 320
Net orders (number) 2,470 6,901 1,921 5,871
  • of which Apartments
2,392 6,656 1,874 5,687
  • of which Single-family homes in communities
78 245 47 184
Net orders (? million, including VAT) 385.5 1,211.6 358.5 1,128.5
  • of which Apartments
369.9 1,157.0 351.6 1,079.5
  • of which Single-family homes in communities
15.6 54.6 6.9 49.0
Commercial offer at end of period (number) 3,092 3,484
Backlog at end of period
  • In value (? million, excluding VAT)
1,087.0 1,015.7
  • of which Apartments

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Kaufman & Broad SA : 2015 ANNUAL RESULTS (January 27, 2016)

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