Kaufman & Broad Sa · EURONEXT:KOF
Kaufman & Broad Sa — FY2023 Earnings Presentation
61 slides from Kaufman & Broad Sa's earnings presentation, Feb 1, 2024
Slide 1: Annual results 2023
annual results 2023 1st February 2024
Slide 2: Solid development momentum in the medium term
SOLID DEVELOPMENT MOMENTUM IN THE MEDIUM TERM > Housing land portfolio > Housing order (Number of lots) (Number) (€ m value incl. VAT) 8,222 1,709.0 1,433.8 34 009 34 069 6,214 5,332 1,079.4 33,090 End Nov. End Nov. End Nov. End Nov. End Nov. 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 20
Slide 3: The housing market
The housing market A KAUFMAN = BROAD
Slide 4: Annual needs of 518,000 new housing vs present production of 200,000
ANNUAL NEEDS OF 518,000 NEW HOUSING VS A PRESENT PRODUCTION OF ONLY 200,000 HOUSING UNITS ▪ Need to build or put back on the market 518,000 new homes per year between 2024 and 2040 to meet demand ▪ 38% of the total, i.e. nearly 200,000 housing units, in the form of social housing study by HTC (Habit
Slide 5: Changes in authorisations and new housing starts
CHANGES IN AUTHORISATIONS AND NEW HOUSING STARTS Source: SIT @ del- Dido - Ministry of Ecological Transition and Territorial Cohesion Presentation of 2023 annual results 5
Slide 6: Trends in bookings and commercial offer
TRENDS IN BOOKINGS AND COMMERCIAL OFFER ▪ Total number of new housing reserved and supply of housing (individuals and blocks) - net of cancellations Orders Assets 180 000 145 000 160 000 125 000 140 000 105 000 120 000 85 000 100 000 65 000 80 000 45 000 60 000 25 000 40 000 5 000 New housing orders
Slide 7: Growth of French metropolitan population vs housing orders
GROWTH OF FRENCH METROPOLITAN POPULATION AT JANUARY 1ER VS HOUSING ORDERS Population In millions Orders 70 68.2 Market +8.9 m 67.1 Thousands 66.4 64.6 65 120 62.7 100 60.5 -80 60 59.3 61.0 60.0 60 1995 2000 2005 2010 2015 2020 2024(e) Source: INSEE, ECLN, Adequacy Presentation of 2023 annual results
Slide 8: Trends in bookings vs home credit interest rates
TRENDS IN BOOKINGS VS HOME CREDIT INTEREST RATES ▪ Total number of new housing reserved and interest rates for new residential loans Interest Housing bill rates 7,0 140 000 6,0 120 000 ▪ In 2023: 5,0 100 000 ▪ Interest rates of nearly 3.5% 4,0 80 000 ▪ 60,000 housing orders 3,0 60 000 2,0 40 000 ▪ I
Slide 9: 10 years of regulatory changes
10 YEARS OF REGULATORY CHANGES « Our ambition must be to simplify to build more and to build faster." Francois Hollande, President of the republic. Toulouse, January 9th 2014 (*) ▪ Some new laws since 2014: • 2014 - Alur Law : reforms in renting, co ownership, rent control, etc. • 2014 - Pinel (Fren
Slide 10: 10 years of regulatory changes
10 YEARS OF REGULATORY CHANGES ▪ Some new laws since 2014: • 2018 - ELAN (Changes in Housing, Planning and Digital) : the DPE becomes opotent. Tertiary decree on the obligations of actions to reduce the consumption of final energy in buildings for tertiary use. RE2020. • 2019 - Denormandy Act : tax
Slide 11: Housing Activity
Housing Activity A KAUFMAN = BROAD
Slide 12: Commercial offer, housing on sale and bookings: market vs. Kaufman & Broad
COMMERCIAL OFFER, HOUSING ON SALE AND BOOKINGS: MARKET VS. KAUFMAN & BROAD > Commercial offer > Housing on Sale > Orders (number of lots) (number of lots) (number of lots) 12 m yoy 12 m yoy End Nov. 2023 vs Dec 22 Nov. 23 Dec 22 Nov. 23 End Nov. 2022 Vs Dec 21 Nov. 22 Vs Dec 21 Nov. 22 -5% -13% -16%
Slide 13: Housing bookings: trend for customer breakdown
HOUSING BOOKINGS: TREND FOR CUSTOMER BREAKDOWN > FY 2022 > FY 2023 In volume 4% 21% 13% 9% 9% 6,214 5,332 10% lots Of which 25% lots Of which 22% in managed in managed 56% residences residences 78% in value 4% 24% 22% 9% 15% €1433.8 €1079.4 9% M Of which 22% in M Of which 13% managed in managed 45%
Slide 14: Significantly lower than market take up rate
SIGNIFICANTLY LOWER THAN MARKET TAKE UP RATE > Take up rate over 12 months 19.5 20,0 months Market Kaufman & Broad 18,0 16,0 14,0 9.8 12,0 months 4.1 x 10,0 8,0 1.6 x 6,0 6.3 4,0 months 4.8 mo 2,0 nths - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023* * For 2023, year on year estim
Slide 15: Development of the housing land portfolio
DEVELOPMENT OF THE HOUSING LAND PORTFOLIO > Housing land portfolio - Number of lots 35,086 35,149 34,069 34,009 33,090 End Nov. End Nov. End Nov. End Nov. End Nov. 2019 2020 2021 2022 2023 ▪ Land reserve at end Nov. 2023: ▪ > 6 years of activity ▪ 88 % (in lots) in areas stretched ▪ Selectivity stre
Slide 16: Backlog housing more than 25 months of activity
BACKLOG HOUSING MORE THAN 25 MONTHS OF ACTIVITY > Backlog Housing € m, excl. vat (Number of months of activity) 2,383 2,385 2,363 2,069 2,053 29.7 (25.8) 24.6 (25.7) (18.4) End Nov. End Nov. End Nov. End Nov. End Nov. 2019 2020 2021 2022 2023 Presentation of 2023 annual results 16
Slide 17: Urban development and renewal policy
Urban development and renewal policy
Slide 18: ~700,000 sq.m of wastelands in development
~ 700,000 SQ.M OF WATSELANDS IN DEVELOPMENT Before rehabilitation After Projects Rehabilitation ▪ Number of trees/shrubs: 5 1,700 *including: ▪ Vegetation (full earth): 8,755 Sq.m 12,663 Sq.m ”Reims" ▪ Surface of de-sealing area: 14,904 Sq.m Depolluted soils *including: ▪ Creation of a new ▪ 5 ha of
Slide 19: Converting office into housing
CONVERTING OFFICE INTO HOUSING ▪ Rising interest rates reveal the economic value of low occupancy real estate assets ▪ The transformation of offices into housing finally becomes economically realistic Estimated volume of - Geographical 1▪ ▪ 2 Analysis of available offers 3▪ property acquired for cer
Slide 20: Lille: residence hoteliere has a social vocation
LILLE: RESIDENCE HOTELIERE HAS A SOCIAL VOCATION ▪ Restructuring of old office building + construction of new building ▪ 182 rooms -5,645 Sq. m (building surface)SDP ▪ PC filed in July 2022 ▪ Clearance and demolition, maintenance of the post-and-beam superstructure, complete removal of the curtain w
Slide 21: Projects on the transformation of offices into housing
KAUFMAN & BROAD: PROJECTS ON THE TRANSFORMATION OF OFFICES INTO HOUSING ▪ Total area of 149,600 Sq. m ▪ Potential for 2,300 homes Presentation of 2023 annual results 21
Slide 22: Business Property
Business Property A KAUFMAN = BROAD
Slide 23: The commercial property market in 2023
THE COMMERCIAL PROPERTY MARKET IN 2023 ▪ Île-de-France ▪ Placed demand: -12% vs. 2022 ▪ Available offering: +10.4% vs. 2022 ▪ Vacancy rate: 8.4% (+1pt vs. 2022) ▪ Invested volumes: € 4.7 bn (-57% vs. 2022) ▪ Transactions > 5,000 Sq. m: 56 (-11% vs. 2022) ▪ Paris QCA: ▪ Placed demand: -13.4% vs. 2022
Slide 24: Kaufman & Broad business model reminder
KAUFMAN & BROAD BUSINESS MODEL REMINDER ▪ Execution on behalf of third parties only ▪ Projects are only launched once a buyer or buyer/user has been found ▪ Development of delegated project management business (MOD), remunerated in the form of management fees Presentation of 2023 annual results 24
Slide 25: Tertiary activity in FY 2023 in figures
TERTIARY ACTIVITY IN FY 2023 IN FIGURES €437.5M €33.7M 622.6 M € of Revenue Orders includ. VAT Backlog excl. VAT Vs €M 152.0 Vs €M 47.9 Vs €M1,030.5 (excl. VAT) in 2022 Incl.VAT in 2022 excl.VAT at end Nov. 2022 94,100 m ² 226,700 Sq.m 119,500 Sq. m In On marketing Under Construction Development Off
Slide 26: Paris VIIIth - Immeuble Potocki - 13,500 m2
Paris VIIIth - IMMEUBLE Potocki -13,500 m2 ▪ Kaufman & Broad, Deputy Delivery Master, and OSAE Partners, Investor Partner, awarded in June 2022 the call for tender by the CCI Ile de France for the rehabilitation of its historical headquarters of 13,500 Sq. m avenue de Friedland, partially classified
Slide 27: Marseille: Final campus of more than 30,000 sq. m
Marseille: Final campus of more than 30,000 SQ. m ▪ Latest generation tertiary campus, future EDF regional headquarters ▪ Depollution, remodelling of more than 3,700 m ² And the restoration of an old activity park ▪ PC filed in December 2023 ▪ BEFA EDF Group (around 29,000 Sq. m) ▪ BEFA Groupe STELL
Slide 28: Compiègne: Future Clésence scope - 4,400 sq. m
Compiègne: Future CLESENCE SCOPE - 4,400 Sq. m ▪ Intervention on a former office and business site, ▪ Sealing more than 1,800 Sq. m ▪ Definitive building permit obtained in October 2023 ▪ VEFA signed with "Clésence" in November 2023 ▪ Start of work in December 2023 ▪ Certifications: ▪ HQE 2016: Very
Slide 29: Austerlitz - a major construction site
AUSTERLITZ - A MAJOR CONSTRUCTION SITE FORECAST REVENUE RECOGNIZED USING THE PERCENTAGE-OF-COMPLETION METHOD 2023 2024 2025 2026 2027 Signature agreements Deliveries VEFA/CPI Actual cumulated Projected recognition of Revenues for: At 30/11/2023: Date 40% 10% 17% 19% 14% Cumul. 40% 50% 67% 86% 100 %
Slide 30: Austerlitz - progress of infrastructure works
AUSTERLITZ - PROGRESS OF INFRASTRUCTURE WORKS Earthworks in progress in the grip of the moulded wall Moulded wall comfort stoppers Presentation of 2023 annual results 30
Slide 31: Delivery urban logistics hotel - Petit Couronne (76)
DELIVERY URBAN LOGISTICS HOTEL - SMALL CROWN (76) ▪ Messaging of 6,600 Sq. m (2 cells) in the municipality of Petit Couronne, near Rouen (Seine Maritime) ▪ Vefa signed in May 2022 with a major logistics provider ▪ Crossing site for urban distribution logistics ▪ BREEAM GOOD certification ▪ Rooftop p
Slide 32: Logistics platform delivery - Montbeugny (03)
LOGISTICS PLATFORM DELIVERY - MONTBEUGNY (03) ▪ Logistics platform of 22,000 Sq. m (3 cells + auvent) in the town of Montbeugny, near Moulins (Allier) ▪ BEFA signed in May 2022 with a major logistics provider ▪ Vefa signed in June 2022 with an SCPI ▪ Site developed for industrial parts logistics (ro
Slide 33: Extra financial CSR results
Extra financial CSR results A KAUFMAN = BROAD
Slide 34: Environmental performance - scopes 1 and 2 trajectory
ENVIRONMENTAL PERFORMANCE - SCOPE 1 AND 2 TRAJECTORY * K & B carbon footprint assessment Scopes 1 and 2 ▪ Mobility action plan to reorient the trajectory of scopes 1 and Scope 3 2 with the carbon trajectory ▪ Trajectory KB SBTi scopes 1 and 2 1600 1400 1200 Objectif SBTi -2°C 1000 TCO2EQ 800 Objecti
Slide 35: Environmental performance - scope 3 trajectory
ENVIRONMENTAL PERFORMANCE - SCOPE 3 TRAJECTORY * K & B carbon footprint assessment Scopes 1 and 2 ▪ transactions designed and launched in line with the Scope 3 group's carbon trajectory ▪ Trajectory K & B scope 3 SBTi (TCO2eq related to m ² delivered) 2,000 1,800 Deliveries 2023 1,600 100% RT Land p
Slide 36: Environmental performance - delivery and design
ENVIRONMENTAL PERFORMANCE - SCOPE 3 TRAJECTORY * Delivery 2023 Design (EC 2023) ▪ Thermal/Environmental Performance (Housing) ▪ Main energy vector of operations (housing) Collective Gas Individual Gas Electricity PAC AA PAC AE Collective PAC AE Individual Heat network < 50% needs Heat network > 50%
Slide 37: Environmental performance - beyond 2030
ENVIRONMENTAL PERFORMANCE - SCOPE 3 TRAJECTORY * ▪ Beyond 2030... Materials with zero or negative carbon weight An ambition for energy neutrality ▪ Materials and components incorporating ▪ Electrification of vectors (especially air, biosourced by products and wastes from water and soil thermodynamic
Slide 38: European Taxonomy
EUROPEAN TAXONOMY ▪ Projects launched in production are largely in line with the European Taxonomy (substantial contribution Climate change) ▪ For the 2023 financial year: ▪ Revenues doubled aligned to the Mitigation and Estimated Adaptation criteria in 2023 : ▪ Around 27% ▪ Revenues aligned with th
Slide 39: Anticipation of CSRD
ANTICIPATION OF CSRD Corporate Sustainability Reporting Directive (CSRD) ▪ A dual materiality risk analysis ▪ 12 Standards (ESRS: European Sustainability Reporting Standards) ▪ About 1100 data points Cross-functional Environment Social Governance Standards General Principles Climate Change Human res
Slide 40: ESG ratings that favourably position Kaufman & Broad in its sector
ESG RATINGS THAT FAVOURABLY POSITION KAUFMAN & BROAD IN ITS SECTOR Climate Kaufman & Broad rated "A-", K&B methodology and in a «C » rated sector. target for reducing 2030 carbon intensity KBSA in the top "Leadership« Status validated by the SBTi. 17% worldwide Generalist: Environment, Social, Gover
Slide 41: Financial performance
Financial performance A KAUFMAN = BROAD
Slide 42: Revenue
Revenue: €1,409.1M €1,314.9M Housing (Flats, houses, managed Housing Housing residences) 87.7% 68.0% Q3 €283.5M €957.8M vs. €1,152.5M Commercial property (Offices, retail and logistics) H1 €605.8M €435.5M vs. €150.2M Commercial Commercial 31.0% 11.4% 0.9% * 1.0% * Others (Showroom, Service residence
Slide 43: From revenue to operating income
FROM REVENUE TO OPERATING INCOME In € millions 1,409.1 (+7.2%) (1,151.9) 257.2 (+12.7%) 109.3 18.3% of (147.9) (+11.3%) sales 7.8% of sales Revenue cost of Gross Current Operating sales margin operating income expenses Presentation of 2023 annual results 43
Slide 44: Operating margin
OPERATING MARGIN > Current Operating Margin (In% of revenue) 7.8% 7.7% 7.5% 2021 2022 2023 Presentation of 2023 annual results 44
Slide 45: From operating profit to net profit
FROM OPERATING PROFIT TO NET PROFIT In € millions 109.3 (+11.3%) (13.8) (19.9) 76.5 - 0.8 (+10.4%) (16.3) 60.2 (+22.7%) 7.8% of sales 4.3% of sales Operating Net Cost of Taxes Share of profit Profit Non- Attributable income Financial Debt from equity Consolidated controlling net income affiliates an
Slide 46: Change in working capital
CHANGE IN WORKING CAPITAL In € millions 190.0 150.1 14.5% 122.1 113.7 ( In% of revenue) 10.2% * 10.5% * 8.9% * 50.6 3.1% 24.7 1.6% -4.1% -5.7% -5.7% -62.7 -80.8 -80.8 Nov Nov Nov Nov Nov Feb. May Aug. Nov. 2019 2020 2021 2022 2023 2023 2023 2023 2023 * Restatement taking into account the change in i
Slide 47: Consolidated balance sheet at 30 November 2023
CONSOLIDATED BALANCE SHEET AT 30 NOVEMBER 2023 In € millions ASSET LIABILITY Non-current asset 265.4 234.5 Shareholders 'Equity 87.8 Non-current liability IFRS 16 rental debt (€39.3M) Net cash position (Excluding IFRS 16 and Put 180.5 43.0 and Put Néorésid (€3.7M) Néorésid lease debt) 80.8 Working C
Slide 48: Financial structure
FINANCIAL STRUCTURE In € millions Nov. 30, 2023 Nov. 30, 2022 30 Nov 2022 Shareholders' equity 234.5 256.3 257.8 Borrowings * 212.4 214.3 214.3 O/w financial debt < 1 year (excluding IFRS 16) 56.5 6.0 5.9 O/w financial debt > 1 year (excluding IFRS 16) 113.2 163.0 166.6 O/w IFRS 16 and Put Néorésid
Slide 49: Maturity of gross financial debt
MATURITY OF GROSS FINANCIAL DEBT Due May Due May Due April €169.7M 2024 2025 2030 €50 M €10 0M €19. 7M Gross financial debt at Nov. 30, 2023 " investment grade" - ‘BBB-” rating with stable outlook confirmed by Fitch Rating agency. (Excluding IFRS 16 and Put Neoresid) Fitch Rating notably mentions th
Slide 50: Changes in net financial debt over 12 months
CHANGES IN NET FINANCIAL DEBT OVER 12 MONTHS In € millions 113.3 Nearly €249M improvement in cash flow 67.8 (124.8) * End Nov. 2023 End Nov. 2022 (245.3) Cash Flow (137.6) 32.8 4.6 10.8 (180.5) * 82.5 Others Capex Taxes paid Change Share buyback in. WCR & dividends * Excluding IFRS 16 and Put Neores
Slide 51: Cash flow structure 2023
CASH FLOW STRUCTURE 2023 In € millions RESOURCES USES Shareholder returns 82.5 (dividends, share buyback) Organic result 129.4 43.2 Other (Investments, etc.) Change in Working Increase in resources Capital Requirement 245.3 249.0 350.0 374.7 374.7 101.0 Cash & Cash Cash & Cash equivalent equivalent
Slide 52: Consolidated ROCE change
CONSOLIDATED ROCE CHANGE In € millions 326.7 282.3 247.2 234.0 225.8 215.0 217.4 68,5% 103.0 39,7% 38,5% 24,4% 29,3% 16,7% 21,0% 19,2% 2016 2017 2018 2019 2020 2021 2022 2023 Average capital employed Operating profit after tax * ROCE * Operating profit after tax = (Operating profit - Interest expens
Slide 53: Changes in equity and net financial debt
CHANGES IN EQUITY AND NET FINANCIAL DEBT In € millions 293.1 275.4 267.7 257.8 234.5 67.8 35.9 (56.0) (62.5) (180.5) End End End End End Nov 2019 Nov 2020 Nov 2021 Nov 2022 Nov 2023 Shareholders Net financial debt/(Net cash and cash 'Equity equivalents) excluding IFRS 16 and Put Néoresid lease debt
Slide 54: Kaufman & Broad payout ratio (2016 - 2023)
KAUFMAN & BROAD PAYOUT RATIO (2016 - 2023) Attributable net Dividend Payout ratio income €M -80 70 60 50 Payout ratio 40 100% 30 Average: 76.2% 80% 60% 40% 2016 2017 2018 2019 2020 2021 2022 2023(*) * Proposed dividend of €2.40 per share submitted to the Shareholders' Meeting of May 6th, 2024 Presen
Slide 55: Outlook
Outlook A KAUFMAN = BROAD
Slide 56: Outlook
Outlook ▪ For Fiscal year 2024: ▪ Group’s Revenue are expected to be around 1.1 billion euros, with the deviation from 2023 explained by the strong base effect from the Austerlitz deal, ▪ Underlying operating profit is expected to be between 7% and 7.5% ▪ The group is expected to remain in a positiv
Slide 57: Appendices
APPENDICES A KAUFMAN = BROAD
Slide 58: Shareholder structure at 30 November 2023
SHAREHOLDER STRUCTURE AT 30 NOVEMBER 2023 Shareholder structure in number of shares 12,1% (Vs 7.1% at June3.2% 30, 2016, post Re IPO) 2,4% Kaufman & Broad employees Kaufman & Broad 8,9% Predica & Spirica 53,5% Rolloy Family Floating 23,1% Presentation of 2023 annual results 58
Slide 59: Upcoming publications
UPCOMING PUBLICATIONS URD Q1 2023 2024 March 29, 2024 : universal 9 April 2024 : publication of 1er Registration Document for 2023 quarter 2024 results H1 9M 2024 2024 July 11, 2024 : publication of the September 30, 2024 : publication 1er half year results of 2024 of the nine months result of 2024
Slide 60: Warning
WARNING Certain information contained in this document does not constitute historical data, but is forward looking. These forward looking statements are based on estimates, forecasts and assumptions in this included, in particular, assumptions regarding the present and future strategy of Kaufman & B
Slide 61: Evolution of cost estimates in the structural system
EVOLUTION OF 1 MONTH COST ESTIMATES IN THE STRUCTURAL SYSTEM ▪ Structural work in the building, estimate price at 1 months (CVS) Jan Jan Jan Jan Jan Jan Jan Jan Jan 2009 2011 2013 2015 2017 2019 2021 2023 2024 (e) Source: Banque de France Presentation of 2023 annual results 61