Kaufman & Broad SA · EURONEXT:KOF
Kaufman & Broad SA — 9M 2023 Earnings Presentation
31 slides from Kaufman & Broad SA's earnings presentation, Oct 3, 2023
Slide 1: Results for the first nine months of 2023 and outlook
Results for the first nine months of 2023 and outlook October 3, 2023
Slide 2: Solid development dynamic in the medium term
SOLID DEVELOPMENT DYNAMIC IN THE MEDIUM TERM > Housing land portfolio > Housing orders (Number of lots) (Number) (€ m value incl. VAT) 5,626 1,146 35,042 883 34,216 3,714 720 3,245 33,445 End August End August End August End August End August 9m 9m 9m 9m 9m 9m 9m 9m 9m 9m 2019 2020 2021 2022 2023 20
Slide 3: The housing market
The housing market A KAUFMAN = BROAD
Slide 4: Market: evolution of building permits and new housing starts
MARKET: EVOLUTION OF BUILDING PERMITS AND NEW HOUSING STARTS Volume of permits and housing starts Market (August 2003 to August 2023) (Cumulative over 12 months of the entire number of France excluding pure individual Housing accommodations and Mayotte not included) units 395 000 370 000 345 000 320
Slide 5: Further decline in retail credit production
FURTHER DECLINE IN RETAIL CREDIT PRODUCTION > Number of loans granted, new housing market (base 100 in 2020) Average: 109 Source: Observatoire Crédit Logement/CSA Presentation of results for the first nine months 2023 - 3 October 2023 5
Slide 6: Further rising interest rates
FURTHER RISING INTEREST RATES > Real estate loans rate to individuals (%) Total Markets % 3.80% 4 3 2 1 Jan. Jan. August 2020 2022 2023 Source: Observatoire Crédit Logement/CSA Presentation of results for the first nine months 2023 - 3 October 2023 6
Slide 7: Further price growth in new housing
FURTHER PRICE GROWTH IN NEW HOUSING > FPI France Index – Price of new housing (Base 100 Q2 2015) 135 135 130 130 125 125 120 120 115 115 110 110 105 105 100 100 95 95 2015 2016 2017 2018 2 019 2020 2021 2022 2023 Source: FPI Presentation of results for the first nine months 2023 - 3 October 2023 7
Slide 8: Housing Activity
Housing Activity A KAUFMAN = BROAD
Slide 9: Volume orders: market vs. Kaufman & Broad
VOLUME ORDERS : MARKET vs. KAUFMAN & BROAD > Orders (number of lots) > YTD 9 months 9 months Dec As of August 2023 vs 9 months Dec As of August 2022 -12.6% -35.1% Market (Source: Adéquation) Kaufman & Broad Presentation of results for the first nine months 2023 - 3 October 2023 9
Slide 10: Housing orders: change in customers breakdown
HOUSING ORDERS: CHANGE IN CUSTOMERS BREAKDOWN > 9 m 2022 > 9 m 2023 By volume 6% 25% 17% 10% 12% 3,714 3,245 9% lots lots 48% 72% By Value 7% 9% 18% 28% 27% €883.5M €720.1M 10% 35% 66% Investors Pinel scheme First and second Blocks Excluding the Pinel scheme time buyers Presentation of results for t
Slide 11: Take-up period significantly lower than the market
TAKE-UP PERIOD SIGNIFICANTLY LOWER THAN THE MARKET > Take-up period over 12 months * For 2023, year on year estimate Q3 2022 - Q2 2023 Months Months Market Kaufman & Broad 20 20 18 18 16 16 14 14 12 Average: 11.8 months 12 10 10 8 8 6 Average: 5.6 months 6 4 4 2 2 2011 2012 2013 2014 2015 2016 2017
Slide 12: Put on sale: market vs. Kaufman & Broad
PUT ON SALE: MARKET vs. KAUFMAN & BROAD > Number of new housing for sale 9 months 2016 to 9 months 2023 (base 100 in 2016) 140 120 100 80 60 40 20 0 9M_2016 9M_2017 9M_2018 9M_2019 9M_2020 9M_2021 9M_2022* 9M_2023* Kaufman & Broad Market (Source: ECLN) (*) Adéquation data Presentation of results for
Slide 13: Development of the housing land portfolio
DEVELOPMENT OF THE HOUSING LAND PORTFOLIO > Housing land portfolio - Number of lots 35,594 35,034 35,042 34,216 33,445 End August End August End August End August End August 2019 2020 2021 2022 2023 ▪ Land reserve at the end of August 2023: ▪ > 6 years of activity ▪ 86 % (in lots) in areas stretched
Slide 14: Housing backlog more than 23 months of activity
HOUSING BACKLOG MORE THAN 23 MONTHS OF ACTIVITY > Housing Backlog €M, excl. VAT (Number of months of activity) 2,390 2,266 2,272 2,003 2,048 (28.7) (24.6) (23.9) (23.4) (17.9) End August End August End August End August End August 2019 2020 2021 2022 2023 Presentation of results for the first nine m
Slide 15: Property activity
Property activity A KAUFMAN = BROAD
Slide 16: Commercial property in figures
COMMERCIAL PROPERTY ON THE FIRST 9 MONTHS IN FIGURES €M 410.7 €M 24.5 €M 641.8 Excl. VAT incl. VAT excl. VAT of revenue Of orders De Backlog Vs €M 113.7 Vs €M 1048.7 Vs €M 29.7 (excl. VAT) 9m 2022 (excl. VAT) (incl. VAT) 9m 2022 at end August 2022 43,358 sq.m 246,876 sq.m 120,361 sq.m In On marketin
Slide 17: Austerlitz - a major construction site
AUSTERLITZ - A MAJOR CONSTRUCTION SITE FORWARD RECOGNITION OF THE REVENUES ACQUISITION AT ADVANCEMENT 2023 2024 2025 2026 2027 Signature agreements Deliveries VEFA/CPI Projected recognition of Revenues for: Period 40% 10% 20% 17% 13% Cumul. 40% 50% 70% 87% 100% Presentation of results for the first
Slide 18: Financial results
Financial results A KAUFMAN = BROAD
Slide 19: Revenue breakdown
REVENUE BREAKDOWN €1 083.9M housing units €885.8M (Flats, houses, managed housing residences) units Q3 61.2% €283.5M €663.1M vs. €763.2M housing units 86.2% Commercial Property Commercial (Offices, retail and logistics) property H1 37.9% €605.8M €410.7M vs. €113.7M Commercial property 12.8% 1.0% 0.9
Slide 20: From revenue to operating income
FROM REVENUE TO OPERATING INCOME > In millions of euros 1,083.9 (+22.4%) (890.3) 193.6 (+24.9%) 86.4 17.9% of (107.2) (+35.8%) rev. 8.0% of rev. Revenue cost of Gross Current Current sales margin operating operating expenses income Presentation of results for the first nine months 2023 - 3 October 2
Slide 21: Operating margin
OPERATING MARGIN > Current Operating Margin (In% of revenues) 8.0% 7.4% 7.2% 9 m 2021 9 m 2022 9 m 2023 Presentation of results for the first nine months 2023 - 3 October 2023 21
Slide 22: From operating income to net income
FROM OPERATING INCOME TO NET INCOME > In millions of euros 86.4 (+35.8%) (11.4) (18.6) 57.1 0.8 (+26.2%) (11.6) 45.5 (+42.5%) 8.0% of rev. 4.2% of rev. Current Net Cost of Taxes Share of profit Consolidated Minority Attributable operating Financial Debt from equity net Income interest net income inc
Slide 23: Change in working capital requirement
CHANGE IN WORKING CAPITAL REQUIREMENT > In millions of euros ( As% of revenues) 201.8 199.5 204.1 174.6 18.3% * 16.0% 14.3% 11.7% * 50.6 3.1% 24.7 1.6% -4.1% -62.7 August August August August Feb. May August 2019 2020 2021 2022 2023 2023 2023 * Restatement taking into account the change in interpret
Slide 24: Consolidated balance sheet at 31 August 2023
CONSOLIDATED BALANCE SHEET AT 31 AUGUST 2023 > In millions of euros ASSET LIABILITY Non current liabilities 259.9 252.0 Shareholders' equity 62.7 Working Capital Requirement Net cash position (Excluding IFRS 16 and Put 201.2 99.9 Non-current liability Néorésid lease debt) IFRS 16 rental debt (€42.8M
Slide 25: Financial structure
FINANCIAL STRUCTURE In € millions 31 August 2023 30Nov 30 Nov2022 2022 Shareholders' equity 252.0 257.8 256.4 Financial debt * 214.1 214.3 214.3 O/w financial debt < 1 year (excluding IFRS 16) 54.7 5.9 5.9 O/w financial debt > 1 year (excluding IFRS 16) 116.8 166.6 166.6 O/w IFRS 16 lease debt 42.6
Slide 26: Changes in equity and net financial debt
CHANGES IN EQUITY AND NET FINANCIAL DEBT > In millions of euros 257.9 252.0 234.8 99.3 28.0 (201.2) End August 2021 End August 2022 End August 2023 Consolidated Net financial debt/(Net cash and cash equity equivalents) excluding IFRS 16 and Put Néoresid lease debt Presentation of results for the fir
Slide 27: Investment grade rating confirmed by Fitch Rating
COMPANY INVESTMENT GRADE RATING CONFIRMED BY FITCH RATING ▪ Fitch rating confirms the rating of Kaufman & Broad S.A " investment grade " BBB- with stable outlook. ▪ Fitch reaffirms Kaufman & Broad's strong business model, including its ability to preserve margins and generate cash flow in a subdued
Slide 28: Outlook
Outlook A KAUFMAN = BROAD
Slide 29: Buyback of its own shares
BUYBACK OF ITS OWN SHARES ▪ As part of its share buyback program, Kaufman & Broad concluded on 5 September 2023 an acquisition contract for a block of 1,251,000 shares of the Company held by Artimus Participations, a company bringing together managers and former managers of the Company, representing
Slide 30: Outlook for full year 2023
Outlook ▪ For the full year 2023: ▪ We expect group net income to grow by c. 20%, ▪ The underlying EBIT rate should be around 8%, ▪ Sales are expected to grow by 6 to 10%, ▪ In addition, the positive net cash position(1)is expected to be above the 50 million euros mentioned last July. (1) Excluding
Slide 31: 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