Kaufman & Broad : 1st Quarter 2013 Results

  Kaufman & Broad : 1st Quarter 2013 Results

            (UNAUDITED AND NOT APPROVED BY THE BOARD OF DIRECTORS)

Business Wire

PARIS -- April 24, 2013

Regulatory News:

  *Stable sales activity overall

       *Total revenues: €205.0 million (excl. VAT) vs €215.3 million (excl.
         VAT) in Q12012
       *Housing orders in volume: 1,083 orders, +5.0%
       *Average monthly take-up rate of new programs: 31.9%

  *Unchanged gross margin rate and continued deleveraging

       *Gross margin rate: 19.2% vs 19.3% in Q1 2012
       *Net financial debt: €39.9 million vs €81.2 million at November 30,
         2012

  *Good outlook for future business

       *Property portfolio: 16,434 housing units, nearly three years of
         business
       *Housing backlog in value: €1,059 million (excl. VAT), nearly 13
         months ofbusiness

  *Outlook for 2013: continued solid financial performance in a challenging
    economy

Kaufman & Broad S.A. (Paris:KOF) today announces its results for the first
quarter of2013 (from December 1, 2012 to February 28, 2013).

Key consolidated data

                           1^st quarter   1^st quarter
(€ million)                                           Change
                           2013           2012
Revenues (excluding VAT)  205.0         215.3         -4.8%
Gross margin               39.3           41.5           -5.3%
Gross margin rate          19.2%          19.3%          -0.1pt
Current operating profit   13.2           14.2           -6.8%
Current operating margin   6.5%           6.6%           -0.1pt
Attributable net income   8.3           9.0           -7.9%

Commenting on these results, Guy Nafilyan, Chairman and Chief Executive
Officer of Kaufman & Broad S.A., stated: “In the first quarter of 2013, in a
more challenging economic environment, Kaufman&Broad saw orders grow by 5%
in volume while at the same time new program launches declined by more than
30% (11 new programs launched in2013 compared to 16 in 2012).

The average monthly take-up rate of new programs introduced during the first
quarter of 2013 was nearly 32%.

Financial indicators remain strong, with gross margin rate still unchanged and
at high levels and a continued decline of net financial debt, which has
decreased more than threefold in one year.

The property portfolio remained at a high level for nearly three years of
business, and backlog accounted for nearly 13 months of business.

As announced at the beginning of the year, Kaufman & Broad will keep
developing homes in 2013 that are designed for first-time buyers who can take
advantage of the new Zero-interest Plus Loan program and investors through the
new incentive that was implemented in January 2013. Moreover, Kaufman & Broad
will continue to grow by offering homes designed for students and seniors, who
continue to benefit from the Censi-Bouvard incentive.

As regards commercial property, Kaufman & Broad has filed in the first quarter
a building permit on a project in Boulogne-Billancourt and will file, during
2013, the building permits on three others projects in Île-de-France – all
large-scale – in Paris and Hauts-de-Seine. These four projects represent
approximately 62.000sq.m of office space.

Over the entire fiscal year 2013, Kaufman & Broad wants to keep its financial
performance at the same level as 2012 by bringing its operating expenses under
control and continuing to pay off its debt.”

  *Relatively stable total revenues

Total revenues for the first quarter of 2013 amounted to €205.0 million
(excluding VAT). Itwas €215.3 million (excluding VAT) in the first quarter of
2012.

Housing revenues, which represents 97.0% of total revenues, amounted to €198.7
million (excluding VAT) compared with €210.3 million (excluding VAT) in the
first quarter of 2012. Île-de-France share of Housing revenues was 41.8%.

Apartments revenues totaled €190.8 million. Single-family homes in communities
revenues came in at €8.0 million.
Over the same period, Commercial Property achieves revenues of €4.6 million
and Showroom revenues totaled €1.4 million.

Deliveries during the first quarter of 2013 were 1,117 equivalent home units
(EHUs), versus 1,151 EHUs in the same quarter of 2012.

  *Increase of Housing orders in volume

In the first quarter of 2013, housing orders  increased in volume by 5.0%
(1,083 housing units ordered). In value, they totaled €194.0million
(including VAT), down 5.7% compared to the first quarter of 2012. This decline
can be attributed for the most part to the decrease in average prices of
housing orders, which is in line with Kaufman & Broad’s strategy to adjust its
offer to market conditions.

Orders in Île-de-France accounted for 47.6% in volume and 52.8% in value for
all housing orders, compared to 42.9% and 45.9% for the first quarter of 2012.

Quarter on quarter, the share of orders from investors under the
Scellier/Duflot incentives declined from 32% to 21%, while block orders rose
from 19% to 26%.

Commercial offer totaled 2,888 housing units versus 2,838 housing units as of
February29, 2012.

The average monthly take-up rate of new programs launched during the first
quarter of 2013 was 31.9%, still at a high level.

  *Unchanged gross margin rate and current operating margin

Gross margin was €39.3 million, compared to €41.5 million in the first quarter
of 2012. Gross margin rate remained unchanged, at 19.2% compared to 19.3% in
the same quarter of 2012.

Current operating profit came to €13.2million. It accounted for 6.5%of
revenues in the first quarter of 2013 versus 6.6% in the first quarter of
2012. Current operating expenses expressed as a percentage of revenues
remained unchanged at 12.7%.

The cost of net financial debt showed financial income of €0.5 million
compared to financial expense of €0.8million in the first quarter of 2012.
This change of €1.3 million can be attributed for the most part to the decline
in the cost of hedging instruments.

Attributable net income came in at €8.3 million, compared with €9.0 million in
the first quarter of 2012, a decline of 7.9%.

  *Continued debt reduction

At February 28, 2013, cash and cash equivalents (available cash and investment
securities) totaled €195.3 million, an increase of €41.6million compared to
November 30, 2012.

Working capital requirements stood at €114.4 million at February 28, 2013 and
accounted for 11.2% of revenues based on a 12-month rolling period, versus
14.0% at end-November 2012.

Net financial debt declined by half compared to November 30, 2012 and totaled
€39.9 million. The continued deleveraging may be explained by good control
over working capital requirements resulting from the group’s selective policy
applied to the launching of new programs in the last eighteen months.

  *Continued positive outlook for future business

At February 28, 2013, the Housing property portfolio represented 16,434 lots,
of which 5,795 were in Île-de-France and 10,639 in the Regions, for potential
revenues corresponding to nearly three years of business.

The Housing backlog totaled €1,058.7 million (excluding VAT), versus €1,091.1
million (excluding VAT) at November 30, 2012, down 3.0%. It represents nearly
13 months of business for the group.

As of the same date, Kaufman & Broad had 157 housing programs on the market, 
of which 40 were in Île-de-France and 117 in the Regions, compared to 160
programs at February 29, 2012.

In the next quarter, the group expects to introduce 36 new programs
representing 1,714 housing units (16 new programs in Île-de-France,
representing 980 housing units, and 20 new programs in the Regions,
representing 734 housing units).

  *Next regular publication:2013 first-half results on July 12, 2013.

Glossary

Orders: measured in volume (Units) and in value, orders reflect the group’s
commercial 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, apartment
programs that include mixed-use buildings (apartments/business premises/retail
space/offices), all floor space is converted into housing equivalents.
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 the notarized sales deeds have been signed, by (ii)
the ratio between the group’s property expenses and construction expenses
incurred on the 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 date in question, i.e. all unordered housing units as of this 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 parcels, the related property costs and
construction costs.
Backlog: a summary at any given moment, which enables a forecast of future
revenues for the coming months.
Property portfolio: all real estate for which a deed or commitment to sell has
been signed.

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 in view of its size, earnings and power of its brand.

                            Website: www.ketb.com

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
under number D.13-0247 on April 2, 2013.

                             KAUFMAN & BROAD S.A.

                        Consolidated income statement*
                               (in € thousands)
            *Unaudited and not approved by the Board of Directors

                                                       Q1 2013    Q1 2012
Revenues                                                204,988    215,314
Cost of sales                                            (165,731)   (173,850)
Gross margin                                             39,256      41,464
Selling expenses                                         (6,567)     (6,365)
General and administrative expenses                      (14,485)    (15,691)
Technical and customer service expenses                  (4,700)     (3,978)
Other income and expenses                                (280)       (1,248)
Current operating profit                                 13,224      14,182
Other non-recurring income and expenses                  (7)         (2)
Operating income                                         13,217      14,180
Cost of net financial debt                               522         (808)
Other financial income and expenses                      -           850
Income tax (expenses)/income                             (3,118)     (2,359)
Share of income (loss) of equity affiliates and joint    211         (136)
ventures
Income attributable to shareholders                      10,832      11,727
Minority interest                                       2,523      2,709
Attributable net income                                 8,308      9,018
Earnings per share (€)                                  0.38       0.42

                             Kaufman & Broad S.A.

                         Consolidated balance sheet*
                               (in € thousands)
            *Unaudited and not approved by the Board of Directors

ASSETS                                          Feb. 28, 2013  Nov. 30, 2012
Goodwill                                        68,511         68,511
Intangible assets                                84,552          84,897
Property, plant and equipment                    5,772           5,604
Equity affiliates and joint ventures             7,319           4,373
Other non-current financial assets               1,294           1,262
Non-current assets                               167,448         164,647
Inventories                                      269,189         284,469
Accounts receivable                              247,838         268,189
Other receivables                                140,327         180,141
Cash and cash equivalents                        195,325         153,763
Prepaid expenses                                 1,485           1,008
Current assets                                  854,164        887,570
TOTAL ASSETS                                    1,021,612      1,052,217
                                                             
EQUITY AND LIABILITIES                          Feb. 28 2013   Nov. 30, 2012
Capital stock                                    5,612           5,612
Additional paid-in capital                       133,834         135,910
Interim dividends                                -               (48,455)
Attributable net income                          8,308           47,624
Attributable shareholders’ equity                147,754         140,691
Minority interest                                9,743           8,420
Shareholders’ equity                             157,497         149,111
Non-current provisions                           24,455          24,510
Borrowings and other non-current financial       234,702         234,535
liabilities (> 1 year)
Deferred tax liabilities                         59,648          55,586
Non-current liabilities                          318,805         314,631
Current provisions                               285             1,000
Other current financial liabilities (< 1 year)   541             458
Accounts payable                                 469,955         473,624
Other liabilities                                72,795          111,776
Deferred income                                  1,734           1,616
Current liabilities                             545,310        588,474
TOTAL EQUITY AND LIABILITIES                    1,021,612      1,052,217

                             Kaufman & Broad S.A.

                            Additional information

                                           Single-family homes in communities
                                          Q1 2013    Q1 2012      Q1 2011
Net orders (in units)                       58         41           9
Net orders (in € thousands, including       14,943      8,032         4,125
VAT)
Backlog (in € thousands, excluding VAT)     58,894      32,340        49,918
Backlog (in months of business) *           26.3        8.7           5.3
Deliveries (in EHUs)                       39         15           76
                                            
                                            Apartments
                                          Q1 2013    Q1 2012      Q1 2011
Net orders (in units)                       1,025       990           1,255
Net orders (in € thousands, including       179,086     197,689       272,243
VAT)
Backlog (in € thousands, excluding VAT)     999,844     1,090,481     955,590
Backlog (in months of business) *           12.5        14.2          13.6
Deliveries (in EHUs)                       1,078      1,136        1,289
                                            
                                           Commercial Property
                                          Q1 2013    Q1 2012      Q1 2011
Net orders (in sq.m)                        92          64            11,489
Net orders (in € thousands, including       158         136           41,910
VAT)
Backlog (in € thousands, excluding VAT)    26,357     37,723       35,926

* calculated in relation to 12-month rolling revenues

Contact:

Chief Finance Officer
Bruno Coche
+ 33 1 41 43 44 73
Infos-invest@ketb.com
or
Press Relations
Delphine Peyrat - Wise Conseil
+ 33 6 38 81 40 00
dpeyratstricker@wiseconseil.com