Kaufman & Broad: Results for the First Nine Months of 2013

  Kaufman & Broad: Results for the First Nine Months of 2013

             UNAUDITED AND NOT APPROVED BY THE BOARD OF DIRECTORS

Business Wire

PARIS -- September 30, 2013

Regulatory News:

  *Business stable over the first nine months

       *Total revenues: €679.3 million
       *Housing orders in volume: 3,943 units

  *Mixed economic performance

       *Gross margin rate: 19.2%
       *Attributable net income: €23.8 million (-14.6%); Q3: €6.5 million
         (-24.4%)
       *Net financial debt: €43.1 million (-47.0% vs Nov. 2012)

  *Numerous developments underway

       *Housing property portfolio: 3 years of business (around 16,000 lots)
       *Creation of the position of Director of the Managed accommodations
         business
       *Opening of new location in Lille
       *Continued development of Commercial property projects

  *Outlook for 2013: stable revenues and gross margin slightly lower compared
    to 2012.

Kaufman & Broad S.A. (Paris:KOF) announces its results for the first nine
months of fiscal year 2013 (December 1, 2012 to August 31, 2013).

Key consolidated data

(€ million)         9 months  9 months  Change   Q3      Q3      Change
                     2013       2012                 2013     2012
Revenues            679.3     675.7     +0.5%    232.8   219.7   +6.0%
(excluding VAT)
Gross margin         130.3      130.5      -0.2%     44.7     42.7     +4.6%
Gross margin rate    19.2%      19.3%      -0.1 pt   19.2%    19.4%    -0.2 pt
Current operating    45.3       48.4       -6.5%     14.9     17.2     -13.5%
income
Current operating    6.7%       7.2%       -0.5 pt   6.4%     7.9%     -1.5 pt
margin
Attributable net    23.8      27.8      -14.6%   6.5     8.5     -24.4%
income

Commenting on these results, Nordine Hachemi, Chief Executive Officer of
Kaufman&BroadS.A., stated:  “For the first nine months of the fiscal year,
Kaufman & Broad stabilized its business activities. These results, which were
achieved in a real estate market characterized by a lack of visibility,
confirm the quality of the Brand’s position with regard to the core products,
which are in high-quality locations and marketed at prices corresponding to
the expectations of all our customers.

Our development dynamic is built on this solid foundation and on our ability
to continue building up our property portfolio from current levels
representing three years of business.
It has also led to our opening of a new location in Lille, in the heart of a
huge population center. In addition, we decided to take advantage of the good
outlook presented by our managed accommodations business by strengthening our
teams with the arrival of a major professional in the sector.
Finally, we are continuing the development of several commercial property
projects, which should become a reality during the coming quarters.

During all of fiscal year 2013, revenues are expected to remain at a level
comparable to that of 2012, while gross margin is expected to be slightly
down.”

  *Housing revenues: stable for the first nine months (+0.7%)

Revenues for the first nine months of 2013 totaled €679.3 million (excluding
VAT) compared with €675.7 million (excluding VAT) for the comparable period of
2012. During the third quarter of 2013, they increased 6.0%, from
€219.7million (excluding VAT) to €232.8million (excluding VAT).

Housing revenues amounted to €660.2 million (excluding VAT), up 0.7% compared
with August 31, 2012, when they totaled €655.4 million (excluding VAT).
Housing accounts for 97.2% of total revenues. Île-de-France accounted for
44.5% of Housing revenues. In the third quarter alone, Housing revenues
increased 6.1%, to €223.6 million (excluding VAT).

Apartments revenues totaled €630.9 million, down 1.4%. Revenues from
Single-family homes in communities almost doubled totaling €29.3million,
compared to €15.4 million at August 31, 2012.

Commercial property revenues totaled €13.5 million. Finally, the balance of
€5.6 million is accounted for primarily by Showroom revenues.

During the first nine months of 2013, 3,902 housing units (EHU) were
delivered, versus 3,597 housing units (EHU) during the same period of 2012.

  *Slight drop in housing orders

For the first nine months of 2013, housing orders in volume totaled 3,943
versus 4,027 at August 31, 2012, a decline of 2.1%. In value, there was a
decline of 4.4%, to€744.2 million (including VAT).

Orders in Île-de-France accounted for 46.7% in volume and 49.5% in value of
all housing orders, compared to 45.8% and 47.5% for the first nine months of
2012.

In the third quarter, 1,348 housing units were ordered, for a total of €262.4
million (including VAT) versus 1,531 housing units ordered for €283.7 million
(including VAT) over the same period of 2012, with social housing blocks
having significantly declined in the third quarter of 2013.

Over one year, the share of block orders fell from 33% to 24% whereas orders
made by investors rose from 31% to 38%. The share of orders under the Scellier
and Duflot incentives remained at 22%.

The average monthly take-up rate of new programs launched during the third
quarter of 2013 was 39.8%.

Commercial offer totaled 3,379 housing units versus 3,782 housing units at
August 31, 2012.

Office orders in value accounted for €11.5 million (including VAT) over nine
months.

  *Gross margin rate: stable at 19.2%

For the first nine months of the year, the gross margin totaled €130.3
million, compared to €130.5 million at August 31, 2012. The gross margin rate
remained stable at 19.2%. For the third quarter, the gross margin increased
4.6% compared with the same period in 2012 and the margin rate was 19.2%,
versus 19.4% in the third quarter of 2012.

Current operating profit amounted to €45.3 million over nine months and
accounted for 6.7% of revenues, compared to 7.2% for the same period in 2012.
In the third quarter alone, current operating profit was 6.4%, compared to
7.9% in the third quarter of 2012.

The cost of net financial debt totaled €0.8 million, versus €2.8million for
the first nine months of 2012. This marked improvement may be explained for
the most part by the reduction in average net financial debt.

Attributable net income totaled €23.8 million for the first nine months of
2013, down 14.6% compared to the same period in 2012. It was down 24.4% in the
third quarter of 2013 alone and totaled €6.5 million.

  *Continued deleveraging and working capital requirement reduction

Net financial debt was reduced by €38.2 million compared to November 30, 2012
and totaled €43.1 million at August 31, 2013.

Working capital requirement totaled €141.7 million at August 31, 2013. It
accounted for 13.7% of revenues based on a twelve-month rolling period, versus
14.0% at November 30, 2012.

At August 31, 2013, cash and cash equivalents (available cash and investment
securities) totaled €194.6 million, an increase of €40.8million from November
30,2012. Kaufman & Broad’s financial capacity at the end of August 2013
totaled €247.3 million.

  *Numerous developments underway

In Housing, backlog totaled €1,067.6 million (excluding VAT), compared to
€1,166.7 million (excluding VAT) at August 31, 2012. It represents nearly 13
months of business.

At the end of the third quarter of 2013, Kaufman & Broad had 172 housing
programs on the market (169 at August 31, 2012), 46 of which were in
Île-de-France and 126in the Regions.

In the next quarter, 27 new programs are scheduled to launch, representing
1,882 housing units (8 new programs in Île-de-France representing 694 housing
units and 18 new programs in the Regions representing 1,188 housing units).

At August 31, 2013, the property portfolio totaled  16,236 housing units, for
potential revenues corresponding to three years of business. Kaufman & Broad
intends to continue building up its property portfolio starting from current
levels, which are already high.

In addition, a position of Director of Managed accommodations (student,
tourist and corporate accommodations, senior residences) was created and given
to Daphné Teulade, the former Director of Development and Planning at GDP
Vendôme Immobilier. In this position, she will be in charge of the development
and coordination of that business. Since 2000, Kaufman & Broad has completed
about 20 managed accommodations (representing around 3,000 lots) and intends
to accelerate its development in this area.

In Commercial property, Kaufman & Broad is continuing the development of
several projects representing nearly 63,000 sq.m of floor area for revenues of
around €400 million on which work should begin during the coming quarters.

Finally, the opening of a new location in Lille is an expression of Kaufman &
Broad’s desire to have a presence at the heart of a huge population center in
order to develop the entire range of products offered by the Group.

  *Next regular publication: 2013 annual results, second half of January,
    2014.

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, for 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 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

                                               9 months 2013  9 months 2012
Revenues                                        679,313        675,672
Cost of sales                                    (549,054)       (545,174)
Gross margin                                     130,259         130,498
Selling expenses                                 (21,527)        (21,346)
General and administrative expenses              (46,836)        (44,745)
Technical and customer service expenses          (13,356)        (11,591)
Other income and expenses                        (3,250)         (4,379)
Current operating income                         45,290          48,437
Other non-recurring income and expenses          (7)             (17)
Operating income                                 45,282          48,420
Cost of net financial debt                       (780)           (2,779)
Other income and expenses                        -               850
Income tax (expenses)/income                     (13,093)        (12,112)
Share of income (loss) of equity affiliates      353             196
and joint ventures
Income (loss) attributable to shareholders       31,762          34,575
Minority interest                               7,976          6,731
Attributable net income                         23,786         27,844
Earnings per share (€) ^(*)                     1.10           1.29

^(*) Based on the number of shares comprising Kaufman & Broad SA share capital
(21,584,658 shares)

                             Kaufman & Broad S.A.
                         Consolidated balance sheet *
                               (in € thousands)
            *Unaudited and not approved by the Board of Directors

ASSETS                                          Aug. 31, 2013  Nov. 30, 2012
Goodwill                                        68,511         68,511
Intangible assets                                84,290          84,897
Property, plant and equipment                    5,788           5,604
Equity affiliates and joint ventures             7,287           4,373
Other non-current financial assets               951             1,262
Non-current assets                               166,827         164,647
Inventory                                        285,415         284,469
Accounts receivable                              237,325         268,189
Other receivables                                135,132         180,141
Cash and cash equivalents                        194,607         153,763
Prepaid expenses                                 1,252           1,008
Current assets                                  853,731        887,570
TOTAL ASSETS                                    1,020,558      1,052,217
                                                                 
EQUITY AND LIABILITIES                          Aug. 31, 2013  Nov. 30, 2012
Authorized capital                               5,612           5,612
Additional paid-in capital                       133,102         135,910
Interim dividends                                -               (48,455)
Attributable net income                          23,786          47,624
Attributable shareholders’ equity                162,500         140,691
Minority interest                                8,761           8,420
Shareholders’ equity                             171,261         149,111
Non-current provisions                           25,352          24,510
Borrowings and other non-current financial
liabilities                                      236,449         234,535
(> 1 year)
Deferred tax liabilities                         68,733          55,586
Non-current liabilities                          330,534         314,631
Current provisions                               146             1,000
Other current financial liabilities (< 1 year)   1,212           458
Accounts payable                                 458,721         473,624
Other payables                                   57,190          111,776
Deferred income                                  1,495           1,616
Current liabilities                             518,763        588,474
TOTAL EQUITY AND LIABILITIES                    1,020,558      1,052,217

                             Kaufman & Broad S.A.

                            Additional Information

                          (cumulative at August 31)

                                Single-family homes in communities
                               9 months 2013  9 months 2012  9 months 2011
Net orders (in units)            279            188            65
Net orders (in € thousands,      78,082          39,573          22,903
including VAT)
Backlog (in € thousands,         90,796          47,427          36,300
excluding VAT)
Backlog (in months of            28.8            21.6            5.7
business)*
Deliveries (in EHUs)            140            60             192

                                Apartments
                               9 months 2013  9 months 2012  9 months 2011
Net orders (in units)            3,664          3,839          4,795
Net orders (in € thousands,      666,133         738,757         986,523
including VAT)
Backlog (in € thousands,         976,790         1,119,302       1,163,126
excluding VAT)
Backlog (in months of            12.1            14.0            15.4
business)*
Deliveries (in EHUs)            3,762          3,537          3,650

                                Commercial property
                               9 months 2013  9 months 2012  9 months 2011
Net orders (in sq.m)             3,953          5,334          11,489
Net orders (in € thousands,      11,482          13,823          41,660
including VAT)
Backlog (in € thousands,        26,913         37,419         19,588
excluding VAT)

* calculated in relation to twelve-month rolling revenues

                             KAUFMAN & BROAD S.A.

                            Additional Information
                                 (Quarterly)

                                           Single-family homes in communities
                                          Q3 2013      Q3 2012    Q3 2011
Net orders (in units)                       146          91         53
Net orders (in € thousands, including       42,113        16,549      17,288
VAT)
Deliveries (in EHUs)                       65           24         49

                                            Apartments
                                           Q3 2013  Q3 2012  Q3 2011
Net orders (in units)                        1,202    1,440    1,513
Net orders (in € thousands, including VAT)   220,301   267,173   306,213
Deliveries (in EHUs)                        1,293    1,146    1,225

                                            Commercial property
                                           Q3 2013  Q3 2012  Q3 2011
Net orders (in sq.m)                         315      -        -
Net orders (in € thousands, including VAT)  502      -        -

Contact:

Chief Financial 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