Q3 Results. September 21, 2005» 1

Transcription

1 Q3 Results September 21, 2005» 1

2 Financial results

3 9-month highlights» Significant growth in net income» Sharp improvement in gross margin» Strong increase in housing backlog in value terms» 3

4 9-month key figures in millions 9-month 2005 Change* Revenues % of which Housing % Gross margin % Operating income % Net income % Gearing 74% +24 pts Total orders (in volume) 5, % Housing backlog (in millions) % * vs. 9-month 2004» 4

5 Income statement in millions 9-month month 2004 Change Revenues Chiffre d affaires % Gross Marge margin brute % Operating Résultat d exploitation income % Net Résultat financial financier expense (7.1) (7.0) - Exceptional Résultat exceptionnel expense (2.8) (0.8) - Income Impôts taxes (19.1) (12.6) +51.2% Goodwill Amt. écarts amortization d acquisition (8.0) (6.7) +18.3% Joint ventures Minority Intérêts minoritaires interests (11.2) (5.9) - Net Résultat income net (pdg) %» 5

6 Revenues in millions Housing Apartments Single-family homes 9-month month Change +23.6% +27.1% +13.3% Commercial property Showroom % Other (undeveloped land, etc.) % TOTAL %» 6

7 Gross margin in millions 9-month month 2004 Change Revenues % Cost of sales (504.4) (437.1) % Gross margin % In % of revenues 24.4% 21.0% pts 24.7% 24.8% Quarterly gross margin 23.5% 19.1% 21.0% 22.5% Q1 Q2 Q3 Q1 Q2 Q » 7

8 Improvement in margins points 21.0% 24.4% points 9.5% 11.2% points 3.8% 4.4% Aug. 31, 2004 Aug. 31, 2005 Gross margin Aug. 31, 2004 Aug. 31, 2005 Operating margin Aug. 31, 2004 Aug. 31, 2005 Net margin» 8

9 Operating income in millions 9-month month 2004 Change Gross margin % Marketing expenses (43.7) (31.8) +37.0% Admin. expenses (27.8) (21.2) +31.2% Other expenses (16.7) (10.4) +60.0% Operating income % Operating margin (%) 11.2% 9.5% +1.7 pts» 9

10 Net financial expense in millions 9-month month 2004 Change Financial expense (15.3) (15.2) +0.2% Financial income % Sub-total (14.8) (13.8) +7.2% Capitalized interest % Net financial expense (7.1) (7.0) +2.1%» 10

11 Balance sheet in millions Aug. 31, 2005 Nov 30, 2004 Aug. 31, 2004 Fixed assets Inventories Trade receivables Other receivables Cash and cash equivalents Total assets Shareholders equity Provisions Financial debt Operating liabilities Total liabilities » 11

12 Cash flow statement in millions Aug. 31, 2005 Aug. 31, 2004 Cash flow Change in net working capital (108.1)* (4.8) Cash flow provided by op. activities (53.9) 30.8 Cash flow used by invest. activities (19.8) (54.3) Dividend (13.1) (12.1) Increase/(decrease) in borrowings 80.9 (17.9) Purchase of shares (12.0) - Cash flow provided by fin. activities 55.8 (30.0) * Including 65m advance royalty payment (Dec. 2004) Change in cash position (17.9) (53.5)» 12

13 Gearing 138% 106% 106% Gearing % Net debt M 79% 65% 74% % 33% 36% MAY NOV. MAY NOV MAY NOV. MAY NOV. AUG. 2005» 13

14 Outlook» 14

15 Excellent visibility Ile-de-France Other regions 44.8% 55.2% 48.8% 51.2% 39.9% 60.1% % % 626.6m Aug. 31, m Aug. 31, ,078.4m Aug. 31, 2005 Housing Orders: geographic breakdown» 15

16 Excellent visibility Ile-de-France Other regions 48.8% 51.2% +57.3% 45.8% 54.2% +43.1% 42.8% 57.2% 408.5m Aug. 31, m Aug. 31, m Aug. 31, 2005 Backlog: nearly 8.8 months of business» 16

17 2005 objectives Operating objectives» Optimize synergies» Pursue development outside the Paris area Financial objectives» Increase revenues by more than 20%» Maintain high gross margin 18.9% 18.9% 18.4% 21.7% » 17

18 Our businessmodel» 18

19 Strict operating procedures Centralized risk analysis and management Search for land Internal & external studies Signing of an optimal agreement to buy Unanimous decision by the Land Committee Technical and financial assessment of the project Building permit requested Project follow-through Building permit obtained Pre-sales Commercial Property: 100% Housing: 30 % Land acquired Profitability requirement: expected gross margin of 18.5% per program» 19

20 Our business : developing and building Covering the entire property chain Property development Construction supervision Selecting land for acquisition Project design Building permit Delivery Customer service Pre-sales Sales Financial advice and follow up for customers» 20

21 A strong brand combined with critical mass Strong brand image :» Better access to land» Long-term customer loyalty» First-time buyer Move-up buyer» Rapid sales process Critical mass :» Choice of the best subcontractors» Optimum prices and time frames» Standardized purchasing» 21

22 Market fundamentals» 22

23 A mixed socio-economic environment Positive trends» Highest birth rate in Europe (75 million inhabitants in 2050*)» Increasing number of households (undoubling)» Longer life expectancy» Population shifts to Southern, Southwestern and Western France Uncertainty factors» High unemployment» Very low consumer confidence» High selling prices * L Express business magazine - May 2, 2005» 23

24 A still-promising housing market Market indicators» Housing offers up 17.5% in first-half 2005 over the prior-year period» Very low new housing inventories: approximately 8,000 single-family homes and 4 months of sales for apartments*» Sustained interest in property offering tax advantages for investors * Source: ECLN new housing market survey, first-quarter 2005» 24

25 A still-promising housing market Financial indicators» Interest rates remain attractive Short and long-term rates at record lows 15-year mortgage rates:» 3.5% at fixed rates» 2.8% at variable rates» Selling prices expected to increase slightly» Consumer solvency rate less than 30%» 25

26 Commercial property A risk-free business conducted exclusively for third parties» Take-up rate: 917,500 sq.m (stable /H1 2004)» Immediately available: 2.9 million sq.m, down 5% from year-end 2004» Vacancy rate down slightly, by 6.1%» Rents down 2% in Paris at year-end 2004» Sustained demand from major French, US and German institutional investors» 2005 outlook: 12 million * Source: CBRE Bourdais H1 2005» 26

27 Our strategy» 27

28 Selective positioning in the Housing business: Locations Customers Products Deep, fast-growing markets Customers with high, sustainable solvency Tailored products Large cities, Atlantic and Mediterranean coasts, Major corridors Homebuyers, particularly move-up buyers Primary residence and investment products Service hotels for business travelers, tourists and students» 28

29 Selectively positioned in strategic locations Orders (in volume) Market share Ile-de-France Other regions Total (France) Total (selective) Orders (in volume) 2,005 5,085 7,090 7,090 Market share 9.2% 15.5% 6.8% 13.0% Bordeaux Grenoble Rouen Toulouse Nice Lyon Lille Strasbourg Marseille Montpellier Nantes 1, , % 28.5% 27.0% 23.0% 12.5% 12.0% 12.0% 12.0% 11.0% 7.0% 5.0%» 29

30 Other regions: Positioned on TGV high-speed train lines Lille Main TGV South lines to Paris Lille Rouen Paris Strasbourg Rouen Paris Strasbourg Nantes Nantes Lyon Annecy Bordeaux Lyon Bordeaux Grenoble Grenoble Toulouse Montpellier Marseille Toulon Nice Toulouse Montpellier Marseille Toulon Nice Between 2000 and 2010, 7 million people will move from Northern and Eastern France to the Western and Southwestern/Southeastern regions Kaufman& Broad s growing presence in major cities in Southern and Southwestern France» 30

31 and price Picardie Champagne-Ardennes Haute Normandie Alsace Basse Normandie Auvergne Nord Pas de Calais Pays de la Loire Midi-Pyrénées Rhône Alpes Provence-Alpes-Côtes d Azur Aquitaine Languedoc Roussillon *Source: National Institute of Statistics and Economic Studies (INSEE) Increase in new housing prices 1998 to % 20% 30% 40% 50% 60%» 31

32 Selectively positioned in strategic customers Traditional homebuyers Optimal solvency and sustainability K&B National average Investors First-time buyers Move-up buyers» 32

33 Our business : customers In Ile-de-France and the regions : First-time buyers Move-up buyers» Middle managers 25-35, 1 child» Monthly income: 2,300 to 4,600» Interest-free loan and 1% employer loan» Senior managers 35-55, 1 or 2 children» Monthly income: 3,000 to 6,800» Sale of previous home» 33

34 An innovative approach Excellent understanding of clients expectations Ability to anticipate and follow lifestyle changes Innovative concepts» American-style home communities» Family room / Kitchen» Extra room Personalized offer» Brands covering all market segments» Wide selection of showroom options» 34

35 New growth products: Service hotels for business travelers, tourists and students» Inadequate supply of service hotels for business travelers and tourists in Western, Southern and Southwestern France» Shortage of student housing in France s large university towns» Products marketed by specialized networks and operated by professional managers» Commercial lease signed by the buyer and the manager» Guaranteed rental revenue and tax advantages for the customer» New type of customer» 35

36 New growth products: Service hotels for business travelers, tourists and students Service hotels for business travelers and tourists» Toulouse: 3 residences 800 units» Bordeaux: 3 residences 444 units» Marseille: 1 residence 130 units» Nice: 2 residences 130 units» TOTAL: 1,504 units Student residences» Toulouse: 1 residence 200 units» Marseille: 1 residence 240 units» Nice: 1 residence 158 units» Lyon: 1 residence 91 units» TOTAL: 689 units» 36

37 Apendices