Kaufman & Broad SA · EURONEXT:KOF
Kaufman & Broad SA — H1 2023 Earnings Presentation
34 slides from Kaufman & Broad SA's earnings presentation, Jul 13, 2023
Slide 1: Results 1st half 2023 and outlook
Results 1st half 2023 and outlook 13 July 2023
Slide 2: Solid development dynamic in the medium term
SOLID DEVELOPMENT DYNAMIC IN THE MEDIUM TERM > Housing property portfolio > Housing orders (Number of lots) (Number) (€ m value incl. VAT) 35,037 34,694 4,177 808 625 2,525 2,238 503 32,109 End May End May End May End May End May H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2019 2020 2021 2022 2023 2019 2020 2021
Slide 3: The housing market
The housing market A KAUFMAN = BROAD
Slide 4: Some key data on housing needs in France
SOME KEY DATA ON HOUSING NEEDS IN FRANCE ▪ Fondation Abbé Pierre: ▪ 4.1 million people not or poorly housed ▪ 12.1 million people weakened by the housing crisis ▪ Union Sociale pour l'Habitat: ▪ 2.42 million people waiting for social housing (+7% vs. 2021) ▪ INSEE: ▪ 11 million people live on their
Slide 5: Decrease in building permits and new housing starts
DECREASE IN BUILDING PERMITS AND NEW HOUSING STARTS Volume of permits and housing starts Market (May 2003 to May 2023) (Cumulative over 12 months of the whole number of France excluding pure individual housing units and Mayotte not included) 395 000 370 000 345 000 320 000 10 year average 295 000 27
Slide 6: Building permits obtained: market vs KBSA
BULDING PERMITS OBTAINED: MARKET VS KBSA 2022 vs 2021 > Changes in% in the number of building permits (excluding pure individual housing) vs. half year ago Market KBSA +29% +24% +25% +12% -23% -26% H1 2021 H1 2022 H1 2023 Source: Ministry of Ecological Transition and Territorial Cohesion - Sdes, Sit
Slide 7: Further decline in production of loans to individuals
FURTHER DECLINE IN PRODUCTION OF LOANS TO INDIVIDUALS Amount of loan Number of bank loans production granted March 2023 to May 2023 Vs -38.2% -39.3% March 2022 to May 2022 Source: Observatoire Crédit Logement/CSA Annual growth rate of outstanding home loans (%) Source: Banque de France Presentation
Slide 8: Further rising interest rates
FURTHER RISING INTEREST RATES > 20 year fixed rate loans in the competitive sector Source: Observatoire Crédit Logement/CSA % 4 3,5 3 2,5 2 1,5 1 0,5 0 May 2020 Dec. 2020 May 2021 Dec. 2021 May 2022 Dec. 2022 May 2023 ▪ Since January, average credit rate rises have been 20 bps per month, ▪ The loan
Slide 9: Housing Activity
Housing Activity A KAUFMAN = BROAD
Slide 10: Anticipation of tax measures being called into question
ANTICIPATION OF TAX MEASURES BEING CALLED INTO QUESTION Rapid sales decline underpinned by tax systems ▪ Anticipation of a gradual reduction in tax benefits ▪ Underweight products for individual investors > Share of retail investors In volume orders 12 m yoy 6 months June 22 to May 23 Dec 22 to May
Slide 11: A fast sales strategy for block sales
AN EAST SALES STRATEGY FOR BLOC SALES ▪ Kaufman & Broad adapts its offer by favouring block sales to institutional investors >% share of blocks in total orders (Volumes) % 80 70 60 50 40 30 20 10 0 H1 H1 H1 H1 H1 H1 Q1 2017 2018 2019 2020 2021 2022 2023 Market (Source: FPI) Kaufman & Broad Presentat
Slide 12: Housing orders: trend for customer breakdown
HOUSING ORDERS: TREND FOR CUSTOMER BREAKDOWN > H1 2022 > H1 2023 By volume 5% Of which 44% 29% 19% 9% 10% in managed residences 2,525 2,238 Of which 16% Lots lots in managed Of which 26% Of which 38% 8% in managed residences in managed 44% residences 76% residences By value 5% 7% 18% 32% 29% €625M €
Slide 13: Volume orders: good resilience in a sharply declining market
VOLUME ORDERS: GOOD RESILIENCE IN A SHARPLY DECLINING MARKET A commercial offer that outperforms the market: -11% for Kaufman & Broad vs. -41% for the market > Orders (number of lots) 12 m yoy 6 months June 22 to May 23 Dec 22 to May 23 Vs. June 21 to May 22 Vs Dec 21 to May 22 -6.7% -11.4% -32.1% -
Slide 14: A commercial offer that works twice as fast as the market's
A COMMERCIAL OFFER THAT WORKS TWICE AS FAST AS THE MARKET'S > Take-up period over 12 months * For 2023, year on year estimate Q2 2022 - Q1 2023 Market Kaufman & Broad 16 14 12 10 8 6 4 2 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 * Presentation of results for the first half o
Slide 15: A commercial offer that renews very quickly
A COMMERCIAL OFFER THAT RENEWS VERY QUICKLY IN LINE WITH NEW MARKET CONDITIONS ▪ Commercial launches of Kaufman & Broad rose by 12% at 12 months apart ▪ Commercial market launches were down 35% over the same period > Sales (number of lots) 12 m yoy 6 months June 22 to May 23 Dec 22 to May 23 Vs. Jun
Slide 16: A housing land portfolio of more than 6 years of activity
A HOUSING LAND PORTFOLIO THAT REPRESENTS MORE THAN 6 YEARS OF ACTIVITY > Housing land portfolio - Number of lots 35,001 35,037 34,864 34,694 32,109 End May End May End May End May End May 2019 2020 2021 2022 2023 ▪ Land reserve at the end of May 2023: ▪ > 6 years of activity ▪ 85 % (in lots) in area
Slide 17: Backlog housing, representing 2 years of activity
BACKLOG HOUSING, WHICH REPRESENTS 2 YEARS OF ACTIVITY > Backlog Housing € m, HT (Number of months of activity) 2,464 2,290 2,326 2,149 2,026 (27.1) (26.1) (24.3) (22.8) (18.8) End May End May End May End May End May 2019 2020 2021 2022 2023 Presentation of results for the first half of 2023 17
Slide 18: Property activity
Property activity A KAUFMAN = BROAD
Slide 19: Commercial property in 1st semester in figures
COMMERCIAL PROPERTY ON 1st SEMESTER IN FIGURES €M 381.2M €M 24.5 €M 669.2 of revenue incl. VAT excl. VAT of orders of Backlog Vs €M 87.3 m Vs €M 28.5 Vs €M 1076.1 (excl. VAT) (incl. VAT) (excl. VAT) H1 2022 H1 2022 H1 2022 43,358 sq.m 241,534 sq.m 157,782 sq.m In On marketing Under Development Const
Slide 20: 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 39% 15% 20% 17% 9% Cumul. 39% 54% 74% 91% 100% At 31 May 2023, the percentage of compl
Slide 21: Logistics platform - Montbeugny (03)
LOGISTICS PLATFORM - MONTBEUGNY (03) ▪ Logistics platform of 22,000 sq.m (3 cells + 1 awning) in the town of Montbeugny (Allier) ▪ BEFA signed in May 2022 with a major logistics provider, ▪ Vefa signed in June 2022 with an SCPI ▪ BREEAM VERY GOOD preview certification, ▪ Rooftop photovoltaic power p
Slide 22: Financial results
Financial results A KAUFMAN = BROAD
Slide 23: Revenue breakdown
REVENUE BREAKDOWN €848.8M Housing €574.4M (Apartment, w single-family housing homes in communities, units Q3 managed residences) 54.3% €283.5M €461.0M vs. €481.6M housing units 83.8% Commercial property Commercial (Offices, retail and logistics) H1 property 44.9% €605.8M €381.0M vs. €87.3M Commercia
Slide 24: From revenue to operating income
FROM REVENUE TO OPERATING INCOME > In millions of euros 848.8 (+47.8%) (707.2) 141.7 (+42.3%) 67.7 16.7% of (74.0) (+58.3%) rev. 8.0% of rev. Revenue cost of Gross Current Profit sales margin operating income expenses Presentation of results for the first half of 2023 24
Slide 25: Operating margin
OPERATING MARGIN > Current Operating Margin (In% of revenues) 8.0% 7.6% 7.5% H1 2021 H1 2022 H1 2023 Presentation of results for the first half of 2023 25
Slide 26: From operating income to net income
FROM OPERATING INCOME TO NET INCOME > In millions of euros 67.7 (+58.3%) (7.4) (14.9) 46.0 0.6 (+46.3%) (7.5) 38.5 (+69.5%) 8.0% of rev. 4.5% of rev. Operating Net Cost of Taxes Share of profit Consolidated Minority Attributable profit Financial Debt from equity net Income Shareholdings net income a
Slide 27: Change in working capital requirement
CHANGE IN WORKING CAPITAL REQUIREMENT > In millions of euros ( As % of revenues) 245.4 177.0 21.3% * 116.9 103.2 14.2% 8.4% 6.9% * 50.6 3.1% 24.7 1.6% May May May May Feb. May 2019 2020 2021 2022 2023 2023 * Restatement taking into account the change in interpretation of IAS23 on the capitalisation
Slide 28: Consolidated balance sheet at 31 May 2023
CONSOLIDATED BALANCE SHEET AT 31 MAY 2023 > In millions of euros ASSET LIABILITY Non current liabilities 263.7 248.1 Shareholders' equity IFRS 16 rental debt (€42.2M) Working Capital Requirement 24.7 45.7 and Put Néorésid (€3.5M) Net cash position (€56.0M incl. IFRS 16 and Put Néorésid lease 101.7 9
Slide 29: Financial structure
FINANCIAL STRUCTURE In € millions 31 May 2023 30 30Nov Nov2022 2022 Shareholders' equity 248.1 256.4 257.8 Financial debt * 211.0 214.3 214.3 O/w financial debt < 1 year (excluding IFRS 16) 52.5 5.9 5.9 O/w financial debt > 1 year (excluding IFRS 16) 116.7 166.7 166.6 O/w IFRS 16 lease debt 41.8 41.
Slide 30: Changes in equity and net financial debt
CHANGES IN EQUITY AND NET FINANCIAL DEBT > In millions of euros 254.3 240.0 248.1 67.1 (46.4) (101.7) End of May. 2021 End May 2022 End May 2023 * Consolidated Net financial debt/(Net cash and cash equity equivalents) excluding IFRS 16 and Put Néoresid lease debt * After payment of the 2022 dividend
Slide 31: Deloitte's 'Best Managed Companies' label for the second year running
DELOITTE'S ‘BEST MANAGED COMPANIES’ LABEL FOR THE SECOND YEAR RUNNING ▪ Kaufman & Broad earned Deloitte's ‘Best Managed Companies’ label for the second consecutive year, awarded in 2023 to 14 companies in France ▪ This label rewards the excellence of companies that are distinguished by the quality o
Slide 32: Outlook
Outlook A KAUFMAN = BROAD
Slide 33: Outlook
Outlook ▪ All of these factors led the Group to specify the outlook announced at the end of last January for the whole of 2023: ▪ Attributable net income is expected to increase by around 20%, ▪ The Current operating income (COI) rate is expected to be around 8%, ▪ Revenue is expected to grow by 6 t
Slide 34: 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