2017: another year of growth in marketing performance and financial results

In 2017, Kaufman & Broad successfully pursued its development in the areas defined in 2015:
Consolidation of our leading positions in the main metropolitan areas and strengthening of our territorial coverage;
Strengthening of our commercial property business in the regions, in both Offices and Logistics;
Pursuing our policy of quality and innovation in customer service;
This approach has resulted in a further homogenous increase in our land reserve (+14.2%), which represents three years of business, our housing unit orders in terms of value (+16.3%) and our backlog (+16.1%). At the same time, our take-up period (5.1 months for Kaufman & Broad compared with over 9 months for the market) demonstrates our ability to offer new products appropriate for the needs and fi nancing capacity of our customers. Furthermore, our employees have increased their holding in the share capital to nearly 14% and are now our company’s main shareholders, evidence of their commitment and their confi dence in the future.

In 2018, we believe that the new housing market, which is still driven by historically low interest rates (although these are expected to rise slightly), will stabilize with a range of 125,000 to 130,000 housing units. Working on this assumption, and on the basis of stable interest rates, Kaufman & Broad estimates that its revenue growth for the full-year 2018 will be around 8% to 10%, with a gross margin rate remaining at around 19% and adjusted EBIT of 8.5% to 9%. In this context, and with the reduction in our debt in 2017, we will propose a dividend of €2.10 at the next Shareholders’ Meeting for fi scal year 2017, up 13.5% compared with 2016.

On behalf of all the teams at Kaufman & Broad , thank you for your trust and support.

Nordine Hachemi