Good morning, everybody. This is the annual presentation of Kaufman & Broad.

Before we start, we will have a Q&A at the end of the presentation. First, we'll answer the questions from the people in person and then the questions in writing.

You can use the question tab in the podcast or you can dial *1 on your phones. We're going to listen to Nordine Hachemi, the CEO of Kaufman & Broad.

Thank you. Thank you.

Hello. Thank you for being with us.

These are the annual results for 2025. Our year ends on the 30th of November.

I keep on repeating that every single year, but it's a good thing to repeat that. As usual, we'll start with the first slide.

The first slide is a summary of the main parameters that we follow. This is our scorecard, if you will, which is something that gives us a good appraisal of the short-term and mid-term business or activity in our group.

The first chart is our portfolio, the land portfolio, housing land portfolio, that is. Those are the documents we've signed with those who own the land, the land which possibly could be land where we would build our housing units for which we would have construction permits even though we've not yet received the construction permits.

As long as the land's not been bought, it's in the housing land portfolio. The numbers were going down for a number of years.

We would readjust the portfolio on the basis of economic parameters, including the rates that were going up. There were renegotiations of the land, and therefore we've decided to set aside some projects that we thought wouldn't be good enough given the economic situation.

Since 2024, again, the numbers are going up, which is something very important in terms of our company's future development. Then if we look at housing orders, that's the shorter term, they're up as well.

We'll look at the details in a minute, but we had two different periods. During the first nine months, there was sustained growth or increase, and then there was a slowdown on the market.

Then the take-up rates are still very dynamic. The take-up rate is something that means the time it takes to sell all the units we have at a moment in time.

Then the total backlog at €2.4 billion more or less, with a company property backlog that has had ups and downs, variations that we'll talk about in a minute. This factors in the EDF headquarters in the town of Marseille in the South of France.

Now, a few words about the housing market to start with. As you can see here, the objective is to show you what usually happens six months before the local elections that we call the municipal elections.

Look at the trend which started in 2025. Six months before the local elections, as you can see, and that's the yellow curve or the yellow bars, as you can see rather, that's six months ahead of the municipal elections, that's when the construction permits go down before the elections, and then there's an upward trend afterwards.

That's why, as you can see, we have cycles. We usually say that the property market is cyclical.

There's no reason for that, no normal reason. There are cycles because of the elections.

We create these artificial cycles due to these elections. There are other cycles also due to other reasons, for instance the regulation that keeps on changing or the legal framework that changes.

If you look at the market, these are essential needs that you have to cover. We can't say that there are any cycles, or if there were to be a cycle, it would be totally different.

As I was saying, before the elections there's a drop, and then for the very first time for the past 20 years, look at the right-hand side of the chart, look at the construction permits that we get. Usually low, but this time there's an increase before the local elections.

How come? This is something that we've heard from the politicians.

We've reached a level that's so low that everybody today has realized that we can't go on like that. We can't say we want to freeze construction for new housing units in France.

People are all aware of that. You've probably heard that there's a correlation between the population decrease and the fact that we don't have enough housing units and all the consequences connected to the population decrease.

We have fewer housing units and fewer babies, and this is not consistent if you think that people have or people say that people have to take their retirement at the age of 60. Anyway, there's awareness, and despite the fact that there are local elections soon, the mayors give us these permits.

They give us the permits. They say, "Please don't do anything before the elections," but at least they look at the documents that we've filed for construction permits.

That's good news for us. In this very dull economic backdrop, Pisani-Ferry was an economist who was very proud 10 years ago to say, that is during presidential elections he was saying, we shouldn't invest in property if it's not productive.

It was so nonproductive that demographic numbers or population numbers were going down. You don't need to have the Nobel Prize.

That the first driving force is population, if it's going up or not. If there are no human beings on Earth, there's no economy.

Nonproductive investments, look at what it's going to lead us to. Now, as you've probably heard, everybody today is talking about building new housing units, and 400, 500,000 people are saying we need to build more housing units.

That's interesting, an interesting trend which is quite conducive for our business, which means that the paradigm's going to shift politically speaking when we talk about constructing or building new housing units. Now this is a comparison between us and the other market players.

Usually when we do this benchmark, we talk about how good and dynamic our company is. These are usual numbers that we show you.

We're doing quite well, I'd say. If you look at the change, year-on-year change for the net orders that we've received for this period, 2025, 2024, look at the market players and the evolution and what we've done.

We're doing well, I'd say. Then I'll tell you more about last year in a minute, but first, the housing units.

400,000 is the latest number, between 400 and 500,000 is the number that people talk about, that is number of housing units, difficult to appraise, though. The most serious report that we have was talking about these housing needs and how they can be computed.

You see, the households are changing and population is changing as well. People behave differently.

Now we have many one-person families or one-adult families. In the past, people wouldn't divorce, whereas nowadays people get married, they split, and this leads to different types of housing needs, different types of households.

Some of these housing units are very old. Then if you look at what's on the slide, you will see that there are other types of needs that have to be covered for those who need to take a home for a quick period of time.

I'm not talking about Airbnb, but we need these buffer housing units because people have to travel for their own profession reasons. Between 400 and 500,000 units, but at present we're at 250,000 units more or less.

Anyway, this really shows that there's a correlation between the decrease in housing units and the typology of households, the types of households that are changing. This is very much connected to the short-term or mid-term population trends.

People are saying now we need 2 million housing units before the year 2030. This is all very nice because it means that people are more aware of what's happening.

However, the state or the government is not the one that's going to give you the construction permits. What's very important is to see what the mayors are going to do.

Will they continue and grant more permits or not? Because you know what's difficult for the mayors, well, apart from the fact that over the past 10 years people were always looking at the construction of new housing units in a negative way, and that's why they didn't want to grant any more permits, but there's another topic which is what we call in French the taxe d'habitation.

When the elected representatives build these housing units, there are other costs attached that the towns have to pay. For instance, primary schools are paid by the cities.

There's more public transport. When the population's going up in a village or town, then the mayors will increase the home tax so that they can collect more money.

Now this taxe d'habitation tax has never been challenged or questioned. There was a direct link between what was paid and the services that people would get.

You would know you'd pay your tax and you'd get more public transport or schools, for instance. When this tax was cancelled, that was the equivalent of €40 million that disappeared altogether.

Back to our business. As I was saying, we have a portfolio, a land portfolio which is going up again.

We've not reached yet the level that we had several years ago. Anyway, it's important to see that there's an upward trend and that what we have in the portfolio is good given the economic and tax environment.

Let's have a look at the breakdown. What's interesting here is to see that we're selling our projects in a different way.

There's an increase for the first-time buyers, as you can see, and for those who buy their homes or flats. If you look at investors, they're at the same level as 2024 with the end of the Pinel scheme, with different products though and projects.

We have managed residences, for instance. Yet these projects are quite interesting for the investors, the Pinel investors.

We'll have a look at the schemes that exist today, all that William's going to be talking you through, and the take-up period. Now what's more important than the gap between us and the other market players is the changes.

There's sustained momentum, but when the market was doing well, that's in 2018-2020, we were also quite constant in terms of the take-up rate, that is we don't necessarily follow the market, which really shows that the projects where we have mirror the needs of our clients and what they want to buy. We're not waiting for rates to go down, for instance mortgage rates to go down.

We don't want to have a special tax scheme because when the tax schemes vanish, we can't sell the housing units any longer. On the contrary, look at the markets.

They suffer from these ups and downs, these hurdles on the way, whereas what we do is that we think much more about the longer run and the decisions we make are such that we know that we have a good sell-through, that we can sell the housing units. We're not passive.

We are very active on the housing market, and that's why we outperform compared with the other players on the market. Then the backlog, we've talked about the backlog before.

The housing backlog is more or less stable versus last year's. Now we have to still work on the housing backlog because our intention is to still improve in the years to come, and there's room for us to improve.

Now it is very much based on the mayors and local elected representatives will be giving us more construction permits. Before we listen to William, here's something about our development.

Now this is perhaps not something you factor in when you analyze our company, but we're still developing our management activity. We manage students' residences.

There are a number of projects that we are currently developing, and we hope that in the years to come we'll have more or less 4,000 rooms for students, excluding external acquisitions. We're not excluding this altogether.

We'd like perhaps to take over a company that does student managed residences, so that's service. We also have La Banque des Territoires, 51% in La Banque des Territoires, and Caisse des Dépôts et Consignations has 49%.

We have five residences in the portfolio, and we have a residence for which the work's going to start in the town of Courbevoie for students. This residence is going to be in that pocket that we're developing.

The objective is to have it in the property company. We want to develop this portfolio, and we want to operate the business for a number of years, and then we'll continue and develop this property company as best as we can.

We'll listen now to William. William's going to talk you through the regulation and the tax environment.

Thank you, Nordine. Today you have this new act that is being passed.

We need to wait for the decree order so that the rules really are implemented. What we have so far is the interest-free loan, PTZ in French.

Oh, I have to speak near and use a mic. Okay.

Maybe you should give me the other mic, this would be easier. This is being prolonged in 2026.

The ceilings are now higher and the amounts also. This interest-free loan is going to allow for a BRS.

If you were making an acquisition, a second acquisition, you weren't allowed to make use of this BRS. This is no longer the case, and this is going to make things much easier.

Also in 2026, and this already started in 2025, we now have boosters. More and more banks are offering additional loans up to €30 or €40,000 that come on top of the interest-free loan, and this means that the average interest rate or the average total amount is lower for the people buying those housing units.

Then the Well, we're talking about large volumes in 2026, several thousand housing units in 2026. We have started to launch programs using the BRS in 2025, and we are seeing many advantages compared with the price of new housing units.

If you include VAT, it's between 30 and 38%. That is the price difference with new housing units.

This allows us to have access to some people who wouldn't be able to buy a housing unit otherwise. Those BRS are joint leaseholds.

Now, you also have LMNP, this is a nonprofessional furnished rentals. This is kept by removing the amortization and reintegrating afterwards.

This really put a halt to the acquisitions in September because people were wondering whether this was still a good idea. Now LMNP, this scheme is being kept, and this is the only scheme that has been in existence for the past few years now.

It hasn't been modified, and this have allowed us to provide for successful programs, for example for student housing. You have also reduced notary fees and the PEL, which is a property savings plan.

Those are also maintained. Also property tax exemptions and additional loans, all this is being kept.

On this slide there's something that's missing, it's the years. We're talking about 2022 to 2025.

What you see is the expected impact of those new schemes provided for under this new act. This true for Kaufman & Broad, but also for the rest of the market.

This has a strong impact on first-time and second-time buyers. Low volumes since 2022 were essentially due to private investors making fewer acquisitions, and the trend should now change slightly.

Let's talk about the Jeanbrun scheme. That's the name of this scheme for private lenders, private landlords.

Now we need to wait for the decree order. We don't know how this is going to be implemented exactly.

You have the main explanations here. You have the possibility to amortize the investment, and the amortization rate for new housing units is 3.5% per year for intermediate rents, 4.5% social housing, and 5.5% for high social housing units.

Now the amortization of the property is up to 80% of the acquisition cost with a limit of €8,000 per year. This is applicable throughout the country, throughout France.

Obviously, we are talking about A or A1 areas. The minimum rental period is nine years, and we're only talking about unfurnished rentals as a primary residence.

Obviously, tenants have to have a limited income, limited financial resources. There are ceilings.

We're talking about 85% of the population here, we don't think that this will lead to fewer possible tenants. Now regarding the tax exemptions, obviously we are talking about people in the higher tax bracket.

Those are the ones are going to benefit most from this scheme. Taxable income is going to be reduced.

It can be cumulated with a property deficit. They do not have to invest in specific areas in France.

People can choose where they invest. It's the only investment for which you can take up a loan.

Banks since 2025 agreed to finance up to 100% of the costs, which means that investors will only have to pay upfront for the notary fees. Now regarding the limitations, the ceilings are below market rental prices up to 1 or €2.5 per square meter, which is quite limited.

There is one limitation here that you need to be aware of, that people are not allowed to rent to close family members, their parents, their children. This was something that people were able to do under the Pinel scheme, but they are no longer able to do under this new scheme.

With the Jeanbrun scheme, people have the possibility to invest in real estate. It's no longer about a tax exemption scheme, it really is about allowing people to invest in real estate and benefit from a rental amortization.

We'll have to see how things go. We're obviously going to need a few years to see how this is going to be implemented, how people are going to adopt the scheme and include it in their investment strategies.

Let me give you an example. This is a couple, they want to invest in for their retirement.

You have the amounts on the slide. The apartment price, €199,000, notary fees, €4,100.

We've added various costs, the monthly repayments, and the average monthly savings invested in the transaction are €336. If we look at the net forward gain, it's €34,837.

We haven't reached the €8,000 ceiling for the year. If you look at the €199,000, 80%, a 10-year amortization, €66,864, which is significant, and you have a property deficit of €47,000.

Really this is a good scheme. We've obviously prepared other examples, but this is the one we wanted to show to you today.

There's another example. You have Axel now, who is our digital lead.

We've been working with Axel on our new website and with Nordine and David. We thought it would be a good idea to present this new website to you today.

This website is very different from all other sites that you've seen in the real estate industry. People are looking for a unit, for a housing unit, not just a program.

Instead of landing on a page that will show all the programs, you will land on a page that shows all the housing units. What you see on this website is if you look for a two-room or two-bedroom apartment or one-bedroom apartment or anything else in Courbevoie, you can select various parameters, and there is a filter that also allows you to compare the various proposals, the various units.

Using an AI tool, we present various outlooks for this unit. Right now there's one, but in the future, two or three, which allow people to truly customize the unit.

For this unit you will have access to main information, and you also have a text that is displayed that is also generated using an AI tool. You have the a description of the housing unit, and you will have a video in the future with an avatar that will present this unit to you.

If you don't want to read it, if you're in the subway and you don't want to read the document, you can click on the video option and simply listen to the description. If there are some changes made to the unit, then things are updated in real time.

If you make any changes, then the description is updated in real time. This is all very new.

It was put online in January, that's for B2C. Now regarding B2B website, this will be online in February.

What we are seeing now is that since the 7th of January, when this new website was available, download times are four times faster. Now our Google referencing is much, much better because until now we would push on average 135, 140 posted programs, in the future, we're going to have thousands of housing units that will be pushed, which means that we will be referenced in a much better way.

I'm done. Hello again, everyone.

I will now talk about our urban development and urban renewal business. To start with, I'd like to talk about the Neoma in Reims brownfield and the reclamation of this brownfield.

It all started in May 2025. This is a picture in aerial view from May 2025.

This is when the works started. The delivery date is towards end of 2026.

We will have the new Neoma Business School campus, the new ESAD campus, a new student residence with over 300 housing units that was acquired with the Banque des Territoires and the property company, and you also have family housing units. I won't go into any details because the presentation has already been made in the past and you have the pictures on the screen, but what we are doing during this first phase, during phase one, is that, and this is truly innovative, we have a new heating system, a new urban, HVAC, heating HVAC system, and using geothermal energy and solar panels that produce solar energy, obviously using the sun.

75% will be renewable energy, which will allow us to avoid 689 tons of CO2 in this neighborhood. People will benefit from this directly because their energy costs will be down 30%, and in the summer they will also have the possibility to benefit from a cooling system in their housing units.

You have a constant temperature water loop, which means that you have water circulating throughout the neighborhood. This is the yellow line on the graph.

It's connected to the apartment buildings, and they can have access to either a higher temperature or cooler temperatures. Then they have heat exchangers.

Within this loop, we also have an energy storage system. This is the cylinder that you have on the screen, it's a huge tank.

This is actual water storage that comes on top of the water they have in the loop, and this provides for a greater inertia in the system, which is very good in a mixed neighborhood like this one, because half of the year you have commercial buildings and teaching buildings where people will need to cool down their units, and housing units will do the opposite, they're going to collect cool water from system and then inject heat into the system and vice versa. We're also going to use heat pumps.

Now this is the Toulouse or Basso Cambo brownfields and the reclamation projects, they are underway. We're also working on a new brownfield project in Loos, that's the name of the town, it's close to Lille.

This is a reclamation project that was awarded to us by the Lille city. So 340 housing units are going to be built.

We are aiming for a ÉcoQuartier certification. We're going to reuse the bricks.

Some of the buildings are going to be demolished, others are going to be reconstructed, and we're also going to restore the site. D'ici là, 65% of the site and 39% will be basically grass or trees.

Now we have this other project in Courbevoie close to La Défense, 18,000 square meters of housing units, family housing units, student housing, amongst other things. This is a project done together with Banque des Territoires and held by Neoresid.

It also allows us to have a public space, public park for a residence, 4,000 square meters. We also have a sports room, a medical facility, a gym.

It's a highly technical project because there will be several stories. Now regarding our commercial real estate market in 2025, a tough market.

Demand is going down again. Vacancy rates are up.

In the Île-de-France region, vacancy rate is really high, 11.2%. Please also note that this vacancy rate includes a structural vacancy, and I already mentioned this last year, and it's going up because it used to be 1.6 million square meters, now it's 1.9 square meters.

It's almost 1/3 of total vacancy, which is potentially good news, which means that we have a strong potential for converting those office buildings into housing or apartment buildings. Obviously, there are some regulatory issues, but those are projects that will happen over time on a regular basis, and they're going to be good for the market as a whole.

We also need to talk about new offers, the building of new office buildings outside of the Paris area. This situation is quite good as there are fewer projects and available office buildings, new buildings, approximately 480,000 square meters.

If you now have a look at future projects, we would have at maximum 300,000 square meters within three years, which would be in line with market needs. As of 2026, outside of the Paris area, there might be a shortage in office buildings, which means that we could provide for turnkey projects, and this is actually good news for us.

Now regarding the Île-de-France region, the Paris area, things are a bit more complicated because we have 1,750,000 square meters available and the demand is approximately 500,000 square meters. We have a gap here, and things haven't really changed since 2024 when it comes to the building of new office buildings, and the market is getting more balanced.

Now we have fewer projects that are being started, and this could have a positive impact on the situation. Most projects now are within Paris and no longer in the suburbs.

The available new office buildings, especially in the west of Paris in La Défense, this is going down now. If you think about the 800,000 square meters going to be available within three years, well, if you have a look at all those numbers, what you see is that the offer is going to be consumed or used within the three years, and within one or two years we should have new opportunities for new turnkey projects.

Clear. Since I'm talking about turnkey, there's something very important for us if you look at our strategy, that's for commercial property, is that we finalize these projects only when they are sold or presold.

Now if we look at 2025, now revenue €248 million, therefore sharp increase from 2024. That's due to the Austerlitz project.

We have €168 million, VAT included, and then the backlog is high, €408 million. There's a decrease, though, due to the fact that there's revenue that's been eaten up, and of course we have included the new orders.

Then Austerlitz, the project is developing nicely, in keeping with our plan. Now here again, this is the timeline, as you can see, past recognition and future recognition of coming revenue.

These are some photos. For those who are going to be with us for the visit in a minute, that's a photo we took in September 2025.

Now this is a view of the building. This is what the train drivers will see on Line 5 when they drive their train below the building.

That's the other side of it. As you can see, the building is not almost finished, but closer to its end, if I can say.

You see the connection between the metro line, the train line, and the building. Now if you're not with us during the visit in a minute, we've worked on this place thanks to a special thing that we did.

That is, we have a special protection system that was built to protect the metro from objects that might have fallen due to the construction work, we could work also during daytime, not just at nighttime. Here's another view, a recent view of the building from the end of 2025.

This is what the interior of the building, the patio, will look like. As you can see, we have sometimes up to 25 or 30 meters for the passageways there for the pedestrians, and we have a wood flooring as well, which has been quite used, wood has been used in the building.

This year, we've also sold this campus that we're developing in Marseille, 30,000 square meters, as Nordine said earlier on, and the Plaisance headquarters in the town of Compiègne. We're continuing with the logistics platform in Beaucaire.

That's the second project of ours in Beaucaire. Now Bertrand is going to talk you through the nonfinancial results.

Thank you, David. Hello, one and all.

Now here's our CSR performance for 2025. The rating agencies, the general purpose rating agencies for ESG rate us amongst the best companies in this industry.

Now if you look at climate, 2025 started off with the SBTi validation that said that the decarbonization trajectory was good, the objective being 1.5 degrees for the decade. At the end of 2025, there was a major event, that is the CDP, Carbon Disclosure Project, gave us the best rating when they rated our climate strategy.

Kaufman & Broad is in the A list of the CDP now. We joined the list, we were on the list at the end of '25.

Now let's have a look at our trajectory to reduce CO2 emissions. Look at the carbon content for each square meter that's been delivered and produced by the group.

If you look at 2025, there's a decrease in our carbon footprint, and that's possible because we've now delivered on a number of our projects and these include the projects that meet the new plans for 2025. The new projects, as you can see, are included.

This will be for 2028-2030, and we're again aligned on our objectives to reduce our CO2 footprint before the end of the decade. Rather than showing you complex graphs, the best thing is to show you pictures, photos of what we've done to reduce our carbon footprint.

More than 1,000 units are being built in wood or timber. In 2025, there's a first project that was delivered which meets the new regulation for the building permits that will be filed in 2031.

That's the new law that we have met. There are other things that we're working on, the energy transition, we no longer use gas, and also we have more eco-design, we have better layouts, and we use low-carbon materials or sourced from nature.

Then our transition and our impact are visible here. 85% of the square meters of the group in 2025 were on lands on which things were built before as well.

We've managed to process more than 4,000 tons of hazardous materials. We decontaminate the soil, and that's really good for the group.

We recycle, if you will, these lands. Now let me talk you through the financial performance.

Thank you, Bertrand. I suppose you've read the press release.

You have the main aggregates that were published yesterday evening. To cut it short, we're in line with the guidance that we gave you a year ago.

Let us have a look at the revenue, up 5% or more rather for the past 12 months at €1,136 million, which includes €871 million from the housing business, which is slightly down over the past 12 months, and this decrease is due to a number of transactions that were postponed or for other reasons, well, the projects were not good enough, we thought we had to improve them, and sometimes the other reason is that we got the building permits too late, for instance for Courbevoie that David was talking about before. We've just received the cleared permit.

We thought these could have materialized at the end of the year. Now for commercial activity, we're growing commercial property.

The recognition of revenue is in line with what we thought it would be, no nasty surprise. Then if we look at the gross margin, if you look at the other numbers, at €222 million, 19.5%, that's the margin rate, which is rather good and quite in keeping with what we've done in the past, and in absolute value, growing almost €14 million.

A growth in revenue a bit more than 5%, gross margin is growing as well and growing more than expected, which means that revenue is turned into profit. If you start with gross margin, that's the difference between the selling price and direct costs, that is the price of land and also construction costs.

We have good control of our selling prices. We sell quickly and we sell at the right price at the right place.

William's in charge of marketing and the selling of these units, and he's talked about the tools that we use to sell quickly. Apart from that as well, we are really very responsive and work in field.

We have 150 projects that we manage daily, and we collect the data very quickly and we make the decisions very quickly to adjust our prices upwards or downwards, by the way. This really explains why at any moment in time we can adapt and we can respond swiftly.

We also have good control of land costs. Nothing new, we always fight for the best price when we buy land so that then we can develop the best products, and then the construction costs are under control.

Gross margin plus €14 million, and then if you look at operating expenses, €130 million, therefore slight increase. In absolute value, the increase is not as quick as the gross margin increase.

At the end of the day, that means that we have an operating income €91 million, therefore up €10 million more or less to reach a bit more than 8%. The guidance bracket was between 7.5 and 8 at the beginning of the year, we're slightly doing better than the upper part of the bracket.

Gross margin €14 million, and operating expenses, they're growing, but not as fast as they could have, and therefore €10 million for the operating income, which means that the improvement in gross margin is turned into a good profit. Well, 75% of this is seen in the profit level.

Then if you look at current operating margin, operating margin is in line with the previous years. Nothing special to say about this really.

Then let us have a look again. The financial expenses are going down, but that's quite consistent because we've reimbursed the €100 million PP.

Mechanically there's therefore a decrease in financial expenses that you can see here are mainly financial expenses that include the noncash financial expenses, which is the result of our IFRS computing, the rents that are restated in financial expenses, etc. and so on and so forth.

That means €10 million more or less. If we set aside these aspects that are bookkeeping aspects, financial expenses would be equal to zero.

Then if we look at taxes, we paid the normal tax, which mirrors our profit, and then the earnings from associates is going down, and we have co-promotional offers, but fewer than we had in the past, we have a better management of the projects we develop at present. Then if we look at working capital requirement, WCR, which is the main element on our balance sheet, is still negative, -€214.7 million, therefore a decrease, but historically it's always been low.

If we were to look only at the WCR for the housing business, we would have a rate which would be at 12 or 13%. Usually speaking, we say that housing is a business that has a working capital requirement between 10 and 15% in our company, Kaufman.

It's the same level more or less. Then €54.2 million, a slight increase versus last year's, and therefore, even though the general environment is not really buoyant, our net income is rather good.

Let's continue with the balance sheet. Once we've looked at the WCR, we can have a look at our equity, €238 million, and shareholders' equity is stable from one year to the next.

€54 million is our operating income, and we've paid out dividends as well for 2024, paid in May 2025 to the tune of €43 million, therefore again quite stable. Then the debt, well, that's net cash, €319 million, therefore a slight decrease compared to '24, but still very high.

We might have questions on that. Financial structure is therefore very solid.

With that, we can look into the future in a bright way. Then something else which is important, since we were talking about working capital requirement in WCR, there are inventories, they're stable, €377 million at the end of '25.

What's interesting is that the inventories on mature projects or products, that is six months before we deliver them, they represent hardly €50 million, divided by two in a period of a year or 12 months. It really shows that we know how to manage our projects, sell them very quickly, and be responsive.

We have a good management of our inventories, and in the inventories we have new projects that correspond to the selling activity of ours over the past 12 months. Then if we look at the financial structure, no more gross debt, if I can say, we've reimbursed the €100 million PP line in May.

This is a nonissue because we have a net cash position which is quite positive, and should we need it if tomorrow there's an opportunity, who knows, we have an RCF line that we can draw from, a three-year maturity. It's undrawn for the time being, and we could draw from the line when we want.

Of course, we meet all of our covenants. A few more information, that's what Fitch said about us, the BBB-, that is investment grade for Kaufman, I think it's been five years in a row.

Bertrand was talking about the CDP rating that we got. In the top four, we're in the top four.

There's no difference more or less if you look at our nonfinancial performance, environmental performance, and financial performance. The two can go together, and this is what we're doing.

Kaufman's been doing this for years. Then WCR and financial debt, as you can see, our equity, shareholders' equity is at a stable level.

It's been the case for the past four years. The payout or distribution rather policy is something you're familiar with.

Our operating income is turned into cash. We convert this into cash because we have a good control of our WCR, and therefore we can have a distribution or payout policy which is good for the shareholders.

In a general way, it's rather high, and it's something we do repeatedly over the past five years, and it even started before that in 2016 in absolute values. You have the numbers on the slide.

What we can say for 2025 is that 2025 met our guidance in terms of profit level. The level that we've reached is very much in keeping with the past performance of the group.

Yet if you look at the market, the housing market was halved in terms of volumes over the past four years, and commercial housing units today is a market which is not buoyant at all. The Marseille project that David was talking about was one of the only two projects that was signed off in 2025, which means that even though the market is a bit dull, Kaufman has a good performance, stable over time.

At the end of the year, we have a cash position which is really good, and a land reserve which is up, 32,000 housing units, therefore the equivalent of more than five years of business, and the backlog €2.4 billion, including €400 million for the commercial housing units, therefore €2 billion for the housing units, which gives us good visibility for the quarters to come. There we are.

I hand over to Nordine again for the outlook.

Thank you, Bruno. Before we answer your questions, as you could see this morning in the press release, we announced a turnover that will be stable in 2026, comparable with that of 2025, current operating income or profit margin of approximately 8%, and obviously the net cash should remain positive after factoring in the payment of a dividend for 2025 that will be, obviously, subject to approval by the AGM in May, and the dividend would be €2.2 per share.

Now is time for your questions. We're going to begin with questions from people in the room, and we're going to ask you to raise your hand and wait until you have the mic in order to ask your questions so that people online can also hear the question.

Then we'll move to questions asked by people online. Marjolaine Fremiot, BNP Paribas.

First question, regarding the building permits, it seems that there's a slight increase. How do you see this?

Do you think that this is going to last after the municipal elections? Was this just because people are catching up on the permits that were not issued during the mandate of Also, regarding the Jeanbrun scheme, how long is it going to take to be implemented in your view?

It might be a bit more complicated than other fiscal schemes. Do you think it will be implemented end of 2026 or starting 2027?

What are your assumptions here? Now regarding commercial real estate, apparently you are more optimistic regarding midterm outlook.

Your order book is €400 million, but then you'll have the Austerlitz project very soon. How are you going to rebound with regards to your commercial business and how is this going to impact your revenues in 2026?

Thank you. Regarding the first question on building permits, as was said earlier on, the fact that things are gaining momentum before the municipal elections, in my view, is due to the fact that people are now eventually realizing that it is urgent to start issuing building permits again.

We've reached a low point. Things are going to last for some time.

Not that we need to reach exceptional volumes anytime soon, not that we're going to build 400,000 units next year, but people are now realizing that things have to change. A part was seeing as being good not to be building any new units, but now gradually people are now perceiving this as being actually negative.

The fact that no new units are being built means that everyone is being impacted by this problem. Until now, those who had an apartment or a house were quite happy with their personal situation.

They were against the building of new units. Now you have new generations of people who have a unit, have an apartment or house, and are realizing that this is bad for their own children.

When your child was 10 years old, you didn't care about this, but now that your child is 20 years old, this is becoming more of a problem. People are seeing things differently, but it will take time.

It will take some time before everything changes. Obviously with the disappearance of the taxe d'habitation, this housing tax that hasn't been offset by the government, we'll have to wait and see how things evolve.

Now with this new scheme, you have this LMN status that is being kept. It is robust.

It is a proven scheme. There haven't really been any changes compared with the Pinel scheme.

It's quite stable over time, and this is really good. This scheme actually only means that real estate investment is now regulated by common law.

There are going to be ceilings, etc. It's going to take time again before this is being adopted, fully adopted by investors and by buyers.

I do not think that this will have a huge impact on our housing orders, not immediately, but over time. One of the positive aspects of this scheme is that it's not going to lead to major price increases.

For those who have been listening to us for some time now, I'm really against a scheme, any scheme, that will turn housing projects into pure investment projects, because we're used to have customers, not us, because people who buy Kaufman & Broad, they would actually buy housing units, but you would have other companies who didn't have any architects, and what they would sell were products that were similar to life insurance, really. Buyers wouldn't even go and see where the units were being built, and this has had a very negative impact on the price of land, etc.

I feel it's really good that this scheme has no longer there, and this new scheme is much, much better because the quality of the housing products is much more valued, and it's about valorizing revenues and also investing. It's not just about taxes.

When we build office buildings, we only build office buildings once we've sold the projects. We're going to continue and look for the right customers.

Be it Austerlitz or the Marseille project for the EDF head office, well in both cases, the investors are going to use those buildings. They've acquired buildings that they are actually going to use, which is very good for us because they're going to be owners, occupier.

They're going to occupy the buildings also. You can also have other types of investors that will then look for users.

We almost no longer have pure investors who will make an acquisition and then look for potential occupiers or people going to rent the building. We are seeing the situation evolve in France, very little investment made in office buildings in the past years.

Now when it comes to EDF, they need to man their teams and need to hire people. If you want to hire engineers, but also other kinds of people, they are competing with other companies that have the possibility to house these people properly, you need to have an effective attractive working conditions, and the offices are part of those working conditions.

This is a market that can be developed. EDF is an example, but we are not going to do any projections because those kind of projects are rather large and means that we need some time to develop them properly.

I think I've answered all three questions, or maybe yes? Good.

No more questions in the room? We're going to move on to questions from participants online.

If you want to ask a question, please dial *1. No questions for now.

Bruno, are you going to be our host for the tour? Yes, very briefly, we've organized a tour of the Austerlitz site.

You've seen a few views of the project. This tour will be headed by David, who is very familiar with this project because he's been the one promoting, working on this project for the past six or seven years.

It all started in 2014, actually. Those are truly long-term projects, and he will also be able to answer any questions you might have during the tour of this Austerlitz site.

We're going to leave at 10:00 a.m. A bus will take us there.

Unless you want to use the Metro Line 1, obviously you can do so if you want to. We will begin the tour at 11:00 and end the tour at 12:00 noon.

Thank you, everyone. Have a good day.