Good morning everyone, and welcome to the presentation of the Q1 2026 first quarter results. Before we dive into today's presentation, we'd like to let you know that we'll first answer questions asked orally and then questions asked online.

You may ask your questions in the question box in the webcast if you want to ask questions online. I will now hand over the floor to the CEO, Nordine Hachemi, and to Bruno Coche, who is the CFO.

You have the floor, gentlemen.

Good morning, everyone. Good morning.

Thank you for being here today for our Q1 results presentation at Kaufman & Broad. As the fiscal year—or the quarter begins on the 1st of December and ends on the 28th of February.

You all have received the press release and also the PowerPoint presentation that I will use to make my presentation. Bruno and David will also speak based on this presentation.

Let's move to the first slide. You're all very familiar with this dashboard.

We present it at each quarter. It gives you the main parameters to describe our business in mid and long-term.

The first parameter is the land portfolio, which gives us an overview of planned activity. As you can see, we are beginning to build our land portfolio again, and we have a 4% growth forecast.

It's not shown on the slide here, but this is our forecast for the quarter compared with 2025. Housing orders also increasing.

They're increasing slightly in volume, they're going down in value. We'll talk about this decrease in value in a few moments, but this is nothing to be concerned about.

It's just a quarter, and those orders can be impacted by several projects that are put up for sale, that are being marketed, and depending on what is being sold, this is going to impact the value and the type of orders. Now, take-up rate, this is a very important indicator.

This take-up rate is the time that we need or that we would need to sell our entire offer if we were not to have new projects. This gives you an idea of the fact that we're able to renew our offer very regularly.

Then you have the backlog that is down, and this is due to the progress made with the Austerlitz project for commercial properties, and it's rather stable for the housing sector. In total, we have €2.036 billion.

Now, if we have a look at the next slide, what can we say with regards to the housing market? That's for the first quarter, once more.

It doesn't necessarily take into account all the variations and the volatility that we might see in the upcoming months due to current geopolitical events. What we've seen, and we already mentioned this in January, for the first time, this is probably the most encouraging sign, elected officials, local mayors, started to increase the number of permits or building permits issued before municipal elections.

If you have a look at the graph, you will see that in the past, mayors used to issue fewer building permits before the municipal elections because they thought this would be negatively perceived by the people, and this would negatively impact the the votes and that they wouldn't be reelected. This time, things were different.

What we see is that we have more permits that were issued. On slide 5, you will see that more than 2/3 of mayors and local officials said during their campaign that it was important to build housing units.

This is new and it's important because we had reached such a low point that people were being negatively impacted. They were concerned.

It was difficult to find a place to live for them or for their children. In the past, people would say, "I will stop issuing building permits.

I will stop building new buildings." This was one of the things that were said, especially at during the previous elections, just after COVID, people said for environmental reasons, we shouldn't build new housing units.

Things have changed now. Mayors are now really being more positive towards building new housing units.

They tend to reason differently now. As for social housing, expectations are still quite high.

That's for housing and the positive aspect. Now, as a reminder, now if you have a look at the next slide, in order to build housing, you need building permits.

Those need to be issued by mayors, but then you need to have affordable costs so that people can buy those units. To do this, there are two main criteria: the cost of money, because people take on a loan, mortgage, to buy those units, and interest rates are obviously a very important factor.

1% interest rate is -5% to 10% in purchasing power for our clients because salaries are not increasing as much as they are in other countries. In some countries, when you have more inflation, salaries go up also, but this is not necessarily the case in France.

You had in December 2023 a high level on a a peak. Then they went down.

Interest rates went down. They seem to be rather stable, but we don't know whether this will remain that way because of the current crisis, because of the current situation.

We cannot say whether interest rates are going to go up again or not. This is what we said in the communique.

We haven't seen any direct impact on interest rates for now. Banks continue to provide rather stable interest rate.

If you have a look at the next slide, you will see that as of today, this is slide 7, no, sorry, inflation, we haven't seen any impact on construction costs yet, but usually it begins with the main construction works, and then you have a trickle-down effect on other trades. We haven't seen any negative impact of the current international crisis yet on our business, but things could change.

I will now hand over the floor to David Laurent, who is going to talk about our activity.

Thank you, Nordine. Good morning, everyone.

I will say a few words to what Nordine has already presented. I will talk about housing first.

We were looking at the orders, comparing Q1 in 2026 with Q1 2025. You now have here the numbers for a 12-month rolling period, +2%, whereas according to some market estimates, they are faced with a -15% decrease.

Take-up period is still quite good, 4.9 months, that's for our commercial offer, compared with 21 months on the market. The take-up period is calculated based on the commercial offer at the end of the period, and this is compared with the number of orders for the same period.

As you can see, there is a slight increase, up from 3.8, reaching 4.9 months. It's still very, very low, and this is due to the fact that our commercial offer is progressing, which is quite good.

You will also see that our commercial offer is in line with our clients' expectations, also in line with market expectations. With this take-up rate of 4.9 months, we are able to say that we've been able to renew our commercial offer.

We are in attractive locations, and we're able to offer products that are in line with the purchasing power of our clients. Now for the customer breakdown, if compared with 2026, Q1 2026 compared with Q1 2025, in value, it's almost identical, and volumes, +4 points for investors and -3 points for first-time buyers.

Now, regarding our land portfolio, that's the plots that we have, the plots for which we have an agreement with land owners, or specific purchasing agreements, and we are now being more selective when we add new land to this portfolio. At first, this led to a decrease in this land portfolio, but we are now seeing this number go up again, +4%, and we have approximately 6 years of business before us, and 87% of those lots are in high-demand areas.

Now if you have a look at the backlog, the backlog is quite stable compared with 2025 and 2025. It's identical to 2019, more than two years of business here, and this provides us with a good outlook.

We intend to present you with our planned recognition of revenue for the Austerlitz project. No changes here.

The project is progressing as planned, and nothing has changed since the end of January 2026 presentation, recognition 19% of the revenue in 2026, and the remaining recognition in 2027 when the product will be delivered. I will now hand over the floor to Bruno Coche.

You've just had the main financial information in the communique that was released yesterday evening. First, let's begin with our revenue, that's page 16.

So €235.8 million is for our revenue, down compared with last year, -€15 million approximately. This was expected.

It was in our forecast for the first quarter, bearing in mind that this decrease is due to decrease in the housing sector. So €176.7 million, down from €205.6 million.

Now, with regards to commercial property, +€15 million, reaching €55.3 million. Once more, we had planned those changes.

Now, regarding the gross margin, approximately €50 million, slightly up in absolute terms compared with last year, and +1.7%, more than 21%, reaching more than 21%. This is mainly due to the housing sector.

Housing sector is down in terms of revenues, but that contributes to the gross margin more. This is due to the fact that we focused on profitability and cash rather than on volumes, and it's also due to the fact that we're being more selective right from the outset when we launch new projects.

Our land portfolio is a high-quality portfolio. We have transformed it, and we are fully aligned with the economic situation.

We have projects that sell well, that sell quickly, and they do not require any major commercial efforts, and you see this in our revenues. Let us continue with the income, and let's have a look at the current operating income.

The operating expenses, they're up, except for provisions that were set aside for different reasons. In any case, by and large, if you look at the operating, the current operating income, the COI, it's more or less stable at €19 million.

In terms of rates, it's a bit more than 8% of our revenues, in line with the guidance, which means an improvement from last year's. Here again, there's no surprise given what we anticipated several months ago.

Then on page 18, we're going to have a look at the EBIT rate and the evolution over the past few years. It's improved.

Maybe if you listened carefully to Nordine, maybe you saw the EBIT rate starting from 2019, and as you can see, it's constant regardless of exogenous events such as COVID, Ukraine, etc., and what have you. Current operating margin is quite satisfactory.

Then if we continue with the numbers, expenses of net debt is almost zero, and in fact, it's financial expenses due to IFRS standards, that is on the rents for the Kaufman headquarters, and also because we know that there are postponements for the payment of the land of Austerlitz. This payment will be in 2027, totaling €200 million, which will be spent for Austerlitz.

Net attributable income is €11.8 million, therefore almost stable. We're satisfied and not surprised.

Then let's have a look at the balance sheet and WCR to start with. As you can see, it's strongly negative at €191.5 million.

At the end of November, we were at more or less €215 million, therefore a slight deterioration. Here again, the WCR is very strongly negatively marked.

The decrease is due to the case of Austerlitz. Yet if you look at WCR for housing, it's stable at a 12-month interval.

It really shows that we're doing well on the commercial front. If you look at the stocks of units for the projects being built, there's a decrease of €30 million over a year, which explains 100% of the decrease of the amount of stocks on the balance sheet.

Now let's have a look at the full balance sheet. You have equity, €251.2 million, almost stable from one year to the next.

Here again, the financial structure of the group is such that we don't need to say much. We don't have any gross debt.

Then shareholders' equity, €251.2 million, and net cash at €314 million, to which we could add the RCF line, page 22, which means total financial capacity, €514 million, which means that Kaufman has no debts, no covenants to meet in the quarters to come, and therefore we have enough cash on the balance sheet or we could draw from these RCF lines and we could mobilize more than €500 million immediately, which means we have very good visibility for the future. Then changes in equity and net financial debt, stability of equity and net cash position has been positive for a number of quarters now.

Finally, as far as the outlook is concerned, at the end of the first quarter, we'll confirm the guidance for the year, that is group's revenue is expected to be more or less stable versus fiscal year '25, EBIT rate will be nearing 8%, and net cash will remain positive at the end of the year and after paying out a dividend totaling €2.2, which will have to be approved on the 5th of May during the general meeting. These were the main numbers.

I'll hand over to Nordine again.

Thank you, Bruno. Now we'll hand over to the moderator so that we can organize the Q&A.

Thank you. Good morning.

Thank you for this presentation. I have two questions, if I may.

The first one, your guidance that you're maintaining. Profit is good during Q1, but if you look at the growth for the top line, well, there's a bit of a mismatch compared to what you were saying in the guidance.

What about the rest of the year? Will the revenue grow on the basis of non-managed residential market or portfolio and therefore an erosion of your margin?

The second question is housing orders. Could you tell us more about these orders apart from managed residences and what the end of the year is going to look like?

Finally, what about working capital requirement? How is it going to evolve over the year?

Thank you for these questions. Here again, this is only one quarter, and this is where we have the lowest level of business during the year.

As we keep on saying, you can't arrive at any conclusions after one quarter, and you can't say anything about revenues. It all depends, for instance, on the weather conditions.

This could slow down the construction work, and as was the case this year, we had 1.5 months of rain. Don't try and come to any conclusions from this quarter.

The only thing we're saying is that we're going to confirm the guidance. Far, we've always walked the talk, and well, except for two cases: the health crisis in 2022 when we changed the guidance because there was a lockdown for six months, yet we had a profit that year.

That's on page 7, I think. Look at our past economic performance.

We can weather all the storms, and we've always been profitable, and we'll continue to be profitable this year. Now then, if you look at the world, global events, who knows what's going to happen?

Who knows about the impact on the price of energy, impact on inflation? What about the ECB?

What about their policy? I don't know.

If you have the answer, please tell me. Today, frankly, I don't know what's going to happen in the months to come.

We'd need to know more about these developments, these events. These are the reasons why we might have to amend or correct a number of things.

If you look at the economic performance of our group in general, and if you look at our earnings, we have a good level of confidence. Then you've asked a question about orders and the order mix.

During Q1, we started opening managed housing residences, and therefore, they were weighted quite a lot. We had quite a lot of projects such as this one that is for investors, and the amounts were quite low, €70,000 before VAT, I think, for a student's room.

Usually for the first-time buyers, it's more than €200,000. The impact of these residences is such that even though the volumes were up, the impact was lower on the orders.

If you look at revenue, it was not as much as last year during the same period. Then what about the buyers' behaviors?

What we saw is that until September or October 2025, they were back, and then they thought, "We will wait and see." That was due to the budget crisis.

Now, we can, as I said, weather the storms, the different crises. Then nobody knew about the budget in France, and therefore people thought, and the clients thought, "We'll wait and see."

The government and the parliament were talking about taxes here and there everywhere. People were afraid of being taxed heavily, for the unit owners.

Then since January, we've had quite an interesting number of contacts. Therefore now we want to have more commercial openings, and we'll have to see what we're going to do in the future, because if the international events such as the crisis in the Middle East, we'll have to see if these have impacts on the behaviors of buyers, psychologically speaking.

As you have to trust that things are going to be okay in the future if you want to buy a unit and you shouldn't be afraid of being unemployed. Psychologically, it's very important for people.

I think I've answered all of your questions. Oh, no.

Working capital requirement, Bruno.

Now, what we've been saying for quarters is that the Austerlitz project, at the end of 2027, we'll have to pay for the land, and we have €200 million cash that'll be used up until it's delivered. If you look at WCR, it's negative, -€200 million more or less, and the guidance for the end of the year has been given to you.

Net cash will remain positive. With this, I think you know what's going to happen.

What's important is that if you look at the housing business, WCR is within the usual brackets, and it's been the case for more than 10 years, that is between 10% and 15%. It really shows that we have good control over the different parameters for the group.

As far as this is concerned and WCR is concerned, I think you can do the math. You will see what the trend is going to look like.

As we speak, if you look at our financial capacity, it's more or less €500 million, which means that we're quite confident.

Good. Thank you.

Hello. The gross margin rate has improved over Q1.

Do you think that will be repeated, or is it due to your housing mix? Could you tell us more about this, please?

Could you give us more color as well as to the deployment of the [Jeanbrun?] scheme?

I know it's only the beginning, but what do you think about this scheme? Third question, social housing, which represents a high percentage of orders in 2025.

What about 2026? Do you think that will still have a high level of demand?

Finally, the increase in construction permits that you saw at the end of '25 and beginning of '26, is there windfall effect? Will this tend to normalize, or do you think this will last during the financial year?

Bruno will start.

The gross margin rate during Q1, it's more than 20%, and that's due mainly to the housing projects and their gross margin rate. That's because we've launched many projects over the past 18 months after the crisis in Ukraine and therefore a positive contribution with a rate at 19%, gross margin rate 19%.

If things remain as they are, this'll have a mechanical impact on the bottom line. We think this is going to continue in the quarters to come on a like-for-like basis if the economic parameters stay the same.

That we're very careful about recognizing the margins and the revenue over time. Anyway, we think we have enough leeway and we have enough reasons to remain optimistic and stick to our guidance with an EBIT rate which is the result of the gross margin rate and operating expenses, and therefore we think we're going to be close to 8%.

As far as operating expenses are concerned, we don't think they're going to increase in the quarters to come if the economic environment remains the same.

Thank you very much, Bruno. Now, I'll answer the other questions, Marie-Line.

Regarding the [Jeanbrun?] scheme, as I said at the beginning, this scheme, it's not going to deeply change the way buyers behave.

It's not going to harm the business, no, but it really addresses more experienced buyers, investors, because they will be able to amortize the investment. It's a bit complicated, it's a scheme that's a bit complex, and it requires many explanations.

As I said, we had very few orders using this scheme this quarter, maybe 30 or so. It will be part of the landscape gradually, but the most important aspect is that it doesn't trigger any inflation regards to the price of land, although we still see of some of our competitors that are totally disconnected from the reality, and some they make decisions that are not good in the long term.

In our case, I believe that we've seen a decrease in the number of building permits, and people are now realizing that it is necessary to build housing, to build more units. This is an answer to the social housing question.

I don't think there will be any peak when it comes to the number of building permits issued. I think we're going to reach a figure that will be much higher than the one that we had in the past, but it should remain stable, and this is much better than when we have huge variations.

I believe that this will be one of the main topics during the campaign prior to the presidential election. It will also, I'm sure, be time to realize once more that it's important to house our citizens.

It's also good for the environment because we build units that have a low environmental impact, and it also creates jobs. What I anticipate is that many promises are going to be made, and maybe buyers will have a bit of this wait-and-see approach until they know exactly what kind of support measures will be implemented.

With regards to social housing, I think that approximately 70% of the population in France is eligible and could access social housing. Many acquisitions were made during the COVID crisis because this is what government asked them to do.

They supported developers that were faced with financial difficulties. They acquired some of their projects in order to support them.

I believe that the need for social housing will remain. The demand remains high.

Even though some stakeholders seem to have more of an erratic behavior, I still feel that owners, be they private or public owners, are now seeing that you cannot simply make empty promises. We remain very selective, but we are seeing the competitive landscape becoming more healthy in a sense, and this is good for everyone.

I don't know if I answered all of your questions. ]:

No, thank you, I'm good. Thank you.

Good morning. I hope you hear me well.

I have three questions. The first with regards to the change in the number of orders.

Any change since the start of the war in Iran, March, March-April, or is the situation the same as it was before the beginning of the war? Now, second question has to do with another aspect.

We think that there might be an increase in the cost of construction materials in the future, how do you anticipate this, how are you going to handle this? Third question, commercial real estate.

Is the market still flat, or do you see any new projects in your pipeline? Thank you.

The way our buyers behave, for now, we are not seeing any impact on their behaviors, especially that of first-time buyers. We look at contacts when we start our teasing phase, when we have new projects in mind, and we are seeing that people are interested in our projects.

This is not having an impact on the behavior of buyers. Now, with regards to construction materials, we are not seeing any impact right now, but there's going to be one, definitely so, especially for the major construction works because you need lots of energy to do concrete, cement, and the iron parts, all this consumes lots of energy.

The heavy equipment also uses a lot of energy. We are mostly going to see an impact, but those companies are not overwhelmed with contracts.

This could balance this, could offset this, but so we'll have to make sure that things are good for everyone. The fact that there is no impact right now doesn't mean that there's not going to be an impact in the future.

What we do is that in-house, obviously, we have a very precise and in-depth consultation processes. Before we buy a piece of land, we have an acquisition committee, and we make sure that we have firm offers before we purchase the land.

We make sure that we are aware of the construction costs before the land is being purchased, and this means that we avoid losing any money. We really have a very good control over our costs.

Then we set up provisions. It's in a sense a bit of a in-house insurance scheme, and everyone has a 3% provision on building costs in order to make sure that any excess costs could be covered.

This means that 80% of our projects didn't use those 3% this provision, but then we have 20% of our projects that will be faced with additional costs, but those costs will be covered by this in-house internal insurance scheme. We have now increased this percentage to 5%.

We behave like an insurance company, and we make sure that we can cover any unexpected additional costs. This is the way we deal with this in-house, but we cannot be taken by surprise.

If construction costs are to go up, well, if they're too high, we simply won't go for the project and we'll decide not to buy the piece of land. Maybe the current owner will decide not to lower the price, but we will make sure on our side that we do not validate all the construction costs before we sign the agreement and buy the piece of land.

What about the question on commercial business? Do you want to answer this question, David?

Yes, I will. During the first quarter, the global investment market that includes creation of new units and also the refurbishment of old units was a market that wasn't very active.

People were waiting to see what would happen. The outlook was decreased ECB rates back in 2025, but because of the geopolitical situation, things are not that certain.

Investors are waiting to see how things are going to turn out before they make any decision. They want situation to stabilize first.

Now, when it comes to potential outlook, I will talk about what we presented in January, back in January. Outside of Paris, new offers are not so numerous.

We are seeing users who want to discuss turnkey operations. It doesn't mean that we're going to get those contracts, but this is something that we are seeing.

We still have the Austerlitz project that we discuss regularly and provide you with updates on a regular basis. Then you have the Marseille project, and this provides us with a good visibility, €350 million in backlog.

We talked about this in the press release, we have a certain number of logistics project that are currently being marketed.

Thank you. Thank you for those very precise answers.

One last question, if I may. I'm always very surprised, and in a positive way, about the difference between your orders and the number of orders on the market.

How can you explain this? Obviously, it has to deal with your offers, but do you think that some players are still experiencing financial difficulties and they are postponing some of their projects, or are the reasons not that visible?

Any changes in what you see compared with what you said in the past?

Indeed, if you add up the losses of the main players, well, we could obviously think that some shareholders or managers realized that the price of land was just too high. This is what we kept saying, prices for land plots were just unreasonably high and that those prices were being offset by decreased interest rates.

During those meetings, I kept telling you that we would rather not play that game because we would depend too much on decisions made by others. Those competitors made a lot of orders, but they paid too much.

Because of increased rates, this led to huge losses, millions of euros, and now they are paying the price for this. We are good customers, and current landowners, be they private owners, public owners, what they're seeing is that we are a solid company.

We have a very good image. We are a developer that really is seen as a serious player because we make sure that our projects are completed.

Thank you.

All good. Thank you very much for being with us this morning.

We'll meet again at the beginning of July, on the 9th of July, for the half-year results. Have a lovely day.