Les Nouveaux Constructeurs : Quarterly Report for the Nine Months Ended September 30, 2013

Regulatory News:

LES NOUVEAUX CONSTRUCTEURS (Paris:LNC), a leading residential and office real estate developer, today released its report for the nine months ended September 30, 2013.

Moïse Mitterrand, Chairman of the Management Board, said:

"During the first nine months of 2013, our revenue increased by 22% and, in an environment shaped by a slowdown in the pace of sales, we managed to limit the decline in orders, particularly in France, thanks to a broad product portfolio aligned with demand. Our considerable backlog offers us clear visibility over the months ahead. A large number of deliveries in Spain and Germany are scheduled for fourth-quarter 2013.”

REVENUE

LNC’s revenue for the nine months ended September 30, 2013 totaled €392.4 million, versus €320.8 million in the same period of 2012, representing a 22% increase.

REVENUE BY OPERATING SEGMENT

In France, housing revenue for the first nine months of the year rose by 14% to €223 million, from €196 million for the same period in 2012. The rise was due to the increase in technical production of housing that was a result of strong sales and marketing operations in late 2011.

In Spain, revenue amounted to €5.2 million, versus €16.9 million in the first nine months of 2012. A total of 28 homes have been delivered since January 1, 2013, compared with 94 units in the prior-year period, in line with a program completion calendar concentrated on the fourth quarter.

In Germany, Concept Bau reported revenue of €45.1 million for the first nine months, compared with €13.9 million for the same period in 2012. Since January 1, 2013, a total of 134 housing units have been delivered compared with 19 for the same period in 2012. The homes delivered in the first nine months of 2013 had lower average unit prices than those delivered in the prior-year period as most of the 2013 deliveries were sold in block.

Zapf’s nine-month revenue rose by 18% to €93.8 million, from €79.2 million in the year-earlier period. Two-thirds of revenue was generated by the garage business and one-third by Bau, which drove most of the €14.6 million increase in revenue between the two periods.

Commercial real estate revenue for the first nine months of the year totaled €25.3 million, versus €14.2 million for the same period of 2012. This amount corresponds to revenue recognized by the percentage of completion method on the building in Boulogne, which is scheduled for delivery in fourth-quarter 2013.

BUSINESS PERFORMANCE

During the first nine months of 2013, housing orders totaled €365 million, compared with €443 million in the prior-year period, a decline of 18%. They represented 1,545 homes in the first nine months of 2013, compared with 1,915 in the previous-year period, a volume decline of 19%.

TOTAL ORDERS

In France, nine-month housing orders contracted to €289 million, compared with €345 million in the first nine months of 2012. Most of the decline was in block sales because of delays in signings, with 89 block sales in the first nine months of the year, compared with 258 during the same period in 2012. The decline in sales to private buyers was less, involving 1,111 housing units compared with 1,183 in the prior-year period.

The product portfolio remained broad, especially because of the large number of new programs brought to market in late 2011. Although demand continued throughout the first nine months of 2013, sales office traffic declined and the pace of sales slowed. Buy-to-live sales represented nearly 78% of 2013 nine-month sales to private buyers, with buy-to-let sales accounting for the other 22%. At September 30, LNC had 70 programs on the market, compared with 65 a year earlier.

In Spain, orders for the first nine months totaled €44 million and 226 homes, an increase over the same period in 2012, when orders came to €35 million. In 2013, orders were mainly for affordably priced units, a product that is meeting with considerable success in the marketplace.

In Germany, orders from Concept Bau amounted to €20 million, a 46% decline from the €37 million recorded in the first nine months of 2012. During the period, the subsidiary booked 43 orders, compared with 108 in the same period in 2012. The decline was due to a temporary contraction in the product portfolio, in a market that is still buoyant and where selling prices are on the rise.

Following the reorganization and resizing of Zapf’s construction division, the business has resumed selective marketing and sales operations since the beginning of 2013. During the first nine months of the year, Zapf’s housing sales totaled €12 million, involving the construction of 76 homes. This was lower than in the prior-year period when sales totaled €26 million.

BACKLOG

At September 30, 2013, backlog stood at €748 million excluding VAT, generally stabled compared with year-end 2012. It represented nearly 15 months of business based on housing revenue over the past 12 months, compared with 16 months of business at December 31, 2012.

BACKLOG

In France, housing backlog stood at €528 million at end-September 2013, generally flat compared with December 31, 2012.

In Spain, backlog amounted to €97 million at September 30, 2013, up 56% from year-end 2012. The €35-million increase was due to the solid level of bookings and the small number of deliveries in the first nine months of the year.

In Germany, Concept Bau‘s backlog stood at €54 million at September 30, 2013, down 30% from year-end 2012 because of limited marketing operations in 2013.

Zapf’s backlog amounted to €63 million, up sharply compared with December 31, 2012. Of the total, €24 million was in the Bau Division, with 137 homes to be completed, and the remaining €39 million in the Garage Division (8,030 units).

LAND POTENTIAL

LNC’s land potential at September 30, 2013 amounted to a net €1,933 million, a slight increase of 7% from year-end 2012.

Housing land potential amounted to a net €1,673 million, corresponding to 7,423 units. This represented 33 months of business based on revenue over the past 12 months.

CONFIRMED LAND POTENTIAL

In France, housing land potential accounted for nearly 85% of total housing land potential. It amounted to €1,426 million at September 30, 2013, an increase of 7% compared with December 31, 2012, and represented 6,884 housing units, versus 6,536 units nine months earlier.

In Spain, land potential stood at 164 housing units at September 30, 2013, versus 223 units at year-end 2012. This low level corresponds to a "just-in-time” land purchase strategy.

In Germany, Concept Bau’s land potential amounted to €220 million at September 30, 2013, representing 375 units.

In Commercial real estate, land potential rose by 18% to €260 million. It is comprised of two programs in Montrouge and one in Chatenay-Malabry, which is currently being built.

OUTLOOK

Thanks to its more substantial backlog, Les Nouveaux Constructeurs has good visibility for the months ahead, in a challenging market environment.

In France, a strategic market where more than 85% of the Housing business’s land potential is now concentrated, Les Nouveaux Constructeurs intends to continue developing sales while remaining very vigilant to ensure that the product portfolio is aligned with demand and maintaining strict requirements with regard to land development.

In Spain, affordably priced housing program launches continue to be popular and backlog is on the rise. A major delivery program is scheduled for the fourth quarter.

In Germany, following a period of reorganization, Zapf’s construction division has taken new orders, focusing on standardized housing projects. However, it’s still not possible to completely rule out any risk of further construction defects being discovered or of revenues failing to adequately cover the subsidiary’s fixed costs.

FINANCIAL CALENDAR

• Fourth-quarter 2013 revenue report: Thursday, February 6, 2014, (before the opening of the NYSE-Euronext Paris stock exchange)

LES NOUVEAUX CONSTRUCTEURS

Les Nouveaux Constructeurs, founded by Olivier Mitterrand, is a leading developer of new housing, as well as offices, in France and two other European countries.
Since 1972, the Company has delivered nearly 60,000 apartments and single-family homes in France and abroad. It has an extensive presence in France, where its operations in the country’s six largest metropolitan areas and high-quality programs have made Les Nouveaux Constructeurs one of the most well known names in the industry.
Les Nouveaux Constructeurs ("LNC”) has been listed on the NYSE Euronext Paris, compartment C, since November 16, 2006 (ISIN: FR0004023208) and is included in the SBF 250 index.
All LNC press releases are posted on its website at: www.lesnouveauxconstructeurs.fr/fr/communiques

APPENDICES

QUARTERLY REVENUE - BY BUSINESS

AVERAGE UNIT PRICE – HOUSING ORDERS

^{(1) Including VAT of 7% or 19.6%. (2) Including VAT of 7% for first-time homebuyers. (3) No VAT.}

NUMBER OF HOUSING ORDERS, NET

QUARTERLY ORDERS BY BUSINESS

BACKLOG BY QUARTER (period end)

LAND POTENTIAL - HOUSING

Excluding commercial real estate

LAND POTENTIAL BY QUARTER (period end)

DISCLAIMER

The statements on which the Company objectives are based may contain forward-looking statements. Such forward-looking statements involve risks and uncertainties regarding the economic, financial, competitive, and regulatory environment and the completion of investment programs and asset transfers. In addition, the occurrence of certain risks [see chapter 4 in the Document de Référence registered with the French Stock Exchange Commission (AMF) under number D.13-0322] could affect the business of the Company and its financial performance. Moreover, the achievement of the objectives supposes the success of the marketing strategy of the Company (see chapter 6 of the Document de Référence). Therefore, the Company hereby makes no commitment nor gives any guarantee as to the fulfillment of objectives. The Company does not undertake to update any forward-looking statement subject to the respect of the principles of the permanent information as provided by articles 221-1 et seq. of the AMF’s general regulations.