Message from the Chairman
Dear Shareholders,
2009 was a year of transition. The housing market, supported by government measures designed for first-time buyers and iinvestors, showed positive signs while the commercial real estate market continued to deteriorate.
2010 should be a better year, despite an economic and social context that continues to be difficult.
Kaufman & Broad approaches 2010 with a great deal of determination and a desire to resume growth in the major cities of France and to consolidate its financial position.
Guy Nafilyan, Chairman and Chief Executive Officer
Values
TRUST
Our business is built on trust. For nearly 40 years, we have forged our reputation by helping customers become homeowners. Buying a home is often the biggest investment people ever make, and their happiness and quality of life depend on it. Making people's dreams come true is something we take very seriously. Our customers, like our shareholders, recognize that with the Kaufman & Broad name, they're investing in something that will last.
INNOVATION
In our business, the spirit of innovation is the ability to constantly imagine new ways of living. By listening carefully to our customers, we have learned to anticipate their needs and identify emerging lifestyle and workstyle trends. This has helped us define products that have become benchmarks in the industry. We've designed new concepts, for example, to meet the desire for more light, space and comfort. Similarly, we've added on an extra room in response to the growing importance of the home computer. We also have a showroom where customers can personalize their homes.
EXCELLENCE
We are dedicated to giving customers superior quality and perfection in every detail, from home design and location to services and customer assistance. From the moment customers come in our door to the day they walk into their new homes, we do everything we can to make their dreams come true. This is the spirit that drives us to always do more for our customers and our shareholders.
Strategy
The growth we’ve enjoyed since 2000 has been in line with our objectives and foreshadows our goals for 2010. The five key drivers of our current success are also serving as solid foundations for the future.
Building profitable growth
Without profitability, there can be no growth.
Our development has been underpinned by the right strategic choices, operational excellence, attractive products, satisfied customers and the commitment of our employees.
Developing an effective business model
In a world undergoing deep-seated change, a successful business model is a company’s key strength and ours is a major source of competitive advantage.
As a builder-developer, we manage the entire real estate chain, from acquiring land and designing products to supervising construction, marketing and delivering homes, and providing customer service. All of these measures are designed to ensure that we achieve our objectives while minimizing risk, both in housing, our core business, and in commercial property.
Leveraging a strong brand
A powerful brand also drives faster growth.
Today, the Kaufman & Broad name stands for the highest standards of professionalism and innovation, and we’re widely recognized for our quality.
Selecting strategic locations
In a highly fragmented industry, choosing the right locations is another driver of our successful, rapid growth.
A leading developer-builder in the Ile-de-France region since its founding, Kaufman & Broad has established a nationwide presence in just a few years, primarily by closely following major growth and development trends in French society.
A leading developer-builder in the Ile-de-France region since its founding, Kaufman & Broad has established a nationwide presence in just a few years, primarily by closely following major growth and development trends in French society.
Our development outside the Greater Paris area focuses on large cities that offer stable, profitable, dynamic markets.
Anticipating changing social trends
To maintain its leadership, a company must constantly anticipate emerging market trends.
A fundamental factor shaping our future is the significant inflow of French and other Europeans to France’s Atlantic and Mediterranean shores, a trend that is creating new, long-term demand in these regions.
Staying attuned to social trends has enabled us to respond to emerging demand for student residences and apartment hotels. As a result, we’re building some in Lyon, Marseille, Nice and Toulouse.