LESNXCONSTRUCTEURS : Les Nouveaux Constructeurs - 2012 Business Review

Revenue up 9% year-on-year to ?572 million 31% decline in sales to ?568 million : down 27% at constant scope of consolidation Limited slowdown in housing sales in France : down 13% Serious operating difficulties in Zapf's construction division Land potential at ?1,800 million, up 25% vs. year-end 2011

Regulatory News:

LES NOUVEAUX CONSTRUCTEURS (Paris:LNC), a leading residential and commercial real estate developer, today released its business review for the year ended December 31, 2012.

KEY PERFORMANCE INDICATORS (in ? millions)		2012		2011		% change
Net revenue		572		524		+ 9%
Orders (including VAT)		568		821		- 31%
Backlog, net at Dec. 31		738		784		- 6%
Land potential, net at Dec. 31		1,800		1,441		+ 25%

Olivier Mitterrand, Chairman of the Management Board, said:

"2012 saw a slowdown in our sales in France. While no business recovery is expected, we nonetheless have satisfactory visibility for the months ahead, thanks in particular to a renewed product portfolio that is adapted to demand, solid backlog and our substantially strengthened land potential. Our 2012 performance was also impacted by the major difficulties encountered by our subsidiary Zapf's construction division. In a market environment shaped by a slowdown in the pace of sales, we are approaching 2013 with caution and remain highly vigilant as to the quality of our products and to their alignment with demand."

REVENUE

Revenue for the year ended December 31, 2012 totaled ?571.8 million, up 9% compared with the previous year.

REVENUE BY OPERATING SECTOR

In ? millions excl. VAT		2012		2011		% change
France		300.9		266.1		+13%
Spain		42.1		54.7		-23%
Germany		205.4		187.8		+9%
Of which Concept Bau		68.4		62.7		+9%
Of which Zapf		137.0		125.1		+10%
Other countries		0.6		8.3		-93%
TOTAL HOUSING		549.0		516.9		+6%
Commercial real estate		22.8		7.2		+217%
TOTAL		571.8		524.1		+9%

In France, housing revenue rose by 13% to ?300.9 million, from ?266.1 million in 2011. The rise was due to the increase in home building activity in 2010 and 2011, resulting from the earlier improvement in LNC's land potential, and to the consolidation of Cabrita, the Toulouse-based property developer, since August 1, 2011.

In Spain, revenue amounted to ?42.1 million, compared with ?54.7 million in 2011. Revenue was generated by the delivery of 238 homes in 2012, compared with 243 units in the prior year, as well as by the sale in 2011 of a lot that had been intentionally kept off the market. Of the total deliveries in 2012, 188 were affordably priced units and 50 were homes sold on the open market, most of them previously completed units.

In Germany, Concept Bau's revenue amounted to ?68.4 million, an increase of 9% over 2011. In 2012, a total of 149 homes were delivered, exactly the same number as in 2011 but at a higher average unit price.

Zapf's revenue rose by 10% to ?137 million, from ?125.1 million in the previous year. The prefabricated garage division, in which Zapf is the German leader with an approximately 20% market share, accounted for 60% of the subsidiary's business. Overall, 16,469 garages were delivered during the year, versus 15,251 in 2011, an 8% increase. Business in the construction division slowed considerably in 2012, with 233 homes delivered, compared with 313 in the previous year.

Revenue from commercial real estate totaled ?22.8 million. It came from the office building in Boulogne, which was sold to an investor in fourth-quarter 2011. Construction of the building began in early 2012.

BUSINESS PERFORMANCE

Total orders in 2012 amounted to ?568 million (including VAT) a 31% decline compared with 2011. Excluding the impact of the disposal of the Indonesia subsidiary, the decline was only 27%.

Housing orders totaled ?568 million, a decline of 25%. Orders concerned 2,465 apartments and houses, compared with 3,609 units in 2011 (3,161 excluding Indonesia). Orders in France in fourth-quarter 2012 were reduced by half compared with the prior-year period, when they had been exceptionally high because of the announced reduction in the Scellier tax incentive.

TOTAL ORDERS

In ? millions incl. VAT		2012		2011		% change
France		438		505		-13%
Of which individual homebuyers		352		419		-16%
Of which block sales		86		86		0%
Spain		52		44		+18%
Germany		78		164		-52%
Of which Concept Bau		52		100		-48%
Of which Zapf (excl. the garage business)		26		64		-59%
Other countries		0		40		NM
TOTAL HOUSING		568		753		-25%
Commercial real estate		0		68		NM
TOTAL		568		821		-31%

In France, orders amounted to ?438 million for 1,872 homes, versus ?505 million and 2,247 homes in 2011. This represented a decline of 13% in value and 17% in volume, in a nationwide market that contracted by around 30% during the year.

During the year, LNC maintained a broad product portfolio, thanks in particular to the many new programs launched in the past two years. Overall, 66 programs were on the market at December 31, 2012, versus 57 one year earlier. Demand continued throughout the year, although sales office traffic declined and the pace of sales slowed in the second half.

Sales to individual homebuyers amounted to ?352 million, or 80% of the total in value, with block sales accounting for the remainder, most of which involved sales to public housing developers.

Because of the reduction in the Scellier tax incentive and a wait-and-see attitude with regard to forthcoming tax changes, the percentage of sales to buy-to-let investors was sharply lower, accounting for 35% of sales to private buyers in 2012, compared with 57% in 2011 and 53% in 2010.

The decline was offset in particular by readjusting the product portfolio towards buy-to-live purchasers, who accounted for 65% of sales to private buyers in 2012, compared with 43% in the previous year, and for whom a special low-price offering was developed.

In Spain, orders rose by 18% to ?52 million (for 295 housing units), versus ?44 million (239 units) in 2011. They mainly concerned new programs for affordably priced apartments, a product that continues to meet with considerable success in the marketplace.

At year-end, Premier España had only 19 completed homes left unsold, compared with 46 at December 31, 2011 and 115 at December 31, 2010.

In Germany, orders booked by Concept Bau were considerably lower. This was due in particular to a sharply contracted product portfolio in 2012 when only 8 programs were on the market, compared with 11 during the previous year. As a result, 133 housing units were ordered in 2012, compared with 274 in 2011. The year-on-year comparison was even less favorable owing to the block sale of 79 units in Munich in early 2011.

Zapf's construction division experienced very significant operating difficulties during the year, which led to a major resizing of the business; practically no orders were booked in the second half of the year. As a result, housing orders declined to ?26 million and 165 housing units, from ?64 million and 401 units in the prior year.

The commercial real estate business booked no orders in 2012.

BACKLOG

At December 31, 2012, backlog stood at ?738 million (excluding VAT), down 6% from year-end 2011.

Housing backlog totaled ?710 million or 16 months of business based on housing revenue over the past 12 months, versus 17 months of business at year-end 2011.

BACKLOG AT 31 DECEMBER

In ? millions excl. VAT		2012		2011		% change
France		533		504		+6%
Spain		62		55		+13%
Germany		115		153		-25%
Of which Concept Bau		77		94		-18%
Of which Zapf		38		59		-35%
Other countries		0		21		NM
TOTAL HOUSING		710		733		-3%
Commercial real estate		28		51		-45%
TOTAL		738		784		-6%

In France, backlog at December 31, 2012 was up 6% over year-end 2011 at ?533 million. This limited increase reflected the balance between sales of new programs and deliveries of existing programs.

In Spain, backlog amounted to ?62 million at December 31, 2012, up 13% from one year earlier. It was comprised mainly of orders for affordably priced housing units.

In Germany, backlog at Concept Bau stood at ?77 million, down 18% from year-end 2011. During the fourth quarter, 130 homes were delivered, including 53 units in the high-profile Cosimastrasse program in Munich.

Zapf's backlog amounted to ?38 million at December 31, 2012, down 35% from one year earlier. Of the total, 42% is for the construction division, with 134 homes to be completed versus 251 one year earlier, and 58% is for the garages division (7,700 units).

Commercial real estate backlog comprises the office building in Boulogne, which was sold to an institutional investor in late 2011 and is currently being built.

LAND POTENTIAL

LNC's land potential at December 31, 2012 amounted to a net ?1,800 million, an increase of 25% from one year earlier.

Housing land potential amounted to a net ?1,580 million, corresponding to 7,168 units, versus 6,945 units at year-end 2011. This represented approximately 3 years of business based on revenue over the past 12 months.

CONFIRMED LAND POTENTIAL AT DECEMBER 31

In ? millions excl. VAT		2012		2011		% change
France		1,332		1,092		+22%
Spain		38		66		-42%
Germany		209		102		+105%
Of which Concept Bau		209		102		+105%
Of which Zapf		0		0		0%
Other countries		0		41		-100%
TOTAL HOUSING		1,580		1,301		+21%
Commercial real estate		220		140		+57%
TOTAL		1,800		1,441		+25%

In France, where nearly 85% of LNC's housing land potential is located, purchase selection criteria have been adapted more closely to recent market conditions. At December 31, 2012, housing land potential totaled ?1,332 million, a 22% increase from year-end 2011, thanks in particular to the large number of confirmed land purchase agreements in fourth-quarter 2012. This represents 6,536 units compared with 5,497 one year earlier.

In Spain, with 156 new units confirmed since the beginning of the year versus 295 sold, land potential was lower, totaling 233 units at December 31, 2012, compared with 358 at year-end 2011. At end-December 2012, LNC still had four lots in Spain that were intentionally being kept off the market, as well as two tranches of suspended operations.

In Germany, Concept Bau's land potential doubled to ?209 million at December 31, 2012, representing 409 housing units compared with 260 units at December 31, 2011.

In commercial real estate, the land potential amounted to ?220 million. It is comprised of two programs near Paris - in Montrouge and Chatenay Malabry - both of which are in the financial structuring and pre-sales phase.

OUTLOOK

In Germany, Zapf's construction division encountered serious operating difficulties in 2012. Recovery measures have been launched and restoring the division to health is one of LNC's priorities for 2013. Zapf's garage division, however, maintained its margins at a satisfactory level in 2012. As in the first half, Zapf is nonetheless expected to report a significant operating loss for second-half 2012.

Thanks to its substantial backlog and high-quality land potential, Les Nouveaux Constructeurs is approaching 2013 with adequate visibility but will continue to deploy a highly selective land development policy and to align the product portfolio with new market demand. Les Nouveaux Constructeurs will pursue its efforts to optimize marketing and technical production for programs currently underway while vigilantly tracking changes in the market.

FINANCIAL CALENDAR

• 2012 earnings report: Thursday, March 28, 2013, 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, Les Nouveaux Constructeurs 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 has been listed on NYSE Euronext Paris, compartment C, since November 16, 2006 (symbol: LNC; ISIN: FR0004023208).

All LNC press releases are posted on its website at: http://www.lesnouveauxconstructeurs.fr/fr/communiques

APPENDICES

QUARTERLY REVENUE - BY COUNTRY

In ? millions excl. VAT		2012								2011
		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
France (Housing)		55.2		82.8		57.9		104.9		50.3		65.0		56.4		94.4
France (Commercial real estate)		2.4		6.2		5.6		8.6		1.3		0.5		0.0		5.4
Spain		3.3		7.7		5.9		25.2		2.2		5.5		16.3		30.7
Germany (Concept Bau)		6.1		2.5		5.3		54.5		6.1		4.9		21.1		30.6
Germany (Zapf)		13.7		31.5		34		57.8		14.3		25.5		29.7		55.6
Other countries		0.3		0.3		0		0		0.6		1.8		0.9		5
TOTAL		81.0		131.0		108.8		251.0		74.8		103.2		124.4		221.7

AVERAGE UNIT PRICE - HOUSING ORDERS

In ? thousands incl. VAT		2012		2011		% change
France - including block sales(1)		234		225		+4%
France - excluding block sales(1)		245		241		+2%
Spain(2)		176		186		-5%
Germany(3)		261		242		+8%
Other countries(4)		0		90		-100%
LNC		230		209		+10%
LNC (excluding Other countries)		230		226		+2%

^{(1) Including VAT of 7% or 19.6%. (2) Including VAT of 7% for first-time homebuyers. (3) No VAT. (4) Indonesia deconsolidated in 2012.}

NUMBER OF HOUSING ORDERS, NET

Number of units		2012		2011		% change
France		1,872		2,247		-17%
Spain		295		239		+23%
Germany (Concept Bau)		133		274		-59%
Germany (Zapf)		165		401		-51%
Other countries		0		448		-100%
LNC		2,465		3,609		-33%
LNC (excluding Other countries)		2,465		3,161		-22%

QUARTERLY ORDERS BY COUNTRY

In ? millions incl. VAT		2012								2011
		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
France (Housing)		128		134		82		93		82		112		116		195
France (Commercial real estate)		0		0		0		0		0		0		0		67
Spain		3		27		4		17		5		7		4		28
Germany (Concept Bau)		18		11		9		15		26		15		41		18
Germany (Zapf)		9		13		4		0		22		19		11		13
Other countries		0		0		0		0		8		7		7		18
TOTAL		158		185		100		125		143		159		179		340

BACKLOG BY QUARTER (period end)

In ? millions excl. VAT		2012								2011
		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
France (Housing)		549		572		570		533		347		373		440		504
France (Commercial real estate)		48		42		36		28		0		0		0		51
Spain		55		74		72		62		63		64		52		55
Germany (Concept Bau)		105		114		116		77		86		95		116		94
Germany (Zapf)		77		90		83		38		70		88		97		59
Other countries		0		0		0		0		16		16		18		21
TOTAL		834		892		878		738		582		636		723		784

LAND POTENTIAL - HOUSING AT DECEMBER 31

Number of units		2012		2011		% change
France		6,536		5,497		+19%
Spain		223		358		-38%
Germany (Concept Bau)		409		260		+57%
Germany (Zapf)		0		0		0%
Other countries		0		830		-100%
LNC		7,168		6,945		+3%
LNC (excluding Other countries)		7,168		6,115		+17%

Excluding commercial real estate

LAND POTENTIAL BY QUARTER (period end)

In ? millions excl. VAT		2012								2011
		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
France (Housing)		981		961		994		1,332		710		831		952		1,092
France (Commercial real estate)		136		136		136		220		190		189		186		140
Spain		58		29		28		38		90		118		71		66
Germany (Concept Bau)		85		108		100		209		169		181		83		102
Germany (Zapf)		0		0		0		0		0		0		0		0
Other countries		0		0		0		0		21		18		33		41
TOTAL		1,260		1,234		1,258		1,800		1,179		1,337		1,325		1,441

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 D.12-0313] 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 Base). 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.

Investor Relations
Les Nouveaux Constructeurs
Paul-Antoine Lecocq, [phone]
Member of the Management Board
[e-mail]
or
LT Value
Investor Relations
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Media
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Financial Media
Capucine de Fouquières, [phone]
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