Lendlease Group · ASX:LLC
Lendlease — Macquarie Australia Conference 2017
15 slides from Lendlease's conference presentation, May 2, 2017
Slide 1: Lendlease Presentation at Macquarie Australia Conference
02 May 2017 For personal use only Lendlease Presentation at Macquarie Australia Conference Attached is the presentation to be given by Lendlease Group Chief Financial Officer, Tarun Gupta at today’s Macquarie Australia Conference being held in Sydney. FOR FURTHER INFORMATION, PLEASE CONTACT: Investo
Slide 2: Macquarie Australia Conference
For personal use only Macquarie Australia Conference Tarun Gupta, Group Chief Financial Officer Lendlease 2 May 2017
Slide 3: Indigenous engagement and reconciliation
MACQUARIE AUSTRALIA CONFERENCE 2017 2 Indigenous engagement and reconciliation For personal use only Lendlease’s vision for Reconciliation is one in which all our employees acknowledge and celebrate the proud heritage of Australia’s First Peoples and promote opportunities for career development, sus
Slide 4: Lendlease vision: to create the best places
MACQUARIE AUSTRALIA CONFERENCE 2017 3 Lendlease vision: to create the best places For personal use only Strategic framework Business model Competitive advantage Pillars of value
Slide 5: Globally diverse pipeline provides long term earnings visibility
MACQUARIE AUSTRALIA CONFERENCE 2017 4 Globally diverse pipeline provides long term earnings visibility1 For personal use only DEVELOPMENT CONSTRUCTION INVESTMENTS $49.0b $20.5b $24.7b $3.3b Pipeline Backlog revenue FUM Investments 1. All data as at 31 December 2016
Slide 6: Global trends influencing our strategy
MACQUARIE AUSTRALIA CONFERENCE 2017 5 Global trends influencing our strategy Lendlease leadership For personal use only • $35.0b1 Urbanisation pipeline Urbanisation • 12 major urbanisation projects2 across 8 Gateway cities • A leading tier 1 Engineering business in Australia Infrastructure • $4b+ PP
Slide 7: Portfolio Management Framework: Delivering our strategy through financial discipline
MACQUARIE AUSTRALIA CONFERENCE 2017 6 Portfolio Management Framework Delivering our strategy through financial discipline For personal use only Business model • Integrated model synergies • Target EBITDA mix: 35-45% Development 30-40% Investments 20-30% Construction Capital allocation Target returns
Slide 8: Portfolio Management Framework: HY17 EBITDA mix and invested capital
MACQUARIE AUSTRALIA CONFERENCE 2017 7 Portfolio Management Framework For personal use only HY17 EBITDA mix HY17 Invested capital By segment By region $718.8m1 $6.0b2 $6.4b3 Target (35 – 45%) (20 – 30%) (30 – 40%) (40 – 60%) (40 – 60%) (50 – 70%) (5 – 20%) (5 – 20%) (5 – 20%) weighting Returns Develo
Slide 9: Portfolio Management Framework: ROE, distributions, gearing
MACQUARIE AUSTRALIA CONFERENCE 2017 8 Portfolio Management Framework For personal use only Return on equity (ROE)1 Distributions 2 cents Target 10 – 14% 3 Target 40 – 60% 2 Gearing4 Target 10 – 15% 1. Full year ROE is calculated using the annual profit after tax divided by the arithmetic average of
Slide 10: Near term: Strong momentum in 2H17
MACQUARIE AUSTRALIA CONFERENCE 2017 9 Near term: Strong momentum in 2H17 • Apartments settlements and launches: For personal use only • Completions on track per half year results • Park Place Residences at PLQ, Singapore phase one (215 apartments) sold out • Tower One, Barangaroo: 23,800sqm1 Heads o
Slide 11: Medium term: Re-weight earnings and capital allocation
MACQUARIE AUSTRALIA CONFERENCE 2017 10 Medium term: Re-weight earnings and capital allocation For personal use only PAT Australia vs Offshore (FY10-16)1 2 HY17 Invested Capital (by region)3 Capital targets (per Portfolio Management Framework) $6.4b 1. Proportion of Group PAT split between Australia
Slide 12: Medium term: Increase earnings contribution from Engineering & Services
MACQUARIE AUSTRALIA CONFERENCE 2017 11 Medium term: Increase earnings contribution from Engineering & Services For personal use only Medium term4 outlook, per annum estimates • Engineering & Services has strategic value • The Australian infrastructure market is attractive ADDRESSABLE Pathway to • Th
Slide 13: Medium term: Increase recurring earnings via Investments segment
MACQUARIE AUSTRALIA CONFERENCE 2017 12 Medium term: Increase recurring earnings via Investments segment Funds under management $24.7b and co-investments of $1.5b For personal use only 35 $37.3b 40 $35.0b 30 $32.8b 35 $24.7b 30 25 $23.6b CAGR of $25.0b $23.1b $21.3b 16.0% 25 20 $21.3b $16.3b 20 $15.7
Slide 14: Long term: Earnings visibility from strong pipeline across all segments
MACQUARIE AUSTRALIA CONFERENCE 2017 13 Long term: Earnings visibility from strong pipeline across all segments For personal use only Development Construction Investments Pipeline of $49.0 billion1 Backlog revenue of $20.5 billion1 FUM of $24.7 billion1 1. As at 31 December 2016
Slide 15: Important notice
MACQUARIE AUSTRALIA CONFERENCE 2017 14 Important notice For personal use only This presentation has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) (Lendlease) in good faith. Neither Lendlease, nor any of its controlled entities including Lendlease Trust (together refe
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