Slide 1: Half Year 2018 Results Announcement cover note
21 February 2018 For personal use only Lendlease Group Half Year 2018 Results Announcement, Presentation and Appendix Lendlease Group today announced its results for the half year ended 31 December 2017. Attached is the HY18 Results Announcement, Presentation and Appendix. ENDS FOR FURTHER INFORMATI
Slide 2: Lendlease delivers resilient earnings, announces on-market buyback
21 February 2018 Lendlease delivers resilient earnings, announces on-market buyback For personal use only For the half year ended 31 December 20171: • Profit after Tax of $425.6 million, up 8 per cent and earnings per stapled security of 72.9 cents, up 8 per cent • Return on Equity of 13.8 per cent2
Slide 3: Media release continued: urbanisation, construction and outlook
21 February 2018 Mr McCann said: “The addition of High Road West in Tottenham in London and Milano Santa Giulia in Milan brings our global urbanisation portfolio of major projects to 16 and delivers on our stated objective of diversifying to targeted international gateway cities.” For personal use o
Slide 4: Pipeline, backlog and investments position
21 February 2018 Lendlease has an extensive development pipeline of $56.7 billion5, with $40.3 billion of urbanisation projects and $16.3 billion of Communities and Retirement projects. For personal use only Construction backlog revenue stands at $22.4 billion with an additional c.$12 billion of pre
Slide 5: 2018 Half Year Results
For personal use only 2018 Half Year Results 21 February 2018 Image: ICC Sydney & Sofitel, Darling Harbour, Sydney
Slide 6: Indigenous engagement and reconciliation
LENDLEASE – HY18 FINANCIAL RESULTS 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, sust
Slide 7: Group Performance and Highlights
Artist’s impression: High Road West, London For personal use only Group Performance and Highlights Steve McCann, Group Chief Executive Officer and Managing Director
Slide 8: Safety
LENDLEASE – HY18 FINANCIAL RESULTS 4 Safety For personal use only Lendlease is saddened to report one fatality occurred on our operations during HY18. We express our sincere condolences to the family, friends and colleagues impacted by this tragic incident. We remain committed to the safety of our p
Slide 9: Vision: to create the best places
LENDLEASE – HY18 FINANCIAL RESULTS 5 Vision: to create the best places Strategic framework Business model For personal use only Competitive advantage Pillars of value
Slide 10: Lendlease delivers resilient earnings
LENDLEASE – HY18 FINANCIAL RESULTS 6 Lendlease delivers resilient earnings Securityholder returns1 For personal use only • Profit after Tax of $425.6 million, up 8%, and earnings per stapled security of 72.9 cents, up 8% • Half year distribution of 34 cents per security, representing a dividend payo
Slide 11: HY18 Achievements
LENDLEASE – HY18 FINANCIAL RESULTS 7 HY18 Achievements Executing on our strategy For personal use only • New urbanisation projects in gateway cities: High Road West, London ($1.9 billion1); Milano Santa Giulia, Milan ($3.5 billion1) • Construction new work secured of $8.8 billion: including $3 billi
Slide 12: Construction segment: Engineering
LENDLEASE – HY18 FINANCIAL RESULTS 8 Construction segment: Engineering Near term focus Engineering backlog ($b) For personal use only • Small number of underperforming projects: ̶ HY18 EBITDA includes the reversal of previously booked margin and recognition of expected losses 20% ̶ These projects ar
Slide 13: Financials
Image: International House Sydney, Barangaroo For personal use only Financials Tarun Gupta, Group Chief Financial Officer
Slide 14: Financial performance
LENDLEASE – HY18 FINANCIAL RESULTS 10 Financial performance $ million Dec-16 Dec-17 Change For personal use only Development 260.2 443.0 70% • H1 skew: residential for rent and apartments for sale Construction 170.2 (26.1) (115%) • Underperformance in Engineering business Investments 288.4 383.1 33%
Slide 15: Cash flow movements
LENDLEASE – HY18 FINANCIAL RESULTS 11 Cash flow movements ($b)1 For personal use only Denotes major movements Barangaroo Commercial $0.2b Victoria Harbour and Darling Square $0.9b Other Urbanisation $0.4b Communities $0.4b Repayment of S$275m Bond ($0.3b) Net repayment of GBP Club Revolving Retireme
Slide 16: Financial position
LENDLEASE – HY18 FINANCIAL RESULTS 12 Financial position $ million Dec-16 Jun-17 Dec-17 Key areas of capital employed For personal use only Assets • Development inventories of $3.9 billion Cash and cash equivalents 1,020.8 1,249.2 1,545.2 • Investments of $3.1 billion including: Inventories 4,963.6
Slide 17: Portfolio Management Framework: EBITDA mix and returns
LENDLEASE – HY18 FINANCIAL RESULTS 13 Portfolio Management Framework EBITDA mix Invested capital For personal use only By segment By region 13% 14% 48% 45% $800m¹ 55% $6.6b² $6.6b³ 55% 61% 12% (3%) Target Development Construction Investments Development Investments Australia Asia Europe Americas wei
Slide 18: Portfolio Management Framework: ROE, distributions, gearing
LENDLEASE – HY18 FINANCIAL RESULTS 14 Portfolio Management Framework Return on equity (ROE)1 Distributions For personal use only cents Interim distribution (LHS) Final distribution (LHS) 2 18.2% 80 70% Payout ratio (RHS) 13.6% 13.8% 60% 12.4% 13.0% 12.9% 60 50% 49 2 33 30 40 27 40% 20 30% 20 34 27 3
Slide 19: Capital structure and capital management
LENDLEASE – HY18 FINANCIAL RESULTS 15 Capital structure and capital management Portfolio Management Framework: Optimising our capital structure For personal use only 1 Maintain investment grade credit rating KEY CAPITAL STRUCTURE 2 Optimise Weighted Average Cost of Capital (WACC) OBJECTIVES 3 Suffic
Slide 20: Operational Update
Artist’s impression: Paya Lebar Quarter, Singapore For personal use only Operational Update Steve McCann, Group Chief Executive Officer and Managing Director
Slide 21: Development
LENDLEASE – HY18 FINANCIAL RESULTS 17 Development Performance highlights1 Residential presales ($b) Residential for rent ($b) For personal use only • ROIC of 18.8%, well above target range Apartments for Sale Apartments for Rent 3 Communities • Residential completions of 3,009 units, up 48%: ̶ Apart
Slide 22: Construction
LENDLEASE – HY18 FINANCIAL RESULTS 18 Construction Performance highlights1 EBITDA ($m) For personal use only HY17 HY18 • Global EBITDA margin (0.4%) 170.2 • Australian margin impacted by a small number of 97.9 underperforming engineering projects 69.8 ̶ HY18 EBITDA includes the reversal of previousl
Slide 23: Investments
LENDLEASE – HY18 FINANCIAL RESULTS 19 Investments Performance highlights1 Investments EBITDA by activity ($m) For personal use only • ROIC of 16.5%, well above target range HY17 HY18 • Ownership earnings derived from investments increased by 41% to $319 million ̶ 25% sale of Retirement Living busine
Slide 24: Outlook
Artist’s impression: Elephant Park, London For personal use only Outlook Steve McCann, Group Chief Executive Officer and Managing Director
Slide 25: Outlook: Laying the foundations for future growth
LENDLEASE – HY18 FINANCIAL RESULTS 21 Outlook Laying the foundations for future growth For personal use only • Well positioned for future success: ̶ Earnings visibility from extensive pipeline across our business segments ̶ Financial strength, capital discipline, resilient and diversified business m
Slide 26: Earnings visibility from strong pipeline across all segments
LENDLEASE – HY18 FINANCIAL RESULTS 22 Earnings visibility from strong pipeline across all segments For personal use only Development pipeline of Construction backlog revenue of FUM of $56.7 billion $22.4 billion $28.3 billion Development pipeline Construction backlog revenue Funds under management (
Slide 27: Questions
Artist’s impression: Milano Santa Giulia, Milan For personal use only Questions
Slide 28: 2018 Half Year Results Appendix
For personal use only 2018 Half Year Results Appendix Artist’s impression: Melbourne Quarter, Melbourne
Slide 29: Lendlease Overview
Image: Oxley Highway to Kundabung Upgrade, Pacific Highway, NSW For personal use only Lendlease Overview
Slide 30: Our business model
LENDLEASE – HY18 FINANCIAL RESULTS 3 Our business model Our business model is how we generate earnings. The model is integrated when more than one For personal use only segment is engaged on a single project DEVELOPMENT Core Financial Returns: The Development segment is involved in the development o
Slide 31: Globally diverse pipeline
LENDLEASE – HY18 FINANCIAL RESULTS 4 Globally diverse pipeline Our globally diverse pipeline provides long term earnings visibility 1 For personal use only $56.7b Development $22.4b Construction $28.3b $3.1b FUM Investments pipeline backlog revenue Americas Europe $5.8b Development pipeline $13.2b D
Slide 32: Global trends influencing our strategy
LENDLEASE – HY18 FINANCIAL RESULTS 5 Global trends influencing our strategy Lendlease leadership By 2016, 54% of the world’s population • For personal use only $40.3b2 Urbanisation pipeline Urbanisation were estimated to live in urban areas; • 16 major urbanisation projects3 this will reach 60% by 2
Slide 33: Portfolio Management Framework summary
LENDLEASE – HY18 FINANCIAL RESULTS 6 Portfolio Management Framework summary For personal use only Business model • Integrated model synergies • Target EBITDA mix: 35-45% Development 30-40% Investments 20-30% Construction Capital allocation 2 Target returns • Group ROE 10-14% • Focused on gateway cit
Slide 34: Pillars of value – non-financial
LENDLEASE – HY18 FINANCIAL RESULTS 7 Pillars of value – non-financial For personal use only Safety Our Customers2 Group Lost Time Injury MILITARY HOUSING FOR Frequency Rate1 c.280 MILLION Percentage of operations RETAIL VISITORS c.125,000 without a critical incident in HY17 1.6 ANNUALLY RESIDENTS IN
Slide 35: Sustainability
LENDLEASE – HY18 FINANCIAL RESULTS 8 Sustainability Progress against environmental targets For personal use only Targeting 20% reduction in Energy, Water Use and Waste to Landfill by 2020 (against FY14 baseline) Lendlease’s FY17 performance shown below demonstrates meaningful progress against our 20
Slide 36: Group
Artist’s impression: International Quarter London, London For personal use only Group
Slide 37: Income Statement
LENDLEASE – HY18 FINANCIAL RESULTS 10 Income Statement Income Statement ($m) Dec-16 Dec-17 For personal use only Revenue 7,945.3 8,691.2 Cost of sales (7,077.3) (7,778.0) Gross profit 868.0 913.2 Share of profit of equity accounted investments 43.7 7.0 Other income 139.0 378.0 Other expenses (458.9)
Slide 38: Statement of Financial Position
LENDLEASE – HY18 FINANCIAL RESULTS 11 Statement of Financial Position Statement of Financial Position ($m) Dec-16 Jun-17 Dec-17 Statement of Financial Position ($m) Dec-16 Jun-17 Dec-17 For personal use only Current Assets Current Liabilities Cash and cash equivalents 1,020.8 1,249.2 1,545.2 Trade a
Slide 39: Statement of Cash Flows
LENDLEASE – HY18 FINANCIAL RESULTS 12 Statement of Cash Flows Statement of Cash Flows ($m) Dec-16 Dec-17 For personal use only Cash Flows from Operating Activities Cash receipts in the course of operations 8,561.0 9,272.3 Cash payments in the course of operations (8,515.1) (8,879.1) Interest receive
Slide 40: Segment financial metrics
LENDLEASE – HY18 FINANCIAL RESULTS 13 Segment financial metrics Operating Profit after Tax ($m) EBITDA ($m) For personal use only HY17 HY18 HY17 HY18 443.0 312.8 383.1 258.5 215.4 288.4 181.5 260.2 170.2 107.2 (36.0) (26.1) Development Investments Construction Development Investments Construction RO
Slide 41: Segment and regional financial metrics
LENDLEASE – HY18 FINANCIAL RESULTS 14 Segment and regional financial metrics By segment For personal use only Revenue ($m) EBITDA ($m) Profit after Tax ($m) Invested Capital ($b) HY17 HY18 HY17 HY18 HY17 HY18 HY17 FY17 HY18 Development 1,330.8 2,028.8 260.2 443.0 181.5 312.8 2.8 3.0 3.6 Investments
Slide 42: Revenue and EBITDA by segment and region
LENDLEASE – HY18 FINANCIAL RESULTS 15 Revenue and EBITDA by segment and region Revenue ($m) EBITDA ($m) EBITDA by segment ($m) For personal use only HY17 HY18 HY17 HY18 HY17 HY18 Development 800 Australia 1,277.9 1,844.4 290.1 384.0 700 Asia 7.2 4.5 (7.2) 7.7 600 Europe 44.9 132.7 6.3 59.8 500 Ameri
Slide 43: Revenue and EBITDA by segment and region, local currency
LENDLEASE – HY18 FINANCIAL RESULTS 16 Revenue and EBITDA by segment and region, local currency Asia EBITDA, local currency (m) For personal use only Local currency Revenue EBITDA HY17 HY18 HY17 HY18 HY17 HY18 30 Asia (SGDm1) 20 Development 7.5 4.8 (7.5) 8.2 10 Construction 275.9 242.4 (1.5) 0.5 - In
Slide 44: Exchange rates
LENDLEASE – HY18 FINANCIAL RESULTS 17 Exchange rates Income Statement Statement of Financial Position For personal use only Local Foreign HY171 FY172 HY183 Local Foreign HY174 FY175 HY186 AUD USD 0.75 0.76 0.78 AUD USD 0.72 0.77 0.78 AUD GBP 0.59 0.60 0.59 AUD GBP 0.58 0.59 0.58 AUD SGD 1.04 1.05 1.
Slide 45: Regional EBITDA to PAT reconciliation
LENDLEASE – HY18 FINANCIAL RESULTS 18 Regional EBITDA to PAT reconciliation HY18 EBITDA to PAT Reconciliation ($m) For personal use only Region EBITDA Net Interest D&A1 PBT Tax Non Cont. Int.2 PAT Australia Development 384.0 0.1 (1.0) 383.1 (114.6) - 268.5 Construction (66.1) 0.4 (13.8) (79.5) 24.9
Slide 46: Debt metrics
LENDLEASE – HY18 FINANCIAL RESULTS 19 Debt metrics Dec-16 Jun-17 Dec-17 For personal use only Net debt $m 843.7 912.8 249.7 Borrowings to total equity plus borrowings % 23.7 25.9 21.8 Net debt to total tangible assets, less cash % 5.1 5.0 1.9 Interest coverage1 times 10.8 10.3 12.5 Average cost of d
Slide 47: Debt facilities and maturity profile
LENDLEASE – HY18 FINANCIAL RESULTS 20 Debt facilities and maturity profile Debt facilities ($m)1 For personal use only Drawn Facility 1,500 690 514 514 508 508 476 476 287 287 - - Syndicated UK Club US $ Reg. Singapore Australian Multi Option Bond Revolving S notes Bond medium term Facility Issue Cr
Slide 48: Key dates for investors
LENDLEASE – HY18 FINANCIAL RESULTS 21 Key dates for investors Date For personal use only HY18 results released to market / interim distribution declared 21 February 2018 Securities quoted ex-dividend on the Australian Securities Exchange 27 February 2018 Interim distribution record date 28 February
Slide 49: Development
Artist’s impression: Riverline, Chicago For personal use only Development
Slide 50: Development HY18
LENDLEASE – HY18 FINANCIAL RESULTS 23 Development HY18 Overview Performance For personal use only • Involved in the development of communities, inner city mixed-use HY17 HY18 development, apartments, retirement, retail, commercial assets and % Operating EBITDA 36 55 social and economic infrastructur
Slide 51: Development earnings / pipeline
LENDLEASE – HY18 FINANCIAL RESULTS 24 Development earnings / pipeline EBITDA by region ($m) Development pipeline by region ($b) For personal use only HY17 HY18 HY17 HY18 443.0 56.7 384.0 49.0 290.1 260.2 30.9 31.5 13.2 59.8 5.7 6.2 8.7 5.8 3.7 (7.2) 7.7 6.3 (29.0) (8.5) Australia Asia Europe America
Slide 52: Residential development
LENDLEASE – HY18 FINANCIAL RESULTS 25 Residential development Communities and Retirement completions HY18 Apartment completions 3,4 For personal use only HY17 HY18 Units $m Units $m Units $m Australia Communities Brisbane Showgrounds - South Yard 186 101 QLD 589 114 717 145 Darling Square - Darling
Slide 53: Development commencements and completions
LENDLEASE – HY18 FINANCIAL RESULTS 26 Development commencements and completions Est end value1 Completion City Project Building Sector Deal type sqm (‘000) For personal use only ($b) date2 Commercial completions Sydney Darling Square Commercial Office Fund through 0.3 26 HY18 Hotel Hotel Fund throug
Slide 54: Residential presales and apartments for rent
LENDLEASE – HY18 FINANCIAL RESULTS 27 Residential presales and apartments for rent 1 Movement in presales - Apartments for Sale For personal use only By units By value ($m) Australia Asia Europe Americas Australia Asia Europe Americas 5,513 4,829 1,542 4,167 (1,189) 1,148 3,902 (1,025) 40 42 317 3,2
Slide 55: Residential presales
LENDLEASE – HY18 FINANCIAL RESULTS 28 Residential presales1 Movement in presales – Communities2 For personal use only By lots By value ($m) (438) 440 (1,780) 1,726 947 949 3,896 3,842 844 3,351 HY17 FY17 Completions Sales HY18 HY17 FY17 Completions Sales HY18 1. Excludes retirement and includes 100%
Slide 56: Apartment presales – by location and customer
LENDLEASE – HY18 FINANCIAL RESULTS 29 Apartment presales – by location and customer1 For personal use only Run-off profile by location2 By customer FY19 FY20 46% 15% Local 23% China 62% Other offshore 21% 20% 21% 12% 9% 8% 3% 1% 1% Sydney Melbourne Singapore London Boston New York 1. Apartment proje
Slide 57: Development pipeline provides long term earnings visibility
LENDLEASE – HY18 FINANCIAL RESULTS 30 Development pipeline provides long term earnings visibility1 Record secured pipeline of $56.7b controlled by invested capital of $3.6b Target Annual For personal use only Apartments turnover6 21 major apartment buildings in delivery, across 2,702 presold units a
Slide 58: Major urbanisation project summary
LENDLEASE – HY18 FINANCIAL RESULTS 31 Major urbanisation project summary Total For personal use only Expected Residential Commercial Project Delivery remaining Project completion backlog backlog secured1 commenced1 end value date1,2 (units) sqm (‘000)3 ($b)4 Milano Santa Giulia, Milan 2018 - 2034 2,
Slide 59: Apartment projects in delivery – completion profile
LENDLEASE – HY18 FINANCIAL RESULTS 32 Apartment projects in delivery – completion profile Ownership Units Presales Completion Project1 For personal use only City Building Total Units Presold (%) (%) Presold1 Revenue1 ($m) Date2 Apartments for sale Darling North, Harbour Place Darling Square Sydney 1
Slide 60: Major commercial development pipeline
LENDLEASE – HY18 FINANCIAL RESULTS 33 Major commercial development pipeline Commercial building completion profile 1 For personal use only City Project Capital model sqm ('000) Building Completion date London International Quarter London Fund through2 47 Commercial building H2 FY18 Joint venture 26
Slide 61: Communities and Retirement projects
LENDLEASE – HY18 FINANCIAL RESULTS 34 Communities and Retirement projects Residential Commercial For personal use only Estimated Completion Project Location Ownership Interest Backlog Backlog Date1 Land Units2 sqm (‘000)3 Communities Calderwood Valley NSW Land management 2034 4,570 152 Gilead NSW Ow
Slide 62: Development deal structuring tailored to local market
LENDLEASE – HY18 FINANCIAL RESULTS 35 Development deal structuring tailored to local market Urbanisation For personal use only Communities / Retirement Apartments Commercial Forward Sale JV Structure / LP-GP1 (Australia, Europe) • Barangaroo South (ITS), • Paya Lebar Quarter, Project • Jordan Spring
Slide 63: New asset classes for Lendlease
LENDLEASE – HY18 FINANCIAL RESULTS 36 New asset classes for Lendlease For personal use only Residential for Rent US Telecommunication Infrastructure • Integrated model Strategic • Integrated model • Aligned with targeted gateway city strategy rationale • Aligned with identified trends influencing st
Slide 64: Construction
Artist’s impression: Western Sydney Stadium, Sydney For personal use only Construction
Slide 65: Construction HY18
LENDLEASE – HY18 FINANCIAL RESULTS 38 Construction HY18 Overview Performance For personal use only • Provides a project management, design, and construction service, HY17 HY18 predominantly in the infrastructure, defence, mixed-use, commercial % Operating EBITDA 24 (3) and residential sectors EBITDA
Slide 66: Construction earnings
LENDLEASE – HY18 FINANCIAL RESULTS 39 Construction earnings EBITDA ($m) EBITDA margins For personal use only HY17 HY18 HY17 HY18 170.2 3.2% 3.0% 3.0% 2.7% 97.9 69.8 1.2% 0.6% 10.3 29.2 (1.9%) (0.5%) 0.2% (0.4%) (66.1) (1.4) 0.5 3.9 (26.1) Australia Asia Europe Americas Total Australia Asia Europe Am
Slide 67: Construction backlog
LENDLEASE – HY18 FINANCIAL RESULTS 40 Construction backlog Backlog revenue ($b) Backlog revenue by region ($b) 1 For personal use only Americas Aus Building 6.5 7.2 20.7 22.4 $22.4b 20.6 16.2 16.2 17.3 1.5 Europe 0.6 1.6 5.0 Asia Aus Engineering FY13 FY14 FY15 FY16 FY17 HY18 Aus Services Backlog rev
Slide 68: Construction new work secured / backlog
LENDLEASE – HY18 FINANCIAL RESULTS 41 Construction new work secured / backlog New work secured revenue ($b) For personal use only Australia Asia Europe Americas Total Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 1 New work secured revenue Building 2.4 2.8 0.6 0.1 0.4 1.0 2.5
Slide 69: Construction backlog revenue by region
LENDLEASE – HY18 FINANCIAL RESULTS 42 Construction backlog revenue by region Group ($b) Australia ($b) For personal use only 8.8 (6.4) (0.6) (3.4) (0.2) 6.2 Book to bill¹: 1.4 22.4 Book to bill¹: 1.8 13.8 20.5 20.6 11.6 11.2 HY17 FY17 New work Revenue Other HY18 HY17 FY17 New work Revenue Other HY18
Slide 70: Market opportunity for Engineering and Services in Australia
LENDLEASE – HY18 FINANCIAL RESULTS 43 Market opportunity for Engineering and Services in Australia Engineering construction 1 c.$75b2 Major transport construction1,4 ($b) For personal use only Value of work done, inflation adjusted5 Projected composition1: • Transport c.$30 billion • Resources c.$15
Slide 71: Australia: Major Projects – Building
LENDLEASE – HY18 FINANCIAL RESULTS 44 Australia: Major Projects – Building1,2 Contract Contract Value Secured Completion Project Location Sector For personal use only Type3 ($m) Date4 Date4,5 Crown Sydney Hotel Resort NSW MC 1,060.0 2015 2021 Hotel/Entertainment New Air Combat Capability - RAAF Will
Slide 72: Australia: Major Projects – Engineering
LENDLEASE – HY18 FINANCIAL RESULTS 45 Australia: Major Projects – Engineering1,2 Contract Value Completion Project Location For personal use only Contract Type3 Secured Date4 Sector ($m) Date4,5 Melbourne Metro Rail Tunnel VIC D&C 6,000.06 2018 2024 Transport NorthConnex M1 / M2 Tunnel NSW D&C 1,305
Slide 73: Asia and Europe: Major Projects – Building
LENDLEASE – HY18 FINANCIAL RESULTS 46 Asia: Major Projects – Building1,2 Contract Contract Secured Completion Project Location For personal use only Sector Type3 Value ($m) Date4 Date4,5 Paya Lebar Quarter Singapore GMP 792.7 2016 2020 Commercial & Residential Europe: Major Projects – Building1,2 Co
Slide 74: Americas: Major Projects – Building
LENDLEASE – HY18 FINANCIAL RESULTS 47 Americas: Major Projects – Building1,2 Contract Value Completion Project Location For personal use only Contract Type3 Secured Date4 Sector ($m) Date4,5 432 Park Ave New York CM 935.9 2012 2018 Residential Jacob K. Javits Convention Center New York LS 777.6 2017
Slide 75: Investments
Image: Setia City Mall, Malaysia For personal use only Investments
Slide 76: Investments HY18
LENDLEASE – HY18 FINANCIAL RESULTS 49 Investments HY18 Overview Performance For personal use only • Owns and / or manages investments including a leading wholesale HY17 HY18 investment management platform and also the Group’s ownership % Operating EBITDA 40 48 interests in property and infrastructur
Slide 77: Investments earnings / ownership
LENDLEASE – HY18 FINANCIAL RESULTS 50 Investments earnings / ownership EBITDA by region ($m) EBITDA by activity ($m) For personal use only HY17 HY18 HY17 HY18 383.1 288.4 267.4 244.2 319 97.1 226 16.9 18.7 26.1 1.2 (0.1) 62 64 Australia Asia Europe Americas Total Ownership interests¹ Operating earni
Slide 78: Funds Under Management (FUM)
LENDLEASE – HY18 FINANCIAL RESULTS 51 Funds Under Management (FUM) Growth in FUM ($b) For personal use only 32.0 10 CAGR¹ of 15.2% 27.0 8 22.0 6 17.0 26.1 28.3 12.0 21.3 23.6 4 7.0 15.0 16.3 2 2.0 (3.0 ) FY13 FY14 FY15 FY16 FY17 HY18 0 FUM by asset class2 FUM by region2 Industrial Other Europe 3% 2%
Slide 79: FUM by region
LENDLEASE – HY18 FINANCIAL RESULTS 52 FUM by region Group ($b) Australia ($b) For personal use only (0.1) 1.3 1.0 1.3 0.7 (0.1) 26.1 28.3 21.2 24.7 17.9 19.3 HY17 FY17 Additions Divestments Revaluations HY18 HY17 FY17 Additions Divestments Revaluations HY18 Europe ($b) Asia ($b) 0.3 - - - - - 5.4 5.
Slide 80: FUM by region
LENDLEASE – HY18 FINANCIAL RESULTS 53 FUM by region Market Value1 Market Value1 Australia FUM Fund Type Asset Class For personal use only June 2017 ($b) December 2017 ($b) Australian Prime Property Fund Retail Core Retail 5.2 5.4 Lendlease International Towers Sydney Trust Core Commercial 3.5 3.8 Au
Slide 81: Major fund summary as at December 2017
LENDLEASE – HY18 FINANCIAL RESULTS 54 Major fund summary as at 31 December 2017 Funds Management Platform 1 For personal use only ARIF7 1 ARIF7 3 APPFR2 APPFC3 APPFI4 LLITST5 LLOITST 6 PPPL8 LLRP9 (Somerset) (Jem) Total assets ($b) 5.4 4.5 0.8 3.8 2.4 0.8 1.4 1.2 1.4 Gearing (%) 11.5 14.7 6.5 17.8 1
Slide 82: Investments: co-investments by region
LENDLEASE – HY18 FINANCIAL RESULTS 55 Investments Market Value1 Market Value1 Australia Co-investments Lendlease Interest (%) For personal use only June 2017 ($m) December 2017 ($m) Australian Prime Property Fund Retail 1.7 73.2 77.0 Lendlease International Towers Sydney Trust 15.0 411.5 446.5 Austr
Slide 83: Assets Under Management (AUM) by region
LENDLEASE – HY18 FINANCIAL RESULTS 56 Assets Under Management (AUM) by region Market Value2 Market Value2 GLA1 sqm (‘000) For personal use only AUM Australia Asset Class June 2017 ($b) December 2017 ($b) Total Retail 748.1 7.2 7.6 Market Value2 Market Value2 AUM Asia Asset Class GLA1 sqm (‘000) June
Slide 84: Retirement summary
LENDLEASE – HY18 FINANCIAL RESULTS 57 Retirement summary Value drivers1 Investments ($m) For personal use only Valuation drivers HY17 HY18 Long term growth rate 3.6% 3.5% Discount rate 13.0% 12.3% Average length of stay – ILUs (years) 11 12 Number of established units 12,433 12,664 1,654 1,711 Units
Slide 85: Retirement business and transaction
LENDLEASE – HY18 FINANCIAL RESULTS 58 Retirement business and transaction Investment reconciliation ($b) For personal use only • Lendlease sold 25% of its investment in the Retirement Living Lendlease Investment 30 June 2017 to transaction completion business to APG for a price of $0.5b ($2.04b at 1
Slide 86: Important notice
LENDLEASE – HY18 FINANCIAL RESULTS 59 Important notice This document (including the appendix) has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 For personal use only 228) (Lendlease) in good faith. Neither Lendlease (including any of its controlled entities), nor Lendleas