Lendlease Group · ASX:LLC
Lendlease — Credit Suisse Asian Investment Conference 2019
15 slides from Lendlease's conference presentation, Mar 28, 2019
Slide 1: Lendlease Presentation at Credit Suisse Asian Investment Conference
28 March 2019 For personal use only Lendlease Presentation at Credit Suisse Asian Investment Conference Attached is the presentation to be given by Lendlease Group Chief Financial Officer, Tarun Gupta at today’s Credit Suisse Asian Investment Conference in Hong Kong. ENDS FOR FURTHER INFORMATION, PL
Slide 2: Artist's impression: Paya Lebar Quarter, Singapore
For personal use only Artist’s impression: Paya Lebar Quarter, Singapore
Slide 3: Our approach
LENDLEASE — PRESENTATION TO CREDIT SUISSE ASIAN INVESTMENT CONFERENCE e Our approach AS A LEADING INTERNATIONAL PROPERTY AND INFRASTRUCTURE GROUP OUR PILLARS OF VALUE: ay HEALTH & SAFETY 7) FINANCIAL a OUR CUSTOMERS 20, (mah) OUR PEOPLE %@ SUSTAINABILITY NG TERM SECURITYHOLDER VALUE (TARGET 10-14% R
Slide 4: For personal use only
For personal use only By 2030, over 60% of the world’s • $59.3b urbanisation pipeline2 population is expected to live in • 20 major urbanisation projects3 across 10 urban areas1 gateway cities Global infrastructure spending is • c.$10b PPPs secured5 estimated to rise to an average of US$5.1 trillion
Slide 5: For personal use only
For personal use only $7.9b Development pipeline1 $30.1b Development pipeline1 $5.4b Development pipeline1 $31.1b Development pipeline1 $6.2b Construction backlog $1.2b Construction backlog $0.8b Construction backlog $6.6b Construction backlog3 $0.4b FUM $1.6b FUM $8.0b FUM $24.1b FUM $0.4b Investme
Slide 6: For personal use only
For personal use only • Comprehensive strategic review determined Engineering and Services is no longer a required part of Group strategy: ̶ Enables both Engineering and Services and Lendlease Group to focus on their core competitive advantages ̶ Group strategic focus increasingly directed towards u
Slide 7: For personal use only
For personal use only Prev. Revised Removal of Engineering and Services: Target Target • Reduces Construction contribution to EBITDA mix Target EBITDA mix: • Construction segment EBITDA margin target 2-3% • Development 35-45% 40-50% Reclassification of internal Construction margin4: • Shift from Con
Slide 8: Underlying operating cash flow
For personal use only • Underlying operating cash flow will be reported to better reflect operating cash generated by the Group from its operating model • Represents the amount of operating cash flow derived in a period, prior to payment of interest and tax, and reinvestment in the Group’s pipeline
Slide 9: Development
For personal use only Urbanisation Communities Telco Infrastructure Military Infrastructure Development Housing 20 major projects in 15 communities 10 gateway cities projects across Australia Business Australian US Military US Telco Apartments Commercial Communities Infrastructure Housing Towers Dev
Slide 10: For personal use only
For personal use only Resi for sale In delivery1 2,600 • c.2,600 apartments for rent across 2,533 Resi for rent c.2,345 six urbanisation projects, expected launch H2FY19 – FY23 c.1,756 c.1,415 • Apartments for rent across nine 1,314 1,500 urbanisation projects, expected to 23,600 2,533 launch after
Slide 11: Construction backlog and revenue
For personal use only Construction (ex E&S) Engineering and Services Australia Building E&S Asia Europe Americas 20.7 20.6 21.1 21.4 17.3 16.2 5.5 4.9 5.9 6.6 29% 31% 3.0 3.6 Backlog Revenue 15.2 15.7 15.2 14.8 13.2 13.7 5% 4% 31% FY14 FY15 FY16 FY17 FY18 HY19 Transport Residential Hotel/Entertainme
Slide 12: Investments
For personal use only HY18 HY19 Co-investments Retirement Living Infrastructure/Other 0.5 319 203 1.7 Investments 64 70 1.4 Ownership interests¹ Operating earnings² US Military Housing Retail Assets Compound Annual Growth Rate of 17.8% 34.1 30.1 26.1 23.6 21.3 Assets Under 13.3 13.3 16.3 Management
Slide 13: For personal use only
For personal use only • Re-setting the business: ̶ Engineering and Services non-core: o Discussions with key stakeholders underway o Information memorandum and data room being established ̶ Revised Portfolio Management Framework; targeting enhanced risk adjusted returns • Development pipeline of $74
Slide 14: For personal use only
For personal use only Development pipeline Construction backlog revenue Funds under management ($b) ($b) ($b) 80 25 35 70 30 20 60 25 50 15 20 40 15 30 10 10 20 5 HY19 HY19 HY19 5 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 10 - - - 1. Construction backlog revenue incl
Slide 15: Disclaimer
This document has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) (Lendlease) in good faith. For personal use only Neither Lendlease (including any of its controlled entities), nor Lendlease Trust (together referred to as the Lendlease Group) makes any representation o
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