Lendlease Group · ASX:LLC
Lendlease — H1 FY2019 Earnings Presentation
92 slides from Lendlease's earnings presentation, Feb 25, 2019
Slide 1: Lendlease Group 2019 Half Year Results Announcement, Presentation and Appendix
25 February 2019 For personal use only Lendlease Group 2019 Half Year Results Announcement, Presentation and Appendix Lendlease Group today announced its results for the half year ended 31 December 2018. Attached is the HY19 Results Announcement, Presentation and Appendix. ENDS FOR FURTHER INFORMATI
Slide 2: HY19 Results and Engineering and Services update
25 22 February 2019 August 2018 HY19 Results and Engineering and Services update For personal use only For the half year ended 31 December 20181: • Profit after Tax of $15.7 million and earnings per stapled security of 2.8 cents • Interim distribution of 12 cents per stapled security • Development p
Slide 3: Engineering and Services review and HY19 results
25 22 February 2019 August 2018 The review concluded that it is in the best interests of clients, employees and securityholders to consider alternatives that will allow both the Engineering and Services business and Lendlease Group to focus on their core competitive advantages. The review also reaff
Slide 4: Development pipeline and capital partners
25 22 February 2019 August 2018 $3 billion. Post balance date the Group was also named preferred partner on London Thamesmead Waterfront and Birmingham Smithfield projects in the UK which have a combined estimated end development value of $17.2 billion. For personal use only In line with its integra
Slide 5: Portfolio framework, capital management and outlook
25 22 February 2019 August 2018 The Investments segment continued to generate above target returns, with strong growth in Funds Under Management and operating income. For personal use only The Group has revised its Portfolio Management Framework to reflect that Engineering and Services is now classi
Slide 6: 2019 Key Dates for Investors
25 22 February 2019 August 2018 2019 Key Dates for Investors For personal use only HY19 results released to market/interim distribution declared 25 February Securities quoted ex-distribution on the Australian Securities 1 March Exchange Interim distribution record date 4 March Interim distribution p
Slide 7: For personal use only
For personal use only Artist’s impression: Paya Lebar Quarter, Singapore
Slide 8: Acknowledgement of Country
LENDLEASE — HY19 FINANCIAL RESULTS e Acknowledgement of Country As a builder, developer and manager of assets on land all over Australia, we pay our respect to the traditional owners, especially their elders past and present, and value their custodianship of these lands.
Slide 9: For personal use only
Artist’s impression: The Cooper at Southbank, Chicago For personal use only
Slide 10: Health, safety and sustainability highlights
For personal use only Group Lost Time Injury • Australia: 2018-19 WGEA4 • Additional contract options • APPF Commercial 1st out Frequency Rate1,2 Employer of Choice for offered in Retirement of 874 Funds in 2018 Gender Equality Living GRESB5 survey • 1.9 (1.6 in HY18) • UK: The Times Top 50 • Priori
Slide 11: Strategic review of Engineering and Services
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 12: Our approach: pillars of value
LENDLEASE — HY19 FINANCIAL RESULTS C6} Our approach OUR PILLARS OF VALUE: ay HEALTH & SAFETY 7) FINANCIAL a OUR CUSTOMERS 20, (mah) OUR PEOPLE %@ SUSTAINABILITY
Slide 13: HY19 results highlights
For personal use only • Profit after Tax of $15.7m and earnings per stapled security of 2.8 cents • Half year distribution of 12 cents per security • Return on Equity of 0.5%2 • Capital management: On market buyback completed, $352m of securities acquired • Completion of 83,000sqm office component a
Slide 14: Origination and capital partnership initiatives
For personal use only • Development: ̶ Secured Victoria Cross, Sydney: $1.1b1 over station development ̶ Secured Lakeshore East, Chicago: $2.1b1 residential for rent and sale ̶ Commenced 845 West Madison, Chicago: $0.5b1 residential for rent • Additional origination success post balance date: ̶ Pref
Slide 15: For personal use only
Artist’s impression: Victoria Cross, Sydney For personal use only Image subject to change and further design development and planning approval
Slide 16: Group financial results by segment
$m HY18 HY19 Change For personal use only 443.0 260.8 (41%) • Strong prior period and skew to H2 FY19; completion of PLQ Development office; US residential investment partnership secured Construction (ex E&S1) 147.4 111.4 (24%) • Solid Building performance, down from strong HY18 383.1 273.2 (29%) •
Slide 17: 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 18: Cash movement
Denotes major For personal use only movements US residential investment partnership $0.2b Other urbanisation ($0.2b) Distribution paid ($0.2b) Construction ($0.2b) On market buyback ($0.2b) Net borrowings $0.9b (0.2) (0.1) 0.6 (0.4) 1.2 1.1 Sell down of LLOITST $0.2b2 Urbanisation ($0.2b) Communitie
Slide 19: Balance sheet summary
$m HY18 FY18 HY19 For personal use only Assets • Development inventories of $4.9b Cash and cash equivalents 1,545.2 1,177.1 1,088.1 • Investments of $3.6b including: Inventories 4,884.7 5,546.3 6,039.4 ̶ Co-investments of $1.7b Equity accounted investments 2,268.0 2,626.6 3,191.2 ̶ Retirement Living
Slide 20: Portfolio management framework: earnings and capital mix
For personal use only 14% 42% 40% 40% $645m¹ $8.5b² 19% $8.1b² 53% 60% 14% 18% Target weighting Development Const. (ex E&S) Investments Development Investments Australia Asia Europe Americas (35 - 45%) (20 - 30%) (30 - 40%) (40 - 60%) (40 - 60%) (50 - 70%) (5 - 20%) (5 - 20%) (5 - 20%) 18.8% 16.5% H
Slide 21: Revised targets and Portfolio Management Framework
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 22: For personal use only
Artist’s impression: Birmingham Smithfield, UK For personal use only Image subject to change and further design development and planning approval
Slide 23: Development: apartments and communities
For personal use only Apartments 1H 2H Actual 2H Forecast Units remaining Units for rent in delivery • H2 skew expected with settlements across five cities: Units presold in delivery ̶ Sydney; Melbourne; London; New York; and Boston c.2,345 31,180 • Pipeline underpins new product in an additional si
Slide 24: Development: commercial
For personal use only • Major office developments completed, 124,000 sqm, c.$2.5b2: Circular Quay Tower and ̶ Paya Lebar Quarter, Singapore: 83,000 sqm Daramu House, Barangaroo South, The Lifestyle Quarter (retail) ̶ One Melbourne Quarter, Melbourne: 26,000 sqm Paya Lebar Quarter (retail) and Intern
Slide 25: Construction (ex Engineering and Services)
For personal use only • Global EBITDA margin 2.1%, EBITDA profit of $111.4m HY18 HY19 • Backlog revenue of $14.8b 147.4 • Australia: 111.4 107.4 ̶ Strong performance, well diversified by sector and client ̶ HY18 boosted by completion of internal construction projects 64.7 at Darling Square ̶ $2.2b o
Slide 26: Engineering and Services
For personal use only • HY19 EBITDA loss of $473.7m: Transport Services Telecommunications Other Services ̶ Includes previously announced $500m pre tax2 impact from Road Rail Other Engineering expected losses on underperforming projects 2% • Revenue of $1.5b, backlog of $6.6b 11% • Implementing a ne
Slide 27: Investments
For personal use only Ownership earnings HY18 HY19 • EBITDA $203.6m, lower revaluations compared to prior period • $1.7b of co-investments: 319 ̶ Higher income driven by Australian office portfolio ̶ Solid income driven asset value appreciation 203 ̶ Capital partner acquisition of c.10% interest in
Slide 28: For personal use only
Artist’s impression: Lakeshore East, Chicago For personal use only Image subject to change and further design development and planning approval
Slide 29: Re-setting the business and integrated model
For personal use only • Re-setting the business: ̶ Engineering and Services non-core ̶ Revised Portfolio Management Framework; targeting enhanced risk adjusted returns • Development pipeline of $74.5b: ̶ Origination and place making capability for the integrated model ̶ 20 major urbanisation project
Slide 30: Development pipeline, construction backlog and FUM
For personal use only Development pipeline Construction backlog revenue Funds under management ($b) ($b) ($b) 80 25 35 70 30 20 60 25 50 15 20 40 10 15 30 10 20 5 HY19 HY19 HY19 FY14 FY15 FY16 FY17 FY18 5 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 10 - - - 1. Engineering and Services accounts
Slide 31: For personal use only
Image: Residential display suite, Jordan Springs, NSW For personal use only
Slide 32: For personal use only
Artist’s impression: Paya Lebar Quarter, Singapore For personal use only
Slide 33: For personal use only
Artist’s impression: Victoria Harbour, Melbourne For personal use only
Slide 34: Segment descriptions and revenue drivers
For personal use only The Development segment is involved in the development of • Development margins communities, inner city mixed use developments, apartments, • Development management fees received from external retirement, commercial assets, and social and economic co-investors infrastructure •
Slide 35: Regional snapshot: pipeline, backlog, FUM
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 $13.2b Construction backlog3 $0.4b FUM $1.6b FUM $8.0b FUM $24.1b FUM $0.4b Investm
Slide 36: Global trends and Lendlease positioning
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 37: Sustainability recognition and TCFD
For personal use only In FY18 the Lendlease Board endorsed the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) The TCFD provides a voluntary framework for climate-related risk disclosures for use by companies to inform investors, lenders, insurers and interested stak
Slide 38: For personal use only
Artist’s impression: Clippership Wharf, Boston For personal use only
Slide 39: Income statement
$m HY18 HY19 For personal use only 1 Revenue from contracts with customers 8,632.7 7,679.7 1 Other revenue 58.5 82.0 Cost of sales (7,778.0) (7,699.8) Gross profit 913.2 61.9 Share of profit of equity accounted investments 7.0 193.5 Other income 378.0 207.9 Other expenses (628.0) (441.7) Results fro
Slide 40: Statement of financial position
$m HY18 FY18 HY19 $m HY18 FY18 HY19 For personal use only Current Assets Current Liabilities Cash and cash equivalents 1,545.2 1,177.1 1,088.1 Trade and other payables 4,719.6 5,769.5 5,826.9 Loans and receivables 2,127.0 2,670.2 2,196.0 Provisions 421.9 329.9 322.5 Inventories 1,713.4 2,369.2 2,862
Slide 41: Statement of cash flows
$m HY18 HY19 For personal use only Cash Flows from Operating Activities Cash receipts in the course of operations 9,272.3 8,070.8 Cash payments in the course of operations (8,879.1) (8,861.5) Interest received 6.6 5.8 Interest paid (79.0) (85.2) Dividends/distributions received 36.3 62.9 Income tax
Slide 42: Underlying operating cash flow conversion
For personal use only • Lendlease has delivered underlying operating cash Total conversion against EBITDA of 92% flow of $5.3b from FY14 to HY19 Cash • This represents 92% of Group EBITDA over the period. 105% 39% 157% 104% 73% (197%) conversion Balance relates to a combination of factors including:
Slide 43: Underlying to statutory cash flow reconciliation
For personal use only $m Statutory Adjustments Underlying • Underlying operating cash flow is Cash Flows from Operating Activities derived by adjusting statutory cash flows to better reflect operating cash generated by Cash receipts in the course of operations 8,070.8 - 8,070.8 the Group from its op
Slide 44: Segment EBITDA, profit and ROIC
For personal use only HY18 HY19 HY18 HY19 443.0 383.1 312.8 273.2 258.5 226.0 260.8 179.7 147.4 111.4 92.3 75.7 (128.3) (339.4) (173.5) (473.7) Development Investments Construction Engineering Development Investments Construction Engineering (ex E&S¹) and Services (ex E&S) and Services ROIC HY18 HY1
Slide 45: Segment and regional financial summary
For personal use only Revenue ($m) EBITDA ($m) Profit after Tax ($m) Invested capital ($b) HY18 HY19 HY18 HY19 HY18 HY19 HY18 FY18 HY19 Development 2,028.8 870.4 443.0 260.8 312.8 179.7 3.6 4.3 5.1 Investments 218.5 164.2 383.1 273.2 258.5 226.0 3.0 3.3 3.4 Construction (ex E&S) 4,896.9 5,190.8 147.
Slide 46: Segment results by region
$m Revenue EBITDA For personal use only HY18 HY19 HY18 HY19 Development HY18 HY19 Australia 1,844.4 594.9 384.0 71.1 Asia 4.5 9.2 7.7 100.7 443.0 Europe 132.7 223.4 59.8 31.3 383.1 Americas 47.2 42.9 (8.5) 57.7 260.8 273.2 Total Development 2,028.8 870.4 443.0 260.8 147.4 111.4 (173.5) (473.7) Const
Slide 47: Results in local currencies
For personal use only SGDm¹ Revenue EBITDA HY18 HY19 HY18 HY19 HY18 HY19 136.1 Development 4.8 9.1 8.2 99.6 99.6 Construction 242.4 198.0 0.5 3.5 Investments 22.3 28.6 19.8 33.0 33.0 28.5 19.8 8.2 0.5 3.5 Total Operating 269.5 235.7 28.5 136.1 Development Construction Investments Total Operating £m1
Slide 48: Foreign exchange rates
For personal use only Local Foreign HY181 FY182 HY193 Local Foreign HY184 FY185 HY196 AUD USD 0.78 0.77 0.72 AUD USD 0.78 0.74 0.70 AUD GBP 0.59 0.57 0.55 AUD GBP 0.58 0.56 0.55 AUD SGD 1.06 1.04 0.99 AUD SGD 1.04 1.01 0.96 1. Average foreign exchange rate for the half year 2018. 2. Average foreign
Slide 49: EBITDA to profit after tax by segment and region
For personal use only $m EBITDA Net interest D&A1 PBT Tax PAT Australia Development 71.1 (1.6) (1.5) 68.0 (20.3) 47.7 Construction (409.0) 0.8 (15.4) (423.6) 127.3 (296.3) Investments 198.4 - (2.8) 195.6 (28.0) 167.6 Total Australia (139.5) (0.8) (19.7) (160.0) 79.0 (81.0) Asia Development 100.7 - (
Slide 50: Debt metrics
HY18 FY18 HY19 For personal use only Net debt $m 249.7 1,181.8 2,276.3 Borrowings to total equity plus borrowings % 21.8 26.9 35.5 Net debt to total tangible assets, less cash % 1.9 8.2 15.2 Interest cover1 times 12.5 10.7 8.1 Average cost of debt % 4.8 4.8 4.2 Average debt maturity years 5.4 4.6 4.
Slide 51: Debt facilities and maturity profile
For personal use only Drawn Facility 1,800 1,050 727 543 543 582 567 567 311 311 304 304 Syndicated Multi UK Bond Issue Club Revolving US $ Reg. S notes Singapore Bond Australian medium Option Facility Credit Facility S$300m term notes Syndicated Multi Option Facility UK Bond Issue Club Revolving Cr
Slide 52: Distribution key dates
Date For personal use only HY19 results released to market / interim distribution declared 25 February 2019 Securities quoted ex distribution on the Australian Securities Exchange 1 March 2019 Interim distribution record date 4 March 2019 Interim distribution payable 20 March 2019 FY19 results relea
Slide 53: For personal use only
Artist’s impression: The Exchange, Darling Square, Sydney For personal use only
Slide 54: Development business overview and portfolio
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 55: Development segment results
For personal use only • Involved in the development of communities, inner city mixed use HY18 HY19 developments, apartments, retirement, commercial assets, and social % Operating EBITDA (ex E&S)1 % 46 40 and economic infrastructure ROIC % 18.8 7.5 • Financial returns are generated via development ma
Slide 56: Development EBITDA and pipeline by region
For personal use only HY18 HY19 HY18 HY19 443.0 74.5 384.0 56.7 260.8 31.5 31.1 30.1 100.7 71.1 59.8 57.7 13.2 31.3 6.2 5.4 5.8 7.9 7.7 (8.5) Australia Asia Europe Americas Total Australia Asia Europe Americas Total Australia Asia Europe Americas Communities² Urbanisation 74.5³ 71.1³ 13% 28% 48.8 49
Slide 57: Settlements by state
For personal use only HY18 HY19 Units $m Units $m Units $m Total Australia 8 7 QLD 717 145 173 33 Elephant Park - West Grove (Buildings 1 and 2) 129 108 NSW 379 149 294 65 Wandsworth - Victoria Drive 7 13 VIC 587 127 357 83 Other 1 1 SA 49 6 43 7 Total Europe 137 122 WA 48 11 41 9 Total settlements
Slide 58: Completions and commencements
End value1 City Project Building Sector Capital model sqm ‘000 For personal use only ($b) Commercial completions Melbourne Melbourne Quarter One Melbourne Quarter Office Fund through 0.3 26 Brisbane Brisbane Showgrounds 25 King Office Fund through 0.1 15 Singapore Paya Lebar Quarter Commercial (3 bu
Slide 59: Apartment sales, settlements and rental movements
For personal use only Australia Asia Europe Americas Australia Asia Europe Americas 198 (145) 3,583 238 (129) 70 3,615 3,530 3,436 3,295 121 100 3,098 169 283 88 113 861 1,243 1,230 885 1,228 865 464 538 210 386 412 226 1,769 1,801 1,820 1,894 1,918 1,933 HY18 FY18 Sales Settlements² HY19 HY18 FY18
Slide 60: Communities lots movement
For personal use only 943 (908) 3,842 266 (198) 949 3,231 3,266 881 813 HY18 FY18 Sales Settlements² HY19 HY18 FY18 Sales Settlements² HY19 1. Includes 100% of revenue from joint venture projects. 2. On adoption of AASB 15 from 1 July 2018, the recognition point of revenue (and associated units) on
Slide 61: Apartment settlement profile and presales by customer
For personal use only 38% H2 FY19 FY20 FY21 Local China Other offshore 11% 22% Apartment Presales by Customer 67% 19% 18% 16% 11% 11% 8% 6% 4% 3% 3% Sydney Melbourne Singapore London New York Boston 1. Major buildings in delivery only, reflecting total presales of $3.4b. 2. The recognition point of
Slide 62: Development pipeline summary
Target annual For personal use only turnover2 3,004 presold units and 1,985 units for rent across 23 major apartment buildings3 in delivery, with expected delivery H2 FY19 to FY21 3,004 Units 1,985 Units presold⁴ for rent 26,191 Units remaining 31,180 Units 1,000 - 2,000 $3.4b settlements $1.5b⁵ pre
Slide 63: Major urbanisation projects
Residential Commercial Remaining Project Delivery Completion Land payment For personal use only Region Project backlog backlog end value secured commenced1 date2 model units sqm ‘0003 ($b)4 Australia Barangaroo South, Sydney FY09 FY12 FY24 808 16 3.7 Staged payment Victoria Harbour, Melbourne FY01 F
Slide 64: Apartments in delivery
Total Units Presales1 Delivery City Project Building Ownership Presold For personal use only units presold1 ($b) date2 Residential for sale apartments Darling North, Harbour Place and Sydney Darling Square 577 100% 100% 577 0.8 FY19 Trinity House Darling Rise, Barker House and 390 100% 100% 390 0.5
Slide 65: Commercial buildings in delivery
City Project Capital model sqm '0001 Building Completion date2 For personal use only Melbourne Victoria Harbour Fund through3 39 839 Collins Street FY19 3 Sydney Barangaroo South Fund through 11 Daramu House FY20 Singapore Paya Lebar Quarter Joint venture 29 Retail FY20 London International Quarter
Slide 66: Secured pipeline yet to commence
For personal use only City Project # Buildings Sector sqm ‘0001 H2 FY19 FY20 FY21 FY22 FY23 Melbourne Melbourne Quarter 2 Office/Retail 69 Sydney Victoria Cross 1 Office 58 Brisbane Brisbane Showgrounds 1 Office 30 Milan Milano Santa Giulia 6 Office/Retail 191 London International Quarter London 5 O
Slide 67: Communities projects
Residential Commercial Completion For personal use only Project Location Land payment model backlog land backlog date1 lots2 sqm ‘0003 Communities Yarrabilba QLD Staged payment FY47 14,190 2,005 Elliot Springs QLD Land management FY61 10,635 1,050 Springfield Lakes QLD Land management FY26 3,340 22
Slide 68: Development funding and capital models
Urbanisation For personal use only Communities Apartments for Sale Forward sale Joint venture structure • Office: Daramu House, Barangaroo South, Sydney • Paya Lebar Quarter, • St Marys - Jordan Springs, Project • Darling Square, Sydney • Residential for rent: Cooper Singapore Sydney examples • Elep
Slide 69: Land payment models
For personal use only More price certainty to More development risk and land owner value share to land owner Land payment Upfront payment Staged payment Land management model 1 2 3 4 5 Outright land Discretionary draw Option Fixed payments Residual land value Overage purchase down When pricing is On
Slide 70: For personal use only
Image: 25 King, Brisbane For personal use only
Slide 71: Construction revenue and backlog realisation
For personal use only Construction (excl. Engineering and Services) Engineering Services Region Australia Asia Europe Americas Australia Australia Revenue last 6 months $2.1b $0.2b $0.5b $2.4b $1.1b $0.4b realisation Backlog H2 FY19 27% H2 FY19 39% H2 FY19 44% H2 FY19 33% H2 FY19 27% FY20 37% FY20 5
Slide 72: Construction segment overview
For personal use only • Provides project management, design and construction services, Construction Construction predominantly in the defence, mixed use, commercial and residential (ex E&S) sectors HY18 HY19 HY18 HY19 • Financial returns are generated via project management and % Operating EBITDA1 %
Slide 73: Construction EBITDA and margin by region
For personal use only HY18 HY19 HY18 HY19 107.4 64.7 5.8% 29.2 24.1 3.0% 3.0% 3.9% (173.5) (473.7) 0.5 3.5 10.3 19.1 0.2% 1.8% 1.2% 1.0% (11.3%) (31.1%) Australia Engineering Asia Europe Americas Australia Engineering Asia Europe Americas (ex E&S) and Services (ex E&S) and Services HY18 HY19 HY18 HY
Slide 74: Construction backlog by sector and client
For personal use only Construction (ex E&S) Engineering and Services Australia¹ Asia Europe Americas 20.7 20.6 21.1 21.4 17.3 16.2 5.5 4.9 5.9 6.6 29% 3.0 3.6 $21.4b Backlog 15.2 15.7 15.2 14.8 Revenue 13.2 13.7 5% 62% 4% FY14 FY15 FY16 FY17 FY18 HY19 Transport Residential Hotel/Entertainment Lendle
Slide 75: New work secured and backlog by region
For personal use only $b Australia Asia Europe Americas Total HY18 HY19 HY18 HY19 HY18 HY19 HY18 HY19 HY18 HY19 Building 2.8 2.2 0.1 0.2 1.0 0.1 1.5 1.8 5.4 4.3 Engineering 3.0 2.0 3.0 2.0 Services 0.4 0.4 0.4 0.4 Total new work secured revenue 6.2 4.6 0.1 0.2 1.0 0.1 1.5 1.8 8.8 6.7 $b Australia As
Slide 76: Backlog movements and book to bill
For personal use only 6.7 (6.7) 4.6 (3.7) 22.4 0.3 21.4 13.8 (0.1) 21.1 13.2² 12.4 Book to bill¹: 1.0 Book to bill¹: 1.3 HY18 FY18 New work Revenue FX and HY19 HY18 FY18 New work Revenue Other HY19 secured realised Other secured realised 0.1 (0.5) 1.8 (2.4) 1.5 1.5 6.5 6.3 0.5 6.2 0.1 1.2 Book to bi
Slide 77: Major Australian building projects
Contract Contract value Secured Completion Project Location Sector For personal use only type3 ($m) date date4 Crown Sydney Hotel Resort NSW MC 1,079.4 FY15 FY21 Hotel/Entertainment New Air Combat Capability - RAAF Williamtown NSW MC 853.9 FY15 FY19 Defence AIR 7000 Phase 2B SA MC 470.0 FY16 FY20 De
Slide 78: Major Australian engineering projects
Contract Contract value Completion Project Location Secured date Sector For personal use only type3 ($m) date4 Melbourne Metro Tunnel Project VIC D&C 1,746.7 FY18 FY24 Transport NorthConnex M1 / M2 Tunnel NSW D&C 1,313.3 FY15 FY20 Transport 5 WestConnex 3A M4-M5 Link NSW D&C n/a FY19 FY24 Transport
Slide 79: Major Asia and Europe projects
Contract Contract value Secured Completion Project Location Sector For personal use only type3 ($m) date date4 Paya Lebar Quarter Singapore GMP 860.5 FY16 FY20 Commercial and Residential The Lifestyle Quarter – Retail Kuala Lumpur MC 521.9 FY18 FY22 Commercial Contract Contract value Secured Complet
Slide 80: Major Americas projects
Contract Contract value Secured Completion Project Location Sector For personal use only type3 ($m) date date4 Jacob K. Javits Convention Center New York LS 867.4 FY17 FY21 Hotel/Entertainment 520 Park Avenue New York GMP 443.0 FY14 FY19 Residential New York Methodist Hospital New York CM 435.4 FY16
Slide 81: For personal use only
Artist’s impression: Sunshine Plaza Mall, Maroochydore For personal use only
Slide 82: Investments segment structure and drivers
For personal use only Ownership Earnings Operating Earnings Capital intensive activities Capital light activities Invested capital Funds FUM / Assets Co-investment Retirement US Military US Telco Retail Asset Military Management positions in Living Housing Infrastructure Management Housing Platform
Slide 83: Investments segment results
For personal use only • Owns and/or manages investments including a leading wholesale HY18 HY19 investment management platform and also includes the Group’s % Operating EBITDA (ex E&S)1 % 39 42 ownership interests in property and infrastructure co-investments, ROIC % 16.5 13.6 Retirement Living and
Slide 84: Investments EBITDA, ownership and operating earnings
For personal use only HY18 HY19 HY18 HY19 383.1 319 267.4 273.2 198.4 203 97.1 64 70 18.7 33.3 31.2 (0.1) 10.3 Australia Asia Europe Americas Total Ownership interests¹ Operating earnings² Co-investments Retirement ownership Infrastructure⁴ Australia Asia Americas 3.1 3.4 3.6 3.1 3.4 3.6 10% 10% 14%
Slide 85: Funds under management growth and mix
For personal use only CAGR² of 17.8% 34.1 30.1 26.1 23.6 21.3 16.3 FY14 FY15 FY16 FY17 FY18 HY19 Retail Office Industrial Residential Other Australia Asia Europe Americas 2% 2% 1% 3% 5% 23% $34.1b 44% $34.1b Funds Under Funds Under 49% Management Management 71% 1. The Group’s assessment of market va
Slide 86: FUM and AUM movements
For personal use only 2.7 (0.5) 1.2 0.6 34.1 0.4 24.1 1.1 (0.5) 0.7 30.1 22.4 28.3 21.2 HY18 FY18 Additions Divest- Revaluations FX and HY19 HY18 FY18 Additions Divest- Revaluations Other HY19 ments Other ments 0.5 0.2 8.0 1.0 - 0.2 - - - 1.6 1.4 1.4 6.3 5.7 HY18 FY18 Additions Divest- Revaluations
Slide 87: FUM by fund
FY18 HY19 Australia FUM Fund type Asset class For personal use only ($b) ($b) Australian Prime Property Fund Retail Core Retail 5.4 5.8 Australian Prime Property Fund Commercial Core Office 4.6 5.0 Lendlease International Towers Sydney Trust Core Office 4.1 4.4 Managed Investment Mandates Core Vario
Slide 88: Fund metrics
For personal use only ARIF7 1 ARIF7 3 APPFR2 APPFC3 APPFI4 LLITST5 LLOITST6 PPPL8 LLRP9 (Somerset) (Jem) Total assets $b 5.8 5.0 1.0 4.4 2.6 0.8 1.6 1.5 1.3 Gearing % 17.7 5.7 5.9 13.7 18.7 59.6 42.3 35.8 - Co-investment % 1.7 8.0 10.8 15.0 2.5 14.4 20.1 6.1 - Co-investment $m 77.3 362.0 94.1 555.8
Slide 89: Co-investments
HY19 Lendlease interest FY18 HY19 Australia co-investments For personal use only (%) ($m) ($m) Lendlease International Towers Sydney Trust 15.0 515.1 555.8 Australian Prime Property Fund Commercial 8.0 292.0 362.0 Australian Prime Property Fund Industrial 10.8 74.6 94.1 Craigieburn Central 25.0 80.7
Slide 90: Asset management AUM
For personal use only HY19 GLA2 FY18 HY19 sqm '000 ($b) ($b) Australia 749.4 7.3 7.6 Asia 285.9 4.6 4.9 Europe 141.7 0.8 0.8 Total 1,177.0 12.7 13.3 AUM Avg portfolio life Housing units Lodging units Total units ($b) (years) Total 13.3 40,095 12,500 52,595 37 1. The Group's assessment of market valu
Slide 91: Retirement Living
For personal use only HY18 HY19 Long term growth rate % 3.5 3.5 1,359 1,303 Discount rate % 12.3 12.3 1,229 Average length of stay - ILUs years 11.5 11.5 Number of established units no. 12,664 12,782 Units resold no. 325 402 2 Development Pipeline3 no. 5,040 4,038 Pipeline $b 2.0 1.6 Sales/Settlemen
Slide 92: For personal use only
This document (including the appendix) has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) For personal use only (Lendlease) in good faith. Neither Lendlease (including any of its controlled entities), nor Lendlease Trust (together referred to as the Lendlease Group) m