Lennar Corporation · NYSE:LEN
Lennar — Lennar Corp /New/ — Corporate Update (March 2009)
17 slides from Lennar's corporate update, Mar 31, 2009
Slide 1: Additional Unconsolidated Joint Venture Disclosures
Exhibit 99.2 Additional Unconsolidated Joint Venture Disclosures
Slide 2: Disclaimer Statement
Disclaimer Statement This presentation includes "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our business, financial condition, results of operations, cash flows, strategie
Slide 3: Joint Ventures Additional Disclosures
Joint Ventures Additional Disclosures Our unconsolidated JV disclosures are made in accordance with generally accepted accounting principles. Based upon investor / analyst requests, we are providing additional joint venture disclosures which we believe will be useful in evaluating our joint ventures
Slide 4: Detailed JV Information
Detailed JV Information 2
Slide 5: New - Ten Largest Joint Venture Investments
Detailed Joint Venture Information New - Ten Largest Joint Venture Investments 10 Largest Joint Ventures (based on LEN investment) as of February 28, 2009 (Dollars in Thousands) Remaining JV JV Debt Homes/ Partner JV Year LEN Total JV Gross Recourse Reimbursement Net Recourse Total Debt Without Tota
Slide 6: New - Types of Joint Venture Partners
Detailed Joint Venture Information New - Types of Joint Venture Partners As of February 28, 2009 (Dollars in Thousands) Gross Recourse Net Recourse Total Debt JV Debt Total JV Debt Reimbursement Debt Without Recourse Total JV Total JV to Total Remaining Homes/ Partner Type Assets to Lennar Agreement
Slide 7: Detailed JV Debt Disclosures
Detailed JV Debt Disclosures 5
Slide 8: New – JV Composition by Type of Debt
Detailed JV Debt Disclosures New – JV Composition by Type of Debt As of February 28, 2009 (Dollars in Thousands) There has been significant progress on reducing the number of joint ventures, with extra focus on joint ventures with recourse debt Feb-09 Nov-08 Nov-07 Nov-06 JVswith recourse debt 36 41
Slide 9: New - Lennar Cash Payments for Recourse Reductions
Detailed JV Debt Disclosures New - Lennar Cash Payments for Recourse Reductions (Dollars in Millions) $1,764 Lennar cash payments to re-margin or $156 pay-down loans as part of the recourse reductions $1,034 $199 $19 $520 $474 Nov-06 Nov-07 Nov-08 Feb-09 7
Slide 10: New - Future JV Debt Maturities
Detailed JV Debt Disclosures New - Future JV Debt Maturities (Dollars in Thousands) Principal maturities of JVs' debt are as follows: Debt Without Gross Net Debt Without Recourse Recourse Debt Reimbursement Recourse Debt Recourse To Lennar To Lennar to Lennar Agreements to Lennar Excluding LandSourc
Slide 11: Condensed Balance Sheets
Detailed JV Debt Disclosures Condensed Balance Sheets (Dollars in Thousands) February 28, November 30, 2009 2008 2007 2006 Assets: Cash and cash equivalents $ 103,950 $ 135,081 $ 301,468 $ 276,501 Inventories 7,053,539 7,115,360 7,941,835 8,955,567 Other assets 408,985 541,984 827,208 868,073 $ 7,56
Slide 12: Detail of Total Debt Balances
Detailed JV Debt Disclosures Detail of Total Debt Balances (Dollars in Thousands) February 28, November 30, 2009 2008 2007 2006 Lennar's net recourse exposure $ 351,542 $ 392,450 $ 794,934 $ 1,102,920 Reimbursement agreements from partners 122,413 127,428 238,692 661,486 Lennar's maximum recourse ex
Slide 13: Lennar’s Net Recourse Debt Exposure
Detailed JV Debt Disclosures Lennar’s Net Recourse Debt Exposure (Dollars in Thousands) February 28, November 30, 2009 2008 2007 2006 Sole recourse debt $ - $ - $ - $ 18,920 Several recourse debt - repayment 74,840 78,547 123,022 163,508 Several recourse debt - maintenance 144,439 167,941 355,513 56
Slide 14: Corporate Governance
Corporate Governance 12
Slide 15: New – Summary of our JV Corporate Governance
Corporate Governance New – Summary of our JV Corporate Governance Joint ventures have been a successful and consistent business strategy for Lennar since the mid- 1970s Each joint venture is governed by an executive committee consisting of members from each of the partners of that JV We are the mana
Slide 16: New – Summary of our JV Corporate Governance (continued)
Corporate Governance New – Summary of our JV Corporate Governance Lennar has never siphoned cash from one joint venture to another JV Lennar has never pledged its interest in any joint venture for the benefit of another JV Lennar does not use its investment in one joint venture as collateral for deb
Slide 17: New - JV Interests Are Prohibited From Being Pledged
Corporate Governance New - JV Interests Are Prohibited From Being Pledged Example – sample language in a loan agreement that prohibits the pledging of our interest in one joint venture for the benefit of another: “Borrower will not suffer to occur or exist, whether occurring voluntarily or involunta