Lendlease Group · ASX:LLC
Lendlease — Non-Deal Roadshow (May 2006)
108 slides from Lendlease's roadshow presentation, May 19, 2006
Slide 1: Stock Exchange Announcement: UK/US Investor Roadshow
19 May 2006 The Manager The Manager Companies Section Companies Section Australian Stock Exchange Limited New Zealand Exchange Limited Pages: One hundred and eight {108} pages Dear Sir STOCK EXCHANGE ANNOUNCEMENT LEND LEASE CORPORATION LIMITED UK/US INVESTOR ROADSHOW ~ 10 — 16 MAY 2006 Lend Lease CO
Slide 2: King of Prussia Mall Investor Roadshow
Lend Lease King of Prussia Mall Investor Roadshow US - May 14, 2006
Slide 3: King of Prussia Mall - King of Prussia, PA
King of Prussia Mall - King of Prussia, PA Built: The Plaza 1961: The Court 1981 Square footage: 2.8 million (incl. Pavilion) Purchased: 50% in December 1996 by Lend Lease for $110M (uss) Joint Owner: Kingmak Associates The largest enclosed retail shopping mall in the eastern U.S. Only Mall of the A
Slide 4: Aerial Photograph
Slide 5: The Plaza at King of Prussia
ie ane The Place at king of Prussia
Slide 6: The Court and The Plaza Levels and Tenants
LT An RAEI | Ti The Court - 2 Levels Macy's Bloomingdales 100 specialty stores The Plaza ~ 2 Levels JC Penney Sears Lord & Taylor Strawbridge Neiman Marcus Nordstrom 250 specialty stores ‘li |
Slide 7: Ownership and Management Contract
100% 22.5% 50% {50% Management Contract ; Kravco Simon Company
Slide 8: Philadelphia is 5th largest metro area
Philadelphia is 5th largest metro area =Total population ~5 8 million Total Trade Area Population (million) * Primary Trade Area (% of sales) Secondary Trade Area (% of sales} Tertiary Trade Area (% of sales) Number of Households (million) Median Household Income ($) Average Household Income ($) Med
Slide 9: Competition Proximity to KOP
Competition Proximity to KOP Exton Square Mall 15 miles W Montgomery Mall 20 miles NE Plymouth Meeting Mall 10 miles E Franklin Milis 30 miles E Willow Grove Park Mall 20 miles E Suburban Square 410 miles SE Following weak job growth and population loss in the mid 1990's, Philadelphia turned around
Slide 10: Anchor and In-Line Tenants
“Tho Plaza In-Line Tenants JC Panney Neiman Marcus - 438,775 | Nordstiom: 225.000 - 215,252 Sears 20,00 699,027 1,800,108 The Court In-Line Tenants Bicomingdale’s Subiotal 248,921 481,727 730,648 Ollparcels 53584 Se Total Court and Plaza Tenants 4,433,586 1,180,754 2,614,340 * These Anchors own thei
Slide 11: In-line Tenancy Rollover Statistics
In-line Tenancy Rollover Statistics — The Court & The Plaza 45,751 47 47 2006 142,933 148 19.8 2007 72,075 75 27.0 2008 83,476 a7 35.7 2009 147,801 15.3 51.0 2010 136,238 14.4 65.1 2011 86,364 9.0 744 2012 36,135 3.8 TT 2013 89,248 9.2 87.0 2014 60,570 6.3 93.2 2015+ 65,340 68 100.0 DIRECTOR) 5 | 10
Slide 12: Strong In-Line tenant sales growth has driven rent increases
1000, Strong In-Line tenant sales growth has driven rent increases 7 ao 800; The Plaza In-Line Tenants - Comparable Sales $m 317 338 369 = 6004 - per Sq Ft 516 565 578 2 The Court In-Line Tenants ” 2 400; - Comparable Sales $m 89 93 96 n 200; 0 2003 2004 2005 Total Comparable Sales $m 809 848 867 ~%
Slide 13: Lend Lease 50% Share (US$ million)
Lend Lease 50% Share (US$ million) In-Line Tenancy Occupancy Net Operating Income Interest Expense Investment Income Loan Principal Amortization Lend Lease Cost Basis Lend Lease Fair Value Net growth from 2006-2010 should benefit from the rollover of 65% of in-Line Tenancy, which are generally below
Slide 14: Rent growth and firmer capitalization rate underpin growth
Both rent growth and firmer capitalization rate have underpinned strong growth King of Prussia - 5 Year Performance Net Operating Income 3.0% || (Proiected) $45.3 | $45.3) $45.0] $47.2) $50.4 8.0% || Valuation ‘Cap Rate’ % 807] 7.98) 7.10) 635] 5.80 7.0% |) 100% Market Value Free & 6.0% || Clear $56
Slide 15: Management and Structure
Management and Structure » “Evergreen” management contract fo Kravco Simon Company (50% owned by Simon ~ 285 properties in US) Property is subject to two fully amortizing loans maturing in 2017 at fixed rates of 7.5% and 8.5% Performance King of Prussia has performed very strongly over the past thre
Slide 16: Bovis Lend Lease Americas Investor Roadshow
Lend Lease Bovis Lend Lease Americas Investor Roadshow US - May 15, 2006
Slide 17: Agenda
8:55 — 9:00 9:00 - 10:40 10:40 - 11:00 17:00 — 11:30 11:30 - 12:00 Box Lunch Bovis Lend Lease - Introduction Americas Business Update Hunt/Bovis Alliance-Mets Stadium Baptist Hospital Medical Center Overview WTC Overview Lunch in bus Bob Johnston, Global Chief Executive Officer Pete Marchetto, Ameri
Slide 18: Bovis Lend Lease
Bovis Lend Lease * ls aleading construction management business in the Americas with operations in the United States and Latin America * Has a track record of reliable and profitable performance * Has leading positions in the Northeast, South & Central regions and in the multi-family and healthcare
Slide 19: Office locations
Atlanta, GA Boston, MA Charlotte, NC Chicago, IL... Columbus, OF Dallas, TX Ithaca, NY Los Angeles, CA -- Las Vegas, NV.” Miami, FL Nashville, TN New York, NY Orlando, FL. Princeton, NJ =. Raleigh, NC San Francisco, CA Tampa, FL Washington, D.C. Buenos Aires, Argentina Mexico City, Mexico S4o Paulo,
Slide 20: Regional operations and functions
Boston Miami New York Hhaca Princeton Washington DC Nashvile Orlando: Atlante Chartotte Raleigh Tampa Chicago Columbus Dallas Las Veges Los Angeles San Francisco Argentina Mexico iT Lagat Risk insurance Corporate Afets Finance National Saley Global Mult-sites Human Resources
Slide 21: Building Design & Construction Giants rankings
GIANTS 300 Building, Design & Construction Giants 300 (July 1, 2005) Overall Rankings - Bovis Lend Lease is ranked the 2nd largest construction manager in 2005 and has ranked among the top three construction managers for ten consecutive years by Building Design & Construction. Also, Bovis Lend Lease
Slide 22: 2005 revenue by market sector
Industrial Retail 1% 2% Other Senior Living 2%, 3% Pharmaceutical 5% Residential 28% Government 6% Mixed Use 8% Ed ucton_/ Ofice Healthcare i 9% 26% 2005 Total Revenue: 2.8 billion
Slide 23: Our Competitive Advantages
Lend Lease Our Competitive Advantages Investor Roadshow US - May 15, 2006
Slide 24: Our Competitive Advantages
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Slide 26: The Business Overview
Lend Lease The Business Overview Investor Roadshow US - May 15, 2006
Slide 27: Presenters
Princeton ington HcLOWh Reston, Vig
Slide 28: Jeff Arfsten
Jeff Arfsten
Slide 29: Mike Hampton, Executive Vice President
Ritz Carlton at Bank of America Tower, North Carolina Executive Vice President Mike Hampton The Stanbury, Georgia The Place at Channeiside, Florida 44
Slide 30: Terry Brantley
Terty Brantley
Slide 31: Profit in US$ and A$ millions
” A$ earnings impacted by devaluation of USD & impact of hedging ' Strong forward workbook and positive economic outlook has business well positioned for solid earning growth $Millions 70- 60- 50-7 404 2001 2002 2003 2004 Profit in US$Millions 21.5 33.6 35.3 34.1 Profit in ASMillions 34.5 51.9 61.6
Slide 32: GPM by Region, Sector and Service Type
GPM By Region Multsite 11% Healthcare 11% GPM by Sector 43% GPM by Service Type 17
Slide 33: Backlog and projects not included
$Millions 2007 185- Projects not included at ; December 2005: 170- : 155+ ~ $550 Million Mets Stadium in 140+ alliance with Hunt Construction 125- : 1104 $500 Million WTC Memorial 95+ Project a0) * $1.1 Billion WTC Transit Hub in 6) | JV with Fluor, Skanska, & 50 a Granite Construction Jun-02 & Jun-
Slide 34: Backlog by year
$Millions 160 140 120 100 TOTAL 2007 2008 2009 Actual at Jun-05 @ Actual at Dec-05 " Backlog at December 2005 shows strong secured position for FY07 Recent wins provide long-term earnings potential of c$15M in FY08 and FY09 49
Slide 35: Major secured projects
nl il | BP Real Secured Malis “$250 pa x HCA / Triad Secured Healthcare $200 + > Mets Stadium Secured Sports $550 > WTC Memorial Secured Cultural $500 > Farley Post Office Preconstruction Mixed $1,000 > WTC Transit Hub Secured Transport $1,100 > NY Presbyterian Hospital Secured Healthcare $150 + > E
Slide 36: Growth Outlook
Lend Lease Growth Outlook Investor Roadshow US - May 15, 2006
Slide 37: Growth in US Market and by State
Growth in US Market Growth by State $'s in Billions $s in Billions #2006 2008 © 2010 ©2006 © 2008 @ 2010 The U.S. construction market is expected to grow by 3% pa from $211 billion in 2006 to $233 billion in 2010 All of BLL’s chosen sectors are expected to have positive growth through the forecast p
Slide 38: States with Largest Population
States with Largest Population pg ao a) c ° a MANN QO D ET) eomoaoasS: U.S. Census Bureau estimates population growth of 30% from 281 million to 364 million people between 2000 and 2030. « 88% of the U.S. population growth will occur in the South and West between 2000 and 2030. CA TX NY FL iL PA OH
Slide 39: U.S. Multifamily Construction
Construction Market U.S. Multifamily Construction 30.0% 25.0% 20.0% 15.0% 10.0% $'s in Billions 5.0% 0.0% eBueyo sA-u0-4A -5.0% 2005 2006 2007 2008 2009 2010 Comments: - After several years of booming construction levels, the Multifamily market is expected to stabilize over the next year, however si
Slide 40: U.S. Healthcare Construction
Construction Market U.S. Healthcare Construction Comments: The U.S. is currently in the middle of the most significant period of hospital construction and expansion in the past 50 years. Robust demographics including the growing population and growing baby boom generation will dictate long term grow
Slide 41: Opportunity for growth in market sectors and regions
Significant opportunity for growth exists in the following Market Sectors: » Healthcare > Multi-sites » Sports (New York Metropolitan Area) Significant opportunity for growth exists in the following Regions: « Florida » West Coast » Las Vegas 26
Slide 42: Healthcare activity map
Lo Z a Healthcare Activity where Bovis Lend Lease has >$50M in Revenues Healthcare Activity where Bovis Lend Lease has <$50M in Revenues Healthcare Activity where Bovis Lend Lease has NO Market Share Source: MeGraw Hil Construction, December 2005 2
Slide 43: Integrated Real Estate Services
Integrated Real Estate Services Asset Management Design & Procurement Management Construction Management Facilities Management International Account Managemen (oc oo lue Creation Enduring Alliance Relationships 5000 Projects Delivered Per Annum Zero Injuries in 2005 Delivery Time Cut up to 40% Perfo
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Slide 45: New York sports franchises and venues opportunity
= Nine (9) professional sports franchises representing the NFL, NHL, NBA and MLB » Eight (8) new stadium/arena construction and renovation programs planned » Major convention center expansion planned (Jacob Javits Center) » First NASCAR track in the Northeast planned for Staten Island 30
Slide 46: Risk Management
Lend Lease Risk Management TT Investor Roadshow : 2 US — May 15, 2006
Slide 47: Peter Marchetto, CEO
Peter Marchetto CEO Metso oe | Sieve Clout loa Aud / | ‘ y
Slide 48: Risk management policies and standards
» Core Policy Document/Code of Conduct » Limits of Authority * Global Minimum Project Standards (GMPS) » EH&S Manual » Global Minimum Financial Standards » Group Policies B
Slide 49: 1c © Ss 2D) Rc
1c © Ss 2D) 2 Rc
Slide 50: People
People - Recruiting — structure, employee referrals, HireDesk » Retention — project bonuses, development, LTI » Training — onboarding, Bovis Works, IDPs, emerging managers Effectively managing growth. » Recruiting, retention, and training. » Diversification, even if it means turning away work. Maint
Slide 51: Contract risk terms
Guarantee time, price and quality of the work. No design risk in the United States Enter into contracts directly with subcontractors. Entitled to Changes (time and money) for: * Qwner/Architect/3" party Acts or Omissions. » Typical Force Majeure (fire, weather, strikes, Acts of God, etc.} » Terroris
Slide 52: Incident & Injury Free
Lend Lease Incident & Injury Free Investor Roadshow US - May 15, 2006
Slide 53: EH&S Team Fully Engaged
> EH&S Team Fully Engaged » Bovis Lend Lease US Operations — Executives, Field Operations working towards a common goal * Real progress with Falls Mandate » Bovis Lend Lease ‘Safety Academy’ recommendation » Just Culture - Strong position with staff 3B
Slide 54: Falls Mandate
This Falls Mandate is the next logical step in our Incident & Injury Free Journey. “Bovis Lend Lease will create a work environment where people are not exposed to the risk of falling or being struck by falling materials.” Re)
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Slide 56: Summary of Bovis Lend Lease strengths
> Track record of profit growth since acquisition by Lend Lease » Largest backlog in the history of the Bovis Lend Lease Americas business Established market positions in key American geographies » Strong diversification in key market sectors » Seasoned construction professionals Proven risk managem
Slide 57: Addendum
Lend Lease Addendum Investor Roadshow US - May 15, 2006
Slide 58: Trump International Hotel & Tower - Chicago, IL
Trump International Hotel & Tower - Chicago, IL Client: The Trump Organization Type of Work: New Construction Scope of Work: The Trump International Hotel & Tower will boast 90 floors, 2.6 million sf and reach 1,125 ft into the Chicago skyline - the largest building in Chicago since Sears Tower in 1
Slide 59: Mets Stadium - Flushing, New York
Mets Stadium - Flushing, New York » Client: New York Mets Type of Work: Construction Scope of Work: Hunt-Bovis Strategic Alliance is providing pre- construction services for the planned New York Mets new baseball stadium. The venture, of which Hunt has 55% and Bovis Lend Lease has 45%, is in exclusi
Slide 60: World Trade Center Memorial - New York, NY
World Trade Center Memorial - New York, NY Client: World Trade Center Memorial Foundation, Inc. Type of Work: Cultural Scope of Work: Site preparation work will take approximately 4-8 weeks and include: debris removal, engineering, surveying work, delivery of construction materials, and protection o
Slide 61: One Rincon Hill - San Francisco, CA
One Rincon Hill - San Francisco, CA = Client: Urban West Associates Type of Work: CM-General Contracting Scope of Work: Two-phase development will include two cast-in-place concrete towers, 61- stories and 49-stories respectively, above a full-site podium structure. The podium structure will house a
Slide 62: The Orion - West 42nd Street, New York
The Orion — 350 West 42nd Street - New York, NY Client: Extell Development Company Type of Work: Residential Scope of Work: This new 60-story, 632,000 sf high- end residential building — The Orion — will be constructed from reinforced cast-in-place concrete; the exterior will be a unitized hybrid cu
Slide 63: Atlantic Avenue - Boston, MA
500 Atlantic Avenue - Boston, MA Client: Extell Development Company Type of Work: Mixed-use Development Scope of Work: This 900,000 sf project includes a five-star hotel, high-end luxury condominiums having 424 hotel rooms on the lower floors and 130 condominiums above it, 5-Star restaurant, 200 sea
Slide 64: The Met - Miami, FL
The Met 1 - Miami, FL Client: MDM Residences, Ltd. Type of Work: Residential Scope of Work: 40 story condominium project plus 2 stories of roof top mechanical equipment structures. Total height is 458 ft above ground floor. The tower is "L" shaped with a 12 story parking garage and a parking structu
Slide 65: Riverside South - New York
Riverside South - New York, New York Client: Extell Development Company Type of Work: Residential Scope of Work: Building H will become a 427,000 sf residential tower to rise 30 stories and consist of 274 residential units ranging from studios to three bedrooms. Building | will become a 653,000 sf r
Slide 66: Duke University Medical Center - Durham, NC
Duke University Medical Center - Durham, NC Client: Duke University Medical Center Type of Work: Various Healthcare facilities Scope of Work: Over 919,000 sf of space, Eye Institute, Children’s Hospital, Duke Clinic, Vivarium, Student Health Clinic, Medical Science Research, Heart Center. Constructi
Slide 67: BP Global Alliance, United States
BP Global Alliance, United States Client: BP Type of Work: Retail Service Stations, Convenience Stores and cther improvements to BP Facilities in the US and other countries Scope of Work: Retail site development services for BP’s retail network. Non-retail and new markets for BP continues to grow an
Slide 68: Global project management agreement with BP
Bovis Lend Lease awarded global project management agreement in early 2005 with BP Global Property Management & Services (GPM&S), BP’s centralized property management group. Houston -- A large focus of work involves the expansion of BP’s Houston Campus. * Master planning studies are currently ongoin
Slide 69: Actus Lend Lease Investor Roadshow
Lend Lease Investor Roadshow 16 May 2006 Mark Menhinnitt President, Actus Lend Lease
Slide 70: Actus Lend Lease history and milestones
2003 2004 2005 2006 Actus Lend Lease (Actus) created through a Joint Venture between Lend Lease (75%), Actus Corporation (12.5%) and PAK (12.5%). Army selects Actus for 1st Army RCI privatization project at Fort Hood, Texas. Navy/Marines select Actus to privatize housing at Beaufort and Parris Islan
Slide 71: Hensiet
Hensiet IpRIANONS ena 4 luogint Greake 2
Slide 72: Market Attractiveness and Competitive Position
Market Attractiveness Competitive Position Fundamentals remain consistent - deep market with long term visible earnings Requires moderate pursuit costs (chUS 0.5-1.0M) but has significant potential for add-on business Follow-on sub-markets now gaining traction ~- Barracks and Lodging projects expect
Slide 73: Actus Lend Lease: Market Attractiveness
Lend Lease Actus Lend Lease: Market Attractiveness
Slide 74: Strategic and Competitive Advantage
Family Housing Lodging Barracks Strategic & Competitive Advantage Large scale (>1000 homes/units) Achieve community outcomes Partners aligned with our values Able to innovate through sufficient control of the ORF petitive barriers to entry Strategic footprint ~ Follow-on business/Cross- SN ANNA SAAN
Slide 75: Typical Risk and Mitigation Approach
Typical Risk Mitigation Approach Design and construction risk All deals are negotiated — allows for extensive due diligence & negotiation of terms. Effective implementation of control processes Only take lump sum risk on 1 phase, limit 18 phase to 3-4 years, include adequate escalation factors Trans
Slide 76: Project structure and documents
Ground Lease Documents Development and D&C Finance Documents Project Compa Managing Member Member {Service} . {Actus} 7 : Design Builder (Actus) Ge Operating Aoreomont y Property Operating Documents Asset Manager {Actus) Property Manager Lend Li Residential)
Slide 77: Development and D&C fees funding
Note: Development & D&C fees are funded from development capital at closing & not from the cash waterfall
Slide 78: Excess funds and Actus equity returns
xcess Funds Actus Equity Returns {-12-18% cash on cash return)
Slide 79: Typical Deal Profile
Typical Deal Profile Project Size Cash Equity Annual Rent $US300M $US6-9M $US30-35M Typical Margin Profile (GPM) Development Bec Fee Asset Mgt. Property Mgt. Return on Equity Project Renelopiaeity + Development Fee) 3-~ 6% of D&C Value 4-6% of D&C Value 2~ 3% of Rent 2~ 3% of Rent 12-18% Cash-on- Ca
Slide 80: Privatization project timeline by service
2007 scetendas yeari 2008 (colendar year} 2 a3 2 AIR FORCE ARMY NAVY M@TargetProjects @ Fullow-an Projects l Nom-target Projects
Slide 81: New Sub-market: Unaccompanied Personnel Housing (Barracks)
Slide 82: New Sub-market: Lodging
Slide 83: Market Attractiveness: Future DoD Sectors
Slide 84: Actus Lend Lease: Competitive Position
Slide 85: Competitive Position: Summary
Slide 86: Competitive Position: Win Rate Analysis
Slide 87: Competitive Position: Military Family Housing
Slide 88: Competitive Position: Operational Skills
Slide 89: Actus Lend Lease: Case Study - Fort Campbell Family Housing
Slide 90: Case Study: Fort Campbell
Slide 91: Case Study: Fort Campbell Operating Performance
Slide 92: Case Study: Fort Campbell
Slide 93: World Trade Center Pre and Post 9-11
Slide 94: World Trade Center Site Pre 9-11
Slide 95: The Area
Slide 96: The Footprint
Slide 97: The Attack
Slide 98: Getting Organized
Slide 99: Getting Organized
Slide 100: Getting Organized
Slide 101: Excavation & Stabilization
Slide 102: Towers of Light
Slide 103: Rebuilding the World Trade Center
Slide 104: World Trade Center Memorial and Museum
Slide 105: World Trade Center Transportation Hub
Slide 106: Deconstruction of 130 Liberty Street
Slide 107: Fulton Street Transit Center
Slide 108: Disclaimer