Lendlease Group · ASX:LLC
Lendlease — H1 FY2020 Earnings Presentation
92 slides from Lendlease's earnings presentation, Feb 20, 2020
Slide 1: Lendlease Group 2020 Half Year Results Announcement, Presentation and Appendix
20 February 2020 For personal use only Lendlease Group 2020 Half Year Results Announcement, Presentation and Appendix Lendlease Group today announced its results for the half year ended 31 December 2019. Attached is the HY20 Results Announcement, Presentation and Appendix. ENDS For further informati
Slide 2: Development pipeline increases to $112b, underpins long term growth
20 19 February 22 August 2020 2019 2018 Development pipeline increases to $112b, underpins long term growth For personal use only For the half year ended 31 December 2019: • Group profit after tax of $313 million, earnings per stapled security of 55.5 cents: o Core profit after tax of $308 million a
Slide 3: For personal use only
20 19 February 22 August 2020 2019 2018 The Group added two new major urbanisation projects to its portfolio – Thamesmead Waterfront in London and a partnership with Google in the San Francisco Bay Area. These residential led projects have a combined estimated end development value of more than $36
Slide 4: For personal use only
20 19 February 22 August 2020 2019 2018 “The sale of the Engineering business is an important milestone that provides a clear pathway for our people, partners, clients and securityholders. It will allow the Group to focus on its core competitive advantages, with our aim of being the global urbanisat
Slide 5: For personal use only
20 19 February 22 August 2020 2019 2018 Investments ROIC of 10.7 per cent reflected strong fee income driven by growth in funds under management and the performance fee for the successful completion of Paya Lebar Quarter. For personal use only “We are shifting invested capital to our international r
Slide 6: For personal use only
20 19 February 22 August 2020 2019 2018 international gateway cities across the US and Europe in particular,” Mr McCann said. Construction backlog revenue for the core business is $14 billion. Beyond the current backlog, there is approximately $10 billion of work which the Group is in a preferred po
Slide 7: 2020 Half Year Results
For personal use only 2020 Half Year Results 20 February 2020 Paya Lebar Quarter, Singapore
Slide 8: Acknowledgement
For personal use only Lendlease HY20 Financial Results / 2 Acknowledgement As a developer, builder and manager of assets on land across Australia, we pay our respect to the traditional of Country owners, especially their elders past and present, and value their custodianship of these lands.
Slide 9: Group Performance
Lendlease HY20 Financial Results / 3 Artist’s impression: Salesforce Tower, Sydney Place For personal use only Steve McCann Group Group Chief Executive Officer and Managing Performance Director
Slide 10: Safety
Lendlease HY20 Financial Results / 4 Fatality Safety • Lendlease is saddened to report a fatality occurred following an incident on our operations during HY20 For personal use only • We express our sincere condolences to family, friends and colleagues • We remain committed to the safety of our peopl
Slide 11: Our approach
Lendlease HY20 Financial Results / 5 Our For personal use only approach
Slide 12: HY20 key achievements
Lendlease HY20 Financial Results / 6 HY20 key achievements Environmental • Task Force for Climate-related Financial Disclosure (TCFD) progress: For personal use only Social and − Four climate scenarios developed and published − Top 200 leaders engaged in climate related risks and opportunities works
Slide 13: Engineering and Services: Progress on exit
Lendlease HY20 Financial Results / 7 Engineering and Services: Progress on exit Non core • Non core segment reported as a discontinued operation in HY20 financial statements For personal use only segment • Sale of Engineering business to Acciona for $180m: − Expected to complete H2 FY20, subject to
Slide 14: HY20 result
Lendlease HY20 Financial Results / 8 Securityholder returns1 HY20 • Group profit after tax of $313m, earnings per stapled security of 55.5 cents, return on equity of 9.8%2 For personal use only result − Core profit after tax of $308m, earnings per stapled security of 54.6 cents, return on equity of
Slide 15: Executing on our strategy
Lendlease HY20 Financial Results / 9 Development pipeline increases to $112b, underpins long term growth For personal use only Executing on our strategy • Development pipeline $112b up from $74.5b1 • c.$36b of urbanisation projects secured: − Thamesmead Waterfront, London: $14.8b2 − San Francisco Ba
Slide 16: Urbanisation pipeline to drive future growth
Lendlease HY20 Financial Results / 10 Urbanisation pipeline ($b) Urbanisation production rate expected to accelerate Urbanisation • Production has averaged ~$4b p.a. in recent years For personal use only pipeline to 97.9 • Pipeline implies ~25 years of supply at current production rate drive future
Slide 17: Financial Performance
Lendlease HY20 Financial Results / 11 Artist’s impression: Victoria Cross Over Station Development, Sydney For personal use only Tarun Gupta Financial Group Chief Financial Officer Performance
Slide 18: Financial performance
Lendlease HY20 Financial Results / 12 Financial performance For personal use only $m HY19 HY20 Change Core Development 261 272 4% • PLQ retail; Victoria Cross Over Station Development joint venture; apartment settlements • EBITDA margin 2.3%, up 0.2ppt from HY19; reclassification of integrated proje
Slide 19: Cash flow
Lendlease HY20 Financial Results / 13 Cash flow movements HY20 ($m) Cash flow Cash conversion 5% in HY20 For personal use only 1,290 29 (125) • Low due to PLLACes maturity and timing of cash receipts (503) 406 1,097 Operating and Investing inflows: • Development settlements net of PLLACes $0.4b • Sa
Slide 20: Financial position
Lendlease HY20 Financial Results / 14 Financial strength Invested capital: Development Financial Capital structure For personal use only position • Gearing 14.7%1,2, up from 9.9% in FY19, net debt $2.3b: − Invested capital up $0.8b: $5.3b Up $0.5b o $0.5b Development, $0.3b Investments Development −
Slide 21: Portfolio Management Framework
Lendlease HY20 Financial Results / 15 Portfolio Management Framework For personal use only EBITDA mix Invested capital By segment By region 15% 41% 43% 42% $628m¹ $9.2b² 21% $9.4b² 48% 58% 16% 16% Development Construction Investments Development Investments Australia Asia Europe Americas (40 - 50%)
Slide 22: Core financial returns
Lendlease HY20 Financial Results / 16 Core financial returns For personal use only • Average Return on Equity FY16 – HY20: 13.0%1 Target 10 – 14% Development segment Construction segment Investments segment Average ROIC: FY16 – HY20 Average EBITDA margin: FY16 – HY20 Average ROIC: FY16 – HY20 11.5%
Slide 23: Operational Update
Lendlease HY20 Financial Results / 17 Artist’s impression: 30 Van Ness, San Francisco For personal use only Steve McCann Operational Group Chief Executive Officer and Managing Update Director
Slide 24: Growth in platform across target gateway cities
Lendlease HY20 Financial Results / 18 Growth in For personal use only platform across target gateway cities Development Construction Funds Under Pipeline ($b) backlog revenue ($b) Management ($b) Investments ($b) 112 37 4.0 35 15 16 15 16 3.7 14 3.3 3.4 30 3.0 71 76 26 24 49 49 FY16 HY20 FY16 HY20 F
Slide 25: Development Performance: Apartments
Lendlease HY20 Financial Results / 19 Apartments Apartment settlements and completions Development Performance 1H 2H Target 1,000 – 2,000 units p.a. For personal use only • 862 residential for sale apartment settlements across gateway cities including: 2,533 − London, Boston, Melbourne and Singapore
Slide 26: Development Performance: Commercial
Lendlease HY20 Financial Results / 20 Commercial Commercial building commencements Development Performance By sqm ‘000 Target 2 – 3 commencements p.a. For personal use only 8 • Development joint venture formed to deliver Victoria Cross Over Station 5 4 Development, Sydney: 0 1 288 − $1.2b major urba
Slide 27: Development Performance and outlook: Communities
Lendlease HY20 Financial Results / 21 Communities settlements Communities settlements Development Performance and outlook 1H 2H Target 3,000 – 4,000 lots p.a. For personal use only Communities • 836 lots settled, impacted by lower demand and tighter credit markets 3,912 3,402 • 620 lot sales 3,060 •
Slide 28: Construction performance and outlook
Lendlease HY20 Financial Results / 22 Performance and outlook1 Backlog revenue ($b) Construction • Global EBITDA margin 2.3%, up from 2.1% For personal use only • EBITDA of $101m, down 9% • Stable portfolio – revenue of $4.3b diversified by sector, client and geography 3.1 (4.3) • Revenue down 17% –
Slide 29: Investments: Operating earnings
Lendlease HY20 Financial Results / 23 Operating earnings Operating EBITDA ($m) Investments Performance and outlook1 1H 2H For personal use only • EBITDA of $120m, up strongly from $70m 144 − Growth in base fees and significant performance fee post completion of 133 Paya Lebar Quarter, Singapore 116
Slide 30: Investments: Ownership earnings
Lendlease HY20 Financial Results / 24 Ownership earnings Ownership EBITDA ($m) Investments Performance and outlook1 1H 2H For personal use only • EBITDA $135m, down from $203m: 536 − Lower asset value appreciation • Invested Capital $3.9b 379 350 345 Co-investments: − $1.9b of investments: o Alignme
Slide 31: Outlook
Lendlease HY20 Financial Results / 25 Artist’s impression: The Exchange TRX, Kuala Lumpur For personal use only Steve McCann Outlook Group Chief Executive Officer and Managing Director
Slide 32: Positioned for long term growth
Lendlease HY20 Financial Results / 26 Positioned for long term growth Outlook • Nearer term core business outlook – expect to convert a number of commercial and residential opportunities in H2 FY20 For personal use only • Total development pipeline of $112b: − Urbanisation capabilities increasingly
Slide 33: Questions
Artist’s impression: Milan Innovation District For personal use only Questions
Slide 34: 2020 Half Year Results Appendix
For personal use only 2020 Half Year Results Appendix 20 February 2020 Paya Lebar Quarter, Singapore
Slide 35: Overview
Victoria Harbour, Melbourne For personal use only Overview
Slide 36: Our business model
Lendlease HY20 Financial Results / 3 Our business For personal use only Our business model is how we generate earnings model The model is integrated when more than one segment is engaged on a single project Development segment Construction segment Investments segment Development of inner city mixed
Slide 37: Our globally diverse pipeline provides long term earnings visibility
Lendlease HY20 Financial Results / 4 Our globally diverse pipeline provides long term earnings visibility Globally $112.5b $14.2b $36.9b $4.0b For personal use only diverse Development Construction Funds Under Investments pipeline1 pipeline backlog revenue Management (FUM) Americas Europe Asia Austr
Slide 38: Global trends influencing our strategy
Lendlease HY20 Financial Results / 5 Global trends influencing our strategy For personal use only Global Technology, Urbanisation infrastructure Funds Growth digital and data Ageing population Sustainability In 2018, 55% of the world’s Global infrastructure spending Global assets under The exponenti
Slide 39: Sustainability
Lendlease HY20 Financial Results / 6 Sustainability For personal use only The Task Force on Climate-related Financial MSCI is an independent provider of research- UN Global Compact is a voluntary initiative In 1983, Lendlease Founder, Dick Disclosure (TCFD) provides a voluntary driven insights and t
Slide 40: Portfolio Management Framework
Lendlease HY20 Financial Results / 7 Portfolio Business model • Integrated model synergies For personal use only Management • Target EBITDA mix: o Development Framework o Construction 40 - 50% 10 - 20% o Investments 35 - 45% Capital allocation 2 Target returns • Focused on gateway cities • Group ROE
Slide 41: Group
Artist’s impression: Victoria Cross Over Station Development, Sydney For personal use only Group Image subject to change and further design development and planning approval
Slide 42: Income Statement
Lendlease HY20 Financial Results / 9 $m HY191 HY20 Income Revenue from contracts with customers 6,155 5,648 For personal use only Statement Other revenue Cost of sales 82 (5,774) 90 (5,142) Gross profit 463 596 Share of profit of equity accounted investments 192 65 Other income 206 276 Other expense
Slide 43: Statement of Financial Position
Lendlease HY20 Financial Results / 10 HY19 FY19 HY20 $m HY19 FY19 HY20 Statement of $m Current Assets Current Liabilities For personal use only Cash and cash equivalents 1,088 1,290 396 Trade and other payables 5,826 5,724 3,795 Financial Loans and receivables Inventories 2,196 2,863 2,050 2,238 1,8
Slide 44: Statement of Cash Flows
Lendlease HY20 Financial Results / 11 HY192 HY20 Statement of $m Cash Flows from Operating Activities For personal use only Cash receipts in the course of operations 8,071 7,321 Cash Flows Cash payments in the course of operations Interest received (8,862) 6 (7,664) 4 Interest paid in relation to ot
Slide 45: Cash conversion (FY16 – HY20)
Lendlease HY20 Financial Results / 12 Cash conversion (FY16 – HY20) ($m) Underlying • Underlying operating cash flow has been included to Total conversion against EBITDA of 84% For personal use only operating provide a more accurate cash comparator against Group EBITDA • This represents 84% of Group
Slide 46: Underlying operating cash flow
Lendlease HY20 Financial Results / 13 In HY20 Lendlease delivered underlying operating cash flow of $29m Overview HY20 $m Statutory Adjustments Underlying • Underlying operating cash flow is For personal use only underlying Cash Flows from Operating Activities Cash receipts in the course of operatio
Slide 47: Segment financial metrics
Lendlease HY20 Financial Results / 14 Operating Profit after Tax ($m) Operating EBITDA ($m) Segment HY19 HY20 HY19 HY20 For personal use only financial 272 273 metrics 179 186 226 199 261 255 111 101 76 59 Development Investments Construction Development Investments Construction ROIC1 (Development a
Slide 48: By segment
Lendlease HY20 Financial Results / 15 By segment Segment Revenue ($m) EBITDA ($m) Profit after Tax ($m) Invested capital ($b) For personal use only financial Development HY19 870 HY20 1,161 HY19 261 HY20 272 HY19 179 HY20 186 HY19 5.1 FY19 4.8 HY20 5.3 metrics Investments Construction 164 5,191 4,32
Slide 49: EBITDA by segment
Lendlease HY20 Financial Results / 16 Operating EBITDA by segment ($m) Revenue / $m Revenue HY19 HY20 EBITDA HY19 HY20 HY19 HY20 For personal use only EBITDA by Development Australia Asia 595 9 530 7 71 101 170 39 261 272 273 255 segment Europe Americas 223 43 492 132 31 58 56 7 111 101 (474) 23 Tot
Slide 50: EBITDA by segment, local currency
Lendlease HY20 Financial Results / 17 Operating EBITDA, local currency (m) Revenue / Asia SGDm¹ Revenue EBITDA HY19 HY20 For personal use only EBITDA by Development HY19 9 HY20 7 HY19 100 HY20 37 136 135 100 102 segment, Construction Investments 198 29 115 89 3 33 (4) 102 37 33 local currency Total
Slide 51: Exchange rates
Lendlease HY20 Financial Results / 18 Income Statement Statement of Financial Position Exchange Local Foreign HY19 1 FY19 2 HY20 3 Local Foreign HY194 FY195 HY206 For personal use only rates AUD AUD USD GBP 0.72 0.55 0.71 0.55 0.68 0.54 AUD AUD USD GBP 0.70 0.55 0.70 0.55 0.70 0.53 AUD SGD 0.99 0.97
Slide 52: HY20 regional EBITDA to PAT reconciliation
Lendlease HY20 Financial Results / 19 $m EBITDA Net interest D&A1 PBT Tax PAT HY20 regional Australia For personal use only Development 170 (3) (4) 163 (49) 114 EBITDA to Construction 59 - (4) 55 (17) 38 Investments 118 - (3) 115 (23) 92 PAT Total Australia Asia 347 (3) (11) 333 (89) 244 reconciliat
Slide 53: Debt metrics
Lendlease HY20 Financial Results / 20 HY19 FY19 HY20 Debt metrics Net debt 1 $m 2,276 1,425 2,294 For personal use only Borrowings to total equity plus borrowings % 35.5 29.9 34.2 1 Net debt to total tangible assets, less cash % 15.2 9.9 14.7 2 Interest cover times 8.1 8.8 7.4 Average cost of debt %
Slide 54: Debt facilities and maturity profile
Lendlease HY20 Financial Results / 21 Debt facilities1 ($m) Debt facilities Drawn Facility For personal use only and maturity 1,800 profile 960 755 725 562 564 564 568 568 303 303 343 318 318 Australian medium Syndicated Cash UK Bond Issue Club Revolving Asia Loan Facility US$ Reg. S notes Singapore
Slide 55: Key dates for investors
Lendlease HY20 Financial Results / 22 Key dates for HY20 results released to market / interim distribution declared Date 20 February 2020 For personal use only investors Securities quoted ex distribution on the Australian Securities Exchange Interim distribution record date 27 February 2020 28 Febru
Slide 56: Development Segment
Artist’s impression: Salesforce Tower, Sydney Place For personal use only Development Segment Image subject to change and further design development and planning approval
Slide 57: Development earnings drivers
Lendlease HY20 Financial Results / 24 ROIC target 10-13%; Invested capital $5.3b; Pipeline 1 $112.5b Earnings For personal use only drivers - Urbanisation Communities Telco Infrastructure Infrastructure Development Military Housing 21 major projects in 17 projects Development 9 gateway cities Busine
Slide 58: Development HY20
Lendlease HY20 Financial Results / 25 Overview Performance HY19 HY20 Development • Development of inner city mixed use developments, apartments, Core business EBITDA mix % 40 43 For personal use only communities, retirement, retail, commercial assets, and social and HY20 • economic infrastructure Fi
Slide 59: Development earnings / pipeline
Lendlease HY20 Financial Results / 26 EBITDA by region ($m) Pipeline1 by region ($b) Development HY19 HY20 HY19 HY20 For personal use only earnings / 261 272 112.5 pipeline 74.5 170 48.9 101 71 31.1 29.6 30.1 30.1 56 58 39 31 5.4 3.9 7.9 7 Australia Asia Europe Americas Total Australia Asia Europe A
Slide 60: HY20 development: Residential settlements
Lendlease HY20 Financial Results / 27 Residential Communities settlements HY19 HY20 HY20 Apartment settlements Units $m For personal use only development QLD Lots 173 $m 33 Lots 208 $m 49 Apartments for sale Australia NSW 294 65 5 2 Victoria Harbour - Collins Wharf 1 54 44 VIC 357 83 544 143 Other 3
Slide 61: Non city residential, commercial commencements and completions
Lendlease HY20 Financial Results / 28 Non City Project Commercial commencements Building Sector Capital model End value1 ($b) sqm ‘000 For personal use only residential Sydney Victoria Cross Over Station Development Victoria Cross Over Station Development Office / Retail Joint venture 1.2 58 develop
Slide 62: Residential apartments
Lendlease HY20 Financial Results / 29 Movement in presales – Apartments for sale Residential By units By value ($m) For personal use only apartments1 3,583 Australia Asia Europe Americas 3,615 Australia Asia 1,681 Europe (1,099) Americas 121 283 549 (862) 1,230 861 23 2,516 2,223 131 112 (7) 1,903 5
Slide 63: Residential communities
Lendlease HY20 Financial Results / 30 Movement in presales1 Residential By lots By value ($m) For personal use only communities 3,266 620 (836) 881 181 (209) – Australia 2,276 2,060 625 597 HY19 FY19 Sales Settlements HY20 HY19 FY19 Sales Settlements HY20 1. Includes 100% of revenue from joint ventu
Slide 64: Pipeline provides long term earnings visibility
Lendlease HY20 Financial Results / 31 Record secured pipeline1 of $112.5b controlled by invested capital of $5.3b Pipeline Apartments Target annual For personal use only turnover2 provides long 1,448 presold units and 1,752 units for rent across 11 major apartment buildings 3 in delivery, expected d
Slide 65: Major urbanisation project summary
Lendlease HY20 Financial Results / 32 Major Region Project Project Delivery secured commenced1 Completion date2 Residential Commercial Remaining backlog units backlog sqm ‘0003 end value ($b)4 Land payment model For personal use only urbanisation Australia Barangaroo South, Sydney Melbourne Quarter
Slide 66: Apartments settlement profile
Lendlease HY20 Financial Results / 33 Total Units Presales1 Delivery Apartments City Project Building units Ownership Presold presold1 ($b) date2 For personal use only Residential for sale apartments settlement London The Timberyard, Deptford Cedarwood Square 203 100% 85% 173 0.1 FY20 profile Boston
Slide 67: Commercial completion profile
Lendlease HY20 Financial Results / 34 sqm '0001 Completion date2 Commercial City Melbourne Project Melbourne Quarter Capital model Fund through3 51 Building Two Melbourne Quarter FY21 For personal use only buildings 4 Melbourne Melbourne Connect BOOT 27 Melbourne Connect FY21 5 Sydney Sydney Place J
Slide 68: Indicative conversion timing of secured commercial pipeline
Lendlease HY20 Financial Results / 35 Indicative conversion timing1 of secured commercial pipeline to FY24 Conversion of City Project Buildings Sector sqm ‘0002 FY20 FY21 FY22 FY23 FY24 For personal use only secured Melbourne Brisbane Melbourne Quarter Brisbane Showgrounds 1 1 Office Office / Retail
Slide 69: Indicative conversion timing of secured residential for rent pipeline
Lendlease HY20 Financial Results / 36 Indicative conversion timing1 of secured residential for rent pipeline to FY24 Conversion of City Project Buildings Sector Units FY20 FY21 FY22 FY23 FY24 For personal use only secured London London Elephant Park – Stage 1 The Timberyard, Deptford – Stage 1 1 1 R
Slide 70: Communities projects
Lendlease HY20 Financial Results / 37 Communities Land payment Completion Residential backlog land Commercial backlog For personal use only projects Project Yarrabilba Location QLD model Staged payment date1 FY47 lots2 14,070 sqm ‘0003 2,040 Elliot Springs QLD Land management FY61 10,555 1,050 Sprin
Slide 71: Urbanisation deal structuring
Lendlease HY20 Financial Results / 38 Development Communities Apartments for Sale Urbanisation Forward sale Joint venture structure For personal use only deal • Office: Daramu House, Barangaroo South, Sydney • Paya Lebar Quarter, • St Marys - Jordan Springs, structuring Project examples Sydney • Yar
Slide 72: Land payment and structuring models
Lendlease HY20 Financial Results / 39 Overview of land payment / structuring models and implication for timing and risk share Land payment For personal use only models1 More price certainty to land owner More development risk and value share to land owner Land payment Upfront payment Staged payment
Slide 73: Construction Segment
Southbank, Chicago For personal use only Construction Segment
Slide 74: Construction earnings drivers
Lendlease HY20 Financial Results / 41 EBITDA margin target 2-3%; Backlog $14.2b Earnings For personal use only drivers - Construction Non Core Construction Region Australia Asia Europe Americas Australia Revenue last 6 months $1.9b $0.1b $0.4b $1.9b $1.7b realisation Backlog H2 FY20 25% H2 FY20 33%
Slide 75: Construction HY20
Lendlease HY20 Financial Results / 42 Overview Performance HY19 HY20 Construction • Provides project management, design and construction services, EBITDA mix % 18 16 For personal use only predominantly in the defence, mixed use, commercial and residential HY20 sectors EBITDA margin New work secured
Slide 76: Construction earnings
Lendlease HY20 Financial Results / 43 EBITDA ($m) EBITDA margin Construction HY19 HY20 HY19 HY20 For personal use only earnings 111 3.9% 3.4% 101 3.0% 3.2% 2.1% 2.3% 1.8% 1.7% 1.0% 64 59 (3.3%) 32 19 24 14 4 (4) Australia Asia Europe Americas Total Australia Asia Europe Americas Total EBITDA Europe
Slide 77: Construction backlog
Lendlease HY20 Financial Results / 44 Backlog ($b) HY20 backlog by region Construction Australia Asia Europe Americas For personal use only backlog 15.2 15.7 15.2 15.6 14.2 37% 47% $14.2b 10% 6% FY16 FY17 FY18 FY19 HY20 HY20 backlog by client HY20 backlog by sector Lendlease Corporate Government Com
Slide 78: Construction backlog by region
Lendlease HY20 Financial Results / 45 Group ($b) Australia ($b) Construction For personal use only backlog by 15.6 3.1 (4.3) 1.9 (1.9) 14.8 region (0.2) 14.2 6.6 6.9 (0.2) 6.7 Book to bill¹: 0.7 Book to bill¹: 1.0 HY19 FY19 New work Revenue FX and HY20 HY19 FY19 New work Revenue Other HY20 secured r
Slide 79: Australia: Major Projects
Lendlease HY20 Financial Results / 46 Australia: Project Location Contract Contract Secured Completion type3 value4 ($m) date date5 Sector For personal use only Crown Sydney Hotel Resort NSW MC 1,081.7 FY15 FY21 Hotel/Entertainment Major Sydney Place AIR 7000 Phase 2B NSW SA D&C MC 713.0 485.0 FY19
Slide 80: Asia, Europe and Americas: Major Projects
Lendlease HY20 Financial Results / 47 Contract Contract Secured Completion Asia, Project Location type3 value 4 ($m) date date5 Sector For personal use only Asia Europe and The Exchange TRX - Retail Kuala Lumpur MC 534.8 FY18 FY22 Commercial Americas: Ardor Gardens Shanghai, China CM 207.7 FY19 FY22
Slide 81: Investments Segment
313@somerset, Singapore For personal use only Investments Segment
Slide 82: Investments earnings drivers
Lendlease HY20 Financial Results / 49 ROIC target 8-11%1; Invested capital $3.9b Earnings For personal use only drivers - Ownership Earnings Capital intensive activities Operating Earnings Capital light activities Investments Invested capital FUM / Assets Co-investment Retirement US Military US Telc
Slide 83: Investments HY20
Lendlease HY20 Financial Results / 50 Overview Performance HY19 HY20 Investments • Owns and/or manages investments including a leading investment Core business EBITDA mix % 42 41 For personal use only management platform and also includes the Group’s ownership HY20 interests in co-investments, Retir
Slide 84: Investments earnings / ownership
Lendlease HY20 Financial Results / 51 EBITDA by region ($m) Investments EBITDA by activity ($m) Investments HY19 HY20 HY19 HY20 For personal use only earnings / 273 255 ownership 199 203 135 118 120 109 70 33 31 23 10 5 Australia Asia Europe Americas Total Ownership interests¹ Operating earnings² In
Slide 85: Funds Under Management (FUM)
Lendlease HY20 Financial Results / 52 FUM ($b) Funds Under CAGR² of 13.6% For personal use only Management1 35.2 36.9 (FUM) 23.6 26.1 30.1 FY16 FY17 FY18 FY19 HY20 HY20 FUM by asset class HY20 FUM by region Retail Office Industrial Residential Other Australia Asia Europe Americas 4% 3% 2% 3% 5% 39%
Slide 86: FUM by region
Lendlease HY20 Financial Results / 53 Group ($b) Australia ($b) FUM1 by For personal use only region 2.6 (1.2) 0.2 36.9 0.8 (0.8) 0.1 0.2 25.1 0.1 24.8 24.1 35.2 34.1 HY19 FY19 Additions Divest- Revaluations FX and HY20 HY19 FY19 Additions Divest- Revaluations Other HY20 ments Other ments Asia ($b)
Slide 87: FUM by region: fund detail
Lendlease HY20 Financial Results / 54 FUM1 by Australia FUM Managed Investment Mandates Fund type Core Asset class Various FY19 ($b) 4.4 HY20 ($b) 5.2 For personal use only region Australian Prime Property Fund Commercial Australian Prime Property Fund Retail Core Core Office Retail 5.1 5.7 5.1 4.9
Slide 88: HY20 funds management platform
Lendlease HY20 Financial Results / 55 HY20 funds management platform Major fund 2 3 4 5 6 ARIF7 3 PPPL8 LLGCREIT9 LLRP10 For personal use only APPFR APPFC APPFI LLITST LLOITST (Jem) summary1 Total assets $b 4.9 5.1 1.1 4.7 2.8 1.8 1.5 1.5 1.1 Gearing % 14.8 5.5 8.3 13.2 18.2 40.2 35.7 36.4 - Co-inve
Slide 89: Investments: co-investments
Lendlease HY20 Financial Results / 56 Investments1 Australia co-investments Australian Prime Property Fund Commercial HY20 Lendlease interest 8.2% FY19 ($m) 369 HY20 ($m) 382 For personal use only Lendlease International Towers Sydney Trust 3.9% 238 156 Australian Prime Property Fund Industrial 10.5
Slide 90: Assets Under Management (AUM) by region
Lendlease HY20 Financial Results / 57 Assets Under Retail and Office HY20 GLA2 For personal use only sqm '000 FY19 ($b) HY20 ($b) Management Australia 774.8 7.5 6.9 (AUM)1 by Asia 493.1 7.2 8.8 Europe 141.7 0.7 0.7 region Total 1,409.6 15.4 16.4 HY20 US Military Housing Avg portfolio life AUM ($b) H
Slide 91: Retirement summary
Lendlease HY20 Financial Results / 58 Value drivers1 HY19 HY20 Investment ($m) Retirement Long term growth rate % 3.5 3.5 For personal use only summary Discount rate Average length of stay % years 12.3 11 12.3 11 1,427 Number of established units no. 12,782 12,825 1,397 Units resold no. 402 458 Deve
Slide 92: Important notice
Lendlease HY20 Financial Results / 59 This document (including the appendix) has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) (Lendlease) in good Important faith. Neither Lendlease (including any of its controlled entities), nor Lendlease Trust (together referred to