Lendlease Group · ASX:LLC
Lendlease — Merrill Lynch Australia Investment Conference 2007
42 slides from Lendlease's conference presentation, Sep 11, 2007
Slide 1: Stock Exchange Announcement: Presentation at Merrill Lynch Conference
For personal use only 11 September 2007 The Manager The Manager Companies Section Companies Section Australian Stock Exchange Limited New Zealand Stock Exchange Limited Pages: Forty-two (42) pages Dear Sir Stock Exchange Announcement Presentation by Group Finance Director at Merrill Lynch Australia
Slide 2: Merrill Lynch Australia Investment Conference, New York, September 2007
For personal use only Merrill Lynch Australia Investment Conference New York September 2007
Slide 3: Who is Lend Lease?
Who is Lend Lease? For personal use only US 31% NPAT Europe 36% NPAT Asia Pacific 33% NPAT Funds/ Financing Investment Development Asset Asset Construction Management Management Servicing 2
Slide 4: Fast Facts
Fast Facts For personal use only Market capitalisation A$7.7b Employees 10,817 Revenue A$14.3b NPAT A$413.7m ROE 15.7% Gearing 15.6% Recurring Income 23% 3
Slide 5: Integrated Property Model
Integrated Property Model For personal use only Development – Retail / Communities / Privatisation Product + “Free” cashflow + Intellectual property Source of Underpins design & delivery capital credit rating capability Underpins credit rating Investment Construction – Management Bovis Lend Lease De
Slide 6: Development – Our Business Model
Development – Our Business Model For personal use only Retail Communities Privatisation Scale project Scale project Deep market Synergies possible Synergies possible Synergies possible Ability to assemble / Ability to assemble / Early mover advantage control site control site Con
Slide 7: Development – Global Scale
Development – Global Scale For personal use only Region Retail Communities Privatisation No. of Value Under Backlog Backlog Total Assets Value Under Centres Development No. Sales Value Development UK 7 A$3.2b 14,720 A$13.0b 22 A$0.9b America 1 - 15,881 A$2.3b 16 A$6.5b (1) (42,400 homes) Australia 1
Slide 8: Lend Lease Communities – UK
Lend Lease Communities – UK For personal use only Project: Stratford City Location: 5 miles from Central London Proposed Phase 1 – Athletes Village – development: London 2012 Olympics 4,200 residential lots Substantial affordable housing component Phase 2 – rights post 2012 Draw down land
Slide 9: Lend Lease Communities – Australia
Lend Lease Communities – Australia For personal use only Project: Caroline Springs Location 22kms west of Melbourne, Victoria Residential lots: 7,480 Non-residential: 132.5 hectare town centre 120 hectares of open space Land control: Via land management agreement Completion: 2013 Lend Lease owne
Slide 10: Lend Lease Communities – US
Lend Lease Communities – US For personal use only Project: Hickam Community Housing Phases I & II Location: Hawaii Units under Phase I – 1,356 management: Phase II – 1,118 Concession term: To 2055 Services provided by Development management Actus Lend Lease: Design & construction Asset managem
Slide 11: Lend Lease Retail – Australia
Lend Lease Retail – Australia For personal use only Centre: Mid City Centre (Sydney CBD) Location: New South Wales Area: Proposed Commercial 34,000m2 NLA Proposed Retail 9,000m2 NLA Redevelopment: September 2007 − 2010 A$750m Owners: APPF Retail & Commercial Funds 50% Fortius Funds Manag
Slide 12: Global Construction Platform with Leadership Positions
Global Construction Platform with Leadership Positions For personal use only Region Headcount Backlog Key Sectors GPM FY07 Americas 3,587 A$297m Multi-family (37%) Healthcare Education Europe 4,080 A$371m Commercial (47%) Retail Healthcare Government / Civic Project management servic
Slide 13: Strong Pipeline
Strong Pipeline For personal use only ` Region Value A$m* FY2006 FY2007 FY2008 FY2009 Rouse Hill Town Centre Asia Pacific 415 Brisbane Airport Asia Pacific 287 Australian Taxation Office, Canberra Asia Pacific 245 Abbott Laboratories Asia Pacific 305 Mets Stadium (JV) Americas 350 St David’s 2, Card
Slide 14: Bovis Lend Lease – Americas
Bovis Lend Lease – Americas For personal use only Project: Citi Field, New York Mets Stadium Location: Queens, New York Construction value: US$600m Area: 1.4 million square feet Architect: HOK Sports Forecast completion: 2009 Services provided by Lend Lease: Project management 13
Slide 15: Bovis Lend Lease – UK
Bovis Lend Lease – UK For personal use only Project: Unilever House Location: London Client: Unilever plc (Bovis Lend Lease / Stanhope JV) Construction value: £98m Completion: March 2007 Services provided by Construction management Lend Lease: Shell & core Category B fit-out 14
Slide 16: Investment Management – Our Products
Investment Management – Our Products For personal use only Region Type of Funds FUM (1) Pipeline / Investment Capacity Australia Core, Core Plus, Enhanced, A$4.9b A$1.3b development pipeline in Value Add APPF alone Asia Core Plus, Value Add A$1.2b A$2.4b of investment capacity in ARIF UK Core, Value
Slide 17: Investment Management – Asia Pacific
Investment Management – Asia Pacific For personal use only Fund: Asian Retail Investment Fund (ARIF) Location: Singapore Equity raising: First close December 2006 – $375m Second close May 2007 – S$325m Target gearing: 60-80% Capacity to invest in over S$3b of projects Lend Lease co-investmen
Slide 18: Longer Term Earnings Visibility
Longer Term Earnings Visibility For personal use only Retail Development Secured Potential Privatisation – Actus Development & Construction Facilities Management & Redevelopment Australian Communities Long term pipeline – zoned / unzoned US Communities Lowry Range / Horizon City / Potential acquisit
Slide 19: Disciplined Capital Management Model
Disciplined Capital Management Model For personal use only EPS growth Targeting 10% p.a. average growth over 5-year period FY07 Performance EPS growth 26% 3 Debt ratios Dividend policy Dividend payout ratio 69% 3 Gearing (Debt to TTA) 60-80% MANAGEMENT OBJECTIVES Gearing (1) 15.6% Target 30-
Slide 20: Summary – Year to June 2007
Summary – Year to June 2007 For personal use only Statutory Profit A$497.5m 20% Net Operating Profit (1) A$445.9m 26% Earnings Per Share (2) 111.4¢ 26% Full Year Dividend (3) 77¢ 26% Notes: (1) Net Operating Profit after tax excluding property revaluations, including interest from the ATO of A$32.2m
Slide 21: Solid EPS & Dividend Growth
Solid EPS & Dividend Growth For personal use only EPS (1) Dividend cents cents 77 111.4 70 61 120 57 60 100 88.7 50 44 42 71.6 31 80 61.8 70.5 29 52.5 40 30 46.8 60 28.1 26 30 40 26.5 36.1 20 20 35 28 30 20 43.5 41.9 40.9 10 26.0 25.7 18 10 0 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 1st H
Slide 22: Strategy / Outlook
Strategy / Outlook For personal use only Business Unit strategy Reposition Bovis Lend Lease UK Consistent application of risk management processes Focus on appropriate reward for risk Progress Retail & Communities Move pipeline opportunities into delivery Continue to grow pipeline Stra
Slide 23: Outlook
Outlook For personal use only Earnings outlook unchanged − underpinned by existing portfolio and pipeline over 5 years + Economic and market conditions remaining generally favourable Strong development pipeline with opportunities out 10 years − good earnings visibility Capital recycling will
Slide 24: Q&A
For personal use only Q&A
Slide 25: Appendices
For personal use only Appendices
Slide 26: Organisation Structure
Organisation Structure For personal use only Corporate Centre Greg Clarke Communications Chief Executive Officer Group Finance Human Resources Incident & Injury Free Executive Office Information Technology Legal Risk Strategy/M&A Ross Taylor Steve McCann Chief Operating Officer Sustainability CEO –
Slide 27: Group Profit After Tax – Year to June 2007
Group Profit After Tax – Year to June 2007 For personal use only Statutory 51.6 497.5 Profit 500 32.2 450 133.3 (12.7) 413.7 Net Operating Profit (1) 400 15.9 (77.0) 354.2 A$m 350 300 250 200 06 s I t y 07 st 0 ti ie PF en sur 0 r e o ns 007 2 m a 2 i 2 ne un n & ge re ne int e uat fit u m io a T u
Slide 28: Strong Opportunities & Competitive Positioning
Strong Opportunities & Competitive Positioning For personal use only Business Backlog Competitive Positioning Retail & Communities Retail Development Pipeline – A$5.3b Integrated capability in retail Communities – 115,000 lots under 15-year backlog in Australia management (A$33b sales value) Growing
Slide 29: Year Historic Snapshot
10 Year Historic Snapshot For personal use only 2007 Selected for £1.5b regeneration project at Elephant & Castle, 2003 Sale of Housing & Community Investing / CapMark Services London Write-down of US$300m on US Real Estate Investments Selected to develop £2b Olympic Village at Stratford City, 2001
Slide 30: Existing Platform – Group Synergies
Existing Platform – Group Synergies For personal use only Region Bovis Lend Lease / Backlog Investment Management GPM (next 5 years) Potential FUM (next 5 years) UK A$100−200m Circa A$1−2b Retail Funds / Residential & Other Funds America A$10m A$700m Australia A$100m A$200m Singapore A$40m A$900m To
Slide 31: Strong Balance Sheet
Strong Balance Sheet For personal use only S&P / Moody’s credit rating BBB- / Baa3 (unchanged) Weighted average debt maturity 12.0 years Fixed / floating debt 84% / 16% Interest cover 7.9x Gross Debt to Total Tangible Assets 15.6% Gearing expected to reach 30% over a 3-year period as we invest in ou
Slide 32: Sample Projects
For personal use only Sample Projects
Slide 33: Lend Lease Communities – Australia: Springfield Lakes
Lend Lease Communities – Australia Delfin Lend Lease For personal use only Project: Springfield Lakes Location: 28kms south west of Brisbane, Queensland Residential lots: 10,000+ Non-residential: 100+ hectares of open space State school / college Neighbourhood shopping centre Commercial & re
Slide 34: Lend Lease Development – Australia: Victoria Harbour
Lend Lease Development – Australia For personal use only Project: Victoria Harbour Location: Melbourne Docklands Area: 30 hectares / 2.5 km water frontage Development Over 2,000 apartments rights: Over 200,000m2 commercial space Over 40,000m2 retail + community, education & entertainment uses
Slide 35: Bovis Lend Lease – Asia Pacific
Bovis Lend Lease – Asia Pacific For personal use only Project: ANZ@Docklands Location: Melbourne, Victoria Project value: A$377m Area: 83,550m2 NLA Architect: Lend Lease design & Hassell Completed: Scheduled 2009 Services provided Project management by Lend Lease: Design & Construction 34
Slide 36: Lend Lease Communities – US: Privatized Army Lodging
Lend Lease Communities – US Actus Lend Lease – Privatized Army Lodging (PAL) For personal use only Day one Holidex Reservation System implemented – IT conducts on-site system conversions Within 3 months New soft goods package for all existing PAL rooms Within 6 months All life-safety improved
Slide 37: Lend Lease Communities – US: Lowry Range
Lend Lease Communities – US For personal use only Project: Lowry Range Location: Denver, Colorado End value: US$1.6b Area: Approx. 4,000 acres 13,000 homes 260 acres of commercial land 750 acres of open space Timeline: Development commencing July 2009 20-year project 36
Slide 38: Lend Lease Communities – UK: Potato Wharf
Lend Lease Communities – UK Crosby Lend Lease For personal use only Project: Potato Wharf Location: Manchester Residential units: 1,100 (proposed) Non-residential: > 160,000 sq ft commercial / retail 150-room hotel 800 car spaces Estimated completion date: 2012 Lend Lease interest: Developer L
Slide 39: Investment Management – UK: Touchwood Shopping Centre
Investment Management – UK For personal use only Asset: Touchwood Shopping Centre Location: Solihull, UK Value: £315.5m Lend Lease ownership interest: Via Lend Lease Retail Partnership Services provided by Development management Lend Lease: Project management & construction Asset management Aw
Slide 40: Investment Management – UK: Bluewater
Investment Management – UK For personal use only Asset: Bluewater Location: Kent Area: 148,600m2 Value: £2.02b Retail Events venue (5,200m2) development: Estimated completion 2008 Services Asset management provided by Development management Lend Lease: Project and construction management o
Slide 41: Privatisation – UK: Queen's Hospital
Privatisation – UK For personal use only Project: Queen’s Hospital Location: Romford, Essex Construction value: £211m Area: 96,500m2 / 939 beds Completed: October 2006 Services provided by Project management Lend Lease: Construction management Asset management Facilities management Concessio
Slide 42: Disclaimer
Disclaimer For personal use only Important information This presentation has been prepared in good faith, but no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentati
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