Lendlease Group · ASX:LLC
Lendlease — Merger or Acquisition (December 2010)
18 slides from Lendlease's merger presentation, Dec 21, 2010
Slide 1: Lend Lease to acquire leading Australian engineering and construction businesses
ASX Announcement Lend Lease to acquire leading Australian engineering and For personal use only construction businesses 21 December 2010 Lend Lease today announced that it has entered into an agreement with Bilfinger Berger SE to acquire 100% of Valemus Australia (Valemus), the parent company of Abi
Slide 2: CEO comments and contacts
Lend Lease Group Chief Executive Officer and Managing Director, Steve McCann, said the acquisition of Valemus provides Lend Lease with an excellent strategic platform in the engineering and construction market in Australia. For personal use only “Valemus has a highly successful and experienced manag
Slide 3: Acquisition of Valemus
Lend Lease Corporation Limited ABN 32 000 226 228 and For personal use only Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595 Acquisition of Valemus December 2010
Slide 4: Disclaimer
Disclaimer For personal use only This document is general background information about the Group’s acquisition of Valemus current at the date 21 December 2010. It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or pote
Slide 5: Overview of the proposed transaction
Overview of the proposed transaction For personal use only Transaction Lend Lease will acquire Valemus for a purchase price of $960m1 and purchase The transaction is subject to a number of regulatory and other conditions precedent that price are expected to be satisfied in the first quarter of 2
Slide 6: Overview of the engineering & construction market
Overview of the engineering & construction market For personal use only Strong Growth1 Large Market Scale Benefits Market has grown at a ~15% The E&C market is ~50% of Companies in this sector need CAGR since 2001 the total Australian construction to have scale due to Since 2001, E&C has bee
Slide 7: Acquisition consistent with focus on strategic trends
Acquisition consistent with focus on strategic trends For personal use only Leading urban renewal projects in Australia, UK and Singapore Urban Regeneration Long term pipeline No. 1 senior living platform in Australia Ageing Population 70 retirement villages and 33 aged care facilities Publi
Slide 8: Strategic rationale for the transaction
Strategic rationale for the transaction For personal use only Large platform in the growing E&C sector with significant scale benefits Market position Presence in road, rail, social infrastructure, commercial and industrial building sectors providing further diversification to Lend Lease Gover
Slide 9: Integration and reporting
Integration and reporting For personal use only Peter Brecht to continue as CEO and join the Lend Lease Executive Management Management Team team Darrell Hendry remains as CFO Key Divisional Heads to maintain existing positions Reporting line Peter Brecht to report into Scott Charlton, Group
Slide 10: Overview of the Valemus business
Overview of the Valemus business For personal use only Established 1957 Established 1926 Established 2005 One of Australia’s largest multi- Operates across the spectrum Provides engineering and disciplinary engineering of engineering construction and specialist asset management construct
Slide 11: The Valemus management team
The Valemus management team For personal use only Group CEO Peter Brecht Group CFO Darrell Hendry Managing Director Managing Director Managing Director (from 1/1/2011) David Jurd Mark Elliott Ian Luck Finance Director Finance Director Finance Director David Walker Alan Toombes Guy Freeland 9
Slide 12: Funding the acquisition
Funding the acquisition For personal use only Funding Sources Net Liquidity Outflow Lend Lease Lend Lease Net $960m $735m Cash and Debt Cash Acquired Purchase Price Cash Impact Facility in Business1 Adjustments 2 after Acquisition $80m ($276m) $225m $735m ($539m) Equity Price Lend Lease New Debt Cas
Slide 13: Pro forma balance sheet
Pro forma balance sheet For personal use only Valemus Lend Lease Lend Lease September Transaction Pro Forma $m FY2010 20101 Adjustments FY2010 Cash 1,636 539 (815) 1,360 Tangible assets 9,041 954 9,995 Intangible assets 694 289 382 1,365 Total assets 11,371 1,782 (433) 12,720 3 Borrowings & finance
Slide 14: Pro forma financial performance of Valemus CY2009
Pro forma financial performance of Valemus CY2009 For personal use only Valemus $m CY2009 Revenue1 4,766 EBITDA from Operating Businesses2 192 EBITDA Margin (%) 4.0% EBIT 152 EBIT Margin (%) 3.2% Net Profit after Tax3 117 1. Valemus equity accounts for its construction joint ventures in its statutor
Slide 15: Effect of the transaction on segment EBITDA
Effect of the transaction on segment EBITDA For personal use only Lend Lease FY2010 EBITDA Pro forma combined EBITDA1 1. Based on Valemus CY2009 Pro forma EBITDA from slide 12 and Lend Lease’s FY2010 EBITDA 13
Slide 16: Effect of the transaction on geographic EBITDA
Effect of the transaction on geographic EBITDA For personal use only Lend Lease FY2010 EBITDA Pro forma combined EBITDA1 1. Based on Valemus CY2009 Pro forma EBITDA from slide 12 and Lend Lease’s FY2010 EBITDA 14
Slide 17: Summary and conclusion
Summary and conclusion For personal use only In line with Lend Lease’s strategy to position itself around key Strategic rationale growth trends including Infrastructure and Public Private Partnerships The acquisition delivers scale and broadens Lend Lease’s Scale construction services capability
Slide 18: Acquisition of Valemus
For personal use only Acquisition of Valemus December 2010
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