Lendlease Group · ASX:LLC
Lendlease — FY2020 Earnings Presentation
93 slides from Lendlease's earnings presentation, Aug 17, 2020
Slide 1: Lendlease Group 2020 Full Year Results Announcement, Presentation and Appendix
17 August 2020 For personal use only Lendlease Group 2020 Full Year Results Announcement, Presentation and Appendix Lendlease Group today announced its results for the year ended 30 June 2020. Attached is the FY20 Results Announcement, Presentation and Appendix. A summary of Lendlease's Major Urbani
Slide 2: Strategic initiatives progressed despite COVID-19 impacts
17 19 August 2019 22 August 2020 2018 Strategic initiatives progressed despite COVID-19 impacts For personal use only For the full year ended 30 June 20201: • Statutory Loss after Tax of $310 million • Full year distributions of 33.3 cents per stapled security: o Interim distribution 30 cents; o Fin
Slide 3: For personal use only
17 19 August 2019 22 August 2020 2018 equity and arranging additional debt facilities to enable the Group to manage through a potential sustained downturn and to take advantage of development and investment opportunities as they For personal use only emerge. “Notwithstanding the challenging environm
Slide 4: For personal use only
17 19 August 2019 22 August 2020 2018 A new partnership was formed with PSP Investments, one of Canada’s largest pension funds to develop the $4 billion Milano Santa Giulia project. The 58,000 sqm Victoria Cross over station For personal use only development in Sydney will be delivered in partnershi
Slide 5: Financials
17 19 August 2019 22 August 2020 2018 Lendlease has previously disclosed a cost estimate to exit the Engineering and Services businesses of $450 - $550 million4 on a pre-tax basis. Lendlease now expects these costs to be For personal use only approximately $550 million pre tax, with $525 million pre
Slide 6: Outlook
17 19 August 2019 22 August 2020 2018 The completion of the Engineering sale will result in a cash flow impact comprising a transfer of the working capital cash balance to the buyer, less sale proceeds in FY21. As at 30 June 2020 the For personal use only working capital balance was approximately $4
Slide 7: Contacts and 2020 key dates for investors
17 19 August 2019 22 August 2020 2018 FOR FURTHER INFORMATION, PLEASE CONTACT: For personal use only Investors: Media: Justin McCarthy Stephen Ellaway Mob: +61 422 800 321 Mob: +61 417 851 287 2020 Key Dates for Investors Securities quoted ex-distribution on the Australian Securities Exchange 21 Aug
Slide 8: 2020 Full Year Results
Singapore: Paya Lebar Quarter 2020 For personal use only Full Year DRAFT – SUBJECT TO VERIFICATION Results 17 August 2020
Slide 9: Acknowledgement of Country
For personal use only Lendlease FY20 Financial Results 2 Acknowledgement of Country As a developer, builder and manager of assets on land across Australia, we pay our respects to the traditional owners, especially their elders past and present, and value their custodianship of these lands.
Slide 10: Group Performance
For personal use only Lendlease FY20 Financial Results 3 Group Performance Steve McCann Group Chief Executive Officer and Managing Director Chicago: Cooper at Southbank
Slide 11: Our approach
Lendlease FY20 Financial Results 4 Our For personal use only approach End to end capabilities across all aspects of real estate – from concept planning, to design and delivery, through to funding and investment management – generate superior economic, social and environmental outcomes.
Slide 12: 2020 significantly impacted by onset of COVID-19
Lendlease FY20 Financial Results 5 2020 significantly impacted by onset of COVID-19 COVID-19 • Significant deterioration in operating conditions in the second half as a result of the pandemic For personal use only • Financial impact to Core business: − Solid H1 FY20 with a net profit after tax of $3
Slide 13: Value creation: non financial focus areas
Lendlease FY20 Financial Results 6 Value creation: non financial focus areas For personal use only Health and Safety Our People Our Customers Sustainability Health and Safety is our number one Our people are the greatest Designing and delivering innovative, We pride ourselves on reaching priority. W
Slide 14: Securityholder returns and FY20 result
Lendlease FY20 Financial Results 7 Securityholder returns1 FY20 • Group Statutory Loss after Tax of $310m: For personal use only result − Core Profit after Tax of $96m, earnings per stapled security of 15.9 cents, Return on Equity of 1.5%2 − Non core Loss after Tax of $406m, including $368m after ta
Slide 15: Progress on exit of Non core segment
Lendlease FY20 Financial Results 8 Sale of Engineering business to Acciona Progress on • Sale of Engineering business to Acciona anticipated to complete shortly, subject to satisfaction of the final conditions: For personal use only exit of − Third party consents being secured − Sale price of $160m,
Slide 16: Strategic initiatives progressed, Development pipeline $113b
Lendlease FY20 Financial Results 9 Strategic initiatives progressed, Development pipeline $113b For personal use only Executing on our strategy • Investment partner initiatives: − New investment partnerships extending to $7b1 in development value: o Milano Santa Giulia: entire precinct o Victoria Cr
Slide 17: Financial Performance
For personal use only Lendlease FY20 Financial Results 10 Financial Performance Tarun Gupta Group Chief Financial Officer Sydney: Sydney Place Artist’s impression
Slide 18: Financial performance
Lendlease FY20 Financial Results 11 Financial performance For personal use only $m FY19 FY20 Change Core Development 793 322 (59%) • PLQ completion; Victoria Cross over station development and MSG Development JVs; apartment settlements Construction 211 101 (52%) • EBITDA margin 1.3% Investments 489
Slide 19: Cash flow movements FY20
Lendlease FY20 Financial Results 12 Cash flow movements FY20 ($m) Cash flow Strong underlying operating cash flows: For personal use only • Development receipts, including cash realisation from profit 762 (184) Disposal Group cash recognised in previous periods (810) • $588m inflow from PLLACes1 tra
Slide 20: Financial position and strength
Lendlease FY20 Financial Results 13 Financial strength Invested capital: Development Financial Capital structure For personal use only position • Gearing 5.7%1,2, down from 9.9% at FY19; net debt $0.8b2, down from $1.4b at FY19: $4.8b Unchanged4 − Strong underlying operating cash flow offset by unde
Slide 21: Portfolio Management Framework
Lendlease FY20 Financial Results 14 Portfolio Management Framework For personal use only EBITDA mix Invested capital By segment By region 25% 19% 44% 42% $563m¹ $8.5b² $8.1b² 57% 56% 22% 18% 17% Development Construction Investments Development Investments Australia Asia Europe Americas (40 - 50%) (1
Slide 22: Core financial returns
Lendlease FY20 Financial Results 15 Core financial returns For personal use only • Average Return on Equity FY16 – FY20: 10.8%1 Target 10 – 14% Development segment ($m) Construction segment ($m) Investments segment ($m) Average ROIC: FY16 – FY20 Average EBITDA margin: FY16 – FY20 Average ROIC: FY16
Slide 23: Operational Update
For personal use only Lendlease FY20 Financial Results 16 Operational Update Steve McCann Group Chief Executive Officer and Managing Director London: International Quarter London Artist’s impression
Slide 24: Growth in platform across target gateway cities
Lendlease FY20 Financial Results 17 Growth in For personal use only platform across target gateway cities Development Construction Funds Under Pipeline ($b) backlog revenue ($b) Management ($b) Investments ($b) 113 36 4.0 35 3.7 15 16 15 16 3.4 14 3.3 30 3.0 71 76 26 24 49 49 FY16 FY20 FY16 FY20 FY1
Slide 25: Development performance: apartments
Lendlease FY20 Financial Results 18 Performance Apartment settlements and completions Development • Significant COVID-19 impact For sale For rent Target 1,000 – For personal use only 2,000 units p.a. − H1 EBITDA $272m and H2 $50m 2,533 Apartments 2,236 2,075 • 2,236 residential settlements and compl
Slide 26: Development performance: commercial
Lendlease FY20 Financial Results 19 Commercial Commercial building commencements Development Performance By sqm ‘000 Target 2 – 3 commencements p.a. For personal use only 8 • Partnership formed to develop the Milano Santa Giulia project: 5 4 3 − $41 billion major urbanisation project 0 288 − First t
Slide 27: Development performance: Communities
Lendlease FY20 Financial Results 20 Communities Communities settlements Development Performance and outlook 1H 2H Target 3,000 – 4,000 lots p.a. For personal use only Communities 3,912 • 1,898 lots settled, impacted by lower demand, tighter credit markets and COVID-19 3,402 3,060 • 1,347 lot sales,
Slide 28: Construction performance and outlook
Lendlease FY20 Financial Results 21 Performance and outlook1 Backlog revenue ($b) Construction • Global EBITDA margin 1.3%, down from 2.2% For personal use only • Revenue of $7.6b, down 21% 7.5 (7.6) • Significant COVID-19 impact 15.6 (1.6) − Solid H1 with EBITDA of $101m 13.9 − Break even result fo
Slide 29: Investments operating earnings
Lendlease FY20 Financial Results 22 Operating earnings Operating EBITDA ($m) Investments Performance and outlook1 1H 2H For personal use only • EBITDA of $198m, up from $144m 198 − Modest growth in base fees in line with higher average funds under management 144 − Significant performance fee post co
Slide 30: Investments ownership earnings
Lendlease FY20 Financial Results 23 Ownership earnings Ownership EBITDA ($m) Investments Performance and outlook1 1H 2H For personal use only • EBITDA loss of $58m, down from $345m: 536 − Significant reduction in valuations due to the impacts of COVID-19 379 350 345 o $188m in devaluations across th
Slide 31: Outlook
For personal use only Lendlease FY20 Financial Results 24 Outlook Steve McCann Group Chief Executive Officer and Managing Director Boston: Clippership Wharf
Slide 32: Positioned for long term growth
Lendlease FY20 Financial Results 25 Positioned for long term growth Outlook • Group well placed to navigate the uncertainty of COVID-19: For personal use only − Near term impact of pandemic expected to continue − Strong financial position − Capacity to accelerate delivery of global development pipel
Slide 33: Questions
For personal use only Questions Sydney: Daramu House, Barangaroo South
Slide 34: 2020 Full Year Results Appendix
Singapore: Paya Lebar Quarter 2020 For personal use only Full Year Results Appendix 17 August 2020
Slide 35: Overview
For personal use only Overview Sydney: One Sydney Harbour, Barangaroo South Artist's impression Image subject to change and further design development and planning approval
Slide 36: Our operating segments
Lendlease FY20 Financial Results 3 Our For personal use only operating segments London: International Quarter London Artist’s impression Image subject to change and further design development and planning approval Our business model is how Development Construction Investments we generate earnings De
Slide 37: Global presence, local knowledge
Lendlease FY20 Financial Results 4 Global presence, For personal use only London • Thamesmead Waterfront • Euston Station • Silvertown Quays local knowledge1 • International Quarter London • Elephant Park • High Road West Chicago • Deptford Landings2 • Lakeshore East • Southbank Milan Boston • Milan
Slide 38: Value creation
Lendlease FY20 Financial Results 5 Value For personal use only creation Sydney: Barangaroo South We measure our Health and Safety Financial Our Customers Our People Sustainability success by the value we create in these Everyone has the right to go A strong balance sheet and Our customers love the O
Slide 39: Financial: Portfolio Management Framework
Lendlease FY20 Financial Results 6 Financial We focus on Return on Equity Portfolio Management and Earnings per Security For personal use only Framework1 as measures of return for Maximising long term securityholders. securityholder value 1. Capital allocation Focused on gateway cities Australia 50-
Slide 40: Sustainability
Lendlease FY20 Financial Results 7 Sustainability For personal use only Sustainability UN Global Compact Provides voluntary, consistent climate-related Independent provider of research-driven insights Voluntary initiative based on CEO financial risk disclosures for use by companies and tools for ins
Slide 41: Group
For personal use only Group London: Deptford Landings (formerly The Timberyard Deptford) Artist’s impression Image subject to change and further design development and planning approval
Slide 42: Income Statement
Lendlease FY20 Financial Results 9 $m FY191,2 FY20 Income Revenue from contracts with customers 14,889 11,671 For personal use only Statement Other revenue Cost of sales 152 (13,929) 163 (11,361) Gross profit 1,112 473 Share of profit of equity accounted investments 338 (13) Other income 293 352 Oth
Slide 43: Statement of Financial Position
Lendlease FY20 Financial Results 10 FY19 FY20 FY19 FY20 Statement of $m Current Assets $m Current Liabilities For personal use only Cash and cash equivalents 1,290 1,111 Trade and other payables 5,724 4,496 Financial Loans and receivables Inventories 2,050 2,238 1,667 2,256 Provisions Borrowings and
Slide 44: Statement of Cash Flows
Lendlease FY20 Financial Results 11 FY19 FY20 Statement of $m Cash Flows from Operating Activities For personal use only Cash receipts in the course of operations 17,026 13,488 Cash Flows1 Cash payments in the course of operations Interest received (16,902) 13 (13,313) 16 Interest paid in relation t
Slide 45: Underlying operating cash flow and cash conversion
Lendlease FY20 Financial Results 12 Cash conversion (FY16 – FY20) ($m) Underlying • Underlying operating cash flow has been included to Total conversion against EBITDA of 115% For personal use only operating cash provide a more accurate cash comparator against Group EBITDA • This represents 115% of
Slide 46: FY20 underlying operating cash flow
Lendlease FY20 Financial Results 13 In FY20 Lendlease delivered underlying operating cash flow of $762m Overview FY20 $m Statutory Adjustments Underlying • Underlying operating cash flow is For personal use only underlying Cash Flows from Operating Activities Cash receipts in the course of operation
Slide 47: Segment financial metrics
Lendlease FY20 Financial Results 14 Operating Profit after Tax ($m) Operating EBITDA ($m) Segment FY19 FY20 FY19 FY20 For personal use only financial 793 metrics 554 489 368 322 233 211 141 140 104 101 42 Development Investments Construction Development Investments Construction ROIC1 (Development an
Slide 48: By segment
Lendlease FY20 Financial Results 15 By segment Segment Revenue ($m) EBITDA ($m) Profit after Tax ($m) Invested capital ($b) For personal use only financial Development FY19 3,355 FY20 2,344 FY19 793 FY20 322 FY19 554 FY20 233 FY19 4.8 FY20 4.8 metrics Investments Construction 348 9,680 390 7,627 489
Slide 49: EBITDA by segment and region
Lendlease FY20 Financial Results 16 Operating EBITDA by segment ($m) Revenue / $m Revenue FY19 FY20 EBITDA FY19 FY20 FY19 FY20 For personal use only EBITDA by Development Australia Asia 2,712 18 1,198 13 556 121 174 34 793 segment Europe Americas 544 81 969 164 37 79 116 (2) 322 489 Total Developmen
Slide 50: EBITDA by segment, local currency
Lendlease FY20 Financial Results 17 Operating EBITDA, local currency (m) Revenue / Asia SGDm¹ Revenue EBITDA FY19 FY20 For personal use only EBITDA by Development FY19 17 FY20 12 FY19 117 FY20 32 117 165 segment, local Construction Investments 390 61 237 125 (1) 49 (10) 62 32 49 62 84 currency Total
Slide 51: Exchange rates and FX sensitivity
Lendlease FY20 Financial Results 18 Income Statement Statement of Financial Position Exchange Local Foreign FY19 1 FY20 2 Local Foreign FY193 FY204 For personal use only rates AUD AUD USD GBP 0.71 0.55 0.67 0.53 AUD AUD USD GBP 0.70 0.55 0.69 0.56 AUD EUR 0.63 0.61 AUD EUR 0.62 0.61 AUD SGD 0.97 0.9
Slide 52: FY20 regional EBITDA to PAT reconciliation
Lendlease FY20 Financial Results 19 $m EBITDA Net interest D&A1 PBT Tax PAT FY20 regional Australia For personal use only Development 174 (3) (7) 164 (46) 118 EBITDA to PAT Construction 97 - (8) 89 (27) 62 Investments 35 - (5) 30 - 30 reconciliation Total Australia Asia 306 (3) (20) 283 (73) 210 Dev
Slide 53: Debt metrics
Lendlease FY20 Financial Results 20 FY19 FY20 Debt metrics Net debt1 $m 1,425 833 For personal use only Borrowings to total equity plus borrowings % 29.9 25.7 1 Net debt to total tangible assets, less cash % 9.9 5.7 Interest cover2 times 8.8 2.8 Average cost of debt % 4.0 3.4 Average debt maturity y
Slide 54: Debt facilities and maturity profile
Lendlease FY20 Financial Results 21 Debt facilities1 ($m) Debt facilities Drawn Facility For personal use only and maturity 1,800 profile 800 714 725 960 536 535 535 575 575 311 311 134 179 79 79 - - - 29 Euro CP UK Bond Syndicated Syndicated Club Asia Loan CNY871 US$ Reg. S S$ Reg. S A$ medium prog
Slide 55: Key dates for investors
Lendlease FY20 Financial Results 22 Key dates for FY20 results released to market / final distribution declared Date 17 August 2020 For personal use only investors Securities quoted ex distribution on the Australian Securities Exchange Final distribution record date 21 August 2020 24 August 2020 Str
Slide 56: Development Segment
For personal use only Development Segment San Francisco Bay Area project Artist's impression Image subject to change and further design development and planning approval
Slide 57: Earnings drivers - Development
Lendlease FY20 Financial Results 24 Earnings drivers - Development For personal use only ROIC target 10-13%; Invested capital $4.8b; Pipeline1 $113.0b Urbanisation Communities Telco Infrastructure Military Infrastructure Development Housing 21 major projects in 17 projects 9 gateway cities Business
Slide 58: Development FY20 overview
Lendlease FY20 Financial Results 25 Overview Performance FY19 FY20 Development • Development of inner city mixed use developments, apartments, Core business EBITDA mix % 53 57 For personal use only communities, retirement, retail, commercial assets, and social and FY20 • economic infrastructure Fina
Slide 59: Development earnings and pipeline
Lendlease FY20 Financial Results 26 EBITDA by region ($m) Pipeline1 by region ($b) Development FY19 FY20 FY19 FY20 For personal use only earnings / 793 113.0 pipeline 556 76.1 50.1 322 29.3 28.9 34.1 29.8 174 121 116 79 7.7 34 37 5.0 4.2 (2) Australia Asia Europe Americas Total Australia Asia Europe
Slide 60: Residential development settlements
Lendlease FY20 Financial Results 27 Residential Communities settlements FY19 FY20 FY20 apartment settlements Units $m For personal use only development QLD Lots 530 $m 117 Lots 549 $m 123 Apartments for sale Australia NSW 449 109 255 122 Melbourne Quarter - East Tower 302 183 Victoria Harbour - Coll
Slide 61: Non residential development commencements and completions
Lendlease FY20 Financial Results 28 Non residential City Project Commercial commencements Building Sector Capital model End value1 ($b) sqm ‘000 For personal use only development Sydney Victoria Cross over station development Victoria Cross over station development Office Joint venture 1.2 58 commen
Slide 62: Movement in presales - apartments
Lendlease FY20 Financial Results 29 Movement in presales – Apartments for sale Residential By units By value ($m) For personal use only apartments1 Australia Asia Europe Americas Australia 1,995 Asia (1,495) Europe Americas 733 (1,366) 2,223 38 2,449 112 1,911 159 (3) 1,587 343 1,013 150 152 114 732
Slide 63: Movement in presales - communities
Lendlease FY20 Financial Results 30 Movement in presales1 Residential By lots By value ($m) communities – For personal use only 1,347 (1,898) 370 (526) Australia 2,276 625 1,725 469 FY19 Sales Settlements FY20 FY19 Sales Settlements FY20 1. Includes 100% of revenue from joint venture projects.
Slide 64: Record secured pipeline of $113.0b
Lendlease FY20 Financial Results 31 Record secured pipeline1 of $113.0b controlled by invested capital of $4.8b Pipeline Apartments Target annual For personal use only turnover2 provides long 1,418 presold units and 1,624 units for rent across 13 major apartment buildings3 in delivery, expected deli
Slide 65: Major urbanisation project summary
Lendlease FY20 Financial Results 32 Major Region Project Project Delivery secured commenced1 Completion date2 Residential Commercial Remaining backlog units backlog sqm ‘0003 end value ($b)4 Land payment model For personal use only urbanisation Australia Barangaroo South, Sydney Brisbane Showgrounds
Slide 66: Apartments settlement and completion profile
Lendlease FY20 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 and Melbourne Melbourne Quarter East Tower 3 719 50% 100% 417 0.3 FY21 London Elephant Park
Slide 67: Commercial completion profile
Lendlease FY20 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 40 Melbourne Connect FY21 3 Milan Milano Santa Giul
Slide 68: Conversion of secured residential for rent pipeline
Lendlease FY20 Financial Results 35 Indicative conversion timing1 of secured residential for rent pipeline to FY25 Conversion of City Project Buildings Sector Units FY21 FY22 FY23 FY24 FY25 For personal use only secured 2 London Deptford Landings - Stage 1 1 Residential 251 Milan Milan Innovation Di
Slide 69: Conversion of secured commercial pipeline
Lendlease FY20 Financial Results 36 Indicative conversion timing1 of secured commercial pipeline to FY25 Conversion of City Project Buildings Sector sqm ‘0002 FY21 FY22 FY23 FY24 FY25 For personal use only secured Melbourne Melbourne Quarter Kuala Lumpur The Exchange TRX 1 2 Office Hotel / Office 73
Slide 70: Communities projects
Lendlease FY20 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 13,960 sqm ‘0003 2,028 Elliot Springs QLD Land management FY62 10,535 1,050 Shoreli
Slide 71: Urbanisation deal structuring
Lendlease FY20 Financial Results 38 Development Communities Apartments for Sale Urbanisation Forward sale Joint venture structure For personal use only deal structuring • Office: Spark One and Two, Milano Santa Giulia • One Sydney Harbour, • tailored to local Project examples St Marys - Jordan Sprin
Slide 72: Land payment models
Lendlease FY20 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 La
Slide 73: Construction Segment
For personal use only Construction Segment South Australia: Osborne South Development Project
Slide 74: Earnings drivers - Construction
Lendlease FY20 Financial Results 41 Earnings drivers - Construction For personal use only EBITDA margin target 2-3%; Backlog $13.9b Construction Non Core Region Australia Asia Europe Americas Australia Revenue months last 12 $3.2b $0.3b $0.8b $3.4b $2.9b realisation Backlog FY21 36% FY21 68% FY21 74
Slide 75: Construction FY20 overview
Lendlease FY20 Financial Results 42 Overview Performance FY19 FY20 Construction • Provides project management, design and construction services, Core business EBITDA mix % 14 18 For personal use only predominantly in the defence, mixed use, commercial and residential FY20 sectors EBITDA margin New w
Slide 76: Construction earnings
Lendlease FY20 Financial Results 43 EBITDA ($m) EBITDA margin Construction FY19 FY20 FY19 FY20 For personal use only earnings 211 3.1% 3.0% 4.3% 2.2% 1.1% 1.3% 0.7% 126 (0.2%) (4.3%) (1.2%) 97 101 40 46 24 (1) (11) (9) Australia Asia Europe Americas Total Australia Asia Europe Americas Total EBITDA
Slide 77: Construction backlog
Lendlease FY20 Financial Results 44 Backlog ($b) FY20 backlog by region Construction Australia Asia Europe Americas For personal use only backlog 15.2 15.7 15.2 15.6 13.9 32% $13.9b 54% 9% 5% FY16 FY17 FY18 FY19 FY20 FY20 backlog by client FY20 backlog by sector Lendlease Corporate Government Commer
Slide 78: Construction backlog by region
Lendlease FY20 Financial Results 45 Group ($b) Australia ($b) Construction For personal use only backlog by 7.5 (7.6) 4.3 (3.2) region 15.6 (1.6)² 13.9 6.9 (0.5) 7.5 Book to bill¹: 1.0 Book to bill¹: 1.3 FY19 New work Revenue FX and FY20 FY19 New work Revenue Other FY20 secured realised Other secure
Slide 79: Australia: major projects
Lendlease FY20 Financial Results 46 Australia: Project Location Contract Contract Secured Completion type3 value4 ($m) date date5 Sector For personal use only Crown Sydney Hotel Resort NSW MC 1,091.4 FY15 FY21 Hotel/Entertainment Major RAAF Tindal Stage 6 and USFPI Airfield Works NT MC 1,083.2 FY20
Slide 80: Asia and Europe: major projects
Lendlease FY20 Financial Results 47 Contract Contract Secured Completion Asia and Project Location type3 value4 ($m) date date5 Sector For personal use only Asia Europe: Major The Exchange TRX - Retail Kuala Lumpur MC 544.8 FY18 FY23 Commercial Projects1,2 Ardor Gardens Shanghai, China CM 196.6 FY19
Slide 81: Americas: major projects
Lendlease FY20 Financial Results 48 Contract Contract Secured Completion Americas: Project Location type3 value4 ($m) date date5 Sector For personal use only Americas Major Jacob K. Javits Convention Center New York LS 908.4 FY17 FY21 Hotel/Entertainment Projects1,2 New York Methodist Hospital Clipp
Slide 82: Investments Segment
For personal use only Investments Segment Singapore: 313@somerset
Slide 83: Earnings drivers - Investments
Lendlease FY20 Financial Results 50 Earnings drivers - Investments For personal use only ROIC target 8-11%1; Invested capital $3.7b Ownership Earnings Operating Earnings Capital intensive activities Capital light activities Co-investment Retirement US Military US Telco Funds Commercial Residential I
Slide 84: Investments FY20 overview
Lendlease FY20 Financial Results 51 Overview Performance FY19 FY20 Investments • Owns and/or manages investments including a leading investment Core business EBITDA mix % 33 25 For personal use only management platform and also includes the Group’s ownership FY20 interests in co-investments, Retirem
Slide 85: Investments earnings and ownership
Lendlease FY20 Financial Results 52 EBITDA by region ($m) Investments EBITDA by activity ($m) Investments FY19 FY20 FY19 FY20 For personal use only earnings / 489 ownership 330 345 198 140 144 100 50 67 48 35 9 (10) (58) Australia Asia Europe Americas Total Ownership interests¹ Operating earnings² I
Slide 86: Funds Under Management
Lendlease FY20 Financial Results 53 FUM ($b) Funds Under CAGR² of 11.1% For personal use only Management1 35.2 36.0 (FUM) 23.6 26.1 30.1 FY16 FY17 FY18 FY19 FY20 FY20 FUM by asset class FY20 FUM by region Office Retail Residential Industrial Other Australia Asia Europe Americas 3% 2% 3% 5% 4% 24% 36
Slide 87: FUM by region
Lendlease FY20 Financial Results 54 Group ($b) Australia ($b) FUM1 by For personal use only region 3.9 (1.9) 1.4 (1.2) (1.4) (0.7) 0.2 36.0 24.8 0.4 24.7 35.2 FY19 Additions Divest- Revaluations FX and FY20 FY19 Additions Divest- Revaluations Other FY20 ments Other ments Asia ($b) Europe ($b) 1.7 (0
Slide 88: FUM by region: funds and mandates
Lendlease FY20 Financial Results 55 FUM1 by Australia FUM Managed Investment Mandates Fund type Core Asset class Various FY19 ($b) 4.4 FY20 ($b) 5.3 For personal use only Australian Prime Property Fund Commercial Core Office 5.1 5.2 region Lendlease International Towers Sydney Trust Australian Prime
Slide 89: Major fund summary
Lendlease FY20 Financial Results 56 Major fund summary1 For personal use only FY20 funds management platform APPFR2 APPFC3 APPFI4 LLITST5 LLOITST6 PLQ7 ARIF8 3 (Jem) PPPL9 LLGCREIT10 LRAP11 Total assets $b 4.4 5.2 1.1 4.8 2.7 3.3 1.7 1.4 1.5 1.0 Gearing % 29.9 6.3 9.6 16.5 19.1 59.5 42.4 37.1 35.1 4
Slide 90: Investments: co-investments
Lendlease FY20 Financial Results 57 Investments1 Australia co-investments Australian Prime Property Fund Commercial FY20 Lendlease interest 8.1% FY19 ($m) 369 FY20 ($m) 372 For personal use only Lendlease International Towers Sydney Trust 3.9% 238 153 Australian Prime Property Fund Industrial 10.5%
Slide 91: Assets Under Management by region
Lendlease FY20 Financial Results 58 Assets Under Commercial FY20 GLA2 For personal use only sqm '000 FY19 ($b) FY20 ($b) Management Australia 774.7 7.5 6.1 (AUM)1 by Asia 475.9 7.2 8.5 Europe 141.7 0.7 0.5 region Total 1,392.3 15.4 15.1 Residential Total Military Housing Residential for Rent Avg por
Slide 92: Retirement summary
Lendlease FY20 Financial Results 59 Value drivers1 FY19 FY20 Investment ($m) Retirement Long term growth rate % 3.5 3.5 For personal use only summary Discount rate Average length of stay – ILUs % years 12.3 11 12.4 11 1,397 1,354 Number of established units no. 12,785 12,858 Units resold no. 842 874
Slide 93: Important notice
Lendlease FY20 Financial Results 60 Important This document (including the appendix) has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) (Lendlease) in good faith. Neither Lendlease (including any of its controlled entities), nor Lendlease Trust (together referred to a