Lendlease Group · ASX:LLC
Lendlease — Macquarie Australia Conference 2016
19 slides from Lendlease's conference presentation, Jul 3, 2016
Slide 1: Macquarie Australia Conference
Macquarie Australia Conference Tarun Gupta, Group Chief Financial Officer Lendlease
Slide 2: Indigenous engagement and reconciliation
MACQUARIE AUSTRALIA CONFERENCE 2016 2 Indigenous engagement and reconciliation Lendlease’s vision for Reconciliation is one in which all our employees acknowledge and celebrate the proud heritage of Australia’s First Peoples and promote opportunities for career development, sustainable business grow
Slide 3: Strong 1H16 performance
MACQUARIE AUSTRALIA CONFERENCE 2016 3 Strong 1H16 performance EBITDA EPS NPAT $512 million 60.9 cents $354 million Up 10% Up 12% Up 12% Residential pre-sold Return on Equity Distribution revenue 13.4 % 30.0 cents $5.4 billion Up 50 bps Up 11% Up 49% Development pipeline Construction backlog FUM $46.
Slide 4: Delivering growing earnings underpinned by a strong base of recurring income
MACQUARIE AUSTRALIA CONFERENCE 2016 4 Delivering growing earnings underpinned by a strong base of recurring income 100% Circa 60%-70% of earnings are derived from 80% residential, commercial and Operating EBITDA $m retail development activities and from 60% construction/services margin 40% Circa 30%
Slide 5: Continued momentum in 2H16
MACQUARIE AUSTRALIA CONFERENCE 2016 5 Continued momentum in 2H16 Development • Continued residential demand: • Victoria Harbour (One Collins Wharf launched) in Melbourne • Future apartment launches in progress • No change to our disciplined approach to pre-sales, portfolio management and diversifica
Slide 6: Consistent long term performance and growth
MACQUARIE AUSTRALIA CONFERENCE 2016 6 Consistent long term performance and growth Residential Pre Sold Construction Development Funds Under Revenue ($bn) Backlog Revenue Pipeline ($bn) Management 50 6 20 ($bn) 25 ($bn) 19 45 5 20 18 40 4 17 15 35 3 16 15 10 30 2 14 25 1 1H15 5 1H16 FY14 FY15 1H15 1H
Slide 7: World Urbanisation Prospects: The 2014 Revision – United Nations
7 1 ‘World Urbanisation Prospects : The 2014 Revision – United Nations
Slide 8: Competitive positioning
MACQUARIE AUSTRALIA CONFERENCE 2016 8 Competitive positioning Fast growing global Development • Lendlease operates in a number of Investment capabilities across Management platform, residential (apartments markets and disciplines across managing $22.0 billion1 and land sub-division) property and inf
Slide 9: Urbanisation remains a key driver of future growth for the Group
MACQUARIE AUSTRALIA CONFERENCE 2016 9 Urbanisation remains a key driver of future growth for the Group 50 100% of estimated remaining end development value $46.6 $44.9 1H16 Urbanisation billion Developments by region billion $37.2 $37.4 $37.7 40 $34.7 billion billion billion billion $35.0 billion ($
Slide 10: Our approach to Urban Regeneration provides delivery flexibility
MACQUARIE AUSTRALIA CONFERENCE 2016 10 Our approach to Urban Regeneration provides delivery flexibility and optimises risk adjusted returns across the integrated model Capital Model Benefits to Lendlease Examples • Typically staged land and • Enables control of diversified infrastructure commitments
Slide 11: Diversified portfolio of major urban regeneration projects delivering long term earnings streams
MACQUARIE AUSTRALIA CONFERENCE 2016 11 Diversified portfolio of major urban regeneration projects delivering long term earnings streams Project Land ownership structure Project Delivery End value1 FY16 FY17 FY18+ secured commenced Integrated development projects Barangaroo South, Sydney Staged payme
Slide 12: PwC Report, Asset Management 2020: A Brave New World
12 4 ‘PwC Report, ‘Asset Management 2020: A Brave New World’
Slide 13: Globally real estate remains a favoured alternative asset class
MACQUARIE AUSTRALIA CONFERENCE 2016 13 Globally real estate remains a favoured alternative asset class for major investment and sovereign wealth funds Europe US$26tn North America Japan US$4tn US$44tn Asia/rest of world Global AUM US$4tn ~US$78tn Lendlease has 19 global capital partners with AUM >A$
Slide 14: Total equity raised globally for core mandates
MACQUARIE AUSTRALIA CONFERENCE 2016 14 Total equity raised globally for core mandates By vintage year in US$bn Strong market position Since 2009 total global equity raised for core Latest interim close for funds currently in the market seeking capital (US$bn) mandates is circa US$72 billion. Lendlea
Slide 15: Funds under management growth correlated to increase in our urbanisation portfolio
MACQUARIE AUSTRALIA CONFERENCE 2016 15 Funds under management growth correlated to increase in our urbanisation portfolio 12 major urban regeneration 25 Funds Under Management (LHS) Cumulative new equity raised (RHS) projects 12 10 20 Three major 8 urban 15 $ billion regeneration $ billion projects
Slide 16: Disciplined approach to portfolio management and capital allocation
MACQUARIE AUSTRALIA CONFERENCE 2016 16 Disciplined approach to portfolio management and capital allocation 6. Potential to 1. Alignment to • Urbanisation trends mean deliver multiple strategy there is no shortage of Group earnings streams large scale opportunities • Significant current appetite from
Slide 17: Outlook
MACQUARIE AUSTRALIA CONFERENCE 2016 17 Outlook • Strong financial performance with continued focus on urbanisation trends. International markets delivering further geographic diversity and growth opportunities • Strong relationships with third party capital partners a key component of our future gro
Slide 18: Thank you
THANK YOU lendlease
Slide 19: Important Notice
MACQUARIE AUSTRALIA CONFERENCE 2016 19 Important Notice 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 presentat