Lendlease Group · ASX:LLC
Lendlease — Macquarie Australia Conference 2022
17 slides from Lendlease's conference presentation, May 4, 2022
Slide 1: Lendlease presentation at Macquarie Australia Conference
04 19 May 2022 22 August 2019 2018 Lendlease presentation at Macquarie Australia Conference Attached is the presentation to be given by Lendlease Global Chief Executive Officer, Tony Lombardo at today’s Macquarie Australia Conference being held in Sydney. FOR FURTHER INFORMATION, PLEASE CONTACT: Inv
Slide 2: Presentation to Macquarie Conference
Presentation to Macquarie Conference Tony Lombardo Global Chief Executive Officer 4 May 2022 Sydney: Waterman’s Residences, One Sydney Harbour Artist’s impression
Slide 3: Acknowledgement of Country
Presentation to Macquarie Conference 2022 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 4: Strategic direction
Presentation to Macquarie Conference 2022 3 Strategic direction
Slide 5: HY22 result
Presentation to Macquarie Conference 2022 4 Reset year impacting financial performance HY22 HY22 reflects foreshadowed weak operating conditions and impact of restructuring charge and development impairment result $28m ($264)m Strong Core operating1 Profit after Tax Statutory Loss after Tax Financia
Slide 6: Cost reduction and Development portfolio review
Presentation to Macquarie Conference 2022 5 Cost reduction Operating cost savings identified1 ($m) Cost savings and restructuring charge and Remain on track for targeted savings of >$160m 1: H1 FY22 Remaining Development (120) • Actions to HY22 realised c.$100m annualised cost savings: − Headcount r
Slide 7: Global presence, local expertise
Presentation to Macquarie Conference 2022 6 Global presence, local London expertise1 • Thamesmead Waterfront • Euston Station • Silvertown Quays • International Quarter London • Elephant Park • High Road West Chicago • Smithfield, Birmingham • Southbank San Francisco • Lakeshore East • San Francisco
Slide 8: Environmental, Social and Governance
Presentation to Macquarie Conference 2022 7 HY22 key achievements Environmental, Social and Launched Raised Launched Published Published Governance global £250 million Mission Zero Modern Slavery inaugural sustainable decarbonisation Statement Sustainable via debut timber partnership with roadmaps c
Slide 9: Investments: Pathway to achieving scale
Presentation to Macquarie Conference 2022 8 Investments: Pathway to achieving scale FUM target $70b by FY26 Progress and outlook >$70b c.$7b1 of partnerships and initiatives to grow FUM: • International Quarter London with CPP – $2.8b c.12% CAGR • Investment mandate with Keppel REIT – $0.3b • Indust
Slide 10: Development: Accelerate delivery of $112b global pipeline
Presentation to Macquarie Conference 2022 9 Development: Accelerate delivery of $112b global pipeline Double completions to $8b per annum from FY24 Progress and outlook WIP Completions HY22 expected low point for profitability: • H1 low completions 16.1 15.1 14.5 • H2 anticipated recovery 12.3 11.2
Slide 11: Construction: Execution excellence, maintain capability
Presentation to Macquarie Conference 2022 10 Construction: Execution excellence, maintain capability Consistent margins of 2-3% Progress and outlook Resilient despite COVID disruptions: Core Construction EBITDA margin • Financial performance within target range • Productivity impacts from shutdowns
Slide 12: Outlook
Presentation to Macquarie Conference 2022 11 Outlook Group • Well progressed on new operating model • On track for savings target >$160m pa • Profitability expected to significantly improve from H2 FY22 • Financial capacity to deliver five year plan • ROE target expected to be met by FY24 Existing s
Slide 13: Questions
Presentation to Macquarie Conference 2022 12 Questions
Slide 14: Earnings drivers Investments
Lendlease HY22 Financial Results 13 Earnings drivers ROIC target 6-9%1 Investments Invested capital $3.9b Investment Portfolio Earnings Management Earnings Co-investment Commercial Residential positions in Retirement Funds asset asset managed funds Living Other management management management $2.4b
Slide 15: Earnings drivers Development
Lendlease HY22 Financial Results 14 ROIC target 10-13% Earnings drivers Invested capital $5.0b Development Pipeline1 $111.8b Development Phase In Conversion Master planned Work in Progress $52.0b $43.7b $16.1b pipeline pipeline pipeline $0.4b $1.9b $2.7b capital capital capital Completions target of
Slide 16: Earnings drivers Construction
Lendlease HY22 Financial Results 15 EBITDA margin Earnings drivers target 2-3% Construction Backlog1 $10.9b Australia Asia Europe Americas Revenue Revenue Revenue Revenue in the last in the last in the last in the last 6 months 6 months 6 months 6 months $1.5b $0.2b $0.5b $1.1b Backlog1 Backlog1 Bac
Slide 17: Important notice
Presentation to Macquarie Conference 2022 16 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 refe
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