Lendlease Group · ASX:LLC
Lendlease — Investor Presentation (September 2009)
17 slides from Lendlease's investor presentation, Sep 11, 2009
Slide 1: Cover letter to ASX: Investor Presentation on Public Private Partnerships
11 September 2009 For personal use only The Manager The Manager Companies Section Companies Section Australian Securities Limited New Zealand Exchange Limited Pages: Seventeen (17) pages Dear Sir Lend Lease Investor Presentation on Public Private Partnerships Please find attached a presentation give
Slide 2: Public Private Partnerships Investor Presentation
For personal use only Public Private Partnerships Investor Presentation Mark Menhinnitt Head of PPP
Slide 3: Agenda
Agenda For personal use only 1 PPP Model & Rationale 2 PPPs & Fit with LLC Strategy 3 Market Observations 4 Market Attractiveness 5 Key Strategic Actions 6 Canada & Capella Capital 2
Slide 4: PPP Model & Rationale
1 PPP Model & Rationale For personal use only “Public Private Partnerships are partnerships between the public sector and the private sector for the purposes of designing, planning, financing, constructing and/or operating projects which would be regarded traditionally as falling within the remit of
Slide 5: PPP Model & Rationale: Two Distinct Market Sectors
1 PPP Model & Rationale For personal use only Two Distinct Market Sectors & Sub Segments: Economic Infrastructure markets (with/without patronage risk) e.g. : Roads & Bridges Transport Ports Segments within Utilities & Municipal Services Social Infrastructure (availability payment - no/limit
Slide 6: PPP Model & Rationale: Simplified Deal Structure
1 PPP Model & Rationale For personal use only Simplified Deal Structure Government Equity Project Agreement Subscriptions License/Ground Lease Finance Project Company Development Agreements and D&C & Funding (SPV) Agreements AM & FM Operations Agreements 5
Slide 7: Why are Governments attracted to the PPP model?
1 PPP Model & Rationale For personal use only Why are Governments attracted to the PPP model? Government can accurately measure the “Total Cost of Ownership” warranted by the private sector Integration of Design/Construction/Operations/Maintenance/Life-cycle costs into quarterly payments Far g
Slide 8: PPPs & Fit with LLC Strategy
2 PPPs & Fit with LLC Strategy For personal use only Public Private Partnerships are awarded based on the ability to add value over and above what the government can achieve themselves. Successful PPP players: Deliver value via integration across 9 Product Development 9 Detail design and construct
Slide 9: Market Observations & Issues
3 Market Observations & Issues For personal use only Observation Opportunity/Impact New capital adequacy ratios will limit Will limit quantum of equity capital available from banks, requiring more equity availability of and pricing of project participants for large projects equity. Provides Lend
Slide 10: Market Attractiveness: Strategy / Competitive Advantage Template
4 Market Attractiveness Strategy / Competitive Advantage Template For personal use only MHPI Criteria UK Australia Canada (Actus) Scale Sectors 3 3 3 3 Scale Projects 3 3 3 3 Deep & Visible Pipeline 3 x 3 3 High Barriers to Entry 3 3 3 3 Ability to create differentiated proposition 3 3 3 3 Ability t
Slide 11: Market Attractiveness: Financial Template
4 Market Attractiveness Financial Template For personal use only Criteria MHPI UK Australia Canada (incl. fee/margin streams) (Actus) Moderate Peak Capital Requirements 3 33 3 3 Velocity of capital x N/A 3 3 Bid costs exposure pre-award x 3 x 3 Closing costs exposure post award 3 x 3 3 Cash positive
Slide 12: Key Strategic Actions: UK and Actus (USA)
5 Key Strategic Actions For personal use only UK Status Secure partnerships with preferred local authorities with Lancashire and Birmingham secured. Expect to bid 2-3 major programs per large scale education, housing & utility needs year, subject to government funding. Increase velocity of project e
Slide 13: Key Strategic Actions: Canada and Australia
5 Key Strategic Actions For personal use only Canada Status Establish Canadian PPP origination and management Underway. Sponsor JV in place for first project to pass local experience criteria. platform Bulk of capability exists within current LL Americas platform. Bid 2-3 PPPs in FY10, leveraging Ac
Slide 14: Canada - Market Attractiveness
6 Canada - Market Attractiveness A Strong Sustainable Pipeline in Social Infrastructure PPP projects For personal use only 60+ PPP Transactions Closed to Date, Valued at ~ $15B; half in healthcare sector. 10-12 Projects - CAD$3B+ / Year over Next Five Years; two thirds of future pipeline in healthca
Slide 15: Canada - Market Attractiveness: Visible Pipeline of Projects
6 Canada - Market Attractiveness Visible Pipeline of Projects For personal use only 14
Slide 16: Capella Capital: A Partnership With Lend Lease
6 Capella Capital A Partnership With Lend Lease For personal use only Business Scope • Financial advisory and project origination services for projects in Australia in the health, education, justice, housing, roads, transport, defence and utilities/municipal services sectors • The procurement of Pro
Slide 17: Capella Capital: Business Rationale
6 Capella Capital A Partnership With Lend Lease For personal use only Business Rationale • Capella provides LLC a low cost, low risk entry into the PPP and infrastructure origination market. • Preference is to support the Lend Lease integrated model where possible – maximises control of the deal and