Lendlease Group · ASX:LLC
Lendlease — Investor Presentation (April 2020)
30 slides from Lendlease's investor presentation, Apr 28, 2020
Slide 1: Initiatives to Strengthen Balance Sheet and Support Future Growth
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 1 Initiatives to Strengthen Balance Sheet and Support Future Growth 28 April 2020
Slide 2: Important notice and disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 2 Important notice and disclaimer This investor presentation (including the appendices) (Presentation) is dated 28 April 2020 and has been prepared by Lendlease Corporation Limited (ABN 32 000 226 228) and Lendlease Responsible Entity Limited (ABN
Slide 3: Important notice and disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 3 Important notice and disclaimer Financial Information All financial information in this Presentation is in Australian dollars (A$ or AUD) unless otherwise stated. This Presentation includes certain pro forma financial information. The pro forma
Slide 4: Important notice and disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 4 Important notice and disclaimer Disclaimer The Joint Lead Managers and their affiliates are full service financial institutions engaged in various activities, which may include trading, financing, corporate advisory, financial advisory, investme
Slide 5: Important notice and disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 5 Important notice and disclaimer You acknowledge and agree that Lendlease is required by the terms of the ASX Class Waiver Decision – Temporary Extra Placement Capacity dated 22 April 2020 to announce to the market reasonable details of the appro
Slide 6: Equity Raising to Strengthen Balance Sheet and Support Future Growth
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 6 Equity Raising to Strengthen Balance Sheet and Support Future Growth ◼ Lendlease Group (Group) is undertaking an equity raising as a prudent measure to strengthen its balance sheet given current market uncertainties ◼ This will enable the Group
Slide 7: Attractive Investment Proposition
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 7 Attractive Investment Proposition Integrated model delivers long-term securityholder value Development Pipeline ($bn) Construction backlog revenue ($bn) ◼ Continued focus on leveraging the Group’s competitive advantage across its urbanisation an
Slide 8: COVID-19 Update
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 8 COVID-19 Update ◼ Lendlease's ongoing priority is the health and safety of our people and all who interact with the organisation, its projects and places Health and globally Safety ◼ The Group has progressively introduced measures across its glo
Slide 9: Core Business Update
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 9 Core Business Update ◼ Recent progress with our urbanisation projects include: — Conditional framework agreement to form a 50/50 investment partnership to develop the $4 billion Milano Santa Giulia project over 15 years including the Group selli
Slide 10: Non-Core Business Update
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 10 Non-Core Business Update ◼ Sale of the Engineering business to Acciona for $180m continuing — FIRB approval obtained Sale of — Work on satisfying other conditions is continuing Engineering — Too early to determine whether these conditions will
Slide 11: Pro Forma Liquidity
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 11 Pro Forma Liquidity Commentary Pro forma liquidity (as at 24 April 2020) ◼ Total liquidity of $3.1b1 at 31 December 2019, representing cash and undrawn debt facilities $0.95b ◼ Payment of 1H20 distributions of $0.2b in ($0.2b) March 20202 $0.9b
Slide 12: Details of the Offer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 12 Details of the Offer ◼ Underwritten institutional Placement to raise $950m Structure — Approximately 96.9m new securities to be issued (approximately 17.2% of existing securities on issue) ◼ Non-underwritten SPP to raise up to $200m1 ◼ Further
Slide 13: Offer Timetable
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 13 Offer Timetable Event Date1 Record date for SPP 7:00pm, Monday, 27 April 2020 Trading halt and announcement of Placement and SPP Tuesday, 28 April 2020 Placement bookbuild Tuesday, 28 April 2020 Announcement of outcome of Placement Wednesday, 2
Slide 14: Appendix A: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 14 Appendix A Key Risks
Slide 15: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 15 Key Risks This section discusses some of the key risks associated with any investment in Lendlease, which may affect the value of Lendlease securities. The risks set out below are not listed in order of importance and do not constitute an exhau
Slide 16: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 16 Key Risks Debt covenants Lendlease has various covenants in relation to its debt facilities, including interest cover, gearing and negative pledge covenants. While there is currently adequate head-room to Lendlease financial covenants, factors
Slide 17: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 17 Key Risks Construction activity risk Lendlease is subject to risks associated with construction activities, including: • the ability of third parties such as designers, joint venture partners and subcontractors to perform their work in accordan
Slide 18: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 18 Key Risks Acquisition and divestment risk Lendlease may pursue large scale acquisitions of new assets or businesses as opportunities arise that meet its investment criteria and if funding is available on acceptable terms. If such acquisitions a
Slide 19: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 19 Key Risks Conflicts of interest with joint venture partners Lendlease currently undertakes joint ventures on development and construction projects and asset ownership. At times, major decisions are required to be made in respect of these develo
Slide 20: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 20 Key Risks Accounting and provisions In accordance with applicable accounting standards, Lendlease is required to make judgements and estimates that affect amounts reported in its consolidated financial statements or otherwise announced to the m
Slide 21: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 21 Key Risks Counterparty/credit risk Counterparty risks may arise in circumstances where parties with which Lendlease has dealings experience financial difficulties or reputational issues with consequential adverse effects for the relevant projec
Slide 22: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 22 Key Risks Cyber and information security risk Lendlease may be affected by threats and vulnerabilities in connection with its information systems, control systems or communications systems, or by any consequences of unauthorised access to or th
Slide 23: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 23 Key Risks Distributions The payment of distributions in respect of Lendlease's securities is impacted by several factors, including Lendlease's profitability, retained earnings, availability to frank dividends, capital requirements and free cas
Slide 24: Appendix B: Underwriting agreement summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 24 Appendix B Underwriting agreement summary
Slide 25: Underwriting agreement summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 25 Underwriting agreement summary Lendlease has entered into an underwriting agreement with the Joint Lead Managers in respect of the Placement (Placement Agreement) and pursuant to which the Joint Lead Managers are acting as managers, bookrunners
Slide 26: Underwriting agreement summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 26 Underwriting agreement summary In addition, the following termination events will depend on whether, in the bona fide opinion of the Joint Lead Managers, the event has, or is likely to have, a material adverse effect on the outcome or the succe
Slide 27: Appendix C: Foreign Jurisdictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 27 Appendix C Foreign Jurisdictions
Slide 28: International offer restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 28 International offer restrictions This document does not constitute an offer of new stapled securities (New Securities) of Lendlease Corporation Limited and Lendlease Responsible Entity as responsible entity of Lendlease Trust (together, Lendlea
Slide 29: International offer restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 29 International offer restrictions • is large within the meaning of clause 39 of Schedule 1 of the FMC Act; • is a government agency within the meaning of clause 40 of Schedule 1 of the FMC Act; or • is an eligible investor within the meaning of
Slide 30: International offer restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 30 International offer restrictions United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of