Lendlease Group · ASX:LLC
Lendlease — JP Morgan Australasian Investment Conference 2006
43 slides from Lendlease's conference presentation, Oct 3, 2006
Slide 1: ASX announcement: Presentation by Group CEO at JP Morgan conference
i Lend Lease Corperation 3 October 2006 The Manager Companies Section Australian Stock Exchange Limited Pages: Forty-three (43) pages Dear Sir Stock Exchange Announcement The Manager Companies Section New Zealand Stock Exchange Limited Presentation by Group CEO at JP Morgan Australasian Investment C
Slide 2: Lend Lease JP Morgan Australasian Conference, Edinburgh
Lend Lease JP Morgan Australasian Conference Edinburgh September 2006
Slide 3: Statutory Profit A$415.2m
Statutory Profit A$415.2m Operating Profit (*) A$354.2m Earnings Per Share ) 88.7¢ Final Dividend ©) 31¢ Notes: () Net Profit After Tax excluding property revaluations @ eps calculated using total weighted average shares on issue ® Fully franked, compared to final dividend 2005 84% 24% 24% 7%
Slide 4: EPS and Dividend 2002-2006
eps Dividend 100 5 n- 60 5 50 5 40 cents cents 30 5 207 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 ES AGAAP GI AIFRS Interim @ Final Calculated based on operating profit and total weighted average shares on issue
Slide 5: NPAT June 2005 to June 2006 bridge
A$m 400 350 300 250 200 73.5 (6.0) tis a 354.2 285.7 NPAT June 2005 Retail & Project Investment Group Services & NPAT June 2006 Communities Management, Management Treasury Construction & PFI eps = z reg EAM ice
Slide 6: PAT FY 2006 by region and business
A$m PAT FY 2006 180 5 160 5 140 5 120 5 100 5 166 140 : 126 Asia Pacific Europe Americas Retail & Communities > Growth > A$168m Investment Management —} Recurringincome >» A$129m Project Management, > High ROIC > A$t35m Construction & PFI Cash generation
Slide 7: Integrated model: investment management and delivery capability
Product + “Free” cashflow + Intellectual property Source of Underpins design & delivery capital credit rating capability Underpins credit —_—————> Investment Management Design & delivery capability
Slide 8: Business Highlights
Lend Lease Business Highlights
Slide 9: Total returns from retail investments - circa 17%
Total returns from retail investments - circa 17% = Value of Lend Lease interest up A$277m - 11% in FY 2006 = Growth in NOI responsible for half increase Development projects delivered on target = Chapelfield - A$33.3m profit = Macarthur Square - A$220m @ 8% initial yield Significantly grown develop
Slide 10: The Meadows, Chelmsford catchment and opportunity
= Catchment demographics = Population circa 1.5m = Per capita spend circa 16% above UK average Braintree Colchester e M11 Growth Corridor = Competition = The Meadows Zone A rents circa 15% below high street = Significant “leakage” to other towns = Planning = Local authority promoting redevelopment =
Slide 11: Australia performed despite a tough market
= Australia performed despite a tough market = Circa 30 - 40% revenue non residential = High ROCE - circa 18% = Assets sold into Core Plus Fund = UK platform for growth established = Acquisition and integration of Crosby = Trading in line with expectations = US also positioned for growth = Actus mar
Slide 12: Market leader in target sectors and markets
= Market leader in target sectors and markets = #74 Multifamily in USA = #2 Healthcare in USA = #3 overall in UK = 18% PFI hospital market in UK = 25% growth in Australian backlog = UK solid recovery in second half = Strong relationships with client base and supply chain in each market * Closing bac
Slide 13: Key wins and opportunities supporting GPM growth
A number of key wins and opportunities will continue to support our GPM growth (sample list} Region Value A$m FY 2006 FY 2007 FY 2008 FY 2009 Rouse Hill Retail Asia Pacific 330 . Brisbane Airport Asia Pacific 260 Australian Taxation Office, Canberra | Asia Pacific 200 Abbott Laboratories Asia Pacifi
Slide 14: Funds under management up 20% to A$9.7b
Funds under management up 20% to A$9.7b APPF Retail — reference wholesale fund in Australia = Continues to deliver top quartile performance = 3 year annualised return of 17.2% Bluewater valuation up 12% King of Prussia investment up 24% Now have suite of wholesale investment products in Australia =
Slide 15: Wholesale product platform across risk/return spectrum
Established wholesale product platform across risk / return spectrum Driven by demand from institutional investor base Uniquely positioned to deliver ongoing product from Lend Lease pipeline Target Return A Core Plus (0%12%) &> © Micure of core ang [cre non core property Risk 14
Slide 16: Capital Management
Lend Lease Capital Management
Slide 17: Credit rating, debt maturity and interest cover
S&P / Moody's credit rating Weighted average debt maturity Fixed / floating debt Interest cover Debt to Total Tangible Assets ‘) {) Debt includes other financial liabilities BBB- / Baa3 (unchanged) 6.3 years (out to 2017) 54% | 46% 78x 14.4% 16
Slide 18: Financial targets and FY06 performance
eps growth " Target 10% p.a. average growth over 5 year period Debt ratios " Gearing (Debt to TTA) " Target 30-40% < = Interest cover " EBITDA > 6x Capital returns = ROE > 15 % p.a. average over 5 year period (1) Debt (including other financial liabilities) / total tangible assets Dividend policy =
Slide 19: Realisation of value through capital velocity
= Business model involves the realisation of value through significant capital velocity Velocity of Capital - 12 months to June 2006 6.0 5 5.5 4 4 Total 5.0 Total Divestment 45 4 investment A$2.0b oat 2 A$2.5b 4.05 0 3.5 4 Opening 3.0 5 Copial ASS 3D 25 T T T T T Invested Capital Invested in period
Slide 20: Improving Return on Equity
Slide 21: Outperformance
OUTPERFORMANCE
Slide 22: Market leading positions in each business
Market leading positions in each business Clear visibility of opportunities Will continue to leverage synergies across businesses Strong Balance Sheet with capacity to leverage Well placed to deliver recurring, growing operating earnings
Slide 23: Lend Lease JP Morgan Australasian Conference, Edinburgh
Lend Lease JP Morgan Australasian Conference Edinburgh September 2006
Slide 24: Appendices
Lend Lease Appendices
Slide 25: Operating profit by business, June 2006 vs June 2005
Retail & Communities Project Management, Construction & PFI Investment Management Operating Business Group Services & Amortisation Group Treasury Operating Profit Property Investment Revaluations One-off Items Statutory Profit June 2006 June 2005 % change A$m A$m 167.5 94.0 78% 134.6 140.6 (4%) 129.
Slide 26: Retail and Communities NPAT bridge
A$m 200 180 160 140 120 100 (1.5) 167.5 24.8 NPAT June 2005 Retail LLe Aust LLe UK LLe US NPAT June 2006 Note: LLc refers to Lend Lease Communities
Slide 27: Retail investment value movement
3,200 5 3,000 + 41 2,958 302 2,800 + 2,600 + aT = < 2,400 4 a) Via Investment 2,338 <~ Management P&L 2,200 + 2,000 + 1,800 T T 1 ; 1 June 2005 Revaiuations Acquisitions Exchange Rate June 2006 Movement / Other “) Excludes Chapelfield which was under contract at June 2005
Slide 28: Property revaluations after tax
Profit& Fair Value Not Total Loss Reserve Recorded FY 2006 A$m A$m A$m A$m Retail = Lend Lease Overgate Partnership 16.1 16.1 = Performance Limited Retail Partnership 9.2 9.2 = King of Prussia 74.4 741 = APIC II 12.8 12.8 = Lend Lease Retail Partnership 7A 74 = Warrington Retail Limited Partnership
Slide 29: Retail development pipeline
Project Location Lend Lease Estimated Estimated Estimated Ownership Completion Additional Development % Date GLA m? Cost A$m Work in Progress = Golden Square Warrington 50.0 2007 34,800 360 Approved = Overgate (extension) Dundee 30.7 2009 20,000 240 In planning / concept design " Bluewater (events v
Slide 30: Communities backlog and military housing
Communities Region Number of Projects Backlog Units Zoned " Delfin Lend Lease Australia 19 27,250 « Lend Lease Development Australia 9 8,100 = Senior Living Australia 13 650 = The Crosby Group UK 18 3,550 = Other Communities UK 2 10,150 = Other Communities Americas 2 3,025 Total zoned 63 52,725 Unzo
Slide 31: Project Management, Construction & PFI NPAT bridge
180 FX impact 160 - 33.6 140.6 140 4 134.6 120 + 100 + NPAT June 2005 — Asia Pacific Americas UK/Europe PFI NPAT June 2006
Slide 32: Backlog, GPM and new work secured
Backlog GPM New Work Secured 800 - 700 - 600 - 500 - § 400 - 300 - 200 - 100 - 0 June 2002 June 2003 June 2004 June 2005 June 2006 June 2002 June 2003 June 2004 June 2005 June 2006 3
Slide 33: Investment Management NPAT bridge
A$m 160 140 120 100 (13.4) | | 129.5 117.0 (16.3) 104 NPAT June Funds Investments Investments Investments NPAT June 2005 Management Asia Pacific Europe US 2006
Slide 34: June 2005 Asia Pacific Europe Other June 2006
June 2005 Asia Pacific Europe Other June 2006
Slide 35: Sample Projects
Lend Lease Sample Projects
Slide 36: Macarthur Square
Centre: Location: Area: Redevelopment: Owners: Services provided by Lend Lease: Lend Lease ownership interest: Macarthur Square New South Wales 93,700m? GLA = Completed 2006 = Extended centre by 30,000m2 = A$220m = APPF Retail Fund 50% = The GPT Group 50% = Asset management = Development management
Slide 37: Caroline Springs
Project: Location Residential lots: Non-residential: Land control: Completion: Lend Lease ownership interest: Awards: Caroline Springs 22kms west of Melbourne, Victoria 7,480 = 132.5 hectare town centre = 120 hectares of open space Via land management agreement 2013 Reiail centre acquired by: = APPF
Slide 38: Beaufort Tri-Command Military Housing
Project: Location: Initial capital expenditure: Units under management: Concession term: Services provided by Actus Lend Lease: Invested equity: Beaufort Tri-Command Military Housing South Carolina US$150m 1,700 To 2053 = Development management = Construction management = Asset management US$3.3m Ka
Slide 39: Clarence Dock, Leeds
Project: Location: Residential units: Non-residential: Estimated completion date: Lend Lease interest: Land control: Clarence Dock Leeds 1,150 = 33,300m2 commercial / office = 14,400m? retail / leisure 2008 Developer Via direct ownership
Slide 40: Deutsche Bank Place, Sydney
Project: Location: Project value: Area: Architect: Completed: Services provided by Lend Lease: Deutsche Bank Place Sydney, New South Wales A$230m 43,000m2 NLA Lord Norman Foster 2005 = Project management = Construction management
Slide 41: Oncology wing, St James's University Hospital
Project: Location: Construction value: Forecast completion: Services provided by Lend Lease: Lend Lease committed equity: Oncology wing St James's University Hospital Leeds £175m 2007 = Project management = Construction management = Asset management = Facilities management £9.9m
Slide 42: Bluewater, Kent
Asset: Location: Area: Value: Retail development: Services provided by Lend Lease: Lend Lease ownership interest: Bluewater Kent 148 600m? £2.02b — up 12% Events venue (5,200m2) Estimated completion 2008 Asset management Development management Project and construction management of redevelopment 30%
Slide 43: Important information
Important information 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 presentation (any of which may change witho
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