Citigroup Investor Conference October 2010
Disclaimer Important information This presentation ti has been prepared in good faith, but no representation ti 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 without notice). To the maximum extent permitted by law, Lend Lease Corporation Limited, its directors, officers, employees and agents disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence) for any direct or indirect loss or damage which may be suffered through use or reliance on anything contained in or omitted from this presentation. Investors should consult with their own legal, tax, business and/or financial advisors in connection with any investment decision. P ti fi i l i f ti h b b d t t ti b t f t t d i Prospective financial information has been based on current expectations about future events and is, however, subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations described in such prospective financial information.
Lend Lease integrated business model We find We buy We fund We design We build We manage Sourcing the best property opportunities Structuring the right deal Providing the right investment solutions Creating innovative and sustainable property solutions Building and project managing using our global construction ti reach Continually enhancing the value of property over time 3
Our strategy A Focused Core Business Disciplined Expansion Set the Industry Standards LEAD RESTORE Right Structure t Cost Out Drive Efficiency Capital Management BUILD Reshape Portfolio Growth Platforms Operational Excellence Invest in People World Class Property Solutions Company Strong Integrated Offering Trusted Investment Manager 1 to 2 Years 2 to 4 years 4 + years 4
Lend Lease is focussed on key property growth trends Ub Urban Regeneration Leading urban renewal projects in Australia, UK and Singapore Long term pipeline Ageing Population Public Private Partnerships Sustainability No. 1 senior living platform in Australia 70 retirement villages and 33 aged care facilities Capability in US, Canada, Australia, UK and Europe 37 operational projects, 3 at preferred bidder stage Shortlisted on 8 projects Strong capabilities across the Group Delivered 100+ new green buildings in the last 12 months Fund Growth Platform Funds under management of A$10.1b 20% increase in underlying FUM growth in the year 5
Diversified earnings base June 2010 June 2010 1. Based on Operating Profit after Tax from operating businesses. 6
Result highlights Operating profit after tax of A$323.6m is 5.2% above the prior year Well progressed on our strategic path Significant pipeline of projects with major project wins secured Australia Barangaroo, RNA Showgrounds, ING Retail assets, 100% of Primelife Asia Jurong Road UK Stratford Stage 2, Elephant & Castle, financial close on Phase 1 Birmingham Schools US financial close on Phase A and Phase B of Privatization of Army Lodgings project Strong balance sheet with capacity to invest A$1.6b of cash as at June 2010 A$0.8b of equity raised Average drawn debt maturity of 5.5 years Cash from asset sales in excess of A$250 million Access to 3 rd party capital A$6.4b of new equity and debt raised over the last 18 months 7
Ferry terminal, Barangaroo South, Sydney Estimated $A6b end value Development period 10 to 15 years Stage 1-7.5 hectare site area Up to 490,000 sqm total GFA Commercial, Residential & Retail Part of the Sydney CBD New global sustainability benchmarks LL integrated approach 8
RNA showgrounds project, Brisbane 22 Estimated hectare $A6b site end value Development period 10 to 15 years Renewal of RNA Facilities Stage 1-7.5 hectare site area 5.5 hectares of land for Private Up to 490,000 sqm total GFA Development Commercial, Residential & Retail Development period 15 years Part of the Sydney CBD Commercial, New global sustainability Residential and Retail 340,000 benchmarks sqm total GFA LL integrated approach Circa $2.5b end value 9
Jurong Road, Singapore Large scale mixed use suburban development 108,000 sqm Regional shopping centre and commercial 25% owned by Lend Lease, 75% by Asian Retail Investment Fund LL integrated approach 10
Athletes Village, London Lend Lease is Development and Construction Manager for the Athletes Village Construction value 654 million Client is the Olympic Delivery Authority Project continues to progress well, within cost plan and on schedule 11
Elephant & Castle, London 1.5 billion residential led, mixed use urban regeneration scheme over 15 years c2,500 new homes Up to 500,000sft 000 of retail, restaurant and leisure space. Heads of Terms signed December 2009 Conditional Regeneration Agreement during 2010 Lend Lease is Development and Construction Manager for the Athletes Village Client is the Olympic Delivery Authority Project continues to progress well, within cost plan and on schedule 12
Actus Lend Lease defence force housing, US Actus Lend Lease is a leader in planning, designing, i building, and managing residential communities for the US military Have secured a number of phases under Privatization of Army Lodgings program Manages 40,000 residential units and 3,700 Army lodging rooms 13
Outlook Australian economy remains resilient Commercial development outlook attractive Residential market stable, inner urban strong Construction volumes likely to decline as government stimulus spending softens Asia remains strong Scarcity of quality retail development opportunities in Singapore Expect strong growth in China and Malaysia to continue UK market is likely to underperform in the medium term Prime retail cap rates have firmed, expected to stabilise Fundamental supply/ demand imbalance suggests medium to longer term growth in residential US market finely balanced Recent employment and housing starts data disappointing Increased private development enquiry and activity encouraging Offshore construction markets remain tough 14
Strong competitive position Lend Lease is in a strong competitive position The integrated model is a strong source of competitive advantage Supported by new Group regional structure Continued focus on operational excellence Strong project pipeline with funding flexibility Significant project wins Capital raised will be invested over the medium term and supported by third party equity Emphasis on quality of execution Return on equity will remain a key focus moving forward Lend Lease is very well positioned to capitalise on the key property trends 15
Citigroup Investor Conference Citigroup Investor Conference October 2010