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Agenda
1. Update on safety2. External business environment3. Key priorities for the Group4. Pipeline of opportunities5. Strategy update6. Continued focus on key trends7. Progress on strategy to date8. Key strategic deliverables 20119. Operational update Asia10. Operational update Europe
Good progress on safety
3
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY110123456789
10
Total Fatalities per Region 1
AUSTRALIA ASIA AMERICAS EMEA
As at May
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY110
100200300400500600700800
Total Lost Time Injuries per Region 1
AUSTRALIA ASIA AMERICAS EMEA
As at May
1. Excludes infrastructure business (Valemus)Gold Coast University Hospital, Queensland
External environment favourable
4
Region Outlook Opportunity/ Impact for Lend Lease
Australia
Favourable economic conditions present attractive opportunities across most sectors, particularly infrastructure
Short term impact from weak consumer sentiment Concerns of two speed economy and potential impact from interest rate rises Focus on delivery of secured pipeline of opportunities through existing
platform and integration of Valemus
Asia Strong fundamentals across most markets Focused on delivery of retail projects in Singapore Project management & construction – develop market leading positions in
pharmaceutical and life sciences
Americas Signs of recovery across key sectors Opportunity to leverage into market recovery and establish positions in new
sectors eg. healthcare development
Europe Early stages of recovery in residential and construction Focus on delivery of major projects and position project management &
construction business into market recovery
Key priorities for the Group
Integrate Valemus infrastructure business and deliver on earnings accretion Integration of business on track Strong infrastructure backlog
driven by Abigroup
Progress major projects
• Focus on portfolio management
• Position offshore businesses for market recovery
5
Mangoola Coal Rail Bottom Loop, NSW
Significant pipeline of opportunities
Dec 2010
Funds under management (A$b) 10.7
End development value of urban regeneration projects (A$b) 25.0
Construction backlog revenue (A$b) (including Valemus) 11.9
Retail assets under management (A$b) 9.4
Backlog of residential units 89,216
6
Our strategic direction
Our Strategic Direction:
To be the Leading International Property and Infrastructure Group
Be in the top 3 industry leaders within
our chosen market segments and sectors
Leading
Focus on 4 core regions with defined
geographies
International
Property and Infrastructure are our core sectors. We will participate in defined sub-sectors where we have core capabilities
Sectors Segments
Development Construction Investment
Management Services Ownership
8
Our segment position
9
Focused predominately on co-investments
Use capital to support fund growth
A leading development management, design & delivery capabilities
Development
Strong capabilities in project management, design and construction and new acquired capability in engineering and construction
Construction
A leading investment management platform
Strong access to capital
Investment Management
Property, asset and facilities management expertise
Services Ownership
Target risk adjusted capital
35-45%
Target risk adjusted capital
30-40%
Target risk adjusted capital
5-15%
Target risk adjusted capital
< 5%
Target risk adjusted capital
10-20%
Continued focus on key trends
Urban Regeneration Leading urban renewal projects in Australia, UK and Singapore Focus on delivery and execution
Ageing Population No. 1 senior living platform in Australia 70 retirement villages and 32 aged care facilities
Infrastructure Australia - significant opportunities from both public and private
projects Valemus acquisition provides significant capability in the Australian
engineering and infrastructure market
Sustainability Continued focus on commercialising sustainability
Fund Growth Platform Continue to service our wholesale investor base Targeted opportunities which meet investor appetite
10
Our strategic pathway
RESTORE Right Structure
Right structure Cost out Drive efficiency Capital management
Reshape portfolio
Growth platforms
Operational excellence
Invest in people
World class property and infrastructure solutions company
Strong integrated offering
Trusted investment manager
RESTOREA Focused Core Business
BUILDDisciplined Expansion
LEADOutperformance
11
Continue to focus on business transformation Capital management
Divestment of non core assets
Valemus integration Talent management
Portfolio of successful projects
Best in class execution
Key strategic deliverables – 12 to 24 months
Reshape portfolio
Growth platforms
Operational excellence
Invest in people
BUILD
12
Major Development Projects
Successful delivery and execution of secured projects
Infrastructure Successful integration of the business Establish appropriate risk framework Extract synergies
Business Transformation
Drive business performance efficiency Deliver savings
Portfolio Reallocation Realise capital of A$1–2b from completed assets
UK and US market recovery
Position to outperform in recovering markets Realise intrinsic development value in UK projects
and focus on healthcare opportunities in the US
Sector Earnings Split 1 June 2010 Actual
Geographical Earnings Split 1
Earnings split
June 2010 Actual
1. Based on Operating Profit after Tax from operating businesses
2. Based on Valemus CY09 Pro Forma Operating Profit after Tax and Lend Lease’s FY10 Operating Profit after Tax
June 2010 Proforma2
June 2010 Proforma2
Investment Management
22%
Infrastructure Development
11%
Development30%
Project Management
& Construction37%
Investment Management
28%
Infrastructure Development
14%Development38%
Project Management
& Construction20%
14
Australia66%Asia
6%
Europe22%
Americas6%
Australia57%Asia
8%
Europe28%
Americas7%
Asia business update
15
Key MetricsDec 2010
Dec 2009
Operating Profit after tax (A$m) 15.8 21.5
Construction new work secured (A$m) 412.0 156.8
Dec 2010
June 2010
Construction backlog revenue (A$m) 546.1 289.9
Funds under management (A$b) 2.0 1.6
Retail assets under management (A$b) 1.8 1.8
Investment Management
34%
Project Manage-ment &
Construction66%
Opportunities
Additional mixed use development sites coming to market in Singapore
Global client strategy in pharma and life sciences sectors
Opportunities in China and Japan Focus on global capital relationships
Outlook
Signed government tenancy for Jurong Gateway commercial and progressing retail leasing
Increasing competition for retail spend in Singapore
Strong investor demand for regional assets
Operating profit after tax for the six month period ended 31 Dec 2010
Europe business overview
Key MetricsDec 2010
Dec 2009
Profit after tax (million) 94.6 64.0
Construction new work secured (m) 764.5 540.0
Dec 2010
June 2010
Construction backlog revenue (A$m) 1,381.7 1,473.9
Number of residential units 15,196 12,425
PPP equity invested(A$m) 78.3 147.3
Infrastructure Development
62%
Investment Management
29%
Project Manage-ment &
Construction5%
Development5%
16
Opportunities
Focus on large projects (Greenwich Peninsula, Elephant & Castle, Stratford International Quarter)
Rationalise CEMEA operations Appointment of new Head of project
management & construction - Michael Dyke Athletes’ Village project on track Infrastructure Fund has undrawn capacity Focus on capital recycling opportunities
Outlook Residential in early stages of recovery –
fits well with timing of major projects Construction market conditions remain
subdued but activity levels improving
Operating profit after tax for the six month period ended 31 Dec 2010
Development - Communities
17
Operational Update
NSW/ ACT remain strong, Victoria is solid while South Australia and South East Queensland are subdued
Flood impacting sentiment in Queensland Targeting zoning on current unzoned project
backlog in FY2012
Opportunities
New projects secured – Alkimos, Toolern, Werribee, Fernbrooke
Zoning progressed – Calderwood, Yarrabilba Continue to target affordable projects and
replenish pipeline Maintain balanced portfolio
Outlook
Long term fundamentals of residential market remain solid, short term impacted by market uncertainty and consumer sentiment
Going into FY2012 – strong carry forward of contracts / commence trading on a number of new projects Varsity Lakes, Gold Coast, QLD
Key MetricsDec
2010 June 2010
Number of zoned residential land lots 38,170 31,960
Number of unzoned residential land lots 22,335 27,080
Total backlog lots 60,505 59,040
Overview of communities market
18
Quality of enquiry at Lend Lease projects improving, however conversion time has increased on back of decline in sentiment
Affordability pressures continue to be driven by interest rate rises and higher living costs
Tightening bank lending criteria resulting in lower Loan to Value Ratios
Lend Lease product mix focused on affordable end of the market
Pricing and margins across Lend Lease portfolio remain resilient
Long term fundamentals are positive with strong underlying demand and ongoing stock shortfall and supported by solid employment outlook
-50,000
0
50,000
100,000
150,000
200,000
250,000
300,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Stock Deficiency
Stock Deficiency Supply Demand
60
70
80
90
100
110
120
130
Apr-82 Mar-85 Feb-88 Jan-91 Nov-93 Oct-96 Sep-99 Aug-02 Jul-05 Jun-08
Inde
x (1
00=n
etur
al)
Consumer Sentiment IndexMonthly observations ending April 2011
CSI LR Average (101.4)
Source: Westpac-Melbourne Institute, RBA and Lend Lease Research
Source: BIS Shrapnel
Communities portfolio strategy update
19
Capital model to match size and nature of project – land management, joint ventures or direct ownership
New project acquisitions focused on replenishing existing portfolio in affordable growth corridors
Recent entry into WA market
Focus on product innovation and builder partnerships to deliver sales volume
Strong reputation in place, creation and delivery of key infrastructure to drive value and competitive advantage
Flexible business model and diverse geographic spread of projects
Mawson Lakes, SA
Lakeside Pakenham, VIC
Senior Living
20
Operational Update
FY2011 reflects first full year of 100% ownership of Primelife
Aged Care – has increased EBITDA per bed by >35% since acquisition
Opportunities
Recycle capital and introduce capital partners Increase development pipeline Standardise retirement contracts across the
portfolio for simplification and efficiency benefits
Outlook
Long term dynamics of senior living sector remain positive – supported by an ageing population, undersupply of stock and government focus on senior housing
Penetration in Australia remains low relative to overseas markets
Key MetricsDec 2010
June 2010
Number of retirement villages 70 70
Number of retirement units 12,416 12,357
Number of aged care facilities 32 32
Number of aged care beds 2,372 2,370
Aged care occupancy (%) 94.4 94.5
Development pipeline – number of retirement units 1,255 1,310
Woodlands Park, Berwick VIC
Investment Management
MidCity Centre, Sydney, NSW
21
Operational Update
FUM growth of over 15% per annum over last 5 years – strong growth expected to continue
Continued strong performance across key funds Integration of ING Retail Fund assets complete
Opportunities
Internal development pipeline to support strong growth outlook
Focus on capital recycling opportunities across the Group
Diversify investor base and scale up retail platform
Grow separate mandates business
Outlook
Investors seeking alignment with asset creators and best in breed managers
Lend Lease seen as attractive partner with strong track record, governance framework and end to end property skills
Retail sales environment remains flat
Key MetricsDec 2010
Dec 2009
Operating profit after Tax (A$m) 17.2 11.9
Dec 2010
A$
June 2010
A$Funds under management (A$b) 7.6 7.1
Market value of investments (A$b) 0.3 0.3
Retails assets under management 15 15
Key priorities
Grow construction backlog Focus on health pipeline and convert internal
opportunities Leverage multi-sites/ capital services platform
Deliver key development projects Achieve key planning outcomes, secure
tenants and capital partners Replenish communities backlog in key
affordable markets Continue to drive operational excellence
across senior living platform Simplify operating model in preparation for
capital recycling Continue to grow funds under management
Strong performance in existing funds is key
22
Key priorities for the Group
Integrate Valemus infrastructure business and deliver on earnings accretion
Focus on execution and delivery of major projects
Ongoing portfolio management
• Position offshore businesses for market recovery
24
Darling Quarter, Sydney, NSW
Positive outlook
Significant backlog, development pipeline and access to capital Continued deal momentum Capital invested is supported by third party equity Focus on capital recycling Emphasis on quality and consistency of execution
Strong long term outlook with positive EPS trend Expect accretion from Valemus deal Strong 1st half result positions the Group well for the full year Key projects expected to begin to deliver returns from 2nd half of financial year 2012
25