14 September 2015 Lend Lease presentation at CLSA Hong Kong Investors - PDF document

14 September 2015 Lend Lease presentation at CLSA Hong Kong Investors’ Forum 14 September 2015 Attached is the presentation given by Lend Lease Group Chief Executive Officer and Managing Director, Steve McCann at today’s CLSA Hong Kong Investors’ Forum . ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: Investors: Media: Suzanne Evans Nadeena Whitby Tel: 02 9236 6464 Tel: 02 9236 6865 Mob: 0407 165 254 Mob: 0467 773 032 Lend Lease Corporation Limited ABN 32 000 226 228 and Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595 Level 4, 30 The Bond Telephone +61 2 9236 6111 30 Hickson Road, Millers Point Facsimile +61 2 9252 2192 NSW 2000 Australia lendlease.com

Global Mega-trends Urbanisation a key driver of growth Steve McCann Group CEO and Managing Director Lend Lease

2 URBANISATION A KEY DRIVER OF GROWTH We operate in four regions across 12 countries LONDON Operating since 1991 NEW YORK Operating since 1979 Our operations are centred around four regions. SINGAPORE AUSTRALIA Operating since 1973 ASIA AMERICAS SYDNEY Operating EUROPE since 1958

3 URBANISATION A KEY DRIVER OF GROWTH Following successful execution of our 5 year ‘Restore Build Lead’ strategy we have moved to a new framework ‘Focus & Grow’ Lead 2015+ Restore Build Key Metrics (2009 – 2011) (2012 – 2013) Safety LTIFR 3.1 to 2.9 LTIFR 2.7 to 2.3 LTIFR 2.2 Restructuring and Reshaping and Leading positions and a Focus cost out growing the portfolio leading safety culture Profit after tax $(669)m to $493m $501m to $549m $619m Geographies Circa 40 countries 12 countries Major gateway cities Development $25.6bn $37.4bn $44.9bn Pipeline Construction $12.3bn $16.2bn $17.3bn Backlog FUM $9.9bn $15.0bn $21.3bn

4 URBANISATION A KEY DRIVER OF GROWTH Six mega-trends driving the markets in which Lend Lease operates

URBANISATION A KEY DRIVER OF GROWTH 5 Urban regeneration a key part of our ‘Focus & Grow’ strategy Urban regeneration projects comprise approximately 70% of Lend Lease’s $44.9 billion development pipeline

6 Characteristics of major urbanisation projects Scale – estimated end 1. development value >$1bn Location – city and city fringe, 2. typically government owned land Mixed-use – residential, retail, 3. commercial, infrastructure and place making Density – medium to high 4. density development Timeframe – long-dated 5. development typically with staged land payments Sustainability – deliver 6. economic, social and environmental outcomes and create a legacy

7 URBANISATION A KEY DRIVER OF GROWTH Growing and geographically diversified portfolio of urban regeneration projects 50 $44.9 100% of estimated project remaining end development value FY15 Urbanisation billion Developments by region 45 $37.2 $37.4 $37.7 40 billion billion billion $34.7 billion 35 $32.8 30 billion 25 ($ billion) 20 15 Australia Asia Europe Americas 10 5 0 2011 2012 2013 2014 2015 Communities Developments Australian Urbanisation Developments International Urbanisation Developments

8 URBANISATION A KEY DRIVER OF GROWTH Portfolio of major urban regeneration projects Project End value 1 FY15 FY16 FY17 FY18+ Integrated development projects     Barangaroo South, Sydney A$6.9 billion Darling Harbour Live, Sydney – Darling Square & ICC Hotel Sydney     A$1.9 billion     Victoria Harbour, Melbourne A$5.5 billion    Melbourne Quarter, Melbourne A$1.9 billion     Brisbane Showgrounds, Brisbane A$2.3 billion Waterbank, Perth A$1.2 billion A$2.8 billion Tun Razak Exchange, Kuala Lumpur    Paya Lebar Central, Singapore A$3.0 billion ₤2.0 billion     Elephant & Castle, London ₤0.4 billion The Wharves, Deptford, London ₤2.3 billion     The International Quarter, London US$1.5 billion River South, Chicago 1 Reflects 100% of the estimated total project end development value  Expected earnings contribution Values for any project can vary as planning approvals are obtained In planning Active project

9 URBANISATION A KEY DRIVER OF GROWTH Barangaroo Concrete Apron Created in 1970s to accommodate bulk offloading for shipping containers Closed in 2003, renamed Barangaroo in 2006 and Lend Lease selected as master developer in 2009

10 URBANISATION A KEY DRIVER OF GROWTH Barangaroo 490,000 sqm Up to 90 new retail outlets Gross Floor Area New headland park and recreated foreshore with 6,600 sandstone blocks Australia’s first large scale 7.7 Hectares Carbon Neutral community Mixed Use Development

11 URBANISATION A KEY DRIVER OF GROWTH Urbanisation delivering multiple income streams Construction Property Funds under Pre sold Backlog Revenue Development management apartment revenue ($bn) Urbanisation ($bn) 35 25 25 ($bn) 5 Pipeline ($bn) 30 20 20 4 25 15 15 3 20 15 10 10 2 10 5 5 1 5 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 0 0 0 0 Apartment Pre sales Construction Property Development Investment Management In the last 3 years Lend Lease With core skills in building, Urbanisation projects now make The creation of new investment up circa 70% of Lend Lease’s has pre sold over 5,000 engineering and services we vehicles associated with assets apartments that will settle have the internal delivery $44.9 billion development on major urbanisation sites has between FY16 and FY19. The capability to deliver major pipeline globally. driven growth in funds under vast majority of apartments are urbanisation projects. management and increased the on major urbanisation projects. At 30 June 2015 there were 12 portion of stable fee income for At 30 June 2015, major urban major urban regeneration Lend Lease. At 30 June 2015, residential pre regeneration comprised circa projects. sold revenue associated with 16% of our $17.3 billion backlog Lend Lease is a global leader – apartments totalled $4.7 billion. revenue position. having raised circa $5 billion of new equity between 2009 and 2014.

12 URBANISATION A KEY DRIVER OF GROWTH Future focus on target international gateway cities – disciplined capital allocation approach focused on local capabilities/knowledge & cycle Region Target gateway Key Economic and Cycle Drivers Lend Lease Position cities • Larger economy than Australia Capital • New York Largest metro area by population in US, highly dense (esp. Manhattan) • Major cross-border capital target • Operating since 1979 • Third largest metropolitan economy in the US • Delivered construction services on more than 4,800 • Minimal scope to expand city boundaries (support for urban projects across the Americas over the last 25 years Chicago Americas regeneration) including the National September 911 Memorial • Consistently exhibits relatively high residential affordability • A leading high rise residential builder and managing • Ninth largest metro economy in US and high disposable income per contractor in the United States capita. Boston • Major focus on higher education and also a hub for healthcare/life sciences Capability • Operating since 1991 • Global leader for attracting international capital • • Completed over 250 UK education projects Economic growth supported by size of Services sector (>90% of Europe London economy) and robust tourist demand • Delivered the 2012 Olympic Athletes’ Village • Major international financial services centre • Developed Bluewater Shopping Centre • • Operating since 1973 Fast turnaround (vs. major cities) for planning approvals • Singapore Strong population density and (expected) new household formation • Notable projects in Singapore include • Regional financial centre for Asia (with Hong Kong) 313@Somerset, JEM and Parkway Parade Cycle • Operating since 1979 Asia • High income per capita cf. country average (versus other major cities) • Delivered more than 100 projects across a broad • Despite recent economic turbulence and lower oil prices, Kuala Lumpur Kuala range of sectors in Malaysia is expected to outperform most major cities Lumpur • Notable projects in Malaysia include the iconic • Tenth Malaysian Plan (2011) outlined strategy for significant growth of Petronas Twin Towers, Setia City Mall and Pinewood Kuala Lumpur Iskandar Malaysia Studios

13 Urbanisation: a key driver of future growth for Lend Lease