Lendlease Group · ASX:LLC
Lendlease — Non-Deal Roadshow (September 2000)
125 slides from Lendlease's roadshow presentation, Sep 5, 2000
Slide 1: Lend Lease Roadshow
Lend Lease Roadshow 5 September 2000
Slide 2: Meeting Agenda
Meeting Agenda Introduction Integrated Real Estate Why Merge? BP Amoco Alliance Resulting Global Business Bovis Lend Lease Americas Vision and Core Values Bovis Lend Lease Europe Financial Review e-Business The Way Ahead Closing Remarks
Slide 3: Best at Building, Better at Business
BEST AT BUILDING BETTER AT BUSINESS: THE DIFFERENCE CREATES VALUE
Slide 4: Why Merge?
—— bovis Why Merge? 1+1=5
Slide 5: Lend Lease Projects
Lend Lease Projects Coke, India Fairfax Printing Plant, Sydney, Australia Olympic Village, Sydney, Australia
Slide 6: Lend Lease Projects
Lend Lease Projects Brisbane Airport, Brisbane, Australia Bluewater, Kent, UK Lucent Technologies, Noosa Treatment Plant, Queensland, Bourke Place, Melbourne, Hong Kong Australia Australia
Slide 7: Lend Lease Projects Key Strengths
Lend Lease Projects Key Strengths Analysis of Business Mix Aligned to key market sectors Strong market position (brand) Fee Services in Asia Pacific 10% Lend Lease sponsored dealflow Knowledge based service provider 90% Integrator, risk manager and Guaranteed value adder Maximum Price
Slide 8: Lend Lease Projects Sector Focus
Lend Lease Projects Sector Focus Commercial/Office 17% Aviation 17% Industrial 13% Retail 11% Residential/Senior Living 10% Interiors/Refurbishments 7% Semiconductors 6% General 3% Healthcare 3% Infrastructure 3% Government/Civic 3% Education 2% Mixed Use 2% Sport/Leisure/Culture 1% Pharmaceutical/R
Slide 9: Bovis Company History
Bovis Company History 1885 Company founded in London 1920s Pioneered non-adversarial Bovis fee system 1974 P&O acquires Bovis 1986 Bovis enters US market 1988 Bovis enters Asia Pacific market 1995 Bovis enters Australian market 1999 Acquisition of Tanvec (pharmaceutical) in the UK and W.R. Adams (he
Slide 10: Bovis
Bovis At any one time, Bovis had over 1000 active projects around the world, managed by 3 divisions spanning: – Europe, the Middle East, Africa and India – The Americas – Asia, Japan and Australia Operations in over 80 cities and 38 countries
Slide 11: Bovis Projects
Bovis Projects Canary Wharf, London, UK Petronas Towers, Kuala Lumpur, Malaysia Statue of Liberty, New York, USA Sapporo Dome, Hokkaido, Japan 1996 Olympic Games, Trafford Centre, Atlanta, USA Manchester, UK
Slide 12: Bovis Sector Projects
Bovis Sector Projects Leisure, Industrial, Terra Mitica, Mitica, Spain The Lowry, Salford Office, Garanti Bank, Istanbul Turkey Health Care, Pharmaceutical, Merck & Co., Residential, Columbia HCA, Various Locations West Point, PA & Rahway, NJ Trump World Tower, New York, NY
Slide 13: Bovis Key Strengths
Bovis Key Strengths Non-adversarial, client Analysis of Business Mix focused company Knowledge-based service Fee Services provider 56.7% 43.3% Established brand name Long term clients and global Guaranteed alliances Maximum Price Stable, balanced income Gross Profit Margin stream
Slide 14: Bovis Sector Focus
Bovis Sector Focus Commercial/Office/Mixed Use 19% General Retail/Refurb. 13% General 11% Residential/Senior Living 9% Retail - Major Shopping Centers 9% Transportation 8% Education 7% Hotel 6% Healthcare 6% Sport/Leisure/Culture 4% Government/Civic 3% Pharmaceutical/R&D 3% Industrial 2%
Slide 15: Major Clients
MILLENNIUM PARTNERS *" UNITED TIME WARNER Cisco Systems THE Ty GENERATION™
Slide 16: Rationale for Acquisition
Rationale for Acquisition Truly global business, a world leader, operates in over 40 countries – No. 1 in UK management construction – Ranked No. 1 construction manager and No. 2 general contractor in Americas Complementary strengths and locations Similar cultures. Organizations have worked well tog
Slide 17: Benefits of Combining Bovis and Lend Lease Projects
Benefits of Combining Bovis and Lend Lease Projects Advances Integrated Global Real Estate Group strategy significantly Balances the employee distribution globally - Asia Pacific 2,100 - Americas 2,300 - Europe 2,600 Provides infrastructure to support Lend Lease Real Estate globally Instant global b
Slide 18: 2000 ENR Top International Contractors
2000 ENR Top 225 International Contractors RANK FIRM 1 Bechtel Group Inc., San Francisco, Calif., U.S.A. 2 Kvaerner PLC Group, London, U.K. 3 Skanska AB, Stockholm, Sweden 4 Bouygues, Guyancourt, France 5 Kellogg Brown & Root, Houston, Texas, U.S.A. 6 Fluor Corp., Aliso Viejo, Calif., U.S.A. 7 Hocht
Slide 19: Where We Are
Where We Are >, (>> ies agse® _ ) ugtedSrateoo © seante oO. A oe Austratka oe
Slide 20: Scale of Business: Staff by Region
Scale of Business Staff Number by Region TOTAL Americas Europe Asia Pacific 2300 2600 2100
Slide 21: Scale of Business: Backlog by Region
Scale of Business Backlog by Region TOTAL A$ Americas Europe Asia Pacific 181 231 70
Slide 22: Fee Service Contracts
Fee Service Contracts Consulting Alliances Project/Program management Construction management Management contracting Safety and environment
Slide 23: Construction Services Contracts
Construction Services Contracts Guaranteed Maximum Price (“GMP”) - 2 Stage Lump sum Design/Build BOT and PFI contracts
Slide 24: Organization Chart
Organization Chart David Higgins Lend Lease Global CEO Sir Frank Lampl President Luther Cochrane Chairman Ross Taylor Global CEO John McCloy Ross Johnston John Spanswick Bob Johnston Bill Moss John Nesbitt BP Alliance President, MD, Europe CEO, Asia Pacific CEO, Americas Global CFO Global Markets
Slide 25: Centers of Expertise
Centers of Expertise • Alliances • Aviation • BOT/PFI • Cultural • Entertainment • Healthcare • Hotel • Judicial • Offices • Pharmaceutical • Microelectronics • Retail • Education • Industrial • Residential/ Senior Living • Sports • Surface Transportation • Telecommunications • Theme Parks Sharing K
Slide 26: Solid Long Term Contract Base
Solid Long Term Contract Base Long term contracts provide stable income streams and are largely won on credentials and strength, not price Of the assignments that produce the backlog roughly half are long term (more than 30 months) contracts That percentage is increasing consistently with strategy
Slide 27: Very Real Differences
Very Real Differences Truly global and local organization Specialized, knowledge based services Stable, balanced income Relationship orientation Integrated offering, including implementation Focused on value for clients and shareholders
Slide 28: Vision and Core Values
—— Bovis Vision and Core Values
Slide 29: Bovis Culture
Bovis Culture The importance of culture to our history Bovis pre 1985 Bovis post 1985 Views on Lend Lease culture The importance of culture to today’s business
Slide 30: Lend Lease Culture
Lend Lease Culture Energy, drive and a sense of urgency Challenging, inquisitive minds Positive view of change Blue sky - aim high Planning emphasis
Slide 31: The leading global provider of integrated solutions
The leading global provider of integrated, creative solutions for our clients’ property and assets. EAMWORK
Slide 32: Financials
—— Bovis Financials
Slide 33: Globally We're in Great Shape
Globally We’re in Great Shape Profit (after tax) A$56M Profit Backlog A$482M Cash in Bank A$527M Revenues A$6.5B
Slide 34: Operating Profit After Tax
Operating Profit After Tax June 2000 A$M Including Reported interest on surplus working capital Asia Pacific 38 47 Americas 11 14 Europe 7 10 56 71
Slide 35: Bovis = Globalisation + Diversification
Bovis = Globalisation + Diversification % Revenue Bovis LL1 Pre-existing business2 Asia Pacific 24 99 Americas 50 - Europe 26 1 100% 100% 1 Annualises 8 months Bovis contribution 2 1999 revenues
Slide 36: Gross Profit Margin by Market Sector
Gross Profit Margin by Market Sector Transportation Sport/leisure/Culture Infrastructure Hotel 2% 2% 2% Mixed Use 2% Commercial/Office 3% 20% Government/Civic Semiconductors 3% 3% Education 3% General 5% Retail Healthcare 17% 6% Pharmaceutical/R&D 7% Industrial Residential/Senior 8% Aviation Living
Slide 37: Diversification
Diversification % of June 2000 Profit Margin Top 10 Clients 37% Top 20 Clients 46% Largest 10%
Slide 38: Gross Margin by Contract Type
Gross Margin by Contract Type Fee Service Construction Contracts Services Total 30 June 2000 % % % Asia Pacific 7% 38% 45% Americas 14% 10% 24% Europe 23% 8% 31% Total 44% 56% 100%
Slide 39: Backlog
Backlog Backlog Profit Margin June 2000 A$M Asia Pacific 70 Americas 181 Europe 231 482 A$B Backlog Revenue 7.8
Slide 40: 4 Year Plan
—— Bovis 4 Year Plan
Slide 41: Present State
Present State Globally - have continued to win work Backlog A$482M In spite of the integration focus we have powered on!!! Even more prestigious assignments are coming our way Repeat client percentage continues to climb Number of long term contracts increasing
Slide 42: 4 Year Growth
Grow the Established Business Clients & Build the Alliances Growing Regions Base Business Global Sectors 4 Year Growth Integrated Real Estate e-business ◆ Consulting ◆ Platform ◆ PFI/BOT ◆ New Way
Slide 43: Global Services
Global Services Fee Construction Alliances Integrated RE Services Services Consultancy Design Manage Gain Share Private Finance & Construct Agreements Initiative (PFI) Management Contracting Guaranteed Outsourcing Build Operate Maximum Price Transfer (BOT) Construction Management 2 Stage lump Urban
Slide 44: Our Work Profile is Critical
Our Work Profile is Critical 25% PFI / Integrated 25% Client Alliance 25% 13% 16% Construction Services 35% Fee Services 25% 36% NOW 2004
Slide 45: Our Goals This Year
Our Goals This Year Profit After Tax Growth Cash Management Maximized Profit Backlog Growth Focus on profit profile Integrated Real Estate Solutions New major client Alliances New sectors successfully established e-business engaged Focus on knowledge sharing Lead in safety Embed Vision and Values
Slide 46: Foundations
Foundations Uniquely Best Skills Integrity Positioned Best People Common Vision Customer Focus Global/Local Strong Brand Balanced Hummingbird Project Web Scorecard System
Slide 47: Integrated Real Estate Solutions
Integrated Real Estate Solutions
Slide 48: Integrated Real Estate Applied to the Process of Asset Creation
Integrated Real Estate Applied to the Process of Asset Creation Strategy Feasibility Plan and Finance Design Construct Maintain Manage/ Concept Operate Lend Lend Lease Lease Actus Actus PFI PFI // BOT BOT Lend Lend Lease Lease Integrated Integrated Real Real Estate Estate Solutions Solutions Get to
Slide 49: Integrated Group Model
Integrated Group Model Lend Lease Integrated w De Real Estate flo al SOLUTIONS al flo De w •PFI •LL Actus •BOT Bovis Lend Lease Lend Lease REI Project Management Financing and Implementation Cross selling collaboration service opportunities Limited disciplined offerings Cherry pick the best opportun
Slide 50: PFI/BOT Concept
PFI/BOT Concept Total cost security New solutions Entrepreneurial approach Life cycle economies Off balance sheet treatment Cost of capital
Slide 51: PFI/BOT Projects
PFI/BOT Projects New Category of Funds Under Management Current project positions exceed A$1.3B Minimal equity requirements Long term positions Partnering with key players/clients Multiple service deliveries Multiple income streams Control of entire process
Slide 52: PFI/BOT Projects: Current Project Positions
PFI/BOT Projects Current Project Positions Completed Value Project Type Country Status A$ Da Chang Water China Completed 130 Calderdale Hospital UK In Construction 190 Worcester Hospital UK In Construction 205 Treasury Building Office UK In Construction 280 Hexham Hospital UK Preferred 60 Fort Hood
Slide 53: The Future
The Future Sector focus Private PFIs – Telecom facilities The pipeline
Slide 54: PFI/BOT Lend Lease Actus/Military Housing
PFI/BOT Lend Lease Actus/Military Housing For 20 years Actus has been a key provider of construction services to the military 60 military housing projects, more than 13,000 units, over A$2.5B Milcon core business, project size A$5M to A$120M 75% controlled joint venture established September 1999 Ai
Slide 55: Military Housing Program
PFI/BOT Lend Lease Actus/Military Housing Military Housing Program Army, Navy/Marines, Airforce Privatization of housing on military bases in USA A$30B program, 300,000 housing units/ 60% need repairs Housing is a major reason for loss of servicemen and woman
Slide 56: Fort Hood Example
PFI/BOT Lend Lease Actus/Fort Hood Example Largest US military installation 1/3 of Army manpower and hardware Army base comprising 214,000 acres at Killeen, Texas 42,000 military personnel + families + civilians 5922 sets of family quarters Dates back to 1940’s
Slide 57: Fort Hood Example: Project Requirements
PFI/BOT Lend Lease Actus/Fort Hood Example Project Requirements 840 units to be replaced and 4,240 renovated 18 month waiting list 98% occupancy Partnership relationship with Army Only minor equity from LL Actus 50 year development budget over A$3B Initial project budget over A$440M
Slide 58: Fort Hood Example: Our Responsibility
PFI/BOT Lend Lease Actus/Fort Hood Example Our Responsibility Client/program manager Development manager Design and construction (Bovis Lend Lease) Arrange finance (debt and equity - Lend Lease Real Estate Investments) Asset manager (Lend Lease Apartments) Property repair and maintenance (All Star)
Slide 59: BP Amoco Alliance
a bovis BP Amoco Alliance
Slide 60: BP/BLL Alliance Scope BP Retail
BP/BLL Alliance Scope BP Retail United States Scope of Work • Mid Continent [Chicago] • Zoning [US Only] • South East [Atlanta] • Permitting • Atlantic [Baltimore] • Design • Mid West [Cleveland] • Procurement • Construction • Maintenance [Europe Only] Europe &Other • Germany, Austria, Switzerland •
Slide 61: BP/BLL Alliance Scope: Framework
BP/BLL Alliance Scope BP Retail Framework Chronology • One Global Agreement • 1997 Five-Year Agreement • Local Service • 2000 Expanded to include US Agreements and extended for another five years Key Features • Partnership Agreement Remuneration • Agency - For and on behalf • Cost Recovery + Base of
Slide 62: BP/BLL Alliance Organisation
BP/BLL Alliance Organisation Alliance Director Core Core Operations Director Operations Director Team Team Shared Functions EUROPE & OTHER UNITED STATES Alliance BU Managers Alliance BU Managers GAS, FAB, UK, IB, Mid Continent, Atlantic, E MED. Poland, Japan Mid West, South East. Peer Group Groups m
Slide 63: BP/BLL Alliance Governance
BP/BLL Alliance Governance BP ALLIANCE BOARD BLL ALLIANCE OPERATING BP GROUP BLL [United States] ALLIANCE OPERATING BP GROUP BLL [Europe & Other] ALLIANCE BOARD Strategy: Policy: Partnership Matters: Development of Alliance ALLIANCE OPERATING GROUP Performance Review: Assurance: Issues: Audit.
Slide 64: BP/BLL Alliance Possible Expansion
BP/BLL Alliance Possible Expansion Imaging in US Geographic Expansion Other BP Divisions Asset/Funding Initiatives Increased Capital Spend
Slide 65: Americas
—— Bovis Americas
Slide 66: Americas
Americas Seattle Albany Boston Buffalo Ithaca Hartford Chicago New York Philadelphia Princeton Columbus Indianapolis Washington San Francisco Omaha Denver Richmond Kansas City Raleigh Charlotte Nashville Columbia Charleston Los Angeles Atlanta Dallas Orlando Miami Sao Paulo Buenos Aires
Slide 67: Business Scale
Business Scale Revenue of A$2.9B for 8 months ending June 2000 Profit After Tax of A$18.4M for 8 months ending June 2000, after excluding integration and other new business establishment costs Backlog gross profit margin A$181M 2,300 Staff in 4 countries in 31cities 420 Projects in progress across t
Slide 68: Repeat Business
Repeat Business 75% of gross profit comes from repeat clients
Slide 69: Key Americas Clients
Key Americas Clients Ace Insurance SJPPROPERTIES
Slide 70: Entering 2000/2001 After Excellent Performance in 1999/2000
Entering 2000/2001 After Excellent Performance in 1999/2000 Exceeded profit and fee sales goals Largest backlog in history
Slide 71: Future Business Strategy
Future Business Strategy Integration Profit improvement Synergies and services New industries and asset customers
Slide 72: Targets for Growth
Targets for Growth South America/West Coast Design and Build Military Housing Pharmaceuticals Microelectronics Telecommunications Healthcare Integrated Real Estate solutions
Slide 73: Gross Profit Margin A$M
Gross Profit Margin A$M Aviation Industrial/Warehouse 1% 3% Residential/Senior Sport/leisure/culture Retail Living 4% 3% 17% Hotel 5% Govt/civic/judicial 6% Healthcare Pharmaceutical/R&D 15% 7% Education 8% Commercial/Office Mixed Use 12% 9% General 10%
Slide 74: Industry Rankings
Industry Rankings Building Design & Construction (July 2000 ) - “Who’s Who In The Design and Construction Industry” Bovis Lend Lease Construction Manager - Ranked 1st General Contractor - Ranked 2nd Modern Healthcare (March 13, 2000 ) - “Construction & Design Survey” Bovis Lend Lease Construction Ma
Slide 75: Industry Awards
Industry Awards 42nd Street Development - 2000 Project of the Year, New York, New York Construction Managers Association of America Grand Central Station - Presidential Design Awards 2000 Award for Historic Preservation, New York, New York National Endowment of the Arts/General Services Administrati
Slide 76: Europe
Europe
Slide 77: Europe
Europe Tel Aviv Kuwait Glasgow Belfast Edinburgh Moscow Dublin Manchester Cork Birmingham London Rotterdam Hamburg Bristol Eindhoven Elstead Warsaw Brussels Dusseldorf Frankfurt Krakow Prague Paris Munich Brno Bratislava Zurich Vienna Budapest Johannesburg Bucharest Lisbon Milan Madrid Istanbul Athe
Slide 78: Business Scale
Business Scale Revenue of A$1.5B for 8 months ending June 2000 Profit After Tax of A$11.3M for 8 months ending June 2000, after excluding integration and other new business establishment costs Backlog gross profit margin A$231M 2,600 Staff in 20 countries 660 Projects in progress across the region M
Slide 79: Repeat Business
Repeat Business 77% of gross profit comes from repeat clients
Slide 80: Key UK Clients
Key UK Clients STANHOPE RAILTRACK Peel Holdings PLC Chelsfield plc
Slide 81: Key European Clients
Level(>) . SmithKline Beecham Gi APPLIED MATERIALS* H S B C <yp
Slide 82: Future Business Strategy
Future Business Strategy Growth economies
Slide 83: Growth Economies
Relative Relative construction construction Growth Economies market market size size A$B A$B 0 - 100 100 - 200 Czech Republic Poland 200+ Spain UK Italy France Germany 0% 100% Indicative share of BLLE workload
Slide 84: Future Business Strategy
Future Business Strategy Growth economies Balanced portfolio – Integrated Real Estate solutions – Create new alliances
Slide 85: Future Business Strategy
Future Business Strategy Growth economies Balanced Portfolio – Integrated Real Estate solutions – Create new alliances Target sectors for growth
Slide 86: Target Sectors for Growth
Target Sectors for Growth Pharmaceutical Telecommunications Aviation Privatization (PFI)
Slide 87: Industry Awards
Industry Awards Building Magazine - Project/construction Manager of the Year, Bovis Lend Lease Construction News - Quality in Construction Awards - Major Project of the Year, Bluewater, Dartford, Kent Royal Society for the Prevention of Accidents (RoSPA) - Occupational Safety Training Award for 1999
Slide 88: Europe
Europe Record Backlog Diverse sectors Geographical strength across Europe Growing list of preferred clients Improved margins available for adding values
Slide 89: BP Amoco Alliance
a bovis BP Amoco Alliance
Slide 90: BP/BLL Alliance Scope BP Retail
BP/BLL Alliance Scope BP Retail United States Scope of Work • Mid Continent [Chicago] • Zoning [US Only] • South East [Atlanta] • Permitting • Atlantic [Baltimore] • Design • Mid West [Cleveland] • Procurement • Construction • Maintenance [Europe Only] Europe &Other • Germany, Austria, Switzerland •
Slide 91: BP/BLL Alliance Scope: Framework
BP/BLL Alliance Scope BP Retail Framework Chronology • One Global Agreement • 1997 Five-Year Agreement • Local Service • 2000 Expanded to include US Agreements and extended for another five years Key Features • Partnership Agreement Remuneration • Agency - For and on behalf • Cost Recovery + Base of
Slide 92: BP/BLL Alliance Organisation
BP/BLL Alliance Organisation Alliance Director Core Core Operations Director Operations Director Team Team Shared Functions EUROPE & OTHER UNITED STATES Alliance BU Managers Alliance BU Managers GAS, FAB, UK, IB, Mid Continent, Atlantic, E MED. Poland, Japan Mid West, South East. Peer Group Groups m
Slide 93: BP/BLL Alliance Governance
BP/BLL Alliance Governance BP ALLIANCE BOARD BLL ALLIANCE OPERATING BP GROUP BLL [United States] ALLIANCE OPERATING BP GROUP BLL [Europe & Other] ALLIANCE BOARD Strategy: Policy: Partnership Matters: Development of Alliance ALLIANCE OPERATING GROUP Performance Review: Assurance: Issues: Audit.
Slide 94: BP/BLL Alliance Possible Expansion
BP/BLL Alliance Possible Expansion Imaging in US Geographic Expansion Other BP Divisions Asset/Funding Initiatives Increased Capital Spend
Slide 95: Americas
—— Bovis Americas
Slide 96: Americas
Americas Seattle Albany Boston Buffalo Ithaca Hartford Chicago New York Philadelphia Princeton Columbus Indianapolis Washington San Francisco Omaha Denver Richmond Kansas City Raleigh Charlotte Nashville Columbia Charleston Los Angeles Atlanta Dallas Orlando Miami Sao Paulo Buenos Aires
Slide 97: Business Scale
Business Scale Revenue of A$2.9B for 8 months ending June 2000 Profit After Tax of A$18.4M for 8 months ending June 2000, after excluding integration and other new business establishment costs Backlog gross profit margin A$181M 2,300 Staff in 4 countries in 31cities 420 Projects in progress across t
Slide 98: Repeat Business
Repeat Business 75% of gross profit comes from repeat clients
Slide 99: Key Americas Clients
Key Americas Clients Ace Insurance SJPPROPERTIES
Slide 100: Entering 2000/2001 After Excellent Performance in 1999/2000
Entering 2000/2001 After Excellent Performance in 1999/2000 Exceeded profit and fee sales goals Largest backlog in history
Slide 101: Future Business Strategy
Future Business Strategy Integration Profit improvement Synergies and services New industries and asset customers
Slide 102: Targets for Growth
Targets for Growth South America/West Coast Design and Build Military Housing Pharmaceuticals Microelectronics Telecommunications Healthcare Integrated Real Estate solutions
Slide 103: Gross Profit Margin A$M
Gross Profit Margin A$M Aviation Industrial/Warehouse 1% 3% Residential/Senior Sport/leisure/culture Retail Living 4% 3% 17% Hotel 5% Govt/civic/judicial 6% Healthcare Pharmaceutical/R&D 15% 7% Education 8% Commercial/Office Mixed Use 12% 9% General 10%
Slide 104: Industry Rankings
Industry Rankings Building Design & Construction (July 2000 ) - “Who’s Who In The Design and Construction Industry” Bovis Lend Lease Construction Manager - Ranked 1st General Contractor - Ranked 2nd Modern Healthcare (March 13, 2000 ) - “Construction & Design Survey” Bovis Lend Lease Construction Ma
Slide 105: Industry Awards
Industry Awards 42nd Street Development - 2000 Project of the Year, New York, New York Construction Managers Association of America Grand Central Station - Presidential Design Awards 2000 Award for Historic Preservation, New York, New York National Endowment of the Arts/General Services Administrati
Slide 106: Europe
Europe
Slide 107: Europe
Europe Tel Aviv Kuwait Glasgow Belfast Edinburgh Moscow Dublin Manchester Cork Birmingham London Rotterdam Hamburg Bristol Eindhoven Elstead Warsaw Brussels Dusseldorf Frankfurt Krakow Prague Paris Munich Brno Bratislava Zurich Vienna Budapest Johannesburg Bucharest Lisbon Milan Madrid Istanbul Athe
Slide 108: Business Scale
Business Scale Revenue of A$1.5B for 8 months ending June 2000 Profit After Tax of A$11.3M for 8 months ending June 2000, after excluding integration and other new business establishment costs Backlog gross profit margin A$231M 2,600 Staff in 20 countries 660 Projects in progress across the region M
Slide 109: Repeat Business
Repeat Business 77% of gross profit comes from repeat clients
Slide 110: Key UK Clients
Key UK Clients STANHOPE RAILTRACK Peel Holdings PLC Chelsfield plc
Slide 111: Key European Clients
Level(>) . SmithKline Beecham Gi APPLIED MATERIALS* H S B C <yp
Slide 112: Future Business Strategy
Future Business Strategy Growth economies
Slide 113: Growth Economies
Relative Relative construction construction Growth Economies market market size size A$B A$B 0 - 100 100 - 200 Czech Republic Poland 200+ Spain UK Italy France Germany 0% 100% Indicative share of BLLE workload
Slide 114: Future Business Strategy
Future Business Strategy Growth economies Balanced portfolio – Integrated Real Estate solutions – Create new alliances
Slide 115: Future Business Strategy
Future Business Strategy Growth economies Balanced Portfolio – Integrated Real Estate solutions – Create new alliances Target sectors for growth
Slide 116: Target Sectors for Growth
Target Sectors for Growth Pharmaceutical Telecommunications Aviation Privatization (PFI)
Slide 117: Industry Awards
Industry Awards Building Magazine - Project/construction Manager of the Year, Bovis Lend Lease Construction News - Quality in Construction Awards - Major Project of the Year, Bluewater, Dartford, Kent Royal Society for the Prevention of Accidents (RoSPA) - Occupational Safety Training Award for 1999
Slide 118: Europe
Europe Record Backlog Diverse sectors Geographical strength across Europe Growing list of preferred clients Improved margins available for adding values
Slide 119: eBusiness
eBusiness
Slide 120: Our Vision
Our Vision Project Managers Construction Managers Trade Subcontractors Designers Suppliers $ Quantity Surveyors Specialists Distributors Main Contractors Labour 20% of Cost 80% of Cost Five to Ten Years Five to Ten Years On line purchases Commodity products e-procured Supply chain altered and distri
Slide 121: Evolution of the Platforms
Evolution of the Platforms Now Starting 1-2 Years 3-5 Years Communication Commerce Applications Virtual •Collaborations •Eprocurement •Enterprise •Virtual Design Management •Development/ •Knowledge •Intelligent document directories •CAD links/Integration transfer •Estimating Tools •Design Tools
Slide 122: We want to achieve two things
We want to achieve two things Ensure Bovis Lend Lease has the behaviours,systems and processes that allow it to maintain and increase it’s competitive position Play a leading role in the industry platform that will change the industry
Slide 123: Closing Remarks
Closing Remarks
Slide 124: Bovis Lend Lease is Different
Bovis Lend Lease is Different BLL is a specialized, knowledge based, relationship oriented service provider Global and local Balanced Stable, long term relationships and income streams Change creates opportunity Key part of the Lend Lease integrated service offering The differences create value for
Slide 125: Q&A
Q&A