Lendlease Group · ASX:LLC
Lendlease — Investor Presentation (2004)
33 slides from Lendlease's investor presentation, 2004
Slide 1: 1
1
Slide 2: Delfin Lend Lease, Chief Executive Officer Rod Fehring
Delfin Lend Lease Chief Executive Officer Rod Fehring 2
Slide 3: Agenda
Agenda 1. Overview 2. The Business 3. Our Competitive Advantages 4. Growth Outlook 5. Summary 3
Slide 4: Overview
1.0 Overview 4
Slide 5: Key Facts
Key Facts • Australia’s No. 1 Urban Community developer • Expertise in large scale master planned community developments • Strong consumer brand • Strong momentum notwithstanding softening of residential cycle • Largest geographic exposure – South East Queensland • Good long term opportunity to repl
Slide 6: Delfin is Australia's No. 1 Residential Land Developer
Delfin is Australia’s No. 1 Residential Land Developer Market Share Backlog 12.0% 60000 10.0% 50000 8.0% 40000 6.0% 30000 4.0% 20000 2.0% 10000 0.0% 0 Delfin LL Stockland AV Peet Australand Lensworth Delfin LL Lensworth Stockland Peet Australand AV Jennings Jennings 6
Slide 7: The Business
2.0 The Business 7
Slide 8: The Business
The Business 1 2 • Cover major growth corridors - 20 active 3 projects in 9 population centres • Project durations 5 - 20 years 4 5 • Sell approx. 4,000 “lots/products” p.a. • Market shares of 25-50% of key trading 6 7 corridors 9 8 10• A consumer based business • 55% consumer sales 14 12 • 40% buil
Slide 9: Caroline Springs - Melbourne
Caroline Springs - Melbourne 9
Slide 10: Varsity Lakes – Gold Coast
Varsity Lakes – Gold Coast 10
Slide 11: Forest Lake - Brisbane
Forest Lake - Brisbane ¢ ‘| ee eT EAE precae hl aes doit re iy wr re:
Slide 12: Nelson's Ridge - Sydney
Nelson’s Ridge - Sydney 12
Slide 13: St Marys – Sydney
St Marys — Sydney ST MARYS DEVELOPMENT PRECINCTS
Slide 14: Our Competitive Advantages
3.0 Our Competitive Advantages 14
Slide 15: Our Competitive Advantages
Our Competitive Advantages • Communities created by innovative partnerships in: Creating Special Places - Retail/shopping - Education Fully Planned Community Attention To Detail Respect for Our Environment Business Prosperity Quality Housing Options Greener Open Spaces A Sense Of Belonging Learning
Slide 16: Competitive Profile
Competitive Profile DLL Australand AV Jennings Stockland Peet Lensworth Projects # 21 45 67 35 37 10 Scale/Size of Projects – Avg > 2,000 lots < 500 < 1,000 < 1,000 < 1,000 < 2,000 Business Model Generally Generally Mix of LMM Mix of LMM Syndication Generally land land and upfront and upfront and up
Slide 17: Competition
Competition City Fringe Centre Outer Suburbs Middle Suburbs Inner Suburbs 70% 7 Starts 5% Volume CBD Investra Forrester Kurts * ‘SMALL DEVELOPERS’ Low Capital Low Expenditure Lensworth * Grollo Australand AV Jennings * Diversified Mirvac Diversified Stocklands Diversified Multiplex Meriton Villaworl
Slide 18: Better Business Model Than Competitors
Better Business Model Than Competitors Key Delfin Features Key Metrics • Scale projects Backlog Lots (1) 51,000 • Master planned communities • Smaller average size lots Capital Committed (2) $330.3m • Control of land off balance sheet Capital Per Lot (3) $6,750 EBIT / Average Net Assets (4) 22.5% Av
Slide 19: Marketing Overview – Dwelling Commencements
Marketing Overview – Dwelling Commencements Dwelling Commencements - Australia Low int, (BIS Shrapnel - May'04) 200,000 stock balance Average Underlying Demand GST "pull-thru " 180,000 160,000 140,000 120,000 recession, recession, asian crisis, 100,000 High int rates High int rates, recession recess
Slide 20: Indicative Profile of Project Portfolios
Indicative Profile of Project Portfolios Backlog Lots 2005 2006 2007 2008 2009 2010 2011 2012 2013 Trading The Chase 250 Fairway 150 Riverside Gardens 550 Forest Lake 350 Craigieburn 1,500 Forest Gardens 750 Varsity Lakes 400 Springfield Lakes 9,900 Holroyd Gardens 200 Caroline Springs 3,900 Edgewat
Slide 21: Delfin Business Model focused on Land Control
Delfin Business Model focused on Land Control Own Joint Development Venture Management Forest Lake Caroline Springs Craigieburn Fairway Waters Mawson Lakes Lakeside Pakenham The Chase Holroyd Gardens Nelson Ridge Waterford The Sanctuary Calderwood St Marys Forest Gardens Riverside Gardens Edgewater
Slide 22: Platform in Senior Living / Retirement sector
Platform in Senior Living / Retirement sector • Retirement By Design business secured • 11 villages in NSW, Vic and Qld • 1,900 homes under management • 2,700 residents • Employ approx 350 staff • Top 5 participant in resident funded retirement sector • Been operating for over 20 years (Forest Hills
Slide 23: Growth Outlook
4.0 Growth Outlook 23
Slide 24: Australian Market Overview
Australian Market Overview ! 1% of Australian Market ! 1,000 dwellings underlying demand ! 1% of Australian Market ! 1% of Australian Market Darwin ! 2,200 dwellings underlying ! 1,600 dwellings underlying demand demand NT Cairns Townsville ! 23% of Australian Market ! 37,000 dwellings QLD ! 13% of
Slide 25: Stock Analysis
Stock Analysis • Majority of demand NSW / Vic / Qld / WA (Metropolitan Areas) • Household formation, immigration strength and interstate migration patterns to ensure strong level of demand in NSW, WA and SEQ for next 2 years • Victoria to go into oversupply in 2004/05 due to investment driven units
Slide 26: Delfin's Largest Market Share is SEQ
Delfin’s Largest Market Share is SEQ 2003 Settlements By Region 2004 Backlog Lots By Region SA NT SA NT FNQ FNQ VIC VIC NSW SEQ SEQ NSW 26
Slide 27: Mix of Project Development Phases
Mix of Project Development Phases • Calderwood (NSW) • St Marys (NSW) • Forest Gardens (Cairns) • Forest Lake (SEQ) • Yarrabilba (SEQ) • Nelson’s Ridge (NSW) • Nelsons Ridge (NSW) • Mawson Lakes (SA) • R’side Gardens (T’ville) • Tanglewood (SEQ) • Lakeside-Pakenham (Vic)• Waterford (SEQ) • Caroline
Slide 28: Growth Strategy
Growth Strategy • Expand Sydney presence and operations • Expand geographies (Perth and Canberra) • Capture value added: – Town Centres (Leveraged through JVs) – Built form = Delfin Living = $24 million earnings over 4 years • Refine realty operations to consolidate downstream earnings and customer
Slide 29: Sales Momentum
Lend Lease £ o x oO “ 2 = 3 7 c Ww > < -_ c 3 = “ > “ 2 rd 19) 2 < c 3 = AWD sajespuey [2,01 May-2004 Fpr-2004 Mar-2004 Feb-2004 Jan-2004 Dec-2003 Nov-2003 Oct-2003 Sep-2003 Fug-2003 Jul-2003 Jun-2003 May-2003 Mar-2003 Feb-2003 Jan-2003
Slide 30: Backlog Growth
Backlog Growth DLL Backlog including Pipeline Projects up to 80,000 lots by 2006 11% 1% 26% Geographic Mix post Conversion 37% 18% 8% VIC NSW SA SEQ NT FNQ 30
Slide 31: Summary Financial Profile
Summary Financial Profile Delfin has been a growing, successful business within Lend Lease 2002(1) 2003 Lots settled 4,183 3,782 Project Settlements(2)($m) 362.2 366.3 DLL Revenue ($m) 183.6 274.1 Net profit before tax ($m) 30.5 62.4 NPBT margin (3) 16.6% 22.7% Total assets at year end ($m) 270.0 28
Slide 32: Summary
5.0 Summary 32
Slide 33: Summary
Summary • Australia’s leading land developer – Strong position in key residential markets: SEQ, Sydney & Melbourne • Attractive business model through cycles – Relatively low capital commitment – Superior returns • Retained intellectual property (in-house skills to deliver large scale, master planne