Bob McNamara
Chief Executive Officer, Americas
Business Update - Americas
Agenda
1.
2.
3.
4.
5.
6.
Overview of business environment
Lend Lease in the Americas
Project Management & Construction
Infrastructure development
Development – Lend Lease DASCO
Key priorities
Overview of business environment
Sector
Outlook
Opportunity/ Impact for Lend Lease
General economic conditions
 GDP growth of 2.9% in FY2012
Construction sector
 New work secured greater than backlog burn
Infrastructure development
 Military program coming to an end but long tail of
work
 Secured second phase (Group B) of Privatization of
Army Lodgings program
Residential development
 Limited exposure – one project in Denver is on hold
Healthcare
 Acquisition of Lend Lease DASCO gives exposure to
growing medical office development market
Investment Management/Retail
 Strategy to capitalise on demand for prime retail
assets – recycle capital in King of Prussia
Clear signs of recovery
3
Lend Lease in the Americas
Key Areas of Focus
 Project Management & Construction
Canada

Ranked 1st in multifamily, 5th in healthcare

260 projects

Profit coming off low base / resized cost base
 Infrastructure Development
United States

22 military bases – market share of 18.2%

Strong relationships with all branches of the
military

Long tail of earnings
Mexico
Brazil
Argentina
 Investment Management

King of Prussia – one of top US malls
 Development

Lend Lease DASCO – gives capability in
healthcare development

Growing market and pipeline

Opportunity to reinvest capital
4
Project Management & Construction
Operational
update
 Settlement reached with NY City DOI – restores
standing to win NYC agency work
 WTC – liabilities, if any, are now limited to
available insurance
 Business made small loss after tax in first half
of the year
 Efficiency and overhead reductions underway
Opportunities
 Emerging opportunities in healthcare, multifamily residential and multi-sites
Outlook
 Activity levels have picked up
 Recent project wins – Delta Air Lines’ Terminal
4 Headhouse Expansion/Renovation Project in
NY and Construction services provider for over
500 7-Eleven stores in the US and Canada
 Leverage business as market recovers
Key Metrics
Operating profit after
tax (A$m)
Construction new work
secured (A$m)
Construction backlog
revenue (A$m)
Dec
2010
Dec
2009
(3.2)
(19.9)
938.8
256.3
1,468.5
1,183.7
National September 11 Memorial
and Museum, New York, NY
5
Project Management & Construction
project experience
Chase Bank Rebranding, Various Locations, US
One Museum Park East, Chicago, Illinois
El Aleph, Buenos Aires, Argentina
6
Infrastructure development
Operational
Update
 Secured US$350m second phase (Group B) of
Privatization of Army Lodgings program
 Reached financial close on US$377m
Wainwright Greely project in Alaska
Opportunities
 Canada – shortlisted on Pan American Games
 Long tail of ongoing work in military housing
program
 New work in privatization of army lodgings,
green retrofits and renewable energies
Outlook
 Military housing projects coming to an end
 Further phases to be awarded in lodgings
program
Key Metrics
Operating profit after tax
(A$m)
Number of projects
Number of units under
management
Backlog gross profit
margin (A$m)
Invested equity (A$m)
Dec
2010
Dec
2009
20.2
27.2
22
20
49,285
44,050
342.9
364.5
61.3
61.3
Fort Campbell Zero Energy Housing
Fort Campbell, Kentucky
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Infrastructure development
project experience
Camp Lejeune, Camp Lejeune, North Carolina
Army Hawaii Family Housing, Oahu, Hawaii
Fort Drum Mountain Community Homes, Fort Drum, New York
8
Development – acquisition of
Lend Lease DASCO
What they do
 National leader in the development, financing,
leasing and management of medical facilities
 Acquisition price of US$10m and an earn out
over a 4 year period
 Existing development pipeline consisting of 10
projects
Strategic
Rationale
 Growing industry driven by increased
healthcare spend
 Changing medical technologies and insurance
models shifting delivery of care out of hospitals
 Integrated property delivery model
 Provide facilities on established hospital
campuses
Opportunities
 Provides opportunities for other parts of Lend
Lease, including construction, fund and asset
management
Methodist North at Allen Road, Peoria, Illinois
Parker Adventist Hospital, Parker, Colorado
9
Healthcare
project experience
HCA Sky Ridge Medical Center, Lone Tree, Colorado
New York-Presbyterian Hospital - Vivian and Seymour Milstein Family
Heart Center, New York, NY
St. Joseph's Hospital, North Lutz, Florida
10
Key priorities for the Americas
 Develop US healthcare strategy –
strong pipeline of opportunities
 Leverage project management &
construction into market recovery
 Continue growth focus in Latin
America with concentration of
activity in Argentina and Mexico,
and some client led opportunities
in Brazil
Trump Tower, Chicago, IL
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