bob mcnamara chief executive officer, americas business update - americas
TRANSCRIPT
Agenda
1. Overview of business environment2. Lend Lease in the Americas3. Project Management & Construction4. Infrastructure development5. Development – Lend Lease DASCO6. Key priorities
Overview of business environment
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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
Lend Lease in the Americas
Key Areas of Focus
Canada
United States
Brazil
Argentina
Mexico
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Project Management & Construction Ranked 1st in multifamily, 5th in healthcare 260 projects Profit coming off low base / resized cost base
Infrastructure Development 22 military bases – market share of 18.2% Strong relationships with all branches of the
military Long tail of earnings
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
Project Management & Construction
National September 11 Memorial and Museum, New York, NY
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, multi-family 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
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Key MetricsDec 2010
Dec 2009
Operating profit after tax (A$m) (3.2) (19.9)
Construction new work secured (A$m) 938.8 256.3
Construction backlog revenue (A$m) 1,468.5 1,183.7
Project Management & Constructionproject experience
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Chase Bank Rebranding, Various Locations, US
One Museum Park East, Chicago, Illinois El Aleph, Buenos Aires, Argentina
Infrastructure development
Fort Campbell Zero Energy Housing Fort Campbell, Kentucky
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Operational Update
Secured US$350m second phase (Group B) of Privatization of Army Lodgings program
Reached financial close on US$377m Wainwright Greely project in Alaska
Opportunities
Canada – shortlisted on Pan American Games Long tail of ongoing work in military housing
program New work in privatization of army lodgings,
green retrofits and renewable energies
Outlook Military housing projects coming to an end Further phases to be awarded in lodgings
program
Key MetricsDec 2010
Dec 2009
Operating profit after tax (A$m) 20.2 27.2
Number of projects 22 20
Number of units under management 49,285 44,050
Backlog gross profit margin (A$m) 342.9 364.5
Invested equity (A$m) 61.3 61.3
Infrastructure developmentproject experience
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Camp Lejeune, Camp Lejeune, North Carolina
Army Hawaii Family Housing, Oahu, Hawaii Fort Drum Mountain Community Homes, Fort Drum, New York
Development – acquisition of Lend Lease DASCO
Parker Adventist Hospital, Parker, Colorado
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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
Healthcareproject experience
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St. Joseph's Hospital, North Lutz, FloridaNew York-Presbyterian Hospital - Vivian and Seymour Milstein Family Heart Center, New York, NY
HCA Sky Ridge Medical Center, Lone Tree, Colorado
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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