LENDLEASE GROUP — Annual Report 2009

Aug 19, 2009

20 August 2009

The Manager The Manager

Companies Section Companies Section ASX Limited New Zealand Stock Exchange Limited

Pages: One Hundred and Sixty One (161) Pages

Results for Announcement to the Market Preliminary Final Report – Listing Rule 4.3A

Lend Lease Corporation Limited today announces its full year results for the year ended 30 June 2009. Attached are the following documents:

• Preliminary Final Report (Appendix 4E)
• Full Year Consolidated Financial Report
• − Management Discussion & Analysis of Financial Condition and Results of Operations
• − Portfolio Report
• − Five Year Profile
• − Directors' Report
• − Consolidated Financial Statements
• − Independent Auditor's Report

ENDS

For further information please contact:

Sally Cameron Lend Lease Corporation Tel: 02 9236 6464

Lend Lease Corporation Limited

ABN 32 000 226 228

Appendix 4E

Preliminary Final Report for the financial year ended 30 June 2009 (previous corresponding period being the financial year ended 30 June 2008)

Results for Announcement to the Market

Key Information

	June 2009 A\$m	June 20081 A\$m	% Change
Revenue	14,785.0	14,677.9	0.7
(Loss)/profit after tax attributable to members	(653.6)	254.2	(357.1)

1 June 2008 profit after tax of A\$265.4 million has been adjusted to A\$254.2 million to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements'.

Dividends

Total amount per security	41 cents	31 cents
Final Dividend – Payable 25 September 2009	16 cents	16 cents
Interim Dividend – Paid 1 April 2009	25 cents	15 cents
	Amount per security	Franked amount per security

The record date for determining entitlement to the final dividend is 11 September 2009.

The Company's Dividend Reinvestment Plan (DRP) was reactivated in August 2008. The last election date for participation in the DRP for the final dividend is 10 September 2009. The issue price is the weighted average price of Lend Lease shares traded on the Australian Securities Exchange during the five business days immediately following the date that the Lend Lease share price is quoted ex dividend for payment of a dividend, less the Discount. If that price is less than 50 cents, the issue price will be 50 cents. The Discount rate is 2.5%. Shares issued under the DRP rank equally with all other shares on issue.

The remainder of the information requiring disclosure to comply with listing rule 4.3A is contained in the attached audited June 2009 Annual Consolidated Financial Report and the additional information section below.

Additional Information

Net Tangible Assets

	June 2009	June 20081
Net Tangible Assets per security	\$4.20	\$5.61

1 June 2008 net tangible assets per security of A\$5.77 has been adjusted to A\$5.61 to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements'.

The Annual General Meeting

The Annual General Meeting will be held at City Recital Hall, 2 – 12 Angel Place, Sydney NSW 2000 at 10:00 am on Thursday, 12 November 2009. The Annual Report will be available in October 2009.

Overview 1
Introduction1
Results Summary1
Statutory Profit/(Loss) After Tax2
Operating Profit After Tax2
Shareholder Returns 3
Dividends3
Group Debt3
Cash Flow4
Investments 4
Property Investment Revaluations5
Retail6
Overview of Business6
Key Financial Results 6
Retail – Asia Pacific6
Retail – Europe7
Retail – Americas 7
Communities8 Overview of Business8
Key Financial Results 8
Communities – Asia Pacific 8
Communities – Europe10
Communities – Americas 11
Public Private Partnerships 12
Overview of Business12 Key Financial Results 12
Public Private Partnerships – Americas 12
Public Private Partnerships – Europe 13
Investment Management 15
Overview of Business15
Key Financial Results 15
Funds Under Management 16
Project Management and Construction 17
Key Financial Results 17
New Work Secured and Backlog GPM 18
Corporate 19
Group Services 19
Group Treasury19
Appendix 1 – Results Detail 20
Appendix 2 – Operating Results Detail in Local Currency21

All currency amounts in the MD&A are expressed in Australian dollars unless otherwise specified. The following discussion and analysis is based on the Lend Lease Corporation (the Group) Consolidated Financial Statements for the year ended 30 June 2009 and should be read in conjunction with those financial statements.

Overview

Introduction

The Group has five lines of business that operate in three geographic regions: Asia Pacific, Europe and the Americas.

• − The Retail business comprises retail property management, asset management and development. This business also includes the Group's ownership interests in direct property investments, including those held via limited partnerships;
• − The Communities business is involved in the development of large scale master-planned urban communities, inner city apartments and senior living;
• − The Public Private Partnerships (PPP) business manages and invests equity in large PPP projects;
• − Investment Management provides real estate investment management services. Investment Management includes the Group's ownership interests in property investments held indirectly through investments in Lend Lease managed funds;
• − Project Management and Construction provides construction, project management and design services through Bovis Lend Lease (Bovis).

Results Summary		Revenue	EBITDA		Profit/(Loss) After Tax1,2
	June	June	June	June	June	June
	2009	2008	2009	2008	2009	2008
	A\$m	A\$m	A\$m	A\$m	A\$m	A\$m
Retail	125.8	130.7	86.0	79.4	60.3	66.1
Communities	586.4	969.5	70.0	124.0	88.3	100.3
Public Private Partnerships	1,507.0	962.7	66.7	46.0	74.4	59.0
Investment Management	69.1	127.3	35.3	151.2	28.9	137.3
Project Management and Construction	12,422.0	12,426.8	251.6	201.7	168.9	150.0
Total operating businesses	14,710.3	14,617.0	509.6	602.3	420.8	512.7
Group Services	23.4	7.6	(80.6)	(86.2)	(67.8)	(59.0)
Group Treasury	51.3	53.3	(17.2)	1.0	(41.4)	(14.8)
Group Amortisation					(4.1)	(3.0)
Total corporate	74.7	60.9	(97.8)	(85.2)	(113.3)	(76.8)
Total operating	14,785.0	14,677.9	411.8	517.1	307.5	435.9
Inventory carrying value adjustments			(226.1)	(121.5)	(188.3)	(121.5)
Goodwill impairments			(252.9)		(252.9)
Other carrying value adjustments			(233.0)		(204.7)
Property investment revaluations3			(325.7)	(69.2)	(263.0)	(60.2)
Savings implementation costs			(120.8)		(83.9)
Net gain on Bovis UK pension scheme curtailment			44.3		31.7
Total statutory	14,785.0	14,677.9	(702.4)	326.4	(653.6)	254.2

1 Profit/(loss) after tax is after adjusting for the loss attributable to minority interests of A\$12.3 million (June 2008: A\$6.4 million loss after tax). 2 June 2008 operating profit after tax has been adjusted to A\$435.9 million (statutory profit has been adjusted to A\$254.2 million) to reflect the impact of adopting AASB Interpretation 12 Service Concession Arrangements for the first time this year. The before and after tax effect of the adjustment for the year ended June 2008 is an A\$11.2 million loss. All ratios have been restated based on the revised results.

3 Represents unrealised revaluations on property investments that are consolidated or accounted for using the equity method in the Consolidated Financial Statements.

The difficult economic environment experienced in the first half of the financial year continued to impact the Group in the six months ended 30 June 2009. As a result, the Group has seen a significant slowdown in all of its key markets and geographies. The market turbulence has also led to a large decline in property asset values. This resulted in a write-down in the carrying value of the Group's tangible and intangible assets of A\$656.0 million after tax and A\$252.9 million after tax respectively.

In response to slowing momentum, the Group has implemented a number of cost reduction initiatives which have resulted in one-off implementation costs of A\$83.9 million after tax. The Group recognised a net gain from the curtailment of the Bovis UK pension scheme of A\$31.7 million after tax.

As a result of the above non operating adjustments, the Group reports a statutory loss after tax of A\$653.6 million for the year ended 30 June 2009.

The Group continues to remain focused on key financial fundamentals such as strong cash management and maintaining liquidity as well as significant cost reductions to ensure its cost base aligns with market conditions.

Overview continued

Results Summary continued

The Group remains in a strong financial position with cash and cash equivalents at 30 June 2009 of A\$1,120.8 million (June 2008: A\$842.8 million), net debt (including other non current financial liabilities) of A\$195.8 million (June 2008: A\$287.3 million) and low gearing (net debt to total tangible assets, less cash) of 2.9% (June 2008: 4.1%).

During the year, the Group completed the acquisition of a 43.2% stake in Lend Lease Primelife Limited (LLP) (previously known as Babcock & Brown Communities Group) and the associated management rights, expanding the Group's interest in the fast growing retirement sector.

Statutory Profit/(Loss) After Tax

The Group has reported a statutory loss after tax for the year ended 30 June 2009 of A\$653.6 million after recognising the following non operating adjustments:

• − A reduction in the carrying value of inventory of A\$188.3 million after tax principally relating to the Communities businesses in Australia, the United Kingdom (UK) and the United States (US) due to adverse trading conditions;
• − The impairment of the carrying value of the goodwill in Crosby Lend Lease (Crosby) of A\$172.4 million after tax and the Australian Communities business of A\$80.5 million after tax due to a deterioration in residential markets;
• − Other carrying value adjustments of A\$204.7 million after tax which includes a reduction in the carrying value of the Group's interests in both UK and Australian retail and communities projects, investment management funds in Australia and a loss of A\$33.9 million after tax on the Group's exposure to the FKP Property Group;
• − Unrealised property investment revaluation losses on retail investments of A\$263.0 million after tax due to the expansion of capitalisation rates in all property markets, most significantly in the UK and US;
• − In response to slowing market conditions, cost savings initiatives have been implemented which resulted in one-off implementation costs of A\$83.9 million after tax;
• − The curtailment of the Bovis UK pension scheme has resulted in a net gain of A\$31.7 million after tax.

Operating Profit After Tax

Operating profit after tax for the year ended 30 June 2009 decreased by 29% to A\$307.5 million. Operating profit after tax was positively impacted by foreign exchange movements of A\$17.1 million.

The Retail business operating profit after tax, although lower than the prior year, has remained relatively robust primarily due to a comparably stable income flow from the Bluewater and King of Prussia Shopping Centres.

The Communities business operating profit after tax decreased due to a decline in residential sales and settlement volumes in both the UK and Australia due to weak trading conditions. The result for Asia Pacific Communities includes the sale of the Group's interest in seven retirement villages and an aged care facility to LLP.

The increase in operating profit after tax for the PPP business is mainly attributable to the UK PPP business, where operating profit after tax increased due to a negative prior year adjustment as a result of adopting AASB Interpretation 12 Service Concession Arrangements for the first time this year. No Actus Lend Lease (Actus) projects reached financial close during the year.

The contribution from Investment Management was lower as the prior year included a profit after tax of A\$40.1 million from the sale of a proportion of the Group's interest in Australian Prime Property Funds (APPF) and a tax exempt dividend of A\$47.9 million from the Group's interest in the advisor company to Lend Lease Global Properties, SICAF (Global Fund) in relation to incentive fees.

Project Management and Construction operating profit after tax increased, reflecting the strong performance of the Australian business and improved performance in the UK.

Group Services includes costs related to Lend Lease Ventures, which is focused on the commercialisation of green energy opportunities and associated property related activities, and increased costs related to the Group's captive insurance vehicle.

Group Treasury profit after tax decreased due to higher interest costs driven by the £350.0 million UK syndicated bank facility being fully drawn down for part of the year, lower interest rates on cash deposits and the hedge cost on current year profits.

Overview continued

Shareholder Returns

June June 20083 2009
Earnings per share (EPS) on operating profit after tax1 cents 72.5 108.7 EPS on statutory profit/(loss) after tax1 cents (154.1) 63.4
Return on equity (ROE) on statutory profit/(loss) after tax2 %	(24.4) 8.2

1 EPS is calculated using the weighted average number of shares on issue including treasury shares. Under the Australian Accounting Standards, shares held in employee benefit vehicles, including employee share plans, which Lend Lease sponsors, are treated as treasury shares and are excluded from the calculation. This would have the effect of increasing the EPS calculations above if applied.

2 ROE is calculated based on statutory profit/(loss) after tax and average equity.

3 The ratios for the year ended June 2008 have been adjusted for the impact of adopting AASB Interpretation 12 Service Concession Arrangements for the first time.

Dividends

A final 100% franked dividend of 16 cents per share will be paid on 25 September 2009 (June 2008: 34 cents per share 45% franked). This represents a payout ratio of 61% of operating profit after tax for the full year ended 30 June 2009.

Group Debt

		June 2009	June 2008
Net debt1	A\$m	195.8	287.3
Gross borrowings to total tangible assets2	%	16.9	14.5
Net debt to total tangible assets, less cash3	%	2.9	4.1
Interest coverage4	times	5.2	7.7
Credit rating (Standard & Poor's/Moody's)	rating	BBB-/Baa3	BBB-/Baa3

1 Net debt is borrowings, including other non current financial liabilities, less cash.

2 Calculated as borrowings including other non current financial liabilities divided by total tangible assets.

3 Calculated as net debt divided by total tangible assets, less cash.

4 Calculated as operating EBITDA plus interest revenue divided by gross finance costs, including capitalised finance costs.

The Group's net debt at 30 June 2009 was A\$195.8 million, including other non current financial liabilities of A\$191.6 million. The Group's gearing remains low and interest coverage at 5.2 times is in line with the Group's internal target.

The Group is in a strong liquidity position with cash and cash equivalents of A\$1,120.8 million at 30 June 2009. In addition, the Group had un-drawn committed bank facilities of A\$612.0 million.

The average maturity of Lend Lease's drawn debt at 30 June 2009 was eight years, with the earliest maturity date being November 2010.

At 30 June 2009, the mix of borrowings, including other non current financial liabilities, was 76% at fixed rates and 24% at floating rates.

On 11 February 2009, Lend Lease issued 50 million new shares via an institutional placement which raised A\$302.5 million before costs associated with the placement.

The Group continues to maintain an investment-grade credit rating.

Overview continued

Cash Flow

	June	June
	2009	2008
	A\$m	A\$m
Net cash provided by operating activities	382.2	268.7
Net cash (used in)/provided by investing activities	(473.9)	364.5
Net cash provided by/(used in) financing activities	356.0	(312.4)
Effect of foreign exchange rate movements on cash and cash equivalents	13.7	(28.1)
Net increase in cash and cash equivalents	278.0	292.7

Operating cash inflows of A\$382.2 million represent the underlying cash flows from the Group's operating businesses net of continued investment in property developments. This is a significant increase in the current year as the prior year also included the receipt of the tax refund and associated interest from the resolution of the tax dispute with the Australian Taxation Office.

Investing cash outflows of A\$473.9 million includes the acquisition of the Group's further stake in LLP, the associated management rights and the related convertible notes.

Financing cash inflows of A\$356.0 million principally relates to the proceeds from the share issue of A\$302.5 million and the partial drawdown of the £350 million syndicated bank facility offset against dividend payments of A\$188.3 million.

Investments

		Lend Lease	Lend Lease
		Share of	Share of	Market	Market
		Income1,2	Income1,2	Value3	Value3
		June	June	June	June
		2009	2008	2009	2008
	Region	A\$m	A\$m	A\$m	A\$m
Retail
Bluewater	UK	53.7	58.5	814.3	1,188.8
King of Prussia	US	33.9	25.7	427.0	421.7
Other retail investments	Various	5.9	11.5	222.8	406.0
Total		93.5	95.7	1,464.1	2,016.5
Investment Management
Other retail investments	Various	24.3	70.0	432.7	505.5
Other investments	Various	2.0	22.7	72.9	98.3
Total		26.3	92.7	505.6	603.8
Total investments		119.8	188.4	1,969.7	2,620.3

1 Represents Lend Lease's share of income before tax from investments net of direct expenses and allocated overhead, excluding property investment revaluations.

2 There are no gains or losses on the disposal or redemption of available for sale financial assets included in Lend Lease's share of income for the year ended 30 June 2009 (June 2008: A\$67.0 million).

3 Market value is based on independent valuations and is net of project-specific debt.

Lend Lease held property investments, directly or indirectly, with a market value of A\$2.0 billion at 30 June 2009. The market value of investments declined by A\$650.6 million due to a weakening of capitalisation rates in all regions. This decline is net of positive foreign exchange movements of A\$90.8 million.

During the year, the Group's interest in property investments generated investment income EBITDA of A\$119.8 million (June 2008: A\$121.4 million), excluding gains on the disposal or redemption of available for sale financial assets.

Overview continued

Investments continued

Retail

The independent market value of 100% of Bluewater at 30 June 2009 decreased by 30% to £1,330.0 million (A\$2,714.3 million). The value of Lend Lease's 30% direct interest decreased by A\$374.5 million to A\$814.3 million, net of foreign exchange movements. As Bluewater is held as inventory, the asset is recorded at cost in the financial statements, which at 30 June 2009 was A\$506.2 million (June 2008: A\$520.7 million).

The value of Lend Lease's 50% interest in King of Prussia decreased by 14% to US\$345.9 million (June 2008: US\$400.6 million), although the Australian dollar equivalent value increased due to a positive foreign exchange movement.

Other retail investments have decreased by A\$183.2 million principally due to a decline in the market value of investments as a result of an expansion in capitalisation rates.

Investment Management

Other retail investments decreased by A\$72.8 million to A\$432.7 million principally due to a decrease in the market value of the Group's UK investment in Lend Lease Overgate Partnership and Lend Lease Retail Partnership.

Other investments decreased by A\$25.4 million principally due to a decrease in the market value of the Group's UK investments.

Property Investment Revaluations

		Unrealised	Unrealised	Unrealised	Unrealised
		Revaluation	Revaluation	Revaluation	Revaluation
		Gain/(Loss)	Gain/(Loss)	Gain/(Loss)	Gain/(Loss)
		Before Tax	Before Tax	After Tax	After Tax
		June	June	June	June
		2009	2008	2009	2008
	Region	A\$m	A\$m	A\$m	A\$m
Retail
Pakenham Place	Australia	(3.6)	(2.9)	(3.6)	(2.8)
Chelmsford Meadows Shopping Centre	UK	(58.6)	(34.7)	(43.9)	(25.8)
Performance Retail Limited Partnership	UK	(28.2)	(9.5)	(26.4)	(7.8)
Warrington Retail Limited Partnership	UK	(88.5)	(31.1)	(88.5)	(31.1)
King of Prussia	US	(84.5)	(6.9)	(49.4)	(4.0)
Total		(263.4)	(85.1)	(211.8)	(71.5)
Investment Management
Asia Pacific Investment Company No. 2 Limited	Asia	(11.6)	22.7	(8.1)	15.9
Lend Lease Overgate Partnership	UK	(50.7)	(6.8)	(43.1)	(4.6)
Total		(62.3)	15.9	(51.2)	11.3
Total property investment revaluations1		(325.7)	(69.2)	(263.0)	(60.2)

1 Represents unrealised revaluations on property investments that are consolidated or accounted for using the equity method in the Consolidated Financial Statements and are therefore included in statutory profit/(loss).

Retail

Overview of Business

Lend Lease focuses on shopping centres with expansion potential in growing catchment areas. This business strategy is designed to secure integrated positions, which play to the Group's core skills and involve all components of the property value chain (ownership, development, construction and property management).

Key Financial Results

The key financial results for the Retail business are summarised below.

		Revenue		EBITDA	Profit/(Loss) After Tax
	June	June		June	June	June
	2009	2008	2009	2008	2009	2008
	A\$m	A\$m	A\$m	A\$m	A\$m	A\$m
Property Management
Asia Pacific	39.9	34.2	11.6	2.0	8.2	1.3
Europe	17.2	22.2	(19.1)	(18.3)	(16.6)	(15.5)
Total	57.1	56.4	(7.5)	(16.3)	(8.4)	(14.2)
Investment Income
Asia Pacific	1.3	1.1	0.9	0.6	0.7	0.4
Europe	67.4	73.2	58.7	69.4	40.6	57.8
Americas			33.9	25.7	27.4	22.1
Total	68.7	74.3	93.5	95.7	68.7	80.3
Total Operating
Asia Pacific	41.2	35.3	12.5	2.6	8.9	1.7
Europe	84.6	95.4	39.6	51.1	24.0	42.3
Americas			33.9	25.7	27.4	22.1
Total operating	125.8	130.7	86.0	79.4	60.3	66.1

Total operating profit after tax decreased by A\$5.8 million from the prior year, principally due to difficult trading conditions in the UK. The adjustments made to the carrying value of assets are excluded from operating profit but are included in the Group's statutory loss after tax.

Retail – Asia Pacific

Operating profit after tax increased by A\$7.2 million to A\$8.9 million due to increased fees from assets under management and reduced overheads.

In Asia Pacific, Lend Lease holds a direct ownership interest in two development opportunities and two operating retail centres. The business is currently undertaking master-planning and development management of six centres in Australia and one in Singapore with an estimated gross development cost of A\$2.8 billion. In addition, the business carries out the property management of nine centres in Australia and two in Asia, with a total gross lettable area of 602,700 square metres (sqm).

Retail continued

Retail – Asia Pacific continued

Key trading events in the year include:

• − Construction and pre-leasing progressing at the 313@Somerset retail development. The development is expected to commence trading in late 2009. Lend Lease has a 25% direct ownership interest in the development, with the remaining 75% held by Lend Lease Asian Retail Investment Fund (ARIF), in which Lend Lease holds a 10.1% interest;
• − Construction and pre-leasing progressing at the 420 George Street retail and commercial development in the Sydney central business district. APPF Retail holds a 25% interest in the retail development and APPF Commercial holds a 25% interest in the office development, alongside an external owner who holds the remaining 75%. Completion of this development is expected in 2011;
• − Completion of the redevelopment of PoMo (formerly Paradiz Centre), a retail and commercial building in Singapore. Lend Lease has a 25% direct ownership interest in the asset;
• − Construction and pre-leasing commencing on the Caroline Springs retail development in western Melbourne. The Lend Lease Core Plus Fund (LLCPF) holds a 50% interest in the retail development and APPF Retail holds the remaining 50% interest. Completion of this development is expected in late 2009;
• − Lend Lease manages all phases of these development projects including development, leasing, project management, design and construction and, on completion, asset and property management.

Retail – Europe

Operating profit after tax of A\$24.0 million declined by A\$18.3 million compared with the prior year, as a result of difficult trading conditions in the UK that resulted in a decrease in retail income and increased maintenance costs.

In Europe, Lend Lease's Retail business includes an ownership interest in five retail centres in the UK. The business has development opportunities at three of these centres with an estimated gross development cost of A\$1.9 billion. Given current economic conditions, a review of the development pipeline had been conducted and, where appropriate, capital expenditure has been curtailed or deferred. The business also carries out the asset management of five centres with a total gross lettable area of 336,700 sqm.

Key trading events in the year include:

• − The Preston Tithebarn Development, a 50% joint venture with Grosvenor Estates, secured a resolution to grant planning permission on 14 July 2009. The decision will be referred to Central Government to consider whether to call-in the application for public inquiry. A decision on a call-in is expected in 2009. In addition to securing John Lewis as a key scheme anchor, agreements to lease were signed with Marks & Spencer and cinema operator, Cineworld. Given current market conditions, expenditure has been significantly curtailed;
• − As already noted, there was a significant decline in the carrying value of the Group's investments in retail assets due to higher capitalisation rates across the portfolio.

Retail – Americas

In the Americas, Lend Lease's retail business comprises a 50% ownership interest in the partnership that owns the King of Prussia Mall in Pennsylvania. Lend Lease's share of operating income in US dollar terms is in line with the prior year.

The value of Lend Lease's 50% interest in King of Prussia decreased by 14% to US\$345.9 million (June 2008: US\$400.6 million), principally due to an increase in capitalisation rates, although the Australian dollar equivalent value increased due to a positive foreign exchange movement.

Communities

Overview of Business

The Communities business is involved in the development of large scale master-planned urban communities, inner city apartments and senior living. The Lend Lease business model includes land sourcing, master-planning and design, product development and marketing. The scale and scope of the Communities development positions ensure earnings are derived from a diverse range of projects. This diversity reduces the portfolio risk and also generates product for both the Investment Management and Project Management and Construction businesses.

Key Financial Results

The key financial results for the Communities business are summarised below.

	Revenue		EBITDA		Profit/(Loss) After Tax
	June	June	June	June	June	June
	2009	2008	2009	2008	2009	2008
	A\$m	A\$m	A\$m	A\$m	A\$m	A\$m
Asia Pacific	463.0	579.0	90.4	104.2	99.9	82.7
Europe	123.4	390.1	(18.8)	25.5	(10.4)	21.1
Americas		0.4	(1.6)	(5.7)	(1.2)	(3.5)
Total operating	586.4	969.5	70.0	124.0	88.3	100.3

Total operating profit after tax decreased by A\$12.0 million due to a significant decline in residential sales and settlement volumes as a result of weak trading conditions in both the UK and Australia compared to the prior year. The Asia Pacific Communities business includes the profit from the sale of its interest in seven retirement villages and an aged care facility to LLP for a consideration of A\$133.4 million.

As a result of the adverse trading conditions across the Australian and UK markets, the Communities business has reduced the carrying value of its inventory and other assets and has written off the goodwill in relation to the Crosby and Australian Communities businesses. These adjustments are excluded from operating profit after tax but are included in the Group's statutory loss after tax.

The Communities business has a residential backlog of 102,040 units and a total commercial backlog of 4.7 million sqm.

Communities – Asia Pacific

The key financial results for Communities – Asia Pacific are detailed below.

	June 2009	June 2008
Operating profit after tax (A\$m)	99.9	82.7
Number of units settled1	2,815	3,439
Gross sales value of units settled (A\$m)1,2	999.6	949.7
Gross sales value of pre-sales (A\$m)1,3	339.3	589.4
Number of projects4	39	47
Backlog (number of units)5,6
− Zoned (with planning approval)	26,790	27,090
− Unzoned (awaiting planning approvals)	58,005	58,240
Backlog – Residential (units)	84,795	85,330
Backlog – Commercial (sqm/000s)	3,478.7	3,228.8

1 Includes 100% of joint venture projects and therefore will not necessarily correlate with Lend Lease's profit after tax.

2 Gross sales value of units settled reflects residential and non-residential revenue from projects and the sale of deferred management fees.

3 Pre-sales represent contracts entered into prior to 30 June 2009 that have not settled and therefore do not form part of profit after tax in the current year. These sales are expected to settle in future years.

4 The number of projects excludes 61 retirement villages and 33 aged care facilities held by LLP.

5 Backlog includes the total number of units in both company-owned and joint venture projects. The actual number of units for any particular project can vary as planning applications are obtained.

6 This excludes the backlog for LLP retirement villages and aged care facilities.

Communities continued

Communities – Asia Pacific continued

The Communities business in Asia Pacific is focused on building a portfolio of market leading projects and assets in key sectors, including master-planned urban communities through Delfin Lend Lease; apartments through Vivas Lend Lease; integrated mixeduse property developments through Lend Lease Development; and senior living through co-investment and management of LLP and direct ownership through Retirement by Design. The product lines of the Communities business are: residential land lots; residential built-form (including houses, terraces and apartments); commercial (including retail, office, light industrial and social infrastructure); and senior living (including retirement villages, aged care and village operations).

The key financial results of the business by product line are detailed below.

		Residential Land Lots	Residential Built-Form		Commercial	5	Senior Living		Total
	June	June	June	June	June	June	June	June	June	June
	2009	2008	2009	2008	2009	2008	2009	2008	2009	2008
Settlements1
Number of units2	2,419	3,104	352	283			44	52	2,815	3,439
Gross sales
value (A\$m)3	415.4	505.0	338.0	207.0	233.1	220.3	13.1	17.4	999.6	949.7
Pre-sales1,4
Number of units	860	1,217	212	362				6	1,072	1,585
Gross sales value
(A\$m)	163.4	220.8	164.7	348.9	11.2	17.7		2.0	339.3	589.4

1 Includes 100% of joint venture projects and therefore will not necessarily correlate with Lend Lease's profit after tax.

2 The number of units settled during the year for Senior Living refers to primary sales (new development sites) and excludes any resales.

3 Gross sales value of units settled reflects revenue from projects and the sale of deferred management fees.

4 Pre-sales number of units represents contracts entered into prior to 30 June 2009 that have not settled and therefore do not form part of profit after tax in the current year. These sales are expected to settle in future years. The table excludes pre-sales relating to LLP.

5 The number of units settled and pre-sales number of units are not relevant measures for commercial.

• − Completing the acquisition of a 43.2% stake in LLP, the associated management rights and related convertible notes. As part of the transaction, the Group sold its interest in seven mature retirement villages and an aged care facility for a consideration of A\$133.4 million;
• − The total number of residential land lots settled decreased by 22% to 2,419 units as weaker trading conditions have been experienced, particularly in New South Wales, resulting in reduced revenues;
• − The average sales price per residential land lot increased by 6% from A\$162,700 to A\$171,700, which reflects strong price growth in Victoria and the Forde project in the ACT;
• − Residential built-form units settled increased by 69 units to 352 units. The current year includes built-form settlements on the Mosaic building at Victoria Harbour, Melbourne; Varsity Lakes, Queensland; Rouse Hill, Sydney; the evolve and Stonecutters buildings at Jacksons Landing, Sydney and the final settlements at Newington in Sydney;
• − The average sales price per residential built-form unit increased by 31% from A\$731,000 to A\$960,000, which reflects the significant proportion of high value evolve and Stonecutters apartments at Jacksons Landing being sold in the year;
• − The gross sales value of commercial projects of A\$233.1 million was marginally above prior year and included the sale by the Group of seven retirement villages and an aged care facility to LLP for \$133.4 million;
• − The number of units pre-sold at 30 June 2009 of 1,072 decreased by 32% on the prior year due to weaker trading conditions; − The acquisition of the Springbank Rise (formerly Casey 2) project in Canberra in partnership with Macquarie Real Estate Equity
• Fund No. 6, which added 1,100 zoned lots to backlog and will commence trading in 2010;
• − Securing Blake's Crossing, an 88 hectare site in South Australia, which added 1,390 residential lots to zoned backlog and achieved its first settlements in June 2009;
• − Commencing development of the Darling Walk site, a 64,000 sqm commercial project at Darling Harbour, Sydney, under leasehold from the Sydney Harbour Foreshore Authority, with APPF Commercial and an institutional investor as the 50/50 joint owners of the 99-year lease. Lend Lease provides development, design and construction services;
• − Selected as preferred partner for the major regeneration of the RNA Showgrounds precinct in Brisbane. The project will be staged over 15 years with a projected value of A\$2.5 billion.

Communities continued

Communities – Europe

In Europe, the Communities business comprises Crosby, an urban regeneration specialist operating in major northern England cities such as Manchester, Leeds and Birmingham, and large scale redevelopment projects at Greenwich, Stratford and Elephant and Castle. This business also holds a 45% interest in First Base, a company specialising in affordable housing and community projects in London.

The key financial results for Communities – Europe are detailed below.

	June 2009	June 2008
Operating (loss)/profit after tax (A\$m)	(10.4)	21.1
Number of units settled1	451	976
Gross sales value of units settled (A\$m)1,2	111.9	380.2
Number of units pre-sold1	286	285
Gross sales value of pre-sales (A\$m)1,3	28.5	41.6
Number of projects	27	27
Backlog (number of units)4
− Zoned (with planning approval)	13,115	13,520
− Unzoned (awaiting planning approvals)	275	950
Backlog – Residential (units)	13,390	14,470
Backlog – Commercial (sqm/000s)	410.1	422.6

1 Includes 100% of joint venture projects and therefore will not necessarily correlate with Lend Lease's profit after tax.

2 Gross sales value of units settled reflects residential and non-residential revenue from projects.

3 Pre-sales represent contracts entered into prior to 30 June 2009 that have not settled and therefore do not form part of profit after tax in the current year. These sales are expected to settle in future years.

4 Backlog includes the total number of units in both company-owned and joint venture projects. The actual number of units for any particular project can vary as planning applications are obtained.

Communities – Europe has 27 projects: the three London-based redevelopment projects at Greenwich, Stratford and Elephant and Castle and 24 Crosby projects. The Crosby projects are predominantly mid to high rise apartment developments on brownfield urban regeneration sites. The product lines of the UK business are: residential land lots; residential built-form (including houses, terraces and apartments); and commercial (including retail, office, light industrial and social infrastructure).

• − Operating profit after tax has decreased by A\$31.5 million to a loss after tax of A\$10.4 million;
• − The gross sales value of units settled decreased by A\$268.3 million and the number of units settled decreased by 525 over the year. Gross sales value of pre-sales declined to A\$28.5 million reflecting the slowdown in the UK market. There were no sales of commercial units in the year;
• − The Greenwich Peninsula project is a mixed-use development on 59 hectares of land on the Greenwich Peninsula in London. The project will be developed through a combination of land sales to third party developers and direct development with joint venture partners. An office development with a substantial pre-let to Transport for London for 19,400 sqm was completed in July 2009. The Ravensbourne College of Design & Communications is also now under construction;
• − In August 2008, Lend Lease was appointed as Development and Construction Manager for the first phase of Stratford City, a mixed-use development on 54 hectares of land with an existing planning consent of 9.4 million square feet. This first phase involves building the Athletes' Village for the London 2012 Olympic and Paralympic Games for the Olympic Delivery Authority (ODA). Over the past two years, Lend Lease has been in negotiations with the ODA and London and Continental Railways on the terms of the development and financing of the whole of Stratford City. These negotiations ended in May 2009 when the ODA decided to fund the project itself, having assessed Lend Lease's financial offer. Lend Lease continues to act as Development and Construction Manager;
• − In July 2007, Lend Lease was appointed as preferred bidder for the development of land at Elephant and Castle. Lend Lease is in negotiations with the London Borough of Southwark to agree a Regeneration Agreement for the building of a mixed-use development of 2,700 homes and retail and office space. In May 2008, Lend Lease entered into an exclusivity agreement with Southwark Council, the purpose of which was to provide Lend Lease with exclusive partner status while the extent of the decline in the UK market was evaluated. The agreement meant that the Council would not engage with alternative developers on this regeneration project. Continued market uncertainty resulted in the agreement being further extended and the Council's Executive agreed on 21 July 2009 to continue with the exclusivity deal. To date, there has been no significant expenditure on this development;
• − As announced at the half year the carrying value of inventory and goodwill relating to Crosby was written down by A\$100.4 million and A\$172.4 million respectively. The write downs are excluded from operating profit but are included in the Group's statutory loss for the year.

Communities continued

Communities – Americas

In the US, the Communities business focuses on large scale urban greenfield development and regeneration opportunities. The business has one project, Horizon Uptown in Denver, Colorado.

The key financial results for Communities – Americas are detailed below.

	June 2009	June 2008
Operating loss after tax (A\$m)	(1.2)	(3.5)
Number of units settled		1
Gross sales value of units settled (A\$m)		0.3
Number of projects	1	2
Backlog (number of units)1
− Zoned (with planning approval)	3,855	3,760
− Unzoned (awaiting planning approvals)		13,365
Backlog – Residential (units)	3,855	17,125
Backlog – Commercial (sqm/000s)	841.3	1,382.7

1 The actual number of backlog units for any particular project can vary as planning applications are obtained.

• − Local municipality approvals have been received on the Horizon Uptown project. The project is expected to be launched in 2012, subject to favourable market conditions;
• − A final termination notice under the Development Management Services Agreement with the Colorado State Board of Land Commissioners (CSB) for the Lowry Range project was issued on 9 January 2009, as conditions precedent under the Agreement had not been achieved. Lend Lease retains a first right of refusal to participate in the project if certain conditions are met by CSB.

Public Private Partnerships

Overview of Business

The PPP business consists of Actus in the US and the PPP projects in Europe.

Key Financial Results

The key financial results for the PPP business are summarised below.

	Revenue		EBITDA		Profit/(Loss) After Tax1
	June June		June	June	June	June
	2009	2008	2009	2008	2009	2008
	A\$m	A\$m	A\$m	A\$m	A\$m	A\$m
Americas	1,378.1	856.2	79.5	79.4	68.2	72.2
Europe	128.9	106.5	(12.8)	(33.4)	6.2	(13.2)
Total operating	1,507.0	962.7	66.7	46.0	74.4	59.0

1 June 2008 operating loss after tax of A\$13.2 million has been adjusted from an operating profit after tax of A\$0.8 million to reflect the impact of adopting AASB Interpretation 12 Service Concession Arrangements for the first time this year.

Public Private Partnerships – Americas

The primary focus of Actus is the Military Housing Privatization Initiative (MHPI) for all branches of the USA Military. Under the MHPI, Actus is selected to own, finance, construct and operate projects for a period of 50 years.

The key financial results for PPP – Americas are detailed below.

	June	June
	2009	2008
Profit after tax (A\$m)	68.2	72.2
Development gross profit margin (GPM) (A\$m)	24.5	46.7
Construction GPM (A\$m)	62.7	47.1
Asset management GPM (A\$m)	17.2	11.3
Equity returns (A\$m)	3.7	2.4
Number of projects1	19	19
Backlog (number of units under management)
− Operational (secured)	38,500	38,450
− Preferred bidder (awarded)	5,550	6,300
Total backlog	44,050	44,750

1 Number of projects includes extensions of existing projects and projects where Lend Lease is preferred bidder.

• − Decreased development fee income as no projects reached financial close in the year ended 30 June 2009. Development fees represent a fee for service and are not at risk from project performance;
• − Construction GPM and asset management GPM remain in line with the delivery programme;
• − Current market conditions have resulted in a reduction in the proposed scope of the Fort Wainwright and Fort Greely project and the Privatised Army Lodging project for which Actus is preferred bidder.

Public Private Partnerships continued

Public Private Partnerships – Americas continued

New Work Secured and Backlog GPM

	New Work Secured GPM June 20091 A\$m	New Work Secured GPM June 20081 A\$m	Backlog GPM June 20092,3 A\$m	Backlog GPM June 20082,3 A\$m
Projects in operational status (secured) Projects in preferred bidder status (awarded)4	64.0 (28.5)	165.2 (83.4)	431.0 52.1	382.3 65.2
Total	35.5	81.8	483.1	447.5

1 Total New Work Secured is the total project GPM to be earned from projects secured during the year, net of margin movements.

2 Backlog GPM disclosed includes ten years' backlog from facilities management even though the contracts run for up to 50 years.

3 Although Backlog GPM is realised over several years, the average foreign exchange rate for the current year has been applied to the closing Backlog GPM balance in its entirety as the average rates for later years cannot be predicted. In local currency the Backlog GPM is US\$352.7 million (June 2008: US\$402.8 million).

4 Projects in preferred bidder status include the GPM on projects that were awarded preferred bidder status in the year, offset by the GPM transferred from preferred bidder status to operational status following financial close of projects in the year.

Backlog GPM at 30 June 2009 was impacted by a positive movement in foreign exchange of A\$104.2 million.

Backlog GPM Realisation

	Year Ending June 2010 %	Year Ending June 2011 %	Post June 2011 %	Total %
Projects in operational status (secured) Projects in preferred bidder status (awarded)	24 22	15 19	61 59	100 100
Total	24	15	61	100

Public Private Partnerships – Europe

The PPP business in the UK is focused on four sectors: health, education, waste and accommodation. Under PPP schemes, Lend Lease is selected to own, finance, construct and operate projects for a period of up to 40 years. The PPP result includes asset management GPM, facilities management GPM, returns on equity, loan stock interest and net bid costs. The PPP result does not include construction GPM, which is included in Project Management and Construction.

The key financial results for PPP – Europe are detailed below.

	June 2009	June 20081
Profit/(loss) after tax (A\$m) Operating GPM (A\$m) Equity returns (A\$m)2	6.2 14.7 33.8	(13.2) 16.4 20.3
New Work Secured3	2.6	2.4
Number of projects4 Backlog GPM3,5	19 75.5	19 73.8
Equity
− Invested (\$Am)	163.3	147.9
− Committed (\$Am)	62.9	59.8

1 June 2008 operating loss after tax of A\$13.2 million has been adjusted from an operating profit after tax of A\$0.8 million to reflect the impact of adopting AASB Interpretation 12 Service Concession Arrangements for the first time this year.

2 Including loan stock interest.

3 Relates to secured projects.

4 Number of projects includes projects where Lend Lease is preferred bidder and combines extensions of existing projects.

5 Backlog GPM disclosed includes ten years backlog from facilities management even though PPP contracts run for longer periods of up to 40 years.

Public Private Partnerships continued

Public Private Partnerships – Europe continued

• − Achieving financial close of Lancashire Schools Phases 2A and 3, which related to the remaining schools of the £1.0 billion Lancashire Building Schools for the Future (BSF) project;
• − An increase in the number of operational assets, with the practical completion and operational handover of the three schools (£81.0 million) in Phase 1 of the Lancashire BSF project;
• − During the year UK PPP was selected as preferred bidder to deliver the £1.2 billion BSF project for the City of Birmingham, Europe's largest metropolitan council.

Investment Management

Overview of Business

The Investment Management business has A\$9.9 billion (June 2008: A\$9.3 billion) of funds under management (FUM). This business also includes investments held indirectly in property assets with a market value of A\$505.6 million (June 2008: A\$603.8 million).

Key Financial Results

The key financial results for the Investment Management business are summarised below.

		Revenue1		EBITDA	Profit/(Loss) After Tax
	June	June	June	June	June	June
	2009	2008	2009	2008	2009	2008
	A\$m	A\$m	A\$m	A\$m	A\$m	A\$m
Funds Management
Asia Pacific	48.9	55.4	18.1	15.7	13.3	11.2
Europe	4.6	52.4	(6.2)	41.7	(2.8)	41.9
Americas			(2.9)	1.1	(2.1)	1.0
Total	53.5	107.8	9.0	58.5	8.4	54.1
Investment Income2
Asia Pacific	11.6	12.1	17.4	66.7	13.8	60.6
Europe	3.2	3.8	8.1	22.5	5.9	20.0
Americas	0.8	3.6	0.8	3.5	0.8	2.6
Total	15.6	19.5	26.3	92.7	20.5	83.2
Total Operating
Asia Pacific	60.5	67.5	35.5	82.4	27.1	71.8
Europe	7.8	56.2	1.9	64.2	3.1	61.9
Americas	0.8	3.6	(2.1)	4.6	(1.3)	3.6
Total operating	69.1	127.3	35.3	151.2	28.9	137.3

1 Revenue excludes proceeds received from the sale of investments, redemption of available for sale financial assets and Lend Lease's share of profits from associates and joint ventures accounted for using the equity method.

2 Represents Lend Lease's share of income from investments net of direct expenses and allocated overhead, excluding property investment revaluations. There are no gains or losses on the disposal or redemption of available for sale financial assets in the year ended 30 June 2009 (June 2008: EBITDA and profit after tax included a gain of A\$67.0 million and A\$59.4 million respectively).

Unrealised property investment losses in relation to the Group's ownership interests in property investments held indirectly through investments in Lend Lease managed funds are excluded from operating profit but are included in the Group's statutory loss after tax.

Key trading events in the year include:

Asia Pacific

• − Profit after tax from Funds Management increased by A\$2.1 million to A\$13.3 million due to strong performance from both the Australian and Singapore platforms in a challenging market environment and reduced overheads;
• − Profit after tax from Investment Income decreased by A\$46.8 million to A\$13.8 million as the prior year included the sale of a proportion of the Group's investment in APPF for a profit after tax of A\$40.1 million and a profit contribution from Asia Pacific Investment Company Limited of A\$6.1 million, on the sale of the fund's last remaining asset;
• − In Australia, APPF Retail and APPF Industrial were the top two performing funds in the Mercer Unlisted Property Funds Index based on the gross one year return in the 12 month period ended 30 June 2009.

Europe

• − Profit after tax from Funds Management decreased by A\$44.7 million to a loss of A\$2.8 million this year as the prior year included the receipt of a tax exempt dividend of A\$47.9 million from the Group's interest in the advisor company to the Global Fund in relation to incentive fees;
• − Profit after tax from Investment Income decreased by A\$14.1 million to A\$5.9 million due to the prior year including profit distributions on the Group's investment in the Global Fund of A\$9.2 million after tax and profit on the sale of a proportion of the Group's investment in Cohen & Steers, SICAV of A\$3.6 million after tax.

Americas

− The loss after tax relates to the continued wind-up of the residual US Real Estate Investment business.

Investment Management continued

Funds Under Management

	Asia Pacific A\$b	Europe A\$b	Total June 2009 A\$b	Total June 2008 A\$b
FUM at the beginning of the financial year	7.1	2.2	9.3	8.9
Foreign exchange movement1	0.2		0.2	(0.3)
Additions	2.1		2.1	0.7
Reductions	(0.2)		(0.2)	(0.1)
Net revaluations	(0.7)	(0.8)	(1.5)	0.1
FUM at the end of the financial year2	8.5	1.4	9.9	9.3

1 Foreign exchange movement arising from translating opening FUM in local currency between June 2009 and June 2008.

2 FUM represents the gross market value of real estate and other related assets managed on behalf of investors.

FUM increased by A\$0.6 billion to A\$9.9 billion during the year. Asia Pacific FUM increased by A\$1.4 billion primarily due to the acquisition of the LLP management rights, while Europe FUM decreased by A\$0.8 billion due to net revaluation decreases in underlying asset values.

The movements in FUM in the year were:

Asia Pacific

• − Foreign exchange movements added A\$0.2 billion due to the restatement of opening FUM relating to Singapore at June 2009 exchange rates;
• − The acquisition of the LLP management rights added A\$1.5 billion in Australian and New Zealand based assets to FUM;
• − The LLCPF secured acquisition and capital expenditure growth of A\$0.2 billion;
• − The APPF series of funds and ARIF completed capital expenditure of A\$0.3 billion and A\$0.1 billion respectively;
• − The APPF series of funds disposed of A\$0.2 billion of property assets;
• − FUM declined by A\$0.7 billion as a result of net revaluation decreases on underlying asset values due to underlying real estate conditions.

Europe

− FUM declined by A\$0.8 billion as a result of net revaluation decreases on underlying asset values due to economic conditions in the UK.

Project Management and Construction

Key Financial Results

The key financial results for the Project Management and Construction business are summarised below.

		Revenue		Realised GPM		EBITDA		Profit/(Loss) After Tax1
	June	June	June	June	June	June	June	June
	2009	2008	2009	2008	2009	2008	2009	2008
	A\$m	A\$m	A\$m	A\$m	A\$m	A\$m	A\$m	A\$m
Asia Pacific	3,012.2	2,752.5	222.6	193.9	136.5	97.2	94.7	69.0
Americas Europe	6,027.2 3,382.6	6,011.5 3,662.8	213.4 208.9	206.1 184.9	52.6 62.5	70.0 34.5	35.2 39.0	59.7 21.3
Total operating	12,422.0	12,426.8	644.9	584.9	251.6	201.7	168.9	150.0

1 June 2008 operating profit after tax of A\$150.0 million has been adjusted from an operating profit after tax of A\$147.2 million to reflect the impact of adopting AASB Interpretation 12 Service Concession Arrangements for the first time this year.

Project Management and Construction profit after tax was A\$168.9 million, an increase of A\$18.9 million over the prior year. Profit after tax for the year was positively impacted by foreign exchange movements of A\$8.7 million.

Total revenue remained broadly in line with the prior year, including positive foreign exchange movements of A\$1.1 billion.

Key trading events in the year include:

Asia Pacific

− The Asia Pacific profit after tax of A\$94.7 million increased by A\$25.7 million compared with the prior year. Key contributions to GPM in Australia included the ANZ Head Office building in Melbourne, Sydney Water Desalination Pipeline, and Top Ryde shopping centre development in Sydney. In Asia, the telecommunications rollout in Japan, 313@Somerset retail development and REC solar panel plant in Singapore were key contributors during the year.

Americas

− Profit after tax for the Americas business of A\$35.2 million is an A\$24.5 million decrease on the prior year, including a positive foreign exchange movement of A\$6.6 million. Profit after tax was negatively impacted by costs relating to the fire at the former Deutsche Bank project in New York. Key contributions to GPM included the 155 N. Wacker Drive office development in Chicago, the 353 N. Clark office building project in Chicago and the Lenbrook high rise senior living project in Atlanta.

Europe

− The European profit after tax of A\$39.0 million increased by A\$17.7 million compared to the prior year. Performance improved although the business continues to be impacted by the workout of UK projects where loss provisions were taken in prior years. Key contributions to GPM included the Athletes' Village project for the 2012 Olympic Games in London, Peel Media City mixed-use project in Gloucester, Central Saint Giles new office development in London and the BP Global Alliance project across Europe.

Profitability Ratio

The profitability ratio (defined as EBITDA divided by realised GPM) increased from 34% to 39%, principally due to the higher profit contribution in Europe where the ratio increased from 19% to 30% this year and in Asia Pacific where the ratio increased by 11% to 61% (June 2008: 50%). In the Americas the profitability ratio decreased by 9% to 25% (June 2008: 34%) primarily due to costs relating to the fire at the former Deutsche Bank project in New York.

Project Management and Construction continued

New Work Secured and Backlog GPM

	New Work Secured GPM June 2009	New Work Secured GPM June 2008	Backlog GPM June 20091	Backlog GPM June 20081
	A\$m	A\$m	A\$m	A\$m
Asia Pacific Americas Europe	264.1 60.0 167.8	350.5 182.8 182.2	323.5 138.5 228.1	282.0 236.7 269.6
Total	491.9	715.5	690.1	788.3

1 Although Backlog GPM is realised over several years, the average foreign exchange rate for the current year has been applied to the closing Backlog GPM balance in its entirety as the average rates for later years cannot be predicted. In local currency, the Americas Backlog GPM was US\$101.1 million (June 2008: US\$213.0 million) and the European Backlog GPM was £107.2 million (June 2008: £121.3 million).

New Work Secured is the total project GPM to be earned from projects secured during the year, net of margin movements.

Backlog GPM is the expected GPM to be realised in future financial years from contracts committed at the end of the year. Backlog GPM at 30 June 2009 was impacted by a positive foreign exchange movement of A\$54.8 million. The decrease in Backlog GPM and New Work Secured GPM in 2009 is primarily due to the downturn in economic conditions, particularly in the Americas and Europe. The increase in Asia Pacific includes significant government projects secured in Australia, namely, Gold Coast University Hospital, two NSW Schools Building Education Revolution projects, Brisbane Supreme Court, Sydney Water Capital Works program, and a new office build project for the Federal Government.

Backlog GPM Realisation

	Year Ending June 2010	Year Ending June 2011	Post June 2011	Total
	%	%	%	%
Asia Pacific Americas	49 74	30 19	21 7	100 100
Europe	61	26	13	100
Total	58	27	15	100

As at 30 June 2009, 58% of Bovis Lend Lease Backlog GPM is projected to be realised in the year to June 2010. The proportion of Bovis Lend Lease secured Backlog GPM to be realised beyond 12 months of 42% is consistent with the prior year (June 2008: 43%).

Corporate

The key financial results for Corporate are summarised below.

	Revenue		EBITDA		Profit/(Loss) After Tax
	June	June	June	June	June	June
	2009	2008	2009	2008	2009	2008
	A\$m	A\$m	A\$m	A\$m	A\$m	A\$m
Group Services	23.4	7.6	(80.6)	(86.2)	(67.8)	(59.0)
Group Treasury	51.3	53.3	(17.2)	1.0	(41.4)	(14.8)
Group Amortisation					(4.1)	(3.0)
Total operating	74.7	60.9	(97.8)	(85.2)	(113.3)	(76.8)

Group Services

Group Services costs after tax increased by A\$8.8 million primarily due to costs in relation to Lend Lease Ventures, which is focused on the commercialisation of green energy opportunities and associated property related activities, and additional costs in the Group's captive insurance vehicle.

Group Treasury

Group Treasury manages the Group's liquidity, foreign exchange exposures, interest rate risk and debt. The result for the year is detailed in the table below.

	Profit/(Loss) Before Tax		Profit/(Loss) After Tax
	June June		June	June
	2009	2008	2009	2008
	A\$m	A\$m	A\$m	A\$m
Interest revenue Interest expense and borrowing costs Net hedge (cost)/benefit	51.3 (96.6) (17.2)	53.3 (78.2) 1.0	38.5 (67.1) (12.8)	37.9 (53.4) 0.7
Total Group Treasury	(62.5)	(23.9)	(41.4)	(14.8)

Interest Revenue and Expenses

• − Interest revenue remained relatively flat compared with the previous year. The interest rate on invested cash averaged 3.4% per annum for the year (June 2008: 6.1%);
• − Interest expense and borrowing costs before tax increased by A\$18.4 million compared with the previous year. This is mainly due to the Group's £350.0 million syndicated bank facility being fully drawn for part of the year.

Hedging and Foreign Exchange Exposure

• − Lend Lease hedges material foreign currency cash flows. Any foreign exchange gains or losses arising on the underlying cash flow or the hedging of business unit cash flows are allocated to the business unit's operating profit;
• − Lend Lease uses natural hedging, where possible, to minimise its exposure to foreign denominated net assets. The remaining net assets are hedged at the discretion of management. The impact of foreign exchange movements on the Group's net assets is accounted for in the Foreign Currency Translation Reserve (FCTR). In the year, the FCTR increased by A\$126.3 million, primarily due to movements in UK, US and Singapore exchange rates;
• − The A\$12.8 million after tax net hedge cost primarily relates to the hedging of a proportion of current year US dollar profits.

Group Liquidity

• − At 30 June 2009, the Group was in a strong liquidity position with cash and cash equivalents of A\$1,120.8 million and undrawn committed bank facilities of A\$612.0 million. The Group's net debt position as at 30 June 2009 was A\$195.8 million, this includes other non current financial liabilities of A\$191.6 million;
• − The average maturity of Lend Lease's drawn debt at 30 June 2009 was eight years, with the earliest maturity date being November 2010;
• − At 30 June 2009, the mix of borrowings, including other non current financial liabilities, was 76% at fixed rates and 24% at floating rates.

Appendix 1

Results Detail

		Revenue		EBITDA	Profit/(Loss) Before Tax1		Profit/(Loss) After Tax2,3
	June	June	June	June	June	June	June	June
	2009 A\$m	2008 A\$m	2009 A\$m	2008 A\$m	2009 A\$m	2008 A\$m	2009 A\$m	2008 A\$m
Retail
Asia Pacific	41.2	35.3	12.5	2.6	12.1	2.5	8.9	1.7
Europe	84.6	95.4	39.6	51.1	38.2	49.7	24.0	42.3
Americas			33.9	25.7	33.9	25.7	27.4	22.1
Total Retail	125.8	130.7	86.0	79.4	84.2	77.9	60.3	66.1
Communities
Asia Pacific	463.0	579.0	90.4	104.2	100.8	110.5	99.9	82.7
Europe	123.4	390.1	(18.8)	25.5	(13.6)	31.8	(10.4)	21.1
Americas		0.4	(1.6)	(5.7)	(2.0)	(5.9)	(1.2)	(3.5)
Total Communities	586.4	969.5	70.0	124.0	85.2	136.4	88.3	100.3
Public Private Partnerships
Europe	128.9	106.5	(12.8)	(33.4)	4.7	(21.8)	6.2	(13.2)
Americas	1,378.1	856.2	79.5	79.4	83.0	81.8	68.2	72.2
Total Public Private Partnerships	1,507.0	962.7	66.7	46.0	87.7	60.0	74.4	59.0
Investment Management
Asia Pacific	60.5	67.5	35.5	82.4	35.2	82.3	27.1	71.8
Europe	7.8	56.2	1.9	64.2	1.9	64.2	3.1	61.9
Americas	0.8	3.6	(2.1)	4.6	(2.1)	4.6	(1.3)	3.6
Total Investment Management	69.1	127.3	35.3	151.2	35.0	151.1	28.9	137.3
Project Management and Construction
Asia Pacific	3,012.2	2,752.5	136.5	97.2	133.9	95.0	94.7	69.0
Europe	3,382.6	3,662.8	62.5	34.5	57.0	30.5	39.0	21.3
Americas	6,027.2	6,011.5	52.6	70.0	47.2	65.9	35.2	59.7
Total Project Management and Construction 12,422.0 12,426.8			251.6	201.7	238.1	191.4	168.9	150.0
Total operating businesses		14,710.3 14,617.0	509.6	602.3	530.2	616.8	420.8	512.7
Corporate
Group Services	23.4	7.6	(80.6)	(86.2)	(82.5)	(88.9)	(67.8)	(59.0)
Group Treasury	51.3	53.3	(17.2)	1.0	(62.5)	(23.9)	(41.4)	(14.8)
Group Amortisation					(4.1)	(3.0)	(4.1)	(3.0)
Total corporate	74.7	60.9	(97.8)	(85.2)	(149.1)	(115.8)	(113.3)	(76.8)
Total operating		14,785.0 14,677.9	411.8	517.1	381.1	501.0	307.5	435.9
Inventory carrying value adjustments			(226.1)	(121.5)	(226.1)	(121.5)	(188.3)	(121.5)
Goodwill impairments			(252.9)		(252.9)		(252.9)
Other carrying value adjustments			(233.0)		(233.0)		(204.7)
Property investment revaluations4			(325.7)	(69.2)	(325.7)	(69.2)	(263.0)	(60.2)
Savings implementation costs Net gain on Bovis UK pension scheme			(120.8)		(120.8)		(83.9)
curtailment			44.3		44.3		31.7
Total statutory		14,785.0 14,677.9	(702.4)	326.4	(733.1)	310.3	(653.6)	254.2

1 Profit/(loss) before tax is before adjusting for the amount attributable to minority interests.

2 June 2008 operating profit after tax has been adjusted to A\$435.9 million (statutory profit has been adjusted to A\$254.2 million) to reflect the impact of adopting AASB Interpretation 12 Service Concession Arrangements for the first time this year. The before and after tax effect of the adjustment for the year ended June 2008 is an A\$11.2 million loss.

3 Profit/(loss) after tax is after adjusting for the loss attributable to minority interests of A\$12.3 million (June 2008: A\$6.4 million loss after tax).

4 Represents unrealised revaluations on property investments that are consolidated or accounted for using the equity method in the Consolidated Financial Statements.

Appendix 2

Operating Results Detail in Local Currency1

		Revenue		EBITDA	Profit/(Loss) Before Tax2		Profit/(Loss) After Tax3
	June	June	June	June	June	June	June	June
	2009 A\$m	2008 A\$m	2009 A\$m	2008 A\$m	2009 A\$m	2008 A\$m	2009 A\$m	2008 A\$m
Asia Pacific
Retail	41.2	35.3	12.5	2.6	12.1	2.5	8.9	1.7
Communities	463.0	579.0	90.4	104.2	100.8	110.5	99.9	82.7
Investment Management	60.5	67.5	35.5	82.4	35.2	82.3	27.1	71.8
Project Management and Construction	3,012.2	2,752.5	136.5	97.2	133.9	95.0	94.7	69.0
Group Services and Amortisation	23.4	7.6	(80.6)	(86.2)	(86.6)	(91.9)	(71.9)	(62.0)
Group Treasury	45.7	38.5	(12.3)	5.0	32.9	43.1	24.8	31.0
Total Asia Pacific	3,646.0	3,480.4	182.0	205.2	228.3	241.5	183.5	194.2
		Revenue		EBITDA	Profit/(Loss) Before Tax2		Profit/(Loss) After Tax3
	June 2009	June 2008	June 2009	June 2008	June 2009	June 2008	June 2009	June 2008
	£m	£m	£m	£m	£m	£m	£m	£m
Europe
Retail Communities	39.8 58.0	42.9 175.5	18.6 (8.8)	23.0 11.5	18.0 (6.4)	22.4 14.3	11.3 (4.9)	19.0 9.5
Public Private Partnerships	60.6	47.9	(6.0)	(15.0)	2.2	(9.8)	2.9	(6.0)
Investment Management	3.7	25.3	0.9	28.9	0.9	28.9	1.5	27.9
Project Management and Construction	1,589.8	1,648.3	29.4	15.5	26.8	13.7	18.3	9.6
Group Treasury	2.0	4.8	(2.3)	(1.9)	(34.3)	(23.4)	(24.7)	(16.4)
Total Great British Pounds	1,753.9	1,944.7	31.8	62.0	7.2	46.1	4.4	43.6
Total Australian Dollars4	3,731.7	4,321.6	67.6	137.9	15.3	102.6	9.3	97.0
		Revenue		EBITDA	Profit/(Loss) Before Tax2		Profit/(Loss) After Tax3
	June	June	June	June	June	June	June	June
	2009 US\$m	2008 US\$m	2009 US\$m	2008 US\$m	2009 US\$m	2008 US\$m	2009 US\$m	2008 US\$m
Americas
Retail			24.7	23.1	24.7	23.1	20.0	19.9
Communities		0.4	(1.2)	(5.1)	(1.5)	(5.3)	(0.9)	(3.2)
Public Private Partnerships	1,006.0	770.6	58.0	71.5	60.6	73.6	49.8	65.0
Investment Management Project Management and Construction	0.6 4,399.9	3.2 5,410.4	(1.5) 38.4	4.1 63.0	(1.5) 34.5	4.1 59.3	(0.9) 25.7	3.2 53.7
Group Treasury	0.8	3.7			(16.4)	(13.6)	(10.0)	(8.4)
Total US Dollars	5,407.3	6,188.3	118.4	156.6	100.4	141.2	83.7	130.2
Total Australian Dollars4	7,407.3	6,875.9	162.2	174.0	137.5	156.9	114.7	144.7

1 Local currency results exclude foreign exchange movements other than Great British Pounds and US Dollars.

2 Profit/(loss) before tax is before adjusting for the amount attributable to minority interests.

3 Profit/(loss) after tax is after adjusting for the loss attributable to minority interests of A\$12.3 million (June 2008: A\$6.4 million loss after tax).

4 The foreign exchange rates applied are A\$1 = £0.47 (June 2008: A\$1 = £0.45) and A\$1 = US\$0.73 (June 2008: A\$1 = US\$0.90).

Inv tm ts. es en	1
Inv est nts Re ort d in Re ta i l me p e	1
Inv Re d in Inv Ma est nts ort est nt t me p e me na g em en	2
Re i l ta	3
Ov iew erv	3
As Un de Ma set t s r na g em en	4
De lop P ip l ine nt ve me e	5
Co it ies mm un Ov iew	6 6
erv Co it ies As ia Pa i f ic. mm un c	7
– Se ior L iv ing n	1 0
Co it ies Eu mm un rop e –	1 1
Co it ies Am ica mm un er s . –	1 2
l Pr h	1
Pu b ic iva Pa ip te rtn ers s . Ov iew erv	3 1 3
Pu b l ic Pr iva Pa h ip Am ica te rtn ers s – er s	1 4
Pu b l ic Pr iva Pa h ip Eu te rtn ers s – rop e .	1 6
Inv Ma tm t t es en na g em en	1 8
Fu ds Un de Ma t n r na g em en	1 8
Co Pro j t Ma t a d tru ct ion ec na g em en n ns	1 9
Ma j Pro j ts. or ec	1 9
Re l ise d Gr Pro f it Ma in An ly is by Se cto a os s rg a s r	2 3

Investments

Investments Reported in Retail

	Reg ion	Len d L eas e Inte t res %	Len d L e S har eas e 1 of I nco me Jun e 2 009 A\$ m	Len d L e S har eas e 1 of I nco me Jun e 2 008 A\$ m	2 Ma rke t Va lue Jun e 2 009 A\$ m	2 Ma rke t Va lue Jun e 2 008 A\$ m	Ind icat ive Fun d Liq uid atio n
As ia Pa i f ic c
Pa ke ha P lac n m e	Au l ia str a	25 0	0. 8	0. 8	1 0. 8	1 4. 4	/a n
Cr ig ie bu a rn	Au l ia str a	25 0			1 1. 3	1 8. 2	/a n
Po Mo ( for ly Pa d iz Ce ) ntr me r ra e	As ia	25 0	0. 1	0. 1	7. 2	6. 6	/a n
@ So 3 1 3 t me rse	As ia	3 25 0			5 6. 8	4 3. 6	/a n
Ot he /a l loc d o he d ate r ve r a				( 0. 3 )
To l As ia Pa i f ic ta c			0. 9	0. 6	8 6. 1	8 2. 8
4 Eu rop e
B lue 5 ter wa	U K	3 0. 0	5 3. 7	5 8. 5	8 1 4. 3	1, 1 8 8. 8	/a n
Pe for Re ta i l L im ite d Pa rtn h ip r ma nc e ers	U K	3 3. 3	3. 8	3. 1	4 8. 2	8 0. 1	2 0 17
6 Wa ing Re i l L im ite d Pa h ip ton ta rtn rr ers	U K	5 0. 0	( 1. 4 )	0. 3		8 3. 1	2 0 17
7 C he lms for d Me do Un it Tru st a ws	U K	0 75	8. 1	9. 9	8 2. 2	1 2 6. 9	/a n
Pre T it he ba Un it Tru sto st n rn	U K	0. 0 5		3 1.	6. 3	3 3. 1	2 0 9 1
Ot /a he l loc ate d o he d r ve r a			( ) 5. 5	( ) 3. 7
To ta l Eu rop e			5 8. 7	6 9. 4	9 5 1. 0	1, 5 1 2. 0
8 Am ica er s
K ing f Pru ia o ss	U S A	0. 0 5	3 3. 9	25 .7	4 27 0	4 2 1.7	/a n
To l Am ica ta er s			3 3. 9	25 .7	4 27 0	4 2 1.7
To l Re i l ta ta			9 3. 5	9 5. 7	1, 4 6 4. 1	2, 0 1 6. 5

1Represents Lend Lease's share of income before tax from investments net of direct expenses and allocated overhead, excluding property investment revaluations.

2Market value is based on independent valuations and is net of project-specific debt.

3 Lend Lease owns 25% of the 313@Somerset retail development directly, with the remaining 75% held by Lend Lease Asian Retail Investment Fund (ARIF) in which Lend Lease holds a 10.1% interest (reported in Investment Management).

4The market value of UK assets has been translated at A\$1 = £0.49 (June 2008: A\$1 = £0.48) and the Lend Lease share of income at A\$1 = £0.47 (June 2008: A\$1 = £0.45).

5 The independent market value at 30 June 2009 of 100% of Bluewater was £1,330.0 million (A\$2,714.3 million). Bluewater is treated as inventory in the financial statements and is therefore reflected at cost, which at 30 June 2009 was A\$506.2 million.

6The market value of the Warrington Retail Limited Partnership net assets were below zero at 30 June 2009 and as a result the Lend Lease's investment has been written down to nil.

7The Chelmsford Meadows Unit Trust is consolidated in the financial statements, with 100% of the underlying property asset being recognised as an investment property at a book value of A\$109.6 million.

8The market value of USA assets has been translated at A\$1 = US\$0.81 (June 2008: A\$1 = US\$0.95) and the Lend Lease share of income at A\$1 = US\$0.73 (June 2008: A\$1 = US\$0.90).

Portfolio Report June 2009 Lend Lease Corporation

Portfolio Report

Investments continued

Investments Reported in Investment Management

	Reg ion	Len d L eas e Inte t res %	e S Len d L har eas e 1 of I nco me Jun e 2 009 A\$ m	e S Len d L har eas e 1 of I nco me Jun e 2 008 A\$ m	2 Ma rke t Va lue Jun e 2 009 A\$ m	2 Ma rke t Va lue Jun e 2 008 A\$ m	Ind icat ive Fun d Liq uid atio n
As ia Pa i f ic c
Au l ian Pr im Pro Fu ds str ert a e p n y	Au l ia str a	3 Va iou r s	1 0. 0	5 7. 4	1 9 9. 0	2 0 7.5	Op de d en en
Re l Es Pa h ip Fu ds tat rtn a e ers n	Au l ia str a	0. 0 1		( 0. ) 4	6 5.	6 5.	2 0 1 1
Le d Le Co P lus Fu d n as e re n	Au l ia str a	1 0. 5	1. 6	0. 9	45 2	3 8. 2	Op de d en en
Co Le d Le it ies Fu d 1 n as e mm un n	Au l ia str a	2 0. 8	( ) 0. 5	0. 3	9. 8	2 3. 8	2 0 1 2
As ia Pa i f ic Inv Co L im ite d est nt c me mp an y	As ia			5. 2			2 0 0 9
As ia Pa i f ic Inv Co No 2 L im ite d est nt c me mp an y	As ia	2 1. 1	6. 7	4. 4	0 8. 8 1	0 1 7. 1	2 0 2 1
Le d Le As ian Re ta i l Inv est nt Fu d n as e me n	As ia	4 1 0. 1			1 8. 7	1 4. 2	Op de d en en
Le d Le Int ion l D istr d De bt Fu d at n as e ern a es se n	As ia	2 8. 0	( 0. 4 )	( 1. 1 )		0. 8	2 0 1 0
To ta l As ia Pa i f ic c			17 4	6 6. 7	3 8 7. 1	3 9 7. 2
5 Eu rop e
6 Le d Le Re i l Pa h ip ta rtn n as e ers	U K	3. 9 5	2.7	3. 0	4 3. 5	6 2.7	2 0 1 1
7 Le d Le Ov Pa h ip ate rtn n as e erg ers	U K	3 0. 7	4. 9	6 5.	6 2.7	1 1 4. 0	2 0 1 1
Le d Le G lo ba l Pro ies S I C A F ert n as e p ,	Eu rop e	2 4. 8		9. 5	2. 8	15 .5	2 0 1 0
Co Ste S C he & I A V n ers ,	Eu rop e		0. 5	4. 4	9. 2	1 3. 5	Op de d en en
To ta l Eu rop e			8. 1	2 2.5	1 1 8. 2	2 0 5. 7
8 Am ica er s
Ot he /a l loc d o he d ate r ve r a	U S A		0. 8	3. 5	0. 3	0. 9
To ta l Am ica er s			0. 8	3. 5	0. 3	0. 9
To l Inv Ma ta tm t t es en na g em en			2 6. 3	9 2.7	5 0 5. 6	6 0 3. 8
To l Inv ta tm ts es en			1 1 9. 8	1 8 8. 4	1, 9 6 9. 7	2, 6 2 0. 3

1 Represents Lend Lease's share of income before tax from investments net of direct expenses and allocated overhead, excluding property investment revaluations. There are no gains or losses on the disposal or redemption of available for sale financial assets in the year ended 30 June 2009 (June 2008: A\$53.9 million gain in Asia Pacific and A\$13.1 million gain in Europe).

2Market value is based on independent valuations and is net of project-specific debt.

3Lend Lease holds varying proportional interests in the Australian Prime Property Funds (APPF). On 11 July 2007, Lend Lease sold a proportion of its interest in APPF for a profit after tax of A\$40.1 million.

4Lend Lease owns 25% of the 313@Somerset retail development directly (reported in Retail), with the remaining 75% held by ARIF in which Lend Lease holds a 10.1% interest.

5The market value of UK assets has been translated at A\$1 = £0.49 (June 2008: A\$1 = £0.48) and the Lend Lease share of income at A\$1 = £0.47 (June 2008: A\$1 = £0.45).

6Fund life is periodically extended for four years, unless investors elect otherwise. If fully extended, the Lend Lease Retail Partnership has a 40-year life ending in 2039.

7In January 2009, investors elected to wind down the Fund over a two year period.

8The market value of USA assets has been translated at A\$1 = US\$0.81 (June 2008: A\$1 = US\$0.95) and the Lend Lease share of income at A\$1 = US\$0.73 (June 2008: A\$1 = US\$0.90).

Retail

Overview

	Au	stra lia	Sin	gap ore		UK	Tot	al
	Jun e	Jun e	Jun e	Jun e	Jun e	Jun e	Jun e	Jun e
	200 9	20 08	200 9	20 08	200 9	20 08	200 9	20 08
As t Ma t se na g em en
Nu be f c tre m r o en s	9	9	2	2	5	5	1 6	1 6
\$m As de ( A ) set t s u n r m an ag em en	4, 1 45 3	4, 3 9 0. 3	8 77 .7	8 3 6. 6	3, 6 9 3. 7	5, 5 6 6. 0	8, 7 1 6. 7	1 0, 7 9 2. 9
1 u G L A de ( ( ) / 0 0 0s ) t tre n r m an ag em en sq ua re me s sq m	3 3. 3 5	3 3. 3 5	6 9. 4	6 6. 4	3 3 6. 7	3 3 1. 4	9 3 9. 4	9 3 1. 1
De lop P ip l ine nt ve me e
Nu be f c tre m r o en s	6	7	1	2	3	3	1 0	1 2
Cu l G L A ( / 0 0 0s ) nt tot rre a sq m	17 9. 3	1 9 1 5.		1 6. 7	1 8. 7	1 4.5	1 9 8. 0	2 2 6. 3
\$m Gr ( ) st im ate d de lop nt st A os s e ve me co	1, 9 2 0	1, 9 25	8 3 0	77 5	1, 9 0 5	2, 0 6 0	4, 6 5 5	4, 7 6 0
Es ima d a d d it ion l G L A ( / 0 0 0s ) t te a sq m	1 9 8. 0	2 0 1. 0	2 8. 1	2 8. 5	2 3 2.7	2 3 6. 9	45 8. 8	4 6 6. 4

1GLA represents the gross lettable area of the centres.

Retail continued

Assets Under Management

Sho ing Ce ntre pp s	Ma ed Beh alf of nag on	1 GL A /00 0s sqm			2 Ma rke t Va lue Jun e 2 009 A\$ m	2 Ma rke t Va lue Jun e 2 008 A\$ m
As ia Pa i f ic c
Ca Ce Q irn l, l d ntr s a	/ Ot Ow A P P F Re i l he Jo int ta r ne rs	5 2. 8
Ca lan d Ce l, Q l d ntr ne a	A P P F Re i l ta	3 9. 3
Su h ine P laz Q l d ns a,	A P P F Re i l / Ot he Jo int Ow ta r ne rs	3. 3 7
S Er ina Fa ir, N W	/ Ot Ow A P P F Re ta i l he Jo int r ne rs	1 0 6. 8			4, 1 45 3	4, 3 9 0. 3
Ma hu Sq N S W rt ca r ua re,	A P P F Re i l / Ot he Jo int Ow ta r ne rs	9 3. 5
Gr bo h P laz V ic ee ns rou g a,	A P P F Re i l ta	5 8. 2
Ca l ine Sp ing Sq V ic ro r s ua re,	A P P F Re i l / Le d Le Co P lus Fu d ta n as e re n	8. 5
Pa ke ha P lac V ic n m e,	/ Co A P P F Re ta i l Le d Le t ion n as e rp ora	15 8
In do i l ly, Q l d oro op	Ot he Ow r ne rs	8 5. 1
3 Pa kw Pa de S ing ay ra ap ore r ,	As ia Pa i f ic Inv Co No 2 L im ite d est nt c me mp an y	2.5 5			4 2.7 7	17 1 7
3 Po Mo ( for ly Pa d iz Ce ), S ing ntr me r ra e ap ore	Le d Le Co ion / Ot he Jo int Ow t n as e rp ora r ne rs	1 6. 9			1 3 5. 0	1 1 9. 5
To l As ia Pa i f ic ta c		6 0 2.7			0 2 3. 0 5,	2 2 6. 9 5,
Sho Ce ing ntre pp s	Ma ed Beh alf of nag on	1 GL A /00 0s sqm	2 Ma rke t Va lue Jun e 2 009 £m	2 Ma rke t Va lue Jun e 2 008 £m	2 Ma rke t Va lue Jun e 2 009 A\$ m	2 Ma rke t Va lue Jun e 2 008 A\$ m
Un ite d K ing do m
B lue Ke ter nt wa ,	Le d Le Re i l Pa h ip / Le d Le Co ion ta rtn t n as e ers n as e rp ora	15 3. 9	1, 3 3 0. 0	1, 9 0 2. 0	2, 7 1 4. 3	3, 9 6 2.5
Ov ate Du de erg n e ,	Ov Le d Le ate Pa rtn h ip n as e erg ers	3 9. 0	1 0 1.5	17 8. 0	2 0 7. 1	3 7 0. 8
To hw d, So l i hu l l uc oo	Le d Le Re i l Pa h ip ta rtn n as e ers	6 0. 4	2 0 0. 0	2 8 0. 0	4 0 8. 2	5 8 3. 3
Go l de Sq Wa ing ton n ua re, rr	Wa ing Re i l Un it Tru ton ta st rr	6 8. 9	1 2 4.7	2 3 0. 5	25 4.5	4 8 0. 2
C T he Me do he lms for d a ws ,	C he lms for d Me do Un it Tru st a ws	1 4.5	5 3. 7	8 1. 2	1 0 9. 6	1 6 9. 2
To l Un ite d K ing do ta m		3 3 6. 7	1, 8 0 9. 9	2, 6 7 1.7	3, 6 9 3. 7	5, 5 6 6. 0
To ta l a ets de t ss un r m an ag em en		9 3 9. 4	–	–	8, 7 1 6. 7	1 0, 7 9 2. 9

1GLA represents the gross lettable area of the centres.

2Market value represents Lend Lease's assessment of the value of the underlying assets.

3Market value for Singapore assets in local currency is S\$1,026.9 million (June 2008: S\$1,079.2 million).

Retail continued

Development Pipeline

						Est ima ted		Est ima ted Gro ss
		Ow shi ner p		Est ima ted	Cu t rren	Ad diti l ona		Dev elo ent pm
		Inte t res	Pro jec t	Co letio mp n	2 GL A	2,3 GL A		3 Co st
Sho ing Ce ntre pp s	Ma ed Beh alf of nag on	%	Sta tus	1 Da te	/00 0s sqm	/00 0s sqm		A\$ m
As ia Pa i f ic c
	Le d Le Co ion / Le d Le Ma d t n as e rp ora n as e na g e
Au l ia str a	/ Ot Ow Fu ds he Jo int n r ne rs	Va iou 4 r s	Va iou r s	2 0 1 0– 2 0 1 4	17 9. 3	1 9 8. 0		1, 9 2 0
	Le d Le As ian Re i l Inv Fu d / Le d ta est nt n as e me n n		Un de r
3 1 3 @ So t me rse	Le Co ion t as e rp ora	5 Va iou r s	ion nst t co ruc	2 0 1 0		2 8. 1		8 3 0
To l As ia Pa i f ic ta c					17 9. 3	2 2 6. 1		2, 0 75
						Est ima ted	Est ima ted Gro	Est ima ted Gro
		Ow shi ner p		Est ima ted	Cu t rren	Ad diti l ona	ss Dev elo ent pm	ss Dev elo ent pm
		Inte t res	Pro jec t	Co letio mp n	2 GL A	2,3 GL A	3 Co st	3 Co st
Sho Ce ing ntre pp s	Ma ed Beh alf of nag on	%	Sta tus	1 Dat e	/00 0s sqm	/00 0s sqm	£m	A\$ m
Un ite d K ing do m
B lue ter Ev ts Ve Ke nt wa en nu e,	Le d Le Re ta i l Pa rtn h ip n as e ers	3 1. 0	Ap d p rov e	2 0 1 0	4. 2	6. 1	6 0	1 25
T he Me do C he lms for d a ws ,	C he lms for d Me do Un it Tru st a ws	75 0	P lan ing n	2 0 15	1 4.5	8 7. 3	4 3 0	8 8 0
T it he ba Pre sto rn, n	Pre T it he ba Un it Tru sto st n rn	0. 0 5	P lan ing n	2 0 15		1 3 9. 3	4 4 0	9 0 0
To l Un ite d K ing do ta m					1 8. 7	2 3 2.7	9 3 0	1, 9 0 5
To l de lop ip l ine ta nt ve me p e					1 9 8. 0	45 8. 8	–	4, 6 5 5

1Estimated completion date represents the financial year in which the development is expected to be completed.

2GLA represents the gross lettable area of the centres.

3Estimated additional GLA and gross development cost are dependent on future planning approvals and are subject to commercial feasibility and approvals from joint venture partners.

4Lend Lease holds an indirect interest through its investment in APPF.

5Lend Lease owns 25% of the 313@Somerset retail development directly, with the remaining 75% held by ARIF in which Lend Lease holds a 10.1% interest.

Communities

Overview

	Asi a P	acif ic	UK		US	A	Tot	al
	Jun e 200 9	Jun e 20 08	Jun e 200 9	Jun e 20 08	Jun e 200 9	Jun e 20 08	Jun e 200 9	Jun e 20 08
1,2 Nu be f p j ts m r o ro ec	3 9	47	27	27	1	2	6 7	7 6
3 Ba k log c
4 Zo d ( it h p lan ing ls ) ne n ap p rov a w −	2 6, 7 9 0	27 0 9 0 ,	1 3, 1 15	1 3, 5 2 0	3, 8 5 5	3, 7 6 0	4 3, 7 6 0	4 4, 3 7 0
Un d ( it ing lan ing ls ) zo ne aw a p n ap p rov a −	8, 0 0 5 5	8, 2 0 5 4	27 5	9 0 5		3, 3 6 1 5	8, 2 8 0 5	2, 7 5 5 5
Re i de ia l ( its ) nt s un	8 4, 9 7 5	8 3 3 0 5,	1 3, 3 9 0	1 4, 47 0	3, 8 5 5	17 1 25 ,	1 0 2, 0 4 0	1 1 6, 9 25
5 Co ia l ( / 0 0 0s ) mm erc sq m	3, 47 8. 7	3, 2 2 8. 8	4 1 0. 1	4 2 2. 6	8 4 1. 3	1, 3 8 2.7	4, 7 3 0. 1	5, 0 3 4. 1

1The number of projects in Asia Pacific excludes 61 retirement villages and 33 aged care facilities held by Lend Lease Primelife Limited (LLP).

2 The number of projects in the UK includes Stratford and Elephant and Castle. Elephant and Castle is still under negotiation so is not included in the backlog metrics above. Stratford is progressing on a fee based arrangement and therefore is excluded from the backlog metrics.

3Backlog includes both company-owned, joint venture and managed projects.

4This excludes the backlog for LLP retirement villages and aged care facilities.

5Represents net developable area of the project site.

Communities continued

Communities – Asia Pacific – Project Listing

Su bto l zo d ta ne				3 1, 0 9 5	1 6, 5 0 0	3, 3 3 5	1, 0 0 4.7
E dg ate ew r	V ic	1 0 0 %	2 0 1 2	1, 1 45	5	9 0
Sp ing ba k R ise ( for ly Ca 2 ) r n me r sey	A C T	5 0 % J V / La d m t n an ag em en	2 0 15	1, 1 0 0	1, 1 0 0
Fo de r	A C T	% J V / La d m 25 t n an ag em en	2 0 1 0	1, 0 3 0	4 3 5	1 6 0	2. 3
Da l ing Wa l k r	N S W	De lop nt t ve me ma na g em en	2 0 1 1				6 4. 0
St Pa ic ks tr	N S W	5 0 % J V / La d m t n an ag em en	2 0 1 0	1 4 0		6 5
Ro H i l l us e	S N W	% / 5 0 J V La d m t n an ag em en	2 0 1 8	1, 9 3 0	4 2 0	1, 0 9 0	9 8. 8
Ja kso La d ing c ns n	N S W	% J V 5 0	2 0 1 1	1, 3 7 0		3 0 0	15 .7
Ne lso R i dg ns e	N S W	La d m t n an ag em en	2 0 15	9 2 0	27 5	3 0 5	2. 6
4 St Ma Ro Cr ing ry s – p es os s	N S W	La d m t n an ag em en	2 0 15	1, 5 9 0	1, 3 2 0	17 0
St Ot Ma he Pre inc ts ry s – r c	S N W	% 1 0 0	2 0 1 8	3, 6 45	3, 6 45		5 7 4. 9
B ing Go ara rg e	N S W	La d m t n an ag em en	2 0 2 2	1, 1 6 5	1, 1 25		9 7. 9
Tw in Wa Re i de ia l ter nt s s	Q l d	1 0 0 %	2 0 1 0	1, 7 6 5		5
Co Hy lum att o	Q l d	1 0 0 %	2 0 1 4	5 0 0	1 9 5	2 2 0
Sp ing f ie l d La kes r	Q l d	La d m t n an ag em en	2 0 2 0	1 0, 0 0 0	6, 9 7 0	7 15	1 2 2. 1
Va ity La kes rs	Q l d	La d m t n an ag em en	2 0 1 1	8 25 1,	9 5	9 0	2 6. 4
Fo Ga de t res r ns	Q l d	5 0 % J V / La d m t n an ag em en	2 0 1 1	1, 5 7 0	1 6 0
4 Wo d lan ds o	Q l d	La d m t n an ag em en	2 0 1 2	1, 4 0 0	75 5	8 0
Zo d Pro j ts ne ec
Pro jec t	Loc atio n	Ow shi Inte t ner p res	1 Da te	2 Un its	3 Un its	3 Un its	g /00 0s sqm
			Est ima ted Co letio mp n	Tot al	Bac klo g Lan d	Bac klo g Bui lt-F orm	Est ima ted Co ial mm erc Bac klo

1Estimated completion date represents the estimated financial year of the last unit settled for master-planned communities and the construction completion date for apartments.

2Represents residential and non-residential units and built-form dwellings forecast to be completed by the end of the project.

3Backlog includes the total number of units in both company-owned, joint venture and managed projects. The actual number of units for any particular project can vary as planning applications are obtained.

4Projects managed on behalf of the Lend Lease Communities Fund 1.

Communities continued

Communities – Asia Pacific – Project Listing continued

Pro jec t	Loc atio n	Ow shi Inte t ner p res	Est ima ted Co letio mp n 1 Dat e	Tot al 2 Un its	Bac klo g Lan d 3 Un its	Bac klo g Bui lt-F orm 3 Un its	Est ima ted Co ial mm erc Bac klo g /00 0s sqm
Zo d Pro j inu d ts nt ne ec co e
Cr ig ie bu To Ce ntr a rn wn e	V ic	1 0 0 %	2 0 1 1	2 9 5	2 3 5
La ke i de Pa ke ha 4 at s n m	V ic	La d m t n an ag em en	2 0 1 0	2, 3 5 0	6 0
Pa ke ha Va l ley n m	V ic	La d m t n an ag em en	2 0 1 2	5 75	5 4 0	15	3 4.7
Ca l ine Sp ing ro r s	V ic	5 0 % J V / La d m t n an ag em en	2 0 1 2	7, 4 8 0	75 5	17 0	1 2.7
La im ur ar	V ic	1 0 0 %	2 0 1 4	1, 8 0 7	1, 3 0 5		8. 0
V icto ia Ha bo r r ur
Do k 5 c −	V ic	% 1 0 0	2 0 0 9	1 4 0			2. 0
T he Me ha nt rc −	V ic	1 0 0 %	2 0 1 0	75		75	0. 6
Mo nta g e −	V ic	0 0 % 1	2 0 0 9	8 5		0 1
A N Z −	V ic	De lop nt t ve me ma na g em en	2 0 1 0				8 4.7
Me ha Str Re i l nt t ta rc ee −	V ic	1 0 0 %	2 0 1 1				4. 0
My er −	V ic	De lop nt t ve me ma na g em en	2 0 1 0				2 9. 1
Un itte d Ot he co mm r −	V ic	Ot he r	Va iou r s	0 1, 7 4		0 1, 7 4	8 8 5.
Cr B la ke ing s os s	S A	Sta d a is it ion g e cq u	2 0 15	1, 3 9 0	1, 2 15	1 0 0	5 5. 7
Ma La ke ws on s	S A	5 0 % J V / La d m t n an ag em en	2 0 1 1	4, 8 9 0	2 2 0	1 0 0	4 3. 7
To ta l zo d ne				5 1, 9 8 5	2 0, 8 3 0	5, 5 45	1, 3 6 5. 7

1Estimated completion date represents the estimated financial year of the last unit settled for master-planned communities and the construction completion date for apartments.

2Represents residential and non-residential units and built-form dwellings forecast to be completed by the end of the project.

3Backlog includes the total number of units in both company-owned, joint venture and managed projects. The actual number of units for any particular project can vary as planning applications are obtained.

4Projects managed on behalf of the Lend Lease Communities Fund 1.

Communities continued

Communities – Asia Pacific – Project Listing continued

Pro jec t	Loc atio n	Ow shi Inte t ner p res	Tot al 1 Un its	Bac klo g Lan d 2 Un its	Bac klo g Bui lt-F orm 2 Un its	Est ima ted Co ial mm erc Bac klo g /00 0s sqm
Un d Pro j ts zo ne ec
Ya b i l ba rra	Q l d	Sta d a is it ion g e cq u	2 3, 4 0 0	2 0, 3 3 0	3, 0 7 0	8 77 0
Ro ky Sp ing c r s	Q l d	La d m t n an ag em en	1 3, 0 0 0	1 2, 45 0	5 5 0	5 4 8. 0
R N A S ho ds wg rou n	Q l d	La d m t n an ag em en	1, 8 5 5		1, 8 5 5	1 4 0. 0
Ca l de d rw oo	N S W	La d m t n an ag em en	4, 0 0 0	4, 0 0 0		5. 0
Lo ke b ie c r	V ic	Sta d a is it ion g e cq u	1 3, 0 0 0	7, 8 6 0	5, 1 4 0	4 9 0. 0
Ga ler w	S A	1 0 0 %	2, 75 0	2, 75 0		5 3. 0
To l u d ta nz on e			5 8, 0 0 5	47 3 9 0 ,	1 0, 6 15	2, 1 1 3. 0
To l ta			1 0 9, 9 9 0	6 8, 2 2 0	1 6, 1 6 0	3, 47 8. 7

1Represents residential and non-residential units and built-form dwellings forecast to be completed by the end of the project.

2Backlog includes the total number of units in both company-owned and joint venture projects. The actual number of units for any particular project can vary as planning applications are obtained.

Communities continued

Senior Living – Project Listing

		Dw ellin Und er M ent gs ana gem	Dw ellin to b e D lop ed gs eve Bac klo g	Ave e T f C nt D efe rred rag enu re o urre Ma ent Fe nag em es
Pro jec t	Loc atio n	Un its/ Bed s	1 Un its	Yea rs
Re ire by De ig t nt me s n
2 Ke Sa tua p err a nc ry	Q l d	3 1 9		6. 4
T he Te rra ce s	Q l d	8 6		3. 1
Gr Ne lso 's n ov e	S N W	25	1 45	1. 3
Ro h for d P lac c e	N S W	25	1 0 0
2 A be le rva	V ic	2 3 7	1 0	8. 3
2 F i d d lers Gr ee n	V ic	2 2 9		7. 1
Ca Ga ia de es r ns	V ic	2 6	1 1 0	0. 5
Tr in ity Gr ee n	S A	4 1	5 0	1. 8
To l Re ire by De ig ta t nt me s n		9 8 8	4 15	–
3 Le d Le Pr im l i fe n as e e
Re ire V i l lag t nt me es	Va iou r s	2 2 1 1, 1		Va iou r s
Ca Ag d e re	Va iou r s	2, 3 1 3		Va iou r s
To l Se ior L iv ing ta n		1 4, 5 1 3	4 15	–

1 Backlog includes the total number of units in both company-owned and managed projects. The actual number of units for any particular project can vary as planning applications are obtained. Senior Living units relate to potential units on existing sites.

2Managed on behalf of the Lend Lease Core Plus Fund.

3 During the year Lend Lease completed the acquisition of a 43.2% stake in LLP which owns a portfolio of senior living communities across Australia and New Zealand. As part of this transaction, Lend Lease sold seven retirement villages to LLP (Glenaeon, Lutanda Manor, Pittwater, Peppertree Hill, Burwood Terrace, Forest Hills and Highvale) and the Keperra Sanctuary hostel. Total backlog excludes the backlog for LLP retirement villages of 729 units and aged care facilities of 217 beds.

Communities continued

Communities – Europe – Project Listing

			Est ima ted		Bac klo g	Bac klo g	Est ima ted Co ial mm erc
Pro jec t	Loc atio n	Ow shi Inte t ner p res	Co letio mp n 1 Dat e	Tot al 2 Un its	Lan d 3 Un its	Bui lt-F orm 3 Un its	Ba ckl og /00 0s sqm
Zo d Pro j ts ne ec
B5 So hs i de ut	B irm ing ha m	1 0 0 %	Co lete d mp	47 0		5
Na ig ion Str at t v ee	B irm ing ha m	% 1 0 0	Co lete d mp	3 5 0		5
Str Es t sex ee	B irm ing ha m	% 1 0 0	Co lete d mp	27 5		1 6 0	0. 6
Jo hn Br ig ht Str t ee	B irm ing ha m	1 0 0 %	Co lete d mp	1 9 0		3 0	0. 8
Ho du W ha f n ras r	B irm ing ha m	1 0 0 %	Co lete d mp	1 25		3 5
Ho du W ha f P ha I I n ras r se	B irm ing ha m	% 1 0 0	2 0 1 3	1 0 0		1 0 0
A lce Ro d ste r a	B irm ing ha m	1 0 0 %	2 0 1 2	5 0		5 0	0. 2
Bro Str t ms g rov e ee	B irm ing ha m	1 0 0 %	2 0 1 3	45		45	0. 2
Un it ies d Ar ies an mo ur	B irm ing ha m	1 0 0 %	2 0 1 4	1 6 0		1 6 0	0. 3
St. Ja me s	C he lte ha n m	% 1 0 0	Co lete d mp	1 4 0		1 0
Mo k br i dg n e	Le ds e	1 0 0 %	2 0 17	7 25		7 25
C lar Do k en ce c	Le ds e	1 0 0 %	Co lete d mp	1, 15 0			9. 5
Gr Qu art ee n er	Ma he ste nc r	0 0 % 1	2 0 1 4	3 8 0 1,		5 45	0. 9
Po tat W ha f P ha I o r se	Ma he ste nc r	% 1 0 0	2 0 1 3	2 15		2 15
Re ime nt g	Ma he ste nc r	1 0 0 %	2 0 1 4	45		45	0. 7
Wo d f ie l d Ro d o a	A ltr inc ha m	1 0 0 %	2 0 1 2	4 0		4 0
Hu ate ng	Yo k r	% 3 3	2 0 17	7 3 0		6 7 0	8. 0
S he rat Pa k on r	Du ha r m	% 1 0 0	2 0 1 2	1 15		1 15
Ap leto V i l lag p n e	C he h ire s	1 0 0 %	2 0 1 2	4 0		4 0
Su bto l zo d ta ne				6, 3 45	–	2, 9 9 5	2 1. 2

1Estimated completion date for apartments represents the financial year in which the project construction is completed.

2Represents residential and non-residential units and built-form dwellings forecast to be completed by the end of the project.

3Backlog includes the total number of units in both company-owned and joint venture projects. The actual number of units for any particular project can vary as planning applications are obtained.

Communities continued

Communities – Europe – Project Listing continued

			Est ima ted Co letio mp n 1	Tot al 2	Bac klo g Lan d 3	Bac klo g Bui lt-F orm 3	Est ima ted Co ial mm erc Ba ckl og
Pro jec t	Loc atio n	Ow shi Inte t ner p res	Da te	Un its	Un its	Un its	/00 0s sqm
Zo d Pro j inu d ts nt ne ec co e
Sa dy La n ne	C he h ire s	1 0 0 %	2 0 1 2	3 5		3 5
A lex dra Ro d So h ut an a	Ma he ste nc r	% 1 0 0	2 0 1 0	25		25
Go H i l l os e	Mo et h rp	% 1 0 0	2 0 1 2	6 0		6 0	0. 6
Gr ic h Pe ins la ee nw n u	Lo do n n	5 1 %	2 0 25	1 0, 0 0 0	6, 0 0 0	4, 0 0 0	3 8 7. 8
Ot he Cr by j ts r os p ro ec	Va iou r s	% 5 0– 1 0 0	Co lete d mp	1 3 5			0. 5
To l zo d ta ne				1 6, 6 0 0	6, 0 0 0	1 15 7,	4 1 0. 1
Un d Pro j ts zo ne ec
G lou Ro d ste ce r a	Ba h t	1 0 0 %	2 0 1 2	7 0		7 0
Po W ha f P ha I I tat o r se	Ma he ste nc r	1 0 0 %	2 0 1 4	2 0 5		2 0 5
To l u d ta nz on e				27 5	–	27 5	–
4 To l Co it ies Eu ta mm un rop e –				1 6, 8 75	6, 0 0 0	3 9 0 7,	4 1 0. 1

1Estimated completion date for apartments represents the financial year in which the project construction is completed.

2Represents residential and non-residential units and built-form dwellings forecast to be completed by the end of the project.

3Backlog includes the total number of units in both company-owned and joint venture projects. The actual number of units for any particular project can vary as planning applications are obtained.

4 The number of projects in the UK includes Stratford and Elephant and Castle. Elephant and Castle is still under negotiation so is not included in the backlog metrics above. Stratford is progressing on a fee based arrangement and therefore is excluded from the backlog metrics.

Communities – Americas – Project Listing

Pro jec t Ho izo Up tow r n n	Loc atio n De nve r	Ow shi Inte t ner p res 1 0 0 %	1 Da te 2 0 2 3	2 Un its 3, 8 5 5	3 Un its 3, 8 5 5	3 Un its	/00 0s sqm 8 4 1. 3
To l Co it ies Am ica ta mm un er s –				3, 8 5 5	3, 8 5 5	–	8 4 1. 3

1Estimated completion date for master-planned communities represents the estimated financial year of the last unit settled.

2Represents residential and non-residential units and built-form dwellings forecast to be completed by the end of the project.

3The actual number of units for any particular project can vary as planning applications are obtained.

Public Private Partnerships

Overview

Pu b l ic Pr iva Pa h ip Am ica te rtn ers s – er s	Nu mb er o	1 f P roje cts	Est ima ted Ca US	2 ital Sp end p \$b	Co itte mm US	3 d E ity qu \$m	Un its Und er M	ent
	Jun e	Jun e	Jun e	Jun e	Jun e	Jun e	Jun e	ana gem Jun e
	200 9	20 08	200 9	20 08	200 9	20 08	200 9	20 08
Op ion l ( d ) t era a se cu re	17	17	0 5.	1 5.	1 0 9. 8	1 0 9. 8	3 8, 0 0 5	3 8, 45 0
Pre fer d b i d de ( de d ) re r aw ar	2	2	0. 5	0. 8			5, 5 5 0	6, 3 0 0
To l ta	1 9	1 9	5. 5	9 5.	1 0 9. 8	1 0 9. 8	4 4, 0 0 5	4 4, 0 75

1Number of projects includes extensions of existing projects and projects where Lend Lease is preferred bidder.

2Over the initial development period of the project.

3Includes both invested and committed equity.

Pu b l ic Pr iva Pa h ip Eu te rtn ers s – rop e	Nu mb er o	1 f P roje cts	Inve ste	d E ity qu £m	Co itte mm £m	2 d E ity qu	Fac ilitie s M Re ven ue	ent ana gem 3 Bac klo g £m
	Jun e	Jun e	Jun e	Jun e	Jun e	Jun e	Jun e	Jun e
	200 9	20 08	200 9	20 08	200 9	20 08	200 9	20 08
Op ( ) ion l d t era a se cu re	1 8	1 8	8 0. 0	7 1. 0	3 0. 8	2 8. 7	4 1 0	3 6 6
Pre fer d b i d de ( de d ) re r aw ar	1	1
To l ta	1 9	1 9	8 0. 0	7 1. 0	3 0. 8	2 8. 7	4 1 0	3 6 6

1Number of projects combines extensions of existing projects.

2Committed equity refers to equity and loan stock contributions that Lend Lease has a future commitment to invest.

3Facilities management revenue backlog disclosed is for ten years only, although Public Private Partnership (PPP) contracts typically operate for a period of up to 40 years.

Public Private Partnerships continued

Public Private Partnerships – Americas – Military Housing – Project Listing

Pro jec t	Loc atio n	Ser vice	Sta tus	Init ial Dev elo ent pm Per iod Yea rs	ual/ Act Exp ed ect Fin ial anc Clo se Dat e	Pro jec t Ter m Yea rs	Est ima ted Ca ital p 1 Sp end \$m US	Per tag cen e of Co tion nst ruc Co lete d mp %	Inve d ste Equ ity \$m US	Co itte d mm 2 Equ ity \$m US	Un its Und er Ma ent nag em
Fo Ho d rt o	Te xa s	Ar my	Op ion l t era a	6	Oc 0 1 t–	5 0	2 25	1 0 0	6. 0		5, 7 0 0
Tr i- Co d mm an	So h Ca l ina ut ro	Ma ine Co r rp s	Op ion l t era a	5	Fe b– 0 3	0 5	0 1 4	0 0 1	3. 3		0 0 1, 7
Fo Ca be l l rt mp	Ke ky ntu c	Ar my	Op ion l t era a	6	De 0 3 c–	5 0	1 6 0	9 0		6. 0	4, 25 0
H ic ka m	Ha i i wa	A ir Fo rce	Op ion l t era a	6	Fe b– 0 5	5 0	2 4 0	8 2	1 6. 5		1, 4 0 0
Ar R C I my	Ha i i wa	Ar my	Op ion l t era a	1 0	Ap 0 5 r–	5 0	1, 9 9 0	4 6	8. 0		7, 9 0 0
Fo Dru rt m	Ne Yo k w r	Ar my	Op ion l t era a	5	Ma 0 5 y–	0 5	25	0 0 1		0 5.	3, 0 0 1
Ca Le j mp eu ne	Ca / No h l ina rt ro Ne Yo k w r Ca / No rt h l ina ro	Ma ine Co rp s r	Op ion l t era a	5	Oc 0 t– 5	0 5	3 5 5	8 1	7.5		3, 3 0 0
Ca Le j P ha 2 mp eu ne se	Ne Yo k r w	Ma ine Co r rp s	Op ion l t era a	5	No 0 6 v–	5 0	1 25	25	2.5		1, 0 5 0
Fo Kn rt ox	Ke ky ntu c	Ar my	Op ion l t era a	8	Fe b– 0 7	0 5	2 15	3 2		3. 0	2, 0 5 5
Ca Fo rt be l l A d d it ion l mp a Sc ing or	Ke ky ntu c	Ar my	Op ion l t era a	4	Ma 0 7 y–	5 0	1 4 0	8			2 0 0
Fo Ho d Sta 2 rt o g e	Te xa s	Ar my	Op ion l t era a	5	Ma 0 7 y–	0 5	8 5	6 3			2 0 0
Co Co A ir ba t d m mm an Gr I I ou p	/ Ar izo Ne na w Me ico x	A ir Fo rce	Op ion l t era a	7	Ju l– 0 7	5 0	2 3 0	5 6		1 1. 0	1, 8 5 0
Fo Dru Un ie d rt m ac co mp an O f f ice Qu art r ers	Ne Yo k w r	Ar my	Op ion l t era a	2	Ju l– 0 7	5 0	2 0	9 4			2 0 0
H ic ka P ha 2 m se	Ha i i wa	A ir Fo rce	Op ion l t era a	6	Au 0 7 g–	5 0	4 15	1 8		25 .5	1, 1 0 0
Tr i- Gr ou p	Co / lor do a Ca l i for ia n	A ir Fo rce	Op ion l t era a	6	Se 0 7 p–	5 0	25 0	3 0		1 1. 0	1, 45 0
Ca Le j P ha 3 mp eu ne se	No h Ca l ina / rt ro Ne Yo k w r	Co Ma ine r rp s	Op t ion l era a	6	No 0 7 v–	5 0	2 4 0	8	4.5		2, 0 0 0
Fo Dru A d d it ion l Sc ing rt m a or	Ne Yo k w r	Ar my	Op ion l t era a	3	Ju 0 8 n–	5 0	15 5	6			5 5 0
Su bto l P P P – Am ica ta er s							5, 0 1 0		4 8. 3	6 1.5	3 8, 5 0 0

1Over the initial development period of the project.

2Committed equity represents future equity investments in the projects.

Public Private Partnerships continued

Public Private Partnerships – Americas – Military Housing – Project Listing continued

Pro jec t	Loc atio n	Ser vice	Sta tus	Init ial Dev elo ent pm Per iod Yea rs	Act ual/ Exp ect ed Fin ial anc Clo se Dat e	Pro jec t Ter m Yea rs	Est ima ted Ca ital p 1 Sp end \$m US	Per tag cen e of Co tion nst ruc Co lete d mp %	Inve d ste Equ ity \$m US	Co itte d mm 2 Equ ity \$m US	Un its Und er Ma ent nag em
3 P A L Gr A P ha 1 ou p se	Va iou r s	Ar my	Pre fer d b i d de re r	2	Au 0 9 g–	5 0	5 0				3, 2 0 0
4 Gr P A L A P ha 2 ou p se	Va iou r s	Ar my	Pre fer d b i d de re r	3	Au 1 1 g–	5 0	15 0				5 5 0
5 Wa inw ig ht / Gr ly r ee	A las ka	Ar my	Pre fer d b i d de re r	2	Se 0 9 p–	5 0	2 9 0	1			1, 8 0 0
To l P P P – Am ica ta er s							5, 5 0 0		4 8. 3	6 1.5	4 4, 0 5 0

1Over the initial development period of the project.

2Committed equity represents future equity investments in the projects.

3PAL Group A Phase 1 involves the renovation of existing hotels and is anticipated to take two years.

4PAL Group A Phase 2 involves the construction of four new hotels and further renovations on existing hotels.

5A small design / build scope of work was executed in May 2009, however financial close with the execution of the full design / build agreement is expected in September 2009.

Public Private Partnerships continued

Public Private Partnerships – Europe – Project Listing

	Loc atio n	Sta tus	Act ual/ Exp ed ect Fin ial anc Clo Dat se e	Co tion nst ruc Per iod Yea rs	Op tion al era Te rm Yea rs	Est ima ted Co tion nst ruc 1 Val ue £m	Per f tag cen e o Co nst tion ruc Co lete mp %	Fac ilitie s Ma ent nag em Rev enu e 2 Bac klo g £m	Inve d ste Equ ity £m	Co itte d mm 3 Equ ity £m
He lt hc a are
Ca l de da le Ho ita l sp r	U K	Op ion l t era a	Ju l– 9 8	3	3 3	8 7	1 0 0	4 1	6. 7
Wo Ho ita l ste rce r sp	U K	Op ion l t era a	Ma 9 9 r–	3	3 3	8 2	1 0 0	5 4	1. 1
He ha Ho ita l – P ha 1 a d 2 x m sp se s n	U K	Op t ion l era a	Ap 0 1 r–	2	3 2	2 9	1 0 0	1 3	0. 6
Bu ley Ho ita l rn sp	U K	Op ion l t era a	Oc 0 3 t–	3	3 0	27	1 0 0	1 3	1. 0
Ro ha Ho ita l ton e mp sp	U K	Op ion l t era a	Ma 0 4 y–	2	3 0	5 7	1 0 0	1 4	1.7
Ro for d Ho ita l m sp	U K	Op ion l t era a	Ja 0 4 n–	3	3 6	2 1 3	1 0 0	7	7. 0
Le ds Ho ita l e sp	U K	Op t ion l era a	Oc t– 0 4	3	3 3	17 5	1 0 0	3 6	9. 9
He ha Ho ita l – P ha 3 m sp se x	U K	Op ion l t era a	Ju l– 0 6	2	27	2 4	1 0 0	3	1. 3
Ma he Ho ita l ste nc r sp	U K	Un de ion str t r c on uc	De 0 4 c–	5	3 8	3 9 3	9 3	3 1	1 1. 3
Ma j da ho da Ho ita l a n sp	Sp in a	Op t ion l era a	Ap 0 5 r–	3	3 0	1 8 4	1 0 0	2	3. 0
Su bto l ta						1, 27 1		2 1 4	4 3. 6	–

1Represent total construction value over the contract duration.

2Facilities management revenue backlog disclosed is for ten years only, although PPP contracts typically operate for a period of up to 40 years.

3Committed equity refers to equity and loan stock contributions that Lend Lease has a future commitment to invest.

Public Private Partnerships continued

Public Private Partnerships – Europe – Project Listing continued

			Act ual/			Est ima ted	Per f tag cen e o	Fac ilitie s Ma ent nag em
			Exp ed ect Fin ial C los anc e	Co tion nst ruc Per iod	Op tion al era Te rm	Co tion nst ruc 1 Val ue	Co nst tion ruc Co lete	Rev enu e 2 Bac klo g	Inve d ste Equ ity	Co itte d mm 3 Equ ity
	Loc atio n	Sta tus	Dat e	Yea rs	Ye ars	£m	mp %	£m	£m	£m
E du ion t ca
Ne le Sc ho ls ast wc o	U K	Op ion l t era a	Ma 0 2 r–	2	27	5 0	1 0 0	17	1. 8
L inc ln Sc ho ls o o	U K	Op ion l t era a	Se 0 1 p–	2	3 1	2 0	0 0 1	0 1	2 1.
Sc L i l ian Ba l is ho l y o	U K	Op t ion l era a	Fe b– 0 3	2	27	1 3	1 0 0	7	0. 8
La h ire Sc ho ls P ha 1 nc as o se	U K	Op ion l t era a	De 0 6 c–	2	25	8 1	1 0 0	2 3	3. 1
La h ire Sc ho ls P ha 2 nc as o se	U K	Un de ion str t r c on uc	De 0 7 c–	2	25	3 4	8 8	8		1. 6
La h ire Sc ho ls P ha 2 A nc as o se	U K	Un de ion str t r c on uc	Ju l– 0 8	2	25	9 5	2 5	0 1		2. 6
Sc La h ire ho ls P ha 3 nc as o se	U K	Un de str t ion r c on uc	Ju 0 9 n–	2	25	6 9	1 6	1 1	1. 8
Co k Ma it im Co l leg r r e e	Ire lan d	Op ion l t era a	Fe b– 0 3	2	27	3 0	1 0 0	1 0	2. 2
B irm ing ha B S F m	U K	Pre fer d b i d de re r	Au 0 9 g–	3	25	6 8
Ac da ion t co mm o
Tre 1 as ury	U K	Op ion l t era a	Ma 0 0 y–	2	3 7	1 1 4	0 0 1	3 7	6 1.
Tre 2 as ury	U K	Op t ion l era a	Ja 0 3 n–	2	3 5	1 4 8	1 0 0	3 7	1. 9
S he f f ie l d Un ive ity rs	U K	Un de ion str t r c on uc	Ma 0 6 y–	4	4 0	1 6 9	9 4	2 6	5. 0
Wa ste
La h ire Wa ste nc as	U K	Un de ion str t r c on uc	Ma 0 7 r–	4	25	25 2	5 7		17 0	2 6. 6
To l P P P – Eu ta rop e						2, 3 7 8		4 1 0	8 0. 0	3 0. 8

1Represent total construction value over the contract duration.

2Facilities management revenue backlog disclosed is for ten years only, although PPP contracts typically operate for a period of up to 40 years.

3Committed equity refers to equity and loan stock contributions that Lend Lease has a future commitment to invest.

Investment Management

Funds Under Management (FUM)¹

		FU M Jun e 200 9	FU M Jun e 200 8	FU M Jun e 200 9	FU M Jun e 200 8
Fun d	Fun d T ype	£b	£b	A\$ b	A\$ b
As ia Pa i f ic c
Au l ian Pr im Pro Fu ds str ert a e p y n	Co re			4. 6	5. 0
Le d Le Co P lus Fu d n as e re n	Co P lus re			0. 5	0. 4
Co Le d Le it ies Fu d 1 n as e mm un n	Va lue A d d			0. 2	0. 2
Re l Es tat Pa rtn h ip Fu ds a e ers n	En ha d nc e			0. 1	0. 1
As ia Pa i f ic Inv Co No 2 L im ite d est nt c me mp an y	Co P lus re			0. 8	0. 8
Le d Le As ian Re i l Inv Fu d ta est nt n as e me n	Va lue A d d			0. 6	0. 4
Ma d Inv Ma da est nt tes na g e me n	Co / Va lue A d d re			0. 2	0. 2
Le d Le Pr im l i fe n as e e	Co P lus re			1.5
To l As ia Pa i f ic F U M ta c				8. 5	7. 1
Eu rop e
Le d Le Re i l Pa h ip ta rtn n as e ers	Co re	0. 5	0. 8	1. 1	1. 6
Le d Le Ov Pa h ip ate rtn n as e erg ers	Co re	0. 1	0. 2	0. 2	0. 4
C he lms for d Me do L im ite d Pa h ip rtn a ws ers	Va lue A d d	0. 1	0. 1	0. 1	0. 2
To l Eu F U M ta rop e		0. 7	1. 1	1. 4	2. 2
To ta l F U M		–	–	9. 9	9. 3

1FUM represents the gross market value of real estate and other related assets managed on behalf of investors.

Project Management and Construction

Major Projects1

				Co tion nst ruc
Pro jec t N am e	Loc atio n	Clie nt	Co ntra ct 2 Typ e	Val ue A\$ m	Co letio mp n Dat e	Sec tor	Des crip tion
As ia Pa i f ic c
Go l d Co Un ive ity Ho ita l ast rs sp	Q l d	Qu lan d He lt h ee ns a	G M P	0 0 1, 4	2 0 2 1	He lt hc a are	Ma he de ig d c ion f e t str t na g s n a n on uc o he Go l d Co Ho ita l t ast ne w sp
C Ro l h i l dre 's Ho ita l y a n sp	V ic	C h i l dre 's Ho ita l Pa rtn h ip n sp ers	G M P	1, 0 7 0	2 0 1 4	He lt hc a are	Re de lop nt f ho ita l ve me o sp
Bu i l d ing E du ion Re lut ion Hu / t nte ca vo r Ce l Co d No he Sy dn ntr ast rt a an rn ey Re ion g	N S W	N S W De f Co art nt p me o mm erc e	M C	6 75	2 0 1 0	E du ion t ca	De ig d c ion f n str t s n a n on uc o ew fac i l it ies d r fur b is hm 3 8 0 ts an e en ac ros s ho ls sc o
Re b le En Co ion P lan t t ne wa erg y rp ora	S ing ap ore	F luo Da ie l En ine & r n g ers Co nst tor Lt d ruc s	C M	6 4 9	2 0 1 0	In du ia l str	So lar l p lan t p an e
A N Z Me l bo urn e	V ic	Le d Le Co ion / A N Z t n as e rp ora	G M P	6 0 0	2 0 1 0	Co ia l mm erc	He d o f f ice V icto ia Ha bo a r r ur, , Me l bo urn e
Co lt h Ne Bu i l d mm on we a w	C A T	Go Fe de l t ra ve rnm en	C M	5 27	2 0 1 2	Go t ve rnm en	5 0, 0 0 0 s ia l o f f ice q m co mm erc sp ac e
Br is ba Su Co urt ne p rem e	Q l d	Qu lan d Go t ee ns ve rnm en	G M P	5 2 0	2 0 1 1	Go t ve rnm en	De lop f a Su Co nt urt ve me o ne p rem e w d D istr ict Co bu i l d ing urt an
Lo B io log ics Ex ion nza p an s	S ing ap ore	S Lo B io log ics ing P lan 2 t nza ap ore –	C E P M	5 0 9	2 0 1 0	P ha ica l t rm ac eu	B io log ics fac i l ity
To Ry de p	N S W	Be i l le Gr ou p v	G M P	47 8	2 0 1 0	Re i l ta	Re de lop f s ho ing nt ntr ve me o p p ce e
C ha les Sq Re de lop tow nt r n ua re ve me	N S W	T he G P T Gr ou p	G M P	3 4 9	2 0 1 1	Re i l ta	Re de lop f s ho ing nt ntr ve me o p p ce e
L ive l Ho ita l rp oo sp	S N W	S Go N W t ve rnm en	C M	2 9 9	2 0 1 1	He lt hc a are	P ha 1 o f ho ita l re de lop nt se sp ve me
Sy dn Wa De l ina ion P ip l ine ter t ey sa e	N S W	Sy dn Wa ter ey	A L I	2 8 9	2 0 1 0	Wa ter	P ip l ine ins l lat ion ta e
Da l ing Wa l k r	N S W	Le d Le De lop / Sy dn nt n as e ve me ey Ha bo Fo ho Au t ho ity r ur res re r	G M P	2 8 6	2 0 1 1	Co ia l mm erc	1.5 -he ia l o f f ice cta re co mm erc sp ac e de lop nt ve me
Mu lwa la Am it ion Fa cto mu n ry	N S W	Au l ian De f De fen str art nt a p me o ce	G M P	27 6	2 0 1 2	Go t ve rnm en	Re de lop f p l lan nt t ve me o rop e fac ing fac i l ity tur ma nu

1Disclosure of major projects is subject to client approval. This impacts the number of projects available for disclosure in each region.

2Contract types are guaranteed maximum price (GMP); managing contractor (MC); construction management (CM); engineering, procurement and construction management (EPCM); and Alliance (ALI).

Project Management and Construction continued

Major Projects1 continued

			Co	Co nst tion ruc
Pro jec t N am e	Loc atio n	Clie nt	ntra ct 2 Typ e	Val ue A\$ m	Co letio mp n Dat e	Sec tor	Des crip tion
f As ia Pa i ic c
Ge Str 4 2 0 t org e ee	S N W	Fo rt ius Fu ds Ma t Pty n na g em en L im ite d	G M P	27 0	2 0 1 0	Co / ia l mm erc Re i l ta	Re de lop nt f re ta i l sp d ve me o ac e a n h ig h r ise f f ice in Sy dn ne o ey w
@ So 3 1 3 t me rse	S ing ap ore	A R I F / Le d Le Co ion t n as e rp ora	G M P	1 9 7	2 0 1 0	Re i l ta	Re i l de lop Or ha d ta nt ve me on c r Ro d a
A lco S ing Ma fac ing tur n ap ore nu	S ing ap ore	A lco S ing Ma fac ing Pte tur n ap ore nu Lt d	E P C M	1 9 0	2 0 1 1	P ha ica l t rm ac eu	Op ht ha lm ic P ha ica l P lan t t rm ac eu
Ge h E. Co l i P lan nte t ne c	S ing ap ore	Ge h, Inc nte ne c	E P C M	17 6	2 0 1 0	P ha ica l t rm ac eu	B io log ics fac i l ity
Sy dn Int ion l A irp at ort ey ern a	N S W	Sy dn A irp Co ion Lt d ort t ey rp ora	M C	17 2	2 0 1 0	Tra ion ort at ns p	Ex ion d r fur b is hm f t o p an s an e en ter ina l m
My V icto ia Ha bo er r r ur	V ic	Le d Le Co ion / My t n as e rp ora er	G M P	1 4 3	2 0 1 0	Co ia l mm erc	He d o f f ice V icto ia Ha bo a r r ur, , Me l bo urn e

1Disclosure of major projects is subject to client approval. This impacts the number of projects available for disclosure in each region.

2Contract types are guaranteed maximum price (GMP); engineering, procurement and construction management (EPCM); and managing contractor (MC).

Project Management and Construction continued

Major Projects1 continued

				Co tion nst ruc
			Co ntra ct	Val ue	Co letio mp n
Pro jec t N am e	Loc atio n	Clie nt	2 Typ e	\$m US	Dat e	Sec tor	Des crip tion
Am ica er s
Na ion l Se Me ia l / t t. 1 1 a p mo r / Fo da t ion Po rt Au t ho ity un r	Ne Yo k w r	Na ion l Se Me ia l an d t t. 1 1 a p mo r Ce Mu at t he Wo l d Tra de ntr se um r e	C M	6 8 3	2 0 1 1	Ot he r	Me ia l an d m he W T C at t mo r us eu m ite s
( Ca ) Mc Do l d 's Mc fe Pro na g ram	Va iou r s	Mc Do l d 's na	C M	3 0 8	2 0 1 0	Ot he r	Ins ta l lat ion f a o p p rox 4, 0 0 0 Mc Ca fes he U S s t ac ros
Ro k ing ha Me ia l Ho ita l c m mo r sp	V irg in ia	Ro k ing ha Me ia l Ho ita l c m mo r sp	G M P	2 17	2 0 1 0	He lt hc a are	2 3 8 be d ho ita l de lop nt sp ve me
3 3 N. C lar k 5	C h ica g o	So h Pa l De L L C ut rce v.	G M P	2 1 4	2 0 0 1	Co ia l mm erc	f f ice bu i l d ing 45 st ore y o
15 0 Am ste da Av r m en ue	Ne Yo k w r	15 0 Am ste da Av Ho l d ing r m en ue s L L C	G M P	2 0 7	2 0 1 0	Re i de nt ia l s	4 2 s tor i de nt ia l bu i l d ing it h a ey res w hre ity fac i l ity t tor s e ey co mm un
No h S ho Lo Is lan d Je is h rt re ng w – Wo 's Be dto me n we r	Ne Yo k w r	No h S ho Lo Is lan d Je is h rt re ng w – He lt h Sy ste a m	G M P	1 9 5	2 0 1 1	He lt hc a are	Ne 2 9 0, 0 0 0 s / ft w 's ho ita l w q om en sp
1 1 1 La Str t wr en ce ee	Ne Yo k w r	C lar Gr ett ou p	G M P	17 9	2 0 1 0	Re i de ia l nt s	1 s h ig h r ise i de ia l bu i l d ing 5 tor nt ey re s
On Mu Pa k We st e se um r	C h ica g o	Co En ter ise ies p r mp an	G M P	1 6 5	2 0 1 0	Re i de nt ia l s	5 3 s tor lux h ig h r ise i de nt ia l ey ury re s bu i l d ing
S h ire H G T Pro j At las t ec	Ma hu set ts ssa c	S h ire Hu Ge ic T he ies t ma n ne rap	G M P	1 4 3	2 0 1 0	Ot he r	Ne d isp b le b io log ics w os a fac ing fac i l ity tur ma nu
Sq Fra k l in n ua re	Ba lt im ore	Sta Me d r	G M P	1 3 5	2 0 1 1	He lt hc a are	Re de lop nt f e ist ing ho ita l ve me o x sp
3 6 0 Re i de s nc es	Sa Jo n se	M E S A De lop nt ve me	G M P	1 2 4	2 0 1 0	Re i de ia l nt s	2 4 s i de ia l bu i l d ing tor nt ey res
So la ir W i ls h ire	Lo An les s g e	K O A R W i ls h ire We L L C ste rn	G M P	1 17	2 0 0 1	Re i de ia l nt s	6 s i de ia l bu i l d ing it h t 1 tor nt ey res w wo lev ls o f re i l an d p k ing ta e ar
Aq lea Re rt a d Re i de ua so n s nc es	F lor i da	Cry Ca C sta l Be h ita l, L L ac p	G M P	1 1 0	2 0 1 0	M ixe d- Us e	/ 25 0 ho te l ro 1 8 lux om ury do in ium fac i l ity co n m
St. Jo h 's Ho ita l se p sp	F lor i da	St Jo h 's – Ba ist He lt hc t se p p a are	G M P	1 0 9	2 0 1 0	He lt hc a are	Ne fu l l-s ice ho ita l w it h erv sp w 0 8 be ds 1
N J He lt h En iro l ta a v nm en Ag icu ltu l La b Fa i l ity r ra c	Ne Je w rse y	N Y De f En iro art nt t p me o v nm en	G M P	0 6 1	2 0 0 1	P ha ica l t rm ac eu	Ag icu ltu l la b fac i l ity r ra

1Disclosure of major projects is subject to client approval. This impacts the number of projects available for disclosure in each region.

2Contract types are construction management (CM); and guaranteed maximum price (GMP).

Project Management and Construction continued

Major Projects1 continued

				Co nst tion ruc
			Co ntra ct	Val ue	Co letio mp n
Pro jec t N am e	Loc atio n	Clie nt	2,3 Typ e	£m	Dat e	Sec tor	Des crip tion
Eu rop e
B P Re ta i l	Pa Eu n- rop e	B P	P M	8 0 0	2 0 1 4	Re ta i l	Re l o f t he fra k ne wa me wo r int in B P s ice nt to ag ree me ma a erv sta t ion Eu s a cro ss rop e
Pe l Me d ia C ity e	Ma he ste nc r	Pe l e	M C	45 0	2 0 1 1	Co ia l mm erc	M ixe d-u de lop ist ing nt se ve me co ns f c ia l o f f ice d ios stu o om me rc s, , i de nt ia l an d r eta i l bu i l d ing res s
M O D S L A M P ha 2 se –	U K	De fen Es tat ce es	G M P	4 2 8	2 0 1 3	Go t ve rnm en	Ne d u de d s ing le l iv ing an p g ra w da ion for he i l ita t t ac co mm o m ry
Ma he Jo int Ho ita l ste nc r sp	Ma he ste nc r	Ca ly He lt hc ta st a are	L S / F P	3 9 9	2 0 1 1	He lt hc a are	Ne ho ita l an d r fur b is hm f t o w sp e en ist ing ho ita l s ite ex sp
So Co ut h We st Pr im ntr t e ac	So ut h We st En lan d g	De fen Es tat ce es	G M P	2 9 4	2 0 1 1	Go t ve rnm en	Pro is ion f e sta te t v o ma na g em en ice d p j t m t se rv s a n ro ec an ag em en f c ita l co ion nst t o ap ruc p rog ram me
On Ne C ha e w ng e	Lo do n n	La d Se it ies n cu r	C M	2 6 1	2 0 1 1	Co ia l mm erc	Ne i l an d c ia l ret w a om me rc ion nst t co ruc
C B B Bro dc ast ing Ho P ha 2 a us e se	Lo do n n	Se La d it ies n cu r	S / L F P	25 8	2 0 1 1	Co ica tio mm un ns	De l it ion d r str t ion f mo an ec on uc o B B C he dq rte a ua rs
Ca d bu C ho late Fa cto ry co ry	Po lan d	Ca d bu Po ls ka ry	M C	2 1 6	2 0 1 0	In du ia l str	Ne ho late du ion lan ct t w c co p ro p
Re ts P lac Ma in Bu i l d ing g en e	Lo do n n	Br it is h La d n	C M	1 9 0	2 0 1 0	Co ia l mm erc	Ne f f ice d r i de nt ia l w o an es de lop nt ve me
Ce l Sa int G i les ntr a	Lo do n n	Sta ho n p e	C M	17 2	2 0 1 0	Co ia l mm erc	De l it ion f e ist ing bu i l d ing d mo o x an f f ice ion nst t ne o co ruc w
Un ive ity f S he f f ie l d P F I Stu de nt rs o Ac da t ion co mm o	S he f f ie l d	Ca ly H ig he E du ion ta st t r ca	L S / F P	6 9 1	2 0 0 1	E du ion t ca	Re fur b is hm d n de t a st nt en n ew u da t ion ac co mm o
Gr ic h N 0 2 0 4 ee nw	Lo do n n	G P R L / Le d Le J V n as e	L S / F P	1 1 2	2 0 1 0	Co ia l mm erc	Co ion f tw ia l nst t ruc o o c om me rc f f ice bu i l d ing it h r i l fac i l it ies eta o s w

1Disclosure of major projects is subject to client approval. This impacts the number of projects available for disclosure in each region.

2Contract types are project management (PM); managing contractor (MC); guaranteed maximum price (GMP); lump sum/fixed price (LS/FP); and construction management (CM).

3Construction value in PM assignments is the gross construction value and may not correlate to revenue recorded on the project.

Project Management and Construction continued

Realised Gross Profit Margin Analysis by Sector1

	Jun e 2 009 Asi a P acif ic	Jun e 2 009 Am eric as	Jun e 2 009 Eur ope	Jun e 2 009 Tot al	Jun e 2 008 Tot al
	GP M %	GP M %	GP M %	GP M %	GP M %
Co / O ia l f f ice mm erc	3 6	1 4	2 8	2 8	2 4
Co ica t ion mm un s	5		5	4	3
E du ion t ca	2	1 1	5	6	8
Go / C iv ic t ve rnm en	4	3	9	6	8
He lt hc a are	6	1 4	4	7	5
In du ia l / Te hn log str c o y	17	1	9	1 0	8
M ixe d-u se		9	8	4	2
P ha ica l / R & D t rm ac eu	5	5	3	4	4
/ Se Re i de nt ia l ior L iv ing s n	6	2 8	6	1 2	1 6
Re i l ta	1 2	8	15	1 2	1 3
Tra ion ort at ns p	7	4	4	5	4
Ot he r		3	4	2	5
To l ta	1 0 0	1 0 0	1 0 0	1 0 0	1 0 0

1Bovis Lend Lease's strategy is to reduce the volatility of its earnings by operating in a diverse range of industries and geographies. The table details the GPM earned by sector for the year ended 30 June 2009.

Five Year Profile

		June 2009	June 20081	June 2007	June 2006	June 2005
Profitability Revenue Statutory (loss)/profit before tax	A\$m A\$m	14,785 (733)	14,678 310	14,282 628	12,127 573	9,435 350
Statutory (loss)/profit after tax attributable to members Operating profit after tax2	A\$m A\$m	(654) 308	254 436	498 446	415 354	226 286
Operating EBITDA2 Earnings per share on statutory (loss)/profit3 Earnings per share on operating profit2,3 Statutory (loss)/profit after tax to	A\$m cents cents	412 (154.1) 72.5	517 63.4 108.7	551 124.3 111.4	527 104.0 88.7	411 56.5 71.6
shareholders' equity (ROE) for the period Dividend per share4 Dividend payout ratio on operating profit	% cents	(24.4) 41	8.2 77	15.7 77	14.7 61	11.9 57
after tax2,4	%	60.7	70.9	69.2	68.8	79.5
Corporate Strength Total assets Cash Borrowings Current assets Current liabilities Shareholders' equity Cash flows provided by/(used in) operations Net asset backing per share Ratio of current assets to current liabilities Borrowings to shareholders' equity Borrowings to shareholders' equity plus	A\$m A\$m A\$m A\$m A\$m A\$m A\$m A\$ times %	8,319 1,121 1,125 4,106 4,082 2,447 382 5.35 1.01 46.0	8,550 843 929 4,085 3,915 2,981 269 7.43 1.04 31.2	9,336 550 1,076 4,514 3,869 3,243 357 8.09 1.17 33.2	8,166 560 846 3,379 3,179 3,011 660 7.53 1.06 28.1	6,925 570 500 2,612 3,384 2,710 (55) 6.80 0.77 18.4
borrowings Gross borrowings to total tangible assets5 Borrowings to total market capitalisation Shares on issue Number of shareholders Number of equivalent full-time employees	% % % m no. no.	31.5 16.9 35.1 458 52,684 10,656	23.8 14.5 24.3 401 51,632 12,039	24.9 15.7 14.5 401 49,051 10,817	21.9 15.6 15.1 400 50,179 9,652	15.6 12.9 9.7 399 52,878 8,791
Shareholders' Returns and Statistics Proportion of shares on issue to top 20 shareholders Shareholdings relating to employees6 Total dividends declared Share price as at 30 June as quoted on	% % A\$m	74.3 7.9 187	75.4 9.3 309	76.9 9.5 309	76.4 9.6 244	75.6 10.8 227
the Australian Securities Exchange	A\$	7.01	9.55	18.54	13.99	12.96

1 June 2008 has been adjusted to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements'.

2 Operating profit excludes unrealised property investment revaluations (June 2009: A\$325.7 million before tax, A\$263.0 million loss after tax; June 2008: A\$69.2 million before tax, A\$60.2 million after tax). June 2009 also excludes inventory carrying value adjustments A\$226.1 million loss before tax, A\$188.3 million loss after tax (June 2008: A\$121.5 million before/after tax), goodwill impairments A\$252.9 million

before/after tax, other carrying value adjustments A\$233.0 million before tax, A\$204.7 million loss after tax, savings implementation costs A\$120.8 million (A\$83.9 million after tax) and a net gain on closure of the Bovis UK pension scheme to future accrual A\$44.3 million before tax (A\$31.7 million after tax).

3 Calculated using the weighted average number of shares on issue including treasury shares.

4 Dividends include interim and final dividends.

5 Gross borrowings includes other non current financial liabilities.

6 Shares held through employee benefit vehicles.

Directors' Report

Table of Contents

1.	Governance	2
a.	Board/Directors	2
	b. Company Secretaries' Qualifications and Experience	5
	c. Officers Who Were Previously Partners of the Audit Firm	5
	d. Directors' Meetings	5
e.	Interest in Capital	6
2.	Operations	6
	a. Principal Activities	6
	b. Review and Results of Operations	7
	c. Dividends	7
	d. Significant Changes in State of Affairs	7
	e. Events Subsequent to Balance Date	7
f.	Likely Developments	7
	g. Environmental Regulation	7
3.	Remuneration Report	8
	a. Remuneration Governance	9
	b. Remuneration Policy – Audited	11
	c. Remuneration Details – Audited	18
	d. Long Term Incentives and Retentions – Audited	20
	e. Service Agreements – Audited	23
f.	Additional Information – Audited	31
4.	Other	31
	a. Share Options	31
	b. Indemnification and Insurance of Directors and Officers	31
	c. Non Audit Services	31
	d. Rounding Off	32
	Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001	33

Directors' Report

The Directors present their Report together with the Annual Consolidated Financial Report of the consolidated entity, being the Company and its subsidiaries ('Lend Lease' or 'the Group') for the financial year ended 30 June 2009 and the Auditor's Report thereon.

1. Governance

a. Board/Directors

The names, qualifications and experience of each person holding the position of Director of the Company at the date of this Report are:

D A Crawford AO, Chairman

(Non Executive)

Age 65

Mr Crawford joined the Board in July 2001 and was appointed Chairman in May 2003. Mr Crawford was appointed an Officer of the Order of Australia (AO) in June 2009 in recognition for service to business as a Director of public companies, to sport, particularly through the review and restructure of national sporting bodies, and to the community through contributions to arts and educational organisations.

Experience and Qualifications

Previously, Mr Crawford was National Chairman of the Australian firm of KPMG. He has extensive accounting and business experience having worked with many large corporations and governments. He holds a Bachelor of Commerce and Bachelor of Laws from the University of Melbourne. He is a Fellow of the Institute of Chartered Accountants.

Other Directorships and Positions

Mr Crawford is Non Executive Chairman of Foster's Group Limited (appointed Director August 2001 and Chairman October 2007) and a Non Executive Director of BHP Billiton Limited (appointed May 1994). He was formerly a Non Executive Director of Westpac Banking Corporation (appointed May 2002, resigned December 2007) and National Foods Limited (appointed November 2001, resigned June 2005).

S B McCann, Managing Director

(Executive)

Age 44

Mr McCann was appointed Chief Executive Officer in December 2008 and became Managing Director in March 2009.

Experience and Qualifications

Prior to this role, Mr McCann was Group Finance Director (appointed in March 2007) and Chief Executive Officer for Lend Lease's Investment Management business (September 2005 to December 2007).

Mr McCann has more than 15 years experience in investment banking, property funds management and capital markets transactions. Prior to joining Lend Lease, Mr McCann was at ABN AMRO, where his roles included Head of Property, Head of Industrial Mergers & Acquisitions and Head of Equity Capital Markets for Australia and New Zealand.

Mr McCann also practised as a mergers and acquisitions lawyer at Freehills, Melbourne for four years and worked in a Chartered Accounting firm in taxation for four years.

Mr McCann holds a Bachelor of Economics (Finance major) and a Bachelor of Laws from Monash University in Melbourne, Australia.

Other Directorships and Positions

Nil.

P M Colebatch

(Non Executive)

Age 64

Mr Colebatch joined the Board in December 2005 and is Chairman of the Personnel and Organisation Committee and a member of the Risk Management and Audit Committee.

Experience and Qualifications

Mr Colebatch has a Bachelor of Science and Bachelor of Engineering from the University of Adelaide, a Master of Science from Massachusetts Institute of Technology and a Doctorate in Business Administration from Harvard University. He has held senior management positions in insurance and investment banking, and was formerly on the Executive Board of Swiss Reinsurance Company, Zurich. He was previously on the Executive Board of Credit Suisse Group, Zurich, where he was Chief Financial Officer, and was subsequently Chief Executive Officer of Credit Suisse Asset Management.

1. Governance continued

a. Board/Directors continued

P M Colebatch continued

Other Directorships and Positions

Mr Colebatch is a Non Executive Director of Insurance Australia Group Limited (appointed January 2007) and a Non Executive Director of Mann Group plc (appointed September 2007).

G G Edington CBE

(Non Executive)

Age 63

Mr Edington joined the Board in 1999 and is a member of the Risk Management and Audit Committee and the Sustainability Committee.

Experience and Qualifications

Qualified as a Chartered Surveyor, Mr Edington brings to the Board extensive UK and international experience in the property sector. Mr Edington was a Director of BAA plc and Chairman of BAA International. He joined BAA plc in 1988, became a member of the Board in 1991 and has been the Chairman of six BAA companies. He is a past President of the British Property Federation, was the Chairman of UK property company Greycoat Estates Limited and was a member of the Bank of England Property Forum. Mr Edington was formerly Chairman of the Council of Trustees of the UK children's charity, Action for Children, and was awarded a CBE for 'services to children'.

Other Directorships and Positions

Nil.

P C Goldmark

(Non Executive)

Age 68

Mr Goldmark joined the Board in 1999 and is Chairman of the Nomination Committee and a member of the Sustainability Committee.

Experience and Qualifications

Mr Goldmark is Director, Climate and Air Program at Environmental Defense, a US-based non-profit environmental advocacy organisation. He was the Chairman and Chief Executive Officer of The International Herald Tribune in Paris between 1998 and 2003. Prior to this, he was the President and Chief Executive Officer of the Rockefeller Foundation in New York for ten years. Mr Goldmark has held positions including Senior Vice President of the Times-Mirror Corporation, Executive Director of the Port Authority of New York and New Jersey, and Director of the Budget for the State of New York. A writer and speaker on world affairs, Mr Goldmark graduated with a BA from Harvard College, Government Department, magna cum laude. He brings to Lend Lease his wide experience as a Chief Executive Officer and senior executive in the private and public sectors, both in the USA and internationally.

Other Directorships and Positions

Nil.

J A Hill

(Non Executive)

Age 63

Ms Hill joined the Board in May 2006. She is Chairperson of the Sustainability Committee and a member of the Personnel and Organisation Committee.

Experience and Qualifications

Ms Hill has held a number of senior executive positions in the land development and housing construction industry in North America. She was formerly the Chairperson, President and Chief Executive Officer of Costain Homes, Inc. (US) and Vice President and General Manager, Mobil Land (Georgia) Corporation. She has a Bachelor of Arts from the University of California at Los Angeles and a Master of Arts in marketing and management from the University of Georgia.

Other Directorships and Positions

Ms Hill is a Non Executive Director of Wellpoint, Inc. (appointed March 1994). She was formerly a Non Executive Director of Resources Connection, Inc. (appointed January 2003, resigned December 2006). Ms Hill also sits on the Board of Directors of the Lord Abbett family of mutual funds, which is the trustee of 31 mutual funds of publicly held companies.

1. Governance continued

a. Board/Directors continued

D J Ryan AO

(Non Executive)

Age 57

Mr Ryan was appointed a Director in December 2004. He is Chairman of the Risk Management and Audit Committee and a member of the Personnel and Organisation Committee.

Experience and Qualifications

Mr Ryan has previously held Managing Director positions in investment banking and industry, as well as being the Chairman or a Non Executive Director of a number of listed public companies. He has a Bachelor of Business from the University of Technology, Sydney and is a Fellow of CPA Australia and the Australian Institute of Company Directors.

Other Directorships and Positions

Mr Ryan is Non Executive Chairman of Transurban Holdings Limited (appointed Director April 2003 and Chairman February 2007) and ABC Learning Centres Limited (administrators appointed, receivers and managers appointed) (appointed Director June 2003 and Chairman 30 May 2008). He is also the Non Executive Chairman of Tooth & Co Limited (appointed Director September 1999 and Chairman January 2003).

M W Selway DUniv (Non Executive)

Age 50

Mr Selway joined the Board in June 2008. In July 2009, he became a member of the Sustainability Committee and the Personnel and Organisation Committee.

Experience and Qualifications

Mr Selway is currently Chief Executive of The Weir Group PLC, a FTSE 250 engineering sector listed company headquartered in Scotland. He brings more than 30 years' experience in global business development, integration and management through various roles. Prior to joining the Weir Group in 2001, he was a member of the Supervisory Board of Schefenacker AG, and Executive Director of Britax International plc. Having spent much of his career managing engineering businesses in the United States, the United Kingdom and Australia, Mr Selway is regarded as a specialist in operational management and efficiency. He holds a Diploma in Industrial Engineering and was awarded an honorary degree of a Doctor of the University of the West of Scotland in July 2009. Mr Selway was given this award in recognition of his outstanding contribution to industry in Scotland and to honour his distinguished career.

Other Directorships and Positions

Mr Selway is an Executive Director of The Weir Group PLC (appointed June 2001).

1. Governance continued

b. Company Secretary's Qualifications and Experience

W Hara

Mr Hara was appointed Company Secretary in July 2007. Prior to his appointment as Group General Counsel and Company Secretary of Lend Lease in January 2007, Mr Hara was Company Secretary for another company listed on the ASX.

Mr Hara has a Bachelor of Commerce and a Bachelor of Laws from the University of New South Wales and is a member of the Law Society of New South Wales.

c. Officers Who Were Previously Partners of the Audit Firm

Mr Crawford was a Partner and Australian National Chair of KPMG. He resigned from this position on 28 June 2001 prior to his appointment as a Director of the Company on 19 July 2001. KPMG or its predecessors was appointed as the Company's auditor at its first Annual General Meeting in 1958.

d. Directors' Meetings

During the financial year, 12 Board meetings were held. The Board recognises the essential role of committees in guiding the Company on specific issues. Committees address important corporate issues, calling on senior management and external advisers prior to making a final decision or making a recommendation to the full Board.

There are four permanent committees of the Board:

Nomination Committee

The Nomination Committee consists entirely of Non Executive Directors. This Committee assists the Board by considering nominations to the Board to assure that there is an appropriate mix of expertise, skills and experience on the Board. During the financial year 1 July 2008 to 30 June 2009, all meetings of the Nomination Committee were held in conjunction with Board meetings, and all Non Executive Directors routinely attended.

Personnel and Organisation Committee

The Personnel and Organisation Committee consists entirely of Non Executive Directors. The Committee's agenda reflects the importance of human capital to the Group's strategic and business planning and it assists the Board in establishing appropriate policies for people management and remuneration across the Group. During the financial year 1 July 2008 to 30 June 2009, six meetings of the Personnel and Organisation Committee were held.

Risk Management and Audit Committee

The Risk Management and Audit Committee consists entirely of Non Executive Directors. The principal purpose of the Committee is to assist the Board in fulfilling its corporate governance and oversight responsibilities in relation to the risk management and internal control systems, accounting policies and practices, internal and external audit functions and financial reporting of the Group. During the financial year 1 July 2008 to 30 June 2009, five meetings of the Risk Management and Audit Committee were held.

Sustainability Committee

The Sustainability Committee consists entirely of Non Executive Directors. The Committee assists the Board in monitoring the decisions and actions of management in achieving the aspiration of Lend Lease to be a sustainable organisation. During the financial year 1 July 2008 to 30 June 2009, three meetings of the Sustainability Committee were held.

1. Governance continued

d. Directors' Meetings continued

Attendance at Meetings of Directors 1 July 2008 to 30 June 2009

		Board Meetings		Risk Management and Audit Committee Meetings		Personnel and Organisation Committee Meetings		Sustainability Committee Meetings		Other2 Committee Meetings
Director	Held1	Attended	Held1	Attended	Held1	Attended	Held1	Attended	Held1	Attended
G Clarke	8	8							4	4
P Colebatch	12	11	5	5	6	6			4	4
D Crawford	12	12							4	4
G Edington	12	12	5	5			3	3
P Goldmark	12	12					3	3
J Hill	12	12			6	6	3	3
S McCann	4	4
D Ryan	12	12	5	5	6	6			4	4
M Selway	12	11
R Taylor	3	2					1	1

1 Reflects the number of meetings held during the time the Director held office during the year.

2 Committees constituted to address specific issues.

In addition, as required, matters were dealt with by circular resolution and ratified at the next meeting of the Board or appropriate Committee.

e. Interest in Capital

The interest of each of the Directors (in office at the date of this report) in the issued shares of the Company at 20 August 2009 and 21 August 2008, is set out below.

Director	Shares Held Directly 2009	Shares Held Beneficially/ Indirectly 20091	Total 2009	Shares Held Directly 2008	Shares Held Beneficially/ Indirectly 20081	Total 2008
D Crawford		48,128	48,128		33,895	33,895
P Colebatch	2,000	8,891	10,891	2,000	3,767	5,767
G Edington	15,000	16,323	31,323	15,000	11,484	26,484
P Goldmark	3,000	17,703	20,703	3,000	12,579	15,579
J Hill	2,000	8,233	10,233	2,000	3,109	5,109
D Ryan		21,242	21,242		15,834	15,834
M Selway	4,343	2,145	6,488	4,000		4,000
S McCann	73,301		73,301	N/A	N/A	N/A

1 Includes shares beneficially held by Non Executive Directors in the Retirement Plan.

2. Operations

a. Principal Activities

The Group has five lines of business that operate in three geographic regions: Asia Pacific, Europe and the Americas.

• – The Retail business comprises retail property management, asset management and development. This business also includes the Group's ownership in direct property investments, including those held via limited partnerships;
• – The Communities business is involved in the development of large scale master-planned urban communities, inner city apartments and senior living;
• – The Public Private Partnerships (PPP) business manages and invests equity in large PPP projects;
• – Investment Management provides real estate investment management services. Investment Management includes the Group's ownership interests in property investments held indirectly through investments in Lend Lease managed funds; and
• – Project Management and Construction provides construction, project management and design services through Bovis Lend Lease (Bovis).

2. Operations continued

b. Review and Results of Operations

A full review of operations is included in the Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) section of the Annual Consolidated Financial Report.

c. Dividends

The 2008 final dividend of A\$136.4 million (34 cents per share, 45% franked) referred to in the Directors' Report dated 21 August 2008 was paid on 26 September 2008.

Details of dividends in respect of the current year are as follows:

	A\$m
Interim dividend of 25 cents per share (60% franked) paid on 1 April 2009	113.5
Final dividend of 16 cents per share (100% franked) declared by Directors
to be paid on 25 September 2009	73.2
	186.7

d. Significant Changes in State of Affairs

There have been no significant changes in the state of affairs of Lend Lease.

e. Event Subsequent to Balance Date

No matters or circumstances have arisen since the end of the financial year that have significantly affected or may significantly affect the operations of the Group, the results of those operations or state of affairs of the Group in subsequent financial years other than the following:

Acquisition of Properties from Prime Retirement and Aged Care Property Trust (Prime Trust)

On 13 August 2009, Lend Lease entered into agreements to purchase nine Aged Care facilities and four Retirement Villages from Prime Trust for a total consideration of A\$76.7 million (excluding transaction costs). Settlement of four of the properties is subject to satisfaction of a number of conditions.

The Aged Care facilities and Retirement Villages will continue to be leased and managed by Lend Lease Primelife Limited following the change in ownership.

f. Likely Developments

Details of likely developments in the operations of Lend Lease in subsequent financial years are contained in the reports from the Chairman and Managing Director in the Annual Report. In the opinion of the Directors, disclosure of any further information would be likely to result in unreasonable prejudice to the Group.

g. Environmental Regulation

The Group is subject to many environmental regulations, in particular relating to real estate development, project and construction management and asset management. Traditionally these regulations have related to environmental compliance aspects including noise and dust control, solid waste management and discharge into waterways. More recently, however, the Group is impacted by energy efficiency and greenhouse gas emissions legislation which require disclosure and performance reporting of activities under its operational and/or financial control.

To respond to environmental regulatory risks, the Group requires each of its businesses to operate an integrated Environment, Health and Safety Management System. This framework ensures environmental risks associated with the Group's operations or activities are managed via legal registers, risk assessment protocols, environmental management plans, trained environmental managers, routine inspections and audits.

The Sustainability Committee receives environmental compliance reports on a quarterly basis regarding any significant environmental incidents and non conformance with the Environment Policy of Lend Lease. The Directors are not aware of any material non compliance issues during the period covered by this Report.

Further details are contained in the 2009 Sustainability Report.

3. Remuneration Report

The Directors present the Remuneration Report prepared in accordance with section 300A of the Corporations Act 2001 for the Company and the consolidated entity for the year ended 30 June 2009. This Remuneration Report contains disclosures required by Australian Accounting Standard AASB 124 'Related Party Disclosures'.

The content of this Report, which has been audited as required by the Corporations Act 2001, is as follows:

Topic	Executive Summary	Page reference
a. Remuneration Governance	Remuneration governance is designed to ensure shareholders receive value for remuneration expenditure and assure remuneration is reasonable and acceptable.	9
1. Role of the Board and Personnel and Organisation Committee	The Board is responsible for remuneration decisions at Lend Lease. The Personnel and Organisation Committee assists the Board in fulfilling its corporate governance and oversight responsibilities in relation to people management and compensation policies for the Group.	9
2. Key Management Personnel and Other Executives	Key Management Personnel, which includes the Directors of the Company and the Executive Office, have authority and responsibility for planning, directing and controlling the activities of the Company and the consolidated entity. Other Executives represent employees in the category of the five highest paid Group or Company Executives that are not key management personnel.	9-10
3. Key remuneration changes for 2009	Policy changes in respect of Director and Executive remuneration in the current period to ensure continued alignment between the Company's long term strategic objectives and remuneration for key management personnel and other executives.	11
b. Remuneration Policy - Audited	The Remuneration Policy of the Group is determined by the Board on the recommendation of the Personnel and Organisation Committee, which is solely comprised of Non Executive Directors.	11
1. Remuneration Philosophy - Non Executive Directors	The Committee regularly reviews and sets remuneration levels of Non Executive Directors in order to ensure the Group has access to appropriately qualified and skilled independent directors.	11
2. Remuneration Philosophy - Executives	The purpose of Executive remuneration at Lend Lease is to retain, align and motivate key Executives who have a direct impact on Company performance.	13
3. Remuneration Structure	The Board is focused on ensuring the Executive remuneration structure is commensurate with the needs of the organisation and its strategy, as well as appropriate when assessed against external comparator companies and the interests of shareholders.	13
i Fixed Remuneration	Fixed remuneration is benchmarked by the Personnel and Organisation Committee based on remuneration information sourced from independent external remuneration advisors.	13
ii Short Term Incentives (STI)	The STI plan is an annual bonus plan which complements the overall Remuneration Policy of the Group by rewarding individual Executives on meeting or exceeding pre-set key financial and non-financial performance criteria which contribute to overall shareholder value.	13-14
iii Long Term Incentives (LTI)	The objectives of the LTI are to align executives with the long term interests of the Group and its shareholders, and attract and retain executives of the highest calibre by providing competitive rewards that relate to the performance of the individual executive, the Group and the Lend Lease Corporation share price.	14-17

Topic	Executive Summary continued	Page reference
3. Remuneration Structure continued iv Retention Awards	When the Board believes an employee is an outstanding performer and the Group and its shareholders will gain from further incentivising him or her to remain with the Group, a retention award may be made.	16
v Retirement Plans	Superannuation, pension and retirement arrangements for Executives.	17
vi Relationship of Remuneration to Company Performance	In considering the Group's performance and benefits for shareholder wealth, the Personnel and Organisation Committee, when setting the criteria for STI and LTI awards, has regard to the financial performance of the Group.	17
c. Remuneration Details - Audited	Provides details of the total remuneration for Directors and specific Executives.	18-19
d. Long Term Incentives and Retentions - Audited	Provides details of the LTI and retention awards granted to each executive.	20-22
e. Service Agreements	Provides details of new, modified and existing Executive service agreements, including key terms and termination provisions.	23-30

3. Remuneration Report continued

a. Remuneration Governance

Lend Lease's governance of remuneration is designed to ensure shareholders receive value for remuneration expenditure and assure remuneration is reasonable and acceptable.

Role of the Board and Personnel and Organisation Committee

The Board is responsible for remuneration decisions at Lend Lease. The Personnel and Organisation Committee ('Committee') assists the Board in fulfilling its corporate governance and oversight responsibilities in relation to people management and compensation policies for the Group.

The principal purpose of the Committee is to assist the Board in:

• – Fostering exceptional human talent and motivating and supporting employees to pursue the growth and success of the Group in alignment with the Company's values;
• – Assuring human capital considerations are central to and integrated into the Company's strategy and business plans;
• – Enabling the Group to attract and retain employees who can create sustainable value for stakeholders; and
• – Equitably and responsibly reward employees, having regard to the performance of the Group, individual performance and statutory and regulatory requirements.

The Committee consists exclusively of Non Executive Directors. The Committee has unrestricted access to senior management of the Group and company records as required. The Committee is authorised to obtain independent legal or other professional advice it considers necessary to execute its functions.

The Committee Charter is available on the Lend Lease website at: http://www.lendlease.com/llweb/llc/main.nsf/all/all_corpgov

Key Management Personnel and Other Executives

The primary focus of this report is the remuneration arrangements for Key Management Personnel and Other Executives of the Group.

In this report, the term 'Executive' is used to refer collectively to the Executive Directors, Executives and Other Executives as noted on page 10. The term 'Executive Management Team' (EMT) refers to the Managing Director/Chief Executive Officer and direct reports to the Managing Director/Chief Executive Officer.

3. Remuneration Report continued

a. Remuneration Governance continued

Key Management Personnel

The key management personnel of Lend Lease include the Directors of the Company and the 'Executive Office', consisting of the Executive Director and the Acting Chief Financial Officer.

Key Management Personnel and Other Executives

Non Executive Directors
D Crawford	Chairman, appointed 19 July 2001
P Colebatch	Appointed 1 December 2005
G Edington	Appointed 1 December 1999
P Goldmark	Appointed 1 December 1999
J Hill	Appointed 8 May 2006
D Ryan	Appointed 10 December 2004
M Selway	Appointed 17 June 2008
Executive Directors
S McCann	Appointed Managing Director 4 March 2009
	Appointed Chief Executive Officer 16 December 2008
	Group Finance Director until 15 December 2008
Former
G Clarke	Appointed 9 December 2002, resigned 27 February 2009
R Taylor	Appointed 10 December 2004, resigned as a Director
	9 October 2008 and employment ceased 10 April 2009
Company Secretaries
W Hara	Appointed 3 July 2007
Former
S Sharpe	Appointed 12 February 1997, resigned 31 August 2008
Executives
B Soller	Appointed Acting Chief Financial Officer 16 December 2008
Other Executives
	'Other Executives' represents employees in the category of five highest paid Group or Company executives that
are not key management personnel.
M Bellaman	Chief Executive Officer Bovis Lend Lease Americas
M Coleman	Global Chief Executive Officer Bovis Lend Lease
W Hara	Group General Counsel and Company Secretary
R Leaver	Chief Executive Officer Asia Pacific and Global Head of
	Investment Management
T Lombardo	Global Head of Strategy and Mergers and Acquisitions
N Martin	Group Head of Health and Safety, Risk and Insurance
M Menhinnitt	Global Head of Public Private Partnerships and Project
	Management and Construction
E Ooi	Chief Executive Officer Investment Management Asia
D Spencer	Group Head of Human Resources, employment ceased
	January 2009

3. Remuneration Report continued

a. Remuneration Governance continued

Key Remuneration changes for 2009

Policy decisions and key changes with respect to Non Executive Director and Executive remuneration have been made in the current period.

In addition to the changes discussed in this section, the Committee recognises changes to Non Executive Director and Executive remuneration arrangements may be necessary in the coming year and beyond. In particular, the announcements of the Australian Government on 1 July 2009 relating to the taxation of equity remuneration and the Productivity Commission inquiry into the regulatory framework around Executive remuneration will most likely lead to remuneration arrangement refinements for Directors, Executives and employees at Lend Lease.

Key changes in respect to Non Executive Directors' remuneration

The maximum aggregate fees which may be paid to Directors in any year pursuant to Rule 6.3(a) of the Constitution was increased from A\$1,700,000 (resolved at 2005 Annual General Meeting) to A\$2,500,000 by resolution at the 2008 Annual General Meeting. The actual fees paid to Directors (as distinct from the aggregate limit for all fees approved by shareholders) were increased effective 1 January 2009, the first change to actual fees paid to directors since 1 July 2006. Further detail on actual fees paid to Directors is contained on page 12 of this Report.

Key changes in respect of Executive and Employee remuneration

Fixed remuneration

In light of economic conditions and Company performance, the Group has implemented a Group–wide freeze on fixed remuneration increases for incumbents in the same role.

Incentive remuneration

Changes have been made to the Group's remuneration structure in the current period to ensure continuing alignment between the Group's long term strategic objectives and the remuneration of Executives. The details of incentive remuneration changes are discussed in the relevant sections. Significant changes include:

– STI arrangements have been changed as indicated to shareholders in the 2008 Remuneration Report. The key change is the reweighting of the financial and non-financial elements for STI. For Executive Office and functional head Executives, financial and non-financial components will account for 40% and 60% respectively of STI outcomes. For business unit Chief Executive Officers, financial and non-financial components will account for 60% and 40% respectively of STI outcomes.

In order to participate in the STI program, Executives must be assessed as having satisfactory overall performance with respect to Safety, Sustainability, Values, Control and Diversity performance gates.

Reflecting Group performance, the available pool of STI funds has been reduced for performance during the current financial year. As a consequence of the deterioration in market conditions, additional metrics relating to overhead efficiency, capital management and counterparty risk management were introduced for all EMT members and selected executives for the second half of the current financial year to continue to motivate and incentivise Executives.

– The 2008 LTI award differs from previous LTI awards. The 2008 award changed the vesting conditions by introducing a retention component (one third of award value) and amending the existing earnings per share component (now one third of award value). The existing Total Shareholder Return component and vesting schedule (now one third of award value) has been retained.

b. Remuneration Policy — Audited

This section of the report sets out the approach to remuneration for both Non Executive Directors and Executives of the Group.

Remuneration philosophy — Non Executive Directors

Non Executive Director remuneration arrangements are separate and distinct from Executive structures. This reflects Lend Lease's commitment to corporate governance best practice.

The Committee reviews and sets remuneration levels of Non Executive Directors in order to be assured that the Group has access to appropriately qualified and skilled directors. The Committee has reviewed the shareholder– approved aggregate fee limit and the level of Board and Committee fees. No change to the aggregate fee limit is proposed for the upcoming financial year.

3. Remuneration Report continued

b. Remuneration Policy — Audited continued

In order to maintain Non Executive Directors' independence and impartiality, the remuneration of Non Executive Directors does not contain any component related to short term Company performance nor a variable quantum. Directors are impacted by Company performance with respect to personal shareholdings and reward elements (such as retirement benefits) delivered as Lend Lease Corporation shares.

Board fees/ Committee fees	Other fees/ benefits	Post-employment benefits
Board and Committee fees are set by reference to factors such as responsibilities and risks attached to the role, time commitment expected, independent advice and fees paid by peer companies. Current Board fees per annum are: – A\$160,000 for Board members (30 June 2008: A\$140,000). – A\$600,000 for the Chair of the Board (30 June 2008:	Non Executive Directors are compensated for time spent travelling to overseas Board and Board Committee meetings as follows: – \$Nil for travel less than four hours; – A\$2,800 each way for travel between four and ten hours; and – A\$6,000 each way for travel over ten hours.	Benefits are accrued in Lend Lease Corporation shares and will fluctuate in line with the value of these shares. Under the plan, the Company will issue to, or acquire for, or for the benefit of, each Non Executive Director a number of Lend Lease Corporation shares equal in value to 0.2 times the Director's fees (being fees for attending and chairing Board and Board Committee meetings), but not additional fees. In 2001, the Australian Securities Exchange (ASX) granted a waiver allowing issues of shares
A\$500,000). This increases to A\$640,000 per annum from 1 July 2009. Current Committee fees per annum effective from 1 January 2009, are: – A\$36,000 for members of the Risk Management and Audit	Non Executive Directors are also entitled to be reimbursed for all business related expenses, including travel, as may be incurred in the discharge of their duties.	under the plan conditional on no amendment of the plan without shareholder approval, an undertaking for disclosure in the Annual Report of the names of Directors and their ability to participate, together with an explanation of the dilutory effects of any share issues, and disclosure in the Annual Report of the waiver terms.
Committee. – A\$20,000 for members of the Personnel and Organisation, and Sustainability Committees (30 June 2008: A\$15,000). – A\$44,000 for Chairman of the Risk Management and Audit Committee (30 June 2008: A\$35,000). – A\$36,000 for Chairman of each of the Nomination, Personnel and Organisation and Sustainability Committees (30 June 2008: A\$25,000).		Allocations are made on 1 January each year based on the weighted average price of Lend Lease Corporation shares traded on the ASX during the five business days prior to 1 January each year. Annual issues of shares under the plan are capped at 0.01% of the Company's issued capital under the terms of the approving shareholder resolution. Earlier this year, shares totalling an additional 0.0004% of the then issued capital were inadvertently issued under the plan but this has been rectified. From inception in 2001, shares issued under the plan have totalled only 0.04% of current issued share capital, and the dilutory effect of the plan for shareholders has not been significant.
		The shares will be accessible only on retirement, except if the shares need to be sold at an earlier time to meet a tax liability in respect of the shares.
		Two Non Executive Directors appointed prior to 1 January 2001 have also accrued benefits under the previous Retirement Benefit Plan, as follows:
		– G Edington A\$138,520 (30 June 2008: A\$120,250). – P Goldmark A\$144,722 (30 June 2008: A\$128,032).

The Australian Government announced proposed changes to the taxation of equity plans in the May 2009 Commonwealth Budget and made subsequent amendments on 1 July 2009. As a result, the Company is currently reviewing the structure of its equity plans to ensure these arrangements:

• – Meet the commercial objectives of the Company;
• – Do not have adverse tax implications; and
• – Are aligned with the interests of Lend Lease shareholders.

The Government's proposed changes may impact the Directors' Retirement Benefit Plan as well as equity plans for Executives and employees.

3. Remuneration Report continued

b. Remuneration Policy — Audited continued

Remuneration philosophy — Executives

The purpose of Executive remuneration at Lend Lease is to retain, align and motivate key Executives who have direct impact on Company performance. The philosophy of the Group's remuneration policy is to reward Executives with market competitive remuneration and benefits, taking account of Group, business unit or function, and individual performance. In assessing these market benchmarks, the Group takes account of expert advice and relevant external comparators in the real estate and related sectors and of companies of similar size, complexity and international scope.

The approach of the Group is to provide a balance of fixed and performance based remuneration. Remuneration paid by the Group is designed to be appropriate and competitive in each of its business locations, having regard to local practice on base pay, incentives, retirement contributions and other benefits. The Group also recognises the need to take account of differing costs of living in relation to expatriates and this is reflected in remuneration for expatriate executives.

Each year the Personnel and Organisation Committee sets the key performance indicators (KPI) for Executives. The KPI generally include measures relating to the Group, the business unit, geography or function, and the individual. These include financial, non financial, incident and injury free and sustainability measures. The measures are chosen as they directly align the individual's reward to the KPI of the Group and to its strategy and performance.

Remuneration Structure

The Group's Executive remuneration framework consists of three principal elements:

Component	Comprises	'At risk'?
Fixed Remuneration	Base salary, retirement and other benefits	No
Short Term Incentive	Annual cash with equity related deferral	Yes
Long Term Incentive	Cash or share based multi year reward	Yes

'At risk' implies an absence of certainty of collection of a particular component of remuneration should agreed-upon performance hurdles or employment conditions not be met during the reporting period.

Fixed Remuneration

The salaries of the Executive Office and members of the EMT are set by the Personnel and Organisation Committee subject to approval by the Board. Salary changes usually take effect from September of each year except in the case of a new appointment. In the case of direct reports to the Chief Executive Officer, the Committee is assisted in this review by the Chief Executive Officer. For the forthcoming year no salary increases have been proposed for the Executive Office or EMT members in the same roles as previously. This is the second consecutive year in which salary has remained unchanged for individuals in the same roles.

The other elements of fixed remuneration include those typically or legally required to be provided in the geography where the executive is employed. These may include car, medical cover, employee share plan subscriptions, retirement contributions, life and/or disability cover and, in the case of international assignees, housing, schooling and tax return preparation. The value of these other benefits provided to executives is set out in Section 3c. of this Report. Executives are not automatically entitled to all of these benefits.

Short Term Incentives (STI)

Under the STI arrangement, executives may receive benefits dependent on the achievement of Group or business unit financial targets, incident and injury free, sustainability and individual targets. The total value of the potential benefit (target opportunity) varies by executive, but is linked to salary.

Arrangements for the June 2009 Financial Year

The following table sets out the criteria required to be achieved for the current year STI.

	Financial Element		Strategic, Business Unit, Functional and Cultural Element
–	40% of target opportunity for Executive Office, Chief Executive Officer of Lend Lease Ventures and functional heads.	–	60% of target opportunity for Executive Office, Chief Executive Officer of Lend Lease Ventures and functional heads.
–	60% of target opportunity for business unit Chief Executive Officers.	–	40% of target opportunity for business unit Chief Executive Officers.
	– Measured against financial value drivers under the themes of profitability, growth and capital efficiency at Group or business unit level, or a combination depending on role.	–	Measured against strategic, business unit, functional and cultural goals in a mix relevant to the individual.

– Upside opportunity for out performance on financial measures.

3. Remuneration Report continued

b. Remuneration Policy — Audited continued

Short Term Incentives (STI) continued

Arrangements for the June 2009 Financial Year continued

The benefit delivered to Executive Directors and Executives under the STI arrangement is summarised as follows:

		June 2009 STI Cash Element	June 2009 STI Deferred Element1
	Maximum Opportunity %	Percentage Paid %	Maximum Opportunity %	Calculated Based On
S McCann	97	69	53	Total package value
Other EMT	36-84	21-50	53	Australia: Total package value. UK and USA: Base salary

1 The STI deferred element is due to vest in August 2010.

Total package value equates to base salary plus superannuation. Cash benefits are paid in September of each year. Deferred benefits are delivered in Lend Lease Corporation shares or equivalent share value in cash based on the Lend Lease Corporation share price at the date of release of the bonuses. The shares (or share value if shares are not practicable) are then held in trust on behalf of the executive for the deferral period. For executives to receive the full deferral they must be employed by the Group at the date of vesting of the deferral element. The usual deferral period will be one year from the date of the grant.

Future Arrangements

A portion of STI awards is delivered as deferred equity to Executives. Due to the Australian Government announcements regarding the taxation of equity remuneration, the Board may amend the operation of the deferral in the coming period.

The Board has also agreed it intends to limit the aggregate pool of funds available for on target Group performance to 50% of the equivalent pool available in the previous year.

Long Term Incentives (LTI)

The current LTI awards were introduced and approved by the Board in 1999 and updated and extended for awards from 2001 onwards. In the 2008 Remuneration Report, the Board committed to reviewing the structure of the LTI awards to be granted in the June 2009 financial year. This has been done.

The objectives of the LTI are essentially twofold:

• – Aligning executives with the long term interests of the Group and its shareholders; and
• – Attracting and retaining executives of high calibre by providing competitive rewards that relate to the performance of both the individual executive and the Lend Lease Corporation share price.

LTI grants are normally made each year and are based on competitive remuneration practice. LTI grants are settled in cash or Lend Lease Corporation shares, with settlement occurring upon vesting.

Performance Shares will vest, subject to performance hurdles being met, after four years. If the performance hurdles are met early, there is an opportunity for vesting to occur at three years (for TSR and EPS) and 3 1/2 years (for TSR).

For Retention Shares, vesting occurs at the end of three years so long as the service conditions are fulfilled. No prorata vesting will be provided upon early departure.

Grants depend on personal contribution and potential and are designed to retain and motivate high performing key executives. The LTI are in the form of an Australian dollar figure grant (converted from local currency for overseas participants), which is invested in performance and retention shares over time to deliver value depending on:

• – Whether the Executive remains with the Group if the executive resigns before vesting, the grant will lapse;
• – The financial performance of the Group; and
• – The share price performance of Lend Lease Corporation.

3. Remuneration Report continued

b. Remuneration Policy — Audited continued

Long Term Incentives (LTI) continued

Details of the terms of the awards on issue during the June 2009 financial year are summarised below.

Plan	LTI – June 2006	LTI – June 2007	LTI – June 2008
Grant date	16 August 2006	15 August 2007	1 September 2008
Service period1	1 July 2006 – 30 June 2009 (three years)	1 July 2007 – 30 June 2010 (three years)	1 July 2008 – 30 June 2011/ 30 June 2012 (three to four years)
Performance condition(s): Each of the performance conditions may vest independently.	1. TSR of Lend Lease Corporation against the TSR of the individual ASX100 listed companies (comprised as at the beginning of the performance period) (50% award). Performance assessed over the three year performance period. Vesting Schedule – Upper quartile or better – 100% vesting – Median to upper quartile – straight line increase from 50% to 100% vesting – Median – 50% vesting – Below median – 0% vesting		1. TSR of Lend Lease Corporation against the TSR of the individual ASX100 listed companies (comprised as at the beginning of the performance period) (1/3 award). Performance assessed over the three year performance period. Vesting Schedule – Upper quartile or better – 100% vesting – Median to upper quartile – straight line increase from 50% to 100% vesting – Median – 50% vesting – Below median – 0% vesting
	2. Earnings per share (EPS) growth of Lend Lease Corporation over performance period (50% award). Vesting Schedule – At least 10% compounded EPS growth2 over three years - 100% vesting – Less than 10% EPS growth - 0% vesting		2. EPS growth3 of Lend Lease Corporation over performance period (1/3 award). The target rates will be set annually by the Board. Vesting Schedule – Below Target Rate - 0% vesting; – Between Target Rate and Target Rate plus 20% – straight line increase from 50% to 100% vesting; – Above Target Rate plus 20% – 100% vesting. TSR and EPS hurdles will be tested at year four. In addition, there is the opportunity if the hurdle is met earlier at year three (TSR and EPS) and year 3 1/2 (TSR) for all or part of the award to vest.
			3. Retention Shares against the tenure of the Executive (1/3 award). Should the Executive be employed three years after grant date, the award will vest. Early departure, except in limited circumstances approved by the Board, will lead to immediate forfeiture.
Method of award settlement	Shares, except for pre specified executives which are settled in cash.	Shares, except for pre specified executives which are settled in cash	Shares.

3. Remuneration Report continued

b. Remuneration Policy — Audited continued

Long Term Incentives (LTI) continued

Plan	LTI – June 2006	LTI – June 2007	LTI – June 2008
Award status	Did not vest. TSR ranking – 56th of 87. EPS growth – negative.	Not yet vested.	Not yet vested.
Accounting treatment	Recognised as an equity settled share based payment. The income statement expense and corresponding increase in equity is measured at the fair value at grant date using a Monte-Carlo simulation methodology, where the share price is projected based on the assumptions underlying the Black-Scholes formula. The method of award settlement of the 2006 LTI was changed from cash to shares on 15 August 2007. Certain pre specified executive awards are accounted for as a cash settled share based payment.	Recognised as an equity settled share based payment. The income statement expense and corresponding increase in equity is measured at the fair value at grant date using a Monte-Carlo simulation methodology, where the share price is projected based on the assumptions underlying the Black Scholes formula. Certain pre specified executive awards are accounted for as a cash settled share based payment.	Recognised as an equity settled share based payment. The income statement expense and corresponding increase in equity is measured at the fair value at grant date using a Monte-Carlo simulation methodology, where the share price is projected based on the assumptions underlying the Black Scholes formula.

1 This period may be shortened if an executive is a 'good leaver', that is, an executive who leaves employment by reason of death, total and permanent disability, redundancy or other reason as determined by the Personnel and Organisation Committee. Performance conditions continue to apply.

2 EPS for these grants is based on statutory profit after tax attributable to members of Lend Lease Corporation adjusted for unrealised property

investment revaluations (unless assets have been sold) and weighted average number of ordinary shares (excluding treasury shares). 3 EPS for this grant is based on operating profit as defined in the 2009 financial year and weighted average number of ordinary shares (excluding treasury shares).

Refer to Section 3d. of this Report for quantitative analysis of LTI awards on issue during the 2009 financial year.

Hedging in Relation to LTI Awards

The Group prohibits Executives from entering into pre vesting hedging arrangements in relation to LTI awards. For awards made in the June 2007 financial year onwards, it is an explicit condition for awards to vest that executives declare that they have not entered into any such arrangement.

Future Arrangements

In addition to the changes discussed in this section, the Committee recognises changes to Executive remuneration arrangements may be necessary in the coming year and beyond. In particular, the announcements of the Australian Government on 1 July 2009 relating to the taxation of equity remuneration and the Productivity Commission inquiry into the regulatory framework around Executive remuneration may lead to refinements to remuneration LTI awards arrangements.

Retention Awards

When the Board believes an Executive or employee is an outstanding performer and the Group and its shareholders will gain from further incentivising him or her to remain with the Group, a retention award may be made. As an incentive to remain with the Group requires a degree of certainty of value delivered to the individual at the end of the retention period, performance conditions are not generally applied to the ultimate payment of such an award.

3. Remuneration Report continued

b. Remuneration Policy — Audited continued

Long Term Incentives (LTI) continued

Retention Awards continued

Details of the current retention awards granted to the key management personnel are summarised below.

Key Management Personnel

Key terms and benefits

S McCann

An equity settled award of 141,367 shares valued at A\$2.5 million at award date was granted on 22 August 2007 and vests on 30 June 2012. Another equity settled award of 153,126 shares valued at A\$1.5 million on award date was granted on 30 September 2008 and vests in three equal tranches on 31 March 2009, 30 September 2009 and 31 March 2010. The awards will vest if Mr McCann remains in employment with the Group. If Mr McCann's employment is terminated without cause by the Group prior to the vesting date, the awards will vest on a pro-rata basis.

Refer to Sections 3d. and 3e. for further details of retention awards granted to key management personnel and other Executives in the category of five highest paid.

Retirement Plans

Retirement and pension plan arrangements are in place in most international locations. In the past, executives (and other employees) joined either a defined benefit or a defined contribution plan. Entry into all defined benefit plans has now ceased across the Group. All new Executive Directors and executives have the opportunity to join defined contribution plans.

Relationship of Remuneration to Company Performance

In considering the Group's performance and benefits for shareholder wealth, the Committee, when setting the criteria for STI and LTI awards, has regard to the financial performance of the Group. The performance in respect of these measures for the current financial year and previous four financial years is used to assess whether the financial component of LTI vests and is summarised in the following table.

		2009	2008	2007	2006	2005
Statutory profit after tax1	A\$m	(653.6)	265.4	497.5	415.2	210.7
Operating profit after tax1	A\$m	307.5	447.1	413.7	354.2	310.42
Earnings per shareon operating profit after tax	cents	77.5	120.9	120.5	96.1	n/a
Dividends paid and declared	A\$m	186.7	308.9	308.5	243.7	227.2
(Decrease)/increase in closing share price3	A\$	(2.54)	(8.99)	4.55	1.03	2.68

1 Statutory profit after tax represents profit attributable to the equity holders of the parent. Operating profit after tax excludes unrealised property investment revaluation losses of A\$263.0 million after tax (A\$60.2 million revaluation losses after tax for the June 2008 financial year), reduction in carrying value of inventory of A\$188.3 million (A\$121.5 million after tax for the June 2008 financial year), goodwill impairment of A\$252.9 million after tax, savings implementation costs of A\$83.9 million after tax, other carrying value adjustments of A\$204.7 million after tax and gain on Bovis UK pension scheme curtailment of A\$31.7 million.

2 June 2005 is based on operating results excluding gains on exiting the REI businesses (A\$11.6 million after tax), cost savings implementation expenses (A\$47.7 million after tax), Lend Lease/GPT merger and net separation costs (A\$19.4 million after tax) and write-off of GPT and Homemaker management agreements (A\$44.2 million after tax).

3 For share settled LTI arrangements the value is based on share prices at the date the award is granted. The table above represents the movement in the closing share price on 30 June of each financial year.

Operating profit after tax and return on capital are considered in setting the STI targets while dividends and changes in Lend Lease Corporation share price are included in the TSR calculation, which is one of the performance hurdles assessed for the LTI.

The Committee considers that the aforementioned external performance linked remuneration structure is appropriate because it:

• – Represents shareholders' 'bottom line' and provides an objective measure of value created for shareholders;
• – Is independent of accounting policies and accepted by institutional investors; and
• – Is simple to benchmark externally.

3. Remuneration Report continued

c. Remuneration Details – Audited

Details of the total remuneration of the Directors of the Company are set out on the following tables. In accordance with the requirements of AASB 124, the remuneration disclosures in the remuneration tables are calculated on an accruals basis and only include remuneration relating to the portion of the relevant periods that each individual was a Director.

				Short Term		Post Employment	Share Based Payment
Non Executive Directors		Base Fees A\$000s	Committee Fees A\$000s Chairman	Fees Committee A\$000s	Travel Fees A\$000s	annuation A\$000s Super	Other A\$000s Equity1	Total A\$000s
Crawford D	2009	550			40	14	110	714
	2008	500			38	13	100	651
Colebatch P	2009	150	30	25	54	14	41	314
	2008	140	25	15	52	13	36	281
Edington G	2009	150		43	60	14	39	306
	2008	140		30	52	13	34	269
Goldmark P	2009	150	30	17	65	14	40	316
	2008	140	25	15	48	13	36	277
Hill J	2009	150	30	17	71	14	40	322
	2008	140	25	15	58	13	36	287
D Ryan	2009	150	40	17	40	14	41	302
	2008	140	35	15	34	13	38	275
Selway2 M	2009	150			50	14	31	245
	2008	5					1	6
Comprises entitlements under the Non Executive Directors' Retirement Benefit Plan. 1

2 Mr Selway was appointed as a Non Executive Director on 17 June 2008.

			Short Term				Post Employment				Share Based Payment			Long Term6 Other
			A						B	C	D				E	(A+B+C+D)/E
		Salary	Incentive Cash	Other	Non	Super	Life	End of	Cash LTI	LTI Equity	Equity STI		Other			Proportion of Remuneration
Executive Directors		and Fees A\$000s	Bonus1 A\$000s	Bonuses A\$000s	Monetary2 A\$000s	annuation A\$000s	Insurance A\$000s	Service A\$000s	Settled A\$000s	Settled3 A\$000s	Settled4 A\$000s	Retention A\$000s	Equity5 A\$000s	A\$000s	Total A\$000s	Performance Related %
S McCann	2009	1,329	968		18	41	2			(146)	130	1,755	15	16	4,128	23.1
	2008	1,005	182		65	95	1		(606)	440	342	441	15	15	1,995	17.9
Former
G Clarke	2009	1,603			370	158	82	3,124	(994)						4,343	(22.9)
	2008	1,929	350		421	608	60		(1,144)		904	(1,637)		28	1,519	7.2
R Taylor	2009	826			4	176	4	2,130		(568)		340	26		2,938	(19.3)
	2008	1,046	182		7	249	5		(361)	487	627	1,803	34	15	4,094	22.8

The accompanying footnotes are on page 19

3. Remuneration Report continued

c. Remuneration Details – Audited continued

Details of the total remuneration of the executives of the Group are set out below and on the following page. In accordance with the requirements of AASB 124, the remuneration disclosures in the remuneration tables are calculated on an accruals basis and only include remuneration relating to the portion of the relevant periods that each individual was a key management person.

			Short Term				Post Employment				Share Based Payment			Long Term6 Other
		Salary and Fees A\$000s	Incentive Bonus1 A A\$000s Cash	Other Bonuses A\$000s	Non Monetary2 A\$000s	annuation Super A\$000s	Life Insurance A\$000s	End of Service A\$000	B A\$000s LTI Cash Settled	Settled3 LTI C Equity A\$000s	Equity Settled4 D STI A\$000s	Retention/ A\$000s Hybrid	Equity5 Other A\$000s	A\$000s	Total E A\$000s	Proportion of (A+B+C+D)/E Remuneration Performance Related %
Executives
B Soller	2009	536	281		45	45	4			(69)	78	138		9	1,067	27.2
	2008	511	155	475	73	42	3		(134)	129	168			8	1,430	22.2
Category of Five Highest Other Executives in the Paid
M Bellaman	2009	685	334		65	9				(93)	144	336			1,480	26.0
M Coleman	2009	586	288		356	186	3			(126)	143	525		8	1,969	15.5
	2008	487	373		530	261	2		(130)	149	169	501		8	2,350	23.9
W Hara	2009	323	263		45	14				(101)	115	177	240	8	1,084	25.6
	2008	318	173		42	12				191	123		240	8	1,107	44.0
Leaver R	2009	778	348		8	14	4			272	159		50	12	1,645	47.4
T Lombardo	2009	527	275		82	14	1			5	63	111		7	1,085	31.6
N Martin	2009	400	109		278	147				(49)	52	83		6	1,026	10.9
Menhinnitt M	2009	655	315		45	360	2			(53)	267	42		10	1,643	32.2
	2008	658	623		40	359	1			136	95	(96)		9	1,825	46.8
Ooi E	2009	571	196		125	136	5			240	157	243		7	1,680	35.3
Former
D Spencer 7	2009	323			340	49		320		(79)					953	(8.3)
	2008	330	97		406	50				79				6	968	18.2
The cash element of all STI bonuses has been accrued and is based on the performance criteria as outlined in Section 3b. of this Report. 1

2 Non Monetary' includes relocation benefits (such as housing, home leave travel, cost of living and tax return advice) and motor vehicle costs.

3 Fair value of LTI awards that are equity settled. Negative amounts generally represent a part accrual reversal for the 2006 LTI which did not vest and the 2007 LTI which is not expected to vest. 4 Represents fair value of deferred element of STI that is equity settled at a grant date value of A\$9.30. Based on the 30 June 2009 Lend Lease Corporation share price, the value of the awards is: Mr McCann A\$97,888; Mr Soller A\$58,449;

Mr Bellaman A\$108,739; Mr Coleman A\$108,220; Mr Hara A\$87,029; Mr Leaver A\$119,822; Mr Lombardo A\$47,135; Mr Martin A\$39,522; Mr Menhinnitt A\$201,502; Mr Ooi A\$118,637. 5 Represents executive participation in the Employee Share Acquisition Plan (ESAP).

6 'Other Long Term' represents accrual of statutory employee entitlements.

7 Mr Spencer unfortunately passed away in January 2009. The remuneration does not include the life insurance payment of A\$2.0 million.

3. Remuneration Report continued

d. Long Term Incentives and Retentions – Audited

Criteria 1: The award is dependent upon the executive remaining with the Group. If the executive resigns before vesting, the grant will lapse.

• Criteria 2: The award is dependent upon service to the vesting date, however, an early redemption date due to cessation of service may result in a pro rata payout.
• Criteria 3: Forfeiture on resignation. Pro rata on other service cessation.
• Criteria 4: Forfeiture and resignation. Awarded on other service cessation.
• Criteria 5: The TSR of Lend Lease measured against the ASX100 companies (with 50% vesting at median performance, rising to 100% on reaching top quartile performance).
• Criteria 6: The EPS of Lend Lease as reported in the financial statements adjusted for treasury shares and unrealised property investment revaluations (with 100% vesting if a minimum compound annual growth rate of 10% over the three year performance period).
• Criteria 7: EPS for this grant is based on operating profit as defined in the current financial year and weighted average number of ordinary shares (excluding treasury shares).
• Criteria 8: Internal performance metrics on achieving specified targets for specific business units.

							Current Award Expensed 20092
Executive Directors	Grant Date	Vesting Date	Granted Number	Award Value A\$ at Grant Date1	Award Value at June 2009 A\$	A\$ LTI Cash Settled	Equity Settled A\$ LTI	Retention/ Hybrids A\$	% Vested in the Year	% Forfeited in the Year3	Service Criteria	Performance Criteria	Performance Share (PS)/ Retention
S McCann	Jul 2006 Jul 2007	Jun 2009 Jun 2010	59,717 65,621	632,915 687,641	418,616		(230,439) (74,547)			100	Criteria 3 Criteria 3	Criteria 5,6 Criteria 5,6	PS PS
	Aug 2007	Jun 2012	141,367	2,500,000	990,983			514,374			Criteria 2	none	Retention
	Sep 2008	Aug 2011	60,135	421,464	421,546			117,073			Criteria 2	none	Retention
	Sep 2008	Aug 2012	120,235	763,566	842,847		159,076				Criteria 3	Criteria 5,7	PS
	Nov 2008	Mar 2010	153,126	1,500,000	1,073,413			1,123,418	33		Criteria 2	none	Retention
					3,747,405		(145,910)	1,754,865
Former
G Clarke	Jul 2006	Jun 2009	198,620	1,915,690		(753,432)				100	Criteria 3	Criteria 5,6	PS
	Jul 2007	Jun 2010	141,257	2,791,238		(240,843)				100	Criteria 3	Criteria 5,6	PS
						(994,275)
R Taylor	Jul 2006	Jun 2009	80,243	773,944			(416,145)		32	68	Criteria 3	Criteria 5,6	PS
	Oct 2006	Sep 2008	84,407	1,374,992				123,749	100		Criteria 1	none	Retention
	Oct 2006	Sep 2009	84,408	1,375,008				447,362	100		Criteria 1	none	Retention
	Oct 2006	Sep 2010	84,408	1,375,008				(231,071)		100	Criteria 1	none	Retention
	Jul 2007	Jun 2010	59,717	687,641			(229,214)			100	Criteria 3	Criteria 5,6	PS
	Sep 2008	Aug 2012	14,4584	77,104			77,104		100		Criteria 3	Criteria 5,7	PS

Annual Consolidated Financial Report 2009 Lend Lease Corporation

(568,255) 340,040

Footnotes on page 22

3. Remuneration Report continued

d. Long Term Incentives and Retentions – Audited continued

Executives B Soller
	Grant Date	Vesting Date	Granted Number	Award Value A\$ at Grant Date1	Award Value at June 2009 A\$	A\$ LTI Cash Settled	Equity Settled A\$ LTI	Retention/ A\$ Hybrids	% Vested in the Year	% Forfeited in the Year3	Service Criteria	Performance Criteria	Performance Share (PS)/ Retention
	Jul 2006	Jun 2009	21,398	206,384			(75,143)			100	Criteria 3	Criteria 5,6	PS
	Jul 2007	Jun 2010	15,688	180,647	109,973		(19,584)				Criteria 3	Criteria 5,6	PS
	Sep 2008	Sep 2009	12,506	116,250	87,667			116,250			Criteria 2	none	Retention
	Sep 2008	Aug 2011	11,191	78,435	78,449			21,787			Criteria 2	none	Retention
	Sep 2008	Aug 2012	22,376	142,101	156,856		26,006				Criteria 3	Criteria 5,7	PS
					432,945		(68,721)	138,037
Others in the
Category of Five
Highest Paid M Coleman	Jul 2006	Jun 2009	24,394	235,280			(110,505)			100	Criteria 3	Criteria 5,6	PS
	Jul 2007	Jun 2010	18,346	211,254	128,605		(46,232)				Criteria 3	Criteria 5,6	PS
	Jul 2007	Jun 2010	80,214	1,500,000	562,300			499,544			Criteria 2	none	Retention
	Sep 2008	Aug 2011	13,087	91,724	91,740			25,479			Criteria 2	none	Retention
	Sep 2008	Aug 2012	26,167	166,176	183,431		30,412				Criteria 3	Criteria 5,7	PS
					966,076		(126,325)	525,023
W Hara	Jul 2006	Jun 2009	31,384	302,699			(110,210)			100	Criteria 3	Criteria 5,6	PS
	Jul 2007	Jun 2010	23,360	268,990	163,754		(29,161)				Criteria 3	Criteria 5,6	PS
	Sep 2008	Sep 2009	15,519	144,250	108,788			144,250			Criteria 2	none	Retention
	Sep 2008	Aug 2011	16,664	116,793	116,815			32,442			Criteria 2	none	Retention
	Sep 2008	Aug 2012	33,319	211,593	233,566		38,724				Criteria 3	Criteria 5,7	PS
					622,923		(100,647)	176,692
Menhinnitt M	Jul 2006	Jun 2009	5,929	57,185			(26,858)			100	Criteria 3	Criteria 5,6	PS
	Jul 2007	Jun 2010	30,364	349,641	212,852		(76,517)				Criteria 3	Criteria 5,6	PS
	Sep 2008	Aug 2011	21,661	151,810	151,844			42,169			Criteria 2	none	Retention
	Sep 2008	Aug 2012	43,308	275,034	303,589		50,335				Criteria 3	Criteria 5,7	PS
					668,285		(53,040)	42,169
N Martin	Jul 2006	Jun 2009	15,157	146,189	106,251		(53,226)			100	Criteria 3	Criteria 5,6	PS
	Jul 2007	Jun 2010	11,285	129,947	79,108		(14,087)				Criteria 3	Criteria 5,6	PS
	Sep 2008	Sep 2009	7,197	66,898	50,451			66,898			Criteria 2	none	Retention
	Sep 2008	Aug 2011	8,051	56,423	56,438			15,673			Criteria 2	none	Retention
	Sep 2008	Aug 2012	16,096	102,221	112,833		18,708				Criteria 3	Criteria 5,6	PS
					405,081		(48,605)	82,571

21

3. Remuneration Report continued

d. Long Term Incentives and Retentions – Audited continued

							Current Award Expensed 20092
	Grant Date	Vesting Date	Granted Number	Award Value at Grant Date1 A\$	Award Value at June 2009 A\$	A\$ LTI Cash Settled	Equity A\$ LTI Settled	Retention/ Hybrids A\$	% Vested in the Year	in the Year3 % Forfeited	Service Criteria	Performance Criteria	Performance Share (PS)/ Retention
Category of Five Others in the Highest Paid
continued
T Lombardo	Jul 2007	Jun 2010	12,652	145,687	88,691		(15,794)				Criteria 3	Criteria 5,6	PS
	Sep 2008	Sep 2009	10,086	93,751	70,703			93,751			Criteria 2	none	Retention
	Sep 2008	Aug 2011	9,025	63,254	63,265			17,571			Criteria 2	none	Retention
	Sep 2008	Aug 2012	18,045	114,598	126,495		20,972				Criteria 3	Criteria 5,7	PS
					349,154		5,178	111,322
Ooi E	Jul 2006	Jun 2009	7,602	73,321	53,290		(34,437)			100	Criteria 3	Criteria 5,6	PS
	Jul 2007	Jul 2009	25,340	469,804	177,633			234,260			Criteria 4	none	Retention
	Jul 2007	Jun 2010	50,680	824,057	355,267		274,434				Criteria 3	Criteria 8	PS
	Jul 2007	Jun 2010	6,326	72,844	44,345		(15,942)				Criteria 3	Criteria 5,6	PS
	Sep 2008	Aug 2011	4,730	33,147	33,157			9,207			Criteria 2	none	Retention
	Sep 2008	Aug 2012	9,456	60,052	66,287		15,467				Criteria 3	Criteria 5,7	PS
					729,979		239,522	243,467
Leaver5 R	Jan/Jul 2008	Jun 2012	74,895	692,416	525,014		166,557				Criteria 3	Criteria 8	PS
	Jan/Jul 2008	Jun 2013	61,308	542,129	429,769		105,065				Criteria 3	Criteria 8	PS
					954,783		271,622
M Bellaman	Jul 2006	Jun 2009	20,915	201,725			(94,745)				Criteria 3	Criteria 5,6	PS
	Jul 2007	Jun 2010	13,860	159,598	97,159		(34,927)				Criteria 3	Criteria 5,6	PS
	Sep 2008	Aug 2011	10,204	71,529	71,530			19,869			Criteria 2	none	Retention
	Sep 2008	Aug 2012	20,408	129,589	143,060		36,189				Criteria 3	Criteria 5,7	PS
	Apr 2008	Apr 2011	61,885	800,303	433,814			316,025			Criteria 2	none	Retention
					745,563		(93,483)	335,894
Former
D Spencer	Jul 2007	Jun 2010	20,595	237,151			(78,570)			100	Criteria 3	Criteria 5,6	PS

1 Award value represents the number of shares granted at the share price on the grant date.

2 Current award expensed represents the 2009 financial year accrual value of the LTI or retentions determined by actuarial analysis. Negative amounts represent a part accrual reversal for the 2006 LTI which did not vest and the 2007 LTI that is not expected to vest.

3 The percentage forfeited during the year represents a reduction in the number of performance shares available to vest due to the highest level performance criteria not being achieved.

4 Mr Taylor received this award as part of his cessation of employment. 5 Refer to page 29 for further detail on Mr Leaver's awards.

Annual Consolidated Financial Report 2009 Lend Lease Corporation

3. Remuneration Report continued

e. Service Agreements – Audited

Non Executive Directors

Under the Company's constitution, at each Annual General Meeting one-third of the Directors and any other Director who will have been in office for three or more Annual General Meetings since he or she was elected (excluding the Managing Director) must retire from office and may submit themselves for re-election. Newly appointed Directors must seek election at the first meeting of shareholders following their appointment.

Executive Directors and Executives

Remuneration and other terms of employment for the key management personnel and other executives in the category of five highest paid are formalised in service agreements. All of the employment contracts contain the conditions below (other than where specified):

Length of contract	– No fixed term.
Benefits	– Australian resident executives are entitled to participate in the Lend Lease Employee Share Acquisition Plan;
	– Other benefits vary, however typically they may include health insurance, life insurance, car allowances or motor vehicle leases, leave entitlements, salary continuance and benefits provided by the Lend Lease Foundation;
	– Executives who are relocated receive relocation packages. Benefits provided vary but typically include accommodation, health insurance, transfer allowances, visas, shipping costs, school fees, home leave travel and tax advisory services.
STI participation	– Executives are eligible for an award of STI remuneration. Refer to Section 3b. of this Report for further details and conditions.
LTI participation	– Executives are eligible for an award of LTI remuneration. Refer to Section 3b. of this Report for further details and conditions.
Non compete and non solicitation clauses	– Non compete and non solicitation terms vary in each individual's employment contract.
	Termination of employment – Unless otherwise stated below, termination payments include base salary for the remainder of the notice period not served (up to 12 months), pro rata STI entitlements and LTI entitlements in accordance with the LTI program rules;
	– All contracts with executives may be terminated early by either party;
	– Immediate termination for misconduct or a serious breach of any of the terms of employment.

Other major provisions of the agreements relating to remuneration are set out on pages 24 to 30.

	Executive Directors and Executives continued
Executive Director	Key Employment Terms and Benefits	Termination Obligations
S McCann	Mr McCann's employment is terminated without cause by the Group prior to the vesting date, the award Grant number and value: 141,367 Lend Lease Corporation shares valued at A\$2,500,000 at award Grant number and value: 153,126 Lend Lease Corporation shares valued at A\$1,500,000 at award Mr McCann was appointed as Forfeiture: The retention award is forfeited if Mr McCann resigns or is terminated for cause, and the March 2010. must remain in employment with the Group to the vesting date. If March 2009, 30 September 2009 and 31 Managing Director for a term not exceeding five years effective 4 March 2009. No fixed term, however under the Lend Lease Corporation Constitution Mr McCann will undertake a medical assessment annually. Mr McCann's prior service to the Company is recognised. Retention awards (Refer to section 3b. for further details): vesting conditions set out above are not met. Vest date: three equal tranches on 31 Award date: 30 September 2008. Award date: 22 August 2007. Mr McCann Vest date: 30 June 2012. will vest on a pro rata basis. Vesting conditions: date. date. – – – – – –	Pro-rata payment under LTIP awards and, in respect of most recent LTIP award prior to termination, the pro-rate period is Base pay for the remainder of any notice period not served; Cash value of statutory entitlements and pro-rata benefits; Notice period: Six months (if instigated by the employee) or 12 Pro-rata target STI unless Board determines a different Termination payments provided for under the contract: months. months. Non solicitation period post termination: 12 Non compete period post termination: 12 months (if instigated by the Group). months. achievement level; extended by 12 – – – –
G Clarke	assignment was extended to 30 September 2009 on the existing terms with the exception of home leave Managing Director for a term of five years effective 16 November 2006. Furthermore, his international Mr Clarke was appointed as No fixed term however under the Lend Lease Corporation Constitution trips each term for children attending UK universities.	achievement of objectives) and LTI entitlements in accordance with value of pro rata benefits, pro rata STI entitlements (based on 60% payments made were in accordance with this agreement. Refer to On resignation of Mr Clarke on 27 February 2009, termination salary for the remainder of any notice period not served, cash Termination payments provided for under the contract: Base months. Non compete period post termination: Six months. Non solicitation period post termination: 12 months. section 3d. for details. the LTI program rules. Notice period: 12

3. Remuneration Report continued

Directors' Report continued

e. Service Agreements – Audited continued

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e. Service Agreements – Audited continued

Executive Directors and Executives continued

Executive	Key Employment Terms and Benefits	Termination Obligations
R Taylor	A\$5,500,000 at award date. Refer to Section 3d. of this Report for further details. Mr Taylor must remain in employment with the Group or the vesting date must fall within a period of notice of termination in order for each Forfeiture: The retention award is forfeited if Mr Taylor resigns and the vesting Grant number and value: 337,630 Lend Lease Corporation shares, valued at – 1 September 2009: 84,408 Lend Lease Corporation shares; and – 1 September 2008: 84,407 Lend Lease Corporation shares; – 1 September 2010: 84,408 Lend Lease Corporation shares. Vest date: Three remaining equal tranches on each of: conditions set out above are not met. Award date: 3 October 2006. Vesting conditions: Retention award: tranche to vest.	Notice period: Six months (if instigated by the employee) or 18 months (if instigated the Group on 10 April 2009. Termination payments made were in accordance with Mr Taylor resigned as a Director on 9 October 2008 and ceased employment with this agreement. Refer to section 3d. for details. by the Group).

Executive	Key Employment Terms and Benefits	Termination Obligations
Ooi E	Key Employment Terms and Benefits	Notice period: 6 months.
	No fixed term.	Termination payments:
	Mr Ooi is on international assignment to Singapore until August 2010.	payment in lieu of notice –
		up to six months STI at 60% of target value. –
	Retention award:
	Award date: 1 June 2007
	Vest date: 1 July 2009
	Grant number and value: 25,340 Lend Lease Corporation shares valued at A\$500,000 at award date.
	must remain in employment with the Group to the Mr Ooi Vesting conditions:
	vesting date. If Mr Ooi's employment is terminated without cause by the Group
	prior to the vesting date, the award will vest on a pro rata basis.
	Forfeiture: The retention award is forfeited if Mr Ooi resigns or is terminated for cause, and the vesting conditions set out above are not met.
	Performance award:
	Award date: 1 June 2007
	Vest date: August 2010
	Grant number and value: 50,680 Lend Lease Corporation shares valued at A\$1,000,000 at award date.
	Vesting conditions: Performance against four commercial in confidence financial
	with vesting at the committee's discretion up to full vesting. Remain employed with and strategic metrics assessed by an Assessment Committee of four members
	the Group to and not have given notice of resignation as at the date of sign-off
	of the FY10 Lend Lease Corporation Group financial statements by the Board. If
	terminated without cause by the Group prior to the vesting date, performance will
	be assessed and a pro-rata element based on time served and performance may
	vest as soon as practicable after termination.

3. Remuneration Report continued

e. Service Agreements – Audited continued

Agree e. Service	continued Executive Directors and Executives continued Audited – ments
Executive	Key Employment Terms and Benefits	Termination Obligations
M Coleman	Forfeiture: The retention award is forfeited if Mr Coleman resigns or is terminated for cause prior to the vesting date. must remain in employment with the Group and not under notice given by him at the vesting date. If Mr Coleman's employment is terminated without cause by the Group prior to the vesting date, Grant number and value: 80,214 Lend Lease Corporation shares to the value of A\$1,500,000 at the award date. the award will vest on a pro rata basis. Mr Coleman Vest date: 30 June 2010. Award date: 1 July 2007. Vesting conditions: Retention award:	Notice period: Six months.
W Hara	Forfeiture: The retention award is forfeited if Mr Hara resigns, gives notice to resign or is terminated for cause prior to vesting date. If Mr Hara's employment is terminated without cause by the Group prior to the vesting date, the award Mr Hara must remain in employment with the Group and not under notice given by him at the Grant number and value: 15,519 Lend Lease Corporation shares to the value of A\$144,250 at the award date. Vest date: The first anniversary of the award date. Award date: 15 September 2008. will vest on a pro rata basis. Vesting conditions: Retention award: the vesting date.	Notice period: Six months (if instigated by the Non solicitation period post termination: Six months (if instigated by the Non compete period post termination: Six employee) or 12 months. months. Group).
M Bellaman	Forfeiture: The retention award is forfeited if Mr Bellaman resigns or is terminated for cause prior to the vesting date. must remain in employment with the Group and not under notice given by him at the vesting date. If Mr Bellaman's employment is terminated without cause by the Group prior to the vesting date, Grant number and value: 61,885 Lend Lease Corporation shares to the value of US\$750,000 at the award date. the award will vest on a pro rata basis. Mr Bellaman April 2008. April 2011. Vesting conditions: Retention award: Award date: 1 Vest date: 1	Notice period: 30 days to six months (if instigated by the employee) or 30 days (if instigated by the – ESTI and LTI vest in accordance with plan Non solicitation period post termination: 12 Non compete period post termination: 12 – Pro-rata cash bonus in current year; Termination without cause: – One year base salary; – 60% of target STI; – Pro-rata retention; rules. months. months. Group).

Directors' Report continued 3. Remuneration Report continued

Executive	Key Employment Terms and Benefits	Termination Obligations
Menhinnitt M	No changes to employment conditions as specified on page 23.	Notice period: Six months (if instigated by the months (if instigated by the Non solicitation period post termination: Non compete period post termination: employee) or 12 months. months. Group). 12 12
N Martin	Forfeiture: The retention award is forfeited if Mr Martin resigns, gives notice to resign or is terminated for cause prior the vesting date. If Mr Martin's employment is terminated without cause by the Group prior to the vesting date, the must remain in employment with the Group and not under notice given by him at Mr Martin is on international assignment to Australia until April 2009 which has been extended to March 2010 Grant number and value: 7,197 Lend Lease Corporation shares to the value of A\$66,898 at the award date. Vest date: The first anniversary of the award date. award will vest on a pro rata basis. Award date: 15 September 2008. Mr Martin Vesting conditions: to the vesting date. Retention award: during the year. No fixed term.	Non solicitation period post termination: Notice period: Six months or by mutual Non compete period post termination: agreement. 24 months. 24 months.

3. Remuneration Report continued

e. Service Agreements – Audited continued Executive Directors and Executives continued

Directors' Report continued

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3. Remuneration Report continued

e. Service Agreements – Audited continued

Executive Directors and Executives continued

Executive	Key Employment Terms and Benefits	Termination Obligations
Leaver R	Award Dates: On joining and annually on 1 July up to and including 1 July 2011. Long Term Incentive Plan. Vest Date: 30 June 2012.	Notice period: Six months (if instigated by the months (if instigated by the Non compete period post termination: employee) or 12 Company).
	awarded during each period will be the award value divided by the volume weighted average price of Lend Lease Grant value and number: A\$333,333 initially and then A\$666,667 annually thereafter. The number of shares Corporation shares over the three months up to each grant date. Number of shares on joining – 17,628. Awarded 1 July 2008 – 57,267.	Non solicitation period post termination: months. months. 12 12
	Award Dates: On joining and annually on 1 July up to and including 1 July 2012. Vest Date: 30 June 2013.
	awarded during each period will be the award value divided by the volume weighted average price of Lend Lease Grant value and number: A\$272,727 initially and then A\$545,455 annually thereafter. The number of shares Corporation shares over the three months up to each grant date. Number of shares on joining – 14,423. Awarded 1 July 2008 – 46,885.
	Investment Management business against pre-determined commercial in confidence targets as soon as practicable metric one-third of the awards will Vesting conditions: The Personnel and Organisation Committee will assess three key performance metrics of the vest if performance meets or exceeds the target at any time during the performance period. after the sign off of the Group financial statements after the vesting date. For each
	Forfeiture: All awards will lapse if the executive resigns or is terminated for cause. If the executive is terminated by granted awards will vest subject to pro-rata for the period served from the relevant Grant date and the Committee's assessment of performance up to termination. the Group without cause during the performance period: ungranted awards will not be granted; – –

Executive	Key Employment Terms and Benefits	Termination Obligations
T Lombardo	Mr Lombardo must remain in employment with the Group and not under notice given by him at the vesting date. If Mr Lombardo's employment is terminated without cause by the Group prior to the vesting date, Forfeiture: The retention award is forfeited if Mr Lombardo resigns, gives notice to resign or is terminated for cause Grant number and value: 10,086 Lend Lease Corporation shares to the value of A\$93,751 at the award date. Vest date: The first anniversary of the award date. the award will vest on a pro rata basis. Award date: 15 September 2008. prior to the vesting date. Vesting conditions: Retention award:	Notice period: Six months (if instigated by the months (if instigated by the Non compete period post termination: Six Non solicitation period post termination: employee) or 12 months. Company). months. 12
B Soller	Forfeiture: The retention award is forfeited if Mr Soller resigns, gives notice to resign or is terminated for cause prior the vesting date. If Mr Soller's employment is terminated without cause by the Group prior to the vesting date, the Mr Soller must remain in employment with the Group and not under notice given by him at Grant number and value: 12,506 Lend Lease Corporation shares to the value of A\$116,250 at the award date. Vest date: The first anniversary of the award date. Award date: On or before 15 September 2008. award will vest on a pro rata basis. Vesting conditions: to the vesting date. Retention award:	Notice period: Six months (if instigated by the Non solicitation period post termination: Six months (if instigated by the Non compete period post termination: Six employee) or 12 Company). months. months.
D Spencer	the vesting date. If Mr Spencer's employment is terminated without cause by the Group prior to the vesting date, the Mr Spencer must remain in employment with the Group and not under notice given by him at Forfeiture: The retention award is forfeited if Mr Spencer resigns, gives notice to resign or is terminated for cause Grant number and value: 8,716 Lend Lease Corporation shares to the value of A\$81,018 at the award date. Vest date: The first anniversary of the award date. Award date: On or before 15 September 2008. award will vest on a pro rata basis. prior to the vesting date. Vesting conditions: Retention award:	Notice period: Six months (if instigated by the On cessation of employment payments were months (if instigated by the made in accordance with this agreement. Non solicitation period post termination: Non compete period post termination: employee) or 12 months. months. Company). 12 12

3. Remuneration Report continued

e. Service Agreements – Audited continued

3. Remuneration Report continued

f. Additional Information – Audited

Additional information in relation to key management personnel's equity holdings and transactions, loans and other transactions is contained in Note 35. of the Consolidated Financial Statements.

4. Other

a. Share Options

No share options were issued during the year by the Company or any of its controlled entities, and there are no such options on issue.

b. Indemnification and Insurance of Directors and Officers

The Company's Constitution provides for indemnification in favour of each of the Directors named on pages 2 to 4 of this Report; the Company Secretary, Mr W Hara; and officers of the Company or of wholly owned subsidiaries or related entities of the Company ('Officers') to the extent permitted by the Corporations Act 2001.

For related entities, the indemnification is provided unless the Directors determine otherwise. For unrelated entities in which the Group has an interest, deeds of indemnity may be entered into between Lend Lease Corporation Limited and the Director or Officer. Since the date of the last report, the Company has not entered into any separate deeds of indemnity.

In accordance with the Corporations Act 2001, the Constitution also permits the Company to purchase and maintain insurance or pay or agree to pay a premium for insurance for Officers against any liability incurred as an officer of the Company or of a related body corporate. This may include a liability for reasonable costs and expenses incurred in defending proceedings, whether civil or criminal, and whatever their outcome. During the year, the Company paid insurance premiums of A\$574,315 in respect of its Directors' and Officers' liability policies. Due to confidentiality obligations and undertakings of the policy, no further details in respect of the premium or policy can be disclosed.

c. Non Audit Services

During the year KPMG, the Group's auditor, performed certain other services in addition to its statutory duties.

The Board has considered the non audit services provided during the year by the auditor and, in accordance with written advice provided by resolution of the Risk Management and Audit Committee, is satisfied that the provision of those non audit services during the year by the auditor is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 for the following reasons:

• – All non audit services were subject to the corporate governance procedures adopted by the Group and have been reviewed by the Risk Management and Audit Committee to ensure they do not impact the integrity and objectivity of the auditor; and
• – The non audit services provided do not undermine the general principles relating to auditor independence as set out in APES 110 'Code of Ethics for Professional Accountants', as they did not involve reviewing or auditing the auditor's own work, acting in a management or decision making capacity for the Group, acting as an advocate for the Group or jointly sharing risks and rewards.

A copy of the Lead Auditor's Independence Declaration as required under Section 307C of the Corporations Act 2001 is included at the end of this Report.

Details of the amounts paid to the auditor of the Group, KPMG, and its related practices for audit and non audit services provided during the year are set out below.

	Consolidated
	June 2009 A\$000s	June 2008 A\$000s
Audit and Review of Financial Reports	7,398	6,816
Other Services
KPMG
International assignees tax services	119	26
Tax services	4	58
Other audit services	259	137
Other services	11	15
Total other services	393	236
Total audit and other services	7,791	7,052

4. Other continued

d. Rounding Off

Lend Lease Corporation Limited is a company of the kind referred to in the Australian Securities and Investments Commission Class Order 98/100 dated 10 July 1998 and, in accordance with that Class Order, amounts in the Consolidated Financial Statements and this Report have been rounded off to the nearest tenth of a million dollars or, where the amount is A\$50,000 or less, zero, unless specifically stated to be otherwise.

This Report is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors.

D A Crawford S B McCann Chairman Managing Director Sydney, 20 August 2009

Consolidated Financial Statements

Table of Contents

	Consolidated Financial Statements	1
	Income Statements	1
	Balance Sheets	2
	Statements of Changes in Equity	3
	Statements of Cash Flows	5
	Notes to the Consolidated Financial Statements	6
1.	Significant Accounting Policies	6
2.	Revenue	19
3.	Other Income	20
4.	Finance Costs	20
5.	Other Operating (Income) and Expenses	20
6.	Taxation	22
7.	Dividends and Earnings Per Share	25
8.	Cash and Cash Equivalents	26
9.	Loans and Receivables	26
10.	Inventories	28
11.	Investments Accounted for Using the Equity Method	29
12.	Investment Properties	33
13.	Other Financial Assets	34
14.	Property, Plant and Equipment	35
15.	Intangible Assets	36
16.	Defined Benefit Plan Asset	38
17.	Other Assets	40
18.	Trade and Other Payables	40
19.	Borrowings and Financing Arrangements	41
20.	Provisions	42
21.	Other Financial Liabilities	43
22.	Other Non Financial Liabilities	43
23.	Defined Benefit Plan Liability	44
24. 25.	Issued Capital and Treasury Shares Reserves	46 47
26.	Retained Earnings	47
27.	Contingent Liabilities	48
28.	Consolidated Entities	49
29.	Segment Reporting	52
30.	Capital Risk Management	55
31.	International Currency Management and Financial Instruments	55
32.	Commitments	62
33.	Notes to the Statements of Cash Flows	64
34.	Employee Benefits	65
35.	Key Management Personnel Disclosures	72
36.	Non Key Management Personnel Related Party Information	73
37.	Event Subsequent to Balance Date	75
	Directors' Declaration	76

Consolidated Financial Statements

Income Statements

Year ended 30 June 2009

		Consolidated		Company
	Note	June 2009 A\$m	June 20081 A\$m	June 2009 A\$m	June 2008 A\$m
Revenue
Revenue from the sale of development properties	2a	366.8	805.3
Revenue from the provision of services	2b	14,159.0	13,569.5
Finance revenue	2c	102.1	96.9	2.4	4.3
Other revenue	2d	157.1	206.2	134.8	729.8
Total revenue		14,785.0	14,677.9	137.2	734.1
Other Income	3	57.6	70.9	4.7	6.0
Expenses
Retail activities		(221.3)	(130.9)
Communities activities
Cost of properties sold		(581.4)	(747.3)
Other expenses		(552.3)	(235.7)
Public Private Partnerships (PPP) activities
Cost of inventories sold		(1,357.3)	(813.1)
Other expenses		(80.2)	(95.3)
Investment Management activities		(69.4)	(53.3)
Project Management and Construction activities
Cost of inventories sold		(11,805.2)	(11,883.9)
Other expenses		(462.9)	(369.3)
Corporate and administrative activities		(185.0)	(101.3)	(170.4)	(86.2)
Finance costs	4	(100.2)	(86.0)
Total expenses Share of (loss)/profit of associates accounted for		(15,415.2)	(14,516.1)	(170.4)	(86.2)
using the equity method	11	(64.3)	23.6
Share of (loss)/profit of joint venture entities
accounted for using the equity method	11	(96.2)	54.0
(Loss)/profit before tax		(733.1)	310.3	(28.5)	653.9
Income tax benefit/(expense)	6a	67.2	(62.5)	(7.5)	15.5
(Loss)/profit after tax		(665.9)	247.8	(36.0)	669.4
(Loss)/profit after tax attributable to:
Members of Lend Lease Corporation Limited	26	(653.6)	254.2	(36.0)	669.4
Minority interests		(12.3)	(6.4)
(Loss)/profit after tax		(665.9)	247.8	(36.0)	669.4
Basic/Diluted Earnings Per Share
Shares excluding treasury shares (cents)	7b	(164.7)	68.6
Shares on issue (cents)	7b	(154.1)	63.4

1 June 2008 profit after tax has been adjusted to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements' (refer to Note 1.29. 'Service Concession Arrangements').

Balance Sheets

As at 30 June 2009

		Consolidated		Company
	Note	June 2009 A\$m	June 20081 A\$m	June 2009 A\$m	June 2008 A\$m
Current Assets
Cash and cash equivalents	8	1,120.8	842.8		18.5
Loans and receivables	9	2,265.0	2,340.9	3,560.8	3,154.6
Inventories	10	564.9	773.1
Other financial assets	13	87.2	84.7	1.4	18.5
Other assets	17	67.8	43.2	1.0
Total current assets		4,105.7	4,084.7	3,563.2	3,191.6
Non Current Assets
Loans and receivables	9	495.1	454.8	66.4	63.6
Inventories	10	1,201.2	1,332.3
Investments accounted for using
the equity method	11	1,059.4	1,058.6
Investment properties	12	147.7	190.4
Other financial assets	13	384.4	391.4	1,365.0	1,384.7
Deferred tax assets	6c	209.2	121.5	15.6	21.5
Property, plant and equipment	14	130.1	145.2	0.2	0.2
Intangible assets	15	526.0	730.1
Defined benefit plan asset	16	30.0	28.7	30.0	28.7
Other assets	17	30.6	11.8
Total non current assets		4,213.7	4,464.8	1,477.2	1,498.7
Total assets		8,319.4	8,549.5	5,040.4	4,690.3
Current Liabilities
Trade and other payables	18	3,797.2	3,677.4	1,883.0	1,537.2
Provisions	20	227.2	183.8	39.1	43.3
Current tax liabilities	6b	27.7	53.7	34.2	74.6
Other financial liabilities	21	29.8	0.1	9.2	9.3
Other non financial liabilities Total current liabilities	22	0.2 4,082.1	0.3 3,915.3	1,965.5	1,664.4
Non Current Liabilities
Trade and other payables	18	220.8	170.1
Borrowings and financing arrangements	19	1,125.0	929.3
Provisions Deferred tax liabilities	20 6c	50.0 156.3	45.3 188.4	0.6	0.7
Other financial liabilities	21	191.6	200.8	42.5	51.1
Other non financial liabilities	22	0.6	0.8
Defined benefit plan liability	23	45.7	118.1
Total non current liabilities		1,790.0	1,652.8	43.1	51.8
Total liabilities		5,872.1	5,568.1	2,008.6	1,716.2
Net assets		2,447.3	2,981.4	3,031.8	2,974.1
Equity
Issued capital	24	1,195.9	854.7	1,195.9	854.7
Treasury shares	24	(63.2)	(62.6)	(88.2)	(87.6)
Reserves	25	34.3	7.2	195.5	192.5
Retained earnings	26	1,238.5	2,126.1	1,728.6	2,014.5
Total equity attributable to equity holders
of the parent		2,405.5	2,925.4	3,031.8	2,974.1
Minority interests		41.8	56.0
Total equity		2,447.3	2,981.4	3,031.8	2,974.1

1 June 2008 balance sheet has been adjusted to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements' (refer to Note 1.29. 'Service Concession Arrangements').

Statements of Changes in Equity

Year ended 30 June 2009

		Consolidated		Company
	Note	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
Issued Capital and Treasury Shares
Issued Capital
Opening balance at beginning of financial year Share issue via institutional placement (net of transaction costs)		854.7 296.2	854.4	854.7 296.2	854.4
Share issue – other Dividend Reinvestment Plan (DRP)		0.2 44.8	0.3	0.2 44.8	0.3
Closing balance at end of financial year	24	1,195.9	854.7	1,195.9	854.7
Treasury Shares
Opening balance at beginning of financial year		(62.6)	(67.4)	(87.6)	(92.5)
Treasury shares acquired		(14.8)	(1.6)	(14.8)	(1.5)
Treasury shares vested		14.2	6.4	14.2	6.4
Closing balance at end of financial year	24	(63.2)	(62.6)	(88.2)	(87.6)
Total issued capital and treasury shares		1,132.7	792.1	1,107.7	767.1
Reserves
Fair Value Revaluation Reserve
Opening balance at beginning of financial year		81.1	130.2	(0.1)	1.3
Revaluation (loss)/gain taken to equity (net of tax) Transfer of fair value revaluation reserve to income statement on		(36.7)	3.2	1.0	(1.4)
asset disposal (net of tax)			(58.5)
Effect of foreign exchange rate/other movements		0.1	6.2
Closing balance at end of financial year		44.5	81.1	0.9	(0.1)
Hedging Reserve
Opening balance at beginning of financial year		(6.8)	(9.9)
Adjustment on adoption of AASB Interpretation 12 (net of tax) Movements attributable to effective cash flow hedges taken to			15.3
equity on investments accounted for using the equity method (net of tax)1		(54.9)	(13.8)
Movements attributable to effective cash flow hedges taken to equity other (net of tax)		0.7	1.2
Effect of foreign exchange rate/other movements1		2.9	0.4
Closing balance at end of financial year		(58.1)	(6.8)	–	–
Foreign Currency Translation Reserve
Opening balance at beginning of financial year		(152.0)	(50.7)
Adjustment on adoption of AASB Interpretation 12 (net of tax) Movements attributable to translation of foreign operations1		126.1	(0.1) (102.0)
Transfer of foreign currency translation reserve to income
statement on return of capital		0.2	0.8
Closing balance at end of financial year		(25.7)	(152.0)	–	–
Equity Compensation Reserve
Opening balance at beginning of financial year		33.6	12.3	33.6	12.3
Movements attributable to unallocated treasury shares		2.0	21.3	2.0	21.3
Closing balance at end of financial year		35.6	33.6	35.6	33.6
Other Compensation Reserve
Opening balance at beginning of financial year Movements attributable to sale of unallocated treasury shares		54.4	55.3 (0.9)	54.4	55.3 (0.9)
Closing balance at end of financial year		54.4	54.4	54.4	54.4

1 June 2008 financial year movements have been adjusted to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements' (refer to Note 1.29. 'Service Concession Arrangements').

Statements of Changes in Equity continued

Year ended 30 June 2009

	Consolidated		Company
Note	June 2009 A\$m	June 20081 A\$m	June 2009 A\$m	June 2008 A\$m
Capital Reserve
Closing balance at beginning and end
of financial year	104.6	104.6	104.6	104.6
Minority Interest Acquisition Reserve
Opening balance at beginning of financial year	(107.7)	(124.7)
Effect of foreign exchange rate movements/other
movements	(13.3)	17.0
Closing balance at end of financial year	(121.0)	(107.7)	–	–
Total reserves	34.3	7.2	195.5	192.5
Retained Earnings
Opening balance at beginning of financial year	2,126.1	2,257.4	2,014.5	1,684.8
Adjustment on adoption of AASB Interpretation 12
(net of tax)		(68.2)
(Loss)/profit attributable to members of Lend
Lease Corporation Limited Dividends paid	(653.6) (205.1)	254.2 (341.0)	(36.0) (205.1)	669.4 (341.0)
Dividends on treasury shares	16.8	25.5
Dividends forgone pursuant to DRP	(44.8)		(44.8)
(Loss)/gain on utilisation of treasury shares
recognised directly in retained earnings	(0.9)	1.8		1.3
Other Closing balance at end of financial year 26	1,238.5	(3.6) 2,126.1	1,728.6	2,014.5
Minority Interests
Opening balance at beginning of financial year Share of movement in loss for financial year	56.0 (12.3)	81.5 (6.4)
Movements attributable to capital contributions/
acquisitions		3.1
Movements attributable to disposal		(12.4)
Effect of foreign exchange rate/other movements	(1.9)	(9.8)
Closing balance at end of financial year2	41.8	56.0	–	–
Total equity	2,447.3	2,981.4	3,031.8	2,974.1
Total Recognised Income and Expense
for Financial Year
Non profit/(loss) items recognised directly in equity	35.2	(111.4)	1.0	(1.4)
(Loss)/profit after tax for financial year	(665.9)	247.8	(36.0)	669.4
	(630.7)	136.4	(35.0)	668.0
Total income and expense for financial year attributable to:
Members of Lend Lease Corporation Limited Minority interests	(618.3) (12.4)	150.3 (13.9)	(35.0)	668.0
	(630.7)	136.4	(35.0)	668.0

1 June 2008 profit after tax has been adjusted to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements' (refer to Note 1.29. 'Service Concession Arrangements').

2 Mainly relates to Chelmsford Meadows 25% (June 2008: 25%) and Lend Lease Twin Waters 49% (June 2008: 49%).

Statements of Cash Flows

Year ended 30 June 2009

		Consolidated		Company
	Note	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
Cash Flows from Operating Activities
Cash receipts in the course of operations		14,457.1	13,590.1	66.2	54.6
Cash payments in the course of operations		(14,077.0)	(13,455.8)	(75.2)	(55.5)
Property development receipts		505.8	804.7
Property development expenditure		(494.1)	(891.4)
Interest received		66.8	150.9	5.5	4.4
Interest paid		(96.4)	(78.2)
Dividends/distributions received		107.4	118.0	73.5	674.7
Income tax (paid)/received in respect
of operations		(87.4)	30.4	(10.5)	27.2
Net cash provided by operating activities	33a	382.2	268.7	59.5	705.4
Cash Flows from Investing Activities
Sale/redemption of investments		112.9	1,075.5	19.0
Acquisition of investments		(381.1)	(509.7)	(0.9)	(18.2)
Acquisition of investment properties		(0.7)	(1.2)
Acquisition of business	33b		(17.0)
Disposal of other assets		1.6
Loans to related parties Acquisition of minority interest		(110.7) (1.0)	(88.2) (17.7)
Acquisition of consolidated entity (net of
cash acquired)	28b	(0.2)		(0.2)
Payment from settlement of derivatives		(44.8)
Disposal of consolidated entities
(net of cash disposed)	28c	10.1	(6.6)		173.9
Disposal of property, plant and equipment		2.0	0.1
Acquisition of property, plant and equipment Acquisition of intangible assets		(35.3) (26.7)	(58.0) (12.7)		(0.1)
Net cash (used in)/provided by investing
activities		(473.9)	364.5	17.9	155.6
Cash Flows from Financing Activities
Proceeds from share issue		302.5		302.5
Payment of share issue transaction costs		(6.3)		(6.3)
Net proceeds from borrowings		248.1
Dividends paid		(188.3)	(315.5)	(205.1)	(341.0)
Increase in financing of consolidated entities				(187.0)	(503.5)
Increase in capital of minority interest			3.1
Net cash provided by/(used in)
financing activities		356.0	(312.4)	(95.9)	(844.5)
Other Cash Flow Items
Effect of foreign exchange rate movements
on cash and cash equivalents		13.7	(28.1)
Net increase/(decrease) in cash
and cash equivalents		278.0	292.7	(18.5)	16.5
Cash and cash equivalents at beginning
of financial year		842.8	550.1	18.5	2.0
Cash and cash equivalents at end
of financial year	8	1,120.8	842.8	–	18.5

1. Significant Accounting Policies

Lend Lease Corporation Limited ('the Company') is domiciled in Australia. The consolidated financial report of the Company for the financial year ended 30 June 2009 comprises the Company and its subsidiaries (together referred to as the 'consolidated entity' or the 'Group') and the consolidated entity's interest in associates and jointly controlled entities.

The financial report was authorised for issue by the Directors on 20 August 2009.

1.1 Statement of Compliance

The consolidated financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board and the Corporations Act 2001. The consolidated financial report of the Group also complies with International Financial Reporting Standards (IFRS) and Interpretations adopted by the International Accounting Standards Board.

1.2 Basis of Preparation

The financial report is presented in Australian dollars and is prepared under the historical cost basis except for the following assets and liabilities, which are stated at their fair value: derivative financial instruments, fair value through profit or loss investments, investments available for sale, investment property and liabilities for cash settled share based compensation plans. Recognised assets and liabilities that are hedged are stated at fair value in respect of the risk that is hedged. Refer to the specific accounting policies in Notes 1. and 31e. for a summary of the basis of valuation of assets and liabilities measured at fair value.

The preparation of a financial report that complies with AASBs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.

These estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Information about critical accounting judgements in applying the Group's accounting policies is set out in Note 1.30.

The accounting policies set out below have been applied consistently to all financial years presented in the consolidated financial statements and by all entities in the consolidated entity.

Certain comparative amounts have been reclassified to conform with the current year's presentation.

Basis of Consolidation

The Group consolidation comprises all entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that are presently exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

The Group invests in special purpose entities (SPE) for trading and investment purposes. The SPE are consolidated if the substance of the relationship with the Group is such that the Group controls the SPE. The Group will also consolidate the SPE if the Group is expected to obtain the majority of the benefits and/or is exposed to the majority of the residual risks of the SPE or its net assets.

Intragroup balances and transactions, and any unrealised gains or losses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements. Investments in subsidiaries are carried at their cost of acquisition in the Company's financial statements. The Company sponsors a number of employee benefit vehicles, including employee share plans. Under AASBs, these vehicles, while not legally controlled, are required to be consolidated for accounting purposes.

1.3 New Accounting Standards

Certain new accounting standards and interpretations have been published that are not mandatory for the financial year ended 30 June 2009 but are available for early adoption. The Group has not applied the following standards in preparing this financial report. The Group's assessment of these new standards and interpretations is set out below:

– Revised AASB 3 'Business Combinations' and AASB 2008-3 'Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127'.

AASB 3 and AASB 2008-3 are applicable to annual reporting periods beginning on or after 1 July 2009. These standards change the application of acquisition accounting for business combinations and the accounting for noncontrolling (minority) interests. The standard will be applied prospectively from 1 July 2009 and therefore there will be no impact on prior periods.

1. Significant Accounting Policies continued

1.3 New Accounting Standards continued

– AASB 8 'Operating Segments' and AASB 2007-3 'Amendments to Australian Accounting Standards arising from AASB 8'.

AASB 8 and AASB 2007-3 are applicable to annual reporting periods beginning on or after 1 January 2009. These standards replace the presentation requirements of segment reporting in AASB 114 'Segment Reporting'. The standards may result in different segments, segment results and different types of information being reported in the segment note of the financial report. Any changes to disclosure are not expected to affect the financial results of the Group.

– Revised AASB 101 'Presentation of Financial Statements' (September 2007), AASB 2007-8 'Amendments to Australian Accounting Standards arising from AASB 101' and AASB 2007-10 'Further Amendments to Australian Accounting Standards arising from AASB 101'.

AASB 101, AASB 2007-8 and AASB 2007-10 are applicable to annual reporting periods beginning on or after 1 January 2009. These standards introduce the statement of comprehensive income and make changes to the statement of changes in equity. These standards are only concerned with disclosure in the financial report and application will not affect the financial results of the Group.

– Revised AASB 123 'Borrowing Costs' and AASB 2007-6 'Amendments to the Australian Accounting Standards arising from AASB 123'.

AASB 123 and AASB 2007-6 are applicable to annual reporting periods beginning on or after 1 January 2009. These standards remove the option to expense borrowing costs and require borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset to be capitalised. The standards will be applied prospectively and therefore there will be no impact on prior periods.

– Amended AASB 127 'Consolidated and Separate Financial Statements' and AASB 2008-3 'Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127'.

AASB 127 and AASB 2008-3 are applicable to annual reporting periods beginning on or after 1 July 2009. These standards change the accounting for investments in subsidiaries, in particular the impact of changing ownership interests in subsidiaries. The standards will be applied prospectively and therefore there will be no impact on prior periods.

– AASB 2008-1 'Amendments to Australian Accounting Standard – Share-based Payments: Vesting Conditions and Cancellations'.

AASB 2008-1 is applicable to annual reporting periods beginning on or after 1 January 2009. The standard changes the measurement of share-based payments that contain non-vesting conditions. The potential effect of AASB 2008-1 on the Group's financial statements is yet to be determined.

– AASB 2008-2 'Amendments to Australian Accounting Standards – Puttable Financial Instruments and Obligations arising on Liquidation'.

AASB 2008-2 is applicable to annual reporting periods beginning on or after 1 January 2009. The standard impacts entities with limited lives and entities that have units where the unit holder can put their units back to the entity for cash. Financial instruments may be classified as equity rather than financial liabilities where they are puttable by the holder back to the entity as equity. The potential effect of AASB 2008-2 on the Group's financial statements is yet to be determined.

– AASB 2008-5 'Amendments to Australian Accounting Standards arising from the Annual Improvements Project' and AASB 2008-6 'Further Amendments to Australian Accounting Standards arising from the Annual Improvements Process'.

AASB 2008-5 and AASB 2008-6 are applicable to annual reporting periods beginning on or after 1 January 2009 and 1 July 2009 respectively. The standards amend several AASBs terms of accounting recognition, measurement and presentation. The potential effect of AASB 2008-5 and AASB 2008-6 on the Group's financial statements is yet to be determined.

– AASB 2008-7 'Amendments to Australian Accounting Standard – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate'.

AASB 2008-7 is applicable to annual reporting periods beginning on or after 1 January 2009. The standard changes the recognition and measurement of dividend receipts as revenue, even if paid out of pre-acquisition, profits and addresses the accounting for a newly formed parent entity in the separate financial statements. The potential effect of AASB 2008-7 on the Group's financial results is yet to be determined.

– AASB 2008-8 'Amendments to Australian Accounting Standard – Eligible Hedged Items'.

AASB 2008-8 is applicable to annual reporting periods beginning on or after 1 July 2009. The standard clarifies the effect of using options as hedging instruments and the circumstances in which inflation risk can be hedged. The potential effect of AASB 2008-8 on the Group's financial results is yet to be determined.

– AASB 2009-2 'Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments'. AASB 2009-2 is applicable to annual reporting periods beginning on or after 1 January 2009. The standard may result in additional disclosures about financial instruments. The possible changes to disclosure are not expected to affect the financial results of the Group.

1. Significant Accounting Policies continued

1.3 New Accounting Standards continued

– AASB 2009-4 'Amendments to Australian Accounting Standards arising from the Annual Improvements Process' and AASB 2009-5 'Further Amendments to Australian Accounting Standards arising from the Annual Improvements Process'.

AASB 2009-4 is applicable to annual reporting periods beginning on or after 1 July 2009 and AASB 2009-5 is applicable to annual reporting periods beginning on or after 1 January 2010. The standards amend several AASBs terms of accounting recognition, measurement and disclosure. The potential effect of AASB 2009-4 and AASB 2009-5 on the Group's financial statements is yet to be determined.

– AASB Interpretation 15 'Agreements for the Construction of Real Estate'.

AASB Interpretation 15 is applicable to annual reporting periods beginning on or after 1 January 2009. The standard provides guidance on accounting for agreements for the construction of real estate by the seller under AASB 111 Construction Contracts or AASB 118 Revenue and on the timing of revenue recognition. The Group does not expect the standard to have any material effect on the financial results.

– AASB Interpretation 16 'Hedges of a Net Investment in a Foreign Operation'.

AASB Interpretation 16 is applicable to annual reporting periods beginning on or after 1 October 2008. The standard clarifies that net investment hedging can only be applied when the net assets of the foreign operation are recognised in the entity's consolidated financial statements. The Group does not expect the standard to have any material effect on the financial results of the Group.

– AASB Interpretation 17 'Distributions of Non Cash Assets to Owners' and AASB 2008-13 'Amendments to Australian Accounting Standards arising from AASB Interpretation 17 Distributions of Non Cash Assets to Owners'.

AASB Interpretation 17 and AASB 2008-13 are applicable to annual reporting periods beginning on or after 1 July 2009. The standards provide guidance in respect of measuring dividends paid by distributing non cash assets to the entity's shareholders. The potential effect of AASB Interpretation 17 and 2008-13 on the financial statements is yet to be determined.

– AASB Interpretation 18 'Transfers of Assets from Customers'.

AASB Interpretation 18 is applicable to annual reporting periods beginning on or after 1 July 2009. The standard provides guidance on the accounting for contributions from customers in the form of transfers of property, plant and equipment. The Group does not expect the standard to have any material effect on the financial results.

– 'Amendments to IFRS 2 Share Based Payments - Vesting Conditions and Cancellations'.

Amendments to IFRS 2 is applicable to annual reporting periods beginning on or after 1 January 2009. The amendments clarify that vesting conditions are service conditions and performance conditions only and specifies that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment. The Group does not expect the amendments to have any material effect on the financial results.

1.4 Revenue, Other Income and Profits

Revenue and Profits from the Sale of Development Properties

Revenue and profits from the sale of development properties are recognised in the income statement when:

• – The significant risks and rewards have been transferred to the buyer;
• – The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the development properties sold;
• – The revenue can be measured reliably and it is probable that the Group will receive the consideration due; and
• – The Group can measure reliably the costs incurred or to be incurred.

Revenue from the Provision of Services

Revenue from the provision of services is recognised in the income statement in proportion to the stage of completion of the transactions at the balance sheet date:

• – For property construction: the value of work performed using the percentage complete method, which is measured by reference to actual costs to date as a percentage of total forecast costs for each contract;
• – For property and funds management: property development and management fee entitlements for services rendered; and
• – For management of retirement villages: deferred management fees are recognised on an accruals basis based on a present value (or discounted) assessment of revenue earned from the management agreements on retirement villages at expected sales values of properties when the fees will be received.

1. Significant Accounting Policies continued

1.4 Revenue, Other Income and Profits continued

Dividends

Dividend income is recognised when the right to receive payment is established, usually on declaration of the dividend.

Rental Income

Rental income is recognised in the income statement on a straight line basis over the term of the lease unless another systematic basis is more appropriate. Lease incentives granted are recognised as an integral part of the total rental income.

Net Gains or Losses on Sale of Investments

Net gains or losses on sale of investments are recognised when an unconditional contract is in place.

Interest Income

Interest income is recognised on a time proportion basis using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income.

1.5 Income Taxes

Income tax on the profit or loss for the financial year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly to equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the financial year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous financial years.

Deferred tax is measured using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. Measurement of deferred tax is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but are intended to be settled on a net basis or be realised simultaneously.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

The Company is the head entity in the Australian Tax Consolidated Group comprising all the Australian wholly owned subsidiaries. The Company entered the Australian Tax Consolidation Regime effective 1 July 2002.

In addition to its own current and deferred tax amounts, the Company also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from the Australian wholly owned subsidiaries of the Australian Tax Consolidated Group (after elimination of intragroup transactions).

The Australian Tax Consolidated Group has entered into a tax funding arrangement that requires wholly owned Australian subsidiaries to make contributions to the Company for tax liabilities and deferred tax balances arising from external transactions occurring after the implementation of tax consolidation. The contributions are broadly calculated as if each entity paid tax on a stand alone basis.

The assets and liabilities arising under the Australian tax funding arrangement are recognised as intercompany assets and liabilities (at call) with a consequential adjustment to income tax expense/revenue.

1.6 Impairment

The carrying amounts of the Group's assets, investment properties (see Note 1.8.), inventories (see Note 1.14.) and deferred tax assets (see Note 1.5.) are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. For goodwill and intangible assets with an indefinite useful life, the recoverable amount is estimated annually. An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement unless an asset has been previously revalued through reserves.

1. Significant Accounting Policies continued

1.6 Impairment continued

Impairment losses recognised in respect of cash generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash generating unit (or group of units) and then to reduce the carrying amount of other assets in the unit (or group of units) on a pro rata basis.

Calculation of Recoverable Amount

The recoverable amount of the Group's investments in held to maturity securities and receivables is calculated as the present value of expected future cash flows, discounted at the original effective interest rate inherent in the asset. Cash flows relating to short term receivables are not discounted if the effect of discounting is immaterial (see Note 1.12.).

The recoverable amount of other assets is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre tax discount rate that reflects current market assessments of the time value of money and the risks specific to the assets. For assets that do not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which each asset belongs.

Reversals of Impairment

An impairment loss in respect of a held to maturity security or receivable is reversed if a subsequent increase in the recoverable amount can be related objectively to an event occurring after the impairment loss was recognised.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, an impairment loss is reversed when there is an indication that the impairment loss may no longer exist and there has been a change in estimates used to determine the recoverable amount.

An impairment loss is reversed (other than goodwill) only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

1.7 Investments

The Group classifies its investments in debt and equity securities in the following categories: financial assets at fair value through profit or loss, loans and receivables, held to maturity investments, and available for sale financial assets. The classification depends on the purpose for which the investments were acquired.

Financial Assets at Fair Value through Profit or Loss

This category has two subcategories: financial assets held for trading, and financial assets designated at fair value through profit or loss at inception. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term (held for trading) or if so designated by management either to eliminate a measurement or recognition inconsistency, or where a group of financial assets is managed, and its performance is evaluated, on a fair value basis (at inception). Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within 12 months of the balance sheet date.

Loans and Receivables

Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of trading the receivable. They are included in current assets, except for maturities greater than 12 months after the balance sheet date.

Held to Maturity Investments

Held to maturity investments are non derivative financial assets with fixed or determinable payments and fixed maturities that the Group's management has the positive intent and ability to hold to maturity.

Available for Sale Financial Assets

Available for sale financial assets are non derivatives that are either designated in this category or not classified in any other category. They are included in non current assets unless management intends to dispose of the investment within 12 months of the balance sheet date.

Recognition and Measurement Criteria

Purchases and sales of investments are recognised on trade date – the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Investments are de-recognised when the rights to receive cash flows from the investments have expired or been transferred and the Group has transferred substantially all the risks and rewards of ownership. Available for sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables and held to maturity investments are carried at amortised cost using the effective interest method. Realised and unrealised gains and losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are included in the income statement in the financial year in which they arise. Unrealised gains and losses arising from changes in the fair value of non monetary securities classified as available for sale are recognised in equity. When securities classified as available for sale are sold or impaired, the accumulated fair value adjustments are included in the income statement as gains or losses from investment securities.

1. Significant Accounting Policies continued

1.7 Investments continued

The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same, and discounted cash flow analysis. Refer to Note 31e. for a summary of the basis of valuation of investments measured at fair value.

At each balance sheet date the Group assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered in determining whether the securities are impaired. If any such evidence exists for available for sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss – is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement.

1.8 Investment Properties

Investment properties are stated at fair value based on periodic, but at least triennial, valuations by qualified external independent valuers. It is the policy of the Group to review the carrying value of each property every six months. Fair value is based on current prices in an active market for similar properties in the same location and condition. If this information is not available, the Group uses alternative calculation methods such as discounted cash flow projections, recent prices on less active markets or capitalised income projections. Capitalised income projections are based on a perpetuity of net operating income using a capitalisation rate derived from market evidence.

The valuations for the Senior Living properties are supported by actuarial assessments performed by Lend Lease based on its detailed knowledge and recent experience in the location and category of the property being valued. Any gain or loss arising from a change in fair value is recognised in the income statement. Rental income from investment properties is accounted for as described in Note 1.4.

When an item of owner occupied property, plant and equipment (see Note 1.15.) becomes an investment property following a change in its use, any difference arising at the date of transfer between the carrying amount of the item and its fair value is recognised directly in equity if it is a gain. Upon disposal of the item, the gain is transferred to retained earnings. Any loss is recognised immediately in the income statement.

When an item of self constructed property, plant and equipment becomes an investment property following a change in its use, any difference between the fair value of the property at that date and its previous carrying amount is recognised in the income statement.

Expenses capitalised to properties may include the cost of acquisition, additions, refurbishments, redevelopments, borrowing costs and fees incurred.

1.9 Associates

Associates (including partnerships) are entities in which the Group, as a result of its voting rights, has significant influence, but not control, over financial and operating policies. Investments in associates are accounted for using the equity method. The consolidated financial statements include the Group's share of the total recognised gains and losses of associates on an equity accounted basis, from the date that significant influence commences until the date that significant influence ceases. Investments in associates are carried at the lower of the equity accounted carrying amount and the recoverable amount. When the Group's share of losses exceeds the carrying amount of the associate (including assets that form part of the net investment in the associate), the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred obligations in respect of the associate.

Dividends from associates represent a return on the Group's investment and as such are applied as a reduction to the carrying value of the investment.

Unrealised gains arising from transactions with associates are eliminated against the investment in the associate to the extent of the Group's interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

Venture Capital Exemption

Investments held by Lend Lease Ventures' investment portfolio are carried at fair value even though the Group may have significant influence over those entities. This accounting is permitted by AASB 128 'Investments in Associates' which requires investments held by venture capital organisations to be excluded from its scope when those investments are designated as at 'fair value through profit or loss' from inception. The investments made by Lend Lease Ventures is considered to be venture capital in nature due to management of the investments on a portfolio basis, and is unrelated to the Group's key business activities. The application of this exemption is assessed on each investment made by Lend Lease Ventures.

Refer to Note 1.7. for analysis of recognition and measurement criteria of investments classified and measured at 'fair value through profit or loss'.

1. Significant Accounting Policies continued

1.10 Joint Venture Entities

A joint venture entity is an entity which has a contractual arrangement whereby two or more parties undertake an economic activity which is subject to joint control.

Investments in joint venture entities are accounted for using the equity method. Investments in joint venture entities are carried at the lower of the equity accounted carrying amount and recoverable amount.

When the Group's share of losses exceeds the carrying amount of the joint venture (including assets that form part of the net investment in the joint venture), the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred obligations in respect of the joint venture.

The Group's share of joint venture entities' profit or loss after tax is recognised in the income statement from the date joint control commences until the date joint control ceases. Other movements in joint venture entities' reserves are recognised directly in consolidated reserves.

Unrealised gains arising from transactions with joint venture entities are eliminated against the investment in the joint venture to the extent of the Group's interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

Investments held by Lend Lease Ventures' investment portfolio are carried at fair value even though the Group may have joint control over those entities. This accounting is permitted by AASB 131 'Interests in Joint Ventures' which requires investments held by venture capital organisations to be excluded from its scope when those investments are designated as at 'fair value through profit or loss' from inception.

1.11 Joint Venture Operations

A joint venture operation is a joint venture that is not in the form of an entity. The Group's interest in an unincorporated joint venture is brought to account by including its interest in the following amounts in the appropriate categories in the balance sheet and income statement:

• – Each of the individual assets employed in the joint venture;
• – Liabilities incurred by the consolidated entity in relation to the joint venture and the liabilities for which it is jointly and/or severally liable;
• – Expenses incurred in relation to the joint venture; and
• – Revenue earned in relation to the joint venture.

1.12 Trade and Other Receivables

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Cash flows relating to short term receivables are not discounted if the effect of discounting is immaterial.

A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset's carrying amount and fair value, which is estimated as the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the income statement.

1.13 Pre Contract and Project Bidding Costs

The Group expenses all pre contract and project bidding costs, unless there is a high degree of certainty that a contract will be entered into (at least preferred bidder status) and that the costs will be fully recoverable from contract revenues. Costs previously expensed are not subsequently reinstated when a contract award is achieved.

1.14 Inventories

Property Held for Sale

Property acquired for development and sale in the ordinary course of business is carried at the lower of cost and net realisable value. The net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The cost of property held for sale is based on the weighted average principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition, including borrowing costs incurred. Property expected to be sold within 12 months of the end of the financial year is classified as current inventory.

The recoverable amount of each holding is assessed at each balance date and a provision for diminution in value is raised by the Directors where cost (including costs to complete) exceeds net realisable value. In determining the recoverable amount, the Directors have regard to independent valuations obtained in accordance with Note 1.8., the market conditions affecting each property and the underlying strategy for selling the property.

Construction and Development Work in Progress

The gross amount of construction and development work in progress consists of costs attributable to work performed together with emerging profit and after providing for any foreseeable losses.

1. Significant Accounting Policies continued

1.15 Property, Plant and Equipment

Owned Assets

Items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation and impairment losses (see Note 1.6.). The cost of self constructed assets includes the cost of materials, direct labour and an appropriate proportion of production overheads.

Property that is being constructed or developed for future use as investment property is classified as property, plant and equipment and stated at cost until construction or development is complete, at which time it is reclassified as investment property.

Where an item of property, plant and equipment comprises components having different useful lives, they are accounted for as separate items of property, plant and equipment. The residual value, useful life and depreciation method applied to an asset are reassessed at least annually.

Leased Assets

Leases in which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Plant and equipment acquired by way of finance lease is stated at an amount equal to the lower of its fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and impairment losses (see Note 1.6.).

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.

Subsequent Expenditure

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial year in which they are incurred.

Depreciation

Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of items of property, plant and equipment, and major components that are accounted for separately. Amortisation is provided on leasehold improvements over the remaining term of the lease. Most plant is depreciated over a period not exceeding ten years, furniture and fittings over 15 years, motor vehicles over eight years and computer equipment over three years. Land is not depreciated.

1.16 IT Software Systems

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised over their estimated useful lives (three to five years).

Costs associated with developing or maintaining computer software programmes are recognised as an expense as incurred. Costs directly associated with producing identifiable and unique software products consolidated by the Group, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Direct costs include software development, employee costs and an appropriate portion of relevant overheads.

Computer software development costs recognised as assets are amortised over their estimated useful lives (three to five years).

1.17 Intangible Assets

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the net identifiable assets and contingent liabilities of the acquired subsidiary/associate at the date of acquisition. Goodwill on acquisition of subsidiaries is included in intangible assets as goodwill. Goodwill on acquisitions of associates is included in the carrying value of investments in associates. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Goodwill is not amortised. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

For the purposes of impairment testing, goodwill is allocated to cash generating units (or groups of cash generating units) that are expected to benefit from the synergies of the combinations, irrespective of whether other assets or liabilities of the acquiree are assigned to those units or groups of units.

1. Significant Accounting Policies continued

1.17 Intangible Assets continued

Management Agreements and Other Intangible Assets

Management agreements and other intangible assets acquired by the Group are stated at cost less accumulated amortisation and impairment losses (see Note 1.6.). Amortisation is charged to the income statement on a straight line basis over the estimated useful lives of the intangible assets. Management rights of an unlisted property fund are amortised over the useful life of ten years. The recoverable amount of other management agreements and other intangible assets is assessed using independent valuations or alternative calculation methods such as discounted cash flow projections. The rights are for an unlimited period and there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows.

1.18 Employee Benefits

Superannuation/Pension Obligations

Group companies operate various superannuation and pension schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Group has both defined benefit and defined contribution plans. A defined benefit plan is a pension plan that defines the amount of pension benefit an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity.

The asset and liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate or government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability.

All actuarial gains and losses as at 1 July 2004, the date of transition to Australian International Financial Reporting Standards, were recognised. In respect of actuarial gains and losses that have arisen subsequent to 1 July 2004 in calculating the consolidated entity's obligation in respect of a plan, to the extent that any cumulative unrecognised actuarial gain or loss exceeds 10% of the greater of the present value of the defined benefit obligation and the fair value of plan assets, that portion is recognised in the income statement over the expected average remaining working lives of the employees participating in the plan. Otherwise, the actuarial gain or loss is not recognised in the income statement, it is recognised in the balance sheet against the defined benefit plan asset or liability.

Past service costs are recognised immediately in the income statement, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, past service costs are amortised on a straight line basis over the vesting period.

For defined contribution plans, the Group pays contributions to publicly or privately administered superannuation/pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as an employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Current Employee Entitlements

The provisions for employee entitlements to wages, salaries, annual leave and sick leave represent present obligations resulting from employees' services provided up to the balance date, calculated at undiscounted amounts based on remuneration wage and salary rates that the Group expects to pay at each balance date, including related on-costs. Non accumulating non monetary benefits, such as medical care, housing, cars and free or subsidised goods and services, are expensed based on the net marginal cost to the consolidated entity as the benefits are taken by the employees.

Non Current Employee Entitlements

The provision for employee entitlements to long service leave represents the present value of the estimated future cash outflows to be made resulting from employees' services provided up to balance date. Consideration is given to expected future increases in wage and salary rates, including related on-costs and expected settlement dates based on turnover history.

Share Based Compensation

The Group operates cash settled and equity settled share based compensation plans that are referable to Lend Lease's share price. The fair value of the employee services received in exchange for the grant is recognised as an expense and a corresponding liability (if cash settled) or a corresponding increase in equity (if equity settled). The total amount to be expensed over the vesting period is determined by reference to the fair value of the services granted. At each balance sheet date, the entity revises its estimates of the entitlement due. It recognises the impact of revision of original estimates, if any, in the income statement, and a corresponding adjustment to a liability (in the case of cash settled) or equity (in the case of equity settled) over the remaining vesting period. Changes in entitlement for equity settled plans are not recognised if they fail to vest due to market conditions not being met.

1. Significant Accounting Policies continued

1.18.Employee Benefits continued

Termination Benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance date are discounted to present value.

Profit Sharing and Bonus Plans

The Group recognises a liability and an expense for bonuses and profit sharing, based on a formula that takes into consideration the profit attributable to the Company's shareholders after certain adjustments. The Group recognises a provision when contractually obliged or when there is a past practice that has created a constructive obligation.

1.19 Trade and Other Payables

Trade Creditors

Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed to the Group. Trade accounts payable are normally settled within 60 days. Trade and other payables are stated at amortised cost or cost when the impact of discounting would be immaterial.

Insurance Claims

A liability for outstanding claims is recognised in respect of Lend Lease's wholly owned special purpose captive insurance subsidiary. The liability covers claims incurred but not yet paid, claims incurred but not reported and the anticipated direct and indirect costs of settling those claims. The liability for outstanding claims is measured at the present value of the expected future payments, reflecting the fact that all the claims do not have to be paid out in the immediate future. The discount rates used are risk free rates.

Financial Guarantee Contracts

Financial guarantee contracts, including the Company guarantees of Group entities' borrowings, are recognised when issued as a financial liability. The liability is measured initially at fair value and subsequently at the higher of the best estimate to settle the obligation (see Note 1.23.) and the initial fair value less accumulated amortisation. Fair value is determined using a probability weighted discounted cash flow approach.

1.20 Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost and any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method.

Preference shares, which are mandatorily redeemable on a specific date, are classified as liabilities. The dividends on preference shares are recognised in the income statement as interest expense.

The fair value of the liability portion of a convertible bond is determined using a market interest rate for an equivalent non convertible bond. The amount is recognised as a liability on an amortised cost basis until extinguished on conversion or maturity of the bond. The remainder of the proceeds is allocated to the conversion option. This is recognised in equity, net of income tax.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance date.

1.21 Foreign Currency Translation

Functional and Presentation Currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The consolidated financial report is presented in Australian dollars, which is the Company's functional and presentation currency.

Transactions and Balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains or losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges in foreign operations.

Translation differences on non monetary items, such as equities held at fair value through profit or loss, are reported as part of the fair value gain or loss. Translation differences on non monetary items, such as equities classified as available for sale financial assets, are included in the fair value revaluation reserve in equity.

1. Significant Accounting Policies continued

1.21 Foreign Currency Translation continued

Group Companies

The results and balance sheet of all Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency (A\$) are translated into the presentation currency as follows:

• – Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;
• Income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and
• – All resulting exchange differences are recognised as a separate component of equity.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to the Foreign Currency Translation Reserve. When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or loss on sale.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

The Group uses derivative financial instruments to hedge its exposure to foreign exchange and interest rate risks arising from operating, financing and investing activities. Derivative financial instruments are recognised initially at fair value on the date a derivative contract is entered into and subsequently remeasured at their fair value. Recognition of any resultant gain or loss depends on the nature of the item being hedged.

The fair value of forward exchange contracts is their value at the current quoted forward price at the balance sheet date.

The fair value of interest rate swaps is the estimated amount the Group would receive or pay to terminate the swap at the balance sheet date, taking into account current interest rates and the current creditworthiness of the swap counterparties.

1.22 Derivative Financial Instruments and Hedging Activities

Hedging Derivatives

Fair Value Hedge

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Cash Flow Hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognised in equity. The gain or loss relating to the ineffective portion is recognised immediately in the income statement.

Amounts accumulated in equity are recycled to the income statement when the hedged item will affect profit or loss (for instance, when the forecast sale that is hedged takes place). However, when the forecast transaction that is hedged results in the recognition of a non financial asset (for example, inventory) or a liability, the gains or losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement.

Net Investment Hedge

Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in equity; the gain or loss relating to the ineffective portion is recognised immediately in the income statement.

Gains or losses accumulated in equity are included in the income statement on disposal of the foreign operation.

Held for Trading Derivatives

Certain derivative instruments do not qualify for hedge accounting or hedge accounting treatment is not sought. These instruments are classed as held for trading and changes in their fair value are recognised immediately in the income statement.

1. Significant Accounting Policies continued

1.23 Provisions

A provision is recognised on the balance sheet when the Group has a legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre tax rate that reflects current market assessments of the time value of money and, when appropriate, the risks specific to the liability.

A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring has either commenced or has been announced publicly. Future operating costs are not provided for.

A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract.

1.24 Borrowing Costs

Borrowing costs include interest, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with arrangement of borrowings and foreign exchange differences net of hedged amounts on borrowings.

Ancillary costs incurred in connection with the arrangement of borrowings are capitalised and amortised over the life of the borrowings.

Borrowing costs are expensed as incurred unless they relate to qualifying assets. Qualifying assets are assets that take more than six months to prepare for their intended use or sale. When funds are borrowed specifically for the acquisition or construction of a qualifying asset, the amount of borrowing costs capitalised are those incurred in relation to that borrowing.

1.25 Earnings Per Share

Basic earnings per share (EPS) is determined by dividing profit/(loss) after income tax attributable to members of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.

Diluted EPS is determined by adjusting the profit/(loss) after tax attributable to members of the Company and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.

1.26 Cash and Cash Equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks, bank overdrafts and other short term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Bank overdrafts (if applicable) are shown as a current liability on the balance sheet and are shown as a reduction to the cash balance in the statement of cash flows.

1.27 Share Capital

Ordinary shares are classified as equity. Preference share capital is classified as equity if it is non redeemable and any dividends are discretionary, or is redeemable but only at the Company's option. Dividends on preference share capital classified as equity are recognised as distributions within equity.

Preference share capital is classified as a liability if it is redeemable on a specific date or at the option of the shareholders or if dividend payments are not discretionary. Dividends thereon are recognised in the income statement as interest expense.

When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributable costs, is recognised as a change in equity.

Dividends on redeemable preference shares are recognised as a liability on an accrual basis. Other dividends are recognised as a liability in the financial year in which they are declared.

1.28 Goods and Services Tax

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the Australian Taxation Office (ATO) is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

1. Significant Accounting Policies continued

1.29 Service Concession Arrangements (SCA) (Private Financing Initiatives and Public Private Partnerships)

The Group equity accounts its investment in project companies with SCAs. In the project company holding the SCA AASB Interpretation 12 'Service Concession Arrangements' has been adopted retrospectively for the first time this year. The consideration receivable in respect of construction and services in the operational phase of the SCA is accounted for as a 'loan or receivable' and measured at amortised cost. Revenue arising from services provided will be recognised based on the fair value of each service provided. Borrowing costs are now required to be expensed rather than capitalised. Lifecycle costs will now be expensed as incurred rather than provided for as underlying services are provided.

The method by which the Group equity accounts its investment in each project company holding the SCA has not changed.

The retrospective adoption of AASB Interpretation 12 impacted the following:

• – Retained earnings: As at 1 July 2007 A\$68.2 million decrease; 12 months ended 30 June 2008 A\$11.2 million decrease;
• – Hedging reserve: As at 1 July 2007 A\$15.3 million increase; 30 June 2008 A\$8.7 million decrease; Movements attributable to effective cash flow hedges taken to equity (net of tax) and the effect of foreign exchange rates for 12 months ended 30 June 2008 have been adjusted to A\$(12.6) million and A\$0.4 million respectively;
• – Foreign currency translation reserve: As at 1 July 2007 A\$0.1 million decrease; 30 June 2008 A\$10.3 million increase; Movements attributable to the translation and hedging of foreign operations for 12 months ended 30 June 2008 have been adjusted to A\$(102.0) million;
• – Investments accounted for using the equity method: As at 1 July 2007 A\$6.7 million decrease; 30 June 2008 A\$18.1 million increase;
• – Non current loans and receivables: As at 1 July 2007 A\$26.4 million decrease; 30 June 2008 A\$30.4 million decrease;
• – Current trade and other payables: As at 1 July 2007 A\$nil impact; 30 June 2008 A\$10.3 million increase;
• Non current trade and other payables: As at 1 July 2007 A\$19.9 million increase; 30 June 2008 A\$13.0 million decrease; and
• – Investment commitments: As at 1 July 2007 A\$19.9 million decrease; 30 June 2008 A\$nil impact.

Recent industry interpretations relating to initial recognition of deferred tax liabilities on SCAs has resulted in the restatement of the impacts of AASB Interpretation 12 disclosed in the 31 December 2008 Half Year Consolidated Financial Report.

The impact on the Group's basic and diluted earnings per share for shares on issue was an increase 0.9 cents for the year ended 30 June 2009 (June 2008: decrease 2.8 cents) and earnings per share for shares excluding treasury shares was an increase 0.9 cents for the year ended 30 June 2009 (30 June 2008: decrease 3.0 cents).

1.30 Accounting Estimates and Judgements

The estimates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Key Sources of Estimation Uncertainty

Note 15a. 'Goodwill' contains information about the assumptions and their risk factors relating to goodwill impairment.

Impairment of Goodwill and Management Agreements

The Group assesses whether goodwill is impaired at least annually in accordance with Note 1.6. These calculations involve an estimation of the recoverable amount of the cash generating units to which the goodwill is allocated. The recoverable amount of management agreements is assessed annually in accordance with Note 1.17.

Valuation of Assets and Recoverable Amounts

The Group assesses the fair value of certain assets by using estimation techniques where there is no available market price. The Group assesses the recoverability of the carrying value of certain assets using estimations of their recoverable amount, including the deferred management rights receivable. For investment properties and inventories refer to Notes 1.8. and 1.14. Refer to Note 31e. for a summary of the basis of valuation of financial assets measured at fair value.

Defined Benefit Superannuation Fund Obligations

Various actuarial assumptions are utilised in determining the Group's defined benefit superannuation/pension fund obligations. These assumptions are discussed in Notes 16g. and 23g. 'Principal Actuarial Assumptions'.

Share Based Compensation

The Group assesses the fair value of its cash settled and equity settled share based compensation plans. The fair value assigned represents an estimate of the value of the award to employees, which requires judgements on Lend Lease's share price and whether vesting conditions will be satisfied. Refer to Note 1.18. for the accounting policy for share based compensation.

1. Significant Accounting Policies continued

1.30 Accounting Estimates and Judgements continued

Critical Accounting Judgements in Applying the Group's Accounting Policies

In the process of applying the Group's accounting policies, the Group makes various judgements, apart from those involving estimations, that can significantly affect the amounts recognised in the consolidated financial statements. These include:

• – When substantially all the significant risks and rewards of ownership of development properties are transferred to the purchaser;
• – The percentage completion on construction work performed; and
• – Whether the substance of the relationship between the Group and a special purpose entity indicates that the special purpose entity should be consolidated by the Group.

		Consolidated		Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
2. Revenue
a. Revenue from the Sale of
Development Properties	366.8	805.3	–	–
b. Revenue from the Provision of Services
Retail Communities	56.8 147.7	55.5 86.4
Public Private Partnerships	1,481.6	943.0
Investment Management	53.4	58.8
Project Management and Construction	12,419.5	12,425.8
Total revenue from the provision of services	14,159.0	13,569.5	–	–
c. Finance Revenue
Interest Income
Related party
Consolidated entities				0.8
Associates and joint venture entities	34.8	21.4
Other corporations	55.0	65.7	2.4	3.5
	89.8	87.1	2.4	4.3
Interest discounting Total finance revenue1	12.3 102.1	9.8 96.9	2.4	4.3
d. Other Revenue
Dividend Income
Related party
Consolidated entities			71.8	674.6
Associates and joint venture entities Other corporations	1.4	1.1 48.8	1.0	0.1
	1.4	49.9	72.8	674.7
Other
Rental income Hotel revenue	71.3 43.8	76.0 52.0
Distributions received	14.3	15.1
Related party
Consolidated entities – corporate management fees			47.6	41.6
Consolidated entities – guarantee fees Other	26.3	13.2	14.4	13.4 0.1
	155.7	156.3	62.0	55.1
Total other revenue	157.1	206.2	134.8	729.8
Total revenue	14,785.0	14,677.9	137.2	734.1

1 A\$3.3 million relates to financial assets classified as fair value through profit or loss (June 2008: A\$0.9 million).

		Consolidated	Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
3. Other Income
Net gain on disposal/redemption of available for sale
financial assets		67.0
Net gain on disposal of other assets and liabilities	57.2	0.2
Fair value gain on held to maturity negotiable instruments	0.4
Fair value gain on derivative contracts held for trading
(excluding foreign exchange derivatives)		3.7
Related party Consolidated entities – amortisation of financial
guarantee contract liabilities			3.6	6.0
Other			1.1
Total other income	57.6	70.9	4.7	6.0
4. Finance Costs
Finance costs
Non interest finance costs	4.2	3.6	–	–
Interest finance costs Related party
Associates and joint venture entities	0.7	1.4
Other corporations	94.9	76.7
Less: Capitalised interest finance costs		(1.3)
	95.6	76.8	–	–
Interest discounting	0.4	5.6	–	–
Total finance costs1	100.2	86.0	–	–
5. Other Operating (Income) and Expenses
Loss/(profit) before income tax has been determined after:
Depreciation and amortisation
Depreciation of property, plant and equipment Less: Capitalised depreciation	25.0 (1.4)	24.0 (2.1)	0.1	0.1
Amortisation of management agreements	4.0	2.9
Amortisation of other intangibles	5.0	2.2
Total depreciation and amortisation	32.6	27.0	0.1	0.1
Net loss on sale of property, plant and equipment	–	0.3	–	–

1 No interest costs were incurred on financial assets or liabilities classified as fair value through profit or loss.

			Consolidated	Company
	Note	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
5. Other Operating (Income) and Expenses continued
Operating lease expense
Operating lease rental expense		66.9	52.6
Operating lease equipment expense		4.9	5.9
Total operating lease expense		71.8	58.5	–	–
Employee benefit expenses		1,617.1	1,432.7	36.9	24.5
Superannuation accumulation plan expense		20.6	19.3	1.2	1.2
Net defined benefit plan (income)/expense impacting all
business segments is as follows:
Current service cost		28.0	38.9	6.3	5.8
Interest on obligation		49.9	45.8	6.7	6.0
Expected return on plan assets		(48.2)	(53.4)	(8.2)	(9.0)
Past service cost		0.2	0.4	0.2	0.4
Curtailment gain		(55.3)
Actuarial gain recognised			(2.4)		(2.4)
Total net defined benefit plan (income)/expense	16d, 23d	(25.4)	29.3	5.0	0.8
Net foreign exchange loss/(gain)		16.9	(3.0)	0.3	1.8
Fair value loss on remeasurement of investment properties	12	62.2	38.2	–	–
Net fair value loss on equity derivative swaps		48.4	–	–	–
Bad debt expense		1.8	0.4	–	–
Expenses include impairments/provisions raised/ (written back) relating to:
Loans and receivables
Related party – consolidated entities				70.0
Related party – associates and joint venture entities1		42.8
Other		27.6	11.4
Property inventories		230.9	126.7
Investments accounted for using the equity method2		67.2	3.0
Impairment of investment in Group entities at cost Property, plant and equipment		20.3	0.4	25.8
Other financial assets		16.5	2.8
Other intangibles		0.6
Investment properties		0.3
Goodwill		252.9
Employee benefits		42.8	35.1	1.2	2.0
Maintenance and warranty		(6.3)	(19.0)
Restructure (including employee terminations)		91.0	(3.3)
Other provisions		21.2	14.6	2.7	13.2

1 June 2009 relates to the Communities segment.

2 Impairment of A\$67.2 million includes A\$(1.2) million impairment reversal.

	Consolidated		Company
	June 2009 A\$000s	June 2008 A\$000s	June 2009 A\$000s	June 2008 A\$000s
Auditors' Remuneration Amounts received or due and receivable by the auditors of Lend Lease Corporation for:
Audit and Review of Financial Reports	7,398	6,816	1,188	1,573
Other Services International assignees tax services Tax services Other audit services Other services	119 4 259 11	26 58 137 15
	393	236	–	–

		Consolidated		Company
		June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
6.	Taxation
a.	Income Tax (Benefit)/Expense
	Recognised in the Income Statement
	Current Tax (Benefit)/Expense
	Current year	81.7	91.9	(0.3)	(9.7)
	Adjustments for prior years	0.2	(18.5)	2.1	(1.2)
	Benefits of tax losses recognised	(21.3)	(7.8)		(6.6)
	Deferred Tax (Benefit)/Expense	60.6	65.6	1.8	(17.5)
	Origination and reversal of temporary differences	(127.8)	(4.5)	5.7	2.0
	Reduction in tax rate		1.4
	Total income tax (benefit)/expense	(67.2)	62.5	7.5	(15.5)
	Reconciliation of Income Tax (Benefit)/Expense
	(Loss)/profit before tax	(733.1)	310.3	(28.5)	653.9
	Income tax using the domestic corporation tax rate (30.0%)	(219.9)	93.1	(8.6)	196.2
	Non assessable dividends	(0.5)	(14.9)	(21.8)	(202.4)
	Non assessable income	(3.6)	(8.4)
	(Loss)/profits accounted for using the equity method	(7.3)	4.4
	Non allowable expenses	98.8	12.2	4.0	2.0
	Net recovery of tax losses Write off/(recovery) of tax temporary differences	(18.2) 103.4	(17.5) 12.1	4.1 27.0	(6.5) (7.1)
	Temporary differences recognised/recovered	(19.0)	(8.9)
	Variation in tax rates	(2.9)	8.7
	Income tax expense relating to wholly owned
	Australian subsidiaries Recovery of income tax expense from wholly owned			79.4	111.2
	Australian subsidiaries			(79.4)	(111.2)
Other		1.8	0.2	0.7	3.5
	Under/(over) provided in prior years	0.2	(18.5)	2.1	(1.2)
		(67.2)	62.5	7.5	(15.5)
	Deferred Tax Recognised Directly in Equity
	Relating to:
	Fair value revaluation reserve	(7.9)	(15.4)	0.1	(0.2)
	Hedging reserve	(3.2)	1.7
	Foreign currency translation reserve on equity accounted
	investment	3.4
		(7.7)	(13.7)	0.1	(0.2)
b.	Current Tax Liabilities	27.7	53.7	34.2	74.6

Current tax liabilities represent the amount of income taxes payable in respect of current and prior financial years where the amount of income taxes payable exceeds payments to date.

		Consolidated				Company
	June 2009		June 2008		June 2009		June 2008
	Assets A\$m	Liabilities A\$m	Assets A\$m	Liabilities A\$m	Assets A\$m	Liabilities A\$m	Assets A\$m	Liabilities A\$m
Recognised Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are attributable to the following:
Loans and receivables	21.4	(11.4)	11.4	(30.4)
Inventories	45.9	(199.5)	25.3	(176.0)
Other financial assets	12.1	(38.1)	0.6	(38.0)		(0.4)		(0.3)
Other assets		(0.7)
Investments accounted for using the equity method	19.7	(165.5)	4.4	(171.1)
Investment properties				(2.0)
Property, plant and equipment	22.8	(0.4)	12.8	(0.3)
Intangible assets	0.1
Defined benefit plan asset		(9.0)		(8.6)		(9.0)		(8.6)
Trade and other payables	96.9	(0.1)	72.4	(0.6)	12.4		14.2
Provisions	69.1		66.2		13.1		13.1
Other financial and non financial liabilities	11.7		4.1	(0.1)
Defined benefit plan liability	12.8		33.1
Unused revenue tax losses recognised	169.8		112.0
Items with a tax base but no carrying value	38.0	(42.7)	35.4	(17.5)	1.2	(1.7)	4.5	(1.4)
Total deferred tax assets/(liabilities)	520.3	(467.4)	377.7	(444.6)	26.7	(11.1)	31.8	(10.3)
Deferred tax set off	(311.1)	311.1	(256.2)	256.2	(11.1)	11.1	(10.3)	10.3
Net deferred tax assets/(liabilities)	209.2	(156.3)	121.5	(188.4)	15.6	–	21.5	–

6. Taxation continued

c. Deferred Tax Assets and Liabilities

Annual Consolidated Financial Report 2009 Lend Lease Corporation

Deferred Tax Assets and Liabilities continued c.
Consolidated	1 July 2008 A\$m	Recognised in Income A\$m	Recognised in Equity A\$m	FX/Other A\$m	30 June 2009 A\$m	1 July 2007 A\$m	Recognised in Income A\$m	Recognised in Equity A\$m	FX/Other A\$m	30 June 2008 A\$m
Movement in temporary differences during the Recognised Deferred Tax Assets and Liabilities continued financial year:
Loans and receivables Other financial assets Other assets Inventories	(19.0) (150.7) (37.4)	(0.7) 27.9 15.2 4.7	0.3 7.9	(18.1) (1.2) 0.8	(153.6) (26.0) (0.7) 10.0	(10.8) (122.5) (47.5) (20.6)	(7.3) (42.1) (6.2) 20.6	(0.4) 15.4	(0.5) 13.9 0.9	(19.0) (150.7) (37.4)
Investments accounted for using the equity method Property, plant and equipment Investment properties	(166.7) (2.0) 12.5	48.4 2.0 9.4	(0.5)	(27.0) 0.5	(145.8) 22.4	(185.0) (2.9) 16.8	(4.9) (2.2) 0.8	(1.3)	(2.1) 24.5 0.1	(166.7) (2.0) 12.5
Defined benefit plan asset Trade and other payables Intangible assets	(8.6) 71.8	(0.4) 12.9 0.1		12.1	(9.0) 96.8 0.1	(6.9) 74.8	(1.7) 1.7		(4.7)	(8.6) 71.8
Items with a tax base but no carrying value Other financial and non financial liabilities Unused revenue tax losses recognised1 Defined benefit plan liability Provisions	4.0 112.0 17.9 66.2 33.1	(21.2) (27.9) 6.2 7.1 44.1		(3.3) 0.6 0.9 13.7 5.3	(4.7) 11.7 12.8 169.8 69.1	4.8 43.9 63.1 72.1 32.1	(0.5) (5.3) (9.0) 7.3 51.9		(4.2) (0.3) (5.5) (12.0) (5.2)	66.2 4.0 112.0 17.9 33.1
Total deferred tax assets/(liabilities)	(66.9)	127.8	7.7	(15.7)	52.9	(88.6)	3.1	13.7	4.9	(66.9)
Movement in temporary differences during the Defined benefit plan asset Trade and other payables Loans and receivables Other financial assets financial year: Company	(0.3) (8.6) 14.2	(0.4) (1.8)	(0.1)		(0.4) (9.0) 12.4	(0.2) (0.5) (6.9) 18.2	(1.7) (4.0) 0.2	0.2		(0.3) (8.6) 14.2
Items with a tax base but no carrying value Total deferred tax assets/(liabilities) Provisions	21.5 13.1 3.1	(5.7) (3.5)	(0.1)	(0.1) (0.1)	(0.5) 15.6 13.1	(1.1) 13.8 23.3	(2.0) (0.7) 4.2	0.2		21.5 13.1 3.1
									–

6. Taxation continued

1 Primarily relates to the recognition of unused revenue tax losses in the USA.

6. Taxation continued

c. Deferred Tax Assets and Liabilities continued

		Consolidated	Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
Unrecognised Deferred Tax Assets Deferred tax assets have not been recognised in respect of the following items:
Capital losses Revenue losses Deductible temporary differences	70.4 108.0 165.3	92.1 97.6 57.6	6.0	9.1
Total unrecognised deferred tax assets	343.7	247.3	6.0	9.1

Temporary differences associated with investments in subsidiaries within the Company have not been recognised. The unrecognised deferred tax asset of A\$343.7 million includes A\$42.0 million that will expire by 2027.

		Franked Amount	Company
	Cents Per Share	Per Share %	June 2009 A\$m	June 2008 A\$m
7. Dividends and Earnings Per Share
a. Dividends1
Interim Dividend
December 2008 – paid 1 April 2009 December 2007 – paid 26 March 2008	25 43	60 40	113.5	172.5
Final Dividend
June 2009 – declared subsequent to reporting date
(payable 25 September 2009)2	16	100	73.2
June 2008 – paid 26 September 2008	34	45		136.4
			186.7	308.9

1 Includes dividends paid on treasury shares. Refer to Note 26. 'Retained Earnings' for further details regarding the impact of treasury shares on dividend payments and retained earnings.

2 No provision for this dividend has been recognised in the balance sheet at 30 June 2009 as it was declared after the end of the financial period.

Dividend Franking

The final dividend of 16 cents per share declared since 30 June 2009 will be 100% franked. The interim dividend paid on 1 April 2009 (25 cents per share) was 60% franked.

The dividend franking account balance at 30 June 2009 is A\$98.7 million based on a 30% tax rate (30 June 2008: A\$86.4 million). This is calculated after adjusting for franking credits which will arise from the payment of income tax provided in the financial statements and tax losses utilised in the current financial year. It excludes the A\$31.4 million (June 2008: A\$26.3 million) franking debit impact of the proposed dividend of A\$73.2 million (June 2008: A\$136.4 million).

			Consolidated
		June 2009		June 2008
		Shares Excluding Treasury Shares	Shares on Issue	Shares Excluding Treasury Shares	Shares on Issue
7. Dividends and Earnings Per Share continued
b. Basic/Diluted Earnings Per Share (EPS)
(Loss)/profit attributable to members of Lend Lease Corporation Limited used in calculating
basic/diluted EPS	A\$m	(653.6)	(653.6)	254.2	254.2
Weighted average number of ordinary shares	m	396.9	424.1	370.8	401.1
Basic/diluted EPS	cents	(164.7)	(154.1)	68.6	63.4

	Consolidated		Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
8. Cash and Cash Equivalents
Cash	289.3	281.9		18.5
Short term investments	831.5	560.9
Total cash and cash equivalents	1,120.8	842.8	–	18.5

Short term investments earn variable rates of interest which averaged 3.4% per annum during the year ended 30 June 2009 (30 June 2008: 6.1%).

Negotiable instruments with a maturity greater than three months but less than 12 months (June 2009: A\$70.8 million; June 2008: A\$28.5 million) are classified as 'Fair Value Through Profit or Loss' and 'Held to Maturity' (refer to Note 13. 'Other Financial Assets'). These negotiable instruments have an average maturity of seven months.

	Consolidated		Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
9. Loans and Receivables
Current – Measured at Amortised Cost
Trade debtors	1,464.9	1,555.8
Less: Impairment	(39.2)	(19.3)
	1,425.7	1,536.5	–	–
Related party Consolidated entities1			3,630.0	3,152.3
Associates and joint venture entities	106.8	77.8
Less: Impairment	(15.5)		(70.0)1
Managed property funds	22.3	29.4
Retentions Other receivables	410.5 317.8	442.3 257.2	0.8	2.3
Less: Impairment	(2.6)	(2.3)
	2,265.0	2,340.9	3,560.8	3,154.6
Non Current – Measured at Amortised Cost
Loans to employees Related party	0.8	0.7
Consolidated entities			66.4	63.5
Associates and joint venture entities2	526.0	326.9
Less: Impairment	(165.5)	(72.8)
Retentions	68.1	96.5
Other receivables	66.2	103.7		0.1
Less: Impairment	(0.5)	(0.2)
	495.1	454.8	66.4	63.6
Total loans and receivables	2,760.1	2,795.7	3,627.2	3,218.2

1 Includes working capital balances with controlled entities and reflects the funding of general working capital items. All working capital balances are non interest bearing and repayable on demand. The carrying values of the Company's investments in consolidated entities and intercompany receivables have been reviewed for indicators of impairment and impairment recognised where appropriate.

2 Includes redeemable convertible notes issued by Lend Lease Primelife Limited, including embedded derivatives measured at fair value. Refer to Note 36. 'Non Key Management Personnel Related Party Information' for further details.

9. Loans and Receivables continued

During the financial year ended 30 June 2009, the Group earned fee income of A\$0.6 million (30 June 2008: A\$3.0 million) relating to loans and receivables.

The ageing of trade debtors as at the reporting date is: current A\$1,170.6 million (30 June 2008: A\$1,251.6 million); past due A\$294.3 million (30 June 2008: A\$304.2 million) of which A\$255.1 million has not been impaired (June 2008: A\$284.9 million). 'Past due' is defined under accounting standards to mean any amount outstanding for one or more days after the contractual due date. Of the total trade debtors, 9.5% (30 June 2008: 6.2%) are aged greater than 90 days. Other than trade debtors, no other loans and receivables are considered past due at 30 June 2009 (30 June 2008: A\$nil).

At 30 June 2009 current other receivables includes A\$57.5 million of cash that was pledged as collateral against bank letter of credit facilities for equity commitments (June 2008: A\$nil).

		Consolidated	Company
	June 2009 A\$m	June 20081 A\$m	June 2009 A\$m	June 2008 A\$m
Impairment
Carrying amount at beginning of financial year	94.6	56.8
Bad and doubtful debts impairment loss net of provisions raised	70.4	11.4	70.0
Other movements (including foreign exchange
movements)2	58.3	26.4
Carrying amount at end of financial year	223.3	94.6	70.0	–
Total impairment as a percentage of total loans
and receivables	7.5%	3.3%	1.9%	–

1 June 2008 has been adjusted to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements' (refer to Note 1.29. 'Service Concession Arrangements').

2 Other movements primarily relates to the application of joint venture losses against loan stock interests held by Lend Lease in relation to these joint ventures.

The credit quality of all loans and receivables, including those neither past due nor impaired, is assessed and monitored on an ongoing basis.

The increase in the impairment provision during the financial year is a result of deteriorating economic and market conditions which the Group considers will affect the credit worthiness of certain entities. The impairment provision relates to specific loans and receivables that have been identified as being impaired, including related party loans where the Group's interest in a development was via an investment accounted for using the equity method.

During the financial year ended 30 June 2009, there were no financial assets renegotiated (30 June 2008: A\$76.5 million).

		Consolidated		Company
	Note	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
10. Inventories
Current
Development properties at the lower of cost and net
realisable value	10a	327.4	437.2
Construction work in progress	10b	237.5	335.9
Total current		564.9	773.1	–	–
Non Current
Development properties at the lower of cost and net
realisable value	10a	1,201.2	1,332.3
Total inventories		1,766.1	2,105.4	–	–
a. Development Properties
(Completed and Work in Progress)
Total development properties held for sale comprises:
Bluewater, Kent Urban Communities, Australia		506.2 491.4	520.7 448.8
Urban Communities (Crosby), UK		244.9	386.7
Victoria Harbour, Melbourne		107.4	96.2
Hyatt Coolum, Sunshine Coast		74.0	57.3
Senior Living Projects, Australia		50.6	51.1
Stratford, UK Other		54.1	95.8 112.9
Total development properties		1,528.6	1,769.5	–	–
b. Construction Work in Progress
Construction work in progress comprises:
Contract costs incurred to date		60,859.7	49,311.9
Profit recognised to date		2,543.5 63,403.2	1,977.1 51,289.0	–	–
Less: Progress billings received and receivable
on completed contracts		(64,522.6)	(52,110.4)
Net construction work in progress		(1,119.4)	(821.4)	–	–
Amounts due from customers – inventories1		237.5	335.9
Amounts due to customers – trade payables2	18	(1,356.9)	(1,157.3)
		(1,119.4)	(821.4)	–	–
Advances on construction projects in progress
included in trade and other payables		810.6	920.2	–	–
Retentions on construction projects included in progress billings		633.9	627.7	–	–

1 Costs in Excess (CIE): Represents construction contracts where costs incurred to date on a project (together with foreseeable losses if applicable) exceed total progress billings issued to clients.

2 Billings in Excess (BIE): Represents construction contracts where the total progress billings issued to clients (together with foreseeable losses if applicable) on a project exceed the costs incurred to date plus recognised profit on the contract.

	Interest				Share of (Loss)/Profit After Tax Consolidated			Net Book Value	Consolidated
			June 2009		June 2008		June 2009		June 2008
	June 2009 %	June 2008 %	Associates A\$m	Joint Ventures A\$m	Associates A\$m	Joint Ventures A\$m	Associates A\$m	Joint Ventures A\$m	Associates A\$m	Joint Ventures A\$m
ments Accounted for Using the Method1 Equity 11. Invest
Retail
King of Prussia	50.0	50.0		(49.2)		20.5		427.0		421.7
Performance Retail Limited Partnership	33.3	33.3	(24.5)		(6.3)		48.2		80.1
CDR JV Ltd (313@Somerset, Singapore) Preston Tithebarn Unit Trust	25.0 50.0	25.0 50.0				1.3	56.2	38.9	43.6	33.1
Warrington Retail Limited Partnership	50.0	50.0		(70.1)		(22.6)		26.5		90.8
Other			0.1		0.1		7.2		6.6
			(24.4)	(119.3)	(6.2)	(0.8)	111.6	492.4	130.3	545.6
munities Com
Lend Lease Primelife Limited (LLP)2	43.2		4.3				196.8
Caroline Springs Joint Venture	50.0	50.0		12.5		15.1		23.7		23.9
Mawson Lakes Economic Development Project	50.0	50.0		6.0		10.7		7.5		14.0
Pyrmont Trust (Jacksons Landing)	50.0	50.0		3.4		(0.4)		14.5		18.9
Casey 2 Joint Venture (Spingbank Rise)	50.0							15.2
Greenwich Peninsula N0204 BKA Unit Trust	50.0	50.0		(27.6)3
Greenwich Peninsula N0204 BKB Unit Trust	50.0	50.0		(31.5)3
Other			(1.4)	6.4	(2.7)	9.9		24.2	1.4	35.5
			2.9	(30.8)	(2.7)	35.3	196.8	85.1	1.4	92.3
The security price of LLP as at 30 June 2009, as quoted on the Australian Securities Exchange, was 9.2 cents. This equates to a market value of A\$38.4 million for Lend Lease's 43.2% interest in LLP. The carrying value of Lend There have been reclassifications between associates and joint ventures in the period. Comparative information has also been reclassified. 1 2

Lease's interest of A\$196.8 million is considered recoverable on a value in use basis after considering the following: The valuation of LLP's net assets (as reflected in their financial report as at 30 June 2009) of 54.7 cents per security.

ii Reviewing the appropriateness of the methodology to determine the valuations adopted by LLP and the level of support through independent valuations.

iii In addition, Lend Lease carried out a separate valuation of LLP using the following principles: - Retirement villages: pre tax discount rate of 13.0% to 13.25%, growth rate of 3.75% to 4.0% per annum, average length of stay of six to 10 years.

• Aged care: the valuation of aged care was supported by recent transactions of the average price per bed licence.

3 Joint venture losses recognised during the year have been primarily applied as an impairment against loan stock interests held in these joint ventures. Refer Note 9. 'Loans and Receivables'.

	Interest				Share of (Loss)/Profit After Tax Consolidated			Net Book Value	Consolidated
			June 2009		June 2008	1	June 2009		June 2008	1
	June 2009 %	June 2008 %	Associates A\$m	Joint Ventures A\$m	Associates A\$m	Joint Ventures A\$m	Associates A\$m	Joint Ventures A\$m	Associates A\$m	Joint Ventures A\$m
ments Accounted for Using the Method continued Equity 11. Invest
Catalyst Healthcare (Manchester) Holdings Ltd Catalyst Healthcare (Romford) Holdings Ltd Public Private Partnerships2	50.0 50.0	50.0 50.0		2.1 4.1		2.3 3.5		7.8 12.6		5.9 8.4
Other			1.5	8.7	1.2	1.2	0.6		0.7	14.3
			1.5	14.9	1.2	7.0	0.6	20.4	0.7	28.6
Company No. 2 Limited Overgate Partnership Lend Lease Communities Fund 1 Investment Management Asia Pacific Investment Lend Lease Other	30.7 20.8 21.1	30.7 20.8 21.1	(45.8) (4.9) (0.5) (0.4)		(1.2) (0.1) 27.0 0.3		62.7 108.8 17.9 4.7		114.0 18.0 107.1 6.1
			(51.6)	–	26.0	–	194.1	–	245.2	–
Project Management and Construction Majadahonda Hospital Phoenix Constructors	25.0 15.0	25.0 15.0		3.2 6.0		4.2 1.7		17.5 10.9		14.8 4.2
Other			7.3	29.8	5.3	6.6	0.5	13.1	2.9	14.8
			7.3	39.0	5.3	12.5	0.5	41.5	2.9	33.8
Total			(64.3)	(96.2)	23.6	54.0	503.6	639.4	380.5	700.3
Less: Impairment							(18.1)	(65.5)	(5.4)	(16.8)
			(64.3)	(96.2)	23.6	54.0	485.5	573.9	375.1	683.5
Lend Lease provides service concession arrangements, originating through PPPs in the areas of healthcare, education, waste and government facilities. These arrangements provide facilities management and June 2008 has been adjusted to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements' (refer Note 1.29. 'Service Concession Arrangements'). 1 2

Annual Consolidated Financial Report 2009

Lend Lease Corporation

maintenance services for a fixed payment per annum (subject to inflationary increases per year) with terms generally 25 to 30 years. They also incorporate contractual obligations to make available the individual assets for their prescribed use and, when necessary, overhaul or replace major items of plant and equipment related to the assets, with payment obtained through periodic drawdowns from the relevant government

authorities.

			Consolidated
		June 2009			June 20081
		Joint			Joint
	Associates A\$m	Ventures A\$m	Total A\$m	Associates A\$m	Ventures A\$m	Total A\$m
11. Investments Accounted for Using the Equity Method continued
Lend Lease's Share of Results
Revenue	162.9	1,328.9	1,491.8	96.9	1,131.1	1,228.0
Fair value revaluations2	(90.5)	(68.8)	(159.3)	6.4	(31.1)	(24.7)
Expenses	(172.3)	(1,284.8)	(1,457.1)	(79.8)	(1,019.4)	(1,099.2)
(Loss)/profit before tax	(99.9)	(24.7)	(124.6)	23.5	80.6	104.1
Income tax (expense)/benefit3	0.5	(7.3)	(6.8)	0.1	(28.8)	(28.7)
(Loss)/profit after tax	(99.4)	(32.0)	(131.4)	23.6	51.8	75.4
Adjustment due to differences in accounting
policies4		(83.7)	(83.7)		(6.9)	(6.9)
Unrecognised share of losses		14.4	14.4		8.9	8.9
Fair value adjustments	35.6	(0.9)	34.7		(0.9)	(0.9)
Other	(0.5)	6.0	5.5		1.1	1.1
Share of (loss)/profit	(64.3)	(96.2)	(160.5)	23.6	54.0	77.6
Movements in Carrying Amounts
Carrying amount at beginning of financial year	375.1	683.5	1,058.6	427.5	699.0	1,126.5
Adjustment on adoption of AASB Interpretation 12					(6.7)	(6.7)
Investment acquired during financial year	202.8		202.8		34.0	34.0
Investment disposed of during financial year Contributions	(2.2) 9.2	26.4	(2.2) 35.6	5.0	(3.5) 14.6	(3.5) 19.6
Capital redemptions	(2.0)	(31.7)	(33.7)	(1.6)	(26.4)	(28.0)
Share of (loss)/profit	(64.3)	(96.2)	(160.5)	23.6	54.0	77.6
Distributions received	(23.2)	(68.5)	(91.7)	(26.2)	(40.7)	(66.9)
Net impairment provision raised	(12.2)	(55.0)	(67.2)		(3.0)	(3.0)
Other adjustments (including effect of foreign
exchange rate movements)5	2.3	115.4	117.7	(53.2)	(37.8)	(91.0)
Carrying amount at end of financial year	485.5	573.9	1,059.4	375.1	683.5	1,058.6

1 June 2008 has been adjusted to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements' (refer Note 1.29. 'Service Concession Arrangements').

2 Reflects investment property fair value revaluations. Associates: Lend Lease Overgate Partnership of A\$50.7 million loss

(June 2008: A\$6.8 million loss); Performance Retail Limited Partnership of A\$28.2 million loss (June 2008: A\$9.5 million loss); Asia Pacific

Investment Company 2 of A\$11.6 million loss (June 2008: A\$22.7 million gain). Joint Ventures: Warrington Retail Limited Partnership A\$68.8 million

loss (June 2008: A\$31.1 million loss). 3 Lend Lease's share of tax relating to the majority of investments accounted for using the equity method is reflected in the Lend Lease Group's current tax expense (refer to Note 6a. 'Income Tax Expense').

4 Primarily relates to adjustments to King of Prussia to align the investment property accounting policies with Australian Accounting Standards.

5 Primarily relates to foreign exchange movements of A\$98.0 million (June 2008: A\$105.5 million).

	Consolidated
		June 2009			June 20081
		Joint			Joint
	Associates A\$m	Ventures A\$m	Total A\$m	Associates A\$m	Ventures A\$m	Total A\$m
11. Investments Accounted for Using the Equity Method continued
Lend Lease's Share of Balance Sheet
Current assets	292.9	820.2	1,113.1	109.1	895.0	1,004.1
Non current assets	1,650.6	2,431.5	4,082.1	588.6	2,897.1	3,485.7
Total assets	1,943.5	3,251.7	5,195.2	697.7	3,792.1	4,489.8
Current borrowings	320.4	207.7	528.1	8.6	22.6	31.2
Current other liabilities	814.62	420.4	1,235.0	25.8	434.0	459.8
Non current borrowings	214.6	2,273.6	2,488.2	280.6	2,253.0	2,533.6
Non current other liabilities	56.4	365.0	421.4	3.6	891.5	895.1
Total liabilities	1,406.0	3,266.7	4,672.7	318.6	3,601.1	3,919.7
Net assets3	537.5	(15.0)	522.5	379.1	191.0	570.1
Other adjustments
Adjustment due to differences in accounting
policies4		416.4	416.4		414.6	414.6
Fair value adjustments on acquisition		1.6	1.6		2.5	2.5
Goodwill	4.4		4.4	4.5		4.5
Impairment	(18.1)	(65.5)	(83.6)	(5.4)	(16.8)	(22.2)
Unrecognised share of losses	1.2	105.0	106.2		28.6	28.6
Other	(39.5)	131.4	91.9	(3.1)	63.6	60.5
Net assets – adjusted using the equity method	485.5	573.9	1,059.4	375.1	683.5	1,058.6
Commitments
Share of capital expenditure and lease
commitments contracted but not provided for and
payable as follows:
Due within one year	6.3	1.4	7.7	6.7	0.6	7.3
Due between one and five years	26.1	6.7	32.8	8.3	4.2	12.5
Due later than five years	65.1		65.1

1 June 2008 has been adjusted to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements' (refer Note 1.29. 'Service Concession Arrangements').

2 Primarily relates to LLP liabilities due to retirement village residents which are classified as current under LLP's contractual arrangements. History shows that they are not expected to be paid within one year.

3 The carrying values of the Group's investments accounted for using the equity method have been assessed and where appropriate impairment taken against the respective carrying values, including assets that form part of the net investment, such as loan stock.

4 Primarily relates to adjustments to King of Prussia to align the investment property accounting policies with Australian Accounting Standards.

	Consolidated		Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
12. Investment Properties
Senior Living Properties	–	6.8	–	–
Retail Properties
Chelmsford Meadows Shopping Centre Clarence Dock, Leeds	109.6 27.3	169.2
Pakenham Place Shopping Centre	10.8	14.4
	147.7	183.6	–	–
Total investment properties	147.7	190.4	–	–
Reconciliations Reconciliations of the carrying amount for investment properties are set out below:
Carrying amount at beginning of financial year Additions Disposals Transfer from inventories	190.4 0.7 (6.8) 28.1	256.6 1.5
Fair value adjustments Impairment Effect of foreign exchange rate movement	(62.2) (0.3) (2.2)	(38.2) (29.5)
Carrying amount at end of financial year	147.7	190.4	–	–

The June 2009 retail property valuations are based on independent assessments. Refer to Note 1.8. 'Investment Properties' for the basis of valuation of investment properties.

When determining fair value, capitalisation rates used across the various retail and office assets were between 7.3% and 9.3% for UK properties (June 2008: 5.5% and 7.7%) and 8.0% on the Australian property (June 2008: 6.8%). These rates have been derived from market evidence.

		Consolidated	Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
Amounts Recognised in Income Statement for Investment Properties
Rental income	12.8	13.5
Direct operating expenses from properties	(4.8)	(2.8)
	8.0	10.7	–	–
Leases as Lessor The future minimum lease payments receivable from investment property tenants under non cancellable operating leases are as follows:
Less than one year Between one and five years Later than five years	10.6 39.3 39.1	10.1 33.8 39.8
	89.0	83.7	–	–

	Consolidated			Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
13. Other Financial Assets
Current
a. Measured at Fair Value
Available for Sale
Lend Lease Global Properties, SICAF	2.8	15.5
Lend Lease Primelife Limited (formerly Babcock & Brown Communities Group)		17.3		17.3
Other	12.3	14.7	1.4	1.2
	15.1	47.5	1.4	18.5
Fair Value Through Profit or Loss – Designated at Initial Recognition
Negotiable instruments	70.8	23.1	–	–
Derivatives
Derivative contracts held for trading	1.3	8.7	–	–
b. Measured at Amortised Cost
Held to Maturity
Negotiable instruments	–	5.4	–	–
Total current	87.2	84.7	1.4	18.5
Non Current
a. Measured at Fair Value
Available for Sale
Australian Prime Property Fund	199.0	207.5
Lend Lease Core Plus Fund Lend Lease Retail Partnership	45.2 43.5	38.2 62.7
Other	84.3	71.6
	372.0	380.0	–	–
Fair Value Through Profit or Loss – Designated at Initial Recognition
Unlisted equity investments	12.4	7.0
Negotiable instruments		4.4
	12.4	11.4	–	–
b. Investments Held at Cost
Shares in consolidated entities Less: Impairment1			2,047.5 (682.5)	2,041.4 (656.7)
	–	–	1,365.0	1,384.7
Total non current Total other financial assets	384.4 471.6	391.4 476.1	1,365.0 1,366.4	1,384.7 1,403.2

1 The carrying values of the Company's investments in consolidated entities and intercompany receivables have been reviewed for indicators of impairment and impairment recognised where appropriate.

	Consolidated		Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
14. Property, Plant and Equipment
Land	27.4	27.2
Accumulated impairment	(7.2)
	20.2	27.2	–	–
Buildings and leasehold improvements at cost	100.4	83.9
Accumulated depreciation	(34.3)	(25.6)
	66.1	58.3	–	–
Plant and equipment at cost	149.0	137.1	0.4	0.4
Accumulated depreciation and impairment	(105.2)	(79.3)	(0.2)	(0.2)
	43.8	57.8	0.2	0.2
Assets under construction	3.5	1.9
Accumulated impairment	(3.5)
	–	1.9	–	–
Total property, plant and equipment	130.1	145.2	0.2	0.2
Reconciliations Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below:
Land
Carrying amount at beginning of financial year1	27.2	9.8
Additions	0.3	18.2
Impairment Effect of foreign exchange rate movements/other	(7.2) (0.1)	(0.8)
Carrying amount at end of financial year	20.2	27.2	–	–
Buildings and Leasehold Improvements Carrying amount at beginning of financial year2	58.3	55.5
Additions	11.1	10.2
Disposals	(0.4)	(0.1)
Disposals of consolidated entities	(1.6)
Depreciation Effect of foreign exchange rate movements/other	(6.3) 5.0	(5.6) (1.7)
Carrying amount at end of financial year	66.1	58.3	–	–
Plant and Equipment
Carrying amount at beginning of financial year3	57.8	51.5	0.2	0.2
Additions	22.9	28.6	0.1	0.1
Disposals	(1.0)	(1.2)
Disposals of consolidated entities Depreciation	(2.2) (18.7)	(18.4)	(0.1)	(0.1)
Impairment	(9.6)	(0.4)
Effect of foreign exchange rate movements/other	(5.4)	(2.3)
Carrying amount at end of financial year	43.8	57.8	0.2	0.2
Assets in the Course of Construction
Carrying amount at beginning of financial year	1.9
Additions	1.7	1.2
Impairment Effect of foreign exchange rate movements/other	(3.5) (0.1)	0.7
Carrying amount at end of financial year	–	1.9	–	–
Total carrying amount	130.1	145.2	0.2	0.2

1 The carrying amount at 1 July 2007 of A\$9.8 million represents costs only.

2 The carrying amount at 1 July 2007 of A\$55.5 million represents A\$81.5 million of costs and A\$26.0 million of accumulated depreciation.

3 The carrying amount at 1 July 2007 of A\$51.5 million represents A\$135.2 million of costs and A\$83.7 million of accumulated depreciation.

		Consolidated		Company
	Note	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
15. Intangible Assets
Goodwill	15a	477.1	683.4
Management agreements	15b	28.9	31.4
Other intangibles	15c	20.0	15.3
Total intangible assets		526.0	730.1	–	–
a. Goodwill
Bovis Lend Lease Group		477.1	449.4
Crosby Lend Lease Group		172.4	153.5
Delfin Lend Lease Group		64.7	64.7
Lend Lease Development Group		15.8	15.8
		730.0	683.4	–	–
Accumulated impairment	5	(252.9)	–	–	–
Total goodwill		477.1	683.4	–	–
Reconciliations
Reconciliations of the carrying amounts for each category of goodwill
are set out below:
Bovis Lend Lease Group
Carrying amount at beginning of financial year		449.4	506.7
Effect of foreign exchange rate movements		27.7	(57.3)
Carrying amount at end of financial year		477.1	449.4	–	–
Crosby Lend Lease Group
Carrying amount at beginning of financial year		153.5	177.5
Impairment		(172.4)
Effect of foreign exchange rate movements		18.9	(24.0)
Carrying amount at end of financial year		–	153.5	–	–
Delfin Lend Lease Group
Carrying amount at beginning of financial year		64.7	64.7
Impairment		(64.7)
Carrying amount at end of financial year		–	64.7	–	–
Lend Lease Development Group
Carrying amount at beginning of financial year		15.8	15.8
Impairment		(15.8)
Carrying amount at end of financial year		–	15.8	–	–
Total goodwill		477.1	683.4	–	–

Impairment

During the period, the Group assessed the recoverable amount of goodwill and determined that the carrying amount of goodwill allocated to the Group's Europe and Asia Pacific Communities Cash Generating Units (CGUs), which comprise operations of the Communities segment (refer to Note 29. 'Segment Reporting'), were fully impaired (A\$252.9 million). The impairment loss is included in 'other expenses' in Communities activities in the income statement.

The main contributing factor to the impairment of the CGUs was the significant deterioration of the residential property market in the UK and Australia which has impacted projects in the Lend Lease Development and Delfin Lend Lease businesses and caused further deterioration within the Crosby Lend Lease business.

No impairment arose as a result of the review of goodwill for the Project Management and Construction CGUs which relate to the Bovis Lend Lease Group for the year ended 30 June 2009. Based on information available and market conditions at 30 June 2009, a reasonably foreseeable change in the assumptions made in this assessment would not result in impairment of Bovis Lend Lease Group's goodwill.

15. Intangible Assets continued

a. Goodwill continued

Goodwill Allocation

Goodwill is allocated to the Group's CGUs identified according to region and business segment. A summary of the goodwill allocation to CGUs is set out below.

June 2009	Asia Pacific A\$m	Americas A\$m	Europe A\$m	Total A\$m
Project Management and Construction	27.4	173.7	276.0	477.1
June 2008
Project Management and Construction Communities	27.4 80.5	148.1	273.9 153.5	449.4 234.0
	107.9	148.1	427.4	683.4

Impairment Tests and Key Assumptions Used

The recoverable amount of a CGU is determined based on Value In Use (VIU) calculations. For the Project Management and Construction CGUs, the assumptions used for determining the recoverable amount of each CGU are based on past experience and expectations for the future, utilising both internal and external sources of data and relevant industry trends. The following describes the key assumptions on which management has based its cash flow projections when determining VIU relating to the Project Management and Construction CGUs:

Cash Flows

The VIU calculations use post tax cash flow projections based on actual operating results and financial budgets and forecasts covering a five year period. The financial budgets and forecasts are approved by management. These budgets and forecasts are based on management estimates to determine income, expenses, capital expenditure and cash flows for each CGU.

Growth Rate

The terminal value growth rate used to extrapolate the cash flows beyond the five year period is 3.0% (2008: 3.0%). The growth rate reflects the forecast long term average growth rate for each CGU and the countries in which they operate.

Discount Rate

The discount rate applied to the cash flow projections is between 11.0% and 13.0% (2008: between 10.0% and 12.0%). The Group's weighted average cost of capital is used as a start point for determining the discount rate, with appropriate adjustments for the risk profile relating to the relevant CGUs and the countries in which they operate. The discount rates used are post tax.

	Consolidated		Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
b. Management Agreements
Management agreements	46.9	45.4
Accumulated amortisation	(18.0)	(14.0)
Total management agreements	28.9	31.4	–	–
Reconciliation Reconciliation of the carrying amounts of management agreements are set out below:
Carrying amount at beginning of financial year1 Additions Disposals Amortisation Other	31.4 17.5 (16.0) (4.0)	18.3 12.7 (2.9) 3.3
Carrying amount at end of financial year	28.9	31.4	–	–

1 The carrying amount at 1 July 2007 of A\$18.3 million represents A\$29.4 million of costs and A\$11.1 million of accumulated amortisation.

	Consolidated		Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
15. Intangible Assets continued
c. Other Intangibles
Other intangibles	30.4	19.8
Accumulated amortisation and impairment	(10.4)	(4.5)
Total other intangibles	20.0	15.3	–	–
Reconciliation Reconciliation of the carrying amounts of other intangibles are set out below:
Carrying amount at beginning of financial year1 Additions	15.3 9.8	5.1 12.7
Amortisation	(5.0)	(2.2)
Impairment	(0.6)
Effect of foreign exchange rate movements	0.5	(0.3)
Carrying amount at end of financial year	20.0	15.3	–	–
16. Defined Benefit Plan Asset2
a. Balance Sheet Amounts The amounts recognised in the balance sheet are determined as follows:
Fair value of plan assets	128.5	156.3	128.5	156.3
Present value of defined benefit obligations	(133.4)	(126.4)	(133.4)	(126.4)
Unrecognised actuarial loss/(gain) Unrecognised past service cost	34.9	(1.4) 0.2	34.9	(1.4) 0.2
Recognised asset for defined benefit obligations	30.0	28.7	30.0	28.7
b. Reconciliation of the Fair Value of Plan Assets
Fair value of plan assets at beginning of financial year	156.3	167.3	156.3	167.3
Expected return on plan assets	8.2	9.0	8.2	9.0
Actuarial (losses)/gains	(32.9)	(19.2)	(32.9)	(19.2)
Contributions by Group companies Contributions by plan participants	6.2 3.2	6.4 3.4	6.2 3.2	6.4 3.4
Taxes and premiums paid	(1.5)	(1.5)	(1.5)	(1.5)
Transfers in	0.1	0.9	0.1	0.9
Contributions to accumulation fund	(1.0)	(0.9)	(1.0)	(0.9)
Benefits paid Fair value of plan assets at end of financial year	(10.1) 128.5	(9.1) 156.3	(10.1) 128.5	(9.1) 156.3
c. Reconciliation of the Present Value of Funded Obligations
Present value of funded obligations at beginning of financial year	126.4	116.1	126.4	116.1
Current service cost	6.3	5.8	6.3	5.8
Interest cost on benefit obligation	6.7	6.0	6.7	6.0
Contributions by plan participants	3.2	3.4	3.2	3.4
Actuarial losses Taxes and premiums paid	3.3 (1.5)	5.7 (1.5)	3.3 (1.5)	5.7 (1.5)
Transfers in	0.1	0.9	0.1	0.9
Contributions to accumulation fund	(1.0)	(0.9)	(1.0)	(0.9)
Benefits paid	(10.1)	(9.1)	(10.1)	(9.1)
Present value of funded obligations at end of financial year	133.4	126.4	133.4	126.4

1 The carrying amount at 1 July 2007 of A\$5.1 million represents A\$8.0 million of costs and A\$2.9 million of accumulated amortisation.

2 Relates to the Lend Lease Superannuation Fund (Australia).

	Consolidated		Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
16. Defined Benefit Plan Asset continued
d. Expense Recognised in the Income Statement
Current service cost	6.3	5.8	6.3	5.8
Interest on obligation	6.7	6.0	6.7	6.0
Expected return on plan assets	(8.2)	(9.0)	(8.2)	(9.0)
Actuarial gain recognised		(2.4)		(2.4)
Past service cost	0.2	0.4	0.2	0.4
Net defined benefit plan expense	5.0	0.8	5.0	0.8
e. Actual Return on Plan Assets	(24.7)	(10.2)	(24.7)	(10.2)

	Consolidated		Company
	June 2009 %	June 2008 %	June 2009 %	June 2008 %
f. Categories of Plan Assets
Cash	8.0	5.0	8.0	5.0
Equity instruments1	48.0	51.0	48.0	51.0
Fixed interest securities	40.0	40.0	40.0	40.0
Property	4.0	4.0	4.0	4.0
	100.0	100.0	100.0	100.0
g. Principal Actuarial Assumptions
Discount rate (net)	4.7	5.9	4.7	5.9
Expected rate of return on assets2	5.9	5.8	5.9	5.8
Expected salary increase rate	4.0	4.0	4.0	4.0

h. Employer Contributions

For the year ending 30 June 2010, total employer contributions to the plan are expected to be A\$6.8 million.

Lend Lease Corporation paid A\$1.0 million in insurance premiums on behalf of the Lend Lease Superannuation Fund (Australia) for the year ending 30 June 2010.

	Consolidated
	June 2009 A\$m	June 2008 A\$m	June 2007 A\$m	June 2006 A\$m	June 2005 A\$m
i. Historical Summary
Plan assets	128.5	156.3	167.3	147.4	139.8
Defined benefit plan obligation	(133.4)	(126.4)	(116.1)	(110.8)	(111.3)
(Deficit)/Surplus	(4.9)	29.9	51.2	36.6	28.5
Experience (losses)/gains arising on plan assets	(32.9)	(19.2)	17.2	9.4	11.3
Experience gains/(losses) arising on plan liabilities	3.0	(8.3)	(6.8)	(4.4)	0.1

1 The fair value of plan assets includes Lend Lease shares to the value of A\$0.1 million (June 2008: A\$0.2 million).

2 The expected return on assets assumption is determined by weighting the expected long term return for each asset class by the target allocation of assets to each asset class. In addition, correlations of the investment returns between asset classes are allowed. The returns used for each asset class are net of investment tax and investment fees. An allowance for administration expenses has been deducted from the expected return.

	Consolidated		Company
Note	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
17. Other Assets
Current
Prepayments	35.1	27.3	1.0
Deferred bid costs on projects at preferred bidder status	30.0	13.1
Other	2.7	2.8
	67.8	43.2	1.0	–
Non Current
Prepayments	30.5	11.0
Other	0.1	0.8
	30.6	11.8	–	–
Total other assets	98.4	55.0	1.0	–
18. Trade and Other Payables
Current – Measured at Cost or Amortised Cost
Trade creditors	2,270.2	2,266.5	41.3	43.5
Construction revenue – amounts due to customers1 10b	1,356.9	1,157.3
Deposits received in advance Unearned income	9.0 49.0	7.2 38.0
Unearned premium reserve2	17.4
Insurance claim reserve2	5.3	8.4
Related party
Consolidated entities3 Associates and joint venture entities	26.7	29.2	1,830.7	1,485.6
Deferred land payments	24.8	93.2
Other	37.9	77.6	11.0	8.1
	3,797.2	3,677.4	1,883.0	1,537.2
Non Current – Measured at Amortised Cost
Insurance claim reserve2	37.0	13.4
Unearned income	0.6	1.0
Related party
Associates and joint venture entities	19.6	26.1
Deferred land payments Other	35.1 128.5	11.2 118.4
	220.8	170.1	–	–
Total trade and other payables	4,018.0	3,847.5	1,883.0	1,537.2

1 Represents construction contracts where the total progress billings issued to clients (together with foreseeable losses if applicable) on a project exceed the costs incurred to date plus recognised profit on the contract.

2 Unearned premium and insurance claim reserves relate to Lend Lease's wholly owned special purpose captive insurance subsidiary. The 'cost' of the liability for outstanding claims (insurance claim reserves) is measured as the current estimate of the present value of expected future payments against claims incurred at the reporting date under insurance contracts issued by the special purpose captive insurance subsidiary. These expected future payments are discounted using a risk free rate.

3 Related party payables include working capital balances with controlled entities and reflect the funding of general working capital items. All working capital balances are non interest bearing and repayable on demand.

		Consolidated	Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
19. Borrowings and Financing Arrangements
a. Borrowings – Measured at Amortised Cost
Non Current
Commercial notes Bank credit facilities	971.9 153.1	929.3
Total borrowings	1,125.0	929.3	–	–
b. Finance Facilities Lend Lease operating businesses have access to the following lines of credit:
Commercial Notes
Facility available Amount of facility used	971.9 (971.9)	929.3 (929.3)
Amount of facility unused	–	–	–	–
Bank Credit Facilities Facility available Amount of facility used	755.1 (153.1)	788.6
Amount of facility unused	602.0	788.6	–	–
Bank Overdrafts Facility available Amount of facility used	10.0	20.0	10.0	20.0
Amount of facility unused	10.0	20.0	10.0	20.0

Commercial notes include £300.0 million 6.125% annual coupon guaranteed notes due 12 October 2021 that were issued in October 2006 in the UK public bond market and US\$300.0 million of guaranteed senior notes at 5.75% (all in rate) issued in the US Private Placement debt market maturing in October of 2012, 2015 and 2017.

Bank credit facilities include a committed syndicated bank facility maturing in November 2010 of £350.0 million (A\$714.3 million) in the UK, of which £75.0 million (A\$153.1 million) was drawn at 30 June 2009 (June 2008: £nil).

The bank overdraft facilities may be drawn at any time and are repayable on demand.

Lend Lease has a A\$500.0 million Australian Commercial Paper program and a A\$1,500.0 million Multi Issuer Debt program. The amount drawn under these facilities was A\$nil and the availability of these facilities is subject to market conditions.

Consistent with prior years, the Group has not defaulted on any obligations of principal or interest in relation to its borrowing and financing arrangements.

Refer to Note 31d. for analysis of the management of the Group's liquidity risk.

The following schedule profiles the 30 June 2009 borrowings by currency and interest exposure:

	Interest Exposure				Currency
	Fixed A\$m	Floating A\$m	Total A\$m	US\$ A\$m	£ A\$m	Total A\$m
June 2009
Less than one year Between one and five years More than five years	123.1 848.8	153.1	276.2 848.8	123.1 246.1	153.1 602.7	276.2 848.8
Total	971.9	153.1	1,125.0	369.2	755.8	1,125.0
June 2008
Less than one year Between one and five years More than five years	104.9 824.4		104.9 824.4	104.9 209.7	614.7	104.9 824.4
Total	929.3	–	929.3	314.6	614.7	929.3

		Consolidated	Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
20. Provisions
Current
Employee benefits	97.3	100.4	2.5	3.8
Maintenance and warranty1	28.7	41.6
Restructure (including employee terminations) Other2	55.2 46.0	3.2 38.6	36.6	39.5
	227.2	183.8	39.1	43.3
Non Current
Employee benefits	11.0	9.9	0.6	0.7
Other2	39.0	35.4
	50.0	45.3	0.6	0.7
Total provisions	277.2	229.1	39.7	44.0
Reconciliations
Reconciliations of the carrying amounts of each
class of provision, except for employee benefits, are set out below:
Current
Maintenance and Warranty Carrying amounts at beginning of financial year	41.6	63.3
Provisions written back during financial year	(6.3)	(19.0)
Payments made during financial year	(8.6)	(3.8)
Other Effect of foreign exchange rate movements	(1.9) 3.9	7.8 (6.7)
Carrying amount at end of financial year	28.7	41.6	–	–
Restructure (Including Employee Terminations)
Carrying amounts at beginning of financial year	3.2	9.1
Provisions raised/(written back)	91.0	(3.3)
Payments made during financial year	(36.1)	(2.2)
Other Effect of foreign exchange rate movements	(2.9)	0.2 (0.6)
Carrying amount at end of financial year	55.2	3.2	–	–
Other
Carrying amounts at beginning of financial year	38.6	69.9	39.5	41.9
Provisions raised/(written back) during financial year Payments made during financial year	15.8 (11.1)	(9.3) (15.7)	2.7 (5.6)	13.2 (13.3)
Other	2.0	(3.3)
Effect of foreign exchange rate movements	0.7	(3.0)		(2.3)
Carrying amount at end of financial year	46.0	38.6	36.6	39.5
Non Current
Other
Carrying amounts at beginning of financial year Provisions raised during financial year	35.4 5.4	4.3 30.9
Payments made during financial year	(11.6)	(1.9)
Other	10.0	4.9
Effect of foreign exchange rate movements Carrying amount at end of financial year	(0.2) 39.0	(2.8) 35.4	–	–

1 Represents maintenance and warranty provisions to cover specific or estimated claims that arise due to defects or legal disputes in relation to completed projects. The timing of the utilisation of these provisions varies across each completed project.

2 Primarily represents future obligations on various legal provisions and funding received for PPP service concession arrangements. The timing of the utilisation of these provisions is dependent on litigation outcomes and service requests received by Lend Lease.

		Consolidated	Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
21. Other Financial Liabilities
Current
a. Measured at Fair Value
Derivatives Forward foreign exchange contracts – held for trading Related party	29.8	0.1
Consolidated entities – financial guarantees			9.2	9.3
Total current	29.8	0.1	9.2	9.3
Non Current
a. Measured at Fair Value Related party
Consolidated entities – financial guarantees	–	–	42.5	51.1
b. Measured at Amortised Cost
Bluewater lease liability Other	167.6 24.0	171.1 29.7
Total non current	191.6	200.8	42.5	51.1
Total other financial liabilities	221.4	200.9	51.7	60.4

Consistent with the prior year, the Group did not default on any obligations of principal or interest in relation to its other financial liabilities during the period.

Refer to Note 31d. for analysis of the management of the Group's liquidity risk.

June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
0.2	0.3	–	–
0.6	0.8
0.6	0.8	–	–
0.8	1.1	–	–
	0.2	Consolidated 0.3	Company

		Consolidated	Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
23. Defined Benefit Plan Liability1
a. Balance Sheet Amounts
The amounts recognised in the balance sheet are determined as follows:
Present value of defined benefit obligations Fair value of plan assets Unrecognised actuarial (losses)/gains	691.2 (559.2) (86.3)	686.2 (627.7) 59.6
Recognised liability for defined benefit obligations	45.7	118.1	–	–
b. Reconciliation of the Present Value of Defined Benefit Obligations Present value of defined benefit obligations at beginning of financial year Current service cost Interest cost on benefit obligation Contributions by plan participants	686.2 21.7 43.2 0.4	778.3 33.1 39.8 0.4
Actuarial losses/(gains) Benefits paid Curtailments Effect of foreign exchange rate movements	34.4 (27.4) (54.4) (12.9)	(40.2) (18.9) (106.3)
Present value of defined benefit obligations at end of financial year	691.2	686.2	–	–
c. Reconciliation of the Fair Value of Plan Assets Fair value of plan assets at beginning of financial year Expected return on plan assets Actuarial losses Contributions by Group companies Contributions by plan participants Benefits paid Effect of foreign exchange rate movements	627.7 40.0 (115.5) 44.9 0.4 (27.4) (10.9)	661.0 44.4 (12.7) 46.7 0.4 (18.9) (93.2)
Fair value of plan assets at end of financial year	559.2	627.7	–	–
d. Expense Recognised in the Income Statement Current service cost Interest on obligation Expected return on plan assets Curtailment gain2 Net defined benefit plan (income)/expense	21.7 43.2 (40.0) (55.3) (30.4)	33.1 39.8 (44.4) 28.5	–	–
e. Actual Return on Plan Assets	(69.1)	31.8	–	–
	June 2009 %	Consolidated June 2008 %	Company June 2009 %	June 2008 %
f. Categories of Plan Assets Equity instruments Debt instruments Other assets	32.4 54.9 12.7	56.0 42.0 2.0
	100.0	100.0	–	–

1 Relates to the Bovis UK Pension Scheme.

2 The closure of the Bovis UK Pension Scheme to future accrual, effective 31 August 2008, has contributed to a decrease in the plan's defined benefit obligation as the plan is no longer exposed to future service salary increases. The curtailment of the plan has resulted in a curtailment gain to the income statement of A\$55.3 million before tax.

	Consolidated		Company
	June 2009 %	June 2008 %	June 2009 %	June 2008 %
23. Defined Benefit Plan Liability continued
g. Principal Actuarial Assumptions
Discount rate (net)	6.1	6.3
Expected rate of return on assets1	6.1	7.0
Expected salary increase rate2		5.3
Pension increases (3.0% cap)	2.6	2.9
Pension increases (5.0% cap)	3.5	3.8
Pension increases (2.5% cap)	2.3	2.9

1 The expected return on assets assumption is determined by weighting the expected long term return for each asset class by the target allocation of assets to each asset class and allowing for the correlations of the investment returns between asset classes. The returns used for each asset class are net of the Pension Protection Fund levy payable for the 2009 financial year. An allowance for administration expenses has been deducted from the expected return.

2 The plan is no longer exposed to future service salary increases as it is closed to future accrual effective 31 August 2008.

h. Employer Contributions

Additional deficit contributions are expected to be paid, however, this has not yet been agreed with the plan's trustee. Further employer contributions may be paid if there are any redundancies or augmentations during the year.

June 2009 A\$m	June 2008 A\$m	June 2007 A\$m	June 2006 A\$m	June 2005 A\$m
				454.2
(691.2)	(686.2)	(778.3)	(722.4)	(640.2)
(132.0)	(58.5)	(117.3)	(150.2)	(186.0)
(115.5)	(12.7)	18.5	36.8	32.3
(27.4)	(0.9)	(7.1)	(21.1)	(23.9)
	559.2	627.7	Consolidated 661.0	572.2

		Consolidated				Company
		June 2009		June 2008		June 2009		June 2008
	No. of Shares m	A\$m	No. of Shares m	A\$m	No. of Shares m	A\$m	No. of Shares m	A\$m
24. Issued Capital and Treasury Shares
Issued Capital – Ordinary Shares Fully Paid
Ordinary shares issued at beginning of financial year	401.1	854.7	401.1	854.4	401.1	854.7	401.1	854.4
Movements during financial year Share issue via institutional placement, net of
transaction costs Share issue – other	50.0 0.1	296.2 0.2		0.3	50.0 0.1	296.2 0.2		0.3
Dividend Reinvestment Plan (DRP) Ordinary shares issued at end of financial year	6.4	44.8 457.6 1,195.9	401.1	854.7	6.4	44.8 457.6 1,195.9	401.1	854.7

On 11 February 2009 Lend Lease issued 50 million new shares via an institutional placement at an issue price of A\$6.05 per share.

The Company's DRP was reactivated in August 2008. The Company's Share Election Plan and Share Purchase Plan remain suspended.

Holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at shareholders' meetings. Ordinary shareholders rank after all creditors in repayment of capital.

Lend Lease does not have authorised capital or par value in respect of its issued shares.

			Consolidated			Company
	June 2009		June 2008		June 2009		June 2008
	No. of Shares		No. of Shares		No. of Shares		No. of Shares
	m	A\$m	m	A\$m	m	A\$m	m	A\$m
Treasury Shares1
Treasury shares at beginning of financial year	30.1	62.6	30.5	67.4	30.1	87.6	30.5	92.5
Movements during financial year
Treasury shares acquired	2.1	14.8	0.1	1.6	2.1	14.8	0.1	1.5
Treasury shares vested	(1.4)	(14.2)	(0.5)	(6.4)	(1.4)	(14.2)	(0.5)	(6.4)
Treasury shares at end of financial year	30.8	63.2	30.1	62.6	30.8	88.2	30.1	87.6

1 Represents unallocated Lend Lease shares held by employee benefit vehicles, including employee share plans, which Lend Lease sponsors. The value reflects the original historical cost to the Lend Lease Group. The value of the treasury shares for the Company is different to the value of the treasury shares for the Lend Lease Group due to the elimination of the profit impact of transactions between consolidated employee benefit vehicles.

25. Reserves

Nature and Purpose of Reserves

a. Fair Value Revaluation Reserve

Unrealised gains or losses arising from changes in the fair value and foreign exchange rate differences on translation of non monetary securities classified as available for sale are recognised in the fair value revaluation reserve. Amounts are recognised in the income statement when the associated securities are sold, redeemed or impaired.

b. Hedging Reserve

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments relating to hedged transactions that have not occurred.

c. Foreign Currency Translation Reserve

The foreign currency translation reserve records the foreign currency differences net of income tax arising from the translation of foreign operations, the translation of transactions that hedge the Company's net investment in a foreign operation or the translation of foreign currency monetary items forming part of the net investment in a foreign operation.

d. Equity Compensation Reserve

The fair value of equity settled share based compensation is recognised in the income statement and the equity compensation reserve over the vesting period of the underlying grant. Additionally, unallocated Lend Lease shares held by consolidated employee benefit vehicles which are used to meet equity related employee arrangements are recognised in the equity compensation reserve at their original historic cost to the Group.

e. Other Compensation Reserve

Unallocated Lend Lease shares held by consolidated employee benefit vehicles that are used to cash settle certain share based payment arrangements are recognised in the other compensation reserve at their original historic cost to the Group. On allocation, the shares are revalued to their current market value against the income statement. Following the distribution of the proceeds to the beneficiary, the difference between the original cost of the shares and the market value is recognised in retained earnings as a 'gain/(loss) on utilisation of treasury shares'.

f. Capital Reserve

The capital reserve comprises realised capital profits on the disposal of assets which did not attract capital gains tax.

g. Minority Interest Acquisition Reserve

The minority interest acquisition reserve arises from additional acquisition of minority interests, subsequent to obtaining control of the entity. The reserve represents the premium on the cost of acquisition over the fair value of the Group's share of the net identifiable assets of the acquired entity.

	Consolidated		Company
	June 2009 A\$m	June 20081 A\$m	June 2009 A\$m	June 2008 A\$m
26. Retained Earnings
Retained earnings at beginning of financial year Adjustment on adoption of AASB Interpretation 12 'Service	2,126.1	2,257.4	2,014.5	1,684.8
Concession Arrangements'		(68.2)
Adjusted retained earnings at beginning of financial year (Loss)/profit attributable to members of Lend Lease	2,126.1	2,189.2	2,014.5	1,684.8
Corporation Limited (Loss)/gain on utilisation of treasury shares recognised	(653.6)	254.2	(36.0)	669.4
directly in retained earnings2	(0.9)	1.8		1.3
Other		(3.6)
	1,471.6	2,441.6	1,978.5	2,355.5
Dividends paid	(205.1)	(341.0)	(205.1)	(341.0)
Dividends on treasury shares	16.8	25.5
Dividends forgone pursuant to DRP	(44.8)		(44.8)
Total retained earnings at end of financial year	1,238.5	2,126.1	1,728.6	2,014.5

1 June 2008 has been adjusted to reflect the impact of adopting for the first time AASB Interpretation 12 'Service Concession Arrangements' (refer to Note 1.29. 'Service Concession Arrangements').

2 Difference between the cost of the treasury shares to the Group and the fair value expensed to the income statement on settlement.

27. Contingent Liabilities

Lend Lease has the following contingent liabilities:

There are a number of legal claims and exposures which arise from the normal course of business. There is significant uncertainty as to whether a future liability will arise in respect of these items. The amount of liability, if any, which may arise cannot be measured reliably at this time. The Directors are of the opinion that all known liabilities have been brought to account and that adequate provision has been made for any anticipated losses.

In certain circumstances, Lend Lease guarantees the performance of particular Group entities in respect of their obligations. This includes bonding and bank guarantee facilities used primarily by the Project Management and Construction business as well as performance guarantees for certain Communities business commercial built-form developments. These guarantees are provided in respect of activities that occur in the ordinary course of business and any known losses in respect of the relevant contracts have been brought to account.

Certain contingent liabilities exist in relation to the Lend Lease Retirement Benefit Fund and the Lend Lease Employee Investment Trust (EIT). This is disclosed in detail in Note 34b. 'Lend Lease Employee Benefit Vehicles'.

In September 2004, a class action was filed against a number of parties who responded to the World Trade Center emergency and debris removal following the events of 9/11. The action was brought against more than 50 defendants, including the City of New York and Bovis Lend Lease LMB Inc ('Bovis Lend Lease') (a subsidiary of Lend Lease). Judge Alvin K Hellerstein of the United States Federal Court for the Southern District of New York refused to certify the class action and as such the litigation proceeds as a consolidated action by individual claimants. The number of claimants who have brought proceedings against Bovis Lend Lease is currently approximately 15,699 (comprising 9,595 first named claimants and 6,104 derivative claimants – for example, spouses).

On 12 December 2008 Judge Hellerstein made orders that will bring 30 expedited cases to trial with an anticipated hearing date of May 2010. These cases will include cases selected by the parties, as well as by the Court. Preparation for these trials through discovery is progressing.

Bovis Lend Lease is one of the beneficiaries of the approximately US\$1.0 billion captive insurance policy established by the US Congress to protect the City of New York and its contractors against liabilities that may arise from the clean up. Bovis Lend Lease also has other project specific insurance.

In addition, to establish any liability on the part of Bovis Lend Lease, the claimants must prove that Bovis Lend Lease owed them a duty of care, breached that duty and that their injuries were caused by the conduct of Bovis Lend Lease. The litigation therefore still needs to proceed through a number of stages before any liability can attach to Bovis Lend Lease. As with all litigation, to the extent that the claimants are able to establish liability against Bovis Lend Lease, it is not possible at this stage to quantify what that liability may or may not be or whether or not that liability will be entirely covered by insurance.

In June 2009, Bovis Lend Lease LMB, Inc. in New York, received notice of investigations being conducted by the US Attorney and New York District Attorney. The investigation relates to allegations regarding, among other things, billing practices for union foremen on construction projects in New York. Bovis Lend Lease is co-operating with the authorities in their investigation.

Bovis Lend Lease has engaged independent advisors to conduct a review of Bovis Lend Lease LMB, Inc.'s practices. Until the investigation is complete, it is not possible to quantify what the financial consequences associated with this matter will be, however, Lend Lease has recognised a provision to cover legal costs and make-good payments.

	Country of Incorporation	Foreign Country of Business Operation	Year End 30 June 2009 Ownership Interest %	Year End 30 June 2008 Ownership Interest %
28. Consolidated Entities
a. Investments in Consolidated Entities The material consolidated entities of the Group are:
Parent Entity Lend Lease Corporation Limited	Australia
Project Management, Construction Australia
Bovis Lend Lease Pty Limited	Australia		100	100
International
Bovis Lend Lease Holdings Limited Bovis Lend Lease International Limited	UK UK	UK Malta	100 100	100 100
Bovis Lend Lease Limited	UK	UK	100	100
Bovis Lend Lease Overseas Holdings Limited	UK	UK	100	100
Bovis Lend Lease Holdings, Inc.	USA	USA	100	100
Bovis Lend Lease, Inc. Bovis Lend Lease LMB, Inc.	USA USA	USA USA	100 100	100 100
ML Bovis Holdings Limited	USA	USA	100	100
Public Private Partnerships
International
Actus Lend Lease, LLC	USA	USA	100	100
Catalyst Lend Lease Ltd	UK	UK	100	100
Retail
International Blueco Limited	UK	UK	100	100
Lend Lease Europe Holdings Limited	UK	UK	100	100
Lend Lease Europe Limited	UK	UK	100	100
Yarmouth Lend Lease King of Prussia, Inc.	USA	USA	100	100
Communities Australia
Delfin Lend Lease Limited	Australia		100	100
Lend Lease Development Pty Limited	Australia		100	100
International
Crosby Lend Lease Group Limited The Beaufort Homes Development Group Limited	UK UK	UK UK	100 100	100 100
The Crosby Group plc	UK	UK	100	100
Lend Lease Americas, Inc. (formerly Lend Lease Retail
and Communities Inc.)	USA	USA	100	100
Investment Management
Australia Lend Lease Real Estate Investments Limited	Australia		100	100
Lend Lease Securities and Investment Pty Limited	Australia		100	100
International
Lend Lease Investment Management Lend Lease (US) Holdings, Inc.	Singapore USA	Singapore USA	100 100	100 100
Lend Lease (US), Inc.	USA	USA	100	100
Lend Lease (US) Services, Inc.	USA	USA	100	100

		Country of Incorporation	Foreign Country of Business Operation	Year End 30 June 2009 Ownership Interest %	Year End 30 June 2008 Ownership Interest %
28.	Consolidated Entities continued
	a. Investments in Consolidated Entities continued
	Group Services Australia
	Lend Lease Finance Limited	Australia		100	100
	Lend Lease International Pty Limited	Australia		100	100
	Lend Lease Singapore Investments Pty Limited Lend Lease Ventures Pty Ltd	Australia Australia		100 100	100 100
	International
	Lend Lease (US) Capital, Inc.	USA	USA	100	100
	Lend Lease Europe Finance plc	UK	UK	100	100

	Ownership Interest Acquired %	Date Acquired
b. Acquisitions During the year, the consolidated entity acquired an interest in the following entity:
June 2009 Communities
Lend Lease Villages Responsible Entity Limited	100	22 Oct 08

		June 2009		June 2008
	Acquiree's Carrying Value A\$m	Total Fair Value on Acquisition A\$m	Acquiree's Carrying Value A\$m	Total Fair Value on Acquisition A\$m
Acquisition of Consolidated Entities
Acquisition Cost
Cash paid for acquisition	– 0.2		–	–
Net Assets of Entities Acquired
Intangible asset(Australian Financial Services Licence)		0.2
Net assets acquired	–	0.2	–	–

On 22 October 2008 the Group acquired all of the shares in Lend Lease Villages Responsible Entity Limited (formerly Barrakee Holdings Pty Ltd) for A\$0.2 million in cash. The entity's principle activity is to be the responsible entity of the Trust of Lend Lease Primelife Limited. From acquisition date to 30 June 2009, the revenue and profit contributed to the Group is immaterial.

	Ownership Interest Disposed %	Date Disposed	Consideration Received A\$m
28. Consolidated Entities continued
c. Disposals
June 2009 During the year, the consolidated entity disposed of its interests in the following entities. The operating results to date of disposal have been included in consolidated profit. Communities
RBD Property Management Pty Ltd	100	30 Dec 08	14.4
Glenaeon Retirement Village Pty Ltd	100	30 Dec 08	41.9
Lutanda Manor Retirement Village Pty Ltd	100	30 Dec 08	18.5
Forest Hills Village Pty Ltd	100	30 Dec 08	11.7
Peppertree Hill Management Pty Ltd	100	30 Dec 08	24.0
P.V. Management Pty Limited	100	30 Dec 08	6.8
Retirement Village Properties Pty Ltd	100	30 Dec 08	3.3

June 2008

During the year, the consolidated entity disposed of its interest in the following entity. The operating results to that date were included in consolidated profit.

Communities

Lend Lease GPT (Rouse Hill) Pty Ltd	1	1 Jan 08	0.3
-------------------------------------	---	----------	-----

	Consolidated		Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
Details of the disposals of consolidated entities are as follows:
Sale Proceeds
Cash received	11.8	0.3		173.9
Convertible notes issued to Lend Lease	108.8
Total sale proceeds	120.6	0.3	–	173.9
Net Assets of Entities Disposed
Cash and cash equivalents	0.2	0.1
Trade and other receivables	1.9	0.1
Inventories	0.7	1.2
Investment properties	6.8
Other investments				173.9
Property, plant and equipment	3.8
Intangible assets	12.7
Deferred tax assets Other assets	28.3	0.3
Trade and other payables	(0.3)	(0.1)
Deferred tax liability		(0.3)
Provisions	(0.9)
Other financial liabilities	(7.0)	(0.8)
Other non financial liabilities		(0.3)
Net assets disposed	46.2	0.2	–	173.9
Cash Flows Resulting from Sale
Cash consideration	11.8	0.3		173.9
Cash disposed	(0.2)	(0.1)
Cash deconsolidated		(6.8)
Disposal costs	(1.5)
Net inflows/(outflows) of cash	10.1	(6.6)	–	173.9

29. Segment Reporting

The segment results are discussed and analysed in the Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) included with this Report.

Group

Business Segment Summary

	Segment	Revenue1, 2	Unallocated Revenue1 Other		Revenue Group		Before Tax1, 2 Segment Result		Accounted for Using Share of (Loss)/Profit the Equity Method of Investments		Other Unallocated Other Income and Expenses1 Revenues,		(Loss)/Profit Before Tax Group		After Tax Including Minority Interest (Loss)/Profit Group		After Tax Attributable Corporation Limited to Members of Lend Lease (Loss)/Profit
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	2009 June A\$m	2008 June A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
ment Seg
Retail	125.8	130.7			125.8	130.7	(95.5)	(0.2)	(143.7)	(7.0)			(239.2)	(7.2)	(222.0)	(12.5)	(207.9)	(5.4)
Public Private Communities	562.8	946.2	23.6	23.3	586.4	969.5	(517.8)	(35.9)	(27.9)	32.6	22.6	18.2	(523.1)	14.9	(463.5)	(21.5)	(464.0)	(21.2)
Partnerships Investment	1,482.2	944.6	24.8	18.1	1,507.0	962.7	44.7	36.2	16.4	8.2	22.3	15.6	83.4	60.0	71.7	59.0	71.7	59.0
Management Management Project	68.6	77.5	0.5	49.8	69.1	127.3	(0.8)	24.2	(51.6)	26.0	0.4	116.8	(52.0)	167.0	(46.3)	148.6	(46.3)	148.6
and Construction	12,421.4 12,426.8		0.6		12,422.0 12,426.8		154.4	173.6	46.3	17.8	3.6		204.3	191.4	147.7	151.0	146.4	150.0
Total segment	14,660.8 14,525.8		49.5	91.2	14,710.3 14,617.0		(415.0)	197.9	(160.5)	77.6	48.9	150.6	(526.6)	426.1	(512.4)	324.6	(500.1)	331.0
Unallocated			74.7	60.9	74.7	60.9					(206.5)	(115.8)	(206.5)	(115.8)	(153.5)	(76.8)	(153.5)	(76.8)
Total Group			124.2	152.1	14,785.0 14,677.9						(157.6)	34.8	(733.1)	310.3	(665.9)	247.8	(653.6)	254.2

1 AASB 114 'Segment Reporting' does not permit certain items of revenue and expenses to be attributed to particular segments for the purposes of determining segment revenues and segment results. These include corporate expenses; interest and dividend revenue; proceeds on the sale of investments (unless the segment's operations are primarily of a financial nature); and income tax expenses.

2 Segment revenues, expenses and results do not include intersegment transfers between business segments. Intersegment transfers are priced on an arm's length basis.

29. Segment Reporting continued

Business Segment Summary continued

	Amortisation1 Depreciation and		Amortisation2 Depreciation Other than Non Cash Expenses and		Segment Assets3		Accounted for Equity Method Investments Using the		Unallocated Corporate Assets3		Group Assets Total		Acquisition of Non Current Assets4		Liabilities3 Segment		Unallocated Corporate Liabilities3		Group Liabilities Total
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
ment Seg
Retail	1.8	1.6	144.8	52.1	694.1	787.1	544.9	668.2	12.5		5.5 1,251.5 1,460.8		1.4	27.1	228.0	321.6	127.4	119.4	355.4	441.0
Communities	7.4	6.7	555.1		124.6 1,637.6	2,190.1	275.5	84.6	80.1	12.7 1,993.2		2,287.4	35.7	19.8	293.9	326.1	83.5	74.7	377.4	400.8
Public Private
Partnerships	1.3	1.7	4.2	(2.4)	482.4	450.5	21.0	29.3	0.6	0.3	504.0	480.1	0.4		584.1	377.9	107.7	70.4	691.8	448.3
Investment
Management	0.2	3.1	21.4	5.8	385.7	481.3	176.0	239.8	11.4	7.7	573.1	728.8	1.0	0.1	36.1	45.1	22.9	32.4	59.0	77.5
Management Project
and Construction	14.1	10.3	132.7	28.5	2,805.5	2,947.7	42.0	36.7	123.8	102.7	2,971.3	3,087.1	19.2	20.7	3,151.1	3,041.9	61.3	105.0	3,212.4	3,146.9
Total segment	24.8	23.4	858.2	208.6	6,005.3	6,856.7 1,059.4 1,058.6			228.4	128.9	7,293.1	8,044.2	57.7	67.7	4,293.2	4,112.6	402.8	401.9	4,696.0	4,514.5
Unallocated									1,026.3	505.3 1,026.3		505.3					1,176.1	1,053.6 1,176.1		1,053.6
Total Group									1,254.7	634.2	8,319.4	8,549.5					1,578.9 1,455.5		5,872.1	5,568.1

Represents segment amortisation and depreciation.

1

2 Non cash expenses represent those non cash items included in segment expense, such as fair value losses, impairments and provisions.

3 AASB 114 does not permit certain assets and liabilities to be attributed to particular segments for the purposes of determining segment assets and segment liabilities. These include income tax assets and liabilities and interest bearing assets and liabilities.

4 Represents the acquisition of segment assets that are expected to be used for greater than one year. These assets represent capital expenditure and include assets acquired under finance leases but exclude investments accounted for using the equity method, investment properties and other financial assets.

m ment Su Geographical Seg	mary
		Segment Revenue		Revenue Group	(Loss)/Profit Before Tax Group		Members of Lend Lease After Tax Attributable to Corporation Limited (Loss)/Profit Group		Assets	Segment	of Non Current Acquisition Assets
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
Asia Pacific Americas Europe	3,561.3 7,400.6 3,698.9	3,418.0 6,866.9 4,240.9	3,576.9 3,727.3 7,406.1	3,434.3 6,871.7 4,311.0	(534.3) 2.3 5.4	(49.2) 165.2 310.1	(1.7) (535.7) 37.3	(57.4) 238.3 150.1	1,811.6 2,314.6 1,879.1	2,031.8 2,824.8 2,000.1	38.5 11.0 8.2	7.9 18.7 41.1
Total segment	14,660.8	14,525.8	14,710.3	14,617.0	(526.6)	426.1	(500.1)	331.0	6,005.3	6,856.7	57.7	67.7
Unallocated corporate Total Group			74.7 14,785.0	60.9 14,677.9	(206.5) (733.1)	(115.8) 310.3	(153.5) (653.6)	(76.8) 254.2
The consolidated entity comprises the following ments Business Seg					main business segments, based on the consolidated entity's			management reporting system.
Retail relates to property development from concept through to design, planning, construction, financing, leasing, property direct investments in retail assets. Retail												management and the eventual sale. This segment also includes
Communities relates to urban community development. This includes all aspects from acquisition, design, development and munities Com										management to eventual sale.
Public Private Partnerships relates to privatisation services, including the health sector, education sector, Public Private Partnerships							waste sector, defence estates and accommodation.
Management relates to the Investment Management estate and other investments. Investment												management of real estate investment funds and real estate associated debt on behalf of clients. This also includes indirect investments in real
Project Management and Construction This business segment relates to project		management, design services, construction				management and engineering.
Unallocated Business Seg	ments
Corporate

29. Segment Reporting continued

Notes to the Consolidated Financial Statements continued

Corporate includes Group Treasury, amortisation and corporate administration services. All financing costs that are not directly related to real estate development projects or investments

The Group's businesses operate on a global basis. Segment revenue is based on the geographic location of customers and segment assets are based on the geographic location of the

assets. The Group's business segments operate across the following regions: Asia Pacific, Americas and Europe.

are reported in unallocated corporate.

Geographic Segments

30. Capital Risk Management

The Group assesses its Capital Management model as part of its broader strategic plan. The Group focuses on interrelated financial parameters including return on equity, earnings growth and borrowing capacity. These are taken into account when the Group makes decisions on how to invest its capital and evaluate its existing investments.

The Group's capital includes total equity, borrowings, and other interest bearing liabilities. When investing capital, the Group's objective is to deliver strong total shareholder returns and to maintain an investment grade credit rating through adoption of a conservative financial profile. The S&P/Moody's long term credit rating at 30 June 2009 is BBB-/Baa3 (June 2008: BBB-/ Baa3).

There has been no significant change to the objectives, policies and processes for managing capital from the previous period.

The capital structure of the Group can be changed by equity issuance such as the A\$302.5 million raised in February 2009, paying dividends, dividend reinvestment plan and changing the level of debt. The co-dependence of the financial parameters focuses the Group on managing these to a balanced outcome.

31. International Currency Management and Financial Instruments

The Group operates across numerous jurisdictions and markets. In order to maintain control and discipline with the Group's financial integrity, a Financial Markets Risk Committee oversees the management of the Group's foreign currency, credit, interest rate and liquidity risk exposures, within the parameters of Board approved policy.

The Lend Lease Risk Management and Audit Committee maintains a Group–wide framework for risk management and reviews issues of material risk exposure, including credit risk.

a. Foreign Currency

Foreign Currency Risk

Foreign currency risk is the risk that the value of a financial commitment, a recognised asset or liability will fluctuate due to changes in foreign currency rates.

Foreign currency risk arises primarily from net investments in foreign operations, and firm commitments or highly probable forecast transactions settled in foreign currency.

The Group's policy is to manage currency risk so as to minimise any adverse impact of this risk and associated costs on the Lend Lease Group's consolidated result. The Group's exposure is primarily to the United States Dollar (USD), Great British Pound (GBP), Singapore Dollar (SGD) and Euro (EUR).

2009 Consolidated	AUD	USD	GBP	SGD	EUR	OTHER
Net asset exposure (local currency)	1,483.0	24.8	227.0	209.2	84.7	137.7
2008 Consolidated	AUD	USD	GBP	SGD	EUR	OTHER
Net asset exposure (local currency)	1,433.7	109.8	528.0	202.6	88.9	90.8

The Group uses both physical and derivative financial instruments (mainly forward foreign exchange contracts) to hedge its foreign currency exposures, including borrowings in the relevant foreign currencies to hedge the net investments in foreign operations.

The majority of forward exchange contracts hedge specific foreign currency exposures including receivables, payables, revenues, expenses and intercompany transactions and loans. The contracts are converted using forward rates at balance date with unrealised gains and losses recorded in the income statement or the hedge reserve when the derivative is used in a hedging relationship that satisfies AASB 139 'Financial Instruments: Recognition and Measurement' criteria. Exchange gains and losses on these contracts are accounted for in accordance with the Group's accounting policy for foreign currency (refer to Note 1.21.).

Certain derivative transactions are treated as cash flow or fair value hedges when they meet the appropriate strict hedge accounting criteria outlined in Note 1.22.

Fair Value Hedges

The Group's fair value hedges consist of foreign exchange forward contracts used as hedging instruments to protect against changes in the fair value of particular foreign denominated available for sale financial assets, or hedged items, due to movements in foreign exchange rates.

31. International Currency Management and Financial Instruments continued

a. Foreign Currency continued

Fair Value Hedges continued

Changes in the fair value of the hedging instrument are recognised in the income statement in the period in which it occurs. Changes in the fair value of the hedging instrument are offset against the change in the fair value of the hedged item as shown below:

	Consolidated
	June 2009 A\$m	June 2008 A\$m
(Loss)/gain on hedging instrument	(6.0)	1.2
Gain/(loss) on hedged item	3.9	(1.2)

Cash Flow Hedges

The Group's cash flow hedges protect against foreign exchange rate fluctuations on highly probable forecast transactions using foreign exchange forward contracts. As at 30 June 2009 the fair value of these outstanding designated derivatives recognised in equity is A\$nil (30 June 2008: A\$1.2 million). All of the forecast hedged transactions occurred during the year ended 30 June 2009 and affected the income statement in the same period. Refer to Statements of Changes in Equity – Hedging Reserve.

There are no gains or losses recognised in the income statement during the period due to hedge ineffectiveness.

Net Investments in Foreign Operations

Net investments in foreign operations are exposed to foreign currency translation risk. Foreign currency gains and losses arising from translation of net investments in foreign operations are recognised in the Foreign Currency Translation Reserve until realised. The Group does not currently use derivatives to hedge net investment in foreign operations.

Foreign Currency Hedges (Not Hedge Accounted)

The Group's foreign exchange cash flow and fair value hedges by currency and maturity date are detailed below:

	Exchange Rate	Weighted Average	Gross Receivable/(Payable) Under Contracts
	June 2009 (A\$1=)	June 2008 (A\$1=)	June 2009 A\$m	June 2008 A\$m
Contracts to buy pounds sterling at an agreed exchange rate
Not later than one year	0.48	0.49	(99.3)	(25.9)
Contracts to sell pounds sterling at an agreed exchange rate
Not later than one year	0.49	0.47	608.0	735.6
Later than one year but not later than two years	0.49	0.49	0.3	12.4
Later than two years but not later than three years		0.49		0.3
Contracts to buy US dollars at an agreed exchange rate
Not later than one year	0.76	0.93	(406.6)	(270.6)
Contracts to sell US dollars at an agreed exchange rate
Not later than one year	0.78	0.92	85.2	35.1
Contracts to buy euros at an agreed exchange rate
Not later than one year Later than one year but not later than two years	0.56	0.61 0.61	(63.8)	(10.8) (12.4)
Later than two years but not later than three years	0.61	0.61	(0.3)	(0.3)
Contracts to sell euros at an agreed exchange rate
Not later than one year	0.57	0.61	80.7	24.4
Contracts to buy Singapore dollars at an agreed exchange rate
Not later than one year	1.13	1.25	(27.3)	(20.8)
Contracts to sell Singapore dollars at an agreed exchange rate
Not later than one year		1.30		2.2
Contracts to buy Japanese yen at an agreed exchange rate
Not later than one year	68.89	97.94	(9.4)	(3.0)
Total A\$			167.5	466.2

31. International Currency Management and Financial Instruments continued

a. Foreign Currency continued

Sensitivity Analysis

The sensitivity of the AUD to movement in foreign currencies is based on a 10% fluctuation (June 2008: 5% fluctuation) in the blended rates during the financial year and the spot rate at balance date. This analysis assumes that all other variables, in particular interest rates, remain constant. No sensitivity analysis is performed for the Company, on the basis it does not have material exposures to foreign currency balances.

A 10% decrease (June 2008: 5% decrease) in the blended foreign exchange rates would have impacted the Group's (loss)/profit after tax as follows:

		Consolidated
	Increase in Loss After Tax June 2009 A\$m	Increase in Profit After Tax June 2008 A\$m
USD	2.4	7.0
GBP	(58.3)	(4.9)
SGD	1.7	0.9
EUR	(0.6)	0.8
	(54.8)	3.8

An increase of 10% (June 2008: increase of 5%) in blended foreign exchange rates has the equal and opposite effect.

A 10% decrease (June 2008: 5% decrease) in the foreign exchange spot rates would have increased the Group's net assets as follows:

		Consolidated
		Increase in Net Assets
	June 2009 A\$m	June 2008 A\$m
USD	3.1	5.8
GBP	46.4	55.0
SGD	17.9	7.8
EUR	15.4	7.2
	82.8	75.8

An increase of 10% (June 2008: increase of 5%) in the foreign exchange spot rates has the equal and opposite effect.

b. Credit Risk

Credit risk represents the risk that a counterparty will not complete its obligations under a financial instrument resulting in a financial loss to the Group. The Group has exposure to credit risk from all recognised financial assets.

On Balance Sheet Financial Instruments

The maximum exposure to credit risk at balance date on financial assets recognised in the balance sheet (excluding investments of the Group) equals the carrying amount, net of any impairment.

The Group has no significant concentrations of credit risk on either a geographic or industry specific basis and has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history.

Credit risk on derivative financial instruments is managed through a Board approved credit policy for determining acceptable counterparties. The counterparties are recognised financial intermediaries with acceptable credit ratings determined by a recognised rating agency. The policy sets out credit limits for each counterparty.

Foreign exchange contracts are subject to credit risk in relation to the counterparty failing to deliver the contracted amount of currency at settlement date. The full amount of the exposure is disclosed in Note 31a.

There was impairment of A\$16.5 million recorded against other financial assets (June 2008: A\$2.8 million). Refer to Note 9. 'Loans and Receivables' for information relating to impairment on loans and receivables.

31. International Currency Management and Financial Instruments continued

b. Credit Risk continued

Collateral

In certain circumstances, the Group will hold either financial or non financial assets as collateral to further mitigate the credit risk arising on selected transactions. The Group currently holds the following collateral as security for certain credit risk exposures:

• A trade debtor A\$24.3 million is secured by a first registered mortgage over land parcels (30 June 2008: A\$76.5 million); and
• Other receivables are not secured by a first registered mortgage over land parcels (30 June 2008: A\$4.9 million).

The Group did not obtain financial or non financial assets as collateral during the period as a result of default by a counterparty (30 June 2008: A\$nil). Consequently, any collateral held as security is not recognised in the financial statements.

c. Interest Rate Risk

Interest rate risk is the risk that the value of a financial instrument or cash flow associated with the instrument will fluctuate due to changes in the market interest rates.

The Group's policy is to manage interest rate risk that impacts directly on the Group's assets and liabilities.

The Group uses physical and derivative financial instruments to assist in managing its interest rate exposure. Speculative trading is not undertaken.

The Group's exposure to interest rate risk on financial instruments is set out below.

		Consolidated Carrying Amount		Company Carrying Amount
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
Fixed Rate Instruments
Financial assets	394.3	580.8
Financial liabilities	(995.9)	(952.2)
	(601.6)	(371.4)	–	–
Variable Rate Instruments
Financial assets	1,102.2	713.7		18.5
Financial liabilities	(339.4)	(171.1)
	762.8	542.6	–	18.5

Sensitivity Analysis – Consolidated

At 30 June 2009 it is estimated that an increase of one percentage point in interest rates would have decreased the Group's loss after tax and retained earnings by A\$7.1 million (2008: A\$3.6 million increase in the Group's profit after tax and retained earnings). The net decrease in loss after tax is due to the high proportion of fixed interest rate debt and high proportion of floating rate assets. A one percentage point decrease in interest rates would have an equal and opposite effect on retained earnings and loss after tax. The increase or decrease in interest income/expense is proportional to the increase or decrease in interest rates. Interest rate swaps have been included in this calculation.

Sensitivity Analysis – Company

The Company does not have material exposures to interest bearing financial assets or liabilities, evidenced by the table above, and on this basis, no sensitivity analysis has been provided.

31.International Currency Management and Financial Instruments continued

d. Liquidity Risk

Liquidity risk is the risk of having insufficient funds to settle financial liabilities as and when they fall due. This includes having insufficient levels of committed credit facilities.

The Group's objective is to maintain efficient use of cash and debt facilities in order to minimise the cost of borrowing to the Group and ensure sufficient availability of credit facilities.

Liquidity risk is reduced through prudent cash management which ensures sufficient levels of cash are maintained to meet working capital requirements. It also allows flexibility of liquidity by matching maturity profiles of short term investments with cash flow requirements, and timely review and renewal of credit facilities.

Lend Lease's main liquidity risk is the ability to refinance its current borrowings. At 30 June 2009 all borrowings are non current. Management is working on strategies to secure committed refinancing of the £350.0 million syndicated facility in the UK maturing in November 2010, A\$153.1 million of which was drawn down at 30 June 2009.

The following are the contractual cash flow maturities of financial liabilities (excluding financial guarantees) as at 30 June 2009, including estimated interest payments and excluding the impact of netting agreements.

Consolidated	Note	Carrying Amount A\$m	Contractual Cash Flows A\$m	Six Months or Less A\$m	Six to Twelve Months A\$m	One to Two Years A\$m	Two to Five Years A\$m	More than Five Years A\$m
June 2009
Non Derivative Financial Liabilities
Trade and other payables – current	181,2	2,364.9	2,364.9	2,204.3	160.6
Trade and other payables – non current 181,2		220.2	220.2			139.8	63.5	16.9
Borrowings & financing arrangements
– non current	19	1,125.0	1,742.6	48.6	10.4	211.5	288.4	1,183.7
Other financial liabilities – non current	21	191.6	210.2	1.8	1.8	30.8	175.8
Total		3,901.7	4,537.9	2,254.7	172.8	382.1	527.7	1,200.6
Derivative Financial Liabilities
Foreign exchange contracts:
Outflow		(34.2)	(842.4)	(836.1)	(6.0)	(0.3)
Inflow		7.8	817.0	810.3	6.3	0.4
Total		(26.4)	(25.4)	(25.8)	0.3	0.1	–	–
June 2008
Non Derivative Financial Liabilities
Trade and other payables – current	181	2,474.9	2,474.9	2,331.8	143.1
Trade and other payables – non current 181		169.1	206.6			69.4	131.6	5.6
Borrowings & financing arrangements –
non current	19	929.3	1,594.6	47.2	8.9	56.1	270.1	1,212.3
Other financial liabilities – non current	21	200.8	267.9	12.8	5.9	11.9	63.5	173.8
Total		3,774.1	4,544.0	2,391.8	157.9	137.4	465.2	1,391.7
Derivative Financial Liabilities
Foreign exchange contracts:
Outflow		(9.4)	(823.4)	(789.1)	(21.3)	(12.6)	(0.4)
Inflow		14.1	829.1	794.4	21.9	12.5	0.3
Total		4.7	5.7	5.3	0.6	(0.1)	(0.1)	–

1 The carrying amount of financial liabilities excludes 'construction revenue amounts due to customers', 'deposits received in advance', 'unearned

income', and 'unearned premium reserve' as they do not meet the definition of a financial liability under AASBs. 2 The repayment of these amounts will be funded through collection of outstanding loans and receivables: June 2009: A\$2,760.1 million.

31.International Currency Management and Financial Instruments continued

d. Liquidity Risk continued

Company	Note	Carrying Amount A\$m	Contractual Cash Flows A\$m	Six Months or Less A\$m	Six to Twelve Months A\$m	One to Two Years A\$m	Two to Five Years A\$m	More than Five Years A\$m
June 2009
Non Derivative Financial Liabilities
Trade and other payables – current	181	1,883.0	1,883.0	1,883.0	–	–	–	–
June 2008 Non Derivative Financial Liabilities
Trade and other payables – current	18	1,537.2	1,537.2	1,537.2	–	–	–	–

1 The repayment of these amounts will be funded through collection of outstanding loans and receivables: June 2009: A\$3,627.2 million.

Details of other contractually committed cash flows the Group and the Company are exposed to are in Note 32. 'Commitments'.

e. Fair Values of Financial Assets and Liabilities

Equity investments traded on organised markets have been valued by reference to market prices prevailing at balance date. For non traded equity investments, the fair value is determined by an assessment by the Directors based on the underlying net assets, future maintainable earnings and any special circumstances pertaining to a particular investment (refer to Note 13. 'Other Financial Assets').

On Balance Sheet Financial Instruments

All financial instruments recognised on the balance sheet, including those instruments carried at amortised cost, are recognised at amounts that represent a reasonable approximation of fair value, with the exception of non current borrowings as follows:

				Consolidated			Company
		Carrying	June 2009	Carrying	June 2008	Carrying	June 2009	June 2008 Carrying
	Note	Amount A\$m	Fair Value A\$m	Amount A\$m	Fair Value A\$m	Amount A\$m	Fair Value A\$m	Amount A\$m	Fair Value A\$m
Liabilities
Non Current
Commercial notes	19	971.9	772.9	929.3	898.0	–	–	–	–

The fair value of commercial notes has been calculated by discounting the expected future cash flows by the appropriate government bond rates and credit margin applicable to the relevant term of the commercial note.

31.International Currency Management and Financial Instruments continued

e. Fair Values of Financial Assets and Liabilities continued

On Balance Sheet Financial Instruments continued

Basis of Determining Fair Value

The following table summarises the basis of valuation of financial instruments that are not measured at cost or amortised cost in the financial report:

		Active Market or		Source of
	Note	Valuation Technique	Basis of Valuation	Information
Financial Instrument
Other Financial Assets
Available for sale
Negotiable instruments	13	Active market	Market value (current bid price)	External
Australian Prime Property Fund	13	Valuation technique	Unit price	External
Lend Lease Global Properties,
SICAF	13	Valuation technique	Net asset value (audited financial statements)	External
			International Valuation Standards Committee
Lend Lease Retail Partnership	13	Valuation technique	International Valuation Application 1	External
Cohen & Steers, SICAV	13	Valuation technique	Unit price	External
Lend Lease Core Plus Fund	13	Valuation technique	Unit price	External
			Net asset value external using audited
Asia Pacific Investment Company	13	Valuation technique	financial statements	External
Other	13	Active market	Market value (current bid price)	External
Fair value through profit or loss
Negotiable instruments	13	Valuation technique	Investor reports	External
Unlisted equity investments	13	Valuation technique	Internal valuation	Internal
Derivatives	13	Active market	Market value (current bid price)	External
Other Financial Liabilities
Derivatives	21	Active market	Market value (current bid price)	External
Financial guarantees	21	Valuation technique	Fair value approximates cost	External

Refer to Note 1. 'Significant Accounting Policies' for the basis of determining fair values by type of financial instrument.

The net fair value of forward foreign exchange contracts is included in 'Other Financial Assets' and 'Other Financial Liabilities' (refer to Note 13. 'Other Financial Assets' and Note 21. 'Other Financial Liabilities'). They represent the net unrealised gain or loss resulting from converting the forward foreign exchange contracts to forward rates at balance date.

The net fair value of financial assets or financial liabilities arising from swap agreements has been determined as the marked to market value.

31. International Currency Management and Financial Instruments continued

f. Equity Price Risk

Equity price risk is the risk that the fair value of either a traded or non traded equity investment, derivative equity instrument, or a portfolio of such financial instruments, decreases in the future. The Group is exposed to equity price risk on all traded or non-traded financial instruments measured at fair value (refer to the table in Note 31e.).

During the year, the Group entered into a series of net cash settled equity derivative swap contracts, the value of which is directly correlated to the FKP Property Group share price.

Sensitivity Analysis – Consolidated

A 10.0% increase (June 2008: 5.0%) in the fair value of 'Other Financial Assets' (refer to Note 13. 'Other Financial Assets'), with reference to the 'Basis of Determining Fair Value' table in Note 31e., would have increased the value of available for sale financial assets and equity by A\$27.0 million after tax (30 June 2008: A\$15.0 million increase), and increased the value of 'fair value through profit or loss' assets and decreased the Group's loss after tax and equity by A\$5.0 million (30 June 2008: A\$1.3 million). A 10.0% decrease (June 2008: 5.0%) would achieve an equal and opposite result on equity and profit after tax.

Sensitivity Analysis – Company

No sensitivity analysis is performed for the Company, on the basis it does not have a material exposure to equity price risk.

		Consolidated	Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
32. Commitments1
a. Operating Lease Commitments Estimated aggregate amount of non cancellable operating lease expenditure agreed or contracted but not provided for in the financial statements:
Land and buildings – self occupied Plant and equipment	184.2 14.4	186.5 20.2
	198.6	206.7	–	–
At balance date commitments in relation to non cancellable operating leases are payable as follows:
Due within one year Due between one and five years Due later than five years	53.4 112.9 32.3	51.4 131.1 24.2
	198.6	206.7	–	–

1 The commitments outlined in this note do not include the commitments of the entities accounted for using the equity method (refer to Note 11. 'Investments Accounted for Using the Equity Method').

The Group leases various land and buildings and plant and equipment under non cancellable operating leases. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated.

		Consolidated	Company
	June 2009 A\$m	June 2008 A\$m	June 2009 A\$m	June 2008 A\$m
32.Commitmentscontinued
b. Finance Lease Commitments
At balance date commitments in relation to the finance leases are payable as follows:
Due within one year	0.1	0.1
Due between one and five years Due later than five years	167.7	0.2 171.1
Recognised as a liability	167.8	171.4	–	–
Lease liabilities provided for in the financial statements:
Current	0.1	0.1
Non current	167.7	171.3
	167.8	171.4	–	–
c. Capital Expenditure At balance date the aggregate amount of capital expenditure contracted but not provided for in the financial statements is as follows:
Property, Plant and Equipment
Due within one year Due between one and five years		9.1 8.0
	–	17.1	–	–
d. Investments
At balance date capital commitments existing in respect of
interests in investments accounted for using the equity method and other investments contracted but not provided for in the financial statements are as follows:
Due within one year	21.2	33.9
Due between one and five years	173.9	174.7
Due later than five years	4.7	2.2
	199.8	210.8	–	–

Lend Lease has provided a commitment for A\$61.2 million in relation to its investment in a joint venture entity. In the event that certain loan targets of the joint venture entity have not been achieved by November 2010, Lend Lease may be required to contribute equity up to A\$61.2 million. This is in addition to the commitments above.

June 2009 A\$m 33. Notes to the Statements of Cash Flows a. Reconciliation of (Loss)/Profit After Tax to Net Cash Provided by Operating Activities (Loss)/Profit After Tax (Including Minority Interest) (665.9) Amortisation and depreciation 32.6 Net gain on sale of other assets (46.6) Net impairment on investments accounted for using the equity method 67.2 Impairment of property, plant and equipment 20.3 Impairment of other financial assets 16.5 Impairment of investment in Group entities Net unrealised foreign exchange loss/(gain) and currency	June 2008 A\$m 247.8 27.0 (70.5) 3.0 0.4 2.8	June 2009 A\$m (36.0) 0.1 25.8	June 2008 A\$m 669.4 0.1
hedging costs 71.6		(1.9) (0.3)	1.8
Net fair value loss on equity derivative swaps 48.4
Loss/(profit) accounted for using the equity method 160.5	(77.6)
Dividends/distributions from investments accounted for
using the equity method 91.7	66.9
Impairment of goodwill and intangibles 253.5
Fair value loss on investment properties 62.2	38.2
Other	(0.5) (4.2)	1.1	25.6
Net cash provided by/(used in) operating activities
before changes in assets and liabilities 111.5	231.9	(9.3)	696.9
Changes in Assets and Liabilities Adjusted for
Effects of Purchase and Disposal of Subsidiaries
and Operations During the Financial Year
Decrease/(increase) in receivables 144.4	(119.8)	76.7	(6.2)
Decrease in inventories 338.6	130.7
(Increase)/decrease in other assets (71.7)	151.3
(Decrease)/increase in defined benefit plan assets/liabilities (73.7)	(43.9)	1.3	(5.6)
Increase/(decrease) in payables Increase/(decrease) in other liabilities 27.2	2.7 (88.2) (29.0)	(2.9) (4.9)	(8.1) (20.5)
(Decrease)/increase in deferred tax items (119.8)	(21.7)	(5.8)	1.8
(Decrease)/increase in current tax liability/asset (26.0)	60.8	8.6	47.0
Increase/(decrease) in other provisions 49.0	(3.4)	(4.2)	0.1
Net cash provided by operating activities 382.2	268.7	59.5	705.4

			Consolidated
		June 2009		June 2008
	Acquiree's Carrying Value A\$m	Total Fair Value on Acquisition A\$m	Acquiree's Carrying Value A\$m	Total Fair Value on Acquisition A\$m
b. Acquisition of Business
Acquisition Cost
Cash paid for acquisition				16.0
Cash paid for acquisition costs				1.0
Total acquisition cost/net outflow of cash	–	–	–	17.0
Net Assets of Entities Acquired
Receivables			3.6	3.6
Property, plant and equipment			0.7	0.7
Intangible assets (management agreements)			12.7	12.7
Total acquisition cost	–	–	17.0	17.0

34. Employee Benefits

a. Lend Lease Employee Share Plans

Lend Lease has as a core value the concept of 'partnering' capital and labour. This concept has, over decades, been advanced in many practical ways at Lend Lease through philosophies such as employee ownership and profit sharing.

Currently employees own approximately 7.85% of the issued capital of Lend Lease Corporation.

In October 1988, shareholders approved an annual allotment of 0.5% of the issued capital of Lend Lease Corporation at 50 cents per share to be used for the benefit of Lend Lease Group employees. This programme was suspended by the Board in May 2003.

Australia: Employee Share Acquisition Plan (ESAP)

• – In accordance with the 1988 shareholder approval, ESAP was established in December 1988 for the purpose of employees acquiring shares in Lend Lease Corporation.
• – ESAP is funded by Lend Lease subscriptions. Those subscriptions have been used to acquire shares in Lend Lease Corporation at market value on behalf of employees, who may be nominated as members of ESAP.
• – Employees may also be allocated shares by way of bonus arrangements on the basis of individual, corporate and business unit performance.
• – At balance date, approximately 2,410 employees (June 2008: 2,728) were eligible to participate in ESAP.

UK/Europe/Asia: Employee Share Plan

• – The European (Guernsey based) Restricted Share Plan ('the Restricted Share Plan') was established in 1998. The Plan is similar in operation to the Australia-based ESAP.
• – In 2002, two new UK based Inland Revenue approved Share Incentive Plans (SIP) were established for the acceptance of employee profit share contributions used to acquire Lend Lease Corporation shares for UK based Lend Lease Group employees. These plans are currently not accepting new contributions whilst Lend Lease makes all profit share payments to employees in cash. At balance date approximately 2,386 employees (June 2008: 3,169) were eligible to participate in the SIP, should it recommence accepting contributions.
• – Shares in the Restricted Share Plan may be allocated to employees in the UK, Europe and Singapore based on individual and business unit performance. The Restricted Share Plan can acquire Lend Lease Corporation shares at market value on behalf of employees. The value of allocations to employees is ultimately based on a combination of the Lend Lease Corporation share price and the respective currencies and Australian dollar exchange rates. At balance date, approximately 2,386 UK, European and Singapore employees (June 2008: 4,646) were eligible to participate in the plan.

Eligibility

The rules for eligibility for particular plans are determined by reference to the regulatory, legal and tax rules of each country in which the Group operates.

Dividends and/or Voting Rights

Generally, employees in the various operating share plans are entitled to dividends and voting rights for allocated shares. The plans reflect this intention subject to regulatory, legal and tax constraints. Voting and dividend rights on any unallocated shares reside with the trustees of the relevant share plan trusts. The trustee may exercise these rights in accordance with any fiduciary or governance rules pertaining to the deed or trust laws in the legal/tax jurisdiction the trust operates within.

34. Employee Benefits continued

b. Lend Lease Employee Benefit Vehicles

In addition to the plans discussed in Note 34a., Lend Lease has over the years established a range of employee share ownership vehicles. The Lend Lease Retirement Benefit Fund (RBF) was established in 1984 with shareholder approval for the benefit of employees through the allotment at par value of 5.0 million Lend Lease Corporation shares. The balance of the assets of RBF at 30 June 2009 was 14.1 million Lend Lease Corporation shares (June 2008: 14.1 million Lend Lease shares). The fund was originally intended to provide excess superannuation benefits but this purpose has now become defunct due to changes in the law. For some years, earnings have been used to fund the programs of the Lend Lease Foundation. The Lend Lease shares in RBF are not available for allocation to employees other than in the event of a change of control of Lend Lease Corporation and, in accordance with the Trust Deed, the capital of the Trust is not available to Lend Lease Corporation. The RBF Trustees are independent of Lend Lease Corporation. In the event of a change of control, the RBF Trustees may distribute RBF funds to employees who cease to be employees during the 12 months after a change of control. The RBF Trustees have discretion as to how RBF funds are distributed following a change of control. Under AASBs, RBF, while not legally controlled, is required to be consolidated for accounting purposes and payments from it on a change of control are therefore now relevant to the Company's financial statements. Any payments that the RBF Trustees may make as a result of a change of control of Lend Lease Corporation are an obligation of RBF and not the Company. Any payments made will need to be funded by the Trust and therefore cannot exceed the value of the assets of RBF, which was A\$112.3 million at 30 June 2009 (June 2008: A\$150.8 million). However, as RBF is consolidated by the Company, this potential obligation is disclosed as a contingent liability. Further, given the timing and basis on which the Trust purchased its Lend Lease Corporation shares, it should be noted that any capital gains tax payable on the Lend Lease Corporation shares sold by the Trust as a result of a change of control (or otherwise) may be recorded from an accounting viewpoint as a tax expense of the consolidated entity.

In October 1985, the Lend Lease Employee Investment Trust (EIT) was established to enable employees to invest in the Company. At that time, shareholders approved a one for ten renounceable rights issue and the allotment at the same price of an equivalent number of shares to EIT. EIT acquired these shares with debt funds raised through an external financier. Over the years, strong growth in Lend Lease dividend flows enabled EIT to pay down its external debt. In the following years, EIT acquired shares through on-market purchases, participation in bonus issues and dividend reinvestment. Between 1984 and 1988 it also accumulated shares through the prior shareholders' resolution to allot 0.5% of issued capital to employee benefit vehicles. At 30 June 2009, there were 11.6 million (June 2008: 11.6 million) Lend Lease Corporation shares held by EIT, of which 11.3 million shares were available for allocation to employees. For some time the Trustee of EIT has directed surplus dividends to help fund the Lend Lease Foundation's programs. In accordance with the Trust Deed, the capital of the Trust is not available to Lend Lease Corporation. As with RBF, AASBs require consolidation of EIT for accounting purposes, regardless of the control of EIT by independent Trustees. Payments from EIT have therefore become relevant to the Company's financial statements. On a change of control, the EIT Trustees may (but are not required to) terminate the Trust and distribute allocated proceeds to employees and unallocated proceeds to the Lend Lease Superannuation Fund or to RBF. Any payments are an obligation of EIT and not the Company, and cannot exceed the assets of the Trust of A\$88.1 million as at 30 June 2009 (June 2008: A\$118.3 million). No contingency is recorded in these financial statements as the potential for such payments is remote, with any termination of EIT in such circumstances, and any subsequent distribution to other funds, entirely at the discretion of the EIT Trustees. Given the timing and basis on which the Trust purchased its Lend Lease Corporation shares, it should be noted that any capital gains tax payable on the Lend Lease shares sold by EIT as a result of a change of control (or otherwise) may be recognised from an accounting viewpoint as a tax expense of the consolidated entity.

The consolidation of EIT and RBF under AASBs creates certain anomalies for the Group's reported profit or loss where distributions from those trusts are used to fund employee programs under the Lend Lease Foundation (as they have been doing for some time). In particular, the consolidation requires dividends on Lend Lease shares which are distributed by the trusts to the Foundation be eliminated from the income of the Group. On 30 June 1992, Lend Lease agreed that if it were to receive distributions from EIT or RBF, it would apply an equal amount for Foundation programs. The effect is that the Group immediately accrues for this obligation, but is now no longer entitled to recognise the matching income that creates the obligation. This results in a net expense to the income statement, which does not reflect the cash position. In the year to 30 June 2009, the net impact was an after tax expense of A\$4.3 million (June 2008: A\$3.1 million). In future years, it would be anticipated that there would be similar impacts on reported profits.

In 1988, Lend Lease established ESAP as an employee reward scheme. ESAP was established to prospectively replace EIT as the principal employee share plan of the Group in Australia. Other similar plans have subsequently been established (refer to earlier share plan comments). The details of the employee share plans, including ESAP, are set out in Note 34a.

Access to the Lend Lease Foundation is another important employee benefit, providing learning, personal development, community and other activities. Established in 1983, the Foundation's programs are administered by employee representatives.

34. Employee Benefits continued

c. Share Based Payments

Short Term Incentives (STI)

The STI plan is an annual bonus plan where executives receive benefits dependent on the achievement of both Lend Lease financial targets and individual personal targets. The total value of the potential benefit (target opportunity) varies by executive, but is generally linked to salary.

The STI comprises a cash element paid in September following year end and a deferred element. The deferred element represents Lend Lease Corporation shares based on the share price at the date of determination of the bonuses. The shares are then held in trust on behalf of the executive for the deferred period. For executives to receive the full deferral they must be employed by the Group at the date of vesting, which will usually be one year from the date of grant.

Long Term Incentives (LTI)

The current LTIs of Lend Lease were introduced and approved by the Board in 1999 and updated and extended for awards from 2001 onwards. The objectives of the LTIs are essentially twofold:

• – Align executives with the long term interests of Lend Lease and its shareholders; and
• – Attract and retain high calibre executives by providing competitive rewards that relate to the performance of the Group, the individual executive and the Lend Lease Corporation share price.

LTI grants are normally made in August each year. The Personnel and Organisation Committee intends that these awards will vest in Lend Lease Corporation shares rather than cash, with settlement occurring upon vesting if performance hurdles are met. Grants depend on personal contribution and potential, and are designed to retain and motivate high performing and key executives. The LTIs are in the form of an Australian dollar figure 'grant' (converted from local salary for overseas participants), which is 'invested' in performance shares over time to deliver value depending on:

• – Whether the executive remains with the Group if the executive resigns before vesting, the grant will lapse; and
• – The performance of the Group.

The Personnel and Organisation Committee approved one change to the rules of the LTI for the 2005 awards onwards. The rules now provide that in the event of a change in control of Lend Lease Corporation, all awards will vest upon change in control, to the extent that performance conditions have been met. Participants would then be entitled to a pro rata settlement, with the Board having discretion to allow the entitlement to exceed this pro rata amount, if circumstances so provide.

Arrangements for LTI Awards Granted in the June 2007 and June 2008 Financial Years

For the June 2007 and June 2008 financial year awards, the Personnel and Organisation Committee set new performance hurdles to align interests between the participant and shareholders and for consistency with a new STI structure.

For awards granted 1 July 2006 and 1 July 2007 the performance hurdle is based on two equal measures: long term profitability as measured by earnings per share (EPS) and external Total Shareholder Return (TSR) compared with the TSR of the individual ASX100 listed companies as at the commencement of the performance period. The change in the TSR comparator group better reflects those companies against which Lend Lease competes for capital. The performance measures are:

• – TSR measured against the ASX100 companies (with 50% vesting at median performance, rising proportionately to 100% on reaching top quartile performance); and
• – EPS on operating profit after tax reported in the financial statements adjusted for treasury shares (with 100% vesting if a minimum compound annual growth rate of 10% is achieved over the three year vesting period).

Each of the two performance hurdles is measured and can vest independently. The executive must remain with the Company until vesting date for the award to vest. The period may be shortened if an executive is a 'good leaver', that is, an executive who leaves employment by reason of death, total and permanent disability, redundancy or other reason as determined by the Personnel and Organisation Committee. Performance conditions continue to apply.

Arrangements for LTI Awards Granted in the June 2009 Financial Year

For the June 2009 financial year award, the Personnel and Organisation Committee set new performance hurdles to align interests between the participant and shareholders and for consistency with a new STI structure.

For awards granted 1 September 2008 the performance hurdle is based on three equal measures: long term profitability as measured by earnings per share (EPS), external TSR compared to the TSR of the individual ASX100 listed companies as at the commencement of the performance period and a retention component. The performance measures are:

• – TSR measured against the ASX100 companies (with 50% vesting at median performance, rising proportionately to 100% on reaching top quartile performance);
• – EPS on operating profit as defined in the current financial year for treasury shares; and
• Retention component will vest if the executive remains in employment with Lend Lease for three years.

Each of the three performance hurdles is measured and can vest independently. The executive must remain with the Company until vesting date for the award to vest. The period may be shortened if an executive is a 'good leaver'.

34. Employee Benefits continued

c. Share Based Payments continued

Other LTI Awards

During the June 2009 financial year bespoke LTI plans have been granted to certain executives by the Personnel and Organisation Committee. These awards tend to have performance hurdles based on internal business unit performance targets, such as net profit after tax, global operating margin and global funds under management. The relevant performance hurdles must be satisfied in order for awards to vest, but the hurdles can vest independently. The executive must remain with the Group until vesting date for the award to vest. The Personnel and Organisation Committee intends that these awards will vest in Lend Lease Corporation shares.

Retention Awards

When the Board believes an employee is an outstanding performer and Lend Lease and its shareholders will gain from incentivising him or her to remain with Lend Lease, a retention award may be made. As an incentive to remain with the Group requires a degree of certainty of value delivered to the individual at the end of the retention period, performance conditions are not generally applied to the ultimate payment of such an award. Refer to the table below for details of the vesting conditions of retention awards.

Summary of LTI and Retention Awards

		2009 Number of Lend Lease Corporation Share Equivalents
Grant Date	Vesting Date	Opening Balance	Granted	Lapsed	Exercised	Closing Balance
STI Awards
Aug 2007	Aug 2008	463,535		(58,443)	(405,092)
Aug 2007	Aug 2009	6,318		(6,318)
Aug 2008	Aug 2009		988,858	(83,904)	(42,286)	862,668
Total STI awards		469,853	988,858	(148,665)	(447,378)	862,668
LTI Awards
Jul 2006	Jun 2009	914,623		(877,470)	(37,153)
Jul 2006	Jun 2009	212,874		(212,874)
Jul 2007 Jul 2007	Jun 2010 Jun 2010	898,737 151,733	3,806	(241,560) (151,733)		660,983
Jan 2008	Jun 2010	59,667				59,667
Jan 2008	Jun 2012	17,628	57,267			74,895
Jan 2008	Jun 2013	14,423	46,885			61,308
Sep 2008	Aug 2012		1,578,699		(14,548)	1,564,151
Apr 2009	Apr 2012		1,796,371			1,796,371
Total LTI awards		2,269,685	3,483,028	(1,483,637)	(51,701)	4,217,375
Retention Awards
Sep 2005	Jul 2008	197,218			(197,218)
Oct 2006	Sep 2008	84,407			(84,407)
Oct 2006	Sep 2009	84,408			(84,408)
Oct 2006	Sep 2010	84,408		(84,408)
Jul 2007	Jul 2009	25,340				25,3401
Jul 2007 Jul 2007	Jun 2010 Jun 2010	50,680 80,214				50,6801 80,2141
Aug 2007	Jun 2012	141,367				141,3671
Sep 2007	Jun 2010	16,279				16,2791
Sep 2007	Jun 2010	37,132				37,1321
Sep 2007	Jun 2011	33,440				33,4401
Oct 2007	Oct 2008	5,130			(5,130)
Jan 2008	Jan 2011	11,152				11,1521
Apr 2008	Apr 2011	61,885				61,8851
Sep 2008	Mar 2010		153,126		(51,042)	102,0841
Jul 2008	Jun 2009		111,199	(1,758)	(109,441)
Nov 2008	Jun 2012		94,201			94,2011
Total retention awards		913,060	358,526	(86,166)	(531,646)	653,774
Total		3,652,598	4,830,412	(1,718,468)	(1,030,725)	5,733,817

1 Award settled in shares and is dependent upon service to vesting date. A good leaver will be entitled to pro rata vesting. A 'good leaver', that is, an executive who leaves employment by reason of death, total and permanent disability, redundancy or other reason as determined by the Personnel and Organisation Committee, will be entitled to pro rata vesting.

34. Employee Benefits continued

c. Share Based Payments continued

Summary of LTI and Retention Awards continued

		2008 Number of Lend Lease Corporation Share Equivalents
Grant Date	Vesting Date	Opening Balance	Granted	Lapsed	Exercised	Closing Balance
STI Awards
Aug 2007	Aug 2008		489,542	(26,007)		463,535
Aug 2007	Aug 2009		6,318			6,318
Total STI awards		–	495,860	(26,007)	–	469,853
LTI Awards
Jul 2005	Jun 2008	1,039,768		(1,006,869)	(32,899)
Jul 2006	Jun 2009	1,004,647	34,878	(82,818)	(42,084)	914,623
Jul 2006	Jun 2009	212,874				212,874
Jul 2007	Jun 2010		921,175	(22,438)		898,737
Jul 2007	Jun 2010		151,733			151,733
Jan 2008	Jun 2010		59,667			59,667
Jan 2008 Jan 2008	Jun 2012 Jun 2013		17,628 14,423			17,628 14,423
		2,257,289	1,199,504	(1,112,125)	(74,983)	2,269,685
Total LTI awards
Retention Awards
Dec 2002	Jun 20081	31,319	27,973		(59,292)
Jul 2005	Apr 20082	110,664			(110,664)
Sep 2005	Jul 2008	197,218				197,2182
Oct 2006	Sep 2007	84,407			(84,407)
Oct 2006	Sep 2008	84,407				84,4073
Oct 2006 Oct 2006	Sep 2009 Sep 2010	84,408 84,408				84,4083 84,4083
Jul 2007	Jul 2009		25,340			25,3403
Jul 2007	Jun 2010		50,680			50,6803
Jul 2007	Jun 2010		80,214			80,2143
Aug 2007	Jun 2012		141,367			141,3673
Sep 2007	Jun 2010		16,279			16,2793
Sep 2007	Jun 2010		37,132			37,1323
Sep 2007	Jun 2011		33,440			33,4403
Oct 2007	Oct 2008		5,130			5,1303
Jan 2008	Jan 2011		11,152			11,1523
Apr 2008	Apr 2011		61,885			61,8853
Total retention awards		676,831	490,592	–	(254,363)	913,060
Total		2,934,120	2,185,956	(1,138,132)	(329,346)	3,652,598

1 Award settled in cash and vested on a progressive monthly basis over the award service life.

2 Award settled in cash or shares at the option of the executive and is dependent upon service to vesting date.

3 Award settled in shares and is dependent upon service to vesting date. A good leaver will be entitled to pro rata vesting.

Amounts Recognised in the Financial Statements

LTI awards are valued using a Monte-Carlo simulation methodology where the share price can be projected based on the assumptions underlying the Black-Scholes formula. Retention awards are valued by discounting the share price by the expected dividends assumed to be paid from the valuation date until the vesting date (if applicable). The model inputs include the Lend Lease Corporation share price, a risk free interest rate, expected volatility and dividend yield.

In August 2007 the Personnel and Organisation Committee modified the rules of the 1 July 2006 LTI such that it now vests in shares rather than cash, other than for certain specified executives or where share settlement is not practical. The modified LTI was valued using a Monte-Carlo simulation methodology where the share price can be projected based on the assumptions underlying the Black-Scholes formula.

34. Employee Benefits continued

c. Share Based Payments continued

Amounts Recognised in the Financial Statements continued

Details of the amounts recognised in the financial statements and the fair values relating to STI, LTI and retention awards for the years ended 30 June 2009 and 2008 are set out below.

		2009
Grant Date Vesting Date	Fair Value at Grant Date A\$	Fair Value June 20091 A\$	Award Fair Value at June 20092 A\$	Expense 2009 A\$	Equity Settled Award in ECR at June 2009 A\$
STI Awards
Aug 2008 Aug 2009	9,191,633	7.01	6,047,303	8,018,672	8,018,672
Total STI awards	9,191,633		6,047,303	8,018,672	8,018,672
LTI Awards
Jul 2006 Jun 2009	10,264,064			(4,119,479)
Jul 2006 Jun 2009	2,053,170			(807,502)
Jul 2007 Jun 2010	10,607,330	7.01	4,633,491	(1,762,706)	1,686,947
Jul 2007 Jun 2010	1,747,205			(258,705)
Jan 2008 Jun 2010	769,108	7.01	418,266	318,282	450,826
Jan 2008 Jun 2012	692,416	7.01	525,014	166,556	192,597
Jan 2008 Jun 2013 Sep 2008 Aug 2012	542,129 10,372,052	7.01 7.01	429,769 10,964,699	105,066 2,366,583	121,767 2,366,583
Apr 2009 Apr 2012	10,555,476	7.01	12,592,561	944,614	944,614
Total LTI awards	47,602,950		29,563,800	(3,047,291)	5,763,334
Retention Awards
Oct 2006 Sep 2008	1,374,992			123,749
Oct 2006 Sep 2009	1,375,008			447,362
Oct 2006 Sep 2010	1,375,008			(231,071)
Jul 2007 Jul 2009	469,804	7.01	177,633	234,260	469,162
Jul 2007 Jun 2010	824,057	7.01	355,267	274,435	549,622
Jul 2007 Jun 2010	1,500,000	7.01	562,300	499,544	1,000,456
Aug 2007 Jun 2012	2,500,000	7.01	990,983	514,374	955,468
Sep 2007 Jun 2010	274,138	7.01	114,116	99,662	174,477
Sep 2007 Jun 2010	612,678	7.01	260,295	220,106	392,572
Sep 2007 Jun 2011	540,056	7.01	234,414	143,989	252,079
Oct 2007 Oct 2008	99,984			29,151
Jan 2008 Jan 2011 Apr 2008 Apr 2011	108,844 800,173	7.01 7.01	78,176 433,814	26,783 266,968	54,322 315,973
Sep 2008 Mar 2010	1,500,000	7.01	715,609	748,655	222,412
Jul 2008 Jun 2009	1,033,617			1,017,276	1,017,276
Nov 2008 Jun 2012	747,014	7.01	660,349	124,533	124,533
Total retention awards	15,135,373		4,582,956	4,539,776	5,528,352
Total	71,929,956		40,194,059	9,511,157	19,310,358

1 Represents the Lend Lease Corporation share price at 30 June 2009 for equity settled awards.

2 Represents the number of Lend Lease Corporation share equivalents granted at their fair value at 30 June 2009.

During the financial year ended 30 June 2009, a A\$19.2 million expense was recognised in the income statement in relation to equity settled share based payment awards. This was partially offset by a net accrual reversal of A\$9.7 million relating to internal performance measurements of the 2006 LTI equity settled plan which did not vest, the internal performance measurement of the 2007 equity settled plan which is not expected to vest and previously accrued expenses for employees that left the Company during the year.

34. Employee Benefits continued

c. Share Based Payments continued

Amounts Recognised in the Financial Statements continued

			2008
Grant Date	Vesting Date	Fair Value at Grant Date A\$	Fair Value June 20081 A\$	Award Fair Value at June 20082 A\$	Expense 2008 A\$	Cash Settled Award Liability at June 20083 A\$	Equity Settled Award in ECR at June 20084 A\$
STI Awards
Aug 2007	Aug 2008	9,169,122	9.55	4,426,759	8,682,011		8,682,011
Aug 2007	Aug 2009	118,336	9.55	60,337	118,336		118,336
Total STI awards		9,287,458		4,487,096	8,800,347	–	8,800,347
LTI Awards
Jul 2005	Jun 2008	8,066,725			(5,559,204)
Jul 2006	Jun 2009	10,264,064	9.55	8,734,650	2,940,513		6,987,720
Jul 2006	Jun 2009	2,053,170	5.69	1,211,253	(243,386)	807,502
Jul 2007	Jun 2010	10,607,330	9.55	8,582,938	3,449,652		3,449,652
Jul 2007	Jun 2010	1,747,205	5.12	776,114	258,705	258,705
Jan 2008	Jun 2010	769,108	9.55	569,820	132,545		132,545
Jan 2008	Jun 2012	243,443	9.55	168,347	26,041		26,041
Jan 2008	Jun 2013	190,961	9.55	137,740	16,701		16,701
Total LTI awards		33,942,006		20,180,862	1,021,567	1,066,207	10,612,659
Retention Awards
Dec 2002	Jun 2008	2,486,782			(1,637,172)
Jul 2005	Apr 2008	1,453,834			37,286
Sep 2005	Jul 2008	2,630,888	9.55	1,883,432	(478,744)	1,883,432
Oct 2006 Oct 2006	Sep 2007 Sep 2008	1,374,992 1,374,992	9.55	806,087	259,354 718,923		1,251,241
Oct 2006	Sep 2009	1,375,008	9.55	806,096	472,537		822,421
Oct 2006	Sep 2010	1,375,008	9.55	806,096	351,925		612,503
Jul 2007	Jul 2009	469,804	9.55	241,997	234,902		234,902
Jul 2007	Jun 2010	824,057	9.55	483,994	275,187		275,187
Jul 2007	Jun 2010	1,500,000	9.55	766,044	500,912		500,912
Aug 2007	Jun 2012	2,500,000	9.55	1,350,055	441,094		441,094
Sep 2007	Jun 2010	274,138	9.55	155,464	74,815		74,815
Sep 2007	Jun 2010	612,678	9.55	354,611	172,466		172,466
Sep 2007	Jun 2011	540,056	9.55	319,352	108,090		108,090
Oct 2007 Jan 2008	Oct 2008 Jan 2011	99,984 165,841	9.55 9.55	48,992 106,502	70,833 27,539		70,833 27,539
Apr 2008	Apr 2011	800,173	9.55	591,002	49,005		49,005
	Total retention awards	19,858,235		8,719,724	1,678,952	1,883,432	4,641,008
Total		63,087,699		33,387,682	11,500,866	2,949,639	24,054,014

1 Represents the Lend Lease Corporation share price at 30 June 2008 for equity settled awards and the actuarial valuation at 30 June 2008 for cash settled awards.

2 Represents the number of Lend Lease Corporation share equivalents granted at their fair value at 30 June 2008.

3 Awards to be settled in cash and accordingly the obligation recognised as a liability.

4 Awards to be settled in shares and accordingly the obligation recognised in equity compensation reserve (ECR).

During the financial year ended 30 June 2008, a A\$19.1 million expense was recognised in the income statement in relation to equity settled share based payment awards. This was partially offset by a net accrual reversal of A\$7.6 million relating to the 2005 LTI cash settled plan that did not vest and certain cash settled retentions that vested during the financial year at a value below that accrued in the prior year.

35. Key Management Personnel Disclosures

Key Management Personnel compensation details are set out in Section 3 of the Directors' Report.

Equity Holdings and Transactions

Shareholdings Financial Year Ended 30 June 2009

	Year	Shares Held at Beginning of Financial Year	Shares Received During the Year1,2	Other Net Change to Shares	Shares Held at End of Financial Year
Non Executive Directors
D Crawford	2009	33,895	14,233		48,128
	2008	28,122	5,773		33,895
P Colebatch	2009	5,767	5,124		10,891
	2008	3,689	2,078		5,767
G Edington	2009	26,484	4,839		31,323
	2008	24,521	1,963		26,484
P Goldmark	2009	15,579	5,124		20,703
	2008	13,501	2,078		15,579
J Hill	2009	5,109	5,124		10,233
	2008	3,031	2,078		5,109
D Ryan	2009	15,834	5,408		21,242
	2008	13,640	2,194		15,834
M Selway	2009	4,000	2,488		6,488
Executive Director	2008			4,000	4,000
S McCann	2009 2008	2,367 1,333	70,934 1,034		73,301 2,367
Executive
B Soller3	2009	3,445	8,962		12,407
Former
G Clarke	2009	1,000	48,287	(49,287)
	2008	1,000			1,000
R Taylor	2009	191,023	30,511	(221,534)
	2008	104,345	86,678		191,023
R Burrows4	2008	38,927		(38,927)
R Johnston4	2008	58,933		(58,933)
Total	2009	304,503	201,034	(270,821)	234,716
Total	2008	291,042	103,876	(93,860)	301,058

1 Non Executive Directors' share allocations relating to retirement benefits are made in arrears on 1 January each year. Refer to Section 3b. of the Directors' Report for further details.

2 For Executive Directors and executives, relates to share entitlements under employee benefit vehicles.

3 Mr Soller became a Key Management Personnel during the year.

4 From 1 July 2007 the executive ceased to be key management personnel.

Key Management Personnel Compensation

The key management personnel compensation included in 'Employee Benefit Expenses' (refer to Note 5. 'Other Operating (Income) and Expenses') is as follows:

		Consolidated		Company
	June 2009 A\$000s	June 2008 A\$000s	June 2009 A\$000s	June 2008 A\$000s
Short term employee benefits	8,059	6,874	8,059	6,874
Post employment benefits	5,864	1,096	5,864	1,096
Share based payments	1,047	1,626	1,047	1,626
Other long term benefits	25	58	25	58
	14,995	9,654	14,995	9,654

Loans to Key Management Personnel

No loans were made to key management personnel or their related parties during the current year or prior year.

Other Transactions with Key Management Personnel

From time to time Directors and executives of the Company or its consolidated entities, or parties related to them, may purchase goods from the consolidated entity. These purchases are on terms and conditions no more favourable than those entered into by unrelated customers and are trivial or domestic in nature.

36. Non Key Management Personnel Related Party Information

Consolidated Entities

Interests held in consolidated entities and by Lend Lease Corporation Limited are set out in Note 13. 'Other Financial Assets' and Note 28. 'Consolidated Entities' to the financial statements.

Lend Lease Corporation Limited

Lend Lease Corporation Limited provides a wide range of corporate services to its consolidated entities. Corporate management fees, which are priced on an arm's length basis, are charged to these entities for these services (refer to Note 2. 'Revenue'). These services principally relate to:

• – Administration, company secretarial, accounting, legal, tax, insurance, information technology and public relations;
• – Human resources and employee services including the administration of salaries and superannuation, the provision of a defined benefit plan for a number of Australian employees (refer to Note 16. 'Defined Benefit Plan Asset') and share based payment plans (refer to Note 25. 'Reserves' and Note 34. 'Employee Benefits'); and
• – Finance and treasury services, which includes working capital facilities and long term financing. Interest is earned or incurred only on long term loans provided to or drawn with subsidiaries based on project specific risks and returns (refer to Note 2. 'Revenue' and Note 4. 'Finance Costs'). Outstanding balances arising from working capital facilities and long term financing are typically repayable on demand. In addition, financial guarantees are provided on the borrowings of subsidiaries (refer to Note 21. 'Other Financial Liabilities') for which guarantee fees are charged under normal terms and conditions (refer to Note 2. 'Revenue').

During the financial year Lend Lease Corporation Limited transferred its interest in Lend Lease Primelife Limited (LLP) to a consolidated entity at original cost.

Other transactions and outstanding balances with consolidated entities are disclosed in Note 2. 'Revenue', Note 3. 'Other Income', Note 5. 'Other Operating (Income) and Expenses', Note 9. 'Loans and Receivables', Note 16. 'Defined Benefit Plan Asset' and Note 18. 'Trade and Other Payables'.

Consolidated Entities

Transactions that occurred during the financial year between entities in the Lend Lease Group include:

• – Provision of project management, design services, construction management and engineering services to development projects;
• – Provision of payroll, transaction and management services;
• – Provision of investment management services;
• – Receipt and payment of superannuation contributions;
• – Reimbursements of expenses made on behalf of subsidiaries;
• – Loan advances and repayments between subsidiaries;
• – Premium payments and receipts for the Group's insurance policies; and
• Dividends received or due and receivable from subsidiaries.

Transactions between consolidated entities are priced on an arm's length basis.

Associates and Joint Venture Entities

Interests held in associates and joint venture entities by Lend Lease are set out in Note 11. 'Investments Accounted for Using the Equity Method' to the financial statements.

Transactions provided by the Lend Lease Group to its associates and joint venture entities principally relate to:

• – Retail business: Provision of retail property management, asset management and development services; and
• – Communities business: Development management services and the sale and purchase of development properties with Lend Lease managed funds. Also Lend Lease provides management services in relation to LLP and is the responsible entity to the trust of LLP.

In addition Lend Lease acquired the following redeemable convertible notes in December 2008 issued by LLP:

• – First Notes A\$13.4 million (22,333,333 notes convertible at \$0.60 per security);
• – Second Notes A\$25.0 million (100,000,000 notes convertible at \$0.25 per security); and
• RBD Convertible Notes A\$120.0 million (200,000,000 notes convertible at \$0.60 per security).

These notes have five year terms and are interest bearing at a coupon rate of 9.5% per annum. The notes are able to be converted to LLP stapled securities during certain periods within the five year term of the notes.

36. Non Key Management Personnel Related Party Information continued Associates and Joint Venture Entities continued

At 30 June 2009 these redeemable convertible notes are held at amortised cost and are reflected in Note 9. 'Loans and Receivables' together with embedded derivatives on these notes which are held at fair value. At 30 June 2009 the fair value of these options was A\$3.0 million.

During the year Lend Lease sold Retirement by Design villages and an aged care facility to LLP for consideration of A\$133.4 million of which A\$120.0 million was settled via issue of redeemable convertible notes.

Lend Lease provides long term loans on which interest is earned based upon project specific risks and returns. A subordinated non interest bearing loan has been provided to an associate and at 30 June 2009 the loan balance was A\$30.3 million (June 2008: A\$25.5 million).

• – Investment management: Provision of strategic investment advice, asset management and investment portfolio management services;
• – Project management and construction: Provision of construction, project management and design services; and
• – Public Private Partnerships business: Provision of construction, project management and design services, asset and facilities management services. Loan stock is also provided to projects on which interest is earned based upon project specific risks and returns.

Except as noted above, transactions and outstanding balances are typically on normal terms and conditions.

Revenue earned by Lend Lease during the year as a result of transactions with its associates and joint venture entities is as follows:

	June 2009 A\$m	June 2008 A\$m
Revenue
Provision of services1
Associates	307.0	98.7
Joint venture entities	778.8	680.2

1 Includes A\$5.9 million of Investment Management services (June 2008: A\$5.1 million).

During the year Lend Lease purchased development properties from an associate for A\$3.0 million.

Other transactions and outstanding balances with associates and joint venture entities have been disclosed in Note 2. 'Revenue', Note 3. 'Other Income', Note 4. 'Finance Costs', Note 5. 'Other Operating (Income) and Expenses', Note 9. 'Loans and Receivables', Note 18. 'Trade and Other Payables' and Note 32d. 'Commitments – Investments'.

Managed Funds

Lend Lease holds investments in a number of property funds for which it is also the fund manager. In addition to those property funds classified as associates and joint venture entities (refer to above and Note 11. 'Investments Accounted for Using the Equity Method'), Lend Lease holds interests in property funds which are classified as available for sale financial assets (refer to Note 13. 'Other Financial Assets').

Transactions between the Lend Lease Group and such property funds classified as available for sale are priced on an arm's length commercial basis. These transactions relate principally to:

• – Investment management: Provision of strategic investment advice, asset management and investment portfolio management;
• – Asset management: Provision of property management services, property portfolio advisory services, maintenance and insurances, strategic advice and management supervision services, administration, marketing and risk management services; and
• – Communities businesses: Provision of property capital works, design and construction services, development and refurbishment and the sale of development properties.

During the year the following transactions occurred:

	June 2009 A\$m	June 2008 A\$m
Revenue
Provision of services	60.3	64.5

37. Event Subsequent to Balance Date

Acquisition of Properties from Prime Retirement and Aged Care Property Trust (Prime Trust)

On 13 August 2009, Lend Lease entered into agreements to purchase nine Aged Care facilities and four Retirement Villages from Prime Trust for a total consideration of A\$76.7 million (excluding transaction costs). Settlement of four of the properties is subject to satisfaction of a number of conditions.

The Aged Care facilities and Retirement Villages will continue to be leased and managed by Lend Lease Primelife Limited following the change in ownership.

Directors' Declaration

In the opinion of the Directors of Lend Lease Corporation Limited ('the Company'):

• 1. The financial statements and notes and the remuneration disclosures contained in the Remuneration Report in the Directors' Report are in accordance with the Corporations Act 2001, including:
• a. Giving a true and fair view of the financial position of the Company and consolidated entity as at 30 June 2009 and of their performance for the financial year ended on that date; and
• b. Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.
• 1. The financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 1.1.
• 1. There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
• 1. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer and Acting Chief Financial Officer for the financial year ended 30 June 2009.

Signed in accordance with a resolution of the Directors:

D A Crawford S B McCann Chairman Managing Director Sydney, 20 August 2009