LENDLEASE GROUP — Annual Report 2013

Oct 10, 2013

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ASX Announcement

2013 Securityholder Review

11 October 2013

Copy of the 2013 Securityholder Review of Lend Lease is attached. It is also available online at www.lendlease.com. The 2013 Securityholder Review will be sent to securityholders who have elected to receive a copy.

The 2013 Lend Lease Annual General Meeting will be held in the Ballroom, Four Seasons Hotel, 199 George Street, Sydney NSW on Friday 15 November 2013 at 10:00am. Please note that the Notice of Meetings and Securityholder Review are being dispatched today, either electronically or via email depending on the elected method of delivery.

ENDS

For further information, please contact:

Investor Relations: Suzanne Evans Head of Investor Relations Tel: 02 9236 6464

Media: Vivienne Bower Group Head of Corporate Affairs Tel: 0431 487 025

Lend Lease Corporation Limited ABN 32 000 226 228 and Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

Telephone +61 2 9236 6111 Facsimile +61 2 9252 2192 www.lendlease.com

1

Level 4, 30 The Bond 30 Hickson Road Millers Point NSW 2000 Australia

LEND LEASE

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CONTENTS

• 1 Quick Facts & Highlights

• 2 Strategic Direction

• 4 About Lend Lease

• 6 Chairman’s Report

• 7 Chief Executive Officer’s Report

• 8 Strategy for Growth

• 10 Operating Incident & Injury Free

• 12 Review of Operations

• 28 Sustainability

• 32 Five Year Summaries

• 33 Looking Forward

• 34 Directors’ Profiles

• 35 Remuneration Summary

• 36 Glossary

• 37 Corporate Directory

Cover Image: Darling Quarter, Sydney, Australia Inside Cover Image: One57, New York, United States of America

All financial amounts within this report are in Australian Dollars unless otherwise specified.

Lend Lease Corporation Limited ABN 32 000 226 228 Incorporated in NSW Australia and Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

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Lend Lease Securityholder review 2013 1

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QUICk fACTS & HIgHLIgHTS

• n Over 16,500 employees

• n Estimated end value of development pipeline globally of $37.4 billion

• n Over 90 per cent of the major projects in our development pipeline have achieved or are targeting green certification

• n Circa 79,400 residential units backlog (land lots and built-form)

• n Construction backlog revenue circa $17 billion[1]

• n Funds under management $15 billion

• n $12.5 billion assets under management

• n $1.5 billion facilities management revenue backlog

• n Investments at market value of over $1.5 billion

• n Credit rating (Standard & Poor’s/Moody’s) of BBB-/Baa3 (stable)

• n Market capitalisation of $5.3 billion (as at 23 August 2013)

• 1 Includes Darling Harbour Live (formerly Sydney International Convention, Exhibition and Entertainment Precinct) – expected to reach financial close in FY14

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– expected to reach financial close in FY14 553.0
507.2
485.3
Operating Profit after Tax ($ million)
323.6
9 [[%]] increase 291.7
09 10 11 12 13
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9 [[%]] increase
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96.3
88.7
85.6
Operating Earnings per Security (cents)
67.4 65.1
9 [[%]] increase
09 10 11 12 13
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9 [[%]] increase
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Distribution per Security (cents)

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11 [%] increase
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41.0 42.0 38.0 35.0 32.1 09 10 11 12 13

Lend Lease Securityholder review 2013ECURITYHOLDER REVIEW

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STRATEgIC DIRECTION

Lend Lease is committed to becoming the leading international property and infrastructure group.

International

Our operations are centred around four regions.

Australia Asia Americas Europe, Middle East and Africa (EMEA)

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Lend Lease SECURITYHOLDER REVIEW 2013 3

Vision

To create the best places.

Leading

We will only operate in sectors and locations where we have core capabilities that enable us to establish a competitive value proposition. We believe this approach will create long term value by delivering the right risk/reward returns for our securityholders.

We aim to be one of the top three businesses in our chosen market segments and sectors through disciplined growth and diversification.

Sectors

Our key sectors are property and infrastructure.

We focus on the following property sub-sectors:

• n Commercial

• n Residential

• n Retirement

• n Retail

• n Industrial

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We focus on the following infrastructure sub-sectors:

• n Social e.g. health and education

• n Economic e.g. roads, bridges, rail and marine

Core lines of business

A key competitive advantage for Lend Lease is the integrated model. Our strong skills and experience across the property and infrastructure value chain allow us to provide integrated solutions across the following core lines of business:

• n Development

• n Construction

• n Investment Management

• n Services

• n Ownership

Lend Lease 4 Securityholder review 2013

AbOUT LEND LEASE

Lend Lease is a leading international property and infrastructure group with operations in Australia, Asia, the Americas, Europe and the Middle East.

Our vision is to create the best places by working collaboratively with our stakeholders to create positive legacies internationally. With over 50 years of property and infrastructure experience, our clients and investors can choose to leverage our strengths and expertise through all or part of the property and infrastructure value chain – Development, Construction, Investment Management, Services and Ownership.

Lend Lease creates vibrant residential communities, productive workspaces and retail destinations. We cover the full property and infrastructure spectrum – from funding and managing projects and properties, right through to designing, developing and constructing state of the art precincts, buildings and infrastructure, including hospitals, schools, roads and rail.

Lend Lease also owns and co-invests in both property and infrastructure alongside our investors and partners. Using a truly collaborative approach, we help clients and investors to maximise value and achieve innovative, sustainable outcomes.

Our vision is to create the best places

OUR VALUE CHAIN

fROm THE bIg PICTURE TO THE mINUTE DETAIL

DEVELOPMENT INVESTMENT MANAGEMENT CONSTRUCTION

PROPERTY

CORE VALUES RESPECT INTEgRITY INNOVATION COLLAbORATION ExCELLENCE TRUST

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Lend Lease
SECURITYHOLDER REVIEW 2013 5
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SAfETY fIRST

Lend Lease is committed to operating Incident & Injury Free wherever we have a presence. This is central to our business approach and is embedded in all of our decision making.

We believe the best places to live, work, and visit embrace our principles of safety, sustainability and diversity. When it comes to safety, our goal is to operate Incident & Injury Free.

To provide a strong operating framework for achieving our goal, we have developed an Environment, Health & Safety (EH&S) Management System applicable across all regions and Lend Lease businesses. Furthermore, we apply EH&S Global Minimum Requirements (GMRs) across all projects and assets internationally to ensure consistent standards are applied throughout Lend Lease.

This year we introduced our EH&S Passport, a practical and interactive online GMR training program to help all of our employees better understand their responsibilities around EH&S. In addition, specific EH&S behaviours were developed as a guide on how we can demonstrate positive EH&S behaviours across the entire supply chain so everyone involved can positively influence our safety culture, and demonstrate uncompromising leadership.

This year there were no fatalities reported across any Lend Lease controlled operations. This is a significant milestone for Lend Lease and demonstrates our ongoing commitment to our Incident & Injury Free goal. Unfortunately, some of the critical incidents recorded this year resulted in injuries. It is these incidents which provide a reminder that we must continue to do whatever is required to achieve an Incident & Injury Free environment.

SERVICES OWNERSHIP

INFRASTRUCTURE

Overall, 80 per cent of our operations around the world did not experience a critical incident this year.

SEE PAgES

10-11

Lend Lease 6 Securityholder review 2013

CHAIRmAN’S REPORT

Lend Lease has continued its strong performance in a challenging market. Our enviable development and construction pipeline and funds management platform underpin our position as a leading international property and infrastructure Group.

Solid financial performance

Lend Lease has delivered continuing profit growth for the financial year ended 30 June 2013, with Statutory Profit after Tax for the year of $551.6 million, up 10 per cent on the prior year. Operating Profit after Tax of $553.0 million was up nine per cent on the prior year (excluding net property revaluation losses of $1.4 million after tax). This result reflects the successful execution of our strategy and the benefits of our integrated property model. Our development business was a key driver of earnings growth this year, with contributions from the Barangaroo South urban regeneration project in Sydney; the sale of our stakes in the Greenwich Peninsula regeneration project in London and the Jem[®] development in Singapore; and a strong performance from our infrastructure development business.

Securityholders will receive a final distribution of 20.0 cents per security, unfranked. This brings the full year distribution to 42.0 cents per security, an increase of 11 per cent on financial year 2012.

financial strength

The Group retained a strong financial position through the year, with cash of $1,538.4 million as at 30 June 2013, gearing of 6.1 per cent and undrawn capacity of $1,099.4 million. The strength of our balance sheet and access to third party capital means we have the financial flexibility to fund our pipeline and invest in other opportunities, in line with our strategy.

Integrated property model

Our integrated model is a strong competitive advantage for Lend Lease. We have the capacity to source, plan, design, finance, structure and deliver large scale mixed use projects and to manage the complexities of multiple stakeholders. The ability to combine these skills and apply them within a strong social responsibility framework have been instrumental in securing major projects such as Barangaroo South and Darling Harbour Live (Australia) and Elephant & Castle (London).

Creating safe and sustainable places

Safety is our number one priority. We continue to make significant progress, reporting no fatalities on a Lend Lease controlled operation in the last financial year. This outcome demonstrates our uncompromising commitment and resolve to operate Incident & Injury Free.

We strive to create innovative and sustainable property and infrastructure solutions for our clients, investors and communities. Internationally, we are already benefiting from our commitment to creating sustainable solutions, with more than 90 per cent of the major projects in our development pipeline achieving or targeting green certification. This year our key city regeneration projects Barangaroo South (Sydney), Victoria Harbour (Melbourne) and Elephant & Castle (London) were recognised by the C40 Cities Climate Positive Development Program for their strategies and approach to achieving climate positive outcomes. We are very proud of this result, and will continue our leadership position in green development globally.

Our people

During the year a number of senior appointments were made, strengthening the operational capabilities of the Group and supporting our growth strategy. We have continued our focus on developing our leaders through our Leadership Development Programs, with a greater number of leaders attending in 2013.

New career and development tools were introduced for all employees to assist in supporting their development for future roles. We will continue to support the development of our people and will implement further programs in early 2014.

Our commitment to diversity is equally important. Lend Lease is committed to growing and sustaining a diverse and inclusive workplace and in the past year we have maintained our diversity target, with 19 per cent of senior executive positions held by women. Now in the second year of our Reconciliation Action Plan (RAP) we are working towards our goal to increase the representation of Aboriginal and Torres Strait Islander People in professional roles in Lend Lease. In 2013 we had

ten Indigenous university interns working across the business as well as 40 year 10 and 11 students who participated in our Careers for the Future program which aims to support teenagers in completing high school.

board composition

During the year there were changes to the composition of the Board. After more than six years as an Independent Director, Julie Hill retired in November 2012. Ms Hill brought great energy and insight to the Board, in particular with her efforts to promote the Group’s diversity agenda.

The Board Nomination Committee met numerous times this year to review Board composition and ensure it is comprised of individuals who, in combination, bring a mix of expertise, skills, experience and diversity to contribute to the oversight and effective corporate governance at Lend Lease. To that end, I was pleased to announce the appointment of Nicola Wakefield Evans to the Lend Lease Board, effective 1 September 2013. Ms Wakefield Evans is well known as one of the Asian regions leading mergers and acquisitions, corporate governance and resources and energy lawyers and brings significant experience to the Board.

Outlook

In the last few years we have embarked on a clear strategy, building an enviable pipeline of integrated project opportunities and creating a point of difference for Lend Lease. We have good visibility of a strong earnings growth trajectory over the next three years and are targeting a return on equity over the medium term of 15 per cent. Despite challenging macro-economic conditions, we believe Lend Lease is well placed for 2014 and beyond.

My thanks to fellow Board members, as well as the Lend Lease leadership team and all employees, whose dedicated efforts throughout the year have seen us grow our returns for securityholders and put us clearly on a path to achieving our goals.

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David Crawford AO Chairman

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Lend Lease SECURITYHOLDER REVIEW 2013 7

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CHIEf ExECUTIVE OffICER’S REPORT

We have established a global pipeline of projects and built a substantial backlog as part of our strategy to establish a balanced and diversified portfolio. Our focus is now on the successful delivery of these projects, which will deliver earnings and drive growth over the next three years.

Our people

2013 has been another strong year for Lend Lease. During the year we repositioned our business, delivered strong financial results from our diversified businesses and increased our earnings visibility.

Earnings visibility over the next three years

To create the best places we need the best people. We have made significant investment in focusing on the development and training of both our leaders and front line workforce. We want to ensure our people have the right skills to be able to deliver for today and the future. This year we continued to build upon the strength of our leadership team across our development, construction and investment management businesses with several senior appointments.

We have a significant pipeline across our business, with an estimated end value development pipeline of $37.4 billion, construction backlog revenue of $17.2 billion and funds under management of $15 billion. In 2014, we will commence the production of 11 apartment towers on sites in Australia and the United Kingdom already achieving pre-sales targets and expecting to deliver profits in fiscal years 2015 and 2016.

Repositioning of the business

Earlier in the year we restructured our Australia operations by separating into two businesses, Construction and Infrastructure and Property. Australia now accounts for more than two thirds of our earnings and the more focused structure delivers the support required given the significant scale of the operations.

Outlook

Our integrated model – a competitive advantage

Lend Lease is well positioned with a significant development and construction backlog, a strong balance sheet and access to third party capital to assist funding the delivery of the pipeline. Our focus now needs to be high quality execution of that pipeline. Our employees are committed to driving securityholders value by delivering the best places for our clients, investors, partners and communities.

We have made considerable progress in delivering on our strategy in 2013. We have created a differentiated business through our integrated property model and have established our position as a leading international property and infrastructure Group. Our $6 billion Barangaroo South project in Sydney is a great example of our integrated model at work and is already delivering profits to the Group.

In some sectors in the second half of the year, we took the opportunity to further reposition our businesses in the United Kingdom, the Americas and Australia. This included the transition of our four separate construction operations of Abigroup, Baulderstone, Project Management & Construction and Infrastructure Services into three sector based businesses focused on building, engineering and construction services, which completed on 1 August 2013.

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Safety

As the Chairman noted, safety is our number one priority. We take an uncompromising approach to achieving our goal of operating Incident & Injury Free. It is crucial all of our people have the right systems, support and information to deliver safe outcomes and positively influence our safety culture across the entire supply chain. This includes complying with our Global Minimum Requirements which prescribe physical and operational safety standards for all business activities.

Diversified earnings

Our diversified platform continues to support the Group achieving our financial targets. The Group delivered an Operating Profit after Tax of $553 million, an earnings increase of nine per cent on the prior year. Our Development business was a key driver of the Group’s earnings, through the successful sale of our interests in the Greenwich Project in London and Jem[®] in Singapore, as well as the first profits to emerge from Barangaroo South in Sydney. Other drivers included our Infrastructure Development business, which closed three large Public Private Partnership deals in Australia and one in America during the year, increasing their contribution to Group profit, and increased earnings from our Americas business.

Steve mcCann Group Chief Executive Officer and Managing Director

Lend Lease 8 Securityholder review 2013ECURITYHOLDER REVIEW

Urban Regeneration

• n By 2030, circa 60 per cent of the world’s population will live in urban areas

• n Increasing urban density is creating strong demand for urban regeneration

• n The group has over $22 billion (end value) in urban regeneration projects across the globe

funds growth

Ageing Population

• n Australian population aged 65+ will grow by almost 70 per cent over the next 15 years

• n Lend Lease is a leading owner and manager of senior living housing in Australia

Sustainability

• n Governments are responding to climate concerns by supporting sustainability initiatives

• n Increased energy costs are creating demand for alternative energy sources and energy efficient solutions

• n Lend Lease is a recognised market leader in creating and delivering the next generation of sustainable property and infrastructure solutions

• n Institutional capital will continue to increase, fuelling demand for quality product and managers of investments

• n Lend Lease has one of the largest wholesale investment management businesses in Australia and global funds under management of $15 billion at 30 June 2013

Infrastructure

• n Urbanisation and resources growth is driving strong demand for social and economic infrastructure

• n Lend Lease is leveraging our strong market position in infrastructure to pursue growth in key sectors

Lend Lease Securityholder review 2013ECURITYHOLDER REVIEW 9

Restore

A focused core business

• n Right structure – Develop an organisational structure that mirrors strategy and creates a more integrated product and service offering

• n Cost out – Reduce overheads through the right structure and improvements in efficiencies

• n Drive efficiency – Upgrade systems and processes globally and align support functions to deliver efficient and cost effective outcomes

• n Capital management – Create an efficient capital structure to fund development pipeline and improve portfolio management through focus on investment opportunities within core capabilities across our integrated business model

Build

Disciplined expansion

To extract maximum value from the unique combination of businesses that make up the group’s portfolio

• n Reshape portfolio – Align portfolio to strategy so we focus on core geographies and sectors where we can operate safely and profitably. This includes divestment of non-core assets

• n grow platforms – Capitalise on key growth trends

• n Operational excellence – Best practice in policies, procedures and operating disciplines

• n Invest in people – Talent management to ensure we attract, retain and motivate talented people

Our achievements

• n Capital recycling of $2.1 billion since 2009, including divestment of our non-core Aged Care business for $271.7 million

• n Grew and commenced delivery of our significant international development pipeline including Barangaroo South and Elephant & Castle

• n Continued investment in growing our platforms with a focus on operational excellence

• n Increased leadership bench strength and implemented new performance management framework

Lead

We are fulfilling our vision and strategic direction by creating the best places through our pipeline of integrated property and infrastructure projects.

Our achievements

World class property and infrastructure solutions

We have delivered world class safety, sustainability and design outcomes, including:

n Zero fatalities reported this year across Lend Lease controlled operations globally;

n Forté, the world’s tallest residential timber building;

Our aspirations

We will continue to strive to create safe, sustainable and innovative solutions that respond to the evolution of our markets and our customers’ needs.

n Maintaining our listing on the Dow Jones World Sustainability index since 2001; and,

n Creating highly awarded property and infrastructure assets around the globe.

Portfolio of large-scale projects

Estimated end value of our global development pipeline is $37.4 billion, the largest in our company’s history. Despite tougher trading conditions in the Australian construction market in the last 12 months, our construction backlog revenue has risen to $17.2 billion and our funds under management has risen to $15 billion, reflecting the strength of our integrated model.

financial strength

Our strong balance sheet, with liquidity of $2.6 billion (including cash of $1.5 billion), and access to third party capital raising $3.3 billion since 30 June 2010, means we have the financial capacity to fund our pipeline and invest in other opportunities in line with our strategy.

Our people

We believe that to create the best places we need the best people. We have invested in new career and development tools to support our people. Lend Lease’s Foundation continues to create initiatives that enrich the lives of employees and their families; and aid charities and communities in which employees have an involvement.

We will safely execute pipeline and optimise profitability, continue to identify and win major integrated projects, and reinforce our integrated capability across our core regions.

We will continue to maintain an investment grade rating, and expand our Investment Management platform in our core regions in both the property and infrastructure sectors.

We will foster a culture and an environment that embraces and respects difference, and where we attract, develop and retain the best people.

Lend Lease 10 Securityholder review 2013

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OPERATINg INCIDENT & INJURY fREE

We believe that the best places are the safest places, which is why we take an uncompromising approach to achieving our goal of operating Incident & Injury Free.

Revising and

Leadership focus

embedding our systems

Positive achievements in our EH&S performance relies on effective leadership and uncompromising commitment. This commitment requires all of our employees, at all levels, to be accountable for intervening or problem solving, not only when critical incidents occur, but also when EH&S risk or compliance challenges become evident on any of our operations. By applying the lessons learnt from these scenarios across our portfolio we drive continuous improvement. To increase visibility of our approach to safety leadership, our global EH&S leadership team meet quarterly to assess performance drive key initiatives though Lend Lease.

In April 2012 we launched a revised Environment, Health & Safety (EH&S) management system and a reinforced set of Global Minimum Requirements (GMRs). Our revised management system provides a guide on EH&S aligned to globally recognised standards and is applicable to every Lend Lease operation internationally. All of our businesses and operations self-report against GMR compliance (including high risk activities) and are independently assessed to drive continuous improvement.

New incident and compliance reporting system

EH&S Performance

This year we embedded a new online incident and compliance reporting platform for our people to record EH&S events and observations across all of our operations, and to monitor and record compliance against our GMRs. This new reporting platform is used by all Lend Lease businesses providing a single source of EH&S performance information. This provides us with the capability to undertake detailed analysis of our EH&S performance and monitor both lead and lagging indicators more effectively.

This year no fatalities were reported across any Lend Lease operation globally. This is a significant milestone in our commitment to operate Incident & Injury Free. We did, however record critical incidents resulting in injury. These incidents are reviewed and relevant training is provided to address the cause and retain an undiminishing focus on continuous improvement.

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Through the introduction of our incident and compliance reporting platform, we re-defined our definition of what we term a ‘critical incident’. Critical incidents are events where EH&S controls have not been adequately deployed resulting in a potential or actual serious injury, property or environmental damage. This category now also captures ‘near miss’ incidents where a serious outcome has been narrowly avoided. There were 255 critical incidents this year recorded across Group. The increase in this number, compared to previous years, is due to the redefining of a critical incident and the ability to report more accurately through our new incident and compliance reporting platform.

EH&S Passport

We delivered a new interactive eLearning program, called the EH&S Passport, for all our employees based on our revised and updated GMRs. Over 10,000 employees have completed EH&S Passport training for either the Construction GMR or Asset GMR learning streams. This program has been an outstanding success with positive recognition from our employees on the highly interactive and practical format, improving their proficiency levels.

The EH&S Passport has also received a number of industry awards. We will continue to develop further learning modules for our employees whilst sharing our approach with our project and supply chain partners.

Lend Lease SECURITYHOLDER REVIEW 2013 11

fIRST fATALITY fREE YEAR

EACH mONTH OVER 70 PER CENT Of OUR OPERATIONS HAVE NO INCIDENTS TO REPORT

since the collection of reliable EH&S data commenced in 2000

OVER 10,000 EmPLOYEES have completed EH&S Passport (3.5 hours of interactive online GMR learning) 80[%] of operations have not had a critical incident this year

Lend Lease

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SECURITYHOLDER REVIEW 2013

REVIEW Of OPERATIONS

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Lend Lease Securityholder review 2013

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AT A gLANCE

JULY 2012

Launched a new commercial wholesale open ended property trust, securing $2 billion of commitments for the funding and development of the first two commercial towers at Barangaroo South.

Selected as part of the successful Exemplar Health consortium by Queensland Health to deliver the $1.8 billion Sunshine Coast University Hospital, a new tertiary hospital to be built at Kawana in Queensland, Australia.

AUgUST 2012

Entered exclusive agreement with Crown Limited for the development of a world class international hotel resort at Barangaroo South.

Announced appointment of Mr Simon Hipperson as Chief Executive Officer, Europe, Middle East and Africa.

SEPTEmbER 2012

Included in the 2012 Dow Jones World Sustainability Index recognising the Group’s leading position in sustainability.

Celebrated the completion of Forté, the world’s tallest timber apartment building in Melbourne’s Victoria Harbour, Australia.

Appointed to design and build the circa $116 million (£71 million) Specialist Emergency Care Hospital at Cramlington, Northumberland, by the Northumbria Healthcare NHS Foundation Trust.

OCTObER 2012

Selected as preferred bidder by Azienda ULSS 9 Treviso (Local Unit Socio Sanitaria company 9) to lead a consortium to design and build a circa $282 million (€200 million) hospital in Treviso, Italy, and provide facility management services over the 21 year concession period.

NOVEmbER 2012

Announced appointment of Ms Kylie Rampa as Managing Director for Lend Lease’s Investment Management business in Australia.

Awarded circa $211 million design and construction contract for the redevelopment of Lakeside Joondalup Shopping City in Perth, Western Australia; jointly owned by the Lend Lease managed Australian Prime Property Fund Retail, and an institutional investment partner.

Awarded circa $193 million contract by Cbus Property to build Melbourne’s new City West Police Complex in Victoria, Australia.

Jem[®] development project in Singapore awarded Best Innovative Green Building Gold award at MIPIM Asia Awards 2012; highlighting outstanding developments in the Asia Pacific region for their innovative, technical, environmental and architectural qualities.

DECEmbER 2012

Selected as preferred proponent by the New South Wales Government to deliver the Darling Harbour Live, as part of the Destination Sydney Darling Harbour Live consortium consisting of Lend Lease, HOSTPLUS, Capella Capital, AEG Ogden and Spotless.

Selected as the preferred tenderer by the Roads and Maritime Services to design and construct the Pacific Highway Nambucca to Urunga Upgrade, a 20 kilometre dual carriageway, including bridges, on the Pacific Highway between Nambucca Heads and Urunga in New South Wales, Australia.

JANUARY 2013

Secured a circa $264 million (£170 million) construction contract with Land Securities for two new buildings, The Zig Zag Building and Kings Gate on the site of the former Kingsgate House, in central London.

Announced appointment of Ms Karen Pedersen as the new Group General Counsel.

Granted planning permission by Southwark Council for the master plan for Elephant & Castle in Central London. The approval of the master plan was a significant milestone in the delivery of the circa $2.5 billion (£1.5 billion) regeneration of Elephant & Castle.

Completed work on the Peninsula Link freeway project, a 27 kilometre dual carriage motorway between the EastLink toll road in Melbourne’s east and the Mornington Peninsula Freeway at Mt Martha in Victoria, Australia.

Darling Harbour Live, Sydney, Australia Image: HASSELL + Populous

Lend Lease SECURITYHOLDER REVIEW 2013

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fEbRUARY 2013

mAY 2013

Appointed principal contractor to refurbish Stage 6 of BBC Television Centre, at the White City site in West London, United Kingdom.

Signed the project development agreement with the Metropolitan Redevelopment Authority for the $1 billion Waterbank urban regeneration project in Perth, Australia. The formal signing of this agreement followed Lend Lease’s selection in November 2011 as the preferred developer.

Financial close reached on Group C, the third phase of the US Department of the Army’s Privatization of Army Lodging program, total construction value of circa $352 million (US$367 million).

Financial close reached with the Victorian State Government to enter into a $630 million Public Private Partnership to design, construct, maintain and finance the New Bendigo Hospital in Victoria, Australia.

Awarded the Green Advocate of the Year Award, and Universal Design Mark Award for Jem[®] , the mixed-use development in Jurong Gateway, Singapore.

Sale of the Aged Care business for $271.7 million to Australian Aged Care Partners.

The $500 million Darling Quarter and Commonwealth Bank Place precinct in Sydney received five awards at the 2013 Property Council of Australia (PCA)/Rider Levett Bucknall (RLB) Innovation and Excellence Awards including the property industry’s coveted ‘Gold Logie’ for the PCA/RLB Australian Development of the Year. The new Royal Children’s Hospital in Victoria also received the best public building of 2013.

JUNE 2013

Sale of 25 per cent equity interest in Jem[®] to Lend Lease Jem Partners Fund for approximately $189 million (circa S$227 million).

APRIL 2013

Preferred bidder to deliver the New Bendigo Hospital in Victoria, Australia. Lend Lease is part of the Exemplar Health consortium which also includes Capella Capital, Siemens and Spotless, working with the Victorian State Government in a $630 million Public Private Partnership to design, construct, maintain and finance the project.

Announced transition from our four separate construction operations of Abigroup, Baulderstone, Project Management & Construction and Infrastructure Services into three sector based businesses focused on building, engineering and construction services. This became effective on 1 August 2013.

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Lend Lease 16 Securityholder review 2013

AUSTRALIA

Lend Lease achieved a solid profit result in the Australia region, with an 18 per cent increase in Operating Profit After Tax to $506.6 million.

During the year we have made progress on our significant development pipeline, secured a number of major projects and grown funds under management while continuing to invest via our Public Private Partnerships (PPP) model. Our construction and infrastructure operations provide project management, engineering and construction services for clients, and also arranges, manages and invests in PPP projects.

Urban Regeneration

During the year we made solid progress on our major urban regeneration projects around Australia. A number of milestones were achieved at Barangaroo South including our first profit contribution, the signing of an exclusive agreement with Crown Limited for the development of an international hotel and receiving planning approval for the first two residential buildings post year end in July 2013.

At Melbourne’s Victoria Harbour we continued to advance the master plan, completing the world’s tallest residential timber building, Forté, as well as the Aurecon Centre commercial building, Lifestyle Working Collins Street commercial strata building and residential apartment building, EXO.

Construction continued at the RNA Showgrounds redevelopment project in Queensland, with the completion of the 22,000 square metre Royal International Convention Centre. The first residential apartment development, The Green, was launched and construction is due to commence in late 2013.

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financial Highlights fY13 fY12 % Change
Operating Profit After Tax ($ million) 506.6 429.9 18
Development pipeline:
– Backlog Residential (units) 69,631 70,311 (1)
– Commercial (sqm/000s) 5,552 5,814 (5)
– Backlog Retirement Village units 1,247 1,270 (2)
– Aged Care beds with licences [1] – 583 (100)
Infrastructure Development:
– Number of projects 5 1 400
Construction pipeline:
– New work secured revenue ($ billion) 7.7 8.2 (6)
– Backlog revenue ($ billion) 9.6 9.3 3
Funds under management ($ billion) 10.3 8.8 17
Assets under management ($ billion) 5.3 5.2 2
----- End of picture text -----

1 The Group sold the Aged Care business during the year.

In Western Australia, we executed the development agreement for the $1 billion Waterbank mixed-use redevelopment project, including 600 residential dwellings, on the banks of Perth’s Swan River, and work on the design and planning continues ahead of the expected start of construction in 2014.

Artist impression only, accurate as of September 2013. Subject to planning approval.

Adding to the strength of our pipeline in urban regeneration, the Darling Harbour Live consortium and Lend Lease were selected by the New South Wales Government to redevelop a 20 hectare area of Darling Harbour to create a revitalised convention, exhibition and entertainment hub.

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Darling Harbour Live, New South Wales

Client: NSW Government, Infrastructure NSW and Sydney Harbour Foreshore Authority

Value: Public Private Partnership circa $1.0 billion capital cost, Project Development Agreement over $1.5 billion

Period: 2012 – early 2020

In conjunction with the NSW Government, the Darling Harbour Live (DHL) consortium and Lend Lease are redeveloping a 20 hectare area of Darling Harbour to create a revitalised convention, exhibition and entertainment hub.

In a Public Private Partnership agreement with Infrastructure NSW and Sydney Harbour Foreshore Authority, the DHL consortium consisting of Lend Lease, Capella Capital, HOSTPLUS, AEG Ogden and Spotless, will design, construct, finance, maintain and operate new world-class convention, exhibition and entertainment facilities that are planned to open in late 2016.

Within the same project, Lend Lease is also developing and constructing a new residential and commercial district. This will include circa 1,400 residential apartments, up to 1,000 student accommodation beds, 22,000 square metres of commercial and retail space, an enhanced public realm and improved transportation connections. Lend Lease is also developing a hotel in the north of Darling Harbour.

This project is a further example of Lend Lease’s integrated model in securing a landmark urban regeneration and infrastructure development opportunity. Contractual close was reached in March 2013, with financial close expected in 2014.

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Barangaroo South, New South Wales

Client: New South Wales Government Value: $6 billion (on completion) Period: 2010 – 2025

Lend Lease is working in partnership with the NSW Government to transform this former container terminal into Sydney’s new waterfront financial district. At its heart sit International Towers Sydney, which will be one of Australia’s most advanced and most sustainable high rise workplaces.

In addition to the three commercial towers, which will provide space for 23,000 office workers, the plans for Barangaroo South include 800 to 1,000 residential apartments, up to 100 retail outlets, including shops, restaurants and cafes, a landmark luxury hotel, new cultural facilities and public spaces, including a waterfront promenade along the entire foreshore.

Considerable progress was made across the project during the year, commencing with securing $2 billion of equity financing for the first two commercial towers. Construction of the shared basement and commercial towers is well underway, with the first tower due for completion in 2015. Progress has also been made with Crown Limited to develop a luxury six-star resort hotel at Barangaroo South. The first two residential buildings, Anadara and Alexander, received planning approval in July 2013, and sold out at launch.

Lend Lease 18 Securityholder review 2013

“Our substantial development pipeline of $31.1 billion, our residential communities backlog of over 55,000 land lots combined with more than $10 billion in funds under management highlights the scale and diversity of our Property business in Australia. Looking ahead, our focus is on driving investment performance for the business and for our partners, and leveraging our end to end integrated model to successfully deliver our extensive project pipeline.”

Tarun gupta, Chief Executive Officer – Property, Australia

Development

While consumer sentiment fluctuated during the year impacting the outlook for the housing market, communities’ projects in growth corridors traded well. The Yarrabilba project in Queensland achieved a strong first full year of trading. In addition, the new communities of Alkimos and Coolbellup in Western Australia, Stoneleigh Reserve in Queensland, and Jordan Springs in NSW, contributed to an 11 per cent increase in settlements compared to the same reporting period in 2012.

Responding to market demand for smaller, more affordable apartments, pre-sales in the apartments business increased by 30 per cent due to successful pre-sales of Studio Nine, in Richmond, Victoria; The Green at RNA Showgrounds in Brisbane; and Concavo, at Victoria Harbour.

Investment management

Funds under management grew to $10.3 billion, up 17 per cent on last year, with the launch of a new wholesale investment vehicle, Lend Lease International Towers Sydney Trust, securing $2 billion of equity commitments for the funding and development of the first two commercial towers at Barangaroo South. With 16 retail assets under management and a strong retail development pipeline including Lakeside Joondalup Shopping City, Craigieburn Central and Barangaroo South, there are good opportunities to further enhance trading performance and drive investor returns.

The Aged Care business was sold for $271.7 million to Australian Aged Care Partners. In the retirement living business, Isabella Gardens in Canberra was the first Australian retirement living village to achieve the Gold Liveable Housing Design Quality Mark from Liveable Housing Australia, reflecting our ability to respond to the lifestyle needs of older Australians.

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Lakeside Joondalup Shopping City, Western Australia

Client: Australian Prime Property Fund Retail and an institutional investment partner

Value: circa $300 million Period: 2012 – 2014

Lakeside Joondalup Shopping City is undergoing a circa $300 million redevelopment to become, on completion, one of the biggest shopping centres in Western Australia.

Jointly owned by the Lend Lease managed Australian Prime Property Fund Retail (APPF Retail) and an institutional investment partner, the redevelopment illustrates the capabilities of Lend Lease’s integrated offering in the retail sector. The project is being delivered by Lend Lease’s development, construction and infrastructure businesses, and the retail asset management business will continue to manage the centre upon completion in late 2014.

The redevelopment will transform the 71,000 square metre regional shopping centre to a major regional shopping centre of 96,000 square metres. The expansion will include a new two-level, 12,000 square metre Myer department store, a new casual dining precinct, approximately 95 national and local retailers and an additional 400 car spaces.

Lend Lease has played a major role in the successful expansion of other APPF Retail owned assets, including Caneland Central in Mackay, as well as Craigieburn Central, currently under construction in Melbourne.

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Jordan Springs, New South Wales

Value: $600 million Period: 2010 – 2020

Jordan Springs is a vibrant new residential community surrounded by 900-hectares of regional parkland in the Penrith Valley of New South Wales. The project was launched off the plan in 2010 and when complete in 2020 it will feature up to 2,450 homes for around 6,500 residents.

Jordan Springs is designed to meet the high demand for housing in Sydney’s greater west by delivering a range of affordable land and housing options. The new community will benefit from a wide variety of amenities upon completion, including a Village Centre with speciality shops (due to open in late 2013), an education precinct, Community Resource Hub and 17 hectares of parklands and open space.

Jordan Springs is also delivering much needed infrastructure to the growing region. Demonstrating the core capabilities of Lend Lease’s integrated model, the communities business is leveraging our engineering experience, to complete a road upgrade project at the site of approximately 1.9 kilometres.

Lend Lease 20 Securityholder review 2013

“Creating a unified construction and infrastructure business brings with it a number of benefits. We are now a more capable, efficient and competitive business in each of our chosen sectors; building, engineering and construction services. Coming together under the Lend Lease master brand is an important milestone that enhances our financial strength and delivery capability.” David Saxelby, Chief Executive Officer – Construction & Infrastructure, Australia

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Construction

Outlook

The construction business finalised the integration of the Abigroup, Baulderstone, Project Management & Construction and Infrastructure Services businesses post year end, on 1 August 2013. They now operate as sector based businesses under the Lend Lease brand, with one business in each of the building, engineering and construction services sectors. The combined strength of these businesses leverages our core capabilities, skills and experience and differentiates our position in the construction and infrastructure market.

The construction business achieved backlog revenue of $9.6 billion from a mix of building and engineering projects including the University of Technology Sydney Faculty of Engineering and Information Technology and Dr Chau Chak Wing buildings, Queensland Children’s Hospital, Hunter Expressway, the M5 West Widening, Victoria’s Regional Rail link project, the Adelaide Convention Centre and the Adelaide Oval redevelopment.

We remain focused on the successful execution of our major urban regeneration and residential projects pipeline, growing funds under management and continuing to have a balanced and diversified portfolio across the region. We will also leverage the strength of our new operating businesses in the building, engineering and construction services sectors to create a leading construction business.

Infrastructure Development

The year saw continued investment via the Public Private Partnerships model. Operating Profit After Tax increased to $41.1 million, within our Infrastructure Development business principally from three projects – Sunshine Coast University Hospital, Eastern Goldfields Regional Prison and the New Bendigo Hospital.

New projects secured in the full year period to June 2013 include Sunshine Coast University Hospital project, New Bendigo Hospital, Lakeside Joondalup shopping centre redevelopment, City West Police Complex, Pacific Highway Nambucca Heads to Urunga upgrade and the second commercial tower at Barangaroo South.

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Sunshine Coast University Hospital Project, Queensland

Client: Queensland Health Value: $1.8 billion[1] Period: 2012 – 2016 (Stage one)

The Sunshine Coast University Hospital project is being developed as part of a 20 hectare integrated health campus at Kawana, in Queensland, to meet growing demand for hospital services on the Sunshine Coast.

It is Queensland’s first public hospital Public Private Partnership and the Exemplar Health consortium is undertaking the design, build, financing, commissioning and maintenance for 25 years. As part of the consortium, Lend Lease is performing the design and construction, and Capella Capital, Lend Lease’s infrastructure development business, is financial adviser and development and asset manager. Lend Lease is also investing 50 per cent of the equity in the project vehicle.

The new public tertiary teaching hospital will open with about 450 beds in late 2016 (stage one) and grow to 738 beds by 2021, providing a range of new and expanded hospital services. Construction began in October 2012 and the works include new hospital buildings, a Skills Academic and Research Centre, mental health unit, 3,500 car spaces, parklands and supporting infrastructure.

Aiming to deliver best practice in sustainable design principles, construction and operation, the project is creating significant employment opportunities during and after construction. Staff and the community are actively involved in its development to ensure the state-of-the-art hospital meets the needs of the region.

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1 Project approved value

Hunter Expressway – Western Construction Section, New South Wales

Client: Roads and Maritime Services Value: $550 million Period: 2011 – 2014

The Hunter Expressway project is the largest road infrastructure project currently under construction in NSW. Linking the M1 Pacific Motorway (formerly F3 Freeway) at Seahampton with the New England Highway, near Branxton, the new Hunter Expressway will provide a major new arterial route between Newcastle and the Upper Hunter.

The new 40 kilometre four lane expressway is being constructed under two separate contracts, with our engineering business delivering the 27 kilometre western section (from Kurri Kurri to Branxton).

The project includes the construction of a 27 kilometre two lane dual carriageway, four interchanges, 22 bridges, five main carriageway twin bridges, in addition to eight transverse bridges over the highway. Distinguished by the absence of central piers, the bridge structures will form key signature markers along the route.

The road works have been designed to minimise the footprint of clearing and disturbance to native vegetation surrounding the project. Fauna fences and underpasses, access roads, drainage structures, landscaping and rest areas are also being delivered.

The Hunter Expressway is scheduled to open to traffic by the end of 2013, weather permitting. It will significantly improve the efficiency of the national road network and reinforces Lend Lease’s strong presence in the roads sector.

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ASIA

“Strong economic fundamentals continue in Asia. We have recycled capital out of completed developments and continue to pursue new mixed-use or integrated development opportunities in the region. We will continue to invest in higher yielding development opportunities in our key markets of Singapore, Malaysia and Japan.” Rod Leaver, Chief Executive Officer, Asia

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financial Highlights fY13 fY12 % Change
Operating Profit after Tax ($ million) 112.6 106.2 6
Development pipeline:
– Commercial (sqm/000s) 32 109 (71)
Construction pipeline:
– New work secured revenue ($ million) 414.2 665.7 (38)
– Backlog revenue ($ million) 475.7 692.7 (31)
Funds Under Management ($ billion) 3.3 2.2 50
Assets under management ($ billion) 3.5 1.9 84
----- End of picture text -----

Lend Lease has achieved a strong result in Asia with an Operating Profit After Tax of $112.6 million. During the year we secured two new projects in Asia within the education sector including construction of the new Leadership Development Centre for INSEAD; while we continue to complete Phase 2 of the Stamford American International School in Singapore. In Japan, we have maintained our position as one of the leading foreign contractors in the market with ongoing telecommunication network rollouts across the country.

We will also continue to look for growth opportunities in China. Our project management and construction business will continue to leverage our leadership position in the education, life sciences and telecommunications sectors; and we will look to strengthen our market position in Malaysia and Japan.

In June this year, Lend Lease also successfully launched the Lend Lease Jem Partners Fund which was established to acquire Lend Lease’s 25 per cent equity interest in Jem[®] .

On 15 June 2013, we were pleased to announce the opening of Jem[®] , a suburban retail and office property in Singapore. Jem[®] was fully leased ahead of its first day of trade, housing the first suburban outlets of several international brands, including H&M, Books Kinokuniya and Victoria’s Secret. The commercial component, also fully leased, is due for completion in late 2013. This development received the Gold award in the ‘Best Innovative Green Building’ category at the MIPIM Asia Awards, recognising outstanding developments in the Asia Pacific region for innovative, technical, environmental and architectural qualities. Jem[®] is also the first mixed-use development to have been awarded Green Mark Platinum Version 4 by the Building and Construction Authority of Singapore, the highest accolade for sustainable buildings.

Outlook

We expect the strong economic fundamentals across our key markets in Asia to continue. We will continue to execute the successful delivery of Jem[®] ’s commercial component and capitalise on our integrated capabilities. We will look for additional retail and mixeduse opportunities with joint venture partners or in partnership with our managed funds in key markets including Singapore, Malaysia and Japan.

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Mobile Network Build and Fast Pole Telecommunications Towers

Client: SoftBank Period: Since 2002

SoftBank is one of the top three mobile network operators in Japan, and represents one of Lend Lease’s most strategically important relationships. The relationship was first formed in 2002, when Lend Lease was approached to provide full project management services, from site acquisition to operational ‘in-service’ capability, on a nationwide deployment of 3G base stations. On this project, Lend Lease succeeded in achieving a considerable project cost reduction and laid a solid foundation for an ongoing and rewarding relationship that continues to exist today.

From 2003 to 2006, Lend Lease were engaged on a number of projects including 3G base station deployment, as well as thousands of new site builds. In October 2006, Lend Lease assisted the Operator in achieving its goal of providing high quality coverage to residential and high mobility areas. In 2008, Lend Lease was awarded another contract to support SoftBank as a Project Manager to construct new base stations in residential areas to enhance SoftBank’s 3G network coverage.

Today Lend Lease is active in providing project management services for SoftBank’s 1.5GHz band and 900MHz projects across the country, and is working to implement SoftBank’s large scale Long Term Evolution network. Additionally, SoftBank represents one of the largest customers for Lend Lease’s internally developed ‘Fast Pole’ product, an innovative tower design which reduces build time and cost for network operators.

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INSEAD Global Leadership Development Centre

Client: INSEAD Value: $32 million Period: 2013 – 2014

Lend Lease has commenced construction on the new Leadership Development Centre for INSEAD in Singapore, the Asia campus of one of the world’s leading international business schools. This new centre marks ‘phase three’ in the school’s expansion and is set to create an unparalleled business innovation hub in Asia, offering a deeper and broader range of management programs and allowing for greater collaboration with top global companies seeking to establish professional development centres for their employees in Asia.

In 2005 Lend Lease successfully delivered phase 2a of the campus expansion including design, development and construction, and has now been awarded phase three. We were recognised for our exceptional attention to detail, uncompromising commitment to health and safety and delivering a design based on the needs of the people who use it.

Lend Lease is committed to delivering the next generation of sustainable property solutions, alongside INSEAD. This development achieved Singapore’s highest accolade for sustainable buildings, the Building and Construction Authority Green Mark Platinum Version 4 rating.

Lend Lease 24 Securityholder review 2013

AmERICAS

“In the Americas, our project management and construction activities have seen a sustained recovery in our core markets, with our healthcare development operations gaining momentum. Additionally, our privatisation initiatives within the Department of Defense continue to deliver positive results, reaching financial close of the third phase of the US Privatization of Army Lodging program.” Robert A. mcNamara, Chief Executive Officer, Americas

The Americas region of Lend Lease has achieved an Operating Profit After Tax of $53.7 million, an increase of 49 per cent from the corresponding year, underpinned by increased earnings in our construction and infrastructure development businesses. Prior corresponding year earnings were negatively impacted by the costs associated with the New York investigation into billing practices.

Reflecting the improving market conditions in our core geographic markets of New York and Chicago, new work secured for our construction business increased to $3.5 billion, and backlog revenue increased to $4.9 billion. Additionally, improvements continue for other markets across the region including San Francisco, Washington, D.C. and Boston. We will continue to grow our project management and construction business through our customer channels including healthcare and multi-sites.

Our Healthcare development business continues to build momentum, with the successful sale of the Bon Secours St. Francis Watkins Centre in Midlothian, Virginia. Healthcare development operations now have three projects under construction and four projects in preferred bidder position, including the integrated development, construction and management of a new 280,000 square foot Winston-Salem Veterans Affair Healthcare Center ($100 million) for the Department of Veterans Affairs in Kernersville, North Carolina.

Sustainability is an integral part of how we do business at Lend Lease; our solar initiatives continue to make great progress within our military housing portfolio and with external clients. Our solar services business now has 68 megawatts in operations or under construction.

We are proud to continue providing great developments that improve quality of life for military personnel and their families throughout the United States.

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financial Highlights fY13 fY12 % Change
Operating Profit After Tax ($ million) 53.7 36.0 49
Development pipeline:
– Backlog Residential (units) 3,860 3,860 –
– Commercial (sqm/000s) 449 410 10
Infrastructure Development:
– Number of projects 22 22 –
– Backlog number of units under management 52,900 56,140 (6)
Construction pipeline:
– New work secured revenue ($ billion) 3.5 1.7 106
– Backlog revenue ($ billion) 4.9 4.0 23
----- End of picture text -----*

• Infrastructure Development projects at June 2012 was restated from 27 (as previously reported) to 22 in order to consolidate projects with multiple phases that are substantially complete. This same methodology was applied to the number of projects disclosed at June 2013.

** Net reduction due to adjusted units on PAL Group C project which closed in FY13

During the year, we reached financial close on the third phase of the US Department of the Army’s Privatization of Army Lodging (PAL) program. With a construction value of $352 million (US$367 million), this third phase allows us to continue delivering on-post hotels for service members, their families and all government travellers. This latest phase includes approximately 3,800 hotel rooms on 18 military installations. In total, through all three phases of the PAL program, we will deliver the development and/ or renovation of more than 11,600 hotel rooms across 39 military installations nationwide. This, coupled with our military housing portfolio that encompasses more than 41,000 homes across 19 military installations, makes Lend Lease the market leader in privatised military housing and lodging.

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We are well positioned to deliver in our core markets and geographies in the Americas market. We will continue to enhance our integrated offering and expand our public private partnerships; invest in the growth of our key markets including healthcare and defence; and position ourselves as an industry leader as we deliver solutions to create the best places for our clients in the commercial, social and residential facilities of the future.

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Mount Sinai Medical Center – Leon and Norma Hess Center for Science and Medicine, New York

Client: Mount Sinai Medical Center Period: 2008 – 2013

For over 150 years, Mount Sinai Medical Center’s commitment to the community, healthcare and state-of-the-art research has been the hallmark of its greatness. Lend Lease was pleased to provide construction management services for the new Mount Sinai Medical Center – Leon and Norma Hess Center for Science and Medicine; the first expansion for the medical center since 1996.

The Leon and Norma Hess Center for Science and Medicine is an 11 level building enabling the realisation of Mount Sinai’s translational research vision. The new facility integrates clinical and basic science research with an ambulatory care cancer center uniting clinicians, scientists, educators and their colleagues in a unique, collaborative way.

Lend Lease worked closely with the design team to develop options for the project’s pursuit of a Leadership in Energy and Environment Design - New Construction silver rating by the United States Green Building Council. This rating evaluates the environmental performance of a building encouraging sustainable design.

The Greater New York Construction User Council has recognised Leon and Norma Hess Center for Science and Medicine as a 2013 Outstanding Healthcare Project and was also selected winner in the Healthcare category for Engineering News Record Best Projects 2013.

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One57, New York

Client: Extell Development Company Period: 2011 to current

In 2008 Lend Lease was selected to manage the construction of Extell’s flagship hotel and condominium project located at 157 West 57th Street. The 74 level, 853,000 square foot mixed-use tower was designed by Pritzker prize winning architect Christian de Portzamparc and will be home to New York City’s first Park Hyatt Hotel.

One of the tallest residential properties in Manhattan with expansive views of Central Park and Midtown Manhattan, the 135 super luxurious condominium residences will rise to a 1,005 foot elevation above a five-star hotel. The Park Hyatt Hotel will feature 210 guest rooms and exclusive facilities including, fine dining, a grand ballroom and event space, luxury spa, state-of-the-art fitness center, indoor swimming pool, conference center, private garden, landscaped plaza, bar, restaurant and retail.

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EmEA

“Despite a more challenging economic environment, we have continued to progress our development pipeline. As conditions in the eurozone improve, we plan to take advantage of new opportunities in ‘high potential’ segments of the market such as London residential.” Simon Hipperson, Chief Executive Officer, EmEA

The EMEA business produced a solid profit outcome despite the difficult economic backdrop and challenges within the United Kingdom (UK) construction market.

The London property market continues to outperform, particularly in the residential sector. Over the last year, our development business made strong progress delivering its secured backlog, positioning us well for further growth in the region. We secured master planning on the $2.5 billion regeneration of Elephant & Castle, a major urban regeneration in Zone One of the London Underground. We also achieved strong pre-sales, and construction has commenced on the first two phases, One The Elephant and Trafalgar Place.

The first commercial deal was signed at The International Quarter, the $2.4 billion joint venture between Lend Lease and London & Continental Railways. By late 2013 we will submit a planning application for the development of 330 residential units. We have also reached an agreement with the Joint School Trust for the development of 104 residential units and a new school in the London Borough of Wandsworth.

The UK construction market continues to exhibit weak fundamentals and competition remains very strong. Lend Lease, like other contractors, is not immune to this pressure and has taken steps to restructure the business and increase our focus on markets with the most balanced returns and growth potential.

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financial Highlights fY13 fY12 % Change
Operating Profit After Tax ($ million) 99.5 101.9 (2)
Development pipeline:
– Backlog Residential (units) 5,927 15,152 (61)
– Commercial (sqm/000s) 389 747 (48)
Infrastructure Development:
– Number of projects 25 24 4
Construction pipeline:
– New work secured revenue ($ billion) 1.1 0.8 38
– Backlog revenue ($ billion) 1.3 1.1 18
Funds under management ($ billion) 1.4 1.3 8
Assets under management ($ billion) 3.6 3.2 13
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Despite difficult conditions Lend Lease secured a number of projects in the past twelve months including:

Outlook

Volatility in European property and construction markets is expected to continue. Lend Lease is seeking to identify and capture growth opportunities across our core markets where we can capitalise on our integrated model. Over the next twelve months we will continue to progress the secured development backlog; focus on building a robust pipeline of development opportunities in the London property market; stabilise the project management and construction business; and position Lend Lease for future growth and sustainable earnings in the markets in which we operate.

• n $275 million Kingsgate house in London;

• n $107 million River Plate house in London;

• n Preferred bidder on the $282 million Treviso hospital PFI project in Italy; and,

• n $116 million Cramlington Hospital

The UK investment management operations had $1.4 billion funds under management on 30 June 2013. The Bluewater retail centre, that Lend Lease manages and holds a 30 per cent equity stake in, continued to perform robustly.

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Elephant & Castle, London

Client: Southwark Council Value: $2.5 billion Period: 2013 – 2025

Elephant & Castle is a major urban regeneration in Zone One of the London Underground. This $2.5 billion project, being delivered by Lend Lease in partnership with Southwark Council, is scheduled to be completed in 2025. It will deliver approximately 3,000 homes, 50,000 square feet of offices and the largest new park in central London for 70 years. It will also create 6,000 new jobs in the local area.

This year, Lend Lease began the construction of the first 500 new homes. One The Elephant is a landmark 37 level tower comprising 284 new units, and Trafalgar Place is a 235 unit development on the site of the former Heygate Estate. These are the first new homes which Lend Lease has sold under our master brand in London.

Lend Lease is delivering the regeneration through our integrated model, which capitalises on our expertise across the whole property and development sector. As well as funding and developing the homes, Lend Lease will also act as main contractor. Detailed planning applications for the next phase of the Heygate site will be submitted in 2014 and the first new homes at Elephant & Castle are scheduled for completion in 2016.

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The International Quarter, Stratford

Client: London & Continental Railways Value: $2.4 billion Period: 2013 – 2028

Together with our partner London & Continental Railways, Lend Lease is developing and building The International Quarter in Stratford, a $2.4 billion commercial centrepiece of the London 2012 Olympic legacy. The 15 year project will deliver 371,610 square metres of Grade ‘A’ offices, 25,575 square metres of hotel space and 330 new homes in one of the best connected locations in the capital.

The International Quarter will set a new global benchmark for the design and delivery of sustainable commercial development. It offers a unique opportunity to create a working environment that will encourage peak performance in the workplace. The unique workplace design incorporates new collaborative workspaces, reducing floor space needs by up to 25 per cent, maximises the use of outdoor spaces and natural light, provides high levels of thermal comfort, and inspirational views.

This year, Lend Lease announced its first commercial deal at The International Quarter with Starboard Atlantic Hotels Limited Liability Partnership, for a hotel of up to 500 bedrooms. Lend Lease expects to submit a planning application in late 2013 for the first residential units, with a view to have new homes on sale by early 2014.

Lend Lease

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SECURITYHOLDER REVIEW 2013

SUSTAINAbILITY

The best places deliver environmental, social and economic value

We create innovative and sustainable places in partnership, delivering maximum benefits to clients, investors and communities. Sustainability is an integral part of our culture and through design and investment in new technologies we are delivering the next generation of sustainable property and infrastructure solutions.

This year senior leadership, key stakeholders and the broader global business approved an enhanced framework for sustainability at Lend Lease. This approach sets out firm commitments to drive environmental, social and economic outcomes in everything we do. It will also increase the transparency of our performance and report on the financial and non-financial benefits. Global commitments will be set for all Lend Lease construction and development activities, assets we own and operate, and in every office we occupy. This framework also empowers our people through increased knowledge sharing and improved communication materials.

Globally, we are already benefiting from our approach to sustainability and commitment to creating sustainable property solutions with over 90 per cent of the major projects in our development pipeline achieving or targeting green certification This year our key city regeneration projects Barangaroo South (Sydney), Victoria Harbour (Melbourne) and Elephant & Castle (London) were recognised by the C40 Cities Climate Positive Development Program for their strategies and approach to achieving climate positive outcomes. Of the eighteen projects participating in this global program, we are very proud to have three Lend Lease projects leading the way for green development.

In financial year 2014 we will launch firm commitments to sustainability that will focus on the key areas of environmental impacts, economic readiness, and social responsibilities.

CLIMATE[+] Development Program

ENVIRONmENT

The resources we use will be recycled, responsible and re-usable.

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SOCIAL

Every place we create will leave a positive social legacy.

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THE TRIPLE bOTTOm LINE

ECONOmIC

We will future ready our business and the built environment.

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Victoria Harbour, Melbourne, Australia

Lend Lease SECURITYHOLDER REVIEW 2013 29

Delivering the best places

Twenty10

Lend Lease proudly supports Twenty10, a community not for profit organisation based in Sydney, Australia supporting and working with young people, communities and families of diverse genders, sexes and sexualities.

The community partnership is coordinated by a team of passionate Lend Lease employees who sit on Lend Lease’s lesbian, gay, bisexual, transgender and intersex (LGBTI) employee resource group and regularly volunteer their time to support Twenty10 in its work and cook meals for the young people who use the organisation’s services.

Lend Lease has worked with Twenty10 on a range of projects including the Premises Project, where Lend Lease provided in-kind investment, expertise and employee volunteering to procure, design and project manage Twenty10’s new centre in Sydney.

Forté

Forté the world’s tallest timber apartment building is an expression of our commitment to drive economic and environmentally friendly building solutions, while improving the quality of our product to customers. Additionally, Forté is Lend Lease and Australia’s first on market 5 Star Green Star – Multi Unit Residential As Built certified project.

SAfE

• n 0 injuries

• n Very clean, very quiet site

• n Low VOC and low formaldehyde materials

SUSTAINAbLE

• n 22 per cent less greenhouse gas emissions over 50 year life cycle

• n Significant reduction in site waste

• n Significantly reduced truck movements to site

• n Saving 7.7 ML of water

• n The use of CLT reduces CO2-equivalent emission by over 1,400 tonnes, when carbon uptake during growth is included. This is like taking 345 cars off the road for a year

TImE SAVINgS & EffICIENCIES

Once again, this year Lend Lease was acknowledged as a Top Ten Employer in Pride in Diversity’s Australian Workplace Equality Index, Australia’s definitive national benchmark on LGBTI workplace inclusion, run by Pride In Diversity.

• n 4 month saving (circa 30 per cent) compared to concrete structure

• n Prefabricated bathrooms worked well with system

Our achievements – key statistics:

• n 3,000 hours volunteered at Twenty10 over three years

• n 3,600 meals cooked for young people who visit Twenty10 over three years

• n $100,000 in-kind investment in the Premises Project

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Athletes Village

Our challenge: To provide world class athlete’s accommodation for the London 2012 Olympic Games whilst providing a legacy for East London.

Delivering the best places – the project:

The project aimed to regenerate 27 hectares of brownfield site in East London into accommodation for 17,000 athletes and officials for the London 2012 Olympic and Paralympic Games. The project achieved full Forest Stewardship Council (FSC) project certification promoting responsible management of the world’s forests, the first project of its scale in the world to achieve this.

Delivering the best places – the outcome by numbers:

• n 40,000 tonnes of CO2 saved by switching concrete deliveries from road to rail

• n 50 per cent reduction in embodied carbon by using replacement materials instead of cement

• n 95.6 per cent of waste diverted from landfill

• n 100 per cent of timber used on site Forest Stewardship Certification

• n The Athletes Village is one of Western Europe’s largest new wetlands, it includes 150 species of herbaceous plant, 20 species of tree, 10 species of shrub, and planted 3000 mature trees

• n 4,000 local people from a wide range of backgrounds were employed on site, including those with special needs and disabilities

• n Awarded the Considerate Constructor Gold Award for three consecutive years

Lend Lease SECURITYHOLDER REVIEW 2013

30

3 44 bUILDINgS CONSTRUCTED IN 2013 WERE RECOgNISED AS gREEN bUILDINgS4 11 OF THESE BUILDINGS ACHIEVED THE HIGHEST RATING POSSIBLE

The energy efficiency of our commercial and retail assets1 has improved by 13%2

The water efficiency of our commercial and retail assets1 has improved by 18%2

Lend Lease occupies

Over 40 000m² , of Green Certified office space6

76[%] of our head offices[6] are located in Green buildings7 25[%]

NEW LEND LEASE HEAD OffICES6 WILL bE LOCATED IN gREEN bUILDINgS7

of these offices have achieved the highest rating possible

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The recycling rate of our commercial and retail assets1 has increased from 28% to 35%2

98% of our full-time employees with online access to the system had completed EHS training to the standard prescribed by their region5

We are developing software tools to help reduce energy consumption on our construction sites

• 1 Includes all commercial and retail assets under operational control in Australia

• 2 Performance as at June 2013 compared to June 2010

• 3 2013 Australian financial year: July 2012 to June 2013

• 4 A building recognised by its relevant Green Building Council as having achieved Green Building Status

• 5 Via completing our internal EH&S eLearning module

• 6 A head office is over 1,000m²

• 7 A building recognised by its relevant Green Building Council as having achieved Green Building Status

Respecting resources to create the best places

We are proud to report that as part of our Environment, Health & Safety Management System, we have implemented Enablon, our centralised database for incident and compliance reporting. Our continued focus on environmental governance ensures that all new work and investment opportunities are assessed and manage risk in the following areas:

• n Hazardous materials or dangerous goods;

• n Energy and carbon;

• n Land condition;

• n Biodiversity;

• n Extreme weather;

• n Heritage; and,

• n Innovation.

Access to data management tools, like Enablon, is provided to our employees globally. All data across

these systems is used to monitor and improve our environmental performance and approach. This year we also implemented an eLearning module for Environment, Health and Safety. As at 30 June 2013, 98 per cent of our full time employees with online access to the system had completed the training to meet the standard outlined by their region. Our projects across the globe are now able to self-report and audit compliance against these global minimum requirements.

Reporting

We were the first Australian property company to be included on the Dow Jones Sustainability Index in 2001. Since then, our regular inclusion on the index has reflected our longstanding commitment and achievements in sustainable practices.

We have maintained our position on external social, environment and governance indices in 2013, and this year in the United Kingdom and Australia we also gained external limited assurance of statutory energy and carbon data for the 2011/2012 period. This information supports Lend Lease’s external submissions under regional legislation in these countries and enables us to meet National Greenhouse Energy Reporting Scheme and Carbon Reduction Commitment requirements in Australia and the United Kingdom respectively.

In Australia, we also participate in the Energy Efficiency Opportunities (EEO) Act 2006. The Department of Resources, Energy and Tourism (DRET) has approved our Assessment Plan and Lend Lease’s actioning of this Assessment Plan was publically reported on for the 2011/2012 year.

Lend Lease SECURITYHOLDER REVIEW 2013 31

Creating the best places requires the best partnerships

Diversity at Lend Lease

The Lend Lease Board of Directors reports on Lend Lease’s gender diversity performance in accordance with the Australian Securities Exchange (ASX) Corporate Governance Principles and Recommendations. Lend Lease has measurable objectives for gender diversity.

Lend Lease is committed to growing and sustaining a diverse and inclusive workplace. Where people can bring their ‘whole self’ to work, and where we can tap into the diverse experiences, unique value and diverse thinking of our people. Diversity of experience, diversity of thought and a collaborative environment leads to excellence in innovation. To be the leading international property and infrastructure group and achieve our vision to create the best places, we need a culture and an environment that embraces and respects difference, and where we attract, retain and enable the most talented people to perform.

• n Two out of our ten board directors are women;

• n At a senior management level, two direct reports to the Group CEO are female; and,

• n For the year ended 30 June 2013, 32 per cent of our employees are women and 19 per cent of senior executive positions are held by women.

Lend Lease’s global diversity strategy focuses on building a foundation of diversity awareness and capability across the company. This will position us as an industry leader on diversity and inclusion, whilst striving for best practice and prioritising gender equality and workplace flexibility.

Employee Engagement

A priority at Lend Lease is to make the employee experience positive and productive, for individuals and the company. Lend Lease conducts a full employee survey every two years with a Pulse Survey conducted with a sample of employees every other year. The next full employment survey is due in September 2013.

During the year, a series of leadership focus groups were held with employees across the globe to better understand the results of our previous Pulse survey. It addressed the leadership opportunities at Lend Lease, what our employees would look for and value in leaders and how to capitalise on our leadership agenda.

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External Social Impact
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Reconciliation Action Plan

We are now in the second year of our Reconciliation Action Plan (RAP) working towards increasing the representation of Aboriginal and Torres Strait Islander people in professional roles across Lend Lease. During the year, we have had eleven Indigenous university interns working across the business in a range of disciplines through our partnership with Career Trackers, the private sector internship program for Indigenous university students. As our first Career Trackers intern transitioned into a permanent role as a junior development manager in Victoria, we joined industry colleagues to nominate Career Trackers for the Property Council of Australia’s Spiire Award for Innovation. We were very proud to have Career Trackers announced as the winner, one of the 21 entrants from the property sector.

Other RAP partners, like the National Centre of Indigenous Excellence, Australian Indigenous Mentoring Experience, Yalari and Whitelion are inspiring Lend Lease employees to become involved in activities including: mentoring; engaging in cultural awareness sessions; volunteering time to build capacity in a range of Indigenous community and business organisations; setting new benchmarks in remote Indigenous housing design and delivery; and cycling across the NT raise awareness for Recognise, the campaign for Constitutional Recognition of Australia’s First Peoples.

Lend Lease foundation

Lend Lease’s Foundation is responsible for initiatives that enrich the lives of employees and their families; aid charities and communities in which employees have an involvement; and, inspire broader interest in Lend Lease. Our approach is guided by knowledge, partnerships, and through collaboration with our people. Our actions are geared to achieving mutual benefit for our employees, our company and society. Three social issues offer greatest shared value potential for Lend Lease: disaster resilience, livelihoods and shelter. These areas will form the three pillars of our future external social investment strategy.

Left: Ben Bowen from the National Centre of Indigenous Excellence with Lend Lease cyclists on the journey to constitutional recognition in the NT. (Image courtesy of Recognise and Chloe Geraghty).

Lend Lease 32 Securityholder review 2013

fIVE YEAR SUmmARIES

Proftability	FY13	FY12	FY11	FY10	FY091
Revenue	$m 12,209	11,548	8,927	10,502	14,683
Statutory proft/(loss) after tax	$m 552	501	493	346	(669)
Operating proft after tax	$m 553	507	485	324	292
Operating EBITDA	$m 744	664	711	483	396
Corporate strength
Total assets	$m 14,210	12,704	12,149	11,366	8,291
Total equity	$m 4,329	3,911	3,633	3,361	2,414
Net asset backing per security	$ 7.52	6.83	6.36	5.94	5.27
Net asset backing (including Bluewater) per security2	$ 8.31	7.43	6.94	6.51	5.95
Gearing3	% 6.1	6.3	8.9	n/a	2.9
Interest coverage ratio4	times 6.4	6.0	6.7	6.7	5.1
Securityholder value
Distribution per security5	cents 42.0	38.0	35.0	32.1	41.0
Distribution payout ratio on operating proft after tax5	% 44	43	41	50	64
Total distributions	$m 242	218	199	161	187
Earnings per stapled security on statutory proft/(loss)6	cents 96.0	87.7	86.9	69.5	(154.7)
Earnings per stapled security on operating proft6	cents 96.3	88.7	85.6	65.1	67.4
Return on Equity7	% 13.4	13.4	14.3	12.7	(26.1)
Security price as at 30 June as quoted on the
Australian Securities Exchange	$ 8.35	7.20	8.97	7.33	7.01
Employees
Total equivalent full-time employees (at 30 June)8	no. 16,536	18,439	18,374	11,094	10,656
Lost Time Injury Frequency Ratio9	no. 2.30	2.72	2.86	3.38	2.92
Senior executive positions held by women10	% 19	23	23	17	n/a
Employee engagement score11	n/a	n/a	77	n/a	79

1 Comparative information for FY09 reflect the results in Lend Lease Corporation Limited and its controlled entities prior to stapling of the Lend Lease Trust in November 2009. Includes Infrastructure in Australia from the date of acquisition, except as separately indicated.

2 Net assets includes Bluewater inventory at market value of $900.0 million (FY12 $776.9 million).

3 Net debt to total tangible assets, less cash. The FY10 ratio is not relevant as the Group was in a net cash position.

4 Operating EBITDA plus interest income divided by interest finance costs, including capitalised finance costs.

5 FY10 distribution includes the ‘in specie’ dividend of 0.1 cent following the stapling of LLT units to shares in the company in November 2009.

6 Calculated using the weighted average number of securities on issue including treasury securities. FY09 has been adjusted by a factor of 1.02 in respect of new securities issued during March and April 2010 via a 5 for 22 single bookbuild accelerated renounceable entitlement offer at $7.70 per new security.

7 Return on equity is calculated as the annual statutory profit after tax divided by the arithmetic average of beginning, half year and year end securityholders’ equity.

8 Increase in full time equivalent employees from FY10 due to the acquisition of Abigroup, Baulderstone and Conneq.

9 Injuries per million hours worked. Excludes infrastructure in Australia.

10 Defined as within the Group’s top four tiers of management. Excludes infrastructure in Australia.

11 Employee engagement score is out of 100; prepared by Towers Watson. Excludes infrastructure in Australia.

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Lend Lease SECURITYHOLDER REVIEW 2013 33

LOOkINg fORWARD

Over the last five years Lend Lease has developed and delivered on its strategy of restoring and building the business. Successfully cementing our leadership position will enable Lend Lease to deliver superior returns for securityholders, including a sustainable return on equity of circa 15 per cent and producing above average total securityholder returns.

At 30 June 2013, Lend Lease’s estimated end value development pipeline was over $37 billion, the largest it has ever been in the Group’s history. This includes an enviable pipeline of integrated urban regeneration projects which form part of our key priorities for 2014 and beyond. Having secured projects at the right margins, in conjunction with capital efficient land payment agreements, executing those projects successfully will underpin the future earnings of our company over the coming decade.

Major urban regeneration projects such as Barangaroo South and Darling Harbour Live (Sydney), RNA Showgrounds (Brisbane), Victoria Harbour (Melbourne), Waterbank (Perth) and Elephant & Castle (London) represent a large portion of where we will allocate our capital over the next few years. As we consider capital allocation more broadly, alongside these opportunities we will look at diversification into other sources of recurrent annuity-style income streams. Capital allocated in this space will be to property and infrastructure and typically either through our own Investment Management platform or via equity investments originated by our Infrastructure Development business.

In total we expect to invest between $1 billion to $1.5 billion of capital over the next three years utilising our strong balance sheet and access to third party capital.

Finally, we will remain vigilant on targeting operational excellence and reducing the Group’s overall cost base. Over the last 18 months we have invested in our people, technology, processes and systems. In the next three years we expect that the investments made will begin to pay dividends in the form of greater operational leverage for the Group.

In the last five years we have established a strong track record. Our achievements mean we are well placed to deliver the benefits of our pipeline to our stakeholders over the next three to five years.

Regional Priorities

• Region Priorities Australia n Superior execution of our development pipeline, including all major urban regeneration projects in Australia: Barangaroo South, Darling Harbour Live in Sydney, RNA Brisbane, Victoria Harbour Melbourne and Waterbank in Perth

• n Leverage and profitably grow our fully integrated operations across building, engineering and construction services

• n Continue to build our Infrastructure Development business

• n Grow our leading investment management platform

• Asia n Cement a market leading position for project management and construction work in the life sciences, education and telecommunications sectors

• n Replenish our development pipeline

• n Expand our platform in key growth markets of Malaysia and China

Europe n Deliver on two key urban regeneration projects in London, Elephant & Castle (One The Elephant and Trafalgar Place already under construction) and The International Quarter at Stratford

• n Focus on capital recycling opportunities including our interest in Bluewater and Public Private Partnership investments

• n Re-focus construction operations on core markets in Europe following a restructure in the last 18 months.

Americas n After successfully delivering our first healthcare development project, we have secured a further four projects and are targeting larger projects utilising the integrated model as we further expand this business

• n Through our construction operations, leverage market recovery in the residential housing sector – particularly the re-urbanisation trends in New York, Washington, Chicago and San Francisco

• n Roll-out the third phase of the US Department of the Army’s Privatization of Army Lodging program.

Lend Lease 34 Securityholder review 2013

DIRECTORS’ PROfILES

1. D A Crawford, AO

Chairman

Independent Director since July 2001, Chairman since May 2003 and member of the Nomination Committee. Mr Crawford holds a Bachelor of Commerce and Bachelor of Laws from the University of Melbourne and is a Fellow of the Institute of Chartered Accountants. Age 69.

2. S b mcCann

Group Chief Executive Officer and Managing Director

Appointed Group Chief Executive Officer in December 2008 and Managing Director in March 2009. Mr McCann holds a Bachelor of Economics and a Bachelor of Laws from Monash University. Age 48.

3. C b Carter, Am

Non Executive Director

Independent Director since April 2012, Chairman of the Nomination Committee and member of the Sustainability Committee. Mr Carter holds a Bachelor of Commerce degree from the University of Melbourne and a Master of Business Administration from Harvard Business School, where he graduated with Distinction. Age 70.

4. P m Colebatch

Non Executive Director

Independent Director since December 2005, Chairman of the Personnel and Organisation Committee, member of the Risk Management and Audit Committee and Nomination Committee. Mr Colebatch holds 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. Age 68.

5. g g Edington, CbE

Non Executive Director

Independent Director since December 1999, member of the Risk Management and Audit Committee, Sustainability Committee and Nomination Committee. Mr Edington is a Chartered Surveyor and has been awarded a CBE for services to children. Age 67.

6. P C goldmark

Non Executive Director

Independent Director since December 1999, member of the Nomination Committee and the Sustainability Committee. Mr Goldmark holds a Bachelor of Arts from Harvard College, Government Department and graduated magna cum laude. Age 72.

7. J S Hemstritch

Non Executive Director

Independent Director since September 2011, member of the Personnel and Organisation Committee and Nomination Committee. Ms Hemstritch holds a Bachelor of Science degree in Biochemistry and Physiology from the University of London. She is a Fellow of the Institute of Chartered Accountants in Australia and in England and Wales, and is a member of Chief Executive Women Inc. Age 60.

8. D J Ryan, AO

Non Executive Director

Independent Director since December 2004, Chairman of the Risk Management and Audit Committee and member of the Personnel and Organisation Committee and the Nomination Committee. Mr Ryan holds a Bachelor of Business from the University of Technology in Sydney and is a Fellow of the Australian Institute of Company Directors and CPA Australia. Age 61.

9. m J Ullmer

Non Executive Director

Independent Director since December 2011, Chairman of the Sustainability Committee, member of the Risk Management and Audit Committee and Nomination Committee. Mr Ullmer holds a degree in mathematics from the University of Sussex and is a Fellow of the Institute of Chartered Accountants and a Senior Fellow of the Financial Services Institute of Australia. Age 62.

10. N m Wakefield Evans

Non Executive Director

Independent Director since September 2013 and member of the Nomination Committee. Ms Wakefield Evans holds a Bachelor of Jurisprudence and Laws degree from the University of New South Wales and is a qualified lawyer in Australia, Hong Kong and the United Kingdom. Age 52.

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3 4
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Proportion of women on the Lend Lease Board

As at 1 September 2013, two out of ten Board Directors are women.

Lend Lease Securityholder review 2013 35

REmUNERATION SUmmARY

Our Executive Reward Strategy considers the interests of both internal and external stakeholders and aims to drive strong individual and team performance. The reward strategy is implemented through four guiding principles: simplicity, responsiveness, balance, governance and risk management. We focus on aligning rewards and sustainable performance. Accordingly, the strategy requires that a significant portion of an individual’s remuneration be ‘at risk’, and be tied to clear metrics.

Our remuneration framework consists of three key components:

• n Fixed Remuneration – which provides base salary and benefits which are competitive with those provided by companies of a similar size and level of complexity;

• n Short Term Incentives (STIs) – which provide awards only where executives perform well against Key Performance Indicators (KPIs) in scorecards. A significant portion is deferred and delivered in Lend Lease securities; and

• n Long Term Incentives (LTIs) – which are designed to motivate Senior executives to achieve Lend Lease’s long term strategic goals and provide alignment with securityholders’ interests.

The Board continually considers the Group’s Executive Reward Strategy and during the past year reviewed the strategy, bearing in mind market practice and stakeholder feedback, to determine its suitability as we move into the ‘Lead’ phase of our strategy. As a result of the review, changes made commencing in either the 2013 or 2014 financial years included items such as:

• n Extending the vesting period for the CEO’s STI to three years and capping the cash proportion of the CEO’s STI at $800,000 as an interim measure for 2013, pending the more comprehensive review being undertaken;

• n Implementing malus provisions for the CEO and other Senior executives

• in relation to both deferred STI and LTI awards;

• n Agreeing a new contract with the CEO which includes a reduction to the CEO’s total target remuneration package effective from 1 September 2013;

• n Changing the remuneration mix to reduce the emphasis on STIs and place greater emphasis on LTIs;

• n Deferring a greater proportion of ‘above target’ STI awards for the CEO and Senior executives; and

• n Introducing a second performance hurdle, Return on Equity for LTIs.

	Fixed			STI deferred		2013 LTI
	remuneration*	STI cash	securities to vest in			awards	Total
			Sept 2014	Sept 2015	Sept 2016
Executive Director	$000s	$000s	$000s	$000s	$000s	$000s	$000s
S B McCann	2,034	800	683	683	684	1,395	6,279

• [ Fixed remuneration includes the contractually awarded amount of Total Package Value (including the value of car and car parking benefits) from 1 September 2012 as ] outlined in section 3b of the Remuneration Report in the 2013 Annual Consolidated Financial Report.

		Committee	Committee
	Base fees	chairman fees	membership fees	Travel fees	Other benefts	1	Super- annuation	2	Total
Non Executive Directors	$000s	$000s	$000s	$000s	$000s		$000s		$000s
D A Crawford	640			30	21		16		707
C B Carter	160	18	10	30	25		16		259
P M Colebatch	160	36	36	72	14		16		334
G G Edington	160	18	46	96	30		16		366
P C Goldmark	160	24	20	83			16		303
J S Hemstritch	160		20	24			16		220
J A Hill3	67	15	8	12	12		10		124
D J Ryan	160	44	20	35			16		275
M J Ullmer	160	18	46	29	21		16		290

• 1 Other benefits include professional fees and reimbursements of the cost of travel, accommodation and subsistence.

• 2 Directors have superannuation contributions paid on their behalf in accordance with superannuation legislation.

• 3 J A Hill retired 15 November 2012.

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Lend Lease
36 Securityholder review 2013ECURITYHOLDER REVIEW
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gLOSSARY APIC 2 – Asia Pacific Investment Company No. 2 Limited.

ARIf – Lend Lease’s Asian Retail Investment Fund.

bREEAm – The Building Research Establishment Environmental Assessment Method and rating system for measuring the environmental performance of buildings in the United Kingdom.

Construction backlog revenue – The balance of work to be completed under existing construction contracts.

CRC – The Carbon Reduction Commitment is a UK mandatory cap and trade scheme proposed to cut carbon emissions by 1.2 million tonnes of carbon per year by 2020.

Darling Harbour Live (formerly known as Sydney International Convention, Exhibition and Entertainment Precinct, SICEEP – In conjunction with the NSW Government, the Darling Harbour Live consortium and Lend Lease are redeveloping a 20 hectare area of Darling Harbour to create a revitalised convention, exhibition and entertainment hub.

Development pipeline – Estimated end value of all our secured development projects based on today’s market values.

Distribution – Interim and final dividend/distribution from the Company and Trust.

Distribution payout ratio – Distribution divided by Operating Profit after Tax.

Earnings per Security – Operating Profit after Tax divided by the weighted average number of securities on issue during the year (including treasury securities). EmEA – Europe, Middle East & Africa.

financial close – The point at which the parties to a project procured under a public sector infrastructure development contract are irrevocably committed through the execution of unconditional contracts.

gmR – Global Minimum Requirements are Lend Lease’s minimum environment, health and safety standards designed to control the risks associated with our asset and construction operations.

green Star rating – Green Star is a national voluntary environmental rating system used by the Green Building Council of Australia to evaluate the environmental design and achievements of buildings.

LEED – Leadership in Energy and Environmental Design, an internationally recognised green building certification system.

New work secured revenue – Estimated revenue to be earned from construction contracts secured during the period. When formal contracts are signed, the new work secured becomes part of construction backlog revenue.

NgERS – National Greenhouse and Energy Reporting Scheme which provides data and accounting in relation to greenhouse gas emissions and energy consumption and production.

Operating Profit after Tax – Statutory Profit after Tax excluding net unrealised property investment revaluations.

PAL – US Department of the Army’s Privatization of Army Lodging (PAL) program.

Public Private Partnerships (PPP) – A joint procurement arrangement for infrastructure development contracts between the public and private sectors.

Zoned – Land that has received planning approval from the relevant authority.

Return on Equity – A measure of profitability that reveals how much profit the Group generates from funds invested by securityholders. It is calculated as Statutory Profit after Tax attributable to securityholders divided by arithmetic average of beginning, half year and year end securityholders’ equity.

Statutory Profit after Tax – Profit after tax attributable to securityholders, determined in accordance with Australian Accounting Standards.

CORPORATE DIRECTORY

Annual general meeting 2013

The Annual General Meeting of shareholders of Lend Lease Corporation Limited and the General Meeting of unit holders of Lend Lease Trust (together, Lend Lease Group) will be held at 10am on Friday 15 November 2013 in the Grand Ballroom, Four Seasons Hotel, 199 George Street, Sydney, NSW. Full details will be contained in the Notice of Meetings.

2014 financial Calendar

February Announcement of Half Year Results March Security price quoted ex distribution Interim distribution record date Interim distribution payable August Announcement of Full Year Results September Security price quoted ex distribution Final distribution record date Final distribution payable November Annual General Meeting

A current financial calendar is available online (see: www.lendlease.com/en/worldwide/investor-centre/corporate-calendar).

Entity Details

Lend Lease Corporation Limited ABN 32 000 226 228 Incorporated in NSW Australia

Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

Registered Office

Level 4, 30 The Bond, 30 Hickson Road Millers Point NSW 2000 Australia

Contact

T: +61 2 9236 6111 F: +61 2 9252 2192 W: www.lendlease.com

Share Registry Information

Computershare Investor Services Pty Limited ABN 48 078 279 277 GPO Box 242, Melbourne Victoria 3000 Australia T: 1300 850 505 (within Australia)

T: +61 3 9415 4000 (outside Australia)

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Lend Lease

Level 4 30 The Bond 30 Hickson Road Millers Point NSW 2000 T +61 2 9236 6111 F +61 2 9252 2192

www.lendlease.com

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