LENDLEASE GROUP — Annual Report 2016

Aug 18, 2016

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19 August 2016
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2016 Full Year Results Lendlease Group

Further to Lendlease Group’s earlier announcement today, attached are the following documents:

• § Securities Exchange and Media Announcement

• § Lendlease Group Financial Results Presentation

ENDS

For further information, please contact:

Investors: Justin McCarthy Tel: 02 9236 6464 Mob: 0422 800 321

Media:

Natalie Campbell Tel: 02 9236 6865 Mob: 0410 838 914

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

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

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Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia

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19 August 2016
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Lendlease delivers double digit earnings growth, strong cash generation and a positive growth outlook

19 August 2016

For the year ended 30 June 2016[1] :

• Profit after Tax of $698.2 million, up 13 per cent and earnings per stapled security of 120.1 cents, up 12 per cent

• Return on equity of 13.0 per cent[2] , up 60 bps

• Final distribution of 30.0 cents per stapled security, taking the full year distribution to 60.0 cents per stapled security

• Operating cash flow of $853.0 million, 122 per cent of Profit after Tax

• Further $3.0 billion deployed into development of projects[3]

• Strong balance sheet with gearing of 6.5 per cent[4] and available liquidity of $3.2 billion

• Further de-risking Development with the forward sale of three major commercial buildings

• Record pre sold residential revenue of $5.9 billion[5] , up 13 per cent

• Establishment of a $400 million managed investment vehicle

• Construction backlog revenue of $20.7 billion, up 20 per cent

• Funds Under Management (FUM) of $23.6 billion, up 11 per cent

Lendlease Group Chief Executive Officer and Managing Director, Steve McCann, said “Lendlease produced a strong result for the 2016 financial year (FY16) and maintained a disciplined and focused approach to delivering on our strategy.

“Solid cash generation was a highlight of the result with operating cash flow representing over 120 per cent of Profit after Tax,” said Mr McCann.

1 Comparative period is year ended 30 June 2015 (the prior year).

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

3 Gross cash outflow related to development projects.

4 Net debt to total tangible assets less cash.

5 Excludes retirement development and includes 100% of revenue from joint venture projects. Joint venture partner share of revenue is $190.3 million.

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

Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia

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

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19 August 2016
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The Development segment delivered a very strong result in FY16 across both residential and commercial.

Residential settlements were up 7 per cent to 4,790 units.

“The high level of residential pre-sales provides good future visibility for earnings.

“We settled over 1,200 apartments with non-settlements at less than 1 per cent versus our historical average of closer to 3 per cent.

“The forward sale of three major commercial buildings, two at International Quarter London and one at Darling Square in Sydney, has further de-risked our development exposure,” he said.

The Australian Construction result was robust with EBITDA margins up by more than 1 percentage point to 3.7 per cent.

The Investments segment, representing 37 per cent of operating EBITDA, continues to deliver solid recurring style earnings.

“The ongoing transition of our pipeline from planning into production and delivery has necessitated a greater focus on operational excellence and the outcomes have been pleasing.

“Safety is our number one priority and our safety record improved in FY16 with 86 per cent of our sites avoiding a critical incident, up from 83 per cent in the previous year,” said Mr McCann.

Group Financials

$ million	FY15	FY16	Change
Development 386.1 500.2 30% Construction 279.0 288.1 3% Investments 477.8 457.7 (4%)
Operating EBITDA 1,142.9 1,246.0 9%
Corporate costs (175.9) (191.1) 9%
Group EBITDA 967.0 1,054.9 9%
Depreciation and amortisation (79.5) (82.7) 4%
EBIT 887.5 972.2 10%
Net finance costs (119.5) (109.4) (8%)
PBT 768.0 862.8 12%
Income tax expense (149.1) (164.7) 10% External non-controllinginterests (0.3) 0.1 n/a
NPAT 618.6 698.2 13%

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

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Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia

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

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19 August 2016
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Group Chief Financial Officer, Tarun Gupta said the FY16 result ensures that Lendlease enters FY17 in a strong financial position.

“Generating in excess of $850.0 million in operating cash flow while deploying a further $3.0 billion[6] into development of projects is a significant achievement.”

At 30 June 2016, Lendlease held a cash balance of $1.0 billion and undrawn facilities of $2.2 billion, providing substantial financial flexibility.

“Gearing ended the year at 6.5 per cent[7] , down from 10.5 per cent at the start of the year and the interest coverage ratio is 8.0 times.

“Through active management of our capital base we have continued to invest in our record development pipeline and grow earnings, while at the same time reduced financial leverage and improved balance sheet resilience.

“The Development segment was the clear standout with earnings rising 30 per cent. The forward sale of three major commercial buildings and the establishment of a new managed investment vehicle demonstrates the value of the integrated model,” said Mr Gupta.

Outlook

Mr McCann said, “Our commitment to maintaining a disciplined and focussed approach to delivering on our strategy has positioned the company well for future success.

“Earnings visibility remains high with a growing pipeline across all three operating segments.

“The Development pipeline rose 9 per cent to $48.8 billion. Residential pre sales reached a record $5.9 billion[8] , up 13 per cent.”

Construction backlog revenue climbed 20 per cent to $20.7 billion with further work of approximately $7.0 billion in preferred bidder status. There was double digit growth in new work secured across each of Building, Engineering and Services.

“The outlook for Engineering is particularly strong on the back of $2.8 billion of new work secured. The business will bid on a substantial amount of work over the coming year, with projects that are secured likely to contribute from FY18 and beyond.

6 Gross cash outflow related to development projects.

7 Net debt to total tangible assets less cash.

8 Excluding retirement development and includes 100% of revenue from joint venture projects. Joint venture partner share of revenue is $190.3 million.

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

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Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia

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

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19 August 2016
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“The funds management platform continues to expand with 11 per cent growth in FUM to $23.6 billion. There is approximately $3.0 billion[9] of additional secured FUM across the Group’s urbanisation projects.

“Despite a mixed external operating environment, we are well placed heading into FY17 with financial strength and diversity, and visibility of earnings,” said Mr McCann.

Further information regarding Lendlease’s results is set out in the Group’s financial results presentation for the year ended 30 June 2016 and is available on www.lendlease.com.

ENDS

FOR FURTHER INFORMATION, PLEASE CONTACT:

Investors:

Media:

Justin McCarthy Natalie Campbell Tel: 02 9236 6464 Tel: 02 9236 6865 Mob: 0422 800 321 Mob: 0410 838 914

2016 Key Dates for Investors
FY16 results released to market/final distribution declared	19 August
Securities quoted ex-dividend on the Australian Securities Exchange	24 August
Final distribution record date	25 August
Final distribution payable	14 September
Annual General Meeting	11 November

9 Represents secured future FUM increase from funds with development projects in delivery.

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

Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia

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

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Lendlease 2016 Full Year Results 19 August 2016

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Contents

Group Performance and Results Highlights Steve McCann - Group Chief Executive Officer and Managing Director

Financials

Tarun Gupta - Group Chief Financial Officer

Operational Update Steve McCann - Group Chief Executive Officer and Managing Director

Appendices

Image: Barangaroo South, Sydney

3

LENDLEASE – FY16 FINANCIAL RESULTS

Indigenous engagement and reconciliation

Lendlease’s vision for Reconciliation is one in which all our employees acknowledge and celebrate the proud heritage of Australia’s First Peoples and promote opportunities for career development, sustainable business growth, and economic participation of Aboriginal and Torres Strait Islander Australians within our sector.

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FY16 Safety

1.8 (2.2 in FY15) Lost Time Injury Frequency Rate in the last 12 months 86[%] (83[%] in FY15) of operations have not had a critical incident in the last 12 months

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Image: 56 Leonard Street, New York
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Section 1 Group Performance and Results Highlights Steve McCann Group Chief Executive Officer and Managing Director

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Image: Barangaroo South, Sydney

6

LENDLEASE – FY16 FINANCIAL RESULTS

Double digit earnings growth with strong cash generation

Securityholder returns[1]

• Profit after Tax of $698.2 million, up 13%, and earnings per stapled security of 120.1 cents, up 12%

• Final distribution of 30.0 cents per security, bringing the full year distribution to 60.0 cents per security

• Return on equity up 60 bps to 13.0%[2] , within our 11% - 15% target range

Performance highlights[1]

• Operating cash flow of $853.0 million, 122% of Profit after Tax

• Further $3.0 billion deployed into development of projects[3]

• Gearing of 6.5%[4] , cash and cash equivalents of $1.0 billion and undrawn facilities of $2.2 billion

• Proceeds received on Tower Two and Tower Three at Barangaroo South following completion

• De-risking Development with the forward sale of three major commercial buildings

• Residential settlements of 4,790 units, up 7%

• Engineering new work secured of $2.8 billion, up 56%

• Establishment of a $400 million managed investment vehicle

• Investments segment continues to deliver solid recurring style earnings, representing 37% of operating EBITDA

• Growth in Funds Under Management (FUM) of 11% to $23.6 billion

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1. Comparative period the year ended 30 June 2015 (the prior year)

2. Return on equity is calculated using the annual profit after tax divided by the arithmetic average of beginning, half and year end securityholders’ equity 3. Gross cash outflow related to development projects

3. Net debt to total tangible assets less cash

7

LENDLEASE – FY16 FINANCIAL RESULTS

Strong operating cash flow despite continued investment

Development inventories

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$m $m
Development inventories (LHS)
4,000 Change in development inventories (RHS) 950
3,500
750
3,000
550
2,500
350
2,000
150
1,500
1,000 (50)
FY12 FY13 FY14 FY15 FY16
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• Production capital in development inventories has increased by more than $1.3 billion since FY14

• $3.7 billion of development inventories as at June 2016, up $460.6 million or 14%[1]

• Rate of increase in production capital has eased

Operating cash flow

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$m
Operating cash flow Adjusted operating cash flow
1,450
1,200
950
700
450
200
(50)
(300)
FY12 FY13 FY14 FY15 FY16
1. Comparative period the year ended 30 June 2015 (the prior year)
2. Adjusted for change in development inventories on operating cash flow
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• Operating cash flow of $853.0 million

• Production capital relating to development inventories is included in operating cash flow

• Adjusted operating cash flow of $1.4 billion in FY16, taking into account cash impact of increase in development inventories[2]

• FY16 includes $1.2 billion of cash receipts received on Tower Two and Tower Three at Barangaroo South following completion, with the majority of related profits booked in FY13

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Section 2 Financials Tarun Gupta Group Chief Financial Officer

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Image: 432 Park Avenue, New York

9

LENDLEASE – FY16 FINANCIAL RESULTS

Re-segmentation and transition to Integrated Reporting

Re-segmentation

Integrated reporting

• Three reporting segments: Development, Construction and Investments

  • Annual Report prepared with reference to the International Integrated Reporting Council’s framework

• More accurately reflects the underlying nature of the revenue generating activities of the Group

• Alignment with internal management reporting, capital allocation framework and management commentary

• Key changes for FY16 include:

• Retirement Ownership transferred to Investments

• Separation of the Infrastructure Development activities across Development and Investments based on type of activity

• Consolidation of former Annual Report, Directors’ Report & Financial Statements and the Securityholder Review into one document

• Expected outcomes and benefits include:

• Consolidated information source - integrates the reporting of our performance, strategy, value creating capabilities and governance

• Better articulating how we create value through financial and non-financial means

• More effective and efficient reporting

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10

LENDLEASE – FY16 FINANCIAL RESULTS

Financial performance

$ million	FY15	FY16	Change
Development	386.1	500.2	30%	•	Strong residential and commercial contribution in Australia and Europe
Construction	279.0	288.1	3%	•	Higher revenue offset by weaker offshore margins
Investments	477.8	457.7	(4%)	•	Decline driven by lower Asia contribution
Operating EBITDA	1,142.9	1,246.0	9%
Corporate costs	(175.9)	(191.1)	9%	•	FY16 comprises Group Services costs of $168.7 million1, up 8%
Group EBITDA	967.0	1,054.9	9%
Depreciation and amortisation	(79.5)	(82.7)	4%
EBIT	887.5	972.2	10%
Net finance costs	(119.5)	(109.4)	(8%)	•	Lower net debt and average cost of debt down 60 bps to 4.6%
PBT	768.0	862.8	12%
Income tax expense	(149.1)	(164.7)	10%	•	Effective tax rate of 19.1%, down 30 bps
External non-controlling interests	(0.3)	0.1	n/a
NPAT	618.6	698.2	13%
Weighted avg. securities	579.4	581.4	n/a
EPS cents	106.8	120.1	12%

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1. Remaining FY16 corporate costs represent Group Treasury of $22.4 million

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LENDLEASE – FY16 FINANCIAL RESULTS

Cash flow movements ($b)[1]

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Denotes major movements
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Barangaroo Commercial +$2.1b,
Urban Regen ($2.6b),
other Urban Regen +$1.2b,
Communities ($0.6b)
Communities +$0.8b
Equity contribution to
(3.4) LLITST [2] and
LLOneITST [3] ($0.4b)
4.3 Net Multi Option Facility
($0.5b), US$ Reg. S notes
+$0.5b, US PP ($0.2b),
dividends ($0.3b)
0.8 (0.8)
(0.7)
PPP vehicle +$0.4b,
LLOneITST [3] equity sell
down +$0.1b 1.0
0.8
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FY16 opening cash Operating inflow Operating outflow Investing inflow Investing outflow Net financing and FY16 closing cash other adjustments4

1. Represents an indicative analysis of operating cash inflows and outflows. Note, operating cash inflows and outflows relating to Construction have been included as a net position in the above chart

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1. Lend Lease International Towers Sydney Trust (Barangaroo South Tower Two and Tower Three)

2. Lend Lease One International Towers Sydney Trust (Barangaroo South Tower One)

3. Includes the impact of foreign exchange movements on opening cash

12

LENDLEASE – FY16 FINANCIAL RESULTS

Financial position

Financial position
$ million	30 June 15	30 June 16	Change		Key areas of capital employed • Development inventories of $3.7 billion • Investments of $3.0 billion including: −Co-Investments of $1.4 billion −Retirement Ownership of $1.5 billion Funding and liquidity • Circa $3.2 billion of cash and undrawn facilities • Interest coverage of 8.0 times • Gearing of 6.5%2 • Prudent debt maturity profile, no material concentrations
Assets
Cash and cash equivalents 750.1 1,008.4 34% Inventories 4,104.2 4,602.9 12% Equity accounted investments 1,235.8 1,152.6 (7%) Investment properties1 5,994.9 5,940.7 (1%) Other assets (including financial) 6,874.2 5,888.3 (14%)
Total assets 18,959.2 18,592.9 (2%)
Liabilities
Borrowings and financing arrangements 2,450.3 2,031.3 (17%) Other liabilities (including financial)1 11,340.7 10,946.9 (3%)
Total liabilities 13,791.0 12,978.2 (6%)
Net assets 5,168.2 5,614.7 9%
Gearing2 10.5% 6.5% (38%)

For further detailed information on the financial results, please refer to the Appendices

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1. Investment properties includes retirement living properties of $5,743.1 million. Other liabilities includes retirement resident liabilities of $4,119.5 million 2. Net debt to total tangible assets less cash

Section 3 Operational Update

Steve McCann Group Chief Executive Officer and Managing Director

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Artist impression: Paya Lebar Quarter, Singapore

14

LENDLEASE – FY16 FINANCIAL RESULTS

Development

Performance highlights[1]

• Proceeds received on Tower Two and Tower Three at Barangaroo South following completion

• Forward sale of three major commercial buildings: two in delivery at International Quarter London and one at Darling Square, Sydney

• Commercial development in delivery with a combined end value of approximately $6.5 billion across 10 buildings

• Residential settlements of 4,790 units, up 7%[2] :

• Communities settlements of 3,402 units, down 11%, although presales of 2,794 units, up 31%

• Apartments settlements of 1,203 units, up from 440 units in FY15. Nonsettlement rate < 1.0%

• Record presold residential revenue of $5.9 billion[4] , up 13%

• Establishment of a $400 million managed investment vehicleseeded by the sale of a number of the Group’s PPP interests in Australia

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40%
of operating
Commercial building completion profile [3] ($b) EBITDA
By end value
Paya Lebar Commercial,
Darling Square Commercial, Complete
Darling Harbour Live Hotel In delivery
and International Quarter
Barangaroo South Barangaroo South London (stage 1)
Paya Lebar Retail
Tower Three Tower One
~3.5
~2.0
~1.3 ~1.0
FY16 FY17 FY18 FY19
Residential presales [4] ($b)
Aus Communities Aus Apartments Europe Apartments
5.9
5.2 0.4
1.3
(0.8) 1.3
1.3
(0.8)
1.0
(0.4)
3.9
3.4
Settlements Sales
0.5 0.7
FY15 Aus Aus Europe Aus Aus Europe FY16
presales Communities Apartments Apartments Communities Apartments Apartments presales
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1. Comparative period the year ended 30 June 2015 (the prior year)

2. Includes retirement development

3. Not indicative of cash or profit recognition

4. Excludes retirement development and includes 100% of revenue from joint venture projects. Joint venture partner share of revenue is $190.3 million

15

LENDLEASE – FY16 FINANCIAL RESULTS

Apartment presales - by location and customer

Presales (by value, as at 30 June 2016)[1]

Run-off profile by location[2]

By customer

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39%
FY17 FY18/19
36%
Other offshore,
18%
35%
22%
20%
Mainland
China, 23%
15% 15%
7%
3% 4% Local, 59%
Sydney Melbourne London Brisbane
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Projects completing in FY17 Revenue of approximately $1.0+ billion Units of approximately 1,500+ to settle approximately 98% presold[2] to settle in FY17[2] in FY17[2]

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1. Apartment projects in delivery reflecting total presales of $4.7 billion, including 100% of revenue from joint venture projects. Joint venture partner share of revenue is $185.5 million

2. Based on expected completion date of underlying buildings, subject to change in delivery program

LENDLEASE – FY16 FINANCIAL RESULTS

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16
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Construction
23%
of operating
Performance highlights [1] Backlog ($b) EBITDA
•
Strong result from Australian operations, with EBITDA up
52%
• Australian construction margin improvement of over 100 14.6 (12.0)
0.8
bps to 3.7%
20.7
17.3
•
Asia and Europe broadly break even
•
Americas margin impacted by change in contract type
FY15 New work Revenue Other FY16
mix
secured realised
•
Backlog revenue of $20.7 billion, up 20%, with book to bill
ratio of 1.2 [2]
EBITDA ($m)
•
Internal pipeline accounts for 23.0% of backlog [3]
FY15 FY16 279.0 288.1
• New work secured of $14.6 billion, up 24%: 231.8
− Building $10.8 billion, up 19% 152.6
116.9
−
Engineering $2.8 billion, up 56% 56.4
23.0
− Services $1.0 billion, up 11% (13.5) (5.6) 5.5
•
Approximately $7 billion of further work in preferred
bidder status Australia Asia Europe Americas Total
EBITDA Margin (%)
FY15 2.6% (6.0%) 1.8% 3.3% 2.6%
FY16 3.7% (1.7%) 0.4% 1.4% 2.4%
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1. Comparative period the year ended 30 June 2015 (the prior year)

2. Ratio calculated as new work secured over revenue realised

3. Includes all major construction projects disclosed in the Portfolio Report as at 30 June 2016, which represents 51.2% ($10.6 billion) of secured backlog

LENDLEASE – FY16 FINANCIAL RESULTS

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17
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Investments

Performance highlights[1]

• FUM of $23.6 billion, up 11%

• Approximately $3.0 billion[2] of additional secured FUM across the Group’s urbanisation projects

• New equity raised of $1.3 billion

• Co-Investments up 10% to $1.4 billion:

• Equity contributions to LLITST[3] and LLOneITST[4]

• Sale of 25% co-investment stake in LLOneITST[4]

• Weaker result in Asia driven by reduction in carrying value of 313@somerset

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37%
of operating
EBITDA
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Investments EBITDA by activity ($m)

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FY15 FY16
363.5
349.4
114.3 108.3
Ownership interests Operating earnings
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FUM ($b)

• Retirement Ownership and Management - 1,038 unit resales[5]

• Strategic decision to exit NZ Retirement business

• US Military Housing - operational units under management up 2% to 53,055

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2.3 (0.8) 1.0 (0.2)
23.6
21.3
FY15 Acquired Divested Net Other FY16
revaluations
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1. Comparative period the year ended 30 June 2015 (the prior year)

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1. Represents secured future FUM increase from funds with development projects in delivery

2. Lend Lease International Towers Sydney Trust (Barangaroo South Tower Two and Tower Three)

3. Lend Lease One International Towers Sydney Trust (Barangaroo South Tower One)

4. Australian owned and managed retirement units

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Section 4 Outlook

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Steve McCann Group Chief Executive Officer and Managing Director

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Artist impression: International Quarter London

19

LENDLEASE – FY16 FINANCIAL RESULTS

Outlook

• Despite mixed market conditions, we are well placed heading into FY17 with:

• Financial strength - low gearing, high levels of liquidity and access to third party capital

• Earnings visibility from the growing pipeline across our business segments

• Resilient business model with diversity by both business and geography

• Strong risk management framework to manage individual projects, property cycles and sovereign risk

• Integrated capabilities across the property and infrastructure value chain is our key competitive advantage

• Relentless approach to health, safety and sustainability

• Focussed on operational excellence in project delivery, with ongoing disciplined approach to origination in attractive markets to support longer term growth outlook

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20

LENDLEASE – FY16 FINANCIAL RESULTS

Earnings visibility from growing pipeline across all segments

Development pipeline of $48.8 billion (76.4% urbanisation projects)

Record residential presold Construction backlog revenue revenue of $5.9 billion[1] of $20.7 billion

FUM of $23.6 billion

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Development Residential Construction Funds under
pipeline presold revenue [1] backlog revenue management
60 ($b) 7 ($b) 22 ($b ) 25 ($b)
6
50
20 20
5
40
18 15
4
30
3
16 10
20
2
14 5
10
1
0 0 12 0
FY13
FY12
FY12 FY13 FY14 FY15 FY16 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
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Urbanisation Communities

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1. Excludes retirement development and includes 100% of revenue from joint venture projects. Joint venture partner share of revenue is $190.3 million

Section 5 Q&A

Steve McCann Group Chief Executive Officer and Managing Director

Tarun Gupta Group Chief Financial Officer

Dan Labbad

Chief Executive Officer, International Operations

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Image: Fulton Street Transit, New York

Appendices

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Artist impression: The Darling Exchange, Sydney

2

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Group Financials
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3

LENDLEASE – FY16 FINANCIAL RESULTS

Income Statement

Income Statement ($ million)	Jun-15	Jun-16
Revenue	13,280.9	15,088.5
Cost of sales	(11,613.3)	(13,388.5)
Gross profit	1,667.6	1,700.0
Other income	251.8	256.9
Other expenses	(1,051.8)	(1,136.3)
Results from operating activities	867.6	820.6
Finance revenue	17.7	16.8
Finance costs	(137.2)	(126.2)
Net finance costs	(119.5)	(109.4)
Share of profit of equity accounted investments	19.9	151.6
Profit before Tax	768.0	862.8
Income tax expense	(149.1)	(164.7)
Profit after Tax	618.9	698.1
Profit after Tax attributable to:
Members of Lendlease Corporation Limited	530.2	557.8
Unitholders of Lendlease Trust	88.4	140.4
Profit after Tax attributable to securityholders	618.6	698.2
External non controlling interests	0.3	(0.1)
Profit after Tax	618.9	698.1
Basic/Diluted EPS per Lendlease Group Stapled Security (cents)	106.8	120.1

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4

LENDLEASE – FY16 FINANCIAL RESULTS

Statement of Financial Position

Statement of Financial Position ($ million)	Jun-15	Jun-16
Current Assets
Cash and cash equivalents	750.1	1,008.4
Loans and receivables	3,631.0	2,785.0
Inventories	1,980.0	1,923.0
Current tax assets	8.6	21.6
Other financial assets	42.7	50.7
Other assets	83.2	69.2
Total current assets	6,495.6	5,857.9
Non Current Assets
Loans and receivables	320.1	285.4
Inventories	2,124.2	2,679.9
Equity accounted investments	1,235.8	1,152.6
Investment properties	5,994.9	5,940.7
Other financial assets	625.7	628.8
Deferred tax assets	305.5	109.5
Property, plant and equipment	348.8	432.3
Intangible assets	1,444.7	1,446.8
Defined benefit plan asset	9.2	7.5
Other assets	54.7	51.5
Total non current assets	12,463.6	12,735.0
Total assets	18,959.2	18,592.9

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Statement of Financial Position ($ million)	Jun-15	Jun-16
Current Liabilities
Trade and other payables	5,036.1	4,328.8
Resident liabilities	4,080.4	4,119.5
Provisions	328.8	292.4
Borrowings and financing arrangements	227.3	0.0
Other financial liabilities	33.7	83.6
Total current liabilities	9,706.3	8,824.3
Non Current Liabilities
Trade and other payables	1,586.0	1,909.4
Provisions	46.0	70.6
Borrowings and financing arrangements	2,223.0	2,031.3
Defined benefit plan liability	68.8	3.4
Other financial liabilities	32.3	9.7
Deferred tax liabilities	128.6	129.5
Total non current liabilities	4,084.7	4,153.9
Total liabilities	13,791.0	12,978.2
Net assets	5,168.2	5,614.7
Equity
Issued capital	1,256.3	1,276.3
Treasury shares	(89.9)	(99.5)
Reserves	91.7	98.0
Retained earnings	2,936.0	3,289.6
Total equity attributable to equity holders of Lendlease Corporation Limited	4,194.1	4,564.4
Total equity attributable to unitholders of Lendlease Trust	968.0	1,048.6
Total equity attributable to securityholders	5,162.1	5,613.0
External non controlling interests	6.1	1.7
Total equity	5,168.2	5,614.7

5

LENDLEASE – FY16 FINANCIAL RESULTS

Statement of Cash Flows

Statement of Cash Flows ($ million) Jun-15	Jun-16
Cash Flows from Operating Activities
Cash receipts in the course of operations 11,896.7	16,028.4
Cash payments in the course of operations (11,866.7)	(15,154.9)
Interest received 15.2	12.8
Interest paid (151.2)	(134.8)
Dividends/distributions received 61.4	90.0
Income tax received/(paid) in respect of operations (122.0)	11.5
Net cash provided by/(used in) operating activities (166.6)	853.0
Cash Flows from Investing Activities
Sale/redemption of investments 615.0	330.5
Acquisition of investments (653.0)	(563.2)
Acquisition of/capital expenditure on investment properties (209.2)	(25.7)
Net loans from/(to) associates and joint ventures (22.5)	38.6
Acquisition of consolidated entities (net of cash acquired and acquisition costs) (5.7)
Disposal of consolidated entities (net of cash disposed and transaction costs) 7.0	382.5
Disposal of property, plant and equipment 11.7	16.7
Acquisition of property, plant and equipment (57.4)	(132.7)
Acquisition of intangible assets (67.3)	(46.1)
Other investing activities (2.0)
Net cash provided by/(used in) investing activities (383.4)	0.6
Cash Flows from Financing Activities
Proceeds from borrowings 2,276.6	5,327.6
Repayment of borrowings (2,333.4)	(5,626.0)
Dividends/distributions paid (374.2)	(293.2)
Other financing activities (34.2)	(28.8)
Net cash used in financing activities (465.2)	(620.4)
Other Cash Flow Items
Effect of foreign exchange rate movements on cash and cash equivalents 49.5	25.1
Net increase/(decrease) in cash and cash equivalents (965.7)	258.3
Cash and cash equivalents at beginning of financial year 1,715.8	750.1
Cash and cash equivalents at end of financial year 750.1	1,008.4

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6

LENDLEASE – FY16 FINANCIAL RESULTS

Securityholder returns

Return on equity[1]

Distributions

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cents
18.2% [2] 80 54%
13.5% 13.6% 60
13.0%
12.4% 48%
49
30
40 27
20
22 42%
20
30
27
22 22
16
0 36%
FY12 FY13 FY14 FY15 FY16
FY12 FY13 FY14 FY15 FY16
Interim distribution (LHS) Final distribution (LHS)
Payout ratio (RHS)
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1. Return on equity is calculated using the annual profit after tax divided by the arithmetic average of beginning, half and year end securityholders’ equity 2. FY14 includes Bluewater sale

7

LENDLEASE – FY16 FINANCIAL RESULTS

Recurring income

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100%
90%
80%
Approximately 60% - 70% of
earnings are derived from
70%
residential, commercial,
infrastructure and retail
60%
development activities and from
50% construction/services margin
40%
30%
Approximately 30% - 40% of
20% earnings are derived from the
Investments segment delivering
10% recurring income
0%
FY14 FY15 FY16
Investments income Other Group earnings
Operating EBITDA
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8

LENDLEASE – FY16 FINANCIAL RESULTS

Revenue and EBITDA by segment and geography

$ million	Revenue	Revenue		EBITDA
	FY15	FY16	FY15	FY16
Development Australia	1,508.6	2,034.4	336.8	` 391.5
Asia	1.0	17.5	(11.7)	(19.1)
Europe	317.6	431.7	66.3	139.5
Americas Total Development	48.2 1,875.4	60.3 2,543.9	(5.3) 386.1	(11.7) 500.2
Construction
Australia	5,912.7	6,271.0	152.6	231.8
Asia	225.0	334.2	(13.5)	(5.6)
Europe	1,258.0	1,341.3	23.0	5.5
Americas	3,541.2	4,085.9	116.9	56.4
Total Construction	10,936.9	12,032.4	279.0	288.1
Investments
Australia Asia	322.3 45.5	359.7 54.9	329.5 64.3	348.5 14.3
Europe	48.0	25.1	40.2	35.1
Americas	52.2	70.8	43.8	59.8
Total Investments	468.0	510.5	477.8	457.7
Total Operating
Australia	7,743.6	8,665.1	818.9	971.8
Asia	271.5	406.6	39.1	(10.4)
Europe	1,623.6	1,798.1	129.5	180.1
Americas	3,641.6	4,217.0	155.4	104.5
Group Total Operating	13,280.3	15,086.8	1,142.9	1,246.0

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EBITDA by segment ($m)

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1,400
FY15 FY16
1,200
1,000
800
600
400
200
0
Development Construction Investments Total
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EBITDA by geography ($m)

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1,400
FY15 FY16
1,200
1,000
800
600
400
200
0
Australia Asia Europe Americas Total
(200)
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9

LENDLEASE – FY16 FINANCIAL RESULTS

Revenue and EBITDA by segment and geography, local currency

Europe

EBITDA, local currency (m)

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Revenue EBITDA FY15 FY16
Local currency
100
FY15 FY16 FY15 FY16
80
Europe, GBP million
Development 168.3 215.9 35.1 69.8 60
Construction 666.7 670.7 12.2 2.8 40
Investments 25.4 12.6 21.3 17.6 20
Total 860.4 899.2 68.6 90.2
0
Development Construction Investments Total
Americas
Revenue EBITDA 160 FY15 FY16
Local currency
FY15 FY16 FY15 FY16 120
Americas, USD million
80
Development 40.0 44.0 (4.4) (8.5)
Construction 2,939.2 2,982.7 97.0 41.2 40
Investments 43.3 51.7 36.4 43.7 0
Total 3,022.5 3,078.4 129.0 76.4
(40)
Development Construction Investments Total
Asia
Revenue EBITDA FY15 FY16
Local currency 80
FY15 FY16 FY15 FY16
60
Asia, SGD million
40
Development 1.1 17.7 (12.8) (19.3)
Construction 245.3 337.5 (14.7) (5.7) 20
Investments 49.6 55.4 70.1 14.4 0
Total 296.0 410.6 42.6 (10.6) (20)
(40)
Development Construction Investments Total
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10

LENDLEASE – FY16 FINANCIAL RESULTS

Debt metrics

	30 June 2015 30 June 2016
Net debt	$ million 1,758.5 1,052.4
Borrowings to total equity plus borrowings	% 32.2 26.6
Net debt to total tangible assets, less cash	% 10.5 6.5
Interest coverage1	times 6.6 8.0
Average cost of debt including margins	% 5.2 4.6
Average debt duration	years 3.9 5.3
Debt mix fixed: floating	ratio 67:33 91:9
Undrawn facilities	$ million 1,423.5 2,172.6

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

11

LENDLEASE – FY16 FINANCIAL RESULTS

Debt facilities and maturity profile

Debt facilities ($m)[1]

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Facility Drawn
1,500
714
531 531 529 529
476 476
275 275
179
0 33 33
Syndicated Multi- UK Bond Issue Club Revolving US$ Reg. S notes US Private Singapore Bond Australian Medium
Option Facility Credit Facility Placement Term Notes
Debt maturity profile ($m) [2]
225
250
900 535
600 536 533
275 179
33
FY17 FY18 FY19 FY20 FY21 FY22 FY26
Syndicated Multi-Option Facility UK Bond Issue Club Revolving Credit Facility US$ Reg. S notes
US Private Placement Singapore Bond Australian Medium Term Notes
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1. Values are shown at amortised cost

2. Values are shown at gross facility value

12

LENDLEASE – FY16 FINANCIAL RESULTS

Exchange rates

The table below outlines the impact on the Income Statement and Statement of Financial Position of a +/- 10 percentage movement in exchange rates

Income Statement			Statement of Financial	Statement of Financial	Position
Local Foreign FY151	FY162	Local	Foreign	FY153	FY164
AUD USD 0.83	0.73	AUD	USD	0.77	0.75
AUD GBP 0.53	0.50	AUD	GBP	0.49	0.56
AUD SGD 1.09	1.01	AUD	SGD	1.04	1.00
		FX sensitivity
			USD	GBP	SGD
Income Statement
.+10% blended FX rate (strengthening	AUD)		0.80	0.55	1.11
Change as % of Group PAT (A$m)			(0.90%)	(1.49%)	0.26%
.-10% blended FX rate (weakening AUD)			0.66	0.45	0.91
Change as % of Group PAT (A$m)			1.13%	1.83%	(0.32%)
Statement of Financial Position
.+10% spot FX rate (strengthening AUD)			0.83	0.62	1.10
Change as % of Group Net Assets (A$m)			0.35%	(0.12%)	(0.37%)
.-10% spot FX rate (weakening AUD)			0.68	0.50	0.90
Change as % of Group Net Assets (A$m)			(0.37%)	0.15%	0.45%

1. Average foreign exchange rate for financial year 2015 3. At spot foreign exchange rate 30 June 2015 2. Average foreign exchange rate for financial year 2016 4. At spot foreign exchange rate 30 June 2016

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13

LENDLEASE – FY16 FINANCIAL RESULTS

Re-segmentation

• Three reporting segments: Development, Construction and Investments

• The table below outlines the key changes under the revised segment reporting structure adopted in FY16

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Operational area Prior segment New segment
Retirement Ownership Development Investments
Retirement Development Development Development (no change)
US Military Housing Infrastructure Development Investments
Public Private Partnerships (PPP)
Advisory fees Infrastructure Development Development
Investment in PPP projects under
Infrastructure Development Development
development
Investment and management of
Infrastructure Development Investments
completed PPP projects
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14

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Development
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15

LENDLEASE – FY16 FINANCIAL RESULTS

Development earnings/pipeline by geography

EBITDA by geography ($m) Development pipeline by geography ($b)

Urbanisation % of total: FY15: 73.1%; FY16: 76.4%

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48.8
500.2 44.9
FY15 FY16 FY15 FY16
391.5 386.1
336.8 29.0
26.9
139.5
9.4 10.5
66.3 5.8 5.9
2.8 3.4
(11.7)(19.1) (5.3) (11.7) Australia Asia Europe Americas Total
Australia Asia Europe Americas Total
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Urbanisation by geography FY16 ($b)

Historical development pipeline ($b)

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3.4
Australia
10.5 37.3 17.5 Asia
Europe
Americas
5.9
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Urbanisation pipeline Communities pipeline
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----- Start of picture text -----

48.8
44.9
37.2 37.4 37.7 11.5
12.1
15.9 14.3 12.7
37.3
32.8
21.3 23.1 25.0
FY12 FY13 FY14 FY15 FY16
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16

LENDLEASE – FY16 FINANCIAL RESULTS

Development inventories ($b)[1]

Unsold inventory (incl. Bluewater up to FY13) Capital employed in production Capital employed in land and infrastructure

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1.9 2.3 2.3 2.4 3.2 3.7
100%
80%
60%
40%
20%
0%
FY11 FY12 FY13 FY14 FY15 FY16
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1. Indicative view based on development property inventories as at 30 June 2016

17

LENDLEASE – FY16 FINANCIAL RESULTS

Apartments and Communities - Presales[1]

Apartments presales[2]

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By units By $b
(1,203)
1,661
1.7 (1.2)
5,914
5,456 5.2
4.7
FY15 Sales Settlements FY16 FY15 Sales Settlements FY16
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Communities presales[3]

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By units By $b
(3,402)
4,058 (0.8)
1.0
2,794
2,138 0.7
0.5
FY15 Sales Settlements FY16 FY15 Sales Settlements FY16
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1. Excludes retirement development which had 227 settlements in FY15 and 185 settlements in FY16 and includes 100% of revenue from joint venture projects. Joint venture partner share of revenue is $190.3 million (Apartments: $185.5 million and Communities: $4.8 million)

2. Apartments refers to built-form units (excluding communities and commercial) per the Annual Report 3. Communities refers to land lots per the Annual Report

18

LENDLEASE – FY16 FINANCIAL RESULTS

Apartment settlement profile

Project	Building	Units	Presold (%)	Presales1 ($m)	Delivery2	Delivery2	Delivery2	Delivery2	Delivery2
					FY16		FY17	FY18	FY19
Barangaroo South Anadara and Alexander - Completed in FY16 159			- -		l		l
Darling Square Wirth House, St Leon and Darling One 539 Darling North, Harbour Place and Trinity House 577 Darling Rise, Barker House and Arena 391			100% ~585 100% ~810 100% ~490				l
Victoria Harbour Concavo - Completed in FY16 238 888 Collins 578 889 Collins 536 883 Collins 528 Collins Wharf 1 321			- -		l		l
			99% ~2803			l
			98% ~360
			96% ~350					l
			77% ~225
Brisbane Showgrounds The Green - Completed in FY16 356 North Yard and South Yard 401			- -		l		l
			98% ~210
Toorak Park Park, East, North and Terrace Homes 468			87% ~385				l
Wandsworth Cobalt Place - Completed in FY16 103			- -		l
Elephant & Castle One The Elephant - Completed in FY16 284 Trafalgar Place - Completed in FY16 235 South Gardens 360 West Grove (Buildings 1 and 2) 593			- - - - 86% ~270 69% ~435		l
					l
International Quarter London Glasshouse Gardens (Buildings 1 and 2) 333			100% ~310

• = Indicates profit earned on buildings completed during the financial year

• = Indicates profit expected to be earned in the financial year

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1. Closing presales balance as at 30 June 2016

2. Based on expected completion date of underlying buildings, subject to change in delivery program

3. Stage one: 133 units completed in FY16

19

LENDLEASE – FY16 FINANCIAL RESULTS

Commercial building completion profile[1]

Project	Capital model	sqm ('000)	Building	FY16	FY16	FY17	FY18	FY19
International Quarter London2	Fund through 73		Stage 1 Commercial (2 buildings)
Paya Lebar Quarter	Joint venture	93 44	Commercial (3 buildings) Retail
Darling Square2	Fund through	26 37	Commercial Hotel
Brisbane Showgrounds	Sold	17	Kings Gate building		l
Barangaroo South		200	Tower One
	Fund through		Tower Three		l
			International House Sydney

= Indicates buildings completed during the financial year

= Indicates expected building completion date

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1. Not indicative of cash or profit recognition

2. Commercial buildings were presold during the year

20

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Construction
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21

LENDLEASE – FY16 FINANCIAL RESULTS

EBITDA and margins

EBITDA ($m)

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350 FY15 FY16
288.1
300 279.0
250 231.8
200
152.6
150 116.9
100
56.4
50 23.0
(13.5) (5.6) 5.5
0
Australia Asia Europe Americas Total
(50)
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EBITDA Europe (GBPm)

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14
12.2
12
10
8
6
4 2.8
2
0
FY15 FY16
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Construction margins (%)

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FY15 FY16
6%
3.7%
3.3%
4%
2.6% 2.6% 2.4%
1.8%
1.4%
2%
0.4%
0%
(2%)
(1.7%)
(4%)
(6%)
(6.0%)
(8%)
Australia Asia Europe Americas Total
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EBITDA Americas (USDm)

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120
97.0
100
80
60
41.2
40
20
0
FY15 FY16
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22

LENDLEASE – FY16 FINANCIAL RESULTS

New work secured revenue/backlog revenue

$ million	Australia	Asia	Europe	Americas	Total
Jun-15 Jun-16 Jun-15 Jun-16 Jun-15 Jun-16 Jun-15 Jun-16 Jun-15 Jun-16
New work secured revenue1
Building 3,894.5 4,518.6 424.3 462.0 1,566.3 1,289.8 3,206.3 4,531.5 9,091.4 10,801.9
Engineering 1,735.3 2,729.9 57.0 22.3 1,792.3 2,752.2
Services 920.7 1,041.3 920.7 1,041.3
Total new work secured revenue 6,550.5 8,289.8 481.3 484.3 1,566.3 1,289.8 3,206.3 4,531.5 11,804.4 14,595.4
Backlog revenue2
Building 6,269.9 6,330.6 375.2 555.9 1,463.4 1,505.0 5,524.9 6,715.2 13,633.4 15,106.7
Engineering 2,342.5 3,845.5 21.5 3.8 2,364.0 3,849.3
Services 1,258.8 1,714.2 1,258.8 1,714.2
Total backlog revenue 9,871.2 11,890.3 396.7 559.7 1,463.4 1,505.0 5,524.9 6,715.2 17,256.2 20,670.2
	Australia	Asia	Europe	Americas	Total
Jun-15 Jun-16 Jun-15 Jun-16 Jun-15 Jun-16 Jun-15 Jun-16 Jun-15 Jun-16
Backlog realisation (%)
Next 12 months 49 47 69 91 66 71 53 49 52 51
12 - 24 months 24 30 26 7 25 17 25 33 25 29
Beyond 24 months 27 23 5 2 9 12 22 18 23 20
Total 100 100 100 100 100 100 100 100 100 100

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1. New work secured revenue is the total revenue to be earned from projects secured during the year

2. Current year backlog revenue is the total revenue to be earned from projects in future financial years, based on projects secured as at 30 June 2016. Although backlog revenue is realised over several years, the average foreign exchange rate for the current year has been applied to the closing backlog revenue balance in its entirety, as the average rates for later years cannot be predicted

23

LENDLEASE – FY16 FINANCIAL RESULTS

Backlog revenue by region ($b)

Group

Australia

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Book to bill [1] : 1.2
Book to bill [1] : 1.3
14.6 (12.0)
0.8 8.3 (6.3)
20.7
17.3 11.9
9.9
FY15 New work Revenue Other FY16 FY15 New work Revenue FY16
secured realised secured realised
Europe Americas
Book to bill [1] : 1.0
Book to bill [1] : 1.1
1.3 (1.3)
4.5 (4.1)
0.8
6.7
1.5 1.5 5.5
FY15 New work Revenue FY16 FY15 New work Revenue Other FY16
secured realised secured realised
1. Ratio calculated as new work secured over revenue realised
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24

LENDLEASE – FY16 FINANCIAL RESULTS

Backlog realisation by region (%)

Australia

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23%
27%
24% 30%
49% 47%
FY15 FY16
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Next 12 months 12 - 24 months Beyond 24 months

Europe

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----- Start of picture text -----

9% 12%
17%
25%
66% 71%
FY15 FY16
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Next 12 months 12 - 24 months Beyond 24 months

Asia

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----- Start of picture text -----

5% 2%
7%
26%
69% 91%
FY15 FY16
Next 12 months 12 - 24 months Beyond 24 months
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Americas

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18%
22%
25%
33%
53% 49%
FY15 FY16
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Next 12 months 12 - 24 months Beyond 24 months

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25

LENDLEASE – FY16 FINANCIAL RESULTS

Australian market outlook - Engineering ($b)[1]

National major road construction (project commencements, real terms)[2]

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7 Forecast
5.8 5.8
6 5.3 5.5
5.1
5 4.2
4.0
3.8
4 3.3
3.1 3.1
3
2 1.5 1.6 1.3 1.4 1.2
0.6
1
0
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
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National railways construction (project commencements, real terms)

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Mining-Related Non Mining-Related Forecast
12
10
8
6
4
2
0
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
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1. Source: Estimates based on Lendlease Group Research, ABS 2. Major project = toll road or public project > $500 million (activity, not total value)

26

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Investments
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27

LENDLEASE – FY16 FINANCIAL RESULTS

FUM by region ($b)

Group

Australia

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2.3 (0.8) 1.0 (0.2) (0.3) 0.9
2.1
23.6 16.5
21.3
13.8
FY15 Acquired Divested Net Other FY16 FY15 Acquired Divested Net FY16
revaluations revaluations
Asia Europe
0.2 (0.1) 0.2
(0.4)
0.1
(0.4)
5.6
5.3
2.2
1.5
FY15 Acquired Divested Other FY16 FY15 Divested Net Other FY16
revaluations
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28

LENDLEASE – FY16 FINANCIAL RESULTS

Valuation drivers - Retirement Living

Retirement value drivers

Retirement investments[1]

Retirement Valuation drivers	Living FY15	FY16
Long term growth rate	3.7%	3.7%
Discount rate	13.3%	13.3%
Average length of stay - ILUs (years)	11.0	11.0
Number of established units	14,193	13,384
Occupancy	93.3%	93.9%
Units resold	1,082	1,038

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1,580.2
1,488.3
FY15 FY16
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Retirement units

Retirement units by state

	Owned	Owned	Managed/Leased/ Other	Managed/Leased/ Other	Total
Location	Number of villages	Units	Number of villages	Units	Total number of villages	Total units
Qld	12	2,911	3	1,137	15	4,048
NSW	17	3,160			17	3,160
Vic	25	3,974	1	75	26	4,049
SA	3	386			3	386
WA	10	1,611			10	1,611
ACT	2	130			2	130
Total
Retirement Villages	69	12,172	4	1,212	73	13,384

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4,049 4,048
3,160
1,611
386
130
Vic Qld NSW WA SA ACT
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1. Decrease from FY15 to FY16 relates to sale of New Zealand Retirement business

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Other
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30

LENDLEASE – FY16 FINANCIAL RESULTS

Key dates for investors

	Date
FY16 results released to market/final distribution declared	19 August 2016
Securities quoted ex-dividend on the Australian Securities Exchange	24 August 2016
Final distribution record date	25 August 2016
Final distribution payable	14 September 2016
Annual General Meeting	11 November 2016

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31

LENDLEASE – FY16 FINANCIAL RESULTS

Important notice

This presentation (including the appendices) has been prepared in good faith, but no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation (any of which may change without notice). To the maximum extent permitted by law, Lendlease Corporation Limited, its controlled entities including Lendlease Trust (together referred to as the Group) and their respective directors, officers, employees and agents disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence) for any direct or indirect loss or damage which may be suffered through use or reliance on anything contained in or omitted from this presentation.

Each recipient should consult with, and rely solely upon, their own legal, tax, business and/or financial advisors in connection with any decision made in relation to the information contained in this presentation.

Prospective financial information, if any, has been based on current expectations about future events and is, however, subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations described in such prospective financial information.

The Group’s statutory results are prepared in accordance with International Financial Reporting Standards (IFRS). This presentation also includes certain non-IFRS measures in presenting the Group’s results. Certain non-IFRS financial measures have not been subject to audit or review. The Group’s auditors, KPMG, performed agreed upon procedures to ensure consistency of the presentation with the Group’s financial statements.

A reference to FY16 refers to the full year ended 30 June 2016 unless otherwise stated. All figures are in AUD unless otherwise stated.

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