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LENDLEASE GROUP Annual Report 2019

Aug 18, 2019

65243_rns_2019-08-18_21701869-8a0b-41ea-978b-4ed59f7212d0.pdf

Annual Report

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19 August 2019
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Lendlease Group 2019 Full Year Financial and Operational Metrics

Lendlease Group today announced its results for the year ended 30 June 2019. Attached is a data file comprising financial and operational metrics covering FY15 – FY19.

An excel file containing the data is available at: https://www.lendlease.com/au/investor-centre

The data contained in the excel file is attached to this ASX in PDF format.

ENDS

FOR FURTHER INFORMATION, PLEASE CONTACT:

Investors: Media: Justin McCarthy Stephen Ellaway Mob: +61 422 800 321 Mob: +61 417 851 287

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

Group Summary

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Group Summary
FY15 FY16 FY17 FY18 FY19
Unit
Profit and Loss Summary - Core Business1
Revenue A$m 13,298.6 15,105.3 14,382.6 13,287.9 13,414
Segment EBITDA2
Development A$m 386.1 500.2 552.4 673.2 793
Construction A$m 279.0 288.1 271.4 295.8 211
Investments A$m 477.8 457.7 495.3 668.9 489
Total Operating Business EBITDA A$m 1,142.9 1,246.0 1,319.1 1,637.9 1,493
Group Services A$m (156.8) (168.7) (154.4) (140.1) (140)
Group Treasury A$m (19.1) (22.4) (29.8) (35.4) (25)
Group EBITDA A$m 967.0 1,054.9 1,134.9 1,462.4 1,328
Depreciation & Amortisation A$m (79.5) (82.7) (76.5) (82.1) (94)
EBIT A$m 887.5 972.2 1,058.4 1,380.3 1,234
Net Finance Revenue/(Costs) A$m (119.5) (109.4) (97.0) (72.5) (125)
PBT A$m 768.0 862.8 961.4 1,307.8 1,109
Income Tax Benefit/(Expense) A$m (149.1) (164.7) (235.6) (346.9) (305)
External non controlling interests A$m (0.3) 0.1 (0.1) (0.8) -
PAT A$m 618.6 698.2 725.7 960.1 804
Returns and Key Performance Measures - Core Business1
Number of equivalent full time employees no. 12,443 12,162 8,801 8,854 8,787
(ROE) PAT to average securityholders' equity % 15.3% 12.8%
Development ROIC % 9.7% 11.7% 13.7% 13.4% 11.6%
Investments ROIC3 % 14.2% 11.2% 11.7% 15.5% 10.8%
Construction EBITDA Margin % 2.6% 2.4% 2.6% 3.1% 2.2%
EBITDA Mix by Segment - % Operating EBITDA
Development % 33.8% 40.2% 41.9% 41.1% 53.1%
Construction % 24.4% 23.1% 20.6% 18.1% 14.1%
Investments % 41.8% 36.7% 37.5% 40.8% 32.8%
Key Platform Value Drivers
Development Pipeline A$b 44.9 48.8 49.3 71.1 76.1
Construction Backlog4 A$b 17.3 20.7 15.7 15.2 15.6
Funds Under Management A$b 21.3 23.6 26.1 30.1 35.2
Profit After Tax by Segment & Region5
Development A$m 277.2 366.4 397.8 491.9 554
Construction A$m 159.0 190.9 178.8 189.8 141
Investments A$m 408.6 370.7 381.4 493.4 368
Australia A$m 625.1 719.1 746.0 866.1 744
Asia A$m 17.3 (20.3) 13.7 61.6 102
Europe A$m 112.3 150.8 95.4 132.5 68
Americas A$m 90.1 78.4 102.9 114.9 149

Group Summary

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Group Summary
FY15 FY16 FY17 FY18 FY19
Unit
Returns and Key Performance Measures - Total Group
NPAT attributable to securityholders A$m 618.6 698.2 758.6 792.8 467
(EPS) Earnings per stapled security on PAT cents 106.8 120.1 130.1 136.1 82.4
Dividend / Distribution per stapled security cents 54.0 60.0 66.0 69.0 42.0
Dividend / Distribution Payout ratio % 51% 50% 51% 50% 51%
Securities on issue m 580 582 583 574 564
Weighted average number of securities m 579 581 583 583 567
Net asset backing per security A$ 8.90 9.64 10.58 11.17 11.27
Net tangible asset backing per security A$ 6.42 7.16 8.15 8.70 8.69
Security price at period end A$ 15.03 12.60 16.65 19.81 13.00
Number of securityholders no. 56,966 61,521 58,642 55,648 62,454
(ROE) PAT to average securityholders' equity % 12.4% 13.0% 12.9% 12.7% 7.4%
Invested Capital by Segment & Region
Development A$b 3.3 2.9 3.0 4.3 4.8
Investments A$b 3.1 3.2 3.3 3.3 3.6
Australia A$b 5.1 4.8 4.7 4.4 3.6
Asia A$b 0.5 0.5 0.7 0.9 1.2
Europe A$b 0.8 0.8 0.8 1.2 1.7
Americas A$b 0.1 0.4 0.5 1.0 1.4
Total Invested Capital6 A$b 6.9 6.7 7.0 7.6 7.8
Effective Tax Rate7 % 19.4% 19.1% 24.7% 25.6% 24.7%
FX Rates
Income Statement - Period Average
USD A$/USD 0.83 0.73 0.76 0.77 0.71
GBP A$/GBP 0.53 0.50 0.60 0.57 0.55
SGD A$/SGD 1.09 1.01 1.05 1.04 0.97
Balance Sheet - Period End
USD A$/USD 0.77 0.75 0.77 0.74 0.70
GBP A$/GBP 0.49 0.56 0.59 0.56 0.55
SGD A$/SGD 1.04 1.00 1.06 1.01 0.95

Group Summary

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Group Summary
FY15 FY16 FY17 FY18 FY19
Unit
Corporate Strength - Total Group
Total tangible assets A$m 17,514.5 17,146.1 19,439.1 15,542.2 15,721
Cash A$m 750.1 1,008.4 1,249.2 1,177.1 1,290
Borrowings A$m 2,450.3 2,031.3 2,152.4 2,358.5 2,715
Operating cash flow A$m (166.6) 853.0 146.0 72.8 60
Investing cash flow A$m (383.4) 0.6 70.1 221.8 167
Total Operating and Investing cash flow A$m (550.0) 853.6 216.1 294.6 227
Financing cash flow A$m (465.2) (620.4) 8.5 (397.8) (128)
Total cash flow A$m (1,015.2) 233.2 224.6 (103.2) 99
Ratio of current assets to current liabilities times 0.7x 0.7x 0.6x 1.0x 0.9x
Ratio of current assets to current liabilities (excluding resident and accommodation bond liabilities) times 1.2x 1.2x 1.0x 1.0x 0.9x
Net debt to total tangible assets, less cash8 % 10.5% 6.5% 5.0% 8.2% 9.9%
Interest cover9 times 6.6x 8.0x 10.3x 10.7x 8.8x
Average cost of debt % 5.2% 4.6% 4.9% 4.8% 4.0%
Average debt maturity years 3.9 5.3 5.1 4.6 4.8
Balance Sheet - Total Group
Statement of Financial Position
Current Assets
Cash and cash equivalents A$m 750.1 1,008.4 1,249.2 1,177.1 1,290
Loans and receivables A$m 3,631.0 2,785.0 2,749.2 2,670.2 2,050
Inventories A$m 1,980.0 1,923.0 2,152.0 2,369.2 2,238
Current tax assets A$m 42.7 21.6 - - 11
Other financial assets A$m 8.6 50.7 33.0 6.7 97
Other assets A$m 83.2 69.2 77.9 91.0 70
Total current assets A$m 6,495.6 5,857.9 6,261.3 6,314.2 5,756
Non Current Assets
Loans and receivables A$m 320.1 285.4 507.7 787.8 688
Inventories A$m 2,124.2 2,679.9 2,975.4 3,177.1 3,345
Equity accounted investments A$m 1,235.8 1,152.6 834.6 2,626.6 3,452
Investment properties A$m 5,994.9 5,940.7 6,967.4 278.2 501
Other financial assets A$m 625.7 628.8 1,203.3 1,547.8 1,103
Deferred tax assets A$m 305.5 109.5 129.4 120.0 101
Property, plant and equipment A$m 348.8 432.3 425.8 464.7 548
Intangible assets A$m 1,444.7 1,446.8 1,415.1 1,421.4 1,457
Defined benefit plan asset A$m 9.2 7.5 64.3 154.7 140
Other assets A$m 54.7 51.5 69.9 71.1 87
Total non current assets A$m 12,463.6 12,735.0 14,592.9 10,649.4 11,422
Total assets A$m 18,959.2 18,592.9 20,854.2 16,963.6 17,178
Current Liabilities
Trade and other payables A$m 5,036.1 4,328.8 5,578.8 5,769.5 5,724
Resident liabilities A$m 4,080.4 4,119.5 4,573.0 - -
Provisions A$m 328.8 292.4 285.6 329.9 332
Current tax liabilities A$m - - 6.4 10.4 -
Borrowings and financing arrangements A$m 227.3 - 291.9 474.8 225
Other financial liabilities A$m 33.7 83.6 22.0 3.4 6
Total current liabilities A$m 9,706.3 8,824.3 10,757.7 6,588.0 6,287
Non Current Liabilities
Trade and other payables A$m 1,586.0 1,909.4 1,772.1 1,530.7 1,401
Provisions A$m 46.0 70.6 58.4 67.8 45
Borrowings and financing arrangements A$m 2,223.0 2,031.3 1,860.5 1,883.7 2,490
Defined benefit plan liability A$m 68.8 3.4 - - -
Other financial liabilities A$m 32.3 9.7 0.8 0.7 1
Deferred tax liabilities A$m 128.6 129.5 238.2 478.5 597
Total non current liabilities A$m 4,084.7 4,153.9 3,930.0 3,961.4 4,534
Total liabilities A$m 13,791.0 12,978.2 14,687.7 10,549.4 10,821
Net Assets A$m 5,168.2 5,614.7 6,166.5 6,414.2 6,357
Equity
Issued capital A$m 1,256.3 1,276.3 1,289.8 1,296.8 1,300
Treasury securities A$m (89.9) (99.5) (24.7) (44.1) (68)
Reserves10 A$m 91.7 98.0 (15.5) 61.0 105
Retained earnings10 A$m 2,936.0 3,289.6 3,696.8 3,855.1 3,815
Total equity attributable to members of Lendlease Corporation Limited A$m 4,194.1 4,564.4 4,946.4 5,168.8 5,152
Total equity attributable to unitholders of Lendlease Trust A$m 968.0 1,048.6 1,117.0 1,244.5 1,182
Total equity attributable to securityholders A$m 5,162.1 5,613.0 6,063.4 6,413.3 6,334
External non controlling interests A$m 6.1 1.7 103.1 0.9 23
Total equity A$m 5,168.2 5,614.7 6,166.5 6,414.2 6,357

Group Summary

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Group Summary
FY15 FY16 FY17 FY18 FY19
Unit
Cash Flow Statement - Total Group
Cash Flows from Operating Activities
Cash receipts in the course of operations A$m 11,896.7 16,028.4 16,254.6 16,354.3 17,026
Cash payments in the course of operations A$m (11,866.7) (15,154.9) (15,928.7) (16,216.4) (16,902)
Interest received A$m 15.2 12.8 9.9 13.1 13
Interest paid A$m (151.2) (134.8) (120.4) (122.1) (152)
Dividends/distributions received A$m 61.4 90.0 75.4 76.5 105
Income tax received/(paid) in respect of operations A$m (122.0) 11.5 (144.8) (32.6) (30)
Net cash provided by/(used in) operating activities A$m (166.6) 853.0 146.0 72.8 60
Cash Flows from Investing Activities
Sale/redemption of investments A$m 615.0 330.5 164.9 74.4 571
Acquisition of investments A$m (653.0) (563.2) (257.3) (448.9) (378)
Acquisition of/capital expenditure on investment properties A$m (209.2) (25.7) (244.4) (112.4) (53)
Net loan repayments/(drawdowns) associates and joint ventures A$m (22.5) 38.6 5.7 409.7 (22)
Acquisition of consolidated entities (net of cash acquired and acquisition costs) A$m (5.7) - - - -
Disposal of consolidated entities (net of cash disposed and transaction costs) A$m 7.0 382.5 548.4 433.6 266
Disposal of property, plant and equipment A$m 11.7 16.7 13.1 7.9 14
Acquisition of property, plant and equipment A$m (57.4) (132.7) (136.4) (110.3) (165)
Acquisition of intangible assets A$m (67.3) (46.1) (23.9) (32.2) (66)
Other investing activities A$m (2.0) - - - -
Net cash provided by/(used in) investing activities A$m (383.4) 0.6 70.1 221.8 167
Cash Flows from Financing Activities
Proceeds from borrowings A$m 2,276.6 5,327.6 2,800.6 2,021.0 4,640
Repayment of borrowings A$m (2,333.4) (5,626.0) (2,576.8) (1,870.7) (4,347)
Dividends/distributions paid A$m (374.2) (293.2) (337.9) (372.0) (258)
Proceeds from sale of treasury securities A$m - - 106.5 - -
Payments for on market buyback of stapled securities A$m (178.0) (174)
Payments for on market buyback of stapled securities - Dividend Reinvestment Plan A$m (10.1) (11)
Other financing activities A$m (34.2) (28.8) (20.9) (9.6) -
Increase in capital of non controlling interest A$m - - 37.0 21.6 22
Net cash provided by/(used in) financing activities A$m (465.2) (620.4) 8.5 (397.8) (128)
Effect of foreign exchange rate movements on cash and cash equivalents A$m 49.5 25.1 16.2 31.1 14
Net increase/(decrease) in cash and cash equivalents A$m (965.7) 258.3 240.8 (72.1) 113
Cash and cash equivalents at beginning of financial year A$m 1,715.8 750.1 1,008.4 1,249.2 1,177
Cash and cash equivalents at end of financial year A$m 750.1 1,008.4 1,249.2 1,177.1 1,290
Reconciliation to underlying operating cash flow - Total Group
Net cash provided by/(used in) operating activities A$m (166.6) 853.0 146.0 72.8 60
Less: Interest received A$m (15.2) (12.8) (9.9) (13.1) (13)
Add: Interest paid A$m 151.2 134.8 120.4 122.1 152
Add: Income tax (received)/paid in respect of operations A$m 122.0 (11.5) 144.8 32.6 30
Interest and tax paid A$m 258.0 110.5 255.3 141.6 169
Add: Movement in development properties inventory A$m 872.9 460.6 438.4 514.5 (277)
Less: Movement in deferred land payments A$m (641.8) 161.4 74.3 99.8 (99)
Net investment into development inventory A$m 231.1 622.0 512.7 614.3 (376)
Add: Cash proceeds from sell down of development entities A$m - - 291.8 82.9 266
Add: Realised gains on sale of assets A$m 54.1 73.7 48.1 1.2 197
Adjustment from investing cash flow A$m 54.1 73.7 339.9 84.1 463
Underlying operating cash flow A$m 376.6 1,659.2 1,253.9 912.8 316
Group EBITDA A$m 967.0 1,054.9 1,201.8 1,244.8 867
Conversion of underlying operating cash flow to Group EBITDA % 38.9% 157.3% 104.3% 73.3% 36.4%

Group Summary

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Group Summary
FY15 FY16 FY17 FY18 FY19
Unit
Profit and Loss by Segment - Core Business1
Development Revenue A$m 1,875.4 2,543.9 3,433.0 3,204.2 3,355
Construction Revenue A$m 10,936.9 12,032.4 10,356.1 9,656.2 9,680
Australia A$m 5,912.7 6,271.0 4,152.1 3,742.3 4,052
Asia A$m 225.0 334.2 502.6 536.1 401
Europe A$m 1,258.0 1,341.3 1,117.3 679.5 941
Americas A$m 3,541.2 4,085.9 4,584.1 4,698.3 4,286
Investments Revenue A$m 468.0 510.5 566.7 393.6 348
Development EBITDA A$m 386.1 500.2 552.4 673.2 793
Australia A$m 336.8 391.5 497.8 551.3 556
Asia A$m (11.7) (19.1) (13.5) 26.7 121
Europe A$m 66.3 139.5 68.3 110.4 37
Americas A$m (5.3) (11.7) (0.2) (15.2) 79
Construction EBITDA A$m 279.0 288.1 271.4 295.8 211
Australia A$m 152.6 231.8 134.5 194.5 126
Asia A$m (13.5) (5.6) (0.2) 15.0 (1)
Europe A$m 23.0 5.5 31.7 22.7 40
Americas A$m 116.9 56.4 105.4 63.6 46
Investments EBITDA A$m 477.8 457.7 495.3 668.9 489
Australia A$m 329.5 348.5 393.3 482.6 330
Asia A$m 64.3 14.3 35.1 55.3 50
Europe A$m 40.2 35.1 10.2 7.4 9
Americas A$m 43.8 59.8 56.7 123.6 100
Development PAT A$m 277.2 366.4 397.8 491.9 554
Australia A$m 241.4 275.6 348.1 383.6 395
Asia A$m (10.4) (18.7) (11.9) 15.2 79
Europe A$m 48.8 116.4 60.2 103.5 27
Americas A$m (2.6) (6.9) 1.4 (10.4) 53
Construction PAT A$m 159.0 190.9 178.8 189.8 141
Australia A$m 89.3 146.1 92.0 132.5 84
Asia A$m (15.8) (6.4) (2.5) 4.6 (2)
Europe A$m 18.5 4.1 23.5 19.7 31
Americas A$m 67.0 47.1 65.8 33.0 28
Investments PAT A$m 408.6 370.7 381.4 493.4 368
Australia A$m 294.4 297.4 305.9 350.0 265
Asia A$m 43.5 4.8 28.1 41.8 25
Europe A$m 45.0 30.3 11.7 9.3 10
Americas A$m 25.7 38.2 35.7 92.3 68
Profit and Loss by Region - Core Business1
Operating Revenue5 A$m 13,280.3 15,086.8 14,355.8 13,254.0 13,383
Operating EBITDA5 A$m 1,142.9 1,246.0 1,319.1 1,637.9 1,493
Australia A$m 818.9 971.8 1,025.6 1,228.4 1,012
Asia A$m 39.1 (10.4) 21.4 97.0 170
Europe A$m 129.5 180.1 110.2 140.5 86
Americas A$m 155.4 104.5 161.9 172.0 225
Operating Profit after Tax5 A$m 844.8 928.0 958.0 1,175.1 1,063
Australia A$m 625.1 719.1 746.0 866.1 744
Asia A$m 17.3 (20.3) 13.7 61.6 102
Europe A$m 112.3 150.8 95.4 132.5 68
Americas A$m 90.1 78.4 102.9 114.9 149

Group Summary

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Group Summary
FY15 FY16 FY17 FY18 FY19
Unit
Profit and Loss Summary - Non Core
Revenue A$m 2,288.4 3,284.2 3,141
EBITDA A$m 66.9 (217.6) (461)
Depreciation & Amortisation A$m (21.7) (24.5) (28)
EBIT A$m 45.2 (242.1) (489)
Net Finance Revenue/(Costs) A$m 0.4 0.5 -
PBT A$m 45.6 (241.6) (489)
Income Tax Benefit/(Expense) A$m (12.7) 74.3 152
PAT A$m 32.9 (167.3) (337)
Returns and Key Performance Measures - Non Core
EBITDA Margin % 2.9% (6.6%) (14.7%)
Key Platform Value Drivers
Construction Backlog4 A$b 4.9 5.9 5.4
End of sheet

Development

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Development
FY15 FY16 FY17 FY18 FY19
Unit
Profit and Loss
Development Revenue A$m 1,875.4 2,543.9 3,433.0 3,204.2 3,355
Australia A$m 1,508.6 2,034.4 3,142.0 2,855.2 2,712
Asia A$m 1.0 17.5 19.6 67.2 18
Europe A$m 317.6 431.7 203.6 199.1 544
Americas A$m 48.2 60.3 67.8 82.7 81
Development EBITDA A$m 386.1 500.2 552.4 673.2 793
Australia A$m 336.8 391.5 497.8 551.3 556
Asia A$m (11.7) (19.1) (13.5) 26.7 121
Europe A$m 66.3 139.5 68.3 110.4 37
Americas A$m (5.3) (11.7) (0.2) (15.2) 79
Development PAT A$m 277.2 366.4 397.8 491.9 554
Australia A$m 241.4 275.6 348.1 383.6 395
Asia A$m (10.4) (18.7) (11.9) 15.2 79
Europe A$m 48.8 116.4 60.2 103.5 27
Americas A$m (2.6) (6.9) 1.4 (10.4) 53
Development ROIC % 9.7% 11.7% 13.7% 13.4% 11.6%
Development Invested Capital A$b 3.3 2.9 3.0 4.3 4.8
Development Pipeline A$b 44.9 48.8 49.3 71.1 76.1
Development Pipeline
Pipeline - Communities & Retirement A$b 12.1 11.5 14.7 15.1 14.7
Australia1 A$b 12.1 11.5 14.7 14.3 14.1
Asia A$b 0.4 0.4
Europe A$b 0.1 0.1
Americas A$b 0.3 0.1
Pipeline - Urbanisation A$b 32.8 37.3 34.6 55.9 61.2
Australia A$b 14.8 17.5 16.2 15.4 15.2
Asia A$b 5.8 5.9 6.1 6.5 4.6
Europe A$b 9.4 10.5 8.0 29.2 34.0
Americas A$b 2.8 3.4 4.3 4.8 7.4
Pipeline - Infrastructure A$b 0.1 0.2
Americas A$b 0.1 0.2
Total pipeline A$b 44.9 48.8 49.3 71.1 76.1
Australia A$b 26.9 29.0 30.9 29.7 29.3
Asia A$b 5.8 5.9 6.1 6.9 5.0
Europe A$b 9.4 10.5 8.0 29.3 34.1
Americas A$b 2.8 3.4 4.3 5.2 7.7
Communities & Retirement1
Presold no. 2,138 2,903 3,896 3,231 2,276
Remaining no. 53,468 53,820 53,219 49,102 47,762
Total pipeline no. 55,606 56,723 57,115 52,333 50,038
Presold A$b 0.5 0.7 0.9 0.8 0.6
Remaining A$b 11.6 10.8 13.8 14.3 14.1
Total pipeline A$b 12.1 11.5 14.7 15.1 14.7

Development

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Development
FY15 FY16 FY17 FY18 FY19
Unit
Urbanisation
Apartments
In delivery - for sale (presold only) no. 5,073 3,177 3,070 1,881
In delivery - for rent no. 850 1,513 1,533
Remaining no. 20,417 18,325 25,917 27,314
Total pipeline no. 25,490 22,352 30,500 30,728
Commercial
In delivery sqm '000 375 537 486 322
Remaining sqm '000 836 513 1,516 2,099
Total pipeline sqm '000 1,211 1,050 2,002 2,421
Apartments
In delivery - for sale (presold only) A$b 3.3 3.2 1.7
In delivery - for rent A$b 0.5 1.1 1.1
Remaining A$b 17.9 27.1 29.8
Total pipeline A$b 21.7 31.4 32.6
Commercial
In delivery A$b 6.5 7.2 4.9
Remaining A$b 6.4 17.3 23.7
Total pipeline A$b 12.9 24.5 28.6
Major Urbanisation Projects2
Projects no. 12 13 18 20
Gateway cities no. 8 8 10 10
Regional Summary
Communities & Retirement pipeline no. 55,606 56,723 57,115 52,333 50,038
Australia1 no. 51,746 52,863 53,255 49,770 47,700
Asia no. - - - 936 878
Europe no. - - - 1 1
Americas no. 3,860 3,860 3,860 1,626 1,459
Communities & Retirement pipeline A$b 12.1 11.5 14.7 15.1 14.7
Australia1 A$b 12.1 11.5 14.7 14.3 14.1
Asia A$b 0.4 0.4
Europe A$b 0.1 0.1
Americas A$b 0.3 0.1
Apartments pipeline no. 25,960 25,490 22,352 30,500 30,728
Australia no. 14,890 13,905 10,128 9,367 7,985
Asia no. 2,225 2,230 2,755 2,755 2,755
Europe no. 5,315 4,995 4,527 14,210 15,394
Americas no. 3,530 4,360 4,942 4,168 4,594
Urbanisation pipeline A$b 32.8 37.3 34.6 55.9 61.2
Australia A$b 14.8 17.5 16.2 15.4 15.2
Asia A$b 5.8 5.9 6.1 6.5 4.6
Europe A$b 9.4 10.5 8.0 29.2 34.0
Americas A$b 2.8 3.4 4.3 4.8 7.4
Commercial pipeline sqm '000 1,368 1,211 1,050 2,002 2,421
Australia sqm '000 637 604 420 395 378
Asia sqm '000 368 369 308 278 192
Europe sqm '000 311 230 302 1,301 1,799
Americas sqm '000 52 8 20 28 52

Development

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Development
FY15 FY16 FY17 FY18 FY19
Unit
Residential for sale Summary
Australian Communities A$m 965.7 857.2 373.0
Australian Apartments A$m 235.2 48.0 114.1
Asia Apartments A$m 228.0 235.5 71.2
Europe Apartments A$m 218.2 237.7 121.1
Americas Communities A$m 5.1
Americas Apartments A$m 42.0 127.1 175.3
Total Sales A$m 1,689.1 1,505.5 859.8
Australian Communities A$m 817.5 779.8 716.1 991.4 560.6
Australian Apartments A$m 16.6 794.1 1,327.3 911.9 1,574.4
Europe Apartments A$m 313.8 374.1 489.3 247.0 282.1
Americas Communities A$m 5.1
Americas Apartments A$m 208.2
Total Settlements3 A$m 1,147.9 1,948.0 2,532.7 2,150.3 2,630.4
Australian Communities A$m 494.0 697.4 947.0 812.8 625.2
Australian Apartments A$m 3,413.7 3,874.4 2,782.3 1,918.4 458.1
Asia Apartments4 A$m - - 228.0 463.9 570.9
Europe Apartments A$m 1,314.7 1,372.6 849.9 885.3 731.6
Americas Apartments A$m - - 42.0 168.6 150.0
Total Presales A$m 5,222.4 5,944.4 4,849.2 4,249.0 2,535.8
Australian Communities no. 4,118 4,058 4,162 3,247 1,422
Australian Apartments no. 2,531 1,357 321 64 155
Asia Apartments no. - - 210 176 37
Europe Apartments no. 987 304 215 377 175
Americas Communities no. 146
Americas Apartments no. - - 40 60 58
Total Sales no. 7,636 5,719 4,948 3,924 1,993
Australian Communities no. 3,822 3,402 3,060 3,912 2,377
Australian Apartments no. 16 876 1,807 1,056 1,281
Europe Apartments no. 424 327 726 258 296
Americas Communities no. 146
Americas Apartments no. 46
Total Settlements3 no. 4,262 4,605 5,593 5,226 4,146
Australian Communities no. 2,138 2,794 3,896 3,231 2,276
Australian Apartments no. 3,798 4,279 2,793 1,801 675
Asia Apartments4 no. - - 210 386 423
Europe Apartments no. 1,658 1,635 1,124 1,243 1,013
Americas Apartments no. - - 40 100 112
Total Presales no. 7,594 8,708 8,063 6,761 4,499
Sales
Australian Communities Avg price $'000 232 264 262
Australian Apartments Avg price $'000 734 750 736
Asia Apartments Avg price $'000 1,086 1,338 1,924
Europe Apartments Avg price $'000 1,015 631 692
Americas Communities Avg price $'000 35
Americas Apartments Avg price $'000 1,050 2,118 3,022
Settlements3
Australian Communities Avg price $'000 234 253 236
Australian Apartments Avg price $'000 735 864 1,229
Europe Apartments Avg price $'000 674 957 953
Americas Communities Avg price $'000 35
Americas Apartments Avg price $'000 4,526

Development

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Development
FY15 FY16 FY17 FY18 FY19
Unit
Presales
Australian Communities Avg price $'000 243 252 275
Australian Apartments Avg price $'000 996 1,065 679
Asia Apartments Avg price $'000 1,086 1,202 1,350
Europe Apartments Avg price $'000 756 712 722
Americas Apartments Avg price $'000 1,050 1,686 1,339
Retirement Development1
Settlements3 A$m 81.3 - -
Sales A$m 81.3 - -
Settlements3 no. 227 185 176 - -
Sales no. 227 185 176 - -
Avg price Avg price $'000 462 - -
Residential for rent Summary
Europe A$b 0.8 0.8
Americas A$b 0.5 0.5 0.7
Projects in delivery5 A$b 0.5 1.3 1.5
Europe No. buildings 2 2
Americas No. buildings 3 4 3
Projects in delivery No. buildings 3 6 5
Europe No. units 663 663
Americas No. units 850 850 870
Projects in delivery No. units 850 1,513 1,533
Americas A$b 0.3
Total Completions5,6 A$b 0.3
Americas no. units 452
Total Completions6 no. units 452

Development

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FY15 FY16 FY17 FY18 FY19
Unit
Commercial Summary
Australia A$b 0.7 2.5 1.1 -
Asia A$b 2.6 1.3 - -
Europe A$b 1.2 - 0.4 -
New projects in delivery A$b 4.5 3.8 1.5 -
Australia sqm '000 63 134 88 -
Asia sqm '000 113 154 - -
Europe sqm '000 73 - 26 -
New projects in delivery sqm '000 249 288 114 -
Australia No. buildings 2 4 3 -
Asia No. buildings 4 1 - -
Europe No. buildings 2 - 1 -
New projects in delivery No. buildings 8 5 4 -
Australia A$b 1.3 2.1 0.7 0.9
Asia A$b 2.1
Europe A$b 1.1 -
Total Completions A$b 1.3 2.1 1.8 3.0
Australia sqm '000 100 109 63 81
Asia sqm '000 83
Europe sqm '000 73 -
Total Completions sqm '000 100 109 136 164
Australia No. buildings 2 2 2 3
Asia No. buildings 3
Europe No. buildings 2 -
Total Completions No. buildings 2 2 4 6
Infrastructure
Americas no. 288 138 218
Telecommunications Towers no. 288 138 218
End of sheet

Construction

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Construction
FY15 FY16 FY17 FY18 FY19
Unit
Profit and Loss - Core Business1
Construction Revenue A$m 10,936.9 12,032.4 10,356.1 9,656.2 9,680
Australia A$m 5,912.7 6,271.0 4,152.1 3,742.3 4,052
Asia A$m 225.0 334.2 502.6 536.1 401
Europe A$m 1,258.0 1,341.3 1,117.3 679.5 941
Americas A$m 3,541.2 4,085.9 4,584.1 4,698.3 4,286
Construction EBITDA A$m 279.0 288.1 271.4 295.8 211
Australia A$m 152.6 231.8 134.5 194.5 126
Asia A$m (13.5) (5.6) (0.2) 15.0 (1)
Europe A$m 23.0 5.5 31.7 22.7 40
Americas A$m 116.9 56.4 105.4 63.6 46
Construction PAT A$m 159.0 190.9 178.8 189.8 141
Australia A$m 89.3 146.1 92.0 132.5 84
Asia A$m (15.8) (6.4) (2.5) 4.6 (2)
Europe A$m 18.5 4.1 23.5 19.7 31
Americas A$m 67.0 47.1 65.8 33.0 28
Construction EBITDA Margin % 2.6% 2.4% 2.6% 3.1% 2.2%
Australia % 2.6% 3.7% 3.2% 5.2% 3.1%
Asia % (6.0%) (1.7%) - 2.8% (0.2%)
Europe % 1.8% 0.4% 2.8% 3.3% 4.3%
Americas % 3.3% 1.4% 2.3% 1.4% 1.1%
Total Segment - Core Business1
Revenue
Total A$m 10,936.9 12,032.4 10,356.1 9,656.2 9,680
New Work Secured2
Building A$b 9.2 10.8 11.2 10.0 9.9
Engineering A$b 1.7 2.8
Services A$b 0.9 1.0
Total A$b 11.8 14.6 11.2 10.0 9.9
% of internal to total major project3 backlog % 18% 20% 19%
Backlog revenue2
Building A$b 13.7 15.2 15.7 15.2 15.6
Engineering A$b 2.3 3.8
Services A$b 1.3 1.7
Total A$b 17.3 20.7 15.7 15.2 15.6
Book to bill
Total ratio 1.1 1.2 1.1 1.0 1.0
Backlog realisation4
Next 12 months % 52% 51% 56% 56% 54%
12 - 24 months % 25% 29% 29% 32% 24%
Beyond 24 months % 23% 20% 15% 12% 22%

Construction

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FY15 FY16 FY17 FY18 FY19
Unit
Australia - Core Business1
Revenue
Total A$m 5,912.7 6,271.0 4,152.1 3,742.3 4,052
New Work Secured2
Building A$b 4.0 4.5 3.9 4.4 4.5
Engineering A$b 1.7 2.8
Services A$b 0.9 1.0
Total A$b 6.6 8.3 3.9 4.4 4.5
Backlog revenue2
Building A$b 6.3 6.4 6.3 6.5 6.9
Engineering A$b 2.3 3.8
Services A$b 1.3 1.7
Total A$b 9.9 11.9 6.3 6.5 6.9
Book to bill
Total ratio 1.1 1.3 0.9 1.2 1.1
Backlog realisation4
Next 12 months % 49% 47% 56% 56% 47%
12 - 24 months % 24% 30% 30% 32% 25%
Beyond 24 months % 27% 23% 14% 12% 28%
Asia
Revenue
Total A$m 225.0 334.2 502.6 536.1 401
New Work Secured2
Building A$b 0.4 0.5 0.8 0.7 0.5
Total A$b 0.4 0.5 0.8 0.7 0.5
Backlog revenue2
Building A$b 0.4 0.6 0.8 0.9 0.8
Total A$b 0.4 0.6 0.8 0.9 0.8
Book to bill
Total ratio 2.6 1.5 1.6 1.3 1.2
Backlog realisation4
Next 12 months % 69% 91% 69% 42% 65%
12 - 24 months % 26% 7% 2% 57% 30%
Beyond 24 months % 5% 2% 29% 1% 5%

Construction

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FY15 FY16 FY17 FY18 FY19
Unit
Europe
Revenue
Total A$m 1,258.0 1,341.3 1,117.3 679.5 941
New Work Secured2
Building A$b 1.6 1.3 0.7 1.3 1.2
Total A$b 1.6 1.3 0.7 1.3 1.2
Backlog revenue2
Building A$b 1.5 1.5 0.8 1.5 1.7
Total A$b 1.5 1.5 0.8 1.5 1.7
Book to bill
Total ratio 1.3 1.0 0.6 1.9 1.3
Backlog realisation4
Next 12 months % 66% 71% 66% 56% 58%
12 - 24 months % 25% 17% 28% 35% 28%
Beyond 24 months % 9% 12% 6% 9% 14%
Americas
Revenue
Total A$m 3,541.2 4,085.9 4,584.1 4,698.3 4,286
New Work Secured2
Building A$b 3.2 4.5 5.8 3.6 3.7
Total A$b 3.2 4.5 5.8 3.6 3.7
Backlog revenue2
Building A$b 5.5 6.7 7.8 6.3 6.2
Total A$b 5.5 6.7 7.8 6.3 6.2
Book to bill
Total ratio 0.9 1.1 1.3 0.8 0.9
Backlog realisation4
Next 12 months % 53% 49% 53% 59% 59%
12 - 24 months % 25% 33% 31% 27% 21%
Beyond 24 months % 22% 18% 16% 14% 20%

Construction

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Construction
FY15 FY16 FY17 FY18 FY19
Unit
By Region & Type - Core Business1
Revenue
Total A$m 10,936.9 12,032.4 10,356.1 9,656.2 9,680
Australia A$m 5,912.7 6,271.0 4,152.1 3,742.3 4,052
Asia A$m 225.0 334.2 502.6 536.1 401
Europe A$m 1,258.0 1,341.3 1,117.3 679.5 941
Americas A$m 3,541.2 4,085.9 4,584.1 4,698.3 4,286
New Work Secured2
Building A$b 9.2 10.8 11.2 10.0 9.9
Australia A$b 4.0 4.5 3.9 4.4 4.5
Asia A$b 0.4 0.5 0.8 0.7 0.5
Europe A$b 1.6 1.3 0.7 1.3 1.2
Americas A$b 3.2 4.5 5.8 3.6 3.7
Engineering A$b 1.7 2.8
Australia A$b 1.7 2.8
Services A$b 0.9 1.0
Australia A$b 0.9 1.0
Total A$b 11.8 14.6 11.2 10.0 9.9
Australia A$b 6.6 8.3 3.9 4.4 4.5
Asia A$b 0.4 0.5 0.8 0.7 0.5
Europe A$b 1.6 1.3 0.7 1.3 1.2
Americas A$b 3.2 4.5 5.8 3.6 3.7
Backlog revenue2
% of internal to total major project3 backlog % 18% 20% 19%
Building A$b 13.7 15.2 15.7 15.2 15.6
Australia A$b 6.3 6.4 6.3 6.5 6.9
Asia A$b 0.4 0.6 0.8 0.9 0.8
Europe A$b 1.5 1.5 0.8 1.5 1.7
Americas A$b 5.5 6.7 7.8 6.3 6.2
Engineering A$b 2.3 3.8
Australia A$b 2.3 3.8
Services A$b 1.3 1.7
Australia A$b 1.3 1.7
Total A$b 17.3 20.7 15.7 15.2 15.6
Australia A$b 9.9 11.9 6.3 6.5 6.9
Asia A$b 0.4 0.6 0.8 0.9 0.8
Europe A$b 1.5 1.5 0.8 1.5 1.7
Americas A$b 5.5 6.7 7.8 6.3 6.2

Construction

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FY15 FY16 FY17 FY18 FY19
Unit
Backlog realisation4
Next 12 months % 52% 51% 56% 56% 54%
Australia % 49% 47% 56% 56% 47%
Asia % 69% 91% 69% 42% 65%
Europe % 66% 71% 66% 56% 58%
Americas % 53% 49% 53% 59% 59%
12 - 24 months % 25% 29% 29% 32% 24%
Australia % 24% 30% 30% 32% 25%
Asia % 26% 7% 2% 57% 30%
Europe % 25% 17% 28% 35% 28%
Americas % 25% 33% 31% 27% 21%
Beyond 24 months % 23% 20% 15% 12% 22%
Australia % 27% 23% 14% 12% 28%
Asia % 5% 2% 29% 1% 5%
Europe % 9% 12% 6% 9% 14%
Americas % 22% 18% 16% 14% 20%
Profit and Loss - Non Core
Revenue A$m 2,288.4 3,284.2 3,141
EBITDA A$m 66.9 (217.6) (461)
PAT A$m 32.9 (167.3) (337)
EBITDA Margin % 2.9% (6.6%) (14.7%)
Total Segment - Non Core
New Work Secured2
Engineering A$b 1.0 3.5 2.0
Services A$b 1.0 0.8 1.0
Total A$b 2.0 4.3 3.0
Backlog revenue2
Engineering A$b 3.1 4.2 3.8
Services A$b 1.8 1.7 1.6
Total A$b 4.9 5.9 5.4
Book to bill
Total ratio 0.9 1.3 1.0
Backlog realisation4
Next 12 months % 59% 49% 52%
12 - 24 months % 25% 25% 27%
Beyond 24 months % 16% 26% 21%
End of sheet

Investments

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Investments
FY15 FY16 FY17 FY18 FY19
Unit
Profit and Loss
Investments Revenue A$m 468.0 510.5 566.7 393.6 348
Australia A$m 322.3 359.7 447.2 274.3 210
Asia A$m 45.5 54.9 52.0 48.7 63
Europe A$m 48.0 25.1 7.9 21.6 13
Americas A$m 52.2 70.8 59.6 49.0 62
Investments EBITDA A$m 477.8 457.7 495.3 668.9 489
Australia A$m 329.5 348.5 393.3 482.6 330
Asia A$m 64.3 14.3 35.1 55.3 50
Europe A$m 40.2 35.1 10.2 7.4 9
Americas A$m 43.8 59.8 56.7 123.6 100
Investments PAT A$m 408.6 370.7 381.4 493.4 368
Australia A$m 294.4 297.4 305.9 350.0 265
Asia A$m 43.5 4.8 28.1 41.8 25
Europe A$m 45.0 30.3 11.7 9.3 10
Americas A$m 25.7 38.2 35.7 92.3 68
Investments EBITDA by activity
Ownership interests A$m 364 350 379 536 345
Operating earnings A$m 114 108 116 133 144
Investments ROIC1 % 14.2% 11.2% 11.7% 15.5% 10.8%
Investments Invested Capital A$b 3.1 3.2 3.3 3.3 3.6
Operational Metrics (Investments Segment)
Investments
Co-investments A$m 1,251.6 1,380.2 1,457.1 1,742.6 1,702
Australia A$m 814.0 974.7 1,139.7 1,375.1 1,001
Asia A$m 361.5 339.8 317.4 367.5 701
Europe A$m 76.1 65.7 - - -
Americas A$m - - - - -
Retirement - Australia A$m 1,580.2 1,488.3 1,710.7 1,303.0 1,397
Other A$m 130.5 124.6 160.8 329.2 576
Australia A$m 15.2 15.2 15.2 15.2 115
Asia A$m - - - - 7
Europe A$m 6.1 - - - 40
Americas A$m 109.2 109.4 145.6 314.0 414
Total Investments A$m 2,962.3 2,993.1 3,328.6 3,374.8 3,675
Investments by Region
Australia A$m 2,409.4 2,478.2 2,865.6 2,693.3 2,513
Asia A$m 361.5 339.8 317.4 367.5 708
Europe A$m 82.2 65.7 - - 40
Americas A$m 109.2 109.4 145.6 314.0 414
Funds Under Management
Total A$b 21.3 23.6 26.1 30.1 35.2
Australia A$b 13.8 16.5 19.3 22.4 24.8
Asia A$b 5.3 5.6 5.4 6.3 8.2
Europe A$b 2.2 1.5 1.4 1.4 1.5
Americas A$b - - - - 0.7

Investments

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Investments
FY15 FY16 FY17 FY18 FY19
Unit
Retail and Office2 Assets Under Management
Number of retail centres and office buildings no. 22 22 22 22 25
Australia no. 16 16 16 16 16
Asia no. 4 4 4 4 7
Europe no. 2 2 2 2 2
Americas no. - - - - -
AUM A$b 11.4 11.7 12.2 12.7 15.4
Australia A$b 6.1 6.4 7.2 7.3 7.5
Asia A$b 4.3 4.4 4.2 4.6 7.2
Europe A$b 1.0 0.9 0.8 0.8 0.7
Americas A$b - - - - -
GLA under management sqm '000 1,177.4 1,158.7 1,201.5 1,172.0 1,296.2
Australia sqm '000 740.9 722.2 747.3 744.4 785.5
Asia sqm '000 294.8 294.8 312.5 285.9 369.0
Europe sqm '000 141.7 141.7 141.7 141.7 141.7
Americas sqm '000 - - - - -
Retirement3
Villages - owned
Australia no. 74 69 71 71 72
Villages - managed/leased/other
Australia no. 4 4 - - -
Total number of villages
Australia no. 78 73 71 71 72
Units - owned
Australia no. 12,981 12,172 12,626 12,717 12,785
Units - managed/leased/other
Australia no. 1,212 1,212 - - -
Total number of units
Australia no. 14,193 13,384 12,626 12,717 12,785
Number of resale units
Australia no. 1,082 1,038 939 694 842
Long term growth rate
Australia % 3.7% 3.7% 3.6% 3.5% 3.5%
Discount rate
Australia % 13.3% 13.3% 13.0% 12.3% 12.3%
Pipeline
Australia no. 4,422 3,829
Pipeline
Australia A$b 1.6 1.8
Sales/Settlements4
Australia no. 144 150
Sales/Settlements4
Australia A$m 72.3 86.0
Sales/Settlements4
Australia Avg price $'000 502 573

Investments

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Investments
FY15 FY16 FY17 FY18 FY19
Unit
Infrastructure
AUM A$b 13.3
Americas A$b 13.3
Units under management no. 54,205 53,055 53,105 52,595 52,214
Americas no. 54,205 53,055 53,105 52,595 52,214
Telecommunications Towers no. 135 221 308
Americas no. 135 221 308
Australia
FUM A$b 13.8 16.5 19.3 22.4 24.8
Retail AUM
Number of retail centres no. 16 16 16 16 16
AUM A$b 6.1 6.4 7.2 7.3 7.5
GLA under management sqm '000 740.9 722.2 747.3 744.4 785.5
Investments
Co-investments A$m 814.0 974.7 1,139.7 1,375.1 1,001
Retirement A$m 1,580.2 1,488.3 1,710.7 1,303.0 1,397
Other A$m 15.2 15.2 15.2 15.2 115
Total A$m 2,409.4 2,478.2 2,865.6 2,693.3 2,513
Retirement3
Villages - owned no. 74 69 71 71 72
Villages - managed/leased/other no. 4 4 - - -
Total number of villages no. 78 73 71 71 72
Units - owned no. 12,981 12,172 12,626 12,717 12,785
Units - managed/leased/other no. 1,212 1,212 - - -
Total number of Units no. 14,193 13,384 12,626 12,717 12,785
Number of resale units no. 1,082 1,038 939 694 842
Long term growth rate % 3.7% 3.7% 3.6% 3.5% 3.5%
Discount rate % 13.3% 13.3% 13.0% 12.3% 12.3%
Pipeline no. 4,422 3,829
Pipeline A$b 1.6 1.8
Sales/Settlements4 no. 144 150
Sales/Settlements4 A$m 72.3 86.0
Sales/Settlements4 Avg price $'000 502 573
Asia
FUM A$b 5.3 5.6 5.4 6.3 8.2
Retail and Office2 AUM
Number of retail centres and office buildings no. 4 4 4 4 7
AUM A$b 4.3 4.4 4.2 4.6 7.2
GLA under management sqm '000 294.8 294.8 312.5 285.9 369
Investments
Co-investments A$m 361.5 339.8 317.4 367.5 701
Other A$m 7
Total A$m 361.5 339.8 317.4 367.5 708

Investments

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Investments
FY15 FY16 FY17 FY18 FY19
Unit
Europe
FUM A$b 2.2 1.5 1.4 1.4 1.5
Retail AUM
Number of retail centres no. 2 2 2 2 2
AUM A$b 1.0 0.9 0.8 0.8 0.7
GLA under management sqm '000 141.7 141.7 141.7 141.7 141.7
Investments
Co-investments A$m 76.1 65.7 - - -
Other A$m 6.1 - - - 40
Total A$m 82.2 65.7 - - 40
Americas
FUM A$b 0.7
Investments
Other A$m 109.2 109.4 145.6 314.0 414
Total A$m 109.2 109.4 145.6 314.0 414
Infrastructure
AUM A$b 13.3
Units under management no. 54,205 53,055 53,105 52,595 52,214
Telecommunications Towers no. 135 221 308
End of sheet

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Funds Under Management

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FY15 FY16 FY17 FY18 FY19
Unit Fund Type Asset Class
Australia
Funds Under Management
Australian Prime Property Fund Retail A$b Core Retail 4.6 5.0 5.2 5.4 5.7
Australian Prime Property Fund Commercial A$b Core Office 2.5 2.9 3.8 4.6 5.1
Australian Prime Property Fund Industrial A$b Core Industrial 0.8 0.9 0.8 0.9 1.0
Lendlease Sub Regional Retail Fund A$b Core Retail 0.6 0.6 0.6 0.6 0.6
Lendlease Core Plus Fund A$b Core Plus Various 0.1 - - - -
Lendlease Communities Fund 1 A$b Value Add Residential - - - - -
Lendlease Real Estate Partners New Zealand A$b Core Retail 0.2 0.2 0.3 0.3 0.3
Lendlease Retail Partners – Australia Fund A$b Core Plus Retail 0.1 - - - -
Lendlease International Towers Sydney Trust A$b Core Office 2.3 3.2 3.5 4.1 4.6
Lendlease Public Infrastructure Investment Company A$b Core Social Infrastructure - 0.4 0.4 0.4 0.4
Lendlease One International Towers Sydney Trust A$b Core Office 0.9 1.3 2.0 2.5 2.7
Managed Investment Mandates A$b Core Various 1.7 2.0 2.7 3.6 4.4
Total FUM A$b 13.8 16.5 19.3 22.4 24.8
Asia
Funds Under Management
Parkway Parade Partnership Limited S$b Core Plus Retail 1.2 1.2 1.3 1.4 1.4
Lendlease Jem Partners Fund Limited S$b Core Retail 0.5 0.5 0.5 0.5 0.6
Paya Lebar Quarter S$b Value Add Retail and Office 1.3 1.4 1.5 1.9 3.1
Lendlease Asian Retail Investment Fund (ARIF) S$b Core Retail 2.5 2.5 2.4 2.6 2.7
Total FUM S$b 5.5 5.6 5.7 6.4 7.8
Europe
Funds Under Management
Lendlease Retail LP £b Core Retail 0.8 0.9 0.8 0.7 0.6
Lendlease PFI/PPP Infrastructure Fund LP (UKIF) £b Core Infrastructure 0.2 - - - -
LRIP LP £b Core Residential 0.1 0.2
Total FUM £b 1.0 0.9 0.8 0.8 0.8
Americas
Funds Under Management
Lendlease Americas Residential Partnership US$b Value Add Residential 0.5
Total FUM US$b 0.5
End of sheet

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Legend & Definitions

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Legend

Grey highlighted cell Green highlighted cell 2H numbers included in document Rounding

Data is not included in this data file because it was not previously disclosed. Not applicable.

Note: All 2H information contained in the document is derived via calculation Note: Numbers disclosed are subject to rounding

Definition

Term

Backlog includes Group owned, joint venture and managed projects. The actual number of units for any particular project can vary as planning approvals are obtained.

Backlog units

Book to Bill Ratio calculated as new work secured over revenue realised. Co-investment The total market value of Lendlease equity invested across Lendlease managed funds. Represents the Group's assessment of the market value. Commercial backlog sqm Represents net developable land in relation to master-planned urban communities and net developable floor space for other developments. The actual net developable land area and floor space for any particular project can vary as planning approvals are obtained. Construction backlog realisation The proportion of construction backlog revenue which is expected to be earned across future periods. Construction backlog revenue Current year construction backlog revenue is the total revenue to be earned in future periods. Development pipeline Estimated remaining end value of all of the Group’s secured development projects as at period end; Includes 100% of joint venture projects and therefore will not necessarily correlate with the Group’s Profit after Tax. Distribution payout ratio Distribution divided by Profit after Tax. Distribution per security For the full year (FY) reflects the amount of interim and final distribution per stapled security from the Company / Trust. For the half year (1H) reflects the amount of interim distribution per stapled security from the Company / Trust. Earnings per security Profit after Tax divided by the weighted average number of securities on issue during the period (including treasury securities). EBITDA Earnings before interest, tax, depreciation and amortisation. Effective tax rate Income tax expense as a percentage of profit before tax. Funds under management (FUM) Total market value of investments across Lendlease managed funds. Gearing Net debt to total tangible assets, less cash. GLA under management (sqm) Represents the gross lettable area, with the exception of Asia which represents the net lettable area of the centres. Invested capital Represents security holder equity plus net debt. Invested equity Invested equity refers to the contributed equity for each project. Investments Includes equity invested in Lendlease managed funds and direct investment in property and property related assets. Represents the Group’s assessment of market value. Investments - operating earnings EBITDA Earnings primarily derived from the investment management platform and the management of US Military Housing operations. Investments - ownership interests EBITDA Returns derived from investments, the Group's Retirement investment, US Military Housing equity investment and infrastructure investment. Market capitalisation The number of securities on issue multiplied by the security price at period end. Net debt Borrowings, including certain other financial liabilities, less cash. New work secured revenue Estimated revenue to be earned from construction contracts secured during the period. New work is secured and forms part of construction backlog revenue when formal contracts are signed. Presales ($) Includes 100 per cent of joint venture projects and therefore will not necessarily correlate with the Group’s Profit after Tax.

The total market value of Lendlease equity invested across Lendlease managed funds. Represents the Group's assessment of the market value.

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Legend & Definitions

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Legend

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Data is not included in this data file because it was not previously disclosed. Not applicable.

Note: All 2H information contained in the document is derived via calculation Note: Numbers disclosed are subject to rounding

Presales (units) Profit after tax (PAT)

Public Private Partnerships (PPP)

Units that have been sold and not yet settled. Includes units sold but not yet in delivery.

  • Profit after Tax attributable to securityholders, determined in accordance with Australian Accounting Standards.

A joint procurement arrangement for infrastructure development contracts between the public and private sectors.

  • Return on equity (ROE) Full year (FY) ROE is calculated using the annual statutory Profit after Tax attributable to securityholders divided by the arithmetic average of beginning, half and year end securityholders' equity. Half year (1H) ROE is calculated on an annualised basis using the half year statutory Profit after Tax attributable to securityholders divided by the arithmetic average of beginning and half year end securityholders' equity.

Return on invested capital (ROIC) Full year (FY) ROIC is calculated using the annual Profit after Tax divided by the arithmetic average of beginning, half and year end invested capital.

Half year (1H) ROIC is calculated on an annualised basis using the half year Profit after Tax divided by the arithmetic average of beginning and half year end invested capital.

Settlements (units)

  • Apartments - units cash settled in the period on completed units in Australia, Europe and Americas, and units which have reached practical completion in Asia. Communities & Retirement - units settled in the period on completed land lots or units. Commercial - buildings that have reached practical completion during the period.

Urbanisation pipeline

Weighted average number of securities

Estimated remaining end value of all of the Group’s secured development projects (excluding Communities and Retirement projects) as at period end; Includes 100% of joint venture projects and therefore will not necessarily correlate with the Group’s Profit after Tax.

The time weighted number of securities outstanding during the period.

Footnotes

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Group Summary

  1. From 1H17, comparatives have been restated to exclude the Engineering and Services business following the decision that it is no longer a required part of the Group's strategy. From 2H19, internal construction margin has been reclassifed from the Construction segment to the Development segment.

  2. Lendlease adopted a revised segment reporting structure with the release of its FY16 results, transitioning from four reporting segments: Development; Infrastructure Development; Construction; and Investment Management, to three reporting segments: Development; Construction; and Investments. Restated historical financial information for the revised segment reporting structures for the reporting periods 1H14 to 1H16 was prepared. More information can be found in the ASX Announcement dated 27 July 2016.

  3. FY16 Investments ROIC restated reflecting inclusion of half year end invested capital in calculation.

  4. Rounded to the nearest $100m.

  5. Excludes Corporate.

  6. Total Invested Capital includes Corporate.

  7. Effective Tax Rate is nonmeaningful in 1H19 due to the $500m pre-tax impact from losses expected to be incurred on underperforming Engineering projects.

  8. Net debt and gross borrowings include certain other financial liabilities.

  9. 1H19 and FY19 interest cover has been adjusted to exclude the $500m pre-tax impact from losses expected to be incurred on underperforming Engineering projects.

  10. 1H17 and FY17 restated reflecting the impact of the first time adoption of AASB 9 Financial Instruments.

Development

  1. Following sale of 25% of Australia's Retirement Living business to APG in HY18 and Lendlease’s remaining 75% investment shifting into Equity Accounted Investments on the Balance Sheet, operational and financial metrics for the Development component were included in the Investments segment.

  2. Major Urbanisation Projects are development projects with an estimated development end value greater than A$1bn.

  3. On adoption of AASB 15 from 1 July 2018, the recognition point of revenue (and associated units) on residential for sale development properties changed to settlement in Australia, Europe and Americas. Prior to the adoption of AASB 15, the recognition point of revenue (and associated units) was aligned with practical completion.

  4. Revenue in Asia on Apartments for Sale is recognised on a percentage complete basis. Recording of settlements and the associated presales run-off within this schedule are aligned with practical completion.

  5. Represents total estimated development end value.

  6. Aligned with practical completion of the apartment for rent buildings.

Footnotes

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Construction

  1. From 1H17, comparatives have been restated to exclude the Engineering and Services business following the decision that it is no longer a required part of the Group's strategy. From 2H19, internal construction margin has been reclassifed from the Construction segment to the Development segment.

  2. Rounded to the nearest $100m. Between 1H15 to FY17 rounding adjustments of $0.1b have been reallocated between Building and Engineering in order to report the Engineering and Services business as non core.

  3. Includes all Construction projects with backlog greater than $100m.

  4. 1H backlog realisation is broken down into the following periods: next 6 months; 6-18 months; and beyond 18 months.

Investments

  1. FY16 Investments ROIC restated reflecting inclusion of half year end invested capital in calculation.

  2. Office product has been included from FY19 onwards.

  3. Following sale of 25% of Australia's Retirement Living business to APG in HY18 and Lendlease’s remaining 75% investment shifting into Equity Accounted Investments on the Balance Sheet, operational and financial metrics for the Development component were included in the Investments segment.

  4. On adoption of AASB 15 from 1 July 2018, the recognition point of revenue (and associated units) on residential for sale development properties changed to settlement in Australia, Europe and Americas. Prior to the adoption of AASB 15, the recognition point of revenue (and associated units) was aligned with practical completion.

Important Notice

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This document has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) (Lendlease ) in good faith. Neither Lendlease (including any of its controlled entities), nor Lendlease Trust (together referred to as the Lendlease Group) makes any representation or warranty, express or implied, as to the accuracy, completeness, adequacy or reliability of any statements, estimates, opinions or other information contained in this document (any of which may change without notice). To the maximum extent permitted by law, Lendlease, the Lendlease 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, howsoever arising, through use or reliance on anything contained in or omitted from this document.

This document does not contain any new information but is a compilation of material from Lendlease Group’s results and previously disclosed reports and presentations. Review of this material does not replace the need to review the Lendlease Group results and other previously disclosed reports and presentations for context and information included in those documents.

This document has been prepared without regard to the specific investment objectives, financial situation or needs of any recipient of 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.

Lendlease Group’s statutory results are prepared in accordance with International Financial Reporting Standards (IFRS). This document also includes material that is not included in Lendlease Group’s statutory results and contains non-IFRS measures. Material that is not included in Lendlease Group’s statutory results has not been subject to audit. Lendlease Group’s auditors, KPMG, performed agreed upon procedures to ensure consistency of this document with Lendlease Group’s statutory results, other publicly disclosed material and management reports.

This document has been released on the Lendlease website as an excel spreadsheet and the full year data on the ASX platform as a PDF document.