LENDLEASE GROUP — Annual Report 2019

Aug 18, 2019

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19 August 2019
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Lendlease Group 2019 Full Year Results Announcement, Presentation and Appendix

Lendlease Group today announced its results for the year ended 30 June 2019. Attached is the FY19 Results Announcement, Presentation and Appendix.

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

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 201922 August 2018
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Lendlease’s core business strengthens with ~$100 billion development pipeline

For the full year ended 30 June 2019:

• Profit after Tax of $467 million and earnings per stapled security of 82.4 cents

• Full year distributions of 42 cents per stapled security

Non core business (Engineering and Services):

• After tax loss of $337 million

• Sale process underway

Core business:

• Profit after Tax of $804 million, Return on Equity of 12.8 per cent[1]

• Development pipeline approaching $100 billion[2]

• Growth in Funds Under Management (FUM) of 17 per cent[3] to $35.2 billion

Strategic initiatives:

• Urbanisation:

• ̶ Secured three major urbanisation projects in Milan, Chicago and Sydney

• ̶ c.$20 billion project in the San Francisco Bay Area secured post balance date

• ̶ Preferred on two projects in London and Birmingham valued at c.$17 billion

• Capital partnerships:

• ̶ US residential investment partnership with US$1 billion equity commitment

• ̶ New asset class for Investments platform following US$1 billion[4] data centre partnership

As announced at the HY19 results, a review of Engineering and Services determined those operations as non core.

Group Chief Executive Officer and Managing Director, Steve McCann, said Lendlease was disappointed with the performance of the Non core operations in FY19 but emphasised the strong position of its core business.

“It was a difficult year for the Group with the provision taken in the first half for underperforming Engineering projects impacting the overall result. As the separation process progresses, we remain committed to delivering the best possible outcome for our clients, employees and securityholders,” said Mr McCann.

1 Return on Equity is calculated using the Profit after Tax divided by the arithmetic average of beginning, half and year end securityholders’ equity.

2 Includes project secured post balance date.

3 Comparative period 30 June 2018.

4 Equity commitment of $500m combined with target leverage.

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 Telephone +61 2 9236 6111 Exchange Place, 300 Barangaroo Avenue Facsimile +61 2 9252 2192 Barangaroo NSW 2000 Australia lendlease.com

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19 August 201922 August 2018
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“We are very pleased with the continued success of our urbanisation strategy, with our development pipeline now approaching $100 billion in project value underpinning a very strong long term outlook.”

Non core business update

The result for the Non core business includes a $500 million pre tax provision for underperforming projects that was brought to account in the first half. The status of the entire Engineering portfolio has been reviewed as part of the year end process. This review has confirmed that the level of provisioning is appropriate.

As part of the separation, a sale process has been initiated for Engineering and Services, which has generated a good level of interest. Several parties are currently undertaking detailed due diligence.

The previously announced restructuring cost estimate of $450 million - $550 million pre tax remains appropriate. These restructuring costs may include implementation costs such as technology and systems, employee and advisory costs, and potential costs or indemnities to cover concluding existing customer contracts. The restructuring cost estimate excludes any anticipated revenue from ongoing operations or proceeds received for the business. In the second half of FY19, $15 million was expensed relating entirely to implementation costs.

FY19 Result – Core business

Lendlease Group CEO and Managing Director, Steve McCann noted the strategy of expanding the Group’s urbanisation platform into international gateway cities has led to significant origination success.

“Broadening our urbanisation expertise into targeted international gateway cities has driven strong growth in the Group’s long dated development pipeline, with some tremendous wins from both government and private sector clients.”

The Group added three major urbanisation projects to its pipeline during the year in the cities of Milan, Chicago and Sydney. Post balance date, the Group secured an urbanisation project in the San Francisco Bay Area. These four projects have a combined estimated end development value of approximately $27 billion, cementing the Group’s position as a global leader in transforming urban precincts.

“Being chosen as the development partner for these transformational projects across numerous gateway cities is a strong endorsement of our urbanisation capabilities, which are increasingly being recognised as world leading,” Mr McCann said.

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 201922 August 2018
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While this is important for the future, the growing international pipeline is already delivering tangible results, with significant contributions in the year from the Group’s projects in Asia and the Americas.

Completion of the office precinct at Paya Lebar Quarter in Singapore generated a substantial development profit and now contributes approximately $2 billion to FUM. In addition, the recently formed residential investment partnerships in the UK and US have added $1 billion in FUM.

There were 1,623 residential for sale apartment settlements in the year, up significantly on the prior year. Darling Square, Sydney; Victoria Harbour, Melbourne; and Elephant Park, London accounted for the large majority of these settlements. In addition, the Group completed its first ever residential for rent apartment building, The Cooper at Southbank in Chicago.

“Achieving 100 per cent settlement across six apartment buildings at Darling Square, which completed towards the end of the year, demonstrates the value proposition that our precinct wide approach and high quality product offering delivers to customers,” Mr McCann said.

The Construction segment delivered a solid performance and is well placed given the strength of the development pipeline, delivery capabilities and external client relationships. New work secured of $9.9 billion[5] is diversified across multiple geographies, sectors and clients.

Group Financials

Notwithstanding a challenging year, the Group remains in a strong financial position with gearing of 9.9 per cent, which is at the bottom of the 10-20 per cent target range, and $3.9 billion of available liquidity.

Group Chief Financial Officer, Tarun Gupta said, “The Group refinanced $2.8 billion in existing and new finance facilities during the year, extending maturity to 4.8 years with no material debt maturities until FY22”.

“The Group is well positioned for the next phase of investment for growth with substantial capacity to fund the development pipeline,” Mr Gupta said.

Core business profit after tax of $804 million generated a solid return on equity of 12.8 per cent.

Development ROIC of 11.6 per cent was underpinned by strong apartment earnings across a range of urbanisation projects, the completion of the office precinct at Paya Lebar Quarter and the formation of the residential investment partnership in the US. The construction margin of 2.2 per cent[5] was generated on $9.7 billion[5] of revenue. Investments ROIC of 10.8 per cent reflected solid ownership income and strong growth in Funds Under Management and related operating income.

5 Core construction business only.

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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 201922 August 2018
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“The Group has been disciplined in its strategy to allocate more capital to international urbanisation projects. Greater returns are now being generated on this capital and we expect our international regions to deliver a larger contribution to Group earnings in future years,” said Mr Gupta.

Outlook

The cornerstone of the Group’s strategy is to create the best urban precincts in key global gateway cities. The integrated business model combined with financial strength and a strong track record of delivery is Lendlease’s point of difference.

“Our portfolio of 21[6] major urbanisation projects across 10 cities delivers on our objective of diversifying to targeted international gateway cities. These long dated projects provide strong visibility of future earnings,” Mr McCann said.

“Over the last five years the urbanisation pipeline has grown significantly from $25 billion to approximately $80 billion. In recent years, development activity has averaged $4 billion per annum. There is scope for activity to accelerate materially over the medium term given the significant growth in the pipeline and its diversity by gateway city and product type.”

Construction backlog revenue of $15.6 billion[7] is diversified by geography, client and sector. Integrated projects, especially in Europe and the Americas, are expected to account for a larger proportion of the backlog over the medium term.

“The record development book provides a substantial pipeline of institutional grade product for our capital partners and the Group’s Investments platform. Since FY14, FUM has more than doubled from $16 billion to $35 billion. The Group is well placed to double FUM again as the urbanisation pipeline is delivered,” Mr McCann said.

Further information regarding Lendlease’s results is set out in the Group’s financial results presentation for the full year ended 30 June 2019 and is available on www.lendlease.com.

ENDS

FOR FURTHER INFORMATION, PLEASE CONTACT:

Investors:

Justin McCarthy Mob: +61 422 800 321

Media: Stephen Ellaway Mob: +61 417 851 287

6 Includes project secured post balance date.

7 Core construction business only.

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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The Exchange, Darling Square, Sydney
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2019 Full Year Results 19 August 2019

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Acknowledgement of Country

As a developer, builder and manager of assets on land all over Australia, we pay our respect to the traditional owners, especially their elders past and present, and value their custodianship of these lands.

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Artist’s impression: Silvertown Quays, London
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Group Performance Steve McCann Group Chief Executive Officer and Managing Director

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Image subject to change and further design development and planning approval
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Lendlease FY19 Financial Results / 4

Value creation: non financial focus areas

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Health and Safety

Our People

Our Customers

Sustainability

Health and Safety is our number one priority. We remain committed to the health and safety of our people, our subcontractors, and all of those who interact with a Lendlease place.

Our people are the greatest contributors to our success and enable us to fulfil our vision to create the best places.

Designing and delivering innovative, customer driven solutions allows us to win the projects we want to win and ultimately deliver the best places.

We pride ourselves on reaching industry firsts – not because they’re milestones, it’s a signal we’re pushing ourselves for better outcomes for people and the planet.

Safety

Diversity and Inclusion

Customer Focus

Environment

Group Lost Time Injury Frequency Rate[1,2]

• 1.8 (1.7 in FY18)

Operations without a Critical Incident[3]

• 90% (92% in FY18)

• 26.1% of leadership positions held by women, up from 24.3% in FY18

• Focus on supporting diversity and attracting and retaining talent

• Prioritising customer • 100% of total development satisfaction measurement pipeline achieved or and advocacy targeting green certification

• More than 22,500 customers participated in • APPF Commercial 1[st] out research to measure of 874 participants in 2018 satisfaction and loyalty GRESB[4] survey

1 . Calculated on a rolling 12 month basis. 2. Calculated to provide a rate of instances per 1,000,000 hours worked. 3. A Critical Incident is an event that caused, or had the potential to cause, death or permanent disability. This is an indicator unique to Lendlease. 4. Global Real Estate Sustainability Benchmark.

Lendlease FY19 Financial Results / 5

Non core business update

Engineering and Services: FY19 outcomes

• FY19 EBITDA loss of $461m:

• Includes $500m pre tax provision from underperforming projects accounted for in HY19

• The provision primarily related to three underperforming engineering projects:

• Gateway Upgrade North: Operational since March 2019

• Kingsford Smith Drive: >85% complete – expected completion CY20

• NorthConnex M1/M2 Tunnel: >85% complete – expected completion CY20

• Engineering backlog $3.8b – two largest projects account for majority of backlog:

• Melbourne Metro Tunnel Project: <20% complete

• WestConnex 3A M4-M5 Link Tunnels: <20% complete

• Based on a review of the status of the entire Engineering portfolio, the level of provisioning is appropriate

• Services business performing strongly – backlog $1.6b and solid future pipeline opportunities

Sale process underway

• Several parties undertaking detailed due diligence

• Restructuring cost estimate of exiting the business of $450m - $550m remains appropriate:

• These costs include:

  • Implementation – technology and systems, employee and advisory costs

  • Costs or indemnities to cover concluding existing customer contracts

• Excludes proceeds to be received from sale

• $15m utilised and expensed in the second half of FY19 relating to implementation costs

Lendlease FY19 Financial Results / 6

Our approach

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Lendlease FY19 Financial Results / 7

FY19 Result

Securityholder returns[1]

• Profit after Tax of $467m, Earnings per stapled security of 82.4 cents, Return on Equity of 7.4%[2]

• Full year distributions of 42 cents per security, representing a payout ratio of 50.7% on Profit after Tax

• Core Business:

• Profit after Tax of $804m, earnings per stapled security of 141.8 cents

• Return on Equity of 12.8%[2 ] , upper end of the 10% - 14% target range

Performance highlights[1]

• Development pipeline approaching $100b including project secured post balance date:

• Secured four urbanisation projects in San Francisco, Milan, Chicago and Sydney – c.$27b

• In addition, preferred for two projects in London and Birmingham – c.$17b

• Development ROIC: 11.6%, midpoint of the 10 – 13% target range:

• Key contributions from Darling Square; Paya Lebar Quarter; Elephant Park; and US residential investment partnership

• Construction[3] EBITDA margin: 2.2%, within 2 – 3% target range

• Investments ROIC: 10.8%, top of the 8 – 11% target range:

• Growth in Funds Under Management (FUM) of 17% to $35.2b

• −Solid investment income and asset value appreciation from co-investment positions

• Underlying operating cash flow of $316m

• Strong financial position: gearing of 9.9%[4] , bottom of target range of 10 – 20%; and liquidity of $3.9b

1. Comparative period, year ended 30 June 2018. 2. Return on Equity is calculated using the Profit after Tax divided by the arithmetic average of beginning, half and year end securityholders’ equity. 3. Core business only. 4. Net debt to total tangible assets, less cash.

Lendlease FY19 Financial Results / 8

Core business strengthens with ~$100b pipeline

Executing on our strategy

• c.$27 billion[1] of urbanisation projects secured – four projects, four cities:

• −San Francisco Bay Area project: $20b[2,3]

• −Milan Innovation District: $3.6b[3]

• −Lakeshore East, Chicago: $2.1b[3]

• −Victoria Cross, Sydney: $1.1b[3 ]

• One Sydney Harbour residential Barangaroo to launch shortly

• c.$17 billion of preferred projects:

• −Thamesmead Waterfront, London: $14.5b[3]

• −Birmingham Smithfield, UK: $2.7b[3]

• Capital partnership initiatives:

• −US residential investment partnership: US$1b equity commitment

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Milan Innovation District, Milan[4]

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Lakeshore East, Chicago[4]

• −Data Centre partnership across Asia Pacific: target US$1b[5] in assets

• −Introduced additional capital partners to Barangaroo office precinct

• −Development JV completed office precinct at Paya Lebar Quarter

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Victoria Cross, Sydney[4]

1. Includes project secured post balance date. 2. Secured post balance date. 3. Estimated development end value. 4. Artist’s impression (image subject to change and further design development and planning approval). 5. Equity commitment of $500m combined with target leverage.

Lendlease FY19 Financial Results / 9

Urbanisation pipeline to drive future growth

Urbanisation pipeline ($b)

Urbanisation production rate expected to accelerate

• Production has averaged ~$4b p.a. in recent years

• Pipeline implies >20 years of supply at current production rate:

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1
81.2
−Target 1,000 – 2,000 apartment settlements: ~30 years
−Target 2 – 3 commercial building commencements: ~20 years
>3x • Significant opportunity to accelerate production activity materially
over the medium term
• Preparing for next phase of investment for growth:
25.0
−Significant investment made in delivery platform and capability
−Focus on maintaining and growing capital partner relationships
FY14 FY19
FY19 urbanisation pipeline Funds Under Management ($b)
Residential for sale c.$50b
investment Opportunity
Residential for rent grade assets 35.2 to double
Commercial anticipated to FUM again
be created from >2x as pipeline
converts
pipeline
36%
40%
1
Approx. 50 $81.2b 28,494 16.3
buildings [2] units for sale
24%
17,234 units for rent
FY14 FY19
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1. Includes project secured post balance date in San Francisco. Total development pipeline is $96.1b and includes Communities and Infrastructure. 2. Based on the average building size of all commercial buildings currently in delivery.

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Artist’s impression: Southbank, Chicago
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Financial Performance Tarun Gupta Group Chief Financial Officer

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Image subject to change and further design development and planning approval
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Lendlease FY19 Financial Results / 11

Financial performance

$m	FY18	FY19	Change
Core
Development	673	793	18%	• Strong residential for sale apartment settlements; PLQ office; US residential investment partnership
Construction	296	211	(29%)	• EBITDA margin 2.2%
Investments	669	489	(27%)	• Higher Australian investment income, strong operating earnings, lower revaluations
Operating EBITDA	1,638	1,493	(9%)
Corporate costs	(175)	(165)	6%	• Group services costs flat at $140m1
Group EBITDA	1,463	1,328	(9%)
Depreciation and amortisation	(83)	(94)	(13%)	• Investment in technology and systems and PP&E
EBIT	1,380	1,234	(11%)
Net finance costs	(73)	(125)	(71%)	• Increase primarily due to higher average net debt
PBT	1,307	1,109	(15%)
Income tax expense	(346)	(305)	12%	• Effective tax rate 27.5% Core / 24.7% Group
External non controlling interests	(1)	-	100%
PAT	960	804	(16%)
Non core
EBITDA	(218)	(461)	>(100%)	• Includes $500m pre tax provision on underperforming projects booked in first half
PAT	(167)	(337)	>(100%)
Total
PAT	793	467	(41%)
Weighted avg. securities (#m)	583	567	(3%)	• Buyback active Mar-Dec 2018
Earnings per Stapled Security (cents)	136.1	82.4	(39%)

1. Corporate costs of $165m includes Group Treasury of $25m.

Lendlease FY19 Financial Results / 12

Cash flow movements ($b)[1]

• Five year cash conversion 85%[2]

• FY19 cash conversion 36%[2,5]

Operating and Investing inflows:

• Apartment settlements $1.4b[5]

• Other urbanisation $1.2b

• Communities $0.7b

• Divestment of Barangaroo office investments $0.5b

• Residential investment partnership $0.2b

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0.3 (0.2)
0.1 (0.1)
1.3
1.2
Operating and Investing outflows:
• Urbanisation $2.3b
• Communities $0.7b
• PP&E $0.2b
• Investments $0.1b
• US telco $0.1b
FY18 closing cash Underlying operating Interest and tax paid Underlying investing Net financing and other FY19 closing cash
cash flow 3 cash flow3 adjustments4
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1. Cash flows have been included as a net position. 2. Underlying operating cash flow relative to EBITDA. 3. Refer appendix slides 12 and 13 for reconciliation to statutory operating and investing cash flows. 4. Includes the impact of foreign exchange movements on opening cash. 5. Reflects impact of PLLACes cash inflows received in prior periods.

Lendlease FY19 Financial Results / 13

Financial position

$m	FY18	FY19
Assets
Cash and cash equivalents	1,177	1,290
Inventories	5,546	5,583
Equity accounted investments	2,627	3,452
Investment properties	278	501
Other assets (including financial)	7,336	6,352
Total assets	16,964	17,178

Liabilities

Borrowings and financial arrangements	2,359	2,715
Other liabilities (including financial)	8,191	8,106
Total liabilities	10,550	10,821
Net assets	6,414	6,357
Gearing1	8.2%	9.9%

Key areas of capital employed

• Development inventories of $4.4b

• Investments of $3.7b including:

• −$1.7b co-investments

• −$1.4b Retirement Living interest

• −$0.6b other

Financial Strength

• Interest cover[2] of 8.8 times

• Gearing 9.9%, target range 10-20%

• Balanced debt maturity profile, no material concentrations:

• −No material debt maturities until FY22

• −Average cost of debt 4.0%, maturity 4.8 years

• Total liquidity of $3.9b supports anticipated increase in development and investment activity:

• −$2.8b new or extended bank facilities in FY19

• −$1.3b of cash

1. Net debt to total tangible assets, less cash. 2. FY19 EBITDA has been adjusted to exclude the $500m provision on underperforming Engineering projects.

Lendlease FY19 Financial Results / 14

Portfolio Management Framework

EBITDA mix

Invested capital

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By segment By region
18%
33%
43% 45%
$1,493m¹ $8.4b² $7.9b²
53%
57% 22%
14%
15%
Target weighting
Development Construction Investments Development Investments Australia Asia Europe Americas
(40 - 50%) (10 - 20%) (35 - 45%) (40 - 60%) (40 - 60%) (50 - 70%) (5 - 20%) (5 - 20%) (5 - 20%)
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Returns

Development – ROIC[3,4]

Investments – ROIC[3,4]

Construction – EBITDA margin[5]

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15.5%
13.4%
11.6% 3.1%
10.8%
Target 10 - 13%
Target 8 - 11% Target 2 - 3%
2.2%
FY18 FY19 FY18 FY19 FY18 FY19
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1. Core operating EBITDA. 2. Total invested capital at 30 June 2019 was $7.8b. Development and Investments totalled $8.4b, Construction and Non core ($0.5b) and Corporate ($0.1b). 3. Return on Invested Capital (ROIC) is calculated using the annualised Profit after Tax divided by the arithmetic average of beginning, half and year end invested capital. 4. Through-cycle target based on rolling three to five year timeline. 5. Core business only.

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Artist’s impression: The Exchange TRX, Kuala Lumpur
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Operational Update

Steve McCann Group Chief Executive Officer and Managing Director

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Image subject to change and further design development and planning approval
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Lendlease FY19 Financial Results / 16

Development segment

Development performance[1]

• EBITDA $793m

• ROIC 11.6%, invested capital $4.8b

• Pipeline $76.1b

• Australia:

• EBITDA driven by strong residential for sale apartments result

• Communities: subdued market conditions

• Asia:

• Strong EBITDA contribution from Paya Lebar Quarter

• Europe:

• EBITDA lower reflecting fewer completions

• Pipeline higher due to Milan Innovation District

• Americas:

• EBITDA driven by first contribution from urbanisation projects:

  • First residential for rent building completion

• Pipeline higher due to Lakeshore East

EBITDA ($m)

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FY18 FY19
793
673
551 556
121 110
79
27 37
(15)
Australia Asia Europe Americas Total
Pipeline by region ($m)
FY18 FY19
76.1
71.1
34.1
29.7 29.3 29.3
6.9 5.0 5.2 7.7
Australia Asia Europe Americas Total
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1. Comparative period, year ended 30 June 2018.

Lendlease FY19 Financial Results / 17

Development segment – Residential

Residential performance[1]

Apartments

• Significant residential for sale apartment settlements including:

• −Darling Square, Sydney 100% settled

• First ever residential for rent building completion:

• −The Cooper, Southbank, Chicago

• US residential investment partnership

• Total pipeline of approximately 31,000 units[4] across 15 cities

• Apartments for sale:

• −1,881 apartment presales in delivery

• −Potential upcoming launches: Barangaroo; The Exchange TRX

• Apartments for rent:

• −1,533 in delivery

• −Potential for >3,000 units to convert FY20 - FY24

Communities

• 2,523 lots settled, impacted by subdued market conditions:

• −Australia: 2,377 lots

• −Launch and sales at Horizon US: 146 lots

• Land lot presales of 2,276 lots, $0.6b

• Anticipate to be below target in FY20

• Pipeline of approximately 50,000 lots

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Apartment settlements [2] Apartment pipeline [4]
Target 1,000 – 2,000 units For sale secured
For rent secured
Apartments for rent
For sale in delivery3
Apartments for sale For rent in delivery3
30,728
30,500
22,273
24,865
2,075
1,314 452 5,041
1,052
1,623 3,070 1,881
1,513 1,533
FY18 FY19 FY18 FY19
Communities settlements [2] Communities pipeline
Target 3,000 – 4,000 lots
Lots presold
Lots remaining
52,333
50,038
3,912
2,523 49,102
47,762
3,231
2,276
FY18 FY19 FY18 FY19
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1. Comparative period, year ended 30 June 2018. 2. On adoption of AASB 15 from 1 July 2018, the recognition point of revenue (and associated units) on residential for sale development properties changed from practical completion to settlement in Australia, Europe and Americas. 3. Major apartment buildings in delivery. 4. Excludes post balance date project.

Lendlease FY19 Financial Results / 18

Development segment – Commercial

Commercial performance[1]

Commercial building completion profile[4]

• Major office developments completed, 164,000 sqm, c.$2.9b[2] :

• Paya Lebar Quarter, Singapore: 83,000 sqm

• 839 Collins Street, Victoria Harbour: 40,000 sqm

• One Melbourne Quarter, Melbourne: 26,000 sqm

• 25 King, Brisbane: 15,000 sqm

• Major commercial buildings in delivery c.$5.9b[2,3]

• Significant new commercial led major projects secured:

• MIND: 418,000 sqm

• Victoria Cross: 58,000 sqm

• Potential conversion FY20 – FY24[7] :

By total estimated end value ($b)

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Daramu House, Barangaroo
South, Paya Lebar Quarter (retail)
Circular Quay Tower and
and International Quarter London
The Exchange TRX (retail)
Melbourne Quarter and
Melbourne Connect 3.3
1.7
0.9
FY20 FY21 FY22
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• −10 major projects, seven gateway cities

• −18 buildings, 633,000 sqm

• −Near term opportunities:

• Melbourne Quarter

• Milano Santa Giulia

• Victoria Cross

Commercial pipeline

Buildings in delivery By $b[5,6]

By sqm ‘000

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Remaining secured
Indicative launch next 5 years 7
13 buildings In delivery 6
2,421
7 buildings 2,002
1,466
1,000
7.2
4.9
516
633
486 322
FY18 FY19 FY18 FY19
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1. Comparative period, year ended 30 June 2018. 2. Total estimated development end value. 3. Total estimated development end value is $5.9b, with $4.9b remaining. 4. Based on expected completion date of underlying buildings, subject to change in delivery program. Not indicative of cash or profit recognition. 5. Remaining estimated development end value. 6. Major commercial buildings in delivery only. 7. Subject to planning approvals and market conditions.

Lendlease FY19 Financial Results / 19

Core Construction segment

Performance[1]

EBITDA ($m)

• Global EBITDA margin 2.2%, EBITDA of $211m

• Backlog revenue of $15.6b

• Australia:

• Strong revenue growth of 8% to $4.1b

• EBITDA margin five year avg. c.4%

• New work secured $4.5b: Sydney Metro Martin Place and Victoria Cross integrated station developments, Melbourne Park Redevelopment Stage 3

• Americas:

• Revenue down 9% to $4.3b

• Weaker activity in LA and Chicago – two of five target cities

• New work secured $3.7b

• Europe:

• Stronger margin and revenue

• Benefit from high margin construction management contracts

• New work secured $1.2b

• Asia:

• Continuing focus on internal pipeline

EBITDA Margin

	Australia	Asia	Europe	Americas	Total
FY18	5.2%	2.8%	3.3%	1.4%	3.1%
FY19	3.1%	(0.2%)	4.3%	1.1%	2.2%

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FY18 FY19
296
211
195
126
63
40 46
15 23
(1)
Australia Asia Europe Americas Total
Backlog revenue ($b)
9.9 (9.7)
15.2 0.2 15.6
FY18 New work Revenue FX and FY19
secured realised Other
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1. Comparative period the full year ended 30 June 2018.

Lendlease FY19 Financial Results / 20

Investments segment

Performance[1]

Investments EBITDA by activity ($m)

Ownership earnings

FY18 FY19

• EBITDA $345m, lower revaluations compared to prior year

• $1.7b of co-investments:

• Higher income from Australian office portfolio

• −Asset value appreciation driven by solid income growth

• Capital partner acquisitions of Barangaroo office precinct

• $1.4b Retirement Living investment:

• Resales up 21% across the portfolio

• Reduced earnings based on 75% ownership compared to 100%[2] for part of prior year

Operating earnings

• Uplift in operating earnings of 8% to $144m:

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536
345
133 144
Ownership interests Operating earnings
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Funds Under Management ($b)

• −FUM of $35.2b, up 17%, including:

• Office: Paya Lebar Quarter, Singapore

• Residential for rent assets

• A number of funds currently progressing through their periodic liquidity windows

• Strong recurring asset and property management fees

• c.$80b[3] urbanisation pipeline expected to provide significant future FUM growth:

• Secured future FUM of $3.3b[4] representing 5 of 6 buildings in delivery that have been sold down

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2.0 0.3 35.2
3.7 (0.9)
30.1
FY18 Additions Divestments Revaluations FX and FY19
Other
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1. Comparative period, year ended 30 June 2018 (the prior year). 2. 100% ownership for five of the 12 months in FY18. 3. Includes project secured post balance date. 4. Secured future FUM from funds or mandates with development projects.

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Artist’s impression: Lakeshore East, Chicago
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Outlook Steve McCann Group Chief Executive Officer and Managing Director

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Image subject to change and further design development and planning approval
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Lendlease FY19 Financial Results / 22

Outlook

Strongly positioned for long term growth

• Development pipeline approaching $100b[1] :

• −Urbanisation capabilities increasingly being recognised as world leading

• −21[1] major urbanisation projects across 10 gateway cities

• −Scale platform in the US – achieved within five years of initiating strategy

• Construction backlog revenue of $15.6b:

• −Design and delivery capability for integrated model

• −External backlog diversified by client, sector and geography

• −Integrated model to provide significant backlog in future periods

• Investments segment with $3.7b of investments, $35.2b in FUM and $28.7b in AUM:

• −Funding and investment capability for integrated model

• −Strong capital partner relationships, fund and asset management platforms

• Non core business:

• Sale process underway

• Several parties are undertaking detailed due diligence

• Focus on leveraging the Group’s competitive advantage via the integrated model; urbanisation and investment platforms: −Unwavering commitment to health and safety

• −Disciplined approach to origination and managing individual project and property cycle risk

• −Diversification across segment, sector and geography provides resilience

• Strong visibility of future earnings

1. Includes project secured post balance date.

Lendlease FY19 Financial Results / 23

Earnings visibility from strong pipeline across all segments

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Development pipeline Construction backlog revenue Funds under management
$76.1b $15.6b $35.2b
Development pipeline Construction backlog revenue Funds under management
($b) ($b) ($b)
Urbanisation Communities 20 35
80
70 30
15
60 25
50
20
10
40
15
30
10
20 5
5
10
- - -
FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
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Artist’s impression: Milan Innovation District
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Questions

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Image subject to change and further design development and planning approval
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2019 Full Year Results Appendix 19 August 2019

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Artist’s Impression: Milan Innovation District
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Overview

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Image subject to change and further design development and planning approval
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Lendlease FY19 Financial Results / 3

Our business model

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Our business model is how we generate earnings The model is integrated when more than one segment is engaged on a single project

Development segment

Construction segment

Investments segment

Development of communities, inner city mixed use developments, apartments, retirement, commercial assets, and social and economic infrastructure

Project management, design and construction services, predominantly in the defence, mixed use, commercial and residential sectors

A leading wholesale investment management platform and the Group’s ownership interests in coinvestments, Retirement and US Military Housing

Core financial returns

Core financial returns

Core financial returns

• Development margin

• Development management fees

• Origination fees

• Construction margin

• Project management and construction management fees

• Fund and asset management fees

• Yield and capital growth on ownership interests

Lendlease FY19 Financial Results / 4

Globally diverse pipeline

Our globally diverse pipeline provides long term earnings visibility

$96.1b[1] $15.6b $35.2b $3.7b Development Construction Funds Under Investments Pipeline[2] backlog revenue[3] Management (FUM)

Americas

Europe

Asia

Australia

• $27.7b[1] Development pipeline[2]

• $6.2b Construction backlog

• $0.7b FUM

• $0.4b Investments

• $34.1b Development pipeline[2]

• $1.7b Construction backlog $1.5b FUM

• $0.1b Investments

• $5.0b Development pipeline[2]

• $0.8b Construction backlog

• $8.2b FUM

• $0.7b Investments

• $29.3b Development pipeline[2]

• $6.9b Construction backlog[3] $24.8b FUM $2.5b Investments

1. Includes San Francisco Bay Area project secured post balance date. 2. Remaining estimated development end value. 3. Core business only.

Lendlease FY19 Financial Results / 5

Global trends influencing our strategy

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Global infrastructure

Urbanisation

Global infrastructure spending is estimated to rise to an average of US$5.1 trillion per year between now and 2035[5]

Today, 55% of the world’s population lives in urban areas, and that’s expected to increase to 68% by 2050. The human shift from rural to urban areas, combined with the overall growth of the world’s population, could add another 2.5 billion people to urban areas by 2050[1]

Where we are today

• Secured Sydney Metro Martin Place and Victoria Cross integrated station developments

Where we are today

• Increasing our presence in telecommunications assets

• $81.2b[2] urbanisation pipeline[3]

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Funds Growth

Global assets under management are forecast to rise from US$85 trillion in 2016 to US$145 trillion by 2025[6]

Where we are today

• $35.2b of funds under management

• 13.4% annual growth in funds under management since FY15

• 21[2] major urbanisation projects[4] across 10 gateway cities

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Technology, digital and data

The exponential growth of internet use has created a new society of hyper connected citizens. Estimates predict that by 2025, on average, every connected person will have a digital data engagement over 4,800 times per day[7]

Where we are today

• Data supported technology solutions can improve and enrich the lives of customers with places that are safer, for example through the use of digital twins

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Ageing population

Internationally, the number of people aged 60+ is projected to grow three times faster than the overall population (2.4% vs 0.8% p.a.) between 2015 and 2050[8]

Where we are today

• One of Australia’s largest operators of retirement villages

• First flagship senior living project in China, Ardor Gardens, has commenced construction

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Sustainability

Climate change and society’s responses to it are now widely recognised as foundational drivers of risk and opportunity within the global economy[9]

Where we are today

• Signatory to the UN Global Compact

• Recognised by GRESB as an international leader, with the Lendlease managed Australian Prime Property Fund Commercial ranked first

1. World Urbanization Prospects: The 2018 Revision, United Nations. 2. Includes San Francisco Bay Area project secured post balance date. 3. Remaining estimated development end value. 4. Urbanisation development projects with end value >$1b. 5. McKinsey Global Institute: Bridging Infrastructure Gaps – Has the World Made Progress? October 2017. Includes some internal calculations. 6. Asset & Wealth Management Revolution: Embracing Exponential Change, PwC 2017. 7. IDC’s DataAge 2025 – The Digitization of the World. 8. World Population Prospects: The 2017 Revision, United Nations. 9. Ref: https://www.apra.gov.au/sites/default/files/climate_change_awareness_to_action_march_2019.pdf.

Lendlease FY19 Financial Results / 6

Sustainability

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The Task Force on Climate-related Financial Disclosure (TCFD) provides a voluntary framework for climate-related risk disclosures for use by companies to inform investors, lenders, insurers and interested stakeholders

Lendlease leadership

• In FY19 we progressed our disclosure under the recommendations of the TCFD

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The Reconciliation Action Plan (RAP) programme enables organisations to set goals and aspirations in support of the national reconciliation movement. An Elevate RAP, is the highest independent rating a RAP programme can receive from Reconciliation Australia

Lendlease leadership

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MSCI is an independent provider of research-driven insights and tools for institutional investors

Lendlease leadership

• Continues to achieve highest AAA ESG rating and described as an “Industry Leader” in the green building space

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The PRI is the world’s leading proponent of responsible investment working to understand the investment implications of environmental, social and governance (ESG) factors

Lendlease leadership

• Signatory since FY08

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UN Global Compact is a voluntary initiative based on CEO commitments to implement universal sustainability principles and to take steps to support UN goals

Lendlease leadership

• Signatory and active participant since April 2014

~~®~~

GRESB is an investor driven organisation assessing the sustainability performance of real asset sector portfolios and assets

Lendlease leadership

• Australia Prime Property Fund Commercial rated worlds best by GRESB in 2018[1] . Rated the number one fund four out of the last five years

• Lendlease’s 2[nd] RAP achieved ‘Elevate’ status from Reconciliation Australia

• Lendlease is currently preparing our next RAP and targeting ‘Elevate’ status again

1. Lendlease managed Australian Prime Property Fund Commercial ranked first out of 874 respondents in the 2018 Global Real Estate Sustainability Benchmark.

Lendlease FY19 Financial Results / 7

Portfolio Management Framework[1]

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Business model
• Integrated model synergies
• Target EBITDA mix:
o Development 40 - 50%
o Construction 10 - 20%
o Investments 35 - 45%
2
Capital allocation Target returns
• Focused on gateway cities • Group ROE 10 - 14%
• 50 - 70% capital in Australia 1 3 • Development ROIC 10 - 13% [2]
• 20% capital max per international region • Construction EBITDA margin 2 - 3%
• Investments ROIC 8 - 11% [2]
5 4
Distribution policy Capital structure
• Payout 40 - 60% of earnings • Investment grade credit rating
• Capital management discipline • Optimised WACC
• Target gearing [3 ] 10 - 20%
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1. Targets for EBITDA mix, Development ROIC and Construction EBITDA margin were revised at HY19 following the decision that the Engineering and Services business is no longer a required part of the Group’s strategy and following reclassification of internal construction margin to the Development segment. 2. Through-cycle target based on rolling three to five year timeline. 3. Net debt to total tangible assets, less cash. Review of capital structure underway to reflect change in business mix.

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Artist’s Impression: Southbank, Chicago
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Group

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Image subject to change and further design development and planning approval
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Lendlease FY19 Financial Results / 9

Income Statement

Income Statement
$m FY18	FY19
Revenue from contracts with customers1 16,422 Other revenue1 134 Cost of sales (15,038)	16,386
	152
	(15,438)
Gross profit 1,518	1,100
Share of profit of equity accounted investments 131 Other income 496 Other expenses (1,007)	338
	295
	(988)
Results from operating activities 1,138	745
Finance revenue 16 Finance costs (88)	17
	(142)
Net finance costs (72)	(125)
Profit before tax 1,066	620
Income tax expense (272)	(153)
Profit after tax 794	467
Profit after tax attributable to: Members of Lendlease Corporation Limited 580 Unitholders of Lendlease Trust 213
	313
	154
Profit after tax attributable to securityholders 793	467
External non controlling interests 1	-
Profit after tax 794	467
Earnings per Stapled Security cents 136.1	82.4

1. FY18 balances have been reclassified to align the presentation of comparative information to disclosures required under AASB 15 Revenue from Contracts with Customers which has been adopted from 1 July 2018. $134m has been reclassified from Revenue from contracts with customers to Other revenue.

Lendlease FY19 Financial Results / 10

Statement of Financial Position

$m FY18	FY19 1,290 2,050 2,238 97 11 70 5,756 688 3,345 3,452 501 1,103 101 548 1,457 140 87 11,422 17,178	$m FY18	FY19
Current Assets Cash and cash equivalents 1,177 Loans and receivables 2,670 Inventories 2,369 Other financial assets 7 Current tax assets - Other assets 91		Current Liabilities Trade and other payables 5,770 Provisions 330 Borrowings and financing arrangements 475 Current tax liabilities 10 Other financial liabilities 3
			5,724
			332
			225
			-
			6
		Total current liabilities 6,588	6,287
		Non Current Liabilities Trade and other payables 1,531 Provisions 67 Borrowings and financing arrangements 1,884 Other financial liabilities 1 Deferred tax liabilities 479
Total current assets 6,314
Non Current Assets Loans and receivables 788 Inventories 3,177 Equity accounted investments 2,627 Investment properties 278 Other financial assets 1,548 Deferred tax assets 120 Property, plant and equipment 465 Intangible assets 1,421 Defined benefit plan asset 155 Other assets 71			1,401
			45
			2,490
			1
			597
		Total non current liabilities 3,962	4,534
		Total liabilities 10,550	10,821
		Net assets 6,414	6,357
		Equity Issued capital 1,297 Treasury securities (44) Reserves 61 Retained earnings 3,855
			1,300
			(68)
			105
Total non current assets 10,650			3,815
Total assets 16,964		Total equity attributable to members of Lendlease Corporation Limited 5,169 Total equity attributable to unitholders of Lendlease Trust 1,244	5,152
			1,182
		Total equity attributable to securityholders 6,413 External non controllinginterests 1	6,334
			23
		Total equity 6,414	6,357

Lendlease FY19 Financial Results / 11

Statement of Cash Flows

$m FY18	FY19
Cash Flows from Operating Activities Cash receipts in the course of operations 16,354 Cash payments in the course of operations (16,216) Interest received 13 Interest paid (122) Dividends/distributions received 77 Income taxpaidin respect ofoperations (33)
	17,026
	(16,902)
	13
	(152)
	105
	(30)
Net cash provided by operating activities 73	60
Cash Flows from Investing Activities Sale/redemption of investments 74 Acquisition of investments (449) Acquisition of/capital expenditure on investment properties (112) Net loan (drawdowns)/repayments from associates and joint ventures 410 Disposal of consolidated entities (net of cash disposed and transaction costs) 434 Disposal of property, plant and equipment 7 Acquisition of property, plant and equipment (110) Acquisitionof intangible assets (32)
	571
	(378)
	(53)
	(22)
	266
	14
	(165)
	(66)
Net cash provided by investing activities 222	167
Cash Flows from Financing Activities Proceeds from borrowings 2,021 Repayment of borrowings (1,871) Dividends/distributions paid (372) Payments for on market buyback of stapled securities (178) Payments for on market buyback of stapled securities - Dividend Reinvestment Plan (10) Increase in capital of non controlling interest 22 Other financing activities (10)
	4,640
	(4,347)
	(258)
	(174)
	(11)
	22
	-
Net cash used in financing activities (398)	(128)
Other Cash Flow Items Effect of foreign exchange rate movements on cash and cash equivalents 31
	14
Net (decrease)/increase in cash and cash equivalents (72)	113
Cash and cash equivalents at beginning of financial year 1,249	1,177
Cash and cash equivalents at end of financial year 1,177	1,290

Lendlease FY19 Financial Results / 12

Underlying operating cash flow

Cash conversion (FY15 – FY19) ($m)

• Underlying operating cash flow has been included to provide a more accurate cash comparator against Group EBITDA

• This represents 85% of Group EBITDA over the period. Balance relates to a combination of factors including:

• Investment revaluations

• Retirement DMF accruals

• Construction working capital movements

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Total conversion against EBITDA of 85%
Cash
39% 157% 104% 73% 36%
conversion
Group 1,202 1,245
EBITDA 967 1,055
867
1,659
Underlying 1,254
operating 913
cash flow
377 316
FY15 FY16 FY17 FY18 FY19
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Reconciliation[1] (FY15 – FY19) ($m)

• Lendlease has delivered underlying operating cash flow of $4.5b from FY15 to FY19

• $0.9b has been paid in interest and tax

• Since FY15, $1.6b (35%) of the Group’s underlying operating cash flow has been reinvested into development inventories[2]

• $1b has been generated from the sell down of deconsolidated development entities and realised net gain on sales of assets (classified as statutory investing cash flow)[3]

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85% conversion
against EBITDA
5,336
1,016 4,519
1,604
934
965
Operating Interest and Net Adjustment Underlying EBITDA
cash flow tax paid investment from investing operating
into cash flow cash flow
development
inventory
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1. Refer to Financial and Operational Metrics data file for full reconciliation. 2. Movement in development properties inventory, less movement in deferred land payments. 3. Reallocation reflects cash proceeds from sell down of development entities and realised gains on sale of assets not reflected in operating cash flow.

Lendlease FY19 Financial Results / 13

FY19 underlying operating cash flow

In FY19 Lendlease delivered underlying operating cash flow of $0.3b

Overview

$m

Statutory Adjustments Underlying

• Underlying operating cash flow is derived by adjusting statutory cash flows to better reflect operating cash generated by the Group from its operating model prior to:

Cash Flows from Operating Activities Cash receipts in the course of operations 17,026 - 17,026 Cash payments in the course of operations (16,902) (376)1 (17,278) Dividends/distributions received 105 - 105 Deconsolidation of development entities - 2662 266 Realised gains on sale of assets - 1973 197 Interest received 13 (13) - Interest paid (152) 152 - Income tax paid in respect of operations (30) 30 - Net cash provided by operating activities 60 256 316 Cash Flows from Investing Activities Sale/redemption of investments 571 (197)3 374 Acquisition of investments (378) - (378) Acquisition of/capital expenditure on investment properties (53) - (53) Net loan (drawdowns)/repayments from associates and joint ventures (22) - (22) Disposal of consolidated entities (net of cash disposed and transaction costs) 266 (266)2 - Disposal of property, plant and equipment 14 - 14 Acquisition of property, plant and equipment (165) - (165) Acquisition of intangible assets (66) - (66) Net reduction in development inventory - 3761 376 Net cash provided by investing activities 167 (87) 80

1. Net reduction in development inventory During the period there was a reduction in development inventories (net of deferred land payments) which has been reclassified as an investing activity 2. Cash proceeds from sell down of development entities The proceeds on sale of deconsolidated development entities is reclassified as an operating activity, to align with the treatment of cash flows prior to deconsolidation 3. Realised gains on sale of assets Lendlease is an active investment manager, with revaluations included in EBITDA. Accordingly, gains on disposal (including crystallised revaluations) are reclassified as an operating activity Summary of adjustments derived by adjusting statutory cash flows to better reflect operating cash generated by the Group from its operating model prior to: – Payment of interest and tax – Reinvestment in the Group’s pipeline

Lendlease FY19 Financial Results / 14

Core segment financial metrics

Operating Profit after Tax ($m)

Operating EBITDA ($m)

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FY18 FY19 FY18 FY19
793
673 669
554
492 494 489
368
296
211
189
141
Development Investments Construction Development Investments Construction
ROIC [1] (Development and Investments), Invested capital
EBITDA margin (Construction) (Development and Investments) ($b)
FY18 FY19 FY18 FY19
ROIC EBITDA margin
4.8
4.3
15.5%
3.6
13.4% 3.3
11.6%
10.8%
3.1%
2.2%
Development Investments Construction Development Investments
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1. Return on Invested Capital (ROIC) is calculated using the annual Profit after Tax divided by the arithmetic average of beginning, half and year end invested capital.

Lendlease FY19 Financial Results / 15

Segment and regional financial metrics

By segment

Revenue ($m) EBITDA ($m) Profit after Tax ($m) FY18 FY19 FY18 FY19 FY18 FY19	Invested capital ($b) FY18 FY19	Invested capital ($b) FY18 FY19
Development 3,204 3,355 673 793 492 554 Investments 394 348 669 489 494 368 Construction 9,656 9,680 296 211 189 141 Corporate1 34 31 (175) (165) (215) (259)	4.3 4.8 3.3 3.6
Total Core Segments 13,288 13,414 1,463 1,328 960 804
Non Core 3,284 3,141 (218) (461) (167) (337)
Total Group 16,572 16,555 1,245 867 793 467

By region

By region	By region
Revenue ($m) EBITDA ($m) Profit after Tax ($m) Invested capital ($b) FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19
Australia2 6,872 6,974 1,229 1,012 865 744 4.4 3.6 Asia 652 482 97 170 62 102 0.9 1.2 Europe 900 1,498 140 86 133 68 1.2 1.7 Americas 4,830 4,429 172 225 115 149 1.0 1.4 Corporate1 34 31 (175) (165) (215) (259)
Total Core Segments 13,288 13,414 1,463 1,328 960 804
Non Core 3,284 3,141 (218) (461) (167) (337)
Total Group 16,572 16,555 1,245 867 793 467

1. Comprises Group Services and Group Treasury costs. FY19 EBITDA: Group Services ($140m) and Group Treasury ($25m). FY18 EBITDA: Group Services ($140m) and Group Treasury ($35m). 2. Invested capital is inclusive of Non Core.

Lendlease FY19 Financial Results / 16

Revenue and EBITDA by segment and region

$m Revenue EBITDA FY18 FY19 FY18 FY19 Development Australia 2,856 2,712 551 556 Asia 67 18 27 121 Europe 198 544 110 37 Americas 83 81 (15) 79 Total Development 3,204 3,355 673 793 Construction Australia 3,742 4,052 195 126 Asia 536 401 15 (1) Europe 680 941 23 40 Americas 4,698 4,286 63 46 Core Construction 9,656 9,680 296 211 Non Core 3,284 3,141 (218) (461) Total Construction 12,940 12,821 78 (250)	Operating EBITDA by segment ($m)
	673 296 669 (218) 793 211 489 (461) FY18 FY19
	Operating EBITDA by region ($m) Development Construction Investments Non Core

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FY18 FY19
793
673 669
489
296
211
(218) (461)
Development Construction Investments Non Core
Operating EBITDA by region ($m)
FY18 FY19
1,229
1,012
225
170 140 172
97 86
(218) (461)
Australia Asia Europe Americas Non Core
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Investments

Investments
Australia	274	210	483	330
Asia	49	63	55	50
Europe	22	13	7	9
Americas	49	62	124	100
Total Investments	394	348	669	489
Total Operating Australia	6,872	6,974	1,229	1,012
Asia	652	482	97	170
Europe	900	1,498	140	86
Americas	4,830	4,429	172	225
Core Operating	13,254	13,383	1,638	1,493
Non Core	3,284	3,141	(218)	(461)
Total Operating	16,538	16,524	1,420	1,032

Lendlease FY19 Financial Results / 17

Revenue/EBITDA by segment and region, local currency

Asia

Asia
SGDm¹	Revenue		EBITDA
	FY18	FY19	FY18	FY19
Development Construction	70 557	17 390	28 16	117 (1)
Investments Total Operating	51 678	61 468	57 101	49 165

Europe

Europe
£m1	Revenue		EBITDA
	FY18	FY19	FY18	FY19
Development	114	299	63	20
Construction	387	518	13	22
Investments Total Operating	12 513	7 824	4 80	5 47

Americas
US$m	Revenue		EBITDA
	FY18	FY19	FY18	FY19
Development	64	58	(12)	56
Construction Investments	3,617 38	3,043 44	49 95	33 71
Total Operating	3,719	3,145	132	160

Operating EBITDA, local currency (m)

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FY18 FY19
165
117
101
57 49
28
16
(1)
Development Construction Investments Total Operating
FY18 FY19
80
63
47
20 22
13
4 5
Development Construction Investments Total Operating
FY18 FY19
160
132
95
71
56 49
33
(12)
Development Construction Investments Total Operating
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1. Major currency in region.

Lendlease FY19 Financial Results / 18

Exchange rates

Income Statement

Statement of Financial Position

Income Statement	Statement of Financial Position
Local Foreign FY181 FY192 AUD USD 0.77 0.71 AUD GBP 0.57 0.55 AUD SGD 1.04 0.97	Local Foreign FY183 FY194
	AUD USD 0.74 0.70
	AUD GBP 0.56 0.55
	AUD SGD 1.01 0.95

FX sensitivity

		USD	GBP	SGD
FY19 Income statement
+10% average FX rate (strengthening AUD)		0.78	0.61	1.07
Change as % of Group PAT	%	(2.57%)	(1.07%)	(1.28%)
-10% average FX rate (weakening AUD)		0.64	0.50	0.87
Change as % of Group PAT	%	3.00%	0.64%	1.71%

FY19 Statement of Financial Position

+10% spot FX rate (strengthening AUD)		0.77	0.61	1.05
Change as % of Group Net Assets	%	(1.31%)	(1.35%)	(0.72%)
-10% spot FX rate (weakening AUD)		0.63	0.50	0.86
Change as % of Group Net Assets	%	1.62%	1.35%	0.80%

1. Average foreign exchange rate for the full year 2018. 2. Average foreign exchange rate for the full year 2019. 3. Spot foreign exchange rate at 30 June 2018. 4. Spot foreign exchange rate at 30 June 2019.

Lendlease FY19 Financial Results / 19

FY19 regional EBITDA to PAT reconciliation

FY19 regional	EBITDA to PAT reconciliation
$m	EBITDA Net interest D&A1 PBT Tax	PAT
Australia Development Construction Investments	556 2 (6) 552 (157) 126 - (5) 121 (37) 330 - (5) 325 (60)
		395
		84
		265
Total Australia	1,012 2 (16) 998 (254)	744
Asia Development Construction Investments	121 - - 121 (42) (1) - (1) (2) - 50 - - 50 (25)
		79
		(2)
		25
Total Asia	170 - (1) 169 (67)	102
Europe Development Construction Investments	37 4 (2) 39 (12) 40 (1) (2) 37 (6) 9 - (1) 8 2
		27
		31
		10
Total Europe	86 3 (5) 84 (16)	68
Americas Development Construction Investments	79 - (4) 75 (22) 46 - (4) 42 (14) 100 - (1) 99 (31)
		53
		28
		68
Total Americas	225 - (9) 216 (67)	149
Corporate Group Services GroupTreasury	(140) - (63) (203) 58 (25) (130) - (155) 41
		(145)
		(114)
Total Corporate	(165) (130) (63) (358) 99	(259)
Total Core Business	1,328 (125) (94) 1,109 (305)	804
Non Core	(461) - (28) (489) 152	(337)
Total Group	867 (125) (122) 620 (153)	467

1. Depreciation and amortisation.

Lendlease FY19 Financial Results / 20

Debt metrics

Debt metrics
		FY18	FY19
Net debt	$m	1,182	1,425
Borrowings to total equity plus borrowings	%	26.9	29.9
Net debt to total tangible assets, less cash	%	8.2	9.9
Interest cover1	times	10.7	8.8
Average cost of debt	%	4.8	4.0
Average debt maturity	years	4.6	4.8
Average debt mix fixed: floating	ratio	86:14	52:48
Undrawn facilities	$m	1,827	2,631

1. EBITDA plus interest income, divided by interest finance costs, including capitalised finance costs. FY19 EBITDA has been adjusted to exclude the $500m provision on underperforming Engineering projects.

Lendlease FY19 Financial Results / 21

Debt facilities and maturity profile

Debt facilities[1] ($m)

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Drawn Facility
1,800
960
727 725
543 543 567 567
303 303 314 314
110 145
Australian medium Syndicated Cash UK Bond Issue Club Revolving Asia Loan US $ Reg. S notes Singapore Bond
term notes Advance Facility Credit Facility Facility S$300m
Debt maturity profile [2] ($m)
Australian medium term notes Syndicated Cash Advance Facility UK Bond Issue Club Revolving Credit Facility
Asia Loan Facility US $ Reg. S notes Singapore Bond S$300m Undrawn
727
545
900 900 960
571
80
316
225
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
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1. Values are shown at amortised cost. 2. Values are shown at gross facility value.

Lendlease FY19 Financial Results / 22

Key dates for investors

Key dates for investors
	Date
FY19 results released to market / final distribution declared	19 August 2019
Securities quoted ex distribution on the Australian Securities Exchange	23 August 2019
Final distribution record date	26 August 2019
Final distribution payable	16 September 2019
Annual General Meetings	20 November 2019

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Artist's Impression: Victoria Cross, Sydney
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Development Segment

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Image subject to change and further design development and planning approval
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Lendlease FY19 Financial Results / 24

Earnings drivers - Development

ROIC target 10-13%[1] ; Invested capital $4.8b; Pipeline[2,3] $76.1b

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Urbanisation Communities Telco Infrastructure Military
Infrastructure Development Housing
20 [3] major projects in 16 communities
10 gateway cities projects across
Australia
Australian US Military
US Telco
Apartments Commercial Communities Infrastructure Housing
Towers
Development Portfolio
Target Target Target
1,000 - 2,000 2 - 3 buildings 3,000 - 4,000 Development Development
Origination fees
settlements commenced settlements margin fees
per annum per annum per annum
Additional scope
218 tower on existing
30,728 units 2,421,000 sqm 50,038 lots Periodic bids for
pipeline on projects and
$32.6b $28.6b $14.7b PPP projects
balance sheet periodic bids for
major projects
Business
Returns
and Metrics
2,3
Pipeline
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1. Target was revised at HY19 following reclassification of internal construction margin to the Development segment. Through-cycle target based on rolling three to five year timeline. 2. Remaining estimated development end value. 3. Excludes San Francisco Bay Area project secured post balance date.

Lendlease FY19 Financial Results / 25

Development FY19

Overview

• Involved in the development of communities, inner city mixed use developments, apartments, retirement, commercial assets, and social and economic infrastructure

• Financial returns are generated via development margin, development management fees and origination fees

	Performance		FY18	FY19
	Core business EBITDA mix	%	41	53
	ROIC	%	13.4	11.6
	Invested capital	$b	4.3	4.8

Drivers[1]

Outlook

• Apartments for sale settlements[2] : 1,623 units, up 24% Darling Square, Victoria Harbour, Elephant Park

• Apartments for rent completions: 452 units

• Cooper at Southbank, Chicago

• Communities settlements: 2,523 lots, down 36%

• 2,377 lots Australia, 146 lots Americas

• Profit contribution from Paya Lebar Quarter: c.$130m Office precinct 83,000 sqm

• Revenue from residential apartments recognised on percent complete basis

• US residential investment partnership: $73m profit on disposal

• 736 units – Cooper at Southbank, Chicago and Clippership Wharf Buildings 1 and 2, Boston

• Australia commercial profit:

• Barangaroo South retail

• Brisbane Showgrounds, 25 King[3]

• US telecommunication towers – 87 completions

• Three new major urbanisation projects secured in FY19 Victoria Cross, Sydney: $1.1b[4] Lakeshore East, Chicago: $2.1b[4] Milan Innovation District: $3.6b[4]

• San Francisco Bay Area project secured post balance date: $20b

• Preferred bidder on two additional major urbanisation projects:

• Birmingham Smithfield: $2.7b

• Thamesmead Waterfront: $14.5b

• $96.1b[6] development pipeline[5]

• 17 major apartment buildings in delivery across six gateway cities

• 1,881 units presold in delivery: $1.7b

• 1,533 units for rent in delivery: $1.5b[4]

• 2,276 communities lots presold: $0.6b

322,000 sqm of commercial space in delivery across seven major buildings: $4.9b[5]

• Remaining secured pipeline[5] not yet in delivery

• c.42,000[6] apartment units: c.$49b[6]

• o c.2,100,000[6] sqm of commercial space: c.$24b[6]

1. Comparative year the year ended 30 June 2018. 2. 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. 3. Forward sold in FY17, profit on completion. 4. Total estimated development end value. 5. Remaining estimated development end value. 6. Includes San Francisco Bay Area project secured post balance date.

Lendlease FY19 Financial Results / 26

Development earnings / pipeline

EBITDA by region ($m)

Pipeline[1] by region ($b)

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FY18 FY19 FY18 FY19
793
76.1
673 71.1
551 556
34.1
29.7 29.3 29.3
121 110
27 37 79 6.9 5.0 5.2 7.7
(15)
Australia Asia Europe Americas Total Australia Asia Europe Americas Total
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FY19 urbanisation pipeline[1] by region

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Pipeline [1] ($b)
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Australia Asia Europe Americas
12%
25%
$61.2b
8%
55%
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Urbanisation Communities²
76.1³
71.1³
14.7
15.1
48.8 49.3
44.9
11.5 14.7
12.1
61.2
55.9
32.8 37.3 34.6
FY15 FY16 FY17 FY18 FY19
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1. Remaining estimated development end value. Excludes San Francisco Bay Area project secured post balance date. 2. FY18 and FY19 exclude Australian Retirement pipeline which is now included in the Investments segment following the Retirement Living transaction. 3. FY18 and FY19 include $0.1b and $0.2b of Infrastructure pipeline respectively.

Lendlease FY19 Financial Results / 27

Residential development

Communities settlements[1]

FY19 Apartment settlements[1]

Communities settlements1	FY19 Apartment settlements1
FY18 FY19 Lots $m Lots $m QLD 1,433 303 530 117 NSW 964 348 449 109 VIC 1,285 297 1,216 301 SA 113 16 98 15 WA 117 27 84 19 Total Australia 3,912 991 2,377 561 Total Americas - - 146 5 Total 3,912 991 2,523 566 Communities sales FY18 FY19 Lots $m Lots $m QLD 996 213 574 125 NSW 412 167 161 82 VIC 1,573 422 528 139 SA 105 17 114 18 WA 161 38 45 9 Total Australia 3,247 857 1,422 373 Total Americas - - 146 5 Total 3,247 857 1,568 378	Units $m
	Apartments for sale Australia Darling Square - Darling North, Harbour Place and Trinity House 577 808 Darling Square - Darling Rise, Barker House and Arena 390 493 Victoria Harbour - Collins Wharf 1 257 224 Other 57 49
	Total Australia 1,281 1,574
	Europe Elephant Park - West Grove (Buildings 1 and 2) 278 254 Wandsworth - Victoria Drive 17 27 Other 1 1
	Total Europe 296 282
	Total Americas 46 209
	Total apartment for sale settlements 1,623 2,065
	Apartments for rent2 Americas Southbank - Cooper at Southbank 452 286
	Total apartment for rent completions 452 286
	Total apartment settlements/completions 2,075 2,351

1. 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. 2. Completions on residential for rent apartments are aligned with practical completion and are not necessarily indicative of profit recognition.

Lendlease FY19 Financial Results / 28

Non residential development commencements and completions

City	Project	Building	Sector	Capital model	**End value1 ($b) **	sqm ‘000
Commercial	completions
Melbourne	Victoria Harbour	839 Collins Street	Office	Fund through	0.4	40
Melbourne	Melbourne Quarter	One Melbourne Quarter	Office	Fund through	0.3	26
Brisbane	Brisbane Showgrounds	25 King	Office	Fund through	0.1	15
Singapore	Paya Lebar Quarter	Commercial (3 buildings)	Office	Joint venture	2.1	83

Location Telecommunications completions Americas

Completed (no.)	**End value1 **	($m)
87	67.3

1. Total estimated development end value.

Lendlease FY19 Financial Results / 29

Residential apartments[1]

Movement in presales – Apartments for sale

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By units Australia Asia Europe Americas By value ($m) Australia Asia Europe Americas
425 (1,623) 482 (2,065)
3,530 3,436
100
169
1,243 (109) 2,223 885
112 464 58 1,911
386
150
1,013
732
1,801 423 1,918 571
675 458
FY18 Sales Settlements² Other³ FY19 FY18 Sales Settlements² FX and FY19
Other³
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Apartments for rent in delivery

By units

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Europe Americas
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By value[5] ($b)

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Europe Americas
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586 (452) 0.5 (0.3)
- 1.5
(114)
1,513 1,533 1.3
0.7
0.5
850 870
0.8 0.8
663 663
FY18 Commence- Completions Other⁴ FY19 FY18 Commence- Completions FX and FY19
ments ments Other
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1. Includes 100% of revenue from joint venture projects. 2. 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. 3. Units at Elephant Park have been repurposed. 4. Clippership Wharf - Building 4 has been repurposed as an apartment for sale product. 5. Total estimated development end value.

Lendlease FY19 Financial Results / 30

Residential communities

Movement in presales[1]

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By lots By value ($m)
Australia Americas Australia Americas
378 (566)
1,568 (2,523)
813
3,231
625
2,276
FY18 Sales Settlements² FY19 FY18 Sales Settlements² FY19
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1. Includes 100% of revenue from joint venture projects. 2. 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 and Americas.

Lendlease FY19 Financial Results / 31

Pipeline provides long term earnings visibility

Record secured pipeline[1] of $76.1b controlled by invested capital of $4.8b

Apartments

Target annual turnover[2]

• 1,881 presold units and 1,533 units for rent across 17 major apartment buildings[3] in delivery, expected delivery FY20 to FY22

1,881 units 1,533 units 27,314 units remaining 30,728 units presold⁴ for rent 1,000 - 2,000 settlements $1.7b $1.1b⁵ presold⁴ for rent $29.8b remaining $32.6b Commercial 7 major buildings[[6]] in delivery, with expected completion FY20 to FY22 322,000 sqm in delivery 2,099,000 sqm remaining 2,421,000 sqm 2 - 3 buildings commenced $4.9b⁷ in delivery $23.7b remaining $28.6b Communities[[8]] 2,276 lots 878 retirement 46,884 lots remaining 50,038 lots presold units 3,000 - 4,000 settlements $0.6b $0.4b presold retirement $13.7b remaining $14.7b $76.1 billion Total pipeline[1]

Commercial

• 7 major buildings[[6]] in delivery, with expected completion FY20 to FY22

Communities[[8]]

1. Remaining estimated development end value. Includes Infrastructure of $0.2b. Excludes San Francisco Bay Area project secured post balance date. 2. Subject to market conditions. 3. Refer to the Apartments Settlement Profile on page 33 for a breakdown of the major buildings. 4. Presales balance on major buildings in delivery only. 5. Total estimated development end value of c.$1.5b, with c.$0.4b realised to date. 6. Refer to the Commercial Buildings Completion Profile on page 34 for a breakdown of the major buildings. 7. Total estimated development end value of c.$5.9b, with c.$1.0b realised to date. 8. Includes Asian retirement development units.

Lendlease FY19 Financial Results / 32

Major urbanisation project summary

Region	Project Project secured Delivery commenced1 Completion date2 Residential backlog units Commercial backlog sqm ‘0003 Remaining end value ($b)4 Land payment model
Australia	Barangaroo South, Sydney FY09 FY12 FY24 808 12 3.6 Stagedpayment
	Melbourne Quarter FY13 FY16 FY25 1,488 121 2.3 Land management
	Victoria Harbour, Melbourne FY01 FY04 FY27 2,103 3 2.2 Land management
	Brisbane Showgrounds FY09 FY11 FY33 2,278 67 2.2 Land management
	Circular QuayTower, Sydney FY12 FY17 FY22 - 57 1.9 Upfrontpayment
	Waterbank, Perth FY13 FY20 FY29 1,308 12 1.4 Land management
	Victoria Cross, Sydney FY19 FY22 FY25 - 58 1.1 Stagedpayment
Asia	The Exchange TRX5, Kuala Lumpur FY14 FY17 FY26 2,326 122 3.2 Stagedpayment
	Paya Lebar Quarter, Singapore FY15 FY16 FY20 429 29 1.3 Upfrontpayment
Europe	Euston Station, London FY18 FY26 FY40+ 2,000 400 10.5 Land management
	Silvertown Quays, London FY18 FY21 FY32 3,000 440 6.4 Land management
	Milano Santa Giulia, Milan FY18 FY20 FY35 2,558 266 3.9 Land management
	Milan Innovation District FY19 FY21 FY31 946 418 3.6 Stagedpayment
	Elephant Park, London FY10 FY12 FY25 1,985 51 2.9 Stagedpayment
	International Quarter London FY10 FY14 FY30 - 199 2.6 Land management
	High Road West, London FY18 FY21 FY29 2,501 14 2.0 Land management
	The Timberyard, Deptford, London FY14 FY16 FY25 1,453 10 1.5 Upfrontpayment
Americas	Lakeshore East, Chicago FY19 FY20 FY26 1,208 2 2.1 Stagedpayment
	Southbank, Chicago FY15 FY16 FY27 1,553 26 2.1 Upfrontpayment
	30 Van Ness, San Francisco FY17 FY21 FY25 360 23 1.4 Upfrontpayment
Other urbanisationprojects 2,424 91 3.0
Total urbanisation 30,728 2,421 61.2
Americas San Francisco Bay Area project FY20 15,000 n/a6 20.0 Land management
Total urbanisation including securedpost balance date 45,728 2,421 81.2

1. Includes forecast commencement dates, subject to change in delivery program. 2. Based on expected completion date of underlying buildings, subject to change in delivery program. 3. Floor space measured as Net Lettable Area. 4. Remaining estimated development end value. 5. Formerly The Lifestyle Quarter. 6. Commercial in confidence.

Lendlease FY19 Financial Results / 33

Apartments settlement profile

			Total			Units	Presales2	Delivery
City	Project	Building	units	**Ownership **	Presold	presold2	($b)	date3
Residential for sale apartments
Melbourne	Victoria Harbour	Collins Wharf 1	321	100%	95%1	47	0.1	FY19 / FY20
Singapore	Paya Lebar Quarter	Residential (3 Buildings)	429	30%	99%	423	0.6	FY20
London	Elephant Park	West Grove (Building 2)	367	100%	87%1	190	0.2	FY19 / FY20
London	Deptford	Cedarwood Square	203	100%	85%	173	0.1	FY20
Boston	Clippership Wharf	Building 3	80	100%	100%	80	0.1	FY20
New York	Fifth Avenue	277 Fifth Avenue	130	40%	-4	-4	-4	FY19 / FY20
Melbourne	Melbourne Quarter	East Tower	719	50%	87%	627	0.4	FY20 / FY21
London	Elephant Park	East Grove and Park Central North5	166	100%	100%	166	0.1	FY21
Boston	Clippership Wharf	Building 4	114	100%	22%	25	-	FY21
Manchester	Potato Wharf	Potato Wharf Block 3 & 4	191	100%	77%	147	0.1	FY22

			Total		Delivery
City	Project	Building	units	Ownership	date6
Residential for rent apartments
Boston	ClippershipWharf	Buildings 1 and 2	284	50%7	FY20
London	Elephant Park	East Grove and Park Central North	663	20%	FY21
Chicago	845 West Madison	845 West Madison	586	37.5%	FY21

1. Includes units settled prior to the 30 June 2019. 2. Closing presales balance as at 30 June 2019, excludes units settled prior to this date. 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. Delivery date is subject to change in delivery program. 4. Project information subject to joint venture confidentiality. 5. Affordable housing units presold within apartment for rent buildings. 6. Based on expected completion date of underlying buildings, subject to change in delivery program. Not indicative of cash or profit recognition. 7. Following the sell down to First State Super, ownership has decreased to 50.0% for Clippership Wharf Buildings 1 and 2.

Lendlease FY19 Financial Results / 34

Commercial buildings completion profile

City	Project	Capital model	sqm '0001	Building	Completion date2
Sydney	Barangaroo South	Fund through3	11	Daramu House	FY20
Singapore	Paya Lebar Quarter	Joint venture	29	Retail	FY20
London	International Quarter London	Fund through3	26	Commercial building	FY20
Melbourne	Melbourne Quarter	Fund through3	50	Two Melbourne Quarter	FY21
Melbourne	Melbourne Connect	BOOT4	27	Melbourne Connect	FY21
Sydney	Circular Quay Tower	Joint venture	57	Circular Quay Tower	FY22
Kuala Lumpur	The Exchange TRX5	Joint venture	122	Retail	FY22
Total			322

1. Floor space measured as Net Lettable Area. 2. Based on expected completion date of underlying buildings, subject to change in delivery program. Not indicative of cash or profit recognition. 3. A funding model structured through a forward sale to a capital partner resulting in staged payments prior to building completion. 4. Build, Own, Operate, Transfer. 5. Formerly The Lifestyle Quarter.

Lendlease FY19 Financial Results / 35

Conversion of secured pipeline

Indicative conversion timing of secured commercial pipeline to FY24

City	Project	# Buildings	Sector	sqm ‘0001	FY20	FY21	FY22	FY23	FY24
Melbourne	Melbourne Quarter	2	Office/Retail	71
Sydney	Victoria Cross	1	Office	58
Brisbane	Brisbane Showgrounds	1	Office	31
Milan	Milano Santa Giulia	5	Office/Retail	140
London	International Quarter London	2	Office	110
Milan	Milan Innovation District	3	Office/Retail	72
London	Silvertown Quays	1	Office	61
London	Elephant Park	1	Office	44
San Francisco	30 Van Ness	1	Office	23
Chicago	Southbank	1	Office	23
Total		18		633

Indicative conversion timing of secured residential for rent pipeline to FY24

City	Project	Units	FY20	FY21	FY22	FY23	FY24
London	Elephant Park	465
London	Silvertown Quays	450
London	The Timberyard, Deptford	440
London	High Road West	412
Milan	Milan Innovation District	273
Chicago	Southbank	509
Chicago	Lakeshore East	503
Total		3,052

1. Floor space measured as Net Lettable Area.

Lendlease FY19 Financial Results / 36

Communities projects

				Residential	Commercial
		Land payment	Completion	backlog land	backlog
Project	Location	model	date1	lots2	sqm ‘0003
Communities
Yarrabilba	QLD	Stagedpayment	FY47	14,105	2,046
Elliot Springs	QLD	Land management	FY61	10,605	1,050
Springfield Lakes	QLD	Land management	FY26	3,070	13
Shoreline	QLD	Land management	FY34	2,890	95
Calderwood Valley	NSW	Land management	FY35	3,480	156
Figtree Hill(formerlyGilead)	NSW	Stagedpayment	FY32	1,590	240
Bingara Gorge	NSW	Land management	FY26	1,160	79
St Marys - Jordan Springs	NSW	Upfrontpayment	FY22	820	296
The New Rouse Hill	NSW	Land management	FY21	450	-
Werrington	NSW	Upfrontpayment	FY23	330	31
Atherstone	VIC	Land management	FY26	2,870	41
Harpley	VIC	Land management	FY27	2,445	358
Aurora	VIC	Stagedpayment	FY27	2,000	86
Blakes Crossing	SA	Upfrontpayment	FY21	140	15
Alkimos	WA	Land management	FY27	1,205	22
Alkimos Vista	WA	Land management	FY24	540	-
Horizon Uptown	Americas	Upfrontpayment	FY30	1,459	-
Other communities				1	-
Total communities				49,160	4,528
Retirement
Ardor Gardens	Asia	Upfrontpayment	FY22	878	-
Total retirement				878	-
Total communities / retirement				50,038	4,528

1. The expected financial year in which the last land lot will be settled. Based on expected completion of underlying land lots, subject to change in delivery program. 2. Estimated backlog (including Retirement units) includes the total number of units in Group owned, Joint Venture and managed projects. The actual number of units for any particular project can vary as planning approvals are obtained. 3. Net developable land in relation to master-planned urban communities. The actual land area for any particular project can vary as planning approvals are obtained.

Lendlease FY19 Financial Results / 37

Development deal structuring tailored to local market

Communities	Urbanisation	Urbanisation	Urbanisation
	Apartments for Sale	Forward sale	Joint venture structure
Project examples • St Marys - Jordan Springs, Sydney • Yarrabilba, Brisbane	• Darling Square, Sydney • Elephant Park, London • Office: Daramu House, Barangaroo South, Sydney • Residential for rent: Cooper at Southbank, Chicago and Clippership Wharf Buildings 1 and 2, Boston • Paya Lebar Quarter, Singapore • Circular Quay Tower, Sydney
Land funding1 • Land ownership • Land management • Staged payments	• Land management • Staged payments • Land management • Staged payments • Land ownership via joint venture (including project financing)
Production funding1 • 100% on-balance sheet	• Largely 100% on-balance sheet • Capital partner progress or staged payments • Funded via joint venture (including project financing)
P&L returns • Development profit on sold product at settlement from 1 July 2018	• Development profit on sold product at settlement2 from 1 July 2018 • Construction margin on settlement3 • Development profit typically upfront at time of sale • Development management fees, construction margin4 and investment management fees4 during delivery • Development profit tied to equity interests • Development management fees, construction margin4 and investment management fees4 (including performance fees) during delivery
Cash returns (Development only) • On settlement	• On settlement • Over life of project during delivery • Linked to cash equity returns or sell down of investment typically post practical completion

1. Typical funding models used across segment examples. 2. With the exception of Singapore where revenue from residential apartments is recognised on percent complete basis. 3. Based on apartment projects delivered 100% on-balance sheet. 4. Only where Construction and / or Investments segments are engaged to play a role in the project.

Lendlease FY19 Financial Results / 38

Land payment models[1]

Overview of land payment / structuring models and implication for timing and risk share

Land payment model Upfront payment Staged payment Land management Option Outright land purchase Fixed payments Discretionary draw down Residual land value Overage When pricing is finalised Upfront Upfront Upfront On draw down of each phase At development completion More price certainty to land owner More development risk and value share to land owner ~~1~~ ~~2~~ ~~3~~ ~~4~~ ~~5~~	Land payment model Upfront payment Staged payment Land management Option Outright land purchase Fixed payments Discretionary draw down Residual land value Overage When pricing is finalised Upfront Upfront Upfront On draw down of each phase At development completion More price certainty to land owner More development risk and value share to land owner ~~1~~ ~~2~~ ~~3~~ ~~4~~ ~~5~~	Land payment model Upfront payment Staged payment Land management Option Outright land purchase Fixed payments Discretionary draw down Residual land value Overage When pricing is finalised Upfront Upfront Upfront On draw down of each phase At development completion More price certainty to land owner More development risk and value share to land owner ~~1~~ ~~2~~ ~~3~~ ~~4~~ ~~5~~	Land payment model Upfront payment Staged payment Land management Option Outright land purchase Fixed payments Discretionary draw down Residual land value Overage When pricing is finalised Upfront Upfront Upfront On draw down of each phase At development completion More price certainty to land owner More development risk and value share to land owner ~~1~~ ~~2~~ ~~3~~ ~~4~~ ~~5~~	Land payment model Upfront payment Staged payment Land management Option Outright land purchase Fixed payments Discretionary draw down Residual land value Overage When pricing is finalised Upfront Upfront Upfront On draw down of each phase At development completion More price certainty to land owner More development risk and value share to land owner ~~1~~ ~~2~~ ~~3~~ ~~4~~ ~~5~~	Land payment model Upfront payment Staged payment Land management Option Outright land purchase Fixed payments Discretionary draw down Residual land value Overage When pricing is finalised Upfront Upfront Upfront On draw down of each phase At development completion More price certainty to land owner More development risk and value share to land owner ~~1~~ ~~2~~ ~~3~~ ~~4~~ ~~5~~
Payment / draw down timing	Upfront	Staged	On draw down of each phase	On draw down of each phase	At development completion
Description • Land acquired and fully transferred to the Developer upfront • Land price and timing agreed upfront • Transfer of land plots may occur upfront, or, be staged to match payment schedule • Land price agreed upfront at either a fixed value or percentage of end value • Draw down of land plots at Developer discretion within longstop dates • Developer return metrics agreed upfront • Land value calculated at phase draw down; referral to independent expert if required • Draw down of land plots at Developer discretion within sunset dates • Developer earns a priority return, above which overage is shared with the Land Owner • May include a fixed minimum amount payable to the Land Owner in advance

1. Options are not discrete rather are on a continuum. Combinations of multiple options are therefore possible. Where agreements are in place with local or central government, contributions to social infrastructure, affordable housing or other costs may be provided in addition to or in lieu of direct land value.

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Artist's Impression: Sydney Metro Martin Place Integrated Station Development
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Construction Segment

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Image subject to change and further design development and planning approval
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Lendlease FY19 Financial Results / 40

Earnings drivers - Construction

EBITDA margin target 2-3%[1] ; Core backlog $15.6b

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Core Construction Non Core
Australia Asia Europe Americas Australia
$4.1b $0.4b $0.9b $4.3b $3.1b
FY20 47% FY20 65% FY20 58% FY20 59% FY20 52%
FY21 25% FY21 30% FY21 28% FY21 21% FY21 27%
Post FY21 28% Post FY21 5% Post FY21 14% Post FY21 20% Post FY21 21%
$6.9b $0.8b $1.7b $6.2b $5.4b
Region
12 months
Revenue last
Backlog realisation
Backlog
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1. Target was revised at HY19 following the decision that Engineering and Services business is no longer a required part of the Group’s strategy.

Lendlease FY19 Financial Results / 41

Core construction FY19

Overview

• Provides project management, design and construction services, predominantly in the defence, mixed use, commercial and residential sectors

• Financial returns are generated via project management and construction management fees, in addition to construction margin

Drivers[1]

Diversity by sector, client and region

• Revenue of $9.7b

• EBITDA of $211m, EBITDA margin 2.2%

• Includes impact from internal project margin shifting to Development segment

Australia: Consistently solid profit contribution

• Revenue of $4.1b, EBITDA margin 3.1%

Americas: Activity moderating, internal pipeline growing

Revenue down 9% to $4.3b, EBITDA margin 1.1%

Europe: Contribution from higher margin contracts in the period Revenue up 38% to $0.9b, EBITDA margin 4.3%

Asia: Focus remains on internal pipeline

• Revenue down 25% to $0.4b, EBITDA margin (0.2%)

	Performance		FY18	FY19
	EBITDA mix	%	18	14
	EBITDA margin	%	3.1	2.2
	New work secured Backlog	$b $b	10.0 15.2	9.9 15.6

Outlook

Diversity by sector, client and region

• New work secured of $9.9b

• Australia $4.5b: Sydney Metro Martin Place and Victoria Cross integrated station developments, Gold Coast Airport Southern Terminal Expansion, Stage 2 Garden Island Critical Works Delivery Phase, Melbourne Park Redevelopment Stage 3

• Americas $3.7b: several high rise residential contracts that reinforce leadership position in target markets

• Backlog revenue of $15.6b

• 19% integrated major projects[2] , margin reported in Development segment

• Includes Australia $6.9b, Americas $6.2b

• Preferred bidder status of c.$9b including

• Australia: Tweed Heads Hospital Main Works, several Defence contracts

• Americas: 30 Van Ness, Lakeshore East Cirrus and Cascade

• Asia: The Exchange TRX – Residential and Hotel

• Europe: Richmond House and Glen Parva

1. Comparative year the year ended 30 June 2018. 2. Includes all Construction projects with backlog greater than $100 million, which represents 81% ($12.6 billion) of secured backlog.

Lendlease FY19 Financial Results / 42

Core construction earnings

EBITDA ($m)

EBITDA margin

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FY18 FY19 FY18 FY19
296
5.2%
4.3%
211
195
3.3%
3.1% 3.1%
2.8%
126 2.2%
1.4%
63 1.1%
40 46
23
15
(1) (0.2%)
Australia Asia Europe Americas Total Australia Asia Europe Americas Total
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EBITDA Europe (£m[1] )

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EBITDA Americas (US$m)
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22
13
FY18 FY19
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49
FY18
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33
FY19
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1. Major currency in region.

Lendlease FY19 Financial Results / 43

Core construction backlog

Backlog ($b)

FY19 backlog by region

Australia Asia Europe Americas

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15.2 15.7 15.2 15.6
13.7
FY15 FY16 FY17 FY18 FY19
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FY19 backlog by client

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Lendlease Corporate Government
19%
43% Major Project [1]
Backlog
Revenue
38%
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40%
44%
$15.6b
11% 5%
FY19 backlog by sector
Transport Residential Hotel/Entertainment
Defence Commercial Social Infrastructure
Other
4% 5%
14%
27%
Major Project [1]
Backlog
Revenue
24%
11%
15%
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1. Includes all Construction projects with backlog greater than $100m, which represents 81% ($12.6b) of secured backlog.

Lendlease FY19 Financial Results / 44

Core construction backlog by region

Group ($b)

Australia ($b)

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9.9 (9.7) 4.5 (4.1)
15.2 0.2 15.6 6.5 - 6.9
Book to bill¹: 1.0 Book to bill¹: 1.1
FY18 New work Revenue FX and FY19 FY18 New work Revenue Other FY19
secured realised Other secured realised
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Europe ($b)

Americas ($b)

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1.2 (0.9)
3.7 (4.3)
(0.1) 1.7
6.3 0.5 6.2
1.5
Book to bill¹: 1.3 Book to bill¹: 0.9
FY18 New work Revenue FX and FY19 FY18 New work Revenue FX and FY19
secured realised Other secured realised Other
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1. Ratio calculated as new work secured over revenue realised to the nearest million.

Lendlease FY19 Financial Results / 45

Australia: Major Projects[1,2]

		Contract	Contract	Secured	Completion
Project	Location	type3	value4 ($m)	date	date5	Sector
CrownSydneyHotel Resort	NSW	MC	1,081.7	FY15	FY21	Hotel/Entertainment
AIR 7000Phase2B	SA	MC	470.0	FY16	FY20	Defence
Victoria CrossIntegrated Station Development	NSW	D&C	465.5	FY19	FY24	Transport
OsborneNavalShipbuildingProject (Surface Ships)	SA	MC	448.2	FY18	FY20	Defence
New AirCombat Capability- RAAF Tindal	NT	MC	431.5	FY16	FY20	Defence
HMAS Cerberus- DeliveryPhase	VIC	MC	426.8	FY18	FY25	Defence
SydneyMetroMartin PlaceIntegrated Station Development	NSW	D&C	378.66	FY19	FY24	Social Infrastructure
ADF Air Traffic ControlComplex InfrastructureProject	National	MC	377.6	FY16	FY20	Defence
130Lonsdale Street	VIC	D&C	331.2	FY18	FY20	Commercial
Melbourne Connect (formerly CarltonConnectInitiative)	VIC	D&C	310.9	FY18	FY21	Other
60 Martin Place	NSW	LS	285.4	FY16	FY20	Commercial
Melbourne Quarter-Two Melbourne Quarter	VIC	D&C	283.7	FY18	FY21	Commercial
Melbourne Quarter - EastTower	VIC	D&C	273.6	FY18	FY20	Residential
Stage2Garden Island Critical WorksDeliveryPhase	NSW	MC	268.2	FY19	FY24	Defence
Australian National University Union Court Redevelopment	ACT	D&C	258.6	FY18	FY20	Social Infrastructure
Growler Airbourne Attack Facility Phase 1 & 2 Project	QLD/NT	MC	254.6	FY16	FY20	Defence
Gosford Hospital Redevelopment	NSW	LS	254.2	FY16	FY20	Social Infrastructure
Rod Laver Arena	VIC	MC	238.1	FY16	FY20	Hotel/Entertainment
Joan Kirner Women's and Children's Hospital	VIC	MC	236.6	FY16	FY21	Social Infrastructure
Land 121 Stage 2 Unit Sustainment Facilities	National	MC	236.3	FY16	FY20	Defence
Stage 1 Garden Island Delivery Phase	NSW	MC	207.1	FY18	FY22	Defence
Silverwater Correctional Facility Expansion	NSW	D&C	196.6	FY18	FY21	Social Infrastructure
Gold Coast Airport, Southern Terminal Expansion	QLD	D&C	195.6	FY19	FY21	Transport
BaptistCare SAHF	NSW	D&C	192.6	FY17	FY21	Residential
Delamere Air Weapons Range & Growler Mobile Threat Training Emitter	NT	MC	191.5	FY17	FY20	Defence
Monash University Technology Education Building	VIC	D&C	153.8	FY19	FY20	Social Infrastructure
Goulburn Valley Health (previously Hospital) Shepparton Redevelopment	VIC	MC	149.4	FY18	FY21	Social Infrastructure
Cessnock Correctional Facility Expansion	NSW	D&C	106.8	FY18	FY20	Social Infrastructure

1. Disclosure of major projects is subject to client approval. This could impact the projects available for disclosure. 2. Backlog revenue as at 30 June 2019 for the projects listed totals $4.1b, representing 59% of total Australia backlog revenue. 3. Contract types are Managing Contractor (MC), Lump Sum (LS) and Design and Construct (D&C). 4. Contract value for the project as approved by the client for disclosure. Where Lendlease is in a joint venture, it is the Lendlease share. 5. Based on expected completion date of underlying buildings, subject to change in delivery program. 6. Excludes new commercial buildings, pedestrian connections and retail space as these are commercial in confidence.

Lendlease FY19 Financial Results / 46

Asia: Major Projects[1,2]

		Contract	Contract	Secured	Completion
Project	Location	type3	value4 ($m)	date	date5	Sector
Paya Lebar Quarter	Singapore	GMP	860.5	FY16	FY20	Commercial and Residential
The Exchange TRX (formerly The Lifestyle Quarter) - Retail	Kuala Lumpur	MC	521.9	FY18	FY22	Commercial
Ardor Gardens	Shanghai, China	CM	198.4	FY19	FY22	Residential

Europe: Major Projects[1,2]

		Contract	Contract	Secured	Completion
Project	Location	type3	value4 ($m)	date	date5	Sector
Perry Barr Residential Scheme	Birmingham	MC	592.4	FY19	FY22	Social Infrastructure
Elephant Park - West Grove	London	D&C	395.5	FY16	FY20	Residential
Elephant Park - Park Central North	London	D&C	285.6	FY18	FY21	Residential
1 Triton Square	London	D&C	263.3	FY17	FY20	Commercial
Elephant Park - East Grove	London	D&C	242.1	FY18	FY21	Residential
Google European HQ	London	CM	194.5	FY18	FY22	Commercial
International Quarter London - Building 3	London	D&C	193.8	FY17	FY20	Commercial
245 Hammersmith Road	London	D&C	187.3	FY17	FY20	Commercial
Manchester New Square	Manchester	D&C	150.6	FY18	FY21	Residential
St John's Manchester Goods Yard	Manchester	D&C	143.1	FY19	FY21	Commercial
The Timberyard, Deptford - Cedarwood Square	London	D&C	120.4	FY17	FY20	Residential
Oxford House	London	D&C	117.3	FY19	FY21	Commercial

1. Disclosure of major projects is subject to client approval. This could impact the projects available for disclosure. 2. Backlog revenue as at 30 June 2019 for the projects listed totals $0.7b (Asia) and $1.4b (Europe), representing 88% (Asia) and 82% (Europe) of total backlog revenue for these regions. 3. Contract types are Managing Contractor (MC), Guaranteed Maximum Price (GMP), Design and Construct (D&C) and Construction Management (CM). 4. Contract value for the project as approved by the client for disclosure. Where Lendlease is in a joint venture, it is the Lendlease share. 5. Based on expected completion date of underlying buildings, subject to change in delivery program.

Lendlease FY19 Financial Results / 47

Americas: Major Projects[1,2]

		Contract	Contract	Secured	Completion
Project	Location	type3	value4 ($m)	date	date5	Sector
Jacob K. Javits Convention Center	New York	LS	870.3	FY17	FY21	Hotel/Entertainment
New York Methodist Hospital	New York	CM	444.4	FY16	FY20	Social Infrastructure
Clippership Wharf	Boston	GMP	315.3	FY16	FY21	Residential
Avalon - 1865 Broadway	New York	CM	262.1	FY16	FY20	Residential
Half and N Street	Washington, D.C.	GMP	167.7	FY17	FY20	Residential

1. Disclosure of major projects is subject to client approval. This could impact the projects available for disclosure. 2. Backlog revenue as at 30 June 2019 for the projects listed totals $0.7b, representing 11% of total Americas backlog revenue. 3. Contract types are Guaranteed Maximum Price (GMP), Lump Sum (LS) and Construction Management (CM). 4. Contract value for the project as approved by the client for disclosure. Where Lendlease is in a joint venture, it is the Lendlease share. 5. Based on expected completion date of underlying buildings, subject to change in delivery program.

Lendlease FY19 Financial Results / 48

Non Core: Major Projects – Engineering[1,2]

		Contract	Contract	Secured	Completion
Project	Location	type3	value4 ($m)	date	date5	Sector
Melbourne Metro Tunnel Project	VIC	D&C	1,746.7	FY18	FY24	Transport
NorthConnex M1 / M2 Tunnel	NSW	D&C	1,314.0	FY15	CY20	Transport
Northern Connector	SA	D&C	885.0	FY16	FY20	Transport
Caulfield to Dandenong	VIC	ALL	564.0	FY16	FY20	Transport
Northern Road 2	NSW	CON	400.3	FY17	FY20	Transport
Woolgoolga to Ballina - Section 10 & 11	NSW	CON	305.0	FY18	FY20	Transport
Gawler Rail Electrification	SA	D&C	300.7	FY18	FY21	Transport
Northern Road 3	NSW	D&C	253.9	FY16	FY20	Transport
Ballarat Line Upgrade	VIC	ALL	212.3	FY18	FY20	Transport
Southern Program Alliance	VIC	ALL	191.5	FY18	FY22	Transport
Southern Program Alliance - Additional Works Package 1	VIC	ALL	187.0	FY19	FY21	Transport
Gateway / Pacific Motorway Merge	QLD	D&C	153.2	FY18	FY20	Transport
Kingsford Smith Drive	QLD	D&C	n/a6	FY16	FY21	Transport
WestConnex 3A M4-M5 Link Tunnels	NSW	D&C	n/a6	FY19	FY23	Transport

1. Disclosure of major projects is subject to client approval. This could impact the projects available for disclosure. 2. Backlog revenue as at 30 June 2019 for the projects listed totals $3.7b, representing 97% of the total Australia Engineering backlog revenue. 3. Contract types are Design and Construct (D&C), Alliance (ALL) and Construction Only (CON). 4. Contract value for the project as approved by the client for disclosure. Where Lendlease is in a joint venture, it is the Lendlease share. 5. Based on expected completion date of infrastructure, subject to change in delivery program. 6. Contract value is subject to commercial in confidence and not available for disclosure.

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Artist’s impression: Elephant Park, London
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Investments Segment

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Image subject to change and further design development and planning approval
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Lendlease FY19 Financial Results / 50

Earnings drivers - Investments

ROIC target 8-11%[1] ; Invested capital $3.6b

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Ownership Earnings Operating Earnings
Capital intensive activities Capital light activities
Funds Retail and
Co-investment Retirement US Military US Telco Military
Management Office Asset
positions in Living Housing Infrastructure Housing
Platform Management
managed funds
$13.3b AUM
$35.2b
$1.7b $1.4b $211m $203m 52,214 units
FUM $15.4b AUM
Property and
Funds development
Asset and
Distributions Equity Equity management management
Income and property
and capital investment investment fees fees
capital growth management
growth returns returns
fees
% of FUM % of value
driver
Asset
Number of
High quality Occupancy performance,
Occupancy operators per
assets, rate, turnover leasing and
rate, growth tower, lease FUM growth Rent growth
diversified rate, growth development
rate, discount term, growth and opex and opex
across sectors rate, discount activity, AUM
rate and opex rate and
and geography rate and opex growth and
discount rate
opex
FUM / Assets
Invested capital
Returns and Metrics Returns and Metrics
Value drivers Value drivers
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1. Through-cycle target based on rolling three to five year timeline.

Lendlease FY19 Financial Results / 51

Investments FY19

Overview

• Owns and/or manages investments including a leading wholesale investment management platform and also includes the Group’s ownership interests in co-investments, Retirement and US Military Housing

• Financial returns include fund and asset management fees, and yields and capital growth on ownership interests

Drivers[1]

• Ownership earnings $345m

• Co-investments

• Income driven by higher returns from Australian commercial portfolio

• Revaluations from strong leasing and asset markets in Australia and Asia

• Office precinct at Barangaroo South generated strong interest from capital partners

• Retirement

• 21% uplift in resales across the portfolio following industry recovery and introduction of alternative contract types

• Lower ownership in FY19 vs FY18

• Equity returns on US Military Housing portfolio

• Operating earnings $144m

• FUM growth of 17% driving higher base fees

• Retail and Office AUM of $15.4b, up 21%

• US Military Housing AUM of $13.3b

	Performance		FY18	FY19
	Core business EBITDA mix	%	41	33
	ROIC Invested capital	% $b	15.5 3.3	10.8 3.6
	Co-investment revaluations	$m	182	103
	Co-investment revaluations / Core business operatingEBITDA	%	11.1	6.9

Outlook

• Well positioned to deliver future recurring earnings

• Integrated business model key source of growth with c.$50b[2] investment grade assets to be created from development pipeline

• Capital partner initiatives in FY19 to drive future growth: US residential investment partnership; Asia Pacific data centre partnership

• Ownership earnings

• $1.7b co-invested in funds, capital partner alignment

• $1.4b of capital in retirement investment

• Investment in US Military Housing and US telecommunications assets

• Operating earnings

• FUM of $35.2b, c.150 institutional investors

• c.$1b from new residential for rent asset class

• c.$3.3b of additional secured future FUM across the Group’s development pipeline

• Significant opportunities from the remaining development pipeline

• $15.4b of retail and office assets under management

• 52,214 US Military Housing units under management, AUM of $13.3b

1. Comparative year the year ended 30 June 2018. 2. Includes San Francisco Bay Area project secured post balance date.

Lendlease FY19 Financial Results / 52

Investments earnings / ownership

EBITDA by region ($m)

Investments EBITDA by activity ($m)

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FY18 FY19 FY18 FY19
536
669
483 489
345
330
133 144
124
100
55 50
7 9
Australia Asia Europe Americas Total Ownership interests¹ Operating earnings²
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Investments[3] by product ($b)

Investments[3] by region ($b)

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Co-investments Retirement US Military Housing Other Australia Asia Europe Americas
3.4 3.7 3.4 3.7
4%
10% 9% 11%
6% 6% 11% 1%
19%
39%
38%
80%
69%
51% 46%
FY18 FY19 FY18 FY19
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1. Returns derived from co-investments, the Group’s Retirement investment, US Military Housing equity investment and other investments. 2. Earnings primarily derived from the investment management platform and the management of US Military Housing operations. 3. The Group’s assessment of market value of ownership interests. Total invested capital in the segment of $3.6b in FY19.

Lendlease FY19 Financial Results / 53

Funds Under Management[1] (FUM)

FUM ($b)

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CAGR² of 13.4%
35.2
30.1
26.1
23.6
21.3
FY15 FY16 FY17 FY18 FY19
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FY19 FUM by asset class

FY19 FUM by region

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Retail Office Industrial Residential Other Australia Asia Europe Americas
4% [2%]
3% [3%][ 2%]
23%
42%
$35.2b $35.2b
50%
71%
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1. The Group’s assessment of market value. 2. Compound Annual Growth Rate.

Lendlease FY19 Financial Results / 54

FUM[1] by region

Group ($b)

Australia ($b)

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3.7 (0.9) 2.0 0.3 35.2 1.9 (0.5) 1.0 - 24.8
22.4
30.1
FY18 Additions Divest- Revaluations FX and FY19 FY18 Additions Divest- Revaluations Other FY19
ments Other ments
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Asia ($b)

Europe ($b)

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0.3 8.2
1.2 (0.4) 0.8 1.4 - - 0.1 - 1.5
6.3
FY18 Additions Divest- Revaluations FX and FY19 FY18 Additions Divest- Revaluations FX and FY19
ments Other ments Other
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1. The Group's assessment of market value.

Lendlease FY19 Financial Results / 55

FUM[1] by region

Australia FUM	Fund type	Asset class	FY18($b)	FY19($b)
Australian Prime PropertyFund Retail	Core	Retail	5.4	5.7
Australian Prime PropertyFund Commercial	Core	Office	4.6	5.1
Lendlease International Towers SydneyTrust	Core	Office	4.1	4.6
Managed Investment Mandates	Core	Various	3.6	4.4
Lendlease One International Towers SydneyTrust	Core	Office	2.5	2.7
Australian Prime PropertyFund Industrial	Core	Industrial	0.9	1.0
Lendlease Sub Regional Retail Fund	Core	Retail	0.6	0.6
Lendlease Public Infrastructure Investment Company	Core	Social Infrastructure	0.4	0.4
Lendlease Real Estate Partners New Zealand	Core	Retail	0.3	0.3
Total Australia			22.4	24.8
Asia FUM	Fund type	Asset class	FY18($b)	FY19($b)
Paya Lebar Quarter	Value Add	Retail and Office	1.92	3.3
Lendlease Asian Retail Investment Fund	Core	Retail	2.5	2.8
ParkwayParade PartnershipLimited	Core Plus	Retail	1.4	1.5
Lendlease Jem Partners Fund Limited	Core	Retail	0.5	0.6
Total Asia			6.3	8.2
Europe FUM	Fund type	Asset class	FY18($b)	FY19($b)
Lendlease Retail LP	Core	Retail	1.3	1.2
Lendlease Residential Investment Partnership	Core	Residential	0.1	0.3
Total Europe			1.4	1.5
Americas FUM	Fund type	Asset class	FY18($b)	FY19($b)
Lendlease Americas Residential Partnership	Value Add	Residential	-	0.7
Total Americas			-	0.7

1. The Group's assessment of market value. 2. Reported 70% joint venture share only.

Lendlease FY19 Financial Results / 56

Major fund summary[1]

FY19 funds management platform

							**ARIF7 1 **	**ARIF7 3 **
		APPFR2	APPFC3	APPFI4	LLITST5	LLOITST6	(Somerset)	(Jem)	PPPL8	LLRP9
Total assets	$b	5.7	5.1	1.0	4.6	2.7	0.9	1.8	1.5	1.2
Gearing	%	19.3	5.5	6.1	13.6	18.4	59.6	40.1	35.8	-
Co-investment	%	1.7	8.0	10.5	6.210	2.5	14.4	20.1	6.1	-
Co-investment	$m	74	369	96	238	54	44	201	43	-
Region		Aus	Aus	Aus	Aus	Aus	Asia	Asia	Asia	Eur
Asset class		Retail	Office	Industrial	Office	Office	Retail	Retail	Retail	Retail
Number of assets	no.	11	21	34	4	1	1	1	1	2
Occupancy	%	97.8	95.6	99.1	92.7	99.8	99.4	99.1	99.9	94.6
Weighted average caprate	%	4.9	5.0	6.5	4.8	4.8	4.5	4.3	5.0	5.2

1. Does not comprise Lendlease’s complete Funds Management Platform. 2. Australian Prime Property Fund Retail. 3. Australian Prime Property Fund Commercial. 4. Australian Prime Property Fund Industrial. 5. Lendlease International Towers Sydney Trust (Barangaroo South T2 and T3, International House and Towns Place Car Park). 6. Lendlease One International Towers Sydney Trust (Barangaroo South T1). 7. Lendlease Asian Retail Investment Fund. 8. Parkway Parade Partnership Limited. 9. Lendlease Retail LP. 10. Lendlease’s ongoing interest is 3.9%.

Lendlease FY19 Financial Results / 57

Investments[1]

Investments1
Australia co-investments		FY19 Lendlease interest	FY18($m)	FY19($m)
Australian Prime PropertyFund Commercial		8.0%	292	369
Lendlease International Towers SydneyTrust		6.2%2	515	238
Australian Prime PropertyFund Industrial		10.5%	75	96
Craigieburn Central		25.0%	80	82
Australian Prime PropertyFund Retail		1.7%	76	74
Lendlease One International Towers SydneyTrust		2.5%	246	54
Lendlease Public Infrastructure Investment Company		10.0%	41	40
Lendlease Sub Regional Retail Fund		9.9%	39	36
Lendlease Real Estate Partners New Zealand		5.3%	10	11
Other			1	1
Total Australia			1,375	1,001
Asia co-investments		FY19 Lendlease interest	FY18($m)	FY19($m)
Lendlease Asian Retail Investment Fund (ARIF)
ARIF 1 (313@somerset)		14.4%	39	44
ARIF 2 (Setia City Mall)		38.2%	27	30
ARIF 3(Jem)		20.1%	173	201
Paya Lebar Quarter		30.0%	-	284
313@somerset		25.0%	89	99
ParkwayParade PartnershipLimited		6.1%	40	43
Total Asia			368	701
Americas			FY18	FY19
US MilitaryHousing,invested equity	$m		195	211
Telecommunications assets,invested equity	$m		119	203
Telecommunications towers	no.		221	308

1. The Group's assessment of market value of ownership interests. 2. Lendlease’s ongoing interest is 3.9%.

Lendlease FY19 Financial Results / 58

Assets Under Management (AUM)[1] by region

Retail and Office

FY19 GLA[2]

Retail and Office	FY19 GLA2
	sqm '000	FY18 ($b)	FY19 ($b)
Australia	785.5	7.3	7.5
Asia	369.0	4.6	7.2
Europe	141.7	0.8	0.7
Total	1,296.2	12.7	15.4
FY19 US Military Housing

					Avg portfolio life
	AUM ($b)	Housing units	Lodging units	Total units	(years)
Total	13.3	39,783	12,431	52,214	37

1. The Group's assessment of market value. 2. Gross Lettable Area.

Lendlease FY19 Financial Results / 59

Retirement summary

Retirement summary
Value drivers1 FY18 FY19 Long term growth rate % 3.5 3.5 Discount rate % 12.3 12.3 Average length of stay - ILUs years 11 11 Number of established units no. 12,717 12,785 Units resold no. 694 842 Development Pipeline2 no. 4,422 3,829 Pipeline $b 1.6 1.8 Sales/Settlements no. 144 150 Sales/Settlements $m 72.3 86.0	Investment ($m)
	1,303 1,397

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1,397
1,303
FY18 FY19
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FY19 units and villages by state[1]

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Units Villages
26
17
12
10
4,088
3,316
2,932
4
3
1,636
529
284
VIC NSW QLD WA SA ACT
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1. 100% of Retirement Living business. 2. Includes aged care beds.

Lendlease FY19 Financial Results / 60

Important notice

This document (including the appendix) 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 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.

Prospective financial information and forward looking statements, if any, have been based on current expectations about future events and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations expressed in or implied from such information or statements.

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.

A reference to FY19 refers to the full year period ended 30 June 2019 unless otherwise stated. All figures are in AUD unless otherwise stated.