LENDLEASE GROUP - Annual Report 2021

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16 August 2021
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Lendlease Group 2021 Full Year Results Announcement, Presentation and Appendix

Lendlease Group today announced its results for the year ended 30 June 2021. Attached is the FY21 Results Announcement, Presentation and Appendix.

A summary of Lendlease's Major Urbanisation Projects will be released on the 30 August 2021 in conjunction with the Market Briefing.

ENDS

FOR FURTHER INFORMATION, PLEASE CONTACT:

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

Authorised for lodgement by the Lendlease Group Disclosure Committee

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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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1922 16 August 2021 August 201 98
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Profit recovery despite COVID impacts, strategic agenda progressed

FY21 Result[1]

Statutory Profit after Tax of $222m
Core operating Profit after Tax of $377m, up 83%
Full year distributions of 27 cps, payout ratio of 49%
- Final distribution of 12 cps
Earnings Per Security of 54.8c, up 60% and Return on Equity of 5.4%
Non core loss after tax of $181m, including additional provision of $168m (after tax)

Global Chief Executive Officer, Tony Lombardo said, “As an international real estate group with a presence in targeted global gateway cities, the pandemic has had a significant impact across each of our markets and operating segments. Despite COVID impacts, profit recovered and the Group made significant strategic progress.”

The Development segment experienced production delays, with ongoing impacts on leasing and sales across active projects. A $60m pre tax provision was taken following weaker rental demand and lower rents for the recently completed apartments for rent buildings at Elephant Park. Notwithstanding COVID impacts, several key initiatives were progressed including an investment partner being secured for the first two residential towers at One Sydney Harbour. These initiatives underpinned an improvement in Development ROIC to 7.2%, albeit still below target.

Construction activity was constrained by delays in the commencement of new projects, site shutdowns and lower productivity. The impact of social distancing protocols across our sites was reflected in a 16% decline in revenue compared with a 9% decline in hours worked. Despite these COVID related impacts, the segment delivered a good result. The EBITDA margin rose to 2.7%, towards the upper end of the target range of 2-3%, aided by disciplined cost management.

The Investments segment generated a return on invested capital of 5.9%, just below the target range of 6-9%. Investment management earnings were resilient, although lower due to a significant performance fee in the prior year. Returns on the Group’s investment portfolio were also impacted by disruption across underlying assets including co-investment yields being impacted by c.$40m[2] in rental assistance provided to tenants across the platform.

The Group entered FY22 in a strong financial position with gearing of 5.0%. This provides capacity to support the Group’s strategic priorities. During the year, several strategic divestments were completed, enabling greater focus on areas where our competitive edge is strongest. Post balance date, an agreement was also entered into with Service Stream for the sale of the Services business for a purchase price of $310m.

1 Comparative period the full year ended 30 June 2020, unless otherwise stated.

2 Represents total rental assistance in FY21 across Lendlease managed assets.

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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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1922 16 August 2021 August 201 98
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Acting Group Chief Financial Officer, Frank Krile said: “The Group enters FY22 with gearing below our 10-20% target range, providing the Group with significant funding capacity. The strategic divestments executed throughout the year, together with our balance sheet strength, puts the Group in a solid position to navigate through further COVID uncertainty.”

Strategic Priorities

The Group made substantial progress on its strategic priorities, with a number of additional projects and partnerships secured across our focus areas in the Development and Investments segments.

A total of $8.4b was added to the development pipeline, including six urbanisation projects with an end value of $7.4b:

Smithfield Birmingham to provide more than 3,000 new homes;
60 Guest Street, Boston to become a state-of-the-art life sciences building;
1 Java Street to transform a New York city block into apartments for rent;
La Cienega, our first urbanisation project in Los Angeles;
Inaugural development for Lendlease Data Centre Partners in Greater Tokyo; and
Certis Centre Singapore, involving the redevelopment of two office buildings.

Investment partnerships worth $5.1b were formed across five projects. This will drive growth in funds under management, including exposure to the rapidly growing sub sectors of Life sciences and Data centres.

Business Review

A wide-ranging business review commenced by the CEO following his appointment is yet to complete, although preliminary findings have been reached. The strategy and strategic priorities have been confirmed. The Group Core Operating ROE target range of 8-11% is anticipated to be met by FY24.

The revised organisational structure is designed to create a more consistent operating model across all regions, embed an enterprise wide approach and streamline group functions. Targeted cost savings from the revised structure are greater than $160m annualised, with benefits expected to be realised from H2 FY22. An estimated restructuring charge associated with the revised organisational structure of $130m to $170m pre tax is expected to be accounted for in H1 FY22 Statutory Profit.

“The recently announced changes to the organisational structure better position the Group to accelerate development production, continue to deliver our construction backlog and grow our Investments platform in a more focused and efficient way”, said Mr Lombardo.

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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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1922 16 August 2021 August 201 98
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The review of the development portfolio reaffirmed its underlying strength, underpinned by a capital efficient business model:

$8b+ per annum production and 10-13% ROIC targets are anticipated to be met by FY24
Refinement of investment partner approach to drive improved alignment between development profit with risk/reward and cash flows from FY22.

As part of this exercise, a small number of projects have been identified where a material change in development strategy is under consideration. A range of strategic options is being considered to expedite the release of capital on these projects. Pursuing these options is expected to result in an estimated impairment expense in H1 FY22 Statutory Profit of $230m to $290m pre tax, representing 5-7% of current Development segment capital.

“The review of the development portfolio reaffirmed the underlying strength of the $114b development pipeline across targeted gateway cities. We are confident that production will accelerate to more than $8b per annum by FY24”, said Mr Lombardo.

Outlook

The enforced lockdowns from the COVID pandemic continue to have significant ramifications for real estate markets across the global gateway cities in which the Group operates. While we are confident these cities will rebound strongly over the medium term, FY22 is expected to be a challenging year.

In FY22, anticipated returns for our core operating segments are:

Development ROIC: 2 – 5% v target of 10 – 13%;
Construction EBITDA margin: 2 – 3% v target of 2 – 3%; and
• Investments ROIC: 5 – 8% v target of 6 – 9%.

“As an international real estate group, we expect FY22 to be the cyclical low point for both development production and profitability. We are targeting to deliver solid returns across the Construction and Investments segments, although activity levels are likely to continue to be affected by the pandemic” said Mr Lombardo.

Statutory Profit in H1 FY22 is expected to include a restructuring charge and impairment expense, based on outcomes arising from the business review, in line with the estimates outlined above[3] .

Further information regarding Lendlease’s results is set out in the Group’s financial results presentation for the full year ended 30 June 2021 and is available on www.lendlease.com.

3 These items will be excluded from the Group’s measure of Core operating returns across the segments.

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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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1922 16 August 2021 August 201 98
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ENDS

FOR FURTHER INFORMATION, PLEASE CONTACT:

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

2021 Key Dates for Investors
Securities quoted ex-distribution on the Australian Securities Exchange	20 August
Final distribution record date	23 August
Market Briefing	30 August
Final distribution payable	15 September
Annual General Meetings	12 November

Authorised for lodgement by the Lendlease Group Disclosure Committee

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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

2021 Full Year Results

16 August 2021

Sydney: Darling Square on Gadigal Country and Wangal Country

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Lendlease FY21 Financial Results

Acknowledgement of Country

As a developer, builder and manager of assets on land across Australia, we pay our respects to the Traditional Owners, especially their Elders past and present, and value their custodianship of these lands.

Lendlease FY21 Financial Results

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Summary
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FY21 results Market Briefing
16 AUGUST 2021 30 AUGUST 2021
Reset Create Thrive
Group performance
FY22 FY23/24 FY25+
Financial performance
Purpose and strategy
Operational update
Operating segments strategies
Business review and outlook Financial strategy
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Lendlease FY21 Financial Results

Together we create value through places where communities thrive

Our strategy

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Employ our placemaking expertise and integrated business model in global gateway cities to deliver urbanisation projects and investments that generate social, environmental and economic value.

Lendlease FY21 Financial Results

Use image on page 206 of AR

Group Performance

Birmingham: Smithfield Artist’s impression

Tony Lombardo Global CEO

Lendlease FY21 Financial Results

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FY21
result
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Financial performance

Reflects COVID-19 impacts across the Group and additional provisioning in the Non core segment

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$377m $222m Strong
Core operating [1] Profit after Tax Statutory Profit after Tax Financial position
54.8c 5.4% [2]
($181)m 5.0% [4]
Earnings per Return
Non core segment Loss Gearing
stapled security on Equity
27 [3] cps 49% $26m $1.7b
Distributions Payout ratio Investments segment property revaluations Cash and cash equivalents
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Operating performance

Solid growth in Pipeline and FUM despite COVID-19 impacts on Development and Investments activity

Statutory profit excluding Investments segment property revaluations and Non core segment result.
Return on Equity is calculated using the Core operating Profit after Tax divided by the arithmetic average of beginning, half and year end securityholders’ equity.
Final dividend component zero franking. Interim dividend component of 11.2 cents per share 50% franked.
Net debt to total tangible assets, less cash. 5. Internal and external.

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Development Construction Investments
$14.5b $6.4b $39.6b
Work In Progress Revenue Funds Under Management
$3.8b $8.8b [5] $28.5b
Production New work secured Assets Under Management
$113.6b $14.9b [5] $3.5b
Pipeline Backlog revenue Investments
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Lendlease FY21 Financial Results

COVID

Impacts and response to pandemic

Significant ramifications for real estate markets globally

Adverse impacts across all Lendlease markets and operating segments
EPS dilution from additional equity capital raised to strengthen balance sheet
Initial mitigating actions: Overhead and employee cost reductions, Reduced project expenditure
Health and Safety paramount: range of measures to protect our people, customers, residents and the community
People support: Employee hardship and wellbeing fund
Identified project substantially impacted, but unable to be quantified as solely related to COVID.
Negative pricing differential on Tower One relative to Tower Two on capital solutions achieved.
Represents total rental assistance in FY21 across Lendlease managed assets.

Development

EBITDA related impacts:
−Elephant Park c.$60m[1]
−Tower One, OSH c.$40m[1,2]
−IQL delay in development JV
−Lockdowns
Strong established housing market:
−Boost to luxury apartments
−Demand for new detached dwellings
Origination opportunities secured with partners

Construction

EBITDA related impacts:
−Lower productivity −Periodic site shutdowns
−New commencement delays
Revenue down 16%, hours worked down 9%
Cost management measures to mitigate margin erosion
Stronger public sector activity
Decline in US private sector

Investments

EBITDA related impacts:
−c.$40m in rental assistance[3]
−Retail centre shutdowns
−Subdued leasing activity
Resilience in asset prices:
−Portfolio value up slightly
−Limited new opportunities
−Retirement Living recovering

Lendlease FY21 Financial Results 8

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Health and
Safety
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Key performance indicators

Key metric of critical incidents at record low frequency rate of 0.66; 73% lower than first reported level (FY14)
Operations not experiencing a critical incident at a record high of 94%

Critical Incident Frequency Rate[1] Operations without a Critical Incident[2 ] (%) Lost Time Injury Frequency Rate[1]

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Fatalities

Two fatalities occurred on our operations during FY21
Our thoughts continue to be with the families of the two subcontractor employees and everyone impacted by these tragic events
Compliance with Global Minimum Requirements (GMRs) confirmed

Reducing incidents through continuous improvement, advocacy for industry change

Over 20 years of transparent safety reporting
Fourth edition of EH&S GMRs launched in FY21 (first edition 2008)
Targeted work with industry in response to critical incidents:
Calculated to provide a rate of instances per 1,000,000 hours worked.
−Supply chain partner to commence reporting fatalities in their Annual Report
−Negotiated the elimination of identified elevator design flaw
An event that caused, or had the potential to cause, death or permanent disability. This is an indicator unique to Lendlease.

Lendlease FY21 Financial Results 9

FY21 key achievements

Environmental, Social and

$47.3 million Social value created 18.9% of $250 million target by FY25

Governance

Launched Mission Zero Raising awareness of our carbon targets

MIND[2] To be100% powered by renewable energy

Net Zero >50% Carbon of Melbourne Quarter precinct is green and US Multifamily publicly accessible portfolio

100% Construction projects in Chicago using renewable electricity

Launched second Elevate RAP[1] 2020 – 2023

Founding member of MECLA[3]

Decarbonising Australia’s building and construction industry

Australian Building business providing Carbon Neutral

construction three consecutive years

Published Modern Slavery Founding signatory to SteelZero Statement initiative Covering all operations globally

A+ rankings[5] #1 ranked Strategy and Office fund in GRESB[4] Governance Awarded by PRI

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Seven
Funds
ranked in the
GRESB [4] top
20
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Reconciliation Action Plan.
Milan Innovation District.
Materials and Embodied Carbon Leaders Alliance.
2020 Global Real Estate Sustainability Benchmark.
Awarded to Lendlease Funds Management.

Lendlease FY21 Financial Results

Progress on strategic priorities

Executing on our strategy

Increased focus via strategic divestments

Services business[1]
Bingara Communities project
Engineering business
25% of Retirement Living business
US Telecommunications business
US Energy business

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$3.5b [2]
Smithfield,
Birmingham [3]
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$1.2b [2]
Melbourne
Quarter
Tower [3]
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Foundations for accelerating development

$8.4b[2] new projects secured including:

Smithfield, Birmingham – $3.5b [2]
1 Java Street, New York – $1.0b [2]
La Cienega Boulevard, Los Angeles – $0.8b [2]
60 Guest Street, Boston – $0.8b [2]
Certis Cisco Centre, Singapore – $0.5b [2]
Tokyo data centre – $0.8b [2]

Scale investments

$5.1b[2] in new partnerships to drive FUM growth:

Melbourne Quarter Tower with NPS – $1.2b [2]
Milan Innovation District with CPP – $1.3b [2]
1 Java and La Cienega with Aware Super – $1.8b [2]
60 Guest Street with Ivanhoe Cambridge – $0.8b [2]

Exposure to rapidly growing sub sectors:

Life sciences
Data centres

Best practice construction delivery

Global launch of project management tool OLi[4]
─Drive consistency and leverage knowledge
─More than 230[5] projects being managed
Social infrastructure expertise:
─c.$2.0b[6] healthcare and c.$3.5b[6] defence projects
All Australian Building projects operating 100% renewable energy

1. Sale agreement signed post balance date. 2. Total estimated project revenue of all development work secured (representing 100% of project value). 3. Artist’s impression (image subject to change and further design development and planning approval). 4. One Lendlease Interactive. 5. Includes origination opportunities, projects in bid, conversion and delivery. 6. Construction backlog revenue.

Lendlease FY21 Financial Results

Financial Performance

Milan: Milano Santa Giulia Artist’s impression

Frank Krile Acting Group Chief Financial Officer

Lendlease FY21 Financial Results 12

Financial performance[1]

$m	FY20	FY21	Change
Core
Development	322	469	46%	•	Partnerships to deliver residential towers at OSH; forward sale of MQT; Joint V communities settlements; $60m provision at Elephant Park on two residential fo
Construction	101	173	71%	•	EBITDA margin 2.7%, up from 1.3% in prior year; revenue lower
Investments	300	276	(8%)	•	Substantial performance fee in prior period; lower retail asset management fee redevelopment management fees
Segment EBITDA	723	918	27%
Corporate costs	(158)	(161)	(2%)	•	Group services costs of $128m, down 0.8%; Treasury costs of $33m
Operating EBITDA	565	757	34%
Depreciation and amortisation	(160)	(148)	8%
Net finance costs	(153)	(137)	10%	•	Lower net debt
Operating Profit Before Tax	252	472	87%
Income tax expense	(46)	(95)	(107%)	•	Effective tax rate of 20.1%
Operating Profit After Tax	206	377	83%
Core Operating EPS cents	34.2	54.8	60%	•	Higher number of weighted average securities following capital raising in FY20
Non core
Profit After Tax	(406)	(181)	na	•	Includes loss of $168m after tax for claims relating to historical projects
Group
Statutory Profit After Tax	(310)	222	na

Partnerships to deliver residential towers at OSH; forward sale of MQT; Joint Venture at MIND; apartment and communities settlements; $60m provision at Elephant Park on two residential for rent towers
Substantial performance fee in prior period; lower retail asset management fees; US residential portfolio redevelopment management fees

1. Comparative period the year ended 30 June 2020, unless otherwise stated.

Lendlease FY21 Financial Results

Cash flow

FY21 Cash flow movements

Underlying operating cash outflow ($469m):

Non core segment cash outflow (c.$200m):
−Impact from retained projects
Core business cash inflow c.$700m:
−Solid cash flow across a range of development projects
One Sydney Harbour joint ventures:
−c.$900m underlying operating outflow

Underlying investing cash inflow $948m:

One Sydney Harbour joint ventures:
−c.$900m underlying investing inflow
Investments:
−Development expenditure across a range of projects
Strategic divestments:
−US Telecommunications; 25% of Retirement Living; Engineering
$411m[1] outflow of working capital post Engineering sale

FY21 $b

Working capital cash balance transfer to buyer on completion of sale.
$451m of closing cash and cash equivalents classified as Disposal Group assets held for sale at FY20.

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Establishment of OSH JVs
0.8 (0.4)
0.7 (0.9) 0.9 (0.4) (0.2)
(0.2)
1.7
1.6 (0.2)
3
0.5²
1.1
FY20 closing Non core Core One Sydney One Sydney Investments Divestments Engineering net Interest and tax Net financing FY21 closing
cash Harbour, Harbour, working capital paid and other cash
Residences One Residences One adjustments³
and Residences and Residences
Two Two
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Includes the impact of foreign exchange movements on opening cash.

Underlying Operating Underlying Investing Cash flow Cash flow

Lendlease FY21 Financial Results 14

Cash flow

Underlying operating cash flow[1 ] last five years

Underlying operating cash flow of $2.5b over last five years:

Statutory operating cash flow of $884m:
−$1.0b has been paid in interest and tax
−$0.1b of operating cash flow representing net reduction in development inventory balance over period with increase in projects being delivered through investment partnership structures
−$0.7b cash realisation from the sell down of deconsolidated development entities and gains on sale of assets
Cash conversion of 73% over five years

Five year reconciliation of cashflow to EBITDA ($m)

Reconciliation on appendix slides 14 and 15.
Underlying operating cash flow relative to operating EBITDA.
Movement in development properties inventory, less movement in deferred land payments.
Reallocation reflects cash proceeds from sell down of development entities and realised gains on sale of assets not reflected in operating cash flow.

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Cash conversion 73% [2]
3,429
729 2,494
977 (96)
884
Operating Interest and Net Adjustment Underlying Operating EBITDA
cash flow tax paid divestment from investing operating
from cash flow⁴ cash flow
development
inventory³
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Lendlease FY21 Financial Results

Financial position

Financial strength

Capital structure

Gearing 5.0%[1] , down from 5.7% at FY20:
−Proceeds from several strategic divestments
−Development receipts more than offset additional investment into the Development pipeline
−Working capital transfer associated with Engineering sale
Invested capital $7.7b[2]
Investment grade credit ratings:

Invested capital: Development and Investments

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Development
(40 - 60%)
Investments
(40 - 60%)
45%
$8.0b²
55%
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−Moody’s: Baa3 stable outlook
−Fitch: BBB- stable

Debt metrics

Group invested capital: By region

Interest cover[3] of 6.4 times
Target range 10 – 20%.
Total invested capital at 30 June 2021 was $7.7b. Development and Investments totalled $8.0b, Construction and Non core ($0.5b) and Corporate $0.2b.
FY21 EBITDA plus interest income, divided by interest finance costs, including capitalised finance costs. EBITDA has been adjusted to exclude one off items related to the Engineering business.
Average cost of debt 3.6%, maturity 4.9 years

Funding and liquidity

Total liquidity of $4.9b provides capacity to increase development and investment activity
−$1.7b cash, $3.2b undrawn facilities
$500m and $300m Green Bond issues:
−First for the Group
−Largest green issuance by an Australian non financial corporate

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19%
39%
$7.5b²
23%
19%
Australia Asia Europe Americas
(40 - 60%) (10 - 25%) (10 - 25%) (10 - 25%)
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Lendlease FY21 Financial Results

Core operating financial returns

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• Average Return on Equity last 5 years [1] : 8.1%
Target
8-11%
Development segment ($m) Construction segment ($m) Investments segment ($m)
Average ROIC: 5 years [1] Average EBITDA margin: 5 years [1] Average ROIC: 5 years [1]
9.6% 2.4% 6.9%
Target [2] Target Target [2]
10-13% 2-3% 6-9%
1,000
13.7% 13.4% 2.6% 3.1% 2.7% 900 9.8% 15.0%
11.6% 2.2% 800 7.6% 5.7% 5.8% 5.9% 10.0%
1.3% 700
793 7.2% 600 5.0%
296
552 673 4.7%322 469 271 211 173 500400300 433 369 278 300 276 -(5.0%)
101
200
(10.0%)
100
0 (15.0%)
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
EBITDA ROIC EBITDA EBITDA Margin EBITDA ROIC
.
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1 . Year ended 30 June 2021 2. Through-cycle target based on rolling three to five year timeline.

Lendlease FY21 Financial Results

Operational Update

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London:
Elephant Park
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Tony Lombardo
Global CEO
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Lendlease FY21 Financial Results 18

Growth across target gateway cities

London

Thamesmead Waterfront
Euston Station
Silvertown Quays

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• International Quarter London
• Elephant Park
• High Road West
• Deptford Landings
Chicago • Smithfield, Birmingham
• Southbank
San Francisco • Lakeshore East
• San Francisco Bay Area Project
• 30 Van Ness
Milan
• Milano Santa Giulia
New York • Milan Innovation District
• 1 Java Street
Kuala Lumpur
• The Exchange TRX
Brisbane
Development Construction Investments • Brisbane Showgrounds
$114 billion $15 billion $40 billion $29 billion
development pipeline Backlog revenue Funds Under Management Assets Under Management Perth
• Waterbank Sydney
49 [1] 126 [2] 34 32 101x>50,000 Melbourne • Barangaroo South
projects Projects Funds and mandates CommercialBuildings xx101ResidentialUnits •• Melbourne QuarterVictoria Harbour •• SydneyVictoria PlaceCross
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Map illustrates 17 targeted gateway cities and highlights major urbanisation projects with an estimated development end value greater than $1 billion. 1. Total of 49 development projects, comprising a total of 32 urbanisation projects and 17 communities projects. 2. Represents projects in delivery >$10 million.

Lendlease FY21 Financial Results 19

Development

Operational performance[1]

EBITDA $469m, up from $322m

Development pipeline $114b

$14.5b work in progress, c.$100b remaining
Urbanisation pipeline of $100.4b:
−Secured six new urbanisation projects:
- New York; Boston; Birmingham; Singapore; Los Angeles; and greater Tokyo
Communities pipeline of $13.2b:
−16 projects in Australia and one in the US
−Acquisition of Averley: c.1,500 lots

Pipeline[2] ($b)

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8.4 (3.8)
(4.0)
113.0 113.6
FY20 New work Production FX and FY21
secured Other
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Production[3] ($b)

−Divestment of Bingara: c.900 lots

Targeting an increase to $8b+ production p.a.

Production update

FY21 production of $3.8b:
Comparative period the year ended 30 June 2020.
Total estimated project revenue of all development work secured (representing 100% of project value).
Project end value on product completed during the financial period (representing 100% of project value).
−Commercial: Office in Melbourne
−Apartments for rent: Chicago and London
−Apartments for sale: Melbourne; Boston; and London
−Communities: 2,433 settlements

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5.6
5.0
4.6
4.0
3.8
FY17 FY18 FY19 FY20 FY21
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Lendlease FY21 Financial Results

Development

Outlook

Work in progress future indicator of production

Commencements of $5.6b including:
−Residences Two, One Sydney Harbour
−Melbourne Quarter Tower
−100 Claremont, New York
−TRX Residences & Hotel/Office, The Exchange TRX, Kuala Lumpur
−Park & Sayer, Elephant Park, London
−Ardor Gardens, Shanghai

Work in progress[1] ($b)

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5.6 (3.8)
0.4 14.5
12.3
FY20 Commence- Production FX and FY21
ments Other
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Composition of work in progress:
−Apartments for sale $5.9b

Indicative commencements[2] H2 FY21 – FY23

−Apartments for rent $1.3b
End value of Development Pipeline in delivery as at period end (representing 100% of project value).
−Commercial $6.9b
−Communities $0.4b

Expect to reach $8b+ production target p.a. by FY24

Indicative commencements to FY23[2 ] c.$8b per annum:
−Conversions weighted to FY23 due to COVID-19 impacts
- Delay to some previously earmarked FY22 conversions
- Newly secured projects expected to convert by FY23
−Proportion of projects in delivery expected to rise
−Recovery in Communities business

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$20b
$3.6b H2 FY21
commencements 33%
29%
17%
11%
10%
Apartments for sale Apartments for rent
Commercial Communities
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Subject to planning approvals and market conditions.

H2 FY21

FY22 – FY23

Lendlease FY21 Financial Results

Construction

Operational performance and outlook[1]

EBITDA $173m, up from $101m
EBITDA margin 2.7%, up from 1.3%:
−Good performance across the portfolio
−Disciplined cost management
Revenue of $6.4b, down 16%:
−Ongoing COVID-19 related impacts:
- Productivity impacts across sites

Backlog revenue ($b)

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External Internal
8.8 (7.2)
(0.6) 14.9
13.9
10.6 11.3
FY20 New work Run-off FX & Other FY21
secured
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Delays in commencement of new projects

FY21[2] backlog by sector and client

Comparative period the year ended 30 June 2020.
Includes all Construction projects with backlog greater than $100m, which represents 85% ($12.7b) of secured backlog.
New work secured $8.8b, up from $7.5b:
−Public sector activity significant contributor:
- Australia: Defence and social infrastructure
- Europe: Social infrastructure
−Private sector activity down:
- Americas: Well below historical averages
External Backlog revenue of $11.3b:
−Strong brand with external clients in key target sectors and markets

Commercial Lendlease Corporate Defence Government Residential Social Infrastructure

Other

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7%
24%
18% 32%
45%
18%
31%
25%
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Lendlease FY21 Financial Results

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Investments
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Management earnings

Operational performance[1]

Management EBITDA of $165m, down from $198m
Funds management revenue[2] $145m, down from $212m:
Base fees lower in Australia
c.$9m in performance fee vs c.$66m in prior period
Asset management revenue[3] $139m, up from $105m:

Management EBITDA ($m)

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198
165
144
133
116
FY17 FY18 FY19 FY20 FY21
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Stable underlying residential fees
US Military housing redevelopment fees c.$40m
Comparative period the year ended 30 June 2020. 2. Fees generated from the management of $40b of FUM.
Fees generated from the management of $29b of AUM.
Continued pressure on retail asset management fees

Outlook

Funds under management (FUM) of $39.6b:
Opportunity to double FUM as urbanisation pipeline is delivered:
- $50b of investment grade product in c.$100b urbanisation pipeline
External opportunities: work in progress on new fund launches
Assets under management (AUM) of $28.5b:
Residential $13.7b: potential growth from apartments for rent
Retail $11.8b: COVID risk to occupancy and income
Office $3.0b: opportunities to grow portfolio

Investments platform ($b)

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FUM AUM
Office Retail Resi Industrial Other
4% [3%]
11%
6%
48%
$40b 55% $29b
32%
41%
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Lendlease FY21 Financial Results

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Investments
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Ownership earnings

Performance[1]

EBITDA of $111m, up from $102m:
Recovery from worst of COVID-19 impacts
Higher asset sale profits in prior year
Operating conditions by sector:
Retirement Living returns recovering
Office market utilisation affected by lockdowns
Challenging retail operating conditions
Residential: solid detached housing, subdued CBD apartments
Investment portfolio $3.5b, down from $4.0b:
Divestment of US Telecommunications business
Sold 25% of Retirement Living business, c.$450m
Disciplined approached on new investment opportunities restricted the redeployment of capital

Outlook

Enter FY22 with smaller investment portfolio
Expect underlying investment returns to improve
Target to grow investment portfolio:
Co investment positions in urbanisation product
External market opportunities

Ownership EBITDA ($m)

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317
236
134
102 111
FY17 FY18 FY19 FY20 FY21
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Investments by sector ($b)

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Retail
Retirement 3% 1%
Office
Residential
Industrial
Other 19% 26%
$3.5b
25%
26%
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Comparative period the year ended 30 June 2020.

Lendlease FY21 Financial Results 24

Non core

Segment performance

EBITDA loss of $139m includes:
−Additional Engineering provision of $175m ($168m after tax) relating to claims on historical projects
−$10m of exit costs[1] accounted for as part of the Engineering sale
−Operating performance of:
- Services business, including $15m pre tax of costs relating to the wind down of the Energy and Technology unit
- Engineering business prior to completion of sale
- Retained engineering projects post sale of Engineering business

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Summary P&L ($m) FY21
EBITDA (139)
Interest 1
D&A (59)
Net Tax Benefit 16
Loss after Tax (181)
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Sale of Engineering business complete

Completed sale to Acciona on 9 September 2020:
−Total contractual proceeds of $197m, $150m received to date:
- Final payment outstanding
−Working capital cash balance of $411m transferred to buyer

Sale of Services business[2]

Agreement to sell Services business to Service Stream for $310m subject to final completion adjustments:
- −Transaction subject to conditions including client and third party consents
Exit related costs included implementation and selling costs, indemnities included in the sale agreement and potential costs to cover concluding projects retained by the Group.
−Full amount of sale proceeds due to be received on completion of the sale, expected prior to the end of CY21
Agreement post balance date.

Lendlease FY21 Financial Results

Business review and Outlook

Sydney: Sydney Place on Gadigal Country Artist’s impression

Tony Lombardo Global CEO

Lendlease FY21 Financial Results 26

Business review

Business Review Strategic priorities	Business Review Strategic priorities
•	Strategy and strategic priorities confirmed
Organisational structure
•	New organisation and management structure to extract the most out of the strategy
•	Substantial cost savings from organisational restructure and simplification post divestments
•	Target savings of >$160m (pre tax) annualised
−Restructuring charge estimate of $130m to $170m (pre tax) expected in H1 FY22 statutory profit −Benefits of cost reduction expected to be realised from H2 FY22 Development
•	Portfolio review:
•	−Underlying strength of portfolio reaffirmed, underpinned by a capital efficient business model −COVID to impact timing and profitability of projects over the next two years −Refinement of investment partner approach to drive improved alignment between development profit with risk/reward and cash flows from FY22 −Impairment of $230m to $290m (pre tax) expected in H1 FY22 statutory profit, c.5-7% of Development segment capital: `o` Small number of projects where a material change in development strategy is under consideration `o` Strategic options being considered to expedite the release of capital for redeployment Outlook for performance of Development segment: −$8b+ production target reaffirmed: anticipated to be achieved by FY24 −ROIC target anticipated to be achieved by FY24

Lendlease FY21 Financial Results 27

Outlook

FY22 Outlook

Reset year for the Group:
−Organisational restructure
−Development segment impacted by COVID
−Core operating profit expected to be predominantly earned in H2 FY22
Statutory profit to be impacted by the expected restructuring charge and development impairment arising from business review

Anticipated Core operating returns[1]

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Target FY22
Development ROIC 10-13% 2-5%
Construction EBITDA Margin 2-3% 2-3%
Investments ROIC 6-9% 5-8%
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Strategy for long term growth

Positioned to improve returns as operating conditions recover:
- −Competitive edge from integrated model, track record and placemaking −$114b development pipeline
- −Delivery expertise in Construction
Excludes impact of expected restructuring charge and development impairment arising from business review.
−Opportunity for significant growth in Investments platform
ROE target range of 8-11% anticipated to be met by FY24

Lendlease FY21 Financial Results

Questions

2021 Full Year Results Appendix

16 August 2021

Sydney: Darling Square on Gadigal Country and Wangal Country

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Overview

Lendlease FY21 Financial Results

Lendlease FY21 Financial Results 4

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Lendlease FY21 Financial Results 5
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Lendlease FY21 Financial Results 6

Lendlease FY21 Financial Results 7

Lendlease FY21 Financial Results

Lendlease FY21 Financial Results 9

Lendlease FY21 Financial Results 10

Group Financials

Lendlease FY21 Financial Results 12

Income Statement (Statutory Result)

$m FY20	FY21
Revenue from contracts with customers 11,671 Other revenue 163 Cost of sales (11,361)	9,771
	121
	(9,132)
Gross profit 473 Share of profit of equity accounted investments (13) Other income 352 Other expenses (1,195)	760
	100
	488
	(916)
Results from operating activities from continuing operations (383)	432
Finance revenue 12 Finance costs (165)	9
	(146)
Net finance costs (153)	(137)
Profit/(loss) before tax from continuing operations (536) Income tax (expense)/benefit from continuing operations 194	295
	(75)
Profit/(loss) after tax from continuing operations (342) Profit/(loss) after tax from discontinued operations 32	220
	2
Profit/(loss) after tax (310)	222
Profit/(loss) after tax attributable to: Members of Lendlease Corporation Limited (342) Unitholders of Lendlease Trust 32
	128
	94
Profit/(loss) after tax attributable to securityholders (310) External non controlling interests -	222
	-
Profit/(loss) after tax (310)	222
Earnings per Stapled Security from continuing operations cents (56.7) Earnings per Stapled Security cents (51.4)	32.0
	32.3

Lendlease FY21 Financial Results 13

Reconciliation of Core Operating Profit[1]

	$m FY202 FY21
	Core Operating Profit After Tax 206 377

	Add / (less): Investment properties revaluations3 (19) (1) Add / (less): Financial assets revaluations3 (10) 46 Add / (less): Equity accounted investments revaluations3 (72) (19) Add / (less): Impairment losses relating to intangibles (9) -

	Total Non Operating Items (post tax) (110) 26 Non Core Profit After Tax (406) (181)
	Profit after tax attributable to securityholders (310) 222

Statutory profit adjusted for non operating items. These include non-cash backed property related revaluation movements of Investment Property, Other Financial Assets and Equity accounted Investments in the Investments segment, and other non-cash adjustments or non-recurring items such as impairment losses relating to Goodwill and other Intangibles.
The tax impact of adjustments has been estimated by applying weighted average tax rates.
Assets in the Investments segment only.

Lendlease FY21 Financial Results 14

Underlying operating cash flow[1,2]

Balances include cash flows relating to both continuing and discontinued operations.
FY17 – FY20 historical EBITDA and underlying operating cash flow has been restated to align with the change to operating profit reporting. Underlying cash flow has been adjusted to exclude Investments segment property revaluations crystallised upon sale of assets.
Cash conversion is nonmeaningful for FY21.
Refer to Financial and Operational Metrics data file for full reconciliation.
Movement in development properties inventory, less movement in deferred land payments.
Reallocation reflects cash proceeds from sell down of development entities and realised gains on sale of assets not reflected in operating cash flow.

Cash conversion (5 years) ($m)

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

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Total conversion against EBITDA of 73%
provide a more accurate cash comparator against
Group EBITDA Cash 109% 97% 21% 961% n/m [3]
• This represents 73% of Group EBITDA over the 5 year Conversion
period 1,140
945
Group
Operating 618
EBITDA 1,238
913
656 673
Underlying
139
operating 70 (469)
cash flow
FY17 FY18 FY19 FY20 FY21
Reconciliation [4] (5 years) ($m)
• Lendlease has delivered underlying operating cash
flow of $2.5b from FY17 to FY21
5 year cash conversion 73%
• $1b has been paid in interest and tax
• Following capital partner transactions at One Sydney 3,429
Harbour Towers One and Two in FY21, there has been a
729 2,494
net $0.1b reduction in development inventories across the
five year period [5] 977 (96)
• $0.7b has been generated from the sell down of
deconsolidated development entities and realised net gain 884
on sales of assets (classified as statutory investing cash
flow) [6]
Operating Interest and Net Adjustment Underlying Operating
cash flow tax paid divestment from investing operating EBITDA
from cash flow⁶ cash flow
development
inventory⁵
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Lendlease FY21 Financial Results 15

FY21 underlying operating cash flow[1]

In FY21 Lendlease delivered underlying operating cash flow of $(469)m

underlying	In FY21 Lendlease delivered underlying operating cash flow of $(469)m
operating cash flow1 1. Balances include cash flows relating to both continuing and discontinued operations.	$m Statutory Adjustments Underlying
	Cash Flows from Operating Activities Cash receipts in the course of operations 9,531 - 9,531 Cash payments in the course of operations (8,916) (1,021)1 (9,937) Dividends/distributions received 80 - 80 Deconsolidation of development entities - (227)2 (227) Realised gains on sale of assets - 843 84 Interest received 6 (6) - Interest paid in relation to other corporations (128) 128 - Interest in relation to lease liabilities (20) 20 - Income tax paid in respect of operations (85) 85 -
	Net cash provided by operating activities 468 (937) (469)
	Cash Flows from Investing Activities Sale/redemption of investments 573 (84)3 489 Acquisition of investments (301) - (301) Acquisition of/capital expenditure on investment properties (110) - (110) Net loan drawdowns from associates and joint ventures (13) - (13) Disposal of consolidated entities (net of cash disposed and transaction costs) (266) 2272 (39) Disposal of property, plant and equipment 22 - 22 Acquisition of property, plant and equipment (53) - (53) Acquisition of intangible assets (68) - (68) Net increase in development inventory - 1,0211 1,021
	Net cash used in investing activities (216) 1,164 948

Overview

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:
Payment of interest and tax
Reinvestment in the Group’s pipeline

Summary of adjustments

1. Net decrease 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/disposed from sell down of development entities

Net cash disposed from deconsolidation of 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 realised gains/losses on sale of assets included in EBITDA. Accordingly, gains on disposal are reclassified as an operating activity. This does not include the crystallisation on sale of historical property revaluations in the Investments segment which are excluded from Operating EBITDA

Lendlease FY21 Financial Results 16

Portfolio Management Framework

Targets represent PMF refresh following strategy update in August 2020 and reflects change to operating earnings focus where relevant.
FY21 has been calculated on Core Operating Earnings.
Distribution payout ratio is nonmeaningful in FY20 due to the Group statutory loss.
Return on Invested Capital (ROIC) is calculated using the Profit after Tax divided by the arithmetic average of beginning, half and year end invested capital.
Through-cycle target based on rolling three to five year timeline.

	Target1	FY20	FY21
Total Group Metrics
Core Operating ROE	8-11%	3.1%	5.4%
Distribution payout ratio2	40-60%	n/a3	49%
Gearing	10-20%	5.7%	5.0%
Core Business EBITDA Mix
Development	40-50%	45%	51%
Construction	10-20%	14%	19%
Investments	35-45%	41%	30%
Core Business Segment Returns
Development ROIC4	10-13%5	4.7%	7.2%
Construction EBITDA margin	2-3%	1.3%	2.7%
Investments ROIC4	6-9%5	5.8%	5.9%
Segment Invested Capital Mix
Development	40-60%	56%	55%
Investments	40-60%	44%	45%
Regional Invested Capital Mix
Australia	40-60%	42%	39%
Asia	10-25%	17%	19%
Europe	10-25%	22%	23%
Americas	10-25%	19%	19%

Lendlease FY21 Financial Results

Segment financial metrics

Operating Profit after Tax ($m)

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FY20 FY21
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342
233
214 213
100
42
Development Investments Construction
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ROIC[1] (Development and Investments), EBITDA margin (Construction)

Operating EBITDA ($m)

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FY20 FY21
469
322
300
276
173
101
Development Investments Construction
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Invested capital
(Development and Investments) ($b)
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FY20 FY21
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FY20 FY21
9.6%
5 year average
6.9%
5 year average
2.4%
7.2% 5.8% 5.9% 5 year average
4.7%
2.7%
1.3%
Development ROIC Investments ROIC Construction EBITDA
margin
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4.8
4.4
3.7 3.6
Development Investments
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Return on Invested Capital (ROIC) is calculated using the Profit after Tax divided by the arithmetic average of beginning, half and year end invested capital.

Lendlease FY21 Financial Results

Exchange rates

Income Statement

Statement of Financial Position

Income Statement	Statement of Financial Position
Local Foreign FY201 FY212 AUD USD 0.67 0.75 AUD GBP 0.53 0.55 AUD EUR 0.61 0.63 AUD SGD 0.93 1.00	Local Foreign FY203 FY214
	AUD USD 0.69 0.75
	AUD GBP 0.56 0.54
	AUD EUR 0.61 0.63
	AUD SGD 0.96 1.01

Average foreign exchange rate for the full year 2020.
Average foreign exchange rate for the full year 2021.
Spot foreign exchange rate at 30 June 2020.
Spot foreign exchange rate at 30 June 2021.

Lendlease FY21 Financial Results 19

FY21 Regional EBITDA to PAT reconciliation

Statutory earnings adjusted for non operating items. These include non-cash backed revaluation movements of Investment Property, Other Financial Assets and Equity accounted Investments in the Investments segment, and other non-cash adjustments or non-recurring items such as impairment losses relating to Goodwill and other Intangibles.
Depreciation and amortisation.

$m Australia Development Construction Investments	Operating EBITDA1 Net interest D&A2 PBT Tax 396 (1) (3) 392 (114) 112 - (9) 103 (31) 135 - (5) 130 (33)	Operating PAT1
		278
		72
		97
Total Australia	643 (1) (17) 625 (178)	447
Asia Development Construction Investments	(20) - (1) (21) 2 20 - (5) 15 (5) 54 - (1) 53 2
		(19)
		10
		55
Total Asia	54 - (7) 47 (1)	46
Europe Development Construction Investments	70 2 (7) 65 4 2 (1) (8) (7) 9 (12) - - (12) 6
		69
		2
		(6)
Total Europe	60 1 (15) 46 19	65
Americas Development Construction Investments	23 1 (3) 21 (7) 39 (3) (13) 23 (7) 99 (1) (3) 95 (28)
		14
		16
		67
Total Americas	161 (3) (19) 139 (42)	97
Corporate Group Services GroupTreasury	(128) (14) (90) (232) 63 (33) (120) - (153) 44
		(169)
		(109)
Total Corporate	(161) (134) (90) (385) 107	(278)
Total Core Business	757 (137) (148) 472 (95)	377
Non Core	(139) 1 (59) (197) 16	(181)
Total Group	618 (136) (207) 275 (79)	196

Lendlease FY21 Financial Results 20

Debt metrics

		FY20	FY21
Net debt1	$m	833	695
Borrowings to total equity plus borrowings	%	25.7	25.3
Net debt to total tangible assets, less cash1	%	5.7	5.0
Interest cover2	times	2.8	6.4
Average cost of debt	%	3.4	3.6
Average debt maturity	years	4.2	4.9
Average debt mix fixed: floating	ratio	56:44	87:13
Undrawn facilities	$m	4,226	3,268

FY20 includes cash and cash equivalents which have been classified as Disposal Group assets held for sale.
EBITDA plus interest income, divided by interest finance costs, including capitalised finance costs. EBITDA has been adjusted to exclude one off items related to the Engineering business.

Lendlease FY21 Financial Results

Debt facilities and maturity profile

Debt facilities[1] ($m)

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Drawn Facility
1,800
741
555 555 531 531 478 478
- - 300 - - 235 113 180 296 296 79 79 298 298
UK Bond Syndicated Syndicated Club Asia Loan CNY bank US$ Reg. S S$ Reg. S Green Bond A$ medium Green Bond
Issue cash loan facility Revolving Facility facility notes notes A$500 term notes A$300
advance Credit million million
facility Facility
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Debt maturity profile[2] ($m)

Values are shown at amortised cost. 2. Values are shown at gross facility value.

Syndicated cash advance facility Club Revolving Credit Facility CNY bank facility S$ Reg. S notes A$ medium term notes Undrawn

UK Bond Issue Syndicated loan facility Asia Loan Facility US$ Reg. S notes Green Bond A$500 million Green Bond A$300 million

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300
741
900
900
556 533 500 80
235 180 297 300
FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
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Lendlease FY21 Financial Results 22

Key dates for investors

	Date
FY21 results released to market / final distribution declared	16 August 2021
Securitiesquoted ex distribution on the Australian Securities Exchange	20 August 2021
Final distribution record date	23 August 2021
Market Briefing	30 August 2021
Final distributionpayable	15 September 2021
Annual General Meetings	12 November 2021

Development Segment

Earnings drivers Development

Lendlease HY21 Financial Results 24 ROIC target 10-13% Invested capital $4.4b Pipeline[1] $113.6b

Urbanisation

Communities

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$100.4b [1] $13.2b [1]
Including 23 [2] major projects in 10 gateway cities 17 [2] projects
Apartments Apartments
Commercial Communities
for Sale for Rent
$41.6b $25.0b $33.8b $13.2b
pipeline pipeline pipeline pipeline [1]
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Production target of $8b+ p.a.

Total estimated project revenue of all development work secured (representing 100% of project value). 2. Total of 49 development projects, comprising a total of 32 urbanisation projects and 17 communities projects.

Lendlease FY21 Financial Results 25

Development FY21

Overview

The Development segment is predominantly focused on the creation of mixed use precincts that comprise apartments, workplaces and associated leisure and entertainment amenity. The Group also develops outer suburban masterplanned communities and retirement living villages

Performance		FY20	FY21
Core business EBITDA mix	%	45	51
ROIC	%	4.7	7.2
Invested capital	$b	4.8	4.4
Production	$b	5.0	3.8

Financial returns are generated via development margin, development management fees and origination fees
Comparative period the year ended 30 June 2020.
International Quarter London.
Total estimated project revenue of all development work secured (representing 100% of project value).
End value of Development Pipeline in delivery as at period end (representing 100% of project value).

Drivers[1]

Despite the challenging operating environment, several pipeline opportunities were converted:
Investment partnerships:
One Sydney Harbour, Towers 1 and 2 ($325m to EBITDA)
o Milan Innovation District, Phase 1 ($51m to EBITDA)
Forward funding Melbourne Quarter Tower ($55m to EBITDA)
COVID-19 reduced economics of conversions and delayed others: London lockdowns – writeback of profit on apartments for rent at Elephant Park and delay in progression of IQL[2]
Apartments for sale settlement delays on completed product
Apartments for sale launches: next stages at Southbank in Chicago and Elephant Park in London
New commencements: TRX Residences Tower B, Kuala Lumpur: 453 apartments
One Sydney Harbour Tower 2, Sydney: 322 apartments
Park and Sayer, London: 301 apartments
100 Claremont, New York: 166 apartments
Development management fees across projects in delivery
Completion of Two Melbourne Quarter: c.51,000sqm office tower
Australian Communities: Settlements: 2,228 lots, up 17%

Outlook

$8.4b[3 ] additions to pipeline including new urbanisation projects secured:
- Smithfield, Birmingham – $3.5b[3]
- 1 Java Street, New York – $1.0b[3]
- La Cienega Boulevard, Los Angeles – $0.8b[3]
- 60 Guest Street, Boston – $0.8b[3]
- Tokyo data centre – $0.8b[3]
- Certis Cisco Centre, Singapore – $0.5b[3]
$113.6b[3] development pipeline: Urbanisation: 32 projects, 23 major projects in 10 gateway cities Communities: 17 projects with c.44,000 lots
Work in Progress[4] : $14.5b $5.9b apartments for sale $1.3b apartments for rent
- $6.9b commercial $0.4b communities
FY22 profitability to be impacted by: COVID delays and related project economics
- Communities settlements to remain below 3,000–4,000 target
Sales: 1,940 lots, up 44%

Lendlease FY21 Financial Results 26

Development earnings / pipeline

Total estimated project revenue of all development work secured (representing 100% of project value).
FY17 includes Australian Retirement pipeline. FY18 onwards excludes Australian Retirement pipeline which is now included in the Investments segment following the Retirement Living transaction.
FY18, FY19 and FY20 include $0.1b, $0.2b and $0.3b of Infrastructure pipeline respectively.
Project end value on product completed during a financial period (representing 100% of project value).

EBITDA ($m)

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469
322
FY20 FY21
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FY21 pipeline[1] by product

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Apartment for sale Apartment for rent
Commercial Communities
12%
36%
30% $113.6b
22%
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Pipeline[1] ($b)

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113.0³ 113.6
76.1³
71.1³
49.3²
FY17 FY18 FY19 FY20 FY21
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Production[4] ($b)

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5.6
5.0
4.6
4.0
3.8
FY17 FY18 FY19 FY20 FY21
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Lendlease FY21 Financial Results

Pipeline[1] provides long term earnings visibility:

$14.5b Work in Progress and $99.1b remaining

Total estimated project revenue of all development work secured (representing 100% of project value).

Apartments for Sale ($b)

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In Delivery Remaining
14% $5.9b WIP
$41.6b
86%
Commercial ($b)
In Delivery Remaining
$6.9b WIP
20%
$33.8b
80%
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Apartments for Rent ($b)

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In Delivery Remaining
5% $1.3b WIP
$25.0b
95%
Communities ($b)
In Delivery Remaining
3%
$0.4b WIP
$13.2b
97%
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Lendlease FY21 Financial Results

Work in Progress[1] by product

Apartments for Sale – WIP ($b)

Apartments for Rent – WIP ($b)

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0.4 (1.3)
2.2
2.9 (0.7)
(0.2) 5.9
- 1.3
3.9
FY20 WIP Commence Production FX and FY21 WIP FY20 WIP Commence Production FX and FY21 WIP
-ments Other -ments Other
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Commercial – WIP ($b)

Communities – WIP ($b)

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1.6 (1.1)
0.7 6.9
5.7
0.7 (0.7)
0.5 (0.1) 0.4
FY20 WIP Commence Production FX and FY21 WIP FY20 WIP Commence Production FX and FY21 WIP
-ments Other -ments Other
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End value of Development Pipeline in delivery as at period end (representing 100% of project value).

Lendlease FY21 Financial Results 29

FY21 apartment settlements

Urbanisation development

	Ownership	Units	$m
Australia
Melbourne Quarter - East Tower	50%	240	169
Total Australia		240	169
Europe
Elephant Park - Park Central West	100%	91	56
Elephant Park - Park Central East	100%	75	45
Elephant Park - West Grove 2	100%	24	39
Deptford Landings - Cedarwood Square	100%	38	38
Other		12	21
Total Europe		240	199
Total Americas		141	268
Total apartment for sale settlements		621	636

Apartments for rent completions

City	Project	Building	Ownership	Units	End value1 ($b)
London	Elephant Park	Park Central West	20%	354	0.5
London	Elephant Park	Park Central East	20%	309	0.4
Chicago	845 West Madison	845 West Madison	38%	586	0.4
Total apartments for rent completions				1,249	1.3

Commercial completions

Total estimated project revenue of all development work secured (representing 100% of project value).
Reflects effective ownership interest at 30 June 2021.
Build, Own, Operate, Transfer.

City	Project	Building	Capital model	Sector	Ownership2	sqm ‘000	End value1 ($b)
Melbourne	Melbourne Quarter	Two Melbourne Quarter	Fund through	Office	-	51	0.6
Melbourne	Melbourne Connect	Melbourne Connect	BOOT3	Office	10%	40	0.3
Shah Alam	Setia City Mall II	Setia City Mall	Joint Venture	Retail	20%	41	0.2
London	InternationalQuarter London	Pavilion	JointVenture	Retail	50%	1	-
Total commercial completions						133	1.1

Lendlease FY21 Financial Results 30

Communities

Communities settlements

Communities settlements
	FY20		FY21
	Lots	$m	Lots	$m
Queensland	549	123	873	187
New South Wales	255	122	265	100
Victoria	940	252	857	233
South Australia	96	15	40	4
Western Australia	58	14	193	43
Total Australia	1,898	526	2,228	567
Europe	-	-	11	59
Americas	-	-	204	13
Total	1,898	526	2,433	639
Communities sales
	FY20		FY21
	Lots	$m	Lots	$m
Queensland	532	124	704	175
New South Wales	341	131	234	93
Victoria	283	77	831	237
South Australia	60	8	22	3
Western Australia	131	30	149	34
Total Australia	1,347	370	1,940	542
Europe	-	-	11	59
Americas	-	-	204	13
Total	1,347	370	2,145	614
Totalpresales	1,725	469	1,435	441

Chiswick – Englobo sale.

Lendlease FY21 Financial Results 31

Apartment settlements and completion profile:

$7.2b Work in Progress

City Project Building Total units Ownership Presold Units presold1 Presales1 ($b) Delivery Date2	City Project Building Total units Ownership Presold Units presold1 Presales1 ($b) Delivery Date2
Residential for sale apartments Manchester Potato Wharf Potato Wharf Block 3 & 4 191 100% 80% 152 0.1 FY22
Chicago Lakeshore East Cirrus 350 43% -3 -3 -3 FY22
London Elephant Park MP4 - H11A 104 100% 100% 104 0.1 FY23
New York 100 Claremont 100 Claremont 166 32% -3 -3 -3 FY23
Sydney Barangaroo South Residences One and Residences Two 637 75% 70% 447 2.5 FY24
Kuala Lumpur The Exchange TRX RESIDENSI TRX I - Towers A & B 896 60% 35% 314 0.2 FY24
London Elephant Park Park and Sayer 301 100% 44% 131 0.1 FY24
Chicago Southbank The Reed	216 50% -3 -3 -3 FY24

			Total		Delivery
City	Project	Building	units	Ownership	date2
Residential	for rent apartments
Shanghai	Ardor Gardens	Ardor Gardens	878	100%	FY22
Chicago	Lakeshore East	Cascade	503	43%	FY22
London	Elephant Park	MP4 - H11A	118	50%	FY23
London	Elephant Park	Park and Sayer	123	50%	FY24
Chicago	Southbank	The Reed	224	50%	FY24

Closing presales balance as at 30 June 2021.
Based on expected completion date of underlying buildings, subject to change in delivery program. Not indicative of cash or profit recognition.
Project information is commercial in confidence.

Lendlease FY21 Financial Results

Commercial completion profile

$6.9b Work in Progress

City	Project	Capital model	Ownership	sqm '0001	Building	Completion date2
Milan	Milano Santa Giulia	Fund Through3	50%	28	Spark One	FY22
Milan	Milano Santa Giulia	Fund Through3	50%	18	Spark Two	FY22
Milan	Milan Innovation District	BOOT4	100%	8	MIND Village	FY22
Sydney	Sydney Place	Joint Venture	20%	58	Salesforce Tower	FY23
Kuala Lumpur	The Exchange TRX	Joint Venture	60%	122	Retail	FY23
Melbourne	Melbourne Quarter	Fund Through3	0%	75	Melbourne Quarter Tower	FY24
Kuala Lumpur	The Exchange TRX	Joint Venture	60%	18	Office	FY24
Kuala Lumpur	The Exchange TRX	Joint Venture	60%	29	Hotel	FY24
Sydney	Victoria Cross over station development	Joint Venture	75%	58	Victoria Cross over station development	FY25
Total				414

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

Lendlease FY21 Financial Results

Conversion of secured pipeline

Indicative conversion timing[1] of secured residential for sale pipeline to FY26

City London2 Sydney3 Perth4	Units 3,217 212 108	FY22	FY23	FY24	FY25	FY26
York5	608
Chicago6	344
Melbourne7	2,204
Kuala Lumpur8	1,630
Milan9	776
Brisbane10	504
San Francisco11	333
Birmingham12	580
Total	10,516

Indicative conversion timing[1] of secured residential for rent pipeline to FY26

Subject to planning approvals, contractual conditions and market.
Silvertown Quays, Deptford Landings, International Quarter London, Elephant Park, High Road West.
Barangaroo South.
Waterbank.
Hungate.
Lakeshore East.
Victoria Harbour and Melbourne Quarter.
The Exchange TRX.
Milano Santa Giulia.
Brisbane Showgrounds.
30 Van Ness.
Smithfield.

City	Project	Units
Milan	Milan Innovation District - Stage 1	358
London	Deptford	639
Milan	Milano Santa Giulia - Stage 1	388
Los Angeles	La Cienega	260
London	High Road West - Stage 1	433
Chicago	Southbank	340
New York	1 Java	848
Milan	Milano Santa Giulia - Stage 2	512
Milan	Milan Innovation District - Stage 2	354
Birmingham	Smithfield	361
San Francisco BayArea	San Francisco BayArea Project	c2,900
Total		7,393

Lendlease FY21 Financial Results 34

Conversion of secured pipeline

Indicative conversion timing[1] of secured commercial pipeline to FY26

City Milan	Project Milan Innovation District - Stage 1	Sectors Office / Retail / Hotel	sqm '0002 99
Perth Brisbane	Waterbank Brisbane Showgrounds - Stage 1	Office Office	11 15
Greater Tokyo	Lendlease Data Centre Partners	Other	48
Boston	60 Guest	Office	32
Singapore	Certis Cisco Centre	Office	30
Milan	Milano Santa Giulia - Stage 1	Office / Retail / Hotel	79
London	Elephant Park	Office	44
Kuala Lumpur	The Exchange TRX	Hotel	13
Los Angeles	La Cienega	Office	23
Chicago	Southbank	Office	112
Brisbane	Brisbane Showgrounds - Stage 2	Office	32
London	International Quarter London - Stage 1	Office	34
London	Silvertown	Office	47
Milan	Milan Innovation District - Stage 2	Office	74
San Francisco	30 Van Ness	Office	25
London	International Quarter London - Stage 2	Office	29
Birmingham	Smithfield	Office / Retail	22
Milan	Milano Santa Giulia - Stage 2	Office	11
Total			780

Subject to planning approvals, contractual conditions, market, and tenant precommitments.
Floor space measured as Net Lettable Area.

Lendlease FY21 Financial Results 35

Major urbanisation project summary

Includes forecast commencement dates, subject to change in delivery program.
Based on expected completion date of underlying buildings, subject to change in delivery program.
Floor space measured as Net Lettable Area.
Total estimated project revenue of all development work secured (representing 100% of project value).
Victoria Cross over station development.
During the period, the Group disposed of its 50 per cent stake in International Quarter London – North and purchased the remaining 50 per cent stake in International Quarter London – South.
Commercial in confidence.

Region	Project Project secured Delivery commenced1 Completion date2 Residential backlog units Commercial backlog sqm ‘0003 Estimated end value ($b)4 Land payment model
Australia	Barangaroo South FY09 FY12 FY26 849 1 4.2 Stagedpayment
	SydneyPlace FY12 FY17 FY23 - 58 2.2 Upfrontpayment
	Victoria Harbour FY01 FY04 FY29 2,041 - 2.0 Land management
	Brisbane Showgrounds FY09 FY11 FY33 2,206 61 2.0 Land management
	Melbourne Quarter FY13 FY16 FY26 769 75 1.7 Land management
	Waterbank, Perth FY13 FY22 FY29 1,308 12 1.4 Land management
	Victoria Cross, Sydney5 FY19 FY20 FY25 - 58 1.2 Stagedpayment
Asia	The Exchange TRX, Kuala Lumpur FY14 FY17 FY28 2,526 187 3.9 Stagedpayment
Europe	Thamesmead Waterfront, London FY20 FY27 FY40+ 11,500 82 14.5 Land management
	Euston Station, London FY18 FY26 FY40+ 2,000 400 10.5 Land management
	Silvertown Quays, London FY18 FY23 FY35 3,000 440 6.4 Land management
	Milano Santa Giulia FY18 FY20 FY34 3,251 166 4.3 Land management
	Milan Innovation District FY19 FY21 FY32 1,125 348 3.6 Stagedpayment
	Smithfield, Birmingham FY21 FY25 FY35 3,079 126 3.5 Land management
	International Quarter London6 FY10 FY14 FY32 350 147 3.1 Stagedpayment
	High Road West, London FY18 FY23 FY31 2,501 14 2.0 Land management
	Elephant Park, London FY10 FY12 FY26 905 47 2.0 Stagedpayment
	Deptford Landings, London FY14 FY16 FY29 1,489 9 1.3 Upfrontpayment
Americas	San Francisco BayAreaproject FY20 FY23 FY38 15,000 n/a7 19.5 Land management
	Lakeshore East, Chicago FY19 FY20 FY26 1,197 2 2.0 Stagedpayment
	Southbank, Chicago FY15 FY16 FY26 780 113 1.7 Upfrontpayment
	30 Van Ness, San Francisco FY17 FY24 FY26 333 25 1.5 Upfrontpayment
	1 Java, New York FY21 FY24 FY26 848 2 1.0 Upfrontpayment
Other urbanisationprojects 2,103 152 4.9
Total urbanisation 59,160 2,525 100.4

Lendlease FY21 Financial Results

Communities

Key metrics

$13.2b pipeline[1]
16 projects across five Australian states, 1 US project
c.44,000 lot pipeline
Target settlements: 3,000 – 4,000 lots p.a.

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Queensland
c.27,800 land lots
• Elliot Springs
• Springfield Lakes
• Yarrabilba
• Shoreline
Northern
Territory
WesternAustralia
New SouthWales
c.1,450 land lots
c.6,470 land lots
• Alkimos Beach
• Alkimos Vista South Australia • Calderwood Valley
• Figtree Hill
• Jordan Springs
• The New Rouse Hill
• Kings Central
Victoria
Tasmania
c.7,500 land lots
• Atherstone
• Aurora
• Harpley
• Averley
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Total estimated project revenue of all development work secured (representing 100% of project value).

Lendlease FY21 Financial Results

Capital efficient business model

Land price and timing agreed upfront at either a fixed value or percentage of end value. Transfer of land plots may occur upfront, or, be staged to match payment schedule. Draw down of land plots at Developer discretion within longstop dates.

$2.3b of invested capital in land and infrastructure controls $113.6b development pipeline

FY21 development pipeline – land paymentstructure

FY21 development invested capital

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Land and
Infrastructure
Production
36%
48%
$4.4b 52%
64%
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Land management Staged payment¹
Upfront payment²
10%
90%
capital efficient
23%
$114b
71% 67%
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Land management model

Master plan flexibility

Pricing at drawdown or completion of individual plots

Land management model facilitates staged drawdown of land

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Pause development in uneconomic or weak market conditions

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Revenue share based on projected revenue

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Staged infrastructure contributions to manage capital at risk

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Ability to remix master plan in partnership with land owner

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Downside protection: Residual land value flexes Share in upside value creation

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Milestones and sunsets structured to provide flexibility

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Ability to enhance master plan yield in partnership with land owner over time

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Land owner shares value capture of ‘placemaking’

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Land acquired and fully transferred to the Developer upfront.

Lendlease FY21 Financial Results 38

Investment partner funding model - example

Example assumes Lendlease retains 25% stake during Developmentphase

Case study: International Towers Sydney, Barangaroo South (Towers 2 & 3)

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Planning Development Investment
FUM
Performancefees
Dev.
profit on
Potential retained
Dev. profit Project stake
capital Investment
partner
capital
Enterdelivery
Lendlease co-investment
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Key features

Introduce investment partner prior to entering delivery: Profit upfront on sell-down under single asset and programmatic models Typically no or limited profit upfront under partnership model approach where Lendlease and partner originate the deal together Under all models, potential for Lendleaseto earn development management fee and FUM fees during delivery

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Typically small Lendlease co-investment post-completion with ongoing management rights and FUM fees

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Structure adopted on:

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International Towers Sydney, Barangaroo (commercial): Single asset model International Quarter London (commercial): Single asset model Milano Santa Giulia: Programmatic model Paya Lebar Quarter: Partnership model

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Secured in 2009toregenerate large mixed use precinct

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Concept plan approved 2010

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Tenant pre-commitment of c.70% across two towers

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c.$2b Lendlease International Towers Sydney Trust (LLITST) created to forward fund the towers in 2012:

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Investment partners 75%

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Lendlease 25% co-investment

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Profit streams through the lifecycle of project:

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Upfront sell-down profit

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Development management fees Performance fees

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FUM fees

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Investment partners received attractive returns: Value from additional leasing Above market rents through placemaking Cap rate compression on completion of towers 2021 – 11 years after securing theproject: All development profit converted to cash Co-investment 3.9% (c.$170m) FUM of $4.9b

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Construction
Segment
Melbourne: Melbourne Connect on Wurundjeri Country
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Earnings drivers Construction

Lendlease HY21 Financial Results 40 EBITDA margin target 2-3% Backlog $14.9b

Australia

Asia

Europe

Americas

Revenue Revenue in the last in the last 12 months 12 months $2.9b $0.3b

Revenue Revenue in the last in the last 12 months 12 months $0.9b $2.4b

$8.6b backlog realisation

$0.7b backlog realisation

$1.7b backlog realisation

$3.9b backlog realisation

FY22	FY23		Post FY23	FY22	FY23		Post FY23	FY22	FY23		Post FY23	FY22	FY23		Post FY23
45%	32%		23%	53%	31%		16%	61%	32%		7%	40%	30%		30%
External Backlog		Internal Backlog		External Backlog		Internal Backlog		External Backlog		Internal Backlog		External Backlog		Internal Backlog
$6.3b			$2.3b	$0.1b			$0.6b	$1.3b			$0.4b	$3.6b			$0.3b

Lendlease FY21 Financial Results 41

Construction FY21

From external clients, unless otherwise stated.
Comparative period the year ended 30 June 2020.
Includes all Construction projects with backlog greater than $100m, which represents 85% ($12.7b) of secured backlog.

Overview

The Construction segment provides project management, design and construction services, predominantly in the commercial, residential, mixed use, defence and social infrastructure sectors
Financial returns are generated via project management and construction management fees, in addition to construction margin[1]

Drivers[2]

Revenue of $6.4b, EBITDA of $173m:
Revenue down 16% on COVID related impacts
Lockdowns and social distancing measures impacting productivity
Projects on hold
Delays in securing/commencing new projects
EBITDA margin 2.7%, up from 1.3%:
Portfolio performed well, despite a weaker outcome in Europe
Margins boosted by disciplined cost management in response to COVID
New work secured of $8.8b, up from $7.5b:
Public sector activity in Australia and Europe the main source of new work secured
Australia: $4.3b, steady - includes Defence projects, Tweed Valley Hospital, Caboolture Hospital and Geelong Arts Centre
Americas: $2.5b, stable – remains well below historical averages reflecting subdued activity in key markets along with delays in projects being brought to market
Europe: $1.5b, up from $0.5b, predominantly for Government clients across social infrastructure

Performance		FY20	FY21
Core business EBITDA mix	%	14	19
EBITDA margin	%	1.3	2.7
New work secured	$b	7.5	8.8
Backlog	$b	13.9	14.9

Outlook[2]

Backlog revenue of $14.9b, up from $13.9b:
Diversified by sector, client and target market/geography
Major project[3] sector exposures: Commercial 32%, Defence 25%, Residential 18%, Social Infrastructure 18%
Major project[3] client breakdown: Government 45%; Corporate 31%; Internal 24%
Australia $8.6b: RAAF Tindal Stage 6 and USFPI Airfield Works, Tweed Valley Hospital, Sydney Metro Martin Place Integrated Station Development, Residences One and Two – One Sydney Harbour
Americas $3.9b: Privatised Army Lodging, 4 Hudson Square
Backlog realisation:
FY22: 46%
FY23: 32%
Post FY23: 22%
Composition of backlog:
$11.3b external: margin generated for Construction segment
$3.6b internal: integrated projects contributing to Development ROIC

Lendlease FY21 Financial Results

Construction

EBITDA ($m) & EBITDA margin (%)

Backlog ($b)[1]

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External Internal
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FY17 – FY19 internal and external backlog presentation derived based on Construction projects with backlog greater than $100m.
Includes all Construction projects with backlog greater than $100m, which represents 85% ($12.7b) of secured backlog.

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2.7%
1.3%
173
101
FY20 FY21
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FY21 backlog by client

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Lendlease Corporate Government
24%
45% Major Project [2]
Backlog
31%
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15.7 15.2 15.6 14.9
13.9
FY17 FY18 FY19 FY20 FY21
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FY21 backlog by sector

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Commercial
Defence
Residential
7%
Social
18% 32%
Other
Major Project [2]
Backlog
18%
25%
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Lendlease FY21 Financial Results 43

Construction backlog by region

Internal revenue not included in the Construction segment financial performance.
Ratio calculated as external new work secured over external revenue realised to the nearest million.
Run-off includes revenue on internal integrated projects.

External

Internal

Group ($b)[1]

Australia ($b)

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8.8 (7.2) 4.3 (3.2)
8.6
(0.6) 14.9 7.5
13.9
2.3
3.6 1.8
3.3
10.6 Book to bill²: 1.1 11.3 5.7 Book to bill²: 1.1 6.3
FY20 New work Run-off³ FX & Other FY21 FY20 New work Run-off³ FY21
secured secured
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Europe ($b)

Americas ($b)

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1.5 (1.0)
(0.1) 1.7
1.3 0.4
0.3
1.3
1.0 Book to bill²: 1.4
FY20 New work Run-off³ FX & Other FY21
secured
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2.5 (2.6)
4.4 (0.4)
3.9
0.6
0.3
3.8 Book to bill²: 0.9 3.6
FY20 New work Run-off³ FX & Other FY21
secured
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Lendlease FY21 Financial Results 44

Construction Major new projects secured[1,2]

Disclosure of major projects is subject to client approval. This could impact the projects available for disclosure.
New major projects secured comprise 73% of total new work secured.
Contract types are Managing Contractor (MC), Design and Construct (D&C), Guaranteed Maximum Price (GMP), Cost Plus (CP), Construction Manager (CM).
Based on expected completion date of underlying buildings, subject to change in delivery program.
Development led projects.

		Contract	Completion
Project	Location	type3	date4	Sector
Australia
NCIS-3 HMAS Stirling and Henderson	WA	MC	FY25	Defence
AIR 7000 Phase 1B AIR 555	SA	MC	FY24	Defence
Land 121 Phase 5B	National	MC	FY24	Defence
Residences Two, One Sydney Harbour5	NSW	D&C	FY24	Residential
Melbourne Quarter Tower5	VIC	D&C	FY24	Commercial
Tweed Valley Hospital	NSW	D&C	FY23	Social Infrastructure
555 Collins Street	VIC	D&C	FY23	Commercial
Caboolture Hospital	QLD	MC	FY24	Social Infrastructure
New Performing Arts Venue	QLD	MC	FY23	Social Infrastructure
Asia
The Exchange TRX – Hotel/Office5	Kuala Lumpur	CM	FY24	Hotel/Entertainment
Europe
HMP Glen Parva	Leicester	D&C	FY23	Social Infrastructure
Manchester Town Hall	Manchester	MC	FY24	Social Infrastructure
Camden Town Hall	London	D&C	FY23	Social Infrastructure
2 Ruskin Square	London	D&C	FY23	Commercial
Elephant Park - Park & Sayer5	London	MC	FY24	Residential
Americas
4 Hudson Square	New York	GMP	FY24	Commercial
Merck WP B50	Boston	CM	FY25	Commercial
45 Rivington Street	New York	GMP	FY23	Social Infrastructure
100 Claremont5	New York	CP	FY23	Residential

Investments Segment

Lendlease HY21 Financial Results 46 ROIC target 6-9%[1] Invested capital $3.6b

Earnings drivers Investments

Ownership Earnings

Co-investment positions in Retirement managed funds Living $2.1b $0.9b

Returns and metrics

Distribution and capital growth

Equity investment returns

High quality assets Occupancy rate, driving rental income, turnover rate, growth occupancy and asset rate, discount rate valuations and opex

Other $0.5b

Returns and metrics

Equity investment returns

High quality assets driving rental income, occupancy and asset valuations

Management Earnings

Commercial Residential asset asset management management $14.8b $13.7b AUM AUM

Funds management $39.6b FUM

Returns and metrics

Funds management fees

Property and development

Property and development Property and development management fees management fees

Revenue margin, growth in FUM/AUM, asset performance and operating leverage

Operating profit based measure, excluding property revaluations.

Lendlease FY21 Financial Results 47

Investments FY21

Operating profit based measure, excluding property revaluations.
Comparative period the year ended 30 June 2020. 3. Paya Lebar Quarter.
Total estimated project revenue of all development work secured (representing 100% of project value).
Secured future FUM from funds or mandates with development projects currently in delivery.

Overview

The Investments segment comprises a leading investment and asset management platform and the Group’s investments across the residential, office, retail, industrial and retirement sectors
Financial returns include fund and asset management fees, and yields and capital growth on ownership interests

Drivers[2]

Management EBITDA $165m, down from $198m:
Funds management revenue of $145m, down from $212m: o Lower performance fees with large PLQ[3] fee in prior year o Lower Australian base fees
FUM growth of 10%
First data centre development under the Lendlease Data Centre Partners secured
Asset management revenue of $139m, up from $105m:
Lower retail asset management fees
Residential the largest sector exposure
Includes fees on redevelopment activity secured across the US military housing portfolio
AUM $0.6b of additions offset by FX translation impacts
Ownership EBITDA $111m, up from $102m:
Improved underlying Retirement Living returns
Recovery from worst of the COVID-19 impacts in H2 FY20
Income supressed by a weak operating environment
Higher asset sale profits in prior year
Divestment of US telco and 25% of Retirement Living businesses aligned to strategy

Performance1		FY20	FY21
Core operating business EBITDA mix	%	41	30
ROIC	%	5.8	5.9
Invested capital	$b	3.7	3.6
Management EBITDA	$m	198	165
OwnershipEBITDA	$m	102	111

Outlook

Integrated business model key source of growth with >$50b investment grade assets to be created from development pipeline:
- $5.1b of new partnerships created in FY21:
- Melbourne Quarter Tower with NPS – $1.2b[4]
- o Milan Innovation District with CPP – $1.3b[4]
- 1 Java and La Cienega with Aware – $1.8b[4]
- o 60 Guest with Ivanhoe Cambridge $0.8b[4]
─ Progressing other product development initiatives
Management earnings:
- FUM of $39.6b, c.150 institutional investors:
- Scale platforms in office and retail
- Building scale in residential for rent asset class
- c.$2.7b of additional secured future FUM[5]
- Significant opportunities from remaining development pipeline AUM of $28.5b:
- Residential $13.7b: ongoing growth from pipeline
- Retail $11.8b: occupancy and income expected to recover
- Office $3.0b: opportunities to grow portfolio
Ownership earnings:
- Investment portfolio, targeting growth from current $3.5b: o Co investment positions in urbanisation product o External market opportunities

Lendlease FY21 Financial Results

Investments earnings / ownership

Returns excluding non-cash backed property related revaluation movements of Investment Property, Other Financial Assets, and Equity Accounted Investments in the Investments segment.
Earnings primarily derived from FUM and AUM.
The Group’s assessment of market value of ownership interests. Total invested capital in the segment of $3.6b in FY21.

Investments Operating EBITDA[1]

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300
276
FY20 FY21
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Investments[3] by sector ($b)

Retail Retirement Office Residential Industrial Other

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4.0 1% 3.5
8%
3%
3%
19%
11%
21%
25%
34% 26%
23% 26%
FY20 FY21
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Investments Operating EBITDA by activity ($m)

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FY20 FY21
198
165
111
102
Ownership¹ Management²
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FUM/AUM ($b)

FY20 FY21

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39.6
36.0
29.3 28.5
FUM AUM
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Lendlease FY21 Financial Results

Funds Under Management[1] (FUM)

FUM ($b)

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CAGR² of 11.0%
39.6
35.2 36.0
30.1
26.1
FY17 FY18 FY19 FY20 FY21
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FY21 FUM by sector

FY21 FUM by region

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Office Retail Residential Industrial Other
4% [3%]
6%
$39.6b 55%
32%
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Australia Asia Europe Americas
4%
5%
21%
$39.6b
70%
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The Group’s assessment of market value. 2. Compound Annual Growth Rate.

Lendlease FY21 Financial Results

Assets Under Management[1] (AUM)

AUM[2] ($b)

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28.7 29.3 28.5
12.2 12.7
FY17 FY18 FY19 FY20 FY21
FY21 AUM by sector FY21 AUM by region
Residential Retail Office Australia Asia Europe Americas
11%
22%
45%
$28.5b 48% $28.5b
41%
27%
6%
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The Group’s assessment of market value.
US residential housing not included in FY17 – FY18.

Lendlease FY21 Financial Results 51

FUM[1] by region

Group ($b)

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4.8 (0.4) 0.2 (1.0)
39.6
36.0
FY20 Additions Divest- Revaluations FX and FY21
ments Other
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By region ($b)

By region ($b)
	FY20	Addition	Divestment	Revaluation	FX and Other	FY21
Australia	24.7	3.5	(0.3)	0.4	(0.7)	27.6
Asia	8.7	0.2	(0.1)	-	(0.4)	8.4
Europe	1.6	0.4	-	(0.2)	0.1	1.9
Americas	1.0	0.7	-	-	-	1.7
Group	36.0	4.8	(0.4)	0.2	(1.0)	39.6

The Group's assessment of market value.

Lendlease FY21 Financial Results 52

Major fund summary[1]

FY21 funds management platform

FY21 funds management platform
									Weighted
	Total assets	Gearing	Co-investment		Region	Sector	# of assets	Occupancy	avg. cap rate
	$b	%	%	$m			#	%	%
Australian Prime Property Fund Commercial	6.0	17.2	8.1	386	Aus	Office	20	96.9	4.6
Lendlease International Towers Sydney Trust	4.9	12.3	3.9	165	Aus	Office	4	94.9	4.5
Australian Prime Property Fund Retail	4.0	23.5	1.9	56	Aus	Retail	9	96.5	5.3
Paya Lebar Quarter	3.1	58.8	30.0	358	Asia	Office and Retail	4	96.8	3.9
Lendlease One International Towers Sydney Trust	2.8	17.3	2.5	57	Aus	Office	1	99.6	4.5
ARIF 3 (Jem)	1.6	42.1	15.1	123	Asia	Office and Retail	1	99.6	4.3
Lendlease Americas Residential Partnership2	1.5	41.0	50.0	161	Amer	Residential	3	91.3	4.9
Lendlease Global Commercial REIT	1.4	31.9	25.9	249	Asia	Office and Retail	4	99.0	4.6
Australian Prime Property Fund Industrial	1.4	16.9	10.4	120	Aus	Industrial	36	96.4	5.0
Parkway Parade Partnership Limited	1.3	38.2	10.2	65	Asia	Retail	1	98.8	5.0

1. Does not comprise Lendlease’s complete Funds Management Platform. 2 . Total assets includes nine buildings (six buildings are under construction and not yet operational). All other metrics refer to the three operational buildings only.

Lendlease FY21 Financial Results 53

AUM[1] by product

Group ($b)

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29.3 0.6 (0.2) (0.6) (0.6) 28.5
FY20 Additions Divest- Revaluations FX and FY21
ments Other
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By product ($b)

	FY20	Addition	Divestment	Revaluation	FX and Other	FY21
Commercial	15.1	0.6	(0.2)	(0.4)	(0.3)	14.8
Residential	14.2	-	-	(0.2)	(0.3)	13.7
Group	29.3	0.6	(0.2)	(0.6)	(0.6)	28.5

The Group's assessment of market value.

Lendlease FY21 Financial Results 54

Retirement Living

Value drivers1		FY20	FY21
Ownership2	%	75	50
Equity investment	$b	1.4	0.9
Long term growth rate	%	3.5	3.5
Discount rate	%	12.4	12.4
Average length of stay – ILUs	years	11	11
Number of established units	no.	12,858	13,001
Units resold	no.	874	904
Development
Pipeline3	no.	3,077	2,354
Pipeline	$b	1.6	1.4
Settlements	no.	104	160
Settlements	$m	56.8	110.4

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Queensland
13 villages
c2,950 units
Northern
Territory
WesternAustralia
New SouthWales
10 villages
18 villages
c1,640 units
c3,450 units
South Australia
Australian
Capital
4 villages
c530 units Territory
Victoria 3 villages
c330 units
Tasmania
27 villages
c4,100 units
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100% of Retirement Living business.
Aware Super acquired a 25% interest in Retirement Living business in the second half of FY21.
Includes aged care beds licences.

Lendlease FY21 Financial Results 55

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 FY21 refers to the full year period ended 30 June 2021 unless otherwise stated. All figures are in AUD unless otherwise stated.

AI assistant

LENDLEASE GROUP — Annual Report 2021

65243_rns_2021-08-15_d076ddb2-ffe6-4f4d-a9e4-b1f167539bdf.pdf

Lendlease Group 2021 Full Year Results Announcement, Presentation and Appendix

ENDS

Profit recovery despite COVID impacts, strategic agenda progressed

FY21 Result[1]

Strategic Priorities

Business Review

Outlook

ENDS

Authorised for lodgement by the Lendlease Group Disclosure Committee

Acknowledgement of Country

Our strategy

Financial performance

Operating performance

COVID

Impacts and response to pandemic

Significant ramifications for real estate markets globally

Development

Construction

Investments

Key performance indicators

Fatalities

Reducing incidents through continuous improvement, advocacy for industry change

FY21 key achievements

Environmental, Social and

Progress on strategic priorities

Executing on our strategy

Foundations for accelerating development

$8.4b[2] new projects secured including:

Scale investments

$5.1b[2] in new partnerships to drive FUM growth:

Exposure to rapidly growing sub sectors:

Best practice construction delivery

Financial performance[1]

Cash flow

FY21 Cash flow movements

Underlying operating cash outflow ($469m):

Underlying investing cash inflow $948m:

FY21 $b

Cash flow

Underlying operating cash flow[1 ] last five years

Underlying operating cash flow of $2.5b over last five years:

Five year reconciliation of cashflow to EBITDA ($m)

Financial position

Financial strength

Capital structure

Invested capital: Development and Investments

Debt metrics

Group invested capital: By region

Funding and liquidity

Core operating financial returns

Growth across target gateway cities

London

Development

Operational performance[1]

Development pipeline $114b

Pipeline[2] ($b)

Production[3] ($b)

Targeting an increase to $8b+ production p.a.

Production update

Development

Outlook

Work in progress future indicator of production

Work in progress[1] ($b)

Indicative commencements[2] H2 FY21 – FY23

Expect to reach $8b+ production target p.a. by FY24

Construction

Operational performance and outlook[1]

Backlog revenue ($b)

FY21[2] backlog by sector and client

Management earnings

Operational performance[1]

Management EBITDA ($m)

Outlook

Investments platform ($b)

Ownership earnings

Performance[1]

Outlook

LENDLEASE GROUP Annual Report 2021