LENDLEASE GROUP — Annual Report 2021

Aug 15, 2021

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16 August 2021
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Lendlease Trust 2021 Full Year Financial Report

Attached is the Lendlease Trust Financial Report for the year ended 30 June 2021.

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

Lendlease Trust Consolidated Financial Report

June 2021

ARSN 128 052 595

Table of Contents

Table of Contents
Directors’ Report	1
Lead Auditor’s Independence Declaration under Section 307C
of theCorporations Act 2001	4
Financial Statements
Statement of Comprehensive Income	5
Statement of Financial Position	5
Statement of Changes in Equity	6
Statement of Cash Flows	6
Notes to the Consolidated Financial Statements	7

Notes Index

Section A: Performance

Lendlease Responsible Entity Limited ABN 72 122 883 185 AFSL No. 308983 is the responsible entity of the Lendlease Trust ARSN 128 052 595. Lendlease Trust (LLT) is domiciled in Australia. The consolidated financial report of LLT for the year ended 30 June 2021 comprises LLT including its controlled entities (together referred to as the Consolidated Entity). The Consolidated Entity is a for profit entity. Further information about the Consolidated Entity’s primary activities is included in the Directors’ Report.

Shares in Lendlease Corporation (the Company) and units in LLT are traded as one security under the name of Lendlease Group on the Australian Securities Exchange (ASX).

The consolidated financial report was authorised for issue by the Directors on 16 August 2021.

1.	Distributions	8
2.	Earnings Per Unit	8
3.	Other Income	8
4.	Finance Revenue	9
5.	Other Expenses	9
6.	Events Subsequent to Balance Date	9
Section B: Investment
7.	Other Financial Assets	10
8.	Equity Accounted Investments	11
Section C: Liquidity and Working Capital
9.	Cash and Cash Equivalents	13
10.	Notes to Statement of Cash Flows	13
11.	Borrowings and Financing Arrangements	14
12.	Issued Capital	14
13.	Liquidity Risk Exposure	15
14.	Commitments	15
15.	Loans and Receivables	15
16.	Trade and Other Payables	16
Section D: Risk Management
17.	Financial Risk Management	16
18.	Fair Value Measurement	17
19.	Contingent Liabilities	17
Section E: Other Notes
20.	Related Party Information	18
21.	Consolidated Entities	18
22.	Impact of New and Revised Accounting Standards	18
23.	Other Signifcant Accounting Policies	18
Directors’ Declaration		19

01

Directors’ Report

The Directors of Lendlease Responsible Entity Limited (ABN 72 122 883 185), the Responsible Entity of Lendlease Trust (the Trust), present their Report together with the Annual Consolidated Financial Report of the Trust, for the year ended 30 June 2021 and the Auditor’s Report thereon. The Responsible Entity is a wholly owned subsidiary of Lendlease Corporation Limited (the Company) and forms part of the consolidated Lendlease Group (the Group). The registered office and principal place of business of the Responsible Entity is Level 14, Tower Three, International Towers Sydney, Exchange Place, 300 Barangaroo Avenue, Barangaroo NSW 2000.

1. Governance

a. Board/Directors

The name of each person who has been a Director of the Responsible Entity between 1 July 2020 and the date of this Report are:

M J Ullmer, AO	Director since 2011 and Chairman since 2018
P M Cofey	Director since 2017
D P Craig	Director since 2016
J S Hemstritch	Director since 2011
E M Proust, AO	Director since 2018
N M Wakefeld Evans	Director since 2013
R F Welanetz	Director since 2020
The names of Directors of the Responsible Entity who retired between 1 July 2020 and the date of this Report are:
S B McCann	Group Chief Executive Ofcer since 2008 and Managing Director since 2009 (retired 31 May 2021)
C B Carter, AM	Director since 2012 (retired 20 November 2020)
M A Ford, OBE	Director since 2020 (retired 18 August 2020)

b. Global Chief Executive Officer

A P Lombardo was appointed Global Chief Executive Officer of the Group, effective 1 June 2021.

c. Company Secretary

W Lee Appointed in 2010

The qualifications and experience of each person holding the position of Director and Company Secretary of the Responsible Entity at the date of this Report is detailed in the Lendlease Group Annual Report.

d. Interests in Capital

The interests of each of the Directors in the stapled securities of the Group at 16 August 2021 is set out below.

		Securities held			Securities held
	Securities held	benefcially/	Total	Securities held	benefcially/	Total
Current Directors	directly 2021	indirectly 2021	2021	directly 2020	indirectly 2020	2020
M J Ullmer	-	125,000	125,000	-	110,000	110,000
P M Cofey	-	21,216	21,216	-	21,216	21,216
D P Craig	-	73,061	73,061	-	63,061	63,061
J S Hemstritch	-	33,061	33,061	-	23,061	23,061
E M Proust1	-	68,061	68,061	-	53,061	53,061
N M Wakefeld Evans	-	34,379	34,379	-	34,020	34,020
R F Welanetz	7,000	-	7,000	7,000	-	7,000
Former Directors
S B McCann2	375,000	46,874	421,874	547,200	291,527	838,727
C B Carter3	-	18,601	18,601	-	18,061	18,061
M A Ford4	-	4,065	4,065	-	4,065	4,065

1. E M Proust also holds through her super fund, $500,000 face value of Lendlease Green Bonds.

2. S B McCann ceased to be the Group Chief Executive Officer and Managing Director on 31 May 2021. The balance of securities held at the end of the financial year shown here represents the balance held at that date.

3. C B Carter ceased to be a Director on 20 November 2020. The balance of securities held at the end of the financial year shown here represents the balance held at that date.

4. M A Ford ceased to be a Director on 18 August 2020. The balance of securities held at the end of the financial year shown here represents the balance held at that date.

02

Directors’ Report continued

2. Operations

a. Principal Activities

The principal activities of the Consolidated Entity include direct and indirect property investments in the Australia region and internationally.

b. Review and Results of Operations

For the year ended 30 June 2021 the Consolidated Entity reported a profit after tax of $94,279,000 (June 2020: $31,969,000).

Key transactions during the year include:

• Further investment of $8,842,000 relating to Carlton Connect Initiative.

• A final distribution of $27,949,000 (June 2020: $22,412,000) has been approved by the Directors and will be paid on 15 September 2021.

c. Distributions

For the year ended 30 June 2021 the Trust declared distributions of $54,377,000 (June 2020: $67,093,000). Distributions of $26,428,000 were paid on 17 March 2021. The remaining distributions of $27,949,000 (June 2020: $22,412,000) were provided for as at 30 June 2021 and will be paid on 15 September 2021.

d. Significant Changes in State of Affairs

There have been no significant changes in the Consolidated Entity’s state of affairs.

e. Events Subsequent to Balance Date

There were no material events subsequent to the end of the financial year.

f. Likely Developments

Details of likely developments in the operations of the Consolidated Entity in subsequent financial years are contained in the Performance and Outlook section of the Directors’ Report in the Lendlease Group Annual Report.

g. Environmental Regulation

The Consolidated Entity is subject to various state and federal environmental regulations in Australia.

The Directors are not aware of any material non compliance with environmental regulations pertaining to the operations or activities during the period covered by this Report. In addition, the Group is registered and publicly reports the annual performance of its Australian operations under the requirements of the National Greenhouse and Energy Reporting (NGER) Act 2007 and Energy Efficiency Opportunities (EEO) Act 2006 .

All Lendlease businesses continue to operate an integrated Environment, Health and Safety Management System ensuring that non compliance risks and opportunities for environmental improvement are identified, managed and reported accordingly.

03

Directors’ Report continued

3. Other

a. Security Options

No security options were issued during the year by the Trust, and there are no such options on issue.

b. Indemnification and Insurance of Directors and Officers

Rule 12 of the Trust’s Constitution provides for indemnification in favour of each of the Directors named on page 1 of this Report; the officers of the Responsible Entity or of wholly owned subsidiaries or related entities of the Responsible Entity (Officers) to the extent permitted by the Corporations Act 2001 . Rule 12 does not indemnify a Director, Company Secretary or Officer for any liability involving a lack of good faith.

Each of the Directors is also a Director of the Company and has entered into a Deed of Indemnity, Insurance and Access with the Company. That indemnity extends to indemnify each of the Directors in respect of their roles as officers of the Responsible Entity. The Responsible Entity has not entered into separate deeds of indemnity with the Directors.

No indemnity has been granted to an auditor of the Responsible Entity in their capacity as auditor of the Responsible Entity.

In accordance with the Corporations Act 2001 , Rule 12 of the Constitution also permits the Responsible Entity to purchase and maintain insurance or pay or agree to pay a premium for insurance for Officers against any liability incurred as an officer of the Company or of a related body corporate. Due to confidentiality obligations and undertakings for the policy, no further details in respect of the premium or policy can be disclosed.

c. Special Rules for Registered Schemes

Fees and other expenses of $nil were paid or are payable to a related party of the Responsible Entity out of the assets of the Trust for the financial year ended 30 June 2021 (June 2020: $112,000).

No units in the Trust were held by the Responsible Entity at the end of the financial year. Associates of the Responsible Entity held 6,965,976 units (June 2020: 5,798,869 units) as at the end of the financial year.

Details of the units issued in the Trust during the financial year are set out in the Statement of Changes in Equity.

Details of the value of the Trust assets as at the end of the financial year and the basis of the valuation are set out in the Statement of Financial Position and Basis of Preparation.

Details of the number of Units in the Trust as at the end of the financial year are set out in Note 12 ‘Issued Capital’.

d. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

The Lead Auditor’s Independence Declaration is set out on page 4 and forms part of the Directors’ Report for the year ended 30 June 2021.

e. Rounding Off

Lendlease Trust is a Trust of the kind referred to in the ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, and in accordance with the Instrument, amounts in the financial statements and directors’ report have been rounded off to the nearest thousand dollars, or, where the amount is $500 or less, zero, unless specifically stated otherwise.

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M J Ullmer, AO Chairman

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A P Lombardo Global Chief Executive Officer

Sydney, 16 August 2021

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Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To the Directors of Lendlease Responsible Entity Limited (the Responsible Entity of Lendlease Trust)

I declare that, to the best of my knowledge and belief, in relation to the audit of Lendlease Trust for the financial year ended 30 June 2021 there have been:

• i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

• ii. no contraventions of any applicable code of professional conduct in relation to the audit

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KPMG

D M McLennan

Partner

Sydney

16 August 2021

4

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

05

Consolidated Financial Statements

Statement of Comprehensive Income

Year ended 30 June 2021

Year ended 30 June 2021
		June 2021	June 2020
	Note	$’000	$’000
Other income	3	80,105	36,179
Other expenses		(1,896)	(1,774)
Results from operating activities		78,209	34,405
Finance revenue	4	12,725	7,237
Share ofproft/(loss)of equityaccounted investments	8	3,345	(9,673)
Proft before tax		94,279	31,969
Income tax expense		-	-
Proft after tax		94,279	31,969
Other comprehensive income net of tax		-	-
Items that may be reclassifed subsequently to proft
Movements in foreign currencytranslation reserve		(9,793)	(5,021)
Total items that may be reclassifed subsequently toproft		(9,793)	(5,021)
Total comprehensive income after tax		84,486	26,948
Basic/diluted earnings per unit(cents)	2	13.70	5.30

Statement of Financial Position

As at 30 June 2021

As at 30 June 2021
		June 2021	June 2020
	Note	$’000	$’000
Current Assets
Cash and cash equivalents	9	27,089	19,475
Loans and receivables	15	810,360	820,177
Total current assets		837,449	839,652
Non Current Assets
Equity accounted investments	8	232,299	250,122
Other fnancial assets	7	745,942	689,168
Total non current assets		978,241	939,290
Total assets		1,815,690	1,778,942
Current Liabilities
Trade and other payables	16	128	65
Distributionspayable	1	27,949	22,412
Total current liabilities		28,077	22,477
Total liabilities		28,077	22,477
Net assets		1,787,613	1,756,465
Equity
Issued capital	12	1,537,053	1,536,014
Buyback reserve		(67,149)	(67,149)
Foreign currency transaction reserve		(14,814)	(5,021)
Retained earnings		332,523	292,621
Total equity attributable to unitholders		1,787,613	1,756,465

The accompanying notes form part of these consolidated financial statements.

06

Consolidated Financial Statements continued

Statement of Changes in Equity

Year ended 30 June 2021

Statement of Changes in Equity Year ended 30 June 2021
			Foreign
			Currency
		Buyback	Translation	Retained
	Issued Capital	Reserve3	Reserve	Earnings	Total Equity
	$’000	$’000	$’000	$’000	$’000
Balance as at 1 July 2019	921,228	(67,149)	-	327,745	1,181,824
Total Comprehensive Income
Proft for the year	-	-	-	31,969	31,969
Other comprehensive Income (net of tax)	-	-	-	-	-
Efect of foreign exchange movement	-	-	(5,021)	-	(5,021)
Total comprehensive income	-	-	(5,021)	31,969	26,948
Transactions with Owners of the Trust
Share issue via institutional placement (net of transaction costs)1	478,470	-	-	-	478,470
Share issue via Security Purchase Plan (net of transaction costs)2	134,236	-	-	-	134,236
Distribution Reinvestment Plan (DRP)	2,080	-	-	-	2,080
Distributionspaid andprovided for	-	-	-	(67,093)	(67,093)
Total other movements	614,786	-	-	(67,093)	547,693
Balance as at 30 June 2020	1,536,014	(67,149)	(5,021)	292,621	1,756,465
Balance as at 1 July 2020	1,536,014	(67,149)	(5,021)	292,621	1,756,465
Total Comprehensive Income
Proft for the year	-	-	-	94,279	94,279
Other comprehensive Income (net of tax)	-	-	-	-
Efect of foreign exchange movement	-	-	(9,793)	-	(9,793)
Total comprehensive income	-	-	(9,793)	94,279	84,486
Transactions with Owners of the Trust	-	-	-	-	-
Distribution Reinvestment Plan (DRP)	1,039	-	-	-	1,039
Distributionspaid andprovided for		-	-	(54,377)	(54,377)
Total other movements	1,039	-	-	(54,377)	(53,338)
Balance as at 30 June 2021	1,537,053	(67,149)	(14,814)	332,523	1,787,613

1. On 4 May 2020 the Consolidated Entity issued 97 million new stapled securities via an institutional placement at an issue price of $9.80.

2. On 4 June 2020 the Consolidated Entity issued 27 million new stapled securities via a Security Purchase Plan at an issue price of $9.80.

3. Stapled securities acquired by the Trust as part of the Group’s on market buyback have been recorded in the Buyback Reserve.

Statement of Cash Flows

Year ended 30 June 2021

Statement of Cash Flows Year ended 30 June 2021
		June 2021	June 2020
	Note	$’000	$’000
Cash Flows from Operating Activities
Cash receipts in the course of operations		5,071	3,679
Cash payments in the course of operations		(1,088)	(2,763)
Interest received		11,516	6,585
Distributions received		38,758	34,648
Net cashprovided by operating activities	10	54,257	42,149
Cash Flows from Investing Activities
Proceeds from sale of fair value through proft or loss investments		-	89,095
Acquisition of investments		(8,842)	(271,008)
Net cash used in investing activities		(8,842)	(181,913)
Cash Flows from Financing Activities
Net proceeds from share issue		-	612,706
Loan made to related party		-	(811,075)
Loan repayment by related party		10,000	501,543
Distributionspaid		(47,801)	(158,224)
Net cash(used in)/provided by fnancing activities		(37,801)	144,950
Net increase in cash and cash equivalents		7,614	5,186
Cash and cash equivalents at beginningof fnancialyear		19,475	14,289
Cash and cash equivalents at end of fnancialyear	9	27,089	19,475

The accompanying notes form part of these consolidated financial statements.

07

Notes to the Consolidated Financial Statements

Basis of Preparation

The consolidated financial report is a general purpose financial report which:

• Has been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board, and the Corporations Act 2001 ;

• Complies with International Financial Reporting Standards (IFRSs) adopted by the International Accounting Standards Board;

• Is presented in Australian dollars, with all values rounded off to the nearest thousand dollars unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191; and

• Is prepared under the historical cost basis except for the following assets, which are stated at their fair value: fair value through profit or loss investments.

Significant accounting policies have been:

• Included in the relevant notes to which the policies relate, and other significant accounting policies are discussed in Note 23 ‘Other Significant Accounting Policies’; and

• Consistently applied to all financial years presented in the financial statements, except as explained in Note 22 ‘Impact of New and Revised Accounting Standards’.

The preparation of a financial report that complies with AASBs requires management to make judgements, estimates and assumptions.

• This can affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

• Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

• The significant accounting policies highlight information about accounting judgements in applying accounting policies that have the most significant effects on reported amounts and further information about estimated uncertainties that have a significant risk of resulting in material adjustments within the next financial year.

• These significant accounting estimates and judgements have been considered in the context of the COVID-19 outbreak and the impact of the current economic conditions.

The Consolidated Entity presents assets and liabilities in the Statement of Financial Position as current or non current.

• Current assets include assets held primarily for trading purposes, cash and cash equivalents, and assets expected to be realised in, or intended for sale or use in, the course of the Consolidated Entity’s operating cycle. All other assets are classified as non current.

• Current liabilities include liabilities held primarily for trading purposes, liabilities expected to be settled in the course of the Consolidated Entity’s operating cycle and those liabilities due within one year from the reporting date. All other liabilities are classified as non current liabilities.

08

Notes to the Consolidated Financial Statements continued

Section A: Performance

Profit After Tax (PAT) is the key measure used to assess the Consolidated Entity’s performance. This section of the Consolidated Financial Report focuses on disclosure that enhances a user’s understanding of PAT. The key line items of the Statement of Comprehensive Income along with their components provide detail behind the reported balances. The Consolidated Entity’s performance will also impact the earnings per unit and distribution payout, therefore disclosure on these items have been included in this section. Further information and analysis on performance can be found in the Review and Results of Operations, which forms part of the Directors’ Report.

1. Distributions

	Cents	June 2021	June 2020
	Per Unit	$’000	$’000
Lendlease Trust Interim Distribution
December 2020 – paid 17 March 2021	3.8	26,428	-
December 2019 –paid 17 March 2020	7.9	-	44,681
		26,428	44,681
Lendlease Trust Final Distribution
June 2021 – provided for (payable 15 September 2021)	4.1	27,949	-
June 2020 –provided for(paid 15 September 2020)	3.3	-	22,412
		27,949	22,412
		54,377	67,093

2. Earnings Per Unit (EPU)

Accounting Policies

The Consolidated Entity presents basic and diluted EPU in the Statement of Comprehensive Income.

Basic EPU is determined by dividing profit/(loss) after income tax attributable to the unitholders of the Trust, excluding any costs of servicing equity other than ordinary units, by the weighted average number of ordinary units outstanding during the financial year, adjusted for bonus elements in ordinary units issued during the financial year.

Diluted EPU is determined by adjusting the profit/(loss) after tax attributable to the unitholders of the Trust, and the weighted average number of ordinary units outstanding for the effects of all dilutive potential ordinary units. The Trust currently does not have any dilutive potential ordinary units.

		June 2021	June 2020
Basic/Diluted Earnings Per Unit (EPU)
Proft after tax	$’000	94,279	31,969
Weighted average number of units	000’s	688,395	602,953
Basic/Diluted EPU	cents	13.70	5.30

3. Other Income

Accounting Policies

Distribution income is recognised when the right to receive payment is established, usually on declaration of the distribution. Net gains or losses on sale of investments , including equity accounted investments and fair value through profit or loss assets are recognised when an unconditional contract is in place.

Net gains or losses on fair value remeasurements are recognised in accordance with the policies stated in Note 7 ‘Other Financial Assets’.

June 2021	June 2020
$’000	$’000
Other Income Distribution income 27,102 Net gain on remeasurement of fair value through proft or loss assets 47,932 Net gain on sale of fnancial assets at fair value - Other income – related parties 5,071	28,582 1,980 1,938 3,679
Total other income 80,105	36,179

09

Notes to the Consolidated Financial Statements continued

Section A: Performance continued

4. Finance Revenue

Accounting Policies

Finance revenue is recognised as it is earned using the effective interest method, which applies the interest rate that discounts estimated future cash receipts over the expected life of the financial instrument. The discount is then recognised as finance revenue over the remaining life of the financial instrument.

	June 2021	June 2020
	$’000	$’000
Finance Revenue
External parties	-	121
Relatedparties	12,725	7,116
Total fnance revenue	12,725	7,237

5. Other Expenses

Other expenses includes Auditor’s Remuneration as detailed below:

5. Other Expenses Other expenses includes Auditor’s Remuneration as detailed below:
	June 2021	June 2020
	$	$
Auditor’s Remuneration
Amounts received or due and receivable by the auditor of the Consolidated Entity for:
Audit and Other Assurance Services
Audit services	84,000	63,000
Other assurance services	-	-
Total audit and other assurance services	84,000	63,000
Non audit services	-	-
Total audit, other assurance and non audit services	84,000	63,000

6. Events Subsequent to Balance Date

There were no material events subsequent to the end of the financial year.

10

Notes to the Consolidated Financial Statements continued

Section B: Investment

This section includes disclosures for indirect property assets such as Other Financial Assets and Equity Accounted Investments in associates contained within the Statement of Financial Position. The measurement basis of Other Financial Assets is fair value. Refer to Note 18 ‘Fair Value Measurement’ for details on basis of determining fair value and valuation technique.

7. Other Financial Assets

Accounting Policies

Financial Assets at fair value through profit or loss on initial recognition are measured at fair value (generally transaction price) and subsequently stated at fair value. Transaction costs are recorded as expenses when they are incurred. Any gain or loss arising from a change in fair value is recognised in the Statement of Comprehensive Income.

Financial Assets at amortised cost are presented within Note 15 ‘Loans and Receivables’.

	Fair Value	June 2021	June 2020
	Level1	$’000	$’000
Non Current Measured at Fair Value
Fair Value Through Proft or Loss – Designated at Initial Recognition
Lendlease International Towers Sydney Trust	Level 3	165,022	153,022
Lendlease One International Towers Sydney Trust	Level 3	56,924	53,372
Australian Prime Property Fund – Industrial	Level 3	113,507	95,637
Australian Prime Property Fund – Commercial	Level 3	377,479	363,425
Australian Prime Property Fund – Retail	Level 3	21,005	21,534
Carlton Connect Initiative	Level 3	12,005	2,178
Total non current other fnancial assets		745,942	689,168
Total other fnancial assets		745,942	689,168

1. Refer to Note 18 ‘Fair Value Measurement’ for details on basis of determining fair value and valuation technique.

a. Fair Value Reconciliation

Reconciliation of the carrying amount for Level 3 financial instruments is set out as follows.

a. Fair Value Reconciliation Reconciliation of the carrying amount for Level 3 fnancial instruments is set out as follows.
	June 2021	June 2020
	Unlisted Equity	Unlisted Equity
	Investments	Investments
	$’000	$’000
Carrying amount at beginning of fnancial year	689,168	772,122
Additions	8,842	2,223
Disposals	-	(87,157)
Gains recognised in Statement of Comprehensive Income – other income	47,932	1,980
Carrying amount at end of fnancial year	745,942	689,168

The potential effect of using reasonably possible alternative assumptions for valuation inputs would not have a material impact on the Consolidated Entity.

11

Notes to the Consolidated Financial Statements continued

Section B: Investment continued

8. Equity Accounted Investments

Accounting Policies

Investments in associates are accounted for using the equity method. The share of profit recognised under the equity method is the Consolidated Entity’s share of the investment’s profit or loss based on ownership interest held. Associates are entities in which the Consolidated Entity, as a result of its voting rights, has significant influence, but not control or joint control, over the financial and operating policies. This applies from the date that significant influence commences until the date that significant influence ceases.

Investments in associates are carried at the lower of the equity accounted carrying amount and the recoverable amount. When the Consolidated Entity’s share of losses exceeds the carrying amount of the equity accounted investment (including assets that form part of the net investment in the associate), the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Consolidated Entity has obligations in respect of the associate.

Dividends from associates represent a return on the Consolidated Entity’s investment and, as such, are applied as a reduction to the carrying value of the investment. Unrealised gains arising from transactions with equity accounted investments are eliminated against the investment in the associate to the extent of the Consolidated Entity’s interest in the associate. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Other movements in associates’ reserves are recognised directly in the Consolidated Entity’s consolidated reserves.

a. Associates	INTEREST June 2021 % June 2020 %	SHARE OF PROFIT/ (LOSS)	NET BOOK VALUE
			June 2021 $’000 June 2020 $’000
Asia Investments Lendlease Global Commercial REIT
	24.1% 24.2%	3,345 (9,673)	232,299 250,122
Total Asia		3,345 (9,673)	232,299 250,122
Total Less: Impairment		3,345 (9,673)	232,299 250,122
		- -	- -
Total associates		3,345 (9,673)	232,299 250,122

b. Material Associates Summarised Financial Information

Material associates are determined by comparing individual investment carrying value and share of profit with the total equity accounted investment carrying value and share of profit, along with consideration of relevant qualitative factors.

Income Statement	LENDLEASE GLOBAL COMMERCIAL REIT
	June 2021 $’000 June 20201 $’000
Other income Cost of sales Other expense Unrealised fair value losses Finance costs	80,739 59,815 (21,953) (16,398) (19,559) (26,550) (31,300) (21,720) (9,979) (4,495)
Loss for the year Other comprehensive income	(2,052) (9,348) 8,981 17,011
Total comprehensive income Consolidated Entity’s ownership interest Consolidated Entity’s total share of: Loss for the year Other adjustments	6,929 7,663 24.1% 24.2% (495) (2,262) 3,840 (7,411)
Total proft/(loss) for the year Other comprehensive expense	3,345 (9,673) (9,984) (5,021)
Total comprehensive loss	(6,639) (14,694)

1. Prior period balances have been reclassed to reflect updated management information

12

Notes to the Consolidated Financial Statements continued

Section B: Investment continued

8. Equity Accounted Investments continued

b. Material Associates Summarised Financial Information continued

b. Material Associates Summarised Financial Informationcontinued
Statement of Financial Position	LENDLEASE GLOBAL COMMERCIAL REIT
	June 2021 $’000 June 2020 $’000
Current assets Cash and cash equivalents Other current assets	244,936 87,309 9,100 13,968
Total current assets	254,036 101,277
Non current assets Investment properties Other non current assets	1,409,023 1,506,431 52,366 15,611
Total non current assets	1,461,389 1,522,042
Current liabilities Other current liabilities	25,551 22,197
Total current liabilities	25,551 22,197
Non current liabilities Financial liabilities (excluding trade payables) Other non current liabilities	536,113 551,951 10,671 12,627
Total non current liabilities	546,784 564,578
Net assets	1,143,090 1,036,544
Reconciliation to Carrying Amounts Opening net assets 1 July Acquisition/contributions Distributions Total comprehensive income for the year Foreign currency translation for the year	1,036,544 - 197,218 1,076,828 (47,194) (16,408) 6,929 7,663 (50,407) (31,539)
Closing net assets	1,143,090 1,036,544
% ownership Group’s share of net assets Other adjustments	24.1% 24.2% 275,485 250,844 (43,186) (722)
Carrying amount at end of year	232,299 250,122

There were no immaterial associates for the year ended 30 June 2021.

13

Notes to the Consolidated Financial Statements continued

Section C: Liquidity and Working Capital

The ability of the Consolidated Entity to fund the continued investment in new opportunities and meet current commitments is dependent on available cash and access to third party capital. This section contains disclosure on the financial assets, financial liabilities, cash flows and equity that are required to finance the Consolidated Entity’s activities, including existing commitments and the liquidity risk exposure associated with financial liabilities. The section also contains disclosures for the Consolidated Entity’s trading assets, and the trading liabilities incurred as a result of trading activities used to generate the Consolidated Entity’s Performance.

9. Cash and Cash Equivalents

Accounting Policies

Cash and cash equivalents include cash on hand, deposits held at call with banks, bank overdrafts and other short term highly liquid investments that are readily convertible to known amounts of cash within three months and which are subject to an insignificant risk of changes in value.

Bank overdrafts (if applicable) are shown as a current liability on the Statement of Financial Position and are shown as a reduction to the cash balance in the Statement of Cash Flows.

	June 2021	June 2020
	$’000	$’000
Cash and Cash Equivalents
Cash	27,089	19,475
Total cash and cash equivalents	27,089	19,475

10. Notes to Statement of Cash Flows

10. Notes to Statement of Cash Flows
	June 2021	June 2020
	$’000	$’000
Reconciliation of Proft After Tax to Net Cash Provided by Operating Activities
Proft after tax	94,279	31,969
Net gain on remeasurement of fair value through proft or loss assets	(47,932)	(1,980)
Gain on disposal of fnancial assets	-	(1,938)
Other (income)/loss included in investing cash fow	(3,345)	9,673
Other	11,374	3,971
Net cashprovided by operating activities before changes in asset and liabilities	54,376	41,695
Changes in assets and liabilities
(Increase)/decrease in receivables	(182)	1,982
Increase/(decrease)inpayables	63	(1,528)
Net cashprovided by operating activities	54,257	42,149

14

Notes to the Consolidated Financial Statements continued

Section C: Liquidity and Working Capital continued

11. Borrowings and Financing Arrangements

Accounting Policies

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost using the effective interest rate method. Under the amortised cost method the difference between the amount initially recognised and the redemption value is recorded in the Statement of Comprehensive Income over the period of the borrowing on an effective interest basis. Borrowings are referred to in this section using their redemption value when describing the terms and conditions.

Borrowings and Finance Facilities

The Consolidated Entity has access to the following financial facilities:

	June 2021	June 2020
	$’000	$’000
Related party loan facility
Facility available	300,000	300,000
Amount of facilityused	-	-
Amount of facility unused	300,000	300,000

Consistent with prior years, the Consolidated Entity has not defaulted on any obligations of principal or interest in relation to its borrowings and finance arrangements and other financial liabilities.

12. Issued Capital

Accounting Policies

Issued Capital

Ordinary units are classified as equity. Transaction costs directly attributable to the issue of ordinary units are recognised as a deduction from equity. When issued capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributable costs, is recognised as a change in equity. Distributions are recognised as a liability in the financial year in which they are declared.

	June 2021	June 2021	June 2020	June 2020
	No of units ’000s	$’000	No of units ’000s	$’000
Issued capital at beginning of fnancial period, net of prior
period share buyback	688,268	1,536,014	564,131	921,228
Distribution reinvestment plan (DRP)	318	1,039	662	2,080
Share issue via institutional placement (net of transaction costs)	-	-	96,939	478,470
Share issue via Security Purchase Plan (net of transaction costs)	-	-	26,536	134,236
Issued capital at end of fnancial year	688,586	1,537,053	688,268	1,536,014

a. Issuance of Securities

At 30 June 2021 Lendlease Trust had 688,585,551 units on issue equivalent to the number of Lendlease Corporation shares on issue. The issued units of the Trust and shares on issue by Lendlease Corporation Limited are stapled securities.

b. Security Accumulation Plans

The Distribution Reinvestment Plan (DRP) was reactivated in February 2011. The last date for receipt of an election notice for participation in the DRP is 24 August 2021. The issue price is the arithmetic average of the daily volume weighted average price of Lendlease stapled securities traded (on the Australian Securities Exchange) for the period of five consecutive business days immediately following the record date, commencing on 24 August 2021, for determining entitlements to distribution. If that price is less than 50 cents, the issue price will be 50 cents. Stapled securities issued under the DRP rank equally with all other stapled securities on issue.

c. Terms and Conditions

A stapled security represents one share in the Company stapled to one unit in the Trust.

Stapled securityholders have the right to receive declared dividends from the Company and distributions from the Trust and are entitled to one vote per stapled security at securityholders’ meetings. Ordinary stapled securityholders rank after all creditors in repayment of capital.

15

Notes to the Consolidated Financial Statements continued

Section C: Liquidity and Working Capital continued

13. Liquidity Risk Exposure

Further information on Liquidity Risk is disclosed in Note 17 ‘Financial Risk Management’. As disclosed in Note 19 ‘Contingent Liabilities’ in certain circumstances the Trust guarantees the performance of particular Stapled Group entities in respect of their obligations including bonding and bank guarantees. Issued bank guarantees have cash collateralisation requirements if the bank guarantee facility is not renewed by the provider. At 30 June 2021, the Consolidated Entity does not anticipate a significant liquidity risk in relation to these facilities in the next 12 months.

The following are the contractual cash flow maturities of financial liabilities including estimated interest payments.

		Carrying	Contractual	Less than	One to Two	Two to Five	More than
		Amount	Cash Flows	One Year	Years	Years	Five Years
	Note	$’000	$’000	$’000	$’000	$’000	$’000
June 2021
Non Derivative Financial Liabilities
Trade and other payables	16	128	128	128	-	-	-
Borrowings and fnancing arrangements	11	-	-	-	-	-	-
Distributionspayable	1	27,949	27,949	27,949	-	-	-
Total		28,077	28,077	28,077	-	-	-
June 2020
Non Derivative Financial Liabilities
Trade and other payables	16	65	65	65	-	-	-
Borrowings and fnancing arrangements	11	-	-	-	-	-	-
Distributionspayable	1	22,412	22,412	22,412	-	-	-
Total		22,477	22,477	22,477	-	-	-

Other contractually committed cash flows the Consolidated Entity is exposed to are detailed in Note 14 ‘Commitments’.

14. Commitments

14. Commitments
	June 2021	June 2020
	$’000	$’000
At balance date, capital commitments existing in respect of interests in equity accounted investments and other investments contracted but not provided for in the fnancial statements are as follows:
Due within one year	350	8,842
Due between one and fveyears	-	-
Total	350	8,842

15. Loans and Receivables

Accounting Policies

Loans and receivables are non derivative financial assets with fixed or determinable payments that are not equity securities. Loans and receivables are carried at amortised cost using the effective interest method, which applies the interest rate that discounts estimated future cash receipts over the term of the loans and receivables. Cash flows relating to short term trade and other receivables are not discounted if the effect of discounting is immaterial. The discount, if material, is then recognised as revenue over the remaining term.

The Consolidated Entity assesses provision for impairment of loans and receivables based on expected loss, if material. The Consolidated Entity considers reasonable and supportable information that is relevant and available. This includes both quantitative and qualitative information and analysis, based on the Consolidated Entity’s historical impairment experience, credit assessment of customers and any relevant forward-looking information. The amount of the provision is recognised in the Statement of Comprehensive Income.

	June 2021	June 2020
	$’000	$’000
Current
Other receivables – external parties	7,278	8,305
Loan to relatedparty	803,082	811,872
Total loans and receivables	810,360	820,177

The interest bearing loan facility is due within 12 months. The credit quality of all loans and receivables, including those neither past due nor impaired, is assessed and monitored on an ongoing basis. To determine the impairment provision for the financial year, the Consolidated Entity considers how economic and market conditions will affect the creditworthiness of certain entities. There were $nil past due or impaired receivables for 30 June 2021 (June 2020: $nil past due and $nil impaired).

16

Notes to the Consolidated Financial Statements continued

Section C: Liquidity and Working Capital continued

16. Trade and Other Payables

Accounting Policies

Trade Creditors

Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed to the Consolidated Entity. Trade and other payables are settled in the normal course of business. Trade and other payables are carried at amortised cost using the effective interest method, which applies the interest rate that discounts estimated future cash outflows over the term of the trade and other payables. Cash flows relating to short term trade and other payables are not discounted if the effect of discounting is immaterial. The discount, if material, is then recognised as an expense over the remaining term.

	June 2021	June 2020
	$’000	$’000
Current
Otherpayables	128	65
Total trade and otherpayables	128	65

Section D: Risk Management

The Consolidated Entity’s activities expose it to a variety of financial risks. The Consolidated Entity’s overall risk management strategy focuses on the unpredictability of financial markets and seeks to minimise adverse effects on the Consolidated Entity’s performance. Treasury policies have been approved by the Board for managing this risk. This section contains disclosures of financial risks the Consolidated Entity is exposed to and how the Consolidated Entity manages these risks. The impact of contingent liabilities is also considered in this section.

17. Financial Risk Management

The Lendlease Asset and Liability Committee oversees the management of the Consolidated Entity’s financial risks, within the parameters of a Board approved Treasury Policy, and maintains a Group-wide framework for financial risk management and reviews issues of material risk exposure within the scope of the Treasury Policy. A summary of key risks identified, exposures and management of exposures is detailed in the table below.

Risks Identifed	Defnition	Exposures	Management of Exposures
Credit	The risk that a counterparty will not	• Recoverability of loans and	• Policies in place so that customers
	be able to meet its obligations in	receivables	and suppliers are appropriately credit
	respect of a fnancial instrument, resulting in a fnancial loss to the Consolidated Entity	• Recoverability of other fnancial assets and cash deposits • Further information on exposures is detailed in Note 17a ‘Credit Risk	assessed • Treasury Policy sets out credit limits for each counterparty based on minimum investment grade ratings
		Exposure’
Liquidity	The risk of having insufcient funds	• Insufcient levels of committed	• Maintaining sufcient levels of cash
	to settle fnancial liabilities as and	credit facilities	and committed credit facilities to
	when they fall due	• Settlement of fnancial liabilities • Further information on exposures is detailed in Note 13 ‘Liquidity Risk Exposure’	meet fnancial commitments and working capital requirements • Managing to funding portfolio benchmarks as outlined in the Treasury Policy
			• Timely review and renewal of credit
			facilities
Interest Rate	The risk that the value of a fnancial	• Financial assets, mainly cash at	• Physical fnancial instruments
	instrument or cash fow associated with the instrument will fuctuate due to changes in market interest	bank • Financial liabilities, mainly borrowings and fnancing	• Speculative trading is not permitted
	rates	arrangements
		• Further information on exposures
		is detailed in Note 17b ‘Interest
		Rate Risk Exposure’
Equity Price	The risk that the fair value of either	• All traded and/or non traded	• Material investments within the
	a traded or non traded equity	fnancial instruments measured at	portfolio are managed on an
	investment, derivative equity	fair value	individual basis. The Consolidated
	instrument, or a portfolio of such		Entity’s portfolio is monitored closely
	fnancial instruments, increases or		as part of capital recycling initiatives
	decreases in the future

17

Notes to the Consolidated Financial Statements continued

Section D: Risk Management continued

17. Financial Risk Management continued

a. Credit Risk Exposure

The maximum exposure to credit risk at balance date on financial instruments recognised in the Statement of Financial Position (excluding investments of the Trust) equals the carrying amount.

Refer to Note 15 ‘Loans and Receivables’ for information relating to impairment on loans and receivables. No provision for doubtful debts has been raised as no impairment has been identified.

b. Interest Rate Risk Exposure

The Consolidated Entity’s exposure to interest rate risk on its financial assets and liabilities is set out as follows, the Consolidated Entity has no fixed rate instruments.

no fxed rate instruments.
		CARRYING AMOUNT
		June 2021	June 2020
	Note $’000		$’000
Variable Rate Instruments
Cash and cash equivalents	9	27,089	19,475
Loan to relatedparty	15	803,082	811,872
Total Variable Rate Instruments		830,171	831,347

Sensitivity Analysis

At 30 June 2021 it is estimated that an increase of one percentage point in interest rates would have increased the Consolidated Entity’s equity and profit after tax by $8,301,710 (June 2020: $8,313,470). A one percentage point decrease in interest rates would have an equal opposite effect on equity and profit after tax. The increase or decrease in interest income/expense is proportional to the increase or decrease in interest rates.

18. Fair Value Measurement

Accounting Policies

The accounting policies for financial instruments held at fair value are included in Note 7 ‘Other Financial Assets’. Management considers the valuation of the financial instruments to be an area of estimation uncertainty. While this represents the best estimation of fair value at the reporting date, the fair values may differ if there is volatility in market prices.

a. Basis of Determining Fair Value

The fair value of unlisted equity investments, including investments in property funds, is determined based on an assessment of the underlying net assets which may include periodic independent and directors’ valuations, future maintainable earnings, and any special circumstances pertaining to the particular investment. Fair value of unlisted equity instruments has also taken the COVID-19 pandemic into consideration to determine fair value at 30 June 2021. This includes valuations of underlying properties at balance date.

b. Fair Value Measurements

The different levels of valuation method have been defined as follows:

• Level 1: The fair value is determined using the unadjusted quoted price for an identical asset or liability in an active market for identical assets or liabilities;

• Level 2: The fair value is calculated using predominantly observable market data other than unadjusted quoted prices for an identical asset or liability; and

• Level 3: The fair value is calculated using inputs that are not based on observable market data.

During the year there were no transfers between Level 1, Level 2 and Level 3 fair value hierarchies.

19. Contingent Liabilities

The Consolidated Entity has identified the following contingent liabilities, being liabilities in respect of which there is the potential for a cash outflow in excess of any provision where the likelihood of payment is not considered probable or cannot be measured reliably at this time:

• In certain circumstances, the Trust, as part of the Group, guarantees the performance of particular Group entities in respect of their obligations. This includes bonding and bank guarantee facilities used primarily by the construction business. These guarantees are provided in respect of activities that occur in the ordinary course of business and any known losses in respect of the relevant contracts have been brought to account.

18

Notes to the Consolidated Financial Statements continued

Section E: Other Notes

20. Related Party Information

Key Management Personnel Disclosures

The Trust does not employ personnel in its own right. However it is required to have an incorporated Responsible Entity to manage its activities. The Responsible Entity is considered to be the Key Management Personnel of the Trust.

Responsible Entity’s Remuneration

In accordance with the Trust’s Constitution, the Responsible Entity is entitled to receive costs incurred in performance of its duties and expense reimbursements where expenses have been incurred on behalf of the Trust.

As at 30 June 2021, $nil (June 2020: $112,000) was charged to the Trust. The amount charged was paid to a related party of the Responsible Entity. The amount owed to the Responsible Entity at 30 June 2021 was $nil (June 2020: $nil).

Other Related Party Transactions

Transactions and outstanding balances with related parties have been disclosed in Note 3 ‘Other Income’, Note 4 ‘Finance Revenue’, Note 11 ‘Borrowings and Financing Arrangements’ and Note 15 ‘Loans and Receivables’.

21. Consolidated Entities

The material entities of the Consolidated Entity listed below were wholly owned during the current period.

PARENT ENTITY	AUSTRALIA
Lendlease Trust	Lendlease LLT Holdings Sub Trust
	Lendlease SREIT Sub Trust

During the current period, there were no acquisitions or disposals of material consolidated entities.

22. Impact of New and Revised Accounting Standards

New Accounting Standards and Interpretations Not Yet Adopted

Accounting Standard	Requirement	Impact on Financial Statements
AASB 2014-10	AASB 2014-10 amends AASB 10 and AASB	Based on preliminary analysis performed,
Amendments to Australian Accounting	128 to clarify the requirements for recording	the amendments are not expected to have a
Standards – Sale or Contribution of Assets	the sale or contribution of assets between an	material impact on the Consolidated Entity.
between an Investor and its Associate or	investor and its associate or joint venture.
_Joint Venture_and consequential amendments	The amendment becomes mandatory for the June 2023 fnancial year and will be applied
	prospectively.

23. Other Significant Accounting Policies

a. Income Tax

Under current Australian income tax legislation the Consolidated Entity is not liable for income tax, including capital gains tax, to the extent that unitholders are attributed the taxable income of the Consolidated Entity.

b. Goods and Services Tax

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the Australian Taxation Office (ATO) is included as a current asset or liability in the Statement of Financial Position. Cash flows are included in the Statement of Cash Flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

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Director’s Declaration

In the opinion of the Directors of Lendlease Responsible Entity Limited, the responsible entity for the Lendlease Trust (the Trust):

1. The consolidated financial statements and notes are in accordance with the Corporations Act 2001 , including:

2. a. Giving a true and fair view of the financial position of the Consolidated Entity as at 30 June 2021 and of its performance for the financial year ended on that date; and

3. b. Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001 .

4. The consolidated financial statements and notes also comply with International Financial Reporting Standards as disclosed in the Basis of Preparation.

5. There are reasonable grounds to believe that the Trust will be able to pay its debts as and when they become due and payable.

6. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Global Chief Executive Officer and Group Chief Financial Officer for the financial year ended 30 June 2021.

Signed in accordance with a resolution of the Directors:

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M J Ullmer, AO

Chairman

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A P Lombardo

Global Chief Executive Officer

Sydney, 16 August 2021

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Independent Auditor’s Report

To the unitholders of Lendlease Trust

Opinion

We have audited the Financial Report of Lendlease Trust (the Trust).

In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001 , including:

• giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2021 and of its financial performance for the year ended on that date; and

• complying with Australian Accounting Standards to the extent described in Note 1 and the Corporations Regulations 2001 .

The Financial Report comprises:

• Statement of financial position as at 30 June 2021;

• Statement of comprehensive income, Statement of changes in equity and Statement of cash flows for the year then ended;

• Notes including a summary of significant accounting policies; and

• Directors’ Declaration.

The Consolidated Entity consists of the Trust and the entities it controlled at the year-end or from time to time during the financial year.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards . We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report.

We are independent of the Consolidated Entity and Lendlease Responsible Entity Limited (the Responsible Entity) in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code.

Other Information

Other Information is financial and non-financial information in Lendlease Trust’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors of the Responsible Entity are responsible for the Other Information.

Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with

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KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

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the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.

Responsibilities of the Directors for the Financial Report

The Directors of the Responsible Entity are responsible for:

• preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001;

• implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and

• assessing the Consolidated Entity’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Consolidated Entity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report

Our objective is:

• to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and

• to issue an Auditor’s Report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report.

A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at:

https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our Auditor’s Report.

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KPMG

D M McLennan

Partner

Sydney

16 August 2021

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