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LENDLEASE GROUP Annual Report 2023

Aug 13, 2023

65243_rns_2023-08-13_d6f61b4e-1ab6-465d-b45e-fdafcb30482d.pdf

Annual Report

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14 August 2023

Lendlease Group 2023 Full Year Financial and Operational Metrics

Lendlease Group today announced its results for the year ended 30 June 2023. Attached is a data file comprising financial and operational metrics covering FY19 – FY23.

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

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

ENDS

FOR FURTHER INFORMATION, PLEASE CONTACT:

Investors: Media: Michael Vercoe Stephen Ellaway Head of Investor Relations Executive General Manager, Corporate Affairs Mob: +61 488 245 205 Mob: +61 417 851 287

Authorised for lodgement by the Lendlease Group Disclosure Committee

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 Ave, Barangaroo NSW Australia Telephone +61 2 9236 6111 | Facsimile +61 2 9252 2192 | www.lendlease.com

Core Business

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Core Business
FY19 FY20 FY21 FY22 FY23
Unit
Profit and Loss Summary - Core Business
Revenue A$m 13,414 10,405 8,741 8,540 9,959
Segment EBITDA1
Investments1 A$m 278 300 276 497 332
Development A$m 793 322 469 181 283
Construction A$m 211 101 173 131 90
Total Segment EBITDA A$m 1,282 723 918 809 705
Group Services A$m (140) (129) (128) (159) (138)
Group Treasury A$m (25) (29) (33) (21) (23)
Operating EBITDA1 A$m 1,117 565 757 629 544
Depreciation & Amortisation A$m (94) (160) (148) (146) (140)
Operating EBIT1 A$m 1,023 405 609 483 404
Net Finance Revenue/(Costs) A$m (125) (153) (137) (116) (88)
Operating PBT1 A$m 898 252 472 367 316
Income Tax Benefit/(Expense)1 A$m (266) (46) (95) (91) (59)
External non controlling interests A$m - - - - -
Operating PAT1 A$m 632 206 377 276 257
Reconciliation Operating to Statutory Profit/(Loss) after Tax1
Core Operating Profit After Tax A$m 632 206 377 276 257
Add / (less): Investment properties revaluations A$m 25 (19) (1) 4 (16)
Add / (less): Financial assets revaluations A$m 100 (10) 46 58 (67)
Add / (less): Equity accounted investments revaluations A$m 47 (72) (19) 8 (92)
Add / (less): Impairment losses relating to intangibles A$m - (9) - (61) -
Add / (less): Restructuring costs A$m - - - (119) -
Add / (less): Development impairments A$m - - - (223) -
Add / (less): Provision in relation to UK building remediation A$m - - - - (295)
Total Non Operating Items (post-tax) A$m 172 (110) 26 (333) (470)
Non Core Profit/(Loss) after Tax A$m (337) (406) (181) (42) (19)
Statutory Profit/(Loss) after Tax A$m 467 (310) 222 (99) (232)
Returns and Key Performance Measures - Core Business1
Number of equivalent full time employees2 no. 8,787 8,398 8,192 7,759 7,647
(EPS) Core Operating Earnings per stapled security1,3 cents 111.5 34.2 54.8 40.1 37.3
(ROE) Core Operating PAT to average securityholders' equity1 % 10.1% 3.1% 5.4% 4.0% 3.8%
Investments ROIC1 % 5.7% 5.8% 5.9% 9.7% 6.1%
Development ROIC % 11.6% 4.7% 7.2% 2.2% 3.3%
Construction EBITDA Margin % 2.2% 1.3% 2.7% 2.0% 1.2%
EBITDA Mix by Segment - % Operating EBITDA
Investments1 % 22% 41% 30% 61% 47%
Development1 % 62% 45% 51% 23% 40%
Construction1 % 16% 14% 19% 16% 13%
Key Platform Value Drivers
Funds Under Management A$b 35.2 36.0 39.6 44.4 48.3
Assets Under Management A$b 28.7 29.3 28.5 30.0 32.8
Development Pipeline A$b 76.1 113.0 113.6 117.0 124.3
Construction Backlog4 A$b 12.6 10.6 11.3 10.5 8.7
Invested Capital by Segment & Region
Investments A$b 3.6 3.7 3.6 3.7 4.0
Development A$b 4.8 4.8 4.4 5.4 6.1
Australia A$b 3.6 3.4 2.9 2.7 2.8
Asia A$b 1.2 1.4 1.4 1.8 2.1
Europe A$b 1.7 1.8 1.8 2.0 2.2
Americas A$b 1.4 1.5 1.4 1.6 2.0
Total Invested Capital5 A$b 7.8 8.2 7.7 8.1 9.1
End of sheet

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Group Summary

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Group Summary
FY19 FY20 FY21 FY22 FY23
Unit
Returns and Key Performance Measures - Total Group
Statutory Profit/(Loss) after Tax A$m 467 (310) 222 (99) (232)
(EPS) Earnings per stapled security on Statutory Profit/(Loss) after Tax3 cents 82.4 (51.4) 32.3 (14.4) (33.7)
Distribution per stapled security cents 42.0 33.3 27.0 16.0 16.0
Distribution Payout ratio6 % 51% 49% 40% 43%
Securities on issue m 564 688 689 689 689
Weighted average number of securities7 m 567 603 688 689 689
Net asset backing per security A$ 11.27 10.08 10.09 10.12 9.64
Net tangible asset backing per security A$ 8.69 7.96 7.98 8.34 7.85
Security price at period end A$ 13.00 12.37 11.46 9.11 7.75
Number of securityholders no. 62,454 66,161 69,057 66,333 61,338
(ROE) PAT to average securityholders' equity % 7.4% (4.7%) 3.2% (1.4%) (3.4%)
Effective Tax Rate8 % 24.7% 24.5% 33.6% 26.1%
FX Rates
Income Statement - Period Average
USD A$/USD 0.71 0.67 0.75 0.72 0.67
GBP A$/GBP 0.55 0.53 0.55 0.55 0.55
SGD A$/SGD 0.97 0.93 1.00 0.98 0.91
Balance Sheet - Period End
USD A$/USD 0.70 0.69 0.75 0.69 0.67
GBP A$/GBP 0.55 0.56 0.54 0.57 0.52
SGD A$/SGD 0.95 0.96 1.01 0.96 0.90
Corporate Strength - Total Group
Total tangible assets A$m 15,721 16,291 15,544 15,876 16,978
Cash A$m 1,290 1,111 1,662 1,297 900
Borrowings A$m 2,715 2,395 2,357 2,357 3,281
Operating cash flow A$m 60 137 468 (835) (486)
Investing cash flow A$m 167 (369) (216) 552 (758)
Total Operating and Investing cash flow A$m 227 (232) 252 (283) (1,244)
Financing cash flow A$m (128) 495 (146) (106) 723
Total cash flow A$m 99 263 106 (389) (521)
Ratio of current assets to current liabilities times 0.9x 1.1x 0.8x 0.9x 0.8x
Ratio of current assets to current liabilities (excluding resident and accommodation bond liabilities) times 0.9x 1.1x 0.8x 0.9x 0.8x
Gearing9 % 9.9% 5.7% 5.0% 7.3% 14.8%
Interest cover10 times 8.8x 2.8x 6.4x 5.6x 3.0x
Average cost of debt % 4.0% 3.4% 3.6% 3.6% 4.3%
Average debt maturity years 4.8 4.2 4.9 6.6 4.4

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Group Summary

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Group Summary
FY19 FY20 FY21 FY22 FY23
Unit
Balance Sheet - Total Group
Statement of Financial Position
Current Assets
Cash and cash equivalents A$m 1,290 1,111 1,662 1,297 900
Loans and receivables A$m 2,050 1,667 1,741 2,033 2,299
Inventories A$m 2,238 2,256 1,469 1,459 1,562
Current tax assets A$m 11 27 9 - -
Other financial assets A$m 97 16 7 24 32
Other assets A$m 70 59 62 51 57
Disposal Group assets held for sale A$m 841 - - -
Total current assets A$m 5,756 5,977 4,950 4,864 4,850
Non Current Assets
Loans and receivables A$m 688 744 1,871 1,896 1,439
Inventories A$m 3,345 3,113 2,404 2,320 2,681
Equity accounted investments A$m 3,452 3,671 3,758 4,379 5,647
Investment properties A$m 501 658 467 482 539
Other financial assets A$m 1,103 1,076 1,080 1,181 1,140
Deferred tax assets A$m 101 141 115 144 219
Property, plant and equipment A$m 548 693 594 272 247
Intangible assets A$m 1,457 1,457 1,456 1,225 1,236
Defined benefit plan asset A$m 140 156 243 282 171
Other assets A$m 87 62 62 56 45
Total non current assets A$m 11,422 11,771 12,050 12,237 13,364
Total assets A$m 17,178 17,748 17,000 17,101 18,214
Current Liabilities
Trade and other payables A$m 5,724 4,496 4,839 4,557 4,646
Resident liabilities A$m - - - - -
Provisions A$m 332 343 575 720 708
Current tax liabilities A$m - - - 49 3
Borrowings and financing arrangements A$m 225 134 555 - 19
Other financial liabilities A$m 6 10 14 28 53
Disposal Group liabilities held for sale A$m 670 - - -
Total current liabilities A$m 6,287 5,653 5,983 5,354 5,429
Non Current Liabilities
Trade and other payables A$m 1,401 2,405 1,760 1,988 2,333
Provisions A$m 45 62 80 68 326
Borrowings and financing arrangements A$m 2,490 2,261 1,802 2,357 3,262
Defined benefit plan liability A$m - - - - -
Other financial liabilities A$m 1 1 23 102 87
Deferred tax liabilities A$m 597 434 401 262 133
Total non current liabilities A$m 4,534 5,163 4,066 4,777 6,141
Total liabilities A$m 10,821 10,816 10,049 10,131 11,570
Net Assets A$m 6,357 6,932 6,951 6,970 6,644
Equity
Issued capital A$m 1,300 1,889 1,888 1,891 1,894
Treasury securities A$m (68) (68) (79) (77) (67)
Reserves A$m 105 65 3 184 273
Retained earnings A$m 3,815 3,265 3,327 3,078 2,653
Total equity attributable to members of Lendlease Corporation Limited A$m 5,152 5,151 5,139 5,076 4,753
Total equity attributable to unitholders of Lendlease Trust A$m 1,182 1,756 1,788 1,867 1,863
Total equity attributable to securityholders A$m 6,334 6,907 6,927 6,943 6,616
External non controlling interests A$m 23 25 24 27 28
Total equity A$m 6,357 6,932 6,951 6,970 6,644

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Group Summary

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Group Summary
FY19 FY20 FY21 FY22 FY23
Unit
Cash Flow Statement - Total Group
Cash Flows from Operating Activities
Cash receipts in the course of operations A$m 17,026 13,488 9,531 8,893 10,801
Cash payments in the course of operations A$m (16,902) (13,313) (8,916) (9,606) (11,104)
Interest received A$m 13 16 6 3 27
Interest paid in relation to other corporations A$m (152) (164) (128) (129) (192)
Interest in relation to lease liabilities A$m (25) (20) (17) (15)
Dividends/distributions received A$m 105 146 80 109 113
Income tax received/(paid) in respect of operations A$m (30) (11) (85) (88) (116)
Net cash provided by/(used in) operating activities A$m 60 137 468 (835) (486)
Cash Flows from Investing Activities
Sale/redemption of investments A$m 571 448 573 846 622
Acquisition of investments A$m (378) (709) (301) (985) (1,632)
Sale of investment properties A$m 82 84
Acquisition of/capital expenditure on investment properties A$m (53) (57) (110) (71) (6)
Net loan repayments/(drawdowns) from associates and joint ventures A$m (22) (9) (13) (13) 6
Disposal/acquisition of consolidated entities (net of cash disposed and transaction costs) A$m 266 136 (266) 709 247
Disposal of property, plant and equipment A$m 14 11 22 69 -
Disposal of other financial assets A$m 3
Acquisition of property, plant and equipment A$m (165) (112) (53) (10) (28)
Acquisition of intangible assets A$m (66) (77) (68) (75) (54)
Net cash provided by/(used in) investing activities A$m 167 (369) (216) 552 (758)
Cash Flows from Financing Activities
Net proceeds from share issue A$m 1,193 - - -
Proceeds from borrowings A$m 4,640 4,658 3,503 2,457 5,235
Repayment of borrowings A$m (4,347) (4,970) (3,470) (2,387) (4,333)
Dividends/distributions paid A$m (258) (327) (121) (114) (105)
Proceeds from sale of treasury securities A$m - - - - -
Payments for on market buyback of stapled securities A$m (174) - - - -
Payments for on market buyback of stapled securities - Dividend Reinvestment Plan A$m (11) - - - -
Other financing activities A$m - - - - -
Increase in capital of non controlling interest A$m 22 2 2 2 -
Repayment of lease liabilities A$m (61) (60) (64) (74)
Net cash provided by/(used in) financing activities A$m (128) 495 (146) (106) 723
Effect of foreign exchange rate movements on cash and cash equivalents A$m 14 9 (6) 24 124
Net increase/(decrease) in cash and cash equivalents A$m 113 272 100 (365) (397)
Cash and cash equivalents at beginning of financial year A$m 1,177 1,290 1,562 1,662 1,297
Cash and cash equivalents at end of financial year A$m 1,290 1,562 1,662 1,297 900

End of sheet

Non Core

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Non Core
FY19 FY20 FY21 FY22 FY23
Unit
Profit and Loss Summary - Non Core1
Revenue A$m 3,141 2,884 1,444 784 499
EBITDA2 A$m (461) (495) (139) (31) (102)
Depreciation & Amortisation A$m (28) (84) (59) (17) (3)
EBIT A$m (489) (579) (198) (48) (105)
Net Finance Revenue/(Costs) A$m - 5 1 - -
PBT A$m (489) (574) (197) (48) (105)
Income Tax Benefit/(Expense) A$m 152 168 16 6 86
PAT A$m (337) (406) (181) (42) (19)

End of sheet

Investments

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Investments
FY19 FY20 FY21 FY22 FY23
Unit
Profit and Loss
Investments Revenue A$m 348 390 348 346 330
Australia A$m 210 172 164 192 189
Asia A$m 63 134 77 82 86
Europe A$m 13 16 14 18 23
Americas A$m 62 68 93 54 32
Investments Operating EBITDA1 A$m 278 300 276 497 332
Australia A$m 199 130 135 177 118
Asia A$m 28 119 54 119 81
Europe A$m 9 (10) (12) (2) 3
Americas A$m 42 61 99 203 130
Investments Operating PAT1 A$m 196 214 213 361 245
Australia A$m 149 97 97 132 94
Asia A$m 9 96 55 94 66
Europe A$m 10 (9) (6) (3) 1
Americas A$m 28 30 67 138 84
Investments Fees by activity A$m 317 284 283 275
Funds Under Management Fees A$m 212 145 172 177
Assets Under Management Fees A$m 105 139 111 98
Operating EBITDA by activity A$m
Management EBITDA A$m 144 198 165 141 104
Investments Portfolio EBITDA1 A$m 134 102 111 356 228
Investments ROIC1 % 5.7% 5.8% 5.9% 9.7% 6.1%
Investments Invested Capital A$b 3.6 3.7 3.6 3.7 4.0
Investment segment property valuation movements (pre-tax) A$m 211 (147) 19 74 (230)
Operational Metrics (Investments Segment)
Investments Portfolio
Investments Portfolio by Region A$m 3,675 3,998 3,511 3,492 3,943
Australia A$m 2,513 2,330 1,936 1,706 1,714
Asia A$m 708 914 827 993 990
Europe A$m 40 79 306 297 735
Americas A$m 414 675 442 496 504
Investments Portfolio by Sector2 A$m 3,675 3,998 3,511 3,492 3,943
Workplace A$m 953 853 870 933 1,214
Residential A$m 1,649 1,775 1,598 1,209 1,359
Retail A$m 720 934 897 955 945
Data Centres and Industrial A$m 95 101 120 297 277
Infrastructure A$m 40 40 26 27 26
Other A$m 218 295 - 71 122

Investments

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Investments
FY19 FY20 FY21 FY22 FY23
Unit
Funds Under Management
FUM by Region A$b 35.2 36.0 39.6 44.4 48.3
Australia A$b 24.8 24.7 27.6 31.1 30.8
Asia A$b 8.2 8.7 8.4 9.4 10.4
Europe A$b 1.5 1.6 1.9 1.9 4.6
Americas A$b 0.7 1.0 1.7 2.0 2.5
FUM by Sector2 A$b 35.2 36.0 39.6 44.4 48.3
Workplace A$b 17.7 19.3 21.6 25.0 26.9
Residential A$b 1.0 1.7 2.5 2.8 3.2
Retail A$b 14.8 13.0 12.8 12.4 12.2
Data Centres and Industrial A$b 1.0 1.1 1.8 2.8 3.0
Infrastructure A$b 0.5 0.8 0.9 0.9 0.9
Other A$b 0.2 0.0 - 0.5 2.1
Assets Under Management
AUM by Region A$b 28.7 29.3 28.5 30.0 32.8
Australia A$b 7.5 6.1 6.4 6.6 5.7
Asia A$b 7.2 8.5 7.6 8.1 8.8
Europe A$b 0.7 0.5 1.6 1.3 3.4
Americas A$b 13.3 14.2 12.9 14.0 14.9
AUM by Sector2 A$b 28.7 29.3 28.5 30.0 32.8
Residential A$b 13.3 14.2 13.7 14.8 15.9
Retail A$b 12.7 12.0 11.8 12.1 11.7
Workplace A$b 2.7 3.1 3.0 3.1 5.2
Residential AUM A$b 13.3 14.2 13.7 14.8 15.9
Europe A$b 0.8 0.8 1.0
Americas A$b 13.3 14.2 12.9 14.0 14.9
Commercial AUM A$b 15.4 15.1 14.8 15.2 16.9
Australia A$b 7.5 6.1 6.4 6.6 5.7
Asia A$b 7.2 8.5 7.6 8.1 8.8
Europe A$b 0.7 0.5 0.8 0.5 2.4
Americas A$b - - - - -

End of sheet

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Funds Under Management

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FY19 FY20 FY21 FY22 FY23
Unit Fund Type Asset Class
Australia
Funds Under Management
Australian Prime Property Fund Retail A$b Core Retail 5.7 4.4 4.0 3.8 3.2
Australian Prime Property Fund Commercial A$b Core Workplace 5.1 5.2 6.0 6.9 6.6
Australian Prime Property Fund Industrial A$b Core Data Centres and Industrial 1.0 1.1 1.4 1.7 2.1
Lendlease Sub Regional Retail Fund A$b Core Retail 0.6 0.5 0.4 0.4 0.1
Lendlease Real Estate Partners New Zealand A$b Core Retail 0.3 0.3 0.2 0.2 0.3
Lendlease International Towers Sydney Trust A$b Core Workplace 4.6 4.8 4.9 5.1 4.7
Aware Super Scheme Infrastructure Investment Company A$b Core Infrastructure 0.4 0.4 0.4 0.4 0.4
Lendlease One International Towers Sydney Trust A$b Core Workplace 2.7 2.7 2.8 3.0 2.9
Managed Investment Mandates A$b Core Various 4.4 5.3 7.5 9.1 9.5
Lendlease Develop To Core Industrial Partnership A$b Value Add Data Centres and Industrial 0.3 0.2
Real Estate Partners 4 (REP4) A$b Value Add Other 0.2 0.8
Total FUM A$b 24.8 24.7 27.6 31.1 30.8
Asia
Funds Under Management
Parkway Parade Partnership Limited S$b Core Plus Retail 1.4 1.4 1.3 1.3 1.4
Lendlease Jem Partners Fund Limited S$b Core Retail and Workplace 0.6 0.6 0.6 - -
Paya Lebar Quarter S$b Core Retail and Workplace 3.1 3.2 3.1 3.1 3.2
Lendlease Asian Retail Investment Fund (ARIF) S$b Core Retail and Workplace 2.7 1.8 1.8 0.2 0.2
Lendlease Global Commercial REIT S$b Core Retail and Workplace 1.4 1.4 3.7 3.8
Lendlease Data Centre Partners S$b Core Plus Data Centres and Industrial 0.3 0.3 0.3
Certis Cisco Centre S$b Core Plus Workplace 0.1 0.3
Lendlease Innovation Limited Partnership (LINO) S$b Core Plus Workplace 0.3 0.3
Total FUM S$b 7.8 8.4 8.5 9.0 9.5
Europe
Funds Under Management
Lendlease Retail LP £b Core Retail 0.6 0.4 0.3 - -
Lendlease Residential Investment Partnership £b Core Residential 0.2 0.3 0.4 0.5 0.4
Lendlease Residential Investment Partnership 2 £b Core Residential 0.1 0.1 0.1 0.1
Lendlease MSG 1 Europe Investment Partnership £b Core Workplace 0.1 0.2 0.3 0.3
Lendlease Renaissance 1 £b Core Other 0.1 0.2
International Quarter London Office Partnership £b Core Workplace 0.1 0.2
Lendlease Moorfields (Europe) Investment Partnership £b Core Workplace 0.7
0.6
Total FUM £b 0.8 0.9 1.0 1.1 2.5
Americas
Funds Under Management
Lendlease Americas Residential Partnership US$b Value Add Residential 0.5 0.7 1.1 1.3 1.5
60 Guest US$b Value Add Workplace 0.2 0.1 0.2
Total FUM US$b 0.5 0.7 1.3 1.4 1.7

End of sheet

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Development

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Development
FY19 FY20 FY21 FY22 FY23
Unit
Profit and Loss
Development Revenue A$m 3,355 2,344 1,965 1,579 2,333
Australia A$m 2,712 1,198 1,239 962 1,615
Asia A$m 18 13 11 31 50
Europe A$m 544 969 511 523 394
Americas A$m 81 164 204 63 274
Development EBITDA A$m 793 322 469 181 283
Australia A$m 556 174 396 199 276
Asia A$m 121 34 (20) (9) 20
Europe A$m 37 116 70 24 4
Americas A$m 79 (2) 23 (33) (17)
Development PAT A$m 554 233 342 111 192
Australia A$m 395 118 278 133 196
Asia A$m 79 18 (19) (13) 16
Europe A$m 27 93 69 16 (5)
Americas A$m 53 4 14 (25) (15)
Development ROIC % 11.6% 4.7% 7.2% 2.2% 3.3%
Development Invested Capital A$b 4.8 4.8 4.4 5.4 6.1
Development Pipeline A$b 76.1 113.0 113.6 117.0 124.3
Development Commencements1 A$b 5.6 5.9 7.7
Development Work in Progress1 A$b 11.2 12.3 14.5 18.4 22.9
Development Completions1 A$b 5.6 5.0 3.8 2.5 3.6
Development Pipeline and Completions1
Pipeline by product A$b 76.1 113.0 113.6 117.0 124.3
Communities A$b 14.7 13.9 13.2 15.6 16.2
Residential Build to sell A$b 26.7 45.2 41.6 37.9 45.6
Residential Build to rent A$b 5.9 23.8 25.0 28.0 28.5
Commercial2 A$b 28.6 29.8 33.8 35.5
Workplace A$b 28.1
Other A$b 5.9
Infrastructure A$b 0.2 0.3 - - -
Pipeline by region A$b 76.1 113.0 113.6 117.0 124.3
Australia A$b 29.3 28.9 28.2 27.6 29.2
Asia A$b 5.0 4.2 5.6 8.3 9.0
Europe A$b 34.1 50.1 51.8 52.4 54.9
Americas A$b 7.7 29.8 28.0 28.7 31.2
Major Urban Projects3
Projects no. 20 21 23 21 21
Gateway cities no. 10 9 10 9 9
Urban Pipeline A$b 61.2 98.8 100.4 101.4 108.1
Work in Progress A$b 10.6 11.8 14.1 17.3 21.9
Remaining A$b 50.6 87.0 86.3 84.1 86.2
Communities Pipeline A$b 14.7 13.9 13.2 15.6 16.2
Work in Progress (Presold) A$b 0.6 0.5 0.4 1.1 1.0
Remaining A$b 14.1 13.4 12.8 14.5 15.2

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Development

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Development
FY19 FY20 FY21 FY22 FY23
Unit
Commencements1 by product A$b 5.6 5.9 7.7
Communities A$b 0.7 1.0 0.7
Residential Build to sell A$b 2.9 0.7 3.6
Residential Build to rent A$b 0.4 1.4 0.9
Commercial2 A$b 1.6 2.8
Workplace A$b 1.9
Other A$b 0.6
Commencements1 by region A$b 5.6 5.9 7.7
Australia A$b 3.5 2.0 4.3
Asia A$b 1.0 0.9 0.4
Europe A$b 0.5 0.8 -
Americas A$b 0.6 2.2 3.0
Work in Progress1 by product A$b 11.2 12.3 14.5 18.4 22.9
Communities A$b 0.6 0.5 0.4 1.1 1.0
Residential Build to sell A$b 3.1 3.9 5.9 6.1 9.8
Residential Build to rent A$b 1.6 2.2 1.3 1.9 2.7
Commercial2 A$b 5.9 5.7 6.9 9.3
Workplace A$b 6.7
Other A$b 2.7
Work in Progress1 by region A$b 11.2 12.3 14.5 18.4 22.9
Australia A$b 4.4 6.8 8.8 10.3 11.3
Asia A$b 3.0 1.7 2.7 3.3 3.7
Europe A$b 2.1 1.8 1.2 1.6 1.3
Americas A$b 1.7 2.0 1.8 3.2 6.6
Development Completions1 by product A$b 5.6 5.0 3.8 2.5 3.6
Communities A$b 0.6 0.5 0.7 0.5 0.8
Residential Build to sell A$b 1.8 2.3 0.7 0.7 0.1
Residential Build to rent A$b 0.3 0.3 1.3 0.9 0.1
Commercial2 A$b 2.9 1.9 1.1 0.4
Workplace A$b 2.6
Other A$b -
Development Completions1 by region A$b 5.6 5.0 3.8 2.5 3.6
Australia A$b 2.7 1.1 2.0 0.5 3.4
Asia A$b 2.1 1.7 0.2 0.5 -
Europe A$b 0.5 1.1 1.0 0.5 0.2
Americas A$b 0.3 1.1 0.6 1.0 -

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Development

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Development
FY19 FY20 FY21 FY22 FY23
Unit
Residential for sale Summary
Total Sales A$m 860 2,365 2,029 2,931 2,669
Australia Apartments A$m 114 1,583 1,022 1,013 1,700
Asia Apartments A$m 71 167 52 33 96
Europe Apartments A$m 121 63 152 615 93
Americas Apartments A$m 175 184 188 249 165
Australia Communities A$m 373 370 542 1,021 605
Other Communities4 A$m 5 - 73 - 10
Total Settlements A$m 2,630 2,021 1,275 790 978
Australia Apartments A$m 1,574 241 169 37 92
Asia Apartments5 A$m 609 - - -
Europe Apartments A$m 282 477 199 116 106
Americas Apartments A$m 208 169 268 238 60
Australia Communities A$m 561 526 567 399 710
Other Communities4 A$m 5 - 73 - 10
Total Presales A$m 2,536 2,918 3,606 5,746 7,448
Australia Apartments A$m 458 1,794 2,647 3,622 5,229
Asia Apartments5 A$m 571 152 191 225 324
Europe Apartments A$m 732 343 265 760 748
Americas Apartments A$m 150 159 62 76 186
Australia Communities A$m 625 469 441 1,063 961
Total Sales no. 1,993 2,080 2,608 4,267 2,462
Australia Apartments no. 155 348 214 229 268
Asia Apartments no. 37 242 78 43 144
Europe Apartments no. 175 43 113 785 73
Americas Apartments no. 58 100 58 96 66
Australia Communities no. 1,422 1,347 1,940 3,114 1,765
Other Communities4 no. 146 - 205 - 146
Total Settlements no. 4,146 3,264 3,054 1,755 2,725
Australia Apartments no. 1,281 369 240 51 127
Asia Apartments5 no. 429 - - -
Europe Apartments no. 296 471 240 142 161
Americas Apartments no. 46 97 141 84 38
Australia Communities no. 2,377 1,898 2,228 1,478 2,253
Other Communities4 no. 146 - 205 - 146
Total Presales no. 4,499 3,312 2,801 5,309 5,055
Australia Apartments no. 675 652 623 801 942
Asia Apartments5 no. 423 236 314 357 501
Europe Apartments no. 1,013 585 398 1,037 958
Americas Apartments no. 112 114 31 43 71
Australia Communities no. 2,276 1,725 1,435 3,071 2,583

End of sheet

Construction

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FY19 FY20 FY21 FY22 FY23
Unit
Profit and Loss - Core Business
Construction Revenue A$m 9,680 7,627 6,398 6,579 7,203
Australia A$m 4,052 3,217 2,868 3,187 3,707
Asia A$m 401 255 262 261 295
Europe A$m 941 782 861 898 742
Americas A$m 4,286 3,373 2,407 2,233 2,459
Construction EBITDA A$m 211 101 173 131 90
Australia A$m 126 97 112 121 105
Asia A$m (1) (11) 20 5 (1)
Europe A$m 40 (9) 2 4 11
Americas A$m 46 24 39 1 (25)
Construction PAT A$m 141 42 100 68 32
Australia A$m 84 62 72 80 58
Asia A$m (2) (14) 10 (2) (4)
Europe A$m 31 (11) 2 - 3
Americas A$m 28 5 16 (10) (25)
Construction EBITDA Margin % 2.2% 1.3% 2.7% 2.0% 1.2%
Australia % 3.1% 3.0% 3.9% 3.8% 2.8%
Asia % (0.2%) (4.3%) 7.6% 1.9% (0.3%)
Europe % 4.3% (1.2%) 0.2% 0.4% 1.5%
Americas % 1.1% 0.7% 1.6% - (1.0%)
New Work Secured and Backlog Revenue - Core Business
New Work Secured1 A$b 5.2 6.9 5.3 4.7
Australia A$b 3.0 3.1 3.6 2.4
Asia A$b 0.1 0.3 0.3 0.1
Europe A$b 0.3 1.2 0.3 0.1
Americas A$b 1.8 2.3 1.1 2.1
Backlog Revenue1 A$b 12.6 10.6 11.3 10.5 8.7
Australia A$b 5.7 6.3 7.0 5.7
Asia A$b 0.1 0.1 0.2 0.1
Europe A$b 1.0 1.3 0.7 0.4
Americas A$b 3.8 3.6 2.6 2.5
Backlog realisation2
Next 12 months % 31% 51% 56%
Australia % 19% 48% 57%
Asia % 89% 78% 72%
Europe % 67% 69% 89%
Americas % 38% 56% 46%
12 - 24 months % 36% 28% 27%
Australia % 41% 32% 27%
Asia % 11% 13% 25%
Europe % 31% 30% 10%
Americas % 30% 17% 31%
Beyond 24 months % 33% 21% 17%
Australia % 40% 20% 16%
Asia % - 9% 3%
Europe % 2% 1% 1%
Americas % 32% 27% 23%
Book to bill3 ratio 1.1 0.8 0.7
End of sheet

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

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

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

Term

Assets Under Management

Definition

Total market value of gross assets managed by Lendlease.

Book to Bill

Ratio calculated as external new work secured over external revenue realised.

Construction backlog realisation

The proportion of construction backlog revenue which is expected to be earned across future periods.

Construction backlog revenue Core Operating Earnings per security

Construction revenue to be earned in future periods (excludes internal projects).

Core Operating Profit after Tax divided by the weighted average number of securities on issue during the period (including treasury securities).

Core Operating Return on equity (ROE)

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

Project end value on product commenced during a financial period (representing 100% of project value).

Development Commencements Project end value on product commenced during a financial period (representing 100% of project value). Development Completions Project end value on product completed during a financial period (representing 100% of project value). Development Pipeline Total estimated end value (representing 100% of project value). Development Work in Progress End value of Development Pipeline in delivery as at period end (representing 100% of project value). Distribution payout ratio Distribution divided by Core Operating Profit after Tax. Distribution per security For the full year (FY) reflects the amount of interim and final distribution per stapled security from the Company / Trust. For the half year (1H) reflects the amount of interim distribution per stapled security from the Company / Trust. Earnings per security Statutory Profit after Tax divided by the weighted average number of securities on issue during the period (including treasury securities). Effective tax rate Income tax expense as a percentage of statutory profit before tax. Funds under management (FUM) Total market value of investments across Lendlease managed funds. Gearing Net debt to total tangible assets, less cash. Invested capital Represents securityholder equity plus gross debt less cash on balance sheet. Invested equity Invested equity refers to the contributed equity for each project. Investments Portfolio Includes equity invested in Lendlease managed funds and direct investment in property and property related

Includes equity invested in Lendlease managed funds and direct investment in property and property related assets. Represents the Group’s assessment of market value.

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Investments - Management EBITDA

Earnings primarily derived from the investment management platform and the management of US Military Housing operations.

Investments - Investments Portfolio EBITDA Returns excluding Investments segment revaluations derived from investments, the Group's Retirement
investment, US Residential Housing equity investment and infrastructure investment.
Market capitalisation The number of securities on issue multiplied by the security price at period end.
Net debt Borrowings, including certain other financial liabilities, less cash.
New work secured revenue Estimated revenue to be earned from construction contracts secured during the period. New work is secured and
forms part of construction backlog revenue when formal contracts are signed.
Operating EBITDA Operating Earnings before interest, tax, depreciation and amortisation.
Operating Profit after tax (OPAT) Statutory profit adjusted for Investment property revaluations (including in Other financial assets and Equity
accounted investments) that are classified in the Investment segment, and material one-off items that could not
reasonably have been expected to arise from normal operations.
Presales ($) Total sales value of units that have been sold and not yet settled. Includes units sold but not yet in delivery.
Includes 100% of joint venture projects and therefore will not necessarily correlate with the Group’s Profit after Tax.
Presales (units) Units that have been sold and not yet settled. Includes units sold but not yet in delivery.
Profit after tax (PAT) Profit after Tax attributable to securityholders, determined in accordance with Australian Accounting Standards.
Return on invested capital (ROIC) Full year (FY) ROIC is calculated using the annual Operating Profit after Tax divided by the arithmetic average of
beginning, half and year end invested capital.
Half year (1H) ROIC is calculated on an annualised basis using the half year Operating Profit after Tax divided by
the arithmetic average of beginning and half year end invested capital.
Settlements (units) Apartments - units cash settled in the period on completed units in Australia, Europe and Americas, and units which
have reached practical completion in Asia.
Communities & Retirement - units settled in the period on completed land lots or units.
Urban pipeline Estimated end value of all of the Group’s secured development projects (excluding Communities) as at period end;
Includes 100% of joint venture projects and therefore will not necessarily correlate with the Group’s Profit after Tax.
Weighted average number of securities The time weighted number of securities outstanding during the period.

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Core and Group Summary

  1. On 31 August 2020, the Group announced a Strategy Update with Operating EBITDA and Operating PAT reported as primary earnings metrics going forward in addition to a statutory result. Comparatives have been restated to present on an Operating earnings basis.

  2. Excludes full time equivalent employees from FY22 for Retirement Living. Comparatives have not been restated.

  3. Earnings per stapled security is nonmeaningful in 2H20 due to share issue, and FY19 and 1H20 comparatives have not been restated.

  4. Construction revenue to be earned in future periods (excludes internal projects).

  5. Total Invested Capital includes Corporate.

  6. Distribution Payout Ratio is nonmeaningful in FY20 due to the Group statutory loss. Distribution Payout Ratio from 1H21 has been calculated on Core Operating Earnings.

  7. FY19 and 1H20 Weighted average number of securities have not been restated to reflect the share issue in 2H20.

  8. Effective Tax Rate is nonmeaningful in 1H19 due to the $500m pre-tax impact from losses expected to be incurred on underperforming Engineering projects and in FY20 due to the Group statutory loss.

  9. Net debt and gross borrowings include certain other financial liabilities. 1H20 and FY20 include $701m and $451m respectively of cash and cash equivalents for discontinued operations classified as Assets held for sale.

  10. Interest cover has been adjusted to exclude one off items related to the Engineering business, and other Non Operating Items (1H19/FY19: $500m; FY20: $525m; FY21: $185m; 1H22: $448m, FY22: $561m, 1H23 $200m, FY23 $295m).

Non Core

  1. The Group completed the sale of the Engineering business to Acciona Infrastructure Asia Pacific (Acciona) on 9 September 2020. The Group completed the sale of the Services business to Service Stream on 1 November 2021.

  2. FY22 Non Core EBITDA of ($31m) includes $25m in tenancy impairments.

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Investments

  1. On 31 August 2020, the Group announced a Strategy Update with Operating EBITDA and Operating PAT reported as primary earnings metrics going forward in addition to a statutory result. Comparatives have been restated to present on an Operating earnings basis.

  2. Sectors have been updated as at Lendlease Strategy Briefing in November 2022. Comparatives have been restated to reflect revised sectors.

Development

  1. On 31 August 2020, the Group announced a Strategy Update which included the introduction of new operational metrics, Development Commencements, Development Work in Progress and Development Completions.

  2. Sectors have been updated as at Lendlease Strategy Briefing in November 2022. Commercial includes Workplace & Other sectors.

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

  4. Includes Europe Communities and Americas Communities.

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

Construction

  1. Construction revenue to be earned in future periods (excludes internal projects). Comparatives presented have been restated to exclude internal projects.

  2. 1H backlog realisation is broken down into the following periods: next 6 months; 6-18 months; and beyond 18 months.

  3. Ratio calculated as external new work secured over external revenue to the nearest million.