LENDLEASE GROUP — Interim / Quarterly Report 2012

Feb 19, 2012

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20 February 2012

The Manager Companies Section ASX Limited

Pages: Thirty seven (37) Pages

Half Year Results – December 2011

Further to Lend Lease Group’s earlier announcement today, attached are the following documents:

• ASX and Media Announcement

• Results Presentation

ENDS

For further information please contact:

Sally Cameron Lend Lease Group Tel: 02 9236 6464

Lend Lease Corporation Limited ABN 32 000 226 228 and Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

1

Level 4, 30 The Bond 30 Hickson Road Millers Point NSW 2000 Australia

Telephone +61 2 9236 6111 Facsimile +61 2 9252 2192 www.lendlease.com

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ASX Announcement

Lend Lease delivers solid result in difficult market conditions

20 February 2012

• Statutory profit after tax of A$217.8 million for the half year

• Operating profit after tax of A$220.8 million for the half year, 0.3% above corresponding prior period (six months ended 31 December 2010)

• Interim distribution of 16 cents per security, unfranked

• Integration of infrastructure acquisition well progressed and delivering results in line with expectations

• Achieved significant milestones on major projects

• Strong balance sheet and continued recycling of capital to fund pipeline

Profit after Tax

The Group’s statutory profit after tax for the half year of A$217.8 million includes negative property investment revaluations of A$3.0 million after tax. Lend Lease delivered an operating profit after tax for the half year ended 31 December 2011 of A$220.8 million.

Lend Lease declared an interim distribution of 16 cents per security, unfranked. This represents a payout ratio of 41% of operating profit after tax for the half year.

	Dec 2011	Dec 2010
	A$m	A$m
Operating profit after tax1	220.8	220.2
Propertyinvestment revaluations	(3.0)	6.3
Statutory profit after tax	217.8	226.5
Interim distribution2	16 cps	20 cps
Earningsper security (EPS)on operating profit after tax~~3~~	38.6 cps	38.9 cps

1 The Group’s statutory results are prepared in accordance with International Financial Reporting Standards (IFRS). The operating results are non-IFRS measures which are used by the Group to measure and assess performance and make decisions on the allocation of resources. The operating results exclude unrealised property investment revaluation gains and losses.

2 The interim distribution for the current period will be unfranked. December 2010 was 50% franked.

3 Based on operating profit after tax and weighted average number of securities on issue including treasury securities.

Group Chief Executive Officer and Managing Director, Steve McCann, said Lend Lease delivered a very solid first half result in difficult market conditions.

“The Group has clear priorities and is focussed on the delivery of its major projects, integrating the infrastructure business into the Australian region, optimising its portfolio mix and positioning the Group’s offshore businesses for market recovery.

Lend Lease Corporation Limited ABN 32 000 226 228 and

Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

Telephone +61 2 9236 6111 Facsimile +61 2 9252 2192 www.lendlease.com

Level 4, 30 The Bond 30 Hickson Road Millers Point NSW 2000 Australia

1

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“During the six months ended 31 December 2011, the Group made significant progress implementing its strategy including the commencement of construction at Barangaroo South in Sydney and RNA Showgrounds in Brisbane, and the integration of the infrastructure business in Australia.

“In addition, the Group realised over A$780 million cash from recycling major assets, including the sale of King of Prussia, which will be reinvested in the Group’s significant pipeline”, said Mr McCann.

Trading Update

Operating Profit after Tax	Dec 2011 A$m	Dec 2010 A$m	% change
Australia	207.1	136.7	51.5
Asia	28.8	15.8	82.3
Europe	43.0	94.6	(54.6)
Americas	18.1	28.9	(37.4)
Total Operating Businesses	297.0	276.0	7.6
Group Services	(35.8)	(36.0)	0.6
Group Treasury	(39.2)	(18.3)	(114.2)
GroupAmortisation	(1.2)	(1.5)	20.0
Total Corporate	(76.2)	(55.8)	(36.6)
Total Operating Profit after Tax	220.8	220.2	0.3
PropertyInvestment Revaluations	(3.0)	6.3	N/A
Total Statutory Profit after Tax1	217.8	226.5	(3.8)

1 Statutory profit after tax includes negative property investment revaluations of A$3.0 million after tax (Australia: negative property investment revaluations of A$0.8 million after tax; Asia: positive property investment revaluations of A$3.7 million after tax and Europe: negative property investment revaluations after tax of A$5.9 million).

Australia

• Operating profit in Australia increased primarily due to higher profit in the construction business which includes the results of the infrastructure business that was acquired on 10 March 2011;

• The infrastructure business is delivering results in line with expectations determined by the Group during the acquisition process. The infrastructure business had strong growth in backlog revenue from A$6.0 billion as at 30 June 2011 to A$6.8 billion as at 31 December 2011. The infrastructure and project management and construction business in Australia together had backlog revenue of A$9.9 billion as at 31 December 2011;

• The New South Wales (NSW) Government released the Barangaroo South review which confirmed that Barangaroo South has planning consent and the findings increase certainty that the A$6.0 billion project can proceed on schedule (refer to page 4 for a separate update on Barangaroo South);

Lend Lease Corporation Limited ABN 32 000 226 228 and

Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

Level 4, 30 The Bond 30 Hickson Road Millers Point NSW 2000 Australia

Telephone +61 2 9236 6111 Facsimile +61 2 9252 2192 www.lendlease.com

2

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• In the residential business, market conditions have been impacted by weak consumer sentiment resulting in lower enquiry levels, longer conversion times and lower trading volumes;

• The Group was selected as the preferred proponent for the A$1billion Waterbank mixeduse redevelopment site in Perth, Western Australia by the Metropolitan Redevelopment Authority;

• Funds under management in the investment management business grew by 10% to A$8.5 billion following strong growth in existing funds and the launch of the Lend Lease Real Estate Partners New Zealand Fund;

• The result of the Australian business includes a profit from the sale of the New Zealand Retail Portfolio to the Lend Lease Real Estate Partners New Zealand Fund; and

• The result also includes the sale of the Group’s equity interest in the South Australia New Schools PPP project.

Asia

• Operating profit after tax in Asia includes fees from the Group’s development projects and deferred proceeds and completion adjustments from the sale of the Group’s 25% ownership interest in the PoMo mixed-use asset in Singapore which closed last year; and

• The Jem™ mixed-use development in Singapore is progressing well and a key contributor to earnings.

Europe

• Operating profit after tax in Europe includes the sale of the Group’s equity in three operational healthcare and education PPP assets to the Lend Lease managed UK Infrastructure Fund and the sale of the Group’s ownership interest in the Chelmsford Meadows retail centre;

• The construction business reported higher earnings despite continuing difficult market conditions; and

• The Group made further progress in relation to its major urban regeneration projects including securing planning approval for the masterplan of The International Quarter, Stratford City.

Americas

• The Group completed the sale of its 50% ownership interest in the King of Prussia retail centre;

• In the construction business, the Group has seen some signs of a market recovery, however conditions are uneven. Earnings in the construction business in New York in the current period have been impacted by additional provisions of A$21 million after tax related to the investigation by the US Attorney for the Eastern District of New York into historical billing practices and past irregularities in the use of minority owned enterprises. The investigation is drawing to a close and we expect to resolve these issues in the near term; and

• The infrastructure development business was appointed to implement the third and final US$200 million phase of the US Department of the Army’s Privatization of Army Lodgings program and received approval for a US$168 million modification to the development scope at its Island Palm Communities project in Hawaii.

Lend Lease Corporation Limited ABN 32 000 226 228 and

Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

Level 4, 30 The Bond 30 Hickson Road Millers Point NSW 2000 Australia

Telephone +61 2 9236 6111 Facsimile +61 2 9252 2192 www.lendlease.com

3

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Update on Barangaroo South

The NSW Government has conducted a review of Barangaroo South and has given its support to the project. Planning approvals for the basement and first commercial tower have been granted and construction work on the shared basement for the three commercial towers is underway.

We are currently in detailed discussions with capital partners for the funding and development of the commercial towers, retail areas and other commercial buildings at Barangaroo South. The investors are engaged in exclusive due diligence before entering into binding commitments. Lend Lease is progressing well on lease terms with prospective tenants.

Group Financials

The Group is in a strong liquidity position with cash reserves of A$1,251.2 million and undrawn committed bank facilities of A$1,205.3 million. The average maturity of the Group’s drawn debt facilities is 5.1 years and the Group’s interest coverage of 6.5 times (operating EBITDA plus interest income divided by interest costs, including capitalised finance costs) significantly exceeds the Group’s targets.

Group Chief Financial Officer, Tony Lombardo, stated that despite global uncertainty in financial markets, the Group is in a position of financial strength with over A$2.4 billion of available liquidity, low gearing of 3.4% (net debt to total tangible assets, less cash) and an investment grade credit rating with both Standard & Poors (BBB-) and Moody’s (Baa3) with a stable outlook from both agencies.

“During the first half of the 2012 financial year, the Group invested in its strong pipeline of opportunities. Continued investment will see gearing increase over the medium term but remains within our target. Lend Lease has built a solid platform for growth over the past few years and despite uncertainty and volatility in global markets, is tracking well against its financial targets”, said Mr Lombardo.

Lend Lease Corporation Limited ABN 32 000 226 228 and

Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

Level 4, 30 The Bond 30 Hickson Road Millers Point NSW 2000 Australia

Telephone +61 2 9236 6111 Facsimile +61 2 9252 2192 www.lendlease.com

4

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Outlook

Commenting on the outlook for Lend Lease, Group CEO and Managing Director, Steve McCann said earnings in the 2012 year are expected to see continued accretion from the infrastructure business. However, Lend Lease remains cautious about the medium term outlook given the uncertainty in global markets resulting from the continuing Eurozone issues and the potential impact on availability of funding and project timings.

“In Australia, the engineering construction market remains attractive and Lend Lease has a strong internal pipeline which will help offset the low levels of activity in the non-residential building sector. Consumer sentiment continues to negatively impact the residential market in Australia with lengthening of time between enquiry and conversion.

“The Asian region has strong fundamentals and a positive outlook in the region’s project management and construction business. In the Americas, there are some signs that the US economy is starting to improve but conditions are uneven.

“The UK business remains well placed with its major urban regeneration projects expected to contribute to future earnings as the market recovers.

“The Group’s significant backlog, development pipeline and access to capital provide a strong platform for future earnings. We will continue to focus on the successful delivery and execution of our pipeline, drive operational excellence and focus on portfolio management”, said Mr McCann.

ENDS

For further information, please contact:

Investor Relations:

Sally Cameron Group Executive - Investor Relations Tel: 02 9236 6464

Corporate Affairs:

Iwona Polski Media & External Communications Manager Tel: 02 9237 5034

Lend Lease Corporation Limited ABN 32 000 226 228 and

Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

Level 4, 30 The Bond 30 Hickson Road Millers Point NSW 2000 Australia

Telephone +61 2 9236 6111 Facsimile +61 2 9252 2192 www.lendlease.com

5

Half Year Results 20 February 2012

Important notice

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This presentation has been prepared in good faith, but no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation (any of which may change without notice). To the maximum extent permitted by law, Lend Lease Corporation Limited, its related entities and their respective directors, officers, employees and agents disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence) for any direct or indirect loss or damage which may be suffered through use or reliance on anything contained in or omitted from this presentation.

Each recipient should consult with, and rely solely upon, their own legal, tax, business and/or financial advisors in connection with any decision made in connection with the information contained in this presentation.

Lend Lease Corporation Limited does not undertake any obligation to provide recipients with further information to update this presentation or to correct any inaccuracies.

Prospective financial information has been based on current expectations about future events and is, however, subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations described in such prospective financial information.

A reference to 2012 refers to the 2012 financial year unless otherwise stated.

Cover Image: Darling Quarter, Sydney, Australia

2

Presentation outline

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1. Results highlights 2. Operational update 3. Financial overview 4. Strategy & outlook 5. Appendices

Image: Waterbank, Perth, Western Australia

Safety commitment

• Our vision is to be Incident & Injury Free

• Progress made during the period includes:

• Critical incident frequency rate trending down compared to prior year comparative period

• Infrastructure integration:

  • Strong existing safety culture

  • Now integrated into Lend Lease standards

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4

Results highlights

Solid profit result in difficult market environment

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Dec 2011 A$m Dec 2010 A$m % change	Dec 2011 A$m Dec 2010 A$m % change
Revenue 5,817.7 4,366.7 33.2
EBITDA from operating businesses	411.4 350.3 17.4
EBITDA margin of operating businesses (%) 7.1 8.1 (12.4)
Statutory profit after tax1 217.8 226.5 (3.8)
Operating profit after tax2 220.8 220.2 0.3
Earnings per security3(cents) 38.6 38.9 (0.8)
Distribution per security4(cents) 16.0 20.0 (20.0)
Return on equity5(%) 11.8 13.4 (11.9)

1. Statutory profit after tax calculated in accordance with Australian Accounting Standards

2. Refer to slide 33 in the Appendices for a reconciliation between operating profit after tax and statutory profit after tax. Operating profit after tax excludes property investment revaluations of A$3.0m loss after tax (31 December 2010: $6.3m gain after tax) . The Group’s statutory results are prepared in accordance with International Financial Reporting Standards (IFRS). The operating results are non-IFRS measures which are used by the Group to measure and assess performance and make decisions on the allocation of resources.

3. Based on operating profit after tax and weighted average number of securities on issue including treasury securities

4. The interim distribution is unfranked and represents a payout ratio of 41% of operating profit after tax for the half year ended 31 December 2011

5. Return on equity is calculated as the half year statutory profit after tax divided by the weighted average equity for the period, multiplied by 50%. This approximates an annual return on equity

6

Highlights and strategic progress

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• Infrastructure integration progressing and on track to deliver target earnings accretion[1 ]

• Diversified portfolio drives strong performance in uncertain global markets

• Strong operating cashflow

• Achieved milestones on major projects

• Secured new opportunities to deliver earnings over the medium term

• Construction backlog revenue growth since 30 June 2011 of 5.9% to A$16.2b

• Preferred on circa A$1b Waterbank development project in Perth

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Queensland University Hospital, QLD

1. As at the time of the announcement of the infrastructure acquisition in December 2010

7

Core profitability drivers continue to rise

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	Dec 2011	June 2011	change	% change
Construction backlog revenue (A$b)	16.2	15.3		5.9
Funds under management (A$b)	11.8	10.9		8.3
Retail assets under management (A$b)	9.9	9.5		4.2
Backlog of residential units (zoned and unzoned, land and built-form)	92,030	92,432		(0.4)
Development value of urban regeneration projects (A$b)1	27.0	25.0		8.0
Infrastructure development (units under management – operational and preferred)	57,695	49,715		16.1

1. Reflects 100% of the project end development value

8

Operational update

Earnings split by geography[1]

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31 December 2011

31 December 2010

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----- Start of picture text -----

Americas
6% Americas
10%
Europe
14%
Asia
10% Europe
34% Australia
50%
Australia
70%
Asia
6%
----- End of picture text -----

1. Based on operating profit after tax from operating businesses

10

Earnings split by business unit[1]

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31 December 2011

31 December 2010

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----- Start of picture text -----

Development
Investment
Investment 30%
Development Management Management
23% 24% 22%
Infrastructure
Infrastructure
Development
12% Development [2]
22%
Construction Construction [2]
41% 26%
----- End of picture text -----

1. Based on operating profit after tax from operating businesses

2. The construction segment for 31 December 2010 has been restated to reflect the transfer of the construction activities of the infrastructure development business in the Americas to the project management and construction segment from 1 July 2011

11

Australian business update

Construction.		 Backlog revenue of A$9.9b, up 15% on FY2011  Infrastructure business delivering results in line with expectations
Development		 Milestones achieved on major projects; secured new projects, preferred on Waterbank  Residential land settlements down 28% however 15% increase in pre-sales which will settle in future periods  Strong Aged Care operational performance and Retirement Living contract standardisation process progressed  Retail-focus on development pipeline
Investment Management		 Continued strong performance of existing funds  Launched Lend Lease Real Estate Partners NZ Fund and sold four retail centres to this fund  APPF acquired remaining 50% interest in Cairns Central  FUM increased by10% to A$8.5b
Infrastructure Development		 Sold SA New Schools PPP equity for A$21.6m  Financial close on Queen Elizabeth II Medical Centre Car Park project in Perth

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	Dec	Dec
Operating Profit	2011	2010
after Tax	A$m	A$m
Construction	105.4	43.5
Development	66.9	79.8
Investment Management	27.0	17.2
Infrastructure Development	7.8	(3.8)
Total	207.1	136.7

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Darling Quarter, Sydney

12

Australian construction business update

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 Operating profit after tax of A$105.4m  Key projects contributing to earnings: Gold Coast University Hospital; New Royal Children’s Hospital, Melbourne; Result for Ipswich Motorway upgrade in construction Queensland; and the Hunter Expressway segment[1 ] in NSW  Large, long-dated projects from internal development pipeline in addition to secured backlog  On track to deliver earnings accretion Progress on announced at the time of the acquisition [2] Infrastructure business  Strategy is for growth in areas of specialisation

	Dec	Dec
Construction	2011	2010
Key Metrics (A$m)	A$m	A$m
Operating Profit after Tax	105.4	43.5
Gross Profit Margin	286.4	97.9
New Work Secured Revenue	5,057.2	750.3
Backlog Revenue	9,923.1	8,615.03

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Convesso, Victoria Harbour, VIC

1. Includes contribution from infrastructure business

2. As at the time of the announcement of the infrastructure acquisition in December 2010

3. As at 30 June 2011

13

Australian construction market update

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Engineering construction

Building

construction

• Forecast average market growth of 7.3%pa from 2011-2016[1]

• New work secured of over A$1.2b in six months ended 31 December 2011

• Growth to be primarily generated from engineering construction sector

 Positioned for growth in resources associated infrastructure such as rail and marine / ports

• Forecast average market growth of 1.4%pa over next five years[2]

• Office construction forecast to be strongest performer over next five years with growth of 12%pa[2]

• Internal pipeline will continue to be a key contributor to backlog revenue

		Dec 2011 Construction
	Key Projects	Value A$m
	Gold Coast University Hospital	1,227
	The New Royal Children’s Hospital Barangaroo South Origin Alliance Queensland Children’s Hospital	1,080 985 908 885
	Peninsula Link	655

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Queensland Children’s Hospital, Brisbane

1. Based on BIS Shrapnel, Engineering Construction in Australia preliminary forecasts for 2011/12 to 2025/26, February 2012 2. Lend Lease Research based on a range of external sources

14

Australian development business update

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Communities Apartments Retail Outlook	 Markets affected by weak consumer sentiment  Lower trading volumes due to market conditions, a number of projects nearing completion and planning delays  First half settlements impacted by timing of project completions, however higher pre-sales  Strong offshore interest in capital city markets  Continued focus on development pipeline – Joondalup, Craigieburn Town Centre  Eight communities projects to commence trading in the next 12 months  Close to 100% of residential land backlog zoned  Difficult trading conditions to continue in the short term with longer conversion rates  Portfolio diversification will soften the impact of weak market conditions in certain areas
	 Markets affected by weak consumer sentiment  Lower trading volumes due to market conditions, a number of projects nearing completion and planning delays
		Development Key Metrics Dec 2011 Dec 2010
		Operating Profit After Tax (A$m) 66.9 79.8
		Residential Settlements (units) 822 1,254
	 First half settlements impacted by timing of project completions, however higher pre-sales  Strong offshore interest in capital city markets
		Residential Pre-sales (units) 2,335 1,870
		Backlog – Residential (units) 72,735 73,580
	 Continued focus on development pipeline – Joondalup, Craigieburn Town Centre
	 Eight communities projects to commence trading in the next 12 months  Close to 100% of residential land backlog zoned  Difficult trading conditions to continue in the short term with longer conversion rates  Portfolio diversification will soften the impact of weak market conditions in certain areas
		Waterbank Perth Western Australia

15

Well progressed on planning and delivery at Barangaroo South, Sydney

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• The NSW Government confirmed its support for Barangaroo South following its review of the project

• Planning consent granted for first commercial tower

• Planning applications lodged for second and third commercial towers

• Work progressing on the construction of shared basement for three towers

• In discussions with Government on hotel location

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Barangaroo South, Sydney

16

Continued momentum on leasing and funding at Barangaroo South, Sydney

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• Independent research supports demand for sustainable buildings particularly for floor plates >2000sqm ~

• ( 5% vacancy)

• Discussions with potential capital partners and potential tenants supports the high level of demand

• Lend Lease is in advanced negotiations with several tenants and in the advanced stages of exclusive due diligence with investors

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Barangaroo South, Sydney

17

Asia business update

• Continued strong market fundamentals

• New work secured revenue of A$312.6m including increased telecommunications rollout work in Japan

Construction

• Setia City Mall on track for delivery in Q2, FY 2012

• Jem™ mixed-use integrated development in Singapore progressing well and a key contributor to earnings

Development

• Increased development fees on retail assets

• 313@somerset valuation stable

Investment Management

• Deferred proceeds and completion adjustments on sale of PoMo mixed-use asset recognised

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	Dec	Dec
Operating Profit	2011	2010
after Tax	A$m	A$m
Construction	11.7	10.7
Development	3.8	(0.2)
Investment Management	13.3	5.3
Total	28.8	15.8

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Jem™, Singapore

18

EMEA business update

• Athletes’ Village buildings all handed over to LOCOG

Construction

• Market conditions remain challenging

• Elephant & Castle – planning application expected to be submitted in 2012

Development

• Secured planning approval for the master plan of The International Quarter, Stratford City

• Sold 75% interest in Chelmsford Meadows Unit Trust for net proceeds of £42m

Investment Management

• Glow Bluewater events venue opened in November 2011

• Sold equity in a further three PPP assets to the Lend Lease UK Infrastructure Fund (UKIF) for proceeds of £30m

Infrastructure Development

• UKIF has undrawn capacity of £115.6m

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	Dec	Dec
Operating Profit	2011	2010
after Tax	A$m	A$m
Construction	6.9	4.4
Development	(2.0)	4.8
Investment Management	18.7	27.1
Infrastructure Development	19.4	58.3
Total	43.0	94.6

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Glow Bluewater Events Centre, UK

19

Americas business update

• New work secured of circa US$1b resulted in backlog revenue doubling over last 12 months

• Earnings impacted by additional provisions of A$21 million after tax due to NY investigation

Construction

• Includes construction component of infrastructure development business

• Development Preferred developer on five projects with a - healthcare combined value in excess of US$100m

• Proceeds of over US$500m received from sale of King of Prussia

Investment Management

• Project wins - US$200m third phase of the Privatization of Army Lodgings program and US$168m additional development scope at Island Palm Communities

Infrastructure Development

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	Dec	Dec
Operating Profit	2011	2010
after Tax	A$m	A$m
Construction	(1.3)	11.7
Development	(0.6)	(0.5)
Investment Management	11.5	12.4
Infrastructure Development	8.5	5.3
Total	18.1	28.9

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Privatization of Army Lodgings program

20

Financial overview

Strong operating performance

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	December 2011	December 2010
Income statement	A$m	A$m
Total Operating Businesses	297.0	276.0
Group Services	(35.8)	(36.0)
Group Treasury	(39.2)	(18.3)
Group Amortisation	(1.2)	(1.5)
Operating Profit after Tax	220.8	220.2
Property Investment Revaluations	(3.0)	6.3
Statutory Profit after Tax	217.8	226.5
Effective Tax Rate on Operating Profit	22%	18%
Statement of cash flows
Operating cash inflow/(outflow)	208.1	(119.2)

22

Strong funding position

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----- Start of picture text -----

A$m
3,000
2,500
2,000
1,205.3
1,500 459.8 (471.9)
9.0
2,456.5
208.1
1,000
1,251.2
500 1,046.2
0
Opening cash 1 Operating cash Investing cash flow Financing cash FX impact Closing cash 31 Undrawn facilities Closing cash and
July 2011 flow flow Dec 2011 undrawn facilities
31 Dec 2011
----- End of picture text -----

23

Key debt metrics

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	December 2011	June 2011
Credit Rating - S&P/Moody’s	BBB- / Baa3	BBB- / Baa3
	(Stable)	(Stable)
Net debt1(A$m)	314.4	875.4
Gearing (%)2	3.4	8.9
Cash (A$m)	1,251.2	1,046.2
Undrawn facilities (A$m)	1,205.3	815.7
Weighted average debt maturity3	5.1 years	5.0 years
Weighted average cost of debt3	6.3%	6.1%
Fixed / floating debt3	77%/ 23%	51% / 49%
Interest coverage4	6.5x	6.7x

1. Net debt is borrowings including certain other financial liabilities, less cash

2. Gearing is calculated as net debt, divided by total tangible assets less cash

3. Weighted average maturity relates to drawn debt including certain other financial liabilities

4. Calculated as operating EBITDA plus interest income divided by interest finance costs, including capitalised finance costs. Refer to slide 33 in the Appendices for a reconciliation between statutory EBITDA and operating EBITDA

24

No major short term refinancing

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A$m

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----- Start of picture text -----

800
700
Bluewater
lease
600
500
New A$
400 syndicate
undrawn
300 UK RCF USPP
New A$
undrawn
syndicate
undrawn UK Bond
200
New A$ A$ Term
100 syndicate Loan
New A$
USPPP syndicate
USPPP
0
FY13 FY14 FY15 FY16 FY17 FY18 FY22
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25

Key financial targets – tracking well

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Metric Target December 2011

Return on Equity [1] Greater than 15% per annum 11.8%

Committed to investment grade BBB- / Baa3
Credit Rating
credit rating (Stable)

Gearing [2 ] <20% 3.4%

Interest Coverage Ratio >5x 6.5x

Annuity Income >15% of operating EBITDA 16.1%

Distribution Payout 40% to 60% of Operating Profit
41%
Ratio after Tax
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1. Return on equity is calculated as the half year statutory profit after tax divided by the weighted average equity for the period multiplied by 50%. This approximates an annual return on equity

2. Gearing is calculated as net debt, divided by total tangible assets less cash

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Strategy & Outlook

Key strategic deliverables – 12 to 24 months

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Achievements first half 2012

BUILD

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
Reshape portfolio

Growth platforms

Operational
excellence

Invest in people
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Major Development Projects

Infrastructure

Business Transformation

Portfolio Reallocation

UK and US market recovery

• A$237m investment in major projects

• Barangaroo South and RNA commenced

• Infrastructure backlog revenue of A$6.8b as at 31 December 2011

• Reporting into Australian region from 1 February 2012

• Progress on process, technology & people initiatives

• Proceeds from asset sales of over A$780m (including King of Prussia sale) used to fund development pipeline and repay debt

• Higher profitability in the UK construction business

• Asset sales in UK to release capital for urban regeneration projects

• Americas – integration of Lend Lease DASCO and further wins in infrastructure development business

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External outlook uncertain

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Australia

• Infrastructure sector remains attractive

• Non-residential building activity remains low but Lend Lease has strong internal development pipeline

• Cautious residential outlook given weak consumer sentiment

• Focus on delivery of secured pipeline and integration of acquired infrastructure business

Asia

• Strong fundamentals

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The Green, Showground Hill, Brisbane

• Focus on delivery of retail in Singapore

• Develop market leading positions in pharmaceutical and telecommunications construction

Americas

• Early signs of recovery but uneven market conditions

• EMEA

• Focus on delivery of major projects in UK

• Position construction business into market recovery

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Athletes’ Village, London

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Outlook – Cautious given global uncertainty

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Earnings outlook

• FY2012 earnings will see benefit of infrastructure accretion

• Well positioned in construction growth sectors in Australia

• Achieving key project milestones will drive earnings growth

• Eurozone issues creating uncertainty regarding short term outlook

Significant backlog, development pipeline and access to capital

• Capital requirements supported by third party equity

• Focus on portfolio management

• Emphasis on quality and consistency of execution

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Adelaide Oval Redevelopment, SA

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Half Year Results 20 February 2012