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20 February 2020
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Lendlease Group 2020 Half Year Results Announcement, Presentation and Appendix

Lendlease Group today announced its results for the half year ended 31 December 2019. Attached is the HY20 Results Announcement, Presentation and Appendix.

ENDS

For further information, please contact:

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

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

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Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia

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

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19 August 201920 February 202022 August 2018
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Development pipeline increases to $112b, underpins long term growth

For the half year ended 31 December 2019:

Group profit after tax of $313 million, earnings per stapled security of 55.5 cents:
Core profit after tax of $308 million and earnings per stapled security of 54.6 cents
Non core profit after tax of $5 million
Interim distribution of 30 cents per stapled security
Return on Equity[1] of 9.8 per cent

Key highlights:

Secured two major urbanisation projects in London and San Francisco Bay Area
Urbanisation pipeline of $98 billion including 21 major projects in nine global gateway cities
Launch of One Sydney Harbour, Barangaroo - $1.4 billion of apartment presales
Lendlease Global Commercial REIT listed in Singapore
Development pipeline of $112 billion, up 51 per cent on the prior corresponding period
Funds Under Management (FUM) of $37 billion, up 8 per cent on the prior corresponding period
Sale of Engineering business to Acciona agreed for $180 million
Sale process continues for Services business
Developed and published four climate scenarios in line with TCFD[2] recommendations
Global number one ranked fund in GRESB[3] with four funds ranked in the global top 10

HY20 Key Highlights

Group Chief Executive Officer and Managing Director, Steve McCann, said Lendlease made significant progress on its cornerstone strategy of creating the best places in key global gateway cities.

“The Group grew its urbanisation pipeline significantly, completed another world class urban precinct and progressed the sale of the Engineering business. These and other initiatives have strengthened our business and position the Group for long term growth.

“Our ability to deliver transformational urban precincts with a focus on environmental, social and financial outcomes is recognised globally. Continued origination success during the period has driven our urbanisation pipeline to almost $100 billion within a total development pipeline of $112 billion,” said Mr McCann.

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

2 Taskforce for Climate-related Financial Disclosure.

3 2019 Global Real Estate Sustainability Benchmark.

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Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia

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

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19 August 201920 February 202022 August 2018
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The Group added two new major urbanisation projects to its portfolio – Thamesmead Waterfront in London and a partnership with Google in the San Francisco Bay Area. These residential led projects have a combined estimated end development value of more than $36 billion.

The retail and residential components of Singapore’s newest lifestyle precinct, Paya Lebar Quarter, completed in the period. This marks the culmination of a four-year development which has delivered approximately $4 billion of product including three office towers, a retail mall and more than 400 apartments.

“The endorsement of our capability is the success and vibrancy of our completed precincts such as Paya Lebar Quarter in Singapore where we have created a world class destination for people to live, work and visit, while exceeding our financial and non financial performance targets” Mr McCann said.

The Group published four climate scenarios in line with the Taskforce for Climate-related Financial Disclosure (TCFD) recommendations and is the only company in the real estate sector participating in the TCFD Secretariat’s Advisory Group for Scenario Planning.

“We are proud of our history of integrating environmental and social considerations into our business decisions. Today this approach is more important than ever, as we commit to addressing climate change across our operations,” Mr McCann said.

Delivery commenced on several developments including residential apartments for sale at One Sydney Harbour, Barangaroo where presales have reached $1.4 billion. Lakeshore East in Chicago was also launched with a combination of apartments for sale and rent. The total number of apartments for rent in delivery globally is now more than 1,700.

“The ongoing conversion of our pipeline will see us provide our capital partners with access to high quality assets and development opportunities. This integrated approach is our key competitive advantage and provides a point of difference we believe few can match,” Mr McCann said.

Funds under management grew by eight per cent[4] to $37 billion, including the $1.5 billion listing of the Lendlease Global Commercial REIT in Singapore.

The Construction segment delivered a solid performance in line with target returns, with $4.3 billion of construction work completed. Activity was diversified by sector, client and geography with completed projects including the Gosford Hospital Redevelopment, the redevelopment of Rod Laver Arena and Paya Lebar Quarter.

In December 2019, Lendlease entered into an agreement with Acciona Infrastructure Asia Pacific (Acciona) to sell the Engineering business for a purchase price of $180 million.

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4 Comparative period, half year ended 31 December 2018.

Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia

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

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“The sale of the Engineering business is an important milestone that provides a clear pathway for our people, partners, clients and securityholders. It will allow the Group to focus on its core competitive advantages, with our aim of being the global urbanisation partner of choice,” Mr McCann said.

Under the terms of the agreement, subject to the completion of conditions precedent, Acciona will acquire the Engineering business excluding the NorthConnex and Kingsford Smith Drive projects, which are in final stages and will be completed by Lendlease. The Melbourne Metro Tunnel Project is also currently excluded, with the project consortium working with Government on a confidential basis to resolve issues in relation to the scope and costs on the project.

The Services business continues to perform well. During the period it secured $1.1 billion of new work including telecommunications contracts and a multi year contract with Sydney Water. Services closed the period with a backlog of $2.2 billion and an attractive pipeline of future opportunities. The sale process for the Services business continues.

HY20 Group Financials

The Group delivered a solid result in the half year and remains in a strong financial position.

Core business profit after tax of $308 million generated a return on equity of 9.6 per cent.

Group Chief Financial Officer, Tarun Gupta said: “Our key focus remains on driving securityholder value through delivery of our growing pipeline of development projects. Maintaining a robust financial position and strong capital partner relationships will be paramount for this investment phase.”

The Group’s gearing was 14.7[5] per cent, the mid point of the 10-20 per cent target range and it is expected to be between 15-20 per cent at the end of FY20.

“Looking ahead, there are near term commercial and residential conversion opportunities across our major urbanisation projects, several of which are expected to contribute to earnings in the second half of the financial year.”

The Development segment ROIC of 7.3 per cent reflected the completion of the retail precinct at Paya Lebar Quarter and the establishment of the Victoria Cross Over Station Development joint venture, offset by softness in the Australian Communities business. Development earnings are expected to be skewed to the second half of the financial year driven by both commercial and residential activity across our major urbanisation projects.

The construction margin of 2.3 per cent was generated on $4.3 billion of revenue.

5 Includes $701 million of cash and cash equivalents for the Non core segment which has been classified as Assets Held for Sale.

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

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Investments ROIC of 10.7 per cent reflected strong fee income driven by growth in funds under management and the performance fee for the successful completion of Paya Lebar Quarter.

“We are shifting invested capital to our international regions and expect this to be increasingly reflected in the contribution from these regions,” Mr Gupta said.

Non core segment Financials

The Non core segment, comprising Engineering and Services, generated EBITDA of $23 million and profit after tax of $5 million. These businesses have been reported as discontinued operations in HY20 based on the status of the sale process for each business.

The loss on exiting the Engineering business will reflect a combination of exit costs and proceeds from sale relative to the carrying value of the business on completion of the transaction. It is anticipated that this will be accounted for in FY20 following the expected completion of the transaction.

The previously disclosed cost estimate to exit the Non core segment of $450 - $550 million pre tax remains appropriate with $22 million expensed to date. Exit related costs[6] include:

Implementation and selling costs;
Indemnities included in any sale agreement; and
Potential costs to cover concluding projects retained by the Group.

This cost estimate, together with existing provisions, is considered appropriate to cover concluding retained projects and to exit the Non core segment.

The impact on cash flow from the sale of Engineering will comprise $180 million in proceeds from the sale ($60 million in FY20 and $120 million in FY21), less implementation and selling costs, and adjustments for the final balance sheet including working capital which will be determined on completion of the transaction. The cash flow impact of the remaining exit costs is expected to be incurred over several years.

Outlook

The near term outlook for the core business is supported by the expected conversion of both commercial and residential development opportunities across our major urbanisation projects.

The Group’s ability to partner with public and private sector clients to secure long dated projects provides substantial earnings visibility over the medium to long term.

“Our core segments are well placed for medium term success. The development pipeline has increased significantly to $112 billion with a growing number of major urbanisation projects in our

6 Previously referred to as restructuring cost estimate.

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

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international gateway cities across the US and Europe in particular,” Mr McCann said. Construction backlog revenue for the core business is $14 billion. Beyond the current backlog, there is approximately $10 billion of work which the Group is in a preferred position on, across both external and integrated projects.

The Investments segment is well placed to continue to deliver a solid base of recurring earnings derived from the $4 billion of investments, $37 billion in FUM and $30 billion of assets under management.

“Our urbanisation pipeline is expected to create more than $50 billion of institutional grade assets for our capital partners and the Group’s investments platform. We are well placed to double our current $37 billion of FUM as this pipeline is delivered,” Mr McCann said.

Further information regarding Lendlease’s results is set out in the Group’s financial results presentation for the half year ended 31 December 2019 and is available on www.lendlease.com.

ENDS

FOR FURTHER INFORMATION, PLEASE CONTACT:

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

2020 Key Dates for Investors
HY20 results released to market/interim distribution declared	20 February
Securities quoted ex-distribution on the Australian Securities Exchange	27 February
Interim distribution record date	28 February
Interim distribution payable	17 March
FY20 results released to market/final distribution declared	17 August
Annual General Meetings	20 November

Authorised for lodgement by the Lendlease Group Disclosure Committee

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Level 14, Tower Three, International Towers Sydney Exchange Place, 300 Barangaroo Avenue Barangaroo NSW 2000 Australia

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

2020 Half Year Results 20 February 2020

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Paya Lebar Quarter, Singapore

Lendlease HY20 Financial Results / 2

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

Lendlease HY20 Financial Results / 3

Artist’s impression: Salesforce Tower, Sydney Place

Group Performance

Steve McCann Group Chief Executive Officer and Managing Director

Lendlease HY20 Financial Results / 4

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Safety
1. Calculated on a rolling 12 month basis.
2. Calculated to provide a rate of instances per
1,000,000 hours worked.
3. Comparative period the half year ended 31
December 2018.
4. A Critical Incident is an event that caused, or
had the potential to cause, death or permanent
disability. This is an indicator unique to
Lendlease.
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Fatality

Lendlease is saddened to report a fatality occurred following an incident on our operations during HY20
We express our sincere condolences to family, friends and colleagues
We remain committed to the safety of our people and continuously strive to do our best so that every person who visits a Lendlease operation returns home safely

Key metrics

Improved metrics following further enhancements to safety standards:
Group Lost Time Injury Frequency Rate[1,2] 1.3 down from 1.9[3]
Operations without a Critical Incident[4] 94% up from 93%[3]

Lendlease HY20 Financial Results / 5

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Our
approach
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Lendlease HY20 Financial Results / 6

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Environmental
Social and
Governance
1. 7% of participating companies in 2019
achieved a AAA rating.
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HY20 key achievements

Task Force for Climate-related Financial Disclosure (TCFD) progress:
Four climate scenarios developed and published
Top 200 leaders engaged in climate related risks and opportunities workshops
Net Zero Carbon achievements and progress:
Barangaroo South named Australia’s first carbon neutral precinct
Australian Construction business net zero carbon in FY19
Commitments for >$12 billion of managed assets to be net zero carbon by 2025
Shared value external partnerships through Lendlease Foundation:
Red Cross: place-based community development
OzHarvest Nourish Program: providing pathways to employment and further education
MATES in Construction: suicide prevention
2019 Global Real Estate Sustainability Benchmark (GRESB) leadership:
Number one ranked fund globally out of 964 participants – APPF Commercial
Four Lendlease managed funds ranked in global top 10
Lendlease received AAA ESG rating from MSCI[1]
New Board appointments – additional property and construction expertise:
Baroness Margaret Ford OBE (UK)
Robert Welanetz (US)

Lendlease Sustainability Framework

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Lendlease HY20 Financial Results / 7

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Non core
segment
update
1. $22m expensed to date.
2. Previously referred to as restructuring cost
estimate.
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Engineering and Services: Progress on exit

Non core segment reported as a discontinued operation in HY20 financial statements
Sale of Engineering business to Acciona for $180m:
Expected to complete H2 FY20, subject to conditions
Excludes NorthConnex and Kingsford Smith Drive – projects to be completed by Lendlease:
- Both > 90% complete, expected completion CY20
Currently excludes Melbourne Metro Tunnel Project:

o Consortium working with Government on a confidential basis to resolve issues in relation to scope and costs

Loss on exiting Engineering, including exit related costs, to be accounted for following completion of the sale
Sale process for the Services business continues
Cost estimate to exit the Non core segment of $450m - $550m[1] pre tax remains appropriate. Exit related costs[2] include:
−Implementation and selling costs;
−Indemnities included in any sale agreement; and
−Potential costs to cover concluding projects retained by the Group
Exit cost estimate, together with existing provisions, appropriate to cover concluding retained projects and exit the Non core segment

HY20 Performance

HY20 EBITDA of $23m:
−Includes $7m of exit costs
Engineering EBITDA break even:
−Gross profit offset by overheads and exit costs
−New work secured $0.9b
Services business performing strongly:
−New work secured of $1.1b and backlog of $2.2b with solid outlook for future pipeline

Lendlease HY20 Financial Results / 8

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HY20
result
1. Comparative period the half year ended 31
December 2018.
2. Return on Equity is calculated using the
annualised Profit after Tax divided by the
arithmetic average of beginning and half year
end securityholders’ equity.
3. Net debt to total tangible assets, less cash.
4. Includes $701m of cash and cash equivalents
for the Non core segment which have been
classified as Assets Held for Sale.
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Securityholder returns[1]

Group profit after tax of $313m, earnings per stapled security of 55.5 cents, return on equity of 9.8%[2]
Core profit after tax of $308m, earnings per stapled security of 54.6 cents, return on equity of 9.6%[2]
Non core profit after tax of $5m
Interim distribution of 30 cents per security

Performance highlights

Focus on the core strategy of urbanisation:
Significant growth in the urbanisation pipeline along with capital partner initiatives
Completion of a world class urban precinct: Paya Lebar Quarter
Investing in platform and capability to deliver extensive pipeline
Exit of Engineering business well progressed
Development ROIC: 7.3%, below the 10 – 13% target range:
Expected skew to H2 FY20
Construction EBITDA margin: 2.3%, within 2 – 3% target range
Continues to generate stable returns with leadership positions in target sectors and markets
Investments ROIC: 10.7%, top end of the 8 – 11% target range:
Platform continues to grow, providing a solid base of recurring income for the Group
Strong financial position: gearing of 14.7%[3,4] , and liquidity of $3.1b[4]

Lendlease HY20 Financial Results / 9

Development pipeline increases to $112b, underpins long term growth

Executing on our strategy

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San Francisco Bay Area project [3] Thamesmead, London
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Development pipeline $112b up from $74.5b[1]
c.$36b of urbanisation projects secured:
Thamesmead Waterfront, London: $14.8b[2]
San Francisco Bay Area project: $21.5b[2]
Apartment commencements in two cities:
Sydney: Barangaroo South: One Sydney Harbour – first of three towers o $1.4b in presales
Chicago: Lakeshore East: 853 units across two buildings - for sale and for rent

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Victoria Cross Over Station
Paya Lebar Quarter, Singapore
Development, Sydney [3]
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Third party capital initiatives:
Development JV formed to deliver Victoria Cross Over Station Development, Sydney: o $1.2b[2] office tower
Launched Lendlease Global Commercial REIT in Singapore – $1.5b FUM
Development JV completed retail and residential at Paya Lebar Quarter, Singapore:
- Entire precinct now complete – c.$4b of product delivered above target returns

1. Comparative period the half year ended 31 December 2018. 2. Estimated development end value. 3. Artist’s impression (image subject to change and further design development and planning approval).

Lendlease HY20 Financial Results / 10

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Urbanisation
pipeline to
drive future
growth
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Urbanisation pipeline ($b)

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97.9
~4x
25.0
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FY14
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HY20

HY20 urbanisation pipeline

Residential for sale >$50b investment grade assets Residential for rent anticipated to be created from pipeline

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Commercial
More than 50
30%
buildings
45%
$97.9b
25%
19,365 units for rent
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37,450
units for sale
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Urbanisation production rate expected to accelerate

Production has averaged ~$4b p.a. in recent years
Pipeline implies ~25 years of supply at current production rate
Significant opportunity to accelerate production activity materially over the medium term
Preparing for next phase of investment for growth:
−Significant investment made in delivery platform and capability
−Focus on maintaining and growing capital partner relationships

Funds Under Management ($b)

Opportunity to double FUM again as pipeline converts

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36.9
>2x
16.3
FY14 HY20
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Lendlease HY20 Financial Results / 11

Artist’s impression: Victoria Cross Over Station Development, Sydney

Financial Performance

Tarun Gupta Group Chief Financial Officer

Lendlease HY20 Financial Results / 12

Financial performance

$m	HY19	HY20	Change
Core
Development	261	272	4%
Construction	111	101	(9%)
Investments	273	255	(7%)
Operating EBITDA	645	628	(3%)
Corporate costs1	(88)	(72)	18%
Group EBITDA	557	556	-
Depreciation and amortisation	(50)	(77)	(54%)
EBIT	507	479	(6%)
Net finance costs	(53)	(76)	(43%)
PBT	454	403	(11%)
Income tax expense	(99)	(95)	4%
PAT	355	308	(13%)
Non core
EBITDA	(474)	23	>100%
PAT	(339)	5	>100%
Total
PAT	16	313	>100%
Weighted avg. securities(#m)	571	564	(1%)
Earnings per Stapled Security (cents)	2.8	55.5	>100%

PLQ retail; Victoria Cross Over Station Development joint venture; apartment settlements
EBITDA margin 2.3%, up 0.2ppt from HY19; reclassification of integrated project earnings to Development
Strong fee income from higher FUM and PLQ performance fee; lower revaluations
Group services costs of $56m, up 6% like for like

Adoption of AASB 16 Leases:

Lower corporate costs ($23m)
Reclassification of operating lease expenses
Higher depreciation and amortisation
• Higher net finance costs
Increase due to higher average net debt
Includes $7m of exit costs

1. Corporate costs of $72m comprise Group Services costs of $56m and Group Treasury costs of $16m.

Lendlease HY20 Financial Results / 13

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Cash flow
1. Reconciliation on appendix slides 12 and 13.
2. Includes the impact of foreign exchange
movements on opening cash.
3. Underlying operating cash flow relative to
EBITDA.
4. Includes $701m of cash and cash equivalents
for the Non core segment which have been
classified as Assets Held for Sale at HY20.
5. Movement in development properties
inventory, less movement in deferred land
payments.
6. Reallocation reflects cash proceeds from sell
down of development entities and realised
gains on sale of assets not reflected in
operating cash flow.
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Cash flow movements

Cash conversion 5% in HY20

Low due to PLLACes maturity and timing of cash receipts

Operating and Investing inflows:

Development settlements net of PLLACes $0.4b
Sale of 313@somerset into Lendlease Global Commercial REIT $0.2b
Other urbanisation $0.7b

Operating and Investing outflows:

Development $1.3b
Establishment of the Lendlease Global Commercial REIT $0.3b
Other investments $0.2b

Underlying operating cash flow

Underlying operating cash flow of $4.2b from FY16 to HY20:

Statutory operating cash flow of $774m:
−$0.8b has been paid in interest and tax
−$1.4b of the Group’s operating cash flow has been reinvested into development inventories
−$1.2b cash realisation from the sell down of deconsolidated development entities and gains on sale of assets
Cash conversion of 84% FY16 – HY20:
−Includes cash conversion of 5% HY20 impacted by:
- Maturity of PLLACes instruments ($220m)
- Timing of receipts across Development and Investments segments

HY20 ($m)

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1,290 29 (125)
(503)
406 1,097
HY20 cash conversion 5% [3]
FY19 closing Underlying Interest and Underlying Net financing HY20 closing
cash operating tax paid investing and other cash 4
cash flow 1 cash flow1 adjustments 2
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FY16 – HY20 ($m)

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FY16 – HY20 cash conversion 84% [3]
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4,948
1,193 4,171
1,403
801
774
Operating Interest and Net Adjustment Underlying EBITDA
cash flow tax paid investment from investing operating
into cash flow 6 cash flow
development
inventory 5
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Lendlease HY20 Financial Results / 14

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Financial
position
1. Target range 10 – 20%.
2. Includes $701m of cash and cash equivalents
for the Non core segment which have been
classified as Assets held for sale.
3. Upon sale of the Engineering business, a
negative working capital balance for the
projects included in the sale agreement will
be transferred. As at 31 December, that
amount was approximately $425 million.
4. EBITDA plus interest income, divided by
interest finance costs, including capitalised
finance costs.
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Financial strength

Capital structure

Gearing 14.7%[1,2] , up from 9.9% in FY19, net debt $2.3b:
−Invested capital up $0.8b:
- $0.5b Development, $0.3b Investments
−Low underlying cash flow in H1
Investment grade credit ratings (no change in period):
−Moody’s: Baa3 negative outlook
−Fitch: BBB- stable
Discontinued operations[3] :
−$1.9b assets, $1.7b liabilities held for sale

Distribution policy

Payout 40 - 60% of earnings
Capital management discipline

Debt metrics

Interest cover[4] of 7.4 times
Average cost of debt 3.6%, maturity 3.9 years

Funding and liquidity

Balanced debt maturity profile, no material concentrations:
−No material debt maturities until FY22
Total liquidity of $3.1b[2] supports anticipated increase in development and investment activity:
−$1.1b[2] of cash

Invested capital: Development

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$5.3b Up $0.5b
Development
21
17
Major Other
Communities
urbanisation
projects
projects
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Invested capital: Investments

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$3.9b Up $0.3b
Investments
$1.9b $1.4b $0.6b
Co-investments Retirement Other
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Lendlease HY20 Financial Results / 15

Portfolio Management Framework

EBITDA mix

Invested capital

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41% 43%
$628m¹
16%
Development Construction Investments
(40 - 50%) (10 - 20%) (35 - 45%)
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By segment
42%
$9.2b²
58%
Development Investments
(40 - 60%) (40 - 60%)
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By region
15%
21% $9.4b² 48%
16%
Australia Asia Europe Americas
(50 - 70%) (5 - 20%) (5 - 20%) (5 - 20%)
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Returns

Development – ROIC[3,4]

Construction – EBITDA margin[5]

Investments – ROIC[3,4]

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13.6%
Target 10 - 13% 10.7%
7.5% 7.3% Target 2 - 3% Target 8 - 11%
2.1% 2.3%
HY19 HY20 HY19 HY20 HY19 HY20
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1. Core operating EBITDA. 2. Total invested capital at 31 December 2019 was $9.5b. Development and Investments totalled $9.2b, Construction and Non core $0.2b and Corporate $0.1b. 3. Return on Invested Capital (ROIC) is calculated using the annualised Profit after Tax divided by the arithmetic average of beginning and half year end invested capital. 4. Through-cycle target based on rolling three to five year timeline. 5. Core business only.

Lendlease HY20 Financial Results / 16

Core financial returns

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• Average Return on Equity FY16 – HY20: 13.0% [1]
Target
10 – 14%
Development segment Construction segment Investments segment
Average ROIC: FY16 – HY20 Average EBITDA margin: FY16 – HY20 Average ROIC: FY16 – HY20
11.5% 2.5% 12.0%
Target Target Target
10-13% 2-3% 8-11%
13.7% 13.4%
15.5%
11.7% 11.6% 3.1%
2.4% 2.6% 2.2% 2.3%
11.2% 11.7% 10.8% 10.7%
793 7.3% 669
673 288 296
271
500 552 211 458 495 489
272 101 255
FY16 FY17 FY18 FY19 HY20 FY16 FY17 FY18 FY19 HY20 FY16 FY17 FY18 FY19 HY20
1H EBITDA 2H EBITDA ROIC 1H EBITDA 2H EBITDA EBITDA Margin 1H EBITDA 2H EBITDA ROIC
. 1. Group average ROE FY16 – HY20 11.3%
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Lendlease HY20 Financial Results / 17

Artist’s impression: 30 Van Ness, San Francisco

Operational Update

Steve McCann Group Chief Executive Officer and Managing Director

Lendlease HY20 Financial Results / 18

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Growth in
platform
across target
gateway
cities
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Development
Pipeline ($b)
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112
76
71
49 49
FY16 HY20
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Construction backlog revenue ($b)

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15 16 15 16
14
FY16 HY20
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Funds Under Management ($b)

Investments ($b)

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37
35 4.0
3.7
3.3 3.4
30
3.0
26
24
FY16 HY20 FY16 HY20
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Lendlease HY20 Financial Results / 19

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Development
1. Major buildings only.
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Apartments

Performance

862 residential for sale apartment settlements across gateway cities including:
London, Boston, Melbourne and Singapore
284 residential for rent completions:
Clippership Wharf, Boston
Apartment launches in two cities:
Barangaroo South: One Sydney Harbour:
- 317 for sale apartments, $1.4b presales
- Exploring potential development partnership
Lakeshore East: 853 apartments for sale and rent
Significant new residential led major projects secured:
Thamesmead Waterfront, London: 11,500 units
San Francisco Bay Area project: c.15,000 units

Outlook

Total pipeline of approximately 57,000 units across 12 gateway cities
Apartments for sale:
−1,448 apartment presales in delivery[1]
−The Exchange TRX, Kuala Lumpur to launch shortly
Apartments for rent:
−1,752 in delivery
−Potential for >2,000 units to convert FY20 - FY24
- UK Residential Investment Partnership to progress next building at Elephant Park

Apartment settlements and completions

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1H 2H Target 1,000 – 2,000 units p.a.
2,533
2,075
1,314
1,203
1,146
FY16 FY17 FY18 FY19 HY20
Apartment pipeline
For sale
For rent
34%
56,815
units
66%
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Lendlease HY20 Financial Results / 20

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Development
1. Total estimated development end value.
2. Based on expected conversion of building,
subject to change in delivery program. Not
indicative of cash or profit recognition.
3. Subject to planning approvals and market
conditions.
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Commercial

Performance

Development joint venture formed to deliver Victoria Cross Over Station Development, Sydney:
$1.2b major urbanisation project
c.58,000 sqm office tower
Major commercial developments completed, c.66,000 sqm, $1.8b:
Retail mall, Paya Lebar Quarter, Singapore: c.29,000 sqm
Building 3, International Quarter London: c.26,000 sqm
Daramu House, Barangaroo South, Sydney: c.11,000 sqm
Major commercial buildings in delivery c.$5.4b[1]

Outlook

Potential conversion H2 FY20 – FY22[2] :
−18 buildings, c.523,000 sqm
Near term opportunities:
−Two office buildings at Milano Santa Giulia:
- Tenant secured for >85% of c.50,000sqm of NLA
−Melbourne Quarter:
- Planning approved, tenant marketing
−Brisbane Showgrounds:
- Tenant marketing
−International Quarter London

Commercial building commencements

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By sqm ‘000 Target 2 – 3 commencements p.a.
8
5 4
0 1
288
249
114
58
FY16 FY17 FY18 FY19 HY20
1H 2H No. of buildings
Indicative conversion timing [2,3]
Project # Buildings / sqm ‘000 FY20 FY21 FY22
Melbourne Quarter 1 73
Brisbane Showgrounds 1 32
Milano Santa Giulia 5 142
International Quarter London 2 109
Milan Innovation District 3 72
30 Van Ness, San Francisco 1 25
Waterbank, Perth 1 11
Silvertown Quays, London 3 36
Southbank, Chicago 1 23
Total 18 523
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Lendlease HY20 Financial Results / 21

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Development
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Communities settlements

Performance and outlook

Communities

836 lots settled, impacted by lower demand and tighter credit markets
620 lot sales
Presales of 2,060 lots, $0.6b
Settlement target of 3,000 – 4,000 lots will not be met in FY20
Signs of recovery in Australia point to improving outlook:
HY20 sales up approximately 30% compared with H2 FY19
Enquiry levels in January up by more than 30%
Pipeline of approximately 49,000 lots

Telecommunications Infrastructure

64 towers completed
135 new towers launched

Communities settlements

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1H 2H Target 3,000 – 4,000 lots p.a.
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3,912
3,402
3,060
2,523
836
FY16 FY17 FY18 FY19 HY20
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Lendlease HY20 Financial Results / 22

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Construction
1. Comparative period the half year ended 31
December 2018.
2. Includes FX and Other of ($0.2b).
3. Includes all Construction projects with
backlog greater than $100m, which represents
77% ($11.0b) of secured backlog.
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Performance and outlook[1]

Global EBITDA margin 2.3%, up from 2.1%
EBITDA of $101m, down 9%
Stable portfolio – revenue of $4.3b diversified by sector, client and geography
Revenue down 17% – partial impact from activity on integrated projects being recognised in the Construction segment in HY19
Earnings from integrated projects now reported in Development segment
New work secured $3.1b down from $4.3b:
Lower activity in the Americas
Strong prior period of project wins in Australia
Projects won during the period:
Curtin University School of Design and Built Environment, Perth; and HMAS Watson Redevelopment Delivery Phase, Sydney
Several residential and commercial projects in the US
Backlog revenue of $14b:
Strong franchises with external clients in key target sector and markets
Growth in the urbanisation pipeline expected to provide significant opportunities for future construction backlog
Preferred on c.$10b across external and integrated projects

Backlog revenue ($b)

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3.1 (4.3)
15.6
14.8 14.2²
HY19 FY19 New work Revenue HY20
secured realised
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HY20[3] backlog by sector and client

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Commercial Lendlease
Residential Corporate
Defence Government
Social Infrastructure
Transport
Hotel/Entertainment
Other
9% [4%] 18%
29%
9%
40%
11%
20% 42%
18%
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Lendlease HY20 Financial Results / 23

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Investments
1. Comparative period the half year ended 31
December 2018.
2. Secured future FUM from funds or mandates
with development projects.
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Operating earnings

Performance and outlook[1]

EBITDA of $120m, up strongly from $70m
Growth in base fees and significant performance fee post completion of Paya Lebar Quarter, Singapore
Funds Under Management of $36.9b:
8% growth:
- Lendlease Global Commercial REIT $1.5b
- Retail: Paya Lebar Quarter, Singapore
- Residential FUM doubled to $1.4b
$50b of institutional grade investment product to be created from the c.$100b urbanisation pipeline:
- Secured future FUM of $3.1b[2] representing seven buildings in delivery that have been sold down
- Opportunity to double FUM as urbanisation pipeline is delivered
Assets Under Management of $29.7b:
Recurring asset and property management fees
Military housing $13.3b, 51,789 units
Commercial Assets $16.4b

Operating EBITDA ($m)

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1H 2H
144
133
116
108
120
FY16 FY17 FY18 FY19 HY20
Investments platform ($b)
FUM AUM
Australia Asia Europe Americas
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5% [2%]
23%
25%
$37b 45% $30b
68%
30%
2%
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Lendlease HY20 Financial Results / 24

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Investments
1. Comparative period the half year ended 31
December 2018.
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Ownership earnings

Performance and outlook[1]

EBITDA $135m, down from $203m:
Lower asset value appreciation
Invested Capital $3.9b

Co-investments :

$1.9b of investments:
Alignment with capital partners
Lendlease Global Commercial REIT – 24% ownership
Paya Lebar Quarter – 30% ownership
Revaluations of $19m, down from $77m
3% of Group operating EBITDA

Retirement Living :

$1.4b investment, 12,825 units across 72 villages
Lower contribution with a resilient performance from the established portfolio offset by lack of price growth and lower development activity
Resales up 14% across the portfolio

Other :

Invested equity in US military housing of $209m
372 telecommunications towers

Ownership EBITDA ($m)

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1H 2H
536
379
350 345
135
FY16 FY17 FY18 FY19 HY20
Investments by product ($b)
Co-investments
Retirement
US Military Housing
12%
Other
5%
$4.0b 47%
36%
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Lendlease HY20 Financial Results / 25

Artist’s impression: The Exchange TRX, Kuala Lumpur

Outlook

Steve McCann Group Chief Executive Officer and Managing Director

Lendlease HY20 Financial Results / 26

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Outlook
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Positioned for long term growth

Nearer term core business outlook – expect to convert a number of commercial and residential opportunities in H2 FY20
Total development pipeline of $112b:
Urbanisation capabilities increasingly being recognised as world leading
21 major urbanisation projects across nine gateway cities
Construction backlog revenue of $14b:
Design and delivery capability for integrated model
External backlog diversified by client, sector and geography
Investments segment with $4b of investments, $37b in FUM and $30b in AUM:
Funding and investment capability for integrated model
Strong capital partner relationships, fund and asset management platforms
Non core segment:
Engineering sale announced, expected completion by end of FY20
Sale process for Services ongoing
Focus on leveraging the Group’s competitive advantage via the urbanisation and investment platforms:
Unwavering commitment to health and safety
Disciplined approach to origination and managing individual project and property cycle risk

Artist’s impression: Milan Innovation District

Questions

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2020

Half Year Results Appendix 20 February 2020

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Paya Lebar Quarter, Singapore

Victoria Harbour, Melbourne

Overview

Lendlease HY20 Financial Results / 3

Our business model

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

Construction segment

Development segment

Investments segment

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

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

A leading investment management platform and the Group’s ownership interests in co-investments, Retirement and US Military Housing

Core financial returns

Construction margin[1] • Fund and asset management fees
• Project management and • Yield and capital growth on construction management fees ownership interests
Development margin
Development management fees
Origination fees
From external clients.

Lendlease HY20 Financial Results / 4

Globally diverse pipeline

Remaining estimated development end value, subject to approval and contractual conditions.

Our globally diverse pipeline provides long term earnings visibility

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$112.5b $14.2b $36.9b $4.0b
Development Construction Funds Under Investments
pipeline [1] backlog revenue Management (FUM)
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Americas

Europe

Asia

Australia

$30.1b Development pipeline[1]
$48.9b Development pipeline[1]
$3.9b Development pipeline[1]
$29.6b Development pipeline[1]
$5.3b Construction backlog
$1.4b Construction backlog
$0.8b Construction backlog
$6.7b Construction backlog $25.1b FUM
$0.8b FUM
$1.7b FUM
$9.3b FUM
$0.5b Investments
$0.1b Investments
$1.0b Investments
$2.4b Investments

Lendlease HY20 Financial Results / 5

Global trends influencing our strategy

	Global		Technology,
Urbanisation	infrastructure	Funds Growth	digital and data
In 2018, 55% of the world’s	Global infrastructure spending	Global assets under	The exponential growth of
population lived in urban	is estimated to rise to an	management are forecast to	internet use has created a
areas, and that’s expected to	average of US$5.1 trillion per	rise from US$98 trillion in	new society of hyper
increase to 68% by 2050. The	year between now and 20354	2017 to US$145 trillion by	connected citizens. Estimates
human shift from rural to		20255	predict by 2025, every
urban areas, combined with			connected person on average
the overall growth of the			will have a digital data
world’s population, could add			engagement over 4,900 times
another 2.5 billion people to			per day or one digital data
urban areas by 20501			interaction every 18 seconds6

Sustainability

Ageing population

The exponential growth of Internationally, the number of internet use has created a people aged 60+ is projected new society of hyper to grow over three times connected citizens. Estimates faster than the overall predict by 2025, every population (2.3% vs 0.7% connected person on average p.a.) between 2020 and 2050[7] will have a digital data engagement over 4,900 times per day or one digital data interaction every 18 seconds[6]

Climate change and society’s responses to it are now widely recognised as foundational drivers of risk and opportunity within the global economy[8]

Where we are today	Where we are today	Where we are today	Where we are today	Where we are today	Where we are today
•	$97.9b urbanisation	•	Focus on social	•	$36.9b of funds under
	pipeline2		infrastructure with key		management
•	21 major urbanisation projects3 across 9 gateway cities		projects in health and education, and an increasing presence in telecommunications	•	13.6% annual growth in funds under management since FY16

Where we are today Where we are today Where we are today • Our digital engineering • One of Australia’s largest • Barangaroo South is expertise enables the full operators of retirement Australia's first carbon value of digital models and villages neutral precinct new technology to be • • First flagship senior living Fifth time in the past six
unlocked and utilised project in China, Ardor years that APPF[9]
through all phases of the Gardens, commenced Commercial has attained project construction in FY19 the prestigious GRESB
• Digital twins are going to number one global lead the disruption and ranking[10] change the way we deliver • Four Lendlease managed
smart cities funds achieved top 10 GRESB global ranking[10]

1. World Urbanization Prospects: The 2018 Revision, United Nations. 2. Remaining estimated development end value, subject to approval and contractual conditions. 3. Urbanisation development projects with end value >$1b. 4. McKinsey Global Institute: Bridging Infrastructure Gaps - Has the World Made Progress? October 2017. Includes some internal calculations. 5. Asset & Wealth Management Revolution: Pressure on profitability, PwC October 2018. 6. IDC’s Data Age 2025 – The Digitization of the World. November 2018 report. 7. World Population Prospects 2019: United Nations. 8. APRA: Climate change: Awareness to action, March 2019. 9. Australian Prime Property Fund. 10. 2019 Global Real Estate Sustainability Benchmark.

Lendlease HY20 Financial Results / 6

Sustainability

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

Lendlease leadership

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

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

Lendlease leadership

Lendlease’s 2[nd] RAP achieved ‘Elevate’ status from Reconciliation Australia
Lendlease is currently preparing our next RAP and targeting ‘Elevate’ status again

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MSCI is an independent provider of researchdriven insights and tools for institutional investors

Lendlease leadership

Lendlease Group continues to achieve highest AAA ESG rating and described as an “Industry Leader” in the green building space

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

Lendlease leadership

Signatory since FY08

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

Lendlease leadership

Signatory since April 2014

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

Lendlease leadership

Beating 964 participants, the Australian Prime Property Fund (APPF) Commercial rated worlds best by GRESB in 2019[1] .It is the fifth time in the past six years that APPF Commercial has attained the prestigious number one global ranking
Four Lendlease managed funds achieved top 10 GRESB global ranking

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In 1983, Lendlease Founder, Dick Dusseldorp, and the then Managing Director, Stuart Hornery, set up the Lendlease Foundation with a long term vision to create a function that would nurture and support its social responsibility both internally to employees as well as to the community.

Current Lendlease Foundation program and engagement opportunities include:

Springboard
Great Barrier Reef Foundation
Australian Business Community Network
MATES In Construction
R U OK?
Red Cross
OzHarvest
Chicago Cook Workforce Partnership
Loneliness Lab

1. Lendlease managed Australian Prime Property Fund Commercial ranked first out of 964 respondents in the 2019 Global Real Estate Sustainability Benchmark.

Lendlease HY20 Financial Results / 7

Portfolio Management Framework

Business model

Integrated model synergies
• Target EBITDA mix: o Development 40 - 50% o Construction 10 - 20% o Investments 35 - 45%

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2
Target returns
• Group ROE 10 - 14%
1 3 • Development ROIC 10 - 13% [1]
• Construction EBITDA margin 2 - 3%
• Investments ROIC 8 - 11% [1]
5 4
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Capital allocation

Focused on gateway cities
• 50 - 70% capital in Australia • 20% capital max per international region

Capital structure

Distribution policy

Payout 40 - 60% of earnings
Investment grade credit rating
Capital management discipline
Optimised WACC
• Target gearing[2 ] 10 - 20%
Through-cycle target based on rolling three to five year timeline.
Net debt to total tangible assets, less cash. Review of capital structure underway to reflect change in business mix.

Artist’s impression: Victoria Cross Over Station Development, Sydney

Group

Lendlease HY20 Financial Results / 9

Income Statement

HY19 balances have been restated for discontinued operations during the year.

$m HY191	HY20
Revenue from contracts with customers 6,155 Other revenue 82 Cost of sales (5,774)	5,648
	90
	(5,142)
Gross profit 463	596
Share of profit of equity accounted investments 192 Other income 206 Other expenses (354)	65
	276
	(458)
Results from operating activities from continuing operations 507	479
Finance revenue 9 Finance costs (62)	5
	(81)
Net finance costs (53)	(76)
Profit before tax from continuing operations 454	403
Income tax expense (99)	(95)
Profit after tax from continuing operations 355	308
Profit/(loss) after tax from discontinued operations (339)	5
Profit after tax 16	313
Profit after tax attributable to: Members of Lendlease Corporation Limited (91) Unitholders of Lendlease Trust 107
	281
	32
Profit after tax attributable to securityholders 16	313
External non controlling interests -	-
Profit after tax 16	313
Earnings per Stapled Security from continuing operations cents 62.2 Earnings per Stapled Security cents 2.8	54.6
	55.5

Lendlease HY20 Financial Results / 10

Statement of Financial Position

$m HY19 FY19	HY20 396 1,895 1,837	$m HY19 FY19	HY20
Current Assets Cash and cash equivalents 1,088 1,290 Loans and receivables 2,196 2,050 Inventories 2,863 2,238 Other financial assets 10 97 Current tax assets - 11 Other assets 107 70 Disposal Groupassets held for sale - -		Current Liabilities Trade and other payables 5,826 5,724 Provisions 323 332 Borrowings and financing arrangements - 225
			3,795
			257
			225
	15	Other financial liabilities 6 6	7
	21 89 1,900 6,153 531 3,558 3,822	Disposal Groupliabilities held for sale - -	1,700
		Total current liabilities 6,155 6,287	5,984
		Non Current Liabilities Trade and other payables 1,364 1,401 Provisions 47 45 Borrowings and financing arrangements 3,364 2,490 Other financial liabilities 1 1 Deferred tax liabilities 420 597
Total current assets 6,264 5,756
Non Current Assets Loans and receivables 716 688 Inventories 3,177 3,345 Equity accounted investments 3,191 3,452 Investment properties 376 501 Other financial assets 1,497 1,103 Deferred tax assets 112 101 Property, plant and equipment 470 548 Intangible assets 1,436 1,457 Defined benefit plan asset 142 140 Other assets 77 87			1,617
			48
			3,166
			-
			695
	598	Total non current liabilities 5,196 4,534	5,526
	1,088	Total liabilities 11,351 10,821	11,510
	124	Net assets 6,107 6,357	6,511
	653 1,286 128 80 11,868 18,021	Equity Issued capital 1,297 1,300 Treasury securities (61) (68) Reserves 126 105 Retained earnings 3,427 3,815
			1,304
			(67)
Total non current assets 11,194 11,422			99
Total assets 17,458 17,178			3,985
		Total equity attributable to members of Lendlease Corporation Limited 4,789 5,152 Total equity attributable to unitholders of LendleaseTrust 1,317 1,182	5,321
			1,167
		Total equity attributable to securityholders 6,106 6,334 External non controllinginterests 1 23	6,488
			23
		Total equity 6,107 6,357	6,511

Lendlease HY20 Financial Results / 11

Statement of Cash Flows

HY19 comparatives are nil as Interest in relation to lease liabilities and Repayment of lease liabilities were not recognised under AASB117 Leases .
Balances include cash flows relating to both continuing and discontinued operations.
$701m million of cash and cash equivalents has been classified as Assets held for sale at HY20.

$m HY192	HY20
Cash Flows from Operating Activities Cash receipts in the course of operations 8,071 Cash payments in the course of operations (8,862) Interest received 6 Interest paid in relation to other corporations (85) Interest in relation to lease liabilities1 - Dividends/distributions received 63 Income taxpaid in respect of operations (17)
	7,321
	(7,664)
	4
	(95)
	(13)
	110
	(21)
Net cash used in operating activities (824)	(358)
Cash Flows from Investing Activities Redemption of investments 228 Acquisition of investments (201) Acquisition of/capital expenditure on investment properties (18) Net loan drawdowns from associates and joint ventures (20) Disposal of consolidated entities (net of cash disposed and transaction costs) 232 Disposal of property, plant and equipment 7 Acquisition of property, plant and equipment (47) Acquisition of intangible assets (24)
	304
	(499)
	(37)
	(33)
	94
	13
	(51)
	(32)
Net cashprovided by/(used in) investing activities 157	(241)
Cash Flows from Financing Activities Proceeds from borrowings 3,031 Repayment of borrowings (2,090) Dividends/distributions paid (190) Payments for on market buyback of stapled securities (174) Payments for on market buyback of stapled securities - Dividend Reinvestment Plan (11) Repayment of lease liabilities1 -
	2,060
	(1,445)
	(163)
	-
	-
	(27)
Net cashprovided by financing activities 566	425
Other Cash Flow Items Effect of foreign exchange rate movements on cash and cash equivalents 12
	(19)
Net decrease in cash and cash equivalents (89)	(193)
Cash and cash equivalents at beginning of financialperiod 1,177	1,290
Cash and cash equivalents at end of financialperiod3 1,088	1,097

Lendlease HY20 Financial Results / 12

Underlying operating cash flow[1]

Cash conversion (FY16 – HY20) ($m)

Underlying operating cash flow has been included to provide a more accurate cash comparator against Group EBITDA
This represents 84% of Group EBITDA over the period. Balance relates to a combination of factors including:
Investment revaluations
Retirement DMF accruals
Construction working capital movements

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Total conversion against EBITDA of 84%
Cash
157% 104% 73% 36% 5%
Conversion
1,202 1,245
Group 1,055
EBITDA
867
1,659
579
Underlying 1,254
operating 913
cash flow
316 29
FY16 FY17 FY18 FY19 HY20
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Reconciliation[2] (FY16 – HY20) ($m)

Balances include cash flows relating to both continuing and discontinued operations.
Refer to Financial and Operational Metrics data file for full reconciliation.
Movement in development properties inventory, less movement in deferred land payments.
Reallocation reflects cash proceeds from sell down of development entities and realised gains on sale of assets not reflected in operating cash flow.
Lendlease has delivered underlying operating cash flow of $4.2b from FY16 to HY20
$0.8b has been paid in interest and tax
Since FY16, $1.4b (34%) of the Group’s underlying operating cash flow has been reinvested into development inventories[3]
$1.2b has been generated from the sell down of deconsolidated development entities and realised net gain on sales of assets (classified as statutory investing cash flow)[4]

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84% conversion
against EBITDA
4,948
1,193 4,171
1,403
801
774
Operating Interest and Net Adjustment Underlying EBITDA
cash flow tax paid investment from investing operating
into cash flow cash flow
development
inventory
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Lendlease HY20 Financial Results / 13

HY20 underlying operating cash flow[1]

Balances include cash flows relating to both continuing and discontinued operations.

In HY20 Lendlease delivered underlying operating cash flow of $29m

$m	Statutory	Adjustments	Underlying
Cash Flows from Operating Activities
Cash receipts in the course of operations	7,321	-	7,321
Cash payments in the course of operations	(7,664)	301	(7,634)
Dividends/distributions received	110	-	110
Deconsolidation of development entities	-	942	94
Realised gains on sale of assets	-	1383	138
Interest received	4	(4)	-
Interest paid in relation to other corporations	(95)	95	-
Interest in relation to lease liabilities	(13)	13	-
Income tax paid in respect of operations	(21)	21	-
Net cash provided by operating activities	(358)	387	29
Cash Flows from Investing Activities
Redemption of investments	304	(138)3	166
Acquisition of investments	(499)	-	(499)
Acquisition of/capital expenditure on investment properties Net loan drawdowns from associates and joint ventures	(37) (33)	- -	(37) (33)
Disposal of consolidated entities (net of cash disposed and transaction costs)	94	(94)2	-
Disposal of property, plant and equipment	13	-	13
Acquisition of property, plant and equipment	(51)	-	(51)
Acquisition of intangible assets	(32)	-	(32)
Net increase in development inventory	-	(30)1	(30)
Net cash provided by investing activities	(241)	(262)	(503)

Overview

Underlying operating cash flow is derived by adjusting statutory cash flows to better reflect operating cash generated by the Group from its operating model prior to:
Payment of interest and tax
Reinvestment in the Group’s pipeline

Summary of adjustments

1. Net increase in development inventory

During the period there was an increase in development inventories, net of deferred land payments, which has been reclassified as an investing activity

2. Cash proceeds from sell down of development entities

The proceeds on sale of deconsolidated development entities is reclassified as an operating activity, to align with the treatment of cash flows prior to deconsolidation

3. Realised gains on sale of assets

Lendlease is an active investment manager, with revaluations included in EBITDA. Accordingly, gains on disposal (including crystallised revaluations) are reclassified as an operating activity

Lendlease HY20 Financial Results / 14

Segment financial metrics

Return on Invested Capital (ROIC) is calculated using the annualised Profit after Tax divided by the arithmetic average of beginning and half year end invested capital.

Operating Profit after Tax ($m)

Operating EBITDA ($m)

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HY19 HY20 HY19 HY20
272 273
261 255
226
199
179 186
111
101
76
59
Development Investments Construction Development Investments Construction
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ROIC[1] (Development and Investments), EBITDA margin (Construction)

Invested capital (Development and Investments) ($b)

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HY19 HY20
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HY19 HY20
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ROIC EBITDA margin
13.6%
10.7%
7.5% 7.3%
2.1% 2.3%
Development Investments Construction
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5.3
5.1
3.9
3.4
Development Investments
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Lendlease HY20 Financial Results / 15

Segment financial metrics

By segment

By segment
Revenue ($m) EBITDA ($m) Profit after Tax ($m) HY19 HY20 HY19 HY20 HY19 HY20	Invested capital ($b) HY19 FY19 HY20
Development 870 1,161 261 272 179 186 Investments 164 234 273 255 226 199 Construction 5,191 4,326 111 101 76 59 Corporate1 21 22 (88) (72) (126) (136)	5.1 4.8 5.3 3.4 3.6 3.9


Total Core Segments 6,246 5,743 557 556 355 308
Non Core 1,525 1,665 (474) 23 (339) 5
Total Group 7,771 7,408 83 579 16 313

Comprises Group Services and Group Treasury costs. HY20 EBITDA: Group Services ($56m) and Group Treasury ($16m). HY19 EBITDA: Group Services ($74m) and Group Treasury ($14m).

Lendlease HY20 Financial Results / 16

Revenue / EBITDA by segment

$m Revenue EBITDA HY19 HY20 HY19 HY20 Development Australia 595 530 71 170 Asia 9 7 101 39 Europe 223 492 31 56 Americas 43 132 58 7 Total Development 870 1,161 261 272 Construction Australia 2,149 1,863 64 59 Asia 200 122 4 (4) Europe 487 414 19 14 Americas 2,355 1,927 24 32 Core Construction 5,191 4,326 111 101 Non Core 1,525 1,665 (474) 23 Total Construction 6,716 5,991 (363) 124 Investments Australia 104 92 199 118 Asia 29 95 33 109 Europe 6 11 10 5 Americas 25 36 31 23 Total Investments 164 234 273 255 Total Operating Australia 2,848 2,485 334 347 Asia 238 224 138 144 Europe 716 917 60 75 Americas 2,423 2,095 113 62 Core Operating 6,225 5,721 645 628 Non Core 1,525 1,665 (474) 23 Total Operating 7,750 7,386 171 651	Operating EBITDA by segment ($m) 261 111 273 (474) 272 101 255 23 HY19 HY20
	Operating EBITDA by region ($m) Development Construction Investments Non Core
	334 138 60 113 (474) 347 144 75 62 23 HY19 HY20
	Australia Asia Europe Americas Non Core

Lendlease HY20 Financial Results / 17

Revenue / EBITDA by segment, local currency

Operating EBITDA, local currency (m)

Asia

SGDm¹ Revenue EBITDA HY19 HY20 HY19 HY20 Development 9 7 100 37 Construction 198 115 3 (4) Investments 29 89 33 102 Total Operating 236 211 136 135 Europe £m1 Revenue EBITDA HY19 HY20 HY19 HY20 Development 123 265 17 30 Construction 268 224 10 8 Investments 3 6 6 3 Total Operating 394 495 33 41 Americas US$m Revenue EBITDA HY19 HY20 HY19 HY20 Development 31 91 42 4 Construction 1,696 1,310 17 22 Investments 18 24 22 16 Total Operating 1,745 1,425 81 42	100 37	3	33 136 (4) 102 135 HY19 HY20
	Development Construction Investments Total Operating
	17 10 6 33 30 8 3 41 HY19 HY20
	Development Construction Investments Total Operating
	42 17 22 81 4 22 16 42 HY19 HY20
	Development Construction Investments Total Operating

Major currency in region.

Lendlease HY20 Financial Results / 18

Exchange rates

Income Statement

Local	Foreign	HY191	FY192	HY203
AUD	USD	0.72	0.71	0.68
AUD	GBP	0.55	0.55	0.54
AUD	SGD	0.99	0.97	0.94

Statement of Financial Position

Local	Foreign	HY194	FY195	HY206
AUD	USD	0.70	0.70	0.70
AUD	GBP	0.55	0.55	0.53
AUD	SGD	0.96	0.95	0.94

Average foreign exchange rate for the half year 2019.
Average foreign exchange rate for the full year 2019.
Average foreign exchange rate for the half year 2020.
Spot foreign exchange rate at 31 December 2018.
Spot foreign exchange rate at 30 June 2019. 6. Spot foreign exchange rate at 31 December 2019.

Lendlease HY20 Financial Results / 19

HY20 regional EBITDA to PAT

reconciliation

Depreciation and amortisation.

$m	EBITDA Net interest D&A1 PBT Tax	PAT
Australia Development Construction Investments	170 (3) (4) 163 (49) 59 - (4) 55 (17) 118 - (3) 115 (23)
		114
		38
		92
Total Australia	347 (3) (11) 333 (89)	244
Asia Development Construction Investments	39 - (1) 38 (14) (4) (1) (1) (6) 1 109 - (1) 108 (18)
		24
		(5)
		90
Total Asia	144 (1) (3) 140 (31)	109
Europe Development Construction Investments	56 1 (3) 54 (9) 14 - (2) 12 (2) 5 - (1) 4 -
		45
		10
		4
Total Europe	75 1 (6) 70 (11)	59
Americas Development Construction Investments	7 - (3) 4 (1) 32 (2) (6) 24 (8) 23 (1) (3) 19 (6)
		3
		16
		13
Total Americas	62 (3) (12) 47 (15)	32
Corporate Group Services GroupTreasury	(56) (9) (45) (110) 32 (16) (61) - (77) 19
		(78)
		(58)
Total Corporate	(72) (70) (45) (187) 51	(136)
Total Core Business	556 (76) (77) 403 (95)	308
Non Core	23 - (17) 6 (1)	5
Total Group	579 (76) (94) 409 (96)	313

Lendlease HY20 Financial Results / 20

Debt metrics

		HY19	FY19	HY20
Net debt1	$m	2,276	1,425	2,294
Borrowings to total equity plus borrowings	%	35.5	29.9	34.2
Net debt to total tangible assets, less cash1	%	15.2	9.9	14.7
Interest cover2	times	8.1	8.8	7.4
Average cost of debt	%	4.2	4.0	3.6
Average debt maturity	years	4.0	4.8	3.9
Average debt mix fixed: floating	ratio	59:41	52:48	49:51
Undrawn facilities	$m	1,020	2,631	2,009

HY20 includes $701m of cash and cash equivalents for the non core businesses which has been classified as Assets held for sale.
EBITDA plus interest income, divided by interest finance costs, including capitalised finance costs. FY19 and HY19 EBITDA have been adjusted to exclude the $500m provision on underperforming Engineering projects.

Lendlease HY20 Financial Results / 21

Debt facilities and maturity profile

Debt facilities[1] ($m)

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Drawn Facility
1,800
960
755 725
562 564 564 568 568
303 303 343 318 318
Australian medium Syndicated Cash UK Bond Issue Club Revolving Asia Loan Facility US$ Reg. S notes Singapore Bond
term notes Advance Facility Credit Facility S$300m
Debt maturity profile [2] ($m)
Australian medium term notes Syndicated Cash Advance Facility UK Bond Issue Club Revolving Credit Facility
Asia Loan Facility US$ Reg. S notes Singapore Bond S$300m Undrawn
755
566
900 900 960
571
80
319
225
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
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Values are shown at amortised cost. 2. Values are shown at gross facility value.

Lendlease HY20 Financial Results / 22

Key dates for investors

	Date
HY20 results released to market / interim distribution declared	20 February 2020
Securities quoted ex distribution on the Australian Securities Exchange	27 February 2020
Interim distribution record date	28 February 2020
Interim distribution payable	17 March 2020
FY20 results released to market / final distribution declared	17 August 2020
Annual General Meetings	20 November 2020

Artist’s impression: Salesforce Tower, Sydney Place

Development Segment

Lendlease HY20 Financial Results / 24

Earnings drivers - Development

ROIC target 10-13%; Invested capital $5.3b; Pipeline[1] $112.5b

Urbanisation Communities Telco Infrastructure Military Infrastructure Development Housing 21 major projects in 17 projects 9 gateway cities Australian US Military US Telco Apartments Commercial Communities Infrastructure Housing Towers Development Portfolio Target Target Target 1,000 - 2,000 2 - 3 buildings 3,000 - 4,000 Development Development Origination fees settlements commenced settlements margin fees per annum per annum per annum Additional scope on existing 56,815 units 2,402,000 sqm 48,525 lots 289 tower Periodic bids for projects and $68.8b $29.1b $14.3b pipeline PPP projects periodic bids for major projects

Remaining estimated development end value, subject to approval and contractual conditions.

Lendlease HY20 Financial Results / 25

Development HY20

Comparative period the half year ended 31 December 2018.
Total estimated development end value, subject to approval and contractual conditions.
Remaining estimated development end value, subject to approval and contractual conditions.

Overview

Development of inner city mixed use developments, apartments, communities, retirement, retail, commercial assets, and social and economic infrastructure
Financial returns are generated via development margin, development management fees and origination fees

Drivers[1]

Apartments for sale settlements: 862 units, up from 145 units Paya Lebar Quarter, Singapore; Elephant Park, London; Clippership Wharf, Boston and Victoria Harbour, Melbourne
Apartments for rent completions: 284 units
Clippership Wharf, Boston
Apartment launches:
One Sydney Harbour Tower 1, Barangaroo, Sydney - 317 units
Lakeshore East, Chicago – 350 units for sale, 503 units for rent
• Final profit contribution from Paya Lebar Quarter: Retail mall c.29,000 sqm
Revenue from residential apartments recognised on percent complete basis
Development joint venture to deliver Victoria Cross Over Station Development, Sydney
$1.2b over station development
Communities: Settlements 836 lots, down 8% Sales 620 lots, down 34%
US telecommunication towers: – 64 completions, 135 commencements

Performance		HY19	HY20
Core business EBITDA mix	%	40	43
ROIC	%	7.5	7.3
Invested capital	$b	5.1	5.3

Outlook

Two new major urbanisation projects secured this half: Thamesmead Waterfront, London: $14.8b[2] San Francisco Bay Area project: $21.5b[2]
Preferred bidder on one additional major urbanisation project:
Birmingham Smithfield: $2.8b
$112.5b development pipeline[3]
11 major apartment buildings in delivery across five gateway cities o 1,448 units presold in delivery: $2.2b
1,752 units for rent in delivery: $1.7b[2]
2,060 communities lots presold: $0.6b

c.317,000 sqm of commercial space in delivery across five major buildings: $4.8b[3]

Remaining secured pipeline[3] not yet in delivery o 53,615 apartment units: c.$66b o c.2,085,000 sqm of commercial space: c.$24b o 24 buildings in various stages of planning o Additional 25+ buildings in pipeline

Lendlease HY20 Financial Results / 26

112.5

Development earnings / pipeline

Remaining estimated development end value, subject to approval and contractual conditions.
FY18 onwards excludes Australian Retirement pipeline which is now included in the Investments segment following the Retirement Living transaction. From HY20, Retirement product in Asia has been included within Urbanisation.
FY18, FY19 and HY20 include $0.1b, $0.2b and $0.3b of Infrastructure pipeline respectively.

EBITDA by region ($m)

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HY19 HY20
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272
261
170
101
71
56 58
39
31
7
Australia Asia Europe Americas Total
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HY20 urbanisation pipeline[1] by region

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Australia Asia Europe Americas
16%
30%
4%
$97.9b
50%
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Pipeline[1] by region ($b)

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HY19 HY20
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74.5
48.9
31.1 29.6 30.1 30.1
5.4 3.9 7.9
Australia Asia Americas Total
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Asia Europe Americas Total
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Pipeline[1] ($b)

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Urbanisation Communities²
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112.5³
14.3
76.1³
71.1³
14.7
15.1
48.8 49.3
97.9
11.5 14.7
55.9 61.2
37.3 34.6
FY16 FY17 FY18 FY19 HY20
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Lendlease HY20 Financial Results / 27

Residential development

Communities settlements

HY20 Apartment settlements

Communities settlements	HY20 Apartment settlements
HY19 HY20 Lots $m Lots $m QLD 173 33 208 49 NSW 294 65 5 2 VIC 357 83 544 143 SA 43 7 54 9 WA 41 9 25 6 Total Australia 908 197 836 209 Communities sales HY19 HY20 Lots $m Lots $m QLD 313 72 213 52 NSW 121 66 226 85 VIC 413 112 97 28 SA 61 9 50 7 WA 35 7 34 9 Total Australia 943 266 620 181	Units $m
	Apartments for sale Australia Victoria Harbour - Collins Wharf 1 54 44 Other 3 2
	Total Australia 57 46
	Asia Paya Lebar Quarter - Residential (3 Buildings) 429 602
	Total Asia 429 602
	Europe Elephant Park - West Grove (Building 2) 186 243 Other 98 62
	Total Europe 284 305
	Total Americas 92 146
	Total apartment for sale settlements 862 1,099
	Apartments for rent1 Americas Clippership Wharf - Buildings 1 and 2 284 303
	Total apartment for rent completions 284 303

	Total apartment settlements/completions 1,146 1,402

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

Lendlease HY20 Financial Results / 28

Non residential development commencements and completions

City	Project	Building	Sector	Capital model	End value1 ($b)	sqm ‘000
Commercial	commencements
Sydney	Victoria Cross Over Station Development	Victoria Cross Over Station Development	Office / Retail	Joint venture	1.2	58
Commercial	completions
Sydney	Barangaroo South	Daramu House	Office	Fund through	0.3	11
Singapore	Paya Lebar Quarter	Retail	Retail	Joint venture	1.1	29
London	International Quarter London	Building 3	Office / Retail	Fund through	0.4	26
Location				Completed (no.)	End value ($m)
Telecommunications completions
Americas				64	55.6

Total estimated development end value, subject to approval and contractual conditions.

Lendlease HY20 Financial Results / 29

Residential apartments[1]

Movement in presales – Apartments for sale

By value ($m)

By units

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Australia Asia Europe Americas Australia Asia Europe Americas
3,583 3,615 1,681 (1,099)
121 283
549 (862)
1,230 861 23 2,516
2,223 131
412 112 (7) 1,903 538 1,911 473
98 150 120
1,013
750 732
1,820 423 187 1,933 571 1,792
675 868 458
HY19 FY19 Sales Settlements Other HY20 HY19 FY19 Sales Settlements FX and HY20
Other
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Apartments for rent in delivery

Includes 100% of revenue from joint venture projects.

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By units By value [2] ($b)
Europe Americas Europe Americas
1,985 503 (284) 1.8 0.4 (0.3)
0.1 1.7
-
1,752
1.5
1,533
1,322 1.0 0.7 0.9
1,089
870
0.8 0.8 0.8
663 663 663
HY19 FY19 Commence- Completions Other HY20 HY19 FY19 Commence- Completions FX and HY20
ments ments Other
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Total estimated development end value, subject to approval and contractual conditions.

Lendlease HY20 Financial Results / 30

Residential communities – Australia

Movement in presales[1]

By value ($m)

By lots

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881
3,266
181 (209)
620 (836)
625
2,276 597
2,060
HY19 FY19 Sales Settlements HY20 HY19 FY19 Sales Settlements HY20
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Includes 100% of revenue from joint venture projects.

Lendlease HY20 Financial Results / 31

Pipeline provides long term earnings visibility

Record secured pipeline[1] of $112.5b controlled by invested capital of $5.3b

Target annual turnover[[2]]

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Apartments
turnover [[2]]
1,448 presold units and 1,752 units for rent across 11 major apartment buildings [3] in delivery, expected delivery H2 FY20 to FY24
1,448 units 1,752 units
53,615 units remaining 56,815 units
presold⁴ for rent
1,000 - 2,000
settlements
$2.2b $1.0b⁵
$65.6b remaining $68.8b
presold⁴ for rent
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Commercial

Remaining estimated development end value, subject to approval and contractual conditions. Includes Infrastructure of $0.3b.
Subject to market conditions.
Refer to the Apartments Settlement Profile on page 33 for a breakdown of the major buildings.
Presales balance on major buildings in delivery only.
Total estimated development end value of c.$1.7b, with c.$0.7b realised to date.
Refer to the Commercial Buildings Completion Profile on page 34 for a breakdown of the major buildings.

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5 major buildings [6] in delivery, with expected completion FY21 to FY25
317,000 sqm in delivery 2,085,000 sqm remaining 2,402,000 sqm
2 - 3
buildings
commenced
$4.8b⁷ in delivery $24.3b remaining $29.1b
Communities
2,060 lots
46,465 lots remaining 48,525 lots
presold
3,000 - 4,000
settlements
$0.6b
$13.7b remaining $14.3b
presold
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Total estimated development end value of c.$5.4b, with c.$0.6b realised to date.

$112.5 billion Total pipeline[1]

Lendlease HY20 Financial Results / 32

Major urbanisation project summary

Includes forecast commencement dates, subject to change in delivery program.
Based on expected completion date of underlying buildings, subject to change in delivery program.
Floor space measured as Net Lettable Area. 4. Remaining estimated development end value, subject to approval and contractual conditions.
Formerly Circular Quay Tower. 6. Commercial in confidence.

Region	Project Project secured Delivery commenced1 Completion date2 Residential backlog units Commercial backlog sqm ‘0003 Remaining end value ($b)4 Land payment model
Australia	Barangaroo South, Sydney FY09 FY12 FY26 849 1 4.0 Staged payment
	Melbourne Quarter FY13 FY16 FY26 1,488 124 2.3 Land management
	Brisbane Showgrounds FY09 FY11 FY33 2,276 67 2.2 Land management
	Victoria Harbour, Melbourne FY01 FY04 FY27 2,048 - 2.1 Land management
	Sydney Place5 FY12 FY17 FY22 - 59 1.9 Upfront payment
	Waterbank, Perth FY13 FY20 FY29 1,308 12 1.4 Land management
	Victoria Cross Over Station Development, Sydney FY19 FY20 FY25 - 58 1.2 Staged payment
Asia	The Exchange TRX, Kuala Lumpur FY14 FY17 FY27 2,326 122 3.3 Staged payment
Europe	Thamesmead Waterfront, London FY20 FY25 FY40+ 11,500 82 14.8 Land management
	Euston Station, London FY18 FY26 FY40+ 2,000 400 10.7 Land management
	Silvertown Quays, London FY18 FY21 FY32 3,000 440 6.5 Land management
	Milano Santa Giulia, Milan FY18 FY20 FY35 2,558 266 4.0 Land management
	Milan Innovation District FY19 FY21 FY31 946 387 3.6 Staged payment
	International Quarter London FY10 FY14 FY30 - 173 2.6 Land management
	Elephant Park, London FY10 FY12 FY25 1,794 50 2.5 Staged payment
	High Road West, London FY18 FY22 FY30 2,501 14 2.1 Land management
	The Timberyard, Deptford, London FY14 FY16 FY25 1,453 10 1.5 Upfront payment
Americas	San Francisco Bay Area project FY20 FY22 FY37 15,000 n/a6 21.5 Land management
	Southbank, Chicago FY15 FY16 FY27 1,545 25 2.2 Upfront payment
	Lakeshore East, Chicago FY19 FY20 FY26 1,197 2 2.2 Staged payment
	30 Van Ness, San Francisco FY17 FY21 FY25 348 25 1.6 Upfront payment
Other urbanisation projects 2,678 85 3.7
Total urbanisation 56,815 2,402 97.9

Lendlease HY20 Financial Results / 33

Apartments settlement profile

			Total			Units	Presales1	Delivery
City	Project	Building	units	Ownership	Presold	presold1	($b)	date2
Residential for sale apartments
London	The Timberyard, Deptford	Cedarwood Square	203	100%	85%	173	0.1	FY20
Boston	Clippership Wharf	Building 4	114	100%	77%	88	0.1	FY21
London	Elephant Park	East Grove and Park Central North3	166	100%	100%	166	0.1	FY21
Melbourne	Melbourne Quarter	East Tower	719	50%	92%	658	0.4	FY20 / FY21
Manchester	Potato Wharf	Potato Wharf Block 3 & 4	191	100%	77%	147	0.1	FY22
Chicago	Lakeshore East	Cirrus	350	42.5%	-4	-4	-4	FY22
Sydney	Barangaroo South	One Sydney Harbour Tower 1	317	100.0%	65%	207	1.4	FY24
			Total					Delivery
City	Project	Building	units	Ownership				date5
Residential for rent apartments
Chicago	845 West Madison	845 West Madison	586	37.5%				FY20
London	Elephant Park	East Grove and Park Central North	663	20%				FY21
Chicago	Lakeshore East	Cascade	503	42.5%				FY22

Closing presales balance as at 31 December 2019.
Subject to change in delivery program. 3. Affordable housing units presold within apartment for rent buildings.
Project information is commercial in confidence. 5. Based on expected completion date of underlying buildings, subject to change in delivery program. Not indicative of cash or profit recognition.

Lendlease HY20 Financial Results / 34

Commercial buildings completion profile

City	Project	Capital model	sqm '0001	Building	Completion date2
Melbourne	Melbourne Quarter	Fund through3	51	Two Melbourne Quarter	FY21
Melbourne	Melbourne Connect	BOOT4	27	Melbourne Connect	FY21
Sydney	Sydney Place5	Joint venture	59	Salesforce Tower	FY22
Kuala Lumpur	The Exchange TRX	Joint venture	122	Retail	FY22
Sydney	Victoria Cross Over Station Development	Joint venture	58	Victoria Cross Over Station Development	FY25
Total			317

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

Lendlease HY20 Financial Results / 35

Conversion of

secured pipeline

Indicative conversion timing[1] of secured commercial pipeline to FY24

City	Project	Buildings	Sector	sqm ‘0002
Melbourne	Melbourne Quarter	1	Office	73

Brisbane	Brisbane Showgrounds	1	Office / Retail	32
Milan	Milano Santa Giulia – Stage 1	2	Office / Retail	46
London	International Quarter London – Stage 1	1	Office / Retail	34
San Francisco	30 Van Ness	1	Office	25
Milan	Milan Innovation District	3	Office / Retail	72
Perth	Waterbank	1	Office / Retail	11
Milan	Milano Santa Giulia – Stage 2	3	Office / Retail	96
London	International Quarter London – Stage 2	1	Office / Retail	74
London	Silvertown Quays – Stage 1	3	Office	36
Chicago	Southbank	1	Office	23
London	Silvertown Quays – Stage 2	5	Office / Retail	23
London	Silvertown Quays – Stage 3	1	Office / Retail	12
Total		24		557

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

Lendlease HY20 Financial Results / 36

Conversion of

secured pipeline

Indicative conversion timing[1] of secured residential for rent pipeline to FY24

Indicative conversion timing1 of secured residential for rent pipeline to FY24
City Project Buildings Sector Units	FY20	FY21 FY22 FY23 FY24
London Elephant Park – Stage 1 1 Residential 118
London The Timberyard, Deptford – Stage 1 1 Residential 251
Chicago Southbank – Stage 1 1 Residential 216
Milan Milan Innovation District 1 Residential 273
London Elephant Park – Stage 2 1 Residential 123
London Silvertown Quays 2 Residential 399
Chicago Southbank – Stage 2 1 Residential 295
London High Road West 1 Residential 412
London The Timberyard, Deptford – Stage 2 1 Residential 189
Total 10 2,276

Subject to approval and contractual conditions.

Lendlease HY20 Financial Results / 37

Communities projects

The expected financial year in which the last land lot will be settled. Based on expected completion of underlying land lots, subject to change in delivery program.
Estimated backlog includes the total number of units in Group owned, Joint Venture and managed projects. The actual number of units for any particular project can vary as planning approvals are obtained.

				Residential	Commercial
		Land payment	Completion	backlog land	backlog
Project	Location	model	date1	lots2	sqm ‘0003
Yarrabilba	QLD	Staged payment	FY47	14,070	2,040
Elliot Springs	QLD	Land management	FY61	10,555	1,050
Springfield Lakes	QLD	Land management	FY27	2,930	13
Shoreline	QLD	Land management	FY34	2,910	103
Calderwood Valley	NSW	Land management	FY35	3,475	156
Figtree Hill	NSW	Staged payment	FY34	1,590	241
Bingara Gorge	NSW	Land management	FY28	1,160	79
St Marys - Jordan Springs	NSW	Upfront payment	FY23	845	296
The New Rouse Hill	NSW	Land management	FY21	485	-
Werrington	NSW	Upfront payment	FY23	360	31
Atherstone	VIC	Land management	FY27	2,685	52
Harpley	VIC	Land management	FY29	2,265	383
Aurora	VIC	Staged payment	FY28	1,930	86
Blakes Crossing	SA	Upfront payment	FY21	85	10
Alkimos	WA	Land management	FY29	1,185	22
Alkimos Vista	WA	Land management	FY26	535	-
Horizon Uptown	Americas	Upfront payment	FY30	1,459	581
Other communities				1	-
Total communities				48,525	5,143

Net developable land in relation to masterplanned urban communities. The actual land area for any particular project can vary as planning approvals are obtained.

Lendlease HY20 Financial Results / 38

Development deal structuring tailored to local market

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

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

Lendlease HY20 Financial Results / 39

Land payment models[1]

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

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

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

Southbank, Chicago

Construction Segment

Lendlease HY20 Financial Results / 41

Earnings drivers - Construction

EBITDA margin target 2-3%; Backlog $14.2b

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Construction Non Core
Australia Asia Europe Americas Australia
$1.9b $0.1b $0.4b $1.9b $1.7b
H2 FY20 25% H2 FY20 33% H2 FY20 37% H2 FY20 28% H2 FY20 27%
FY21 32% FY21 56% FY21 45% FY21 32% FY21 33%
Post FY21 43% Post FY21 11% Post FY21 18% Post FY21 40% Post FY21 40%
$6.7b $0.8b $1.4b $5.3b $5.8b
Region
6 months
Revenue last
Backlog realisation
Backlog
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Lendlease HY20 Financial Results / 42

Construction HY20

Overview

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

Drivers[2]

Revenue of $4.3b, EBITDA of $101m
Activity on integrated projects recognised in Development segment in HY20 vs Construction segment in prior corresponding period resulting in a partial impact on EBITDA
EBITDA margin 2.3%, up from 2.1%
Solid project level performance across the portfolio
New work secured of $3.1b, down from $4.3b
Australia $1.9b from $2.2b: higher base of project wins in HY19. Key projects secured included: Victoria Cross Over Station Development, HMAS Watson Redevelopment - Delivery Phase, 140 Lonsdale Street, Curtin University School of Design and Built Environment
Americas $1.0b from $1.8b: lower activity in the region including some project delays

Performance		HY19	HY20
EBITDA mix	%	18	16
EBITDA margin	%	2.1	2.3
New work secured	$b	4.3	3.1
Backlog	$b	14.8	14.2

Outlook

Backlog revenue of $14.2b Book to bill ratio of 0.7
- Diversified by sector, client and target market/geography
- Major project[3] sector exposures: Commercial 29%, Residential 20%, Defence 18%, Social Infrastructure 11%
- Australia $6.7b: Crown Sydney Hotel Resort, Randwick Campus Redevelopment – IASB, HMAS Cerberus - Delivery Phase, Sydney Place
- Americas $5.3b: Jacob K. Javits Convention Center
Backlog realisation:
- H2 FY20: 28%
- FY21: 34%
- Post FY21: 38%
Preferred bidder status of c.$10b including
From external clients.
Comparative period the half year ended 31 December 2018.
Includes all Construction projects with backlog greater than $100m, which represents 77% ($11.0b) of secured backlog.
Australia: Tindal Stage 6 Redevelopment, One Sydney Harbour, Tweed Valley Hospital
Americas: mix of residential and commercial projects across target cities
Asia: The Exchange TRX – Residential and Hotel Europe: Richmond House and Glen Parva

Lendlease HY20 Financial Results / 43

Construction earnings

EBITDA ($m)

EBITDA margin

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HY19 HY20 HY19 HY20
3.9%
111 3.2% 3.4%
3.0%
101
2.1% 2.3%
1.8% 1.7%
1.0%
64
59
(3.3%)
32
24
19
14
4
(4)
Australia Asia Europe Americas Total Australia Asia Europe Americas Total
EBITDA Europe (£m [1] ) EBITDA Americas (US$m)
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22
17
10
8
HY19 HY20 HY19 HY20
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Major currency in region.

Lendlease HY20 Financial Results / 44

Construction backlog

Includes all Construction projects with backlog greater than $100m, which represents 77% ($11.0b) of secured backlog.

Backlog ($b)

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15.2 15.7 15.2 15.6
14.2
FY16 FY17 FY18 FY19 HY20
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HY20 backlog by client

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Lendlease Corporate Government
18%
40%
Major Project [1]
Backlog
Revenue
42%
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HY20 backlog by region

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Australia Asia Europe Americas
37%
$14.2b 47%
10%
6%
HY20 backlog by sector
Commercial Residential Defence
Social Infrastructure Transport Hotel/Entertainment
Other
9% [4%]
29%
9%
Major Project [1]
Backlog
11%
Revenue
20%
18%
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Lendlease HY20 Financial Results / 45

Construction backlog by region

Group ($b)

Australia ($b)

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3.1 (4.3) 1.9 (1.9)
15.6
14.8 (0.2) 14.2 6.6 6.9 (0.2) 6.7
Book to bill¹: 0.7 Book to bill¹: 1.0
HY19 FY19 New work Revenue FX and HY20 HY19 FY19 New work Revenue Other HY20
secured realised Other secured realised
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Europe ($b)

Americas ($b)

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0.1 (0.4) 1.0 (1.9)
1.7
6.2 6.2
- 1.4 - 5.3
1.2
Book to bill¹: 0.2 Book to bill¹: 0.5
HY19 FY19 New work Revenue FX and HY20 HY19 FY19 New work Revenue FX and HY20
secured realised Other secured realised Other
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Ratio calculated as new work secured over revenue realised to the nearest million.

Lendlease HY20 Financial Results / 46

Australia: Major Projects[1,2]

Disclosure of major projects is subject to client approval. This could impact the projects available for disclosure.
Backlog revenue as at 31 December 2019 for the projects listed totals $5.2b, representing 78% of total Australia backlog revenue.
Contract types are Managing Contractor (MC), Design and Construct (D&C), and Construction Management (CM).
Contract value for the project as approved by the client for disclosure. Where Lendlease is in a joint venture, it is the Lendlease share.
Based on expected completion date of underlying buildings, subject to change in delivery program.
Excludes new commercial buildings, pedestrian connections and retail space as these are commercial in confidence.
Contract value is subject to commercial in confidence and not available for disclosure.

		Contract	Contract	Secured	Completion
Project	Location	type3	value4 ($m)	date	date5	Sector
Crown SydneyHotel Resort	NSW	MC	1,081.7	FY15	FY21	Hotel/Entertainment
SydneyPlace	NSW	D&C	713.0	FY19	FY22	Commercial
AIR 7000 Phase 2B	SA	MC	485.0	FY16	FY21	Defence
Osborne Naval ShipbuildingProject(Surface Ships)	SA	MC	480.0	FY18	FY20	Defence
SydneyMetro Victoria Cross Integrated Station Development	NSW	D&C	465.5	FY19	FY24	Transport
New Air Combat Capability- RAAF Tindal	NT	MC	449.8	FY16	FY20	Defence
HMAS Cerberus - DeliveryPhase	VIC	MC	426.8	FY18	FY25	Defence
Victoria Cross Over Station Development	NSW	D&C	410.0	FY20	FY25	Commercial
HMAS Watson Redevelopment - DeliveryPhase	NSW	MC	388.0	FY20	FY27	Defence
SydneyMetro Martin Place Integrated Station Development	NSW	D&C	378.66	FY19	FY24	Transport
ADF Air Traffic Control Complex Infrastructure Project	National	MC	377.3	FY16	FY21	Defence
Melbourne Connect	VIC	D&C	359.1	FY18	FY21	Other
130 Lonsdale Street	VIC	D&C	349.1	FY18	FY20	Commercial
MelbourneQuarter - Two MelbourneQuarter	VIC	D&C	332.0	FY18	FY21	Commercial
Randwick Campus Redevelopment – IASB	NSW	D&C	309.5	FY18	FY22	Social Infrastructure
MelbourneQuarter - East Tower	VIC	D&C	276.5	FY18	FY20	Residential
Stage 2 Garden Island Critical Works DeliveryPhase	NSW	MC	268.3	FY19	FY24	Defence
Growler Airbourne Attack FacilityPhase 1 & 2 Project	QLD/NT	MC	254.6	FY16	FY20	Defence
Stage 1 Garden Island DeliveryPhase	NSW	MC	238.8	FY18	FY21	Defence
Joan Kirner Women's and Children's Hospital Projects	VIC	MC	236.6	FY16	FY21	Social Infrastructure
BaptistCare SAHF	NSW	D&C	196.2	FY17	FY21	Residential
Gold Coast Airport,Southern Terminal Expansion	QLD	D&C	195.7	FY19	FY21	Transport
Goulburn ValleyHealth Shepparton Redevelopment	VIC	MC	193.0	FY18	FY22	Social Infrastructure
Delamere Air Weapons Range & Growler Mobile Threat Training Emitter	NT	MC	191.5	FY17	FY20	Defence
One SydneyHarbour Basement	NSW	CM	166.0	FY19	FY21	Other
Melbourne Park Redevelopment Stage 3	VIC	D&C	166.0	FY19	FY21	Social Infrastructure
Monash UniversityTechnologyEducation Building	VIC	D&C	156.3	FY19	FY20	Social Infrastructure
140 Lonsdale Street	VIC	D&C	155.8	FY20	FY23	Commercial
Curtin UniversitySchool of Design and Built Environment	WA	D&C	101.2	FY20	FY21	Social Infrastructure
Silverwater Correctional FacilityExpansion	NSW	D&C	n/a7	FY18	FY21	Social Infrastructure

Lendlease HY20 Financial Results / 47

Asia, Europe and Americas: Major Projects[1,2]

Disclosure of major projects is subject to client approval. This could impact the projects available for disclosure.
Backlog revenue as at 31 December 2019 for the projects listed totals $0.6b (Asia), $1.1b (Europe) and $0.5b (Americas), representing 75% (Asia), 79% (Europe) and 9% (Americas) of total backlog revenue for these regions.
Contract types are Managing Contractor (MC), Design and Construct (D&C), Construction Management (CM), Lump Sum (LS) and Guaranteed Minimum Price (GMP).

		Contract	Contract	Secured	Completion
Project	Location	type3	value4 ($m)	date	date5	Sector
Asia
The Exchange TRX - Retail	Kuala Lumpur	MC	534.8	FY18	FY22	Commercial
Ardor Gardens	Shanghai, China	CM	207.7	FY19	FY22	Residential
Europe
Perry Barr Residential Scheme	Birmingham	MC	614.6	FY19	FY22	Social Infrastructure
Elephant Park - Park Central North	London	D&C	294.3	FY18	FY21	Residential
1 Triton Square	London	D&C	273.2	FY17	FY21	Commercial
Elephant Park - East Grove	London	D&C	250.4	FY18	FY21	Residential
Google UK HQ (formerly Google European HQ)	London	CM	204.8	FY18	FY22	Commercial
Manchester New Square	Manchester	D&C	156.3	FY18	FY21	Residential
St John's Manchester Goods Yard	Manchester	D&C	147.2	FY19	FY21	Commercial
The Timberyard, Deptford - Cedarwood Square	London	D&C	125.5	FY17	FY20	Residential
Oxford House	London	D&C	122.0	FY19	FY21	Commercial
Americas
Jacob K. Javits Convention Center	New York	LS	880.1	FY17	FY21	Hotel/Entertainment
New York Methodist Hospital	New York	CM	452.0	FY16	FY20	Social Infrastructure
Clippership Wharf	Boston	GMP	318.0	FY16	FY21	Residential
Half and N Street	Washington, D.C.	GMP	178.7	FY17	FY20	Residential

Contract value for the project as approved by the client for disclosure. Where Lendlease is in a joint venture, it is the Lendlease share.
Based on expected completion date of underlying buildings, subject to change in delivery program.

313@somerset, Singapore

Investments Segment

Lendlease HY20 Financial Results / 49

Earnings drivers - Investments

ROIC target 8-11%[1] ; Invested capital $3.9b

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Ownership Earnings Operating Earnings
Capital intensive activities Capital light activities
Co-investment Retirement US Military US Telco Funds Retail and Military
positions in Living Housing Infrastructure Management Office Asset Housing
managed funds Platform Management
$13.3b AUM
$1.9b $1.4b $209m $256m $36.9b FUM $16.4b AUM 51,789 units
Property and
Funds development
Asset and
Distributions Equity Equity management management
Income and property
and capital investment investment fees fees
capital growth management
growth returns returns
fees
% of FUM % of value
driver
Asset
Number of
High quality Occupancy performance,
Occupancy operators per
assets, rate, turnover leasing and
rate, growth tower, lease FUM growth Rent growth
diversified rate, growth development
rate, discount term, growth and opex and opex
across sectors rate, discount activity, AUM
rate and opex rate and
and geography rate and opex growth and
discount rate
opex
FUM / Assets
Invested capital
Returns and Metrics Returns and Metrics
Value drivers Value drivers
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Through-cycle target based on rolling three to five year timeline.

Lendlease HY20 Financial Results / 50

Investments HY20

Comparative period the half year ended 31 December 2018.

Overview

Owns and/or manages investments including a leading investment management platform and also includes the Group’s ownership interests in co-investments, Retirement and US Military Housing
Financial returns include fund and asset management fees, and yields and capital growth on ownership interests

Drivers[1]

Operating earnings $120m
FUM growth of 8% driving higher base fees
Significant performance fee post completion of Paya Lebar Quarter project
Retail and Office AUM of $16.4b, up 23%
US Military Housing AUM of $13.3b, steady on prior
Income from US telco portfolio
Ownership earnings $135m
Co-investments
Lower income from Australian portfolio following divestments
Lower co-investment revaluations in the period
Retirement
Lower returns - 14% increase in resales across the portfolio offset by lack of price growth and subdued half for development
Equity returns on US Military Housing portfolio
Profit on establishment of Global Commercial REIT

Performance		HY19	HY20
Core business EBITDA mix	%	42	41
ROIC	%	13.6	10.7
Invested capital	$b	3.4	3.9
Co-investment revaluations	$m	77	19
Co-investment revaluations / Core business operatingEBITDA	%	11.9	3.0

Outlook

Well positioned to deliver future recurring earnings
• Integrated business model key source of growth with c.$53b investment grade assets to be created from development pipeline[2]
• Operating earnings
- FUM of $36.9b, c.150 institutional investors
- Scale platforms in office and retail
- Building scale in residential for rent asset class
- c.$3.1b of additional secured future FUM across the Group’s development pipeline
- Significant opportunities from the remaining development pipeline
- $16.4b Retail and Office AUM
- $13.3b US Military Housing AUM
Ownership earnings
- $1.9b co-invested in funds, capital partner alignment $1.4b of capital in retirement investment
- $0.7b of other income producing assets including: Equity in US Military Housing US telecommunications portfolio
Subject to approval and contractual conditions.

Lendlease HY20 Financial Results / 51

Investments earnings / ownership

Returns derived from co-investments, the Group’s Retirement investment, US Military Housing equity investment and other investments.
Earnings primarily derived from the investment management platform and the management of US Military Housing operations.
The Group’s assessment of market value of ownership interests. Total invested capital in the segment of $3.9b in HY20.

EBITDA by region ($m)

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HY19 HY20
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273
255
199
118
109
33 31
23
10 5
Australia Asia Europe Americas Total
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Investments[3] by product ($b)

Co-investments Retirement US Military Housing Other

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3.6 3.7 4.0
8%
10%
12%
6% 6% 5%
38% 38% 36%
48% 46% 47%
HY19 FY19 HY20
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Investments EBITDA by activity ($m)

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HY19 HY20
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203
135
120
70
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Ownership interests¹

Operating earnings²

Investments[3] by region ($b)

Australia Asia Europe Americas

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3.6 3.7 4.0
10% 11% 12%
11% 1% 2%
19%
24%
79%
69%
62%
HY19 FY19 HY20
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Lendlease HY20 Financial Results / 52

Funds Under Management[1] (FUM)

The Group’s assessment of market value. 2. Compound Annual Growth Rate.

FUM ($b)

CAGR² of 13.6%

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36.9
35.2
30.1
26.1
23.6
FY16 FY17 FY18 FY19 HY20
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HY20 FUM by asset class

HY20 FUM by region

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Retail Office Industrial Residential Other
[3%]
3% [4%]
39%
$36.9b
51%
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Australia Asia Europe Americas
2%
5%
25%
$36.9b
68%
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Lendlease HY20 Financial Results / 53

FUM[1] by region

Group ($b)

Australia ($b)

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2.6 (1.2) 0.8 (0.8)
0.2 25.1
0.1 0.2 36.9 24.8 0.1
24.1
35.2
34.1
HY19 FY19 Additions Divest- Revaluations FX and HY20 HY19 FY19 Additions Divest- Revaluations Other HY20
ments Other ments
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Asia ($b)
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Europe ($b)

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1.6 (0.4)
-
(0.1) 9.3
8.2 1.6 0.1 - - 0.1 1.7
8.0 1.5
HY19 FY19 Additions Divest- Revaluations FX and HY20 HY19 FY19 Additions Divest- Revaluations FX and HY20
ments Other ments Other
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The Group's assessment of market value.

Lendlease HY20 Financial Results / 54

FUM[1] by region

The Group's assessment of market value.

Australia FUM	Fund type	Asset class	FY19($b)	HY20($b)
Managed Investment Mandates	Core	Various	4.4	5.2
Australian Prime PropertyFund Commercial	Core	Office	5.1	5.1
Australian Prime PropertyFund Retail	Core	Retail	5.7	4.9
Lendlease International Towers SydneyTrust	Core	Office	4.6	4.7
Lendlease One International Towers SydneyTrust	Core	Office	2.7	2.8
Australian Prime PropertyFund Industrial	Core	Industrial	1.0	1.1
Lendlease Sub Regional Retail Fund	Core	Retail	0.6	0.6
Lendlease Public Infrastructure Investment Company	Core	Social Infrastructure	0.4	0.4
Lendlease Real Estate Partners New Zealand	Core	Retail	0.3	0.3
Total Australia			24.8	25.1
Asia FUM	Fund type	Asset class	FY19($b)	HY20($b)
Paya Lebar Quarter	Value Add	Retail and Office	3.3	3.6
Lendlease Asian Retail Investment Fund	Core	Retail	2.8	2.1
ParkwayParade PartnershipLimited	Core Plus	Retail	1.5	1.5
Lendlease Global Commercial REIT	Core	Retail and Office	-	1.5
Lendlease Jem Partners Fund Limited	Core	Retail	0.6	0.6
Total Asia			8.2	9.3
Europe FUM	Fund type	Asset class	FY19($b)	HY20($b)
Lendlease Retail LP	Core	Retail	1.2	1.1
Lendlease Residential Investment Partnership	Core	Residential	0.3	0.6
Total Europe			1.5	1.7
Americas FUM	Fund type	Asset class	FY19($b)	HY20($b)
Lendlease Americas Residential Partnership	Value Add	Residential	0.7	0.8
Total Americas			0.7	0.8

Lendlease HY20 Financial Results / 55

Major fund summary[1]

HY20 funds management platform

							ARIF7 3
		APPFR2	APPFC3	APPFI4	LLITST5	LLOITST6	(Jem)	PPPL8	LLGCREIT9	LLRP10
Total assets	$b	4.9	5.1	1.1	4.7	2.8	1.8	1.5	1.5	1.1
Gearing	%	14.8	5.5	8.3	13.2	18.2	40.2	35.7	36.4	-
Co-investment	%	1.7	8.2	10.5	3.9	2.5	20.1	6.1	24.3	-
Co-investment	$m	67	382	99	156	56	201	44	256	-
Region		Aus	Aus	Aus	Aus	Aus	Asia	Asia	Asia	Eur
Asset class		Retail	Office	Industrial	Office	Office	Retail	Retail	Retail and Office	Retail
Number of assets	no.	10	21	35	4	1	1	1	4	2
Occupancy	%	97.5	96.3	96.8	95.1	100.0	99.7	99.3	99.9	92.9
Weighted avg. caprate	%	5.1	4.8	6.3	4.6	4.6	4.3	5.0	4.7	5.4

Does not comprise Lendlease’s complete Funds Management Platform.
Australian Prime Property Fund Retail.
Australian Prime Property Fund Commercial. 4. Australian Prime Property Fund Industrial. 5. Lendlease International Towers Sydney Trust (Barangaroo South T2 and T3, International House and Towns Place Car Park).
Lendlease One International Towers Sydney Trust (Barangaroo South T1).
Lendlease Asian Retail Investment Fund.
Parkway Parade Partnership Limited. 9. Lendlease Global Commercial REIT. 10. Lendlease Retail LP.

Lendlease HY20 Financial Results / 56

Investments[1]

The Group's assessment of market value of ownership interests.
313@somerset retail centre was sold to the Lendlease Global Commercial REIT during HY20.

Australia co-investments		HY20 Lendlease interest	FY19($m)	HY20($m)
Australian Prime PropertyFund Commercial		8.2%	369	382
Lendlease International Towers SydneyTrust		3.9%	238	156
Australian Prime PropertyFund Industrial		10.5%	96	99
Craigieburn Central		25.0%	82	77
Australian Prime PropertyFund Retail		1.7%	74	67
Lendlease One International Towers SydneyTrust		2.5%	54	56
Lendlease Public Infrastructure Investment Company		10.0%	40	40
Lendlease Sub Regional Retail Fund		9.9%	36	34
Lendlease Real Estate Partners New Zealand		5.3%	11	10
Other			1	-
Total Australia			1,001	921
Asia co-investments		HY20 Lendlease interest	FY19($m)	HY20($m)
Paya Lebar Quarter		30.0%	284	412
Lendlease Global Commercial REIT		24.3%	-	256
Lendlease Asian Retail Investment Fund (ARIF)
ARIF 1 (313@somerset)2		-	44	-
ARIF 2 (Setia City Mall)		38.6%	30	32
ARIF 3(Jem)		20.1%	201	201
ParkwayParade PartnershipLimited		6.1%	43	44
313@somerset2		-	99	-
Total Asia			701	945
Americas			FY19	HY20
US MilitaryHousing,invested equity	$m		211	209
Telecommunications assets,invested equity	$m		203	256
Telecommunications towers	no.		308	372

Lendlease HY20 Financial Results / 57

Assets Under Management (AUM)[1] by region

Retail and Office

Retail and Office
	HY20 GLA2
	sqm '000	FY19 ($b)	HY20 ($b)
Australia	774.8	7.5	6.9
Asia	493.1	7.2	8.8
Europe	141.7	0.7	0.7
Total	1,409.6	15.4	16.4

HY20
					Avg portfolio life
	AUM ($b)	Housing units	Lodging units	Total units	(years)
Total	13.3	39,358	12,431	51,789	36

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

Lendlease HY20 Financial Results / 58

Retirement summary

Value drivers1		HY19	HY20
Long term growth rate	%	3.5	3.5
Discount rate	%	12.3	12.3
Average length of stay	years	11	11
Number of established units	no.	12,782	12,825
Units resold	no.	402	458
Development
Pipeline2	no.	4,038	3,786
Pipeline	$b	1.6	1.9
Sales/Settlements	no.	76	55
Sales/Settlements	$m	39.5	27.6

Investment ($m)

==> picture [322 x 152] intentionally omitted <==

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

1,427
1,397
1,359
HY19 FY19 HY20
----- End of picture text -----

HY20 units and villages by state[1]

==> picture [322 x 170] intentionally omitted <==

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

Units Villages
26
17
12
10
4,088
3,351
2,932
4
3
1,636
529
289
VIC NSW QLD WA SA ACT
----- End of picture text -----

100% of Retirement Living business. 2. Includes aged care beds licences.

Lendlease HY20 Financial Results / 59

Important notice

This document (including the appendix) has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) (Lendlease) in good faith. Neither Lendlease (including any of its controlled entities), nor Lendlease Trust (together referred to as the Lendlease Group) makes any representation or warranty, express or implied, as to the accuracy, completeness, adequacy or reliability of any statements, estimates, opinions or other information contained in this document (any of which may change without notice). To the maximum extent permitted by law, Lendlease, the Lendlease Group and their respective directors, officers, employees and agents disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence) for any direct or indirect loss or damage which may be suffered, howsoever arising, through use or reliance on anything contained in or omitted from this document.

This document has been prepared without regard to the specific investment objectives, financial situation or needs of any recipient of this presentation. Each recipient should consult with, and rely solely upon, their own legal, tax, business and/or financial advisors in connection with any decision made in relation to the information contained in this presentation.

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

Lendlease Group’s statutory results are prepared in accordance with International Financial Reporting Standards (IFRS). This document also includes material that is not included in Lendlease Group’s statutory results and contains non-IFRS measures. Material that is not included in Lendlease Group’s statutory results has not been subject to audit. Lendlease Group’s auditors, KPMG, performed agreed upon procedures to ensure consistency of this document with Lendlease Group’s statutory results, other publicly disclosed material and management reports.

A reference to HY20 refers to the half year period ended 31 December 2019 unless otherwise stated. All figures are in AUD unless otherwise stated.

AI assistant

LENDLEASE GROUP — Interim / Quarterly Report 2020

65243_rns_2020-02-19_cdb35109-8af3-43b5-945e-6f21e510af86.pdf

Lendlease Group 2020 Half Year Results Announcement, Presentation and Appendix

ENDS

Development pipeline increases to $112b, underpins long term growth

For the half year ended 31 December 2019:

Key highlights:

HY20 Key Highlights

HY20 Group Financials

Non core segment Financials

Outlook

ENDS

FOR FURTHER INFORMATION, PLEASE CONTACT:

Authorised for lodgement by the Lendlease Group Disclosure Committee

Fatality

Key metrics

HY20 key achievements

Lendlease Sustainability Framework

Engineering and Services: Progress on exit

HY20 Performance

Securityholder returns[1]

Performance highlights

Development pipeline increases to $112b, underpins long term growth

Executing on our strategy

Urbanisation pipeline ($b)

HY20 urbanisation pipeline

Urbanisation production rate expected to accelerate

Funds Under Management ($b)

Opportunity to double FUM again as pipeline converts

Financial Performance

Financial performance

Adoption of AASB 16 Leases:

Cash flow movements

Cash conversion 5% in HY20

Operating and Investing inflows:

Operating and Investing outflows:

Underlying operating cash flow

Underlying operating cash flow of $4.2b from FY16 to HY20:

HY20 ($m)

FY16 – HY20 ($m)

Financial strength

Capital structure

Distribution policy

Debt metrics

Funding and liquidity

Invested capital: Development

Invested capital: Investments

Portfolio Management Framework

EBITDA mix

Invested capital

Returns

Development – ROIC[3,4]

Construction – EBITDA margin[5]

Investments – ROIC[3,4]

Core financial returns

Operational Update

Apartments

Performance

Outlook

Apartment settlements and completions

Commercial

Performance

Outlook

Commercial building commencements

Communities settlements

Performance and outlook

Communities

Telecommunications Infrastructure

Communities settlements

Performance and outlook[1]

Backlog revenue ($b)

HY20[3] backlog by sector and client

Operating earnings

Performance and outlook[1]

Operating EBITDA ($m)

Ownership earnings

Performance and outlook[1]

Co-investments :

Retirement Living :

LENDLEASE GROUP Interim / Quarterly Report 2020