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LENDLEASE GROUP Interim / Quarterly Report 2021

Feb 21, 2021

65243_rns_2021-02-21_7c89d67c-fc6a-4e76-bd70-1781f00178b8.pdf

Interim / Quarterly Report

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22 February 2021
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Lendlease Group 2021 Half Year Financial and Operational Metrics

Lendlease Group today announced its results for the half year ended 31 December 2020. Attached is a data file comprising financial and operational metrics covering FY17 – HY21.

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

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

ENDS

For further information, please contact:

Investors: Justin McCarthy Mob: +61 422 800 321

Media: Stephen Ellaway 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

Core Business

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Core Business
FY17 FY18 FY19 FY20 1H21
Unit
Profit and Loss Summary - Core Business
Revenue A$m 14,382.6 13,287.9 13,414 10,405 4,376
Segment EBITDA
Development A$m 552.4 673.2 793 322 244
Construction A$m 271.4 295.8 211 101 104
Investments1 A$m 433.3 368.9 278 300 121
Total Segment EBITDA1 A$m 1,257.1 1,337.9 1,282 723 469
Group Services A$m (154.4) (140.1) (140) (129) (54)
Group Treasury A$m (29.8) (35.4) (25) (29) (10)
Operating EBITDA1 A$m 1,072.9 1,162.4 1,117 565 405
Depreciation & Amortisation A$m (76.5) (82.1) (94) (160) (75)
Operating EBIT1 A$m 996.4 1,080.3 1,023 405 330
Net Finance Revenue/(Costs) A$m (97.0) (72.5) (125) (153) (67)
Operating PBT1 A$m 899.4 1,007.8 898 252 263
Income Tax Benefit/(Expense)1 A$m (234.6) (298.9) (266) (46) (58)
External non controlling interests A$m (0.1) (0.8) - - -
Operating PAT1 A$m 664.7 708.1 632 206 205
Reconciliation Operating to Statutory Profit after Tax1
Core Operating Profit After Tax A$m 664.7 708.1 632 206 205
Add / (less): Investment properties revaluations A$m (5.0) 5.0 25 (19) -
Add / (less): Financial assets revaluations A$m 54.0 225.0 100 (10) 5
Add / (less): Equity accounted investments revaluations A$m 12.0 22.0 47 (72) (12)
Add / (less): Impairment losses relating to intangibles A$m - - - (9) -
Total Non Operating Items (post-tax) A$m 61.0 252.0 172 (110) (7)
Non Core Profit after Tax A$m 32.9 (167.3) (337) (406) (2)
NPAT attributable to securityholders A$m 758.6 792.8 467 (310) 196
Returns and Key Performance Measures - Core Business1
Number of equivalent full time employees no. 8,801 8,854 8,787 8,398 8,054
(EPS) Core Operating Earnings per stapled security1,2 cents 121.4 111.5 34.2 29.8
(ROE) Core Operating PAT to average securityholders' equity1 % 11.3% 10.1% 3.1% 5.9%
Development ROIC % 13.7% 13.4% 11.6% 4.7% 7.2%
Investments ROIC1 % 9.8% 7.6% 5.7% 5.8% 5.3%
Construction EBITDA Margin % 2.6% 3.1% 2.2% 1.3% 3.0%
EBITDA Mix by Segment - % Operating EBITDA
Development1 % 44% 50% 62% 45% 52%
Construction1 % 22% 22% 16% 14% 22%
Investments1 % 34% 28% 22% 41% 26%
Key Platform Value Drivers
Development Pipeline A$b 49.3 71.1 76.1 113.0 109.5
Construction Backlog A$b 15.7 15.2 15.6 13.9 14.5
Funds Under Management A$b 26.1 30.1 35.2 36.0 37.9
Invested Capital by Segment & Region
Development A$b 3.0 4.3 4.8 4.8 5.0
Investments A$b 3.3 3.3 3.6 3.7 3.6
Australia A$b 4.7 4.4 3.6 3.4 4.0
Asia A$b 0.7 0.9 1.2 1.4 1.3
Europe A$b 0.8 1.2 1.7 1.8 2.1
Americas A$b 0.5 1.0 1.4 1.5 1.2
Total Invested Capital3 A$b 7.0 7.6 7.8 8.2 8.8
End of sheet

Group Summary

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Group Summary
FY17 FY18 FY19 FY20 1H21
Unit
Returns and Key Performance Measures - Total Group
NPAT attributable to securityholders A$m 758.6 792.8 467 (310) 196
(EPS) Earnings per stapled security on PAT3 cents 130.1 136.1 82.4 (51.4) 28.5
Distribution per stapled security cents 66.0 69.0 42.0 33.3 15.0
Distribution Payout ratio4 % 51% 50% 51% 50%
Securities on issue m 583 574 564 688 688
Weighted average number of securities5 m 583 583 567 603 688
Net asset backing per security A$ 10.58 11.17 11.27 10.08 10.14
Net tangible asset backing per security A$ 8.15 8.70 8.69 7.96 8.05
Security price at period end A$ 16.65 19.81 13.00 12.37 13.10
Number of securityholders no. 58,642 55,648 62,454 66,161 68,673
Effective Tax Rate6 % 24.7% 25.6% 24.7% 20.0%
FX Rates
Income Statement - Period Average
USD A$/USD 0.76 0.77 0.71 0.67 0.73
GBP A$/GBP 0.60 0.57 0.55 0.53 0.55
SGD A$/SGD 1.05 1.04 0.97 0.93 0.99
Balance Sheet - Period End
USD A$/USD 0.77 0.74 0.70 0.69 0.77
GBP A$/GBP 0.59 0.56 0.55 0.56 0.56
SGD A$/SGD 1.06 1.01 0.95 0.96 1.02
Corporate Strength - Total Group
Total tangible assets A$m 19,439.1 15,542.2 15,721 16,291 15,019
Cash A$m 1,249.2 1,177.1 1,290 1,111 899
Borrowings A$m 2,152.4 2,358.5 2,715 2,395 2,718
Operating cash flow A$m 146.0 72.8 60 137 (539)
Investing cash flow A$m 70.1 221.8 167 (369) (499)
Total Operating and Investing cash flow A$m 216.1 294.6 227 (232) (1,038)
Financing cash flow A$m 8.5 (397.8) (128) 495 366
Total cash flow A$m 224.6 (103.2) 99 263 (672)
Ratio of current assets to current liabilities times 0.6x 1.0x 0.9x 1.1x 0.9x
Ratio of current assets to current liabilities (excluding resident and accommodation bond liabilities) times 1.0x 1.0x 0.9x 1.1x 0.9x
Net debt to total tangible assets, less cash7 % 5.0% 8.2% 9.9% 5.7% 12.9%
Interest cover8 times 10.3x 10.7x 8.8x 2.8x 6.7x
Average cost of debt % 4.9% 4.8% 4.0% 3.4% 3.3%
Average debt maturity years 5.1 4.6 4.8 4.2 4.3

Group Summary

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Group Summary
FY17 FY18 FY19 FY20 1H21
Unit
Balance Sheet - Total Group
Statement of Financial Position
Current Assets
Cash and cash equivalents A$m 1,249.2 1,177.1 1,290 1,111 899
Loans and receivables A$m 2,749.2 2,670.2 2,050 1,667 1,638
Inventories A$m 2,152.0 2,369.2 2,238 2,256 2,334
Current tax assets A$m - - 11 27 21
Other financial assets A$m 33.0 6.7 97 16 22
Other assets A$m 77.9 91.0 70 59 144
Disposal Group assets held for sale A$m 841 -
Total current assets A$m 6,261.3 6,314.2 5,756 5,977 5,058
Non Current Assets
Loans and receivables A$m 507.7 787.8 688 744 966
Inventories A$m 2,975.4 3,177.1 3,345 3,113 2,844
Equity accounted investments A$m 834.6 2,626.6 3,452 3,671 3,716
Investment properties A$m 6,967.4 278.2 501 658 419
Other financial assets A$m 1,203.3 1,547.8 1,103 1,076 1,024
Deferred tax assets A$m 129.4 120.0 101 141 105
Property, plant and equipment A$m 425.8 464.7 548 693 641
Intangible assets A$m 1,415.1 1,421.4 1,457 1,457 1,436
Defined benefit plan asset A$m 64.3 154.7 140 156 190
Other assets A$m 69.9 71.1 87 62 56
Total non current assets A$m 14,592.9 10,649.4 11,422 11,771 11,397
Total assets A$m 20,854.2 16,963.6 17,178 17,748 16,455
Current Liabilities
Trade and other payables A$m 5,578.8 5,769.5 5,724 4,496 4,382
Resident liabilities A$m 4,573.0 - - - -
Provisions A$m 285.6 329.9 332 343 336
Current tax liabilities A$m 6.4 10.4 - - -
Borrowings and financing arrangements A$m 291.9 474.8 225 134 535
Other financial liabilities A$m 22.0 3.4 6 10 11
Disposal Group liabilities held for sale A$m 670 -
Total current liabilities A$m 10,757.7 6,588.0 6,287 5,653 5,264
Non Current Liabilities
Trade and other payables A$m 1,772.1 1,530.7 1,401 2,405 1,587
Provisions A$m 58.4 67.8 45 62 63
Borrowings and financing arrangements A$m 1,860.5 1,883.7 2,490 2,261 2,183
Defined benefit plan liability A$m - - - - -
Other financial liabilities A$m 0.8 0.7 1 1 6
Deferred tax liabilities A$m 238.2 478.5 597 434 376
Total non current liabilities A$m 3,930.0 3,961.4 4,534 5,163 4,215
Total liabilities A$m 14,687.7 10,549.4 10,821 10,816 9,479
Net Assets A$m 6,166.5 6,414.2 6,357 6,932 6,976
Equity
Issued capital A$m 1,289.8 1,296.8 1,300 1,889 1,890
Treasury securities A$m (24.7) (44.1) (68) (68) (69)
Reserves9 A$m (15.5) 61.0 105 65 (65)
Retained earnings9 A$m 3,696.8 3,855.1 3,815 3,265 3,452
Total equity attributable to members of Lendlease Corporation Limited A$m 4,946.4 5,168.8 5,152 5,151 5,208
Total equity attributable to unitholders of Lendlease Trust A$m 1,117.0 1,244.5 1,182 1,756 1,745
Total equity attributable to securityholders A$m 6,063.4 6,413.3 6,334 6,907 6,953
External non controlling interests A$m 103.1 0.9 23 25 23
Total equity A$m 6,166.5 6,414.2 6,357 6,932 6,976

Group Summary

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Group Summary
FY17 FY18 FY19 FY20 1H21
Unit
Cash Flow Statement - Total Group
Cash Flows from Operating Activities
Cash receipts in the course of operations A$m 16,254.6 16,354.3 17,026 13,488 5,104
Cash payments in the course of operations A$m (15,928.7) (16,216.4) (16,902) (13,313) (5,534)
Interest received A$m 9.9 13.1 13 16 5
Interest paid in relation to other corporations A$m (120.4) (122.1) (152) (164) (80)
Interest in relation to lease liabilities A$m (25) (10)
Dividends/distributions received A$m 75.4 76.5 105 146 33
Income tax received/(paid) in respect of operations A$m (144.8) (32.6) (30) (11) (57)
Net cash provided by/(used in) operating activities A$m 146.0 72.8 60 137 (539)
Cash Flows from Investing Activities
Sale/redemption of investments A$m 164.9 74.4 571 448 111
Acquisition of investments A$m (257.3) (448.9) (378) (709) (161)
Acquisition of/capital expenditure on investment properties A$m (244.4) (112.4) (53) (57) (70)
Net loan repayments/(drawdowns) from associates and joint ventures A$m 5.7 409.7 (22) (9) (7)
Disposal/acquisition of consolidated entities (net of cash disposed and transaction costs) A$m 548.4 433.6 266 136 (320)
Disposal of property, plant and equipment A$m 13.1 7.9 14 11 2
Acquisition of property, plant and equipment A$m (136.4) (110.3) (165) (112) (22)
Acquisition of intangible assets A$m (23.9) (32.2) (66) (77) (32)
Net cash provided by/(used in) investing activities A$m 70.1 221.8 167 (369) (499)
Cash Flows from Financing Activities
Net proceeds from share issue A$m 1,193 -
Proceeds from borrowings A$m 2,800.6 2,021.0 4,640 4,658 2,128
Repayment of borrowings A$m (2,576.8) (1,870.7) (4,347) (4,970) (1,708)
Dividends/distributions paid A$m (337.9) (372.0) (258) (327) (21)
Proceeds from sale of treasury securities A$m 106.5 - - - -
Payments for on market buyback of stapled securities A$m (178.0) (174) - -
Payments for on market buyback of stapled securities - Dividend Reinvestment Plan A$m (10.1) (11) - -
Other financing activities A$m (20.9) (9.6) - - -
Increase in capital of non controlling interest A$m 37.0 21.6 22 2 1
Repayment of lease liabilities A$m (61) (34)
Net cash provided by/(used in) financing activities A$m 8.5 (397.8) (128) 495 366
Effect of foreign exchange rate movements on cash and cash equivalents A$m 16.2 31.1 14 9 9
Net increase/(decrease) in cash and cash equivalents A$m 240.8 (72.1) 113 272 (663)
Cash and cash equivalents at beginning of financial year A$m 1,008.4 1,249.2 1,177 1,290 1,562
Cash and cash equivalents at end of financial year A$m 1,249.2 1,177.1 1,290 1,562 899
Reconciliation to underlying operating cash flow - Total Group
Net cash provided by/(used in) operating activities A$m 146.0 72.8 60 137 (539)
Less: Interest received A$m (9.9) (13.1) (13) (16) (5)
Add: Interest paid A$m 120.4 122.1 152 189 90
Add: Income tax (received)/paid in respect of operations A$m 144.8 32.6 30 11 57
Interest and tax paid A$m 255.3 141.6 169 184 142
Add: Movement in development properties inventory A$m 438.4 514.5 (277) 74 (249)
Less: Movement in deferred land payments A$m 74.3 99.8 (99) 100 (4)
Net investment into development inventory A$m 512.7 614.3 (376) 174 (253)
Add: Cash proceeds from sell down of development entities A$m 291.8 82.9 266 136 (172)
Add: Realised gains on sale of assets1 A$m 31.8 1.2 20 40 87
Adjustment from investing cash flow1 A$m 323.6 84.1 286 176 (85)
Underlying operating cash flow1 A$m 1,237.6 912.8 139 673 (735)
Group Operating EBITDA1 A$m 1,139.8 944.8 656 70 429
Conversion of underlying operating cash flow to Group Operating EBITDA1,10 % 108.6% 96.6% 21.2% 961.4%

End of sheet

Non Core

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Non Core
FY17 FY18 FY19 FY20 1H21
Unit
Profit and Loss Summary - Non Core1
Revenue A$m 2,288.4 3,284.2 3,141 2,884 843
EBITDA A$m 66.9 (217.6) (461) (495) 24
Depreciation & Amortisation A$m (21.7) (24.5) (28) (84) (31)
EBIT A$m 45.2 (242.1) (489) (579) (7)
Net Finance Revenue/(Costs) A$m 0.4 0.5 - 5 -
PBT A$m 45.6 (241.6) (489) (574) (7)
Income Tax Benefit/(Expense) A$m (12.7) 74.3 152 168 5
PAT A$m 32.9 (167.3) (337) (406) (2)
Returns and Key Performance Measures - Non Core
EBITDA Margin % 2.9% (6.6%) (14.7%) (17.2%) 2.8%
Key Platform Value Drivers
Construction Backlog2 A$b 4.9 5.9 5.4 5.1 2.5
Total Segment - Non Core
New Work Secured2
Engineering A$b 1.0 3.5 2.0 1.0
Services A$b 1.0 0.8 1.0 1.4 0.8
Total A$b 2.0 4.3 3.0 2.4 0.8
Backlog revenue2
Engineering A$b 3.1 4.2 3.8 3.1
Services A$b 1.8 1.7 1.6 2.0 2.5
Total A$b 4.9 5.9 5.4 5.1 2.5
Book to bill
Total ratio 0.9 1.3 1.0 0.8 0.9
Backlog realisation3
Next 12 months % 59% 49% 52% 46% 19%
12 - 24 months % 25% 25% 27% 26% 29%
Beyond 24 months % 16% 26% 21% 28% 52%

End of sheet

Development

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Development
FY17 FY18 FY19 FY20 1H21
Unit
Profit and Loss
Development Revenue A$m 3,433.0 3,204.2 3,355 2,344 766
Australia A$m 3,142.0 2,855.2 2,712 1,198 390
Asia A$m 19.6 67.2 18 13 6
Europe A$m 203.6 199.1 544 969 342
Americas A$m 67.8 82.7 81 164 28
Development EBITDA A$m 552.4 673.2 793 322 244
Australia A$m 497.8 551.3 556 174 173
Asia A$m (13.5) 26.7 121 34 (2)
Europe A$m 68.3 110.4 37 116 83
Americas A$m (0.2) (15.2) 79 (2) (10)
Development PAT A$m 397.8 491.9 554 233 177
Australia A$m 348.1 383.6 395 118 121
Asia A$m (11.9) 15.2 79 18 (3)
Europe A$m 60.2 103.5 27 93 66
Americas A$m 1.4 (10.4) 53 4 (7)
Development ROIC % 13.7% 13.4% 11.6% 4.7% 7.2%
Development Invested Capital A$b 3.0 4.3 4.8 4.8 5.0
Development Pipeline A$b 49.3 71.1 76.1 113.0 109.5
Development Production1 A$b 4.6 4.0 5.6 5.0 1.8
Development Pipeline and Production1
Total pipeline by product A$b 49.3 71.1 76.1 113.0 109.5
Communities A$b 14.7 15.1 14.7 13.9 13.3
Apartments A$b 21.7 31.4
Apartments - for sale A$b 26.7 45.2 42.0
Apartments - for rent A$b 5.9 23.8 24.3
Commercial A$b 12.9 24.5 28.6 29.8 29.9
Infrastructure A$b - 0.1 0.2 0.3 0.0
Total pipeline by region A$b 49.3 71.1 76.1 113.0 109.5
Australia A$b 30.9 29.7 29.3 28.9 28.4
Asia A$b 6.1 6.9 5.0 4.2 4.0
Europe A$b 8.0 29.3 34.1 50.1 49.0
Americas A$b 4.3 5.2 7.7 29.8 28.1
Work in Progress1 by product A$b 12.3 12.2
Communities A$b 0.5 0.4
Apartments - for sale A$b 3.9 4.5
Apartments - for rent A$b 2.2 2.1
Commercial A$b 5.7 5.2
Work in Progress1 by region A$b 12.3 12.2
Australia A$b 6.8 5.7
Asia A$b 1.7 2.3
Europe A$b 1.8 2.2
Americas A$b 2.0 2.0
Development Production1 by product A$b 4.6 4.0 5.6 5.0 1.8
Communities A$b 0.7 1.0 0.6 0.5 0.3
Apartments - for sale A$b 1.7 1.2 1.8 2.3 0.5
Apartments - for rent A$b - - 0.3 0.3 0.4
Commercial A$b 2.2 1.8 2.9 1.9 0.6
Development Production1 by region A$b 4.6 4.0 5.6 5.0 1.8
Australia A$b 4.3 2.6 2.7 1.1 1.3
Asia A$b - - 2.1 1.7 -
Europe A$b 0.3 1.4 0.5 1.1 0.1
Americas A$b - - 0.3 1.1 0.4

Development

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Development
FY17 FY18 FY19 FY20 1H21
Unit
Communities2
Presold no. 3,896 3,231 2,276 1,725 1,482
Remaining no. 53,219 49,102 47,762 45,647 43,697
Total pipeline no. 57,115 52,333 50,038 47,372 45,179
Presold A$b 0.9 0.8 0.6 0.5 0.4
Remaining A$b 13.8 14.3 14.1 13.4 12.9
Total pipeline A$b 14.7 15.1 14.7 13.9 13.3
Urbanisation
Apartments
In delivery - for sale no. 3,177 3,070 1,881 1,418 2,439
In delivery - for rent no. 850 1,513 1,533 1,624 2,502
Remaining no. 18,325 25,917 27,314 53,183 51,700
Total pipeline no. 22,352 30,500 30,728 56,225 56,641
Apartments
In delivery - for sale A$b 3.3 3.2 1.7 2.3 4.5
In delivery - for rent A$b 0.5 1.1 1.1 0.9 2.1
Remaining A$b 17.9 27.1 29.8 65.8 59.7
Total pipeline A$b 21.7 31.4 32.6 69.0 66.3
Apartments Presales A$b 3.9 3.4 1.9 2.4 2.5
Commercial
In delivery sqm '000 537 486 322 376 327
Remaining sqm '000 513 1,516 2,099 2,039 2,000
Total pipeline sqm '000 1,050 2,002 2,421 2,415 2,327
Commercial
In delivery A$b 6.5 7.2 4.9 4.8 5.2
Remaining A$b 6.4 17.3 23.7 25.0 24.7
Total pipeline A$b 12.9 24.5 28.6 29.8 29.9
Major Urbanisation Projects3
Projects no. 13 18 20 21 22
Gateway cities no. 8 10 10 9 10
Regional Summary
Communities pipeline2 no. 57,115 52,333 50,038 47,372 45,179
Australia no. 53,255 49,770 47,700 46,010 43,790
Asia no. - 936 878 - -
Europe no. - 1 1 1 -
Americas no. 3,860 1,626 1,459 1,361 1,389
Communities pipeline2 A$b 14.7 15.1 14.7 13.9 13.3
Australia A$b 14.7 14.3 14.1 13.6 13.1
Asia A$b 0.4 0.4 - -
Europe A$b 0.1 0.1 0.1 0.0
Americas A$b 0.3 0.1 0.2 0.2
Apartments pipeline no. 22,352 30,500 30,728 56,225 56,641
Australia no. 10,128 9,367 7,985 7,661 7,175
Asia no. 2,755 2,755 2,755 3,204 3,204
Europe no. 4,527 14,210 15,394 26,958 26,818
Americas no. 4,942 4,168 4,594 18,402 19,444
Commercial pipeline sqm '000 1,050 2,002 2,421 2,415 2,327
Australia sqm '000 420 395 378 376 326
Asia sqm '000 308 278 192 209 209
Europe sqm '000 302 1,301 1,799 1,779 1,716
Americas sqm '000 20 28 52 51 76
Urbanisation pipeline A$b 34.6 55.9 61.2 98.8 96.2
Australia A$b 16.2 15.4 15.2 15.3 15.3
Asia A$b 6.1 6.5 4.6 4.2 4.0
Europe A$b 8.0 29.2 34.0 50.0 49.0
Americas A$b 4.3 4.8 7.4 29.3 27.9

Development

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Development
FY17 FY18 FY19 FY20 1H21
Unit
Residential for sale Summary
Australian Communities A$m 965.7 857.2 373.0 369.5 203.0
Australian Apartments A$m 235.2 48.0 114.1 1,582.7 314.1
Asia Apartments A$m 228.0 235.5 71.2 166.5 32.7
Europe Communities4 A$m 54.5
Europe Apartments A$m 218.2 237.7 121.1 62.5 77.2
Americas Communities A$m 5.1 - -
Americas Apartments A$m 42.0 127.1 175.3 183.5 47.2
Total Sales A$m 1,689.1 1,505.5 859.8 2,364.7 728.7
Australian Communities A$m 716.1 991.4 560.6 525.7 267.3
Australian Apartments A$m 1,327.3 911.9 1,574.4 241.0 158.7
Asia Apartments5 A$m 608.5 -
Europe Communities4 A$m 54.5
Europe Apartments A$m 489.3 247.0 282.1 476.9 160.0
Americas Communities A$m 5.1 - -
Americas Apartments A$m 208.2 168.6 27.3
Total Settlements6 A$m 2,532.7 2,150.3 2,630.4 2,020.7 667.8
Australian Communities A$m 947.0 812.8 625.2 469.1 404.8
Australian Apartments A$m 2,782.3 1,918.4 458.1 1,794.3 1,948.7
Asia Apartments5 A$m 228.0 463.9 570.9 152.3 175.0
Europe Apartments A$m 849.9 885.3 731.6 343.1 248.1
Americas Apartments A$m 42.0 168.6 150.0 159.4 166.2
Total Presales A$m 4,849.2 4,249.0 2,535.8 2,918.2 2,942.8
Australian Communities no. 4,162 3,247 1,422 1,347 800
Australian Apartments no. 321 64 155 348 69
Asia Apartments no. 210 176 37 242 48
Europe Communities4 no. 1
Europe Apartments no. 215 377 175 43 57
Americas Communities no. 146 - -
Americas Apartments no. 40 60 58 100 16
Total Sales no. 4,948 3,924 1,993 2,080 991
Australian Communities no. 3,060 3,912 2,377 1,898 1,043
Australian Apartments no. 1,807 1,056 1,281 369 225
Asia Apartments5 no. 429 -
Europe Communities4 no. 1
Europe Apartments no. 726 258 296 471 211
Americas Communities no. 146 - -
Americas Apartments no. 46 97 4
Total Settlements6 no. 5,593 5,226 4,146 3,264 1,484
Australian Communities no. 3,896 3,231 2,276 1,725 1,482
Australian Apartments no. 2,793 1,801 675 652 495
Asia Apartments5 no. 210 386 423 236 284
Europe Apartments no. 1,124 1,243 1,013 585 431
Americas Apartments no. 40 100 112 114 126
Total Presales no. 8,063 6,761 4,499 3,312 2,818
Retirement Development2
Settlements6 A$m 81.3 - - - -
Sales A$m 81.3 - - - -
Settlements6 no. 176 - - - -
Sales no. 176 - - - -
Avg price Avg price $'000 462 - - - -

Development

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Development
FY17 FY18 FY19 FY20 1H21
Unit
Residential for rent Summary
Asia A$b 0.5
Europe A$b 0.8 0.8 1.1 1.1
Americas A$b 0.5 0.5 0.7 0.6 0.5
Projects in delivery7 A$b 0.5 1.3 1.5 1.7 2.1
Asia No. units 878
Europe No. units 663 663 904 904
Americas No. units 850 850 870 720 720
Projects in delivery No. units 850 1,513 1,533 1,624 2,502
Americas A$b 0.3 0.8 -
Total Completions7,8 A$b 0.3 0.8 -
Americas no. units 452 870 -
Total Completions8 no. units 452 870 -
Commercial Summary
Australia A$b 2.5 3.0 2.4 3.1 3.4
Asia A$b 3.8 4.0 2.4 1.5 1.3
Europe A$b 0 0.2 0.1 0.2 0.5
Projects in delivery7 A$b 6.5 7.2 4.9 4.8 5.2
Australia sqm '000 197 223 145 208 155
Asia sqm '000 267 237 151 122 122
Europe sqm '000 73 26 26 46 49
Projects in delivery sqm '000 537 486 322 376 327
Australia A$b 2.1 0.7 0.9 0.3 0.6
Asia A$b 2.1 1.1 -
Europe A$b 1.1 - 0.5 -
Total Completions A$b 2.1 1.8 3.0 1.9 0.6
Australia sqm '000 109 63 81 11 51
Asia sqm '000 83 29 -
Europe sqm '000 73 - 26 -
Total Completions sqm '000 109 136 164 66 51

End of sheet

Construction

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Construction
FY17 FY18 FY19 FY20 1H21
Unit
Profit and Loss - Core Business1
Construction Revenue A$m 10,356.1 9,656.2 9,680 7,627 3,440
Australia A$m 4,152.1 3,742.3 4,052 3,217 1,395
Asia A$m 502.6 536.1 401 255 131
Europe A$m 1,117.3 679.5 941 782 441
Americas A$m 4,584.1 4,698.3 4,286 3,373 1,473
Construction EBITDA A$m 271.4 295.8 211 101 104
Australia A$m 134.5 194.5 126 97 57
Asia A$m (0.2) 15.0 (1) (11) 11
Europe A$m 31.7 22.7 40 (9) 15
Americas A$m 105.4 63.6 46 24 21
Construction PAT A$m 178.8 189.8 141 42 59
Australia A$m 92.0 132.5 84 62 36
Asia A$m (2.5) 4.6 (2) (14) 6
Europe A$m 23.5 19.7 31 (11) 8
Americas A$m 65.8 33.0 28 5 9
Construction EBITDA Margin % 2.6% 3.1% 2.2% 1.3% 3.0%
Australia % 3.2% 5.2% 3.1% 3.0% 4.1%
Asia % - 2.8% (0.2%) (4.3%) 8.4%
Europe % 2.8% 3.3% 4.3% (1.2%) 3.4%
Americas % 2.3% 1.4% 1.1% 0.7% 1.4%
Total Segment - Core Business1
Revenue
Total A$m 10,356.1 9,656.2 9,680 7,627 3,440
New Work Secured2
Building A$b 11.2 10.0 9.9 7.5 4.9
Total A$b 11.2 10.0 9.9 7.5 4.9
% of internal to total major project3 backlog % 18% 20% 19% 24% 17%
Backlog revenue2
Building A$b 15.7 15.2 15.6 13.9 14.5
Total A$b 15.7 15.2 15.6 13.9 14.5
Book to bill
Total ratio 1.1 1.0 1.0 1.0 1.4
Backlog realisation4
Next 12 months % 56% 56% 54% 48% 25%
12 - 24 months % 29% 32% 24% 24% 39%
Beyond 24 months % 15% 12% 22% 28% 36%
Australia - Core Business1
Revenue
Total A$m 4,152.1 3,742.3 4,052 3,217 1,395
New Work Secured2
Building A$b 3.9 4.4 4.5 4.3 2.3
Total A$b 3.9 4.4 4.5 4.3 2.3
Backlog revenue2
Building A$b 6.3 6.5 6.9 7.5 8.2
Total A$b 6.3 6.5 6.9 7.5 8.2
Book to bill
Total ratio 0.9 1.2 1.1 1.3 1.6
Backlog realisation4
Next 12 months % 56% 56% 47% 36% 19%
12 - 24 months % 30% 32% 25% 26% 38%
Beyond 24 months % 14% 12% 28% 38% 43%

Construction

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Construction
FY17 FY18 FY19 FY20 1H21
Unit
Asia
Revenue
Total A$m 502.6 536.1 401 255 131
New Work Secured2
Building A$b 0.8 0.7 0.5 0.3 0.2
Total A$b 0.8 0.7 0.5 0.3 0.2
Backlog revenue2
Building A$b 0.8 0.9 0.8 0.7 0.7
Total A$b 0.8 0.9 0.8 0.7 0.7
Book to bill
Total ratio 1.6 1.3 1.2 1.2 1.5
Backlog realisation4
Next 12 months % 69% 42% 65% 68% 32%
12 - 24 months % 2% 57% 30% 26% 57%
Beyond 24 months % 29% 1% 5% 6% 11%
Europe
Revenue
Total A$m 1,117.3 679.5 941 782 441
New Work Secured2
Building A$b 0.7 1.3 1.2 0.5 1.2
Total A$b 0.7 1.3 1.2 0.5 1.2
Backlog revenue2
Building A$b 0.8 1.5 1.7 1.3 2.0
Total A$b 0.8 1.5 1.7 1.3 2.0
Book to bill
Total ratio 0.6 1.9 1.3 0.6 2.7
Backlog realisation4
Next 12 months % 66% 56% 58% 74% 33%
12 - 24 months % 28% 35% 28% 23% 51%
Beyond 24 months % 6% 9% 14% 3% 16%
Americas
Revenue
Total A$m 4,584.1 4,698.3 4,286 3,373 1,473
New Work Secured2
Building A$b 5.8 3.6 3.7 2.4 1.2
Total A$b 5.8 3.6 3.7 2.4 1.2
Backlog revenue2
Building A$b 7.8 6.3 6.2 4.4 3.6
Total A$b 7.8 6.3 6.2 4.4 3.6
Book to bill
Total ratio 1.3 0.8 0.9 0.7 0.8
Backlog realisation4
Next 12 months % 53% 59% 59% 57% 33%
12 - 24 months % 31% 27% 21% 20% 33%
Beyond 24 months % 16% 14% 20% 23% 34%

Construction

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Construction
FY17 FY18 FY19 FY20 1H21
Unit
By Region & Type - Core Business1
Revenue
Total A$m 10,356.1 9,656.2 9,680 7,627 3,440
Australia A$m 4,152.1 3,742.3 4,052 3,217 1,395
Asia A$m 502.6 536.1 401 255 131
Europe A$m 1,117.3 679.5 941 782 441
Americas A$m 4,584.1 4,698.3 4,286 3,373 1,473
New Work Secured2
Total A$b 11.2 10.0 9.9 7.5 4.9
Australia A$b 3.9 4.4 4.5 4.3 2.3
Asia A$b 0.8 0.7 0.5 0.3 0.2
Europe A$b 0.7 1.3 1.2 0.5 1.2
Americas A$b 5.8 3.6 3.7 2.4 1.2
Backlog revenue2
% of internal to total major project3 backlog % 18% 20% 19% 24% 17%
Building A$b 15.7 15.2 15.6 13.9 14.5
Australia A$b 6.3 6.5 6.9 7.5 8.2
Asia A$b 0.8 0.9 0.8 0.7 0.7
Europe A$b 0.8 1.5 1.7 1.3 2.0
Americas A$b 7.8 6.3 6.2 4.4 3.6
Total A$b 15.7 15.2 15.6 13.9 14.5
Australia A$b 6.3 6.5 6.9 7.5 8.2
Asia A$b 0.8 0.9 0.8 0.7 0.7
Europe A$b 0.8 1.5 1.7 1.3 2.0
Americas A$b 7.8 6.3 6.2 4.4 3.6
Backlog realisation4
Next 12 months % 56% 56% 54% 48% 25%
Australia % 56% 56% 47% 36% 19%
Asia % 69% 42% 65% 68% 32%
Europe % 66% 56% 58% 74% 33%
Americas % 53% 59% 59% 57% 33%
12 - 24 months % 29% 32% 24% 24% 39%
Australia % 30% 32% 25% 26% 38%
Asia % 2% 57% 30% 26% 57%
Europe % 28% 35% 28% 23% 51%
Americas % 31% 27% 21% 20% 33%
Beyond 24 months % 15% 12% 22% 28% 36%
Australia % 14% 12% 28% 38% 43%
Asia % 29% 1% 5% 6% 11%
Europe % 6% 9% 14% 3% 16%
Americas % 16% 14% 20% 23% 34%

End of sheet

Investments

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Investments
FY17 FY18 FY19 FY20 1H21
Unit
Profit and Loss
Investments Revenue A$m 566.7 393.6 348 390 151
Australia A$m 447.2 274.3 210 172 78
Asia A$m 52.0 48.7 63 134 41
Europe A$m 7.9 21.6 13 16 6
Americas A$m 59.6 49.0 62 68 26
Investments Operating EBITDA1 A$m 433.3 368.9 278 300 121
Australia A$m 347.3 297.6 199 130 62
Asia A$m 33.1 39.3 28 119 28
Europe A$m 10.2 7.4 9 (10) (4)
Americas A$m 42.7 24.6 42 61 35
Investments Operating PAT1 A$m 320.4 241.4 196 214 96
Australia A$m 253.9 172.0 149 97 44
Asia A$m 27.1 30.8 9 96 33
Europe A$m 11.7 9.3 10 (9) (3)
Americas A$m 27.7 29.3 28 30 22
Investments EBITDA by activity
Ownership Earnings1 A$m 317.2 236.0 134 102 50
Management Earnings A$m 116.1 133.0 144 198 71
Investments ROIC1 % 9.8% 7.6% 5.7% 5.8% 5.3%
Investments Invested Capital A$b 3.3 3.3 3.6 3.7 3.6
Investment segment property valuation movements (pre-tax) A$m 62.0 300.0 211 (147) (11)
Operational Metrics (Investments Segment)
Investments
Total Investments A$m 3,328.6 3,374.8 3,675 3,998 3,670
Investments by Region
Australia A$m 2,865.6 2,693.3 2,513 2,330 2,316
Asia A$m 317.4 367.5 708 914 822
Europe A$m - - 40 79 112
Americas A$m 145.6 314.0 414 675 420
Investments by Sector
Residential A$m 103.1 196.6 252 422 459
Office A$m 825.8 1,053.1 946 851 844
Retail A$m 518.4 573.1 720 934 889
Industrial A$m 71.0 74.6 95 101 103
Retirement A$m 1,710.7 1,303.0 1,397 1,353 1,375
Other A$m 99.6 174.4 265 337 -
Funds Under Management
Total A$b 26.1 30.1 35.2 36.0 37.9
Australia A$b 19.3 22.4 24.8 24.7 26.7
Asia A$b 5.4 6.3 8.2 8.7 8.2
Europe A$b 1.4 1.4 1.5 1.6 1.7
Americas A$b - - 0.7 1.0 1.3
FUM by Sector
Total A$b 26.1 30.1 35.2 36.0 37.9
Retail A$b 13.1 13.8 14.8 13.0 13.2
Office A$b 11.6 14.5 17.7 19.3 20.4
Industrial A$b 0.8 0.9 1.0 1.1 1.4
Residential A$b - - 1.0 1.7 2.0
Other A$b 0.6 0.9 0.7 0.8 0.8

Investments

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Investments
FY17 FY18 FY19 FY20 1H21
Unit
Assets Under Management
Total A$b 12.2 12.7 28.7 29.3 27.6
Australia A$b 7.2 7.3 7.5 6.1 6.5
Asia A$b 4.2 4.6 7.2 8.5 8.0
Europe A$b 0.8 0.8 0.7 0.5 0.4
Americas A$b - - 13.3 14.2 12.7
AUM by Sector
Total A$b 12.2 12.7 28.7 29.3 27.6
Residential A$b - - 13.3 14.2 12.7
Retail A$b 12.2 12.7 12.7 12.0 12.0
Office A$b - - 2.7 3.1 2.9
Commercial2 Assets Under Management
AUM A$b 12.2 12.7 15.4 15.1 14.9
Australia A$b 7.2 7.3 7.5 6.1 6.5
Asia A$b 4.2 4.6 7.2 8.5 8.0
Europe A$b 0.8 0.8 0.7 0.5 0.4
Americas A$b - - - - -
GLA under management sqm '000 1,201.5 1,172.0 1,296.2 1,392.3 1,459.3
Australia sqm '000 747.3 744.4 785.5 774.7 841.0
Asia sqm '000 312.5 285.9 369.0 475.9 476.6
Europe sqm '000 141.7 141.7 141.7 141.7 141.7
Americas sqm '000 - - - - -
Residential Assets Under Management
AUM A$b 13.3 14.2 12.7
Americas A$b 13.3 14.2 12.7
Residential for Rent Units under Management no. 53,105 52,595 52,214 52,525 52,419
Americas no. 53,105 52,595 52,214 52,525 52,419
Europe no. - - - - -
Retirement3
Total number of villages
Australia no. 71 71 72 72 75
Total number of units
Australia no. 12,626 12,717 12,785 12,858 12,931
Number of resale units
Australia no. 939 694 842 874 373
Long term growth rate
Australia % 3.6% 3.5% 3.5% 3.5% 3.5%
Discount rate
Australia % 13.0% 12.3% 12.3% 12.4% 12.4%
Pipeline
Australia no. 4,422 3,829 3,077 2,442
Pipeline
Australia A$b 1.6 1.8 1.6 1.4
Sales/Settlements4
Australia no. 144 150 104 72
Sales/Settlements4
Australia A$m 72.3 86.0 56.8 48.0
Sales/Settlements4
Australia Avg price $'000 502 573 546 667

Investments

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Investments
FY17 FY18 FY19 FY20 1H21
Unit
Australia
FUM A$b 19.3 22.4 24.8 24.7 26.7
Retail AUM
AUM A$b 7.2 7.3 7.5 6.1 6.5
GLA under management sqm '000 747.3 744.4 785.5 774.7 841
Asia
FUM A$b 5.4 6.3 8.2 8.7 8.2
Commercial2 AUM
Number of retail centres and office buildings no. 4 4 7 11 11
AUM A$b 4.2 4.6 7.2 8.5 8.0
GLA under management sqm '000 312.5 285.9 369 475.9 476.6
Europe
FUM A$b 1.4 1.4 1.5 1.6 1.7
Retail AUM
Number of retail centres no. 2 2 2 2 2
AUM A$b 0.8 0.8 0.7 0.5 0.4
GLA under management sqm '000 141.7 141.7 141.7 141.7 141.7
Americas
FUM A$b 0.7 1.0 1.3
Residential
AUM A$b 13.3 14.2 12.7
Military Housing Units under management no. 53,105 52,595 52,214 51,789 51,683
Residential for Rent Units under management no. 736 736
Residential for Rent Buildings under management no. 3 3
End of sheet

Funds Under Management

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FY17 FY18 FY19 FY20 1H21
Unit Fund Type Asset Class
Australia
Funds Under Management
Australian Prime Property Fund Retail A$b Core Retail 5.2 5.4 5.7 4.4 4.2
Australian Prime Property Fund Commercial A$b Core Office 3.8 4.6 5.1 5.2 5.7
Australian Prime Property Fund Industrial A$b Core Industrial 0.8 0.9 1.0 1.1 1.1
Lendlease Sub Regional Retail Fund A$b Core Retail 0.6 0.6 0.6 0.5 0.4
Lendlease Real Estate Partners New Zealand A$b Core Retail 0.3 0.3 0.3 0.3 0.3
Lendlease International Towers Sydney Trust A$b Core Office 3.5 4.1 4.6 4.8 4.6
Lendlease Public Infrastructure Investment Company A$b Core Social Infrastructure 0.4 0.4 0.4 0.4 0.4
Lendlease One International Towers Sydney Trust A$b Core Office 2.0 2.5 2.7 2.7 2.7
Managed Investment Mandates A$b Core Various 2.7 3.6 4.4 5.3 7.3
Total FUM A$b 19.3 22.4 24.8 24.7 26.7
Asia
Funds Under Management
Parkway Parade Partnership Limited S$b Core Plus Retail 1.3 1.4 1.4 1.4 1.3
Lendlease Jem Partners Fund Limited S$b Core Retail and Office 0.5 0.5 0.6 0.6 0.5
Paya Lebar Quarter S$b Core Office and Retail 1.5 1.9 3.1 3.2 3.2
Lendlease Asian Retail Investment Fund (ARIF) S$b Core Retail and Office 2.4 2.6 2.7 1.8 1.9
Lendlease Global Commercial REIT S$b Core Retail and Office 1.4 1.5
Total FUM S$b 5.7 6.4 7.8 8.4 8.4
Europe
Funds Under Management
Lendlease Retail LP £b Core Retail 0.8 0.7 0.6 0.4 0.4
Lendlease Residential Investment Partnership £b Core Residential 0.1 0.2 0.3 0.4
Lendlease Residential Investment Partnership 2 £b Core Residential 0.1 0.1
Lendlease MSG 1 Europe Investment Partnership £b Core Office 0.1 0.1
Total FUM £b 0.8 0.8 0.8 0.9 1.0
Americas
Funds Under Management
Lendlease Americas Residential Partnership US$b Value Add Residential 0.5 0.7 1.0
Total FUM US$b 0.5 0.7 1.0
End of sheet

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Legend

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

Term

Assets Under Management

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

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

Definition

Total market value of gross assets managed by Lendlease.

Backlog units

Backlog includes Group owned, joint venture and managed projects. The actual number of units for any particular project can vary as planning approvals are obtained.

Book to Bill

Commercial backlog (sqm)

Ratio calculated as new work secured over revenue realised.

Represents net developable land in relation to master-planned urban communities and net developable floor space for other developments. The actual net developable land area and floor space for any particular project can vary as planning approvals are obtained.

Construction backlog realisation Construction backlog revenue Core Operating Earnings per security

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

Current year construction backlog revenue is the total revenue to be earned in future periods.

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

Core Operating Return on equity (ROE)

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

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

Development pipeline Total estimated project revenue of all development work secured (representing 100% of project value). Development Production Project end value on product completed during a financial period (representing 100% of project value). Development Work in Progress End value of Development Pipeline in delivery as at period end (representing 100% of project value). Distribution payout ratio Distribution divided by Core Operating Profit after Tax. Distribution per security For the full year (FY) reflects the amount of interim and final distribution per stapled security from the Company / Trust. For the half year (1H) reflects the amount of interim distribution per stapled security from the Company / Trust. Earnings per security Statutory Profit after Tax divided by the weighted average number of securities on issue during the period (including treasury securities). Effective tax rate Income tax expense as a percentage of statutory profit before tax. Funds under management (FUM) Total market value of investments across Lendlease managed funds. Gearing Net debt to total tangible assets, less cash.

Earnings per security Effective tax rate Funds under management (FUM) Gearing GLA under management (sqm) Invested capital Invested equity Investments

Represents the gross lettable area, with the exception of Asia which represents the net lettable area of the centres.

Represents securityholder equity plus gross debt less cash on balance sheet.

Invested equity refers to the contributed equity for each project.

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

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Investments - Management EBITDA Earnings primarily derived from the investment management platform and the management of US Military Housing operations.

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

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Core and Group Summary

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

  2. Earnings per stapled security is nonmeaningful in 2H20 due to share issue, and FY19 and HY20 comparatives have not been restated.

  3. Total Invested Capital includes Corporate.

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

  5. FY19 and HY20 Weighted average number of securities have not been restated to reflect the share issue in 2H20.

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

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

  8. 1H19, FY19 and FY20 interest cover has been adjusted to exclude one off items related to the Engineering business (1H19/FY19: $500m; FY20: $525m).

  9. 1H17 and FY17 restated reflecting the impact of the first time adoption of AASB 9 Financial Instruments.

  10. Cash conversion is nonmeaningful in 1H20, 2H20 and HY21

Non Core

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

  2. Rounded to the nearest $100m. In 1H17 and FY17 rounding adjustments of $0.1b have been reallocated between Building and Engineering in order to report the Engineering and Services business as non core.

  3. 1H backlog realisation is broken down into the following periods: next 6 months; 6-18 months; and beyond 18 months.

Development

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

  2. Following sale of 25% of Australia's Retirement Living business to APG in HY18 and Lendlease’s remaining 75% investment shifting into Equity Accounted Investments on the Balance Sheet, operational and financial metrics for the Development component were included in the Investments segment. From 1H20, Retirement product in Asia has been included within Urbanisation.

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

  4. Europe communities in HY21 relates to Chiswick englobo sale and settlement.

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

  6. On adoption of AASB 15 from 1 July 2018, the recognition point of revenue (and associated units) on residential for sale development properties changed to settlement in Australia, Europe and Americas. Prior to the adoption of AASB 15, the recognition point of revenue (and associated units) was aligned with practical completion.

  7. Represents total estimated development end value.

  8. Aligned with practical completion of the apartment for rent buildings.

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Construction

  1. From 1H17, comparatives have been restated to exclude the Engineering and Services business following the decision that it is no longer a required part of the Group's strategy.

  2. Rounded to the nearest $100m. In 1H17 and FY17 rounding adjustments of $0.1b have been reallocated between Building and Engineering in order to report the Engineering and Services business as non core.

  3. Includes all Construction projects with backlog greater than $100m.

  4. 1H backlog realisation is broken down into the following periods: next 6 months; 6-18 months; and beyond 18 months.

Investments

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

  2. Office product has been included from FY19 onwards.

  3. Following sale of 25% of Australia's Retirement Living business to APG in HY18 and Lendlease’s remaining 75% investment shifting into Equity Accounted Investments on the Balance Sheet, operational and financial metrics for the Development component were included in the Investments segment.

  4. On adoption of AASB 15 from 1 July 2018, the recognition point of revenue (and associated units) on residential for sale development properties changed to settlement in Australia, Europe and Americas. Prior to the adoption of AASB 15, the recognition point of revenue (and associated units) was aligned with practical completion.

Important Notice

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This document 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 does not contain any new information but is a compilation of material from Lendlease Group’s results and previously disclosed reports and presentations. Review of this material does not replace the need to review the Lendlease Group results and other previously disclosed reports and presentations for context and information included in those documents.

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.

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.

This document has been released on the Lendlease website as an excel spreadsheet and the half year data on the ASX platform as a PDF document.