LENDLEASE GROUP - Interim / Quarterly Report 2021

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22 February 2021
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Lendlease Group 2021 Half Year Results Announcement, Presentation and Appendix

Lendlease Group today announced its results for the half year ended 31 December 2020. Attached is the HY21 Results Announcement, Presentation and Appendix.

A summary of Lendlease’s Major Urbanisation Projects can be found on the Lendlease website, or by clicking on the link here.

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 201922 February 202122 August 2018
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Operating profit recovers, strategic priorities progressed

For the half year ended 31 December 2020:

Core operating[1] Profit after Tax of $205 million and Earnings Per Security of 29.8 cents
Interim distribution of 15.0[2] cents per stapled security, payout ratio of 50%
Statutory Profit after Tax of $196 million

Progress on strategic priorities:

Strategic divestments to enable increased focus on competitive edge:
Sale of Engineering, US Telecommunications and US Energy businesses
Sustainability targets set global benchmark in real estate
Investment partner initiatives:
Development joint ventures established across three urbanisation projects representing c.$4 billion in development value
Investment partner acquires a 25%[3] stake in Retirement Living business
Two urbanisation projects secured in New York and Los Angeles
$2 billion multi sector investment mandate underpins FUM growth to $38 billion

HY21 Result[4]

Group Chief Executive Officer and Managing Director, Steve McCann, said Lendlease has responded well to a challenging operating environment with profit recovering from the worst of the COVID-19 impacts, albeit activity is still below pre pandemic levels.

“The Group has displayed resilience through a very testing period with a recovery in operating conditions gathering momentum towards pre COVID-19 levels. Core operating EBITDA was $405 million, a significant improvement from the second half of FY20, although lower than the $525 million in HY20” said Mr McCann.

The challenging operating conditions continued to affect each of the segments. However, the range of mitigating actions that were taken post the onset of the pandemic has enabled the Group to navigate this environment and take advantage of potential development and investment opportunities.

The weaker market environment provided an opportunity to secure new urbanisation projects alongside investment partners on attractive terms.

1 Statutory profit excluding Investments segment property revaluations.

2 Dividend component of 11.2 cents per share is 50% franked.

3 Agreement to sell down entered post balance date.

4 Comparative period the half year ended 31 December 2019, unless otherwise stated.

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 Telephone +61 2 9236 6111 Exchange Place, 300 Barangaroo Avenue Facsimile +61 2 9252 2192 Barangaroo NSW 2000 Australia lendlease.com

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19 August 201922 February 202122 August 2018
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In New York, 1 Java Street will transform a city block into apartments for rent with an estimated end value of $1.0 billion. The Group also secured its first urbanisation project in Los Angeles at La Cienega Boulevard. The project has an estimated end value of $0.8 billion and will include a mix of apartments for rent and office space. These projects, both of which are in partnership with Aware Super, will support the growth of the Investments platform.

Returns for the Development segment were impacted by COVID-19. While progress was made on converting opportunities across the Group’s urbanisation pipeline, uncertainty continued to affect both tenant demand and investment partner appetite in the office sector. Residential product commenced delivery at TRX in Kuala Lumpur, Ardor Gardens in Shanghai and 100 Claremont Avenue in New York. The creation of an investment partnership to deliver the first residential tower at Barangaroo was the largest contributor to the segment result.

The Construction segment delivered a solid result as the business rebounded from the significant COVID-19 disruptions experienced in H2 FY20. The portfolio performed well with returns at the top end of the target range, aided by cost management and projects either nearing or reaching completion. Revenue was constrained, with activity affected by ongoing productivity impacts across sites and delays in the commencement of newly secured work. New work secured of $4.9 billion was up from $3.1 billion, with the Australian and European businesses benefitting from social infrastructure activity.

The Investments segment recovered from the worst of the COVID-19 impacts, although returns were below the target range. Compared with H1 FY20, Management EBITDA declined as a result of reduced asset management fees, predominantly related to the retail sector. Funds management fees in the prior period also benefited from a substantial performance fee. While the Group’s investment portfolio is well diversified, lower returns from the Retirement Living business and the Group’s retail investments weighed on Ownership EBITDA.

Strategic Progress

The Group made significant progress on its strategic priorities with several divestments that will enable greater focus on areas where competitive edge is strongest. The sale of the Engineering business to Acciona was completed, and the US Telecommunications and Energy businesses were sold.

Post balance date, the Group made further progress in realigning its exposure to the retirement sector with an investment partner acquiring 25 per cent of the Retirement Living business at book value. The Group now holds a 50 per cent interest alongside two high quality institutional partners who are strongly aligned strategically.

The capital from these divestments will be redeployed into other opportunities aligned with the Group’s strategic priorities.

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Level 14, Tower Three, International Towers Sydney Telephone +61 2 9236 6111 Exchange Place, 300 Barangaroo Avenue Facsimile +61 2 9252 2192 Barangaroo NSW 2000 Australia lendlease.com

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19 August 201922 February 202122 August 2018
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Investment partner initiatives were progressed with development joint ventures established across three urbanisation projects: the first residential tower at One Sydney Harbour and the two urbanisation projects in the US, with a combined end value of c.$4 billion. The two US projects will support growth in funds under management and future investment product.

Two bold sustainability targets highlight our focus on maintaining a leadership position in this area. “We are determined to be a leader in driving industry transformation to limit global warming and to create lasting social value” said Mr McCann.

The environmental targets of net zero carbon emissions by 2025 and absolute zero by 2040 set a global benchmark for the real estate sector. The Group also committed to the creation of $250 million of social value by 2025.

Financials

Core operating profit after tax, the Group’s measurement of underlying earnings, was $205 million for the period ended 31 December 2020, down 26 per cent[5] . Core operating earnings per security was 29.8 cents and return on equity was 5.9 per cent, below the target range as COVID-19 continued to adversely impact the performance of the Group. The interim distribution per security of 15 cents, represents a payout ratio of 50 per cent of Core operating profit.

The Group’s statutory profit after tax for the period ending 31 December 2020 was $196 million, down 37 per cent. This included a loss of $2 million for the Non core segment and a loss of $7 million from property revaluations in the Investments segment.

The result for the Non core segment reflects the performance of the Services business, the Engineering business prior to the completion of the sale, the retained engineering projects post the sale and remaining exit costs.

Total proceeds from the sale of the Engineering business are estimated to be $197 million, comprising the agreed sale price of $160 million and additional estimated completion adjustments of $37 million. A working capital cash balance of $411 million was transferred to the buyer upon settlement.

The Group entered the new calendar year in a strong financial position with gearing of 12.9 per cent and $4.7 billion of liquidity.

Acting Group Chief Financial Officer, Frank Krile said: “To align more closely to the strategic priorities of the Group, refinements were made to the financial strategy and Portfolio Management Framework during the period. We remain focused on providing the financial capacity to deliver our $110 billion development pipeline, while continuing to pursue attractive investment opportunities.”

5 Comparative period the half year ended 31 December 2019.

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 Telephone +61 2 9236 6111 Exchange Place, 300 Barangaroo Avenue Facsimile +61 2 9252 2192 Barangaroo NSW 2000 Australia lendlease.com

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19 August 201922 February 202122 August 2018
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Underlying operating cash outflow was $735 million. The establishment of the development Joint Venture to deliver the first residential tower at One Sydney Harbour resulted in an approximate $500 million decrease in the underlying operating cash flow and an equivalent increase in underlying investing cash flow. There was also an approximate $200 million operating cash outflow from the Non core segment.

The cash conversion ratio[6] to operating EBITDA over the five years to H1 FY21 was 86 per cent.

Outlook

Progress made on strategic divestments will enable the Group to increase its focus on the core urbanisation and investment platforms.

“Our Core business is at a pivotal point, with a development pipeline of $110 billion and a growing number of major urbanisation projects in our international gateway cities, across US and European cities in particular,” Mr McCann said.

While uncertainty around COVID-19 persists, and is likely to impact near term conversions, we remain confident over the medium term and aim to convert more than $20 billion of our development pipeline by the end of FY23. Along with development work in progress of $12.2 billion, successful conversion of the pipeline will support the Group’s annual production target of more than $8 billion.

Construction backlog revenue for the core business is $14.5 billion, $11.8 billion of which is for external clients.

“Our urbanisation pipeline is expected to create more than $50 billion of institutional grade assets for our investment partners and the Group’s investments platform. We expect to more than double our current $38 billion in funds under management as this pipeline is delivered,” Mr McCann said.

The Investments segment comprises $3.7 billion of investments, $38 billion in funds under management and $28 billion in assets under management and is well placed to improve returns following recent pandemic induced weakness. The Group has also made progress on product development initiatives and new investment partner relationships which are expected to support future growth in the Investments platform.

Further information regarding Lendlease’s results is set out in the Group’s financial results presentation for the half year ended 31 December 2020 and is available on www.lendlease.com.

ENDS

6 Measure of Underlying operating cashflow to Operating EBITDA.

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 Telephone +61 2 9236 6111 Exchange Place, 300 Barangaroo Avenue Facsimile +61 2 9252 2192 Barangaroo NSW 2000 Australia lendlease.com

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19 August 201922 February 202122 August 2018
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FOR FURTHER INFORMATION, PLEASE CONTACT:

Investors:

Media:

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

2021 Key Dates for Investors
Securities quoted ex-distribution on the Australian Securities Exchange	26 February
Interim distribution record date	1 March
Interim distribution payable	17 March
Full year results	16 August
Annual General Meetings	12 November

Authorised for lodgement by the Lendlease Group Disclosure Committee

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Level 14, Tower Three, International Towers Sydney Telephone +61 2 9236 6111 Exchange Place, 300 Barangaroo Avenue Facsimile +61 2 9252 2192 Barangaroo NSW 2000 Australia lendlease.com

Sydney: Artist’s impression of One Sydney Harbour – on Gadigal Country

2021 Half Year Results

22 February 2021

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Lendlease HY21 Financial Results

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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 respects to the Traditional Owners, especially their Elders past and present, and value their custodianship of these lands.

Lendlease HY21 Financial Results

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Group
Performance
Singapore: Paya Lebar Quarter
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Steve McCann Group Chief Executive Officer and Managing Director

Lendlease HY21 Financial Results 4

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Together we create value
through places where
communities thrive
Our strategy
Employ our placemaking expertise and integrated
business model in global gateway cities to deliver
urbanisation projects and investments that generate social,
environmental and economic value.
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Lendlease HY21 Financial Results

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Safety
1. Calculated to provide a rate of
instances per 1,000,000 hours
worked.
2. As at 30 June 2020.
3. 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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Fatalities

Lendlease is saddened to report two fatalities occurred on our operations during HY21
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 / initiatives

Group Lost Time Injury Frequency Rate[1] 1.8, up from 1.5[2]
Operations without a Critical Incident[3] 96%, up from 91%[2]
Critical incident Frequency Rate 0.7[1] , unchanged from June 2020
Design Risk Appetite Policy developed as part of the broader Risk Appetite Framework – assists in driving safer outcomes:
−Identifies and manages risks prior to project commencement
Implemented global COVID-19 Group Standards:
−Social Distancing; Personal Protective Equipment; Personal Screening; Confirmed Case Response

Lendlease HY21 Financial Results 6

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Environmental,
Social and
Governance
1. Certified by Climate Active, an
Australian Government backed
initiative to drive voluntary climate
action.
2. HIRE360 (US); Programma 2121
(Europe); Future Smile (Asia);
Australian Business Community
Network.
3. Global Real Estate Sustainability
Benchmark.
4. Reconciliation Action Plan.
5. 6% of participating companies in
2020 received a AAA rating.
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HY21 key achievements

Environmental target: Net zero carbon scope 1 & 2 by 2025, absolute zero carbon scope 1, 2 & 3 by 2040:
APPF Commercial certified[1] carbon neutral scope 1 and 2
Founding signatory to the SteelZero initiative
Lendlease Europe published Roadmap to Absolute Zero Carbon
Social sustainability target: Create $250m of social value by 2025:
Shared value partnerships across all regions[2]
−Utilising best practice social value measurement methodology
2020[3] GRESB global leadership:
1 ranked office fund, seven funds ranked in the top 20
Published Modern Slavery Statement covering all operations globally
Launched second Elevate RAP[4] 2020 – 2023: Country Truth and Our Shared Story
Received AAA[5] ESG rating from MSCI and maintained A+ rating from PRI
Celebrated 25 years of Community Day – a Lendlease Foundation initiative

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We are a
1.5ºC
aligned
company
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Create
$250m of
social value
by 2025
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Lendlease HY21 Financial Results

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HY21
result [1]
1. Comparative period the half year
ended 31 December 2019, unless
otherwise stated.
2. Statutory profit excluding
Investments segment property
revaluations.
3. Return on Equity is calculated using
the Core operating Profit after Tax
divided by the arithmetic average of
beginning and half year end
securityholders’ equity.
4. Dividend component of 11.2 cents
per share 50% franked.
5. Net debt to total tangible assets, less
cash.
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Securityholder returns

Core operating[2] Profit after Tax of $205m:
Earnings per stapled security of 29.8 cents, Return on Equity of 5.9%[3]
Interim distribution of 15.0[4] cents per security, payout ratio of 50%
Statutory Profit after Tax of $196m:
Non core segment Loss of $2m
Investments segment property devaluations of $7m

Performance

Significant progress made on strategic priorities:
Positioning the Group to leverage competitive edge:
- Approximately $4b of investment partner initiatives across three urbanisation projects
- Strategic divestments supporting greater focus
Operating conditions improving, recovery gathering momentum towards pre COVID-19 levels:
Core operating EBITDA of $405m:
- Up from $40m in H2 FY20, down 23% from $525m in H1 FY20
Development: progress on conversion despite challenging environment
Construction: margins up with solid portfolio performance and cost management, softer revenue
Investments: returns below target as conditions recover from the worst of the COVID-19 impacts
Strong financial position: gearing of 12.9%[5] , and liquidity of $4.7b, providing capacity to:
Accelerate development towards $8b+ target
Take advantage of new investment opportunities

Lendlease HY21 Financial Results 8

Progress on strategic priorities

Executing on strategy

Strategic divestments to focus on competitive edge:
Completed sale of Engineering business
Sale of US Telecommunications business
Sale of US Energy business
Market soundings for sale of Services business have recommenced
Investment partner initiatives:
Mitsubishi Estate: Barangaroo South, One Sydney Harbour, tower 1: $2.0b[1]
Aware Super: New development joint ventures in New York and Los Angeles: $1.8b[1]
−Aware Super: Acquired a 25%[2] interest in Retirement Living business
$2b multi sector investment mandate secured in Australia
Development pipeline $110b[1] :
New projects secured in HY21:
- 1 Java Street, New York: c.$1.0b[1]
- La Cienega Boulevard, Los Angeles: c.$0.8b[1]
Progressing Birmingham Smithfield, UK: c.$2.7b[1,3]

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New York: 1 Java Street
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Sydney: One Sydney Harbour [4]
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Birmingham: Smithfield [4]
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1. Total estimated project revenue of all development work secured (representing 100% of project value). 2. Agreement to sell down entered post balance date. 3. Birmingham City Council approval for joint venture agreement. 4. Artist’s impression (image subject to change and further design development and planning approval).

Lendlease HY21 Financial Results

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Financial
Performance
Melbourne: Two Melbourne Quarter – on Kulin Nation Country
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Frank Krile Acting Group Chief Financial Officer

Lendlease HY21 Financial Results

Financial performance[1]

$m	HY20	HY21	Change
Core
Development	272	244	(10%)
Construction	101	104	3%
Investments	224	121	(46%)
Segment EBITDA	597	469	(21%)
Corporate costs2	(72)	(64)	11%
Operating EBITDA	525	405	(23%)
Depreciation and amortisation	(77)	(75)	3%
Net finance costs	(76)	(67)	12%
Operating Profit Before Tax	372	263	(29%)
Income tax expense	(94)	(58)	38%
Operating Profit After Tax	278	205	(26%)
Core Operating EPS (cents)	47.3	29.8	(37%)
Group
Statutory Profit After Tax	313	196	(37%)

• Partnership established to deliver tower one, One Sydney Harbour; apartment settlements in Melbourne and London; Communities settlements up although still subdued

EBITDA margin 3%, up from 2.3%; revenue lower
Lower investment income and asset management fees; substantial performance fee in prior period
4% decline in Group services costs and lower treasury costs

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Recovery towards pre COVID-19 levels
Segment EBITDA ($m)
• Lower net debt and marginally lower cost of debt Development Construction Investments
597
469
224
121
• Higher number of weighted average securities 101
104
following capital raising in H2 FY20
126
272 244
• Includes Non core loss of $2m and $7m in 76
50
Investments segment property devaluations
HY20 H2FY20 HY21
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1. Comparative period the half year ended 31 December 2019, unless otherwise stated. 2. Corporate costs of $64m comprise Group services costs of $54m and Group Treasury costs of $10m.

Lendlease HY21 Financial Results

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Cash flow
1. Impact associated with $588m
PLLACes (Presold Lendlease
Apartment Cash flows) operating
inflow in H2 FY20.
2. Working capital cash balance
transfer to buyer on completion of
sale.
3. $451m of closing cash and cash
equivalents classified as Disposal
Group assets held for sale at FY20
4. Includes the impact of foreign
exchange movements on opening
cash.
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HY21 Cash flow movements

Underlying operating cash outflow ($735m):

Underlying investing cash outflow ($161m):

Non core segment cash outflow (c.$200m):
- One Sydney Harbour joint venture:
  - −c.$500m[1] underlying investing inflow
−Impact from retained projects
Core business cash flow (c.$50m):
Investments:
−Weaker period across all three segments
−Development expenditure across a range of projects
−Corporate costs
Strategic divestments:
One Sydney Harbour joint venture:
−US Telecommunications
−c.$500m[1] underlying operating outflow
$411m[2] outflow of working capital cash post Engineering sale

HY21 $b

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Establishment of OSH JV $500m Green bond
1.6 (0.2)
- (0.5) 0.5 (0.5)
0.5 3
0.2 (0.4)
0.3 0.9
(0.1)
1.1
FY20 closing Non core Core One Sydney One Sydney Investments Divestments Engineering net Interest and tax Net financing HY21 closing
cash Harbour, tower Harbour, tower working capital paid and other cash
one one adjustments 4
Underlying Operating Underlying Investing
Cash flow Cash flow
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Lendlease HY21 Financial Results

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Cash flow
1. Reconciliation on appendix slides
14 and 15.
2. Underlying operating cash flow
relative to operating EBITDA.
3. Movement in development
properties inventory, less
movement in deferred land
payments.
4. 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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Underlying operating cash flow[1 ] last five years

Underlying operating cash flow of $3.2b over five years:

Statutory operating cash flow of $529m:
−$0.9b has been paid in interest and tax
−$1.1b of the Group’s operating cash flow has been reinvested into development inventories
−$0.8b cash realisation from the sell down of deconsolidated development entities and gains on sale of assets
Cash conversion of 86% over five years

Five year reconciliation of cashflow to EBITDA ($m)

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Cash conversion 86% [2]
3,781
798 3,240
1,052
861
529
Operating Interest and Net Adjustment Underlying Operating EBITDA
cash flow tax paid investment from investing operating
into cash flow 4 cash flow
development
inventory 3
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Lendlease HY21 Financial Results

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Financial
position
1. Target range 10 – 20%.
2. Total invested capital at 31
December 2020 was $8.8b.
Development and Investments
totalled $8.6b, Corporate $0.2b.
3. HY21 EBITDA plus interest income,
divided by interest finance costs,
including capitalised finance costs.
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Financial strength

Capital structure

Gearing 12.9%[1] , up from 5.7% at FY20; net debt $1.8b, up from $0.8b at FY20:
−Underlying operating cash outflows
Proceeds from Engineering sale more than offset by working capital transfer
−Additional investment into the Development pipeline
Invested capital up $0.6b to $8.8b
Investment grade credit ratings:
−Moody’s: Baa3 stable outlook
−Fitch: BBB- stable

Debt metrics

Interest cover[3] of 6.7 times
Average cost of debt 3.3%, maturity 4.3 years

Funding and liquidity

Total liquidity of $4.7b provides capacity to increase development and investment activity
−$0.9b cash, $3.8b undrawn facilities
$500m Green Bond:
−First for the Group
−Largest green issuance by an Australian non financial corporate

Invested capital: Development and Investments

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42%
$8.6b²
58%
Development Investments
(40 - 60%) (40 - 60%)
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Group invested capital: By region

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14%
24% $8.6b² 47%
15%
Australia Asia Europe Americas
(40 - 60%) (10 - 25%) (10 - 25%) (10 - 25%)
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Lendlease HY21 Financial Results

Core operating financial returns

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• Average Return on Equity 5 years [1] : 8.8% [2]
Target
8-11%
Development segment ($m) Construction segment ($m) Investments segment ($m)
Average ROIC: 5 years [1] Average EBITDA margin: 5 years [1] Average ROIC: 5 years [1]
10.0% 2.5% 7.2%
Target [3] Target Target [3]
10-13% 2-3% 6-9%
1,000
12.0% 13.7% 13.4% 11.6% 2.8% 2.6% 3.1% 2.2% 1.3% 3.0% 900800700 9.5% 9.8% 7.6% 5.7% 5.8% 5.3% 15.0%10.0%
793 7.2% 296 600 5.0%
673 4.7% 271 500 433 -
552 322 211 400300 369 278 300 (5.0%)
101
200
264 244 171 104 100 217 121 (10.0%)
0 (15.0%)
H2 FY16 FY17 FY18 FY19 FY20 HY21 H2 FY16 FY17 FY18 FY19 FY20 HY21 H2 FY16 FY17 FY18 FY19 FY20 HY21
H1 EBITDA H2 EBITDA ROIC H1 EBITDA H2 EBITDA EBITDA Margin H1 EBITDA H2 EBITDA ROIC
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. 1 . Period ended 31 December 2020 2. Group average ROE, including Non core segment, 7.2%. 3. Through-cycle target based on rolling three to five year timeline.

Lendlease HY21 Financial Results

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Operational
Update
New York: 1 Java Street
Existing site
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Steve McCann Group Chief Executive Officer and Managing Director

Lendlease HY21 Financial Results 16

Chicago

Southbank
Lakeshore East

London

Thamesmead Waterfront
Euston Station
Silvertown Quays
International Quarter London
Elephant Park
High Road West
Deptford Landings

Growth in platform across target gateway cities

Milan

San Francisco

San Francisco Bay Area Project

New York

Milano Santa Giulia
Milan Innovation District
30 Van Ness
1 Java Street

Kuala Lumpur

Construction Funds Under backlog revenue ($b) Management ($b)

Development Pipeline ($b)

Assets Under Management1[1] ($b)

The Exchange TRX

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113 110 16 16 35 36 38 29 29 28
15
14 14
76
71 30
49 26 12 13
FY17 HY21 FY17 HY21 FY17 HY21 FY17 HY21
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Perth

Waterbank

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Melbourne

Melbourne Quarter
Victoria Harbour

Brisbane

Brisbane Showgrounds

Sydney

Barangaroo South
Sydney Place
Victoria Cross over station development

Lendlease HY21 Financial Results

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Development
1. Comparative period the half year
ended 31 December 2019.
2. Total estimated project revenue of
all development work secured
(representing 100% of project
value).
3. Project end value on product
completed during the financial
period (representing 100% of
project value).
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Operational performance[1]

EBITDA $244m, down from $272m

Development pipeline $110b

$12.2b work in progress, >$95b remaining
Secured two new urbanisation projects in the US:
−First project secured in target gateway city of Los Angeles
Urbanisation pipeline of $96.2b:
−Scale and diversification across 13 global gateway cities:
- Residential for sale: $42.0b
- Residential for rent: $24.3b
- Commercial: $29.9b
Communities pipeline of $13.3b:
−16 projects in Australia and one in the US

Production update

HY21 production of $1.8b:
Two Melbourne Quarter, Melbourne: c.51,000 sqm
440 residential for sale settlements including Melbourne and London
−845 West Madison, Chicago - apartments for rent
1,043 Australian communities settlements
FY21/22 production constrained:
−c.50% of the $110b pipeline secured within the last 3 years
−Time from origination to planning approval typically 2-3 years
−Disciplined approach to conversion of pipeline based on market conditions
−Communities business in cyclical recovery

Pipeline[2] ($b)

1.8 (1.8) 112.5 113.0 (3.5) 109.5

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HY20 FY20 New work Production FX and HY21
secured Other
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Production[3] ($b)

Targeting an increase to $8b+ production p.a.

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5.6
5.0
4.6
4.0
1.8
FY17 FY18 FY19 FY20 HY21
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Lendlease HY21 Financial Results

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Development
1. End value of Development Pipeline
in delivery as at period end
(representing 100% of project
value).
2. Subject to planning approvals and
market conditions.
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Outlook

Work in progress future indicator of production

New additions of $2b including apartments for sale and rent:
−Tower B, TRX Residences, The Exchange TRX, Kuala Lumpur
−Park & Sayer, Elephant Park, London
−100 Claremont, New York
−Ardor Gardens, Shanghai
Composition of work in progress:
−Apartments for sale $4.5b: Sydney; Kuala Lumpur; London; Boston; Chicago; and New York
−Apartments for rent $2.1b: London; Chicago; and Shanghai
−Commercial $5.2b: Melbourne; Milan; Sydney; Kuala Lumpur
−Communities $0.4b

Accelerating towards $8b+ production per annum

Near term conversion opportunities:
−Residences Two, One Sydney Harbour; Melbourne Quarter Tower; International Quarter London; Milan Innovation District; Van Ness
Indicative conversions to FY23[2 ] c.$8b per annum:
−Initial product launches across five urbanisation projects
−Operating platform across 13 gateway cities
−Active discussions with investment partners across a number of projects
−Recovery in underlying demand to support conversion
−Strong outlook for Communities sector

Work in progress[1] ($b)

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2.0 (1.8)
12.3 (0.3) 12.2
FY20 Commence- Production FX and Other HY21
ments
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Indicative conversion[2] H2 FY21 – FY23

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Apartments for sale
Apartments for rent
Commercial
Communities 11%
33%
>$20b
39%
17%
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Lendlease HY21 Financial Results

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Construction
1. Comparative period the half year
ended 31 December 2019.
2. Includes all Construction projects
with backlog greater than $100m,
which represents 82% ($11.9b) of
secured backlog.
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Operational performance and outlook[1]

EBITDA $104m, slightly up from $101m
EBITDA margin 3.0%, up from 2.3%:
Solid performance across the portfolio
Cost management implemented post onset of COVID-19
A number of projects nearing or reached completion
Revenue of $3.4b, down 21%:
Ongoing COVID-19 related impacts:
- Delays in commencement of new projects
- Activity constrained by social distancing measures
New work secured $4.9b, up from $3.1b:
Public sector activity significant contributor:
- Australia: Defence and social infrastructure
- Europe: Social infrastructure
Private sector activity declining:
- Americas: Well below historical averages
Higher new work secured to support future period revenue outlook
Backlog revenue of $14.5b:
$11.8b for external clients
Strong brand with external clients in key target sectors and markets
Urbanisation pipeline to provide significant opportunities for future backlog and value add to the integrated model

Backlog revenue ($b)

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External Internal
4.9 (3.9)
14.2 13.9 (0.4) 14.5
11.7 10.6 11.8
HY20 FY20 New work Run-off FX & HY21
secured Other
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HY21[2] backlog by sector and client

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Commercial Lendlease
Corporate
Defence
Government
Social Infrastructure
Residential
Other
8%
17%
15% 30%
54%
18% 29%
29%
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Lendlease HY21 Financial Results

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Investments
1. Comparative period the half year
ended 31 December 2019.
2. Fees generated from the
management of $38b of FUM.
3. Fees generated from the
management of $28b of AUM.
4. Secured future FUM from funds or
mandates with development
projects.
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Management earnings

Operational performance[1]

Management EBITDA of $71m, down from $120m
Funds management revenue[2] $79m, down from $133m:
Base fees stable as a proportion of funds under management
Substantial performance fee in prior period
$3.5b of additions to funds under management:
- $2b multi sector mandate secured to manage TCorp portfolio
Asset management revenue[3] $45m, down from $57m:
Lower retail asset management fees
Residential now the largest component of asset management

Outlook

Funds under management (FUM) of $37.9b:
Secured future FUM of $2.7b[4] representing 11 buildings in delivery
Opportunity to double FUM as urbanisation pipeline is delivered:
- $50b of institutional investment grade product in c.$100b urbanisation pipeline
−Product development and new investment partner relationships progressing
Assets under management (AUM) of $27.6b:
Residential $12.7b:
- US Military Housing: c.$1.0b of redevelopment expected to drive fee uplift in H2 FY21
Retail $12.0b: occupancy and income expected to recover
Office $2.9b: opportunities to grow portfolio

Management EBITDA ($m)

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1H 2H
198
144
133
116
71
FY17 FY18 FY19 FY20 HY21
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Investments platform ($b)
FUM AUM
Office Retail Resi Industrial Other
4% [2%]
5% 11%
46%
$38b 54% $28b
35%
43%
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Lendlease HY21 Financial Results

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Investments
1. Comparative period the half year
ended 31 December 2019.
2. Agreement to sell down entered
post balance date.
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Ownership earnings

Performance[1]

EBITDA of $50m, down from $104m:
Recovery underway from worst of COVID-19 impacts in H2 FY20
Investment income supressed from a weak operating environment
Higher asset sale profits in prior corresponding period
Operating conditions by sector:
Retirement Living returns subdued
Office markets stable
Challenging retail operating conditions
Residential robust
Investments $3.7b, down from $4b:
Divestment of US Telecommunications business aligned to revised strategy

Outlook

Expect investment returns to improve
Target to grow investment portfolio:
Co investment positions in urbanisation product
External market opportunities
Continue to recycle capital:
−Investment partner acquired a 25%[2 ] interest in the Retirement Living business at book value

Ownership EBITDA ($m)

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1H 2H
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317
236
134
102
50
FY17 FY18 FY19 FY20 HY21
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Investments by sector ($b)

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Residential
Office
Retail
Industrial 13%
Retirement
37%
$3.7b 23%
3%
24%
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Lendlease HY21 Financial Results

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Non core
1. Exit related costs included
implementation and selling costs,
indemnities included in the sale
agreement and potential costs to
cover concluding projects retained
by the Group.
2. $15m accounted for in FY19, $525m
in FY20 and $10m in HY21.
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Sale of Engineering business complete

Completed sale to Acciona on 9 September 2020:
−Total estimated proceeds of $197m, including sale price of $160m and additional estimated completion adjustments of $37m: o $40m received in HY21, balance payable in H2 FY21
- No impact to Income statement in the period from transaction
Working capital cash balance of $411m transferred to buyer

Segment performance

EBITDA $24m, including $10m of exit costs, performance reflects:
Engineering business prior to completion of sale
Retained engineering projects post sale
Services business
Retained engineering projects:
NorthConnex and Kingsford Smith Drive completed during the period and are operational
Melbourne Metro Project:
- Identified issues in relation to scope and costs resolved with Victorian Government
- Position consistent with that taken in financial statements at 30 June 2020
Services business:
Solid underlying performance with new work secured of $0.8b and backlog of $2.5b
Additional $11m pre tax of costs incurred relating to the wind down of the Energy and Technology unit
Estimated exit costs[1] relating to Non core segment of $550m[2] pre tax, unchanged and fully accounted for

Lendlease HY21 Financial Results

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Outlook
Milan: Artist’s impression of Milan Innovation District
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Steve McCann Group Chief Executive Officer and Managing Director

Lendlease HY21 Financial Results 24

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Outlook
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Positioned for long term growth

Group positioned to improve returns as operating conditions continue to recover:
Strong financial position
Capital efficient land funding and delivery model
Capability and flexibility to adapt to evolving market and customer preferences
Depth and breadth of investment management skills and investment partner relationships
Significant progress on strategic priorities:
Leverage competitive edge through placemaking and the integrated business model towards key focus areas: o Large scale mixed use urbanisation projects
- Scale Investments platform
Strategic divestments:
- Redirecting human and financial capital towards focus areas
Leadership in sustainability:
- Bold new environmental and social targets launched
- Industry recognition
Accessing new opportunities:
Dislocation has provided development led opportunities
Investment product development and new investment partner relationships progressing
Unwavering commitment to health and safety

Questions

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London: Elephant Park
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Sydney: Artist’s impression of One Sydney Harbour – on Gadigal Country

2021 Half Year Results Appendix 22 February 2021

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Overview

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

Boston: Clippership Wharf
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Lendlease HY21 Financial Results

Lendlease HY21 Financial Results 4

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

Lendlease HY21 Financial Results 5
----- End of picture text -----

Lendlease HY21 Financial Results 6

Lendlease HY21 Financial Results

Lendlease HY21 Financial Results 9

Lendlease HY21 Financial Results 10

Group Financials

Singapore: Retail Mall, Paya Lebar Quarter

Lendlease HY21 Financial Results 12

Income Statement (Statutory Result)

HY20 balances have been restated to include the Services business and retained Engineering projects as part of continuing operations.
HY20 Earnings per Stapled Security has been updated to reflect the equity raise in FY20.

$m HY201,2	HY21
Revenue from contracts with customers 6,519 Other revenue 90 Cost of sales (6,054)	4,868
	62
	(4,476)
Gross profit 555	454
Share of profit of equity accounted investments 67 Other income 277 Other expenses (478)	19
	212
	(372)
Results from operating activities from continuing operations 421	313
Finance revenue 5 Finance costs (81)	6
	(73)
Net finance costs (76)	(67)
Profit before tax from continuing operations 345	246
Income tax expense from continuing operations (77)	(52)
Profit after tax from continuing operations 268	194
Profit after tax from discontinued operations 45 Profit after tax 313 Profit after tax attributable to: Members of Lendlease Corporation Limited 281 Unitholders of Lendlease Trust 32	2
	196

	171
	25
Profit after tax attributable to securityholders 313	196
External non controlling interests -	-
Profit after tax 313	196
Earnings per Stapled Security from continuing operations cents 45.6 Earnings per Stapled Security cents 53.2	28.2
	28.5

Lendlease HY21 Financial Results

Reconciliation of Operating Profit[1]

	$m HY202 HY21
	Core Operating Profit After Tax 278 205

	Add / (less): Investment properties revaluations3 (1) -
	Add / (less): Financial assets revaluations3 18 5
	Add / (less): Equity accounted investments revaluations3 13 (12)
	Add / (less): Impairment losses relating to intangibles - -
	Total Non Operating Items (post tax) 30 (7)
	Non Core Profit After Tax 5 (2)
	Profit after tax attributable to securityholders 313 196

Statutory profit adjusted for non operating items. These include noncash backed property related revaluation movements of Investment Property, Other Financial Assets and Equity accounted Investments in the Investments segment, and other noncash adjustments or non-recurring items such as impairment losses relating to Goodwill and other Intangibles.
The tax impact of adjustments has been estimated by applying weighted average tax rates.
Assets in the Investments segment only.

Lendlease HY21 Financial Results

Underlying operating cash flow[1,2]

Balances include cash flows relating to both continuing and discontinued operations.
H2 FY16 – FY20 historical EBITDA and underlying operating cash flow has been restated to align with the change to operating profit reporting. Underlying cash flow has been adjusted to exclude Investments segment property revaluations crystallised upon sale of assets.
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.
Cash conversion is nonmeaningful for HY21.

Cash conversion (5 years) ($m)

Underlying operating cash flow has been included to provide a more accurate cash comparator against Group EBITDA
This represents 86% of Group EBITDA over the 5 year period
If the $525m Engineering exit costs are excluded, cash conversion in FY20 is 113%

Reconciliation[3] (5 years) ($m)

Lendlease has delivered underlying operating cash flow of $3.2b from H2 FY16 to HY21
$0.9b has been paid in interest and tax
Since H2 FY16, $1.1b (32%) of the Group’s underlying operating cash flow has been reinvested into development inventories[4]
$0.8b 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)[5]

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Total conversion against EBITDA of 86%
Cash
187% 109% 97% 21% 961% n/m [6]
Conversion
1,140
Group 541 945
Operating
EBITDA 1,012 1,238 913 429
656
673
Underlying 139 70
operating
(735)
cash flow
2H16 FY17 FY18 FY19 FY20 HY21
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5 year cash conversion 86% 3,781 798 3,240 1,052 861 529 Operating Interest and Net Adjustment Underlying Operating cash flow tax paid investment from investing operating EBITDA into cash flow cash flow development inventory

Lendlease HY21 Financial Results 15

In HY21 Lendlease delivered underlying operating cash flow of $(735)m

HY21 underlying operating cash flow[1]

HY21	In HY21 Lendlease delivered underlying operating cash flow of $(735)m
underlying operating cash flow1 1. Balances include cash flows relating to both continuing and discontinued operations.	$m Statutory Adjustments Underlying
	Cash Flows from Operating Activities Cash receipts in the course of operations 5,104 - 5,104 Cash payments in the course of operations (5,534) (253)1 (5,787) Dividends/distributions received 33 - 33 Deconsolidation of development entities - (172)2 (172) Realised gains on sale of assets - 873 87 Interest received 5 (5) - Interest paid in relation to other corporations (80) 80 - Interest in relation to lease liabilities (10) 10 - Income tax paid in respect of operations (57) 57 -
	Net cash provided by operating activities (539) (196) (735)
	Cash Flows from Investing Activities Sale/redemption of investments 111 (87)3 24 Acquisition of investments (161) - (161) Acquisition of/capital expenditure on investment properties (70) - (70) Net loan drawdowns from associates and joint ventures (7) - (7) Disposal of consolidated entities (net of cash disposed and transaction costs) (320) 1722 (148) Disposal of property, plant and equipment 2 - 2 Acquisition of property, plant and equipment (22) - (22) Acquisition of intangible assets (32) - (32) Net increase in development inventory - 2531 253
	Net cash used in investing activities (499) 338 (161)

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 decrease in development inventory

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

2. Cash proceeds/disposed from sell down of development entities

Net cash disposed from deconsolidation of 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 realised gains/losses on sale of assets included in EBITDA. Accordingly, gains on disposal are reclassified as an operating activity. This does not include the crystallisation on sale of historical property revaluations in the Investments segment which are excluded from Operating EBITDA

Lendlease HY21 Financial Results 16

Portfolio Management Framework

Targets represent PMF refresh following strategy update in August 2020 and reflects change to operating earnings focus where relevant.
HY21 has been calculated on Core Operating Earnings.
Comparative value is closing FY20 balance.
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.
Through-cycle target based on rolling three to five year timeline.

	Target1	HY20	HY21
Total Group Metrics
Core Operating ROE	8-11%	8.7%	5.9%
Distribution payout ratio2	40-60%	54%	50%
Gearing3	10-20%	5.7%	12.9%
Core Business EBITDA Mix
Development	40-50%	46%	52%
Construction	10-20%	17%	22%
Investments	35-45%	37%	26%
Core Business Segment Returns
Development ROIC4	10-13%5	7.3%	7.2%
Construction EBITDA margin	2-3%	2.3%	3.0%
Investments ROIC4	6-9%5	9.1%	5.3%
Segment Invested Capital Mix3
Development	40-60%	56%	58%
Investments	40-60%	44%	42%
Regional Invested Capital Mix3
Australia	40-60%	42%	47%
Asia	10-25%	17%	15%
Europe	10-25%	22%	24%
Americas	10-25%	19%	14%

Lendlease HY21 Financial Results

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.
H2 FY16 inputs include the Engineering and Services businesses.

Operating Profit after Tax ($m)

HY20 HY21

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186
177
169
96
59 59
Investments Construction
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Development

ROIC[1] (Development and Investments), EBITDA margin (Construction)

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HY20 HY21
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10.0%
5 year average
9.1%
7.2%
7.3% 7.2% 5 year average
5.3%
2.5%
2.3% 5 year average [2]
3.0%
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Development ROIC

Investments ROIC

Construction EBITDA margin

Operating EBITDA ($m)

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HY20 HY21
----- End of picture text -----

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

272
244
224
121
101 104
Development Investments Construction
----- End of picture text -----

Invested capital (Development and Investments) ($b)

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HY20 FY20 HY21
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5.3
5.0
4.8
3.9
3.7 3.6
Development Investments
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Lendlease HY21 Financial Results

Exchange rates

Income Statement

Local	Foreign	HY201	FY202	HY213
AUD	USD	0.68	0.67	0.73
AUD	GBP	0.54	0.53	0.55
AUD	EUR	0.62	0.61	0.62
AUD	SGD	0.94	0.93	0.99

Statement of Financial Position

Local	Foreign	HY204	FY205	HY216
AUD	USD	0.70	0.69	0.77
AUD	GBP	0.53	0.56	0.56
AUD	EUR	0.63	0.61	0.63
AUD	SGD	0.94	0.96	1.02

Average foreign exchange rate for the half year 2020.
Average foreign exchange rate for the full year 2020.
Average foreign exchange rate for the half year 2021.
Spot foreign exchange rate at 31 December 2019.
Spot foreign exchange rate at 30 June 2020.
Spot foreign exchange rate at 31 December 2020.

Lendlease HY21 Financial Results 19

HY21 regional EBITDA to PAT reconciliation

Statutory earnings adjusted for non operating items. These include noncash backed 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.
Depreciation and amortisation.

$m Australia Development Construction Investments	Operating EBITDA1 Net interest D&A2 PBT Tax 173 (1) (1) 171 (50) 57 - (5) 52 (16) 62 - (3) 59 (15)	Operating PAT1
		121
		36
		44
Total Australia	292 (1) (9) 282 (81)	201
Asia Development Construction Investments	(2) - (1) (3) - 11 - (2) 9 (3) 28 - - 28 5
		(3)
		6
		33
Total Asia	37 - (3) 34 2	36
Europe Development Construction Investments	83 3 (3) 83 (17) 15 (1) (4) 10 (2) (4) - - (4) 1
		66
		8
		(3)
Total Europe	94 2 (7) 89 (18)	71
Americas Development Construction Investments	(10) - (1) (11) 4 21 (1) (7) 13 (4) 35 (1) (3) 31 (9)
		(7)
		9
		22
Total Americas	46 (2) (11) 33 (9)	24
Corporate Group Services GroupTreasury	(54) (7) (45) (106) 29 (10) (59) - (69) 19
		(77)
		(50)
Total Corporate	(64) (66) (45) (175) 48	(127)
Total Core Business	405 (67) (75) 263 (58)	205
Non Core	24 - (31) (7) 5	(2)
Total Group	429 (67) (106) 256 (53)	203

Lendlease HY21 Financial Results 20

Debt metrics

		HY20	FY20	HY21
Net debt1	$m	2,294	833	1,819
Borrowings to total equity plus borrowings	%	34.2	25.7	28.0
Net debt to total tangible assets, less cash1	%	14.7	5.7	12.9
Interest cover2	times	7.4	2.8	6.7
Average cost of debt	%	3.6	3.4	3.3
Average debt maturity	years	3.9	4.2	4.3
Average debt mix fixed: floating	ratio	49:51	56:44	82:18
Undrawn facilities	$m	2,009	4,226	3,813

FY20 and HY20 includes cash and cash equivalents which have been classified as Disposal Group assets held for sale.
EBITDA plus interest income, divided by interest finance costs, including capitalised finance costs. EBITDA has been adjusted to exclude one off items related to the Engineering business (FY20: $525m).

Lendlease HY21 Financial Results

Debt facilities and maturity profile

Debt facilities[1] ($m)

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Drawn Facility
1,800
960
714 725
535 535 535 516 516 494 494
300 293 293
173
- - - - 69 79 79
Euro CP UK Bond Syndicated Syndicated Club Asia Loan CNY bank US$ Reg. S S$ Reg. S Green Bond A$ medium
Programme Issue cash loan facility Revolving Facility facility notes notes term notes
advance Credit
facility Facility
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Debt maturity profile[2] ($m)

Values are shown at amortised cost. 2. Values are shown at gross facility value.

Euro CP Programme Syndicated cash advance facility Club Revolving Credit Facility CNY bank facility S$ Reg. S notes Green Bond

UK Bond Issue Syndicated loan facility Asia Loan Facility US$ Reg. S notes A$ medium term notes Undrawn

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300
714
900
900 960
173
536 536 519 500 80
294
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
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Lendlease HY21 Financial Results 22

Key dates for investors

	Date
HY21 results released to market / interim distribution declared	22 February2021
Securitiesquoted ex distribution on the Australian Securities Exchange	26 February2021
Interim distribution record date	1 March 2021
Interim distributionpayable	17 March 2021
FY21 results released to market / final distribution declared	16 August 2021
Annual General Meetings	12 November 2021

Development Segment

Chicago: The Reed, Southbank Artist's impression Image subject to change and further design development and planning approval

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Lendlease HY21 Financial Results 24
ROIC target
Earnings drivers
10-13%
Invested capital
Development
$5.0b
Pipeline [1]
$109.5b
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Urbanisation
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Communities
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$96.2b[1]

17 projects

Including 22 major projects in 10 gateway cities

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Apartments Apartments
Commercial Communities
for Sale for Rent
$29.9b $13.3b
$42.0b $24.3b
pipeline pipeline
pipeline pipeline
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Production target of $8b+ p.a.

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

Lendlease HY21 Financial Results

Development HY21

Comparative period the half year ended 31 December 2019.
International Quarter London.
Total estimated project revenue of all development work secured (representing 100% of project value).
End value of Development Pipeline in delivery as at period end (representing 100% of project value).
Project end value on product completed during a financial period (representing 100% of project value).

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]

Progress on converting opportunities from the pipeline remained difficult given the challenging operating environment
Investment partnership with Mitsubishi Estate to deliver tower 1, One Sydney Harbour contributed $147m to EBITDA
Apartments for sale settlements: 440, down from 862:
Elephant Park and Deptford Landings, London Melbourne Quarter, East Tower
New commencements:

TRX Residences Tower B, Kuala Lumpur: 453 apartments

100 Claremont, New York: 166 apartments
Ardor Gardens, Shanghai: 878 apartments
Development management fees across projects in delivery
Divestment of 50% interest in IQL[2] North and associated 50% acquisition of IQL[2] South contributed $31m to EBITDA
Completion of Two Melbourne Quarter: c.51,000sqm office tower
Australian Communities: Settlements: 1,043 lots, up 25% Sales: 800 lots, up 29%

Performance		HY20	HY21
Core business EBITDA mix	%	46	52
ROIC	%	7.3	7.2
Invested capital	$b	5.3	5.0

Outlook

Two new urbanisation projects secured in partnership with Aware Super:
- 1 Java St, New York (Lendlease 20% interest): $1.0b[3 ]
La Cienega Blvd, Los Angeles (Lendlease 50% interest): $0.8b[3]
• Preferred bidder on Birmingham Smithfield: $2.7b[3]
$109.5b[3] development pipeline:
- Urbanisation: 22 major projects in 10 gateway cities
- Communities: 17 projects with c.45,000 lots
Work in Progress[4] : $12.2b
- $4.5b apartments for sale $2.1b apartments for rent $5.2b commercial $0.4b Communities
Communities settlements to remain below 3,000–4,000 target in FY21
• Remaining pipeline of $97.3b
Targeting more than $8b per annum in production[5]
Targeting to convert over $20b of existing pipeline to work in progress by end of FY23, or approximately $8b per annum

Lendlease HY21 Financial Results

Development earnings / pipeline

Total estimated project revenue of all development work secured (representing 100% of project value).
FY17 includes Australia Retirement pipeline. FY18 onwards excludes Australian Retirement pipeline which is now included in the Investments segment following the Retirement Living transaction. From FY20, Retirement product in Asia has been included within Urbanisation.
FY18, FY19 and FY20 include $0.1b, $0.2b and $0.3b of Infrastructure pipeline respectively.
Project end value on product completed during a financial period (representing 100% of project value).

EBITDA ($m)

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272
244
HY20 HY21
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HY21 pipeline[1] by product

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Apartment for sale Apartment for rent
Commercial Communities
12%
38%
28% $109.5b
22%
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Pipeline[1] ($b)

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113.0³
109.5
76.1³
71.1³
49.3²
FY17 FY18 FY19 FY20 HY21
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Production[4] ($b)

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5.6
5.0
4.6
4.0
1.8
FY17 FY18 FY19 FY20 HY21
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Lendlease HY21 Financial Results

Pipeline[1] provides long term earnings visibility:

$12.2b Work in Progress and $97.3b remaining

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

Apartments for Sale ($b)

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In Delivery Remaining
11% $4.5b WIP
$42.0b
89%
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Commercial ($b)

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In Delivery Remaining
$5.2b WIP
17%
$29.9b
83%
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Apartments for Rent ($b)

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In Delivery Remaining
9% $2.1b WIP
$24.3b
91%
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Communities ($b)

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In Delivery Remaining
3% $0.4b WIP
$13.3b
97%
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Lendlease HY21 Financial Results

Work in Progress by product

Apartments for Sale – WIP ($b)

Commercial – WIP ($b)

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5.7
5.2
4.5
3.9
FY20 HY21 FY20 HY21
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Apartments for Rent – WIP ($b)

Communities – WIP ($b)

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2.2
FY20
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2.1
0.5 0.4
HY21 FY20 HY21
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Lendlease HY21 Financial Results

Urbanisation development

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

HY21 apartment settlements

HY21 apartment settlements
	Ownership	Units	$m
Apartments for sale
Australia
Melbourne Quarter - East Tower	50%	225	159
Total Australia		225	159
Europe
Elephant Park - Park Central North (Affordable)	100%	91	56
Elephant Park - East Grove (Affordable)	100%	75	45
Elephant Park - West Grove (Building 2)	100%	16	25
Deptford Landings - Cedarwood Square	100%	25	25
Other		4	9
Total Europe		211	160
Total Americas		4	27
Total apartment for sale settlements		440	346

Apartments for rent	Apartments for rent
City	Project	Building	Ownership			Units	End value1 ($b)
Chicago	845 West Madison	845 West Madison	37.5%			586	0.4
Commercial completions
City	Project	Building	Ownership	Sector	Capital model	sqm ‘000	End value1 ($b)
Melbourne	Melbourne Quarter	Two Melbourne Quarter	-	Office	Fund through	51	0.6

Lendlease HY21 Financial Results 30

Communities

Chiswick – Englobo sale.

Communities settlements

Communities settlements
	HY20		HY21
	Lots	$m	Lots	$m
Queensland	208	49	434	92
New South Wales	5	2	188	67
Victoria	544	143	339	92
South Australia	54	9	20	2
Western Australia	25	6	62	15
Total Australia	836	209	1,043	268
Total Europe	-	-	11	54
Total	836	209	1,044	322
Communities sales
	HY20		HY21
	Lots	$m	Lots	$m
Queensland	213	52	375	93
New South Wales	226	85	64	24
Victoria	97	28	247	64
South Australia	50	7	22	2
Western Australia	34	9	92	20
Total Australia	620	181	800	203
Total Europe	-	-	11	54
Total	620	181	801	257
Totalpresales	2,060	597	1,482	405

Lendlease HY21 Financial Results

Apartment settlements and completion profile:

$6.6b Work in Progress

Closing presales balance as at 31 December 2020.
Based on expected completion date of underlying buildings, subject to change in delivery program. Not indicative of cash or profit recognition.
Project information is commercial in confidence.

			Total			Units	Presales1	Delivery
City	Project	Building	units	Ownership	Presold	presold1	($b)	Date2
Residential for sale apartments
Boston Chicago	Clippership Wharf Lakeshore East	Building 4 Cirrus	114 350	100% 42.5%	94% -3	107 -3	0.1 -3	FY21 FY22
Manchester	Potato Wharf	Potato Wharf Block 3 & 4	191	100%	79%	151	0.1	FY22
London	Elephant Park	MP4 - H11A4	104	100%	100%	104	0.1	FY23
New York	100 Claremont	100 Claremont	166	31.5%	-3	-3	-3	FY23
Sydney	Barangaroo South	One Sydney Harbour Tower 1	317	75%	78%	246	1.6	FY24
Kuala Lumpur The Exchange TRX		TRX Residences - Tower A & B	896	60%	32%	284	0.2	FY24
London	Elephant Park	Park and Sayer	301	100%	33%	99	0.1	FY25

			Total		Delivery
City	Project	Building	units	Ownership	date2
Residential	for rent apartments
London	Elephant Park	East Grove and Park Central North	663	20.0%	FY21
Shanghai	Ardor Gardens	Ardor Gardens	878	100.0%	FY22
Chicago	Lakeshore East	Cascade	503	42.5%	FY22
London	Elephant Park	MP4 - H11A	118	50.0%	FY23
Chicago	Southbank	BuildingE	217	50.1%	FY23
London	Elephant Park	Park and Sayer	123	50.0%	FY25

Affordable housing units presold within apartment for rent buildings.

Lendlease HY21 Financial Results

Commercial completion profile

$5.2b Work in Progress

City	Project	Capital model	Ownership	sqm '0001	Building	Completion date2
Melbourne	Melbourne Connect	BOOT3	10%	40	Melbourne Connect	FY21
Milan	Milano Santa Giulia	Fund through4	50%	28	Spark One	FY22
Milan	Milano Santa Giulia	Fund through4	50%	18	Spark Two	FY22
Sydney	Sydney Place	Joint venture	20%	58	Salesforce Tower	FY23
Kuala Lumpur	The Exchange TRX	Joint venture	60%	122	Retail	FY23
Sydney	Victoria Cross over station development	Joint venture	75%	58	Victoria Cross over station development	FY25
Total				324

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

Lendlease HY21 Financial Results 33

Conversion of secured pipeline

Indicative conversion timing[1] of secured residential for sale pipeline to FY25

City Buildings Units	FY21	FY22 FY23 FY24 FY25
Sydney2 2 534
Chicago3 4 1,056
London4 10 2,144
San Francisco5 1 333
Perth6 2 377
Melbourne7 4 1,881
Kuala Lumpur8 4 1,430
Milan9 3 722
Brisbane10 1 254
Total 31 8,731

Indicative conversion timing[1] of secured residential for rent pipeline to FY25

Subject to planning approvals, contractual conditions and market.
Barangaroo South.
Southbank, Lakeshore East.
Silvertown Quays, Deptford Landings, International Quarter London, Elephant Park.
30 Van Ness.
Waterbank.
Victoria Harbour and Melbourne Quarter.
The Exchange TRX.
Milano Santa Giulia.
Brisbane Showgrounds.
Across three districts.

City Project Buildings Units	FY21	FY22 FY23 FY24 FY25
London Deptford Landings - Stage 1 1 251
Milan Milan Innovation District 1 273
London Deptford Landings - Stage 2 1 189
Chicago Southbank - Stage 1 1 295
London High Road West 2 441
Los Angeles La Cienega 1 260
New York 1 Java 1 848
Chicago Southbank - Stage 2 1 302
San Francisco BayArea San Francisco Bay Area project 711 c.2,600
Total 16 5,459

Lendlease HY21 Financial Results

Conversion of secured pipeline

Indicative conversion timing[1] of secured commercial pipeline to FY25

City	Project	Buildings	Sector	sqm ‘0002
Melbourne	Melbourne Quarter	1	Office	75
Kuala Lumpur	The Exchange TRX	2	Hotel / Office	47
Brisbane	Brisbane Showgrounds	1	Office	32
Milan	Milan Innovation District – Stage 1	6	Hotel / Office	100
London	International Quarter London – Stage 1	1	Office	34
San Francisco	30 Van Ness	1	Office	25
Perth	Waterbank	1	Office	11
Milan	Milano Santa Giulia – Stage 1	8	Office / Retail	103
London	Elephant Park	1	Office	44
Chicago	Southbank	1	Office	21
London	International Quarter London – Stage 2	2	Office	61
London	Silvertown Quays	4	Office	47
Los Angeles	La Cienega	1	Office	23
Milan	Milan Innovation District – Stage 2	3	Office / Retail	33
Milan	Milano Santa Giulia – Stage 2	1	Office	20
Total		34		676

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

Lendlease HY21 Financial Results

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.
Total estimated project revenue of all development work secured (representing 100% of project value).
Victoria Cross over station development.
During the period, the Group disposed of its 50 per cent stake in International Quarter London – North and purchased the remaining 50 per cent stake in International Quarter London – South.
Commercial in confidence.

Region	Project Project secured Delivery commenced1 Completion date2 Residential backlog units Commercial backlog sqm ‘0003 Estimated end value ($b)4 Land payment model
Australia	Barangaroo South, Sydney FY09 FY12 FY26 851 1 4.2 Staged payment
	Brisbane Showgrounds, Brisbane FY09 FY11 FY33 2,206 67 2.1 Land management
	Victoria Harbour, Melbourne FY01 FY04 FY29 2,041 - 2.0 Land management
	Sydney Place, Sydney FY12 FY17 FY23 - 58 1.9 Upfront payment
	Melbourne Quarter, Melbourne FY13 FY16 FY26 769 75 1.7 Land management
	Waterbank, Perth FY13 FY22 FY29 1,308 12 1.4 Land management
	Victoria Cross, Sydney5 FY19 FY20 FY25 - 58 1.2 Staged payment
Asia	The Exchange TRX, Kuala Lumpur FY14 FY17 FY28 2,326 168 3.3 Staged payment
Europe	Thamesmead Waterfront, London FY20 FY25 FY40+ 11,500 82 14.5 Land management
	Euston Station, London FY18 FY26 FY40+ 2,000 400 10.5 Land management
	Silvertown Quays, London FY18 FY22 FY33 3,000 440 6.4 Land management
	Milano Santa Giulia FY18 FY20 FY34 2,558 232 3.9 Land management
	Milan Innovation District FY19 FY21 FY32 1,125 338 3.7 Staged payment
	International Quarter London6 FY10 FY14 FY29 351 149 3.2 Staged payment
	Elephant Park, London FY10 FY12 FY26 1,734 50 2.9 Staged payment
	High Road West, London FY18 FY22 FY30 2,501 14 2.0 Land management
	Deptford Landings, London FY14 FY16 FY28 1,250 9 1.3 Upfront payment
Americas	San Francisco Bay Area project FY20 FY22 FY37 15,000 n/a7 20.0 Land management
	Lakeshore East, Chicago FY19 FY20 FY26 1,197 2 2.0 Staged payment
	Southbank, Chicago FY15 FY16 FY27 1,526 24 1.7 Upfront payment
	30 Van Ness, San Francisco FY17 FY22 FY25 333 25 1.5 Upfront payment
	1 Java, New York FY21 FY24 FY27 848 2 1.0 Upfront payment
Other urbanisation projects 2,217 121 3.8
Total urbanisation 56,641 2,327 96.2

Lendlease HY21 Financial Results

Communities

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

Key metrics

$13.3b pipeline[1]
16 projects across five Australian states, 1 US project
c.45,000 lot pipeline
Target settlements: 3,000 – 4,000 lots p.a.

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Queensland
c.28,245 land lots
• Elliot Springs
• Springfield Lakes
• Yarrabilba
• Shoreline
Northern
Territory
WesternAustralia
New South Wales
c.1,575 land lots
c.7,460 land lots
• Alkimos Beach
• Alkimos Vista • Bingara Gorge
• Calderwood Valley
• Figtree Hill
• Jordan Springs
South Australia • The New Rouse Hill
• Kings Central
c.25 land lots
• Blakes Crossing
Victoria
Tasmania
c.6,485 land lots
• Atherstone
• Aurora
• Harpley
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Lendlease HY21 Financial Results

Capital efficient business model

Land price and timing agreed upfront at either a fixed value or percentage of end value. Transfer of land plots may occur upfront, or, be staged to match payment schedule. Draw down of land plots at Developer discretion within longstop dates.
Land acquired and fully transferred to the Developer upfront.

$1.6b of invested capital in land and infrastructure controls $109.5b development pipeline

HY21 development pipeline – land payment structure

HY21 development invested capital

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Land management Staged payment¹
Upfront payment²
9%
>90%
capital efficient
24%
$110b
71%
67%
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Production Land and Infrastructure
36%
32%
64%
$5.0b
68%
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Land management model

Master plan flexibility

Land management model facilitates staged drawdown of land
Pricing at drawdown or completion of individual plots
Pause development in uneconomic or weak market conditions
Revenue share based on projected revenue
Staged infrastructure contributions to manage capital at risk
Ability to remix master plan in partnership with land owner
Downside protection:
Milestones and sunsets structured to provide flexibility
Residual land value flexes
Ability to enhance master plan yield in partnership with land owner overtime
Share in upside value creation
Land owner shares value capture of ‘placemaking’

Lendlease HY21 Financial Results 38

Investment partner funding model - example

Example assumes Lendlease retains 25% stake during Development phase

Case study: International Towers Sydney, Barangaroo South (Towers 2 & 3)

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Planning Development Investment
Development management fees FUMfees
FUMfees
FUM
Performance fees
Dev.
profit on
Potential retained
Dev. profit + Project stake
revaluation capital Investment
partner
capital
Enter delivery
Lendlease co-investment
Lendlease capital
TIME
CAPITAL
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Key features

Secured in 2009 to regenerate large mixed use precinct
Concept plan approved 2010
Tenant pre-commitment of c.70% across two towers
c.$2b Lendlease International Towers Sydney Trust (LLITST) created to forward fund the towers in2012:
Investment partners 75%
Lendlease 25% co-investment
Profit streams through the lifecycle of project:
Upfront sell-down profit
Development management fees
Performance fees
FUM fees
Introduce investment partner prior to entering delivery:
Profit upfront on sell-down and potential revaluation of retained stake under single asset and programmatic models
Typically no or limited profit upfront under partnership model approach where Lendlease and partner originate the deal together
Under all models, potential for Lendlease to earn development management fee and FUM fees during delivery
Typically small Lendlease co-investment post-completion with ongoing management rights and FUM fees
Structure adopted on:
International Towers Sydney, Barangaroo (commercial): Single asset model
International Quarter London (commercial): Single asset model
Milano Santa Giulia: Programmatic model
Investment partners received attractive returns:
Value from additional leasing
Above market rents through placemaking
Cap rate compression on completion of towers
2020 – 10 years after securing the project:
All development profit converted to cash
Co-investment 3.9% (c.$150m)
FUM of $4.8b
Paya Lebar Quarter: Partnership model

Construction Segment

Melbourne: Two Melbourne Quarter and East Tower – on Kulin Nation Country

Lendlease HY21 Financial Results 40 EBITDA margin target 2-3% Backlog $14.5b

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Australia
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Asia
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Europe
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Americas
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Revenue in the last 6 months $1.4b

Revenue Revenue Revenue in the last in the last in the last 6 months 6 months 6 months $0.1b $0.4b $1.5b

$8.2b Backlog realisation

$0.7b Backlog realisation

$2.0b Backlog realisation

$3.6b Backlog realisation

H2 FY21	FY22		Post FY22	H2 FY21	FY22		Post FY22	H2 FY21	FY22		Post FY22	H2 FY21	FY22		Post FY22
19%	38%		43%	32%	57%		11%	33%	51%		16%	33%	33%		34%

External Backlog		Internal Backlog		External Backlog		Internal Backlog		External Backlog		Internal Backlog		External Backlog		Internal Backlog
$6.8b			$1.4b	$0.1b			$0.6b	$1.8b			$0.2b	$3.1b			$0.5b

Lendlease HY21 Financial Results 41

Construction HY21

From external clients, unless otherwise stated.
Comparative period the half year ended 31 December 2019.
Includes all Construction projects with backlog greater than $100m, which represents 82% ($11.9b) of secured backlog.

Overview

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

Drivers[2]

Revenue of $3.4b, EBITDA of $104m:
Revenue down 21% with activity affected by ongoing productivity impacts across sites and delays in commencements of newly secured work
EBITDA margin 3.0%, up from 2.3%:
Solid rebound from a break even result in H2 FY20 as business negotiated COVID-19
Portfolio performed well across all regions
Performance aided by contribution from a number of projects nearing or reaching completion
Cost management implemented in response to COVID-19 had a positive impact on returns
New work secured of $4.9b, up from $3.1b:
Public sector activity in Australia and Europe the main source of new work secured
Australia: $2.3b, up from $1.9b includes Defence projects, Tweed Valley Hospital and Geelong Arts Centre
Europe: $1.2b, up from $0.1b, predominantly for Government clients across social infrastructure
US: $1.2b, well below historical averages reflecting subdued activity in key markets along with delays in projects being brought to market

Performance		HY20	HY21
Core business EBITDA mix	%	17	22
EBITDA margin	%	2.3	3.0
New work secured	$b	3.1	4.9
Backlog	$b	14.2	14.5

Outlook[2]

Backlog revenue of $14.5b, up from $14.2b:
Diversified by sector, client and target market/geography
Major project[3] sector exposures: Commercial 30%, Defence 29%, Social Infrastructure 18%, Residential 15%
Major project[3] client breakdown: Government 54%; Corporate 29%; Internal 17%
Australia $8.2b: RAAF Tindal Stage 6, Tweed Heads Valley Hospital, Sydney Metro Martin Place Integrated Station Development, One Sydney Harbour tower 1
Americas $3.6b: Privatised Army Lodging, 4 Hudson Square
Backlog realisation:
H2 FY21: 25%
FY22: 39%
Post FY22: 36%
Preferred on more than $3b including:
Australia: Caboolture Hospital, New Performing Arts Venue, defence projects
Americas: mix of residential and commercial projects
Asia: The Exchange TRX – Hotel and Office
Europe: urbanisation projects at Elephant Park, Deptford and International Quarter London

Lendlease HY21 Financial Results 42

Construction

EBITDA ($m) & EBITDA margin (%)

Backlog ($b)[2]

External Internal

Includes all Construction projects with backlog greater than $100m, which represents 82% ($11.9b) of secured backlog.
FY17 – FY19 internal and external backlog presentation derived based on Construction projects with backlog greater than $100m.

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3.0%
2.3%
101 104
HY20 HY21
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HY21 backlog by client

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Lendlease Corporate Government
17%
Major Project [1]
54% Backlog
29%
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15.7 15.2 15.6
14.5
13.9
2.7
11.8
FY17 FY18 FY19 FY20 HY21
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HY21 backlog by sector

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Commercial
Defence
Social Infrastructure
8%
Residential
15% 30%
Other
Major Project [1]
Backlog
18%
29%
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Lendlease HY21 Financial Results

Construction backlog by region

Internal revenue not included in the Construction segment financial performance.
Ratio calculated as new work secured over external revenue realised to the nearest million.
Run-off includes revenue on internal integrated projects.

External

Internal

Group ($b)[1]

Australia ($b)

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4.9 (3.9) 2.3 (1.6)
8.2
14.2 13.9 (0.4) 14.5 6.7 7.5 1.4
2.5 2.7 1.8
3.3 1.4
11.7 10.6 Book to bill²: 1.4 11.8 5.3 5.7 Book to bill²: 1.6 6.8
HY20 FY20 New work Run-off³ FX & Other HY21 HY20 FY20 New work Run-off³ HY21
secured secured
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Europe ($b)

Americas ($b)

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1.2 (0.5)
2.0 5.3 1.2 (1.6)
0.2
0.2 4.4
1.4 1.3 (0.4) 3.6
0.6
0.2
0.3 0.5
1.8 5.1
1.2 1.0 Book to bill²: 2.7 3.8 Book to bill²: 0.8 3.1
HY20 FY20 New work Run-off³ HY21 HY20 FY20 New work Run-off³ FX & Other HY21
secured secured
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Lendlease HY21 Financial Results 44

Construction Major new projects secured[1,2]

Disclosure of major projects is subject to client approval. This could impact the projects available for disclosure.

		Contract	Completion
Project	Location	type3	date4	Sector
Australia
NCIS-3 HMAS Stirling and Henderson	WA	MC	FY25	Defence
AIR 7000 Phase 1B AIR 555	SA	MC	FY24	Defence
Tweed Heads Valley Hospital	NSW	D&C	FY23	Social Infrastructure
555 Collins Street	VIC	D&C	FY23	Commercial
Europe
HMP Glen Parva	Leicester	D&C	FY23	Social Infrastructure
Manchester Town Hall	Manchester	MC	FY24	Social Infrastructure
Camden Town Hall	London	D&C	FY22	Social Infrastructure
2 Ruskin Square	London	D&C	FY23	Commercial
Americas
4 Hudson Square	New York	GMP	FY24	Commercial
100 Claremont	New York	CP	FY23	Residential

New major projects secured comprise 71% of total new work secured
Contract types are Managing. Contractor (MC), Design and Construct (D&C), Guaranteed Maximum Price (GMP), Cost Plus (CP).
Based on expected completion date of underlying buildings, subject to change in delivery program.

Investments Segment

Singapore: Paya Lebar Quarter

Lendlease HY21 Financial Results 46

Earnings drivers Investments

ROIC target 6-9%[1]

Invested capital $3.6b

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Ownership Earnings
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Capital intensive activities

Co-investment positions in managed funds

Retirement Living $1.4b invested capital

Other $0.4b invested capital

$1.9b

invested capital

Returns and metrics

Distribution and capital growth

Equity investment returns

High quality assets driving Occupancy rate, turnover rental income, occupancy rate, growth rate, discount and asset valuations rate and opex

Occupancy rate, growth rate, discount rate and opex

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Management Earnings
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Capital light activites

Funds Commercial asset Residential asset management management management $37.9b $14.9b $12.7b FUM AUM AUM

Returns and metrics

Funds management fees

Property and development Property and development management fees management fees

Revenue margin, growth in FUM/AUM, asset performance and operating leverage

Operating profit based measure, excluding property revaluations.

Lendlease HY21 Financial Results 47

Investments HY21

Operating profit based measure, excluding property revaluations.
Comparative period the half year ended 31 December 2019, unless otherwise stated.
Paya Lebar Quarter.
Prior corresponding period. 5. Secured future FUM from funds or mandates with development projects.
Agreement to sell down entered post balance date.

Overview

Owns and/or manages investments including a leading investment management platform and the Group’s ownership interests in residential, office, retail, industrial, retirement and infrastructure investment assets
Financial returns include fund and asset management fees, and yields and capital growth on ownership interests

Drivers[2]

Management EBITDA $71m, down from $120m
Funds management revenue of $79m, down from $133m: o Lower performance fees with large PLQ[3] fee in pcp[4] o Steady base fees
FUM growth of 3%: additions of $3.5b including TCorp mandate of $2.0b, valuation declines of $0.2b and FX translation reduction of $1.3b
Asset management revenue of $45m, down from $57m: o Lower retail asset management fees
Residential the largest sector exposure
AUM decline of 6% with FX translation impact more than offsetting $0.6b of additions
Ownership EBITDA $50m, down from $104m:
Recovery from worst of the COVID-19 impacts in H2 FY20
Income supressed in a weak operating environment
Higher asset sale profits in pcp[4]
Divestment of US telco business aligned to strategy
Retirement Living returns below target
Office portfolio resilient
Challenging retail operating conditions

Performance1		HY20	HY21
Core operatingbusiness EBITDA mix	%	37	26
ROIC	%	9.1	5.3
Invested capital	$b	3.9	3.6
Management EBITDA	$m	120	71
OwnershipEBITDA	$m	104	50

Outlook

Well positioned to deliver future recurring earnings
Integrated business model key source of growth with >$50b investment grade assets to be created from development pipeline
Progressing product development and new investment partnerships
Management earnings:
FUM of $37.9b, c.150 institutional investors:
Scale platforms in office and retail
Building scale in residential for rent asset class
c.$2.7b of additional secured future FUM[5]
Significant opportunities from remaining development pipeline AUM of $27.6b:
Residential $12.7b: additional fees expected in 2H FY21
Retail $12.0b: occupancy and income expected to recover
o Office $2.9b: opportunities to grow portfolio
Ownership earnings:
Target to grow investment portfolio from current $3.7b: o Co investment positions in urbanisation product
External market opportunities
Continue to recycle capital:
Aware Super acquired a 25%[6] interest in Retirement Living business at book value

Lendlease HY21 Financial Results 48

Investments earnings / ownership

Returns excluding non-cash backed property related revaluation movements of Investment Property, Other Financial Assets, and Equity Accounted Investments in the Investments segment.
Earnings primarily derived from FUM and AUM 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 $3.6b in HY21.

Investments Operating EBITDA[1]

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224
121
HY20 HY21
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Investments[3] by sector ($b)

Residential Office Retail Industrial Retirement Other

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4.0 4.0 3.7
8% 8%
37%
36% 34%
3%
3% 3%
24%
23%
25%
23%
21%
22%
6% 11% 13%
HY20 FY20 HY21
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Investments Operating EBITDA by activity ($m)

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HY20 HY21
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120
104
71
50
Ownership¹ Management²
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FUM/AUM ($b)

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HY20 FY20 HY21
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36.9 36.0 37.9
29.7 29.3
27.6
FUM AUM
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Lendlease HY21 Financial Results

Funds Under Management[1] (FUM)

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

FUM ($b)

CAGR² of 11.2%

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37.9
35.2 36.0
30.1
26.1
FY17 FY18 FY19 FY20 HY21
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HY21 FUM by sector

HY21 FUM by region

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Office Retail Residential Industrial Other
4% [2%]
5%
$37.9b 54%
35%
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Australia Asia Europe Americas
3%
4%
22%
$37.9b
71%
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Lendlease HY21 Financial Results

Assets Under Management[1] (AUM)

The Group’s assessment of market value.
Military Housing not included in FY17FY18.

AUM[2] ($b)

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28.7 29.3
27.6
12.2 12.7
FY17 FY18 FY19 FY20 HY21
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HY21 AUM by sector

HY21 AUM by region

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Residential Retail Office
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Australia Asia Europe Americas
24%
46%
$27.6b
29%
1%
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11%
46%
$27.6b
43%
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Lendlease HY21 Financial Results

FUM[1] by region

Group ($b)

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3.5 (0.1) (0.2) (1.3)
37.9
36.9
36.0
HY20 FY20 Additions Divest- Revaluations FX and HY21
ments Other
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By region ($b)

The Group's assessment of market value.

By region ($b)
	FY20	Addition	Divestment	Revaluation	FX and Other	HY21
Australia	24.7	2.8	(0.1)	(0.1)	(0.6)	26.7
Asia	8.7	0.1	-	-	(0.6)	8.2
Europe	1.6	0.2	-	(0.1)	-	1.7
Americas	1.0	0.4	-	-	(0.1)	1.3
Group	36.0	3.5	(0.1)	(0.2)	(1.3)	37.9

Lendlease HY21 Financial Results 52

Major fund summary[1]

HY21 funds management platform

HY21 funds management platform
									Weighted
	Total assets	Gearing	Co-investment		Region	Sector	# of assets	Occupancy	avg. cap rate
	$b	%	%	$m			#	%	%
Australian Prime Property Fund Commercial	5.7	10.4	8.1	374	Aus	Office	19	95.9	4.7
Lendlease International Towers Sydney Trust	4.6	13.1	3.9	154	Aus	Office	4	95.0	4.8
Australian Prime Property Fund Retail	4.2	26.3	1.9	57	Aus	Retail	10	95.7	5.3
Paya Lebar Quarter	3.1	60.1	30.0	359	Asia	Office and Retail	4	96.5	3.9
Lendlease One International Towers Sydney Trust	2.7	18.6	2.5	53	Aus	Office	1	99.5	4.6
ARIF 3 (Jem)	1.6	41.9	15.1	128	Asia	Office and Retail	1	98.6	4.3
Parkway Parade Partnership Limited	1.3	38.1	10.2	68	Asia	Retail	1	97.0	5.0
Lendlease Global Commercial REIT	1.4	35.0	25.6	248	Asia	Office and Retail	4	99.0	4.5
Lendlease Americas Residential Partnership2	1.3	42.4	50.0	149	Amer	Residential	3	65.5	4.5
Australian Prime Property Fund Industrial	1.1	9.0	10.5	103	Aus	Industrial	35	96.1	5.9

1. Does not comprise Lendlease’s complete Funds Management Platform. 2 . Total assets includes nine buildings (six buildings are under construction and not yet operational). All other metrics refer to the three operational buildings only.

Lendlease HY21 Financial Results

AUM[1] by product

Group ($b)

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29.7 29.3 0.6 (0.1) (0.3) (1.9)
27.6
HY20 FY20 Additions Divest- Revaluations FX and HY21
ments Other
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By product ($b)

	FY20	Addition	Divestment	Revaluation	FX and Other	HY21
Commercial	15.1	0.6	(0.1)	(0.2)	(0.5)	14.9
Residential	14.2	-	-	(0.1)	(1.4)	12.7
Group	29.3	0.6	(0.1)	(0.3)	(1.9)	27.6

The Group's assessment of market value.

Lendlease HY21 Financial Results

Retirement Living

100% of Retirement Living business.
Aware Super acquired a 25% interest in Retirement Living business. Agreement to sell down entered post balance date.

Value drivers1		HY20	HY21
Ownership2	%	75	75
Equity investment	$b	1.4	1.4
Long term growth rate	%	3.5	3.5
Discount rate	%	12.3	12.4
Average length of stay – ILUs	years	11	11
Number of established units	no.	12,825	12,931
Units resold	no.	458	373
Development
Pipeline3	no.	3,786	2,442
Pipeline	$b	1.9	1.4
Sales/Settlements	no.	55	72
Sales/Settlements	$m	27.6	48.0

Queensland 13 villages 2,940 units Northern Territory WesternAustralia New South Wales 10 villages 18 villages 1,637 units 3,418 units South Australia Australian Capital 4 villages 531 units Territory Victoria 3 villages 312 units Tasmania 27 villages 4,093 units

Includes aged care beds licences.

Lendlease HY21 Financial Results

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 HY21 refers to the half year period ended 31 December 2020 unless otherwise stated. All figures are in AUD unless otherwise stated.

AI assistant

LENDLEASE GROUP — Interim / Quarterly Report 2021

65243_rns_2021-02-21_57f1954a-cfca-4065-a803-fdff56af14ba.pdf

Lendlease Group 2021 Half Year Results Announcement, Presentation and Appendix

ENDS

Authorised for lodgement by the Lendlease Group Disclosure Committee

Operating profit recovers, strategic priorities progressed

For the half year ended 31 December 2020:

Progress on strategic priorities:

HY21 Result[4]

Strategic Progress

Financials

Outlook

ENDS

Investors:

Media:

Authorised for lodgement by the Lendlease Group Disclosure Committee

Fatalities

Key metrics / initiatives

HY21 key achievements

1 ranked office fund, seven funds ranked in the top 20

Securityholder returns

Performance

Progress on strategic priorities

Executing on strategy

Financial performance[1]

HY21 Cash flow movements

Underlying operating cash outflow ($735m):

Underlying investing cash outflow ($161m):

HY21 $b

Underlying operating cash flow[1 ] last five years

Underlying operating cash flow of $3.2b over five years:

Five year reconciliation of cashflow to EBITDA ($m)

Financial strength

Capital structure

Debt metrics

Funding and liquidity

Invested capital: Development and Investments

Group invested capital: By region

Core operating financial returns

Chicago

London

Milan

San Francisco

New York

Kuala Lumpur

Construction Funds Under backlog revenue ($b) Management ($b)

Development Pipeline ($b)

Perth

Melbourne

Brisbane

Sydney

Operational performance[1]

Development pipeline $110b

Production update

Pipeline[2] ($b)

Production[3] ($b)

Targeting an increase to $8b+ production p.a.

Outlook

Work in progress future indicator of production

Accelerating towards $8b+ production per annum

Work in progress[1] ($b)

Indicative conversion[2] H2 FY21 – FY23

Operational performance and outlook[1]

Backlog revenue ($b)

HY21[2] backlog by sector and client

Management earnings

Operational performance[1]

Outlook

Management EBITDA ($m)

Ownership earnings

Performance[1]

Outlook

Ownership EBITDA ($m)

Investments by sector ($b)

Sale of Engineering business complete

Segment performance

Positioned for long term growth

Income Statement (Statutory Result)

Reconciliation of Operating Profit[1]

LENDLEASE GROUP Interim / Quarterly Report 2021