LENDLEASE GROUP — Investor Presentation 2017

May 1, 2017

==> picture [524 x 77] intentionally omitted <==

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

02 May 2017
----- End of picture text -----

Lendlease Presentation at Macquarie Australia Conference

Attached is the presentation to be given by Lendlease Group Chief Financial Officer, Tarun Gupta at today’s Macquarie Australia Conference being held in Sydney.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Investors: Media: Justin McCarthy Natalie Campbell Mob: 0422 800 321 Mob: 0410 838 914

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

==> picture [108 x 77] intentionally omitted <==

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

Macquarie Australia Conference

Tarun Gupta, Group Chief Financial Officer Lendlease

2 May 2017

==> picture [173 x 34] intentionally omitted <==

2

MACQUARIE AUSTRALIA CONFERENCE 2017

Indigenous engagement and reconciliation

Lendlease’s vision for Reconciliation is one in which all our employees acknowledge and celebrate the proud heritage of Australia’s First Peoples and promote opportunities for career development, sustainable business growth and economic participation of Aboriginal and Torres Strait Islander Australians within our sector

==> picture [103 x 21] intentionally omitted <==

==> picture [146 x 89] intentionally omitted <==

3

MACQUARIE AUSTRALIA CONFERENCE 2017

Lendlease vision: to create the best places

Strategic framework

==> picture [10 x 7] intentionally omitted <==

==> picture [254 x 140] intentionally omitted <==

Business model

==> picture [10 x 7] intentionally omitted <==

==> picture [174 x 152] intentionally omitted <==

Competitive advantage

==> picture [10 x 7] intentionally omitted <==

==> picture [237 x 151] intentionally omitted <==

Pillars of value

==> picture [154 x 174] intentionally omitted <==

==> picture [10 x 7] intentionally omitted <==

==> picture [103 x 20] intentionally omitted <==

4

MACQUARIE AUSTRALIA CONFERENCE 2017

Globally diverse pipeline provides long term earnings visibility[1]

==> picture [623 x 75] intentionally omitted <==

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

DEVELOPMENT CONSTRUCTION INVESTMENTS
$49.0b $20.5b $24.7b $3.3b
Pipeline Backlog revenue FUM Investments
----- End of picture text -----

==> picture [103 x 20] intentionally omitted <==

1. All data as at 31 December 2016

5

MACQUARIE AUSTRALIA CONFERENCE 2017

Global trends influencing our strategy

Lendlease leadership

==> picture [54 x 44] intentionally omitted <==

Urbanisation

• $35.0b[1] Urbanisation pipeline

• 12 major urbanisation projects[2] across 8 Gateway cities

==> picture [96 x 40] intentionally omitted <==

Infrastructure

• A leading tier 1 Engineering business in Australia

• • $4b+ PPPs secured in last 5 years[3]

==> picture [65 x 38] intentionally omitted <==

Funds growth

• Lendlease accounted for ~10% of new equity raised globally for core wholesale mandates since 2009[4]

==> picture [79 x 55] intentionally omitted <==

Sustainability

• Recognised by GRESB as an international leader[5]

• Development pipeline targeting 98% green certification[6]

==> picture [91 x 38] intentionally omitted <==

Ageing population

• A market leader in retirement living sector in Australia

• Actively seeking to transfer skills offshore

==> picture [78 x 54] intentionally omitted <==

Technology

• A pioneer of new delivery technologies e.g. Cross Laminated Timber, pre-fab and modular; a leader in new safety initiatives

• As at 31 December 2016

• Urbanisation development projects with end value >$1b

• Cumulative data from FY12 – FY16

==> picture [103 x 20] intentionally omitted <==

1. Preqin Ltd; represents period 2009 to 2015

2. Global Real Estate Sustainability Benchmark (GRESB) 2016 survey; 5 funds achieved no.1 ranking in respective global or regional category 6. As at 30 June 2016

6

MACQUARIE AUSTRALIA CONFERENCE 2017

Portfolio Management Framework Delivering our strategy through financial discipline

Business model

• Integrated model synergies

==> picture [628 x 259] intentionally omitted <==

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

•
Target EBITDA mix:
35-45% Development
30-40% Investments
20-30% Construction
Capital allocation Target returns
2
• •
Focussed on Gateway Cities Group ROE 10-14%
• •
50-70% capital in Australia Development ROIC 9-12% [1]
• 20% max per International region 1 Maximising 3 • Investments ROIC 8-11% [1]
•
long term Construction EBITDA margin 3-4%
securityholder
value
5 4
Distribution policy Capital structure
----- End of picture text -----

• Payout 40-60% of earnings

• Capital management discipline

• Investment grade credit rating

• Optimised WACC

• Gearing[2] 10-15% (max 20%)

==> picture [103 x 20] intentionally omitted <==

1. Through-cycle target based on rolling 3-5 year timeline 2. Gearing definition: Net debt to total tangible assets less cash

7

MACQUARIE AUSTRALIA CONFERENCE 2017

Portfolio Management Framework

HY17 EBITDA mix

HY17 Invested capital

==> picture [52 x 12] intentionally omitted <==

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

$718.8m [1]
----- End of picture text -----

Target (35 – 45%) (20 – 30%) (30 – 40%) weighting

By segment $6.0b[2] (40 – 60%) (40 – 60%)

==> picture [201 x 164] intentionally omitted <==

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

By region
$6.4b [3]
(50 – 70%) (5 – 20%) (5 – 20%) (5 – 20%)
----- End of picture text -----

Returns

==> picture [13 x 7] intentionally omitted <==

Development – ROIC[4]

==> picture [198 x 26] intentionally omitted <==

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

Target 9 – 12% [5]
----- End of picture text -----

Investments – ROIC[4]

Construction – EBITDA margin

==> picture [410 x 45] intentionally omitted <==

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

Target 3 – 4%
Target 8 – 11% [5]
----- End of picture text -----

1. Operating EBITDA

2. Invested capital for Development and Investments. Total Lendlease invested capital as at 31 December 2016 was $6.8 billion

==> picture [103 x 20] intentionally omitted <==

1. Invested capital for Australia, Asia, Europe and the Americas. Total Lendlease invested capital as at 31 December 2016 was $6.8 billion ($0.4 billion, Corporate)

2. Return on Invested Capital definition: Operating Profit after Tax / Average Invested Capital (Annualised measure) 5. Through-cycle target based on rolling 3-5 year timeline

8

MACQUARIE AUSTRALIA CONFERENCE 2017

Portfolio Management Framework

Return on equity (ROE)[1]

Distributions

==> picture [11 x 7] intentionally omitted <==

==> picture [163 x 42] intentionally omitted <==

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

2 Target 10 – 14%
3
----- End of picture text -----

==> picture [27 x 8] intentionally omitted <==

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

cents
----- End of picture text -----

==> picture [664 x 206] intentionally omitted <==

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

Target 10 – 14%
3 Target 40 – 60%
2
Gearing [4]
----- End of picture text -----

==> picture [676 x 140] intentionally omitted <==

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

Target 10 – 15%
----- End of picture text -----

1. Full year ROE is calculated using the annual profit after tax divided by the arithmetic average of beginning, half and year end securityholders’ equity 2. FY14 includes Bluewater sale

==> picture [103 x 20] intentionally omitted <==

1. Half year ROE is calculated on an annualised basis, using the half year profit after tax divided by the arithmetic average of beginning and half year end securityholders’ equity

2. Net debt to total tangible assets less cash

9

MACQUARIE AUSTRALIA CONFERENCE 2017

Near term: Strong momentum in 2H17

• Apartments settlements and launches:

• Completions on track per half year results

• Park Place Residences at PLQ, Singapore phase one (215 apartments) sold out

• Tower One, Barangaroo: 23,800sqm[1] Heads of Terms progressing to Agreements for Lease

• Contractual close reached on Lifestyle Quarter at Tun Razak Exchange

• Entry into US Telco Infrastructure – via acquisition of telco tower portfolio

• Preferred bidder on Haringey urbanisation project, London, ~GBP2.0 billion development end value[2]

• Construction contracts awarded:

• Design & construction of Javits Convention Centre, New York, ~USD1.5 billion (50% JV)

• Google Headquarters, London

• Australian Engineering Business appointed recommended contractor on three projects ~$500m

• Major planning approvals :

• 1,500 apartments ‘Collins Wharf’ residential, Victoria Harbour, Melbourne

• Second commercial building (55,000 sqm), Melbourne Quarter

• Fourth commercial building (280,000 sqft), International Quarter, London

• Group Financing – SGD300 million bond issue completed

==> picture [103 x 20] intentionally omitted <==

1. Reported Half Year ended 31 December 2016

2. Subject to contractual close

10

MACQUARIE AUSTRALIA CONFERENCE 2017

Medium term: Re-weight earnings and capital allocation

PAT Australia vs Offshore (FY10-16)[1]

==> picture [5 x 6] intentionally omitted <==

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

2
----- End of picture text -----

HY17 Invested Capital (by region)[3]

Capital targets (per Portfolio Management Framework)

==> picture [37 x 13] intentionally omitted <==

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

$6.4b
----- End of picture text -----

==> picture [103 x 20] intentionally omitted <==

1. Proportion of Group PAT split between Australia and offshore, FY10-16 average 39% offshore or 33% excluding Bluewater 2. Offshore 20% ex Bluewater

2. Invested capital by region as a proportion of total invested capital, excluding $0.4 billion held at corporate.

11

MACQUARIE AUSTRALIA CONFERENCE 2017

Medium term: Increase earnings contribution from Engineering & Services

Medium term[4] outlook, per annum estimates

• Engineering & Services has strategic value

==> picture [10 x 7] intentionally omitted <==

==> picture [287 x 325] intentionally omitted <==

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

ADDRESSABLE Pathway to
MARKET
diversified
engineering
>$35b
portfolio
PROSPECTS
~70% of addressable
market
PURSUITS
~50% of prospects
WINS
Target hit rate 1:3
----- End of picture text -----

• The Australian infrastructure market is attractive

• The businesses are positioned for growth

Major Road and Rail Construction[1,2] ($b)

==> picture [10 x 7] intentionally omitted <==

==> picture [392 x 189] intentionally omitted <==

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

Value of work done, inflation adjusted [3]
12
10
Major Road
8
Major Rail
6
4
2
0
FY04 FY06 FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22 FY24 FY26
----- End of picture text -----

==> picture [103 x 20] intentionally omitted <==

1. Lendlease Group Research estimates 2. Includes Major Projects >$500m 3. FY14 prices 4. Represents 3 – 5 years

12

MACQUARIE AUSTRALIA CONFERENCE 2017

Medium term: Increase recurring earnings via Investments segment Funds under management $24.7b and co-investments of $1.5b

==> picture [658 x 257] intentionally omitted <==

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

35 $37.3b 40
$35.0b
$32.8b 35
30
$24.7b 30
25 $23.6b
$25.0b CAGR of
$23.1b $21.3b 16.0% 25
$21.3b
20
$16.3b 20
$15.0b
$15.7b
15
$12.3b
$10.9b 15
10
10
5
5
0 0
FY11 FY12 FY13 FY14 FY15 FY16 HY171H17
FUM Urbanisation Pipeline (Development End Value)
----- End of picture text -----

• Major urbanisation projects continue to fuel FUM growth:

• New sector opportunities:

• $3b[1] embedded future growth in FUM from urbanisation projects in delivery

• Residential multi family/Private Rental Scheme (PRS)

• A further $9.2b[1] (762,000sqm) of commercial development secured – potential source of additional FUM growth

• US Telco infrastructure

==> picture [103 x 20] intentionally omitted <==

1. As at 31 December 2016

13

MACQUARIE AUSTRALIA CONFERENCE 2017

Long term: Earnings visibility from strong pipeline across all segments

Development Pipeline of $49.0 billion[1]

Construction Backlog revenue of $20.5 billion[1]

Investments FUM of $24.7 billion[1]

==> picture [661 x 246] intentionally omitted <==

==> picture [103 x 20] intentionally omitted <==

1. As at 31 December 2016

14

MACQUARIE AUSTRALIA CONFERENCE 2017

Important notice

This presentation has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) ( Lendlease ) in good faith. Neither Lendlease, nor any of its controlled entities including 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 the presentation (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 presentation.

This presentation 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.

The Lendlease Group’s statutory results are prepared in accordance with International Financial Reporting Standards (IFRS) and are audited by KPMG. This presentation also includes certain non-IFRS measures in presenting the Lendlease Group’s results. Certain non-IFRS financial measures have not been subject to external audit or review.

A reference to HY17 refers to the half year period ended 31 December 2016 unless otherwise stated. All figures are in AUD unless otherwise stated.

==> picture [103 x 20] intentionally omitted <==