LENDLEASE GROUP — Management Reports 2008

Aug 6, 2008

7 August 2008

The Manager Companies Section ASX Limited

The Manager Companies Section New Zealand Exchange Limited

Pages: Five (5) pages

Dear Sir

Stock Exchange Announcement

Management Discussion & Analysis of Financial Condition and Results of Operations – June 2007 Comparatives Reallocation

Lend Lease Corporation Limited will release its detailed results for the 2008 financial year on 21 August 2008.

To assist the market in its analysis of the figures for each line of business year-on-year, the attached document provides the Group’s 2007 full year results which have been recast to reflect our current lines of reporting.

Yours faithfully LEND LEASE CORPORATION LIMITED

==> picture [132 x 37] intentionally omitted <==

S J SHARPE Company Secretary

Lend Lease Corporation Limited Telephone +612 9236 6111 ABN 32 000 226 228 Facsimile +612 9252 2192 Level 4, 30 The Bond www.lendlease.com 30 Hickson Road Millers Point NSW 2000 Australia

1

Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) June 2007 Comparatives Reallocation

Footnote	Revenue Revised June 2007 Published June 2007 Reallocation A$m A$m A$m	EBITDA Revised June 2007 Published June 2007 A$m A$m	Reallocation A$m	Profit/(Loss) Before Tax1 Revised June 2007 Published June 2007 Reallocation A$m A$m A$m	Profit/(Loss) After Tax1 Revised June 2007 Published June 2007 Reallocation A$m A$m A$m
Retail Asia Pacific 3 Europe 4 Americas 5	23.5 23.0 0.5 108.1 25.6 82.5	(1.1) (1.3) 78.7 (1.0) 27.1		(1.3) (1.5) 0.2 77.0 (2.7) 79.7 27.1 27.1	(0.9) (1.0) 0.1 51.7 (2.0) 53.7 19.9 19.9
			0.2
			79.7
			27.1
Total Retail	131.6 48.6 83.0	104.7 (2.3)	107.0	102.8 (4.2) 107.0	70.7 (3.0) 73.7
Communities Asia Pacific Europe Americas 6	733.5 733.5 430.9 430.9 0.1 644.0 (643.9)	135.6 135.6 73.0 73.0 0.1 51.8		133.7 133.7 76.6 76.6 0.2 51.7 (51.5)	90.9 90.9 51.8 51.8 0.7 43.7 (43.0)
			(51.7)
Total Communities	1,164.5 1,808.4 (643.9)	208.7 260.4	(51.7)	210.5 262.0 (51.5)	143.4 186.4 (43.0)
Public Private Partnerships Europe 7 Americas 6	111.2 111.2 643.9 643.9	6.9 51.7		14.0 14.0 51.5 51.5	14.3 14.3 43.0 43.0
			6.9
			51.7
Total Public Private Partnerships	755.1 - 755.1	58.6 -	58.6	65.5 - 65.5	57.3 - 57.3
Investment Management Asia Pacific 3 Europe 4 Americas 5	77.9 78.4 (0.5) 8.6 91.1 (82.5) 1.5 1.5	38.6 38.8 154.6 234.3 10.4 37.5		43.7 43.9 (0.2) 154.6 234.3 (79.7) 10.4 37.5 (27.1)	29.7 29.8 (0.1) 153.4 207.1 (53.7) 6.0 25.9 (19.9)
			(0.2)
			(79.7)
			(27.1)
Total Investment Management	88.0 171.0 (83.0)	203.6 310.6	(107.0)	208.7 315.7 (107.0)	189.1 262.8 (73.7)
Project Management and Construction Asia Pacific Europe Americas PFIs 7	2,374.9 2,374.9 3,618.0 3,618.0 6,063.8 6,063.8 111.2 (111.2)	63.5 63.5 (103.0) (103.0) 89.7 89.7 6.9		61.5 61.5 (106.9) (106.9) 85.7 85.7 14.0 (14.0)	54.6 54.6 (77.2) (77.2) 65.9 65.9 14.3 (14.3)
			(6.9)
Total Project Management and Construction	12,056.7 12,167.9 (111.2)	50.2 57.1	(6.9)	40.3 54.3 (14.0)	43.3 57.6 (14.3)
Total operating businesses	14,195.9 14,195.9 -	625.8 625.8	-	627.8 627.8 -	503.8 503.8 -
Group Services Group Treasury Group Amortisation	8.3 8.3 77.7 77.7	(80.6) (80.6) 5.9 5.9		(83.8) (83.8) 4.4 4.4 (3.1) (3.1)	(60.0) (60.0) 5.1 5.1 (3.0) (3.0)
Total corporate	86.0 86.0 -	(74.7) (74.7)	-	(82.5) (82.5) -	(57.9) (57.9) -
Total operating Property investment revaluations2	14,281.9 14,281.9 -	551.1 551.1 82.7 82.7	-	545.3 545.3 - 82.7 82.7	445.9 445.9 - 51.6 51.6
Total statutory	14,281.9 14,281.9 -	633.8 633.8	-	628.0 628.0 -	497.5 497.5 -

Note: Footnote references included on the following page.

Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) June 2007 Comparatives Reallocation

• 1 Profit/(Loss) before tax is before deducting the amount attributable to minority interest. Profit after tax is after deducting the amount attributable to minority interests of A$2.7 million.

• 2 Represents the unrealised valuation increases on property investments that are consolidated or accounted for using the equity method in the financial statements.

• 3 Represents the reclassification of the results of Pakenham Place Shopping Centre, Paradiz Centre and Somerset Central from Investment Management to Retail.

• 4 Represents the reclassification of the results for Bluewater, Chelmsford Meadows Unit Trust, Warrington Retail Limited Partnership, Performance Retail Limited Partnership and the related overhead from Investment Management to Retail.

• 5 Represents the reclassification of the results for King of Prussia and the related overhead from Investment Management to Retail.

• 6 Represents the reclassification of the results for Actus from Communities to Public Private Partnerships.

• 7 Represents the reclassification of the results for UK PFI from Project Construction and Management to Public Private Partnerships.

Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) June 2007 Comparatives Reallocation

Investments Reported in Retail

Investments Reported in Retail
			Lend Lease Share
		Lend Lease	of Income1	Maket Value2
		Interest	June 2007	June 2007
	Region	%	A$m	A$m
Asia Pacific
Pakenham Place	Australia	25.0	0.3	16.2
Paradiz Centre	Asia	25.0	(0.1)	6.0
Somerset Central	Asia	25.0		40.4
Total Asia Pacific			0.2	62.6
Europe
Bluewater	UK	30.0	67.1	1,560.0
Performance Retail Limited Partnership	UK	33.3	5.3	104.8
Warrington Retail Limited Partnership	UK	50.0	2.1	118.1
Chelmsford Meadows Unit Trust	UK	75.0	10.2	174.7
Other/allocated overhead			(5.0)
Total Europe			79.7	1,957.6
Americas
King of Prussia	USA	50.0	28.2	483.8
Other/allocated overhead	USA		(1.1)
Total Americas			27.1	483.8
Total Retail			107.0	2,504.0

1 Represents Lend Lease’s share of income earned before tax from investments net of direct expenses and allocated overhead, excluding property investment revaluations.

• 2 Market value is based on independent valuations and is net of project-specific debt.

Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) June 2007 Comparatives Reallocation

Investments Reported in Investment Management

Investments Reported in Investment Management
Region	Lend Lease Interest % Lend Lease Share of Income1 June 2007 A$m Market Value2 June 2007 A$m
Asia Pacific APPF Australia	Various 23.4 440.7
REP Australia	10.0 1.2 6.2
Lend Lease Core Plus Fund Australia	10.1 0.7 24.3
Lend Lease Communities Fund 1 Australia	20.8 (0.5) 23.5
APIC II Asia	21.1 4.6 87.3
APIC Asia	17.9 17.7
ARIF Asia	10.1 13.0
Lend Lease International Distressed Debt Fund Asia	28.0 (5.0) 2.4
Other/allocated overhead	(1.4)
Total Asia Pacific	23.0 615.1
Europe Lend Lease Retail Partnership UK	3.95 3.1 82.1
Lend Lease Overgate Partnership UK	30.7 6.2 143.0
Lend Lease Global Properties, SICAF Europe	24.8 137.9 26.5
Cohen & Steers, SICAV Europe	0.5 47.6
Other/allocated overhead	(1.0)
Total Europe	146.7 299.2
Americas Other/allocated overhead USA	1.8 2.7
Total Americas	1.8 2.7
Total Investment Management	171.5 917.0
Total Retail and Investment Management Investments	278.5 3,421.0

1 Represents Lend Lease’s share of income earned before tax from investments net of direct expenses and allocated overhead, excluding property investment revaluations.

2 Market value is based on independent valuations and is net of project-specific debt.