LENDLEASE GROUP — Management Reports 2011

Feb 2, 2011

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ASX Announcement

Management Discussion & Analysis of Financial Condition and Results of Operations and Portfolio Report – 2010 Comparatives Reallocation

3 February 2011

Lend Lease will release its results for the half year ended 31 December 2010 on 17 February 2011. In line with the move to a regional management structure from 1 July 2010 these results will be reported based on the Group’s four major geographic regions of Australia, Asia, Europe and the Americas.

To assist the market in reviewing the results for each line of business the attached document provides an analysis of the Group’s 2010 half year and full year results recast to reflect the Group’s current lines of reporting.

ENDS

For further information, please contact:

Investor Relations: Corporate Affairs: Sally Cameron Iwona Polski Group Executive - Investor Relations Media & External Communications Manager Tel:02 9236 6464 Tel: 02 9237 5034

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

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Level 4, 30 The Bond 30 Hickson Road Millers Point NSW 2000 Australia

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

Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Change in Reporting Structure – December 2009 Comparatives

Revenue	EBITDA	EBITDA	Profit/(Loss) Before Tax Profit/(Loss) After 2	Profit/(Loss) Before Tax Profit/(Loss) After 2	Profit/(Loss) Before Tax Profit/(Loss) After 2	Profit/(Loss) Before Tax Profit/(Loss) After 2	Tax 3
Footnote Published December 2009 Reallocation A$m A$m	Revised	Published December 2009 Reallocation A$m A$m	Revised	Published December 2009 Reallocation A$m A$m	Revised	Published December 2009 Reallocation A$m A$m	Revised
	December		December		December		December
	2009		2009		2009		2009
	A$m		A$m		A$m		A$m
Australia 1 Development 5,6 4 267.2 3.5 Project Management and Construction 1,387.3 Investment Management 7 22.5 11.1 Retail 6,7 14.6 (14.6) Public Private Partnerships 7.3		63.2 0.9 89.3 11.3 6.9 7.8 (7.8) (0.9)		63.2 0.9 88.1 10.7 6.7 7.6 (7.6) (1.0)		43.3 0.7 61.2 7.3 4.6 5.3 (5.3) (0.9)
	270.7		64.1		64.1		44.0
	1,387.3		89.3		88.1		61.2
	33.6		18.2		17.4		11.9
	7.3		(0.9)		(1.0)		(0.9)
Total Australia 1,698.9 -	1,698.9	170.7 -	170.7	168.6 -	168.6	116.2 -	116.2
Asia 1 Development 6 4 2.8 Project Management and Construction 238.8 Investment Management 7 3.3 6.3 Retail 6,7 9.1 (9.1)		0.6 15.3 6.0 2.9 3.5 (3.5)		0.6 15.2 6.0 2.9 3.5 (3.5)		0.5 12.5 5.9 2.6 3.1 (3.1)
	2.8		0.6		0.6		0.5
	238.8		15.3		15.2		12.5
	9.6		8.9		8.9		8.5
Total Asia 251.2 -	251.2	24.8 -	24.8	24.7 -	24.7	21.5 -	21.5
Europe Development 6 4 96.2 0.9 Project Management and Construction 1,243.2 ` Investment Management 7 2.1 32.8 Retail 6,7 33.7 (33.7) Public Private Partnerships 56.0		40.8 (4.7) 15.8 0.3 24.5 19.8 (19.8) 18.1		39.5 (5.5) 12.8 (0.5) 23.8 18.3 (18.3) 23.9		28.0 (3.5) 2.1 (1.4) 15.6 12.1 (12.1) 23.2
	97.1		36.1		34.0		24.5
	1,243.2		15.8		12.8		2.1
	34.9		24.8		23.3		14.2
	56.0		18.1		23.9		23.2
Total Europe 1,431.2 -	1,431.2	94.8 -	94.8	94.0 -	94.0	64.0 -	64.0
Americas Development 4 Project Management and Construction 1,659.7 Investment Management 7 Retail 7 Public Private Partnerships 526.0		0.3 (29.8) 0.9 14.1 14.1 (14.1) 37.9		0.2 (31.5) 0.9 14.1 14.1 (14.1) 38.7		0.1 (19.9) 0.6 11.0 11.0 (11.0) 27.2
			0.3		0.2		0.1
	1,659.7		(29.8)		(31.5)		(19.9)
			15.0		15.0		11.6
	526.0		37.9		38.7		27.2
Total Americas 2,185.7 -	2,185.7	23.4 -	23.4	22.4 -	22.4	19.0 -	19.0
Total Operating Businesses 5,567.0 -	5,567.0	313.7 -	313.7	309.7 -	309.7	220.7 -	220.7
Total Corporate 26.3 -	26.3	(29.9) -	(29.9)	(46.5) -	(46.5)	(32.8) -	(32.8)
Total Operating 5,593.3 -	5,593.3	283.8 -	283.8	263.2 -	263.2	187.9 -	187.9
PropertyInvestment Revaluations 8		26.1	26.1	26.1	26.1	17.0	17.0
Total Statutory 5,593.3 -	5,593.3	309.9 -	309.9	289.3 -	289.3	204.9 -	204.9

Note: Footnote references included on page 3.

Lend Lease Corporation

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Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Change in Reporting Structure – June 2010 Comparatives

Revenue	EBITDA	EBITDA	Profit/(Loss) Before Tax Profit/(Loss) After 2	Profit/(Loss) Before Tax Profit/(Loss) After 2	Profit/(Loss) Before Tax Profit/(Loss) After 2	Profit/(Loss) Before Tax Profit/(Loss) After 2	Tax 3
Footnote Published June 2010 Reallocation A$m A$m	Revised	Published June 2010 Reallocation A$m A$m	Revised	Published June 2010 Reallocation A$m A$m	Revised	Published June 2010 Reallocation A$m A$m	Revised
	June		June		June		June
	2010		2010		2010		2010
	A$m		A$m		A$m		A$m
Australia 1 Development 5,6 4 610.3 7.1 Project Management and Construction 3,033.1 Investment Management 7 48.1 24.4 Retail 6,7 31.5 (31.5) Public Private Partnerships 7.3		132.7 1.2 136.4 51.3 11.2 12.4 (12.4) (9.1)		121.1 1.2 133.7 50.2 11.0 12.2 (12.2) (9.1)		122.1 0.8 87.1 35.5 7.8 8.6 (8.6) (6.4)
	617.4		133.9		122.3		122.9
	3,033.1		136.4		133.7		87.1
	72.5		62.5		61.2		43.3
	7.3		(9.1)		(9.1)		(6.4)
Total Australia 3,730.3 -	3,730.3	323.7 -	323.7	308.1 -	308.1	246.9 -	246.9
Asia 1 Development 6 4 2.7 Project Management and Construction 403.4 Investment Management 7 8.6 9.2 Retail 6,7 11.9 (11.9)		(0.4) 25.2 10.7 5.5 5.1 (5.1)		(0.4) 25.0 10.7 5.5 5.1 (5.1)		(0.4) 18.3 10.2 5.1 4.7 (4.7)
	2.7		(0.4)		(0.4)		(0.4)
	403.4		25.2		25.0		18.3
	17.8		16.2		16.2		15.3
Total Asia 423.9 -	423.9	41.0 -	41.0	40.8 -	40.8	33.2 -	33.2
Europe Development 6 4 123.6 0.9 Project Management and Construction 2,167.2 Investment Management 7 16.4 63.2 Retail 6,7 64.1 (64.1) Public Private Partnerships 126.7		47.9 (4.0) 50.4 13.3 58.3 54.3 (54.3) 1.0		46.2 (4.7) 44.6 12.6 57.6 52.9 (52.9) 13.9		42.5 (1.0) 25.8 4.7 36.4 35.4 (35.4) 10.2
	124.5		43.9		41.5		41.5
	2,167.2		50.4		44.6		25.8
	79.6		71.6		70.2		41.1
	126.7		1.0		13.9		10.2
Total Europe 2,498.0 -	2,498.0	166.9 -	166.9	170.2 -	170.2	118.6 -	118.6
Americas Development 4 Project Management and Construction 2,927.1 Investment Management 7 0.1 Retail 7 Public Private Partnerships 935.0		0.2 (66.7) 2.9 27.2 27.2 (27.2) 89.9		0.1 (71.0) 3.0 27.2 27.2 (27.2) 92.8		0.1 (45.0) 2.7 17.6 17.6 (17.6) 55.3
			0.2		0.1		0.1
	2,927.1		(66.7)		(71.0)		(45.0)
	0.1		30.1		30.2		20.3
	935.0		89.9		92.8		55.3
Total Americas 3,862.2 -	3,862.2	53.5 -	53.5	52.1 -	52.1	30.7 -	30.7
Total Operating Businesses 10,514.4 -	10,514.4	585.1 -	585.1	571.2 -	571.2	429.4 -	429.4
Total Corporate 55.6 -	55.6	(102.6) -	(102.6)	(154.1) -	(154.1)	(105.8) -	(105.8)
Total Operating 10,570.0 -	10,570.0	482.5 -	482.5	417.1 -	417.1	323.6 -	323.6
PropertyInvestment Revaluations 8		33.7	33.7	33.7	33.7	22.0	22.0
Total Statutory 10,570.0 -	10,570.0	516.2 -	516.2	450.8 -	450.8	345.6 -	345.6

Note: Footnote references included on page 3.

Lend Lease Corporation

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Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Change in Reporting Structure – Footnote References

1. The consolidated results of the Asia Pacific region have been reclassified to the Australia and Asia regional segments as follows:

	Revenue	Revenue	EBITDA	EBITDA	Profit/(Loss)	Before Tax 2	Profit/(Loss)	After Tax 3
	Published	Published	Published	Published	Published	Published	Published	Published
	December	June	December	June	December	June	December	June
	2009	2010	2009	2010	2009	2010	2009	2010
	A$m	A$m	A$m	A$m	A$m	A$m	A$m	A$m
Asia Pacific
Development 4	267.2	610.3	63.2	132.7	63.2	121.1	43.3	122.1
Project Management and Construction	1,626.1	3,436.5	104.6	161.6	103.3	158.7	73.7	105.4
Investment Management	25.8	56.7	17.3	62.0	16.7	60.9	13.2	45.7
Retail	23.7	43.4	11.3	17.5	11.1	17.3	8.4	13.3
Public Private Partnerships	7.3	7.3	(0.9)	(9.1)	(1.0)	(9.1)	(0.9)	(6.4)
Total Asia Pacific	1,950.1	4,154.2	195.5	364.7	193.3	348.9	137.7	280.1
Australia
Development 4	267.2	610.3	63.2	132.7	63.2	121.1	43.3	122.1
Project Management and Construction	1,387.3	3,033.1	89.3	136.4	88.1	133.7	61.2	87.1
Investment Management	22.5	48.1	11.3	51.3	10.7	50.2	7.3	35.5
Retail	14.6	31.5	7.8	12.4	7.6	12.2	5.3	8.6
Public Private Partnerships	7.3	7.3	(0.9)	(9.1)	(1.0)	(9.1)	(0.9)	(6.4)
Total Australia	1,698.9	3,730.3	170.7	323.7	168.6	308.1	116.2	246.9
Asia
Project Management and Construction	238.8	403.4	15.3	25.2	15.2	25.0	12.5	18.3
Investment Management	3.3	8.6	6.0	10.7	6.0	10.7	5.9	10.2
Retail	9.1	11.9	3.5	5.1	3.5	5.1	3.1	4.7
Total Asia	251.2	423.9	24.8	41.0	24.7	40.8	21.5	33.2
Total Asia Pacific	1,950.1	4,154.2	195.5	364.7	193.3	348.9	137.7	280.1

1. Profit/(loss) before tax is before adjusting for the amount attributable to minority interests.

2. Profit/(loss) after tax is after adjusting for the profit after tax attributable to minority interests of A$1.6 million at December 2009 and A$2.6 million at June 2010.

3. The Communities business is now referred to as the Development business.

4. In Australia, the Development business includes the results of the Senior Living business.

5. The results of retail development projects have been reclassified from the Retail business to the Development business.

6. The results of the remaining Retail business have been reclassified to the Investment Management business.

7. Represents the unrealised valuation increases/(decreases) on property investments that are consolidated or accounted for using the equity method in the financial statements.

Lend Lease Corporation

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