lendlease group 2020 full year results announcement ... · lendlease group 2020 full year results...

17 August 2020

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

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

Lendlease Group 2020 Full Year Results Announcement, Presentationand Appendix

Lendlease Group today announced its results for the year ended 30 June 2020. Attached is theFY20 Results Announcement, Presentation and Appendix.

A summary of Lendlease's Major Urbanisation Projects can be found on the Lendlease website, orby clicking on the link here.

ENDS

FOR FURTHER INFORMATION, PLEASE CONTACT:

Investors: Media:Justin McCarthy Stephen EllawayMob: +61 422 800 321 Mob: +61 417 851 287

Authorised for lodgement by the Lendlease Group Disclosure Committee

https://www.lendlease.com/au/-/media/llcom/investor-relations/presentations/2020/lendlease_fy20-major-urbanisation-projects_final.pdf

22 August 2018

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 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

19 August 2019

17 August 2020

Strategic initiatives progressed despite COVID-19 impacts

For the full year ended 30 June 20201:

• Statutory Loss after Tax of $310 million

• Full year distributions of 33.3 cents per stapled security:

o Interim distribution 30 cents;

o Final distribution 3.3 cents from Trust, no dividend from Corporation

Core business:

• Profit after Tax of $96 million, Return on Equity of 1.5 per cent2

• $212 million after tax loss in H2FY20, significantly impacted by COVID-19

• Development pipeline of $113 billion, up 48 per cent

Strategic progress:

• Secured two major urbanisation projects, estimated end development value of $37 billion

• Three3 new investment partnerships across c.$7 billion of development value

• Completed development of Paya Lebar Quarter, Singapore – $3.3 billion of FUM

• Listed the Lendlease Global Commercial REIT in Singapore

• Launched new sustainability targets including net zero carbon by 2025 and absolute zero carbon by 2040

Non Core business:

• Loss after Tax of $406 million, including $368 million in exit costs

• Sale of the Engineering business anticipated to be completed shortly, subject to satisfaction of the final conditions

FY20 Result

Group Chief Executive Officer and Managing Director, Steve McCann, said Lendlease experienced

a disappointing financial result in FY20 as the Group brought to account costs for the exit of the

Engineering business, while the Core business was impacted by COVID-19 in the second half.

“The Group responded swiftly to the onset of COVID-19 with the health and safety of our people

and customers paramount, along with measures to strengthen our financial position,” said Mr

McCann.

A range of mitigating actions were implemented including cost reductions and a review of project

expenditure. In addition, the balance sheet was strengthened significantly through issuing new

1. Comparative period, the year ended 30 June 2019. 2. Return on Equity is calculated using the Profit after Tax divided by the arithmetic average of beginning, half and year end securityholders’ equity. 3 One partnership was formed post balance date.

22 August 2018


19 August 2019

17 August 2020

equity and arranging additional debt facilities to enable the Group to manage through a potential

sustained downturn and to take advantage of development and investment opportunities as they

emerge.

“Notwithstanding the challenging environment, the Group advanced its strategic agenda in FY20.

Significant progress was made on growing and converting the development pipeline, including

securing additional major urbanisation projects, achieving important planning milestones and

creating new investment partnerships to support projects moving into delivery. The Group has

made good progress in finalising the sale of the Engineering business.”

Core business

Following a solid first half, a significant deterioration in operating conditions as a result of the

impacts of COVID-19 led to a loss in the second half of the year.

Delays were experienced in converting development opportunities across our urbanisation pipeline

and the Communities business experienced weak trading conditions.

In Construction, the impact was greater in our international regions, particularly in cities where

mandated shutdowns were implemented. This included lower productivity, projects being put on

hold and delays in the commencement or securing of new projects.

The Group’s investment portfolio was impacted by declining real estate values as a result of

deteriorating market conditions.

While the financial performance was curtailed, substantial growth in the development pipeline

along with the establishment of new investment partnerships and the extension of existing

partnerships provide the foundations for future growth.

“Our ability to deliver transformational urban precincts with a focus on financial, environmental and

social outcomes is being recognised globally. Continued origination success during the year

resulted in the development pipeline more than doubling over the last five years to above $100

billion,” said Mr McCann.

The Group added two new major urbanisation projects to its portfolio – Thamesmead Waterfront in

London and a partnership with Google in the San Francisco Bay Area. These residential led

projects have a combined estimated development end value of approximately $37 billion.

The retail and residential components of Singapore’s newest lifestyle precinct completed in the

period. This marks the culmination of the four-year development of Paya Lebar Quarter with the

precinct now contributing $3.3 billion in funds and assets under management.

22 August 2018


19 August 2019

17 August 2020

A new partnership was formed with PSP Investments, one of Canada’s largest pension funds to

develop the $4 billion Milano Santa Giulia project. The 58,000 sqm Victoria Cross over station

development in Sydney will be delivered in partnership with the Australian Prime Property Fund

Commercial.

Post year end, the Group established an investment partnership with Mitsubishi Estate to deliver

the first residential tower at One Sydney Harbour, Barangaroo South, which we expect to

contribute approximately $100 million to after tax profit in FY21.

Strong presales have been achieved at TRX Residences in Kuala Lumpur and One Sydney

Harbour, Barangaroo South. There are more than 1,600 apartments for rent in delivery, with four

additional buildings entering delivery across projects in London and Chicago.

“The ongoing conversion of our pipeline provides access to development opportunities and high

quality assets for our investment partners. This integrated approach, along with our placemaking

skills, provides a point of difference we believe few can match,” Mr McCann said.

The design and delivery capabilities of the Construction segment are critical to the success of

integrated projects. In addition, the business is well placed to secure Government sponsored

projects as part of potential stimulus measures across a range of sectors.

Today we announce the launch of our new ambitious environmental and social sustainability

targets. Lendlease is committed to being a 1.5ºC aligned company, with market leading carbon

targets of net zero carbon scope 1 and 2 by 2025 and absolute zero carbon, which extends to our

supply chain, by 2040. In addition, through our interaction with the communities we are part of, we

aim to create $250 million of social value by 2025.

Non-core business

The sale of the Engineering business is anticipated to complete shortly, subject to the satisfaction

of the final conditions. The sale price is $160 million, payable in instalments in FY21 including

completion adjustments.

The Group will retain three projects. The completion of NorthConnex is anticipated in the coming

months and Kingsford Smith Drive is scheduled to complete by the end of CY20. As previously

advised, the Cross Yarra Partnership consortium for the Melbourne Metro Tunnel Project is

continuing to work with the Victorian Government on a confidential basis to resolve issues in

relation to the scope and costs on the project.

22 August 2018


19 August 2019

17 August 2020

Lendlease has previously disclosed a cost estimate to exit the Engineering and Services

businesses of $450 - $550 million4 on a pre-tax basis. Lendlease now expects these costs to be

approximately $550 million pre tax, with $525 million pre tax ($368 million after tax) accounted for

in FY205.

The sale process for the Services business has been paused as a result of current market

conditions. While the business has been performing well, it is non core and is expected to be

divested in future periods.

Financials

The Group’s Statutory Loss after Tax of $310 million for the year ended 30 June 2020 included

Engineering exit costs of $368 million after tax, along with $19m of goodwill impairment in

anticipation of the completion of the sale of Engineering, and COVID-19 related impacts on the

Core business.

The Core business generated profit after tax of $96 million for the full year. A solid first half with net

profit after tax of $308 million was largely offset by the sharp deterioration in operating conditions

following the onset of the pandemic, resulting in a loss after tax of $212 million in the second half.

A range of measures were undertaken to strengthen the financial position of the Group. $1.2 billion

of equity was raised through an Institutional Placement and Share Purchase Plan and $1.3 billion

of additional debt facilities were arranged. In addition, overhead and employee costs were reduced

and project expenditure was reviewed.

The Group entered the new financial year in a strong financial position with gearing of 5.7 per cent6

and $5.86 billion of liquidity.

Group Chief Financial Officer, Tarun Gupta said: “We remain focused on setting ourselves up for

the future to deliver our growing pipeline of urbanisation projects and pursue investment

opportunities. A robust balance sheet and available liquidity are paramount for this investment

phase.”

Cash generation was strong with underlying operating cash flow of $762 million. This included

apartment settlements across our development projects and the cash realisation of profit

recognised on development projects in prior periods. In addition, PLLACes7 on Barangaroo

apartment pre sales generated cash of $588 million. Adjusting for the $525 million of Engineering

exit costs, cash conversion of underlying operating cash flow to EBITDA for the last five years, was

102 per cent.

4 This cost estimate included implementation and selling costs, indemnities included in any sale agreements and potential costs to cover concluding projects retained by the Group. 5 $15m accounted for in FY19 with a further $10m expected in FY21. 6 FY20 includes $451m of cash and cash equivalents which have been classified as Disposal Group assets held for sale. 7 Presold Lendlease Apartment Cash flows.

22 August 2018


19 August 2019

17 August 2020

The completion of the Engineering sale will result in a cash flow impact comprising a transfer of the

working capital cash balance to the buyer, less sale proceeds in FY21. As at 30 June 2020 the

working capital balance was approximately $450 million. The cash outflow from the exit costs of

$525 million accounted for in FY20 is expected to be incurred over the period FY21 – FY25.

Outlook

Since the onset of COVID-19 our priorities have been to keep our people safe and protect our

balance sheet. While the duration of the impacts of the pandemic is uncertain, near term effects

from COVID-19 are continuing and we expect current conditions to suppress first half earnings.

The Group entered FY21 in a strong financial position and is well positioned to execute delivery of

the global development pipeline and take advantage of new investment opportunities as market

conditions improve.

The Group’s ability to partner with public and private sector clients to secure long dated projects

provides substantial earnings visibility over the medium to long term.

“Our core business is at an exciting point with a development pipeline of $113 billion and a growing

number of major urbanisation projects in our international gateway cities across the US and Europe

in particular,” Mr McCann said.

Construction backlog revenue for the core business is $14 billion. Beyond the current backlog,

there is approximately $8 billion of work for which the Group is in a preferred position, across both

external and integrated projects.

“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 are well placed to double

our current $36 billion funds under management as this pipeline is delivered,” Mr McCann said.

The Investments segment is in a solid position to continue to deliver recurring earnings derived

from the $4 billion of investments, $36 billion in funds under management and $29 billion of assets

under management.

Further information regarding Lendlease’s results is set out in the Group’s financial results

presentation for the full year ended 30 June 2020 and is available on www.lendlease.com.

ENDS

22 August 2018


19 August 2019

17 August 2020

FOR FURTHER INFORMATION, PLEASE CONTACT:

Investors: Media:

Justin McCarthy Stephen Ellaway

Mob: +61 422 800 321 Mob: +61 417 851 287

2020 Key Dates for Investors

Securities quoted ex-distribution on the Australian Securities Exchange 21 August

Distribution record date 24 August

Strategy Market Briefing 31 August

Distribution payable 15 September

Annual General Meetings 20 November

Authorised for lodgement by the Lendlease Group Disclosure Committee

DR

AF

T –

SU

BJ

EC

T T

O V

ER

IFIC

AT

ION

2020Full YearResults

Singapore: Paya Lebar Quarter

17 August 2020

Lendlease FY20 Financial Results 2

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.

Acknowledgement

of Country


Group

Performance Steve McCann

Group Chief Executive

Officer and Managing

Director

Chicago: Cooper at Southbank

End to end capabilities

across all aspects of real

estate – from concept

planning, to design and

delivery, through to

funding and investment

management – generate

superior economic, social

and environmental

outcomes.

Our approach



• Significant deterioration in operating conditions in the second half as a result of the pandemic

• Financial impact to Core business:

− Solid H1 FY20 with a net profit after tax of $308m

− H2 FY20 loss after tax of $212m

• Health and safety paramount:

− Range of measures to protect our people, customers and the communities in which we operate

− Early introduction of travel bans and workplace changes to prevent the spread of the virus

− Initiatives across the commercial assets, retirement villages and residential communities we manage

• Actions to mitigate the impact on the Group:

− Overhead and employee cost reductions

− Review of project expenditure

− Balance sheet strengthened by $1.2b equity raising and $1.3b in additional debt facilities

• Despite a challenging year, substantial progress made on the Group’s strategic agenda

• The strengthening of the balance sheet positions the Group to:

− Manage through a potential sustained downturn

− Accelerate delivery of development pipeline and take advantage of new investment opportunities

2020 significantly impacted by onset of COVID-19

Swift response following the onset of the pandemic

Well placed to navigate ongoing uncertainty

COVID-19


Value creation: non financial focus areas

1. Calculated on a rolling 12 month basis. 2. Calculated to provide a rate of instances per 1,000,000 hours worked. 3. Comparative period the year ended 30 June 2019. 4. A Critical Incident is an event that caused, or had the potential to cause,

death or permanent disability. This is an indicator unique to Lendlease. 5. Global Real Estate Sustainability Benchmark (2019).

Health and Safety

Health and Safety is our number one

priority. We remain committed to the

health and safety of our people, our

subcontractors, and all of those who

interact with a Lendlease place.

Our People

Our people are the greatest

contributors to our success and enable

us to fulfil our vision to create the best

places.

Our Customers

Designing and delivering innovative,

customer driven solutions allows us to

win the projects we want to win and

ultimately deliver the best places.

Sustainability

We pride ourselves on reaching

industry firsts – not because they’re

milestones, it’s a signal we’re pushing

ourselves for better outcomes for

people and the planet.

Safety

• Despite a significant improvement

in performance across our safety

metrics, it is with much sadness we

report a fatality in FY20

• Improved metrics following further

enhancements to safety standards:

− Record low Group Lost Time

Injury Frequency Rate1,2 1.5,

down from 1.83

− Operations without a Critical

Incident4 91%, up from 90%3

Developing talent at all levels

• 39 senior leaders participated in our

Urbanisation Project Director and

Construction Director programs – a

further 47 senior leaders have

completed the programs

• 26.9% of leadership positions held

by women, up from 26.1%3

• 404 graduates accepted into our

global graduate program

Customer Focus

• Attracted significant new investment

partners to the Group

• #1 ranked infrastructure contractor

for Australian Department of

Defence

• #1 ranked multi-family residential

contractor in the US – 20th

consecutive year

• Customer satisfaction and loyalty

ratings positive across our three

segments following a survey of

25,000 customers

Leadership

• 1.5°C aligned company targeting:

− Net zero carbon scope 1 & 2 by

2025

− Absolute zero carbon by 2040

• Target $250m social value created

by 2025

• Barangaroo South: Australia’s first

carbon neutral precinct

• GRESB5 leadership

− #1 ranked fund globally

− Four funds in global top 10


FY20 result

1. Comparative period the year ended

30 June 2019.

2. Return on Equity is calculated using

the Profit after Tax divided by the

arithmetic average of beginning, half

and year end securityholders’

equity.

3. Net debt to total tangible assets, less

cash.

4. FY20 includes $451m of cash and

cash equivalents which have been

classified as Disposal Group assets

held for sale.

• Group Statutory Loss after Tax of $310m:

− Core Profit after Tax of $96m, earnings per stapled security of 15.9 cents, Return on Equity of 1.5%2

− Non core Loss after Tax of $406m, including $368m after tax in exit costs

• Full year distributions of 33.3 cents per security

− Interim distribution of 30 cents per security

− Final distribution of 3.3 cents per security from Trust earnings, no dividend from Corporation

• Financial performance of the Core business significantly impacted by COVID-19:

− Delay in conversion of opportunities across urbanisation projects

− Mandatory site shutdowns, lower productivity and delays in new work in Construction

− Valuation declines in the Group’s c.$4b investment portfolio

• Mitigating actions implemented in response to the pandemic:

− Balance sheet strengthened by equity raising and additional debt facilities

− Initiatives to reduce overheads and review project expenditure

• Despite a challenging year, substantial progress made on strategic agenda:

− Development pipeline up 48% to $113b with two additional major urbanisation projects secured

− New investment partnerships formed

• Strong financial position: gearing of 5.7%3,4, and liquidity of $5.8b4 providing capacity to:

− Accelerate development production activity as economy recovers

− Take advantage of new investment opportunities

Securityholder returns1

Performance


Progress on exit of Non coresegment


30 June 2019.

2. Previously disclosed range of $450m

- $550m pre tax.

3. $15m accounted for in FY19 with a

further $10m expected in FY21.

4. Final working capital amount and

associated cash to be determined at

completion.

Sale of Engineering business to Acciona

• Sale of Engineering business to Acciona anticipated to complete shortly, subject to satisfaction of the final conditions:

− Third party consents being secured

− Sale price of $160m, payable in instalments in FY21 including completion adjustments

Update on retained contracts and Services business

• Three retained engineering projects:

− NorthConnex: completion anticipated in the coming months

− Kingsford Smith Drive: completion expected by end of CY20

− Melbourne Metro Tunnel Project:

o Consortium working with Government on a confidential basis to resolve issues in relation to scope and costs

• Services business:

− Sale paused until market conditions normalise

− Underlying performance maintained with new work secured of $1.4b, up from $1.0b1

− c.$10m pre tax of costs incurred in FY20 relating to the wind down of the Energy and Technology unit

Financial impact

• Costs to exit Engineering and Services business expected to be approximately $550m2 pre tax

− $525m pre tax exit costs accounted for in FY203 - cash outflow expected to be incurred over FY21-25

• Goodwill impairment of $19m related to Engineering sale

• On completion of the sale, a working capital cash balance will transfer to the buyer. As at 30 June 2020 the balance was c.$450m4


Strategic initiatives progressed, Development pipeline $113b

1. Total estimated development end value. 2. Secured post balance date. 3. Comparative period the year ended 30 June 2019. 4. Artist’s impression (image subject to change and further design development and planning approval). 5. Victoria

Cross over station development.

• Investment partner initiatives:

− New investment partnerships extending to $7b1 in development value:

o Milano Santa Giulia: entire precinct

o Victoria Cross over station development, Sydney

o Barangaroo South: One Sydney Harbour Tower 12

− Progress on existing investment partnerships:

o Elephant Park: further two residential for rent buildings in delivery

o Lakeshore East and Southbank: additional three residential buildings in delivery

o Completed Paya Lebar Quarter, Singapore: $3.3b FUM

− Launched Lendlease Global Commercial REIT in Singapore

− New c.$2b multi sector investment mandate secured in Australia3

• Development pipeline $113b up from $76.1b3

• c.$37b of urbanisation projects secured:

− Thamesmead Waterfront, London: $15.1b1

− San Francisco Bay Area project: $21.8b1

Executing on our strategy

Milan: Milano Santa Giulia4

London: Elephant Park4

Sydney: Victoria Cross4,5

Chicago: Lakeshore East4


Tarun Gupta

Group Chief Financial

Officer

Financial

Performance

Sydney: Sydney Place

Artist’s impression


$m FY19 FY20 Change

Core

Development 793 322 (59%) • PLQ completion; Victoria Cross over station development and MSG Development JVs; apartment settlements

Construction 211 101 (52%) • EBITDA margin 1.3%

Investments 489 140 (71%) • Modest growth in base fees from higher average FUM; PLQ performance fee

Operating EBITDA 1,493 563 (62%)

Corporate costs1 (165) (158) 4%

Group EBITDA 1,328 405 (70%)

Depreciation and amortisation (94) (160) (70%)

EBIT 1,234 245 (80%)

Net finance costs (125) (153) (22%)

PBT 1,109 92 (92%) • Depreciation and amortisation and Net finance costs increased due to implementation of AASB16 Leases4

Income tax (expense)/benefit (305) 4 na2

PAT 804 96 (88%)

Non core

EBITDA (461) (495) (7%) • Operating result of $30m (including $19m goodwill impairment), $525m of exit costs

PAT (337) (406) (20%)

Total

PAT 467 (310) na2

Weighted avg. securities3 (#m) 588 603 3%

Earnings per Stapled Security3 (cents) 79.4 (51.4) na2

1. Corporate costs of $158m comprise Group services costs of $129m and Group Treasury costs of $29m. 2. Figures are non meaningful. 3. FY19 Total Earnings per Security and Weighted avg Securities have been updated to reflect the share issue

in FY20 (previously reported as 82.4 cents and 567 #(m) respectively). 4. The net impact to the Income statement on adoption of AASB16 is an $11m pre tax increase in expense in FY20.

Financial performance

H1FY20 H2FY20

Development 272 50 Delays in transactions across urbanisation projects

Construction 101 - Site shutdowns, lower productivity, project delays

Investments 255 (115) Total investment devaluations of $211m in H2

Operating EBITDA 628 (65)

H2 performance impacted by COVID-19


1,269

860

1,547

1,228 4,9044,279

Operatingcash flow

Interest andtax paid

Netinvestment

intodevelopment

inventory

Adjustmentfrom investing

cash flow

Underlyingoperatingcash flow

EBITDA

1,111

4511,290

762 (184)(810)

504 1,562

FY19 closingcash

Underlyingoperating cash

flow


Underlyinginvesting cash

flow

Net financingand other

adjustments

FY20 closingcash

Cash flow movements

Underlying operating cash flow

Cash flow

1. Presold Lendlease Apartment Cash

flows.

2. $525m added back to EBITDA

3. Reconciliation on appendix slides

12 and 13.

4. Includes the impact of foreign

exchange movements on opening

cash.

5. $451m of cash and cash

equivalents has been classified as

Disposal Group assets held for sale

at FY20.

6. Underlying operating cash flow

relative to EBITDA.

7. Movement in development

properties inventory, less

movement in deferred land

payments.

8. Reallocation reflects cash proceeds

from sell down of development

entities and realised gains on sale

of assets not reflected in operating

cash flow.

Strong underlying operating cash flows:

• Development receipts, including cash realisation from profit

recognised in previous periods

• $588m inflow from PLLACes1 transaction

• Cash conversion of 175% after adjusting for Engineering exit costs2

Underlying investing cash flow:

• Development expenditure across a range of projects and partnerships

• Investment in Lendlease Global Commercial REIT $0.3b

Financing cash flows:

• Raised $1.2b in equity via Institutional Placement and SPP

Underlying operating cash flow of $4.9b from FY16 to FY20:

• Statutory operating cash flow of $1,269m:

− $0.9b has been paid in interest and tax

− $1.5b of the Group’s operating cash flow has been reinvested

into development inventories

− $1.2b cash realisation from the sell down of deconsolidated

development entities and gains on sale of assets

• Cash conversion of 115% FY16 – FY20:

− Conversion 102% adjusted for exit costs in FY202

− Longer term average anticipated to be below 100% given

revaluations in Investments segment included in EBITDA

FY16 – FY20 ($m)

FY20 ($m)

3 3 4

5

7

8

FY20 cash conversion 175%

adj for exit costs

6

FY16 – FY20 cash conversion 115%6

Disposal Group cash


Financial strength Invested capital: Development

Invested capital: Investments

Financial position

1. Target range 10 – 20%.

2. FY20 includes $451m of cash and

cash equivalents which have been


held for sale.

3. 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 pre tax exit

costs (FY20: $525m).

4. The sum of the underlying

investment positions does not tie to

invested capital due to other non-

investment related items in the

segment.


30 June 2019.

Capital structure

• Gearing 5.7%1,2, down from 9.9% at FY19; net debt $0.8b2,

down from $1.4b at FY19:

− Strong underlying operating cash flow offset by underlying

investing cash outflow

− c.$1.2b equity raising

• Invested capital up $0.4b to $8.2b

• Investment grade credit ratings (no change in period):

− Moody’s: Baa3 negative outlook

− Fitch: BBB- stable

• Discontinued operations:

− $0.8b assets, $0.7b liabilities held for sale

Debt metrics

• Interest cover3 of 2.8 times

• Average cost of debt 3.4%, maturity 4.2 years

Funding and liquidity

• Total liquidity of $5.8b2 provides capacity to increase

development and investment activity

− $1.6b2 cash, $4.2b undrawn facilities

• Balanced debt maturity profile

$4.8bDevelopment

$3.7b4

Investments

$1.4bRetirement

$2.0bCo-investments

$0.6bOther

investments

17Communities

projects

21Major

urbanisation

projects

Other

Unchanged4

Up $0.1b5


Portfolio Management FrameworkEBITDA mix Invested capital

1. Core operating EBITDA. 2. Total invested capital at 30 June 2020 was $8.2b. Development and Investments totalled $8.5b, Construction and Non core ($0.4b) and Corporate $0.1b. 3. Return on Invested Capital (ROIC) is calculated using the

Profit after Tax divided by the arithmetic average of beginning, half and year end invested capital. 4. Through-cycle target based on rolling three to five year timeline. 5. Core business only.

Returns

Development – ROIC3,4 Investments – ROIC3,4Construction – EBITDA margin5

By segment By region

57%

18%

25%

$563m¹

Development(40 - 50%)

Construction(10 - 20%)

Investments(35 - 45%)

56%

44%$8.5b²

Development(40 - 60%)

Investments(40 - 60%)

42%

17%

22%

19%

$8.1b²

Australia(50 - 70%)

Asia(5 - 20%)

Europe(5 - 20%)

Americas(5 - 20%)

11.6%

4.7%

Target 10 - 13%

FY19 FY20

2.2%1.3%

Target 2 - 3%

FY19 FY20

10.8%

2.8%

Target 8 - 11%

FY19 FY20


Development segment ($m) Construction segment ($m) Investments segment ($m)

Average ROIC: FY16 – FY20 Average EBITDA margin: FY16 – FY20 Average ROIC: FY16 – FY20

Core financial returns

.

• Average Return on Equity FY16 – FY20:

10.4%Target2

10-13%

2.4%Target

2-3%

10.2%Target2

8-11%

10.8%1

Target

10 – 14%

1. Group average ROE FY16 – FY20 7.9%, including Non core segment. 2. Through-cycle target based on rolling three to five year timeline. 3. Includes Engineering and Services businesses.

500 552673

793

322

11.7%13.7% 13.4%

11.6%

4.7%

FY16 FY17 FY18 FY19 FY20

1H EBITDA 2H EBITDA ROIC

288 271296

211

101

2.4% 2.6%3.1%

2.2%1.3%


1H EBITDA 2H EBITDA EBITDA Margin

3

458 495

669

489

140

11.2% 11.7%

15.5%

10.8%

2.8%


1H EBITDA 2H EBITDA ROIC


Operational

Update Steve McCann



Director

London: International Quarter London



Growth in platform across target gateway cities

Development

Pipeline ($b)

Construction

backlog revenue ($b)

Funds Under

Management ($b) Investments ($b)

49 49

7176

113

FY16 FY20

15 16 15 1614

FY16 FY20

2426

30

35 36

FY16 FY20

3.03.3 3.4

3.74.0

FY16 FY20


Apartment settlements and completions

Apartment pipeline

Performance

Development

1. Post balance date.

2. Major buildings only.

• Significant COVID-19 impact

− H1 EBITDA $272m and H2 $50m

Apartments

• 2,236 residential settlements and completions:

− 870 residential for rent apartment completions in Boston and Chicago

• Strong apartment presales at two projects:

− Sydney: Barangaroo South, One Sydney Harbour:

o 317 for sale apartments, c.75% presold

o Investment partnership with Mitsubishi Estate1

− Kuala Lumpur: TRX Residences: 443 apartments, >50% presold

• UK Residential Investment Partnership progressing next two buildings at

Elephant Park: 241 apartments for rent

• Two residential led major projects secured:

− Thamesmead Waterfront, London: more than 11,500 units

− San Francisco Bay Area project: more than 15,000 units

Outlook

• Total pipeline of approximately 56,000 units across 12 gateway cities:

− c.19,000 residential for rent

• Apartments for sale:

− 1,418 apartment presales in delivery2

• Apartments for rent:

− 1,624 units in delivery

− Potential for c.4,000 units to convert FY21 - FY25

Target 1,000 –

2,000 units p.a.

1,6231,366

452 870

1,203

2,533

1,314

2,0752,236


For sale For rent

66%

34%

For sale

For rent

56,225

units


Commercial building commencements

Indicative conversion timing2

Commercial

Development

1. Total estimated development end

value.

2. Subject to planning approvals and

market conditions.

Performance

• Partnership formed to develop the Milano Santa Giulia project:

− $41 billion major urbanisation project

− First two office buildings forward sold

o Tenant secured for >85% of 46,000 sqm NLA

• Investment partnership formed to deliver Victoria Cross over station

development, Sydney:

− $1.2b major urbanisation project, 58,000 sqm office tower

• Major commercial developments completed, 66,000 sqm, $1.9b:

− Retail mall, Paya Lebar Quarter, Singapore: 29,000 sqm

− Building 3, International Quarter London: 26,000 sqm

− Daramu House, Barangaroo South, Sydney: 11,000 sqm

• Major commercial buildings in delivery $5.8b1

Outlook

• Potential conversion FY21 – FY232:

− 26 buildings, c.493,000 sqm

• Near term opportunities:

− Melbourne Quarter:

o Planning approved, tenant and capital partner marketing

− International Quarter London:

o Planning approved

− 30 Van Ness, San Francisco:

o Planning approved

By sqm ‘000 Target 2 – 3 commencements p.a.

Project # Buildings / sqm ‘000 FY21 FY22 FY23

Melbourne Quarter 1 73

The Exchange TRX, KL 2 47

International Quarter London 1 34

30 Van Ness, San Francisco 1 25

Brisbane Showgrounds 1 32

Waterbank, Perth 1 11

Milan Innovation District 6 100

Silvertown Quays, London 2 24

Milano Santa Giulia 8 103

Southbank, Chicago 1 21

Silvertown Quays, London 2 23

Total 26 493

249288

114 104

85 4

03


1H 2H No. of buildings


Communities settlementsCommunities

DevelopmentPerformance and outlook

Communities

• 1,898 lots settled, impacted by lower demand, tighter credit markets and

COVID-19

• 1,347 lot sales, down 14% on FY19

• Presales of 1,725 lots, $0.5b

• Settlement target of 3,000 – 4,000 lots unlikely to be met in FY21

• Signs of recovery in Australia:

− Enquiry levels have returned to pre-COVID-19 levels with Government

stimulus measures supporting increased demand

• Pipeline of approximately 47,000 lots

Telecommunications Infrastructure

• 125 towers completed

Target 3,000 – 4,000 lots p.a.

3,4023,060

3,912

2,523

1,898


1H 2H


Backlog revenue ($b)

FY203 backlog by sector and client

Performance and outlook1

Construction


30 June 2019.

2. Includes internal revenue of ($0.9b).

3. Includes all Construction projects

with backlog greater than $100m,

which represents 81% ($11.2b) of

secured backlog.

• Global EBITDA margin 1.3%, down from 2.2%

• Revenue of $7.6b, down 21%

• Significant COVID-19 impact

− Solid H1 with EBITDA of $101m

− Break even result for EBITDA in H2

• Impact greater in international regions

− Site shutdowns

− Lower productivity

− Projects on hold

− Delays in commencement of new projects

• New work secured $7.5b, down from $9.9b:

− Australian business only marginally lower at $4.3b – mix of commercial,

social infrastructure and defence

− Lower activity in the Americas – high rise residential market softening

• Backlog revenue of $14b:

− Projects, apart from a small number, are operational

− Revised health and safety measures remain in place with some continuing

impacts on productivity

− Strong franchises with external clients in key target sector and markets

− Urbanisation pipeline to provide significant opportunities for future backlog

and value add to the integrated model

• Preferred on c.$8b of work across external and integrated projects

26%

25%23%

11%

8%6%

1%

Commercial

Defence

Residential

Social Infrastructure

Transport

Hotel/Entertainment

Other

24%

32%

44%

Lendlease

Corporate

Government

15.6

7.5 (7.6)

(1.6)13.9

FY19 New worksecured

Revenuerealised

FX andOther

FY202


Operating EBITDA ($m)

Investments platform ($b)

Operating earnings

Investments


30 June 2019.

2. Secured future FUM from funds or

mandates with development

projects.


• EBITDA of $198m, up from $144m

− Modest growth in base fees in line with higher average funds under

management

− Significant performance fee post completion of Paya Lebar Quarter,

Singapore

• Funds Under Management of $36b:

− 2% growth:

o Retail: Paya Lebar Quarter, Singapore

o Residential FUM $1.7b, 70% increase

o Lendlease Global Commercial REIT

o $1.4b impact from devaluations

− >$50b of institutional grade investment product in c.$100b urbanisation

pipeline:

o Secured future FUM of $3.3b2 representing twelve buildings in

delivery

o Opportunity to double FUM as urbanisation pipeline is delivered

− c.$2b multi sector mandate secured to manage TCorp portfolio in Australia

from 1 July 2020

• Assets Under Management of $29b:

− Recurring asset and property management fees

− Commercial assets $15.1b

− Residential assets $14.2b

FUM AUM

$29b$36b 54%36%

5%

3% 2%

Office Retail Resi

11%

41%

48%

Industrial Other

108 116133

144

198


1H 2H


Ownership EBITDA ($m)

Investments by product ($b)

Ownership earnings

Investments


30 June 2019.

2. The underlying investment position

does not tie to invested capital due

to other non-investment related

items in the segment.


• EBITDA loss of $58m, down from $345m:

− Significant reduction in valuations due to the impacts of COVID-19

o $188m in devaluations across the Group’s investment portfolio

($23m revaluations in H1, $211m devaluations in H2)

• Invested Capital $3.7b

Co-investments:

− $2.0b of investments:

o Asset devaluations of c.5% across the portfolio

− Lower investment income from prior year

o Divestments across Australian portfolio

o Impact of trading performance on assets in COVID-19 environment

Retirement Living:

− $1.4b investment, 12,858 units across 72 villages

− Devaluations offset resilient operating performance

o c.6% valuation decline from portfolio pricing adjustment and

development carrying values

o Resales up 3.8% across the portfolio, modest price declines

o Development activity delayed, reflecting softer market conditions

Other:

− Income derived from:

o Invested equity in US military housing

o Telecommunications tower portfolio

350379

536

345

(58)


1H 2H

2


Outlook

Steve McCann



Director

Boston: Clippership Wharf


Outlook• Group well placed to navigate the uncertainty of COVID-19:

− Near term impact of pandemic expected to continue

− Strong financial position

− Capacity to accelerate delivery of global development pipeline and take advantage of new investment opportunities

• Total development pipeline of $113b:

− Urbanisation capabilities increasingly being recognised as world leading

− 21 major urbanisation projects across nine gateway cities

• Construction backlog revenue of $14b:

− Design and delivery capability for integrated model

− External backlog diversified by client, sector and geography

• Investments segment with $4b of investments, $36b in FUM and $29 in AUM:

− Funding and investment capability for integrated model

− Strong capital partner relationships, fund and asset management platforms

• Non core segment:

− Engineering sale agreement executed – anticipated completion shortly, subject to satisfaction of the final conditions

− Sale process for Services paused

• Focus on leveraging the Group’s competitive advantage via the urbanisation and investment platforms:

− Unwavering commitment to health and safety

− Disciplined approach to origination and managing individual project and property cycle risk

Positioned for long term growth

Sydney: Daramu House, Barangaroo South

Questions

2020Full YearResults Appendix

Singapore: Paya Lebar Quarter

17 August 2020

Overview

Sydney: One Sydney Harbour, Barangaroo South

Artist's impression

Image subject to change and further design development and planning approval

1. From external clients.

Development

Development of inner city mixed use

developments, apartments,

communities, retirement, retail,

commercial assets and social and

economic infrastructure


• Development margin

• Development management fees

• Origination fees

Construction

Project management, design and

construction services, predominantly

in the defence, mixed use,

commercial and residential sectors


• Construction margin1

• Project management and

construction management fees

Investments

A leading investment management

platform and the Group’s ownership

interests in co-investments,

Retirement and other investments


• Fund and asset management fees

• Yield and capital growth on

ownership interests

Our business model is how we generate earnings

The model is integrated when more than one segment is engaged on a single project


Ouroperatingsegments

London: International Quarter London


Image subject to change and further design

development and planning approval


Global presence, local knowledge1

1. Map references major urbanisation projects only. 2. Formerly The Timberyard, Deptford. 3. Remaining estimated development end value.

Our urbanisation led strategy focuses on 17 global

gateway cities where we believe our local expertise

delivers the most value.

Development

pipeline3

Construction

backlog revenue

Funds under

management

Investments Assets under

management

$113 billion $14 billion $36 billion $4 billion $29 billion

San Francisco

• San Francisco Bay Area project

• 30 Van Ness

Chicago

• Lakeshore East

• Southbank

London

• Thamesmead Waterfront

• Euston Station

• Silvertown Quays

• International Quarter London

• Elephant Park

• High Road West

• Deptford Landings2

Sydney

• Barangaroo South

• Sydney Place

• Victoria Cross over station development

Milan

• Milano Santa Giulia

• Milan Innovation District

Kuala Lumpur

• The Exchange TRX

Perth

• Waterbank

Melbourne

• Melbourne Quarter

• Victoria Harbour

Brisbane

• Brisbane Showgrounds

LosAngeles

New YorkBoston Rome

Beijing

Shanghai

Tokyo

Singapore

We measure our success by the value we create in these five focus areas.

Health and Safety

Everyone has the right to go

home safely. We remain

committed to the health and

safety of our people, our

subcontractors, and all of

those who interact with a

Lendlease place.

Financial

A strong balance sheet and

access to third party capital

enables us to fund the

execution of our pipeline and

deliver quality earnings for

our securityholders.

Our Customers

Our customers love the

places we create when we

partner effectively,

collaborate and innovate.

Only through these actions

can we respond to a

changing world.

Our People

Our people are the greatest

contributors to our success

and enable us to fulfil our

vision to create the best

places.

Sustainability

Sustainability is core to our

planning and clear in our

outcomes. We have a

proud history of giving

emphasis to

environmental, social and

economic impacts.


Valuecreation

Sydney: Barangaroo South


Financial

1. The Group is currently reviewing the framework in

conjunction with the strategy review. The revised

framework will be provided in FY21.

2. Per region.

3. Through-cycle target based on rolling three to five

year timeline.

4. Net debt to total tangible assets, less cash.

Portfolio Management

Framework1

Maximising long term

securityholder value

1. Capital allocation

Focused on gateway cities

Australia 50-70%

International regions 5-20%2

2. Business model

Integrated model synergies

Target EBITDA mix:

Development 40-50%

Construction 10-20%

Investments 35-45%

3. Target returns

Group ROE 10-14%

Development ROIC 10-13%3

Construction EBITDA margin 2-3%

Investments ROIC 8-11%3

4. Capital structure

Investment grade credit rating

Optimised Weighted

Average Cost of Capital

Target gearing4 10-20%

5. Distribution policy

Payout of earnings 40-60%

Capital management discipline

We focus on Return on Equity

and Earnings per Security

as measures of return for

securityholders.

The Portfolio Management Framework1

provides the structure and financial

discipline across the operating segments

of Development, Construction and

Investments.

When these segments combine to leverage

the competitive advantage of our integrated

model, value will be enhanced for our

securityholders, partners and the

community.

A strong balance sheet and accessto third

party capital enables Lendlease to fund the

execution of its pipeline.

San Francisco: 30 Van Ness




Sustainability

1. Lendlease managed Australian Prime Property Fund Commercial ranked first out of 964 respondents in the 2019 Global Real Estate Sustainability Benchmark.

Provides voluntary, consistent climate-related

financial risk disclosures for use by companies

in providing information to investors, lenders,

insurers and other stakeholders

Lendlease leadership

• In FY20 we progressed our disclosure under

the recommendations of the TCFD

Independent provider of research-driven insights

and tools for institutional investors


• Lendlease continues to achieve highest AAA

ESG rating, placing in the top 7% of MSCI ACWI

Index constituents for Real Estate Development

and Diversified Activities

UN Global Compact

Voluntary initiative based on CEO

commitments to implement

universal sustainability principles

and to take steps to support UN goals


• Signatory since April 2014

In 1983, Lendlease Founder, Dick

Dusseldorp, and the then Managing

Director, Stuart Hornery, set up the

Lendlease Foundation with a long term

vision to create a function that would

nurture and support its social

responsibility both internally to employees

as well as to the community.

Current Lendlease Foundation program

and engagement opportunities include:

• Springboard

• Great Barrier Reef Foundation

• Australian Business Community

Network

• MATES In Construction

• Red Cross

• OzHarvest

• Chicago Cook Workforce Partnership

• Loneliness Lab

®

Sustainability

Reconciliation Action Plan (RAP)

Framework for organisations to realise their vision for

reconciliation. RAPs are endorsed and monitored

by Reconciliation Australia, an independent, national,

not-for-profit organisation promoting reconciliation by

building relationships, respect and trust between the

wider Australian community and First Nations

Peoples

Lendlease’s Elevate RAP outlines our

commitment to recognition of Country and

support for the self-determination of First

Nations Peoples through the planning,

delivery and operation of our projects and

assets

World’s leading proponent of

responsible investment working to

understand the investment

implications of environmental, social

and governance (ESG) factors


• Signatory since FY08

• A+ rated for both Strategy &

Governance and Property modules

(2019)

Investor driven organisation assessing the

sustainability performance of real asset sector

portfolios and assets


• Beating 964 participants, APPF Commercial rated

worlds best by GRESB in 20191. It is the fifth time

in the past six years that APPF Commercial has

attained the prestigious number one global ranking

• Four Lendlease managed funds achieved top 10

GRESB global ranking

Group

London: Deptford Landings (formerly The Timberyard Deptford)




Income Statement

1. FY19 balances have been restated for

discontinued operations during the

year.

2. FY19 Earnings per Stapled Security

has been updated to reflect the share

issue in FY20 (was 98.2 cents

continuing operations and 82.4 cents

total).

$m FY191,2 FY20

Revenue from contracts with customers 14,889 11,671

Other revenue 152 163

Cost of sales (13,929) (11,361)

Gross profit 1,112 473

Share of profit of equity accounted investments 338 (13)

Other income 293 352

Other expenses (863) (1,195)

Results from operating activities from continuing operations 880 (383)

Finance revenue 17 12

Finance costs (142) (165)

Net finance costs (125) (153)

Profit/(Loss) before tax from continuing operations 755 (536)

Income tax (expense)/benefit (198) 194

Profit/(Loss) after tax from continuing operations 557 (342)

(Loss)/Profit after tax from discontinued operations (90) 32

Profit/(Loss) after tax 467 (310)

Profit/(Loss) after tax attributable to:

Members of Lendlease Corporation Limited 313 (342)

Unitholders of Lendlease Trust 154 32

Profit/(Loss) after tax attributable to securityholders 467 (310)

External non controlling interests - -

Profit/(Loss) after tax 467 (310)

Earnings per Stapled Security from continuing operations cents 94.7 (56.7)

Earnings per Stapled Security cents 79.4 (51.4)


Statement of Financial Position

$m FY19 FY20

Current Assets

Cash and cash equivalents 1,290 1,111

Loans and receivables 2,050 1,667

Inventories 2,238 2,256

Other financial assets 97 16

Current tax assets 11 27

Other assets 70 59

Disposal Group assets held for sale - 841

Total current assets 5,756 5,977

Non Current Assets

Loans and receivables 688 744

Inventories 3,345 3,113

Equity accounted investments 3,452 3,671

Investment properties 501 658

Other financial assets 1,103 1,076

Deferred tax assets 101 141

Property, plant and equipment 548 693

Intangible assets 1,457 1,457

Defined benefit plan asset 140 156

Other assets 87 62

Total non current assets 11,422 11,771

Total assets 17,178 17,748

$m FY19 FY20

Current Liabilities

Trade and other payables 5,724 4,496

Provisions 332 343

Borrowings and financing arrangements 225 134

Other financial liabilities 6 10

Disposal Group liabilities held for sale - 670

Total current liabilities 6,287 5,653

Non Current Liabilities

Trade and other payables 1,401 2,405

Provisions 45 62

Borrowings and financing arrangements 2,490 2,261

Other financial liabilities 1 1

Deferred tax liabilities 597 434

Total non current liabilities 4,534 5,163

Total liabilities 10,821 10,816

Net assets 6,357 6,932

Equity

Issued capital 1,300 1,889

Treasury securities (68) (68)

Reserves 105 65

Retained earnings 3,815 3,265

Total equity attributable to members of

Lendlease Corporation Limited 5,152 5,151Total equity attributable to unitholders of

Lendlease Trust 1,182 1,756

Total equity attributable to securityholders 6,334 6,907

External non controlling interests 23 25

Total equity 6,357 6,932


Statement of Cash Flows1

1. Balances include cash flows relating to

both continuing and discontinued

operations.

2. FY19 comparatives are $nil as Interest

in relation to lease liabilities and

Repayment of lease liabilities were not

recognised under AASB117 Leases.

Operating lease expenses were

recorded as Cash payments in the

course of operations.

3. $451m million of cash and cash

equivalents has been classified as

Disposal Group assets held for sale at

FY20.

$m FY19 FY20

Cash Flows from Operating Activities

Cash receipts in the course of operations 17,026 13,488

Cash payments in the course of operations (16,902) (13,313)

Interest received 13 16

Interest paid in relation to other corporations (152) (164)

Interest in relation to lease liabilities2 - (25)

Dividends/distributions received 105 146

Income tax paid in respect of operations (30) (11)

Net cash provided by operating activities 60 137

Cash Flows from Investing Activities

Sale/redemption of investments 571 448

Acquisition of investments (378) (709)

Acquisition of/capital expenditure on investment properties (53) (57)

Net loan drawdowns from associates and joint ventures (22) (9)

Disposal of consolidated entities (net of cash disposed and transaction costs) 266 136

Disposal of property, plant and equipment 14 11

Acquisition of property, plant and equipment (165) (112)

Acquisition of intangible assets (66) (77)

Net cash provided by/(used in) investing activities 167 (369)

Cash Flows from Financing Activities

Net proceeds from share issue - 1,193

Proceeds from borrowings 4,640 4,658

Repayment of borrowings (4,347) (4,970)

Dividends/distributions paid (258) (327)

Payments for on market buyback of stapled securities (174) -

Payments for on market buyback of stapled securities - Dividend Reinvestment Plan (11) -

Increase in capital of non controlling interest 22 2

Repayment of lease liabilities2 - (61)

Net cash (used in)/provided by financing activities (128) 495

Other Cash Flow Items

Effect of foreign exchange rate movements on cash and cash equivalents 14 9

Net increase in cash and cash equivalents 113 272

Cash and cash equivalents at beginning of financial year 1,177 1,290

Cash and cash equivalents at end of financial year3 1,290 1,562


Underlying operating cash flow1



operations.

2. Cash conversion is nonmeaningful in

FY20 due to the Group statutory loss.

3. Refer to Financial and Operational

Metrics data file for full reconciliation.

4. Movement in development properties

inventory, less movement in deferred

land payments.

5. 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 (FY16 – FY20) ($m)

Reconciliation3 (FY16 – FY20) ($m)

• Underlying operating cash flow has been included to

provide a more accurate cash comparator against

Group EBITDA

• This represents 115% of Group EBITDA over the period

• If the $525m Engineering exit costs are excluded, cash

conversion in FY20 is 175% and since FY16 would have

been 102%

Total conversion against EBITDA of 115%

Cash

Conversion157% 104% 73% 36% n/a2

Group

EBITDA

Underlying

operating

cash flow

• Lendlease has delivered underlying operating cash

flow of $4.9b from FY16 to FY20

• $0.9b has been paid in interest and tax

• Since FY16, $1.5b (32%) of the Group’s underlying

operating cash flow has been reinvested into development

inventories4

• $1.2b 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

115% conversion

against EBITDA

1,659

1,254913

316

762

1,0551,202 1,245

867

(90)


1,269

860

1,547

1,228 4,9044,279

Operatingcash flow


Netinvestment

intodevelopment

inventory

Adjustmentfrom investing

cash flow

Underlyingoperatingcash flow

EBITDA


FY20 underlying operating cash flow1



operations.

Overview

Summary of adjustments

$m Statutory Adjustments Underlying

Cash Flows from Operating Activities

Cash receipts in the course of operations 13,488 - 13,488

Cash payments in the course of operations (13,313) 1741 (13,139)

Dividends/distributions received 146 - 146

Deconsolidation of development entities - 1362 136

Realised gains on sale of assets - 1313 131

Interest received 16 (16) -

Interest paid in relation to other corporations (164) 164 -

Interest in relation to lease liabilities (25) 25 -

Income tax paid in respect of operations (11) 11 -

Net cash provided by operating activities 137 625 762

Cash Flows from Investing Activities

Sale/redemption of investments 448 (131)3 317

Acquisition of investments (709) - (709)

Acquisition of/capital expenditure on investment

properties(57) - (57)

Net loan drawdowns from associates and joint

ventures(9) - (9)

Disposal of consolidated entities (net of cash

disposed and transaction costs)136 (136)2 -

Disposal of property, plant and equipment 11 - 11

Acquisition of property, plant and equipment (112) - (112)

Acquisition of intangible assets (77) - (77)

Net increase in development inventory - (174)1 (174)

Net cash used in investing activities (369) (441) (810)

1. Net increase in development inventory

During the period there was an increase in

development inventories, net of deferred

land payments, which has been reclassified

as an investing activity

2. Cash proceeds from sell down of

development entities

The proceeds on sale of deconsolidated

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 revaluations included in EBITDA.

Accordingly, gains on disposal (including

crystallised revaluations) are reclassified as

an operating activity

• 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

In FY20 Lendlease delivered underlying operating cash flow of $762m


Segment financial metrics

1. Return on Invested Capital (ROIC) is

calculated using the annual Profit after

Tax divided by the arithmetic average

of beginning, half and year end

invested capital.

2. FY16 inputs include the Engineering

and Services businesses.

Operating Profit after Tax ($m) Operating EBITDA ($m)

ROIC1 (Development and Investments), EBITDA margin (Construction)

Invested capital(Development and Investments) ($b)

554

368

141

233

10442

Development Investments Construction

FY19 FY20793

489

211

322

140101

Development Investments Construction

FY19 FY20

4.8

3.6

4.8

3.7

Development Investments

FY19 FY20

11.6%10.8%

2.2%

4.7%

2.8%

1.3%

10.4%5 year average

10.2%5 year average

2.4%5 year average2

Development ROIC Investments ROIC ConstructionEBITDA margin

FY19 FY20


Segment financial metrics

1. Comprises Group Services and Group

Treasury costs. FY20 EBITDA: Group

Services ($129m) and Group Treasury

($29m). FY19 EBITDA: Group Services

($140m) and Group Treasury ($25m).

By segment

Revenue ($m) EBITDA ($m) Profit after Tax ($m) Invested capital ($b)

FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20

Development 3,355 2,344 793 322 554 233 4.8 4.8

Investments 348 390 489 140 368 104 3.6 3.7

Construction 9,680 7,627 211 101 141 42

Corporate1 31 44 (165) (158) (259) (283)

Total Core Segments 13,414 10,405 1,328 405 804 96

Non Core 3,141 2,884 (461) (495) (337) (406)

Total Group 16,555 13,289 867 (90) 467 (310)


Revenue / EBITDA by segment

Operating EBITDA by segment ($m)

Operating EBITDA by region ($m)

$m Revenue EBITDA

FY19 FY20 FY19 FY20

Development

Australia 2,712 1,198 556 174

Asia 18 13 121 34

Europe 544 969 37 116

Americas 81 164 79 (2)

Total Development 3,355 2,344 793 322

Construction

Australia 4,052 3,217 126 97

Asia 401 255 (1) (11)

Europe 941 782 40 (9)

Americas 4,286 3,373 46 24

Core Construction 9,680 7,627 211 101

Non Core 3,141 2,884 (461) (495)

Total Construction 12,821 10,511 (250) (394)

Investments

Australia 210 172 330 35

Asia 63 134 50 67

Europe 13 16 9 (10)

Americas 62 68 100 48

Total Investments 348 390 489 140

Total Operating

Australia 6,974 4,587 1,012 306

Asia 482 402 170 90

Europe 1,498 1,767 86 97

Americas 4,429 3,605 225 70

Core Operating 13,383 10,361 1,493 563

Non Core 3,141 2,884 (461) (495)

793

211

489

(461)

322

101 140(495)

Development Construction Investments Non Core

FY19 FY20

1,012

17086

225

(461)

306

90 97 70(495)

Australia Asia Europe Americas Non Core

FY19 FY20


Revenue /EBITDA by segment, local currency

1. Major currency in region.

Operating EBITDA, local currency (m)Asia

SGDm¹ Revenue EBITDA

FY19 FY20 FY19 FY20

Development 17 12 117 32

Construction 390 237 (1) (10)

Investments 61 125 49 62

Total Operating 468 374 165 84

Europe

£m1 Revenue EBITDA

FY19 FY20 FY19 FY20

Development 299 515 20 61

Construction 518 414 22 (5)

Investments 7 8 5 (5)

Total Operating 824 937 47 51

Americas

US$m Revenue EBITDA

FY19 FY20 FY19 FY20

Development 58 110 56 (1)

Construction 3,043 2,259 33 16

Investments 44 46 71 32

Total Operating 3,145 2,415 160 47

117

(1)

49

165

32(10)

6284

Development Construction Investments Total Operating

FY19 FY20

5633

71

160

(1)16

3247


FY19 FY20

20 22

5

4761

(5) (5)

51


FY19 FY20


Exchange rates

1. Average foreign exchange rate for the

full year 2019.

2. Average foreign exchange rate for the

full year 2020.

3. Spot foreign exchange rate at 30 June

2019.

4. Spot foreign exchange rate at 30 June

2020.

Income Statement

Local Foreign FY191 FY202

AUD USD 0.71 0.67

AUD GBP 0.55 0.53

AUD EUR 0.63 0.61

AUD SGD 0.97 0.93

Statement of Financial Position

Local Foreign FY193 FY204

AUD USD 0.70 0.69

AUD GBP 0.55 0.56

AUD EUR 0.62 0.61

AUD SGD 0.95 0.96

FX sensitivity

USD GBP EUR SGD

FY20 Core Business Profit

+10% average FX rate (strengthening AUD) 0.74 0.58 0.67 1.02

Change as % of Core Business Profit % (5.21%) - (3.13%) (4.17%)

-10% average FX rate (weakening AUD) 0.60 0.48 0.55 0.84

Change as % of Core Business Profit % 4.17% - 4.17% 6.25%

FY20 Statement of Financial Position

+10% spot FX rate (strengthening AUD) 0.76 0.62 0.67 1.06

Change as % of Group Net Assets % (1.38%) (1.50%) (0.40%) (0.85%)

-10% spot FX rate (weakening AUD) 0.62 0.50 0.55 0.86

Change as % of Group Net Assets % 1.69% 1.83% 0.48% 1.04%


FY20 regional EBITDA to PAT reconciliation

1. Depreciation and amortisation.

$m EBITDA Net interest D&A1 PBT Tax PAT

Australia

Development 174 (3) (7) 164 (46) 118

Construction 97 - (8) 89 (27) 62

Investments 35 - (5) 30 - 30

Total Australia 306 (3) (20) 283 (73) 210

Asia

Development 34 - (2) 32 (14) 18

Construction (11) (1) (3) (15) 1 (14)

Investments 67 - (2) 65 (3) 62

Total Asia 90 (1) (7) 82 (16) 66

Europe

Development 116 4 (8) 112 (19) 93

Construction (9) (1) (3) (13) 2 (11)

Investments (10) - (1) (11) 2 (9)

Total Europe 97 3 (12) 88 (15) 73

Americas

Development (2) - (6) (8) 12 4

Construction 24 (4) (14) 6 (1) 5

Investments 48 (6) (9) 33 (12) 21

Total Americas 70 (10) (29) 31 (1) 30

Corporate

Group Services (129) (15) (92) (236) 69 (167)

Group Treasury (29) (127) - (156) 40 (116)

Total Corporate (158) (142) (92) (392) 109 (283)

Total Core Business 405 (153) (160) 92 4 96

Non Core (495) 5 (84) (574) 168 (406)

Total Group (90) (148) (244) (482) 172 (310)


Debt metrics

1. FY20 includes $451m million of cash

and cash equivalents which have been


held for sale.

2. 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

(FY19: $500m; FY20: $525m).

FY19 FY20

Net debt1 $m 1,425 833

Borrowings to total equity plus borrowings % 29.9 25.7

Net debt to total tangible assets, less cash1 % 9.9 5.7

Interest cover2 times 8.8 2.8

Average cost of debt % 4.0 3.4

Average debt maturity years 4.8 4.2

Average debt mix fixed: floating ratio 52:48 56:44

Undrawn facilities $m 2,631 4,226


Debt facilities and maturity profile

1. Values are shown at amortised cost.

2. Values are shown at gross facility

value.

Debt facilities1 ($m)

Debt maturity profile2 ($m)

134

535

- - -

725

29

575

31179

536 535

1,800

800 714

960

179

575

31179

Euro CPprogramme

UK BondIssue

Syndicatedcash advance

facility

Syndicatedloan facility

ClubRevolving

Credit Facility

Asia LoanFacility

CNY871million bank

facility

US$ Reg. Snotes

S$ Reg. Snotes

A$ mediumterm notes

Drawn Facility

536 536

900

900

800

714

960179 580

313 80

FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29

Euro CP programme UK Bond Issue Syndicated cash advance facility Syndicated loan facility

Club Revolving Credit Facility Asia Loan Facility CNY871 million bank facility US$ Reg. S notes

S$ Reg. S notes A$ medium term notes Undrawn


Key dates for investors

Date

FY20 results released to market / final distribution declared 17 August 2020

Securities quoted ex distribution on the Australian Securities Exchange 21 August 2020

Final distribution record date 24 August 2020

Strategy Market Briefing 31 August 2020

Final distribution payable 15 September 2020

Annual General Meetings 20 November 2020

Development

Segment

San Francisco Bay Area project

Artist's impression



Urbanisation

21 major projects in

9 gateway cities

Communities

17 projects

Telco

Infrastructure

Infrastructure

Development

Military

Housing

Apartments Commercial Communities US Telco Towers

Australian

Infrastructure

Development

US Military

Housing

Portfolio

Target2

1,000 - 2,000

settlements

per annum

Target2

2 - 3 buildings

commenced

per annum

Target

3,000 - 4,000

settlements

per annum

Development

marginOrigination fees Development fees

56,225 units

$69.0b1

2,415,000 sqm

$29.8b1

47,372 lots

$13.9b1 354 tower pipelinePeriodic bids for

PPP projects

Additional scope

on existing

projects and

periodic bids for

new projects

Earnings drivers - Development

1. Remaining estimated development end value. Total includes $0.3b of Infrastructure pipeline. 2. Targets under review.

ROIC target 10-13%; Invested capital $4.8b; Pipeline1 $113.0b

Bu

sin

ess

Re

turn

s

an

d m

etr

ics

Pip

elin

e


Development FY20

1. Comparative period the year ended 30

June 2019.

2. Formerly The Timberyard, Deptford.


value.

4. Remaining estimated development end

value.

Overview

Drivers1 Outlook

• 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

• Delay in transactions across urbanisation projects impacted results

• Apartments for sale settlements: 1,366 units, down from 1,623 units

Elephant Park and Deptford Landings2, London; Clippership

Wharf, Boston; Paya Lebar Quarter, Singapore; and Victoria

Harbour and Melbourne Quarter, Melbourne

• Apartments for rent completions: 870 units, up from 452 units

Clippership Wharf, Boston; 845 West Madison, Chicago

• Strong presales:

One Sydney Harbour Tower 1, Barangaroo South, Sydney:

317 total units; c.75% presold

TRX Residences Building 1, Kuala Lumpur: 443 total units;

c.53% presold

• Development joint venture:

Victoria Cross over station development, Sydney: $1.2b3

Milano Santa Giulia, Milan: $4.0b3. First two buildings sold into

Joint Venture

• Next two residential for rent buildings at Elephant Park forward sold

• Completion of Paya Lebar Quarter, Singapore

• Communities:

Settlements 1,898 lots, down 25%

Sales 1,347 lots, down 14%

• US telecommunication towers: 125 completions

• Two new major urbanisation projects secured:

Thamesmead Waterfront, London: $15.1b3

San Francisco Bay Area project: $21.8b3

• Preferred bidder on Birmingham Smithfield: $2.8b3

• $113b development pipeline4

13 major apartment buildings in delivery across six gateway

cities

o One Sydney Harbour, Tower 1 development joint venture

formed post balance date

o 1,418 units presold in delivery: $2.3b

o 1,624 units for rent in delivery: $1.7b3

1,725 communities lots presold: $0.5b

c.376,000 sqm of commercial space in delivery across seven

major buildings: $5.8b3

Remaining secured pipeline not yet in delivery

o 53,183 apartment units: c.$66b

o c.2,039,000 sqm of commercial space: c.$25b

o 32 buildings in various stages of planning and

conversion

o Additional 25+ buildings in pipeline

Performance FY19 FY20

Core business EBITDA mix % 53 57

ROIC % 11.6 4.7

Invested capital $b 4.8 4.8


Development earnings / pipeline


value.

2. 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.

3. FY18, FY19 and FY20 include $0.1b,

$0.2b and $0.3b of Infrastructure

pipeline respectively.

EBITDA by region ($m) Pipeline1 by region ($b)

FY20 urbanisation pipeline1 by region Pipeline1 ($b)

556

121

3779

793

174

34116

(2)

322

Australia Asia Europe Americas Total

FY19 FY20

29.3

5.0

34.1

7.7

76.1

28.9

4.2

50.1

29.8

113.0


FY19 FY20

37.3 34.655.9 61.2

98.811.5 14.7

15.1 14.7

13.9

48.8 49.3

71.1³ 76.1³

113.0³


Urbanisation Communities²

15%

4%

51%

30%

Australia Asia Europe Americas

$98.8b


Residential development


2. Completions on residential for rent

apartments are aligned with practical

completion and are not necessarily

indicative of profit recognition.

Communities settlements

FY19 FY20

Lots $m Lots $m

QLD 530 117 549 123

NSW 449 109 255 122

VIC 1,216 301 940 252

SA 98 15 96 15

WA 84 19 58 14

Total Australia 2,377 561 1,898 526

Total Americas 146 5 - -

Total 2,523 566 1,898 526

Communities sales

FY19 FY20

Lots $m Lots $m

QLD 574 125 532 124

NSW 161 82 341 131

VIC 528 139 283 77

SA 114 18 60 8

WA 45 9 131 30

Total Australia 1,422 373 1,347 370

Total Americas 146 5 - -

Total 1,568 378 1,347 370

FY20 apartment settlements

Units $m

Apartments for sale

Australia

Melbourne Quarter - East Tower 302 183

Victoria Harbour - Collins Wharf 1 62 54

Other 5 4

Total Australia 369 241

Asia

Paya Lebar Quarter - Residential (3 Buildings) 429 609

Total Asia 429 609

Europe

Elephant Park - West Grove (Building 2) 201 269

Deptford Landings1 - Cedarwood Square 153 127

Other 117 81

Total Europe 471 477

Total Americas 97 168

Total apartment for sale settlements 1,366 1,495

Apartments for rent2

Americas

Clippership Wharf - Buildings 1 and 2 284 307

845 West Madison 586 485

Total apartment for rent completions 870 792

Total apartment settlements/completions 2,236 2,287


Non residential development commence-ments and completions


value.

City Project Building Sector Capital model End value1 ($b) sqm ‘000

Commercial commencements

SydneyVictoria Cross over station

development

Victoria Cross over station

developmentOffice Joint venture 1.2 58

Milan Milano Santa Giulia Spark One Office Fund through 0.2 28

Milan Milano Santa Giulia Spark Two Office Fund through 0.1 18

Commercial completions

Sydney Barangaroo South Daramu House Office Fund through 0.3 11

Singapore Paya Lebar Quarter Retail Retail Joint venture 1.1 29

London International Quarter London Building 3 Office / Retail Fund through 0.5 26

Location Completed (no.) End value ($m)

Telecommunications completions

Americas 125 118.1


Residential apartments1

1. Includes 100% of revenue from joint

venture projects.


value.

Movement in presales – Apartments for sale

Apartments for rent in delivery

By units By value2 ($b)

By units By value ($m)

675 652

423 236

1,013585

112

114

2,223

733 (1,366)

(3) 1,587

FY19 Sales Settlements Other FY20


0.81.1

0.70.6

1.5

0.9 (0.8)

0.1 1.7

FY19 Commence-ments

Completions FX andOther

FY20

Europe Americas

458

1,795571

152732

343150

1591,911

1,995 (1,495)

38 2,449

FY19 Sales Settlements FX andOther

FY20


663904

870720

1,533

961 (870)

1,624

FY19 Commence-ments

Completions FY20

Europe Americas


Residential communities –Australia

1. Includes 100% of revenue from joint

venture projects.

Movement in presales1

By lots By value ($m)

2,276

1,347 (1,898)

1,725

FY19 Sales Settlements FY20

625

370 (526)

469

FY19 Sales Settlements FY20


Pipeline provides long term earnings visibility


value. Includes Infrastructure of $0.3b.

2. Subject to market conditions. Targets

under review.

3. Refer to the Apartments Settlement

Profile on page 33 for a breakdown of

the major buildings.

4. Presales balance on major buildings in

delivery only.

5. Total estimated development end value

of c.$1.7b, with c.$0.8b realised to

date.

6. Refer to the Commercial Buildings

Completion Profile on page 34 for a

breakdown of the major buildings.

7. Total estimated development end value

of c.$5.8b, with c.$1.0b realised to

date.

Apartments

Commercial

Communities

Record secured pipeline1 of $113.0b controlled by invested capital of $4.8b

3,000 - 4,000

settlements

$113.0 billionTotal pipeline1

2 - 3

buildings

commenced

7 major buildings6 in delivery, with expected completion FY21 to FY25

1,000 - 2,000

settlements

Target

annual

turnover2

1,418 presold units and 1,624 units for rent across 13 major apartment buildings3 in delivery, expected delivery FY21 to FY25

376,000 sqm in delivery 2,039,000 sqm remaining 2,415,000 sqm

$4.8b⁷ in delivery $25.0b remaining $29.8b

1,725 lotspresold

45,647 lots remaining 47,372 lots

$0.5bpresold

$13.4b remaining $13.9b

1,418 unitspresold⁴

1,624 unitsfor rent

53,183 units remaining 56,225 units

$2.3b presold⁴

$0.9b⁵for rent

$65.8b remaining $69.0b


Major urbanisation project summary

1. Includes forecast commencement

dates, subject to change in delivery

program.

2. Based on expected completion date of

underlying buildings, subject to change

in delivery program.

3. Floor space measured as Net Lettable

Area.


value.

5. Formerly Circular Quay Tower.


7. Commercial in confidence.

Region Project

Project

secured

Delivery

commenced1

Completion

date2

Residential

backlog

units

Commercial

backlog

sqm ‘0003

Remaining

end value

($b)4Land payment

model

Australia Barangaroo South, Sydney FY09 FY12 FY26 849 1 4.1 Staged payment

Brisbane Showgrounds FY09 FY11 FY33 2,275 67 2.2 Land management

Melbourne Quarter FY13 FY16 FY26 1,186 124 2.0 Land management

Victoria Harbour, Melbourne FY01 FY04 FY27 2,043 - 2.0 Land management

Sydney Place5 FY12 FY17 FY22 - 59 1.9 Upfront payment

Waterbank, Perth FY13 FY21 FY29 1,308 12 1.4 Land management


development, SydneyFY19 FY20 FY25 - 58 1.2 Staged payment

Asia The Exchange TRX, Kuala Lumpur FY14 FY17 FY28 2,326 168 3.6 Staged payment

Europe Thamesmead Waterfront, London FY20 FY25 FY40+ 11,500 82 15.1 Land management

Euston Station, London FY18 FY26 FY40+ 2,000 400 10.9 Land management

Silvertown Quays, London FY18 FY21 FY33 3,000 440 6.6 Land management

Milano Santa Giulia FY18 FY20 FY34 2,558 232 3.8 Land management

Milan Innovation District FY19 FY21 FY32 1,125 338 3.7 Staged payment

International Quarter London FY10 FY14 FY29 351 212 3.4 Land management

Elephant Park, London FY10 FY12 FY26 1,775 50 2.3 Staged payment

High Road West, London FY18 FY22 FY30 2,501 14 2.1 Land management

Deptford Landings6, London FY14 FY16 FY28 1,300 9 1.4 Upfront payment

Americas San Francisco Bay Area project FY20 FY22 FY37 15,000 n/a7 21.8 Land management

Lakeshore East, Chicago FY19 FY20 FY26 1,197 2 2.2 Staged payment

Southbank, Chicago FY15 FY16 FY27 1,526 24 1.9 Upfront payment

30 Van Ness, San Francisco FY17 FY21 FY25 333 25 1.5 Upfront payment

Other urbanisation projects 2,072 98 3.7

Total urbanisation 56,225 2,415 98.8


Apartments settlement and completion profile

1. Closing presales balance as at 30 June

2020.

2. Subject to change in delivery program.

3. Affordable housing units presold within

apartment for rent buildings.

4. Project information is commercial in

confidence.

5. Joint venture formed post balance date

(Lendlease 75% ownership).



in delivery program. Not indicative of

cash or profit recognition.

City Project Building

Total

units Ownership Presold

Units

presold1Presales1

($b)

Delivery

date2

Residential for sale apartments

Melbourne Melbourne Quarter East Tower 719 50% 100% 417 0.3 FY21

London Elephant Park East Grove and Park Central North3 166 100% 100% 166 0.1 FY21

Boston Clippership Wharf Building 4 114 100% 88% 100 0.1 FY21

Manchester Potato Wharf Potato Wharf Block 3 & 4 191 100% 77% 147 0.1 FY22

Chicago Lakeshore East Cirrus 350 42.5% -4 -4 -4 FY22

London Elephant Park MP4 - H11A3 104 100% 100% 104 0.1 FY23

Kuala Lumpur The Exchange TRX TRX Residences Building 1 443 60% 53% 236 0.2 FY24

Sydney Barangaroo South One Sydney Harbour Tower 1 317 100%5 74% 235 1.5 FY24

City Project Building

Total

units Ownership

Delivery

date6

Residential for rent apartments

London Elephant Park East Grove and Park Central North 663 20.0% FY21

Chicago Lakeshore East Cascade 503 42.5% FY22

London Elephant Park MP4 - H11A 118 50.0% FY23

Chicago Southbank Building E 217 50.1% FY23

London Elephant Park MP5 - H7 123 50.0% FY25


Commercial buildings completion profile


Area.



in delivery program. Not indicative of

cash or profit recognition.

3. A funding model structured through a

forward sale to a capital partner

resulting in staged payments prior to

building completion.

4. Build, Own, Operate, Transfer.

5. Formerly Circular Quay Tower.

City Project Capital model sqm '0001 Building Completion date2

Melbourne Melbourne Quarter Fund through3 51 Two Melbourne Quarter FY21

Melbourne Melbourne Connect BOOT4 40 Melbourne Connect FY21

Milan Milano Santa Giulia Fund through3 28 Spark One FY22

Milan Milano Santa Giulia Fund through3 18 Spark Two FY22

Sydney Sydney Place5 Joint venture 59 Salesforce Tower FY22

Kuala Lumpur The Exchange TRX Joint venture 122 Retail FY23

SydneyVictoria Cross over station

developmentJoint venture 58


developmentFY25

Total 376


Conversion of secured pipeline

1. Subject to approval and contractual

conditions.


Indicative conversion timing1 of secured residential for rent pipeline to FY25

City Project Buildings Sector Units FY21 FY22 FY23 FY24 FY25

London Deptford Landings2 - Stage 1 1 Residential 251

Milan Milan Innovation District 1 Residential 273

London Deptford Landings2 - Stage 2 1 Residential 189

Chicago Southbank - Stage 1 1 Residential 295

London High Road West 1 Residential 412

London Silvertown Quays 2 Residential 399

Chicago Southbank - Stage 2 1 Residential 302

San Francisco

Bay AreaSan Francisco Bay Area project 7 Residential c.1,800

Total 15 3,921


Conversion of secured pipeline

1. Subject to approval and contractual

conditions, and tenant

precommitments.


Area.

Indicative conversion timing1 of secured commercial pipeline to FY25

City Project Buildings Sector sqm ‘0002 FY21 FY22 FY23 FY24 FY25

Melbourne Melbourne Quarter 1 Office 73

Kuala Lumpur The Exchange TRX 2 Hotel / Office 47

London International Quarter London - Stage 1 1 Office 34

San Francisco 30 Van Ness 1 Office 25

Brisbane Brisbane Showgrounds 1 Office 32

Perth Waterbank 1 Office 11

Milan Milan Innovation District - Stage 1 6 Hotel / Office 100

London Silvertown Quays - Stage 1 2 Office 24

Milan Milano Santa Giulia - Stage 1 8 Office / Retail 103

Chicago Southbank 1 Office 21


Milan Milan Innovation District - Stage 2 3 Office 33

London International Quarter London - Stage 2 1 Office 33

Milan Milano Santa Giulia - Stage 2 1 Office 20


Total 32 591


Communities projects

1. The expected financial year in which

the last land lot will be settled. Based

on expected completion of underlying

land lots, subject to change in delivery

program.

2. Estimated backlog includes the total

number of units in Group owned, Joint

Venture and managed projects. The

actual number of units for any particular

project can vary as planning approvals

are obtained.

3. Net developable land in relation to

master-planned urban communities.

The actual land area for any particular

project can vary as planning approvals

are obtained.

Project Location

Land payment

model

Completion

date1

Residential

backlog land

lots2

Commercial

backlog

sqm ‘0003

Yarrabilba QLD Staged payment FY47 13,960 2,028

Elliot Springs QLD Land management FY62 10,535 1,050

Shoreline QLD Land management FY34 2,950 93

Springfield Lakes QLD Land management FY27 2,720 13

Calderwood Valley NSW Land management FY35 3,055 152

Figtree Hill NSW Staged payment FY35 1,585 243

Bingara Gorge NSW Land management FY27 1,030 50

St Marys - Jordan Springs NSW Upfront payment FY24 835 296

The New Rouse Hill NSW Land management FY22 510 -

Kings Central (formerly Werrington) NSW Upfront payment FY24 350 31

Atherstone VIC Land management FY28 2,475 52

Harpley VIC Land management FY29 2,460 209

Aurora VIC Staged payment FY28 1,860 89

Blakes Crossing SA Upfront payment FY21 45 8

Alkimos Beach (formerly Alkimos) WA Land management FY29 1,135 22

Alkimos Vista WA Land management FY26 505 -

Horizon Uptown Americas Upfront payment FY36 1,361 747

Other communities 1 1

Total communities 47,372 5,084


Development deal structuring tailored to local market

1. Joint venture formed post balance date.

2. Typical funding models used across

segment examples.

3. With the exception of Singapore where

revenue from residential apartments is

recognised on percent complete basis.

4. Based on apartment projects delivered

100% on-balance sheet.

5. Only where Construction and / or

Investments segments are engaged to

play a role in the project.

Communities

Urbanisation

Apartments for Sale Forward sale Joint venture structure

Project

examples

• St Marys - Jordan Springs,

Sydney

• Yarrabilba, Brisbane

• Clippership Wharf, Boston

• Elephant Park, London

• Office: Spark One and Two,

Milano Santa Giulia

• Residential for rent:

Elephant Park, London and

Building E, Southbank,

Chicago

• One Sydney Harbour,

Barangaroo South, Sydney1

• Sydney Place (formerly

Circular Quay Tower),

Sydney

Land

funding2

• Land ownership

• Land management

• Staged payments

• Land management

• Staged payments

• Land management

• Staged payments

• Land ownership via joint

venture (including project

financing)

Production

funding2 • 100% on-balance sheet• Largely 100% on-balance

sheet

• Capital partner progress or

staged payments

• Funded via joint venture

(including project financing)

P&L returns• Development profit on sold

product at settlement

• Development profit on sold

product at settlement3

• Construction margin on

settlement4

• Development profit typically

upfront at time of sale

• Development management

fees, construction margin5

and investment

management fees5 during

delivery

• Development profit tied to

equity interests

• Development management

fees, construction margin5

and investment

management fees5

(including performance

fees) during delivery

Cash returns

(Development

only)

• On settlement • On settlement• Upfront and over life of

project during delivery

• Linked to cash equity

returns or sell down of

investment typically post

practical completion


Land payment models1

1. Options are not discrete rather are on a

continuum. Combinations of multiple

options are therefore possible. Where

agreements are in place with local or

central government, contributions to

social infrastructure, affordable housing

or other costs may be provided in

addition to or in lieu of direct land

value.

Overview of land payment / structuring models and implication for timing and risk share

Land payment

modelUpfront payment Staged payment Land management

OptionOutright land

purchaseFixed payments

Discretionary draw

downResidual land value Overage

When pricing is

finalisedUpfront Upfront Upfront

On draw down

of each phase

At development

completion

Payment / draw

down timingUpfront Staged

On draw down

of each phase

On draw down

of each phase

At development

completion

Description • Land acquired and

fully transferred to

the Developer

upfront

• Land price and timing agreed upfront

• Transfer of land plots may occur upfront, or, be staged to match payment schedule

• Land price agreed upfront at either a fixed value or percentage of end value

• Draw down of land plots at Developer discretion within longstop dates

• Developer return metrics agreed upfront

• Land value calculated at phase draw down; referral to independent expert if required

• Draw down of land plots at Developer discretion within sunset dates

• Developer earns a priority return, above which overage is shared with the Land Owner

• May include a fixed minimum amount payable to the Land Owner in advance

More price certainty to

land owner

More development risk and

value share to land owner

1 2 3 4 5

Construction

Segment

South Australia: Osborne South Development Project


Construction Non Core

Australia Asia Europe Americas Australia

$3.2b $0.3b $0.8b $3.4b $2.9b

FY21 36%

FY22 26%

Post FY22 38%

FY21 68%

FY22 26%

Post FY22 6%

FY21 74%

FY22 23%

Post FY22 3%

FY21 57%

FY22 20%

Post FY22 23%

FY21 46%

FY22 26%

Post FY22 28%

$7.5b $0.7b $1.3b $4.4b $5.1b

Earnings drivers - ConstructionEBITDA margin target 2-3%; Backlog $13.9b

Re

gio

n

Re

ve

nu

e

last 1

2

mo

nth

s

Ba

cklo

g

rea

lisa

tio

nB

acklo

g


Construction FY20

1. From external clients.


June 2019.

3. Formerly 130 Lonsdale Street.

4. Formerly Australian National University

Union Court Redevelopment.

5. Formerly 140 Lonsdale Street.

6. Includes all Construction projects with

backlog greater than $100m, which

represents 81% ($11.2b) of secured

backlog.

Overview

Drivers2 Outlook2

• Provides project management, design and construction services,

predominantly in the defence, mixed use, commercial and residential

sectors

• Financial returns are generated via project management and

construction management fees, in addition to construction margin1

• Revenue of $7.6b, EBITDA of $101m

• EBITDA margin 1.3%, down from 2.2%

All profit generated in H1 with the impact of COVID-19 resulting

in a break even result in H2

Impact greater in international regions with site shutdowns, lower

productivity, projects on hold and delays in the commencement

of new projects

Projects completed during the period included: Wesley Place3,

60 Martin Place, redevelopments at Kambri Precinct at ANU4

and Rod Laver Arena, residential tower at 220 Central Park

South

Significant completions on integrated projects, most margin

recognised in Development segment: Paya Lebar Quarter; 845

West Madison, Chicago; Cedarwood Square, Deptford Landings

• New work secured of $7.5b, down from $9.9b

Australia $4.3b, down from $4.5b: Key projects secured

included: Victoria Cross over station development, HMAS

Watson Redevelopment – Delivery Phase, Australian Federal

Police Melbourne State Office5, Curtin University School of

Design and Built Environment

Americas $2.4b, down from $3.7b: lower activity across key

cities and slowdown in high rise residential market. Projects

secured include 4 Hudson Square and Cirrus, Lakeshore East

• Backlog revenue of $13.9b, down from $15.6b

Diversified by sector, client and target market/geography

Major project6 sector exposures: Commercial 26%, Defence

25%, Residential 23%, Social Infrastructure 11%

Australia $7.5b: Randwick Campus Redevelopment – IASB,

HMAS Cerberus - Delivery Phase, Sydney Place, Sydney

Metro Martin Place Integrated Station Development

Americas $4.4b: Jacob K. Javits Convention Center, Rose Hill

• Backlog realisation:

FY21: 48%

FY22: 24%

Post FY22: 28%

• Preferred bidder status of c.$8b including

Australia: Tweed Valley and Caboolture Hospitals, New

Performing Arts Venue, Geelong Arts Centre and several

Defence projects

Americas: mix of residential and commercial projects

Asia: The Exchange TRX – Hotel, Office and Park

Europe: Richmond House, St John’s Wood Square and Glen

Parva



EBITDA margin % 2.2 1.3

New work secured $b 9.9 7.5

Backlog $b 15.6 13.9


Construction earnings

1. Major currency in region.

EBITDA ($m) EBITDA margin

EBITDA Europe (£m1) EBITDA Americas (US$m)

126

(1)

40 46

211

97

(11) (9)

24

101


FY19 FY20

3.1%

(0.2%)

4.3%

1.1%

2.2%3.0%

(4.3%) (1.2%)0.7%

1.3%


FY19 FY20

22

(5)

FY19 FY20

33

16

FY19 FY20


Construction backlog

1. Includes all Construction projects with

backlog greater than $100m, which

represents 81% ($11.2b) of secured

backlog.

Backlog ($b) FY20 backlog by region

FY20 backlog by client FY20 backlog by sector

15.2 15.7 15.2 15.6

13.9


54%

5%

9%

32%


$13.9b

24%

32%

44%

Lendlease Corporate Government

Major Project1

Backlog

Revenue

26%

25%23%

11%

8%6%1%

Commercial Defence Residential

Social Infrastructure Transport Hotel/Entertainment

Other

Major Project1

Backlog

Revenue


Construction backlog by region

1. Ratio calculated as new work secured

over revenue realised to the nearest

million.

2. Includes ($0.9b) of internal revenue.

Group ($b) Australia ($b)

Europe ($b) Americas ($b)

1.7

0.5 (0.8)

(0.1) 1.3

Book to bill¹: 0.6


Revenuerealised

FX andOther

FY20

6.2

2.4 (3.4)

(0.8)4.4

Book to bill¹: 0.7


Revenuerealised

FX andOther

FY20

6.9

4.3 (3.2)

(0.5) 7.5

Book to bill¹: 1.3


Revenuerealised

Other FY20

15.6

7.5 (7.6)

(1.6)²13.9

Book to bill¹: 1.0


Revenuerealised

FX andOther

FY20


Australia: Major Projects1,2

1. Disclosure of major projects is subject

to client approval. This could impact the

projects available for disclosure.

2. Backlog revenue as at 30 June 2020

for the projects listed totals $6.1b,

representing 81% of total Australia

backlog revenue.

3. Contract types are Managing

Contractor (MC), Design and Construct

(D&C), and Construction Management

(CM).

4. Contract value for the project as

approved by the client for disclosure.

Where Lendlease is in a joint venture, it

is the Lendlease share.




6. Excludes new commercial buildings,

pedestrian connections and retail

space as these are commercial in

confidence.

7. Contract value is subject to commercial

in confidence and not available for

disclosure.

Project Location

Contract

type3

Contract

value4 ($m)

Secured

date

Completion

date5 Sector

Crown Sydney Hotel Resort NSW MC 1,091.4 FY15 FY21 Hotel/Entertainment

RAAF Tindal Stage 6 and USFPI Airfield Works NT MC 1,083.2 FY20 FY28 Defence

Sydney Place NSW D&C 717.8 FY19 FY22 Commercial

One Sydney Harbour Tower 1 NSW D&C 709.6 FY20 FY24 Residential

AIR 7000 Phase 2B SA MC 485.0 FY16 FY21 Defence

Sydney Metro Martin Place Integrated Station Development NSW D&C 481.76 FY19 FY24 Transport

Sydney Metro Victoria Cross Integrated Station Development NSW D&C 469.1 FY19 FY24 Transport

HMAS Cerberus - Delivery Phase VIC MC 433.1 FY18 FY23 Defence

Victoria Cross over station development NSW D&C 410.0 FY20 FY25 Commercial

HMAS Watson Redevelopment - Delivery Phase NSW MC 388.6 FY20 FY27 Defence

ADF Air Traffic Control Complex Infrastructure Project National MC 378.5 FY16 FY21 Defence

Melbourne Connect VIC D&C 371.5 FY18 FY21 Other

Melbourne Quarter - Two Melbourne Quarter VIC D&C 340.6 FY18 FY21 Commercial

Randwick Campus Redevelopment – IASB NSW D&C 340.0 FY18 FY22 Social Infrastructure

Melbourne Quarter - East Tower VIC D&C 280.8 FY18 FY21 Residential

Stage 2 Garden Island Critical Works Delivery Phase NSW MC 268.3 FY19 FY24 Defence

Melbourne Park Redevelopment Stage 3 VIC D&C 242.2 FY19 FY21 Social Infrastructure

Joan Kirner Women's and Children's Hospital Projects VIC MC 239.4 FY16 FY21 Social Infrastructure

Australian Bragg Centre SA MC 217.5 FY20 FY24 Social Infrastructure

Stage 1 Garden Island Delivery Phase NSW MC 200.7 FY18 FY21 Defence

BaptistCare SAHF NSW D&C 198.9 FY17 FY21 Residential

Gold Coast Airport, Southern Terminal Expansion QLD D&C 196.7 FY19 FY21 Transport

Goulburn Valley Health Shepparton Redevelopment VIC MC 193.0 FY18 FY22 Social Infrastructure

One Sydney Harbour Basement NSW CM 169.8 FY19 FY21 Other

Curtin University School of Design and Built Environment WA D&C 102.0 FY20 FY21 Social Infrastructure

Silverwater Correctional Facility Expansion NSW D&C n/a7 FY18 FY21 Social Infrastructure

Australian Federal Police Melbourne State Office (formerly 140

Lonsdale Street)VIC D&C n/a7 FY20 FY23 Commercial


Asia and Europe: Major Projects1,2





for the projects listed totals $0.6b (Asia)

and $1.0b (Europe), representing 86%

(Asia) and 77% (Europe) of total

backlog revenue for these regions.

3. Contract types are Managing

Contractor (MC), Design and Construct

(D&C) and Construction Management

(CM).








Project Location

Contract

type3

Contract

value4 ($m)

Secured

date

Completion

date5 Sector

Asia

The Exchange TRX - Retail Kuala Lumpur MC 544.8 FY18 FY23 Commercial

Ardor Gardens Shanghai, China CM 196.6 FY19 FY22 Residential

Europe

Perry Barr Residential Scheme Birmingham MC 569.7 FY19 FY22 Social Infrastructure

Elephant Park - Park Central North London D&C 280.9 FY18 FY21 Residential

1 Triton Square London D&C 272.5 FY17 FY21 Commercial

Elephant Park - East Grove London D&C 239.3 FY18 FY21 Residential

Google UK HQ (formally Google European HQ) London CM 212.3 FY18 FY23 Commercial

Elephant Park MP4 - H11A London MC 156.3 FY20 FY23 Residential

Manchester New Square Manchester D&C 152.3 FY18 FY21 Residential

St John's Manchester Goods Yard Manchester D&C 139.3 FY19 FY21 Commercial

Oxford House London D&C 105 - 125 FY19 FY21 Commercial


Americas: Major Projects1,2





for the projects listed totals $1.9b,

representing 43% of total Americas

backlog revenue.

3. Contract types are Construction

Management (CM), Lump Sum (LS)

and Guaranteed Maximum Price

(GMP).








6. Contract value is subject to commercial

in confidence and not available for

disclosure.

Project Location

Contract

type3

Contract

value4 ($m)

Secured

date

Completion

date5 Sector

Americas

Jacob K. Javits Convention Center New York LS 908.4 FY17 FY21 Hotel/Entertainment

New York Methodist Hospital New York CM 473.9 FY16 FY21 Social Infrastructure

Clippership Wharf Boston GMP 325.7 FY16 FY21 Residential

Lakeshore East - Cirrus Chicago GMP 321.7 FY20 FY22 Residential

Lakeshore East - Cascade Chicago GMP 233.5 FY20 FY22 Residential

Rose Hill New York GMP n/a6 FY19 FY21 Residential

Central Park Tower New York CM n/a6 FY13 FY22 Residential

Brooklyn Point New York CM n/a6 FY16 FY21 Residential

430 East 58th Street New York GMP n/a6 FY17 FY23 Residential

Ritz Carlton Hotel New York GMP n/a6 FY19 FY21 Hotel/Entertainment

Rahway Formulation, Laboratory and

Experimental CenterBoston GMP n/a6 FY19 FY22 Commercial

Andover Manufacturing & Development Facility Boston CM n/a6 FY19 FY21 Commercial

4 Hudson Square New York GMP n/a6 FY20 FY21 Commercial

PA Vaccine Research and Development Facility Boston GMP n/a6 FY18 FY21 Commercial

Taystee Lab Building New York GMP n/a6 FY17 FY21 Social Infrastructure

Investments

Segment

Singapore: 313@somerset


Ownership EarningsCapital intensive activities

Operating EarningsCapital light activities

Co-investment

positions in

managed funds

$2.0b

Retirement

Living

$1.4b

US Military

Housing

$211m

US Telco

Infrastructure

$291m

Funds

Management

Platform

$36.0b FUM

Commercial

Asset

Management

$15.1b AUM

Residential

Asset

Management

$14.2b AUM

Distributions and

capital growth

Equity investment

returns

Equity investment

returns

Income and capital

growth

Funds

management fees

% of FUM

Property and

development

management fees

% of value driver

Asset and property

management fees,

and occupancy

High quality assets

driving rental

income,

occupancy and

asset valuations

Occupancy rate,

turnover rate,

growth rate,

discount rate and

opex

Occupancy rate,

growth rate,

discount rate and

opex

Number of

operators per

tower, lease term,

growth rate and

discount rate

FUM growth

Asset

performance,

leasing and

development

activity

Rent growth

Earnings drivers - Investments

1. Through-cycle target based on rolling three to five year timeline.

ROIC target 8-11%1; Invested capital $3.7b

Inve

ste

d

ca

pita

l

Re

turn

s

an

d m

etr

ics

Va

lue

drive

rs

FU

M /

AU

M

Re

turn

s

an

d m

etr

ics

Va

lue

drive

rs


Investments FY20

1. Nonmeaningful in FY20 due to negative

contribution to earnings.


June 2019.

Overview

Drivers2 Outlook

• Owns and/or manages investments including a leading investment

management platform and also includes the Group’s ownership

interests in co-investments, Retirement and other investments

• Financial returns include fund and asset management fees, and

yields and capital growth on ownership interests

• Operating EBITDA $198m

FUM growth of 2% resulting in small rise in base fees

Significant performance fee post completion of Paya Lebar

Quarter project

APPF Retail redemptions process ongoing

Commercial AUM of $15.1b

Residential AUM of $14.2b across military housing and

residential for rent assets

• Ownership EBITDA, loss of $58m

Total devaluations of $188m resulted in a loss for the year

Co-investments

o Asset devaluations in the period of c.5% across the portfolio

o Lower income from Australian portfolio following

divestments

o Lower investment income from COVID-19 related disruption

to trading performance

Retirement

o Lower returns - 3.8% increase in resales across the

portfolio offset by price declines and deferred development

activity

Equity returns on US Military Housing portfolio

Asset devaluations across other investments

Establishment of Lendlease Global Commercial REIT in

Singapore

• 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

• Operating earnings

FUM of $36b, c.150 institutional investors

o Scale platforms in office and retail

o Building scale in residential for rent asset class

c.$3.3b of additional secured future FUM across development

projects in delivery through funds and mandates

Significant opportunities from the remaining development

pipeline

c.$2b mandate to manage TCorp portfolio from 1 July 2020

$15.1b Commercial AUM

$14.2b Residential AUM

• Ownership earnings

$2.0b co-invested in funds, capital partner alignment

$1.4b of capital in retirement investment

$0.6b of other income producing assets



ROIC % 10.8 2.8

Invested capital $b 3.6 3.7

Co-investment revaluations $m 103 (109)

Co-investment revaluations / Core business

operating EBITDA% 6.9 n/a1


Investments earnings / ownership

1. Returns derived from co-investments,

the Group’s Retirement investment, US

Military Housing equity investment and

other investments.

2. Earnings primarily derived from the

investment management platform and

the management of US Military

Housing operations.

3. The Group’s assessment of market

value of ownership interests. Total

invested capital in the segment of

$3.7b in FY20.

EBITDA by region ($m) Investments EBITDA by activity ($m)

Investments3 by product ($b) Investments3 by region ($b)

46% 49%

38% 34%

6% 5%

10% 12%

3.7 4.0

FY19 FY20

Co-investments Retirement US Military Housing Other

69%58%

19%23%

1%2%

11% 17%

3.7 4.0

FY19 FY20


330

509

100

489

3567

(10)48

140


FY19 FY20

345

144

(58)

198

Ownership interests¹ Operating earnings²

FY19 FY20


Funds Under Management1

(FUM)

1. The Group’s assessment of market

value.

2. Compound Annual Growth Rate.

FUM ($b)

FY20 FUM by asset class FY20 FUM by region

23.626.1

30.1

35.2 36.0


CAGR² of 11.1%

69%

24%

4%

3%


$36.0b$36.0b 54%36%

5%

3% 2%

Office Retail Residential Industrial Other


FUM1 by region

1. The Group's assessment of market

value.

Group ($b) Australia ($b)

Asia ($b) Europe ($b)

24.8

1.4 (1.2)

(0.7)0.4 24.7

FY19 Additions Divest-ments

Revaluations Other FY20

8.2

1.7 (0.7)

(0.3)(0.2)

8.7


Revaluations FX andOther

FY20

1.5

0.5 - (0.4)

- 1.6



FY20

35.2

3.9 (1.9)

(1.4)

0.2 36.0



FY20


FUM1 by region


value.

Australia FUM Fund type Asset class FY19 ($b) FY20 ($b)

Managed Investment Mandates Core Various 4.4 5.3

Australian Prime Property Fund Commercial Core Office 5.1 5.2

Lendlease International Towers Sydney Trust Core Office 4.6 4.8

Australian Prime Property Fund Retail Core Retail 5.7 4.4

Lendlease One International Towers Sydney Trust Core Office 2.7 2.7

Australian Prime Property Fund Industrial Core Industrial 1.0 1.1

Lendlease Sub Regional Retail Fund Core Retail 0.6 0.5

Lendlease Public Infrastructure Investment Company Core Social Infrastructure 0.4 0.4

Lendlease Real Estate Partners New Zealand Core Retail 0.3 0.3

Total Australia 24.8 24.7

Asia FUM Fund type Asset class FY19 ($b) FY20 ($b)

Paya Lebar Quarter Core Office and Retail 3.3 3.3

Lendlease Asian Retail Investment Fund Core Retail and Office 2.8 1.9

Lendlease Global Commercial REIT Core Retail and Office - 1.5

Parkway Parade Partnership Limited Core Plus Retail 1.5 1.4

Lendlease Jem Partners Fund Limited Core Retail and Office 0.6 0.6

Total Asia 8.2 8.7

Europe FUM Fund type Asset class FY19 ($b) FY20 ($b)

Lendlease Retail LP Core Retail 1.2 0.8

Lendlease Residential Investment Partnership Core Residential 0.3 0.6

Lendlease Residential Investment Partnership 2 Core Residential - 0.1

Lendlease MSG 1 Europe Investment Partnership Core Office - 0.1

Total Europe 1.5 1.6

Americas FUM Fund type Asset class FY19 ($b) FY20 ($b)

Lendlease Americas Residential Partnership Value Add Residential 0.7 1.0

Total Americas 0.7 1.0


Major fund summary1

1. Does not comprise Lendlease’s complete Funds Management Platform. 2. Australian Prime Property Fund Retail. 3. Australian Prime Property Fund Commercial. 4. Australian Prime Property Fund Industrial. 5. Lendlease International Towers

Sydney Trust (Barangaroo South T2 and T3, International House and Towns Place Car Park). 6. Lendlease One International Towers Sydney Trust (Barangaroo South T1). 7. Paya Lebar Quarter. 8. Lendlease Asian Retail Investment Fund. 9.

Parkway Parade Partnership Limited. 10. Lendlease Global Commercial REIT. 11. Lendlease Residential Americas Partnership. Total assets includes six buildings (three buildings are under construction and not yet operational). All other metrics

refer to the three operational buildings only.

FY20 funds management platform

APPFR2 APPFC3 APPFI4 LLITST5 LLOITST6 PLQ7 ARIF8 3 (Jem) PPPL9 LLGCREIT10 LRAP11

Total assets $b 4.4 5.2 1.1 4.8 2.7 3.3 1.7 1.4 1.5 1.0

Gearing % 29.9 6.3 9.6 16.5 19.1 59.5 42.4 37.1 35.1 45.1

Co-investment % 1.9 8.1 10.5 3.9 2.5 30.0 20.1 10.2 25.3 50.0

Co-investment $m 57 372 101 153 53 361 180 72 261 173

Region Aus Aus Aus Aus Aus Asia Asia Asia Asia Amer

Asset class Retail Office Industrial Office OfficeOffice and

Retail

Retail and

OfficeRetail

Retail and

OfficeResidential

Number of assets no. 10 19 35 4 1 4 1 1 4 3

Occupancy % 95.7 96.0 96.3 95.1 99.5 90.1 99.2 99.1 99.5 71.2

Weighted avg. cap rate % 5.3 4.7 6.1 4.6 4.6 3.9 4.3 5.0 4.5 4.5


Investments1


value of ownership interests.

2. 313@somerset retail centre was sold to

the Lendlease Global Commercial REIT

during FY20.

Australia co-investments FY20 Lendlease interest FY19 ($m) FY20 ($m)

Australian Prime Property Fund Commercial 8.1% 369 372

Lendlease International Towers Sydney Trust 3.9% 238 153

Australian Prime Property Fund Industrial 10.5% 96 101

Craigieburn Central 25.0% 82 69

Australian Prime Property Fund Retail 1.9% 74 57

Lendlease One International Towers Sydney Trust 2.5% 54 53

Lendlease Public Infrastructure Investment Company 10.0% 40 40

Lendlease Sub Regional Retail Fund 9.9% 36 25

Lendlease Real Estate Partners New Zealand 5.3% 11 8

Other 1 -

Total Australia 1,001 878

Asia co-investments FY20 Lendlease interest FY19 ($m) FY20 ($m)

Paya Lebar Quarter 30.0% 284 361

Lendlease Global Commercial REIT 25.3% - 261

Lendlease Asian Retail Investment Fund (ARIF)

ARIF 1 (313@somerset)2 - 44 -

ARIF 2 (Setia City Mall) 39.4% 30 35

ARIF 3 (Jem) 20.1% 201 180

313@somerset2 - 99 -

Parkway Parade Partnership Limited 10.2% 43 72

Total Asia 701 909

Americas FY19 FY20

Lendlease Residential Americas Partnership, co-investment $m - 173

US Military Housing, invested equity $m 211 211

Telecommunications assets, invested equity $m 203 291

Telecommunications towers no. 308 433


Assets Under Management (AUM)1 by region


value.

2. Gross Lettable Area.

Commercial

FY20 GLA2

sqm '000 FY19 ($b) FY20 ($b)

Australia 774.7 7.5 6.1

Asia 475.9 7.2 8.5

Europe 141.7 0.7 0.5

Total 1,392.3 15.4 15.1

Residential

Total Military Housing Residential for Rent

AUM ($b) Housing units Lodging units Total units

Avg portfolio

life

(years)Units Buildings

Americas 14.2 39,358 12,431 51,789 36 736 3


Retirement summary

1. 100% of Retirement Living business.

2. Includes aged care beds licences.

Investment ($m)

FY20 units and villages by state1

Value drivers1 FY19 FY20

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. 12,785 12,858

Units resold no. 842 874

Development

Pipeline2 no. 3,829 3,077

Pipeline $b 1.8 1.6

Sales/Settlements no. 150 104

Sales/Settlements $m 86.0 56.8

4,0883,371

2,932

1,636

531 300

26

17

12

10

43

VIC NSW QLD WA SA ACT

Units Villages

1,397 1,354

FY19 FY20


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 FY20 refers to the full year period ended 30 June 2020 unless otherwise stated. All figures are in AUD unless otherwise stated.

lendlease group 2020 full year results announcement ... · lendlease group 2020 full year results...

Documents