For personal use only

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1 19 September 2017 Americas Market Briefing Attached is the presentation to be given today by Denis Hickey, Chief Executive Officer - Americas, Lendlease. The presentation will be webcast live via ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: Investors: Media: Justin McCarthy Mathew Charles Mob: Mob: Lendlease Corporation Limited ABN and Lendlease Responsible Entity Limited ABN AFS Licence as responsible entity for Lendlease Trust ABN ARSN Level 14, Tower Three, International Towers Sydney Telephone Exchange Place, 300 Barangaroo Avenue Facsimile Barangaroo NSW 2000 Australia lendlease.com

2 Market Briefing: Americas Denis Hickey, Chief Executive Officer Americas 19 September 2017

3 2 Experience in the Americas spans almost 50 years 1970 Lendlease expands to the US 1999 Grand Central Revitalisation 2001 First MHPI Project Fort Hood, TX 2009 Financial close PAL A 2015 ONE Secured Riverline 2016 Oceanwide 2016 CIRCA Park Avenue, New York 1970s 1990s 2000s Citifield 2011 National September 11 th Memorial & Museum 2015 Secured th Avenue New York 2015 Secured Clippership Wharf 2017 Secured Parallel Portfolio 2017 Secured 30 Van Ness

4 Earnings Drivers For personal use only Business Segments 3 Established business Contribution to Group 1 Business model $161.9m EBITDA, 12% of Group operating result $4.3b Urbanisation development pipeline, 12% of Group $7.8b Construction backlog revenue, 38% of Group Over 53,000 units and hotel rooms under management in Military Housing $0.1b Investments, 3% of Group $0.5b invested capital, 8% of Group 2 (target range is 5-20%) Established business current structure Development Construction Investments Urbanisation projects Construction Management Military Housing Military Housing Telecommunications infrastructure Design and Construct (including Military Housing) Telecommunications infrastructure Development profit and development management from urbanisation projects Development management fees from Military Housing Development profit from Telco towers Construction margins Project Management margins Asset and Property management on Military Housing Equity returns on Military Housing Investment income from telecommunications towers 1. All figures quoted in AUD, FY17 as at 30 June Excluding Corporate invested capital

5 4 Strategy Group strategic framework Lendlease Americas Strategy Shift in focus from delivery led to development led 1. Defend and extend core businesses: Strategic shift for Construction to fewer markets, broader sectors and higher margin activities Continue to grow Military Housing business 2. Diversify into new sectors and income streams: Enter sectors that leverage our skills (locally and globally) Create a sustainable Development pipeline Become a developer/owner in the Telco sector Establish an Investment Management platform 3. Research and capability led, with strong governance and risk management: Clear framework for all capital investment decisions and performance management Recruitment of skilled, local, sector experts to drive growth Alignment with Group strategic direction Urbanisation Urbanisation projects across US gateway cities $4.3b Americas pipeline 1 Infrastructure Established construction business Leveraging capability into US telecommunications infrastructure Funds growth Potential future product from pipeline, including new asset classes of residential for rent and telecommunications Sustainability One of the first certified LEED neighbourhood developments in the US Funds managed by the Group are recognised by GRESB as international leaders 2 Technology Increasing innovation in the design and construction process Enabling and facilitating telco infrastructure Ageing population Long term aspiration of exploring entry into the Senior Living space as a developer 1. As at 30 June Global Real Estate Sustainability Benchmark (GRESB) 2017 survey; 5 Lendlease funds achieved no.1 ranking in respective global/ regional category

6 5 Strategic direction: development led, integrated business Current position Strategic focus Development Construction Investing phase Initial pipeline secured, entering execution phase Strong skills in Development including residential build to sell, multifamily (residential for rent) and office sectors Ongoing development opportunities in Military Housing business Mature platform Market leader in residential high rise construction Focused six city strategy Construction Management focus (lower margin, lower risk) Establish scale urbanisation platform in target gateway cities (focus on large scale, mixed use, phased developments) Unlock outer-year development scope and adjacent development opportunities in Military Housing Increase telecommunications infrastructure development Explore opportunity for deploying the military housing model into adjacent sectors Maintain targeted six city strategy Diversify sector exposure across residential, office, education, civic and healthcare Strengthen skills in Design & Construction Greater proportion of revenue from internal projects Investments Opportunity to grow Established mature Military Housing business Entry into multifamily sector Entry into telecommunications sector Maintain strong Military Housing investment, grow Lodging platform and explore adjacent opportunities Establish strong capital partnering capability in develop to core investments, leveraging global and local capital partners Create scale funds management products in multifamily (residential for rent) and telecommunications infrastructure Delivery led Development led

7 6 Development: urbanisation opportunities in gateway cities Boston Chicago New York San Francisco Los Angeles Lendlease targeted gateway cities Target market attributes Focused strategy Lendlease value proposition Population density and growth Economic output and diversity Growth in and diversity of employment Educated workforce High barriers to entry Significant public infrastructure Dominant share of US capital flows Strategy focused on gateway cities Large scale, mixed use, phased developments Primary focus on residential, office and mixed use retail Capability led with strong local team knowledge mixed with Lendlease global experience Co-investment and capital partner opportunities accelerate scale and growth Strong local knowledge and expertise in all identified gateway cities Global perspective/capability for customers/clients that value place creation/masterplanning and product innovation Integrated model/delivery capability Co-investment ability creates strong alignment between parties

8 7 Development: our urbanisation pipeline 1 Clippership Wharf Boston 277 Fifth Avenue New York Riverline Chicago 845 West Madison Chicago 30 Van Ness San Francisco Mixed condominium and multifamily 2 residential product $0.4 billion estimated end development value Two phase mixed use development across 478 residential units Phase 1 estimated completion FY19 Residential mid-luxury condominium project $0.7 billion estimated end development value 130 residential units in one tower Under construction, estimated completion FY19 Large urbanisation mixed use development $2.5 billion estimated end development value 3,750 residential apartments First multifamily 2 building under construction, estimated completion FY19 Entire city block development of 584 residential apartments $0.4 billion estimated end development value Mix of apartments and townhouses Project currently in planning Large scale mixed use opportunity Existing zoning permits a mixed use office and residential tower Potential for rezoning to increase building height and density Project currently in planning 1. Project value, size and timing are an estimate and are subject to change 2. Residential for rent

9 8 Development: telecommunications infrastructure Existing portfolio 423 Towers 135 Completed 288 In development Opportunity Business economics Lendlease value proposition Forecast growth in data usage is driving greater densification of network 5G rollout will drive greater demand Leverage carriers desire for alternate providers to big three tower companies Become a preferred partner for the development of new towers and rooftops Align with investors to leverage Lendlease capital and drive growth All new towers/rooftops have minimum one anchor tenant (no speculative development) Average tenants per tower across the industry is around 2 1 (improved economics via multiple tenants) Ground leases c.25 years with rolling options, carrier leases c.5-10 years with rolling options Infrastructure deployment and project management capability Group scale and integrated platform Strong relationships with major carriers Strategic intent to co-invest in a long term ownership vehicle 1. Source: Industry Company Filings

10 9 Development: growth opportunities from Military Housing Redevelopment of existing portfolio Periodic redevelopments across all installations Island Palm Communities c.us$250 million (FY17 financial close) Privatized Army Lodging (PAL) c.us$500 million extension to initial development period (FY17 financial close) Significant surplus NOI estimated across portfolio life to fund future redevelopment Growth opportunity Exclusive partner with US Army on Lodging, well positioned to benefit from additional privatisation in the other services Opportunity to grow lodging portfolio across Airforce, Navy and Marines, which are not yet privatised Exploring potential opportunities in adjacent markets Island Palm Communities, Hawaii

11 10 Construction: successful business, sharpening focus $7.8 billion backlog revenue 1 San Francisco $0.5b Chicago $1.0b New York $4.1bn Boston/ Princeton $0.4b Los Angeles $0.7b Washington $0.5b Other $0.6b Strategic focus Maintain focus on six key markets Build out design and construct capabilities to achieve higher margins Diversification by sector and client Increased proportion of work from internal pipeline Financial and resource strength to undertake major projects 1. As at 30 June 2017

12 11 Construction: execution excellence For personal use onlystrong existing pipeline of high rise residential projects

13 12 Investments: Military Housing portfolio Across 25 States Homes total over 40,500 Hotel rooms total over 12,500 Established 1999 Over 50 installations across 25 states developed and/or financed Remaining portfolio life 39 years Asset Management, Property Management, Development Management, Construction Management for over 40,500 homes (housing) and 12,500 hotel rooms (lodging) Portfolio revenue of c.$1.4 billion in FY17 Surplus NOI is re-invested into new development work over the contract period, creating ongoing development pipeline

14 13 Outlook Leveraging the Lendlease Group Competitive advantage - track record, integrated model, balance sheet strength and capabilities Apply disciplined approach under the Portfolio Management Framework to drive future earnings growth and diversification Operating model that promotes best practice governance and risk management Repositioning the Americas for future success Strategic shift to become development led, in line with the Group strategy, and leverage our integrated model Consolidate and extend market leading Construction and Military Housing businesses Reposition Construction to target higher margins over time with greater diversity by client and sector Annuity earnings and growth opportunities in lodging and adjacent sectors Establish scale urbanisation platform in target gateway cities with focus on large scale, mixed use developments Demonstrate credentials in telecommunications infrastructure and leverage market opportunity Build out Investments segment potential new sectors including multifamily and telco infrastructure

15 Appendix

16 15 Riverline, Chicago $2.5 billion remaining estimated end development value Partnership with CMK Companies Secured in 2015, estimated completion FY26 3,750 residences Mix of condominium, townhouses and multifamily River Walk and public parks Current status 452 unit rental tower in delivery Artists impression: Riverline, Chicago

17 16 Clippership Wharf, Boston $0.4 billion remaining estimated end development value 100% ownership 12-acre waterfront location Two phase mixed use development Secured in 2015, estimated completion FY21 c.440,000 sqft of residential and amenity c.8,000 sqft of retail Current status 398 units in delivery for rent 80 units in one condominium building in delivery, 100% presold (including sales post 30 June 2017) Phase 1 estimated completion FY19 Artists impression: Clippership Wharf, Boston

18 Fifth Avenue, New York $0.7 billion remaining estimated end development value Joint venture (40%) with Victor Group Located on the south-east corner of Fifth Avenue & East 30th Street in the emerging residential neighbourhood, NoMad 130 residential units in one tower Retail at the base Construction commenced in 2017 Presales anticipated to be launched in H1 FY18 Estimated completion in FY19 Artists impression: 277 Fifth Avenue, New York

19 18 Construction track record New York Selection of completed projects and projects under construction

20 19 Construction track record Boston Selection of completed projects and projects under construction

21 20 Construction track record Chicago Selection of completed projects and projects under construction

22 21 Construction: Backlog Americas Backlog revenue ($b) Backlog revenue ($b) 5.8 (4.6) (0.1) FY13 FY14 FY15 FY16 FY17 FY16 New work secured Revenue realised Other FY17 Backlog revenue by client 1,2 Backlog revenue by sector 1,2 6% 20% Lendlease Government 7% 13% 2% Residential Defence Commercial 74% Corporate 78% Other 1. As at 30 June Includes all Construction projects greater than $100 million, which represents 78% ($6.1 billion) of secured backlog

23 22 Fundamental Drivers of Residential for Rent (Multifamily) Structure of US housing market annual by market Estimated population growth and household formation 2 CAGR (Estimate) 100% 80% 60% 40% 20% 0% 23% 28% 34% 33% 36% 43% USA Chicago San Francisco Boston Los Angeles New York Owner Occup SF Owner Occup MF Renter SF Renter MF SF = Single Family MF = multifamily 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Boston Chicago Los Angeles Population Growth New York Household Formation San Francisco US national asking rent 3 Median quarterly index, June 97= Jun-97 Jun-00 Jun-03 Jun-06 Jun-09 Jun-12 Jun-15 Multifamily investment volumes 4 (annual US$b) YTD 2Q17 NY Metro Chicago SF Metro LA Metro Boston 1. Source: US Census Bureau, Lendlease Research 2. Source: IHS Markit, Lendlease Research 3. Source: CEIC, US Census Bureau, Lendlease Research 4. Source: Real Capital Analytics, Lendlease Research

24 23 US telco towers Total market 250, , , ,000 50, f 2025 f Source: Industry Research Market structure 1 Market dominated by top three companies 000s American Crown Castle SBA Tower 1. US tower counts only Source: Industry Company Filings

25 24 Military Housing Average annual Investments EBITDA over FY14 FY17 of circa $50m 1 Invested equity position at FY17 $101.9m Portfolio structure SPV Income Housing allowance Interest Income Less SPV Expenses Opex Management fees Interest expense SPV NOI (surplus) Surplus to fund future redevelopment Equity Returns 1. Includes Asset Management and Property Management EBITDA and Returns on Invested Equity.

26 25 Important notice This document has been prepared and is issued by Lendlease Corporation Limited (ACN ) (Lendlease) in good faith. Neither Lendlease, nor any of its controlled entities including Lendlease Trust (together referred to as the Lendlease Group) makes any representation or warranty, express or implied, as to the accuracy, completeness, adequacy or reliability of any statements, estimates, opinions or other information contained in 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. A reference to FY17 refers to the full year period ended 30 June 2017 unless otherwise stated. All figures are in AUD and as at 30 June 2017 unless otherwise stated.