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1 27 February Half Year Results Lendlease Group Further to Lendlease Group s earlier announcement today, attached are the following documents: ASX Announcement Lendlease Group Financial Results Presentation and Appendix ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: Investors: Media: Justin McCarthy Natalie Campbell Tel: Tel: Mob: Mob: Lend Lease Corporation Limited ABN and Lend Lease Responsible Entity Limited ABN AFS Licence as responsible entity for Lend Lease Trust ABN ARSN Level 14, Tower Three, International Towers Sydney Telephone Exchange Place, 300 Barangaroo Avenue Facsimile Barangaroo NSW 2000 Australia lendlease.com

2 27 February 2017 Lendlease delivers double digit earnings growth, continued execution excellence 27 February 2017 For the half year ended 31 December : Profit after Tax of $394.8 million, up 12 per cent and earnings per stapled security of 67.8 cents, up 11 per cent Return on equity of 13.7 per cent 2, upper end of the per cent target range Interim unfranked distribution of 33 cents per stapled security Capital solutions secured across four office developments Total residential presales of $5.7 billion Engineering activity accelerating, on track for larger earnings contribution Funds Under Management (FUM) of $24.7 billion, up 12 per cent Strong balance sheet with gearing of 5.1 per cent 3 and available liquidity of $3.3 billion Lendlease Group Chief Executive Officer and Managing Director, Steve McCann, said Lendlease produced a strong result for the half year ended 31 December We had success in converting our pipeline into delivery with the forward sale of three office buildings, in addition to the creation of a capital solution for the Circular Quay Tower. Commercial development, in particular the Australian office sector, was a highlight of the first half result. At Barangaroo South, Tower 1 reached practical completion with all three office towers now operational, said Mr McCann. Lendlease now has a total of 13 major commercial buildings across the globe in delivery with a combined estimated end value of around $7 billion. These projects in delivery provide future secured FUM of around $3 billion. 1 Comparative period the half year ended 31 December 2015 (the prior corresponding period). 2 Return on equity is calculated on an annualised basis, using the half year profit after tax divided by the arithmetic average of beginning and half year end securityholders equity. 3 Net debt to total tangible assets less cash. 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

3 27 February 2017 We also have an estimated $9 billion of additional commercial development end value remaining in our secured pipeline. Importantly, the conversion of that pipeline will underpin future earnings across all three segments of our integrated model, said Mr McCann. Total residential pre-sales of $5.7 billion also provides good future earnings visibility. The Construction margin improved by 70 bps to 2.7 per cent and in conjunction with higher revenue generated a strong lift in Construction EBITDA. The Investments segment, representing 40 per cent of operating EBITDA, continues to deliver solid recurring style earnings. The Group maintains an unwavering commitment to safety. The Group achieved a 17 percent decline in the lost time injury frequency rate on the prior corresponding period 4. Group Financials Group Chief Financial Officer, Tarun Gupta said the double digit EBITDA growth in all three operating segments was a highlight for the half year and underpinned EBIT growth of 26 per cent. Financial returns were strong in the period with Development ROIC 5 of 12.7 per cent and Investments ROIC 5 of 13.4 per cent, both above their respective target range. Mr Gupta said the Group continued to maintain a conservative financial setting which provides the flexibility to continue to explore new pipeline opportunities in line with our strategy. At 31 December 2016, Lendlease held a cash balance of $1.0 billion and undrawn debt facilities of $2.3 billion, providing substantial financial flexibility. Gearing ended the period at 5.1 per cent 6, and the interest coverage ratio was 10.8 times. Outlook Mr McCann said, We remain well placed for future success given earnings visibility and a targeted and disciplined approach to delivering on our strategy. We have made further progress in implementing our integrated business model in target gateway cities. 4 Comparative period the half year ended 31 December 2015 (the prior corresponding period). 5 Return on Invested Capital (annualised measure). 6 Net debt to total tangible assets less cash. 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

4 27 February 2017 The Development pipeline of $49.0 billion will help drive earnings over an extended time horizon. Construction backlog revenue stands at $20.5 billion with further work of approximately $7 billion in preferred bidder status. The Investments platform has FUM of $24.7 billion with approximately $3 billion 7 of additional secured FUM across the Group s urbanisation projects in delivery. We have had substantial origination success post balance date. We have been recommended as preferred bidder 8 on the estimated GBP2 billion mixed use urbanisation project in Haringey, London, in addition to securing a number of significant construction contracts, said Mr McCann. These wins will contribute strongly to our continuing growth momentum. Further information regarding Lendlease s results is set out in the Group s financial results presentation for the half year ended 31 December 2016 and is available on ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: Investors: Media: Justin McCarthy Natalie Campbell Tel: Tel: Mob: Mob: Key Dates for Investors Interim distribution declared Securities quoted ex-dividend on the Australian Securities Exchange Interim distribution record date Interim distribution payable FY17 results released to market/final distribution declared Annual General Meeting 27 February 2 March 3 March 24 March 28 August 17 November 7 Represents secured future FUM increase from funds with development projects in delivery. 8 Remains subject to contractual close. 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

5 Lendlease 2017 Half Year Results 27 February 2017

6 2 Indigenous engagement and reconciliation Lendlease s vision for Reconciliation is one in which all our employees acknowledge and celebrate the proud heritage of Australia s First Peoples and promote opportunities for career development, sustainable business growth and economic participation of Aboriginal and Torres Strait Islander Australians within our sector

7 3 Contents Topic Speaker Slide Group Performance and Results Highlights Steve McCann Group Chief Executive Officer and Managing Director 4 Financials Tarun Gupta Group Chief Financial Officer 9 Operational Update Steve McCann Group Chief Executive Officer and Managing Director 15 Outlook Steve McCann Group Chief Executive Officer and Managing Director 19

8 Section 1 Group Performance and Results Highlights Steve McCann Group Chief Executive Officer and Managing Director Image: Barangaroo South, Sydney

9 5 Vision: to create the best places Strategic framework Business model Competitive advantage Pillars of value

10 HY17 Safety (1.95 in HY16) Lost Time Injury Frequency Rate in the last 6 months 1.20 (1.64 in HY16) Critical Incident Frequency Rate in the last 6 months

11 7 Double digit earnings growth, continued execution excellence Securityholder returns 1 Profit after Tax of $394.8 million, up 12%, and earnings per stapled security of 67.8 cents, up 11% Interim distribution of 33 cents per security, representing a dividend payout ratio of 49% Return on equity of 13.7% 2, at the upper end of our 10% 14% target range Performance highlights 1 Capital solutions secured across 4 office developments Total residential presales of $5.7 billion Construction margin up 70 bps to 2.7% Engineering activity accelerating, on track for larger earnings contribution Investments segment continues to deliver solid recurring style earnings, representing 40% of operating EBITDA Growth in Funds Under Management (FUM) of 12% to $24.7 billion Gearing of 5.1% 3 and liquidity of $3.3 billion, including cash and cash equivalents of $1.0 billion Operating and Investing cash flow of $243.0 million, 62% of Profit after Tax 1. Comparative period the half year ended 31 December 2015 (the prior corresponding period) 2. Return on equity is calculated on an annualised basis using the half year profit after tax divided by the arithmetic average of beginning and half year end securityholders equity 3. Net debt to total tangible assets less cash

12 8 Commercial success highlights resilience of business model Commercial completion profile 1 ( 000s sqm) Intl. House Sydney Office Darling Square Office Intl. Quarter Intl. Quarter London Office London Office No. 1 No. 2 Darling Square Hotel PLQ Office PLQ Office PLQ Office PLQ Retail Melb. Quarter No. 1 No. 2 No. 3 Office Victoria Harbour Office Brisbane Showgrounds Office Circular Quay Office H2 FY17 FY18 FY19 FY21 Competitive advantage generated by the integrated model critical to commercial development success Barangaroo South office T1 reached practical completion. All three towers now operational c.85,000 sqm of new commercial leasing 3 4 new buildings commenced delivery in HY17 representing an end value of c.$2.5 billion 2 13 major commercial buildings in delivery with total end value of c.$7 billion 4 or 414,000 sqm Buildings in delivery to provide additional secured FUM of c.$3 billion 5 Further $9.2 billion or 762,000 sqm of commercial development already secured in remaining development pipeline 1. Based on expected completion date of major commercial projects only, subject to change in delivery program. Not indicative of cash or profit recognition 2. Circular Quay Tower construction start remains subject to certain preconditions 3. Includes Agreements for Lease and Heads of Terms 4. Remaining end value to be delivered as at 31 December 2016 of $5.7 billion 5. Represents secured future FUM increase from funds with development projects in delivery

13 Section 2 Financials Tarun Gupta Group Chief Financial Officer Image: 432 Park Avenue, New York

14 10 Financial performance $ million HY16 HY17 Change Development % Construction % Investments % Strong Australian commercial result, investing in offshore regions Rebound in the Americas margin, Engineering activity increasing Both ownership and operating earnings growth Operating EBITDA % Corporate costs (84.5) (79.2) (6%) HY17 comprises Group Services costs of $69.1 million 1, down 4.0% Group EBITDA % Depreciation and amortisation (40.8) (47.8) 17% Higher amortisation on investment in systems EBIT % Net finance costs (45.7) (49.6) 9% Lower interest revenue in HY17 given discount unwind benefit in HY16 2 PBT % Income tax expense (71.9) (147.7) 105% Effective tax rate of 27.2%, up 10.3 percentage points External non-controlling interests n/a NPAT % Weighted avg. securities EPS cents % 1. Remaining HY17 corporate costs represent Group Treasury of $10.1 million 2. Relates to the Military Housing Privatisation Initiative business

15 11 Cash flow movements ($b) 1 Denotes major movements Barangaroo Commercial +$0.8b, other Urbanisation +$0.4b, PLLACes +$0.2b, Communities +$0.3b Urbanisation ($1.4b), Communities ($0.3b), other operating payments ($0.2b) 1.8 (1.9) Equity contribution to LLOneITST 3 ($0.1b), Retirement properties ($0.1b) 0.6 (0.3) Net repayment of GBP Club Revolving Credit Facility ($0.2b) (0.2) 4 Circular Quay Tower +$0.3b, NZ 1.0 Retirement disposal 2 +$0.2b 1.0 FY16 closing cash Operating inflow Operating outflow Investing inflow Investing outflow Net financing and other adjustments HY17 closing cash 1. Represents an indicative analysis of operating cash inflows and outflows. Note, operating cash inflows and outflows relating to Construction have been included as a net position in the above chart 2. Late in FY16, the Group divested the New Zealand Retirement business, with proceeds subsequently received in HY17 3. Lendlease One International Towers Sydney Trust (Barangaroo South T1) 4. Includes the impact of fx movements on opening cash

16 12 Financial position $ million 31 Dec Jun Dec 16 Assets Cash and cash equivalents , ,020.8 Inventories 4, , ,963.6 Equity accounted investments 1, , Investment properties 1 6, , ,439.5 Other assets (including financial) 6, , ,738.6 Total assets 19, , ,906.5 Key areas of capital employed Development inventories of $4.1 billion Investments of $3.3 billion including: Co-Investments of $1.5 billion Retirement Ownership of $1.7 billion Infrastructure of $0.1 billion Liabilities Borrowings and financing arrangements 2, , ,844.9 Other liabilities (including financial) 1 11, , ,114.4 Total liabilities 13, , ,959.3 Net assets 5, , ,947.2 Gearing % 6.5% 5.1% Funding and liquidity $1.0 billion of cash and $2.3 billion in undrawn debt facilities Interest coverage of 10.8 times Gearing of 5.1% 2 Prudent debt maturity profile, no material concentrations 1. Investment properties includes retirement properties of $6,236.6 million. Other liabilities includes retirement resident liabilities of $4,444.1 million 2. Net debt to total tangible assets less cash

17 13 Portfolio Management Framework EBITDA mix Invested capital By segment By region 9% 6% 40% 36% $718.8m 1 $6.0b 2 53% 47% 8% $6.4b 3 Target weighting Returns 24% Development Construction Investments Development Investments (35 45%) (20 30%) (30 40%) (40 60%) (40 60%) 77% Australia Asia Europe Americas (50 70%) (5 20%) (5 20%) (5 20%) Development ROIC 4 Investments ROIC 4 Construction EBITDA margin Target 9 12% % 12.7% Target 3 4% Target 8 11% % 12.2% 2.0% 2.7% HY16 HY17 HY16 HY17 HY16 HY17 1. Operating EBITDA 2. Invested capital for Development and Investments. Total Lendlease invested capital as at 31 December 2016 was $6.8 billion 3. Invested capital for Australia, Asia, Europe and the Americas. Total Lendlease invested capital as at 31 December 2016 was $6.8 billion ($0.4 billion, Corporate) 4. Return on Invested Capital (ROIC) definition: Operating Profit after Tax / Average Invested Capital (Annualised measure) 5. Through-cycle target based on rolling 3-5 year timeline

18 14 Portfolio Management Framework Return on equity (ROE) % 13.6% 18.2% 2 Target 10 14% 12.4% 13.0% 13.7% FY12 FY13 FY14 FY15 FY16 HY17 3 cents Distributions Target 40 60% FY12 FY13 FY14 FY15 FY16 HY17 70% 60% 50% 40% 30% 20% 10% Gearing 4 Interim distribution (LHS) Payout ratio (RHS) Final distribution (LHS) 5.5% 5.4% 5.7% 10.5% 6.5% Target 10 15% 5.1% FY12 FY13 FY14 FY15 FY16 HY17 1. Full year ROE is calculated using the annual profit after tax divided by the arithmetic average of beginning, half and year end securityholders equity 2. FY14 includes Bluewater sale 3. Half year ROE is calculated on an annualised basis, using the half year profit after tax divided by the arithmetic average of beginning and half year end securityholders equity 4. Net debt to total tangible assets less cash

19 Section 3 Operational Update Steve McCann Group Chief Executive Officer and Managing Director Artist impression: Paya Lebar Quarter, Singapore

20 16 Development 36% Performance highlights 1 ROIC of 12.7% 2 above our target range Forward sale of 3 office buildings Capital solution secured for Circular Quay Tower Barangaroo South T1 reached practical completion. All three towers now operational Barangaroo South T1 > 70% let 3 and International House 100% let 3 Commercial development in delivery with combined end value of c.$7 billion Residential settlements of 2,037 units: Communities 1,338 units Apartments 628 units 4. Default rate < 1.0% Residential presales of $5.7 billion c.950 apartment units in delivery in the US Commercial building completion profile 5 ($b) By estimated total end value International House Sydney H2 FY17 FY18 FY19 FY20 FY21 Residential presales 7 ($b) International Quarter London and Darling Square Office and Hotel Paya Lebar Quarter Office and Retail, Brisbane Showgrounds, Melbourne Quarter and Victoria Harbour Aus Communities Aus Apartments Europe Apartments (0.7) 0.6 (0.1) HY16 FY16 Settlements Sales Other HY17 of operating EBITDA Circular Quay Tower Comparative period the half year ended 31 December 2015 (the prior corresponding period) 2. Half year returns have been annualised 3. Including agreed Heads of Terms 4. Profit recognised on practical completion 5. Based on expected completion date of underlying buildings, subject to change in delivery program. Not indicative of cash or profit recognition 6. Circular Quay Tower construction start remains subject to certain preconditions 7. Excludes retirement and Americas development. Includes 100% of revenue from joint venture projects 8. Includes fx impact

21 17 Construction 24% of operating Performance highlights 1 Global EBITDA margin up 70 bps to 2.7%, continuing an upward trend towards the Group s target range of 3 4% Earnings for Australia broadly in line with the prior corresponding period, with increased Engineering activity offset by softer Building margins Execution excellence with the completion of 4 major Building projects in excess of c.$4 billion Increased Engineering activity driven by North Connex M1/M2 Tunnel, Gateway Upgrade North and Caulfield to Dandenong Level Crossing Removal Americas margin boosted by successful project close outs Asia and Europe impacted by challenging market conditions, however continue to be supported by internal pipeline Backlog revenue of $20.5 billion diversified across multiple sectors and clients New work secured of $6.3 billion with an increased contribution from Asia and the Americas c.$7 billion of further work in preferred bidder status EBITDA ($m) HY16 0 (1) (3) (6.3) 20.7 (0.2) 20.5 HY16 FY16 New work secured HY17 Revenue realised Other 117 EBITDA Australia Asia Europe Americas Total EBITDA Margin (%) Backlog ($b) 170 HY16 3.6% 0.1% (0.4%) 0.7% 2.0% HY17 3.0% (0.5%) 0.6% 3.2% 2.7% 3 HY17 1. Comparative period the half year ended 31 December 2015 (the prior corresponding period) 2. Values have been rounded down to the nearest million 3. Includes fx

22 18 Investments 40% of operating Performance highlights 1 ROIC of 13.4% 2, above our target range, driven by improved performance in Australia and Asia Australian result supported by a strong Retirement result with an average 8.6% uplift in unit pricing on resales. We continue to explore the introduction of capital partners over the medium term Higher investment income, including co-investment in Lendlease International Towers Sydney Trust Restoration of profitability in Asia driven by solid investment income contribution Strong uplift in operating earnings driven by higher FUM and military housing fee income FUM of $24.7 billion, up 12% on the prior corresponding period with c.$3 billion 3 of additional secured FUM across the Group s urbanisation projects New equity raised of $0.8 billion mainly attributable to the Circular Quay Tower development Investments EBITDA by activity ($m) Ownership interest FUM ($b) 23.6 HY HY (0.1) Operating earnings (0.3) EBITDA 24.7 HY16 FY16 Acquired Divested Net revals Other HY Comparative period the half year ended 31 December 2015 (the prior corresponding period) 2. Half year returns have been annualised 3. Represents secured future FUM increase from funds with development projects in delivery 4. Includes fx

23 Section 4 Outlook Steve McCann Group Chief Executive Officer and Managing Director Artist impression: International Quarter London

24 20 Outlook We are well placed for future success given: Earnings visibility from the growing pipeline across our business segments Competitive advantage via integrated capabilities across the property and infrastructure value chain Resilient business model with diversity across segments, sectors and geographies Financial strength low gearing, high levels of liquidity and access to third party capital Significant origination success post balance sheet date: Recommended preferred bidder on Haringey urbanisation project, London c.gbp2.0 billion development end value 1 Progress made on entry into US telco infrastructure A number of significant construction contracts including Javits Convention Centre in New York 1 Focussed on execution excellence through: Strong risk management framework to manage individual projects, property cycles and sovereign risk Unwavering commitment to health, safety and sustainability Disciplined approach to origination 1. Remains subject to contractual close

25 FY12 FY13 FY14 FY15 FY16 HY17 FY12 FY13 FY14 FY15 FY16 HY17 FY12 FY13 FY14 FY15 FY16 HY17 21 Earnings visibility from strong pipeline across all segments Development pipeline of $49.0 billion Construction backlog revenue of $20.5 billion FUM of $24.7 billion 60 Development pipeline ($b) 22 Construction backlog revenue ($b) 25 Funds under management ($b)

26 Section 5 Q&A Steve McCann Group Chief Executive Officer and Managing Director Tarun Gupta Group Chief Financial Officer Dan Labbad Chief Executive Officer, International Operations Image: Fulton Street Transit, New York

27 Appendices Artist impression: The Darling Exchange, Sydney

28 2 Group

29 3 Our business model Our business model is how we generate earnings. The model is integrated when more than one segment is engaged on a single project DEVELOPMENT The Development segment is involved in the development of communities, inner city mixed use developments, apartments, retirement, retail, commercial assets and social and economic infrastructure Core Financial Returns: Development margins Development management fees received from external co-investors Origination fees for infrastructure PPPs CONSTRUCTION The Construction segment provides a project management, design, and construction service, predominantly in the infrastructure, defence, mixed use, commercial and residential sectors Core Financial Returns: Project management and construction management fees Construction margin INVESTMENTS The Investments segment includes a leading wholesale investment management platform and also includes the Group s ownership interests in property and infrastructure co-investments, Retirement and US Military Housing Core Financial Returns: Fund, asset and property management fees Investment yields and capital growth on coinvestments, and returns from the Group s Retirement portfolio and US Military Housing business

30 4 Income Statement Income Statement ($m) Dec-15 Dec-16 Revenue 7, ,945.3 Cost of sales (6,522.7) (7,077.3) Gross profit Other income Other expenses (552.6) (458.9) Results from operating activities Finance revenue Finance costs (60.5) (55.1) Net finance costs (45.7) (49.6) Share of profit of equity accounted investments Profit before Tax Income tax expense (71.9) (147.7) Profit after Tax Profit after Tax attributable to: Members of Lendlease Corporation Limited Unitholders of Lendlease Trust Profit after Tax attributable to securityholders External non controlling interests (0.2) (0.3) Profit after Tax Basic/Diluted EPS per Lendlease Group Stapled Security (cents)

31 5 Statement of Financial Position Statement of Financial Position ($m) Dec-15 Jun-16 Dec-16 Current Assets Cash and cash equivalents , ,020.8 Loans and receivables 3, , ,057.4 Inventories 2, , ,488.2 Current tax assets Other financial assets Other assets Total current assets 5, , ,725.4 Non Current Assets Loans and receivables Inventories 2, , ,475.4 Equity accounted investments 1, , Investment properties 6, , ,439.5 Other financial assets ,230.4 Deferred tax assets Property, plant and equipment Intangible assets 1, , ,433.7 Defined benefit plan asset Other assets Total non current assets 13, , ,181.1 Total assets 19, , ,906.5 Statement of Financial Position ($m) Dec-15 Jun-16 Dec-16 Current Liabilities Trade and other payables 4, , ,353.5 Resident liabilities 4, , ,444.1 Provisions Borrowings and financing arrangements Current tax liabilities Other financial liabilities Total current liabilities 9, , ,479.2 Non Current Liabilities Trade and other payables 1, , ,702.9 Provisions Borrowings and financing arrangements 2, , ,547.1 Defined benefit plan liability Other financial liabilities Deferred tax liabilities Total non current liabilities 4, , ,480.1 Total liabilities 13, , ,959.3 Net assets 5, , ,947.2 Equity Issued capital 1, , ,283.9 Treasury shares (95.4) (99.5) (43.7) Reserves Lendlease Trust Retained earnings 3, , ,552.3 Total equity attributable to equity holders of Lendlease Corporation Limited 4, , ,858.4 Total equity attributable to unitholders of LLT 1 1, , ,087.4 Total equity attributable to securityholders 5, , ,945.8 External non controlling interests Total equity 5, , ,947.2

32 6 Statement of Cash Flows Statement of Cash Flows ($m) Dec-15 Dec-16 Cash Flows from Operating Activities Cash receipts in the course of operations 8, ,561.0 Cash payments in the course of operations (7,826.5) (8,515.1) Interest received Interest paid (87.5) (77.2) Dividends/distributions received Income tax received/(paid) in respect of operations 1.8 (77.4) Net cash provided by/(used in) operating activities (70.4) Cash Flows from Investing Activities Sale/redemption of investments Acquisition of investments (323.9) (155.7) Acquisition of/capital expenditure on investment properties (7.1) (58.9) Net loans to associates and joint ventures (51.5) 6.0 Disposal of consolidated entities (net of cash disposed and transaction costs) Disposal of property, plant and equipment Acquisition of property, plant and equipment (47.2) (66.4) Net acquisition / disposal of intangible assets (25.5) (3.6) Net cash provided by/(used in) investing activities (369.5) Cash Flows from Financing Activities Proceeds from borrowings 1, ,624.3 Repayment of borrowings (1,847.4) (1,802.7) Dividends/distributions paid (139.9) (157.7) Proceeds from the sale of treasury securities Other financing activities (4.8) (9.9) Net cash used in financing activities (13.6) (239.5) Other Cash Flow Items Effect of foreign exchange rate movements on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents (180.1) 12.4 Cash and cash equivalents at beginning of financial year ,008.4 Cash and cash equivalents at end of financial year ,020.8

33 7 Securityholder returns Return on equity (ROE) % 2 Distributions cents 80 70% 13.5% 13.6% 13.0% 12.4% 13.7% FY12 FY13 FY14 FY15 FY16 HY % 50% % % % 10% FY12 FY13 FY14 FY15 FY16 HY17 Interim distribution (LHS) Final distribution (LHS) Payout ratio (RHS) 1. Full year ROE is calculated using the annual profit after tax divided by the arithmetic average of beginning, half and year end securityholders equity 2. FY14 includes Bluewater sale 3. Half year ROE is calculated on an annualised basis, using the half year profit after tax divided by the arithmetic average of beginning and half year end securityholders equity

34 8 Segment financial metrics Operating Profit after Tax ($m) EBITDA ($m) HY16 HY17 HY16 HY Development Investments Construction ROIC 1,2 (Development and Investments), EBITDA margin (Construction) 12.7% ROIC 12.2% HY % HY17 EBITDA margin 2.0% 2.7% Development Investments Construction Invested Capital 3 (Development and Investments) ($b) HY16 HY % Development Investments Construction Development Investments 1. Return on Invested Capital (ROIC) definition: Operating Profit after Tax / Average Invested Capital (Annualised measure) 2. ROIC has been calculated on an annualised basis 3. Total Lendlease Invested Capital at 31 December 2016 was $6.8 billion. Development, Investments and Construction Invested Capital totalled $6.4 billion, with remaining Invested Capital representing Corporate ($0.4 billion)

35 9 Segment and region financial metrics By segment Revenue ($m) EBITDA ($m) Profit After Tax ($m) Invested Capital ($b) HY16 HY17 HY16 HY17 HY16 HY17 HY16 FY16 HY17 Development 1,115 1, Investments Construction 5,961 6, Corporate 7 9 (84) (78) 1 (110) (109) Group 7,355 7, By region Revenue ($m) EBITDA ($m) Profit After Tax ($m) Invested Capital ($b) HY16 HY17 HY16 HY17 HY16 HY17 HY16 FY16 HY17 Australia 4,140 4, Asia (32) 8 (28) Europe Americas 2,267 2, Corporate 7 9 (84) (78) 1 (110) (109) Group 7,355 7, Rounded down to the nearest million

36 Operating EBITDA 10 Recurring income 100% 90% 80% 70% 60% 69% 58% 63% 60% Targeting 60% - 70% of earnings from residential, commercial, infrastructure and retail development activities and from construction / services margin 50% 40% 30% 20% 10% 31% 42% 37% 40% Targeting 30% - 40% of earnings from the Investments segment delivering recurring income 0% FY14 FY15 FY16 HY17 Investments income Other Group earnings

37 11 Revenue and EBITDA by segment and geography ($m) Revenue EBITDA HY16 HY17 HY16 HY17 Development Australia 1, , Asia (13.3) (7.2) Europe Americas (7.6) (29.0) Total Development 1, , Construction Australia 2, , Asia (1.4) Europe (2.8) 3.9 Americas 2, , Total Construction 5, , Investments Australia Asia (18.5) 16.9 Europe Americas Total Investments Total Operating Australia 4, , Asia (31.6) 8.3 Europe Americas 2, , Group Total Operating 7, , EBITDA by segment ($m) 800 HY16 HY Development Construction Investments Total EBITDA by geography ($m) 800 HY16 HY (100) Australia Asia Europe Americas Total

38 12 Revenue and EBITDA by segment and geography, local currency Europe EBITDA, local currency (m) Local currency Revenue EBITDA HY16 HY17 HY16 HY17 Europe, GBPm HY16 HY17 Development Construction (1.3) 2.3 Investments Total operating Americas (5) Development Construction Investments Total Local currency Revenue EBITDA HY16 HY17 HY16 HY17 55 HY16 HY17 Americas, USDm Development (5.5) (21.8) Construction 1, , Investments Total operating 1, , Asia Local currency Revenue EBITDA HY16 HY17 HY16 HY17 Asia, SGDm Development (13.4) (7.5) Construction (1.5) Investments (18.7) 17.6 Total operating (31.9) 8.6 (5) (25) (10) (30) (50) Development Construction Investments Total HY16 HY17 Development Construction Investments Total

39 13 Exchange rates Income Statement Local Foreign HY16 1 FY16 2 HY17 3 AUD USD AUD GBP AUD SGD Statement of Financial Position Local Foreign HY16 4 FY16 5 HY17 6 AUD USD AUD GBP AUD SGD Average foreign exchange rate for the half year Average foreign exchange rate for the full year Average foreign exchange rate for the half year At spot foreign exchange rate 31 December At spot foreign exchange rate 30 June At spot foreign exchange rate 31 December 2016

40 14 Regional EBITDA to PAT reconciliation HY17 EBITDA to PAT Reconciliation Region EBITDA Net Interest D&A 1 PBT Tax Non Cont. Int. 2 PAT Australia Development (0.6) (86.7) Construction (12.8) 85.5 (22.6) Investments (3.7) (55.8) Total Australia (17.1) (165.1) Asia Development (7.2) (0.1) (0.4) (7.7) (6.4) Construction (1.4) - (0.5) (1.9) (1.6) Investments (3.4) Total Asia 8.3 (0.1) (0.9) 7.3 (2.1) Europe Development (1.4) 4.9 (3.1) Construction 3.9 (0.4) (0.5) Investments (0.8) Total Europe 11.4 (0.4) (1.9) 9.1 (3.3) Americas Development (29.0) - (0.1) (29.1) (17.3) Construction (2.3) 67.5 (25.2) Investments (9.9) Total Americas (2.4) 65.1 (23.3) Corporate Group Services (69.1) (0.1) (25.5) (94.7) (68.9) Group Treasury (10.1) (50.6) - (60.7) (40.4) Total Corporate (79.2) (50.7) (25.5) (155.4) (109.3) Total (49.6) (47.8) (147.7) Depreciation and Amortisation 2. Non Controlling Interests

41 15 Debt metrics Dec-15 Jun-16 Dec-16 Net debt $ million 2,063 1, Borrowings to total equity plus borrowings % Net debt to total tangible assets, less cash % Interest coverage 1 times Average cost of debt including margins % Average debt duration years Debt mix fixed : floating ratio 54 : : : 0 Undrawn debt facilities $ million 1,424 2,173 2, EBITDA plus interest income, divided by interest finance costs, including capitalised finance costs

42 16 Debt facilities and maturity profile Debt facilities ($m) 1 1,500 Drawn Facility Syndicated Multi- Option Facility UK Bond Issue Club Revolving Credit Facility US $ Reg. S Notes US Private Placement Singapore Bond Australian Medium Term Notes Debt maturity profile ($m) FY17 FY18 FY19 FY20 FY21 FY22 FY26 Syndicated Multi-Option Facility UK Bond Issue Club Revolving Credit Facility Australian Medium Term Notes US Private Placement Singapore Bond US $ Reg. S Notes Undrawn 1. Values are shown at amortised cost 2. Values are shown at gross facility value

43 17 Key dates for investors Date HY17 results released to market / interim distribution declared 27 February 2017 Securities quoted ex-dividend on the Australian Securities Exchange 2 March 2017 Interim distribution record date 3 March 2017 Interim distribution payable 24 March 2017 FY17 results released to market / final distribution declared 28 August 2017 Annual General Meeting 17 November 2017

44 18 Development

45 19 Development HY17 Overview Involved in the development of communities, inner city mixed use developments, apartments, retirement, retail, commercial assets and social and economic infrastructure Financial returns are generated via Development margins, Development management fees from external co-investors and origination fees for the facilitation of infrastructure PPP transactions Drivers Forward sale of 839 Collins St, Victoria Harbour: - 38,000 sqm office - End development value $ million, est completion FY19 Forward sale of One Melbourne Quarter: - 26,000 sqm office - End development value $ million, est completion FY19 - LLC indirect ownership via holding in APPF Commercial Capital solution secured for Circular Quay Tower 1 subject to preconditions: - c.55,000 sqm office - End development value $ billion, est completion FY21 - LLC 20% co-investment Barangaroo South T1 T3 profit release on converting to operational phase 3,500 sqm of additional leasing at Barangaroo South T1 (AFL) 2 Residential settlements of 2,037 units, down 8.6%: - Communities settlements of 1,338 units, down 8.7% - Retirement settlements of 71, down from Apartment settlements of 628 units, down 5.1% Performance HY16 HY17 % Operating EBITDA ROIC (%) Invested Capital ($b) Outlook Residential presales of 8,864 units, $5.7 billion: - Record Communities presales of 3,351 units, $844 million - Apartment presales of 5,513 units, $4,829 million Barangaroo South leasing HoTs 3 on 23,800 sqm at T1 that will take occupancy to c.75% and 6,700 sqm at International House, 100% of building PLQ 42,000 sqft retail leasing secured. Retail and 3 office towers due FY19 Forward sale of 5 King St, Brisbane: 15,000 sqm office, end development value $ million, est completion FY19 US residential development execution underway c.950 apartments in delivery, 736 of which are residential for rent Future pipeline secured post balance sheet date: - Haringey urbanisation project, London GBP2.0 billion estimated end value 4 - Entry into US telco development Total pipeline $49.0 billion, including c.$35 billion in urbanisation, of which c.$25 billion remains yet to be put into delivery 1. $66.2 million gain on sale, $16.7 million revaluation gain on retained equity 2. Agreement for Lease 3. Heads of Terms 4. Remains subject to contractual close

46 20 Development earnings / pipeline EBITDA by geography ($m) Development pipeline by geography ($b) HY16 HY17 HY16 HY (13.3) (7.2) (7.6)(29.0) Australia Asia Europe Americas Total Australia Asia Europe Americas Total Urbanisation pipeline by geography HY17 ($b) Historical development pipeline ($b) Urbanisation Pipeline Communities Pipeline $35.0b 16.9 Australia Asia Europe Americas FY12 FY13 FY14 FY15 FY16 HY17

47 21 Residential development Communities and Retirement (settlements by state) 1 HY16 HY17 Units $m Units $m Communities QLD NSW VIC SA WA Retirement Australia Total 1, , Communities and Retirement (sales by state) HY16 HY17 Units $m Units $m Communities QLD NSW VIC SA WA Retirement Australia Total 2, , HY17 Apartment settlements 3 Units $m Australia Victoria Harbour 888 Collins Other Total Europe IQL 4 Glasshouse Gardens E&C 5 South Gardens Other 1 1 Total Total settlements Retirement metrics reflect sales / settlements in the development business and not resales in investment portfolio 2. NSW includes the Australian Capital Territory 3. As at 24 February 2017, 86% total apartment settlements across Australia and Europe were cash settled. Profit recognised on practical completion 4. International Quarter London 5. Elephant & Castle 6. Affordable apartments

48 22 Apartment and Communities presales 1 Apartments presales By units $m 5,392 1,797 5,914 1, (452) (176) Australia 5,513 1,542 Europe 4,732 1,667 5,247 1, (211) (298) (108) 4,829 1,148 3,595 4,279 3,971 3,065 3,874 3,681 HY16 FY16 Sales Settlements HY17 HY16 FY16 Sales Impact of fxsettlements HY17 Communities presales By units $m 1,895 (1,338) 439 (292) 2,732 2,794 3, HY16 FY16 Sales Settlements HY17 HY16 FY16 Sales Settlements HY17 1. Excludes retirement and Americas development and includes 100% of revenue from joint venture projects

49 23 Apartment presales by location and customer Presales in delivery (by value, as at 31 December 2016) 1 Run-off profile by location 2 By customer 44% 30% H2 FY17 FY18 FY19 23% Other offshore 31% 4% 10% 5% 14% 11% 6% 7% 20% 3% 10% 21% China 56% Local 0% 0% Sydney Brisbane Melbourne London 1. Apartment projects in delivery reflecting total presales of $4.3 billion, including 100% of revenue from joint venture projects 2. Based on expected completion date of underlying buildings, subject to change in delivery program

50 24 Development pipeline provides long term earnings visibility 1 Record secured pipeline of $49.0b controlled by invested capital of $2.8b Apartments 20 major apartment buildings presold and in delivery, estimated completion FY17 FY19 Estimated annual turnover 5 4,570 units presold 2 19,405 units remaining 23,975 units ~1,000-2,000 settlements $4.3 billion presold 2 $15.8 billion remaining $20.1 billion Commercial 13 major buildings in delivery, estimated completion FY17 FY21 414,000 sqm in delivery 762,000 sqm remaining 1,176,000 sqm ~2-3 buildings commenced $5.7 billion in delivery 3 $9.2 billion remaining $14.9 billion Communities and Retirement 3,351 lots presold 54,511 lots remaining 4 57,862 lots 3 ~3,500-4,500 settlements $0.8 billion presold $13.2 billion remaining $14.0 billion 1. All data as at 31 December Represents presales balance on buildings in delivery only 3. Total end value of c.$7.0 billion, with c.$1.3 billion delivered to date 4. Includes built-form units to be sold with land lots 5. Subject to market conditions $49.0 billion Total pipeline end value

51 25 Major project summary Project Project secured Delivery commenced Expected completion date 1 Residential units backlog Commercial sqm backlog 000s Total remaining end value $b 2 Barangaroo South, Sydney Darling Square, Sydney , Victoria Harbour, Melbourne , Melbourne Quarter, Melbourne , Brisbane Showgrounds, Brisbane , Waterbank, Perth , Tun Razak Exchange, Kuala Lumpur , Paya Lebar Quarter, Singapore Elephant and Castle, London , International Quarter, London The Wharves, Deptford, London , Riverline, Chicago , Other Urbanisation Projects 3 3, Total Urbanisation 23,975 1, Based on expected completion date of underlying buildings, subject to change in delivery program 2. Reflects the remaining estimated total project end development value. Values for any project can vary and are subject to change 3. Includes Toorak Park, Clippership and Circular Quay Tower

52 26 Apartment projects in delivery settlement profile 3 Project Building Total Units Presold (%) Presales 1 ($m) Australia Wirth House, St Leon and Darling One % ~585 Darling Square Darling North, Harbour Place and Trinity House % ~810 Darling Rise, Barker House and Arena % ~ Collins % ~360 Victoria Harbour 883 Collins % ~350 Collins Wharf % ~245 Brisbane Showgrounds North Yard and South Yard % ~210 Toorak Park Park, East, North and Terrace Homes % ~390 Total Australia 3,761 ~3,440 Europe Elephant and Castle South Gardens % ~220 West Grove (Buildings 1 and 2) % ~420 International Quarter London 4 Glasshouse Gardens (Buildings 1 and 2) % ~175 Wandsworth Victoria Drive % ~40 Total Europe 1,221 ~855 Sub-total 4,982 ~4,295 Americas 5th Avenue th Avenue Clippership Buildings 1 and Building Riverline 7 Building D Total Americas Total 5,928 ~4,295 = Indicates expected timing of building completion and profit recognition Delivery 2 H2 FY17 FY18 FY19 1. Closing presales balance as at 31 December Based on expected completion date of underlying buildings, subject to change in delivery program 3. Excludes settlements recognised in HY17 4. Lendlease ownership interest 50% 5. Lendlease ownership interest 40% 6. Residential rental product 7. Lendlease ownership interest 60%

53 27 Major commercial development pipeline Commercial building completion profile 1 Project Capital model sqm ('000) Building H2 FY17 2 FY18 FY19 FY20 FY21 International Quarter London Fund through 3 73 Office (2 buildings) Paya Lebar Quarter Joint venture 93 Office (3 buildings) 44 Retail Darling Square Fund through 3 37 Hotel 26 Office Barangaroo South Fund through 3 7 International House Sydney Melbourne Quarter Fund through 3 26 One Melbourne Quarter Victoria Harbour Fund through 3 38 Office Circular Quay Tower 4 Fund through 3 55 Office Brisbane Showgrounds Fund through 3 15 Office Total 414 = Indicates expected building completion date subject to change in delivery program Indicative conversion timing of secured commercial pipeline to FY21 (sqm 000) 5 Project # Buildings Sector sqm ('000) H2 FY17 FY18 FY19 FY20 FY21 Melbourne Quarter 2 Office 97 Brisbane Showgrounds 2 Office 35 International Quarter London 6 Office 196 Tun Razak Exchange 6 1 Retail 204 Total Not indicative of cash or profit recognition. Based on expected completion date of underlying buildings, subject to change in delivery program 2. Excludes buildings completed in HY17 3. A funding model structured through a forward sale to a capital partner resulting in staged payments prior to building completion Targeting 2-3 building commencements p.a. 4. Circular Quay Tower construction start remains subject to certain preconditions 5. Indicative project execution timing, subject to tenant pre-commitment, planning and other conditions 6. Subject to unconditional contract close

54 28 Communities and Retirement projects Communities Residential Commercial Include Horizon in this. Estimated Backlog Backlog Backlog Project Location Ownership Interest Completion Built-Form Date 1 Land Units 2 sqm / 000s Units 2 3 Bingara Gorge NSW Land management , Calderwood Valley NSW Land management , St Marys Jordan Springs NSW Owned , The New Rouse Hill NSW Land management Fernbrooke Ridge QLD Land management Elliot Springs (formerly Rocky Springs) QLD Land management ,675-1,037 Springfield Lakes QLD Land Management , Yarrabilba QLD Staged acquisition ,255 1,190 2,097 Blakes Crossing SA Staged acquisition Atherstone VIC Land management , Aurora VIC Owned , Harpley VIC Land management , Mayfield VIC Owned Alkimos WA Land management , The Assembly at Coolbellup WA Land management Horizon Uptown Americas Owned , Sub-total 51,065 1,970 4,783 Retirement - 4,827 - Total 51,065 6,797 4, Estimated completion date represents the expected financial year in which the last unit will be settled as at 31 December 2016, subject to change 2. Represents estimated backlog and 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. Represents the 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

55 29 Development deal structuring tailored to local market Communities / Retirement Apartments (Australia, Europe) Urbanisation Commercial Forward Sale JV Structure / LP-GP 1 Project examples Jordan Springs, Sydney Yarrabilba, Brisbane Darling Square, Sydney Elephant & Castle, London Barangaroo (ITS), Sydney Phase 1 International Quarter, London Paya Lebar Quarter, Singapore Phase 1 Riverline, Chicago Land ownership Land funding 2 Land management Staged payments Land management Staged payments Land management Staged payments Land ownership via JV (including project financing) Production 100% on-balance funding 2 sheet Largely 100% on-balance sheet Capital partner progress or staged payments Funded via JV (including project financing) P&L returns Development profit on settlement Construction margin on infrastructure delivery Development profit on practical completion Construction margin on practical completion 3 Development profit typically upfront at time of sale Development management fees, Construction margin 4 and Investment Management fees 4 during delivery Development profit tied to equity interests Development management fees, Construction margin 4 and Investment Management fees 4 (including performance fees) during delivery Cash returns (Development only) On settlement On settlement Over life of project during delivery Linked to cash equity returns or sell down of investment typically post practical completion 1. Limited Partnership / General Partnership 2. Reflects typical funding models used across segment examples 3. Based on apartment projects delivered 100% on-balance sheet 4. Only where Construction and / or Investments segments are engaged to play a role in the project

56 30 Construction

57 31 Construction HY17 Overview Provides a project management, design, and construction service, predominantly in the infrastructure, defence, mixed-use, commercial and residential sectors Financial returns are generated via project management and construction management fees, in addition to construction margin Drivers Australia - Earnings broadly in line with prior corresponding period due to increased Engineering activity offset by softer Building margins - Execution excellence with the completion of 4 major Building projects in excess of c.$4 billion - Engineering contributors included NorthConnex M1/M2 Tunnel, Gateway Upgrade North and Caulfield to Dandenong Level Crossing Removal Asia - Breakeven result as construction works ramp up on Paya Lebar Quarter, Singapore Europe - Internal pipeline continues to support the business - Region has avoided bidding in highly competitive markets in recent years Americas - Successful close out on a number of projects positively impacted overall result Performance HY16 HY17 % Operating EBITDA EBITDA margin (%) New Work Secured ($b) Backlog Revenue ($b) Outlook Trajectory towards target margin of 3 4% Diversity by region, client and sector c.$7 billion of further work in preferred bidder status Australia - New work secured of $2.8 billion including Sunshine Plaza Redevelopment and Western Sydney Stadium - Pursuing a number of large transport projects including Western Distributor and Melbourne Metro Asia - Backlog revenue higher from internal pipeline Europe - Recent project wins to assist in achieving scale to restore margins in future periods with $1.5 billion in preferred bidder status Americas - HY17 lift in margin expected to normalise - New work secured of $2.5 billion, $4.2 billion in preferred bidder status - Post balance sheet date awarded c.us$1.5 billion expansion of the Jacob K. Javits Convention Center (50% JV in New York)

58 32 Construction earnings EBITDA ($m) EBITDA margins (%) HY16 HY % 3% 2% 3.6% 3.0% HY16 HY17 3.2% 2.0% 2.7% (1.4) (2.8) 3.9 Australia Asia Europe Americas Total EBITDA Europe (GBPm) 1% 0.6% 0.7% 0.1% 0% (1%) (0.5%) (0.4%) Australia Asia Europe Americas Total EBITDA Americas (USDm) (1.3) HY16 HY17 HY16 HY17

59 33 Construction backlog Backlog revenue ($b) Backlog revenue by region ($b) 1 Aus Services Asia Europe Aus Engineering $20.5b 6.9 Americas FY12 FY13 FY14 FY15 FY16 HY17 Aus Building 6.8 Backlog revenue by client 1,2 Backlog revenue by sector 1,2 Corporate 18% Lendlease Commercial Other 14% 9% 19% Transport 44% 38% Government Defence Hotel / Entertainment 1. As at 31 December Includes all Construction projects greater than $100 million, which represents 78% ($16.0 billion) of secured backlog 16% 10% 32% Residential

60 34 Construction new work secured / backlog New work secured revenue ($m) Australia Asia Europe Americas Total Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 New work secured revenue 1 Building 2, , , , , ,888.6 Engineering 1, , Services Total new work secured revenue 3, , , , , ,345.6 Backlog revenue ($m) Australia Asia Europe Americas Total Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 Backlog revenue 2 Building 6, , , , , , , ,729.1 Engineering 2, , , ,277.9 Services 1, , , ,523.7 Total backlog revenue 10, , , , , , , ,530.7 Backlog realisation (%) Year ending June Year ending June Post June Total New work secured revenue is the total revenue to be earned from projects secured during the year 2. Current period backlog revenue is the total revenue to be earned from projects in future financial periods, based on projects secured as at 31 December Although backlog revenue is realised over several periods, the average foreign exchange rate for the current period has been applied to the closing backlog revenue balance in its entirety, as the average rates for later years cannot be predicted

61 35 Construction backlog revenue by region Group ($m) Australia ($m) 6,346 (6,306) 2,766 (3,272) 257 (179) Book to bill 1 : 1:01 Book to bill 1 : 0:85 18,573 20,670 20,531 10,847 11,890 11,641 HY16 FY16 New work secured Revenue realised Other HY17 HY16 FY16 New work secured Revenue realised Other HY17 Europe ($m) Americas ($m) 2,548 (2,157) 412 (612) (182) (228) Book to bill 1 : 1:18 1,588 1,505 Book to bill 1 : 0:67 1,077 5,799 6,715 6,924 HY16 FY16 New work secured Revenue realised Other HY17 HY16 FY16 New work secured Revenue realised Other HY17 1. Ratio calculated as new work secured over revenue realised

62 36 Australian market outlook Engineering 1 National major road construction (major project commencements, real terms, $b) Forecast FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 National major railways construction (major project commencements, real terms, $b) Forecast FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1. Source: Estimates based on Lendlease Group Research, ABS 2. Major project = toll road or public project > $500 million (construction activity, not total value)

63 37 Investments

64 38 Investments HY17 Overview Owns and / or manages investments including a leading wholesale investment management platform and also the Group s ownership interests in property and infrastructure co-investments, Retirement and US Military Housing Financial returns include fund and property management fees, yield and capital growth on investment positions, and returns from the Group s Retirement portfolio and US Military Housing business Drivers FUM of $24.7 billion, up 12.3% on the prior corresponding period New equity raised of $0.8 billion - Mainly attributable to equity commitments relating to the Circular Quay Tower development in Sydney Investments managed on behalf of the Group increased to $3.3 billion Retirement Ownership and Management: unit resales at higher average price (+8.6%) - 30 bps decrease in discount rate to 13.0% Higher investment income from co-investment in Lendlease International Towers Sydney Trust Higher investment management fees due to FUM growth Restoration of profitability in Asia driven by stronger investment income and asset devaluations in the prior corresponding period Higher asset management fees from the America s military housing units under management Performance HY16 HY17 % Operating EBITDA ROIC (%) Invested Capital ($b) Revaluations ($m) Revaluations / Operating EBITDA (%) Outlook ROIC leverage from FUM and assets under management FUM supported by $1.5 billion co-investment Growing FUM and asset management income - c.$3 billion 1 of additional secured FUM across the Group s urbanisation projects in delivery c.$600 million direct exposure to premium grade office at Barangaroo South - Higher investment income from co-investment in Lendlease One International Towers Sydney Trust following practical completion of Barangaroo South T1 736 US residential for rent apartments in delivery provide a source of investment income and potential investment product for capital partners Explore introduction of capital partners to Retirement over the medium term Well positioned to deliver future recurring earnings through: - ~150 institutional investors - $1.5 billion co-invested in funds - $1.7 billion of capital across 71 retirement villages - 53,105 military housing units under management 1. Represents secured future FUM increase from funds with development projects in delivery

65 39 Investments earnings / ownership EBITDA by region ($m) EBITDA by activity ($m) HY16 HY HY16 HY (19) Australia Asia Europe Americas Total Ownership interests Investments by product ($b) 3 Investments by region ($b) Operating earnings % 4% 4% 53% 50% 51% % 4% 3% 3% 2% 2% 16% 11% 10% 46% 46% 45% 77% 83% 85% HY16 FY16 HY17 Co-Investments Retirement ownership Infrastructure HY16 FY16 HY17 Australia Asia Europe Americas 1. Earnings derived from co-investments, the Retirement business and equity returns from US Military Housing 2. Earnings derived from the investment management platform and the management of the US Military Housing business 3. Represents the Group s assessment of market value

66 40 Funds Under Management (FUM) Growth in FUM ($b) CAGR of 15.0% FY12 FY13 FY14 FY15 FY16 HY17 FUM by asset class 1 FUM by region ($b) 1 Industrial 4% Europe 1.4 Asia 5.4 Commercial 42% 52% Retail $24.7b Australia 17.9 Other 2% 1. As at 31 December 2016

67 41 FUM by region Group ($b) Australia ($b) 1.0 (0.1) 0.5 (0.3) 1.0 (0.1) HY16 FY16 Acquired Divested Net Impact of fx revaluations HY17 HY16 FY16 Acquired Divested Net Impact of fx revaluations HY17 Europe ($b) Asia ($b) (0.2) (0.1) HY16 FY16 Acquired Divested Net Impact of fx revaluations HY17 HY16 FY16 Acquired Divested Net Impact of fx revaluations HY17

68 42 Major fund summary Funds Management Platform 1 APPFR 2 APPFC 3 APPFI 4 LLITST 5 LLOITST 6 ARIF 7 1 (Somerset) ARIF 7 3 (Jem) PPPL 8 LLRP 9 Total assets ($ billion) Gearing (%) LLC co-investment (%) LLC co-investment ($ million) Region AUS AUS AUS AUS AUS Asia Asia Asia Europe Asset class Retail Office Industrial Office Office Retail Retail and Commercial Retail and Commercial Retail Number of assets Occupancy (%) Weighted average cap rate (%) The above highlights only selected major funds and 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) 6. Lendlease One International Towers Sydney Trust (Barangaroo South T1) 7. Asian Retail Investment Fund 8. Parkway Parade Partnership Limited 9. Lendlease Retail LP 10. Assets and gearing calculated on a look through basis 11. Includes car park asset 12. Includes Heads of Terms

69 43 Retirement summary Value drivers Investments Valuation drivers HY16 FY16 HY17 Long term growth rate 3.7% 3.7% 3.6% Discount rate 13.3% 13.3% 13.0% Average length of stay ILUs (years) Number of established units 14,295 13, ,433 Units resold 541 1, ,672 1, ,654 Villages / units Location Number of villages Units QLD 12 2,913 NSW 17 3,181 VIC 26 4,057 SA WA 10 1,623 ACT Total 71 12,433 Units by state HY16 FY16 HY17 4,057 3,181 2,913 1, VIC NSW QLD WA SA ACT 1. In FY16, the Group divested its NZ Retirement business, consisting of 996 units and 5 sites

70 44 Lendlease overview

71 45 Vision: to create the best places Strategic framework Business model Competitive advantage Pillars of value

72 46 Globally diverse pipeline Our globally diverse pipeline provides long term earnings visibility 1 $49.0b $20.5b $24.7b $3.3b Development pipeline Americas $3.7b Development pipeline $6.9b Construction backlog revenue $0.1b Investments Construction backlog revenue Europe FUM $8.7b Development pipeline $1.1b Construction backlog revenue $1.4b FUM $0.1b Investments Asia Investments $5.7b Development pipeline $0.9b Construction backlog revenue $5.4b FUM $0.3b Investments Australia $30.9b Development pipeline $11.6b Construction backlog revenue $17.9b FUM $2.8b Investments 1. All data as at 31 December 2016

73 47 Global trends influencing our strategy Urbanisation By 2014, 54% of the world s population were estimated to live in urban areas; this will reach 60% by Lendlease leadership $35.0b 2 Urbanisation pipeline 12 major urbanisation projects 3 across 8 Gateway cities Infrastructure Funds growth Sustainability Ageing population Worldwide infrastructure spending will grow from US$4 trillion per year in 2012 to more than US$9 trillion by Global assets under management are forecast to rise from US$64 trillion in 2012 to US$102 trillion by Cities occupy 2% of the world s land mass, but are responsible for up to 70% of harmful greenhouse gases 8 Internationally, people aged 60+ will grow the most in number between 2015 and A leading tier 1 Engineering business in Australia $4b+ PPPs secured in last 5 years 5 Lendlease accounted for ~10% of new equity raised globally for core wholesale mandates since Recognised by GRESB as an international leader 9 Development pipeline targeting 98% green certification A market leader in retirement living sector in Australia Actively seeking to transfer skills offshore Technology Global investment in real estate technology start-ups has grown from $0.2b in 2012 to $1.7b in World Urbanization Prospects: The 2014 Revision, United Nations 2. As at 31 December Urbanisation development projects with end value >$1b 4. Capital project and infrastructure spending outlook to 2025, PwC Cumulative data from FY12 FY16 6. Asset Management 2020: A Brave New World, PwC 2014 A pioneer of new delivery technologies e.g. Cross Laminated Timber, pre-fab and modular; a leader in new safety initiatives 7. Preqin Ltd; represents period 2009 to UN-HABITAT s Global Report on Human Settlements Global Real Estate Sustainability Benchmark (GRESB) 2016 survey; 5 funds achieved no.1 ranking in respective global or regional category 10. World Population Prospects: The 2015 Revision, United Nations 11. CB Insights: Real Estate Tech Start-ups Funding Overview 2016