Lendlease Investor Day presentation 20 October 2016 Attached is the - PDF document

20 October 2016 Lendlease Investor Day presentation 20 October 2016 Attached is the presentation to be given today by Lendlease senior executives at its Investor Day. The event will be webcast live via www.lendlease.com ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: Investors: Media: Justin McCarthy Natalie Campbell Tel: 02 9236 6464 Tel: 02 9236 6865 Mob: 0422 800 321 Mob: 0410 838 914 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

Lendlease Investor Strategy Day 20 October 2016

2 Agenda Strategy Update and Q&A Steve McCann - Group Chief Executive Officer and Managing Director Portfolio Management Framework Tarun Gupta - Group Chief Financial Officer Vikas Kaul - Group Head of Research Closing and Final Q&A Steve McCann - Group Chief Executive Officer and Managing Director Image: 56 Leonard Street, New York

INVESTOR DAY 2016 3 Indigenous engagement and reconciliation Our vision 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

Section 1 Strategy Update Steve McCann Group Chief Executive Officer and Managing Director Illustration: Barangaroo South, Sydney

INVESTOR DAY 2016 5 Our vision Our strategic framework FOCUS We focus on delivering optimal performance safely at our target returns GROW We target disciplined growth in sectors aligned with global trends and with a focus on our target global Gateway Cities Our pillars of value Health & Our Our Financial Sustainability Safety Customers People Our integrated business model Investments Development Construction Maximising long term securityholder value

INVESTOR DAY 2016 6 Global trends influencing our strategy Lendlease leadership By 2014, 54% of the world’s $37b 2 Urban Regeneration pipeline • population were estimated to live in Urbanisation • 12 major urban regeneration urban areas; this will reach 60% by projects 3 across 8 Gateway Cities 2030 1 Worldwide infrastructure spending • A leading tier 1 Engineering will grow from US$4 trillion per year business in Australia Infrastructure in 2012 to more than US$9 trillion per $4b+ PPPs secured in last 5 years 5 • year by 2025 4 Global assets under management are • Lendlease accounted for ~10% of forecast to rise from US$64 trillion in Funds growth new equity raised globally for core 2012 to US$102 trillion by 2020 6 wholesale mandates since 2009 7 • Recognised by GRESB as an Cities occupy 2% of the world’s land international leader 9 Sustainability mass, but are responsible for up to • Development pipeline targeting 70% of harmful greenhouse gases 8 98% green certification • A market leader in retirement living Internationally, people aged 60+ will Ageing sector in Australia grow the most in number between population • Actively seeking to transfer skills 2015 and 2050 10 offshore • A pioneer of new delivery Global investment in real estate technologies e.g. Cross Laminated Technology technology start-ups has grown from $0.2b in 2012 to $1.7b in 2015 11 Timber, pre-fab and modular; a leader in new safety initiatives 1. World Urbanization Prospects: The 2014 Revision, United Nations 7. Preqin Ltd; represents period 2009 to 2015 2. As at 30 June 2016 8. UN-HABITAT’s Global Report on Human Settlements 2011 3. Urban Regeneration development projects with end value >$1b 9. Global Real Estate Sustainability Benchmark (GRESB) 2016 survey; 5 funds 4. Capital project and infrastructure spending outlook to 2025, PwC 2015 achieved no.1 ranking in respective global or regional category 5. Cumulative data from FY12 - FY16 10. World Population Prospects: The 2015 Revision, United Nations 6. Asset Management 2020: A Brave New World, PwC 2014 11. CB Insights: Real Estate Tech Start-ups Funding Overview 2016

INVESTOR DAY 2016 7 Our competitive advantage We distinguish ourselves through our integrated model, financial strength and strong track record of execution 1 INTEGRATED MODEL $23.6b Capability and scale to deliver large, $48.8b Funds Under long term, complex projects that Development Management leverage more than one of our pipeline 1 (FUM) 1 segments on a single project Disciplined 2 portfolio FINANCIAL STRENGTH management to Financial capacity through our maximise balance sheet strength and access securityholder to third party capital value 3 TRACK RECORD $20.7b Strong risk Strong track record of delivering Construction management quality design and sustainable backlog and execution outcomes safely revenue 1 delivery skills 1. As at 30 June 2016

INVESTOR DAY 2016 8 Execution excellence remains our priority Over the past 5 years Lendlease has delivered… Earnings per Stapled Security 3 (cents) Return on Equity 1 (%) 18.2% 142.7 13.5% 13.6% 13.0% 12.4% 120.1 106.8 95.6 87.7 2 2 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Operational highlights Last 5 years 4 ~25,000 ~600k sqm ~ $8.2b ~ $55.9b $4b+ Equity raised Residential units / Commercial space Construction PPP projects (wholesale) completed 5 secured 6 lots sold revenue Sustainability Employee Safety engagement 1.8 86% 98% FY16 5 Lendlease 84% LTIFR 7 operations Development pipeline funds top-ranked (broadly in line with global without critical targeting green in 2016 GRESB high performing companies) 9 incident certification survey 8 1. Calculated as the annual Profit after Tax divided by the arithmetic average of beginning, half year and year end securityholder equity 2. FY14 includes Bluewater sale 3. Calculated using the weighted average number of securities on issue including treasury securities 4. Cumulative data from FY12 - FY16 5. Reflects major commercial projects (>10,000 sqm; office and retail) completed by the Development segment 6. Excludes ~$5b East West Link PPP secured in 2014 and subsequently cancelled 7. Lost Time Injury Frequency Rate 8. Global Real Estate Sustainability Benchmark (GRESB) 2016 survey; 5 funds achieved no.1 ranking in respective global or regional category 9. Survey managed by Willis Towers Watson. Employee engagement is a measure of overall employee satisfaction across our business

INVESTOR DAY 2016 9 Urbanisation continues to underpin our growth strategy Our focus on major urban regeneration projects 1 in global Gateway Cities has underpinned our record pipeline position and will deliver long term securityholder value 50 50 12 major urban 45 45 regeneration projects in 8 Gateway Cities 40 40 $37.3b 35 35 $32.8b 30 30 5 major urban $25.0b 25 25 $23.1b regeneration projects in $21.3b 4 Gateway Cities $23.6b 20 20 $21.3b $15.7b 15 15 $16.3b $15.0b 10 10 $12.3b $10.9b 5 5 FY11 FY12 FY13 FY14 FY15 FY16 Urbanisation Pipeline (Development End Value) FUM 1 2 • Major urban regeneration projects have more than • Growth in pipeline supports the integrated model doubled since FY11 with 12 major projects in the • FUM growth of ~17% per annum since FY11 secured pipeline • Construction internal pipeline accounts for 23% 2 of • Projects typically secured through capital light (land backlog, providing design and delivery capability management or staged payment) approach and execution certainty enabling flexibility in delivery 1. Urban Regeneration development projects with end value >$1b 2. Based on analysis of major construction projects backlog disclosed in the Portfolio Report as at 30 June 2016, which represents 51.2% ($10.6b) of total backlog ($20.7b) as at 30 June 2016. Major construction projects are those with a construction value >$100m and have received client approval for disclosure

INVESTOR DAY 2016 10 Development pipeline provides long term earnings visibility 1 Record secured pipeline of $48.8b controlled by invested capital of $2.9b lots lots Communities and 53,820 3,5872,903 Estimated lots Presold Retirement Settled annual Expected to settle during FY17 turnover 6 (~3,500 - 4,500 p.a.) $0.9b $0.7b $11.5b $10.8b ~3,500 - 4,500 Settled Presold settlements + Apartments units units ~1,000 - 2,000 20,417 1,203 5,073 units settlements Settled Presold Urban Regeneration 21 major apartment buildings in delivery, estimated completion FY17 - FY19 Commercial sqm sqm 800,000+ ~2 - 3 buildings sqm 79,000 375,000 ~2 - 3 buildings p.a. commenced 20+ buildings 2 In-delivery Completed 10 buildings in delivery, estimated completion FY17 - FY19 $28.1b $37.3b $2.5b 3 $9.2b 4 = FY16 In-delivery Remaining 5 1. All data as at 30 June 2016 $48.8b 2. Assumes average building size of ~40,000 sqm, consistent with current average of ~37,500 sqm for those in delivery 3. $1.2b apartments settled and $1.3b end value commercial completed Total pipeline 4. $4.7b apartments presold and in delivery; $6.5b end value commercial in delivery, with $2b completed to date 5. Note some of remaining pipeline will convert in FY17 end value 6. Subject to market conditions