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Steve McCann Group Chief Executive Officer & Managing Director Strategy and Business Overview

Steve McCann Group Chief Executive Officer & Managing Director Strategy and Business Overview. Agenda. Update on safety External business environment Key priorities for the Group Pipeline of opportunities Strategy update Continued focus on key trends Progress on strategy to date

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Steve McCann Group Chief Executive Officer & Managing Director Strategy and Business Overview

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  1. Steve McCannGroup Chief Executive Officer & Managing DirectorStrategy and Business Overview

  2. Agenda • Update on safety • External business environment • Key priorities for the Group • Pipeline of opportunities • Strategy update • Continued focus on key trends • Progress on strategy to date • Key strategic deliverables 2011 • Operational update Asia • Operational update Europe

  3. Good progress on safety Gold Coast University Hospital, Queensland 1. Excludes infrastructure business (Valemus) 3

  4. External environment favourable 4

  5. Key priorities for the Group • Integrate Valemus infrastructure business and deliver on earnings accretion • Integration of business on track • Strong infrastructure backlog driven by Abigroup • Progress major projects • Focus on portfolio management • Position offshore businesses for market recovery Mangoola Coal Rail Bottom Loop, NSW 5

  6. Significant pipeline of opportunities 6

  7. Strategy update

  8. Our strategic direction To be the Leading International Property and Infrastructure Group Our Strategic Direction: Sectors Leading Segments International • Development • Construction • Investment Management • Services • Ownership Property and Infrastructure are our core sectors. We will participate in defined sub-sectors where we have core capabilities Be in the top 3 industry leaders within our chosen market segments and sectors Focus on 4 core regions with defined geographies 8

  9. Our segment position Development Construction Investment Management Services Ownership • Focused predominately on co-investments • Use capital to support fund growth • A leading development management, design & delivery capabilities • Strong capabilities in project management, design and construction and new acquired capability in engineering and construction • A leading investment management platform • Strong access to capital • Property, asset and facilities management expertise Target risk adjusted capital 35-45% Target risk adjusted capital 30-40% Target risk adjusted capital 5-15% Target risk adjusted capital < 5% Target risk adjusted capital 10-20% 9

  10. Continued focus on key trends 10

  11. Our strategic pathway LEAD Outperformance  • World class property and infrastructure solutions company • Strong integrated offering • Trusted investment manager BUILD Disciplined Expansion • Reshape portfolio • Growth platforms • Operational excellence • Invest in people • Right Structure • Right structure • Cost out • Drive efficiency • Capital management RESTORE A Focused Core Business RESTORE • Continue to focus on • business transformation • Capital management • Divestment of non core assets • Valemus integration • Talent management • Portfolio of successful projects • Best in class execution 11

  12. Key strategic deliverables – 12 to 24 months BUILD • Reshape portfolio • Growth platforms • Operational excellence • Invest in people 12

  13. Operational update

  14. Earnings split Sector Earnings Split 1 June 2010 Proforma2 June 2010 Actual Geographical Earnings Split 1 June 2010 Proforma2 June 2010 Actual • Based on Operating Profit after Tax from operating businesses • Based on Valemus CY09 Pro Forma Operating Profit after Tax and Lend Lease’s FY10 Operating Profit after Tax 14

  15. Asia business update Operating profit after tax for the six month period ended 31 Dec 2010 15

  16. Europe business overview Operating profit after tax for the six month period ended 31 Dec 2010 16

  17. Development - Communities Varsity Lakes, Gold Coast, QLD 17

  18. Overview of communities market • Quality of enquiry at Lend Lease projects improving, however conversion time has increased on back of decline in sentiment • Affordability pressures continue to be driven by interest rate rises and higher living costs • Tightening bank lending criteria resulting in lower Loan to Value Ratios • Lend Lease product mix focused on affordable end of the market • Pricing and margins across Lend Lease portfolio remain resilient • Long term fundamentals are positive with strong underlying demand and ongoing stock shortfall and supported by solid employment outlook Source: Westpac-Melbourne Institute, RBA and Lend Lease Research Source: BIS Shrapnel 18

  19. Communities portfolio strategy update • Capital model to match size and nature of project – land management, joint ventures or direct ownership • New project acquisitions focused on replenishing existing portfolio in affordable growth corridors • Recent entry into WA market • Focus on product innovation and builder partnerships to deliver sales volume • Strong reputation in place, creation and delivery of key infrastructure to drive value and competitive advantage Mawson Lakes, SA Lakeside Pakenham, VIC Flexible business model and diverse geographic spread of projects 19

  20. Senior Living Woodlands Park, Berwick VIC 20

  21. Investment Management MidCity Centre, Sydney, NSW 21

  22. Key priorities • Grow construction backlog • Focus on health pipeline and convert internal opportunities • Leverage multi-sites/ capital services platform • Deliver key development projects • Achieve key planning outcomes, secure tenants and capital partners • Replenish communities backlog in key affordable markets • Continue to drive operational excellence across senior living platform • Simplify operating model in preparation for capital recycling • Continue to grow funds under management • Strong performance in existing funds is key 22

  23. Steve McCannGroup Chief Executive Officer & Managing DirectorClosing Comments

  24. Key priorities for the Group • Integrate Valemus infrastructure business and deliver on earnings accretion • Focus on execution and delivery of major projects • Ongoing portfolio management • Position offshore businesses for market recovery Darling Quarter, Sydney, NSW 24

  25. Positive outlook • Significant backlog, development pipeline and access to capital • Continued deal momentum • Capital invested is supported by third party equity • Focus on capital recycling • Emphasis on quality and consistency of execution • Strong long term outlook with positive EPS trend • Expect accretion from Valemus deal • Strong 1st half result positions the Group well for the full year • Key projects expected to begin to deliver returns from 2nd half of financial year 2012 25

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