ASX Announcement

Lend Lease Investor Day presentations

9 October 2014

Attached are the presentations to be given today by Lend Lease senior executives at its Investor Day. The event will be webcast live via www.lendlease.com

For further information, please contact:

Investor Relations: Corporate Affairs: Suzanne Evans Vivienne Bower Head of Investor Relations Group Head of Corporate Affairs Tel:02 9236 6464 Tel: 9237 2174 Mobile: 0407 165 254 Mobile: 0431 487 025

Lend Lease Corporation Limited ABN 32 000 226 228 and 1 Lend Lease Responsible Entity Limited ABN 72 122 883 185 AFS Licence 308983 as responsible entity for Lend Lease Trust ABN 39 944 184 773 ARSN 128 052 595

Level 4, 30 The Bond Telephone +61 2 9236 6111 30 Hickson Road Facsimile +61 2 9252 2192 Millers Point NSW 2000 www.lendlease.com Australia

LEND LEASE Investor Day 2014 9 October 2014

Image: Artist Impression – 432 Park Avenue, New York Important Notice

This presentation has been prepared in good faith, but no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation (any of which may change without notice). To the maximum extent permitted by law, Lend Lease Corporation Limited, Lend Lease Trust and their controlled entities (together referred to as the ‘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 through use or reliance on anything contained in or omitted from 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 has been based on current expectations about future events and is, however, subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations described in such prospective financial information.

The Group’s statutory results are prepared in accordance with International Financial Reporting Standards (IFRS). This presentation also includes certain non-IFRS measures in presenting the Group’s results. Certain non-IFRS financial measures have not been subject to audit or review.

A reference to 2014 refers to the financial year ending 30 June 2014, and a reference 2015 refers to the financial year ending 30 June 2015 unless otherwise stated. All figures are in AUD unless otherwise stated.

2 1 Lend Lease Strategy Overview Australian Residential and 2 Investment Management Trends

3 Urban Regeneration

4 Infrastructure

Healthcare and 5 US Development Risk Management and Capital 6 Allocation

7 Closing and final Q&A

AGENDA Image: Chau Chak Building, UTS Sydney 1STRATEGY Steve McCann Group Chief Executive Officer and Managing Director

Image: Amy Dreher – National September 11 Museum Pavilion – New York The Journey So Far

Since 2009 we have delivered total securityholder returns1 of 19.1 per cent per annum versus 10.6 per cent per annum for the ASX200

. In 2009 during a period of economic uncertainty, we set strategic principles to secure future growth . Successful execution since 2009 has delivered outperformance for our securityholders . Earnings diversification by sector and geography

1 Source IRESS . Compound annual TSR between 30 June 2009 to 3 October 2014 shown. ASX200 TSR based on ASX200 Accumulation Index 5 Leadership performance

Critical Impact Leadership in core markets 1 Urbanisation creates increasing Urban . 11 major projects under development pressure to plan for, and Regeneration accommodate a denser population . ~$25b of urban regeneration secured 

2 . Australasia's largest owner, operator & Ageing An ageing population stretching housing and support services in all of developer of senior living communities Population our major markets . Delivered major Healthcare projects/PPPs  3 Sustainability is a key focus for . Sustainability, innovation and delivery Governments and private sector. A - first 6 Star v3 building in the market Sustainability pre-requisite for future growth . 100% of secured major development pipeline opportunities targeting green certification 

4 Continuing growth in FUM, . FUM growth of 9% over last 12 months ($16.3b) consolidation of large pension funds rd Funds Growth and emergence of sovereign wealth . Continued focus on driving 3 party capital funds as dominant investors solutions 

5 Urbanisation & resource demand . Infrastructure platform at scale in Australia Infrastructure driving need for infrastructure at both . ~$5b major engineering backlog revenue1 the social and economic levels 

We regularly revisit our leadership themes and how they continue to shape our business

1 Engineering backlog at 30 June 2014 $2.1bn. ~$5bn includes projects at preferred status or contractual close post balance date. 6 Understanding the property cycle

Develop platforms and capability Capital recycled and reinvested for earnings growth into key growth platforms

Disciplined Origination Efficient recycling

. Barangaroo . Bluewater

. Elephant & Castle . Jem

. Valemus . King of Prussia

. Dasco . Greenwich Peninsula

7 Evolution of our strategy

Deliver optimal Disciplined growth around performance safely our integrated model

FocusFocus GrowGrow

. Disciplined execution of . Disciplined origination and existing pipeline delivery of new pipeline of . Production of $2.5 billion of opportunities residential pre-sales revenue . Seek appropriate geographic . Risk and capital management diversification in offshore . Commitment to safety markets . Leverage competitive . Continue to invest in our people advantage in urban and attract best talent regeneration . Expand engineering footprint . Increase investment and passive income streams

8 Focus

Development1 Construction & Infrastructure1 Investments1

$37.7b pipeline $16.2b backlog $16.3b FUM

Deliver optimal performance safely 9 1 As at 30 June 2014 Grow

Disciplined Growth Integrated platforms Focused origination in growth sectors Target sectors where we can differentiate where we have strong capabilities with our integrated model valued by our investors

Safety Scale Urban . Target opportunities in defined cities Track record Resilience Regeneration within portfolio guidelines, supported Competitive position Outlook by focused capital & funding plans

Capability Market . Continue to drive operational Senior Living excellence & potentially expand into adjacent sectors and regions Returns

. Build on our global healthcare Create value for securityholders Healthcare footprint, international track record Complement existing business strengths and proven partnerships with government, investors and operators Maintain Lend Lease values

Disciplined growth around our integrated model

10 Depth of management experience

Dan Labbad Steve McCann Chief Executive Officer, International Operations Group Chief Executive Officer and Managing Director . Joined Lend Lease in 1997. From July 2012 until August 2014 Dan was . Joined Lend Lease in 2005 as CEO Investment Management. Group Chief Operating Officer. He has extensive leadership experience Appointed Group CFO February 2007, Group CEO December across the Lend Lease platform both in Australia and internationally 2008 and Managing Director in March 2009 . Appointed Chief Executive Officer, International Operations in 2014, . Over 25 years of experience in real estate development and overseeing Europe, Americas and Asia regions investment management, finance, investment banking and mergers and acquisitions law Rod Leaver Chief Executive Officer, Asia Tony Lombardo . Joined Lend Lease in 2008 . Over 30 years experience in the property industry and has worked Group Chief Financial Officer extensively throughout Australia and Asia . Joined Lend Lease in 2007 as Group Head of Strategy and Mergers and Acquisitions. Appointed as Group CFO in 2011 Denis Hickey . Almost ten years at GE, with responsibilities across numerous Chief Executive Officer, Americas functional disciplines including Strategy, Mergers & Acquisitions . Joined Lend Lease in 2012 as Managing Director of Australian and Finance, for both GE Capital and GE Corporate development and appointed CEO Americas in 2014 . Over 20 years of experience across all aspects of real estate development Bob McNamara and investment management Group Chief Risk Officer . Joined Lend Lease in 2010 as CEO Americas and appointed David Saxelby Group Chief Risk Officer in 2014 Chief Executive Officer, Construction & Infrastructure, Australia . Over 35 years of experience managing global businesses in the . Joined Lend Lease in 2012 as Chief Operating Officer of the Australian business development, design and delivery of projects . Former Managing Director of Thiess, part of the Leighton Group, where he managed a diverse business across Australia and South East Asia, working in the construction, mining and the services sectors Vivienne Bower Group Head of Corporate Affairs Tarun Gupta . Joined Lend Lease in 2012 Chief Executive Officer, Property, Australia . More than 20 years experience in Corporate Affairs and Investor . Joined Lend Lease in 1994 Relations, in-house and consulting. Including roles at Westpac, . Tarun has held a number of senior executive positions within Lend Lease’s Multiplex Group and Aristocrat Leisure investment management business. Prior to his current role Tarun was appointed Group Head of Investment Management

Karen Pedersen Michael Vavakis Group General Counsel Group Head Human Resources . Joined Lend Lease in 2013 . Joined Lend Lease in 2010 . More than 20 years experience in the property industry included . Over 20 years experience in Global HR and HR strategy in senior complex highly structured transactions, funds management, new executive positions in Australia, Singapore, Hong Kong and USA products, and corporate transactions 11 Depth of management experience

Established management team with a proven track record

Recent appointments further support our strategic goals

Dan Labbad Bob McNamara New Chief Executive Denis Hickey New Chief Risk Officer to International Operations Appointed as Chief Executive ensure consistent and evaluating and managing Americas to expand our disciplined approach to international growth capabilities and footprint in origination and operational opportunities from a portfolio the broader US market risk across the Group perspective

12 AUSTRALIAN RESIDENTIAL & 2 INVESTMENT MANAGEMENT TRENDS

Artist Impression: Barangaroo South, Sydney Australian residential - trends

Growth

“In Sydney, the city has Australian population growth experienced a residential Undersupply of housing for undersupply, with the past five financial years years rd seeing completed strongest in OECD dwellings total only 79,500, against an 9 3 estimated underlying 3 Resulting in increased demand for new 1.7 % per annum in the last decade demand of 122,9001.” housing/upward house price pressure2

“Increasing the supply of Opportunity developable land would serve to reduce its cost and Lend Lease pre-sales revenue in Australia now promote new development. Significant backlog of built-form and This need not just be land units at Lend Lease releasing new land on the city fringes, but also by billion rezoning existing commercial and industrial $1.5 land that may be more valuable as residential or 67,560 1,283 pre-sold built-form units and 1,842 increasing the height and zoned pre-sold land units density limits of sites2.”

1 JLL Research – May 2014 2 ABS/BIS Shrapenel - Affordable Housing in Australia, February 2014 3 Oxford Economics 14 Affordability ratios below 10 year average

Sydney rent growth and vacancy Affordability ratio – Sydney, Melbourne and Brisbane Quarterly observations Quarterly observations

20% -3% 45%

15% 40% -2%

10% Undersupplied

35% -1% 5% 30%

0% 0% Axis Axis inverted -5% 25%

Rental y/y growth 1%

-10% Actual less natural vacancy rate 20% Oversupplied 2% -15% 15%

-20% 3%

Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14

Mar 00 Mar 02 Mar 04 Mar 06 Mar 08 Mar 10 Mar 12 Mar 14 SYD affordability ratio SYD 10yr average Deviation of actual to natural residential vacancy rate (rhs) MEL affordability ratio MEL 10yr average Three bedroom house rental y/y% change (lhs) BRI affordability ratio BRI 10yr average

15 Source: REIA, RBA, ABS and Lend Lease Group Research Australian residential driving near term growth

Australian residential pre-sold revenue of $1.5 billion across FY15 – FY17

Record year for Communities settlements. Apartment volumes increasing above original target of circa 700 settlements per annum

Undersupply of housing for nearly a decade1

Increased foreign demand providing further stimulus

Expect strength to continue for another 12-18 months subject to macro environment

1 ABS/BIS Shrapnel - Affordable Housing in Australia, February 2014 16

Communities - volumes up strongly in 2014

Communities residential land lots Backlog units by geography Residential land lots settled, up SA 5% WA 3% 32% VIC 18% ACT & NSW In FY14. Land Lot pre-sales of 1,842 up 40% 18% QLD 56% providing strong platform for growth in FY15

Zoned Backlog 100% All 28 sites in Australia are zoned. Positioned to meet market demand and leveraged to access price and volume growth

Yarrabilba Display Village - QLD 17 Australian apartment pre-sales at record highs

Pre-sold % / Apartments – pre sold and in delivery pre-sold $m FY14 FY15 FY16 FY17+ revenue . 2 apartment buildings: Anadara and Alexander Barangaroo . 159 units 100% South ~$300 million . 3 apartment buildings: Darling One, St Leon & Wirth House Darling . 538 units 100% Square ~$580 million1

. 2 apartment buildings Victoria . 251 units (Concavo) 91% Harbour . 578 units (888 Collins) 59% ~$460 million Brisbane . 5 apartment buildings: The Green (RNA) . 356 units 92% Showgrounds ~$160 million . 1 apartment building: Studio 9 Richmond . 203 units (completed) 88%

. 1 apartment building: Cobalt Place Wandsworth . 104 units 78% ~$75 million . 3 apartment buildings: . 284 units (One The Elephant) 89% Elephant & Castle . 235 units (Trafalgar Place) 93% . 360 units (South Gardens) 60% ~$570 million The . 2 apartment buildings: Glasshouse Gardens International . 333 units 79% Quarter ~$200 million 18 Indicates profit earned in financial year 1 Darling Square – 227 units pre-sold at 30 June 2014. 311 units pre-sold in 1H15. Darling Square . Circa 1,400 apartments and sky homes . 5,500 sqm of new retail space . First apartment launch in June 2014 – significant interest and 100% pre-sales for the first release of 538 apartments ($580 million of revenue) . Pre-sales occurred ahead of schedule . Project Development Agreement expected to be signed by end of CY14 . Registrations currently being taken for phase 2 of the project

19 888 Collins Street

. Residential phase of Victoria Harbour progressing well . Tallest tower in the Victoria Harbour Precinct – at the intersection of Bourke and Collins Street in Melbourne . 40 floor tower, 578 apartments over 36,000 square metres . Strong pre-sales leading to construction ahead of planned schedule . Expected to be delivered in FY17

20 Investment Management – growing platform

3 year growth in FUM and AUM

FUM of 12 FUM AUM 10

billion 8 6 $10.9 billion $ 4 Up 6% in 12 months 2 0 FY12 FY13 FY14

9 major Lend Lease projects Institutional investors financed by third party capital in the last 5 years including Darling Quarter, and Lend Lease International Towers Sydney ~90 Trust Across the Australian platform

21 Q&A AUSTRALIAN RESIDENTIAL & INVESTMENT MANAGEMENT TRENDS

Artist Impression: Barangaroo South, Sydney URBAN 3 REGENERATION

Image: Victoria Harbour, Melbourne Urban Regeneration - trends

Growth

Urban population in 2014 Since 1990 ten mega-cities “Continuing population accounted for have now grown to growth and urbanisation are projected to add 2.5 Mega cities are billion people to the % Up 34% expected to grow world’s urban population since 1960 to 41 by 2030 by 20502” 54 28 of the global population1 globally, housing 453 million people2.

Opportunity

“Harnessing the Master involvement of the private Lend Lease is a world leader with Development Planning sector can often be more cost effective, particularly urban regeneration Maintenance / when the stages of the Construction renewal project (design, Services construction, financing, 11 operations and projects currently under development – Investment Management / maintenance) are bundled Third party capital 3 pipeline of $25 billion together ” capabilitiesIntegrated

1 World Health Organisation – 2014 2 UN Department of Economic and Social Affairs; mega-cities house more than 10 million inhabitants – July 2014 24 3 KPMG/Clayton Utz – Urban Renewal Guidebook 2014 Urban Regeneration Characteristics

 Scale – estimated end development value

Location - city and city fringe, typically government owned  land

Mixed-use – residential, retail, commercial, infrastructure and  place making

 Density - medium to high density development

 Timeframe - long-dated development

Sustainability – Economic, Social and Environment and  ability to create a legacy

25 Urban Regeneration Origination Process – Phase 1

Countries ranked on: . Economic indicators . Urban regeneration indicators Cities ranked on: . Operating environment . Demographic factors indicators; and . Demand drivers . Investor confidence . Unique factors indicators . Property factors; and . Authority/ government

factors

18 39 38 Top countries

 countries   Cities  Projects  Countries

Cities then tiered for in-depth City shortlist created market review to include factors on: such as: . City population; . Ability to operate safely; and . Existing pipeline of opportunities; Countries screened on: . Lend Lease . Capability and deployment . Scale of economy footprint and . Speed to market . Political risk capabilities . Competition/barriers to entry . Civil liberties; and . Regulatory environment . Scale of cities 26 Barangaroo . 1970s – Concrete apron created to accommodate bulk offloading for shipping containers . 1979 – Port Botany constructed, gradually becoming the main port for Sydney . 2003 – Government of New South Wales closes the shipping and stevedoring facilities, designating the site for redevelopment . 2006 – Site renamed Barangaroo . 2007 – Tenders submitted for redevelopment . 2008 – Lend Lease shortlisted for Barangaroo South . 2009 – Lend Lease selected as developer with a Lord Rogers architectural design

27 Barangaroo 490,000 sqm Over 75 new retail outlets Gross Floor Area

New headland park and recreated foreshore with 6,600 sandstone blocks1 Australia’s first large scale 7.7 Hectares Carbon Neutral

Mixed Use Development community

1 Headland Park being delivered for the Barangaroo Delivery Authority 28 Elephant & Castle . 1974 – Heygate Estate in Elephant & Castle, South London completed housing over 3,000 tenants . 2004 – Southwark Council announces master-plan for regenerating the site . 2007 – Lend Lease selected as preferred developer for the scheme . 2011 – Master-plan approvals granted including 25% affordable housing . 2011 – Demolition of the Heygate Estate begins

29 Transforming Elephant & Castle 3,000 new homes Over 50 shops Largest new park in over

70 years ONE THE ELEPHANT In Central London ELEPHANT PARK 284 New Circa 2,500 Homes homes by from 2016 2025

TRAFALGAR PLACE 235 homes from 2015

30 Tun Razak Exchange . 70-acre development in the centre of Kuala Lumpur . Master-developer 1MDB . 2 years of lead time to securing the opportunity . Competitive tender process with 8 other developers bidding . Phase 1 - Lifestyle Quarter is the retail/residential led component of the site . 2014 – Lend Lease selected as preferred developer to partner with 1MDB on phase 1 to develop the Lifestyle Quarter at TRX

31 Tun Razak Exchange Phase 1 - Lifestyle Quarter Retail Mall over 150,000 sqm Gross Floor Area

One hotel and 3 Residential Towers

Acres Estimated End Development Value 17 RM 8 billion Mixed Use Development

32 Long dated major urban regeneration projects

2015 End Value 2020 2025 beyond

Darling Harbour Live ~$2.5b 2019 (DHL)

Barangaroo South ~$6.0b 2020

Victoria Harbour ~$4.5b 2021 Australia

Batman’s Hill ~$1.5b 2025

Brisbane (RNA) 2025 Showgrounds ~$2.5b

Elephant & Castle ~£1.5b 2025

Europe The International

Quarter ~£1.3b 2028

Tun Razak Exchange* ~RM8.0b 2030 Asia * Yet to reach financial close

33 Q&A URBAN REGENERATION

Image: Victoria Harbour, Melbourne 4 INFRASTRUCTURE

Image: Hunter Expressway, NSW Infrastructure - trends

Growth Since the late 1980s Forecast Australian “Australia’s buoyant Infrastructure investment1 economy, growing PPP’s population and increasing freight volumes are billion creating high demand for 127 new infrastructure and Have developed more than A$60 opening up major $50 billion of new roads, rail, water opportunities for Rising to $125 billion with state, territory facilities, energy assets, defence 1 international investment. ” and private sector contributions housing, hospitals and schools

Opportunity “Urbanisation and a

growing population are ~$5.0bn placing increasing Leading construction entity with Engineering pressure on city infrastructure. The economic cost billion of congestion is expected ~ to cost Australians $13 Building Services A$20.4 billion by 2020, providing a significant Backlog revenue in Australia2

incentive to build more (including projects at preferred status/ Integratedcapabilities infrastructure1.” contractual close) ~$7.0bn ~$1.0bn

1 Australian Federal Budget – May 2014/Australian Trade Commission 2 Australian Construction backlog revenue at 30 June 2014 $9.6bn. ~$13bn includes projects at preferred status or contractual close post balance date. 36 Significant Australian Government infrastructure pipeline

37 Source: Department of Infrastructure and Regional Development Australia-wide – major project pipeline

Major Road Project Construction – Australia $ billion Adjusted for cost changes (FY2012 dollars) in work done terms

7.5 Western Sydney Bus and Train Infrastructure (Brisbane) (Badgerys) 6.0 NorthConnex East West East West Link Link Stage 2 4.5 Pacific Highway WestConnex Bruce Highway 3.0

1.5

0.0

38 Source: ABS, Lend Lease Group Research. Major Project = toll road or public project greater than $500 million NorthConnex . Transurban road and tunnel facilitated through the NSW unsolicited proposals process . Efficient bid/tender process . Project size ~$2.65 billion . Linking the M1 and M2, circa nine kilometres of tunnel and motorway interchanges to the north and south . Lend Lease in Joint Venture with Bouygues to deliver Australia’s longest tunnel

39 East West Link . 18 kilometre cross-city road connecting the Eastern Freeway to the Western Ring Road in Melbourne . First fully-integrated Engineering project for Lend Lease: . Structuring and financing of PPP . Design and construction contract . 25 year services and maintenance contract . Equity investment in PPP . September 2014 - East West Connect the consortium comprising Lend Lease/Capella Capital and its D&C JV partners Bouygues and Acciona, selected as preferred bidder for the eastern section of the project . October 2014 – financial close 40 Source: Linking Melbourne Authority Future opportunities - WestConnex

Estimated capital cost 1 . Stages 1a & Descriptions1b: ~$3.4b to $3.6b . Stage 2: ~ $3.6b to $3.8b

Stage 1a (M4 widening) . Parramatta to Homebush Bay Drive . 7km motorway widening, 2km of new viaduct, 17 Bridge improvements and 2 Rail crossings

Stage 1b . Widening 1km of the existing motorway and 5km 2x3 lane tunnels . Linking M4 at Homebush Bay Drive with Parramatta Road and City West Link at Haberfield

Stage 2 • Widening of M5 East and upgrade of King Georges Road interchange • Duplication of M5 East twin 41 1 Westconnex Delivery Authority – 2013 estimated capital costs ($2012 including contingency) tunnels 41

Q&A INFRASTRUCTURE

Image: Hunter Expressway, NSW Morning tea break Webcast will resume at 11.15am AEDT

Image: Adelaide Oval HEALTHCARE & US 5 DEVELOPMENT

Image: Bon Secours St Francis Medical Pavilion Healthcare - trends

Growth

“The shared, long-term Number of people over 60 has US spending on private health trends of an ageing tripled in the last insurance accounts for population and an increase By 2030 in people inflicted with over 60 chronic diseases are population will grow expected to drive demand % years 3.5 times as for health care services in 50 fast as the 59 both developed and total Of total private healthcare emerging economies in 2014 And will more triple again over population1 and beyond1” the next 50 years2 services

Opportunity

Projected Growth in Healthcare Spending “US opportunity remains Current Size of Healthcare Market 15% $4,000 (2012, USD Billions) (%)

strong with a market size of $2.9 trillion, almost $3,000 10% (2015-2019, 5yr Average) five times the overall $2,000 average for countries 5% globally” BillionsUSD $1,000

$0 0% 5yr avg. Annual Growth Rate (%) Rate Growth Annual avg. 5yr

Source: Oxford Economics, Lend Lease Group Research Source: Oxford Economics, Lend Lease Group Research 1 Deloitte - 2014 Global health care outlook 45 2 UN – World Population Ageing 1950 - 2050 Healthcare track record

Europe . Developed eight major PPP hospitals in the UK . Delivered Italy’s and Spain’s first PPP hospitals

Asia . Constructed a 7- storey hospital and senior citizen centre Americas in Tokyo . 1,500+ healthcare . 250-bed hospital in projects delivered, valued Malaysia at over $15 billion . Established . Developed over 360,000 construction square metres of capabilities in the outpatient facilities and health/life sciences medical office buildings sector Australia . ~$7.5 billion of Australian healthcare projects (development and construction) recently delivered or underway including two of Australia’s largest hospitals in QLD and VIC 46 Royal Children’s Hospital Melbourne . $1.0 billion hospital completed in 2013 . 165,000 square metre hospital over seven levels purpose-built for children and the way they are cared for . Sustainable solution: . Rainwater collection from 75 per cent of new roof areas . Blackwater treatment plant, a 10 per cent reduction in overall energy use (compared to a normal hospital) . 2.4 megawatt gas-fired tri-generation plant . Chilled-beam air conditioning, biomass boiler, solar panels and parking for 500 bikes.

47 Sunshine Coast University Hospital New public hospital on

450 20 hectares at beds by 2016, increasing Kawana, Sunshine Coast to 738 by 2021

$1.8 billion public private partnership 48 Healthcare Development

Department of Veteran’s Affairs Healthcare Center . Winston-Salem , first integrated service offering for Lend Lease - designing, building and operating expansive health care center in Kernersville under a 20-year lease . Expected to treat 34,000 veterans annually . 375,000 gross square feet, four storey center

49 US Development

Increase the volume of development projects undertaken in the US market

Focus residential, office and mixed-use sectors in core gateway cities

Leverage existing relationships in these cities and develop alongside joint venture partners or in our own capacity

Focus is to strengthen local capabilities and local market knowledge. Establish a track record to position for future major urban regeneration projects

Anticipate investing $200 - $300 million of equity in development projects in the next few years

50 US Development We are focusing on core gateway cities as these are the deepest, most diverse markets and have strong Boston urban regeneration drivers . Supportive economic drivers in education and healthcare/pharmaceutical

San Francisco . Tech-sector supports Chicago trend back to urban . Land prices remain New York Surrounds living attractive . High degree of resilience in property . Opportunities for . Opportunities for market urban regeneration urban regeneration . Strong economic conditions

Los Angeles . Corridors of growth in Dallas/Houston parts of the city . Substantial growth remain attractive underpinned by energy sector, but more relaxed planning laws 51 Capital model

Adopt a flexible capital model for US development opportunities . Fund in our own capacity; . Fund through partnership / joint-venture; or . Fund through General Partner (GP) / Limited Partner (LP) model, using non-recourse project specific debt

GP/LP Investment Structure Illustrative capital model in US development Returns Lend Lease and / or third Other Lend Lease party equity . GP/LP - Equal equity distribution until project achieves circa 10% IRR General Partner Limited Partners . Tiered returns to GP above 10% (Pre-construction equity) (construction equity) Benefits . Diversification risk Development Debt . Upside returns to GP Project . Leverages capital reach

52 Q&A HEALTHCARE & US DEVELOPMENT

Image: Bon Secours St Francis Medical Pavilion RISK MANAGEMENT 6 & CAPITAL ALLOCATION

Image: The Dock Library, Victoria Harbour, Melbourne Enterprise Risk Management Framework

. The Lend Lease Enterprise Risk Management framework, Key Objectives identifies, evaluates, Identification addresses, monitors, quantifies and reports material risks to the Risk Management and Audit Governance Growth Focus Committees Committees Assessment and Quantification Returns . 2014 – creation of a new Chief Risk Officer role reporting directly to the Continued learning and Response and Group Chief Executive improvement mitigation Officer incorporating Health & Safety, Risk & Insurance and the Centres of Excellence

55 Core components of Risk Management

Capital Allocation . Portfolio approach . Risk Adjusted Capital management . Benchmarked earnings based on risk profile

Focus / Execution Origination . Proactive risk . Targeted and disciplined management in delivery Focus / . Investment and risk . Strong safety and risk committee process Executionculture . KPI hurdle rates . Rapid issue resolution

56 Execution Risk Reducing the impact when a challenging issue occurs

Proactive Reactive

. Safety, health & wellbeing, sustainability & innovation investment . Dealing with an issue when it occurs . Project in Delivery (PiD) system enables . Implementing mitigation and contingency plans comparative measurement of performance, anticipation and flagging of potential issues . Dedicated, experienced resources available . Cost / time contingency, technical expertise

57 Capital Allocation Framework

We set capital and earnings benchmarks internally based on the risk profile of our portfolio

Group benchmarks

Return on Equity 12 - 15% Priorities Gearing Up to 20% . Ensure Group financial metrics 40% - 60% Dividend Payout Ratio drive long term value creation of Profit after Tax

Interest Coverage Ratio 5x . Set simple financial metrics and clear performance targets based on the risk profile Projects / Segment benchmarks

Development Construction Investments . Focus on securityholder value creation and strong cash flow Margin on Cost (MoC) ~15 - 20% ~2 - 12% ~30 - 40% incentivisation Return on Risk Adjusted ~17 - 20% ~20 - 25% ~12 - 20% Capital (RRC %)

Targeted metrics are adapted to relevant risk profile of the project and with respect to the position of the portfolio

58 Risk Adjusted Capital

As risk profile in each segment increases, we assign a higher capital charge and/or set a expected a higher margin

Development Construction Investments High Land / infrastructure = long dated At risk lump sum Value-add

Risk Production capital = medium

Finished goods Fee for service Core = low

Low

High Return Low

59 Development capital1

Capital requirement remains focused on production to maximise development earnings

Delivering to maximise value

2%

Unsold inc 26% 23% 21% Bluewater 34% 32% . Production cycle continuing in FY15

24% 21% 67% . Production capital returned during 28% 50% FY16 and FY17 Production 24% . Reinvestment will depend on pipeline 50% 56% of opportunities in FY17 and position 42% 40% Land & 29% 31% in the property cycle Infrastructure

FY9 FY10 FY11 FY12 FY13 FY14

Building the pipeline

In the medium term we will aim to build further pipeline through disciplined origination

1. Indicative view based on inventories at 30 June each Financial Year 60 Indicative net cash flow from major projects in-delivery

Overview FY15 FY16 FY17

Net cash proceeds Communities Cash Positive Cash Positive Cash Positive Assuming 2,500 annual lot settlements

Net cash proceeds Apartments Investing Cash Positive Cash Positive 19 apartment buildings currently in delivery

Net cash proceeds Commercial Barangaroo office towers – development and Investing Cash Positive Cash Positive investment; commercial tower at RNA; commercial tower at TIQ

Infrastructure Net cash invested Investing Investing Cash Positive Development Secured Australian PPP projects

Total Investing Cash Positive Cash Positive

All cash flow based on portfolio/investments at 30 June 2014 61 Q&A RISK MANAGEMENT & CAPITAL ALLOCATION

Image: The Dock Library, Victoria Harbour, Melbourne CLOSING AND FINAL Q&A 7

Image: Dr Chau Chak Building, UTS Sydney Strategic Outlook

. Understanding the property cycle and successful execution of our strategy since 2009 has delivered outperformance for our securityholders . Strong growth trajectory and earnings visibility over coming years, with embedded earnings in our existing pipeline . Established management team with proven track record . Evolution of our strategy . Diversified sources of income . Committed focus and disciplined execution to realise value . Enhanced risk and capital management framework . Disciplined growth through cycles

64

LEND LEASE Investor Day 2014 9 October 2014

Image: Artist Impression – 432 Park Avenue, New York