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Lend Lease Securityholder Review 2011

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Lend Lease Securityholder Review 2011 LEND LEASE SECURITYHOLDER REVIEW 2011 QUICK FACTS & HIGHLIGHTS Lend Lease achieved earnings growth across all regions and continued to build a strong development pipeline n New infrastructure business in Australia following acquisition of Abigroup, Baulderstone and Conneq n Over 17,000 employees, an increase of over 6,000 employees from the 2010 financial year n Funds under management of $10.9 billion n Credit rating (Standard & Poor’s/Moody’s) of BBB-/Baa3 (stable) Asia Americas Asia Americas Asia Americas 50% 31% 9%EMEA Australia EMEA Australia EMEA Australia increase increase increaseInfrastructure Millions of hours worked Infrastructure Millions of hours worked Infrastructure Millions of hours worked 500 10120 250 1080 250 10 250 Operating 460 1139 225 729 225 9 225 Profit after .0 .0 420 77 10677 8 200 648 200 8 200 485.3 1.4 7 8. Tax ($ million) 11 380 997 175 567 175 7 175 445.9 10 435.9 Earnings per Distribution per $161.7m 340 Security (cents) 926 Security (cents)150 486 150 6 150 300 855 125 405 125 5 125 260 784 100 324 100 4 100 323.6 20.5c 2.9c .4 85.6 1 0 41.0 1 67 291.7 220 713 75 243 75 3 75 65. 35. 32. 180 642 50 162 50 2 50 140 571 25 18 25 1 25 07 08 09 10 07 08 09 10 07 08 09 10 11 11 11 100 500 07 08 09 10 11 0 00 07 08 09 10 11 0 0 07 08 09 10 11 0 n Profit growth in all regions n The Group achieved milestones n 41 perNotes cent of Operating Profit Notes Notes contributed to an increase in on major projects and after• TaxAustralian was financial distributed year (July - June )to • Australian financial year (July - June) • Australian financial year (July - June) Operating Profit after Tax of recycled assets. securityholders.• EMEA - Europe and Middle East • EMEA - Europe and Middle East • EMEA - Europe and Middle East 50 per cent. • Lend Lease Infrastructure commenced reporting • Lend Lease Infrastructure commenced reporting • Lend Lease Infrastructure commenced reporting incidents to Lebd Lease Group from March 1, incidents to Lebd Lease Group from March 1, incidents to Lebd Lease Group from March 1, n For definitions of metrics refer to Glossary on page 28. 2011. No incidents by Lend Lease Infrastructure- 2011. No incidents by Lend Lease Infrastructure- 2011. No incidents by Lend Lease Infrastructure- n Comparative information in respect of FY07, FY08 and FY09 reflect the results in Lend Lease Corporation Limited and its controlledfor entitiesthe period prior prior to to stapling March 1, of 2011 the have been for the period prior to March 1, 2011 have been for the period prior to March 1, 2011 have been Lend Lease Trust in November 2009. includedin the Lend Lease Group statistics includedin the Lend Lease Group statistics includedin the Lend Lease Group statistics TABLE OF CONTENTS Cover Image: Darling Quarter, Sydney, Australia 1 Strategic Direction 2 About Lend Lease All financial amounts in this report are in Australian Dollars unless otherwise specified 4 Chairman’s Report 5 Chief Executive Officer’s Report 6 Trends Underpinning Strategy 7 Progress on Strategy 8 Safety Lend Lease Corporation Limited 10 Review of Operations ABN 32 000 226 228 24 Sustainability Incorporated in NSW Australia and Lend Lease Responsible Entity Limited 26 Directors’ Profiles ABN 72 122 883 185 AFS Licence 308983 as responsible 27 Remuneration Summary entity for Lend Lease Trust 28 Glossary ABN 39 944 184 773 ARSN 128 052 595 29 Corporate Directory Lend Lease Group SECURITYHOLDER REVIEW 2011 1 STRATEGIC DIRECTION Lend Lease is committed to becoming the leading international property and infrastructure group We will only operate in sectors and locations where we have core capabilities that enable us to establish a competitive value proposition. This is how we are creating long term value for securityholders. Leading International Sectors Capabilities We aim to be one Our operations are Our key sectors Lend Lease has core of the top three centred around four are property and capabilities in the businesses in our regions. infrastructure. sectors we operate in. chosen markets We operate and invest in n Development and sectors. AUSTRALIA sub-sectors that fit with our core capabilities. n Investment management We will achieve industry leading n Construction positions through disciplined growth and diversification in PROPERTY n Asset & property management selected markets. The acquisition of Valemus Australia, comprising Abigroup, Baulderstone and Conneq, provides Lend Lease with new capabilities in the engineering and construction market in Australia. ASIA We operate in property Our strong skills and experience sub-sectors that include: across these capabilities enable us n Commercial to provide end-to-end solutions to our clients. n Residential n Retail SEE NEXT PAGE n Retirement FOR MORE DETAIL n Industrial INFRASTRUCTURE AMERICAS We operate in infrastructure sub-sectors that include: n Social e.g. health n Economic e.g. roads EUROPE, THE MIDDLE EAST & AFRICA (EMEA) SEE PAGES 14-23 Lend Lease Group 2 SECURITYHOLDER REVIEW 2011 ABOUT LEND LEASE Lend Lease is a leading, Our projects span all key sectors from Sustainability leadership retail and commercial to residential Sustainability has always defined fully integrated international and retirement. We’re also involved the way we do business. We consider property and infrastructure in partnerships with the public sector the environmental, social, ethical and to deliver essential infrastructure such group with operations financial impacts of every decision we as hospitals and military communities make. We strive to do meaningful work in Australia, Asia, the through the Public Private Partnerships that protects our natural environment, (PPP) procurement model. Americas, Europe and the supports responsible economic growth Middle East. Using a truly collaborative approach, and improves the quality of people’s lives. we guide clients and investors beyond We work with clients and investors just maximising value to safe, innovative Our values on everything from funding a project and sustainable solutions. We combine our global expertise with best practice Our values underpin the way we do right through to developing and business. They drive the way we engage constructing state-of-the-art buildings and project management and a strong understanding of local markets. We with each other, our clients, partners and infrastructure, including hospitals, roads stakeholders. and rail. We also create vibrant residential work in partnership with our clients, stakeholders and the wider community communities, productive workplaces and n Respect attractive retail destinations. to deliver projects with the best possible outcomes for everyone. n Integrity We can do this because Lend Lease n Innovation offers the complete range of services across the property and infrastructure n Collaboration spectrum including development; n Excellence investment management; construction; and asset & property management. n Trust OUR VALUE CHAIN FROM THE BIG PICTURE TO THE MINUTE DETAIL WE FIND WE BUY WE FUND WE DESIGN Sourcing the best Structuring the Providing the right Creating innovative property opportunities right deal investment solutions and sustainable property solutions DEVELOPMENT INVESTMENT CONSTRUCTION MANAGEMENT PROPERTY Lend Lease Group SECURITYHOLDER REVIEW 2011 3 Our aim is to be the leading international property and infrastructure group SAFETY FIRST Lend Lease is committed to operating Incident & Injury Free wherever we have a presence. This is central to our business approach and it is embedded in all our decision-making. To assist us in achieving our vision we have developed a set of operating disciplines and specific environmental, health and safety leadership behaviours, all of which are aimed at ensuring those who work with us and for us operate in a manner which ensures we never compromise on our vision. This year we made significant progress in our efforts to further develop our people in the area of safety. Our Uncompromising Leadership program is aimed at providing our leaders with the necessary tools for them to do the right thing, all of the time, every time. Over the past five years, we have achieved a material improvement in our incident frequency rates and have significantly reduced our fall of person incidents by 80 per cent. We deeply regret however that one person lost his life this year in the Australian infrastructure WE BUILD WE MANAGE business. Our Asia, EMEA and Americas businesses reported no fatalities in the last financial year. Project management, Continually building and engineering with our enhancing the value We believe that safety transcends individuals and companies. international construction reach of property over time We will not compromise on safety because achieving our Incident & Injury Free vision is in everyone’s interest. ASSET & PROPERTY MANAGEMENT SEE PAGES 8-9 INFRASTRUCTURE Lend Lease Group 4 SECURITYHOLDER REVIEW 2011 CHAIRMAN’S REPORT Group strategy Outlook The Group remains committed to becoming Having focused on building a solid platform a leader in the markets and sectors that we over the past few years, Lend Lease is in operate in and has a clear strategy to realise a very good position. While uncertainty the long term potential of our business. The remains in global markets, particularly most significant achievement in the period Europe, we have a prudent strategy for has been the acquisition of the Valemus growth in all our regions. Our financial result businesses, Abigroup, Baulderstone and this year clearly demonstrates that we are Conneq, that together form Lend Lease’s pursuing the right strategy. infrastructure business in Australia. This transaction is in line with our strategy to grow in the infrastructure sector and it has secured us an excellent platform in Lend Lease delivered earnings growth in the engineering and construction market all regions despite economic uncertainly in Australia. in global markets.
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