Lendlease Group 2021 Annual Report
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16 August 2021 Lendlease Group 2021 Annual Report Lendlease Group today announced its results for the year ended 30 June 2021. Attached is the 2021 Annual Report, including: § Directors’ Report § Remuneration Report § Financial Statements ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: Investors: Media: Justin McCarthy Stephen Ellaway Mob: +61 422 800 321 Mob: +61 417 851 287 Authorised for lodgement by the Lendlease Group Disclosure Committee For personal use only 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 A sense of place Lendlease Annual Report 2021 For personal use only Lendlease Annual Report 2021 3 About this report Materiality Directors’ Report and Operating and Acknowledgement of Country Financial Review (OFR) The Lendlease Annual Report 2021 has A matter is considered material if senior We acknowledge the Traditional Custodians of the land and pay our respect to been prepared with reference to the management and those charged with The required elements of the Directors’ them and their Elders past and present. International Integrated Reporting (IR) governance believe it could significantly Report, including the OFR, are featured As a business that works across many locations, we have a responsibility to listen, Framework that encourages businesses to impact the value created and delivered on pages 4 to 125 of this report and learn and walk alongside First Nations peoples so that our activities support their consider what creates value for them and in the short, medium and long term. include the sections A Year in Review, ongoing connection to their lands, waters, cultures, languages and traditions. how this value contributes to long term We identify and capture material matters Our Business, A Sense of Place, sustainable returns for securityholders. through the following processes: Managing and Measuring Value, Risk and We value their custodianship of 65,000 years. Climate Related Resilience, Performance • Project Control Group (PCG) sessions, and Outlook, and Governance. which include key internal stakeholders and represent the governance structure The OFR is covered specifically on pages for overseeing the completion of the 4 to 69. All non financial metrics included Annual Report in the Directors’ Report on pages 4 to 55 have been verified through our internal • Capturing feedback through verification process. The Remuneration engagement and research during Report on pages 84 to 121 and the the financial year from key external Financial Statements on pages 126 to 191 stakeholders including investors, Contents have been audited by KPMG. analysts, and other relevant groups • Engagement with the Board Reporting suite • Confirming that the strategy is consistent and relevant with the Our reporting suite provides information information collected above. about the organisation and its key financial and operational achievements Lendlease presents its sixth integrated Annual Report to The outcomes of these processes are the including: material issues noted on page 32 and 33, communicate how our business operates, our competitive and in the section Our Business on pages • The Annual Report advantage, and our performance and outlook. 12 to 19. Features information about Lendlease, our strategy, integrated financial and operational performance, corporate The future is now. As the world continues designing, delivering and curating places governance, Directors’ Report, to navigate its way through the impacts of for generations to come. Suitably, the Remuneration Report and Financial a global pandemic, the way we live, work, theme of this year’s Annual Report is Statements shop and interact is changing. ‘a sense of place’. • Biannual Results Presentation The current reporting period’s Increasingly, governments and customers At Lendlease, we have five focus areas financial results and detailed segment are looking to Lendlease to help reshape that contribute to creating long term value information for projects including major and innovate places which provide for our securityholders and the broader urbanisation projects, investments experiences. community. Icons are used throughout the report linking our activities to this and pipeline As we put our best foot forward to value creation. • www.lendlease.com help communities thrive, we do so by Includes additional information on sustainability reporting, corporate governance, tax compliance and historical financial information. A Year in Review 4 Risk and Climate Related Resilience 46 Chairman's Report Performance and Outlook 56 Global Chief Executive Officer's Report FY21 snapshot Governance 70 Board of Directors’ information and profiles Our Business 12 Remuneration Report Purpose, value creation and global presence Directors’ Report Strategy Lead Auditor’s Independence Declaration Operating segments Financial Statements 126 A Sense of Place 20 Cities are the future Other Information 200 Corporate directory Digitisation For personal use only Securityholder information Front cover: Milan Innovation District Sydney: Darling Square Lendlease Corporation Limited Glossary on Gadigal Country and ABN 32 000 226 228 Melbourne Quarter Wangal Country Incorporated in NSW Australia Managing and Measuring Value 30 This page: Lendlease Responsible Entity Limited Sydney: Victoria Cross on ABN 72 122 883 185 | AFS Licence 308983 Health and Safety Our People Cammeraygal Country as responsible entity for Lendlease Trust Artist's impression1 ABN 39 944 184 773 | ARSN 128 052 595 Financial Sustainability Our Customers 1. Artist’s impression of Victoria Cross, Level 29 Terrace. Artist’s impression and views are indicative only as at June 2021 and subject to planning and other approvals. Prospective lessees should make their own enquiries as to surrounding developments, both current and future, including any impacts they may have on view lines from Victoria Cross. 4 A sense of place Lendlease Annual Report 2021 A Year in Review 5 A Year in Review The uncertainties and impacts of COVID-19 (COVID) left no person, community or country untouched. Our results tell a story of a Lendlease impacted by the pandemic, and that of an organisation that continued to make a positive contribution to the lives of people across our regions, and to the planet. These past 12 months were marked by challenges and opportunities to learn. However, we never lost sight of the very reason we exist – our purpose. We remained committed to finding the best ways to create value and make a difference. We won new projects, secured new partnerships and delivered work across our pipeline. We took on some bold missions for the sake of the environment and got well underway to achieving our sustainability targets. We also continued to build our digital capability as we work to be the best in the industry. We did this with an uncompromised approach to the safety, health and wellbeing of our people and all those who interacted with our places. For personal use only Boston: Clippership Wharf 6 A sense of place Lendlease Annual Report 2021 A Year in Review 7 The Board’s focus has been to guide the organisation Chairman’s through a very uncertain operating environment and assist management to advance the Group’s long Report term strategic objectives. As an international real estate These challenging conditions had The Board oversaw the ongoing review a negative impact across our core and subsequent refinement to our Global group operating in targeted businesses in all regions. We have given Minimum Requirements (GMRs). Each the Board appointed Tony Lombardo as During the year, we continued to focus Sustainability gateway cities globally, the specific examples in the Annual Report of member of the Board, as well as our people Global Chief Executive Officer, effective on our program of Board renewal – This year Lendlease launched a global 1 June 2021. Tony has more than 25 in particular, identifying a new Non COVID pandemic continued how each of Development, Construction globally, undertook mandatory training campaign, ‘Mission Zero’ to raise and Investments have been impacted. In to understand how the updated GMRs years’ global experience working across Executive Director with deep skills in our awareness about our ambition to reach to significantly impact the context of this environment, it is a support the continual improvement of the real estate development, investment core operating segments. Net Zero Carbon by 2025 and Absolute management, finance and mergers and Lendlease during the past testament to both the resilience of the safety environment at our workplaces. Executive Reward Strategy Zero Carbon by 2040. These targets set a Lendlease business model and the hard acquisitions. This experience, including Financial Result In response to investor feedback on our global benchmark for our sector and we year. And many of the cities in work and dedication of our people across roles at Lendlease as CEO Asia and Group FY20 Executive Reward Strategy (ERS), are making a conscious decision to be a the globe that your company achieved Lendlease reported a Statutory Profit after CFO, make him eminently qualified to which we operate were forced our planned review of remuneration leader in driving industry