31 August 2020 Lendlease Strategy Update Attached is the presentation to be given today by Steve McCann, Group Chief Executive Officer and Managing Director, Lendlease and Tarun Gupta, Group Chief Financial Officer, Lendlease. The presentation will be webcast live at 10:30am (AEST) via www.lendlease.com 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. 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 Sydney: Barangaroo South Looking ahead Lendlease Strategy Update 31 August 2020 Lendlease Market Briefing Strategy 2 Acknowledgement of Country As a developer, builder and manager of assets on land across Australia, we pay our respects to the traditional owners, especially their elders past and present, and value their custodianship of these lands. Lendlease Market Briefing Strategy 3 Strategy Update Steve McCann Group Chief Executive Officer and Managing Director Kuala Lumpur: The Exchange, TRX (Artist’s impression) Lendlease Market Briefing Strategy 4 Strategy highlights Leverage Increased Accelerate Scale competitive edge focus development investments Global placemaking Prioritise capital and people $8+ billion of production p.a. $50+ billion FUM opportunity from resources to Development uplift >80% on historical rates secured development pipeline End to end capability and Investments focus areas c.90% of production for New products and external Proven track record next 5 years planning opportunities approved Higher capital allocation Improve earnings quality Higher annuity earnings | Programmatic investment partnerships | Operating profit focus Lendlease Market Briefing Strategy 5 Transformational A decade of shift June June transformation 2009 2020 Geographic 40+ 17 focus Countries gateway cities Major urbanisation 2 21 projects1 Urbanisation $11 $99 pipeline billion billion2 Total $30 $113 development 2 pipeline billion billion Construction $12 $14 backlog billion billion Funds under $10 $36 management billion billion Singapore: Paya Lebar Quarter 1. Projects with an estimated development end value greater than $1 billion. 2. Remaining estimated development end value. Lendlease Market Briefing Strategy 6 London • Our global Thamesmead Waterfront • Euston Station • Silvertown Quays • International Quarter London Chicago • Elephant Park • High Road West footprint • Southbank • Deptford Landings • Lakeshore East Milan • Boston Milano Santa Giulia Rome New York San Francisco • Milan Innovation District Beijing • San Francisco Bay Area Project Los Angeles Tokyo • 30 Van Ness Shanghai Kuala Lumpur • The Exchange TRX Singapore Development Construction Funds under Assets under Brisbane • pipeline backlog revenue management management Brisbane Showgrounds $113 billion1 $14 billion $36 billion $29 billion Perth Sydney • Waterbank • Barangaroo South • Sydney Place Melbourne • Victoria Cross over station development • Melbourne Quarter • Victoria Harbour Map illustrates 1 7 targeted gateway cities and highlights major urbanisation projects with an estimated development end value greater than $1 billion. 1. Remaining estimated development end value. Lendlease Market Briefing Strategy 7 Our business model is designed to Strategy withstand real estate cycles, while resilient to an being agile to adapt to market changes. evolving market environment This resilience is underpinned by our: • Placemaking, urbanisation depth and mixed use capabilities providing a competitive edge – a proven track record of success • Capital efficient land funding and delivery model • Ability and flexibility as a product creator, to adapt as well as define products as markets and customer preferences evolve COVID-19 stress testing of strategy • Depth and breadth of investment management skills confirms resilience of business model • Access to quality investment partners • Scenario planning undertaken to enhance decision making during COVID-19 uncertainty Resilience demonstrated in current environment: • Fundamental assumptions that underpin the • CPP Investments New buildings launched strategy and strategic shifts tested • Aware Super within existing partnerships • Increased focus on areas where competitive • PSP Investments ​ San Francisco: New partnerships formed edge strongest reinforced 30 Van Ness • Mitsubishi Estate (Artist’s impression) Lendlease Market Briefing Strategy 8 Strategy Industry Expected • Fundamental drivers of urbanisation to remain resilient to an real estate • Market dislocation anticipated to trends provide opportunities evolving market • Digital disruption likely to accelerate • Capital allocations to real estate environment anticipated to rise over time Sectors Residential: • Strong growth in build to rent sector • Structural undersupply to drive longer term performance • Quality and amenity key Office: • Workplace design and innovation key to corporate culture • Potential hub and spoke adoption supports urbanisation footprint • Repositioning opportunities Retail: • Sydney: Structural headwinds for retail – Darling Square mixed use conversion opportunities Lendlease Market Briefing Strategy 9 Our purpose Together we create value through places where communities thrive The Lendlease purpose statement represents our organisational why. It acknowledges our rich history and our future direction. Lendlease Market Briefing Strategy 10 Our strategy | the next decade Employ our placemaking expertise Busin ted ess M gra o te de and integrated business model in global In l D ts e n v e e l o m t p gateway cities to deliver urbanisation s m e e v Thriving n n I projects and investments that generate communities t social, environmental and economic value C onstruction P d rov or en Track Rec Strategic priorities Leverage Best practice Accelerate Scale Leadership in competitive construction development investments sustainability edge delivery Secured 2009 Sydney: Barangaroo Lendlease Market Briefing Strategy 11 Leverage competitive edge Secured 2009 Secured 2010 Sydney: Darling Harbour precinct London: Elephant Park Proven track record Secured 2001 Melbourne: Victoria Harbour Secured 2010 Secured 2015 London: International Quarter London Boston: Clippership Wharf Secured 2015 Secured 2015 Singapore: Paya Lebar Quarter Chicago: Southbank Lendlease Market Briefing Strategy 12 Leverage competitive edge Placemaking is in our DNA Place is not a product; it is an emotional attachment to a Brisbane: Yarrabilba location. The places we create are meaningful, vibrant and enduring. We are Place creation requires a combination of global placemakers competence with authentic local engagement. and value It means having the skill to not only define the creators best of all possibilities but the discipline to deliver that vision sustainably and in partnership with the community. Our investment in digital capabilities will enable us to enhance our customer experience. We see value others overlook. Boston: Clippership Wharf London: Elephant Park Lendlease Market Briefing Strategy 13 Leverage competitive edge End to end capability Development Construction Investments • Placemaking in urban environments • Delivery capability supports integrated model ​​ • Access to institutional grade investment product from pipeline • Capital efficient business model • Specialist expertise and relationships in target sectors • Strong relationships with institutional capital partners • Long term investment partnerships • Deep project management skills and experience • Differentiated real estate skills to add value at asset level • Scale across gateway cities • Trusted fiduciary and governance structures Competitive edge to underpin substantial growth in strategic focus areas Large scale mixed use urbanisation projects Investments platform Leadership position as the partner of choice Global scale in real estate investment management Diversification across gateway cities and product type Development pipeline to provide significant growth opportunity Proven track record to unlock future opportunities Launch new products and pursue market growth opportunities alongside investment partners Prioritise capital and people resources to Development and Investments focus areas Lendlease Market Briefing Strategy 14 Accelerate development Material uplift in production as projects enter delivery Annual Development production rate ($b)1 $8b+ Targeting $8b+ of production p.a., >80% increase on historical rates >80% $4.3b Uplift supported by: • Pipeline planning certainty • Market size and absorption • Investment partner appetite FY16-20 ave. New Target Planning milestones Market absorption Investment partner appetite • More than 60% of $113b development pipeline • Large market size of each city supports • c.150 institutional investment partners secured in the last 3 years production outlook • Top 20 relationships account for two thirds of equity • Origination to planning approval typically 2-3 years • Pipeline of development projects across in platform • Recent planning achievements and progress: 12 gateway cities: • Heavily weighted towards investors from: – – Milano Santa Giulia, South – approved Sydney,