Lendlease Annual Report 2021

Acknowledgement of Country We acknowledge the Traditional Custodians of the land and pay our respect to them and their Elders past and present. As a business that works across many locations, we have a responsibility to listen, learn and walk alongside First Nations peoples so that our activities support their ongoing connection to their lands, waters, cultures, languages and traditions. We value their custodianship of 65,000 years. Lendlease presents its sixth integrated Annual Report to communicate how our business operates, our competitive advantage, and our performance and outlook. The future is now. As the world continues to navigate its way through the impacts of a global pandemic, the way we live, work, shop and interact is changing. Increasingly, governments and customers are looking to Lendlease to help reshape and innovate places which provide experiences. As we put our best foot forward to help communities thrive, we do so by A Year in Review 4 Chairman's Report Global Chief Executive Officer's Report FY21 snapshot Our Business 12 Purpose, value creation and global presence Strategy Operating segments A Sense of Place 20 Cities are the future Digitisation Milan Innovation District Melbourne Quarter Managing and Measuring Value 30  Health and Safety  Financial  Our Customers  Our People  Sustainability designing, delivering and curating places for generations to come. Suitably, the theme of this year’s Annual Report is ‘a sense of place’. At Lendlease, we have five focus areas that contribute to creating long term value for our securityholders and the broader community. Icons are used throughout the report linking our activities to this value creation. Contents About this report The Lendlease Annual Report 2021 has been prepared with reference to the International Integrated Reporting (IR) Framework that encourages businesses to consider what creates value for them and how this value contributes to long term sustainable returns for securityholders. Lendlease Corporation Limited ABN 32 000 226 228 Incorporated in NSW Australia 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 Materiality A matter is considered material if senior management and those charged with governance believe it could significantly impact the value created and delivered in the short, medium and long term. We identify and capture material matters through the following processes: • Project Control Group (PCG) sessions, which include key internal stakeholders and represent the governance structure for overseeing the completion of the Annual Report • Capturing feedback through engagement and research during the financial year from key external stakeholders including investors, analysts, and other relevant groups • Engagement with the Board • Confirming that the strategy is consistent and relevant with the information collected above. The outcomes of these processes are the material issues noted on page 32 and 33, and in the section Our Business on pages 12 to 19. Risk and Climate Related Resilience 46 Performance and Outlook 56 Governance 70 Board of Directors’ information and profiles Remuneration Report Directors’ Report Lead Auditor’s Independence Declaration Financial Statements 126 Other Information 200 Corporate directory Securityholder information Glossary Front cover: Sydney: Darling Square on Gadigal Country and Wangal Country This page: Sydney: Victoria Cross on Cammeraygal Country Artist's impression1 Directors’ Report and Operating and Financial Review (OFR) The required elements of the Directors’ Report, including the OFR, are featured on pages 4 to 125 of this report and include the sections A Year in Review, Our Business, A Sense of Place, Managing and Measuring Value, Risk and Climate Related Resilience, Performance and Outlook, and Governance. The OFR is covered specifically on pages 4 to 69. All non financial metrics included in the Directors’ Report on pages 4 to 55 have been verified through our internal verification process. The Remuneration Report on pages 84 to 121 and the Financial Statements on pages 126 to 191 have been audited by KPMG. Reporting suite Our reporting suite provides information about the organisation and its key financial and operational achievements including: • The Annual Report Features information about Lendlease, our strategy, integrated financial and operational performance, corporate governance, Directors’ Report, Remuneration Report and Financial Statements • Biannual Results Presentation The current reporting period’s financial results and detailed segment information for projects including major urbanisation projects, investments and pipeline • www.lendlease.com Includes additional information on sustainability reporting, corporate governance, tax compliance and historical financial information. 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. 3 Lendlease Annual Report 2021