Lendlease Annual Report 2022

120 Lendlease Annual Report 2022 Notes to Consolidated Financial Statements continued The following table provides information on the Return on invested capital for the Investments and Development segment. Construction is excluded from the table below on the basis that its main operational metric is EBITDA margin. JUNE 2022 JUNE 2021 Investments $m Development $m Remaining Group $m Total Group $m Investments $m Development $m Remaining Group $m Total Group $m Net assets 3,789 5,262 (2,081) 6,970 3,653 4,214 (916) 6,951 Less: Cash and cash equivalents (140) (91) (1,066) (1,297) (29) 89 (1,722) (1,662) Less: Other financial liabilities 1 - 129 130 2 - 35 37 Less: Borrowings and financing arrangements 7 206 2,144 2,357 7 113 2,237 2,357 Invested capital at end of year 3,657 5,377 3,633 4,416 Invested capital at half year 3,931 5,018 3,584 4,991 Invested capital at beginning of year 3,633 4,416 3,670 4,778 Average invested capital 3,740 4,937 3,629 4,728 Operating profit after tax 1 361 111 213 342 Return on invested capital 2 9.7% 2.2% 5.9% 7.2% 1. Operating profit after tax per segment has been derived from the tables on the previous pages. 2. Return on Invested Capital is calculated using the Operating Profit after Tax divided by the arithmetic average of beginning, half year and year end invested capital. The following table provides information on the Group's Return on equity: June 2022 June 2021 $m $m Equity attributable to securityholders at end of year 6,943 6,927 Equity attributable to securityholders at half year 6,654 6,953 Equity attributable to securityholders at beginning of year 6,927 6,907 Average equity attributable to securityholders 6,841 6,929 Core operating profit after tax 276 377 Operating return on equity 1 4.0% 5.4% Statutory profit after tax (99) 222 Statutory return on equity 2 (1.4)% 3.2% 1. Operating return on equity is calculated using the Core operating profit after tax divided by the arithmetic average of beginning, half year and year end securityholders’ equity. 2. Statutory return on equity is calculated using the Statutory profit after tax divided by the arithmetic average of beginning, half year and year end securityholders’ equity. The following table provides a reconciliation of Core operating earnings per stapled security to the Total Group statutory earnings per stapled security: CENTS PER STAPLED SECURITY Note June 2022 June 2021 Core operating earnings per stapled security 40.1 54.8 Non core operating earnings per stapled security (3.5) (26.3) Total Segment operating earnings per stapled security 36.6 28.5 Total adjustments (after tax) to reconcile to statutory profit 1 (51.0) 3.8 Total Group statutory earnings per stapled security 3 (14.4) 32.3 1. The total adjustments (after tax) is calculated using the Total adjustments of $(493) million (June 2021: $19 million) and Income tax benefit/(expense) on adjustments of $142 million (June 2021: $7 million) divided by the weighted average number of stapled securities on issue. Section A. Performance continued 1. Segment Reporting continued 1.a. Business Segment Information continued