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Mark Menhinnitt Chief Executive Officer, Australia Business Update - Australia

Mark Menhinnitt Chief Executive Officer, Australia Business Update - Australia. Agenda. Overview of business environment Lend Lease in Australia Project Management & Construction Infrastructure Development Development – Mixed Use Development – Communities Overview of communities market

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Mark Menhinnitt Chief Executive Officer, Australia Business Update - Australia

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  1. Mark MenhinnittChief Executive Officer, AustraliaBusiness Update - Australia

  2. Agenda • Overview of business environment • Lend Lease in Australia • Project Management & Construction • Infrastructure Development • Development – Mixed Use • Development – Communities • Overview of communities market • Communities portfolio strategy update • Senior Living • Investment Management • Key priorities

  3. Overview of business environment 1. Overthe medium term 3

  4. Lend Lease in Australia • Project Management & Construction • Leading player in commercial and healthcare • Strong internal pipeline and healthcare opportunities • Infrastructure Development • Significant pipeline of private and public spend infrastructure • Development • Residential – leader in master planned urban communities/ well placed going into FY2012 • Large urban regeneration pipeline – will provide significant earnings from 2nd half FY2012 • Senior Living • Leading player in senior living market – focus on enhancing operational performance • Investment Management • Leading wholesale property platform in Australia • Access to capital partners to fund development pipeline Operating profit after tax as at31 December 2010* * Infrastructure Development not reflected in profit split as generated a small loss in 1st half FY2011 due to start up phase. Senior living contribution reported in Development. 4

  5. Project Management & Construction BER schools program 5

  6. Infrastructure Development South Australian Schools 6

  7. Development - Mixed Use Convesso, Victoria Harbour, Melbourne 7

  8. Development - Communities Varsity Lakes, Gold Coast, QLD 8

  9. Overview of communities market • Quality of enquiry at Lend Lease projects improving, however conversion time has increased on back of decline in sentiment • Affordability pressures continue to be driven by interest rate rises and higher living costs • Tightening bank lending criteria resulting in lower Loan to Value Ratios • Lend Lease product mix focused on affordable end of the market • Pricing and margins across Lend Lease portfolio remain resilient • Long term fundamentals are positive with strong underlying demand and ongoing stock shortfall and supported by solid employment outlook Source: Westpac-Melbourne Institute, RBA and Lend Lease Research Source: BIS Shrapnel 9

  10. Communities portfolio strategy update • Capital model to match size and nature of project – land management, joint ventures or direct ownership • New project acquisitions focused on replenishing existing portfolio in affordable growth corridors • Recent entry into WA market • Focus on product innovation and builder partnerships to deliver sales volume • Strong reputation in place, creation and delivery of key infrastructure to drive value and competitive advantage Mawson Lakes, SA Lakeside Pakenham, VIC Flexible business model and diverse geographic spread of projects 10

  11. Senior Living Woodlands Park, Berwick VIC 11

  12. Investment Management MidCity Centre, Sydney, NSW 12

  13. Key priorities • Grow construction backlog • Focus on health pipeline and convert internal opportunities • Leverage multi-sites/ capital services platform • Deliver key development projects • Achieve key planning outcomes, secure tenants and capital partners • Replenish communities backlog in key affordable markets • Continue to drive operational excellence across senior living platform • Simplify operating model in preparation for capital recycling • Continue to grow funds under management • Strong performance in existing funds is key 13

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