Lend Lease by benbenzhou


									Lend Lease   Creating sustainable landscapes
             2009 Annual Shareholder Review
ImPortant DateS                                                                                 Performance
In 2010                                                                                         at a glance for 2009

                                                                                                Operating profit after tax1 Full year dividend3
                                                                                                $307.5M                                   41¢

February* Announcement of Half Year Results                                                     Statutory loss after tax                  Gearing4
              Share price quoted ex dividend
                Interim dividend record date
                                                                                                ($653.6M)                                 2.9%
March*              Interim dividend payable
August*    Announcement of Full Year Results
August*       Share price quoted ex dividend
                                                                                                Earnings per share2                       Credit rating
August*           Final dividend record date
September*             Final dividend payable                                                   72.5¢                                     BBB-/Baa3
November*            Annual General Meeting                                                                                                Standard & Poor’s/Moody’s

* Exact dates will be confirmed on the Lend Lease website Investor Relations section at
  www.lendlease.com in due course.
                                                                                              1. Operating profit after tax excludes    3. Dividends include interim dividend
                                                                                                 non operating adjustments.                of 25 cents franked to 60% and final
                                                                                              2. Calculated based on operating profit      dividend of 16 cents franked to 100%.
                                                                                                 after tax and total weighted average   4. Calculated as net debt including other
                                                                                                 number of shares on issue including       non current financial liabilities, divided
                                                                                                 treasury shares.                          by total tangible assets, less cash.

Lend Lease Corporation Limited ABN 32 000 226 228

                                                                                                                                          Lend Lease is a member of the Dow Jones

Lend Lease
                                                                                                                                          Sustainability World Index which is used by DJSI
                                                All financial amounts in this report are in                                               licensed asset managers to manage investments
                                                Australian Dollars unless otherwise stated                                                worth close to US$8 billion each year.
About                                   with strong development
                                        management, investment
                                                                         We primarily operate in
                                                                         Australia, Asia, the UK, Europe,
Lend Lease                              management, project and          the Middle East and the US,
                                        construction management          and have built up a long and
Lend Lease                              and asset and property           successful track record in
is one of                               management capabilities.         these countries, creating many
                                                                         iconic and admired precincts,
the world’s                             Our philosophy
                                        Founded in Sydney in 1958        spaces and buildings.
leading fully                           by Dutch immigrant and           Sustainability has been an
                                        innovator Dick Dusseldorp,       integral part of our culture,
integrated                              the group was born out of        as we believe every action
property                                a vision to create a company
                                        that could successfully
                                                                         adds up. Through design
                                                                         and investment in new
solutions                               combine four disciplines;        technologies, we are
providers,                              property, financing,
                                        development and investment.
                                                                         committed to delivering the
                                                                         next generation of sustainable
                                        Lend Lease’s vision is to        property solutions. We are
                                        be the leading international     committed to being Incident
                                        property company.                & Injury Free wherever we have
                                        We are committed to creating     a presence. This philosophy
                                        and building innovative and      reaches every part of our
                                        sustainable solutions, forging   operations and extends to
                                        partnerships and delivering      employees, partners, clients,
                                        strong investment returns.       suppliers and subcontractors.

                                        IntrOducIng Our peOpLe
meet sOme                               thrOugh the effOrts Of Our OutstAndIng peOpLe,
Of Our peOpLe                           Lend LeAse tAkes A LeAdershIp rOLe In suppOrtIng
On pAges 16–25.                         InnOvAtIOn And InspIrIng chAnge sO Our Industry
www.lendlease.com/sustainability/pdf/   cAn cOntrIbute tO ecOnOmIc grOwth, ecOLOgIcAL
From_Aspirations_to_Actions.pdf         bALAnce And sOcIAL prOgress.
highlights                           Operational
                                     construction backlog
                                                                   primarily due to the
                                                                   acquisition of the
five-year                            gross profit margin           Lend Lease Primelife
                                   •		 lobal	construction	         management rights.
performance                          backlog gross profit margin   development pipeline
                                     as at 30 June 2009 was        L
                                                                 •		 end	Lease	continues	to	
                                     $690.1 million, which         have a strong development
                                     provides a solid earnings     pipeline, securing
                                     base for FY2010.              preferred bidder status
                                     funds under management        on the $2.5 billion RNA
                                   •		 unds	under	management	      Showgrounds project in
                                     increased to $9.9 billion,    Brisbane during the year.

Dividends per share1                   Contribution to operating profit after tax from business units*

                                       7% Investment Management
                                       14% Retail

                                       21% Communities


                                       18% Public Private Partnerships

                                       40% Project Management and Construction



 05 06 07 08 09

       Interim           Final     *   Before corporate and non operating adjustments.
  financial                       balance sheet strength
  continued strong                A
                                •		 s	at	30	June	2009,	our	net	
  performance                     debt to total tangible assets,
•		 arnings	per	share	of	         less cash was 2.9% and
  72.5 cents, down 33%            our weighted average debt
  in line with lower Net          maturity on drawn debt
  Operating Profit after Tax.     was eight years, with the
•		 ividend	per	share	of	
  D                               earliest maturity date being
  41 cents, representing          November 2010.
  a payout ratio of 61%           I
                                •		nterest	cover	was	5.2	times,	
  of operating profit after tax. in line with management
                                  target of 5 times.

  Operating profit after tax2                          Dividend payout ratio2                              Earnings per share3

  $307.5m                                              61%                                                 72.5¢




   05 06 07 08 09                                       05 06 07 08 09                                      05 06 07 08 09
                                                     2. Operating profit after tax excludes unrealised
                                                        property investment revaluations, inventory         to future accrual. These are referred to as
                                                        carrying value adjustments, goodwill                ‘non operating adjustments’.
1. 2009 dividends include interim dividend of           impairments, other carrying value adjustments,   3. Calculated based on operating profit after tax and
   25 cents franked to 60% and final dividend           savings implementation costs and a net gain         total weighted average number of shares on issue
   of 16 cents franked to 100%.                         on closure of the Bovis UK pension scheme           including treasury shares.
Our value                                     the Lend Lease value proposition is very
proposition                                   simple – we see more value in property.
                                              Our integrated property model and strategy
                                              allow us to see more value opportunities
                                              in each property project, which means
                                              we should be able to achieve higher returns
                                              on capital for our shareholders, our partners
                                              and our clients.

1. Mission Health System – Dogwood            Our approach                     core competency                 knowledge and experience
Surgical and ICU Tower, Asheville, North      generating multiple              unique asset creation           global and local property
Carolina, USA 2. Signature Place, Tampa,
Florida, USA 3. New York-Presbyterian         earnings opportunities:          capabilities: Lend Lease’s      expertise: Lend Lease’s ability
Hospital – Vivian and Seymour Milstein        Lend Lease’s integrated          fully integrated capabilities   to attract the best people,
Family Heart Center, New York, USA            end-to-end property solutions,   span the property value         combined with its deep
4. One Rincon, San Francisco, California,
USA 5. Dock 5, Victoria Harbour,              combined with its approach       chain, creating sustainable     market knowledge, underpins
Melbourne, Australia 6. The Gauge, Victoria   to partnering and diverse        property solutions.             long-term earnings potential.
Harbour, Melbourne, Australia 7. Lonza        project pipeline, maximise
Plant 1, Singapore 8. 201 Bishopsgate                                          Agility and flexibility         Innovation
and Broadgate Tower, London, UK 9. 200        returns on capital for
                                                                               maximising opportunities        Optimising value over
Aldersgate, London, UK 10. The Curve,         shareholders and partners.
Leicester, UK                                                                  through market cycles:          the long term: Lend Lease
                                                                               Lend Lease’s model is           is committed to providing
                                                                               flexible and agile, allowing    leadership in innovation
                                                                               the group to respond quickly    and sustainable
                                                                               and strategically at each       property solutions.
                                                                               stage of the property cycle.

Contribution to                Americas       Asia Pacific       Europe
operating profit
after tax bY                   30%                55%            15%
geograpHY from
business units








chairman’s   the year ended June 2009
             Against the unprecedented market
                                                       Steve ran the Group’s global
                                                       Investment Management business
report       conditions, the Group delivered
             operating profit after tax of
                                                       from September 2005 and was
                                                       appointed Finance Director from
                                                       March 2007 before being appointed
             $307.5 million, slightly above guidance
                                                       CEO in December 2008. Prior to joining
             given on 11 May 2009 of operating
                                                       Lend Lease he had been a long-term
             profit after tax of circa $300 million
                                                       financial adviser to Lend Lease. He has
             for the year. The earnings decline
                                                       a deep understanding of our business.
             compared to the prior year was
             primarily due to a lower contribution     Lend Lease is well placed to deliver
             from capital recycling and subdued        improving value for shareholders as
             conditions in the Australian and UK       we work towards that objective and
             residential markets.                      conditions improve. The Company
                                                       has significant headroom under its
             Lend Lease reported a statutory
                                                       banking covenants and its capital
             loss after tax for the year of
                                                       position was enhanced by the
             $653.6 million, reflecting net
                                                       $302.5 million of equity issued earlier
             write-downs and charges.
                                                       in the year. As a result, Lend Lease
             Directors declared a final dividend       has the capacity today to fund all of
             of 16 cents, franked to 100%,             its committed development pipeline
             representing a payout ratio of 61%        over the next three years, with cash
             of operating profit after tax for the     and cash equivalents of over $1 billion
             full year ended 30 June 2009.             and strong underlying cash flows.

             Looking ahead                             That capacity is enhanced by the
                                                       Group’s partnership model and
             Following a smooth transition, from
                                                       reputation as a leading property
             former Managing Director and CEO,
                                                       investment manager, providing access
             Greg Clarke, to Steve McCann,
                                                       to third party capital. This enables
             we have made some important
                                                       Lend Lease to pursue the best
             refinements to our fully integrated
                                                       opportunities available at each stage
             property group strategy and
                                                       of the property cycle and deliver a
             business model.
                                                       higher return on Lend Lease’s capital.
                                                       Underpinning this development
                                                       earnings potential is a solid base of
                                                       recurring earnings from investment
                                                       management income from fees
                                                       and co-investments.
                                The construction and PPP businesses        outlook and dividend policy
Disciplined capital             have performed well this year and,
                                                                         Given the ongoing uncertain conditions,
management and                  while we expect it to remain difficult
                                                                         Lend Lease is not providing specific
conservative borrowing          to source new construction projects
                                                                         short-term earnings guidance.
                                from the private sector for at least the
during the good times meant     next year, both these businesses are
                                                                         Directors and management continue
that Lend Lease was able to                                              to be positive about the Group’s
                                now accessing significant opportunities
                                                                         operating outlook and remain focused
navigate the global financial   from government stimulus packages.
                                                                         on optimising total shareholder returns
crisis to perform well, on      Sustainability has been an integral part from all the Group’s activities.
a relative basis, over the      of the Group’s culture for 50 years.
                                                                         Long-term shareholder returns will
year to June 2009 and           We not only believe the principle,
                                                                         not be sacrificed to meet short-term
remain in a strong financial    we also know it is the smart thing to
                                                                         earnings targets through sub-optimal
                                do. Lend Lease is proudly recognised
condition. Conditions remain    as a leader in sustainability in the
                                                                         asset sales or other capital measures.
uncertain but the efforts       property industry.
                                                                         At this point in the cycle, you should
of governments around the                                                expect to see Lend Lease taking
                                Lend Lease continues to intensify        advantage of its very low leverage
world appear to be helping      its commitment to operating Incident     and investing capital to secure the
to stabilise the situation.     & Injury Free. The scale of that         best positions and develop the most
We remain cautious but also     vision is brought into focus with        appropriate projects in the pipeline
confident that Lend Lease       eight sub-contractor employee            as conditions improve.
is well placed to take          fatalities globally this year, despite
                                                                         With effect from the interim dividend
                                good reductions in the overall rate
advantage of opportunities      of incidents and injuries. Our aim
                                                                         2010, Lend Lease is changing its
ahead of many competitors.                                               dividend policy. Lend Lease will change
                                continues to be to operate Incident
                                                                         its dividend payout ratio from the range
                                & Injury Free.
                                                                         60% to 80% of operating profit after tax
                                                                         to 40% to 60% of operating profit after
                                                                         tax. Lend Lease will frank the dividend
                                                                         to the maximum extent possible on
                                                                         a sustainable basis.

David Crawford AO
chief executive     The 2009 financial year was impacted
                    by one of the toughest and broadest
                                                                realising shareholder
                                                                value from our advantages
Officer’s report    downturns the property markets have
                    yet seen. Fortunately, we entered the       While having a strong balance sheet
                    downturn in excellent financial shape.      and multiple growth options are big
                    While we have been primarily focused        advantages at this stage of the cycle,
                    on protecting that position through         they will not automatically translate into
                    prudent capital management and              improving shareholder value.
                    cost reductions, we have also been
                                                                The tactical actions to secure that value
                    positioning the business to capture
                                                                in the short term are largely complete.
                    the best opportunities likely to arise
                                                                The cost base has been right-sized
                    from the next market growth cycle.
                                                                to adjust for the downturn in volumes
                    We are strategically positioned to          across most of our businesses. Capital
                    leverage off a number of major trends       is being preserved by reprioritising
                    in the property market globally,            developments in line with market
                    particularly urbanisation, ageing of        conditions and targeting key, strategic
                    populations, government stimulus            projects that build backlog for all
                    spending and commercialisation              Group businesses. We are maintaining
                    of sustainability.                          active management of capital already
                                                                invested in the business and all
                   •		n	40	years	time,	27%	of	the	world’s	      businesses are focused on optimising
                     population is expected to be over the      cash flows.
                     age of 65 compared to approximately
                     15% today. Lend Lease’s position           To maximise longer-term potential
                     as a premier manager of retirement         shareholder value from the Group’s
                     properties in Australia means we are       strong position, I have worked with
                     well placed to capitalise on this trend.   the senior executive team and Board
                                                                of Directors to develop a clear set
                   •		 any governments have ambitions
                     M                                          of objectives and operating principles
                     to reduce carbon emissions and             for the Group.
                     to deliver sustainable communities.
                     This also plays well to our strengths.
                   •		 ur	superior	delivery	capability	and	
                     strong reputation for collaboration
                     make us an ideal partnership
                     candidate for government projects
                     being rolled out under stimulus
                     packages in various countries.
                                                performance targets                        capital recycling
It is a great privilege to                      We are focused primarily on                Lend Lease is not a distressed seller
be chosen to lead the                           shareholder return as measured             of assets and we will not sell assets to
Lend Lease team in the                          by Return on Equity and Return on          hit short-term profit targets. Instead, we
year that the Company                           Capital. Earnings per share growth         will recycle capital only when it delivers
celebrated 50 years of                          remains an important measure but           acceptable shareholder returns and
                                                is not the key driver of decisions.        to fund future growth opportunities.
property industry leadership.                   Key Performance Indicators for
Lend Lease has a proud                          employees, even in the short term,         collaboration to
history and I will work hard                    have regard to progress towards            maximise earnings
with my senior management                       delivering the appropriate longer-term     All Lend Lease companies will
team to drive shareholder                       return on capital and other key            increase their focus on the benefits
                                                metrics for the relevant business.         of our fully integrated business model.
value and contribute                            Other performance measurements             We have taken significant steps
positively	to	the	Group’s	                      include strategic initiatives, people      in this regard, including the merger
culture and legacy.                             management and operational                 of our development and investment
                                                excellence targets. Embedded in            management teams in all regions.
We have not fundamentally                       all of our businesses is our culture
changed our strategy or                         of safety first and we will continue to    Lend Lease is well placed to deliver
business model but have                         work tirelessly to achieve an Incident     attractive growth in shareholder value
made important refinements                      & Injury Free workplace.                   over the long term. We will measure
                                                                                           our progress against how well we
to performance                                  portfolio management                       perform against the initiatives and
management, portfolio                                                                      priorities I have set out in this report.
                                                We measure and monitor our capital
management, capital                             allocation rigorously. In the short term   I am confident that we will deliver
recycling and collaboration                     we plan to rebalance our portfolio         against those measures. As we do
across our businesses.                          toward Australia to reinforce our          so, shareholders should see Lend
                                                leadership position in our home            Lease re-positioned as a recognised
                                                market. Diversifying the Group’s           leader internationally in the provision of
                                                earnings will remain an important          world-class property solutions, with all
                                                goal – but only where we can achieve       of the attendant growth opportunities
                                                scale operating platforms in our           that such recognition will bring.
                                                chosen sectors and geographies
                                                over a realistic time frame and where
                                                we can work safely.
Steve McCann
Chief Executive Officer and Managing Director
Our            with capabilities                                       development
capabilities   that span the entire                                    Lend Lease has a proven
                                                                       track record in creating
               property value chain,                                   and managing complex
               from the origination of                                 mixed-use property
                                                                       developments incorporating
               opportunities through                                   large scale commercial,
               to the delivery of great                                residential, retail, master
                                                                       planned communities
               property outcomes, we                                   and senior living.
               can offer investors and
               clients one element or
               an end-to-end solution.

10/11          2009 Annual Shareholder Review Lend Lease Corporation
Investment                      project management             Asset & property
management                      & construction                 management
Lend Lease has 50 years         Lend Lease’s global            Our asset and property
experience in property          project management             management capabilities
investment management.          and construction business,     cover leasing, marketing,
Today, our global investment    Bovis Lend Lease, is one       centre management and
management platform             of the world’s leading         facilities management,
spans Asia, Australia,          construction companies.        enhancing the value of
the UK and the US.              Bovis Lend Lease offers        property and optimising
Our investment management       a range of services            income and total returns
team is committed to            spanning the design and        for the asset’s investors.
delivering global real estate   construction delivery
products and investment         process across a range
solutions tailored to the       of sectors including
needs of institutional          commercial, retail,
investors.                      residential, industrial,
                                pharmaceutical, mixed-use,
                                health, education, transport
                                and defence.
   development management   Investment management

Our capabilities
                   retaiL      residentiaL
project management & construction          Asset & property management

         CommerCiaL                 infrastruCture           retirement
Our strategy

                                       build                W
                                                          •		 orld	
                                        •		 eshape	
                Restore                   portfolio
                                        •		 perational	
                 •		 ight	structure
                   R                                        S
                                                          •		 trong	
                 •		 ost	out
                                        •		 row	
                                          G                 offering
                 •		 rive	efficiency
                   D                      platforms
                                                          •		 rusted	
                 •		 apital	
                   C                      I
                                        •		nvest	           investment
                   management             in people         manager

Our strategic     phase 1                phase 2           phase 3
path forward

Our segment

                                                                              public              project
                                                                              private             management       Investment
                                 retail               communities             partnerships        and construction management

Core Activities                  Asset ownership,     Masterplanned           Military housing,   Project              Asset ownership,
                                 development,         urban communities,      healthcare,         management           real estate
                                 property and asset   inner city apartments   education           and construction     investment
                                 management           and senior living       and waste                                management

Operating Revenue                $125.8m              $586.4m                 $1,507.0m           $12,422.0m           $69.1m

Proportion of Profit After Tax
from Operating Businesses1
1. Before corporate and
   non operating adjustments.
                                          14%                21%                     18%                 40%                    7%

Regional Business Operations     Australia,           UK, Australia,          UK, US              UK, Europe, Middle   Australia,
                                 Singapore,            Communities
                                                      US                       Public Private      Project
                                                                                                  East, Americas,        Investment
                                 UK, US                                        Partnerships        Management
                                                                                                  Asia Pacific           Management
                                                                                                                       UK, US
                                                                                                   and Construction

Lend Lease                                 we see more value in property
retail                                                                             •	Lend	Lease	holds	an	
                                                                                     ownership interest in
report                                                                               10 centres.
                                                                                   •	The	market	value	of	
for the year ended 30 June 2009                                                      Lend Lease’s interests
                                                                                     in these centres declined
                                                                                     to $1.5 billion, down
                                                                                     from $2.0 billion in 2008.
                                                                                     This was primarily due to
                                                                                     weakening of capitalisation
                                                                                     rates, principally in the UK.
                                                                                   •	Operating	profit	after	tax	
                                                                                     has remained robust,
Operating result $m                                           09            08       primarily due to comparatively
                                                                                     stable income from the
Operating profit after tax                                60.3         66.1          Bluewater and King of
Property management                                        (8.4)       (14.2)        Prussia shopping centres.
Investment income                                         68.7          80.3
Operating profit after tax by geography
Asia Pacific                      8.9   1.7
Europe                           24.0 42.3
Americas                         27.4 22.1

                                                                                                                      Construction of 313@somerset, Singapore

                                                                                                                      Joseph Goh
                                                                                                                      prOject mAnAger
16/17                      2009 Annual Shareholder Review Lend Lease Corporation                                      bOvIs Lend LeAse
cAse study:                                   The leasing team at 313@somerset has        the centre’s      Some key highlights of 313@somerset’s
313@somerset, singapore                       secured international fashion retailer      vision is to      sustainability journey to date include:
                                              Zara, which is launching a three-level      be one of the
exciting singapore                            flagship store in the new mall. Brand       leading retail
                                                                                                           •	greater	than	30%	reduction	in	energy	
retail opening                                                                                               consumption compared to code
                                              names also supporting the fashion           destinations
                                                                                                             compliant building through design
                                              mix include a four level Forever 21         in mid to
In August 2006, Lend Lease secured                                                                           and equipment selection;
                                              and well known UK brand New Look.           upper-mid
the highly coveted Somerset site from
                                              These retailers will be joined by market    fashion, food    •	generation	of	renewable	energy	
the Urban Redevelopment Authority
                                              brands Esprit, Mango, Lacoste and           and lifestyle.     via photovoltaic arrays;
of Singapore for S$617.2 million to
                                              Levi. 313@somerset was awarded
build a new regional shopping mall –                                                                       •	detailed	carbon	footprint	analysis	
                                              the highest sustainability recognition
313@somerset.                                                                                                and reduction strategy;
                                              in Singapore from the Building &
Lend Lease is working on all phases           Construction Authority – Green Mark                          •	retailer	sustainability	initiatives	
of the project, from development,             Platinum award in 2008.                                        and commitments;
leasing, project management and
                                              313@somerset has the first Registered                        •	thermal	energy	storage	to	increase	
construction to asset and property
                                              Training Organisation for its retailers,                       energy conservation;
management services on completion.
                                              offering free accredited training
Lend Lease and the Lend Lease Asian                                                                        •	co-generation	of	heat	and	electricity	
                                              courses. This is a first for Lend Lease
Retail Investment Fund are the owners                                                                        via bio-fuel for use within the centre;
                                              globally and a first for a retail mall in
of 313@somerset.
                                              Singapore. It is expected that over                          •	sustainability	education	strategies	
313@somerset is scheduled for opening         1,000 retailer employees will be trained                       for our community, retailers and
in December 2009 and will showcase            in this facility in the next 12 months.                        customers; and
eight levels of retail, targeting mid level
food and fashion in an exciting dynamic                                                                    •	the	centre	is	the	first	retail	
environment. The centre’s vision is to                                                                       development in Singapore to
be one of the leading retail destinations                                                                    introduce Green Lease Agreement.
in mid to upper-mid fashion, food and
lifestyle and will open 100% leased.

                                              wIth suppOrt Of the retAIL teAm, jOseph hAs cArrIed Out An

Our people
                                              AmbItIOus prOject tO buILd A green retAIL centre In sIngApOre,
                                              eArnIng 313@sOmerset A green mArk pLAtInum AwArd In 2008.
communities                                                                        •	Global	Communities	
                                                                                     operating profit after tax
                                                                                                                         •	During	the	year,	Lend	Lease	
                                                                                                                           completed the acquisition of a
report                                                                               declined 12% to $88.3 million,
                                                                                     from $100.3 million in 2008.
                                                                                                                           43.2% interest in Lend Lease
                                                                                                                           Primelife (previously Babcock
for the year ended 30 June 2009                                                      This was due to a significant         & Brown Communities) and the
                                                                                     decline in residential sales          associated management rights.
                                                                                     and settlements as a result
                                                                                                                         •	In	Asia	Pacific	Communities,	
                                                                                     of weak trading conditions
                                                                                                                           profit after tax included the
                                                                                     in both the UK and Australia.
                                                                                                                           profit from the sale of its
                                                                                   •	In	light	of	the	difficult	market	     interest in seven retirement
                                                                                     conditions in the UK and              villages and an aged care
                                                                                     Australian residential markets,       facility to Lend Lease Primelife.
                                                                                     the Communities business
                                                                                                                         •	In	the	UK,	conditions	for	the	
Operating result $m                                           09            08       has reduced the carrying
                                                                                                                           Communities business remain
                                                                                     value of its inventory and
                                                                                                                           very challenging. Despite
Operating profit after tax                                88.3 100.3                 other assets and has written
                                                                                                                           this, we remain well placed
                                                                                     off the goodwill in relation
Asia Pacific                                              99.9 82.7                  to the Crosby Lend Lease
                                                                                                                           with three of the major urban
                                                                                                                           regeneration projects in
Europe                                                   (10.4) 21.1                 business in the UK and the
                                                                                                                           London: Greenwich, Elephant &
                                                                                     Australian Communities
Americas                                                   (1.2) (3.5)               businesses.
                                                                                                                           Castle and the Athletes Village.

gross value of pre-sales                                                                                                 •	The	Communities	business	
                                                                                   •	The	Communities	business	
                                                                                                                           in the US involves one project,
Asia Pacific                                           339.3 589.4                   has a residential backlog
                                                                                                                           Horizon Uptown, which is in
                                                                                     of 102,040 units and a total
Europe                                                  28.5  41.6                                                         the planning/approval stages
                                                                                     commercial backlog of
                                                                                                                           and which Lend Lease will
                                                                                     4.7 million square metres.
                                                                                                                           only commence when market
                                                                                                                           conditions recover.

                                                                                                                          Val lowman
                                                                                                                          mAnAgIng dIrectOr
18/19                      2009 Annual Shareholder Review Lend Lease Corporation                                          beOnsIte
                                            cAse study:                                  phase One           The Village will be designed and
                                            stratford,                                   will deliver:       built in a way that requires lower
                                                                                                             energy demand, using materials and
                                            united kingdom                                2
                                                                                        •		 ,819	homes	
                                                                                                             construction processes that have
                                            the Athletes village                          (with 1,004
                                                                                                             low embodied energy. The Village
                                                                                          of these
                                                                                                             will also seek to minimise waste and
                                            The Athletes Village is one of the            affordable)
                                                                                                             increase recycled content in design
                                            most significant urban developments           targeting
                                                                                                             and construction. Water savings
                                            in the United Kingdom and is part of          Level 4 of
                                                                                                             are a key focus, with water efficient
                                            the broader masterplan for a new piece        the code for
                                                                                                             measures being applied during
                                            of city in east London.                       sustainable
                                                                                                             construction of the Village and water
                                                                                          homes (uk
                                            In the short term, the Athletes Village                          efficient fixtures and fittings to be
                                                                                          green building
                                            will provide thousands of beds for                               used throughout to reduce overall
                                            athletes and officials during the London                         water demand. Site wide water
                                            2012 Olympic and Paralympic Games. •		 ver	10	O                  use will be complementary to the
                                            After 2012, it will transform into a lively   hectares of        ecology and design of the landscape.
                                            residential community featuring an            open space.
                                                                                                             Design, planning and construction
                                            Education Academy, community and
                                                                                                             have made significant progress
                                            healthcare facilities, and numerous parks •		 n	Academy	
Aerial view of construction at Stratford,                                                 education          since work began on the permanent
United Kingdom                              and open spaces, all located within a
                                                                                          campus             foundations of the Village in June
                                            short train journey to central London.
                                                                                          catering for       2008. Construction of all 11
                                            The Athletes Village development is           1,800 students.    residential plots is now underway.
                                            publicly owned with investment from
                                            the Olympic Delivery Authority’s (ODA’s)      T
                                                                                        •		 ransport	
                                            budget. The ODA is overseeing the             facilities
                                            delivery of the Athletes Village, with        and global
                                            Lend Lease appointed as development           connections
                                            manager and Bovis Lend Lease as the           to international
                                            construction manager.                         stations.

                                            vAL hAs been cOmmItted tO deLIverIng LOcAL empLOyment And skILLs

Our people
                                            sInce 1995 wIthIn bOvIs Lend LeAse uk. vAL wAs AwArded An Obe fOr
                                            her wOrk In cOnstructIOn skILLs trAInIng And beOnsIte thIs yeAr.
public private                                                                     •	In	the	US,	Lend	Lease’s	Public	
                                                                                     Private Partnerships (PPP)
                                                                                                                           QuIck fActs:
partnerships                                                                         business, Actus Lend Lease,
                                                                                     delivered a profit after tax
                                                                                                                           Lancashire county
                                                                                                                           council (Lcc)
report                                                                               of $68.2 million, down from
                                                                                     $72.2 million in 2008, as no
                                                                                                                           project company:
                                                                                                                           catalyst education
for the year ended 30 June 2009                                                      projects reached financial
                                                                                                                           Lancashire Ltd
                                                                                     close during the year.
                                                                                                                           construction value:
                                                                                   •	Actus	Lend	Lease	currently	           €310 million/£220 million
                                                                                     has 19 projects.
                                                                                                                           total project funding:
                                                                                   •	In	the	UK,	Lend	Lease’s	PPP	          €352 million/£250 million
Operating result $m                                           09            08       business delivered a profit           construction:
                                                                                     after tax of $6.2 million, after      Aug 2006 – sept 2010
Operating profit after tax                                74.4          59.0         a loss of $13.2 million in 2008.
                                                                                                                           concession period:
                                                                                     June 2008 operating loss after
Europe                                                     6.2         (13.2)        tax of $13.2 million has been
                                                                                                                           25 years
Americas                                                  68.2          72.2         adjusted from an operating            building contractor:
                                                                                     profit after tax of $0.8 million to   bovis Lend Lease
projects secured/closed during period                                                reflect the impact of adopting        facilities management:
                                                                                     accounting standard AASB              vita Lend Lease
europe                                                                               Interpretation 12 Service
Preferred bidder – secured      1                                         –          Concession Arrangements.
Financial close                 1                                         1
Preferred bidder – secured      –                                         1
Financial close                 –                                         6

                                                                                                                           Cate Collins
                                                                                                                           heAd Of sustAInAbILIty –
                                                                                                                           AsIA pAcIfIc
20/21                      2009 Annual Shareholder Review Lend Lease Corporation                                           Lend LeAse
cAse study:                                Building Schools for the Future (BSF)      All the           a further three schools. In addition,
Lancashire,                                is the largest single schools capital      schools will be   the LEP will upgrade Accrington
                                           investment program in the UK for over      equipped with     Academy and the Academy for
united kingdom                             50 years. Catalyst Lend Lease has          carbon neutral    North Preston.
building schools for                       formed a Local Education Partnership       biomass
                                                                                                        Sustainability is a key factor in
the future program                         (LEP) with Lancashire County               boilers and
                                                                                                        the new schools, both in regards
                                           Council to deliver the BSF program         energy saving
                                                                                                        to environmental credentials and
                                           in East Lancashire.                        measures.
                                                                                                        through the creation of a local skills
                                           The first ‘wave’ of this program                             legacy, led by Catalyst Lend Lease
                                           involves the provision of 14 schools                         and the BSF supply chain.
                                           and two academies, spread over three
                                                                                                        All the schools will be equipped
                                           phases. It represents the largest single
                                                                                                        with carbon neutral biomass boilers
                                           investment ever made in secondary
                                                                                                        and energy saving measures such
                                           education in this area of the county.
                                                                                                        as wind turbines, solar collectors
                                           The first phase, seven schools on three                      and photovoltaic cells, together
                                           sites – Shuttleworth College, Burnley                        with rainwater harvesting to reduce
                                           Campus and Pendle Vale – opened in                           water consumption.
                                           September 2008.
                                                                                                        The skills legacy plan has been
                                           Two schools from the second phase,                           extremely successful, with over
                                           Sir John Thursby Community College                           £40 million of contracts being
                                           and Ridgewood Community High                                 awarded to Lancashire businesses
                                           School, have opened successfully.                            and over 40 new jobs created for
                                           The remaining five phase one schools                         local school leavers with companies
                                           will all open in 2010, together with                         working in the supply chain.
                                           Accrington Academy. In June 2009
                                           Catalyst Lend Lease reached financial
                                           close with the County Council for the
Pendle Vale College and Community High     third phase of the program, involving
School entrance, part of the first phase
of the BSF program in East Lancashire

                                           cAte wAs AwArded the AustrALIAn fInAncIAL revIew bOss mAgAzIne’s yOung
                                           executIve Of the yeAr. cAte hAs been InstrumentAL In the desIgn, pLAnnIng
                                           And mAnAgement Of sustAInAbILIty strAtegIes fOr the Investment

Our people
                                           mAnAgement busIness gLObALLy And Is nOw respOnsIbLe fOr mAnAgIng the
                                           cOmmercIALIsAtIOn Of sustAInAbILIty AcrOss the AsIA pAcIfIc busInesses.
project                                                                            •	Bovis	Lend	Lease	delivered	          •	In	Europe,	the	UK	business	
                                                                                     a strong result due to                 continues to return to normal

management                                                                           a standout performance
                                                                                     in Australia.
                                                                                                                            levels of profit, although
                                                                                                                            the business continues to

and construction                                                                   •	Global	profit	after	tax	was	
                                                                                     $168.9 million, up 13%
                                                                                                                            be impacted by the work-out
                                                                                                                            of UK projects where
report                                                                               on the June 2008 result of
                                                                                     $150.0 million. The profitability
                                                                                                                            loss provisions were taken
                                                                                                                            in prior years.
for the year ended 30 June 2009                                                                                           •	In	the	Americas,	profit	after	
                                                                                     ratio increased from 34% to
                                                                                     39%, principally due to the            tax was impacted by costs
Operating result $m                                           09            08       higher profit contribution             relating to a fire at the former
                                                                                     in Europe and Asia Pacific.            Deutsche Bank building
Operating profit after tax                              168.9 150.0                                                         in New York.
                                                                                   •	In	Asia	Pacific,	profit	after	tax	
Asia Pacific                                             94.7 69.0                   was up 37% to $94.7 million          •	Backlog	gross	profit	
Europe                                                   39.0 21.3                   from $69.0 million in 2008, on         margin decreased by
                                                                                     the back of continued strong           12% from $788.3 million
Americas                                                 35.2 59.7                   market conditions, particularly        to $690.1 million, with 58%
                                                                                     for social infrastructure.             expected to be realised
profitability ratio (ebItdA/realised gpm)                                            Since April 2009, Bovis Lend           in the 2010 financial year.
                                  39% 34%                                            Lease has secured circa
                                                                                     $1 billion of education work
Asia Pacific                      61% 50%                                            under government stimulus
Europe                            30% 19%                                            packages.
Americas                          25% 34%
gross margin (realised gpm/revenue)
                             5.2% 4.7%

                                                                                    Kirstin riCh
                                                                                    AssIstAnt dIrectOr Of prOperty
                                                                                    mAnAgement, fOrt drum
                                                                                    mOuntAIn cOmmunIty hOmes
22/23                      2009 Annual Shareholder Review Lend Lease Corporation    Actus Lend LeAse
                              cAse study:                               Anz centre,      up to 40 metres into the riverbed
                              Anz centre, Australia                     when             to form the support on which the
                                                                        completed,       Yarra River Boardwalk will sit.
                              Office accommodation                      will be the
                                                                                         All areas within the building are
                              In 2006, Lend Lease agreed                largest single
                                                                                         a maximum of 12 metres from
                              commercial terms with ANZ to develop      tenanted
                                                                                         a natural light source, improving
                              circa 83,500 square metres of office      commercial
                                                                                         the workplace environment and
                              accommodation at its landmark             building in
                                                                                         reducing energy consumption.
                              Victoria Harbour development in           Australia.
                              Melbourne. Lend Lease was engaged                          Sustainability features in the building
                              to provide development management                          include energy generation via an
                              services, with project management,                         on-site gas-fired tri-generation unit,
                              design and construction services                           1,000 square metres of solar cells,
                              provided by Bovis Lend Lease.                              and roof-mounted wind turbines.
                                                                                         A blackwater treatment plant will
                              Site work commenced in late 2006                           recycle all waste water for reuses such
                              and is due for completion in late 2009.                    as toilet flushing and cooling towers.
                              ANZ Centre, when completed, will be
                              the largest single tenanted commercial                     The project is registered for three
Construction of ANZ Centre,
Melbourne, Australia
                              building in Australia, accommodating                       Green Star ratings from the Green
                              up to 6,500 employees. The building                        Building Council of Australia.
                              is located on the new extension of
                                                                                         The project was awarded the
                              Collins Street and is bounded by
                                                                                         Excellence in Health & Safety award
                              the Yarra River and Docklands Park.
                                                                                         at the Master Builders Association
                              The proximity of the project to the
                                                                                         of Victoria’s 2009 Excellence in
                              Yarra River required 1,500 piles,
                                                                                         Construction Awards.
                              driven to a depth of 35 metres –
                              the equivalent of a 10-storey building
                              underground. In addition, 97 specially
                              imported steel tube piles were driven

                              kIrstIn, wOrkIng In pArtnershIp wIth the us mILItAry And AffILIAted
                              OrgAnIsAtIOns, hAs deveLOped A number Of sOcIALLy sustAInAbLe

Our people
                              prOgrAms thAt unIfy the dIspArAte And dIverse set Of peOpLe whO
                              LIve At fOrt drum, creAtIng A new mILItAry LIfestyLe.
Investment                                                                         •	Total	operating	profit	after	tax	
                                                                                     for Investment Management
                                                                                                                         •	Lend	Lease	Investment	
                                                                                                                           Management won the
management                                                                           declined to $28.9 million
                                                                                     from $137.3 million. This was
                                                                                                                           third annual Melbourne
                                                                                                                           Financial Services
report                                                                               principally due to the prior
                                                                                     year including a profit after
                                                                                                                           Symposium Investment
                                                                                                                           Stewardship Award for Funds
for the year ended 30 June 2009                                                      tax of $40.1 million from the         Management, recognising
                                                                                     sale of a proportion of the           long-term achievement.
                                                                                     Group’s interest in Australian        The award was presented in
                                                                                     Prime Property Funds (APPF)           Melbourne on 2 March 2009.
                                                                                     and in Europe, a tax exempt
                                                                                                                         •	Lend	Lease	Investment	
                                                                                     dividend of $47.9 million from
                                                                                                                           Management signed
                                                                                     the Group’s interest in the
                                                                                                                           a memorandum of
                                                                                     advisor company Lend Lease
Operating result $m                                           09            08                                             understanding during
                                                                                     Global Properties, SICAF in
                                                                                                                           the year with the Clinton
                                                                                     relation to incentive fees.
Operating profit after tax                                28.9 137.3                                                       Climate Initiative to work
                                                                                   •	Funds	under	management	               together on opportunities
Funds management                                           8.4 54.1                  increased by $0.6 billion             to significantly reduce the
Investment income                                         20.5 83.2                  to $9.9 billion, principally          environmental impact of
                                                                                     due to the acquisition of             buildings by accelerating
Operating profit after tax by geography                                              the Lend Lease Primelife              retrofits to maximise energy
Asia Pacific                     27.1 71.8                                           management rights.                    efficiency and reduce
                                                                                                                           greenhouse gas emissions.
Europe                             3.1 61.9
Americas                          (1.3) 3.6

                                                                                                                          riChard miChaels
                                                                                                                          vIce presIdent,
                                                                                                                          senIOr superIntendent,
                                                                                                                          bOstOn, mAssAchusetts
24/25                      2009 Annual Shareholder Review Lend Lease Corporation                                          bOvIs Lend LeAse
       cAse study:                                    APPF Commercial was established            the fund’s        The strategy established operational
       Appf commercial                                in 1994 and has gross assets of over       portfolio         targets for energy, waste and water.
                                                      $1 billion across a portfolio of prime     comprises         APPF Commercial has also committed
       commercial assets                              commercial properties in Australia.        interests in      to achieving a minimum 5 Star Green
       in excess of $1 billion                        The Fund’s portfolio comprises interests   11 properties,    Star certification for all new buildings
                                                      in 11 properties, with a strategic         with a            entering the portfolio.
                                                      weighting to eastern seaboard central      strategic
                                                                                                                   The Fund continues to work towards
                                                      business district office markets.          weighting
                                                                                                                   improving environmental performance
                                                                                                 to eastern
                                                      APPF Commercial has a sustainability                         and achieving consumption intensity
                                                      strategy which was endorsed in                               targets through the implementation
                                                      2007 to be recognised as a leading                           of a range of programs and projects.
                                                      environmentally sustainable property
                                                                                                 district office
                                                      fund within the Australian marketplace.
                                                      APPF Commercial views sustainability
                                                      as not only an opportunity to
                                                      reduce operating costs, enhance
                                                      tenant relations and improve the
                                                      competitiveness and performance
                                                      of its investments, but also as a
                                                      social responsibility.

The Gauge, Victoria Harbour, Melbourne, Australia –
owned by APPF Commercial

                                                      rIchArd deveLOped A perImeter prOtectIOn rAIL cLImbIng system whIch
                                                      prOvIded fuLL encLOsure tO seven wOrkIng LeveLs On A hIgh-rIse cOncrete
                                                      buILdIng In bOstOn. thIs system mInImIses the rIsk Of fALLs Of peOpLe And

       Our people
                                                      mAterIALs. rIchArd wAs AwArded Lend LeAse’s IncIdent & Injury free
                                                      cOnstructIOn LeAder Of the yeAr usA AwArd In 2009.
sustainability   sustainability has been an integral part
report           of our culture for more than 50 years.
                 today, our employees insist that making
                 a difference in our communities, improving
                 health and safety standards, and reducing
                 our environmental impacts are central
                 to our business strategy.
                 thanks to the innovative thinking and
                 professional excellence that define our
                 people, we’ve taken huge strides forward
                 in our aspiration to be a global leader.
                 Our sustainability performance is now
                 regularly updated on a dedicated website,
                 every Action Adds up, to ensure we meet our
                 reporting obligations to all our stakeholders.

26/27            lendlease.com/sustainability
how do        Lend Lease is the only
              Australian company to be
                                               the goldman sachs jbwere
                                               climate Leadership Index
we measure    included in all three globally   lists the ‘best in class’
              recognised sustainability        Australian and New Zealand
leadership?   reputation indices.              respondents to the Carbon
                                               Disclosure Project (CDP).
              the dow jones
                                               CDP represents 385 global
              sustainability Index is the
                                               institutional investors with
              first of the global indices
                                               more than US$57 trillion
              to track the financial
                                               in assets under management
              performance of leading
                                               and collects climate
                                               change data from 1,550
              companies worldwide and
                                               corporations worldwide.
              is used by asset managers
              of sustainability portfolios     the global 100 most
              worth close to US$8 billion.     sustainable corporations
                                               in the world is unveiled each
                                               year at the World Economic
                                               Forum in Davos and ranks
                                               performance on social,
                                               environmental and strategic
                                               governance issues through
                                               the lens of risk and
                                               shareholder value.
Our                          incident & injury free
                             Lend Lease has a deep and
                                                                                     safety dashboard
                                                                                     The Safety Dashboard is a
                                                                                                                                    the safety
safety                       widespread commitment to
                             operating Incident & Injury Free
                                                                                     web-based safety reporting system
                                                                                     that provides a central reference point
                             wherever we have a presence –                           for all key construction safety data
                                                                                                                                    reporting and
                             this is an enormous challenge but                       from across the company.
                                                                                                                                    key safety risk
                             one we are determined to progress.
                                                                                     Developed by the Lend Lease IT team            information for
                             Safety touches every aspect of the                      over the past 12 months, the Safety            all Lend Lease
                             Lend Lease business, from the                           Dashboard includes compliance,                 construction
                             buildings we design and construct                       incident reporting and key safety              projects
                             to the way our assets are managed.                      risk information for all Lend Lease            throughout
for more information                                                                 construction projects throughout               the world.
                             Providing our people with the right
on our health and safety                                                             the world. Using a combination of
                             systems and tools to deliver safe                                                                      r: The Safety
performance, visit                                                                   lead and lag indicators, the Safety            Dashboard is a
                             outcomes is crucial to achieving                                                                       powerful management
                                                                                     Dashboard provides a holistic
lendlease.com                our Incident & Injury Free vision.
                             A lot of hard work has been done
                                                                                     picture of safety performance.
                                                                                                                                    tool utilised to improve
                                                                                                                                    safety performance

                             over the past year to build on our
                             accomplishments to date and set
                             in place a robust and vigorous
Lend Lease has               global governance system for safety.
implemented global           We have implemented Global
minimum requirements         Minimum Requirements for safety
                             to address key risks right across
for safety to address
                             the business from our construction
key risks right across our   sites to the assets we design
business from construction   and manage.
sites to the assets we       This has been supported by
design and manage.           extensive education, training and
                             worker engagement programs.
                             We still have a lot to do to realise
                             our Incident & Injury Free vision –
                             but we are confident that we are
                             on the right track.

28/29                        2009 Annual Shareholder Review Lend Lease Corporation                                   The Athletes Village, Stratford work site
 site logistics planning                    Lend

 The constant movement of people            Lease Lost

                                            time injury

 and materials present significant
 safety challenges to construction          frequency

 sites globally. Our work on the Athletes
 Village in the UK is elevating safety
                                            rate ratio

                                            by region

 standards through detailed logistics
 planning. With 1,200 workers and           and global
                                            (per 200,000
 800 vehicles currently travelling
 through the 49 hectare site on a daily     man-hours)
 basis, leading edge safety logistics       It has been
 planning is critical.                      encouraging


  Site initiatives include:                 to see

                                            a downward

•	a	dedicated	delivery	holding	centre;
                                            trend in Lost
•	planning	deliveries	with	the	use	         Time Incident
  of dedicated logistics software;

•	controlled	site	access	delivery	          Rates across     FY08
  procedures;                               the Group over
•	fully	enclosed	pedestrian	walkways;       the past three
•	clearly	demarcated	crossing	points;
•	delivery	routes;	and	


•	segregated	unloading	zones,

  all contributing to an industry leading

  approach to the delivery of materials

  and the movement of people across
  this extremely busy site.                                  fy09

                                                                                               BLL Americas
                                                                    BLL Australia

                                                                                                                       BLL CEMEA

                                                                                                                                   BLL	Global

                                                                                                                                                US Actus
                                                                                    BLL Asia

                                                                                                              BLL UK
Our             developing leadership
                by working with leaders
                                                          the development of large scale urban
                                                          projects to demonstrate that cities
                                                                                                     two Lend
                                                                                                     Lease projects

environment     Over the past year, Lend Lease has
                                                          can grow in ways that are ‘climate
                                                          positive’. Two Lend Lease projects,
                                                                                                     are among
                                                                                                     the first of
                committed itself to work in partnership   Victoria Harbour in Melbourne and          16 climate
                with the Clinton Climate Initiative       Elephant & Castle in London, are           positive
                on opportunities to significantly         amongst the first of 16 projects in        development
                reduce the environmental impact           10 countries across six continents.        projects in
                of buildings through maximising                                                      10 countries
                energy efficiency and reducing            To reduce the net greenhouse gas           across six
                greenhouse gas emissions.                 emissions of the projects participating    continents.
                                                          in the Climate Positive program
                In November 2008, Lend Lease              to below zero, property developers
                Investment Management and the             and local governments will agree to
                Clinton Climate Initiative signed a       work in partnership on specific areas
                Memorandum of Understanding               of activity. This includes implementing
                to create a collaborative relationship    economically viable innovations
                focusing on existing building             in the buildings, the generation of
                refurbishment opportunities.              clean energy, waste management,
                In May this year at the C40 Summit        water management, transportation,
                in Korea, the Clinton Climate             and outdoor lighting systems.
                Initiative launched a global program,     When the initial 16 projects are
                developed in collaboration with           completed, nearly one million people
                the U.S. Green Building Council           will live and work in Climate Positive
                (USGBC). Called the Climate Positive      communities.
                Development Program, it will support


                CLimate                                   internationaL                             Cutting
tHinking        positive Carbon                           reporting                                 emissions
Like a Leader   CaLCuLator                                standards                                 faster
Working in partnership         We are committed to proactively                                      183
                               implementing strategies that                                         Lend Lease
for a better built                                                                                  projects have
                               address our impacts and reduce our
environment                    greenhouse gas emissions globally.                                   registered or
                               We do this through partnering with                                   have achieved
                               some of the world’s leading thinkers                                 green building
                               on the built environment, climate                                    certification.
                               change and sustainability.

 5                       855         383         1054          675    green skilling                the number of
                                                                                                    green building
                                                                      our people                    accredited
                                                                                                    has risen
                                                                                                    from five to
                                                                                                    675 in four
                                                                                                    years, to
                                                                                                    deliver green
                                                                                                    rated offices
                                                                                                    and assets.

05   06      07                08                       09


                                                                                  Green	building	trained

lendlease.com/sustainability                                                      Green	building	accredited	professional
Our      foundation – looking
         after employee wellbeing
people   The belief that it is a company’s duty
         to positively contribute to communities
         where Lend Lease employees live and
         work remains core to Lend Lease’s
         culture and underpins the essence
         of ‘Foundation’.
         ‘Foundation’ is an independent business
         unit within Lend Lease, exclusively
         focused on employees, their families
         and community wellbeing. Foundation
         programs operate year-round, and are
         accessible to all employees.
                                                    Employees taking part    In today’s
                                                    in one of Foundation’s
         Foundation is a constant through           Health and Wellbeing     climate,
         all climates. Employees are supported      programs                 foundation’s
         and developed when the business                                     role in nurturing
         is growing, during times of change,                                 and developing
         and amidst challenging times.                                       employees is
         In today’s climate, Foundation’s role in                            more important
         nurturing and developing employees is                               than ever.
         more important than ever. Foundation
         programs inspire and engage
         employees, and in doing so, help to
         keep our teams motivated and positive.

         Lend LeAse’s AnnuAL
                                                    more than
32/33    cOmmunIty dAy                              425, 000 hours
Cranes for children
A visit to the Royal Children’s Hospital
in Melbourne has been made extra
special for one group of children
thanks to a Bovis Lend Lease
initiative. As part of the Children’s
Health Partnership consortium,
Bovis Lend Lease is responsible for
the construction of Victoria’s largest
hospital redevelopment.
The project has required nine cranes
onsite and Bovis Lend Lease crane
drivers decided each needed a name
– honouring one of the hospital’s
courageous young patients. Each
of the children recognised in this
way were invited to an official crane
naming ceremony and presented
with a personalised Bovis Lend Lease
hard hat and safety jacket.

                                           Rosie Morgan and her crane crew: Manuel Goncalves, Joe Sedlak, Stewart Kelly and Jose Gasper

 enCourages aLL empLoYees around
 tHe WorLd to give sometHing               sInce Its InceptIOn In 1996, Lend LeAse
 baCk to tHe Communities in WHiCH          empLOyees hAve prOvIded mOre thAn
 tHeY Live and Work.                       425,000 vOLunteer hOurs gLObALLy.
directors’   d A crawford
                                          Other directorships
                                          and positions
                                                                    s b mccann
                                                                    Managing Director
                                                                                               Prior to joining Lend
                                                                                               Lease, Mr McCann
                                                                                               was at ABN AMRO,
                                          Mr Crawford is Non
             Chairman                     Executive Chairman        (Executive)                where his roles included
             (Non Executive)              of Foster’s Group         Age 44                     Head of Property, Head
             Age 65                       Limited (appointed                                   of Industrial Mergers
                                                                    Mr McCann was
                                          Director August 2001                                 & Acquisitions and
             Mr Crawford joined the                                 appointed Chief
                                          and Chairman 31                                      Head of Equity Capital
             Board in July 2001 and                                 Executive Officer in
                                          October 2007) and a                                  Markets for Australia
             was appointed Chairman                                 December 2008 and
                                          Non Executive Director                               and New Zealand.
             in May 2003.                                           became Managing
                                          of BHP Billiton Limited   Director in March 2009.    Mr McCann also
             experience and               (appointed May 1994).                                practised as a mergers
             Qualifications               He was formerly a Non     experience and
                                                                                               and acquisitions lawyer
                                          Executive Director        Qualifications
             Previously Mr Crawford                                                            at Freehills, Melbourne
             was National Chairman        of Westpac Banking        Prior to this role,        for four years and
             of the Australian firm       Corporation (appointed    Mr McCann was              worked in a Chartered
             of KPMG. He has              May 2002, resigned        Group Finance              Accounting firm in
             extensive accounting         14 December 2007)         Director (appointed        taxation for four years.
             and business experience      and National Foods        in March 2007) and
                                                                    Chief Executive Officer    Mr McCann holds a
             having worked with many      Limited (appointed                                   Bachelor of Economics
             large corporations and       November 2001,            for Lend Lease’s
                                                                    Investment Management      (Finance major) and a
             governments. He holds a      resigned June 2005).                                 Bachelor of Laws from
             Bachelor of Commerce                                   business (September
                                                                    2005 to December 2007).    Monash University in
             and Bachelor of Laws                                                              Melbourne, Australia.
             from the University of                                 Mr McCann has
                                                                                               Other directorships
             Melbourne. He is a                                     more than 15 years
                                                                                               and positions
             Fellow of the Institute of                             experience in investment
             Chartered Accountants.                                 banking, property funds    Nil
                                                                    management and capital
                                                                    markets transactions.

p m colebatch              Executive Board of Swiss
                           Reinsurance Company,
                                                       g g edington                He is a past President
                                                                                   of the British Property
(Non Executive)            Zurich. He was previously   cbe                         Federation, was the
Age 64                     on the Executive Board      (Non Executive)             Chairman of UK property
Mr Colebatch joined        of Credit Suisse Group,     Age 63                      company Greycoat
the Board in December      Zurich, where he was                                    Estates Limited and was
                           Chief Financial Officer,    Mr Edington joined the      a member of the Bank
2005 and is Chairman                                   Board in 1999 and is
of the Personnel and       and was subsequently                                    of England Property
                           Chief Executive Officer     a member of the Risk        Forum. Mr Edington was
Organisation Committee                                 Management and Audit
and a member of the        of Credit Suisse Asset                                  formerly Chairman of the
                           Management.                 Committee and the           Council of Trustees of
Risk Management                                        Sustainability Committee.
and Audit Committee.       Other directorships                                     the UK children’s charity,
                           and positions               experience and              Action for Children, and
experience and                                         Qualifications              was awarded a CBE for
Qualifications             Mr Colebatch is
                           a Non Executive             Qualified as a Chartered    ‘services to children’.
Mr Colebatch has a                                     Surveyor, Mr Edington
                           Director of Insurance                                   Other directorships
Bachelor of Science                                    brings to the Board
                           Australia Group Limited                                 and positions
and Bachelor of                                        extensive UK and
Engineering from the       (appointed January 2007)                                Nil.
                           and a Non Executive         international experience
University of Adelaide,                                in the property sector.
a Master of Science        Director of Mann
                           Group plc (appointed        Mr Edington was a
from Massachusetts                                     Director of BAA plc
Institute of Technology    1 September 2007).
                                                       and Chairman of BAA
and a Doctorate in                                     International. He joined
Business Administration                                BAA plc in 1988,
from Harvard University.                               became a member of
He has held senior                                     the Board in 1991 and
management positions                                   has been the Chairman
in insurance and                                       of six BAA companies.
investment banking,
and was formerly on the
directors’   p c goldmark
             (Non Executive)
                                         in New York for 10 years.
                                         Mr Goldmark has held
                                         positions including
                                                                     j A hill
                                                                     (Non Executive)
                                                                                                 She has a Bachelor of
                                                                                                 Arts from the University
                                                                                                 of California at Los
profiles     Age 68
             Mr Goldmark joined
                                         Senior Vice President
                                         of the Times-Mirror
                                                                     Age 63
                                                                     Ms Hill joined the Board
                                                                                                 Angeles and a Master
                                                                                                 of Arts in marketing and
             the Board in 1999 and       Corporation, Executive      in May 2006. She is         management from the
             is Chairman of the          Director of the Port        Chairperson of the          University of Georgia.
             Nomination Committee        Authority of New York       Sustainability Committee    Other directorships
             and a member of the         and New Jersey,             and a member of             and positions
             Sustainability Committee.   and Director of the         the Personnel and           Ms Hill is a Non Executive
             experience and              Budget for the State of     Organisation Committee.     Director of Wellpoint, Inc.
             Qualifications              New York. A writer and      experience and              (appointed March 1994).
                                         speaker on world affairs,   Qualifications              She was formerly a Non
             Mr Goldmark is Director,
                                         Mr Goldmark graduated                                   Executive Director of
             Climate and Air Program                                 Ms Hill has held a
                                         with a BA from Harvard                                  Resources Connection,
             at Environmental                                        number of senior
                                         College, Government                                     Inc. (appointed
             Defense, a US-based                                     executive positions in
                                         Department, magna                                       January 2003, resigned
             non-profit environmental                                the land development
                                         cum laude. He brings                                    December 2006).
             advocacy organisation.                                  and housing construction
                                         to Lend Lease his wide                                  Ms Hill also sits on the
             He was the Chairman                                     industry in North
                                         experience as a Chief                                   Board of Directors of
             and Chief Executive                                     America. She was
                                         Executive Officer and                                   the Lord Abbett family
             Officer of The                                          formerly the Chairperson,
                                         senior executive in                                     of mutual funds, which
             International Herald                                    President and Chief
                                         the private and public                                  is the trustee of 31
             Tribune in Paris between                                Executive Officer of
                                         sectors, both in the USA                                mutual funds of publicly
             1998 and 2003. Prior                                    Costain Homes, Inc.
                                         and internationally.                                    held companies.
             to this, he was the                                     (US) and Vice President
             President and Chief         Other directorships         and General Manager,
             Executive Officer of the    and positions               Mobil Land (Georgia)
             Rockefeller Foundation      Nil.                        Corporation.

d j ryan AO               He has a Bachelor           m w selway                 Prior to joining the          Other directorships
                          of Business from the                                   Weir Group in 2001,           and positions
(Non Executive)           University of Technology,   duniv                      he was a member of            Mr Selway is an
Age 57                    Sydney and is a Fellow      (Non Executive)            the Supervisory Board         Executive Director of
Mr Ryan was appointed     of CPA Australia and the    Age 50                     of Schefenacker AG,           The Weir Group PLC
a Director in December    Australian Institute of                                and Executive Director        (appointed June 2001).
                                                      Mr Selway joined the
2004. He is Chairman of   Company Directors.                                     of Britax International
                                                      Board in June 2008.
the Risk Management       Other directorships                                    plc. Having spent much
                                                      In July 2009, he
and Audit Committee       and positions                                          of his career managing
                                                      became a member of the
and a member of           Mr Ryan is Non Executive                               engineering businesses
                                                      Sustainability Committee
the Personnel and         Chairman of Transurban                                 in the United States, the
                                                      and the Personnel and
Organisation Committee.   Holdings Limited                                       United Kingdom and
                                                      Organisation Committee.
experience and            (appointed Director                                    Australia, Mr Selway
                                                      experience and             is regarded as a
Qualifications            April 2003 and Chairman     Qualifications
                          February 2007) and                                     specialist in operational
Mr Ryan has previously                                Mr Selway is currently
                          ABC Learning Centres                                   management and
held Managing Director                                Chief Executive of
                          Limited (administrators                                efficiency. He holds a
positions in investment                               The Weir Group PLC,
                          appointed, receivers and                               Diploma in Industrial
banking and industry,                                 a FTSE 250 engineering
                          managers appointed)                                    Engineering and was
as well as being the                                  sector listed company
                          (appointed Director                                    awarded an honorary
Chairman or a Non                                     headquartered in
                          June 2003 and Chairman                                 degree of a Doctor of
Executive Director of a                               Scotland. He brings
                          30 May 2008). He is                                    the University of the West
number of listed public                               more than 30 years’
                          also the Non Executive                                 of Scotland in July 2009.
companies.                                            experience in global
                          Chairman of Tooth & Co                                 Mr Selway was given
                                                      business development,      this award in recognition
                          Limited (appointed
                                                      integration and            of his outstanding
                          Director September 1999
                                                      management through         contribution to industry in
                          and Chairman January
                                                      various roles.             Scotland and to honour
                                                                                 his distinguished career.
director and executive remuneration

                                                    Other               share                                               Other          share
                                                    short  post         based                                               short  post    based   Other
                                           base     term employ-         pay-                                               term employ-    pay-   Long
                                           fees     fees   ment         ments1     total                           salary   fees   ment    ments   term    total

                                           $000      $000       $000      $000     $000                             $000    $000    $000    $000   $000    $000

non executive directors                                                                      executive directors
D Crawford                                 550         40         14       110         714   S McCann              1,329    986      43    1,754     16    4,128
P Colebatch                                 150       109         14        41         314   executives
G Edington                                  150       103         14        39     306       B Soller               536     326      49     147       9    1,067
P Goldmark                                  150       112         14        40         316
                                                                                                                            Other          share
J Hill                                      150       118         14        40         322                                  short  post    based   Other
                                                                                                                            term employ-    pay-   Long
D Ryan                                      150        97         14        41         302                         salary   fees   ment    ments   term    total

                                                                                                                    $000    $000    $000    $000   $000    $000
M Selway                                    150        50         14        31         245
1 Comprises entitlements under the Non Executive Directors’ Retirement Benefit Plan.         Other executives in the category of the five highest paid
                                                                                             M Bellaman             685     399       9     387       –    1,480
                                                                                             M Coleman              586     644     189     542       8    1,969
                                                                                             W Hara                 323     308      14     431       8    1,084
                                                                                             R Leaver               778     356      18     481      12    1,645
                                                                                             T Lombardo             527     357      15     179       7    1,085
                                                                                             N Martin               400     387     147      86       6    1,026
                                                                                             M Menhinnitt           655     360     362     256      10    1,643
                                                                                             E Ooi                   571    321     141     640       7    1,680

The Lend Lease website keeps Shareholders informed about the Company’s
activities and performance. The Annual Report to Shareholders, results
announcements, webcasts, presentations and news releases are all readily
available on the Investor Information section of our website.                                                                        www.lendlease.com
CORPORATE DIRECTORY                                                               EnvIROnmEnTAllY fRIEnDlY In EvERY wAY

Directors         Secretary           Share Registry                              Paper specifications                      Printing specifications
D A Crawford,     W Hara              and Shareholder Queries
                                                                                  The cover and editorial of this           The cover and editorial of this Report
Chairman,         Stock               Principal Register                          Report are printed on 9Lives 80, an       are printed using vegetable based
S B McCann,       Exchange            Computershare Investor                      environmentally responsible paper,        inks and varnish. These inks are
Managing          listings            Services Pty Limited                        containing 80 per cent post consumer      biodegradable. They do not harm the
Director and                          GPO Box 2975                                fibre and 20 per cent totally chlorine-   environment.
Chief Executive   Australia
                  New Zealand         Melbourne VIC 3001                          free pulp. It is an FSC certified mixed
Officer                               T: 61 (3) 9946 4460 (within Australia) or   source paper, ensuring all virgin
P M Colebatch     Auditors               61 (3) 9473 2500 (outside Australia)     pulp is derived from well-managed
G G Edington      KPMG                E: lendlease@computershare.com.au           forests. It is also manufactured by
P C Goldmark      10 Shelley Street   W: www.computershare.com.au                 an ISO 14001 certified mill.
J A Hill          Sydney
D J Ryan                              UK Register                                 The Forest Stewardship Council (FSC)
                  NSW 2000
M W Selway                            B Davis & Co                                is an international not-for-profit,                  Cert no. SGS-COC-003898

                                      Park House, 158–160 Arthur Road             non-government organisation
                                      Wimbledon Park, London SW19 8AQ             promoting responsible forest
                                      T: 44 (20) 8947 3361                        management. FSC certification
                                      F: 44 (20) 8944 1039                        is recognised as a global standard
                                      W: www.bdavis.co.uk                         in forest management practices
                                                                                  and the Chain of Custody component
                                      USA Agent
                                                                                  ensures that the final product can
                                      The Bank of New York                        be traced back to a certified source.
                                      Investor Services
                                      PO Box 11258
                                      Church Street Station
                                      New York NY 10286-1258
                                      T: 1 (212) 815 3700
                                         US Toll Free: 1 888 269 2377
                                      E: shareowners@bankofny.com
                                      W: www.adrbny.com
    Commitment                                         next
    to tHe future                                      generation

    victoria harbour in                                Lend Lease is actively
    melbourne boasts the                               developing and
    highest concentration                              investing in sustainable
                                                                                      tHe merCHant
    of green commercial                                strategies through:             K
                                                                                    •	 	 Ey	WORKER	
    buildings in Australia.                                                            RESIDENTIAL UNITS
                                                                                       DELIvERED	ThROuGh	
    the precinct is working                                                            A PUBLIC PRIVATE
                                                                                       PARTNERSHIP MODEL
    towards climate                                    green refurbishment
    positive* certification                            and green buildings –          CHiLdren’s Hub
                                                                                    •	 	 n	InTERnATIOnAL	
    which aims to set a new                            creating greener buildings      BEST PRACTICE
                                                                                       CHILDCARE CENTRE
    global benchmark for                                                               OPERATED BY
                                                                                       GOWRIE	vICTORIA
    leadership in large scale
    urban development                                  green utilities –
    that will minimise                                 energy, water and
    environmental impacts.                             waste solutions

    sustainability                                     urban regeneration –
                                                       holistic development
    in action                                          solutions
    at victoria
    details at                                                                                                 T
                                                                                                            •	 	 RAMS,	FLExI	
    lendlease.com/sustainability                                                                               CARS	AnD	GREEn	
                                                                                                               TRAVEL PLANS

                                                                                                              anZ Centre
* Climate Positive is a joint initiative between the                                                           A
                                                                                                            •	 	 uSTRALIA’S	LARGEST	
  Clinton Climate Initiative and the U.S. Green                                                                SUSTAINABLE OFFICE
  Building Council                                                                                             DEVELOPMENT
                                grouP wIDe                                 annual                    contact
                                enVIronment                                general meetIng           DetaIlS
   conVeSSo                     Performance †                              2009
•	 	 ictoriA’s	first	
   green	stAr	rAted	
   building	under	
                                Total water use¹                           The 2009 Annual           Lend Lease
   the	green	                                                              General Meeting of        Corporation Limited
   building	council	
   of	AustrAliA’s	
                             <8,000,000L                                   Lend Lease Corporation
                                                                           Limited will be held at
                                                                                                     ABN 32 000 226 228
   residentiAl	                                                                                      Incorporated in NSW
   pilot	progrAm
                                Municipal waste¹                           10.00am on Thursday,
  the gauge                                                                12 November 2009
•	 	 irst	6	stAr	green	
   stAr	–	office	As	built	
   commerciAl	building	
   to	be	owned	by	
                             <500,000t                                     at City Recital Hall,
                                                                           Angel Place, Sydney
                                                                                                     Registered Office
   A	property	fund                                                         NSW 2000. Full details
                                Municipal waste recycled¹                  of the Meeting are        Level 4, 30 The Bond
                                                                           contained in the          30 Hickson Road
                                38%                                        Notice of Annual
                                                                           General Meeting
                                                                                                     Millers Point
                                                                                                     NSW 2000 Australia
                                                                           sent with this Report.
                               Total project waste

                             <2,335,000t                                                             Contact
                                                                                                     T: 61 (2) 9236 6111
•	 	 ustrAliA’s	first	
   A                                                                                                 F: 61 (2) 9252 2192
   green	cAmpus	
   style	commerciAl	
                                Project waste recycled                                               W: www.lendlease.com


  urban DeSIgn
•	 	 	vAriety	of	
                                Greenhouse gas emissions¹

   wAter	sAving	
   Across	the	
                             1. In offices and assets under management.
                                NB: Environment performance figures have
                                been rounded off.                                                    precinct.com.au

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